South Hutchinson adopts $9.95 million 2027 budget, taxes above revenue neutral rate

South Hutchinson's council voted 5-0 on Monday, Sept. 14, to adopt a $9,950,010 budget for 2027 and to levy property taxes above the revenue neutral rate, with no resident comment recorded at either hearing. The council passed Resolution 26-17, which cleared the way for the higher levy, on a recorded roll call, with Mayor Kyle Cokeley, Council President Matthew Elliott and council members Valerie Griffin, Heather Gaines and Joshua Pettay all voting yes. The budget certificate lists the revenue neutral rate — the levy that would raise the same amount of property tax as the year before — at 39.587 mills, and the amount to be raised from property owners at $1,246,183.

Where the 2027 spending authority sits

According to the 2027 budget certificate addressed to the Reno County clerk, the general fund carries the largest share of that authority at $5,088,775, including $1,240,853 in property tax. The water utility fund is set at $1,588,339, sewer at $1,402,518, debt service at $754,193 and the street and economic development sales tax fund at $683,468, with smaller amounts for special highway, $229,936; employee benefits, $110,000; convention and tourism, $42,860; flood control, $31,471; diversion, $14,327; and special park, $4,123. The certificate sets those figures as maximum expenditures for the year, fund by fund.

Council authorizes bonds for Main Street and the water towers

Council members also voted 5-0 on each of two resolutions authorizing general obligation bonds — Resolution 26-15 for improving Main Street and Resolution 26-16 for improving the city's water towers — and the minutes record no principal amount, term or repayment source for either. JEO Consulting Group's Aug. 20 concept estimate puts the Main Street project, running from Des Moines Avenue to the south end of the Arkansas River bridge, at $3,620,364, including $2,732,350 of construction and a 30% contingency, with $920,592 for a 2-inch hot-mix overlay, $360,000 for full-depth patching and $125,000 to rebuild the reinforced concrete box top at Avenue B and Main. Separately, the council did not act on a $72,000 low bid to patch Main Street; the minutes say members did not consider it a good use of funds with the street due to be milled and overlaid in 2027, though they said they would like the bumps repaired.

Two ordinances pass with the figures off the record

Two ordinances passed 5-0 with the money involved left off the record. Ordinance 26-15, which adjusted the pay of the council, passed on a motion by Pettay and a second by Griffin, and Ordinance 26-16 established franchise fees with Black Hills Energy. The minutes and the meeting packet do not state the old or new council pay, the franchise fee percentage, or when it would reach customer gas bills.

53 water service lines must be presumed lead

A JEO staff member identified in the minutes only as Sasha told the council the city has what appear to be 53 water service lines of unknown material that, without records, must be assumed to be lead under the federal Lead and Copper Rule, the U.S. Environmental Protection Agency regulation that requires water systems to identify and replace lead service lines. According to the minutes, the replacement window opens in 2028 and runs through 2038, JEO is seeing private-side replacement average $6,000 to $10,000 a line, and the firm can help the city explore State Revolving Fund money to make the work more affordable for property owners.

Excavator, sewer inspection, farm lease approved

The council also voted 5-0 to buy a mini excavator from Foley Equipment for $57,900, to award sanitary sewer inspection services to Mayer Specialty Services, with no contract amount recorded, and to approve a farm lease with Dan Rasure of Fed & Happy, who presented a crop and soil plan for two city parcels; lease term, acreage and rent are not recorded. After a seven-minute executive session on a possible real estate purchase, members voted 5-0 to allow Schenk to bid on property at the county tax sale.

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