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City & Town: February 2005

More than 900 participants attend first Winter Conference
City officials and legislators mingled, the Clinton Presidential Center received Conference guests and the newly elected heard "Words of Wisdom."
By John K. Woodruff, League staff

LITTLE ROCK-Newly elected and experienced city officials and state legislators mingled and discussed mutual concerns at the Arkansas Municipal League's first Winter Conference, timed Jan. 12-14 to coincide with the same week as the opening of the 85th General Assembly. Special sessions assisted the new officials who had just been sworn into office with the new year and were fresh out of the November general elections. Sessions, too, were held to tap the knowledge and presence of the legislators, who convened Jan. 10. The opening night reception and banquet provided opportunities for city officials to discuss the municipalities' legislative agenda with their legislators. The items that caught most of the media attention were improvements that cities said are needed in the state Freedom of Information Act (FOIA). Reporters and cameras covered the opening general sessions Jan. 13 and Fort Smith City Director and Vice Mayor Gary Campbell's prospective FOIA modifications. None of the changes are firm as discussions continue among municipal and county officials, legislators and media representatives. Campbell expressed the hope that cities and the media could agree on changes to take to the legislature. The 1967 FOIA has been amended 22 times. "None significantly weakened the act," Campbell said. Suggested changes would: 1) Temporarily protect information provided to a city by companies that are considering moving to the city; 2) Keep private documents that normally are private as part of an attorney-client privilege, but under the FOIA can be made public, causing a chilling effect on government deliberations; 3) Allow executive sessions to discuss litigation and the purchase, sale or lease of property; 4) Allow keeping private documents that disclose the price that the municipality seeks when it sells or buys property; 5) Define how many members of a governmental entity, as a city council or quorum court, it takes to constitute a public meeting. Campbell became the point person on the FOIA changes after the city of Fort Smith was found by a state Supreme Court order Nov. 4, 2004, that the city had violated the FOIA when the city administrator polled city directors by telephone on a price that the city would bid at public auction for property for a truck route right of way. Campbell said by keeping the city's agreed on price bid secret before the bidding, the city saved its taxpayers $700,000 in the purchase. The city did not publicly disclose the bid that it would offer prior to the auction, preventing other bidders from being apprised of the city's bid. While Campbell went over the potential changes, he added, "I caution you: Do not discuss this with your elected colleagues unless you are in a public meeting." Until the legislature or other rule-making body clarifies what constitutes a public meeting, the League is cautioning city officials to refrain from discussing what may be voted on at a council meeting unless the officials are in a public meeting. Some sentiment was addressed to the changes later during a question and answer session. Sen. Dave Bisbee said the FOIA does need amending when the public interest is not served. Bisbee cited that when a lawsuit is filed against a municipality, the opposing side can use the FOIA to obtain otherwise private working papers of a city's lawyers. Language needs to be couched to protect the public's interest and ensure that all final decisions are made in public, he said.

Cities can promote health and fitness Gov. Mike Huckabee, speaking at the Jan. 13 luncheon, promoted his three "H's" for legislative changes: health, highways and higher education. Continued Medicaid cost increases is "unsustainable," he said. Huckabee said his own work promoting fitness, as his own, was "the most rewarding experience I've ever had." He has lost over 100 pounds. He called for municipalities to build more walking trails, becoming "health friendly," to encourage personal activity, and he commended Little Rock and North Little Rock Mayors Jim Dailey and Pat Hays for their leadership in building the river trail along both sides of the Arkansas River where he sees walkers and runners regularly exercising. Parks and recreation grants can be a "partner" in building the walking trails, he said. On highways, Huckabee said, "we are not touching that turnback formula"-in reference to the 70-15-15 split of turnback with 70 percent going to the state, 15 percent for municipalities and 15 percent to counties. As for higher education, Huckabee said high school diplomas are no longer adequate for today's workforce. He said if the state would increase its college graduates by 50 percent, within a decade that could bring in an additional $340 million a year to the state. And the route to accomplish this is through the convenience of community colleges-"a God-send for access," he said.

