Tonganoxie adopts 2026 budget, sets property tax at 39.505 mills; library budget flagged for errors

The Tonganoxie City Council on Sept. 2 adopted the city's 2026 budget and set a property tax rate of 39.505 mills, exceeding the state'calculated revenue neutral rate of 38.185 mills. The action passed on a unanimous roll-call vote after public hearings yielded no speakers.

City Manager George Brekovich told the council the proposed budget balances continued infrastructure investment and tax relief: "we are proposing, following your lead, a at least a 1 mill reduction, which means over the course of the last 3 years, the city of Tonganoxie has reduced the city tax mill by 5 mills."

The revenue-neutral hearing and budget adoption matter because the adopted levy determines property-tax revenue the city can collect next year and how much of each tax dollar goes to the city. The 2026 package includes a half-mill reduction in the general fund levy, a quarter-mill reduction in the debt-service levy and combined reductions in the two library levies of about 0.515 mill, for a total mill-levy reduction of 1.265 mills compared with the prior year.

Most of the council's discussion was technical and staff-led. Porter (staff member) reviewed the state budget forms and explained the statutory constraint on changing published mill levies: by state law, once the city published its maximum mill levy and budget, the city cannot increase that levy later. The council then voted on Resolution 09-25-01, authorizing a property-tax rate that exceeds the revenue neutral rate under KSA 79-29-88. Councilmember Donnelly moved the resolution; Councilmember Dale seconded. The roll-call vote was recorded as unanimous in favor.

Councilmembers also raised concerns about the Tonganoxie Public Library's revised budget submission. Staff reported the library submitted a revised budget Aug. 18 that reduced a benefits mill levy component by approximately $25,000 and reflected a planned use of reserves; staff said the library's starting operations fund balance was about $100,000. Staff told council that the library's earlier presentation had moved some items into operations that legally belong in the benefits fund; staff advised the library that the benefit mill cannot legally be used to make direct employee payments. Staff also said the library's published mill levy for operations (5.276 mills) exceeded the city's published maximum (5.099 mills) and therefore cannot be adopted at a higher amount this year because of publication timing and state notice requirements. Councilmembers noted the library's revised figures showed a small shortfall (staff cited roughly $4,677) and that the library may need to use reserves or adjust its 2027 budget if the shortfall remains.

The adopted budget package includes the city's general fund revenue and expenditure plan (the general fund was described as roughly 50% property-tax funded and 21% sales-tax funded), utility fund project funding, and capital and debt-service schedules. Staff highlighted a planned reduction in general fund fund balance of about $642,000 within the proposal, and noted a State Revolving Fund (SRF) loan of about $5 million is approved but not yet drawn for wastewater treatment plant work.

On a practical level for residents, staff presented example tax-bill scenarios showing that, depending on reappraisals, many homeowners could see little change or modest changes in total tax bills because of the combined mill-levy reductions and assessed-valuation changes the county is sending to taxpayers.

The council adopted the 2026 proposed budget by roll-call vote (motion to adopt by Councilmember Dale; second by Councilmember Stevens with an additional second acknowledged from Councilmember Partridge). The city will deliver the adopted budget certificate to the Leavenworth County clerk as required and will publish a public budget book with detailed schedules.

Discussion versus decision: staff presented and council discussed budget structure, mill-levy calculations, library schedule and legal constraints; the council's formal decisions were (1) to adopt Resolution 09-25-01 to exceed the revenue neutral rate and (2) to adopt the 2026 budget as published (both recorded by roll call as unanimous). Staff noted additional follow-up with the library on presentation format and legal classification of benefit funds; no formal vote on library-specific remedies occurred at the meeting.

What to watch next: staff will finalize and file the budget documents with the county clerk, produce the public budget book, and continue discussions with the library board and staff on the revised budget presentation and any corrective steps for 2027.