ROBERT PIERCE
• Leader & Times
After turning down an increase in the county’s mill levy for Fiscal Year 2025 and continually hearing from constituents of the need to improve roads, Seward County officials were left looking for ways to help with that need financially.
With that in mind, county commissioners approved the sale of $6.1 million in bonds, and now, they will likely be looking to taxpayers to approve a half-cent sales tax to help fund road repairs.
Knowing the importance of roads to the county’s continued growth and safety of its citizens, Administrator April Warden said the idea for a sales tax came about after county officials did a complete assessment and core sampling of 137 miles of asphalt roads in the county.
“We continued to evaluate the issues of rutting, washboards, pot holes, loose aggregate, dust control, the crowning of the roads, the width of the roads, gravel quality, culvert cleanouts and new culverts that are needed, signage on the 446 gravel and 100 miles of earth dirt roads we have in Seward County,” she said.
Warden said Seward County has 683 miles of road, and initially, these roads were not built to handle excessive traffic, heavy trucks, large equipment and the overall higher demand they now experience.
“Many of the roads were also built before we even had the safety standards of today,” she said. “Technology and economic development have come a long way, and we’re extremely thankful for what the future holds in Seward County.”
While many exciting things are coming to fruition in local economic development, Warden said Seward County still has a great need for rehabilitation of its roads and transportation system.
“Energy and agriculture are the main economic drivers of our area, so when we think about what we’re home to, it’s pretty amazing,” she said. “Seward County is home to National Beef Packing, National Carriers, Arkalon Ethanol Plant, Conestoga, cotton warehouse, DCP National Helium, Groendyke Transport, Air Products, Sunflower Electric, Keating Tractor, Heifer Source, Seaboard, multiple dairies, feedlots and many family farms.”
However, Warden said plain and simple, the county has struggled to maintain its roads.
“Due to budget constraints, the inflation of materials, fuel, parts, equipment and workforce issues, a large fraction of our roads have deteriorated,” she said.
So, Warden said, improvement starts with a process that includes several steps, including funding of repairs and maintenance and upkeep in the short term and in the long term, and commissioners have had several strategic planning session to consider the county’s sources of revenue, the necessity of a mill levy increase following the Revenue Neutral Rate process, a bond issue, a sales tax and what services could be cut.
“We have been applying for grants, and we did receive an HRRR, which is High Risk Rural Roads, and a Cost Share grant for two projects,” she said.
Commissioners have also hosted quarterly town hall meetings where Warden said constituents have spoken loud and clear against a mill levy increase and for increasing expectations of roads traveled for work, transporting of goods and services, access to health care, school systems and tourism and consumers who visit the community.
“The resources that are available at city, county and state level are very limited, so our ask of the taxation committee at both the House and Senate level is to please pass a bill allowing Seward County the opportunity to go to our community for consideration in voting for a half-cent sales tax to help with the cost of repairing, maintaining and sustaining our roadways in Seward County,” she said.
Part of that process is complete as Warden and Commission Chairman Scott Carr recently testified before the Kansas House Tax Committee, and House Bill 2004 was passed to allow the sales tax to go before voters in Seward County. Warden said she and Carr are scheduled to go before the Kansas Senate Taxation Committee in the near future to get a bill passed before the vote can move forward, though.
Should the tax be passed by voters, it would be in place for 10 years, and Warden did say the tax could be revisited at that time. If a bill is passed in the Senate to allow the vote to take place, the sales tax issue would be put on the ballot to vote in November.
Warden said revenue from current sales tax has remained stable, and if this trend continues, the half-cent sales tax should generate about $2 million a year for the county.
Warden said taking into account the remarks made at town hall meetings, public hearings, budget work sessions and budget hearings, county leaders felt the sales tax was a much more favorable option than a property tax increase.
“A sales tax is paid by non-residents,” she said. “What that means is those who drive to our county to work, to visit, to shop, to stay and all citizens contribute to the tax. It’s not just those who own property.”
Warden said the tax will provide additional revenue streams and help alleviate the burden on property taxpayers by offsetting costs for essential road and bridge services and infrastructure improvements.
“County government doesn’t have the revenue streams other taxing entities do,” she said. “Therefore, we rely heavily on ad valorem or property tax.”
Warden provided a list of revenue streams county government may or may not have, but other entities do such as:
Taxes
• Property taxes: A primary source of revenue for both cities and counties
• Sales taxes: A primary source of revenue for cities
• Income taxes: A source of revenue for cities, especially in more urbanized areas
• Local ordinance violations: Cities can generate revenue by issuing tickets for illegal parking, barking dogs and other violations.
User Fees
• Utilities: Counties can charge fees for water, wastewater, gas, electricity and solid waste services.
• Transit: Counties can charge fees for transit operations.
• Tuition: Counties can charge fees for tuition.
• Highway tolls: Counties can charge fees for using highways.
• Parks and recreation: Counties can charge fees for using parks and recreation programs.
• Parking: Cities can charge fees for parking on busy streets.
Because of this, Warden said counties often have to raise mill levies or adopt a sales tax.
“The county has experienced declines over the past years in economic activity and consequently property values,” she said. “We’ve looked at budget cuts. We’ve done hiring freezes, reductions in staff, depleting cash surpluses, deferring replacements of equipment and maintaining infrastructure to the point it’s put us in the position we’re in today.”
