To The Editor:
My household attended the Infrastructure Summit put on by the Waitsfield Select Board on February 17. The panel provided updates and addressed concerns on the status of town bridges, culverts, fire station, garage, and other assets. Updates were provided on local hazard mitigation efforts and the municipal wastewater project, the latter of which will unlock the potential for additional housing in Waitsfield. The presentation clarified that our infrastructure needs are serious and growing. The combination of increases in climate-related storms (e.g., 2023 and 2024 major floods) and drastic cuts expected in federal funding for transportation and related projects, our ability to meet our infrastructure needs will require serious planning and thoughtful solutions.
With the reduction of federal and state funds for these projects, there is real risk that residents will need to foot more of the bill. A Local Option Tax (LOT) is a revenue generator used by 38 other Vermont towns that shares that burden with non-residents who visit or recreate here (and who share our infrastructure and services). A LOT is a 1% tax added to certain transactions with 75% of the revenue retained locally. Groceries, clothing, and domestic heating fuel are among those items not subject to the LOT. Revenues would be used to help finance municipal infrastructure and capital projects (e.g., infrastructure improvements and municipal wastewater operations). Based on town-specific research, a 1% LOT will produce around $600,000 annually to put towards these projects, with 82% of those dollars coming from Valley visitors. Without a LOT, this would equate to a 26% property tax increase.
A 2020 tri-town effort to implement a LOT to support economic development proved unsuccessful. Since then, the state legislature eliminated the need for a charter change to implement a LOT and increased the percentage of revenue that can be retained by towns. With these changes and increased needs, now is the right time for Waitsfield to adopt a LOT to bolster town reserves and relieve the burden on property owners for infrastructure and capital improvement needs. This approach offers a sustainable, locally-controlled funding source to maintain services, especially as federal funds shrink.
Jordan Gonda
Waitsfield
