Voters approved Arlington sales tax raise. Now, it’s time to figure out how to use it.
With Arlington voters poised to approve a sales tax increase to fund an Economic Development Corporation, it’s time for city officials to consider the new group’s strategy and appointees, City Manager Trey Yelverton told City Council members Tuesday.
Though local election results have not been finalized, ballots in favor of raising the city’s sales tax rate a quarter of a cent to 8.25% received 55.15% approval from voters in the Nov. 3 general election, or 72,959 votes, according to the Tarrant County website.
If passed, Yelverton said, the raise will likely go into effect in April, and the city will start receiving revenue from the increase in June.
“There’s a lot of groundwork we can do,” he told the Council, between finalizing election results and receiving the funds.
The Council created the Economic Development Corporation in 2015 but did not receive funding. The corporation must have seven appointed board members and bylaws. Yelverton recommended board appointees have experience in fields such as development and finance. The board will field and recommend projects that will create higher-paying jobs, attract new businesses and support existing ones.
Mayor Jeff Williams said the City Council may also consider creating additional groups to consult with the board. However, the group’s expertise should establish credibility and trust from the community, he added.
“The best Economic Development Corporation and Council works such that the EDC has the trust of the community,” he said during the meeting. “They are established business leaders in different fields that, when they come forward, you’ll know it’s gonna be a great proposal.”
Under state law, the corporation must consist of seven appointed members, three of whom cannot be city employees or Council members. Corporation board members would serve two-year terms and receive specific training every two years. Meetings for the group will be open record and public hearings will be mandatory for projects.
The sales tax increase for the corporation places Arlington’s rate at the highest allowed under state law. Arlington currently allocates 1 cent of sales tax revenue for its general fund, half a cent for city sports and community venues and a quarter cent for street maintenance.
The tax is expected to bring in $17.2 million, based on 2019 street maintenance sales tax revenue. The increase is projected to cost taxpayers an extra $1.50 per month, or $15 per year.
