Consumers got a little relief in their wallets in recent months from a dip in gas prices and lower utility bills from the cooler-than-normal summer, but they didn’t spend that extra money eating out, according to the most recent restaurant indicator.

Softer customer traffic and a lack of optimism among restaurant operators resulted in a moderate decline in the most recent National Restaurant Association’s Restaurant Performance Index (RPI).

The RPI slipped nearly 1% to 101.0 compared with the RPI in August, which measures current trends as well as expectations of restaurant operators for the next six months. The Current Situation Index was 101.0 in September – down nearly 1% from August 2014 – and the Expectations Index fell 1.1% in September to 100.9.

The industry trade group found the expectations index dipped to its lowest level in 11 months in part because of rising food inflation and slower traffic. The group also remains unimpressed by the direction of the U.S. economy.

The biggest concern for restaurant operators is rapidly rising wholesale food prices.
Wholesale food inflation rose 5.1% in September its highest level in three years. That’s being driven by rapid increases in key ingredients such as butter, up 36% and eggs which are 20%, while beef is 16% higher.

WIth that, menu prices rose 2.1% on average in the month of September as operators try to pass along some of the inflationary costs they have felt in recent months.

NO SLOW DOWN IN NWA
The national reports about the industry have not deterred interest in new restaurant expansion in Benton and Washington counties. There has been a flurry of new permit inquiries made with the state health department in the past two months. Local operators have not slowed their restaurant expansion across Northwest Arkansas despite the weaker outlook. J.J.’s Grill recently opened a new location in Bella Vista, giving the local chain four locations in the region and one in Conway.

Moe’s Southwest Grill has requested permits from the Arkansas Department of Health for a new restaurant at 2600 Pleasant Crossing Drive in southwest Rogers.

A new restaurant with the name Dolivo has filed for a food service permit at 217 S. Main Street in Bentonville. This state health department permit was approved Oct. 2. Dana Davis, CEO of the Bentonville-Bella Vista Chamber of Commerce, said the city continues to welcome more unique eateries that are garnering national attention.

Deluxe Burger also received a new food service permit for a new eatery in Rogers at 5001 Pauline Whitaker Parker, Suite 130, near the Walmart AMP and Chuy’s, the Austin, Texas-based Tex-Mex restaurant that opened in January. Also coming soon to the area will be Pei Wei Asian Dinner whose permit was filed in August and awaits final review when the shopping center is completed. Pei Wei Asian is slated for 4895 W. Pauline Whitaker Parkway.

Four Corners Kitchen requested a permit for a new restaurant at 1214 N. Garland Ave. in Fayetteville. The permit status is open and sent to food service on Oct. 17, according to the state’s website.

Dickey’s BBQ obtained a provisional permit for a new restaurant at 2576 W. Sunset Ave. in Springdale. The Texas-based BBQ eatery already has four restaurants in the region — Lowell, Rogers, Fayetteville and Siloam Springs.

Springdale also recently welcomed a new McDonald’s at Elm Springs Road near the new Walmart Supercenter. This marks the 32nd Northwest Arkansas restaurant for Bill and Walter Mathews. Bill began his career as a burger flipper at McDonald’s in Fayetteville while attending the University of Arkansas. From there Mathews said he had the chance to buy a franchise in Springdale and he brought in his brother Walter for additional financial and operational support. The tandem has never looked back as they run largest restaurant franchise operation in the region.

The Fort Smith Board of Directors on Tuesday (Nov. 4) was presented with a balanced budget during its regular study session, but it does not yet include the recommended changes proposed by the Board of Directors at a series of meetings last month.

In his message to the Board at the beginning of the proposed budget book, City Administrator Ray Gosack said no cuts to citizen services were needed in the first draft of the proposed budget, despite an email to the contrary that he sent to the Board saying that it "may be time for us to consider a fundamental change in our General Fund services and the number of employees," Gosack wrote. "We have experienced this fiscal stress for at least 6 years, and there doesn’t appear to be an end in sight. The increasing frustration with the budget difficulties year after year may have to be solved by re-evaluating our ability to sustain current service and employment levels in the General Fund.”

Gosack's message introducing the budget further notes that sustaining current service levels in the city's budget was accomplished without raising taxes.

"All parts of the budget are balanced without any local tax or fee increases," he said.

The highlights from the budget include a general fund that is 4% smaller in Fiscal Year 2015 than the previous fiscal year, totaling $48 million. That total, Gosack said, was $2 million less than 2014's budget.

He also explained that all departments within city government were instructed to keep the same spending levels this year as last year.

"Due to financial constraints, all departments were asked to maintain their revised FY14 spending levels for FY15," he said. "Operating costs were trimmed to only basic levels of appropriations and capital was severely limited with the exception of the Fire and Parks programs funded by the 1/4% sales tax. The Police department will keep 5 patrol positions vacant for the year."

Gosack also said the city would add a net of 1.66 positions in the parks department, adding three full-time positions and 2.5 part-time positions to the parks department while the street and traffic control department will add 1.16 positions.

Included within the budget was also a comparison of ending fund balances in the general fund, which drops substantially from 2013's final ending fund balance of $10.07 million. The projected end fund balance for FY2015 is only $3.46 million. By law, the ending balance must be 7.5% of the budget. The city ended FY2011 with 17.8%, FY2012 with 19.7%, FY2013 with 12.2% and estimates it will end FY2014 with 11.7%.

Speaking to the Board of Directors during Tuesday's meeting, Gosack said the projections requested by city directors regarding the possible raising of franchise fees on city utilities and possibly adding fees to business licenses were not yet ready for Board review.

"In a couple of recent meetings you asked for some alternatives to provide resources for additional police and fire pension funding and for pay adjustments for city employees," he said. "The staff is currently working on those alternatives. We hope to have something to you either by the end of this week or the very early part of next week."

He added that the alternatives requested by the Board would be available prior to the next Thursday's (Nov. 13) budget meetings at the Fort Smith Police Department. The meeting is scheduled to begin at 6 p.m.

Not included in the budget are possible fee increases tied to the city's efforts to be in compliance with the federal Clean Water Act. The city has said it expects to be sued by the federal government after negotiations broke down last month.

"A sewer rate adjustment is expected so that the city will have the resources necessary to begin compliance with the federal consent decree for wet weather sanitary sewer system improvements," he wrote, having previously indicated that rates could double or triple.

U.S. Rep. Tom Cotton, the young Republican from Dardanelle, has unseated two-term U.S. Sen. Mark Pryor (D), in a race that was as expensive as it was nasty. Driving the cost and the negative tone of the race was that it was one of a handful of U.S. Senate races national Democrats needed to retain control of the U.S. Senate.

The election was called early in the night by most media outlets with Cotton having 60% of the vote to Pryor’s 35% in early box totals. Cotton, at 37 years of age, will be the youngest member of the U.S. Senate. It was estimated that more than $30 million was spent by the campaigns of both candidates and a wide range of political action groups advertising in Arkansas.

PRYOR, COTTON REACTIONS
Pryor said he called Cotton and congratulated him, and told the crowd at his watch party that Cotton would be in his prayers. In his short but emotional concession speech Pryor said he will miss the work.

“I’ll miss going to work each day working for the good people of Arkansas,” Pryor said during a concession speech that began shortly after 9 p.m.

Cotton addressed a much less subdued crowd.

“I am humbled to serve this state we all call home,” Cotton said in his opening remarks that followed Pryor’s concession speech. “The people of Arkansas tonight have made their choice ... to control our government rather than be controlled by it.”

Cotton said Arkansans “resoundingly” rejected what he said many believe are policies placing the country on the wrong track. He said the race was not about Mark Pryor or Tom Cotton, but about the direction of the country. Cotton said he would work to end or reverse the cynicism many have toward the federal government.

Cotton said he “received a gracious call from Mark Pryor,” with Cotton telling the audience that he thanked Pryor “and his family for their years of wonderful service to this state.”

In an emotional end to his speech, Cotton thanked his “battle buddies” still fighting overseas, his family, his wife and the voters of Arkansas.

RACE HISTORY
The race between the incumbent Pryor and first-term Congressman Cotton was tight for much of the campaign. Recent numbers by The Arkansas Poll and by the Talk Business & Politics-Hendrix College poll had Cotton pulling ahead of Pryor in the final few weeks of the election cycle. The Oct. 20 Talk Business poll had Cotton with an 8.5 point lead (margin of error 2.2%) and the Oct. 30 The Arkansas Poll had Cotton with a 13-point margin (margin of error 3.6%).

Going into election day, Real Clear Politics average of various polls on the race had Cotton with 48.2% support compared to Pryor’s 41.2%.

Former President and former Arkansas Gov. Bill Clinton made several stops around Arkansas – including stops in Fayetteville and Fort Smith –  hoping to pull out a victory for not only Pryor but other Arkansas Democrats on the ticket. Both parties talked about their “get out the vote” efforts, but the unpopularity of President Barack Obama and some of his policies – namely, the Affordable Care Act – was cited by many political watchers to be a big influence on voter behavior.

Real Clear Politics noted that Obama’s “awful” job rating among Arkansas’ undecided voters meant Pryor would “have a tough time converting them to his cause.”

Election results suggest that not enough independents were converted.

The tone of the debate was captured in the only live television debate between the two candidates, which was held Oct. 14 in Fayetteville.

Pryor used almost each response and rebuttal to tag Cotton as a tool for “out-of-state billionaires.” Pryor said the billionaires “have bought” a candidate who will cut important social programs like Medicare, Social Security and Food Stamps in order to deliver tax cuts to the billionaires.

“I listen to you and he listens to the billionaires,” Pryor said of Cotton.

Likewise, Cotton used almost each response and rebuttal to tag Pryor as being in lockstep with President Barack Obama, often beginning an answer with “Mark Pryor and Barack Obama … .” Cotton, who announced during the debate that he and his new wife are expecting a baby, said the policies of President Obama are on the Arkansas ballot.

“A vote for Mark Pryor is a vote for Barack Obama,” Cotton said, adding that Pryor is a “rubber stamp for Barack Obama’s weakness” in foreign affairs.

The Republican Party of Arkansas issued this statement early Tuesday night: “By electing Tom Cotton, Arkansans have made their voices heard that they will no longer stand idly by and allow a Senator from this great state to choose Barack Obama and his liberal policies over Arkansas. Tom Cotton will put Arkansas first, and will fight to get our Nation back on track. Starting by sending Senator Harry Reid to the back of the Senate Chamber!”

Former U.S. Rep. Asa Hutchinson, R-Fort Smith, is now Gov.-Elect Asa Hutchinson, R-Ark., following a bitter year-long battle for the state's top office.

Hutchinson defeated former U.S. Rep. Mike Ross, D-Prescott, in a race that is history making as Hutchinson will be the first Republican governor to preside over a Republican-controlled General Assembly since Reconstruction. Most media outlets called the race early for Hutchinson, with early box totals giving the Republican a 60%-38% lead over Ross.

