Commissioners put 1% sales-tax question for Susan B. Allen Memorial Hospital on August ballot

The El Dorado City Commission voted May 4 to call a special-question election in the August primary asking voters whether to impose a 1% citywide sales tax for seven years to support Susan B. Allen Memorial Hospital.

City staff told commissioners the special sales tax would generate approximately $21,700,000 over its seven-year life if approved and would be collected beginning Jan. 1, 2027. The city manager said the tax would be designated as a special sales tax and that the city would receive funds from the state and pass them through to the hospital, which would retain discretion to spend the proceeds. The manager also said the commission had asked the hospital to provide regular updates to the commission so the public can track how the funds are used.

A commissioner who spoke in favor said he preferred a five-year term initially but accepted the case for seven years after details presented at a work session. Another commissioner said the hospital had shown “great leaps” in improving its finances and that maintaining a local hospital is vital to the community.

A fellow commissioner noted the city’s legal advice that labeling the tax “special” preserves the city’s flexibility with its existing 1% sales tax and explained that if hospital leadership later determined the tax was no longer needed the commission could sunset the remaining years by ordinance.

The motion to approve the resolution calling the election was moved and seconded and carried on a voice vote. The commission directed staff to include language putting the question on the August primary ballot and to notify election officials of the measure.

Next steps: if voters approve the measure, the city would begin remitting proceeds to Susan B. Allen Memorial Hospital under the terms described; if circumstances change, the commission may pass an ordinance to sunset the tax before the seven years elapse.