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Finance director reports stronger-than-expected FY2025 revenues, positive fund balance outlook for Smithville
Summary
Finance Director Rick Welch told the Smithville Board of Aldermen that FY2025 revenues exceeded budget—driven by $525,000 in interest earnings, higher sales and use taxes—and that the general fund balance rose to roughly 67.9% of operating expenditures; no budget action was taken.
Finance Director Rick Welch told the Smithville Board of Aldermen on Dec. 16 that the city—s FY2025 general fund performed "very well," with revenues finishing just over 1.2% above budget.
Welch said the uptick was driven largely by $525,000 in interest earnings and stronger-than-expected sales and use tax receipts, with sales tax about $140,000 above budget and use tax about $206,000 higher. He attributed expenditure savings of roughly $113,000 to staff vacancies and deferred capital spending, noting one example in which $160,000 had been approved for campground repairs but only about $124,000 was spent.
The finance director reported that the general fund balance increased to roughly 67.9% of operating expenditures, well above the 51.5% projected during budgeting, and said forecasting indicates a positive fund balance through 2030 if current trends continue. "Overall, revenues came in just over 1.2% higher than budgeted," Welch said.
Welch also reviewed enterprise funds, saying combined water and wastewater operational revenue exceeded budget by about $600,000 (approximately $300,000 from water sales and $200,000 from wastewater). He told the board that a certificate of participation issuance of $8.5 million is not included in the reported FY2025 numbers, but that reimbursements related to that issuance are being tracked and are on target.
On sales-tax-supported funds, Welch said the transportation, capital improvement and parks/stormwater funds showed variances chiefly because of project delays and that most project activity is scheduled for 2026. The sanitation fund came in close to budget, with expenditures about $25,000 below budget due to timing and accounting for GFL services; the vehicle replacement fund was intentionally drawn down in 2025 to delay turnover, and staff plans to rebuild reserves with a target of more than $100,000 in 2026.
No formal budget votes or policy actions were taken during the work session. Alderman Dan Hartman moved to adjourn; Alderman Kelly Kobylski seconded. The board voted 6-0 to adjourn and Mayor Damien Boley declared the meeting adjourned at 6:22 p.m.
The board did not set or adopt the FY2026 budget during this session; staff said the FY2026 revenue assumptions include a modest senior tax freeze impact from Clay County estimated at about $10,000.
