Newton staff asks commissioners to exceed revenue-neutral rate, commissioners signal support for 60th-percentile pay plan

City staff presented the draft 2026 budget and long-range bond projections to the Newton City Commission and asked commissioners to give early direction to exceed the county clerk's revenue-neutral rate to capture roughly $610,413 in additional property tax revenue.

The request was framed as a staff action item at the end of a presentation on the bond and interest fund, capital improvement program (CIP) and the draft budget. Donna (Finance director) asked the commission directly: "What we need from you is a consensus to exceed the revenue neutral rate so we can have that form and have you fill it out and vote on it on July 8." Rebecca (city staff) said staff also needed a clear direction on how to implement the salary study recommendation.

The revenue-neutral rate the county clerk calculated for 2026 is 68.82 mills. Staff proposed keeping the city

current combined mill levy at 72.223 and using the additional $610,413 in 2026 to fund personnel and reserve needs. Donna provided the valuation figures staff used in the estimate: a July 1, 2025 assessed valuation of $181,170,521, adjusted for TIF to about $179,000,000…