Council votes to increase sales tax

GENTRY -- With all council members present but Warren Norman, Gentry council members in attendance at Monday's meeting unanimously approved on their first readings ordinances to put a sales tax increase of 7/8 of 1 percent before the voters in November.

With rules suspended, both ordinances were read by title only and passed on a first reading, meaning they must be passed on two more readings before the measure will be put before the voters at the Nov. 4 election.

According to Mayor Kevin Johnston, the sales and use tax increase is being requested because of the many projects which the city needs to complete but lacks necessary funding. Johnston told council members that Gentry's tax rate is and has been, for some time, less than most neighboring cities. He said most cities collect 2 cents on every dollar, but Gentry only collects 1 and 1/8 cent per dollar.

"I can't think of a fairer way to pay the cost for ambulance service in the city," said councilwoman Janice Arnold, saying it would be better to tax all who do business in Gentry for the ambulance service than to raise property taxes.

The city has been paying an annual fee to Siloam Springs to provide ambulance service in the city, and that fee continues to rise to meet the cost to Siloam Springs to provide the service to Gentry.

Gentry City Council, in March, approved a memorandum of agreement with Siloam Springs, agreeing to pay Siloam Springs $25,000 for ambulance services within the city limits of Gentry for the current year. The memorandum says "the City of Gentry recognizes the need to create a built-in escalation mechanism for payment and will work toward providing a per household formula from which to calculate the payment in year 2016 and beyond."

With approximately 1,275 households in the city, annual costs for ambulance service could be near $83,000 if calculated at $65 per household, according to Johnston.

The first ordinance levies the additional 7/8 cent per dollar, subject to voter approval. The second ordinance requests that the special election to approve the tax increase be held in conjunction with the Nov. 4 general election.

The tax increase will be back before the council at its June meeting.

The council approved by resolution the adding of Tonya Carney's name to signature cards at the bank. The addition of her name is in preparation to her assuming the full duties as the city's director of finance on Jan. 1, 2015.

Johnston told council members the library architect and construction contractor had been contacted regarding the settling and the large plate glass windows on the south and southwest side of the building and a repair plan was being prepared at a cost which was projected to be slightly less than the $20,000 approved by the council for the emergency repairs at its April meeting.

Johnston said he is still waiting on the contracts from Kansas City Southern Railroad for the construction of sidewalk crossings at the railroad on South Collins. He said he anticipated the contracts soon so that construction could be completed on the city's sidewalk system.

Johnston also said final bid documents would soon be ready for construction of the fire department's Station 3, a substation to be built at the corner of Taylor Orchard and Marion Lee Roads. Current plans were to advertise in the end of May and accept bids up until June 5. Those plans depended on state approval of the bid package.

General News on 05/07/2014