The proposed 2022 city budgets for Baldwin City and Eudora would both keep the mill levy flat, but they would collect more in taxes because of increases in property values, and thus they wouldn’t be “revenue neutral” as defined by a new state law.

The new law, Senate Bill 13, requires governing bodies to notify their taxpayers and hold a special public hearing if they are going to consider a budget with a property tax rate increase or a flat property tax rate that results in property owners paying more in taxes because of an increase in assessed property value. Supporters of the law have said it would force local officials to be more open in making tax and budget decisions. But Baldwin City Administrator Glenn Rodden said he viewed the legislation as an empty gesture by lawmakers who wanted to look tough on taxes.

“I don’t know of anyone proposing a revenue-neutral budget,” he said.

Rodden said Baldwin City’s proposed budget will keep the mill levy at 44.7 mills — the same level as in 2021 and the three preceding years. That means the city’s share in taxes from a $200,000 home would be $1,028.

However, Rodden said the city would end up collecting more money because the total property valuation in the city had risen by 5% since last year. That’s because of new construction and increases in the valuation of existing properties. Rodden said the city planned to use the extra revenue to help pay for raises for city employees, as well as to cover an anticipated 10% increase in employee health insurance costs.

The 44.7 mill figure includes a 4 mill assessment for the Baldwin City Public Library.

In Eudora, the budget situation is similar to what’s happening in Baldwin City. City Manager Barack Matite’s proposed budget keeps the mill levy at 39.5 mills, the same level it’s been at since 2017. That means the city would get $908.50 in property taxes from the owner of $200,000 home. But the city’s total property valuation has grown by 6% since last year.

In a budget report to commissioners, Matite said the increase in tax collections would help cover an overall 3% pay increase for city employees. Like Baldwin City, Eudora also expects its employee health insurance costs to rise by about 10%.

Matite said the budget also recommended increasing the city’s water and wastewater rates by 3%. Those rate increases would go into effect at the start of 2022.

Cities would normally approve the upcoming year’s budgets in early August, but the new state law has pushed back the local government budget process. Both the Eudora City Commission and the Baldwin City Council have given an initial approval to the proposed budgets — specifically, approving them for publication. Once a budget has been approved for publication, the governing body can choose to lower the property tax rate but can’t increase it.

The next steps in the process will be the public hearings — one to comply with the new state law for budgets that aren’t “revenue neutral,” and another more traditional budget hearing for consideration of the budget in general.

Eudora City Clerk Pam Schmeck said the City Commission would hold both of its budget hearings on Aug. 23. Rodden did not have exact dates for when the Baldwin City Council would hold its hearings, but he expected that the hearing on exceeding the “revenue-neutral” rate would be scheduled for later this month and that the general public hearing on the budget would happen in early September.