City looks for input on LOST funds
FAIRMONT– The city of Fairmont is asking the community for potential project ideas that could be funded by the Local Option Sales Tax (LOST) that has been being collected since the ballot measure passed in 2016.
While a previous city council, in 2019, had recommitted $14 million of the funds to be used for a community center project, the Fairmont Area Community Center (FACC) Foundation in November of 2025 said that due to delays and increased costs, it would no longer be pursuing a community center project.
Acting Administrator, Paul Hoye, said, “Now that the community center project isn’t going to move forward, at least not in the vision that the FACC had, what do we do now? That’s why the council is wanting to gather input from the citizens on where they think it would be best to invest these funds.”
Hoye further said, “Ever since the LOST referendum was passed in 2016, there have been citizens that felt like their voice hadn’t been heard during that process. We will have just over $12 million in LOST funds that will be invested into the community and this is a great opportunity for citizens to let the city council know what they feel is important and help guide the future direction of Fairmont.”
Use of the funds have been set by legislation, which is fairly specific, though the language is broad.
“It’s for recreational amenities, trails and a community center,” Hoye said.
This is how it was worded on the ballot when voters passed the Local Option Sales Tax back in 2016.
“It is pretty broad so it opens it up to a lot of things that we could use the sales tax for,” Hoye said. “There are some restrictions, too, as far as what would qualify for the use of sales tax, even for recreational amenities.”
He said that it usually has to be a significant project or new construction and not for maintenance.
“There’s been some questions about the Opera House. We haven’t gotten a final word from our attorneys on whether or not that would be eligible,” Hoye said.
The city’s bond attorney, Taft, had previously been working with the city on the financing of the community center project and the related agreements that would have needed to be in place.
‘They’re familiar with the sales tax language and what will or will not be allowed for the money to be spent on,” Hoye said.
Therefore, once the city gets the list of recommended projects from the community, it will go to Taft to review to ensure they’re eligible for the sales tax to be used on. That list will then go on the city council to review and consider.
“We’re not able to put out enough information for the citizens to make a judgement of whether a project is eligible or not, so we’re really just opening it up,” Hoye said.
There is not a set deadline for the project ideas to come in. The city council had originally set a work session for Feb. 2 to discuss potential projects but at the last regular meeting on Jan. 26, the council pushed the work session back but did not yet set a date for it.
Hoye said he believes finding some uses for the LOST funds is a big priority of the council.
“They feel obligated to get something going. We’ve been collecting sales tax for awhile and not seeing much happen with it. It’s a high priority and they want to get something going,” Hoye said.
He said there will be $12 million available to spend but that the city, as per the language that passed, will continue to collect money until $15 million is raised or 25 years pass, whichever comes first.
About $3 million of the $15 million has already been spent on either the ice compressors at the Martin County Arena, some on the design for the proposed community center and ice arena and some was spent on the boat landing and parking lot at Amber Lake Park.
“Of the $15 million, there’s going to be $12 million left, but we haven’t collected the full $15 million yet. We’re still collecting it,” Hoye explained.
The city is aware of another survey circulating throughout the community that has been put out by a private party of citizens.
Hoye could not speak for the council but said he believes the council may consider the survey and try to incorporate it into the process it’s going through.
The council is expected to discuss potential project ideas at a work session in the near future, likely sometime in March. Anyone with project ideas can email city clerk, Betsy Steuber, at bsteuber@fairmont.org.

