City hosts final public meeting regarding 'replacement tax'

The second and final public meeting to discuss the replacement sales tax before the election was held Tuesday evening. The meeting began at 7 p.m., and was held in council chambers at city hall.

At the beginning of the meeting, Mayor Jake Crafton welcomed those in attendance, saying, "We're here tonight to answer any and all questions. If we can't answer the question tonight, we'll do our best to get the question answered as soon as possible." He then turned the floor over to the audience for questions.

The first person who spoke raised several concerns of importance which included the following:

* What is the city going to do with the $318,000 in the savings account that was from the sale to Frey Farms?- To this, Mayor Crafton noted that the money is currently in a savings account, a reserve account. This is money that the city can fall back on, if needed. Councilman Bob Hancock added that this money could also be used for capital improvements in case it was needed to purchase a building for an industry that was relocating to the city.

* It was then asked if the money that is collected from the capital improvement tax, in terms of the city budget, was it use it or lose it"- Mayor Crafton answered that this was not the case.

"There are reserve accounts that we have for equipment. The Street Department, for instance, he budgets a reserve amount for equipment. That money will go in his reserve account," Mayor Crafton said. Randy Carter, street commissioner, added that this is done if the money is there in the bank and it's not put in until the last day of the fiscal year.

Mayor Crafton stressed that this money is not used on salaries but can only be used for capital improvements, especially industry.

According to Mayor Crafton, this tax was passed in 2003 particularly to fund industry. It brings in around $30,000 a year. There is an estimated $800,000 in the account now but these funds have been used for various projects in the city. Mayor Crafton noted that this would stop if the replacement tax passes.

"Recently, this hasn't been used for industry. We've pulled from it for various projects, various needs that we've had. Hopefully, with this new sales tax, we will never have to pull from it. We will not pull from that because we'll have our own capital money coming in that we can use for our capital purchased," he said, adding, "That's money that's in the capital improvement tax currently will be used for industry only."

The question came up of whether any positions would be eliminated.- Councilman Hancock noted that this has not been discussed but if the tax passes, the issue would be addressed later on down the line.

Another issue brought to the council's attention was the impact on the elderly and low income citizens of the city. To this Councilman Rick Gore responded, "The reason I have supported this and I understand it is going to affect some people. It's going to be hard on some people. But we're to a point in the city where we don't have the money to operate. We can't maintain what we've got let alone improve infrastructure we've got. Mr. Carter will tell you we can't fix our streets. We certainly can't gravel any more streets," he said. Currently, the city has 13 miles of gravel streets in the city limits. Gore continued by also telling the audience that both the conditions of the police department and the two fire stations are poor. He noted that the fire station are "falling in around us."

"At some point, some of that has got to be fixed and it takes money to fix it," he said. Councilman Larry McDonnell added, "If we stay where we are now, it'll never happen."

Mayor Crafton then talked a little about the city's property taxes. He noted that the city's property taxes are not going up, that they are going down.

"The only reason they're staying flat is our property tax levee that we levied to the citizens is going up. It's not the same levee it was five or 10 years ago. As opposed to our sales tax now, we have a five year average. Our CPA certifies that's correct information." Crafton also noted the poor economic situation of years past.

"This past year one half million dollars came in. Decent times," he said. Additionally, he talked of the sales tax going up as opposed to property taxes that have remained stagnant. Crafton added that costs keep going up."

"All we're doing right now is what I call being General Motors. Our revenue is going to employees. Plain and simple. We have a little bit of money for operations. That's it. That's why we're having to rob from this capital improvement tax so much. We can't do anything. Sure, we can lay off half our employee force but if you don't have any employees, you don't have anything get done either."

"Just like anything else, we're going to have some good things and bad things with it but, I think, if you look at the good things, that's what I feel like with it," Councilman Bill Palmer added.

Other issues also discussed included the current city tax rate of 6.475 percent. Councilman Nick Weatherwax noted that this was comparable to the Missouri cities of Arbyrd, Cardwell, Senath, Hornersville, Holcomb and Gideon. If raised, the taxes would then be 7.9 percent and be in line with the other Missouri cities of Poplar Bluff, Cape Girardeau, and Doniphan as well as the Arkansas cities of Piggott and Marmaduke.

Another question asked was whether the passing of the sales tax bring jobs to Kennett.

Councilman Bobby McMahon noted that there will be job but mostly for contract work for street repairs since the street department is not capable of doing the repairs that the city needs.

Councilman Hancock added that if the city can attract new industry, there would be jobs. He added that Frey Farms have created jobs but at the present , it is a transient labor workforce. Hancock next talked of a meeting he had attended which included Frey. According to Hancock, Frey's projected workforce for next year includes jobs for 750 workers. Hancock pointed out that all these people would be spending money in Kennett and paying the sales tax, thus contributing to the city's revenue.

Another question was brought up as to how the city can attract industry to the second poorest county in the state. All council members agreed that the passing of this tax would be the first step.

"We hope this is the first step on a long journey," Hancock noted, adding, "If we keep doing what we've been doing for the last numerous years and expect different results, we're kidding ourselves. We've got to make some changes and we've got to get in a positive vein and start tracking some things."

There was also discussion of how the city and others in the Bootheel are continually every census losing population. Councilman Palmer noted, "Everything is about growth. If we can get more growth, more population, then all those other things will come too. That creates jobs in itself."

Continuing, Palmer said, "All of it is, based in my mind, is trying to improve the situation we're in and not staying stagnant in what we're in. We've got to show some growth."

The question also came up regarding the bond issue that the council is considering.

"The bond which will have to come back to the voters, if this all passes, will have to come back to you as a bond proposal." He noted that $500,000 annually would be taken from this tax and that would be used to levy a $7.5 million dollar bond issue. He added that with a 7.5 million dollar pool, major infrastructure could be undertaken If the bond issue goes before voters and passes, the city would then sell bonds at three percent interest. Half a million dollars annually would be to retire the bonds over 20 years.

There was also discussion of an ad that has been running. Allegedly, it talks of how the council members will be using the money from the transportation tax to take trips. Mayor Crafton assured the audience that this isn't true. The money will be allocated for the repair of the streets, bridges, sidewalks and parking lots.

In closing, Councilman McMahon commented, "I've lived here all my life. I've never lived anywhere but Kennett. I care about Kennett, more than probably a lot of people do, people who have moved here. I've lived here my whole life and I've seen Kennett go down. It's not anything like it was when I was growing up. That's the reason I ran for council. I want to make a change. I'm doing what I feel we need to do. I'm not trying to hurt anybody but I'm not doing anything I wouldn't do to myself. I don't think there's a person who will tell you any different. We're not trying to hurt anybody. In no way, we don't want to do that. But we all have to sacrifice."

Continuing, he said, "Somewhere down the road, you've got to make a decision whether you want to progress or if you want to keep going the way you are. The rate we're going right now, we're going downhill."

"We see it as a process, it's going to take time, it is. I wish we could snap our fingers. Even with passing the tax, if it passes and we get that extra revenue, we're still talking about time," Gore said.

One last question was asked what would happen if the tax doesn't pass. Council members said the city would continue operating as it does now.

If one tax passes and the other doesn't, the taxes would still be collected but in order for city property taxes to be eliminated, both tax ordinances require a yes vote.

For or against the replacement tax, don't forget to cast your vote on Tuesday, Aug. 7, 2012.