City of Manila leaders answer questions about tax extension

A small crowd gathered at the Manila Airport/Community Center on Tuesday for an informative public meeting to discuss refinancing existing bonds and extending a one cent sales tax to fund several projects.

Mayor Wayne Wagner introduced Jason Bennett, Manila Pilot's Association president. Bennett shared a short video of an upcoming premier air show, Tora, Tora, Tora, that will be held in Manila in October of 2020.

City leaders, Mayor Wagner and city council members have been working together in an effort to get needed projects funded without raising citizens' rates for city utilities. Mayor Wagner pointed out interest is low and it is a good time to refinance.

“The present bonds are about paid off and we, as a city, can have a one time extension on the present one cent sales tax which will allow us to do a lot of the projects we need,” Mayor Wagner said.

He went on to say refinancing of the existing bonds is the best solution long-term for the citizens of Manila.

“We looked at a number of different options to fund the projects listed on the ballot,” he said. “All options we came up with ended up costing the citizens of Manila more money. Other options included raising water and sewer rates or asking for a sales tax increase. We are proud that Manila has some of the lowest rates in Arkansas. We don't want to put an extra burden on our citizens.

“We are proud of all the city departments including our police department, fire department, city hall, and sewer, water and sanitation employees. The staff does the best they can with what they have. The funds from the bond issue will give each of those departments the assets needed to continue improving citizens' way of life. We are proud of our park and feel with the added amenities from the bond issue, it will be as nice as any park for a city of our size in Arkansas. We are also proud of our airport, which we feel is one of the best in Northeast Arkansas. Manila has a lot of great things going. The reality is Manila is a growing community and with growth comes cost.”

Mayor Wagner went on to say for this to be done, it will take a vote from the people. Early voting will begin Sept. 3, Tuesday through Friday, 9 a.m. until 4:30 p.m., and Tuesday, Sept. 10, from 7:30 a.m. to 7:30 p.m. Voting will take place at the lobby of the Manila Water Park/Pool.

Some of the facts pointed out included:

*Taxes will not increase;

*The first item on the ballot, refunding bonds, must pass or none of them will pass;

*The dollar amount allocated for each item on the ballot must be spent on those projects;

*If passed, the remaining amount on the old Water Park bond will be paid off and there will be a new bond issue to cover the voter approved items;

*People living outside of Manila will help fund the projects through sales tax purchases while passing through;

*State officials must approve the purchases made with the funds;

*Approved projects must be completed in three years;

*Some projects will start immediately if approved;

*Sewer and water rates will not increase.

Mayor Wagner pointed out the ballot has nine parts. Each project and the amount estimated will be on the ballot. Each project was discussed with $410,000 for street improvements; $980,000 on park improvements; $510,000 for Fire Department improvements; $75,000 for Police Department; $840,000 for water improvements; $455,000 for sewer improvements; $150,000 for community center improvements; $65,000 for drainage improvements; $150,000 for city hall building improvements.

“We have thought about this for a long time,” Mayor Wagner said. “If we borrow money from Rural Water to do some of the work, we would be required to raise our rates to qualify. There is no better grant writers than Wes (Wagner, city attorney) and Cathy (Huddleston city treasurer) but the city can only get one grant approved a year so it would take a long time to get this work done. With extending the bonds we can start the improvement process on Sept. 11.”

One resident questioned why so much would be appropriated for the park and only $65,000 for the drainage when drainage is a problem in many areas of town.

The $65,000 for drainage is for culverts only. Mayor Wagner and council members said the city has been working on drainage and it is improving. The city has a trackhoe already to dig the ditches.

“We have taken steps on the drainage,” Mayor Wagner said.

Councilman Steven Milligan said the city has made some good progress on drainage and he will be the first to ensure the improvements continue. Other councilmen, Jason Baltimore and Wendell Poteet, said they have also had drainage problems and they will continue to work on it.

The citizen commented culverts would not help in his area.

Mayor Wagner said the park funding includes an extension of the swimming pool for the middle school aged youth; lights for a walking trail; concession stand and many more improvements. The school and the park attracts people to Manila, he said.

Another question was how many years will it take to pay off the extension.

“It may be six to eight years,” Mayor Wagner said. “If it is 10 or 11 we cannot raise your tax. The payment is set until the bond is paid off. I think you will be proud of these projects and I hope you see fit to vote for it.”

He was asked what would happen and how would the work get done if it does not pass.

“We would not get the swimming pool,” he said. “We would use our turnback money to do what we can.”

A citizen commented it will cost more and take longer if it does not pass.

“Yes, in the long-run it would be cheaper to get it all done at once,” Mayor Wagner said.

Councilman Milligan again said drainage is an important topic to him.

“Everyone deserves to get the water out,” he said. “Your comments are not falling on deaf ears. It is easier to get grants and loans to fix those type problems. We are trying to find a solution. We have made progress since the spring.”

Councilman Poteet talked about how the water comes down on this area after a huge rain.

“We are working on it, daily,” Poteet said.

They went on to say some of the drainage problems are elevation problems and they have been working on that.

Mayor Wagner pointed out the problems were there before this administration and they are making an effort to correct it. It may take underground drains.

They all agreed they do not want to have to raise rates.

Mayor Wagner encouraged the citizens to come talk to him or any council member if they have problems.

“No one knows your problems like you do,” Mayor Wagner said. “Some may be more difficult than others but working together we can do it.”

Debbie Costner thanked the council for the informative meeting and the work they are doing.

“We will have about $200,000 in the budget for street paving,” Mayor Wagner said. “If this passes, we will be able to do twice that much. Our phones are open.”

Councilman Dale Murphy said there is not a price tag for a smile on a kid's face when they go to the water park or playground.

“The years I worked with the youth program were some of the best years of my life,” he said, “Seeing those kids come out in uniforms and seeing their smiles.”

Another question was asked if a splash pad had been considered as part of the park improvements.

Mayor Wagner said it has been discussed and is a possibility.

Mayor Wagner thanked everyone for coming and encouraged them to spread the word and vote.