FORT SMITH -- City directors hit a snag -- state law -- when they tried Tuesday to hold the second of three readings of an ordinance to institute a $100 business license fee to raise money for the Police Department.
City directors had voted 4-3 on Dec. 5 to pass the ordinance, but because the measure did not get five votes in favor, the ordinance had to be read three times before it would go into effect.
At the start of Tuesday's special meeting for the reading, City Administrator Carl Geffken announced that the city's attorney discovered that Arkansas Code Annotated 26-77-102(a) required a two-thirds vote, or five of the seven-member board, to pass an ordinance requiring local businesses to pay a business license fee.
The vote the board took on the ordinance failed because it did not receive the required five votes, Geffken said. He said he was placing the ordinance on the Tuesday meeting agenda to allow city directors to vote again.
"If it does not pass, then [city finance director Jennifer Walker] and I will be working to make the reduction to the new requests for 2018 that reduces those requests by $471,280," Geffken said.
City directors intended the $471,280 the business license fees were estimated to raise to be used to help come up with the money to hire 13 additional police officers and buy new police vehicles and equipment for the department.
The second reading of another ordinance Tuesday, to increase the city's franchise fee from 4 percent to 4.25 percent, was successful. It also passed last week by a 4-3 vote and required three readings to take effect.
City officials said the increased franchise fee would generate $554,000. City directors also intended that money to help generate more money for the Police Department.
City directors who opposed the two revenue-producing fee ordinances complained that the city should be reducing the tax burden on residents instead of increasing it.
State Desk on 12/16/2017