The local foreclosure markets in Northwest Arkansas and the Fort Smith metro areas continue to slow with fewer filings each month following a national trend.

Throughout the first half of 2014 there were 406 total foreclosure filings in Benton and Washington counties, down 62% from the same period last year. That rate of decrease was nearly three times the level reported for the U.S. housing market, according to Irvine, Calif.-based RealtyTrac.

There were 613,874 U.S. properties with foreclosure filings — default notices, scheduled auctions and bank repossessions — in the first half of 2014, down 23% from the first half of 2013. The report also shows that 0.47% of all U.S. housing units (one in 214) had at least one foreclosure filing in the first six months of the year.

Foreclosure filings in Arkansas fell 42% from a year ago. In the Fort Smith metro area, Sebastian and Crawford counties reported 111 foreclosure filings from January through June of this year. The number of filings declined 57% from the same period in 2013.

RealtyTrac reports that June filing numbers were lowest since the housing bubble burst in 2006. In Benton County there were 44 new filings recorded in June, compared to 103 a year ago. Washington County reported 28 new foreclosure filings in June, down 56% from a year ago. 

Sebastian County reported 44 new foreclosure filings in June, down 47% from a year ago. Crawford County had 7 new filings last month, compared to 23 filings in June 2013.

“Over the next six to nine months nationwide foreclosure numbers should start to flat line at consistently historically normal levels,” said Daren Blomquist, vice president at RealtyTrac. “There continue to be concerning trends in some states and local markets that clearly indicate those markets are not completely out of the woods when it comes to the lingering foreclosure problem left over from the housing bust.”

Arkansas is not one of those states. The Natural State ranks 42nd among the 50 states surveyed by RealtyTrac in terms of foreclosure activity.

The number of foreclosure listings in from Benton County to Sebastian County totaled 214 as of Wednesday (July 16), according to Jim Long, real estate agent with Crye-Leike in Bentonville. The distressed listings are a little higher compared to the 204 reported last month, but lower than the 322 listings of foreclosures in Northwest Arkansas and the Fort Smith metro area in December.

“While it’s important that any remaining foreclosure infection is addressed promptly to keep it from festering, foreclosures are no longer a widespread contagion threatening to derail the housing market’s return to full health,” Blomquist said.

More loan modifications also help to curb the number of foreclosure sales, according to Hope Now. The latest date available is from May which shows total loan modifications, short sales, deeds in lieu and workout plans outpaced foreclosure sales by a margin of almost four to one (approximately 151,600 solutions versus 39,700 foreclosure sales), according to Hope Now spokesman Brad Dwin.

In May, mortgage servicers completed 102,000 workout plans for homeowners. These are non-loan modification, non-foreclosure alternative that provide short-term relief for homeowners who continue to work on permanent options. Repayment plans and liquidation options are part of this category. Hope Now also reports completed foreclosure sales declined again in May by 4%, while foreclosure starts totaled 67,200 across the nation, up almost 4% from the the prior month.

At the end of the second quarter there were approximately 1.9 million mortgages that were 60 days or more delinquent, according to the Mortgage Bankers Association. Serious delinquencies have declined for three consecutive months.

Eric Selk, executive director for Hope Now, said there have been 7.05 million loan modifications made since 2007. 

“We have noted the number of short term solutions in this month’s data as well. These non-permanent options are crucial to homeowners who may have a loan modification or other permanent course of action on the horizon. There are myriad options for homeowners struggling to pay their mortgages and the efforts of the industry remain strong. Housing challenges vary from state to state and city to city and mortgage servicers have many tools at their disposal to handle these challenges,” Selk added.
 
FORECLOSURES (January-June)
Benton County
2014: 284
2013: 718

Washington County
2014: 122
2013: 356

Sebastian County
2014: 68
2013: 142

Crawford County
2014: 43
2013: 116

The River Valley Sports Complex took another step forward at Tuesday's (July 15) Fort Smith Board of Directors regular meeting with a vote approving a financial assurance agreements between the city and RVSC.

The city said the agreements would protect its interests.

"The assurance is a list of equipment or work with stated discounts or donations," wrote Fort Smith Parks and Recreation Director Mike Alsup in a memo.

"The city agreed to fund up to $1.6 million dollars for this project and Jake (Files) and Lee (Webb) agreed to provide assurances that the rest of funding needed or in-kind services and donations would be met," he told the Board Tuesday.

Alsup said the U.S. Army Reserve was preparing to go to work Aug. 1 on grading the property, which will be completed in about one months time. Alsup has previously reported to the Board that the military reserve units working at the site would work in two different two-week installments, with work slated to be complete August 28.


Webb said work was already taking place at the site in preparation of the Army Reserve arriving on site to complete its mission, which is being provided at cost (supplies, fuel, etc.) to RSVC as part of a larger training mission for the reservists.

Included in the Board packet provided to city directors and the media was a progress report of financial assurances, which estimated the national guard site work to be a total donated value to the organization of $1.2 million.

Other donations include the 62.9 acres of property at Chaffee Crossing donated by the Fort Chaffee Redevelopment Authority valued at $943,500, engineering and design work valued at $60,000, scoreboards valued at $40,000 and a portion of the concession stand and restrooms with a total donation of $150,000.

In all, donations for the site — according to the progress report — stand at a value of $2.394 million. Overall, the progress report said the total value of the site will be about $4.325 million though the estimated real cost will only be $1.591 million.

Some of the documents presented to the Board as part of the assurance did not necessarily have price tags attached, something Vice Mayor Kevin Settle said he would like to have seen. Webb said he and Files would make sure to add total price to many of the items donated by various corporations so the city has an idea of what the value of various donated items actually is.

If the estimated real costs hold true, the city will see the complex completed for slightly less than the $1.6 million committed to the project.

And the city could see a boost to the local economy as a result of the investment.
In an e-mail to the Board before Tuesday's meeting, Files pointed to a sports complex in Blaine, Minn., which recently had a $3.2 million expansion and is hosting a youth soccer tournament at the site.

"Tens of thousands of athletes and soccer fans are expected to descend on the Twin Cities this week for the USA Cup. The tournament is held every year at the National Sports Center – the largest soccer complex in the world. This year’s event includes 1,060 youth soccer teams, and more than 15,000 players from 21 states and 19 different countries. The tournament brings more than $20.4 million of economic activity into Minnesota every year," the press release said.

The RVSC has been touted by Webb and Files as a tournament quality field that would drive economic development and Files again made his point before the vote.

"This announcement shows what we have been saying all along. Our complex can be and should be an economic driver and will have an economic impact on our Region," he wrote.

The River Valley Sports Complex is scheduled for completion in the spring of 2015.

Consumers in Arkansas are not as optimistic as their neighbors in Missouri or Oklahoma and the there is division in sentiment within the Natural State as well, according to the first Arvest Consumer Sentiment Survey released today (July 17).

The consumer sentiment index for Arkansas was 67.4, trailing that of Missouri (68.6) and Oklahoma (76.4). The national index for June is 82.5. The local survey was conducted in May and June by the Center for Business and Economic Research at the University of Arkansas and the University of Oklahoma’s Public Opinion Learning Laboratory.

“These new consumer sentiment data indicate that Arkansas can expect continued on-again, off-again growth. Until consumers indicate that they feel confident about their economic futures, personal income growth will be the key to additional spending and a breakout recovery. We will look forward to our next data point to begin telling us about trends in optimism,” Kathy Deck, director for CBER at the UA, said in a statement.

Deck said the initial readings indicate that consumers in the region, and especially in Arkansas, are “leery” about overall economic conditions in the near future, although they reported being relatively upbeat about their current financial status. 

“The consumer sentiment numbers seem consistent with the contradictory nature of other economic data for the state, particularly the declining labor force in the face of improving payroll employment,” Deck added.

The report indicates a rising degree of confidence among higher income levels and those with advanced graduate degrees. Arkansas families earning under $75,000 annually registered at 62.6 on the index, families earning more than $75,000 a year indexed at a reading of 82.2. A similar variance was found in the index by educational attainment with high school or less registering at 60.8, the same level as those with bachelor’s degrees. This was considerably lower than the 81.7 index level for consumers with graduate degrees.

As predicted, those with jobs have a brighter outlook than the unemployed ranks looking for work. The report found employed respondents in Arkansas registered a reading of 71.8, lower than the 74.2 for the three-state region. Unemployed Arkansans indexed at 57.3, below the 61.3 reading in the three-state area.

The Arkansas economy has demonstrated contradictory economic performance during the first half of 2014, according to Deck. 

Declines in the unemployment rate, usually considered positive overall, can be accounted for by declines in the labor force, which is not positive news, according to the Bureau of Labor Statistics. There are 16,000 fewer jobs in the state today than at the peak ahead of the recession. The Bureau of Economic Analysis reports that state personal income levels have grown faster than the national average since 2000 but declined at the end of 2013 and beginning of 2014 due to declines in farm income.

