BENTONVILLE -- Benton County's justices of the peace have set their sights on a one-eighth percent sales tax increase as the main funding source for the proposed courts building.
The Finance Committee had a special meeting Thursday to consider paying for the $30 million building. The county is also planning another $5 million in contingency costs, including renovating the courthouse once a new building is completed and other work related to the project.
What’s Next
Benton County’s justices of the peace will resume discussion of a funding plan for the proposed $30 million courts building at the Committee of the Whole meeting, set for May 8.
Source: Staff report
Joel Jones, justice of the peace for District 7, made a motion to send a funding plan centered on the one-eighth cent sales tax on to the Committee of the Whole. A one-eighth percent sales tax would raise about $24.5 million over four years and three months. The remaining costs would be covered by reserve and other revenue sources.
The motion was approved 5-2, with Jones and justices of the peace Tom Allen, Susan Anglin, Michelle Chiocco and Kurt Moore voting in favor of the plan. Justices of the peace Mike McKenzie and Josh Bryant voted against the motion.
Jones said he doesn't like a tax increase but using the one-eighth percent sales tax -- the smallest increment by which the sales tax can be increased -- is a better option than a bond issue.
"I can't in good conscience set us up for 20 years in debt and almost $10 million in interest," Jones said. "This is something we've done very rarely. The jail is the last time we did this. This is a huge project that should last us for 50 years. Do we want to saddle the taxpayers with 20 years of debt and $10 million in interest or a few years of a tax and five years of debt?"
Bryant, justice of the peace for District 2, said he can't support a tax increase. Bryant said the county has other options, including reducing the cost of the building.
"Asking for $35 million is extreme when we have the ability to ask for less," Bryant said. "Using the revenue we have wisely and cutting expenditures will get this done sooner."
The Finance Committee spent three hours debating financing options for the proposed $30 million courts building at its April 5 meeting. At that meeting, the justices of the peace agreed to focus on a temporary sales tax as the main source to pay for a new courts building.
Justices of the peace voted last month not to consider any increase in the road millage or using fine and fee revenue as a sole source of funding. The remaining options include a temporary sales tax, budget cuts, or a combination of funding options.
The county has been discussing a new building for the circuit court judges, courtrooms, staff members and related offices for several years. The justices of the peace voted last year to keep it in downtown Bentonville.
Plans are for an 86,000-square-foot building on a site on Northeast Second Street with space for eight courtrooms, jury deliberation rooms and judges' chambers. It would include space for the circuit clerk, county clerk and other related offices.
The county has six circuit court judges with five in the downtown area and the sixth at the Juvenile Justice Center on Melissa Drive. The fourth floor of the new building, with room for two of the eight courtrooms, would be left as a shell and finished when needed. The cost of finishing the fourth floor isn't included in the estimated $30 million cost.
The county budgeted $1.5 million this year for architectural and engineering work on the building. The $1.5 million is part of the total estimated cost.
If the justices of the peace agree on a funding plan and obtain voter approval, if needed, construction could begin early in 2019. Construction is expected to be completed in 24 to 36 months.
If the proposed funding plan is to appear on the Nov. 6 general election ballot, the Quorum Court has to have an ordinance calling for an election on any ballot measure approved by Aug. 28. If the question is not on the general election ballot the only remaining election date in 2018 is Dec. 11. An election on that date would give the Quorum Court until Oct. 12 to call for the election. A special election would cost the county about $11,000, according to information from the Benton County Clerk's Office.
Moore, justice of the peace for District 13, said there are arguments for having a special election.
"The one thing with having it on a general election is what you're trying to sell gets drowned out by everything else on the ballot," Moore said.
NW News on 04/13/2018