Baldwin City Council approves referendum on half-cent sales tax for community center

The Baldwin City Council voted Monday to put before voters next year a half-cent sales tax for a community center.

The referendum was set for Feb. 7, 2017. The approved language states that the tax, if approved, would become effective May 1, 2017, and that the money raised would be used for general government purposes of the city, including providing funds “to construct, equip, operate and maintain a public community center.” City Administrator Glenn Rodden said from past experience he learned to keep the referendum language broad so that it would secure the needed approval of the Kansas Attorney General’s Office.

The measure was approved 4-1 with Councilman Tony Brown casting the lone dissenting vote.

“I cannot support the funding mechanism,” he said. “I think a sales tax of this amount would be incredibly regressive and anti-business.”

Councilman Steve Bauer also voiced concern about the amount of the sales tax proposed, although he voted in support of the referendum.

“I wish we didn’t have to go to a half cent,” he said. “I’m not sure I’m in favor of that, but I do favor letting the public vote on it.”

The sales tax would provide half of the community center’s estimated $5 million construction cost. A 20-year bond is assumed, although the referendum approved has no sunset clause. When Councilwoman Kathy Gerstner raised that issue, it was agreed there probably would be maintenance needed when the facility was paid off in 20 years.

The other $2.5 million for the community center would be raised through an increase of 2 mills to the BCRC’s annual mill levy. Because the BCRC has no taxing authority, it has an arrangement with the Baldwin school board to levy the 4 mills used to help with its annual operational costs.

Monday’s City Council decision was the latest development in a discussion that started in November 2016, when Baldwin City Recreation Commission board member Ginny Honomichl first shared with the City Council the BCRC’s decision to start a push for a community center.

Since that time, the BCRC has secured the Baldwin school board’s commitment to donate land north of Baldwin High School for the center.

BCRC Executive Director Steve Friend requested last month that the school board approve 2 mills of additional taxes for 20 years to pay for the other half of the community center. Unlike the city sales tax, if the school board were to approve a 2-mill increase for the community center, a referendum would not be required unless there was a successful protest petition.

The Baldwin school board, City Council and BCRC board will have a special joint meeting at 6:30 p.m. Aug. 8 at the Baldwin Junior High School, 400 Eisenhower St., to discuss the community center and its funding.

Council members also approved a resolution supporting the creation of a neighborhood revitalization program. Such programs create districts within which property owners can receive property tax rebates on the value added from improvements they make to their properties. Taxes continue to be paid on the base value of a property before the improvements.

The resolution approved “anticipates” rewarding Flint Hills Group’s request for a 15-year, 95 percent rebate for the improvements it plans for the old middle school at 704 Chapel St.

Tom Larkin of Flint Hills Group told the City Commission last month that the $5 million of improvements the developer would make in the old school to convert it to affordable apartments would increase the property’s appraised value to $700,000. If not abated, that would amount to about $6,000 annually in additional taxes, which would be divided among the city, Douglas County and the Baldwin school district.