The 2026 Kiel City Budget could include increases in its debt service and general fund.
City Administrator Dave Funkhouser explained that the 43% increase in the debt service happened because of borrowing done for projects the city did this year.
However, the city’s general fund increased 64% or by $364,000 because of property sold in the city.
Kiel is also increasing its tax levy from about $1.6 million to $1.9 million, but the city has also reached over $500 million in equalized value by increasing over $28 million.
Funkhouser says another area that’s going down is the city’s capital overlay for capital borrowing projects.
It was $178,000 in 2025 and will go down to $152,000 in 2026.
Funkhouser explained that some of the projects include, “A heavy equipment truck for the DPW, which will also be shared by utilities, significant repair work at the Hingiss Park Shelter in the parks budget. And then also significant trail repair work to our city’s beautiful walking trail. It also includes a replacement squad car and mobile unit for the police department and repairs and painting for the fire department.”
Funkhouser explained that he’s proud of what was done in 2025 and that the City of Kiel believes that safety and security remain a high priority.
Included in this year’s budget were multiple safety projects.
“New open records software for the police department, they handled that workload there,” he listed. “We have new cameras and electronic locks to be installed at City Hall. Brand new fire engine, new motor for the utilities and public works. Repairing the elevator at city hall, an excavator, electronic control devices, a public safety drone program, online municipal code system, which everybody who’s used it has been raving about.”
Kiel’s general government disbursements are also up this year by 9% due to a new court clerk position at city hall, as well as more money set aside for the upcoming 2026 election.
The city council did not fully approve the budget, but could at a future meeting.
