Council deadlocks for third time in a month

RUSSELLVILLE - For the third time in a month, the Russellville City Council deadlocked 3-3 over a 1-cent sales tax increase designed to help the city and prorated school system.

The council did, however, make permanent a 38.33 percent appropriation of the current 3-cent sales tax to the city school system with a unanimous vote. After the appropriation vote, many in the audience stood in ovation and cheered the council.

The meeting ran three hours and was attended by nearly 150 residents, most from the city school system, including Russellville City School Superintendent Don Cox and former Superintendent Wayne Ray.

Mayor Troy Oliver, City Councilmen Jeff Masterson and William Nale again voted for the 1-cent sales tax increase; whereas Councilmen Gary Cummings, David Grissom and Lanny Hubbard maintained their no vote.

Out of 17 proposed budgets, the city still expects a $900,000 deficit because of decreased sales tax revenue. Oliver estimated that the proposed 1-cent sales tax increase would add an average $105,000 in revenue per month.

Grissom said he commissioned a study from the Center for Public Policy and Economic Research at the University of North Alabama. He expected to have the results in about a week.

Supporters of the tax increase said it wouldn't hurt pocket books too much but would give needed funds to the city and school. Critics of the tax increase said that at a time when unemployment reached 12.3 percent in September and during a record-long recession it would actually decrease sales tax revenue.

"Do we want to add to that unemployment because we haven't passed a city sales tax?" said Oliver, who has argued that without the sales tax increase, the city would have to cut staff.

"Have we looked at anything else?" Hubbard replied.

Cummings, who has received pressure from the yes-voting council members, said of the tax increase, "The department heads, the employees and the school system is against us; the rest of the city is with us."

"The whole city is against you," someone in the audience heckled.

Trevor Stokes can be reached at 740-5728 or trevor.stokes@TimesDaily.com.