The discussion among citizens and officials was wide-ranging, addressing subjects from the sales tax rate in Hope to the timetable for the project being finished to ways local and minority-owned businesses can get in on the construction work.
The meeting began with the showing of a video, produced by SWARK.Today’s marketing shop, that features interviews with several Hope residents expressing their support for the one-cent sales tax. It also explains each of the three ballot items that will help finance the plan.
Issue 4, the video explains, would allow for the collection of a 1/4 cent sales tax to maintain and operate the aquatic and recreational center. Issue 5 approves the building of a new fire department headquarters. Issue 6 approves the building of the aquatic and recreational center as well as improvements to Fair and Northside Parks. Issues 5 and 6 would be financed with a shared 7/8 cent sales tax that stops being collected when the buildings are paid off.
After the video was shown, Assistant City Manager Daniel Shelman hosted a question and answer session. As attendees asked their questions, Shelman, City Manager J.R. Wilson, Parks Superintendent Summer Chambers, Mayor Don Still and City Director and Former Mayor Steve Montgomery provided answers.
Shelman began the discussion period by saying that while it would have been simpler to place the whole proposal in one ballot item, this was not possible due to state law. He also referred the audience to a website where they could learn more. “If you go to the website, our city website, hopearkansas.net, we've got some more information. We've got some images of what the fire station would look like, and a Frequently Asked Questions page. There’s our facebook page as well.”
The first questioner asked where the addition of a splash pad to Northside Park would be placed on the list of priorities.
Shelman explained that Chambers has applied again this year for grant funds from the state to fund the splash pad. Hope’s application for this has twice been turned down and it will be known by the end of this year whether Hope has finally won the grant. If so, the splash pad could be built sooner than the other items in the Hope for the Future plan.
“This will pay off that much quicker,” Shelman said, referring to the fire department headquarters, the aquatic and recreation center and the park improvements. “So if we get that grant, that splash pad will happen even quicker, and these funds won't be required to pay it off.”
Later in the meeting, City Manager J.R. Wilson said, “I think the splash mail would be a really quick thing, because a splash pad doesn't take a lot of engineering.”
The next questioner asked whether food trucks that come to Hope would collect the sales taxes and when construction would begin on the projects. Shelman said they would. He added that the total sales tax increase would be one cent at the most, but if only the initiative to fund the fire department building is passed, 7/8th of a cent would be collected.
Concerning the startup date for construction, Shelman said, “That's kind of still to be determined.” McClelland Engineers will be in charge of making those decisions based on the availability of workers and equipment.
Another questioner said the funds for the splash pad had been received but spent on street projects. Chambers said this was not so, that funds for a splash pad had never been received and had not been spent. She said the lack of success in applying for grants for the splash pad is likely because of Hope’s prior success in winning grants to fund the building of the The Hub’s pavilion, Pocket Park and additions to Northside Park.
Shelman added that because the splash pad is included in the ballot language, Arkansas law requires that if that issue passes, the splash pad must be built. (It is included in issue six.)
Steve Montgomery said there were also state laws requiring that grant funds received not be used by cities and counties for expenses they were not designated by the state government for.
The questioner then said that the residents of Hope pay a higher sales tax than residents in nearby counties. “Taxes are high already,” he said. “Where does that money go?”
Shelman said the current total sales tax in Hope is nine and a half cents. This figure includes state and county taxes.
“That’s high. That’s really high,” the questioner said.
The government of Hope currently charges a one-percent sales tax. The county charges two percent. Six and 1/2 percent goes to the state.
“It's not higher than surrounding areas,” Shelman said of the total sales tax rate. “It's pretty average. I don't have it with me, but there's towns as high as 12 percent, and I think you might find one or two here and there that might be eight and a half … If we had a cent, we'll be at 10 and a half. So that is not a abnormal amount of tax. It’s pretty standard.”
The latest report from the Arkansas Department of Finance and Administration on the sales tax rates charged by Arkansas cities shows Hope currently at one percent, or one cent per dollar. Hope, Lewisville, Mineral Springs, Rosston, Fouke, Stamps and Nashville charge a sales tax of one percent. Camden and Hot Springs charge 1.5 percent. El Dorado charges 1.25 percent. Camden and Conway charge 1.75 percent. Arkadelphia, Ashdown, Caddo Valley and Prescott charge two percent. Magnolia charges 2.375 percent. Texarkana, Arkansas and Benton charge 2.5 percent. Bryant charges three percent.
