City manager proposes $449.8 million FY25–26 budget; recommends shifting police and fire costs to sales tax funds

Zach Walker, the city manager, presented the proposed fiscal year 2025–26 budget to the Independence City Council, outlining a $449,784,680 proposal that staff said stabilizes services while addressing a projected general fund shortfall.

"In accordance with section 8.2 of the city charter," Walker said, he submitted a balanced budget and asked the council to consider structural changes he argued would protect general fund reserves. Chief among the changes was a plan to shift police and fire department budgets out of the general fund and into dedicated sales tax funds (Proposition PD and the fire public safety sales tax), with the general fund providing transfers to maintain operations.

Walker told the council that without the proposed reallocation staff would need to identify $6.3 million in savings from roughly $23 million in non-public-safety spending — roughly a 27% reduction — to balance the general fund. He said the reallocation reduces the remaining deficit to about $208,000 and paired that with targeted reductions and modest program additions to reach balance.

Major budget points and numbers: the proposed budget totals $449,784,680 (an increase of about 9% from the prior year), with general fund revenues of $84,882,323 and general fund expenditures of $85,162,323. Personnel expenses across funds rise about 6% overall; Walker recommended a 3.25% cost-of-living adjustment for nonrepresented employees and noted collectively bargained increases for seven bargaining units are included. The presentation also listed capital and equipment appropriations across multiple funds, including significant street and utility projects and $33 million in utility capital improvements.

New and shifted spending: Walker recommended $350,000 to maintain current public transit service levels, $50,000 for additional code enforcement abatement funding, $60,000 to continue the Independence Together program after American Rescue Plan support ends, and $80,000 (from marijuana sales tax revenue) for a homeless outreach coordinator housed in a proposed new Department of Community and Emergency Services. He also proposed $400,000 from the marijuana sales tax for the dangerous buildings program and $25,000 for severe-weather-alert maintenance.

Timing and next steps: Walker said the public budget hearing and first reading will occur June 2 and the second reading and vote on operating and capital budgets is scheduled for June 16. No final budget adoption occurred at this meeting.

Council discussion and concerns: Council members pressed staff for clarifications about where restricted funds are held, the role of the city’s $450 million-plus total budget (which combines enterprise and restricted funds), and the implications of shifting public safety costs to special revenue funds. Walker and finance staff said the reallocation does not reduce the city’s investment in public safety and that voter-approved restrictions on sales taxes were considered in the proposal. Council members also asked about external pressures — rising material and labor costs, tariff effects, a Little Blue Valley Sewer District rate increase (cited at approximately $300,000), and the impending end of ARPA revenues for some programs.

Walker described the proposal as a step toward long-term fiscal stability but cautioned that any enhancements beyond the submitted package would require offsets. The council did not take formal action; staff will return with items for formal readings on June 2 and June 16.