Months of discussion have coalesced into a unified decision to ask the voters of the city for a one-cent city sales tax dedicated to four city departments without specifying the particular percentage per department.
Ordinances which resulted from the agreement were to be presented to the City Council at its regular meeting Tuesday, June 15.
Voters will be asked to approve issuing bonds which are expected to bring in $5.8 million to the Street Department.
The bonds would be secured with revenue from the 1% sales tax with the payments for bonds coming out of that revenue. The remainder of the revenue would be split between the Fire, Police and Parks departments as determined by the Council.
"The bonds get first priority," Kevin Faught, financial advisor, said.
"I don't want it to be too confusing. I don't want the people to just shut it down," Ginger Larsen, council member, said.
"We really can't make our decision on whether it will pass or not, but what's best for the long haul of the city."
"I've kicked it around both ways," Steve Guthrie, council member, said. "The biggest thing is that if it's dedicated, we're in the same way we are with the 1984 tax."
Guthrie said departments may have different needs at different times and he wanted the Council to have the flexibility to shift the money to where it's needed most.
Bond attorney Ryan Bowman noted that the option putting percentages in the ordinance is "very confusing."
"If we're struggling as a group, you can imagine trying to sell it," Bowman said.
"This would bring us in line with neighboring, surrounding cities that are already collecting 1 to 1.5% more than we are," Tony Townsend, city building official, said.
Pea Ridge currently has a 1% city sales tax, which was approved by voters in 1984. City officials have not requested a sales tax increase since then.
"It's the department heads' jobs to create a presentation to show the council what the department needs," Mayor Jackie Crabtree reminded council members. "That department head has to step up to show what is needed and why. It's the council's job to determine where the money comes from."
"Let's move forward with option A and put it in the voters' hands," Cody Keene, council member, said. "Then, do what we do as a council."
"They mayor and I have been talking about this for two years now," Faught said. "It's gotten to a point where it sounds like everybody's in agreement. Now it goes back to education ... to educate your voters."
City officials agreed they would seek a special election in September to share costs of a special election with Garfield, whose city officials have already called for a special election in September.