Tag: Wichita Chamber of Commerce

  • In Wichita, pro-sales tax campaign group uses sales tax-exempt building as headquarters

    In Wichita, pro-sales tax campaign group uses sales tax-exempt building as headquarters

    While “Yes Wichita” campaigns for higher sales taxes, it operates from a building that received a special exemption from paying sales tax.

    Many Wichitans remember the building at the northwest corner of First and Market Streets as the Kansas Gas and Electric Building. Today, under new ownership, it’s being converted to luxury apartments under the name “The Lux.”

    “Yes Wichita” campaign headquarters, located in a building that received a sales tax exemption.
    “Yes Wichita” campaign headquarters, located in a building that received a sales tax exemption.
    The new owners of The Lux felt that they shouldn’t have to pay sales tax on things they purchase (like construction materials) while renovating the building. So they approached the city. On October 2, 2012 the city granted their request and initiated the process whereby The Lux will avoid paying sales taxes.

    Fast forward two years. Now there’s a proposal to add one cent per dollar to the sales tax in Wichita. A group named “Yes Wichita” formed to promote the higher sales tax.

    When “Yes Wichita” — a group that campaigns for you to pay higher sales taxes on nearly everything from baby formula to automobiles — needed campaign headquarters, do you know where it decided to locate?

    That’s right. In The Lux, a building that does not have to pay sales tax on materials used in its conversion to luxury apartments.

    Really. I’m not kidding.

  • Voter support of taxpayer-funded economic development incentives

    Voter support of taxpayer-funded economic development incentives

    In a poll, about one-third of Wichita voters support local governments using taxpayer money to provide subsidies to certain businesses for economic development.

    In April Kansas Policy Institute commissioned SurveyUSA to conduct a scientific poll concerning current topics in Wichita. The press release from KPI, along with a link to the complete survey results, is available at Poll: Wichitans don’t want sales tax increase.

    The second question the survey asked was “In general, do you agree? Or disagree? With the idea of local governments using taxpayer money to provide subsidies to certain businesses for economic development?” Following are the results for everyone, and then divided by political party and political ideology.

    Overall, 55 percent disagreed with using taxpayer money to provide subsidies to certain businesses for economic development. 34 percent agreed.

    The results are fairly consistent across political party and ideology, although Republicans are somewhat more likely to agree with using taxpayer funds for economic development incentives, as are those who self-identify as political moderates.

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  • For Wichita, another economic development plan

    For Wichita, another economic development plan

    The Wichita City Council will consider a proposal from a consultant to “facilitate a community conversation for the creation of a new economic development diversification plan for the greater Wichita region.” Haven’t we been down this road before?

    This week the Wichita City Council will consider funding “the formulation of a new economic development strategy.” Here’s a summary provided by the city:

    Wichita State University approached STARNet about developing a proposal to assist WSU, the Wichita Metro Chamber of Commerce and the community with the formulation of a new economic development strategy. Over a period of almost ten months STARNet will manage a four phase process that will lead to an integrated economic development strategy that will prioritize how and where to deploy resources. The process will include a comprehensive review of the region’s assets and issues, development of a common vision, identification of priorties [sic] and egagement [sic] of stakeholders committed to strategy implementation.

    Starnet proposal to Wichita City CouncilIt sounds from this as though the city has not been engaging in economic development and strategizing. This reminds me of the $658 million in tax abatements Boeing received over several decades. Wasn’t that economic development? The answer from pro-sales tax forces was no, that wasn’t paid in cash. Also, even though Boeing has left Wichita, the facilities still generate $6 million in property taxes. So, it really worked after all, they say.

    (The tax abatements Boeing received were more valuable to the company than equivalent grants of cash. See What Boeing received from Wichita was better than cash.)

    Here’s something else from the proposal summary: “Project Objective: Support formulation of a Wichita Economic Development Strategy that integrates existing initiatives (e.g. GWEDC and WSU); is supported by the majority of regional stakeholders and can be used to guide policy discussions for use of new City/County revenues for job formation.” (emphasis added)

    I thought we already had a plan for the sales tax revenue, according to the city and the “Yes Wichita” group. Now we are told we need to start an expensive and lengthy planning process?

