Jonesboro Finance Administration Council Meeting - December 9, 2025

The Finance Administration Council Committee convened at 4:00 PM on December 9, 2025, to review a comprehensive agenda consisting of municipal lien resolutions, capital procurement contracts, a significant land donation, the 2026 budget adoption, and a property purchase agreement to settle litigation. The committee reviewed and voted to forward all items to the full City Council for final action, with extensive discussion focused on the fiscal prudence of the proposed fire truck purchases, the long-term strategy for the 2026 budget amidst rising operational costs, and the financial risks regarding the settlement of the Citizens Bank Tower litigation.

Consent Calendar

• Municipal Liens (Resolutions 25171–25193): The committee voted unanimously to forward 23 resolution packages to the full council to place municipal liens on various properties for unpaid fines or fees. Owners represented include Sky Park Holdings LLC, Kingdom Assets LLC, Hannah George Senior, Unicorn Investments LLC, Smith Brothers Properties LLC, AVHS Arkansas AR LLC, and multiple individual property owners. The amounts ranged from $60 to $365.
• Code Enforcement Acknowledgement: Council members commended Director Roper and code enforcement staff for their diligent work in clearing liens and maintaining city properties.

Public Comments & Testimony

• Laurel Park Offer Clarification: Matt Tre (Attorney for Laurel Park LLC) attempted to join via Zoom but was disconnected; he later rejoined to clarify that the offer was intended for the property owner to offset costs and legal fees before the end of the calendar year due to tax purposes.
• Council Member Concerns: Council members expressed skepticism regarding the appraisal value of $71 per square foot for the Main Street lots, noting it as astronomical compared to market rates. There was significant debate regarding the unknown costs of continuing litigation versus the definitive cost of the $750,000 purchase offer.
• Budget Review Request: Council members requested further clarification on the justification for salary increases without performance metrics and sought information on outsourcing analyses during the upcoming first-quarter review.

Discussion Items

• Resolution 25178 (Fire Apparatus Purchase): The committee discussed the $2.4 million contract with Southern States Fire LLC to replace a 2005 aerial ladder truck and a 2011 pumper truck. Staff explained that City Water and Light has committed to a two-year funding program contributing $600,000 annually. The budget includes a $625,000 appropriation from the depreciation fund, with the remaining balance expected to be funded by the partner city for the next two cycles.
• Resolution 25195 (Land Donation): Staff presented details on the acceptance of a ~2-acre in-kind donation from Blazor Land Holdings LLC, valued at $876,000. The property is designated for future public safety (fire station, police substation, or severe weather shelter). Staff outlined that while the city intends to pursue funding for these uses within seven years, there is no immediate guarantee of construction, and the property may be developed from a "blank slate" if existing structures are not reusable.
• Resolution 25196 (2026 Budget Adoption): The committee reviewed the projected $85 million balanced budget, which includes a 4% overall salary increase (2% step increase + 2% cost of living adjustment) for all full-time employees. Staff noted the transition to a captive insurance program (effective Jan 2025) resulted in decreased claim activity (from $10 million to $8 million) and administrative savings. The committee deferred final approval of certain personnel requests pending a first-quarter review. Significant discussion centered on roadway maintenance prioritization, with staff noting the city spends significantly less than the estimated $3.5 million annually required to maintain road conditions.
• Resolution 25198 (Laurel Park Property Settlement): The committee debated a settlement offer to purchase three lots on Washington Street for $750,000 to terminate ongoing litigation with Laurel Park LLC. While the Mayor and legal staff advocated for the offer to avoid potentially years of unpredictable legal fees and litigation costs, council members raised concerns about the high per-square-foot valuation and the lack of a definitive cost estimate for continuing the legal battle. The matter was noted as a long-standing issue with the property owner still litigating financial claims related to the demolished Citizens Bank Tower.
• Franchise Fee Revenue Bond: Staff provided an overview of the $17.5 million bond issuance, detailing the debt service payments starting in August 2026 and the allocation of funds toward the E911 center, Caraway Road expansion, and pedestrian trail connections.

Key Outcomes

• Resolution 25178: Vote passed to forward to full council for approval of the $2,419,767 fire apparatus contract with Southern States Fire LLC.
• Resolution 25195: Vote passed to forward to full council to accept the land donation from Blazor Land Holdings LLC and authorize the Mayor and City Clerk to execute related documents and warranty deeds.
• Resolution 25196: Vote passed to forward to full council to adopt the City of Jonesboro 2026 budget, authorizing $85 million in expenditures and a 4% salary increase for employees.
• Resolution 25197: Vote passed to forward to full council to amend the Salary Administration Plan to reflect updated pay ranges and job titles consistent with the 2026 budget.
• Resolution 25198: Vote passed to forward to full council to accept the $750,000 offer from Laurel Park LLC to purchase three parcels and terminate litigation, with a stipulation that the deal must close before December 29, 2025.
• Adjournment: The meeting concluded with the committee forwarding all new business items to the full City Council for final deliberation and approval.