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Armstrong laments loss of local option sales tax

By Staff | Nov 12, 2008

In special session Monday night, the Armstrong City Council discussed the expected loss of $90,000-$100,000 in local option sales tax revenues, a figure amounting to 10 percent of the city annual budget.

Until Estherville and the rest of Emmet County approved the sales tax Aug. 26, Armstrong and Ringsted were the only communities in Emmet County with the tax. Under the state distribution formula, once Estherville, other communities in the county and rural areas approved the tax, Armstrong and Ringsted will both receive substantially less than they did formerly.

As a result, City Clerk Connie Thackery said Tuesday that the City of Armstrong will be short on projected revenues to pay for its storm sewer and pool projects, both completed this year.

Thackery said there are $105,000 in remaining pool pledges. However, the city has already had to pay the pool contractor.

The council will take action on applying for a four-year loan at its Dec. 1 meeting to meet expenses for both the storm sewer and pool projects.

Thackery said Armstrong Mayor Marv Dailey will meet with the Emmet County Board of Supervisors in January to ask the county to help pick up part of the revenue the city lost with the change in the local option sales tax distribution formula.

In other business, the council deferred action on an application for a revolving loan to MD Cleaning.