    What about the cost and funding? “The total estimated cost of the project is $234,929. Funding partners include WSU, Wichita Metro Chamber of Commerce, Greater Wichita Economic Development Coalition, Wichita Downtown Development Corporation, the City of Wichita and Sedgwick County. The City of Wichita is being asked to contribute an amount not to exceed $42,986. The funding partners will have an agreement with WSU who, in turn, will hold the contract with STARNet.”

    Here is the first thing that will be done, according to the proposal: “Secure Co-chairs to Lead Initiative: This regional initiative begins with the designation of at least two or more high level, objective, economic leaders agreeing to co–chair the on–going initiative. The co-chairs are often effective when chosen from an existing regional development group.”

    Wichita Chamber Leadership CouncilThis is written as through Wichita has been doing nothing in this regard. I wonder what the leaders of the Wichita Metro Chamber Leadership Council thinks of this? Here’s what the Chamber says about this council:

    The Leadership Council is a think tank comprised of 100 top business, non-profit and public-sector CEO’s for the purpose of discussing and pursuing resolutions of major issues or projects to make the Wichita area competitive for job creation, talent attraction, capital investment and therefore long-term economic prosperity. Created by the Wichita Metro Chamber of Commerce, the Council is co-chaired by Charlie Chandler (Intrust Bank Chairman and CEO) and Jeff Turner (retired CEO of Spirit AeroSystems). The Council was formed in 2012 and held its first meeting in September of the same year.

    So we’ve had two prominent Wichita business leaders shepherding an initiative for two years. Is this effort now discarded?

    Here’s something to watch for. Proposals like this contain buzzwords — something new and exciting, something that leaders can use to show they’re on the cutting edge. So note this language in the proposal:

    Moreover, economies don’t stop at municipal or county boundaries; they go where their residents drive to work—the “comutershed”. (Misused punctuation in the original.)

    I wonder when city leaders start using this neologism — comutershed — if they will correct the spelling of one of its base words.

    I urge taking a look at the proposal. The agenda packet is here: Wichita City Council, October 14, 2014.

  • Wichita debt levels seen to rise

    Wichita debt levels seen to rise

    As part of the campaign for a proposed Wichita sales tax, the city says that debt is bad. But actions the city has taken have caused debt levels to rise, and projections are for further increases.

    According to the most recent edition of Wichita’s Performance Measure Report, the city’s debt levels are projected to rise, based on three measures.

    Click for larger version
    Wichita Outstanding Net General Obligation Debt as a Percentage of Assessed Value
    One measure, named “Outstanding Net General Obligation Debt as a Percentage of Assessed Value,” is projected to rise. From 2007 through 2011, the average value for this measure was 1.50 percent. Since then its actual value has risen, and the city projects it to continue to rise, reaching 3.59 percent in 2015 and then 3.44 percent in 2016. (Click charts for larger versions.)

    Describing this measure, the city document explains “The level of outstanding debt as a percentage of assessed valuation is based on currently anticipated debt needs of the 2011-2020 Adopted Capital Improvement Program. The percentage is expected to increase as additional debt financing projects are implemented.” (emphasis added)

    In “Factors impacting outcomes,” the city explains “Slow assessed valuation growth coupled with increasing debt will lead to an increase in this measure.” (emphasis added)

    Wichita Outstanding Gross General Obligation Debt per Capita
    Wichita Outstanding Gross General Obligation Debt per Capita
    Another measure is “Outstanding Gross General Obligation Debt per Capita.” From 2007 to 2009 the average value was $1,216. It has risen since then, although not steadily. The value is projected to peak at $1,626 in 2015 and then fall to $1,610 in 2016.

    City documents explain: “Slow population growth coupled with increasing debt lead to an increase in this measure.” (emphasis added)

    Wichita Outstanding General Obligation Debt Service as a Percentage of Debt Service Fund Taxes Levied
    Wichita Outstanding General Obligation Debt Service as a Percentage of Debt Service Fund Taxes Levied
    Another measure is “Outstanding General Obligation Debt Service as a Percentage of Debt Service Fund Taxes Levied.” This measure is projected to rise to over twice its recent low value of 30 percent in 2009 to 64 percent in 2015 and 2016.

