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HomeMy WebLinkAbout1993-01-28 Minutes• • • • MINUTES OF A MEETING OF TEE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, January 28, 1993, at 11:00 a.m. in Room 326 of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Marion Doss, Retiree Darrell Judy, Mayor Fred Hanna, City Clerk Sherry Thomas, and Administrative Services Director Ben Mayes. ABSENT: Danny Farrar, Pete Reagan, and Retiree Richard Baird. CALL TO ORDER Mayor Hanna called the meeting to order. MINUTES Doss stated on page 4 of the minutes, the date should be January 1983 instead of January 1993. Doss, seconded by Judy, made a motion to approve the minutes as amended. The motion was approved unanimously PENSION LIST City Clerk Thomas stated there were no changes in the Doss, seconded by Judy, made a motion to approve the The motion was approved unanimously. OLD BUSINESS ROY SKELTON CASE pension list. pension list. Doss asked if there was anything new regarding the Skelton case. Mayor Hanna stated he was not aware of any new developments. NEW BUSINESS ,SALES TAX DECISION Mayor Hanna stated he was sure everyone was aware of the recent decision on the sales tax lawsuit. He stated City Attorney Jerry Rose was working trying to determine the full implications of the lawsuit. Mayor Hanna stated there were three things outlined by the court the City has to do: 1) Settle with the plaintiff's attorney regarding his fees; 2) There were $33 million in bonds sold in 1990. Arvest is holding the proceeds, and there is enough available to retire the bond issue; and • • • January 28, 1993 3) Re -vote a 1% sales tax. Mayor Hanna stated he feels the citizens should be offered the new sales tax as soon as possible so that the capital improvements can be completed on a pay-as-you-go basis instead of by the bond issue. Mayor Hanna stated Ben Mayes has computed that on a pay-as-you-go basis, the same capital improvements projects can be completed in about 6 1/2 to 7 years rather than the 5 it was to have taken with the bond money. This will mean the citizens will be getting the same projects completed without having to pay interest on the $33 million bond issue. He encouraged the members of the fire department to visit with the citizens and help them understand that without re -voting the sales tax, the City will be basically crippled and unable to do any infrastructure maintenance. Mayor Hanna stated the City can increase revenues five ways: 1) cut services 2) raise taxes 3) raise fees 4) increase franchise fees to utilities 5) increase water and sewer rates If the sales tax is not re -voted, then taxes will have to be increased to be able to continue with the services of the City. In addition, there is the EPA mandated project for sewer rehab that has to be done. Mayor Hanna stated the City collects 3.8 mills on the property tax. He is proposing to eliminate this tax in exchange for re -voting the sales tax. The schools would then have the option of going to the voters to get an increase in their millage to apply towards the school construction projects. If the schools increased their millage by 3.8 mills, the net effect to the citizens would be no difference in the amount of tax they currently pay. Mayor Hanna stated he looked at the sales tax decision as an opportunity to do away with the bond issue and save the citizens 50% over the next 10 years by not having to pay interest. Doss stated he felt the pay-as-you-go method is much better. The 1% sales tax will be paid by consumers throughout the area and by users of Fayetteville facilities. Ben Mayes pointed out the 3.8 mills does not include the .5 mills dedicated to Police and Fire Pensions. Mayor Hanna stated this would be one of the main topics of discussion for the next couple of months, and he would certainly appreciate the help of the Fire Department in promoting the re - voting of the sales tax. • • • January 28, 1993 Marion Doss stated he had received a proxy from one of the pension fund investments. Mayes stated Merrill Lynch usually handles that, and he stated the Pension Board should just send him the proxy. ADJOURNMENT • The meeting adjourned at 11:24 a.m.