By BECKY KISER
Hays Post
Hays city commissioners got their first look at the draft 2022 budget during their work session Thursday night. The mill levy will remain at 25 mills according to Toby Dougherty, city manager, even as three more city employees will be hired next year.
"The biggest part of the allocation increases in the operating budgets are the salaries," Dougherty said. "We are making investments in our personnel this year."
The budget contains a two percent programmed step increase and three percent cost-of-living increase for all city employees.
The number of employees will increase from 181 - where it has remained since 2011 - to 184.
The city will hire another IT technician, an airport maintenance worker, and a parks maintenance worker.
Sales tax revenues, which make up most of the general operating fund, were not down as drastically during last year's coronavirus pandemic as officials had feared.
They're back up in 2021, nine percent year-to-date.
"We're looking at sales tax revenues up two percent on top of that in 2022," Dougherty told commissioners. The city's share of the recently adopted Ellis County sales tax will be about $825,000.
Those dollars contribute most of the revenue to the general fund which pays for things such as police and fire protection, parks, sports complex, golf course, swimming pool, social services and economic development.
Grow Hays, the city's economic development arm, will see its budget increased to $180,000 from $100,000 as directed by city commissioners during a discussion earlier this year.
Still cautious of the COVID environment, Dougherty and Finance Director Kim Rupp plan to keep the unreserved fund balance a little higher than usual next year.
"Just in case we happen to see a sharp revenue reduction that we weren't planning or expecting because of things going on nationwide, we would have little bit of a buffer built into it so that we can absorb that."
Commission policy requires the city to carry a 10 percent unreserved balance in the general fund.
The city's total assessed valuation is up four percent.
"As usual, the budget is balanced and reserves are funded," Dougherty emphasized.
Other highlights in the 2022 budget include purchase of new municipal court records software and an additional $50,000 allocation for fuel due to rising prices.
One of the largest capital improvement projects scheduled for 2022 is $2.85 million dollars for reconstruction of south Vine Street from 13th to the Highway 183 Bypass.
Due to changes in state legislation, the city budget calendar is elongated this year by a month. The public hearing will be held September 9 and the approved budget submitted to the Ellis County Clerk on October 1.
Commissioners will continue reviewing the draft budget during work sessions on July 15 and August 5 and 19.
The 2022 draft budget is available on the city's website.