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Merriam council votes to exceed revenue‑neutral rate and adopts 2025 budget
Summary
After a public hearing, the council voted 7–0 to exceed the revenue‑neutral mill rate and then adopted the 2025 operating budget; staff recommended a mill rate of 26.665 versus a revenue‑neutral rate of 21.168 to restore about $1.5 million in projected property tax revenue.
At a public hearing on the city budget and revenue‑neutral rate, staff presented the 2025 proposed operating budget and the mechanics behind the revenue‑neutral calculation.
“Revenue neutral rate is...21.168,” the budget presenter noted when explaining the concept that the revenue‑neutral rate would yield the same total property tax revenue as the prior year given increased assessed valuation. Staff recommended a mill rate of 26.665 for 2025, which the presenter said would raise roughly $7.7 million in property taxes — about $1.5 million more than the revenue‑neutral calculation — to restore revenue lost because of a prior clerical error and to maintain current service levels and reserve policies.
The presenter walked the council through key fund highlights: a proposed general fund operating budget, transfers to capital improvement projects and equipment reserves, proposed personnel increases (3% across the board with a 2% merit/market pool), equipment purchases (including public‑works and police vehicles and a new imaging camera for fire), and the city’s large CIP balance earmarked for a downtown creek project. Staff said some items in the budget (including staffing tied to a single‑hauler program) would only be enacted if the underlying program were adopted.
Members of the public raised concerns about the size of reserves, downtown property purchases and how much the increased mill rate would affect homeowners on fixed incomes. Staff offered calculators and one‑on‑one follow up for residents seeking home‑specific tax impacts.
After the hearing, a council member moved to approve a resolution to exceed the revenue‑neutral rate; the motion was seconded and passed by roll‑call vote, 7–0. The council then moved to adopt the 2025 operating budget as presented; that motion was seconded and passed 7–0, certifying the city’s budget authority under state statute.
The budget authorizes the staffing and capital purchases outlined by staff and includes a recommended mill rate of 26.665; council action set the process for budget certification and the next statutory steps.
