IOLA, KANSAS
OFFICE OF THE ALLEN COUNTY CLERK
October 18, 2000
The Allen County Board of
Commissioners met in regular session at 8:30 a.m. with Chairperson Dick
Works, Commissioner Jean M. Barber, Commissioner Kent Thompson, and
Sherrie L. Riebel, County Clerk.
Commissioners corrected
and approved the minutes of the August 23, 2000 meeting.
Bill King, Public Works
Director, discussed the replacement for Bob Chase on the airport advisory
board. No action was taken at this time.
Bill discussed an employee
on work compensation light duty who had left in the middle of the day.
Mike Russell, KIKS Radio
Station, requested to use the hallway on the upper level for broadcasting
for Farm City Days. Commissioners approved.
William Tucker and Charles
Sesher, Rural Water District #10 Board members, discussed relocating a
water line while bridge construction is going on. A bid from Don Cress for
$140,000 for boring underneath the creek was received. Bill explained that
they could hang the water line over the creek until springtime when the
bridge is done and they could reattach it to the bridge. This suggestion
would be reasonably cheaper than the alternative. William Tucker explained
that the RWD could come up with $70,000. They have $30,000 on hand and
could get a loan for $40,000. After much discussion, a call was made to
the engineer of the bridge project, questioning several different options.
A temporary fix was discussed and after the project is complete the water
line could be hung back on the bridge. Commissioners suggested to the RWD
to fix a temporary water line until the bridge is finished then hang it
back on the bridge.
Department heads presented
a tray of refreshments as a "Thank you" for Bosses Day to the
Commissioners. Appreciation was expressed for all the Commissioners
decisions, support and actions throughout their terms.
Ronald D. Moore, Allen
County Sheriff, discussed activities in Allen County in which his
department has been involved.
Donald Leapheart, City of
Iola Fire Chief/EMS Director, discussed the disaster drill held Monday,
October 16, 2000. Chief Leapheart explained the date had been changed
without notifying Allen County Emergency Preparedness. Dave Beck, Allen
County Emergency Preparedness Director, was able to participate in the
actual drill, but not the planning. Chief Leapheart explained they had
found some things that need worked on, and they will be addressing this.
Chief Leapheart discussed
the recertification requirements and reimbursements. He explained the
procedure is held only once a year and it is mandatory for all volunteers
to attend the certification class offered in Allen County. They will not
be reimbursed if the volunteers are not in the Allen County class.
Commissioners approved the mandatory attendance.
Chief Leapheart discussed
a new ambulance request for 2001 Budget as well as remounts for the next
few years. Discussion followed on remounts.
Heather Lewis, Allen
County Extension Agent, discussed the Extension office door. Commissioners
went to view the door. Commissioners approved Ms. Lewis to get prices
Commissioners reviewed
Resolution #200014, Alan Weber, County Councilor, had reviewed earlier.
Resolution No. 200014, County of Allen, Property Tax Exemption/Abatements
for Economic Development,
A. BACKGROUND
On August 5, 1986 Kansas
voters approved a constitutional amendment which authorizes tax
abatements and exemptions for purposes of economic development. The
constitutional amendment permits counties and cities to exempt from
property taxes all or any part of buildings, land and tangible personal
property used by new business exclusively for manufacturing, research
and development, or the storing of goods traded in interstate commerce.
An exemption/abatement may also be granted for existing buildings or new
expansions to existing buildings, the land, and associated new personal
property for these same purposes to facilitate the expansion of an
existing business if new employment is created. The exemption/abatement
may extend for up to 10 years. In 1994 the State of Kansas required
municipality to perform a cost-benefit analysis before granting any
exemption/abatement.
B. PURPOSE
The two primary objectives
of the County of Allen in granting tax exemptions/abatements for
economic development aim to provide needed jobs and expand the economic
tax base of the County. It is the policy of the County that private
businesses should not be subsidized with public funds, the indirect
consequences of tax exemption incentives, unless the public benefits
exceed the costs, as determined by the Board of Commissioners.
