Independence Day Approacheth, Fireworks' rules reminder

Independence Day (July 4) is near. If you plan to shoot fireworks in the City of Alexander there are some rules you need to know. The ordinance establishing these requirements became law in June, 2019.

The use of fireworks:

“No parent, guardian, or custodian of any child under the age of majority shall knowingly permit or consent to the possession or discharge of fireworks by any child under the age of majority without proper supervision.” The ordinance also states the, “[P]ossession or discharge of fireworks” is, “[P]rima facie evidence of the knowing permission or consent of such parent, guardian, or custodian.” In other words you’re responsible for the actions of the child whether you know what they’re doing or not. In Arkansas the age of majority is 18 years old.

Where and When:

The ordinance limits the discharging of fireworks, “[O]n private property of the owner, by the owner and immediate family, when discharge is in a safe and sane manner.” “Safe and sane manner,” is defined as, “[A]ctions which do not endanger life, limb, or property of those in the area of the discharge.”

Fireworks may not, “[B]e discharged within the boundaries of or within three hundred feet (300 ft.) of any public park owned or maintained by the city.” Also, fireworks may not be, “[D]ischarged upon any public street, alley, road, or right-of-way,” … “[U]nder or upon a motor vehicle, whether moving or not, or within three hundred feet (300 ft.) of any gas station, gas, oil, or propane storage facility, or other area which is highly flammable in nature.” Fireworks also may not be discharged if the Fire Chief has issued a burn ban due to drought or other conditions.

The ordinance allows for the discharging of fireworks from 12:00 PM (Noon) until 10:00 PM on July 3 and July 4.

Clean up when finished:

The revelers are also required to clean-up the mess. The ordinance states, “Any individual, firm, partnership, corporation, or association discharging fireworks under this ordinance shall, upon such discharge, be responsible for clean-up of the discharge site, including disposal of all discharged fireworks, all non-discharged or ‘dud’ fireworks, and the associated debris from the area in a safe manner.”

Fireworks defined:

The ordinance provides a definition of fireworks. Besides the legal and technical definition, examples of what constitutes fireworks is provided. The list includes, “[S]ky rockets, roman candles, daygo bombs, blank cartridges, toy cannons, toy canes, or toy guns in which explosives other than toy paper caps are used, the type of balloons which require fire underneath to propel them, firecracker, torpedoes, sparklers, or other fireworks of like construction, any fireworks containing any explosive or flammable compound, or any tablet or other device containing an explosive substance.”

Enforcement and penalties:

Police, fire and code enforcement officers are given the authority to enforce this ordinance. They also have the authority to, “[S]eize, impound, remove, or cause to be removed, at the expense of the owner, all stocks of fireworks offered for sale, sold, or in the possession of any individual, firm, partnership, corporation, or association in violation of this chapter.” Penalties start at, “[A] fine of not less than one hundred dollars ($100) or more than five hundred dollars ($500) for a first time offense, a fine of not less than two hundred dollars ($200) or more than five hundred dollars ($500) for a second offense, and a fine of not less than three hundred dollars ($300) or more than five hundred dollars ($500) for a third or subsequent offense. Each day of a violation constitutes a separate offense.”

The ordinance also covers payment for damages and the cost of any services provided. “Any damages caused or injuries sustained as a result of any violation of this chapter shall be ordered paid as restitution as part of any conviction for any violation,” it states. Also, “The court may order the reimbursement of costs of enforcement, investigation, fire suppression services, and overtime related to a violation upon conviction.”

There's more than one way to finance a firetruck

Alexander officials have had to find a different funding path to fulfill their dream of buying a new firetruck. When trying to process the loan, that was approved during a previous special meeting, they learned Arkansas' five-year loan maximum is still in effect.

