Council decides not to raise grocery sales tax rate

By SOLOMON CRENSHAW JR.

The Mountain Brook City Council chose last month to “miss the boat,” passing on an opportunity to increase its sales tax on groceries before they’re locked into their current rate by Gov. Kay Ivey.

In a special council meeting on June 8, Assistant City Manager Steve Boone explained that the state Legislature accomplished its mission to reduce the state sales tax on groceries. Legislators also tacked on a provision that restricts cities at whatever rate they currently tax groceries.

Other cities in Jefferson County tax groceries at 10% with 4% of that going to the municipality. Mountain Brook taxes groceries at 9% because it has stuck with the 3% it started getting in 1995.

After a lengthy discussion on the one matter on the agenda, the council chose to pass on changing its tax rate.

City Manager Sam Gaston said Boone listed some projects that the city has on the table.

“Not saying we're gonna do them all, but we would take our capital projects fund down from like $28 million to about $14 million if we do all those,” Gaston said. “That $14 million includes money that we have in reserve for replacing equipment, etc. We've got a 6-month reserve in our general fund, which is very good, but this is for your big capital projects, buying equipment, replacing equipment, etc.”

The legislation was to have taken effect on Sept. 1, but what passed in the just concluded session will become law with the governor’s signature.

Gaston said the city has put a lot of money into needed athletic improvements and drainage improvements during the past two years. There are still several projects on the table, including bridge work that’s 80% federally funded, sidewalk projects that are mostly 80% federally funded and roundabout projects that are 80% federally funded.

“But we've got to possibly build another fire station, and the estimates are between $8 million and $10 million,” he said. “That's a lot of money for a new building. We do have some things on the horizon that we're gonna have to deal with as far as capital improvements.”

Gaston said Mountain Brook will have to examine some of its capital projects in the future.

“We have spent a good bit of money that was needed on capital improvements over the last three, four years,” the city manager said. “We've got some plans like Jemison Park and in the Tot Lot and some drainage projects. But those are things that are needed for the benefit of the community and the quality of life. But after some of these are over, we will have to be much more selective in capital projects that are absolutely necessary.”