City commission sets 6.27% property tax increase for average homeowner

The total budget for 2024 is $226.27 million, up from the 2023 total budget of $188.95 million, a difference of $37.32 million.

The commissioners also voted on a mill rate of 49 for 2024.

A mill is $1 in tax for every $1,000 in assessed, taxable property value.

The 2024 rate is lower than the previous year, but it will still mean an increase in revenue for the city and in taxes for property owners because of the increase in property values.

That means the owner of a $100,000 property would have paid $599.73 in city taxes in 2023; that same person would pay $637.32 on a home now valued at $113,100 in 2024, given the average increase of 13.1% for existing single-family homes.

That’s $37.59 more in taxes, for an increase of 6.27%.

The commissioners voted 3-1 to set the new rate at 49, with commissioner Linda Morse voting no.

The city’s previous draft had called for a mill rate of 50.47 mills.

The rate that would have been “revenue neutral” for the city is 47.61.

The state requires city governments to have a public hearing and vote if they intend to exceed that rate.

“We have to exceed the ‘revenue-neutral rate’ simply because it can’t stay flat,” commissioner Wynn Butler said. “It doesn’t account for inflation.”

Mayor Mark Hatesohl said the problem starts with the state of Kansas.

Hateshol pointed out that Kansas doesn’t generate tourism like Florida and California, and doesn’t create jobs like Texas and Oklahoma do with the oil industry.

“Here, locally, part of the problem with the revenue neutral thing is that as long as there’s going to be a cost of living adjustments in the police department, the library and the city, there’s going to need to be a certain increase in wages in order to keep people,” Hatesohl said. “There’s going to be taxation, whether that’s property or if we can generate enough sales tax through nifty things like more home football games, apparently stampedes, some kind of thing.”

The budget calls for a $1.9 million increase in property taxes for “outside” city services and city services in general.

The city estimates that 1 mill will be worth $694,292.

Deputy city manager Jason Hilgers said the commission should approve the rate because property tax is a reliable source of income for the city.

“Capturing growth in your community via mill levy is a very accepted and widely practiced approach,” Hilgers said.

Morse voted with the other three commissioners to exceed the revenue-neutral rate, but she didn’t give a reason for voting “no” to a mill rate of 49.

Moving forward, the city can lower the rate but not exceed it. The deadline for submittal is Oct. 1.