Neosho City previews draft budget that trims reserves while funding major capital projects

Neosho City staff presented a draft budget to the council that projects total funds will fall from about $24.3 million at the start of the fiscal year to roughly $21.7 million by the end of next September, while reserving money for a slate of capital projects including public-safety design work, water-system upgrades and facility repairs.

The presentation, led by Leslie (city staff), outlined fund-by-fund changes and explained that many declines reflect one-time capital purchases rather than permanent operating shortfalls. “We are expecting to end this year at 7.1 [million],” Leslie said, and the draft anticipates the general fund will be near $6.5 million by Sep. 30, 2025 — a drop she described as the result of planned capital spending and conservative revenue assumptions.

Why it matters: The draft funds a long-term water and wastewater capital program while also setting aside money to advance an architect-led design phase for a proposed public safety center. Using reserves for capital reduces near-term balances but aims to address infrastructure needs the city staff described as critical.

Key details

- General fund: Staff reported the general fund began the prior year near $8.4 million and the draft estimates an ending balance of about $6.5 million for FY25, a decrease of roughly $982,000 compared with last year.

- Water/wastewater: The city’s water and wastewater funds start near $6.4 million; staff said reserves will be used to fund items in a previously approved 20-year capital plan and project the balance to drop to about $5.3 million by FY25.

- Public safety center design: Council discussion increased the architectural allowance for public safety center design and engineering from $500,000 to approximately $1 million to cover anticipated contract fees and design contingencies. Council debated procurement approaches, including whether to use a Construction Manager at Risk (CMAR) model.

- Police and fire capital: The police budget includes two replacement patrol vehicles. The fire department is expected to receive a rescue truck (the city paid an initial order; staff expects final delivery and payment next summer) and requested extrication, rope and trench-rescue equipment.

- Facilities and other projects: The draft includes about $470,000 for general-administration capital to repair and update the City Hall facade and windows, a deferred City Hall HVAC replacement, replacement of an aging city vehicle, airport hangars with a city share (~$63,000), and drainage work (Stratford and Freeman) tied to a DED project.

- Events and tourism funding: The events board recommended and the draft includes allocations for fall festival ($15,000), fireworks and contracted services for organizations including the Neosho Chamber ($20,000) and Neosho Arts Council ($8,000); the events board reduced a disc-golf request from $5,000 to $3,000.

- Grants and reimbursements: The draft shows a pending CDBG grant for recycle-center equipment (skid steer and food-waste hopper); staff said they will order equipment once grant approval and then submit for reimbursement.

Revenue adjustments and regional funding

Council heard that regional changes at the Missouri Department of Natural Resources affected some program funding. Dean (staff) explained the region was overpaid last fiscal year, and that roughly $200,000 of misallocated funds will be deducted from this year’s allocations, producing sharp cuts across regional programs. “That extra 200,000 that was misallocated will be taken out of this year's budget for them,” Dean said.

Council response and next steps

Council members asked questions about reserve targets and timing for the capital projects. Leslie noted each fund’s budget pages include a calculated 90-day reserve figure and the number of days of coverage for that fund. Staff said many items can be cut if revenues deteriorate; they described the budget as cautious and built on current trends rather than growth assumptions.

Formal actions

At the end of the session a motion to adjourn was made, seconded and approved unanimously with council saying “Aye.”

What’s next: Staff will return with more detailed project-level requests and formal procurement documents; several capital items — including the public safety center design contract and drainage project agreements — will require later council approval.