City Director At-Large Position 7 is the only contested municipal election in Fort Smith in the 2014 general election. Former City Director Don Hutchings and Parks and Recreation Commissioner Sherry Toliver are candidates for the position.

Each candidate was provided a list of six questions by The City Wire related to ongoing issues within Fort Smith city government and policies each candidate would like to pursue if elected to the city's Board of Directors.

● What are a few things you will seek to accomplish in a four year term on the Board of Directors?

Hutchings:"I am honored & humbled to invest time & energy in the future of our great city. I will work hard for new jobs & a stronger economy in Ft. Smith. Our citizens are very dedicated & have a great work ethic. New companies are wise to check out our people. Their level of excellence is amazing. We must promote this more & tell our story across the nation. True Grit is really who we are."

Toliver: "As City Director, I will seek to improve the economic environment in Fort Smith.  I'm committed to supporting small and large businesses and responding to their needs, especially as a key component of downtown revitalization.  From my experience as a businesswoman, I know that growing our economy is the key to improving opportunities for everyone in Fort Smith.  

"Successful recruitment of high-paying industries to Fort Smith also involves improving the amenities available to families and young people.  Studies consistently show that cities with interconnected networks of bike paths, trails, greenways and parks are extremely attractive to businesses when relocating.  I will continue efforts to revitalize and beautify our city to make it both more enjoyable for those who already live here and more attractive to prospective businesses.  

"As a member of the Fort Smith Comprehensive Plan Steering Committee and the Parks & Recreation Commission, I've helped plan our city’s future.  I look forward to implementing those plans as City Director."

● What are the biggest challenges facing the city of Fort Smith that can be addressed through city government?

Hutchings:"City government has a big impact on what new business comes to town & which ones stay.  Serving five years on the Planning Commission taught me so much about opening our doors to economic development."

Toliver:"As last year’s Comprehensive Annual Financial Report indicated, unemployment rose again in 2013. Likewise, sales tax revenues fell in 2013. Thus, the biggest challenges facing our city continue to be job creation, economic development, and revenue generation.

"Restoring faith and trust in city leaders also remains a challenge. Our city faces a number of legal and public relations issues. I support transparency in all areas and promoting proper auditing of city billing records to ensure that taxpayer resources are well managed.

"Fort Smith’s current budgetary constraints pose a substantial challenge. Paying competitive salaries to law enforcement and firefighters is essential. While these challenges may appear daunting, I have faith that Fort Smith’s future is bright if we are willing face these challenges proactively and work together to find real solutions."

● How do you propose fixing the funding shortfall in the police and fire pension contribution fund?

Hutchings: "We need to get the state legislature to assist us. Our police & fire pension is a huge challenge, but one that we can solve. They deserve it, & will get it. It may take some tightening of our budget to see this happen."

Toliver: "Fort Smith is not the only Arkansas city facing a funding shortfall. Unfunded pension liabilities are on the rise around the country, due to complex demographic and economic factors. As a result, numerous experts have examined the key issues of fairness and sustainability.  

"Fort Smith does not have to reinvent the wheel to find solutions.  We can seek guidance from the Arkansas Municipal League. We can look at success stories from other states. Successful pension reform strategies frequently involve creation of a reform coalition, including representatives of key stake holders. To ensure transparency, cities often submit their coalition’s pension reform proposal to voters for approval.  

"As City Director, I will work with my colleagues on the board and key stake holders to establish a pension reform coalition. By 2016, when state mandates will require detailed reporting of unfunded pension liabilities, we need to develop a plan to reduce and then eliminate unfunded liabilities and ensure sustainable pension funding for the future."

● Is there any circumstance in which you would be in favor of a tax increase for Fort Smith residents? (Please explain your response.)

Hutchings:"No, tax increases never grow a strong economy, but tax decreases due. When I served on the board previously, it was a great delight to lower the monthly sanitation rate by $1.10. That might not seem like much to some, but it sure helped our elderly & those on fixed incomes."

Toliver: "No, thank you. Fort Smith already has higher sales taxes than 86.3% of Arkansas cities and counties. See www.tax-rates.org/arkansas/fort_smith_sales_tax. Our businesses have to compete with merchants in surrounding areas and internet providers. Additional taxes would burden local businesses and drive consumers—and jobs—elsewhere.

"Arkansas is surrounded by states with many preferable tax provisions. For example, Texas and Tennessee residents pay no state income tax. Oklahoma taxes capital gains at zero percent and excludes capital gains derived from state property. Texas does not tax corporate net income. Oklahoma, Missouri and Louisiana allow a deduction for domestic production activities. See http://www.jonescpa.com/Overview-of-State-Taxation-Arkansas-and-Neighbor.... In terms of competing economically with our neighbors, tax increases can have negative unintended consequences.    

"To foster a competitive business environment, we need to govern smarter. We should take a good look at where and how our money is currently being spent. Sometimes the problem is not in how much money you have, but in how you manage what you have."

● The city could face a lawsuit by the Department of Justice over violations of the Clean Water Act. What is your view on the city's efforts to be in compliance thus far and is there anything more the city could have done to keep the DoJ at the negotiating table?

Hutchings: "Ft. Smith has worked diligently for years to adhere to the Justice Department's demands. The Clean Water Act is important, & we have invested over $200 million to comply with their orders. There is still much work to do, but we have to stay in negotiations."

Toliver:"Fort Smith’s clean water problem has been with us for decades. As Arkansas’ second largest city, Fort Smith has a duty to continue compliance efforts pursuant to the Clean Water Act. Allowing flaws in our sewage system to contaminate local waterways should be unacceptable to all residents of the Natural State.

"City leaders must step up to pay for needed improvements in our antiquated sewer system or face expensive legal action and stiff penalties."

● How do you feel about a possible change in the form of Fort Smith government?

Hutchings:"Our citizens voted in this form of government. It is not perfect, but gives great representation to all. Each of our four wards has their own director. Three other directors answer to the entire city.  Our administrator is to be the 'expert' in city functions. Lastly, our Mayor represents our community & is elected by our citizens. It seems to be working successfully.

"We took two years off the board to get our new Dream Center going. It would be a great honor to serve again.

I humbly ask for your vote on Nov. 4."

Toliver: "Arkansas law gives Fort Smith voters the power to change our form of government. Since 1967, we have had a City Administrator form of government. If a petition is signed by enough registered voters, elections could be held for Fort Smith voters to decide whether we want to change to a Mayor-City Council form of government.

"Currently, only our Mayor and City Directors are directly accountable to voters. They receive only nominal salaries: $10,000 per year for the Mayor and $1,000 per year for each City Director. Our City Administrator is not accountable to voters, yet he receives over $100,000 per year. While the Board of Directors has authority to enact laws and set policy, the City Administrator serves as chief executive officer for the City.  

"Under a Mayor-City Council form of government, the elected mayor serves as ex-officio president of the city council with responsibility for keeping the city government running properly. Thus, the elected mayor enforces city ordinances and ensures that city residents receive maximum benefits and services for the taxes that we pay.

"If Fort Smith voters were to adopt a Mayor-City Council form of government, we would also have an opportunity to elect a City Attorney. Currently, Fort Smith is the only Arkansas city with over 50,000 people without a salaried City Attorney. Given persistent problems with contracted legal services, voters may wish to consider this alternative."

The state of Arkansas definitely has room to improve in battling other states in the region for economic development projects and the day-to-day economy, Arkansas State Chamber of Commerce president Randy Zook said Thursday (Oct. 23).

He also declared that the next Governor needs to create a “workforce czar” or an empowered panel on Day One. Zook spoke to several regional economic development and community leaders early Thursday at the Jonesboro Regional Chamber of Commerce office.

“We are in a very tough race with other states (to compete). And we need to step on the gas,” Zook told the group.

Zook suggested that state officials work to make the state more competitive on the business front by looking at taxes, the cost of doing business, workforce training and regulations. The state was not ranked in the top 25 in a study done by Site Selection Magazine, looking at issues related to site selection and it ranked 35th in the nation in a Tax Foundation study looking at taxes, Zook said.

“We have room to improve. It is just like Alice in Wonderland where you have to run just as fast as you can in order to stay in the race,” Zook said.

Arkansas had a 1.2% job growth rate in 2013, compared to a 3.4% job growth rate in Texas, Zook said.

He also noted that Arkansas’ per capita income is $7,500 lower than the national average, with the state’s tax climate “relatively high.” However, Zook said the manufacturing sector in Northeast Arkansas has grown in recent years and the state has one of the lowest costs of doing business in the nation. Arkansas has also turned a $360 million deficit into a $200 million surplus in the state’s unemployment insurance program.

EDUCATION AND WORKFORCE
Zook said education and workforce issues need to be addressed on a statewide level, with an emphasis starting with students in school.

“We need to help young people realize you do not need a four-year baccalaureate degree to succeed in the United States economy,” Zook said. “We need to swing the pendulum back.”

Business owners also face a problem with employees who may not have so-called soft skills, Zook said. Soft skills include showing up punctually to work, dressing appropriately, and interacting with workers or customers in a professional manner.

While not mentioning names, the chamber president said a Sonic restaurant in south Arkansas recently closed because the owner could not find enough employees who were willing to go to work. However, a possible way to help businesses who face similar issues is having a good pre-employment program, Zook said.

Improving the Arkansas workforce has been discussed by both major gubernatorial candidates – Republican Asa Hutchinson and Democrat Mike Ross – on the campaign trail this year. Zook said he believes the issue must be addressed on day one, no matter which candidate is elected.

“They have to acknowledge that a crisis exists,” Zook said. “I would call for a panel to look at the issue and even create a ‘Workforce Czar.’”

Zook also discussed the vote to reauthorize the Private Option. Arkansas’ Private Option takes federal Medicaid expansion dollars and uses it in private health insurance exchanges to subsidize low income workers’ health care coverage. A bipartisan supermajority of the General Assembly passed the program in 2013 and renewed funding in 2014. He said while the program has helped reduce the number of uninsured Arkansans, the future costs of the program needs addressing.

“It is all about paying for it. It needs fine tuning, but you have to be rational,” Zook said.

The past several years – if not decades – have proven that Northwest Arkansas is a cradle for entrepreneurship. Sandy Edwards believes such entrepreneurship has a connection with the arts and has created a metro area “rich in cultural entrepreneurship.”

Edwards, deputy director for Crystal Bridges Museum of American Art, was joined by Sam Dean, director for the Amazeum, and Peter Lane, director for the Walton Arts Center, as speakers for this month’s Business Matters. The program, sponsored by the Bentonville-Bella Vista Chamber of Commerce, is geared to help chamber members stay connected to developments and issues in the region.

“I love being on this panel, I was struck by the fact that the three of us represent various stages of life for the arts in Northwest Arkansas. The Amazeum is awaiting its birth in mid 2015, Crystal Bridges is about to turn three – a toddler – and the Walton Arts Center is a mature adult,” Edwards said.

