focus area: Economy
Staff Contact: Jamie Robichaud/John Page
Subject: Report from the Street Maintenance Sales Tax (SMST) Oversight Committee on the 2023 activities.
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title:
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Report from the Street Maintenance Sales Tax (SMST) Oversight Committee on the 2023 activities.
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Summary:
On November 12, 2013, the citizens of Olathe approved a 10-year, 3/8 cent Street Maintenance Sales Tax, which the City began collecting on April 1, 2014. The purpose of the sales tax revenue is to finance the cost of repairing, rebuilding, rehabilitating, upgrading, and improving streets in the City of Olathe.
On February 18, 2014, the City Council enacted Resolution No. 14-1020 that adopted the charter creating the Street Maintenance Sales Tax Finance Oversight Committee. The Street Maintenance Sales Tax (SMST) Finance Oversight Committee is an advisory body tasked with the annual review of the 3/8 cent sales tax-related revenues and expenditures during its term.
On April 25, 2023, the residents of Olathe voted to renew the SMST for another 10-year period. On June 6, 2023, the City Council approved Ordinance No. 23-12 levying the renewed sales tax.
The Committee’s specific duties include annually reviewing the SMST income and expenditures to ensure the SMST revenues were expended consistently with the voter-approved street maintenance sales tax referendum. The committee is charged with providing an independent report (Attachment A) to the City Council regarding the revenue and expenditures of the Street Maintenance Sales Tax.
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Financial Impact:
In 2023, $16,522,283 was collected in SMST revenue which is dedicated for the street preservation program. Interest income for the year totaled $550,722. Total annual revenue was $17,073,005. The SMST funded $20,000,000 in 2023 expenditures to SMST projects.
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Action Needed:
Accept the report.
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Attachment(s):
A: 2023 SMST Annual Report