Prairie Grove Adopts $6.1 Million Budget

PRAIRIE GROVE -- Prairie Grove City Council approved a $6.2 million budget for 2017 at its December monthly meeting.

The city projects to receive $2.1 million in revenue for its general fund, which serves administration, police, fire, parks department, library and courts.

Projected revenue for the general fund includes $273,000 from property taxes, $255,000 from franchise taxes and $240,500 from the county 1-percent sales tax.

Revenue from property taxes and the county sales tax is expected to be up in 2017, compared to 2016, but city officials were conservative in estimating the increase, according to Larry Oelrich, director of administrative services and public works.

Property taxes, for instance, should increase by 7 percent based on appraised values in 2017 but Oelrich said he only budgeted a 5 percent increase. He expects the county sales tax revenues to go up 2-3 percent but only budgeted for a 1-percent increase.

Budgets for the general fund will be $675,000 for the police department, $630,000 for administration, $250,000 for parks department, $183,000 for fire department, $167,000 for Prairie Grove Public Library and children's library and $137,000 for district court.

One change in the police department is that a part-time administrative position will be replaced with a new full-time police officer position. This will give the department 11 full-time officers on staff.

The city's street department's budget for 2017 is $586,000. Projects for 2017 include sidewalk construction and some road resurfacing. Equipment purchases for 2017 include a new commercial mower and larger brush hog. The equipment will be purchased using the equipment reserve account.

The city's water department accounts for about $2.2 million of the overall city budget and it generates its own revenue through sewer fees and water sales.

The city projects to receive $770,000 in sewer fees and $980,000 in water sales for 2017.

The sanitation department also is self-funded and has a $417,000 budget for the new year.

Debt service is $700,000 for 2017: $495,500 for a 2012 bond issue and $302,000 for a 2014 bond issue.

The city of Prairie Grove collects a one-half cent sales tax with one-fourth of this going to parks and recreation and one-fourth dedicated to capital improvements.

For 2017, the city expects to collect about $226,000 from the local sales tax. This money will be used to purchase a new police vehicle, paint the aquatic center's main pool and make final payments on the two buildings that house City Hall, police department and district court.

The city's budget also includes a 2.5-percent cost-of-living raise.

In other business Dec. 22, Council members placed a revised amendment to the city's sign ordinance on first reading.

The Council first began looking at changes to its sign ordinance in May to make sure the city's sign requirements would fall in line with a U.S. Supreme Court ruling.

Aldermen mainly have been discussing how to handle real estate signs. The revised ordinance would allow one sign, not exceeding 8 square feet, per tax parcel in a residential zone. On undeveloped lots at the entrance to a platted subdivision, the ordinance would allow a sign not to exceed 32 square feet.

The Council tabled an ordinance to approve an interlocal agreement with Washington County on community sewer systems and amended an ordinance to remove loitering as a criminal activity. The Arkansas Supreme Court recently ruled that panhandling or begging cannot be criminalized.

General News on 12/28/2016