Board of Directors - Regular Meeting

We go ahead and begin. I appreciate each and every one of you joining us this evening. It's the very hot July 21st. And while we're here, I guess on at least Channel 7 said we're at 102 Clinton, Arkansas was about 113 Stuttgart about the same so. I guess it could be worse. Our invocation will be led by Wallace Yamaguchi, and I'll lead the pledge. All rise.

Our Heavenly Father, blessing and glory and wisdom and thanksgiving and honor and power and might be to you, our God, forever and ever. We pray, Lord, if it is your will, for the peace and prosperity of our beloved city, not for our glory, but for yours alone. We intercede on behalf of our mayor, our directors, our city manager, and all others in leadership or support roles as together they focus on the business before them tonight. We pray they will be united in mission, focus, and voices for the good of the people they represent and the greater good of our city. We pray for wisdom and integrity as they consider routine business and make decisions on the resolutions, ordinances, and any other business that should be addressed tonight. And we pray any conversations with and from our guests tonight will be respectful and productive. Thank you for hearing our prayers. Thank you for your kindness and your patience as you continue to mercifully call us back to you and for any additional favor you would grant us. In the name of Jesus, our Lord and coming Savior. Amen.

I'll now call this meeting to order. Please call the roll.

Director Aaron Holiday. Here. Director Phyllis Beard. Present. Director Marsha Dobbs-Smith. Present. Director Dudley Webb.

Here.

Director Karen Garcia. Here. Director Steve Trustee.

Here.

Mayor Pat McCabe.

Here. At this time, we'll consider approval of the agenda. Are there any additions, deletions to the agenda or items on the consent agenda to be moved to new business? Hearing none, I'll entertain a motion to approve. I've got Director Trustee, seconded by Director Garcia. All in favor, signify by saying aye. Aye. Opposed, same sign. Agenda is adopted. Moving on to the approval of the minutes of the regularly held meeting of July 7, 2026. Are there any additions, deletions, or corrections to the minutes as presented? Hearing none, I'll entertain a motion to approve. So moved. Director Webb, seconded by?

Second.

Director Dobbs-Smith, all in favor signify by saying aye. Aye. Opposed, same sign.

Minutes are adopted.

Special guest, Director Dougly Webb has a special guest.

Yes, thank you, Mayor. In this great city of Hot Springs, there are so many phenomenal people. This evening, I've got the distinct honor and privilege of recognizing one of those individuals and presenting this person with a key to the city of Hot Springs. Michael Todd's nickname is Monster, and when you all witness me present to him the key to the city in just a few minutes, you will know just exactly how and why he has that nickname. But Michael isn't just a monster. He is a beacon of hope for everyone in this city, in this state, and across the world. His story is what allows this beacon to shine so bright. It's a story that resonates so well with so many of us in that he is living his dream. A dream of his that started 36 years ago in Magnet Cove just down the road from here. It was 36 years ago that Michael began his journey in arm wrestling, doing a sport that wasn't near as popular as, say, football, baseball, soccer, basketball. But it was a sport he loved and also a sport that he was determined to master. A few losses would occur along the way, many setbacks, few injuries, many chances where Michael could easily say, that's enough. give up however those words were never part of Michael's vocabulary today I'm proud to share that at 53 Michael continues to arm wrestle and is the current light heavyweight world champion and he lives right here in Hot Springs Arkansas to date and I hope I'm right with these numbers If not, it's Bill's fault.

As usual.

To date, he has secured 24 world titles and 36 national titles. That number, I think, went up as of June, correct? Yes. OK. How many up? 48 national titles as of June. So it was 36 prior to June of this year. And then June at the event in Little Rock, you secured.

June was the World Championship.

The Nationals were impulsive. I just entered 12th class.

48 national titles. This is the type of success and honor that we should acknowledge, embrace, and allow to lift up everyone in this city, especially our young minds. This 36-year trek to glory in arm wrestling should serve as a reminder to everyone to not give up on yourself and to get up each morning with a positive mindset. In closing, there are four goals that I hope to see happen in our city as a result of this being the home for the world champion arm wrestler Michael Todd. Number one, that the convention center install a life-size cardboard cutout of Michael Dodd. Number two, that Michael break the Guinness Book of World Records for most arm wrestling matches in 24 hours right here in Hot Springs. So A&P, if you're listening. I'm talking to you. Please help us out. Number three, that Michael be invited into our public schools here in Garland County to share his message of hope with all of the students in the seven public school districts that are here in Garland County. And then number four, that everyone chooses to never give up on success. In 2024, Michael was inducted into the Hot Springs Walk of Fame and also led the St. Patrick's Day Parade that same year. Tonight, it gives me great pleasure to present to you, Michael, the key to the city. I want to... call you and your family and friends up to the podium at this time. And I also want to ask Mr. Tom Wilkins to come up to the podium as well. And I want to thank you for being so kind to introduce me to Michael a few months ago.

