Voice For Liberty

Tag: Wichita Chamber of Commerce

  • ‘Yes Wichita’ co-chairs serve up contradicting plans for sales tax revenue

    ‘Yes Wichita’ co-chairs serve up contradicting plans for sales tax revenue

    At two forums on the proposed Wichita sales tax, leaders of the “Yes Wichita” group provided contradicting visions for plans for economic development spending, and for its oversight.

    On Tuesday the League of Women Voters — Wichita Metro sponsored a forum on the proposed one cent per dollar sales tax that appears on the November ballot. I appeared on behalf of the Coalition for a Better Wichita, a group that opposed the proposed sales tax. At the forum, a member of the audience wondered about whether proceeds of the sales tax would be given to Wichita State University. Speaking on behalf of “Yes Wichita,” one of its co-chairs Harvey Sorensen replied “there’s been no ask from Wichita State, there’s been no commitment to Wichita State.” When the questioner pushed back, Sorensen named several infrastructure needs of the WSU innovation campus that might be funded by sales tax revenue. Later, he said “there really have been no commitments” and challenged the questioner to “read me the data.” (For audio of this forum, click here.)

    The next day television station KCTU sponsored a debate in which I also participated. Michael Monteferrante represented “Yes Wichita.” He is a co-chair of that campaign. In response to a question, he said of the $80 million of sales tax dollars earmarked for economic development and jobs, “32 million dollars of it will be going to Wichita State University to work on fantastic training for our workforce. Another 32 million will go to just training some of the workforce in terms of our elimination of aerospace jobs. And just 16 million of the 80 million dollars will be going to retention and jobs and areas that will require the oversight that Mr. Weeks is talking about.” (For audio of this event, click here.)

    These two co-chairs of the “Yes Wichita” campaign offered contradictory answer to questions about the plans for the economic development aspect of the proposed sales tax. Coupled with Wichita’s hiring two weeks ago of a firm to form an economic development plan for Wichita, citizens are rightly concerned to doubt that the city has a plan for the sales tax.

    As far as the promised oversight, citizens might also be alarmed to learn of Monteferrante’s statement that only $16 million of the spending requires oversight.

  • Another Wichita sales tax forum

    Another Wichita sales tax forum

    On Wednesday October 29 KCTU Television held a televised debate on the issue of the proposed one cent per dollar Wichita sales tax. Michael Monteferrante represented “Yes Wichita.” He is a co-chair of that campaign. I represented Coalition for a Better Wichita, substituting for Jennifer Baysinger, who was not able to attend. R.J. Dickens was the moderator.

    This is the audio portion of the broadcast. It is about one hour in length. It represents the complete program.

  • Wichita sales tax forum

    Wichita sales tax forum

    Voice for Liberty Radio 150x150On Tuesday October 28 the League of Women Voters — Wichita Metro held a lunchtime forum on the issue of the proposed one cent per dollar Wichita sales tax. Harvey Sorensen and Moji Fanimokun represented “Yes Wichita.” Both are co-chairs of that campaign. I represented Coalition for a Better Wichita, substituting for Jennifer Baysinger, who was not able to attend. Paul Babich was the moderator.

    The audio presentation is about 53 minutes long. It represents the complete forum.

  • In Wichita, the public deserves and should demand answers

    Following, from Kansas Senator Michael O’Donnell, a discussion of issues surrounding the proposed Wichita one cent per dollar sales tax. O’Donnell served on the Wichita City Council for nearly two years before resigning to serve in the senate.

    Kansas Senator Michael O'Donnell
    Kansas Senator Michael O’Donnell
    We are less than one week from an incredibly important election cycle where those of us in Wichita will vote for our future in a 4, 5 or 6 year timeframe; Governor for 4, Sales tax for 5 and Senator for 6. Before we go to the polls, the Wichita City Council needs to level with the public and answer critical questions, if not, they continue the “politics-as-usual” game that has been exhaustingly prevalent during the all-too-disappointing Brewer administration. Is City Hall hoping to “run out the clock,” praying the public will become so disengaged with the election that somehow Wichitans will think the city has been straight-forward? Maybe I am being too critical, but it’s hard not to be critical when I experienced the “you can’t fight City Hall” realities directly. I saw first-hand how City Hall can be a barrier to quality of life instead of helping to enable it. Here are a list of 5 questions — one for each year of the tax — we need to have answered (and should have had answered long ago):

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  • Proposed Wichita sales tax won’t satisfy needs, appetites

    The proposed Wichita sales tax does little to address the city’s delinquent infrastructure maintenance gap. Despite this, there are rumors of another sales tax next year for quality of life items.

