Council faces levy decision in Sherwood; option studied for funding street, drainage upgrades

Sherwood City Council members are faced with at least two different proposals for a city sales-tax increase to support bonds to pay for street and drainage improvements.

One ordinance would call a special election for a one-quarter percent sales and use tax to go before Sherwood voters, while the second asks for a special election for a three-quarter percent sales and use tax for voters to consider.

The one-quarter percent sales tax would require another ordinance, also on the agenda, authorizing the levy if it were approved in an election. There isn't similar accompanying legislation regarding the three-quarter percent tax ordinance.

The Sherwood City Council meets at 6 p.m. today at Sherwood City Hall, its first meeting at the earlier starting time that was agreed upon last month. Council meetings previously began at 7 p.m.

The council will consider the proposals at tonight's meeting, but it is unlikely to vote to call a special election over one of the proposals just yet, Mayor Virginia Hillman Young and City Attorney Stephen Cobb said last week. The next regular council meeting is scheduled for July 24.

The proposals originated with the city's street committee, of which Alderman Kevin Lilly is chairman.

"The street committee has opined that perhaps a sales tax might be a good method to fund necessary street improvements and street repairs," Cobb said. "Alderman Lilly asked me to get some preliminary drafts, if you will, of what that might look like if we asked for a sales tax that would support a bond issue.

"I do not think there will be action on it Monday night, other than discussion," Cobb said. "I think Kevin would like to get people talking about it. It's just something to put in front of the aldermen for them to start thinking about it."

Young said it surprised her to see the two different proposals.

"It is for discussion," Young said of having competing ordinances. "For me, it's confusing."

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Both said discussions have gone on for "a long time" about how to pay for needed street and drainage improvements and for ongoing street maintenance work. A sales tax without an accompanying bond issue is also a possibility, they said.

"I don't think it needs to be bonded anyway," Young said.

A proposal for a sales tax that would be partly permanent and partly temporary could go to voters "at some point," Cobb said. That would be similar to what neighboring North Little Rock has proposed in an Aug. 8 special election.

North Little Rock voters will decide on a 1 percentage point city sales tax increase that would be equally divided between a permanent tax for general operations and a five-year tax for capital improvements.

Consumers pay a total 8.5 percent sales tax within Sherwood, consisting of a 6.5 percent state tax, a 1 percent city tax and a 1 percent Pulaski County tax.

"Whether or not [a new tax] would be supported by bonds or will be connected to a bond issue, that remains to be seen," Cobb said. "I don't think the mayor or the street committee or the aldermen are married to a bond issue. We might just ask for a straight-up sales tax and go that way."

Any special election called by the City Council must allow 60 days notification to the Pulaski County Election Commission and also have time for the ballot title to obtain state approval.

Metro on 06/26/2017

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