By Annie Wolfe/Pott County Times
For the first time in 15 years, Pottawatomie County’s valuation has dropped, commissioners learned at a
Monday budget work session.
Assistant County Administrator Heather Gladbach presented the commissioners with a budget that
includes a 9.9 percent decrease in the mill levy, making the mill levy 26.0 for 2025. The last time it was
that low was in 2016.
There was also an estimated decrease in valuation of $3,631,644, which is a 0.47 percent drop from last
year. Gladbach noted that this was “kind of unique”.
“The last time our county wide valuation decreased was in, like, 2010,” said Gladbach. “So, our current
valuation is $776 million and it’s estimated to go to $772.5 million.”
Due to the proposed decrease in the mill levy and the decrease in valuation, ad valorem taxes levied
would decrease by more than 10 percent. That percentage equates to $2,311,044.
Conversely, the proposed budget shows an increase of 7.15 percent in expenditures which equals
$2,914,167.
The glaring question is how can the mill levy decrease while expenditures increase?
“The reason we are able to do that,” Gladbach explained, “is two of our largest revenue sources other
than ad valorem taxes in the General Fund is Sales and Compensation Use Tax Income. Last year we
got $5.7 in receipts for Sales and Compensation Use Tax. And when you equate that to mills that’s 7.344
mills. And the biggest unanticipated increase in revenue budgeted from when we did the 2023 budget
was our interest income.”
The county earned $3.2 million in interest income last year, which equates to 4.164 mills. “The vast
change in interest rates over the last year, year and a half, was unanticipated,” said Gladbach.
Back in June of 2022 when the county created the 2023 budget, the average earning rate on investments
was 1.18 percent. Now, the average is 5.15 percent. “We just did not anticipate that large of a change in
investment rates,” said Gladbach.
“Part of that is how you place investments,” added County Administrator Chad Kinsley. “It’s not just
because interest rates went up. It’s how you managed the funds.”
Currently, the county sends out investment bids to the banks almost monthly, which secures more
competitive rates. Also, in 2023 the county opened a money market account and started getting bids for
treasury bills. “In this interest rate environment, those were higher rates than CDs at local banks,” said
Gladbach.
“There was a lot of work that was involved,” said Kinsley. “Heather is great.”
Commissioner Pat Weixelman requested the total dollar amount in investments. Kinsley estimated it was
probably around $90 million. “A lot of that is earmarked for specific purposes,” clarified Gladbach. “The
investments are not just county funds. It may be special assessments, and that kind of thing.”
“That’s a question we get asked occasionally…is why do you guys have $50 million ratholed … well, it’s
really not. It’s dedicated,” said Commissioner Greg Riat.
“Right,” answered Gladbach. “It may be special assessments that we are waiting to make the bond
payment on, and that type of thing. But yeah, I can get you that breakdown.”
After working through various proposed changes in specific departments and outside agency requests,
the commission agreed that the budget was ready to be presented for final approval at the next official
meeting.
