Arkansas Legislative Audit releases Alexander’s 2024 report; Accounting errors listed

The City of Alexander’s annual Legislative Audit report, for the calendar year 2024, has been published on the agency’s website. The audit is conducted annually by the State of Arkansas. The audit for 2024 was performed in 2025.

As stated in the report, the purpose of the annual audit, “(I)s to assist local government officials by promoting sound financial management and accountability of government resources. The Legislative Auditor reports on the fiscal affairs of local governments, as well as compliance with relevant state laws and observance of good business practices to provide accountability for tax dollars expended to support government operations.”

The report also states, “Management of the City is responsible for maintaining the financial records and complying with state laws and accepted accounting practices.”

The audit does not involve a financial reconciliation of the budget.

City officials listed in the report for 2024 are, “Mayor: Crystal Herrmann, Recorder: Sharon Bankhead, Treasurer: Vacant, District Court Clerk: Janet Guess, and Police Chief: Robert Burnett (resigned December 17, 2024).”

Anyone who follows news out of city hall knows Chief Burnett, and two other officers, were fired by Herrmann the Tuesday following the December 16, 2024 council meeting. Former treasurer JoAn Churchill resigned in December, 2023. This was Herrmann’s second year as mayor.

The report states, “During our evaluation, noncompliance with state law and accepted accounting practices was noted in the office of the Treasurer.”

The report states, “Accounting procedures for municipalities are set forth in Ark. Code Ann. §§ 14-59-101-14-59-119. The City was not in compliance with these Code sections and other accounting procedures as follows: Prenumbered receipts were not issued for all funds received. Cash receipts journals were not properly posted and reconciled with bank deposits. Monthly bank reconciliations were prepared but were not accurate. A detailed fixed asset listing was not maintained to include additions, deletions, and a control total. A similar finding was noted in the previous two reports.”

Since a bookkeeper is not listed, it is unknown who was maintaining Alexander’s accounts.

The 2024 audit report should be a topic of discussion at the council’s September 21 meeting.

Abatement grant denied

In its first attempt at receiving a Brownfield Grant, Mayor Crystal Herrmann reported the grant request was denied. Since becoming mayor of Alexander in January, 2023 the city has been following the numerous steps necessary to receive a Brownfield grant from the Environmental Protection Agency (EPA). The grant program is funded by the EPA and is used to clean properties where the presence, or potential presence, of a hazardous substance, pollutant, or contaminant makes development difficult.

Herrmann has been attempting to acquire a Brownfield grant in order to make the former Alexander Human Development Center (AHDC) property safe for development. The expectation is the former hospital building contains asbestos, lead paint and potentially other unknown hazards.

It wasn’t a total loss. We now have an estimated price tag for just removing the health hazards before demolishing the building.

At the August 17 council meeting Herrmann said, “But, considering after visiting with some contractors as far as just the abatement, that's not getting rid of the building, but just the abatement, we're looking at the $800 to $900,000 by itself. Just to (sic) abatement.”

When asked about razing the building without going through the abatement process Herrmann explained all of the rubble will be disposed as hazardous waste, instead of a smaller amount when abated first. There is a cost to disposing hazardous waste.

“So you do want to abate it before you knock it down, if there's any way possible, because if you do not abate it first, once it's knocked down, then all of the materials they get pulled off have to be treated as hazardous waste,” Herrmann said.

The city will submit another grant request, but the mayor noted as time goes on the cost will probably increase. Herrmann said the city will have to fund a portion of the cost. Although, she didn’t say what percentage would be the city’s share.

Herrmann said she will continue to look for other funding options. She also suggested that they begin budgeting for the matching funds and the possibility of having to go it alone.

The AHDC property, located along Highway 111 in South Alexander, was originally the site of the first tuberculosis sanitarium for African-Americans in Arkansas. Eventually, it was converted into a home for any adult with special needs that required care and training from professionals.

When the Arkansas Department of Human Services no longer had a use for the property it was deeded to Alexander in 2018. Under state law the property could not be sold to an individual. It could only be taken over by another government entity such as a municipality or county. The goal has been to find a developer who can turn it into a commercial center.

After the city took ownership of the 65-acre property the building was mostly destroyed by fire. The fire was ruled as arson but no one has ever been charged.

Mayor to spend $3,000 for street survey

Mayor Herrmann reported to council members she is hiring Argon, a company that will survey city streets and rate their condition from good to bad. She says the information will be used to establish a street maintenance schedule.

“Argon, and they offer a service to come in and do an assessment on all of our city streets,” Herrmann began. “And it will rate the streets. And it will give us a good, ... bad, like the worst grades. They offer multiple services, but they might actually be able to also give us like culvert counts, conditions and things to that nature as well.”

