Pea Ridge to ask voters to OK tax, issuing of bonds

PEA RIDGE — Trying to meet the rising needs of the city in the face of extensive growth, city officials agreed to ask voters to approve a bond issue to provide $5.8 million to the Street Department and a one-cent city sales tax to fund the bond issue as well as provide revenue to the Fire, Police and Parks departments.

At the June 15 meeting, City Council members approved three ordinances in connection with the issues.

The first ordinance authorized the levy of a 1% sales and use tax. The second ordinance calls for a special election to ask voters to approve the 1% sales and use tax. The third ordinance authorizes calling for a special election to issue bonds.

The bond issue can not become effective without the sales tax which funds it.

The city currently has a 1% sales tax. Most surrounding cities have 2% sales tax.

City officials have met in both council meetings and committee of the whole meetings for several months with Kevin Faught, senior vice president with Stephens Public Finance, and Ryan Bowman, bond counsel, discussing various aspects of the tax.

“You need to be sure people know you have to have the tax to pay for the bond issue,” Faught said.

The election is set for Sept. 14.

“The tax collections will be used to pay the debt service first,” Faught explained, adding that the remainder will be distributed between Fire, Police and Parks. Once the debt service is paid, the funds will be distributed between Streets, Fire, Police and Parks.

“It’s up to the council to allocate,” Faught said.

If the voters approve the tax, the mayor will issue a proclamation of results, and the tax collection will go into effect Jan. 1, 2022, Bowman said, with revenue being sent to the city in March 2022.

In other business, the council:

• Approved the agreement for animal control services between the city and Pea Ridge Veterinary Clinic.

• Approved rezone of property on It’ll Do Road from A1 to R1.

• Approved contract with Pea Ridge School District providing School Resource Officers from the Police Department.

• Approved rezoning two pieces of property on Weston Street from R1 to R2-multi-family.

• Approved the final plat of Marylin’s Orchard subdivision.

• Approved the final plat of Arlington Phase I subdivision.

• To provide an update for the auditor, made a record of having approved pay for firefighters and emergency personnel

in January 2017.