Inside New Madrid's 2025 budget: pay raises, new city hall, and economic expansion

NEW MADRID, Mo. - Each December when New Madrid’s aldermen work on budget figures, it is for two budgets, not one.

City Administrator Aaron Griffin said it is important the public is aware what each budget is for and the projects they include.

“The city of New Madrid and Municipal Light and Power are two separate entities,” Griffin said. “They have two separate budgets, they operate differently and the monies from those two organizations do not cross paths.”

According to Griffin, the city of New Madrid’s budget is considered a government entity. The MLP budget is a business entity.

For 2025, each of those budgets will be balanced. In fact, each is projected to end with just a bit to spare.

On Dec. 31, the City Council approved a city budget with general revenue expenditures at $2,134,100. Revenues are forecast at $2,134,600, leaving a surplus of $500.

The Municipal Light and Power’s final figures predict total revenues from all departments at $5,822,800 and expenditures of $5,822,700. There is just a $100 surplus expected at the year’s end.

The city’s budget for 2025 is a little leaner in some area and more detailed.

“The No. 1 thing I was looking for was efficiency,” Griffin said. “We are shoring up some areas that need that. Reducing some costs in other areas. The idea is to make a more sustainable budget going forward.”

There was some good news for city employees and those employed through MLP. Both budgets included pay increases from 3 to 5 percent.

“First and foremost we need to take care of our people,” Griffin said. “We want to make this a desirable place where people want to work.”

The biggest undertaking in the city’s budget is a new city hall. The 2025 budget has $1.6 million set aside for the project.

According to the city administrator, bids will be sought soon on the project. He added he expects it to be a very competitive bidding market for the project.

Also the city budget includes $5,400,000 for the purchase of land. Griffin said the city is considering purchasing some 100 acres for economic development purposes.

With the success of the 2024 Music on the Mississippi event, which included a concert and food trucks, the budget has $100,000 in expenditures for a repeat performance. Griffin said the hope is to make the event sustainable.

There is an increased investment in the Fall Festival. The Twisted Cat Tournament now asks hosting cities to pay part of the hosting fees and $8,500 is set aside for 2025 to cover event costs.

No funds are budgeted in 2025 for street paving. However, Griffin said this year grants will be sought for any paving projects.

As part of an effort to make the budget sustainable, Griffin said he wants the city not to dip into the principle of the funds received from the sale of the power plant to Associated Electric Co. Initially the goal was to only use the interest from the funds for projects, however large projects such as the construction of a new substation drew on the principle.

“I don’t feel like those transfers are sustainable for the future. One of my goals for the city is not to have to dip into that to support the city’s budget,” Griffin said.

MLP budget includes rate increase

Like many household budgets, the Municipal Light and Power budget is facing higher expenses on day to day needs. As a result, Griffin said the Council is looking at a rate increase in 2025.

“Post-COVID, it is much more expensive to buy materials, transformers, wire, electric poles, everything that is required to run the Department. Some expenses have tripled,” Griffin said. “We were happy we didn’t have to do a rate increase in 2024, but we do need to do one in 2025.”

The only big ticket item slated for 2025 in the MLP budget is to replace the high service pump inside the water plant. The pump, which also serves as a back-up, is expected to cost about $22,500.

Griffin praised the staff’s work in preparing budget documents and the Council and the mayor’s time and effort to go through them.

He pointed out there were numerous documents to be reviewed by the Council and mayor in preparing the budgets. Many of those documents required multiple hours to review over multiple days.

“You can’t doubt their commitment and dedication. I have immense respect for them,” Griffin said. “They make hard decisions that are in the best interest of the community, strategic decisions, where the results may not be realized for years to come.”