Walton will be implementing a new payroll tax to raise funds for its nearly at-capacity sewer system.
At a meeting Tuesday evening, city council approved a 2% payroll tax for all individuals working in Walton. The new tax is anticipated to generate about $2.5 million annually.
The council had decided at its Nov. 12 meeting to table voting until more information was available to the public.
The funds from the tax will be used for much-needed improvements to Walton’s sewer system, which operates at nearly 80% capacity. The system has been under moratorium, and no new homes or businesses can be connected to the system, stunting any further growth and development in the city.
With the revenue generated by the payroll tax, the city plans to move forward with a short-term solution to expand the sewer system’s capacity by constructing another holding tank at the current treatment plant. According to city engineer Matt Bogen, the new tank would add about 200,000 gallons to the city’s current capacity of about 750,000 gallons. The project would take $5 million and four to six months to complete.
While the new holding tank would serve as an interim solution in the short term, plans are still underway to build an entirely new treatment plant at an alternative location in the long term. According to Bogen, the city has started looking for new sites to construct a treatment plant and has begun having conversations with property owners. The anticipated cost to expand the sewer system is estimated to be about $20 million.
According to Mayor Terri Courtney, more than 90% of those working in Walton don’t live in the city. Implementing the payroll tax, she said, will, therefore, help pay off the cost of the expansion with as little impact on Walton residents as possible.
It is unclear when exactly the new payroll tax will go into effect, but according to Courtney and city attorney Michael Duncan, it could be between June 2025 and January 2026.