PRAIRIE GROVE -- City Council members at their November meeting looked over a preliminary $2.47 million budget for the general fund in 2018.
The general fund includes expenses for administration, police, fire, district court, library, parks and recreation.
Larry Oelrich, director of administrative services and public works, gave a budget overview to council members, saying he expected a few changes to be made in the final budget that will be presented at the Council's December 18 meeting.
For one, Oelrich said, a proposal for another school resource officer most likely will be withdrawn and instead the police department will hire a part-time administrative employee.
Projected revenue for 2018 is $2.45 million. Major revenue producers will be $280,000 in franchise taxes, $292,000 from property taxes, $256,000 from the county sales tax and $110,000 from building permits and licenses.
Oelrich said the city's Park and Recreation Department will have several budgeted needs in 2018, with the largest cost being the city's cost share and engineering to build a walking trail in Muddy Fork Park.
The city received a $140,000 state highway grant and the city's portion of the project will be $30,000 for the trail and $27,000 for engineering.
Other parks and recreation projects for the year include paving a parking lot for about $50,000 at Muddy Fork Park, replacing the wood fence at the aquatic center for $15,000, new roofs on four dugouts at Rieff Park and possibly rebuilding the brick walk in Mock Park.
One recommendation on the table is to consider increasing day fees at the aquatic center from $4 to $5. The $4 fee has been in effect for at least 10 years.
Oelrich said increasing the daily use fee by $1 would bring in about $16,000 to help with park operations.
Other planned expenses include a new sign in front of the building that houses District Court and the Police Department.
In addition, Oelrich said, the Council needs to decide what to do about the former Water Department building. The original structure was built in 1933 and part of the building needs a new roof. Options are to repair the building or demolish it, Oelrich said.
Preliminary budgets for departments that fall under the General Fund for 2018 are:
• Administration, $683,525
• Police, $808,758
• Parks & Recreation, $430,150
• Fire, $217,392
• District Court, $150,790
- Library, $187,678
The preliminary budget for the Water Department shows $2.3 million in revenues and $2.1 million in expenses.
Revenues include $1 million from water sales and $952,000 from sewer fees. Expenses include $411,000 for bond interest on debt, $460,000 for salaries, $300,000 for water purchases and $150,000 for repairs and maintenance.
Oelrich said the city does not yet know what it will cost to extend a sewer line along U.S. Highway 62 to connect the Valley View area to Prairie Grove's sewer system. This will change the budget throughout the year, he said, but added he will probably recommend using leftover sewer bond funds from 2012, along with reserve funds, to pay for the project The city does not plan to borrow any money, Oelrich emphasized.
The Water Department budget includes one new position. Oelrich pointed out staff was last increased in 2004 and the customer base has grown by 50 percent since then.
"We have needed this position for years but have put it off and put it off to save money," Oelrich told Council members.
The city will not seek a rate increase for water or sewer, Oelrich said.
The preliminary street fund for 2018 shows projected revenues of $660,000 with expenses at $624,000. Revenues include $317,000 from the county 1-percent sales tax $211,000 from state turnback funds and $90,000 from the highway construction tax.
Expenses include $162,000 for salaries, $150,000 for repairs and maintenance and $90,000 for sidewalk construction. Oelrich said repairs and maintenance may include some street overlay projects, if financially possible.
The preliminary budget for the Sanitation Department is $448,000, compared to $417,000 in 2017. The city does not plan to increase trash rates in 2017. Income has increased significantly because of housing growth in the city, Oelrich said.
General News on 12/06/2017