Council to use sales tax for drainage project

PRESCOTT – Bids for a proposed drainage project were over budget, which left the Prescott City Council with a decision to make.

The council, at its October meeting Monday night, was told three bids were received with the low one being $428,347.30. However, the grant approved for the project was only $300,000. Mary Godwin, executive director of the Prescott-Nevada County Economic Development Office, said the council had two options. The first would be to trim the size of the project and decide which area would be cut out, or to use sales tax money to cover the overrun. She pointed out the Arkansas Economic Development Commission (AEDC) agreed to pay half of the cost if Prescott would pay the other half. This amounts to $86,998.65.

City Accountant Carl Dalrymple said this could be put in the sales tax budget for 2024. It was pointed out this would come from the existing sales tax being collected, not the one recently passed to pay SWEPCO. The council was told the tax for the electric bill can’t be used for anything else. The panel was also told the drainage project won’t begin until next year and, depending on weather, should be completed by spring.

Prescott Mayor Terry Oliver said the reason for the difference in the cost is after COVID-19, everything went up. He added, the project is definitely needed.

Godwin added there are a lot of projects like this needing to be done in Prescott, and when this one’s finished, her office will start on the next one, but there is a time line involved before the next step can be taken.

She told the council Brandon Tullis is asking for a five-year contract on 126 acres at the Prescott Industrial Park. He’s been bushhogging the land on a year-to-year basis, but wants to be able to cut hay from the property. Godwin said he will spray the property for the first two years to get rid of the thorn bushes and weeds so hay can be grown. From the third year on, he’ll pay $5 per bale to the city. He would also like the option to renew the contract at the end of five years. Godwin said he will also apply chicken litter to the land and bushhog what isn’t used for hay. The last time the city did something like this, she continued, it required a $1 million liability bond.

Godwin said she told Tullis Holcim is working on a project that would take 50 acres. He agreed this would be no problem. He also, she said, agreed if another project or prospect came along requiring the rest of the land, he would vacate with 60-day notice.

Councilman Ivory Curry suggested the city get something in writing to this effect. Godwin reminded the council this would not cost the city anything, and the city would be getting paid at the end of three years. However, it was agreed to have a contract drawn up and get Tullis to attend the November meeting to provide his thoughts.