Republic City Council reviews 2026 budget plan; $7.1m in surplus

Utility rates, fees rising while sales tax expected to stay flat; marijuana tax revenue expected to jump 40 percent
 
Republic City Council members got their first look at the fiscal year 2026 budget during the Nov. 4 meeting, preceded by an extended review of changes. The council also passed ordinances on the connecting road between the school and J.R. Martin Park, an annexation, and a street light agreement continuing the deal with what had been Empire District Electric Company.
Bob Ford, chief finance officer, presented the budget plans reflecting utility rate changes and pending capital improvements. The overall operating budget for running the city anticipated revenues of $40.6 million with spending of $34.2 million. Combining the current budget and the coming year budget leaves a consolidated net surplus of $7.1 million.
Personnel wages and benefits would run almost $21 million. Salaries for full-time and part-time employees would make up 65 percent of that cost. The rest would go toward benefits. The budget included a 3 percent cost-of-living increase and a 2 percent average merit increase.
Ford noted that of the $40.6 million in revenues, $10.8 million or 28 percent would come from sales tax. He projected no increase in revenues from the general sales tax. However, he anticipated the sales tax on marijuana purchases would rise 40 percent, from $120,000 to $168,000.
Utilities sales would generate another $15.3 million, up from $10 million due to water and sewer rate increases that were approved at mid-year to help pay for the new wastewater treatment plant and two more water towers in the next two years. Customer growth was only expected to grow by 1 percent.
Spending on capital investments was expected to run $50.7 million. Ford noted this budget extended the capital improvements plan from five years out to 10 years, creating “a more strategic document” for envisioning infrastructure investment to help see the need for rate increases, borrowing, and setting aside funds for sinking debt.
The city has a total outstanding debt of $104.8 million. The budget called for spending $5.4 million on retiring part of that debt in the coming year.
“Our mission,” Ford stated, “remains to be aggressively progressive  through processes, relationships and trust.” That included investing in infrastructure and facilities “to meet the growing needs of our community,” and “pursuing opportunities to strengthen the local economy, enhancing quality of life for every resident.”
Council members spent more than an hour reviewing details of the budget prior to the meeting, leaving no questions to ask during the public session.
Fee changes
Council members also reviewed proposed changes in fees charged by the city.
Karen Haynes, community development director, walked the council through several changes. She noted that fees for processing payments made by credit card would rise from 3 percent to 3.5 percent, to match what the vendor servicing the city charges. Third party reimbursements would rise to reflect added costs to the city for using consultants during the review process. Applications for economic incentive programs would bear an additional charge for time spent by staff and legal review.
A sinkhole remediation fee was being added along with a new roof permit fee. Anyone cutting into a city street for utility work would face a $1,000 deposit fee. In addition, businesses would no longer face a late fee for business license renewals.
Kris Parks, the parks and recreation director, said almost all services rendered by his department are fee-based. “We look at area trends,” he said. In addition to the impact of minimum wages, Parks said fees would rise for athletic leagues, community programs, facility rentals, and some special events.
Jake Jones, finance manager, reported the city is trying to go paperless and cashless. In the process of getting there, credit card payments would rise to 3.5 percent, and a fee of $5 would be charged for a paper statement. Customers will have to opt into the program, he added.
Both measures were presented as ordinances on first reading. Action is likely at the next regular meeting on Nov. 18.
Pending ordinances approved
Three ordinances proposed at the Oct. 7 meeting received final approval.
A deal with Empire District Electric for street light maintenance for the coming two years obligated the city to pay for services and facilities based on standard rates and schedules.
A plan to build a new street connecting the J.R. Martin Park with the Early Childhood Center, coinciding with park improvements, received a thumbs-up. The plan calls for eliminating Park Road and replacing it with a street to hold vehicles lining up to pick up children from the school, a queuing road extension, thus keeping traffic from backing up onto Hines Street. Under the proposed deal, the school district would split the cost of building the new street with the school district. The city would design the road and hire the contractor as part of the ongoing park improvements.
Annexation
A request to annex 9.66 acres of land at 4314 S. Farm Road 107 east of the high school passed a final hurdle. Developer James Nathan LLC sought the annexation to build 28 medium-density single-family homes on a minimum of 9,000 square foot lots. The developer plans to connect to streets from adjacent subdivisions, but end them with cul-de-sac stub-ins inside the subdivision. These include Audrey Street, extending from the east, and Lipscomb Drive, extending from the west. The configuration of the subdivision is similar to a “T” sitting on its side.
No questions were asked. The ordinances passed on a 6-0 vote.
ZZ Highway intersection action
After a year of discussion, council members approved a contract with the engineering firm of Olsson Inc. for the design of a new intersection at Hines Street and Hwy. ZZ. Karen Haynes reported the city sought qualifications from engineering firms for the job in 2024. Five firms responded, and after ratings, Olsson appeared the most qualified.
For a price not exceeding $400,000, Olsson would calculate utility coordination, conduct a traffic study as required by the Missouri Department of Transportation, evaluate intersection alternatives, and draft final design plans for the intersection, which would be reviewed and approved by the Missouri Department of Transportation.
Ward 3 council member Christopher Updike asked, “Does that mean a roundabout?”
“Not necessarily,” Haynes said. She noted MoDOT leans toward either a stoplight or a roundabout, and it was up to the engineering firm to determine the best option.
Staff reports
Clerk Laura Burbridge came in for commendation for completing her certification as a Missouri Professional City Clerk from the Missouri City Clerks and Finance Officers Association. She also completed study to earn the title of Master Municipal Clerk from the International Institute of Municipal Clerks.
Aurora City Clerk Kamy Kulow presented Burbridge certificates of appreciation for completing the training. A round of applause followed from the council and audience.
Chief of Staff Lisa Addington reported work on the J.R. Martin Park expansion was underway. The new parking lot was expected to be poured by the end of November.
Following a meeting with Crossland Construction over the new city hall, Addington said it looked like staff would be able to move in by Dec. 1. Crossland was waiting for materials from some of its vendors but still hoped to meet that timetable.
Addington said administrative reports would be prepared hereafter on a monthly basis and presented at the first council meeting of the month. She said there was not enough material to draft one for each session.
The recent Pumpkin Daze celebration, she added, had drawn 22,800 people attending and 300 vendors.
Republic hosted the Ozarks Transportation Organization breakfast meeting. Mayor Eric Franklin said, “It was a great time to see all of those around us as invested in the MM corridor,” the top legislative agenda item for the OTO in 2025, “as we are.”