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Atkins reviews FY27 budget with $350,000 earmarked for water distribution improvements
Summary
City Administrator Flory presented the proposed FY27 budget (about $6.2 million), highlighting a capital focus on water distribution system improvements with a proposed $350,000 transfer from local option sales tax and a newly established sewer sinking fund to meet SRF loan covenants.
At its meeting, the Atkins City Council reviewed the proposed fiscal year 2027 municipal budget, with Administrator Flory framing water distribution system improvements as the budget's marquee capital priority.
"We're putting resources behind that," Flory said of the water distribution work. He outlined a two-step near-term plan: hire an engineering firm via RFP, design the initial project area, and bid construction with work likely to begin next spring. The FY27 budget shows $50,000 for engineering and a $300,000 placeholder for construction activity, and Flory said the city proposes transferring $350,000 from projected local option sales tax revenue to the capital project.
Flory said the FY27 budget totals just over $6.2 million with operating expenses accounting for roughly 86 percent, a 6 percent capital budget (driven largely by the water project) and about 8 percent for debt service. He also described creating required reserve accounts: the budget establishes a sewer sinking fund required by prior SRF loan agreements so the city has funds set aside for later debt payments.
On funding, Flory reported projected local option sales tax revenue of approximately $228,000 and proposed earmarks tied to the referendum allocation (70 percent to community betterment, with portions for fire, parks and property tax relief). He said the council will continue the budget review process at upcoming meetings, set a special levy hearing at the Feb. 24 meeting, and publish required notices in March ahead of an April 14 budget hearing.
Council members asked clarifying questions about timing, debt capacity and how transfers would be used. Flory said the city’s total constitutional debt capacity is shown at roughly $12 million and that Atkins currently uses about 34.6 percent of that capacity, with outstanding debt near $4.2 million. He characterized the city’s financial position as strong, noting room for targeted capital investment without jeopardizing debt limits.
The council did not adopt a final budget at the meeting; it set review and publication dates to meet statutory hearing requirements and to allow more detailed refinement of project priorities and funding sources.
