Mayor says 2017 challenges similar to county

    The Mountain Home City council recently informally approved the upcoming budget for 2017 and will likely officially approve it in February. Mayor Joe Dillard says, like the county, the city faces similar challenges in terms of revenue versus expenses. He says revenue for the city fell flat in 2016. The report for the month of December, which was collected in October 2016, was down $29,000 which includes the city’s portion and the amount the city collects from the county’s portion of the one cent sales tax.
     The Mountain Home City Council will consider the sales tax and millage rates for the upcoming year. The millage rate, like the county’s millage rate, has not risen in quite some time.
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    Mayor Dillard says the entire city council is committed to looking at new ways of attaining revenue. Legislation in congress regarding internet sales, which would allow state governments to collect retail tax from businesses that don’t have a presence in Arkansas, could ease the burden.
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    Decisions on the upcoming Marketplace Fairness legislation could determine the focal point for city tax.
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    Mountain Home City Council’s considerations for 2017 will also include insurance costs, funding for essential services and funding for non-essential services, such as the parks and recreation department, which generates tax money for both the city and the county.