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Legislation #: 170919 Introduction Date: 11/9/2017
Type: Ordinance Effective Date: none
Sponsor: None
Title: Amending Chapter 68, Code of Ordinances, entitled “Taxation,” by enacting a new Section 68-450, to extend for 20 years the City’s current 1% sales tax used for capital improvements and to codify dedication of the available annual sales tax receipts with 35% for neighborhood conservation, maintenance and improvements divided equally among Council districts, at least 25% for street resurfacing, repair, and the construction of complete street facilities, and the remainder allocated for other capital improvements, including the City’s share of the costs for the replacement of the Buck O’Neil Bridge; reaffirming the role of the Public Improvements Advisory Committee; providing for submission of this ordinance to the qualified voters of the City for their approval at an election called for Tuesday, April 3, 2018; authorizing and directing the City Clerk to notify the responsible election authorities of this election; authorizing and directing the City Clerk to notify the Missouri Director of Revenue if the proposal is approved by the voters; and recognizing this ordinance as having an accelerated effective date.

Legislation History
DateMinutesDescription
11/9/2017 Filed by the Clerk's office
11/9/2017 Referred to Finance and Governance Committee
11/29/2017 Hold On Agenda (12/6/2017)
12/6/2017 Hold On Agenda (12/13/2017)
12/13/2017 Hold On Agenda (12/20/2017)
12/20/2017 Do Pass as a Committee Substitute
12/21/2017 Assigned Third Read Calendar as Substituted
1/18/2018 Passed as Substituted

View Attachments
FileTypeSizeDescription
170919.pdf Authenticated 273K Authenticated
CIP FY2007-2017.pdf Advertise Notice 399K Staff report

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 170919

 

Amending Chapter 68, Code of Ordinances, entitled “Taxation,” by enacting a new Section 68-450, to extend for 20 years the City’s current 1% sales tax used for capital improvements and to codify dedication of the available annual sales tax receipts with 35% for neighborhood conservation, maintenance and improvements divided equally among Council districts, at least 25% for street resurfacing, repair, and the construction of complete street facilities, and the remainder allocated for other capital improvements, including the City’s share of the costs for the replacement of the Buck O’Neil Bridge; reaffirming the role of the Public Improvements Advisory Committee; providing for submission of this ordinance to the qualified voters of the City for their approval at an election called for Tuesday, April 3, 2018; authorizing and directing the City Clerk to notify the responsible election authorities of this election; authorizing and directing the City Clerk to notify the Missouri Director of Revenue if the proposal is approved by the voters; and recognizing this ordinance as having an accelerated effective date.

 

WHEREAS, under the provisions of 94.500 to 94.550, RSMo, the City Sales Tax Act, the cities of the state are empowered to impose by ordinance, for general purposes, a tax for general revenue purposes on all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable services at retail on the receipts from the sale at retail of all tangible personal property or taxable services at retail within any city adopting such tax, if such property and services are subject to taxation under the provisions of 144.010 to 144.525, RSMo., and Kansas City, Missouri (the “City”) desires to avail itself of such authorization; and

 

WHEREAS, under the provisions of the City Sales Tax Act., no ordinance enacted pursuant to that authority shall be effective until it has been submitted to the qualified voters of the city and approved by a majority of the qualified voters voting; and

 

WHEREAS, it is the intention of the Council to fund a capital improvements program, as defined herein, for 20 additional years by the extension of the current 1% general sales tax used for capital improvements and maintenance; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Enactment of tax. That contingent upon approval of the voters of a sales tax authorized by Sections 94.500 – 94.550, Revised Statutes of Missouri, and presented in Question 1 on April 3, 2018, a new Section 68-450, Code of Ordinances is enacted to read as follows:

 

Sec. 68-450. Imposition of Sales tax (2019)

 

(a) Imposition of sales tax. Pursuant to the authority granted by and subject to the provisions of section 94.500 through section 94.550, Revised Statutes of Missouri, the City Sales Tax Act, 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 section 144.010 through section 144.525, Revised Statutes of Missouri, and the rules and regulations of the director of revenue issued pursuant thereto. The rate of the tax shall be 1% 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 through section 144.525, Revised Statutes of Missouri. The tax shall become effective January 1, 2019, and shall apply to all sales made after December 31, 2018, for a period of twenty years and shall be collected as provided in section 94.500 through section 94.550, Revised Statutes of Missouri.

