The city's budget increase of 25% was approved unanimously by the four City Council members present at the Tuesday, Nov. 21, council meeting. It was discussed in depth at the Thursday, Nov. 16, council work session with department heads.
The 2024 budget of $20,899,257 was approved with no dissent. The increase from the 2023 budget of $16,533,328 is due in large part to the increase in revenue brought in by the 1-cent city sales tax increase approved by voters in September 2021 and collected beginning in January 2022.
According to the budget, $1,500,000 was brought in by the new sales tax.
The growth in the city in building and development also increased income and expenses.
Revenue from impact fees increased. Under impact fees in city general, the increase was from $702,000 in 2023 to $1,204,000 for 2024. Sewer impact fees, which were approved for the future, were listed at $499,500 for 2024. Water impact fees for 2024 were listed at $225,000.
Revenue from building permits increased from $450,000 for 2023 to $700,000 for 2024.
"This is pretty amazing," council member Cody Keene said. "Looking at the budget amount for our little town that's growing, I appreciate that this council has come together ... the department heads are doing a really good job. I'm so very proud of that."
"We have new employees, that made salaries go up a little bit," city clerk Sandy Button told the council. "Other than that, city general is pretty much the same."
Under city general, salaries increased from $450,000 to $525,000.
She also said the city plans to add a once a year clean up because city residents are asking for one.
"The bulk isn't enough for some people," Mayor Nathan See said.
The line item for the spring cleanup was $40,000 for 2024.
Department revenue and expenses for 2024 under city general included:
Administrative: $4,795,600;
Police Department: $2,256,946;
Fire Department: $$2,257,500;
Court: $157,650;
Library: $170,780; and
Park and Recreation: $85,100.
The new 1% city sales tax was approved with allocations for certain departments. The $1,500,000 was divided between Police $200,000; Fire, $250,000; Park $800,000; and Street $250,000.
The city Water Utilities Department budget reflected total income of $1,476,000 as compared to $1,465,400 for 2023.
The Street Department budget showed 2024 receipts and expenditures anticipated at $1,461,000, compared to $1,304,000 for 2023.
During the budget meeting, some council members asked for more specific line items.
Council member Jeff Neil, who is president of Pea Ridge Arvest Bank, said he works with budgets all the time and he said more line items can make the budget get out of control.
"Ultimately, our job is to look at these on a monthly basis and make sure something isn't jumping out at us," Neil said.
Keene agreed. "I work on multi-million dollar jobs ... the least amount of line items, the easier it is... more line items make the job harder," he said.
Button said the City and Town magazine runs an article every September from the Arkansas Municipal League advising city officials on how to do a budget. "We already are doing more than we probably should, but we do it to help our department heads," she said. "Any time anyone wants a print out, we're happy to do it. There are a lot of eyes that look at it."
Councilmen present were Jeff Neil, Cody Keene, Steve Guthrie and Ginger Larsen. Council members Nadine Telgemeier and Matt Blood were absent from the City Council meeting.