The questioner then asked how much money an additional one cent tax would raise.
Shelman said it is not completely certain but it is thought the tax would bring in about $2 million a year.
Montgomery pointed out that a one-cent tax to fund the renovation of the building that became the Hempstead County Courthouse has expired because the work has been fully paid for. The tax stopped being collected in 2022.
Shelman reiterated that when the fire department headquarters and the aquatic and rec center are paid off, the 7/8 cent tax also expires. The 1/8 cent to maintain the aquatic and rec center will be permanent.
A questioner asked the cost of the entire Hope for the Future project. Shelman said that for the projects funded by the initiatives the cost would be a little over $30 million. Mayor Still pointed out that the projects funded by the initiatives on the November 5th ballot would not be the only projects the city hoped to complete over the next decades.
Shelman said it is expected that paying off the projects in the initiatives will take between 17 and 22 years.
It was then asked whether that would be how long it would take to complete the projects. Shelman said “If it passes, we won't have any revenues come in until next spring. Then they'll start trickling in, and then we'll get some bonds, and then that'll fund this. That's a big loan that'll fund this. And then it'll take a few years for construction. I think we were talking about a good goal would have everything built and opened by 2030 if not sooner.”
The questioner said she thought the soccer complex, having had recent work done to address drainage there, is done.
“There will be a huge renovation,” Shelman said, adding that the splash pad is a “very small part” of what will be done, if the initiatives pass, to improve both parks.
The questioner asked whether additional public meetings would take place in which citizens could offer feedback about what would be included in the projects.
“There will be many meetings. We'll regularly discuss this in the City Board meetings. And this will be a process. There's still a lot of design work to be done, implementation,” Shelman said.
The questioner asked whether additions to the plans in the initiatives could be made, such as an amphitheater at Northside Park.
City Manager Wilson said, “This master plan, if you look at it, has trails. That's not all going to get done with this initiative. The whole master plan was $45-50 million.”
The comment was made that Northside Park does not have a swimming pool. At this, Wilson said the splash pad would likely not take long to build.
Then the question was asked where the aquatic and recreation center would be built.
Mayor Still said it would be built on the intersection of 16th and Spring Hill Road near the baseball fields there.
Next the question was asked about who builds the projects. “who determines who makes all this? If it costs $30 million, you got $30 million going out. Who determines who makes that $30 million?”
Wilson responded here, explaining that city will borrow the $30 million if the initiatives pass, a process that will likely take about six to eight months. “Then we just pay it back every year, just like a loan, like you pay on your car payment. We're paying it back each year with the tax money that trickles in.”
The questioner specified he meant to ask what companies will be involved in building the projects.
Wilson explained that the city has already hired an engineering firm, McClelland Engineering, to create designs and estimate the costs of the projects. The splash pad would not take as much time, he assured. “On the big stuff, the engineers would have to draw it all up, and then they would bid it out to follow the Arkansas law, and then the contractors would bid on it. Then the board would select a contractor. Then once the contractor is selected, we'd have a pre construction conference. After that, it's sign all those contracts.”
Sylvia Brown, NAACP Hempstead County Chapter President asked whether there would be efforts to contract work with minority-owned businesses.
Wilson said the City Board has the discretion to choose a local business to work on the projects if its bid comes within a certain percentage point of the lowest bid.
A questioner asked how he could bid on the work. Wilson said they could talk after the meeting about making sure the questioner received requests for bids generated by the city.
Another questioner said clothes-sellers and restaurants were leaving Hope and asked whether the Hope for the Future projects could succeed given those circumstances. Mayor Still said that the presence of the aquatic and recreation center would be a draw to businesses considering where to locate their facilities or their store fronts.
“When they come to Hope, [the Hempstead County ] Economic Development [Corporation] shows them what we have to offer. This [project] is what young people are looking at. They're looking at how much recreation they can do. This is a tool for our economic development [corporation] to bring businesses to keep people eating here and bring other businesses in. All I have to say is go to Arkadelphia, go to Benton, go to Conway, and you'll see what we're trying to do here.”
The meeting drew to a close at 8:00 p.m. The officials present asked anyone who had any additional questions they wished to ask in private to speak to them afterward. These conversations continued until about fifteen minutes after the public meeting ended.
