Hillsboro opposes sales tax for jail
Staff reporter
Hillsboro City Council took a stand March 7 regarding a proposed special retail sales tax for the construction of a county justice center.
In a unanimous vote, the council approved a resolution that was not in support of a one-cent sales tax increase.
The resolution stated the governing body was not opposed to the construction of a new jail facility, but does not want the funding mechanism to adversely affect business competition.
The governing body deems the imposition of a one-cent special sales tax to be "unadvisable and against the best interests of the citizens and patrons of the City of Hillsboro."
Megan Kilgore of Hillsboro Development Corporation and Hillsboro Chamber of Commerce, said chamber members are against a retail sales tax increase.
"Jail proposals have increased from $8 million to $11 million," said Kilgore, expressing her concern with inflated figures. "Hillsboro is the 'hub' of economic development in the county and would be adversely affected by the tax increase."
She continued that Hillsboro businesses could die within the time frame of the bond repayment.
City administrator Steve Garrett said he was surprised at the public meeting March 6, because he thought the plans would be further along. He did understand the need to get Marion County's name on a state statute for consideration of a special sales tax.
Another repayment option for the bond could be an eight mill property tax increase. It was determined an increase of that size would increase property taxes by about $100 on a $100,000 residential structure in the county.
Councilman Matt Hiebert, who also attended the public meeting, said there definitely were security and ADA issues with the current jail.
"There's no doubt a facility is needed," Hiebert said.
He continued that renovations to the current jail that could cost $1 million to $3 million would only be a five-year "fix," and not a long-term solution.
Councilman Shelby Dierks said he would like to see the project "scaled down" to be more affordable. He also would like to see the county promote models of jails and research other funding options.
