Lowell’s council to weigh $15M budget proposal
9% employee raises in plan
LOWELL — City employees would see a 9% cost of living raise under the proposed 2023 budget, Lowell leaders said at a budget discussion last week .
City staff presented a proposed $15 million budget for 2023 at a City Council meeting Nov. 15. The council will consider adopting the budget at its next meeting on Dec. 20.
The entire budget includes about $15.1 million in revenue, $15 million in expenses and capital projects and a surplus of $48,059.
The proposed 2023 budget represents an estimated $1 million increase in expenses compared to the budget approved for 2022. Most of the increase in expenses would come from wage increases, according to Finance Director Darcy Richard.
Revenue is estimated conservatively because of the possibility of a recession next year, Richard said. Strong general fund reserve would keep the city afloat in the event of a recession, she said.
Revenue from franchise taxes and business licenses have continued to grow, though permit revenue may decrease next year due to supply chain issues, she said.
The proposed general fund budget is $11.7 million. Most city departments are included in the general fund, though street and utility funds are separate.
Just under half of the general fund goes to employee salaries.
An estimated $8.7 million in city and county sales tax revenue is included in the general fund budget.
The police and fire departments are the most expensive departments in the proposed budget’s general fund — expenses, including personnel costs and capital projects — total about $2.9 million and $3.1 million, respectively.
The Street Department is requesting more than $3 million, an increase of $486,000 from last year’s adopted budget.
Competition with surrounding cities has made it difficult to fill new positions, but the proposed raise should help a little with recruiting and retention, Richard said.
The police and fire departments are requesting additional pay increases for employees who earn specific certificates. Police certificate pay would increase from about $9,000 to about $40,000. Fire employees are not currently compensated for earning certificates, according to Richard.
The city is also working on a step pay structure — wherein pay rates increase regularly on a set schedule — for next year’s budget, which other cities offer their employees, she said.
Lowell may not be able to compete with cities with larger revenue sources, such as Rogers and Springdale, but the wage increases make the city more competitive with smaller municipalities like Cave Springs, she said.
Every department head has said their employees’ wages are not competitive, according to Richard.
“My big goal for this budget is to make competitive wages for our employees,” she said. “We’re hiring people with no experience and no skills because we can’t afford the people who have the skills, so we’re becoming a training center.”
Competitive salaries are especially necessary for emergency services because of the amount of traffic that moves through Lowell each day, said Eric Schein, a Ward 2 council member.
Fire Chief Pete Melnicki said lower-tier fire department employees don’t receive a livable wage and cannot buy a home in the region, despite working much more than 40 hours each week. Training and outfitting a new recruit with no experience is expensive and takes time, and some end up leaving within a year, Melnicki said.
Kendell Stucki, a Ward 3 council member, said he supports the raises, but is concerned about chasing competitiveness with other cities and not being able to pay employees in the future.
Richard said she believes the city can afford the pay increase and thinks a future pay structure should be maintainable.
Members of the City Council and Planning Commission also would receive raises in the proposed budget. Council members would be paid $300 per meeting, a $50 increase. Commissioners would be paid $125 per meeting, a $25 increase.
Other police department requests include $186,375 for equipment like dash cameras, ballistic shields and a radar trailer and $170,000 for capital purchases like four Dodge Chargers and one motorcycle. The department has applied for a grant to cover about $45,000 of the costs related to the dash cameras.
Fire department requests include $110,680 for capital purchases like three new vehicles. The department is also requesting promotional opportunities for three employees, which would require three new employees to be hired.
Miscellaneous projects are the largest expense for the street department, costing over $1 million. The department is also requesting $180,000 for capital expenses, including a snow plow.
The Parks Department is asking for $135,000 for Mudtown Days events and $80,000 for capital purchases, including a lawn mower. The Advertising and Promotion Commission will give $80,000 to help fund Mudtown Days and $11,500 for other special events.
The Information Technology Department is requesting $145,000 for computer software, including a software upgrade to improve efficiency, accessibility and transparency in city processes.
The Planning Department is requesting $15,000 to hire a videographer to help promote the city’s economic development.