The Hays City Commission on Thursday indicated it would not support a proposal from Hays USD 489 to use city sales tax funds for a massive capital improvement project.
Superintendent John Thissen gave a brief overview of the proposed project, which largely has been shaped by a volunteer committee, at the commission's work session.
Suggested renovations would total $89 million and include construction of a new elementary school to replace O'Loughlin and Lincoln, as well as improvements to the high school, middle school and other two elementary schools. The existing O'Loughlin building would be repurposed to house other district programs, including Early Childhood Connections and West Side Alternative School.
The school district Vision Team has been working to formulate a new infrastructure proposal following the 2016 failure of a bond election for facility improvements. Thissen said he is confident the community sees the need to improve its schools, and noted elementary school improvements have been identified as the highest priority.
"I truly believe the community will support a project," he said. "The issue is just a matter of identifying what project that is and how it's financed. I have no doubt that will occur. It's a matter of just working through this process, and I appreciate your time."
Project organizers are pursuing the possibility of a 0.5-percent countywide sales tax and are in the process of gauging support from other local governments, which would be asked to give their share of the tax to the school district.
All four city commissioners present Thursday expressed concern with the proposal and indicated they would not vote in favor of contributing the city's share of a countywide tax.
"I do not believe that outsiders, those people living in Rooks, Rush, Trego or Russell should pay for our schools," Commissioner Henry Schwaller IV said. "The reason why the citywide sales tax works and why we did it is because the outside people who shop here also use our streets. From time to time, they need fire or emergency help or police. ... Whereas they're paying for their own schools. Why should they pay for ours?"
The proposal calls for extending a half-cent sales tax currently effective in Ellis County for county building projects. That tax will sunset next year, and the school district is weighing the option of requesting an extension. Thissen said it would be a 25-year plan.
Several city commissioners said they were concerned with such a long duration.
Commissioner Lance Jones said most special-purpose sales taxes are short-term commitments, such as when Hays Aquatic Park and Bickle-Schmidt Sports Complex were funded.
"By tying up a half-cent, it doesn't seem like a lot. But that's cutting our taxing ability for 25 years," Jones said. "We don't know what we're going to need six, 10, 15 years from now. So any sales tax past five years I am 100-percent opposed to."
School representatives also have presented the project to city councils in Ellis and Victoria and are awaiting their decisions. Ultimately, the possibility of an extended sales tax would be brought to the Ellis County Commission, which could decide whether to place the issue on an election ballot.
The school's funding proposal takes into account the results of its public polling; 83 percent of participants said they supported some kind of tax increase to fund the schools. Thissen said many residents have expressed a preference for sales tax instead of increased property taxes.
The proposed funding structure also would increase property taxes by nine mills, amounting to $8.63 per month for a home valued at $100,000. The monthly fee for a $150,000 home would be $12.94.
Thissen said the vision team has identified possible alternate plans that would be less costly if the proposal does not receive the support needed to move forward.
Commissioner Sandy Jacobs acknowledged the need for improved school facilities and thanked the school district volunteers for their work on the project.
"Our schools need work. I don't think anybody's arguing about that," Jacobs said.
"To what level is where I think we have to be very judicious in our thinking. I think property tax is probably where the funding lies, but again, you can't get $89 million that way."
Vice Mayor James Meier was absent.
The commission also discussed renewal of commercial insurance policy, purchase of a new fire truck and revisions to the city's development policy, which will be voted on at next Thursday's regular meeting.
