City Council

City Council Agenda City Hall, 9001 W. 62nd Street November 28, 2022 - 7:00 PM If you require any accommodation (i.e. qualified interpreter, large print, reader, hearing assistance) in order to attend this meeting, please notify the Administrative Office at 913-322-5500 no later than 24 hours prior to the beginning of the meeting. I. CALL TO ORDER - PLEDGE OF ALLEGIANCE II. ROLL CALL III. PUBLIC ITEMS Members of the public are encouraged to use this time to make comments about matters that do not appear on the agenda. Comments about items on the regular agenda will be taken as each item is considered. Please note: individuals making Public Comments will be limited to 5 minutes. In accordance with the Governing Body Rules of Procedure, the City reserves the right to refuse Public Comments that are personal, impertinent or slanderous. IV. CONSENT AGENDA All items listed under the heading are considered to be routine by the City Council and may be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which case that item will be removed from the Consent Agenda and considered separate. 1. Consider approval of the minutes of the City Council meeting held November 14, 2022. City Council - Nov 14 2022 - Minutes - Pdf V. MAYOR'S REPORT 1. Confirm the re-appointment of Bill Bailey, and Ruben Cozmyer to the Planning Commission for the terms expiring December 31, 2025. 2.  Confirm the re-appointment of Bill Bailey and Shawn McConnell to the Board of Zoning Appeals (BZA) for the terms expiring December 31, 2025. 3. Confirm the re-appointment of Brian Dailey and Bill Bailey to the Board of Structure Appeals (BSA) for the terms expiring December 31, 2025. 4. Confirm the re-appointment of Christopher Leitch, Katie Leary and Evan Quinley to the Parks and Recreation Advisory Board for the terms expiring December 31, 2024. VI. COUNCIL ITEMS 1. Consider approval of the Merriam Hotel Grant Program Item Information Form - Hotel Grant Program Discussion - Pdf 2. Consider approval of a Charter Ordinance to exempt the City of Merriam from State Requirements Regarding Inter-Fund Transfers (2nd Reading) Item Information Form - Charter Ordinance on the Transient Guest Tax - Pdf 3. Consider approval of Resolution Increasing Transient Guest Tax to 8% Item Information Form - Transient Guest Tax Resolution - Pdf VII. STAFF/INFORMATIONAL ITEMS 1. Monthly Finance Report October Finance Report 2. Community Development Update A. Informational Items VIII. EXECUTIVE SESSION Executive Session pursuant to K.S.A. 75-4319(b)(6) for preliminary discussions relating to the acquisition of real property. IX. ADJOURNMENT Respectfully submitted, Juliana Pinnick City Clerk  MINUTES City Council Meeting City of Merriam, Kansas Monday, November 14, 2022 7:00 PM City Hall, 9001 W. 62nd Street I. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Bob Pape called the meeting to order at 7:00 pm. II. ROLL CALL Council Present: Staff Present: Bob Pape Juli Pinnick, City Clerk Amy Rider Jennifer Jones-Lacy, Assistant City Administrator Whitney Yadrich Anna Slocum, Parks and Recreation Director Chris Evans Hands Bryan Dehner, Fire Chief Bruce Kaldahl Bryan P. Dyer, Community Development Director Staci Chivetta Chris Engel, City Administrator David Neal Darren McLaughlin, Police Chief Jenna Gant, Communication/Public Engagement Council Absent: Manager Jacob Laha Jim MacDonald, Public Works Director Jason Silvers Ryan Denk, City Attorney Stephanie Thompson, Human Resources Manager III. PUBLIC ITEMS Members of the public are encouraged to use this time to make comments about matters that do not appear on the agenda. Comments about items on the regular agenda will be taken as each item is considered. Please note: Individuals making Public Comments will be limited to 5 minutes. In accordance with the Governing Body Rules of Procedure, the City reserves the right to refuse Public Comments that are personal, impertinent or slanderous. Mickey Braden, 9675 W. 61st Street, commented that the 2015 Corps of Engineers Upper Turkey Creek flood mitigation project 2015 study lists one residential property that will need to be purchased to complete the project. The residential property listed in that report is his property. Mr. Braden is being transferred for his job and must sell his home by June 1, 2023 in order to get the job transfer. He is asking the city to help mitigate the negative impact to his property caused by the release of this 2015 study. He suggested the city purchase his home from him as it will be difficult to list the house knowing what the future holds for the property. Page 1 of 6 City Council Minutes – November 14, 2022 City Administrator Chris Engel commented that typically during public comments, items are not discussed however, he had asked Mr. Braden to come address this with the city council. The situation he described is accurate that the 2015 Corps report states that his property will need to be acquired under that plan. Currently the Corps is going through and validating the study from 2015, as that study was a preliminary design, and they will spend the next couple of years determining if that is the best option, or if there is an alternate design that will be better suited. With this situation, the city cannot provide Mr. Braden a clear answer which is unfortunate for him and his family. Mr. Engel indicated that he has met with Mr. Braden and his wife to discuss their situation and explained that the city would not have any information regarding the study until after his deadline to sell the home. Mr. Engel has reached out to the Corps and asked them to accelerate their process but ultimately the city has no control over that process. As a possible solution, the city could purchase his property and if the Corps study comes back to say we will need the property, the city would get reimbursed from the Corps for the purchase price. Unfortunately staff does not have the information to provide a good recommendation to the council, and the Corps cannot provide a recommendation