End of the Line for LOST

From the Press Citizen, in the business section:

Iowa City sales tax to drop July 1
Beginning July 1, sales tax in Iowa City will drop to 6%.

The 1 percent Local Option Sales Tax (LOST) Iowa City voters approved four years ago to help raise funds for flood recovery and protection efforts is set to expire at the end of June. The City of Iowa City sent a news release Monday, reminding businesses not to collect the tax after June 31.

The tax helped raise more than $34 million for flood mitigation projects, and has helped provide the city's share of funding for two major public infrastructure projects: the relocation of the North Wastewater Treatment Plant at 1000 S. Clinton St., and the "Gateway Project," which will elevate a flood-prone section of Dubuque Street and reconstruct Park Road Bridge. 

Other than the obviously non-existent "June 31" in the article this is a very small and quiet ending for a very large chapter in University Heights.  Johnson County voters were given the opportunity to vote on a 4 year 1 cent local sales tax to help fund flood related projects on May 5, 2009. Any municipality in the county who passed a measure would be allowed to collect sales tax on eligible items (notably food and medical services were exempt) All money collected within passing jurisdictions would be pooled and then re-allocated back to those jurisductions. 

Here's what happened in the two largest jurisdictions in the county and U-Heights

City	Turnout	Percentage	YES	Percentage	NO	Percentage
Iowa City	7,279	15.14%	3,641	50.05%	3,634	49.95%
Coralville	1,921	17.25%	956	49.79%	964	50.21%
U-Heights	199	26.82%	159	80%	40	20%

Yes, you're seeing that correctly. Iowa City passed the measure by 7 votes and Coralville defeated it by 7 votes. U-Heights "Yes" vote percentage was the highest in the county. Every small town passed the measure EXCEPT North Liberty and the portion of West Branch that lies in Johnson County (where it failed in an exciting 6-4 vote). Unincorporated Johnson County also defeated the measure. Our turnout percentage was 3rd highest in the county, barely behind Hills and Oxford. 

Why did we pass it with such a high rate? One major reason was that we had applied for wide sidewalk grants and this would allow us to get the local money needed for our 20% match. The other major reason was that we barely had anywhere in town that would be collecting the sales tax! We paid it when we shopped in Iowa City or anywhere other than Coralville and N. Liberty.Our portion has averaged nearly $10K per month since our first payment in September 2009. For the last 4 years roughly 10% of our annual budget revenues has come from LOST. Our last scheduled payment will be this September.

Here was the revenue purpose statement that appeared on our ballots 

Summary: To authorize imposition of a local sales and services tax in the city of University Heights, at the rate of one percent (1%) to be effective from July 1, 2009, until June 30, 2013.

A local sales and services tax shall be imposed in the city of University Heights at the rate of one percent (1%) to be effective from July 1, 2009, until June 30, 2013. Revenues from the sales andnservices tax shall be allocated as follows:

• 0% for property tax relief.

The specific purpose for which the revenues shall otherwise be expended is:

• 100% for street improvements, sidewalk widening projects, and/or any other lawful purpose.

We have used, and will use the money for our sidewalk projects, and the revenue collected the past four years has also helped make up for budget shortfalls.  What has been particularly noticeable is that it evened out our cash flow, since we receive property tax revenues (the vast majority of our city revenue) only twice a year in April and October.