Frequently Asked Questions

The future of our SID is of great concern and let me say, I do not know everything, nor have I claimed this.  I do know that as a commissioner, you should know the umbrella of a SID, not just one aspect of it.  What I find that I don't understand, I will research and study as in order to perform the duties of a Commissioner property, you cant just focus on one thing and depend on the other to tell you what is good or bad and I will be available to YOU at any time day or night.  But I would like to accomplish the following as a SID Commissioner .....

• Make sure we have a planning committee to help the commissioners evaluate every possible option for our future.
• Create a District Map.. without knowing exactly what lots were included in the district or even excluded, how can we properly oversee our SID, who to tax and who we cant.
• End the "Reactive" management and start being "Proactive"
• Through and with the Planning Committee, create a short and Long-Term plan for SID.
• Get our priorities in order.
• Working meetings at least one week prior to regular scheduled monthly meetings.
• Engage the Property Owners more to get them involved with out future.
• Ensure that every lot that was figured in or included in the 2022 Class Action Settlement is paying their Taxes.  No more so called exemptions for Reserved Property.
• Start offering the sale of those lots in our current asset list to get the settlement refunds going as well as get rid of them responsibly.
• Stop the forgiving or reducing of back owed taxes so that we show lenders we wont short their repayment.
• End the "kick the can down the road" mentality we currently have.
• See if we can live stream our meetings to foster more Property Owner Involvement.
• Work to upgrade our amenities rather than putting lipstick on a pig.
• Ensure that every amenities is considered equal to the other when considering work to be done.

The most important thing I would push for from Day 1 is to have a District Map made followed by appointing a Planning Committee to start on the Short and Long Term Plan.  I would also insist that we start a working meeting prior to our scheduled meeting where no decisions are to be made but prepare for the regular meeting and work a Short/Long-Term Planning.

A SID is a form of government enacted by state legislation which has Taxing authority and can foreclose on your property/home for non-payment.  A more detailed answer is under the next question.

To explain this, it is best to provide you with what the law states.  Keep in mind our SID has no gas, water, sewer, streets, security, fire, sidewalks and so on.  Anything that would concern a City, that's who may provide those things.  Basicly, look for the part about "build, purchase or accept as a gift..... 

it will be (4) and (11)(B)(ii)(a)&(b).

 14-92-219. Purposes for which district organized.

A suburban improvement district may be organized for any one (1) or more of the following purposes:

(1) To purchase, accept as a gift, or construct a waterworks system or betterments, improvements, and extensions to such waterworks system, either within or without the boundaries of the district, if the property of the district will benefit and to operate and maintain any such waterworks system it may purchase, construct, or own;

(2) To purchase, accept as a gift, or construct, either within or without the boundaries of the district, if the property of the district will benefit, a sewage collection system or a sewage treatment plant or intercepting sewers, outfall sewers, force mains, pumping stations, ejector stations, and all other appurtenances necessary or useful and convenient for the collection or treatment, purification, and disposal, in a sanitary manner, of the liquid and solid waste, sewage, night soil, and industrial waste of the area within the boundaries of the district or adjacent thereto, and to operate and maintain any such sewage system and facilities;

(3) (A) To open, grade, drain, pave, curb, gutter, or otherwise improve streets, roads, highways, and every other way for passage and use of vehicles, including viaducts and underpasses, either within or without the boundaries of the district, if the property of the district will benefit.

(B) Such purpose shall include the acquisition of rights-of-way by purchase or the exercise of the power of eminent domain, and to maintain such streets, roads, highways, and every other way for passage and use by vehicles, lying within the boundaries of the district or beyond the boundaries of the district, if the property of the district will benefit;

(4) To build, purchase, or accept as a gift recreational facilities such as, but not limited to, parks, lakes, golf courses, playgrounds, clubhouses, stadiums, auditoriums, arts and crafts centers, folklore centers, interpretative centers, camping areas, green belt areas, and any other facilities to provide for the recreation and cultural needs of the owners of the lands within the district and also to care for, maintain, and operate any such recreational facilities;

(5) To lay and maintain sidewalks;

(6) (A) To lay, own, extend, operate and maintain gas pipelines connecting with gas systems.

(B) (i) Nothing in this subchapter shall be construed to allow the purchase of an existing natural gas system or any part thereof.

(ii) Any such gas system shall be subject to the jurisdiction of the Pipeline Safety Division of the Arkansas Public Service Commission and shall be subject to all provisions of the Arkansas Gas Pipeline Code;

(7) To build telephone lines to connect with the telephone systems operating in nearby or adjacent municipalities;

(8) To establish, equip, and maintain rural fire departments, including construction of fire department buildings, purchase of fire trucks, fire boats, and other firefighting equipment;

(9) To own, acquire, construct, reconstruct, extend, equip, improve, maintain, and operate hospitals or to acquire appropriate vehicles and equipment for, maintain, and operate ambulance services;

(10) To own, acquire, construct, reconstruct, extend, equip, improve, maintain, and operate libraries; and

(11) (A) To provide a solid waste management system to adequately provide for the collection and disposal of all solid wastes generated or existing within the boundaries of the district in accordance with the rules, regulations, and orders of the Arkansas Pollution Control and Ecology Commission.