During a special meeting held June 5 the Alexander City Council, after a tie-breaking vote by Mayor Crystal Herrmann, approved the purchase of a new firetruck through the use of a ten-year loan. According to sources, when attempting to process the loan with Government Capital Corporation, city officials were told Arkansas only allows a maximum of five years on loans. Those who voted "Yes" were relying on a rumor the Arkansas Legislature had recently increased it to ten-years.

Counties and municipalities are limited to a maximum of five-years for loans under Amendment-78 of the Arkansas Constitution. The attempt now is to purchase the firetruck using Amendment-65, which allows the use of a secured revenue bond or lease.

Jim Templeton, from First Security Bank, explained the process to acquire a secured revenue bond or lease. The City of Alexander has all of its accounts with First Security Bank.

"You've got Amendment 78 and you have Amendment 65," Templeton said. "Seventy-Eight financing allows anything for five years or less. If you want to go longer on your financing, you have to go with Amendment 65."

"It's a revenue bond or lease. It can be worded either way," Templeton continued. "And, it just has to have a pledge to secure payment to go out further than five years."

Templeton explained how any funding source can be used as security except taxes. Franchise fees are one option.

"You have a franchise fees [sic] that you get $105,000 a year. You can pledge those," Templeton said. "You don't have to use them because you already have the money that you can pay for (it), the yearly note on the fire truck and the fire department's budget. But to extend it (the loan) out longer than five years, you have to make that pledge. To do that, you just need to make an ordinance, (or) a referendum."

During the special meeting held June 5, McCormick laid out how the firetruck will be financed. Most of the funding for the payments will come from a combination of annual ACT 833 funds and savings from not having to repair old firetrucks. Funding for the ACT 833 program is provided annually by the State to allow fire departments to buy needed equipment.

"Between 2020 and 2022, we spent $252,000.00 on general maintenance of our firetrucks," McCormick said at the June 5 meeting. "Just last year, we spent $135,000, ... on just maintenance and trying to keep our firetrucks moving."

"The city of Alexander Fire Department receives (ACT) 833 money every year and adds up to $26,754.00," McCormick said. "If you subtract that from the $74,000 payment a year, that adds basically $48,680 left for what we owe off of the fire department."

McCormick also planned to take money received from selling the two oldest firetrucks and put that towards the purchase of the new truck. One truck has already been sold.

"Also, we were able to sell one of our fire trucks that we have this past week that brought in $90,000," McCormick said at the regular June 19 meeting. "$81,000 of that is going to go on a down payment to the fire truck, the new fire truck."

"So, basically in the long run, we're still paying $582,000 for the fire truck," he continued. "We're paying, we're financing $501,000 for the fire truck."

When asked by Council Member Harold Timmerman why only $81,000 of the $90,000 is being used on the down payment, McCormick explained the missing $9,000 was the 10-percent fee paid to sell the truck through a dealer.

Templeton said Amendment 65 allows for the funding of capital improvements. Council Member Joy Gray questioned calling a firetruck a capital improvement.

"[C]apital improvement tends to be fixed things and things that are attached to those fixed things, not cars, trucks, things like that," Gray said. "So because I work in the state and I have done capital improvement stuff, for me, a truck is an asset. As opposed to a capital improvement."

"I don't want on the back end, Leg Audit (Arkansas Division of Legislative Audit) coming in and being like, 'This isn't a capital improvement, this is an asset,'" Gray said.

"That's what Amendment 65 is all about," Templeton replied.

Under "2020 Arkansas Code Title 19 - Public Finance Chapter 9 - Public Obligations Subchapter 6 - Revenue Bond Act of 1987 - 19-9-604 Definitions," Part (C); legal purchases under this financing option includes, "Any furnishings, machinery, vehicles, apparatus, or equipment for any public betterment or improvement, which shall include, without limiting the generality of the foregoing, the following: ... (iv) Firefighting facilities and apparatus."

