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City sales tax to be on ballot

By Alan Reed
Managing editor
Published/Last Modified on Wednesday, March 11, 2009 10:21 AM CDT


The Williston City Commission is asking residents to extend the 1 percent city sales tax that is set to expire on June 30, 2010.

During Tuesday evening’s regular meeting, commissioners set Tuesday, June 9, as the date for the election to vote on extending the sales tax for another 10 years. The decision came after a recommendation from a committee that had been created by the commission to research the matter.

“The committee feels very strongly that the commission should recommend it for a revote,” Commissioner Brad Bekkedahl reported to the commission Tuesday on behalf of the committee.

The existing ordinance allows 75 percent of the sales tax to be used for property tax relief through debt reduction and necessary infrastructure projects. The remaining 25 percent goes toward economic and community development projects through the Williston Star Fund.

In reviewing the current ordinance, Bekkedahl said committee members discovered the true financial impact it had on the city. In the area of direct city infrastructure, Bekkedahl said $17 million in sales tax funds were leveraged to produce almost $55 million in improvements. He said while the city has greatly benefitted from the infrastructure improvements, city director of Public Works/Engineering Monte Meiers, “did show us there is a lot more to do. We feel the city needs to continue to leverage sales tax dollars for infrastructure.”

From an economic development perspective, another $4.9 million in sales tax funds have been leveraged to contribute almost $80 million in improvements, Bekkedahl said. In reviewing the existing sales tax ordinance, he said the committee, “also felt it important to allow for quality of life projects.” So that is included in the ballot language for residents to consider.

Mayor Ward Koeser said the the city has a limited home rule charter which allows the city to have a sales tax, and the limits on the charter do not change as part of the upcoming vote.

He said it is important for community residents to become educated on the matter leading up to the vote. To help in that regard, Koeser said a group of community people are forming a committee to share information. Several community forums on the matter are also likely to be scheduled.

“This is an important issue for the city,” Koeser said. “When you look at the infrastructure alone, we have made some great strides. But we have some great strides to take yet.”

Bekkedahl said the original sales tax was created to help pay down city debt. When the sales tax was first passed, the city removed 60 mills from its property tax levy.

“The 60 mills has never been placed back on,” he said.

The formal ballot language people will vote upon reads as follows:

“Shall the city continue to impose a retail sales and use tax of no more than one percent of those gross receipts taxed pursuant to state law and to amend the home rule chart to provide that 75 percent of the proceeds of such city sales and use tax shall be dedicated to property tax relief through debt reduction and to necessary infrastructure and 25 percent to an economic and community development fund (Williston STAR Fund), which includes workforce development, community enhancement and quality of life projects. Upon passing a resolution by a 4/5th vote of the commissioners, the City Commission may reallocate up to a total of 74 percent of the proceeds to either use described above. An ordinance continuing to impose a city sales and use tax adopted to this vote shall expire no later than June 30, 2020.”

In an unrelated matter Tuesday, commissioners rejected an application from Hans Kemnitz to start a second taxi cab service in the city. Williston has long been served by Basin Cab and commissioners voted 3-2 to limit the service provided in the city to that firm.

Koeser and commissioners Howard Klug and James Lawson voted against the Kemnitz application. Bekkedahl and Commissionerr Brent Bogar voted to allow Kemnitz the taxi license.

In giving a committee report, Bekkedahl said its concern was to not negatively impact the service already provided to the city.

“I cannot tell you there is not a risk in this,” he said.

Kemnitz said he has worked on this project for about nine weeks, which first included visiting with various business owners and managers.

After receiving a positive response from these individuals, Kemnitz then visited with others and did a couple of his own surveys to determine the level of need for a second service.

“The majority of the business I have found is during the bar rush,” Kemnitz told the commission.

As a result, he proposed to run one cab from 3 p.m. to 3 a.m., as he is limited by federal Department of Transportation rules to working 12 hours at a time.

