FORT SCOTT, Kan. — Bourbon County commissioners on Monday tabled a decision on whether to reserve the authority to exceed the state’s revenue neutral rate. The commission plans to vote July 20, after Commissioner David Beerbower returns and the board reviews a complete budget for the county’s employee benefits fund.
Matt Lawn of Baker Tilly, the county's contracted financial advisor, recommended commissioners notify the county clerk of their intent to exceed the revenue neutral rate while capping any levy at last year's rate of 56.669 mills, which raised $8,147,172 in property taxes. State law requires the notice by July 20, the same day the commission meets next.
"We are not setting a mill levy tonight," Lawn said. "We are potentially setting a cap above which you may not [go]."
The revenue neutral rate — the levy that would generate the same property tax dollars as last year — would be 54.664 mills, or about $7.86 million, roughly two mills below the current rate. Because assessed valuation grew about 3.7%, holding the mill levy flat would bring in approximately $309,000 more than staying revenue neutral, Lawn said.
Lawn said that a flat levy still costs taxpayers more even though the rate doesn't change.
"The calculation for taxation is rate times base. So their base did go up even though their rate does not, so it is indeed an increase in taxes," he said, estimating the flat levy works out to about $22 more per county resident.
Commissioners also reviewed a scenario cutting the levy 15%, about seven mills, which would reduce collections by roughly $718,000 — about $50 per resident. Lawn recommended against it.
"Lowering it that much would severely hurt your ability to operate, I believe," he said. "I do not think that anybody can accuse this organization of levying too much, spending too much money based on what I've seen in the several weeks that I've been working on your budget. I don't see waste anywhere."
Lawn's preliminary general fund forecast projects the county will end 2026 with a fund balance of about $594,000, up $64,000 from the start of the year, but shows a $201,000 deficit in the draft 2027 budget even at the capped levy. He said he'd like to see the county build its general fund reserve to 30% to 35% of expenditures, or roughly 90 to 120 days of operations.
Commissioner Mika Milburn-Kee said the county gave itself authority to go above the prior levy last year and that she wouldn't repeat it.
"I won't do that this year. I'm not going to fight all summer long just to bring it back," Milburn-Kee said. "If we don't intend to go past and you're saying that we can make it work right now, I'm not doing it."
Commission Chairman Samuel Tran raised the possibility of levying extra revenue as protection against legal costs after litigation strained this year's budget.
"I don't have a crystal ball in front of me that tells me what's going to happen next year in terms of the courts, in terms of what goes to the courts," Tran said. "But if past experience is an indicator of future, to me it's like should the county not protect itself by levying a mill or two just for legal fees?"
Commissioner Joe Allen said his concerns were aging equipment and employee pay rather than litigation, citing a lack of employee raises, a needed ambulance, and deteriorating Public Works equipment.
"I really would like to see raises at some point. They haven't had raises in however long — three years," Allen said.
Tran said he shared Allen's sentiments, but was concerned about the cost of employee benefits for the upcoming year. Lawn agreed to bring a full employee benefits fund budget to the July 20 meeting after Tran said last year's benefits costs blindsided the board late in the process.
Commissioner Gregg Motley said he supported keeping options open.
"I would be fine with giving ourselves flexibility," Motley said. "Emergencies happen, unforeseen things happen. So we just need some flexibility right now."
Lawn offered a broader defense of counties declining to stay revenue neutral.
"County governments do not operate richly," Lawn said. "I don't believe the revenue neutral rate should ever be a consideration for a county unless that county is growing considerably and there is a positive, non-strained economy."
Tran, Motley and Allen supported delaying the decision until the July 20 meeting so Commissioner David Beerbower could participate.
“I gave Commissioner Beerbower my word,” Tran said. “I don’t want to vote on anything in his absence.”
Milburn-Kee objected to the delay.
“We’re constantly waiting on somebody that’s not here to make decisions for this county,” she said. “My input is Matt said we can make it work at the 56 flat rate. I’m willing to do that. I don’t even want to do that. I’m willing to.”
She also reiterated her opposition to giving the county authority to levy more.
“Why does everybody want more money? We’ve proven time and time again, if we levy it, we will spend it. There’s plenty of things this year that we would have done that we don’t have to do if we had the money,” she said. “So we have proved time and time again, if we levy it, we’ll spend it. So if everybody wants an excuse to raise it and levy it, then consider it spent. That’s all.”
If commissioners authorize a levy above the revenue neutral rate, the county must complete the state-required notification process and hold a public hearing before adopting the budget.
