Mayor Emery Doughtie still believes a one-cent sales tax would thwart the possibilities of a 17-cents tax increase to pay the remaining debt of the former Roanoke Rapids Theatre.
The mayor made another plea for a countywide referendum on the matter at tonight’s city council meeting, after suffering a defeat from the Weldon Town Board of Commissioners earlier this month. Doughtie said following the meeting he has discussed the matter with the Halifax Town Board of Commissioners, which assured it would discuss the matter further.
The new pitch for the referendum comes nearly two years after state lawmakers pulled the matter from its calendar.
“The theater was conceived as a way to provide employment to our area (after) many were displaced due to large layoffs and closings in the textile industry,” he read from a handwritten statement. “Looking back, yes, I believe things could have been done differently and possibly had a more beneficial impact on the Roanoke Rapids citizens and the Roanoke Valley community.”
Now in the sixth year of a 20-year loan to pay back some $20 million at approximately $1.9 million a year, Doughtie said, “This figure represents a very high percentage to be paid out on one project.”
However, if the council should elect to raise the property tax rate to pay the debt, he said the rate would need to go up 17 cents, or about 25 percent. For someone currently paying $1,000 in taxes the payment would be $1,250. “I believe this is not what your representatives want to do,” Doughtie said. “Unlike many municipalities, Roanoke Rapids does not sell water, sewer or electricity. Taxing the property is currently the major source of revenue for the annual budget.”
Under the current agreement, HSV Entertainment LLC has 18 more months before deciding whether to exercise its option and buy the venue for $7.5 million, an action that Doughtie said would significantly reduce the city’s debt and put the property on the city and county tax books.
If a one-cent sales tax was approved through a referendum, Doughtie said the entire debt, with an HSV decision to buy the venue, could be paid off within seven to 10 years.
The theater, along with personnel changes and weather events, has demanded much of the city’s time, the mayor said. “All in all, I know everyone has tried their best. No one has intentionally wronged anyone or anything.”
The city’s fund balance is healthy, Doughtie said, currently sitting at 28.2 percent. “We need to be able to do more. What we have been able to do has been done with no property tax increase in the past four years … In summary, we must continue to service the multimillion debt. Do you want the time period to be 14 years or some more years? Do you want a council at some point to say just raise taxes by 17 cents? Do you want to let those that visit our community and use our lakes, rivers, hospitals and other amenities pay an additional small tax along with us?”
Doughtie believes putting the matter to all county voters is the best route. “If it can be brought to a referendum, the people can make a decision based on a majority of the voters and not just one made by a future council.”