“I would like to operate for the remainder of 2009 myself to see what the demand would be,” Kemnitz said.

He also had talked with all of the taxi cab services in the state, including a Fargo firm that was willing to mentor him as he got the new enterprise started.

Kemnitz said he was not looking to put the existing cab service out of business.

“I’m not going to do it with one cab,” he said.
 

Comments

    Hans Kemnitz wrote on Apr 4, 2009 9:45 AM:

    " I am the person who applied for the taxi license. I was denied a license because it "may be detrimental to the current service providor". The concern was that I would put Basin Cab out of business, and then my business would fail, leaving the city without a taxi service at all. My question is this: If I am successful enough to put the other service out of business, wouldn't that mean that my business is doing well, and NOT going to fail? I was not trying to put Basin Cab out of business. I won't do it with one vehicle (as I was going to start with). I did a lot of work, surveyed business owners, managers, and employees, and it seemed there was demand for additional taxi service. I am not from Williston originally, but I am going to be here for years to come and wanted to provide the community with a service that they need. I am a community-minded, service-orientated individual wanting a chance to work for himself helping others. I was very dissappointed in the decision. I would be happy to fill in anyone on details of what I did, and what the council said. I did the research, formlated a business plan, met with Keith Olson and created projection spreadsheets, and will be happy to share this information with anyone (or everyone) to get this service started for the community. I was not looking to become subsidized, I have asked for no loans, grants, or funding of any sort from the city or state, and was spending all my expenses in local businesses. I had local insurance company, buying gas locally, servicing locally, etc. If the community got together and helped me show the council that there is a need and the community wants this service. "

    College Grad Workin back in Williston wrote on Mar 23, 2009 7:29 PM:

    " Wow, is all I can say about the cab decision! I wish I knew more details about this. Like was the cab company looking to be subsidized? If not, who cares, let the free market decide if one service is better than the other. Look how many people go to the bars in this town and as few cars that are parked there in the morning, well, another option for a ride home would be great! We've walked home fairly often because most of the time its a 45 minute wait for a cab. "

    grandma sue wrote on Mar 23, 2009 9:31 AM:

    " I understand the tax. I ask you show me exactly what you plan to do with the money the next ten years. I don't want a couple words. Give me the full details. NUMBERS!! I want to be informed before I VOTE.

    What is wrong with another cab company? HMMM? I think we only need 1 bar, 1 grocery, 1 restaurant, just one of everything. That would maintain our smallville lifestyle. "

    Tea Party wrote on Mar 20, 2009 1:57 PM:

    " The vote will show what years of socialism and taxes do to the human mind.. like Zombies they march forward repeating Taxes are good...Taxes are good...Taxes are good. Welcome to the Nanny State!

    P.S. It seems to me we had a vote this last year on the state level to reduce our taxes and it was voted down!...Go figure.. i hope our literacy levels require being able to read what the ballot says! "

    Wheres our Liberty wrote on Mar 19, 2009 5:32 PM:

    " I think one of the city commissioners who voted against it should post an explanation or the Herald should run a follow up story getting one. "

    Resident wrote on Mar 19, 2009 8:35 AM:

    " While I am sure it is true that more was said at the meeting, there were 2 city commissioners that voted for the service. I just find it suspicious that 2 of the 3 that voted against the service are local business owners. "

    time to boycott wrote on Mar 18, 2009 7:57 PM:

    " I first found out they are subsidized in a government class at the college.
    I got these #’s from the city commission monthly reports on line
    Jan 22/08 BASIN CAB CO. $600.00
    March 11 08 BASIN CAB CO. DOT Grant $2,991.00
    June 24 08 BASIN CAB CO. Grant Reimb $1,273.00
    August 12 2008 BASIN CAB CO. Grant Reimb $2,139.00
    November 25 08 BASIN CAB CO. Grant Reimb $4,388.00

    For a total of $11,391.00 Not bad for one year "

    Headward wrote on Mar 18, 2009 5:05 PM:

    " People wonder why there aren’t enough places to eat. Well ask your city commission. Most franchises require alcohol to be sold but the commission is not issuing any more alcohol licenses.

