Industrial revenue bonds, a change in policy position and the annual business meeting were all highlights of the Emporia City Commission’s first session of 2022 Wednesday.
During the regular action meeting, commissioners approved a number of large-scale financial items including a resolution approving the option for S&S Quality Meats to purchase 2015 industrial revenue bonds that were originally issued for Smoots Enterprises which is now operating under the S&S monicker. The bonds were issued in 2015 to finance the construction of the Fanestil Meats refrigerated warehouse and fresh market at 4700 West US Highway 50.
The purchase of the bonds will allow them to be refinanced to fund the construction of Fanestil’s new production facility located adjacent to the market and warehouse. City Attorney Christina Montgomery says Wednesday’s action reverses a prior decision related to the refinancing and purchase of the same bonds originally set to be approved in the fall of 2020.
Montgomery says that action was never finalized.
Commissioner Rob Gilligan says encouraging and fostering the growth of existing local businesses needs to continue to be a major focus for the city in the coming year.
RCB Bank, the owner of the 2015 bonds, has restructured its loan and will be purchasing the 2022 bonds approved Wednesday.
Wednesday’s action followed a separate but related item approved by commissioners in December where the commission accepted a Federal Emergency Management Agency grant to assist with demolition of the current Fanestil production facility on South Kansas Highway 99.
These are just the latest steps in efforts by Fanestil to move all operations from Highway 99 to US Highway 50 and move its facilities out of the Cottonwood River floodplain.
In other business, commissioners approved the city of Emporia’s 2022 legislative statement in which it states the city’s goals and stances on several items upcoming as part of the 2022 Kansas Legislative session. One of the items in the statement that has gained some attention is the city’s stance on Kansas Governor Laura Kelly’s plan to abolish the state’s 6.5 percent food sales tax.
In the original draft, the city noted its opposition to the plan with the statement reading, “we further generally oppose any exemptions to the base of state and local taxes, including sales of food. Any change in the method of taxing food should be accomplished by a system of income tax credits or direct rebates, rather than complete exemption.”
Newly appointed Mayor of Emporia Becky Smith says the city’s opposition was not to the abolishment of the state tax itself, but rather the potential elimination of local sales tax collections of two percent. Smith tells KVOE News the city would have a difficult time functioning financially if that two percent tax were to be eliminated locally.
Commissioners voted unanimously to edit the statement which now reads as such:
“We are supportive of initiatives to eliminate sales tax on food at the state level. Should the state eliminate state sales tax on food, we believe municipalities should retain the ability to tax sales of food as food tax generates twenty to twenty-five percent of the total sales tax revenue in the City of Emporia.”
According to a news release from the office of Governor Kelly back in November, Kansas is one of just seven states which fully taxes groceries and boasts the second-highest food sales tax rate at 6.5 percent.
Governor Kelly estimates that the legislation could help an average Kansas family of four save up to $500 a year in grocery bills. The bill comes as Kansas revenues have continuously come in well above projections over the past year.
The 2022 legislative session is set to begin next week.
Following the annual state of the city speech presented by former Mayor Gilligan, the commission adjourned the action meeting sine die and moved into the city’s annual business meeting.
During that time, the oath of office was administered to commissioners Danny Giefer and Susan Brinkman who both were both re-elected to the commission back in November as well as newly elected commissioner Jamie Sauder who has been serving on the board in an interim capacity since the early departure of longtime commissioner Jon Geitz in November.
Additionally, Smith was appointed to serve as mayor of Emporia for 2022. She says there are several challenges ahead of the city over the next 12 months.
Giefer was appointed to serve as vice-mayor for 2022.
Separately, commissioners approved surety bonds for the City Manager, Clerk and Treasurer and designated financial institutions. The commission also designated financial institutions and appointed members to serve on various boards including the Regional Development Association, JEDAC, Emporia Recreation Commission and others before officially adjourning the meeting.
The Emporia City Commission will reconvene at 10:30 am next Wednesday for a study session inside the Municipal Courtroom at White Auditorium.
