City officials have said that though year-to-date revenues are down from the same period in 2019, they are faring better than expected in the midst of the coronavirus (COVID-19) pandemic.
El Dorado City Council members recently thanked city department heads for helping to keep expenses down as part of an ongoing spending freeze on non-essential city services.
The freeze was put into effect last March as a precautionary measure, with council members saying then that they did not know how COVID-19 would affect the 2020 city budget.
During a Finance Committee meeting Sept. 10, Council Member Vance Williamson, who chairs the Finance Committee, said that while the numbers through Aug. 31 looked good, the city is not yet out of the woods as the council heads into 2021 budget preparations.
Such concerns were reflected in some 2020 budget line items.
Many local events have been cancelled because of COVID-19 and that means activity has slowed at the El Dorado Municipal Auditorium.
Mayor Veronica Smith-Creer said the majority of the $8,350 in revenue that has been generated by auditorium rental fees this year came in after the facility reopened earlier this summer after having been closed since March because of COVID-19.
“The loser of the day is the auditorium. Their revenue is at 33.4% with expenses at 86.4%,” Williamson said while reviewing a city treasurer’s report.
Williamson noted that the auditorium’s $2,500 repair and maintenance budget has been exceeded by $19,584 due to an unexpected repair to the air conditioning unit.
Council Member Andre Rucks suggested that the city rent the auditorium at a discounted rate to help encourage the use of the facility, which officials have said is spacious enough to allow for social distancing.
Smith-Creer said users have been paying full rental deposits of:
• $400 and $200 to reserve for 501c3 renters.
• $450, $225 to reserve for nonprofits.
• $500, $250 to reserve for for-profits.
The Boomtown Opry restarted its monthly shows in July at the auditorium after shutting down for half of the year because of COVID-19.
In June, the El Dorado Advertising and Promotion Commission said the Opry was one of several local organizations who received A&P funding to help promote shows in 2020 but have had to cancel or postpone events this year.
Commissioners noted an initial jump in the A&P 2020 budget, saying that because of the cancellations, some of the $260,000 that was awarded in funding requests has not been used.
Other groups who received A&P funding this year include Main Street El Dorado, the Murphy Arts District/El Dorado Festivals and Events, Inc., the Mayhaw Festival and The South Arkansas Community College Foundation for the Outdoor Expo, all of which have canceled events because of COVID-19.
The virus has also contributed to a drop in revenue for the A&P commission.
The commission draws its income from a 3% lodging tax and local hotels and motels have experienced a decrease in occupancy for the year.
Council Member Paul Choate, who also serves as treasurer of the A&P commission, said A&P revenues are running at about 53% of 2020 budget projections.
By Aug. 31, the commission had made $196,566 of its projected $391,680 budget and expenditures, which were projected at $410,000, came in at $151,737,according to a financial report that was prepared by City Treasurer Trena Dean.
Choate said he was working with Dean to prepare a financial report to present to the A&P commission.
Williamson said the treasurer’s report showed that the city’s recycling department appears to be over budget at 102.6% for the year but the numbers will change once the city has been reimbursed for a $75,000 grant that was used in 2019 to help relocate drop-off recycling facility to Liberty Street.
“That will cross out at the end of the year. They’re at 63% so that’s really below expenses,” Williamson said.
During an El Dorado Historic District Commission meeting, which was held a few hours prior to the Finance Committee meeting on Sept. 10, Elizabeth Eggleston reported there was $500 left in the commission’s 2020 budget.
Eggleston said the amount is to go toward the executive director’s salary.
She explained that the commission has had to cover additional expenses this year, including a subscription to hold its monthly meetings, via Zoom, the video conferencing app, and to purchase a recorder, noting that public meetings must be recorded to comply with state statute that was passed in 2019.
Auction
In other business, the council authorized the El Dorado Police Department to auction several old police cars. The council’s approval is required by state law.
Police Chief Kenny Hickman said the youngest unit on the auction list belonged to former Chief Ricky Roberts, who retired from the EPD in 2013 and is now Union County Sheriff.
“We really do need to clear up parking space and those have all been … had recommendations from a mechanic that probably the cost effectiveness of them (has) long since been gone,” Hickman said.
He said the auction is scheduled for 9 a.m. Saturday at Davis and Associates Auctioneers, 250 Moorewood Road.