Westar status complicates budget
Friday, July 27, 2007
Lyon County’s 2008 budget has become more complicated thanks to a pending tax exemption for Westar Energy’s peaking power plant under construction outside Emporia.
Bob Agler of A&M Consultants told Lyon County commissioners Thursday that Westar had not yet filed paperwork for an exemption of property taxes on the Emporia Energy plant.
Westar now is going through that process, which challenges county officials to decide whether to put Westar’s $3.4 million valuation on the county’s assessed valuation rolls.
Agler said Westar probably would get a tax exemption, but doesn’t know if it will happen before the valuation has to be certified. Tax valuations have to be certified by a certain date and if Westar’s exemption is not approved by that date, its valuation has to be included in the tax roll.
“The county clerk would have no choice (but) to include it in the assessed valuation,” Agler said.
He said the impact of having Westar’s taxes removed from the budget once they are certified as exempt will affect the county. But the greater impact would fall on surrounding townships because their tax assessments are smaller (meaning less tax revenue) than the county as a whole.
Agler discussed three options with commissioners. The first is to remove the property from assessed values. But he said this option probably won’t be accepted by the state because Westar’s exemption has not yet been approved.
The second option, which hasn’t been proven to be legal either, is to include Westar’s taxes in the budget even though the company likely won’t have to pay them.
The third option would be to file a no-fund warrant, which is issued when there isn’t money in the budget to cover unforeseen expenses.
County Controller Dan Slater said this morning when tax bills are sent to district residents, a revenue amount is promised to that taxing district. When something happens such as property like Westar winning a tax exemption, the taxing district would not receive the promised funds.
“All of the sudden we don’t have any tax dollars to give them,” Slater said.
Then, the no-fund warrant kicks in. The county borrows money, usually from the general fund, Slater said, to cover the revenue shortfall. The bond has to be paid off the next year.
“They basically borrow money and promise that next year they will have an additional levy to pay the bond off,” Slater said.
“There’s not a good option,” Agler said. “Maybe BOTA (Board of Tax Appeals) will move right along (and exempt Westar) and this won’t be an (issue).”
Agler also discussed individual department’s budget increases.
“I don’t recall seeing any requests that are down,” Agler said, adding that he didn’t see many that stayed the same either. “Everybody believes they need more public money.”
Agler said the city, county and school district aren’t wealthy and have to answer to the taxpayers, especially with more than $1 million in requested budget increases to fund.
“Any commission is the middle person,” he said. “This isn’t a bad thing (requests) but is it an affordable thing?”
Agler said commissioners right now aren’t in an enviable position.
“It truly gets us down into the difference between necessity or wants,” Agler said. “It’s not even their (commissioners’) money. From their standpoint, they say it’s a good program but the taxpayers are saying they are strapped.”
Agler said it’s like having 15 kids — if each kid asks for a little increase it has a big impact.
Slater said all the requests are reasonable.
“I don’t know if there is one line in there where you can say this is totally bogus,” Slater said. “But it’s quite an increase.”
In other matters, Vanda Hall, who lives at 1975 Road U, one mile east of the peaking power plant, voiced concerns with traffic, dust and general safety of the roads in the surrounding areas.
Hall presented commissioners a petition with about 66 signatures requesting the speed limit be lowered to 35 miles per hour on portions of Roads S, U and 200.
Hall said about a week ago, she was driving in the area and was nearly hit head on by a Hamm Construction truck. Hall was driving her Corvette at the time when she met the construction truck in her lane.
“I was head to head with his bumper,” Hall said.
Hall said there was so much dust from another truck that the second truck couldn’t see and was left of center.
“It was strictly dust and speed,” Hall said. “Something needs to be done to ensure safety as much as possible...”
Miller said the commission will discuss the item during next week’s commission meetings.
“We aren’t going to ignore it,” Miller told Hall.
slipandslide (anonymous) says...
when is the county going to do something effective about the traffic problems out there? i like to think a person who is driving safely will not be bowled over by a reckless person. if there is anything i can do to help convince the county the issue is serious and needs to resolved let me know with a comment to this.
July 27, 2007 at 7:41 p.m. ( permalink | suggest removal )