La Cygne council keeps property tax rate below revenue neutral

La Cygne Police Chief Zachary Mathies, right, announced at the La Cygne Council meeting on July 15 that Officer Joshua Higgins has graduated from the Law Enforcement Training Academy. Higgins is the new full-time officer for the city. (La Cygne Police Department Facebook)

By Roger Sims, Journlal staff

linncountyjournal@icloud.com

LA CYGNE – Members of the La Cygne City Council had a decision to make at their meeting on Wednesday, July 15. In five days the decision was due on whether to file with the county clerk a notice to exceed the revenue neutral tax rate that was set by the state.

According to state statute if a city or county or school board proposed to exceed revenue neutral from property taxes based on the previous year’s income, it needed to file a notice to exceed that amount by July 20. Local governments have been fighting inflation, including maintaining competitive salaries for workers who are also being hit with inflation, and replacement costs for equipment that has grown more expensive.

But when City Clerk Jodi Wade presented the draft of the 2027 city budget, it was almost 1.6 mills less than the revenue neutral rate determined by county clerk’s office. That lower tax rate will be a win for city property home- and business-owners as the proposed 2027 levy would be 51.795 mills, down from the 57.085 mill levy for 2026.

The 2027 revenue neutral rate for the city was 53.385 mills.

A mill is $1 of tax for every $1,000 of assessed property valuation. Kansas has a statewide assessment percentage of 11.5% for residences, so a house with an appraised market value of $100,000 would have a tax assessment value of $11,500. If the tax rate on that residence is one mill, the tax levied would be $11.50.

Multiplied by 51.795 mills, the city portion of the property tax on that property would be $569.75. Of course, other governmental units – including school district, library, hospital district county and cemetery district – would be added on to that. And there are not many properties worth only $100,000 anymore.

At the meeting a couple of council members expressed concern that the mill levy would be too low, but Wade was confident the numbers would work.

“I’m comfortable where we’re at with it,” she said, adding that if something should arise, the city could go to the unencumbered cash fund to cover it.

“Right now the thing that is helping is the assessed valuation,” Wade said.

The valuation of the city jumped more than $676,700 since the 2026 budget was formulated. That’s a 6.9% increase from $9.76 million to $10.44 million for total city valuation.

The council unanimously approved a motion that the city would stay below the revenue neutral rate for the coming year.

In other business, the council:

• Approved paying a nearly $45,800 invoice from KC Gunite for repairs made to the swimming pool at the beginning of the season. Wade said the company would be back this fall for additional repairs on the 13-year-old pool. Wade said the company did not have an ongoing maintenance plan for spreading out the cost.

  
  

• Learned that a preconstruction meeting on the lift stations was scheduled for July 28. The installation of the lift stations is the last piece of the sewer upgrade project for the city. The city accepted a bid last year, but because it wasn’t the lowest bid, U.S. Department of Agriculture, the lending institution, forced the city to bid again. That agency has held up the awarding of the contract for several months.

  
  

• Heard a recurring concern about the delay in demolishing the shell of the Wagon Wheel Restaurant that was damaged by fire last December. The project was initially put on hold by the state because asbestos was found. Police Chief/Codes Officer Zachary Mathies said that the subcontractor was complaining that the July heat was slowing progress down.

  
  

• Learned that a deteriorating elbow on the natural gas main from Henson to La Cygne is expected to be more involved than a simple replacement, according to Dan Nasalroad, director of Public Works. The elbow, located on the section that crosses Middle Creek will likely require that a bypass be installed. He also reported the settling ponds of the water plant have floating moss and not algae. For now the issue isn’t causing any problems.

  
  

• Learned that a pre-application for a U.S. Department of Agriculture Rural Development loan/grant combination has been submitted for phase 3 of the city’s water plant upgrade. Wade said it would likely take six months for it to be processed. The main cost of the phase will be construction of a 500,000-gallon underground clearwell that is expected to cost as much as $4.5 million.