City Council Agendas

NOTICE CITY COUNCIL BUDGET WORK SESSION TUESDAY, AUGUST 19, 2025 6:00 p.m. The City Council of the City of Blue Springs, Missouri will hold a budget work session on Tuesday, August 19, 2025 beginning at 6:00 p.m. in the Administration Training Room, #210, Blue Springs City Hall, 903 W. Main Street, in Blue Springs, Missouri, to discuss the proposed City budget for the 2025-26 Fiscal Year. This Notice was posted at Blue Springs City Hall and on the City’s website on August 6, 2025. Erin Ford, City Clerk  Friday, August 1, 2026 Dear Mayor Chris Lievsay and Councilmembers: I am pleased to submit the City of Blue Springs’s recommended operating budget for fiscal year 2025-26 which will be presented during the August 13, 2025, budget work session. The recommended budget communicates the City’s plan for allocating resources to provide services to the residents and businesses of Blue Springs. The total proposed FY 2025-26 (hereafter FY 2026) budget of $112,763,377 is a financial plan that focuses on delivering essential services while maintaining fiscal discipline. The budget is one of the tools used to implement the City’s strategic plan for the current and future years. Major Initiatives – New Council Strategic Plan Adoption– The Blue Springs Strategic Plan is scheduled for adoption by the Council on August 18, 2025. Strategic planning helps guide the City into the future and contributes to more effective governance and the overall well-being of the City. Website Redesign and Domain Name Change – The City’s website redesign is underway and will be completed by March 2026. The redesign is intended to create a more modern, engaging and user-friendly website. As part of this project, the City’s domain name will change from bluespringsgov.com to bluespringsmo.gov. 2026 Preventive Pavement Management Plan (PPMP) – Next year’s PPMP is scheduled to complete 85.6 lane miles using the remaining $13.28 million in funds from the Neighborhood Street Preservation bond project and annual program, bringing the total number of lane miles completed to 137 lanes miles. The original plan estimated a completion of 35 lane miles. This project also includes mill and overlay for Mock Avenue from 7 Highway to ADP, South Outer Road, RD Mize, 15th Street and 19th Street. Downtown Streetscape Plan – This plan will be completed in FY 2026 and includes new pavement, sidewalks, landscaping, water main and parking on Main Street from 7 Highway to 15th Street. This project was also included in the 2024 Bond election. 1 12th Street Construction – This 2024 bond project is also scheduled for completion in FY 2026. This street connects Southcrest to Wyatt Road and must be completed before construction can begin on Southwest Park. Major Initiatives – Ongoing Wyatt Road East Construction – The funds were included for these projects in previous budget years and is now expected to be constructed in FY 2026. Wyatt Road East will be reconstructed from 7 Highway to Adams Dairy Parkway. Comprehensive Plan Update - This project is funded through the Capital Improvements Program and is now anticipated to begin in 2026. The cost for this project is $250,000. The plan was last updated in 2014 and serves as a guide for the physical development of the City that fosters quality growth, conservation, and redevelopment. Parks, Recreation and Open Space Plan Update - The Parks, Recreation and Open Space Master Plan will be completed in early FY 2026. This is a 10-year plan that has been the catalyst for the Park improvements and expanded programs that have been occurring over the last nine years. Public Works Facility – This project includes renovation of the existing Public Works space and the addition of new space for vehicle equipment and storage, locker room facilities, conference/training room and secure storage of repair inventories and critical equipment. Highway AA Road Improvements - AA Highway will be improved from 40 Highway to the eastern city limits and includes road widening, profile safety corrections, new curb and gutter, accommodations for pedestrians and bicycles and improvements to the traffic signal at AA Highway and Adams Dairy Parkway. This project is now scheduled to be completed in FY 2027. Sni-A-Bar Wastewater Treatment Plant – The City’s wastewater treatment plant is required to make $60.3 million in improvements within seven years to maintain compliance with the standards of the Environmental Protection Agency. The voters of Blue Springs will be asked to vote in April 2026 to issue bonds to complete this project. The City of