Benton Council hears feedback on tax extension

The Benton Council held the first of two public hearings Monday on the plan to extend the Advertising and Promotion tax that was created to fund the Benton Event Center construction.

The second hearing is scheduled for 6 to 8 p.m. Monday at the Benton Event Center, located at 17322 Interstate 30 N in Benton.

During its March regular meeting, the council heard the first reading of Ordinance 11 to extend the tax. To pass, the council must have two more reads and vote to pass it.

The tax is a one and half percent tax on the gross receipts or proceeds of hotels, motels, restaurants, cafes, cafeterias and similar businesses.

"There have been a lot of questions asked," said Benton Mayor Tom Farmer while introducing a Power Point presentation to answer some of those questions.

Stephanie Jones, director of parks, started the presentation discussing the survey parks put out over the course of several months.

"We really wanted to get a feel of what the community was searching for," Jones said.

They also accepted public comments with the survey.

The survey found people's top wants are hiking trails and paved bike trails. The rest of the list included neighborhood parks, mountain biking trails, indoor water park, tennis/pickleball complex, soccer complex, campgrounds, archery range, championship disc golf course, renovation of C.W. Lewis Stadium and turf ballfields.

Jones said the department is working to go forward with the projects that it can afford.

Dan Beranek and Brett Budolfson, of Mcclelland Consulting Engineers, shared renderings of different projects that could be done around the city to create spaces that meet the wants people have expressed, from an outdoor archery center to a soccer complex with four to six fields and a water complex.

"These are just proposed projects to help bring people into the community," Farmer said.

Chief Financial Officer Mandy Spicer discussed what the parks uses money for.

The Parks Department receives revenue through a half cent sales tax, a quarter cent sales tax, membership fees and sponsorships.

Most of the revenue is from the sales taxes.

The quarter cent tax covers salaries and improvements in some of the parks.

The half cent tax covers maintenance on the River Center and

improvements to the parks attached to Riverside Park.

She also discussed the various bonds the city has and when they expect to be paid, including the bond for the Benton Event Center, which due to the A&P tax will be paid off six years early.

After the city shared that information, the hearing was open to public comment.

Wayne Beech was the first speaker. He wanted to know if there are figures available on the return on investment and cost-benefit analysis for the proposed projects. The city did not have those.

Shellie Poole asked why the council wants to enact the extension through an ordinance. City Attorney Baxter Drennon told her the Arkansas law allows a council to enact an A&P tax.

In a comment on Facebook Live, a person asked how much the Benton Event Center brings in each year. Council Member Shane Knight provided the year by year break down. In 2013, after it opened in October, it earned $32,672; 2014, $249,993; 2015, $313,861; 2016, 354,114; 2017,$375,447; 2018, $386,062; 2019, $413,669; and 2020, $216,262.

So far in 2021, it has earned $45,148.

Center Director Nikki Chumley said it has made $2.3 million since it opened.

Damon Helton wanted to know what the council will do if the people don't want it. Would they allow it to go on the ballot?

Drennon told Helton the city has procedures in place to allow citizens to gather signatures to get an ordinance on the ballot.

Helton went on to say he hated taxes and that took issue with what he saw as the habit of governments to say a tax is meant for a particular project, but when it is time for it to sunset, they extend it to use for something else.

"This is an ongoing thing that will continue to happen. Your hand will never get out of our pockets," he said.

He told the council to let business drive commerce, not government.

Mark Fikes, who led the A&P Commission when it was working to get the Event Center built, said he is in favor of extending the tax, but wants to know why the council will not let the voters decide.

Previously, the council had tried to do a tax by its own vote like this and the people pushed back, but Fikes said when they were allowed to vote, they approved it by 72 percent.

Umang Patel, owner of Fairfield Inn & Suites, said from the point of view of a hotel owner, this tax is a good thing. He is in favor of it. He said the Benton Event Center was critical to him building his hotel in Benton.

Terry Benham, spoke as a resident and the general manager of the local soccer program. He was very excited about the soccer complex idea. He told council if they build it, he can have it full almost every weekend. In partnership with Bryant, they could bring a huge tournament to the county twice a year along with smaller tournaments, he noted.

Benham said he personally hates taxes.

"I don't see it as a tax we pay, but I see it as an investment in the community," he said adding that he believes tourism is underutilized in Benton.

Lamont Cornwell, executive director of the Saline County Economic Development Corporation, said this is Benton's chance to be the "Northwest Arkansas of Central Arkansas."

Council Member Steve Lee expressed during the hearing that he is for the tax, but feels it should be put to the people for a vote.

Jana Helton said she agrees with Lee. She said this current tax should be allowed to sunset and a new A&P tax put before the people.

Carl West presented his own plan for a park. He is working to bring Smash

Hit Sports from New York to Benton with his idea. He proposed putting it at Exit 114. If the city got this company, he said there is a bat company and apparel company which would follow. He said it would create 500 jobs.

Josh Farmer suggested the council poll their constituents to make their decision.

Tom Farmer ended the meeting by saying he personally does not like taxes, but "Without taxes we wouldn't have the things we have today," he said.

The city will take more comments during the public hearing Monday.