The City of Smithville passed on first reading the budget for the 2025-26 fiscal year last Monday evening during the Board of Aldermen’s regular monthly meeting. A second and final reading will be at the June 2 regular monthly meeting.
In this year’s budget, property tax rates for landowners will not be going up, but water and sewer rates will increase by four percent. The move was made in order to keep utility revenues ahead of expenses, as required by the state.
The property tax rate is set at .7523 cents per $100 of assessed value and it is expected to generate $1,230,000 in local revenue. City property tax collections for the year ending 2023-24 were $1,217,281.
The new city water rates will be $8.59 per thousand gallons of usage (up from the current rate of $8.26 per thousand). Rates for customers outside the city limits will be $12.88 per thousand (up from the current rate of $12.38 per thousand. City sewer customers will pay $8.00 per thousand, up from $7.69 per thousand.
Under state law, if a utility operates at a loss for more than two years, the state has the authority to force rate increases to make it solvent. The city is currently not running at a loss in the water and sewer fund. According to the budget the city finished the 2023-24-year June 30 on the plus side by $530,625 but is projected to be only $2,914 to the good by the end of the 2025-26 year on June 30.
This year’s budget includes a three percent pay raise for hourly city and salaried employees with a few exceptions. Those with up to four years of service will get a step raise due them on their employment anniversary date along with the three percent increase. The total regular base pay for all city employees combined in 2025-26 will be $3,081,525, up by $169,567 from $2,911,958 in 2024-25.
Salaries of the following city department heads and employees will be as follows (regular pay not including benefits) in 2025-26:
· City Administrator: $90,000, up from $85,840 in 2024-25
· Public Works Director: $74,000 up from $70,008
· Certified Municipal Finance Officer (CMFO): $74,000, up from $66,950
· Golf Manager: $42,000 up from $38,192
· Lead Operator in Water & Sewer Maintenance (same employee with new title): $26.32 per hour with CDL, up from $23.64 per hour with CDL.
· Parks employee: (same employee going from part time to full time): $19.07 per hour, up from $17.52 per hour.
Also included in the new budget is $4,000 to increase the longevity pay of volunteer firefighters as follows: 5-10 years of service - $250; 10-15 years of service - $500, and over 15 years of service - $750. Total budgeted payment to volunteer firefighters - $70,000.
The board decided to hold off on the purchase of a $1.2 million Pierce fire engine, requested by Fire Chief Charlie Parker, as well as three additional full-time firefighter positions requested.
Projected general fund expenditures for 2025-26 are to exceed revenues by $250,970. A year ago, the budget showed that actual city spending outpaced revenues by $795,688 for the year ended June 30, 2024.
In the water and sewer fund, the city is projected to finish next year (2025-26) up by only $2,914. A year ago, actual water and sewer revenues exceeded expenditures by $530,625 as of June 30, 2024.
The 2025-26 budget includes the following in new spending:
Capital Outlay:
· Public Works: mower trailer - $5,000; steam cleaner - $5,000; backhoe thumb kit - $5,300 (funded 50% from the general fund or $2,650 and 50% from the water and sewer budget $2,650)
· Fire Protection: Two tri band filters for radios - $7,000; 10 batteries for radios - $3,800; training site equipment - $15,000; loose fire equipment - $25,000; new hydrants -$50,000
· Street Department: Paving - $100,000
· Police Department: 2025 Tahoe - $52,143, 2025 Tahoe equipment - $8,554; 2025 Durango - $45,060, 2025 Durango equipment - $10,925, and tasers - $58,592.
· Financial Administration: G-5 software upgrade - $27,600 (funded 50% from the general fund or $13,800 and 50% from the water and sewer fund $13,800); backhoe thumb kit -$5,300 (funded 50% from the general fund or $2,650 and 50% from the water and sewer budget $2,650)
Water and Sewer Fund Fixed Asset Additions:
· Fixed Asset additions: wastewater treatment plant air piping project - $130,000; G-5 software upgrade - $27,600 (funded 50% from the general fund or $13,800 and 50% from the water and sewer fund $13,800).
