Abilene – Week of July 15, 2025
Tax Rate; Bonds Move Forward; County Delays Parking Project; Foundation Seeks Paving Help; Financial Outlook Deemed Negative
Abilene City Commission Narrowly Approves Intent to Exceed Revenue-Neutral Tax Rate
Abilene Moves Forward on Major Bonds with Split Vote
Dickinson County Debates, Delays $214,760 Parking-Lot Project
Eisenhower Foundation Seeks City’s Help for Road Paving at New $14 Million Facility
Abilene’s Financial Outlook Deemed “Negative” by Standard & Poor’s
Abilene City Commission Narrowly Approves Intent to Exceed Revenue-Neutral Tax Rate
ABILENE - The Abilene City Commission voted 3-2 to approve a resolution of intent to exceed the state-mandated revenue-neutral tax rate, following a stark presentation on the city’s declining financial health. Interim City Manager Ron Quinday presented data showing city expenditures outpacing revenues, leading to rapidly depleting cash reserves that are projected to fall below the city’s own policy minimums. Quinday warned that without addressing the structural imbalance, the city would face layoffs and service cuts in 2026. The approved resolution sets a maximum potential mill levy of 47.556, which would represent a $2.54 monthly increase for a home valued at $139,000. The vote was contentious, with Commissioner Chris Kohlhoff arguing the city should find efficiencies before asking taxpayers to “cover up our mistakes,” while Commissioner John Paul Witt stated that a desire to cut taxes must be paired with identifying which services citizens are willing to lose. A public hearing on the budget is scheduled for September 8.
Abilene's Financial Outlook Deemed "Negative" by Standard & Poor's
ABILENE - A recent credit-rating summary from S&P Global Ratings affirmed the City of Abilene’s AA- long-term bond rating but assigned it a negative outlook, a detail highlighted during the city’s budget discussions. According to the report, the negative outlook reflects concerns about the city’s financial sustainability, noting a “structural imbalance” where expenditures consistently exceed revenues. The report also pointed to reserve drawdowns that limit the city’s flexibility and reduce its capacity to handle unexpected costs or economic downturns. This external assessment reinforces the internal data presented by the interim city manager, which shows a multi-year trend of deficit spending.
Abilene Moves Forward on Major Bonds with Split Vote
ABILENE - In a divided 4-1 vote, the Abilene City Commission approved the issuance of general-obligation notes to fund the industrial park and other recreation improvement projects. The city secured a favorable true-interest rate of 3.34 percent from Loop Capital Markets, which is expected to save approximately $700,000 in interest costs compared with initial estimates. Despite the positive financial terms, the decision drew sharp criticism from Commissioner Chris Kohlhoff, who voted against the measure. “I think we have really been acting irresponsibly,” Kohlhoff stated, arguing the city has no way to pay for the bonds for the industrial park and is financing projects like replacing sidewalks that don’t belong to the city.
Dickinson County Debates, Delays $214,760 Parking-Lot Project
DICKINSON COUNTY - A proposal to construct a new 27-space parking lot on the southeast corner of the county campus—where the former County Attorney’s building once stood—with ingress and egress from First Street was met with debate and ultimately deferred by the Dickinson County Commission. While the need for more parking was acknowledged, commissioners questioned the price tag and explored alternatives. One commissioner suggested that before spending over $200,000, the county should first try requiring some employees to use an existing lot across the street. Another commissioner suggested the county could perform some of the site-preparation work in-house—such as grading and tree removal—to potentially shave 10-15 percent off the total cost. The commission decided to table the project until after budget discussions are further along
Eisenhower Foundation Seeks City's Help for Road Paving at New $14 Million Facility
ABILENE - The Eisenhower Foundation, embarking on a $14 million project to build a new educational facility, has asked the Abilene City Commission for assistance in paving an adjacent road. Emily Miller, the foundation’s Director of Development, requested that the city partner with the foundation to find state or federal grants to fund the paving of Southeast 4th Street, a currently unpaved road north of the planned facility. The foundation has reached roughly 70 percent of its fundraising goal and is on an aggressive timeline to break ground by the end of 2025 to capitalize on a $5 million state grant. City officials noted that the road is partially owned by the county and suggested that any road grant would likely need to flow through the city.
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