Post on 11-Apr-2017
transcript
Salina Sales Tax Initiative2016 to 2036
An investment in neighborhood streets, quality jobs and
community
About the Election
Special, mail in ballot election From April 20th through May 10th Ballot Question
Asks the voters to replace the current 4/10ths (.40%) sales tax with a 3/4ths (.75%) sales tax for a timeframe of 20 years and specified uses
Changes the total sales tax from 8.4% to 8.75%
Sales Tax Use Priorities
1 Neighborhood Streets
2 Property Tax Stabilization
3 Preserving and Enhancing Parks
4 Attracting “Quality” Jobs
47%
9%
9%
31% 4%
Funding Allocation*
Neigh. Streets
Prop. Tax Stab.
Parks, etc.
Smoky Hill River
Quality Jobs
*Estimated
Sales Tax Use Priorities1 Neighborhood Streets
Top priority!!
An additional $2+ million per year (from $1.6 million to at least $3.6 million)
Also bridges, sidewalks & trails
Street priorities determined by condition, use and neighborhood feedback
Sales Tax Use Priorities (cont).2 Property Tax Stabilization
Historic mill levy between 24 and 27 mills1
Use of sales tax for capital equipment needs can keep the rate stable
The positive impact is estimated to be between $500,000 to $1 million per year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016152025303540
Property Tax Mill Rate2005 - 2016
Rate
1Source: City of Salina Finance Department
Sales Tax Priority Uses (cont.)Emphasizing Operational Efficiencies
Continuous Process Improvement (CPI) since late 2012
Nationally recognized and only city in Kansas to apply Lean Six Sigma tools
Results: Savings of $1.4 million to date for operations1
Reduced full-time staffing from 511 (2008) to 473 (2016) through efficiencies, NOT layoffs
CPI cannot meet both operational needs AND our community’s capital needs
1Source: City of Salina Continuous Process Improvement Program Data
Sales Tax Priority Uses (cont.)3 Preserving & Enhancing Parks
Playground upgrades, more trails and bicycle connectivity
Major facility maintenance (e.g., lights, shelters, ball fields, etc.)
Slimmed down approach to Smoky Hill River Renewal – repurpose Kenwood Cove annual increment and focus “between the banks”
Est. investment (excl. SHR): $300k to $500k per year
Sales Tax Priority Uses (cont.)4 Attracting “Quality” Jobs
Compliment new economic development organization
“Quality” jobs – higher wages & better benefits
Assist Salina businesses and strategically target recruitment efforts
Investment emphasis - things that stay in Salina (e.g., land, buildings, infrastructure & training)
Est. investment: $450k to $700k per year
The Dollar Impact
Consumption based Only 4.2% higher than
today’s total sales tax Est. to generate $4.3
million1 in additional revenue for streets and other needs.
Nearly 1/3rd of revenue will come from outside Saline County2
35 ¢per
$100 spent1Source: City of Salina Finance Department2Source: A study of Retail Trade In Cities Across Kansas – 2015, Kansas Dept. of Revenue Office of Policy and Research
How We Compare To Competing Communities - 2015
Sales TaxJunction City 9.75%Dodge City 9.15%Topeka 9.15%Abilene 9.10%Hutchinson 9.10%McPherson 9.00%Hays 8.75%Manhattan 8.75%Salina (prop.) 8.75%Garden City 8.65%Salina (curr.) 8.40%Wichita 7.40%
Property Tax (mills)McPherson 51.330Dodge City 50.883Junction City 47.666Abilene 45.538Manhattan 43.963Hutchinson 43.226Topeka 39.733Wichita 32.291Garden City 31.822Salina 27.080Hays 25.007
Source: Kansas Tax Rate & Fiscal Data Book – League of Kansas Municipalities
Accountability Ballot language
legally limits uses Not for salary or
general operations Citizen – based
priorities 5-year Capital
Improvement Program
Fulfillment of prior commitments - 2008 sales tax
2008 Sales Tax UsesNeed Amount
(millions)
Streets & rel. $10.50Kenwood Cove $8.80Property Tax Stabil. $4.90Job Growth $3.50Maintenance V/E $3.10Flood Protection $ .95Facility Impr./Maint. $ .88Human Services $ .24Other Projects $1.30 TOTAL
$34.2 millionSource: City of Salina Finance Department
Accountability
CommunityCapital
Projects
2011 – 2015(2016 planned)
The Sales Tax Bottom Line It addresses neighborhood streets, parks, other
major capital needs & quality job growth, while preserving a stable property tax rate
The proposed sales tax rate is still in line with competing communities
The sales tax leverages the biggest community impact with the least personal impact
The sales tax will help ensure Salina’s regional viability to retain and grow our resident base, businesses and visitors for the next 20 years
QUESTIONS?