Politics & Government
Hoover Mayor Proposes Sales, Lodging Tax Increase
Facing a budget crisis, Hoover mayor Frank Bocato is proposing a tax increase to offset a possible $2.8 million deficit.
HOOVER, AL - Hoover mayor Frank Bocato is proposing a sales and lodging tax increase to offset a looming budget crisis for the city.
The City of Hoover could finish the 2018 fiscal year in some serious debt, according to a financial consultant hired by the city. The council heard a report in April from Jim White, a consultant with Birmingham's Porter, White & Co., and learned the city could be facing a $2.8 million deficit by the end of the fiscal year.
According to a report by the Birmingham Business Journal, Brocato proposed the city raise its sales and use tax components and lease/rental tax rates to 4 percent — the same level as Homewood and Vestavia Hills — and increase the city's lodging tax rate to 6 percent. The move is estimated to generate approximately $20 million in additional revenue for the city. Brocato is proposing the Hoover City Council vote on the measure July 2.
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Vestavia Hills approved its tax increase in April, with projected revenues from the increases to be about $3.9 million, $187,000 and $45,000 for the sales, lodging and leasing taxes, respectively.
Brocato is looking to increase the city's support for Hoover City Schools to $4 million every year for a total of $11.1 million. To provide better traffic management, he is asking for $22 million to match federal and state funds to build a new interchange on I-459 to serve western Hoover and make improvements to the Hwy 150 exit. He is also proposing $22.3 million to build a a facility for the fine and performing arts with an additional $1 million per year to operate it, as well as $1.7 million for a new library branch in east Hoover with an additional $700,000 per year to operate it. The city is also looking to fund $500,000 per year to implement bicycle and pedestrian infrastructure in phases.
Find out what's happening in Hooverfor free with the latest updates from Patch.
Brocato said he is not in support of an occupational tax and he wants to leave any increase in property taxes to a future date when Hoover City Schools is ready to pursue legislation on the matter.
Photo by Michael Seale/Patch
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