12-08-98339
Board of Directors Room
City Hall - 500 W. Markham
Little Rock, Arkansas
December 8, 1998 - 4:40 P.M.
The Board of Directors of the City of Little Rock, Arkansas, reconvened from the
December 1, 1998 regular meeting, with Mayor Jim Dailey presiding. City Clerk Robbie
Hancock called the roll with the following Directors present: Directors Hinton, Hodges,
Cazort, Keck, Wyrick, Kumpuris, Kelly and Adcock - total 8; Absent - Directors Wilson
and Joyce - total 2.
With a quorum present, Mayor Dailey declared the Board of Directors in session
and stated the purpose of the reconvened meeting was to consider the 1999 Budget.
(Note: The sale of the Wallace Building at Markham and Main Streets had been
removed from the Agenda)
Consideration was then given to the proposed Budget Ordinance, described as:
AN ORDINANCE PROVIDING FOR AND ADOPTING A BUDGET FOR
THE CITY OF LITTLE ROCK FOR THE PERIOD BEGINNING JANUARY 1,
1999, AND ENDING DECEMBER 31, 1999, APPROPRIATING FUNDS FOR
EACH AND EVERY CLASS OF EXPENDITURE THEREIN PROVIDED; AND
DECLARING AN EMERGENCY.
City Manager Cy Carney made a presentation, explaining the proposed budget had to be
reduced by $1.1 million since that money was not available from the billboard fund. (See
Minutes of December 1, 1998, page 10) Instead of reducing programs, he proposed
increasing revenue resources. (CATA night fare increase, administrative fee for sale of
YMCA building, rent from leases on properties obtained for the Clinton Presidential
Park; acquisition fee paid by the developer of the Mosaic Templars Building, sale of the
old Main Library at 7th and Louisiana, and funds from the sale of Little Rock Municipal
Water Works surplus properties - Maumelle Lake, Jackson Reservoir and Riverdale
lands.) Mr. Carney stated that if the resources yield more than the $1.1 million, he would
like for that money to be pledged toward the anticipated year 2000 deficit. Mayor Dailey
opposed selling any part of the Jackson Reservoir land and Maumelle Lake land.
Director Keck expressed concern about selling assets to fund operations. Director
Hodges said the bottom line is that we have to have a balanced budget. His concern was
that these are one time funds and would not be available for future budgets. Director
Keck suggested giving consideration to putting before the voters the issue of whether
taxes received by Pulaski County should be based on point of collection rather than on
the basis of population. Seven million dollars could be coming to the City rather than
going to the County. Mr. Carney also noted that new for 1998 and 1999 are additional
funds for operating reserve and contingency reserve and these are significant amounts of
money. Following the lengthy discussion, Director Hodges moved to accept the City
Manager's budget modifications with the exception of Maumelle Lake and Jackson
Reservoir lands, plus those made last week (December 1, 1998). The motion was
seconded by Director Cazort. Director Adcock objected to passing the budget ordinance
without hearing from outside agencies and other groups that had an interest in the budget.
Director Kelly pointed out that something is missing in the PIT budget. There is no
increase in the actual amount of FUTURE Little Rock funds going to PIT nor any
additional programs in this years budget. He was particularly concerned about the
growing need for programs and services in southwest Little Rock. He suggested an
increase of $150,000 to address the southwest area of Little Rock. Director Adcock
referred to the $150,000 for Arkansas Baptist in the proposed budget and the $150,000
for 1998, making a total of $300,000 for Arkansas Baptist College for both years. Mr.
Carney said that amount would be held in abeyance until the Arkansas Baptist project is
approved, along with the $200,000 for the Neighborhood Resource Center. Director
Kumpuris felt there were other more urgent needs, and suggested that the $300,000 for
1
340
Minutes - Reconvened Meeting
December 8, 1998
Arkansas Baptist be deleted and used for other purposes. Mayor Dailey was opposed to
that proposal. There was a lengthy discussion regarding the Arkansas Baptist College
funds (to be used as matching funds for a federal grant to build a facility at the college to
serve the community and the college) and certain 9 -1 -1 funds with a number of
suggestions presented. City Attorney Tom Carpenter stated that 9 -1 -1 funds could not be
used for anything other than 9 -1 -1. Also there will need to be a signed agreement for
services with Arkansas Baptist College. Director Kumpuris moved to take $250,000 out
of the Undesignated Fund and put it back into the General Budget, which along
with the funds from the sale of the Riverdale property would balance the budget
and also provide $150,000 for southwest Little Rock PIT programs. The motion was
seconded by Director Cazort. In response to a question by Director Kelly, Director
Kumpuris assured him that we are not ruling out the Arkansas Baptist application, we are
just taking out the $150,000 in this budget - not the original $150,000. A voice vote was
taken on the motion as follows: Ayes - Directors Hodges, Cazort, Wyrick, Kumpuris,
Kelly and Adcock - total 6; Noes - Directors Hinton, Keck, and Mayor Dailey - total 3;
Absent - Directors Wilson and Joyce - total 2. A voice vote was then taken on the
amendment to the budget as follows: Ayes - Directors Hodges, Cazort, Keck, Wyrick,
Kumpuris, Kelly, Adcock, and Mayor Dailey - total 8; Noes - Director Hinton - total l;
Absent - Directors Wilson and Joyce - total 2. Director Keck asked if the City Manager
had found a way to revise the business privilege license to get rid of the convoluted,
confusing and otherwise abusive and obtrusive inventory tax. Mr. Carney said he had not
found a way to substitute revenue generated by the inventory tax, however, the
convoluted nature of the tax is being studied to develop a new formula. The Ordinance,
as amended, was read then read the first time. The motion and second by Directors
Cazort and Hinton, respectively, to suspend the rules to provide for the second reading
failed to receive the required two- thirds vote by the following voice vote: Ayes -
Directors Hinton, Hodges, Cazort, Wyrick, Kumpuris, Kelly, and Adcock - total 7; Noes -
Director Keck and Mayor Dailey - total 2; Absent - Directors Wilson and Joyce - total 2.
Therefore, the Ordinance was left on the calendar for second reading on December
15,1998.
There being no further business to be presented, the reconvened meeting was
adjourned at 6:15 o'clock P.M. with the Board of Directors to meet again in regular
session on Tuesday, December 15, 1998, at 6:00 o'clock P.M.
ATTEST:
t
City Clerk Robbie Hancock
P)
APPROVED:
yor Jim Dailey