Council Approves Key Budget Amendments, Tackles Tax Rates and Pay Adjustments in Special Session

EXCELSIOR SPRINGS, Mo. (Sept. 27, 2024) – The Excelsior Springs City Council held a special meeting Friday morning, September 27, to address a range of issues, including updates to property tax rates, approval of a budget amendment to tackle recruitment challenges, and the purchase of new vehicles for the Community Development Department. The council also approved adjustments to the city’s pay scale, accepted a right of way deed for the Dry Fork Greenway Project, and made several board appointments and reappointments.

Consideration of Levying General & Special Taxes for Tax Year 2024

At the special City Council meeting held at 7:30 a.m. on Friday, Sept. 27, 2024, city officials discussed the Levying of General and Special Taxes for the upcoming tax year. City Manager Molly McGovern explained the process of determining property tax rates, which begins in January each year. Property values, assessed by the county assessor, are calculated based on market values from Jan. 1 for real estate and an October issue of the National Automobile Dealers Association (NADA) for vehicles.

McGovern highlighted the impact of the Hancock Amendment, which mandates adjustments to tax rates to prevent excessive revenue increases tied to property value inflation. This year, Excelsior Springs saw a 0.11% increase in real estate values but an 8.5% decrease in personal property values compared to 2023.

For the 2024 tax year, the calculated tax rates include a slight increase across the board. The General Fund tax rate is set at $0.5728 per $100 of assessed value, a rise of $0.013 from the previous year. Additionally, Parks and Recreation will see a rate of $0.3226, an increase of $0.0072, while the Hospital tax rate is $0.1613, up by $0.0036. These rates must be certified by Oct. 1 to allow timely distribution of property tax bills.

McGovern also noted that Clay County senior homeowners would have the opportunity to apply for the Senior Real Estate Property Tax Relief Program starting in early 2025​.

Tax rates were approved unanimously by the council.

Purchase of Community Development Department Vehicles

Melinda Mehaffy, Director of Economic Development, presented a proposal regarding the Purchase of New Vehicles for the Community Development Department. Mehaffy explained that the department currently operates three vehicles, which are shared among all employees. The Code Compliance Officer and Building Inspector are frequently on the road. At the same time, a third vehicle, a former police car, is used by the Neighborhood Specialist and other staff when necessary.

The vehicles, however, are aging and in need of repairs. The department’s fleet includes a 2013 Ford F150, a 2013 Ford Escape, and a 2018 Ford Escape, the latter of which is in poor condition. The Escape has ongoing issues, including a persistent check engine light and a malfunctioning air conditioning system, and at one point was estimated to require a new engine costing over $9,000. Mehaffy noted that the department lacks both funding for major repairs and a dedicated budget for vehicle replacements, leading to escalating maintenance costs as the vehicles age.

To address this issue, Mehaffy proposed using unspent salary funds—totaling $81,731.52 as of Sept. 26—resulting from prolonged staff vacancies. The department had been without a Code Compliance Officer for five months, a second Building Inspector for seven months, and a Planner for five months, with existing staff filling in during those periods.

The department sought bids from local auto dealers and received one bid from Chuck Anderson Ford. The proposed purchase of three new vehicles would total $95,420.24. Mehaffy indicated that the vehicles would be delivered later in the year, after which the department plans to sell the existing vehicles and return those funds to the general fund.

The request was approved unanimously.

Board Re-Appointments and appointments

The council approved several board reappointments and appointments:

• Nick Houk was reappointed to the Board of Zoning Adjustment, with his term extended until Sept. 30, 2029.
• Mike Edwards was reappointed to the Enhanced Enterprise Zoning Commission, with a term extending until Sept. 30, 2029.
• Tray Harkins was reappointed to two positions: the Community Center Board until Sept. 30, 2029, and the Community Foundation until Sept. 30, 2027.
• Tricia Guarino was newly appointed to the Housing Authority Board, with a term ending on Sept. 30, 2028.
• Sonya Morgan was appointed to the Historic Preservation Commission, filling a term previously held by Betty Bissell. Her term will run until Sept. 30, 2025.