She said Crystal Bridges’ mission to “welcome all” and to “inspire others to give has been key to its wide acceptance from the world stage to remote Ozark Hills. Although Wal-Mart underwrote the admission charge to the museum, she said it has gained nearly 7,700 paid members who felt inspired to contribute via memberships. Since opening day Nov. 11, 2011, more than 1.5 million visitors have come through the doors at Crystal Bridges. Roughly 60% of those visits have been from within the region and neighboring regions. The remaining 40% comes from neighboring states and the world at large.

Edwards said the operation could not exist without the 63,475 volunteer hours given since opening. The 3.5 miles of trail around the museum logged 20,000 visitors last year, and nearly 160,000 patrons since opening. 

Some of those patrons have never been inside, but Edwards said Crystal Bridges is also about the art of nature and the trails are extension of that.

“STATE OF THE ART”
Edwards said the museum leadership was challenged to reinvent the art experience this year for patrons which culminated in the ambitious and expansive “State of the Art” exhibition that runs from Sept. 12 through Jan. 19.

“Our curator traveled for 10 months, spanning 100,000 miles to find 100 of the most dynamic working artists in the country to bring this contemporary exhibition to life at Crystal Bridges,” Edwards said.

The exhibited has logged 60,700 visitors, 33,832 in October alone. The museum’s Internet promotion of the exhibit received 2.7 million impressions and the exhibit has received coverage from the New York Times and other major national publications.

Beth Bobbitt, media relations manager at the museum, said the massive exhibit includes 227 pieces and completely fills two of the galleries, flowing out into other areas with at least pieces on display at the Bentonville downtown square. She said locating the works consumed a lot of time and energy as the curator began with a list of about 10,000 working artists in 44 states. That list was whittled down to 1,000 and visits were made to each one via 218 airplane flights and 2,400 hours in rental cars.

Bobbitt said 102 working contemporary artist were chosen for the exhibit. They range in age from 24 to 87 and were deemed under-recognized for the works. She said 70 of them are coming back during the exhibit period to present a program around their work.

“State of the Art” in one and a half months on display ranks second to the Norman Blackwell exhibit in terms of popularity from patrons, Bobbitt said.

“Families are being drawn to the ‘State of the Art’ exhibit, I think in part because of the interactiveness of the works. This expansive contemporary exhibit is exposing a whole new group of art enthusiasts to Crystal Bridges,” Bobbitt said.

WALTON ARTS CENTER
Lane said the Walmart AMP is helping the Walton Arts Center system advance art education and programing, and will for years to come. He said people often want to know why the Walton Arts Center partnered with the AMP.

“Rock pays for Bach,” Lane said in explaining his response.

He said revenue generated by the new Walmart AMP since moving to Rogers, even with an abbreviated first season, rose 400% from the prior season in Washington County. He said 17 shows in 2013 at the old facility brought in $600,000. This year 11 shows grossed more than $3 million, exceeding their expectations.

Lane said they can charge more for the contemporary concerts in the larger venue and that helps subsidize art education programs that reach thousands of Arkansas children each year through numerous outlets.

“Helen Walton, our founder, believed that the arts could be woven through traditional courses for instance teaching science through the art of dance or mathematics through painting,” Lane said.

Lane said work on renovating and expanding the Walton Arts Center in downtown Fayetteville is slated to begin in the coming weeks. He said the plans have been in place since 2010 and the overhaul will cost about $23 million, in addition to $12 million the city of Fayetteville is spending on a new parking garage that will also house the Walton Arts Center offices on the top floor. He said 100 new seats are being added to the “Star” theater, with an expansion to women’s restrooms as well as additional space backstage.
http://www.waltonartscenter.org/

“When the theater was built the shows coming in usually brought about two trucks or buses. Today they bring 10 or more and there is no room to house their stuff. The small theater we call the black box has become a storage room most of the time. Additional storage, laundry and makeup rooms are being constructed underground between the new parking deck and the main building,” Lane said.

A new outdoor garden room is also part of the plan to allow for additional gathering space for pre-and post-performance events, he added. The projects are expected to be completed in 2016. Lane said once the Fayetteville WAC renovations are complete, the board will look to Benton County for a new 2,000-seat performance center.

AMAZEUM UPDATE
A 50,000 square-foot learning lab, dubbed the Amazeum, is slated for completion in the back half of 2015. While it’s the newest art attraction to the region, the project is more than 10-years old, according to Amazeum Director Sam Dean.

The $25 million children’s discovery museum will offer learning experiences for all ages, Dean said.

“The one problem we see with adults is that they have to be moved out of the way so the kids can get to the activities,” Dean joked.

Founders Lee and Linda Scott and a host of other donors have helped to shape the exhibits planned to teach children real life processes through interactive play. Scott is a former Wal-Mart CEO and logistics leader so it’s no surprise that Wal-Mart supplier General Mills is working with Amazeum for “Lift Load & Haul” exhibit that focuses on kinetic activity and the transference of things.

Dean said a Walmart semi truck is being disassembled and then reassembled inside the building to give students the opportunity to sit in a real truck cab and from that seat and dashboard monitor they can see view activities taking place inside the trailer, which features conveyors and devices that move boxes in and out of the truck.

Dean said the expansive building itself was designed to blend into the surroundings and it essentially has four fronts which created a conundrum about where to store the trash. After much thought he said they opted to store the trash inside the building.

Not only do the Amazeum plans call for a look at future innovation but they also help to connect children to area history. One exhibit will feature pickable apple trees in a small orchard, another area explores caves and there is a canopy planned that will allow the children to safely scale the heights of the museum.

Dean said the Amazeum began has a grassroots effort to give area children a deeper learning experience in science through discovery. He said it’s a place where curiosity meets creativity and together through the interaction of children and adults there can also be a stronger sense of community.

At last count the Amazeum was roughly $1.3 million behind in its capital campaign goal of $28.5 million. Dean said they will begin selling one-year memberships Nov. 7. He said though it’s early, the memberships are good for a whole year of activities. There will be a nominal entry fee for non-members which has not been set.

Early voting numbers in Arkansas’ mid-term elections through the end of Saturday are 36.54% higher than the midterm election cycle in 2010 and political strategists on both sides of the political spectrum say the higher totals are good news for their campaigns.

According to figures compiled by the Democratic Party of Arkansas, 147,620 people had voted early last week, the first full week registered voters could cast their ballots. That is more than 36% more than the 108,114 people who had early voted the same week in 2010.

Jason Cline, a consultant with Genlink Strategies who represents a number of Republican candidates across the state including Secretary of State Mark Martin, said early voting numbers in certain counties bode very well for Republican candidates across the state.

In Benton County, a traditionally Republican stronghold, 11,235 people had cast votes by the closing of the polls Saturday afternoon. That is a 70.77% increase from 2010's total of 6,579.

"If you look at the growth in Benton, Faulkner and Saline Counties, there's been more growth since the last mid-term than we saw even in Pulaski County. Washington County will be another one Democrats could look to (as a sign of strength), but I don't think they're seeing the numbers grow because of the (number of) University of Arkansas students (who may be registered to vote in their hometowns). The numbers benefit Republicans."

In Washington County, 6,504 individuals had voted early as of Saturday afternoon, a 131.46% increase. In Crawford County, 1,777 individuals had voted early last week, an increase of 18.15% over 2010. Sebastian County last week saw 4,918 early voters last week, representing growth of 19.95% from the same period in 2010.

Robert McLarty, coordinated campaign director for Arkansas Victory 2014 - the coordinated campaign of the Democratic Party of Arkansas - said the state figures and county figures in the state's most heavily populated counties could bode well for Democratic candidates across the state. Asked why, he said it all comes down to having the right data on likely Democratic voters.

"We spent a lot of time and resources on voting analytics, scoring that voter base on the support score," he said. "We're targeting our voters in a very high tech way that we've not seen in years past (in Arkansas). We're looking at very good information and we're seeing a lot of our targets showing up."

He said in Benton County, as well as some central Arkansas counties, the party worked on get out the vote efforts for months to increase the turnout in favor of Democratic candidates. McLarty said three election cycles of effort have shown improvements that should translate into votes for Democrats, noting that 37% of voters had cast their ballots early in 2010 along with 3% of voters who cast ballots by absentee vote. The total jumped to 47% in 2012, he said.

"So I think you're looking at the low 40s for early voting. The more we push early, the less we look out to push for (our voters to show up) for election day. Every day, it's the same strategy. Calling through, knocking on target's doors and getting them to vote."

But Democrats have competition in their efforts with private groups and political action committees.

Laurie Lee, executive director of the conservative Women Speak Out PAC and managing partner of Trace Strategies, said her group had knocked on 115,000 doors in 90 days in their get out the vote efforts as they target pro-life women voters. She added that just last Saturday, the group had knocked on 3,600 doors in their efforts and have plans to hit another 10,000 doors in the next seven days.

When she looks at the early voting numbers, she said it tells her that people are hearing the message her group and others are communicating and are responding.

"I think people are just more in tune with politics. They're cognizant to what it costs when they don't vote. People want to make sure their voice is heard."

Cline said even though early voting numbers are significantly higher in some sections of the state, it remains to be seen whether that will translate into the positive numbers he, Lee and McLarty think will benefit their respective candidates and organizations.

"The great question is, is this a trend that will continue through election day or are more folks just doing early voting? Is it just more convenient since there are no lines? … My gut is telling me people are just opting for early voting versus election day. And if you look at campaigns, both sides are pushing for that. It is an easier way to put votes in the bank before election day so there's not such a scramble to (get supporters to the polls on Nov. 4)."

Memberships are the key to growth in the club format and Sam’s Club CEO Rosalind Brewer is taking bold steps to draw in more members through rewards, better merchandising and a growing list of services for what has been a challenged small business customer base.

Sam’s Club reported total net sales of $14.863 billion in the fiscal second quarter, up 2.3% from a year ago. However, the gross profit rate was dinged 0.5% in the quarter, nearly half of which related to investments in a new cash rewards program. Also, Sam’s Club inventory rose 4.7% in the quarter, a problem Brewer said was being addressed.

Wal-Mart CEO Doug McMillon has been supportive of Brewer’s changes that include reducing cost structures and raising membership fees while keeping renewals trending upward. The fee increase was the first in six years.

“She and the team are working to bring it all together to improve our performance in Sam's Club,” McMillon said of Brewer during the recent investor’s conference in Rogers (Oct .15)

Brewer said she’s happy with membership income through the first half of this year, which grew 11.4% overall, excluding fuel.

“Part of this growth is from the (fee) increase taken last May as we raised our membership rates by $5 for our base members and $10 for business,” Brewer said at the Oct. 15 conference. “While we're moving in the right direction at Sam's Club, yet there's a need to move faster and faster.”

