Mayor Frank Anderson was happy voters approved two pension millages in a special election Sept. 9.
Bella Vista voters were asked on the first ballot question for 1 mill to support pensions for uniformed fire employees. The second ballot question was for a half-mill for uniformed police officers.
With the passage of the two millages to support fire and police pensions, Mayor Frank Anderson didn’t believe the current general fund millage would go above the current 2.5 mills.
The city can raise its general fund levy up to 5 mills without a vote from the public.
Once he plugs in the numbers for a tentative budget, the mayor will be making a recommendation on the millage to the City Council.
The city must advise the Benton County Quorum Court about its general fund millage by Oct. 30 for 2014 taxes to be collected in 2015. The city doesn’t have to approve its 2015 budget until February.
Department heads are currently putting together their budget numbers. Anderson will be working with the departments in approximately two weeks, then will share the preliminary numbers with the council.
After the November elections, Anderson said he’ll likely involve the newly elected officials in the budget process, if they wish to participate.
Voters approved the pension millage for fire employees with 1,217 voting in favor and 890 against. They passed the millage for police officers by a margin of 1,196 to 910.
"I was relatively sure the people would support the pension millages," Anderson said. "They support public safety issues."
Residents did a good job of supporting public safety even before the city was formed, he added.
The city had to have another revenue source in order to open a new fire station in the Highlands gate area without making budget cuts or raising the general fund millage, Anderson said. The new fire station will need nine to 12 people to man it.
Anderson didn't like the idea of funding the pensions for both police and fire as well as personnel for the new fire station from the general fund because it would take away the flexibility for future needs.
"It was a wise move by the voters," he said.
Kelly Dostart of Citizens to Help Improve Public Safety said members of the group were pleased with the election outcome. The group consisted of former members of a mayor-appointed committee that studied possible revenue sources to fund fire and police personnel. CHIPS members spoke to civic groups, placed campaign signs and wrote brochures.
"We are thankful voters in Bella Vista saw the need to approve the pension millages," she said. "The committee is excited that Bella Vistans approved the millage so there is funding to staff the new fire station in the Highlands gate area and for additional police officers."
Taxpayers will see an approximately $30 a year increase on a home valued at $100,000.
By state law, the city is required to contribute to each uniformed employee's retirement fund with the Arkansas Local Police and Fire Retirement System, or LOPFI. Those pension contributions are paid out of the city's general fund. Police and fire employees also contribute 8.5 percent of their salaries.
One mill brings in about $450,000 annually. The city pays about $650,000 annually to the retirement system for both fire and police personnel.
Also by state law, cities are allowed to request up to 1 mill each for fire and police to cover this expense. Money generated from this property tax collection may only be used toward LOPFI contributions, which would then free up money from the general fund to operate a new fire station and to add personnel to the Police Department.
The cost of the fire personnel to man the new station is estimated at $500,000 annually.
General News on 09/17/2014