The 2013 Lowell budget, recently approved by aldermen, reflects almost $1 million increases in anticipated revenue and expenses.
Revenue for 2013 is expected to peak at $8,111,478 compared with $7.1 million this year. The increase in revenue includes an estimated $130,509 from the half-percent highway tax approved by voters, a fire department grant, increased sales tax revenue based on growth and opening liquor stores, according to the budget.
By The Numbers
Lowell 2013 Budget
Lowell officials recently approved the 2013 budget.
• Revenue is estimated to reach $8,111,478 compared with $7,120,832 this year.
• Expenses are expected to hit $7,813,557 next year, compared with $6,934,944 this year.
• Cash reserves are expected to be $940,191 in 2013, or two months of operating expenses, as mandated by city ordinance.
Source: Staff Report
Expenditures next year, estimated at $7,813,557, compared with $6,934,944 this year, include an across the board 1.5 percent raise for employees, some merit raises, higher health insurance premiums and addition of a fire station on the west side of Interstate 540.
“We need a fire station on the west side of town. That’s our projected growth area,” said Alderman Kendell Stucki.
There is $725,200 set aside for the proposed fire station in the 2013 budget.
“We aren’t sure we can build a fire station for that amount. We may not be able to start construction next year, but it’s a beginning,” Stucki said. Officials may have to carry the money over to 2014 and add to it to build and equip the station.
The proposed station will be located near the Atwoods store under construction on Arkansas 264. Other businesses in a nearby industrial park and three housing subdivision farther west need the fire protection, Stucki said.
“I am pleased with the budget. A budget is like looking into a crystal ball. It’s really just your best guess on revenue, and revenue controls your expenses,” Stucki said.
“I think we need to spend taxpayer dollars wisely and be good stewards,” he said.
Alderman Dean Bitner said the budget is just what the city needs.
“We are in a perfect position right now. I believe the economy hit bottom and we are on the way up,” Bitner said.
He expects the city to receive additional sales tax revenue from the sale of alcohol in package stores later next year.
“Like liquor stores or hate them, they will bring in additional revenue. I don’t know how much, but it will be revenue. I think if we keep our eye on how we manage tax money we are in a great position for growth,” Bitner said.
Not every council member is excited about the 2013 budget.
Alderwoman Janette Lasater and Alderman Thomas Evers, didn’t vote against the budget, but voted “present” when the roll call vote was taken.
“There were a couple of things I just couldn’t approve in the budget, that’s why I voted ‘present,’” Lasater said.
She said she couldn’t support the merit raises given to seven employees, and was against paying more than the appraisal price for a piece of property.
“The property was appraised at $80,000 and we are going to pay $126,000 for it. I just don’t think that’s right. I don’t think that makes us good stewards for the taxpayers,” Lasater said.
She is in favor of buying the property because it will be beneficial to the city park system, just not at an inflated price. The property is across the street from Lowell Elementary School.
Evers could not be reached for comment Monday.
Mayor Eldon Long could not be reached for comment Monday.