February 24, 2011 – Mayor Jim Suttle will be in Lincoln today testifying in favor of Omaha Senator Heath Mello’s bill, which returns sales tax revenues collected by the state to the community sewer revenue funds of Omaha and Plattsmouth, as well as Pottawattamie Sarpy and Douglas County. These municipalities currently share the financial burden of a CSO (combined sewer overflow) program which is an unfunded mandate by the federal government.
“Although we will continue to vigorously pursue federal funding assistance, significant sewer rate increases will be necessary to fund the design and construction of the various infrastructure improvements without some type of relief,” said Mayor Suttle. “These increased sewer fees are creating a burden on all of our regional ratepayers, residential and commercial. Without assistance in offsetting these costs we could see serious negative impacts on our city’s economy.”
The sales taxes charged to metro Omaha ratepayers will soar over time, tripling between 2011 and 2017 without the adoption of LB 682. “These tax revenues are not part of the state’s revenue projection and would be a state windfall at the expense of already burdened Omaha area wastewater customers,” said Marty Grate, City of Omaha Environmental Services Manager. “The intent of LB 682 is to turn back the sales tax CSO capital improvements in 2013 to ensure that there is no erosion of the tax base, provide opportunities for revenue-neutral assistance across the state, and allow all Omaha customers to benefit.”
LB 682 goes before the Legislature’s Revenue Committee this afternoon at 1:30 in the State Capitol, Room 1524.