Homeowners in Arkansas were not as optimistic as renters according to the report. Homeowners indexed at 66.1, while renters had a reading of 68.6, both were below the respective regional readings of 71.1 and 69.8.

The presence of children in the home also raised the level the optimism among Arkansas respondents with a reading of 69.5, the same as the regional index level. Arkansas households without children indexed at 66.4, lower than the 69.9 level in the tri-state region.

The last subgroup in the survey was an index by age. Among Arkansas respondents those between the ages 25 and 44 had the highest reading at 73.9. Adults between the ages of 45 and 64 registered a 68.1 on the index. Young adults indexed the lowest at 54.8 while senior citizens 65 and older registered 62.3.

Again, Arkansas residents had lower sentiments by age category than the region as a whole, which indexed young adults 18 to 24 years at 73.3. Adults between 25 and 44 indexed at 78.3, while older adults (45 to 64) registered 69.3 and 63.4 for seniors over 65 years of age.

This first report will serve as a baseline for future surveys every six months, the next report is due out in late November, ahead of the holiday season.

“When Arvest first considered sponsoring this survey, we thought it would be beneficial for our communities to have an accurate reading of what consumers think about the economy in the states where we operate,” said Donny Story, CEO of Arvest Bank in Fayetteville. “These first results give us better, more localized, information than what has been available. What is important is simply knowing where people in Arkansas stand in their views — especially since consumers drive the majority of economic activity. With future results, we will be able see if sentiment in Arkansas is trending up or down with sentiment nationally.”

Arkansas commercial airport trends that began early in 2014 have continued through June, with traffic increases in Northwest Arkansas (XNA) and Fort Smith and enplanement declines in Little Rock.

Travelers flying out of XNA during June totaled 65,022, up 14.3% compared to the 56,889 during June 2013. For the first six months of 2014, enplanements at XNA total 308,961, up 8.34% compared to the same period in 2013. The January-June 2014 traffic is up 5.46% compared to the same period in 2007, the year XNA reached record enplanements of 598,886.

For all of 2013, XNA enplanements totaled 579,679, up 2.58% compared to the same period in 2012. The enplanement growth remained stable through the year, with enplanements up 2.42% at the end of the first quarter of 2013.

Enplanements at XNA totaled 565,045 during 2012, up just 0.4% compared to 2011. Although slight, the gain prevented XNA from posting two-consecutive years of enplanement declines. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

FORT SMITH TRAFFIC
The Fort Smith Regional Airport, served by flights from Atlanta and Dallas-Fort Worth, posted June enplanements of 8,393, up 6.56% compared to June 2013. Enplanements for the first six months of 2014 total 44,730, up 6.39% compared to the same period in 2013.

For all of 2013, enplanements at the airport totaled 84,520, down 2.46% compared to the same period in 2012. The decline ended three consecutive years of enplanement gains at the airport.

With 25,785 enplanements for the first six months of 2014, American Airlines accounts for 57.6% of commercial traffic out of Fort Smith. Delta Air Lines had the remaining market share for the first six months of 2014.

American enplanements out of Fort Smith are up 4.92% for the first six months of 2014 compared to the same period of 2013, and Delta enplanements are up 8.46%.

LITTLE ROCK NUMBERS
Enplanements at the Bill & Hillary Clinton Airport (Little Rock National Airport) were 99,066 in June, down 3.75% compared to June 2013. Enplanements for the first six months of 2014 were 514,958, down 6.19% compared to the same period of 2013.

Enplanements in 2013 totaled 1.085 million, down 5.45% compared to 2012. Enplanements in 2012 totaled 1.147 million, up 4.07% compared to 2011. The 2012 numbers ended five consecutive years of enplanement declines at Arkansas’ largest commercial field.

Among the top three carriers in Little Rock, only one has posted enplanement gains between January and June. Southwest, the largest carrier, has seen enplanements decline 16.13% in the first six months. American, the second largest, has posted at 1.46% gain in the period, while Delta has a 2.44% decline in enplanements during the first six months of 2014.

The two men battling to replace U.S. Rep. Tom Cotton, R-Dardanelle, in Congress next year tackled the topic of infrastructure in separate interviews Thursday (July 17), just two days after the House passed a temporary fix to keep the federal highway trust fund afloat until the middle of next year.

The bill, which passed with overwhelming bi-partisan support, would keep the trust fund afloat until May of next year. The New York Times reports that Senate Majority Leader Harry Reid, D-Nevada, would likely scrap the Senate's version of the bill in order to move the House version to a floor vote before the August recess.

Rep. Bruce Westerman, R-Hot Springs, cried foul and said the bill was essentially depleting assets from one fund to keep another fund afloat, which he said was not responsible governance.

"They're trying to keep the trust fund funded. But if you look at what happened there, they're robbing programs like the leaking underground storage tank fund, which people paid into it to fix underground storage tanks, not to have the money robbed and put into some other fund that it wasn't ever intended to go into."

The Republican state representative said moves like the one initiated earlier this week by the House signal why people are fed up with Washington.

Former Federal Emergency Management Agency Director James Lee Witt, the Democratic nominee in the 4th District House race, said he thought the bill was "good" but did have some concerns.

"I think it's good. Anything to help replenish that fund is going to be good for Arkansas," he said, adding his concern about whether the bill would properly address local infrastructure needs.

"The one thing I was concerned about, and I haven't gotten into that part of it yet, is particularly the federal aid side because the federal (aid for states) is the funding that cities and counties use for their bridges and roads, so I was concerned about that."

Witt released his own infrastructure plan this week, which focused on completing Interstate 49 from Alma to Texarkana, as well as construction of Interstate 69 in the eastern portion of the 4th District. The completion of these projects, he said, would lead to economic development during both the construction phase of the projects, as well as in the years and decades following completion of the projects for the communities along the interstate routes.

Asked how a freshman member of Congress from rural Arkansas could influence the House and Senate to pass the funding needed to complete the district's infrastructure needs, Witt said his eight years in Washington as President Bill Clinton's FEMA director would pay dividends for the expansive 4th District.

"Well, I've always believed that one person and one voice can make a difference. And I think I have enough respect on both sides of the aisle (from) the years I've worked with Republicans and Democrats that maybe I can have a stronger voice as a freshman than most people would."

He also said he was in favor of a bill by U.S. Rep. John Delaney, D-Maryland, that would create an "infrastructure bank" to make loans to states and municipalities to fund infrastructure projects. Bonds sold through the bank would theoretically be bought by U.S. corporations, which Delaney's House website said would allow "repatriation while ensuring U.S. corporations’ tax savings are truly invested in the U.S. economy to grow quality jobs" and encourages public-private partnerships.

"It is a very good approach. You know, we've got trillions of dollars in off-shore accounts. And by partnering with those corporations and allowing them to bring back some of that money tax-free and buying bonds to finance infrastructure projects, doing the 'infrastructure bank' is the right approach," Witt said. "But I think it's important that it's not only the federal government's role and responsibility, we're going to have to have a partnership with state and local and the corporate world, as well, in the private sector because it will benefit our economy, it will create jobs. And I think particularly in the 4th District, if we can get I-49 finished and I-69, it's going to really help the economic growth of the 4th District and it creates thousands of jobs."

Westerman said Witt's plan was short on specifics and workable solutions.

"I mean, he talks about the problem. He talks about (how) infrastructure's important to the economy and he talks about public-private partnerships, and he doesn't say what a PPP is there. Which that would be my first question there, is what exactly does my opponent mean when he refers to a public-private partnership? Is he talking about privately owned and operated toll roads and bridges? I'm not sure what he's talking about there."

Witt, a Dardanelle native and former Yell County judge, said he did not support the privatizing of public infrastructure, such as toll roads, though he suggested it should be considered at some point.

"I don't think that I would be for that right now, but at some point every option should be looked at so that we can get the full benefit of infrastructure projects. I think that working through creating this 'infrastructure bank' first and then seeing what we have to do when we get down the road. We've got to get some economic development in Arkansas and the fourth district particularly and I think we (should) look at all options, and what's best for Arkansas and what's best for the 4th District."

Neither man would say that earmarks would be a good way to fund construction of infrastructure needs — especially along the proposed route of I-49 — though the Office of Management and Budget shows several earmark-funded projects over a four year period along what is now I-49 in Northwest Arkansas.

Westerman said if elected, he planned to demonstrate the need for funding I-49 and other projects as a way to get them moved up the priority list for the federal funding versus attempts to get the House to reintroduce earmarks.

The Hot Springs Republican said the biggest challenge to infrastructure funding right now is a combination of wasteful spending at the federal level, specifically citing the Affordable Care Act, as well as challenges at the local level. He said a bill he introduced during the 2011 legislative session that would have eliminated sales taxes on construction materials for public projects like roads and bridges would have made a big difference in reducing the cost of projects across the state, many of which receive federal dollars.

