By Bradly Gill
News Editor
A former alderman and current business owner is questioning the transfer of funds from the Advertising and Promotion Commission to the city of Camden’s General Funds, as voters head to the polls to decide the fate of the A and P tax.
Danny Glaze told the Camden News, “On their spreadsheet they have $100,000 going to the city . The city’s supposed to get a certain percentage of what the yearly income is, not whatever is in the fund or this that and whatever…I just don’t think that’s right.”
Glaze also expressed frustrations in dealing with the AandP commission and city. “Nobody can come up with a solution in black and white about how things are supposed to go other than, ‘Well, it’s a state guideline that judges all this.”
An October Statement of Revenues and Expenditures for the AandP Commission shows $100,000 transfer to the general fund of the City of Camden.
At August’s City Council meeting, Alderman L.E. Lindsey asked about a transfer of $200,000 from the commission to the city, which had only been partially made and was budgeted for the 2022 operating budget of the city.
City Treasurer Lauren Robertson stated that at an earlier AandP meeting, the board decided to only provide half the budgeted amount.
“I don’t know that is the way that works. If they gave us a number of $200,000 and we approved the budget for $200,000 can they arbitrarily pull that?” Lindsey asked.
City Clerk Donna Stewart said Tidwell stated to her, “If (they) want the other $100,000 someone from the council should come to ask for it.”
At the AandP meeting, McDonald said , “They’ve asked me to present this to A and P and bring the answer back to them.”
AandP Commissioner Connie Cox stated, “My thoughts on this are, for the last 10 years, our average (budget) for parks from the restaurant tax has been $215,000 a year. I don’t feel like the intent of this tax was to give half the money back to the city to upkeep. I think the intent of this money is to go out there and create tourism and increase the sales tax, which then goes to the city.”
Commissioner Travis Daniel agreed.
“If we don’t make but $200,000 a year and they’re asking for all of it, even half of it is a hard pill to swallow,” he said.
No recommendation was made and McDonald’s request died on the table.
Arkansas law states, “(1) Such taxes shall not be used:
“For general capital improvements within the city; For the costs associated with the general operation of the city; or For general subsidy of any civic groups or the chamber of commerce.
However, the advertising and promotion commission may contract with 5 such groups to provide to the commission actual services that are connected with tourism events or conventions; “
City Attorney Michael Frey stated, “It all goes to the A and P commission, there’s not a set amount that would, I guess, that would go the city.
“The commission decides how to spend them. One of the ways the commission is allowed to spend them is on park upkeep, that’s how that ended up being transferred to the city. It doesn’t really go to the city general fund it only goes to park maintenance. It’s a restricted way of doing it. You can’t use AandP for streets or police department salaries.”
Catherine’s Bistro owner Christy Glaze, wife of Danny, gathered signatures on a petition to repeal the tax, which was submitted to the County Clerk to be added to the November general election ballot.
“The Camden Advertising and Promotions tax was not a tax that the citizens of Camden voted to collect, instead it was voted in by the City Council under the direction of Mayor Chris Claybaker, some 20 years ago. Not only were we as voters not allowed to vote on whether we wanted to pay this tax, but it had no sunset clause, which means NO end date,” Glaze said in a written statement. “I was appointed to the AandP Commission not long after I started Catherine’s Bistro. I regularly asked for a copy of the bylaws. After about 6 months I resigned, due to the fact that no one at that time could show me in writing the rules and regulations of what the money being collected was supposed to be used for.”
According to the City of Camden’s website, the A and P Commission gets its funding from a 1% tax on “gross receipts received by restaurants, cafes, cafeterias, delicatessens, drive-in restaurants, carry out restaurant, concession stands, convenience stores, grocery store restaurant and similar businesses from the sale of prepared food and beverages for on or off-site consumption.”
A 3% tax on gross receipts from “leasing or otherwise furnishing hotel, motel or short-term condominium rental or party room facilities for profit” also goes towards the AandP Commission’s funding.
The AandP funds can be used for advertising the city; construction, maintenance and improvement of tourism centers; operation of tourism-oriented facilities; and other public recreation facilities. Those funds can’t be used for general capital improvements, the general operation of the city or subsidizing civic groups or the Chamber of Commerce, according to the city website.
“Camden is currently tied with Forrest City on having the highest city tax rate in the state of Arkansas,” Glaze’s statement continues. “I felt the need to stand up for what I personally feel is an unnecessary tax on our patrons, and one that has failed to benefit a number of small food establishments collecting this tax in our city. So, after complaining about collecting this tax and paying this tax every time I dine out within our city, I decided to do something about it and give the citizens, what should have been done 20 years ago, the right to vote on whether they want to continue to pay this never ending tax. My petition asks that the AandP tax be put to a vote on the upcoming November Election for the people living in the city limits to vote on whether to continue to be taxed the AandP food and hotel tax.”
At the Tuesday, August 30, meeting of the Advertising and Promotion Commission, the group voted to approve the production of signage up to $1,000 to be placed at various areas that have been constructed by AandP funds. Areas include the Splash Pad at Carnes Park and The Trace walking trail.
“I think in addition to doing the signs on the different entities we fund, we could have some of the businesses put a sign in their window that says ‘We support the AandP tax.’ We need to show that it is being supported by the community,” AandP commissioner Connie Cox said at the meeting.
