By Paul Thompson

Northeast News

February 22, 2017

KANSAS CITY, Missouri – City Manager Troy Schulte and 1^st District Councilman Scott Wagner teamed up for a frank conversation with potential Northeast voters about the $800 million General Obligation bond issue on Tuesday, February 21 at the Mattie Rhodes Center.

Kansas City, Missouri voters will decide on the three questions that comprise the $800 million bond issuance during the upcoming April 4, 2017 election. Question 1, which represents the bulk of the spending at $600 million, deals with streets, bridges, and sidewalks. Specifically, Question 1 creates a citywide sidewalk repair program that will allow the City to stop issuing assessments to property owners. Question 2 would dedicate $150 million for flood control, while unlocking an additional $450 million in federal funds to combat flooding issues throughout the city. Question 3 would dedicate $50 million towards public building repair and renovation. Projects to be tackled by Question 3 include the construction of a new animal shelter off of Gregory Rd., ADA updates at Starlight Theatre, and matching funds for the renovation and repair of Corinthian Hall at the Kansas City Museum. The three questions need to be approved separately, by 57.1% of voters in each instance, in order to become a reality.

Schulte didn’t shy away from the major infrastructure issues facing Kansas City during the meeting, acknowledging that the City has billions of dollars worth of lingering infrastructure needs that will still need to be addressed even if the $800 million bond issue is approved by voters. Schulte added that Kansas City’s size presents challenges: though it is roughly the same area as New York City, Kansas City only has roughly 470,000 people living in it, compared to around 8.5 million living in New York.

In addition to the no-assessment sidewalk repair program, Schulte touted the renovation and restoration of Corinthian Hall as an aspect of the G.O. Bond issue that directly affects Northeast residents. Schulte noted that the Corinthian Hall project is expected to cost $15 million, of which private donations are slated to cover $8 million of the costs. According to Schulte, the City would cover the remaining $7 million needed to finish the Corinthian Hall improvements.

Neither Schulte nor Councilman Wagner shied away from the property tax increase that will be required in order to pay off the $800 million in general obligation bonds. For a Kansas City resident with a $140,000 home (the city average) and a $15,000 car, property taxes are expected to increase annually by an average of $8 per year, assuming the all three bond questions are approved. By the end of the 20-year bond program, that homeowner would be paying an additional $160 annually in property taxes. Of course, those increases would rise for residents who own more valuable homes and vehicles.

“We tried to make it affordable, and we tried to make it equitable,” said Schulte.

Wagner juxtaposed the current $800 million G.O. Bond proposal with the $300 million issuance that the city passed in 2004. Wagner noted that in the case of the 2004 bonds, City Council promised not to raise taxes in order to pay for them. Though the City has managed to keep that promise, Wagner said that it was kept the expense of Public Improvements Advisory Committee dollars.

“To our detriment, we fulfilled that promise,” said Wagner. “We pay for it through PIAC.”

Northeast residents who attended the informational meeting at Mattie Rhodes Center also had the opportunity to submit questions to Schulte and Wagner. Mary Cyr of Mattie Rhodes Center read the questions to the city leaders.

When asked how the City can be assured that federal funds will be available to match taxpayer contributions throughout the life of the 20-year bonds, Schulte was clear that there is no way to be sure. He added that even if those funds aren’t available in the future, the City maintains an obligation to fix infrastructure issues on behalf of its citizens. That’s why, Schulte argued, it’s important to pass the $800 million bond issue in April.

“We don’t; there’s no guarantee,” Schulte said. “While they’re there, we’re going to take advantage of them.”

When asked about what kind of oversight there will be over how the bond dollars are spent, the city leaders broke down several ways City Hall can be held accountable.  According to Wagner, specific projects will be required to be outlined in the five-year citywide budget, the annual budget, within the yearly bond issuances (roughly $40 million annually), and in a yearly G.O. Bond report card, which is obligated through the ordinance passed by City Council. Wagner noted that there will also be an opportunity for course correction through the PIAC process.

“City Council folks listen to their PIAC reps,” Wagner added.

Other issues discussed by Wagner and Schulte included the urgency City Hall feels to act now, the severe implications if the three ballot questions fail in April, and how the City has pledged to match funds for neighborhoods looking to use PIAC money to build new sidewalks in their communities.

After the meeting, Wagner said that he felt good about the level of involvement and interest displayed by Northeast residents.

“I think the questions that were asked were very much on point,” Wagner said. “The whole idea was to provide a value, because at the end of the day, we’re asking people to raise their taxes.”