Thank you, sir. Thank you very much. Appreciate it.

Oh, yeah, that's it, doesn't it?

Go ahead. Sorry, John.

I just want to say thank you to Dudley, Tom Wilkins. They've been big supporters. I just recently met Dudley, but Tom has recommended me for the Arkansas Walk of Fame, and it's been an honor. I love Hot Springs. I love Arkansas. Thank you to all my family and friends that came out today. I hope I can live up to this. I do want to go to the schools and talk about just setting goals, reaching those goals, setting new goals. No matter how many times you get knocked down, get back up. But this means a lot. Thank you guys so much.

It's time would you like to speak. But everyone. Any words of it left in this time.

Thank you. You all have no idea what this means to Michael. This sport, I'm sure many of you may be asking the same question that I did the first time I met him, which was, that's a thing. You do that out of past grade school. You keep going, you know. And I have found out in these Decade and a half that I've been with him that arm wrestling is indeed a professional sport. It's taken us all over the world. We have lived experiences that I never dreamed of. But this. I don't do this. This last world championship. was a really big one. In February 23, his arm completely came apart. He had some big goals that year. And it was the year had barely even started and he was at a tournament that really did not matter as far as winning national championships or world championships. God's plan was a little bit different than his was at that time. He thought he was going to go on and win a hundred different awards, first place awards that year. We were actually on the road to do a tour of the United States. And pulling someone that he should not have had any issue with, his arm just completely came apart. His bicep tore and when we went to the doctor, 10 years previous to that, we had met someone on an airplane and Michael called him and he said, do you know anybody that could fix my arm? He says, as a matter of fact, I do. There's a doctor in Atlanta and he works on some of the best athletes in the world, getting them back to what they love doing. So we went there immediately and that surgery. with that physician actually allowed my husband's arm to be even better than it was before the injury. He had about a softball size ball of, it was kind of like a coral reef of extra bone growth that they cleaned out. And then repaired the bicep tendon. And from there he said it's going to be 12 months before you can actually be on the arm wrestling table again. But Michael did all of his physical therapy. He walked the road exactly like the doctor said and he set a big goal. And that goal, he said, I'm gonna go from broken back to world champion. So this last world championship was the first one on that new arm. And the fact that you guys in his home city are recognizing him, you have no idea what this means at this time. Thank you so much for your time.

Are you guys through hugging back there? I'm not done. I'll do this quick. I've been able to induct probably 125 through 130 people in the Arkansas Walk of Fame since its inception. And I can honestly say that Michael's story touched my heart. Michael's story, excuse me, Michael's story is one that we all should be inspired by. I've been out to his place several times, and he says, what you doing here? I said, I'm just looking. And he's sitting there pumping and doing his thing. And it made me feel that maybe I needed to buff up. So I did. And this is what you see today. But honestly and truly, these folks, Rebecca and Michael, are great Christian people. And I don't say that very lightly, because I know a lot of people who claim to be Christians that skirt the edge sometimes, maybe even me sometimes. but truly good people and i want to thank dudley for accepting the information as you did and follow follow through is everything on everything that we do and you follow through on this for michael this guy back here will be a huge ambassador and already has been for hot springs national park arkansas the city we love thank you all thank you

