Public hearing set on Joplin's $150 million budget proposal

Aug. 13—A public hearing will be held Monday on the Joplin city government's proposed $150 million budget for 2022-23, with no specific proposal yet included for police and fire or general employee pay increases.

City Manager Nick Edwards said at a council work session last week that the hearing provides an opportunity for residents to ask questions about the spending plan and discuss provisions of it with city officials. The hearing will be held near the top of the 6 p.m. agenda.

"I wouldn't say the budget is baked. There was a comment about the budget being inflexible, but that's not true," Edwards said at a council work session last week. "We probably need to take the long road through the budget this year just to clear up any misunderstandings."

The coming fiscal year budget is proposed at nearly $149.9 million in spending with $140 million in revenue projected. That compares to the current budget that started the fiscal year on Nov. 1 with $140.4 million in spending and $127 million in revenue.

While the city now collects use tax on online purchases, approved by voters in November, some other revenue sources such as user fees and utility franchise fees are decreasing because of lower use or fewer telephone and utility providers, city officials said last week.

The use tax is expected to provide $3 million.

"I can't think of a more uncertain time financially than what we're in now for local government since the recession of 2007-2008," Edwards said at last Monday's meeting. "I think this is even more challenging for us to figure out and know what to plan on. We're having the highest inflation since the 1980s. Your guess is as good as mine as to what that entails for us as an organization and a community. There's talk of a recession. We certainly continue to face employment challenges. All those are making this next budget year increasingly difficult."

Shares of the use tax revenue are directed to each of the city's sales tax funds proportionate to the amount of the sales taxes. It is projected that $3 million will be collected overall by the tax on internet purchases. City officials plan to use that money toward strategic plan goals that include revitalizing housing and neighborhoods, working to reduce issues created by homelessness, and trying to obtain enhanced broadband service for access to the internet.

Leslie Haase, the city finance director, said that the city has options on how to spend $33 million of the $150 million in the budget. That is the amount that goes into the general fund, which pays for city employee and some police and fire wages and benefits. The general fund receives proceeds of a 1-cent sales tax designated to the general fund, user fees, franchise fees and other revenue.

The remainder of city revenue is committed to specific purposes such as street maintenance and bridge construction, public safety, funding police and fire pensions, maintenance and building projects within city parks, stormwater control projects, and others.

"I know the city's budget is difficult to understand. It is not one big bucket of money you can use in any way you want. There are rules and regulations for all these funds. The general fund is the only fund that can be used for general purposes," Haase said. The city has 28 separate fund accounts in the budget, all for designated purposes except part of the money in the general fund.

Police, fire expenses

There is more than $51 million from the various funds designated for police and fire personnel and expenses.

Slightly more than half of the $33 million general fund, $16.3 million, is allocated to police and fire. In addition, Proposition B revenue is projected to generate $9.2 million for the police and fire pension fund. The half-cent sales tax is in effect until it funds the pension to 120% of benefits owed or for 12 years, whichever comes first.

Additionally, the half-cent public safety sales tax is expected to bring in more than $9.2 million. Voters approved it in 2006 to add more police officers and firefighters to the departments, fund their salaries and equipment, build the Public Safety Training Center and install and operate street lights in various areas of the city.

There will still be more work to do on the budget over the next several weeks.

The city's tax levy will be set after a public hearing on Monday, Aug. 22.

The council will review the budget at sessions on Sept. 20-22 to allow time for any revisions before the final adoption of the spending plan Oct. 17.