The Marthasville Board of Aldermen approved the city’s fiscal year 2025 budget following a public hearing at their June 18 meeting. 

The city’s fiscal year runs from July 1, 2025 to June 30, 2026 and although the budget was approved, figures approved in the document are subject to change following a vote from the aldermen. 

“It’s a guideline to go by. It’s not set in stone although the board of aldermen can spend more or less than this budget, whatever they want to do,” said Mayor David Lange. 

The current budget projects $1.25 million in revenue for the city and estimated expenses of just under $2 million. The city is projecting a roughly $730,000 deficit in fiscal year 2025. 

Lange noted some of the larger spending items were located in the streets and capital improvements funds. The city intends to spend roughly $400,000 on street improvements and another $400,000 on capital improvements including roughly $200,000 on sidewalk and curb improvements along Depot Street. 

“We’ve budgeted roughly $400,000 to be spent out of the streets department, whether that gets spent or not, who knows,” said Lange. 

The city did project a decrease in income to the general fund and as well as a significant decrease in spending on that fund. According to estimates for fiscal year 2024, the city expects to take in just over $450,000 in general fund revenue, while they only project roughly $417,000 in fiscal year 2025. 

Expenditures in the general fund are also expected to decrease significantly from an estimated $1.03 million in fiscal year 2024 to just over $300,000 in fiscal year 2025. The city did transfer $850,000 out of the general fund in operating costs for the transportation fund in fiscal year 2024 and is not projecting a similar transfer in fiscal year 2025. 

While the city is projected to have a deficit overall, they expect a surplus in the general fund of just over $100,000 in fiscal year 2025, compared to an estimated $580,000 deficit in fiscal year 2024. 

The city’s largest expenses overall will come from just under $460,000 in projected transportation expenditures due to the city’s ongoing street improvement efforts including sidewalks on Depot Street and the expansion of Fifth Street. 

Lange also noted the city saw a decrease in sales tax revenue from fiscal year 2024 and was surprised at the loss. 

“$65,000 is what we are short from last year on our sales tax revenue,” said Lange. “And it kind of surprised me when I went through the budget and saw that, very seldom does the sales tax revenue go down because the rates don’t change.”

Marthasville assesses a half-cent sales tax to retail businesses in the city limits. Lange mused the decrease may have come from the closing of Skeeter’s Bar and Grill on Highway 47 and hoped the revenues would return to normal levels in fiscal year 2025 now that the Outfield Bar and Grill has opened. 

“I think our revenue will probably return to what it was last year, now that new owners are in there and the business is picking up,” said Lange. 

Other than the decrease in sales tax revenue, Lange did not feel there were any significant or unexpected changes to the budget and it was approved unanimously. There was no public comment at the hearing.