Council Supports Budget

— City Council members decided Tuesday to wait another two weeks before approving a $134.9 million budget for 2013.

Mayor Lioneld Jordan’s budget plan represents a $13.6 million — or 11.2 percent — increase from 2012. The proposal, which predicts revenue in the city’s general fund will be enough to cover general fund expenses, is the first balanced budget plan since 2007.

At A Glance

Council Action

Fayetteville’s City Council met Tuesday and approved:

-A $6.3 million contract with Emery Sapp and Sons of Columbia, Mo., for construction of a flyover bridge connecting northbound College Avenue with westbound lanes on the Fulbright Expressway.

-A $7.2 million contract with CH2M Hill, the company that operates Fayetteville’s two sewer treatment plants. The contract is an $568,000 increase from 2012, primarily for work associated with dredging Lake Sequoyah.

Source: Staff Report

According to Paul Becker, finance director, revenue will exceed 2009 for the first time in four years.

“It’s taken us all this time to get there,” Becker said. “It looks like we have a budget that we can certainly afford without going into reserves.”

The city’s general fund, at $36.1 million, is expected to increase by about $2 million — or 5.6 percent. More than three-quarters of the general fund pays for employees’ salaries and benefits.

Jordan set aside $400,000 in his budget plan for employee raises. That equates to an average 2 percent increase for all salaried and hourly employees, Becker said. The mayor will evaluate whether to give employees an additional 2 percent raise this spring when the 2012 books are closed.

Jordan also plans to spend additional general fund money on increased health insurance premiums (up $183,000 compared to 2012); higher police and fire pension costs (up $158,000); more bookings at the Washington County Detention Center (up $54,000); and a new wellness program for city employees ($40,000). His budget proposal calls for a roughly $120,000 increase to the amount the city transfers to outside agencies, such as the Fayetteville Public Library and Ozark Regional Transit.

Capital projects on tap in 2013 include in-house street paving ($1.8 million), trail development ($1.5 million), an automated system for city billing and payroll ($1.2 million), an expansion to the city’s solid waste office and transfer station ($1.2 million), regional park development ($563,000), fire apparatus purchases ($426,000), library materials purchases ($375,000), drainage improvement ($200,000) and sidewalk construction ($115,000).

Bobby Ferrell, Ward 3 alderman, who has often criticized using reserve to balance the city’s budget, said Tuesday he supported Jordan’s plan.

“I don’t think I’ve ever voted to approve a budget since I’ve been here,” Ferrell said. “I feel comfortable with this.”

City officials expect to end 2012 with more than $12 million in reserve. That’s more than double the amount officials are required to keep on hand.

Matthew Petty, Ward 2 alderman, encouraged City Council members to devise a plan in early 2013 for spending some reserve money. He also said city officials should look at filling some of the 21 full-time positions that have been held open since 2009.

“I think this is the time we’ve been waiting for over the last four years,” Petty said.

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