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Smithville board directs staff to draft budget with 10% for directors, 8% for frontline
Summary
After reviewing multiple compensation scenarios, the Board of Aldermen voted to direct staff to use a draft budget scenario applying 10% increases for directors and 8% for frontline staff; staff will further refine revenue projections and return a balanced budget.
The Smithville Board of Aldermen voted to direct staff to prepare the draft FY2025 budget using a compensation scenario that applies a 10% pay increase for directors and 8% for frontline employees.
Rick, the staff presenter, outlined five pay scenarios and the budgetary impacts of each, saying the new payroll base is roughly $4.5 million and warning that larger raises would accelerate the date the city would dip into reserve balances. Rick noted benefits costs (health premiums up about 15%, workers' compensation projected up 9%) and several added positions that affect the baseline budget.
During discussion board members debated whether to prioritize frontline raises or larger increases for directors (some data cited indicated directors were farther behind market). One board member asked staff to re-chart the scenario with an inverse split and then moved to adopt the 10% directors / 8% frontline split for the draft budget. Speaker 7 seconded the motion. The chair called for the vocal vote; the transcript records one alderman saying "Aye" and one alderman saying "No," and the chair declared "Motion carries." The board did not adopt final budget language in this session; the direction simply sets which compensation scenario staff should use in drafting the budget.
Staff said they will return in August with updated revenue figures (sales tax/development fees) and a third-quarter update to show how chosen compensation increases would affect reserve timing and the balanced budget path.
