Special Election for Alexander one-cent sales tax is Tuesday; where do you stand?

(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.