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Knoxville City Council Calls for Referendum, Approves Agreement

Posted: Tuesday, December 14th, 2010 at 6:28 am
Author: KNIA/KRLS News-Dr. Bob Leonard

The Knoxville City Council met in special session last night, and approved a resolution calling for a public referendum on the extension of an existing 1% Local Option Sales and Service Tax (LOSST). The referendum will likely be held in March. Monies received from the tax are used to support city infrastructure.

The Council also approved a proposed 28E agreement between the cities of Knoxville and Pella and Marion County regarding the allocation of those LOSST revenues. Since both Knoxville and Pella together generate over 95% of the revenue gained from the tax, they seek a larger percentage of funds that currently go to Marion County. Under the new proposal, Knoxville would receive approximately $134,000, Pella approximately $267,000, while county government would see an approximate net loss of $400,000. The allocation to smaller communities in the county would be unchanged under the proposal.

The city of Pella and the Marion County Board of Supervisors will likely consider the proposed 28E agreement later this month.