GO Bond Update

General Obligation Bond Update – November 2023

Structurally Fit

The Get Fit Plan Financially Fit

Economically Fit 2

Financially Fit TIF Projects

Fund Balance

• Reduced projects by 44% (18 to 10) • Reduced debt by 33% ($82M) • Eliminated all General Fund subsidies

• Increased General Fund reserves by 11%

Use of General Obligation Bonds • Blue Springs

• 2008: $35M (sewer facility improvements) & $28M (road and intersection improvements) • 2022: $35.5M (Special Obligation Bond for Aquatic Center)

• Lee’s Summit

• 2013: $7.5M (cultural arts & road improvements) • 2014: $10M (US 50 HWY & M-291 interchange improvements) • 2019: $19.5M (public safety initiatives) • 2023: $186M (emergency prep., transportation, city facilities)

• Raytown

• 2022: $7.2M (sewer improvements)

• Liberty

• 2015: $16,505,000 (South Liberty Parkway)

• Kansas City

• 2017: $800M (sidewalks, City facility upgrades, new animal shelter) • 2021: $175M (upgraded parks, rec. centers, convention facilities; affordable housing)

What is a General Obligation Bond?

• General Obligation bonds (GO bonds) are a means for the City to borrow money to pay for capital projects.

• The city pays back the bonds and interest through property taxes.

• Typically, the lowest possible interest rates for financing projects.

• Must be repaid within 20 years.

• Secured by full faith, credit and taxing power of City.

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The City has a Manageable Debt Load •Total non-utility debt (6/30/22): $132.6 M •Annual debt payments have decreased

• Decrease of $21.3 M from FY 22 to FY 23 • Decrease from FY 18 to FY 23: 12.5% to 6.7%

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A GO Bond Does Not Negatively Impact the General Fund •Significant efforts ongoing to stabilize City’s General Fund.

•General Fund supports operations. Very few capital expenses.

• Investing in our infrastructure using GO Bonds can grow our tax base and help grow the General Fund.

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Why Now? Deferred Maintenance currently exceeds $1B without a dedicated funding source

Public Buildings, $50,000,000

New Community Center, $75,000,000

Street Reconstruction and Overlay, $60,000,000

Bridges and Culverts, $15,000,000

Curbs and Sidewalks, $20,000,000

Historic Sites, $10,000,000

Proposed GO Bond Allocation

Park Improvement Program, $20,000,000

Street Reconstruction and Overlay - $60M

• $430M in deferred maintenance currently • $60M would address 367 Lane Miles (20% of total lane miles)

Bridges and Culverts - $15M 4 bridges currently closed due to condition

10 additional bridges must be repaired or replaced within the next 7 years or be closed. $15M will repair or replace all 14 bridges and culverts.

Sidewalks

Curbs and Sidewalks $20M

• $21.4M replacement cost • 1.7M linear feet of sidewalks citywide • Improve connectivity by completing Sidewalks to Schools program and sidewalks to any parks.

• Establish cost share program with property owners for sidewalk replacement Curb & Median Replacement • $200M+ replacement cost • 3.5M linear feet of curbs citywide • Curb replacement for most deteriorated sections throughout City.

• Median replacement in commercial corridors

Curbs & Sidewalks - $20M

Historic Sites - $10M • Vaile Mansion • Bingham Waggoner • MO Model RR Museum (former National Frontier Trails Museum building) • 1827 Log Courthouse • Old Firehouse #1

Parks Improvement Program $20M • Currently $153M in total needs • Most Priority 1 needs addressed • Redoing trails • Updating playgrounds • Revitalizing community favorites such as the Independence Athletic Complex and George Owens Nature Park

City Hall • Renovation no longer a viable option Sermon Center

Public Buildings Needs

• $10M+ for HVAC systems, roofing, flooring, water infiltration repairs Animal Shelter • Own vs. Rent - control our ability to make repairs Police HQ • Renovation no longer viable option

2002 Parks Master Plan • Recommended new family aquatics center and new indoor recreation center.

• Community desire for more programs: festivals, adult fitness, concerts, recreational swimming, youth sports, and senior adult programs.