The Fort Smith native and former 3rd District congressman faced North Little Rock businessman Curtis Coleman in the Republican primary, winning with more than 70% of the vote in May.

On the Democratic side, the race initially featured Attorney General Dustin McDaniel, who dropped out early on following an admission of an extramarital affair. The campaign then featured former Lt. Gov. Bill Halter and Ross, with Halter eventually dropping out before the primary, leaving Ross as the presumptive nominee.

With Hutchinson's win, the Republican party regains the governor's mansion which incumbent Democratic Gov. Mike Beebe has held since successfully running to replace Republican Gov. Mike Beebe in 2006. Hutchinson was the nominee for governor that year, but only garnered 41% to Beebe's 55.3% in that race.

HUTCHINSON, ROSS REMARKS
In conceding defeat, Ross said there was more that united Arkansans than divided, and said it was time to put the state first.

"I call upon all Arkansans, no matter your political party or philosophy, to set aside our political differences and put Arkansas first. Our democracy is built on compromise, finding common ground and doing what we think is best for our children and grandchildren. Our communities are stronger when we come together, put people before politics. And our future is brighter when we are all working with each other, not against one another."

During his victory speech, Hutchinson said that while his campaign was outraised by Ross, it was not outworked. He also noted how important the victory was to him, but said it is not simply about vanity.

"It obviously means a lot personally. It's a victory, I get the title of governor of Arkansas. But let me tell you, it's a lot more than something to me personally. This election is about a new day in Arkansas. It's about a new day of growing the economy and creating jobs. It's about making sure that we can have a competitive tax rate. It's a is a new day in Arkansas that we can have computer science in every high school. It's a new day in Arkansas that we can reduce the burden of regulations."

But for all the plans Hutchinson has as governor, he said it was incumbent upon he and the Republicans in the General Assembly to govern responsibly, the first time the Republican Party has controlled both the executive and legislative branches since Reconstruction.

"It's also a new responsibility for the Republican Party who's had a great victory tonight. We need to make sure that we earn the respect and support of the people of Arkansas by governing well, by working hard and acting honorably," he said. "We need to earn the respect of the people of Arkansas by reaching out to those that may not have supported us but to say that you're a part of this team and to make sure this is a new day in Arkansas not just for us, but for all Arkansans who want greater opportunity."

Hutchinson also said he had spoken with Beebe, who had pledged his cooperation for a seamless transition between administrations.

OTHER REACTIONS
In a statement Tuesday night (Nov. 4), Republican Party of Arkansas Chairman Doyle Webb congratulated Hutchinson on his win over Ross.

"We applaud Asa Hutchinson on being Arkansas’s next Governor. Asa has the experience to lead our State to create a better business environment and economy for Arkansas," Webb said. "The Asa Plan will improve the quality of education to the level our children deserve. Under Asa’s leadership I am confident that this great state will thrive, he is ready to hit the ground running and never look back!” 

The Republican Governor's Association was also quick to congratulate Hutchinson.

“The promise of a more competitive, prosperous Arkansas under a strong, principled leader is what drove Asa Hutchinson to a much-deserved victory in this race,” said RGA Chairman Chris Christie. “Hutchinson will make an excellent governor and work hard to make Arkansas prosperous. The Republican Governors Association is proud to congratulate Governor-elect Hutchinson on his victory.”

The RGA noted in a press release that it had spend $6.2 million on paid media, mail and an aggressive field program in order to elect Hutchinson to the post.

Polls in the closing days of the election spelled trouble for Democrats, with a Talk Business & Politics and Hendrix College poll showing Ross down 41% to Hutchinson's 49% during the poll's Oct. 15 and Oct. 16 dates. Undecided voters totaled only 5.5%, while Libertarian Frank Gilbert had 2.5% and Green Party candidate Joshua Drake had 2%.

Another poll released Thursday (Oct. 30), the week before the election, had Ross down 11 points to Hutchinson in the closing days of the race.

Even the star power of Arkansas' favorite native son, former President and Gov. Bill Clinton, could not sway voters to consider Ross in the final days of the race, with Clinton making stops in Fort Smith and Texarkana on Sunday (Nov. 2).

Arkansas' congressional delegation will now be all Republicans starting in January 2015 after the party swept state constitutional and federal offices Tuesday night (Nov. 4).

In the 4th District, State Rep. Bruce Westerman, R-Hot Springs, bested Democrat James Lee Witt by a vote of 52% to 44%, while Libertarian Ken Hamilton received 3% of the vote. (See list of statewide election results at the end of this story.)

In a statement, Witt spokesman Beau Bishop said, "The people of the 4th District have spoken. We're proud of the race that we've run. We ran on the issues and the election's over now and it's time for us to come together as a district and do what's best for the people of Arkansas."

He continued, "Our campaign has been about working together and doing things for the betterment of Arkansas and James Lee's not going to run from those principals and ideals at this point. He still believes in everyone deserves an opportunity for a hope and a dream. We can't do that if we're not all working together. That's what James Lee said to Rep.-Elect Westerman when he spoke to him."

Asked whether Witt was done with politics or may run again, Bishop said, "We hadn't gone that far. But I would say he's done, but we haven't talked about it."

Attempts to reach Westerman have been unsuccessful.

In the 2nd District, Republican French Hill is leading with 49% of the vote to former North Little Rock Mayor Patrick Henry Hays' 46%. Libertarian Debbie Standiford has 4%. Shortly after 11 p.m., Hill delivered an acceptance speech, saying that he would focus on cutting the size of government and returning the nation to “economic success for all of our citizens.”

With 17% of precincts counted, Womack won the 3rd District with 82% of the vote against Libertarian Brand Grant, who received 18% of the vote. Womack did not face a Democratic opponent.

With 36% of precincts reporting, Crawford had 64% of the vote to Democratic Heber Springs Mayor Jackie McPherson, who garnered only 32%. Libertarian Brian Willhite received 4% of the vote.

On ballot questions up for statewide vote, preliminary numbers show that Issue No. 1 and 5 passed, while Issue No. 4 failed. The results are based on 38% of the vote reported statewide.

ISSUE NO. 1
On the ballot question that would change administration of state government, voters passed the question by a vote of 60%-40%.

The question mandates review by the legislature of administrative rules in all Arkansas state agencies and approval of any changes to said rules.

The practice for years allowed the agencies to change rules with nothing more than a review of the legislature, but the House and Senate committees overseeing the rule changes have been unable to mandate changes to the rules or reject changes made by the agencies themselves.

ISSUE NO. 4
The other controversial issue on the ballot this year was the question of whether to turn all of Arkansas wet, therefore allowing alcohol sales statewide versus the patchwork wet-dry setup that has been in place across Arkansas since the end of Prohibition nearly 100 years ago.

The initiative to go all wet failed by a vote of 43% for to 57% against. Opponents of the legislation had said it would remove the local community's choice of whether or not to be a wet community.

Should it have passed passage, the 37 counties in Arkansas that are currently dry would have been able to host not just restaurants that want to serve, but also liquor stores and sales of alcohol in grocery stores.

ISSUE NO. 5
While not necessarily controversial, the final ballot question garnering a lot of attention in the races for U.S. Senate and governor was the question on whether or not to raise the state's minimum wage from the current race of $6.25 per hour to $8.50 by 2017.

The ballot question came the same year President Barack Obama has been advocating a race of the minimum wage to $10.10 federally. The rate has been matched by states such as Maryland in recent months.

In Arkansas, the ballot question passed by a vote of 66% for and 34% against.

With passage, the state of Arkansas would be above the current federal minimum wage of $7.50 per hour, though it remains to be seen if the federal rate would rise above the Arkansas rate of $8.50 by 2017.

Other races that have been called include attorney general, where Republican Leslie Ruledge garnered 52% of the vote to Democratic Rep. Nate Steel's 44%; lieutenant governor with U.S. Rep. Tim Griffin earning 57% of the vote to Democrat John Burkhalter's 40% and Libertarian Christopher Olson's 4%; and secretary of state, where incumbent Republican Mark Martin was re-elected with 60% to Democrat Susan Inman's 36% and Libertarian Jacob Holloway's 4%.

STATEWIDE RACES (30 of 30 counties reporting)
1ST CONGRESSIONAL DISTRICT
U.S. Rep. Rick Crawford (R): 63.55%
Mayor Jackie McPherson (D): 32.1%
Brian Willhite (Libertarian): 4.35%

2ND CONGRESSIONAL DISTRICT (6 of 7 counties reporting)
Patrick Hays (D): 45.48%
French Hill (R): 50.09%
Charles Neely (write in): 0.08%
Debbie Standiford (Libertarian): 4.36%

3RD CONGRESSIONAL DISTRICT (7 of 10 counties reporting)
U.S. Rep. Steve Womack (R): 81.47%
Grant Brand (Libertarian): 18.53%

4TH CONGRESSIONAL DISTRICT (25 of 33 counties reporting)
Ken Hamilton (Libertarian): 3.56%
Janis Percefull (write in): 0.08%
Rep. Bruce Westerman (R): 53.88%
James Witt (D): 42.47%

LT. GOVERNOR (64 of 75 counties reporting)
John Burkhalter (D): 38.82%
U.S. Rep. TIm Griffin (R): 57.06%
Christopher Olson (Libertarian): 4.13%

ATTORNEY GENERAL (64 of 75 counties reporting)
Aaron Cash (Libertarian): 5.08%
Leslie Rutledge (R): 51.62%
Rep. Nate Steel (D): 43.3%

SECRETARY OF STATE (64 of 75 counties reporting)
Secretary of State Mark Martin (R): 60.35%
Jacob Holloway (Libertarian): 4.25%
Susan Inman (D): 35.4%

STATE AUDITOR (64 of 75 counties reporting)
Regina Stewart Hampton (D): 37.59%
Rep. Andrea Lea (R): 57.06%
Brian Leach (Libertarian): 5.34%

STATE TREASURER (64 of 75 counties reporting)
Karen Garcia (D): 37.54%
Chris Hayes (Libertarian): 6.28%
Circuit Clerk Dennis Milligan (R): 56.18%

LAND COMMISSIONER (64 of 75 counties reporting)
Commissioner John Thurston (R): 57.02%
Elvis Presley (Libertarian): 6.06%
Mark Robertson (D): 36.92%

BALLOT ISSUES (64 of 75 counties reporting)
Issue No. 1 (Administrative rules change)
FOR: 59.34%
AGAINST: 40.66%

Issue No. 2 (Allowing more time to gather initiative signatures)
FOR: 53.46%
AGAINST: 46.54%

Issue No. 3 (Ethics rules changes; term limits extension)
FOR: 52.29%
AGAINST: 47.71%

Issue No. 4 (Allowing alcohol sales in all Arkansas counties)
FOR: 42.9%
AGAINST: 57.1%

Issue No. 5 (Act to increase Arkansas’ minimum wage)
FOR: 65.99%
AGAINST: 34.01%

While Arkansas Republicans were jubilant – and rightfully so – with Tuesday night’s election results, respondents to a call from The City Wire for post-election comments were more guarded and contemplative in their reactions.

