City amends budget

Closes out year’s business

Pea Ridge City Council voted to make the necessary amendments to the 2016 budget.

Before review of the budget began, City Clerk Sandy Button noted that most of the changes were good -- made to reflect additional income.

General Revenue for the year increased from $525,000 to $616,000. Income from court fines rose from $100,000 to $160,000 and income from building and electric permits more than doubled -- from $55,000 to $115,000.

Total revenue for the year increased from $3,206,090 to $4,170,800.

Despite a $3,000 decrease in administrative salaries, the department required a subsidy of $863,400. Engineering fees totalled $13,700 more than projected; building repairs increased from $7,000 to $36,000; and expenses labeled "other" rose from $20,000 to $446,000.

Vehicle repairs and maintenance for the Police Department rose from $10,000 to $22,000 and equipment repairs and maintenance rose from $4,000 to $6,100. The most substantial expense was the remodeling of the department building following a water leak. The initial cost was projected at $7,500 but totalled out at $31,000.

Salaries within the Court Department increased from $56,000 to $56,500 but, overall, the court budget was lowered from $91,600 to $91,050.

Salaries within the Public Library increased from $35,000 to $48,000 and group insurance of $1,000 was added as a line-item. The budget was increased from $42,890 to $58,040 in total.

Street Department revenue from county sales tax and property tax increased by more than $40,000. Expenses for utilities, street maintenance and repair, and fuel/oil decreased by approximately $10,000. Snow and ice maintenance funds were increased from $20,000 to $41,600 and funds for a drain culvert repair were increased from $20,000 to $40,200.

The Fire Department collected $5,000 more in fire collections than expected, bringing the final total to $120,000. Training and travel expenses decreased from $7,000 to $4,200 and equipment costs also decreased from $25,000 to $16,300. The most substantial purchase was a new vehicle at a cost of $77,850.

Savings in the amount of $90,000 was transferred to the Library Department, $32,000 of which was used to repair the building.

Revenue for the City Park more than doubled with the projected addition of $32,000 in sales tax income during 2017.

Cost of repairs and ground maintenance rose from $8,000 to $20,000 and capital improvement rose from $10,500 to $20,000.

Revenue and expenses related to the Highway Improvement Plan were both increased from $6,000 to $8,500. Income for this account is generated through court receipts and utilized for street maintenance.

Revenue and expenses for City Impact Fees doubled exactly, from $100,000 to $200,000.

The council voted to transfer $50,000 from Impact Fees to Street Fund.

During 2016, $1.25 million was transferred from a savings account to General Fund to be distributed to various departments as needed.

Ken Hayes, Water/Wastewater supervisor, presented aldermen with a Water Department rate study. He noted that this would not be the final draft as it has substantial errors in customer count as well as financial miscalculations.

Councilman Ray Easley asked if the city paid for the study and Hayes assured him they did not.

A three-year phase increase plan was suggested for the sewer rate.

For the first year the minimum charge would remain $12.50 and the cost would increase $0.85 per 1,000 gallons after. The second year the minimum rate would increase by $3.25 and the cost would increase $0.40 per 1,000 gallons after. The third year the minimum rate would increase by $3.25 and the cost would increase $0.40 per 1,000 gallons after.

The average water bill (which is 4,000 gallons) would increase from $25.70 to $36.25 over the three-year span.

Hayes noted that a public hearing must be held before any rate increases are voted on.

In other business, the council:

• Reviewed the statement of qualifications submitted by Mike Bearden of Slinkard Law Firm and voted to appoint him city attorney for the coming year.

• Voted to accept a contract with Credit Bureau Systems to provide billing and collection services on behalf of the Fire Department's ambulance operations.

• Voted to grant city employees a 3 percent cost-of-living wage increase in accordance with last year's raise.

• Voted to re-zone the property belonging to Reba Morgan at Lot 4 of Given's Place Subdivision, as residential instead of commercial.

• Crabtree noted that M.J. Hensley has retired from the Planning Commission. The city is currently seeking someone to fill the position.

General News on 01/04/2017