City Council President Monte Hodges spoke to the Blytheville Lions Club Tuesday in place of Mayor James Sanders, who is making the civic club rounds promoting the Blytheville 1-cent sales tax on the March 13 ballot. If passed, the tax will pay the city's debt of $3.8 million in back payroll taxes to the IRS. Early voting began this week.
Hodges said he hoped the citizens of Blytheville could find it in their hearts to set their differences aside and "step up to the plate," that investigations were ongoing that would eventually get the citizens answers to their questions, but until then, the city government feels that the tax is the "most quick and efficient way to pay this debt."
"This topic [the IRS debt] comes up everywhere you go," he said. "It's something we just have to face and deal with. We can't ignore the problem. We all have questions, and we are working diligently to make changes."
He added that the city is working on a "plan B" for the eventuality that the tax does not pass, but that it is the best option for several reasons.
"We don't want to sell our farmland," he said, "because they aren't making any more land. Once it's gone, it's gone, and that's a source of revenue for the city. And we don't want to see additional fees added to people's water bills or anything like that."
Hodges said that the city is in negotiations with the county to pay its jail fee debt, and that changes have been made to add accountability to the city's financial management system.
"For the first time in five years," he said, "the city didn't run a budget deficit in 2011. And we passed the budget, but weren't really satisfied. We intend to go back and make some more cuts."
He said if the tax does not pass, the Finance Committee could possibly be looking at having to make a 25 percent cut in the budget, which may result in cuts to city services.
"We don't want to use scare tactics, but this may be a reality," he said.
In response to questions from the audience, Hodges said that if passed, the tax will not extend past its proposed 15-month life, and if the debt is paid off early, the Council has plans to amend the tax so that it would end. Questions were also answered regarding the wording on the ballot, which makes it clear that the tax cannot be continued and used for any purpose other than satisfying the IRS debt.
He pointed out positive things going on in the city, such as the successful cleanup projects in 2011, and said, "If we love this city the way we say we do, we should come together in this time of crisis ... get through this together."
sharris@blythevillecourier.com