Using social media, The City Wire asked people around the state to send us their comments about the election results. Most news outlets talk to the same handful of “experts” and we’re not wholly convinced they have a better handle on the outcome than many Arkansans. This effort was an experiment to shift the commentary from television talking heads to you.

Respondents were asked to not regurgitate political advertising blather on television ads or respond with talking points from the various political action groups who spent heavily on Arkansas candidates with both parties. Respondents were also asked to keep their responses to 100 words. Some did, some didn't.

“We saw enthusiasm from some of the responses we received and across social media. However, and even among some of the enthusiastic, there appeared a message of, ‘OK, you Republicans can win elections, but can you govern?’ That’s not a surprise considering the independent nature of Arkansans,” said Michael Tilley, editor of The City Wire. “The winning campaigns are certainly celebrating, but voters are like the homeowner who had to fire a general contractor halfway through the process. They are glad to have a new contractor, but they are eager to get the job back on track and will closely watch the new folks.”

This is what they, or maybe you, had to say.

• Cynthia Bailey, Fort Smith
With today's election, we will find that in a year we are still in the same place no matter who has been elected.

• Kay Atchison Brockwell, Jonesboro
The Republicans have won the government. Let's hope they don’t tear it up.

• Michelle Cernak, Crawford County
I can't vote for a mayor where I live nor can I vote for city directors where I do business. Hell, I didn't even get a sticker for voting. For me it's not about the sticker or the bonfire material. I get to remind those elected who they work for. As a mother, wife and business owner, it is my duty as a citizen to be involved in our communities that circle and aid in daily living for all no matter who is in office. I've noticed voting getting more "popular.” Lots of people helping people get informed to help them make a decision that's not just pushing a button and getting a sticker. Don't get your panties in a bunch if your person didn't win, and don't lose your spark leading up to the election. Get involved, speak up and do your part like you got the job.

• Ashleah Courtney, Little Rock
I’m surprised, but not surprised all at the same time. Arkansas is one of the poorest states in the nation, and yet residents continually vote against anything and everything that could make some sort of positive change in that. I’ve talked to people who have gone without insurance for years who are completely against any sort of healthcare reform. Yet they fail to realize that by being uninsured they are driving up healthcare costs for everyone. And that’s just one issue.

• Joel Culberson, Fort Smith
God has decided to bless us with Republicans. What did we do to deserve this?

• Mike Gilbert, Springdale
Some want opportunity and some want security. The challenge is giving the one who desires security his wishes without taking away the opportunity of the others. Some seek success and others seek security/protection. You cannot fault a person for seeking security or protection even if the security and protection is from the unknown. The issues in elections are not about principles anymore, they are all about power. Why would outside groups spend $30 million on attack ads in Arkansas if not for the goal of power? The power of opportunity exists for all who seek it.

• Matt Ketcham, Fort Smith
People get the government they deserve.

• Linda Burris Dare McBride, Fayetteville
With a GOP takeover of the U.S. Senate I worry about what happens if a Supreme Court Justice dies or can't finish their term because of sickness.

• Aric Mitchell, Fort Smith
I feel bittersweet tonight. I believe the country needs a third party desperately, but the Independent vote still isn’t viable, and Democrats have done so much damage to this country in the last 10 years (remember they had Congress for 2 under Bush) that electing a Republican Congress was the only option to roll some of that back. It’s my hope Republicans don’t take this as a win for their party but instead as a referendum on extremist politics, Left or Right, which the President has been entirely guilty of practicing these last six years. We also need to repeal or heavily revise Obamacare. That should be priority one.

• George Clay Mitchell, Van Buren
The taking of the Senate in 2014 may become the biggest political blunder for Republicans in the past 20 years. Now, they have to govern. If they govern from the middle, their vocal base will be angry. If they govern for their base, they're going to upset the rest of the country. End result, Republicans could lose majorities in both the House and Senate in 2016, as well as the presidency. It would be hard for them to recover as a national party.

• Sam Sicard, Fort Smith
In DC we got the divided government with one party controlling Congress I wanted, in Arkansas we lost the divided government I liked.

A former Fort Smith city director is returning to the Board in January and a local mayor is entering his third and final term following the general election Tuesday night (Nov. 4).

In the race for Fort Smith City Director At-Large Position 7, former City Director Don Hutchings claimed victory Tuesday with 59.32% of the vote to Parks and Recreation Commissioner Sherry Toliver's 40.6%. Hutchings will replace retiring City Director Philip Merry, who announced earlier this year that he would not seek a second term to the Board of Directors.

The candidates found common ground in a debate sponsored by the League of Women Voters in October, but there were differences between the two.

Regarding a change in government, the two expressed differences in how the city should move forward, with Hutchings advocating to keep the current city administrator-Board of Directors form of government while Toliver told The City Wire she would be in favor of a change to a Mayor-City Council form.

In conceding defeat, Toliver said she was proud of the campaign both candidates had run.

"Don was so gracious and kind to me in public and private," she said. "I appreciate that."

But even in her own graciousness toward Hutchings, Toliver expressed some disappointment in the results.

"I was really hoping and felt good about it and all the hard work we had done, but I knew I was up against a tough opponent in Don Hutchings. He had the name and face recognition. I am just so grateful to serve the city in this way and get my thoughts out there. I still think I have a place in the city for my thoughts to come to pass."

Hutchings, who is returning to the Board after leaving two years ago to focus on a capital campaign to build a new sanctuary at the church he pastors, was unavailable for comment Tuesday night.

FREEMAN WINS RE-ELECTION
In Van Buren, Mayor Bob Freeman faced off for the second time in four years with Alderman Max Blake in Freeman's bid for a third and final term as mayor and came out on top.

According to the Crawford County Clerk's office, Freeman won re-election with 52.31% of the vote, while Blake saw 47.69%.

Freeman said even with the tight numbers, he plans to enter the municipal complex tomorrow as mayor of all of Van Buren, not just his supporters.

"It was (contentious), but the campaign is the campaign. Now it's time to move on. I've had the privilege of being the mayor and serving the community for the last eight years. I appreciate the opportunity to continue being the mayor for the next four years, moving the community forward with all the citizens. But we've got projects coming up and more to come. I want to thank the community for their support and say it's time to move on and let's go."

Blake said he was proud of the campaign and the ideas he brought to the forefront and looked forward to working with all city leaders, Freeman included, to see those plans become a reality in the city he calls home.

"I was just trying to affect change and I think I've affected change each time I've run. I'm just trying to help the city of Van Buren. Obviously, Mr. Freeman had a stronger base than I did, but that's fine. The citizens have spoken and I'll help Mr. Freeman any way I can to movE the city forward."

ALMA, BARLING RESULTS
In Alma, it was a three way race between Keith Greene, Gary O'Perry and former Rep. Ed Thicksten that will go to a runoff after Greene won the most votes with 46.86%, while Thicksten received 42.76% and O'Perry came in last with 10.39%.

Barling voters also had to decide on whether to approve a new one cent sales tax that would bump the city's sales tax rate to 9.75%, from its rate of 8.75%. The rate would match the city of Fort Smith, but still be below the rates of Van Buren and Alma, which both sit at 10.25%. The tax, which would sunset in 10 years in 2024, was approved by a vote of 71.79% for and 28.21% against.

Barling City Administrator Mike Tanner said the sales tax would pay for street improvements, including "an overlay project, culverts, curbs, sidewalks, that type of thing."

The tax, Tanner said, is projected to raise between $250,000 and $300,000 per year, "depending on the city sales."

He said the figure does not include estimates from any sales associated with a new 70-store shopping center being built at Chaffee Crossing, though he said that could double or triple the collections once completed.

Other contested races of note locally included:
STATE REP. DISTRICT 80
Rep. Charlene Fite (R): 79%
Taylor Watkins (L): 21%

GREENWOOD MAYOR:
Mayor Doug Kinslow: 83.21%
Gary Campbell: 16.79%

SEBASTIAN COUNTY JUSTICE OF THE PEACE DISTRICT 7:
Justice of the Peace Jim Medley (R): 58.85%
Jim Perry (D): 41.15%

VAN BUREN ALDERMAN:
WARD 2, POSITION 2:
Scott Curtis: 44.9%
Darrol Sparkman: 55.1%

WARD 3, POSITION 2:
Adlerman Johnny Ragsdale: 39.92%
Alan Swaim: 60.08%

"An outdated system" delayed vote counts Tuesday night in Washington, while Benton County also saw delays. But after midnight, all candidates knew how they fared. Republicans swept the contested state legislative races in Northwest Arkansas.

Washington County's complete, unofficial election results were released at 2:48 a.m. Wednesday. "Glitches" in early vote ballots caused delays in their counting Tuesday night, said Peter Loris, a Washington County election commissioner, adding, "We were trying to overcome an outdated system." At 12:10 a.m. Wednesday, election officials finally released some results – they had all Election Day tallies and electronic early votes but had not cleared about 3,500 paper early votes, Loris said. Partial results of those 3,500, indicating final tallies for some races, were announced 45 minutes later. Remaining results were worked on through the early morning.

Democratic incumbent Washington County Judge Marilyn Edwards ended up defeating her Republican opponent Jeff Williams, the county assessor, by 909 votes, 27,141 to 26,232, 50.9% to 49.1%. Republican Mort Marshall lost about 2-to-1 against Democratic incumbent Sheriff Tim Helder, 17,131 to 36,165, or 32.1% to 67.9%.

Washington County has 114,901 registered voters. The ballots cast totaled 54,754, a 47.7% turnout. (See a list of Benton and Washington county election results at the end of this story.)

"I will continue to serve the people of Washington County with dignity and respect," Edwards said just after 1 a.m., noting her 45 years in public service. She said she spent 26 years as county clerk (after working several years in local government as an employee) then three two-year terms in the state House, she said. This will be her fourth two-year term as county judge. "I will tell you that this will be my last term."

A message requesting comment was left on Williams's phone.

Marshall wished Helder well in his new term.

"Lots of folks wanted me because they wanted to see some change," Marshall said. "But 67% wanted to keep Sheriff Helder so I'm going to have to respect that. I wish him well."

"It certainly was a taxing campaign in that you're trying to do that and trying to do your job," Helder said. "I'm grateful for our support and our great employees. I'm excited and very pleased. We're planning to continue our path. We made some significant changes early on [in the current term], and we'll continue on that path."

Benton County has 127,008 registered voters. Unofficially, 62,568 votes were cast, a 49.3% turnout, according to results released at 12:01.

LEGISLATIVE RACES
Republicans swept the four contested Arkansas House races in Northwest Arkansas, with Reps. Bob Ballinger and Jim Dotson easily winning re-election.

District 93
Rep. Jim Dotson (R): 70.52%
Leah Williams (D): 29.48%

District 94
Rebecca Petty (R): 57.4%
Grimsley Graham (D): 42.6%

District 96
Grant Hodges (R): 59.37%
Tom McClure (D): 35.55%
Michael Kalagias (Libertarian): 5.08%

District 97
Rep. Bob Ballinger (R): 58.04%
Charles Carter (D): 41.96%

WASHINGTON COUNTY
Following are complete but unofficial tallies as of late Tuesday of the main contested races. The spelling, any titles and name order is how candidates appeared on ballots.

