FORT SMITH -- The 2021 fiscal year saw a roughly 8.1% increase in revenues and 3% decrease in expenses, compared to what the city budgeted for originally.
Finance Director Andrew Richards proposed the amended budget during the Board of Directors meeting Thursday night, which included a 35.8% contingency reserve.
Estimated revenues were roughly $47.9 million, and expenditures were $54 million, with an end fund balance of $19.34 million.
"During the budget preparation period we analyze revenues and expenditures in an attempt to provide accurate end of year estimates for fund balances and working capital," Richards said in a memo to City Administrator Carl Geffken. "End of year estimates identify the resources needed to finish out the year and available resources beyond contingency reserve balances that could be dedicated to other purposes."
Richards said the new figures will be used in further developing the fiscal year 2022 budget.
The board unanimously approved the fiscal year 2022 operating budget, with a couple of additions proposed at the budget hearing held Nov. 4.
The additions include an increase in transit for the downtown area involving bus stop shelters with enclosed artwork. Funding involves a $160,000 revenue capital grant from Transit Federal, $40,000 in donations and $200,000 in other capital outlay improvements.
It also includes $20,000 to the Board of Directors program for upgrades to the Blue Lion facility, an addition of a new Community Development Block Grant director funded through CDBG and HOME federal programs, several proposed salary increases and a 5% reserve for certain programs within the general fund.
During the budget hearing, Geffken said the budget is purposefully similar to the 2021 budget but updated to address new needs.
"We're pretty happy with the proposed budget we've got here, just from the aspect of being able to add some salary plan changes, some increases to employees and some other things, but still we're maintaining a healthy fund balance of all the operating funds and working capital. I think it's a good proposed budget for 2022," Richards said.
The board approved a significant change to the 2022 operating budget by appropriating money from the street maintenance fund balance to construct public improvements and purchase equipment.
Director of Streets and Traffic Control Matt Meeker said the street maintenance fund balance was approximately 100%.
"While we like to maintain a healthy fund balance for emergencies and unplanned expenses, 100% is higher than we'd like it to be, so we proposed several construction projects and equipment purchases that would be both beneficial to the citizens of Fort Smith and reduce the fund balance to a more reasonable amount," he said.
Equipment purchases and construction projects include repairing flood damage at Carol Ann Cross Park, automatic flood gates on North 66th Street at No Name Creek, replacing deteriorated sidewalks at various locations, purchasing additional snow/ice removal and pretreatment equipment, creating a transportation management center and purchasing a distributor truck.
Meeker said the total cost for these items is estimated at $2.6 million, which would leave the department a roughly $8.03 million or 91.24% contingency reserve.
"I don't think there are any other departments that are 100% on their excess fund balance, and so it's really amazing you were able to accrue that much money, but what are we going to do in the future to make sure that that doesn't happen again? Because I don't want to have that type of funds collecting somewhere, and then all of a sudden have a line of Christmas items. I know that this is not frivolous, what you're asking for," at-large director Robyn Dawson said.
Directors Lavon Morton and Kevin Settle noted that increased gas prices and the covid-19 pandemic both affected the department's funds.
"We're trying to spend more as we go, to try to prevent that from happening the best we can in the future," Meeker said. "I just may be a little too tight with the money is all I can say."