public safety sales tax option town hall meeting 7pm october 2 nd, 2012 2013 and beyond - tax years

PUBLIC SAFETY SALES TAX OPTION

TOWN HALL MEETING7PM OCTOBER 2ND, 2012

2013 and beyond - Tax Years

Why a Public Safety Sales Tax option?

The City Council decided to present this option to voters because it offsets the burden of funding services such as public safety by utilizing a sales tax paid by residents and non-residents alike.

While a city property tax is carried by city residents alone, a sales tax spreads the burden over a larger population including non-resident consumers who often benefit from services such as public safety while in Roeland Park.


In November, 2011, Wal-Mart stated

their intention to close its’ Roeland Park store and open a larger store in a neighboring community.

City officials estimate sales tax to decline due to Wal-Mart’s departure by approximately$700,000 annually in 2014.

A ¾ cent sales tax would generate an estimated $630,000 and would help reduce the declining sales tax revenue following the departure of Wal-Mart

This sales tax will ensure public safety functions will continue without significant disruption

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The City has experienced a decline in property tax revenues over the past 4 years

With this decline the city has been reducing costs while trying to maintain the same level of service

Roeland Park has a pull factor of 1.436. This means nearly a one-third of sales tax is paid for by individuals who live outside of Roeland Park but purchase items at Roeland Park stores

Background Information

Sales Tax vs. Property Tax Mill Levy Increase

The difference between a sales tax and a property tax mill levy increase is, voters have a direct voice in whether the tax is created.

Sales tax is a tax on consumption. Almost one-third of the sales tax revenue in Roeland Park is generated by consumers who live outside the city.

Use of Sales Tax

Total Sales Tax loss

($700,000)11.563 Mills

General Fund Loss($210,000)3.469 Mills

Special Sales Loss(Debt Service

TransfersFrom 27A and 27D)

($420,000)6.938 Mills

Community Center Loss(27C)

($70,000)1.156

Translates to average household

Home Value Total TaxIncrease (Annual)

Increase (Month)

Increase (Day)

$125,000 537.67 166.22 13.85 0.46 $130,000 559.17 172.87 14.41 0.47 $140,000 602.19 186.16 15.51 0.51 $145,000 623.70 192.81 16.07 0.53

Options for How To Handle Loss Of Wal-Mart

Loss $700,000

Option1• Reduce

services by $700,000

Option2• Replace lost

sales tax with combination of sales tax and service reductions

Option 3• Replaced

lost sales tax with sales tax and/or property tax revenue with no service reductionSale of Property to Tax Producing

Businesses

2013 Proposed Budget Expenses

GENERAL OPERATING

15%

POLICE20% COURT

2%

CODE EN-FORCEMENT

2%AQUATIC CENTER

7%

ADMINIS-TRATION

4%

STREET/PARKS

8%TRANSFERS FOR DEBT SERVICE

7%

RESERVES21%

EMPLOYEE BENEFITS

13%

CITY COUNCIL

1%

Public Safety Expenses Include: Vehicles: the Police Department has a total

of eight vehicles. Officers need to have reliable vehicles to carry out their duties; due to the high number of operational hours two vehicles need to be replaced each year

Equipment: radios; computers; light bar; sirens; and police gear

Operations: supplies, training and personnel (over half of the city’s employees perform Public Safety related functions)

What the City has done to date to reduce expenses or increase Revenues

Staff Efficiencies and Cost Saving Efforts Already in Place

Administration Refinanced City debt

issue to a lower interest Rate

Reduced paper copy of newsletter to 4 times a year from 6

Removed from the budget expenses: Shawnee Indian Mission Foundation, Art in R Park

Completed Comprehensive Plan

In-House (saved over $75,000)

No additional Debt Service added for 2012 Roe Boulevard Street/Curb/Sidewalk Program

