On Tuesday November
14, City of Alexander voters will be asked to approve a one-cent hike
in the city sales and use tax for the general fund. Adding one-cent
will increase the city’s local tax from two-cents to three, equal
to the City of Bryant. If approved, collection of the new tax will
begin January 1, 2018.
During his
presentation to council members at the council’s August 21 meeting,
Mayor Paul Mitchell repeated many of the comments he made at the
April meeting when the topic was first discussed. Mitchell said he
wants to be able to provide the services residents have requested for
several years; animal control, clean-up vacant lots and solving the
city’s drainage problems among others. He also reminded council
members about the loan on city hall, with interest alone totaling
$300,000.
Then there’s the
audit for 2014 and 2015, released earlier this year. According to the
audit for 2014 $46,654 of, “restricted monies were paid from the
Parks and Recreation Fund to the General Fund.” Also, the audit
states the Police Department Fund did not receive all of its
five-eighths-cent sales tax revenue in 2014 in the amount of $42,617.
All of this occurred while Michell Hobbs was mayor. Changes are
being made where possible so the general fund can repay the two
accounts.
Mitchell also
addressed the issue of acquiring grants for city projects. He
explained that many grants require matching dollars, or property in
lieu of funds, neither of which the city has. And, unless someone in
Alexander is an expert at writing grants, hiring a grant writer
costs.
“The money (to pay
for that) has to come from somewhere,” he said.
The current two-cent
sales tax was approved by voters in two special elections. The first
referendum levied a one-cent tax to be given to the fire department.
Voters then approved a second referendum which divided a one-cent
sales tax among the fire department, police department, and parks and
recreation. Of the second one-cent tax the fire department receives
one-eighth-cent, the police department five-eighths and parks and
recreation two-eighths. The one-cent sales tax being proposed now
will go to the general fund allowing it to be used for any purpose in
the city. Both previous referendums were held prior to the Woodland
Hills annexation in 2006.
The final 2016
budget shows revenue to the general fund at $300,000. That includes
property tax collections and the city’s share of the state sales
tax, among others. In 2016 one-cent of sales tax in Alexander
generated $432,225.
Mitchell repeated
his aversion to increasing taxes. However, he said to make the
improvements needed to attract both new businesses and residents,
“That takes money.”
Mitchell estimates
the cost of the election at around $14,000. With a one-cent sales tax
generating approximately $36,000 per month he expects the new tax
will pay for the election the first month.
Mitchell reminded
council members this sales tax will not just be paid by Alexander
residents. He said anyone from outside the city, or driving on the
interstate, who makes purchases in Alexander will also be paying the
three cents; the same as Alexander residents who shop in Bryant pay
Bryant’s sales tax.
In order to increase
the city sales tax council members had to approve an ordinance
calling for the special election. They then passed a second ordinance
establishing the one-cent sales tax, which will be collected
beginning January 1, 2018 if approved by voters. Present at the
meeting were aldermen Joe Pollard, Joy Gray, Juanita Wilson, Harold
Timmerman, Dan Church, and Melissa Ratliff. All voted “Yes” to
pass the ordinances and to suspend the three-reading requirement.
Absent were Elizabeth Bland and Jeff Watson.
Next month council
members have an even bigger question. If voters approve the sale tax
increase Mitchell wants to reduce the city property tax from
five-mils to three-mils. Every September the city council is required
to set the millage rate for the next tax cycle. The maximum is
five-mils.
“If you have a
$750,000 home it would reduce your tax burden $300 a year,”
Mitchell said in April. “I want to give back (if the tax increase
passes).”
According to the
final 2016 budget property tax to the general fund brought in $14,000
from Pulaski County and $76,300 from Saline County. In September
council members will have to decide whether to wait and see if the
tax passes then change the millage amount for the 2019 tax
collection, or assume it will pass and take a chance on losing around
$36,120 in 2018.
In other action
at the August 21 meeting;
The council
passed two resolutions appointing six residents of St. Joseph’s
Glen subdivision as commissioners to the boards of the subdivision’s
two improvement districts. Cammie Wood, Bryan Rupar and Christopher
Prowse were appointed commissioners to Alexander Municipal Property
Owner’s Multipurpose Improvement District No. 43. Jamelia Wallace,
Hannah Self and Kendrick Seahorn were appointed commissioners to
Alexander Municipal Property Owner’s Multipurpose Improvement
District No. 86. District 43 is responsible for phases one through
six. District 86 covers Phase-7.
By state law the
City of Alexander approved the original resolutions forming the two
districts prior to the construction of Phase-1 and also Phase-7.
Since then all of the original commissioners have resigned and this
action was needed to fill those vacancies. Prowse, Wallace and Self
were present at the council meeting and were sworn-in by Mayor
Mitchell.
With that bit of
housekeeping out of the way the two districts will begin updating the
subdivision’s sewage system. Currently St. Joseph’s Glen has a
small treatment plant. The plan now is to connect the subdivision to
the Little Rock sewer system replacing the treatment plant with a
pumping station.
The
next regular meeting of the Alexander City Council is Monday,
September
18.
Meetings start at 6 PM and are held in the courtroom at the City of
Alexander Municipal Complex. The public is invited to attend.