City Finance Director Michael Akins addressed city council Monday evening to go over monthly and mid-year budget reports before the regular meeting. Sales tax collection was up in June by $14,000 compared with last year, and July and August also showed increases from 2023.
The majority of expenditures for June and the past year have been going into sewer and water. Total revenue for the year is $5,095,000 and expenditures totaled $6.2 million, leaving a $1.1 million deficit. Expenditures besides water and sewer are sliding doors for the transit building, dash and body cams for the police department, ambulance cots, and some new vehicles.
Akins said he the amount of water purchased went down after leak repairs were made earlier in the year.
Funds designated to the state for Black Bass Dam and the roundabout construction are being put off until 2025 as those projects won’t be undertaken this year. Police Chief Billy Floyd requested a dollar an hour raise for officers, and the building inspector has been moved into the Public Works office.
Akins had talked with Pinnacle about updating the computers and IT system for city hall, police and fire departments, and public works so they would all be on the same program. He estimated that this would cost $80,000, however $26,000 budgeted to the police department for updating their systems would cover part of the cost.
The main topic once the regular meeting started was the opening of a permanent entertainment district at Pine Mountain Village. Most speakers who opposed were concerned about the noise, security, and alcohol. Alderman Susane Gruning made a case for how the permanent district would enhance development, bring in needed revenue, and could attract new businesses to the east side of town.
She added that the police and fire departments had the right to shut it down at any point and that it would be a controlled and regulated environment that was family friendly and allowed for outdoor consumption of alcohol.
Alderman Harry Meyer argued that Eureka Springs had recovered from COVID quicker than other cities nearby in terms of tourists, and didn’t think the district would help businesses either downtown or at the Pine Mountain site.
Brothers Marshall and Kyle Johnson, who own the property, reiterated much of what Gruning said adding that they were paying for security and had just opened Pauly’s restaurant. They said they also run the Harley Davidson store and had worked on improving the property to attract tenants.
Alderman Autumn Slane told the brothers they were great promoters and that she thought the permanent district would be good for business. Alderman Steve Holifield asked the brothers about a large restaurant they had been granted permission to start, but Marshall said everything changed when COVID hit, and they had to change their plans.
Meyer confronted the brothers, saying their buildings had issues and that the Johnsons had run tenants they had out of their shops. Marshall Johnson responded that there were people not paying market value and also not keeping the shops in repair. Meyer fired back that they needed to get rid of the termites. Marshall rebutted that termites were there.
Alderman David Avanzino changed the subject asking about the cup size for drinks allowed outside and whether the Johnsons would have to ask council for permission to have special events. City Clerk Ida Meyer explained that they have an amplified sound permit and are allowed to have music from 10 a.m. to 10 p.m.
Alderman Terry McClung called for it to go to first reading and then council could come back next meeting with amendment recommendations. Meyer suddenly asked the other aldermen if the chief of police had contacted any of them, because he had been contacted by Chief Floyd asking what needed to be done to get the district made.
McClung said he talked quite often to the police chief about lots of things, and Slane added that many people want this to go through because the city needs the taxes and revenue. Meyer implied that the police chief was coercing council, but Mayor Butch Berry shut down discussion and the first reading was done. Meyer was the only dissenting vote to allow the permanent district.
Director of Public Works Simon Wiley there were several backups and leaks he had dealt with over the last two weeks. He said that the rate study would be presented to council by October. McClung asked Wiley if he had written a letter asking when the highway would be repaired and redone, and Wiley said he was told 2028 was the soonest the project could be undertaken, with McClung insisting that was ridiculous. McClung asked about issues with installing the new water meters and Meyer asked about billing complications, and Wiley said that Akins had taken over dealing with both issues.
There was a very brief discussion about the tree ordinance; clarifying that people are only required to get one permit to cut down live trees and dead trees only need approval from the building inspector.
Meyer then said he wanted a discussion of the ordinance about the police chief submitting activity reports every month to council, and a report with a budget at the end of the year. He said the police chief was sporadic in making these reports and that when Meyer had brought it up to Berry, he claimed that Berry had said that the reports were not needed.
Berry resolutely responded that he had not said that. Meyer said he should have brought the email between them for proof. Meyer then asked the other aldermen if they wanted the reports, with Berry telling him he needed to address the chair. Slane said she felt more information was always better and McClung added that it was written in the ordinance, so they needed it. Berry replied that it would be done.
In final comments from aldermen and the mayor, it was brought up that the petition to put disbandment of the CAPC is on the November ballot. Slane, Avanzino, and Holifield urged voters to educate themselves on the issue.