Helena Considers Sales Tax Increase

The city of Helena is looking into a proposed 1% sales tax increase, which is expected to bring in about $2 million annually. This idea was a key point at a recent Helena City Council meeting.

Councilman Andy Healy, as reported by WBRC, acknowledged that raising taxes isn’t something anyone particularly wants. He made this clear during his remarks to the media.

During a prior work session, Councillor Chris Willis introduced the proposal. He and other city officials described the increase as a necessary measure to address the city’s rapid growth and to ensure essential services continue running smoothly.

Helena, one of the fastest-growing cities in Shelby County, has been operating with fewer resources than many of its neighboring areas. City officials are arguing that raising the sales tax from 9% to 10% would align Helena’s budget more closely with other nearby communities.

The consideration for this tax hike comes on the heels of an audit revealing that Helena exceeded its budget by over $11 million last fiscal year. The city ended the year facing a substantial deficit, particularly struggling with overspending in key areas like substantial capital projects, including new city halls and sports complexes.

If the proposal goes through, 25% of the new sales tax revenue would be set aside for bond payments associated with these city projects. There would also be additional allocations to the Capital Project Fund.

This topic has sparked a lot of conversations among residents, especially since they were assured these projects wouldn’t involve extra costs. In light of this, some council members have decided to earmark bond funds specifically to address these concerns.

Healy expressed a viewpoint that perhaps they may have rushed into decisions without fully comprehending the implications. He suggested that an additional $500,000 from the proposed tax would be directly directed toward bond payments.

The city council plans to discuss the tax increase further and hold votes on related matters in their upcoming meeting.