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BY KATHY KENDRICK
Traveler Correspondent

City residents will get their chance to speak on the proposed city budget tomorrow night at 7 at City Hall. The city is proposing a 10 percent increase in water rates, which is lower than what was originally considered.

There is no tax increase in the budget, but the current proposed water rate hike will add about $8 to the typical residential water bill each month.

The proposed budget keeps the mil levy, or tax rate, the same as it is this year.

This year, a small increase in property value is anticipated due to the modest increase in the value of existing property, according to City Manager Curtis Freeland. Last year the valuation decreased slightly due to tax incentives given to Creekstone.

Total valuation for 2006 is about $43,879,736 as compared to $42,451,792 in 2005.

The budget for 2006 for all general fund accounts is $6,744,995, excluding reserves, as compared to $5,8633,673 in 2005. The total budget for all funds is $14,823,250, a 4.28 percent increase from the 2005 total of $15,326,461.

There are also no staffing cuts called for in the proposed budget, and city employees will continue to receive full-paid health insurance. Employees will also receive a two-percent cost of living increase starting Jan. 1, and a one-percent merit raise in the middle of the year.

The proposed water rate hike would apply only to the water rates, Freeland said. Other utilities that are billed for by the city, including sewer service and refuse collection, would not be raised. City leaders, however, are also proposing a $1 residential and a $2 commercial increase in the storm water utility for 2006. The increase will help the city to meet new regulations by the EPA for safe storm and water drainage.

"Hopefully, this will provide sufficient funds to meet the needs of this utility over the next decade," Freeland said.

The new water utility rate plan, presented to commissioners during their Friday work session, calls for the minimum water rate to raise from $8.43 to $13 with a ten-percent increase in the next four years.

"Note that the water rate increase in 2006 is down significantly from the 30 percent increase in water revenue that was in the original recommended budget, which we had anticipated would cost the typical customer around $11 per month," Freeland said.

The proposed budget also includes a cut in the amount of the water rates that will go to the general fund from $450,000 to 360,000 for costs of operating the service.

In other business, commissioners are expected to:

* Consider requests for the allowance of the sale of alcoholic beverages on Sunday.

* Consider adopting an ordinance adopting the city budget for 2006.

* Consider adopting an ordinance amending the rates for sale of municipal water service in Arkansas City.

* Consider adopting an ordinance amending the fees for commercial building permits and inspections, zoning and planning fees, and various license fees.

* Consider adopting an ordinance amending the fees for storm water utility service.

* Consider adopting an ordinance amending the fees for municipal court cases and other administrative fees.

* Consider adopting an ordinance eliminating the Employee Benefits and Special Improvement Funds and consolidating them into the General Fund.

* Consider adopting an ordinance setting the budgeted pay plan for 2006.

* Consider the approval of the 2006 contract with Rural Fire District #5 for provision of fire services to the district.

* Consider the approval of a contract with API for the provision of nutrition services to the Arkansas City Senior Center.

* Consider Mayor Joel Hockenbury's appointments to various city boards and commissions.