Herculaneum Receives Clean Audit, Approves Street Work and Three-Year Firefighter Agreement

City officials reported growing reserves and stronger revenue as the Board of Aldermen also advanced paving projects, approved a new labor agreement, and received updates on storm sirens, roadwork, and development.

By The Jefferson Review Staff

HERCULANEUM, Mo. — Herculaneum closed fiscal year 2025 with a clean independent audit, increased fund balances, and no reported financial statement findings, according to a report presented to the Board of Aldermen.

During the same meeting, the board approved a contract for the city’s 2026 asphalt street improvement project and a three-year collective bargaining agreement with the city’s firefighters.

Audit Finds No Material Weaknesses

The city’s independent auditor issued what was described during the presentation as an unqualified, or clean, opinion on Herculaneum’s fiscal year 2025 financial statements.

The audit did not identify any material weaknesses or deficiencies in the city’s internal controls. The auditor also reported no compliance findings related to the matters examined as part of the audit.

Herculaneum ended the fiscal year with total fund balances of approximately $6.3 million, compared with approximately $5.5 million the previous year.

Mayor Ryan Wright said in a follow-up interview with The Jefferson Review that the audit is conducted annually and provides residents with an independent review of how the city manages public money.

Wright said the city added approximately $530,000 to its reserves during the year. He also said overall revenue increased by approximately $800,000 compared with the city’s budget projections.

The return of revenue from the city’s voter-approved sewer sales tax helped Herculaneum bring in approximately $1 million more than it did during the previous year, according to Wright.

“The city’s doing really good financially,” Wright said. “Our reserves are increasing, and so is our revenue.”

Wright said the audit also confirmed that money restricted for particular purposes was spent as intended. As an example, he pointed to Proposition P revenue designated for public safety expenses involving the police and fire departments.

“All of the sales tax that we have, or money that is supposed to be spent for certain things, is being spent where it is supposed to be,” Wright said. “We’re not misallocating any funds.”

The mayor credited city employees who maintained the financial records and gathered the extensive documentation requested by the auditors.

“We’re being wise with their money, and everything’s accounted for,” Wright said. “We’re making sure we’re not in a bad financial situation.”

City Selects New Auditor for Next Year

Although the audit produced a clean financial report, its completion came later than city officials expected.

Wright said the firm that had worked with Herculaneum for approximately 14 years was recently purchased by another company. The transition contributed to the city receiving its audit results in August rather than around May, when the process has typically been completed.

The city subsequently sought bids from other firms and selected a different auditor for the next fiscal year.

According to Wright, the new firm’s proposal was approximately $12,000 less than the city’s previous auditing cost.

The mayor said the decision was based on both the potential savings and the city’s desire for a smoother, more efficient process.

“When we do get audited, a lot of our staff, our city clerks, our deputy clerks, and everybody has to work hard to get them all the documents that they need,” Wright said. “Having a better audit firm and a smoother process is really going to help us out in the future with our staff.”

City accounting staff told the board that they had worked with the incoming firm previously and expected fewer repeated document requests and delays.

The Board of Aldermen voted unanimously to accept the fiscal year 2025 audit report.

Three Streets Included in Asphalt Project

The board also unanimously approved a contract with Jokerst Paving & Contracting for Herculaneum’s 2026 asphalt street improvement project.

The work will include Mississippi Avenue, Wall Street, and Grove Street.

Before the vote, one alderman asked that future meeting packets include the contractor’s complete bid breakdown rather than only the total amount or final contract.

City officials agreed that more detailed bid information should be included for the board’s review in the future.

Three-Year Firefighter Agreement Approved

A new three-year collective bargaining agreement with the city’s firefighters also received unanimous approval.

City officials said most of the agreement continues provisions that were previously negotiated, with several additions and revisions involving the pay scale and how prior experience may be recognized.

One added provision gives city and fire department leadership the ability to provide eligible firefighters with credit toward the pay scale for previous years of relevant service, including volunteer experience. Those determinations will be reviewed individually under the terms of the agreement.

Officials said the three-year term will reduce how frequently city staff, attorneys, department leadership, and union representatives must conduct the lengthy negotiation process.

The agreement was developed through several months of discussions involving Fire Chief Kevin Baker, city staff, the city attorney, and union representatives.

Board members also asked about binding arbitration and compensatory time provisions.

City officials explained that the fire department currently pays overtime rather than issuing compensatory time because staffing levels make it difficult to allow employees to take accumulated time away from their shifts.

The city attorney told the board that he had reviewed the agreement and had no legal objections.

Following the vote, Wright thanked the employees, department leadership, attorneys, and union representatives who worked on the agreement.

Storm Sirens Fail Scheduled Test

Police Chief Sharia Kyle reported that the city’s outdoor warning sirens did not operate during their scheduled test.

The city contacted Outdoor Warning Systems, which was expected to coordinate with Jefferson County officials to determine whether the failure originated within the county’s activation system or with Herculaneum’s siren equipment.

Kyle also reported that the Police Department’s new Dodge Durango was expected to be sent out for striping. Once the remaining equipment is installed, the vehicle will be placed into service.

Road and Construction Projects Continue

Public Works Director Mark Johnson reported that work in the Westchester subdivision had been completed. Crews had moved into the Prairies subdivision, where they were removing and replacing sections of concrete.

City officials also discussed the condition of Industrial Drive and McNutt School Road. Wright said the city is considering how to address the larger area during future budget cycles.

Officials said completing the entire project at once could be difficult financially, but dividing the work into too many smaller sections could affect the quality and consistency of the finished roadway.

The city recently replaced two concrete slabs, including work near the intersection with McNutt School Road, which officials described as one of the area’s worst sections.

Road improvements were also underway in the Providence and Stonewater developments, with city inspectors reviewing work as requested.

McDonald’s Renovation Back on Schedule

Building officials reported that renovation work at the Herculaneum McDonald’s was moving forward and had recovered from delays encountered earlier in the project.

Wall framing was expected to begin, allowing crews to proceed with exterior façade and insulation work.

Although an exact completion date had not been provided, officials estimated that the restaurant could reopen in approximately two months, potentially before Thanksgiving.

The Building Department also reported that work was beginning on an apartment development along McNutt School Road. Preliminary elevation work had been completed, and additional building permits were expected to be issued as the project advanced.

Fire Department and StoryWalk Celebrated

Fire Chief Kevin Baker thanked residents and city departments for supporting the Herculaneum Fire Department’s 75th anniversary water parade.

Officials said the first-time event received a strong community response, with assistance from Public Works, the Police Department, volunteer firefighters, and paid fire personnel.

Board members also recognized the opening of the new StoryWalk trail created through a partnership involving the library and the Ozark Outdoor Foundation.

The outdoor attraction places pages from a children’s book along a walking route, allowing families to read the story as they travel the trail. City officials said an additional directional sign is expected to be installed to help visitors follow the route.

The board later closed its open session to discuss litigation and personnel matters.