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HomeMy WebLinkAbout10-20-934 4 S Board of Directors Room City Hall, 500 W. Markham Little Rock, Arkansas October 20, 1993 - 4:30 P.M. The Board of Directors of the City of Little Rock, Arkansas met in Special Session with Mayor Jim Dailey presiding. City Clerk Robbie Hancock called the roll with the following Directors present: Directors Priest, Roy, Sharp, Lewellen, Mason and Adcock - total 6; Absent - None. With a quorum present, Mayor Dailey declared the Board of Directors in session, and stated the purpose of the Special Meeting is to discuss the sales tax election set for December 14, 1993 - whether or not to reconsider the two sales tax proposals as a result of the outcome of the special election held October 19, 1993. (Re: Convention Center Bond Issue - Ordinance No. 16,489, passed September 7, 1993, levied an additional one percent (1 %) hotel and restaurant gross receipts tax and called a special election for October 19, 1993, on the issuance of $30,000,000 capital improvements bonds for the City's Convention Facilities. The issue was defeated by a vote of 5,594 For and 7,649 Against.) Mayor Dailey explained that on September 29, 1993, the Board of Directors passed Ordinance No. 16,496, which levied a one -half percent (1/2 %) sales tax for operating purposes (with law enforcement being the top priority), and Ordinance No. 16,497, which levied a one percent (1 %) sales and use tax for 24 months for certain capital improvements. A special election was called for December 14, 1992 on the two tax proposals. Mayor Dailey stated the Board would be discussing whether or not to (1) remove the 1% tax proposal, (2) remove both the 1% and the 1/2% tax proposals, (3) leave them as they are, and (4) go with a 1/4% tax for law enforcement. He said that law enforcement is the number one priority of the Board of Directors; however, economic development issues are extremely important also. Mayor Dailey then opened the floor to discussion by Board Members. Directors Priest and Lewellen urged the Board to wait until the regular Board Meeting on November 2, 1993 make the final decision and were opposed to a 1/4% tax just for police. Mayor Dailey was supportive of repealing the 1% tax, but was agreeable to waiting until November 2, 1993 to make the final decision. Director Adcock supported the 1/2% tax and said "we need to decide now so we will have time to sell the package." Director Roy supported the repeal of both tax proposals, stating "the election yesterday sent a message - no new taxes." Director Sharp said "We need to listen to the constituency - crime is the number one problem," and supported the repeal of the 1% tax and keeping the 1/2% tax for public safety only. Director Roy recommended waiting until the four new directors are elected in November so they could participate in the process, and decide in 1994 on the kind of tax package. Vice Mayor Mason felt the Board was over - reacting within 24 hours of the election, and suggested that there be an open forum to hear from the people and then put this matter on the Agenda for the next meeting. Mrs. Ruth Bell, a member of the Future Little Rock Committee, urged the Board to keep the two issues together. She felt that separating the Convention Center "hamburger tax" from the other Future Little Rock recommendations made it harder to keep the other proposals together, and that the citizens did not have a clear understanding of what was on the ballot. 1 450 Minutes October 20, 1993 Other speakers were Ms. Johnnie Pugh (State Chairman of ACORN), Mr. Sammy Mills (Future Little Rock Committee), Mr. John Walker, and Mr. Michael Booker. Mrs. Pugh was opposed to the 1% tax, but supportive of the 1/2% tax for police. Mr. Mills said people do not understand the package, and getting information to the public is important. Mr. Walker and Mr. Booker urged the Board not to rush the decision because there are some good proposals in the package. Vice Mayor Mason suggested the Board set a public hearing following the Agenda Meeting on Wednesday, October 27, 1993, to hear from citizens regarding the two sales tax proposals. After a brief discussion, the Board agreed to start the Agenda Meeting at 3:00 instead of 1:30 and to schedule the public hearing for 5:00 P.M. on Wednesday, October 27, 1993. Mr. Odes Wilson, a member of the Future Little Rock Committee and a candidate for City Director Ward 6, urged the Board to educate the citizens and give them a reason to support the tax proposals, stating many citizens thought they were voting on the arena tax on October 19, 1993. Ms. Phyllis Henderson, a member of ACORN, said she did opposed to the convention center tax, but would support the 1/2% tax for city services and police programs, but "you have got to prioritize." She said ACORN would support the 1/2% tax but thinks it should be postponed from December 14, 1993. Mayor Dailey concluded the discussion by stating the public hearing on the sales tax proposals would be on Wednesday, October 27, 1993, at 5:00 P.M. following the Agenda Meeting scheduled for 3:00 P.M. (NOTE: No action was taken on the proposed Resolution to endorse a one -half cent City sales tax to raise funds that will assist in public safety programs, nor the Ordinance to repeal Ordinance No. 16,497 levying a one percent tax for capital improvements.) City Attorney Tom Carpenter asked for direction from the Board in order to prepare draft Ordinances and Resolutions for the Board to consider at the November 2, 1993, Board Meeting (an ordinance for a 1/4% tax limited to public safety, an Ordinance to repeal both the 1/2% tax and the 1% tax, a Resolution outlining how the monies would be used). Vice Mayor Mason also asked Mr. Carpenter to provide the Board with the pluses and minuses regarding the various sales tax proposals. There being no further business to be presented, the Special Meeting was adjourned at 6:30 o'clock P.M. with the Board of Directors to meet again in regular session on Tuesday, November 2, 1993, at 6:00 o'clock P.M. ATTEST: City Clerk Robbie Hancock 2 APPROVED: ff Jim Dailey