When raising the membership rates, Brewer’s goal was to ensure that members would see added value through better merchandising efforts and a cash-back rewards program with a new MasterCard deal they hoped would appeal to business members. She said the recent launch of plus cash rewards and what has proven to be a popular instant savings programs have helped moved the membership trends forward.

“Our growth has been tampered by some of our larger core categories like business candy and tobacco. Now, historically, tobacco has been extremely important to our independent mom and pop convenience store owners. However, the rapid expansion of national convenience store chains and increased competition from dollar stores that now sell tobacco has really hurt their business,” Brewer said.

She reports Sam’s tobacco business has run negative comps over the past several quarters. Contributing to the negative business member traffic.

MERCHANDISE MOVES
Sam’s said it’s trying to create more newness in its clubs all year long around merchandising displays based on member feedback. Charles Redfield, chief merchandiser at Sam’s Club, said in August when the summer merchandise had been sold through and it was too early for fall, they promoted a new furniture line upfront in the club that was well received by members. He said they then pushed Christmas displays upfront in September, another move that resonated with members.

He said it’s not just about shifting the merchandise displays. The club also has been actively adding products to the shelves in categories like “Healthy for you.”

“Since the beginning of this year we've brought in 40 brand new items that fall into the ‘better for you’  trend and our members love them. You can see three-quarters of our incremental sales already this year have come from those new better-for-you items,” said Shawn Baldwin, senior vice president of food and beverage at Sam’s Club. “We've got 70 more brand new items coming in between now and the end of this year.”

Cindy O’Conner, vice president of home and apparel at Sam’s Club, said the healthy-for-you category is also important in apparel.

“Tangerine is one of our newest brands, and it's produced by one of our women-owned businesses who specializes in active wear. The bright colors and the [trend-right] fabrics are amazing. ... Most of these items are priced under $20,” O’Conner said.

In the home category, she said the packaging of holiday decor such as wreaths and garland are designed to be storage quality with lids so they can be easily packed away after the holidays.

PICKUP TESTS
Sam’s Club also is testing grocery pickup in its Bentonville club to fulfill online orders from members. This test is open to all members and is very similar to the pickup grocery test at Walmart’s newest format, also in Bentonville.

This is not to be confused with Club Pickup, formerly called Click and Pull, which is an online order process for business members. Club Pickup for business members is being expanded ahead of the holidays across 700 clubs, according to Jamie Iaonnone, CEO of SamsClub.com.

“We're leveraging the powerful intersection of our digital platforms, our clubs, and our associates to provide a new level of convenience and access for our members, and our members are responding to these investments. In Q2, both our direct-to-home business, our e-commerce business as well as our Club Pickup business delivered double-digit sales growth,” Iannone said.

SERVICES EXPANDED
Sam’s Club management recently rolled out a trifecta of service options geared to help small business customers save time and money.

SamsClub.com/services have been expanded to include payroll, health care and legal solutions to benefit small business owners and their employees.

“Whether they lead startups or seasoned firms, America’s small business owners are constantly strapped for time,” Brewer said in a statement. “To help, we’ve enhanced our suite of business member benefits to bring big-business benefits to small business owners at a value they deserve. Our service providers share our commitment to simplifying our members’ lives, offering affordable, innovative solutions and convenience to critical business operations.”

Teaming up with Aetna, Sam’s Club is extending access to a health care exchange run by Aetna that can quote premiums for small business owners. This service is available in 18 states to Sam’s Club business members with two or more employees.

Small business owners seeking help with payroll functions can now find solutions with Sam’s Club/Execupay service. The retailer said its members could see up to 40% savings on solutions including online payroll, time and attendance, direct deposit and automated payroll tax filings/payments.

Lastly, Sam’s said it’s offering legal solutions with the help of LegalZoom. Members could see up to 25% savings on company formation, one year membership of the LegalZoom legal plan, and access to over 160 downloadable forms” according to the company release.

REACTION
Jason Long, CEO of Shift Marketing Group in St. Louis, said he doesn’t see the health insurance and legal service specifically moving the needle at Sam’s Club but they do help position a membership as a better value overall.

“Consumers often have a ‘not that I would, but I could’ mentality with products and services. Most Sam’s members will never take advantage of the health and legal services but it’s nice to know that they could if they wanted to,” Long said

Long said ultimately the enhancements are about driving membership renewals and new member acquisition. 

“Some of these initiatives may seem small on the surface but combined they can add up to a greater perceived value and keep members renewing their membership from one year to the next,” Long said.

After several weeks of legal wrangling, a key component of the Democrats’ get-out-the-vote strategy will remain on the ballot this November.

Billionaire businessman Jackson T. “Steve” Stephens’ legal challenge to a citizen-led petition to raise Arkansas’ minimum wage to $8.50 per hour will be voted on in the November general election as Issue No. 5, the Arkansas Supreme Court ruled Monday.

The challenge was two-fold as Stephens argued that petition gatherers did not meet a July 4 deadline to submit signatures and that there were not enough initial signatures to qualify for a “cure” period, which allows an additional 30 days to collect potential voter signatures.

Many Democratic candidates, including Sen. Mark Pryor, D-Ark., and gubernatorial nominee Mike Ross, have advocated for the minimum wage proposal. Their opponents, U.S. Rep. Tom Cotton, R-Dardanelle, and Asa Hutchinson, have also said they would vote for the measure.

In a recent Talk Business & Politics-Hendrix College Poll, 69% of voters said they supported the minimum wage increase, while 26% opposed.

In handing down its decision on Stephens’ two legal challenges, the state’s high court said the group leading the minimum wage proposal, Give Arkansas a Raise Now (GARN), did present enough signatures to qualify for the cure period to extend their collection deadline. The court said the signatures did not have to be proven valid, merely present when the petitions were filed.

“While Stephens would have this court hold that fraud is an appropriate consideration for purposes of the initial-count determination, it simply is not,” the court ruled.

“To that end, our inquiry is this: Did GARN’s petition, at the time of filing, contain on its face a sufficient number of signatures pursuant to the statewide and fifteen-county requirement, such that the Secretary of State’s grant of the thirty-day cure period was proper? We hold that it did and therefore that the grant of the cure period was proper,” the decision also stated.

On the July 4 deadline petition, the court said precedent allowed for the petitions to be turned in on the next legal work day, since the Fourth of July holiday closed offices on Friday of this year and the Secretary of State’s office was closed then and over the weekend.

“The deadline for petitions, such as the one at issue here, was July 7, 2014. Accordingly, Stephens’s timeliness claim fails too. Because we conclude that neither of Stephens’s claims is meritorious, we deny his original-action complaint seeking to remove Issue No. 5 from the ballot. The mandate shall issue immediately,” the court said in its opinion.

Pryor issued a statement following the Supreme Court ruling. He noted in his press release that Stephens, chairman of the conservative Club for Growth, was the biggest contributor to his challenger, Rep. Cotton.

“This decision was the right one for hardworking Arkansas families, and now it’s up to voters to turn out and support a pay raise for 170,000 families struggling to make ends meet. I was glad to be the first elected official to endorse the minimum wage ballot initiative, and we’ll know on November 4th if enough voters agree it’s the right thing for our state,” Pryor said.

Stephens released a statement saying he was disappointed that the Supreme Court was “embracing and institutionalizing ‘fraud’ in the initiated act process.”

“We are very disappointed in this decision,” Stephens said. “Today, the Arkansas Supreme Court unanimously stated that ‘While Stephens would have this court hold that fraud is an appropriate consideration for the purposes of the initial-count determination, it is not,’” Stephens said, quoting from the decision.

“It is shameful that, according to our Supreme Court, fraud is not a consideration in this matter of public trust, and now the whole ballot initiative process is open to fraud. It is even more shocking that there wasn’t a single dissent, indicating that all 7 justices embraced this decision and its long-term implications on future generations,” Stephens said.

He also called for a judicial recall process in response to the decision.

“Decisions like this are the reasons that I chaired the Merit Selection Committee of the Arkansas Bar Association in the mid-1980s. As a political consideration, a change to a merit selection process was not possible then, and is probably not possible now. But, a judicial-recall provision as an initiated act is the most appropriate response to this and other shocking judicial decisions Arkansans have been subjected to this year,” Stephens added.

Franchise fee increases, fees for business licenses and budget cuts were just a few of the ideas thrown around during a Fort Smith Board of Directors brainstorming session Monday night (Oct. 27).

The meeting, held at the new fire station at Chaffee Crossing, came after reports of a budget shortfall in the police and fire pension contribution fund was made public. Emails from City Administrator Ray Gosack also revealed that pay raises discussed publicly for much of the last year were not financially feasible for the cash strapped city, which has seen sales tax revenues not keep pace with projections or needs. As a result, Gosack told the Board it was likely time for a "fundamental" review of how the city provides services, noting that staffing levels could be impacted.

City Director Mike Lorenz was first to speak during Monday's meeting and said the Board's priority was for a plan to be in place when budget meetings take place in November to deal with the shortfalls in the police and fire pension contribution fund. The fund is expected to go broke in 2019 with more than $1 million in deficits expected. It is expected to balloon to more than a $10 million deficit by 2022.

"We've got to address the LOPFI issue. I think there's been a long period of time that it's just been, 'Oh, it'll get taken care of.' And we're getting real close to a deadline and nothing's getting taken care of.”

He added that talk for much of the year of pay raises was "premature" considering the constraints on the city budget that were known by the city administration and finance departments. Gosack noted that the last time any sort of pay raises were given to employees was 2013, and 2010 before that.

City Director Pam Weber said there needed to be a discussion of how the general fund is allocated in order to provide for the city's financial obligations while also meeting the needs of the city's workforce.

In order to address the shortfalls in the retirement funding and the lack of resources available for pay raises, Gosack said the Board could increase franchise fees by a total of 0.25% to the state maximum of 4.25%, which would net the city an additional $400,000 in revenue each year.

He said budget cuts were also being implemented across all city departments, specifically noting that his administrative budget was being cut by $80,000 to $90,000 next year. Fleet replacements were also being delayed.

One area where the city has some wiggle room, he said, is the franchise fee imposed on cable television and home phone service, which he said could be raised to a total of 5% versus the 4.25% on other utilities mandated under state law.

"So there's (an additional) 1% available on cable TV. … If you did the additional three-quarters on cable TV, I don't know what that is, but the finance department is calculating that number.”

The city, Gosack revealed, is also not collecting a fee on business licenses. He said that was because the city had promised voters 20 years ago when the county sales tax was passed that the city would stop collecting the fee. If the city were to reverse the decision and collect allowable fees on business licenses to operate within the Fort Smith city limits, he said it would net the city an estimated $1.8 million, which could solve the retirement funding issue and possibly allow for limited pay raises.

City Director Keith Lau said he wanted to see Gosack bring options to the table on how the Board could close the gap at 100%, 75%, 50% and 25% of funding needed. But he said no matter what was proposed, it would have to be a mix of both cuts and revenue increases.

