Arkansas city faces $391,000 shortfall after tax mistake

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(AP) – Officials in a northwest Arkansas city say failure to
properly authorize collection of property taxes leaves the city facing a $391,0
budget shortfall and possibly eliminating its police department.Cave Springs City Attorney Justin Eichmann told the Northwest Arkansas
Democrat-Gazette that records don’t clearly show the City Council passed an
ordinance authorizing collection of the taxes.

Eichmann said the amount is 23 percent of the city’s $1.7 million budget and
he’ll ask either Benton County Circuit Court or the county judge for guidance.

County Attorney George Spence said he thinks the city’s tax will be ruled
invalid.

City Mayor Travis says the police department could be eliminated to offset any
budget cuts, but Alderwoman Mary Ann Winters said some city administrators could
be eliminated instead of the police department.

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