Governing Body — Topeka, KS
Date: 2024-12-06

Governing Body Budget Retreat 1717
 SW Topeka Boulevard Topeka KS 66612
 https://www.topeka.org




 Governing Body Agenda
 December 6, 2024
 9:00 AM

 Mayor: Michael A. Padilla
 Councilmembers
Karen A. Hiller District No. 1 Marcus D.L. Miller District No. 6
Christina Valdivia-Alcala District No. 2 Neil Dobler District No. 7
Sylvia E. Ortiz District No. 3 Spencer Duncan District No. 8
David Banks District No. 4 Michelle Hoferer District No. 9
Brett D. Kell District No. 5
 City Manager: Dr. Robert M. Perez
CALL TO ORDER:
1. ROLL CALL:
2. NON-ACTION ITEMS:
 A. Governing Body Budget Retreat

 A Special Meeting Budget Retreat of the Governing Body has been called by City Manager Dr. Robert
 M. Perez on December 6, 2024, from 9:00 A.M to 5:00 P.M. at the Hotel Topeka City Center Emerald
 Ballroom, 1717 SE Topeka Boulevard, Topeka, to discuss budget items. If necessary, the Governing
 Body may recess into executive session under applicable exemptions as allowed by K.S.A.
 75-4319(b).

 The meeting will not be televised due to technical difficulties and there will be no public
 comment allowed at the meeting. Written comments may be submitted via email to
 cclerk@topeka.org or delivered in-person to the City Clerk’s Office located at 215 SE 7th
 Street, City Hall Basement Room 012B, Topeka, Kansas.

3. ADJOURNMENT:
 City of Topeka
 Council Action Form
 Council Chambers
 214 SE 8th Street
 Topeka, Kansas 66603
 www.topeka.org
 December 6, 2024


DATE: December 6, 2024
CONTACT PERSON: Dr. Robert M. Perez, DOCUMENT #:
 City Manager
SECOND PARTY/SUBJECT: 2024 Governing Body PROJECT #:
 Budget Retreat
CATEGORY/SUBCATEGORY
CIP PROJECT: No
ACTION OF COUNCIL: JOURNAL #:
 PAGE #:

DOCUMENT DESCRIPTION:

A Special Meeting Budget Retreat of the Governing Body has been called by City Manager Dr. Robert M. Perez
on December 6, 2024, from 9:00 A.M to 5:00 P.M. at the Hotel Topeka City Center Emerald Ballroom, 1717 SE
Topeka Boulevard, Topeka, to discuss budget items. If necessary, the Governing Body may recess into
executive session under applicable exemptions as allowed by K.S.A. 75-4319(b).

The meeting will not be televised due to technical difficulties and there will be no public comment
allowed at the meeting. Written comments may be submitted via email to cclerk@topeka.org or delivered
in-person to the City Clerk’s Office located at 215 SE 7th Street, City Hall Basement Room 012B,
Topeka, Kansas.

VOTING REQUIREMENTS:
POLICY ISSUE:
STAFF RECOMMENDATION:
BACKGROUND:
BUDGETARY IMPACT:
SOURCE OF FUNDING:

ATTACHMENTS:
Description
Dec 6 2024 Special Meeting Notice
Parking Presentation
Budget Presentation
Economic Development Tools Presentation
 City Clerk Brenda Younger, M.M.C.
 City Hall, 215 SE 7th Street, Room 166 785-368-3940
 Topeka, KS 66603 Email: byounger@topeka.org
 www.topeka.org



 Special Meeting Notice
 Governing Body Budget Retreat
A Special Meeting Budget Retreat of the Governing Body has been called by City Manager Dr. Robert
M. Perez on December 6, 2024, to discuss budget items. If necessary, the Governing Body may recess
into executive session under applicable exemptions as allowed by K.S.A. 75-4319(b). The meeting will
not be televised due to technical difficulties and there will be no public comment allowed at the
meeting. Written comments may be submitted via email to cclerk@topeka.org or delivered in-person
to the City Clerk’s Office located at 215 SE 7th Street, City Hall Basement Room 012B, Topeka,
Kansas.

DATE: December 6, 2024
TIME: 9:00 a.m. to 5:00 p.m. with a lunch break from 12:00 p.m. – 1:30 p.m.
LOCATION: Hotel Topeka at City Center – Emerald Ballroom
 1717 SW Topeka Boulevard
 Topeka KS 66612

AGENDA: (1) Call to Order
 (2) Roll Call
 (3) Budget Items. If necessary, the Governing Body may recess into executive
 session under applicable exemptions as allowed by K.S.A. 75-4319(b).
 (4) Adjournment

SUBJECT: Governing Body Budget Retreat. If necessary, the Governing Body may recess into
executive session under applicable exemptions as allowed by K.S.A. 75-4319(b).

