KC voters to decide on $1.7 billion worth of bond proposals in August. What to know
Kansas City voters will officially decide on several ballot measures this August that amount to $1.7 billion worth of bond financing for city projects.
The City Council on Thursday approved sending several “no-tax” bond initiatives and a sales tax extension to voters that would fund various projects like water system improvements and affordable housing programs.
The five measures will appear on the Aug. 4 primary election ballots.
City officials previously told council members that none of the proposals would require increasing taxes to pay off the bond debt. City Treasurer Kimberly Carter said the city would strategically issue the bonds as older financed debt is paid off.
“So it allows the city to continue making strategic capital investments without increasing their taxes and without creating pressure on our general fund,” Carter said.
What do the ballot measures include?
The five ballot measures include two separate $750 million bond proposals meant for improving KC Waters sanitary sewer system and improving and extending its water system.
Hugh Wooden, a senior finance analyst for KC Water, recently said $1.5 billion of revenue is needed because KC Water has $2.9 billion worth of capital improvement project costs for both the water and sewer systems over the next five years. Otherwise, the city-owned utility company would need to pursue higher-cost financing options.
“At which case, we would have to ask for significant rate increases above the ones we’ve been asking for year after year,” Wooden said.
The ballot measures also include two separate $100 million bond proposals. One would support the city’s Housing Trust Fund, which aims to create and rehabilitate affordable housing in the city and address blight by renovating vacant properties.
The other would finance capital improvement projects for city conventions facilities and other government buildings, like ongoing improvements to the city’s conventions facilities and maintenance at City Hall.
What about the Economic Development sales tax?
Voters will also decide whether to extend the one-eighth cent Central City Economic Development sales tax.
The sales tax supports economic development projects in the city’s East Side, specifically between Ninth Street and Gregory Boulevard to the north and south, and Indiana Avenue and The Paseo to the east and west.
The current sales tax that voters approved in 2017 is set to expire in September 2027. The proposal would extend the sales tax that generated $13.5 million last year for another 10 years.
