Monday’s city council meeting opened with a public hearing of the city transit system. Transit Director Ken “Smitty” Smith presented an update and budget report that reflected underfunding due to rising costs and cuts in federal funding. Smith also said they are having difficulty hiring drivers and are paying more overtime than he’d like in order to keep transit systems running at optimal levels. They have also had to pay more for auto parts, particularly electronic components not made in the United States.
After an order was placed for the new electric tram in early January, the manufacturer notified transit of a $20,000 price increase due to imposed tariffs. For 2025, transit requested money for two trolleys funded by the Federal Transit Administration but were only awarded help paying for one. They decided to purchase the second trolley themselves. They were told that the manufacturer is running 14-16 months on order, so to not expect arrival until 2026.
“We requested funding for one 24-foot trolley for 2026; the cost of the trolley was estimated at $270,000 based on the quote from the manufacturer,” Smith said. “Also, for 2026 we have requested funding for a 1000-gallon gasoline tank. We have been told the vehicle chassis under 30 feet, which we need to order, are no longer made with diesel engines, only gasoline. Without the tank, we are having to drive vehicles to the police department to secure the fuel.
“We received an estimate from American Petroleum Incorporated for $88,775.48 for the purchase and complete installation of a double-hulled tank, one of the safest on the market. Shortly after we received the estimate, the tariffs imposed by the President started going into effect. The company called us back and said to add 20 percent to the cost of the estimate.”
Smith said they have now heard from ARDOT that they’ve been approved for both capital expenses. They expect this trolley to arrive in late 2026, the fuel tank, as early as February.
Smith reported that ridership for the On Demand service is currently up, due to utilization by an assisted-living center in the county. Ridership for the Friday and Saturday night service is approximately even with last year, with mostly visitors using the service – “and very few locals.” He said without federal funding “there would be no transit in Eureka Springs.”
Water/wastewater funding questioned
Public infrastructure issues were top of mind, with financial impacts of rising water rates resurfacing, and the imminent costs of maintaining water and sewer infrastructure returning to focus. Alderman Terry McClung brought forth an ordinance intended to repeal the Infrastructure and Improvement (I&I) fee, billed from water and sewer.
McClung is a member of a committee formed by Mayor Butch Berry to look for solutions to better manage wastewater infrastructure problems. As the project comes underway, along with the rate increases to fund it, McClung suggested the I&I fee seemed redundant.
Berry told McClung that he wasn’t so sure, saying the I&I was established as a funding alternative after voters rejected the proposed sales tax, intended to help rebuild the wastewater plant. McClung argued that repealing it would be a “good will gesture,” suggesting it may prompt residents to vote for the sales tax in the next election. Berry pointed out that a sales tax could fall from the pocketbooks of tourists to those of the citizens should another crisis arise, like the COVID pandemic.
City Financial Director Michael Akins explained that the I&I fee brings in $220,000-240,000 per year, and can be used to pay off bonds, but does not suffice in covering the costs of the wastewater plant project.
The elephant is on the sidewalks
Alderman Susane Gruning asked if the infrastructure fee could be used for streets as well. Akins said that under municipal state law, departments’ finances are not allowed to comingle. Akins also said that in the process of proposing another sales tax, another rate study would have to be done. The ordinance to repeal the I&I fund, Ord. 2376, failed to pass by three votes. McClung asked Berry when the next committee meeting would be scheduled, and called for action in meeting, educating the public, and preparing for the next election.
Discussion of infrastructure continued as Gruning brought up sidewalks – what she called, “the elephant in the city.” She pointed out that when the city handed homeowners responsibility of sidewalks more than a decade ago, many were already in poor condition.
Gruning said that people and organizations are buzzing on the topic of sidewalks – how to repair, build the lack thereof, and ensure compliance with safety regulations. She asked council if they felt sidewalks were a priority and if they agreed that a discussion to explore the topic was in order.
Building Inspector Paul Sutherland told council that one hurdle is only having access to six or seven licensed contractors in the city. Issues like this, Sutherland suggested, is why he has put forth efforts to train new contractors in the area.
Berry recommended Gruning contact the mayor’s office for support in drawing up legislative orders that council could vote on. Gruning requested permission to place the discussion on next meeting’s agenda, which Berry and council welcomed.
Public Comments
- Ruth Virginia Seymour returned, addressing a hit-and-run incident involving her and alderman Harry Meyer. Seymour said she will be undergoing surgery to stabilize a neck injury that she says resulted from incident, in which she claims Meyer hit her with his truck and left the scene. Seymour asked for the mayor’s assistance in making Meyer’s insurance information available –she says that info was not exchanged with her or police offers at the time of the incident.
- Former hospital employee Richard Webb wrote an email to be read aloud, saying his wife was suffering from chronic health issues they believe to be caused by the stress of hospital-related turmoil.
- Public Works Director Simon Wiley reported zero water leaks last week, and that his crew had been using their time to replace meters, old pumps. Wiley offered that Public Works could do a better job of staying on top of routine checks of aging equipment. Look out for updates on the Eureka Springs Public Works Facebook Page.
- After some recent heated meetings, Gruning said she’d like to see council be able to put aside their differences, placing emphasis on communication and respect. “Progress will not come if we’re stuck in conflict or complacency,” she said.
- Ordinances vacating Alpena Ave, Lone St., and an unnamed alley (2373, 2374, 2375) passed third and final readings.
- Ordinance #2372, which increases ambulance rates as allowed in Arkansas State Act 867, was approved.
- Reappointments were made for HDC Commissioners Frank Green and Dee Wright.
- Transit employment opportunities including paid training for drivers are available at eurekatrolley.org/jobs.