either. If the city purchases the house and we don't need the property, the city would have a property that we don't need. Mr. Engel suggested the council could discuss this at a special or work session, but having enough information to make a decision within Mr. Braden's timeline is highly unlikely. Mr. Engel explained Mr. Braden is not alone in his situation as there are commercial properties along the creek also listed in that 2015 report as possibly needing to be removed. So the businesses in those properties who are needing to renew leases, have to determine whether they sign a 5-year lease, a 10-year lease, and if those properties will have to be acquired for the flood mitigation they are faced with relocating their business while being tied to a lease. There have been many changes downstream along the floodway since the 1998 flood and the area has not flooded since, so that is the main reason the Corps has to look at that study to see if all that is proposed is still needed. Most likely, council will hold a work session to discuss options. IV. CONSENT AGENDA 1. Consider approval of the minutes of the City Council meeting held October 24, 2022. 2. Approve final payment to Phoenix Concrete LLC for the 2022 mill and overlay program 3. Consider approval of the 2023 Schedule of Fees Councilmember Hands made a motion to approve consent agenda items 1-3. Councilmember Yadrich seconded and the motion was unanimously APPROVED. V. MAYOR'S REPORT Mayor Pape updated the council on several upcoming events. VI. COUNCIL ITEMS Page 2 of 6 City Council Minutes – November 14, 2022 1. Consider a Professional Services Agreement for the design of the 50th Ter/England St to Kessler drainage improvements with BHC Engineering in the amount of $159,810 Public Works Director Jim MacDonald presented the background for this item. In April 2021 Staff conducted a Request for Qualifications (RFQ) process for 2021-2026 capital projects engineering. There were six projects for which engineering firms could submit their interest and qualifications for one or more projects. Eleven firms responded to the RFQ. An engineering selection team comprised of the Public Works Director, CIP Project Coordinator, and the Streets Superintendent rated each statement of interest on the following criteria: 1) Project Understanding; 2) Project Approach; 3) Relevant Experience; 4) Staff and Availability, and 5) Communication/Public Relations. The Committee selected the highest-rated firm and held a project scoping meeting. BHC Engineering was selected for 50th Ter/England St to Kessler stormwater improvements project. This construction project's scope includes replacing deteriorated drainage pipes and lining from Kessler St south to 50th Ter, along with addressing the open channel behind 9224 W 50th Ter. The project engineer will determine what improvements are needed to adequately convey runoff per City and APWA criteria. The City plans to request funding from Johnson County Stormwater Management Advisory Council (SMAC) The proposal came back at $159,810, but current available budget for these engineering services is $117,092. Staff recommends using excess available funds from the Small Drainage Projects budget to fund the $42,718 overage. Councilmember Yadrich made a motion that the council approve a design services agreement with BHC Engineering for the 50th Ter/England St to Kessler drainage in the amount of $159,810. Councilmember Rider seconded and the motion was unanimously APPROVED. 2. Hotel Improvement Program - Transient Guest Tax Rate Discussion and Charter Ordinance (First Reading) Assistant City Administrator Jennifer Jones-Lacy provided the background for this item. In September, City staff presented the idea of a City-funded hotel grant that would help our hotels make needed upgrades to their properties and address some of the negative impacts the pandemic had on the industry. In addition to the grant, City staff recommends two additional changes to bolster the City's ability to support the tourism industry and allow us to effectively do business - 1) increase the Transient Guest Tax by 1%, and 2) amend the charter ordinance allowing the City to make transfers into the Guest Tax Fund from the General Fund to further support operations when needed. Page 3 of 6 City Council Minutes – November 14, 2022 Transient Guest Tax Rate The City's Transient Guest Tax (TGT) rate has been at 7% since 2008. The tax supports several important functions of the City including economic development, tourism, the Farmer's Market, special events, and marketing. In comparing our rate to that of our neighbors, Merriam is on the low end with only Olathe and Edwardsville at a lower rate. City Tax Rate Last Update Olathe 6% 7/1/2001 Edwardsville 6% 7/1/2018 Merriam 7% 1/1/2008 Lenexa 8% 1/1/2011 Leawood 8% 1/1/2012 Kansas City, KS 8% 1/1/2009 Roeland Park 8% 1/1/2019 Gardner 8% 1/1/2016 Shawnee 8% 7/1/2021 Overland Park 9% 7/1/2007 Mission 9% 4/1/2008 Prairie Village 9% 10/1/2020 While the cost of staffing and services has increased since 2008, the revenue generated from the TGT has fallen. In addition to the closure of one hotel in late 2017, the pandemic significantly impacted the industry, and revenue to the City took a major hit. Annual revenue from the TGT decreased from $511,500 in 2019 to $381,400 in 2020, rebounding a bit in 2021 to $451,300. Staff recommends Council consider increasing the TGT rate from 7% to 8% so we can continue to provide the quality of services that our residents and guests of Merriam have come to expect and appreciate. This will put us in line with the majority of our neighbors and help us adequately fund our programs and services. A draft Resolution to approve this increase is attached. We ask the City to consider the change to the tax and approve the Resolution as part of our total Hotel Improvement Program that will come before Council on November 28th. Charter Ordinance The Transient Guest Tax distribution, regulations and use are dictated by state statute. However, each City can charter out of provisions within the state statute regarding this tax if they so choose. In 2007, the City approved Charter Ordinance No. 23 which allowed the City to set its tax rate, determine its use, and establish a fund for these resources. Staff recommends an amendment to the TGT Charter Ordinance to allow for the transfer Page 4 of 6 City Council Minutes – November 14, 2022 of General Fund resources into this fund which would allow for investments in economic development and further support of special events, staff, and promotions. There are no current plans to make a transfer into the TGT Fund but this change will allow future flexibility to do so with City Council approval. 