    Earlier this year the steering committee for the Wichita/Sedgwick County Community Investments Plan delivered a report to the Wichita City Council. The report contains facts that are relevant to the proposed Wichita one cent per dollar sales tax. Voters will decide on this in November.

    Community Investments Plan document, February 2014
    Community Investments Plan document, February 2014. Click for larger version.
    The most important thing Wichita voters need to know that the city is delinquent in maintaining the assets that taxpayers have purchased. The cost to remedy this lack of maintenance is substantial. On an annual basis, Wichita needs to spend $180 million on infrastructure depreciation/replacement costs. Currently the city spends $78 million on this, the presentation indicates.

    The “cost to bring existing deficient infrastructure up to standards” is given as an additional $45 to $55 million per year.

    How does this relate to the proposed sales tax? Of the funds the sales tax is projected to raise over five years, $27.8 million is allocated for street maintenance and repairs. That’s $5.6 million per year.

    Wichita/Sedgwick County Community Investment PlanSubtract that from what the Community Investments Plan says we need to spend on deficient infrastructure, and we’re left with (roughly) $40 to $50 million per year in additional spending on deficient infrastructure. Remember, that’s on top of ongoing infrastructure depreciation/replacement costs.

    Does the proposed sales tax do anything to address those needs? Possibly. Part of the sales tax would be used to augment the large water pipeline from the Equus Beds. That pipeline is 60 years old, but there is no indication that it needs replacement. But other than that, the proposed sales tax does not address deficient maintenance.

    What will the city do about this deficiency? Is it likely that Wichitans will be asked to provide additional tax revenue to address the city’s deficient infrastructure? So far, city hall hasn’t asked for that, except for recommending that Wichita voters approve $5.6 million per year for streets from a sales tax.

    But if we believe the numbers in the Community Investments Plan, we should be prepared for city hall to ask for much more tax revenue. That is, if the city is to adequately maintain the things that taxpayers have paid to provide.

    Besides this maintenance backlog, there are other calls for new city spending.

    Wichita has unmet maintenance requirements, and many wants on top of that.
    Wichita has unmet maintenance requirements, and many wants on top of that.
    Earlier this year the city council considered various proposals for spending a new source of tax money. Four survived the discussion and will be the recipient of sales tax funds, if Wichita voters approve. Those needs are a new water supply, jobs and economic development, transit, and street maintenance and repair.

    There were proposals that did not make the, generally in the category of “quality of life” facilities. These include a new convention center, new performing arts center, new central library, newly renovated Lawrence-Dumont Stadium, renovation of the Dunbar Theater, renovation of O.J. Watson Park, and help for the homeless.

    Evidently there are many who are not happy that these proposals will not receive sales tax money. Rumors afloat that groups — including city officials — are plotting for another sales tax increase to fund these items.

    People are rightly concerned that even though the proposed Wichita sales tax ordinance specifies an end to the tax in five years, these taxes have a way of continuing. The State of Kansas recently had a temporary sales tax. It went away, but only partly. The Kansas state sales tax rate we pay today is higher than it was before the start of the “temporary” sales tax.

    But the people who want to spend your tax dollars on these “quality of life” items aren’t content to wait five years for the proposed sales tax to end before asking for their share of sales tax revenue. They are plotting to have it start perhaps one year from now.

    These are things that Wichita voters need to consider: There is a backlog of maintenance, and there is appetite for more tax revenue so there may be more government spending. Even if the sales tax passes, these remain unfulfilled.

  • To pay for a new Wichita water supply, are there other choices?

    To pay for a new Wichita water supply, the city gives voters two choices. Either (a) vote for a sales tax, or (b) the city will issue long-term debt and the city will have to pay an additional $221 million in interest expense.

