Baldwin ? “It’s grow or die,” Baldwin Mayor Ken Hayes said.

And Baldwin is growing.

While nearly every city in Kansas struggles with near-record budget shortfalls and double-digit tax increases, Baldwin — thanks in part to a growing property tax base — is reducing its property taxes by more than 10 percent. In 2003, Baldwin property owners paid $38.43 per $1,000 assessed valuation; in 2004, they’ll pay $34.31.

“About half of (the decrease) is from the tax base increasing,” said Jeff Dingman, Baldwin city administrator. “The other half is from refinancing the city’s debt.”

Taking advantage of lower interest rates to reduce city bond payments is part of what Hayes calls “sound fiscal government.” Projected city expenditures for 2004 are almost identical to 2003, but the city’s tax base has increased dramatically. Hayes said the savings were being passed on to Baldwin homeowners without sacrificing infrastructure.

“In the past 2 1/2 years, we’re building a power plant, we’ve built a treatment plant, and we’re building two new water towers,” Hayes said.

Baldwin has become a popular bedroom community for workers in the Kansas City suburbs and Lawrence. Lower housing costs and a convenient location have contributed to Baldwin’s 5 percent population growth rate.

“I think people just like the small-town atmosphere,” said Debbie Morgan, a real estate broker with Stephens Real Estate Inc. in Baldwin.

Morgan said the market in Baldwin was booming, and the dropping property tax rates would only help.

Mica Miller, working for GLMC Inc. of Baldwin, prepares some trim work for a house in Baldwin. Miller, of Baldwin, was working Monday in an area of new homes in the Heritage subdivision on the east side of town. Baldwin officials were able to reduce the mill levy because of a spurt in new construction and growth that added to the tax base.

“It’s a major selling point,” Morgan said. “Property taxes are a big part of the cost of your [home].”

Baldwin’s property taxes are still higher than those in Lawrence ($28.065 per $1,000 valuation for 2004), but the gap is narrower than just two years ago. Hayes said the city’s attitude toward growth has helped attract business and investment.

“We’ve tried to maintain a pro-growth environment … within certain parameters,” Hayes said.

A new business park to the west of town fits into those parameters. Baldwin has optioned 42 acres of open field near the city’s new elementary school and is in the process of attracting light industrial clients.

“The impact of just one manufacturer … employing about 60-80 people … would be phenomenal for the city,” Hayes said.

¢ 6News video: Baldwin property tax rate goes down

City officials said a snowball effect has started in Baldwin. The increased tax base leads to lower taxes, which encourages more businesses to locate in Baldwin, further increasing the tax base and leading to more tax cuts.

It’s a wave of prosperity Baldwin property owners are only too happy to ride.