Grain Valley will be responsible for 35% of the total project cost. 2 Total Budget Summary FY 2026 Budgeted Revenues Staff projects total FY 2026 budgeted revenues to be $4,927,164 (5.56%) higher than the FY 2025 budget amount. The proposed revenue budget totals $93,493,836 plus $19,269,541 of cash reserves totaling $112,763,377 for planned expenditures. The use of cash reserves is primarily in the Capital Projects Fund for completion of the 2024 bond projects. Table 1-A compares the proposed FY 2026 revenue budget to the adopted FY 2025 revenue budget fund: Table 1-A Adopted Budget Proposed Budget Percentage Percent of Fund FY 2024-25 FY 2025-26 Change Total Budget General $ 31,324,849 $ 32,283,153 3.06% 28.63% Hotel/Motel Tax $ 780,287 $ 792,608 1.58% 0.70% Public Safety Sales Tax $ 5,466,967 $ 5,668,772 3.69% 5.03% Parks Sales Tax $ 6,012,322 $ 5,798,551 -3.56% 5.14% Debt Service $ 2,183,605 $ 2,286,317 4.70% 2.03% Capital Projects $ 5,203,936 $ 5,938,165 14.11% 5.27% TIF Capital Projects $ 6,935,731 $ 7,195,110 3.74% 6.38% Fieldhouse $ 2,718,221 $ 3,362,476 23.70% 2.98% Golf Course $ 2,334,661 $ 2,573,382 10.23% 2.28% Water $ 12,335,571 $ 13,268,163 7.56% 11.77% Sewer $ 13,270,525 $ 14,327,140 7.96% 12.71% Use of Cash Reserves $ 7,428,859 $ 19,269,541 159.39% 17.09% Total Budget by Fund $ 95,995,533 $ 112,763,377 17.47% 100.00% Table 1-A shows the projected changes in revenues by fund. The revenue budgets for all funds are increasing as compared to the adopted budget for FY 2025 with the largest increases in the General Fund of $958,301 or 3.06%, $932,592 or 7.56% in the Water Fund and $1,056,616 or 12.71% in the Sewer Fund. Major revenue sources are budgeted monthly and closely monitored throughout the year to identify any fluctuations or trends early which would allow for timely adjustments to the budget. This proactive approach provides for better financial planning and decision making, ensuring that the budget remains aligned with the actual revenue performance. 3 Table 1-B compares the proposed FY 2026 revenue budget to the adopted FY 2025 revenue budget by category: Table 1-B Adopted Budget Proposed Budget Percentage Percent of Category FY 2024-25 FY 2025-26 Change Total Budget Taxes $ 47,430,968 $ 49,094,475 3.51% 43.54% Intergovernmental $ 5,456,971 $ 5,962,616 9.27% 5.29% Charges for Services $ 4,270,548 $ 4,803,993 12.49% 4.26% Licenses and Permits $ 1,262,100 $ 1,130,588 -10.42% 1.00% Fines and Forfeits $ 431,527 $ 665,248 54.16% 0.59% Interest $ 3,505,964 $ 3,558,371 1.49% 3.16% Golf Course Fees $ 2,317,792 $ 2,557,314 10.33% 2.27% Utility Fees $ 23,285,182 $ 25,011,145 7.41% 22.18% Other $ 605,620 $ 710,086 17.25% 0.63% Use of Cash Reserves $ 7,428,859 $ 19,269,541 159.39% 17.09% Total Budget $ 95,995,533 $ 112,763,377 17.47% 100.00% Revenues are expected to increase in every category in the budget next year in varying amounts and percentages, except for Licenses and Permits which are projected to decrease by $131,512 or 10.42% The ongoing high interest rates negatively impact building permits while positively impacting interest received on the City’s investments. Interest income is expected to increase slightly by $52,406 or 1.49% Taxes are estimated to increase by $1,663,507 or 3.51%, The majority of this increase of $958,304 is in the General Fund and the other funds that receive sales tax are also increasing including the Capital Projects Fund, Public Safety Sales Tax Fund, and the Parks Sales Tax fund. During FY 2026, the City will start receiving a 1% license fee from Google Fiber for the use and occupancy of public right-of-way as service is set up in the City. This budget does not include an amount for this fee due to the uncertainty of its start date and number of customers that will sign up for the service. Charges for Services are expected to increase by 12.49 % compared to FY 2025 due to continued growth in memberships at the Carson Ross Community Recreation Complex. Utility Fees are expected to increase by $1,725,963 or 7.41% due to the projected rate increases that take effect on October 1, 2025, and the increase in volumes purchased. 