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03 FEB 11 SPECIAL.doc CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. SPECIAL CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in Special Session on February 11, 2003 at the regular meeting place of the Council. Alderman Smith delivered the invocation and Mayor Swaim led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Smith, Lewis, Sansing, Wilson, Fletcher, Stroud, and Twitty answered roll call. Mayor Swaim also answered roll call declaring a quorum. Aldermen Ray and Howard were absent. PRESENT eight (8), ABSENT (2). Others present for the meeting were: City Attorney Robert Bamburg, Deputy Clerk Teresa Carter, Finance Director Paul Mushrush, Parks and Recreation Marketing and Public Relations Manger Annabelle Davis, Planning Commission Chairman Art Brannen, Chamber of Commerce Director Bonita Rownd, Mr. Mike Wilson, Mrs. Lindy Lewis, Mr. Ben Rice, interested citizens and members of the press. GENERAL: PRIORITIES DISCUSSION Mayor Swaim stated that the purpose of the special called City Council meeting is to set priorities regarding specific projects brought to City Council. He related previous discussion regarding the possibility of a hotel/motel tax to promote the City and a historical museum. He pointed out that the list provided is more of a scheduling issue regarding the best time emphasis should be placed on each project, explaining that the importance of timing is the critical issue as opposed to the importance of each project. He noted that each project stands on its own merit. Alderman Wilson related that his and Alderman Fletcher’s concern was the timing of each project, regarding when the question of a proposed tax should be put before the public. He related the need to look at the advertising and promotion proposal and the most effective timing for each project. He stated that he agrees with Alderman Fletcher’s statement that the current implementation of a hotel/motel tax could affect passage of a sales tax later. He related the need to review which projects would need to be funded either temporarily or permanently through an additional sales tax and the best time to place those on the ballot regarding the implementation of the hotel/motel tax. Mayor Swaim reviewed the list regarding the educational facility, pool, museum, separate school district, City operations and possible other projects mentioned at City Council meetings. Discussion ensued regarding results from the survey, and Mayor Swaim related that the projects listed were some of the types of responses most commonly found in the survey. In response to a question from Alderman Sansing, Mayor Swaim stated that the survey data is difficult to compile given that the answers were 1 comment rather than category yes or no questions. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. Discussion ensued regarding individual project costs, Mayor Swaim related that the commitment for the Joint Education Facility requires that the Little Rock Air Force Base and the City each contribute five million dollars. In response to a question posed by Alderman Wilson, Mayor Swaim related that the City would not be responsible for funding efforts regarding a separate school district. He added that the school district was included in the list because it could possibly be voted on by the public later this year. He clarified, holding that election close to another election asking for new funds could possibly be detrimental to the school system. Alderman Wilson stated that there has been some thought of having the th election for the separate school district on September 16 when the regular school election is held, adding that it would not affect taxes. He then added that there has also been some discussion to hold the election for a temporary sales tax regarding the education center at that same time. Mayor Swaim acknowledged a letter from Mr. Mike Wilson, Chairman of Joint Education Facility Committee saying that sometime in the near future the Committee would petition the City Council for a special election. Mr. Mike Wilson related that the letter was written to raise some thought regarding several issues that interest the entire community and in an effort to prevent any misunderstanding surrounding those issues. He stated that originally he had thought since a special election regarding a temporary tax for the education facility would cost money and there was a school election in September, that it would make more sense to try the proposed temporary sales tax at the same time. He added that it has been suggested that with the separate school district proposition working at the same time, it might not be the best time to try for a temporary tax. He stated that it is not the desire to jeopardize either one. Discussion ensued regarding time of the proposed temporary sales tax and the costs associated with a special election, Mayor Swaim related that costs could range between six and ten thousand dollars. Mr. Mike Wilson stated that he had written the letter to bring some thought to which project should come before the next and how best to give each the best advantage. He added for the benefit of those not familiar with on-going efforts regarding the education facility, that the Committee has repeatedly tried to secure grant funds from various foundations without any luck. He then stated that efforts by the Air Base are proceeding favorably in accordance with normal request for military construction and budget items. He pointed out that efforts are moving together, but it would be best to discern what is the most 2 expedient way for each project to succeed. