Half-Cent Tariff Raises Millions for Community
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It’s amazing what a half-cent sales tax can accomplish.
In San Angelo’s case‚ the tax has generated approximately $34 million since city voters first approved it in 1999. About 65 percent of those dollars have been paid by local citizens‚ with the rest coming from visitors – and the results have been nothing short of dramatic. Most of the funds have been funneled into much-needed projects benefiting the entire community.
“I’m real proud of what we’ve been able to accomplish‚” says Kathy Keane‚ business relations officer for the City of San Angelo Development Corp. “By next year‚ the citizens will really be able to see the results‚ and I think they’ll be tremendously impressed with how far their sales tax dollars have gone.”
According to Keane‚ the first priorities were to dredge Lake Nasworthy – to increase capacity and improve safety for recreational activities – and to build a new arena for the fairgrounds.
The fairgrounds complex regularly hosts major rodeos and stock shows‚ and the new Spur Arena brings state-of-the-art facilities to those events.
The city was also able to make improvements to the San Angelo Coliseum‚ a multipurpose venue built in the 1950s. With the success of the 1999 sales tax‚ voters approved a second refer endum in 2004‚ with a 20-year sunset. This tax is expected to generate some $93 million over its lifetime‚ although the tax collections are actually running stronger that previously estimated. Of this amount‚ 75 percent is earmarked for specific projects‚ while 25 percent will be used for economic development such as incentives for businesses to relocate or expand in San Angelo.
The first priority this time around: water. Of the total revenues‚ $17 million has been earmarked for addressing San Angelo’s water supply. A major saltwater underground aquifer about 15 miles west of town is being explored as a possible new supply.
“We’re still going through somewhat of a drought‚ but at the time of the vote‚ our water supply was a major concern‚” Keane says.
The city is studying the feasibility of building a desalination plant to use the aquifer’s water.
Additional work has also been done at the fairgrounds‚ adding two new livestock buildings and expanded parking to further complement the arena complex. The facility is now ranked fifth in the nation on the professional rodeo circuit.
The city also is investing in major improvements at the Rio Concho Sports Complex and Community Park‚ building a new public tennis facility‚ dredging the Concho River and initiating a bank stabilization project‚ and renovating the city-owned convention center.
The pay-as-you-go portion of the sales tax dollars includes an affordable housing initiative‚ with the city pro viding mortgage gap financing of up to $25‚000 to help low-income residents buy new homes‚ and economic devel opment incentives to private businesses that have so far helped create or retain about 2‚300 jobs.
Story by Jim Elliott
Photo by Antony Boshier
