CITY OF LENEXA 3/8-CENT CITY SALES TAX INCREASE PROPOSAL

What is being proposed?

• The City of Lenexa is proposing a 3/8-cent city sales tax increase
• If enacted, it would increase the city sales tax to 1½-cents
• Currently the city has a 1-cent general sales tax and a 1/8-cent dedicated sales tax for the nationally-recognized “Rain to Recreation” stormwater program
• Lenexa’s total sales tax rate would remain competitive in Johnson County and the region
• The proposed tax would raise an additional estimated $3.4 million to $3.5 million per year (the equivalent of 3.5 mills of property tax)
• The proposed tax would have a 20-year sunset
• The proposed tax will be decided by voters by mail ballot between May 7-27, 2008

How would the revenues be spent?  

• The City is proposing revenues be invested in three areas:
  • ROADS
    • Approximately $1.4 million per year of the proposed sales tax revenue would be spent on road maintenance
    • Lenexa currently has about 600 lane miles of roads to maintain and the amount is continuously growing
    • Currently the City dedicates approximately $1.3 million per year to road maintenance, so the sales tax would more than double the annual amount available for pavement management
  • PARKS & RECREATION
    • Approximately $0.5 million per year of the proposed sales tax revenue would be spent on parks & recreation facilities
    • The proposed sales tax revenue would more than double the annual amount currently dedicated to park improvements and enhancements
    • The revenues would be used for:
      • Improvements to newer parks in western Lenexa that will allow them to be more fully utilized, such as shelters and fishing piers
      • Maintenance and upgrades at existing parks, including much-needed sports practice fields
      • Refurbishment of Lenexa’s aging Community Center and Senior Center
  • CIVIC CENTER AT CITY CENTER
    • Approximately $1.5 million per year of the proposed sales tax revenue would be spent on developing a new Civic Center at City Center
    • The Civic Center would be a multi-use facility, offering recreational, cultural, educational, social, and civic amenities
    • The City of Lenexa is currently exploring opportunities for cooperation with Johnson County Libraries, Johnson County Parks & Recreation, Johnson County Community College, and Johnson County Museum

Why is the City of Lenexa proposing the sales tax increase now?

• Each of the proposed areas of investment have been highly-ranked by Lenexa residents as key components of the high quality of life they enjoy
  
  
• Deferred investment in these areas will cause them to be more costly later on

What happens if the sales tax increase doesn’t pass?

• If the proposed sales tax increase doesn’t pass, the City will either have to defer the planned investments or raise the necessary revenue in other ways, such as through property taxes

What is the official ballot language on which residents will be voting?

The official ballot language, to be voted on between May 7-27, is as follows:

Shall the following be adopted?

Shall a retailers’ sales tax (also known as “Investing in Our Future”) in the amount of three-eighths of one percent (.375%) be levied in the City of Lenexa, Kansas (the “City”), for the purpose of:

(a) improving, rebuilding and maintaining roads, including but not limited to, sidewalks, storm water facilities and street lighting associated therewith;
(b) development and maintenance of City parks;
(c) design, construction and operation of cultural and recreational facilities and amenities for the community;
(d) all things related and necessary to such projects, including but not limited to acquisition of land; construction of public buildings and facilities associated therewith and payment of the principal and interest on bonds or other obligations issued to finance such projects;
Provided that such retailers’ sales tax shall expire 20 years from the date of imposition, all pursuant to K.S.A. 12-187 et seq., as amended, and K.S.A. 12-195.

Has the Lenexa Chamber of Commerce taken a position on the proposal?

Yes, the Lenexa Chamber of Commerce Board of Directors has voted to endorse the proposal because it believes it is critical to maintain Lenexa's high quality of life and that now is the time for these investments.

The Board believes the recognized high quality of life in Lenexa has been a cornerstone of the tremendous growth and economic vitality we enjoy. The Board also believes the additional resources generated by the proposed sales tax increase are essential to maintaining and maximizing these critical community assets in a timely and cost-effective manner, and that the proposal is both reasonable and will not cause Lenexa's sales tax rate to be regionally uncompetitive.