Officials address city tax

FORT SMITH — Fort Smith voters can approve more than $167 million worth of projects next month without increasing the city’s sales tax rate, city officials told a group at the Fort Smith League of Women Voters on Monday.

In order for that to happen, voters must approve a slate of six ballot questions that would allow the city to refinance some existing bonds, approve the issuance of new bonds and reallocate a 1 percent sales tax in place since 1997, said City Administrator Ray Gosack.

The presentation to the league by Gosack and Mayor Sandy Sanders was one of many they have been making to civic groups to educate voters about issues that will appear on the March 13 special election ballot, which will consist of six separate questions.

During the presentation, Sanders responded to complaints by many in attendance that the combined sales tax rate of 9.25 percent in Fort Smith is too high. He said it is not as high as other cities, such as Menifee, which has a 10.75 percent sales tax.

Other cities such as Fayetteville and Springdale also have a 9.25-percent sales tax, which is a combinationof local and state sales taxes.

“If you compare Fort Smith’s sales tax rate to what we have been able to do with it, I think you will see we have done a good job over the years with the taxpayers’ dollars,” Sanders said.

Gosack said the city proposes to continue a 1 percent sales tax in existence since 1997 that has financed a variety of projects, from expansion of the city’s library system to ongoing work making storm sewer improvements required by the federal Environmental ProtectionAgency.

The city proposes splitting the 1 percent tax into two parts: a 0.25-percent tax that would end in 10 years and a 0.75 percent tax that would end when various bonds are repaid, estimated in 2027, Gosack said.

Without a refinancing, the bonds would be repaid in 2014, he said.

Revenue from the 0.25 percent tax, the first ballot question, would pay operating expenses for the fire and parks departments and enable $13 million in park system improvements, Gosack said.

The second question asks voters to allow the city touse 0.75 percent of the 1 percent tax to refinance existing bonds.

If the refinancing question is rejected, none of the other projects on the ballot would go forward and the existing tax would continue to be used to pay off existing bonds, Gosack said.

“So it is important for voters to approve this [refinancing] question on the ballot if they want anything else to go forward,” Gosack said.

According to information handed out at the league meeting, the city is asking voter to approve bonds totaling:

$55.4 million to refinance the storm sewer improvements.

$71 million more for additional storm sewer improvements.

$28 million for replacing six miles of water transmission line from the Lake Fort Smith treatment plant and expansion of water service to Chaffee Crossing and the city’s southern growth area.

$9 million for building a new fire station at Chaffee Crossing, replacing aging fire apparatus and renovating fire stations.

$4.3 million for the city’s share with Sebastian County for the construction of an $8 million aquatics center at the county’s Ben Geren Regional Park.