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Atkins council reviews proposed $6.2M FY27 budget, prioritizing major water distribution projects and new reserve funds
Summary
Administrator Flory presented a work-in-progress FY2026–27 budget totaling about $6.2 million, highlighting a proposed $350,000 local-option sales-tax transfer for major water distribution improvements, the establishment of a sewer sinking fund tied to SRF loans, and projected decreases in residential rollback and homeowner tax bills.
At a lengthy council discussion, Administrator Flory walked through the City of Atkins' proposed fiscal year 2026–27 budget, describing a roughly $6.2 million package that places a priority on water distribution system improvements and on establishing reserve funds tied to state revolving fund (SRF) loan obligations.
"Water system improvements is really another big item for us. That's really the marquee the centerpiece of this proposal fiscal year 27 budget is to start making big water distribution system improvements," Flory said, urging that the city put resources behind a major capital effort.
Flory explained the budget composition: approximately 86% operating, 6% capital (primarily the water distribution project) and 8% debt service. He proposed transferring $350,000 of local-option sales-tax proceeds into capital for the FY27 water project, and described a plan to issue an RFP for engineering and then bid construction next year. "What I'm doing here in the budget is saying that we're taking the position that we're going to spend $350,000 this year, probably a similar amount next year on a major water distribution system," Flory said.
On debt and reserves, Flory said bond agreements tied to prior SRF loans require a sewer sinking fund; the FY27 budget creates that sinking fund so the city will have one year of debt service in reserve. "We're proposing to have one year of each of those in the sewer sinking fund," Flory said, adding the city will move money from sewer revenues into that reserve to meet bond covenants and ultimately lower debt service pressure in future years.
Flory also reviewed property-tax mechanics and projections. He said the residential rollback will fall about 2.9 percentage points for FY27 (from roughly 47.4316% to 44.53%), and ran illustrative math showing a home with $400,000 assessed value would see an estimated $180 annual decrease in city-related taxes under the proposed levy and rollback changes.
Other budget notes included solid-waste contract changes (a new contractor lowered standard household service to about $19), local-option sales-tax allocations (70% community betterment; 10% fire, parks, and tax/debt relief each), and the city's debt capacity (Flory reported roughly $12 million constitutional capacity with about $4.2 million outstanding debt, leaving capacity used around 34.6%). Flory said some timing shifts in prior fiscal years require a FY26 budget amendment and explained specific transfers and expenses that created that amendment.
Council members asked clarifying questions about loan payoffs and timeline. Flory said one SRF payoff schedule shows about 10 years remaining and discussed options to accelerate repayment by blending rate reductions with sinking-fund contributions.
No final budget vote occurred; council set dates for additional reviews and public hearings (March 10 and March 24 preliminary steps; full budget hearing April 14). Flory said staff will refine slides and return with updated materials at upcoming meetings.