    The performance report describes this measure as “… outstanding General Obligation debt divided by taxes levied by the Debt Service Fund.” Its importance is this, says the city: “This is a measure of flexibility; if the percentage is lower, there are more future opportunities to initiate projects paid for with bonds.”

    The document also explains: “In the past, the City of Wichita’s borrowing needs have been lower because more projects were paid for with cash, rather than bonds.” Additionally, “Anticipated debt issuances will increase, based on programmed CIP improvements.”

  • In Wichita, promises of accountability and transparency

    In Wichita, promises of accountability and transparency

    Boosters of the proposed Wichita sales tax promise transparency. But Wichita has not delivered on that in the past, and still rebuffs the public’s right to know.

    When a city council member apologizes to bureaucrats because they have to defend why their agencies won’t disclose how taxpayer money is spent, we have a problem. When the mayor and most other council members agree, the problem is compounded. Carl Brewer won’t be mayor past April, but the city council member that apologized to bureaucrats — Pete Meitzner (district 2, east Wichita) — may continue serving in city government beyond next year’s elections. Wichita City Manager Robert Layton will likely continue serving for the foreseeable future.

    Wichita City Council Member Pete Meitzner does not support the public’s right to know how taxpayer funds are spent.

    Why is this important? Supporters of the proposed Wichita sales tax promise transparency in operations and spending, especially regarding the jobs fund. But requests for spending records by the city’s quasi-governmental agencies are routinely rebuffed. Simple requests for contracts without outside entities are rejected. The city supports this refusal to comply with the Kansas Open Records Act.

    Here are some things voters may want to consider as they evaluate promises of future transparency and accountability:

    • Many of the people presently in charge at city hall and at agencies like Greater Wichita Economic Development Coalition will still be in charge if the proposed sales tax passes.
    • The city council seems pleased with city manager Robert Layton. He has not advocated for citizens’ right to know how taxpayer money is spent despite being presented with compelling reasons why the city should act to increase transparency.
    • The Kansas Open Records Act does not prohibit the city and these agencies from releasing spending records. The city and agencies have made this decision, and have spent taxpayer resources fighting against the release of spending records.
    • If the city and its quasi-governmental agencies are serious about accountability and transparency, they could release the requested records today.
    • The city is unable to provide spending records in computer-readable form except for images. This data is not readily usable.
    • One of the co-chairs of the “Yes Wichita” group, Harvey Sorensen, has been a vigorous defender of government’s ability to spend taxpayer funds in secret, telling the city council that advocates for transparency simply want to embarrass the city, and there is no public purpose for their requests.

    Given this background, on what basis do we believe that the city and its agencies will change their attitude towards citizens’ right to know how taxpayer funds are spent?

    If the city wants to convince citizens that it has changed its attitude towards government transparency and citizens’ right to know how tax money is spent, it could positively respond to the records requests made by myself and Kansas Policy Institute.

    Following, from December 2012, an illustration of the city’s attitude towards citizens’ right to know.

    Wichita, again, fails at open government

    The Wichita City Council, when presented with an opportunity to increase the ability of citizens to observe the workings of the government they pay for, decided against the cause of open government, preferring to keep the spending of taxpayer money a secret.

    The occasion was consideration of renewing its contract with Go Wichita Convention and Visitors Bureau. I asked, as I have in the past for this agency and also for Wichita Downtown Development Corporation and Greater Wichita Economic Development Coalition, that they consider themselves to be what they are: public agencies as defined in the Kansas Open Records Act.

    In the past I’ve argued that Go Wichita is a public agency as defined in the Kansas Open Records Act. But the city disagreed. And astonishingly, the Sedgwick County District Attorney agrees with the city’s interpretation of the law.

    So I asked that we put aside the law for now, and instead talk about good public policy. Let’s recognize that even if the law does not require Go Wichita, WDDC, and GWEDC to disclose records, the law does not prohibit them from fulfilling records requests.

    Once we understand this, we’re left with these questions:

    Why does Go Wichita, an agency funded almost totally by tax revenue, want to keep secret how it spends that money, over $2 million per year?

    Why is this city council satisfied with this lack of disclosure of how taxpayer funds are spent?

    Why isn’t Go Wichita’s check register readily available online, as it is for Sedgwick County?