The purpose of the policy
is to establish standards for considering property tax
exemption/abatement requests. In addition, the Board of Commissioners
has recognized the need for the responsible application of economic
development abatements, because of the potential impact on the taxing
authority of other units of government.
While each request for a
tax exemption/abatement must be considered on its own merits, the Board
of Commissioners recognizes the need and desirability of a policy
statement outlining its general attitude toward such requests. This
statement is intended to provide a guide to the Board of Commissioners's
position regarding tax exemption/abatements for industrial prospect, to
businesses considering relocation or expansion and to organizations in
the County of Allen concerned with promoting economic
development.
C. GENERAL
ABATEMENT DEFINITIONS
1. For the purpose of this
policy, the following definitions shall apply:
a. "Abatement"
refers to a partial reduction of property taxes for the applicant
firm.
b. "Applicant"
shall mean and include the business, property owner or owners, and
their officers, employees and agents.
c. "Associated
therewith" as used with respect to tangible personal property
shall mean being located within, upon or adjacent to buildings or
added improvements to buildings.
d. "Commenced
Operations" shall mean the start of the business activity housed
in the building for which a tax exemption-incentive is requested.
e. "Cost-benefit
model" is the League of Kansas Municipalities software which was
developed as a result of the State requirement and mandate.
f. "Economic
development purposes" shall mean the establishment of a new
business, the expansion of an existing business engaged in
manufacturing articles of commerce, conducting research and
development, or storing goods or commodities which are sold or traded
in interstate commerce, which results in additional employment.
g. "Exemption"
refers to a 100% reduction of property taxes for the applicant firm.
h. "Expansion"
shall mean the enlargement of a building or construction of a new
building, the addition of tangible personal property, or any
combination thereof, which increases the employment capacity of a
business eligible for a tax exemption-incentive and which results in
the creation of new employment.
i. "Manufacturing
articles of commerce" shall mean a business engaged in the
mechanical or chemical transformation of materials or substances into
new products, as defined in the Standard Industrial Classification
Manual.
j. "Research and
development" shall mean the application of science or technology
to the improvement of either the process of manufacturing or
manufactured products or both.
k. "Storing goods or
commodities which are sold or traded in interstate commerce"
shall refer to the business of storing property which may be exempt
from ad valorem taxation under the provisions of K.S.A. 79-201(f).
l. "Tangible
personal property" shall mean machinery and equipment used during
the term of the tax exemption which may be granted.
D. POLICY
1. Only those firms which
qualify under current Kansas law will be eligible for an
exemption/abatement. In general, this applies only to manufacturing,
research and development, and interstate warehousing businesses.
2. Special Assessments are
not eligible for exemption.
3. Exemptions/abatements
for businesses that would compete directly with existing businesses will
not be encouraged unless the competing businesses have received or been
offered similar incentives or unless there is substantial overriding
benefit to the County as a whole.
4. The period of
exemption/abatement shall not exceed 10 years.
5. The County will consider
granting property tax exemptions/abatements only upon a clear and
factual showing of a positive net public benefit through the advancement
of its economic development goals, including the creation of quality
jobs and the stimulation of additional private investment. The Board of
Commissioners, in determining the amount and term of a tax
exemption/abatement to be granted, may consider various factors
including, but not limited to the following in regard to the
cost-benefit analysis.
a. The net benefit to the
County, city, school district and any special taxing districts for not
more than 10 years.
b. The length of time it
takes for the net benefits to equal the amount of property taxes
abated for the County, city, school district and any special taxing
districts
c. The length of time it
takes for total benefits to equal total costs for the County, city,
school district and any special taxing districts.
6. The Board of
Commissioners reserves the right to grant or not to grant a tax
exemption/abatement under circumstances beyond the scope of this policy.
However, no such action or waiver shall be taken or made except upon a
finding by the Board of Commissioners that a compelling or imperative
reason exists and is declared to be in the public interest.
7. No exemption/abatement
granted by the County shall be transferred as a result of a change in
the majority ownership of the business. Any new owner shall file a new
application for a property tax abatement. Further, the County shall be
notified by the business of any substantive change in the use of a tax
exempt property.
