MARC JACOBS
Hutch Post
Hutchinson city leaders are outlining the next steps after voters narrowly approved a sales tax increase earlier this month, a measure designed to support key city services and eliminate the stormwater utility fee.
Villegas said the first formal step will come at the Hutchinson City Council meeting on April 7, when staff plans to present a resolution establishing “guardrails” for how the sales tax revenue will be used.
The resolution is intended to ensure the money is spent according to the priorities presented to voters.
“If we were to deviate from how the funds were described — say moving money away from parks — we would have to explain that to the council,” Villegas said. “It’s about putting rules and transparency in place so we can honor what the voters approved.”
The revenue generated by the tax will flow into the city’s general fund, though the budget will designate portions of the money for specific purposes outlined during the campaign.
Stormwater fee to end in 2026
One of the most frequently asked questions from residents has been when the city’s stormwater utility fee will be removed.
Villegas said residents can expect the fee to disappear in October 2026, when the city begins receiving revenue from the new sales tax.
Cities do not immediately receive local sales tax proceeds from the state, he noted, which is why the change will not occur right away.
“The stormwater utility fee will fall off at the date of first collection of the new sales tax money,” Villegas said. “People often think that as soon as they make a purchase we see the money, but that’s not the case.”
Mayor Meggers said the election saw a higher turnout than many expected for a special election, though participation remained relatively low overall.
“I thought the turnout was a lot better than anticipated,” Meggers said. “But we still want to see more people participate in future elections so the results reflect the consensus of the entire community.”
Budget planning underway
With the vote settled, city officials are turning their attention to the next fiscal year budget process, which will take several months and include public meetings and workshops.
Villegas said the city plans to maintain a fiscally conservative approach even with the additional sales tax revenue.
“The sales tax passing doesn’t mean we stop being mindful of the budget,” he said. “We still have to be careful with how we spend public dollars.”
Among the city’s priorities moving forward are increasing investment in street maintenance and planning for major infrastructure needs, including improvements to the wastewater treatment facility.
Historically, Villegas said street maintenance has often been underfunded when budget cuts were necessary because it represents one of the largest portions of city spending.
City leaders are also continuing efforts to involve residents in long-term infrastructure planning through advisory groups such as the city’s parks advisory board. Officials are exploring the creation of a similar advisory body for public works projects.
Budget timeline
The Hutchinson budget must be finalized later this year, with the deadline depending on whether the city exceeds the state’s revenue-neutral rate.
If the city remains at revenue neutral, the budget deadline is August. If the city exceeds that threshold, the deadline moves to October.
Villegas noted that “revenue neutral” simply means the city is not requesting more property tax revenue than the previous year, though it does not account for inflation or rising costs.
“It doesn’t take into account the cost of materials and equipment going up,” he said, noting that the price of a fire truck increased by about $1 million between 2022 and 2025.
Despite those challenges, Villegas said the city’s financial plan — including the newly approved sales tax — should help maintain Hutchinson’s bond rating, which helps keep borrowing costs lower for large projects.
City officials say they encourage residents to continue attending council meetings and budget workshops as the process moves forward.