The Bella Vista City Council got an in-depth look at the in-progress 2020 city budget during a Monday, Dec. 2 special work session.
The current proposed budget estimates revenue for 2020 at $18,484,771, a 5 percent increase over 2019's projected $17,658,509; as well as $18,448,902 in operating expenditures and $1,000,600 in capital expenditures, a 5 percent increase and 68 percent decrease, respectively, compared to the 2019 budget requests.
Finance director Cary Elsten said significant factors leading to the increase in expenditures include a headcount increase, -- with the police department requesting two additional detectives, street department requesting a mechanic and Community Development Services requesting a code enforcement officer -- as well as an expiring SAFER grant, which has paid a portion of salaries for nine firefighters but will decrease from 65 percent to 35 percent next year.
This is somewhat offset by the removal of two heads from administration, including one full-time accounts payable clerk, a part time accounts receivable clerk and a part-time communications assistant.
Medical insurance has also increased by 9 percent, she explained, and with the library's in-progress expansion utility bills can be expected to increase and two part-time workers are expected to be shifted to full time.
Mobile dispatch software is another increased expense, police chief James Graves said. The software, which goes on officers' in-vehicle laptops, is expected to cost $45,000 to $50,000 per year, but will improve communications between officers and dispatchers and allow officers to do more of their work in the field.
The price is steep, he said, but it will make officers safer and more efficient.
"It is something that's very necessary," he said.
The two additional detective positions are another necessity, he said. The criminal investigative division currently has four people working cases, including the division's lieutenant, which is not preferable, he explained.
Another of those is the narcotics officer, who is ranked detective but has his own caseload. This means there are two detectives and a city the size of Bella Vista should have at least twice that, he said.
The detectives in question also have a caseload of around 35 to 45 active cases each, well above the surrounding area's average of five to 12 active cases detectives in surrounding areas, he said.
Two more would be a huge help, he said.
"I think this'll do us good probably for a couple years," Graves concluded.
Elsten said that the city does expect to benefit from an increase in revenue from recently-instated internet sales tax, estimated to boost the city's income by $635,000.
Roughly half the city's income is sales tax revenue, she explained, with $2.3 million coming from city sales tax and $6.8 million provided by county sales tax.
Property tax is the next-highest income source, coming in at 15 percent and followed by state and county turnback funds that provide another 15 percent, she explained.
Franchise fees are the smallest portion of the budget at $1.7 million, or about 10 percent of the city budget, and it's the only income item expected to decrease, she said.
Elsten said it's important to note that her income predictions are based on ongoing revenue trends but she estimates low to be conservative.
"I'd rather come in over budget with our actuals, rather than under budget," she said.
General News on 12/04/2019