Officials hope to use tax to promote city

ARKADELPHIA — Citizens will take to the polls May 22 to vote on a proposed Advertising and Promotion tax that is intended to boost Arkadelphia’s visibility and economy.

“We want to stop being the bestkept secret in Arkansas,” City Manager Jimmy Bolt said.

A seven-member commission would be tasked with determining the best use of advertising and promotional funds generated by the 1percent tax. The collections could not be used for general capital improvements, the general operations of the city or the subsidy “of any group or the

Chamber of Commerce.”

Bolt said the ordinance grew out of the city board of director’s efforts over the past few years to get a handle on “tough issues” pertaining to the economy.

“How do we compete? How do we promote ourselves? The board was looking at a broad range of issues, and these were two,” Bolt said.

Fred Phillips, co-chairman of the tourism subcommittee of the Clark County Strategic Plan, said there is a need to “develop a way to market our city. We need to get our candle out from under the bushel basket.”

The commission would oversee use of advertising and promotional funds and finance projects pertaining to the arts, public recreation and regional events. Bolt said four commission members would “own or manage businesses related to the tourism industry.” Three of those four would be required to own or manage a hotel, motel or restaurant. Two other commissioners would come from the board of directors, and one would be at-large.

Restaurants, hotels and motels would be taxed 1 percent.

Phillips said giving local tourism a boost is important because “tourism is viable and clean. It creates local jobs. It brings new dollars to the community, and those dollars multiply.”

He said one of the goals of the strategic plan is to “form an advertising and promotion board. That’s what this vote is about, the ability to fund a marketing program.”

Bolt said the city “completely eliminated” its advertising budget in order to balance the overall budget. No action was taken on an earlier ordinance to start up a marketing panel because no decision could be reached on how to fill the positions, whether by appointment or election. He said the city still needs a funding mechanism by which the city can go after matching grants.

“The board instructed me to put together a new ordinance to send to the voters,” he said.

The ordinance does have its detractors.

“Some people would like to see other things addressed first,” Bolt said.

Phillips said he understands why some business owners may feel that dollars would be taken from them by the passage of the 1-percent tax.

“It is passed along to the customer,” Phillips said. He said that, in his view, the tax would be neither regressive nor progressive.

“People choose to go out to eat. They choose to stay at a hotel or a motel overnight.”

Bolt said the commission, if it is formed, would reflect the diversity in the community.

“We feel [tourism] adds to the quality of life here and will help with recruitment,” he said. “People want things to do.”

He said that if voters pass the tax and the commission is formed, he hopes the group would produce an attractive brochure for people to pick up and read about tourist spots in Arkadelphia and Clark County.