Belton staff present conservative FY 2026 budget proposal; $6 million placeholder for water improvements, 5% proposed employee pay increase

Ms. Cohen presented the city's proposed FY 2026 budget at a council workshop, saying the plan is largely "status quo" operationally while keeping a conservative approach to revenues and insurance costs. The proposal includes a 2.5% cost‑of‑living adjustment and a 2.5% merit/step increase (a combined 5% for employees) and schedules two council readings in March, with an April 1 effective date if adopted.

The proposal assumes a 12% health insurance increase that already took effect Jan. 1, and budgets 15% for the next insurance year as a conservative contingency. Other assumptions include 5% estimated growth in sales tax revenues, a 5% increase in water costs from Kansas City, Missouri, a 5% increase from Little Blue Sewer District and a 15% estimated increase in liability insurance. Ms. Cohen said the city is "super conservative" on insurance budgeting to avoid surprises.

The presentation listed several notable changes and capital items. Staff proposes adding a temporary IT position to consolidate police and city IT services during a planned transition; a deputy police chief position that adds about $21,000 in salary/benefits; an estimated $50,000 in rental‑inspection revenue; a new debt service payment tied to recent bonds for steep‑street and stormwater work; and golf course debt that will make its final payment in FY 2026.

On water infrastructure, staff included a $6,000,000 placeholder in FY 2026 to begin water improvements and debt financing discussions, with up to $1,000,000 noted for the first phase of an automated meter initiative (AMI). Staff said the $6 million would allow starting projects this fiscal year if council approves and that a full program could be larger; a separate workshop on water improvements and prioritization is scheduled for March 25.

Parks and social services items noted in the proposal include a proposed increase to the homelessness committee reimbursement from $10,000 to $15,000 (to be budgeted but not necessarily allocated immediately) and a $25,000 general fund transfer to Parks for a recurring public event. Parks capital requests listed included an all‑inclusive playground (Wallace Park), Cleveland Lake parking expansion ($350,000), ADA fishing dock, pool repairs and a variety of building and equipment upgrades.

Staff presented fund‑by‑fund summaries: general fund revenue estimated at $29 million with an ending cash balance equating to a 35.8% fund balance; parks at about 14.3%; street impact and several capital funds with higher percentages because they are intended for future projects; water fund balance would be reduced if the $6 million is used but staff characterized water reserves as still healthy. Major capital projects listed in the presentation include Larkspur ($2.1 million: city $380,000, federal $1,000,000, bonds $720,000), Marquis Parkway ($3.7 million, partly federal), an $8 million street and curb plan, North Cass Parkway ($5 million), Hargis Gardens ($1.7 million) and other ongoing projects.

Staff emphasized the city's conservative posture in light of economic uncertainty and said the budget is intended to be intentional and measured rather than aggressive. The budget process timeline: first reading with a public hearing on March 11, a second public hearing and (proposed) final reading on March 25, and an intended April 1 effective date.

Ending: Staff offered to meet individually with councilmembers for deeper dives into lines and projects; councilmembers asked for follow up detail on homelessness reimbursements, the AMI workshop, and capital project timing. No ordinance or budget vote occurred at the workshop.