PEA RIDGE – The need for extra cash to meet the growing demands of a growing population has led city guides to debate voters’ demand for a one cent sales tax.
Pea Ridge voters approved the current city sales tax of 1% in 1984.
The issue has been scrutinized by city officials for years and discussed at the February city council meeting with Kevin Faught, senior vice president of Stephens Public Finance. The information was re-presented to city officials in March at both a city council meeting and a full committee meeting.
Several other cities in Benton County have sales tax, with both Rogers and Bentonville charging 2%.
The two questions city officials would like to ask voters are to apply for a $ 5.8 million bond for road repairs and projects, and a one-cent sales tax to pay back the bond and cover the As required by the police and fire brigade.
“The last time Kevin was here,” Mayor Jackie Crabtree said, “we talked about allocating a quarter of the tax revenue … it wouldn’t be enough to cover the $ 5.8 million, so we’d have to use full 1. ” Penny as cover. A quarter would pay bond payments, but 1 cent would cover that, must have that much cover. “
City clerk Sandy Button said that if the bail is paid, the proceeds will be split in three ways between the street, the police and the fire department.
Button told city officials that if the bond is approved but sales tax is not, the issue would be controversial as there would be no collateral for the bonds.
It will be difficult to do big road projects “like we have to do when we have to wait for the money to come in,” said Button.
“It’s like getting all of their money upfront,” Button said, explaining that the loan gives the Department of Roads the money it needs for projects.
Jesse Fryer (who ran for council last November), who was in the audience, asked, “To get the voters on board, we thought about equalizing the amount of money … that goes to different places. I sit in between those two men (police chief Lynn Hahn and fire chief Jack Wassman) who will benefit from it.
“Last time I checked … I have a feeling that if you can find some way to make up for this in any way, you will win voter support,” Fryer said, explaining that he believed That the money should be better balanced The fire brigade and the police have offset the allocation of the sales tax from 1984. “Will also give the city a level playing field to say that we support the fire brigade so that they can really, really get under their feet.”
“I think that would go that far with voters personally,” Fryer said, and said when he stood for election last fall, he heard voters say they didn’t think city officials would invest in the fire department.
Councilor Merrill White said the proposal would split the money equally between police and fire departments.
Fryer said the number shouldn’t be the same to make up for the previous assignment.
“Ultimately, that was what the voters brought into play back then,” White said, citing the 1984 city sales tax. “We can’t change what happened in 1984, but we can certainly change that we move forward.”
“I heard the exact same thing from a single person who called me,” said Councilor Ginger Larsen. “It’s a relevant issue. I think it doesn’t make sense to me to put something in front of the people they don’t vote for. If you don’t get it right, they won’t make it.”
“I took five calls today … with exactly the same concern … they would feel better if the police and fire were more evenly and evenly distributed. They want them to be the same overall, including the old sales tax,” said Larsen.
“If we leave it that way (the 1984 tax levy) there is nothing that says we can’t adjust their budgets,” said Councilor Cody Keene.
“It’s easy to digest as it is written,” said prosecutor Shane Perry.
“You have to be able to understand it. It’s very complicated,” said Larsen. “I would like some public feedback on the way it is written. No matter how much you teach, I worry that we are investing time and money and it will be wasted. I have not received good feedback.”
“Are we good at having him bring us a prescription?” Asked Crabtree.
Keene moved a regulation to be drawn up to request the vote. White agreed to the motion.
White and Keene voted for the motion; Larsen voted against. Councilor Steve Guthrie was absent.
Larsen said after the meeting that she believed she needed more feedback from the city’s voters. “I wanted them to wait for us to have public feedback as we didn’t have any information to share. I didn’t.” I don’t feel comfortable voting without all of the information out there. “
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In addition to a portion of the county sales tax revenue as needed and impact fees, each of the departments generates revenue from multiple sources including:
Fire Department.
• City sales tax *
^^ 5% to fire
^^ 7% to the ambulance
• light taxes
• EMS billing
• County EMS
• Football standby
Police Headquarters.
• City sales tax * 24%
• Percentage of fines received
• SRO salary from the school
Street department
• Property tax
• City sales tax * 40%
• State turnback
* Percentage of revenue from current 1-cent city sales tax (approved in 1984)