2026 Budget Preparation

The Newton City Commission in July approved a not-to-exceed budget for publication that keeps the property tax rate flat for 2026. The proposed $62.7 million budget includes:

  • Increases in wages and benefits for City employees. A recent compensation study recommended that Newton pay its staff at 60% of the market value — just a bit more than the median — to attract and retain high-quality employees.
  • An increase in equipment reserves and building maintenance funds for anticipated replacement and maintenance needs.
  • Continued funding of external City partners: Newton Area Chamber of Commerce ($30,000), Harvey County Economic Development ($142,275), Health Ministries Clinic ($40,000), and Newton Area Senior Center ($20,000).
  • No transfer from the Wastewater Fund to the General Fund for property tax relief. In the past, about $1.14 million was transferred each year from the Water and Wastewater Funds, but in the past couple of years, those transfers were not necessary. Staff are hopeful that trend can continue this year and next year.

The proposed budget projects a General Fund balance of 14.7% for 2026; the City strives to maintain a balance of 15%.

With this budget, the City will exceed the Revenue Neutral Rate for 2026, the tax rate that would generate the same amount of revenue as generated in 2025. To remain within the RNR, the City would need to lower its mill levy by 3.403 mills. That’s because Newton’s assessed valuation rose by an estimated 4.95% for next year because of new development and rising property values. 

Commission Discussions & Presentations

Budget Process Timeline

  • May 14-15: Budget work sessions
  • June 24: Budget work session
  • July 15: Send intent to exceed Revenue Neutral Rate to County Clerk
  • July 22: Set maximum budget for publication
  • Aug. 26: Hold RNR and budget public hearings, approve resolution to exceed RNR, and adopt budget

Department Budget Presentations

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