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Gardner council adopts 2026 budget, approves mill levy above stateneutral rate
Summary
The Gardner City Council adopted its fiscal year 2026 budget and a resolution to exceed the state-calculated revenue neutral property tax rate, approving a mill levy of 18.172 mills and ordinances tied to the budget after public hearings and council debate over tax relief and future fiscal sustainability.
The Gardner City Council adopted the fiscal year 2026 budget and a resolution approving a property tax rate that exceeds the Johnson Countycalculated revenue neutral rate, the city announced during its meeting.
Finance Director Wolf told the council that Johnson County calculated Gardner's revenue neutral rate as 16.959 mills and that the city's proposed mill levy for FY2026 is 18.172 mills, which exceeds that rate. Wolf also summarized key elements of the budget, including targeted reserves, a projected general fund ending balance of about 33% of expenditures, a planned 4.7% water rate increase and a 4.2% wastewater rate increase to support water infrastructure and the Kill Creek Water Resource Recovery Facility expansion.
Council discussion before the vote focused on whether the city should seek short-term tax relief amid rising countywide property tax burdens versus preserving long-term fiscal stability and bond rating. Multiple council members urged caution about reducing revenue now because staff analysis presented a multi-year projection showing structural deficits without projected growth; others urged exploring cuts or limiting spending to provide relief to residents on fixed incomes.
After public hearings with no members of the public speaking on the revenue-neutral-rate item and the budget hearing, the council moved and seconded the resolution and ordinance and voted to adopt them. The council adopted resolution 2179 to exceed the revenue neutral rate and passed Ordinance 2847 adopting the 2026 budget.
The budget package as approved includes the 18.172 mills levy, the water and wastewater rate increases referenced by staff, and projected reserves intended to maintain a roughly 33% general fund balance. Finance staff recommended adoption. The council recorded the adoption and closed the public hearings before voting.
Council members asked staff to continue monitoring revenue performance and to return with options if growth revenues fall short of assumptions; the council also discussed enforcement options and longer-term structural changes but took no additional directives at the meeting.
The ordinance and resolution become part of the city's adopted FY2026 financial plan; implementation details such as water rate ordinance language and effective dates will be reflected in the final adopted documents and subsequent utility billing notices.
