Holiday Island approves fund transfer to detect water leaks

HOLIDAY ISLAND -- The Holiday Island Suburban Improvement District (HISID) recently took action to modify its budget to put $100,000 previously allocated for water or wastewater improvements into detecting and fixing leaks in the water system.

"We have some water loss issues that we have to get under control," said HISID Manager Kevin Crosson. "We are modifying how we are spending our rehabilitation money to allocate a good portion of that to leak detection for the water system."

On June 22, the HISID Board of Directors heard a presentation from the engineering firm Mathis Carter & Associates regarding the water and wastewater improvements.

The 'rainy day' fund

At the same meeting, the board also approved a recommendation from staff that $46,331 in National Recreational Properties Inc. (NRPI) funds be used to replenish the HISID's undesignated reserve fund balance, the "rainy day" fund that requires not less than 35 percent of annual budgeted operating expenditures be held in reserve.

NRPI failed to pay HISID assessments in 2008 for the 700 lots it owns at Holiday Island, but the district did receive a check from NRPI in February for $228,661, which represented the assessment fee plus a 25-percent penalty. Because of the slow sales market, there is concern about NRPI's continuing commitment to market its lots in Holiday Island. The company missed its first assessment payment in 2009, but the total payment isn't due until October.

NRPI has reportedly removed its sales staff from Holiday Island and other similar lake resort communities in the state. However, HISID board members have said they think it unlikely NRPI would have paid its 2008 assessment without planning to continue marketing Holiday Island in 2009.

Reduced budget

Crosson said when the board adopted its budget for this year, it didn't include funds from NRPI assessments. The HISID took action to reduce expenses such as reducing staff hours.

"We are keeping the reduced budget in place until we see further progress with NRPI selling lots in Holiday Island this year," Crosson said.

In other action, the district authorized a new lease on golf carts used at the Holiday Island Golf Course. HISID is currently in its fourth year of a five-year lease with Yamaha Golf Car Company for a fleet of 51 golf carts.

"The cost of this lease, which is set up on six payments per year, is $89.78 per cart ($27,472.68 annually)," Crosson said. "Because the existing fleet is beginning to show signs of wear and tear, staff has advertised for bids for a new lease to replace the existing fleet with new carts."

Bids were opened June 18 and two bids were received. The current vendor, Yamaha Golf Car Company, bid $88.58 per cart per month. E-Z Go Golf Cars bid $156.67 per cart.

Board chooses Yamaha

The board approved the bid by Yamaha Golf Car Company, which had a bid of $1.20 per cart less than the existing lease price.

The HISID board also approved a staff recommendation to add $25,000 to its chip-and-seal surfacing funding for roads. That addition puts the budget in line with the $50,000 normally spent in previous years.

"Continuing an annual program of both asphalt improvements and chip-and-seal maintenance improvements is extremely important to Holiday Island, not only from a maintenance standpoint, but also from a marketing and promotion standpoint," Crosson said.

The board also discussed recommendations for establishing a deer management advisory group. While the board didn't take any action to set up the deer management group, it discussed how it would solicit applications to the proposed nine-member committee.

Deer density

The deer management committee is being considered because of complaints that deer are overpopulated on Holiday Island, harming people's yards and gardens and causing a traffic hazard. Some action may need to be taken to thin the deer herd.

The Arkansas Game and Fish Commission (AGFC) did a spotlight survey conducted March 30 and 31, and estimated a deer density of about 105 deer per square mile. That is considered a "very dense population."

AGFC Deer Program Coordinator Brad Miller said the following are management and control options:

* Do nothing;

* Contract sharpshooters;

* Fertility control;

* Trap and transfer;

* Trap and euthanize; or

* Controlled hunt.