HUTCHINSON, Kan. – The Hutchinson City Council went ahead with the first step in what could be a vote on a sales tax increase to fund major improvements to the Hutchinson Sports Arena.
They approved the motion to have staff proceed in working out a bond schedule and bond coverage for funding the $29 million project. The action would also give the green light for drafting an ordinance that would place the sales tax question on the April 2015 ballot. The city will ask voters to approve the 0.35% sales tax increase at that time. Action on that ordinance would come during the Council’s Jan. 20 agenda session. City Manager John Deardoff suggested that they would also set up a maintenance fund for the Arena which could add another 1.5 million dollars to that total.
Also Tuesday, the Council approved a contract with the South Central Kansas Economic Development District to act as the administrator for a Community Development Block grant for the Mervis Rail car project. The contract is for $17,000. The grant to Mervis totals $750,000. That’s a correction from the amount earlier provided with the city council packet.
The council also approved the proposed storm water utility program increase. The fund will help pay for long term repairs to the city’s storm sewer system. The amount would be $4.75 a month for each equivalent residential unit and for larger commercial properties, that could mean a big increase in what they have been paying, so much so that the council decided to not even start this increase till January 1, 2016. This after State Fair Manager Denny Stoecklien says their rate would jump to around $5,000.