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Legislation #: 120458 Introduction Date: 5/10/2012
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER CIRCO
Title: Calling an election on August 7, 2012, for the purpose of asking voters to prohibit renewal of the expired motor vehicle fee and to forbid billing and collection of a real estate tax for park and boulevard maintenance and trafficway maintenance, and to forbid billing and collection of the boulevards and parkways front foot assessment and to collect in their place a one-half cent sales tax for parks and to establish a dedicated street maintenance fund, including 7.5% of net annual earnings tax receipts; authorizing the issuance of an amount not to exceed $500,000,000 in sanitary sewer system revenue bonds for funding sewer improvements; declaring the City’s intention to reimburse itself from bond proceeds for bond related expenditures; directing the City Clerk to provide notice of the election; directing the City Clerk to provide notice to the Director of Revenue if the sales tax question is passed by the voters; and recognizing an emergency.

Legislation History
DateMinutesDescription
5/11/2012 Filed by the Clerk's office
5/10/2012 Referred to Finance and Governance & Transportation Committee
5/17/2012 Do Pass as a Committee Substitute
5/17/2012 Assigned Third Read Calendar as Substituted
5/24/2012 Councilmember Johnson Move to Amend
5/24/2012 Passed as Substituted and Amended

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120458.pdf Authenticated 8451K Authenticated
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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 120458, AS AMENDED

 

Calling an election on August 7, 2012, for the purpose of asking voters to prohibit renewal of the expired motor vehicle fee and to forbid billing and collection of a real estate tax for park and boulevard maintenance and trafficway maintenance, and to forbid billing and collection of the boulevards and parkways front foot assessment and to collect in their place a one-half cent sales tax for parks and to establish a dedicated street maintenance fund, including 7.5% of net annual earnings tax receipts; authorizing the issuance of an amount not to exceed $500,000,000 in sanitary sewer system revenue bonds for funding sewer improvements; declaring the City’s intention to reimburse itself from bond proceeds for bond related expenditures; directing the City Clerk to provide notice of the election; directing the City Clerk to provide notice to the Director of Revenue if the sales tax question is passed by the voters; and recognizing an emergency.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. DECLARATION OF PURPOSE. The City Council finds it necessary to present propositions to the voters as part of the reform of the City’s revenue systems, and, therefore, presents questions to the voters for these purposes:

A.                PARKS. To simplify the funding of parks, the motor vehicle fee is eliminated, and park and boulevard and trafficway maintenance real estate taxes or assessments based on the footage of real property along boulevards or parkways will no longer be levied if voters enact a sales tax to be used for parks purposes;

 

B.                 STREETS. To use money currently devoted to parks purposes that can be used for enlarging the City’s street maintenance fund if voters enact a sales tax to be used for parks purposes; and

C.                 BONDS. To authorize borrowing an amount not to exceed $500,000,000 for the purpose of constructing improvements to the City’s sanitary sewer system, and to evidence such borrowing by the issuance of sanitary sewer system revenue bonds of the City of Kansas City, Missouri in an amount not to exceed $500,000,000.

Section 2. ELECTION CALLED. That an election is called on August 7, 2012, for the purpose of submitting to the voters of Kansas City questions to begin reformation of the City’s revenue systems, to enlarge the City’s street maintenance program, and to issue up to $500,000,000 sanitary sewer system revenue bonds.

Section 3. BALLOT TITLE – ELIMINATION OF FEES AND TAXES; ESTABLISHMENT OF STREET MAINTENANCE FUND; ENACTMENT OF PARKS SALES TAX. The ballot title for the elimination of the motor vehicle fee and park and boulevard and trafficway maintenance real estate taxes and assessments based on the footage of real property along boulevards or parkways, establishment of a street maintenance fund, and enactment of a parks sales tax shall be:

QUESTION 1

 

SHALL THE FOLLOWING BE APPROVED?

Shall the City of Kansas City, Missouri:

 

                     Prohibit the renewal of the expired annual $12.50 per motor vehicle fee,

                     Cease billing and collecting the trafficway maintenance tax by setting its assessment at $0.00,

                     Cease billing and collecting the park and boulevard maintenance tax by setting its assessment at $0.00,

                     Cease billing and collecting the boulevards and parkways front foot assessment by setting its assessment at $0.00,

                     Enact as a replacement a parks sales tax of ½-cent authorized by Section 644.032 of the Revised Statutes of Missouri for the purpose of providing for the maintenance and operations of local parks, parkways, boulevards and community centers,

                     Establish a dedicated fund to be used exclusively for street maintenance, and

                     Transfer no less than 7.5% of the net annual earnings tax receipts to the dedicated street maintenance fund

effective January 1, 2013 and each following year for as long as the parks sales tax is in effect?

Section 4. BALLOT TITLE – SANITARY SEWER SYSTEM REVENUE BONDS. The ballot title for the authorization of up to $500,000,000 in sanitary sewer system revenue bonds shall be:

QUESTION 2

 

SHALL THE FOLLOWING BE APPROVED?

