The Linn Board of Aldermen on April 30 approved a deficit budget for the 2024-25 fiscal year.

The new budget shows $173,032 in spending over what the city will receive in revenues for the fiscal year. The city is estimating that it will receive revenues totaling $4,513,083 and estimates that expenses will total $4,686,114.

“These are very conservative estimates on revenue,” City Treasurer Janelle Jaegers said. She noted that the new budget includes money that the city will receive in grants.

The city estimates that they will have increases in tax revenue due to the recent annexation.

The new budget predicts the following increases to revenues for the fiscal year: general sales tax ($250,000, an increase of $35,000), ¾ cent sales tax ($175,000, an increase of $25,000), motor vehicle sales tax ($21,000, an increase of $1,000), local use tax ($20,000, an increase of $8,000), local use tax for street ($80,000, an increase of $32,000),  general property tax ($150,000, an increase of $30,000), and motor fuel tax ($50,000, an increase of $10,000).

The city also anticipates increase in electric franchise ($90,000, an increase of $12,000).

The city estimates that both water and sewer revenues will increase due to rate increases. The sewer revenues are expected to increase from $450,804 to $481,276 and water revenues are expected to increase from $328,126 to $345,974.

The new budget anticipates increases in expenditures due to pay raises for all city employees and the Board Aldermen. Two new police officers will also be added into the budget.

Salary increases including FICA, group insurance and retirement for city employees will increase expenditures as follows: administration ($85,162, an increase of $54,773), license fee office ($105,857, an increase of $12,216), Board of Aldermen ($26,340, an increase of $6,459), street ($56,227, an increase of $539),  police $41,896, an increase of $110,721), water ($110,577, an increase of $26,234), pool ($39,917, an increase of $1,550), park ($47,183, an increase of $5,348), and sewer ($92,212, an increase of $7,839).

“The Board of Aldermen has agreed to limit the board members to $320 and the mayor to $640 (per month), these adjustments have been made,” Jaegers said.

The city is also expecting significant increases in costs.

For administration, the budget is anticipating increased expenditures for professional and audit services ($18,300, an increase of $8,700), trash service ($127,500, an increase of $9,962),equipment maintenance and repair ($1,000, an increase of $500), insurance ($10,000, an increase of $3,000), phone ($2,500, an increase of $625), printing ($350, an increase of $100), collection fees ($8,000, an increase of $1,500), office supplies ($1,500, an increase of $300), public relations ($1,000, an increase of $800), dues and fees ($3,000, an increase of $500), electric ($5,000, an increase of $2,000), street lights ($28,875, an increase of $5,775), and propane ($1,500, an increase of $500).

The city estimates that it will need to increase the line item for building maintenance and repair from $800 to $100,000 to cover the cost of a new roof for city hall ($30,000), and a surveillance system ($50,000).

The new budget estimates that it will increase the expenditure line item for transfers out of the administration fund from $32,202 last year to $170,579 in the new budget. Items to be covered by this transfer include playground ($33,679), walking trail ($2,000), park improvement ($3,000), police vehicle ($31,900), and Missouri Department of Transportation ($100,000).

For the Linn License Fee Office, the new budget is estimating increases for expenditures for buildings ($5,000, an increase of $1,000), office machine and equipment ($1,250, an increase of $250), equipment ($1,000, an increase of $690), phone ($3,500, an increase of $300), postage ($3,500, an increase of $2,500), and office supplies ($1,500, an increase of $400).

For streets, the city is also anticipating an increase in expenditure beyond salaries. Those increases include insurance ($7,500, an increase of  $2,500), and street improvements ($500,000, an increase of $250,000).

The city is estimating increased cost for the police department including insurance ($60,000, an increase of $18,000), office supplies ($2,000, an increase of $562), public relations ($500, an increase of $300), and miscellaneous expenses ($750, an increase of $500).

The new budget anticipates additional increases for the water department including professional and audit services ($13,125, an increase of $6,825), equipment maintenance and repair ($5,000, an increase of $2,500), computers and software ($2,000, an increase of $500), equipment purchase ($20,000, an increase of 16,330 for water meters), insurances ($10,000, an increase of $3,000), postage ($2,300, an increase of $600), shed and office supplies ($3,000, an increase of $500), parts and materials ($8,000, an increase of $5,000), dues and fees ($3,000, an increase of $1,500), electric ($30,000, an increase fo $7,000), and primacy fees ($4,000, an increase of $1,800).

Pool fund expenses are also estimated to be higher including equipment ($3,162, an increase of $2,162), phone ($1,500, an increase of $200), insurance ($2,000, an increase of $700), and electric ($2,000, an increase of $500).

Park fund expenses are estimated to increase as well. Those expenditures with increased costs include grounds maintenance and repair ($5,000, an increase of $3,000), and insurances ($5,000, an increase of $1,000).

The sewer fund anticipates the following increases to its expenditures professional and audit services ($13,125, an increase of $6,825), election expenses ($600, an increase of $50), equipment maintenance and repair ($5,000, an increase of $2,000), office machine maintenance and repair ($2,400, an increase of $1,600), wastewater testing ($6,000, an increase of $1,500), equipment purchase ($5,000, an increase of $3,330), sewer line maintenance and repair ($63,000, an increase of $55,000), insurance ($9,000, an increase of $2,000), phone ($2,500, an increase of $700), advertising ($400, an increase of $300), postage ($2,300, an increase of $700), dues and fees ($8,000, an increase of $7,200), electric ($60,000, an increase of $10,000),and  primacy fees ($1,200, an increase of $400).

