City Budget Projects Growth

— The City Council took its first look at a 2013 budget Tuesday that projects 1.9 percent growth in both revenue and expenses over this year’s budget.

If approved, the budget will leave the city with a net of $1.25 million at the end of the year, despite adding 13 positions and shouldering the burden of increasing health care costs.

At A Glance

Professional Services

Bentonville’s budget includes $3.16 million for professional services. Some of the service payouts include:

Chamber of Commerce — $75,000

Water Quality Issues Working Group — $40,000

Downtown Bentonville Inc. — $30,000

Ozark Regional Transit — $120,976

Benton County Sheriff’s Office (prisoner housing) — $48,000

Rogers Animal Shelter — $121,000

Annual traffic timing study — $30,000

Officials for sports programs —$168,680

Source: City Of Bentonville

Denise Land, director of finance and administration, told council members that health insurance will be up 3.5 percent next year, while dental insurance will increase 4 percent. The city will cover the rising costs rather than passing them along to employees, she said.

“The city can afford to pick up the costs,” Land said.

Mayor Bob McCaslin added some neighboring cities are seeing health care increases as high as 20 percent.

“Our increase is 3.5 percent,” McCaslin said. “That number is more palatable than other cities are having to deal with.”

Salaries and benefits are budgeted at $28.3 million, an increase of $1.7 million over the 2012 budget. The new positions include six police officers, three telecommunications staff for the Police Department, a custodian for Public Works, and two maintenance workers and a recreational specialist for Parks and Recreation.

All expenses are up between 2 percent and 12 percent for line items in the budget with the exception of set-asides for capital improvements. Revenue is projected to go down in charges for services by 0.2 percent and special assessments and fines by 4.2 percent. The budget predicts increases in all other revenue, including a 5.4 percent gain in taxes.

Revenue from charges for services includes money brought in from utility payments. Land said she was hesitant to base projections off of 2012, which she called an “oddball year.”

“In 2012, we had a long, hot, dry summer,” Land said. “I’m not comfortable using 2012 numbers, so I went back to 2011.”

She projected 3 percent growth for electrical service payments and 2 percent growth for water and sewer.

The budget includes $11.8 million in capital expenses. Capital projects include $400,000 to continue phasing in automated water and electric meters. Some of that cost covers adding new accounts, not transferring over existing accounts, said Mike Bender, Public Works director.

Alderman Bill Burckart asked if the city was selling or scrapping the old meters. Bender said the city is selling the old meters for scrap at around $2 a pound. He projected the project would bring in around $170,000.

“Will it pay for the new meters?” Burckart asked.

“It will pay for a lot of new meters,” Bender said.

The Planning Department budgeted $25,000 for new trees along Walton Boulevard and $45,000 to continue adding signs for its wayfinding project with the Convention and Visitors Bureau.

The Fire Department is asking for $35,700 to add to its emergency pre-emption system that changes traffic lights to green as emergency vehicles approach. The program was started with federal grant money, and the city has added equipment for additional intersections over the last year.

The department also plans for three new vehicles for the chief, battalion chief and assistant fire marshal. The newest vehicle is a 2007 Chevrolet Suburban with 60,000 miles on it. The new vehicles will total $132,600.

The Police Department is hoping to add a digital ticketing system with money from next year’s budget. The $93,000 investment would buy about a dozen ticketing devices that officers could check out, along with software to interface with the department’s current system. The devices would include a scanner for the offender’s driver’s license and printer with thermal paper for the citation.

Chief Jon Simpson said the new system would make for more accurate record keeping and faster traffic stops.

The Street Department requested $312,230 for sidewalk improvement projects and $60,000 for pedestrian lighting, along with new trucks and equipment.

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