Shall the City of Kansas City, Missouri issue sanitary sewer system revenue bonds in the principal amount not to exceed $500,000,000 for the purpose of extending and improving the sanitary sewer system of the City, including compliance with the federally mandated Consent Decree for the Overflow Control Program, with the principal and interest of the bonds to be payable solely from the revenues derived by the City from the operation of its sanitary sewer system?

 

Section 5. ELECTION NOTICE. The Notice of Election shall read as follows:

NOTICE OF ELECTION

 

CITY OF KANSAS CITY, MISSOURI

Notice is given to the qualified voters of the City of Kansas City, Missouri, that the City Council of the City has called a special election to be held in the City on August 7, 2012, commencing at 6:00 A.M. and closing at 7:00 P.M., on the questions contained in the following sample ballot:

___________________________________________________________

OFFICIAL BALLOT

 

CITY OF KANSAS CITY

 

SPECIAL ELECTION, AUGUST 7, 2012

 

QUESTION 1

 

Shall the City of Kansas City, Missouri:

 

                     Prohibit the renewal of the expired annual $12.50 per motor vehicle fee,

                     Cease billing and collecting the trafficway maintenance tax by setting its assessment at $0.00,

                     Cease billing and collecting the park and boulevard maintenance tax by setting its assessment at $0.00,

                     Cease billing and collecting the boulevards and parkways front foot assessment by setting its assessment at $0.00,

                     Enact as a replacement a parks sales tax of ½-cent authorized by Section 644.032 of the Revised Statutes of Missouri for the purpose of providing for the maintenance and operations of local parks, parkways, boulevards and community centers,

                     Establish a dedicated fund to be used exclusively for street maintenance, and

                     Transfer no less than 7.5% of the net annual earnings tax receipts to the dedicated street maintenance fund

effective January 1, 2013 and each following year for as long as the parks sales tax is in effect?


YES _____

 

NO _____

 

QUESTION 2

 

Shall the City of Kansas City, Missouri issue sanitary sewer system revenue bonds in the principal amount not to exceed $500,000,000 for the purpose of extending and improving the sanitary sewer system of the City, including compliance with the federally mandated Consent Decree for the Overflow Control Program, with the principal and interest of the bonds to be payable solely from the revenues derived by the City from the operation of its sanitary sewer system?

 

YES _____

 

NO _____

Instructions to voters will be supplied by the election authorities.

___________________________________________________________

A complete copy of Committee Substitute for Ordinance No. 120458, (as it may be amended) submitting these questions to the electorate is on file in the Office of the City Clerk of Kansas City, Missouri, and is open for inspection and copying.

The election will be held at the following polling places in the City of Kansas City, Missouri: [insert list in last publication only]

_________________________________________________________

I hereby certify that the foregoing is the legal notice to be published pursuant to Section 115.127, RSMo, as amended.

Given under my hand and the official seal of the Kansas City, Missouri, this _____ day of ____________________, 2012.

(SEAL)

______________________________

VICKIE THOMPSON-CARR

City Clerk of Kansas City, Missouri

Before me, a notary public, personally appeared Vickie Thompson-Carr, to me known to be the City Clerk of Kansas City, Missouri, and the person who acknowledged to me that she executed the same for the purposes therein stated.

______________________________

Notary Public

My Commission Expires:____________________________

Section 6. NOTICE TO ELECTION AUTHORITIES BY CITY CLERK. That following passage of this ordinance the City Clerk shall deliver certified copies of this ordinance and notice of election to the Clerk of Cass County, Board of Election Commissioners of Clay County, Board of Election Commissioners of Kansas City, and Board of Election Commissioners of Platte County, not later than May 29, 2012, which shall be the authority of each election authority of the City to submit the amendment to the electors of Kansas City and to give public notice as provided by law.

Section 7. REPEAL OF MOTOR VEHICLE FEE. That Sections 40-291, 40-292, and 40-293, Code of Ordinances, are repealed.

Section 8. LIMITATION ON TAXES AND ASSESSMENTS. That contingent upon approval of the voters of a sales tax authorized by section 644.032, Revised Statutes of Missouri, and presented in Question 1 on August 7, 2012, a new Chapter 68, Article X, Code of Ordinances is enacted to read as follows:

ARTICLE X. LEVIES AND ASSESSMENTS

Sec. 68-580. Authorizations.

The following taxes, fees or assessments are authorized by the City Charter for the benefit of the City’s parks, boulevards and trafficways:

(1) Park and boulevard maintenance tax;

(2) Boulevards and parkways front foot assessments; and

(3) Trafficway maintenance tax.

Sec. 68-581. Prohibition on imposing taxes, fees or assessments.

The City Council was forbidden by voters on August 7, 2012, to bill and collect these authorized taxes, fees or assessments, thereby requiring that the City annually set the levies or assessments described in section 68-580 as zero. This prohibition shall expire upon the termination of the sales tax authorized by section 644.032, Revised Statutes of Missouri, approved by the voters on August 7, 2012.