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. Chamber of Commerce Director Bonita Rownd questioned if Congress would be more likely to fund its portion sooner if Jacksonville has secured its match. Mr. Mike Wilson stated that he can appreciate the immense difference it might mean to the local citizens in an election if they knew that the 5 million dollar match from Congress had been granted. He added that in his opinion it would be easier to pass the tax if the congressional money had been secured. He then answered that he believes Congress would act quickly if all proponents were in place, adding that they have consistently worked with the Congressional delegation and they are waiting for word to push forward. He stated that there would need to be some recommendation consistent with the other projects under consideration. Discussion ensued regarding the proposed temporary tax and Mr. Mike Wilson related that a one-cent tax for two years could produce approximately 5 million dollars. Mayor Swaim mentioned other items that were previously funded with a temporary tax, adding that it is a vote of the public and there is no guarantee that any of these projects would pass. He stated that the question tonight is when should the public have the opportunity to make their decision. Alderman Wilson stated that he believes the separate school district is the first priority even though the City does not have any direct involvement, adding that attempts should be predicated to accomplish that first by not creating any problems for the separate school district. Alderman Smith agreed that a special election for the education facility should be held so as not to confuse the regular election in September regarding the new school district. He added that he also serves on the Joint Education Facility Committee and believes that with good advertising and management it would pass. Mr. Mike Wilson pointed out that it may be better not to discuss a temporary tax for the education facility in advance of the separate school election. He stated that he could see how that might negatively influence voters regarding a separate school district. He stated that he hates to put off the education facility, but at the same time no one wants to jeopardize the possibility of a separate school district. Alderman Fletcher noted the importance of a previous study conducted by Jonesboro regarding communities that do not have a college, concluding that 40 to 50% of high school students that go to college drop out but 3 communities with colleges have a higher rate that remain in college. He stated that securing matching funds for the Joint Education Facility should be given highest priority. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. In response to a question posed by Alderman Sansing, Mr. Mike Wilson stated that efforts regarding the Joint Education Facility have been on- going for approximately one year. Discussion ensued and it was suggested to postpone the Joint Education Facility a while longer in order to avoid confusion regarding efforts for the separate school district. The public’s perception regarding taxes was then discussed, mentioning possible confusion over the proposed hotel/motel tax. Alderman Stroud agreed with the need to set priorities, but disagreed that the hotel/motel tax would confuse Jacksonville residents that it would be a tax directed at them. He added that he could understand citizens being confused about the education facility and the school district. He surmised that most people have traveled enough to know that they pay a hotel/motel anywhere they go. He stated that he would like to discuss the museum and then work on the priorities. He related that regarding the pool, there is $500,000 that will either have to be used or returned. Mayor Swaim noted that $213,000 would have to be returned. Alderman Smith related that the two-cent hotel/motel tax was proposed at the last Council meeting and is coming up for a vote next week. He stated that the museum would be an attraction to bring tourists to Jacksonville, adding that he does not believe citizens will have difficulty understanding the purpose. He related that a seven-member Commission would decide fund ratio, adding that he feels it would be important if it passes to have three members from the City Council on the A & P Commission, the Mayor and two Council members. Alderman Sansing pointed out that the proposal would fund a Tourism Commission not a museum commission, adding that Jacksonville has some of the best parks that host many tournaments that bring visitors to town. He stated that some of the money could be used to promote local events. It was clarified that the information provided would reflect a 2% tax at an average of $48,575 for the year 2001 and 2000 would have been $61,713 and that to charge a 3% tax on hotel/motel would require a vote by the general public. Parks and Recreation Marketing/Public Relations Manager Annabelle Davis stated that the hotel/motel tax funds would be administered by an Advertising & Promotion Commission, explaining that various entities could apply for funds regarding a particular project. She acknowledged Mr. Rice’s work over the years toward securing a military history museum 4 for the City, mentioning the air show, festivals, and that many of the activities found in the survey could benefit from the A&P Commission. She related that the Commission could address avenues for informing the public of events scheduled for Jacksonville, pointing out that brochures and rack cards could be made available in local motels and restaurants CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. regarding the historical museum, Reid’s Bridge, ball tournaments, the festival, or packets could be sent regarding inquires handled through the Chamber of Commerce for people interested in relocating to Jacksonville. She related that Mr. Barry Travis, a speaker at the Chamber of Commerce Tourism Committee, had pointed out that Jacksonville should to take advantage of larger events such as the Presidential Museum and the Global Village through Heifer Project World Headquarters. She stated the value of having information available to entice visitors to stay in Jacksonville while they are visiting other events, and to entice new business, possibly a tour business operation to leave Jacksonville at certain times and take groups to see the events. She concluded saying that there are many outlets to promote facilities and attractions in Jacksonville. Alderman Lewis agreed that citizens would understand the purpose of the hotel/motel tax and believes it would have benefited the City to have established a hotel/motel tax a few years back. Mr. Jay Hudson questioned if the Joint Education Facility had tried to receive a grant from the Walton Foundation. Mayor Swaim related that the