Eureka Springs City Council held its annual budget meeting on Dec. 8, where Finance Director Michael Akins went over capital and budgets with some of the city’s department heads. Mayor Butch Berry said that budgets are relatively stable from last year, but belts have tightened.
Public Works Director Simon Wiley began explaining his capital expenditures. Wiley said he needed a new truck with a new plow and spreader to replace the 2004 model they had. He also placed a request to order barricades for TED’s (Temporary Entertainment Districts). These would connect with chains, blocking the streets safely, creating a more open look than the old method of blocking streets with trucks. Also in his budget were a new pickup and a hydro-excavation trailer that uses pressurized water to shoot down into soil and a vacuum to suck it out. Wiley said this will make it easier to work on water lines that may have gas or fiber optic lines laid beside them.
Capital expenditure totals for the Street Fund is $190,000 with $90,000 for the truck with a new plow, $40,000 for street barricades, and another $60,000 for a new F-550. The Water Department has a budgeted capital expenditure amount of $67,500 to replace pumps, and Wastewater needs $127,000 for the hydro-excavation trailer.
Alderman Rachael Moyer asked Wiley what goals his department was aiming for in 2026. Wiley said they have developed a flushing procedure for sewer lines, and his team will be working on preventative maintenance on the sewer collection system. During that process they will be able to collect data for their Geographic Information System – a software they acquired in recent years to help map out the city and its water systems. With a surveying instrument that links to the software, they can collect and maintain an inventory of their systems. He said that the more data they have, the more money it is possible to save, versus having to hire out engineers. More data also makes it easier to meet funding requirements for grant applications.
Akins said the street fund is an enterprise fund, so it works by itself – with revenue and expenditures and a healthy bank account. Wiley told council they would see an increase in employee wages because they have hired two new employees for streets and are trying to meet average salaries for the area. Public Works employees make around $18/hour with full insurance benefits after a probationary period.
Alderman Terry McClung noticed the cost of insurance for water employees had gone up by 50 percent, about $10,000 – and asked Akins if they could shop around for bids. Akins said they could if that was council’s request. McClung also expressed concerns about the cost of moving utilities for the roundabout set by ARDOT to go at the intersection of Hwys. 62 and 23, noticing that was not included in the budget.
In Nov. 2021, city council agreed in Resolution 812 to pledge $250,000 for the roundabout with ARDOT to provide all additional funding necessary for the project.
Wiley provided clarification that Philip Lewis Engineering was working to finalize those numbers before they can include it in the budget and that ARDOT was still working through initial legal processes before the city can move ahead. Alderman Susane Gruning said perhaps the engineer could help push the agenda forward. Akins emphasized that the budget is a living document – that procedurally, it must be approved by the Jan. 31 but can be revised at any time they feel it is necessary.
“You know, we’re crystal balling what’s going to happen in 2026.” Akins said. “We have some good ideas of things that are going to happen, but we don’t know for sure. There could be delays, we could have another pandemic, a lot of things, so what you try to do is bake the budget with as much realistic information that you have and then we can change it as we go along. The only thing I don’t like doing is putting in arbitrary numbers that we don’t know for sure are going to actually happen or not. I like for us to have a pretty good solid number.”
Major changes in the budget included adjustment of the clerk’s salary and an added capital expense for the fire department. The clerk’s salary was reduced to $12,000 in the last city council meeting, while council approved the hiring of a deputy clerk to help fulfill those duties. Akins budgeted $20 per hour for the deputy clerk position, approximately $41,600 annually.
Insurance, salaries, and payroll taxes went up in the fire department. Workman’s compensation claims have gone up across most departments after having had a lot of claims last year. Akins said they have been working hard to provide extra training and proper equipment to be able to bring those costs down.
Fire and EMS asked for $39,000 to replace outdated rescue tools, and another $45,000 to purchase two new stair chairs. Additionally, they requested approximately $115,000 to purchase the chassis for a new ambulance. It was clarified that another $150,000 – $160,000 would be requested in the 2027 budget to finish rehab of the ambulance by 2028.
Transit is a self-supporting department that receives no taxes from the city, relying mostly on state and federal reimbursement. Transit expenditures are for preventative maintenance on buildings, and three new trolleys – one paid self-paid, the other two with 80/20 matching grants.
Police Chief Billy Floyd told council they have had a lot of turnover due to various undisclosed personal reasons. With very little revenue, the police department is not self-sustaining. The police department raised money from local people and businesses to acquire a new K-9 unit including training. Officers utilize an in-house gym, and Floyd is working to ensure the continuance of the department’s jiu-jitsu training, which reduces use of force.
No budget for Planning Commission reached council prior to this meeting.
The budget is not yet final. It will be workshopped on Jan. 12 and voted on at the council meeting of Jan. 26.