Conway council approves first reading of FY27 budget with millage and utility rate increases

Conway City Council on May 18 approved first reading of the proposed fiscal year 2027 budget, a $111 million spending plan that includes a 3.3% cost‑of‑living salary increase for staff, funding for 30 new full‑time positions and a recommended property tax millage change from 98.1 to 101.3 mills.

The finance presentation said the budget is roughly $100,000 below the current budget overall, reflecting the completion of several large projects. Solid‑waste collection fees would rise by $1, from $32 to $33. The city also plans to mirror a significant wholesale water provider increase: water service rates would rise about 10%, while sewer rates would increase about 3.3%.

Council members asked for clarification about how capital recovery fees and tiered residential rates would affect different customers. City staff said the capital recovery fee is a restricted fund for future capital needs and that the proposed water and sewer increases are separate: the wholesale provider's large increase drives the 10% residential water adjustment while sewer follows the 3.3% COLA alignment. Staff said a tiered rate study is included in the budget and would be completed within six to nine months to evaluate longer‑term rate structure changes.

Members of the public were invited to speak during the required hearing; council then closed the public hearing, moved to a motion on first reading and recorded the motion as carrying unanimously. Because this action was a first reading, the budget will return for additional council consideration and final adoption in a future meeting when staff will present updated analyses and any recommended adjustments.

What happens next: Council advance of first reading allows staff to continue outreach and work on the tiered‑rate study and other implementation steps. A final vote on the FY27 budget remains to be scheduled when council completes additional review and public notice requirements.