Sold NW Roe and Johnson Drive Land

Eliminated most Human Resource Attorney fees


Shared Services: Joint City Wide Trash Contract with

Westwood and FairwayPurchased specialized equipment with

Fairway and WestwoodLegal Services– Shared costs w/Neighbor

citiesProviding building inspection Services for

the City of Westwood In-house - Building maintenance/repairs Website updated in house


Grants:Received grant funding for

replacement of 1970’s Boiler with new Energy Efficient Boilers

Received grant funding in conjunction with the City of Mission, Overland Park and Johnson County Transit for bus stop at Roe/Johnson intersection and sidewalk improvements

Donations: High Diving Board Installation, Placements of Art in R Park


Limited Overtime to very few instances

Travel – Carpool/Hotel Sharing Volunteer Interns No increase in Employee Health

Coverage – Employees paying more Changed to a Pooled Property

Casualty company to reduce cost by nearly half


Police Reduced one officer position Reducing overtime Uniform purchases restricted by need of

replacement Reducing training expenses by utilizing free

or reduced cost opportunities Reducing Travel Reduced equipment purchases


Public Works Received Street Light Grant for New LED Lights Reduced Summer Help Limited Overtime to very few instances and snow removal In-house -Building maintenance/repairs, Vehicle/Equipment

maintenance, Vehicle/Equipment repairs Buy Local-reduced travel costs Reduced Idling of trucks Selling scrap metal Sale of used tires instead of paying disposal fees Taking on more construction activities with Public Works staff vs.

hiring contractors Planting of native plants to reduce amount of watering and cost to

replace Limited purchase of annual plants to only flower pots vs. planting

areas Provide Leaf Services to neighboring cities

City Services Provided Compared to Staff levels

Average of other Johnson County CitiesStaff size of 6.3 FTE per 1,000 residents =

Roeland Park Staff Size approximately 70.68% of County Average

For every 10 staff members other Johnson County cities employ, Roeland Park provides many of the same services and in some cases more services

with just 7 staff members

General AdministrationAccountingBudgetingFacilities managementMoney managementPurchasing Legal ServicesAdvise governing bodyDefend against lawsuitsMunicipal attorneyMunicipal courtProsecute ordinance violations Municipal ClerkAlcohol beverage licensingDog and cat licensingElection administrationMeeting minutesOpen meetings law complianceProperty tax billing and collectionPublic records custodianPublication of legal noticesPlanning and Development

Building inspection and permittingComprehensive planningEconomic development coordinationZoning administrationReactive Code Enforcement Public SafetyAnimal controlCrime prevention, investigation and patrolPoliceSchool liaison officer Solid Waste*Refuse collection and disposalRecyclingYard waste collection and disposal Public Works/Parks & RecStorm Water system maintenancePark maintenance and

operationEngineering servicesPublic Works/Parks & Rec (cont.)Sidewalk construction and maintenanceSnow removalStreet sweepingStreet paintingStreet maintenance and repairTree planting, trimming and removal on public land Community Services**Community CenterAquatic CenterRecreation Dome

*This service also paid through Property Tax Assessment** This service also paid for through City and County Sales Taxes

Additionally Roeland Park has Pro-active Code enforcement and the Leaf Pick Up Program

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BUDGET 2014 WITHOUTPUBLIC SAFETY SALES TAX

Service

Cuts

Mill Levy

Sales

Tax And/or

Sample Service Reductions

How large of reduction of services would $700,000 be equal to?

Some examples of the level of service reductions necessary could include: reduced police presence, elimination of the leaf program, limited snow removal to main traffic ways, and reduced administrative staff.

Sales Tax

State72%

JoCo14%

City Of Roe-land Park

14%

tax rate

Sales Tax Rate Comparison

Sales Tax - 8.775% TDD Area #1 -

9.775% TDD Area #2 -

9.275%

Effective January 1, 2013

CID Area #1 – 9.775


9.925% TDD Area #2 -

9.425%

CID Area #1 - 9.925%

Current Sales Tax Rate After July 1, 2013(0.6% not included)

With Possible New State 0.6% Sales Tax


9.925% TDD Area #2 -

9.425%

CID Area #1 – 9.925

Sales Tax – 9.525% TDD Area #1 –

10.525% TDD Area #2 -

10.025%

CID Area #1 – 10.525%

July 1, 2013 Sales Tax Rate

Without Possible New State 0.6%

July 1, 2013 Sales Tax Rate

With Possible New State 0.6%

Frequently Asked Questions

How much will this proposal increase a $100 purchase?

