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Council adopts $2.265 million budget amendment; finance chief says cash on hand covers increases
Summary
The City Council approved a midyear budget amendment increasing general fund expenses by $2,265,000 and recognized roughly $304,000 in additional revenue; city finance staff said cash is on hand and the amendment does not violate the reserve policy, but council asked follow-up questions about past contract payments and revenue trends.
The North Little Rock City Council voted to adopt a midyear amendment to the 2025 city budget that increases general fund spending by approximately $2,265,000 and recognizes roughly $304,000 in additional revenue.
A staff member working on the city's financials explained the amendment addresses midyear adjustments for higher-than-expected insurance and vehicle maintenance costs, overtime in the police department, credit-card processing fees, and an IT maintenance line that includes software costs associated with police tasers. The staff member said: "When we rolled those POs forward, you all approved that contract... we just had to make it official on paper." The staff member also described transfers to parks tied to higher-than-expected parks revenue and a reclassification of capital-improvement funds tied to the 2023 sales-tax capital improvement program.
Council members pressed staff on whether the city had cash available to cover the added expense, referencing earlier meeting discussion that certain contract payments had been delayed. The finance staff said the city has the cash in the bank, will not miss payroll and that the amendment does not violate the city's reserve policy.
Specific items cited in the amendment discussion included: increased overtime tied to staffing shortages and FMLA/military leaves in the police department; insurance and vehicle maintenance for the fire and fleet operations; $300,000 in IT maintenance related to taser software; and reallocated parks capital funds for projects approved by the parks commission.
Council member Hamilton sought confirmation that the city had the funds, and the finance staff replied that they were comfortable and would not bring forward an amendment that would breach reserve requirements. The council approved the amendment on a recorded vote.
Staff indicated they will continue to monitor revenues, especially sales-tax receipts, and report back if additional adjustments are needed.
