Hutchinson adopts 2026 budgets and a $9.86 million final tax levy

The Hutchinson City Council on Dec. 23 approved a slate of 2026 budgets and tax levies, adopting enterprise fund budgets, the general fund budget and the city's final tax levy after staff presented updated revenue and transfer assumptions.

Finance staff summarized enterprise funds and said the utility and enterprise funds will transfer $920,000 to the general fund to reduce the tax levy. The council adopted resolutions approving the 2026 liquor, water, wastewater, stormwater, refuse and compost fund budgets as presented.

For the general fund, staff reported revenues and expenditures totaling $16,548,658. The final general fund levy was listed at $7,226,682 and the total debt levy at $2,610,792, giving a combined final tax levy of $9,862,474 and an overall levy increase of 6.3% from the prior year. Staff estimated the levy change would add about $52 in annual city taxes for a median $275,000 home.

Councilmembers asked for and received clarifications on cash balances, depreciation-driven net losses in enterprise funds and a planned issuance of bonds related to wastewater projects. Staff noted an 8% anticipated stormwater rate increase built into stormwater revenues and a multi-year projection indicating continued moderate levy increases over the five-year forecast.

The council approved the final levy and associated resolutions (HRA and EDA levies were also adopted for 2026). The approvals were recorded by voice vote; staff will proceed with the administrative steps to implement the budgets and levy schedule.

Next steps: staff to carry out budget implementation, finalize bond financings as planned for capital projects, and provide periodic updates to council.