CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date:  9/5/17
Staff Contact:	Casey Toomay, Assistant City Manager
Recommendations/Options/Action Requested:
Approve using the 2018-2022 Capital Improvement Plan as the spending plan for the 0.30% infrastructure and equipment sales tax.
Executive Summary:		In July, the City Commission authorized submitting three (3) sales tax questions on the ballot for the November 2017 General Election - a 0.2% sales tax for the operations of the City Public Transit System, a 0.3% sales tax for infrastructure and fire equipment, and a 0.05% sales tax for affordable housing projects and programs.  As part of the discussion, the Commission discussed a spending plan for the 0.3% sales tax.  The draft was modeled after the spending plan developed in 2008 as part of the educational campaign for the sales tax.  There were some questions about inclusion of the Federal Funds Exchange program funds on the plan.  Several commissioners indicated a desire to see the spending plan again. Staff is recommending that the City’s Capital Improvement Plan (CIP) be the spending plan for the 0.3% infrastructure and equipment sales tax.     Back in 2008, the City did not have a Capital Improvement Plan (CIP) or regular capital improvement planning process.  The spending plan was prepared as part of the educational campaign for the sales tax questions.  Now the City has a Capital Improvement Planning process and the City Commission adopts a Capital Improvement Plan each year.  The ballot language provides the parameters for permissible uses of the proceeds from the sales tax but the CIP provides needed flexibility.  For instance, the draft spending plan reviewed by the Commission in July relied on funds from the Federal Funds Exchange program to subsidize many of the projects over the ten-year plan.  The City received notice in August that this program is going to be reduced in the future.  The CIP process will allow adjustments to be made accordingly.  Similarly, if future collections exceed revenue projections, the CIP process will allow adjustments to accomplish more projects. The 2018-2022 CIP, which was adopted by the City Commission in August, assumed the 0.3% infrastructure and equipment sales tax would be renewed.  A report is attached, showing the projects and programs to be funded assuming the sales tax is approved by voters in years 2019 through 2022.  The CIP includes a number of annual programs that will be funded through the proposed 0.3% sales tax.  A different prioritization process will be used to determine the specific projects that will be completed in each year of the CIP.  These annual programs include: · Residential Contracted Street Maintenance Program.  The CIP includes $1.3M for this program annually beginning in 2019.  Staff will continue to prioritize the individual street projects annually using the PCI Index.     · Traffic Calming.  The CIP includes $300,000 for this program annually beginning in 2019.  Staff will use the existing list of traffic calming projects previously approved by the City Commission but not funded to date.    · Curb and Gutter Rehabilitation Program.  The CIP includes $400,000 in 2019 and 2020, then $450,000 in 2021 and $500,000 in 2022. · Sidewalk/Bike/Ped Improvements /ADA Ramps. The CIP includes $600,000 for this program in 2019, and increases the amount annually to $1M in 2022. Staff is actively working on prioritization of new sidewalk, bike and ADA improvements, not associated with street projects. · Contract Milling for In-house Pavement Rehabilitation.  The CIP includes $100,000 for the program annually from 2019 to 2021, and then increases the amount to $125,000 in 2022. · KLINK projects.  While the current CIP only includes funding for the KLINK project in 2020, it is anticipated funding from this sales tax would be used for this program, which is for improvements to roads connecting state highways, in years beyond 2022.   In addition, the 2018-2022 CIP includes spending proceeds from this sales tax on a number of specific projects or pieces of equipment, including: · Improvements to Kasold, from Clinton Parkway to the entrance to HyVee; · Improvements to 23^rd Street, from the Haskell Bridge to the eastern City limits.  Additional phases are anticipated for years beyond 2022 and funds from a turn-back agreement with KDOT will also be used; · Improvements to Wakarusa, from 18^th Street to Research Parkway; · Improvement to the 27^th Street Bridge; · Personal Protective Equipment for Fire Med · Replacement of Rescue 5 (including equipment) for Fire Med · Mobile Radios for Fire Med · Replacement of Investigation Unit 1 for Fire Med For the years beyond 2022, the ballot language will continue to provide the parameters for permissible uses of the sales tax proceeds.  The annual programs mentioned above will continue, although the annual funding amounts remain subject to change via the Capital Improvement Planning process.  Individual projects within these programs, and specific projects and pieces of fire med equipment, will be subject to prioritization through the annual CIP process, including approval by the City Commission.
Strategic Plan Critical Success Factor		Innovative Infrastructure and Asset Management.  Core Services Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		The fiscal impact to the City over the ten years of the 0.3% infrastructure and equipment sales tax is estimated to total $63,372,000.     The 2018-2022 Capital Improvement Plan assumed the 0.3% sales taxes would be renewed.  If the sales taxes are not renewed by the voters, it will be necessary to adjust the CIP as there will be insufficient funds to complete approximately $23.6M of programs and projects planned for 2019 through 2022.
Attachments:		2018-2022 Capital Improvement Plan for the Infrastructure and Equipment Sales Tax Ballot Language (see Question 2) July 11 Staff Memo June 13 Staff Memo

Reviewed By: (for CMO use only)

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