Each spring, the City of Salina evaluates its long-term financing needs for capital projects that are completed or nearing completion. A series of actions by the City Commission over the past several years has shaped funding for the replacement of Fire Station No. 4.

On Jan. 3, 2022, commissioners approved Resolution No. 21-8009, adopting the city’s 2022–2026 Capital Improvement Program, which included $500,000 for the design of a new fire station to replace the existing Fire Station No. 4, to be funded through general obligation bonds.

The project advanced on Feb. 14, 2022, when the commission adopted Resolution No. 22-8019, authorizing construction of the new station and the issuance of general obligation bonds not to exceed $5 million. The following year, on Feb. 6, 2023, Resolution No. 23-8103 incorporated $4.5 million for construction in the 2023–2027 Capital Improvement Program, again funded by bonds.

On Feb. 26, 2024, commissioners approved Resolution No. 24-8192, increasing the authorized general obligation funding for the project to $11 million.

During the 2026 budget process, city staff outlined options for using the General Fund balance, which stood at approximately $33.9 million at the end of 2024. One option proposed using cash from the General Fund to cover part of the fire station project instead of issuing additional debt. Commissioners directed staff to include a $5 million transfer from the General Fund in the 2026 budget for that purpose.

However, unexpected and higher-than-anticipated expenses, along with lower-than-expected revenues in 2025, reduced the projected year-end General Fund balance to just over $26 million. Early estimates indicate the balance could decline to about $19 million by the end of 2026 after accounting for the $5 million transfer.

Staff now estimates the total cost of the Fire Station No. 4 replacement at approximately $9.1 million. Under the preferred financing approach, current property tax revenues are expected to support the necessary debt service without increasing tax rates, while maintaining the General Fund balance above the city’s $15 million target.

The City Commission voted unanimously, 5–0, to approve Option 1, as seen in the table. Bond issuance planned for June 8, 2026, will be adjusted accordingly, with general obligation bonds backed by property taxes used to permanently finance the project.