RESOLUTION NO. 26-053 A resolution by the City Council of the City of wichita PERTAINING TO THE USE AND OVERSIGHT OF SALES TAX PROCEEDS TO REDUCE PROPERTY TAXES. 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 Property Tax Relief 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. Initiative C. Property Tax Relief 1. The sales tax ballot language provides that an amount not to exceed $150 million dollars of such tax shall be applied for Property Tax Relief. 2. On or before May 15th of each year beginning in 2027, the Finance Director shall provide the City Council with the balance in the Property Tax Reduction Account designed for Property Tax Relief for the next fiscal year. 3. Based on this amount, the City will pledge to utilize this amount of funding to relieve the tax levies upon taxable tangible property located within the City with continued compliance with the provisions of the state budget laws and revenue neutral tax rate as set forth in K.S.A. 79-2925 et. seq. 4. Each year, the City Budget will be proposed by the City Manager with the statutorily required Notice of Publication, setting the maximum amount of taxes to be levied. The proposal will include the revenue necessary to fund the Proposed Budget, with the amount of proposed taxes to be levied reduced by the certified amount available within the Property Tax Reduction Account. 5. The Finance Director shall annually provide to the City Council reports which indicate the amount of property tax revenues offset by sales tax revenues collected. After an initial $20 million or an amount sufficient to provide for a four (4) mill reduction is collected, this four (4) mill reduction will occur in fiscal year 2027. In subsequent years, if such tax revenues equal or exceed $20 million or are equal to an amount sufficient to provide for a four (4) mill reduction a mill levy reduction not less than 4 mills shall be provided to property taxpayers or included in the proposed budget for the subsequent year. If such tax revenues do not equal or exceed $20 million, the amount of revenue shall be used to proportionately offset the amount of proposed taxes to be levied. 6. Balances retained in the Property Tax Reduction Account will be invested based on the City's Pooled Funds Investment Policy. Any proceeds for the investment of said funds will be credited to the Property Tax Reduction Account. 7. 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. SECTION 2. 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 3. 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 Director of Law IPL0314005 Feb 13 2026