Voters are being asked to approve a bond issue to provide $5.8 million to the Street Department and a one-cent city sales tax to fund the bond issue as well as provide revenue to the Streets, Fire, Police and Parks departments. The election is set for Sept. 14.
The city is hosting public meetings to answer questions and provide information about the issue. The next meeting will be held from 9 to 11 a.m. Friday, Aug. 6, in City Hall.
The city currently has a 1% sales tax. Most surrounding cities have 2% sales tax.
Kevin Faught, senior vice president with Stephens Public Finance, and Ryan Bowman, bond counsel, reminded city officials they must educate the public.
"You need to be sure people know you have to have the tax to pay for the bond issue," Faught said.
"The tax collections will be used to pay the debt service first," Faught explained, adding that the remainder will be distributed between Fire, Police and Parks. Once the debt service is paid, the funds will be distributed between Streets, Fire, Police and Parks. "It's up to the council to allocate," Faught said.
If the voters approve the tax, the mayor will issue a proclamation of results, and the tax collection will go into effect Jan. 1, 2022, Bowman said, with revenue being sent to the city in March 2022.
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Arkansas has a 6.5% sales tax; Benton County has a 1% sales tax. Minimum sales tax rate in Benton County is 7.5%.
Cities and towns in Benton County tax rates:
Rogers^9.5%
Bentonville^9.5%
Bella Vista^9.5%
Siloam Springs^9.5%
Lowell^9.5%
Centerton^9.5%
Gentry^7.5%
Pea Ridge^8.5%
Gravette^7.5%
Garfield^7.5%
Decatur^7.5%
Cave Springs^9.75%
Sulphur Springs^7.5%
Avoca^8.5%
Gateway^7.5%
Hiwasse^9.5%
Maysville^7.5%
Elm Springs^9%