Property taxes were a big discussion topic at last Thursday’s meeting of the Parsons City Commission.
The discussion came during a public hearing for the city’s decision that it may exceed the revenue neutral rate, a law that requires tax entities to give notice and have a public hearing if they intend to exceed the RNR. The RNR is the property tax rate that would raise the same amount of tax money, in this case, in 2026 as what the city raised from its levy that supports the 2025 budget. If the process isn’t followed, taxing entities would not be able to keep the extra money generated from the levy that exceeded the RNR.
The revenue neutral rate for the city’s 2026 budget is 57.139 mills. The city’s mill rate that supports the 2025 budget is 57.899. The city filed notice that it intends to exceed the RNR by possibly setting the levy at 62.140 mills, although commissioners and city staff indicated the levy may not be that high once the budget is discussed and approved.
Property for a city resident in Parsons USD 503 has a tax levy of 212.248 mills. That mill rate includes the city, county, community college, library and other smaller taxing entities.
The owner of a $100,000 house in that taxing district pays an estimated $2,440 in property taxes for all taxing entities. Of that amount, about 27%, or $665.72, goes to support the city’s spending. If the city increased the mill levy to 62.140 for 2026, that homeowner would pay $48.89 more a year in property taxes to support the city’s spending.
A handful of people spoke at the public hearing last Thursday.
State Rep. Dan Goddard of Parsons, who formerly served on the city commission, said he understands how difficult budgeting is. As a legislator, he said he gets more calls about property taxes than any other topic. He asked commissioners to consider some rhetorical questions. He said Parsons has a declining population and he wanted commissioners to consider the impact property taxes have in such a situation. He asked if families were leaving because of property taxes and moving nearby for a more favorable tax environment.
If someone is looking to move a business, he or she would look at a number of factors before deciding where to place it. Property taxes would be one consideration.
He also mentioned the multi-page publication in August in the newspapers showing property owners with delinquent taxes. Some of the
See CITY, Page 6.
delinquent properties may end up as a blight on the community if the owners abandon the properties, which is an additional burden on the city, he said.
He also suggested commissioners take a deep dive into the budget to see what kind of return they are getting for spending the proceeds of property taxes.
Commissioner Leland Crooks asked Goddard to look into a land use tax when he returns to Topeka. This would tax the value of the land only and divorces the building from the land, Crooks said. That would increase taxes for empty lots and may force development.
Goddard noted that the state eliminated its 1.5 mill levy for education and reduced the sales tax on food.
Lou Martino, who serves as president of the USD 503 Board of Education, said Goddard brought up good points. But there are two sides to every coin. He said school vouchers, which would divert money away from public schools, could increase the burden on taxpayers. He noted that state lawmakers only fund special education at 64% in Kansas instead of the 92% level required by Public Law 92-142.
“That’s killing us. Because we have to put millions of dollars from our budget to go to Tri County to take care of all these special needs students that we have in our district,” Martino said.
The 503 district also has the largest number of special needs students, most students living in poverty and hosts more foster kids than do other districts.
These strain the budget and make for difficult decisions each year, he said. One option is to raise the mill levy. The latest stats show that USD 503 lost 67 students, which means the city and the county need to find a way to attract young families.
Tim Poland said he and his wife moved here about two years ago from Bentonville, Arkansas. He has grandchildren here so that’s the reason for the move, even though he questioned the wisdom in that after getting his tax bill. He said his property taxes doubled in Parsons compared to what he paid in Arkansas. What rubs salt in that wound is the number of abandoned houses in town and the poor condition of the roads, he said.
Jean Reel agreed about the condition of the houses and the high taxes.
Taylor Moreland said she considered buying a home but decided against it because of the cost. She said many people cannot afford taxes now, and they won’t if the city raises the mill levy. Young people will leave rather than paying a higher tax bill.
Dan Ficarella said he and his significant other, Cindy, moved to Parsons from Boise, Idaho, four years ago. He said he pays 138% more for property taxes here than he did in Idaho. He said other people are struggling too, and he has bought people groceries because they could not afford food.
He, too, noted the condition of the abandoned homes and the roads, adding that South 32nd Street hasn’t been improved since he moved here. He said he lost his house in Idaho and he has concerns about that happening here to others.
“I don’t want to see people lose their house because they can’t pay taxes. And that’s where it’s going,” Ficarella said.
He said he doesn’t want to have to move but it may come to that.
Mayor Verlyn Bolinger said road repairs cost more now compared to four years ago. He also noted that since he’s been on the commission it’s rarely raised the mill levy much if at all.
Commissioner Kevin Cruse told Ficarella about other initiatives in the city to reduce the number of abandoned homes, including the land bank that receives or purchases abandoned homes in the hope of returning better homes to the community and the city’s demolition program. Both these programs take time because of the legalities involved in contacting all property owners or heirs to these properties, he and Crooks said.
He said in the past the city could overlay a residential street for $12,000 to $15,000. Those costs are now $40,000 to $50,000.
Cruse said the commission and city staff try to hold down spending but there is a breaking point when costs continue to rise. He added that 60% of the city’s budget goes toward public safety, including the police and fire departments.
He and other commissioners also said just because they pass a resolution on the revenue neutral rate doesn’t mean that will be the final number.
City Manager Jeff Cantrell said if you run the city like a business, you expect to maintain the current level of services, which increases
the costs of running the city because of the increased costs all departments are seeing.
After the discussion, the commission approved a resolution setting the RNR at 62.140 mills.
In other matters, the commission: — Agreed to allow the Kansas Kastle to close a portion of Broadway and 17th streets from 5 to 10 p.m. on Oct. 18 for a Bender-themed bash with live music and food. The former First Presbyterian Church is being renovated. It remains a venue for weddings and events and the owner is creating six rooms for renting through Air BNB.
— Agreed to create a Rural Housing Incentive District at 1718 Main so A Penny Saved LLC can create two apartments on top of the former Studio One building.
