The City of Wichita says it hasn’t raised its property tax mill levy in many years. For this year, the city is correct.
In 2015 the mill levy was 32.686, so the mill levy dropped by .001 for 2016. That’s a refreshing change. While the city says the mill levy hasn’t increased, the nearby table and summary above indicate otherwise.
It is true that the Wichita City Council did not take explicit action to raise this rate. Instead, the rate is set by the county based on the city’s budgeted spending and the assessed value of taxable property subject to Wichita taxation.
The total amount of property tax levied is the mill levy rate multiplied by the assessed value of taxable property. This amount has risen, due to these factors:
- Appreciation in the value of property
- An increase in the amount of property
- Spending decisions made by the Wichita City Council
Application of tax revenue has shifted
In 2005 the mill levy dedicated to debt service was 10.022. In 2016 it was 8.508. That’s a reduction of 1.514 mills (15.1 percent) of property tax revenue dedicated for paying off debt. Another interpretation of this is that in 2005, 31.4 percent of Wichita property tax revenue was dedicated to debt service. In 2016 it was 26.0 percent.
This shift has not caused the city to delay paying off debt. This city is making its scheduled payments. But we should recognize that property tax revenue that could have been used to retire debt has instead been shifted to support current spending. Instead of spending this money on current consumption — including economic development spending that has produced little result — we could have, for example, used that money to purchase some of our outstanding bonds.
What the city council says
Despite the data that is readily available in the city’s comprehensive annual financial reports, some choose to remain misinformed or uninformed. The following video from 2012 provides insight into the level of knowledge of some former elected officials and city staff. Based on recent discussions with city officials, things have not improved regarding present staff.
Looks like the city’s mill levy tax rate grew .7 mills since 2007. I don’t remember any city council votes letting this property tax increase reported in the news media. These small, fractional increases when added to appraiser’s hikes do add up for higher property tax bills for homeowners and businesses.