City continues to monitor revenue

If sales tax revenue trends continue as they have so far this year, the city will have to maintain 2017 budget levels that were adjusted to deal with a $1 million revenue shortfall, members if the El Dorado City Council Finance Committee have said.

The finance committee and city department heads met earlier this week, maintaining a monthly meeting schedule they set late last year to keep a close watch on city revenues for 2017.

A review of how city sales tax collections had performed through the first few days of August showed that the onecent sales tax was down 2.05 percent; the quarter-cent sales tax was up 7.03 percent, the onecent, Union Countywide solid waste tax — which is split between the city and county — was down 1.6 percent; and the El Dorado Works economic development sales tax was up 2.9 percent.

The finance committee is using 2015 numbers for comparison since sales tax collections were down in 2016.

From the outset of city budget preparations last fall, city council members grappled with an anticipated $1 million revenue shortfall in 2017.

The drop was attributed to an overall sluggish economy and the completion of several large industry expansion and maintenance projects that had brought hundreds of construction workers into the area for extended stays.

Consequently, the finance committee asked city department heads to trim their 2017 budgets to the bare bone, without cutting city jobs or services.

With the exception of a few budget adjustments — including a new rear-loading garbage truck and a new police patrol unit —, capital purchases have also been mostly suspended for the year.

As city officials edge closer to the start of 2018 budget talks, finance committee members are continuing to exercise caution.

“If we stay on par with

what we’re doing right now, we’re going to have to maintain the budget we have this year, with the decreases in the police, fire and public works departments,” Alderwoman Dianne Hammond said.

Like others in the community, the city is looking forward to the opening of the Murphy Arts District.

The grand opening celebration of the district is set for Sept. 27 — Oct. 1 with a musical lineup that will feature a diverse mix of popular artists, including Smokey Robinson, ZZ Top, Ludacris, Brad Paisley, Lyle Lovett and more.

The goal of MAD is to schedule a variety of entertainment events year-round in El Dorado and create a new local industry that is based on arts and entertainment production.

City officials are hoping the $100 million MAD plan will result in more sales revenue for the city.

The tax collections have already begun.

Tickets went on sale

this week for the MAD grand opening, and the city’s 9.75 percent combined sales tax rate is being applied to ticket sales.

The rate includes sales rates for Union County and the state of Arkansas, 2 percent and 6.5 percent, respectively.

By late Tuesday afternoon, 3,450 tickets had been sold, totaling $9,000 in sales taxes paid, reported Pamela Griffin reported, treasurer and chief financial officer for MAD.

New police car

In other business, the finance committee approved a request for the purchase of a new patrol unit for the El Dorado Police Department.

The unit will replace one that was totaled in a wreck.

It was the second such approval by the finance committee within a month.

In July, the committee and city council approved $17,118.15 for the partial cost of a unit that was totaled after it was struck by another vehicle that reportedly ran a stop sign.

Police Chief Billy White said then that the

other driver’s automobile insurance would cover the $11,000 value of the 3-year-old unit.

Last week, another patrol unit was totaled when an officer slammed into a tree after he swerved to avoid striking a dog that had run into the path of the vehicle.

The officer was traveling east on Mount Holly Road, just outside city limits, and was heading into town for a work-related function, White said.

The officer was not injured in the accident.

White said the vehicle that was wrecked was an older Ford Crown Victoria “with a lot of miles on it,” and a 2018 Ford Interceptor will replace it.

White said rough estimates include $28,000 for the car and $7,000 to install equipment, noting that the equipment on Crown Victoria, which no longer makes police patrol units, will not transfer to the Interceptor.

Late last year, White submitted a wish list for

five new patrol units, telling finance committee members that the police department needed four units.

Months later, after city budget cuts were employed, White said two new units would meet the department’s immediate needs.

The finance committee and city council approved the purchase of a new unit at $32,000 in June, agreeing to revisit the purchase of another in two or three months.

Since then, city officials have agreed to replace the two patrol units that were destroyed in accidents.

White said he will compile firmer numbers for the cost to replace the unit that was totaled last week, and the request will have to pass through the finance committee and the full city council for consideration.