"So really the only way to solve all of our problems today would be a combination of staff reductions, tightening of the budget expenses, bumping up 0.25% the existing franchise utility fees and then adding 4% only water and sewer and sanitation," he said, noting that the latter is not imposed a franchise fee currently.

Lau further said the combination of revenue increases and spending decreases was necessary "or we're going to lose credibility with the citizens, from my perspective.”

Lorenz added, "At a minimum, it has to be equal.”

While it was not a solution to the problem to next year's budget woes, Mayor Sandy Sanders did note that the drop in sales tax revenue, he believed, could be traced to the rise in online sales and said he believed it was time for the city Board to pass a resolution supporting the federal Marketplace Fairness Act. The legislation is co-sponsored by U.S. Rep. Steve Womack, R-Rogers, and would force online retailers to collect local sales and use taxes for all sales made through the retailer which would then be remitted to the consumer's billing city.

"It costs us about $400,000 per year," the mayor added of the lost revenues due to online shopping.

A fraudulent financing scheme initiated almost 10 years ago has resulted in primary perpetrator Brandon Barber being sentenced to five years and five months in prison. Based on possible reductions in the sentence and his time served, Barber’s sentence could fall to a little more than three years.

After time served in prison, he will face three years of supervised release during which he will not be able to assume any debt of any type – including loans from family or friends – without prior approval of the U.S. Probation Office. Also during the supervised release his financial activities must be disclosed to probation officers.

A ruling on restitution is set for Jan. 5.

Barber was sentenced following a Tuesday (Oct. 28) morning hearing in Fort Smith before U.S. Federal Judge (Western District of Arkansas) P.K. Holmes III. At least 45 people attended the hearing, not including attorneys for the government and Barber.

Holmes sentenced Barber to 190 months for three counts related to bank fraud, money laundering and bankruptcy fraud. However, the time is served concurrently which reduced the sentence to 65 months, or five years and five months. The prison term is below the 8-10 years sought by the office of U.S. Prosecuting Attorney Conner Eldridge (Western District of Arkansas), and just a few months more than the 60 months requested by Barber’s attorneys Asa Hutchinson III and Asa Hutchinson.

The elder Hutchinson is the GOP candidate in the race for Arkansas Governor. He also served between 1982 and 1985 in the post now held by Eldridge.

In comments before Judge Holmes issued the sentence, Barber said his “selfishness and pride” eventually hurt those he loved the most. With his voice breaking from emotion, he apologized directly to his parents “who taught me better.” He also offered an emotional apology to his ex wife, fiance, three children and to the “Northwest Arkansas community.”

“I assure you that I take full responsibility for my actions,” Barber said as he addressed Judge Holmes – an address that included a plea to be “reunited with my children as soon as possible.”

BARBER HISTORY
Barber, once a high-profile developer during the heady days of seemingly non-stop Northwest Arkansas commercial development, was arrested March 20, 2013, on several federal charges.

Barber in July 2013 admitted guilt in various schemes to prop up his Northwest Arkansas real estate and development company between 2005 and 2009. The charges Barber plead guilty to included conspiracy to commit bankruptcy fraud, conspiracy to commit bank fraud and money laundering. The maximum sentence for all charges is 45 years, with fines maxing out at $1.5 million.

Following were the specific charges to which Barber admitted guilt.
• Conspiracy to Commit Bankruptcy Fraud
Beginning in April 2008 and continuing through Nov. 9, 2010, Barber reached an agreement with K. Vaughn Knight and James Van Doren to conceal and disguise income and funds belonging to Barber in order to hide those funds from creditors.

• Conspiracy to Commit Bank Fraud
From around August 2008 to around December 2008, barber conspired with Jeff Whorton, Brandon Rains, David Fisher and others to defraud First Federal Bank. The parties falsely and fraudulently represented the purchase prices of certain lots known as "Executive Plaza" to be higher than the actual sales prices in order to obtain higher loans from First Federal Bank.

• Money Laundering
Barber engaged in money laundering when he conducted monetary transaction of criminally derived property through a financial institution. Barber had agreed with Van Doren and Knight to conceal certain income and transactions from the bankruptcy court.

SENTENCING GUIDELINES, REQUESTS
Through his attorneys, Barber requested leniency in the sentencing. A 50-page sentencing memo submitted to the court in early August by Hutchinson III, with Rogers-based The Asa Hutchinson Law Group, details why Barber’s sentence should be set at five years. Reasons for the “downward departures” from the sentencing range include:

• Barber’s guilty plea and subsequent cooperation with government officials;

• Lesser amount of financial damage than is being alleged by the prosecution;

• A “more complete perspective” of Barber’s downfall and his life prior to committing fraud;

• His charitable contributions prior to committing fraud; and

• Comparison of “national sentencing statistics” that apply to the Barber case history.

As to the financial damage, Barber’s attorneys argue that the damage is less than $20 million instead of the more than $32.343 million argued by the prosecution.

The memo from Hutchinson III also includes several pages describing more than 40 letters from people providing background as to Barber’s “contributions to the community, his love for family and his own character.” The letters are part of documents provided to the court by Barber’s attorneys.

“These are respected and accomplished leaders and citizens who do not excuse Brandon’s conduct but do offer unique and important perspectives to the Court,” Hutchinson III noted in the memo.

U.S. Attorney Eldridge initially rejected the leniency request and supported the U.S. Probation’s Office sentencing range request of 19.5 years to almost 24 and a half years in prison. The prison term is based on a fraud amount of more than $32.343 million, and because Barber was the “leader” of a conspiracy that involved others.

However, Eldridge asked for a “downward departure” in an Oct. 22 court filing that moved the possible prison term to between 8 years and 10 years. Eldridge noted several reasons for agreeing to a reduced sentence. Those included the “defendant’s assistance and information provided after his change of plea has proven to be truthful, complete and reliable,” and that his cooperation “put him at a greater risk than that normally associated with cooperation as the defendant’s testimony at trial made his cooperation a matter of public record.”

WITNESSES FOR BARBER
It was clear early in the hearing that Barber’s sentence would be greater than the 60 months requested by his attorneys. Judge Holmes interrupted Hutchinson III as the attorney mentioned their request for the 60 months.

“Which I won’t do, I’ll tell you that right now,” Holmes interjected.

Nevertheless, Hutchinson III called three witnesses to speak to Barber’s credibility and pattern of business conduct prior to being charged with fraud and money laundering.

Lee Scarlett, a Northwest Arkansas home builder and owner of Celtic Homes, first met Barber in 1999 when Barber was a loan officer. They would eventually work together in building seven homes, and “everything went fine” and he “never had a bad experience” with Barber, Scarlett said.

Karon Reese, a Realtor who now lives in New Orleans, opposed Barber’s planned “Divinity” project that would have built a 12-story hotel on Dickson Street. However, she testified that Barber was willing to compromise with the group opposed to the hotel and eventually agreed to reduce the structure to six stories. The hotel was never built.

Reese also said Barber “did great work” as a developer and always dealt “honestly” in her interactions with properties he owned. She said she would not have driven the 12 hours from New Orleans if not for the belief that Barber is still able to “make a huge contribution to society.”

Also called as a witness for Barber was Richard Hudson, the former top lobbyist for the University of Arkansas. As part of the leniency request from Barber’s attorneys, Hudson wrote a letter that included this note: “Had the national recession not occurred, I believe Brandon would today be a highly successful and well-respected business leader in Northwest Arkansas.”

Hudson, who said Tuesday he made 15-20 jail visits with Barber, continued the theme. He said the national real estate collapse “was one of those things we didn’t see coming. ... Obviously he mishandled a financial crisis when it developed.”

PROSECUTION REBUTTAL
Eldridge followed the witnesses by saying the government does not dispute that Barber has positive attributes, but noted that his actions created “many, many residual victims,” and that ultimately Barber’s actions “reflect conduct and fraud that cuts to the heart of the local economy.” Eldridge said Barber’s story is not as simple as being a developer who suffered because of a decline in the real estate market.

“This case is and has always been about fraud,” Eldridge said, adding that the facts show an “intentional pattern” of deceit that hurt not only large banks but numerous small companies in the construction and real estate sectors.

Hutchinson III responded by saying that the “extraordinary circumstances” faced by a young Brandon Barber are relevant in sentencing considerations. He said Barber’s “motivation was not to line his pockets” but to keep his businesses going. He also said Barber’s drinking problem, a failing marriage and a child being diagnosed with a developmental disorder added to the stress of the time. Hutchinson III said in addressing Judge Holmes that the factors “are not a justification,” but should be considered.

Hutchinson III also said a long prison sentence for Barber will not deter others from committing similar white collar crimes, and would likely delay Barber’s ability to pay restitution.

THE SENTENCING
Prior to sentencing, Judge Holmes said he is not sure the full $32.343 million is the result of fraud committed by Barber, noting that some of the losses were “the result of a collapsed real estate market.”

He also said Barber did not commit a “repetitive fraud,” with his criminal actions a single response within the failing real estate market. Judge Holmes added that Barber’s actions did harm “vulnerable victims” but also harmed “sophisticated victims” like financial institutions. Judge Holmes said the governments sentencing request was “somewhat high” considering that not all facts are known to the financial amount of fraud, that Barber is a first-time offender, and the level of community support for Barber.

Judge Holmes did note that the sad reality of Barber being separated from his children will not alter his consideration. He noted that almost all cases involve children or elderly parents who may have no one else to take care of them.

“I can’t treat (Barber) any different than a drug dealer who also loves his children,” Judge Holmes explained.

Judge Holmes sentenced Barber to 60 months for bank fraud (Count 1), 65 months for bankruptcy fraud (Count 13) and 65 months for money laundering (Count 25). He also sentenced Barber to three years of supervised release for each count, with the three years also to run concurrently.

Barber faced up to $1.5 million in fines, but Judge Holmes rejected the government’s request for fines.

Judge Holmes did not release Barber, but instead returned him to the custody of the U.S. Marshals Service until his prison sentence begins. Barber’s attorneys requested his prison time be served at Federal Prison Camp in Lewisberg, Pa., which has a minimum security facility for male inmates. Inmates who have served time at the high-security facility at Lewisberg include Jimmy Hoffa, John Gotti, Henry Hill and Alger Hiss.

Judge Holmes said he did not have the authority to mandate where Barber would serve, but would include in the sentencing a recommendation for Lewisberg.

Barber’s family appeared pleased with the sentencing. Hutchinson III said he believed Judge Holmes “exercised his judgment appropriately.”

Barber’s sentencing Tuesday was the first in a round of related sentencing hearings set for next week.

James Van Doren pleaded guilty on Aug. 23, 2013 and is set to be sentenced on Nov. 3. Jeff Whorton pleaded guilty on Aug. 26, 2013 and is set to be sentenced on Nov. 5, 2013. Brandon Rains pleaded guilty on Oct. 17, 2013 and is set to be sentenced on Nov. 6, 2013.

