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Hays City public hearing: resolution to exceed revenue-neutral rate dies; commission adopts 2026 budget at revenue-neutral rate
Summary
After public comment urging tax relief, a proposed resolution to exceed the revenue-neutral rate died for lack of motion; the commission then approved the 2026 budget adopting a revenue-neutral mill levy of 24.382, producing an estimated $194,808 cash adjustment.
The Hays City Commission on Sept. 11 conducted public hearings on the city's intent to exceed the revenue-neutral rate and on the proposed 2026 budget. A resolution to exceed the revenue-neutral rate died for lack of a motion following the public hearing; later the commission approved the 2026 budget as amended at a revenue-neutral mill levy of 24.382.
Deputy City Manager Colin Belzer explained that changes in bond timing and a lower-than-expected interest cost after issuing a temporary note created a cash carryover of $194,808, making it possible to meet the state's revenue-neutral calculation and lower the mill levy from the budget's earlier projection. "That interest payment does not need to happen, and the interest coupons line item ... can be lowered to achieve the revenue neutral rate of 24.382," Belzer told the commission.
Two residents who spoke during the public hearing urged the commission to remain revenue neutral. David Vlising of 1607 Fourth Street said, "I hope that you take this advantage and stay revenue neutral. . . . They are heavily taxed and they're burdened right now." David Koshel of 313 East 204th Street also urged the commission to pursue the revenue-neutral option, noting recent tax increases by other taxing entities.
After public comment, the commission sought a motion on Resolution No. 2025-020, which would have authorized exceeding the revenue-neutral rate; due to a lack of motion the resolution "died for lack of a motion," the presiding official said. The commission then closed the public hearing and proceeded to the budget action.
Belzer presented the proposed 2026 budget as balanced and largely cautious in approach. Key figures and projects presented at the hearing included an estimated general fund revenue of just under $18.5 million; a projected 2% increase in sales tax revenue for 2026; an assessed valuation increase of 2.5%; a planned transfer to commission capital reserve of about $2.8 million; a $1.55 million set-aside for HVAC upgrades at City Hall, parks and public works; and a $350,000 terminal planning study for the airport. Belzer said the city's 2024 pull factor was 1.66, ranking Hays among the top in the state for retail draw.
Commissioner Rooter moved to approve the 2026 budget for the City of Hays "as amended with the revenue neutral rate of 24.382"; Commissioner Barrack seconded. The motion passed on a 5-0 vote.
Belzer and commissioners highlighted that the adopted budget does not require raising the mill levy above the revenue-neutral threshold and that the city expects to continue funding capital projects largely through cash reserves rather than new debt. The commission also noted that the public safety levy remains constrained by state statute and that airport equipment purchases include a federal cost-share for a planned snow broom.
Votes at a glance: Resolution No. 2025-020 (resolution to exceed revenue-neutral rate) — no motion; item died. 2026 Budget adoption — motion to approve the 2026 budget as amended with the revenue-neutral rate of 24.382 moved by Commissioner Rooter, seconded by Commissioner Barrack; outcome: approved 5-0.
