Cedar Rapids council again directs LOST funds to library project

Without comment as part of this week's City Council consent agenda, the council again agreed to direct the same $4 million from the city's local-option sales tax (LOST) pot to the city's $49-million library project.

Back in January, the council announced its intention to use $4 million in LOST revenue to help with the purchase of the library site across Fourth Avenue SE from Greene Square Park.

Mayor Ron Corbett on Wednesday said Tuesday's vote on the LOST funds for the library was a technical one to direct the funds to the general budget of the library project. To expedite the site purchase, the city earlier used state and federal funds, the mayor said.

The city is collecting the 1-percent LOST for 63 months through June 30, 2014. By then, the tax is expected to bring in at least $80 million for flood-related expenses. Some of what has been spent of LOST funds to date has been for renovation of flood-damaged housing with some purchases of flood-damaged housing. More than $20 million of the LOST funds has gone to flood victims to replace personal possessions lost in the June 2008 flood. Homeowners qualified for up to $10,000 grants and renters up to $4,000 grants.

Back in January, the council also said it would look to use LOST funds to help with the purchase of land for a new central fire station and new animal shelter.

Corbett on Wednesday said the council also might use $1 million or so of the funds to cover the city's costs in the $10-million renovation of the former federal courthouse into the city's new City Hall.

The ballot language approved by voters to put the LOST into effect in 2009 allows for the city to use LOST funds to match federal dollars coming to the city for flood recovery and flood protection.

"Instead of raising property taxes and paying off bonds over 20 years, we're using local-option money," the mayor said of the use of some of the funds for flood-recovery building projects.