License Tax Review Committee

AGENDA Raymore License Tax Review Committee Annual Meeting City Hall – 100 Municipal Circle Wednesday, July 15, 2026 6:00 PM [IGNORE_INDENT] 1. Call to Order 2. Roll Call 3. Consideration of the Minutes of the July 23, 2025 Meeting A. July 23, 2025 Minutes 4. Staff Report A. 2025 Annual Report 5. Business Items A. Consideration of Staff Recommendations 6. Public Comment 7. Member Comment 8. Adjournment Any person requiring special accommodation (i.e., qualified interpreter, large print, hearing assistance) in order to attend this meeting, please notify this office at (816) 331-3324 no later than forty eight (48) hours prior to the scheduled commencement of the meeting. Hearing aids are available for this meeting for the hearing impaired. Inquire with the City Clerk, who sits immediately left of the podium as one faces the dais. Page 1 of 13 MINUTES OF THE LICENSE TAX REVIEW COMMITTEE MEETING HELD WEDNESDAY, JULY 23, 2025, AT RAYMORE CITY HALL. Mayor Pro Tempore, Sonja Abdelgawad, called the meeting to order at 6:03 p.m. Present were members: Jack Hopkins, Kerrie O’Connor, Elisa Williams and Sonja Abdelgawad. Others present included Development Services Director David Gress. Gib Good was absent. The minutes of the July 24, 2024 License Tax Review Committee meeting were accepted into the record with a motion by Jack Hopkins, second by Kerrie O’Connor. Vote 4-0 Passed and 1 absent. The staff report was presented by Ms. Williams. This included a review of the revenue summary for 2024 with discussions and questions on the items. Following was a review of the expenditure summary for 2024. Ms. Williams presented the staff recommendations to the committee. The recommendations included: A.​ Increasing the rate by 1.024 per the construction cost index (CCI) inflation for the most recent period, for the 2026 fiscal year beginning November 1, 2025. This would result in the following rates: ●​ $2,494 x 1.024 = $2,554 ●​ $667 x 1.024 = $683 There was limited discussion. Jack Hopkins moved, seconded by Kerrie O’Connor to accept staff recommendations on the rate increase and forward to the City Council. Vote 4-0 Passed and 1 absent . There were no public comments or further comments. Kerrie O’Connor moved, seconded by Jack Hopkins to adjourn the meeting. Sonja Abdelgawad adjourned the meeting at 6:13 p.m. Respectfully submitted, Elisa Williams Page 2 of 13 2025 EXCISE TAX REVIEW ANNUAL REPORT July 15, 2026 Page 3 of 13  2025 EXCISE TAX REPORT TO THE CITY COUNCIL INFORMATION AND DATA I.​ BACKGROUND Purpose The purpose of the excise tax is to provide a funding mechanism for the construction and improvement of streets necessary to accommodate traffic generated by the growth and development of the City. The excise tax system implements a “fair share” approach by which new development in residential areas and tax incentive districts that generates additional traffic pays its proportional cost of required street improvements in the City. ●​ Any person who obtains a residential building permit for a structure that will generate additional traffic on City streets is subject to the excise tax. ●​ Any person who obtains a building permit for a non-residential structure in an area that is in an established City economic development incentive district is subject to the excise tax. ●​ A person who obtains a building permit for a non-residential structure in an area that is not in an established City economic development incentive district is not subject to the excise tax. Projects to be funded by the excise tax include those identified on the Transportation Plan Map of the Growth Management Plan, and designated in the City’s Capital Improvement Program (CIP) as funded through this revenue source. The thoroughfare plan identifies a network of “major” streets that would be required to accommodate the future traffic needs in the City of Raymore. The CIP will specify each of the streets to be funded, the amount of funding allocated for the project, and the timeframe for construction of the improvements. The following is a brief summary of significant events involving the adoption and implementation of the excise tax. History January 2000 Excise Tax Ordinance for Development that Generates New Traffic adopted by City Council February 2000 Excise tax system approved by voters April 2000 Excise tax imposed on all applicable building permits; Interim escrow system repealed May 2000 Administrative guidelines applicable to excise tax adopted by City Council (Adequate Public Facilities and the Excise Tax, and Advancing Projects) September 2001 Deadline to receive the plat credit March 2002 Ordinance amended to allow payment of tax for non-residential uses at the time of certificate of occupancy Page 4 of 13 April 2003 Ordinance amended to modify the date set for the annual review to the 4th Monday in July, and the date for the implementation of rate changes to November 1 October 2004 Resolution adopted establishing excise tax rates of $1,250 per trip for residential development, and $300 per trip for non-residential development November 2006 License tax rates of $1,500 per trip for residential development, and $400 per