Goddard CFO previews budget, flags intent to notify county of plan to exceed revenue-neutral rate

CFO Verkara told the Goddard City Council the city is seeing solid revenue growth and will ask the county to publish notice that the city intends to exceed the revenue-neutral rate for property taxes.

"We will be bringing a resolution stating that the city intends to exceed R and R," Verkara said during the workshop, describing the required procedural step ahead of the budget and revenue-neutral-rate hearing in September. Verkara said the council will consider that resolution at its July 6 meeting and that residents will receive mailed notice before the formal budget hearing.

Verkara presented several figures the council will use in coming weeks: an assessed valuation presented at about $94,500,000; a revenue-neutral-rate (RNR) figure reported in the packet as 36.274 mills; and a current mill levy cited in the presentation at roughly 39.3 mills (the packet cited 39.299 in one slide and Verkara later referenced 39.22). He said one mill on the 2027 valuation would generate approximately $94,554, making the gap between the current levy and the RNR roughly $286,000 in additional property-tax revenue if the council elects to exceed the RNR.

The presentation detailed how the tax levy is allocated across funds: Verkara said the general fund receives the largest share (about 33.92 mills), with debt service and the library receiving smaller portions. He reminded the council that prior mill-levy increases were used to fund the city's multi-year street program.

Verkara also highlighted other revenue sources and near-term projections. He said the citys mix of property-tax, sales-tax, franchise and use taxes, together with modest fee increases, is producing stronger-than-expected revenues and that some development-related project-administration fees are likely to boost the general fund. "This year, I have it estimated being around $170,000. Next year, it's gonna be $864,000," he said of project administration fees tied to developments moving to permanent financing.

On capital spending, Verkara noted a line in the proposed budget for engineering and design on a possible police station and discussed alternatives for paying up-front design costs versus borrowing later. He characterized the overall revenue projections as conservative and said the packet does not include potential star-bond revenues or some development upside that could improve the outlook.

Personnel and staffing consumed the latter portion of Verkaras presentation. He said the city has added positions in recent years (including a director of human resources and a building inspector), that total full-time headcount could range up to the high 60s under some scenarios, and that the recommended budget scenario incorporates a 4% cost-of-living/merit adjustment along with the removal of one proposed police officer and one public-works position to reduce costs. "Scenario 3 is what you actually see in our budget," he said, describing the adopted compromise that reduced projected personnel cost by roughly $181,660 versus a fuller-staff scenario.

Council members pressed on break-even math for bringing inspection work in-house, asked for a permit-volume report to show when local inspections would cover the costs of a full-time inspector, and requested clearer public communication on hydrant repairs after residents raised concerns. A resident, Gary Smith of 2021 East Greenhill Court, raised a separate public-safety concern about damaged sidewalk ramps and roaming animals; staff promised to follow up after the meeting.

Votes at a glance: the council approved the consent agenda (four items) on a voice vote that the chair recorded as "Motion carries 4 0." The meeting adjourned by voice vote after a motion and second.

What happens next: the council will be asked on July 6 to adopt a resolution notifying the county of the city's intent to exceed the revenue-neutral rate; the formal budget and RNR hearing is scheduled for September, when the council may adopt a final levy and budget. Staff was asked to return with a permit break-even analysis and more detailed figures on building-inspection fees and hydrant repair scheduling.