Q: Why do CIS costs trend lower with more home rule sales tax revenue?
With a higher sales tax rate, more revenue is collected per transaction. For example, a 1% home rule sales tax could provide $3.5 million in additional, annual revenue for mandated improvements, while a 1.5% home rule sales tax could generate more than the minimum $4.5 million in additional, annual revenue needed.
Under home rule, both CIS fees and home rule sales tax revenue would go towards mandated wastewater improvements. As more sales tax revenue is earned and can be directed to the Water/Sewer Capital Projects Fund, less revenue is needed from CIS fees.
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