Nevada County Picayune and Gurdon Times Newspaper Archive

One Cent Sales Tax Continues As Benefit To Prescott Programs

Prescott's one-cent sales tax for the defunct hospital has a confusing history.

This, according to Prescott Mayor Howard Taylor, creates speculation throughout the city.

The tax was passed Oct. 18, 1988 by voters in Prescott. The ordinance title reads: "Whereas, the laws of the State of Arkansas authorize cities to adopt a local sales and use tax in order to provide a stable source of revenue and finance local government services; and Whereas, there is a great need in the City of Prescott, Arkansas, for additional revenues to assure the continued operation and maintenance of the Nevada County Hospital under an Interlocal Cooperation Agreement between the City of Prescott and Nevada County, and for other municipal services within the City of Prescott, and there are not sufficient funds available for the city for these purposes..."

In the wake of the hospital's closing the city is challenged by numerous obstacles for basic survival as a city, Taylor said. "We must strategically invest the one-cent sales tax to become more competitive and attractive to existing business and industry and recruited business and industry, to reestablish our tax base and grow our local economy."

Taylor said he doesn't like taxes any more than anyone else, but this tax is necessary for Prescott's future.

"We are not alone in the collection of similar taxes," he said, citing Warren's one-cent sales tax with most of the funds collected devoted to economic development.

"Two hundred forty-eight cities and all counties collect an additional sales and use tax for either economic development or other uses," Taylor said. "Without this tax numerous projects would still be in the talking stage, instead of the action stage."

He pointed out the current water and sewer project underway, and the fact the city is working to build a state-of-the-art industrial park along Ron Harrod Drive. This, he said, is a $2.5 million project the city only put $112,000 into.

He said new sidewalks, necessary for beautification and improving the quality of life, are being built with money from the sales tax.

This tax, he continued, helped with a matching grant from the Arkansas Department of Health to purchase much-needed medical equipment for area nursing homes, area doctors and the Nevada County Ambulance Service.

This money, Taylor said, has also helped pave new roads and give existing roads needed patch work.

"Instead of asking why are we collecting a tax?" Taylor reasoned, "I believe the question is better stated as: What could we do without this tax?

"I understand nobody likes taxes, but I also understand if we are going to improve and become, once again, the shining city on the hill, we hopefully envision, we must invest back into our community. I ask you to stand with me and support the strategic investment of your money."

Taylor has denoted the use of the tax for 1997 in an easy-to-read pie chart. The tax generates an estimated $350,000 annually.

Under Taylor's plan, the lion's share of the revenue, 42 percent, would be devoted to economic development. "The Interlocal Cooperative Board funding the Prescott-Nevada County Economic Development Office," he said, "has and will continue to make a positive return on the investment. They are the backbone of our economic future, and we must adequately fund this board and help establish it as an instrumental organization.

"This budget is being increased to purchase industrial property needed to successfully accomplish its purpose -- industrial attraction." The saying, he said, still rings true about not being able to sell from an empty wagon.

"We must have a publicly owned industrial park," he said.

The next largest application of the revenue would be the area of city beautification. This project would receive 19 percent of the funds generated from the tax.

"City beautification and revitalization are necessary to maintain and improve the quality of life so current citizens are happy and excited about living in Prescott," Taylor said, "and so new citizens are able to enjoy our city."

Project to be started or funded through the beautification effort include: park benches and flower planters in and around the downtown area; the beautification of the corner of Highway 67 and Main Street; the attraction of downtown festivals in an effort to attract business back to the downtown area; and the creation of a city beautification committee to plan monthly events to improve the city and make it more attractive.

This effort, Taylor said, will be administered primarily by volunteers, but they must have funding to be successful, he added.

Healthcare will receive 14 percent of the pie.

Taylor said the city will do everything in its power to restore emergency health services to the citizens. In addition, some of the $49,000 of this portion, will be used as a procurement measure to attract at least one badly-needed new doctor.

These funds will be set aside to go with possible matching grants and fund a new rural health clinic.

"We must tackle the problem of healthcare head on if we are going to overcome the loss of our hospital," he said.

Parks and recreation is the fourth area to see increased funding for 1997, as 11 percent of the sales tax will be used here.

The city, EDO and Potlatch, Taylor said, are working in cooperation to build another park, complete with a softball fields, tot park and volleyball courts for the benefit of all citizens.

"This investment," he said, "will improve our outdoor recreational opportunities and again improve our overall quality of life. This is an estimated investment of 11 percent leveraged with in-kind labor and matching grants."

Taylor points out Prescott Elementary School only has one computer available for classroom use.

"I stress this is not the fault of the administration or school board officials, but the lack of funds," he said.

In a time when state and federal funds are shrinking, to fund education and educational materials, he continued, the citizenry owes it to the children to invest in their future.

"We intend to invest 8 percent in the Prescott School System," he said, "to purchase new state-of-the-art computers for our children so they are able to have the basic skills necessary for success in the 21st Century."

Some of these funds will also be used for vocational training to purchase badly needed equipment to teach students skills to become employable, he said.

"Let's not be coy," he continued, "this money does not solve computer or vocational deficiencies, but it does take a small step in the right direction.

"With continued yearly investment, coupled with grants researched by the EDO, we can begin to meet the challenges facing our schools and our children.

"Our school system is a strong asset to the community, and we must pull toget