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[Lovely County Citizen]
Eureka Springs, Arkansas ~ Thursday, August 21, 2008
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Special election Tuesday, Aug. 12

Wednesday, August 6, 2008
By Don Lee

EUREKA SPRINGS -- Voters will have a big decision to make on Tuesday, Aug. 12. To split or not to split?

A special election is scheduled that day to decide whether to reallocate an existing one percent city sales tax.

Currently, 50 percent of the tax goes to water and sewer improvement, 40 percent to street construction, maintenance and drainage, and 10 percent for the purchase, repair and maintenance of fire and police equipment.

If voters approve the reallocation as the city is asking, 65 percent will go into the General Fund operating account, and 35 percent will be used for street and sidewalk construction, maintenance, repair, operating, street lights and drainage.

The reallocation is needed because in April, while investigating the legality of redesignating percentages of a 27-year-old, one-cent sales tax to cover a budgetary shortfall, the city discovered it had been in violation of the law for 20 years.

Wording in the original ordinance required a special election for future reallocation of the sales.

Should the reallocation fail, the city would be faced with overhauling the budget to compensate for the lack of funds going into the General Fund.

"This is not a new tax," said City Accounting Director Yvonne Kline. "We are just moving the money from one fund to another."

Early voting on the reallocation began Aug. 5 at both county courthouses.

Election day voting will take place at the Best Western Eureka Inn.



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