Since the enactment of Act 837 of 1987, codified as A.C.A. 20-22-809, for the purpose of workers’ compensation coverage, volunteer firefighters of certified fire departments are considered county employees and shall receive minimum compensation.

These volunteer firefighters are “county employees” for purposes of workers’ compensation coverage only.  To be eligible for coverage the volunteer firefighter must maintain the minimum training standards as established by the Arkansas Fire Protection Services Board and A.C.A. 20-22-806 and must be a member of a certified fire department other than a municipal fire department.

Act 808 of 2009 amended A.C.A. 20-22-806 and 20-22-809 to include workers’ compensation coverage for a member of a certified volunteer fire department who does not engage in firefighting and is exempt from the minimum training standards.

For the purpose of workers’ compensation coverage in cases of injury, volunteer firefighters of certified fire departments will receive minimum compensation.  In the case of death arising out of and in the course of their activities as firefighters, the survivors will receive death benefits in the same manner as regular county employees.

Counties of Arkansas have operated under the “90% Rule” since 1879 as outlined in Arkansas Code Annotated 14-20-103.  A few exceptions to the 90% limitation have been adopted over the years.

The crux of A.C.A. 14-20-103 states, “the county quorum court shall specify the amount of appropriations for each purpose in dollars and cents,…..the total amount of appropriations for all county purposes for any one (1) year shall not exceed ninety percent (90%) of the anticipated revenues for that year…..”.  The few exceptions to the 90% rule that have been added to the code over the years are:

1. A county can appropriate 100% of a federal or state grant.  However, a county must be able to demonstrate that the state or federal agency issuing the funding characterized the revenues as a grant. 
2. Any county that is declared a disaster area by the Governor or the U.S. government may appropriate in excess of the 90% anticipated revenues – only as long as the amount in excess of 90% is used for “street cleanup and repair; collection, transportation and disposal of debris; repair or replacement of county facilities and equipment; and other projects or costs directly related to or resulting from the natural disaster.”
3. Any county that has a dedicated sales tax – one that is dedicated by ballot title – may appropriate up to 100% of that dedicated sales tax.  [This exception does not apply to dedicated revenues that have been pledged for bonds; or general sales and use tax revenues.]

The reasoning behind the original law (and the exceptions are not a part of the original law) is at least two-fold: (1) the projected revenues are just that – projected – a calculated estimate based on past and present financial data and trends.  The 90% rule allows for some margin of error; and (2) a large percentage of county government revenue is received in the final half of the year.  Using the 90% rule allows for a carry-over cash balance which provides cash flow in the first part of the year when actual (current year) revenue received is less.

The “10% set-aside” is not set-aside forever.  It does get used.  For most counties, the carry-over cash balance of any account becomes a part of the projected revenues for the following year.  The carry-over cash balance includes the 10% set-aside, revenues in excess of projections, and revenues remaining from unspent appropriations.  Of course, the ideal operation would not even depend on the 10% set-aside for budgeting and actually set those amounts aside as a “reserve” for emergencies.  

A.C.A. 14-20-103 is a law that has worked very well for county government since 1879.  The law has been modified a few times, allowing for the exceptions to the rule.  But, when used properly this law has allowed county government to operate responsibly and with financial integrity.

The simple answer is “yes” – but 911 revenues are restricted.  Any 911 revenue generated pursuant to A.C.A. 12-10-318 through 12-10-321 must be spent only in direct connection with the provision of 911 services.

A.C.A. 12-10-323 outlines the purposes for which 911 revenues can be spent.  They are:

1. The engineering, installation, and recurring costs necessary to implement, operate, and maintain a 911 telephone system;
2. The costs necessary for forwarding and transfer capabilities of calls from the 911 public communication center to dispatch centers or to other 911 public safety communication centers; 
3. 3. Engineering, construction, lease, or purchase costs to lease, purchase, build, remodel, or refurbish a 911 public safety communication center and for necessary emergency and uninterruptible power supplies for the center; 
4. Personnel costs, including salary and benefits, of each position charged with supervision and operation of the 911 public safety communication center and system; 
5. Purchase, lease, operation, and maintenance of consoles, telephone and communications equipment owned or operated by the political subdivisions and physically located within and for the use of the 911 public safety communication center, and radio or microwave towers and equipment with lines which terminate in the 911 public safety communication center; 
6. Purchase, lease, operation, and maintenance of computers, data processing equipment, associated equipment, and leased audio or data lines assigned to and operated by the 911 public safety communication center for the purposes of coordinating, forwarding of calls, dispatch, or recordkeeping of public safety and private safety agencies for which the 911 public safety communication center is the public safety answering point and to provide information assistance to those agencies; and 
7. Supplies, equipment, public safety answering point personnel training, vehicles, and vehicle maintenance, if such items are solely and directly related to and incurred by the political subdivision in mapping, addressing, and readdressing a 911 system. [This does not authorize a county to purchase emergency response vehicles or law enforcement vehicles from these funds / A.C.A. 12-10-323(a)(2)]