now we'll hear from our city manager mr bill burrow on the city manager's report

Bill? Thank you, Mayor, members of the board. I want to start off with some of our new hires and promotions, as I typically do under my report. I want to recognize Cameron Guerin, new hire in Utility Lift Stations Maintenance Tech, Samuel Harmon, Utility Billing Services, Brendan Fuston, Utility Lift Station Maintenance Tech, Samuel Sangster, Water Production Plant Operator, Michael DiGiacomo at Firefighter, Joey Kilzer, also a firefighter, as well as Cooper White. Want to welcome all of those individuals into our city's family. We're glad you're here and hope you find it worthwhile as you begin your service to the citizens and residents that we serve. I also want to congratulate several promotions. Jarrett Cantrell was promoted to police lieutenant. Tyler Ward was promoted to police sergeant. Sean Woodall promoted to police corporal. Jeff Alexander was promoted to our street crew supervisor. Rachel Canada was promoted to short-term rental coordinator. Jameer Gettings promoted to urban forestry equipment operator and Richard Hanley was promoted to the water distribution equipment operator. So congratulations to all of those that I just named on their recent promotions. With dangerous heat continuing across our area and triple digit heat index values expected to return later this week, the Hot Springs Community Resource Center remains in cooling shelter mode, providing a safe place for individuals and families to escape the extreme temperatures. The Community Resource Center is located at 109 Hobson Avenue. It's open Monday through Friday from 8 to 5 PM, and this weekend from 10 AM to 4 PM. Yesterday alone, the center welcomed 158 people seeking services and relief from the heat, while also serving a record 135 lunches. As the number of guests continue to grow, donations are needed. The most needed items are fresh fruit, things like bananas, oranges, dill pickles for heat cramps. Watermelon, bottled water, snacks, crackers, those kind of things. So if you're inclined to make a donation, you can make those there at the Community Resource Center at 109 Hobson Avenue. Stokes Creek Greenway, the City of Hot Springs Park and Recreation Department invites the community to the ribbon cutting ceremony celebrating the completion of phase one of our Stokes Creek Greenway Trail. The ceremony begins at 9.30 AM this Thursday, July 23. Parking will be available at Camry Park, with shuttle service provided to the nearby trail entrance. where the ribbon cutting will take place. There'll be some light refreshments following the ceremony. This is a big step. As you know, we have continuously worked over the years to build the Hot Springs Creek Greenway Trail. And this is the first phase of a second trail that will go along Stokes Creek. This particular portion will take you from Kimmery Lane all the way to Leonard. It's not a long strip, but it's already there. And you drive by, and you already see people using this stretch of that addition. The city of High Springs is also seeking your feedback as we apply for the bicycle-friendly community recognition to the League of American Bicyclists. If you've ridden a bicycle in Hot Springs, we encourage you to take a few minutes to complete a brief five-minute survey and share your experience. The survey is open through September 8th and can be found at the city's website at hotspringsar.gov. speaking of the reset of the community resource center today friends of the hot springs community resource center received a hundred thousand dollar grant from the Levi foundation to support individuals and families in need the funding will help provide essential services such as utility and rental assistance medication assistance, transportation, veteran services, and assistance with obtaining identification and birth certificates, which is a huge impediment in some of those that, some of our guests that come to the Resource Center. This is the first of what will become an annual grant opportunity providing ongoing support for our community. And we sincerely thank the Levi Foundations for its generous investment in Hot Springs and the Community Resource Center. I want to recognize the Police Department. The Hot Springs Police Department, in partnership with Special Olympics Arkansas, recently held its Tip a Cop fundraiser at Longhorn Steakhouse. As you know, the police department has several events each year, from the Polar Plunge to the Tip a Cop, Shop for the Cop, all of these great things that they do in the community, and primarily for Special Olympics Arkansas. Thanks to the generosity of our community, the event has already raised $3,831 through cash checks and digital donations. That doesn't include the donation and contributions coming in from Longhorn Steakhouse. We're sure that the $5,000 goal that we had set for the event, that the PD set for the event, will be raised. And just want to thank everyone who donated and helped support the Special Olympics of Arkansas with our police department. regional first responders last week cause police department partnered with several local public safety agencies to conduct three active attack incident responses or a I are training exercise at Lake Hamilton high school the training brought together forty five participants from the hot springs fire department hot springs police department LifeNet, 70 West Fire Department, and Lake Hamilton Fire Department to strengthen coordinated emergency response, improve communications, and enhance preparedness for critical incidents. This training is planned as an annual program with the goal of ensuring all participating agencies complete the course before advancing to more specialized training. Exercises like this help ensure our first responders are ready to work together effectively when every second counts. I want to put a spotlight on Corporal John Albright. He was kind of the lead organizer of this event and preparedness. And what a fantastic job that he did, as well as all of those that participated in the event. I want to talk a little bit about parking. As the board charged me several meetings ago to pull together some of our merchants in the downtown area, some of the business owners in the downtown area to start having some meetings. We've been meeting about every other week. We'll be bringing you some of those recommendations very shortly. At your next meeting, we'll have one that will increase the amount of free parking in the downtown area, should it pass. Some of the things that we're working on is Exchange Street. A lot of the downtown employees have to walk to a free parking spot that may be adjacent to Exchange. So we're really doing some lighting improvements there. We found that we think we have enough lighting on the street, but some of the bulbs are dim. We're exchanging those out to all LED lights. So that should light up that particular area. We're working with Energy now to make those additions or those improvements to the lighting. We're working on potentially purchasing an additional parking lot. that is at the end of Exchange Street. It holds about 75 spaces. We've made an offer on the property. They wanted to have a second appraisal, so that's going through the process now to get a second appraisal. The city did have an appraisal on the property. It was $180,000. And we did make that offer contingent on board approval. So we'll continue to work through that process to potentially purchase that parking lot from the Levi Foundation. We'll also bring you something. We've been monitoring the parking deck for quite some time. We have a counter there. We know about how long people stay in the parking deck, what their parking behaviors are. So as we move through that process, about, I don't know, about 40% of the parking deck is underutilized. what we're finding primarily of those that are coming into the parking deck are visitors we think most of those the the tenure of stay the average length of stay in the parking deck is a hundred and seventy seven minutes so right at three hours which lends me to believe that's probably a visitor that's enjoying the downtown area and then leaving. We have some upper deck floors that are not being utilized. So we'll be bringing you something at your next meeting that would open up free parking to level 3A and 3B. we'll see how that does and we may come back in and look at even to be but right now we're going to start with three a three B it release about seventy five additional parking spots should that pass and that will be a free parking in those upper to let the levels and that will be open to employees and those that live in the downtown area as well. One of the other things we're very close now to to having Park Mobile. We think we've got everything worked out with them. We're having signs made now. We're a little concerned about how some of the clutter could be with signs. So we're taking our Park Smart signs that we currently have. One side will be Park Smart for those that have that app. The other side will be ParkMobile for those that have that app. ParkMobile is the largest in the world. It's the largest in the United States. A lot of people are used to that. But I can tell you that ParkSmart has a lot of activity. I think last month we had somewhere around $50,000 come through the app. So we know that it's being used. But it was cumbersome initially trying to get that up and running. But I think those that have downloaded the app are certainly using that

