Highfill responds to uncertain economy
Posted on Wednesday, July 16, 2008
HIGHFILL ó With sales-tax revenue beginning to fall off, the town of Highfill will be cutting back on expenditures in an attempt to retire debt.
Mayor Chris Holland told council members that, since the Northwest Arkansas Regional Airport is beginning to cut back on flights, sales-tax revenue for the town is also likely to decrease. Holland proposed putting a moratorium on any future expenditures other than maintaining the current infrastructure and using moneys saved to pay off the townís indebtedness as quickly as possible in the event the economy gets worse before getting better again.
Though some departments have already spent most of their budgets ó such as street maintenance because of the repair, maintenance and paving of streets and roads in need of improvement ó other departments may be able to have budgets reduced by cutting out any new purchases and expenditures.
By early retirement of the townís debts ó likely by selecting one debt at a time and paying it down with moneys saved ó Holland hopes the town can avoid financial difficulties in the future if the areaís economy continues to suffer.
ì Sales-tax (revenue ) fluctuates month to month, î Holland said. ì One month we may get $ 50, 000, the next $ 70, 000, and another $ 90, 000. Itís not very dependable, î he said.
According to Stacy Digby, the townís treasurer-recorder, sales-tax revenues received from the airport are already beginning to decline.
Since the townís budget was adopted by ordinance, a new ordinance to amend the budget and begin paying off indebtedness will be brought before the council at its next regular meeting, Aug. 7. In particular, the town hopes to retire a $ 92, 000 debt in November, before the townís annual payment is due in December.
ì There is no penalty for early payoff of the debt, î Holland said.
Though no official action was yet taken, council members voiced approval to Hollandís plan and the plan is already being voluntarily implemented by department heads.
ì If the city and the water and sewer departments combine efforts, we may get some of the debts paid in three or four years, î Holland said.
Water Works supervisor Frank Holzkamper said, if the town is able to retire debts early on the water and sewer systems, it may prevent some future rate increases for customers.
Also discussed in relation to the townís sales-tax revenues was the issue of some utility and service providers charging Highfill residents sales tax for other nearby cities rather than for Highfill because Highfill does not have its own post office or Highfill mailing addresses. The common problem results in the loss of sales-tax revenues for Highfill and in an overcharge of tax to the customer since Highfillís tax rate is lower.
Holland said he would be contacting companies about the problem.
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