7.1 Special Purpose Sales Tax Future Considerations Powerpoint PresentationIn
CITY OF SALINA
Special Purpose Sales
Tax Future
Considerations
January 4,, 2016
opic Overview
• Salina's current sales tax
• Summary of capital uses
• Future use considerations
• Sales tax of comparable cities
• Policy considerations
Salina's Current Sales Tax
Approved by voters on November 4, 2008 and Ordinance
No. 08-10475
Ballot language:
Shall the following be adopted?
Shall the City of Salina, Kansas be authorized to impose a .40 percent (.40%) city-
wide retailers' special purpose sales tax, which shall commence on April 2, 2009 or
as soon thereafter as permitted by law and shall terminate ten (10) years after its
commencement, the proceeds of which shall be used to pay the cost of capital
improvement pro ie� cts; major equipment; construction, operation and maintenance
of a
family aquatic
park in the
Kenwood Park area; debt service on
bonds
issued for
such
projects; property
tax
stabilization; and the continuation
of an
economic
development fund managed by the City of Salina?
�alina's Current Sales Tax
cont.)
Type: Special purpose
Rate: .4% (4/101"5)
Term: 10 years
Total revenue (est. thru X15): $28 million
Annual revenue (2015): $4.6 million
Summary of capital uses
commitments oto date)
Uses
Streets, bridges, sidewalks & trails'
Kenwood Cove
N. Ohio Overpass
Property tax stabilization
Vehicles, facilities & equipment2
Economic development3
Flood Control
MISC.4
TOTAL
Est. Investment
$ 7.86 million
'Includes wayfinding signs
z Inc. Fire Station No. 1 renovation
3 Inc. project incentives and contributions to SDI, Project Open & industry cluster study
4 Inc. drainage, parking, sprayground & software
$8.36
million
$1.67
million
$3.12
million
$3.25
million
$2.30
million
$ .21
million
$ .58
million
$27.35 million
i
Future use considerations (est.
�OCaj2itall
Needs Est. Annual Cost Range
Streets/bridges/trails'
$1.6 million
to
$3.6 million
Property tax stabilization
$500,000
to
$1 million
4
Park facility rehab/replacement
$400,000
to
$600,000
Economic development
$320,000
to
$500,000
Capital projects/facilities/equip.
$1 million
to
$2 million
Neighborhood redevelopment
$150,000
to
$300,000
Smoky Hill River renewal $1.35 million to $1.35 million
i
TOTAL Est. Cost of Needs $5.32m to $9.35m
1 Recommended focus of additional street funds is for neighborhood streets
Sales tax of comparable cities
(eff. July 1, 7-n15)
Junction City
9.75%
McPherson
9.00%
Leavenworth
9.50%
Leawood
8.85%
Pittsburg
9.25%
Overland Park
8.85%
Dodge City
9.15%
Hays
8.75%
Topeka
9.15%
Manhattan
8.75%
Kansas City
9.125%
Garden City
8.65%
Abilene
9.10%
Salina
8.40%
Hutchinson
9.10%
Derby
8.00%
Lenexa
9.10%
Wichita
7.50%
Lawrence
9.05%
Note: excludes special taxing districts
Source: KDoR website
r
Policy considerations
Is continuation of the current special sales tax
necessary?
Can the current sales tax rate meet current and
future capital improvement needs?
What are priority projects?
Should the City consider a higher increment?
.125% (1/8 cent)
.25% (1/4 cent)
.30% (3/10 cent)
.40% (4/10 cent)
.50% (1/2 cent)
_ $1.6
million
annually
_ $3.2
million
annually
_ $3.8
million
annually
_ $5.1
million
annually
_ $6.4
million
annually
rimary policy considerations
;ont.)
Term of future sales tax
When should the City consider asking voters to
consider a renewal?
Considerations: time before expiration, economy, fa I I
or spring election dates, general or special election, form
of ballot, competing ballot issues, state budget, etc.