And then finally was our police presence.

And working with the chief, we've been able to add an additional officer in the downtown area. So we have two down there working about 10 hours a day. I think they're alternating shifts. We also have our CRPT team, which has additional officers down there from Friday and Saturday. I think that's from 2 to maybe 11, somewhere in that time frame. So we've got a lot of presence of the downtown area where it's already paying off for hearing some really good positive comments back from from our business community merchants that are down there and they're hearing it even from some that are visiting so that's been a welcome addition as well so those are some of the things that are coming out of the parking committee that you charge me to form and work with. And then finally, everyone knows we're going through a big change with our software, our financial billing, and our financial software itself, switching to BSNA. That software, which includes our payment system for all city transactions, including the billing functions, we're transitioning to that. During the transition, online and pay-by-phone payments are temporarily unavailable through July the 29th. We're hoping to get that a little bit sooner, but we feel like a good target date is July the 29th. If you try to pay online or by phone, the payment portal will not be available. This includes a portal that is utilized by customers who are applying for a building permit. That's another portion of the change that we have coming into BS&A. Utility customers may still make payments by cash or check at the utility billing office located at 324 Malvern Avenue or by check in one of the city's payment drop boxes. There's one at the airport. there's one behind 324 malvern and there's one at the corner of the city hall parking lot customer customers that are enrolled in bank draft they will not be affected by the transaction your bank drafts will continue to happen if you receive an email stating that your payment has has been cancelled then you were signed up for a reoccurring credit card payment and you'll have to sign back into the portal after july the 29th and set that back up there will be no late charges or cutoffs during this transaction during this transition time so we want to make sure that that those that are used to paying with the credit card know they have the ability to come in and pay by cash or check But we will not have any late fees or cutoffs during that time. That's always a concern as we go through a transition like that because that next couple of months, hopefully those that are coming in are still going to come in and make their payments. A lot of times you might get two or three payments behind and you just can't get caught up. And then we see kind of a spike in those disconnections. So we're encouraging everyone to still make your payments, still come in and conduct business there at 324 Malvern. We appreciate everyone's patience and understanding as we complete this upgrade to provide a more efficient and user-friendly payment system. There's a little bit of pain on the front end, but I think the benefits will far outweigh that. The last thing I have, Mayor, is I will be on vacation next week. I won't be in Arkansas for just about a week, taking the family and going down to some blue water. but we'll be back the week after Lance bicer will a deputy city managers bicer will be the acting city manager next week course I have my phone I may not be looking at it very often but it will be with me but I want to make the board aware of that as well if you have anything pressing over the next. They are to be sure and get those over to me. Thank you very good any questions of our city manager.