Contact: Brenda Younger, City Clerk
 785-368-3940 or 785-368-3941
 cclerk@topeka.org
Downtown Parking
 Budget Retreat
 December 6, 2024
Downtown Parking Update 2


• Approval was given in November Location Cost (Inflation Adjusted)
 2022 to make capital improvements
 to parking facilities Townsite $4,552,965
• The following types of repairs are Uptowner $7,567,394
 scheduled from 2023 to 2026: 512 Jackson $1,550,882
 • Structural Centre City $840,944
 • Waterproofing
 Coronado $1,967,637
 • Mechanical
 • Plumbing Crosby $1,132,502
 • Electrical Ninth Street $3,135,349
 • Fire Protection Park ‘N Shop $1,489,120
 • Façade Totals $22,236,792
• Cost are estimates and
 subject to change
Downtown Parking Update 3


• Rate structure was revised in November 2022 to establish/minimum and
 maximum rates
 • Only 2 rates were changed, citations and hoods, remaining rates have been
 unchanged since 2010.
 • Practice of 1st time warning for out of county/state citations was discontinued
 Term Min Max Current
 Parking Lots Month $ 15.00 $ 80.00 $ 18.00-45.00
 Parking Garages Month $ 40.00 $ 120.00 $ 67.75
 Hourly Hour $ 0.50 $ 3.00 $ 1.00
 On Street
 On Street Meter Hour $ 0.50 $ 3.00 $ 1.00 (0.50 10 HR)
 10 Hour Meter Permit Month $ 44.00 $ 65.00 $ 44.00
 Meter Hood Day $ 6.00 $ 30.00 $ 20.00 (30.00 Ks Ave)
 Fines
 1st Offense Each $ 8.00 $ 20.00 $ 10.00
 2nd Offense Each $ 15.00 $ 40.00 $ 20.00
Downtown Parking Current Issues 4


• Current zones are confusing and inconsistent
• Current policies encourage leapfrogging
• On street reserved spaces are not permitted for food trucks or
 similar vendors
• Revenue at current rate structure does not meet annual expenses
Downtown Parking - Simplification 5



• Different Colors on the map
 represent a different rule
• Multiple types of parking,
 timed zones, paid zones,
 sometimes within the same
 block
• Timed zones have different
 time limits
• Metered areas have different
 prices or different allowable
 lengths of stay
Downtown Parking – Simplification Recommendation 6


• Eliminate 24 meters on 10th Street west of Topeka Blvd.
• Convert all 1 hour meters to 2 hour meters.
• Convert all 1 hour zones to 2 hour zones.
• Convert all 3 hour zones to 4 hour zones.
• Relax parking north of 5th street on Kansas and north of 6th street on
 other streets.
 • Primarily 4 hour zones to discourage all day occupancy, but reduced
 patrolling unless notified of issues.
Downtown Parking - Leapfrogging 7


• Current code prohibits people
 moving from block to block within
 the KS Avenue block zone
• Municipal Code 10.60.320 “On
 Kansas Avenue, between 6th Street
 and 10th Street, the allowable time
 for parking a vehicle shall terminate
 when the posted time has expired.
 Vehicles are not allowed to move
 to another parking space on
 Kansas Avenue between 6th Street
 and 10th Street on the same
 calendar date.”
Downtown Parking – Leapfrogging Recommendation 8


• Eliminate all 1 hour zones
• Add following language
 • “Within Downtown Business District, when parking in an unpaid,
 timed zone, the allowable time for parking a vehicle will
 terminate when the posted time has expired. Vehicles are not
 allowed to move to another unpaid, timed zone within the
 Downtown Business District on the same calendar date.”
• One free unpaid session per enforcement day (8:00 am to
  6:00 pm) if after 2 hours you remain in the Downtown
  Business District, you would need to move to a paid space
  or parking garage, or be subject to a citation.
 Downtown Parking: Reserved Space 9


• On street hoods are currently only allowed under the
  following circumstances: (10.60.220 b)
 • 11 allowable circumstances falling into 3 major categories
 • Government agencies
 • Moving/Demolition/Construction where there is a need for adjacent
 parking
 • Funeral Services
 Downtown Parking: Meter Hoods Recommendation 10

• No permissible use for food trucks or other vendors in a for profit
 use case
• Advantages/Disadvantages
 • Food trucks and other vendors contribute to the overall downtown
 experience
 • Existing vendors/restaurants could be disadvantaged by their presence
• Recommendation, adopt following language under 10.60.220 b
 • (12) Persons/agencies or businesses with a physical address in the
 Downtown Business District are permitted to reserve space contiguous to
 their business for the purpose of sales/vending consistent with their business
 needs. The space may not be continuously occupied for more than 10
 consecutive hours. Sale or lease to a 3rd party within City ROW is
 prohibited.”
• An invitation is required, but cannot be sold, and cannot be a
 permanent arrangement
 • Employee appreciation events allowed, tent would be allowed, but must
 be removed daily.
 Downtown Parking: Current Rate Structure 11


• Estimated 2024 loss of ($415,965)
• 2025 Budgeted loss of ($454,775)
• Current forecast would deplete the parking reserve fund
  in 2027
 • Increase revenue through change in pricing structure
 • Reduce expenses through reductions in maintenance and
 service
 • Subsidize parking from other revenue sources
Downtown Parking: Rate Structure Recommendation 12


• Increase Parking Garage Rate from $67.75 to $74.00
• Establish price parity across meters
• Establish price parity between on street permits and
  garage permits

