No property tax relief for most with new Wichita budget

WICHITA, Kan. (KSNW) — A phrase that will impact your property taxes was a large focus of Tuesday’s Wichita City Council meeting. It is revenue neutral rate. Council members had to decide whether to exceed the RNR before voting on a new budget.

Revenue neutral rate

City Treasurer Mark Manning told the City Council that if the City levies even a dollar more in taxes than the previous year, it is exceeding the revenue neutral rate.

He said RNR is state law. All jurisdictions that have property tax — cities, counties, school districts — must have a public hearing before exceeding the RNR.

Manning used the graphic below to explain that the mill levy would have to decrease in order not to bring in extra property tax money. The City’s mill levy has remained flat for 29 years.

YearMill levy rateTaxes levied2023 Adopted32.762$139,120,3782024 Revenue Neutral Rate30.038$139,120,3782024 Proposed32.762$151,736,955

During Tuesday’s public hearing, several citizens complained to the Council about their higher property taxes.

“There’s nothing we can do when the county government increases appraisals,” Mayor Brandon Whipple said.

He said 70% of the City’s budget goes toward public safety. Police, fire, and public works have to reach farther as more homes are built.

“If you have new houses that are coming online, we have to get police and fire to those houses and, say, developments out west,” Whipple said. “When they start paying property taxes, that technically adds more of those property taxes to our budget. We turn around and can pay for public safety.”

Exceeding the RNR

“I don’t believe that we’re seeing true property growth at the rate that matches the revenue neutral rate,” he said. “I just struggle with … to have a projected 2023 surplus and not giving it back to the taxpayers right now when they need it the most.”

Frye pointed out that staying revenue neutral would cost the City $12.6 million, which he says is the amount of the City’s 2023 surplus.

“I think it’s irresponsible for the staff, for the City to hold onto a surplus and not give it back to the taxpayers when they need it,” he said.

Frye made a motion to reduce the mill levy rate, and Council Member Becky Tuttle seconded it.

But the mayor then made a substitute motion to exceed the RNR. Vice Mayor Mike Hoheisel seconded it. The mayor then called for a vote on his substitute motion. It passed four to three. Frye, Tuttle, and Council Member Jeff Blubaugh voted against it.

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The budget and capital improvement

After that vote, the Council took up the 2024 annual operating budget and the 2024-2033 capital improvement program.

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Before the Council voted, Council Member Brandon Johnson said he supports the budget.

“It allows us to catch up on quality-of-life opportunities,” he said. “And being that it’s 70% salaries, three-quarters of the budget is things that governments should do anyway, and with the additional costs that we are facing, I think it gives us a few steps forward to the government that Wichitans deserve.”

Frye agreed that there are a lot of positives in the budget adding to public safety. But he said the City needs to address some long-term shortfalls now rather than later.

“We’re robbing Peter to pay Paul right now, and we’re waiting to address the core challenge of ’25, ’26, and ’27 then instead of now and we need to start addressing those expenses,” he said.

The Council voted four to three in favor of the bulk of the budget and the capital improvement program. Again, Frye, Tuttle and Blubaugh were the three no votes.

Property tax relief, Cowtown, and water bottles

The approved budget and capital improvement program include three items that were added last week:

Property tax relief for senior citizens, families and disabled veterans who meet certain income guidelines,