"If that's a publicly funded project, you're borrowing the money to pay taxes and that money gets paid back by the taxpayers. So over a 20-year bond, you're paying 1.6 times or more the cost just to finance the sales taxes in the project," he said.

Whoever wins in November is sure to face additional fights over federal infrastructure funding, with President Obama having already proposed a $302 billion transportation program over four years and giving Congress a tongue-lashing over the bill passed earlier this week that funds the federal highway trust fund only through May 2015.

“Congress shouldn’t pat itself on the back for averting disaster for a few months, kicking the can down the road for a few months, careening from crisis to crisis,” The New York Times quoted Obama as saying. “We should be investing in the future.”

It’s shaping up to be a busy summer for two entrepreneurs – one a recent high school graduate – pushing baby food and video games.

Fran Free, CEO and founder of Oh Baby Foods, said she has lots of irons in the fire as she gears up for a new product launch of toddler foods she hopes to bring to market by March 2015.

“Growth takes capital and expanding a product line quite be quite intensive in terms of time and money. It takes about a year to develop from the concept phase to end product. We are working to secure about $2 million in added capital to support this new product launch,” Free said.

Free is not just interested in securing the loan, but she also hopes to garner advisory expertise with strategic funding partners. The company recently was able to pay off an investor, which Free said felt “really good.”

Earlier this week Oh Baby completed its second production run in two months as it gears up to enter eight states in August with rollouts at Whole Foods and other retailers. The eight states are new markets for Oh Baby, and will give the company a presence in 39 states.

“We are excited to be going to the Rocky Mountain area and the Northeast and Mid- Atlantic regions, where we have not been sold before. We recently brought on new brokers in those regions which took some time to find,” Free said.

Because Oh Baby Foods uses fresh fruit and vegetables in its product formulations the summer harvest period is busy for Free who is working to negotiate contracts with suppliers for the next year.

“We had a production run yesterday, and it was the first time I haven’t been to there to oversee it. This time my food scientist took care of it for me so I could continue to work on other things like the supplier contracts. This is huge for me to be able to delegate something as important as production runs. But having a food scientist to oversee production responsibilities which take place in California makes sense at this time,” Free said.

OVERWATCH
Since The City Wire’s last update, Overwatch CEO Josh Moody graduated from high school and is now working full-time toward product launches that will begin as early as next month.

Moody said the Overwatch gaming application for iOs Apple users was beta tested and submitted to Apple for approval this week. He expects the app will go up on the App store in the next two weeks or so. The Android app continues to be developed, and the company will begin announcing more information about its release in the near future.

Moody said the beta testing including both Apple and Android users and the developers received some good feedback from the tests which they used to tweak the iOs user interface. Improvements were made to the overall gaming experience regarding the location of teammates and use of radar that helps track opponents. Moody said hardware components are taking longer to complete as they are working with Cybergun’s manufacturing facilities based outside the U.S.

“The finalized design on the rail mount hardware is done. We are waiting on receipt of the 3-D printed design from the manufacturer so we can put it through durability and functionality testing. At that point we order manufacturing to begin. We expect to have the hardware case mounts in retail stores before the holiday season,” Moody said.

In the meantime, Overwatch’s armband hardware has been approved and is ready to manufacture once the apps are approved by Apple and Android.

“We still have to design the packaging for the armband product which will be sold online once the apps are approved and manufacturing begins,” Moody said.

The company has not been without a few setbacks. The largest of those being a trademark challenge by a large gaming company.

“We were able to come to an agreement with them, successfully securing the Overwatch trademark for our mobile gaming use — and making us the official Overwatch app on both the iOS and Android app stores,” Moody said.

He said the company is also looking for other products that will enhance the game play of the apps. They are acquiring a Heads Up Display (HUD) which it will use for experimental testing.

“We are extremely excited about the future of HUD integration with Overwatch, as it offers a unique, highly unobtrusive way to display important gaming information right in a player's line-of-sight,” Moody said.

He explained that the HUD product is a SNOW2 made by Recon Instruments which was designed for snowboard/ski goggles, but it can modified to fit into a paintball mask.

All of this work takes money and Moody said the company is working to nail down its final funding round of $300,000.

“The product will be released regardless of the funding raise, but the raise will give us the necessary funds to operate a full marketing campaign to promote our release,” Moody said.

The second quarter was kind to Pine Bluff-based Simmons First National Corp. and Conway-based Home BancShares Inc., with Simmons posting results that beat estimates and Home BancShares – the parent company of Centennial Bank – setting a new quarterly income record.

Simmons First reported better-than-expected second quarter earnings before the opening bell on Thursday (July 17), propelled upward by the Pine Bluff bank's continued shopping spree for strategic out-of-state assets and foreclosed FDIC properties.

For the period ended June 30, the Arkansas regional bank posted second quarter net income of 60 cents, or $9.9 million per share, up 53.8% from 39 cents a year ago. Analysts surveyed by MarketWatch had expected Simmons First to post second quarter earnings of 54 cents per share on revenue of $53.6 million.

“The second quarter was a landmark quarter for Simmons. We announced two acquisitions totaling approximately $3 billion in assets and reported record core earnings and record core earnings per share for the quarter,” George Makris Jr., chairman and CEO, said in a statement.

Overall, Simmons posted record core earnings of $9.2 million for the second quarter of 2014, an increase of $2.7 million, or 42.8%, compared to the same quarter last year. Diluted core earnings per share were a record $0.56, an increase of $0.17, or 43.6%. Core earnings exclude $755,000 in net after-tax earnings.

During the second quarter, Simmons announced two out-of-state acquisitions that will add nearly $3 billion in assets to the holding bank’s financial books. In late May, Simmons announced it planned to acquire all of the outstanding common stock of Springfield-based Liberty Bancshares Inc. in an all-stock transaction valued at nearly $207 million.

Earlier in the same month, Simmons entered into a similar agreement to buyout Community First Bancshares of Union City, Tenn., in a stock-deal value at more than $243 million. Both deals are expected to close by end of the year.

Here are other highlights of Simmons quarterly earnings report:
• Total loans, including those acquired, of $2.4 billion, increased by $512 million, or 27.3%, compared to a year ago.

• Total deposits jumped nearly 30% to $3.6 billion, an increase of $829 million from a year ago. Total non-time deposits totaled $2.6 billion, up 72%.

• Net interest income of $40.4 million, an increase of $10.8 million, or 36.7%, from the same period of 2013. This increase was driven by growth in the legacy loan portfolio and assets acquired through Simmons’ $53.6 million takeover of Metropolitan National Bank of Little Rock in late 2013, the bank said.

Simmons’s shares (NASDAQ: SFNC) closed Thursday at $37.63, down $1.79 in an overall market decline brought about by international incidents. During the past 52 weeks the share price has ranged from a $43.22 high to a $24.06 low.

HOME BANCSHARES
Home BancShares reported record second quarter earnings, easily beating a year ago profits and matching Wall Street expectations to the penny.

For the period ended June 30, the bank posted quarterly profit of $28.4 million, or 43 cents per share, up nearly 60.5%, or $10.8 million, from $17.7 million and 31 cents a year ago. A survey of analysts polled by MarketWatch had expected the fast-growing Arkansas bank to report earnings of 43 cents per share.

Excluding after tax items, Home Bancshares reported second quarter earnings of 44 cents per share versus 32 cents a share a year ago. Company Chairman John Allison said he was pleased with the record quarterly results and is looking to continue to grow in the future.

“During the upcoming quarters, we recognize there is a need for organic loan growth,” Allison said. “We are encouraged by the opportunities we have in front of us because we currently have the largest unfunded loan pipeline in our history.”

During the second quarter, Home BancShares said it closed or merged four Arkansas and two Florida locations. In late April, Home BancShares purchased Traditions Bank of Florida in a stock deal worth $43 million. That transaction closed on Thursday (July 17). Following that deal, the Arkansas bank said it had $7.1 billion in total assets, $5.6 billion in deposits, $4.6 billion in loans and 156 branches across Arkansas, Florida and South Alabama.

Additional highlights of Home BancShares second quarter results include:
• Net interest income for the second quarter of 2014 increased 74% to $78 million from $44.8 million during the second quarter of 2013.

• Total non-covered loans were $4.13 billion at June 30, 2014. Total covered loans came in at $263.2 million for the same period.

• Stockholders’ equity was $897.2 million at June 30, 2014 compared to $841 million at December 31, 2013, an increase of $56.3 million.

Home BancShares (NASDAQ: HOMB) closed Thursday at $30, down $1.08 in the overall market decline. During the past 52 weeks the share price has ranged from a $38.98 high to a $24.83 low.

