Sales tax could help Village infrastructure

by Gerri Peterson
Last Wednesday the public had the opportunity to voice their opinions and ask questions at an informational meeting regarding the one-half percent sales and use tax increase that will be on Village of Mullen residents’ ballots for the Primary Election on May 14. 
Village Board Chairman Josh Barnes, Trustees Devan Polt, Chad Myers, Tanner Crisp and Shelby Ridenour, Village Clerk Deb Daly and Village Deputy Clerk Jessie Cash were at the front of the room to provide information. 
The Village of Mullen’s infrastructure - water systems (including water pressure, waste water, storm water, etc.) and electricity - are all in need of a major overhaul throughout most of the town.
Something that should have been done 20 years ago, according to the board. 
Currently as problems need fixed, Village employees are patching things up. But some of the electrical equipment needed, for example, is getting harder and harder to find because of how outdated the Village’s system is. 
The total price for all project bids is currently over $5 million. 
The Village has three options to fund these projects - sales tax, utility rates and property taxes.
They want to start with a sales tax increase because it is something that everyone who purchases items in town would contribute to - not just village residents.
The ballot question will also include wording about increasing the Village’s budgeted restricted funds, which would allow the board to adjust their budget for the additional funds that would come in if the sales tax passed. 
Increasing sales tax one-half percent would mean paying half a cent on every $1 - or 50¢ for every $100. 
If the one-half percent sales tax would pass, the Village would receive about $80,000/year, which would cover the payment and interest for a $1 million bond over 20 years. 
If the sales tax were to pass in May, another board could be formed for an interlocal agreement with the Village of Mullen Board, and that board could have another one-half percent sales tax on the Primary Election ballot in November to cover another $1 million bond over 20 years.
But $2 million doesn’t even cover half the projects needed.
The Village has applied for several grants over the years. They were approved for a grant for the water project two years ago, but then flooding happened in northeast Nebraska and there went all the funds. 
While they were waiting for those SRF (state revolving loan funds) that included 55% loan forgiveness, the bids on that project more than doubled in two years. 
Other grants require setting utility rates as high as $65 for water only, for example - and then charging for usage on top of that. The Village of Mullen may have some of the lowest utility rates in the state for a town of our size, but the board doesn’t want to raise them that high.
The Village of Mullen currently receives $57,000 a year from property taxes. 
The board could set a property tax levy for Village of Mullen residents. $360 on every $100,000 valuation would allow them to pay another $1 million bond over 20 years. 
Chairman Barnes said the Village Board has made progress on the budget. Where before all the utility accounts were in the red, now they may not be making a profit, but they are all at least breaking even. A few months ago the utility rates did all increase by less than $10 each. 
While no one wants to pay more for anything, as one public member at the meeting put it, “You’re talking about the livelihood of the town.”
The board agrees. 
“We want to fix it now for the next generation,” Trustee Crisp said. 
“I hope Mullen is thriving in 20 years,” Chairman Barnes said. “We need to find a way to go forward.”
The Village of Mullen Board members welcome any other ideas the public has to fund these projects.