City Advertising and Promotion Commission Finance Director Rick Bright presented the monthly income report for May’s collections at last Wednesday’s meeting. Tax revenue reported for June was down 58 percent, $86,901, compared to June 2019 – a drop from $149,374 in June 2019 to $62,472 in June 2020.
Year-to-date tax collection losses were not as severe compared to 2019 showing the CAPC’s lodging collections down $101,854 or 38.5 percent, and the restaurant collections down $98,376 or 31.6 percent. The year-to-date budget report shows the salary and wages expenses have exceeded the budget by 4.3 percent, or $5,358.
The overage of the salary and wages expense is most likely contributed to back unemployment insurance and payroll taxes paid on a contracted individual who filed for unemployment during the pandemic. The filing was flagged by the state, that then conducted an audit. The audit determined that the individual did not qualify as a contract employee and should be treated as a regular employee, forcing the CAPC to pay back taxes and insurance to January 2020.
Chair Carol Wright asked Bright, “So are we in violation?”
“We are not now, well maybe with Tracy’s [Johnson, CAPC event planner] contract but she hasn’t filed for unemployment so they haven’t brought it up to us,” he responded.
Bright stated that because of the state’s rules defining contract employees, the CAPC should review Johnson’s contract for state compliance and change the wording when it’s time to discuss renewal.
Bright reported a June-ending cash balance of $373,345. No changes were made to the amended budget from May, when commissioners cut the budget by $390,600 or 24.5 percent.
CAPC digs in on logo ownership
Interim-Director Gina Rambo presented the new Eureka Springs Arkansas logo guidelines intended to promote consistent use of the CAPC’s Brand Assets, prevent consumer confusion, and protect Eureka Springs’s intellectual property. The problem, as commissioner Terry McClung pointed out, is that the logo is not trademarked.
Commissioners unanimously voted to trademark the logo, a process that Rambo stated could be done for an estimated $200. An additional problem is that the Eureka Springs Parks Department is still violating the guidelines by changing the logo’s tagline to say Eureka Springs Parks and Recreation.
Rambo said she had a conversation with Parks Director Justin Huss about correct usage of the logo, however her efforts failed to align the Parks with CAPC guidelines, and Parks’ website still maintains their altered version of the CAPC logo.
According to the CAPC logo guidelines, Huss’s borrowing and altering the logo is considered improper use and is outside the standards outlined. “We just need it used correctly,” Rambo said.
The next CAPC workshop is scheduled for Wednesday, August 12 at 4 p.m. in the AUD.