By Rick Harvey
RHarvey@CarrollCoNews.com
Eureka Springs Mayor Butch Berry’s voice was full of positivity as he delivered his “State of the City Address” during the Monday, Feb. 13 city council meeting at The Auditorium.
“This is once a year the mayor gets the honor and the privilege of addressing the citizens of Eureka Springs, the city council and our friends and residents of the city of Eureka,” Berry said. “I would thank you for this time for us to reflect back on what happened in the last year, 2022, and this special place, Eureka Springs that we all call home.”
Berry reported on 2022 city finances, sales tax collections and gave updates on city departments and commissions.
FINANCIAL OVERVIEW
Berry said the city came into 2022 “surprisingly strong financially.”
“We had almost 32 percent [surplus] basically in our revenues and we came in given the uncertainty of where our tourism was going to be,” he said. “This was kind of a big shock to us that we would have such a rebound in this post-pandemic area.”
Berry said the city earned $3.2 million in revenue in 2022 compared with $2.9 million in 2021 and $1.9 million in 2020 when COVID-19 began.
“This 32 percent in revenues came basically from our sales tax,” he said. “We do have some from property tax, but the bulk of it is sales tax, which is our largest revenue.
“This kind of shows how much confidence the visitors have in Eureka Springs before and through the economic times …”
Berry said 2022 property sales were down $700,000 compared with “record-setting 2021.”
“But is still posting strong …,” he said. “This is pretty good for Eureka Springs. For years we didn’t have this kind of economy, especially in real estate. So, as you can see once again, people are moving into the area buying properties.”
Berry said while financials are positive, some issues, including labor shortages, housing constraints and inflation continue to be factors.
“There’s no dismissing the pains that exist alongside, and in some case, because of this economic view,” he said.
The mayor said if Senate Bill 197 becomes law it will restrict what the city can do in regard to regulations on short-term lodging.
“Last year we passed an ordinance that would not allow short-term overnight [rentals] in residential zones,” Berry said. “This ordinance now would invalidate that law that we have. In other words, we enacted that law for our residents to have a place to live.”
In other financial recaps, Berry said police department expenses were 10 percent under budget in 2022, fire department expenses were 8 percent under budget and water and sewer expenses 8 percent under budget. The only department that went over budget was transit services at 10 percent over projections.
“These departments represent the majority of the services delivered to the citizens of Eureka Springs,” he said, adding, “Department heads have all done a great job of administering the funds allocated to them and exercising great fiscal responsibility with the taxpayer dollars.
“These are the kind of numbers we like to see.”
OVERVIEW OF DEPARTMENTS
Berry said police department activity in 2022 “has some interesting information,” according to annual statistics.
He said warning citations were up 28 percent over 2021 and uniform citations were down 25 percent.
“Part of the Eureka Springs Police Department goal achieved in 2022 was we continue to build community outreach and participation programs …,” he said.
“We also provided a high level of community service and protection while maintaining your maximum budget efficiency.”
Competitive pay and step increases in salaries have also helped, he said.
“What this means is we don’t have to train our police officers and then they end up going to another city for higher wages,” Berry said.
The Eureka Springs Fire Department responded to 131 fire and rescue calls in 2022, an increase of 18 percent, the mayor reported.
Berry said EMS volume was down 12 percent, with 1,658 calls for service.
“Those combined reflect an overall decrease of 10 percent, or 1,789 calls for service from the Eureka Springs Fire Department,” he said. “However, I want to add that 2021 was an abnormality for very high fire department volume. 2022 results were more normal.”
Berry said goals achieved by the fire department in 2022 included 1,700 hours of training, hosting an emergency medical responder training, instituting a new volunteer program and replacing a 47-year old fire engine with a newer engine.
In public works, Berry said goals achieved included completing the new public works building and updating department computers and networks.
“We’re now using GIS software which is beginning to build new and more accurate water and wastewater maps,” he said. “We’re also including this software with planning and police, so we have a better activity and better understanding of where more of our maps are and what conditions are.”
Berry discussed current projects such as the King Street retaining wall project and the recent purchase of a Ford F-550 truck with plow, spreader and nine-foot dump bed, which came in handy for the recent winter weather.
Three projects from he Arkansas Department of Transportation were also approved in 2022, including the overlay of numerous streets in the city, a grant to install a sidewalk on West Van Buren toward the community center.
“And then, of course, a roundabout on Highway 23 and 62 is under design construction,” Berry said.
The mayor said the transit department saw a 7 percent increase in ridership over 2021.
“Transit drove 161,914 miles getting people there,” he said.
In reviewing the city’s commissions, Berry went over the City Advertising and Promotion Commission’s record tourism tax collections of $2,081,000 in 2022, an 11 percent increase “over a very strong 2021.”
Berry complimented the St. Petersburg, Fla.,-based Paradise marketing and advertising agency and said it was “central” to the CAPC marketing success.
“Paradise understands the pandemic economy as it related to tourism specifically and have provided sound direction through the past 36 months,” he said.
The mayor said the city’s parks and recreation department had “a very productive 2022 year.”
He noted the department addressed “much-needed” springs and garden repairs as well as conducting evaluations and a professional assessment of work that needs to be done at Basin Park and at the Lake Leatherwood dam.
Additional 2022 accomplishments by parks included the restoration at restorations at various springs, road repairs, updated trails, glade restorations, interpretive signage and improved hiking and trail bridges.
Berry said the planning and historic district commissions also had positive years, noting the recent approval of a downtown residential parking district along a portion of Spring Street and the publication of new historic district guidelines which was recently honored by Preserve Arkansas.
“The historic commission also held 22 meeting and hosted guideline revision workshops with the community,” he said.
Berry also noted other significant projects by the city, including the municipal solar project.
“Taxpayers are now reaping the saving of benefits from this project,” he said.
The mayor also mentioned completed renovations to the basement of The Auditorium, the work to help find funds needed to repair Black Bass Dam and the Community Development Corporation of Eureka Springs, which was established to help address affordable workforce housing.
Awards received by the city in 2022 included a Trendsetters Award for Diversity and Inclusion and for “tourism development creative culture.”
“We’re really proud of these two Trendsetter awards, specifically for topics near and dear to us,” he said.