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Council holds first reading of 2026 budget; FEMA culvert grant and solar farm funds may offset street shortfall
Summary
Council reviewed the first reading of the 2026 budget (projected income $376,622; expenses $351,643), discussed an $8,618 street department shortfall tied to annexed roads, and reported a pending FEMA culvert grant and a possible community grant payment from a local solar farm to help finance repairs.
The Cherry Valley City Council conducted the first reading of the 2026 budget at its November meeting and discussed targeted funding issues for streets and the city park.
City staff presented projected 2026 income of $376,622 and projected expenses of $351,643. Councilors noted the budget must balance and identified an $8,618 shortfall in the street department driven by costs associated with annexed roads. Members asked staff to propose adjustments and return with options next month.
Mayor Ned Stevens reported that the city had been approved for a FEMA grant of $56,000 to replace a culvert and repair a washout on County Road 235; that grant is a 75/25 match, meaning the city must provide roughly $14,000. Stevens said a nearby solar farm has offered about $16,000 in donated chat and gravel, and staff has submitted that donation to FEMA as the city’s 25% match; the city awaits FEMA’s response to documentation questions.
Council also reviewed the expected revenue change from a 1% sales tax allocation (50% general fund; 50% city park) scheduled to take effect Jan. 1, which the budget projects will add roughly $59,000 annually to the City Park fund. The mayor and staff discussed insurance and liability concerns for the new ball field complex (improvements approaching ~$400,000) and the need to ensure adequate coverage for property and spectator liability.
Mr. Wayne Mley informed council that he had submitted a $168,000 Arkansas Natural Resources grant application (Oct. 28) to address failing water line segments and manholes; council noted the application is under review.
The council took no final vote on the budget at first reading. Staff will bring refined numbers and proposed adjustments to resolve the street fund shortfall at the December meeting.