 Term Current Min Max Target
 Parking Garages Month $ 67.75 $ 60.00 $ 105.00 $ 74.00
 On Street
 On Street Meter Hour $ 1.00 $ 0.50 $ 3.00 $ 1.00
 On Street Meter (10 Hr) Hour $ 0.50 $ 0.50 $ 3.00 $ 1.00
 10 Hour Meter Permit Month $ 44.00 $ 44.00 $ 65.00 $ 74.00
Downtown Parking: Rate Structure Recommendation 13


• Phased price increase as additional improvements are
  made.
 • Implement 10% price increase with garage improvements
 being made over next 2 years
 • 3% inflationary increases beginning in 2026
 • Price changes every 3 years thereafter



• Estimated additional revenue of $162,612 at current
  occupancy with price increase.
Downtown Parking: Rate Structure Recommendation 14



 Current Proposed 2026 2029 2032
 Standard Garage Parking $67.75 $74.00 $81.00 $89.00 $97.00
 Reserved Garage Parking $75.50 $95.00 $104.00 $114.00 $125.00
 9th Street Garage $47.43 $51.00 $56.00 $62.00 $65.00
 Premium Lot $45.00 $45.00 $49.00 $54.00 $59.00
 Outer Lot $18.00 $18.00 $20.00 $22.00 $25.00
 10 Hour Permit $44.00 $74.00 $81.00 $89.00 $97.00
Downtown Parking: Rate Structure Recommendation 15


• Implement paid parking of $1.25 per hour on Kansas Avenue
• Restore $1.00 per hour parking on 100 block East and West of
  Kansas Avenue
 • 3 month timeline for KS Avenue paid parking implementation. Lead time of
 pay stations and public awareness campaign.
 • Future plans are to remove physical meters to then transition to payment by
 pay station or app.
• Estimated Revenue for additional on street parking
 • $250,000 annually from Kansas Avenue
 • $100,000 annually from 100 blocks East and West of Kansas Avenue
• In combination with other price increases, total revenue would
  increase $512,612 covering the $454,775 budgeted shortfall
Downtown Parking: Recommendation Recap 16


• Consolidate zones and times, relax policies in underutilized areas
• Add language to code clarifying 1 free session per day
• Add additional circumstance to space reservations to include for
 profit sales (food trucks/vendors)
• Increase Parking Garage Rate from $67.75 to $74.00
• Establish price parity across meters
• Establish price parity between on street permits and garage
 permits
• Implement paid parking of $1.25 per hour on Kansas Avenue
• Restore $1.00 per hour parking on 100 block East and West of
 Kansas Avenue
City of Topeka Budget
  2026 Overview 12/6/2024
  General Fund Revenue Summary 2

Revenue Types 2023 Actuals 2024 Budget 2024 Projected 2025 Budget 2026 Projected 2027 Projected % of Revenue
Sales Tax $ 39,013,156 $42,082,474 $ 39,904,651 $ 40,569,000 $ 41,693,975 $ 42,207,988 34.94%
Ad Valorem Tax $ 35,597,172 $34,956,561 $ 36,296,391 $ 38,251,392 $ 40,157,878 $ 41,764,193 33.66%
Franchise Fees $ 15,228,457 $17,684,415 $ 14,603,731 $ 14,331,161 $ 14,474,473 $ 14,763,962 12.13%
PILOTS $ 7,930,388 $5,907,664 $ 5,968,061 $ 5,937,664  $ 5,937,664 $ 5,937,664 4.98%
Administration Fees $ 4,378,649 $4,110,068 $ 4,363,213 $ 4,426,854  $ 4,426,854 $ 4,648,197 3.71%
Motor Vehicle $ 3,201,631 $3,327,645 $ 3,440,121 $ 3,309,405  $ 3,342,499 $ 3,409,349 2.80%
Inter-Gov Revenue $ 1,447,474 $550,000 $ 1,462,877 $ 1,492,050  $ 1,536,812 $ 1,582,916 1.29%
Licenses & Permits $ 1,719,408 $1,236,488 $ 1,796,619 $ 1,781,757  $ 1,870,845 $ 1,964,387 1.57%
Fines $ 1,233,003 $1,441,068 $ 1,083,840 $ 1,275,000  $ 1,275,000 $ 1,275,000 1.07%
Investments from Interest $ 4,761,336 $1,235,000 $ 2,693,508 $ 4,335,000  $ 3,500,000 $ 3,500,000 2.93%
Municipal Court $ 510,974 $314,111 $ 460,721 $ 537,250 $ 450,000 $ 450,000 0.38%
Miscellaneous $ 604,951 $488,150 $ 512,891 $ 312,896 $ 350,000 $ 350,000 0.29%
Special Assessments $ 273,444 $297,500 $ 269,089 $ 340,000 $ 300,000 $ 300,000 0.25%
Total Revenues $ 115,900,043 $113,631,143  $112,855,712 $ 116,899,429 $ 119,316,000 $ 122,153,656 100.00%
 General Fund Expense Summary 3


