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Newton commission signals intent to exceed revenue-neutral rate; staff to notify county clerk
Summary
Commissioners voted to notify the county clerk of the city's intent to exceed the revenue neutral rate and discussed the 2026 budget, senior center funding request and how assessed valuation changes affect mill levy calculations.
Newton commissioners voted to notify the Harvey County clerk that the city intends to exceed the revenue-neutral rate and continued discussion of the 2026 budget, including a supplemental funding request from the senior center.
During a presentation on the 2026 budget, staff reviewed how assessed valuation changes affect the mill levy and municipal revenue. Staff explained the mechanics of the revenue-neutral rate (RNR) and described why the commission had chosen to stay above the RNR: an August/November valuation decline in recent years can reduce revenue if the city simply relied on the RNR calculated from prior valuations. Staff showed an example of a $75,000 home rising from $1,540 in 2024 taxes to roughly $1,600 with a 4.5% increase, and clarified that those illustrative figures assume other taxing entities keep their mill levies constant.
Commissioners asked for a 15-year lookback on tax abatements for economic development projects; staff said they would provide a detailed schedule. The budget presentation also noted potential revenue options that would require additional study, including a public safety sales tax and an intangible tax; staff said those would need more preparation before being presented.
On the formal item, staff said Harvey County notified the city that its revenue-neutral rate would be 68.82 mills and that the commission had previously instructed staff to prepare paperwork notifying the county of the city's intent to exceed that rate. Commissioners then moved and approved a motion to notify the county clerk of the city's intent to exceed the revenue-neutral rate and to maintain the current mill levy at 72.223 mills; staff said that action would capture about $610,000 across five funds (library, special liability, bond and interest, airport, and general) and represents a 4.95% increase over the November valuation.
Commissioners also discussed a $20,000 funding request from the senior center. Staff reported the senior center had been paid $5,000 from the city’s economic development (EcoDivo) fund in the current year; the current request was for $20,000 to supplement the senior center's budget. Commissioners expressed support for funding at the $20,000 level and noted the city’s economic development fund balance was projected to end the year around $2 million; there was no formal roll-call motion in the transcript to appropriate the $20,000 at this meeting.
Staff said they would continue to solicit public input for budget priorities and noted that some items might be considered through the comprehensive planning process.
