City to seek tax increase to pay SWEPCO bill

PRESCOTT – City residents will be asked to approve a one-cent sales tax to pay off the bill the city was hit with from SWEPCO during the snowstorm of 2021.

This tax will include a sunset clause that will remove the tax once the bill has been paid.

Prescott’s city council, at its January meeting Monday night, discussed the situation and agreed a sales tax is the best option. The other choice was to require the customers of Prescott Water and Light to pay for it with higher utility bills on their monthly statements. The increase on bills would be based on usage.

Prescott Mayor Terry Oliver reminded the council the city was hit with 21 inches of snow in 2021 and SWEPCO did what the city considers to be price gouging.

Electrical Operations Manager Larry Jones, Jr., said the city got a bill for $1.9 million from SWEPCO during the storm and the situation has been discussed at length with the city’s legal team, with the end result being the city will have to pay the bill. The city has worked out a payment plan of $15,000 a month. Jones said the city could either go through the people with higher electric bills or ask for a sale tax to make the payments.

Nobody liked either option, but Jones pointed out once the bill is paid the tax would be removed from the books. “The sales tax is the best way to go, he said, “as far as the people are concerned.”

Councilman Ivory Curry said 60 percent of the tax will be paid from I-30 and people passing through. Jones agreed most of the city’s sales tax comes from the truck stops, not from people who live here. This, he added, is how SWEPCO will be paid back.

Councilman Susie Meeks suggested doing a survey to see what the people think, adding her opinion was to have a sales tax increase.

A survey, Jones said, would take time, something the city doesn’t have, and the council represents the people in town. “A tax is the simplest way,” he said. “It’s either a sales tax or people pay out of pocket.”

Curry chimed in saying county residents would also be helping out when they stop and shop in Prescott.

A sales tax, Jones said, will collect around $500,000 a year. Oliver added a lot of cities on the interstate have sales taxes of 12 and 13 cents.

“Time is of the essence,” Jones said. “The budget depends on revenue.” The council was polled on its preference of either a sales tax or increase on monthly utility bills. The panel was unanimously in favor of trying to pass a sales tax.

Once a new city attorney is appointed, one of his or her first duties will be to draw up the ordinance for the sales tax.

Oliver, in other business, gave the report for the Prescott-Nevada County Chamber of Commerce, pointing out the Nevada County Food Share will be holding a soup luncheon from 11 a.m. until 1 p.m. on Jan. 23, and Southern Pines will have a coffee on Jan. 24 from 9:30-11 a.m.

In February, the Kiwanis chili luncheon will be from 11 a.m.until 1 p.m. on Feb. 9, at the First United Methodist Church, with the Rotary’s soup and chili fundraiser from 4-7 p.m. on Feb. 10 at the Prescott Junior High School cafeteria. The FCCLA will host a community coffee on Feb. 15 from 9:30-11 a.m. in the FCCLA room at Prescott High School, while the Women in Prescott will host a handbag bingo at the Barn a Willow Oak Acres on Feb. 24.

A new business is opening downtown with First Fitness and Dragonz MMA School opening at 303 E 3rd St. It will offer classes in cardio kickboxing, cardio boxing, strength, conditioning and toning up, along with adult and children mixed martial art fitness. The gym opened Dec. 30 with memberships $35 a month. For more information call Michael at 870-433-1445.

It’s also time to nominate people for the 2023 Citizen of the Year and Hometown Hero. The deadline for nominations is Feb. 20.

Lynn “Pookie” Gillard was also recognized as the city’s Employee of the Year for 2022 at the meeting. Gillard was chosen at the city’s Christmas party in December, being voted on by city employees present at the time. Oliver said Gillard started working for the city’s electric department shortly after graduating high school and has been there for 37 years. Oliver called him a “top flight lineman” who stays busy and has a solid work ethic.

As the meeting came to an end, Oliver lauded the Leadership Nevada County Class of 2023, saying the group had a good retreat at DeGray and is a good class. He added Love’s has started work on its second location in Prescott, which will see additional parking and employ 50-70 people. Construction should be completed by Aug. 15. He concluded by giving a shout out to Rosston Mayor Dale Quarles for helping out during the December freeze when temperatures dropped into single digits. He said Quarles worked in Rosston and helped shut off water meters, working on Christmas Eve and Christmas Day.