By BECKY KISER
Hays Post

Going against the recommendations of both the Hays Area Planning Commission and city staff, Hays city commissioners Thursday night voted four to one to rezone the proposed Blue Sky Acres Addition two miles south of Hays on Highway 183 from Agricultural to Residential Suburban.

The area falls within the three-mile-zone outside the city limits perimeter, which is under the jurisdiction of the city.

Hays Public Works Director Greg Sund quoted to commissioners language from the 2012 Hays Comprehensive Plan, and concluded the rezoning request is not allowed. “It states this land should generally be preserved for agriculture and the extension of urban services in the foreseeable future is unlikely,” Sund said. “The Comprehensive Plan also states new development should generally be contiguous to existing development…it mentions three growth zones. It does not mention anything south of the city primarily because the existence of university (state) property to the south and west of Hays,” he added.

“I would be against this rezoning if it was right outside the city limits or the north or east edges where Hays is growing,” said Commissioner Lance Jones, “but the way it is out there, I don’t think it will ever affect the city’s growth.”

“The Comprehensive Plan needs to be a flexible document,” Jones added.

Landowner Mary Alice Unrein told the commission she has met all the requirements presented to her from various state agencies, Ellis County Public Works and Rural Fire, and Midwest Energy, all of which she previously presented to the Planning Commission. “Water is available,” she said. “There are private wells out there, and three irrigation wells which are not being used currently.” Unrein also owns the 80 acres south of the planned development and said she “could get water from there if I need to.”

Planning Commission member Matthew Wheeler explained why he voted against Unrein’s request.

“I’m very much in favor of letting people develop their property the way they see fit, but this particular development does not fit into our zoning or our comprehensive plan,” Wheeler said. “If we would say ‘Yes’ to this then the Planning Commission and the city commission would have very little standing to say ‘No’ to anybody on any future proposed development because this one is so far outside of what our zoning regulations and Comprehensive Plan call for.”

Mayor Eber Phelps cast the lone vote against the rezoning request.

“We had a number of sets of eyes looking at this–two times by the Planning Commission. I believe they and city staff followed the letter of the law and all the criteria set forth in our comprehensive land use plan. The three-mile-zone was put in place for a purpose.”

All the commissioners agreed city staff and Planning Commission members were legally correct in their decisions against the rezoning request.

“I went to the Ellis County commission meeting last week in an unofficial capacity,” Commissioner Henry Schwaller reported.  “The county commissioners would like to see the development go forward to the point where they could have the opportunity to consider the development.  Both they and the department heads do not believe this development would be a harm to the county.  They believe it would be very helpful and they see it as a way to boost revenue.”

Schwaller, who made the motion to approve the rezoning, said it had been a “very difficult decision” for him.  He then pointed out the 2012 Comprehensive Plan has “not yet been codified into our zoning regulations.”

“We’re still in the process of rewriting and debating and passing a new set of zoning regulations that matches the Comprehensive Plan….until then, there is no outright ban of this in our zoning regulations,” Schwaller said.

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.

By BECKY KISER
Hays Post

The R9 Ranch water rights transfer application was filed Thursday by the cities of Hays and Russell with the Kansas Division of Water Resources.

The go-ahead to proceed with the long-term water development project in Edwards County was approved by Hays city commissioners 23 months ago.

“It was February of 2014 we started the regulatory process,” said City Manager Toby Dougherty. “I remember at that meeting, then-commissioner Kent Steward asked how long it would take. I said ‘probably 18 to 24 months, but I hope it doesn’t take that long.'”

It did.

Dougherty told commissioners Thursday night that city staff and the city of Russell worked “very diligently. We weren’t dragging our feet.”

“The change applications (from agricultural use to municipal use) were filed in June. They’ve been received by DWR; they’re going through the process. The transfer application (from thirty water rights on the R9 to Schoenchen and then on to Hays and Russell) was the last piece that needed to be filed. It was posted on the city’s website today so anybody can read it.”

City Attorney John Bird recommended against reading the 6,000 pages of exhibits.

“However, the 85 pages of the application are actually pretty good–a really good review of how Hays got to where we are, and what we’re doing.  We know people will ask a lot of questions and this application does a good job of addressing those,” Bird said.

“Now, the ball is in the state’s court,” Dougherty said.  “We are in a reactionary mode, waiting  for them to set the hearings and go forth from there.”

The estimated cost to develop the R9 is $72 million.

Hays, which owns 82 percent of the ranch it purchased in 1995, enacted a sales tax in the mid-1990s to help fund the project. The city of Russell owns 18 percent of the R9 Ranch.

By BECKY KISER
Hays Post

In addition to an update of the 2015 activities of the Ellis County Coalition for Economic Development, Hays city commissioners will discuss modifications to the city’s economic development policy during tonight’s work session.

