By NATE KING
Salina Post
At its regular Monday meeting, Salina City Commissioners approved the city's 2025 budget following a formal public hearing where citizens could voice their comments and concerns. The budget, totaling approximately $151.9 million, represents a 1.5% increase over the 2024 budget, which was set at $149.7 million.
Debbie Pack, Director of Finance and Administration, presented the budget to the commission, emphasizing that the public hearing was a required step under state law. Notices for the hearing were posted on the city's website and in Salina 311.
"The final numbers on the 2025 state budget forms levied the taxes at 29.294 mills, which is about .322 point three to two Mills, less than the current mill levy rate. This allocates approximately $15,423,400 in property tax to both the general fund and the bond and interest fund," Pack said. "This rate may be adjusted once Saline County certifies the total valuations on November 1. Total valuations for the 2025 budget increased slightly at 1.2%. Sales tax, which is approximately 33% of the general fund revenue, is budgeted to increase one and a half percent over the 2024 budgeted number. Property tax, which is approximately 22% of the general fund revenue, is being budgeted flat, at your direction, not to exceed the revenue-neutral rate."
City of Salina personnel costs, accounting for approximately 75% of total expenditures in the budget, include a 4% cost of living adjustment for city employees, effective January 1, 2025, and a maximum 3% merit increase.
The commission also approved adjustments to the comprehensive fee schedule, with increases ranging between 2% and 5%. Water and wastewater rates were also adjusted, with a 2.5% increase on the consumption side and a 20% increase in the monthly meter fee for water. The sewer side monthly fee remains unchanged.
Following the approval, the budget document is available for public viewing online on the city's website and at the city clerk's office. The 2025 budget, which includes 20 budgeted funds, will be finalized once Saline County certifies the total valuations on November 1.
When the time came for community input and questions, Salinan John Blanchard addressed commissioners with four questions regarding the funding and contingencies for the river renewal project, the impact of recent building permit fee waivers and tax abatements, whether the budget accounts for inflation about the proposed 4% COLA increase for employees and the City of Salina's multi-million dollar line item for the Former Schilling Air Force Base cleanup.
"On the second page of the staff report was a $50 million line item for SAFSAB, clean up. That's a $50 million line item," Blanchard said. "The latest 2022 audit showed a fund balance of $67 million in that in that fund. If I can get some clarification as to maybe what we expect expenditures to be this year, on the cleanup and on the years going forward."
Pack answered Blanchard's question.
"We have budgeted $50 million in anticipation of the majority of that funding is going to be spent in the first two years that they give get actively in the progression of doing work in that fund," Pack said. "From what I've heard from those project people, that's going to start here in the latter part of 2024 and go into 2025 and 2026."
Pack said about 70 to 75% of the funds will be spent in the first three years as those clean-up projects are built and implemented.
"As that stuff's put into place, then the remaining funds is just simply testing and looking and watching it over the next 20 or 30 years," Pack said.
Salina City Manager Mike Schrage the challenge of predicting sales tax revenue, noting that while the city has historically been conservative in its estimates, recent years have exceeded expectations.
"We've had a few years here where we've exceeded the revenues actually exceeded the budgeted amount, as Debbie indicated," Schrage said. "Trying to be conservative going forward, we are very watchful of kind of what performance looks like. And then we do think that we've got enough capacity accounted for, both in terms of conservative budgeting and fund balance."
Before making the motion to approve the 2025 Budget, Commissioner Mike Hoppock offered remarks on the city's current financial footing.
"Those of you that maybe haven't paid attention to the budgeting process, we've had numerous study sessions, and a lot of the questions that were asked have been addressed," Hoppock said. "I think staff and financially, the city's in a really good position, and we're trying to make sure we stay in that position for years to come."
Commissioner Trent Davis seconded the motion. Mayor Bill Longbine was absent from the meeting. Acting Mayor Vice-Mayor Greg Lenkiewicz called the roll call vote.
Commissioners approved the budget unanimously.