Garden City officials propose 7.581 millage rate to cover fire‑fee shortfall

Garden City officials on Tuesday presented a proposal to raise the city’s property tax millage to 7.581 to help cover an estimated $2.8 million shortfall after the municipality stopped billing fire‑protection user fees.

At the start of the public hearing City Manager (transcript label: 3) said the city’s “goal this afternoon is transparency,” and Finance Director Katie Dreger (transcript label: 4) walked through the adopted 2026 budget, an amended budget and the levy calculation that produced the proposed rate.

Dreger said the amended budget required the city to move the entire fire department budget into the general fund after fire‑protection user fees were no longer being billed. The change increased the appropriation by about $1.7 million to a $5.3 million total for that line. Dreger said the city anticipates just over $8 million in property tax revenue at the proposed rate but noted the city lost roughly $1.4 million in fire‑protection revenue, leaving a net gap of about $2.8 million that the millage increase would help cover.

Officials showed how the change would affect property classes. Dreger said Garden City has roughly 2,200 residential properties, of which about 1,700 are developed; the average home value cited was $214,000 with an assessed value around $85,000. After local exemptions — including a $40,000 homestead exemption and a local Stevens Day exemption — Dreger said the typical taxable value for many homeowners would be about $45,000. She said roughly 1,000 developed homes would pay less under the proposal, 717 would pay more, and among those who pay more the lowest annual increase would be about $0.18 and the highest about $1,300 a year; the average increase for properties that see a rise was described as about $146 annually.

Dreger also presented commercial figures: the city has about 944 commercial properties (912 developed), an average commercial value reported at roughly $1.5 million, and a mix of properties that would see increases and decreases. She cited an example maximum commercial increase of about $148,000 a year for a very large warehouse but said that applied to only a handful of properties.

When residents asked about timing, Dreger said that, if the rate is approved through the usual process, the property tax bills would be mailed in September. Staff offered to calculate individual impacts and asked residents to sign a notebook with name, address and phone number for follow‑up.

No formal vote occurred at the hearing; councilors said they would discuss the matter in upcoming meetings and a workshop scheduled for 5:30 p.m. after the hearing. The city also said it would continue to rely on reserves and any additional revenue that comes in to offset costs.

The hearing record shows officials repeatedly urging residents to check available exemptions and to apply; staff noted application deadlines and guidance is available from the tax assessor’s office.