CONWAY’S Sales Tax Rededication: Why it mattered to the Chamber
Conway voters overwhelmingly passed the quarter-cent sales tax rededication in a special election held Tuesday, Feb. 14.
Each of the four city bond questions passed by a 2-1 margin, and 2,117 ballots were cast — more than twice that of the unsuccessful May 2011 special election.
The Conway Area Chamber of Commerce Board of Directors endorsed the measure at their January board meeting. The Chamber played an active role in organizing the “4 the Love of Conway” committee. President/CEO Brad Lacy said that the Chamber’s support of the sales tax rededication was part of its mission to establish and execute the community’s vision. “The passage of the sales
Chamber Plans Membership Event APRIL 17-18 Conway Area Chamber of Commerce is hosting its third membership event April 17-18. Similar to years past, Your Chamber Connection Р a Texas-based company specializing in improving membership and membership participation for chambers of commerce Р will help facilitate the event. The most recent membership event took place in 2010 and added 223 new members in less than three days. The first membership event for the Conway Chamber was in 2007 and added 388 new members. The record growth during the membership events helped position the Conway Area Chamber of Commerce as the fifth largest chamber in Arkansas based on membership number, according to information in a ranking by Arkansas Business. Perhaps what is even more important than new member recruitment is member retention. The Chamber offers a suite of business-to-business and targeted consumer opportunities for its members. “While this membership event will help the Chamber achieve future growth, we aim to make sure that the relationship we have with our members is a mutually beneficial one,” said Lindsay Wygal, vice president of member services. “Chamber members have access to a variety of products and services that can positively impact their business, and we’re constantly looking for ways to enhance our offerings.” The Chamber is seeking volunteers to assist with the membership event. Those interested can email Wygal at Lindsay@ConwayArkansas.org or call 501327-7788. 4 | FAULKNER COUNTY BUSINESS JOURNAL
tax rededication was a good first step in moving the city toward some of the goals outlined in Conway2025, particularly those under the “Keep Conway Safe” sector group,” Lacy said. Conway2025 is the Chamber’s long-range strategic plan for the city. In April 2011, the City Council adopted the plan as the “official strategic vision for the city of Conway.” The City Council has com-
mitted to modernize the fire truck fleet, invest in new digital radios for the fire department, and create regular annual funding for police cars upon approval of the rededication. In Conway2025, establishing a capital budget for public safety and equipping the fire and police departments with a well-maintained fleet of vehicles are two goals that will be addressed because of
the passage of the sales tax rededication. “We are blessed to live and work in a place like Conway, and we have a responsibility to see this plan through,” Lacy said. “The rededication of these bonds will help the city run more efficiently. “It was a necessary and critical first step towards achieving bigger and better things for Conway.”
Arkansas Economic Orgs Unite to Fight Proposed Tax Increase Eleven Arkansas economic development organizations in six counties came together this month to unveil matching resolutions opposing the proposed increase of the severance tax on natural gas. “Together these organizations represent more than 5,000 Arkansas businesses,” said Jamie Gates, senior vice president of the Conway Area Chamber of Commerce. “These communities can testify firsthand to the broad and positive economic impact of the natural gas industry. But they also know it’s a competitive industry and one Arkansas cannot afford to take for granted.” A proposal to raise the severance tax by 400 percent is currently in the signature-gathering phase to be placed on the November ballot. The Arkansas legislature significantly raised the severance tax in 2008, which currently collects more than $50 million from Arkansas companies and royalty owners. The organizations formally opposing the increase say that an additional increase will cost Arkansas jobs, revenue and its position within the industry.
Conway officials meet with the Searcy Chamber during a 500 mile tour opposing the proposed increase to the Arkansas severance tax on natural gas.
“Arkansas has weathered the recession as well as it has almost solely due to the natural gas activity,” said Faulkner County Judge Preston Scroggin. “To try to pull an additional $200 million in taxes from Arkansas companies, land owners and small businesses in this economy is foolish by any standard. “If passed, it will cost Arkansans jobs and money,” Scroggin said. The resolutions state that the proposed changes to the current severance tax law would result in a rate “among the highest in the country.” Many are afraid that the proposal will run off companies and their employees at the worst possible time.
“Natural gas exploration has been one of the few bright spots in an otherwise difficult economy,” said Rich Moellers, chairman of the Morrilton Area Chamber of Commerce board of directors. “The Natural Gas Severance Tax Act proposed by Mr. Nelson would erase the industry’s margins and result in good companies moving operations to other parts of the country where they can make money and provide jobs. This bill is a jobs-killer.” Earlier this month, the Conway Chamber led an awareness tour that included six stops from Searcy to Fort Smith educating voters, public officials and the media about the negative economic impact of the potential increase.
