Berry gives glowing review in State of the City

Eureka Springs Times-Echo In remarks jam-packed with positives, Eureka Springs Mayor Butch Berry praised the support of residents and the confidence of tourists in his annual “State of the City” address.

The speech, a little more than 28 minutes long, opened the regular city council meeting on M o n d a y, Feb. 12, at The Auditorium.

“ We ’ r e fortunate that we have a lot of good public servants in our departments and commissions within the city who are really dedicated in providing the best services that they can in the best manner possible,” Berry said before beginning a presentation that highlighted accomplishments by both city departments and commissions during 2023.

FINANCES

The city’s finances are an “important barometer of our city health,” Berry said.

Sales tax revenue was $3,271,550 in 2023 — an increase for the eighth time in the past nine years, the mayor reported.

“We came into 2023 with a strong finance standing considering where we just came from with the post-pandemic rebound,” Berry said. “We all kind of held our breath waiting to see what was going to happen with our chief economic driver, which is tourism, and how that would be affected by the pandemic. No one knew what was going to happen.

“… You know, sales tax, which is our largest revenue source for the city, showed the visitors’ confidence in Eureka Springs before and during these economic times.”

Berry compared the sales tax for the past eight years, pointing out what the city collected in 2023 versus the $2,123,085.34 in 2016.

“That’s a dollar difference of over $1,148,000 in sales tax revenue in the city in 2023 over what we collected in 2016,” he said. “In other words, our largest source of revenue increased by one-third, 33 percent, over this eight-year period.

“I think when we first started and saw the pandemic, we really didn’t know how that was going to affect our our industry. I used to always say that our tourism was about 75 percent of our local economy, while 25 percent was other miscellaneous things. But during the pandemic, we saw without a doubt that tourism was, if not 100 percent, at least 95 to 99 percent.”

In city department budgeting, Berry reported that police expenses were 6 percent under projection, fire department expenses were 4 percent over budget, water and sewer were at 6 percent over budget while transit came in 13 percent under what was predicted.

Overall, city departments revenues were 6 percent under budget with overall expenses 8 percent under budget, the mayor said.

“I think we have a special thanks to go to not only our department heads for helping manage that budget, but also our finance director, Michael Akins, for providing the city council and the department heads the timely financial reports allowing everybody to make short-term corrections that are so important to help maintain a balanced budget,” Berry said.

CITY DEPARTMENTS

Warning citations were down 527 and uniform citations were down 80 in 2023, Berry said when going over police department statistics. Arrest were down 56.

Berry went over police department achievements in the past year, which included the installation of ACIC Portal compatible computers in all patrol units. Other accomplishments included the department receiving two new patrol units, mandatory monthly safety briefings, active shooter classes and a“full combat/patrol rife class.”

For the Eureka Springs Fire Department, there were 165 fire and rescue incidents in 2023, Berry said.

“This was an increase of 25 percent over 2022,” the mayor said. “EMS volumes were down by 4 percent in 2022 with a total of 1,604 calls for service.”

Achievements for Eureka Springs Fire & EMS during 2023 included the lowering of the department’s ISO rating, upgrading all mobile and portable radios to be digitally compatible with Carroll County and receiving a new ambulance.

In its first year under the leadership of Simon Wiley, public works completed a citywide leak analysis and installed new meter antennas that allow for “drive-by reading,” Berry said.

“We’ve still got a few training sessions to go, but we’re hoping within the next month that we’ll have this 100 percent operable,” he said.

Berry commended a sidewalk project on Van Buren Avenue, the purchase of three trucks and the recent compliance review showing the needed upgrades at the wastewater plant.

“As you know, the results came back and we’re going to have to do a $6 million increase on that plant,” Berry said. “However, we’re also finding out that it looks like we’re in good shape for receiving funding, at least partially, for that.”

In the city’s transit department, 129,108 rides were given and 39,400 tickets sold with fare revenue being $250,630.49 in 2023, Berry reported, adding there were 7,472 tram riders resulting in fare revenue of $137,513.

