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.