Hearing that, we'll move on. At this time, we'll hear from individual directors on announcements of upcoming events. Director Garcia.

Thank you, Mayor. I wanted to remind everybody that beginning next week on July 30th, the Spa City Classic Indoor Pickleball Tournament will be across the street in the Convention Center at the Bank OZK Arena. And that goes on through August 2nd. And we have a lot of pickleball players and fans in the region. And this is always a huge tournament. And it's not too late to come out and set up and test against other players in our region. Come out and support pickleball.

Very nice. Director Webb. thank you mayor I want to make everybody here and those watching aware of a district for slash community-wide town hall that's coming up July thirtieth Thursday July thirtieth at five thirty p.m. will be held at the Garland County Quorum Court building which is it is it still called the Mahoney building that kind of the technical name for it or The corn court building.

I think the sign may still say Mahoney. Right.

It's at 210 Woodbine Street. There will be several guest speakers there that evening and then all local candidates will be given an opportunity to give introductions and share a message to everybody that evening. JP, Jimmy Young is going to provide a county report and I'll be presenting to everybody a city report. There will be free food this go around it's going to be tacos again I don't I just don't think you can go wrong with tacos also refreshments and then lots of opportunity for fellowship so again it's Thursday July 30th district 4 slash community wide town hall 530 p.m. at the quorum court building bring your friend bring a neighbor bring your whole family come on down it's going to be a good event look forward to seeing everybody Thank you, Mayor.

Thank you. Any other updates or announcements? Director Holliday.

Thank you. OK, I'd like to announce that it's the 15th anniversary of the Foul Play Cabaret. They're the longest running cabaret troupe here in Arkansas. They're having a 15th anniversary Roaring 20s themed event Saturday, August 1st at 7 PM at the Vapors at 315 Park Avenue. The public is invited to come and see the show and celebrate with them. They began here in Hot Springs. They're still located here in Hot Springs. Also, dressing up in vintage glamour is strongly encouraged, so definitely get your flapper fringe out if you're going to go. And they're also celebrating the birthday of one of the founders and original members, Rosalie Bloom, that night. So tickets can be purchased at VaporsLive.com. And again, that is Saturday, August 1st at 7 p.m.

Very good.

Any additional announcements of upcoming events? Hearing none, we'll move on to the consent agenda. These are of a routine nature. They do not merit individual discussion. So I'll entertain a motion and a second to approve the consent agenda as presented. Director? I move. Trustee, seconded by Director Garcia. All in favor signify by saying aye. Aye. Opposed, same sign. consent agenda is adopted we have two new business action items for this evening the first is consider resolution R dash twenty six dash one twenty nine and ask city attorney to read by title resolution R dash twenty six dash one twenty nine a resolution acknowledging the review of the twenty twenty five annual comprehensive financial audit report that concludes your reading mayor if you would entertain a motion second to adopt. Motion to adopt.

So moved.

Seconded by Director Dobbs-Smith, seconded by Director Webb. Staff report will be provided by Finance Director Karen Scott. Welcome.

Thank you. Good evening, Mayor and Directors. Arkansas statutes require the governing body to review the audit reports and accompanying comments and recommendations relating to the report at the first regularly scheduled meeting following receipt of the report. The governing body is then required to take appropriate action relating to each finding and recommendation. The minutes of the governing body must document the review and any action taken. For the year ending December 31, 2025, the auditors issued a clean opinion on the financial statements. There were no reportable conditions found to be a material weakness. The 2025 Annual Comprehensive Financial Audit Report, or what we know as the ACFER, which looks like this, was delivered to the board of directors on July 7, 2026, and is posted on the city's website and linked to this BARF for your convenience. We will now have a brief presentation from Becca Kaiser with Forvis Mazars LLP about the 2025 ACFER, and she will review the findings and recommendations contained in the report. Then the board of directors will be asked to formally acknowledge the report. Becca?

