Eureka Springs City Council met on Monday, July 27 for a regular meeting preceded by a budget workshop. City Finance Director Michael Akins reported sales tax collections in May were down by about $12,000 – still up for the year about $34,571. Akins explained the May ’26 loss was not far from that of the previous year, and how collections rise as the season peaks. He noted that in 2025, 43 percent of taxes were collected during the first six months, with 57 percent collected in the second half. This year, June has shown an approximate $4,000 increase, and July a $33,000 increase. Collections to date are up about 4% from last year.
Akins clarified monthly collection reports reflect months prior. Sales tax is collected by merchants, remitted to the state for processing and a month-long hold, then returned to the city the following month; e.g. May’s taxes reflect March, while July’s reflect May.
In public comments, Lloyd Lybee, co-owner of Adventure Art, said their sales had been up by 50 percent of last year, but since the trial entertainment district had begun, sales had plummeted. Lybee said he and others have witnessed people turning around at the sign at Mountain and Spring Sts. – likely misinterpreting it to mark the end of downtown. Neighboring business owners he spoke with said their sales were also suffering.
At the meeting of July 13, council voted against a proposed ballot measure that would have allowed voters to approve the creation of a permanent entertainment district in downtown. Mayor Butch Berry returned the measure to council’s agenda on July 27, considering that two aldermen had been absent for the vote.
Alderman Steve Holifield asked if council were able to expand the map to be more inclusive should they decide to place it on the ballot. Alderman David Avanzino said the last he’d heard from the Chamber of Commerce was that Police Chief Billy Floyd would not sign off on an expanded map, and asked Floyd for clarification. Susane Gruning said she interpreted that as after the trial period; the chief would consider it.
Floyd responded that he is resistant to sign off on it and would probably always be resistant to sign off for an area that included state highway traffic with limited crosswalks, but would listen to any argument.
“I feel like if I’m signing it, I’m endorsing it, and that’s ultimately the way the application reads,” he said. “I don’t want to endorse something that I don’t believe we can enforce, whether it’s because I think something’s gonna happen or not. I don’t want my signature on something that I can’t truly say that we’re equipped to enforce, until we get more data. So maybe there’s some way way we can change the application process or your decision making without my signature.”
Alderman Rachael Moyer asked if the chief had any data from the first weeks of the trial.
“The way I’m seeing it so far – is typical summer,” Floyd said. “Yes, the calls are up and we’ve had a few events, but it’s tourist season. Maybe one or two calls that were directly related to the ED but could those have happened if it hadn’t been an ED? Yeah. It has happened.” Exact call data has yet to be examined.
Floyd added that downtown officers – though not overburdened – are still adjusting to functions of the trial district including added duties in reporting, telling people where to get wristbands, and informing them of the rules. Officers have also reported picking up abandoned containers.
Gruning described a mischaracterization of the full picture and said “as council our responsibility is to balance individual responsibility, public safety, tourism, economic vitality, in the interests of the entire community. Reasonable people can disagree on whether an ED is the right policy, but I believe that decision is one the legislature intended city councils to make through ordinance and one I believe we were elected to make. Some issues absolutely belong before the voters such as taxes, major financial commitments – an ordinance does not. It is our responsibility to make the decision.”
Alderman Terry McClung described the repeated reexamining of the issue as a waste of time. McClung suggested council stick with the original plan as intended, saying he did not want to make the decision while lacking the information. Moyer agreed with incremental, evaluative policy making.
Avanzino said it was insulting to voters to say it would be confusing amongst other measures on the ballot and asserted that it made no sense to anyone for council to say one thing and vote another. Berry agreed but concluded they would drop it if that were council’s choice. Avanzino asked to back up and motioned to suspend the rules and read Ord. 2390 by title only for its first reading. Holifield seconded. The motion failed without support from McClung, Meyer, Moyer, and Gruning.
Noise Ordinance
Holifield illustrated an ongoing issue of noise ordinance violations, detailing instances where excessively loud motorcycles and cars have eclipsed the sound of his tv set when driving past his home. “It’s an assault on our hearing,” he said, posing the question of what can be done.
Avanzino concurred and asked the police chief how many staff members he had for patrolling. Floyd replied he had ten.
Moyer suggested looking into noise monitoring terminals but said she didn’t know much about them. Floyd mentioned raising more awareness and affirmed that a call can always be made to the police department to report violations.
Other Business:
- Ordinance No. 2389 regarding Planning Commission membership was passed. To clarify: this ordinance allows people from other commissions to serve on the Planning Commission; which was not allowed in the past.
Moyer inquired about the issue’s context; McClung indicated it was due to a shortage of commissioners.
The ordinance was read by title only for its third and final reading, followed by unanimous approval.
- Resolution No. 913 allowing a temporary entertainment district at Pine Mountain Village for Bikes, Blues, & BBQ passed unanimously.
- Gruning presented aldermen with a list of ideas to help property owners afford to fix sidewalks. Planning Director Cassie Dishman and City Building Inspector Paul Sutherland said 19 letters were sent following the sidewalk assessment, and minimal pushback was received. City Legal Counsel Heather Owens advised that not much can be done legislatively and it was primarily a task of commissions to explore assistance programs.
- Alderman Harry Meyer requested the arrangement of a town hall meeting to educate residents about the one percent sales tax and bond issue measures appearing on November’s ballot. Owens emphasized that council must only present facts, not promote the tax itself.
- Moyer announced the city will be conducting a Low to Moderate Income survey that residents will be invited to participate in that could lead to the city receiving significant funding. An LMI survey documents whether a proposed project will benefit low-moderate income residents, used to apply for Community Development Block Grants to fund infrastructure projects.
- Aldermen acknowledged the passing of Elise Roenigk, proprietor of the 1886 Crescent and 1905 Basin Park Hotels.
- A Missouri certified addictions RN wrote in to express concerns about the expansion of Dr. Paul’s rehab center.