8/10/2008

By KAREN MIKOLS

Salina Journal

In addition to increased food and fuel prices, Salina residents soon could be paying more for city services, ranging from trash collection to recreational baseball.

"Our taxes have gone up every year we have lived here," said Sharon Kind, who moved to Salina about 10 years ago. "I think the gas prices have affected everything. It went from cars to homes and now affects our prices at the food market and other things we enjoy."

Monday, Salina city commissioners will consider a slew of increases, including property tax and fee increases.

"We've taken a comprehensive look at all of our rates and fees and have proposed some small level of adjustment to each one of them," said Rod Franz, director of finance.

"In one year, the adjustment of one of these doesn't have much effect, but over time, the small amount will add up to quite a bit," he said.

During the meeting at the City-County Building, 300 W. Ash, Room 107, commissioners will discuss raising the property tax levy for the first time in several decades, from the current 23.96 mills to 26 mills.

Property owners pay $1 for each $1,000 of assessed value. For example, a house valued at $100,000 would have raised about $275 worth of city taxes this year. If the proposed 26 mills passes, the owner of the same house would pay about $304 in property taxes -- a 10 percent increase for the city's portion of the property's tax bill in 2009.

In years past, the city relied on strong property valuation increases to make up budget increases. But with a only a slight increase in the property valuation, commissioners have to explore other options to fund the budget.

"With the budget being tough, we need to look at the fees and when they were last increased and try to play some catch-up in a reasonable manner and stay in line with the cost of living," City Manager Jason Gage said.

Utility increases

While some small fees are often overlooked, Franz said, water and trash rates are more frequently adjusted.

Mid-July, a water conservation fee went into effect. The water fees will increase again Nov. 1.

"Right now we have a declining rate structure," Director of Utilities Martha Tasker said. "The rate decreases the more water you use -- and that's not exactly conducive to water conservation."

So in November, the current rate of $2.54 a 100 cubic feet (for the first 2,000 cubic feet) will increase to $4.68 a 100 cubic feet.

Also slated to increase is the trash fee, which is proposed to increase from $12 to $12.60 a month on Nov. 1.

More pay to play

Also up for consideration during Monday's meeting is upping Parks and Recreation fees.

"This is probably the biggest across-the-board increase (for parks and rec)," Recreation Superintendent Chris Curtis said.

Increases range from 8 percent to 100 percent.

"Minimum wage went up to $6.55 an hour July 24," Curtis said. "Sometimes when you have a lead instructor at $7.25 an hour, if they're supervising someone at $6.55 an hour, you have to adjust the supervisor up a little more."

In 2009, Curtis said, the minimum wage will increase to $7.25 an hour.

"We're probably one of the few jobs that pays minimum wage," Curtis said. "We pay most jobs higher than that, but start at minimum wage when we're hiring 14- or 15-year-olds."

In the gymnastic classes, Curtis said, class prices have been stagnant for several years.

"The overall cost of doing the program increased a little bit, so we thought it was time to increase those," Curtis said. "It takes good people to run good programs. We have to pay them a little bit more and we sometimes have to pass that on. It's the price of doing business nowadays."

The increases were also an effort to round out program fees.

Still a reasonable price

Monday afternoon, Juan Ruiz signed his 12-year-old son, Jose, up for soccer at Salina Parks and Recreation. While the cost is $5 more than last time, at $25, Juan Ruiz said it's a reasonable price.

"Everything is going up," Juan Ruiz said. "I think it's fair."

Jose Ruiz said he enjoys playing in the Salina rec league.

"You get a shirt and to play, practice twice a week for five or six weeks," Jose Ruiz said. "Some charge $20 for a game and make you buy your shirt."

Even with the price increase, Juan Ruiz said he would like to see more programs, especially for his younger son, Juan Carlos "Junior" Ruiz, 7.

"There are no teams for the little kids," Juan Ruiz said. "("Junior") wants to play, too, but I think the YMCA is more expensive."

Running in the red

Even with an increase in recreation fees, Curtis said not all of the programs will cover their costs.

Especially with little money to spare elsewhere in the budget, which has resulted in cutting jobs through attrition and re-evaluating overtime policies.

"We're not trying to make it all up in recreation, but we will still run some operations in the red," Curtis said. "Even with some of our adjustments, we're not covering all of the cost associated with the program. We have to be fiscally responsible and have to make sure we're covering all the expenses we can. We will hopefully break even."

Franz said it's common for municipalities to run some programs in the red.

"For example, recreation programs provide a quality of life and entertainment for those in the programs," he said. "Things like EMS services, even though we collect money for charges, that barely covers a third of the cost of the program. The rest comes through tax dollars.

"It is pretty typical for that kind of operation to be financed in part by user fees and in part by general taxes with the idea that all of us benefit by just having emergency medical services available."

Another area where the city loses money is in parades. Franz said a parade permit is $15.

"But it's not uncommon to have four to eight officers called back into overtime to control traffic," he said. "It extensively exceeds the cost of the permit. If we charged the cost of what it costs to have a parade, no one would have a parade.

"It's a thing communities do to have quality of life."

Other tax increases

Commissioners also are considering a special sales tax of three-eighths of a cent to finance construction of a water park, which will be voted on in November. That tax will affect all who purchase items within Salina's city limits.

Eight years ago, Kind was fairly new to Salina, but she found herself voting in favor of a special sales tax to pay for a new swimming pool.

"I voted for it then because I think the kids need it," she said. "I think the families need it."

She still would like to see the proposed Salina aquatic park come to fruition, but she's concerned not all residents share her views.

"I know a lot of the older generation are not wanting to pay extra money for the kids to have this type of thing," Kind said. "I think it would benefit the whole community and bring people from other smaller communities."

In fact, she said, her daughter drives to Lindsborg or McPherson to take children to the pool.

"They're doing more carpooling with other families, but they're still driving to the other places so their kids can have a fun summer," Kind said.

Proposed hotel tax increase

A proposed 1.5 percent increase in the tax on hotel rooms in Salina will affect only people who rent hotel rooms in the city.

Of the city's 5 percent transient guest tax, the Bicentennial Center receives 2 percent, while the remaining 3 percent goes to Visit Salina, a program of the Salina Area Chamber of Commerce.

Commissioners are considering increasing the tax by 11/2 percent. Of that increase, 11/4 percent would go toward $2.2 million in capital improvements to the Bicentennial Center, and the remainder would go toward marketing.

Improvements proposed for the Bicentennial Center include a new heating and air system, expansion of the kitchen and installation of a new sound system.

Salina has about 2,000 hotel rooms, said Sylvia Rice, director of the chamber's Convention and Visitors Bureau. For a room that rents for $100 a night, she said an additional $1 or $2 would be added to the final bill.

At a work session earlier this year, Mayor John Vanier noted that the tax rate has been the same for 17 years.

"At first blush, I don't have a problem with adjusting the tax," Vanier said. "But I suggest (all the money collected) goes to improvements. If it is that important, it should be paid for first."

A new paradigm

Many fees are jumping this year, but Gage said he hopes the adjustments set the stage for more frequent evaluation.

"We looked at bigger fees such as water and sewer," he said. "The others were unintentionally ignored. I think as a practice, we will most definitely look at the full, comprehensive list of fees each year."

n Reporter Karen Mikols can be reached at 822-1416 or by e-mail at kmikols@salina.com.