Joplin's budget warning: Spending rises while reserves shrink

Joplin's newly adopted $182.9 million budget reveals growing concerns about stagnant revenue, rising operating costs and shrinking reserves.

The fiscal year 2027 budget anticipates a $1.9 million general fund shortfall, with expenditures of $46.5 million against $44.6 million in revenue.

General fund revenue is projected to decline slightly from fiscal 2026, while daily operating expenses climb from $34.3 million to $36.1 million.

City Manager Nick Edwards identifies minimal revenue growth as the biggest threat to Joplin's financial position, warning that limited tax collections make it increasingly difficult to meet demands for city services and infrastructure.

Sales tax revenue is expected to increase 2%, reaching $18.8 million. Marijuana sales tax collections are projected to grow 5%, generating approximately $971,000. However, grant revenue is expected to decline nearly 22%.

City reserves projected to shrink

One of the budget's most significant findings involves the city's reserves.

Joplin's general fund balance stood at approximately $31 million at the end of fiscal 2025. That figure is projected to fall to $26.1 million in fiscal 2026 and $24.2 million by the end of fiscal 2027.

Unrestricted reserves are projected to decline nearly 31% over two years, from $20.7 million to $14.3 million.

Two dedicated sales tax funds also face concerning projections. The parks and stormwater fund is expected to end fiscal 2027 with a negative balance of approximately $9 million, while the capital improvement sales tax fund is projected to finish $3.4 million in the red.

Those projections do not mean the city is insolvent, but they raise questions about project financing and the timing of expenditures and revenue.

Employee costs increase, but few positions added

Personnel expenses are rising 7.5%, or approximately $1.8 million, to $26 million.

The budget includes a 2% cost-of-living increase for eligible employees, costing $685,000, along with $600,000 in scheduled step increases.

Despite the additional spending, the city's workforce is growing by just 1.5 full-time equivalent positions, reaching 647.03. Approximately 35 full-time positions remain vacant.

A voter-approved half-cent sales tax for police and fire services is expected to take effect once the city's public safety pension plan reaches 120% funding.

The new tax is projected to generate approximately $9.7 million during the fiscal year, supporting police and fire operations and equipment purchases.

However, the budget does not immediately add more officers or firefighters. Instead, 37 existing public safety positions will move from the general fund to the new sales tax fund.

Millions earmarked for streets, drainage and downtown

Some of the largest expenditures involve infrastructure projects funded through dedicated voter-approved taxes.

The budget includes $5.5 million for construction of a parking garage at Sixth Street and Virginia Avenue, $5 million for an Interstate 44 culvert project and $4 million for street overlays.

Other allocations include $1.17 million for street surface repairs, $625,000 for sidewalk accessibility improvements and $500,000 for neighborhood street improvements.

Stormwater projects include $2.35 million for Sunnyvale improvements and $800,000 combined for design work at Durham Acres and 17th Street and Mina Avenue.

The city also plans to spend a combined $1 million on beautification projects at 10th and Main streets and $150,000 on roundabout art.

Sewer upgrades carry multimillion-dollar price tag

Joplin's wastewater system faces significant equipment replacement costs.

The budget includes $5 million for improvements to a filtration system at the Shoal Creek wastewater treatment facility and another $2.2 million to replace its ultraviolet disinfection system.

Additional sewer projects include $1.5 million to address infiltration and inflow and $930,000 for a sewer line replacement at Tin Cup.

Parks and recreation spending is also increasing, with $195,000 designated for repainting the lap pool at Schifferdecker Aquatic Center and $240,000 for new netting at Joe Becker Stadium.

Animal control operating expenses are projected to increase from approximately $567,000 to $654,000, although the budget's major capital project list does not identify construction funding for a new animal shelter.

Spending challenges remain

Although total general fund expenditures are declining approximately 6% from fiscal 2026 estimates, much of that reduction comes from fewer major equipment purchases.

Capital spending drops from $6.6 million to $2.9 million, while recurring operating costs continue climbing.

The budget illustrates a growing challenge for city leaders: maintaining services and completing voter-approved improvements while revenue growth remains limited.

And while Joplin maintains substantial reserves, projections showing declining balances and continued operating pressures suggest tougher financial decisions could be ahead.