Budget Discussion Set

SALES TAX REVENUE PROJECTED TO JUMP SIGNIFICANTLY

— The projected 2012 Bentonville city budget figures for a rise in countywide sales tax, includes $40,000 to improve football fields at Phillips Park and gives employees a 3.6 percent raise across the board. The budget is set for discussion at the City Council’s Nov. 22 meeting.

The city’s portion of county sales tax revenue should increase “significantly” based on the latest census figures, said Denise Land, director of finance and administration. Bentonville’s allocation was judged on a population of 19,700. The latest census data reported a population of more than 35,000.

“We’ll be picking up more than a million based on the census,” Land said.

The 1 percent county sales tax is divided among Benton County government and its cities. The county receives about 20 percent of the tax, with the other 80 percent going to 22 cities. Bentonville’s portion will increase from 12.8 percent to almost 16 percent.

Bentonville also levies a 2 percent citywide sales tax. Revenue from the city tax has been on the rise as well, Land said.

“I’m hesitant to hit $8 million because I feel like I’ll jinx it,” Land said.

Council members took their first look at the budget at the Nov. 8 City Council meeting and are scheduled to vote on the budget after a committee gathering at the Nov. 22 meeting. The draft budget projects $114 million in revenue and just more than $112 million in expenditures, leaving an overall balance of $1.1 million.

Shawn Nicholson, activities director at the Benton County Boys & Girls Club, said he was happy to see the planned upgrades to Phillips Park’s two football fields. The fields see a lot of action during the season, he said.

“I think it’s a good decision,” he said. “There is definitely a need for it.”

The two fields are in almost constant use, with games four days a week and practices on at least two other days, Nicholson said. Soccer groups also play and practice on the fields.

“It’s very hard to keep grass on them because of the amount of usage,” Nicholson said.

The planned upgrades include crowning the fields so water drains off to the sides, adding new irrigation and resodding the fields, said David Wright, Parks and Recreation director. Work on the project will be the department’s top priority for the new year, with improvements starting within the next couple of months, Wright said.

Work on Phillips Park should be complete by early February so crews can start working on a planned project at Memorial Park. The 2012 budget includes $40,000 for improvements to the softball and baseball fields at the park.

The project will add sidewalks through an area that is now a “muddy mess,” Wright said. Workers will fix grading within the park and improve accessibility, he said.

Other capital improvement projects budgeted include $40,000 for a continuing gateway signage project, a $250,000 remodel project for Fire Station No. 2 and $50,000 for a 6-foot fence around part of the Bentonville Cemetery.

City staff will benefit from a 3.6 percent cost of living adjustment raise in next year’s budget, with most staff receiving a 4.2 percent overall increase when figuring in merit raises from 2011, Land said.

The cost of living allowance adjustment is the product of a city ordinance that states the mayor has the responsibility each year of determining if inflation warrants the raise. The increase is to be based on the annual recommendation of the Social Security Administration, according to the ordinance.

While budgeting for employee raises, the city is taking a conservative look in other areas. The budget does not project increases in property taxes or accrued interest.

“On property taxes, we’re flatlining what we budgeted in 2011,” Land said. “We don’t yet know the full effect of reassessments.”

The city is not budgeting any revenue from interest in 2012, Land said. The 2011 budget called for $133,000 in interest, but the city has collected less than $50,000 to date.

“We used to be looking at six figures,” Land said. “So we’re not going to plan for anything, and whatever we get on interest is gravy and to the good.”

The budget includes more than $3 million in outlays for professional services for 2012. The city will allocate $100,000 to the Bentonville/Bella Vista Chamber of Commerce, $30,000 to Downtown Bentonville Inc., $114,000 to Ozark Regional Transit, $37,500 to the Benton County Sheriff’s Office for prisoner housing and $115,000 to the Rogers Animal Shelter.

Mayor Bob McCaslin said he feels the proposed budget makes good use of residents’ taxes.

“The draft budget demonstrates good stewardship of the taxpayer’s dollar, pays respect to the volatile economy, values our employees and allows our city to continue to provide services at and exceeds expectation level,” McCaslin said.

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