Council Amends Budget To Reconcile Actual Expenses/Revenue

FARMINGTON — The City Council last week voted unanimously in favor of adopting an amended budget for 2018 after ending the year $241,033 over the budgeted amount for the city general fund.

The amended budget shows actual expenses and actual revenue for 2018.

Discussion on the agenda item took place toward the beginning of the night, with Mayor Ernie Penn giving the council an explanation for each line item on the budget in which the amount spent exceeded the amount budgeted for the year.

The city overspent in a number of different categories for the administrative budget, such as the “additional services” category, which had a budget of $160,000 while the actual amount spent was $232,090.

The difference, Penn said, resulted from a $100,000 transfer to the debt service account for the purpose of subsidizing a sewer surcharge that is being assessed to pay for the city’s sewer expansion project, Penn said.

Other examples include the police department, which exceeded its $36,000 materials and supplies budget by more than $64,000. Penn explained the city went over budget in this area because the police department purchased a new camera system in 2018 to take advantage of a discount available at the time.

Additional overspending occurred in the administrative department for insurance costs, professional services, technical support, travel and training and utilities, and in some line items under the budgets for police, fire, parks and courts.

Penn reminded Council members to keep in mind that the city also ended the year with $1.1 million in additional revenues, offsetting the exceeded amount.

The city projected to receive $3.1 million in revenue for the general fund. Actual revenue for 2018 was about $3.4 million. The biggest change was revenue received from the city’s local sales tax. The 2018 budget shows the city expected to receive $850,000 from the city sales tax but actual receipts were almost $1.4 million. The city collects a 2 percent local sales tax. Of this, .50 percent is dedicated to pay off two bond issues for street and parks improvements.

Prior to the budget discussion, Penn delivered the annual State of the City address, noting the social and economic growth that took place in Farmington last year, while also looking forward to areas of progress expected in 2019. Capital improvement projects to be finished in 2019 include a new public works building, which is slated to be completed in March, as well as improvements to Creekside Park expected to be completed by the end of June 2019, Penn said.

Other capital improvement projects to expect this year include the expansion of the public library and the police department’s portion of City Hall, he said. There are also plans to overlay and repair Clyde Carnes Road and complete a drainage improvement project near the vicinity of Garland McKee Road and the Meadowsweet subdivision.

In other business, the board:

Unanimously approved a contract with Area Agency on Aging of Northwest Arkansas for 2019 in the amount of $25,000. The money from the city will be used to supplement the director’s salary and help facilitate programs at the center. This contract was also approved in 2018.

Unanimously approved a contract with the Farmington Booster Club, which has agreed to operate the concession stand at the Farmington Sports Complex during the 2019 baseball and softball season, provided that the city waives its usual fee of 10 percent on gross sales.

Unanimously approved a new rental fee schedule for those wishing to play on fields at the sports complex.

Unanimously approved a request from police Chief Brian Hubbard to purchase two 2019 Dodge Chargers for $72,000. They will be used as patrol vehicles and this amount includes the cost of outfitting the vehicles with the necessary equipment.

Unanimously approved the renewal of an employment contract between the city and Farmington School District for a school resource officer.