Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Pittsburg staff present five-year forecast, recommend 3% raises and 3% utility increase; hearings set
Summary
City Manager Darren Hall presented a five-year financial forecast recommending 3% employee raises and a 3% annual utility rate increase instead of a one-time 15% sewer charge; staff said the submitted budget will be posted and public hearings are set for Aug. 12 and Sept. 9.
City Manager Darren Hall presented the Pittsburg City Commission with a five-year financial forecast on July 22 and recommended a series of measured steps to balance the city's growth and long-term debt obligations.
"I present the city of Pittsburg's 2026 submitted budget for your consideration," Hall told the commission, outlining a forecast built on the county's June assessed valuation numbers. Hall and finance staff said the city will post the submitted budget online and hold a public hearing on Aug. 12, with adoption targeted for Sept. 9.
Why it matters: staff said assessed valuation is projected to grow about 7% in 2026, driven roughly half by higher valuations of existing property and half by new construction and remodels. That growth improves revenue projections without increasing the general fund mill rate, which staff recommended holding flat.
Key recommendations and context
- Employee compensation: Staff recommended a 3% cost-of-living raise for 2026, replacing an earlier 2% plan. Hall said the forecast reflects the cost of planned raises across funds.
- Utilities and wastewater: After reviewing debt schedules and a change in state rules that permit loan repayment over 30 years rather than 20, staff recommended moving from a previously discussed one-time 15% sewer charge to an annual 3% utility fee increase to spread costs and reduce rate shock. "We're gonna recommend just doing the 3% that we do with all the other utilities," Hall said.
- Mill rate and taxes: Staff reported the general fund mill rate remains essentially unchanged since 2018 and recommended no mill rate increase in the five-year forecast. Staff also explained an apparent spike in assessed valuation tied to a hospital property that will likely regain nonprofit tax-exempt status; that temporary item was removed from forecasted revenues to avoid a budgeting shortfall.
- Revenues and reserves: Staff cited revenue figures (roughly $45.0 million) and noted total budgeted spending in the broader submission (staff cited figures in the $70M range and later ~ $74M in a draft message), with reserves of about $22M across funds. Staff highlighted a policy target of roughly two months (about 16%) in operating reserves and said the forecast projects reserves to remain above minimums while supporting planned debt service.
- Debt and major projects: The forecast incorporates a roughly $43 million loan for the wastewater treatment plant; staff explained the loan structure and projected debt-service peaks in 2028. Hall also highlighted three large adjacent projects—EaglePicher, the National Institute for Materials Advancement prove-out facility at Pittsburg State, and a Kansas Bureau of Investigation regional crime lab—with a combined value above $80 million, and said the EaglePicher groundbreaking is scheduled for July 24.
What happens next: staff will post the submitted budget on the city website and accept public comment ahead of the Aug. 12 hearing and the Sept. 9 adoption vote. Hall said the forecast is conservative and intended to present a balanced plan while preserving flexibility for public feedback.
Sources and attributions: quotes and figures in this article come from the July 22 city commission presentation by City Manager Darren Hall and finance staff (Jay), as recorded in the meeting transcript.