4 FY 2026 Budgeted Expenses The proposed budget totals $112,763,377 for planned expenditures. This is an increase of 17.47% over the adopted FY 2025 budget. Table 2-A compares the proposed FY 2026 expense budget to the adopted FY 2025 expense budget by fund: Table 2-A Adopted Budget Proposed Budget Percentage Percent of Fund FY 2024-25 FY 2025-26 Change Total Budget General $ 33,179,598 $ 34,261,282 3.26% 30.38% Hotel/Motel Tax $ 380,000 $ 690,072 81.60% 0.61% Public Safety Sales Tax $ 5,444,574 $ 6,306,888 15.84% 5.59% Parks Sales Tax $ 7,430,194 $ 5,157,444 -30.59% 4.57% Debt Service $ 1,732,648 $ 2,303,244 32.93% 2.04% Capital Projects $ 5,768,650 $ 26,718,834 363.17% 23.69% TIF Capital Projects $ 6,905,602 $ 7,163,164 3.73% 6.35% Fieldhouse $ 2,693,289 $ 3,153,675 17.09% 2.80% Golf Course $ 2,384,660 $ 2,292,721 -3.86% 2.03% Water $ 13,474,983 $ 12,872,989 -4.47% 11.42% Sewer $ 16,601,337 $ 11,843,064 -28.66% 10.50% Total Budget by Fund $ 95,995,533 $ 112,763,377 17.47% 100.00% The expense budgets for all funds except the Public Safety Sales Tax fund and the Fieldhouse/Aquatics fund are increasing as compared to the adopted budget for FY 2024. Individual funds are like separate accounts or "pools" of money with specific designations and limitations on their usage. The funds are usually created to ensure that the revenues generated from certain sources are used for their intended purposes, preventing the money from being mixed with other general funds. By separating funds based on revenue sources and the restrictions placed on them, it is easier to manage budgets, track spending, and ensure that money is allocated appropriately for specific purposes as intended by the voters or governing bodies. This budgeting approach provides transparency and accountability, as it allows the public to understand where the money comes from and how it is being used, ensuring that funds are used responsibly. 5 Table 2-B compares the proposed FY 2026 expense budget to the adopted FY 2025 expense budget by category: Table 2-B Adopted Budget Proposed Budget Percentage Percent of Category FY 2024-25 FY 2025-26 Change Total Budget Personal Services $ 29,117,037 $ 30,509,656 4.78% 27.06% Supplies and Materials $ 3,495,914 $ 3,735,312 6.85% 3.31% Contractual Services $ 22,893,413 $ 23,905,657 4.42% 21.20% Sub-Total Operations $ 55,506,364 $ 58,150,625 4.76% 51.57% Debt Service $ 17,397,088 $ 18,275,115 5.05% 16.21% Capital Outlay $ 2,138,700 $ 2,767,923 29.42% 2.45% Capital Improvements $ 20,953,380 $ 33,569,714 60.21% 29.77% Total Budget $ 95,995,533 $ 112,763,377 17.47% 100.00% The operating budget that includes personal services, supplies and materials and contractual services is increasing by $2,644,261 or 4.76% while the entire expenditure budget is increasing $16,767,844 or 17.47%. FY 2025 Amended Budget Comparison During FY 2025, a budget amendment in the amount of $38,343,623 was made to account for the issuance of General Obligation Bonds and to account for increased project costs in the General Fund, Parks Sales Tax Fund, Fieldhouse/Aquatics, and Golf Course. Table 2-B (1) compares the proposed FY 2026 expense budget to the amended FY 2025 expense budget by fund: Table 2-B (1) Amended Budget Proposed Budget Percentage Percent of Fund FY 2024-25 FY 2025-26 Change Total Budget General $ 33,343,655 $ 34,261,282 2.75% 30.38% Hotel/Motel Tax $ 380,000 $ 690,072 81.60% 0.61% Public Safety Sales Tax $ 5,444,574 $ 6,306,888 15.84% 5.59% Parks Sales Tax $ 7,860,494 $ 5,157,444 -34.39% 4.57% Debt Service $ 1,732,648 $ 2,303,244 32.93% 2.04% Capital Projects $ 43,333,643 $ 26,718,834 -38.34% 23.69% TIF Capital Projects $ 6,905,602 $ 7,163,164 3.73% 6.35% Fieldhouse $ 2,800,768 $ 3,153,675 12.60% 2.80% Golf Course $ 2,461,452 $ 2,292,721 -6.85% 2.03% Water $ 13,474,983 $ 12,872,989 -4.47% 11.42% Sewer $ 16,601,337 $ 11,843,064 -28.66% 10.50% Total Budget by Fund $ 134,339,154 $ 112,763,377 -16.06% 100.00% Another budget will be prepared in August that will consist primarily of expenses for Public Works projects and operating costs for the snowstorms experienced in early 2025. 6 Employee Salaries and Benefits Table 2-C compares the proposed FY 2026 personal services budget to the adopted FY 2025 personal services budget by account type: Table 2-C Percent of Total Adopted Budget Proposed Budget Percent Personal Services Account FY 2024-25 FY 2025-26 Dollar Change Change Budget Full-Time Salaries $ 18,479,460 $ 19,423,399 943,938 5.11% 63.66% Part-Time Salaries $ 1,643,676 $ 2,099,496 455,820 27.73% 6.88% Overtime $ 655,301 $ 655,301 - 0.00% 2.15% FICA $ 1,296,193 $ 1,375,118 78,926 6.09% 4.51% Medicare $ 303,260 $ 321,862 18,602 6.13% 1.05% LAGERS $ 1,844,043 $ 2,104,744 260,701 14.14% 6.90% Health Insurance $ 3,127,894 $ 2,968,070 (159,825) -5.11% 9.73% Dental Insurance $ 195,737 $ 197,166 1,429 0.73% 0.65% Life Insurance $ 82,013 $ 84,963 2,950 3.60% 0.28% Vision Insurance $ 19,806 $ 19,940 133 0.67% 0.07% Health Savings Account $ 201,600 $ 212,400 10,800 5.36% 0.70% EAP $ 12,393 $ 12,563 