Citizens take city to court over parity pay: Lawsuit alleges tax revenue approved for purpose mismanaged by officials

A group has filed a lawsuit against Texarkana, Ark., officials that seeks to ensure pay parity between the city's police officers and their Texas-side counterparts.

The suit claims mismanagement of tax revenue meant to keep Arkansas-side police officers' salaries as high as those across the state line, and it seeks a judgment earmarking that revenue for police pay raises.

More than 80 people are listed as plaintiffs in the suit, filed Friday in Miller County Circuit Court by local law firm Langdon Davis. Mayor Ruth Penney-Bell and City

Manager Kenny Haskin are named as defendants.

In a Nov. 28 letter to City Attorney George Matteson, the firm threatened to file the suit if its demands were not met within 15 days. The letter referred to "more than 100 concerned citizens" as potential plaintiffs.

Arkansas-side voters in 1996 approved a pair of quarter-cent sales taxes to fund police and firefighter pay parity, which has been a continually contentious issue in the city since.

"Repeated attempts by concerned citizens have been made to the Mayor and City Manager to account for and set aside the funds collected from the special local sales and use tax approved by voters in an election on January 9, 1996 that was to increase payroll for (Texarkana, Ark., Police Department) officers.

"The City officials have and continue to place the funds collected from this tax into its general fund to bolster their financial condition and for purposes that the citizens did not approve in the election. As a result of this continued indifference to those concerned citizens and the officers, there was no alternative other than to file suit with the Circuit Court.

"We have requested the Court to declare that the funds from the approved tax be set aside and accounted for in a dedicated fund, for these funds to be used for the Police Department's payroll in the future and directing payment be made to current and prior police officers. Ultimately the citizens are concerned about the long-term safety of the community, just as they were when voters approved the tax," plaintiffs' attorney Brent Langdon said in a news release.

The suit asks for a judgment that the pay-parity ordinance "means the special sales and use tax set aside is for the periodic incremental salary increases of the TAPD" and seeks "all relief allowed by law and equity."

Attorney Ralph Ohm with Arkansas Public Entities Risk Management Association will represent Penney-Bell and Haskin in the case. He argues that the parity sales taxes have not been misused; they simply are insufficient to fund pay raises.

"The flip side is we are using every bit of the sales tax to get to the parity; there's just not enough sales tax there to accomplish that. So we haven't misappropriated the money. We've used it for its intended purpose; there's just not enough of it to satisfy that intended purpose. In fact they have had to supplement that line item to try to get to parity. It is actually causing strain on the other offices," Ohm said.

Another argument the city may use is that the parity tax ordinance is unconstitutional in that it lets Texas-side salary decisions determine Arkansas-side officers' pay.

If that argument were successful, "all that sales tax revenue then would be lost, which would be a disaster for everybody, but it would then allow the city to no longer be tied to the Texarkana, Texas, police and fire salaries. Texarkana, Ark., would be able to set whatever salary they deem would be appropriate," Ohm said.

In a statement, TAPD Chief Robert Harrison said he has nothing to do with the suit. He is not listed among the plaintiffs.

"Some City officials think I am involved in suing the City over parity, and they are wrong. If I was involved in the litigation with the City over parity, it would be because I have never received parity (the same salary as the Texarkana Texas Police Chief).

"I felt like it would appear to be self-serving to force the issue for parity for myself. I can understand why some might think I am involved in the prospective litigation as I have and always will be for salary parity for the officers working in my police department," Harrison said, going on to argue that pay parity is essential to maintaining high-quality service from TAPD.

"For this current police service to continue, our officers must maintain salary parity with our Texas counterparts, or all qualified applicants and newer officers will simply walk across the hall for more money and stability. You get what you pay for," he said.

The lawsuit filed Friday does not mention Texarkana, Ark., Fire Department, and it is unclear how any ruling in the case would affect Arkansas-side firefighters' pay. Langdon said TAFD was aware of preliminary meetings regarding the suit.

Ohm said it was his impression that the city is resolved to see the case to a conclusion.

"I think that they would like to see whether or not that ordinance is valid, if in fact the plaintiff in this case wants to push that issue. I think the city would not be opposed to getting somebody to audit those numbers and find out really where things are at.

"This is not a case that is going to go away, I can tell you that right now. This is one of those in which I believe you're going to find the city board is going to take a position that they are doing everything they can, and they have stretched out and stretched out and stretched out, and they're kind of of the opinion that if that's not good enough, then let's regroup and let us take control over our salaries again, and we will rework the numbers that way.

"If this case goes to trial, there will probably be no winners, no matter what happens," Ohm said.

Haskin declined to comment on the suit for this report.

On Twitter: @RealKarlRichter

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