The Central Arkansas Transit Authority board of directors likely will make a decision on how to pursue dedicated funding for the agency at its July meeting, the agency's executive director said Tuesday.
Draft recommendations could come as soon as June, after a series of public meetings this month to gauge support in the community, Jarod Varner told the board at its monthly meeting.
Increases in property or sales taxes have been found by CATA consultants to be the only sources of revenue that are enough to provide the agency with dedicated funding. CATA now relies on about $12.7 million in direct contributions from Little Rock, North Little Rock, Pulaski County, Sherwood, Jacksonville and Maumelle. CATA leaders say limited funding inhibits the agency's ability to respond to community and ridership needs.
It would take a 2-mill tax increase or a rise in the sales tax of one-quarter of a percentage point to maintain existing service with modest improvements, according to documents provided by Nelson/Nygaard, a national transit consultant hired by CATA to guide its long-range planning.
A 2-mill increase would add about $80 annually to the average taxpayer's bill, according to Nelson/Nygaard. The sales tax increase would add about $84 annually.
A mill is one-tenth of 1 cent. One mill levied on an assessed value of $1,000 yields $1 in property taxes. Arkansas counties assess property at 20 percent of appraised value, so a $100,000 house has an assessed value of $20,000.
In Little Rock, property owners are levied a total of 70.1 mills, which is the highest rate in Pulaski County.
The city also has a total sales tax of 9 percent, consisting of a 6.5 percent state sales tax, a 1 percent county sales tax and a 1.5 percent city sales tax.
The public meetings will include a Blue Ribbon Commission meeting at 9 a.m. May 27 at Heifer International headquarters. The commission is part of Move Arkansas Forward, which is the comprehensive strategic plan the transit agency is developing to chart the course of mass transit in the region.
Varner also said a series of public meetings will be held between June 8 and June 19. A poll will be taken in June to further assess public support, he said.
He said he would like the board to hold a half-day work session to assess the feedback and draft the recommendations, which could be formally adopted at the commission's July meeting.
The transit agency also is working with Cranford Co. to develop a detailed marketing plan for the agency's planned name change, to Rock Region Metro, as well as its new compressed natural gas buses, free Wi-Fi and other passenger amenities. All are scheduled to be unveiled Aug. 10.
In concert with studioMain, a nonprofit organization dedicated to improving communities, CATA has submitted a joint application to the Clinton School of Public Service to allow a student team to develop a permanent coalition to promote transit in central Arkansas, Varner said.
Metro on 05/20/2015