Expense Types 2023 Actuals 2024 Budget 2024 Projected 2025 Budget 2026 Projected 2027 Projected % of Expenses
Personnel $80,484,535 $87,945,650 $84,956,681 $96,791,773 $105,089,985 $110,365,212 76.38%
Contractual $19,834,924 $21,160,129 $22,927,105 $25,137,227 $25,543,309 $25,819,390 18.85%
Commodities $3,611,597 $3,419,832 $4,489,484 $4,225,719 $4,725,719 $5,382,491 3.86%
Other Payments $10,994,307 $1,600,000 $1,603,020 $232,100 $152,100 $152,100 0.11%
Capital Outlay $881,250 $697,803 $717,356 $1,184,166 $1,184,166 $1,200,000 0.87%
Debt $200,494 $183,583 $183,427 $0 $0 $0 0.00%

Total Expenses $116,007,107 $115,006,113 $114,877,073 $127,570,985 $136,695,279 $142,919,193 100.00%
  General Fund Department Expense Summary 4


  Department Search 2023 Actuals 2024 Budget 2024 Projected 2025 Budget 2026 Projected 2027 Projected % of Expenses
Police $42,942,799 $47,392,888 $44,900,305 $54,500,454 $58,140,827 $61,049,284 42.91%
Fire $32,881,490 $36,003,280 $35,579,157 $38,861,953 $40,931,578 $42,921,834 30.21%
Public Works $6,790,654 $8,335,471 $7,756,997 $8,350,044 $8,641,160 $8,907,040 6.38%
Misc. Non – Dept* $5,032,312 $4,083,688 $8,771,123 $4,428,651 $6,674,408 $6,937,013 4.04%
Planning $2,749,575 $3,838,884 $3,670,775 $4,290,574 $4,465,668 $4,638,039 3.30%
City Manager $1,784,926 $2,443,303 $2,193,160 $3,459,586 $3,604,474 $3,760,916 2.66%
Financial Services $14,764,499 $3,142,881 $3,030,346 $3,357,201 $3,501,728 $3,645,984 2.58%
Code Enforcement $2,374,631 $2,484,187 $2,249,585 $2,756,543 $2,846,369 $2,914,441 2.10%
Municipal Court $1,700,440 $2,097,035 $1,856,303 $2,166,016 $2,258,177 $2,339,896 1.67%
Human Resources $1,546,103 $2,158,261 $1,830,699 $2,137,216 $2,206,579 $2,279,234 1.63%
City Attorney $1,403,471 $1,743,962 $1,602,293 $1,817,470 $1,958,688 $2,042,321 1.45%
Pass-Through Tax $723,737 $720,534 $723,997 $746,025 $746,025 $746,025 0.55%
City Council $363,489 $391,897 $434,172 $509,113 $520,989 $533,447 0.38%
Mayor's Office $148,087 $170,727 $166,675 $190,139 $198,608 $203,719 0.15%
Zoo $800,894 $0 $111,486 $0 $0 $0 0.00%
Totals $116,007,107 $115,006,998 $114,877,073 $127,570,985 $136,695,279 $142,919,193 100.00%
Miscellaneous Non-Departmental 2026 Breakdown 5


 Major Discretionary Expenses 2026 Projected Major Fixed Expenses 2026 Projected
Social Service Grants $752,500 Hotel Operating Expenses $960,000
Property Tax Rebate $300,000 SNCO Inmate Cost $1,250,000
TPAC $150,000 Tyler ERP Fees $700,000
Downtown Topeka $150,000 Lawson $450,000
Franchise Fee Program $130,000 TIF / CID Reimbursement $300,000
Utility Rebate Program $74,500 Topeka and Rochester Cemetery $295,450
NOTO Grant $50,000 Intellitime $100,000
Totals $1,607,000 Totals $4,055,450
Income Statement Summary 6


 Categories 2023 Actuals 2024 Budget 2024 Projected 2025 Budget* 2026 Projected 2027 Projected
Expenses $116,007,107 $115,006,998  $114,877,073 $127,570,985 $136,695,279 $142,919,193
Revenues $115,900,043 $113,631,143  $112,855,712 $ 116,899,429  $119,316,000 $ 122,153,656
Surplus / (Deficit) ($107,064) ($1,375,855)  ($2,021,361) ($10,671,556) ($17,379,279) ($20,765,537)
*The 2025 budget is balanced through a drawdown from reserves

Assumptions
• Flat Mill Levy for the General Fund at 26.554 with 4% Valuation Growth YoY
• 2% Sales Tax Growth YoY
• Union Contract Agreements through 2027 ; 2% COLA and up to 3% Merit for Non-Union
  Employees
• No Service or Scope Reduction from General Fund Departments Budgets
• Flat FTE Count
General Fund Income Statement Options 7


• Revenues
 1. Sales Tax Initiative: Current Sales Tax Rate is 9.35% ; if an additional half-
 cent was added the City could collect ≈ $19,000,000.
 2. Adjust the Mill Levy: 2 Options
 1. Raise the mill levy higher than the current rate of 36.952 (+$1.45m per mill)
 2. Keep the mill levy at current rate, but have more mills go towards the general fund. This
 would mean reducing/eliminating/delaying future bonded projects (+$1.45m per mill)
 3. Adjust Fee Schedule: This accounts for 1.95% of the City’s revenue @ $2.3m
 within the general fund. Based off proposed adjustments this could be up
 to $300,000.
 4. PILOT Transfer from Utilities Fund to General Fund

