Voters in Mountain View have approved two bond refinancing measures to fund sewer system improvements by extending a one-cent sales tax.
The measures were proposed to voters in order to finance improvements designed to correct issues causing the city’s wastewater treatment plant to be out of compliance with regulations of the Arkansas Department of Environmental Quality.
To do so, city officials propose extending a one-cent sales tax dedicated to previous bond issues, which has been in place since 2005. Originally passed for sewer improvements, the tax was extended in 2011 to fund a water intake structure.
The Stone County Leader reports in a Facebook post the first proposal to refund the 2012 and 2014 bonds and pledge the use of the one-cent tax passed with 73% of the vote.
The second proposal to issue $6.55 million in bonds to finance improvements to the sewer system and to pledge the use of the one-cent tax passed with 75% of the vote.
Both measures had to pass in order for bonds to be issued to finance additional work.
In evaluating the project and city finances, CWB Engineers of Heber Springs had advised the minimum work on the project could be funded by a 32% rate increase, and engineers recommended a 5% rate increase for the next five years in addition to that to fund a depreciation account. City officials lobbied for the tax extension as an alternative to steep rate increases.
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