Conway Economy at a Glance Unemployment Rate December 2011 US ....................................8.5% Arkansas............................7.7% Faulkner County .............. 7.1% Conway..............................6.1% Labor Force December 2011 Conway Employed........................26,493 Unemployed......................2324 Total................................28,817 Faulkner County* Employed........................52,800 Unemployed......................4025 Total................................56,825 *Includes Conway Sales Tax Collections Conway- YTD November 2011......................$20,045,396 2010......................$19,728,889 Percent Change 1.6% Conway -Annual* 2010......................$21,868,102 2009......................$20,825,010 Percent Change 5.0% *Tax Rate 1.75 Faulkner County - YTD Nov. 2011........................ $7,445,249 2010........................ $7,068,618 Percent Change -6.1% Faulkner -Annual* 2010........................ $7,834,226 2009........................ $7,731,691 Percent Change 1.3% *Tax Rate 0.5% Restaurant Sales* Annual Sales 2011....................$151,462,797 2010....................$139,864,203 2009 ...................$130,911,970 Percent Change 2010-11 8.3% Annual Sales *Includes mixed drink sales Hotel Sales Annual Sales 2011......................$18,662,136 2010 .................... $17,590,242 2009......................$16,404,114 Percent Change 2010-11 6.1% Building Permits Conway Single Family Residents January 2012........................... 7 permits 2011........................... 6 permits Total for the Year 2011.......................153 Permits 2010 ..................... 223 Permits 2009 ..................... 259 Permits Percent Change 2010-11 31.4% Average Construction Cost* January 2012........................... $215,000 2011........................... $328,353 Percent Change -34.5% *Not including land or lot improvements
Average Square Footage* January 2012..................................3002 2011..................................3409 Percent Change -34.5% Total for the Year 2011.................................2,814 2010.................................2,722 2009.................................2,615 Percent Change 2010-11 3.4% *Total under Roof Lottery Sales Faulkner County January 2012........................$1,337,499 2011........................$1,404,002 2010........................$1,520,210 Annual 2011......................$16,768,687 Total State January 2012......................$35,720,403 2011......................$39.663.372 2010......................$40,187,052 Annual 2011 ...................$484,879,701 2010....................$459,916,256 Annual Per Capita........$166.31 Natural Gas Severance Tax Distribution February 2012 Faulkner County...........$12,517 Conway.........................$15,223 Annual Faulkner County 2011...........................$204,052 2010...........................$171,543 Conway 2011...........................$254,822 2010...........................$221,225 Wellhead Price per MCF* November 2011 ................................$3.35 2010 ................................$3.34 2009.................................$3.64 2008.................................$5.97 2007.................................$6.37 Yearly Average 2010 ......................... $4.16 2009 ......................... $3.71 2008.......................... $8.07 2007.......................... $6.37 2006 ......................... $6.40 2005 ......................... $7.33 2004 ......................... $5.46 2003 ......................... $4.88 2002 ......................... $2.95 *1000 cubic feet Number of Wells* Faulkner County..................308 Total in Field . ..................3,984 *As of January 12, 2011 Estimated Life Time Value of Production* Total Field.......$11,103,690,119 *As of October 31, 2011
Information provided by pulseofconway.com
the Cost of Living in Conway
BY ROGER LEWIS
The cost of living for Conway, Arkansas is 12% below the U.S. national average. The national average is arbitrarily set at 100 and Conway’s index is 87.8. A Cost of Living Index is prepared quarterly by the Council of Community and Economic Research to establish comparative living costs among communities. Data are collected for specific commodities in six areas: groceries, housing, utilities, transportation, health care and miscellaneous expenditures. The data are weighted so that housing is 28.6% and groceries is 13.6%. Miscellaneous with the most weight, 32.4%, consists of state and local sales tax, clothing, personal care items, recreation and fast food. These weights are the same as those used by the US Bureau of Labor Statistics to compute the consumer price index CPI. State income taxes and real estate taxes are not included in these calculations. Comparing the tax burden of Arkansans is a topic for a future article. The table compares Conway to selected cities in Arkansas and the U.S. nationally. The comparable salary column shows the salary one
