The State of the City
EDITOR’S NOTE: City Manager David Frasher presented the 2016 State of the City Report in February. As Frasher completes his first year as city manager, we are presenting the report in its entirety in two parts, concluding today.
Notable accomplishments
(The year) 2016 saw the promotion of two city staff members to the permanent positions of airport director and police chief, following nationwide recruitment efforts.
Glen Barentine, airport director, promptly secured FAA funding for an Airport Master Plan Update that will guide Hot Springs Memorial Field’s long-term development plans. After SeaPort Air ended Essential Air Service (EAS) operations in September, the Department of Transportation selected Southern Airways Express, LLC to provide
Hot Springs with service to DFW. Southern Airways will provide three flights daily beginning in April.
Police Chief Jason Stachey is also off to a great start in leading change at the Hot Springs Police Department. He implemented crime reduction initiatives including “Operation 8 Ball,” a multiagency effort resulting in the arrests of 53 individuals for drug trafficking. This was the largest single arrest event in the history of Garland County. Creating a Special Investigations Section (including a drug unit and full-time nuisance abatement detective), implementing Procedural Justice training, detecting and correcting crime reporting deficiencies and ensuring those statistics were in compliance with state law, adding a bomb detection K-9 unit, converting to 12-hour patrol shifts, phasing in body-worn cameras and increasing community outreach are a few of HSPD’s accomplishments in 2016.
In November, the board approved plans for a comprehensive citywide public safety radio communications system, primarily funded by a twoyear levy of 2.6 mills of ad valorem taxes. The newly-approved Request for Proposals was issued to vendors on February 24, 2017.
In July 2016, the board adopted the Downtown Economic Development and Redevelopment Action Plan, which was followed by adoption of the Parking, Pedestrian and Bicycle Enhancements Plan in November. These strategic plans provide recommended actions that will enhance the economic vitality, function, safety and aesthetic appeal of downtown.
Quality of life
Another key long-range document, the Green Infrastructure Landscape Plan, now provides detailed strategies to protect, restore, expand and connect the city’s natural assets that contribute to the environmental and economic health of the community.
The city of Hot Springs continues to explore quality-of-life amenities that tap into the burgeoning adventure tourism industry. A feasibility study was conducted for the 1700-acre Northwoods property around the Lakeside Water Treatment Plant, an important natural asset with tremendous potential. The study examines the area’s future outdoor adventure recreation potential and recommends ways to ensure its long-term financial viability. Visit Hot Springs is partnering with the International Mountain Biking Association to develop a conceptual plan for a trails master plan that would facilitate mountain biking and local recreation opportunities.
In 2016, the city of Hot Springs continued to make steady progress in creating suitable living environments, promoting affordable housing initiatives, and encouraging job growth through the Community Development Block Grant Program. A total of $265,000 was expended through projects benefiting more than 4,000 low-to moderate-income persons.
Ensuring an adequate potable water supply for the demands of today as well as those of future generations remained a top priority in 2016, as the city continued efforts for water supply allocations from Lake Ouachita and DeGray Lake. These efforts culminated in notification earlier this month of approval of the draft storage agreement for Lake Ouachita. This achievement paves the way for execution of suballocation agreements with other water providers that should help secure adequate water supply for Hot Springs for most of the next century.
The board of directors also adopted an amended water connection policy in October that guarantees service and clarifies the public’s expectations by establishing criteria for connecting to the city’s water system.
Road improvements
In 2016, 25 city streets were paved at a cost of about $550,000, covering approximately four miles. In addition, about $136,000 was allocated to Complete Streets road improvement projects.
The “Pave It Forward” county road tax, approved by voters in 2016, is estimated to yield $7,330,000 for the city, collected over approximately five years. The following potential projects could be partially funded from the city’s portion of the tax:
• Airport Road (Highway 70 west) King Expressway intersection and on-off ramp improvements.
• Weston Road/Albert Pike traffic signal installation.
