7.4 Continued Discussion on Future Capital Improvements & Sales TaxCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1111116 4:00 P.M.
AGENDA SECTION 7 ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM 4
CITY MANAGER'S OFFICE FINAL APP OVAL:
NO:
Page 1 BY: Jason A. Gage, City Manager B
ITEM:
Continued discussion of future capital improvements and sales tax.
BACKGROUND:
Last week, staff presented information related to the City's current .4% special use sales tax, a
summary of capital uses, future use considerations, the sales tax of comparable communities and
policy considerations for the governing body. This presentation is attached. The purpose of providing
this information is to help the governing determine an approach to funding future capital improvements
for the community, taking into consideration the necessary utilization of sales tax resources instead of
property tax resources.
Last week, the governing body asked staff to provide examples of various sales tax source levels as
compared to the estimated, future needs. This information, along with additional information for the
comparable cities and prior election turnout information from 1990 to 2009 is attached. A request for
updated election information has also been submitted to the Saline County Clerk. I have included a
summary of the turnout results back to 2000. According to the county clerk, the turnout for the recent
USD 305 school bond issue via special election, mail -in ballot was 50%. As mentioned last week, the
cost was approximately $40,000.
FISCAL NOTE:
Not applicable.
CONFORMANCE WITH STRATEGIC PLAN:
Not applicable.
RECOMMENDED CITY COMMISSION ACTION:
Staff recommends the city commission provide any further guidance desired with regard to future
capital improvement planning and use of the special purpose sales tax.
Attachments: Special Purpose Tax Future Considerations Slideshow Handout
Supplemental Tax Information
Saline County Elections (1990-2009)
CITY OF SAUNA
Special Purpose Sales
Tax Future
Considerations
]anuary 4, 2016
Topic Overview
• S'alina's current sales tax
• Summary of capital uses
• f=uture use considerations
• sales tax of comparable cities
• Policy considerations
1/7/2a16
1
Sauna`s Current Sales Tax
• Approved by voters on november 4, 2008 grad 0rdiriance
No. 08-10475
• Mlot language:
4off We f0f a" be adapt&V
Shat! the Gty of _cohna, Kansas be authorized to wWose a ap percent (.4M) OW -
w& retathms` spial purpose sales tax, which shelf cxammwce — APW Z 20M or
as soon ter as perrinitted by law and shall twmrnatae ten (10) yearn alter lls
cwwwncwheft the prweeds of whidt shall tae used to pay the coA of
OzolmWaffn ; rMoar edurnment: CortsUixtion, operatzon and MarntOnSOM
of a &M& Matic aff&in Df a Kenwood Falk area; 0 our bonds tswed far
such pnVecs, arpoerty tax staWLyhon and the cotWnuabon of an
rnwhVed by the Oty of 50kno 7
Salina's Current Sales Tax
(cont.)
• Type: Special purpose
• Rate: .4% (4/100
• Term : 10 yews
• Total revenue (est. thru `15): $28 million
• Annual revenue (2015): $4.6 million
1/7/2016
0
Summary of capital uses &
commitments (to date)
$1 mf hon to
.MM t:Ft. =n%FasMVt
• SU-eets, brpdges, sidewalks & traits'
$ 7_$b mdhon
• !Kenwood Come
$8.35 mEMon
• N. Ohio Overpass
$167 mtithmi
+ Property tax stabilization
$3.12 miilron
• vehicles, faca mes & equiprrrens
$3.25 malljon
w ELtMMIC oevelopmwt3
$230 rrmllwn
+ flood Control
$ .21 mrlticn
. HIS4
$ .58 million
TOTAL
$27.33 million
V,d - L
IiR H. 3k. p.r-port`
"Inc. W.I d and wn budum to SMS PmjAa bp— 4 R,du.Try dd-M Amy
• Inc Jr in M pmking, Wnwg nund &. ft—
Future use considerations (est.)
QWitall N -$
Streets bddges/traHsI
• Property tax stabilization
• Park facility rehab/replacement
• Economic development
• Capital projects/factlities/equip.
