JEFFERSON CITY, Mo. (KMIZ)

 Jefferson City officials introduced an $86.9 million spending plan Thursday that Mayor Ron Fitzwater described as a “bare bones budget to meet the needs of this city.”

The proposed fiscal year 2026 budget, presented to the City Council’s first Budget Committee meeting, comes in close to last year’s approved total of $86.5 million. The city’s general fund, which covers basic operations, makes up $42.8 million of the plan, with public safety again being the largest expense.

Police spending accounts for $13.9 million, roughly 31% of the general fund, while fire services are budgeted at $10.7 million, or 25%. Public works is the next-largest department at $7.8 million. Personnel services overall make up nearly half the city’s general fund budget, totaling $43.4 million.

Fitzwater said budget priorities include “taking care of their people” through salaries and benefits, supporting public safety, and investing in infrastructure, particularly road improvements. 

His budget includes a 2.5% pay increase for city employees, as well as a 10% increase for health insurance and 5% for dental insurance. The mayor noted that departments submitted $49 million in requests, but only $42 million could be funded, leaving the original proposal $7 million over budget before adjustments.

The budget also proposes $14.3 million for wastewater services and $11.5 million for parks and recreation.

Revenue challenges and adjustments

In a letter to the council, Fitzwater said the city anticipates a slight dip in sales tax revenue, projecting $14.3 million, about 1% lower than last year’s receipts and the fiscal year 2025 budget.

A new revenue source has been added to the general fund: Gross receipts utility tax payments from the city’s wastewater system. The so-called PILOTS-GRUT revenue stream will transfer 6% of gross receipts from wastewater to the general fund, allocated for street improvements. City officials emphasized it will not affect consumer rates.

Key modifications

The budget sets aside money for several upcoming elections, including a November 2025 lodging tax vote, the April 2026 general election and an August 2026 capital improvement measure. Lodging tax revenue is expected to offset the cost of the special election.

Other notable changes include:

• Funding for six new leased police vehicles.
  
• Increased legal and human resources spending for union negotiations and an updated compensation study.
  
• A buy-down of $1.05 million from the Capital Improvement Sales Tax to address HVAC issues at City Hall and the police facility.
  
• Support for the Chamber Childcare Initiative Program and additional yard waste pickups.
  

The final budget, incorporating any amendments adopted during Budget Committee meetings, will be presented at a regular City Council meeting held at the end of the annual budget season.

Throughout the process, the City Council has the authority to propose and adopt further amendments until it is passed.  

The new fiscal year begins Nov. 1 for Jefferson City.