Eureka Springs City Council takes on new form in 2019 with two newly elected aldermen joining incumbents to address their first set of annual budget workshop meetings. After winning his second term for mayor, Butch Berry chaired the Jan. 8 workshop consisting of aldermen Susan Harman, Harry Meyer, Bob Thomas, and Clerk/Treasurer Ann Armstrong.
Berry asked to delay the meeting until alderman Terry McClung arrived, consequently the meeting began 14 minutes late. Mickey Schneider arrived after the meeting began and Melissa Greene was absent.
Council must approve a new budget by Jan. 31 each year for each of its departments: Mayor’s office, Finance, Police, Municipal Court, Fire & EMS, and Building departments. The Parks & Recreation Commission budget is not approved through city council, nor is the City Advertising & Promotion Commission. Two aldermen serve on the CAPC, but none serves on Parks.
Primary sources for 2019 revenue are property taxes (estimated at $235,000), beverage tax (estimated at $172,000), parking meters (estimated at $127,000) ambulance services (estimated at $415,000), and sales tax (estimated at $735,000).
Parking and municipal fines, permits, licenses, recycling bags, grants, and other funding makeup council’s estimated $3.6 million budget.
Budget expenses were first, and in an effort to shed light on $11,000 of newly budgeted funds, CAPC Executive Director Mike Maloney discussed a legal agreement that predated new electees and staff.
“In 2012 Eureka Springs went into an agreement with Northwest Arkansas Council to participate in the WayFinding sign program,” Maloney said. “We have eleven signs in Eureka right now. Those signs were built and constructed by the Walton Family Foundation – that’s where the funding came from.”
Cost was estimated at $60,000, and Maloney stated, “Our agreement was over the next three years, we would do an additional eleven signs for a total of about $60,000.” The cost would be shared by CAPC and the city, with the CAPC covering $33,000, and the city paying $22,000 to spend over two years – $11,000 in 2019 and $11,000 in 2020.
“This is not the first time this has been presented to the city,” Maloney said. City Finance Director Lonnie Clark added, “and we’ve never had this in our budget until now.”
McClung said he was previously opposed to it, and Armstrong asked, “What is the Northwest Council?”
“The reason this whole project came about was the Walton Family Foundation felt like there needed to be a unification of signage throughout Northwest Arkansas,” Maloney answered. “They felt it was important for Eureka to be a part of that. Continuity was the reason.” Information on the NWAC can be found at www.nwacouncil.org
Additional 2019 budget expenses discussed were a city employee provision for a three percent pay increase. This is a two percent cost of living adjustment and a one percent merit increase per the department head’s prerogative. Last year council approved a five percent increase, three percent COLA and two percent merit.
Clark stated this provision is in line with studies done in comparison with other cities of similar populations and services. Schneider asked about the term “employee” and who exactly is qualified for the provision. Clark clarified that it does not include contract labor, such as some animal control labor currently budgeted for $17,560.
Berry reminded council that the city is still on a “Budget Watch,” downgraded from a previous “Budget Freeze.” The mayor’s office expects to spend $20,000 more this year for salaries and wages, for an estimated total of $229,188. ESPD expects to spend $17,631 more for salaries and wages, for an estimated total of $771,870, but ESFD has reduced salaries and wages by $34,300 for an estimated total of $626,978. Salaries and wages for Building and Municipal Court remain relatively level.
Clark stated the city does not have and, “cannot afford a tech person,” after staff indicated that not having someone allocated to assist with IT problems, “can be a struggle.” Clark stated that cross training of staff is a plan for the new year, which he indicates will help city processes run more smoothly by increasing the skill level of employees, as well as improve manager flexibility.
Organization of the Clerk/Treasurer budget has previously been viewed as a separate budget outside the general fund. Clark requested direction on changing the procedure to begin enveloping or pooling Clerk/Treasurer financials into the general budget under its own department similar to Finance or Building. Armstrong insisted this is an essential improvement for City processes.