At the Cotter City Councl meeting in December 2020, three ordinances were placed on its first reading regarding the sales tax initiative to pay for Water and Sewer Improvements. Mayor McGeorge “Mac” Caradine tells KTLO, Classic Hits and The Boot news, the initiative is an effort to continue an existing sale tax. Currently, the City of Cotter has a 1% sales tax that pays for a Bond/Loan that the residents approved for the Sewer Plant Expansion in 2003. We will pay this Loan off early which should be paid off by June, 2021.
Mayor Caradine says, the Ordinances moved to its second and third readings and passed at the council meeting on January 28, 2021. There are three ordinances required to place the 1% sales tax on the ballot for Special Election scheduled for May 11, 2021. Residents need to vote “FOR” on May 11, 2021 on both items on the ballot (1) to approve the 1% Sales tax for Water and Sewer Projects and (2) Revenue Bond to fund the Phase II Sewer Line Rehabilitation Project to pay for the Loan from USDA.
Caradine says there are a number of steps required for the extension of the sales and use tax. The current Bond (loan) on the sewer plant will have to be paid off before executing a new loan from USDA. Once the current loan is paid off, the current 1% sales tax expires, thus the reason for placing a new 1% sales tax on the ballot for Special Election in May. This new 1% sales tax will pay for the Phase II Rehabilitation Project to replace sewer line along the river walking trail and other Water and Sewer Projects in the future.
The City would need approval by the Residents by a Special Election to continue the 1% Sales Tax to pay for the Phase II Sewer Line Rehabilitation Project shared with the City of Gassville.
Caradine says the sales tax is being considered instead of a sewer rate increase. The City Council has only two options to pay for the Phase II sewer rehabilitation improvements, (1) Double the Sewer Rates on the Water Bill or (2) Continue a 1% Sales and Use Tax. Mayor Caradine recommended last year to council to continue the sales tax in lieu of a rate increase to pay for future water and sewer project.
The Cotter Mayor says a public information meeting for residents to ask questions is planned for April 26, 2021 at the Firehouse at 6:00 pm. The Special Election will be on May 11, 2021 located at Wesley United Methodist Church on Highway 62/412 in Cotter. Early Voting will be from May 4th to May 10th at the Baxter Country Office Building. The residents should vote “FOR” on both ballot items to pass and to avoid increasing sewer rates in the near future.
OFFICIAL BALLOT For Special Election in City of Cotter, Arkansas on May 11, 2021
Ballot Item 1:
1% SALES AND USE TAX
Adoption of a new 1% local sales and use tax within the City of Cotter, the net collections of which remaining after deduction of the administrative charges of the State of Arkansas and required rebates will be used for one or more of the following: (a) to pay and secure the repayment of bonds approved by the voters and issued by the City from time to time to finance capital improvements and (b) for water and sewer purposes. The levy of the sales and use tax is not dependent on any bonds being approved or issued. If approved, the levy of the sales and use tax will commence on January 1, 2022.
FOR …………………………………………………………………………..__X___
AGAINST ………………………………………………………………….._____
Ballot Item 2:
SEWER IMPROVEMENT BONDS
Bonds of the City of Cotter in the maximum principal amount of $1,551,000 for the purpose of financing a portion of the costs of acquiring, constructing and equipping betterments and improvements to the City’s sewer system, and, in order to pay the bonds, the pledge of (a) a new 1% local sales and use tax levied within the City by Ordinance No. 2020-06 (the “Tax”), if the Tax is approved by the voters, and (b) revenues of the City’s water and sewer system. Any collections of the Tax not used for payment of the bonds will be used by the City for other lawful purposes. If the bonds are approved, the City may, prior to the issuance of the bonds, obtain interim financing as permitted by Arkansas law.
FOR …………………………………………………………………………__X___
AGAINST …………………………………………………………………_____
