At Monday’s Eureka Springs City Council meeting, Fire Chief Gary Inman gave a breakdown of ambulance service financials and information regarding the recently passed Arkansas Act 867, which allows ambulance service providers to charge private insurance companies up to 325 percent of the Medicare rate, or the amount the ambulance company bills — whichever is lower. Inman requested that council approve the 325 percent increase in ambulance fees.
“We’re by no means obligated or have to change our billing practices, but I think we’d be operating a lot closer to the bottom line than we are now,” he said.
Inman explained that Medicaid and Medicare pay “very poorly.” Under the No Surprises Act of 2020, service providers have been unable to go after remaining balances, or turn unpaid bills over to collection companies, with the exception of the uninsured. “We do operate in a deficit every year, and it is a significant deficit,” he said. Discussion was deferred until more information is gathered.
Alderman Rachael Moyer brought up financing the water and sewer system, suggesting alternatives to locals bearing the brunt of increases.
“Rather than rely on the rate increases to fund the needed water and sewer updates that we know we need, I feel like it would be more equitable to spread the cost of updates over all of those who come to Eureka Springs and enjoy the amenities here,” she said. “I’m interested in pursuing a municipal bond for water, sewer and street repair, and an accompanying sales tax to retire that bond. My understanding is that our financial standing would support this, and I know that conceptually at least this would spread the cost not just to the households in Eureka but to everyone who visits here.”
This raised questions for City Attorney Justin Eichmann and Public Works Director Simon Wiley. Wiley explained that due to Act 605, and the city having already gained approval of rate increases, they would have to spend an extra $20,000 to have them amended.
Alderman Terry McClung pointed out that given the city’s other bond would be paid off by 2027, the city could be in the position to issue a new bond. Alderman David Avanzino asked if it were possible to impose a tax that only tourists would pay, but legal counsel said no.
However, a vote could be held to invoke additional sales tax designated to share the cost of infrastructure repairs with visitors. Alderman Steve Holifield said he’d read an article about a small town in Oregon handling a similar issue by increasing water rates for homes used for vacation rentals. Eichmann also questioned the legality of that.
McClung motioned to have the mayor form an ad hoc committee regarding sewer and water repairs, replacements, and future revenue streams.
Back to the hospital
Mayor Butch Berry then yielded his agenda item, a continued discussion of Requests for Proposal, to Moyer, who presented a list of items council would ask from a review and reconciliation. Moyer iterated that she had help in compiling the list— noting that she’d been in communication with Berry and Financial Director Michael Akins.
Akins suggested council seek out a smaller company or individual CPA, since larger companies like Forvis tend to place small towns on the back burner. A motion was passed “to prepare an RFP for an independent review and reconciliation of hospital financials for a period of January 1, 2025 through June 30, 2025.”
Moyer said that in recent communications with the city finance director, Akins “mentioned another bank account,” and pointed to other unanswered financial questions.
“The commission did have an account that had about $16,000 in it,” Moyer said. “It was in the name of the commission and not the hospital. That has never been reported to us. My understanding is that they have closed that account as of the last commission meeting.
“Shouldn’t they be asking these questions of the CFO? If it’s true, as some people would argue, that the commission is a group of volunteers and they’re just simply reporting what’s given to them, then where the responsibility lies is with the CFO.
“While we’re waiting on a reconciliation process, I was considering asking whether council wanted to put forth a resolution asking for a formal request for an aging accounts receivable schedule.
“Copies of all bank account statements – and I would say formally all bank account statements both those that the hospital and the hospital commission are responsible for – I didn’t realize we had to make that distinction when we asked for that before.”
Discussion led to alderman David Avanzino motioning to establish a workshop with the hospital commission to include the CFO and city council. Moyer added that both the commission and council be able to add to the agenda.
Final Business
- Avanzino announced that the bidet company “Tushy” is back on board and will start with phone calls to municipal leaders and community members.
- Susan Harman’s renewal on the Planning Commission was approved.
- Public Works is understaffed and hiring for four positions.
- Doug Beard was nominated to sit on the Cemetery Commission.