Nevada County Picayune and Gurdon Times Newspaper Archive

Smith, Gurdon Council Back Campaign To Return Tax Monies

A taxing situation is going on in Clark County, with Gurdon Mayor Rick Smith leading the way.

Smith, talking to the Gurdon City Council Monday, March 13, said the one-cent sales tax in Clark County brought in $186,409 in January.

The money is allocated to the incorporated cities, but because of an ordinance passed in 1988, it all goes back to the county.

Otherwise, he said, Gurdon's share would have been $19,652 for January.

What occurred in 1988 was this. There was a one-cent sales tax on the books to pay for the Clark County jail, but it was about to go off the books.

County officials urged the people to keep the tax, then went to the various leaders of the cities asking them to let the county keep all of the revenue to get the county on better financial ground.

At the time, the county was in dire straits financially and needed the money. In 1988, the county-wide tax brought in about $1 million.

But, as Smith told the council, times have changed and so have circumstances. Now the tax brings in around $2.5 million a year and the county is better off financially than it was 12 years ago.

However, he said, the cities now need their share of the tax monies.

Most county taxes are divided among the incorporated cities based on population. In Clark County Arkadelphia garners 47 percent of the people, while Gurdon has 10.5 percent of the population. In the county, the population is 36 percent not living in incorporated cities.

Gurdon, Smith said, paid more than $1,100 to have prisoners housed in the Clark County jail in January, and the city pays 10.5 percent of the municipal court costs.

Discussing the county's budget, Smith said two funds stand out  the general fund and road and bridge fund.

For Y2K, he said, the general fund anticipates revenue of $3.5 million, with 90 percent of this to be allocated. This means more than $350,000 will be placed in a contingency fund.

Of the other money, the appropriations call for $3.2 million to be spent, leaving $472,000 unappropriated.

For the road department, Smith said, the budget is $2,015,448.83, with all but $763,551.77 to be spent.

This, he said, leaves $1,235,554.10 unappropriated from two budgets that will not be spent.

The money, he added, will be used to buy certificates of deposit for the county.

"I'm spearheading the campaign to go after Clark County's cities' part of this money," he said.

"This is not a personal attack on the people at the courthouse. They're just doing their job and playing the hand they're dealt."

This situation, he said, was set up before anyone at the courthouse now took office.

"I don't want this to be a political issue," Smith told the council, "but we need to let the people of Clark County know the situation and make a decision. It needs to be placed on the ballot in November."

He added the current administration isn't doing anything illegal in how it handles the funds.

In 88, Smith said, the county was on the verge of going broke, but has since been successful.

Most of those responsible for this success, he continued, live inside cities.

"It's not fair for county government to take all of the tax money and apply it to 36 percent of the people," he said, "but this is what's being done."

Times have changed, Smith said. The county's roads are in better shape than ever, and in better shape than most city streets. "I don't think county roads need to be paved, but need to stay country roads."

Smith plans to contact the Clark County Quorum Court to address the situation. "I hope they'll be willing to meet with representatives of the cities and work out a compromise. I give them my word I won't ask the people of the county to vote on anything that would cripple the county government."

Cities, he said, may not need all of their portion of the tax, but only a percentage.

If the cities kept 50 percent of their part, he said, it would only decrease the road department's budget by $376,000 a year. "It had $760,000 left over this year," he pointed out.

Smith suggested city residents contact their justices of the peace about this issue. In Gurdon these people are Larry Thomerson, Jim Hatley and Mike Cox.

A resolution will be brought before the Gurdon City Council to show support.

With the tax money coming in as it has been, Gurdon's share would be about $240,000 a year.

"The quorum court can either pass an ordinance and put this on the ballot in November, or the people can get on the ballot by petition," he said.

Smith doesn't advocate the tax be completely removed. He said it would devastate the county if it were taken off the books.