• Neighborhood redevelopment
• Smoky Hill River renewal
M. A»nUat C
$1.6 million to $3.6million
$500,000 to $1 million
$400,000 to $600,000
$320,000 to
$500,000
$1 mf hon to
$2 million
$150,000 to
$300,000
$1.35 million to
$1.35 million
TOTAL Est. Cost of Needs $5.32m to $9.35m
1 Recommended focus of additional street funds is for neiahborhood streets
1/7/2016
3
Sales tax of comparable cities
(eff. July 1, 20 15)
• Junction City
9.75%
•
Mc phermr7
9100%
• Leavenworth
9.50%
•
Leawood
a, 85 0
• Pittsburg
9.25%
•
Overland Park
8.85%
• Dodge City
9.15%
•
Hays
8.75°x,
• Topeka
9.15%
•
Manhattan
8.75%
• Kars City
9.125%
•
Garden City
8.65%
• Abilene
9.10%
•
Sa na
• Hutchinson
9,10Va
•
Derby
8.00%
• Lenexa
9.10%
+
Wichita
7.50%
• Lawrence
9.05%
Wow eKdm es spequl taxmg distruts
Soares: Kit website
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) - $1.6 million wally
.25% (1/4 dent) - $3.2 million annually
.30% (3/10 cent) - $3.8 million annually
.40% (4/10 cent) - $5.1 nwilion annually
.50% (1/2 cent) - $6.4 million annually
1/7/2015
4
Primary policy considerations
(cont.)
• Term of future sales tax
• When should the City consider asking voLer s to
consider a renewal?
Consideration. time before expiration, economy, fall
or spring election dates, genal or special election, form
of ballot, competing ballot issues, state budget, etc.
1/7/2016
5
SUPPLEMENTAL TAX INFORMATION
Comparable City Property Tax Rates - 2015
CitV
Total Tax Rate (milisl
CitV
City Rate Only
Hays
110.909
Overland Park
12.837
Overland Park
112.459
Leawood
24.492
Wichita
119.844
Hays
25.007
Leawood
125.896
Salina
27.080
Lenexa
126.173
Leavenworth
28.566
Lawrence
129.796
Lawrence
31.474
Leavenworth
131.766
Lenexa
31.765
Salina
133.852
Garden City
31.822
Derby
135.149
Wichita
32.291
Manhattan
135.502
Topeka
39.733
McPherson
140.027
Hutchinson
43.226
Garden City
146.248
Kansas City
43.473
Pittsburg
149.497
Manhattan
43.963
Abilene
149.958
Abilene
45.538
Junction City
153.518
Derby
47.149
Topeka
161.690
Junction City
47.666
Hutchinson
169.077
Pittsburg
48.491
Kansas City
173.412
Dodge City
50.883
Dodge City
185.290
McPherson
51.330
Source: Kansas Tax Rate & Fiscal Data Book - League of Kansas Municipalities
1
2017 Sales Tax Source/Uses Assumptions
Est. Revenue: $4.9 million (2017)
Revenue w/
Election Type
Future Use
2009
Increment Assumptions
Rounded
Considerations
Difference
63%
Primary
31%R/19%D
.125% =
$6,431,250
$6.4m
$5.32m to $9.35m
+$1.08m to -$2.95m
.25% =
$7,962,500
$8.Om
$5.32m to $9.35m
+$2.68m to -$1.35m
.30% -
$8,575,000
$8.6m
$5.32m to $9.35m
+$3.28m.to-$0.75m
.35% _
$9,187,500
$9.2m
$5.32m to $9.35m
+$3.88m to -$0.15m
.40% _
$9,800,000
$9.8m
$5.32m to $9.35m
+$4.48m to +$0.45m
.45% _
$10,412,500
$10.4m
$5.32m to $9:35m
+$5.08m to +$1.05m
.50% _
$11,025,000
$11.Om
$5.32m to $9.35m
+$5.68m to +$1.65m
Prior Saline County Election Turnout (1999 to 2009)
Year
Election Type
Voter Turnout
2009
City general
16%
2008
General
63%
Primary
31%R/19%D
2007
City general
18%
City primary
14%
2006
General
49%
Primary
27%R/19%D
2005
City general
36%
2004
General
63%
Primary
34%R/21%D
City special
22%
2003
City general
20%
City primary
14%
2002
General
54%
Primary
38%R/19%D
2
2001 City general 18%
City primary 9%
2000 General 63%
Primary 42%
Note: City/primary election occur in spring and general/primary elections occur in fall.