• Higdon Ferry Road (Highway 88) King Expressway intersection and
on-off ramp improvements
• Belding Road extension to Malvern Road (Highway
270 B).
• Increase city overlay funding.
• Grant matching funds.
Economic indicators
I am excited to share the economic indicators that show the considerable growth achieved throughout 2016. We have been blessed over the past few years in all of the measurable indicators, from steady increases in sales tax revenues and building permits, to the infrastructure development that provides building blocks for the future and sustains and enhances our quality of life.
Place matters more than ever for achieving sustained economic development, and Hot Springs continues to be the preferred place for citizens and visitors alike. The city’s namesake thermal springs, natural beauty and world class recreational offerings make travel and tourism an integral part of the local economy. A 3.47 percent increase over prior year collections for the advertising and promotion tax supports
7,500 jobs within the travel and tourism industry. Visitor spending generated more than
$57 million in tax revenue for state and local governments, making the area the second highest recipient of tourism dollars in Arkansas, and the highest on a per capita basis.
City sales tax collections demonstrated robust growth of 4.29 percent compared to the previous year. The majority of city services are dependent upon a 1.5 percent sales tax which also supports police and fire protection. The local unemployment rate dropped to 4.3 percent from 5.6 percent during the previous year. New business licenses totaled 357, representing a 4 percent increase as well.
Oaklawn Racing and Gaming began its 113th live thoroughbred racing season and continues to be one of the top destinations in the country. Revenue from games of skill showed a 7.8 percent increase, providing $1.8 million in revenue to the city. Oaklawn has stimulated job growth and collected taxes, both directly and indirectly, from the racing and gaming industry.
The building and development sector has also shown steady gains on multiple fronts at the Garland County level, according to the Arkansas Realtor Association. New and existing home sales were flat compared to the previous year; however, the average sale price rose almost 2 percent. Another indication that the new construction market remains on the path to recovery is evidenced by the 45 new residential building permits with a valuation of $14.5 million, and 322 residential remodel permits with a valuation of $4.4 million. Commercial building had 17 new permits with a valuation of just under $7 million, and 236 commercial remodel permits with a valuation of $14.3 million. Some of the larger commercial projects opening in 2016 within the city included the $26 million,
67,000-square-foot National Park Medical Center Heart and Vascular Center and the Wal-Mart Neighborhood Market in Indiandale Shopping Center. In 2016, the Planning & Development Department issued 3,736 permits totaling
$49.5 million in citywide construction activity.
Historic downtown Hot Springs continues its popularity as a vibrant place in which to live, work, and play. In 2016, the area saw almost
$17 million in capital investment, including 25 new business startups. As mentioned, the jewel of downtown is the newly opened Waters Hotel, located in the historic Thompson building. The 62-room boutique hotel is situated in the heart of downtown, directly across from Bathhouse Row. It features The Avenue, a new restaurant with an award-winning young chef.
Hot Springs should be extremely proud of these accomplishments in Hot Springs, and I am optimistic about the outlook for 2017 and beyond. We are committed to working with our business community to ensure that Hot Springs continues to grow and thrive while contributing to the overall strength of the regional and state economy.
In closing
(The year) 2016 was a fastpaced, challenging and highly productive year, punctuated by milestone achievements. In some cases, these achievements were the culmination of years of planning, partnerships, negotiation and innovation. Our loyal city employees, through their daily efforts, make vital contributions to the health, safety and beauty of our city. Their talent and resourcefulness, combined with a dedicated team of department heads and the leadership of our board of directors, help keep Hot Springs moving forward. A vital partner in the city’s continued growth and success is the enthusiasm and engagement of our citizens. Their creative ideas, thoughtful participation and volunteer spirit are the impetus for constructive change and improvement that benefit our city as a whole. You can see this on full display in many of our neighborhood associations and numerous outstanding civic clubs, churches and volunteer organizations throughout the community. Our strength lies in our citizens. Working together, we can continue to develop Hot Springs as the most unique, attractive and progressive city in Arkansas.