The 2016 budget for the city of Hays does not contain a direct allocation for the ECC. The allocation is listed as “Economic Development.” No funds will be released to the Coalition until approved by the city commission. ECCED Executive Director Aaron White is scheduled to present the activity update.

During consideration of a travel plaza development proposal, and subsequent economic development request by NWK Investments last year, the city commission suggested the economic development policy be revised to more clearly define the role of the Coalition. City staff met with White and the city’s bond counsel to develop the suggested revisions.

The result of those meetings, according to Assistant City Manager Jacob Woods, is the addition of a proposed new section, a “Statement of Process” to streamline the application process and make it consistent for all potential developers.

“If you’re somebody that wants to bring in a business to Hays, you’ll know exactly what the expectations are,” Woods explained. “It also will clarify the role of the Economic Development Coalition as far as what role they play in the policy.”

You can see the proposed Statement of Process and the entire Jan. 7 work session agenda here.

The meeting starts at 6:30 p.m. in Hays City Hall.

By BECKY KISER
Hays Post

Hays USD 489 will ask the city of Hays for possible approval of a sales tax ballot to supplement a $94 million bond issue for planned facility improvements. Superintendent Dean Katt and Dustin Avey of Piper Jaffray, the school district’s financial advisor, are scheduled to meet with the city commission during their Jan. 7 work session.

As Assistant City Manager Jacob Woods explained, Kansas school districts do not have the legal authority to place sales tax questions on local ballots, and therefore need a city or county to facilitate the process.

“There are two ways to do that,” he said. “One way is the city passes an ordinance that puts the question on the ballot and then the people vote. The other way is to get signatures on a petition of ten percent of the registered voters which the county clerk would make sure it’s valid and certified, and then the vote would go on.”

There are also two types of sales taxes that could be utilized, according to Woods.

“The city is authorized to do two different kinds,” he said. “One is a general purpose tax and one is a special sales tax. The general purpose tax can go on for longer periods of time. A special sales tax is for a specific project and that can go on for a maximum of ten years.”

In a memo to commissioners, City Manager Toby Dougherty listed the pros and cons of a new sales tax in Hays.

If voters were to approve a proposed sales tax on behalf of USD 489, it can help keep property taxes lower in Hays, according to Dougherty, and also allow the USD 489 debt to be paid off faster. However, it could also limit the city’s future ability to utilize a special sales tax.

“At this time, city staff does not have plans to recommend any sort of special purpose sales tax to the city commission,” Dougherty wrote, “but the planning horizon is relatively short, and most likely shorter than the period the USD 489’s special purpose tax would be in place.”

Dougherty also suggested that language be inserted in any sort of a sales tax question that ties the enactment of a sales tax to the property tax question, meaning the sales tax could only be imposed if the property tax question is passed by voters.

The USD 489 financing information and facility improvement plan can be seen here.

By BECKY KISER
Hays Post

Hays city commissioners gave their full support to fellow commissioner Henry Schwaller’s proposal Thursday night to develop an alliance with Ellis County and Hays USD 489 to share resources and cut costs.

“I think it’s a great idea,” said Vice-Mayor Shaun Musil. “When we all get elected, whether it’s city, county or school board, our first interest is our communities.

“It’s almost scary what’s going on in the economy. We don’t really know what’s going to happen.” Musil acknowledged the financial struggle of the Hays school district “because of state issues. The city has done a great job managing our finances very well because we can control most of it,” he added.

Noted economists have predicted current financial trends, such as low oil prices and declining state revenues, may continue for the next 18 to 24 months, according to Schwaller.

The declining state revenues are a particular affront to Mayor Eber Phelps, a former longtime Democratic state representative for Hays in the 111th District.

“We are, in my opinion, forced into this situation,” Phelps said. “We’ve got to figure something out.”

“The state eliminated one-third of its revenue stream. They keep struggling in Topeka, taking money from the Kansas Department of Transportation, etc.”

Phelps said he checked Wednesday with the Kansas Revisor of Statutes office and was told “we’d have $1 billion in the state coffers if the third leg of the revenue stool had not been eliminated by removal of the income tax for LLCs and proprietorships and so forth.”

He described the revenue shortage as “self-inflicted” and added “it’s trickled down to school districts especially, and even to county and city governments.

“The other thing is in trying to recover all this, the state has increased sales tax not once, but twice, and they’ve increased fees all over the place. That was a nice little tool for local governments. I know our school district is talking about a sales tax increase (to finance building improvements) but the fact of the matter there’s already been two recent state sales tax increases and there is a third increase in another area.

“That elimination of the income tax has just been the most detrimental thing that I’ve seen in many, many years here in our state,” Phelps concluded.

Commissioners directed Hays City Manager Toby Dougherty to contact the county and school board to schedule an initial joint alliance meeting early in January.