Reality check is a celebrity series that holds the powerful to account and shines a light on their decisions. Have a suggestion for a future story? Email our journalists at [email protected].

Wyandotte County’s elected officials voted Thursday to forgo any new property tax revenue in next year’s budget, answering residents’ calls for action and putting public services at risk.

Members of the unified government of Wyandotte County and Kansas City, Kansas, voted 9-0 against a resolution that would have allowed for a budget funded in part by increased property tax revenues.

The move means that about $14.3 million less will be available for city and county budgets. Financial forecasters also expect $23 million more requests.

And how this will affect services remains to be seen.

Discretionary spending is already limited in Wyandotte County. Last year, nearly 70% of the city’s $180 million general fund was allocated to public safety, including police and fire.

The county’s general fund was $84 million last year. About 57 percent of that was spent on public safety. Total personnel expenses were 67 percent.

Property taxes could still rise because the government is only a local taxing authority. School districts and the community college have yet to approve budgets or set tax rates.

In their decision on Thursday, the commissioners rejected the advice of senior officials in the unity government who painted a potentially bleak financial picture, given that no additional revenue from property taxes would be an option.

Newly hired Chief Financial Officer Shelley Kneuvean said the elected body could “keep the doors open for these funds” and change its mind later when the city and county budget proposals are ready.

But dozens of angry citizens who came to City Hall implored aldermen to shut the door, with several saying high property taxes were driving them out of their homes.

Curtis Martin pointed to the vacancies in Quindaro, calling the neighborhood a “ghost town” as development booms in western Wyandotte County.

“You have to find another source to get this money,” Martin told commissioners as other protesters against the property tax broke into applause.

Increased values

Government-set tax rates for city and county services — which account for about 44% of the annual tax burden — have remained largely unchanged over the past 10 years. Currently, rates in Kansas City, Kansas, and Wyandotte County are lower than they were in 2015.

But property tax bills have still been rising, especially in recent years, amid rising property valuations. Earlier this year, the Wyandotte County Assessor’s Office released a report saying the median price of a home was $235,000, about 27% higher than it will be in 2022.

Price increases have occurred in all corners of the county, from affluent communities in the west to impoverished communities in the east, as the metropolitan area faces a housing shortage and homes in Wyandotte County remain relatively affordable.

A Kansas law that took effect in 2021 changed the budget process for local governments and put additional pressure on elected officials regarding property taxes.

The state law – described as revenue-neutral – requires elected county and city officials to decide by mid-July whether to collect the additional property tax revenue.

Supporters tout the new law as a tool of good governance that forces local elected officials to make difficult decisions in public. Critics say the title “revenue neutral” is misleading, since local governments rely on other, more volatile sources of revenue to maintain public services.

Speaking to commissioners before the vote, Kneuvean said that cutting the levy to neutralize revenue does not mean the overall government will receive the same amount as last year. Other sources of revenue that are expected to decline include interest income and money collected through vehicle registrations.

“Shared sacrifice”

In the meantime, Kneuvean said, the government as a whole will of course have higher costs next year in all areas, from purchasing goods and services to meeting contractual obligations regarding salary increases required by collective agreements.

A few hours before the vote, county officials outlined the additional needs, which they say are simply to meet the basic requirements of state law.

Sheriff Daniel Soptic said he needs more money because of factors beyond his control, such as rising inflation and the cost of feeding inmates.

“For years, the Sheriff’s Office, along with many other departments of the (unified government), has been asked to make cuts … and the Sheriff’s Office has consistently complied with that request and worked with this commission and this governing body to make that happen,” the sheriff said.

“The problem is that there comes a point where you can’t cut anything anymore.”

After more than two hours of residents laying out their concerns, commissioners said they were well aware of the financial difficulties facing many in the community, but they also warned that giving away new property tax revenue would likely result in services being cut.

Commissioner Tom Burroughs of the 2nd District asked attendees if they “have the strength and the means to accept the impending cuts.”

“Because if you are, I’m ready to help you,” he said. “But I wanted to be as transparent as possible about the seriousness of this request.”

Residents opposed to the idea cheered with applause after commissioners cast their votes Thursday. The only elected official who did not participate was Commissioner Mike Kane of the 5th District, who was absent Thursday night.

The result was a political victory for Mayor Tyrone Garner, who campaigned as a reformer and is now in the third year of his first term. The mayor, who has long advocated such cuts, acknowledged Thursday that there would be “shared sacrifices.”

“That has to happen,” Garner said. “But I also believe we can streamline this government, we can run more efficiently, we can provide better customer service and we can be as effective as any city around here.”