Vaughn Knight was convicted of eight counts of bankruptcy fraud and money laundering on Nov. 18, 2013. The Court overturned the jury verdict and the case is on appeal.

The four men were accused of aiding Barber in his criminal actions.

September marked four months straight that Fort Smith sales tax collections have surpassed the same month last year, but the increase in collections has not helped the city improve its revenues enough to be even with budget projections for the year.

The city's sales taxes (1% for streets and 1% combined for water and sewer projects and fire and parks and recreation) collected $3.456 million in the September report. The figure is 6.52% above September 2013 and 3.98% ahead of budget projections for the month of September.

For the first nine months of the year, the total tax collections including the September report from the city's sales tax collections are up 1.94% but below budget projections by 0.49%. The nine month total is an improvement from August's report for the first eight months of the year, when the budget was down 1.04%.

(Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in September are from taxes collected in July and transferred by merchants to the state in August.)

Collections so far in the 2014 reporting period of the city's sales taxes were $30.086 million, up from collections of $29.515 million during the same period in 2013. The same nine months in 2012 saw collections of $29.876 million, while the period in 2011 saw collections of $29.079 million. The city sales tax for fire and parks did not begin collecting revenues until 2012.

Total collections of the Fort Smith city sales taxes in 2013 was $38.938. Collections in 2012 totaled $39.21 million, just ahead of the $38.684 million collected in 2011. The 2011 collections were 3.9% above the 2010 revenues of $37.23 million.

Fort Smith's share of the countywide sales tax in the September report was $1.333 million, which was an increase of 4.22% over $1.279 million in September 2013. The figure was also 3.73% above a budget of $1.285 million for this month.

The countywide tax generated $15.353 million for Fort Smith during 2013, up 0.49% compared to 2012 and down 1.99% compared to budget forecasts. The countywide tax generated $15.279 million in 2012, just ahead of the $15.15 million in 2011, but lower than the peak collection of $16.61 million in 2008.

The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget supports fire, police and other critical city functions. The dip in collections compared to budget estimates has resulted in city officials seeking 4% budget cuts from all departments.

"For the 9 months, the county tax is 0.02% above last year and 0.45% below budget," said city of Fort Smith Finance Director Kara Bushkuhl in an email to the city's Board of Directors.

She further reported franchise fee collections of $4.948 million as of Oct. 27, which she said was on track to meet a revised budget of $6.614 million for the year.

Property taxes collected as of Oct. 27 totaled $3.477 million to the benefit of the general fund.

"This revenue source is expected to meet the revised budget estimate for 2014 of $6,854,602," she added.

The report and its totals being flat for the year's budget comes the day after the Board met for a brainstorming session to address funding issues that could lead to layoffs and the possibility of no pay raises for city staff. In the meeting, city directors proposed raising franchise fees and cutting expenses in an effort to meet budgetary demands on the city, which include properly funding a fire and police pension contribution fund that is expected to go broke as soon as 2019.

A proposal made during a Tuesday (Oct. 28) study session of the Board could have voters deciding on reallocation of a portion of the street sales tax moneys next year to benefit the pension fund. Voters would first have to vote to renew the 1% sales tax for streets. Other questions on the ballot would ask about reallocation of funding should the sales tax be renewed.

A vote by the Board on whether to allow the ballot questions to go to voters could come as early as January 2015.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2013: $38.937 million
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2013: $15.353 million
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

As the Fort Smith Board of Directors continues searching for a solution to its budgetary woes, more ideas continue to come from the group and the latest could have voters deciding on a reallocation of an existing sales tax.

During Tuesday's (Oct. 28) study session held at the University of Arkansas at Fort Smith's Latture Conference Center, City Director Mike Lorenz proposed asking Fort Smith voters to reallocate up to 10% of sales tax proceeds from the city's 1% street tax to fund the police and fire contribution fund.

The total fund balance is expected to only be $287,792 when fiscal year 2019 begins and continue going into the negatives at growing levels for the foreseeable future, culminating in a projected negative fund balance of $10.621 million by Dec. 31, 2022.

The funding of contributions to the plan comes from a variety of city sources, according to city of Fort Smith Finance Director Kara Bushkuhl, adding that the state of Arkansas mandates all cities to contribute to retirement plans for its fire responders. Two revenue sources include millage rates of one mil each charged for the police and fire retirements, as well as funneling 10% of district court fines to the pension contribution fund. The millage rates of one mil for each retirement fund bring in about $1.378 million each, or $2.757 million combined each year. The fines contribute about $137,000 per year to the fund.

Other funding comes from a portion of the eighth-cent sales tax for the new fire station at Chaffee Crossing, with about $500,000 in sales tax proceeds contributing to retirement contributions for firefighters stationed to the new firehouse.

Police officers and firefighters are also required to contribute to their retirements. Fort Smith fire responders previously paid 6% of their salaries to retirement funds, but that changed to 8.5% in 2011.

Shortly after making the proposal, Lorenz said it would not stop the city from proceeding with the 2015 budget in a conservative manner which includes budget cuts and increasing contributions to the pension fund in order to address the coming shortfall in funding.

"It essentially cures our deficit issue," he said, adding that it was not a band aid but a real solution to the problem.

City Administrator Ray Gosack said the street sales tax brings in a little more than $20 million per year to the city. Already in 2014, the street sales tax collected $15.043 million, according to figures Bushkuhl provided to the Board Tuesday afternoon.

By allocating 10% of the sales tax to the pension fund, Gosack said the city would direct about $2 million per year at the problem that has been festering since the financial crisis of 2008 began. That year as the financial market was in a free fall, the city withdrew more from the fund to pay state-mandated pension obligations to the state retirement system for police and firefighters than it paid in. The withdrawal of funds has accelerated at an increasing rate since then, with the city expecting it to culminate in a negative fund balance in 2019.

At Monday's (Oct. 27) brainstorming session held at the new fire station at Chaffee Crossing, Gosack told the Board that the finance department had identified several different funding options to close not only the funding crisis for the pension plan, but the overall budget crisis which Gosack has said in emails to directors could mean layoffs and other cuts in city services.

Among the options he presented were raising the franchise fee on utilities by 0.25% to 4.25% total, though cable television and land line phones could be raised 1% to a 5% total fee. Just the quarter percent increase could raise as much as $400,000, he said.

Gosack also said Monday that the city is not collecting a fee on business licenses. He said that was because the city had promised voters 20 years ago when the county sales tax was initially passed that the city would stop collecting the fee. If the city were to reverse the decision and collect allowable fees on business licenses to operate within the Fort Smith city limits, he said it would net the city an estimated $1.8 million, which could solve the retirement funding issue and possibly allow for limited pay raises.

Vice Mayor Kevin Settle said even though it was possible that the Board could vote as early as January to hold a special election in the spring 2015 on the sales tax renewal which could include additional funding for the pension fund, he said the Board and the city must proceed as though the money will not come through next year.

"If we plan the budget without it and go with the plan to the voters, then it changes what we do," he said.

Stronger freight demand and lower fuel costs resulted in a profitable mix for Tonititown-based P.A.M. Transportation Services who reported another record quarter ending Sept. 30. 

P.A.M. posted third quarter net income of $5.056 million, a 111% gain over the $2.393 million recorded a year ago. On a per-share basis the profits were 63 cents, more than double the 28 cents earned in the third quarter of 2012 and well ahead of the 33 cents Wall Street expected.

CEO Daniel Cushman noted in the earnings release Tuesday (Oct. 28) that the recent quarter represents the highest single quarter of earnings per share in company’s history. He attributed the gains to heightened demand and  better operating metrics related in part to lower fuel costs.

"The current level of demand allows us to be more selective in choosing lanes which offer both driver satisfaction and higher returns. As a result, we have been able to further reduce the number of empty miles driven as well as recognize an increase in the average revenue per truck each day. These efficiency gains have a significant impact on bottom line results,” Cushman said.

He said growing the company is a priority, but admits there are constant challenges with the driver market.

“We do feel that we have a competitive advantage in the driver market because we have business that is driver friendly in terms of pay, miles, and home time as well as one of the newest truck fleets in the industry at an average age of 1.6 years old. That said, we also continue to review our driver compensation package in order to retain our current drivers and attract new drivers. Our ability to attain our driver recruitment and driver retention goals will be vital to growth in top-line revenues,” Cushion said.

Operating revenues, including fuel surcharges, increased 5.1% to $107.058 million for the third quarter, up from $100.877 million in the prior-year period. The higher revenue relates to 6,658 more loads carried in the third quarter compared to the prior year.

The trucks traveled 54.115 million miles in the quarter at a rate of $1.41 per mile. That compared to 53.131 million miles in the same period last year, at a rate of $1.39 per mile. The revenue generated per truck per day increased to $673, up from $644 in the year-ago period. Empty miles improved to slightly in the quarter to 6.65%, down from 7.06% a year ago.

Cushman said the company’s dedicated automotive business has been strong this entire year.

“The expedited division continues to improve in terms of profitability and we have experienced decreasing driver turnover. Our dedicated division is growing and the driver turnover is much lower in this division than the company average. Another driver friendly division, our Mexico division, is also growing and profitable,” he said.

P.A.M. continues to grow its logistics business which contributed $6.122 million to the total company revenue in the quarter. Segment revenue grew from $5.305 million in the third quarter of 2013.

"Although currently a small piece of our business, our logistics division continues to grow and operate more profitably as we further develop our model in order for us to offer our customers additional capacity solutions," Cushman said.

Through the first nine months of 2014 P.A.M. had net income of $11.358 million, up 145% from the $4.619 million earned in the same period last year. That equates to $1.41 per share, nearly triple the 53 cents profited a year ago.

Total revenue through nine months of 2014 were $309.222 million compared to $306.267 million in the same nine months of 2013.

"We continue to be very focused on growing the company. To this point, our focus has been to achieve that internally,” Cushman said.

P.A.M. shares (NASDAQ: PTSI) closed Tuesday at $40.53 per share, up 78 cents on the positive news. The share price has ranged from a $16.01 low to a high of $41.23 during the past 52 weeks. The share price is up 96% after opening 2014 at $20.65.

As BHP Billiton begins the difficult job of marketing its Fayetteville Shale assets, a top Wall Street analyst says prospective suitors will definitely have an advantage in negotiations with the Australian industrial giant – especially in the current low-price environment for natural gas.

Fadel Gheit, one of the nation’s top-rated oil and gas analyst, made his observations to Talk Business & Politics on Tuesday, one day after BHP Billiton CEO Andrew Mackenzie said in an investor presentation that the Sydney-based conglomerate would divest the Arkansas shale play “if it maximizes value for shareholders.”

