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Joplin manager warns of tighter finances in FY27 as expenditures outpace sales-tax revenues
Summary
City manager and finance staff told the council at a May workshop that operating expenditures are growing faster than projected revenues, estimating about $16.1 million in unrestricted general fund balance at year-end and urging one-time use rules for reserves as staff develops the FY27 budget.
City Manager Nick Edwards and finance staff presented a midyear FY2026 budget update at an informal May workshop and told the Joplin City Council they will face “difficult financial conditions” heading into FY2027.
Edwards said the budget is the city’s financial plan and policy document that should set clear priorities and reflected that current forecasts show operating expenditures growing faster than revenue. Leslie, the finance staff member leading the projection, presented a high-level 5th-period estimate that shows roughly $16.1 million in unrestricted general-fund balance and just over $26 million in total fund balance by the end of 2026. She cautioned the chart is preliminary and will be refined line-by-line when departments submit detailed estimates.
Councilmember Price asked why the key-initiative spreadsheet showed a roughly $2.6 million increase in the fire line compared with the adopted budget. Leslie explained that rolled purchase orders carried forward at fiscal year-end and budget amendments enacted since adoption account for much of the variance and offered to re-send the roll list and amendment schedule to the city manager.
Both Edwards and Leslie emphasized that Joplin is heavily dependent on sales tax and that unrestricted fund balance should be reserved for one-time expenses, not ongoing operations. Edwards said a goal of about one year of operating expenditures is reasonable for Joplin given its sales-tax reliance; the Government Finance Officers Association’s recommended minimums for more diversified revenue communities are lower but not necessarily suitable for Joplin’s revenue mix.
Edwards told the council staff will tally department requests and present a balanced budget in August. He asked council members to be intentional during the retreat and the budgeting process about which initiatives they want to fund, noting that new initiatives increase the difficulty of delivering a balanced plan.
Next steps: staff will refine the projections, produce line-by-line estimates during the formal budget process, and return with a proposed FY27 balanced budget in August.
