ELKINS — Aldermen met for a special called meeting on Tuesday, Oct. 27, on an ordinance levying a tax on the real and personal property within city limits for 2009, which brought on a discussion about 1 mil of the 5 mil tax Elkins receives going to the retired firefighters’ fund.

The city council must vote each year on an ordinance levying the real and personal tax in order to receive the tax revenue. The ordinance before the council would fix the rate at 5 mil with an emergency clause declaration so it could be certified at the Washington County clerk’s office as soon as possible and before the quorum court meets on Nov. 12.

One mil of the 5 mils has been going into the Elkins Retired Firefighters Retirement Fund since the 1980s, however according to Mayor Jack Ladyman any funds going into the fund now would go to LOPFI, the Arkansas Local Police and Fire Retirement System, which is disbursed statewide.

Ladyman due to this requested the 1 mil go intothe general fund along with the additional 4 mils the city receives.

“It’s my opinion this will go to Little Rock to LOPFI,” Ladyman said.

A discussion followed with Ladyman revealing that Elkins retired firefighters had assets of $312,808.

“What’s in the account now is enough for 63 years based on what retired firefightersreceive now and if the state continues to pay in $19,000 and the city continues to pay $5,000 into the fund,” Ladyman said.

He added a vote had been held by the retirees with four yes votes, one no and two abstaining on allowing the 1 mil to go into the city’s generalfund.

Alderman Duane Foster said he wasn’t sure the retirees understood the issue after one firefighter said he would like to change his yes vote to a no vote because he hadn’t understood what the vote was about.

Alderperson Terri Miller asked if the ordinance she would be voting on was to put all 5 mils into the general fund or not.

Ladyman explained the council voted each year for 5 mils to go into general fund and would then allocate 1 mil for the retired firefighters’ fund.

Tommy Atha, a retired firefighter, objected to the retirement fund losing the 1 mil even if it went to LOPFI. Two other retirees attendingthe meeting agreed with him.

Alderman Jerry Stevens argued the case of no longer paying the 1 mil to retired firefighters due to it going to LOPFI.

“There is no way we’re leaving them [Elkins retired firemen] out to dry,” Stevens said. “If we take 1 mil and allocate to the state, I think the citizens of Elkins would be upset. If we put it in a reserve fund, we can allocate it to firemen here if they need it.”

The city receives more than $100,000 a year in real and property tax. Though 1 of 5 mils has been going to retired firefighters, a smaller portion has been going to the street department, according to the mayor.

Ladyman said he felt some of the 1 mil should go to raises for city employees. “Theyhaven’t had a raise in three years,” he said.

The discussion turned to when the ordinance had to be approved and sent to the county clerk. Both Ladyman and Recorder/Treasurer Sunny Ledford said the ordinance needed to be signed and sent in by Nov. 1 to the county clerk’s office.

Foster said he would like more time for the retired firefighters to meet and vote on the issue again.

“We’re out of time,” Alderman Bonnie Wilcox told him. “That’s why this special meeting was called.”

The motion that was made prior to the discussion to levy a real and property tax came up for a vote and surprising the mayor and two council members, it was turned down with aldermenBruce Ledford, Duane Foster, Lloyd Stith and Terri Miller voting no. Stevens and Wilcox cast the only yes votes.

Immediately a motion was made to adjourn and council members filed out.

“I wonder if they knew what they were doing,” Ladyman said. “They just voted against the city getting any tax revenue.”

In other business, the council approved a resolution authorizing an extension of a loan on the old water department building on First Street for a three year period with payments of $230 per month.

Note: The next city council meeting will be held on Thursday, Nov. 5, at 7 p.m. at the city hall. An ordinance to renew the real and property tax is on the agenda again.

News, Pages 1 on 11/04/2009

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