Carson City supervisors on Thursday declared their intention to take out a $15 million bond for the Virginia & Truckee Railway, and to implement an eighth-of-a-cent sales tax hike to fund it.
The resolution is the first step in a long process to approve the proposed sales tax and issue general obligation bonds. City Manager Linda Ritter said there will be several chances for public comment, before supervisors make a final decision.
It's estimated the eighth-cent tax, which would bring sales tax from 7 percent to 7.125 percent, would generate additional annual revenue of about $1.25 million.
Payments on the extra $15 million debt would be around $1.14 million per year from 2007 to 2026, for a cost of more than $23 million by the time it's paid off.
The 18-mile recreated historic railway running from Virginia City to Carson City is expected to cost about $30 million and open in 2009.
Storey County already collects a sales tax that has provided about $1 million for the project and a portion of Carson City's room tax is funding a $4 million bond.
The city could finalize the new tax as soon as mid-September, and issue the bonds in four to six months. According to Ritter, if the tax isn't approved, the city won't seek the bonds.
Comments
Use the comment form below to begin a discussion about this content.
Sign in to comment