Good evening, everybody. I appreciate you having me here to talk about the audit. I won't make this too long. The scope for today's presentation is we'll go over the scope of the audit and any results, and then also a brief overview of the financial activity for this year. And then I'd be happy to take any questions you all may have after that. So, the scope of the audit is we gave three different opinions. The first was our opinion on the basic financial statements, and then the next was a report on internal control over financial reporting, and the last was a report on compliance for each major federal program and internal control over that financial reporting. And as Karen mentioned, all reports were clean, meaning that we did not find anything that we felt warranted a finding in the report, and the financial statements are materially correct. So on those second two opinions, a part of that is that, yes, we look at your financial statements and make sure the numbers are correct, but we also look at your internal control over how those numbers get to your financial statements. And so with both of those matters, we also noted no matters reportable. Nothing we've deemed to be a material weakness or a significant deficiency in those internal control structures. So I do want to do a brief overview of the financial activity. The financial statements are, I think, 206 pages long. We are not going to go over the entire report. So I pulled out a few key tables here. As you can see, there's a lot of different areas. And I do just want to highlight, you can see how many things are in that, and management does a great job pulling together everything that goes into that. Karen and her team, it is not a small lift, and they do a great job with that. So we really appreciate their help during the audit process. So, and I do apologize, the font is a little small, but in the financial statements, there's a table that gives the condensed summary of your statement of net position, or what you may more commonly hear referred to as your balance sheet. And I just wanted to highlight a few key items here. If you look at your assets, they went up about $50 million, primarily related to capital assets. That means you're investing in those assets that are providing services to your citizens. And along with that, there was an increase in debt this year for the business type activities. So your wastewater went out to get debt to help finance that activity. So those kind of offset on your ending net position there. So this next one here is your statement of activities, which also known as the income statement. And so here, this first slide talks about the changes in revenues. And as you can see on your governmental activities, it was honestly pretty level. There wasn't much change from year to year. On the business type activities, there was a decrease of about $3 million, but I just wanted to highlight that's almost all due to capital grants. So 24 was a little bit abnormal in that you got a large grant to fund some capital activity that did not recur in 25, and that's just what caused that decrease there. And then on the expense side, again, it was pretty level this year. They actually went down a little bit for governmental activities. And on the business type activities, there was about a $4 million increase, but that was related to that debt you went out and got. And so your interest expense increased this year for that. But overall, it was a really solid year. You had positive change in net position or positive net income for both the governmental activities and the business type activities, about $6 million each. So with that, I'd be happy to take any questions that y'all may have.

Directors have any questions? Director Garcia.

First, I really like the report and format and kudos to everybody that works to make that so good. And were there any opportunities for improvement that we need to be aware of?

There was nothing that we felt rose to the level that the board would need to get involved in those areas of improvement.

And I remember seeing you across the street.

Yes, A&P Commission.

So the same questions you're in looking at are retirement. And actually, well, the APERS, I guess, went up a little bit, but the other uniformed officers didn't appear.

Yeah, so your pension liability actually went down this year. And That is a pretty fluctuating number. And a lot of it has to do with how the market performed on the year that these were valued as of. So these were valued as of 2024, because there's a lag. It takes a long time for those numbers to be ready. And so they had a pretty good market year that year. And so the liability went down. That may go back up if the market dips. Yeah.

Yeah. At some point. And I really appreciate all the statistics and I might make note of since 2016 we have the board in the city's been able to increase our fund balance almost 59 million dollars so we've got a fund balance 66 million 554,000 so when some of these projects come into being

we have the money there too that's why we build it up because we want to invest in the city and we'll have it there to do so yes and there are some recommended thresholds to keep that fund balance at as like a percent of expenditures so I'd encourage you to look at those but yes you are correct it is a pretty strong performance

And did you include that in here, your recommended balances?

It's not in the report. It's not a financial statement requirement. It's just best practices. And the Government Finance Officers Association will sometimes publish that. And so it's a great resource there.

Thank you.

Any additional questions? Hearing none. Thank you. Thank you. Appreciate having you.

Good job, Karen.

So we have a... we have a resolution acknowledging we've already did the motion second please call the roll to read your way did we have any discussion amongst directors anybody sign up okay thank you

Please.

