Tuesday night, the Blytheville City Council is expected to consider an agreement with the Arkansas Department of Finance and Administration regarding the excise tax debt.
Over a six-year period, the city of Blytheville failed to remit $967,002.97 in sales taxes on trash and sanitation services. Following negotiations with Mayor James Sanders and Finance Director John Callens, the state has offered to waive the $340,725.69 in penalties and three-fourths of the $330,272.36 original interest, shrinking a $1,647,000.87 debt to a $1,058,570.98 principal, if the Council accepts the deal.
On the table is a 30-month installment repayment plan that would begin on March 1. The interest rate would be 2.5 percent, rather than the original 10 percent.
Under the proposed deal, the state would refrain from filing a tax lien and instead allow the city to provide a mortgage to unencumbered real property that would be selected by the council.
Reportedly, the city has until March 1 to submit a written request for the mortgage to be given in lieu of the state filing a lien.
"If they put a tax lien on the city it would greatly limit our ability to obtain funds from outside sources like grants, issuing bonds," Callens said in January. "We're basically saying we have the collateral to put up in case we don't pay the debt. We have land that we can put up as collateral in case of nonpayment. When (the city) had the IRS tax lien put on, (the city) wasn't able to obtain any grants, anything like that over the two-year period."
Also Tuesday night, Blytheville Mayor James Sanders is expected to deliver his "State of the City" address.
Other items on the agenda include:
-- A resolution to amend the 2015 budget to show an increase in general fund revenues by $200,000 and increases in Fire Department ($80,000) and Police Department ($120,000) expenses. Another proposed amendment is a $300,000 increase in Street Department revenues as well as a $250,000 increase for equipment purchases and $50,000 hike in maintenance and repair expenses in the department.
-- Resolutions authorizing payment to the Blytheville Airport Commission for hangar and terminal projects.
-- A resolution condemning the following properties: 1705 Ash St., owner of record Kimberly Dubose and Ricky Hill, PO Box 1533, Blytheville; 1017 Ash, owner of record Michael Davis of San Bernadino, California; 1005 Ash, owner of record Fireplace Fellowship of Gallatin, Tennessee; 1709 Brawley, owner of record James and Betty Dixon, 1709 Brawley; 130 Dougan, owner of record Larry D. Reddick, 3379 E. County Road 346, Blytheville; 100 Rose, owner of record Alvin Jamison, 3301 Wynne Drive, Little Rock; and 105 Roosevelt St., owner of record Treather Smith, 811 S. First St., Blytheville.
mbrasfield@blythevillecourier.com