would need to live in a community at the same level as living in Conway with a $50,000 annual salary. Average rent is for a 2 bedroom, 1-1/2 bath 950 sq. ft. unfurnished apartment, recently constructed and excluding utilities except for water and sewer. Average home is for a 2400 sq. ft. four-bedroom new home of good or very good construction. Except for Little Rock–NLR and Hot Springs the cost of living in the listed Arkansas cities are about the same. There is no surprise about California cities being expensive. As an aside, while walking down a street in San Francisco several years ago, my wife and I stopped to talk to a young couple moving out of a very modest, older streetlevel apartment. After striking up a friendly conversation with them, I asked if they would mind telling me what an apartment like that rented for. When they said $2400 a month, I responded “ouch!” The young lady said yes, that was why they were moving out of the city and planed to commute. The Council of Community and Economic Research conducts the quarterly survey for the ACCRA (American Chamber of Commerce Research Association) Cost of Living index publication. To gather data, the Council has participating organizations (usually Chambers
of Commerce or local government agencies) collect data following strict guidelines. The council lists 60 specific items and participants obtain prices from specified vendor types. Approximately 300 cities across the nation participate. Cities that participate must be within a metropolitan statistical area or have a population greater than 35,000 in a county with more than 50,000 people. Whereas the ACCRA cost of living index is designed to compare cost of living among urban areas, the US Bureau of Labor Statistics Consumer Price Index (CPI) measures the change in cost of living quarterly for the entire U.S. The ACCRA cost of living index is recognized by the US Census Bureau, US Bureau of Labor Statistics, and The President’s Council of Economic Advisors. It is often referenced in their publications. You can obtain comparisons among cities by going to the Pulse of Conway website (www.pulseofconway.com). Select cost of living under the Business Data tab. I thank my friend Chris Spatz for editing and helping me with this article. More information on building permits and real estate sales can be found at Pulse of Conway website. pulseofconway.com.
Cost of Living, Comparable Rent and Home Prices for Selected Cities
Composite Index* Comparable Salary
Conway
Fayetteville
87.8
$50,000
85.2
48,519
86.5
Fort Smith Jonesboro
87.5
Hot Springs
Little Rock-NLR Memphis TN
96.5 95.8 86.0
San Jose, CA
150.5
St. Louis
91.2
San Francisco
162.9
Dallas, TX
96.3
Houston TX
National Average 1
*National average set at 100
89.9
100.0
49,260 49,829 54,954 54,556 48,975
Avg. Rent $542 580 460 564 626 719 721
Avg. Home
$236,343 223,306 232,940 240,814 253,967 253,330 195,115
85,706
1,729
713,145
51,936
778
202,396
92,768 54,841 51,196
56,948
2,518 738 892
839
796,762 207,192 224,736
285,990
FAULKNER COUNTY BUSINESS JOURNAL | 3
New Medical Clinic Offering ‘Health for All’ Opens in Conway
According to the County Health Rankings project, nearly one out of every four Faulkner County adults is uninsured. While a lack of health insurance coverage can be a significant barrier to accessing necessary medical treatments, a new health care provider in town promises “Health for All” – regardless of ability to pay. ARcare operates more than 30 locations across the state and has provided health services to insured and uninsured Arkansans for more than 20 years. In January of this year, the health care provider opened its first location in Faulkner County. Its 6,300square-foot facility is located at 1500 Museum Road in Conway. ARcare’s Conway location offers primary care and preventive services to people of all ages – from infants to senior adults. Other programs and services include case management, health education and outreach, and referral services. Dr. Steven Collier, family practitioner and CEO of ARcare, said that patients range from those with insurance, those with not enough insurance, and those with no insurance at all. “ARcare is a broad-based, comprehensive operation that accepts everyone,” Dr. Collier said. “Although we are not a free or charitable clinic, we are able to offer discounted rates so that all Arkansans can receive the care they need. “We are open to everyone – from the richest individuals in town to the less fortunate. We have top quality care at ARcare, including a full-time physician, nurse practitioners and laboratory services,” he said.
ARcare Mobile Unit: ARcare’s mobile health unit will provide medical care to children enrolled in the CAPCA Head Start Centers in Faulkner, Cleburne and White counties.
