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Before any tax vote, provide a roadmap to recovery
The Gazette Opinion Staff
Jan. 22, 2011 11:40 pm
By The Gazette Editorial Board
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Do we protect both sides of the river from flooding, or do we settle for less?
That's the $375 million question facing Cedar Rapids' citizens and leaders. And it's also being posed by Mayor Ron Corbett and City Council members as they consider extending the city's local-option sales tax for 20 years to pay for protection that covers both sides of the Cedar River.
The Army Corps of Engineers has recommended a $100 million protection structure that guards the east bank, including downtown and industrial sites. The city prefers a $375 million project that protects 7.5 miles on both sides of the river.
Corbett has insisted forcefully that leaders will not abandon the west side. But standing firm for fairness comes at a high price. Figuring out how to cover it brings us to the sales tax question.
Options are limited. City leaders are seeking federal funding, but it's uncertain, perhaps even unlikely, that Congress will come through anytime soon to help pay for the Corps' even more limited recommendation.
Cedar Rapids is lobbying the Iowa Legislature for permission to keep a portion of state sales taxes collected in Linn County to help pay for flood control. That plan also faces uncertainty.
While lawmakers deliberate, attention turns to local sources of funding. Selling construction bonds financed by higher property taxes would be politically and economically tough to swallow. Some leaders cite gambling as a source, but the state gaming commission says no new licenses will be awarded anytime soon.
Some have argued that the city should cut its budget to come up with the money, but the bonds sold to pay for construction require a dedicated, steady source of funding for repayment. Annual reductions won't cut it.
That leaves the sales tax. It make sense to consider it, and the fact that it must be put to a public vote will spark a much-needed public debate over a critical issue. It's tough to think of a decision more important than whether or not this city opts for full, partial or no new flood protection.
Much rides on the verdict, including potential private investment downtown and in core neighborhoods. Business owners and residents are waiting and watching.
Corbett and the council still have a considerable sales job. Task one, in our view, is to explain how the city plans to manage all of its many recovery priorities, and pay for all of the projects that have been approved. The public deserves a clear picture of how all of these projects and obligations fit together, and where we face gaps. The city must present its road map to recovery before asking voters to extend that road for 20 years.
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