3. Consider approval of 2023 Salary ranges. City Administrator Chris Engel provided the background for this item. In an effort to ensure our employees are compensated in alignment with market demands, the city contracted with McGrath Human Resources Group early in 2022 to conduct a comprehensive salary study. Staff has not conducted a full market survey since 2013. The goal is to assure our wages remain competitive for the purposes of recruitment and retention of the best talent available in NE Johnson County. The study concludes that the current labor market supports the ranges laid out in the attached compensation plan. If approved, the recommended changes will take effect on January 1, 2023. Councilmember Hands made a motion to approve the proposed salary ranges to take effect on January 1, 2023. Councilmember Chivetta seconded and the motion was unanimously APPROVED. VII. STAFF/INFORMATIONAL ITEMS 1. November CIP Update Public Works Director Jim MacDonald provided the following CIP updates: West Frontage Rd. is nearly complete with the majority of the curb and sidewalk replacement completed. The mill and overlay is complete with the exception of the area near the railroad tracks. The curbs, sidewalks and asphalt near the tracks are scheduled to be completed the week of November 14th, with the exception of the railroad sidewalk panels. BNSF will install the panels when they arrive. 55th St. Improvement project is moving along with the contractor working on the north side of 55th St. removing and replacing curbs, sidewalks and driveway approaches. Power poles are being replaced and the contractor has now moved to the southside of the street to begin curb replacements. May 31, 2023 is the substantial completion date. 2022 Mill and overlay program is completed with the final payment being approved tonight. This project came in $52,070 under budget. Merriam Drive street improvements from Johnson Dr. to 55th St. is being designed by the city Engineer and the first public meeting will be December 14th at the Merriam Community Center from 6:00 -7:30 pm. The open-house style meeting will have a 3D video rendering of the project. Page 5 of 6 City Council Minutes – November 14, 2022 A. INFORMATIONAL ITEMS 1. Parks and Recreation Advisory minutes were included in the Council Agenda Packet. VIII. EXECUTIVE SESSION IX. ADJOURNMENT There being no further business to come before the council, Councilmember Hands moved to adjourn at 7:45 pm. Councilmember Yadrich seconded and the motion was unanimously APPROVED. Respectfully submitted, Juliana Pinnick City Clerk Page 6 of 6  Item Information Form Subject/Agenda Item: Consider approval of the Merriam Hotel Grant Program Submitted By: Jennifer Jones-Lacy, Assistant City Administrator Meeting Date: November 28, 2022 Project Background/Description: In September, staff introduced the Merriam Hotel Grant program to the City Council. The grant would provide up to $1 million ($250,000 each) to our hotels to do significant renovations and improvements to the facilities. The goal is to decrease blight, elevate our hotels to get higher average daily room rates and mitigate crime. Statistics have shown a 57% increase in calls to hotels from 2015, most of which are from the Extended Stay. Staff recommends approval of this program as outlined in the attached presentation. General Fund resources will be made available for this grant by decreasing transfers to the Capital Improvement Fund by $1 million which will then be offset with available ARPA funds to cover other capital project costs, as is permissible under the Final Rule guidance for ARPA funds. If approved, this program will begin in 2023 and be managed through the Visitors Bureau with support from the Assistant City Administrator and City Administrator. City Council Goals and Objectives: 4.0 Maintain Economic Vitality 4.1 Provide support to existing businesses. Financial Impact: Amount of Request/Contract: $1,000,000 Amount Budgeted: $0 Funding Source/Account #: 001-1510-419-85-23 Recommended Motion: Staff recommends approval of the Merriam Hotel Grant Program beginning in 2023. Supporting Documents: Hotel Improvement Proposal 11.28.22 Merriam Hotel Improvement Proposal Hotel Grant Overview Goals • $1 million in funding • Enhance the aesthetics and • 50/50 match required amenities of each property • Minimum $10k investment • Increase Average Daily Room Rates • Reimbursement of $5k - $250k/hotel • Decrease blight and vagrancy at the hotels • Create a grant in the General Fund and will roll over for 3 • Increase transient guest tax and years until funds are depleted sales tax revenues generated from the hotels Hotel Grant Program -Details Allowable Expenses • Exterior renovations: • façade improvements, paint, lighting upgrades, door/window efficiency improvements, outdoor gathering area, landscape, signage • Lobby improvements • Guest amenities • Food/beverage area improvements or addition, swimming pool improvements, technology access improvements for guests • Room renovations • Modern upgrades to carpeting, furnishings, bathrooms, etc. Increase Transient Guest Tax to 8% City Tax Rate Last Update Olathe 6% 7/1/2001 Edwardsville 6% 7/1/2018 Merriam 7% 1/1/2008 Lenexa 8% 1/1/2011 Leawood 8% 1/1/2012 Kansas City, KS 8% 1/1/2009 Roeland Park 8% 1/1/2019 Gardner 8% 1/1/2016 Shawnee 8% 7/1/2021 Overland Park 9% 7/1/2007 Mission 9% 4/1/2008 Prairie Village 9% 10/1/2020 Ending Fund Balance for TGT Fund by Year 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 Amend Charter Ordinance to Allow Transfers • Amend Charter Ordinance No. 23 exempting the City from the state Transient Guest Tax Statute to allow transfers from the General Fund into the TGT Fund to: • Sure up resources in this fund in the event of a significant revenue loss • Provide for economic development opportunities • Provide greater flexibility to the City to ensure continuing operations • No transfers are planned at this time. Questions?  