Herrmann said the survey will be limited to the older areas of the city. St. Joseph’s Glen and Meadow’s Edge streets won’t be included. For their basic services she estimated the cost around $3,000.

“So I think just from the basics of it was like around $3,000, and I felt like it's a very good tool that we can use for the street department,” Herrmann said. “Because then we can start a schedule of maintenance, sealing a lot of places. So we can take a look at what we want to do repairs on and also start that maintenance schedule.”

In November, 2015 Alexander paved the first set of streets funded by a grant that’s part of the State Aid City Streets program. Cities are offered access to this program as part of a gasoline tax passed by voters to upgrade interstate and state highways along with city and county streets and roads. The last set of streets paved under this grant program, which was approved in 2022, were paved in 2023.

A city or county is allowed to submit a request every three years. During the three-year gap Alexander paved additional streets using revenue in the street fund. Herrmann said the grant program may not serve the city’s needs much longer.

“[W]e're on every three years of the highway program,” she said. “And that's not going to work for very long. Like it officially, we're going to end up with more bad roads than good. So if we start a maintenance schedule and you lost this tool (the grant), it'll keep us on track to keep the things that we have in good standing. And then be able to also move more of the other places.”

Next Meeting

The next meeting of the Alexander City Council is Monday, September 21, at 6:00 PM in the courtroom of the Alexander Municipal Complex (City Hall). Meetings are open to the public.

Variance for manufactured home approved, Property tax rate unchanged, Budget line item increased $40,000

The Alexander City Council approved a variance request that will allow a manufactured home to be place on a lot with less than the required square footage. However, placement of the home will still meet all the setback requirements.

What started out as a large single lot went through a variance process in 2024. Back then property owner H. Erick Montoya received permission to have the single large lot divided into two smaller lots. The variance was needed because the minimum lot size allowed is 8,000 square feet. Splitting the lot left one half with 6,916.5 square feet and the other 6,901.5 square feet.

The two lots are located at the corner of Regency Drive and Charles Street in South Alexander. One lot only fronts Regency Drive, while the other faces both Regency Drive and Charles Street.

At the 2024 variance hearing Montoya proposed building two site-built homes. Because of unforeseen drainage issues he now wants to place a manufactured home on the lot at 14916 Regency Drive. He plans to leave the second lot, which borders Regency Drive and Charles Street, vacant. Since the zoning in this area allows both site-built and manufactured housing a change in zoning will not be needed.

At the August 17 council meeting Council Member Angela Griffin expressed concerns that something else may come up later concerning the proposed vacant lot, requiring another variance.

“When you're saying that you're probably, eventually put (sic) another home with that other lot, I'm just a little hesitant because something different came up this time,” Griffin said.

At the time of the 2024 variance request an old-style trailer/mobile home sat in the middle and to the rear of the large lot. Montoya said it hid the drainage area.

“Well, the drainage difference,” Montoya said. “When there was the old home (trailer) that was there, it was almost sitting back almost where the drainage is.”

At the previous July council meeting Montoya told council members he attempted to level the property with multiple dump truck loads of dirt. However, in his written request for the variance, he has come to the conclusion the amount of water run-off expected will not be suitable for a site-built home. Because manufactured homes are designed to be setup above ground, he feels this would be a better solution.

Prior to the August council meeting a public hearing was held to give residents the opportunity to express any concerns they may have about the requested variance. No one from the public spoke in favor of or against the variance. Mayor Crystal Herrmann reported that no one submitted any comments in writing. This portion of South Alexander is mostly made up of manufactured housing.

Other agenda items at August 17 meeting

Real Estate and Property tax rate unchanged

Two ordinances were approved setting the annual real state and property tax millage rate at 1.5 mills. The ordinances establish the millage rate to be collected by Saline County and Pulaski County in 2027 for the 2026 taxing year. The 1.5 rate, lower than the maximum five mills, was reduced while Paul Mitchell was still mayor in exchange for passage of a 1-cent city sales tax for the General Fund in 2017.

Budget line item increased $40,000 to replace HVAC units

Council members approved amending the general fund portion of the 2026 budget to pay for replacing five HVAC units in several city buildings. The Building Maintenance line item will be increased from $10,000 to $50,000.

Three of the buildings include the courtroom at the Alexander Municipal Complex and two cottages at the former Alexander Human Development Center (AHDC). The courtroom HVAC system crashed right before the July council meeting, which caused the meeting be moved to the Community Center #2 at the AHDC property.

Mayor Herrmann said the HVAC units didn’t breakdown at the same time. The requested $40,000 increase is an accumulation of repairs over several weeks. She said bids were submitted for each project.

Next Meeting

The next meeting of the Alexander City Council is Monday, September 21, at 6:00 PM in the courtroom of the Alexander Municipal Complex (City Hall). Meetings are open to the public.