Junction City finance staff on Tuesday walked commissioners through the draft revenue side of the 2026 budget and explained why reported sales-tax receipts exceed the amount shown in the general fund.

The presentation, led by Jamelle (staff), explained that roughly $14 million in total sales-tax collections are split among several funds: about $7.4 million is budgeted to the general fund, roughly $5.5 million goes to debt service and smaller amounts go to CID and other line items. Jamelle said the split “is why people look at the state reporting and say you’re underbudgeting; you’re not,” and asked commissioners to focus on the fund-level breakdown rather than the headline collections figure.

The discussion matters because commission decisions about service levels and appropriations depend on accurate, conservative revenue estimates. Commissioners pressed staff on several line items, including the use tax (online purchases), building-code revenues and reimbursements, and on how utility and debt payments are scheduled.

Staff emphasized the following points: total city sales-tax collections are higher than the general-fund amount shown because sales tax is divided among bonds and debt-service funds; the budgeter used five-year averages to smooth projections; and the city had already drawn $8,000,000 from a state loan for wastewater treatment plant upgrades.

Jamelle told the commission that the draft budget proposes roughly $7.4 million in general-fund sales-tax revenue for the coming year, with an additional $4.6 million to the city-sales-tax portion and about $900,000 to bond debt-service. He said use tax (online purchases) is projected at about $1.9 million and noted the city has historically seen growth in those receipts. Still, he recommended caution. Commissioner Gutierrez asked about the use-tax assumption and whether projected departures of soldiers from the local military installation would reduce spending; Jamelle replied that departures could dent local spending and advised conservative assumptions.

Other specifics discussed during the presentation included:
- A suggested correction to a building-codes line item: Jamelle acknowledged the line showed $10,000 but said it should be $100,000 based on current collections (about $97,000 midyear).
- Park and recreation revenue adjustments: pool revenue was lowered from a budgeted $100,000 to a more attainable $30,000 based on recent year averages; Spin City and golf revenues were adjusted upward based on five-year trends and recent tournament activity.
- Utility funds: staff noted a water-rate increase implemented last December and said tap/connection fees were adjusted to align with five-year patterns. Staff also reported late fees appear in activity but are not budgeted revenue lines.
- Loans and debt: staff listed outstanding program and debt payments, saying the city had roughly $32,000,000 available on a KDHE (Kansas Department of Health and Environment) revolving loan and had pulled $8,000,000 this year for wastewater work. Staff also reviewed GO bond and KDOT revolving-loan payments and how portions of wastewater debt are split between the debt-service fund and the wastewater utility.
- Reimbursements and miscellaneous lines: staff explained reimbursements (for example, IT licensing for Grandview Plaza support) are budgeted in operating lines and then offset by reimbursement revenue; miscellaneous revenues are not always budgeted because amounts are uncertain.

Commissioners and staff also raised contract- and rate-related items: one commissioner asked whether Grandview Plaza pays the same water rate as residents; staff said a discount in the existing contract dates to about 2010 and would require renegotiation. Jamelle offered to follow up by emailing detailed transaction lists and promised to correct line-item errors identified during the meeting.

Votes at a glance
- Motion to adjourn — moved by an unnamed member, seconded by an unnamed member; outcome: approved by voice vote (ayes recorded). The budget presentation produced questions and directions but no final adoption action during this session.

The presentation and follow-up discussion produced several small data corrections and staff follow-up tasks rather than formal policy changes. Jamelle said the commission would receive a finalized digital budget book after adoption and offered printed copies of the working materials for commissioners who prefer paper.