While discussing the importance of educating the community on the value of having a tourism tax in the city, members of the Holiday Island City Council recently voiced concerns regarding the possibility of Eureka Springs losing the same tax.

At its regular meeting on Sept. 17, the Holiday Island council got an update on the newly formed advertising and promotion commission and efforts to educate the community on a proposal that, if approved, will add a tourism tax on lodging businesses, including short-term rentals. Monies collected from the tax, which will primarily be paid by tourists, will then be used for advertising and promotion efforts by the city.

The tax will be on the ballot in November’s general election.

“I haven’t sat in on many of the A&P commission meetings, but they’re putting in a lot of time and a lot of effort and a lot of work into this,” Holiday Island Mayor Dan Kees said at the council meeting. “So, we need to hype as much as we legally can, as being elected officials. We need to push for this tax that’s going to be good for Holiday Island. But, it’s a tax so it’s going to take a lot of convincing.”

Wesley Stille, the city’s recorder- treasurer, said he’s been eyeing budget numbers and is concerned that a ballot proposal in Eureka Springs to repeal its tourism tax and abolish its city advertising and promotion commission would hurt Holiday Island financially.

“Eureka Springs is going to be voting on repealing its A&P tax and Eureka is very concerned about what that is going to mean in Eureka Springs,” Stille said. “Their economy is based on tourism and if people don’t come or if they don’t have that tax they will be out all of that revenue.

“That could affect Carroll County and Holiday Island because we’re collecting county sales tax and they are, too.

“If those [tourists] aren’t coming anymore it’s going to affect our revenue.”

Kees referenced a recent editorial in the Northwest Arkansas Democrat-Gazette in voicing his opposition to Eureka Springs’ CAPC being abolished.

“There was an a editorial comment … by one of the editorial writers from their staff about how, and these are my words, not the newspaper’s words, kind of how shortsighted it was to have a ballot initiative to eliminate a tax, with the anticipation of them passing a different tax that would go towards infrastructure, but without proposing an alternate tax on the same ballot initiative,” Kees said. “It’s like you’re shooting your goose that lays the golden egg before you have another goose in the pen. They just thought it was a little short-sighted.”

Holiday Island council member Linda Graves pointed out that it only took 148 approved signatures to get the initiative on the ballot in Eureka Springs.

“That’s a really small number considering the budget they’re [wanting to eliminate],” Graves said. “… 148 people can destroy Eureka Springs.

Kees responded: “Well, we wish Eureka Springs the best because we think the A&P tax is good for them, and it’s good for us.”

HIGHWAY 23 ISSUES

A section of Highway 23 continues to be dangerous and needs to be looked at by state officials, council members discussed with interim fire chief Gary Martin.

“There’s been several incidents out there on 23 …,” council member Lynn Dumas said of an approximately 200-yard area including an “S” curve in the road. “Just this past week, three or four.”

Martin interjected: “four.”

“Is there a point where the city or [Holiday Island Suburban Improvement District] can start billing the department of transportation for having a road surface that is so dangerous?” Dumas asked.

Martin said the section that is most dangerous is outside the city limits but his department frequently works accidents.

“I know it’s outside the city and I want to address it with [the office of emergency management] and the sheriff’s office and petition the state to do something about it,” Martin said. “Resurface it or something because I’ve had firefighters complain that when it’s raining it gets so slick they can’t stand up on it.”

Council members heard opinions that the last time the road was resurfaced, too much oil was used. When there are heavy rains, the oil rises to street level but is quickly washed away, they were told. When there is mist or light rain, the oil rises and stays on the surfaces, making it very slick, council members discussed.

“I think ARDOT needs to be brought into it…,” Kees said.

BUDGET NOTES

Holiday Island’s sales tax revenue was $24,000 in August, Stille reported to council members.

“August is 67 percent through the year and sales tax is the largest item of revenue in the general fund and we’re at 66 percent of the budget for that,” Stille said.

Building permits are at 208 percent of the budget for the year, Stille reported.

“So,we’ve already almost doubled the budget