Leavenworth staff proposes 2027 budget with an 11% sewer-rate increase on the table

City staff presented the proposed 2027 operating budget to the Leavenworth City Commission on June 23, laying out assumptions, capital needs and a calendar for formal adoption.

The presentation flagged several pressures shaping the 2027 proposal: conservative sales-tax growth estimates, an anticipated 10% rise in health-insurance costs, and increasing personnel costs. Staff proposed a 2% across-the-board salary adjustment for city employees but noted that deferring two proposed staff positions (a fire training officer and a grant writer) would allow a higher one-time wage increase (3% instead of 2%).

On utilities, staff said the city faces substantial wastewater needs: the wastewater master plan estimates replacement costs exceeding $120 million. Staff said it has engaged financial advisors and will present options in July, but warned that none of the scenarios reduces rates; staff signaled a proposed 11% sewer-rate increase for 2027 and estimated a 3% increase for refuse services.

Staff also reviewed capital and organizational priorities: replacing police mobile data terminals (MDTs) because the devices run an unsupported operating system; adding a second police K9 for continuity of service; acquiring a live-burn training simulator and additional bunker gear for fire personnel; and continuing efforts on downtown revitalization and grant-matching to stretch limited funds.

Reserve policy and cash flow: staff reported projected reserves of about 21.9% at the end of 2027 under the current proposal (the city’s reserve policy sets a 16–30% target range) and noted that CoreCivic impact funds are inflating reserve totals absent matching expenses. Staff also reviewed the statutory calendar: budget books will be available July 6; an all-day budget session is set for July 13; public notices and hearings are scheduled in August with final submission to the county in September.

What’s next: The commission directed staff to bring more detailed scenarios, including revenue-neutral calculations and final recommendations on whether to include the proposed staffing additions; final adoption will follow the statutory notice and hearing schedule.