Key municipal races included positions on the Fayetteville and Springdale city councils. Some races have more than two candidates. A relatively recent state law changed how runoff elections are determined for municipal races, Washington County Elections Coordinator Jennifer Price said Wednesday. The law was approved in 2011 and went into effect for elections beginning in 2012.

As before, in city races with three or more candidates, a winner is declared who has more than 50% of the vote. In addition, Price said, if the top candidate has more than 40% and the next-highest candidate trails by more than 20%, no runoff is needed. The runoff election date is Tuesday, Nov. 25. Early voting begins Nov. 18.

Fayetteville City Council Ward 1, Position 1
Adella Gray: 1,661, 36.7%
Paul Phaneuf: 1,759, 38.8
Sonia Davis Gutierrez: 1,110, 24.5
A runoff election will be set between Gray and Phaneuf.

Fayetteville City Council Ward 2, Position 1
Robert Patton: 982, 27.5%
Joshua Crawford: 828, 23.2
Mark A. Kinion: 1,759, 49.3
Kinion was declared the winner.

Fayetteville City Council Ward 4, Position 1
D'Andre L. Jones: 672, 14.3%
Craig M. Honchell: 376, 8.0
Robert Williams: 240, 5.1
John S. LaTour: 2,006, 42.6
Phillip McKnight: 447, 9.5
Ray M. Boudreaux: 963, 20.5
LaTour was declared the winner.

Springdale Alderman Ward 1, Position 1 (combining Washington and Benton county precincts)
Bob Caudle: 4,048, 37.3%
Jim Reed: 6,805, 62.7

Springdale Alderman Ward 3, Position 1 (combining Washington and Benton county precincts)
Rick Culver: 5,995, 54.6%
Councilman Bradley Bruns: 4,992, 45.4

The Washington County Quorum Court had these seats contested. The first number is votes and the second percentage. Due to rounding, percentages may not add to 100 %.

Justice of the Peace District 4
Yessie Hernandez, D: 314, 33.2%
Wm. Bill Ussery, R: 633, 66.8

Justice of the Peace District 7
Kendra Boyle, D: 1,596: 37.2%
Justice of the Peace Rick Cochran, R: 2,692, 62.8

Justice of the Peace District 8
Armistead C. Freeman III, R: 1,488, 44.7%
Daniel William Balls, D: 1,844, 55.3

Justice of the Peace District 10
James Miller, D: 1,334, 41.7%
Robert Dennis, R: 1,869, 58.4

Justice of the Peace District 13
Joel Maxwell, R:  2,423, 64.4%
Rhonda Hulse, D: 1,341, 35.6

Justice of the Peace District 14
Jim Renfrow, R: 1,963, 46.6%
Justice of the Peace Ann Harbison, D: 2,252, 53.43

BENTON COUNTY
In Benton County, key races included positions on the Bentonville and Rogers city councils.

Bentonville Alderman Ward 1, Position 1
Stephanie Orman: 4,648, 56.5%
Michael Williams: 1,518, 18.4
Jon Cavness: 2,065, 25.1
Because Orman won more than 50 % of the general election vote, a runoff is not necessary.

Bentonville Alderman Ward 1, Position 2
John A. Skaggs: 4,776, 58.3%
Chad Yoes: 3,422, 41.7

Bentonville Alderman Ward 2, Position 1
Tim Robinson: 4,504, 55.1%
Alderman Roger Thomas: 3,668, 44.9

Bentonville Alderman Ward 2, Position 2
Alderman Chris W. Sooter: 5,618, 67.8%
Shane Miller: 2,672, 32.2%

Bentonville Alderman Ward 3, Position 1
Craig Soos: 3,842, 47.1%
Alderman James L. Smith: 4,318, 52.9

Bentonville Alderman Ward 3, Position 2
Alderman W.P. "Bill" Burckart: 4,088, 48.8%
Bryan Bennett: 1,268, 15.1
Kristy Reed: 3,017, 36.0
Burckart was declared the winner.

Bentonville Alderman Ward 4, Position 1
Octavio Sanchez: 5,013, 60.5%
Burton B Head: 3,270, 39.5

Bentonville Alderman Ward 4, Position 2
Jim Webb: 3,868, 47.5%
Alderman Jim Grider: 2,965, 36.4
Anthony Ciabattari: 1,314, 16.1
Once the Nov. 4 results are certified, a runoff election will be set between Webb and Grider.

Rogers Alderman Ward 3, Position 1
Alderman W. Clay Kendall: 5,662, 55.9%
Keith Jackson: 4,470, 44.1

Rogers Alderman Ward 4, Position 1
Antonio Christopher Covington: 708, 6.7%
Carrie Perrien Smith: 3,600, 34.1
Carlos Chicas: 2,778, 26.3
Sam Jeffery: 3,462, 32.8
Once the Nov. 4 results are certified, a runoff election will be set between Perrien Smith and Jeffery.

First-time homebuyers are the catalyst for the rest of the housing market but this important demographic is shrinking nationwide according to a new report from the National Association of Realtors. It’s also shrinking in Northwest Arkansas.

First time buyers account for one-third of home purchases today, the lowest level since 1987, according to NAR Chief Economist Lawrence Yun.

“It's not just not as easy as it used to be for young adults to purchase a home,” Yun noted in the release.

He said rising rents and repaying student loan debt makes saving for a down payment more difficult for Millennials who have also experienced limited job prospects amid a slow recovering economy.

When factoring in rising home prices, higher mortgage insurance premiums and tighter credit, Yun said the result is fewer homes being sold to first time buyers. This missing demographic keeps others from being able to sell their homes and move up to a larger property as real estate is one industry with a trickle-up effect.

REGULATORY SQUEEZE
J.P. Sexton, mortgage banker at Centennial Bank in Fayetteville, said there is squeeze on first-time homebuyers and even veteran buyers seeking to refinance. It’s something he attributes to hyper regulation by the federal government. Sexton said there are plenty of downpayment assistance programs and ways to help buyers secure those funds, but the longer laundry list of criteria that must be met is burdensome and in many cases is not relevant to a person’s ability to pay.

The prime example Sexton shared is that of former Fed Chairman Ben Bernanke who recently sought to refinance his own home and was declined because of unstable income, since leaving his job. Sexton said it doesn’t matter that he’s got assets to cover the loan and in one speaking engagement can earn enough for a year’s worth of payments, the tighter rules kicked him out.

Sexton said the regulatory tightening has been increasing since 2008, and while buyers may initially hear they have been approved, when the underwriter gets through scrutinizing the bank statements, income tax returns, appraisals and other ancillary documents a loan offer can be snuffed out.

“I pity the buyer who has a successful garage sale and deposits $500 or $1,000 cash into their bank account and can’t prove where it came from. I have had borrowers hang up on me when I told them their loan was ultimately denied because of things like that,” Sexton said.

He said there is still a growing number of first-time buyers in this local market, but the average age is trending higher as many are waiting longer to buy.

Sexton said the majority of local market mortgage loans now require 5% down and are Fannie Mae backed. He said first-time buyers can pay 3.5% down with an FHA loan, guaranteed by the federal government. Both of these scenarios require private mortgage insurance which raises the monthly payment.

“A few years ago the majority of local mortgages were FHA, but today it’s almost always cheaper to use a conventional loan with 5% down,” Sexton said. “The reality is that some buyers just aren’t financially ready. We work with them too, so they can reach that goal if that’s their desire.”

REALTYTRAC REPORT
Irvine, Calif.,-based RealtyTrac looked at 512 U.S. counties with a combined population of 235 million and found that home affordability is often a hurdle for first time buyers.

To that point, Mel Watts, director for the Federal Housing Finance Agency, has talked recently about a need to “increase access for creditworthy but lower-wealth borrowers.” 

This could be accomplished lower down payments for performing loans sold to Fannie Mae and Freddie Mac, which now require a 20% down payment to escape paying monthly mortgage insurance premiums. The lowest downpayment rate today for Fannie Mae is 5% but requires added mortgage insurance.

“While lower down payments may help pave a quicker path to homeownership for some prospective homebuyers, a bigger obstacle to homeownership is the additional non-mortgage debt many borrowers bring to the table,” said Daren Blomquist, vice president at RealtyTrac. “For borrowers without additional debt, monthly house payments are affordable in more than 90% of U.S. housing markets — whether they make a 20% or 3% down payment. But for borrowers with the additional debt burden of student loans and car payments, monthly house payments are affordable in less than half of U.S. housing markets with a 3% down payment.”

That said, lower down payment requirements do provide a lift over one major hurdle to homeownership. Blomquist notes that it would take an average of 12.5 years to save enough money for a 20% down payment at the current savings rate of 5.6%, reported by the Federal Reserve Bank of St. Louis.

LOCAL AFFORDABILITY 
In Benton County, consumer households earning the median income of $52,891 would need to save for 9.2 years to make a 20% down payment on the median home priced at $136,000. For down payments of 10%, it would take 4.6 years for consumers to save enough money and at 3% down the time for saving is reduced to 1.7 years, according to RealtyTrac.

In Washington County, the savings time required for median income households ($41,716) to purchase a home at the median price of $180,000, is 15.4 years when making a 20% down payment. That is reduced to 7.7 years for a 10% down payment and 2.3 years for a 3% down payment on the median priced home.

Blomquist said both of these local markets are deemed affordable, even at the higher 20% down payment requirement as long as the borrower is not also carrying other debt such as new car loan or student loans.

The median monthly house payments in Benton County are $690, before taxes and insurance. In Washington County, the median house payment is $913, according to RealtyTrac.

Blomquist said home buyers with no debt could earn as little as $19,244 annually and qualify for a home loan in Benton County provided they have the down payment. In Washington County, given the higher home prices, the minimum income to cover the median payment is $25,470.

When factoring in the average new car loan and student loan debt, Blomquist said the income required to qualify for the median payment in Benton County rises to $41,347. In Washington County the income needed to cover the $913 payment would be $47,573.

Blomquist said the median incomes are high enough in Benton County to support the added debt levels and therefore this market is deemed affordable when other debt is held by household.

It’s a different story in Washington County. The median household income of $41,726 is not enough to support a $913 house payment and the average new car loan and student debt levels. There is a $5,846 deficit in this scenario.

BUYER PROFILE 
The National Association of Realtors reports the median age of first-time buyers is 31, and their median income is $68,300. Their typical purchase is a 1,570-square foot home costing $169,000. The typical repeat buyer, by contrast, was 53, with an income of $95,000. Repeat buyers buy bigger and more expensive homes.

Home sellers are getting older at 54 years on average versus age 46 years in 2009. The typical seller has been in the house for 10 years, which is a new high. One reason noted for the older seller is that many of the Generation X homeowners were forced out of homeownership by foreclosures and short sales during the market bust between 2006 and 2009. The longer time spent in a home is linked to plummeting home values between 2007 and 2011, which holds many homeowners at bay as they try and recover lost equity. 

