During Public Comments on Monday, candidate Peg Adamson told city council she was concerned about what people are saying regarding the one percent tax. “The portion for the Auditorium is getting muddy,” she said. Citizens are mixing rumors with facts, and she urged council “to get the straight word out if you want it passed.”
Ken Foggo said the city has spread misinformation about the financial history of the situation related to the sewer plant, and does not believe the Auditorium has been operated as the enabling legislation intended. He called idea of building a parking garage downtown “a ludicrous boondoggle” which will double the city’s indebtedness, and said he will vote No on the tax.
Betsy Rodier also had concerns about the tax, saying she saw a possibility of tax revenue being spent contrary to intention.
When council took its turn for comments, alderman Terry McClung admitted the city has neglected its infrastructure for years but is at a crossroads with what it needs to do, and the one percent tax is critical for getting the city back on sure footing. He asserted he has seen as many shows at the Auditorium as anyone, and the tax can make the difference for taking care of the facility. “The tax might sound like a lot, but it’s not,” he said, and added now is the time to make a difference for the Auditorium and the city’s infrastructure.
Alderman James DeVito stated the tax was very important for the city. A declining population is put in the position of maintaining the streets and the sewer and water system used by all visitors. If the tax does not pass, the city will be forced to raise water and sewer rates dramatically in perpetuity, but the tax will sunset in ten years. “It’s a penny on a dollar,” he said.
He added that 80 percent of the tax revenue would come from tourists, and “will solve all sorts of issues for Public Works” by enabling it to address long-deferred maintenance. Also, the trend of increased CAPC tax revenue every year presents the opportunity to build a parking garage downtown which will be a huge benefit for the Auditorium. It would make a visit to Eureka Springs more accommodating for tourists and at no cost to the city because the bond payments would be guaranteed by the CAPC.
Alderman David Mitchell commented, “The tax will not be the kiss of death to tourism.” He said folks talk about past mistakes. “Fine, but it’s past,” Mitchell answered. He does not want to go forward with an impaired water and sewer system when there is a chance to repair it. He urged citizens to take the time to look at the data available. He admitted he has disparaged how the CAPC has handled the Auditorium in the past, but they met his challenge and came through with a plan for promoting the Auditorium. He asked voters to vote for the tax. “Do not less it pass us by,” he implored.
Alderman Mickey Schneider agreed it is only fair to get the tourists to help pay for repairing the infrastructure, and contended that one penny on a dollar would not keep tourists from shopping downtown.
Alderman Kristi Kendrick said she also supported the tax. “If there were ever a chance to fix the Auditorium, this is it,” she said, adding that contrary to rumors, none of the tax revenue would go to the CAPC. She invited voters to go to her website kristi4council.com for more information.
Mayor Butch Berry said a person came to him after hearing that some of the one percent tax would go to the CAPC. “Wrong,” he clarified. The one percent tax would create an Auditorium Commission independent of the CAPC. “If you ever want to get the Auditorium out of the hands of the CAPC, this is it.”
He stated the predicament the city faces with aging infrastructure is nothing new, and repairing the water and sewer system has never been adequately funded. “We didn’t get here overnight, and we won’t fix it overnight,” Berry commented. He said the idea for the tax came from a major local retailer who claimed the last sales tax increase did not affect his business.
Berry added that the city might still need a rate adjustment for water and sewer to maintain compliance with bond requirements. He opined that a tax of one cent on a dollar is not much, the city will not be able to make repairs without it, and the city will dedicate a line item in the budget to tracking transactions related to the tax so citizens can see how the money is spent.
“Do you want our visitors to help pay for it or do we want to pay for it by ourselves?” he asked.