Source: Saline County Clerk's Office
Page 1
Saline County Elections 1990-2009
August 7, 1990 — Primary Election (U.S.: Senate, Representative District 1;
Statewide: Governor, State Representative (67 69 71), and State Officials;
Countywide: Commission District 1 and Precinct Committee People (Saline Co. Voters 48%)
September 25, 1990 — Special Election (City of Salina %2% Sales Tax for KSU merger with KTI)
Starts 1/1/91 and ends 12/31/92
Yes = 5,910 and No = 2,883 (Salina Voters 46%)
November 6, 1990 — General Election (U.S. Senate, Representative District 1;
Statewide: Governor, State Representative (67, 69, 71) and State Officials; Judicial;
Countywide: County Commission District 1) (Saline County Voters 72%)
*Constitutional Amendment (Education Article)
Yes = 7,662 and No = 8000
February 26, 1991— Primary City/USD Election — Salina City Commission and USD 306
(Salina Voters = 27%)
April 2, 1991— General City/USD Election - Salina City Commission; 3rd Class City Council;
and Board of Education (Salina Voters = 40%)
July 9, 1991— Special Mail Ballot Election (Saline County Charter Resolution 7 to exempt
Board of Commissioners from amendments relating to aggregate funds taxing levy limits)
Yes = 2,093 and No 11,857 (Saline County Voters = 69%)
April 7, 1992 — Presidential Preference — U.S. Presidential
August 4, 1992 — Primary Election (U.S.: Senate, Representative District 1;
Statewide: Senate District 24, State Representative (67 69 71), State Board of Education 6;
Countywide: Commission District (2 and 3), Precinct Committee People, Township Clerk,
Trustee, Treasurer and Local County Officials) (Saline County Voters = 52%)
*City of Salina 1/2% Sales Tax - Beginning 1/1/1993 (Yes = 6,952 and No = 3,631)
November 3, 1992 — General Election (U.S.: Presidential, Senate, Representative District 1;
Statewide: Senate 24, State Representative (67, 69, 71), State Board of Education 6; Judicial;
Countywide: Commission District (2 and 3), and Local County Officials)
(Saline County Voters = 87%)
*Saline County 1/2% Sales Tax (jail addition and renovation) Starts 1/1/93 and ends 5/95
Yes =13,101 and No = 9,037
`Constitutional Amendment 1 (Classification of Property) Yes = 9,198 and No = 11,299
*Constitutional Amendment 2 (Victims Rights) Yes = 18,856 and No = 2,769
March 2, 1993 — Primary City/USD Election -- Salina City Commission, Gypsum City Council,
and USD 307 (Salina Voters = 17%)
April 6, 1993 — General City/USD Election - Salina City Commission; 3rd Class City Council;
and Board of Education
Page 2
Saline County Elections 1990-1999 Continued
July 20, 1993 — Special Election - USD 305 Local Option Budget Question
Yes = 3,412 and No = 4,467
August 3, 1993 Special Mail Ballot Election - Consolidate Spring Creek Township with Ohio
Township (Yes = 13 and No = 105)
February 15, 1994 — Special Election - USD 305 Local Option Budget
Yes = 5,492 and No = 5,763 (USD 305 Voters = 481/6)
August 2, 1994 — Primary Election (U.S.: Representative District 1;
Statewide: Governor, State Representative (67 69 71) and State Officials;
Countywide: Commission District 1, Precinct Committee People and Township Clerk)
August 2, 1994 — Recall Election - City of New Cambria recall Mayor Sam Saliba:
Yes = 34 and No = 48; Council Member Sharon Cook: Yes = 33 and No = 49;
Council Member Toni Saliba: Yes = 33 and No = 49
November 8, 1994 — General Election (U.S. Representative District 1;
Statewide: Governor, State Representative (67, 69, 71) and State Officials, Judicial;
Countywide: Commission District 1 and Township Clerk) (Saline County Voters = 65%)
*Liquor without Food Sales Question (Yes = 8,495 and No = 8,326)
February 28, 1995 — Primary City/USD Election — Salina City Commission, Gypsum City
Council, USD 305 and USD 307 (Salina/USD 305 Voters = 27%)
April 4, 1995 — General City/USD Election - Salina City Commission; 3`d Class City Council;
and Board of Education (Salina Voters = 43%)
*Constitutional Amendment (Legalize Instant Bingo) Yes 5,334 and No = 3,703
July 18, 1995 — Special Election - USD 307 shall close Brookville Elementary School building
no later than January 15, 1996 (Yes = 191 and No = 123) (USD 307 Voters = 33%)
August 6, 1996 — Primary Election (U.S.: Senate, Representative District 1;
Statewide: Senate District 24, State Representative (67 69 71), State Board of Education 6;
Countywide: Commission District (2 and 3), Precinct Committee People, Township Trustee,
