While other municipalities may be struggling financially, the City of Arkadelphia seems to be doing quite well, according to City Manager Jimmy Bolt, who will present his proposed 2010 budget to the City Board of Directors Thursday.
Tuesday, Bolt said city officials based the budget on not projecting any growth in sales tax next year. “That’s typically how we budget,” he said.
“In 2008, we saw the economy going in a direction we didn’t like, so we started budgeting for a downturn for the 2009 budget. We prepared for less revenues.”
The state government is making budget cuts, affecting such local entities as Henderson State University.
The Clark County Budget and Finance Committee held several meetings in preparation of next year’s budget, and justices serving on the panel all seemed to share a fear that cuts would have to be made since tax revenues are dwindling.
Meanwhile, the City of Arkadelphia has made several financial commitments, including the purchase of a new police car fleet, building a new fire station and remodeling and operating the Royal Theatre.
So how is Arkadelphia able to make such large purchases in a flailing economy? “I believe we are faring well in our revenues,” Bolt said. The reason: “The universities provide us with a stable economy.”
But the city is not completely bulletproof from the recession, as Bolt said there will not be any new hires or positions created in 2010, with the exception of hiring a manager for the Royal and the reassignment of a landscaping position for the street department.
All of the capital expenses which city directors have approved “focus on driving down short-term and long-term fixed costs.” The hybrid police fleet, which is expected to arrive in December or January, will cut down fuel and operating expenses in the long run, Bolt said. And the fire station (for which the proposed budget calls for $1.05 million in 2010) will be LEED certified, which means that the design and construction of the facility will be “high-performance” and “green” in the way of energy usage.
As for the Royal, the proposed budget calls for spending $98,000 for four months of operation (including the hiring of a manager for eight months), $15,000 for startup costs (such as advertising and promoting the business), and $1.25 million (which will include refinancing the building into the bond issue).
A breakdown of the 2010 budget — with projected revenues and expenditures, respectively — is as follows: General Fund ($10,082,501 revenue and $9,447,533 expenditures); Street Fund ($1,046,600 and $1,038,886); Water and Sewer ($3,918,111 and $2,981,205); Franchise Fee Fund ($977,706 and $977,461); Municipal Judge Retirement ($210,000 and $210,000); Fireman’s Act 833 ($41,250 and $40,000); District Court Cost ($16,906 and $16,906); Administration of Justice Act 1256 ($295,485 and $295,484); Debt Service Fund ($116,992 and $0); Revenue Bond Fund ($261,483 and $261,483); and Re-Use Fund ($162,894 and $162,894).
Bolt said city staff took the “same approach as last year” in the budget process, taking “accessible risks to attempt to reduce costs.” Bolt said the city is also taking advantage of low construction costs and low interest rates, both of which result from the  recession. Bolt said there has been “no better time historically” to take advantage of building and financing.
But “there is the sense that we can’t be as aggressive in areas as we would like to be” with street improvements and other city projects. However, he said, Arkadelphia is better off financially than most cities in Arkansas, including Fort Smith and Little Rock. “Other cities are looking at how — not if — to lay people off.” He said he has not spoken with cities like Malvern that share similar populations or demographics as Arkadelphia.
Bolt is proposing the 2010 budget be passed as a resolution rather than as an ordinance. The only difference would be that a resolution is not required to be published in the newspaper. He did say, however, that the budget would remain as transparent as it has in past years.
The meeting is scheduled to begin at 7 p.m. Thursday in the Town Hall Boardroom.
The public is invited.