Decisions made by the Kansas Legislature continue to eliminate traditional, once reliable sources of revenue for the Unified Government and burden local taxpayers with added expenses. Despite positive improvements in the overall economy and major new developments in Wyandotte County, the Unified Government is losing tens of millions of dollars to pay for police, fire, streets and others services and programs because of the Kansas Legislature.
Despite those financial pressures, the 2015 Proposed Budget unveiled by County Administrator Doug Bach does not increase the Unified Government property tax rate. The total KCK city and Wyandotte county property tax mill levy will remain at the current 82 mills.
"This budget proposal recommends a path to confront the difficult budget challenges facing the Unified Government next year, while still addressing many of the strategic goals and budget guidelines directed by the Unified Government Commission," Bach said.
The budget proposal recommends increasing the Wyandotte County property tax rate by 2 mills, while lowering the KCK City property tax rate by 2 mills. This action keeps the overall Unified Government tax rate at its current level of 82 mills, but creates more financial stability in the county budget and equitably shares the costs of countywide services among all Wyandotte County residents.
But during the first budget workshop Monday, the Commission instead voted to raise the county tax rate 2 mills and the city rate 2 mills, potentially taking the total UG property tax rate from 82 mills to 86 mills. That move gives the Commission more leeway in shaping what will be the final budget. The Commission can still lower the mill levy but can't increase it beyond the 86 mills.
A mill is $1 in tax for every $1,000 of assessed value on the property being taxed.
The Proposed 2015 Unified Government Budget recommends total expenditures of $295,817,522. The City general fund is budgeted at $136,374,355. The County general fund is proposed at $51,922,400.
Even with a 2 mill increase in the county tax rate as proposed by Bach, Wyandotte County would still have one of the lowest county property tax rates in Kansas. Wyandotte County ranks 96th out 105 Kansas counties. Only nine counties out of 105 have a lower county property tax.
The Unified Government receives only 45% of the total tax bill paid by a resident in the KCK School District. In the Turner School District it's 42% and in the Piper School District it's 47%. Public schools, the Kansas City Kansas Community College, KCK Public Library and State of Kansas make up the largest portion of the tax bill-from 58% to 53% depending on the school district.
The current Unified Government property rate is still much lower than before the city and county consolidated in 1997. Back then it was 97 mills. Today it's 82 mills. That's 16% less than a decade and a half ago.
The decision in 2006 to eliminate the property tax on industrial machinery and equipment is costing the Unified Government $10-million a year in revenue. Since 2006, Wyandotte County has lost $130-million in assessed value from machinery and equipment. The decision to eliminate the machinery and equipment tax, while positive for business, continues to take a devastating toll on Unified Government revenues.
This year, the Kansas Legislature, pressured by community bankers and realtors, eliminated the mortgage registration fee which has been in place since 1925, shifting a financial cost from banks and homebuyers who take out mortgages, to all property taxpayers. The Unified Government will lose an estimated $500,000 in 2015 with annual losses growing to an estimated $1.8-million in five years.
While both measures passed overwhelmingly, the entire Wyandotte County Legislative Delegation opposed repeal of the Machinery and Equipment tax in 2006 and elimination of the Mortgage Registration Fee in 2014.
2015 Proposed Unified Government Budget Highlights
- The 2015 Proposed Budget does not call for major reductions in basic services.
- Continues the Commission Neighborhood Infrastructure Program (CNIP).
- Funds TV broadcasts of all Unified Government Commission meetings on UGTV.
- Spends $1-million for installation and operation of the new Countywide Emergency Radio system.
- Absorbs the operating costs of expanded transit routes.
- Funds studies of Public Safety operations to help determine additional efficiencies.
- Funds an employee compensation study.
- Recommends several initiatives to improve customer service.
The full 2015 Proposed Budget Message from County Administrator Doug Bach, the budget PowerPoint presentation and the complete 2015 Proposed Budget document are available on the Unified Government website at www.wycokck.org.