For those who cannot pay for health services, ARcare offers discounted fees on a sliding-scale based on income. ARcare also accepts private insurance, Medicare and Medicaid. In addition to affordable medical services, ARcare offers a prescription medication assistance program to help patients get the medicines they need at a price they can afford. “We have a model that works well as far as the way we provide services,” Dr. Collier said. “Through special programs that the state has and the federal government has, we have the opportunity to see patients no matter their financial situation. We also work with local hospitals and pharmacists as part of our prescription medication assistance program and our referral services.” ARcare also receives funding through the Arkansas Family Health Foundation. This fundraising arm of ARcare was
4 | FAULKNER COUNTY BUSINESS JOURNAL
established in August 2010 “to foster and fund education, wellness, economic development and transportation-related initiatives across Arkansas.” Alex Collier executive director of the Foundation and director of corporate properties at ARcare, said that although ARcare’s main focus is family practice and primary care, the health organization aims to deal with the entire person. “Through gifts to the Foundation, ARcare is empowered to address social concerns such as hunger, literacy, early childhood learning, mental health, dental health, and AIDS and HIV,” Collier said. “We plan to have a special focus on education in Faulkner County and have signed a practice agreement with CAPCA [Community Action Program for Central Arkansas] so we can work with their Head Start Centers.” The Foundation has received a $250,000 contribution
from the Walmart Foundation’s State Giving Program to assist with the purchase of a new mobile clinic. ARcare’s mobile health unit will provide medical care to children enrolled in the CAPCA Head Start Centers in Faulkner, Cleburne and White counties. Alex Collier said that ARcare is still working to identify additional partnerships in Conway. “We want to partner with other organizations in Conway who are also focused on having a healthier community and who can help us identify the city’s greatest need and meet it.” Although there is no shortage of first-rate medical facilities in Conway, ARcare hopes it can help make the community even better. Robbie Wills, attorney-at-law and principal of the Wills Law Firm, provides legal representation to ARcare and assists with community relations. The former speaker of the Arkansas House of Representatives said that ARcare’s
presence in Conway is mutually beneficial to the health organization and to Faulkner County. “Although Conway is blessed with good quality, affordable health care, we all know that there are always gaps. And there are always those who fall into those gaps,” Wills said. “So when Dr. Collier shared with me ARcare’s plans to come to Conway, it made a lot of sense. I believe that this is a great opportunity for health care to be just that much better in Conway and in Faulkner County. “This is the kind of organization we want in our county and in our community because they do the right things the right way.” ARcare in Conway is accepting appointments and also accepts walk-in patients. For more information about ARcare or to schedule an appointment, visit www.ARcare. net or call 501-625-0097.
Conway site OF Chick-Fil-A LEADERCAST
The Conway Area Chamber Annual meeting will be held Thursday, March 8th at UCA. The event brings together more than 900 members of the Faulkner County business community.
Highway Commission Chair to speak at Annual Meeting
The Faulkner County business community’s biggest night is just around the corner. Over 900 business owners, employees and area leaders will gather at UCA on Thursday March 8th to celebrate the growth of their local economy. Madison Murphy will be the featured speaker in a conversation with KTHV’s Melissa Dunbar-Gates. Murphy will talk about his experience at the highest levels of business
and public service. Murphy currently serves on the board of two publicly traded companies and has more than 30 years experience in the energy, timber and real estate industries. Murphy is also the current chairman of the Arkansas Highway and Transportation Department and sits on the Hendrix College Board of Trustees. Chamber President Brad Lacy says the event is an opportunity to recognize “all of the good things going on in Faulkner County.” “Annual meeting is obvi-
6 | FAULKNER COUNTY BUSINESS JOURNAL
ously an important night for our organization. But I hope people leave the event feeling energized and ready to take on Conway’s future challenges.” Attendees also leave with an annual report of 2011’s economic and community development efforts. Another focus of the night is recognizing outstanding businesses, organization and individuals that contribute to Faulkner County’s economic success. Award winners in a number of business and civic categories will be announced. Annual meeting attendees
are also the first to hear about some of the exciting things planned for 2012. Individual tickets, tables and sponsorships are still available. However, Lacy says that if you want to attend you better act fast. There is already a waiting list for individual tickets. “The event sells out every year. It shows the energy of our membership and our community’s desire to congregate and recognize how blessed we’ve been.” Individual tickets start at $75. Tables of eight are $600. For more information call the Chamber at 501.327.7788.
