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Posted 12/14/07
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Supporting the Development of Housing

It takes partnerships to make things happen in our community. We have wonderful examples of partnerships between the City and various agencies within the City, region and State. In 2005, we embarked on a journey to build housing in our community. Over a five year period, we were expected to build approximately 6,000 housing units. The City Commission began action to develop subdivisions. They annexed over 1,400 acres of land and work began on approximately 56 housing subdivisions. To date, over 2,100 housing units have been permitted. The Commission used many tools to stimulate investment. Some of these tools were special assessment districts, neighborhood revitalization and the Kansas Rural Housing Incentive District.

The new development also stretched the City’s debt capacity. The City uses George K. Baum and Company for its fiscal advisor and Gilmore & Bell as our bond attorneys. Their mission is to provide guidance in managing the City’s debt. One of the ways to manage the debt is the Kansas Rural Housing Incentive Act.

The act has never been used in Kansas. It was approved by the legislature to stimulate housing in the rural areas of the state. The KRHIA provides for the capture of property taxes in a subdivision to assist with payment for infrastructure development. It is proposed in Junction City to pay for streets and storm sewers in four subdivisions. These are Mann’s Ranch, Sutter Woods, Sutter Highlands and Olivia Farms. The City Commission created a policy that only subdivisions with over 100 homes could use the program. The debt issued through this act does not count as City debt and does not require the taxpayers at large to make up any shortfalls if sufficient dollars are not collected to retire the bonds. The act does require the County Commission and the School Board to participate. The length of time for participation can be up to a maximum of 15 years. The School Board approved participating for the maximum 15 years. The County Commission will consider action at their December 17 meeting allowing for the issuance of the Rural Housing Bonds.

This is a win-win situation for all involved. The program protects the taxpayers at large. It captures property taxes that do not exist today. The new home construction that will occur in these subdivisions will create population growth. This means our sales tax will grow. Sales tax is the primary source of funding basic services for the City of Junction City. I will be talking more about this in future. . .

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