City of Pelham to consider sales tax increase

Published 11:46 am Thursday, July 27, 2023

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By BARTON PERKINS | Staff Writer

PELHAM – The Pelham City Council will be holding a public hearing during a regular meeting on Monday, Aug. 7, to consider enacting a one-cent sales tax within the city. 

Other cities in Shelby County, such as Alabaster and Chelsea, have already made plans to enact similar sales taxes. Should Pelham choose to implement the one-cent sales tax, it will align them with its peer cities. 

The last time Pelham raised their sales tax was back in 2013 when it was raised by 1 percent and used to provide funding for education. However, Pelham has not raised taxes to pay for city infrastructure or expenses since 2001.

Currently, the sales tax within the city of Pelham is 9 percent. Five percent of this is directed towards the state and Shelby County, and one percent is allocated to Pelham City Schools. The remaining three percent is utilized in different projects throughout the city.

All local retailers would be affected by the new tax if passed. But the tax would not apply to food.

Money raised by the one-cent cent sales tax increase would be used to help fund multi-year projects that have been proposed or are currently underway. Projects that would receive funding from the sales tax include:

-County Road 52 Railroad Flyover project including the realignment of CR-52 West at US-31 and CR-52 East and widening CR52 East from US-31 to I-65. 

– Highway 261 widening project, which will increase the capacity from two lanes to five from US-31 to Bearden Rd. 

-Drainage improvements to the City’s stormwater runoff management system are recommended and informed by findings of a study of the City’s entire drainage network. 

-Addition of ambulance transport service, supplemented by the Pelham Fire Department, including the purchase of medical equipment, cardiac monitors, and personnel 

-Replacement of three fire apparatus that are approaching reserve status within the next ten years. 

-Traffic signal upgrades at all intersections, replacing in-ground loop detection with imagining and thermal detection technology (RTOP initiative) 

-Significant upgrades to the IT infrastructure, ensuring network stability and security resilience. 

-Initial site work on City-owned property known as Blueberry Hill, the site of a future 240+ acre multi-recreational and entertainment space. 

-Investments across Pelham City Park complex, including a batting cage facility, a disc golf course, concession stand improvements, and greenspace improvements. 

-A new pocket park will be incorporated into the planned development near the Pelham Public Library with the goal of creating a new community gathering spot in the city center. 

-New playground and disc golf course at Carroll Park, in addition to a walking path and parking improvements. 

-Construction of a bridge connecting the City Park complex to the Creekview neighborhood park. 

-Addition of dog park and playground replacement at Fun Go Holler Park. 

-Construction and final completion of the Pelham Greenway trail, a continuous connection between Bearden Road and Oak Mountain State Park. 

-Installation of a new Turbochiller, HVAC improvements, and parking lot construction at the Pelham Civic Complex & Ice Arena. 

-Renovations to the greens, bunkers, and golf cart path at Ballantrae Golf Club 

-Clubhouse reconfiguration at the Pelham Racquet Club 

Citizens concerned or supportive of the new sales tax increase are encouraged to attend Pelham City Council’s work session and meeting on Monday, August 7, 2023, to make their opinions known.