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Sales tax proposal heading to legislators


By Tom Smith
Senior Staff Writer

Published: Tuesday, March 13, 2007 at 3:30 a.m.
Last Modified: Monday, March 12, 2007 at 10:57 p.m.

FLORENCE -- Lauderdale County commissioners approved a resolution Monday that could lead to the creation of an economic development incentive fund in the Shoals.

A QUICK LOOK
  • The Issue: The Shoals Economic Development Authority has proposed creating an economic development fund through the implementation of a half-cent sales tax increase.
  • What's new: The Lauderdale County Commission joined the Colbert County Commission by approving the proposal.
  • What's next: The resolution will be sent to the local state legislative delegation to be drafted and then introduced for passage in the Alabama Legislature.

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    Resolution
    The text of the resolution approved today:

    Whereas, creation of non-retail job opportunities that support salaries at or above the estimated entry wage per occupation as established by the most recent State of Alabama Wage Survey is one of the highest priorities of the Lauderdale County Commission; and

    Whereas, economic development in the Shoals requires an overall plan, including establishment of an economic development fund to provide a consistent source of funding needed to provide inducements for recruitment of new industry, acquisition and development of land to be utilized as industrial parks, construction of buildings for lease to industries, support for expansion of existing industry in the Shoals and funding of operations of the Shoals Economic Development Authority (“SEDA”); and

    Whereas, SEDA has requested the Lauderdale County Commission to approve a .5% general sales/use tax in the County in an effort to establish the funding of economic development in the Shoals to be collected and administered in the manner set forth in this Resolution; and

    Whereas, to accomplish the intend of the Resolution will require passage of two local legislative acts, including one act pertaining to the authorization of the County Commission to implement a county-wide .5% general sales/use tax and one pertaining to the establishment of a legal entity to be known as the Shoals Industrial Development Committee (hereafter referred to as “SIDC”) to collect and administer the tax in the manner set forth in the resolution; and

    Whereas, the Lauderdale County Commission hereby finds that it is in the best interest of the citizens of Lauderdale County to support the local legislation needed to accomplish the intent of this Resolution.

    Now, therefore, it is hereby resolved by the Lauderdale County Commission, governing body of Lauderdale County, Alabama, that the legislative delegation representing Lauderdale County, Alabama is hereby requested and encouraged to introduced and have passed a local bill in the 2007 state legislative session a bill authorizing the Lauderdale County Commission to levy and college a .5% general sales/use tax within Lauderdale County, such legislation to include the following provisions:

    (a) All revenues generated by the general sales/use tax are to be distributed to SIDC and deposited into a segregated account known as the Shoals Area Economic Development Fund;

    (b) All expenditures/disbursements of monies from the Shoals Area Development Fund, including authorized investments of the general sales/use tax, shall be approved by SIDC only upon request of SEDA and, further, may be utilized only in furtherance of the purposes stated in this resolution and the powers provided in SEDA’s authorizing legislation; and

    (c) The .5% general sales/use tax is not to be abated as an inducement for economic projects.

    Be it further resolved that the legislative delegation representing Lauderdale County, Alabama is hereby requested and encouraged to introduce and have passed a local bill in the 2007 state legislative session a bill establishing SIDC pursuant to the laws of the State of Alabama authorizing the creation of certain authorities for the purpose of promotion of a local economy, general economic development and industrial recruitment and providing certain powers to SIDC, such legislation to include the following provisions:

    (a) The members of SIDC shall be consist of the following:

    - Colbert County – one appointment by the Colbert County Commission of an elected member of the County Commission to serve at the will of the County Commission. If the appointed member ceases to be a member of the County Commission, the County Commission shall appoint another commissioner to serve.

    - City of Muscle Shoals – the Mayor of the City of Muscle Shoals.

    - City of Tuscumbia – the Mayor of the City of Tuscumbia.

    - City of Sheffield – the Mayor of
    the City of Sheffield.

    - City of Florence – the Mayor of the City of Florence and one appointment by the City Council of Florence of an elected member of the Council to serve at the will of the City Council. If the appointed member ceases to be a member of the City Council, the City Council shall appoint another council member to serve.

    - Lauderdale County – the Chairman of the Lauderdale County Commission and one appointment by the Lauderdale County Commission of an elected member of the Commission to serve at the will of the County Commission. If the appointed member ceases to be a member of the County Commission, the County Commission shall appoint another commissioner to serve.

