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Council opposes Amendment 3

BY JOHN MILLER
Published Wednesday, October 30, 2002 in the Nevada County Picayune

Prescott's City Council passed a resolution opposing proposed Amendment 3, the so-called food tax.

This was done during the council's regular monthly meeting Monday, Oct. 21.

Prescott Mayor Howard Taylor said the amendment is something everyone needs to pay close attention to, as it can have serious repercussions across the state.

The resolution passed by the council opposed the amendment, which has been certified for the Nov. 5, General Election ballot, because the city stands to lose 30 percent of its revenues, which would mean services would have to be cut, and the issue, if passed, could do long-term damage to Arkansas.

Councilman Dick Bright said the legislature could remove some of the 120 tax exemptions the state currently has.

Taylor said there is no solution for the loss of funds from the amendment, and the legislature could look to raise state income taxes and property taxes. "This is the worst piece of legislation to come down."

Jon Chadwell, executive director of the Prescott-Nevada County Economic Development Office, said the passage of Amendment 3 would be a "double whammy", as the state's economic development office would also take a severe hit, during a time when Arkansas is barely able to compete with surrounding states as it is.

Amendment 3 was put forth by the Arkansas Libertarian Party, a group opposed to all taxes.

Should this issue pass on Nov. 5, Arkansas stands to lose $700 million annually, with public schools alone losing $117.6 million.

Medicaid losses would amount to some $126 million, which, when the federal match of 3:1 is added means the total loss would be $561 million. Additionally, the Department of Human Services would be forced to cut entire programs to save $168 million.

The loss of the tax money would also reduce financial support for law enforcement, firefighters, trash pickup and street and road repair.

It would also have a detrimental effect on the city's ability to obtain bonds in the future. The state would also have problems passing bond issues because of the lack of funds to repay them.

The council wasted no time in approving the resolution unanimously.

Another resolution was approved by the council, this one dealing with the rural water system.

The resolution basically accepted the conditions for the project, including the fee schedule on repaying the bond issue from the Arkansas Soil and Conservation Commission.

Chadwell addressed the council, and said, seven volunteers went door-to-door talking to residents who could be affected by the water project, informing them of the importance of getting the easements signed.

The group, he said, managed to get about 30 easements signed. He also said appraisals have been done on other properties along the system for condemnation proceedings.

One more push will be made to get people to voluntarily sign the easements before condemnation proceedings begin. Chadwell said many people will be surprised to find they won't be getting large sums of money if their property is condemned for an easement.

"Some of the appraisals came back as low as $10," he said. "It's not like they're selling the land."

At this point, Chadwell said, between 125-130 condemnations could be done.

Chadwell also gave the EDO report, and said Meyer's Bakery of Hope is renting the Red River Knitting building as a month-to-month tenant.

Meyer's is using the facility as storage as the company is preparing for the holiday season when large amounts of bread products are sold.

Meyer's is using about three-fourths of the building, Chadwell said, as the remainder of the structure contains equipment from Red River.

Several people, he said, have looked at the building as possible long-term tenants, and this is why the agreement with Meyer's was done on a month-to-month basis.

Work is progressing on the fire station/parks building, Chadwell said. Ideas were gathered from both groups for the 140 foot by 50 foot structure.

An architect has visited the site, and will examine the preliminary drawings to see if they would work.

On the issue of animal control, Taylor said Nashville won't be getting an animal control officer to Prescott until after the first of the year.

This is because Nashville was also working on an agreement with Washington, during the time a deal was being made with Prescott, to pick up loose dogs.

The Nashville animal control department realized it didn't have the room to handle all the dogs involved, and is making arrangements to take care of the problem.

Water Superintendent Perry Nelson gave an update on the Moore Street project. He said water line has been replaced from Martin to Ash streets, with a larger line ane new fire hydrants installed. This project cost the city about $10,000.

The second part of the project, he said, began in front of the Hawthorne Apartments and ran down Ross Street to Third Street, with new line and fire hydrants being installed as well.

The project, he said, came in under budget, though some work remains to be done.

He also updated the council on the water plant project, which is almost done.

Nelson said the floor held 600 yards of concrete, with the walls having been poured as well. Forms are currently in place for the roof, and the project could be finished in the next two or three months.

The system has tied into the lines at the plant, but hasn't been connected to the tank yet. At this point, he said, the electrical work needs to be finished before all connections are made and tested.

City accountant Carl Dalrymple told the council it has control its expenditures for the rest of the year.

He said there is a purchase order system in place, but it isn't being followed as written.

He also said because of the November 5 election and Amendment 3, two budgets will be prepared for the city. One will be done as if Amendment 3 failed, with the other taking a 30 percent loss of revenue into account should the measure pass.


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