Holiday Island Citizens for Incorporation held its first online meeting July 22 to discuss voting “Yes” in the general election Nov. 3 on incorporating a municipality to be known as the Town of Holiday Island. HICI member Dan Kees, also a commissioner of the Holiday Island Suburban Improvement District, gave full disclosure of his involvement in the community saying, “I kind of have two horses in this race.”
Kees provided viewers with a clear presentation of the ballot initiative pursuant to the order entered by Carroll County Judge Sam Barr on March 26. About 85 participating residents were made aware of their right to vote for or against incorporation in the upcoming election and Kees said, “Obviously we would hope people would vote for incorporation.” A vote in favor of incorporation, Kees said, “Is a realistic way to secure the future of our community.”
According to Kees, securing the future for Holiday Island includes controlling land use, enforcing building codes and standards, and regulating solid waste collection. Currently HISID does not have the authority to perform any of these responsibilities, and Kees said, “As the community matures, this will become a growing problem.”
While code enforcement is a primary push, the deadline of HISID issuing property assessments ends in 2035. Kees said that suburban improvement districts were not intended to last forever, and that for 50 years the annual assessments have established water and sewerage systems, and roads.
Kees stated that HISID is doing a good job at matching revenue with expenses, but long-term revenue sustainability of the district is coming to an end.
Benefits and responsibilities
If the initiative is approved, the Town of Holiday Island would have a Mayor with a four-year term and no compensation; a Recorder/Treasurer with a four-year term and compensation; and five at large council members, with two-year terms and no compensation. Any registered voter with a Holiday Island permanent address can file to run for any of the elected positions at the Carroll County Clerk’s office.
Kees said the objectives for the town would be to provide funding for road resurfacing, partial funding for the fire department, a county sheriff’s office contract, to establish and enforce ordinances, and provide solid waste disposal.
These services would be funded by an allocation of currently imposed taxes at the county level. Kees stated the Town would immediately receive a percentage of the Carroll County sales tax, and a portion of the Carroll County property tax collected within the city limits.
“These are taxes that Holiday Island residents already pay and get no benefit from,” Kees said. He addressed public concern for the possibility of additional taxation stating, “There is no plan to impose a property or sales tax, and a city does not have unlimited taxing authority.”
The town would be able to receive State of Arkansas Municipal Aid Funds for roads. Based on projections, the town would receive $490,000 from these sources annually. With that estimate, Kees provided a conservative $384,000 town budget consisting of $250,000 to road resurfacing, $50,000 to fire protection, $60,000 to the Carroll County Sheriff for security, and $24,000 to administration costs.
Kees noted that because of the affordability of contract security, the town is not planning to hire its own police force in the beginning. His presentation reiterated that the cost to Holiday Island property owners is zero.
Kees said the Town Hall would be located in the same office building as HISID where its administration and meetings would be secured with a contract lease agreement. He said that HISID has more room than they need in the office and would be able to lease office space to the town.
If incorporated, HISID would retain responsibility for road maintenance (mowing, snow removal, etc.), sewer and water services, the fire department, and all amenities (golf courses, restaurant, pool).
Allison Powell, a 3.5 year non-retired resident, said she is a younger community member concerned with long-term development. She questioned Kees about an economic plan for the town, and Kees responded, “We really haven’t addressed an economic plan… that would be further down the road.”
Kees concluded the presentation by dangling a $7 million carrot to encourage voters to vote in favor of incorporation. The current estimated annual amount of $490,000 of taxpayer funds that is paid to Carroll County and other cities could be coming to an incorporated Holiday Island. Over a time period of 14 years, from year 2021 to 2035, that amount totals almost $7 million. Kees said, “If we don’t do it [incorporate] now, by 2035 we will have given a $7 million gift of our tax money to the county and other cities in Arkansas, and they won’t even send you a thank you card.”
It was a good meeting, with lots of information provided. Incorporation makes sense to me.