The partial shutdown of the federal government hasn't had a significant effect on City Hall, but City Manager Bill Burrough said municipal services could be affected if the funding impasse extends into next month.
The city's Essential Air Service contract expires at the end of February, creating uncertainty about the availability of commercial air service at Hot Springs Memorial Field. The city submitted a letter of support in November for current EAS provider Southern Airways to continue servicing the airport after February, but the U.S. Department of Transportation had yet to approve the Memphis-based airline's proposal when the shutdown took effect last month.
DOT is one of nine federal departments affected by the shutdown.
DOT pays the airline $2,378,312 a year for 18 weekly round-trip flights from Hot Springs to Dallas/Fort Worth International Airport, according to a DOT subsidy report. The city-endorsed proposal Southern Airways submitted has 12 weekly round-trip flights DFW and six to Memphis International Airport. According to the proposal, a $2,620,658 subsidy would be needed during the first year of the contract.
Burrough said it's unclear how the service would be affected if the shutdown isn't resolved prior to the contract's expiration at the end of next month.
"We haven't received any guidance on that," he said. "These are areas we'll be looking to the (Federal Aviation Administration) or DOT for guidance. Right now we just don't know."
The U.S. Geological Survey's flood warning information system that alerts the city to rising waters in the Hot Springs Creek basin could also be affected, Burrough said. The agency notified the city via email last week that it's unable to pay past-due notices from utilities that provide power and internet service for the system.
The email said the agency plans on asking for a grace period. The U.S. Department of the Interior, which oversees USGS, is also one of the departments that's funding has been affected by the shutdown.
"That's an issue we've been monitoring that could be a problem," Burrough said. "If the past-due notices aren't paid, the system may not be able to warn us."
The Hot Springs Board of Directors approved a five-year, $376,850 contract with USGS in December for the maintenance and operation of the system, but no federal personnel have been available to address potential maintenance issues since the shutdown began last month.
Community Development Block Grant project reimbursement requests the city submitted to the U.S. Department of Treasury are on hold, Michelle Sestili, the city's CDBG administrator said. She said the projects were authorized for funding prior to the shutdown. Contractors have been paid, but the shutdown has held up reimbursement payments.
Sestili said three of the 16 projects recommended for fiscal year 2018 funding have been completed, including two Habitat for Humanity site work projects. The U.S. Department of Housing and Urban Development awarded the city $456,368 in CDBG funds for the fiscal year that ended in September.
Funding for HUD and the Treasury Department has also been affected by the shutdown.
Planning and Development Director Kathy Sellman said the fiscal year 2019 project list the Community Development Advisory Committee will present to the city board next month comprises 21 projects totaling more than $588,000.
Local on 01/15/2019