Holton commission favors 3-mill property tax increase

Property owners in Holton are looking at a proposed 3-mill increase in the city’s property tax levy to fund the city in 2017, an increase the Holton City Commission noted was less than one recommended earlier in the city’s annual financial audit.

During the commission’s regular meeting on Monday — which marked the official beginning of Kerwin McKee’s time as Holton City Manager — commissioners approved a 57.563-mill property tax levy for 2017 based on the city’s valuation of $19,767,947.

The city’s 2016 property tax levy was 54.561 mills, based on the city’s valuation of $19,523,245 for the year.

Commissioners also set a public hearing for 7 p.m. Monday, Aug. 15 on the proposed 2017 budget, a copy of which may be found on Page 10 of today’s Holton Re­corder. The hearing will be held prior to the commission’s next regularly-scheduled meetiing.

The 3-mill increase was about half what was recommended by Leavenworth accountant Mike Peroo in his report on the city’s fi­nancial audit in July.

Peroo rec­ommended a total levy of 60.649 mills in order to keep the city’s spending authority for 2017 at the same level as the past two years, and to al­low for some inflation.

For the owner of a house valued at $87,900 — the amount deter­mined as the median home value in the city — Peroo’s suggestion would have had the owner paying an extra $62 in property taxes for the year, or $613 overall.

With the 3-mill increase, however, commissioners noted, that owner would pay just $30 more for the year, or $581 overall.

McKee presented commissioners with a “mill levy matrix” for 2017, showing commissioners how prop­erty tax levy increases between one and five mills would affect prop­erty owners, as well as how much the city would have to cut its gen­eral fund spending for the year.

A 1-mill increase, he noted, would mean the city would have to cut $101,460 in spending, while a 5-mill increase would reduce that cut to $22,388.

If approved, the 3-mill increase, commis­sioners learned, would result in a spending cut of $61,924, which would mean the city would likely move money out of its utility funds and into the general fund to cover the cut. However, McKee cau­tioned against moving too much money out of the utility funds lest the city take a look at raising its utility rates.

Moving parts of those utility funds into the general fund is one way the city has managed to keep an average tax levy of 54.3 mills over the past six years, McKee re­minded commissioners. But it has not allowed the city to keep up with inflation rates, and Commissioner Mike Meerpohl initially recom­mended going with Peroo’s original recommendation.

Commissioner Tim Morris, on the other hand, said he wanted the 2-mill increase option, even though he “could be talked into” the 3-mill increase.

“I won’t support anything over three mills,” Morris said, prompt­ing the other commissioners — Meerpohl, Dan Brenner, Twila White and Mayor Robert Dieck­mann — to express similar senti­ments. Morris’ motion to go with the 3-mill increase was seconded by Meerpohl and passed unani­mously.

Total local taxes to be levied with the new proposed budget are estimated at $1,137,917, up from $1,068,615 last year.

In other business, commissioners voted to finalize McKee’s contract as city manager, a position he offi­cially took over on Monday. McKee accepted the commission’s offer of the post on July 18 after serving as acting city manager fol­lowing the departure in June of former city manager Bret Bauer and as assistant city manager dur­ing Bauer’s time with the city.

Under terms of the three-year contract, effective Monday, McKee will receive an annual salary of $65,000. It had been reported ear­lier that McKee was earning an an­nual salary of $56,888 as assistant city manager, while Bauer’s annual salary at the time of his departure was $73,798.

City Clerk Teresa Riley later said the city plans to hire a new codes enforcement officer, which was the position McKee held before being named assistant city manager.

McKee was also appointed to fill Bauer’s position as the city’s repre­sentative to the Kansas Municipal Energy Agency board of directors.

Commissioners also:

• Approved minutes from the commission’s July 18 meeting.

• Approved budget appropria­tions made since the July 18 meet­ing.

• Heard a comment from Meer­pohl on preparation work for chip­sealing the parking lot at Country­side Park.

• Heard an update from Meer­pohl on the continued demolition of a residential structure at the John Zibell property at 1003 Kansas Avenue. The city declared the structure a public nuisance earlier this year and gave Zibell an Aug. 16 deadline for demolition of the structure.

• Heard a request from Brenner for the placement of new signs at the Linscott Park tennis court or­dering park visitors to keep wheeled vehicles off the recently-resurfaced tennis court.

• Were reminded by McKee that the city has all the necessary per­mits in place for construction of the dog park near Countryside Park, but the city is focusing on street maintenance and repair at the pre­sent time. McKee added that work on the dog park will “get going” this fall.

• Heard a comment from Bren­ner about the need to increase monitoring of U.S. Highway 75 for speeders.

• Heard a recommendation from Dieckmann to look into the pur­chase of a water slide for the city’s swimming pool.

• Were reminded by Dieckmann that U.S. Sen. Pat Roberts would host a town hall meeting at 10 a.m. Thursday, Aug. 11 at City Hall.

• Heard a suggestion from Holton businessman John Chiles that the 400 block of New Jersey Avenue be made a two-way street now that Central Elementary School has been closed. The street is currently a one-way south route.

• Heard a comment from Chiles suggesting that the city and Jackson County possibly team up to pur­chase the former Ron’s IGA building for use as a community center. The former grocery store was scheduled for sale at auction this morning, it was reported.

• Adjourned the meeting at ap­proximately 7:55 p.m.