Right of Way Deed for Dry Fork Greenway Project

Public Works Director Chad Birdsong presented an ordinance related to the Dry Fork Greenway Project, specifically the acceptance of a right-of-way deed. Birdsong explained that the reconstruction of Kennedy Avenue, a key component of the Greenway project, requires additional right-of-way due to the redesign of the road and the addition of sidewalks in one area.

The city’s design engineers prepared an exhibit identifying the necessary area, and the right-of-way deed was executed in cooperation with the property owners. The deed grants the City of Excelsior Springs the additional land needed to move forward with the project.

The ordinance was approved unanimously.

Fiscal Year 2025 Budget Amendment

City Manager Molly McGovern presented a Fiscal Year 2025 Budget Amendment to address challenges with personnel recruitment and retention. McGovern explained that the city’s ability to attract and retain staff has been impacted by significant shifts in local market compensation. To address this, a market study was commissioned to recommend adjustments, which are reflected in the budget amendment.

The amendment includes several key updates:

• Changes to property taxes in the General Fund and Parks/Recreation accounts are based on updated property valuations. Real property values increased by 0.11%, while personal property values decreased by 8.4%. These changes result in a two-and-a-half cent increase in the property tax rate per $100 of assessed valuation.
• Funds transferred from the Public Safety Sales Tax (PSST) to the General Fund will cover a 13.7% increase in public safety salaries.
• A change in the water utility surcharge payment to the General Fund, increasing from 2.5% to 4%, was also included.
• Rate adjustments were made for Community Center memberships, while the water base rate was lowered by 1 cent to $16.96, and the sewer base rate was reduced by 6 cents to $24.63. Additionally, the sewer variable rate was lowered by 4 cents to $12.08 per 1,000 gallons.
• The city anticipates an increase in the Clay County Senior Services Grant.

Further discussions on membership changes at the Community Center and a public hearing for sewer rate adjustments will take place at future meetings. McGovern also noted that General Liability and Auto insurance premiums were overstated in the recently adopted budget and have been adjusted accordingly​.

The amendment was approved unanimously.

Utility Surcharge Fee

City Manager Molly McGovern presented Ordinance No. 24-09-09, proposing an increase in the city’s Utility Surcharge Fee. McGovern explained that cities collect franchise or surcharge fees from utility companies—such as water, gas, electric, phone, and cable providers—to compensate for managing rights-of-way. These utility corridors, set aside during property platting, allow for the installation and maintenance of service lines without cost to the providers while also ensuring efficient land use and development.

McGovern recommended increasing the current water utility surcharge fee from 2.5% of revenue to 4%, saying the adjustment would help the city cover the costs associated with maintaining its infrastructure while supporting ongoing utility management efforts.

Approved unanimously by the council.

Consideration of Approving a General Pay Scale

City Manager Molly McGovern presented Ordinance No. 24-09-10, which outlined the approval of a General Pay Scale update for city employees. McGovern explained that the city commissioned McGrath Human Resources Group to update the existing salary schedule for 2025. This update builds upon a 2021 Compensation Study and aims to ensure that pay ranges remain competitive with the external job market while maintaining internal alignment.

The study, which took into account external market data and challenges with recruitment and retention, recommended several adjustments:

1. An 8% adjustment to the salary schedule to align with market changes for the upcoming budget year.
2. Several positions were moved to new pay grades to better match external market conditions without disrupting internal comparability.

For employees whose salaries fall below the newly established minimum rates, the recommendation is to move them to the new minimum. Additionally, employees already within the pay range would see salary adjustments to reflect their time in position, ensuring a pay distinction between current staff and future hires. The plan also calls for all employees to receive at least a 3% salary adjustment.

The ordinance was approved unanimously.

See the full agenda from the September 27, 204 special session below.