170 1.37% 0.04% Unemployment Insurance $ 25,000 $ 25,000 - 0.00% 0.08% Worker's Compensation Insurance $ 1,230,662 $ 1,011,636 (219,026) -17.80% 3.32% Total $ 29,117,037 $ 30,511,657 1,394,620 4.79% 100.00% Costs of employee salaries and benefits are budgeted at $30,511,657, an increase of $1,773,247, or 4.79% over the prior year's budget of $29,117,037. Wages and benefits encompass approximately 27.06 % of the total budget and 66.57% of the General fund budget, from which most employee costs are funded. Investing in employee salaries and benefits is a crucial step in ensuring that employees are fairly compensated and motivated to continue their valuable contributions to the City's success. By striving to maintain market-level salaries and benefits, the City demonstrates its commitment to remaining competitive in the job market. This is essential for retaining existing talented employees and attracting new talent to join the organization. This budget includes a pay range adjustment of 1.5% for all non-represented positions, effective in October, and a 3% increase for employees on their service anniversary that may result in a lump sum payment if the employee is at the top of the pay range. The longevity plan also continues for all non-represented full-time and part-time employees who will receive a 2.5% pay increase at each 5-year service anniversary. Employees that are represented will be receiving raises as stipulated in their bargaining unit agreements. The payroll budget includes a vacancy allowance, which means funds have not been included for three authorized police officer positions that are currently vacant. In past years, funds have not been included for five positions. This change has been made to adjust to current position 7 openings. These positions will be filled as soon as possible, and the budget will be reviewed to determine if a budget amendment is needed. Budgeting for a vacancy allowance is a common practice in organizations, especially when hiring for certain positions might take longer than expected due to factors like a competitive job market or specific skill requirements. This approach allows the City to be flexible in managing its budget while ensuring that necessary positions are eventually filled. The rates for employee health insurance for the current year are decreasing by 5.11%. This is the second consecutive year health insurance rates have decreased. This achievement can be attributed to the ongoing employee participation in the wellness plan managed by the Human Resources Department. Workers Compensation insurance is also decreasing by $219,026 or 17.80%, because COVID-related costs are no longer included in the three-year average used to set our rates. This budget includes 340.13 full-time equivalents which is an increase of one position over the number approved in the FY 2025 budget. An Animal Control Officer position was added to bring the total number of Animal Control Officers to five. Throughout the year, several positions may be renamed based upon experience, job responsibilities and evolving organizational needs, without increasing the total number of employees. Table 2-D summarizes the changes to the full-time equivalent positions in the proposed FY 2026 budget: Table 2-D Summary of Full-Time Equivalents: Department Position FTE Changes Adopted 2024-25 Budget FTE's 339.13 Police Animal Control Officer 1 Subtotal FYE Proposed Changes 1 Proposed Budget 2025-26 FTE's 340.13 Capital Improvements Program (CIP) The CIP guides the City in the planning, scheduling, and budgeting for maintenance, replacement, and major improvements related to City assets and infrastructure. It outlines expenditures, allocates existing funds, and anticipates future revenues to rehabilitate, restore, improve, and add to the City’s infrastructure. Each year, City staff develops a CIP forecast for the next five fiscal years. The process begins annually in December and usually concludes in late spring with its adoption by the City Council. This year’s CIP was adopted by the City Council on July 7, 2025. The proposed CIP for FY 2026 through FY 2030 identifies many potential CIP projects totaling $237.6 million of which $115.8 million are funded and $121.8 million are unfunded. Last year’s adopted CIP was $258,850,306, a decrease of 8.2% or $21,262,240. 