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Smithville board adds $150,000 state audit estimate to 2026 budget
Summary
Board members discussed a newly received state audit notice and directed staff to include a $125,000–$150,000 audit estimate in the FY26 recommended budget, while considering a 70/30 cost-share with utilities to reduce general fund impact.
The Smithville board discussed how an unexpected state audit will affect the fiscal 2026 budget and asked staff to include a high-end audit estimate in the recommended numbers. Chair opened the conversation noting the packet and the overall impact: "with that 450,000, our ending balance fund balance for the general fund only would be just under 2,900,000." Staff later said the audit figure is estimated and could be cost-shared with utilities.
Staff clarified the $150,000 figure was the high-end number plugged into the draft: "That reflects $150,000 all in the general fund. That cost of the auditors is a $150,000 total," a staff member said, adding the city sometimes splits external audit costs with utilities (70/30). Board members asked about timing; staff said the city has been notified but an audit schedule is not yet set. The board directed staff to develop the recommended budget assuming the audit exposure and to present the document for first reading Oct. 7 and second reading Oct. 21.
