State tax lid weighs heavy on city, county budgets for 2017
It’s budget season for area municipalities, and many city councils and commissioners are considering the implications of the future state Legislature imposed tax lid as they prepare their proposed budgets for 2017.
During the recent Kansas Legislative session, lawmakers passed a bill to implement a new tax lid on county and city spending sooner than expected.
Starting Jan. 1, 2017, county and city governments will not be able to levy property tax dollars beyond the rate of inflation or Consumer Price Index without voter approval.
There are several exemptions, however, that lawmakers believe will allow for some flexibility, including expenses relating to a disaster or emergency, funds used exclusively to increase law enforcement, fire and emergency services and expenses specifically mandated by federal or state law.
Prior to the bill passing, the Jackson County Commissioners expressed to District 61st Representative Becky Hutchins that the new law would force the county to go into debt in order to purchase expensive road equipment and unexpected insurance hikes.
The tax lid, county commissioners say, would not allow them to save for larger purchases and would also require them to seek a public vote to purchase road rock and equipment or to allow them to raise employee wages.
Jackson County Clerk Kathy Mick previously stated that it would be difficult for cities and counties to meet election and budgetary deadlines set by the state now that the bill has passed.
Mick said if the county would try to get a property tax question on an August ballot, the county would have to move its budgetary process up by two months.
A special city or county tax question could be added to any August or November election ballot, she said.
A special mail-in election could also be conducted at the municipality’s expense, which would include mailing a ballot to each voter and providing an envelope and postage for that ballot to be returned, according to Mick.
In preparation for next year’s tax lid, many municipalities are increasing their budgets this year in order to make purchases they might be unable to make with the tax lid’s imposing revenue restrictions.
The cities of Netawaka and Whiting both published proposed 2017 budgets in The Holton Recorder last week. Netawaka has proposed a 7.45-mill increase, and the Whiting City Council has proposed a 1.25-mill increase.
The proposed budget for Netawaka includes 20.910 mills, up from last year’s 13.455 mills. In 2015, the city’s mill levy was set at 13.676.
The city is requesting a total tax revenue of $267,294 for 2017, and $99,897 of that amount will go to the city’s general fund. The assessed valuation of Netawaka increased from $619,541 to $638,824 this past year. In 2015, the city’s assessed valuation was set at $592,064.
A budget hearing has been set for 7 p.m. Aug. 1 at Netawaka City Hall. The hearing is open to public comment.
In Whiting, city council members are proposing 8.759 mills for 2017, which is up from last year’s 7.509 mills. In 2015, the city’s mill levy was also set at 7.509 mills.
The total tax revenue budgeted is $106,500 for 2017, which is divided between the general fund ($49,100), water ($36,600) and wastewater ($20,800).
The assessed valuation of Whiting increased slightly this past year from $875,938 to $879,943.
The city council has set a hearing for the budget at 7:30 p.m. Aug. 9 at the city hall. Detailed budget information will be available at the meeting for interested members of the public.
Neither Netawaka nor Whiting has any outstanding indebtedness, it was reported.
City residents can voice their opinions and concerns for a proposed budget during, or prior to, the budget hearing for consideration, but many people rarely attend the public hearings.
