As city staff continues the budget process for Fiscal Year 2017-18, the Sedalia City Council got its first public look at major plans so far during Monday night’s meeting.
Finance Director Kelvin Shaw gave a budget preview, going over revenue sources and expected expenditures for FY17-18. After consulting sales tax projections from the Congressional Budget Office, Goldman Sachs, Kiplinger, the state of Missouri and Pettis County, the city has chosen to budget for a 1.5 percent sales tax increase year-over-year for the coming budget.
“After looking at these projections, the recent moderate climb should continue,” Shaw told council.
Shaw pointed out that 60 percent of the city’s revenue comes from local taxes, with sales and use taxes making up 43 percent of that amount.
In FY16-17, the city budgeted for a 1 percent year-over-year sales tax increase. So far, the increase has been larger at 2.4 percent over the previous year.
Shaw added that the city’s sales tax is 12.7 percent over FY09 levels, which he said is an average 2.5 percent year-over-year growth rate.
Shaw said personnel costs make up 72 percent of the city’s expenses and he listed several personnel options for the upcoming budget for council to consider:
• $286,000 for the Police Retirement Fund.
• Requested operational increases — two added Police Department communications officers ($81,666 total) and two added patrol officers ($98,492 total); added staff to perform proposed rental inspections ($58,477), which would be partially offset by the estimated inspection fees; added full-time ($27.024) and part-time ($8,320) Animal Shelter attendants.
• Fire Department time and title increase ($15,000) and boot and equipment reimbursements ($6,150).
• Health and life insurance increased costs of an estimated 5 percent.
• Wage increase options — updated pay plan study ($28,150); normal step increase for all employees ($243,928); one percent cost of living adjustment for all employees ($119,210).
At roughly $38 million, City Administrator Gary Edwards said FY17-18 would be the highest budget in the city’s history.
Council will have further discussion during the Feb. 27 work session when it will give city staff direction on several budget decisions. A public hearing regarding the budget will be hosted during the March 20 meeting, during which council will vote on the budget.
The regular meeting began with a public hearing regarding the establishment of the 1705 Broadway Community Improvement District. This CID is for Harbor Freight, to be located at 1705 W. Broadway Blvd., and will only impact this business.
Jennifer Baird, attorney with Lauber Municipal Law, presented information about the proposed CID during the hearing. She explained that the most common funding mechanism for a CID is sales tax, which the 1705 Broadway CID will be utilizing. Customers who shop at Harbor Freight will pay an additional 1 percent in sales tax, which is used to pay for the improvements made within the CID. Highlands Development, the developer for the project, will pay all upfront costs, then will be reimbursed for the improvements by a loan funded by the 1 percent sales tax.
Baird said the CID will exist for a minimum of 20 years or until all project costs have been paid. A total of roughly $1.3 million in improvements are expected in the CID, according to figures provided by Highlands Development. Chris Williams, of Highlands Development, was also in attendance and said Harbor Freight hopes to open its new location in mid- to late March.
After no citizens spoke in favor or against the CID, during the meeting council approved an ordinance approving the amended petition for the creation of the CID.
During the meeting council also:
• Approved an ordinance adding Section 64-73 to the Code of Ordinances relating to the Historic Preservation Commission’s review of demolition permits.
• Approved an ordinance establishing a No Parking restriction on the west side of South Missouri Avenue from West Broadway Boulevard north to West Seventh Street. Ward 1 Councilwoman Jo Lynn Turley and Ward 3 Councilman Bob Cross voted no. This ordinance was amended from the Citizens Traffic Advisory Commission’s recommendation of a restriction from West Broadway Boulevard north to the first alley. Public Works Director Brenda Ardrey said the approved ordinance will remove six parking spots.
Two men, who did not provide their names during the Good and Welfare portion of the meeting because they spoke out of turn as council was trying to close the meeting, were opposed to the new restriction as it would impact one of the men’s business, Wolfy’s Barbershop. Galliher and city staff explained during the pre-council and council meeting that the decision was made due to increased traffic in that area, which poses safety concerns when public safety vehicles, such as fire trucks, have to make their way down that street.
• Approved a bid of $22,792 from Gregory Container, of Kahoka, for four 25-yard glass recycling containers.
• Approved an ordinance amending the budget for Fiscal Year 2016-17 regarding the Downtown Building Inspections project.
• Approved a records destruction request from the Personnel Department.
• Approved the appointment of America Perez to the Police Personnel Board, completing Billy Foster’s term expiring June 2017.
All members were present.