“We are fortunate that our transit system is federally funded, and in 2023 received $1.182 million from FTA for operations, administration, capital performance, preventative maintenance reimbursement,” Berry said. “This amount included two buses and two vans ordered in 2020 and received in 2023.

“I’m not sure if most citizens or the council is aware, but we are the only transit agency in the state that is self-supporting with no operation money from the city. All other cities with transit departments depend on cities to help fund their system.”

COMMISSIONS

Berry praised each city commission, going over highlights from 2023.

He reported that the City Advertising and Promotion Commission collected $2,053,575 in 2023, down 1 percent from 2022.

The mayor noted the month-to-month fluctuation in collections and how they compared with revenue the city gets from parking fees.

“One of the barometers we’ve seen may seem incidental, but actually it shed some good data on our visitor behavior,” Berry said. “Passport parking app, which was installed in Eureka in mid-2019 … the dramatic jump from 2020 (20,857) to 2023 (40,553) is indicative of a more frequency of use of the Passport app and an increase in day-trippers.

“… With all that said, and to circle back to something I mentioned earlier, visitors have continued to show their confidence in Eureka Springs before and through these times. We know the composition of tourism in Eureka Springs is always changing and we’re grateful for their continued confidence.”

Berry praised the Parks and Recreation Department and commission on the numerous projects that are ongoing including repairs and improvements to Basin Spring Bark and for working with the CAPC and public works to lead the charge in getting downtown decorated for Christmas.

“I also want to thank the parks staff for the great birthday party you gave for Eureka Springs on the Fourth of July,” Berry said. “Jamboreeka was also a great gathering and I think everybody had a good time and the fireworks were great. We’re looking forward to another one this year.”

Berry thanked the planning commission for the establishment of a tree removal policy and praised the planning and historic district commissions for those who spoke to legislators regarding restrictions on overnight lodging in residential zones. He also gave kudos to Jacob Coburn, who was hired as building code enforcement officer, for establishing guidelines and policies.

Coburn issued and inspected more than 250 jobs, Berry said, “including new homes, historic home renovations, commercial building renovations, tiny homes, additions to the middle school, restoration and remodeling at five hotels, construction and remodeling of five new restaurants and over 100 property and certificate of occupancy inspections.”

The cemetery commission, Berry noted, dedicated a new onsite office in March, and completed many projects, including rehabilitating 500 feet of historic wroughtiron fence paid from a $19,000 grant from the Arkansas Historic Preservation and Restoration.

“I want to call out a special recognition tonight to a group of people who care for a place dear and near to most of our hearts, the beautiful Eureka Springs Cemetery,” Berry said. “The cemetery commission works quietly and behind the scenes and boy, have they been busy.”

LOOKING AHEAD

Berry said plans are still in the works for the roundabout and pedestrian tunnel at the intersection of highways 62 and 23, for repairs to Black Bass Dam and to continue sidewalk extensions on Van Buren Avenue. He also mentioned looking ahead at the conversion of the Eureka Springs Hospital to a Rural Emergency facility.

Berry briefly touched on affordable housing issues in the city, reporting that 50 units were added in 2023.

“We have over 120 long-term rentals now in progress for the city,” he said. “We’re all concerned with the housing situation in Eureka. I’m glad to see this recent progress on long-term units with more being looked at.”

Berry also acknowledged the awards the city received during the year, including three trendsetting city awards and a recognition from TripAdvisor.

“We’re really proud of these three trendsetting city of the year awards,” he said. “We were the only city to receive this many awards.

“We also received an award from TripAdvisor, which bestowed Eureka Springs our very first TripAdvisor Choice Award for Best of the Best Destination. TripAdvisor reaches 463 million travelers each month so the exposure … is pretty far reaching.”

Other noteworthy awards in 2023 included “Best Place to Retire” by Southern Living and “The Most Charming Small Town in Arkansas” by HGTV.

“We appreciate the recognition of how other people look at this place we call home, because we know how special it is,” Berry said.