The Long Range Plan
Where the transition stands now. On September 22, 2026, the City of Holiday Island and HISID released a Long Range Plan describing the intended transition of HISID services to the City and the eventual phase-out of HISID. The plan has been endorsed by both the City Council and the HISID Board of Commissioners.1
The plan is an 8-page document (Resolution 2026-015). The button opens the same file the City links from the "View Long Range Plan" button on cityofholidayisland.com. If that link ever changes, start from the City's homepage.
The idea in one line
Holiday Island became a city in 2020.1 The Long Range Plan is the roadmap for finishing that step: moving the services HISID still provides to the City, phase by phase, so that the community ends up with one primary elected government and one clear place to be accountable. Why that matters →
What changed?
Until this fall, the community was reviewing feasibility studies: a May 2, 2026 presentation asking whether the City could take over every HISID service, and a July 11, 2026 follow-up on police and fire. Those were explorations of possible scenarios.
The September 2026 Long Range Plan moves the discussion from "could this work?" to an endorsed framework and sequence: five phases, in order, with a target year for each. This page summarizes what the plan says. Everything here is drawn from the plan itself unless it is labeled otherwise.
What the plan sets in motion
- Roads. In the Long Range Plan's words, "The City will assume 100% of road maintenance responsibility starting in 2027." The plan says HISID intends to dedicate the remaining roads (about 55 miles) to the City by the end of 2026 and transfer the road department's assets, and that "the City will assume 100% of road maintenance responsibility starting in 2027."
- HISID has committed to lowering the assessment once it no longer carries the road department expense. The plan says HISID passed a resolution to that effect; the amount will be set in the budgeting process.
- The sequence for everything else is set: water and sewer, then fire and public safety, then recreation, then the phase-out of HISID.
- A 2.5% sales tax question goes to voters on November 3, 2026.
What is not finalized
The later phases still depend on steps the plan itself describes:
- The outcome of the November 3 sales tax vote
- Annual budgets, including the 2027 road budget, which the plan calls "not firm approved budget numbers"
- Property tax millage, which is set each year
- Retiring the sewer bond
- Urban Service District petitions and fee amounts
- legal processes for winding down HISID
- Operational decisions, such as how policing is provided
- Public input
A plan, not a contract
The plan is direct about its own limits. Its foreword says "some portions of this plan may change or not materialize due to legal constraints, funding challenges, and community input." Its summary adds that the plan is "not a binding contract but rather a good faith projection of what the City and HISID are evaluating and undertaking."
So the accurate reading sits between two mistakes. The transition is no longer hypothetical: both governing bodies have endorsed a framework and the first phase is under way. But it is not finished or legally locked in either.
The five phases
Years shown are the plan's own targets. Apart from roads, treat them as planned under the Long Range Plan, not as guaranteed completion dates.
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Phase 1 · 2027
Roads
Endorsed · Starting 2027Budget not yet final- January 1, 2027: the City assumes 100% of road maintenance responsibility.
- Since incorporation in 2020, HISID has dedicated 14 miles of road to the City, and the City has resurfaced about 12 miles. Through 2026 the City will have covered about $1.28 million in road resurfacing and maintenance.1
- HISID plans to dedicate the remaining roads, about 55 miles, by the end of 2026 and transfer the road department's assets.
- Holiday Island maintains 69 miles of road. The plan notes a typical city of 2,500 people has 5 to 10 miles, while state turnback money is based on population, not road miles.
- HISID's assessment is expected to decrease because the road department expense moves to the City. The amount will be determined during budgeting.
-
Phase 2 · 2027/28
Water & Sewer
PlannedAfter sewer bond is retired- HISID issued a $5.6 million bond in 2008 to upgrade the sewage treatment plant. It is scheduled to be retired in October 2031.1
- Collections have exceeded debt service, so the plan says the reserve fund "could potentially be sufficient to retire the bond as early as 2027 or 2028."
- Once the bond is retired, the complete water and sewer works would transfer to the City.
- At that point the assessment would be reduced by $54.25, the sewer loan amount shown on the annual assessment bill, and the Sewer Debt charge on water bills would be eliminated.
- The utility is described as revenue neutral: Arkansas law requires rates to cover operating costs plus a reserve for major repair and replacement.
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Phase 3 · 2028
Fire Department & Public Safety
PlannedSubject to petition- The current plan is a Department of Public Safety Urban Service District, reporting to the mayor, that would include both policing and the fire department.
