Dale Oglesby October 1 at 10:53pm · We had a special meeting of the City Council monday night for a public hearing on next years budget. While words cannot express the dismay that the City Council felt when we published next years budget, we elected this year to include as many of the citizens as possible in the budgeting process. After a full explanation and review of the past 7 years, the Council begin the painful task of bringing spending down as much as was feasible, then elevated the mill levy to fill the gap. Thankfully, enough spending cuts were found to bring the proposed 90 mill levy down to just over 60 mills. This was accomplished by paying down City debt and contracting evening and weekend Police dispatch to the Sheriffs dept. The council also reviewed labor cuts in public works. On the bright side, we ended the year with about $173,000.00 less debt, but have no reserves left to lower mill levies. At first glance, the property tax increase looks very bad, but when you do the math, it looks like it will be somewhat tolerable. For example, a house valued at $100,000.00 should see an increase of well under $200.00 for the year. $50,000.00 would cost under $100.00 bucks. We are confident this increase will be for only one or two years. The City Council is fully aware that any increase is difficult at best, so full efforts are in play to watch spending and explore all revenue sources. Without a doubt, economic development is key to reducing property tax. The liveliest discussion was brought up by Richard Mallet. He expressed his concern as a county resident that the City had filed tax exemption paperwork on the City owned Hospital with the state of Kansas. It was his opinion that Cherokee County should be able to collect property tax on the City owned Hospital. Our City Attorney Kevin Cure explained that it is not only legal, but customary that government entities do not charge each other property tax. That would only increase cost to the people, and there would be no place to stop. If the Courthouse had to pay property tax, they would simply pass that tax on to the tax payers. If we had to pay taxes on the City Hall, it would be reflected on the tax levies charged to the people. You see, we the people pay all the tax. Richards argument was correct, in that the county could make money and lower county taxes somewhat if they collected taxes on the hospital. That said, the City would likely stand to loose $100,000.00 in the equation, thereby raising City taxes. You see, the schools pay no property tax on their facilities. The County pays no property tax on their facilities. Likewise, the City pays no property taxes on their facilities. The City of Galena has went way out on the limb to bring this fine facility into reality. While we used no City funds to construct the $30 million dollar facility, as that was privately raised, this facility required an investment in infrastructure including sewer, water, and traffic lights. It required countless hours developing an operational contract that worked for all, and the entire process was done without help from the the county or state. The people of Galena have been very patient and supportive of our economic development activities and it is my opinion that for others outside the City to look at the Hospital with the intention of getting a cut of the action by throwing more taxes on it is ridiculous. If other taxing entities desire a piece of the pie, they should be willing to participate up front in the effort, cost, and risk in future projects. Sitting back on the sidelines to see if it works, then stepping up for a cut of the pie is just plain wrong. This medical development is an awesome development for not only the City of Galena, but for both Cherokee County and the State of Kansas. The Hospital offers great jobs and lots more traffic for all the local business to capitalize on. We are so thankful for the faith the Doctors have placed in the City, the County, and the State of Kansas.. The final decision on the tax exempt status of the Hospital, however, rest with the state. Finally, I would like to thank the people of Galena for their patience as we move to a more stable and affordable tax levy. I firmly believe our best days lay before us Dale
Posted on: Fri, 03 Oct 2014 23:50:37 +0000
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