Baldwin City workshop previews 2026 budget; staff recommends holding mill levy flat

Baldwin City staff presented a draft 2026 budget at a June 24 council workshop that leans on utility revenues and a flat mill levy while planning for modest assessed-value growth.

Presenter Ben told the council the largest single revenue category is charges for services—primarily utility receipts—estimated at about $11,000,000. He said the general fund totals roughly $4,300,000, with property tax revenue in the general fund about $1,600,000 and sales tax roughly $1,100,000.

The draft uses a preliminary county-assessed-value growth estimate of about 6% for planning, down from double-digit increases in 2023–24, and projects new assessed value for the city to be near $200,000 for the coming year after earlier peaks. "The preliminary assessed value we got back from the county is around 6% growth," Ben said.

Why it matters: the budget assumes the council will hold the mill levy flat rather than raise the tax rate, a policy decision that affects how much of the assessed-value growth translates into additional tax revenue. To preserve options, staff will prepare a resolution for the council to file with the county. Ben said the council will consider a resolution to exceed the revenue-neutral rate on July 15 to preserve the council’s ability to hold the mill levy flat, with a county transmittal targeted July 20 and a public hearing set for Sept. 16.

Spending assumptions and debt: Personnel costs drive the general fund—Ben said about 60% of general-fund spending is personal services (wages, benefits, retirement and insurance). The draft budget includes a combined 5% increase for cost-of-living and merit adjustments. He also outlined four proposed equipment/capital projects that staff plan to debt finance and begin drawing once financing is arranged, including maintenance at Spring Creek Lake and vehicle purchases.

Debt-service trends provide some capacity for future capital: Ben showed general-bond principal and lease schedules with several 2014–2015 issues retiring around 2027, which he said will reduce annual debt service and free capacity for possible projects.

Staff cautioned several assumptions are preliminary: the general-fund beginning cash was shown as about $129,005.12 and the draft projects a small net surplus (about $9,200) under current assumptions and April-year-to-date results; staff noted monthly financials and later-year receipts can change that picture.

What’s next: staff will return materials to the budget finance committee for further review of the electric fund and other items, prepare the July 15 filing related to the revenue-neutral rate, and carry the draft forward to the public hearing schedule. The council did not take formal votes during the workshop.