Item Information Form Subject/Agenda Item: Charter Ordinance to exempt the City of Merriam from State Requirements Regarding Inter-Fund Transfers (2nd Reading) Submitted By: Jennifer Jones-Lacy, Assistant City Administrator Meeting Date: November 28, 2022 Project Background/Description: The Transient Guest Tax distribution, regulations, and use are dictated by state statute. However, each City can charter out of provisions within the state statute regarding this tax if they choose. In 2007, the City approved Charter Ordinance No. 23 which allowed the City to set its tax rate, determine its use, and establish a fund for these resources. Staff recommends an amendment to the TGT Charter Ordinance to allow for the transfer of General Fund resources into this fund which would allow for investments in economic development and further support of special events, staff, and promotions. There are no current plans to make a transfer into the TGT Fund but this change will allow future flexibility to do so with City Council approval. The attached Charter Ordinance includes the suggested change, this is the second reading of this ordinance. Once approved by a 2/3rd majority vote, it will be published in the Legal Record twice and will go into effect after a 61-day protest period from the date of the last publication. City Council Goals and Objectives: N/A Financial Impact: Amount of Request/Contract: N/A Amount Budgeted: N/A Funding Source/Account #: N/A Recommended Motion: Approve the attached Charter Ordinance to allow for transfers from the General Fund into the Transient Guest Tax Fund. Supporting Documents: 8IP9054-Transient Guest Tax CO - 11 10 22 Clean  CHARTER ORDINANCE NO. _____ A CHARTER ORDINANCE REPEALING CHARTER ORDINANCES NOS. 13, 15 AND 23 EXEMPTING THE CITY OF MERRIAM, KANSAS FROM K.S.A. 12-1692, 12-1693, 12-1694, 12-1695, 12-1696, 12-1697, SUBSECTION (e) of 12-1698, 12-16,100 and 12-16,101, ENTITLED "PROMOTION OF TOURISM AND CONVENTIONS," AND PROVIDING SUBSTITUTE AND ADDITIONAL PROVISIONS ON THE SAME SUBJECT. WHEREAS, The City of Merriam, Kansas, by the power vested in it by Article 12, Section 5 of the Constitution of the State of Kansas, pursuant to Charter Ordinance No. 13, 15, and 23 previously exempted itself from and made inapplicable to it the provisions of K.S.A. 12-1696, 12-1697, 12-1698, 12-1699, 12-16,100 and 12-16,101, relating to the promotion of tourism and conventions, and provided substitute and additional provisions on the same subject as provided in such Charter Ordinance No. 13, 15 and 23. BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF MERRIAM, KANSAS THAT: Section 1. The City of Merriam, Kansas, by the power vested in it by Article 12, Section 5 of the Constitution of the State of Kansas, hereby elects to exempt itself from and make inapplicable to it all of the provisions of K.S.A. 12-1692, 12-1693, 12-1694, and 12-1695, which relate to the levy of a transient guest tax by cities located within counties having a population of more than three hundred thousand (300,000); all the provisions of 12-1696, relating to definitions pertaining to transient guest tax; all the provisions of 12-1697, subsection (e) of 12-1698,which relate to the levy of a transient guest tax, to the maximum rate thereof, and to the purposes for which transient guest tax revenues may be spent; all of the provisions 12-16,100, providing for a transient guest tax refund fund; all the provisions of12-16,101, providing for a convention and tourism committee; and hereby provides substitute and additional provisions on the same subjects as hereinafter provided, repealing those provisions previously set forth in Charter Ordinance Nos. 13, 15 and 23. Section 2. As used in this Charter Ordinance, the following words and phrases shall have the meanings respectively ascribed to them herein: a. “Person” means an individual, firm, partnership, corporation, joint venture or other association of persons; b. “Hotel,” “motel” or “tourist court” means: (1) any structure or building which contains rooms furnished for the purposes of providing lodging, which may or may not also provide meals, entertainment or various other personal services to transient guests, and which is kept, used, maintained, advertised or held out to the public as a place where sleeping accommodations are sought for pay or compensation by transient or permanent guests and having more than two bedrooms furnished for the accommodation of such guests; or, (2) any short-term rental;  c. “Transient guest” means a person who occupies a room in a hotel, motel, or tourist court for not more than twenty-eight (28) consecutive days; d. “Business” means any persons engaged in the business of renting, leasing or letting living quarters, sleeping accommodations, rooms or a part thereof in connection with any motel, hotel, or tourist court, including any short term rental company; e. “Tourism” means the practice of touring and traveling for recreation, business or education; f. “Touring” means a trip, excursion or circular journey for business, recreation or education; g. “Accommodations broker” means any business which maintains an inventory of two or more rooms in one or more locations which are offered for pay to a person or persons; h. “Short-term rental” means any home, cabin, apartment, condominium, or other residential dwelling where one or