By COLE REIF
Great Bend Post
Great Bend voters passed three separate sales tax increases following November’s General Election totaling a .45% increase to move the city’s sales tax to 8.7%. The largest portion of the increase was a .20% bump to improve the pension plan, or retirement plan, for first responders.
There are a couple of options to consider now that the extra funding will be there for police and fire department employees. The city could choose to beef up their existing retirement plan or go with the Kansas Police & Fire (KP&F) plan.
Mayor
Cody Schmidt said the city will discuss the matter at a work session Monday, Dec. 6 following the city council meeting.
"I want fire and police workers to speak their mind and share ideas," said Schmidt. "The council will get final say, but I'm always willing to listen. This will be a huge topic, but I would like to get this process started."
Both retirement plans allow fire and police staff to retire at age 55, but
KP&F offers disability benefits and provides a guaranteed pension amount
upon retirement.
Switching to the KP&F plan was projected to cost the city an extra $551,000 in the 2022 budget. Based on pay raises, the contribution would continue to increase each year, eventually estimated to cost the city $846,000 extra by 2033. Once participating in the KP&F plan, municipalities are not allowed to opt out.
Schmidt realizes there is a fear among a few
councilmembers that the projected revenue from the new sales tax will not cover the
expense of the retirement plan in the future.
"It goes back to the taxpayers...can we afford it 10 years from now?" said Schmidt. "I don't want to raise the mill levy over this. I don't want something pushed back that says 'remember when you made that mistake?' so we're trying to do what's best for everybody."
The city council meeting Monday begins at 6:30 p.m. inside City Hall with the work
session to follow.