Independence faces $776,000 general‑fund shortfall; council weighs asset sales, library‑museum consolidation

City of Independence officials said they face a projected $776,000 shortfall in the general fund for fiscal year 2025–26, and used a March work session to review options that would protect core services while narrowing the gap.

City Manager West opened the discussion by saying the council needed to weigh “what is the least worst answer,” and stressed staff were bringing options for council discussion and for public review. Finance Director Rob Moody told the council the $776,000 figure represents the difference between the city’s projected beginning fund balance for 2025–26 and a policy target reserve of $1,800,000, roughly four months of operating costs. Moody said staff also projected the city’s ending general fund balance had declined by about $560,000 during fiscal 2024–25.

Why it matters: the general fund pays for services such as police, parks, libraries and administrative functions. City staff and council said continuing cost pressures — rising personnel, insurance and utilities, plus statutory limits on property‑tax growth — mean revenue is unlikely to keep pace with operating costs without action.

What staff presented and what council discussed - Fund definitions and limits: Moody explained the difference between fund balance (an accounting measure) and contingency (a budgeted amount available only with council action). Staff reminded the council that several fund categories — notably enterprise funds for water and sewer — are legally restricted and are not available to subsidize general‑fund operations under current city ordinances and incorporated budget guidance.

- Library and museum consolidation: Patrick (library director) and Amy Haney (museum director) jointly presented a short‑term consolidation plan intended to preserve the museum collection and reduce operating costs. Patrick said, “This is not a wish list,” and described a plan that would move museum staff and some storage into library space at the Civic Center, cross‑train staff for front‑desk coverage and combine some materials and services line items to cut duplicative expenses. Amy Haney told the council that donated museum objects were transferred into the museum’s ownership and that “it is up to us whether they are on display or not,” and emphasized staff intended to maintain the collection and rotate exhibits where possible.

Staff estimated the museum mortgage currently costs the city about $85,000 a year and said the city’s remaining principal on that loan is roughly in the low‑hundreds of thousands; staff also said an arms‑length sale might bring a one‑time net receipt if the property sold for the estimated $700,000–$800,000 range. Staff cautioned that proceeds from an asset sale would be a one‑time source and should not be used for ongoing personnel costs.

- Asset sales and leases: staff reviewed a longlist of city properties and parks the council could consider for sale or lease, including the sports park, several smaller parks and the existing museum building. Councilors discussed constraints such as deed reverter clauses on some properties, the parks’ funding sources (for example, system development charges and grants that financed some recent park improvements) and the community value of particular parks.

Councilors expressed interest in exploring targeted sales or leases that would preserve public benefits (for example, retaining walking paths or securing covenants that require a buyer to deliver some public use) and in seeking buyers that would return property to the tax rolls. Staff noted the sports‑park site lies in a floodplain and might limit types of buyers; the hotel/event‑center operator and private sports developers were among potential interested parties mentioned.

- Revenue options: staff and council discussed revenue tools including grants, an additional levy, targeted fees and increases to transient lodging (hotel) taxes. Several councilors said they were reluctant to pursue new fees because of community feedback from the prior levy campaign; others said residents might support targeted measures if the uses and accounting were transparent. Staff said fees can be implemented at any time but recommended community engagement before adopting new recurring charges.

Council direction taken at the work session (discussion, not a formal vote) - Staff was instructed to begin outreach and preliminary investigation into several options: (1) initiate discussions with the Women’s Club/old library property as a possible relocation/consolidation site; (2) evaluate and begin a market process for selling the museum building; (3) reopen outreach about a selected group of parks and sites (including the sports park) to identify potential buyers or long‑term lessees while protecting public access where directed; and (4) return detailed, quantified budget scenarios showing how the ideas presented would affect the $776,000 gap and the city’s target fund balance.

The council did not take any formal votes or adopt budget changes at the session. Multiple members emphasized the need for broad public engagement before pursuing levies or new fees and urged staff to present alternatives that distinguished one‑time proceeds from ongoing revenue.

Public engagement next steps Staff said they will circulate a short, high‑level survey to gather resident priorities and will host a public budget meeting and Q&A for residents (staff noted a public session scheduled for March 11 at 5:30 p.m.). Staff will provide follow‑up budget scenarios to the council as soon as the detailed numbers are prepared.

What remains uncertain Staff and council acknowledged key open items: the exact impact of any sale or consolidation on long‑term operations, legal limits tied to deed or grant restrictions on some properties, insurance and liability questions for volunteers if museum operations are altered, and the competitive environment for any levy placed on a future ballot. Staff emphasized that one‑time sales proceeds can buy time or pay down debt, but will not substitute for a sustainable revenue solution.

The work session ended with councilors directing staff to return with quantified options and an outreach schedule to guide community engagement before the budget committee deliberations.