A budget adjustment of $800,060 for the Pine Bluff Urban Renewal Agency coming from the 2017 sales tax for the completion of a go-kart track and the Sixth & Main Project was approved by the Pine Bluff City Council, but the last-minute appropriation split the council and had to be approved by Mayor Shirley Washington.
According to the latest financial report presented at the Ways & Means Committee meeting Monday by Go Forward Pine Bluff CEO Ryan Watley, $4,013,677 has been put back for the projects. However, the total construction and operational expenses have exceeded this amount, leading to a net deficit. The revenue sources for the complex include:
Go-kart track balance: $1,554,677.87;
GFPB grant: $1.6 million;
October and November Revenue allocation: $859,000.
Independent reporting for Pine Bluff & Jefferson County since 1879.
The breakdown of expenses for the complex includes:
Balance owed to Sixth and Main Construction: $474,319.35;
Sixth and Main FF&E (furnishing, fixtures and equipment): $136,000;
Sixth and Main Operations (2-year projection): $360,000;
Sixth and Main Phase II Retrofit and FF&E: $300,000;
Sixth and Convention Housing Grant Match: $200,000;
Rail System (Amusement Products): $55,242;
Go-Karts (Amusement Products): $119,706;
Mini Golf (Amusement Construction): $125,000;
Go-Kart Track (Amusement Construction): $298,700;
Beebe Commercial Construction Co.: $1,715,980;
Level 5 (8%): $137,278;
Miscellaneous 10% (Change order, FF&E, security, signage, artwork, décor): $171,590;
Paintball construction/supplies all-inclusive: $160,000;
Go-kart operations (2-year projections): $360,000.
The subtotal of these expenses is $4,093,816, with the total construction expenses amounting to $4,613,816.
The net result is a deficit of $600,139.
This shortfall raised concerns about the financial sustainability of the projects. Council Member Bruce Lockett said that the city council has never known what the budget was from the beginning for these projects and when he asked, he never received a response.
Lockett said the spreadsheet indicates functionality adjustments may either increase or decrease the budget, suggesting that there is still room for financial maneuvering.
Washington told the council members the shortfall was a result of the $2 million taken from the projects to help fund the Delta Rhythm and Bayous project. Officials anticipated recouping the money to fund the GFPB projects that were allocated from the 2017 sales tax with the expectation that the tax would be renewed.
“The tax collection ended in September, but we are two months behind in the tax money coming in,” said Washington. “The budget adjustment would come from sales tax money that came in for October and November which has not been budgeted.”
“We are just asking to finish the projects,” said Urban Renewal Executive Director Chandra Griffin.
The budget adjustment was passed on to the full council where discussion continued at the Pine Bluff City Council’s final meeting of 2024.
Council Member Lloyd Holcomb Jr. presented a budget adjustment of $800,060 from the 2017 sales tax to be allocated to Urban Renewal to complete the Sixth and Main and the go-kart projects.
This budget adjustment sparked a debate among council members. Council Member Glen Brown Sr. questioned the timing of the allocation, stating, “This go-kart project and the Sixth and Main project have been going on for over a year or two years and now we’re just deciding to give them the last of the tax money. I’m kind of baffled about that.”
Lockett expressed concerns about the lack of appropriation for this expenditure in the 2024 budget and suggested that the decision be carried over to the new administration in 2025 when Vivian Flowers becomes mayor. “I can’t support this because it is unanticipated money that they didn’t look for in the 2024 budget,” said Lockett. “I don’t have a problem with it going to Urban Renewal but I think the new administration should have something to say about how the city works with Urban Renewal going forward.”
Washington defended the budget adjustment explaining that the funds were necessary to complete the projects and fill the shortfall created by the $2 million transfer from the 2017 sales tax budget to Delta Rhythm and Bayou earlier in the year.
“We knew there was going to be some money coming from somewhere when we removed the $2 million from that budget… this is the money that helps to fill in that shortfall and to help us make sure that those projects are completed,” Washington said. “We want to drive these projects to completion and we want to make sure there will be funds there for the operations. We are just thankful the money came in to help us finish those projects.”
Council Member Steven Mays Sr. asked if GFPB would come back to the city to ask for any more money.
“Hopefully not,” Washington said. “Hopefully this is enough to cover everything that is needed.”
During the meeting, it was revealed that the go-kart track project had faced delays due to unforeseen issues, such as the discovery of water under the site, which necessitated adjustments to the construction plans.
Council Member Lanette Frazier said the money was indeed budgeted in 2024 because the $2 million was originally in there for projects that were then removed for Delta Rhythm and Bayous.
“We should use the 2024 sales tax money for what it was for, to complete the projects,” she said. “Everybody has been fussing about the projects not getting done and they want to see it done and here we are at the end of the field ready to cross over and now here it is, some more delays on trying to keep us from finishing the projects.”
Holcomb said the total needed was actually over $900,000 and the amount being requested was less than what was needed.
The council’s vote on the budget adjustment resulted in a tie, with Holcomb, Steven Shaner, Frazier and Laticia voting in favor, and Mays, Lockett and Brown Sr. voting against. Glenn Brown Jr. was absent. Mayor Washington cast the tie-breaking vote in favor of the adjustment.