Abilene local news summary

Commission Advances 4% Tax Hike Proposal

Dickinson County Adopts 2026 Budget, Slashes Mill Levy by 7%

Split Vote Advances $1.37M Buckeye Corridor Project Amid Debate Over Costs and Sidewalks

Water Rate Hikes Loom as Utility Deficits Revealed; City Subsidizing Rural Water

New Report Describes Abilene Water Supply as “Tenable” but Strained

City to Seek $1M Loan for Failing 37-Year-Old Water Control Systems

1. Commission Advances 4% Tax Hike Proposal

ABILENE - Facing structural deficits and rapidly declining fund balances, the Abilene City Commission on August 25 approved the publication of a 2026 budget that includes a 4% property tax increase. The proposed mill levy of 47.537 exceeds the revenue-neutral rate and is up from the current 45.648 mills. Interim City Manager Jon Quinday presented a stark financial outlook, noting the budget already reflects severe austerity measures, including workforce reductions, a wage freeze, and the elimination of new capital investments. Commissioner John Kollhoff argued vehemently for a revenue-neutral budget, stating he did not want to make the city’s spending problem the citizens’ problem. However, staff warned that remaining revenue-neutral would deplete the general fund’s cash reserves to near zero. The final budget hearing is set for September 8.

2. Dickinson County Adopts 2026 Budget, Slashes Mill Levy by 7%

DICKINSON COUNTY - The Dickinson County Commission unanimously adopted the Fiscal Year 2026 budget on August 21, delivering a significant 7% reduction in the county mill levy. This marks the fourth consecutive year the county has lowered its tax rate. The new rate represents a decrease of 3.634 mills, providing $516,405 in property tax relief county-wide. The $32.9 million total budget is also $1.3 million lower than the previous year. Finance Director Marcus Rothschild attributed the savings to diligent work by all departments and roughly $500,000 in savings realized during the finalization of the county pay plan analysis. Commissioners praised staff efforts in achieving the reduction amid rising costs.

3. Split Vote Advances $1.37M Buckeye Corridor Project Amid Debate Over Costs and Sidewalks

ABILENE - The Abilene City Commission voted 4–1 on August 25 to proceed with the full scope of the $1.37 million Buckeye Avenue (K-15) and S. 6th Street improvement projects (CCLIP). The decision followed substantial debate over whether to reduce the project scope. Commissioner John Kollhoff, the lone dissenter, argued strongly against the full scope, criticizing engineering costs and asserting that sidewalk replacements included in the project are the responsibility of adjacent businesses, not the city. Interim City Manager Jon Quinday cautioned that reducing the scope would jeopardize the city’s credibility with the Kansas Department of Transportation (KDOT)—which is providing $800,000 in grants—and would not erase approximately $447,000 in sunk costs already incurred. The commission subsequently approved the KDOT supplemental agreement and the engineering contract with Olsson, both with 4–1 votes.

4. Water Rate Hikes Loom as Utility Deficits Revealed; City Subsidizing Rural Water

ABILENE - Abilene utility customers are likely to see rate increases following a revenue analysis presented on August 25 that revealed the water utility has operated at a deficit for five years. The analysis showed it costs the city $5.47 per thousand gallons to produce water, while residential customers pay $4.47. A significant disparity was highlighted regarding the Rural Water District, which pays $1.48 per thousand gallons. The district consumes 20% of the water produced but contributes only 3% of the revenue, meaning city customers are heavily subsidizing the district. Staff recommended an immediate adjustment to the monthly base charge and a comprehensive cost-of-service study to establish equitable rates.

5. New Report Describes Abilene Water Supply as “Tenable” but Strained

ABILENE - In a newly initiated monthly report to the City Commission on August 25, Abilene public works staff described the city’s current water supply as “tenable” but stressed. The report detailed the challenges of managing the city’s wells, noting that several wells are showing “impairment” due to low water levels and are being used sparingly to allow the wellfield to recharge. The city relies on careful blending from different sources to meet quality standards. While the treatment plant has the capacity to process 4.5 million gallons daily, the wells cannot currently produce that volume. Staff emphasized the critical need to identify and secure additional water sources for the future.

6. City to Seek $1M Loan for Failing 37-Year-Old Water Control Systems

ABILENE - The City of Abilene is pursuing State Revolving Fund (SRF) loans to replace the failing “brains” of its water and wastewater treatment plants. Public Works Director Brad Anderson reported on August 25 that the SCADA control systems, utilizing original components from 1988, are malfunctioning. The city has been relying on increasingly scarce refurbished parts to maintain operations. The estimated cost for the upgrades across both plants ranges up to $1 million. Given the depleted state of the utility funds, staff recommended applying for low-interest SRF loans (approx. 3%) as the only viable financing option for the essential infrastructure.

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