8 Although projects are recommended and adopted by the City Council each year, the CIP is only a proposed plan. Therefore, the CIP may be adjusted after adoption to reflect altered or emerging priorities of the City Council as well as any changes in available funds. The list of projects moved from the unfunded to the funded list for FY 2026 - 2030 total $31,668,328 and consist primarily of the projects that were approved at the election on August 6, 2024. Table 2-E includes the projects moved from the unfunded to the funded list: Table 2-E Project # Project Amount CD-04 Downtown Master Plan Implementation $ 4,904,600 PS-22 Council Chambers/Court Room Audio/Visual Project $ 175,000 ST-06 Pavement Management Program $ 13,028,308 ST-24 Snow Plow / Dump Truck $ 1,045,420 ST-49 ADP Duncan Road Right Turn Lane $ 1,725,000 ST-55 SW 12th Street Improvements $ 4,885,000 ST-66 Mock Avenue Improvements $ 5,925,000 TOTAL $ 31,688,328 The proposed budget for capital improvements and outlay for FY 2026 recommends capital expenditures totaling $36,337,637. Highlights of the approved amount include: • $2.9 million for Park improvements • $475,000 for Public Safety projects • $26.9 million for Street and Stormwater projects • $2.19 for Sewer projects • $1.2 million for Water projects • $2.8 million for capital outlay Table 2-F summarizes the proposed Capital Improvements and Capital Outlay for FY 2026: Table 2-F Improvement Type Adopted Budget Proposed Budget Percent of Parks and Recreation $ 5,220,000 $ 2,950,000 8% Public Safety $ 85,000 $ 475,000 1% Street Improvements & $ 5,768,650 $ 26,718,834 74% Sanitary Sewer System $ 7,287,973 $ 2,187,155 6% Water System $ 2,591,757 $ 1,238,725 3% Capital Outlay and Equipment $ 2,138,700 $ 2,767,923 8% Total Improvements $ 23,092,080 $ 36,337,637 100% 9 Please see the CIP section for detailed information on the adopted CIP and Budget in Brief section in the budget document for a detailed list of capital outlay items. Total General Fund Budget Summary FY 2026 General Fund Revenues Table 3-A compares the proposed FY 2026 General Fund Revenues to adopted FY 2025 General Fund Revenues: Table 3-A Adopted Budget Proposed Budget Percent Percent of Total Revenue Source FY 2024-25 FY 2025-26 Change Budget Taxes $ 22,225,816 $ 22,760,217 2.40% 65.48% Administrative Charges $ 2,307,146 $ 2,423,789 5.06% 6.97% Licenses and Permits $ 1,262,100 $ 1,130,588 -10.42% 3.25% Other Government Sources $ 4,698,081 $ 4,971,308 5.82% 14.30% Charges for Services $ 1,638,597 $ 1,529,824 -6.64% 4.40% Fines and Forfeits $ 424,191 $ 658,994 55.35% 1.90% Interest Income $ 650,419 $ 665,224 2.28% 1.91% Other $ 425,644 $ 566,999 33.21% 1.63% Transfers In $ 50,955 $ 54,341 6.64% 0.16% Total General Fund Revenues $ 33,682,949 $ 34,761,283 3.20% 100% Some highlights from the proposed FY 2026 revenues in the General Fund are: • General Fund revenues are projected to increase by 9.08% or $2,892,388 • Taxes are projected to increase by $1,597,073 or 7.55% over the FY 2025 budget. Sales taxes are projected to increase by $531,373 or 4.95% • Licenses and permits are projected to decrease by $52,992 or 4.48% below the FY 2025 budget due to projected lower revenues for building permits • Charges for services are projected to decrease by $73,020 or 4.56% below the FY 2025 budget. This change is a result of budgeting for growth that has not occurred over the last couple of years in Youth Sports and Summer Camp. • Fines and forfeits are projected to increase by $218,705 or 49.67% over the FY 2025 budget continuing the FY 2025 trend of increasing revenue from court fines • Interest income is projected to increase by $93,699 or 16.39% over the FY 2025 budget due to receiving higher rates on investments FY 2026 General Fund Expenditures Total budgeted expenditures and transfers in the General Fund are estimated at $34,761,282 an increase of $1,078,332 or 3.20% over the adopted FY 2025 expenditures and transfers. Most of this increase is in personal services and capital outlay costs. 10  Table 3-B compares the proposed FY 2026 General Fund expenditure budget to the Adopted FY 2025 expenditure budget: Table 3-B Percent of Adopted Budget Proposed Budget Percentage Operating Category FY 2024-25 FY 2025-26 Change Budget Personal Services $ 22,532,215 $ 23,140,860 2.70% 66.57% Supplies and Materials $ 2,209,641 $ 2,385,406 7.95% 6.86% Contractual Services $ 7,390,741 $ 7,443,558 0.71% 21.41% Capital Outlay $ 1,047,000 $ 1,291,458 23.35% 3.72% Transfers Out $ 503,354 $ 500,000 -0.67% 1.44% General Fund $ 33,682,949 $ 34,761,282 3.20% 100.00% General Fund Reserve Information The City’s General Fund Reserve Policy is currently 25% of General Fund operating expenditures. In July 2021, the City Council amended the Governmental Fund Balance Policy that complies with Governmental Accounting Standards