Shop RP

Current 2012

Roeland Park, KS 66205

Purchases 100.00

SUBTOTAL $100.00

KS Sales Tax 9.275% $9.28

TOTAL $109.28

Shop RP

July 1, 2013

Roeland Park, KS 66205

Purchases 100.00

SUBTOTAL $100.00

KS Sales Tax 9.425% $9.43

TOTAL $109.43

Difference on a $100 purchase-15 cents.

Temporary State Sales Tax

What if the state votes to keep the 0.6% sales tax? Serious discussion will need to

be held Process:

Legislature would have to present a bill to raise the state sales tax by 0.6%

Pass by majority vote and the Governor has to sign in May

The Next Step

Proposed Sales Tax: On November 6, you will have the

opportunity to cast your vote on the creation of a 3/4-cent sales tax to fund the Police Department and other public safety expenses

Timeline

Vote on Proposed Sales Tax Oct. 17 – Advance voting by mail begins Oct. 22 – Advance voting in person begins Nov. 5 – Advance voting in person closes

(12 noon) Nov. 6 – Election Day

If approved, Term of the Sales Tax Begin – July 1, 2013 End - June 30, 2023 (10 years)

Or at an earlier date if the council elects to terminate


What Does a “YES” vote mean?

Voting yes means there will be a new source of money to help offset the burden of funding services such as public safety by utilizing sales tax rather than property tax. The proposed sales tax will largely replace an expiring sales tax.


What Does a “NO” vote mean?

A no vote means you are not in favor of a sales tax increase. Voting no means there will not be a new source of sales tax money to help offset the loss of revenue from the anticipated departure of Wal-Mart in 2014. The City will be forced to consider increasing property taxes ($700,000 equals to 11.6 mills or a 55% increase) or drastically reducing City services.

Ballot Language

“SHALL THE CITY OF ROELAND PARK, KANSAS, BE AUTHORIZED TO LEVY AN ADDITIONAL THREE-QUARTER PERCENT (.75%) GENERAL PURPOSE CITY RETAILERS' SALES TAX, WITHIN THE CITY OF ROELAND PARK, KANSAS, TO BE FIRST USED FOR PUBLIC SAFETY EXPENSES, INCLUDING BUT NOT LIMITED TO POLICE VEHICLES, SALARIES AND EQUIPMENT, AND IF NOT NEEDED FOR SUCH PURPOSE THEN FOR ANY OTHER PURPOSE TO WHICH GENERAL FUND REVENUES MAY BE PUT, WITH SUCH ADDITIONAL TAX TO TAKE EFFECT ON JULY 1, 2013, AND TO END ON JUNE 30, 2023?”

“

How does Roeland Park compare to Johnson County Average CHECK NUMBERS

How Roeland Park Compares in Spending Per Person

City Name2010 Census Population Mil Rate 2012

Total City General Fund

General Fund Per Capita

Roeland Park 6,731 23.225 5,046,452 $750.00

Average 24.29 $885.21

Out of Pocket Property Tax Burden

City Name2010 Census Population Mil Rate 2012

Median Household

Income

Average Residential

Value

City Mil Tax on Average City

Home

Roeland Park 6,731 23.225 $57,950 $138,663 $370.35

Average 24.29 $79,913 $246,552 $656.55

Comparison of Staff Size per capita

City Name2010 Census Population Total number of FTE

Staff Per Capita Ratio per 1,000 residents

Roeland Park 6,731 30 4.45

Average 6.3

public safety sales tax option town hall meeting 7pm october 2 nd, 2012 2013 and beyond - tax years

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