Paslode
08-07-2010, 19:56
http://www.sunpublications.com/201008044714/news/huge-tax-increases-proposed-for-fairway-roeland-park.html
Written by Loren Stanton
Wednesday, 04 August 2010 00:00
Fairway and Roeland Park residents could be facing significantly higher property tax bills next year.
Lagging revenues and rising debt payment obligations are forcing city councils in both communities to propose higher levies.
A proposed budget with an 8-mill tax increase, or almost 70 percent, was approved for publication by the Fairway council. A 4-mill increase, about 20 percent, is the published property tax rate in Roeland Park’s proposal.
The budgets and tax rates will not be finalized until later this month. In the meantime, officials in both cities say they are looking for ways to trim more expenses and reduce the proposed tax rates.
“It’s huge, and I’m hoping we don’t have to raise taxes that much,” Fairway Mayor Jerry Wiley said.
The property tax bill on the average $310,000 Fairway home would increase by about $300 a year if the published levy is adopted. The bill on the average $150,000 Roeland Park home would go up about $50 annually.
Earlier this year, Prairie Village became the first community in the county to propose a property tax hike. But the planned .69 mill levy boost there is modest compared to the rates now being contemplated in Fairway and Roeland Park.
Mayor Wiley, who was elected to office last year, said debt obligations for street, bridge and storm water improvement projects undertaken in recent years are the major culprits in forcing the tax increase in Fairway.
The city, which has a total annual budget of about $4 million, faces debt service obligations of $12 million over the next 20 years.
“It’s the burden of indebtedness that has left us where we’re at,” Wiley said. “This is the consequence of the indebtedness we have incurred, and the remedy is going to be painful.”
Roeland Park is facing similar pressures. The city has lowered its property tax levy in recent years yet still managed to undertake major street and storm sewer projects.
“If we’d had the foresight of what the economy was going to do, we most likely wouldn’t have reduced (the levies) in those other years,” Mayor Adrienne Foster said.
And perhaps a better crystal ball would have persuaded officials to not be as aggressive in making capital improvements. The city gradually has been replacing so-called “ditch streets” that lacked curbs, gutters and storm drainage.
“Our streets are very well cared for. We’ve filled in the last ditch. If we could have had a ditch filling party we probably should have. Every street now has curbs and gutters. We’ve spent $2 million in the last five years alone,” Foster said.
The city had anticipated spending another $400,000 on street work next year, but Foster said that was among the items trimmed by the council in order to keep the tax rates down.
Like every other city in the county, Roeland Park and Fairway also are collecting less in sales tax revenues. Property tax valuations, which in non-recessionary years always went up, are either dropping or remaining flat. That results in less property tax revenue coming in.
Sales tax revenues in Fairway fell 10 percent last year and are expected to be down another 16 percent this year. The city’s health insurance costs will go up 16 percent.
Fairway officials are surveying residents for thoughts and ideas on where to make cuts or raise revenues. A public budget forum will be held at 7 p.m. Monday, Aug. 9, at City Hall.
While cuts can be made, there is only so much in savings available, the mayor said.
“A mill levy increase is inevitable, but the amount is in question,” Wiley said. “To maintain the present level of service, it’s going to be a 7- to 9-mill increase. That’s unsatisfactory to me. Unfortunately, it may be necessary.”
Avoiding any increase also looks to Foster like an impossibility if the city is going to pay its bills.
“Nobody wants to raise taxes now, but we must pay our debts, and we are not going to defer our debt. We’re not like the federal government. We can’t just print more money,” Foster said.
But she said the city will continue to look for greater efficiencies in order to cut costs.
The council voted 4-4 on the budget option approved for publication, with Foster casting the tie-breaking vote.
Councilman Bill Art voted against the motion and said restructuring debt payments could allow the city to keep the levy increase from going as high as now proposed.
As difficult as budget deliberations have been, Art sees a bright spot in the task.
“The experience has allowed us to go through the budget line by line so we really see what things are in there we don’t really need to do,” Art said.
Let's see Fairway built their own multi million dollar, Gubment Subsidized bridge to nowhere a year or so a ago, and Roeland Park solved it's financial growth problems awhile back by allowing Walmart set up shop and giving them tax breaks. And both Cities need a 'New' City Hall
It is all working so well....just raise taxes!
