In the story recently published by SRC relating to the Warren City Council Meeting conducted December 11th, it was reported that the city council adopted the 2018 budget. Inclulded in that budget was funding for three service contracts. Even thought the funds were allocated in the budget, the council members had to approve each contract separately. The amount of each contract was not listed in the story.After looking into each contract the following information is made available:
1. Contract with Bradley County Chamber of Commerce calls for the city
to pay the Chamber $24,000.00 for economic services rendered and for
promotional work on behalf of the city.
2. Contract with Bradley County Pink Tomato Festival Committee calls for the city
to pay the Festival Committee $2000.00 for beneficial services performed to implement
the 2018 Tomato Festival.
3. Contract with the Bradley County Economic Development Commission calls for the city to pay
the BCEDC $75,000.00 in monthly installments during 2018 for work performed to recruit
industry and jobs to the area. The contract does allow the city to terminate the contract with
30 days notice.
The $75,000 figure is an increase from $60,000 the city has paid per year for the past few
years.
Going back a number of years, the city has paid as much as $150,000 per year. The city
council reduced the amount paid several years ago.
The BCEDC is a not for profit entity set up under state law to work on job recruitment and
economic development for cities and counties. They are allowed to raise private funds
through dues and other means. The building the organization is housed in is the old Arkansas
Power & Light ( Entergy ) office. The building was donated to the BCEDC by the power
company. The Executive Director is an employee of the BCEDC and the salary is set by the
BCEDC Board.
State law does not require the city to contract with the BCEDC, but provides that option.
A number of cities in Arkansas use economic organizations to recruit. Some use other
methods.
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