However, Mackenzie did not elaborate on what price shareholders expect from the mature dry gas development in central Arkansas. BHP Billiton Petroleum, a wholly owned subsidiary of BHP Billiton Limited, paid $4.75 billion in cash in early 2011 to purchase nearly 487,000 net acres of leasehold and producing natural gas properties from Chesapeake Energy Corp.

The influential Wall Street oil and gas analysts at Oppenheimer & Co., said now that BHP has publicly announced its intent to sell the Arkansas properties after only 3-1/2 years in the play, “there is (likely) also a buyer at a certain price.”

“Given the low current and future gas prices, it would be a buyer’s market,” said Gheit, who is managing director and senior oil and gas analyst at the Wall Street investment house in New York City. “The Fayetteville (Shale) is a low cost dry gas, which has low risk, low cost and low price. It can still be profitable, but at low margin and return.”

At the same time, several oil and gas analysts have recently noted that the Arkansas shale play is likely reaching maturity, even though Fayetteville Shale leader Southwestern Energy Co. said last week that it topped its highest production ever in Arkansas play in the third quarter and also logged the 10 straight quarter of positive cash flow.

“We placed a total of 106 wells online at an average initial production rate of roughly 4.3 million cubic feet of gas per day,” Southwestern COO Bill Way told analysts during a recent conference call. “Two of them are in the top ten ever drilled at over 10 million (dollars) a day each.”

What also came out of Southwestern’s third quarter conference call with analysts is that the driller is quietly shifting a larger share of its production from the lower section to the upper end of the Arkansas development. In the Upper Fayetteville formation, Way said Southwestern has placed 15 wells online through the first nine months of 2014, with an average production rate of 3.4 million cubic feet a day. Three of the new wells had an average initial production rate of over 5 million cubic feet of gas per day, with the highest well touching 6.6 million cubic feet of gas per day.

“We plan to drill five additional Upper Fayetteville wells in the fourth quarter and complete them in early 2015,” Way predicted. “While it's early, we estimate that the Upper Fayetteville may span over 130,000 acres or 1,000 wells.”

The other factor that may have a major effect on the company’s capital budget and production in the Fayetteville Shale is Southwestern’s announcement on Oct. 16 that it agreed to purchase natural gas and petroleum liquids assets in the Marcellus and Utica shale plays for $5.4 billion. The seller in that deal was also Oklahoma City-based Chesapeake Energy, formerly the nation’s largest oil and gas driller that sold its holdings in the Fayetteville Shale to BHP three years ago for about the same price.

Although Southwestern has said it intends to continue making major investments in both shale plays, Wall Street analysts and investors are watching to see what actually happens. In the past week, at least five analysts covering the Fayetteville Shale leader have upgraded the company’s shares and given the driller’s stock a “buy” rating. Still, other Wall Street firms like Morgan Stanley and Credit Suisse have downgraded the company’s stock based on mixed ratings from the Marcellus deal.

“While we applaud SWN management for making a bold acquisition that plays to the company's core strength ..., we believe it comes at too high of a purchase price as the transaction looks meaningfully dilutive to our net asset value and cash flow forecasts,” said Credit Suisse analyst Arun Jayaram said in a recent research note, while lowering Southwestern one-year price target from $41 to $36 per share.

“Given rapidly deteriorating natural gas fundamentals, we believe SWN shares are poised to lag its peers, particularly with an equity overhang looming,” Jayaram said on Oct. 23.

Analysts also say natural gas prices will play a big role in fortune of pure-play natural gas drillers like Southwestern. BHP’s McKenzie noted on Monday that the company is shifting most of its capital investment in the U.S. to wet liquid plays to seek better returns with higher crude oil prices.

Gheit concluded that natural gas prices will affect how successful the near-term production in the Fayetteville Shale will be, and how high potential buyers are willing to bid for BHP’s assets in Central Arkansas play.

“Oil and gas future suggest flat prices in the next three to five years,” the Wall Street analyst predicted.

Walmart Savings Catcher, a mobile app that compares local sale prices of branded grocery items within a particular region, is being expanded to include toys and perhaps other merchandise for the upcoming holiday season.

Consumers have widely adopted the program with 33 million receipts scanned as of early October and more than $2 million returned to customers using the app since it was rolled out nationwide in August, according to Wal-Mart Global eCommerce CEO Neil Ashe.

Wal-Mart confirmed that the price comparison tool will include its top 20 toy list for this holiday season. This is effective now and will run throughout the holiday season.

“If a top local competitor offers a lower advertised price on those or other eligible items, customers get the difference on a Walmart eGift Card,” Wal-Mart noted.

It is unclear what “other general merchandise” could be added to the program during the holidays or if a Black Friday only activation can be expected. Insiders recently shared with The City Wire that the retailer has planned special uses of the tool during the holidays.

CEO Doug McMillion did not provide any details to The City Wire when asked recently about the possibilities of an expanded scope to include general merchandise during the holiday period.

His response were merely, “Thanks for the suggestion.”

UPDATED: Wal-Mart officials did confirm later that the company is exploring the possibility of matching prices between its own online and brick and mortar establishments. Store managers now have the ability to do so at their discretion, but the retail execs confirmed to the media Thursday (Oct. 30) that it is examining online price matching. The retailer gave no details except to say “it’s being discussed.”

Retail expert Carol Spieckerman, CEO of New Market Builders, said expanding Savings Catcher to include new categories makes sense now that Wal-Mart has worked out the model.

“It’s downright brilliant in advance of the holiday shopping season. Millions of shoppers have caught Savings Catcher fever in grocery and those same shoppers can be expected to remain in Wal-Mart’s shopping ecosystem as it expands the program into new categories,” Spieckerman added. “Walmart has nothing to lose and everything to gain as it retains shopper loyalty and gathers even more valuable data on customers' shopping and surfing habits during a make-or-break season.”

During the recent investor conference (Oct. 15) Wal-Mart execs were asked about extending Savings Catcher price matching to general merchandise categories. The retailer responded that many competitors increase their prices as inventory runs down, so what price should they match in those instances in those instances?

IGD analyst Stewart Samuel agreed that it’s harder for Wal-Mart to match general merchandise prices than groceries and said that hurdle could keep them from expanding to more categories.

That said, the retailer has already agreed to allow Savings Catcher for its top toy list, and, outside of electronics, perhaps no other category is featured more during the holidays than toys. The retailer isn’t bothered by that scenario.

Duncan Mac Naughton, chief merchandising officer for Walmart U.S., has said from the first announcement about Savings Catcher (March 2014) that the retailer planned to start with grocery and add other categories to Savings Catcher.

Speickerman said there is no better time than the competitive holiday season for Wal-Mart to make that move.

Fort Smith residents and citizens may have an easier time finding their way around town if a plan by the Frontier Metropolitan Planning Organization becomes a reality.

Dianne Morrison, director of the Frontier MPO, said her organization will host a meeting Nov. 4 to focus on the installation of "wayfinding" signs throughout the Fort Smith region.

According to Morrison, the idea for the signs originally came from former Rep. Ed Thickston of Alma and Fort Smith Convention and Visitors Bureau Executive Director Claude Legris.

"They originally brought it up. They came to one of our policy board meetings. And it had been an idea that we had been thinking about," she said.

The "wayfinding" signs idea the two men and the organization had been contemplating came about, she said, after the Arkansas Highway and Transportation Department reversed a long-standing policy that had prevented local signs from being placed in the department's right of ways.

With the AHTD now allowing local signs in the right of way, Northwest Arkansas was the first to move forward with the so-called wayfinding signs last year. Eureka Springs was the first Northwest Arkansas city to see the erection of the signs, with similarly designed signs eventually popping up in Bella Vista, Rogers, Lowell, Springdale, Fayetteville and Siloam Springs.

“What I love about the regional wayfinding project is that it unites Northwest Arkansas in a visual way,” said Rogers Mayor Greg Hines, a member of the Northwest Arkansas Council's regional wayfinding steering committee. “The signs will make tourists feel like insiders, and they’ll remind local residents of the great places right here that are perfect for weekend outings.”

The Council was the organization that pushed the wayfinding signs in the region, which were paid through a grant from the Walton Family Foundation to Endeavor Foundation, in partnership with the Northwest Arkansas Council. According to information provided by the Northwest Arkansas Council, total costs for more than 250 signs in the seven area cities included in the program totaled $1.1 million.

As for costs in the Fort Smith region, Morrison said it is still an unknown though the Frontier MPO would work to keep costs minimal.

"Right now it is just in the planning (phase). A lot of it will be able to be done in-house," she said. "We may need a consultant to help with designing the signs and coming up with exact locations or best locations for routes on where to put the signs. But we're trying to do as much as we can without having to pay someone."

The cost of the signs, she added, would be paid for by the individual communities. Those communities, she said, would also pay for installation of the signs in the highway department right of ways. Legris said some of the communities could apply for grant funding similar to what many cities in Northwest Arkansas did when signs began to be installed last year.

The communities that have agreed to be a part of the Frontier MPO's wayfinding sign group include the Arkansas cities of Alma, Barling, Bonanza, Central City, Fort Smith, Greenwood, Kibler, Lavaca, and Van Buren. Crawford and Sebastian Counties, as well as the Fort Chaffee Redevelopment Authority, are also included in the group, as are the Oklahoma cities of Arkoma, Pocola and Sallisaw.

Oklahoma Department of Transportation spokesman Cole Hackett said for the program to cross the state line, the MPO and the communities would need to work with ODOT to make sure the organization's restrictions and guidelines were followed.

"We don't do it too often, but we do it occasionally," he added.

Legris said local residents should be aware that the program is not intended as a short-term project and was intended to guide visitors and locals to signs such as the planned U.S. Marshals Museum and other attractions of note in the community.

"This will be a long-term project and the folks in Northwest Arkansas are more than happy to share information with us, some of the successes and some of the challenges in bringing different communities together to where the signs have a unified look and design," he said, adding the the signs he envisions would be similar in design to those in Northwest Arkansas.

"It shows unity in the region and with Northwest Arkansas, as well. If you're coming to the region, you'll see a similar design of signs in Northwest Arkansas and Fort Smith," Legris noted.

A Fort Smith mental health hospital is investing $5.1 million in an expansion that will add a total of 25 jobs.

According to Valley Behavioral Health System CEO Anthony Walters, the expansion to the hospital's location at 10301 Mayo Drive will take the facility from a 75 bed inpatient facility to 114 beds.

"We essentially have a project in motion right now where we're going to be adding two new units to the facility and it'll be two 20 bed units at the existing facility," he said, adding that the addition will open the facility to more patients in the future.

"We see days here in the valley where there are no beds and that's a major issue, particularly if someone has a family member that's receiving treatment, whether it's a child or an adult or a geriatric, etc. We run generally over 90% occupancy and so again what that means at times is there's simply no beds."

As a result, Walters said patients often have to drive to Fayetteville, Little Rock or elsewhere to receive treatment for mental health issues that Valley Behavioral typically would be able to treat if occupancy levels were not prohibitive.

