McPHERSON, Kan. — The McPherson City Commission Tuesday approved the city’s 2026 budget and to exceed the Revenue Neutral Rate for that budget. As we reported earlier, the city’s mill levy will remain at the 2025 level of 53.238 mills, which will be not quite 1.2 mills over the levy rate that would raise the same property tax dollars as for 2025, generating an additional $279,000 in revenue.
Two people did speak during the hearing, one of whom, Carol Smith, discussed significant increases in property valuations. “My tax rate has increased 41 percent, so to me being even is not even because i’m reflecting a 41 percent increase over two years,” Smith explained. It was pointed out valuations on property are set by the county based on guidance from the Kansas Department of Revenue. Richard Luthi also spoke, and his comments dealt with questions related to procedural matters connected with RNR.
Finance Director Richard Miller in presenting the budget itself said it reflects priorities set out in the city’s strategic plan, which has specific achievable and measurable goals. “It is ultimately the City Commission’s intention that by investing in our residents and local businesses, improving operational readiness, investing in professional development, improving financial transparency and growing relationships that we can inspire to grow our community,” he explained.
Miller also discussed cash reserves the city has set aside, including between 2,5 and $3 million as a cash carryover that would be available in an emergency situation such as a natural disaster.
Mayor Tom Brown said this is also related to delays that are a fact of life when it comes to FEMA reimbursements. These funds enable the city to immediately respond in a disaster situation, from which it could take between two and three years to get FEMA reimbursements.
In wrapping up the final budget hearing of his 16 years as mayor, he also noted if an ambulance sales tax County Commissioners have placed on the November ballot passes, it would enable the city to reduce its levy rate by about 2 ½ mills.