• Expenses
 1. Internal Department Budget Reductions
 2. External Budget Reductions
 City Manager’s Proposed Options to Solve Deficit 8


• Option 1: Have General Fund Departments Execute 13% cuts on
  or before 12/31/2025
• Option 2: Reduce/eliminate/delay capital projects to shift more
  of the levy going toward operations than debt service (2 mills =
  $2,900,000); then have departments execute a 11% cut based
  off 2026 projected figures on or before 12/31/2025
• Option 3: Pursue a ½ Cent Public Safety Sales Tax for 2026
  (≈$19,000,000)
City Manager’s 2025 Sales Tax Ballot Initiatives 9


1. Public Safety Sales Tax: “Shall impose a ½ sales tax to
 fund public safety services, including police, fire,
 domestic violence assistance, and related public safety
 infrastructure, with the revenue to be used exclusively for
 these purposes”
2. Special Use Sales Tax: Sponsored Council Initiative
City Manager’s Initiatives with Special Use Tax 10


1. Infrastructure
2. Economic/Community Development
3. Affordable Housing
4. Homelessness
5. Community-Based Public Safety
6. Expansion Property Tax/Utility Rebate Programs
7. Municipal Facilities
8. Transit Enhancements
9. Safe Homes Program
Earliest Timeline for Possible Ballot Initiatives in 2025 11


• February 4: Council adopts resolution for special election
• February 14: Last day to send absentee ballots
• March 10: Last day for first publication of election notice
• March 17: Last day for second publication
• April 2: Special Election Day
• April 8: Canvass of election results, confirmed with SNCO election
 officer
• May 9: Last day to send certified ordinance to Director of Taxation,
 if adopted
• October 1: Beginning collection date (must be first day of a
 calendar quarter)
 Current Sales Tax Structure 12

Current Total is 9.35% Municipalities Sales Tax Rate
• State of Kansas: 6.5% Topeka (Both Initiatives) 10.35%
• SNCO: 1.35% Topeka (One Initiatives) 9.85%
 • 0.5% for JEDO
 • 0.65% for Washburn Shawnee 9.60%
 University Olathe 9.48%
 • 0.20% for Gage Park
 Authority Overland Park 9.35%
• COT:1.5% Topeka (Current) 9.35%
 • 1.0% for General Use Lawrence 9.35%
 • 0.5% Special Use for
 Citywide Half-Cent Fund Manhattan 9.15%
 Kansas City, Kansas 9.13%
Fee Schedule 13


The departments examined are listed below, and a breakdown of the fee schedule
is attached within the agenda packet.
• Planning & Development Services
• GIS
• Municipal Court
• Engineering
• Parking
• Police
• Utilities (with the exception utility rates)
• Property Maintenance
• City Clerk
• Fire
Reduction Summary from a 13% Cut in Option 1 14

 Departments Total Amount # of Positions Personnel Totals Non-Personnel Totals
 Police Department* $7,500,000 52 $5,750,931 $1,749,069
 Fire Department** $4,994,029 45 $3,939,199 $1,054,830
 Public Works $1,050,000 4.5 $650,000 $400,000
 Information Technology $875,481 2 $137,756 $737,725
 City Manager $683,780 3 $579,080 $104,700
 Planning Department $584,101 4 $400,923 $183,178
 Finance $472,335 6 $472,335 $0
 Facilities $373,000 2.5 $243,000 $130,000
 Property Maintenance $370,000 2 $136,334 $233,666
 Municipal Court $299,000 4 $299,000 $0
 Human Resources $275,000 1 $145,000 $130,000
 City Attorney $266,000 2 $266,000 $0
 Fleet $225,000 3 $225,000 $0
 Totals $18,143,649 131 $13,420,481 $4,723,168
 *Police: 47 sworn positions; 5 non-sworn positions
 **Fire: 44 sworn positions; 1 non-sworn position
Next Steps 15


• Feedback / Discussion from Governing Body
 • Sales Tax
 • Level of Taxation
 • Ballot Language
 • Reduction Levels
• Hold a follow up meeting based on discussion on
  tentatively January 8th or 9th (Evening Meeting)
Discussion/Feedback
 Economic
Development Tools
City Economic Development Tools 2


1. Tax Increment Financing (TIFs)
 1. Sherwood Crossing (29th and Wanamaker)
2. Community Improvement Districts (CIDs)
 1. Academy Sports on Wanamaker
3. Industrial Revenue Bonds (IRBs)
 1. Cyrus Hotel (Issued by SNCO)
4. Reinvestment Housing Incentive Districts (RHIDs)
 1. Eastgate Subdivision #4
What is Tax Increment Financing (TIF) 3


• A TIF is a public financing method used to promote
  development or redevelopment in designated areas
• How it Works:
 • Baseline Property Taxes: Property taxes are assessed before
 the TIF district is established which sets a baseline.
 • Increased Property Value: As new development occurs,
 property values rise, leading to higher property taxes.
 • Increment: The increase in property taxes (the increment) is
 used to pay for eligible public improvements or infrastructure
 within the district.
 • Timeline: A TIF district typically lasts for up to 20 years in
 Kansas, but this can vary based on the project specifics.
How does a TIF get approved? 4


