County sixth penny tax nearly approved for ballot

Theresa Davis, Gazette Editor
Posted 6/14/18

“It’s a specific amount for a specific purpose, and the projects the money has to be used for are either approved or denied by the voters,” Nelson said. “The voters are in charge.”

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County sixth penny tax nearly approved for ballot

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Kemmerer City Administrator Andrew Nelson presents to Lincoln County Commissioners on June 5 about the sixth penny tax. (GAZETTE PHOTO / Theresa Davis)

Representatives from most of the municipalities in Lincoln County attended the Lincoln County Commissioners meeting on Tuesday, June 5, to show support for placing a sixth penny tax on the Nov. 2018 ballot.

All nine municipalities in the county signed a joint resolution to place the sixth penny tax on the ballot, with a detailed cost and description of the proposed projects.

The total anticipated revenue of the proposed sixth penny tax is $15,302,422. Lincoln County communities have proposed projects that totaled $12,455,492.

According to Kemmerer City Administrator Andrew Nelson, who presented at the meeting, that leaves as much as $2.9 million in additional funds that will be generated by the sixth penny tax. Nelson suggested that because this money has to be specifically proposed to fund certain projects, the county commissioners could determine projects to use those extra funds that would  benefit the whole county.

The Commissioners agreed to sign the joint resolution at their next meeting, after they would have time to select appropriate projects. This would streamline the process by creating one joint resolution with the projects of all the municipalities and Lincoln County. 

The official name of the proposed tax is the local specific purpose excise tax, although it’s widely known as the sixth penny tax.

Nelson mentioned that the sixth penny tax would help increase revenue for Lincoln County that is often lost to other counties and neighboring states.

“Many counties in Wyoming have a fifth or sixth penny tax, so it’s not unprecedented,” Nelson said.

Most of the municipalities have chosen to place street repair projects on the resolution.

For example, the town of Diamondville has chosen their proposed projects to be a mill and overlay on the following roads: McGovern, Burke, Keane, Glenco, Star, Sublet, Diamondville, Gomer, Susie, Lincoln, Hillcrest, Oakley, Twin Creek and Radiant.

The city of Kemmerer has also placed street projects on the joint resolution to be funded by the proposed sixth penny tax, including reconstruction and repair projects on 5th West, Elk Street, Canyon Road and Dell Rio.

Nelson dissected the aspects of the sixth penny tax for all present at the meeting. He also reminded the commissioners and the audience that if voters pass the sixth penny tax, it will not introduce any new taxable items.

“It’s a specific amount for a specific purpose, and the projects the money has to be used for are either approved or denied by the voters,”  Nelson said. “The voters are in charge.”

“The tax ends when the amount needed is collected, not when the projects are completed,” Nelson continued. “With the state on an ever-tightening budget, this is a good way for our communities to fund their projects faster.”

Nelson said after the money is collected, there will be a monthly distribution by the Lincoln County Treasurer. No money goes to the municipalities until all the project amounts are funded.

“This could be a really great thing, because small towns have a chance to get the money to fund necessary projects that they would probably not get otherwise because of their size,” Nelson said.

Opal town clerk Jane Broadhead spoke up at this point in the meeting.

“We’ve seen a recent loss of state grant funding,” Broadhead said. “This would allow us to receive that important funding for projects that are necessary for a little community like Opal.”

The other municipality representatives nodded their agreement. It is anticipated that the projects will be funded by a sixth penny tax for 3 years and 3 months.

County Commissioner Jerry Harmon addressed Nelson, the municipality representatives, and the audience.

“I have been accused of being against this, because I did run on a platform of no new taxes,” Harmon said. “But I would not try to stop this. I think the fact that the County can now determine some projects will be beneficial to the voters, because many live outside of a designated municpality.”

Kent Connelly agreed that the County Commisioners were united in support of placing the sixth penny tax on the ballot and allowing the voters of Lincoln County to determine its fate.

“The options for revenue sources are limited,” Connelly said. “If the voters determine to pass this, it’s really telling the state where we want to head in terms of projects and where voters want the money to go.”

Commission Chairman Robert King added his thoughts on the sixth penny issue.

“We are certainly not opposed to this,” King said. “It will be a challenge to select a project that will benefit the whole county, but we really do want to help our communities build up their infrastructure.”

Nelson said after the Commissioners pass the resolution, there will be workshops and Q&A sessions about the sixth penny before the November 2018 election to help educate voters about the ballot question.