(b) Allocation of sales tax.

(1) Special program funding - neighborhoods.

 

(i) PIAC recommendations. For fiscal years beginning May 1, 2019, the Public Improvements Advisory Committee (“PIAC”) shall make recommendations regarding 35% of the available sales tax receipts raised through this sales tax for neighborhood conservation, maintenance and improvements divided equally among Council districts.

 

(ii) City Council approval. For fiscal years beginning May 1, 2019, the City Council’s final approval will include PIAC’s recommendations for 35% of the available sales tax receipts raised through this sales tax for neighborhood conservation, maintenance and improvements divided equally among Council districts.

 

(2) Special program funding - capital improvements.

 

(i) City Manager recommendations. For fiscal years beginning May 1, 2019, the City Manager, with review and comment by PIAC, shall make recommendations regarding at least 25% of the available sales tax receipts for street resurfacing, repair, and the construction of complete street facilities and the remainder allocated for other capital improvements, including the City’s share of the costs for the replacement of the Buck O’Neil Bridge.

 

(ii) City Council approval. For fiscal years beginning May 1, 2019, the City Council’s final approval will be necessary for at least 25% of the available sales tax receipts for street resurfacing, repair, and the construction of complete street facilities and the remainder allocated for other capital improvements, including the City’s share of the costs for the replacement of the Buck O’Neil Bridge.

 

(c) Capital improvement defined. For purposes of this section, the term capital improvement shall be defined as the construction, repair, maintenance, replacement, expansion, or the debt service thereon, of any public capital asset.

 

(d) Transfer of funds.

(1) Neighborhoods funds. The two council members from the affected district may request, in writing to the city manager, the transfer of unencumbered balances, in an amount not to exceed $500,000.00, of the sales tax receipts apportioned to the district for neighborhood conservation, maintenance and improvement projects. The city manager shall seek the recommendation of the PIAC members from the affected district prior to approval of any request to transfer funds under this subsection.

Section 2. Reaffirmation of Public Improvements Advisory Committee process. The Public Improvement Advisory Committee process for identifying and prioritizing the City’s needs for neighborhood conservation, maintenance, and improvements will be followed.

 

Section 3. Organization and role of the Public Improvements Advisory Committee. The organization of the Public Improvements Advisory Committee will be as follows:

 

1. Chair. The mayor shall appoint a voting member as chairperson.

 

2. Regular members. The at-large and in-district council member for each district shall each appoint one resident of their district as a regular voting member.

 

3. Terms. All representatives and the chair will serve two year terms and be subject to reappointment.

 

4. Multi-year planning. The prepared neighborhoods budget shall be multi-year (5 years minimum) and shall contain an escalating contingency to fund unforeseen increases in estimated costs.

 

Current PIAC members shall continue to serve until replaced.

 

Section 4. Maximum public input in the neighborhood improvements process. The Public Improvements Advisory Committee is directed to provide for maximum public input before finalizing each year’s recommendations for neighborhood conservation, maintenance, and improvements.

 

Section 5. Inclusion of five-year Capital Improvements Program in annual budget. That the City Manager is directed to include the five-year Capital Improvements Program in the annual budget.

 

Section 6. Reaffirmation of MBE/WBE and Workforce policies. The City’s MBE/WBE and construction workforce policies will be followed in the use of all capital appropriations.

 

Section 7. Election called. An election is called and shall be held on Tuesday, April 3, 2018, at which election the question of continuing the tax described in this ordinance shall be submitted to the qualified voters of the City for their consideration, as required by section 94.510, Revised Statutes of Missouri.

 

Section 8. Ballot title. The ballot title shall be:

 

QUESTION _____

 

SHALL THE FOLLOWING BE APPROVED?

