Sterling votes to file notice of intent to exceed Revenue Neutral Rate for FY2027 budget

City Manager Ian Hutcheson recommended the Commission approve submitting a notice of intent to exceed the Revenue Neutral Rate (RNR) for the Fiscal Year 2027 Budget as required by K.S.A. 79-2988. Hutcheson explained the RNR is the mill levy that would produce the same tax revenue as the previous year using the current year's assessed valuation, and said taxing subdivisions that wish to exceed the RNR must notify the County Clerk by July 20, 2026, to preserve the option. He provided the City's estimated 2026 assessed valuation ($17,748,916, a -0.1% change from 2025) and said the RNR is 42.664 mills; the proposed placeholder levy presented to the Commission was 47.650 mills (a 5.00-mill increase).

Hutcheson noted that notifying the County Clerk does not obligate the City to adopt the proposed levy; Rice County is required to notify affected taxpayers at least 10 days prior to the first RNR public hearing, and the Commission scheduled its RNR public hearing and budget hearing for Sept. 8, 2026. Commissioner Richard L. Jones, Jr. moved and Commissioner Bob Boltz seconded approval of filing the notice; the motion passed 5-0.