    Why wouldn't they want to encourage growth and choices? Simple answer, protect their own businesses. Look at the Economic Director. He was quoted in this paper that he "preferred a smaller town"(sic). Talk about the wolves guarding the hen house. I would recommend seeing if you can get the commissioners removed by petition and a special election.

    The oil boom is over and all Williston got was higher taxes. "

    Williston Guy wrote on Mar 18, 2009 1:57 PM:

    " In regards to the cab issue, this article makes me wonder what was said in the commission meeting. In my experience there is usually reasoning behind the decisions. The commission is responsible for maintaining public safety and welfare. I'm not sure what the reasoning was, but I'm pretty sure the whole story wasn't told in the dozen or so sentences used to sum it up. As far as conflict of interest goes, Klug recently abstained from voting on tax breaks for a new hotel coming in as a conflict of interest and Koeser has abstained from voting on various topics over his term. I was not at this particular commission meeting, but I believe that leaders with a track record should be supported. "

    Question Facts wrote on Mar 18, 2009 10:59 AM:

    " In reviewing the article I did not see where it said that Basin Cab is subsidized by the city. If this is true then why, and why couldn't it be split between the two. If it is not true one must be careful of disceminating false information that both harms the poster of the information and those it is about.
    I believe that this is a case of a law or ordinance that should not be on the books. What can a person do to get rid of it and allow business/free market enterprise to happen? It is ridiculous how many city,state and federal laws exist to protect a business. "

    local lifer wrote on Mar 17, 2009 4:51 PM:

    " This is typical of the city fathers, anti business & don't want to see any competition in the city. Another thing that bothers me is the sale tax exemption given to MT shoppers yet Mt projects recieve money from Star Fund, which if i'm not mistaken is generated tax revenue, now to me that doesn't make it bit of sense, but that's that way it is around here, unless we do a little house cleaning next election!!! "

    Steve Powell wrote on Mar 17, 2009 12:46 PM:

    " Bravo to Commissioners Bekkedahl and Bogar for trying to give a potential new business owner a chance. "

    T.R. wrote on Mar 17, 2009 8:46 AM:

    " What a better way to bring in the Obama era (Socialist Party) than to pick winners and loosers and to maintain high taxes..those who do not appreciate their essential libertys and freedoms deserve None!..and will loose them for being complacent and ignorant!....Can you feel your Republic slipping away.... "

    agree we need anther cab service wrote on Mar 16, 2009 3:35 PM:

    " time to boycott - maybe he has some "interest" in Basin Cab along with Koeser and Klug
    Maybe they have time to wait and get paid to wait where some of us don;t have the time and don't get pd to wait Im sure klug figures the longer you wait at his business the more you will spend. Guess someones life isn't that important to them. Tell me if someone has to wait to long for a ride home from the bar that they aren't going to give up and drive home when they shouldn;t "

    time to boycott wrote on Mar 12, 2009 9:38 PM:

    " I for one don’t understand how the city subsidizes basin cab and then can vote no on another cab company. And they are allowed to advertise all of their business’s using the side of the cab as billboards. Tried to get a cab twice to the airport and could not even get an answer when I called. I do know were not to shop and eat now Koeser -Kotana communications, Howard Klug -El rancho restaurant and bar, Can anybody tell me what James Lawson does for a living? "

    Wheres our Liberty wrote on Mar 12, 2009 6:16 PM:

    " It is unfortunate that the city voted against allowing a new taxi service to start. It is even more unfortunate that it is even up to the city commission to make that decision. It is not up to them (or any government) to decide "winners and losers". I guess Basin Cab can consider this their bailout. "

    David Sagaser wrote on Mar 12, 2009 5:37 PM:

