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Wellington Council approves sales tax referendum after lengthy debate (updated 10:45 a.m. Wed.)

SRMC more funding to vote

by Tracy McCue, Sumner Newscow— The Wellington City Council’s decision to bring a sales tax referendum to the people came after a lengthy discussion and soul searching Tuesday night at the council chambers.

The council voted to ask city voters on April 3 to increase the sales tax a half cent for a three-year period that will be designated to Sumner Regional Medical Center. The referendum will be placed on the April 3 Wellington City Election ballot.

The original proposal Tuesday was to have a sales tax to sunset in 10 years, but the council felt that would be too long and debated between three and five years.

Wellington currently has a sales tax rate of 8.05 percent. Kansas takes out 6.3 percent with 1.75 percent going to the city and county combined. The 1.75 percent includes .25 percent to SRMC which was voted on by the people in 1994 when St. Lukes and Wellington Hospital combined.

The city has a 1.0 sales tax which goes into the general fund. Sumner County has a .5 sales tax for health services which is designated for the Sumner Health Department, Sumner Mental Health Center and rural ambulance services. The one cent jail sales tax was sunset in 2011.

Wellington City Manager Gus Collins said the .25 sales tax implemented in 1994 will be sunset in 2012. He suggested that the council should allow that to sunset provided the city voters pass the .5 percent sales tax raise in April.

So in 2012 Wellington would have a sales tax percentage of 8.55 percent until next year in late 2013 in which it will dip back to 8.30.

Councilman Dana Anderson had suggested a five-year sunset on the proposed sales tax since many businesses budget up to five years.

But many other councilmen disagreed thinking the voters would not go for such a lengthy period.

Earlier in the day, Collins secured a $120,000 annual stipulation from the Sumner County commissioners for the next three years, provided the county has the funds to give. See story here.

That will help, Collins said, but it is still not enough to keep the hospital financially secure.

Despite the dire straights of the hospital, the council were in agreement that it is going to be a tough sell especially in these economic times.

Wellington council member John Tracy suggested an alternative plan should be put in place in case the referendum fails. He called it a “Plan B,” and thought a work session was needed.

Wellington council member John Brand said he thinks that it needs to be defined just what the hospital will be if a sales tax initiative fails to pass.

Wellington council member Paula Mortimer said she has been getting input from her constituents and felt SRMC’s public perception is not as rosy as what was indicated in a consultant survey released in January which gave the hospital high marks.

Members of the audience were then asked to participate. Businessman Chris Jesina, who along with his father Richard Jesina own Countryside Motors, said he was worried that the sales tax could reach upwards close to 9 percent.

“That could really hurt my business,” Jesina said. “People will go to Wichita to save $100.”

But he said he was glad he attended the meeting in that the sales tax proposal is not as outrageous as he originally thought.

Businesswoman Julie Russell, who owns Family Care Parlor, said she wanted to make sure the businesses are properly informed of the matter so they can adjust accordingly. She said she might have to lay off an employee or not make a community donation here or there. However, she said she was in support of keeping the hospital open.

Ward 4 council candidate Jan Korte said in 1994 when the sales tax was approved to consolidate the two hospitals an information meeting was provided to all the citizens of Wellington. She said that help tremendously getting the issue passed.

She said she feared right now there is a lot of misinformation that is floating in the public which is indicative based on comments on Sumner Newscow.

Wellington Area Chamber of Commerce Director Shelley Hansel echoed Korte’s sentiments and said some of her members are concerned about the sales tax increase and there needs to be an information meeting to explain what is going on.

The council as a whole agreed that a information meeting is needed.

Ward 4 council candidate Chris Bruster said he has spoke with about 400 constituents in Ward 4 and felt that anything more than a three-year sunset would be tough for voters to swallow.

The council unanimously voted for the referendum. A work session is set for Tuesday, Feb. 28 at 5:30 p.m. at the council chambers.

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