E. PROCEDURES
1. All firms interested in
requesting consideration for a property tax exemption/ abatement shall
complete an application form and the required information on the firm.
All information submitted to the County must be verifiable. The
applications will be submitted to the Allen County Clerk along with an
application fee of $150.00.
2. The County Commission
will perform a cost-benefit analysis using the requested property tax
exemption/abatement level and term. All charges incurred by the county
in obtaining a cost benefit analysis will be paid by the applicant.
3. The Board of
Commissioners may issue a letter of intent, setting forth in general
terms its proposed plans for granting a property tax exemption/abatement
and any conditions thereto. Such letters of intent shall be issued only
with the approval of the Board of Commissioners and as an expression of
good faith intent, but shall not in any way bind the County to the
granting of an exemption/abatement. Letters of intent will only be
considered if the eligible business has made proper application. Such
letters of intent shall expire six months after issuance, but may be
renewed.
4. Prior to the granting of
any initial tax exemption/abatement, the Board of Commissioners shall
hold a public hearing on the granting of such exemption/abatement.
Notice of the public hearing shall be published at least once seven days
prior to the hearing in the official County newspaper and shall indicate
the purpose, time and place of the public hearing. In addition to the
public hearing notice, the County Clerk shall notify in writing the
School District, Allen County Community College and any other affected
taxing districts about the public hearing and the proposed property tax
abatement/exemption as early as possible, and provide them with a copy
of the cost-benefit analysis and all background materials.
5. After the public hearing
the Board of Commissioners shall adopt a resolution specifying the
percentage of abatement each year and the length of the abatement. The
ordinance will require two readings.
6. The County Clerk will
submit all necessary documentation to the County Appraiser's office. The
owner(s) of the firm will also complete the forms prescribed by the
Director of Property valuation.
7. The extent and term of
any tax abatement / exemption is subject to annual review and
determination by the county commissioners and the Board of Tax Appeals
to insure that the ownership and use of the property and any other
qualifying criteria of the business for the abatement / exemption
continue to exist. By January 1st of each year the owner(s) of all
property which has been exempted / abated shall present to the County
Clerk a completed application for exemption on forms prescribed by the
Director of Property Valuation for initial review by the County
Commissioners. Said owner(s) will also submit any other information
requested by the Commissioners. In the event the County Commissioners
determine there have been any material changes in circumstance which
would warrant a change in the abatement / exemption they may direct a
new cost benefit analysis be done at the cost of applicant. Renewal
shall be granted or denied on or before February 1st of each year
provided all information has been properly submitted. If any changes are
needed in the abatement / exemption terms due to change in circumstance,
said changes will be accomplished by amending the tax relief resolution
enacted for the property in question.
8. On or before March 1st
of each year, applicants who continue to meet the terms and conditions
of the exemption / abatement must renew the same by submitting their
forms along with the County Commissioners report to the County
Appraiser's office to be filed with the Board of Tax Appeals.
Commissioner Thompson moved
to approve Resolution 200014. Commissioner Barber seconded, motion passed
3-0-0.
Alan Weber, Allen County
Councilor, discussed a tax claim concerning property owned by Ivan
Strickler.
Commissioners asked Alan to
draft a formal letter concerning leases on the airport farmland. Some of
this land has been put into the CRP program, and some will be planted to
grass to attempt to prevent erosion.
Sandra Drake, Allen County
Appraiser, discussed Ivan Strickler's tax claim.Alan will research the law
and work with Strickler's attorney to resolve this issue.
Sandra discussed businesses
who move their equipment around as of January 1st of every year just to
keep equipment off of the tax roll. Discussion followed on rules and
regulations required by state, and the need for the owners to prove they
were paying taxes on that equipent in another county,
Commissioners approved the
following documents:
a) Clerk's vouchers
totaling $ 50,000.09
b) Clerk's Journal Entries
# 85
With no further business to
come before the board, the meeting was adjourned until October 18, 2000,
at 8:30 a.m. in the Commissioner's room of the courthouse.
