Mountain Home property owners are likely to see no changes in the city’s 2-mill property tax for the upcoming year, pending a resolution expected to be approved at the City Council's meeting on Thursday at 5 p.m. in the Council Chambers at 720 Hickory Street.

The levy, which has been consistent for years, must be certified by the city before being sent to the Baxter County Clerk and Collector. Under Act 585 of 1971, the tax will be assessed in 2026 and collected in 2027. Arkansas law permits cities to levy up to 5 mills for general purposes without requiring voter approval, allowing Mountain Home to continue requesting less than half the legal limit.

After City Clerk Scott Liles certifies the levy, County Judge Kevin Litty will receive it as part of the county’s annual tax collection process. The Baxter County Quorum Court is set to ratify all certified county property taxes during its Dec. 1 meeting, as required by state law. Property tax collection involves several county officials, including Assessor Jayme Nicholson, Clerk Canda Reese, Collector Teresa Smith, and Treasurer Jenay Mize. The city itself does not directly handle property tax collection.

A mill represents $1 for every $1,000 of assessed property value. For example, a home valued at $200,000 would have an assessed value of $40,000 under Arkansas' state formula, resulting in an $80 annual city tax before state homestead credits are applied. These payments are made to the county, not directly to Mountain Home.

Also on the agenda is an annexation proposal involving about 2.3 acres at the intersection of U.S. Highway 62/412 and County Road 390. Two property owners, Hometown Commons LLC and Rick Hoover Properties LLC, filed the petition, which Baxter County Judge Litty approved on Aug. 28 after confirming it met state requirements for a 100% owner annexation. The annexed land would fall under Ward 1 and be zoned Commercial C-2C. Existing billboards on the property will be grandfathered in under city ordinance but would be required to comply with current sign regulations if removed.

City officials must extend police, fire, and sewer services to the annexed parcels within three years. The ordinance would take effect 30 days after its passage. Attorney Ted Sanders is expected to present this item to the council, though specific development plans for the property remain undisclosed.

The council may also revisit a proposed fee ordinance introduced on Sept. 17. City Clerk Liles noted that he could not locate documentation for existing fees charged by the Building Department, prompting a formalization and potential increase. Proposed adjustments include raising the cost of subdivision plats from $75 to $200 and fees for large-scale development plans from $25 to $200. Council members requested comparisons from similar cities before proceeding; Liles indicated the measure may be tabled to Oct. 15 if further research is needed.

In addition to the main agenda items, the council will review minutes from its Sept. 17 meeting, hear committee reports, and review bank reconciliations. Notable updates include the completion of the Community Center construction at a cost of $3,061,895.51. The Street Department reported progress on fishing piers and a walkway at the McCabe Park pond, with the Don Webb fishing derby scheduled for Oct. 10. A full rebuild of Langston Street from Redbud Street to Highway 62 has also begun.

The Fire Department reported handling 368 calls in August, an increase from the 277 calls in August 2025, bringing the year-to-date total to 2,616 compared to 2,353 during the same period last year.

The meeting is open to the public and typically broadcast live via social media by XL7-TV.