March 1, 2021
Re: MAY 11TH Special Election Ballot for the City of Cotter, Arkansas
Subj: Continuation of existing 1% Sales Tax For Water and Sewer Projects
Dear Cotter Registered Voters,
Cotter is moving forward with Phase II Sewer Line Rehabilitation project to replace the sewer line wastewater collection system along the river walking trail from Hwy 62 Bridge towards Denton Ferry RV then up the hill to the old force main pumps.
Due to the aging of the sewer line system and removal of the force main pumps over twenty years ago, the sewer line has to be redesigned to work and flow properly. This project absolutely must be done. The current design is inadequate, and deterioration of sewer line could fail causing an environmental issue on the White River!
The cost of this project is estimated to be $2,170,000. A USDA Rural Development grant of $619,000 is available to partially offset this cost. The balance of $1,551,000, is to be financed with a low interest loan secured by a wastewater revenue bond. Cotter and Gassville will share the responsibility for this revenue bond (Loan) obligation on a ratio of 38% and 62% respectively. This ratio will be re-examined annually pursuant to the Inter-Local Agreement to recalculate the ratio on each community’s usage. Cotter’s 38% share of the $1,551,000 loan obligation is $589,380.
Cotter has only two options to pay Cotter’s Share of the loan (Revenue Bond).
- Increase in sewer rates billed monthly on your water bill. Sewer charges would possibly double to pay for the Phase II Sewer Line Rehabilitation Project.
OR
- Pay off the existing loan (Revenue Bond) for the 2003 Sewer Plant Expansion retiring the current 1% sales and use tax and implementing a new 1% sales tax to pay for the Phase II Sewer Line Rehabilitation project and other water and sewer projects in the future.
Now, here is the good news! At the recommendation of the Mayor, your City Council voted to pass Ordinances to hold a Special Election in May to vote for a 1% tax to extend the Sales and Use Tax instead of raising Sewer Rates on our Residents.
With your help, we can avoid a sewer rate increase to Cotter residents needed to pay for the Phase II Sewer Line Rehabilitation Project by voting for a new 1% sales tax replacing the old existing 1% rate. To do this, the City will retire the current debt on the 2003 Sewer Plant Expansion now covered by the existing 1% Sale Tax and vote in the Special Election on May 11th for a new sales and use tax of 1% to pay for Phase II and other Water and Sewer projects in the future.
Thus, the new tax is an extension of and NOT an addition to our existing sale taxes. To make this work, the Cotter City Council has passed ordinances to place on the ballot for residents’ (Registered Voters) to approve. We need your affirmative vote FOR on both items on the May 11th ballot. See sample ballot on back.
The Special Election will be held on May 11th at Wesley United Methodist Church in Cotter. Early Voting will start May 4th through May 10th at the Baxter County Office Building. These two items need your approval.
- Adoption of a new 1% Sales and Use Tax – For water and sewer purposes.
- Sewer Improvement Bonds – To finance the Sewer project.
To ensure that our project does not inflate our sewer rates you are asked to Vote FOR on both ballot items on May 11th.
A public information meeting will be held on April 26th at the Cotter Firehouse at 6:30 pm to discuss project details and answer any questions you might have. You are encouraged to bring a neighbor and attend.
Please call me if you have any questions. City Hall 870-436-6326
Sincerely,
Mac Caradine
McGeorge Caradine, Mayor