• Multi-step process typically requiring a minimum of 6 to 9
  months and frequently taking a year or more.
 • Eligibility finding by Governing Body
 • Two separate public hearings one for the creation of the TIF
 district and a second for approval of TIF project plan
 • County and School District right to veto creation of the TIF
 district
 • Planning commission “conformity finding”
 • City “but-for” finding policy requirement; the test evaluates
 whether the development would have happened without the
 financial assistance provided by TIF
What Areas are Eligible for a TIF? 5


• Blighted Areas
• Conservation Areas
• Pre-1992 Enterprise Zone
• Intermodal transportation area or other eligible area.
What is a Community Improvement District (CIDs) 6


• CID involves creating special districts where certain
  revenues are pledged to cover eligible costs. Revenues
  can fund various development and operating costs,
  such as land acquisition, site improvements, and/or
  public infrastructure.
• Formation: CID is typically created by a city or county
  through an ordinance, often after approval by local
  governing bodies and property owners within the
  proposed district. Property owners within the district must
  consent to the formation of the CID, often through a
  petition or vote.
What is a Community Improvement District (CIDs) 7


Funding Mechanisms
• CIDs allow the collection of taxes or special assessments
  within the district to fund improvements or services.
• Financing may be through bonds (with or without
  general obligation backing) or without bonds (i.e.,
  reimbursement of expenditures)
• Revenue sources are either an up to 2% additional sales
  tax in district (for up to 22 years) or special assessments
  on property in district (for up to 20 years) or both
Industrial Revenue Bonds (IRBs) 8


Industrial Revenue Bonds (IRBs) are used to finance the acquisition, construction,
and equipping of facilities that promote economic development, such as office
buildings, housing, nursing homes, retail, manufacturing, and warehouses.
• Revenue Bonds: IRBs are repaid from the rent of the financed facility (no general
  obligation).
• Property Tax Exemption: Up to 10 years for bond-financed properties, except for
  retail facilities.
• Sales Tax Exemption: Available for construction materials and equipment.
• Tax Status: Most IRBs are not tax-exempt. Facilities in a TIF district cannot receive
  a tax abatement from IRBs, but can receive a sales tax exemption certificate.
• Examples: The City issued IRBs via sales tax exemption for the Wheatfield Village
  Development at 29th and Fairlawn.
Reinvestment Housing Incentive District (RHID) 9


• To encourage the development of new housing in rural or
  underserved areas of Kansas, particularly where there is a
  need for more affordable or available housing options.
• Funding:
 • Same principles as a TIF
 • The district can issue bonds that are repaid from the captured
 property taxes (the “increment” or through property tax
 rebates to developer)
 • The development district is given for up to 25 years
• Example: Eastgate #4 RHID
TIFs vs. CIDs vs. RHIDs 10


• TIFs: Uses the increase in property taxes (increment)
  generated by new development to finance public
  infrastructure and improvements.
• CIDs: Uses sales taxes, property taxes, or special
  assessments directly levied on property owners and
  businesses within the district to fund development and
  improvements.
• RHIDs: Similar to a TIF, but exclusively for the
  development of new housing in rural or underserved
  areas
City Economic Development Loans 11


• Completely customizable ability under Kansas Constitutional
  Home Rule to create Economic Development loans as long as
  there is a clear public purpose.
  Discussion
budget@topeka.org

Governing Body Minutes – December 6, 2024

 HOTEL TOPEKA AT CENTER CITY, Emerald Ballroom, 1717 SW Topeka Boulevard,

Topeka, Kansas, Friday, December 6, 2024. The Governing Body members of the City of

Topeka met in special session at 9:00 A.M. with the following Councilmembers present:

Councilmembers Hiller, Ortiz, Banks, Kell, Dobler and Hoferer -6. Mayor Padilla presided - 1.

Absent: Valdivia-Alcala, Miller and Duncan -3.

 The meeting was not televised due to technical difficulties and no public comment was

allowed at the meeting. Written public comment was considered to the extent it was personally

submitted at the meeting or to the City Clerk's Office located at 215 SE 7th Street, Room 012B,

Topeka, Kansas, 66603 or via email at cclerk@topeka.org on or before December 6, 2024 for

attachment to the meeting minutes.

 AFTER THE MEETING WAS CALLED TO ORDER, Mayor Padilla thanked

Governing Body members and Staff for participating in the Retreat.

 Dr. Robert M. Perez, City Manager, stated the agenda would consist of updates on

budget, parking and economic development tools.

 AN UPDATE on City of Topeka Downtown Parking was provided by Sterling Emerson,

Parking Manager, to include current issues, rate structure and the following recommendations:

  • Consolidate zones and times, relax policies in underutilized areas
  • Add language to code clarifying one (1) free session per day
  • Add additional circumstance to space reservations to include for profit sales (food
 trucks/vendors)
  • Increase Parking Garage Rate from $67.75 to $74.00
  • Establish price parity across meters
  • Establish price parity between on street permits and garage permits
  • Implement paid parking of $1.25 per hour on Kansas Avenue
  • Restore $1.00 per hour parking on 100 block East and West of Kansas Avenue

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 Councilmember Ortiz asked if the changes would impact placement of mobile food

vendors.

