Sales tax on ballot for town of 1,956

LAKE CITY — Lake City aldermen have called for a 1 percent sales tax to be placed on the Craighead County town’s Nov. 2 general election ballot to help pay for repairs to the city’s streets and sewer system.

If passed, the tax would generate about $110,000 a year, Mayor Billy Anderson said. Half of the tax would be used to repair city streets damaged by a 2009 ice storm. The other half of the collections is earmarked for the city’s water and sewer department, Anderson said.

“It’s either go with a tax or raise utilities,” Anderson said. “The tax won’t hurt our people as much. We’ll get some revenues from people passing through town. It’s the most fair way to go.”

The Craighead County town of 1,956 spends about $10,000 a year on street improvements, but Anderson sees a need for at least $50,000 for immediaterepairs. Because of growth, the city must also purchase an additional $500,000 water tank for residential use, he said.

Lake City does not have a citywide sales tax. Craighead County has a 1 percent sales tax.

“This is not a good time to ask for a tax,” Anderson said. “No time really is, but we need it. We’ll be fortunate if it passes.”