Iola City Council members voted to exceed the Revenue Neutral Rate (RNR) and approve the 2025 budget of $35,080,498 at Monday evening’s council meeting. This results in a mill levy increase to the general fund by 3 mills from 46.418 to 49.477.
With the addition of the library fund’s 6.351 levy and the industrial fund’s 2.429 levy, the total mill levy will be 58.257 for 2025. One mill currently equals $35,992 in assessed valuation.
During the discussion, council member Joelle Shallah asked if there was an opportunity to reduce the levy by 1.5 mills.
City Administrator Matt Rehder said there is, but did not recommend doing so. “It would change our ending balance to be about $51,000 less than what we anticipate,” said Rehder. “The reason we are asking for an increase is to get to the end of the year in the positive.”
In terms of cutting the prosposed $51,000, Rehder said he didn’t know where they could make those cuts. “We could do what’s been done in the past where we look at the equipment that we purchase and put that off another year,” he said. “But again, that’s just going to add to expenses next year. It just pushes us back even further.”
Rehder noted there is a “light at the end of the tunnel” with the assessed valuation rate on property projected to increase even more. “It benefits us,” he said. “We’re in much better shape now than I thought we were going to be.”
With the current general fund’s mill levy at 46.418, Rehder added the goal is to eventually get it to 52 mills. He said the city is in year two of a three- or four-year process of getting it to that level of funding.
Council member Joel Wicoff asked if they increased the mill levy by 1.5 instead of 3, would that mean they would just have to increase it by more in the next year or two to get to the 52-mill goal.
“Yes,” said Assistant City Administrator Corey Schinstock. “We’d just be kicking the can down the road.”
The council chose to stick with the 3 mill increase and approve the 2025 budget, with Shallah being the only dissenting vote.
IN OTHER NEWS, Water Treatment Plant Superintendent Toby Ross answered questions concerning the sanitary sewer lagoon project. The public meeting was an effort to seek community input on alternatives for an upcoming lagoon project.
The $11.2 million project is a step toward addressing excess ammonia in the city’s lagoon system, an issue identified by the Kansas Department of Health and Environment (KDHE). To tackle the problem, the city engaged Burns & McDonnell engineering firm to assess the wastewater treatment plant and provide recommendations.
In May, engineer Trevor Cook recommended installing a NitrOx Reactor. The reactor is designed to reduce ammonia and the five-day biochemical oxygen demand (BOD5) in the liquid discharge flowing into the Neosho River. The system also includes an electrical/operational building, two 40-horsepower blowers, and a pump station.
“We used to monitor our ammonia levels on our own and do our own testing,” said Ross. “We now have limits to go by. We haven’t changed anything that we’re doing. It’s just that KDHE has finally put a limit on it.”
The improvements will possibly be funded by a loan through the low-interest State Revolving Loan Fund Program through KDHE. Rehder explained that in order to apply for the loan program, the city must hold a public meeting and a public hearing. “Tonight is the public meeting portion,” said Rehder. “The estimated timeline of the loan program begins with tonight’s meeting.”
