Junction City adopts 2026 budget after contentious debate over raises and outside grants

The Junction City Commission voted to adopt the city’s 2026 budget after a lengthy debate over staff pay increases, outside funding requests and the feasibility of a mill‑levy reduction.

Commissioners spent the bulk of the discussion weighing a proposed 6% across‑the‑board pay increase for nonunion employees against requests from outside organizations — including the EDC, Main Street and MAC — and one commissioner’s push to cut the mill levy by three mills. Finance staff warned that state publication and hearing deadlines limit the commission’s ability to enact a different tax rate without another public hearing.

The budget debate focused on priorities for limited revenue. One commissioner argued for compressing the proposed percentage increases into a flatter, staff‑focused raise to help lower‑paid workers, while others urged preserving the proposed increases to retain and recruit employees after years of smaller raises. The finance director told the commission the publishing schedule required another hearing before any mill‑levy change could legally be adopted.

After discussing alternatives and possible amendments, a majority voted to adopt the budget as presented, giving city staff the spending authority for the coming fiscal year. The commission did not adopt any mill‑levy reduction at the meeting. Staff said the administration could bring amendments later — subject to the public‑notice and hearing requirements that staff explained during the meeting.

What happens next: The adopted budget provides the city’s formal spending authorization for fiscal year 2026; any later changes that affect tax rates or total authority will require additional public notice and a subsequent hearing.