Yun said better home values this year have allowed some homeowners to sell after waiting years for that opportunity. 

“But if the share of first-time homebuyers continues to shrink, many homeowners who would like to move up to a more expensive house may find it harder to sell their current home,” Yun said.

Overall home ownership rates dipped to 64.4% at the end of the third quarter, lower than 65.3% reported a year ago and trending down this entire year, according to an Oct. 28 U.S. Census report.

First-time homebuyers are the catalyst for the rest of the housing market but this important demographic is shrinking nationwide according to a new report from the National Association of Realtors.

First time buyers account for one-third of home purchases today, the lowest level since 1987, according to NAR Chief Economist Lawrence Yun.

“It's not just not as easy as it used to be for young adults to purchase a home,” Yun noted in the release.

He said rising rents and repaying student loan debt makes saving for a down payment more difficult for Millennials who have also experienced limited job prospects amid a slow recovering economy.

When factoring in rising home prices, higher mortgage insurance premiums and tighter credit, Yun said the result is fewer homes being sold to first time buyers. This missing demographic keeps others from being able to sell their homes and move up to a larger property as real estate is one industry with a trickle-up effect.

REGULATORY SQUEEZE
J.P. Sexton, mortgage banker at Centennial Bank in Fayetteville, said there is squeeze on first-time homebuyers and even veteran buyers seeking to refinance. It’s something he attributes to hyper regulation by the federal government. Sexton said there are plenty of downpayment assistance programs and ways to help buyers secure those funds, but the longer laundry list of criteria that must be met is burdensome and in many cases is not relevant to a person’s ability to pay.

The prime example Sexton shared is that of former Fed Chairman Ben Bernanke who recently sought to refinance his own home and was declined because of unstable income, since leaving his job. Sexton said it doesn’t matter that he’s got assets to cover the loan and in one speaking engagement can earn enough for a year’s worth of payments, the tighter rules kicked him out.

Sexton said the regulatory tightening has been increasing since 2008, and while buyers may initially hear they have been approved, when the underwriter gets through scrutinizing the bank statements, income tax returns, appraisals and other ancillary documents a loan offer can be snuffed out.

“I pity the buyer who has a successful garage sale and deposits $500 or $1,000 cash into their bank account and can’t prove where it came from. I have had borrowers hang up on me when I told them their loan was ultimately denied because of things like that,” Sexton said.

He said there is still a growing number of first-time buyers in this local market, but the average age is trending higher as many are waiting longer to buy.

Sexton said the majority of local market mortgage loans now require 5% down and are Fannie Mae backed. He said first-time buyers can pay 3.5% down with an FHA loan, guaranteed by the federal government. Both of these scenarios require private mortgage insurance which raises the monthly payment.

“A few years ago the majority of local mortgages were FHA, but today it’s almost always cheaper to use a conventional loan with 5% down,” Sexton said. “The reality is that some buyers just aren’t financially ready. We work with them too, so they can reach that goal if that’s their desire.”

REALTYTRAC REPORT
Irvine, Calif.,-based RealtyTrac looked at 512 U.S. counties with a combined population of 235 million and found that home affordability is often a hurdle for first time buyers.

To that point, Mel Watts, director for the Federal Housing Finance Agency, has talked recently about a need to “increase access for creditworthy but lower-wealth borrowers.” 

This could be accomplished lower down payments for performing loans sold to Fannie Mae and Freddie Mac, which now require a 20% down payment to escape paying monthly mortgage insurance premiums. The lowest downpayment rate today for Fannie Mae is 5% but requires added mortgage insurance.

“While lower down payments may help pave a quicker path to homeownership for some prospective homebuyers, a bigger obstacle to homeownership is the additional non-mortgage debt many borrowers bring to the table,” said Daren Blomquist, vice president at RealtyTrac. “For borrowers without additional debt, monthly house payments are affordable in more than 90% of U.S. housing markets — whether they make a 20% or 3% down payment. But for borrowers with the additional debt burden of student loans and car payments, monthly house payments are affordable in less than half of U.S. housing markets with a 3% down payment.”

That said, lower down payment requirements do provide a lift over one major hurdle to homeownership. Blomquist notes that it would take an average of 12.5 years to save enough money for a 20% down payment at the current savings rate of 5.6%, reported by the Federal Reserve Bank of St. Louis.

BUYER PROFILE 
The National Association of Realtors reports the median age of first-time buyers is 31, and their median income is $68,300. Their typical purchase is a 1,570-square foot home costing $169,000. The typical repeat buyer, by contrast, was 53, with an income of $95,000. Repeat buyers buy bigger and more expensive homes.

Home sellers are getting older at 54 years on average versus age 46 years in 2009. The typical seller has been in the house for 10 years, which is a new high. One reason noted for the older seller is that many of the Generation X homeowners were forced out of homeownership by foreclosures and short sales during the market bust between 2006 and 2009. The longer time spent in a home is linked to plummeting home values between 2007 and 2011, which holds many homeowners at bay as they try and recover lost equity. 

Yun said better home values this year have allowed some homeowners to sell after waiting years for that opportunity. 

“But if the share of first-time homebuyers continues to shrink, many homeowners who would like to move up to a more expensive house may find it harder to sell their current home,” Yun said.

Overall home ownership rates dipped to 64.4% at the end of the third quarter, lower than 65.3% reported a year ago and trending down this entire year, according to an Oct. 28 U.S. Census report.

Combined building permits for the cities of Fort Smith, Greenwood, and Van Buren were $17.886 million for the month of October, an increase of 22.39% over the same month last year when only $14.614 million in building permits were issued.

Permits were highest in Fort Smith, where a $5.1 million building permit was issued for a 40 bed expansion that will add 25 jobs at Valley Behavioral on the far east side of the city. Another sizable permit was for renovations at Immaculate Conception Church, where a permit valuing more than $1.7 million was issued.

Ana Garcia with IC said the total capital campaign at the church is $3.2 million, with $2.9 million pledged by more than 600 donors.

In all, $15.629 million in building permits were issued in the city of Fort Smith during October.

For the first 10 months of 2014, the three cities issued permits totaling $176.722 million, down compared to $190.102 million during the same period in 2013. The decline represents a 7.04% decline year over year. Even though it was a decline from 2013, the figure is a 44.35% increase from 2012's total of $122.43 million during the same 10-month period. From the same period in 2011, the cumulative total represents a decline of 2.56% from $181.365 million.

Fort Smith had the largest portion of the 10-month total, with $152.263 million in permits issued, a 9.46% decrease from 2013's 10-month total of $168.174 million. Van Buren came in second with $17.125 million, a 12.48% increase from the previous year's 10-month total of $15.224 million. Greenwood this year has issued a total of $7.335 million in permits, a 9.41% increase from the 10-month total in 2013 of $6.704 million.

FORT SMITH
The city of Fort Smith issued 202 permits worth $15.629 million, a 22.3% increase from October 2013's permits of $12.779 million on 161 projects.

Commercial projects totaled $10.523 million on 33 permits, while 115 permits were issued for single family residential totaling $2.723 million.

GREENWOOD
Permits in Greenwood in October were up 375.77% over the same month last year, with $1.536 million in permits issued in October 2014 compared to only $322,860 during the same month last year.

Driving permits in the city were four new residential permits totaling $1.459 million. Other permits issued in the city include a $60,000 accessory building, $13,440 for a residential addition and $4,000 for a residential repair or remodel.

VAN BUREN
Van Buren had the worst month of the three cities, registering a 52.32% decline in October on $721,000 in permits issued. October 2013 saw permits issued totaling $1.512 million.

Driving last October's numbers was new home construction, with 22 permits issued totaling $1.478 million in value.

Permits issued in the city last month included four residential building permits totaling $288,000 and three commercial building permits valued at $433,000.

The total for last month is the second straight year that the city has seen a decline in the month of October, with the city down 24.5% from October 2012's total permitted value of $955,000.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

With a sweep of all federal offices, statewide offices including the governor's office and a larger majority in the General Assembly going into the 90th legislative session, Wednesday (Nov. 5) is truly a new and historic day for Republicans. But with Republicans not reaching critical thresholds in the House and Senate, key pieces of legislation will still require the support of at least some Democrats.

Sen. Jake Files, R-Fort Smith, said with the growth to 64 Republicans in the House (out of 100) and 24 seats in the Senate (out of 35) along with each constitutional office was a "clear message" from voters.

"It was obviously a huge day and night for Republicans in Arkansas," he said. "I think the citizens and voters sent a clear message that they were interested in us leading. Now the impetus is on us to govern. There's a difference between campaign and governing. My hope is that we govern as statesmen, not Republican or Democrat."

Already Gov.-Elect Asa Hutchinson, R-Ark., has announced that Sen. Michael Lamoureux, R-Russellville, would serve as his chief-of-staff and the director of transition. The Pro Tem of the State Senate, he served in the House from 2003-2009 and has been in the Senate since that time.

"Not only does Michael bring an ample amount of institutional knowledge of the state’s legislature, having served in both chambers in leadership positions, but he is well respected by his colleagues on both sides of the aisle," Hutchinson said. "My six-point plan to grow our economy and create jobs in our state starts by lowering taxes for Arkansas’ middle class, and I believe Michael has the qualities and experience to help accomplish my goals as Governor.”

Files said Lamoureux's appointment to the governor-elect's staff was a way of ensuring that the governor's proposals from the nearly year long campaign become law.

"We'll start seeing things come together, but there'll be no mad rush to pass legislation in a quick manner. This will mean more coordination between the governor's office and the House and Senate leadership to get things done," he said, adding that it would be hard to determine how quickly Lamoureux could whip votes for the governor-elect's legislative priorities.

Sen. Uvalde Lindsey, D-Fayetteville, noted that while the Republicans will have a majority, it'll still be short of the three-fourths majority needed to pass appropriations and short of the two-thirds majority needed for other parliamentary actions.

Even so, Lindsey said Lamoureux's appointment could be a way to bridge the gap between parties as he is well respected on both sides of the aisle.

"He will do a great job to serve Asa as chief of staff. He did a great job as President Pro Tem in the 89th (Legislative Session). Quite frankly, I'm a little sad to lose him as a colleague in the Senate but he will serve the governor well. He has built and continues to build trust with all members of the Senate and if you trust somebody and value their judgment and word, that's always a valuable asset no matter where you are in life and what you do. Michael takes that attribute and that criteria to the corner office," Lindsey said.

The one hiccup that could arise in General Assembly, according to Democratic Rep. Greg Leding of Fayetteville, is what he asserted at two factions of the Republican Party.

"I think obviously the Republican legislators will find more opportunities to partner with a Republican executive branch, but I don't think the Republican caucus is unified. I think you see three parties in the legislature. I think they're evenly split at the house level — Democratic Party, Republican Party and the far-right party," Leding, the former House Minority Leader, said.

"Obviously, most of the time Republicans might manage to come together, but I don't think they'll always manage to be on the same page."