Arkansas’ jobless rate fell to 6.2% in June, with the number of employed virtually flat compared to June 2013 and the labor force size shrinking by almost 20,000 in the year-over-year period. However, the monthly estimate showed a gain of 3,200 jobs year-over-year in the state’s troubled manufacturing sector.

The June rate of 6.2% was below the May rate of 6.4% and below the June 2013 rate of 7.6%, according to the report issued Friday (July 18) by the U.S. Bureau of Labor Statistics. The June figures are subject to revision.

Arkansas’ labor force was an estimated 1.305 million in June, below the 1.315 million in May, and down 1.46% compared to 1.325 million in June 2013. The year-over-year comparison shows an estimated 19,465 fewer Arkansans in the labor force. There are 53,545 fewer Arkansans in the labor force compared to June 2007, a decline of almost 3.93%.

The number of employed in Arkansas during June was 1.224 million, below May employment of 1.231 million, and just 196 estimated jobs fewer compared to levels in June 2013. The number of unemployed was an estimated 81,609 during June, down from the 84,199 in May, and well below the 100,825 in June 2013.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to a revised 7.5% during 2012. The initial annual average jobless rate for Arkansas during 2013 is 7.5%.

Year-over-year, the Leisure and Hospitality (tourism) sector was up 3,800 jobs, manufacturing was up 3,200 jobs, Education and Health Services jobs rose by 3,000, and the construction sector was up 2,300 jobs.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during June was an estimated 241,700, down from 243,100 in May and ahead of the 240,300 during June 2013. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during June totaled 155,200, up compared to 153,500 in May and above the 152,000 in June 2013. Employment in the manufacturing sector fell in 2013 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during June was 214,600, down from 214,800 in May and below the 215,500 during June 2013.

The state’s Education and Health Services sector during June had 174,600 jobs, down from the 176,000 during May and up from 171,600 during June 2013. Employment in the sector is up more than 22% compared to June 2004.

Arkansas’ tourism sector (leisure & hospitality) employed 108,700 during June, down from 108,800 during May, and above the 104,900 during June 2013. Employment in this sector reached a high of 109,100 in March.

The construction sector employed an estimated 47,300 in June, up from 47,000 in May and above the 45,000 in June 2013. The sector is off the employment high of 57,600 reached in March 2007.

NATIONAL, REGIONAL DATA
The BLS report also noted that 49 states had unemployment rate decreases from a year earlier, and one state had and increase. The national jobless rate during June was 6.1%, and was down from the 7.5% in June 2013.

Rhode Island and Mississippi had the highest unemployment rate among the states in June at 7.9%. North Dakota again had the lowest jobless rate at 2.7%.

The June jobless rate in Oklahoma was 4.5%, down from 4.6% in May and down from 5.5% in June 2013.

Missouri’s jobless rate during June was 6.5%, down from 6.6% in May and down from 6.8% in June 2013.

A recently released feature from National Geographic Magazine titled, “The New Face of Hunger,” documents hunger programs in Iowa, New York and Texas and also includes a four-minute video of efforts by Charolette Tidwell to help provide food to seniors in the Fort Smith area.

“By whatever name, the number of people going hungry has grown dramatically in the U.S., increasing to 48 million by 2012 — a fivefold jump since the late 1960s, including an increase of 57 percent since the late 1990s,” notes a segment from the feature on the National Geographic website. (The video of Tidwell may be viewed at the end of this story.)

The report notes that in 1980 there were a few hundred emergency food programs in the U.S., but that has grown to an estimated 50,000.

“Finding food has become a central worry for millions of Americans. One in six reports running out of food at least once a year. In many European countries, by contrast, the number is closer to one in 20,” according to the report.

TIDWELL’S EFFORTS
Tidwell, who founded the Antioch Consolidated District Association for Youth and Family about 13 years ago with her late husband, organizes food deliveries once a week to poor seniors and families in Fort Smith. The National Geographic feature also includes interviews with Ken Kupchick, director of marketing and development for the River Valley Regional Food Bank.

Tidwell worked at Sparks for 33 years having worked her way up from a nurse to director of nursing. She then worked 10 years for Fort Smith-based Beverly Enterprises (now Golden Living) in nutrition services. According to Kupchick, Tidwell has now devoted her retirement years to getting adequate nutrition to our youth and elderly.
 
At last count, Tidwell and more than 15 volunteers coordinate with food banks and other food providers to help 1,474 elderly and disabled in Fort Smith on a monthly basis. 
 
“Most of the funding for what she does comes out of her own pocket,” Kupchick said in an e-mail note to The City Wire.
 
Tidwell and volunteers deliver approximately 140 bags of groceries to the elderly in places like Nelson Homes, Coleman Commons, West Apartments, Gorman Tower, the McGill Center and Allied Gardens. Kupchick said she also includes a bouquet of flowers, compliments of Walmart, when available.

“I turn no one away. No one,” Tidwell says at the end of the video.
 
The video of Tidwell’s efforts in Fort Smith was produced by Shannon Sanders, a videographer from Piggot, a small town in northeast Arkansas.

Kupchick played a key role in recruiting National Geographic. Magazine editors initially did not want to highlight hunger in Arkansas because the state “was too easy a go-to story,” Kupchick said in a December 2013 interview about the process.

Kupchick pressed the editors and requested they at least use Arkansas to highlight the issue of senior hunger. His persistence paid off. Although the editors opted to exclude Arkansas from the printed piece, they did decide to make a video for their website focusing specifically on the growing threat of senior hunger.

HUNGER STATISTICS
According to Feeding America, 54% of Americans have used a food pantry for at least six months or more during the past year. The report also found that seniors are hardest hit when it comes to food insecurity, with one in three “recurrent” food bank clients being 60-years of age or older.

Following are more hunger statistics from Feeding America and other sources.
• More than one third of all people visiting food pantries (36%) report having used a food pantry at least every month within the past year, and on average use a food pantry for more than 28 consecutive months.

• Among the elderly, well more than half (56%) are long term recurrent pantry users, suggesting that the fixed incomes of elderly may be insufficient to provide for basic needs.

• In 2012, 2.8 million (8.8%) households with seniors experienced food insecurity. 1.1 million (9.1%) households composed of seniors living alone experience food insecurity. The number of food insecure seniors is projected to increase by 50% when the youngest of the Baby Boom Generation reaches age 60 in 2025.

• Seniors are more likely to be food insecure if they: Live in a southern state; Live with a grandchild; Are African American; or Are Hispanic.

• Food insecurity sometimes isn’t about money for the elderly. They may have enough money to purchase food but do not have the resources to access or prepare food because of lack of transportation, functional limitations, or health problems.

• Elderly households are much less likely to receive help through the Supplemental Nutrition Assistance Program (SNAP) than non-elderly households, even when expected benefits are roughly the same. Only 34% receive SNAP benefits who would otherwise qualify.

The Weekly Standard founder, publisher and editor Bill Kristol says Arkansas is “almost” a must-win for Republicans if they are to take back the U.S. Senate.

Appearing on this week’s Talk Business & Politics TV program, Kristol said the Mark Pryor-Tom Cotton U.S. Senate battle is high on national political watch lists and that a Cotton victory is crucial to GOP ambitions.

“If Republicans want to win the Senate in November, this one is almost a must-win,” said Kristol, who was in Arkansas as a keynote speaker at the Arkansas GOP’s Reagan-Rockefeller dinner.

Kristol said he expects a close race this fall in the high-profile match-up and that there are two reasons why the contest is so tight.

“Incumbents are hard to beat and, I gather from my friends in Arkansas, that a Pryor is hard to beat,” Kristol said. He added that outside Democratic group attacks have been effective in tainting Cotton, although he disagrees with their accuracy.

Kristol offered his take on why Arkansas has not shifted into a Republican stronghold like other Southern states such as Mississippi, Alabama or Texas. One reason, he said, is the political power of Bill Clinton whom he described as a “very different kind of Democrat” as governor and as president. Clinton “tacked to the center” often unlike President Barack Obama.

“Barack Obama is not the kind of Democrat that traditional Arkansas Democrats are interested in supporting,” Kristol said, citing Clinton’s bipartisan budget deals, welfare reforms, and foreign policy efforts.

ARKANSAS IMPORTANCE
Kristol also said that Arkansas has always carried much sway in U.S. politics owing to its larger-than-life, influential state politicians who’ve made big impacts on the national stage.

“Arkansas has always been a state of outsized interest and importance nationally,” he said. Kristol grew up studying Sen. J. William Fulbright, and he’s long watched the careers of other politicians like Bill Clinton and Mike Huckabee.

“For a small state, it has always produced nationally significant politicians. I think people in Washington kind of remember that,” said Kristol.

While 2014 will be a monumental election year, it’s hard not to think about 2016. Kristol said it’s too early to predict the GOP Presidential nominee, but he sees a reversal of fortunes in what he describes as a “wide-open” Republican field.

