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?