Nevada County Picayune and Gurdon Times Newspaper Archive

Public Hearing Set On Sales Tax

A public hearing has been scheduled for Thursday, February 6, at Prescott City Hall to talk about the one-cent sales tax the city collects.

The Prescott City Council did not adopt the 1997 budget for the tax revenues as presented by Mayor Howard Taylor during its regular meeting Monday, January 20.

The budget shows how the city plans to spend the revenues, which was originally collected to benefit the Nevada County Hospital. The hospital closed in 1995.

The city has over $460,000 set aside in a special account from the collection of the tax it has kept collecting since the hospital closed.

Taylor worked with the budget committee to spend the revenues of the tax in 1997 in a variety of ways.

42%of the tax money has been set aside for economic development. It is estimated the tax will generate about $350,000 this year.

City beautification will benefit from 19% of the tax money while health care will get about 14% of the money.

11% will go to parks and recreation while city sidewalks will benefits from 6% of the tax.

Prescott School District and/or education will get about 8% of the tax money.

Council members Danny Beavert and James Roy Cornelius voiced concern from city residents - and requested the public meeting so citizens can air their opinions of the continued tax.

Council member Dick Bright, who sits on the Prescott-Nevada County Economic Development Office cooperative board as a city representative, told the council members the tax needed to continue in sake of economic development.

"For the first time in my life," Bright told the council, "we have the opportunity to develop and grow economically as a community."

Part of the money to be used for economic development will be to purchase land on Highway 200 (Ron Harrod Boulevard) and develop it as "ready" sites for industry.

This will make it easier to recruit industry since the area has now been annexed into the city limits and has water, sewer and electrical utilities in the area.

Cornelius said for every positive remark he had heard about tax, he had 10 remarks against.

The one-cent sales tax originally was passed by voters in the city of Prescott with $250,000 to go to the hospital. The city always gave the full collection to the facility. The tax was not county-wide.

The meeting will be in the meeting room at City Hall at 7:00 p.m.

The council approved three resolutions during its meeting.

First was a tele-communication resolution dealing with placing antennas or satellites on city property.

City Manager Larry Stockton sits on the board, which meets in Little Rock.

The resolution was drawn up by the Arkansas Municipal League which helps communities when approached by tele-communication companies.

These devicses are usually placed on water tanks, existing towers or other city owned property - for which the city collects a lease payment for that right.

Resolutions two and three are passed yearly by the council with the two local banks, dealing with depository agreements.

Council members amended the 1996 budget to close out the fiscal year.

Changes came in income for several departments as well as moving money from one budget to another. The budget is amended quarterly.

The 1997 budget was approved by the council (see related article) for all three city departments.

A new 3/4 ton heavy duty pickup was approved with a 7-1 vote. The vehicle is for the city's sewer department.

James Roy Cornelius voted against the purchase since the council had authorized a purchase for a used vehicle in the 1996 budget.

A one-year-old truck was not purchased by the council when put before them during 1996 for a $13,000 bid.

The new truck is a regular cab Ford from Prescott Motor Company and has a long wheel base.

The sewer department purchases heavy duty trucks for hauling some of its heavy equipment.