“Republicans used to nominate the next in line, the second place finisher from four or eight years before. Democrats usually have interesting wide-open races,” he said. “It looks like this time, the Democrats are nominating the next in line — the person who ran second in 2008, Hillary Clinton. Republicans are having more of what looks like a classic Democratic primary — governors, senators, former candidates. A lot of them young, a lot of them untested nationally. As a Republican, I like that.”

While he voted for Dole, McCain and Romney, he said those Presidential nominees weren’t the best match-ups versus Bill Clinton and Barack Obama.

“The irony in 2016 is the Republicans will have the younger, fresher face and the Democrats will be nominating someone whose been around for awhile,” he said.

Retail giant Wal-Mart might claim to be a constant low cost leader and match other retailers’ sale prices, but it does not match its online prices and makes no apologies for that policy.

The retailer outlines its policy on its website: “The merchandise and prices on our website do not reflect the merchandise and prices available in our stores. Our stores will not match prices with our online store (or other online prices) because we do not consider them to be in competition with our retail stores. Currently, we do not have access to store inventory lists or price lists at this website.”

Clark Howard, a nationally syndicated consumer advice writer, finds it hard to understand that a retailer claiming to “bridge the intersection of physical and digital” refused to give him the lower online price for a Lego set he recently tried to purchase for his son. The Atlanta Journal Constitution published his report about the experience.

Retail experts from across country have weighed in on this policy at RetailWire, most finding Wal-Mart ‘s actions toward Howard to be a step-back and a poor lesson in customer service.

“Retailers may have their reasons for not matching their own online prices, but to consumers those reasons don't make any sense. Whether it's Walmart, Gap, Target or other stores, all these policies serve to do is make consumers mad. Retailers should do a better job of explaining the practice or drop it,” according to Max Goldberg, president of Max Goldberg Associates.

Other experts like Frank Riso note that Wal-Mart will have to learn that it cannot manage its inventory with two different price models using their stores as pick-up and return centers.

“The consumer knows only Wal-Mart and not Wal-Mart Stores versus Walmart.com. It has taken at least 10 years for retailers to realize that the consumer only knows the brand and not the channel. Wal-Mart will learn, just give them time to reflect on it,” Riso added. He is the principal of Riso & Associates.

Jason Goldberg, vice president of at Razorfish, said the dual pricing policy is “horrible” because with a customer “it's all Wal-Mart.” The differences in overhead costs in the distinct channels are irrelevant to the consumer, Goldberg added. He said it’s out-of-character for the “Always Low Prices” retailer.

“In this world of perfect information and complete pricing transparency, consumers will know they aren't getting the best price from Wal-Mart and will always have to fear that they should be getting a better price — exactly what Walmart doesn't want,” Goldberg said.

Ironically, Wal-Mart has invested millions in advertising campaigns that promote its low in-store prices and recently vowed to roll out its “Savings Catcher” program and expand it to include general merchandise and produce. Wal-Mart has said its Savings Catcher program is about reassuring consumers that they are getting the lowest price when they shop at Wal-Mart’s physical stores. Goldberg notes that consumers may not buy the story given that store prices aren’t even Walmart’s best prices.

Other experts believe Wal-Mart has no choice but to try and match Amazon pricing online, which are apt to change throughout the day. The constant price changes in-store would be problematic. That said, when a consumer asks for the lower online price while in-store and that item will be filled from that supercenter, most believe the correct policy for Wal-Mart is to give that customer the lower price immediately.

“We're definitely seeing some growing pains as new models emerge for retailers to figure out how to do omnichannel. The problem here is that positioning the stores as being in competition with the website seems entirely bizarre, and that message will likely change,” said Matt Schmitt, president of Reflect.

Bikes, Blues and BBQ, an event that began in 2000 with around 300 motorcycle riders, is expanding to include a motorcycle rally at Arvest Ballpark in Springdale that will include a car show, cooking contest and live music.

The event that sprung up in Fayetteville and now has an estimated attendance of 400,000 is set for Sept. 24-27, with Dickson Street and adjacent surroundings in Fayetteville as the center of activities. Other events include the Jack Daniels Charity VIP Ride, the Cherokee Casino VIP Ride and Concert and the Miss BBB contest.

Event and Springdale officials said Monday (July 21) that the “major expansion” of the event to Arvest Ballpark was made possible because of the $23 million Don Tyson Parkway Interchange on Interstate 49. The new road with several access points will allow for the expected high attendance numbers.
 
“We are thrilled to host these popular Bikes Blues and BBQ events in Springdale and at Arvest Ballpark,” Springdale Mayor Doug Sprouse said in a statement. “The thousands of fans who help make this one of the nation’s top rallies now have another great venue for these showcase events. We look forward to rolling out the red carpet to everyone this September.”
 
More than 350 vehicles are expected for the 3rd Bikes Blues and BBQ Car Show which will be held in the Arvest Ballpark parking lot. An additional 100 motorcycles produced prior to 1984 will also be showcased onsite at the Ozark Vintage Motorcycle Association Vintage Bike Show. A veteran’s ride is also planned during the two-day Springdale event.
 
“Springdale and Arvest Ballpark will be a tremendous venue for this expansion of Bikes Blues and BBQ,” said Joe Giles, BBB executive director. “We’ve worked closely with the Mayor, the Chamber and the Springdale A&P Commission in timing this expansion with the opening of the new interchange. Our board believes this will be a home run for the thousands of Bikes Blues and BBQ fans that converge on Northwest Arkansas each fall.”

Perry Webb, president of the Springdale Chamber of Commerce and newest member of the BBB Board of Directors, praised the move.
 
“Arvest Ballpark is an ideal venue for a major event like this. We’re proud our state-of-the-art venue can help this rally continue to grow,” Webb said in a statement.
 
The NWA Steak Cooking Championship, a preliminary contest to the World Steak Cooking Championship, will also be held during the two-day event. Attendees will have the opportunity to sample contestants’ product and purchase a steak dinner from their favorite chef after judging.
 
Springdale will also be home base for activities sponsored by The Ride of the Brotherhood, an organization dedicated to veterans, veterans’ charities and children’s programs, and the Soldier’s Wish Project, an organization that helps meet the needs of wounded or convalescing vets. Arvest Ballpark will also host a Soldier’s Wish Area that will feature live music and some of the region’s best vocalists at the 3rd annual BBB Karaoke Contest.

Link here for the 2014 Bikes, Blues and BBQ event schedule.

Wal-Mart Stores is offering teachers across the country 10% savings on classroom supplies. The retail giant kicked off the campaign in its hometown of Bentonville on Monday (July 21) by presenting the local school district with a $1,000 gift card and surprised each Bentonville teacher with a $25 gift card and a basket of school supplies.

Wal-Mart’s research indicates that 53% of teachers received less in funding last year, which was the catalyst for this year’s event. The retail giant has donated more than $20 million to U.S. educators in the last five years.

Teachers who shop at Walmart stores during its Teacher Appreciation Week (July 25 to 31) are eligible to receive a Walmart eGift Card for 10% back on nearly 15,000 products.

“On average, teachers around the country spend about $1,000 readying their classrooms, and half of that comes from reaching into their own wallets to make sure students have what they need,” said Steve Bratspies, executive vice president, general merchandise for Walmart U.S. “We’ve had a commitment to supporting teachers in the communities we serve for many years. This program is one more way we’re helping lessen the cost, increase support and set teachers up for success.”

The program allows teachers who shop for supplies between July 25 and July 31 to register their receipts online by Aug. 15. By entering the teacher’s school information and receipt transaction code, the retailer can calculate the savings on eligible items and deliver an e-gift card within 14 days of submitting the receipt online.

BIG BUCKS
What’s in it for Walmart? A lot. The National Retail Federation reports that consumers will spend $26.5 billion on back-to-school items this summer. The average family with children in grades K-12 will spend $669.28 on apparel, shoes, supplies and electronics, up 5% from $634.78 last year, according to the NRF release.

“Slow improvements in the economy may have contributed to the growth in confidence among back-to-school shoppers, and while we are encouraged by the overall tone of the results and expect to see continued improvement in consumer spending through the year, we know Americans are still grappling with their purchase decisions every day,” NRF President and CEO Matthew Shay said in a statement.

He said spending has fluctuated based on family needs each year, and this summer, parents are expected to spend cautiously, as they make decisions for their family budget that is a balance between what their children want and what they need.  

Retailers look forward to this event as it’s one of the biggest spending occasions of the year. The survey found parents ready to spend more on what’s needed. Overall, every category will see an increase in spending. According to the survey, back-to-school shoppers will spend an average of $212.35 on electronic items, up 7% from $199.05 last year. 

SPENDING PATTERNS
High school students and their families specifically will spend an average of $229.88 on electronic items. As school districts’ requests for classroom supply contribution rise, spending on school supplies will increase 12% to an average of $101.18, compared to $90.49 last year. 

