2027 City Budget Planning Begins: Proposal Includes 1.5% Cost-of-Living Raise, Up to 1.5% Merit Increase
The Salina City Commission is beginning its early review of the city’s proposed 2027 budget.
A budget study session was scheduled for Monday, June 1, with city staff presenting preliminary financial information, personnel assumptions, department operating budget requests and fee information.
According to the city’s 2027 budget presentation, the proposed General Fund currently shows $59,052,765 in revenues and $59,981,009.61 in expenditures. That creates a projected General Fund shortfall of $928,244.61 at this stage of the budget process.
The presentation lists a projected beginning General Fund balance of $20,793,101.04 and a projected ending fund balance of $19,864,856.43.
The proposed 2027 General Fund revenue estimate is up about 1.17% compared to the 2026 budget. Proposed expenditures are down about 5.78% compared to the 2026 budget, largely reflecting a significant reduction in interfund transfers from the prior year.
The proposed budget includes personnel assumptions of a 1.5% cost-of-living adjustment for all employees effective Jan. 1, 2027, along with a maximum 1.5% merit increase based on employee anniversary dates. The presentation notes that health insurance costs are still to be determined and that the current proposal does not include requests for additional staffing.
The city’s revenue assumptions include projected property tax revenue of $12,980,365 in the General Fund and projected sales and use tax revenue of $19,490,000. The presentation also shows $6,188,000 in interfund transfer revenue.
The proposed 2027 budget also includes $1.4 million in one-time transfers, including money from Sales Tax Capital for tax stabilization, debt service, buildings and facilities, and Kenwood Cove. The presentation also notes an ongoing increase in the base tax stabilization transfer from Sales Tax Capital to the General Fund, rising from $1 million to $1.2 million.
The budget remains in the early review stage. City officials are expected to continue budget discussions before any final budget is adopted.