RESOLUTION NO. 26-054 A resolution by the City Council of the City of wichita PERTAINING TO THE USE AND OVERSIGHT OF SALES TAX PROCEEDS TO establish THE HOUSING AND HOMELESS ASSISTANCE fund. WHEREAS, on December 16, 2025, the Wichita City Council approved an Ordinance calling for a Special Election to occur on March 3, 2026, for Wichita voters to approve the levying of a one percent retailers' sales tax; and WHEREAS, the Ordinance provided that, if approved, a special one percent (1.0%) city-wide retailers' sales tax will take effect on July 1, 2026, terminating no later than June 30, 2033. It is estimated that approximately $850 million will be collected by implementation of the sales tax; and WHEREAS, the revenue generated is to be utilized for Public Safety (not to exceed $225 million), Homeless and Housing Services (not to exceed $150 Million), the Revitalization of Century II (not to exceed $25 million) and Convention Center Expansion (not to exceed $225 million), Property Tax Relief (not to exceed $150 million), and the Development and Construction of a new Downtown Public Performing Arts Center (not to exceed $75 million); and WHEREAS, it is the desire of the City Council to establish guidelines and priorities for the expenditures of sales tax proceeds for establishment of the Housing and Homeless Assistance Fund as set forth on the ballot to ensure that sales tax revenue funds are utilized in compliance with the stated purpose and use of sales tax proceeds. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS: SECTION 1. The ballot provides that an amount not to exceed $150 million dollars of sales tax proceeds will be used to establish a restricted-special (permanent) fund, with earnings from such fund to be reinvested into this special fund, to support Homeless and Housing Services by funding affordable housing projects and programs, shelter facilities, a multi-agency center and its operations and related services for people experiencing homelessness. SECTION 2. Fund Established. The City Council hereby establishes the Housing and Homeless Assistance Fund. SECTION 3. Purpose. The purpose of the Housing and Homeless Assistance fund is to: a. Reduce and prevent homelessness by funding programs and services that support physical and mental health care, emergency housing, permanent housing, job counseling substance use disorder treatment, short-term rental subsidies and related services. b. Fund the construction and renovation of affordable housing. c. Collect and analyze data to evaluate the effectiveness of programs funded by the tax imposed by this Ordinance. d. Fund comprehensive homeless services including but not limited to: § Homeless prevention programs including but not limited to seniors, families with children and veterans § Subsidized housing § Rapid Rehousing § Interim/bridge housing for those experiencing homelessness § Expedited placements in permanent housing § Enhanced emergency housing and interim housing § Affordable housing § Preservation of affordable housing § Development of affordable housing for families and individuals § Stable interim supply of housing e. Reduce displacement of renters and homeowners who cannot afford prevailing housing costs and those on fixed incomes, promote long-term affordability and neighborhood ability and avoid increased concentration of poverty. f. Support exploration of new financing models and the benefits of cross-subsidization and mixed income development to catalyze additional affordable housing for owners and renters. It is intended to fund proven and innovative homelessness prevention programs and housing solutions including mental health services and programs to make housing more affordable. SECTION 4. Fund Expenditures. Revenue received in this fund will be used on the following programs designed to serve demonstrated community housing needs: a) To increase the long-term supply of affordable housing units (rebuild, remodeled or new construction) or prevent displacement of cost-burdened households through production; preservation, financed, acquisition, conversion, renovation, subsidies or any other methods; b) To provide financial and service-related assistance to renters and other persons in need of housing; and c) To support homebuyer and/or homeowner assistance programs designed to service individuals at or below 80% of the area median income including but not limited to programs to ensure preservation of housing, programs to reduce housing costs for homeowners and persons seeking to purchase homes and support for homeowner investments to expand affordable housing supply. SECTION 5. The Housing and Community Services Department Director will be responsible for the distribution of funds for projects as specified in this Resolution and provide recommendations for adjustment in funding allocations as required. SECTION 6. The Director with input from the Affordable Housing Review Board will develop best practices for standardization of care, including but not limited to connections to behavioral and mental health, medical care and other services. These best practices should include guidance and key performance indicators for contractor and Funding Recipients. Services funded should aim to create connections to mainstream safety net programs supported by other funds from the County, State and Federal governments. Funding for programs and services should be allocated according to need and equality considering factors such as point-in-time count or other similar measures of the population experiencing homelessness or housing instability. SECTION 7. Budgeting. Each year, on or before March 1, beginning in 2027, the Affordable Housing Review Board will take comments from the public and make recommendations regarding annual plans for the use of funds. The plan must include a prioritization plan for the distribution for funding according to demonstrated community needs. SECTION 8. Reporting. The Housing and Community Services Department Director shall provide annual reports to the City Council regarding fund allocations and performance outcomes from sales tax proceeds. SECTION 9. Accountability Measures. Each Funding Recipient shall provide, at a minimum, the Housing Services Department Director a report by April 1 of each year stating: a) The amounts of tax that the Funding Recipient received and spent in the previous fiscal year; b) The status of any project or work of that Funding Recipient funded by the proceeds of this tax; c) The funds carried over from previous years and to be caried over to future years; and d) All Funding Recipients must report to the Homeless Management Information System. SECTION 10. Funding reports shall be made available for public inspection and posted on the City's website. SECTION 11. The Housing and Community Services Department Director shall annually compile these reports and file the compilation of such reports with the internal auditor. The auditor shall annually prepare and transmit to the City Council a report on all receipts and expenditures in the preceding fiscal year. SECTION 12. Funding Recipient Selection Process. 