more rooms is offered for pay to a person or persons, and which is advertised online through a short-term rental company; i. “Short-term rental company” means a person or an affiliate of the person that: (1) provides a platform through which an unaffiliated person, or the agent of an unaffiliated person, offers one or more short-term rentals in exchange for payment, and (2) the person or an affiliate of the person collects or processes the payment for the short-term rentals. Section 3. The City of Merriam is a city of the second class authorized by law to levy transient guest tax. The transient guest tax levied by the City shall be administered and collected by the Kansas Department of Revenue in accordance with K.S.A. 12-1696 et seq. and amendments thereto, this Ordinance and any resolution adopted by the City Council of the City designating the percentage and effective dates of such tax. Section 4. A transient guest tax shall be levied in the City of Merriam, Kansas, upon the gross rental receipts derived from or paid by transient guests for lodging or sleeping accommodations, exclusive of charges for incidental services or facilities, in any hotel, motel or tourist court, including any short term rental. The percentage and effective dates of such tax shall be determined by the City Council and shall be specified in a resolution authorizing the same. Section 5. A “Transient Guest Tax Fund” is hereby established to receive disbursements of money from the Secretary of Revenue, as described in K.S.A. 12-1698. The Fund may also receive disbursements or loans from the City General Fund. Section 6. The revenues from the transient guest tax and receipts into the Transient Guest Tax Fund shall be expended for the following purposes: promotion of conventions and tourism; attracting people to the City of Merriam; general economic development; repayment of any loans from the City General Fund and related expenditures as may be determined by the City Council in a manner consistent with these purposes. Section 7. A "Visitors Advisory Council" is hereby established to advise and make recommendations to the Governing Body concerning expenditures from the Transient Guest Tax Fund and programs funded thereby. The composition of the Visitors Advisory Council, as well as the method of appointment and length of term on such Council, shall be established by the City Council pursuant to Council policy or resolution. No member of the Visitors Advisory Council shall receive any compensation for service thereon. Section 8. The City of Merriam, Kansas, upon adoption of a resolution authorizing the levy of a transient guest tax, shall have the authority to expend, or contract for the expenditure of, funds from the Transient Guest Tax Fund. Section 9. Repeal. That Charter Ordinances Nos. 13, 15 and 23 are hereby repealed. Section 10. Publication. This Charter Ordinance shall be published once each week for two (2) consecutive weeks in the official City newspaper. Section 10. Take Effect. This is a charter ordinance and shall take effect sixty-one (61) days after its final publication unless a sufficient petition for a referendum is filed and a referendum is held on the charter ordinance as provided in Article 12, Section 5, Subdivision (c) (3) of the Constitution of the State of Kansas, in which case, the charter ordinance shall not take effect until approved by a majority of the electors voting thereon. PASSED BY THE GOVERNING BODY, NOT LESS THAN TWO-THIRDS OF THE MEMBERS ELECT VOTING IN FAVOR THEREOF THIS ____ DAY OF _________________________, 2022. APPROVED AND SIGNED BY THE MAYOR THE ____ DAY OF ______________________, 2022. _____________________________________ Bob Pape, Mayor ATTEST: ___________________________________ Juli Pinnick, City Clerk APPROVED AS TO FORM: _____________________________________ Ryan B. Denk, City Attorney I hereby certify that the foregoing charter ordinance was published in the official City newspaper on the _____ day of _____________________, 2022 and again on the ____ day of ________________________, 2022. ____________________________________ Juli Pinnick, City Clerk No petition demanding such ordinance be submitted to a vote of the electors was filed with the City Clerk within sixty-one (61) days of the final publication of said ordinance. _____________________________________ Juli Pinnick, City Clerk  Item Information Form Subject/Agenda Item: A Resolution Increasing Transient Guest Tax to 8% Submitted By: Jennifer Jones-Lacy, Assistant City Administrator Meeting Date: November 28, 2022 Project Background/Description: The attached resolution increases the City's Transient Guest Tax by 1% to 8%. The current rate has been in place since 2008 and is lower than that of most of our neighbors. This tax funds economic development, tourism, special events, and the Farmers' Market. If approved, City staff will send the resolution to the Kansas Department of Revenue for the new rate to go into effect on January 1, 2023. City Council Goals and Objectives: N/A Financial Impact: Amount of Request/Contract: N/A Amount Budgeted: N/A Funding Source/Account #: N/A Recommended Motion: Staff recommends approval or the Resolution increasing the Transient Guest Tax rate from 7% to 8%. Supporting Documents: Resolution to set new TGT rate  RESOLUTION NO. ______ A RESOLUTION ESTABLISHING THE AMOUNT OF THE TRANSIENT GUEST TAX Whereas, the City of Merriam, Kansas, by Charter Ordinance No. 23, established a Transient Guest Tax to be levied upon gross rental receipts derived from or paid by transient guests for lodging or sleeping accommodations; and Whereas, the Governing Body of the City of Merriam, Kansas, approved Charter Ordinance No. ___, which replaced Charter Ordinance No. 23 amending certain provisions of the source and use of Transient Guest Tax within the City; and Whereas, the Governing Body of the City of Merriam, Kansas, by Resolution No. 758, approved August 20, 2007, set the Transient Guest Tax rate at seven percent (7%); and Whereas, the