The Voice of Van Buren County - March 9, 2021

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Of the people, By the people, For the people

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Pamela Ott

TUESDAY, March 9, 2021 / Vol. 7 Issue 10 / 75 cents

City alcohol taxes prove contentious by Adam Kuipers

The sale of alcohol in Van Buren County has created the potential for a new stream of revenue for local restaurants and retailers and the local government. Following the passage of the local option for alcohol sales, some municipalities within the County started considering ways to maximize tax rates on alcohol sales.

Fairfield Bay

At its regular meeting on December 14, 2020, the City of Fairfield Bay read an ordinance that would levy permitting fees and a 10% tax on all alcohol sales within the City. The proposed ordinance exacted the 10% tax on alcohol sales for both on-premises (restaurant) and off-premises (retailers, package sales) consumption. According to Fairfield Bay Mayor Linda Duncan, the City handed out the ordinance to everyone involved, including local business-

es. During a special meeting of the Fairfield Bay City Council on December 31, 2020, the City adopted the ordinance. Following the enactment of the ordinance, some businesses within Fairfield Bay approached the City with concerns about its taxes. A Special Meeting was held on January 20, 2021, during which many local businesses and individuals expressed their concerns with the new tax and the negative impact it would have upon the local businesses and economy. Following a spirited discussion, the Fairfield Bay City Council voted unanimously to amend the ordinance to eliminate the Supplemental Beverage Sales Tax and orally agreed to reexamine the issue at the end of 2021.

Clinton

At its regular January meeting, the Clinton City Council gave first reading to an ordinance that would levy fees and a 5%

Supplemental Beverage Tax upon alcoholic drinks. Unlike the ordinance previously adopted by Fairfield Bay, the proposal in Clinton addressed only those beverages sold for on-premises consumption. Prior to the second reading of the ordinance at its February meeting, the Clinton City Council voted unanimously to double the proposed tax to 10%, the State of Arkansas's maximum. The ordinance awaits its third and final reading at the March 11 meeting. Councilman Jeff Pistole sponsored the ordinance. Pistole also sponsored a resolution unanimously adopted by the City Council in October of 2020 wherein the council supported the passage of the wet/dry issue and expressed its desire to "relieve property owners of the burdensome property taxes that are currently being collected within the city on an annual basis." The council resolved to "conduct a

study of sales tax revenue" and "develop a plan to decrease the property tax millage," but only if the passage of the wet/dry issue resulted "in the addition of at least one package store being located within the City of Clinton." While the language in the resolution was explicit, Councilman Pistole was emphatic that his intent when sponsoring this ordinance was that the revenues generated thereby would be used to fulfill the resolution to reduce or eliminate City property taxes. "When we're sitting here at this time next year, I plan on saying we don't have any City property tax," Pistole stated at the February Council meeting. "I'm not passing this to say we got more money, I want to say we got more money from this thing that people don't have to have, and now we're not going to tax on this thing that people have to have--their property." "To me, and I'm the one that spon-

sored this ordinance, it's not about more and more money; it's about more money so we can give people a break over here." However, there did not appear to be a clear consensus on this point among the council during their discussion. "This is an opportunity for us to make money," commented Councilwoman Gayla Bradley during the discussion. "This is a way we could benefit a lot of our community; maybe we could get a pool. I mean, the sky's the limit!" Councilman Tim Barnes concurred with Bradley, "I don't think we know the limit." "I look at the numbers, and numbers don't lie." "I'm hoping to see what the numbers show us when we start actually collecting the tax revenue and if we need to earmark it, like we said if it comes down and we can't do this, but we can do that, and it benefits the City, that's what we need to do."

