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Smithville Board of Aldermen request cuts to FY2026 budget to cover State audit cost, schedule first reading Oct. 7
Summary
City finance staff told the Smithville Board of Aldermen that a newly announced State audit could cost $125,000–$150,000; to cover the General Fund share, the Board asked staff to remove four budget items totaling $105,000 and directed staff to bring the recommended FY2026 budget to the Oct. 7 meeting for first reading.
The Smithville Board of Aldermen on Sept. 23 reviewed the recommended FY2026 budget after Finance Director Rick Welch reported the city had received official notice of a State audit with an estimated cost of $125,000 to $150,000.
Welch told the Board the current recommended budget adds $450,351 in new expenses and would leave an estimated ending fund balance of $2,876,697. He said staff proposed splitting the audit cost 70% to the General Fund and 30% to the Utilities Fund; using the $150,000 upper estimate, that split would allocate about $105,000 to the General Fund. Welch asked whether the Board wished to retain the highlighted items in the recommended budget or identify cuts to cover the General Fund share of the audit cost.
Following discussion, the Board asked staff to remove four items from the recommended budget to offset roughly $105,000 in General Fund exposure: Economic Development Funds (World Cup) $40,000; Golf Cart $15,000; Outside Agency Financial Assistance $25,000; and Mini Excavator $25,000. Aldermen noted the golf cart and mini excavator could be revisited later in FY2026 if needed. The Board did not take a formal roll-call vote on those specific cuts during the work session; staff presented the request as direction to revise the recommended budget.
Staff also reviewed a list of carryover capital and infrastructure projects that would be added into the FY2026 budget, including the 144th Street lift station, Maple Avenue and River crossing, Stonebridge lift station and west bypass (engineering), water treatment plant improvements, Smith's Fork force main, Riverwalk Park and trail engineering, and multiple stormwater and roadway projects. The packet included funding sources such as Capital Improvement Sales Tax, Park and Stormwater Sales Tax, Transportation Sales Tax and Water Impact Fees; staff said adding carryover projects into FY2026 is intended to reduce future budget amendments.
Welch said the recommended FY2026 budget, with staff changes based on the Board’s direction, will be brought forward for the Board’s first reading on Oct. 7. The work session adjourned after a 6-0 voice vote on a motion to adjourn moved by Alderman Dan Hartman and seconded by Alderman Kelly Kobylski; Mayor Boley declared the meeting adjourned at 6:49 p.m.
The Board’s next formal step on the FY2026 budget is the Oct. 7 meeting, when the recommended budget will be presented for its first reading and possible subsequent action.