Commission had not only applied there but to the Reynolds Foundation and numerous other organizations. He stated that it presents a different set of circumstances because it is a joint effort with a military installation, and would be on military property. Discussion ensued regarding other entities that could apply for funds from the A&P Commission and Alderman Smith pointed out that the Senior Center, Boys and Girls Club, Parks and Recreation, and Chamber of Commerce are all considered a part of tourism. Alderman Stroud made a motion to support the two-cent hotel/motel tax and form the Advertising and Promotion Commission. Alderman Smith asked Alderman Stroud to wait until the next City Council meeting regarding the presentation of an Ordinance. Alderman Stroud withdrew his motion. Chamber of Commerce Director Bonita Rownd suggested that the City Council consider passing the addition of a restaurant tax with the hotel/motel to accommodate funding needs more adequately regarding efforts to promote Jacksonville. 5 Alderman Stroud stated that Mrs. Rownd makes an excellent point but believes the City Council is considering other options to raise funds to accomplish other things. He stated he is not ready to consider a restaurant tax at this time. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. Chamber of Commerce Director Bonita Rownd stated that it was discussed at the Tourism meeting that it might be good if the City proposed two ordinances, one for the hotel/motel and one for a restaurant tax and let the citizens decide. In response to a question posed by Alderman Wilson, Mr. Rice related that a one-cent sales tax on prepared food would have generated in 2001 approximately $185,000 and $236,000 in 2000. Mayor Swaim reminded Council that a restaurant tax would affect local citizens, and was proposed and defeated in the past. Discussion further ensued regarding confusion over proposed taxes, the public’s perception regarding taxes and the issue of the education facility if a one-cent food preparation tax is proposed. In response to a question posed by Alderman Fletcher, Mayor Swaim related that the source of revenue being considered for the pool is the use tax, if the court rules favorably, depending if it is retroactive. He noted that user fees would not pay for construction, adding that the City could do five-year short-term financing and then use the tax to pay the balance. He stated that the City has roughly a fourth of needed funds through grants and set aside money. Discussion ensued that there was not a plan B, unless the City Council is prepared to ask for a sales tax. Mayor Swaim related that the Commission was approached regarding their feeling about campaigning for a sales tax, adding that the Commission did not do that and did not provide strong support from the public that a one-cent sales tax was wanted. He stated that we have an indoor pool but do not have an aquatics facility such as the one being proposed which has been successful in other cities. Alderman Wilson warned of the possible perception citizens would derive from the newspaper headlines regarding the passage of a two-cent hotel/motel tax. He reminded everyone of the confusion surrounding the annual millage ordinance regarding the Fire and Police Pension Fund. He stated that it would be naïve to think that people would not remember that a new tax was passed even though it did not directly affect them. Alderman Twitty stated that she felt the citizens would be able to 6 discern a hotel/motel tax and understand that it would not affect them. She added that it is the media’s responsibility to explain fully that it does not affect the citizens. She stated that she felt it would be good to pass the hotel/motel tax and not return to tax issues until after the separate school district election, which is top priority. Mayor Swaim noted the last item on the list regarding City operations, saying that based on revenue projections the City must have some new income or the economy would have to improve greatly to sustain present services. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. Mayor Swaim paraphrased consensus to pass the hotel/motel tax, then the separate school district, followed by the public’s decision regarding the Joint Education Facility. Alderman Twitty reiterated that she feels the public will understand that the hotel/motel tax does not affect local citizens and that the tax would not affect the separate school district, which she considers to be first priority. Alderman Fletcher stated the importance of informing the public regarding the issues. Discussion ensued regarding the Martin Street Pool, it was noted that a possible final waiver was granted last year. Alderman Sansing stated that it was assumed that it would be closed this year because of construction. Discussion of priorities ensued and it was questioned if a vote for the hotel/motel tax places the museum first, then the school district, then the Joint Education Facility. Alderman Sansing stated that it has more to do with scheduling; pointing out that there is approximately seven months till the separate school district election. He stated that it would allow time for people to have any misinformation cleared up regarding the hotel/motel tax. He stated that the separate school district issue will require campaigning, while currently the City Council can take care of business by providing for a Tourism Commission. He stated that following the school election a temporary tax with a sunset clause can be proposed for the Joint Education Facility and a one-cent sales tax for City wide operations. Alderman Stroud pointed out shortfalls of approximately $723,000 that the City must cover, saying that if the City proposed one election issue it may take longer than a two-year sunset clause to cover the 2.9 million dollars needed for the shortfall and the center. Mayor Swaim expressed concern that coupling the issues might present a 7 confused ballot because the ballot would have to say that it was for a Joint Education Facility and for City operations. He stated that it might convolute the ballot. Alderman Elliott stated that he feels each issue should be kept separate to avoid jeopardizing any one of the projects. Mr. Mike Wilson stated that he feels the discussion has been forthright and useful, saying that it may tell the Joint Education Facility Committee that they may need to wait until after the separate school district election and maybe somewhat beyond that until everything calms down. He noted that even when the election takes place it will be another year before the new school district is up and running. