Smithville reviews midyear FY2025 budget; staff recommends 20% minimum fund balance for new public‑safety sales tax

Smithville officials reviewed a six‑month FY2025 budget update at the Board of Aldermen work session on June 3, hearing staff summaries of revenues, expenditures and departmental FY2026 budget requests and discussing how the recently approved Public Safety Sales Tax might be allocated.

Finance Director Rick Welch reviewed midyear figures for the General Fund, water/wastewater and other funds, saying revenues have generally performed well through the second quarter — buoyed by stronger interest income and use tax collections — while expenditures are tracking near projections. Staff presented historical trends and baseline figures alongside department requests rather than repeating prior‑year narrative.

Staff described a planned allocation of the Public Safety Sales Tax revenues, which staff estimated at roughly $700,000 for FY2026 and said would begin to be collected on Oct. 1, 2025 and be received over the fiscal year. Proposed uses listed in staff materials included compensation increases for officers (staff listed $91,000 as costs tied to negotiated increases beginning Jan. 1, 2026), additional staffing and equipment (body cameras, AEDs), training and a full‑time animal control position. Chief Lockridge also recommended creating a three‑member Citizens Review Committee (with suggested backgrounds in law enforcement or finance) to convene quarterly or semiannually to review revenues and expenditures for transparency and accountability.

On fund balance policy, staff said the Board had previously discussed a 10% target at the retreat but recommended increasing the minimum Public Safety Sales Tax fund balance to 20% because the tax supports personnel costs. The Board indicated agreement with the 20% minimum; staff will return with committee‑formation details and additional financial analysis.

Board members also reviewed a range of departmental requests that staff flagged as either minor or more significant: Streets requested a $105,000 mini excavator (shared with Parks), a $25,000 GPS/snowplow tracking system and a $25,000 PCI pavement evaluation software with an ongoing annual fee; Parks requested equipment and facility updates; Finance requested a financial transparency platform (presented as a $25,000 budget request with a vendor quote of $7,500 one‑time and roughly $18,000 annually to operate); and the City continues to evaluate its vehicle lease strategy (the City currently leases 38 vehicles through Enterprise). Staff noted a $1,488,000 MoDOT reimbursement in the capital budget (Streetscape Phase III), with an outstanding reimbursement request near $597,000 expected by July 2025.

The Board also debated the City’s membership in the Clay County Economic Development Council; Mayor Boley said Smithville had not received projects from the EDC in five years and the Board agreed not to renew the $2,500 membership next year.

Next steps: staff will return with ordinance language, fee analyses and more detailed budget materials as work sessions continue; the FY2026 budget process schedule lists a first reading of the budget on Oct. 7 and a second reading/approval later in October. The work session adjourned at 7:07 p.m.