Northport First Funds
On August 19, 2019, the Northport City Council voted to approve a One-Cent Sales/Use Tax increase. The money collected from the additional One-Cent Sales/Use Tax will be used for future projects. The four categories or "buckets" that the tax can be used for are:
The Enjoyment category is meant to address the outdoor activity element of city living. A maximum of 30% allocation of the $.01 yearly sales revenue increase is deposited into the Enjoyment Bucket. A maximum category balance of unused funds can never exceed 10% of the total budget. Excess is directed to other categories first then to the city reserve fund.
Permissible outdoor activity elements are:
- Outdoor recreational areas are inclusive of parks, sporting fields/venues, nature parks/trails, green spaces, bike paths, etc.
- Cost of cooperative agreements with outside agencies can be included
- Cost of acquiring/leasing property for the sole purpose of items listed above
- Extraordinary maintenance items arising from specialty nature of an outdoor activity element can be considered
- Relocation of historic/civic structure to an area designated for outdoor activity can be considered
The Renew/Recycle/Rejuvenate category is meant to address the changing face of our city due to growth. A maximum of 30% allocation of the $.01 yearly sales revenue increase is deposited into this bucket. A maximum category balance of unused funds can never exceed 10% of the total budget. Excess is directed to other categories first then to the city reserve fund.
Permissible Renew/Recycle/Rejuvenate elements are:
- Renovation and/or Remodel of City-owned assets that are commonly used for indoor recreational activities (ie., Community Center).
- Programs aimed at facade improvements of older buildings
- Programs aimed at preserving items of historical value to the City of Northport
- Recycle, waste reduction, energy reduction activities that reduce Northport's carbon footprint - both municipality and community. This includes cost of equipment and manpower for those specific projects.
- Blight removal, Community cleanup programs
The Identity category is meant to promote consideration of ideas that create/improve a Northport identity - either immediately or in the future. A maximum of 30% allocation of the $.01 yearly sales revenue increase is deposited into the Identity bucket. A maximum category balance of unused funds can never exceed 10% of the total budget. Excess is directed to other categories first then to the city reserve.
Permissible Identity elements are:
- Streetscape projects that promote a more livable atmosphere
- Programs similar to Arbor Day that promote the replanting of trees
- Installation/repair of city sidewalks along with natural walking areas
- Purchase of property in the main Riverfront District to accelerate the creation of a downtown effect
- Signage/advertisement promoting the City of Northport
The Responsible category is meant to address specific shortfalls in budget areas. There is no limit on the amount of the $.01 yearly sales revenue increase for the Responsible bucket.
Permissible Responsible elements are:
- Debt Service - permissible to use funds to accelerate repayment of existing obligations in order to free up future monies and/or decrease interest. This covers internal or external debt.
- City Reserves - as long as the city reserve is either below the mandated levels or city goals, monies can be used to increase city reserves to those mandated levels.
- Specific infrastructure - a minimum of 1.0 to 1.0 match of gas tax generated road paving budget. In the event of unusual even or circumstances, a maximum of 2.0 to 1.0 match of gas tax can be added to the road paving budget.
- In the event of a drastic change in revenue generation, ie. economic downturn, funds can be used to maintain critical city functions and operations.
1% Sales Tax Allocation Proposal - FY 2020 - The 1% Sales Tax that was approved for FY 2020 was presented at the October 5, 2020 Council meeting. The proposal was presented as a resolution accepting a 1% Sales Tax Report that defines how the extra tax revenue was allocated this year. Please visit https://files.cityofnorthport.org/media/7983157_1-sales-tax-report--9142020.pdf?1600194909 to view the presentation.
Revised 1% Sales Tax Presentation for FY 2021 - At the September 14, 2020 Council meeting, a revised ordinance for the 1% Sales Tax Revenue Usages was presented to Council. This revision applies only for the Fiscal Year 2021. The old 4 bucket ordinance applies to the Fiscal Year 2020. The revised ordinance and Exhibit "A" are available for download for citizens to review. The final reading was held on October 5, 2020.