Salina’s private-sector economy is playing a central role in the city’s strong tax revenue picture, according to information reviewed during the latest City Commission bond discussion and data included in the city’s 2026 budget.

During the bond sale process, city officials reported that Moody’s Ratings confirmed Salina’s Aa3 credit rating on June 3, 2026. The rating report cited several strengths, including Salina’s continued role as the regional economic hub of north-central Kansas, conservative budgeting and strong tax revenues.

Those strong revenues are largely tied to private-sector activity, including retail sales, commercial property values, manufacturing, logistics, health care, transportation and regional trade.

Sales and use tax remains one of the city’s most important revenue sources. According to the city’s 2026 budget, Salina’s city sales and use tax revenue is projected at $7.6 million for 2026, a 2% increase compared to 2024 actual collections. The city’s share of Saline County sales and use tax revenue is projected at $9.9 million, also a 2% increase compared to 2024 actual collections.

Sales and use taxes are generated through private transactions and collected by businesses before being remitted to the Kansas Department of Revenue. The state then distributes the city’s share back to Salina on a monthly basis.

The city’s property tax base has also continued to grow. The 2026 budget says Salina’s assessed valuation increased from $526.5 million in 2025 to $547.7 million in 2026, a 4.03% increase. That increase allows the city to generate slightly more property tax revenue even as the city’s mill levy decreased from 29.417 mills to 28.568 mills.

The city budget identifies Salina’s economy as diverse, with major sectors including aviation, technology, manufacturing, medical services, education and transportation. Several of Salina’s major employers and major taxpayers are private-sector companies, including manufacturers, utilities, retailers, logistics-related businesses and commercial property owners.

Salina’s position as a regional hub is also supported by its location at the intersection of Interstate 70 and Interstate 135, along with access to rail and air service. Salina Economic Development Organization describes the local economy as including large and small manufacturing operations, agriculture-connected industries, food processors, beverage makers and agricultural equipment manufacturing.

Recent private-sector development has added to that base. Amazon’s delivery station at the Salina Regional Airport began operations in October 2025 and was reported by the Salina Airport Authority to have generated 495 total jobs in its first five months, including on-site jobs, delivery partners and Flex drivers. The facility is located within the airport industrial area, which includes more than 125 businesses.

The Moody’s rating does not mean the city is free from financial pressure. City officials continue to evaluate debt, capital needs, infrastructure costs and long-term spending obligations. However, the rating reflects that Salina’s revenue base remains stable enough to support city borrowing for public projects.

The latest bond package includes financing for several projects, including road work connected to the new Amazon facility, five residential subdivision benefit district projects and financing related to the new fire station.

City officials said bids for the bonds were competitive, with six bids received. FHN Financial Capital Markets submitted the lowest true interest cost at 3.863334%.

For taxpayers, the rating matters because credit ratings can affect borrowing costs. A stronger rating can help a city receive more favorable interest rates when issuing debt for infrastructure and capital projects.

In Salina’s case, Moody’s rating points to a broader economic picture: city finances are being supported by conservative budgeting, growing valuation and tax revenue driven in large part by private-sector commerce, employment and investment.