Large year-end reserve means no new taxes in Rogers
Posted on Thursday, January 3, 2008
ROGERS - After topping its expected revenue for the year and decreasing spending from 2006, the city of Rogers is now sitting pretty with a 44 percent budget reserve.
Mayor Steve Womack said the budget reserve means two things: "The city's not going to be running out of money; we're not going to be raising anybody's taxes."
With 2007 's final numbers now crunched, city treasurer Jerry Hudlow said the city brought in $ 31. 421 million in revenue, topping not only its projections for last year, but also for 2008.
The city bested its projected revenue of $ 29. 289 million by more than $ 2 million. The projected revenue for this year is $ 30. 413 million.
Meanwhile, expenditures decreased. The city spent only $ 27. 666 million in 2007, down $ 26, 000 from one year earlier.
Budgeted expenditures for 2008 are set a bit higher: $ 29. 417 million.
The city also has about $ 13. 5 million set in reserve, Hudlow said, more than 44 percent of the general-fund budget.
Womack said the final revenue numbers proved that October's salestax figures were a fluke. Sales-tax revenue in October was lower than it was a year earlier, the first decrease in 74 months.
"We had a very strong revenue year, despite that little October blip," Womack said.
Womack warned that having $ 13 million in reserve does not mean the city can freely fund a lot of projects.
Last year, Hudlow said, the city spent $ 1. 933 million on unbudgeted projects, taking that money from the reserve. Some of those projects included new computer software and hardware for the Police Department and a new building for the cemetery.
Those projects do not appear in the 2008 budget, but the city made a commitment to fund them in 2007. Hudlow expects those funds will be taken from the current reserve. Womack said the reserve will also be leveraged for bond payments and some construction costs.
The reserve fund, Womack said, may drop to about 33 percent because of the spending. He wants a minimum reserve of 20 percent to 25 percent regardless, he said.
Hudlow said the mayor only uses the reserve in case of a brief opportunity or a fiscal downturn. Because of the recent revenue trends, Hudlow is confident the city won't need that money for the latter.
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