Aldermen also approved the 2022-23 fiscal year audit that was presented at the March meeting. ‘There is nothing of significance in this audit, in my opinion,” Mayor Dwight Massey said.

Jaegers noted that the city has been instructed to develop a policy for leases but that was the only recommendation that she believed required a change for the city.

The audit stated that the City of Linn “on a government-wide basis the assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $7,007,358. The city’s unrestricted net position of $2,755,965.”

The audit also showed that the city had an ending fund balance of $925,307 and that the unassigned fund balance for the general fund was $871,950.

The audit broke down the ending fund balances for total assets as follows: governmental activities ($4,034,745), business-type activities ($4,615,218) for a total of $8,649,963. The total ending balance for liabilities was governmental activities ($41,855), and business type activities ($2,085,590) for a total liability of $2,127,445.

The audit shows total revenues for the fiscal year as $2,535,303 and the total expenditures for the same period as $1,451,248. The audit also shows that capital assets have increased from the 2021-22 fiscal year from $4,532,916 to $5,171,392. At the same time long-term debt for the city decreased ffrom $1,476,300 to $1,297,100.

The audit was performed by Sikich LLP out of Washington, Missouri.

Bartlett and NB West engineer Hope Drennan said the asphalt driveway being installed for the Jaegers Wastewater Regionalization Project was completed the week of the meeting.

“I drove by, and it looks pretty darn good,” Drennan said. “That was the final contingency for approving the final pay request.”

Drennan suggested that the aldermen wait to see if the property owner has any concerns and that the final pay request could be approved at the next meeting.

Massey noted that several landowners had complained about the fill settling in areas and asked if that has been addressed.

“It has not been done,” Drennan said. “That is supposed to happen this week.”

Drennan noted that they had walked the properties and have pictures about the areas of concern and will make sure that things are completed but she recommended that the final pay request be approved next month since concerns about the fill settling could be addressed under the restoration clause.

Drennan also noted that the Lee Mar Hills Regionalization Project has the survey completed and is in the preliminary design phase.

Massey asked if Drennan thought it would be completed to the point where they could approach landowners about easements for the project.

Drennan promised to get the maps to the city so that those conversations could be started. Drennan said that the Lee Mar Hills Project is slated for construction in the spring of 2025.

City Attorney Kent Brown has submitted his resignation as of April 30. Massey introduced the aldermen to Judith “Anne” Willis as a possible replacement for Brown.

“Anne has represented us in the past and done an admiral job for the city,” Massey said. “She lives locally in Osage City. I would love for her to fill that role.”

Aldermen authorized Massey to reach out to Willis to secure temporary legal representation for the city and to request she take over the position permanently.

City Clerk Carrie Grellner and utilities worker Aleks Rowinski noted that there has been a new foundation poured for a building within city limits without any permits being issued.

Massey explained that even though there is an ordinance in place requiring those planning new construction to request a permit before they begin construction, there is little the city can do to enforce them.

“Our ordinances have no teeth in them,” Massey said. “It is something we need to think about.”

Rowinski reported that he and his crew are making progress on Lee Street at the same time as they are continuing to keep up with day-to-day operations.

“We are getting more and more potholes,” Rowinski said. “A lot of the cold patch that we’ve put down is washing out. It seems like we fix one problem and three more pop up. Right now, we are just trying to keep up.”

Rowinski noted that the bathrooms and concession stands at both parks have been open for the season.

“We are going to have to dig out some of the ditches around town,” Rowinski said. “We’ve had some wash out. The ditch lines aren’t supporting the level of water.”

Grellner reported that City Pool clean-up will begin on May 13 and Pools Made Possible will be helping to get the pool ready for opening day the week of May 19.

Massey is looking for volunteers to help pour concrete for the All-Inclusive Playground.

“The work is going to take all hands,” Massey said. Massey is hoping to get a concrete plant to work with the city on pouring concrete on a Saturday so that more people can volunteer.

Massey is concerned about the plans for the restroom at the City Park that will service both the All-Inclusive Playground and the ball fields.

“We need to make sure we have family restrooms for those who need extra assistance,” Massey said. He also wanted to make sure the restrooms have both air conditioning and heating.

The city has been asked if there are any service projects.

Massey noted that they need help with the All-Inclusive Playground, extra seating is needed around the ball fields and playground, grass needs to be sowed at the City Park, just to name a few things.

“We can come up with a lot of stuff,” Massey said. “Someone could help elderly residents with yard work or maintenance.”

Massey asked that anyone in need of assistance should call City Hall and they may be able to match the residents with a service organization to help them out.

Aldermen approved outstanding bills for $566,866.72.

The City of Linn has the following ending account balances in their governmental fund accounts: general ($827,912.87), pool (-$33,920.82), park ($115,035.59), police training ($3,012.58), general-improvement and equipment (-$21,400), park-improvement and equipment (-$153,786.93), and pool-improvement and equipment ($1,948.24).

The city has the following ending account balances in their business-type funds: water ($457,272.10), water replacement ($101,688.36), sewer ($466,367.61), sewer replacement ($2,804.81), and grants (-$35,607.25).

The city holds nine certificates of deposit totaling $1,309,433.83.

The city will hold its next regular meeting on Tuesday, May 21, at 5 p.m.