Departments' merger draws concerns On other legislative issues, Health Department Director Fay Boozman said the department will seek an increase in the water testing fees, which the League opposes. He said water testing fees need raising because inflation and personnel costs have increased significantly since the last increase in 1993. The state-imposed fee is placed on city and town water bills, also a mechanism that the League opposes. Residents of the state "are getting more and more unhealthy," and the department is making "a concerted effort to try to change that," Boozman said, but did not go into specifics. Of a proposal to merge the Health Department and the Department of Human Services (DHS) is to "streamline" processes, he said. State Sen. Dave Bisbee of Rogers and Rep. Will Bond of Jacksonville expressed concerns. Bond said the agencies were already too big and Bisbee noted, "Improving your water supply doesn't seem to be a function of the Department of Human Services." He said he was a building contractor and was "not interested" in going to DHS for a septic tank permit.

Bonds said needed for highway work Dan Flowers, director of the Arkansas Highway and Transportation Department, echoing Governor Mike Huckabee, called for the sale of highway bonds to expand the traffic capacity of state highways linking large cities lacking four-lane access to interstate highways. The state has $16 billion in needs but only $4 billion in expected revenues, creating a $12 billion shortfall, Flowers said. He stressed that he "always" supported the current highways revenues split of 70-15-15.

City officials fear state could tap city revenues for courts Keith Caviness, staff attorney for the administrative office of the courts, said a draft legislative bill would merge all Arkansas limited jurisdiction courts, including city courts, under one court system, but attempts to "preserve the current revenue stream." Caviness said other legislation would seek to ensure a uniform salary structure throughout the district court system. City officials later were concerned about a provision that court revenue deficiencies could be paid from a municipality's general fund.

Broaden sales tax base, Woolridge suggests State Sen. Tim Wooldridge of Paragould, chair of the Revenue and Tax Committee, had good words for city officials, who reacted with applause when he said, "I don't see a need for increases in the sales tax, but maybe broadening the base." Cities oppose raising the sales tax, fearing, among other concerns, that raises will impact even more municipalities' ability to increase local sales taxes to meet local needs. Broadening the base, instead, would generate more revenue for the state and cities without increasing the tax rate. Sen. Dave Bisbee echoed Wooldridge's sentiment over being opposed to raising sales taxes again as was done at the special legislative session last year. When the state raises the state sales tax, "your ability to raise the [local] sales tax is tremendously diminished," Bisbee said. Sen. Irma Hunter Brown of Little Rock, chair of the City, County and Local Affairs Committee, had advice for the city officials: "Nothing is more effective than those [city officials] coming to our meetings." She said that while telephone calls and e-mails are useful, " several hundred" e-mails "end up on our computers." But when city officials come to the committee meetings they can also hear "other viewpoints, too." Then she said, city officials have the opportunity "to convince at least four of us your way is the right way." Rep. Benny Petrus of Stuttgart said, in reference to the governor's and state Highway Commission's plans for reconstruction of major highways around the state, that he continues to support the 70-15-15 division of revenues, even with a bond issue to pay for the work."I definitely, unequivocally support the split," he said. Sen. Jim Argue of Little Rock, chair of the Education Committee, said in response to a recent opinion by state Attorney General Mike Beebe, that he did not oppose tax increment financing (TIF) districts, but that he wanted assurance that school districts would continue to receive a minimum of 25 mills from property taxes, as mandated by state law. Beebe says that the millage intended for the schools cannot go to TIF districts. Argue added that he wanted to work with cities and counties on how they can deal with the financial issues of improving infrastructure, dealing with blight and others.

February 2005
More than 900 participants attend first Winter Conference
Ten municipalities mark their 100th anniversary
Frequently asked questions of law



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