JONESBORO -- Voters in the Craighead County seat will decide Tuesday if they want to reallocate municipal sales-tax money collected for capital improvements and use it instead for salaries and operational expenses.
The proposal calls for making the changes to a permanent half-percent city sales tax to replace funds lost when a temporary tax expires at the end of the year.
"It seems like a no-brainer," Ben Barylske, chief financial officer for the city, said of the measure. "We're not asking for a new tax. We're just asking for the option to use the existing tax differently."
If the proposal fails, it could result in cutbacks and personnel layoffs in various city departments, Jonesboro Mayor Harold Perrin said.
Voters approved a capital-improvement tax in 2000 to help pay for construction of a new City Hall, fire stations, road work and a police station. Residents also passed a temporary half-percent sales tax in 2010 that expires Dec. 31 and helps fund public safety.
Each tax generates about $7.5 million annually, Perrin said.
There is no known organized opposition to the tax measure, Barylske said.
"In 2000, we wanted a tax in place to make sure we could pay for infrastructure," he said. "Now we're asking to remove those restrictions.
"It's a common sense approach," he said. "It's the right thing to do."
Voter turnout was slow during the first week of early voting, which began Tuesday, said Craighead County Clerk Kade Holliday.
Only 70 voted during the first two days of early voting. On Thursday, voting increased as 153 people cast ballots, he said.
"I hope that is a good thing," Barylske said of the low vote total. "It's tricky getting people out for a special election."
Barylske said he asked for the special election in August, rather than placing the measure on the general election ballot in November. Depending upon the outcome, he needed time to prepare the city's 2015 budget, he said.
The city has a budget of about $40 million.
The city could have asked voters during the November election to support a new half-percent sales tax that would replace the expiring one, but Perrin said he didn't favor a new one.
"We feel like we're doing OK. We're done with most of our capital improvements," the mayor said.
"It's not the best time to go for a tax," Barylske added.
If this proposal fails, Barylske said he will ask all city departments to look at making significant cutbacks.
The city could also end up laying off some employees. He said departments -- such as police or fire -- would not be specifically targeted.
"If it doesn't pass, we are looking at several layoffs," Barylske said. "It would touch everybody."
City officials have touted the tax to several civic organizations, and they've held several public meetings. Only four people attended the last meeting, held earlier this month, he said.
"We've done everything we could," Barylske said. "We have been very efficient, and I think everybody is OK with that."
If the city wants to build a new railroad overpass, a convention center or a water park -- all expensive ventures that have been discussed in the past by city officials -- voters would have to pass a new sales tax to fund those plans, he said.
"The city is growing. The cost to operate the city is going up," he said.
"That's why we need to restructure what we've got. If we want new infrastructure, we'll have to ask for a new tax anyway."
State Desk on 08/11/2014