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. Mayor Swaim noted that the election is only the second hurdle regarding the separate school district. Mr. Mike Wilson stated that no one wants to jeopardize any of the projects by pushing too fast, adding that it is a scheduling issue and not necessarily what is more important regarding one project to the next. Mr. Ben Rice showed artifacts collected for the museum, pointing out a German Officer Dress Dagger, Japanese Flag captured in WWII, hardhat belonging to the Colonial that commanded the squadron of the missile silo that blew up at Damascus and noting that all members of the squadron had signed the hat. He explained that the Japanese flag captured in WWII has good luck wishes inscribed on the flag and they are trying to get it interpreted. He stated that they have a collection of 50’s WWII posters. Mr. Rice then agreed that the separate school district is the most important issue for Jacksonville, adding that he would rank the education facility as the second most important. He added that he does feel the museum is very important in its own right because it is the only issue that is a tourism item that would bring people into Jacksonville. He stated that if it were up to him the museum would be built and in operation by May 31, 2003, the same day the Air Show takes place. He stated that if the tax were passed the museum would negotiate with the Advertising and Promotion Commission for a part of the money to make the museum more financially feasible, adding that the Museum Commission is aware of other things in the City that need to be promoted as well. He then related that all of the motel owners have recommended the hotel/motel tax, recognizing that they need something to bring people into town to stay in the motels and that in their letter they recognized the museum as their best prospect for that. He encouraged the City Council if the ordinance passes to appoint at least two motel people to the Commission as he had promised. Alderman Smith noted that the ordinance requires anyone appointed, owner or manager, must be a resident of Jacksonville. Discussion followed as 8 to whom that might affect in the Jacksonville hotel industry. Mr. Rice stated that he believes everyone recognizes that visitors to the City, not citizens, will pay the hotel/motel tax. He added that if the Ordinance is passed now, by the time talk begins regarding other issues people will come to realize that is the case. He surmised that the earlier the Ordinance is passed, the less interference it will have regarding other projects. He promised that if the ordinance is passed his group would act as quickly as possible to get the museum open. He stated that he would appreciate the Council’s favorable action. Mr. Rice stated that he was at that Chamber of Commerce Tourism Committee meeting when the restaurant tax issue was discussed and it was made clear that the museum people are not asking for a restaurant tax, adding that as little as the hotel/motel tax brings in, it will suite their needs. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING FEBRUARY 11, 2003 7:00 P.M. – 8.09 P.M. Mayor Swaim pointed out that passage of a new tax of any kind would generate additional work for some City departments, mentioning the Finance Department and the City Clerk’s Office. He stated that he felt the discussion has been beneficial, providing some direction. Parks and Recreation Marketing/Public Relations Manager Annabelle Davis stated that she would be remiss if she did not address the pool, adding that the City Council has seen preliminary drawings. She stated that it would be very unique and bring a lot of people to Jacksonville. She added that it has been termed by some as a “mini Wild River Country” because of the diversity of three different pools and the way it addresses different segments of users. She pointed out that the new facility would attract four to five times as many people during the season than the standard concrete pond, because of its uniqueness, and it will be far more affordable than Wild River Country. She stated that the pool facility does merit some attention and would promote bringing people to Jacksonville. Alderman Fletcher stated that if the use tax does not succeed for cities, sooner or later the pool issue will have to be addressed. He added that he would prefer a back up plan even if it is a sales tax. Discussion ensued and Mayor Swaim stated that the pool would not generate enough funds to promote a revenue bond. Alderman Fletcher stated that even though people are generally against taxes, if you show them all the things that can be accomplished with the 2.9 million as well as balance our books and still provide services it offers them understanding. He stated that citizens of Jacksonville have a lot to be grateful for, pointing out that Jacksonville is the only city that provides twice a week garbage pickup, is debt free, has good facilities, and one of the best infrastructure systems in the State. He added that with the addition of a school district and the belt loop opening, he could not envision people wanting to live elsewhere. He stated that it is time for Jacksonville leaders to provide a future 9 direction. He stated that citizens want to be educated, lay out a course in plain English and you can be successful in anything. Alderman Stroud related that the City shortfall has not been discussed, adding that we are looking at three different taxes for proposal in the next year to two years. He stated that the citizens wanted pay raises for the Fire and Police, which has impaired the City to come up with the $450,000. He added that the $807,000 has not been discussed. ADJOURNMENT: Mayor Swaim without objection adjourned the meeting at approximately 8:09 p.m. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 10