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DECEMBER 2023 STUDY SESSION r City of Van Buren, Arkansas Minutes of the Study Session of the City Council Monday, December 11, 2023 Van Buren Municipal Complex CALL TO ORDER 5:29M The study session of the Van Buren City Council was called to order by Mayor Joseph P. Hurst at 5:2913M. Police Chief Jamie Hammond led the invocation. Mayor Hurst led the Pledge of Allegiance. ROLL CALL 5:30PM Present: Council Member Madison Simmons, Council Member Kenneth Bell, Council Member Mike Kneeland Council Member Tyler Wood, Council Member Matt Dodson, Council Member Tonia Fry, Mayor Joseph P. Hurst, City Attorney Jacob Howell, City Clerk-Treasurer Shawnna Reynolds Absent: None Miscellaneous and General Discussion 5:30PM Mayor Joseph Hurst began the study session by stating that Van Buren was named Volunteer City of the Year for 2023. He thanked all those who made the award possible and mentioned that he was proud of the accomplishment. The discussion then turned to the 2024 proposed budget. Again Mayor Hurst thanked the Department Heads for working with him on their department needs and even taking cuts if needed to ensure the budget was balanced. Mayor Hurst discussed the proposed revenue he hopes we receive for 2024 and his methodology for determining the projection. He stated that State Turnback for both General and Street Funds is based on population, and he believes we can expect a similar amount of revenue in 2024 so he would not be making drastic changes to that figure. He explained that he found a couple of areas with a little more wiggle room to project revenue and he believes that his calculations will change slightly upwards by the December 18,2023 Regular City Council Meeting. The topic of Sales Tax was discussed and the loss of approximately$800,000 in 2024 as a result of the county paperwork that was not filed with the State. It was hard to get around the fact that it is going to impact our city, but he was pleased that with everyone's cooperation we will be able to navigate the situation. Even with that he believes we will collect approximately$8.2 million in 2024. He reminded those present that County Sales Tax is divided with 12.5%going to the Police Department, 12.5%going to the Fire Department and the remaining 75% going to Capital Improvements. He explained that we will not be able to take on certain Capital Improvement projects such as drainage or street repairs which will free up funds but was confident that the street projects,we completed in 2023 were the major projects and was grateful that had been completed. Mayor Hurst was excited that it appears we may receive a grant from FEMA to roll into the Streetscape project. He mentioned that this was first submitted in 2019 and the cost of materials has increased since that point, and he expected that the grant would not fully cover the project. Mayor Hurst stated that he did expect that as a city we can recommend a 3% raise for our employees. It was also mentioned by the council that they wanted to increase the elected officials' salaries by 3% as well. Mayor Hurst expanded on the subject of Municipal Health Benefit Plan and the increase cost to the city of$223,000. He explained that the city has an opportunity to move from the traditional plan to the enhanced option plan and that the additional coverage would be a great benefit to our employees. Further in the discussion was the increase of approximately$72,000 in Worker's Compensation. Mayor Hurst explained that the increase was due to a couple of large claims and that we lost a 2% discount in addition to our MOD rate increasing from .82%to 1.12%.This will stay on our record for three (3) calendar years. Quite a bit of discussion was had regarding the additional cost of the blue recycling bins at each school. Mayor Hurst mentioned that in the past it was$350 flat rate which was budgeted at $4,200 annually but it has increased to $150 per trip charge and could increase our budget by about$17,000. He is in discussion with the school who have agreed to cover half the cost, but the council discussed possible changes to the current recycling situation. In this discussion it was also mentioned the additional cost to the city for the country club property at the city park but there has not yet been a determination as to what will be done to the property but that could increase the budget if the city continues to maintain it. Also mentioned was a possible increase for the Old Town Merchants Association which will be discussed further at a later time. The study session ended on a very positive note with everyone looking forward to great things in 2024. Mayor Hurst stated there would be minor changes to this proposed budget by the council meeting on December 18tn ADJOURNMENT 6:16PM Council Member Madison Simmons made a motion to adjourn,seconded by Council Member Mike Kneeland.The motion passed 6-0.The study session of the Van Buren City Council was adjourned at 6:16PM. Oerk Trey ��� Saco City of Van Buren 0- ATTESTED: �y� cam`' APPROVED: �raCounty,P��a Shawnna M. Reynolds Jo�ph P. Hurst City Clerk-Treasurer Mayor ti l t� r r ti f r,rlj���