By BECKY KISER
Hays Post
For the 15th consecutive year, the mill levy for the city of Hays will remain at 25 mills, the same as it has been since 2010.
City commissioners got their first glance at the 2025 draft budget Tuesday with highlights presented by Collin Bielser, deputy city manager.
"The budget is balanced, and reserves are funded. ... Total assessed valuation is up 4.2%," Bielser said.
"Unfortunately, sales tax receipts are down this year to date," Bielser said. "So, we do project revenues at the end of 2024 to be down about 2.6% below what we originally budgeted."
Sales tax revenues are the primary funding source for the city's general fund. For 2025, a 2% increase over 2024 projections is estimated.
Although general fund spending will be about $178,000 below 2024 levels, operating expenditures will increase by $625,000, mostly due to a 2% step and 3% cost-of-living increases for all city employees.
The number of city employees will also increase by seven, including four more police officers. A new public relations position for the city manager's office has been added. The city will have 183 full-time employees, still below the high of 186 employees in 2023.
Capital improvement projects for 2025 include $8 million that has been set aside for renovation and expansion of the existing Astra Bank building in downtown Hays for the future police station and municipal court.
Another $5 million is included for extending infrastructure to the city's property northeast of the Interstate 70 Exit 161 interchange.
As the R9 Ranch water transfer project progresses, $6 million will be used for land acquisition costs for the 68-mile pipeline from Edwards County to just south of Hays.
The reconstruction of 32nd/33rd Streets from Willow to Vine is planned to cost $1.8 million.
Reconstruction of the crosswind runway and the Taxiway M intersection at the Hays Regional Airport, which will cost $337,000, is also to be completed. The FAA will pay for 95% of the project.
Commissioner Mason Ruder was pleased with the budget numbers.
"My initial glance through it, projecting revenues down and expenditures up, instead of coming to us in a panic, you put pencil to paper and made it work," Ruder said.
Although revenue is down, the general fund will transfer about $2.15 million to the Commission Capital Reserve account.
Of that transfer amount, about $1.2 million comes from the city's share of the Ellis County 1/4 cent sales tax approved by voters in 2020.
"Times are a little tighter than they have been," said Mayor Shaun Musil, "but we're still moving forward."
Commissioners will have several opportunities to review the budget again in detail prior to the Sept. 12 public hearing.
"If the public has any questions or concerns about this budget, please contact any of the commissioners," said Sandy Jacobs, vice mayor.
The draft budget is available on the city's website at www.haysusa.com.
In other business, Jeff Boyle, director of parks, reviewed the renewal of the lease agreement with Fort Hays State University for Larks Park. With a few minor adjustments, the city's cost for the lease should go down slightly.
Boyle also reviewed facility agreements with the Hays Recreation Commission for Bickle-Schmidt Sports Complex, swimming pool services, and recreation facilities. Hays Rec has agreed to increase the city's stop-loss commitment for the municipal pools from $26,000 to $40,000.
Water Resources Director Jeff Crispin presented a recommended bid award for sewer point repairs in 73 locations for $299,697 from CC Steel, LLC, Maple Plain, Minnesota.
The three items will be voted on at the next city commission meeting.
Commissioner Alaina Cunningham was absent from the meeting.