ELLY GRIMM
• Leader & Times
Finances were a hot topic for the Liberal City Commission at its most recent meeting Tuesday evening.
One of those finance-related items concerned the Revenue Neutral Rate on the City of Liberal side.
“The City of Liberal was notified by Seward County in June that the 2026 Budget Revenue Neutral Rate was 43.275 mills. Through our 2026 budget discussions, we anticipate that our budget will include 50.367 mills,” Liberal City Manager Scarlette Diseker said. “As the commission will recall, Resolution No. 2434 was adopted July 8 with our intent to levy a property tax in excess of the Revenue Neutral Rate. The Seward County Clerk was notified of our intent July 9. The 2026 Notice of Hearing to Exceed Revenue Neutral Rate was published in the High Plains Daily Leader and Times Aug. 14. The City's 2025 budget included 49.473 mills (final amount of 50.367 mills based on valuations) with a total tax levy of $6,932,800. The 2026 budget includes an estimate of 50.367 mills with a tax levy of $8,131,453.73. Due to the increase in 2026 valuations over that of 2025, an additional $1,198,654 of property tax dollars would be generated at the 50.367 mill rate. The quantity of estimated 2026 mills is subject to change, dependent upon the final assessed valuation set to come out in November. We anticipate, through final budget talks, to land somewhere between RNR and last year's final number of mills, which will add increased valuation dollars without exceeding the previous year's number of mills. And we should know how that ends up within a week or so when we have the budget work session. But we do not anticipate setting more mills than last year.”
Ultimately, the commission approved the resolution by a margin of 4-0, with Commissioner Janeth Vazquez absent for the vote.
Also on the commission’s agenda was discussion of the city’s 2024 audit and 2025 audit contract.
“The 2025 Audit will, once again, waive GAAP in favor of KMAAG via a resolution at the end of the year,” Diseker said. “Hard copies of the 2024 audit will be made available to all Commissioners, and the publishing notification will be made in the High Plains Daily Leader & Times Aug. 28. This informs citizens of the audit being available at the city clerk's office at City Hall.”
Dustin Ormiston from Hay, Rice & Associates then gave an overview of the audit work to the commission.
“With our opinion on the audit of the financial statements, we have an unmodified opinion on the regulatory basis of accounting,” Ormiston said. “There’s a mention of ‘Adverse Opinion on U.S. Generally Accepted Accounting Principles,’ and that is required by GAAP to say the financial statements are not in accordance with GAAP due to the City of Liberal opting to do the regulatory basis as prescribed by the State of Kansas. Under that, we have an unqualified opinion, which is the highest level of opinion, and that basically states we feel the financial statements accompanying this report are materially correct. Included in the report is the summary statement of receipts, expenditures and unencumbered cash – regulatory basis for the year ended December 31, 2024, and that shows the fund balances at the beginning of 2024, the receipts of each of the respective funds and expenditures, and then the ending encumbered cash balance funds. This report also includes notes to the financial statements, disclosures relating to the operations of the City of Liberal, debts, KPERS, and other notes required by financial standards.”
Ormiston then continued with his presentation of the audit.
“This report also includes the financial statements on a budgetary basis, and that’s where we compare actual expenditures and revenue of each of the respective funds and then compare that to what was budgeted by the City of Liberal in the previous year,” Ormiston said. “Later on, you’ll see the Report on Internal Control Over Compliance, which is our report on each major program and required by the uniform guidance. These are the reports related to the federal money received, and the City of Liberal is required to have what is referred to as a single audit any year in which more than $750,000 is expended. A lot of that sometimes comes from the state but is traced back to the federal government, and most years, you’ll have that since there’s the airport. The airport itself gets enough federal funding that it gets the city above that $750,000. That requirement is still in place for 2025, but in 2026, that will be increased to $1 million.”
After some more brief discussion, the commission ultimately approved the audit by a margin of 4-0, with Vazquez absent. After that vote, the commission then moved on to discussion of the 2025 audit contract, which was also approved 4-0.
“I do want to thank Scarlette and the City of Liberal team, everyone has been very easy and wonderful to work with,” Ormiston said. “They’ve been very responsive to any suggestions we’ve had, and we always have quite a few as we go through this process every year, so we’re grateful to know they’re receptive to all of that.”
In other new business, the commission approved Resolution No. 2438 concerning an application for the Water Project Funds Grant and accepted the dedication of the 1200 block of South Lincoln Avenue; 1200 block of Sinanche Avenue; the 100 & 200 block of McCray Boulevard.; and Linn Court for the Ortuño Housing Addition, with maintenance responsibilities transferring from O.C. Quality Custom Homes to the City of Liberal. The commission also approved the purchase of 17 well meters and 300 1” meters in an amount not to exceed $275,000 and the purchase of firearms, holsters, and training aids for the Liberal Police Department in an amount not to exceed $50,000. To conclude the meeting’s new business, the commission approved the appointment of Kathleen Alonso to the Liberal Memorial Library Board.