trip for non-residential development become effective November 2007 The 7th Edition of the ITE Trip Generation Manual Trip Generation Table went into effect. November 2008 The excise tax rates were increased to $1,608 per trip for residential development and $429 per trip for non-residential development. These rates reflected an increase of 7.19%, which was the Construction Cost Inflation Index for the period June 2007 through June 2008. The policy of adjusting rates according to the index was recommended by the License Tax Committee and accepted by the City Council in 2006. November 2009 The excise tax rates were increased to $1,687 per trip for residential development and $450 per trip for non-residential development. These rates reflected an increase of 4.9%, which was the Construction Cost Inflation Index for the period June 2008 through June 2009. November 2010 The excise tax rates were increased to $1,724 per trip for residential development and $460 per trip for non-residential development. These rates reflected an increase of 2.18%, which was the Construction Cost Inflation Index for the period May 2009 through May 2010. November 2011 The excise tax rates were increased to $1,777 per trip for residential development and $474 per trip for non-residential development. These rates reflected an increase of 3.1%, which was the Construction Cost Inflation Index for the period May 2010 through May 2011. March 2012 In March of 2012, the City Council repealed the Commercial Excise Tax for businesses not located within Incentive Districts of the City. June 2012 The License Tax Committee voted to recommend no increase in the excise tax rates, which remained at $1,777 per trip for residential development and $474 per trip for Page 5 of 13  non-residential development in incentive district areas for the FY 2012-13. June 2013 The License Tax Committee voted to recommend an increase in the excise tax rates to $1,820 per trip for residential development and $485 per trip for non-residential development. These rates reflected an increase of 2.43%, which was the Construction Cost Increase for May 2012 to May 2013. June 2014 The License Tax Committee voted to recommend an increase in the excise tax rates to $1,839 per trip for residential development and $490 per trip for non-residential development. These rates reflected an increase of 2.9%, which was the Construction Cost Increase for May 2013 to May 2014. June 2015 The License Tax Committee voted to recommend an increase in the excise tax rates to $1,874 per trip for residential development and $500 per trip for non-residential development. These rates reflected an increase of 1.9%, which was the Construction Cost Increase for May 2014 to May 2015. June 2016 The License Tax Committee voted to recommend an increase in the excise tax rates to $1928 per trip for residential development and $515 per trip for non-residential development. These rates reflected an increase of 2.9%, which was the Construction Cost Increase for May 2015 to May 2016. June 2017 The License Tax Committee voted to recommend an increase in the excise tax rates to $1982 per trip for residential development and $529 per trip for non-residential development. These rates reflected an increase of 2.8%, which was the Construction Cost Increase for May 2016 to May 2017. July 2018 The License Tax Committee voted to recommend an increase in the excise tax rates to $2053 per trip for residential development and $548 per trip for non-residential development. These rates reflected an increase of 3.6%, which was the Construction Cost Increase for May 2017 to May 2018. Page 6 of 13 July 2019 The License Tax Committee voted to recommend an increase in the excise tax rates to $2100 per trip for residential development and $561 per trip for non-residential development. These rates reflected an increase of 2.3%, which was the Construction Cost Increase for May 2018 to May 2019. June 2020 The License Tax Committee voted to recommend an increase in the excise tax rates to $2135 per trip for residential development and $570 per trip for non-residential development. These rates reflected an increase of 1.65%, which was the Construction Cost Increase for January 2019 to January 2020. July 2021 The License Tax Committee voted to recommend an increase in the excise tax rates to $2179 per trip for residential development and $582 per trip for non-residential development. These rates reflected an increase of 2.06%, which was the Construction Cost Increase for January 2020 to January 2021. July 2022 The License Tax Committee voted to recommend an increase in the excise tax rates to $2353 per trip for residential development and $629 per trip for non-residential development. These rates reflected an increase of 7.99%, which was the Construction Cost Increase for January 2021 to January 2022. July 2023 The License Tax Committee voted to recommend an increase in the excise tax rates to $2469 per trip for residential development and $660 per trip for non-residential development. These rates reflected an increase of 4.93%, which was the Construction Cost Increase for January 2022 to January 2023. July 2024 The License Tax Committee