PINE BLUFF -- Three ordinances -- one to levy a five-eighths percent sales tax, one to hold a special election to put the issue in voters' hands and the other to dictate how the tax revenue will be doled out -- will be placed on the agenda for the next meeting of the Pine Bluff City Council.
The proposals were presented to the full council Thursday during a special meeting of the council's Ways and Means Committee. All council members were in attendance at the lively, 1½ hour meeting.
The ordinances -- sponsored by Bill Brumett, Ward 3; Win Trafford, Ward 2; and Donald Hatchett, Ward 3 -- call for a levy of five-eighths percent on the city's gross retail sales receipts as well as the creation of a new use tax of five-eighths percent on the sale of personal property, including a tax on lease and rental rates for properties.
About $40 million is expected to be generated over the seven-year life of the tax.
The city plans to use the money to fund initiatives from Go Forward Pine Bluff, a plan aimed at improving the city's infrastructure and quality of life and increasing its tax base.
"It's pretty straightforward and simple," City Attorney Joe Childers said.
The ordinances must be read at three different City Council meetings before they are submitted for an official vote. The first reading will be at the next City Council meeting at 5:30 p.m. Tuesday, Feb. 21.
Childers was quick to emphasize that the ordinance levying the tax could not be approved unless the special-election ordinance also was approved.
"It will not go into effect until submitted to voters at an election," Childers said.
Once approved by the City Council, the clock starts ticking to put it before voters. Conceivably, if the proposals are approved at the council's March 20 meeting, a special election could be held in mid-June.
Pine Bluff's sales and use tax is currently 9.75 percent with 1.625 percent going to the county and 6.5 percent to the state.
There was immediate opposition to the proposals from several council members.
Alderman Glen Brown Jr., Ward 2, questioned Childers about the specifics of how the funds will be spent and asked if proceeds could be used for payments of previous bond issues.
"It can be used to pay bonds," Childers said.
"Is that part of this plan?" Brown asked.
Trafford, the Ward 2 alderman, vigorously shook his head back and forth.
Steve Miller, the city's finance director, said the projected proceeds could be used to procure financing for projects "to get some projects started early."
In 2011, Pine Bluff and Jefferson County residents voted overwhelmingly in support of a five-eighths percent sales tax for the city and a three-eighths percent sales tax for the county. Those funds were earmarked to repay bonds, improve the city's sewer system, expand the animal shelter, improve the Police Department, street projects, improve the city's drainage system, Fire Department upgrades and to construct a multipurpose community center.
Alderman Steven Mays, Ward 4, said he was disappointed that numerous projects still are not a reality, yet the city is trying to burden citizens with more taxes.
"Our citizens are already overtaxed," Mays said.
"I just don't feel that I'm going to support another tax on our citizens. Period," Mays said.
Brown said he had little information about the Go Forward Pine Bluff project and questioned whether a private, nonprofit organization should be driving a project that asks for millions of dollars from taxpayers.
"So the nonprofit organization is basically going to be telling us what to do with our tax dollars?" Brown said. "The decision has already been made."
Thomas May, former chief executive officer of Simmons First Bank of Pine Bluff and a leader of the Go Forward Pine Bluff initiative, gave Brown a glossy booklet detailing the plan.
May explained that private donations would flow through the private, nonprofit organization while tax money would go directly to the city.
Go Forward Pine Bluff -- founded in late 2015 through a donation from the Simmons First Foundation -- finalized a blueprint released in January that came about after about a year's worth of strategic planning with about 100 people participating in mapping out the city's future. Implementing the plan will require at least $40 million.
The City Council, though, will be in the driver's seat, May said.
"The decision is made right here at the City Council," May said, tapping two fingers on the table in front of Brown.
The mayor as well as others from the city will be appointed to committees with the nonprofit organization, May said.
"The decision is getting made there and we're just looking at it," Brown countered.
Trafford said the City Council will always have the final say on how the money is spent.
Alderman Bruce Lockett, Ward 4, suggested that the ordinances be tabled until the council had more time to research the matter.
"It's very disingenuous to think we're going to have one meeting and put it on the agenda," Lockett said. "My people elected me to serve them and to do very much what this plan does. I would like us to take a step back, get input from our department heads and from our citizens."
Trafford said several meetings were held in the past year as well as a "big reveal with huge attendance."
"People who elected us will have the opportunity to be a part of this process," Trafford said. "It comes down to us, yes or no, on how the money will be spent."
Mayor Shirley Washington interrupted the discussion and said there will be opportunities for everyone to ask questions and get answers to their concerns.
"The one thing we do not want to have happen is to drive a wall between us," Washington said. "The purpose of this plan and any plan should be designed to pull Pine Bluff together. It should be designed to push Pine Bluff forward."
State Desk on 02/10/2017