Siloam Springs' Board of Directors held its second of three planned budget workshops on Tuesday, just before a regularly scheduled meeting.
The workshop was the first of two department-by-department walk-throughs of the proposed city budget for 2017. Tuesday's session covered Administration, Police, and Fire Department budgets. Questions from board members highlighted a few aspects of the budget.
The city's property tax expenses are down from last year because city staff has designated more city-owned land for a city purpose, said Finance Director Christina Petriches. In 2016, the city paid $70,268 in property taxes; that figure is projected to decrease to $10,500 in 2017.
Another area that received attention was the Fire Department, which had a "bad debt" line item listed at just over half a million dollars. Director Bob Coleman asked what the debt was from, and Petriches said it came from EMS patients who cannot pay for ambulance services.
Director Brad Burns said he has long been a proponent of cutting Gentry out of Siloam Springs' coverage area. Siloam Springs does not charge as much money to Gentry as it costs to provide the service, and City Administrator Phillip Patterson said city staff will work toward finding the true cost so the city can ease the rates charged to Gentry to the level at which Siloam Springs will no longer be losing money on the service.
The third, and possibly final, budget review workshop will be on Nov. 1.
When the budget workshop concluded, the board met for its regular meeting directly afterward.
The first order of business was for the city to approve a project that will install Precision Approach Path Indicator (PAPI) lights at the Siloam Springs Municipal Airport, which has been without any visual aid lights since early 2016. The full cost of the project will be $120,000. The city obtained a grant from the Arkansas Department of Aeronautics, which will reduce the cost for the city to $22,000.
Originally, the project was supposed to cover both the PAPI lights and another set of indicator lights, but due to the limited funds available for grant money, the project was downsized to just the PAPIs. When the city received the lone bid for the project, it was $32,000 over the amount allowed under the grant. The city renegotiated the price and re-used some parts of the existing system to lower the cost.
Director Amy Smith asked why there was only one bid for the project, and Community Services Director Don Clark said it was because smaller companies will not touch projects that are subject to FAA regulations. The contract was approved by a vote of 6-0, with Director Steve Beers absent.
After the meeting had concluded, Clark gave a presentation on a new monument sign that is designed to welcome people into Siloam Springs. The sign is planned for the greenspace at Main Street and U.S. Highway 412. In addition, the fountains at the nearby pond are to be enhanced as part of the project.
The board also:
• approved and adopted a pair of rezoning applications; one for First Christian Church to be rezoned to G-I, which is the appropriate zoning for churches and institutions, and one for the 3300 block of U.S. Highway 412, which was rezoned from R-4 to C-2 for a shopping plaza.
• approved an agreement with the Arkansas Municipal League for a defense agreement. The city has been under this defense agreement, but a rate increase made this the first year that the price was more than the city administrator is allowed to spend without board authority.
• accepted a land donation from Roy D. and Rebecca F. James at the corner of University and Hill Street. Smith expressed her gratitude for the landowners' generosity.
General News on 10/23/2016