HERMANN – A $15-million operating budget for the city of Hermann has been approved for the fiscal year that begins July 1, but the vote was not without some tension.

With Mayor Bruce Cox casting the tie-breaking votes, the Board of Aldermen gave first- and second-round approval to the spending plan for Fiscal Year 2027 that calls for spending more during the year than is expected to come in, which means city officials will be dipping into an available balance at the start of the new year.

Aldermen Chad Walton and Ash Geers voted in favor of the budget bill while Dolores Grannemann and Jim Schirmer voted against. There was no discussion about the proposal before the vote was taken.

The proposed budget crafted by City Administrator Patricia Heaney projects revenues of $14,059,893 and expenditures of $15,280,498. To balance the ledger, she reached into the beginning balance of about $8 million, which made for a total available funds of about $23 million.

The new budget calls for a year-end balance of about $7 million and includes a 3-percent pay raise for employees. It also includes a 10-percent increase in health insurance cost.

The General Fund provides money for much of the services to residents. It includes such things as administration, billing and collecting, streets, police, communications, the Amtrak station and economic development. This fund begins the fiscal year with a estimated balance of slightly more than $600,000 and is budgeted to end the year with a balance of just under $107,000.

Taxpayers could face a significant hit when the final bill arrives for repairs needed to City Hall.

“City Hall building repairs have the potential to be a large expense,” Heaney wrote in her budget message to the mayor and Board of Aldermen. A recent engineering study suggests further evaluation and repairs of the foundation will be needed, along with roof repairs or replacement.

“Although the engineers are unable to give us formal estimates at this time, I earmarked $300,000 for possible building repairs and an additional $5,000 for a porch awning,” Heaney said in her budget message.

Street improvements are funded primarily with a 7/8ths-cent sales tax that was approved by voters in 2019. This year’s planned projects are improvements to the 200 block of West 2nd Street; the 100 and 200 blocks of Mozart; and the 400 block of Stark Boulevard.

“As we try to keep nearly a year’s worth of revenue in this account, the estimated year-end balance is $567,679,” Heaney said.