Households will also spend an average of $231.30 on clothes, up from $230.85, and $124.46 on shoes, up from $114.39 in 2013.

Department stores, discount stores, drug stores and electronics stores are all expecting more sales this year. According to the NRF survey, 64.4% of consumers will visit discount stores, 59.1% will shop at their favorite department store, 38.2% will shop online, 27.5% will shop at electronics stores, and 20.5% will shop at drug stores.

For the first time, NRF asked school shoppers about their plans to shop at local, small businesses for their needs, and 17.4% said they plan to support local, small retailer to buy school items.

A proposed millage increase to be voted on next month would net the Fort Smith Public Library an additional $2.8 million in revenue, allowing the library to expand offerings and upgrade technologies to meet customer expectations.

That was the message library executive director Jennifer Goodson shared when interviewed about the millage increase Monday (July 21), the first increase the library has sought since 1957's increase from a half-mill to one-mill.

Goodson said the current one-mill of property taxes accounts of about $1.4 million of the library's annual operating budget. Additional funding comes from the countywide sales tax, of which the library receives 6% of the city's share of revenue. The amount totaled $921,239 in 2013 and was budgeted at $925,572 this year.

Another revenue source for the library includes $100,000 in fines and fees collections. The library also receives some state funding and grants. The library's 2014 budget was set at $2.7 million.

Should voters approve the two-mill hike on Aug. 12, Goodson said the additional $2.8 million would slightly double the library's budget and allow the largest library system in Sebastian County to expand its offerings.

She said the plan presented to the public through a series of civic presentations, town hall meetings and online at LibrariesChangeLives.us was developed in coordination with the library's staff, board of directors, endowment and other community stakeholders and offers services of some sort for all Fort Smith residents, not just children or adults.

"Part of the intention of creating this plan for the library's future was to come up with a future for the library that impacted every single person in the community. So we didn't want something that just impacted children, although that's certainly important. We didn't want something that just impacted techies, although that's important, too. And so the plan really has something, or I say in many cases multiple somethings, that benefit every single person in the community."

Following are specific areas where the funding will be spent, according to the library's campaign website promoting the millage increase:
• Offer more books, audiobooks, and DVDs;
• Expand special collections such as Spanish language, Vietnamese language, large print, and Genealogy;
• Lease copies of bestsellers to better meet customer demand;
• Offer more digital magazine titles through Zinio;
• Offer more eBooks and downloadable audiobooks through Library2Go;
• Expand the resources available through TumbleBook Library;
• Add new eBook offerings such as Disney Digital, Sesame Street books online, BookFlix, and Safari computer/technology books online;
• Offer Netflix-style streaming video through hoopla, Freegal Movies, and/or other services;
• Update, upgrade, and expand current technology;
• Add computers for children, teens, and adults;
• Upgrade Internet speed, improve WiFi;
• Update and add software for library users;
• Upgrade and redesign the Fort Smith Public Library website;
• Add the ability to accept online payments of fines and fees;
• Develop a mobile app to better direct library users to digital resources;
• Upgrade the Main Library Community Room audio/visual system;
• Microfilm-to-digital conversion project for newspapers and other historical materials;
• Print-to-digital archives conversion project for one-of-a-kind print materials such as photographs and funeral home records;
• Replace digital signage systems inside the libraries; and
• Checkout Kindles/iPads/laptops to cardholders for in-library or outside library use.

Goodson said the decision to add to and improve so many items should the millage pass was made in an effort to serve "every single person in the community."

"And we recognize that not everybody in the community uses every resource and service that we offer and that's part of serving a community the size of Fort Smith. And we also recognize that on a day-to-day or a year-to-year basis, what people need and look for out of the public library will change. Someone with little children is going to use the library very differently than someone whose children are grown and out of the house or who may not have children at all. So that sort of goes back to what I was saying about the plan — we recognize that not everyone in the community will be excited and enthusiastic about every part of what we offer with expanded funding, but we've got several things in the plan that will appeal to folks no matter how they use the library."

While each individual improvement or addition to the library cannot be detailed in each and every presentation, Goodson did point out the need to improve technology at all library locations and not just by increasing the inventory of iPads and computers.

She said the library plans to install RFID (radio frequency identification) at the library's branches in order to improve inventory control and customer service. The technology would not only allow the library to locate mis-shelved books or be notified of books being taken from the premises without first being checked out, but it would also allow for the eventual implementation of self-checkout of books.

"It's one of those infrastructure things that will improve the quality of people's experience when they come into the library when they really don't know what all is going on in the background," Goodson said.

The library's main branch will also feature a "maker space," which she said would allow individuals to use technology such as 3-D printers and video editing equipment for personal projects or possible small business needs such as a training video.

The maker space is not intended to serve as a business incubator, Goodson said, adding that the goal was simply to offer specific technologies to the public.

"In the library world, the philosophy behind a maker space is being able to offer technology to the public that they may not be able to get their hands on another way. And so technology in the maker space environment is very broadly defined. A 3-D printer is one of the most common things that appears in a library maker space and that's something that a lot of people really don't have access to any other way. So this would be an opportunity for people to utilize a 3-D printer that they might now have access to."

The date of the special election, Aug. 12, was selected in order to focus the conversation on library needs instead of being drowned out by other statewide races taking place in November, according to Goodson.

She added that if approved, the two-mill increase to three-mills would cost Fort Smith homeowners (with a median home price of $100,000) about $60 per year, or $5 per month. The current one-mill accounts for $20 per year in property taxes, or about $1.66 per month.

And if approved Goodson said she hopes it is another 57 years before another millage increase is requested.

"But at any rate, we expect the additional two-mills to position the (branch) libraries well into the future. We have very strong facilities, we just now need the funding for what goes on inside the facilities to be as wonderful and as strong and supportive as the facilities, the buildings are."

The Crawford County Quorum Court will look for additional funding for the Crawford County Election Commission after the commission ran out of money following the recent primary runoff election in May.

According to Election Commissioner Bill Taylor, the problem came about not as a result of how the commission spent its budget, but at how the Quorum Court funded the commission.

"They cut the Election Commission's budget," he said, referring to the Quorum Court's attempts at the end of 2013 to balance its budget.

In doing so, the budget for the Election Commission was reduced from an average during gubernatorial and presidential election years of $140,000 to $150,000 down to $90,000.

Any reimbursements the county receives from the Secretary of State's office for conducting elections now instead of going back to the Election Commission instead goes to the county's general fund.

"They anticipated revenue from the state," Taylor said. "It's not been anticipated revenue until this year. Now it comes back to county general. They did it this year to balance the budget."

He said an appropriations ordinance was needed to move funds for Election Commission use to make it through the upcoming school board elections, general election and potential general runoff election. The appropriations ordinance may come to the Court before the Secretary of State's office in Little Rock remits reimbursements to the county for the most recent elections.

Taylor said the county would submit reimbursements to the Secretary of State's office tied to the primary election for about $50,000 in costs. The state has already reimbursed the county for nearly $20,000 in election costs, meaning there would be about another $30,000 waiting to be returned to the county’s general fund. Taylor said the $30,000 could arrive back to the county by September, though he was unsure of an exact date and said it could always change.

County Judge John Hall told the Court that while the funding may come out of county general before reimbursement arrives, "it all comes out of the same pot."

No action was taken on the specific appropriations request from the Election Commission, though Taylor said the funding would need to be in place in time for the remaining elections later this year.

In other business, the Court approved a resolution authorizing Hall to apply for a grant to support the Rural Fire District One in the amount of $48,325. The grant would fund the purchase of new extrication equipment at the fire department under the GIF Fire Protection Grant.

The Court also approved an an appropriations ordinance that amended the FY 2014 Budget for the county, reflecting several contracts tied to construction of the new county jail approved by voters in May. Sales tax revenues have not yet started flowing for the project and Hall said the county was not allowed to incur debt until August.

The new jail will be constructed on Alma Highway/U.S. Highway 64 just outside of Van Buren at a cost of $20 million. It will house the jail, the sheriff's office, 911 center and a courtroom. No date has yet been set for completion, though a representative of Stephens Inc – the financial services company handling the issuance of construction bonds for the project – said the project should be complete by September 2017.

Some reports of the closely watched U.S. freight industry suggest the economy performed well in the first half of 2014, with the only hiccup being a 0.8% decline in the June truck tonnage index reported by the American Trucking Associations’.

The ATA Truck Tonnage Index was down in June after a revised 0.9% gain in May. For the first half of 2014, tonnage is up 2.8% compared to the same period in 2013, according to the ATA index.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, fell 0.5% below the previous month.

“June was one of those months where the data doesn’t quite match up with the anecdotal reports from fleets,” ATA Chief Economist Bob Costello said in the report. “We had heard the freight volumes were good.”

