HUTCHINSON, Kan. — The Revenue Neutral Rate and budget hearings for the City of Hutchinson were held Tuesday.
City Manager Gary Meagher met with department heads earlier this year and they were able to find more than $1.2 million in cuts to close out 2022 and for 2023.
They include holding some open positions vacant in the police department saving about $493,000, cutting $238,000 from the motor and equipment reserve fund, and making another $245,000 in cuts in department operating expenses. It also includes more than $224,000 in cuts to the street department.
The city made the cuts to keep the mill levy at 41.556 mills. The cuts offset a 7% increase in valuations for 2023 and will, if nothing else changes, keep the budget at revenue neutral for the coming year.
There was some pushback from the local SEIU representation that holding the line on revenue neutrality would not leave them enough money for raises to keep up with inflation, but ultimately, the council voted unanimously to pass the budget.
The city held the Revenue Neutral Rate hearing and passed an exceeding resolution just in case an emergency event or a miscalculation by another agency would inadvertently push them above a flat actual collection, because if that happened and they didn't hold the hearing, they would have to give the excess back.
The city budget also includes the Hutchinson Recreation Commission budget with a 2023 mill levy rate of 3.613, which is above revenue neutral for them, but they have held the required hearings.
Since the budget was discussed, the opioid fund was added, because there was some money passed down from the state. Police department salaries were increased by $24,262 for the FOP negotiations and a $2 million transfer happened from the stormwater fund to the CIP fund to pay for the Mine Road project. Estimated costs on that are about $1.9 million.
The budget as passed is the most that can be spent by the city, but they can always spend less if they can find areas to save as the year goes along.