PEA RIDGE — City officials are considering options to fund city services;
opinions are divided.
Council member Nadine Telgemeier requested the committee of the whole meeting. She said a tax is necessary to fund the library.
Librarian Peggy Maddox, accompanied by members of the Library Board, said library officials “don’t want a tax increase of any kind.”
Council member Ray Easley said he is “opposed to a sales tax issue - it doesn’t help business.”
City Council members discussed asking for a one-cent - or any portion thereof - city sales tax.
A one-cent city sales tax was adopted in 1984. That tax, and how it is apportioned, was , approved by Pea Ridge residents by a vote. Thetax generates about $25,000 a month. The tax generated $347,037.53 in 2010, $316,210 in 2011 and $210,395.42 so far in 2012.
Telgemeier said: “We’ve invested $200,000 in a building and we’re going to send them off with $15,000 ... if we don’t have money to staff it, we’ve wasted $200,000.”
“It’s not $200,000,” Easley said.
“We do own the building. It’s a valuable piece of property.”
“You can’t do it on $15,000 ... that was my main concern, why I’m forcing the issue,” Telgemeier said.
The annual library budget is about $15,000 a year; the library receives 5 percent of the current city sales tax.
Building official Tony Townsend asked: “Where did youcome up with $200,000? It’s been around $50,000.”
Townsend and other city employees have donated time to renovating the donated building for the library.
Mayor Jackie Crabtree saidthe question should be put out to the citizens to get their feedback. “I totally agree with Nadine, I think it’s something we need to talk about.”“You’ve got to prioritize on what you want - a community center, a pool - quality of life. Would you support a tax for that?” Telgemeier asked.
Fire Chief Frank Rizzio presented a request for a 1/2 cent city sales tax and said he wants the ambulance service to be upgraded to an advanced life support service.
Council member Steve Guthrie said Pea Ridge has an edge by having a lower sales tax than the surrounding communities which may encourage Wal-Mart to build on the land owned here. “That’s our draw,” Guthrie said.
Easley concurred: “We’re in a tough economic time right now.”
“But you’ve got to be proactive moving forward,” Telgemeier said.
News, Pages 1 on 09/12/2012