Officials: Sales tax should be enough

By By Leada Gore, Hartselle Enquirer
City officials remain confident sales tax revenues will be enough to fund bonds needed for the construction of a new high school, despite a downturn in sales tax revenue.
The first month of the year shows sales tax revenues remained constant to what they were in January. The 1-cent sales tax increase will generate $1.4 million a year, short of the $1.6 million needed to pay for the bonds on the $40 million high school.
But making projections based on January’s figures aren’t an accurate depiction for the year.
In addition, Tankersley said the city has built in a cushion in its bond payments. The city budgeted $1.6 million in bond payments but actually only needs about $1.5 million from the tax. And, he said, there is a period of time after the tax collection began that the city has not had to make a full payment, meaning its had time to build a reserve.
In the meantime, the city is working on a funding deal with the Hartselle City School Board in the event sales tax revenues don’t cover the bond payment. The board has pledged $300,000 per year to help cover the cost and the city has added an additional $1 million outside the sales tax revenue. The combination is hoped to be enough to cover the estimated $2.8 million in annual bond payments. The two entities are close to an agreement on how shortfalls would be handled.
The new high school will be built on Bethel Road and is being funded through $22 million in federal loans and $18 million in bond money.