In a recent work session to discuss the Fiscal Year 2023 budget, Kingman City Manager Ron Foggin presented City Council options for a sales tax or a property tax to fund street maintenance and improvements.
A recent poll showed 96% of residents responding that street maintenance and improvement is essential, but 85% reported existing quality as fair or poor, and 80% said they could support a property tax for pavement preservation.
The total 10-year cost for a pavement preservation program is estimated at $103M. The general fund could provide for $55.5M through Fiscal Year 2029, and some additional outside funding is also available.
A staff proposal to raise the sales tax, combined with other funding sources, would raise $109.4M over 10 years, exceeding the $103M need.
The proposal to raise the property tax would put the rate at $179/$100K of assessed value and raise $22M. When combined with other funding sources, the revenue would be $107M.
Foggin said he was optimistic the pavement preservation program could be completed in seven years.
If Council chooses to go for the sale tax option, it will have to go to the ballot in an even-numbered year. Foggin recommended putting it on this November’s ballot, since 2024 is a presidential election year. Property tax measures have to go on a May ballot, meaning it could be put to a vote next year.
No action was taken in the work session. (Source)