SPRINGDALE -- City leaders have a lot more money to budget for 2019 compared to this year's $50 million budget.
Wyman Morgan, the city's director of finance and administration, said the city has nearly an additional $180 million to spend because of the bond program voters approved in February. The bond money, however, is restricted to capital improvements voters approved -- road projects, a new animal shelter, fire stations, parks and a city administration building that also will house the police department and district court.
2019 budget input session
When: 5-6:30 p.m. today
Where: City Administration Building, 201 Mayor’s Office
Information: 750-8559, springdalear.gov
The $224.6 million bond issue also included $47.4 million to pay off the 2013 bond issue and finance the new debt.
The city also will need to hire new firefighters for Station 7, scheduled to open in April across Har-Ber Avenue from Hellstern Middle School. Morgan said he also expects the city to fill the deputy director of Public Works job, a new position for the city. Longtime director Sam Goade retired this summer, and the city reorganized, putting Public Works under the umbrella of the engineering department.
City staff gathered Wednesday for the first of two public input sessions before they begin planning next year's budget. The next input session is from 5 to 6:30 p.m. today in the City Council Chambers at the City Administration Building.
Public meetings are just the first step in the budget process and department heads will begin building their individual budgets in August, said Mayor Doug Sprouse.
"Expect it to be tight as is our tradition," Sprouse said. "The department heads and staff know how to squeeze everything out of a dollar. We really pinch our pennies to make good decisions that will give the most return to the residents."
The mayor's office recently started a compensation study, comparing the salaries of each city employee with similar positions in other Northwest Arkansas cities. It's a process the city does about every five years, Morgan said.
Sprouse said the city might not be able to match those rates, but he does expect small raises for city staff.
"It's obvious that our goal is going to be to treat every employee right," Sprouse said. "We invest a lot in training, and when they go elsewhere for higher pay, it hurts."
Revenue collected from city sales taxes has increased -- 5.52 percent for the 12 months that ended in June as compared to the same time frame a year earlier -- which also adds to the pool of money the city is able to spend, Sprouse said.
"We probably generate less sales tax revenue per capita than any city in Northwest Arkansas," Sprouse said. "We continue to bleed a lot to surrounding cities. It's getting better, but it will take time."
Sprouse noted that plans for revitalizing downtown Springdale and growth around Arvest Ballpark remain important.
"It's so important we get it right," he said.
Morgan said the city also builds the budget with county sales tax revenue -- which is up 4.81 percent year-over-year. Other sources of funding come from property taxes citizens pay to the sate, franchise taxes on utilities and from various licenses and fees the city charges.
Input sessions are held every year before the budget process begins, Sprouse said. "It's a big factor for the department heads in planning their budgets. They get to come in here, meet the people and hear what they want."
A state law requires the mayor present each annual budget to the City Council for approval by Dec. 1, Morgan said. A city ordinance requires it by Nov. 1.
He also noted hearings with department heads to review those budgets might be delayed because some Council members face re-election votes in November.
NW News on 07/26/2018