- "There are no plans to change how the fire department operates."
- The district would be funded by a user fee added to the water bill, estimated at $50 to $56 a month if the City continues to contract with the Sheriff's Department.1
- A new deputy agreement would be negotiated with Carroll County unless deputy coverage is judged not to be the best approach, in which case the City could potentially establish a police department. That choice is not settled. See Public Safety.
- The district would only be formed if enough registered voters petition for it. If the petition drive fails, the fire department would remain with HISID.
- After this transition there would be a corresponding reduction in the HISID assessment.
-
Phase 4 · 2029
Recreational Amenities
PlannedFee to be set in 2029- The golf courses, sports complex, marina, clubhouse grill, hiking trails and campgrounds would move to a Parks and Recreation Urban Service District reporting to the mayor.
- Costs would be covered by revenue the amenities generate plus an Urban Service District fee.
- The fee amount is not yet established. The plan says it will be determined in 2029 and will depend on amenity revenue at that time and any operational changes.
- The assessment would be reduced again after the transition.
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Phase 5 · 2030+
Phase-out of HISID
2030+No completion date- HISID would commit to phasing out the district "if and when all transitions are completed and operating under the City structure."
- The plan calls this legally complex: paying off all debts, liquidating remaining assets, resolving delinquent assessments and fees, determining the status of tax- and assessment-delinquent lots, records retention, and more.
- "Due to the complex nature, no exact completion date can be projected at this time."
- The annual assessment would be eliminated once all debts are satisfied and there is no longer a need for district revenue.
Source: City of Holiday Island & HISID Long Range Plan, September 22, 2026, pages 4–8.
Where the November 3 vote fits
The ballot measure would authorize a 2.5% local sales and use tax for general fund expenses and capital improvements.2 That is the legal authorization. The Long Range Plan explains why the City is asking for it, and the reason it gives is administration. Today the City and HISID each carry their own administrative overhead. The plan projects that a single administration would cost far less than the two combined, but more than the City spends now.
| City, current | $203,087 |
|---|---|
| HISID, current | $890,343 |
| Combined, current | $1,093,430 |
| Long-term projection, City only | about $640,000 |
| Increase for the City | about $437,000 |
The plan says that incremental cost "is planned to be covered by a 2.5% sales tax" on the November 3 ballot, and it describes the two outcomes this way:
If the tax passes
"Planning for the transition of the Water and Sewer Department and Fire Department can be started." Passing the tax does not complete those phases. Each still needs its own steps, such as retiring the sewer bond and a successful petition.
If the tax fails
"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." The road transition in Phase 1 is not tied to the vote.
Source: Long Range Plan, September 22, 2026, "Administrative Costs," pages 5–6. The $502,660 annual revenue estimate used elsewhere on this site comes from the earlier May 2, 2026 feasibility study; the Long Range Plan does not restate a revenue figure for the tax.
One HISID assessment, five transition phases
The assessment does not disappear in one step. The plan describes it stepping down as each responsibility leaves HISID, and ending only when the district itself is wound down.
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Today
The annual HISID assessment helps pay for several services at once.
RoadsSewer loanFireRecreationHISID administration -
January 1, 2027 · Roads transfer
Reduced because the road department expense leaves HISID. Amount: to be determined in HISID's budgeting process.
RoadsSewer loanFireRecreationHISID administration -
2027/28 · Water & sewer transfer
Reduced by $54.25 once the sewer loan is paid, and the Sewer Debt charge comes off water bills. This is the only exact reduction the plan states.1
RoadsSewer loanFireRecreationHISID administration -
2028 · Fire & public safety
"A corresponding reduction" if the Urban Service District is formed. Amount: not stated in the plan.
RoadsSewer loanFireRecreationHISID administration -
2029 · Recreation
"Reduced again after the transition." Amount: not stated in the plan.
RoadsSewer loanFireRecreationHISID administration -
2030+ · HISID phase-out
The assessment is eliminated once it is certain all debts are satisfied and the district no longer needs annual revenue. No date projected.
RoadsSewer loanFireRecreationHISID administration
Two cautions. First, this is a diagram of the order, not of dollar amounts: the plan gives one exact figure ($54.25) and leaves the rest to annual budgets. It says HISID's administrative expense "would go away once all services are transitioned" and that the resulting reduction "likely can be done in steps." Second, every step after roads depends on the November 3 vote and on that phase actually happening.
