El Dorado Works sales tax revenue increases

EL DORADO — Revenue for the one-cent, El Dorado Works sales tax rose nearly 2 percent at the start of 2017, members of the board who administers the tax heard last week.

Alan Gober, outgoing treasurer of the El Dorado Works Board, reported that January tax collections came in at 1.96 percent ($431,400) above January 2016 ($423,100) collections, representing an increase of nearly $8,300.

Gober said the revenue came from state turnback funds, the city’s cut local sales tax collections that were remitted to the state.

So, these are November numbers,” Gober said, referring to the typical two- to three-month lag between the time sales taxes are collected and submitted to the state and the remittance of turnback funds to the city.

Board members said a portion of the sales from the holiday shopping season is included in the January numbers, and by March, they will be able to see how the remainder of the season will affect tax revenues.

City officials are intently following revenue trends in light of an anticipated $1 million income shortfall in the city’s general fund, which is maintained separately from the El Dorado Works’ account.

The one-cent sales tax is geared toward projects that drive economic development. The tax was approved by El Dorado voters in June 2015 and went into effect four months later.

It is a temporary tax that is projected to collect $50 million — a conservative estimate, proponents have said — over its 10-year life.

The El Dorado City Council Finance Committee has agreed to meet each month and keep close track of quarterly revenue trends for the city this year.

Gober provided the brief financial report shortly after noting that plans for the opening of a new business in Mellor Park Mall will contribute to local sales tax revenues.

Hobby Lobby is expected to come to El Dorado soon.

Elizabeth Eggleston, manager of Mellor Park Mall, later explained that the arts and crafts store will occupy 55,000 square feet, taking up the existing Dollar Tree and former Big Lots spaces on the north end of the mall.

Eggleston said Dollar Tree will relocate to the space that is adjacent to Shoe Show and Maria’s Hair Stop.

The space formerly housed West Coast Video, which recently announced that it is going out of business at its 1001 N. College location.

During the El Dorado Works Board meeting last week, the group voted on a funding request to cover the cost of replacing two fire hydrants at Mellor Park Mall to accommodate the opening of Hobby Lobby and relocation of Dollar Tree.

Mayor Frank Hash said the hydrants will cost approximately $4,200 apiece.

He said the hydrants were knocked down after having been struck by vehicles, and they were later removed from the property by an unknown person(s).

After a robust discussion about ownership and responsibility for the hydrants, the EWB agreed to cover the cost of installation with the assurance that the city will address the matter in the near future.

Hash said mall owner, the Illinois-based Multi-State Holdings, Inc., said the hydrants are part of the water infrastructure for the mall, and the El Dorado Water Utilities cited its longstanding policy of not accepting responsibility for fire hydrants that were installed by someone else on private property.

The mayor said that while the matter is “murky,” he suggested that he city purchase the hydrants to start a clean slate insight of Multi-State’s efforts to land Hobby Lobby and make improvements to the interior and exterior of the mall.

Hash also pointed to the community’s long-held desire for the mall to be refurbished and the expansion of local retail options.

In other business, the EWB postponed consideration of candidates to fill the seat that is to be vacated by Gober.

EWB vice-chairman Greg Downum said he and chairman Robert Reynolds are on the committee to make a recommendation to the full board.

Gober’s term expired in January, but he agreed to continue attending meetings and performing the treasurer’s services until a new member is appointed and a treasurer elected.

Downum asked that the nomination process be deferred until the regular meeting in March. Board members said Reynolds was out of town due to a family emergency.

One candidate, Robert Henderson, attended the EWB meeting.

Once the EWB selects a candidate, the group will then make a recommendation to Hash for appointment.

The mayor presents the recommendation to the city council for approval.

Anyone who is interested in serving on board may request an application by calling City Clerk Heather McVay at 870-881-4877.

Tia Lyons may be contacted at 870-862-6611 or by email at tlyons@ eldoradonews.com.

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