The City of Pella has released information about how the Local Option Sales and Service Tax (LOSST) works in the community ahead of the September 13th referendum for extension in their monthly newsletter.
Pella Mayor Don DeWaard says LOSST funding has played a role in assisting with quality of life projects, including at the Pella Aquatic Center, Pella Sports Park, Caldwell Park, and the Wonder Spelen playground. Half of the revenue from the sales tax approved by voters in 2011 has been used for property tax relief and road improvements, including reconstruction on University, Jefferson, and Hazel Streets. A portion of the funds is also redistributed to Marion County.
According to the City of Pella, more than 60% of the funds generated by the Local Option Sales and Service Tax were estimated to come from out-of-town visitors — and without an extension, that revenue stream would no longer be available after December 2023.
Voters will have the option to extend the tax on Tuesday, September 13th with a yes or no vote, with a simple majority (more than 50%) required. The Pella City Council intends to use the revenue from the potential extension of the already existing levy to fund a new indoor recreation facility, renovations to the Pella Community Center, an extension of University Street east, and continued road projects.