Council takes sanguine look at budget

Eureka Springs City Council convened in the Auditorium lobby for a mid-year budget review July 27, and Finance Director Lonnie Clark noted sales tax for the city was 2.6 percent ahead of the same period one year ago. “That’s good news to me,” Clark said.

Alderman David Mitchell noticed a trend of sales tax revenue increasing a bit, finances being stable, and new funds from the water and sewer rate increase coming in soon. “Heading in the right direction,” Mitchell commented.

However, he also noticed expenses were still outpacing revenue even though the spending moratorium in still in place.

“But it’s improving,” Clark replied regarding the difference. Mayor Butch Berry added they have resolved an issue with collections for services provided by the Fire Department Emergency Medical Services, and the improvement with those numbers will make the whole vision clearer soon.

Clark referred to a pie chart representing the various revenue sources of the city, and was surprised to see parking fees as high as 12 percent of the total. He added that property tax revenue flows in late in the year.

Alderman Terry McClung said the important thing is the city is “lessening the drain on reserves.”

As for mid-year budget adjustments, Clark said, “We’re not that far off.” He will present a resolution to council to move funds around in the Transit Department and reconcile legal expenses. There will be upgrade expenses such as converting to LED lighting, which will begin saving the city money in 3.5 years. The Fire Department needs new mattresses, the Finance Department had to replace a computer and there is the payout for a policeman who retired.

He also mentioned Berry asked all department heads to attend a full-day course in Human Relations law.

Clark indicated many of the adjustments can be accounted for by shifting funds from here to there, but expected the bottom line might need a boost from reserves.

“We need tourists to shop like crazy,” Mitchell remarked.