HomeMy WebLinkAbout1993-01-28 Minutes•
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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
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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.
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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
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The meeting adjourned at 11:24 a.m.