Sec. 68-582. Duty to set levies or assessments at zero.

Beginning January 1, 2013 and each year thereafter when levies are set by the City Council as part of its annual budget deliberations, the City Council will adopt appropriate ordinances that establish the park and boulevard maintenance and trafficway maintenance taxes at $0.00, and establish the boulevards and parkways front foot assessments at $0.00.

Section 9. ENACTMENT OF SALES TAX. That Article VII, entitled "Sales Taxes," of Chapter 68 of the Code of Ordinances, entitled "Taxation," is amended, contingent upon approval of the voters on August 7, 2012 of Question 2, by enacting a new Section 68-448, to read as follows:

Sec. 68-448. Imposition of tax (Parks 2012)

Pursuant to the authority granted by and subject to the provisions of section 644.032, RSMo., a tax for the benefit of the city is hereby imposed upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable services at retail to the extent and in the manner provided in sections 144.010 – 144.525 RSMo., and the rules and regulations of the director of revenue issued pursuant thereto. The rate of the tax shall be 1/2 percent on the receipts from the sale at retail of all tangible personal property or taxable services at retail within the city, if such property and such services are subject to taxation by the state under the provisions of section 144.010 – 144.525 RSMo. The tax shall become effective January 1, 2013, and shall apply to all sales made after December 31, 2012, and shall be collected as provided in section 644.033, RSMo.

 

Section 10. STREET MAINTENANCE FUNDING POLICY. That Article XIV, entitled "Budgetary and Financial Policies” of Chapter 2 of the Code of Ordinances, entitled "Administration," is amended, contingent upon approval of the voters on August 7, 2012 of Question 1, by enacting a new Division 4, Section 2-2000, to read as follows:

 

Article XIV. Budgetary and Financial Policies

 

Division 4. Street Maintenance Funding Policy

 

Sec. 2-2000. Street Maintenance Fund.

 

(a)    Findings.

 

(1)               Deferred maintenance of the city’s streets must be addressed.

 

(2)               The fiscal year 2012-13 budget provides $8 million for street maintenance, but additional funds are needed to meet immediate needs.

 

(3)               There is available a source of dedicated funding for the department of parks and recreation through the sales tax authorized by section 644.032, Revised Statutes of Missouri.

 

(4)               By providing a dedicated source of funding to the department of parks and recreation the current general fund support of the department can be discontinued and shifted to street maintenance.

 

(5)               The parks sales tax will raise revenue sufficient to allow the city to stop billing and collecting the current trafficway real estate tax, and still provide about $3.3 million annually for street maintenance.

 

(b)   Policy.

 

(1)               It is the policy of the city to utilize the Motor Fuel Tax Fund as its dedicated street maintenance fund.

 

(2)               It is the desire of the city to increase the level of street maintenance above the amount budgeted for that purpose in the fiscal 2012-13 budget.

 

(3) The city council will budget, appropriate and transfer to the street maintenance fund each year an amount no less than 7.5% of the net annual earnings tax receipts. Any amounts thus transferred will be restricted exclusively for construction, reconstruction, maintenance, repair, policing, signing, lighting and cleaning roads and streets.

 

(c)    Source of funding.

 

(1)               Implementation of this street maintenance funding policy is based on the adoption of a one-half cent sales tax devoted to parks purposes authorized by the voters of the city on August 7, 2012.

 

(2)               With a dedicated stream of revenue to fund the parks and recreation department, current general fund support of the parks and recreation department will be redirected to street maintenance.

 

(3)               Funds budgeted in the fiscal year 2012-13 budget for street maintenance will be allocated to the street maintenance fund.

 

Section 11. REIMBURSEMENT OF EXPENDITURES. The City expects to make expenditures on and after the date of adoption of this Ordinance in connection with the projects to be funded by the Bonds, and the City intends to reimburse itself for such expenditures with the proceeds of the Bonds. The maximum principal amount of Bonds expected to be issued for the Project is an amount not to exceed $500,000,000.

Section 12. NOTICE TO DIRECTOR OF REVENUE BY CITY CLERK. If the sales tax proposed under the authority of Section 644.032, Revised Statutes of Missouri, is approved by the voters, the City Clerk shall, within 10 days after the approval, forward to the Missouri Director of Revenue by United States registered or certified mail, a certified copy of this ordinance together with certifications of the election returns accompanied by a map of the City clearly showing its boundaries.

 

Section 13. EMERGENCY RECOGNIZED. This ordinance, providing for the submission of questions to the people of Kansas City, Missouri, is hereby recognized to be an emergency measure within the meaning of Section 503(a)(3)(A) of the Charter because it calls an election and provides for the submission of proposals to the people; and as such shall become effective immediately following approval by the Mayor, or five days after passage if no action is taken by the Mayor to approve or veto the ordinance.

__________________________________________________________

 

Approved as to form and legality:

 

 

______________________________

William D. Geary

City Attorney