1. The City Council anticipates that after consultation with stakeholders, potential service providers and subject matter experts, funding will be allocated in an approach that balances a range of housing and shelter options with appropriate support services, while also providing the resources to support the physical infrastructure needed to provide treatment and related services. 2. Service providers will be selected pursuant to a competitive funding process, requiring regular reporting on program performance relative to specific, quantifiable metrics and a periodic review of overall program effectiveness. Capital investments will be subject to a competitive funding process, including an assessment of the effectiveness of the services currently offered, or to be offered at a new or expanded facility. 3. When evaluating progress towards these goals, the following key system performance metrics should be considered, in addition to any other metrics determined by the Housing and Community Services Department Director or the Housing Affordability Board: a. Creating a standardization of basic services to bring people inside and ensure that people have access to social service, medical care and behavioral/mental health care. b. Establishing a homeless service delivery system more accessible to all communities. c. Meeting regional housing needs for Lower Income Households. d. Increasing accountability and transparency as to the use of public funds. SECTION 13. Priority Allocations. Priority Allocations. The City Council recognizes the need for long term continued funding for housing assistance and homeless prevention programs. 1. Due to chronic community needs for temporary housing and low barrier homeless shelters, funding for operators of low barrier homeless shelters and the multi-agency center must occur within the first year of sales tax collections. It is the intent of the City Council that an amount not to exceed $690,000 in 2026 and $2.75 million in fiscal year 2027 will be allocated to operators of low barrier homeless shelters and the multiple agency center. 2. Recommendations for future funding and the funding level for low barrier homeless shelters and the multi-agency center will be made by the Housing and Community Services Department Director, with input from the Affordable Housing Review Board, and the low barrier shelter and/or multi-agency meeting established performance standards. 3. In addition, to meet immediate community needs, $1 million of sales tax funds will be distributed to support "wrap-around" housing programs during the fiscal year 2027. Such programs as those for homeless outreach, housing navigation – to get people into housing, case management, programs to connect individuals to mental health, substance abuse, medical, employment, and other services, landlord incentives and risk mitigation funds and homeless prevention. 4. Recommendations for future funding and the funding levels for these programs will be made by the Housing and Community Services Department Director, with input from the Affordable Housing Review Board and the programs meeting established performance standards. 5. All Fund earnings are to be reinvested into the Wichita Housing and Homeless Assistance Fund. 6. Further, it is the intent of City Council to provide truly affordable housing for the residents of the City of Wichita. In the first three years of sales tax collection, this funding must be leveraged from other State and Federal housing funding and subsidies available from various sources. Once funds become available, funding recommendations and the appropriate funding level for these programs will be made by the Housing and Community Services Department Director, with input from the Affordable Housing Review Board and the programs meeting established performance standards. 7. It is the goal of the City Council to build a housing continuum to serve residents across a range of incomes, ages and needs, developing housing that is affordable to residents of all income levels, and preserving existing affordable housing. SECTION 14. Oversight. 1. The Affordable Housing Review Board will provide input and make recommendations regarding the expenditure of funds to be allocated. 2. Sales tax revenue collected by the City will be invested, consistent with the City's Pooled Fund Investment Policy. 3. Expenditure of sales tax proceeds shall be guided by the sales tax oversight and sales tax program policy guidelines or "guardrails" as approved, by Resolution, by the City Council. 4. As with other sales tax projects, all housing services capital improvement projects funded with sales tax revenue will be financed as "pay as you go" projects. 5. All contracts will be awarded following compliance with the City's purchasing and procurement processes. Unless approved by vote of the City Council, no-bid or sole-source contracts are not permitted. No special treatment in the awarding of contracts or funds will be given to any business, entity, or organization. SECTION 15. The implementation plan and priorities set forth by the City Council in this Resolution may be amended by the City Council as new information arises or other changes occur over the life of the enumerated project. SECTION 16. The City is dedicated to working with the community and maintaining transparency for capital projects and expenditures of sales tax proceeds. The City will publish a report of proposed and completed projects to be reviewed annually. The City will also maintain a public webpage detailing the allocation of funds and the progress of projects and related activities. SECTION 17. If any section, subsection, sentence, clause, phrase or provision of this Resolution or application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of any other provision or applications and to this end the provisions of the Resolution are declared to be severable. The City Council hereby declares that it would have passed the Resolution and each section, subsection, sentence, clause, phrase or provision thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or provisions thereof be declared invalid or unconstitutional. SECTION 18. Effective Date. This Resolution will be in full force and effect from its date of passage by the City Council of the City of Wichita, Kansas. ADOPTED AND APPROVED by the governing body of the City of WICHITA, Kansas this 10th day of February, 2026. Lily Wu, Mayor ATTEST:_____________________________ Shinita Rice, City Clerk Approved as to Form:_________________________ Jennifer Magaña City Attorney and Direction of Law IPL0313962 Feb 13 2026