WATERLOO - City officials are discussing whether to expand uses for the 1 percent local option sales when it comes up for renewal.

But City Council members in Waterloo, where the "penny" tax has funded street repairs since its adoption by voters in 1991, were wary of tinkering with the tax too much.

"As you add more stuff to it, the less likely it's going to pass," said Councilman Bob Greenwood.

Voters throughout Black Hawk County are expected to be asked Nov. 3 - at the same time they head to the polls to elect mayors and council representatives - to consider renewing the local option tax for up to seven more years.

The current tax, which is on top of the 6 percent state sales tax charged for goods and services, will expire at the end of 2010 unless voters approve its extension. Holding the renewal vote during municipal election saves on the cost of having a separate option tax election in the future.

Since the option tax was narrowly approved in 1991 it has been renewed by voters across the county every five years. But mayors this time are pushing for a seven-year extension.

In Waterloo and Cedar Falls the tax had been used entirely for the repair and replacement of existing streets and easily passed muster with voters when it was renewed for the same purpose in 1995 and 2000 for additional five-year periods. A midterm proposal to split the tax in Waterloo between street repairs and downtown improvements failed.

But Waterloo rolled the dice with the popular program in 2005, asking voters to approve a change allowing some of the tax revenue to be used for the construction of new streets but only when the funds were matching a state or federal grant for the same project. Voters responded with 86 percent approval for the change in renewing the tax through 2010.

This time, Mayor Tim Hurley has proposed allowing the tax to be used to "improve" existing streets, which would allow widening, adding turning lanes or other improvements to streets. He also proposed removing "state and federal" from the requirement for a grant match, noting the Black Hawk County Gaming Association or another source could also supply funds for a street.

Hurley said he wanted to avoid "the risk of going too far astray and alienating our electorate."

Councilman Harold Getty was already alienated, while Councilman Quentin Hart said he would prefer keeping the renewal to five years.

Getty said he would rather eliminate the city's ability to use the tax for any new streets, going back to the original program of only reconstructing or putting asphalt overlays on crumbling city thoroughfares.

"But now we're going to nibble a little bit more out of it," he said.

Other council members supported the proposed changes but wanted more time to mull them over, voting unanimously Monday to table adoption of the ballot language until next week's meeting.

City Engineer Eric Thorson noted the tax generated about $9 million last year and more than $128 million since its inception. About half of the city's 429 miles of paved streets have been reconstructed or overlaid with those dollars, although some of the early asphalt overlays are approaching the end of their lifespan.

The Cedar Falls City Council approved a resolution Monday in support of a referendum on continuing the option tax for seven more years. The city added language that would allow option tax funds to be used for reconstruction or repair of bridges and traffic signals in conjunction with an allowable street project.

Mayor Jon Crews has found people are comfortable with the option tax as they've driven on the results.

"I think it's worked well and people have accepted it," Crews said. "It's been voted on four times and citizens have overwhelmingly approved it, so it would save time and expenses to extend it to seven years."

Based on resolutions passed by various city councils, the Black Hawk County Board of Supervisors will be asked to set the election date. Board chairman Frank Magsamen expects the issue will be on the Aug. 11 board agenda for discussion, at which time the supervisors also must decide what ballot language to put before rural voters, who now split the money between road repairs and property tax relief.

"We would have to look at it stongly before we would feel like we'd have it change," Magsamen said.

Courier Staff Writer Jon Ericson contributed to this report.