public safety sales tax option town hall meeting 7pm october 2 nd, 2012 2013 and beyond - tax years
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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.
Why a Public Safety Sales Tax option?
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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Why a Public Safety Sales Tax option?
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
Staff Efficiencies and Cost Saving Efforts Already in Place
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
Staff Efficiencies and Cost Saving Efforts Already in Place
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
Staff Efficiencies and Cost Saving Efforts Already in Place
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
Staff Efficiencies and Cost Saving Efforts Already in Place
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
Staff Efficiencies and Cost Saving Efforts Already in Place
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
Sales Tax - 8.925% TDD Area #1 -
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
Sales Tax - 8.925% TDD Area #1 -
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
Frequently Asked Questions
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.
Frequently Asked Questions
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
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