May 20, 2011 – The city’s proposed special revenue fund for economic development cleared a key hurdle this week. The state’s Joint Committee on Municipalities and Regional Government heard testimony about the fund, which is in the form of a home-rule petition, on Wednesday and voted for it, said state Rep. Steven Levy, R-Marlborough.
Levy, state Sen. Jamie Eldridge, Council President Arthur Vigeant and Marlborough Economic Development Corp. board chairman Arthur Bergeron all testified for the fund.
“It looks good,” said Levy, who is also a Marlborough city councilor.
The City Council late last year voted to increase the hotel tax by 2 percent, with the extra revenue earmarked for economic development. The city then filed a home-rule petition with the Legislature that would create the special revenue fund for economic development. Until the city gets the Legislature’s approval on the home-rule petition, the additional tax revenue goes into the city’s general fund.
The higher tax went into effect Jan. 1. Estimates of the annual revenue range from $375,000 to $500,000.
Levy said he would like the full Legislature to approve the petition by June 30, the end of fiscal 2011, but it could take as little as a couple of weeks.