On May 4th, Faulkner County residents will have a chance to hear from some of the most well known figures in sports, entertainment, journalism and business. The event is the Chick-Fil-A LEADERCAST and the Conway Chamber is hosting a broadcast of the one-day leadership development program. Conway Chamber of Commerce Vice President of Membership Services Lindsay Wygal says that the event is a unique opportunity to get insight into the leadership habits of some of the country’s highest achieving personalities. “I think any aspiring leader who attends will leave with new skills or ideas. The diversity of speakers, the setting and the materials all add up to a fun and beneficial day of personal development.” Speakers during the oneday event include: Denver Broncos quarterback Tim Tebow, leadership and management expert John Maxwell, Burberry CEO Angela Ahrendts and many more. Chick-Fil-A LEADERCAST is in its 12th year. More than 125,000 participants are expected to attend or watch a broadcast of this year’s event. Wygal hopes to have 300 attendees at the Conway event. “Almost 100 participants have already signed up for our event. Everything from large corporations to schools and small business.” The Conway LEADERCAST will be held May 4 from 8 a.m.-5 p.m. at Fellowship Bible Church. The early bird registration deadline is March 1st. Registration is $65 and includes materials and lunch. After March 1st registration is $75. Seating is limited. To register, email Lindsay@conwayarkansas. org or call the Chamber at 501.327.7788.
40
6 Ar-3
65
5S
40
Chamber organizes DC fly-in
40
365
TOP 5 RESIDENTIAL home sales 286
Old Morrilton Hwy
Gentry Lake
64
Robins Lake
Days Lake
65
Sk 65
Cadron Valley Country Club 319
5205 Lost Canyon
65
64
A group of area business leaders and elected officials delivered a local agenda to the nation’s capital 266 this month during the Conway Area Chamber’s annual visit to Washington DC.
Gatlin Park
Salem Rd
Donaghey Ave
Hendrix College
Lake Carol-dan
t
S ce
40
Conway Chamber of Commerce Conway Oak St E Oak St
n
Pri
65
365
845 Scherman Oaks 60
Caldwell St
Laurel Park
3165 Windsong
Conway Country Club
Preston
Carter Lake
65 40
Highway 60 W
S Salem Rd
60
University Of Central Arkansas Gold Creek
and Conway 60 Development Corporat ak S60 60 Oboard tion members as well as Mayor Tab Townsell, 65County Judge Preston Fifth Avenue Park Scroggin and Quorum Court member Steve Goode met with Faulkner Airport Park County’s federal delegation and staff. Central Baptist College Senior Vice President of the Conway Dennis F Field Area Chamber of CommerceCantrell Jamie Gates said this year’s trip was focused Oak Grove Cemetery less on pursuing federal dollars and more on managing long standing projects. “Thankfully we are in the execution phase of some major projects that we’ve worked on for years. Funding is secure for the airport and the southern interchange, but that is still a process that has to be managed.” The trip included office visits with 365 senators and representative, a reception with staff and a “Chief’s Dinner” with congressional chiefs of staff and Brumley DC representatives of Conway companies. Other policy related stops included the US Chamber of Commerce and America’s Natural Gas Alliance. 365 The group’s message was a four point agenda that focused on: opening the new airport by 2014, maintaining current levels of federal highway funding, advocating for the expanded use and exploration of natural gas and creating a globally competitive business climate. “The dynamics are different every year, but our pro-business message is consistent,” said Gates. “We’re going to continue to make sure our delegation know how they can help grow Faulkner County’s economy.” Gates said the trip has evolved over years and is now a “model” for local advocacy. “I think it’s very powerful when a community can assemble leaders from the city, county, education and the private sector to all speak in concert on behalf of their interests. That team effort is why our relationships at the federal level have never been stronger.”
Dave Ward Dr 286
ider
arkr
SH
286
t er S krid
5230 Bay Town
Mountain Vi
Har
Tyl e
r St
Centennial Valley Golf Club
r
eD
ylin
Meadowlake Rd
64
Donaghey Ave
Gleason
St
5S
6 Ar-3
65
286 365
5 Pine Mountain Davis Lake
65 40
PRICE
ADDRESS
CITY
BED/BATH
SUBDIVISION
SQ. FT.
$/SQ. FT.
YEAR BUILT
$661,300
5205 Lost Canyon
Conway
4/4.5
Reserve Centennial
4,800
$137.77
2011
$340,000
5230 Bay Town Conway Tupelo Bayou Site One Reservoir
4/3
Centennial Valley
3,035
$112.03
2006
$305,900
845 Scherman Oaks
Conway
4/3.5
Scherman Oaks
3,748
$81.62
1995
$262,500
3165 Windsong
Conway
4/3
Windcrest
2,976
$88.21
1999
$234,000
5 Pine Mountain Court
Conway
4/3.5
The Summit
2,469
$94.78
1992
FAULKNER COUNTY BUSINESS JOURNAL | 7 Carter Lake
Preston
40