MARC JACOBS
Hutch Post
HUTCHINSON, Kan. — A revised 2027 budget presented to the Hutchinson City Council would raise the city’s projected general fund balance to more than $4 million while maintaining a flat mill levy.
The council revisited the budget after declining to approve it following a Sept. 1 public hearing. Council members later held a study session to address concerns about the city’s reserves, staffing and proposed expenditures.
Finance Director Angela Richard said the city had previously projected ending 2027 with approximately $1.3 million in the general fund, slightly more than half a month of expenses. The latest proposal increases that balance to approximately $4.057 million.
The city’s recommended general fund balance is about $7.3 million.
“This is a significant move in the right direction, but we probably still have work to continue in future years,” Richard said.
The proposed mill levy remains unchanged at 42.095 mills. However, higher property valuations would mean an estimated annual increase of $13.23 for a $100,000 home, $52.90 for a $400,000 home and $287.50 for a $1 million commercial property.
Several changes were made following the council’s budget study session. The city removed approximately $2.2 million in anticipated revenue and expenses associated with the proposed city-operated fixed-base operation at Hutchinson Regional Airport. Some other FBO-related expenses were also removed, while $35,000 was restored for a zero-turn mower at the airport.
The revised budget reduces proposed employee raises by 1%, saving the general fund approximately $92,000. The proposal includes a 2% cost-of-living adjustment and an average 2.25% merit increase. Richard cautioned that union negotiations remain underway and could affect the final figures.
The city also removed a proposed assistant city attorney position and replaced it with $80,000 for contractual legal services. The change is expected to save approximately $83,000 while giving the city’s next attorney flexibility to obtain additional assistance.
Engineering staffing was restored in the revised budget, including two construction technicians, a general fund project manager and another project manager whose expenses would be divided between water and sewer operations. The positions will cost the general fund approximately $276,000.
Council members said the additional staff could help advance delayed projects and reduce the city’s reliance on outside engineering firms.
The city also proposes delaying the bike park addition until 2028 and deferring part of the golf course master plan, reducing planned capital spending and borrowing.
A significant portion of the improved reserve balance comes from changing how the city plans to use revenue from its new sales tax. Rather than creating a separate sales tax-supported stormwater fund in 2027, the city would use money remaining from the former stormwater utility fee to cover stormwater operations.
Approximately $2.2 million would be drawn from the old stormwater fund, leaving slightly less than $5 million. Richard said the arrangement is not a long-term solution.
The revised plan directs approximately $1.96 million to the general fund to help support parks operations and improve reserves. Another $200,000 would be used for brick streets and pavement markings.
Council member Stacy Goss praised the work that increased the projected reserves but noted that the city remains below its target.
“I think that’s phenomenal,” Goss said. “I know we’re still not hitting our target at $4.057 million, but that is a lot better.”
Goss also raised concerns about city employees affected by wage compression. Staff members said the issue could be reviewed internally with the Human Resources Department and Interim City Manager Gary Meagher without requiring a formal budget amendment.
Council members also discussed restoring approximately $100,000 for a security fence around the Hutchinson Law Enforcement Center parking area. Supporters said the fence would improve security for dispatchers, police officers and patrol vehicles.
The 2027 budget including the fencing for the law enforcement center parking area was approved unanimously by the city council.