City Administrator and Utility Director Ron Urton reported that the Economic Development Committee continued its discussion on an economic development sales tax. He stated that on July 18th, the committee discussed the possibility of requesting a half-cent sales tax as a forthcoming ballot measure. In the previous month, the committee had discussed a quarter-cent sales tax.
Urton explained that certain government programs involve an entity contributing 20 cents, with the government matching it with 80 cents. By requesting a half-cent sales tax, more funds could be obtained to leverage these programs and receive additional financial support.
According to a state statute, 25% or less of the revenue generated from the economic development sales tax should be allocated for administrative purposes. At least 20% of the revenue should be dedicated to projects related to long-term economic development preparation. The remaining revenue can be utilized for marketing initiatives, providing grants and loans to companies for job training, equipment acquisition, site development, and infrastructure, training programs to prepare workers for advanced technologies and high-skill jobs, legal and accounting expenses associated with the economic development planning and preparation process, as well as developing value-added and export opportunities for Missouri agricultural products.
Urton mentioned that Scott Sharp, the Executive Director of the North Central Missouri Development Alliance, presented a list of existing sales taxes for communities in the area. He revealed that Trenton’s total sales tax currently stands at 8.36%, while other communities have higher total sales taxes. If voters approve a half-cent economic sales tax, Trenton’s total sales tax would increase to 8.86%.
Sharp has been tasked with drafting an informational brochure that explains the purpose of the economic development sales tax and how it could be utilized. The brochure will be reviewed by the Economic Development Committee during its meeting on August 22nd at 4 o’clock.
Urton stated that the committee will likely bring the matter to the city council at some point, seeking their vote to include the issue on a ballot. If the city council approves, it could be included on the April ballot.
Regarding the Trenton Utility Committee, Urton reported that on July 18th, they discussed the excess capacity of the water and sewer plants.
He mentioned that if another business or numerous new houses were to come to the city, the water plant could treat and provide more water.
The same applies to the sewer plant. If a new plant were to be established in Trenton, producing a significant amount of wastewater, Urton stated that the sewer plant would be capable of servicing it.