 Councilmember Hiller spoke to the importance of customers understanding the system in

its entirety, and the need to provide an incentive for them to park in the garages instead of on

the street, specifically as it relates to receiving no parking citations. She stressed the importance

of a strong marketing campaign to educate customers and suggested the City partner with the

Topeka Metro and promote parking personal vehicles elsewhere and utilizing the bus services.

 Councilmember Dobler asked when the recommendations would go into effect if

approved.

 Jason Tryon, Deputy Public Works Director, reported it would not change parking

regulations for mobile food vendors, and if approved at this time the recommendations would

go into effect in April 2025 at the earliest. He stated the current policy encourages customers to

park in garages if parking longer than two hours.

 Braxton Copley, Assistant City Manager, stated the City does not have the equipment to

monitor parking in garages for less than two hours.

 Councilmember Kell encouraged Staff to promote downtown parking rates on social

media.

 Councilmember Dobler stated he believes the proposal was not sustainable and

questioned what the anticipated pro forma would be and what was the ask of the Governing

Body.

 Deputy Director Tryon stated expenses are monitored closely in order to regulate

increases to cover operational costs while saving money for capital improvements. He reported

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Staff was recommending the Governing Body approve an increase to the Parking Garage Rate

from $67.75 to $74.00.

 Mayor Padilla expressed the importance of meeting the needs of the City as well as

downtown businesses.

 Assistant City Manager Copley reported Staff has met with the Greater Topeka

Partnership to set up meetings with stakeholders and business owners. He stated Staff

understands the importance of being proactive with the initiative.

 AN UPDATE on the City of Topeka 2026 Budget was provided by Josh McAnarney,

Budget and Finance Division Director, to include the following proposed options by the City

Manager to address the $19 million deficit:

 Option No 1:
 Have General Fund Departments Execute 13% cuts on or before December 31, 2025.

 Option No. 2:
 Reduce/eliminate/delay capital project to shift more of the levy going toward operations
 than debt service (2 mills = $2,900,000); then have departments execute a 11% cut based
 off 2026 projected figures on or before December 31, 2025.

 Option No. 3:
 Pursue a Half-Cent Public Safety Sales Tax for 2026 (=$19,000,000)

 City Manager Perez recognized Budget Director McAnarney and the Finance Team for

their work on the budget and noted, estimates were within $100,000 of projections.

 Councilmember Kell requested quarterly updates on staff vacancies be provided to the

Governing Body so they can study the trends. He suggested they consider removing the Topeka

Performing Arts Center from the City’s budget as well as review the costs associated with

inmates with the end goal of realizing savings where possible.

 City Manager Perez stated he would share the monthly vacancy report with the
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Governing Body and stated vacancies were considered when building the annual budget.

 Councilmember Miller entered the room.

 Councilmember Dobler stated before any positions are eliminated from the Police and

Fire Departments they need to determine the number of vacancies in the General Fund and

which of those vacancies that need to be filled.

 Budget Director McAnarney reported approximately 9% was considered General Fund

vacancies equivalent to $1 million of vacancy credit.

 Councilmember Banks spoke to the seriousness of eliminating positions and the impact it

will have on remaining employees and the service level of the organization.

 Councilmember Hiller refenced how the 2025 Operating Budget was balanced depleting

reserve funds as well as other one-time funding sources that were used to relieve the General

Fund. She asked if the 2026 Operating Budget was being funded in a similar manner. She

questioned if there was feedback received at the public input sessions. She stated in order for

them to make the tough decisions she would prefer that each department be analyzed to

determine which program services are considered a core function of government, and if that

service was efficient and follows best practices.

 Budget Director McAnarney confirmed the 2026 proposed budget was drafted in the

same manner by shifting from the use of general funds to more robust funds where feasible.

 City Manager Perez reported three public input sessions were conducted with the highest

attendance being 8-10 participants. He stated each group had at least one person that opposed

additional sales tax, and the general consensus of a half-cent sales tax for public safety was

supported as well as the general fund sales tax seemed to be understood along with the

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alternatives presented.

 Councilmember Ortiz suggested Staff consider consolidating departments with Shawnee

County (Information Technology, Planning, Human Resources, Facilities – or any other

department) that provides similar services or that could be merged to realize savings. She

expressed concern with department directors and employees being overworked.

 Councilmember Kell expressed concern with consolidating with Shawnee County. He

stated he does not want to raise property taxes; however, they may not have a choice.

 City Manager Perez spoke to the importance of undertaking a strategic plan to establish

performance matrixes and impact on services as well as it would also provide an opportunity to

determine if the pubic would support consolidation with Shawn County.

 Councilmember Dobler stated he concurs with statements made by Councilmembers

Hiller and Ortiz and the importance of conducting a detailed review of how the City operates

before they ask for additional sales tax. He stated he would oppose any more taxes until they

figure out how to grow the community through the annexing of property, increase available

affordable housing, and generate jobs. He stated he continues to ask how many jobs are

generated by the efforts of the Joint Economic Development Organization and receives no

answer from the Organization.

