Conway City Council adopts 2026 budget after debate over 9-1-1 costs, community center shortfall and debt paydown options

Conway City Council voted unanimously to adopt the 2026 budget, including an emergency clause, after extended discussion about how to cover rising public-safety and facility costs.

The ordinance (O25112) was moved and seconded and carried 8 to 0. The council approved a set of spending plans that include a 1% cost-of-living adjustment for employees, six added firefighter positions and five positions across other departments, while balancing the budget through a mix of revenue estimates, targeted cuts to department operational levels and use of fund balance for certain shortfalls.

Finance director Tyler Wingham told the council the city faces several unavoidable pressures: annual loan payments for a combined fire-truck and 9-1-1 radio upgrade total about $887,000; the 9-1-1 PSAP is budgeted with a roughly $760,000 general-fund impact in 2026 after expected reimbursements; and the new community center shows a $600,000 projected deficit included in the budget as a fund-balance appropriation. “This is our first year for the 9-1-1 center to be the PSAP in Faulkner County,” Wingham said, describing start-up costs and an agreement for Faulkner County to reimburse 48 percent of certain expenses.

Wingham presented revenue and expense figures for the 9-1-1 operation: projected 9-1-1 revenues of about $1,000,007 against department expenses of roughly $3,300,000, with an interlocal agreement that would allocate 48 percent of certain receipts to the county and 52 percent to Conway. He said the county receives about $100,000 in landline fees that it has agreed to remit to Conway for running the center; the net effect, he said, would still leave Conway covering a significant share of the overage.

Council members pressed staff on the confidence of community-center revenue projections and asked for a formal review after a full season of operation. “If we do end up missing our budget on that, where would we go?” one council member asked. Wingham said shortfalls would come from the general fund balance, which he estimated at roughly $14 million, and recommended revisiting rates and operations after the first full year.

The council also discussed whether newly approved dedicated sales taxes for public safety and streets/drainage could be used to service the five-year financing on the recent loan. Wingham said state law requires debt service on five-year financing be repaid from general revenues and not from sales taxes dedicated to a specific purpose. He said staff will circulate the applicable statute to the council and suggested pursuing legislative clarification if members want to alter that restriction.

Members debated options to reduce future interest payments, including an early principal payoff using reserves. Staff estimated lifetime interest avoided might be about $467,000 if the city accelerated payoff, but several members warned against depleting reserves held for emergencies. Several council members suggested a compromise: use a portion of reserves to reduce principal while maintaining a safety cushion.

The adopted 2026 budget also incorporates newly approved sales taxes (public-safety and streets/drainage) that will begin being collected in the coming months; staff emphasized those revenue figures are estimates because the election concluded late in the budget cycle. The budget document also includes allocations for street paving, airport fuel operations, a $2 million pay-as-you-go project for concessions and bathrooms at Donnell And Fields, and use of a $140,000 animal spay/neuter fund for shelter improvements.

The council adopted the ordinance with the emergency clause by roll-call and closed the meeting with an announcement about Assistant Chief Bill Keithley’s visitation and funeral services.

The council directed staff to: (1) send the statute that governs five-year financing repayment, (2) request Faulkner County reimbursement once first-year 9-1-1 actuals are tallied, and (3) schedule committee follow-up on 9-1-1 funding and insurance midyear if projections materially change.