Sedgwick County staff warn House Bill 2396 could limit local bond authority, urge technical fixes

County staff told the Sedgwick County Commission on March 7 that House Bill 2396, a property‑tax lid proposal under consideration in the Legislature, contains drafting problems that could prevent counties from issuing debt backed by the 'full faith and credit' of the jurisdiction unless that debt had been approved by voters.

"It talks about bonds that were approved by the vote of the electors at an election," said Lindsey, summarizing bond counsel’s concern that the draft would restrict use of full faith and credit to election‑approved debt. Staff noted that the provision, as written, could prevent routine general obligation bond issuances that the county currently backs with property tax revenues.

Bond counsel flagged a statutory reference and recommended language tied to KSA 10‑301 that would preserve the county’s authority to issue debt under existing law. Staff also recommended changing references to "county clerks" to "election officials" where petitions or election administration are at issue, to reflect the state’s varied election structures.

Commissioners discussed whether to become proponents of the bill if those technical fixes were adopted and debated related transparency concerns. One commissioner said the bill could incentivize conservative budgeting but must not unintentionally undercut municipal credit or ordinary financing tools.

Staff offered to coordinate with legislative contacts and suggested submitting amendment language on the Senate floor or on the Senate side if necessary. The commission did not take a formal vote at the agenda review meeting but directed staff to pursue suggested edits and to coordinate next steps with legislative counsel.