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City presents midyear general-fund outlook; Topeka Metro seeks to restore mill levy as council sets hearing dates
Summary
City budget staff told the governing body Topeka is projected to end FY2026 with roughly $126 million in general-fund revenue and a potential $4 million drawdown of reserves; Topeka Metro requested permission to exceed the revenue-neutral rate and restore a 4.2 mill levy, and staff set RNR hearing dates for the city and Metro.
City staff and Topeka Metro representatives briefed the governing body on July 7 about midyear finances and upcoming revenue-neutral-rate (RNRA) decisions that will affect the 2027 budget.
Budget deputy Josh Mac presented a 6-plus-6 general fund summary through June and said the city projects about $126,000,000 in general-fund revenue for FY2026. Personnel costs account for roughly 75% of general-fund spending; staff projected a $4,000,000 use of cash that would leave an estimated $28,800,000 (about 22% of the city’s minimum fund balance policy) if trends continue. Mac warned sales tax and franchise fees are essentially flat through the first half of the year and flagged an October payment of $2.3 million for Project View that will affect reserves.
Council members asked about the fuel/special-highway fund and whether gas-price increases will require subsidy; staff said that fund will likely be subsidized in 2027 and that vacancies held this year are part of the mitigation.
Separately, Candace Styles, chair of the Topeka Metro board, and CFO Richard Appelhan asked the city to allow Topeka Metro to exceed its revenue-neutral rate and to restore a 4.2 mill levy (Metro had been reduced last year). Styles said local levies leverage state and federal matching funds and argued the funding is necessary to maintain and expand bus service for residents who depend on transit.
Staff said next steps include setting the RNRA hearing dates: the city’s special council meeting to set the hearing for the RNRA is scheduled for Aug. 25; Topeka Metro’s RNRA hearing is set for Sept. 1. The governing body did not adopt a final mill rate on July 7; that is scheduled for the public hearing process next month.
Votes at a glance: earlier in the meeting, the council approved multiple board appointments (motion carried, recorded as 9 yes) and approved the consent agenda as amended after removing one affordable-housing item (clerk recorded 10 yes). The council also recessed into executive session later in the meeting and reconvened with no action taken.
What’s next: public hearings on the RNRA will proceed in late August and early September. Staff said one mill currently equals about $1,565,000 of assessed value at the present tax base.