Even though the list of authorized expenditures of 911 revenues has been expanded and liberalized in recent years – the list is not “all inclusive”.  Any expenditure of 911 revenue generated by A.C.A. 12-10-318 through 12-10-321 is prohibited if it is not identified in the list above 1 – 7. [A.C.A. 12-10-323(b)]

As in the case of other restricted revenue funds, appropriations of funds from other sources – such as the General Fund – may supplement the authorized expenditures of A.C.A. 12-10-323 and may fund other activities of the 911 public safety communication center not associated with the provision of emergency services. [A.C.A. 12-10-323(c)]

According to Article 16, Section 5 of the Arkansas Constitution, both real and personal property is taxable.  Section 17 of Arkansas Constitution Amendment 59 repealed the original Article 16, Section 5 and substituted the current wording which, in part, says: “all real and tangible personal property subject to taxation shall be taxed according to its value, that value to be ascertained in such manner as the General Assembly shall direct, making the same equal and uniform throughout the State.”  Amendment 71 of the Arkansas Constitution, adopted at the 1992 general election, delineates what personal property is exempt from ad valorem taxes and what personal property is taxable. 

The maximum rates that can be levied on real and personal property by the county for county use are 5 mills for general use; 3 mills for road purposes; and 5 mills for operation and maintenance of the county library.  The county quorum court is required to levy ad valorem tax rates at its regular meeting in November of each year for collection the following year [A.C.A. 14-14-904(b)(1)(A)(i)].  The Director of the Assessment Coordination Department may authorize an extension of up to 60 days of the date for levy of taxes if there is good cause shown resulting from reappraisal or rollback of taxes.  The application for extension must be filed by the County Judge and County Clerk.  [Note:  1 mill = a tenth of 1%]

The electorate does not have to approve the levy of general and road taxes for the county.  The county is given the authority to levy up to 5 mills for general (all) purposes in Article 16, Section 9 of the Arkansas Constitution – “No county shall levy a tax to exceed one-half of one per cent (5 mills) for all purposes…..”  Amendment 61 to the state constitution says, “County quorum courts may annually levy a county road tax not to exceed three (3) mills on the dollar on all taxable real and personal property within their respective counties.....”  Amendment 61 repealed Arkansas Constitution, Amendment 3, which also allowed a maximum 3 mill road tax, but under Amendment 3 the tax had to appear on the ballot every general election.  Every November the quorum court has the authority to levy a county general tax up to 5 mills and a road tax up to 3 mills.

A county is also authorized to levy a county library tax by Amendment 38 of the Arkansas Constitution (amended by Amendment 72 and incorporated into Amendment 38 by amending Sections 1 and 3 and adding Section 5).  However, this tax must be voted on by the electors of the county and the tax rate cannot exceed five mills on the dollar for maintenance and operation of the library (Amendment 38, Section 1).  The maintenance and operation of the library is defined in A.C.A. 13-2-405(2).  Once the rate is established by the electorate, the quorum court will levy the established rate each year until there is another election to change the rate.  Amendment 38, Section 3 of the state constitution requires an election to raise, reduce or abolish the library tax.  

Section 5 of Amendment 38 (added by Amendment 72) provides for an election for a special library tax, in addition to the maintenance and operation tax, to pay bonded indebtedness to finance capital improvements to or construction of a county library or county library service or system.  Upon retirement of the bonded indebtedness, any surplus tax collections, which may have accumulated, shall be transferred to the general funds of the county, and shall be used for maintenance of the county library.

Arkansas law does not directly answer that question. I cannot point you to an Arkansas code that says that a certain county official or office shall have custody of titles to county owned vehicles and equipment.  However, I would like to call your attention to several laws that help us draw a reasonable conclusion.  They are:

The County Sheriff’s office budget is probably the largest office budget of the county constitutional officers.  Although the Sheriff’s office has the ability to generate quite a bit of revenue it will not be enough to cover the cost of running the office.

The County Sheriff may be the county official designated in your county by the quorum court to collect fines [A.C.A. 16-13-709 Responsibility for collection].  Of course, many circuit and district court fines remain at the local level and are remitted to the general fund.

The County Sheriff has several “Special Revenue” funds – such as the Communications Facility and Equipment Fund [A.C.A. 21-6-307]; the Boating Safety Enforcement Fund or Emergency Rescue Fund [A.C.A. 27-101-111]; the Drug Enforcement Fund [A.C.A. 14-21-201 through 14-21-203]; the Drug Control Fund [A.C.A. 5-64-505, A.C.A. 29-30-160, A.C.A. 12-17-105]; and possibly others that may have been established by county ordinance.

