Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Smithville finance staff presents 2025 budget update; board signals support for 10% director and 8% frontline raises
Summary
Finance Director Walker presented revisions to 2025 revenues and expenditures, citing stronger September sales tax and lower-than-expected health premium increases; the board signaled a preference for a 10% director / 8% frontline compensation scenario as staff guidance for the budget.
Walker, the city’s finance director, presented the 2025 operating budget and five-year capital improvement program to the Board of Aldermen and said staff had an extra month of financials to refine revenue and expense estimates. He told the board that September sales tax came in stronger than earlier in the year and that updated health-insurance premium information showed projected increases below what had been budgeted.
"Sales tax had started to slow down. September came in pretty strong, so we're able to revise that revenue for '25," Walker said. Walker said that change increased projected 2025 revenue by roughly $50,000; staff also adjusted expenditures upward by approximately $31,000, yielding an estimated $19,000 increase to ending fund balance for 2025.
Walker reviewed compensation scenarios built on a baseline of 10% increases for director-level positions and 8% for frontline staff, noting how different scenarios shift the timeline for when the city's reserve policy target would be reached. He said the baseline 10%/8% scenario would still likely hit the reserve threshold in 2026 under current projections.
Board members voiced preferences during a round-robin discussion. Alderman Shifley said he favored a 10% director / 8% frontline structure; Alderman Wilson and other members weighed options including 8/8 and 10/10. After discussion, the governing body signaled majority support for 10% and 8% as direction to staff. "Sounds like 10 and 8," the mayor (unnamed in the transcript) said as the board coalesced around that guidance.
Walker also highlighted several other budget items: a proposed one-time $2,500 donation to the Northland Career Center (noted as board direction earlier), a modest increase in engineering projects, and a reminder that certain projects such as wayfinding signage would only proceed if grant money is received. Staff cautioned that water and wastewater funds require continued monitoring; master plans indicate multi-million-dollar infrastructure needs in coming years and may require additional attention to rates and capital planning.
Staff will use the board's guidance on compensation to finalize the budget for formal consideration and will return with ordinance and packet materials as required. There was no formal vote on the budget at the work session.
