General Fund Overview
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Proposed Budget: $132,985,265 for FY2026, an increase of about 4% from $127,570,984 in FY2025.Agenda_2025_9_9_Meeting-1042.pdf
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Personnel Costs: $100,999,790, accounting for over three-quarters of the general fund—up 4.2% due to finalized union contracts and 3% COLA pool for non-union employees.Agenda_2025_9_9_Meeting-1042.pdf
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Non-Personnel Expenses: Increased by 4% (about $1.2M), largely from inflation.Agenda_2025_9_9_Meeting-1042.pdf
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Use of Reserves: One-time reserves will be drawn down, including the unassigned fund balance, to balance the FY2026 budget, with a plan to maintain a 15% minimum unassigned reserve.Agenda_2025_9_9_Meeting-1042.pdf
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Estimated Revenues:
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Sales Tax: $41.7M (projected 2.25% growth)Agenda_2025_9_9_Meeting-1042.pdf
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Ad Valorem (Property) Tax: $43.8M, with a 4.24% assessed value increaseAgenda_2025_9_9_Meeting-1042.pdf
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Franchise Fees: $16.2MAgenda_2025_9_9_Meeting-1042.pdf
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PILOTS, Fees for Services, and others fill out the remainder.Agenda_2025_9_9_Meeting-1042.pdf
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Projected Gap: $7.54M budget gap for FY2026 to be filled by reserves.Agenda_2025_9_9_Meeting-1042.pdf
Major Policy Actions
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Maintain Mill Levy: The property tax mill levy remains at 36.956, which is above the calculated revenue-neutral rate of 35.183.Agenda_2025_9_9_Meeting-1042.pdf
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Use of Reserves: General fund reserve projected to decrease to the 15% policy threshold for end-of-year balance.Agenda_2025_9_9_Meeting-1042.pdf
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Staffing Adjustments: Reduction of 19 FTEs from the 2025 budget and assumption of 21 FTEs held vacant to reduce personnel costs.Agenda_2025_9_9_Meeting-1042.pdf
Departmental Highlights
Police Department
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FY2026 Budget: $52.7M (a planned decrease from FY2025's $54.5M).Agenda_2025_9_9_Meeting-1042.pdf
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New Initiatives: Funding for a police staffing study ($150,000), Lexipol policy system ($40,000), addition of 6 civilian positions in specialty units, and removal of 11 positions.Agenda_2025_9_9_Meeting-1042.pdf
Fire Department
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FY2026 Budget: $37.3M (down from $38.8M in FY2025).Agenda_2025_9_9_Meeting-1042.pdf
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Adjustments: Replacement of critical equipment (air compressors), reduction of 2 FTEs, and planned vacancy credit for positions.Agenda_2025_9_9_Meeting-1042.pdf
Public Works
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FY2026 Budget: $7.6M from the general fund for departmental operations, plus capital outlays from special funds.Agenda_2025_9_9_Meeting-1042.pdf
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Projects: Pavement and bridge improvements, vehicle and equipment upgrades, and citywide maintenance goals.Agenda_2025_9_9_Meeting-1042.pdf
Utilities
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Water Utility: $62.3M, with major investments in infrastructure, treatment plant upgrades, and capital projects. 15% increase in chemical costs and 11% increase in utility expenses anticipated.Agenda_2025_9_9_Meeting-1042.pdf
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Stormwater Utility: $12.6M, focused on compliance, infrastructure replacement, and maintenance efficiency.Agenda_2025_9_9_Meeting-1042.pdf
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Wastewater Utility: $45.4M, emphasizes ongoing plant improvements, regulatory compliance, and increased biosolids processing.Agenda_2025_9_9_Meeting-1042.pdf
Human Resources / IT / Other Departments
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HR: $2.3M; focus on recruitment, job description updates, and training.Agenda_2025_9_9_Meeting-1042.pdf
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IT: $6.0M; enhancement includes a new cybersecurity director and expanded software investments.Agenda_2025_9_9_Meeting-1042.pdf
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Planning & Development: $3.9M; targets affordable housing and code compliance.Agenda_2025_9_9_Meeting-1042.pdf
Notable Budget Changes and Enhancements
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Fee Schedule Increases: Across multiple departments, projected to add $200,000 in revenue.Agenda_2025_9_9_Meeting-1042.pdf
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No General Fund Subsidy for Hotel Topeka: Saving $1.4M compared to prior budgets.Agenda_2025_9_9_Meeting-1042.pdf
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Non-Departmental: Increase to $15.6M, mainly to cover IT/facilities allocations, prisoner care, social service grants, and other citywide expenses.Agenda_2025_9_9_Meeting-1042.pdf
Major Funds and Balances
| Fund | 2025 Ending Balance | 2026 Ending Balance (Proj.) |
|---|---|---|
| General Fund | $23,028,432 | $19,975,720 |
| Special Highway Fund | $188,836 | $0 |
| Water Utility | $15,721,730 | $14,054,172 |
| Wastewater Fund | $20,744,099 | $19,752,344 |
| Stormwater Utility | $4,575,626 | $4,038,213 |
| Sales Tax Maint. | $34,759,722 | $27,738,979 |
Agenda_2025_9_9_Meeting-1042.pdf
Revenue & Tax Summary
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Tax Revenue Breakdown (2026 est.):
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Sales Tax: $86M
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Ad Valorem Tax: $64M
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Motor Vehicle Tax: $5M
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Transient Guest Tax: $3M
Agenda_2025_9_9_Meeting-1042.pdf
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Top Taxpayers: Evergy Kansas Central Inc. / Westar ($91.7M assessed value), followed by Kansas Gas Service, Target Corp., and others.Agenda_2025_9_9_Meeting-1042.pdf
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Top Employers: State of Kansas (10%+ of city jobs), Stormont-Vail, Hills Pet Nutrition, USD 501, Blue Cross.Agenda_2025_9_9_Meeting-1042.pdf
Summary of Risks and Considerations
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Budget Sustainability: The City is using one-time reserves to close the FY2026 gap; future years will require either new revenues or expense cuts to avoid a projected $13M deficit in FY2027.Agenda_2025_9_9_Meeting-1042.pdf
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Inflation Pressures: Personnel costs and health insurance premiums are increasing.Agenda_2025_9_9_Meeting-1042.pdf
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Special Highway Fund: Present structural deficit addressed by $2M transfer; not sustainable long-term.Agenda_2025_9_9_Meeting-1042.pdf
Public Hearing & Adoption Timeline
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Public Hearing: Scheduled for September 9, 2025 at City Council Chambers.Agenda_2025_9_9_Meeting-1042.pdf
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Adoption: Possible final vote on September 16, 2025.Agenda_2025_9_9_Meeting-1042.pdf
All references are drawn directly from the "City of Topeka 2026 Proposed Operating Budget"—including detailed department presentations, fund tables, City Manager's letter, and supporting legislative resolutions and notices.Agenda_2025_9_9_Meeting-1042.pdf
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