    For that matter, why isn’t Wichita’s check register online?

    It would be a simple matter for the council to declare that the city and its taxpayer-funded partner agencies believe in open government. All the city has to have is the will to do this. It takes nothing more.

    Only Wichita City Council Member Michael O’Donnell (district 4, south and southwest Wichita) gets it, and yesterday was his last meeting as a member of the council. No other council members would speak up in favor of citizens’ right to open government.

    But it’s much worse than a simple failure to recognize the importance of open government. Now we have additional confirmation of what we already suspected: Many members of the Wichita City Council are openly hostile towards citizens’ right to know.

    In his remarks, Wichita City Council Member Pete Meitzner (district 2, east Wichita) apologized to the Go Wichita President that she had become “a pawn in the policy game.” He said it was “incredibly unfair that you get drawn into something like this.”

    He added that this is a matter for the Attorney General and the District Attorney, and that not being a lawyer, she shouldn’t be expected to understand these issues. He repeated the pawn theme, saying “Unfortunately there are occasions where some people want to use great people like yourself and [Wichita Downtown Development Corporation President] Jeff Fluhr as pawns in a very tumultuous environment. Please don’t be deterred by that.”

    Mayor Brewer added “I would have to say Pete pretty much said it all.”

    We’ve learned that city council members rely on — as Randy Brown told the council last year — facile legal reasoning to avoid oversight: “It may not be the obligation of the City of Wichita to enforce the Kansas Open Records Act legally, but certainly morally you guys have that obligation. To keep something cloudy when it should be transparent I think is foolishness on the part of any public body, and a slap in the face of the citizens of Kansas. By every definition that we’ve discovered, organizations such as Go Wichita are subject to the Kansas Open Records Act.”

    But by framing open government as a legal issue — one that only lawyers can understand and decide — Wichita city government attempts to avoid criticism for their attitude towards citizens.

    It’s especially absurd for this reason: Even if we accept the city’s legal position that the city and its quasi-governmental taxpayer-funded are not required to fulfill records request, there’s nothing preventing from doing that — if they wanted to.

    In some ways, I understand the mayor, council members, and bureaucrats. Who wants to operate under increased oversight?

    What I don’t understand is the Wichita news media’s lack of interest in this matter. Representatives of all major outlets were present at the meeting.

    I also don’t understand what Council Member Lavonta Williams (district 1, northeast Wichita) suggested I do: “schmooze” with staff before asking for records. (That’s not my word, but a characterization of Williams’ suggestion made by another observer.)

    I and others who have made records requests of these quasi-governmental taxpayer-funded organizations have alleged no wrongdoing by them. But at some point, citizens will be justified in wondering whether there is something that needs to be kept secret.

    The actions of this city have been noticed by the Kansas Legislature. The city’s refusal to ask its tax-funded partners to recognize they are public agencies as defined in the Kansas Open Records Act is the impetus for corrective legislation that may be considered this year.

    Don’t let this new law be known as the “Wichita law.” Let’s not make Wichita an example for government secrecy over citizens’ right to know.

    Unfortunately, that bad example has already been set, led by the city’s mayor and city council.

  • Wichita voters’ opinion of city spending

    Wichita voters’ opinion of city spending

    As Wichita voters prepare to decide on the proposed one cent per dollar sales tax, a recent survey found that few voters believe the city spends efficiently.

    Wichita City Budget Cover, 1990In April Kansas Policy Institute commissioned SurveyUSA to conduct a scientific poll concerning current topics in Wichita. The press release from KPI, along with a link to the complete survey results, is available at Poll: Wichitans don’t want sales tax increase.

    The first question the survey asked was “In the past few years, have Wichita city officials used taxpayer money efficiently? Or inefficiently?” Following are the results for everyone, and then divided by political party and political ideology.

    Overall, 58 percent believe city spending was inefficient, compared to 28 percent believing spending was efficient.

    The results are surprisingly consistent. An exception is that political independents strongly believed that city spending was inefficient. Those identifying as liberal were more likely to say that city spending was inefficient.

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  • Moving Wichitans in the Future: Paving and Transit Via Sales Tax?