‘THINGS ARE NOT BAD’
Brad Delco, a transportation industry analyst with Little Rock-based Stephens Inc., agrees that the ATA report for June does not match what he sees and hears from the trucking companies he follows. Delco said April and May numbers were strong, with the strength partially a function of demand returning after weather delays earlier in the year.

“June was a very strong month in terms of the carriers I’m talking to. ... I’m not hearing of any material weakening in the freight market,” Delco told The City Wire, adding that “things are not bad in the trucking world right now.”

Delco did say the industry is seeing a “governor” on activity related to capacity issues and driver shortages. He also said the capacity shortage in the truckload industry is pushing some business to less-than-truckload (LTL) carriers like Fort Smith-based ABF Freight System. According to the Stephens LTL Yield Index for the first quarter of 2014, LTL tonnage was 12.692 million, ahead of the 11.831 million in the first quarter of 2013.

In his report, Costello said tonnage had increased for four consecutive months prior to June totaling 4.4%.

“Despite the small reprieve in June, the second quarter was much better than the first quarter. Tonnage increased 2.3% from the first quarter, which was the largest quarter to quarter gain since the first quarter in 2013. Compared with the second quarter in 2013, tonnage increased 3.2%, a percentage point better than the first quarter year-over-year increase,” Costello explained.

Trucking serves as a barometer of the U.S. economy, representing 68.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.4 billion tons of freight in 2012. Motor carriers collected $642.1 billion, or 80.7% of total revenue earned by all transport modes.

The equity markets are betting on positive trends in the back half of 2014. For example, shares of Lowell-based J.B. Hunt Transport Services (NASDAQ: JBHT) were recently upgraded by Credit Suisse and Sanford Bernstein. The shares have traded recently at or near the 52-week high, with late Tuesday afternoon trades at $78.95 reflecting a more than 1.1% increase. During the past 52 weeks, the share price has ranged from a $79.89 high to a $69.33 low.

Also on Tuesday, the company announced a quarterly dividend of 20 cents per share payable Aug. 15 to shareholders of record as of Aug. 1.

The Dow Jones Transportation Index was up more than 1% in Tuesday afternoon trading, and at 8,445.10, was trading near the 52-week high of 8,468.89. The 52 week low is 6,212.54.

THE CASS REPORT
The Cass Freight Index for June showed shipments up 2.4% and freight spending up 4.2% – a difference that shows the rise in prices related to the combination of increased demand and tightening capacity.

“June shipment volumes increased 2.4 percent to the highest level since November 2007, just before the recession. Volumes were 6.0 percent higher than a year ago and are up 15.8 percent since the beginning of 2014. Construction and manufacturing activities – both drivers of demand for transportation services – have been rising for several months,” Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., noted in the Cass report.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the index. The data comes from a Cass client base of 350 large shippers.

Wilson, who authors the Cass report, said the outlook is good for the trucking and shipping sectors because “current growth sectors in the economy depend on transportation services.”

Wilson also said recent GDP reports do not necessarily bode ill for the transportation sector. The federal Bureau of Economic analysis reported June 25 that the first quarter GDP fell at an annual rate of 2.9%, following a GDP rise of 2.6% in the fourth quarter of 2013. The contraction was the most severe in five years.

“Despite some talk that the slowing and then contracting economy could signal another recession, the foundation and building blocks for a growing economy are stabilizing and growing,” Wilson noted. “Sales of both new and existing homes are increasing, industrial and government construction have been up for the last several months, and manufacturing has been largely growing for close to a year. Retail sales have yet to show signs of significant growth, but they are not shrinking either, and consumer confidence levels have surpassed pre‐recession levels.”

Travel, office moves and adding product lines have kept the days busy for the management at Picasolar, DataRank and Ecovet – three of the five startups followed by The City Wire in 2014.

Travel has been the name of the game for Picasolar executive Douglas Hutchings since The City Wire’s last update on the Fayetteville-based solar startup. Picasolar’s focus is on technology for N-type solar cells.

“We visited our equipment partners (Roth & Rau which is part of the Meyer Burger group), presented our work at the SunShot Grand Challenge (as a SunShot awardee), and attended Intersolar (a major industry event). We are participating in the state-wide Energy, Jobs and the Economy workshop for candidates and elected officials of the Arkansas legislature which is taking place in Bentonville, Arkadelphia, West Memphis and Little Rock in the coming weeks. To top it off we will be making a road trip to visit our partners at Georgia Tech at the end of the month with a stop in Tennessee to meet with a potential investor,” Hutchings said as he caught his breath.

He sees the company’s participation in the workshops as a way to engage decision makers at the state and local level to raise awareness of the jobs in the advanced energy sector.

Hutchings shared that the technical part of the business has also been fast and frantic but has resulted in some new opportunities and a few challenges. He said the National Renewable Energy Laboratory and a third party have validated the company’s ability to use less silver with its N-type solar cells.

“Will get final reliability testing in the coming days and have developed a full cost model for equipment that we would like manufacture locally,” Hutchings said.

He said closing the funding round is taking longer than he had hoped.

“We are working through the details with top-notch folks inside and outside Arkansas and anticipate it being finalized before the next update,” Hutchings said.

Picasolar recently recruited Rick Schwerdtfeger as its new chief operating officer “who has successfully executed our business model in an adjacent industry,” according to Hutchings. He said the startup continues to look for talent to add to its small team.

“We are starting to run into resource restraints to take advantage of all the opportunities that have arisen due to the progress above. We have had to focus on the highest priority partnerships and avoid spreading ourselves too thin,” Hutchings said. 

DATARANK
The past two months have been busy for DataRank CEO Ryan Frazier and team who recently moved their big data firm to uptown Fayetteville, from a smaller location on the downtown square.

Frazier said the company continues to add new supplier customers to its growing client base each month.

“We are finishing up a new dashboard application and plan to launch that product subscription in August,” Frazier said

The dashboard feature will integrate online consumer data from social media feeds, to chat and blog forums that helps suppliers and retailers hone in consumer attitudes and sentiment about certain products, stores and shopping experiences.

ECOVET
Ecovet management said the company continues to add new sustainable furniture products which are handcrafted by veterans while they continue working toward college degrees.

“Our sales are increasing since getting our furniture on SamsClub.com and we continue to add a few new products to the mix. We are working to get the product in other retailers, but it’s too early to report on that at this time,” said Andrew Bogner, manager of the Springdale manufacturing center for EcoVet.

He said the company continues to do road shows with Sam’s Clubs and is looking at growth potential outside of Northwest Arkansas.

Because the business model uses reclaimed wood from discarded semi-trailers, finding enough trailers locally has been challenging, Bogner said.

“We are looking other facilities expanding to Las Vegas and along the Mid-Atlantic region from the Carolinas into the Northeast, where there is an abundance of veterans and discarded trailers,” Bogner said.

He said the company is looking for a second location in Northwest Arkansas. Ecovet has custom furniture pieces on display at Mixed Manner in Springdale, located at 103 West Emma Ave., and several products are also sold online at Sam’s Club.

Link here for the recent update on Fayetteville-based Oh Baby Foods and Overwatch, a company managed by a recent high school graduate.

The City of Fort Smith has already begun preparations of the fiscal year 2015 budget and members of the city's Board of Directors had their first public opportunity to weigh in on the process Tuesday (July 22) at the group's noon study session at the Fort Smith Public Library.

In a memo to the Board regarding the work underway for 2015's budget, City Administrator Ray Gosack told city directors that the city's financial situation appeared to be improving compared to the previous year.

"Our 2014-15 financial outlook has improved compared to our 2013 outlook," he wrote. "The local unemployment rate is currently at 6.3% compared to 7.8% at the same time last year (a 19% reduction). Inflation is approximately 2%. Revenues are meeting budget projections for the most part, and we've not had to consider service or spending cuts as we did last year. For 2015, we're projecting most major revenue sources to grow slightly or remain flat. These include sales tax, property tax, franchise fees, water and sewer sales, street operations revenues, and sanitation revenues as outlined below. No rate, tax, or fee increases are included in these assumptions."

The city's sales taxes (1% for streets and 1% combined for water and sewer projects and fire and parks and recreation) collected $3.005 million in the May report, 7.4% lower than budgeted.

Overall for the first five months of the year, revenues from the city's sales tax collections are 1.08% below last year's totals for the same period. Collections so far in the 2014 reporting period of the two taxes were $16.363 million, where the same period in 2013 saw collections of $16.542 million. The same period in 2012 saw $16.769 million.

POSSIBLE RATE INCREASES
Even though no rate increases were included in the assumptions outlined by Gosack, he did acknowledge that sewer rates increases "will likely be necessary in order to begin implementation of the consent decree requirements for wet weather sanitary sewer system improvements."