All right.

Director Holladay? Aye. Beard? Aye. Dobbs-Smith? Aye. Webb? Aye. Garcia? Aye. Trustee? Aye. Mayor McCabe?

Aye. Resolution's adopted. Our final action item of the evening is to consider Resolution R-26-130. And I ask the City Attorney to read by title.

resolution R dash twenty six dash one thirty resolution to declaring a certain structure located one away Barrett Street a nuisance condemning saying were sent to tell seventeen of the hot springs code that conclusion reading Mary if you would entertain a motion to adopt motion to adopt summer second of Smith seconded by director Webb in our neighborhood services manager Mister James Hardidge will provide the staff report welcome

Thank you, Mr. Mayor, members of the board. Before jumping into 108 Barrett, I did want to take the opportunity to say thank you to the board and to Bill and Denny and Lance for the work that's been done at 900 Whittington, the new city offices. My team, neighborhood services, along with the building safety team, got moved in yesterday and today, and we really appreciate the new facility that you provided for us. Moving into 108 Barrett, the City of Hot Springs proposes condemnation for the purpose of demolishing and clearing a vacant single-family residential structure, which is located in District 2. The property is owned by Mr. Timothy Corpy of Vassar. Michigan is currently certified to the state with the property tax balance of $924.88. Mr. Corpy is also the owner of of several properties here in hot Springs, 2 of which was 106 and 107 Barrett Street, which were both condemned and subsequently raised and removed by the city in 2024. Those combinations and removals resulted in leans totaling $12,022.04. However, in total, Mr. Corpy has leans totaling $25,001.92 to the city of hot Springs. Neighborhood Services has issued several vacant structure notices to the owners requesting that repairs be made to the structure. Requests included damaged rafters, decking and roofing, missing windows and doors be replaced, paint. and remove trash and debris from around the structure after requesting a limited title search to confirm ownership the planning and development department issued a consideration of notice of combination to the owner and we did receive the signed green card back due to the extended deterioration and the inability or unwillingness of the property owner to either secure the structure or to make repairs to stabilize and having no reasonable alternative we are recommending that the structure be raised and removed

Any questions of Mister Hartage. Director Webb.

Thank you mayor. Mister James I think a lot of the questions that I'm going to ask you here have come up before in similar scenarios but to paint that image again in our minds and maybe for people listening when you mentioned to us that there were just a little over twenty five thousand dollars in in lean that is owed to the city on this property. After condemnation and potential demolition, if passed here tonight, if the current owner were to sell this property, what kind of has to take place in order to see that happen? Could somebody buy the property from the current owner? And if they do, would that person then be subject to paying the liens to the city? Is there some type of negotiations that take place if a new property owner buys a property and they have intentions of fixing it up? Can you kind of break that whole process down for us?

One clarification. The $25,001 is not on this property. It's on two other structures.

So this one just has 12 plus the thousand and fifty five little under a little over $13,000 correct plus some tax the the 12,000 is for one of 6 and one of 7 Barrett Street for the demolition of those 2 structures. In in addition to those demolitions at one of 7 we Barrett Street we had to do a homeless camp removal that was that was pretty substantial And then we've had to cut the grass and do other work at all three of the properties. So in total, it all comes out to $25,000. But if somebody wanted to buy just say 107 Barrett, they would just be responsible for the portion of those liens for 107 Barrett Street.

Plus the appraisal cost of the property?

Correct. Whatever the title company and all that, dealing with the realtor and all that, that would be in there. And when they do the title search, it should show that there's a lien, so they should know up front. They should not be blindsided by that. Unfortunately, some people arrive at our office and find out that there was a $200 or $300 lien that they didn't know about and we're there either they'll either pay that or or city management has has worked with potential owners to to take care of that that's not necessarily done in my office but it is done up here on the second floor okay thank you a demolition lien is filed of record just like a mortgage would be and it runs with the land the lien is good for 10 years

I'm so it if someone were to try to purchase the property within that 10 year window that lean would attach.

What what happens to the lane after 10 years. You can't you can't force it any longer.

Any additional questions on this item like a loophole. Maybe not a good one. hearing no questions will move on to. We have one person wants to speak on this item Mister Tyler Draper please come forward restate your name address and district please.

