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City manager outlines 2026–27 budget process; council flags wastewater, airport and sidewalk projects
Summary
City staff presented a high-level overview of the FY2026–27 budget, reporting revenues exceeding expenditures by roughly $219,000 on a $16.8M budget and listing upcoming capital needs including wastewater plant work, a water tower, MLK sidewalk, and airport fund separation; council pressed for clarity on tax‑note spending and repair vs. replacement choices for wastewater plants.
City manager staff presented a high-level overview of Smithville’s 2026–27 budget process on June 17, setting workshop dates (June 17, July 30, Aug. 20, Sept. 9) and a target council approval date of Sept. 14.
The presenter said FY25–26 revenues on a $16.8 million budget were exceeding expenditures by about $219,000 year to date. “At this time, we have no plans to increase utility fees,” the presenter stated. Staff noted payroll and benefits account for approximately 36% of the total budget and outlined key revenue sources, including sales taxes and hotel-occupancy receipts.
Staff reviewed the city’s tax-note history and constraints: the council previously approved a $3,000,000 tax note in 2023 for capital items and must comply with spending rules associated with tax-note proceeds. The presenter provided an overview of debt levels (roughly $11.1 million) and reported the city’s utility fund balance at about $5.7 million. When a council member sought clarification about whether interest earned on the 2023 tax note is separately held or treated as debt service, finance staff replied that interest earnings remain within the tax-note account and can be used for projects listed under that tax note’s scope.
Council used the budget presentation to press staff on several capital issues. On wastewater infrastructure, council members and operations staff debated whether to spend on short-term repairs at the Gasly and Willow plants when replacement or force-main work is planned; operations staff estimated roughly $120,000 in near-term repairs to ‘limp by’ if the city delays larger upgrades. The airport manager’s accounts will be separated from the general fund in upcoming budget materials to satisfy grant-assurance requirements; staff will present Department 190 separately in a future workshop.
Staff listed other projects under consideration for the coming year, including drainages, MLK sidewalk widening, water-tower refurbishments, and ongoing work on engineering for the railroad crossing related to sidewalks. No budget adoption or tax-rate decisions were taken at the meeting; council directed staff to return with more detailed department-level requests and further information on capital timing and funding options.
