Little Rock Mayor Frank Scott Jr.’s attempt to get a proposed sales tax increase to voters by November has been met with skepticism, but the battle might not be lost just yet.
The mayor’s talk with the Little Rock Board of Directors Thursday morning indicated a mix bag of support from city leaders. Some directors shared Scott’s urgency to meet a September deadline, while others were concerned about rushing things.
The group chatted for two hours as part of a working session to iron out the details of a proposed sales tax increase in Little Rock. Though all features of the proposal could still change, Scott said he was pushing for a 1% tax increase, which would raise the total sales tax rate for city residents to 9.625%. (Of the current tax rate, 1% is levied by the county, 1.125% goes to Little Rock and the remaining 6.5% is taken by the state.)*
The projections Scott provided Thursday totaled $600 million in total investments for a 10-year period. About half of that would go toward improving Little Rock “parks and quality of life,” according to a sheet distributed Thursday. The single largest item would be a $136 million indoor/outdoor sports complex at War Memorial Park.
To get the tax on the ballot this November, the Little Rock Board of Directors must agree on its parameters, pass an ordinance describing the tax and send it to the Pulaski County Clerk’s office by Sept. 5. If they don’t meet that deadline, the next earliest date for a potential vote would be in March 2024.
Scott repeatedly emphasized the need to act quickly, in part because the the political environment in 2024 could be made more difficult by the presidential election. Little Rock residents need improvements sooner rather than later, he said.
Scott opened the meeting by going through the main areas he hopes to fund: parks, public safety, the Little Rock Port and public works. He said the draft proposal would sunset in 10 years, though it includes items that would generate ongoing operating costs as well. Scott said he wanted to create an open dialogue with the directors about what they wanted to see with the sales tax proposal. Public meetings throughout August should also be in the mix, Scott said.
Check out the mayor’s one-sheet summary of possible projects here, but note that things could still change.
In addition to the War Memorial sports complex, the preliminary list slated for the one-cent tax proposal includes $115 million toward public infrastructure costs, including streets and sidewalks; $65 million in operating expenses for public safety efforts; $40 million for the zoo; $30 million for the Arkansas Museum of Fine Arts; $20 million for addressing homelessness; and about $12 million for economic development at the Little Rock Port. Some smaller-ticket items are listed as well, including $3 million for the Museum of Discovery and $2.5 million for lights on the Broadway Bridge.
Questions & Concerns
Nine of the 10 city board members were present Thursday to voice their opinions and concerns about Scott’s sales tax proposal. At-large Director Joan Adcock was unable to attend due to a conflicting appointment. A few directors also slipped out for other commitments throughout the two hours.
Director Lance Hines, who opposed Scott’s attempt at a similar tax increase in 2021, said he didn’t think there was enough time to campaign for the initiative before a November election.
“I think we’ve got the cart a little bit in front of the horse,” Hines said. “We’ve come up with a plan without talking with our constituents and our voters.”
Hines suggested campaigning for months across the city’s wards with listening sessions, then adjusting the “bones” of the proposed plan according to resident input. He also raised concerns about the city asking residents to pay more while the city has a $6 million budget surplus.
“If we rush something of this magnitude it is doomed to fail,” Hines said.
Scott noted that the city is restricted in how it can spend surplus funds and said it was insufficient to address Little Rock’s many needs.
Vice Mayor Kathy Webb and Directors Capi Peck and BJ Wyrick echoed Hines’ sentiments on the value of hearing from residents, and they said it would be a rush to get the work done in August.
Peck said the proposal was not “Rebuild the Rock 2.0,” a reference to the failed 2021 Little Rock sales tax initiative that voters rejected by a large margin. The new proposal will be more palatable, she said.
“I don’t want to fail again because I believe in these projects and I know how important it is,” Peck said.
Wyrick also voiced concerns about maintaining personnel for new capital projects. Webb said she would have additional questions about big-ticket items on the project list.
Director Ken Richardson said he’d like to see more funding go to community-focused crime initiative.
“It’s very, very, problematic that we couch public safety within the narrow confines within police and fire,” Richardson said.
Director Virgil Miller said he would appreciate more specifics about projects, rather than large pots of money for broad improvements. But, Miller added, he hasn’t yet talked to a group opposed to the idea of a sales tax increase.
Director Andrea Lewis said each city official should act as an ambassador for their constituents when it comes to the sales tax increase. She said the folks in Ward 6 complain about the same problems over and over, and she’d like to offer them a solution rather than saying nothing can be done.
Next Steps
Thursday’s meeting pointed to busy weeks ahead. Scott told directors they should allot some time at every Tuesday meeting before September to discuss the potential sales tax increase. He and City Manager Bruce Moore will work on scheduling public meetings in August, he said.
The public meetings would likely be planned for Monday or Wednesday evenings and will be placed geographically so that each meeting can serve residents of multiple wards.
*A previous version of this story incorrectly reported Pulaski County collected a 1% sales tax. At the county level, 1% is levied, however, Little Rock claims half of the funds collected from the tax.