Salina Developing Expanded Water-Line Replacement Plan; Tax and Rate Options Under Review

The City of Salina is developing a broader plan to increase water-line replacement work, with city officials saying utility rates, property taxes and a possible future sales-tax proposal could all be considered as funding options.

The issue came up Monday during the Salina City Commission’s review of the city’s five-year Capital Improvement Plan.

The city’s current financial plan includes $4 million for water-line improvements every other year. Finance Director Debbie Pack said that amount remains in the proposed capital plan for now, but could change as the city continues evaluating water rates and long-term infrastructure needs.

During the discussion, commissioners questioned whether the city is investing enough in water-line replacement. One commissioner suggested the city may need to significantly increase the amount currently being spent and identified water infrastructure as a higher priority than some other proposed capital projects.

City Manager Jacob Wood said staff is already working on a plan to expand water-line replacement efforts.

Wood said the city has several potential ways to pay for additional work, including increases in utility fees, additional property-tax funding or sales-tax revenue. A sales-tax increase would require voter approval. Additional property-tax funding could require a future property-tax increase, depending on how much additional work the city decides to undertake.

The city cannot increase its property-tax request as part of the current budget process because the proposed levy has already been submitted to Saline County. Wood said the city could still lower the amount, but cannot increase it at this stage.

Wood said staff expects to bring a more detailed water-line replacement plan to the commission in approximately one to two months.

For now, the proposed Capital Improvement Plan continues to show $4 million in water-line improvements in alternating years, including 2027, 2029 and 2031. City officials emphasized that the long-range capital plan is a working document and can be adjusted as priorities and funding conditions change.