A new salary plan, benefit increases, and increasing costs are expected to put the city of Jonesboro's budget under a watchful eye next year.
The Jonesboro City Council reviewed the 2017 budget during a special meeting last night. Next year's revenue is expected to increase by four percent. However, operations and maintenance in the city, as well as a new salary plan for city workers, is expected to take about 67% of next year's budget.
The council learned that $27 million dollars will be in the city's reserves in January, while $23 million will be in the reserves for 2018. 2019 and 2020 are also expected to see dips in the reserves, as only $12 million is expected to be in reserves by the start of 2020.
Jonesboro Mayor Harold Perrin says the city will address additional revenues for the city by seeing if revenue enhancement fees are high enough, watching expenses very closely and looking for other sources of revenue that is not in the budget. Perrin says the current revenue growth comes from a one cent sales tax the city has in place.
He declined to say whether a tax increase could be needed in the future to help shore up any drop in the reserves. The Jonesboro City Council will vote on the 2017 budget at next Tuesday night's regular city council meeting.
Here are some highlights from the meeting:
In 2016, the city's and Craighead County's sales taxes were up, with an average growth of 3.6%. Revenue from building permits was up 22%. Other revenue from the city rose slightly, except for franchise fees. Fuel costs were lower in 2016 as the city only spent about half of what was budgeted for fuel. There is a hope that fuel will stay low in 2017.
2017 will start with an overall increase in operation and maintenance of 5.64% and an 11% increase in salaries and benefits. The numbers that were discussed does not include any extraordinary expenses that could take place, from a weather event or any other unexpected event.
