A number of cuts to the City of Sedalia’s proposed budget for Fiscal Year 2027 were put forward by council members at the Monday, Mar. 2 city council meeting, but a deficit spend is still projected for the general fund in the next year.

Council members spent most of their 90-minute meeting reviewing their priorities in an effort to avoid drawing on the city’s reserve fund balance that currently sits at just over $7 million. City administrator Matthew Wirt called the council’s decisions tough ones to make.

Council members debated between asking city employees to start contributing $100 per month their health insurance in 2027, or reducing the amount deposited in Health Savings Accounts starting April 1. Wirt says the council ultimately agreed to reduce the city’s HSA contributions, which will impact 185 of the city’s 230 employees.

The council also voted to reduce merit pay increases from two percent to one percent, saving $95,786.

Several line-items were dropped for the next year, including a booth at the Missouri State Fair and advertising the Chamber of Commerce’s Christmas Parade. The council also agreed to have fewer members attend the annual Missouri Municipal League conference, as most of their sessions are available virtually. By the end of the discussion, the council had reduced their projected general fund deficit spend from $282,180.22 to $39,207.22.

The council had less of a struggle with the other three budget funds. Council members came to a consensus on allotting $1.5 million for street repairs and improvements, removing a dump truck from the capital improvements project. A projected $147,000 deficit for the sanitation fund was eliminated by forgoing the purchase of a new truck, as well as reducing the amount of roll-off containers purchased next year to replace aging ones.

Consideration of the budget will continue at the council’s next meeting March 16.