The new units will expand existing healthcare offerings at the facility, he said, while Director of Business Development Beverly Wilborn said other services may be added in the future due to the new space available upon completion of the expansion.

"I've met with several members of the community to get their input on what they see our community might need in those specialty programs. I met with several different people at several different levels and several different organizations," she said, adding that while Valley specializes in children and adolescent treatment, additional adult and elderly service lines may be part of the expanded services in coming years.

Because of the the planned growth of the service offerings at Valley Behavioral, Walters said the number of jobs added was likely to be higher than the 25 planned. The jobs, he said, would also consist of more than just therapists and nurses.

"There will be a number of new positions created, which ultimately means jobs. It'll be direct care staff, but also administrative staff that will be added to compliment (healthcare providers)," Walters said.

Walters noted that while many people may not be familiar with Valley, its history in the community is long, dating back to the mid-1980s when it was founded as a part of the Sisters of Mercy Health System before undergoing "several changes of ownership."

Most recently, the facility operated under the Vista Health brand. And while the hospital may not be as visible in the community as Mercy or Sparks, he said the services provided are just as important for the community.

"One of the things that I think we're very passionate about here at Valley is that for an individual who has a behavioral health crisis, something that is going on where they need treatment, it is extremely important for individuals to have access to care and quality care," Walters said. "We think a lot about someone needing care or seeking care if they're having a heart attack or things like that. Or some other type of medical procedure. And that certainly is an important realm of healthcare. But behavioral health is, as well. We see often times when individuals are able to access care, that good things happen in terms of suicide risk being minimized and individuals being able to stabilize."

Walters said preventing suicide and other risks to individuals is an important part of the work being done at Valley, adding that working in partnership with other healthcare service providers, schools and other organizations allows Valley to meet its mission.

"Right here in our backyard daily, we have folks in our backyard who need help and there should be no shame or stigma in coming in to seek help. And we want to have the capacity to serve because I do believe if the access is there, we can seek to work in partnership with others and I believe we can save lives doing that."

Construction on the expansion at Valley Behavioral is expected to be completed sometime late in the fourth quarter of 2015.

The building at 318 Garrison that was the home of Varsity Sports Grill for more than 20 years may have not served up a cold brew and a hot meal in months, but it does not mean the site was without activity as crews did a more than $500,000 renovation of the building in preparation for the opening of Bricktown Brewery on Monday (Oct. 27).

Plans for the restaurant were first announced in June, when Managing Partner Buck Warfield of BT Concepts revealed during a Central Business Improvement District meeting that his Oklahoma City-based company had purchased Varsity and was planning to invest dollars in both renovations and jobs in the heart of downtown Fort Smith.

The Fort Smith location is the first outside of Oklahoma for the company, which also has locations at the Remington Park Casino in Oklahoma City, as well as locations in Edmond, Owasso and Shawnee.

The renovations, which began in August, made several changes to the building on the corner of 4th Street and Garrison Avenue, including adding an entrance on Garrison, as well as adding a concept similar to beer gardens on the west side of what is currently the pool room.

"As I stared at the footprint of the building, it became apparent to me that what is now an existing … west side pool room … it seems natural to me to punch through that wall to create that indoor, outdoor dining experience," Warfield told the CBID commissioners June 17.

That outdoor space includes an area Warfield billed as a "music space," which he said has become an important part of the Bricktown Brewery developments.

"We'd like to relocate the planters (trees, bushes, etc.) and pour that and create a natural stage. It's just a perfect place for it," he added at the time.

The expansion of the building to the west included matching brick on the building addition, as well as replanting all landscaping currently in place. New landscaping was be added, as well as garage-like doors to allow the addition to have open air.

The changes also included the iconic neon Varsity sign that has been a fixture of Garrison since the 1990s coming down and being replaced with a similar sign for Bricktown Brewery.

General Manager Kathy Young said Wednesday (Oct. 29) that changes to the facility are more than just structural, noting that tables throughout the restaurant are made from repurposed 130-year-old wood salvaged from numerous downtown buildings, namely those owned by Griffin Properties. Griffin owns the building that houses Bricktown Brewery, as well as a series of buildings across the street under renovation and set to open next year as luxury apartments.

Young also said artwork on the outside and interior of the building had been completed by an artist named Ace Parker, a former baseball player who is working with the company to create unique art that will only be seen at Bricktown Brewery locations.

She said the former Varsity staff were all offered their positions and staff was increased by as many as 50% to 60%, with a final opening staff of 100 employees Monday.

The biggest change, Young said, will be the addition of local brews from Arkansas and Oklahoma. She said the beers include Bricktown Brown, brewed at the original Bricktown Brewery location in downtown Oklahoma City. Additional local beers on tap include flavors from Ozark Brewing Company and brews with names like Sing Strong Stout and Blues Berry. Another tap special will be a Remington Red renamed Red Griffin Ale in honor of the family that owns Griffin Properties. Attempts to reach Griffin Properties executives Wednesday were unsuccessful.

In all, she said 75 beers would be available with a focus on "Bricktown Brewery's own" beers, then other local beers and finally beers from surrounding states. Young said while the Fort Smith location would not house a brewery in the near future, space was available following renovations to add a brewery based on business demands.

And while Bricktown Brewery is known for its selection of beer, she noted that the restaurant had a full menu for adults and children.

The final major change will be Adelaide Hall, which Young said would now operate as a standalone operation with its own website and booking. Previously, she said bookings were done through Varsity staff and Adelaide Hall shared a web presence with the restaurant.

While Fort Smith is the first location outside Oklahoma, Young said it would not be the last as the company has its sights set on Wichita, Kan., for its next location.

Bricktown Brewery is open Monday through Thursday from 11 a.m. to 11 p.m., Friday and Saturday 11 a.m. to midnight and Sunday's schedule is "open ended," Young said, adding that closing times were based on business needs.

El Dorado oil giant Murphy Oil Corp. saw third quarter earnings fall 10.8% from a year ago as sliding crude prices and weaker international oil demand cut into the company’s bottom line and flattened the company’s profit margins for the fifth straight quarter.

For the period ended Sept. 30, Murphy reported adjusted income of $205.6 million, or $1.15 per diluted share, compared to $230.4 million, or $1.22 per diluted share, a year ago. Murphy’s revenue rose marginally to $1.42 billion, compared to $1.41 billion a year ago.

Wall Street had expected the Arkansas oil company to report third quarter earnings of 99 cents per share on revenue of $1.41 billion, according to Thomson Reuters.

Murphy Oil President and CEO Roger Jenkins said third quarter earnings were “negatively impacted due to lower average realized oil sales prices of nearly $9.00 per barrel.” He said he was still pleased with the progress the company made in portfolio optimization, production operations, and return to shareholders.

“The signing of the Malaysia sales agreement marks the value of those long term assets at near $7 billion, and we continue to progress our exit of the downstream business in the United Kingdom. In production we continue to set quarterly production records, with the Eagle Ford Shale and offshore Malaysia projects leading in oil growth,” Jenkins said. “We look forward to a strong closing quarter of the year, and I anticipate setting another quarterly production record as we maintain our current annual guidance.”

During the third quarter, spot prices for West Texas Intermediate (WTI) crude oil fell from a monthly average of $97 per barrel (BBL) in August to $93/bbl in September. The discount of WTI crude oil to international Brent crude oil fell from an average of $8/bbl during this year’s first half to an average of $4/bbl in the third quarter, according to the U.S. Energy Information Administration. More closely, spot prices for WTI crude oil have dropped 21.7% since the Fourth of July, from $105.52 to $82.62 in midday trading on Wednesday.

Going forward, most Wall Street forecasters don’t expect the current low-price environment to improve anytime soon for Murphy and other oil producers and explorers in the fourth quarter or early 2015.

On Monday, highly influential Goldman Sachs forecasted that it expected the nation’s benchmark WTI crude to continue downward to $75 a barrel and Brent to $85 a barrel in the first quarter of 2015, down a whopping $15 from their previous forecast. Goldman analysts also predicted WTI could fall as low as $70 in the second quarter and Brent as low as $80, if supply and demand levels don’t improve.

During the third quarter, Murphy’s Malaysian business units announced an agreement with Indonesian state-owned oil company, PT Pertamina, to sell its 30 percent stake in the company’s Malaysian oil and gas portfolio for $2 billion in cash. That deal is expected to close in two phases, with the first Pertamina expected to be completed in the fourth quarter. The second phase will be completed by the first quarter of 2015, company officials said.

Although Murphy said it is not giving up on its long-term partnership with Pertamina to develop future deep- and shallow-water offshore exploration projects in Malaysia, the company has signaled it will follow the recent trend of other international oil giants such as ExxonMobil, BP and Chevron and divert more capital to grow the company’s U.S. shale operations.

“We will continue to evaluate all aspects of our portfolio,” Jenkins said following the deal on Sept. 30. “This transaction allows us to re-deploy the proceeds through an individual or combination of strategic and financial initiatives such as increased drilling capital in the Eagle Ford Shale, acquisition opportunities, debt reduction and share repurchases.”

Still, Moody’s Investor Service affirmed the company’s senior debt as “negative” on Oct. 1, saying the company’s outlook was negative because of the uncertain use of the proceeds from the Malaysian sell-off and the oil giant’s relatively higher risk asset portfolio compared to its industry peers.

Moody analyst Gretchen French said Murphy would need to increase capital spending on its U.S. shale operations and make better acquisitions to offset poor exploration results and low natural gas prices.

“Moody’s believes that acquisitions and increased capital spending in the Eagle Ford Shale will account for a meaningful use of the asset sale proceeds, given longer term asset portfolio durability concerns,” French wrote in a research note. “In order to support production growth post 2017, Murphy will need to make acquisitions, as exploration successes have been lacking and natural gas prices have not been supportive of economically growing production in (Canada).”

Following are additional highlights of Murphy’s third quarter report:
• Signed a Sales and Purchase Agreement to sell 30% of Murphy`s Malaysia business for $2.0 billion;
• Authorized a new $500 million share repurchase program on Aug. 6, 2014 and announced a 12% dividend increase to $1.40 per share on an annualized basis;
• Set a new quarterly production record of 229,759 barrels of oil equivalent per day (boepd);
• Grew Eagle Ford Shale production 15% compared to the second quarter and set a new quarterly record of 60,563 boepd; and
• Closed on the sale of the U.K. retail gasoline business on Sept. 30, 2014 and remains on-track to close on the Milford Haven refinery sale Oct. 31, 2014.

At the close of business Wednesday, Murphy’s shares were down 63 cents at $52 a share. More than 2.34 million shares traded hands in the mid-week session, well above the Arkansas oil producer’s daily volume of nearly 1.4 million shares. Murphy has a 52-week high of $68.43 and a yearly low of $49.38.

