Cedar Rapids City Council Approves LOST Resolution

Today, the Cedar Rapids City Council unanimously approved a resolution to ask voters whether a 1 percent local option sales and services tax (LOST) should be applied in Cedar Rapids for a period of approximately five years. The City Council stated that revenues from the tax shall be allocated as follows:

• 10 percent for property tax relief; and
• 90 percent for the acquisition and rehabilitation of flood damaged housing caused by the flood of 2008, and matching funds for federal flood dollars to assist with flood recovery or flood protection

“We encourage the entire community to support this tax and help their fellow residents who were devastated by the 2008 flood,” said Council Member Justin Shields. Mayor Pro Tempore Brian Fagan added, “As we responded to the flood disaster with dignity, determination and discipline, so must we respond during flood recovery as a compassionate community willing to help our fellow residents.”  

During today’s special City Council session, City Manager Jim Prosser described the large funding gap the City is experiencing after eight months of flood recovery efforts. “So far, the City of Cedar Rapids has only received $38 million in Community Development Block Grant funds. In comparison, ten years ago the City of Grand Forks, ND received $135 million from the federal government within 90 days of its devastating flood,” said Mr. Prosser.  

Mr. Prosser outlined several funding gaps for housing and public facilities recovery and flood control measures. He said the City needs $300 million to cover the costs of property acquisition, replacement housing needs and rehabilitation of flood-damaged houses; $800 million to $1 billion for a permanent system of floodwalls and levees; and up to $50 million for an interim flood protection plan. The cost to repair and replace all 310 flood-impacted City facilities is unknown at this time. 

The 1 percent local option sales and services tax will be submitted to the registered voters of the incorporated and unincorporated areas of Linn County at a special election to be held on March 3, 2009 as provided for by law. If passed, the tax will commence on April 1, 2009.

CORRIDOR RECOVERY SPONSORS: