By Lucky Kidd
HUTCHINSON, Kan. — The Hutchinson City Council held hearings Tuesday morning on the city’s 2025 budget that keeps the city’s property tax levy the same as for 2024 at 40.329 mills. The levy will be just under two mills higher than the Revenue Neutral Rate, which a hearing was also held on, which would raise the same tax dollars as for 2024, increasing property tax revenue for the city by just over 2.1 million dollars. After that hearing the Council approved the resolution to exceed RNR.
One citizen spoke during the hearing, concerned about the impact of exceeding the Revenue Neutral Rate on those on fixed incomes.
Council member Jon Richardson addressed a frequent concern he hears is that the city of Hutchinson has one of the highest if not the highest property tax rate in Kansas, which he said is not true. He compared Hutchinson’s levy to that of other area communities, and said tax levies in McPherson, Newton, Lyons, Derby, Maize and Pratt are higher than Hutchinson, with Hesston slightly less and Wichita, which has substantial sales tax revenue enabling a lower mill levy.
Richardson said the city in the past 2-3 years has done a lot of work to trim things, but like everyone else has been fighting inflationary pressure, including a need to keep wages for employees competitive in order to retain and recruit a quality workforce.
Finance Director Angela Richard noted sales tax and franchise revenue is also declining. Local taxpayers will be getting a bit of a break Oct.1, when a .35% sales tax that funded the Sports Arena renovation expires. Richard also said City Manager Enrico Villegas has asked her to look at ways to help those on fixed incomes, especially senior citizens.
During the budget hearing, Richard noted based on current trends, the city is projected to end 2025 with a cash balance of $905,000, which is much less than the $7 million or so the city is recommended to have.
The bond and interest levy will go down slightly and on its own would have been revenue neutral, but the general fund levy was increased. The City’s property tax levy also includes that of the Hutchinson Recreation Commission, which has already held their required budget and RNR hearing.
