The Mountain Home City Council approved the 2026 budget Thursday night during a busy session that was their final meeting of 2025.
The budget totals just over $63 million. It includes a 2% cost of living adjustment (COLA) raise and a 1% lump sum bonus to be paid, likely in November, to full-time employees.
The city will transfer $2 million from the General Fund to the Parks Department to help cover all city parks and the start up of the Mountain Home Aquatic and Community Center.
The city is also going to begin providing funding for the Baxter Day Service Center. The funding will be $40,000 per year, at a rate of $10,000 per quarter. The council heard from the center’s Executive Director Paul Neal in October asking for the city’s financial help, saying the center has lost over $460,000 over the last five years, mainly due to declining numbers of clients and Medicaid reimbursement rates that have not increased in over ten years.
The council passed an ordinance that affects all new employees hired after Jan. 1, 2026. In an effort to lower costs for the city, new employees will only be offered a high deductible health plan. The plan does not affect current employees.
A resolution was passed by the Mountain Home City Council urging Arkansas Governor Sarah Huckabee Sanders, the Arkansas General Assembly and relevant state agencies to find a way to restore the Arkansas Federal Surplus Property Program.
The program allowed public agencies and some non-profits to items at steep discounts, sometimes up to 90% off. The decision was made by the state’s executive branch who said the program was no longer self sustaining. Arkansas is the first state in country to close its federal surplus property program.
The council approved an ordinance approving the application of Parker’s Pub, LLC for a private club to be located at 511 S. Baker Street.
The council approved a resolution supporting the affordable housing program application to be submitted to the Federal Home Loan Bank in Dallas for grants, up to $2 million, to fund construction of Mountain Home Estates Senior Living. The project, if approved, will be built on McClure Lane and will consist of 64 units.
The council also approved two rezoning requests. They included rezoning property at the end of Parkway Drive from Residential R-4 to Residential R3 and property at 2471 Highway 62 West from Residential R-1 to Commercial C-2.
Finally, the Mountain Home City Council heard an update from a representative from the North Central Arkansas Economic Alliance on how the group has spent the money the city has given them this year. This is the second year the city has given the group funds to work to bring economic expansion and development to the Twin Lakes Area, especially in the areas of tourism, manufacturing and small business.
This year, the city gave the alliance $40,000. The group highlighted some of the projects they were part of that included demolishing the old El Chico building to make room for the Aldi building, the awarding of five “Revive & Thrive” grants totaling $10,000 to businesses in Mountain Home to spruce up the exterior of their buildings, the building of their website which will launch in the first quarter of 2026 and the sponsoring of Draft Day at ASUMH which will happen again in April of 2026.
NOTE:
A correction has been made to the following sentence. The city will transfer $2 million from the General Fund to the Parks Department to help cover all city parks and the start up of the Mountain Home Aquatic and Community Center.
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