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Neosho staff presents FY2025 budget update; council hears insurance and fund-balance changes
Summary
City staff provided a fiscal 2025 budget update that adjusts insurance assumptions to 9.5%, adds modest program and equipment items, and projects a general-fund year-end balance of about $6.9 million; council scheduled the budget public hearing for Aug. 20 and second reading for Sept. 3.
City staff provided an overview of revisions to the proposed FY2025 budget, explaining line-item adjustments and next steps in the review process.
Blessing, speaking for finance staff, summarized the changes: a $3,000 increase to the general/admin fund for missed training; an adjustment in insurance assumptions from 3% to 9.5% that increased the city’s employee-share insurance expense by $146,073; a small life-insurance rate uptick; negotiated reductions to certain vendor costs (the clerk’s e-coach price was reportedly negotiated down by $7,000); and grant applications for an energy-efficiency window/filtration project and for a bunker-extractor washing machine for the fire department. Blessing also said an additional month of sales-tax receipts improved fund balances.
On the bottom line, staff said the general fund’s estimated year-end balance for FY2025 is about $6,900,000 and that the net change in total fund balance moved from a projected decrease of about $2.5 million to about $2.49 million — a roughly $40,000 swing from the earlier draft.
Council members asked for clarification about the net budget change and were given the figures described above. Staff reminded council that the budget public hearing will be on Aug. 20 and the second reading will be Sept. 3; council later provided consensus to cancel the Sept. 17 meeting so staff may attend the Missouri Municipal League conference.
What staff said “We updated the general, admin fund for some training that was missed. We increased that by 3,000,” Blessing said. On insurance assumptions, staff said the city’s previous 3% assumption was increased to 9.5% based on renewal negotiations and claims experience, which “increased the city's total expenditures” and a $146,073 impact for the city-paid portion of employee insurance.
Why it matters The budget adjustments change near-term expenditure estimates and frame the city’s public-hearing schedule. Insurance and personnel costs are material to operating budgets and will influence any amendments council considers before final adoption.
Next steps The budget public hearing is scheduled for Aug. 20 with the second reading on Sept. 3. Council gave consensus to cancel the Sept. 17 meeting so staff can attend the MML conference.
