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State Legislative Priorities

Summary of 2008 Priority Legislative Initiatives

  1. Comprehensive Transportation Program* - The City strongly supports efforts to take a strategic and long-term approach to developing the State's next comprehensive highway funding program formula that includes additional and reasonable weighting for economic development activity, job creation and State revenue enhancement from future projects.  The City supports consideration of separating highway funds to include a fund dedicated toward new infrastructure projects.

  2. Impact Fees/Excise Taxes - As Kansas' fastest growing major city, the City opposes efforts to further undermine how new infrastructure is funded through excise taxes and impact fees.  The City has and continues to use excise taxes to directly finance infrastructure projects supporting new developments.  Should that tool no longer be available, the City would have no choice but to either slow growth in Kansas or pass the cost along to current taxpayers.
  3. State Aid* - The City supports honoring the Legislature's commitment to restore Local Ad Valium Tax Relief (LAVTR/Demand Transfers) at statutorily required levels, and opposes further reduction in sharing of other state tax revenue with units of local government.  The Kansas Expanded Lottery Gaming Act passed in the 2007 Legislative Session contains provisions directing that the State's portion of the expanded gaming revenue be used in part to restore the LAVTR.
  4. Municipal Budget Calendar - The City supports legislation that would extend the statutory timetable for municipal budget preparation, publication, hearing, adoption, and certification by at least 30 days so that accurate assessed valuation information is available.
  5. Eminent Domain - The City opposes efforts to undermine the responsible use of this essential tool to foster economic development, improve blighted neighborhoods, revitalize economically stagnant areas, and provide public infrastructure.
  6. Property Tax Relief* - The City does not oppose legislation directed toward property tax relief such as limiting appraised valuation growth if such action does not impact local units of government revenue. The City believes any impacts of state legislative property tax relief should be incurred entirely by the State and that locally elected leaders should retain the ability to raise or lower local taxes.
  7. Right of Way Management* - The City supports the continued authority of cities to control the use of public property and right of way, including the ability to franchise entities that utilize the public right of way.

 

Summary of Standing Legislative Positions

  1. Employer-Employee Relations* - The City opposes legislation that would eliminate the local option provision in the Kansas Public Employer-Employee Relations Act (PEERA).
  2. Legal Notice Publication - The City supports legislation to allow for electronic posting of legal notices. State law requires local governments to publish legal notices in each jurisdiction's publication of record. As a result, there are considerable costs to taxpayers. (Olathe spends over $60,000 annually.) Based on surveys in Olathe, over 78% of residents have access to the Internet, while relatively few subscribe to the local paper. Allowing for posting of legal notices on the City's website not only allows for more residents to have easy access to the information but results in considerable tax dollar savings. As a final consideration, information on the website is free, while residents must purchase newspapers.
  3. Kansas Open Records and Open Meetings Act* - The City fully supports open and transparent government. However, the City recognizes there are circumstances the public is better served by preventing the disclosure of sensitive information. That includes instances where cities could be placed in a disadvantaged situation in negotiations or the legal processes or expose the city to unnecessary civil liability.
  4. Annexation - The City opposes efforts that limit local units of government's abilities to responsibly grow in well planned ways that ensures a high quality of life and sound economic practices.
  5. Home Rule Authority - The City opposes legislation that would directly or indirectly limit the constitutionally granted home rule authority of cities.
  6. Mandates - The City opposes legislation that imposes additional state mandated functions, activities, or practices on units of local government without the funding required for compliance.
  7. Kansas Water Authority Membership - The City supports legislation thatwould increase the membership ofthe Kansas Water Authorityto includerepresentation from the three river water assurance districts.
  8. Property Tax Abatement - The City opposes legislation that would restrict municipal governing body discretion in the use of this economic development tool.
  9. Municipal Finance - The City supports legislation that preserves existing municipal revenue sources, or provides authority for local option municipal revenue enhancement. Conversely, the City opposes legislation that erodes municipal revenue sources.
  10. Alcohol and CMB Regulation - The City supports the continued authority of cities to license and regulate establishments where alcoholic liquor or cereal malt beverage is sold or consumed.
  11. KPERS - The City supports legislation that enhances retirement options and benefits for public employees under KPERS and KP&F.
  12. Worker's Compensation - The City supports legislation that clarifies current law relating to pre-existing conditions and separation from employment.
  13. STAR Bonds - The City supports the continued use of state STAR Bonds as an economic development tool for major projects of statewide significance.
  14. "One-Call" Mandates - The City opposes legislation requiring all municipal water and sewer services to participate in the "One-Call" program. This presents a significant cost burden on local utilities. Water and sewer utilities do not present the hazards of electrical utilities, and Olathe has experienced very few problems caused by digging near lines. The City supports continued voluntary participation.

 

Reauthorization of the State Highway Bill
The City's 2008 number one priority relates to the development of the State's next highway bill; in particular, the formula as it relates to economic development and creates a second pot of money for economic development or new projects.  The City strongly believes a greater emphasis or weight should be given in prioritizing projects that lead directly to the creation of jobs and new revenue for Kansas.  The City believes previous weightings have been primarily reactive without a forward thinking approach to future traffic issues and opportunities.

Background:  Despite having received some of the highest scores for economic development in the System Enhancement Program (SEP) assessment formula, Olathe's major transportation projects received no funding from the program.  One of those projects will lead to a conservative estimate of 5,000 new jobs for Kansas and hundreds of millions of dollars in private investment.  With plans now in place for the project, this investment is already beginning to happen.