    From Kansas Policy Institute, the third and final free conference examining issues related to the proposed one cent per dollar Wichita sales tax. Voters will decide on this in November.

    Moving Wichitans in the Future: Paving and Transit Via Sales Tax?

    A free event on Thursday October 23, 2014 from 7:30 am to 11:00 am

    A review of the paving and transit portions of the proposed 1% sales tax in the City of Wichita.

    Full Agenda and Speaker Line-Up

    8:00 a.m. — Summary of Urban Transportation: Wendell Cox, author and international transportation consultant

    9:00 a.m. — Details of Wichita Plan: Alan King, director of Wichita Public Works, and Steve Spade, director of Wichita Transit

    10:00 a.m. — Reform Ideas From Around The Country: Len Gilroy, Director of Government Reform at the Reason Foundation

    KPI is not taking a position on the larger sales proposal or its component pieces. KPI is hosting these events featuring multiple expert opinions on the underlying policy pieces in an effort to present Wichitans with a variety of views. A July event covered the water proposal and the “jobs fund” was reviewed in September.

    The event will be held at the WSU MetroPlex, Room 185
    5015 E. 29th Street North

  • Water options for Wichita

    Water options for Wichita

    There are solutions to the Wichita water shortage (to the extent it exists) that originate outside city hall. Dr. Art Hall of KU explains in this excerpt from WichitaLiberty.TV. View below, or click here to view at YouTube. Originally broadcast September 28, 2014. For more on this topic see:

    Water, economic development discussed in Wichita and For Wichita leaders, novel alternatives on water not welcome.

  • Questions ‘Yes Wichita’ doesn’t want asked or answered

    Questions ‘Yes Wichita’ doesn’t want asked or answered

    “Yes Wichita” is a group that wants you to vote “Yes” on the proposed Wichita sales tax. But this group will not answer questions. Instead they delete the inconvenient questions.

    I’ve asked the “Yes Wichita” group several questions about the proposed one cent per dollar Wichita sales tax. They’re reasonable questions that many Wichita voters might like answered. But instead of answering the questions, “Yes Wichita” has deleted them from its Facebook page. Upon my inquiry as to why, there has been no answer.

    I realize these questions are inconvenient for the “Yes Wichita” group, and for the City of Wichita too. So I understand why these people did not answer my questions. Wichita voters may want to consider this indifferent attitude as they make their decision on this issue. Voter might also consider that there are questions the sales tax supporters don’t want asked, much less answered.

    Here are questions that I’ve asked that were never answered, and finally deleted. Perhaps you might want to submit them to “Yes Wichita” to see if you can get answers.

    October 7, 6:07am
    I have a question. The city’s documents regarding the sales tax state: “The State of Kansas estimates that 13% of sales taxes paid in the Wichita area are paid by non-residents based on a report at www.ksrevenue.org/pullfactor.html. This means that the City would collect an estimated $51.7 million in sales taxes (of the total $397.6 million)from non-residents.”

    But at the “Yes Wichita” website, there is a different claim: “If we fund a new water source through a sales tax instead of water bills or property taxes, visitors and tourists will pay the sales tax, reducing the burden of this cost to Wichitans by about one-third.”

    So which is it? 13 percent, or 33.3 percent? Why does “Yes Wichita” use a figure 2.5 times the city’s?

    October 3, 7:48pm
    I have a question regarding the proposed sales tax. Earlier this year the steering committee for the Wichita/Sedgwick County Community Investments Plan delivered a report to the Wichita City Council. The report says the city is delinquent in maintaining infrastructure. The report said the “cost to bring existing deficient infrastructure up to standards” is an additional $45 to $55 million per year. Does the proposed sales tax do anything to address this maintenance gap other than the portion earmarked for street repairs? Do you think the city will be asking for additional tax revenue to address the maintenance shortfall? If not, what is the city’s plan for catching up on infrastructure maintenance?

    October 2, 8:53pm
    I have a question. Can anyone tell me what the cost of the sales tax for an average family might be?

    September 22, 9:48pm
    I have a question. Jon Rolph disputed Jennifer Baysinger’s figures on the cost of the proposed sales tax for Wichita households. Is he or “Yes Wichita” willing to provide any figures or calculations as to what the cost might be, and the basis for Rolph’s disagreement?