(B) (i) The governing body of the district may enter into an agreement with one (1) or more municipalities, counties, county solid waste authorities, regional solid waste management districts, private persons, private trusts, or any combination thereof, to provide a solid waste management system or any part of a system for the district.

(ii) (a) The district may levy and collect fees and require licenses as determined appropriate to discharge the responsibilities of the district.

(b) Any fees, charges, and licenses shall be based upon a schedule set forth by the district. 

There are approximately 25,000 lots in our (SID) District boundaries.  Over half are held by the Commissioner of State Lands for non-payment of Taxes.

No, They do not and its been 4 years since they were elected in our SID's very first Commissioner Election.

To be completely honest with you, the SID Tax is exactly that, a TAX!  It is written in the SID Law as a Tax which also gives SID the authority to foreclose.

This Arkansas SID Law explains it clearly....

14-92-228. Levy of tax.

(a) (1) The board of commissioners of a suburban improvement district shall, at the same time that the assessment of benefits is equalized or at any time thereafter, enter upon its records an order, which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of the improvement, with ten percent (10%) added for unforeseen contingencies. 

Everyone within the Boundaries of the SID.  That is the legal stuff in the formation documents.

I say everyone, but ALC and select individual has conned their way into not having to pay SID Tax and they call those properties "Reserved Property".

Per Arkansas Law 

 14-92-210. Powers of board generally.

In addition to, and not by way of limitation of the powers prescribed in 14-92-220, the board of commissioners of a suburban improvement district shall have the powers to:

(1) Make and execute all contracts, leases, conveyances, and other instruments of the district;

(2) Join with any other political subdivision, municipality, district, or governmental agency, either state or federal, in the acquisition, construction, maintenance, operation, and financing of any of the facilities, works, or operations authorized by this subchapter or as to the performance of any of its functions;

(3) Establish rules and regulations for the transaction of the district's business and for the services, use, and right to use of its facilities or services, or both, or to effectuate any purpose of this subchapter;

(4) Do all things incidental or auxiliary to the exercise of the express powers granted by this subchapter; and

(5) Perform all actions useful to carry out the purposes of this subchapter, unlimited by any express provision of it. 

 and 14-92-220. Powers of districts generally.

(a) Any district, in aid to and furtherance of the purposes prescribed in 14-92-219, shall have the authority to hire managers and other employees and to pay their salaries incident to the operation and maintenance of any of the improvements and facilities authorized in this subchapter. The district shall also have the authority to acquire and purchase equipment and machinery incident to the operation and maintenance of the facilities and shall be further authorized to do any and all other actions which shall be deemed necessary in order to purchase, construct, accept as a gift, operate, and maintain any and all improvements and facilities authorized in this subchapter.

(b) Any district shall have the power to sell or lease any improvement owned by it to any adjacent or nearby municipality, to an improvement district therein, to public service corporations serving on behalf of the property owners of the district, or to any other corporation, organization, or person. It may make contracts with the inhabitants of nearby municipalities, or it may operate such improvements for water, gas, recreation, or telephone service and may connect sewers with the sewers of any adjacent municipality or of other districts, or carry its sewers to any proper outlet within or without the district.

(c) Any district may accept as a gift any or all of the improvements and facilities authorized in this subchapter upon the assumption of the maintenance and operation of such improvements and facilities. It shall have the authority to effect the assessment of benefits and to levy the necessary tax against such assessment of benefits, as prescribed in this subchapter in order to provide the revenue for the costs of maintenance and operation. 

No, Mr. Cooper Gifted everything we have to our SID after he lobbied to have SID's created by law.  Mr. Cooper also purposely left property out of the SID boundaries so as to avoid paying the Tax.

To carry on from the last FAQ, or the one above, back in the day when it was all buddy buddy here, the owner of the properties in question some how conned SID in exempting them from the Tax and started calling those "reserved property".  The biggest one I know of is ALC/Johnathan (and family) Rhoads/King Rhoads.

To my knowledge there is no legal precedence that allows for Tax exemption or Reserved Properties.  In fact, all so called "Reserved Properties" were included in the 2022 Class Action Settlement Agreement so those properties actually owe back taxes, interest and penalties currently.

A lot of people will tell you yes but in fact a SID is not.  Again, a SID is a form of government with taxing authority and can foreclose on your property.  A HOA/POA can only go to court and have a lien placed on your property for not paying the fee and would collect the back fees when the property sold or the owner pays.  HOA/POA pay a "Fee"  a SID pay "Tax"

You are issued the Limited Warrantee deed because the State Lands Commissioner does not have the authority to reduce or waive any back owed SID Taxes.  You must take that up with SID after your purchase.

