Rognstad pitches LOT to Rotary
A mechanical failure caused partially treated water to be distributed by the Sand Creek water treatment plant in mid-July.
SANDPOINT — Mayor Shelby Rognstad took his pitch for a proposed seven-year 1% local option tax to Rotary members on Wednesday Oct. 6.
The mayor told club members the last LOT expired last year and was used to fund War Memorial Field. The funds went toward improvements at the field, the boat launches, and parking, as well as toward a future dog park, he said.
“We consider that a complete project and I think we more than exceeded our taxpayers expectations for that project,” said Rognstad.
He said the proposed tax would raise approximately $13 million and would go to improvements at City Beach, the downtown waterfront along Sand Creek and the sports complex at Travers/Centennial Park. About $200,000 in LOT funds each year would go to sidewalks that are part of the priority connection network, library, school, downtown, said the mayor.
He said the LOT would also allow the city some flexibility for purchasing property as was recommended in the parks and recreation master plan. The mayor said this is all in order to maintain the same level of service provided to the residents today.
“As the Sandpoint continues to grow, we will eventually have to add park acreage over time in order to maintain that same level of service for future residents,” said Rognstad.
In response to online criticism that the LOT would tax residents and not tourists, the mayor said it’s actually an investment for residents.
“It's our visitors that come here every day, throughout the year,” said Rognstad. “They use our parks, they use our sidewalks, they use our streets, they use our facilities, and they don't pay for it. Sandpoint residents paid for by their property taxes.”
He said this is a way to allow those who come here and use Sandpoint’s facilities to be able to share the cost. Every dollar that is raised through that 1% sales tax, Rognstad said 85 cents of that comes from non-residents.
The LOT offers a huge leveraging opportunity, the Sandpoint mayor said the city has almost seven times as much money coming via that 1% sales tax is from non-residents, said Rognstad.
“If you live in Selle Valley or Sagle, it’s the same situation,” said Rognstad. “You could be coming here to work every day, but your taxes aren’t contributing to the infrastructure you’re using.”
In answer to a Rotary Clubmember’s question on what the merchandise would be taxed, the mayor said that the 1% LOT is for sales across the board, whether it’s service, business or retail.
“To qualify I believe there are exemptions for like medical supplies and that kind of thing,” said Rognstad.