Treasurer and Local Officials) (Republican Voters = 58% and Democratic Voters = 44%)
November 5, 1996 — General Election (U.S.: Presidential, Senate, Representative District 1;
Statewide: Senate 24, State Representative (67, 69, 71), State Board of Education 6; Judicial;
Countywide: Commission District (2 and 3), and Local County Officials)
(Saline County Voters = 72%)
February 25, 1997 — Primary City/USD Election - Salina City Commission, Assaria City
Council, USD 306, and USD 307 (Salina Voters = 18%)
April 1, 1997 — General City/USD Election - Salina City Commission; 3`d Class City Council;
and Board of Education (Salina City Voters = 26%)
Page 3
Saline County Elections 1990-1999 Continued
April 7, 1998 -- Special Election — USD 307 (Ell -Saline) $1,660,000.00 School Bond Issue
General Obligation Bonds (Yes = 340 and No = 343)
August 4, 1998 - Primary Election (U.S.: Senate, Representative District 1;
Statewide: Governor, State Representative (67 69 71), and State Officials;
Countywide: Commission District 1, Precinct Committee People, and Township Clerk)
November 3, 1998 - General Election (U.S.: Senate, Representative District 1;
Statewide: Governor, State Representative (67, 69, 71) and State Officials, Judicial;
Countywide: County Commission District 1) (Saline County Voters = 55%)
*USD 305 1/4% Sales Tax (School Technology) Starts 111199 and ends 6/30104
Yes = 9,389 and No = 5,823
*USD 305 $98,800,000 School Bond issue General Obligation Bonds
Yes = 8,351 and No = 7,595
*USD 307 (Ell -Saline) Not to exceed $1,680,000.00 School Bond Issue General Obligation
Bonds (Yes = 411 and No = 321)
March 2, 1999 - Primary City/USD Election -Assaria City Council and USD 307
April 6, 1999 - General City/USD Election - Salina City Commission; 3rd Class City Council;
and Board of Education (Saline County = 22%)
*Constitutional Amendment (Tax exemption for oil and gas property)
Yes = 2,259 and No = 3,255
November 9, 1999 — Special Election - City of Brookville (Sewer System)
Yes =109 and No = 9 (Brookville City Voters = 73%)
2000-2009
August 1, 2000 - Primary Election (U.S.: Representative District 1;
Statewide: Senate District 24, State Representative (67 69 71), State Board of Education 6
Countywide: County Commission District (2 and 3), Precinct Committee People, Township
Trustee, Treasurer, and Local County Officials) (Republican Voters = 50%;
Democratic Voters = 35%; and Unaffiliated Voters = 4%) .
* 114 % Sales Tax for City of Salina (Aquatic Park) Beginning 10/1/2000 and end 9/30/2003
Yes = 4,350 and No = 5,501 (Salina Voters = 42%)
November 7, 2000 — General Election (U.S.: Presidential, Representative District 1;
Statewide: Senate District 24, State Representative (67, 69, 71), Board of Education 6; Judicial;
Countywide: County Commission (2 and 3), and Local County Officials)
(Saline County Voters = 63%)
*Constitutional Amendment #1 — Kansas to be a stockholder in banking institute (KPERS)
Yes = 13,099 and No = 5,752
*Constitutional Amendment #2 — Classification of aircraft and watercraft for taxation
Yes = 9,704 and No = 8.688
February 27, 2001 — Primary City/USD Election - Salina City Commission and USD 305
(Salina/USD 305 Voters = 9%)
Page 4
Saline Coun Elections 2000-2009 Continued
April 3, 2001— General CityIUSD Election - Salina City Commission; 3`d Class City Council;
and Board of Education (Saline County Voters = 18%)
August 6, 2002 — Primary Election (U.S.: Senate, Representative District 1;
Statewide: Governor, State Representative (69 71 108) and State Officials;
Countywide: County Commission District 1 and Precinct Committee People)
(Republican Voters = 38% and Democratic Voters = 19%)
November 5, 2002 — General Election (U.S.: Senate, Representative District 1;
Statewide: Governor, State Representative (69 71 108), and State Officials;
Countywide: County Commissioner District 1) (Saline County Voters = 54%)
*City of Salina Repeal of Restaurant Smoking Ban
Yes = 6,246 and No = 8,968
February 25, 2003 — Primary City/USD Election - Salina City Commission and USD 306
(Salina/USD 306 Voters =14%)
April 1, 2003 — General City/USD Election - Salina City Commission; 3`d Class City Council;
and Board of Education (Saline County Voters = 20%)
March 16, 2004 — Special Election - City of Salina extension of USD 305 1/4 % Sales Tax
(School Technology) Starts 6/30/2004 and ends 6/30/2010 (Salina Voters = 22%)
This sales tax extension funds Salina Capital Improvement and Economic Development Projects.