 Councilmember Kell stated he concurs with statements made by Councilmember Dobler

concerning the need to annex all areas served by the City of Topeka.

 City Manager Perez reported the City annexed four areas in 2024 and is currently

working on two additional areas.

 Mayor Padilla stated growth has been an issue for the past 50 years. He believes the City

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must collaborate with Shawnee County for the overall wellbeing of the community. He spoke to

the importance of inviting home ownership in Topeka and increasing the tax base. He thanked

the Governing Body and Staff for the robust conversation as it relates to vital community

services and the desire to have the political will to work with Shawnee County. He stated he

concurs there was a need to review in detail core responsibilities and services of the City.

 Councilmember Hiller expressed her appreciation for the conversation. She spoke in

support of working smarter not harder and continuing to lobby at the State level for improved

tax laws for municipalities.

 Councilmember Miller stated it was understood there was a need to cut services and

personnel; however, they need to get creative to find a solution. He concurred that consolidation

needs to be considered where it makes sense as he supports working with Shawnee County. He

stated growth was a complex issue and the key to a long-term solution was available affordable

housing and retaining young professionals.

 Councilmember Kell clarified he supports working with Shawnee County as it would

benefit the entire community.

 Following at 15-minute recess, AN OVERVIEW of the City’s Economic Development

Tools was provided by Josh McAnarney, Budget and Finance Division Director, to include Tax

Increment Financing (TIF), Community Improvement Districts (CID), Industrial Revenue

Bonds (IRB) and Reinvestment Housing Incentive Districts (RHID).

 Amanda Stanley, City Attorney, stated the City has the ability to leverage economic

development loans as long as there was a clear purpose under Kansas Constitutional Home

Rule.

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 Councilmember Hiller expressed the importance of the City working with developing

 partners to utilize all possible resources available. She referenced the over 30 economic

 development tools that are available to the City as it relates to housing, workforce development

 incentive tools and many more.

 Councilmember Miller asked if all districts are listed on the City’s website.

 Budget Director McAnarney confirmed all districts are posted on the City’s website at

 https://www.topeka.org/finance.

 Councilmember Banks how many years incentives are offered to developers.

 City Attorney Stanley reported the City’s “but-for” find policy requirement determines

the number of years, typically 15-20, to be considered and approved by the Governing Body.

 Mayor Padilla inquired on the Neighborhood Revitalization Program (NRP) as it relates

to housing incentives and the overlapping of improvement districts. He stated he wants to make

sure all incentive opportunities are being presented to potential developers to encourage as much

development as possible for proposed areas to include much needed housing.

 Rhiannon Friedman, Planning and Development Division Director, provided an overview

of the NRP process. She stated incentives are reviewed with developers as it relates to the

proposed district and surrounding neighborhood areas and the benefit to the tax roll.

 City Attorney Stanley clarified Tax incentives are not allowed to be overlapped and

property located in a Redevelopment District could be removed from the District if the property

meets the criteria to be eligible for participation in the NRP.

 Mayor Padilla announced the Governing Body meeting would recess until 12:30 p.m. for

a lunch break.

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 At the conclusion of the lunch break the meeting reconvened into open session, and

Mayor Padilla announced all presentations have been completed by Staff and there was a need to

recess into executive session.

 Councilmember Kell moved to recess into executive session for a time period not to

exceed 1-hour to discuss data relating to financial affairs or trade secrets of three or more

corporations as allowed under K.S.A. 75-4319(b)(4). The open meeting will resume in the

Emerald Ballroom of Hotel Topeka City Center. The following staff will be necessary to assist

the Governing Body in its deliberations, City Manager Perez and any other staff the Governing

Body finds useful. The motion was seconded by Councilmember Dobler.

 Mayor Padilla asked all those in favor of recessing into executive session to indicate so

by verbally saying “yea” and those opposing to indicate so verbally by saying “no.” The motion

carried on voice vote. Councilmember Ortiz voted “no.” (8-1-0)

 At the conclusion of the executive session, the meeting reconvened into open session and

Mayor Padilla announced no action was taken during the executive session.

 Councilmember Kell moved to recess into executive session for a time period not to

exceed 45 minutes to discuss data relating to financial affairs or trade secrets of one or more

corporations as allowed under K.S.A. 75-4319(b)(4). The open meeting will resume in the

Emerald Ballroom of Hotel Topeka City Center. The following staff will be necessary to assist

the Governing Body in its deliberations, City Manager Perez and any other staff the Governing

Body finds useful. The motion was seconded by Councilmember Dobler.




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 Mayor Padilla asked all those in favor of recessing into executive session to indicate so

by verbally saying “yea” and those opposing to indicate so verbally by saying “no.” The motion

carried on voice vote. Councilmember Ortiz voted “no.” (8-1-0)

 At the conclusion of the executive session, the meeting reconvened into open session and

Mayor Padilla announced no action was taken during the executive session.

 WRITTEN PUBLIC COMMENT was received by Joseph Ledbetter and Topeka JUMP

members. (Attachment A)

 NO FURTHER BUSINESS appearing the meeting adjourned at 2:18 p.m.



 (SEAL)

 Brenda Younger City Clerk




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Attachment A