The Tale of

Two Cities

Unlike Fairfield Bay, Clinton currently has only one restaurant that sells alcoholic beverages. Private club alcohol sales in Fairfield Bay have been comparatively prolific in recent years. While Fairfield Bay originally exacted a permitting fee and taxes upon both open container and package sales of alcohol, Clinton has proposed no additional local fees or taxes upon retailers such as Wal-Mart, convenience stores, or grocers. Finally, unlike Fairfield Bay, which distributed its ordinance to local businesses for review and input, Clinton did not reach out to the one stakeholder in the City that would be affected by this ordinance.

The Human Element

Genevieve LaFargue is the manager of L'Attitude Bistro, currently the only restaurant in the City of ClinSee Alcohol on page 3

Local sales tax revenues up despite pandemic by Adam Kuipers

Justices Holt and Philips listen to presentation by Gaya Franks.

Commission discusses new Lease Agreement with Main Street Kidz by Warren Johnson

A structure in the Clinton Industrial park, constructed with grant money to be a child care facility, was the topic at a Van Buren County Building Committee meeting on Thursday evening. The building, which has served as a daycare for most of its

existence, was built during County Judge Robert Bogie Bramlett's term. Main Street Kidz, which operates as a 501(c)(3) non-profit, leased the county-owned building for one dollar per year, with the county responsible for maintaining much of the exterior of the building. Discussion

about lease renewal dominated the meeting. Committee Chair Dell Holt stated it is not forbidden for 501(c)(3) organizations to do business with the county, but it must be done correctly. County Judge Dale James comSee Lease on page 4

According to data reviewed from the Arkansas Department of Finance and Administration, sales tax revenues distributed to Van Buren County and its three incorporated municipalities mostly increased in 2020. The cities of Clinton and Fairfield Bay saw significant year-overyear increases. Van Buren County received $4,359,201 from its sales tax in 2020. While the Van Buren County sales tax rate was decreased by 25% in October of 2020, the county only saw revenues fall by less than 3/10% from 2019. The City of Clinton received $1,248,715 from its 1% sales tax in 2020, an approximately 8.5% increase in revenue from 2019.

Grace Crawford Has Broken Rebound Record

Grace Crawford of Bee Branch broke the rebounds record! The Lady Royals made another milestone by having their third consecutive week in the Top-10, which is the longest stint of any Ecclesia basketball program.

Grace Crawford of Southside-Bee Branch is attending classes at Ecclesia College in Springdale, Arkansas. Grace and Madison Bailey from Greers Ferry have been recruited this season for the women's basketball team, the Royals. Last year the team ranked two and twenty-two. This year the team had the best

start in school history for women's basketball, winning the Regionals, and are headed to the Nationals in Indiana! Grace has broken the rebounds record in a game with eighteen. The Lady Royals made another milestone by having their third consecutive week in the Top-10, which is the longest stint of any Ecclesia basketball program.

Comparatively, Clinton only saw a 6.1% yearover-year increase in revenue in 2019. The City of Fairfield Bay received $480,893 from its 2% sales tax in 2020, representing an increase of more than 20% over 2019 revenues. Fairfield Bay only saw a ½% increase in revenues from 2018 to 2019. The City of Shirley was the only municipality that did not see year-over-year growth in revenue in 2020 that was larger than the previous period. Shirley received $37,656 from its 1% sales tax in 2020, a little more than 5% over 2019 revenues. Shirley experienced an increase in revenues of slightly over 6% from 2018 to 2019. The Van Buren County sales tax rate

decreased from 2% to 1.5% in 2020. In October, a 1% sales tax earmarked for construction at the county's hospital expired, and a ½% tax approved by voters in March for county Volunteer Fire Departments and the Rescue Squad was enacted. Van Buren County voters approved an issue in the November General Election that allows alcohol sale in previously "dry" Van Buren County. Proponents of the issue touted a new product's economic benefit to generate additional tax revenues for the county and its municipalities without increasing any existing rates. Opponents claimed that increased law enforcement costs would outpace whatever economic gains might be realized.


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The Voice of Van Buren County - March 9, 2021 by The Voice of Van Buren County - Issuu