Alexander council approves final 2017 budget and budget for 2018

(CORRECTION: The cost of the fire truck should have been $975,000 not $175,000. We apologize for the error.)

The Alexander City Council approved the final amended budget for 2017 in which spending totaled $2,768,518 for all departments. Revenue for 2017 came in at $2,225,208. With the addition of $1,011,146, carried over from 2016, the budget had an available dollar amount of $3,236,354.

Council members also approved the proposed budget for 2018. That budget estimates revenue at $1,786,359.13. The surplus from 2017 totals $579,679.90 giving the budget a total of $2,366,036.03. Estimated spending is $2,212,601.13.

The final 2017 budget shows revenue for the general fund at $391,356. There was a carryover of $185,761 from 2016 giving a total of $577,117. Total general fund expenses were $513,443.

The revenue and expenses numbers for the general fund do not include $914,604 generated by two one-cent sales and use taxes. That revenue is first put into the general fund and then distributed to the fire, police and park funds as required in the two referendums approved by voters in the early 2000s. The first referendum designated the entire one-cent for the fire department. The second referendum divided the one-cent sales tax giving one-eighth-cent to the fire department, five-eighths-cent to the police department and two-eighths-cent to parks and recreation.

The police department receives most of its revenue from the city sales tax and from bonds and fines. The revenue for 2017 came in at $470,904. Adding to that a surplus of $168,138 from 2016 the police department budget had an available revenue total of $639,042. Expenses for 2017 totaled $566,482.

The fire department had revenue in 2017 totaling $590,613. Most of that is from the city sales tax. At the end of 2016 there was a carryover amount of $3,774. With an additional cash transfer of $13,488 the fire department fund had a revenue total of $607,875. Total expenses were $627,286, a deficit of $19,411.

In a telephone interview City of Alexander Alderwoman Juanita Wilson, who is familiar with the situation, said the deficit is, “One of those end-of-the-year issues that couldn’t be helped.”

Besides the timing of when monthly funding is received, when payments are due and being the end of the year, there was the added problem of transferring funds from the city’s old accounts at ArVest Bank in Bryant to new accounts at First Security, also in Bryant. The move has been completed and each department is back to operating out of one bank account per fund. The council approved that change in September, 2017.

The parks department, which receives nearly all of its funding from the city sales tax, had revenue in 2017 totaling $440,247. At the end of 2016 there was a carryover of $204,064 giving the fund a total of $644,311. An additional $103,829 was transferred from a closed-out bank account giving the fund a grand total of $748,140. Total expenses were $385,902.

The street department, which is funded by a portion of the state fuel tax and the road tax from Pulaski and Saline counties, received revenue of $332,088. With $449,409 left over from 2016 the fund had a total of $781,497. Total expenses were $675,405.

The January 22 meeting was the first regular meeting held by the council in 2018. The deadline for passing the budget is February 1.

The proposed budget for 2018 projects revenue for the general fund to come in at $643,245. There is a carryover of $2,122.42 from 2017 giving the general fund a total of $645,367.42. Total general fund expenses are estimated at $513,443.

Revenue for the general fund includes the new one-cent sales and use tax approved by voters in November, 2017. Collection of the tax is expected to begin April 1 and is estimated to generate $223,875 during the remainder of 2018.

Projected revenue for the general fund in 2018 does not include $895,450 generated by the other two one-cent sales and use taxes. As explained above, that revenue is passed on to the fire, police and park funds through the general fund.

Projected revenue for the police department in 2018 is expected to be around $370,810. Add to that a surplus of $76,398.01 from 2017, the police department budget should have available revenue of approximately $447,208.01. Expenses for 2017 are estimated at $441,026 leaving an estimated surplus of $6,182.01.

Estimated revenue for the fire department in 2018 is $613,075. At the end of 2017 there was a carryover amount of $27,441.87. Combined that gives the fire department fund a total of $640,516.87. Total expenses are estimated at $607,675, leaving an estimated surplus of $32,841.87.

The parks department is estimated to receive revenue totaling $196,329.13. At the end of 2017 there is a carryover of $359,645.65 giving the fund a total of $555,974.78. Total expenses are estimated at $202,907.13.

The street department in 2018 is estimated to receive revenue of $333,710. With $114,068.95 left over from 2017 the fund should have a total of $447,778.95. Expenses are estimated at $447,550 leaving a surplus of $228.95.

In other actions during the January 22 meeting;

Council members approved an ordinance, “Permitting council members, officials, or municipal employees to conduct business with the City of Alexander.” The ordinance sets a maximum dollar amount of $2,000.

Mayor Paul Mitchell explained that a city employee has been paid extra to come in when city hall is closed to clean. Mitchell said hiring city employees for other jobs has been a common practice in the past by other mayors. An auditor from Arkansas Legislative Audit has advised the mayor state law requires an ordinance must be approved by the council allowing such hirings. Since no existing ordinance has been found one was written and presented to the council for approval.

Council members also approved the Organization of City Council 2018. The document sets standards and rules for regular and special council meetings.

Police Chief Robert Burnett presented an annual report for 2017. Chief Burnett said the Alexander Police Department responded to 2,539 calls through the Saline County 911 dispatch center. He said that does not include calls made directly to the police department or contacts made by citizens while officers were on patrol.

Chief Burnett reintroduced Assistant Chief Richard Harper to the council. He has been on active duty with the military for the past year. Assistant Chief Harper thanked everyone for the support provided to him and his family. He also noted the changes that have been made while he was gone, including the new police cars.

Mayor Mitchell pointed out that an officer was hired to fill-in during Assistant Chief Harper’s absence. He said that individual will be kept-on and an eighth position in the police department has been added to the 2018 budget.

Fire Chief Mark Ridgeway reported that he has begun the process of submitting a grant request for the purchase of a new fire truck. The estimated cost is $975,000 but the city will only have to provide five-percent of the purchase price, about $48,750. The submission deadline isn’t until this summer but he said he will have it in early. By the time the grant is approved, if it’s approved, purchasing the truck won’t occur until 2019.

Mayor Mitchell said this winter’s first ice and snow allowed the street department staff to test the new snow plow and sand/salt spreader. Now that they know where the bad spots are he said the street crew can pre-treat the streets before a winter storm arrives.

Mitchell also announced the purchase of a used dump truck from Federal Surplus Property in North Little Rock for $3,000. The truck has 14,000 miles on it. The goal now is to buy a track hoe and use the two to clean ditches along city streets.

Mitchell reported now that the weather is warming the concrete pad for the new gazebo in the park has set. The gazebo parts have arrived and construction should begin sometime this week.

Due to the President’s Day Holiday is on the third Monday of February, the next regular meeting of the Alexander City Council is Monday, February 26. Meetings start at 6 PM and are held in the courtroom at the City of Alexander City Hall. The public is invited to attend.