Fees to be charged by the County Sheriff are set forth in A.C.A. 21-6-307.  The Sheriff fees are divided 75% to County General and 25% to the Communications Facility and Equipment Fund.  The 25% amount does not have to be remitted to the county treasury – and can be retained by the Sheriff.  In fact, in strict accordance with the law the Sheriff maintains this money and fund and it is not subject to appropriation by the quorum court [AG Opinion #2002-008 and AG Opinion #2003-074].  The funds, however, are restricted to certain types of expenditure and the fund is subject to audit by the Division of Legislative Audit. 

However, in many counties the Communication Facility and Equipment Fund is on the books of the County Treasurer.  When the Communications Facility and Equipment Fund first became a part of the law in the 1980’s (was first called the Sheriff’s Radio and Equipment Repair and Replacement Fund – changed to current name by Act 662 of 1995) the Division of Legislative Audit did not think it was a good idea for the Sheriff to maintain control of the fund and suggested that they remit it to the County Treasurer (that was before Enron and when they made those types of suggestions).  There were some Sheriffs also that thought it was not a very good idea for them to maintain this money in their office.  Therefore, in many counties – contrary to what the law says – the Communications Facility and Equipment Fund is on the books of the County Treasurer.  In such case, the fund is a part of the county treasury and is subject to quorum court appropriation [A.C.A. 14-14-1102(b)(2)(C)(i) and Arkansas Constitution, Article 16, Section 12].

At the discretion of the Sheriff, any funds in the Communications Facility and Equipment Fund not needed by the Sheriff may be transferred to the county general fund. 

The 25% of Sheriff fees is not the only source of revenue for the Communications Facility and Equipment Fund.  One hundred percent (100%) of the commissions derived from prisoner telephone services provided in the county jail are to be credited to the Communications Facility and Equipment Fund.  However, the Sheriff may allocate up to 50% of the commissions deposited to the fund for the maintenance and operation of the county jail. [Note: Commissions from prisoner telephone services are addressed in A.C.A. 12-41-105 and the provisions of that code do not apply to Benton, Pulaski and Washington counties – the three counties in Arkansas with populations in excess of 175,000.]

Another source of “special revenue” for the County Sheriff comes from boat registration fees.  A percentage of those fees are credited to the County Aid Fund and remitted to the County Treasurers in the proportions thereof as between the respective counties that the total of the fees produced from each county bears to the total of the fees produced from all counties. [A.C.A. 27-101-111]

Upon receipt of these funds the County Treasurer credits the funds to the Boating Safety and Enforcement Fund – if the Sheriff has established a patrol on the waterways within the county.  Otherwise, the funds are credited to the County Emergency Rescue Fund for use exclusively by either the county or the cities within the county, or both, for operating and maintaining emergency rescue services.

If neither the county nor any of the cities within the county operate emergency rescue services the fees should be deposited into the Game Protection Fund for use by the Arkansas State Game and Fish Commission.

A county may provide the Sheriff with another Special Revenue Fund – a Drug Enforcement Fund.  For this fund to be established the quorum court must pass an ordinance establishing the fund and set a maximum balance for the fund – not to exceed $10,000.  There are restrictions on how the fund can be used.  Everything there is to know about the Drug Enforcement Fund is in Act 362 of 1997 (which has never been amended) and codified in A.C.A. 14-21-201 through 14-21-203.  These codes/laws are so straightforward that there are no AG Opinions addressing the meaning of these codes.

Another one of the Special Revenue Funds for use by the County Sheriff is the Drug Control Fund.  Information concerning the Drug Control Fund is found in the rather extensive “Property Subject to Forfeiture” law which is codified as A.C.A. 5-64-505.  Subdivision (i)(2) lays out the creation of the Drug Control Fund on the books of law enforcement agencies and prosecuting attorneys.  The Drug Control Fund moneys come from the disposition of moneys in the Prosecutor’s Asset Forfeiture Fund as outlined in subdivision (i)(1).  Moneys in the Drug Control Fund shall be used only “for law enforcement and prosecutorial purposes” – which is a rather broad definition of what the moneys can be used for.  There are several Attorney General Opinions dealing with the Drug Control Fund. 

In connection with the Drug Control Fund as established under A.C.A. 5-64-505 – at least two other codes are worth mentioning.  They are:

• A.C.A. 29-30-160 – This code delineates a process whereby a county’s Drug Control Fund could receive a percentage of proceeds from a drug task force which has been disbanded or is otherwise no longer in operation.
• A.C.A. 12-17-105 – This code allows the use of Drug Control Funds to meet the local match for a grant to a multi-jurisdictional drug crime task force receiving a grant award from the State Drug Crime Enforcement and Prosecution Grant Fund.

Of course, another great expense to the county in the realm of law enforcement is the incarceration of prisoners in the county jail.  There are a number of revenue sources for the operation of a county jail.  I have addressed and delineated those in a separate “question and answer” segment of the Association of Arkansas Counties FAQ’s.