    Are there alternatives, such as raising the funds through water bills over the same five-year period as the proposed sales tax? Would this let commercial and industrial water users participate in the costs of a new water supply?

    In this excerpt from a water town hall meeting, Wichita Director of Public Works Alan King responds. View below, or click here to view at YouTube.

  • What is the purpose of a new Wichita water supply?

    What is Wichita gaining with a new water supply? Is a new supply needed for basic uses such as household, commercial, and industrial? At a town hall meeting on water issues, Wichita Director of Public Works Alan King explains.

    The expansion of the Aquifer Storage and Recovery project, or ASR, is the largest planned use of the proposed one cent per dollar Wichita sales tax.

    Of note, the proposed water supply provides protection for what is called a one percent drought. There is debate as to whether the city should prepare for a two percent drought instead.

    View a video excerpt of the meeting below, or click here to view at YouTube.

  • Has the Wichita ASR system proven its worth in production?

    Last week the City of Wichita held a town hall meeting on water issues. The issue is ripe because the city has placed a one cent per dollar sales tax on the November ballot. The largest share of the revenue, 63 percent, is earmarked for expansion of the Aquifer Storage and Recovery project, or ASR.

    I appeared at the meeting and expressed my concerns regarding things I had recently learned, which is that we’ve cut expectations for ASR production in half. Also, ASR is still in commissioning stage.

    Alan King, Director of Public Works for the City of Wichita, said the individual components of the ASR systems have been tested, and that the tests have been successful. He confirmed that the original estimates of production were too high.

    We also learned that there have been days where there was sufficient water in the Little Arkansas River to draw from it, but that sometimes the levels of bromide or atrazine have been too high, and the water could not be used.

    View a video excerpt of the meeting below, or click here to view at YouTube.

  • Examining claims in favor of the proposed Wichita sales tax

    Examining claims in favor of the proposed Wichita sales tax

    In an advertisement in the Wichita Eagle and in a mailer sent to Wichita voters, the “Yes Wichita” group makes a series of statements regarding plans for a new water supply. It’s important that Wichita voters be aware of the complete facts and context of these claims so that they make an informed decision on how to vote.

    The city has proposed a one cent per dollar sales tax. The largest portion — 63 percent or $250 million — is earmarked for a new water supply. Voters will see this question on the ballots for the November 4, 2014 election.

    Advertisement from "Yes Wichita."
    Advertisement from “Yes Wichita.” Click for larger version.
    Here’s what the “Yes Wichita” group has stated under the heading “The Plan For Affordable Long-term Water Supply” along with what voters also need to know.

    Save taxpayers $221 million over 20 years in costs. This statement is true only if the Wichita city council decides to pay for ASR expansion by using long-term debt. That decision has not been made. Besides that, there are other ways to raise this money. And if using debt for water projects is bad, why did the city borrow over $200 million for the current ASR project, and hundreds of millions for other water projects? See By threatening an unwise alternative, Wichita campaigns for the sales tax.

    Wichita Water Supply Plan Capital Costs
    Wichita Water Supply Plan Capital Costs
    Replace 60 year old aging pipelines so water is transported safely. The sales tax plan for water calls for the augmentation of one pipe, as shown in the city’s plan. Not replacing pipes plural, as this advertisement indicates. Plus, the pipe that is the subject of the city’s water plan is 60 years old, but there is no indication that it needs replacement.

    Tourists, visitors and renters help pay for our water. This is true. It is also true that if funds were raised through higher water bills, these people would also pay. Also, city 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.” 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.” Which is it? 13 percent, or 33 percent? Will “Yes Wichita” show us their figures or provide a reference for the basis of this claim?

    Prevent future high water rate increases. This is true. If we experience a prolonged drought, water rates would have to rise to cover the fixed costs of the water utility. That is, if we have such a drought. That may not happen, or it may not happen for many years.

    Fund ASR improvements which would provide new wells and a water storage site. This is true. What’s left is to decide whether making these additional investments in the ASR project is wise. We’ve learned that the expectations of ASR have been cut in half. We’ve learned that the ASR project is still in its commissioning phase, and it has not been turned loose for actual production for any significant period. I do not believe we have enough knowledge and experience to judge the success or failure of ASR. See Should Wichita expand a water system that is still in commissioning stage?