Bartlett adopts FY27 budget with 2% pay increase; board debates paving strategy, BPAC losses and pension risks

The Bartlett Board of Mayor and Aldermen on Tuesday approved the city's fiscal 2026–27 budget, including a 2% across‑the‑board salary increase and funding adjustments for benefits, and adopted a tax rate staff recommended to account for pending assessment appeals.

The budget, enacted on third and final reading as Ordinance 26‑08, includes a 2% salary increase estimated to cost about $850,000 and additional retirement and benefit changes the administration said will raise total salaries and benefits by about 5.3% for FY27. Finance Director Dick Feebas presented the final reading and CEO Steve Sones summarized compensation proposals, saying the administration's package would amount to an approximately $850,000 base cost for 2% plus additional planned step increases and educational bonuses.

Why it mattered: The vote follows public comment that urged the board to examine long‑term fiscal risks, and an extended board debate examining how the city will pay for recurring capital needs like paving. The board passed the budget 5–1.

Public comment and pension concerns: During the public hearing on the budget, resident Christine Richards said the city's defined‑benefit pension plan's funding status had slipped and that the unfunded liability had grown "to 37,473,991." She warned that growing liabilities and newly expanded benefit formulas could create future pressure on the general fund and urged closer oversight. "At this point in time, your funding status has moved from 76% funded to 75% funded," Richards said, urging the board to focus on pension funding.

Administration response and next steps: Finance staff acknowledged the concern and board members said they wanted a follow‑up conversation on unfunded liabilities in a future work session. Mayor David Parsons and administration officials said they would present actuarial results and discuss options when the full reports were available.

Paving strategy and new materials: A large portion of the meeting's discussion focused on pavement management and recurring funding for roads. The administration described a multi‑year approach guided by a PMG pavement assessment and recommended using preservation products such as fog chip seals, scrub seals and a rejuvenator referred to as HA5 to extend pavement life at a lower cost than traditional full milling and repaving.

"We can pave three times as much road with that product as we can the traditional milling and paving," Director of Engineering John Horn said, describing the fog chip seal and related treatments as ways to stretch limited dollars. Public works and engineering staff said some annexed county roads lack proper subgrades and therefore require deeper repairs.

Board members debated whether to reallocate funds into street paving immediately or wait for the updated PMG assessment due this fall; Finance Director Dick Feebas noted the street aid fund had an FY27 proposed paving allocation of about $1.9 million and a fund balance around $1.1 million that could be appropriated if a plan were adopted.

BPAC and other capital items: Councilmembers raised concern about operating losses at the Bartlett Performing Arts Center (BPAC) and recommended a review of programming, marketing and potential capital investments; the FY26 amendment approved later in the meeting included $150,000 for theater seat replacement and a planned parking‑lot improvement among roughly $1.985 million in CIP transfers.

Tax rate adoption and appeal risk: The board also adopted Ordinance 26‑09 setting the tax rate for tax year 2026. Finance staff recommended a $1.66 rate to provide a cushion against ongoing assessment appeals; Feebas said a one‑cent difference would represent roughly $230,000 in annual revenue and compound in future years. The ordinance passed unanimously.

Votes at a glance: Ordinance 26‑08 (FY27 budget) passed 5–1. Ordinance 26‑09 (2026 tax rate) passed unanimously. The board also adopted Resolution 16‑26 (CIP transfers, ~$1.985M), Resolution 17‑26 (school budget amendment for an Alturia elementary school, $37M planning noted), Resolution 18‑26 (recognize state grant to fire dept.), Resolution 19‑26 (ambulance repairs, $141,400, sole source), Resolution 20‑26 (set aldermen salaries at $12,000, effective 1/1/27) and Resolution 21‑26 (mayor salary $127,000 with $800 vehicle stipend) as recorded in the meeting packet.

What's next: Staff said updated PMG pavement analysis will arrive by this fall and the board asked for a targeted plan before committing additional recurring paving funds. Finance staff committed to presenting the actuarial pension report when it is finalized so the board can consider long‑term options.

Sources: Board discussion and presentations by Finance Director Dick Feebas, CEO Steve Sones, Director of Engineering John Horn and Public Works Director Matt Grenaw; public comment by Christine Richards.