A one-item agenda was all Eureka Springs City Council had Monday night: A lottery drawing for the 2021 food truck location at 179 N. Main was awarded to Rob Knapp.
Out-going alderman Bob Thomas was unanimously voted onto the Planning Commission replacing out-going LauraJo Smole who is alderman-elect for 2021/22. Tommie Zwernemann was unanimously appointed to serve on the City Historic District Commission.
The 2021 budget was presented at a workshop Monday night by Finance Director Lonnie Clark who dubbed himself “the bean-counter.”
Partway into 2020, Clark was asked to adjust down the budget for the pandemic, which he did. Now he is pulling those numbers back even further—another 12 percent. Clark’s proposed 2021 budget projects only $3.71 million in general fund revenue compared to the amended revenue of $4.2 million in 2020.
This approach is a paradox compared to the City Advertising and Promotion Commission’s budget projections which are headed in the opposite direction. For 2021 the CAPC projected 31 percent revenue growth from their adjusted 2020 budget. Both entities earn revenue by taxing sales, but they have very different perspectives of the future.
Because of Clark’s shrinking revenue prediction, departmental funding must be cut by almost half a million dollars to balance the budget. One area of change is in the way the city accounts for receiving and paying out the Parks’ sales tax revenue, a difference of $177,500.
Additionally, the mayor’s office reduced salaries and wages by 33 percent or $72,984. The Fire & EMS budget was reduced by $100,783, primarily by reducing overtime and workers’ compensation insurance. The sidewalk repair/renovation fund was cut from $10,000 to zero, public restroom utilities and expenses were cut by 75 percent from $30,000 to $7,500, and the economic development fund was cut from $10,000 to $5,000.
When asked by alderman Bob Thomas if the budget included a cost-of-living-adjustment for employees, Clark said no and added, “I don’t think it would be responsible for us to do that at this point.”
Clark did say that if later in the year the city is earning better than predicted, adjustments can be made to address a possible COLA.
He also said the vote for approving the proposed 2021 budget is not expected until the New Year.
The next meeting is scheduled for Monday, Dec. 14 at 6 p.m.