Council members received a quick lesson in the process needed to establish a revenue bond. The explanation mirrored Arkansas Code § 19-9-607 (2020), which in part states;

"(a) No proclamation, order, or ordinance prescribed by § 19-9-606 shall be entered by a governing body until the governing body, the governmental unit, or the delegate of either shall have conducted a public hearing, ... (2) or; In the case of a city or county issuing bonds, within the city or county."

"(b) At least ten (10) days before the date set for the public hearing, notice of the hearing shall be published one (1) time in a newspaper of general circulation: (1) In the locality to be affected."

"(c) The notice shall: (1) Contain a general description of the purpose or purposes for which the bonds are to be issued; (2) Contain the maximum principal amount of the bonds; and (3) State the date, time, and place of the public hearing."

The resolution, approved at the June 19 regular council meeting, only agrees to purchase the fire truck, "(B)y entering into a Lease Purchase Agreement with First Security Bank for $501,000 at an interest rate of 5.95% per annum for a term of ten (10) years." It does not establish the revenue bonds needed to finance the, "Lease Purchase Agreement."

Voting "Yes" to adopt the resolution were Joy Gray, Angela Griffin, Joe Pollard, Mitchell W. Smith, Tony Staton, Gina R Thomas. Voting "No" were Harold Timmerman and Juanita Wilson.

Alexander Old Business Agenda; Rinse and Repeat

The Alexander City Council will make another attempt to clean up some old business. Items listed under Old Business are, "Fire code work on city hall, Park fountain bid selection—deed update if any, Repairs for PD (Police Department) building, and Street Department Generator Repair."

The agenda items listed for City Hall, the Police Department and the Street Department were all tabled at previous meetings due to the lack of financial statements. Since January 1, 2023 the City Treasurer has been unable to produce monthly financial statements due to technical issues with the accounting software. The council has decided to not commit to any new spending until a full accounting of the city's finances is available.

Repairing the water fountain in the park was tabled because the city is involved in an eminent domain case involving the east end of the park, which is the location of the fountain. Some council members don't want to make the repairs until the city has a deed in hand.

Listed under New Business is, "LOPFI (Local Police and Fire Retirement System) and Mayor added as view only to bank statements."

The next regular meeting of the Alexander City Council is scheduled for this Monday, June 19 at 6:00PM in the courtroom at the Alexander Municipal Complex. The public is invited to attend.

Alexander Mayor breaks tie vote to purchase firetruck using 10-year loan; Everyone flunked civics

WARNING: Readers may detect opinion by author in article.

Alexander Mayor Crystal Herrmann was needed to break a tie vote, allowing the city to purchase a new firetruck. The discussion and resulting vote to purchase the truck came during a Special Meeting held Monday June 5.

The meeting was called by council members Angela Griffin, Gina Thomas Littlejohn and Mitchell W. Smith, all of whom were present. Also present were council members Joy Gray and Joe Pollard. Absent were Tony Staton, Harold Timmerman and Juanita Wilson.

Purchase of the 2023 E-One Rescue Pumper, at a cost of $582,607.00, will be made possible through a 10-year loan with Government Capital Corporation. The interest rate is 4.9-percent with annual payments of $75,434.47. The first payment isn't due until June of 2024. The truck is a demo being sold by Banner Fire.

In his presentation to the council, Fire Chief Ryan McCormick explained how the city can finance the new truck by selling the two oldest firetrucks and putting that money towards the first payment. Then by using ACT 833 funding, which the fire department receives annually from the State, and by not having to repair the older firetrucks will provide the additional revenue needed to make the annual payment. Also, the new truck comes with a 7-year maintenance plan.

"Between 2020 and 2022, we spent $252,000.00 on general maintenance of our firetrucks," McCormick said. "Just last year, we spent $135,000, ... on just maintenance and trying to keep our firetrucks moving."

McCormick was hired this past May as fire chief. These amounts are based on maintenance records he has reviewed.

"The city of Alexander Fire Department receives (ACT) 833 money every year and adds up to $26,754.00," McCormick said. "If you subtract that from the $74,000 payment a year, that adds basically $48,680 left for what we owe off of the fire department."

