Two Craighead County towns have proposed sales tax increases to help fund needed improvements created by rapid growth in the area.
Voters in Jonesboro will decide during a special election Tuesday upon two tax increases that would fund 20 road projects and create a committee to study economic needs for the city of more than 71,000. The first measure calls for a 0.875 percent sales tax for transportation improvements.
"We need this," said L.M. Duncan, an assistant to Jonesboro Mayor Harold Perrin. "We've done all we can for traffic improvements in the last three to five years on our own. We need help with the bigger projects."
He said the city is growing in population by about 3 to 5 percent each year.
If passed, the tax will generate about $14 million a year, Duncan said.
Jonesboro engineers have studied traffic patterns and created a list of high-priority projects that include railroad overpasses near the Jonesboro Municipal Airport, overpasses on the western side of town and a bypass around the eastern side of the city.
The second measure asks for a 0.125 percent sales tax that would create the Economic Development Corp. of Jonesboro, Duncan said. The corporation would create new industrial opportunities, secure funding and recruit potential businesses.
The city currently collects a 1 percent sales tax passed in 2000 that raises about $16 million annually and pays for operations and capital improvements.
Both of the proposed taxes would expire on March 31, 2026.
"If this doesn't pass, we'll do what we can when we get the money," Duncan said. "These definitely need to be done, but we're going to have to put a lot of the projects on hold. We're working hard to get the word out about how important this is."
In Brookland, about 8 miles northeast of Jonesboro, officials placed a 2 percent citywide sales tax issue on the town's ballot. Mayor Kenneth Jones said the tax, if passed, will generate about $400,000 a year and be used to upgrade its water system.
Jones wants to build a new 450,000-gallon water tank, a new well and waterlines. The project should cost between $3.9 million and $4.1 million, he said.
The tax will be collected until the projects are paid for, the mayor said.
"We are going to cover our bases and have enough money to pay for this all," he said. "This is something we really need for our growth."
The city has 3,150 people and is growing quickly. It's surrounded by the recently built NEA Baptist Memorial Hospital to the south in Jonesboro, additional businesses that have popped up as a result of the hospital, restaurants and apartment complexes.
The town built its water system in 1960 and upgraded it in 2007. A recent inspection showed that the system is expected to last "for only a few more years," Jones said.
Brookland already has a 1 percent citywide sales tax. If the new tax is favored Tuesday, residents will pay a total tax of 10.5 percent when county and state taxes are added.
If the tax fails, the city will have to raise monthly water bills from $19 to $25 to fund the needed projects, Jones said.
"It's the only option we as a city have," Jones said. "But we're giving voters the option if they want an increase on their taxes or their water bills."
Early voting for both city elections began Nov. 2.
"I think this will pass if we get enough people who understand the issue to go out and vote," the mayor said. "We took it to the people. These are our options, but we need your help deciding what to do."
State Desk on 11/09/2015