The North Little Rock City Council approved the 2022 budget Monday night that includes a slight increase in revenue projections, signaling the city can comfortably ride through the covid-19 pandemic.
Notably, city employees and elected officials will receive another pay raise after the council approved separate resolutions confirming both.
The $76.9 million budget will increase spending by $2 million from the budget the City Council passed last year. The City Council also approved a 2.5% salary increase for full-time city employees. Part-time workers will get a 25-cent per-hour raise.
The mayor, council members, the city attorney and the city clerk and treasurer also will receive a 2.5 % salary increase.
In a separate resolution, the council unanimously approved an agreement with the city's fire union that will give North Little Rock firefighters a raise.
"Long story short, it's a lot easier this year than it was last year. Of course, [former mayor] Joe [Smith] did that one," Mayor Terry Hartwick said. "But I think our budget spoke for itself. I'm very happy with what we've done."
The budget projects the city will receive $53.7 million in sales tax revenue, roughly a $4.7 million increase from last year. The city's sales tax revenue is projected to jump from $35 million to $38.5 million.
It's the first budget for Hartwick since he returned to office in January.
Hartwick campaigned on a pledge that he could be the steady hand that will lead the city through the pandemic, but challenges for North Little Rock still remain. Cases of covid-19 are climbing again around Arkansas, homelessness and crime remain high, and the city is having trouble filling numerous open positions.
When it comes to the 14 job openings, city officials hope the pay raises will make North Little Rock a more competitive employer that can better retain its employees.
"We've been fighting openings in certain departments just like any other. You know, private companies are facing trying to get good, qualified staff to stick around," council member Steve Baxter said.
Hartwick said he was happy to support salary increases for elected officials, saying council members deserved it for continuing to work through the pandemic.
Baxter likened the 2.5% pay increase for members of the City Council who make around $11,000 annually to "a Happy Meal."
"If people want to fight about me being able to afford an extra Happy Meal a month, then they can fight about that, but that's really all it amounts to really for the council members," Baxter said.
City Council members made only slight changes to the budget with most of the disagreement being over a proposed $60,000 increase for funds to the Arkansas Museum of Fine Arts.
Arguing cities such as Sherwood and Maumelle aren't paying their fair share, Linda Robinson was the lone City Council member to vote against the budget resolution.
"You all have been generous. I'd say give them zero," Robinson said.
The budget remains pretty close to what the City Council passed last year with slight increases for most departments. North Little Rock police will see the largest increase with about a $1.2 million increase in its budget. The Fire Department also will see about a $1 million increase in its budget.
The City Council also approved an $878,502 increase in the parks fund, bringing it to $9.3 million. Some of the new spending will be for maintenance, special projects and the Arkansas Inland Maritime Museum.
Since taking over as mayor in January, Hartwick has tried to boost the city's outlook with big deals, spending $5 million to purchase the Arkansas Blue Cross Blue Shield building and $400,000 on a pump track that he hopes will be the first step toward building a $3.5 million park for cyclists.
Adding to the city's increased revenue, the city plans to sell off some properties including the city services building on 120 Main St. and police substations which will now be empty thanks to the opening of the Justice Center.
Hartwick said when crafting the 2022 budget the city looked back to pre-pandemic times.
A year ago, like much of the county, North Little Rock was reeling from the pandemic as cases of covid-19 surged in Arkansas, flooding hospitals with patients that put them on the brink of capacity.
City officials feared a dramatic drop in sales-tax revenue as bars and restaurants throughout the city remained mostly empty and under social-distancing restrictions from Gov. Asa Hutchinson.
But the pessimistic predictions on the city's budget did not come to pass as businesses in the city rebounded in the spring when covid-19 cases dropped.
"We didn't have to fight, haggle," Baxter said. "We didn't have to short any department any of their needs."