Lenexa is growing its capital improvement program by $15 million, earmarking most of the new infrastructure funds toward transportation, stormwater and city facility improvement projects.
The Lenexa council on Tuesday unanimously approved the city’s capital improvements program for 2019-2023. The program allocates $155 million to 38 projects on city-owned streets and property.
Doug Robinson, chief financial officer for Lenexa, said the primary uses of funding for the recommended capital improvements program are $106 million (or 68 percent of the program) in projects for streets, bridges and traffic; $18 million (or 12 percent) in stormwater projects; and $13 million (or 9 percent) in facility projects.
Three of the projects from 2019 to 2023 make up more than half of the projected expenditures. These are:
- Pavement management program ($33 million)
- Improvements to Ridgeview Road from Prairie Star Parkway to K-10 Highway ($30 million)
- Stormwater infrastructure replacement ($17 million)
Robinson said the capital improvements fund is $15 million more than the city’s most recent CIP because the city added 11 new projects, including:
- 87th Street Parkway improvements (from Renner Boulevard to Maurer Road)
- Quivira Road improvements (from 75th Street to 87th Street Parkway)
- replacement of mobile/portable radios for the fire and police departments
The final CIP includes one additional project that was added Nov. 6, after a public hearing in October. A developer will build a public parking garage and outdoor entertainment area in City Center East; the city will provide the developer with an economic development grant of $3 million, paid from the capital improvements fund.
The council also unanimously approved transferring $6 million from the general fund this fiscal year to the capital improvements fund for next year. Staff will use $5.5 million to help finance improvements on the Fleet Maintenance Facility, while the remaining $500,000 will go toward the general capital improvements fund.
Robinson said the city is able to make the $6 million transfer because of strong revenues from 2017 and 2018. By paying for projects in cash up front, the city will pay less in interest in the long run, he added.
There was no discussion or public comment on the capital improvements program.
Funding for the $155 million program comes the following revenue sources:
- General Fund revenues ($50 million, or 32 percent)
- General obligation bonds for general and special benefit district projects ($37 million, or 25 percent)
- A 3/8-cent sales tax ($17 million, or 11 percent)
- External grants ($12 million, or 8 percent)
- Stormwater revenues ($10 million, or 6 percent)
The debt service property tax rate is an estimated 6.844 mills for fiscal year 2019 and 6.300 mills for fiscal years 2020 through 2023, according to a Dec. 4 city memo from Robinson. This year, the debt service property tax rate was 7.941 mills. Lenexa’s total mill levy is 31.832.
The stormwater equivalent dwelling unit rate remains the same as this year, at $109 per equivalent dwelling unit.
The fees generated from the EDU rate are used to fund stormwater operations and projects (through pay-as-you-go financing as well as principal and interest payments on general obligation bonds), according to the memo.