Governing Body of the City of Merriam, Kansas has determined it to be in the best interests of the City and its citizens to increase the Transient Guest Tax from seven percent (7%) to eight percent (8%), to become effective as set forth herein. Now therefore, be it resolved by the Governing Body of the City of Merriam, Kansas: Section One. The Transient Guest Tax to be levied pursuant to Charter Ordinance No. ____ is hereby increased from seven percent (7%), to eight percent (8%), to become effective on January 1, 2023, and shall thereafter remain at said eight percent (8%) until otherwise altered or amended by the Governing Body of the City of Merriam, Kansas. Section Two. The Transient Guest Tax shall remain at seven percent (7%) until December 31, 2022. Section Three. Resolution No. 758 is hereby repealed upon the effective date of this Resolution. Section Four. This Resolution shall be effective upon the date approved and adopted by the Governing Body of the City of Merriam but in no case earlier than the effective date of Charter Ordinance No. ___. ADOPTED by the Governing Body the day of , 2022. __________________ Bob Pape, Mayor ATTEST: ______________________ Juliana Pinnick, City Clerk 2 CIT Y OF MERRIAM, K ANSAS MONTHLY FINANCIAL REPORT October 2022 Finance Department  City of Merriam, KS Monthly Financial Report - Executive Summary October 2022 Revenues Current Month YTD YTD Over/(Under) Various Funds: Actual Actual Budget YTD Budget 1% City Sales Tax $ 632,901 $ 6,375,516 $ 5,270,000 $ 1,105,516 1/4% City Sales Tax-Storm/Street 164,758 1,640,686 1,317,500 323,186 1/4% City Sales Tax-Rec. Facilities 164,758 1,640,686 1,317,500 323,186 City Use Tax 49,271 849,079 613,333 235,746 County Sales Taxes - All 156,243 1,715,636 1,364,000 351,636 Real Property Taxes - Gen Fund $ 2,177 $ 4,966,966 $ 4,913,765 $ 53,201 Transient Guest Tax - 136,533 150,000 (13,467) Franchise Fees 114,311 1,203,612 1,085,833 117,779 Court Fines 67,243 702,562 750,000 (47,438) Expenditures General Fund - only: Current Mo. Monthly Over/(Under) Year to Date Year to Date Over/(Under) Actual Budget Budget Actual Budget YTD Budget Salaries and Benefits $ 669,928 $ 831,258 $ (161,330) $ 7,772,004 $ 8,312,577 $ (540,573) Contractual Services: OP Fire Services 675,411 239,583 435,828 1,917,557 2,395,833 (478,276) Utilities 50,740 64,261 (13,522) 485,469 642,613 (157,143) Legal 3,123 5,500 (2,378) 27,278 55,000 (27,723) Property Maint 43,597 80,368 (36,771) 656,604 803,680 (147,076) Specific Contractual* 31,760 33,889 (2,129) 229,485 338,885 (109,400) Other Contractual 46,664 104,732 (58,068) 780,972 1,047,323 (266,351) Commodities: Gasoline/Diesel Fuel 16,919 14,673 2,246 131,224 146,729 (15,506) Other Commodities 35,849 56,912 (21,062) 424,515 569,119 (144,604) *Specific Contractual includes: specific ongoing outside contractors (Judge, Prosecutor, Auditor, prisoner care, Information Services, legislative monitor, payroll processing, and animal care). The City Attorney is included under the Legal line item. Comments:  Year-to-date 2022 1% and 1/4% City sales tax collections are 7.07% higher than the prior year. o Auto sales are 8.52% higher than prior year actual. o Merriam Town Center/Johnson Drive sales are 2.88% higher than prior year actual. o Other categories are 6.64% higher than prior year actual.  Third quarter 2022 Transient Guest Taxes of $133,673.84 were received November 1st.  City of Merriam, KS Monthly Financial Report - Executive Summary October 2022 Equipment Purchases >$5,000 Month Description Amount January Information Technology – phone server/replacement server $16,600 February Information Technology – phone system partial payment $20,013 Information Technology – phone system consulting $7,500 Parks & Recreation – trail head sign partial payment $7,072 Parks & Recreation – Turkey Creek Festival banners $9,980 March Public Works – message board $16,354 Public Works – four lawnmowers $44,581 April Administration – accounting software consulting $28,800 May Citywide – replace automated external defibrillators $5,337 Police – police vehicle $34,885 Parks & Recreation – trailhead sign at 75th Street final payment $7,072 June Police – gas masks for officers $22,905 Public Works – skid steer/cold planer machine $93,188 July Information Technology – phone server/replacement $60,035 Administration – accounting software consulting $9,200 Fire – mattresses & bedsprings $6,528 August Administration – accounting software consulting $9,600 September Administration – accounting software consulting $7,000 Police – tasers for officers (payment 2 of 5) $25,200 Police – moving radar guns (2) $6,408 Public works – broom for cold planer machine $6,493 October Administration – accounting software consulting $5,600 Information Technology – ten replacement computers $9,530 Cash and Investment Balances FHLB = Federal Home Loan Bank $ 19,650,000 43% FHLMC = Federal Home Loan Mortgage Corp. 4,720,000 10% FFCB = Federal Farm Credit Bank 10,650,000 23% US Treasury Bills 4,959,000 11% Municipal Bonds 235,000 1% TD Ameritrade MMA 1,138,833 4% Total Investments 41,352,833 92% US Bank Cash Account 4,033,000 8% Total Cash plus Investments $ 45,385,832 100%  City of Merriam, KS Monthly Financial Report - Executive Summary October 2022 FAQ’s Question: What is the City Sales Tax rate effective January 1, 2022? Answer: 9.475% (6.500% to the State of Kansas; 1.475% to Johnson County; 1.50% to Merriam) Question: How much does the City owe for general obligation bonds? Answer: $595,000 is the current balance for the Series 2012 and $11,515,000 for Series 2018. Total balance is $12,110,000. Question: When will the City retire its existing debt? Answer: The Series 2012 bonds will be paid off in 2023 and the Series 2018 bonds will be paid off in 2027. Question: What is the City’s bond rating? Answer: S & P Global Ratings rates the City’s debt as “AAA (Stable)” Question: What is the City’s current mill levy? Answer: 27.665 mills (2021 levy supporting 2022 budgets) Question: When was the last