• THIS COMMUNITY HAS KNOWN WHAT IT WANTS FOR 21 YEARS!

2010 Parks Master Plan • Individual fitness is identified as the highest individual need.

• Sermon Center rated as “low” for the ability to accommodate programming.

• “ There is a lack of modern indoor facilities such as a dedicated walking track, dedicated space for exercise classes, a leisure pool, dedicated fitness center and storage space for recreational and theater activities.”

• Recommended that City complete feasibility study to plan for future needs.

• “Research indicates that the community would support a new recreation center with a large fitness component.”

New Community Center - $75M

Economic Impact • The Square experiences 1.1 million visits per year • City Hall experiences approximately 9,800 visitors (28,000 visits) annually • 650 (2.3%) of those visits lead to another visit within the Square.

• Overall, City Hall drives .05% of visits to businesses on the Square.

• In comparison on an annual basis: • Pharoah Cinema has 7,500 visitors • Truman Visitors Center and 1859 Jail has 8,700 visitors • Three Trails has 11,300 visitors • Sermon Center has 19,500 visitors • And Truman Courthouse has 106,000 visitors

2018 Study • Relocate Police to new campus sharing space with utilities • 124,875 sq. ft.

• $255/sq. ft.

• Total Cost in 2018: $37.1 million

2023 Updates: • 2023: $651/sq. ft

• Total Cost in 2023: $120M

Independence Utilites Center Police Headquarters

GEHA Building

Large-scale area opened for redevelopment

11+ acres for redevelopment

Downtown Redevelopment • Opens 11+ acres of current City-owned land for redevelopment.

• Saves GO debt for recreational facility.

• Optimizes resources and increases operating efficiencies by co-locating City users.

Public Buildings - $50M • Purchase IUC site for build-out of new Justice Center complex ($42M) • Animal Shelter Purchase and Improvements ($5M) • Public Building Maintenance ($3M)

• Creates opportunity to build a $75M community center

Public Buildings Plan Benefits

• Provides Police with Justice Center campus • Drives greater economic activity on the Square • Creates private investment opportunities

• Consolidates city operations – one-stop shop for citizens • Backfills vacant/underutilized space in the community • Improves employee recruitment/retention

City Tax Levy (Per $100 Assessed Valuation) $1.60

$1.40

$1.20

$1.00

$0.80

$0.60

$0.40

$0.20

$0.00

Raytown

Independence

Blue Springs

Sugar Creek

Grain Valley

Grandview

Lee's Summit

Kansas City (Jackson County)

How much will it cost?

Bond Issue Size Est. Annual Debt Service Required Levy Per $100 Monthly Cost on Median Home Daily Cost on Median Home

$300M $23,524,100 $1.2940 $26.72 $0.88

$275M $21,563,758 $1.186 $24.49 $0.81

$250M $19,603,417 $1.078 $22.26 $0.73

$225M $200M $17,643,075 $15,682,733 $0.970 $0.863 $20.03 $17.82 $0.66 $0.59

Monthly Cost Comparison 5 QT Classic Pretzels

5 Big Q Fountain Drinks

$22.47

Bond Election Requirements •City must obtain super-majority approval (4/7th or 2/3rd) • Recommendation: April 2025 Election Date Even Numbered Years (1st Tues. after 1st Mon.)

Odd Numbered Years

February

2/3 (66%)

April

4/7 (57%)

June

2/3 (66%)

August

4/7 (57%)

2/3 (66%)

November

4/7 (57%)

2/3 (66%)

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Recommendations

Pursue $250M GO Bond Issue April 2025

Consolidate most city services

Street Reconstruction and Overlay: $60M

Maximize downtown real estate as economic engine

Bridges & Culverts: $15M

Provide space for much needed and requested Community Center/Recreation Complex

Curbs and Sidewalks: $20M

Historic Sites: $10M Park Improvement Program: $20M New Community Center/Recreation Complex: $75M Public Buildings: $50M