By CRISTINA JANNEY
Hays Post
The Ellis County Commission is considering rejoining the Northwest Kansas Planning and Development Commission, but members said Tuesday they weren't quite ready to jump on board yet.
The county ended its membership in 2020 with commissioners citing a lack of benefits received from the development commission.
The cities of Ellis and Victoria had been covered under the county's membership. When the county left, Ellis and Victoria joined the development commission for fees of $3,500 a year each.
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Randall Hrabe, development commission executive director, presented a proposal to the county commission Tuesday on Ellis County rejoining the agency.
The development commission is proposing the commission rejoin the development commission at a rate of $40,000 a year. The fees for the 18-county agency are based on 1/10 of a mill of valuation. Because Ellis County has the largest valuation in the region, it had paid the largest dues. The agency's annual budget is about $600,000.
Hrabe said if Ellis County would rejoin the organization, the cities of Ellis and Victoria would no longer have to pay dues.
"When you look at it, it's a lot of money. But when you look at some of the grants and business loans that we've done throughout Ellis County, it amounts to quite a little bit of money," Hrabe said.
The development commission helped the city of Ellis secure $1 million for its swimming pool, $400,000 for water lines, $400,000 for Ellis streets, $299,685 for an Ellis County KanStep grant, and $251,600 for an Ellis housing project, Hrabe said in a letter to the commissioners.
Commissioner Michael Berges asked about the agency's fees for Ellis County. Valuations are increasing and 1/10 of a mill likely would mean a higher fee in years to come — about $50,000 just next year, Berges said.
The development commission board had discussed charging Ellis County back fees for the years it was not a member. Hrabe said he just wanted Ellis County to rejoin for the $40,000 annual fee.
Berges said he is not in favor of paying any back fees.
Berges also argued Hays and Ellis County often do not qualify for the U.S. Department of Agriculture programs that the agency applies for because they don't meet low-income or rural population guidelines.
Hrabe tried to make the case for the benefits Ellis County would receive with their membership.
Although the agency helps local governments apply for community development block grants, it is not the only service the agency provides, Hrabe said.
The agency is trying to get more state development funds awarded to projects in northwest Kansas, Hrabe said. Only 4 percent of the last $100 million came to the 35 western Kansas counties. Forty percent of the funds went to Johnson and Wyandotte counties.
Pioneer Country Development is a nonprofit, Small Business Administration Certified Development Company under the agency's umbrella.
Pioneer County Development packages and services the SBA 504 loans. Although local businesses can go through any Certified Development Company in the state, Pioneer County is the only CDC left in all of north central and western Kansas, Hrabe said.
He said Pioneer County processes anywhere from $10 million to $64 million in loans per year. Most of those are for smaller businesses.
Northwest Kansas Housing, also under the umbrella of the Northwest Kansas Planning and Development Commission, was buying the homes built by the NCK Tech construction program. However, that program was discontinued because the agency was losing money on the program once they placed the homes on basements, Hrabe said.
He said the agency won't provide services for nothing in Ellis County.
"We've had several businesses that have come to us and wanted business loans," he said. "We do charge them a $2,000 fee upfront. We typically would not do that to other businesses in our area."
The agency also controls Section 8 rental assistance funding. It received about $900,000 during the last two years.
Ellis County has existing Section 8 recipients; however, no one new in Ellis County received rental assistance funds from their agency during the last two years, Hrabe said. In fact, the agency turned funds back to the government, he said.
"The board has chosen not to give any tenants in Ellis County any new rental assistance because of Ellis County not being a member," Hrabe said.
Berges said the budget is already set for 2023. He said he would like to consider the agency's proposal for the 2024 budget.
He said he's heard both sides of the issue. Some have argued the county doesn't get value for the dues and others see the partnership as very necessary.
"It is hard for me to say I'm a commissioner and we're looking for growth and we're looking for business opportunities and infrastructure opportunities and not be part of a commission that helps do those things," Berges said.