Written by Loren Stanton
Wednesday, 04 August 2010 00:00
Fairway and Roeland Park residents could be facing significantly higher property tax bills next year.
Lagging revenues and rising debt payment obligations are forcing city councils in both communities to propose higher levies.
A proposed budget with an 8-mill tax increase, or almost 70 percent, was approved for publication by the Fairway council. A 4-mill increase, about 20 percent, is the published property tax rate in Roeland Park’s proposal.
The budgets and tax rates will not be finalized until later this month. In the meantime, officials in both cities say they are looking for ways to trim more expenses and reduce the proposed tax rates.
“It’s huge, and I’m hoping we don’t have to raise taxes that much,” Fairway Mayor Jerry Wiley said.
The property tax bill on the average $310,000 Fairway home would increase by about $300 a year if the published levy is adopted. The bill on the average $150,000 Roeland Park home would go up about $50 annually.
Earlier this year, Prairie Village became the first community in the county to propose a property tax hike. But the planned .69 mill levy boost there is modest compared to the rates now being contemplated in Fairway and Roeland Park.
Mayor Wiley, who was elected to office last year, said debt obligations for street, bridge and storm water improvement projects undertaken in recent years are the major culprits in forcing the tax increase in Fairway.
The city, which has a total annual budget of about $4 million, faces debt service obligations of $12 million over the next 20 years.
“It’s the burden of indebtedness that has left us where we’re at,” Wiley said. “This is the consequence of the indebtedness we have incurred, and the remedy is going to be painful.”
Roeland Park is facing similar pressures. The city has lowered its property tax levy in recent years yet still managed to undertake major street and storm sewer projects.
“If we’d had the foresight of what the economy was going to do, we most likely wouldn’t have reduced (the levies) in those other years,” Mayor Adrienne Foster said.
And perhaps a better crystal ball would have persuaded officials to not be as aggressive in making capital improvements. The city gradually has been replacing so-called “ditch streets” that lacked curbs, gutters and storm drainage.
“Our streets are very well cared for. We’ve filled in the last ditch. If we could have had a ditch filling party we probably should have. Every street now has curbs and gutters. We’ve spent $2 million in the last five years alone,” Foster said.
The city had anticipated spending another $400,000 on street work next year, but Foster said that was among the items trimmed by the council in order to keep the tax rates down.
Like every other city in the county, Roeland Park and Fairway also are collecting less in sales tax revenues. Property tax valuations, which in non-recessionary years always went up, are either dropping or remaining flat. That results in less property tax revenue coming in.
Sales tax revenues in Fairway fell 10 percent last year and are expected to be down another 16 percent this year. The city’s health insurance costs will go up 16 percent.
Fairway officials are surveying residents for thoughts and ideas on where to make cuts or raise revenues. A public budget forum will be held at 7 p.m. Monday, Aug. 9, at City Hall.
While cuts can be made, there is only so much in savings available, the mayor said.
“A mill levy increase is inevitable, but the amount is in question,” Wiley said. “To maintain the present level of service, it’s going to be a 7- to 9-mill increase. That’s unsatisfactory to me. Unfortunately, it may be necessary.”
Avoiding any increase also looks to Foster like an impossibility if the city is going to pay its bills.
“Nobody wants to raise taxes now, but we must pay our debts, and we are not going to defer our debt. We’re not like the federal government. We can’t just print more money,” Foster said.
But she said the city will continue to look for greater efficiencies in order to cut costs.
The council voted 4-4 on the budget option approved for publication, with Foster casting the tie-breaking vote.
Councilman Bill Art voted against the motion and said restructuring debt payments could allow the city to keep the levy increase from going as high as now proposed.
As difficult as budget deliberations have been, Art sees a bright spot in the task.
“The experience has allowed us to go through the budget line by line so we really see what things are in there we don’t really need to do,” Art said.
Let's see Fairway built their own multi million dollar, Gubment Subsidized bridge to nowhere a year or so a ago, and Roeland Park solved it's financial growth problems awhile back by allowing Walmart set up shop and giving them tax breaks. And both Cities need a 'New' City Hall
It is all working so well....just raise taxes!