Sherwood asks voters to reallocate 2% hotel tax

Sherwood voters will be asked in the Nov. 8 general election to approve a $5.5 million bond issue that would reallocate for parks and recreation projects the revenue from a 2 percent city hotel and restaurant tax that is already being collected.

Early voting for the general election begins Monday.

The proceeds of the bond issue, if approved, are projected to provide funding for soccer fields, tennis courts and a splash pad, among several other smaller projects, city Parks and Recreation Executive Director Sonny Janssen said.

The estimated cost for parks improvements needed is $5 million, according to legislation approved by the Sherwood City Council in May.

"It is not a new tax," Janssen said. "All we're doing is passing a bond issue that says we want to use this money for these projects. It's a tax we are presently collecting."

City voters approved the 2 percent levy on hotels and motel room rentals and prepared food sales in 1992. The Sherwood Advertising and Promotion Commission oversees the collection and expenditure of those funds for marketing the city and for city parks.

The city collected $892,154 from the tax in 2015 and $629,284 so far in 2016, City Clerk-Treasurer Angela Nicholson said Thursday.

"The biggest question I have when speaking in public about this is: If this gets voted down, does the tax goes away? Absolutely not," Janssen said. "It is not going to go away. If it doesn't pass, we'll have to look at another option."

Mayor Virginia Young said the ballot issue also won't change the rate of the tax already being collected.

"It's really dedicating a portion of an existing tax to a certain amount of bond money so we can go ahead and do future projects now instead of having to wait until later," Young said.

The tax revenue has provided "lots of small projects" over the years, Janssen said, but having $5 million to work with "would have an immediate impact."

"To have the $5 million immediately and not have to piecemeal those projects for the next 10 years, it's a bonus to our community to help pass this," he said.

The three major projects would be two soccer fields, six or seven tennis courts and a splash pad, Janssen said. About another dozen smaller projects would also be possible, he added.

"We certainly have some projects we're interested in doing," Young said.

The purpose is to be competitive with other cities in central Arkansas in attracting young families by adding to and improving recreational needs, Janssen said.

"That's what families want. They want the new stuff. We're trying to get the town to be a little bit younger. We're trying to attract more young families."

Construction wouldn't begin until late next year, with completion over the next two years, he said.

"Nothing's been drawn up on paper yet," Janssen said.

Young said the city "isn't going to spend a whole lot on plans until we're sure we will be able to go through with it."

Placing the issue on the general election ballot instead of holding a special election for it will place the issue in front of more voters and will save the city about $50,000, Janssen said.

"That $50,000 can go a long way for a lot of projects," he said.

Metro on 10/22/2016

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