time the City Council voted to increase the mill rate? Answer: The City Council last voted to increase the mill rate in 2008 to support the FY2009 Budget. Question: What is the City’s assessed property valuation? Answer: $247.6 million per Johnson County Clerk as of November 1, 2022 Question: How much of the City’s assessed property valuation is for Residential, Commercial, and Other? Answer: $127 million or 51% for Residential (including apartments); $114 million or 46% for Commercial; $6.6 million or 3 for Other (including vacant land, personal property, utilities) Question: How many households are in the City? Answer: 5,132 households (homes and apartments) per the 2020 U.S. Census Bureau Question: What is the City’s “pull factor” and what does this mean? Answer: 4.79 is the City’s pull factor per the Kansas Department of Revenue (December 2021 report). The term refers to how many non-residents a community “pulls” for shopping purposes. A pull factor greater than 1.00 indicates the community attracts more retail sales than it loses when residents shop outside the city. Merriam’s is currently the highest in the State of Kansas.  City of Merriam Sales Tax Comparison - 1.50% YTD 2022 vs 2021 vs 2020 $12,000,000 $10,000,000 Other Sales Tax, $1,770,635 17% Other Sales Tax, $1,671,672 17% Other Auto, $601,256 6% $8,000,000 Telecom/Utilities, $423,494 4% Other Auto, $586,025 6% Telecom/Utilities, $363,611 4% Johnson Drive Retail, Other Sales Tax, $1,696,087 Johnson Drive Retail, $1,387,091 17% 16% $1,648,606 $6,000,000 17% Other Auto, $515,241 7% Telecom/Utilities, $335,038 4% Johnson Drive Retail, $1,443,992 19% $4,000,000 Automobiles, Automobiles, $6,014,496 $5,542,489 Automobiles, 57% 56% $4,071,989 $2,000,000 53% $- YTD 2022 YTD 2021 YTD 2020  CITY SALES & USE TAXES * (Regular 1.50%) Through: October 2022 Month Comparison Average Collected/Received 2018 2019 2020 2021 2022 2021 and 2022 2018-2021 Jan/Mar 849,645 852,037 929,937 1,087,169 1,161,083 73,914 929,697 Feb/Apr 984,697 815,595 994,443 969,981 1,029,422 59,441 941,179 Mar/May 997,674 1,014,294 803,256 1,293,467 1,280,857 (12,610) 1,027,173 Apr/Jun 1,079,168 979,825 654,772 1,332,840 1,453,954 121,114 1,011,651 May/Jul 1,025,175 1,127,238 914,993 1,255,000 1,291,455 36,455 1,080,601 Jun/Aug 1,088,415 981,803 1,246,100 1,257,815 1,441,780 183,965 1,143,533 Jul/Sep 1,028,566 1,156,685 1,066,462 1,393,560 1,835,728 442,168 1,161,318 Aug/Oct 1,093,553 1,156,528 1,143,388 1,222,572 1,011,689 (210,884) 1,154,010 Sep/Nov 898,941 1,092,707 1,013,232 1,075,433 1,020,078 Oct/Dec 978,915 1,030,482 1,095,142 1,517,157 1,155,424 Nov/Jan 947,857 1,041,482 1,027,139 1,231,847 1,062,081 Dec/Feb 966,502 1,043,210 1,146,167 1,292,578 1,112,114 Total 11,939,108 12,291,885 12,035,031 14,929,419 10,505,968 693,564 12,798,861 YTD 2018 2019 2020 2021 2022 October 2022 8,146,892 8,084,005 7,753,350 9,812,404 10,505,968 Average Collections Between 2018-2021 $ 12,798,861 Budgeted 2022 10,871,000 Estimate Based on Current Collection Rate 15,758,951 Over/(Under) at Current Collection Rate $ 4,887,951 * Kansas imposes a use tax on items purchased outside of Kansas for use in Kansas. The rate is identical to the sales tax rate in effect where the customer takes delivery.  1.50% City Sales & Use Tax Year to Date Comparison 2018-2022 $12,500,000 $11,500,000 $10,500,000 $9,500,000 $8,500,000 $7,500,000 $6,500,000 $5,500,000 $4,500,000 $3,500,000 $2,500,000 $1,500,000 $500,000 2018 2019 2020 2021 2022  JOHNSON COUNTY SALES/USE TAX AND PUBLIC SAFETY TAXES * (Total City Share is 1.25%) Through: October 2022 Month Comparison Average Collected/Received 2017 2018 2019 2020 2021 2022 2021 and 2022 2017-2021 Jan/Mar 132,558 164,426 147,949 152,833 181,820 196,894 15,074 155,917 Feb/Apr 136,333 149,591 148,168 156,265 159,569 179,393 19,824 149,985 Mar/May 148,999 178,476 167,514 150,945 194,529 218,998 24,469 168,093 Apr/Jun 157,071 171,127 165,807 153,599 197,500 232,783 35,283 169,021 May/Jul 168,652 179,056 182,514 164,589 200,519 210,441 9,922 179,066 Jun/Aug 181,983 185,132 176,338 192,327 197,612 224,966 27,354 186,678 Jul/Sep 172,667 166,088 181,055 168,081 211,825 295,918 84,093 179,943 Aug/Oct 176,915 175,932 178,013 187,229 206,190 156,243 (49,947) 184,856 Sep/Nov 180,671 164,596 178,770 177,905 161,633 172,715 Oct/Dec 165,159 163,132 176,796 182,813 249,624 187,505 Nov/Jan 171,494 183,409 177,798 180,092 208,659 184,290 Dec/Feb 196,607 189,838 194,792 179,184 244,102 200,905 Total 1,989,108 2,070,804 2,075,514 2,045,862 2,413,582 1,715,636 166,071 2,118,974 YTD 2017 2018 2019 2020 2021 2022 October 2022 1,275,177 1,369,828 1,347,358 1,325,868 1,549,565 1,715,636 Average Collections Between 2017-2021 $ 2,118,974 Budgeted 2022 2,046,000 Estimate Based on Current Collection Rate 2,573,454 Over/(Under) at Current Collection Rate $ 527,454 * The County special "courthouse" 0.25% tax, effective April 1, 2017, will expire March 31, 2027. All other County taxes have no sunset date.  October 2022 REVENUE SUMMARY BY FUND Fund YTD Monthly YTD % Number Revenues Budget/Est. Actual Collections Balance Budget/Est. 001 General Fund $ 20,497,821 $ 17,819,239 $ 1,209,604 $ 2,678,582 86.93% 201 Special Highway Fund 284,950 223,925 75,828 61,025 78.58% 202 Special Alcohol Fund 21,263 19,282 3 1,981 90.68% 203 Special Park & Rec 21,263 19,254 0 2,009 90.55% 204 Transient Guest Tax 373,500 210,210 3,668 163,290 56.28% 221 Risk Management Reserve 19,985 8,047 183 11,938 40.27% 222 Equipment Reserve Fund 740,000 667,729 58,414 72,271 90.23% 301 Capital Improvement Fund 6,450,019 537,780 303 I-35 District CIP Fund 15,644 594 401 Bond and Interest Fund 2,188,427 2,729,657 253,974 (541,230) 124.73% 403 TIFB-I35 District 4,513,368 - 702 Special Law Enforcement-State/Local - - 703 Property Forfeiture Fund - - 704 Grant Fund - (845,531) 705 Opiod Settlement Fund 2,735 - TOTAL $ 24,147,209 $ 32,679,110 $ 1,294,519 $ 2,449,865 Average Rate of Sales Tax Collections Should Be: 66.67% Average Rate of Other Collections Should Be: 83.33%  October 