The City of Smithville adopted on second and final reading a budget ordinance for the 2025-26 fiscal year at their last regular monthly meeting on June 2. Property tax rates will not be going up this year, but water and sewer rates will be raised by four percent in order to keep utility revenues ahead of expenses, per state requirement.

The Smithville property tax rate is set at 0.7523 cents per $100 of assessed value, and is expected to generate $1,230,000 in local revenue. Actual 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), with rates for customers outside the city limits at $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 the current rate of $7.69 per thousand).

According to state law, if a utility operates at a loss for more than two years, and doesn’t address it, 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. The city finished the 2023-24-year 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.

The new budget includes a three percent pay increase for hourly city and salaried employees with a few exceptions. Those with up to four years of service would get a step raise, due 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 (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 is $4,000 to increase the longevity pay of volunteer firefighters as follows: 5 to 10 years of service- $250; 10 to 15 years of service-$500, and over 15 years of service-$750. Total budgeted payment to volunteer firefighters-$70,000.

The budget did not include the proposed $1.2 million Pierce fire engine requested by the fire chief, nor the three additional full-time (career) firefighter positions.

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) in the plus column 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: 2 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).