Memorandum

City of Lawrence

City Attorney’s Office

 

TO:

City Commission

FROM:

Toni R. Wheeler, City Attorney

C:

Thomas M. Markus, City Manager

Bryan Kidney, Finance Director

DATE:

July 22, 2016

RE:

Charter Ordinance No. 16

 

At its regular meeting on July 19, 2016, the City Commission requested an opinion from the City Attorney’s Office regarding Charter Ordinance No. 16.  Specifically, the question is whether the Governing Body must levy a tax for the Lawrence Public Library (hereinafter “the Library”) in such sum as determined by the Library Board of Trustees.  The City Attorney’s Office concludes, after careful review of the City’s Charter Ordinances concerning the Library and relevant state statutes, that the Governing Body is required to levy a tax for equipping, operating, and maintaining the Library in such sum as the Library Board determines--up to the limits imposed by Charter Ordinance No. 16 (4.0 mills and 0.5 mills for social security taxes and KPERS contributions).  The Kansas Legislature, by legislative action, conferred upon public library boards the ability to impose a tax for the maintenance of a public library, with the governing bodies of cities serving as the conduit for such tax. 

 

In 1951, the Kansas Legislature amended then existing state statutes governing public libraries, providing new rules for establishing and maintaining public libraries.  The 1951 Act further provided, “Any library heretofore established and being maintained by a municipality shall be maintained in accordance with the provisions of this act….”  K.S.A. 12-1219.  The Library, in existence in 1951, is therefore subject to the Act.  K.S.A. 12-1220 states that the governing body (of a city) is “authorized to and shall annually levy a tax for the maintenance of such library in such sum as the library board shall determine within the limitations fixed by law….”  Although, the Library’s board has no authority to levy a tax on its own, the Kansas Legislature, by statute, gave library boards the authority to determine the mill levy for library maintenance within limitations imposed by law. 

 

In 1981, the City Commission adopted Charter Ordinance No. 16 establishing limitations on the tax levy for the maintenance of the Library, citing a desire “for fiscal accountability and restraint.”  Our office concludes that the limitations contained in Charter Ordinance No. 16 remain valid, until such time as the governing body amends, repeals, or replaces the charter ordinance.    

 

If it would be beneficial to the citizens and taxpayers of the City, going forward, the City could exempt itself from the state statutes referenced above by adopting a charter ordinance.  The options available to the City Commission include (1) allowing the Library Board to make a recommendation regarding the mill levy rate for Library maintenance, but leaving the final decision regarding the mill levy rate to the City Commission; (2) modifying the caps set forth in the existing charter ordinance; or (3) exempting itself from the library statutes entirely and establishing a new system for maintaining and operating the Library – including making the library a department of the City.

 

The Commission would also be within its authority if it elected, going forward, to include and account for in the Library’s allowable mill levy limit, the debt service costs associated with the general obligation bonds issued for the Library reconstruction project.  The 2017 estimated tax levy for the debt service is $1,225,213, which equates to an estimated mill rate of 1.355.  The debt service on the bonds lasts until September 2024.  This action could also be achieved by charter ordinance.  While an argument could be made that the City could include the debt service costs under the current state law and charter ordinance, the better course would be to clarify that in a new charter ordinance.[1]   

 

 

 

 

 


[1] A charter ordinance may be used to exempt a city from all or part of any non-uniform legislative enactment with certain exceptions.  Certain procedures must be followed by the Governing Body, including the ordinance must be approved by four of the five commissioners.  The charter ordinance is also subject to a 60-day waiting period mandated after the first publication to allow for a protest petition signed by ten percent (10%) of those who voted in the last regular city election.  The charter ordinance is effective after the expiration of the 60-day protest petition period.