City Council to review pair of funding requests
The El Dorado City Council is expected to hear at least two funding requests from the El Dorado Works tax during a regular meeting at 5:30 p.m. today in the Council Chamber of City Hall.
Under new business on the agenda are recommendations from the El Dorado Works Board, who administers the city’s one-cent sales tax of the same name.
The 10-year, sales-and-use tax was approved by El Dorado voters in 2015 and is geared toward economic development, infrastructure improvements and quality-of-life projects.
EWB members are expected to revisit a $2.5 million funding request from the Murphy Arts District for:
• The remaining balance of the 12% allotment from the El Dorado Works tax to sell Oil Derrick Park to the city for $890,000. Oil Derrick Park sits on the grounds of The Griffin Restaurant and First Financial Music Hall and features a large oil derrick.
• A contract for services with the city to manage, operate and maintain the MAD Playscape. MAD is seeking a three-year contract for $1.2 million, or $400,000 per year.
• Reimbursement for monopoly infrastructure expenses of $422,341 that went toward
upgrading city-owned infrastructure in and around MAD.
The three- pronged request was initially presented in late October.
MAD officials said then that Murphy USA had agreed to kick in 100% matching funds once the matter has received the stamp of approval from the EWB and the city council, who makes the final decision on how El Dorado Works tax funds are expended.
Extensive discussions about the matter followed, with EWB members asking for additional information, including an updated appraisal of Oil Derrick Park.
There were also questions about annual revenue and expenditures regarding the operation of the playscape and a breakdown of work and costs for the infrastructure upgrades.
Board members and city officials also said they had to make sure such an agreement was in compliance with state law and how to structure the arrangement. City officials reached out to the Arkansas Municipal League on the matter.
On Nov. 5, the EWB approved the MAD package with a stipulation that the $1.2 million contract for services for the O&M of the playscape be spread over three years with payments made in quarterly installments and in arrears.
The motion, which was made by EWB member Avo Vartenian, called for City Attorney Henry Kinslow to draw up a contract spelling out the legalities of such an arrangement.
The EWB is also expected to present today a funding request for another contract for services between the city and the El Dorado-Union County Chamber of Commerce.
On Tuesday, the chamber requested an increase in its annual contract to provide economic development services for the city.
For the past three years, the city has approved a $45,000 annual contract.
With the coronavirus pandemic having slowed activity for much of the year, including fundraising efforts, Bill Luther, president and chief executive officer of the chamber, said the chamber has fallen short of its revenue projections.
Luther also said staff members have dedicated more time to serving the city’s economic development interests this year.
The chamber requested an additional $10,000 for the 2021 contract to help offset some of the income shortage and to cover additional work that has been done this year on behalf of the contract with the city.
After considerable discussion, EWB members agreed to fund half of the $10,000 increase on the condition that the chamber return with an assessment report mid-2021 and the potential for the EWB to approve the other $5,000.
The council is also expected to discuss the proposed 2021 city budget. Over the past several weeks, the Finance Committee has held meetings with each of the city departments to prepare the budget for next year.
Robert Edmonds, director of public works, is on the agenda to present a proposed contract for a project manager to oversee a major project to rebuild the city’s two wastewater treatment plants, both of which were built in the 1970s.