~by Jefferson city administrator Scott Peterson
As the November 3 election approaches, Jefferson residents will have the opportunity to vote on the future of the city’s Local Option Sales and Services Tax, commonly known as LOST. The proposed referendum would continue the existing 1 percent LOST and remove the current sunset date of June 30, 2027.
Over the past several weeks, I have provided information about how LOST works, the projects it has helped fund, and why the City uses this revenue for infrastructure. This month, I want to focus on accountability, transparency, auditing and what the proposed removal of the sunset date would mean for Jefferson.
Accountability is an important part of managing public funds. The use of Jefferson’s LOST revenue is restricted by the revenue purpose statement approved by voters, which provides that 100 percent of LOST revenues shall be used “for the repair, maintenance, replacement, and improvement of Jefferson’s infrastructure.”
The city cannot use LOST revenue for just any expense in the city budget. These revenues are accounted for in a separate fund and used for expenditures consistent with the purpose approved by voters.
Streets are one of the primary uses of LOST revenue. In spring 2027, the city plans to use LOST funds to help pay for asphalt overlays on McKinley St, N. Cedar St and E. Vest St. Southfield Drive, Grauer St and W. Russell St are other streets that may be considered for overlays next year, with LOST providing partial funding.
Other street projects funded by LOST in recent years include seal coating and crack sealing, concrete street repairs, sidewalks and handicap-accessible ramps. These projects are examples of how LOST revenue supports the maintenance and improvement of Jefferson’s infrastructure.
The city’s annual financial audit provides another level of accountability. The city’s financial records, including LOST revenues and expenditures, are subject to an annual audit. This independent review examines the city’s financial statements and activities and helps ensure that public funds are properly recorded and managed in accordance with applicable requirements.
Transparency is also important. Residents should be able to understand how the city collects and spends LOST revenue and what infrastructure improvements those dollars help support. Providing information about projects, expenditures and financial oversight helps residents follow how these funds are being used.
Another issue before voters on Nov. 3 is the proposal to remove the current LOST sunset date of June 30, 2027. The primary reason for the proposed change is consistency in revenue and long-term infrastructure planning.
Infrastructure projects often require planning several years in advance. Streets, water mains, sanitary sewers, storm sewers, buildings and other public facilities have useful lives measured in decades. A consistent source of infrastructure revenue allows the city to develop longer-term capital improvement plans and consider future needs when establishing project priorities.
Removing the sunset date would not increase the tax rate. The existing 1 percent LOST would continue without a predetermined expiration date unless voters take future action to change or repeal it. The revenue purpose statement would also remain in place, continuing to restrict the use of these funds to Jefferson’s infrastructure unless changed through the appropriate voter-approved process.
In short, the Nov. 3 referendum would continue the existing 1 percent LOST, remove its current sunset date and retain the revenue purpose of “100 percent for the repair, maintenance, replacement, and improvement of Jefferson’s infrastructure.”
Ultimately, the decision belongs to Jefferson voters. My role as city administrator is to provide factual information about how LOST works, how the city has used the revenue in the past, and for what purposes the funds may be used in the future. Please make sure you vote on Nov. 3.
