January 29, 2009MINUTES
WEST MEMPHIS CITY COUNCIL
JANUARY 29, 2009
A special-called meeting of the West Memphis City Council was held on Thursday, January 29, 2009 at
1:00 p.m. in the Mayors Conference Room at City Hall, 205 S. Redding, West Memphis, Arkansas.
Mayor Johnson called the meeting to orcier at 1:00 p.m. Senior Deputy City Clerk Cindy Greenwood
called the roll. Those present were: Mayor Vlrrlliam H. Johnson, City Attorney David Peeples, City
Treasurer Frank Martin and Councilors, Herman Coleman, Marco McClendon, Willis Mondy (arrived at
1:15) James Holt, Taz Tyrone, Phillip Carter, Tracy Catt, Ramona Taylor, and James Pulliaum. Absent:
Alde-women Lorraine Robinson. Quorum being present, Mayor Johnson proceeded with the meeting.
Mayor Johnson said the reason for the called meeting was to approve the 2009 budget. Finance
Director Frank Martin passed out the budget and the Sales Tax Report.
Mayor Johnson said he would like the City Counal to approve establishing a $650,000 line of credit at
a local bank to cover an expelled general fund shortfall in the 2009 budget. Mayor Johnson and
Finance Director discussed the budget's $646,000 deficit. Mayor Johnson submitted a list of
suggestions for consideration to address the city's shortfall. (See attached list) After discussion,
Alderwoman Taylor moved, seconded by Alderman Pulliaum to approve the 2009 budget and to
establish a $650,000 line of credit at Fidelity National Bank, to be used only if necessary. The motion
carried by unanimous vote.
Aldervvoman Taylor moved, seconded by Mondy, to approve payment to the Arkansas Municipal
League in the amount of $112,640.62 for membership dues and legal defense and $247,120.58 for
Workers Compensation. The motion carried by unanimous vote.
Alderman Catt recommended that the council try to finalize a plan to address the budget shortfall
before the end of the first budget quarter, some time before April 1~.
Having no further business to come before the City Council, the meeting was adjourned.
PASSED and APPROVED this 5~.~ day of February, 2009.
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WILLIAM H. JOH N, MAYOR
ATTEST:
~P ~ ARA, CITY CLERK
Minutes prepared by Cindy Greenwood, Sr. Deputy City Clerk
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Items we have submitted for consideration:
1. Reallocate'/z of sales tax designated for street department. This would provide
approximately $625,000.00 to the General Fund and would require a vote of the people.
2. Increase franchise fees, cablevision, Centerpoint Energy, S.W. Bell. This would
provide limited funds. Require council vote.
3. Increase A & P tax by 1% this would provide approximately $625,000.00. This
would require a vote of the council and the A & P.
4. Add a public safety fee to all utility bills, $2.50 each residential and $5.00 to each
commercial' and industrial account and would require a vote of the council. The city
attorney expressed reservations regarding the legality of this at the present time.
5. Ask the citizens to approve a'/4 of 1% local sales tax, this would produce
approximately $1,000,000 of which a substantial portion would be generated from out of
city people.
6. That the city council can approve up to 5 mills to go to General Fund-$266,667.00
per mill.
I wish to emphasize that all the above were suggestions from the administration and not
necessarily recommendations.
We recommend that the council approve the establishment of a line of credit at a local
bank to cover the deficit. This line of credit would not be used unless absolutely
necessary. This would allow the council and administration to choose and pursue the
most viable long solution to our current problem.
205 South Redding • West Memphis, Arkansas 72301 • (870) 732-7500