Jun 11, 2021

🎥 Mayor retracts idea for eco devo mill levy increase; still supports more funding

Posted Jun 11, 2021 11:01 AM
Doug Willams, Grow Hays executive director, listens to Hays city commissioners Thursday night during a discussion about increased funding for economic development in the city's 2022 budget.
Doug Willams, Grow Hays executive director, listens to Hays city commissioners Thursday night during a discussion about increased funding for economic development in the city's 2022 budget.

By BECKY KISER
Hays Post

After soliciting input from Hays residents, Mayor Sandy Jacobs changed her mind about an increase in the 2022 mill levy devoted to economic development funding.

None of the people she talked with was against funding economic development. according to Jacobs.

"They were very much in favor of it. What they weren't in favor of was funding of 0.75 mills," Jacobs said during Thursday night's city commission meeting.  

"They did not want it in the form of a levy. Nor did they want to fund the CARE Council in that form."

Jacobs made her initial recommendation during last week's work session.

Her proposal for a one-half mill levy increase dedicated to Grow Hays, the economic development arm of Hays and Ellis County, was supported by Vice-Mayor Mason Ruder, who made his own suggestion for a 0.75 mill levy increase for economic development.

Commissioner Michael Berges also proposed a separate 0.75 mill levy increase for social services funding through the CARE Council.

The two suggestions would have meant a combined 1.5 mill levy increase under consideration in the the commissioners' 2022 budget discussion. 

"Those offering opinions said this is not a good year to do it," Jacobs added. "I had a lot of conversations about when is a good year to raise the mill levy, but nonetheless, that was their reason." 

The city's levy of 25 mills has not increased the past 12 years.

Jacobs still strongly supports funding Grow Hays "the way I believe it's supposed to be funded, as the economic development arm of the city and the county, and not an outside agency." 

She then said she would step back from her mill levy proposal and asked the other commissioners to consider funding Grow Hays at the amount equal to 0.75 mills. 

"I believe Grow Hays is making real progress in entrepreneurship, housing, workforce development and jobs," the mayor said. "I want a consistent revenue source for them to be able to count on."

Commissioner Shaun Musil agreed that Grow Hays must have stable funding.

"In my opinion, Grow Hays is the best [economic development program] since I've been on the commission." Musil said. "It has to be in the budget. We gotta figure it out. ... We cannot go backwards."

Musil also noted the plan Fort Hays State University has presented to the Board of Regents to extend in-state tuition rates to students from 14 states in the region

"That's economic development. It's not gonna happen overnight, but that's gonna be huge for Hays." Musil suggested the city commission write a letter of support for the plan to the Board of Regents.

All the commissioners were contacted by residents with reasons not to increase the mill levy in 2022.

"There were very valid reasons," Commissioner Michael Berges said. "There are other opportunities that will probably rely on mills, such as the schools."  (Hays USD 489 school board members voted last month to begin forming committees to help plan a bond issue.  The school district has not passed a bond issue in more than 30 years.)  

Berges favors the steady source of funding a mill levy provides whether for economic development or social services programs.

"The property valuation has only gone down once in 27 years so it's a way of funding that naturally has some kind of increase every year." 

But Berges agreed that "we can look at the budget and find other ways to maximize and get things funded."

Vice-Mayor Mason Ruder also supported withdrawing the mill levy increase proposal.

Commissioner Ron Mellick said he would withhold his recommendation until he sees the budget draft. Last week Mellick said he opposed any mill levy increase.

Following budget requests from outside agencies in the June 17 work session, the city commission will receive the proposed 2022 budget on July 1.

Budget reviews are scheduled for July 8 and 15 and August 5 and 19 with the public hearing on September 9.

In other business, commissioners approved the city's property/liability insurance coverage renewal with MPR for $262,616, an approximate seven percent increase in 2022.