By BECKY KISER
Hays Post
The city of Hays is not interested in supporting a sales tax ballot requested by Hays USD 489 to offset a proposed $94 million bond issue for school district facility improvements.
Superintendent Dean Katt, along with school board members Lance Bickle and Sarah Rankin, and Dustin Avey of Piper Jaffray, the school district’s financial adviser, presented four funding scenarios during Thursday night’s city commission work session.
Avey explained how each proposal would use a city sales tax or a special tax to help pay off a 20- or 25-year bond issue early, saving millions of dollars in interest. The tax increase, as well as the bond issue — which would raise property taxes — would have to be approved by voters.
Nearly 60 percent of the monies would be used for safety and security improvements, deferred maintenance and renovations at each attendance center.
“If this were all to pass, it will set us up for 25 years,” said Katt. “We know if this doesn’t pass, we’ll have to piecemeal improvements for years.”
“It’s going to be a tough sell,” Vice Mayor Shaun Musil said. “Nobody wants a sales tax.”
“We have to pursue this,” replied Rankin, “and we believe the best chance we have with the voters of Hays is to partner with a portion of it being a sales tax. If we go after a property-tax-only impact, it’s overwhelming to voters, which leaves us with a failed bond.
“So what do we do? Do we shrink it? What do we cut? Do we cut out a storm shelter when there was 83 more tornadoes this year in Kansas than last year? Do we cut out a secure entrance and run the risk of a shooter walking into Hays Middle School?” she asked.
Hays is the only city in Kansas that does not levy property taxes for its general fund, according to City Manager Toby Dougherty.
“We’re the only one that totally relies on the sales tax,” he pointed out.
Commissioner James Meier was opposed to the request.
“You’re asking us to give up the last quarter-percent of the 2 percent we have for a sales tax (for potential future city projects),” he said.
“I understand sacrifices have to be made,” Rankin said. “We’ll go out and campaign to try and get it passed, but at least give us a chance to put it before the voters and let them decide.”
“I have no issue with putting this in front of the voters,” replied Commissioner Lance Jones, “but if we were to do this, we’re putting a lot at jeopardy (for the city budget).”
Commissioner Henry Schwaller declared outright he would not support the request, citing declining revenues for the state and Ellis County, which may be made up with more sales taxes.
“I’ve talked with our county commissioners and, indeed, their half-cent sales tax will sunset with the special projects (emergency services building and law enforcement center remodel) are paid for,” Schwaller said. “But because of the declining price of oil and other considerations, their revenue is down severely and they are in a box worse than both of us put together, and they are contemplating asking for another half-cent sales tax.”
Commissioners declined to move the request forward to next week’s city commission meeting. School board members are expected to talk about the facilities improvement plan again at their work session Monday, Jan. 11.