45170173_265705234085344_2479481299971080192_n

The Pella City Council will review a proposal to the Marion County Board of Supervisors for renewal of distribution of the Local Option Sales and Service Tax at their meeting this Tuesday. During policy and planning, an overview will be given to what will potentially be proposed for a 20-year-agreement. According to City of Pella Administration, Pella generates 64% of the overall sales tax in the county, up from 54% when the current agreement was established in 2011. That current redistribution gives Pella an additional 8% and Knoxville 4% on top of what they generate. If those rates were to match now, Pella would need to be at 12%. However, the Marion County Board of Supervisors has expressed that would cause short-term fiscal issues, so Pella is proposing to have years one and two of the agreement stay as is, with three and four up to 10%, and 12% from year five and beyond. No formal action is scheduled this week on the proposal. The City of Knoxville has proposed to the county to maintain the current four percent, and the intent is for a joint presentation between the cities in the near future. The Pella City Council meeting begins at 6 p.m. Tuesday in the Pella Public Safety Complex.