April 8, 2008

Ordinance No. 080034
Enacting a new Section 68-475, continuing a 3/8% city sales tax for a period of 15 years for the purposes of developing, operating, maintaining, equipping and improving a bus, bus rapid transit, or similar system by the Kansas City Area Transportation Authority for Kansas City, Missouri, pursuant to Sections 94.600 through 94.655, RSMo.; providing for submission of this ordinance to the qualified voters of the City for their approval at a special election called for April 8, 2008, authorizing and directing the City Clerk to notify the responsible election authorities of this election; authorizing and directing the City Clerk to notify the Missouri Director of Revenue if the proposal is approved by the voters; and recognizing this ordinance to be an emergency measure.

The issue
How will revenue generated from the sales tax be used?
How much money will this tax generate?
What is the current state of the system and what will happen if the tax is not renewed?

The issue
On April 8, 2008, voters will be asked to consider a 15-year, 3/8-cent sales tax dedicated to the operation of The Metro bus service in Kansas City, Mo., which is managed by the Kansas City Area Transportation Authority. The tax only can be used in the operation of bus service.

How will revenue generated from the sales tax be used?
Revenue generated will provide the KCATA with a stable source of financing to help continue bus service until 2024. The revenue also enables the KCATA to engage in planning and service development actions afforded by the financial certainty of a 15-year tax extension.

How much money will this tax generate?
The tax will generate approximately $22 million per year (at today’s spending rates) for 15 years. The 3/8-cent sales tax funds nearly 30 percent of the KCATA’s annual budget and is an extension of the tax approved in 2003 by approximately 66 percent of voters.

What is the current state of the system and what will happen if the tax is not renewed?
In 2007, Kansas City’s buses traveled 11 million miles and provided more than 15 million trips; approximately 50,000 trips are made every weekday. Three-fourths of rides get people to work or school. Nearly 50 percent of bus riders have no other form of transportation. Without the renewal of this revenue, or identifying another way to generate the same funds, 40 to 50 percent of bus service in the city will have to be cut. This will result in less frequent service, reductions of weekend and evening service and the elimination of some routes and programs, which will be determined by the KCATA Board.