MINDEN — It's official: Minden city voters will decide in November whether to accept a new 1 percent city sales and use tax to finance water system improvements.
By a 4-0 vote, Minden City Council members voted Monday to place the question on the Nov. 4 general election ballot.
The city already collects a 1 percent sales tax, so the additional 1 percent would bring the total city sales tax to 2 percent on eligible transactions. The state of Nebraska collects a sales tax of 5.5 percent, so the total sales tax rate paid in Minden would increase to 7.5 percent.
If city voters approve the sales tax question, the additional 1 percent could begin to be collected on April 1, 2015.
The additional 1 percent would bring an estimated $245,000 into municipal coffers in its first year, City Administrator Matthew Cederburg said. The money would be earmarked for public infrastructure projects, except for a minor portion equaling $30,000-$35,000 per year, which would cover part of the city's funding obligations for the Minden volunteer fire and rescue department.