Rep. Justin Harris, a West Fork Republican whose sprawling district stretches through much of rural Crawford and Washington Counties, disagrees with Leding's analysis and said Hutchinson is likely to see a unified front even on issues like the Private Option that have been contentious between conservative Republicans and the party's more moderate leadership from the last legislative session.

"I think (Leding is) wrong, I really do. I think he's dead wrong," he said, adding that he believed dissatisfaction with the way national politics are run in Washington trickled into the overwhelming wins by Republicans on Tuesday (Nov. 4).

But he said issues like the Private Option – Arkansas’ implementation of the federal Affordable Care Act – would not cause Republicans to lose focus on governing and giving citizens a taste of something different than Washington-style gridlock.

"We need to look at what we're going to do (with the Private Option). But I think you'll see a united Republican front and I don't think you'll see a split party. so I disagree with that."

Files said he believed Democrats would still have a voice in the process, even if it is controlled by his Republican colleagues. He expects Lamoureux to be an effective extension of the governor's office, making sure all sides are heard.

"I like to think that most of the people down there are relational people wanting to build consensus and for me, it's the right thing to do. I've been in the House with 24 (Republican) members. So you're selective as to what is opposed and what is stood up to."

Lindsey echoed those sentiments and added that he expected the governor's office to work with Democrats and Republicans in good faith to accomplish the best for Arkansans.

"I know Michael will build a strong position of friendship and trust. He already has that with the president designate (Jonathan) Dismang. They're good friends. And I know Sen. Lamoureux is good friends with the minority leaders (on both sides) and with all of us. He will do a good job to help build the relationship (between branches of government)."

Officials with the city of Fort Smith and the office of Arkansas Attorney General are expected on Thursday (Nov. 6) to renew talks with federal officials in Dallas about the city’s efforts to respond to alleged violations of the federal Clean Water Act.

It was announced in early October that negotiations had broken down between the city and the Environmental Protection Agency and the United States Department of Justice. Fort Smith Attorney Jerry Canfield said during a special meeting Oct. 2 notifying the Fort Smith Board of impending legal action that he expected a lawsuit to be filed as soon as Oct. 3. The Feds never filed a lawsuit.

Since1993, the city has invested more than $201.2 million improving the city's wet weather system. The city of Fort Smith has invested $201.2 million since 1993 on wet weather sewer improvements and another $150 million or more could be poured into improvements before the city atones for violations of the federal Clean Water Act – bringing the grand total for compliance with the law to $351.2 million.

Federal officials have said the city is not addressing the problem with the right priorities and/or enough money. The office of Fort Smith City Administrator Ray Gosack would not comment on the meeting, and instead referred comment to the office of Attorney General Dustin McDaniel.

Aaron Sadler, spokesman for AG McDaniel, issued this statement: “I requested that the parties to come together one last time to attempt to avoid costly litigation against Fort Smith. I will do everything I can to assist the parties, but ultimately this is a dispute between the city and the EPA. I hope that the city recognizes this is its last chance to come to terms with the federal government and prevent a lawsuit.”

When asked if McDaniel would attend the meeting in Dallas, Sadler said the office would not comment on who or how many from the AGs office would be at the meeting.

Fort Smith City Director Keith Lau said the city did inform the Board that another round of negotiations would take place between the city and EPA. He said it was his understanding that McDaniel’s pushed for the meeting.

“I’ve heard that Dustin (did not sign off on the authorization on the lawsuit) and encouraged the DOJ to resume negotiations,” Lau said. “I think Dustin McDaniel deserves kudos for helping us stave off a lawsuit and getting us back into negotiations.”

Lau was not sure why the public was not notified of the meeting, and said he is not sure of the status of the meeting.

“I really don’t know if negotiations are close or are far apart. ... I haven’t been told if this is a last ditch effort,” Lau said. “But am I positive that it will change the outcome? No.”

When asked about the meeting, Fort Smith City Administrator Ray Gosack said the city has communicated with the Feds through the office of Attorney General McDaniel

Gosack has said the city has made significant progress toward compliance, eliminating four of five overflow problems in the city since 2007 and said in spite of the Justice Department's planned lawsuit, the city would continue with projects aimed at bringing the city into compliance with federal law.

As crude oil prices fall into bear market territory, industry analysts are forecasting that pump prices in Arkansas and the rest of the U.S. may remain relatively low this winter and could drop another 5 to 15 cents per gallon before Thanksgiving Day as gas stations catch up with the steep declines in the wholesale market.

The lower gas prices could also prompt consumers to take the lock off their pocketbooks just in time for the holiday shopping season, Wall Street analysts say. In a recent research note to investors, Morgan Stanley’s senior U.S. economist Ellen Zentner estimated that lower retail gasoline prices added about 0.2 percentage points to annualized growth in real consumer spending.

“That chill in the air reminds us that the holiday shopping season is near and, compared with one year ago, households have more spending potential,” Zentner wrote in the Wall Street investment firm’s November bulletin. “On balance, we find that households have roughly $129 billion in additional real discretionary income going into the fourth quarter — a 4.3% gain compared with the same period last year — that has been driven primarily by gains in aggregate wages and salaries.”

Zentner added, “Moreover, nominal income will be boosted by as much as an additional $40 billion year over should lower gas prices continue.”

And as consumers open their wallets, AAA officials are hoping that more affordable gas prices may also induce more travelers to take a winter vacation or trip to grandma’s this holiday season.

“It is too early to say whether more people will travel for the holidays, but lower gas prices should give consumers more money to spend on dining, shopping and lodging during their trips,” the AAA said in its monthly gas price report.

CHEAPER FUEL IN ARKANSAS
Nationwide, the U.S. average price for regular gasoline fell 10 cents to $2.95 per gallon as of Nov. 5, 2014, 31 cents lower than a year ago, according to the U.S. Energy Information Administration. This week’s price is the first U.S. average price below the $3.00-per-gallon mark since Dec. 20, 2010.

AAA officials said national pump prices usually drop during the autumn season due to decreasing demand and the cost savings associated with producing winter-blend gasoline. However global oil prices have declined more than anticipated, as supply has outpaced demand, contributing to even greater savings at the pump for drivers.

“Barring an unexpected market-moving development this winter, motorists can expect to pay retail prices that are relatively low, and could see the price continue to tick downward even a little further as gasoline stations adjust to falling oil prices in the global market,” the AAA said.

Arkansas has the eighth lowest pump prices in the nation when compared to all 50 states, averaging $2.80 per gallon for regular unleaded, according to AAA’s daily fuel gauge. That price is 15 cents below today’s national average. Pump prices in the state’s metropolitan areas range from a low of $2.74 per gallon at the Texarkana state line to a dime higher in the Fort Smith area. Motorists in the Fayetteville-Springdale-Rogers area and the Little Rock-North Little Rock and Pine Bluff markets are all paying an average of about $2.80 a gallon to fill up their tanks.

Drivers choosing to fill up their tanks with a higher-grade of gasoline should expect to pay an average premium of $3.19 a gallon across the state. Big rig drivers and other diesel fuel users will see pump prices at about $3.48 a gallon, down a penny from only a week ago.

WINTER FUEL PRICES
Meanwhile, not only will Arkansas and U.S. consumers get a reprieve from high prices at the pump this winter, costs for residential heating fuels are also declining in all categories, EIA data shows.

After the unusually cold winter of 2013-14, U.S. households can expect lower heating expenditures this winter compared with last winter, the EIA said in its recent short-term energy and winter fuels outlook. On average, household expenditures for homes heating primarily with natural gas will total $649 this winter, a $31 decline from last winter’s average.

Homes heating primarily with electric heat are expected to spend $938, or $17 less. Homes using heating oil or propane, a staple fuel in Arkansas’ rural areas, have higher expenditures on average ($1,724 and $1,992, respectively) than homes using natural gas and electricity, but still lower ($652 less and $362 less, respectively) compared to last year.

Also, the latest forecast from the National Oceanic and Atmospheric Administration (NOAA) said temperatures are expected to be warmer than last winter. The extreme weather patterns last winter elevated demand for all heating fuels led to a drawdown of U.S. energy supplies, putting upward pressure on heating prices. Because weather patterns present great uncertainty to winter energy forecasts, EIA’s projections include a “10% colder and 10% warmer scenario.”

The EIA’s forecast and pressure on this winter’s natural gas prices is likely to be downward compared to last winter, the Natural Gas Supply Association (NGSA) said in its recent annual winter outlook report.

“When NGSA weighed all the different pressure points, the picture that emerged for the upcoming winter is one of remarkable growth in supply and steady underlying growth in demand that will be moderated by the forecast for a warmer winter than last year’s,” said NSGA Chairman Greg Vesey. “The abundant supply of natural gas is great news for consumers. When all key supply and demand factors are combined, we anticipate downward pressure on prices compared to last winter.”

As of Oct. 20, residential heating oil prices averaged $3.48 per gallon, almost 5 cents per gallon lower than last week, and 38 cents less than last year’s price of $3.86. Wholesale heating oil prices averaged nearly $2.65 per gallon, 2 cents per gallon lower than last week and nearly 46 cents lower when compared to the same time last year.

Residential propane prices decreased by less than one cent last week to $2.37 per gallon, half a cent less than the price at the same time last year. Wholesale propane prices averaged nearly $1.08 per gallon, 4 cents lower than last week’s price and 20 cents per gallon lower than a year earlier.

Still, natural gas prices have rallied from last week’s 52-week low. At the end of Wednesday’s session, natural gas spot prices were up 46 cents from a week ago to $4.20 per million British Thermal units (MMBTU) at Oklahoma’s Henry Hub. That is also nearly 73 cents higher than a year ago.

The EIA is expected to release its monthly short-term energy outlook next week. The updated forecast from the U.S. Energy Department is expected to reflect the dramatic decline in domestic and internal crude oil prices, and its effect on retail and wholesale gasoline prices in the near term and through 2015.

The team helping Gov.-elect Asa Hutchinson become the next governor will include Mike Carroll of Fort Smith and Philip Taldo of Springdale.

Standing in front of a portrait of Republican governor Frank White in the Capitol Rotunda, Hutchinson announced his transition team’s steering committee and said he would not decide what to do about the private option until January.

During his first press conference as the state’s newly elected governor, Hutchinson said his steering committee is composed of:
• Mike Carroll of Fort Smith
• Stacy Hurst of Little Rock
• Alec Farmer of Jonesboro
• Philip Taldo of Springdale
• Mayor Arnell Willis of Helena-West Helena
• Steve Lux of Hot Springs Village

Carroll is a CPA and partner with Fort Smith-based Beall Barclay & Company. He joined the accounting firm in 1981, and is a 1977 graduate of Ouachita Baptist University. Involvement outside the company includes serving on the Board of Trustees for the Ouachita Baptist University Foundation, board of directors of the Fort Smith Regional Chamber of Commerce and former board chairman of St. Edward Mercy Medical Center – now Mercy Fort Smith. He and his wife Pam live in Fort Smith.