 

Shall the City of Kansas City, Missouri reauthorize the existing 1% sales tax authorized by Section 94.510 of the Revised Statutes of Missouri for a period of 20 years to expire on December 31, 2038; continue to fund a capital improvements program for public needs including, but not limited to streets, bridges, curbs, sidewalks, flood control, parks, and public buildings; dedicate in this program 35% of the available annual sales tax receipts for neighborhood conservation, maintenance and improvements to be divided equally among council districts based on the recommendations of the Public Improvements Advisory Committee (“PIAC”) and the final decision of the City Council; dedicate in this program , with review and comment by PIAC, at least 25% of the available annual sales tax receipts for street resurfacing, repair, and construction of complete street facilities and the remainder for other capital improvements, including the City’s share of the costs for the replacement of the Buck O’Neil Bridge?

 

_____ YES _____ NO

 

The voter who desires to vote in favor of this proposition shall place an X in the box opposite Yes. The voter who desires to vote against this proposition shall place an X in the box opposite No.

 

Section 9. Delivery of Ordinance by City Clerk to Election Authorities. That the City Clerk shall deliver certified copies of this ordinance and notice of election to the Board of Election Commissioners of Kansas City, Missouri, Board of Election Commissioners of Clay County, Board of Election Commissioners of Platte County, and the County Clerk of Cass County, not later than January 23, 2018, which shall be the authority of the respective election authorities of the City to submit these amendments to the electors of Kansas City and to give public notice as provided by law.

 

Section 10. Election Notice. That the notice of election shall read as follows:

 

=======================================================

 

NOTICE OF ELECTION

CITY OF KANSAS CITY, MISSOURI

 

Notice is hereby given that the City of Kansas City, Missouri has called an election to be held in said city on Tuesday, April 3, 2018, at which election all qualified voters residing within the City of Kansas City, Missouri will be given the opportunity to vote.

 

The official ballot will be in substantially the following form:

 

OFFICIAL BALLOT

CITY OF KANSAS CITY

 

QUESTION 1

 

Shall the City of Kansas City, Missouri reauthorize the existing 1% sales tax authorized by Section 94.510 of the Revised Statutes of Missouri for a period of 20 years to expire on December 31, 2038; continue to fund a capital improvements program for public needs including, but not limited to streets, bridges, curbs, sidewalks, flood control, parks, and public buildings; dedicate in this program 35% of the available annual sales tax receipts for neighborhood conservation, maintenance and improvements to be divided equally among council districts based on the recommendations of the Public Improvements Advisory Committee (“PIAC”) and the final decision of the City Council; dedicate in this program , with review and comment by PIAC, at least 25% of the available annual sales tax receipts for street resurfacing, repair, and construction of complete street facilities and the remainder for other capital improvements, including the City’s share of the costs for the replacement of the Buck O’Neil Bridge?

 

_____ YES _____ NO

 

[Instructions to voters will be supplied by the election authorities]

 

A full and complete copy of the ordinance submitting the above proposition to the electorate is on file in the office of the City Clerk of Kansas City, Missouri where it is open for inspection and copying.

 

The polling places for the election will be [insert list of polling places in last publication only].

 

=======================================================

 

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

 

Given under my hand and the official seal of the City of Kansas City, Missouri, this _________ day of January, 2018.

 

 

(SEAL) _______________________________

Marilyn Sanders

City Clerk, City of Kansas City, Missouri

 

Before me, a notary public, personally appeared Marilyn Sanders, to me known to be the City Clerk of the City 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 11. Notice to the Missouri Director of Revenue by the City Clerk. If 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 12. Accelerated Effective Date. That this ordinance provides for the submission of a proposal to the people of Kansas City, Missouri, and is hereby recognized as having an accelerated effective date within the meaning of Section 503(a)(3)(A), Charter of Kansas City, and as such shall become effective in accordance with that section.

___________________________________________________

 

Approved as to form and legality:

 

 

 

_______________________________

Nelson V. Munoz

Assistant City Attorney