Though the SEP weighing system does take economic development into account, any gains in scoring are offset by the fact that the projects are addressing future traffic rather than current traffic conditions.  Future traffic is not a factor in the formula.

In addition, the current KDOT priority funding formula does not take economic development into account in determining the allocation of funds.

Position:  As the new highway bill is being considered, it is critical that job and revenue creation be considered as major priority.  It should be a top tier criteria for transportation project prioritization or have additional priority weight value assigned.  In addition, future traffic volume should be a major consideration in the priority weighting of projects under consideration for System Enhancement Program funding.

 

Excise Taxes
Background:  Over the course of the last several legislative sessions and, during the most recent Joint Committee on Tax meeting, the issue of local use of excise taxes has been discussed.

As Kansas' most rapidly growing city, Olathe works hard to avoid laying the cost of that growth at the feet of current taxpayers.  The City believes growth should pay for itself as much as reasonably possible, and excise taxes are a critical tool to ensure the costs are being born by those who benefit.

Position:  The City opposes any effort to further restrict local governments' ability to levy excise tax as a way to pay for growth.

 

Annexation
Background:  As cities grow, it is essential that they continue having the ability to annex property.  Such annexation allows for adequate planning for infrastructure and services and well-planned orderly growth.  Annexation is essential to preserving growing areas' quality of life and well being of the entire region.  Cities' ability to grow has a direct impact on Kansas' economic growth, and undermining cities' ability to annex will have a corresponding impact on Kansas' economy. 

Position:  The City of Olathe continues to use annexation responsibly and appropriately and strongly opposes legislative efforts to undermine this critical tool.  Annexation has been essential to creating Olathe's burgeoning economy and the revenues it is creating for the entire State.

 

State Aid
Background:  Representing the fiscal partnership between the State of Kansas and local government, historically there have been three "demand transfers" within the annual state budget from the state general fund to cities, counties, and other units of government.  These programs are the Local Ad Valorem Tax Reduction fund (LAVTR), the City-County Revenue Sharing fund (CCRS), and the Special City-County Highway fund (SCCH).  The first two programs were based on a statutory formula to transfer a portion of state sales tax revenue to local government.  The latter program represents a transfer of state motor carrier property tax to the Motor Fuel fund.

The LAVTR and CCRS transfers are used to reduce the city property tax, while the SCCH transfer supplements the Motor Fuel fund transfer which supports road maintenance work.  The City recognizes that a portion of this revenue is planned to be returned in the future, and hopes that commitment is honored.

The Kansas Expanded Lottery Gaming Act passed in the 2007 legislative session contains provisions that direct the State's portion of the expanded gaming revenue be used in part to restore the LAVTR.

Position:  Since the early 1990's, the Legislature annually imposed artificial growth caps on these demand transfer programs during the state budget process.  With this action, cities and counties took a highly disproportionate share of cuts compared to most other state expenditures.  Without better alternatives, many units were forced to raise local property taxes to compensate.

The City supports legislative relief efforts, but wants assurance that revenue will actually be permanently returned at the statutory levels.  The City supports restoration of the demand transfer programs at their statutory levels.

 

Municipal Budget Calendar
Background:  Statutes governing the timetable for 1) property valuation; 2) the process for preparation, publication, hearing, adoption, and certification of municipal budgets; and 3) distribution of bills and collection of property taxes date back to pre-nineteenth century Kansas.  The statutes and procedures have remained relatively static, despite the monumental advances through the years with information technology.  Given the current timetable, local units of government must certify annual budgets to county officials in August long before final assessed valuation figures are available.  This leads to uncertainty and inaccuracy in the budgeting process.

Position:  The City recognizes the property valuation process is complex and involves multiple jurisdictions.  The City also recognizes that time must be built into the process for taxpayer valuation appeals, and that appeals will always affect the final valuation figures.  However, in this age of technology, the city supports revisions to the budget calendar that would extend the date for certification by at least 30 days.  This would allow more accurate budgeting and better serve the interests of citizens.  If the legislature desired, this change could be made applicable to larger counties only.

The City encourages the legislature to conduct a comprehensive review of the property tax/budget calendar and recommend changes that would modernize the process.

 

Eminent Domain
Background:  Eminent domain has been an essential tool for local governments to secure property for infrastructure.  As local units of government are largely responsible for economic development and job creation, responsible use of eminent domain has been used as a tool for the development of major projects, revitalization of blighted neighborhoods and breathing life into economically stagnant areas.

Position:  The City of Olathe has always used eminent domain judiciously and responsibly.  The City has never used eminent domain to give property to private parties for economic development purposes.  In cases where eminent domain has been applied, there have been true rewards benefiting the entire community through public infrastructure improvement.  While the City believes it is always paramount to be respectful of individual property rights, the City also believes it is important to create a climate that allows for job creation and an increased tax base for local and state governments and Kansas schools.

In addition, the City feels any efforts to limit eminent domain will have consequences on local units of governments to undertake public improvements.

The City strongly opposes undermining this essential tool.  The City feels limiting eminent domain for economic development will significantly impact efforts to bring jobs to Kansas and keep taxes low.  Denying local units of government this tool will be terribly detrimental, especially to those that use it responsibly.