Board (GASB) Statement No. 54. The adopted reserve calculation in the policy is based upon the following goals: 1. Compliance with GASB Statement No. 54 2. Provide the capacity to provide sufficient cash flow for daily operating needs 3. Secure and maintain investment grade credit ratings 4. Offset economic downturns or revenue shortfalls and provide funds for unforeseen expenditures related to emergencies In addition to reserves of 25%, each year 50% of the growth in unassigned fund balance will be allocated to the Pavement Management Program. The total reserve amount for the FY 2026 budget year is estimated at $8,242,456. Table 3-C provides additional projected fund balance, designation, and reserve information for the General Fund: Table 3-C General Fund Projected Fund Balance Ending Sept. 30,2024 Non-spendable & Restricted $2,300,000 25% Reserves $7,665,349 Other Assigned & Committed Funds $5,739,103 Unassigned $1,700,000 Total Fund Balance $17,404,452 11  General Fund Projected Fund Balance Ending Sept. 30, 2026 Non-spendable & Restricted $ 2,300,000 25% Reserves $ 8,242,456 Other Assigned & Committed Funds $ 7,000,000 Unassigned $ 2,246,342 Total Fund Balance $ 19,788,798 Conclusion This executive summary includes only a few of the highlights of the entire budget. Other notable and significant budgetary changes are provided in the department budget summaries for each department and program. The detailed projections for revenues and expenses are also included by fund and category. I would like to extend my gratitude and appreciation to the leadership team and Lori Turner for their assistance and collaboration in the development of this balanced budget for the fiscal year 2025-26. Sincerely, Christine Cates City Administrator 12  BUDGET IN BRIEF City of Blue Springs, Missouri October 1, 2025 - September 30, 2026 The Fiscal Year 2025-26 budget for the City of Blue Springs is the fiscal plan for this city for the next year. City Departments have set forth the goals and objectives they want to accomplish, including services and capital improvement projects.  Revenues  The City of Blue Springs receives revenues from several sources, including property taxes, sales taxes, utility franchise fees, licenses fees, fines, charges for services, grants from other governmental agencies, donations, water sales and sewer services.  Some of our largest revenue sources include: − $12,272,051 - Water Sales − $12,240,359 - Sewer Service − $11,261,808 - 1% City Sales Tax − $ 8,040,522 - Property Taxes − $ 7,195,110 - Tax Increment Finance Tax (TIF) − $ 5,798,551 - Parks Sales Tax − $ 5,962,616 - Other Government Sources − $ 5,379,087 - Transportation Sales Tax − $ 5,359,472 - Public Safety Sales Tax − $ 4,729,688 - Utility Franchise Fees • Overall revenues are expected to increase in nearly every category next year. With the largest increases in the General Fund by 3.06% or $958,301, Water Fund by 7.56% or $932,592 and Sewer Fund by 12.71% or $1,056,616. Licenses and Permits are projected to decrease compared to the adopted FY 2024-25 budget due to rising interest rates which negatively impacts building permits. • The General Fund balance is required to stay at or above an amount equal to 25 percent of General Fund operating expenditures to provide for a 25 percent Emergency Reserve Fund. In addition, reserves of 25% each year, 50% of the growth in unassigned fund balance will be allocated to the Pavement Management Program. The 2025-26 budget projects a total reserve amount of $8,242,456 and anticipates fund balance will exceed this amount. 1  Where the Money Comes From Revenue by Source Fines and Forfeits Interest Income 1% 4% Other 1% Property Tax Utility Service Fees 8% Golf Course Fees 27% 3% City Sales Tax 12% Taxes - Other 9% Charges for Services 5% Public Safety Sales Tax Parks Sales Tax 6% Licenses and Permits Utility Franchise Fees 6% Other Government 1% 5% Sources Transportation Sal 6% Tax 6% Fiscal Year 2025-26 Property Tax $ 8,040,522 City Sales Tax $ 11,261,808 Transportation Sales Tax $ 5,379,087 Public Safety Sales Tax $ 5,359,472 Parks Sales Tax $ 5,763,011 Utility Franchise Fees $ 4,869,219 Taxes - Other $ 8,421,355 Licenses and Permits $ 1,130,588 Other Government Sources $ 5,962,616 Charges for Services $ 4,803,993 Golf Course Fees $ 2,557,314 Utility Service Fees $ 25,011,145 Fines and Forfeits $ 665,248 Interest Income $ 3,558,371 Other $ 710,086 Use of Cash Reserves $ 19,269,541 Total $ 112,763,377 2  Expenditures Expenditures for the City of Blue Springs in the Fiscal Year 2025-26 will total $112,763,377, an increase of 17.47% over the adopted FY 2025 budget.  