Topeka discusses projected $3.2m Special Street Fund deficit

TOPEKA (KSNT)—The City of Topeka is discussing using its sales tax initiative and the General Fund to address a projected Special Street Fund deficit.

The City of Topeka Policy & Finance Committee heard from Budget Manager Carissa Miller that the city is projecting a deficit of $3,239,937 in 2026 for the Special Street Fund during a meeting on Tuesday, March 25. Miller attributed the deficit to rising expenses and flat revenue.

Due to a high vacancy rate of 35%, the city raised employee pay from $15 an hour to $20 an hour in 2023 to help retain workers. Miller reported the vacancy rate dropped to 15% in 2024 but the city also saw more expenses with the higher wages.

The Special Street Fund is used to make repairs, do minor construction and alterations and for maintenance like snow removal and street sweeping. Miller said that personnel costs make up 55% of the fund’s expenses with 26% making up contractual obligations and 19% for commodities like office supplies and tools.

Miller gave two options to increase the revenue: subsidize it using the General Fund or expand the city sales tax initiative. Another option Miller mentioned was reducing services but noted it could impact pothole repair, increase blight and increase the time to clear streets in snow events.

Public Works Director Steve Groen said the most likely impact to reducing services would be less staff to address projects across the city.

“The fact that we’re fully staffed this winter is a tremendous benefit when we’re getting all these snow events but if we end up losing staff because of budget reasons, well then that’s fewer trucks on the road, lower response time,” Groen said.

City Communications Director Dan Garrett said the discussions involved initial projections. He said there is more work ahead and the city plans to continue discussions and refine the projections.

"At this time, no final numbers have been confirmed, and we will share more concrete projections with the public once they are available," Garrett said.

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