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Arkansas City commission votes to exceed revenue-neutral rate, citing insurance uncertainty
Summary
The Arkansas City Commission voted 4-1 to approve a resolution to exceed the revenue-neutral rate for the 2026 budget, citing uncertainty about upcoming insurance costs and a $75,000 cushion in the proposed budget.
The Arkansas City Commission voted 4-1 on a resolution to exceed the state-designated revenue neutral rate for the 2026 budget, a move city staff said provides a cushion against uncertain insurance costs.
Jennifer, a city staff member, told the commission the revenue-neutral rate (set under 2021’s Senate Bill 13) is expressed in mills and “generates the same property tax revenue dollars as levied in the '24 tax year using the 2025 . . . assessed valuation.” She said assessed valuation rose roughly 9 percent this year; that increase would lower the existing mill levy from 62.59 to 57.478 to keep revenue unchanged. The proposed budget before the commission sought a mill levy near 58.274, which staff estimated would raise about $73,000 in additional property tax revenue.
The public hearing drew residents who urged caution about tax increases. Blake Holston, a resident, addressed the commission during the hearing and said residents are struggling with higher household costs. “Be careful, gentlemen and ladies, how you govern the city because the taxpayer can't afford much already,” Holston said.
After the public hearing, the commission held a roll-call vote on a resolution to exceed the revenue-neutral rate. The vote was: Mayor Beeson, yes; Vice Mayor Stover, yes; Commissioner Spillman, yes; Commissioner Tweedy, no; Commissioner Warren, yes. The resolution carried 4-1.
City staff explained the budget includes roughly $75,000 in contingency specifically to cover potential increases in property and health insurance tied to recent hail damage and other claims; staff said if insurance renewals come in at lower cost, the commission could adopt a lower levy than the one authorized tonight.
The commission opened the public hearing on the revenue-neutral rate before taking the resolution vote; the record shows the hearing and vote were conducted as required by state statute and that the resolution must be adopted by roll call. The commission proceeded to the next agenda item after the motion carried.
Votes at a glance: Resolution to exceed the revenue-neutral rate — Passed, 4-1 (Tweedy opposed).
