RESOLUTION NO. 26-049 A resolution by the City Council of the City of wichita PERTAINING TO THE USE AND OVERSIGHT OF SALES TAX PROCEEDS AND EXPENDITURES. 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 dollars 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 oversight provisions, guardrails and guidelines for the expenditures of sales tax proceeds 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. Sales Tax Prioritization. 1. The first $21 million in Sales Tax Proceeds or an amount sufficient to provide taxpayers a four (4) mill reduction starting in fiscal year 2027 shall be allocated to Property Tax Relief. The next $280 million shall be allocated to Property Tax Relief, Homeless and Housing and Public Safety until each receives $100 million. Thereafter all initiatives shall be funded on a pro-rata basis in accordance with the ballot language, up to each initiative's maximum revenue amount. 3. If State approval is granted, the Council will implement the grocery tax exemption. If the grocery tax exemption is not passed by the state legislature, the City Council will explore options for sales tax relief for low-income residents. SECTION 2. Sales Tax Oversight. 1. The City Manager together with the City Finance Director and City Auditor will develop policies and procedures related to: a. Revenue Collection and Allocation b. Fund Accounting and Financial Tracking c. Expenditure and Investment Compliance d. Contracted Services (Where Applicable) e. Property Tax Relief Administration f. Reporting and Transparency g. Such policies and procedures will be provided to the City Council for review within sixty days of approval of the sales tax. SECTION 3. Sales Tax Program Expenditure Guidelines "Guardrails." In addition, the City Council establishes the following "guardrails" for oversight for the use of sales tax proceeds as best business and financial practices: 1. Voter Authorization and Temporary Tax Limitations The sales tax is authorized solely through voter approval and is temporary in nature, expiring at the conclusion of the voter-approved term. · The tax rate and duration may not be extended, renewed, or repurposed without subsequent voter approval. · Revenues generated are restricted for the purposes and projects expressly approved by voters. 2. Dedicated Funding and Use Restrictions Sales tax revenues are legally and administratively dedicated to the approved sales tax program and its authorized initiatives. · Funds may only be expended on programs, projects and cost categories authorized by Ordinances or Resolution consistent with the intent of voters. · All sales tax proceeds will be invested according to the City's investment policies. · Any interest earned on sales tax proceeds will be redistributed back into funding for the specific initiative. 3. Pay-As-You-Go Financing Principles Projects are funded on a cash basis only, meaning projects will only be initiated when sufficient cash is available to fund all project or program expenditures. · Debt issuance, advance financing, or borrowing against sales tax revenue is prohibited unless explicitly authorized by voters. 4. Council-Adopted Implementation and Prioritization Plans Following voter approval, the City Council shall annually adopt a Capital Improvement Program (CIP) which includes specific prioritization and funding levels for projects or programs to be funded with sales tax revenue. · Annually, staff will develop recommendations for the CIP to be considered by the City Council for approval, based on revised cash flow projections, project sequencing and prioritization issues, and revised estimated costs of completing prioritized projects with expected timelines and milestones. · The City Council retains final authority over implementation decisions, subject to voter intent and Ordinance constraints. 5. Independent Citizens' Oversight Committee A Citizens' Oversight Committee is to be established by Ordinance to provide independent oversight of the sales tax program. · The committee is to be comprised of not more than 15 individuals. Six of which will be appointed from the respective council districts, and one appointed by the Mayor. · Three members will be appointed to represent the Continuum of Care, Affordable Housing Community and Public Safety Stakeholders. · The Committee will review project status, expenditures, and compliance with the intent of voters. · The Committee may make recommendations but does not direct operations or expenditures. · The Committee is to review the revenue received and the expenditures made in relation to the tax authorized by the Ordinance. The committee shall make quarterly reports to the community confirming that expenditures are all in keeping with approved priorities and that no revenues have been reallocated by the City for other uses not designated by the sales tax Ordinance. · In addition to advisory functions, the Committee shall have authority to: a. Review expenditures for compliance with adopted guardrails; b. Flag deviations for Council consideration and review; c. Recommend corrective actions, pauses, or audits when warranted; and d. In addition, the committee may have up to five subcommittees, one for each sales tax initiative. · The oversight committee shall review and make recommendations regarding the use of and plans for operation and maintenance of the New Downtown Public Performing Arts Center. 6. Transparency and Open Meetings Oversight committee meetings are subject to applicable open meeting laws. · Agendas, minutes, project updates, and financial summaries are made publicly available. · Program reporting emphasizes accessibility, clarity, and consistency. · An Ordinance regarding the size, structure and scope of responsibilities of the Citizens' Oversight Committee shall be presented to the City Council no later than sixty days following the approval of the sales tax. · The City will maintain a digital dashboard of sales taxes collected and expended. 7. Allocation Flexibility and Change Limits · As set forth below, project funding allocations, as approved annually by the City Council in the adoption of the CIP, may not be materially altered without City Council approval. · Material reallocations or changes in approved project budgets will require formal council approval by the appropriate Resolution, Ordinance or budget amendment/adjustment. 8. Revenue Shortfall Protocols If sales tax revenues fall short of projections, on an annual basis or in total: · Staff will recommend adjustments, including project scopes, timelines, or sequencing and present those recommended adjustments to the City Council. · Any required adjustments will be made proportionally to each priority area. · Allocation decisions require Council approval, by Ordinance, Resolution, or budget adjustment following community input and recommendations from the Citizens' Oversight Committee. 9. Internal Audit and Compliance Assurance (Clarified Role) Internal Audit provides independent assurance that: 1. Expenditures comply with Ordinance, policy guardrails, and internal controls; 2. Financial reporting is accurate and transparent; 3. Internal Audit does not approve projects, manage funds, or substitute management or Citizens' Oversight Committee's responsibilities. 10. Sales tax revenue collected by the City will be invested according to the City's Pooled Fund Investment Policy. 11. 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 will be given to any business, entity, or organization in the awarding of any contract. 12. All construction contracts, change orders or amendments to construction contracts will be presented to the City Council for approval. 13. Periodic construction and project updates will be provided to the City Council and the Citizens' Oversight Committee. SECTION 4. 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 5. 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 6. 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 IPL0314028 Feb 13 2026