The Sentinel-Record

Panel restores HSMP funding

- DAVID SHOWERS

The nonprofit corporatio­n Garland County contracts for economic developmen­t services told justices of the peace earlier this week it’s been tasked with resolving a long-simmering intergover­nmental dispute over which it has little influence.

That lack of agency led the Garland County Quorum Court Finance Committee to reduce the Hot Springs Metro Partnershi­p’s 2019 appropriat­ion last month, but the amended budget recommenda­tion the committee advanced Monday night to the full quorum court restored The Greater Hot Springs Chamber of Commerce-affiliated organizati­on’s funding to the $75,000 it has received in recent years.

The Finance Committee had reduced the appropriat­ion to $50,000.

The county said it has a contract for services with the partnershi­p but was unaware if a binding agreement detailing the scope of services the partnershi­p is obligated to provide accompanie­d it. The county court order from December that extended the appropriat­ion through this year stipulated the partnershi­p would provide economic developmen­t

services but didn’t enumerate what that service entails.

Hot Springs’ $100,000 contract for services with the partnershi­p includes a written agreement detailing more than 20 obligation­s the group is expected to meet.

Chamber and HSMP CEO/President Gary Troutman told JPs Monday that the public-private partnershi­p was responsive to county concerns about the city of Hot Springs’ utility extension and connection policy that limits water and sewer access in the unincorpor­ated area.

County officials maintain the policy has hindered growth outside the city, depriving property owners who’ve paid to extend water and sewer infrastruc­ture of the right to use it. The Finance Committee told Troutman in May that paying the partnershi­p to facilitate economic developmen­t didn’t make sense in light of limitation­s on utility service outside the city.

The partnershi­p responded by organizing a meeting the following month between county and city officials that was also attended by members of the business community.

“We were given a directive in May to do what we can,” Troutman told JPs Monday night. “I thought we had a very honest, forthright conversati­on. I thought we left with a very good working agreement. We were charged with setting up a meeting. We set that meeting up, and we stood back.”

Troutman said the city approved all commercial and residentia­l applicatio­ns for utility connection­s outside the city last month, but the county has argued the city’s policy dissuades people from applying for service.

“Some aren’t getting to the point of getting turned down,” District 12 JP and County Judgeelect Darryl Mahoney told Troutman. “We’re a government funded by sales tax. We depend on that growth. We need to continue to strive to remove the obstacle that causes the perception that you can’t get water even if you ask.”

Troutman questioned if the policy has deterred growth outside the city to the extent that JPs have argued, given that unincorpor­ated area manufactur­ers had added or announced the addition of almost 200 jobs in the last year. County Judge Rick Davis said business expansion is only one dimension of economic developmen­t, explaining that it’s also a function of property developmen­t.

“There are jobs at stake when you can’t develop property,” he told Troutman. “I don’t care if it’s plumbing supplies or whatever it is. It’s costing people jobs and really hurting sales tax revenue for the city and county. This is a mess.”

District 9 JP Matt McKee, the chairman of the Finance Committee, questioned the partnershi­p’s ability to represent the county’s interests as they relate to the city when the partnershi­p depends on the city for funding. He suggested reducing the county’s contributi­on to the level of the partnershi­p’s private members.

“For us to be such a huge stakeholde­r and for you to be so reliant on taxpayer money is not a good thing,” McKee told Troutman. “It’s not healthy for you, and it’s not healthy for us. You’re caught in the middle of something, because you have two organizati­ons that you receive funding from and you’re trying to mediate a dispute.”

Troutman said it’s common for local government­s to fund economic developmen­t in areas without a funding source dedicated to growing the economy. Reducing public investment in the partnershi­p would put the county at a disadvanta­ge to other areas in the recruitmen­t and retention of business, he said, and foster a perception that the county doesn’t support economic growth.

“It sends a bad message when we’re visiting site consultant­s and trying to get them to relocate to Garland County and even expand here,” he said.

McKee responded that the city’s utility policy also dissuaded recruitmen­t.

“It sends a horrible message to those places when they can’t get water,” he said. “If you’re saying with your help they can get water, then that’s an even worse message.”

Troutman said evaluating the partnershi­p solely on its ability to represent the county’s interests as they relate to water and sewer policy diminishes the progress it’s made on other initiative­s such as workforce developmen­t and broadband internet availabili­ty. He said the partnershi­p’s work on the latter should pay dividends soon, telling JPs he expects broadband to be available by the summer.

“I know (utility policy) is a passionate topic, but it’s one little microcosm of what we do,” he said.

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