Murphy USA Inc., the retail marketing business that was spun off by Murphy Oil as an independent public trade concern just over a year ago, is scheduled to release its third quarter earnings on Nov. 5.

The September labor market report for the Fort Smith area shows two consecutive months of workforce gains and rise in the number of employed. Such gains will need to continue to erase an almost 9% loss in regional jobs from an employment peak in October 2008.

Fort Smith’s metro jobless rate was 5.7% in September compared to 6.1% in August. The rate was lower than the 7.5% in September 2013, according to figures from the U.S. Bureau of Labor Statistics. September’s data is subject to revision in future reports from the U.S. Bureau of Labor Statistics.

The size of the Fort Smith regional workforce during September was 126,104, up from 125,739 during August, but below the 130,684 during September 2013. The labor force reached a revised high of 140,253 in June 2007, meaning the September workforce size is down 10% from the peak number.

The number of employed in the Fort Smith region totaled 118,911 in September, up from 118,030 in August, and an estimated 1,987 jobs below the 120,893 employed in September 2013.

All of the eight metro areas in or connected to Arkansas had jobless rate decreases in September compared to August, and all had jobless rate declines compared to September 2013. During September, the lowest metro jobless rate in the state was 4.4% in Northwest Arkansas and the highest rate was 7.9% in the Memphis-West Memphis area.

FORT SMITH METRO NUMBERS
Unemployed persons in the region totaled an estimated 7,193 during September, below the 7,709 during August, but well below the 9,791 during September 2013.

The Fort Smith area manufacturing sector employed an estimated 17,900 in September, down from 18,000 in August, and down from 18,400 to September 2013. Sector employment is down almost 37% from a decade ago when September 2004 manufacturing employment in the metro area stood at 28,400. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005, 19,200 in 2012, and to 18,300 in 2013.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 24,400 in September, down from 24,500 in August, and above the 23,700 during September 2013. Employment in the sector reached a high of 25,700 in December 2007.

Employment in the region’s tourism industry was 10,100 during September, up from 9,900 in August and above the 9,400 in September 2013. If not revised, the September numbers mark a new high and mark the first time the sector has employed more than 10,000.

In Education & Health Services, employment was 16,500 during September, up from 16,300 in August and below the 16,800 during September 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in October 2012.

In the Government sector, employment was 19,200 during September, up compared to 17,800 in August and above the 19,100 in September 2013.

NATIONAL NUMBERS
Unemployment rates were lower in September than a year earlier in 339 of the 372 metropolitan areas, higher in 26 areas, and unchanged in seven areas, noted the broad BLS report.

The U.S. unemployment rate in September was 5.9%, down from 7.2% from a year earlier. Arkansas’ jobless rate was 6.2% in September, down from 6.3% in August and down from 7.7% in September 2013.

Oklahoma’s jobless rate during September was 4.7%, unchanged compared to August, and down compared to 5.6% in September 2013. The Missouri jobless rate during September was 6.3%, unchanged compared to August and below the 6.4% in September 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
September 2014: 4.4%
August 2014: 4.9%
September 2013: 5.5%

Fort Smith
September 2014: 5.7%
August 2014: 6.1%
September 2013: 7.5%

Hot Springs
September 2014: 6.1%
August 2014: 6.4%
September 2013: 7.7%

Jonesboro
September 2014: 5.3%
August 2014: 5.7%
September 2013: 6.7%

Little Rock-North Little Rock-Conway
September 2014: 5.3%
August 2014: 5.6%
September 2013: 6.6%

Memphis-West Memphis
September 2014: 7.9%
August 2014: 8.5%
September 2013: 9.2%

Pine Bluff
September 2014: 7.6%
August 2014: 8.4%
September 2013: 9.6%

Texarkana
September 2014: 5.8%
August 2014: 6.4%
September 2013: 7.4%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2013: 8%
2012: 7.7%
2011: 8.3%
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

With less than a week until Election Day on Tuesday, Nov. 4, the latest polling in the race for Arkansas governor and U.S. Senate show Republicans with leads that are outside the margin of error.

The 16th annual Arkansas Poll, conducted by the University of Arkansas, shows U.S. Rep. Tom Cotton, R-Dardanelle, leading incumbent U.S. Sen. Mark Pryor, D-Ark., by a 13 point margin, 49% to 36%.

In the race for governor, former Republican U.S. Rep. Asa Hutchinson is leading former Democratic U.S. Rep. Mike Ross by 11 points, 50% to 39%.

The poll, conducted between Oct. 21 and Oct. 27, has a margin of error of +/- 3.6%, meaning that both Republican candidates have large leads outside the margin of error.

In the race for Senate, Arkansas Poll Director Janine Parry noted that among men, the spread between Cotton and Pryor widens to 21 points with 57% favoring the freshman Republican congressman versus only 36% supporting Pryor. But polling of women showed no difference between the two, with both men showing 42% support among female respondents.

Parry said the calculated difference between male and female votes for the leading candidates was 15 points, the largest in Arkansas Poll history.

And she said that is why left-leaning candidates and PACs have focused on women's issues in the month leading up to the election.

“It is no accident that the Democrats seem to have made October the month of the woman,” she said. “Not only are women as likely to favor Pryor as they are Cotton, but their votes are still up for grabs. While 7 percent of men answered ‘don’t know’ or refused to answer, 13 percent of women were in one of those categories.”

Democrats may have made an effort to win more votes from female voters, but it may not be working as Cotton's lead has widened by 3.5% from the Talk Business & Politics and Hendrix College poll conducted Oct. 15 and Oct. 16, in which Cotton's lead was 8.5 points over Pryor, 49% to 40.5%. Six percent of respondents in that poll identified as being undecided in the race.

Cotton's campaign was upbeat when asked for comment on the latest polling, campaign spokesman David Ray said.

"We feel good about where the race is right now, but we're not taking anything for granted," he said. "Tom and our volunteers are working around the clock to turn out our voters and win on Election Day. Arkansans are ready for change, and they're ready for a U.S. Senator who has what it takes to stand up to President Obama in Washington."

The Pryor campaign did not respond to requests for comment.

In the race for governor, the Arkansas Poll numbers are far off the previous Talk Business/Hendrix College poll, conducted Oct. 15 and Oct. 16, which had Hutchinson at 49% to Ross's 41%.

J.R. Davis, spokesman for the Hutchinson campaign, said the Arkansas Poll showed that Hutchinson's campaign was connecting with Arkansas voters.

"We are very excited by the results and our momentum that demonstrates Asa's plan is resonating with voters, but we know how important it is to get our voters out on election day.  We will not rest on poll numbers but we will campaign through the finish line."

Ross's campaign, on the other hand, pointed to an internal poll conducted Oct. 25 and Oct. 26, which shows a statistical dead heat for the gubernatorial and Senate races.

“We have outraised Congressman Hutchinson by more than $2 million in this campaign and a poll just last week showed Mike Ross leading by 2 points, so we are excited about the strong position and momentum our campaign has heading into Election Day," said Ross spokesman Brad Howard.

"Mike Ross is focused on the only poll that matters, the one on Election Day. He is traveling all across the state meeting as many voters as he can between now and Election Day and talking about his Jobs First plan to strengthen education – particularly pre-k and career tech – cut taxes, reduce regulations and create more and better-paying jobs."

The head of the Arkansas Research and Technology Park said Thursday that the “town and gown” collaborative effort between the city of Fayetteville and University of Arkansas has been the key ingredient to the success of the region’s research park over the past decade.

University officials held a ceremony Thursday in Fayetteville commemorating the 10th anniversary of the Arkansas Research and Technology Park. At the 10 a.m. ceremony, a new economic impact analysis was unveiled, touting that the technology park has boosted the state’s economy by more than $522 million over the past 10 years.

“It really started as an outgrowth of conversations between the university and the Fayetteville city administration about what more could be done to deepen the ‘town and gown’ relationships for knowledge-based economic development,” Phil Stafford, president of the research park, told Talk Business & Politics.

The Innovation Center at the research park was first dedicated on Oct. 15, 2004. The park ended fiscal year 2014 with 38 public/private affiliate companies and 196 employees, resulting in a total employment impact of 385 jobs statewide.

“From the vantage of 10 years, it’s clear that the Arkansas Research and Technology Park has been an unqualified success, and its anniversary is well worth taking some time to celebrate,” University of Arkansas Chancellor G. David Gearhart told a crowd that gathered in the Innovation Center atrium.

According to the report by The Center for Business and Economic Research in the UA Walton College of Business, labor income associated with the research park’s tenant companies totaled $189.5 million from 2005 to 2014, and the research park’s overall economic impact on the state from 2003 to 2014 totaled $522.9 million.

Based on expenditures by the park’s affiliates for fiscal 2014, which ended June 30, the research park generated $54.7 million in economic activity statewide and $1.8 million in state and local taxes. The park’s partners include the city of Fayetteville, the Northwest Arkansas Council, the Arkansas Economic Development Commission, Innovate Arkansas and the Arkansas Science and Technology Authority, among others.

Stafford said he believes even though the Fayetteville Tech Park is now 10 years old, it is poised for more growth in the midst of an exciting time for venture capitalists, entrepreneurs, and startup and technology-based companies in the state of Arkansas.

He also mentioned the fact that he has advised the Little Rock Technology Park Authority Board on its controversial efforts to create a technology park in central Arkansas. In July, the board approved a consultant’s recommendation to locate the technology park’s new headquarters in Little Rock’s so-called “Creative Corridor,” where start-up and entrepreneurial activity in the downtown area is rapidly picking up pace. In early June, the Technology Park board announced the hiring of Brent Birch as its new director.

“First and foremost, you have to have a plan and stick to the plan,” Stafford said of his advice to his Little Rock peers. “This is not a short-term endeavor, but a long-term opportunity to attract economic development to your community.”

Stafford also said that the Fayetteville research and technology park is now almost completely driven by “consistently innovative” companies that exclusively benefit from the research and development assets from the university.

“That has enabled these companies to innovate, invent and test their technology and deploy them for commercialization,” he said.

Over the past 10 years, the Fayetteville technology park has been able to attract technology and knowledge-based companies across the entire startup ecosystem, Stafford said. For example, he said while it may only take one entrepreneur a few days to create a mobile app, it may take another startup company several years to bring a medical or biotech innovation to market.

“Those are two ends of the spectrum, and then there is everything in between,” Stafford said. “The time frame to get (to market) is driven by access to capital. That is the great accelerator.”

Stafford also said he is excited about the research park’s future and is always looking for new ways to innovate and expand opportunities for the companies and partners it serves.

“We are consistently looking to ideas on how we can be a better partner. Plans are underway to add additional research assets that we can leverage to expand our portfolio of companies,” he said. “It has taken a lot of heavy lifting, but we have created more of a mindset of entrepreneurship and our ecosystem has grown and now has a lot more support than we than back 10 years ago.”