2022 EXPENDITURE SUMMARY BY FUND Fund YTD Monthly YTD % Number Expenditures Budget/Est. * Actual Expenditures Encumbrances Balance Budget/Est. 001 General Fund $ 23,584,406 $ 17,908,243 $ 2,005,364 $ 546,700 $ 5,129,463 78.25% 201 Special Highway Fund 330,000 206,764 24,246 87,002 36,234 89.02% 202 Special Alcohol Fund 20,000 20,000 - - - 100.00% 203 Special Park & Rec 18,500 17,987 310 - 513 97.22% 204 Transient Guest Tax 660,119 451,848 46,057 6,948 201,322 69.50% 221 Risk Management Reserve 30,000 (5,527) 3,948 - 35,527 -18.42% 222 Equipment Reserve Fund 946,186 487,945 16,347 158,288 299,953 68.30% 301 Capital Improvement Fund 2,686,042 149,200 3,084,978 303 I-35 District CIP Fund 1,698,350 851,645 557,514 401 Bond and Interest Fund 3,241,700 3,241,700 - - - 100.00% 403 TIFB-I35 District 1,322,702 - - 702 Special Law Enforcement-State/Local 4,981 - - 703 Property Forfeiture Fund 5,500 - - 704 Grant Fund - - - 705 Opiod Settlement Fund - - - TOTAL $ 28,830,911 $ 28,046,536 $ 3,097,116 $ 4,441,431 $ 5,703,012 Average Expenditure Rate Should Be: 83.33% * Excludes budgeted reserves and contingencies  October 2022 EXPENDITURE SUMMARY BY DEPARTMENT GENERAL FUND - YEAR-TO-DATE 2022 2021 Actual 2022 Annual Year-to-date % of Budget Year-to-date Over/(Under) Department Budget/Est. Actual Used Actual Actual 2021 City Council $ 91,193 $ 67,348 73.85% $ 60,606 $ 6,742 Administration 1,344,719 1,101,461 81.91% 1,017,427 84,034 Municipal Court 408,537 278,625 68.20% 288,722 (10,097) Info Services 556,144 411,047 73.91% 435,278 (24,231) General Overhead General 603,480 361,959 59.98% 288,208 73,751 Utilities 775,000 480,963 62.06% 502,316 (21,352) Property Maintenance 563,016 340,853 60.54% 374,665 (33,812) Risk Management 275,000 259,777 94.46% 207,562 52,215 Legal 70,000 29,602 42.29% 26,409 3,194 Employee Benefits 78,450 33,080 42.17% 24,409 8,670 Fleet Maintenance 331,420 233,124 70.34% 162,901 70,222 Interfund Transfers 6,116,296 5,298,911 86.64% 4,732,224 566,686 Contingency Usage * - - 0.00% - - Police 4,452,721 3,347,007 75.17% 3,236,021 110,987 Fire 2,935,195 1,934,847 65.92% 1,158,017 776,830 Public Works 2,352,390 1,771,842 75.32% 1,549,528 222,315 Culture & Rec-Parks/Comm Ctr 1,828,715 1,311,986 71.74% 1,096,031 215,955 Community Dev 802,130 645,809 80.51% 579,264 66,546 Total General Fund $ 23,584,406 $ 17,908,243 75.93% $ 15,739,588 $ 2,168,655 Average Expenditure Rate Should Be: 83.33% * Excludes budgeted reserves and contingencies INVESTMENT REPORT  Investment Listing by Maturity Date 10/31/2022 Purchase Par Maturity Monthly Fund Type Location Date Amount Date Yield Subtotal 301/901 Treasury MMA TD Ameritrade 09/01/16 $ 1,138,833 N/A 2.690% $ 1,138,833 901 AGENCY-FHLB TD Ameritrade 04/29/22 1,000,000 11/14/22 1.471% 301 AGENCY-FHLMC TD Ameritrade 08/13/21 2,500,000 11/23/22 0.078% $ 3,500,000 301 MUNICIPAL BOND TD Ameritrade 05/07/20 235,000 12/01/22 1.050% 901 AGENCY-FHLB TD Ameritrade 04/26/22 180,000 12/09/22 1.603% 301/901 AGENCY-FHLB TD Ameritrade 04/26/22 800,000 12/09/22 1.568% 301 AGENCY-FHLB TD Ameritrade 05/18/22 1,000,000 12/12/22 1.631% 301 TBILL TD Ameritrade 06/16/22 783,000 12/15/22 2.121% $ 2,998,000 901 AGENCY-FFCB TD Ameritrade 01/13/21 500,000 01/13/23 0.160% 301 AGENCY-FFCB TD Ameritrade 07/23/21 1,000,000 01/23/23 0.155% 221 AGENCY-FFCB Country Club 01/30/20 350,000 01/23/23 1.441% 301 AGENCY-FFCB Country Club 01/30/20 150,000 01/23/23 1.441% 301 AGENCY-FHLB TD Ameritrade 10/27/22 1,000,000 01/27/23 4.000% $ 3,000,000 901 AGENCY-FFCB TD Ameritrade 02/10/21 2,000,000 02/10/23 0.135% 901 AGENCY-FHLB TD Ameritrade 06/07/22 1,045,000 02/17/23 1.965% 901 TBILL TD Ameritrade 06/16/22 843,000 02/28/23 2.655% $ 3,888,000 301/303 AGENCY-FFCB TD Ameritrade 03/03/21 1,000,000 03/01/23 0.158% 301 TBILL TD Ameritrade 09/08/22 508,000 03/09/23 3.392% 901 AGENCY-FFCB TD Ameritrade 03/10/21 500,000 03/10/23 0.160% 301 AGENCY-FFCB TD Ameritrade 06/23/21 1,000,000 03/23/23 0.180% $ 3,008,000 301 AGENCY-FHLMC TD Ameritrade 06/30/21 750,000 04/20/23 0.197% 301 AGENCY-FHLMC TD Ameritrade 04/25/22 770,000 04/20/23 2.072% 901 AGENCY-FHLMC TD Ameritrade 05/18/22 700,000 04/20/23 2.183% $ 2,220,000 301 AGENCY-FFCB TD Ameritrade 08/17/21 2,000,000 05/17/23 0.187% 301/303 AGENCY-FHLB TD Ameritrade 06/07/22 1,000,000 05/18/23 2.250% $ 3,000,000 901 AGENCY-FHLB TD Ameritrade 06/07/22 620,000 06/09/23 2.300% 901 AGENCY-FFCB TD Ameritrade 08/26/21 1,500,000 06/26/23 0.207% $ 2,120,000 901 AGENCY-FHLB TD Ameritrade 06/27/22 600,000 07/14/23 2.839% $ 600,000 222 TBILL Country Club 03/24/22 500,000 08/15/23 1.860% 301 AGENCY-FHLB TD Ameritrade 08/18/21 750,000 08/18/23 0.250% 301 AGENCY-FHLB TD Ameritrade 05/24/22 750,000 08/24/23 2.450% 301 AGENCY-FHLB TD Ameritrade 08/25/22 530,000 08/25/23 3.300% 901 AGENCY-FHLB TD Ameritrade 08/30/22 500,000 08/28/23 3.170% $ 3,030,000 901 AGENCY-FHLB TD Ameritrade 09/02/22 1,700,000 09/01/23 3.632% 901 AGENCY-FHLB TD Ameritrade 06/29/22 425,000 09/23/23 3.300% $ 2,125,000 301 AGENCY-FHLB TD Ameritrade 10/27/22 1,000,000 10/27/23 4.500% 301 TBILL Country Club 03/24/22 650,000 10/31/23 1.993% $ 1,650,000 301 AGENCY-FHLB TD Ameritrade 05/16/22 1,000,000 11/16/23 2.550% 301 AGENCY-FHLB TD Ameritrade 11/24/21 250,000 11/24/23 0.500% 901 AGENCY-FHLB TD Ameritrade 05/24/22 750,000 11/24/23 2.600% $ 2,000,000 901 AGENCY-FHLB TD Ameritrade 08/26/22 1,000,000 12/08/23 3.458% 301 AGENCY-FFCB Country Club 03/15/22 650,000 12/21/23 1.780% $ 1,650,000 301 AGENCY-FHLB TD Ameritrade 10/26/22 1,000,000 01/21/24 5.000% $ 1,000,000 222/301 TBILL Country Club 03/31/22 500,000 02/15/24 2.280% 901 FHLB TD Ameritrade 05/26/22 750,000 02/26/24 2.750% 222/301 TBILL Country Club 03/15/22 500,000 02/29/24 1.780% $ 1,750,000 301 TBILL Country Club 03/31/22 675,000 03/21/24 2.300% 301 AGENCY-FHLB TD Ameritrade 09/28/22 1,000,000 03/28/24 4.000% $ 1,675,000 301 AGENCY-FHLB TD Ameritrade 10/26/22 500,000 04/06/24 5.000% $ 500,000 901 AGENCY-FHLB TD Ameritrade 08/30/22 500,000 08/28/24 3.500% $ 500,000 Weighted Yield 1.827% $ 41,352,833