There was disagreement between city directors James Calhoun and Ann Sanders about the purchase of land at 231 S. 16th St. during Thursday night’s regular city board meeting.

Dorinda Suitor, utilities manager, told the board that the water and sewer committee voted to recommend the city purchase the lot, which has a house on it and is on a block that is mostly owned by the city. The representative of the estate offered to sell the land and the house for $30,000, but City Manager Jimmy Bolt later had the land appraised. It appraised for $20,000. After negotiating, the landowner agreed to accept $25,000.

Calhoun said he was OK with the city buying the land, but not at the asking price. He said $25,000 is 25 percent more than the appraised value. “I have a problem with that. As a steward of the citizens’ money ... I would be willing to accept 10 percent of the appraised value.” He said he would be willing to have Bolt further negotiate the price of the land before moving on with the decision. “If it was your money or my money, would you personally pay 25 percent more than the appraised value?”

Mayor Chuck Hollingshead explained that the market value of a piece of property is often more than the appraised value.

Sanders said she approved purchasing the land. “The water department is now storing equipment at the fairgrounds, and paying money there for storage,” she said. “I think we need to buy it ... I’m for it 100 percent. I don’t think the $5,000 is the issue.”

Calhoun said that he had no other motive to his opposition. “It’s just the way the citizens perceive the way we handle funds,” he said. He also noted the board will soon be making a decision whether to raise water and sewer rates.

Director Brenda Hagerich asked Suitor what tangibles came along with the property. Suitor said there are 17 people from all over the country who will have to sign off on the land, and if a decision is not made soon, the matter could be tied up in court. She said the land is also needed for storage and for the city to move forward with street improvements in that area. “It helps us secure our facilities. There’s no price I could put on it.”

Bolt explained why he passed the decision on to the board, since there is always a difference between the appraised and assessed value of land.

The motion passed 4-1, with Calhoun opposing the vote. Directors Anthony Owen and Joe Phelps were absent.

In other business, the board passed its second reading of the 2009 budget.

In Bolt’s report, he said the city is working with the Arkansas Historic Preservation Program Community Outreach director. “They have reviewed the buildings located in downtown — Clinton and Main streets between Sixth and Eighth streets — this week,” he said. Business owners will be contacted to attend a meeting to inform them about becoming a Historical Commercial District.

He said the water and sewer rate increase proposal was recommended to be forwarded to the board. “I want to thank the water committee for forwarding this recommendation that is in the best interest of that department. Now it is staff’s responsibility to see if this is in the city’s best interest.”

He said he asked Suitor have a meeting with major water and sewer users, including the universities, wholesale water customers and industry representatives to review the proposal. “I am currently analyzing the rate proposal and at this point I still have more questions to ask before I am willing to proceed,” he said.

In routine business, Hagerich said she was part of a group that awarded nine Single Parent Scholarships on Thursday in Town Hall, for a total of $4,250. “These scholarships go to women pursuing a higher education to become self-sufficient, and I am proud to be a part of this group,” she said.

The next city board meeting is scheduled for Thursday, Dec. 4, at 7 p.m. in the Town Hall Board Room.

The public is invited to attend.