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Garden City council reviews budget pressures as health care and water costs rise
Summary
City officials told the council that rising health insurance costs (about a 30% jump) and higher wholesale water rates are top drivers in the FY 2627 budget, while departmental presentations highlighted grant-funded lead-line replacement, a $1 million annual water-main CIP, and a Radcliffe Center operating turnaround. Council approved the meeting agenda 4–0; the draft budget will be prepared for consideration at the next regular meeting.
Garden City’s city council heard department-led budget presentations on March 16, 2026, as staff outlined major cost pressures and proposed steps to hold services steady for residents. Treasurer Shannon Shepherd said higher health-insurance costs and wholesale water-rate increases are the primary budget drivers, and department heads described grant-funded infrastructure work and program growth that will shape the FY 2627 draft budget.
Shepherd told the council that property-tax growth is limited by the Headlee Amendment and that state-shared revenue forecasts are down modestly. “The main drivers are the health insurance cost increase, the water rate increases, decreases in state-shared revenue, the Headlee limitation on property tax growth, and declining interest rates,” Shepherd said, adding the city is taking a conservative investment approach to preserve liquidity.
Shepherd and City Manager Gibbons said the city is budgeting for roughly a 30% increase in health-insurance costs, about $1.2 million, and is…
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