For the second time in five weeks, City Council members met in a Committee of the Whole to review and discuss the budgets being presented by city department heads.
The draft of the amended budget presented showed total receipts and expenditures of $16,512,745, only slightly less than the $17,034,579 budget presented in the Nov. 7 Committee of the Whole meeting. The budget was tabled at the Nov. 15 City Council meeting. A committee meeting set for Dec. 13 was cancelled as department heads did not turn in amended budgets in time for the city clerk to prepare them for the council members.
The city's 2022 budget was $14,541,115.
City Clerk Sandy Button presided in the absence of Mayor Jackie Crabtree.
"Here is the draft amended 2023 budget with new figures and the impact fee schedule since 2004 showing growth of city, how it's growing," Button said, saying the impact fees are "down a little this year ... we've already done almost 20 impact fees for December, last year we did 40."
"If the money does not come in, we can not spend it," she said explaining that when there is a budget line for a grant, but the grant is not received, the money "automatically goes of the budget."
"I believe water and sewer are where they need to be," Button said. "I don't believe they've asked for anything unintentional."
She said the money for the Street Department comes from state turnback, property tax and the city sales tax and the budget initially turned in by Street Department superintendent Nathan See and Monty Keene, who will become Street Department superintendent, when See takes the mayor's office, was about $990,000. "We told them it wasn't enough. We told them we knew we were going to get $1.3 million."
"The budgets have to balance -- receipts and expenses," she said.
City attorney Shane Perry said state audit regulations govern the city's budgeting practices.
"The budget has to balance -- we're doing a new budget for 2023 that HAS to balance," she said, explaining that the Council will be presented with an amended 2022 budget to address any changes in the year's spending.
Council members had requested department heads prioritize their requests and cut expenditures to stay in line with anticipated revenue, specifically targeting the Library and Fire Department.
The Fire Department budget increased from $1,106,500 to $2,082,100 with $285,500 allocated to capital improvements. Two of the largest increases in that department were LOPFI and APERS from $10,000 to $253,000 and salaries from $696,200 to $1,045,600. Travel and education increased from $7,500 to $40,000.
The Library budget increased from $67,910 to $88,640 with the portion of the library budget that is under City General increasing from $90,000 to $130,014.
Library director Alex Wright was questioned by council members about spending money to hire a lawn care firm since the city's employees were taking care of the lawn without cost to the library. She explained that the city employee was killed grass around the fences instead of weed-eating it.
Council member Cody Keene advised Wright decrease one of the full-time employees to part-time to save money and meet the recommended budget allocation. Council member Ginger Larsen said she wasn't opposed to keeping the employee on full-time and that costs should be cut elsewhere.
"Are retirement and payroll taxes that far off? It jumped from $90,000 to $130,000," Keene asked, referring to the line item for salaries for the Library in City General.
City bookkeeper Starla Billington said the city plans to change its retirement system to the Arkansas Public Employees Retirement System (APERS).
"I have to tighten everybody," Button said. "I have to make this thing work."
Wright said she has three full-time employees, one of whom does programming and social media. She said she and Alison are "more behind the scenes -- that was the point in making this position!"
"I could not run this library without her position," Wright said of the person who does programming and social media.
She said before she hired her, she did the social media. She said she mainly stays in her office working on initiatives, policies, training, records and looks for grants.
"We're paying somebody more than it takes to do it," Keene said. "It would it be beneficial to have this person to be part-time, not paying benefits."
Larsen said, "I did not come into library budget thinking about cutting a full-time employee. The question was about city general transfer... I also don't have a problem with you having three full-time employees ... I would like to see some things reallocated so you can get some things done there and serve the community."
Council member Merrill White asked Wright what her recommendation was to make the budget work.
"Specifically for her department -- charging for programming, but, given our impoverished community, I don't feel like we should," Wright said.
"I have to adjust for cleaning, adjust for mowing, I could readjust for everything," Wright said.
"The goal behind this (meeting) was to make adjustments," Keene said. "I felt like a slap in the face when there weren't adjustments made that could have been."
Keene said he would like to see the changes from Wright and Fire Chief Jared Powell delivered to Button by 3 p.m. Thursday so she can prepared an amended budget to send to council members prior to the Tuesday, Dec. 20, City Council meeting.
Keene applauded Police Chief Lynn Hahn for sending his amended budget with explanations as requested when requested.
"I know some people didn't feel like they needed to make adjustments," he said.
White said, "It makes a huge difference for us... all the facts are out there for us for numbers... it'll speed the whole process up."
Fire Chief Jared Powell decreased his budget by $449,700, according to Button.
"Those items didn't go away, we're just kicking them down the road," council member Steve Guthrie asked Powell, who assented.
"Like all the other departments, we need to prioritize -- like parking lot, roof, painting of building -- there's items that aren't going to go away... we just have to figure out how and when we're going to pay for it," Guthrie said.
Keene asked what has been spent so far for the Fire Department. Button said they've spent $1.5 million and taken in $1,487,000.
Powell said air packs ($200,000) and bunker gear ($40,000) were the "big overages."
White asked about capitol improvements.
Powell said he understands that if money is not available, the projects may not happen.
Keene asked how many employees are reflected in the 2023 budget. Powell said 17.
"The capital improvements are not going to be purchased without approval from this board," Button said. She noted there would be new administration and new council members in 2023.
Guthrie said it "makes sense" to paint the fire department, the water tower and the police station at the same time.
Keene said, "When I take the overall amount of $1.4 million ... everything employee based ... divided by 17" makes an average salary of $87,329, far higher than what the mayor will earn. He said that raises questions about the numbers. "It's already higher than what we've paid out this year."
Powell said, "LOPFI is expensive ... that's required by state law."
"We need to have a plan and take care of the small stuff before it becomes big stuff," Guthrie said.
"The fire chiefs have been told there's no money to do anything so when there's a leak, they just put a band aid on it," Larsen said. "And, the sales tax that we passed is a huge benefit to the city. It's going to be a huge benefit to the fire department ... all of that is new.
"We have to be able to say 'yes' sometimes," Larsen said.
The budget was scheduled to be discussed on the agenda for the Tuesday, Dec. 20, City Council meeting.