City says no to 223rd St. funding

By Jennifer McDaniel, jennifermcdaniel@miconews.com

Spring Hill City Council members have turned down a request made this summer by Miami County officials to chip in $750,000 toward the completion of improvements, including a railroad underpass, on 223rd Street east of Spring Hill. (Photo by Jennifer McDaniel)

Spring Hill City Council members have rejected a request made this summer by Miami County officials to help fund a multi-million dollar improvement project for 223rd Street, which includes the construction of a railroad underpass east of the city limits to ease congestion and keep traffic flowing.

The council reached a consensus during its meeting Thursday night to forego funding the project.

Originally, the project involved construction of a railroad underpass, relocating the intersection of 223rd Street and Woodland Road about 400 feet to the east, widening 223rd Street to four lanes with a raised median between Dunn Drive and the new Woodland Road intersection, and installing storm-water drainage structures, curbs, gutters and sidewalks.

But when the initial round of project bids came in at $1.4 million more than originally budgeted this spring, the project stalled as county staff modified plans to reduce costs.

The most significant of the changes was to modify the original plan from a four-lane to a two-lane road. County Engineer Penny Evans told city officials the county planned to build the road as a two-lane in a four-lane footprint so it could be expanded later on along with the additions of curbs, gutters and sidewalks. The road would feature a six-inch asphalt surface, rather than the 12 inches originally planned.

The county plans to rebid the project in September. Evans’s goal, she said, is to reduce project costs so the improvements total approximately $5 million.

But along with those changes, county officials also asked city council members last month to contribute $750,000 toward the project’s completion.

While the county received project funding from several entities, including approximately $3.95 million from the Kansas Department of Transportation, it still needed the additional $750,000 to offset costs, County Administrator Shane Krull told council members in June. That figure, he said, was based on the investment the county already had in the project and the benefits the city would receive from it.

The county has already paid $1.3 million for the project, not including other outstanding balances, Evans said.

Despite a few uncertainties, Evans said she was optimistic the potential cost-savings realized in the redesign will be between $850,000 and $1.3 million.

Before making a decision, city council members requested City Administrator Jonathan Roberts prepare cost breakdowns in various dollar amounts from $400,000 to $750,000 along with different funding methods from mill levy increases to general obligation bonds. That study was completed a few weeks later, giving the city six possible options to help fund the project.

In a memo to Roberts, Tom Kaleko, senior vice president with Springsted, a Kansas City-based financial advising firm, outlined six potential funding options, ranging from finding new sources of revenue to developing a benefit district.

Other options Kaleko suggested included a property tax increase of 1.6 mills to fund the requested amount through general obligation bonds. Since the area for improvement is outside the city limits, Kaleko said the city would have to show that the project would significantly benefit the city. However, raising taxes, he said, would lessen any chance of a levy increase for other city priorities.

Other alternatives included a sales tax increase. The city, he said, could increase its general purpose sales tax by 1 percent with no sunset date, or it could issue a special sales tax of up to 1 percent that would not exceed 10 years. At 2007 tax collection rates, the city would have to issue one-fifth of 1 percent to collect the needed revenue.

Another option was to dip into the city’s cash reserves, but Kaleko cautioned the timing was unfavorable, and officials may need those funds to weather a slowing economy.

Council Member Chris Leaton said he did not favor funding and only would be willing to put money toward the project if it “went beyond” what was initially designed.

“The council took the focus off what it wanted to do, to improve 223rd Street at Harris and Webster for this,” Leaton said. “They took the focus off what we thought was a priority. I felt like they jerked us around.”

Council Member Rick Hanson said he was uneasy with all of the funding options presented to the council, especially when the city has other improvements officials must fund.

“There’s just nothing here that I’m comfortable with, with what we need to do,” Hanson said.

“As much as we desire the project being completed, we just don’t have the funds,” said Spring Hill Mayor Mark Squire. “I can’t believe the county commission, with as much money that has already been put into it, that it (won’t) get done. I think we need to communicate to the county that we’re unable to find the funding — that even though we support the project and believe in the necessity of the project, unfortunately we don’t have the funds to apply to it.”