Yes = 4,849 and No = 1,680
August 3, 2004 — Primary Election (U.S.: Senate, Representative District 1;
Statewide: Senate District 24, Representatives (69, 71, 108), State Board of Education 6;
Countywide: Commission District (2 and 3), Precinct Committee People, and Township Trustee,
Treasurer, and Local Elected Officials)
(Republican Voters = 34% and Democratic Voters = 21%)
November 2, 2004 — General Election (U.S.: Presidential, Senate, Representative District 1;
Statewide: Senate District 24, Representatives (69, 71, 108), Board of Education 6; Judicial;
Countywide: County Commission District (2 and 3), and Local County Officials)
(Saline County Voters = 63%)
March 1, 2005 — Primary City/USD Election - Salina City Commission and City of Gypsum
Mayor (Salina Voters = 14% and Gypsum City Voters = 46%)
April 5, 2005 — General City/USD Election - Salina City Commission; 3`d Class City Council;
Board of Education; and Central Kansas Extension District #3 (Saline County Voters = 36%)
*Kansas Constitutional Amendment Question (defining marriage) (Yes = 7,191 and No = 5,559)
August 1, 2006 — Primary Election (U.S. Representative District 1;
Statewide: Governor; State Representative (69 71 108), and State Officials;
Countywide: County Commission District 1, Precinct Committee People, Township Clerk and
Local Officials) (Republican Voters = 27% and Democratic Voters = 19%)
Page 5
Saline 'C'oun& Elections 2000-2009 Continued
November 7, 2006 — General Election (U.S.: Representative District 1; Statewide: Governor,
State Representative (69 71 108), and state officials; Judicial; Countywide: County Commission
District 1 and Township Clerk (Saline County Voters = 49%)
* Saline County Sales Tax for 114% to fund a new Expo Center — Starts 4/1/2007 and ends
5 years from the date of first collection
Yes = 5,079 and No = 11,964
February 27, 2007 -- Primary City Election - Salina City Commission (Salina Voters =14%)
April 3, 2007 — General City/USD Election - Salina City Commission; 3`d Class City Council;
Board of Education; and Central Kansas Extension District #3 (Saline County Voters = 18%)
August 5, 2008 — Primary Election (U.S. Senate, Representative District 1;
Statewide: Senate District 24, Representative (69, 71, 108), Board of Education 6;
Countywide: Commission District (2 and 3), Precinct Committee People, Township Trustee,
Treasurer and Local County Officials)
(Republican Voters = 31% and Democratic Voters = 19%)
November 4, 2008 — General Election (U.S.: Presidential, Senate, Representative District 1;
Statewide: Senate District 24, Representative (69, 71, 108), Board of Education 6; Judicial;
Countywide: County Commission District (2 and 3), and Local County Officials)
(Saline County Voters = 63%)
*City of Salina Sales Tax Question for .40% (Aquatic Park and City Improvements) Starts
4/1/2009 for 10 years (final sales tax = 7.20%)
Yes =10,751 and No = 7,608 (Salina Voters = 60%)
April 7, 2009 — General City/USD Election - Salina City Commission; 3`d City Council; Board of
Education 6; Central Kansas Extension District 43 (Saline County Voters = 16%)
*USD 307 (Ell -Saline) $6,815,000 for Elementary School and Middle/High School
Improvements (Yes = 230 and No = 196) Percent Voted (Yes = 54% and No = 46%)
*USD 307 (Ell -Saline) $385,000 for new district office (Yes = 189 and No = 237)
Percent Voted (Yes 44% and No = 56%)
Blue = General Election
Red = Primary Election
Black = Special Election
*Indicates Ballot Question