Mayor Dan Kees gave an update on the Arkansas Department of Transportation road re-pavement program during Holiday Island City Council’s regular Feb. 15 meeting. Kees told council that they were having difficulty receiving lost months of 2021 tax money from the county’s 3-mill property tax. This brought out expressed frustration from members and Kees said he didn’t think that going forward there would be any problems for 2022’s levied taxes, but it may take an ordinance to get the money to Holiday Island.
The loss of that property tax and not knowing when the county would be able to disburse those funds means that the city will have difficulty paying the $307,000 needed to fund their portion of the paving program of which ARDOT is supplying the other $300,000 on a $607,000 low bid. Kees told council that the state needed the money to release the contractors and that it would be illegal for him to commit to something with money they do not have in the Street Fund.
ARDOT told Kees that if they send $250,000 ASAP, ARDOT would release the contractor for $550,000 worth of work for Holiday Island, and they would be put on the schedule for 2022. Once Holiday Island sends the leftover balance of $50,000 for their portion, the contractor would be released for the entirety of bid cost. Kees said that with what money is in the Street Fund currently, council transfers, as a loan, $70,000 from the General Fund Reserve and $20,000 from the General Fund, they would be able to pay the entirety of the project by the April distribution of tax revenue.
Kees also pointed out a statement in the invoice saying that the city would be liable for overages in materials was not entirely accurate. If the contractor spends over the bid amount they will need to go to council to ask for more money. Council would then have an opportunity to approve any overages that the city would pay for or “hold their feet to the fire” and refuse to approve further funding.
Resolution 2022-002 allows for the transfer and loan of money from the General Fund and its Reserve to the Street Fund to pay for the project, and the loan is to be settled by transfer of money from the Street Fund back into the other line items prior to the end of the fiscal year. Kees pointed out that even if they don’t receive money from the past months from the county, they would have enough in the Street Fund by the end of the year.
The resolution passed unanimously.
Other Items
- Council voted unanimously on Resolution 2022-001 to adopt the Carroll County Hazard Mitigation Plan. The resolution allows for the city to apply for additional federal funding through the Arkansas Department of Emergency Management and Federal Emergency Management Agency.
- Ordinance 2022-003 authorizing updates to city Building Code, and an emergency clause to make its changes, immediate passed unanimously. The changes fix typos, as well as adds language, requiring inspection for installation of new manufactured housing and prohibits any alterations that would violate the federal Manufactured Home Construction and Safety Standards. The ordinance also adds language regarding discharge of stormwater from a property and easements for installing and maintaining drainage facilities.
- Ordinance 2022-005 adopting Title 14 Zoning into city code and establishing fees and penalties for violation therein passed first reading unanimously.
- Resolution 2022-003 authorizing the mayor to enter agreement with Carroll County and Holiday Island Suburban Improvement District to provide law enforcement services was tabled after discussion and concern about the city needing to pay for a vehicle for a second deputy. Council is waiting on more information from the county.