McCormick expects that additional funding to come from revenue not spent on repairing the other firetrucks no longer in the fleet.

ACT 833 funds are distributed annually by the State of Arkansas to be used by fire departments for the purchase of equipment. The $26,754.00 is the estimated amount in the city's 2023 budget based on past ACT 833 receipts.

Most of the funding for the fire department is derived from two one-cent city sales taxes. Both were approved by voters with spending limitations. The first one-cent goes entirely to the fire department. The second one-cent tax requires the parks and recreation department receive two-eighths of one-cent, while the police and fire departments share the remaining six-eighths. The fire department receives one-eighth while the police department receives the remaining five-eighths. The estimated total revenue for the fire department this year is $968,909.00.

The department currently has four firetrucks. The truck used to respond to all calls first is Engine-1, a 2003 Pierce Engine with 115,171 miles. The remaining trucks used as backup are Engine-2, a 1988 Pierce Engine with 51,266 miles; Engine-3, a 2000 Pierce Engine with 75,882 miles and the Ladder Truck, a 1994 Pierce with 100,843 miles.

McCormick said the plan is to make the new truck the primary response vehicle and what is now Engine-1 the secondary truck. The two oldest trucks will be sold. That still leaves the city with a three-truck fleet.

McCormick explained some of the guidelines provided by the National Fire Protection Association (NFPA). Some of the guidelines include the optimal age of fleet vehicles.

"In our NFPA guidelines, a municipality, which is who we are, is supposed to be replaced, a fire engine, is supposed to be replaced every 10 years," McCormick said. "

To emphasize how the aging fleet is causing response time issues, McCormick relayed a recent incident when none of the trucks would start to respond to an emergency call.

"We had one recently where we had a citizen in Alexander that was not breathing and none of our firetrucks started," McCormick said. "We had to go in with our personal vehicle and drive to their scene to start doing CPR and to resuscitate."

Explaining the reason for the special meeting McCormick said, "It just came off the demo line and it's up for purchase. It's time-sensitive. When I say it's time-sensitive, we have our name on the drawing board for that vehicle until tomorrow morning (June 6)."

McCormick explained that because this is a demo firetruck (ie. it's already built) Alexander won't have to wait the normal two years for delivery. And, Alexander isn't the only city wanting this truck.

"They (Banner Fire) were aggressively allowing us to keep holding that for the city of Alexander until we could meet today," McCormick said. "That was the only reason that we had my call ... to meet today."

Since January 3, the Alexander accounting software has been unable to produce monthly finance reports. Because of that, the council has tabled almost every spending request until there is a definite accounting of the city's current financial situation. While there was no disagreement Alexander needs a new firetruck, Council Member Joy Gray wanted to know what had changed.

"[W]e've put all these other things on the table because we didn't know about the money, we didn't know about the money, we didn't know about the money," Gray said. "And then now we have this and it's like, oh my god, you have to buy this today. Whereas when we had other stuff, we had to table everything because people hadn't seen the budget. I still haven't seen the budget. I still don't know how much money any department has right now."

"And then today, which I'm not arguing that we don't need a firetruck, we probably do need a firetruck," Gray continued. "But then if I don't make this choice right this very minute, I don't ... we can't have any more firetrucks for two years. That just feels very high pressure and unreasonable for me."

McCormick also noted how this offers Alexander the opportunity to get back into compliance with ISO (International Organization for Standardization) standards. The ISO rating of a fire department is one of the criteria that determines home insurance rates.

McCormick said his focus is, "Getting us back into (ISO) compliance, keeping us safe. Getting us back into having a reliable, dependable firetruck that starts."

"My concern, I guess, would be I'm more concerned with the city not being able to have reliable vehicles," Council Member Angela Griffin said. "For me, and I can only speak for myself, it takes more precedent so the citizens can have reliable vehicles. I'm looking here, 1988 engine 2, that's 35 years old. Engine 3, 2000, that's 23 years old."

