State audit of Salem finances begins; cost estimated at up to $125,000
Published 5:00 am Tuesday, July 21, 2026
The Missouri State Auditor’s Office has begun its audit of the City of Salem’s finances, a process expected to continue for the next several months and cost the city an estimated $80,000 to $125,000.
Chris Vetter, an audit manager with the state auditor’s office, updated the Salem Board of Aldermen during its regular meeting Tuesday, July 14.
Vetter said the audit will focus primarily on Fiscal Year 2026, though auditors may examine records from earlier years at their discretion. He emphasized that information gathered during the audit will remain confidential until the final report is released.
The audit follows a petition-driven request for a state review of city finances.
Finance Director Stacey Houston later reported that the city collected approximately $4.9 million in sales tax revenue during Fiscal Year 2026 across the General Fund, Parks and Recreation Fund and Capital Improvement Fund. The total represented an increase of approximately 2.7%.
Houston said the city received 91% of its budgeted revenue and spent 84% of its budgeted expenditures during the fiscal year. The combined ending balance of all city funds was approximately $17.4 million.
The board also approved extending an interim bond with Town & Country Bank through July 1, 2027. The bond is being used to finance engineering and design costs for Phase 2B of the city’s Wastewater Treatment Plant Improvement Project.
City Administrator Sally Burbridge said construction plans, designs and permit documents for the project were submitted to the Missouri Department of Natural Resources in March 2025 but have not yet been approved.
Burbridge attributed the delay to staffing shortages at the department and the volume of projects funded through the American Rescue Plan Act.
The board approved both the first and second readings of the ordinance extending the bond.
Aldermen also approved several other second readings, including a change order for the Salem Water System Improvements project and multiple ordinances establishing rates for electric service.
Public Works Director Steve Paine received approval for two purchases. The first was a replacement remote for the city’s vacuum truck at a cost of $5,413.60.
The second purchase included meters, antennas and supporting hardware from NexGrid at a cost of $26,875.92.
In other business, the board approved Sue Hubbs to serve a new four-year term on the Housing Authority Board of Commissioners.
During public comments, Salem resident Dylan McGinnis raised concerns about a trailer court under construction on Center Street, saying he had not observed additional progress at the site. McGinnis also expressed frustration with the conduct of members of the board on social media.
Following reports from city officials, the board entered closed session to discuss real estate and litigation matters.
The next regular meeting of the Salem Board of Aldermen is scheduled for Tuesday, July 28. The meeting is open to the public.
