Frequently asked questions

Straight answers to the questions residents are most likely to have, updated for the September 22, 2026 Long Range Plan.

What is the Long Range Plan?

It is the September 22, 2026 plan endorsed by the City Council and HISID Board that establishes the framework and intended sequence for transitioning HISID services to the City and eventually phasing out HISID. It has five phases: roads, water and sewer, fire and public safety, recreation, and the phase-out of HISID. The plan describes itself as "not a binding contract but rather a good faith projection."¹ See this site's summary or read the official document.

Isn't this just adding another layer of government?

No. Holiday Island already has a city government: it incorporated in 2020 and has been providing services since 2022. Today that City operates alongside HISID, which has its own board, budget and assessment. The Long Range Plan would move HISID's services to the City in phases and eventually phase HISID out, leaving one primary elected government where there are now two public bodies. The plan projects one administration at about $640,000 a year, compared with $1,093,430 for the two combined today. See One community. One government.

Can the City really take all this on?

It has already started. The City has accepted 14 miles of road and resurfaced about 12, covering about $1.28 million in road work through 2026; it has received a $300,000 paving grant and been awarded a second, $400,000 grant; it took over the county deputy agreement in 2021; and it runs planning and zoning, building permits, code enforcement, district court and solid waste. The plan phases the rest in over several years so capacity can be built as responsibilities arrive. See The City isn't starting from zero.

Is the transition decided already?

The City and HISID have endorsed a Long Range Plan establishing the framework and intended sequence for transitioning HISID services to the City. The road transition is specifically planned for January 1, 2027, when the City assumes 100% of road maintenance responsibility.

That does not mean every future phase is already finalized. Water/sewer, public safety, recreation and the eventual HISID phase-out involve future budgets, funding mechanisms, debt retirement, petitions, votes, legal processes and other implementation steps described in the Long Range Plan. See what is planned and what is still open.

What happens to my HISID assessment?

The Long Range Plan anticipates the HISID assessment decreasing in stages as responsibilities move from HISID to the City. The first reduction is associated with the road transition beginning January 1, 2027. Additional reductions are expected as water/sewer, public safety and recreation responsibilities transition. The exact amounts will be determined through future budgeting and implementation decisions.

The plan gives one exact figure: once the sewer loan is paid off, the assessment would be reduced by $54.25¹, and the Sewer Debt charge on water bills would end. The assessment is eliminated entirely only when HISID is phased out and its debts are satisfied, and the plan projects no date for that. See the assessment diagram.

What happens if the sales-tax vote or a petition fails?

The plan answers this directly. If the 2.5% sales tax fails on November 3, 2026, "all future transition planning will be put on hold and remain the responsibility of HISID with no reduction on Assessment of Benefits beyond that from the Road Department transfer."¹ Roads still move to the City on January 1, 2027.

If the tax passes but the petition to form a Public Safety Urban Service District does not get enough signatures, the fire department remains with HISID. See what the November 3 vote decides.

Does the sales tax passing mean the whole transition happens?

No. It is one part of the funding framework. The ballot measure would authorize a 2.5% local sales and use tax for general fund expenses and capital improvements. The Long Range Plan identifies the City's added administrative costs as the principal reason for it, and says a "yes" vote means planning for the water and sewer and fire department transitions can begin. Each later phase still has its own requirements: the sewer bond must be retired, the Public Safety district needs a successful petition, and the recreation fee has to be set.

What property tax does the City charge now?

The City currently levies 4 mills, its first property tax, for collection in 2026². The Long Range Plan's road-funding projections use 5 mills as a planning assumption, which is also the maximum the Arkansas constitution allows a city³. Millage is established annually through the required public process. Where this site says "5-mill," it is modeling that assumption, not reporting an adopted rate. See How We'd Pay.

"My assessment is only $835 a year now. Why would I want this?"

That's a completely fair reaction. HISID has the legal authority to operate and maintain what it owns; the Long Range Plan's concern is that the assessment model is not financially sustainable over the long run: each year's assessment draws down a finite "benefit" balance, and the plan projects that, under its current assumptions, HISID's assessment capacity could be exhausted around 2037¹. The earlier feasibility study pointed to a related concern: other Arkansas improvement districts, including Horseshoe Bend and Cherokee Village, have been through litigation over their district structures.⁴ Their circumstances differ from Holiday Island's, so they are context, not a prediction. Planning the replacement deliberately is what keeps this from becoming an emergency later.

I'm retired and on a fixed income. Is there any relief built into this plan?

Some, yes. City property tax — unlike today's flat HISID assessment — qualifies for Arkansas's Homestead Tax Credit (raised to $675 a year for 2026 assessments)⁵ and, if you're 65 or older or disabled, a freeze on your home's taxable value so it never rises again⁶. The Recreation and Public Safety fees don't have an income-based discount, and that's worth saying plainly.

Why do vacant lots see costs go down while improved properties see them go up?

The earlier feasibility study estimated that vacant lots generate about $840,000 of HISID's $2.3 million in assessment revenue — but at 5 mills of property tax, those same lots would generate only about $33,000⁴. Replacing a flat per-lot assessment with property tax and usage-based fees necessarily shifts more of the funding responsibility onto improved properties and the residents who directly use city services like water, recreation, and public safety. The Long Range Plan names "making vacant lot ownership more affordable and increasing lot retention" as one of its strategic benefits.

Why does a "growth plan" matter for a transition that's mostly about paying today's bills?

Because the same revenue tools that fund the transition — sales tax, property tax on improved value, and Urban Service District fees — all grow as Holiday Island grows, without another rate increase. A single vacant lot becoming a home, or one more family choosing to move here, adds directly to that base. The Growth Plan page separates what the Long Range Plan says about growth from this site's own recommendations.

Even with a new sales tax and property tax, is Holiday Island still an affordable place to live?

Yes, based on this site's independent research into nearby towns and larger cities. Holiday Island's estimated property and sales tax after a full transition (about $4,390 on an illustrative household; this counts property and sales tax only, not Urban Service District fees, the HISID assessment or utility charges) comes out about 4% to 11% above nearby Berryville, Green Forest, and Eureka Springs — the same price range, with Holiday Island at the top of it — and roughly 12% to 32% below Dallas, Fort Worth, Chicago, and Kansas City on the same illustrative household⁷. That comparison assumes the 5-mill planning assumption and the proposed 2.5% sales tax. See the full breakdown, with sources, on the Tax Comparison page.

Why can't the city just raise property tax instead of creating new fees?

The Arkansas constitution caps city property tax at 5 mills³ — a hard ceiling, not a policy choice the City Council can adjust. That's why the plan relies on a mix of sources (sales tax, property tax, fuel-tax turnback, franchise fees, and new Urban Service District fees) rather than a single property tax increase.

Is the police department decision part of this site's overall recommendation?

No — deliberately not. This site supports completing the transition from HISID to a consolidated city government, but the sheriff-contract-vs-police-department question is treated as a genuinely open community decision. The Long Range Plan leaves it open too. Read the neutral, side-by-side comparison on the Public Safety page.

Where do these numbers come from?

The primary source is the City of Holiday Island and HISID Long Range Plan dated September 22, 2026. Detailed cost estimates that the plan does not restate, such as the fee and budget estimates, come from two earlier public presentations by Mayor Kees: a feasibility study on May 2, 2026 (updated May 6) and a follow-up on police and fire protection on July 11, 2026 (revised July 13). Those are labeled as earlier feasibility-study estimates where they appear. See About This Site for full sourcing.