WOW! Property Taxes To Drop...

Patriot · August 22, 2012, 02:15:57 AM

When you run the numbers (see below), you must ask, "What the heck is wrong in Elk County?"

Property Taxes To Drop In Sumner County
KAKE TV - Wichita KS
Reporter: Phil White

You won't see them in television commercials, but property owners are the latest big winners at the Kansas Star Casino.

That's because county commissioners this week adopted a budget 2013 budget that calls for a 27 percent reduction in the county's property tax mill levy. It's the county's share of casino revenue that is allowing commissioners to make the move...

...In addition to reducing the property tax mill levy, county commissioners were able to boost the budgets of several county departments. The 2013 budget includes extra money to fix roads and bridges as well as funds to allow the sheriff's office to expand...

Full story: http://www.kake.com/home/headlines/Property-Taxes-To-Drop-In-Sumner-County-166544366.html

How can one compare Sumner & Elk Counties? This is one simple way...

Sumner budget: ~$17+ Million Elk Budget: ~$2.4 Million
Sumner 'windfall': ~$1.8 Million Elk 'windfall': ~$900,000

The Sumner Budget is over 7 times bigger than ours. Their 'windfall' is only 2 times bigger than ours. And Sumner Commissioners can provide a 27% property tax mill levy AND increase their road, sheriff & other budgets?!?

Ask yourself, "Is it time for some new management & leadership in Elk County?" Just something to think about.

srkruzich · August 22, 2012, 04:26:11 AM

wow!

greatguns · August 22, 2012, 05:29:20 AM

Time for a Kansas Casino in Elk County!!!!

flintauqua · August 22, 2012, 08:36:35 AM

And now for the rest of the story.

From the Sumner County Economic Development website: http://gosumner.com/node/501

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Sumner County Commission Approves Reduction in Property Tax Rates

Mon, 08/20/2012 - 11:25am | by GoSumnerAdmin

SUMNER COUNY COURTHOUSE, WELLINGTON, Kan. - The Sumner County Commission voted Tuesday to finalize its 2013 budget. Included in the budget is a 27% reduction in county property tax rates. Commissioners credit Kansas Star Casino gaming revenue and property valuation for making the reduction possible.

"This will directly impact property owners in all of Sumner County," said Commission Chairman Cliff Bales. "The taxes on a $100,000 home will drop $200 a year."

Gaming revenues, directly attributable to the Kansas Star Casino, resulted in a Sumner County mill levy reduction of approximately fifteen mills, according to County Commissioner Steve Warner. The total mill levy reduction for the county is 17.2.

Sumner County receives 1% of gaming revenue, generated by the Kansas Star Casino. The amount received by the county surpassed the $1 million dollar mark in July, totaling $1,078,663 for 2012. The addition of the multi-million dollar facility has also made a dramatic increase in the amount of property tax revenue collected by the county.

Commissioner Jim Newell stated "Individually and collectively, the County Commissioners have kept their promise to the citizens of Sumner County. The revenue stream generated by the Kansas Star Casino has been applied to provide the property owners of our county with much needed and appreciated tax relief."

The Kansas Star Casino is in its first phase of development. The $329 million investment will include a full service casino, hotel, events center and more when completed.

"We're proud to be located in Sumner County," said Scott Cooper, Kansas Star Casino General Manager. "We're also proud to have leaders who are dedicated to passing our success on to our neighbors here in the county."

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Let's look at two parts of that article again -

"Sumner County receives 1% of gaming revenue, generated by the Kansas Star Casino. The amount received by the county surpassed the $1 million dollar mark in July, totaling $1,078,663 for 2012. The addition of the multi-million dollar facility has also made a dramatic increase in the amount of property tax revenue collected by the county."

"The $329 million investment will include a full service casino, hotel, events center and more when completed."

So, what's different between the Sumner County Casino and the Elk County windfarm?

First, the casino's valuation (which if based on investment) is approximately the valuation of the windfarm, gets added to the tax base and is subject to the mill levy assessed by the county (and other taxing entities like the school system).

And secondly, the county receives 1% of gaming revunue from the casino.

Patriot's comparison of the effect on county budgets does not take into account the "dramatic increase in the amount of property tax revenue' from the construction of the casino.

It was the state legislature that exempted windfarms from the property tax rolls, and it was the legislature that did not exempt casinos.

Diane Amberg · August 22, 2012, 08:59:16 AM

Very interesting. If I remember correctly, several years ago we were all chatting about ways to boost Elk County's tourist appeal and someone did suggest a Casino, but that idea never went anywhere.

Patriot · August 22, 2012, 09:36:11 AM

The economic development folk did mention the attendant property tax increase, to be sure. But all others seemed to think the gaming revenue windfall was the major player. I also found it amusing that Sumner's published budget for Economic Development for 2013 is $1.00. You read that right... One Dollar. Typo? Don't know.

More seriously, my question stands regardless.... Our taxes/rates keep going up and our population down. We have one of the highest mill levies in Kansas. New business startups have been meager. Our largest non-government employer is a seasonal operation. The bulk of financial 'returns' from our windfarm go into the pockets of a limited number of landowners in the form of lease payments & royalties. Further if the state chooses to tax the wind farm, the county's share of those current returns (PILOT) is reduced dollar for dollar by any taxes the windfarm pays to the state. And as a utility, I'm not sure how much of those property taxes would return to the county.

All in all, I'm not sure this is really all about the revenue side of the equation in Elk County. But, the casino seems to have been a good choice for all of Sumner's people. Perhaps we should hire Sumner's economic development manager.

So then what are we to do? Roll over & give up? Heaven forbid! Even so, our best options seem to include the need for new leadership, because to keep doing what we've been doing for 10 + years sure doesn't seen to have produced much of a positive change. Priorities of management, maybe?

ddurbin · August 22, 2012, 12:09:22 PM

Just a point on Sumner County's casino. SB 66 from 2007 established the four gaming enterprise zones in Kansas, of which Sedgwick and Sumner were designated as the SouthCentral zone. Sedgwick County opted not to have a casino, but Sumner accepted. I'd question how much their Economic Development folks had to do with them being selected as potentials in the first place.

Patriot · August 22, 2012, 03:26:26 PM

Quote from: ddurbin on August 22, 2012, 12:09:22 PM
I'd question how much their Economic Development folks had to do with them being selected as potentials in the first place.

Perhaps that's why the Sumner's 2013 Economic Dev budget is one dollar! Maybe we could learn something here. Heck, ours costs us over 2 mills... just for wages & benefits!

flintauqua · August 22, 2012, 04:03:57 PM

Quote from: Patriot on August 22, 2012, 03:26:26 PM
Perhaps that's why the Sumner's 2013 Economic Dev budget is one dollar! Maybe we could learn something here. Heck, ours costs us over 2 mills... just for wages & benefits!

You might want to check out the Sumner County budget by department, rather than by line item account.

http://www.sumnernewscow.com/wp-content/uploads/2012/08/2011-12-13-department-head-budgets-Sheet1.pdf

Economic Development $99688 for 2011, 2012, and 2013.

flintauqua · August 22, 2012, 04:14:51 PM

Also, with phase one not yet complete and all on the tax rolls, and phase two yet to commence, the casino and related development has already added $22,699,375 to Sumner County's total assessed valuation, which will generate an additional $998,772 in tax revenue at the reduced tax levy of 44.009 mills.

And that's not including increased sales tax and transient guest tax that will be generated.

But, like Diane said earlier, when this type of development was proposed in both Elk and Chautauqua County, it received absolutely no traction. And if it had, the very people who are saying "Look what Sunmer County did!" would probably have fought it tooth and nail.