Monday, Nov. 23, the Holiday Island Suburban Improvement District Commissioners unanimously approved Res. 2020-05 recognizing Holiday Island as an incorporated town. Chair pro-tem Bill Noonan directed the meeting in Ken Brown’s absence.
This resolution provides groundwork necessary for the district to begin contractual relationships with the town, including a lease agreement of the office space and administration services. The district foresees an initial expenditure of no more than $10,000 for office remodeling to share existing space with new town officials.
District Manager Lawrence Blood said that he and his staff have sufficient space and subdividing that space is financially beneficial to the district. “It makes complete sense to share the office with the city,” he said.
Blood said he is already fielding calls asking questions about the city, so said it will be nice to be able to send those calls to the city. Two contractual service agreements totaling $24,000 annually were discussed, one in the amount of $12,000 for the lease of office space, and one in the same amount for administration services.
The latter was heavily discussed and staff said they had consulted auditors who provided an opinion that a service agreement with the city was appropriate provided that the amount covered costs of services.
HISID employees will remain HISID employees but may have small additional services to perform such as forwarding phone calls or helping to provide newsletters. Blood said $12,000 is plenty adequate, but they reserve the right to adjust that cost if service demand increases.
HISID commissioner and Mayor-Elect Dan Kees said, “I think we are making huge mountains out of molehills, here.” Kees said the contract will clearly define the kind of services needed which he said is, “a very minimal amount of work.”
Blood verified that the city would have its own phone and computer systems which will not be an expense for the district.
Kees added that the town does not have plans to hire staff, nor do the services requested of the district administration require the district to hire additional staff. Commissioner David Orr, who was concerned with district employees working with the city, appeared satisfied that the services contract would offset employee administration expenses of the district.
“Quite frankly, the town doesn’t have any money right now,” Blood said, adding that in 2021 when revenues begin to flow “the town plans to be self-sufficient.”
Assessment lowering a possibility
In other HISID business, Blood discussed the preliminary draft of the 2021 budget which indicates a projected surplus of $283,413. Encouraged by the surplus, Kees said the number one reason to incorporate was to bring in revenue to reduce assessment fees and extend the long-term viability of public services.
With this surplus, commissioners and staff discussed decreasing the Holiday Island assessment fees up to 14 percent. Blood said, “It is not a promise,” but he is preparing to recommend some kind of a reduction of 2021 assessment fees.
Kees said he believes 14 percent is too much of a leap stating there are too many uncertainties tied to the revenue assumptions for 2021. Commissioners discussed a more conservative fee reduction in the 4-8 percent range. There was no vote on the assessment fee reduction.
Trails get a facelift
On the topic of trail amenities, Kees stated that the Carroll County Riders have offered their volunteer services to make minor improvements to Holiday Island hiking and biking trails. “This is a great continuation of the trails,” said Blood who noted the growth and popularity of neighboring Eureka Springs trails. Commissioners also discussed repairing and widening the 200 ft.-long marina sidewalk to 6 ft. and making ADA compliant improvements.
Another vote coming up
As a reminder, on December 1, residents of Holiday Island will be casting their votes to elect two new HISID commissioners replacing Bill Noonan and Nita Holley. Blood said that many residents have already exercised their early voting rights. The three nominees for the positions are Linda Peterson, Bob Dyar, and Suzanne Childers.
Last of the items
Dan Kees addressed his dual membership of both organizations—the district and the town. Kees stated that he intends to resign from his position as HISID commissioner as soon as Carroll County Judge Sam Barr issues the ratified order of incorporation for Holiday Island. Not able to predict an exact date of when that will happen,
The Holiday Island police report for the month of October indicated the Carroll County Sheriff’s office addressed 148 service calls including one felony arrest, four misdemeanor arrests, and 17 traffic stops.
The 2021 budget will be the primary item on the agenda at the next HISID meeting scheduled for Monday, Nov. 30.