(EDITORIAL)
Tuesday, November
14, City of Alexander voters are being asked to decide the fate of a
one-cent increase to the city’s sales tax. The current city sales
tax is two-cents, which was approved in two separate referendums in
the early 2000s.
The main argument
being given for the increase is the limits that were placed on the
current two-cent tax. The referendum for the first one-cent tax
limited it to spending for the fire department. The second referendum
required that tax to be divided with one-eight of a cent going to the
fire department, two-eighths going to parks and recreation and
five-eighths going to the police department. The increase being asked
for now will go to the general fund, which will allow it to be spent
for any city purpose.
Since those two
elections the City of Alexander nearly tripled in size with the
annexation of Woodland Hills in 2006. Unfortunately, Woodland Hills
did not provide enough businesses collecting sales tax to offset the
increase in population and territory. In other words, the needs of
the city increased without a proportionate increase in sales tax
revenue.
Since the annexation
three businesses have moved into Alexander. The most visible is the
Dollar General Store on Highway 111 next to the post office. The
corner of First and Main streets, behind Hess, has had two
businesses. The first was Royal Communications. Currently Haynes
Equipment is occupying that spot.
Obviously those two
additional businesses won’t make up for the additional needs of the
city. And now we will have hundreds of homes in the new Meadow’s
Edge subdivision, which needs police protection and the possibility
of fire protection as well.
During recent city
council meetings Mayor Paul Mitchell has given several reasons for
the need of an additional one-cent sales tax. The one reason that
will be constant is being able to use the general fund to help
off-set revenue short-falls in the other funds, especially police and
fire.
In 2016 one-cent of
sales tax generated approximately $432,225. As a comparison, in 2016
revenue sources dedicated to the general fund generated around
$300,000.
The one issue
residents seem to agree is needed is an animal control department.
That requires a trained professional staff to capture and care for
the animals, vehicles, a building, and perhaps contracting with a
veterinarian to provide medical services. All that requires a
permanent funding source.
Another issue on the
wish-list of residents is the cleaning of property that’s not being
maintained by the owner, or that’s been abandoned. As Mayor
Mitchell has explained, at more than one council meeting, going
through the legal requirements, then cleaning the property and
finally filing a lien on the property so the city gets repaid,
“Requires money.”
There are other
issues that require funding. One that’s mandatory is paying off a
loan on the purchase and improvements to city hall. In 2005 the city
took out two loans from the United States Department of Agriculture.
The first loan was used to purchase what was the post office building
and property for $364,000. The second loan of $56,000 funded
improvements including the addition of the courtroom and a new roof.
According to Mitchell the city has only made payments on the interest
and nothing on the $420,000 principal. That is one financial issue he
wants to dispose of as quickly as possible.
Mitchell says there
are other uses for the additional sales tax; fixing the city’s
flooding problem for one. Other items on his wish-list include
sidewalks city-wide, street lights on all streets, repairing and
repaving all streets, a back-up generator for city hall, and
repairing the Central Firehouse on South Alexander Road for starters.
The building needs a retention wall to stop dirt from eroding, which
has been an on-going problem for years.
There has already
been one comment made suggesting an alternative to a sales tax
increase, revenue from building permits. This is not a good
alternative. First off, building permit fees should be used to fund
building inspections and other city planning spending. Second,
building permit fees are not a constant reliable source of revenue,
especially in the case of Alexander. Unlike other cities Alexander is
land-locked and can only develop the remaining land inside the
current city limits. No more annexations for Alexander. Eventually,
the revenue from building permit fees will drop and then what do you
do with the permanent service you’ve been funding?
Mitchell and the
city council have already made-good on one promise. In September the
council approved a reduction in the city property tax from five-mils
to three-mils. The lower tax rate will affect your next tax bill.
It’s Mitchell’s goal to eventually reduce Alexander’s property
tax rate to 1.9-mills, the same as Bryant’s. Bryant also has a
three-cent sales tax.
As Mayor Mitchell
has said the sales tax will be paid for by anyone who spends money in
Alexander, not just Alexander residents. The Citgo station at the
I-30 interchange is in Alexander. Any gas or store items purchased by
someone getting off the interstate will pay the city sales tax.
Shannon Hills residents are now driving through Alexander past Hess,
the Dollar General Store and Citgo. More sales tax potential there as
well.
I’m voting for the
sales tax increase. What are you going to do? Leave your comments
below.
The Special Election
is this Tuesday, November 14 from 7:30 AM to 7:30 PM. Voters in the
Pulaski County portion of Alexander will vote at First Missionary
Baptist, 10300 Mabelvale West, Little Rock. Alexander voters in
Saline County will cast their ballots at the Pathfinder Human
Resources Building 12B, Highway 111 South. The building is at the
south end of the closed Human Development Center, near the end of
Highway 111.
