Searcy City Council Approves 2026 Budget with Employee Pay Increases and Focus on Public Safety
The Searcy City Council approved the City’s 2026 budget last week, marking a significant investment in the City’s workforce and continued commitment to providing high-quality services to the community.
A major highlight of the approved budget is salary increases for all City of Searcy employees, with the largest raises directed to first responders, including the Searcy Police Department and Searcy Fire Department. These adjustments reflect the City’s ongoing effort to recruit, retain, and support the professionals who serve the community every day.
The pay increases were developed following a comprehensive review of compensation data from cities of similar size and structure, with the goal of bringing Searcy’s salaries more in line with comparable communities across the region. City leadership emphasized that investing in employees is essential to maintaining strong, reliable city services.
“This budget represents responsible stewardship and demonstrates that taking exceptional care of our people means we are taking exceptional care of our community,” Mayor Mat Faulkner said. “We were able to provide competitive pay increases, invest in public safety, reduce overall spending, and strengthen our financial reserves — all at the same time.”
The City closed the 2025 fiscal year in a solid financial position. The General Fund projected revenues of $30.2 million and ended the year with actual receipts of $30.1 million. Actual General Fund expenditures totaled $28.7 million, resulting in excess revenues over expenses of approximately $1.4 million.
For 2026, the City projects General Fund revenues to remain relatively flat at $30.2 million. Despite this, the City reduced overall General Fund expenditures to $27.5 million—approximately $345,000 less than in 2025—while still providing employee raises.
The budget also includes several cost-saving and efficiency-focused initiatives:
Sanitation Department Fleet Strategy: The City adopted a truck leasing program expected to save more than $900,000 in maintenance costs over a ten-year period, while improving reliability and service efficiency.
Health Insurance Strategy: By implementing a new plan structure, the City anticipates reducing health insurance expenses by approximately $400,000 in 2026.
Parks & Recreation Growth: Following its strongest year to date in 2025, the Parks & Recreation Department is projected to exceed $1 million in revenue in 2026, up from $757,000 last year, driven by increased tournaments, concession sales, and new programs.
District Court Revenue: Due to changes in Arkansas Act 371, the City expects to retain approximately $100,000 in additional district court revenue in 2026 that was previously remitted to the state.
Grant Funding: Grant applications submitted for 2026 currently exceed $8 million. If awarded, these funds would bring total revenues to historic levels.
In addition, sales tax revenues remain strong, ensuring that bond payments for the #MySearcy projects will not affect the City’s operating budget.
In December, the City fully funded its Emergency Reserve Fund at $6.5 million, further strengthening Searcy’s long-term financial stability.
“This budget reflects careful planning, innovative thinking, and a deep respect for our taxpayers and employees,” City Clerk / Treasurer Jason Nier said.