    " While I no longer live in Williston I do consider it my hometown, have family there, and keep up on the news. I'm wondering if there is some REAL reason for turning down the other taxi company. It's incredible to me that a city commission can arbitrarily turn down someone who wants to start a business like that, and it just seems like there has GOT to be more to it! Does anyone know what's really going on here, or is the City Commission TRULY that 'powerful'? "

    Williston Resident wrote on Mar 12, 2009 1:52 AM:

    " These idiots need to be voted out. People like this make a box of rocks look smart. It's unbelievable they would turn down a new business in a worthless little town has absolutely nothing to offer anyone in the first place. I absolutely hate living here but have to because this is where my job is. "

    Williston resident wrote on Mar 11, 2009 11:11 PM:

    " I am disgusted with our city leaders for voting against having another cab service in town. Time to vote them OUT! This town needs some new blood on the city commission. People who aren't afraid to let Williston grow and thrive. People who aren't afraid of free enterprise. Conflict of interest on our city commission? You better believe it! You want our tax money to spend on infrastructure, then give us something in return...starting with some choices! You just denied a man a job! Shame on you! What is wrong with Basin Cab having some competition? It should be OUR choice, not just yours! "

    dont waste it wrote on Mar 11, 2009 10:55 PM:

    " when we first moved to williston, everyone talked of how if only there would be another oil boom we wouldn't waste it. well, it has been here and it is almost gone & we as a town we've almost wasted it! while other towns like minot, dickinson & bismarck have welcomed & tried to keep the people & businesses that have moved it to their communities, williston shuts or runs them out. let the man with the taxi run his business! competition is good for business & good for a town that wants to grow. we should welcome lots of new & diverse businesses & people to williston! the oil money & people won't be here for ever! DON'T WASTE THIS ONE!!!!!!!!!!!!!!! "

    FrstKnt wrote on Mar 11, 2009 7:44 PM:

    " I am also favorable to the sales tax continuing, even though I live out of town. It bothers me that I do not have a vote on the issue; however, as I work and shop in Williston, I do use the infrastructure, so it is fair that I help pay for it.

    As for the taxi issue...wow, what a terrible decision by the city commission. There are antitrust laws in this country banning monopolistic practice, yet in Williston the city commission supports it! I encourage all the residents of Williston to contact their commissioners, specifically the three who voted against this, and get it back on the agenda. This is a flat-out contradiction to the beliefs of our country, but oh so typical of the business "leaders" who also serve as the city commission in Williston. "

    exasperated wrote on Mar 11, 2009 2:25 PM:

    " Where else but Williston, ND can a new business be turned away just becuase there is already a similar service offered? Whatever happened to competition? Why is Williston so scared to have some competition? Why do you think businesses don't even try to come here anymore? "

    Williston Citizen wrote on Mar 11, 2009 2:02 PM:

    " Re: Taxi Cab Why do we have to put up with this old fashioned way of thinking? Free Enterprise should be welcomed in Williston, it is what this country is all about. One man with a cab who could potentially keep some drunk people off the road should be hearalded as necessary service. Saving one life would be worth it!!!Shame on you for not thinking of the good it would do to this town. Let the people decide. If they call him he'll get business, if they don't he won't. Competition always makes good existing business even better, otherwise they can become complacent in their service. Let the man give it a GO!!!! "

    BigRed wrote on Mar 11, 2009 1:35 PM:

    " When will this tax help our city streets? Our elementary schools? When is the sales tax for Montanans going to be lifted so we can benifit from this tax? The STAR fund has been given to organizations in the MonDak region that our not in our county or city. We help everyone else around us grow while we still have issues of our own. My property tax has gone up again, so tell me how this relieves that? These are a few of my fellings on this issue. Why should we have the highest percentage of tax in the state and very little to show for it's use. What does Williston have to say! "

    williston resident wrote on Mar 11, 2009 1:31 PM:

    " that is a good idea to continue the sales tax...but how about we review tax exempt for montana!! ;)dr5tm "

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