Good afternoon Tyler Draper I live in district five I got friends that live in district two by this property and when we get to this point that we're having to again condemn houses where we're already failing because Whatever led up to this, we're not doing something right to make sure that people are fixing them up. And I applaud Mr. Hardidge, because I know it's not an easy job. But I have so many questions about this process. One of them is, what assistance does the city offer to these people who are struggling to keep their house clean? Does the new resource center, do they try to partner these people with non-profit construction groups or people to help fix it up? Could the city help lead these people and partner with churches? I mean, I'm a teacher and I know a lot of our students need volunteer hours. So it just we already have a housing crisis as it is and no one wants a house like that in their neighborhood but I just want the city to maybe have a better long-term plan because like Mr. Webb just said after 10 years and the lien's going to go away we're giving people a free opportunity to get the land scraped they're going to sit on it for 10 years nothing's going to be done And after the 10 years, then they're going to sell it cheap. And it's just, I don't know. I guess my question is, what assistance are we providing to prevent us from getting to this position? Thank y'all.

Any questions of the speaker?

Director Beard, did you have a question? She's asking what the answer is. He asked a question.

Are we going to answer that?

Yes. There are actually two ends of your questions, I think. First of all, is what do you do on the front end? In situations like this, this is not someone's home that they lived in. This particular property owner owns multiple parcels inside the city limits. He does not live in the city. He does not maintain them. I could ask Mr. Hartage to tell us how far back his file goes on this property. I would suspect it goes back more than 10 years. We attempt to notify the owners. We find the owners. We clean up the property. We file liens for that. You can't make somebody take care of their property. With respect to what we do now, there is a demolition that will take place if the board approves it. There will be a lien. The options are not limited to allowing the lien to sit there for 10 years. You could certify the lien to the taxes, which is something that we've discussed doing for several years now. It hasn't come to fruition. another option is to foreclose on your liens but you know you're spending money to chase money you may never collect so it's a it's a matter of economics and what is the most prudent method to take I feel like that the board should consider adopting in the near future an ordinance whereby you would certify the liens to the tax rolls. At least that way, if they do go up for tax sale, we'll collect our liens at that point. But that still doesn't mean that a responsible owner then owns the property. Lots of these properties that we're talking about started out that way. They purchased the property at a tax sale and never did anything with them.

Mayor not add to that that you know one of the things that we did implement is taking every property the city has a lean on and doing an overlay map on our mapping system and we've got developers now they're going to that lean map looking at these properties. contacting us, you know, they'll check to see if there's back taxes on it. They'll call us and see what the liens are. And we've had some very successful projects that are happening based on these properties where we have liens. And so that's something else that we're doing. And if we've got somebody that we know is in the market of building affordable housing and getting them back out there, will work with them on the lanes to get it to a point to where you know they can be successful in bringing this property but even though it's a vacant property bring it back to to a marketable place that the infrastructure is already there right. Water sewer curve gutter those kind of things are already there so it's there. There are several that are looking for those properties and looking for the right ones to come back and rebuild and have some infill development where we've taken a structure down in the past.

Any additional comments director Dobbs man.

It looks like this particular parcel would be a good one for an investor because you've got three consecutive properties. They're all contiguous, right? I believe so. There's a vacant lot on each side of it.

I know two were for sure.

So that would be a great spot for...

development bills right there's there have been you know several local developers some of whom you know they've been in here before you various various items that have purchased of the liens and then they have gone through the foreclosure process in order to to develop a property and it makes financial sense for them to do it whether it makes financial sense for the city to do it is a question for you

Any additional. This well I will move into discussion amongst directors any discussion amongst directors on this item. Hearing none please call the roll.

Director Beard no. I web I.

Garcia aye trustee aye holiday aye mayor mckay aye resolutions adopted that concludes the action items for this evening will move into board of directors items for discussion we have items for discussion director trustee thank America. Heard that 900 putting 10 is open tonight and like for the people to go down and see this yeah we're going to schedule a a chair for the board.

Something we've talked about we want to get the desk in there get your some life in it where you know when you come it's not just a vacant building and say it's a workable building and I think you'll be very impressed on what we've been able to do over there.

well we all saw it prior to when we started on it and so I'm sure there'll be quite the transformation yes sir thank you any addition additional items for discussion we will have a public comment session after the immediately after the board meeting but if there's no further items for discussion director Garcia I move to adjourn second motion is second to adjourn all in favor