Rempp Questions $5 Million Set Aside for River Project as City Seeks Property Tax Increase

Salina City Commissioner Doug Rempp raised the possibility Monday of moving $5 million previously set aside for the Smoky Hill River Renewal Project back into the city's general fund as commissioners considered the 2027 budget and a proposed increase in the city mill levy.

The discussion came as the City Commission considered a proposed 2027 mill levy of 29.568 mills, one mill above the city's current rate of 28.568 mills and above the revenue-neutral rate of 27.526 mills.

Rempp pointed to $5 million previously transferred from the general fund for the river project and questioned whether the city should reconsider that money as it considers collecting additional property tax revenue.

“Apparently we have $5 million extra lying around last year that we moved to the river renewal project,” Rempp said. “Things have changed. Is there no consideration for bringing any of that back?”

Rempp said he was not necessarily opposed to the river project but questioned the city's priorities as it considers its budget.

“I’m not against what was, I think, billed as a scaled-down river project,” Rempp said. “I have friends that are Friends of the River, but I also want to be friends with the taxpayers.”

City Manager Jacob Wood confirmed the $5 million has not been spent and remains set aside for the river project.

“We haven’t expended that money yet,” Wood said. “It is just set aside for the river project.”

Wood said commissioners could decide at a future date to move the money back.

“If we wanted to move that money back to the general fund, that certainly would be an option,” Wood said.

The city has previously said the $5 million was transferred from the General Fund during the 2024 budget process to support the River Renewal Project.

The discussion comes as the city considers a property-tax levy above the revenue-neutral rate.

Wood said staff previously presented commissioners with several options for the 2027 budget, including remaining revenue neutral, maintaining the existing mill levy or increasing the levy by one mill.

Commissioners previously directed staff to prepare the budget using the one-mill increase.

Wood said remaining at the revenue-neutral rate would have initially resulted in an estimated $700,000 budget shortfall.

Under the proposed one-mill increase, Finance Director Debbie Pack said the general fund is still projected to have expenses exceeding revenues by approximately $159,000. City officials noted that actual expenditures frequently come in below budgeted amounts.

Wood said property taxes provide the city with a more stable revenue source than sales taxes, which can fluctuate from year to year.

He also said city departments were instructed to keep their operational budgets essentially flat for 2027 despite increasing costs.

“Even though we’re going to pay more for fuel likely in 2027, that just means we have to tighten our belt in different areas across the board,” Wood said.

Rempp responded that residents may have a different view of what constitutes tightening the city's budget.

“I think the community as a whole has a different opinion on tightening the belt versus the city tightening the belt,” Rempp said.

Wood confirmed the City Commission could reconsider the allocation and move the money back to the general fund in the future.