The Expenditures include funding for: − personal services costs (salaries and benefits) − supplies and materials − contracted services − debt service payments (principal and interest) − capital outlay for equipment, vehicles, and computer enhancements, and − capital improvement projects  The City has 340.13 Full-time Positions (including full-time and part-time employees). This is an increase of one position over the number approved in the FY 2025 budget. An Animal Control Officer position was added to bring the total number of Animal Control Officers to five. Throughout the year, several positions may be renamed based upon experience, job responsibilities and evolving organizational needs, without increasing the total number of employees.  Capital improvements and outlay for FY 2026 are focusing on the following priority areas: − $2.9 million for Park improvements − $475,000 for Public Safety projects − $26.9 million for Street and Stormwater projects − $2.19 for Sewer projects − $1.2 million for Water projects − $2.8 million for capital outlay  Other major expenditure line items include Wholesale Water Purchases, Purchased Sewer Services, Facility Utilities, Street Light Utilities, Park Maintenance Supplies, Training, Fuel, Street Maintenance Materials. 3  Where the Money Goes Expenditures by Function Debt Service 16% Capital Improvements General Government Public Works 30% 8% 4% Public Safety 17% Sewer Utility 6% Water Utility 7% Capital Outlay 2% Fieldhouse/Aquatics 3% Hotel/Motel 0% Parks and Recreation Golf Course Vesper Hall Senior 3% 2% Center Building Maintenance 1% 1% Fiscal Year 2025-26 General Government $ 8,872,622 Public Works $ 4,188,030 Public Safety $ 18,813,449 Fieldhouse/Aquatics $ 3,153,675 Parks and Recreation $ 3,682,244 Vesper Hall Senior Center $ 738,884 Building Maintenance $ 994,029 Golf Course $ 2,206,221 Water Utility $ 8,318,489 Sewer Utility $ 6,492,910 Hotel/Motel $ 690,072 Capital Outlay $ 2,767,923 Capital Improvements $ 33,569,714 Debt Service $ 18,275,115 Total $ 112,763,377 4  Capital Improvements Total Expenditures: $36,337,637 Maintenance $ 18,723,797 PR-15 Blue Springs Park Improvements $ 300,000 PR-17 Roatary Park Improvements $ 1,100,000 PR-18 Hidden Valley Park Improvements $ 150,000 PR-23 Central Park Improvements $ 354,264 PR-80 Trail Renovations $ 50,000 PS-13 Police Department Locker Room Expansion $ 300,000 SAN-07 Citywide Maintenance $ 1,102,500 SNI-01 Sludge Removal $ 1,000,000 ST-06 Pavement Maintenance Program $ 13,028,308 STM-06 Stormwater Maintenance $ 100,000 WA-12 Miscellaneous Watermain Maintenance $ 1,000,000 WA-14 Water Tank Maintenance Contract $ 238,725 Equipment Replacement $ 621,582 PS-22 Council Chambers/court Room Audio/visual Project $ 175,000 ST-24 Snow Plow / Dump Truck $ 230,669 ST-26 1.5 Ton Dump/Snow Truck $ 75,219 ST-68 Ford F250 Pick-up Truck $ 56,039 SAN-20 Hydraulic Track Loader $ 84,655 Capital Improvements $ 14,224,335 CD-04 Downdown Master Plan Implementation $ 4,904,600 PR-71 Southwest Park Construction $ 1,200,000 ST-49 ADP Duncan Road Right Turn Lane $ 1,515,000 ST-55 SW 12th street Improvements $ 4,514,984 ST-64 Crafco Crack Sealer $ 73,096 ST-65 Rubber Tire Skid Loader $ 84,655 ST-66 Mock Avenue Improvements $ 1,932,000 Capital Outlay and Equipment $ 2,767,923 Codes $ 114,257 Information Technology $ 88,500 Parks Maintenance $ 413,700 Recreation $ 18,650 Police Administration $ 186,500 Police Community Services Bureau $ 47,200 Police Investigative Services Bureau $ 108,000 Police Operations Bureau $ 919,800 Golf Course $ 86,500 Sewer Maintenance $ 10,250 Sewer Operations $ 305,940 Street Maintenance $ 152,851 Water Operations $ 280,940 Water Maintenance $ 34,835 5  Capital Improvements Type of Improvement $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Maintenance Equipment Capital Capital Outlay Replacement Improvements and Equipment Fiscal Year 2025-26 Maintenance $ 18,723,797 Equipment Replacement $ 621,582 Capital Improvements $ 14,224,335 Capital Outlay and Equipment $ 2,767,923 Total $ 36,337,637 6  Where Your Tax Dollars Go Property Tax Revenue Distribution Metropolitan Community College 2% Mid-Continent Library 4% Board of Disabled Services Mental Health 1% 1% CJCFD 15% R-4 School District 63% City of Blue Springs 7% Blind Pension 1% Jackson County 6% The 2025 property tax rate is $8.1584 per $100 assessed valuation. The City's portion of the $8.1584 is $0.5801. Of the $0.5801, $0.4301 goes to the General Fund for general government purposes and $.15 pays debt service on