MARC JACOBS
Hutch Post
HUTCHINSON, Kan. — The Hutchinson City Council reached a consensus Thursday on several changes to the proposed 2027 budget that are expected to increase the city’s projected general fund balance to at least $1.2 million without raising the mill levy.
Council members reviewed employee raises, staffing, airport operations and capital projects during a budget study session. The revised budget is expected to return for consideration Tuesday.
Finance Director Angela Richard said the city’s mill levy would remain flat under the proposed changes.
One of the largest revisions involves the city’s plan to take over fixed-base operator fueling services at Hutchinson Regional Airport after its agreement with Wells Aircraft expires in 2027.
Richard said staff decided not to proceed with the proposed operation. Removing it would reduce projected airport revenue by $2.2 million, operating expenses by $2 million, salaries by $216,000 and equipment funding by $160,000.
The net benefit to the general fund would be approximately $176,000. The airport’s total expenditures would return to about $769,000.
Council members supported filling a vacant airport maintenance position and retaining funding for equipment, including a tractor and several mowers.
Airport Director Alek Stang said two employees currently maintain approximately 1,300 acres, more than three miles of runway, six miles of fencing and about 180 acres of woodland.
“I think that we’re running on fumes out there,” Stang said.
The council also reached a consensus on reducing the average employee pay increase from 5.5% to 4.5%. The revised proposal would provide employees with a 2.5% cost-of-living adjustment and an average 2% merit increase.
The original budget included a 2% cost-of-living adjustment and an average 3.5% merit increase.
Richard said salaries typically consume about 70% of the general fund. She warned that continuing raises at the higher level could eventually require the city to increase the mill levy, reduce services or eliminate positions.
Reducing the average increase by one percentage point could eventually save the general fund approximately $264,000 annually, although the full savings would not be realized during 2027 because merit raises take effect on employee anniversary dates.
The city is continuing negotiations with its employee unions. Mayor Scott Meggers opened the meeting by acknowledging that several union contracts remain unresolved.
“Our union employees deserve clarity and resolutions, and we do not take the delay lightly,” Meggers said. “We are committed to working through the remaining issues in good faith and moving toward resolution without unnecessary delay.”
The council later supported eliminating the assistant city attorney position, which would cost approximately $163,000 with benefits and allowances. The budget would retain $80,000 for outside legal services, producing estimated net savings of $83,000.
The proposed budget also would redirect some new sales-tax revenue initially intended for a separate stormwater fund to eligible street, park and golf course expenses. The move would reduce pressure on the general fund and help rebuild city reserves.
Council members identified rebuilding the reserve as a priority because it affects the city’s bond rating and ability to respond to emergencies.
The council supported increasing pavement-marking funding from $150,000 to $250,000. Public Works Director Cecil Weible said the city has fallen behind on street striping and plans to use longer-lasting thermoplastic markings containing reflective glass beads.
Weible estimated that $150,000 could complete markings comparable to those on Main Street from Fourth Avenue to 30th Avenue, including parking stalls.
The city plans to use contractors initially while preparing to bring more striping work in-house.
Council members also supported restoring two construction technician positions previously removed from the proposed budget. The positions would cost approximately $172,000, but utilities would pay about $103,000, leaving a net general fund cost of roughly $68,000.
The council discussed adding two project managers, one for utilities and another for general public works projects. Staff said expanding the city’s engineering capacity could reduce reliance on outside contractors and accelerate infrastructure projects.
The proposed purchase of a $600,000 asphalt paver and distributor truck also remained in the budget. Weible said renting similar equipment for a full season could cost more than $100,000.
The equipment would allow employees to complete residential street overlays, parking-lot projects and repairs to the Jim P. Martinez Trail. Parks and Facilities Director Justin Combs said the anticipated purchase already allowed the city to reduce the projected costs of two capital projects by a combined $350,000.
Council members agreed to delay the proposed $260,000 second phase of the Carey Park bike park for one year. Because the project would have been financed through bonds, delaying it will not directly improve the 2027 general fund balance.
The council also reduced funding for the Carey Park Golf Course Master Plan from $660,000 to $330,000. The change will delay the remaining phase of work on holes 10, 11 and 12 by approximately one year.
However, council members agreed to leave the proposed Carey Park water-reuse project in the budget, allowing staff to continue applying for grants and a state revolving fund loan.
Utilities Director David Guinn said the approximately $14 million project could have an estimated net cost of roughly $5 million after grants, loan forgiveness and savings from reduced treated-water use.
The project would deliver reclaimed water to irrigate the golf course and other portions of Carey Park. Officials estimated the park uses approximately 400,000 to 450,000 gallons of treated water per day during peak summer demand.
Guinn said the project would not use general fund money, reduce funding for neighborhood water projects or provide water to a potential data center.
Council members would have additional opportunities to approve or reject the project before the city accepts any loans or grants.