    - At large members – One mayor from the following towns: Anderson, Killen, Lexington, Rogersville, St. Florian and Waterloo, to serve on a rotating basis for a one-year term. One mayor from the following towns: Cherokee, Littleville and Leighton, to serve on a rotating basis for two year terms.

    (b) SIDC shall implement procedures for collection and deposit of the general sales/tax into a segregated account known as the Shoals Area Economic Development Fund. Investment of funds may only be made in “legal investments” as defined in the legislative act.

    (c) SEDA shall be the only entity that may request funding from SIDC. No more than 10% of the annual revenues generated by the general sales/use tax may be directed to the operating budget of SEDA. All expenditures or disbursements of monies from the Shoals Area Economic Development Fund, including authorized investments of the general sales/use tax, shall be approved by SIDC only upon the request of SEDA and, further, may be utilized only in furtherance of the purposes stated in this resolution and the powers provided in SEDA’s authorizing legislation.

    (d) Such other provisions as deemed necessary to enable SIDC to fulfill the intent of this resolution.

    Be it further resolved that the legislation to implement a county-wide .5% general sales/use tax and the authorizing legislation of SIDC is to be approved by the County Commission in the manner it deems appropriate prior to being advertised by local bills.

    Passed and adopted on this the 12 day of March, 2007.

    The commissioners, on a 2-to-1 vote, agreed to ask state legislators who represent Lauderdale County to seek legislation creating the fund.

    If approved in the state Legislature, a half-cent sales tax will be added in the county, with proceeds going to create the incentive fund.

    The resolution is the same one approved by Colbert County commissioners last week.

    Lauderdale commissioners Ronnie Brown and Larry Irons voted for the resolution, with William Smith voting against.

    Commissioner D.C. Thornton did not vote since he was filling in for commission Chairman Dewey Mitchell, who was out of town.

    "This is a step to secure jobs for the future of the Shoals area,'' Irons said.

    Brown said providing an economic development incentive fund is one of the "greatest things we could have done for the area.''

    Smith said his vote was not a negative one for economic develop, just against the sales tax issue.

    "I strongly support economic development, but I'm opposed to this without letting the people vote on it,'' he said. "Sales tax is the more regressive tax. It hurts everyone.''

    The resolution also calls for the creation of the Shoals Industrial Development Committee to oversee proceeds from the sales tax if it passes. The committee would be made up of elected officials from the two-county entities and from mayors of rural townships.

    "It's important for elected officials to control (the proceeds),'' Smith said.

    Florence resident and businessman John Hargett passed out a letter to commissioners to have it read into the record opposing the sales tax increase.

    "We've got too much government in this country, and I disagree that government should be involved in economic development,'' Hargett said.

    "For government by intervention to try to improve the working of a free market, which reflects a consensus of the wisdom of the citizens of this county, makes about as much sense as carrying a kerosene lantern outside at noon on a bright June day to show someone the sun,'' he said.

    Irons said the area has enjoyed some recent success with luring industries to the area and providing more than 2,000 jobs. But that incentive money came from the general funds of local county and municipal governments.

    "The entities can not continue to take money out of the general fund,'' Irons said. "This stops that as well as letting us fund the SEDA operation by up to 10 percent of the sales tax proceeds. In turn, we'll be able to keep money in our general fund that we had been spending. If we're going to survive, this is something we need.''

    Thornton said the commission has done its part. "Now, it's up to the legislators.''

    In other unanimous action, the commission:

  • approved a contract with AlaServe LLC, of Mount Hope, to do electrical work on a new above-ground fuel tank at the cost of $4,738.05.

  • agreed to a contract with Iron's Electric Co., of Florence, for $3,500 to do electrical work at the jail.

  • approved a contract with MJ Carter Co., of Florence, to provide insurance coverage for the county.

  • accepted a bid from U.S.A. Blue Star to supply concrete for county use.

  • reappointed Jimmy Neese to the Northwest Regional Airport Board, and Susan Adams to the Florence-Lauderdale Library Board.

  • approved an agreement with the Alabama Department of Transportation to do safety striping on portions of Lauderdale 25, Lauderdale 61 and Lauderdale 89.

  • approved changing the hours of operation for the county road department for the summer to four 10-hour weeks beginning March 19.

  • accepted a change order for $5,175 for additional repairs to the foundation on the courthouse plaza.

    Tom Smith can be reached at 740-5757 or tom.smith@timesdaily.com.



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