Penny tax pursuit —City council advances sixth-penny plan
The Newcastle City Council voted Feb. 17 to continue pursuing a sixth-penny sales tax for the November general election ballot, directing Mayor Tyrel Owens to return to the Weston County commissioners with a defined list of projects and additional research on a proposed half-penny economic development tax.
The council meeting followed a commissioners meeting earlier that day, where Owens and Upton Mayor Nick Trandahl appeared together to discuss the proposal. Under Wyoming law, local option sales taxes beyond the state’s 4% rate require voter approval and coordination at the county level. A sixth-penny tax must identify specific projects and a total dollar amount on the ballot. The tax automatically expires once the approved amount is collected or the stated time period ends.
During the Feb. 17 discussion with county commissioners, Owens said Newcastle and Upton have been working together with the understanding that two incorporated towns must coordinate before formally asking the county to place the question on the ballot.
He said pursuing the tax would demonstrate “skin in the game” when applying for grants, give voters a direct say and help offset revenue reductions and increasing local government costs.
Following a positive response from the commissioners, Owens approached the council to receive a directive moving forward.
“So, I went before the board of county commissioners today and we discussed the sixth-penny tax,” Owens told the council. “The mayor of Upton, Mayor Trandahl, came and sat with me before the board of county commissioners because we wanted to provide a united front.”
Under state law, the county and two-thirds of the incorporated municipalities must coordinate to place a specific-purpose, or “sixth penny,” tax on the ballot. Owens said both councils are in favor of pursuing the special-purpose tax and were given direction from commissioners on next steps.
“We got marching orders,” Owens said. “We need to come back to the next board of county commissioners meeting and provide them with a list of projects that we want to see funded.”
Owens said Newcastle’s current focus is its capital improvements plan for water and sewer projects. The concept discussed would use sixth-penny revenue to cover the final third of street paving associated with those projects — the portion that would otherwise come from the city’s general fund.
“We’re trying to use the six-penny tax as a way to complete the paving of the road for each project,” Owens said. “So the third of the road that needs paved that would have to come out of the general fund would be funded through the sixth-penny tax.”
The goal, he said, is to ensure that when infrastructure work is complete, the entire roadway is paved rather than partially finished. Public Works Supervisor Greg Stumpff told the council that he is preparing a list of projects and associated costs.
“I’m about halfway done with it right now,” he said. “I’m looking at eight years’ worth.”
Council members acknowledged that residents want clarity before supporting any tax proposal.
“I had people come to me, you know, citizens, and say that they were not going to be for it if they didn’t know what it was going to go for,” Councilwoman Ann McColley said.
Owens responded that the sixth penny is a specific-use tax and that voters would ultimately decide.
“It’s in the citizens’ hands,” Owens said. “Once we provide them with a list and we fill out the appropriate paperwork, then it’ll go on the general election ballot in November.”
He added that public outreach will be necessary.
“We’re going to have to campaign for this one,” Owens said. “People will need to know. There’s going to have to be some public outreach.”
In addition to the sixth penny, Owens said he also presented the idea of a half-penny economic development tax to commissioners but acknowledged he was “ill equipped” to fully answer their questions.
He learned that because Upton does not wish to pursue the half-penny option, the measure would apply only within Newcastle. Commissioners advised that such a tax may require a dedicated economic development board or entity to provide fiduciary oversight of the funds.
“My homework was that I need to go and find out if we need to have an economic development board in place to provide fiduciary responsibility for the funding that we generate under that half-penny tax,” Owens said.
Owens said he will research whether an existing board or the council itself could fulfill that role and return with more information. He asked the council to authorize him to return to the commissioners’ next regularly scheduled meeting with a project list for the sixth penny and findings related to the half-penny proposal. The motion was made, seconded and approved unanimously.
Following the vote, Owens said commissioners were receptive to the towns’ efforts.
“The board of county commissioners was excited that we’re actually trying to have some skin in the game,” Owens said, adding that the effort shows legislators the city is serious about completing projects and providing local-match funding.
For a full recap of the Newcastle City Council meeting please see the Newcastle City Council minutes in the legals section of this paper or view the meeting online on the News Letter Journal’s YouTube channel.