Budget Talks On Prairie Grove Council Agenda

PRAIRIE GROVE — Prairie Grove City Council will consider the city’s 2016 budget at its meeting, 7 p.m. Monday, Dec. 21 in the District courtroom.

Larry Oelrich, director of administrative services and public works, said city officials are conservative when projecting revenues each year. Revenue from the county sales tax, for example, is up by 3.5 percent this year but for 2016, Prairie Grove is estimating county sales tax revenues at a 1 percent increase. The city’s local sales tax revenues also are up by more than 5 percent but the 2016 budget projects a2 percent increase.

The proposed 2016 budget proj-

ects the city will receive $1 million in revenue for the general fund from income that comes through the administration department, including $ 251,000 from property taxes, $ 226,000 from county sales tax and $ 258,000 from franchise taxes.

Expenses for the administration department total $593,000: $132,000 for sala- ries, $90,000 for bonds and insurance, $55,000 for legal expenses and $ 56,000 for utilities.

Budgets for other departments are fire, $ 202,478; parks and recreation, $236,385; police, $672,836.

The library’s 2016 budget is $157,000. Of this, $33,000 is allocated for book purchases and $88,000 for salaries.

Some revenue that comes through the administration department is used to offset expenses in district court, fire and police. The proposed budget shows the city would have a deficit of about $11,000 for 2016, but Oelrich said the city has started out with a proposed budget deficit for the past five or six years and has not ended the year with a deficit.

For 2016, the city will carry over a $400,000 balance, he said.

The city of Prairie Grove collects a one-half cent sales tax with one-fourth of this going to parks and recreation and one-fourth dedicated to capital improvements. For 2016, Prairie Grove projects to take in $234,000 from its half-cent sales tax. Budgeted expenditures for capital improvements are $30,000 for a new police vehicle and $ 61,362 as an annual payment on the two buildings that house City Hall and the police and district court.

Prairie Grove also collects a 1 percent sales tax for sewer bonds and a threefourths cent sales tax for a 2012 bond issue.

The sanitation budget projects $403,365 in revenue and $400,454 in expenses. The water department projects to take in $2 million in revenue, including $730,000 from sewer fees and $950,000 from water sales, with $2 million in budgeted expenses.

For the street fund, the city estimates $926,810 in revenue and $ 910,278 in expenses. Budgeted items for the street department are $375,000 for the Parks Street bridge replacement, $ 125,000 for repairs and maintenance, $ 60,000 for sidewalk construction.

The budget includes a 1.5- percent cost of living increase for city employees. Oelrich said some positions may receive additional increases as warranted.