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Eureka Springs council begins push to put sales tax for water, sewer repairs before voters
Summary
Council members heard committee figures showing a city sales tax could yield $427K–$1.7M annually depending on the rate; they asked staff to set a workshop and develop outreach before a possible November ballot measure to fund urgent water and wastewater projects.
Eureka Springs — Council members on Feb. 23 began formal consideration of a citywide sales tax to raise money for major water and sewer repairs, including an estimated $3 million to $6 million in needed upgrades to the wastewater plant and older water lines.
A committee presentation to the council outlined revenue scenarios: a 1% city sales tax was shown to raise about $1.7 million per year based on 2025 receipts, 0.75% about $1.2 million, 0.5% roughly $855,000 and 0.25% about $427,000. Council members and staff discussed using sales-tax revenue to support bonds that would fund immediate repairs and to spread the cost across residents and visitors.
Why it matters: Council members said the city’s water and wastewater systems are aging and need immediate work to avoid regulatory fines and environmental harm. Staff cited a near-miss with regulatory penalties at the sewer plant and described peak-weekend overflows and infrastructure that cannot reliably handle storm events.
Key details: The presentation noted the city has already raised water rates and that Act 605 and state rate-setting requirements affect how much can be shifted to user fees. Council members discussed forming a public-education campaign, a possible 10‑year sunset tied to bond terms, and the May 1 packet deadline for putting a measure on the November ballot.
Council response: Members pressed for clear public outreach and timing. One councilor said residents would rightly ask why rates have already increased and what a new tax would accomplish; another urged starting the outreach immediately, including workshops and door‑to‑door or flyer campaigns. The council voted to ask the mayor’s office to schedule a workshop to develop next steps.
What’s next: Staff will schedule the workshop and begin outreach planning; any sales-tax proposal would require legal steps and voter approval to be placed on the ballot. The council did not set a final rate or ballot language at the meeting.
