By Nicky Boyette Eureka Springs City Council began and ended the year concerned about the city’s budget and looking for ways to chart a more positive financial direction for the city. At a Jan. 4 workshop, Mayor Butch Berry introduced the idea of a one percent tax with a ten-year sunset to provide funds for fixing aging water and sewer lines plus provide a revenue stream for the Auditorium.
At the Jan. 25 meeting, Steve Beacham, chair of the Planning Commission, represented two ordinances regarding Home Occupations he had championed through from concept to ordinance. Council approved the third readings of both at the Feb. 22 meeting.
On March 14, council first heard murmurs of discontent in the world of Bed & Breakfasts. Alderman David Mitchell insisted some B&B operators were sidestepping the law because there was not adequate Code enforcement. Berry said city hall checks to see who is licensed for a B&B, who advertises for overnight rentals and if the owners are operating within the law. If they are not, the city sends them letters. Berry said letters went out.
Also in March, Beacham reported his commission was set to explore finding a way to fit food trucks into City Code. Council held a workshop on March 11, and while no one spoke against food trucks, how to get them in compliance with Code sparked a heated discourse. The ultimate decision was to authorize Berry to name a committee of three to sort through the details and report back to council with a recommendation.
Council convened early for a budget workshop before the March 28 meeting. They would continue to meet early to discuss the budget at least once a month for the rest of the year. Finance Director Lonnie Clark pointed out city reserves continue to diminish because the city must subsidize water and sewer operations.
At the April 11 meeting, Berry introduced his plan for a two percent retail tax. Revenue from the tax would go specifically toward repair and maintenance of the water and sewer systems, and to repair and operate the Auditorium. Accomplishing these two goals would allow the city to begin replenishing its reserves. Again, he recommended a ten-year sunset on the tax.
Also in April, council voted to approve Resolution #678, which established Eureka Springs as the first city in Arkansas which “accepts the designation and commits to the standards of Bee City USA.”
On April 25, Berry announced he had imposed a spending freeze on all non-operational essential expenditures.
Tumult regarding B&Bs surfaced again. Several folks spoke in opposition to the application by Gary Toub and Kathy Martone for a one-bedroom B&B at 23 Elk. The Planning Commission had voted down their application, but opponents wanted to pre-empt an appeal to council by Toub and Martone.
Toub and Martone did appeal at the May 9 meeting, and the application was sent back to Planning.
At the June 13 meeting, Toub and Martone were back with their appeal because Planning again voted to deny their application. Aldermen pointed out that several biased factors swayed the original denial, and council approved the application 5-0.
Berry presented recommendations from the Food Truck Committee and commented the next step would be to prepare an ordinance, but instead a workshop was scheduled. During the meeting, Berry announced alderman Joyce Zeller had died unexpectedly.
At the June 27 meeting, council imposed a six-month moratorium on issuing new licenses for Bed & Breakfasts in all residential zones in the city. The decision was prompted by confusion caused by what Planning commissioners and aldermen had both called language in City Code vague.
Council approved Resolution 685 authorizing Interim Fire Chief Nick Samac to submit a grant request to the Arkansas Rural Economic Development Commission for securing $50,000 in state funds to purchase additional breathing devices.
Berry announced the lowest bid for the new Public Works building came in at $360,000, far more than council had budgeted. He said he would consider a new strategy.
During the July 5 workshop, Berry announced he had revised his retail tax proposal from two percent to one percent. Upgrades and repairs for the water and sewer systems would get 75 percent of the tax revenue and 25 percent would go for upkeep, repair and operation of the Auditorium.
To fill the vacancy at the table, council seated Kristi Kendrick at the July 25 meeting.
At the August 8 meeting, council approved the third readings of the two ordinances that put Berry’s proposed one percent retail tax on the November ballot.
Solar advocate Jerry Landrum explained how the city could set up an array of solar collectors on a clear hillside location and feed the electricity back into the grid, and this strategy would effectively pay for the power used at the water treatment plant. Alderman Terry McClung urged Berry’s office to look into it and report back to council.
Berry said he had chosen interim Nick Samac to be permanent Fire Chief.
At a workshop on food trucks on August 8, rancor and squabbling prevailed although everyone was in favor of having food trucks in town. Berry said he would have the ordinance prepared.
Craig Hull of the Osage Group had completed a Hazard Mitigation study for the city, and one of the priority hazards was the aging tunnel under the Auditorium and buildings north of it. Hull’s suggestion was for citizens to create an Improvement District. Affected landowners would agree on an equitable tax to pay for the repair. August 10 was the date when some of the affected landowners met with Hull and Alan King of Improvement Districts, Inc., but sentiment was against another tax, particularly since there were so few affected landowners.
On August 22, Parks Director Justin Huss mentioned even though Parks has a No Smoking policy for Basin Park and Harmon Park, there was no ordinance to back it up. He also mentioned policing a smoking ban at Lake Leatherwood City Park would be impractical.
At the Sept. 12 meeting, Kendrick introduced a plan to streamline the vacation process to ensure the city does not lose money. Also Mitchell said he was concerned that public opinion was souring on the proposed tax because part of the revenue would go to the Auditorium and citizens were convinced funds would somehow go to the CAPC. Mitchell therefore challenged the CAPC to clarify its goal toward the Auditorium over the next ten years.
An Oct. 17 workshop focused on Kendrick’s idea for changing the city’s vacation process. She committed to preparing a draft of two ordinances simplifying the process.
The food truck workshop on October 24 again got spicy. Schneider was certain the city would be sued for discrimination because the proposed ordinance required food trucks to operate at least 100 feet from a bricks-and-mortar restaurant. Berry said a revised ordinance would be ready for the next council meeting.
In the Nov. 8 election, voters rejected Berry’s one percent retail tax and elected Peg Adamson to a seat at the council table over incumbent James DeVito.
The ordinance regulating food trucks and trailers made its first appearance at the Nov. 14 meeting. The same arguments resurfaced, but council approved the first reading 4-1, and the second reading with the same 4-1 vote on Nov. 28.
In a budget workshop before the Dec. 12 regular meeting, Transit Director Ken Smith said he had been awarded a federal grant for the purchase of bike racks. A requirement of the grant was a match of $48,300, and Smith said he would not ask the city to pay that amount. He said Transit would cover it.
As the year waned and the one percent tax idea was settled, Berry mentioned trying for a tax one more time, maybe three-fourths of a cent and focusing on revenue only for the repair and upgrade of the water and sewer systems. He also brought up the inevitability of raising water and sewer rates, and aldermen embraced the idea as well.
Also at the Dec. 12 meeting, council approved the third reading of the food truck ordinance by a 5-1 vote.