City Budget

The City budget is a continuous process throughout all 12 months of the year. Each department makes a diligent effort to control expenses without diminishing services provided to the citizens in our community.

Expenditures are authorized by a budget approved by the City Commission as required by Kansas Statutes. Kansas Statute Annotated 79-2929 requires a 10-day official notice be published and a public hearing be held before the City Commission before adopting the budget. Once the budget is adopted, the ad valorem tax to be levied is then certified to the Harvey County Clerk on or before August 25. (K.S.A. 79-1801)

Budgetary Control

The Kansas Cash Basis and Budget Laws require cash to be on-hand before expenditure is authorized, that all expenditures are budgeted, and that the budget not exceed anticipated revenues including carry-forward balances.

Key Budget Considerations

  • Federal and State-mandated improvement costs and programs.
  • Debt obligations of the City for streets, water and sewer utility systems, bridges, drainage and facility improvements.
  • Current services provided to citizens and associated costs.
  • Reduction of State Revenue Sources in upcoming budgets.
  • Benefits/Costs of prior City Commissioners' commitments in projects. 

2026 Budget

The adopted 2026 budget keeps the property tax rate flat. The $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.

2027 Budget

The City Commission adopted the 2027 budget in August. 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.

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