Siloam Springs Voters Approve Sales Tax Change

Wednesday, September 11, 2013

SILOAM SPRINGS — Voters approved changing the city’s 1-cent sales tax to be split 40 percent for police and fire departments, 40 percent for street projects and 20 percent for administration.

Voters approved the measure with 68 percent of the vote in a special election Tuesday, according to unofficial results. A total of 454 people voted for the change while 210 voted against it.

“It’s exciting, and I’m thankful the voters have the confidence in allowing the city to another opportunity to further demonstrate what our city employees can accomplish to maximize city funds,” said David Cameron, city administrator.

The change begins Nov. 1 and will end in 10 years. After 10 years, the sales tax will return to allocating 20 percent for administration and 80 percent for streets. The 1-cent sales tax was approved in 1978.

City officials said the change will take pressure of the capital budget.

“This will free up funding to replace our police and fire fleet and buildings without utility rate increases or cutting service,” Cameron said. Currently, utility revenue pays for these improvements.

A construction crew will be established and road construction equipment will be purchased. The crew will initially work to mill and overlay minor secondary streets. A list of projects will be determined.

By milling and overlaying the streets, the construction crew could save the city between $75,000 and $100,000 per mile of street. The savings would be from overhead and labor costs to hire a company to do the work.

The crew will free Street Department workers from doing larger road projects so they can resume road maintenance, including building sidewalks, sealing cracks, patching potholes, alleyway improvements and cutting low-hanging limbs.