Taldo is a Realtor and owns Griffin Company Realtors and One Springdale Inc., a development company. He is a graduate of Springdale High School and has been in the real estate business since 1978. Outside activities include being a member of the Northwest Arkansas Regional Airport Authority, board chairman with Hope Cancer Resources Foundation and advisory board member with Arvest Bank-Springdale.

Hutchinson, the committee, and his other transition leaders will have plenty of work to do. In addition to creating a budget that includes his promised middle class tax cut, Hutchinson must decide which agency heads to keep and which to replace. Among the holes to fill: Richard Weiss, longtime director of the Department of Finance and Administration, who has announced his retirement.

BEEBE MEETING, PRIVATE OPTION
Hutchinson said he had “an excellent meeting” Nov. 6 with Gov. Mike Beebe. Hutchinson’s newly named chief of staff, Michael Lamoureux, was at the meeting as well. Hutchinson said he had reached out to legislative leaders, including Senate Minority Leader Keith Ingram, D-West Memphis, and House Minority Leader Eddie Armstrong, D-North Little Rock.

Tuesday’s election put the state’s Medicaid private option in jeopardy. The program that uses federal dollars to purchase private insurance for lower-income Arkansans barely passed in 2013 and barely survived in 2014. A number of vocal opponents were elected in Tuesday’s Republican landslide.

Hutchinson said he would work with leaders in the Legislature and in state government to look at benefits and costs and to determine if the program should be continued and, if so, what changes should be made. He said he would not commit to a decision “at least through the end of January.”

“You can ask me every day,” he said. “It will be the same position as I took during the campaign because (I’m going) to continue to study that, listen to everybody, make my own decisions on it, and then it will be at least that long to develop my approach to it.”

Hutchinson said his priorities would be career education, computer science courses in high school, and his tax cut plan, which he said was his highest priority. He said he would call at least half a dozen industrial and business recruits on his first day of office. Community leaders have already provided him names of prospects.

Hutchinson said he had received a call from President Obama the night of his election.

“He importantly recognized the key role that governors play in directing really national policy, and he wants to have a good partnership with governors,” he said. “I certainly expressed my support for that, willingness to work with him on key issues that impact our state.”

Northwest Arkansas is the second largest metro area in the state and growing at a faster clip than much of the nation which is why bankers from outside the area are once again branching into the market.

Undeterred by the 178 branches already operated by 31 banks doing business in the two-counties, at least six other banks are in the process of locating new branches in Benton and Washington counties on the heels several consolidations.

About half of the branch expansions are from banks new to the region from smaller metro markets such as Batesville, Paragould and Fort Smith. The others are local banks expanding their footprints across the growing two-county area.

NWAMARKET
As banking markets go, Northwest Arkansas is the most competitive market in the state, according to banking consultant John Dominick, professor of finance at the University of Arkansas. 

The Federal Deposit Insurance Corp. indicates there are 21 banks with 90 branches holding $4.092 billion in deposits in Washington County as of the June 30 report. In Benton County there are 28 banks with 89 banks holding $4.007 billion in deposits. Together this market has 15% of the state’s deposits, second only to Pulaski County’s 20% market share.

The Pulaski County banking sector has 24 banks with 185 branches holding $10.8 billion in deposits. Northwest Arkansas had 179 bank branches as of June 30, with $8 billion in deposits.

“Northwest Arkansas is overbanked and that’s not likely to change because so much of the growth and opportunity in the state is centered here. Competition keeps pricing down which can be good for consumers, but a drag on profits,” Dominick said.

In the past two years Great Southern Bank of Springfield, Mo., added two branches in the market, Integrity Bank of Mountain Home opened a branch in Benton County and Intrust Bank of Wichita, Kan., opened a branch in Rogers. Grand Savings Bank of Grove Okla., opened branches in Benton and Washington County since divesting Decatur State Bank.

SEEKING LOAN GROWTH
Banking consultant and lawyer Garland Binns, of Dover, Dixon and Horne, said the emerging trend in bank branching has been to metropolitan areas, as they seek loan growth opportunities.

“Loans are one of the keys to profitability. Metropolitan areas offer more lending opportunities. Rural areas generally struggle for loan demand. However, banks in rural areas generally have a high deposit to loan ratio and by expanding into a metropolitan area, banks can better utilize the excess of deposits. This trend will continue for the foreseeable future,” Binns said.

Donald Gwinn, president of First National Bank of Paragould, said the bank plans to open its first local branch in the Pinnacle Hills Parkway branch later this month. Signs went up at the former Metropolitan National Bank location last week and Gwinn said they are adding some staff.

First Paragould Bankshares recently purchased five bank branches from Pine Bluff-based Simmons Bank for a reported $12 million, which included furnishings. Gwinn said the bank is moving slowly with its branch expansion. While the bank owns five locations, it plans to ease into the market, opening Rogers this month and Bentonville (300 S.E. Walton Blvd.) in December and then holding off on the others until 2015 or later.

“We are a conservative bank and are still formulating our plans for this market. It will be methodical from here on out, ” Gwinn said.

Doug Lynch, president of Citizens Bank of Northwest Arkansas, is no stranger to this market, though he’s served as chief lending officer for the Batesville-based Citizens Bank since 2011. Lynch told The City Wire that he recently relocated to Fayetteville to help launch Citizen Bank’s first loan production office and ultimately a full-service branch at 1676 East Joyce Blvd., in the former Delta Trust Bank building.

Ironically, Lynch originally opened that office a few years ago when he headed up Delta Trust & Bank’s move into Fayetteville. Lynch also worked as a market president for Liberty Bank which was acquired by Centennial Bank. He said bank consolidations of the former employers lead him to Batesville where has worked since early 2012. 

Lynch said Citizen’s move into Northwest Arkansas is rooted in the bank’s strong capital holdings and need to grow. 

“Batesville is a great place and Citizens commands a large market share there, but that region has had a stagnant population for the past decade. Competition is coming there too and Citizens is looking to grow its business outside of its home base,” Lynch said.

He plans to open the loan production office at the Joyce Boulevard location on Feb. 1, with a small staff he is in the process of hiring. From there Lynch expects to expand into a full-service branch once it can sustain itself. Lynch said his 7-year plan calls for offices in both counties, but it will be a slow move because the bank is not willing to build branches for the sake of hanging a shingle.

“Year one calls for me to get the Fayetteville loan office and ultimate branch open and self-sufficient, before I venture into Springdale in year two or three,” Lynch said. “Benton County will follow that. I am optimistic about what I have seen in recent meetings with clients and prospective clients.”

Citizens Bank has roughly $500 million in assets and a strong capital base with a low percentage of delinquent or past due loans. He said the bank is also looking for acquisition opportunities in this market and elsewhere in the state.

In August, Benefit Bank-based in Fort Smith, received authority to open a full-service branch in the Har-Ber area of west Springdale. The bank has had a loan production office in Springdale for several years. Bank officials did not return The City Wire’s request for comment on the new branch. 

INSIDE EXPANSION
Rob Husong, regional president of First National Bank NWA, said the bank is set on opening its first branch in Bentonville next year. 

“Bentonville is a logical move for us with our branches in Rogers and Centerton. Bentonville rounds out the donut shape and we have a fair number of customers who live in Bentonville,” Husong said.

The bank purchased property at 402 S.W. A St., in the heart of Bentonville’s up-and-coming Arts District. Husong said the bank didn’t need to be on Walton Boulevard but they did they seek a central location for convenience. Husong said the bank hopes to break ground on the new branch in the first quarter of 2015 and open before the end of the year. He said they are looking at non-traditional construction, something that blends well into the Arts District and also provides lease space for artists and other small businesses.

The bank has also leased space with plans for a new branch in east Fayetteville on Joyce Boulevard, near Crossover Boulevard. He said that operation is needed to serve their client base in Washington County as more people commute north and south from Fayetteville.

This Fayetteville branch is slated to open in early 2015. Husong said the bank is hiring staff for that location and eventually the bank plans to seek out it’s own parcel and build a brick and mortar location that fits the surrounding community.

COMPLIANCE COSTS
Husong said he’s not surprised to see banks branching, particularly those looking to grow the business in the face of higher operating costs. Lynch agreed, adding that Citizens Bank is wanting to spread some of the higher back-office costs associated with federal Dodd Frank compliance across a larger base. 

Today’s Bank President Larry Olsen said higher operating costs related to Dodd Frank requirements is weighing the heaviest on small banks. 

“We are feeling it, especially in the mortgage areas,” Olsen said. 

Today’s Bank, with $102 million in assets, has branches in Fayetteville and Huntsville, and recently gained approval for a new branch at 5178 West Sunset near the Interstate 49 interchange in the heart of Springdale. Olsen said the city approved the brick and mortar branch and they are moving ahead with plans to break ground in the next few months.

“Springdale is a thriving market and we want to move further up the I-49 corridor in an effort to grow our bank’s presence,” Olsen said. “It’s been a decent year in banking and all the banks are looking for more growth. The business feels a lot better than it did a few years ago, despite the tighter regulations.”

Today’s Bank posted net income of $1.745 million through nine months of this year and has one of the highest return on asset levels of all the banks the region at 2.28%.

The pools have been drained and the patrons have long gone home, but officials with the Rogers Aquatic Center said operations in its first two years have exceeded expectations.

“We logged 110,000 park visits this past summer, which is on par with our opening year and we had 15 fewer operating days in the 2014 season. You know we (area school districts) had 13 make-up days from the snowy winter and we lost two days in June to thunderstorms,” said Barney Hayes, director of the Rogers Parks Department.

Hayes said the $12.9 million aquatic center generated $1 million in gross revenue in each of its first two years of operation. He said this pales in comparison to the $26,000 in annual gross receipts the city had from the old Lake Atalanta pool, which was the site for swimming lessons in the city.

“Our swimming instruction revenue alone was $30,000 this past year and we had 15 lost days,” Hayes said.

BUDGET CONSCIOUS
The park operates on an annual budget of $500,000, most of which covers a $300,000 payroll, Hayes said. The park employs about 120 workers, most of them seasonal lifeguards with a few maintenance and concession stand workers in the mix. 

The aquatic center has two full-time employees a manager and an assistant. Pool chemicals cost roughly $60,000, while liability insurance, water and electricity run about $140,000 a year.

The city spent nearly $13 million constructing the 3-acre water park, money earmarked from a $26.8 million bond issue in 2011. The rest of the bond revenue went to the construction of new ball fields which allow the city to host more competitive softball and baseball tournaments throughout the spring, summer and fall. 

The aquatics park was designed to be self-sustainable from year one and set pricing at $12 for residents and $15 for nonresidents. After some initial flack from patrons on the pricing, the city negotiated a special 10-Punch Splash Pass at half price at the start of the season which reduced the cost down to about $4.25 for residents and $4.75 for nonresidents. The 10-punch pass regular price breaks down to a 52% discount for nonresidents and a 40% discount for Rogers residents. Group prices and after-hour party rates are also given. Based on the $1 million of gross revenue, excluding food concession revenue, patrons on average are paying around $8 per person.

