Great Bend could consider a permanent 0.75-cent sales tax, potentially raising the total local tax rate to 9.45% if voters approve it in November. The discussion surfaced at a City Council work session after the Monday meeting, though no formal action was taken.

Instead, the discussion was about what a new, permanent sales tax would do and how it would save residents money on their property taxes and other fees.

The plan would earmark three-quarters of a cent: 0.25% to reduce property taxes (roughly seven to eight mills), and 0.50% for infrastructure such as sewer, storm sewer and water projects. A portion of the 0.5% could also support STAR (Sales Tax and Revenue) bond payments.

Mayor Alan Moeder said he sat down with three council members and City Administrator Logan Burns for a brainstorming session where they came up with the tax incentive plan. He framed the proposal as a way to alleviate rising water and sewer costs and to fund critical infrastructure without increasing property taxes. He noted the city’s role as a regional hub, arguing that surrounding counties and visitors should share in infrastructure costs through the sales tax.

City staff and council members discussed how to educate residents about the tax’s benefits and noted that the tax would be permanent with no sunset. If growth occurs, revenue would grow accordingly, potentially reducing or offsetting future property tax increases.

Councilman Jay Luerman suggested a sales tax increase was more affordable than other options.

“I think it’s actually way cheaper than you think," he said. A rough illustration from Luerman suggested a hypothetical family spending $10,000 annually would pay about $75 more per year under the new tax, while the annual cost of any required sewer treatment plant replacement could rise to roughly $300 per year for some households.

Councilwoman Shelly Arnberger returned to the idea that people from outside of Great Bend contribute sales tax dollars. “If travel and tourism increase, because we have events, that just helps this sales tax situation.”

“It’s fair to me,” Moeder agreed. “We go to Wichita, we go to Hutchinson, Salina – we’re helping pay for their communities, right?”

STAR Bond

If the STAR Bond project is approved, sales taxes collected from the improvements in the project zone (which includes the future hotel and related properties on 10th Street) will pay for the project. The project was originally said to include improvements to the SRCA Dragstrip with increased seating, livestock arena, banquet hall with four multi-purpose courts for sporting events, amphitheater, improvements to the existing rodeo grounds and an additional hangar and/or restaurant.

However, those funds won’t come in until the project is completed and making money.

“The STAR Bonds are a very delicate thing,” Moeder said. “It says that we can collect enough sales tax to pay the loan off, but we’ve got to protect the citizens so we don’t stick them for a million dollars in property tax.”

City Clerk/Finance Director Shawna Schafer said some City projects funded in the past have not been funded in two years. Items not funded in 2024 and 2025 included Sports Complex maintenance and other park maintenance, the Events Center parking lot and technology upgrades.

Coming up, the city needs to make improvements to the water system and the wastewater treatment plant, as discussed in other study sessions this year. While administrators actively seek grants, paying for these improvements could result in higher water and sewer fees. Moeder suggested a sales tax would cost less.

“We’re a hub of four counties that use Great Bend all the time. They need to help pay for (infrastructure). They’re using the roads, they’re using our sewer, they’re using the water, they’re using our parks. Let them help, start paying for a little bit,” he suggested.

“This would be a forever sales tax, with no sunset,” he said. If the city grows, the revenue will grow. “We may not ever have to raise property tax because our increase of sales tax revenue would help cover our increase of our city expenses. That’s what we’re hoping for. That’s the goal.”