voted to recommend an increase in the excise tax rates to $2494 per trip for residential development and $667 per trip for non-residential development. These rates reflected an increase of 1.0102%, which was the Construction Cost Increase for April 2023 to April 2024. Page 7 of 13  July 2025 The License Tax Committee voted to recommend an increase in the excise tax rates to $2,554 per trip for residential development and $683 per trip for non-residential development. These rates reflected an increase of 1.024%, which was the Construction Cost Increase for June 2024 to June 2025. License Tax Rates Rates are established by resolution of the City Council. The vote approving the excise tax authorized a rate not to exceed $3,000 per vehicle trip. The rate for non-residential development is less than the residential rate because non-residential uses generate additional tax revenues (such as higher property tax assessments and taxes paid against them, personal property taxes on business equipment, and sales taxes) that are used by the City to construct streets. The amount of tax is calculated by multiplying the excise tax rate by the total number of new trips generated by the building activity. The total number of new trips or “trip generation rate” is determined by reference to a trip generation table adopted by the City. The trip generation table includes various types of land uses and is based on nationally accepted standards in the Trip Generation Manual published by the Institute of Transportation Engineers. ●​ For residential property the trip generation rate is determined by multiplying the number of dwelling units by the number of peak trips specified for the specific type of land use category. ●​ For non-residential property the trip generation rate is determined by dividing the total floor area of the building, measured in square feet, by one thousand (1,000), and then multiplying that number by the number of peak trips specified for the specific land use category. The number of peak trips has been reduced where appropriate to account for “pass by” trips. Pass by trips are those trips that are the result of a vehicle passing by the development which was not the original destination point and that enters the development, while not diverting from the primary path (spontaneous stop). Annual Review As outlined in the Raymore City Code, the City Manager, with the assistance of staff, prepares an annual report on the subject of the excise tax for the prior calendar year. The report is presented to the License Tax Review Committee, composed of five (5) members appointed by the Mayor with the advice and consent of the City Council. The Committee’s primary purpose is to review and comment on the annual report prepared by the City Manager, and forward those results to the City Council. The Excise Tax Ordinance requires that the annual review be completed by the fourth (4th) Monday of July of each year, and Page 8 of 13 that any changes to the tax rate be implemented on November 1. This report has been prepared and submitted in compliance with this requirement. The Excise Tax Ordinance provides that the report shall address the following items: 1.​ Recommendations on amendments, if appropriate, to this Article. Any increase in the excise tax rates shall become effective on November 1 of the calendar year in which the rates are increased; 2.​ Proposed changes to the excise tax calculation methodology, including the trip generation estimates and the land use categories, if appropriate; 3.​ Analysis of costs and revenues resulting from the excise tax imposed pursuant to this Article; 4.​ The status of the implementation and administration of this Article; 5.​ A summary of the appeals taken from the imposition of the excise tax imposed pursuant to this Article. Committee Membership The membership of the Committee appointed by the City Council for two-year terms and until a successor is appointed consists of: Member​ ​ Term Date​ ​ ​ Position Thomas Circo ​ 2027​ ​ ​ ​ City Council Representative Gib Good​ ​ 2027​ ​ ​ ​ Developer Representative Jack Hopkins​ ​ 2027​ ​ ​ ​ Citizen Representative Kerrie O’Connor​ 2027 ​ ​ ​ ​ Citizen Representative Elisa Williams​​ 2027​ ​ ​ ​ City Staff Representative II. ​ FINANCIAL ANALYSIS Annual Revenue History The following is a summary of revenues deposited into the Excise Tax Fund since the inception of the tax, including the total for calendar year 2023. Year Revenue 2000 $15,215 2001 $83,678 2002 $314,520 2003 $410,070 2004 $436,600 2005 $744,564 2006 $1,011,035 Page 9 of 13  2007 $845,281 2008 $310,275 2009 $329,142 2010 $238,223 2011 $226,299 2012 $236,085 2013 $471,041 2014 $374,731 2015 $317,406 2016 $446,662 2017 $629,698 2018 $466,114 2019 $402,915 2020 $707,051 2021 $501,376 2022 $1,220,612 2023 $726,251 2024 $901,476 2025 $883,118 Total $13,249,438 2025 Financial Summary Revenue Permit Excise Tax $ 698,352 Interest $ 134,766 Transfer from Trans. Fund $ 50,000 $ 883,118 Expenditures Interest Expense $ 0 Admin/Inspection $ 12,000 Design $ 97,624 Construction $ 256,364 Other $ 0 Transfer to Transportation $ 100,000 $ 465,988 Expenditure Summary Page 10 of 13 The Excise Tax expenditures during the calendar year 2025 are associated with three projects; $97,624 for Dean Ave access management, $56,364 for 163rd Street to Madison project and $12,000 for FY25 Street Preservation. Building Permit Summary The following is a summary of permits by type in 2025 that paid the excise tax, and the revenue generated. Type Number Revenue Residential 172 $434,106 Commercial 5 $264,246 Totals: 177 $698,352 III.