Allen Dinkel, City Manager
Last week I wrote about the food sales tax change on the State level and then rolled into some general discussion about City revenue. I have seen and heard some comments about that column, and we will begin with that this week.
I saw one comment on Social Media about the drop in the State Food Sales to 2%. This person placed a copy of a receipt from a local store, and it showed the sales tax on food items at 5.25%. As we mentioned the State portion dropped to 2% and is set to go to Zero on the first day of 2025. However, the local portion stays in place. No, that is not just in Junction City, but for every city in the State of Kansas that has a local sales tax, be it City or County or both. I did a scan over the 626 cities in Kansas, and I think only 24 do not have a local sales tax. Those are very small cities where there probably is not a grocery store or food sales are extremely small. Cities such as Dexter, Liebenthal, or Cassoday. (How many know where all 3 of these cities are located in the State?) I have not added it up, but my guess is the total population of all these 24 added together is less than 5,000 people and I may be way high on that. Remember that all local sales taxes in Kansas were approved by local voters. Local sales tax regardless of that the purchase it, are often vital to local governing units.
Other comments we often hear are ones I have heard before in other cities I managed in Kansas. On the one hand we get complaints about the need for more street maintenance and replacement, but at the same time we hear complaints about the taxes being too high. I have never figured out at work or at home how we can spend more and cut revenue at the same time. Yes, we worry about cash reserves at the City, because not that many years ago this City was nearly broke and if a disaster would have occurred, it would have been difficult as even up to about 6 years ago, the City could not have issued any more General Obligation (G.O.) Debt as it had been too high, Special State Legislation was needed twice, and debt had to be lowered. To date this has been accomplished and the journey is getting shorter.
Sometimes we hear from people why should they have to pay for what occurred 15 or so years ago. The debt happened and had to be paid. Here was no choice. The City simply had to balance debt service, expenses for City operations and projects, build some cash reserves, and attempt to keep taxes as low as possible. Of course, everyone has their own opinions and does not always agree. Comes with the territory.
One question I am asked is how are City projects such as street projects are chosen. The Public Works Departments along with the consulting engineer of the City, collect data and try to address the greatest concerns. Unfortunately, there are limited resources and choices are made.
The one project I am often asked about is the work that was done on 7th Street from Jefferson to Garfield and then over to 8th Street to Eisenhower. One person that money could have been used elsewhere. This project was the idea of Live Well Geary County who obtained a grant through Pathways to a Healthy Kansas. This grant was used as a local match for grant from the Kansas Department of Transportation to construct a “Bike Boulevard”. Yes, structures were installed to “calm” traffic and make the area safer for other transportation methods. Yes, it was a change and I know there are those who like the improvements and others who totally disagree. No, these dollars could not have been used for other transportation projects in the City and did not lower the local funds available for improvements.
When the new High School was built, the City worked with the School District to install the Roundabout at K-18 that was required by KDOT. Since the City could get KDOT funds, a partnership of the City and the District to construct the roundabout and the south 1/2 mile of Blue Jay Way. Ray Way was also built due to the requirements of KDOT who did provide extra funding. The City Commission authorized debt financing some funds to build the north ½ mile. The cost was nearly $2 million, but it needed to be done. Now as more homes are being built in Sutter Woods and Sutter Highlands, these improvements are quite valuable. Sometimes money has to be spent.
There are always many choices that have to be made as the City moves forward. Care has to be not to make mistakes that take “forever” to pay off but have to be considered for the present and future of the community.