Prairie Grove revenue expected to increase in 2024

Official says budget will still be tight because of proposed raises

PRAIRIE GROVE — The city’s 2024 budget is expected to be tight because of proposed raises for city employees, according to a city official.

The city’s proposed 2024 budget includes a 5% cost of living raise for employees, two new police vehicles and a new part-time administrative position in the Police Department.

City staff presented the budget to the City Council at its Nov. 20 meeting, and an ordinance to adopt the budget will go before the council in December.

In an email sent to council members earlier this fall about the budget, Larry Oelrich, administrative assistant, said the “good news” is that city revenue is mostly projected to increase in 2024.

Revenue from the city’s local sales tax rates is about 11.6% ahead of what was projected for 2023 and is running 16% above 2022 receipts so far. Revenue from the county sales tax and franchise fees also is coming in above projections for 2023.

However, Oelrich said the budget will be tight next year because of the proposed raise — with some supervisory positions proposed to get a 6% raise — and because of increased costs in other areas, including health insurance. The two police vehicles, for example, will cost about $97,000.

For the 2024 general fund administration budget, the city projects to take in $3.06 million in revenue with $2.6 million in expenses.

The proposed budget for the Water Department is $3.94 million in revenue and $3.93 million in expenses.

The Sanitation Department budget estimates $833,604 in revenue with $814,420 in expenses.

The street fund shows projected revenues of $1.4 million and expenses at $2.3 million because of the Viney Grove Road extension and downtown project. The city is using reserve funds for those projects.

Even with a tight budget, the city projects being able to transfer money to reserves at the end of the year, Oelrich said.

“Anytime we’re in the black, I feel good,” Oelrich said recently.

During budget discussions, Council Member Chris Powell recommended raising the salary for the mayor’s position from $60,000 to $70,000 for 2024, a 16.7% increase. Powell noted an increase would not only compensate Mayor David Faulk for what he’s doing but also future mayors and would bring the salary more in line with what’s paid by similarly sized cities.

The council last increased the mayor’s salary from $30,000 to $60,000 in 2020.

Faulk then recommended increasing the stipend paid to City Council and Planning Commission members for attending regular meetings because that pay also falls below what other cities pay. Prairie Grove council members receive $100 per regular meeting and planners receive $50 per meeting.

Faulk said he appreciated the recommendation to increase the mayor’s salary but told council members he did not want them to feel any pressure to raise his pay. He noted when he ran for office last year, he knew the position paid $60,000.

A survey by the city shows mayoral salaries in the area include Farmington, $72,000; Pea Ridge, $75,000; Johnson, $75,000; Lowell, $92,426; Gravette, $72,686; Greenwood, $65,994; Alma, $50,000; and Lincoln, $6,000 (since 2006).

For council members, comparisons include $225 per regular meeting in Farmington, $100 in Lincoln, $200 in Pea Ridge and $125 in Alma.

For planning commission members, Farmington pays $200 per regular meeting; Lincoln, $100; Pea Ridge, $175; and Alma, $25.

“We want to make these positions desirable so we have the best people in the seats,” Council Member Brea Gragg said.

Oelrich said he would look at the increases from a budget perspective and City Attorney Steven Parker would have an ordinance for the December meeting. Any changes in pay for the mayor, council and Planning Commission will require an ordinance approved by the council.

The suggestion was made to increase council members’ and planners’ pay a small amount each year to bring it up over time. For 2024, as an example, the idea would be to increase council member pay to $150 per regular meeting and Planning Commission member pay to $75 per regular meeting.

In other business, the council approved a water rate increase, which is effective Jan. 1. The increase is the result of a rate increase from the Benton Washington Regional Public Water Authority.

Prairie Grove water customers will pay 40 cents more per 1,000 gallons or about $2 more per month.

The city rate effective Jan. 1 will be $12.21 up to 1,000 gallons and then $8.08 per 1,000 gallons after that. This will increase again in 2025 to $12.46 for the first 1,000 gallons, then $8.33 per 1,000 gallons after that.

For the rural rate, customers will pay $31.14 for the first 1,000 gallons and then $8.08 per 1,000 gallons for 2024; for 2025, these customers will pay $31.39 for the first 1,000 gallons and $8.33 per 1,000 gallons.