The Paving for Progress program – a one percent local option sales tax generated by Cedar Rapids residents and visitors – is set to appear on the November ballot after garnering support for renewal from the Cedar Rapids City Council on July 13.
Cedar Rapids enacted the sales tax in 2014 mainly to fund the upkeep and construction of public streets and to provide about $20 million annually for road repairs. Unless otherwise renewed, the program expires on June 30, 2024.
“It’s important to get this on the ballot now because we plan for these projects, sometimes years out,” said Brad Hart, Cedar Rapids mayor. “So, we need to know that we’ll have the funding that we’ve had in the last eight years going forward after the ten years.”
As of 2020, approximately $122 million was invested into local roads accounting for more than 60 linear miles of roadway improvement. In less than three years, 66% of Cedar Rapids citizens will be within walking distance of a completed project.
According to Cedar Rapids Council Member Scott Olson, the sales tax funds many projects that would not otherwise have been possible, such as residential neighborhood areas that have not received the necessary funds historically.
“The good news about Paving for Progress is that we’ve met all of the goals that were set forth,” said Mr. Olson before explaining that the money committed eight years ago was spent in the right spots. “And secondly, we don’t borrow any more. There are no interest payments. Everything is paid for with cash, and every dime that comes in from the gas tax and Paving for Progress is put into the streets as quickly as possible.
The bad news is that we still have hundreds of millions of dollars worth of deferred street maintenance,” Mr. Olson added. “That’s why Paving for Progress is so important to the city. If we can do this for another ten [years] beyond the current ten [years], we’re not going to get quite there, but we’re getting a lot closer.”
Eliminating the sales tax runs the risk of allowing local infrastructure to deteriorate once again. The city expects there will be around 58 fewer miles of road in ‘fair or better condition’ in 2030 compared to the program’s current completion date if funding does not progress past 2024. That figure rises to around 96 miles just five years later in 2035 if the funding vote fails.
“This program builds sound infrastructure, creates jobs, and is a critical revenue source for our city,” said Ron Corbett, vice president of economic development with the Cedar Rapids Metro Economic Alliance and a major proponent for the sales tax. Mr. Corbett is responsible for raising money with the Economic Alliance and leading the sales tax marketing initiatives.
Paving for Progress supporters agree the program is vital in ensuring every day; short-term traffic roadblocks are fixed promptly. At the same time, long-term priorities (a robust floodwall system, for example) are appropriately budgeted for in advance. The program works to invest in roads before the roads are in poor condition, if possible, to eliminate costly repairs down the line.
“The most important thing is this program makes our streets safer,” said Mr. Corbett. “Citizens have always placed street improvements a top priority, and a sales tax is always more popular than alternative revenue generators.”
