Little Rock approves pension increases and rejects data center pause
Little Rock city directors voted Tuesday to increase pension benefits and fund youth programs. A plan to halt new data centers failed following a tied vote. The decisions affect city retirees, youth groups and future commercial developments across the community.
Directors approved pension changes for eligible retired police officers, firefighters and surviving family members. The adjustments take effect Jan. 1, 2027.
The measure provides a $400 monthly benefit increase. It also adjusts the amortization period for the plans and excludes alternate payees under qualified domestic relations orders.
Little Rock Firefighters Local 34 President Matthew Stallings supported the pension measure.
“After giving their youth and their health to the community, the men and women who serve this city deserve to retire with dignity,” Stallings said in a statement. “Any time we can increase their benefits, it’s a good thing.”
Stallings added that first responders deserve everything the city can provide. Mayor Frank Scott Jr. said the city works to show appreciation through compensation and retirement.
“Not only do we take care of our existing ranks, but we also want to take care of you as you transition into retirement,” Scott said.
Directors also approved eight one-year contract extensions through the Positive Prevention Programming initiative. The city committed up to $800,000 for youth services in 2027.
Each group may receive up to $100,000 under the extensions. These contracts run from Jan. 1 through Dec. 31, 2027.
The funded groups are:
- LightDentity Foundation
- Bridge 2 Success
- Our House
- Dalton Whetstone Boys & Girls Club
- William E. Thrasher Boys & Girls Club
- James H. Penick Boys & Girls Club
- Billy Mitchell Boys & Girls Club
- Life Skills for Youth
The Little Rock Department of Community Programs oversees the funding, Scott said. The programs focus on violence prevention, intervention and support.
Scott said city crime numbers have dropped. He reported overall crime fell 27% and violent crime fell 21%.
Scott said the city has spent close to seven million dollars on this programming. The approved extensions continue existing services.
A proposed six-month moratorium on hyperscale data centers failed after a tie vote Tuesday. The measure would have paused approvals during a city impact review.
The proposed review aimed to study water use, wastewater, noise, emergency infrastructure, zoning and monitoring practices. Vice Mayor BJ Wyrick voted for the pause.
“We don’t know the ins and outs of how these things work,” Wyrick said.
Wyrick said a review should involve the Arkansas Department of Environmental Quality, the Environmental Protection Agency and the Public Service Commission. She cited concerns about heat, pollution and emergency response.
“I don’t think we cover pollution. I don’t think we cover the heat from the buildings. I don’t think we cover emergency response,” Wyrick said.
City Director Lance Hines voted against the pause. He noted the economic benefits from data centers.
Hines said construction could employ thousands of people over five to eight years. The sites would later provide several hundred permanent jobs, Hines said.
Hines said the sites produce hundreds of millions in tax value to support schools and pensions. “The thing that people ignore is that … they are going to generate hundreds of millions of dollars in tax value,” Hines said.
Scott said Act 851 of 2023 limits Arkansas cities and counties from banning data centers. He said regulating facilities is the best path forward.
The city previously adopted a regulatory framework for data centers, Scott said. He expects the city to pass amendments as issues arise.
Municipal boards generally adopt ordinances to direct public money and set local zoning rules. A tie vote on a council measure means the proposal does not move forward.
The failed moratorium means the proposed six-month pause will not take effect in Little Rock.
