Board adopts 2026 budget after debate over fleet financing and franchise‑fee accounting
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Summary
After questions about fleet financing and whether a 10% water franchise fee is codified, the Little Rock City Board approved the 2026 budget Dec. 16 by recorded vote; directors requested detailed fleet cost and up‑fit estimates by Q1 2026.
The Little Rock City Board of Directors adopted the city’s 2026 budget Dec. 16 amid extended debate over vehicle‑replacement financing and franchise‑fee accounting.
Director Adcock urged more time to review the budget, saying, “I do believe I do not believe that we have had sufficient time to go over this budget as a group,” and asked the board to postpone so department heads could answer questions. After discussion, the board voted to adopt the budget by a recorded 6–2 vote.
A central point of discussion was a proposed shift toward a ‘‘single‑use’’ fleet for police patrol vehicles and other departments. Finance staff and the city manager described two financing options: pay‑upfront purchases or a master lease/short‑term financing arrangement. Staff gave a working estimate for the multi‑year effort — “somewhere between $2.1 and $2.5 million” — and said the first payment timing would depend on when the program starts. Directors pressed for a more precise cost and for a full estimate of vehicle up‑fit timelines and costs by the end of the first quarter of 2026 before final implementation.
Vice Mayor Weyrick also raised a separate budget concern about franchise fees the budget assumes for water and wastewater collections. He said the budget included a 10% franchise fee for Central Arkansas Water and the Little Rock Water Reclamation Authority but that board staff could not locate a city ordinance codifying a 10% fee. City Attorney Tom explained that state statute (Ark. Code) allows municipalities to set franchise fees but that in this instance staff had documentation of an agreement suggesting a 10% figure rather than an explicit board ordinance; he said the legal record is not a simple straight line and that staff would review the documentation.
Mayor Scott and staff thanked department directors and finance staff for balancing the budget and pledged to provide the specific fleet cost estimates and up‑fit timeline requested by directors. Any debt issuance or master‑lease authorization will return to the board for specific approval.
