Budget was again the topic for the Hillsboro City Council meeting on Tuesday, Aug. 6.
Hillsboro City Administrator Matt Stiles told the council that the motor vehicle tax had been revised and was $24,000 more than originally planned in the budget.
“So that adjusted everything. I went back through and I adjusted up the smaller funds because of the amount that it changed. We did have some extra revenue that came into the general fund, and I went back through and looked at some of the capital expenditures, and I skinnied up a few of them,” said Stiles. “Overall, I made adjustments of about $10,000. With the combination of extra revenue and the $10,000 in cuts, we were able to reduce the mill levy proposed from 42.294 down to 40.998. It’s roughly the same as what the county adjusted our mill levy to at the end of last year before they levied it.”
Stiles explained that the proposed budget is still three mills above the revenue neutral rate.
“If you wanted to go down to the revenue neutral rate, we’d still need to cut about $72,000. Most of that’s going to have to come out of the general fund unless you want to cut the library and some of those other smaller funds like rec fund,” said Stiles. “We’re still above the revenue neutral rate, but it’s down. I feel pretty comfortable with it. But if you want to talk some more and want to get down into doing more cutting into it or try to trim that up, we can.”
“So any further cutting or getting to the revenue neutral rate, can we do that without reducing services or reducing what we’re doing for the city?” asked Mayor Lou Thurston.
Stiles explained that they could cut capital improvement projects and employee increases from the general fund, but even that would still only get $42,000 of the $72,000.
“It would impact services on some level. Would it be Armageddon? No. But it wouldn’t necessarily be great. It would be some of those things that are probably more quality of life and less what you would consider essential,” said Stiles. “The difference for the individual taxpayers isn’t super significant. But the more we have to cut, it’s a disproportionate impact on how we deliver those services.”
“We care about our constituents, but we also enjoy the services that we have and the quality of those services. It is just something to consider how much we do want to cut back on the services along with the wage increases for employees, as well. I think our city does a pretty good job of taking care of not only employees but citizens. And I’d really hate to go back on doing that,” said Councilman Ronald Wilkins.
“It’s always a balance. One of the things that we have done as a city in the past when we have made cuts is we have made cuts in capital to our detriment long term. Because if we don’t keep up with some of these capital expenditures, the cost of doing those just can get out of hand as well,” said Thurston.
“Things are expensive, and I think by keeping the good staff that we have, by not cutting back on those benefits and keeping the group that we’ve made is important,” said Wilkins.
The council agreed to publish the revised number of 40.998 for a RNR hearing on Tuesday, Sept. 3.
“We’ll have revenue neutral and the budget hearing at that time. That’ll be within our window to make those changes. Once you publish it, you can you can go down, but you can’t go back up,” said Stiles.
In other business, the council:
•heard a sanitation department update from David Lockwood.
•approved Ordinance 1396, which changes the zoning classification of the hospital from I-2 Heavy Industrial district to H-S Hospital District.
“Placing the hospital in the H-S District does not change its taxable value or impact operations. It does put the hospital property in the proper zoning and establishes the only currently allowed area for hospital operations in Hillsboro. For another facility to operate as a hospital, it would likewise have to apply for the H-S District zoning,” said Stiles.
•learned that the city was awarded a $500,000 CCLIP (City Connecting Link Improvement Program) from KDOT for the 2027 state fiscal year (SFY) starting July 1, 2027. The award will rebuild the intersection at US-56 and Orchard Drive and add deceleration lanes. To get the project going, the council approved Form 1302.
“The proposed cost of the project noted on Form 1302 is $478,780 which includes design and inspection. The city’s proposed match amount is $23,939. The cost estimate includes an inflation factor, but it’s important to note the maximum 5 percent match would be $25,000. The city would be responsible for any costs of $500,000. It’s probably unlikely to exceed $500,000 in total cost, but it is a possibility. Starting in SFY 2027 gives us two more budget cycles to account for the matching amount,” said Stiles.
•learned that the city will be cohosting a block party with Tabor College and the chamber of commerce from 6 to 8 p.m. on Saturday, Aug. 24, on Main Street. The food truck will be there to provide free hamburgers and hotdogs. The chamber of commerce is providing free soda and a pie eating contest. There will also be music and games. It is open to the community.
