Jonesboro presents $85 million 2026 budget; plan includes step and cost-of-living increases, bonds and reserve use

CFO Steve Pertit told council members the proposed 2026 budget totals about $85,000,000 in expenditures, with roughly $72,000,000 allocated to operations and maintenance. He described the plan as "consistent with previous budgets" and urged council to review the 110-page packet available to members.

Pertit said the budget includes a 2% annual step increase and a separate 2% cost-of-living adjustment for employees. "We included in this budget a 2% annual step increase in salaries and then a 2% cost of living adjustment as well," he said. The administration did not include new permanent personnel requests in the proposal and said staffing additions would be revisited after first-quarter results.

On capital spending, the finance team highlighted a previously authorized franchise-fee-backed bond of roughly $17.5 million that will fund three priority projects: an E911 safety center, Caraway Road expansion and pedestrian-trail connections. Pertit said bond par value was about $17,595,000 with net issuance proceeds of about $17,417,000 and an annual debt service payment of $1,000,001.47 coming from franchise fees rather than general-tax dollars; the bond has a final maturity of Aug. 1, 2055.

The budget also proposes using $3,000,000 of reserves for street overlays, appropriating $250,000 for ADA-compliant sidewalk improvements, and setting aside $1,100,000 from operations for recurring capital, drainage and industrial-rail maintenance. Pertit said the capital-improvement carryover fund is projected to end the year at about $18,700,000, after near-$6,000,000 spending in 2025 and remaining appropriations just over $11,000,000.

Pertit described the city's move to a captive/self-funded insurance program as a major benefit: claim activity reportedly fell about $2,000,000 year over year (from roughly $10,000,000 to $8,000,000), and the city avoided a potentially larger premium increase. He said details of the captive program will be presented in full after the calendar year concludes.

On restricted funds, Pertit said the restricted revenue fund holds about $582,000 and recommended appropriating roughly $261,000 for an upgrade to the tornado-siren system, which would leave approximately $321,000 in that fund. He also noted forecasted total reserves of just under $30,000,000 at year end, about $17,000,000 of which are already assigned; the administration reported roughly $12,500,000 in the general fund that could be considered part of available reserves after required set-asides.

Administration and council members discussed prioritization and timing of carryover projects, refinancing options if interest rates change, and the limits of the city's 1% local sales tax as a revenue source. The budget presentation concluded with staff thanking budget team members and noting the proposal will be on the finance committee agenda for next Tuesday where formal action may be taken.