​ ADMINISTRATIVE REVIEW Appeals/Credit Requests The Excise Tax Ordinance provides that building contractors may appeal the assessment of the excise tax. In 2025, there were no appeals to the excise tax assessed on any business or residential unit to which it applied. Ten Year Road Plan A copy of the excise tax projects page from the 2025-2026 CIP is attached as Appendix 1. This schedule represents the 10-year road plan as referenced in the excise tax ordinance. IV.​ RECOMMENDATIONS Rates City staff recommends that the current rates of $2,554 per trip for residential development and $683 per trip for non-residential development in incentive districts be increased by the construction cost index (CCI) for Kansas City for the period June 2025 through June 2026. This method has been the method used/recommended by the License Tax Review Committee for the past fifteen years. That increase would be 3.0%. This would equate to an increase in the Excise Tax Rates as follows: Residential: ​ $2,554 X 1.03 = $2,631 Non-Residential: ​ $683 X 1.03 = $703 V.​ LICENSE TAX COMMITTEE ACTION Page 11 of 13  APPENDIX 1 EXCISE TAX PROJECT SUMMARY 10-YEAR ROAD PLAN The 10-Year Road Plan lays out a plan for the use of funds accumulated in the Excise Tax Fund. Chapter 605 of the Raymore Municipal Code provides for the collection and administration of the Excise Tax. Section 605.050, Findings, Purpose, Intent and Authority, provides: ●​ “New growth and development in the City has resulted, and will continue to result, in increased usage, burden and demand on the existing streets of the City, and the need for construction of new streets to add capacity and to complete the street network planned to support full-build-out of the City.” [Section 605.050.A.3] ●​ “The City assumes the responsibility for, and is committed to, raising revenue for the design, construction, reconstruction repair and maintenance of adequate roads, streets and bridges necessary to serve the population of the City . . . “ [Section 605.050.A.4] ●​ “[The Excise Tax] is for the purpose of raising revenue, the proceeds of which shall be used for streets and related improvements throughout the City, including but not limited to the design, construction, reconstruction and improvements to streets, roads and bridges and related improvements in the City . . . “ [605.050.B.1] Page 12 of 13 Excise Tax (37) 2022-23 2023-24 2024-25 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Actual Actual Budget Projected Adopted Projected Projected Projected Projected Fund Balance Beginning of Year 1,471,279 1,414,567 1,360,741 1,314,852 1,157,500 1,454,430 1,495,319 1,629,191 1,758,426 Revenue Fees & Permits Commercial 67,915 236,180 141,008 0 0 0 0 Single Family 366,170 465,045 301,184 484,735 430,599 244,712 243,536 242,359 242,359 Multi-Family 0 0 0 - - - - Interest 94,559 167,393 68,037 128,331 128,331 58,177 52,336 48,876 52,753 Chgs for Services Miscellaneous 146,644 251,463 Transfer In Transportation Fund 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Transfer In Restricted Fund Developer Reimbursement 163rd Street Extention (Parkside) MHTC Governor's Cost Share Program 3,696,559 Total Revenue 725,287 1,170,081 419,221 4,500,633 608,930 352,889 345,872 341,235 345,112 Total Fund Bal & Revenues 2,196,567 2,584,648 1,779,962 5,815,485 1,766,430 1,807,319 1,841,191 1,970,426 2,103,538 Expenditures Debt Service Misc - Reimburse Vantrust Road Extension & 195th Street (MODOT) 3,645,985 General Fund Transfer 12,000 12,000 Capital Improvement Transfer Transfer to Transportation Fund 100,000 100,000 100,000 100,000 100,000 100,000 Capital Projects (Budgeted / reconciled) Dean Avenue - Hwy 58 to Lucy Webb Dean Avenue - Lucy Webb to Hubach Hill - - - - Dean Avenue/Lucy Webb Rd Intersection Improvement (9,934) Maintenance of Thoroughfare Routes 200,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 155th Street Reconstruction Traffic Study - North Cass Pkwy Turn Lane 58 Hwy to Foxridge (700,000) Intersection Improvements (58 Hwy & Foxridge) (100,000) Traffic Study - 58 Hwy & Dean Ave Kurzweil & Ward Rd Emergency Repair North Cass Pkwy/Dean Ave Traffic Signal & Intersection Improvements 120,000 115,729 Dean Avenue Access Management 350,000 500,000 500,000 Median at Kentucky & 58Hwy 200,000 200,000 163rd Street Extension - Parkside 1,200,000 Land Purchase for future Madison connection from 150hwy 440,000 Total Expenditures 782,000 1,269,796 1,012,000 4,657,985 312,000 312,000 212,000 212,000 212,000 Fund Balance (Gross) 1,414,567 1,314,852 767,962 1,157,500 1,454,430 1,495,319 1,629,191 1,758,426 1,891,538 Less: Reserve Balance () - - - - - - - Available Fund Balance 1,414,567 1,314,852 767,962 1,157,500 1,454,430 1,495,319 1,629,191 1,758,426 1,891,538 Page 13 of 13