Hayes said the $12 regular price offered value over the typical $35 ticket cost for White Water in Branson – not including the extra gas money.

“I understand the new water park opening in Fort Smith in 2015 has set ticket prices at $15 and they are expecting to have around a $1.3 million annual operating budget. We feel good about our ticket prices and our half-million dollar operating costs,” Hayes said.

The Rogers Aquatic Center also offers a picnic area outside the park where families wanting to save on food can enjoy a sandwich from home. Hayes said concession stand prices are also reasonable and “are no where near movie theater or theme park costs.”

He said being self-sustainable is a key goal of the aquatics center With an 11-week operational schedule there is limited time to earn the money needed to break even each year.

“We are very pleased with the park, the profit levels, traffic patterns and overall operations in our first two years,” Hayes said.

OPERATIONAL LEARNINGS
He said from year-one to year-two the Rogers Aquatic Center added a fence around the Lazy River water feature to provide an additional level of safety. They also purchased an additional 100 lounge chairs after having underestimated the original need.

“We also added more parking based on the size of crowds coming to the park. We made these adjustments out of revenues generated in the first year,” Hayes said.

The park also added more lifeguards for year-two increasing the count from around 70 to 100, most of which worked 20 hours a week. The chemicals, water and electricity usage were comparable in both years of operations an on par with the budget.

Suzy Turek, manager for the aquatics center, said they also instituted a volunteer junior lifeguard program this past year which has been popular with tweens and their parents. 

“They are Red Cross certified but too young to work. They volunteer in the park providing extra eyes and ears to the employed life guards,” Turek said. “We plan to expand that program in 2015.”

She said it quickly became evident that the park needed more concession stands, so they added a small stand ahead of year two and have planned to expand again in 2015. One other area the park is looking to improve is with features for the non-swimmers.

“We want everyone who comes to the park to have a unique experience and that included the nonswimmers.” Turek said.

QUALITY OF LIFE
Mayor Greg Hines said the aquatics park and ball fields that comprised the $26.5 million bond issue are investments in “quality of life” that will have enduring benefits to the city long-term.

During a recent mayoral forum Hines said the city continues to invest in “quality of life” assets because of their importance in attracting talent to the region. He said aside from helping to generate tourism dollars, trail systems and parks are a key element in ensuring the region can attract and retain enough talent to ensure employers stay open and have room for growth. Hines said there is a strong correlation between population growth and “quality of life” assets within a community.

That’s why, he said, the city spent $15 million on improvements to Lake Atalanta and a 100-acre park near downtown. He said the city is now using these prior investments as leverage to help attract more investors to the downtown region.

With Republicans taking control of the U.S. Senate, all seven Arkansas constitutional offices and strengthening their majority in the Arkansas General Assembly, there's no doubt that this week was a good one for the Republican Party. But U.S. Rep. Steve Womack, R-Rogers, said governing will be anything but easy.

To illustrate his point, Womack recited a saying from his father about dreams and reality.

"Son, the realization is never as great as the anticipation," Womack quoted his father as saying, adding a personal anecdote. "In Washington, as in Little Rock, there are things we will always like to do, and they almost always have to be balanced against a political reality of making them happen."

Womack spoke Thursday (Nov. 6) during the annual meeting of the Fort Smith Regional Chamber of Commerce.

Even with the majorities gained by Republicans Tuesday (Nov. 4), Womack said the fatherly wisdom imparted on him reminds him that he and his constituents will have to be patient as Republicans work to affect change nationally and locally.

Womack, who was re-elected Tuesday by a whopping 79.4% against Libertarian Grant Brand, also acknowledged that the week was not just good for Republicans nationally and locally, but for Arkansas Republicans the election was also historic.

"We're just a couple of days removed from a very historic election in our state and nation. In Arkansas, for the first time in 141 years, the GOP has control of every single federal elected position. Not only have I been witness to this phenomenal shift, but I have participated in it," he said. "And at the state level, every constitutional office in our state now resides with the GOP."

Womack said his work in the next Congress would directly impact his constituents back in Arkansas and specifically, in Fort Smith. Among the local issues Womack said he was working on in Congress was ensuring the new missions of the 188th Wing of the Arkansas Air National Guard continue to progress, along with the 123rd Intelligence Squadron which is relocating from Little Rock Air Force Base to the ANG base in Fort Smith.

The missions, according to a presentation Thursday by outgoing Fort Smith Regional Chamber of Commerce Board Chair Melissa Hanesworth, has a $144 million economic impact on the region.

Womack said he was working to make sure the squadrons' operational timelines established by the Pentagon stay on track and said while attending the Army-Navy football game at the U.S. Military Academy in West Point, N.Y., he met with Secretary of the Air Force Deborah Lee James. He and James were able to make plans for her to visit Fort Smith, which he said would happen "soon."

"Secretary James is keenly aware of the transition and has assured me that the future of the 188th is secure and that the timelines will be met," he said.

The timelines established include the establishment of a SCIF, also known as a sensitive compartmented information facility, at the Fort Smith base which he said would allow the squadron to discuss and house classified information tied to its mission. The completion date for the SCIF, he said, is the first quarter of fiscal year 2016.

He also said the remote piloted aircraft (RPA) mission at the base should launch by the third quarter of FY2016, with a space targeting mission set to launch during FY2016's fourth quarter.

Womack's speech also touched on his work on the House Transportation and Infrastructure Committee, specifically discussing local infrastructure needs, the federal Highway Trust Fund and how a solution in Congress could have a direct local impact on industry.

"Long-term solutions to funding America's infrastructure needs continues to be elusive to Congress," he said. "I am hopeful the new Congress can find the right solution, whether it's a user-based solution or some other unique opportunity. Bottom line, we need our roads. We need I-49. We need additional depth on the MKARNS (McClennan-Kerr Arkansas River Navigation System). When you consider the confluence of systems – river, rail, air, and interstates, not to mention the availability of energy resources – the Fort Smith region and its resources is uniquely situated to be the center of the resurgence of American productivity."

A change in insurance rates and possible cost of living raises the major highlights of the proposed Fiscal Year 2015 budget presented to the Sebastian County Quorum Court Thursday night (Nov. 6).

Regarding insurance for county employees, County Judge David Hudson said the county had offered two different insurance plans with $2,500 and $1,000 deductibles respectively. The county, he said, was shelling out more money on the higher deductible plan which has lead the judge's office to recommend combining all employees into a single plan that would have a $2,000 deductible.

For an employee of the county insuring him or herself only, the plan would run $80 per month, while an employee and any dependents (i.e. children, spouse or both) would up the plan to a flat rate of $204 per month.

Compared to the 2014 rates for the two plans, employees on the $1,000 deductible will pay the same amount for coverage at $80 per month, but family plans under the $1,000 deductible were running $254 per month. The new plan will cost $50 per month less.

On the $2,500 deductible plan, individual employees were paying $20 per month while family plans were running about $104 per month, meaning both plans increased by $60 and $100 per month respectively, though the deductible dropped by $500. Hudson did not state how much combining all employees into a single plan.

"A continued emphasis on wellness programs and benefits will be emphasized as a documented health initiative that improves the well being of employees and has helped stabilize health care costs in other organizations both regionally and nationally," the budget document outlining the insurance costs stated.

Hudson said the attempts at cost savings came as a result of flat revenues at the county from the countywide sales tax and property tax collections.

"Total General Fund personnel cost has grown 18% over the past five years while General Fund revenues have increased 17% during the same time period," he wrote. "Slow growth in County property taxes and decreasing or flat increases in County sales tax revenues are significant budget issues for 2015 and later County budgets."

Tied to personnel costs is a proposed 1% cost of living increase for all county employees, which is historically less than previous years.

"In 2009, we had a 3% merit and capital improvement adopted in the budget," he said. "In 2010, 3% cost of living and capital included in the adopted budget. In 2011, 2% cost of living and no cap. It was deferred to February. 2012, 3% cost of living. No cap. It was deferred to February. 2013, 0% cost of living, no cap. It was deferred to February. 2014, 2% cost of living and no cap. Deferred to February."

While Hudson is pushing for raises, up to $505,000 will have to be cut he told Justice of the Peace Linda Murry when questioned about the proposed spending plan.

He told her options would be discussed with the Quorum Court at meetings next week, with the court left to decide where potential cuts should come from.

"What it comes down to is do you want to give people a raise, do you want to allocate 1% or do you want to do special pay and reclassifications and things like that," he said, speaking of a reorganization of the county's pay grade system across all departments.

"You have to make a decision about where you want to spend your money," Hudson added. "We have a close budget."

Joe Davis, the director of training and quality awareness at ABF Freight System and a former Fort Smith City Director, died suddenly Friday morning (Nov. 7). He was 64.

Davis worked with Fort Smith-based ABF for 42 years. He is a past president of the Westark Area Council of Boy Scouts, served as Ward 4 City Director between 2001-2004, served on the Fort Smith Planning Commission (2008-2010), served on the Riverfront Task Force, and was a graduate of Leadership Fort Smith. He earned a bachelor’s degree in transportation and marketing at the University of Arkansas.

In late 2007, Davis coordinated ABF’s efforts in donating a truck to deliver U.S. Marshals artifacts from Cheyenne, Wyo., to Fort Smith. Prior to the shipment, Fort Smith had been named the site for the national U.S. Marshals Museum.

Judy McReynolds, president and CEO of ArcBest, the parent company of ABF, issued this statement to company employees:
“It is with great sorrow that we let you know that Joe Davis, Director of Training for ABF Freight, passed away suddenly this morning. Joe had been a faithful employee of ABF Freight and ArcBest for over 42 years. Through his work in various areas of our company including sales, operations, Quality, corporate facilities and training, Joe touched many lives. A major part of his time here was spent educating and training our employees in the ABF Freight Quality Process and in the many ABF Freight training classes that he coordinated and developed. His work in helping equip our folks with the knowledge and tools they needed will benefit us for many years to come. Joe’s fun-loving spirit and great sense of humor were endearing qualities that many of us will remember fondly and with a smile.

“Please join all of us in offering your condolences to Joe’s family, and continue to keep them in your thoughts and prayers in the coming days.”

Davis entered the ArcBest corporate headquarters building Friday morning, but suddenly collapsed. Efforts to revive him were unsuccessful.

David Humphrey, vice president of Investor Relations for ArcBest, said Davis came into contact with thousands of company employees because of his leadership in the training and quality programs.

“I can’t think of anyone in our entire company who has had more contact with our people than Joe Davis,”  Humphrey said. “It has to be a huge, huge percentage of our people” who he had contact with.

Fort Smith Mayor Sandy Sanders issued this statement: “Joe Davis served Fort Smith citizens for many years, on the planning commission and the board of directors. In these roles, he contributed many hours to the citizens of our city and to the business community. Still, Joe was compelled to also be involved in the lives of young men in our area, as a leader in the Boy Scouts of America. Fort Smith will miss Joe’s quick wit, his love for others, and his passion for our region.”