Memorandum

City of Lawrence

City Manager’s Office

TO:	Dave Corliss, City Manager
FROM:	Cynthia Boecker, Assistant City Manager
CC:	Diane Stoddard, Assistant City Manager Casey Toomay, Budget Manager
DATE:	June 19, 2008
RE:	Proposed Infrastructure and Equipment Sales Tax

As requested by the City Commission, staff has developed a list of potential projects to be funded through a 3/10 sales tax for infrastructure and equipment. 

As the attached spreadsheet outlines, over the course of a 10-year period, a 3/10 sales tax is projected to generate $42.7 million in revenues. 

Based on continuing fire apparatus needs, an annual allocation of $500,000 is recommended for purchase of fire apparatus.  This funding can be supplemented with debt issuances or future general fund budgeting to enhance our ability to replace fire apparatus. 

Also previously discussed, the City Burroughs Creek Rail Trail project has been selected by the Kansas Department of Transportation for Transportation Enhancement (TE) funding for FY 2009/2010.  The attached recommends funding the City’s local match (approximately $350,000) including for this grant with sales tax proceeds in 2009. 

An annual allocation of $500,000 is recommended for residential street maintenance and sidewalks.  This program would provide mill and overlay projects on residential streets, as well as sidewalks, curbs, and gutters as needed.

Remaining funding is anticipated to provide new funds for street and storm water infrastructure which would enhance rather than supplant existing General Fund, Gas Tax or Storm Water funding for these infrastructure projects.  Seven major reconstruction projects are outlined on the summary spreadsheet.  Additional projects are included in a spreadsheet provided by the Public Works Department assessing street condition and cost to reconstruct.

Staff looks forward to the opportunity to discuss this information with the City Commission in order to receive direction regarding a potential sales tax election this fall.