general obligation bonds in the General Obligation Bond Debt Service Fund. 7  Where Your Tax Dollars Go Sales Tax Revenue Distribution Drug Task Force Soil Conservation 3% 1% State(Proposition C) Central Jackson County 11% Conservation Fire 1% 6% Children's Services Fund Stadium Sales Tax 3% 4% City 1% Sales Tax 12% County 6% State 34% City 1/2% Trans Tax Kansas City Zoo Tax 6% 1% City 1/2% Public City 1/2% Parks Sales Safety Sales Tax Tax 6% 6% The 2025 City sales tax rate is 8.725 % of gross sales. The City's portion of the 8.725 % is 1 percent. This is the largest general government revenue source for the City, and is used to finance general government and capital improvements. In addition, there is a .5 percent Transportation Sales Tax, which is used solely to finance transportation improvements, such as streets, a .5 percent Public Safety Sales Tax, which is used solely to finance Public Safety operations and a .5 percent Park Sales Tax, which is used solely to finance park improvements. 8  Summary of Available Net Assets Total Total Estimated Operating Projected Budgeted Estimated Fund Available Net Transfer Revenues Expenditures Available Net Assets In(Out) Assets 9/30/26 10/01/25 General Fund $ 22,128,008 $ 32,283,153 $ 34,261,282 $ 1,978,130 $ 22,128,009 G.O. Bond Debt Service $ 3,789,243 $ 2,286,317 $ 2,303,244 $ 500,000 $ 4,272,316 Capital Projects $ 43,332,110 $ 5,938,165 $ 26,718,834 $ - $ 22,551,441 TIF Capital Projects $ 9,116,638 $ 7,195,110 $ 7,163,164 $ (31,946) $ 9,116,638 Fieldhouse/Aquatics $ 1,054,429 $ 3,362,476 $ 3,153,675 $ 175,846 $ 1,439,074 Park Sales Tax $ 393,288 $ 5,798,551 $ 5,157,444 $ - $ 1,034,394 Golf Course $ 434,836 $ 2,573,382 $ 2,292,721 $ - $ 715,498 Water Utility $ 20,575,291 $ 13,268,163 $ 12,872,989 $ (918,654) $ 20,051,811 Sewer Utility $ 18,386,489 $ 14,327,140 $ 11,843,064 $ (1,505,135) $ 19,365,431 Hotel/Motel Tax $ 1,708,210 $ 792,608 $ 690,072 $ (198,241) $ 1,612,505 Public Safety Sales Tax $ 9,158,112 $ 5,668,772 $ 6,306,888 $ - $ 8,519,996 Totals $ 130,076,655 $ 93,493,836 $ 112,763,377 $ - $ 110,807,113 9  City of Blue Springs Budget Summary Fiscal Year 2025-26 Revenues Expenditures By Source: Expenditures by Function Property Tax $ 8,040,522 General Government $ 8,872,622 City Sales Tax $ 11,261,808 Public Works $ 4,188,030 Transportation Sales Tax $ 5,379,087 Public Safety $ 18,813,449 Public Safety Sales Tax $ 5,359,472 Fieldhouse/Aquatics $ 3,153,675 Park Sales Tax $ 5,763,011 Parks and Recreation $ 3,682,244 Utility Franchise Fees $ 4,869,219 Vesper Hall Senior Center $ 738,884 Taxes - Other $ 8,421,355 Building Maintenance $ 994,029 Licenses and Permits $ 1,130,588 Golf Course $ 2,206,221 Other Government Sources $ 5,962,616 Water Utility $ 8,318,489 Charges for Services $ 4,803,993 Sewer Utility $ 6,492,910 Utility Service Fees $ 25,011,145 Hotel / Motel $ 690,072 Golf Course Fees $ 2,557,314 Total $ 58,150,625 Fines and Forfeits $ 665,248 Interest Income $ 3,558,371 Operating Expenditures by Category Other $ 710,086 Personal Services $ 30,509,656 Use of Cash Reserves $ 19,269,541 Supplies and Materials $ 3,735,312 Total Projected Revenues $ 112,763,377 Contracted Services $ 23,905,657 Total $ 58,150,625 Tax Rates (As of November 1, 2025) Capital Improvement Expenditures Property Tax per $100 assessed valuation: Community Development $ 4,904,600 City of Blue Springs $ 0.5801 Parks $ 3,154,264 Central Jackson County Fire $ 1.2078 Public Safety $ 475,000 Board of Disabled Services $ 0.0732 Streets $ 21,609,970 Metropolitan Community College $ 0.1806 Sanitary Sewer $ 1,187,155 Mid-Continent Library $ 0.3152 Sni-A-Bar $ 1,000,000 Mental Health $ 0.0974 Water System $ 1,238,725 R-4 School District $ 5.1685 Capital Outlay $ 2,767,923 Jackson County $ 0.5056 Total $ 36,337,637 Blind Pension $ 0.0300 Total $ 8.1584 Sales Taxes per $1.00 in sales: City 1% Sales Tax $ 0.01000 Debt Service Expenditures City 1/2% Transportation Sales Tax $ 0.00500 General Obligation Debt $ 2,303,244 City 1/2% Public Safety Sales Tax $ 0.00500 Park Sales Tax Debt $ 2,207,444 City 1/2% Parks Sale Tax $ 0.00500 Public Safety Sales Tax Debt $ 1,375,596 Kansas City Zoo Tax $ 0.00125 TIF Capital Projects $ 6,542,023 State $ 0.03000 Grain Valley / Tri-County $ 3,000,000 County $ 0.00500 Sewer $ 2,846,808 Central Jackson County Fire $ 0.00500 Total $ 18,275,115 Stadium Sales Tax $ 0.00375 State (Proposition C) $ 0.01000 Conservation $ 0.00125 Soil Conservation $ 0.00100 Drug Task Force $ 0.00250 Children's Services Fund $ 0.00250 Total $ 0.08725 Total Budgeted Expenditures $ 112,763,377 10 11