Sales taxes are projected to grow 1%, while property tax and franchise fees are expected to grow by 2%, he said. Sanitation is not expected to have any growth in revenue, while street maintenance is expected to show "normal growth of 0.7%."
The assumption, without taking into account possible rate increases, for water and sewer stands at "normal growth of 1.8%," Gosack wrote.

City Director Keith Lau asked whether the consent decree requirements would necessitate additional spending in the 2015 budget or whether it would hold off until 2016.

"I think we'll probably have to spend starting in 2015," Gosack replied. "It may not be at the beginning of the year, but sometime in 2015 we'll … I think right now, we'll begin implementation of those requirements because otherwise we'll fall behind."

Gosack added that the city was in the process of quantifying how much the city would have to spend to be in compliance with the consent decree and said another round of meetings with the U.S. Department of Justice and the Environmental Protection Agency in coming months as the city works to no longer be in violation of the Clean Water Act.

Work is already underway on two wastewater overflow storage tanks near Zero Street and Jenny Lind, as well as a pump station on Navy Road. The Jenny Lind project has cost taxpayers more than $18 million, while the Navy Road project cost nearly $13 million.

FUTURE PENSION LIABILITY COSTS
To be added to the budget later in the year are goals and items included in the city's update to the comprehensive plan, which City Planning Director Wally Bailey said would likely be complete and ready for adoption by the Board sometime in October.

Gosack said work on the budget could include just "generic information" tied to the comprehensive plan update until the final version of the plan is adopted by the Board. While not an immediate problem, one issue addressed during the budget discussions was the upcoming pension liabilities, which City Finance Director Kara Bushkuhl said would be in a deficit in approximately 2018.

"The impact to the city's budget will come when there are insufficient funds to make the required contributions for the police and fire," she said. "And we're projecting that to be after 2018. ... That's when it will affect the budget, but as far as the financial statements, they will show a huge liability for those and they've always been reported."

Gosack said Fort Smith is not alone with the problem of unfunded pension liabilities. It is for that reason that Mayor Sandy Sanders said Fort Smith administration and elected officials were working with the Fort Smith delegation to the Arkansas General Assembly seeking a solution to the problem that will bubble over in 2018. Bushkuhl said the solution developed by the legislature could result in local tax increases to cover the liabilities.

"What has been discussed is either allowing individual cities to increase their millage. Another suggestion has been a specific sales tax for the police and fire pension. Just the legislature is going to have to give us a funding option to take care of this because like Ray said, it's not just Fort Smith."

Some Republican candidates in Arkansas are jumping on the opportunity to comment on Tuesday’s (July 22) rulings by two federal appeals courts that affect the nation’s healthcare law.

The rulings came within hours of each other. A divided court panel in Washington ruled that the subsidies that help millions of low- and middle-income people pay their premiums can only be paid in states that have set up their own insurance exchanges. But in Virginia, another appeals panel unanimously came to the opposite conclusion.

U.S. Rep. Tom Cotton, R-Dardanelle, said in a statement about the first ruling: “Today’s ruling is just the latest example of why we must start over on healthcare reform.”

Cotton has made his opposition to the federal healthcare law a cornerstone of his campaign against U.S. Sen. Mark Pryor, D-Ark., who supports the law.

Pryor responded to the ruling too, taking after Cotton.

“Congressman Cotton isn’t leveling with Arkansans, and that’s because he has no solutions except kicking 180,000 working Arkansans off of their private health care plans, raising taxes on nearly 40,000 more, and returning to the days where insurance companies denied coverage to Arkansans with pre-existing conditions,” Pryor said.

Republican and State Representative Bruce Westerman – who is running for Cotton’s congressional seat – said in a statement that both rulings “highlight the fact that Obamacare was a poorly-written takeover of people’s healthcare and an ill-conceived law.” Westerman faces Democrat James Lee Witt in November.

The White House says policyholders will keep getting financial aid as the administration sorts out the legal implications. The Department of Justice said Tuesday that the Obama administration will push for a review by the full 11-judge panel.

The department issued this statement: "We believe that this decision is incorrect, inconsistent with Congressional intent, different from previous rulings, and at odds with the goal of the law: to make health care affordable no matter where people live. The government will therefore immediately seek further review of the court's decision. In the meantime, to be clear, people getting premium tax credits should know that nothing has changed, tax credits remain available."

Some legal experts say that if the two appeals courts remain in conflict, the issue may find resolution by the U.S. Supreme Court.

ALCOHOL SALES
A Friday firm lawyer representing a group opposed to a proposed constitutional amendment that would allow the legal sale of alcohol in all 75 Arkansas counties has asked Secretary of State Mark Martin to stop accepting petitions for the measure.

The Arkansas Beverage Retailer’s Association is behind a push to keep a proposal to legalize alcohol sales statewide off the November ballot. The association has formed a group called “Let Local Communities Decide For Themselves.”

Attorney Betsy Murray, representing Let Local Communities Decide For Themselves, said the petitions were submitted in violation of state law. Citing Amendment 7 of the Arkansas Constitution, Murray said the deadline for statewide petitions to be submitted should have been July 4, not July 7, as was scheduled by Martin.

Amendment 7 says that “initiative petitions for statewide measures should be filed with the Secretary of State not less than four (4) months before the election in which they are to be voted upon.”

The general election is slated for Nov. 4, 2014. Murray said state law mandates that the petitions were turned in after what should have been a “specified deadline.”

A Secretary of State spokeswoman says it’s standard practice to roll the deadline to the following business day if the deadline falls on a holiday. She says the Secretary of State’s office is researching the matter in order to present the appropriate response. They said they are anticipating litigation and couldn’t comment any further about what their response will be.

The group pushing for expanded sales of alcohol, Let Arkansas Decide!, has been given permission to collect more signatures for its proposal under a 30-day “cure” period. It needs to submit more than 78,133 valid voter signatures to qualify for the ballot.

Give Arkansas A Raise Now, which is pushing to raise the state’s minimum wage to $8.50, is also collecting additional signatures after submitting its initial collection to the Secretary of State on July 7.

Regional business and civic leaders who responded to an informal survey by The City Wire do not share the pessimism exhibited in a recent Rasmussen Poll in which only 29% said America’s best days like ahead.

A closely watched Rasmussen poll recently reported that just 29% of likely voters surveyed believe the country’s best days lie ahead, down four percentage points from April and the lowest point during the eight-year history of the survey.

The question asked in the poll was: “When you think about our nation in the context of history, are America’s Best Days in the future or in the past?” The national telephone survey of 1,000 Likely Voters was conducted by Rasmussen Reports on July 7-8, 2014. The margin of sampling error for the survey is +/- 3 percentage points with a 95% level of confidence.

Results showed that 52% said the country’s best days are behind us, up from 48% in April. This ties October’s recent high and is one of the few times this figure has passed the 50% mark. Also, 18% said they are not sure.

Ed Clifford, president and CEO of the Jones Trust and the head of the Bentonville/Bella Vista Chamber of Commerce for more than 11 years, said it’s not about better days being ahead, but that simpler days are in the past.

“I think that much simpler days are behind us, and that our national leaders haven’t figured out how to operate effectively in this new, very complex environment, either nationally or internationally. Until they do, we’re at the very least going to tread water, and this leads to trouble as time goes on,” Clifford said.

“Fundamentally optimistic” is Kathy Deck, director of the Center for Business & Economic Research at the Walton College of Business at the University of Arkansas. She added a caveat that her optimism is continually evaluated by keeping an eye on “day-to-day realities.”
 
“My optimism is based on a long view. While it is clear that over the short term, we face what seem like intractable political problems, what is true is that we have the fundamental capability to make good decisions,” Deck explained in an e-mail note. “I think that the proliferation of information is both the reason behind our pessimism (negative messaging hits us at every turn) and the key to our future success (good information is the key to making the best of what we’ve got.)”

Rod Coleman, chairman and CEO of Fort Smith-based Benefit Bank, which also is active in Northwest Arkansas, is “very optimistic.”

“We are seeing great growth already in our business and see potential that we have not seen in the past 6 years. Particularly in NWA,” Coleman wrote, adding that Federal Reserve actions to increase interest rates would hurt the economy.

Also in the optimistic camp is Kelly Johnson, director of the Northwest Arkansas Regional Airport Authority,

“I am a bit optimistic. I believe we are going to continue for a while to see a downturn but I think our nation will rally; so no, I don’t believe our best has come and gone,” Johnson said.

Her optimism is in part based on the brains of the next generation.

“There is a lot of innovation that has yet to occur and there are a bunch of really smart young people out there who are committed to innovate or die!” Johnson noted.

On that theme, Greg Kaza, director of the Little Rock-based Arkansas Policy Foundation, had a simple response when asked if he was optimistic: “America will always be a beacon for entrepreneurs.”

The poll also found that 58% of the likely voters polled believe American society is “fair and decent,” and that those who immigrate to the country should adopt U.S. language, culture and heritage.