Lower assessments are also only half of a household's picture. As services move, new City charges take their place: property tax, the proposed sales tax, and Urban Service District fees. See How We'd Pay and the Cost Calculator.
Source: Long Range Plan, September 22, 2026, pages 5–8. The grouping of services shown as chips is this site's simplified illustration.
The 2027 road budget projection
The plan includes a projected 2027 City road budget at 100% City responsibility. It labels these figures plainly: "these are not firm approved budget numbers as of this printing."
| Beginning fund balance | $655,369 |
|---|---|
| Governmental revenue (state turnback and similar, including a one-time $400,000 grant) | $725,371 |
| Culvert installations & road cuts | $62,000 |
| Transfer from general fund (property tax revenue) | $150,000 |
| Total revenue | $937,371 |
| Operating expense (HISID's 2026 figure plus 10%) | $406,604 |
| Vehicle & equipment replacement | $90,000 |
| Repaving: Woodsdale Drive and part of Stateline Drive | $440,000 |
| Total expense | $936,604 |
The repaving is funded mainly by a $400,000 grant. The plan notes this is the second grant the City has received and that "grant money is not available every year," so 2027 is not a typical year.
The plan labels the general fund transfer as coming from "5 mill property tax revenue." The City's first property tax, levied for collection in 2026, was set at 4 mills3,4. That difference matters for your bill and is explained on How We'd Pay.
Source: Long Range Plan, September 22, 2026, pages 4–5. Line items are summarized; see the plan for the full table.
Why the plan says this is needed
HISID funds part of its work through an annual assessment on "benefits." The plan explains the catch with a simple example: if a road raises a lot's value from $1,000 to $5,000, the $4,000 benefit can be assessed over time to maintain the road, but each assessment draws that balance down. "Once my 'benefit' balance is reduced to zero, HISID can no longer assess the tax, and a big source of revenue goes away."
The plan's own reading is that the statute "has an inevitability built into it that suburban improvement districts will have an end of life and were primarily meant to help build infrastructure." That is the plan's characterization of the funding model, not a claim that HISID lacks authority: Arkansas law lets these districts operate and maintain their improvements and assess for it.5 The date the plan gives is a financial projection under its own assumptions, not a statutory deadline: "If nothing changes, at the current 3.5% annual rate of inflation, HISID would reach that point in 2037."1
The strategic benefits the plan lists
- Long-term financial viability that does not depend on statutes written to create infrastructure without a plan for long-term operation and maintenance.
- Making vacant lot ownership more affordable and increasing lot retention.
- Relieving property owners of the cost of defending against lawsuits and lot foreclosures, which the plan says has totaled tens of thousands of dollars over the years.
- The stability developers and business owners need to invest in the community.
- The stability required to protect property values.
Source: Long Range Plan, September 22, 2026, "Background," page 3. For this site's own argument, see Why This Matters and the Growth Plan.
Public input is open now
The City says printed copies were mailed to full-time residents in late September and early October 2026, and it is asking residents and property owners to read the plan and respond during October6. According to the City's announcement, you can:
- email office@cityofholidayisland.com with the subject "Long Range Plan Feedback"
- use the contact form on the City's website, or send comments by mail
- attend the public meetings the City plans for Saturdays in October 2026 (dates are posted on the City's meetings page)
- speak at City Council and HISID Board of Commissioners meetings
Source: City of Holiday Island, "Long Range Plan Now Available: Your Input Is Needed." Confirm meeting dates with the City.
Sources cited on this page
- City of Holiday Island & Holiday Island Suburban Improvement District, Long Range Plan, September 22, 2026 (Resolution 2026-015). Link
- University of Arkansas Division of Agriculture, Cooperative Extension Service, "Arkansas Voters Have Local Ballot Issues to Decide in November Election," August 2026 (Holiday Island measure: a 2.5% local sales and use tax for general fund expenses and capital improvements, per the Carroll County Clerk). Link
- City of Holiday Island, "State of the City: Planning for Holiday Island's Future," January 2026. Link
- City of Holiday Island, "Moving the City Forward," August 2026. Link
- Ark. Code Ann. § 14-92-201 et seq. (suburban improvement districts), including §§ 14-92-210, 14-92-220 and 14-92-239 on operating and maintaining district improvements, and § 14-92-225 on assessments.
- City of Holiday Island, "Long Range Plan Now Available: Your Input Is Needed," October 2026. Link