Officials see what 3-county sales tax will bring
The proposal would give Dallas, Polk and Warren about $25 million to split.
By MELISSA WALKER
REGISTER STAFF WRITER
July 12, 2006
A sales tax proposed by a Des Moines economic development group could
raise more than $843 million over 10 years, elected leaders in Dallas, Polk
and Warren counties learned Tuesday.
Most said they would move quickly with plans on how to spend the money,
even though voters won't decide the issue until November.
Officials representing the three counties and 45 cities would split about $25
million per year after money is set aside to satisfy supporters' promise of
property-tax relief and financial help for area cultural attractions.
The shopping list so far includes everything from longer library hours and
better water service to recreation centers and more police officers.
Harvey Siegelman, a former state economist, said the revenue numbers were
based on population, retail sales history and economic growth forecasts.
Siegelman said he predicted the tax increase - shoppers in the three counties
would pay 7 percent, or an extra penny per dollar on most things they buy could generate $89 million the first year. But he took into account lowerthan-expected revenue from a sales-tax increase passed in 1999 to benefit
Polk County schools. The chance for a statewide economic slowdown, he
said, prompted a conservative outlook, which brought the figure down to
about $76 million.
The tax-increase plan was devised by Project Destiny, an arm of the Greater
Des Moines Partnership.
Partnership officials say one-third of the money would go to reduce property
taxes, and another third would be earmarked for more recreation trails and
to boost metro-area cultural attractions. That money would be spent by a
regional board of directors that has not yet been appointed.
The rest would go to cities and counties to spend as they see fit; in theory,
that could mean even more property-tax relief. City officials on Aug. 31 will
submit spending details to the county auditor for inclusion on the November
ballot.
Partnership spokesman Jay Byers said the agreement guarantees that onethird of the money would be used to reduce property taxes. Residents would
see a line on their tax bills showing how much money the sales tax
contributed, he said.
City and county leaders "have to show their citizens what that means in
terms of dollar amount," he said.
De Soto Mayor Marty Glanz, chairman of the Project Destiny committee in
Dallas County, said if voters approved the plan, the property-tax rate in his
city would drop $3.75 per $1,000 of assessed value, which would save the
owner of a $100,000 home nearly $400 per year.
De Soto would receive about $137,900 to spend as it pleases.
"When you sign the agreement, you're saying you're going to use that 33
percent to offset taxes," Glanz said. "If people don't stick to that plan, then
it's kind of all for nothing. The whole point of this plan is to make this place
attractive for business" and homeowners.
Des Moines City Manager Rick Clark said he thought property-tax reduction
was the most important part of the sales-tax proposal. Savings for Des
Moines property owners have not been calculated. City leaders have said
they might spend their share on expanded library hours, Blank Park Zoo and
law enforcement, among other things. Clark suggested that some of the
revenue could also be used to pay off municipal debt.
Officials in West Des Moines and Urbandale have said they would spend their
shares of sales-tax money on recreation and community centers.
City Council members in Norwalk have worked for years to pay for street
improvements and pave roads in preparation for residential growth. City
Administrator Mark Miller said leaders there would also improve water service
and construct connections to nearby recreational trails.
George Dickerson, 69, of West Des Moines said he's unconvinced that
property taxes would go down. He worries that elected officials would go on a
spending spree and said his doubt was sparked by the ongoing salary scandal
at the Central Iowa Employment and Training Consortium, where top officials
were paid salaries and bonuses deemed excessive by a state audit.
"That's where the lack of trust comes in," Dickerson said. "I think it's bad
timing to try to get it through."
Beth Ingram of West Des Moines said city officials are good stewards of
public money, and they need more of it. She said she would rather see
higher sales taxes than a property-tax increase.
"I think they're already doing as much as they can for the money they have,"
she said. "I'd rather see them raise funds than cut services."