+ Town Hall Meeting 7pm October 22 nd, 2012 Public Safety Sales Tax Option

+ As you may know, in November of last year Wal- Mart stated their intention to move to Mission and build a Wal-Mart Supercenter at the Gateway Shopping Center. At that time the City began the process of determining how much of a loss this would mean to Roeland Park. We hired an independent financial advisor (Columbia Capital) who determined that loss could be nearly $700,000 annually when Wal-Mart closes their doors. We have been informed by the owners of the Roeland Park Shopping Center that once Wal- Mart closes their doors it will take approximately one year to prepare the building for the new tenant(s). That means there will be no sales tax for a period of approximately 12 months once Wal-Mart closes. During the past several years the city has been experiencing increased costs with decreasing revenues from sales and property taxes. We continue to work to find ways to decrease costs while continuing to provide quality services.

+ During the Budget process this past year the council discussed options on how to handle the potential loss of Wal-Mart. We came up with three options all of which include working to increase the tax base by selling land for development. The Governing Body desires to secure sales tax producing businesses to offset any options we have.

+ Cost Savings Before I get into the options I would like to take a minute to go over some of the things that our staff has done to help reduce our expenses and increase revenue. Refinanced City debt issue to a lower interest Rate Completed Comprehensive Plan In-House saving over $75,000 Limited Overtime to very few instances Volunteer Interns No increase in Employee Health Coverage – Employees paying more Taking on more construction activities with Public Works staff vs. hiring contractors Provide Leaf Services to neighboring cities Sold NW Roe and Johnson Drive Land Shared Services: Joint City Wide Trash Contract with Westwood and Fairway Purchased specialized equipment with Westwood and Fairway Legal Services– Shared costs w/Neighbor cities Providing building inspection Services for the City of Westwood Grants: Received grant funding for replacement of 1970s 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 Received Street Light Grant for New LED Lights Donations: High Diving Board Installation Placements of Art in R Park Our staff does a great job of finding ways to reduce the Citys expenses and providing quality service to the residents; and they do this with 3 less staff than our neighboring cities. What I mean is that we have 7 employees to their 10. We are and have been doing more with less for many years and we do it well.

+ Options Option 1 Reduce services by $700,000 Option 2 Public safety tax some service reductions Option 3 Public Safety Tax and Mill levy Increase No reduction of Services In Option 1 we would have to decrease services to cover $700,000 in lost revenue by reducing the police presence in the city. The leaf program may have to be eliminated. We would have to limit snow removal to main traffic ways and side streets will be completed as time allows. As well as a reduction of administrative staff. Option 2 is the choice the council is currently proposing. This option proposes a ¾ cent public safety sales tax that would generate an estimated $630,000. Since residents and non-residents pay for sales tax, it reduces the burden on residents. Nearly one-third of sales tax is paid for by individuals who live outside of Roeland Park but purchase items at Roeland Park stores. Non-resident consumers often benefit from services such as public safety while in Roeland Park. The Council will be researching ways to reduce expenses by the remaining $70,000 needed. 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. Option 3 This option proposes a ¾ cent public safety sales tax and a mill levy increase but no service reduction. While this is the ideal situation with regard to services; it is not the ideal situation for you the residents. On top of increasing sales tax the council would have to approve a 1.2 mill increase. This equals appx $50 more a year to a homeowner of a house valued at $140,000.

+ Budget 2014 without Public Safety Sales Tax And/or In 2014 the council is looking at declining sales tax, which equates to reduced services and or a mill levy increase. That is why we have proposed this sales tax.

+ The purpose of the proposed public safety tax is to provide funds to help pay for such items as vehicles, equipment, operations, supplies, training and personnel related directly to Public Safety. This new sales tax would remain in effect for ten years ending June 30, 2023 or the City Council could choose to terminate this sales tax at an earlier date.

+ VehiclesEquipment OperationsPersonnel

Proposed Budget Expenses 15 Full Time Officers 3 Part Time Officers 2 Clerks The 2013 Budget contains more than $1.5 Million in Public Safety Functions. As you can see the Police Department is one of the largest expenditure for the City, nearly a quarter of the budget for vehicles, equipment operations and personnel. This department employees 15 Full Time Officers, a Police Clerk and a Court Clerk as well as 3 Part-Time Officers. In 2011 the City reduced the Police Department by 1 officer, which equates to a 3% reduction in staff.

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+ Sales Tax Currently there are three difference sales taxes in Roeland Park. The base sales tax is percent. This is made up of the State Sales rate of 6.3%, Johnson County Sales Tax rate totaling 1.225% and the Citys sales tax rate of 1.25% We do have Two Transportation Development District and beginning January 1, 2013 a Community Improvement District. These districts have petitioned the city for an additional sales tax rate on goods sold.

+ Sales Tax Rate Comparison Sales Tax % TDD Area # % TDD Area # % Effective January 1, 2013 CID Area #1 – Sales Tax % TDD Area # % TDD Area # % CID Area # % Current Sales Tax Rate After July 1, 2013 (0.6% not included)

+ What if the state votes to keep the 0.6% sales tax? Legislature must pass a new 0.6% Sales Tax Pass by majority vote and the Governor has to sign in May You may have heard that the Governor is looking at reinstating the 0.6%. What does this mean? If the legislature presents a bill to raise the state sales tax by 0.6%, it will take a majority vote to pass. This will increase the sales tax by 0.6% or sixty cents on each dollar.

+ With Possible New State 0.6% Sales Tax Sales Tax % TDD Area # % TDD Area # % CID Area #1 – Sales Tax – 9.525% TDD Area #1 – % TDD Area # % CID Area #1 – % July 1, 2013 Sales Tax Rate Without Possible New State 0.6% July 1, 2013 Sales Tax Rate With Possible New State 0.6%

Tax 9.275% $9.28 Tax 9.425% $9.43 Tax % $10.03 Tax 9.775% $9.78 Tax 9.925% $9.93 Tax % $10.53 To put this into dollars, if you purchase $100 worth of merchandise at Lowes you will pay $9.28 in tax; If the public safety sales tax is approved then you will pay $9.43 and if the state approves the.6% tax then you will pay $ And if you purchase $100 worth of merchandise at Price Chopper or Walmart you will pay $9.78 in tax; If the public safety sales tax is approved then you will pay $9.93 and if the state approves the.6% tax then you will pay $10.53.

+ This was a difficult decision for the governing body to put before you the residents. However, we felt that it was the best way to determine the citizens wishes. The governing body has had some discussion on what to do if the total Sales Tax in Roeland Park goes above 10%. Will we be able to get new tenants at the Wal-Mart site if the rates are above 10%? Does the council pass an ordinance terminating the public safety tax so that we can keep it below 10%? These are questions we will be discussing at future meetings.

+ The Next Step 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

+ 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