2027 Budget Preparation

In August, the Newton City Commission adopted the 2027 City budget that lowers the property tax rate, or mill levy, by about 1.5 mills in 2027. The $66.8 million budget includes:

• No new positions at the City.
• A 7.6% increase in wages and benefits to continue implementing a classification and salary study completed in 2025 that sets employee compensation at 60% of the market rate to stay competitive.
• An increase of $42,994 for Newton Public Library, which sets its own budget and tax rate.
• An increase of $29,000 to fund the City/County Airport. The City will continue discussions with the Harvey County Commission about equitable future funding of the airport. The City currently funds $121,000 and the County $90,000.
• Funding of external City partners: Newton Area Chamber of Commerce ($35,000), Harvey County Economic Development ($142,275), Health Ministries Clinic ($40,000), Newton Area Senior Center ($25,000), Safehope ($12,000) and Heart to Heart Child Advocacy Center ($8,000).
• No transfers from the utility funds to the General Fund for property tax relief. In the past, about $1.2 million total was transferred each year from the Water, Wastewater and Sanitation Funds.
• A projected drawdown of about $2.2 million in reserve funds.

The Commission also decided to start passing along credit card processing fees to the customers who use cards rather than absorbing those costs. That will amount to about $260,000 in cost savings for the City at large.

Even with the mill levy reduction, the City will exceed the Revenue Neutral Rate for 2027, the tax rate that would generate the same amount of revenue as generated in 2026. To remain within the RNR, the City would need to lower its mill levy by 2.945 mills. That’s because Newton’s assessed valuation rose by about 4.25% for next year because of new development and rising property values. 

Budget Meetings

• June 17, 2026, Work Session Video
• June 17, 2026, Presentation(PDF, 2MB)
• June 18, 2026, Work Session Video
• June 18, 2026, Presentation(PDF, 1MB)
• July 28, 2026, Work Session Video
• July 28, 2026, Presentation(PDF, 4MB)
• Aug. 6, 2026, Work Session Video
• Aug. 6, 2026, Presentation(PDF, 2MB)

Budget Materials

• Budget Sheets(PDF, 1MB)
• Capital Improvement Plan(PDF, 87KB)
• Municipal Equipment Reserves All Funds(PDF, 68KB)
• Sales Tax for Economic Development(PDF, 267KB)
• Sales Tax for Infrastructure(PDF, 311KB)
• 2027 Newton Public Library Budget(PDF, 128KB)
• Airport Budget detail(PDF, 71KB)
• Bond and Interest Forecast CIP(PDF, 73KB)

Budget Process Timeline

• June 17-18: Budget work sessions
• July 28: Budget work session
• July 14: Send intent to exceed Revenue Neutral Rate to County Clerk
• July 28: Budget work session
• Aug. 6: Budget work session
• Aug. 11: Set maximum budget for publication
• Aug. 25: Hold RNR and budget public hearings, approve resolution to exceed RNR, and adopt budget