This is been the subject of many conversations.... but the answer is Yes, there are back SID Taxes on those lots.  The State Lands Commissioner will issue you a LIMITED WARRANTEE  DEED when you purchase from them. 

Historically, they have been known to do this and from what I have gathered depends on who you are, or know, which the determining factor.  *Note, this is my opinion based on what I've been told.

A question that has recently come op concerning this is weather there is a "Cloud" on your deed even though SID may have given you a quit claim deed supposedly clearing the deed of any ties.  What I have not gotten an answer to yet is if the state lands commissioner can not reduce or wipe SID Tax, how can SID do it?  Problem I see, is every lot or property within the SID boundaries must pay a portion of the Assessment of Benefits which is the "Tax".  How can you not tax one and tax the other legally?  Does this mean I can not pay my SID Tax then years down the road negotiate a reduced or removed back taxes?  Why No, so why are they doing this and is this air to those whose lot has paid taxes?  It isn't the person (owner) that owes on the Assessment, it is the LOT so by all rights, it owes like they all do.

Each lot within the district (SID) is assigned a portion of the Assessment to be paid off.  What your lot owes to service and pay off the assessment which typically has a loan or some kind of financing attached.  Each lot essentially has a responsibility and mandate to repay a portion of that loan.

If a lot is forgiven any part of this debt, or even reduced, then it effect paying off the Assessment and Loan or financing.  In the end, when the loan or financing pay off comes, we will not have enough funds to repay the loan and go in default.  If we default, then that lending institution could and most likely will foreclose and sell or auction off our amenity to the highest bidder.  Then what happens to our community?

It is of my opinion to add to this answer, by forgiving or reducing any back owed taxes on a lot, it shows the possible future lenders that we defiantly do not have an avenue to repay them and are financially irresponsible which would hurt our chances of obtaining any serious funding for a project (Capital Improvement).

Our SID has been notorious for doing this, especially with ALC (American Land Company) as well as a few other lots of recent.

There are several reasons I feel this way currently....

1. It would take a serious capital improvement such as performing these on every single amenity we currently have, or creating a new one to sustain our SID.  We are talking around 40 million dollars worth at least and probably more.  
   
   You see, IF we were able to get funding for that kind of project/s then what they, out there seem to think, is with each years taxes collected, an amount of those taxes must be set aside for loan service such as interest payments and principal.  So there goes a Huge Chunk of any Funding.  Then you would have to deduct funds for employee cost (payroll, insurance and other benefits), Equipment incidentals, Insurance for our amenities, electric, water, garbage, sewer (if any, i think Thunderbird is on sewer and maybe the N Golf Course), and other things, phone, interne, service contracts etc.. What's left is what we have to do minor projects, upkeep, maintenance and so on.
   
   what "they", those who think SID can continue on and wont even consider having the City take this over thinks, is we will continue to receive or create the funding we currently have.  This is the furthers from the truth as one can get!  We owe nothing on what we have, no loans, no bonds, nothing so our SID currently gets to use 100% of the Assessment Tax in any way they choose.  After this assessment is paid off, we will NEVER see this kind of funding again and that is plain FACT.

Those who champion a POA or HOA as a possiblility I would ask them to please provide the legal means for this to happen.  

Further, I would ask them how they plan to service and fund everything we have and what grantee that it wont fail putting us back in the same situation we currently are in.

I am curious as to how they could enforce collecting the FEE since a POA or HOA can not foreclose, they can only have a lien placed on the property and collect when ever the owner sells.  It could be YEARS before the PO finally settles up.  Will the POA forgive or reduce back owed FEE's or are they going to be unfair to the Fee Paying PO's as we currently are under with our SID.

How can a POA or HOA seek Grants or government funding?

I am open to ways of saving our communities amenities be it through continuing SID or convey to the City as long as its in a financially responsible manner and can be proven, which is what we all should be asking for.

Good Question!

At this moment, I do not think so.  I recall reading in the law that a SID can sell to or convey its assets to a neighboring municipality or government form.

I do not have that at hand so I can only state I recall reading it.  I am looking for the verbiage and section of law I think I remember reading it and will post it here when I do or let you know if they can when I find that.

My question back to you is, did you ask this of those who are entertaining the POA option?  Did they have law showing it is ok to do?

Yes, SID tax does not go away as per an Attorney General Opinion.  Even though the parcel may be at State Lands and they are not required to pay it, the SID Tax still continues.  The CoSL is able to and does negotiate avelorum taxes during sale but he/she can not modify back SID taxes and the buyer must deal with SID.  By SID's own publications of their colle cc to letter, they can not remove the taxes owed and they state under threats of foreclosures if not paid.

The CoSL issues a limited warranty deed because of the SID back taxes.... it does not mean you don't have to pay the back SID Tax!  If it did, why does SID send out collection letters threatening to foreclose?