City revenues up, but not as much as hoped as collections fluctuate

EL DORADO — City revenues are performing well so far this year, but not as well as hoped, Mayor Frank Hash reported Thursday.

As the El Dorado City Council reviewed revenues for the first four months of the year and compared them to the same period for the past two years, Hash advised the Finance Committee to “be prepared for a shakedown in June.”

City officials have been keeping a sharp eye on 2017 revenues, having made several budget cuts to deal with a $1 million shortfall in this year’s general fund.

Hash and the Finance Committee are using 2015 numbers for comparison purposes, since 2016 revenues were down sharply.

On Thursday, the mayor said the 2017 numbers are faring a tad better than those of 2015.

“We’re not doing all that swell. We’re not doing too terribly bad, but we’re not doing swell, either,” Hash said.

Through April, the city took $1.8 million in total revenue, compared to $1.71 million in 2015 and $1.76 last year.

Month-to-month collections fluctuated in some measure.

For instance, the one-cent general sales tax took in $291,305 in January, $369,291 in February, $268,800 in March, and $277,614 in April.

Collections for the tax were $296,641, $339,834, $274,571, and $294,374 for the corresponding months in 2015.

The one-fourth cent city sales tax is performing better, with collections coming in at $108,162 in January, $147,392 in February, $95,859 in March, and $100,344 in April.

For the same months in 2015, the numbers were $103,444, $122,094, $93,583, and $109,429, respectively.

“This year is not doing as well as 2015, which is one of our better years, but you’ve acted prudently, and we’re staying out of the red,” Hash said.

Alderman Willie McGhee noted that the Murphy Arts District is expected to open on Sept. 28.

The new arts and entertainment district is under construction in Downtown El Dorado in the area of Jefferson, Cedar, Locust and Hill.

El Dorado Festivals and Events, Inc., is steering the $80 – $100 million project, which includes the repurposing of several properties into a hub of entertainment venues, an art gallery, restaurant, and children’s playscape.

The grand opening will coincide with the 30th anniversary

of MusicFest, the flagship fundraiser of Main Street El Dorado.

One of the goals of the new district will be to provide year-round entertainment and draw visitors to town.

McGhee suggested Thursday that the city may see a revenue bump with out-of-town visitors for the grand opening and subsequent events.

With the multiday event set for late September, Hash said the city will be heading into the last quarter of the year for tax collections.

In other business, aldermen reviewed the quarterly financials for the El Dorado Conference Center.

The facility is owned by the city and managed and operated by South Arkansas Community College, who submitted the financial report to the city.

When Hash said the report “looks good,” Alderman Judy Ward challenged the statement, pointing out that expenditures ($181,898) exceeded revenues ($104,268) by $77,629.

“The school is relatively pleased with what it’s looking like down there, and I’m happy with them as well,” Hash said.

He referred to an operation and maintenance agreement that calls for the city and college to evenly split an overage of $300,000 or more for routine maintenance and operations for the year.

“We did not have to underwrite the conference center last year,” Hash said.