By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Hutchinson City Manager Jeff Cantrell will go over the implications of new transparency legislation with the City Council as part of its budget study session Monday.
"It's removal of the previous tax lid," Cantrell said. "It does come with some publication requirements that can become a little tricky for cities and taxing entities."
Cantrell sees the city's best path, based on guidance from the League of Kansas Municipalities, as preparing to do the reporting as if they are going to exceed the Revenue Neutral Rate.
"What is new for us is, the tax lid was about dollars," Cantrell said. "What this new neutral rate is about is the mill levy itself. As valuation changes, the mill levy can be adjusted, really having no impact on property owners, because the dollars can stay the same, but the mill levy might require annual adjustment. It frequently does. In the case of a municipality, it really protects us just to go ahead, hold the hearing up front and to comply with that element, even when we don't know exactly what that mill levy adjustment might be."
Given that this is the first budget process for some of the council, there will be some education that is necessary.
"I think, for our group, it's going to be just an understanding of what the statute requires and perhaps the intent behind it," Cantrell said. "It's probably a better scenario for cities, as long as you have a degree of comfort in complying with the additional hearing requirement. It's not really that big of a deal for us. It's the same budgeting process we've always used, it just puts one more process in it as we go."
Beginning in 2022, the County Clerk will mail Revenue Neutral Rate notifications to all taxpayers.
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