Thursday , July 19, 2012 - 1:03 PM
RIVERDALE — Following years of lobbying and a bill that successfully passed during the 2012 general legislative session, Riverdale officials are more confident of their financial future.
“Years of lobbying with supportive facts have provided this opportunity, which is critical to the financial future of Riverdale City,” city administrator Larry Hansen said.
The city council voted to adopt an extension to the municipal local option sales tax, something that will keep sales tax revenues coming into Riverdale through 2030. Before passage of house bill 81, the city’s sales tax revenues were set to take a hit in 2016.
For years, city staff has been referring to that year as their “cliff.”
“This eliminated a cliff we had coming in 2016, and provides for the financial security and sustainability of our revenues’ predictably through 2030,” Hansen said.
The 0.2 percent city option sales and use tax would be imposed on transactions that occur within Riverdale municipal boundaries. City officials say they need the additional revenue to provide emergency and other services to the thousands of shoppers who come through their “retail destination” town each day.
Adoption of the ordinance “would contribute in helping meet the financial obligations of the city and assist in preserving the safety, health, prosperity and improving the peace, order, comfort and convenience of the inhabitants and visitors of the city,” according to the newly adopted ordinance.
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