SPRINGDALE — The City Council approved a 2012 budget Tuesday, despite opposition from one member.
The budget was approved, 7-1. Alderwoman Kathy Jaycox questioned the city’s payment to the Springdale Chamber of Commerce before she voted against approving the budget.
AT A GLANCE
Springdale Shrinks, Lowell Grows
On Tuesday, the council approved detaching the northernmost section of almost 2,500 acres the city annexed in July. The property, which is south of Arkansas 264 and west of Lowell, will go immediately to Lowell, which asked for the change.
Lowell’s council approved an ordinance in November asking for the detachment. The ordinance allowed Lowell to annex the property if Springdale approved its own ordinance.
The Springdale council didn’t vote on two earlier Lowell ordinances but it did approve a similar one from Cave Springs asking for property adjoining its city limit.
Source: Staff Report
“The city paid the chamber $227,000 this year,” Jaycox said. “I doubt the accuracy of the numbers presented by the chamber. We need more accountability and transparency from them.”
The chamber receives all its figures from the city clerk’s office, said Perry Webb, president and chief executive officer of the chamber.
The chamber has a $150,000 contract with the city to provide economic development. Its contract was boosted $50,000 to start 2010, Webb said.
The chamber also has a $60,000 contract with the Springdale Advertising & Promotion Commission and a $17,400 contract with the Springdale Public Facilities Board to provide staffing.
“The A&P contract has not been raised since 1996 and the public facilities contract hasn’t been raised since 1998,” Webb said.
Jaycox proposed establishing a committee to work with the chamber to see the city received invoices for expenses. No other council member commented on her proposal during the meeting.
Jaycox said she may pursue the idea further.
“I didn’t have time to visit with the mayor or anyone else on this,” Jaycox said. “This is the first time anyone has heard the idea.”
The council held two work sessions on Mayor Doug Sprouse’s budget before approving it.
The budget projects general fund revenue at $29.77 million and expenses at $30.15 million. The shortfall in revenue, about $380,000, would be made up from unrestricted money in the general fund.
Unrestricted money in the general fund as of October was $4.72 million. The balance, including reserve, was $5.88 million.
The original budget sent to the council projected a $410,000 shortfal, but a decrease in the city’s worker’s compensation rate will save the city about $36,000, said Wyman Morgan, city director of administration and financial services. The reduction is about 1 percent of the city’s cost for worker’s compensation.
“The mayor and his staff have shown they can save money when the opportunity comes up,” said Alderman Bobby Stout, chairman of the Finance Committee. “We were given a solid budget and we know the city will continue to keep their spending tight.”
The biggest change in each department’s budget came from a step increase for employees proposed by Sprouse.
Employee salaries are determined by where positions are ranked on a pay scale. Incremental increases are called step raises.
The size of step increases vary, but should be between 4 percent and 5 percent, said Wyman Morgan, finance director. Those who have reached the highest step would receive a $900 bonus.