"And then our most recent one that we're using is a 20 year vehicle," Griffin continued. "You're waiting two more years and we're already having issues waiting to see if the vehicle starts to take a chance on waiting. And I don't want the city to be put in a liability suit."

After everyone agreed Alexander needs a new firetruck, Gray brought up the issue of Amendment 78 of the Arkansas Constitution. Amendment 78 limits a city or county to taking on any type of debt for more than five years.

"For the purpose of acquiring, constructing, installing or renting real property or tangible personal property having an expected useful life of more than one (1) year, municipalities and counties may incur short-term financing obligations maturing over a period of, or having a term, not to exceed five (5) years," the Amendment states.

Also included is a definition of “Short-term financing obligation.” "[A] debt, a note, an installment purchase agreement, a lease, a lease-purchase contract, or any other similar agreement, whether secured or unsecured; provided, that the obligation shall mature over a period of, or have a term, not to exceed five (5) years."

Speaking to Police Chief McCormick Gray said, "I know you and I discussed at one point you could not, a city could not take out a loan that was going to be more than five years, but the legislature has passed an Amendment 68 [78] of last year."

"And we have the documentation in hand," McCormick said.

We requested a copy of the "Documentation" that shows how the Arkansas House and Senate amended the State Constitution without bringing it to a vote of the electorate. As of this writing we have not received it. We are also waiting for a comment from the Arkansas Municipal League, which promotes and interprets laws involving Arkansas municipalities.

We did find Senate Joint Resolution 14, which does propose a change to Amendment 78. However, it ultimately died in committee.

According to information provided on the Arkansas Legislative website, SJR-14 was sponsored by Senator Kim Hammer (R), Senate District 16. It was filed 2/8/2023. On that same day SJR-14 was, "Read first time, rules suspended, read second time, referred to State Agencies & Govt'l Affairs-Senate." On 5/1/2023, "Died in Senate Committee at Sine Die adjournment."

The title of SJR-14 is, "AN AMENDMENT TO THE ARKANSAS CONSTITUTION TO AMEND ARKANSAS CONSTITUTION, AMENDMENT 78, § 2, TO ALLOW ADDITIONAL OPTIONS FOR THE FINANCING OF FIRE EQUIPMENT."

Paragraph two states, "That the following is proposed as an amendment to the Constitution of the State of Arkansas, and upon being submitted to the electors of the state for approval or rejection at the next general election for Representatives and Senators, if a majority of the electors voting thereon at the election adopt the amendment, the amendment shall become a part of the Constitution of the State of Arkansas."

The only section in SJR-14 is Section 1. It does not, however, state any specific changes such as increasing the five year limit of a loan to ten.

"SECTION 1. The purpose of this joint resolution is to amend Arkansas Constitution, Amendment 78, § 2, to allow additional options for the financing of fire equipment."

The annual Legislative Audit is about to begin. The auditors do not take kindly to violations of State financing laws, much less the State Constitution.

As to the final vote; Griffin, Littlejohn, Gray, and Pollard voted "Yes." Smith voted "No." With Staton, Timmerman and Wilson absent they too counted as "No" votes. That left Mayor Herrmann who voted "Yes" breaking the tie.

Alexander Special Meeting to discuss purchase of "New" firetruck

Three members of the Alexander City Council have scheduled a Special Meeting for Monday, June 5 at 6:30 PM. The meeting has been called by council members Gina Thomas-LittleJohn, Wayne Smith and Angela Griffin.

According to an E-mail sent out by Griffin, the purpose of the meeting is, "[T]o discuss the proposal of acquiring a brand new firetruck." Under state law, since this is the only item on the agenda this will be the only topic of discussion.

The meeting will be held in the courtroom at the Alexander Municipal Complex. The public is invited to attend.