Sagging sales tax collections threaten to curtail construction of KC police projects

Kansas City Star

March 25, 2008

The slowing economy has put a $1.2 million dent in Kansas City's public safety sales tax revenue, a development that could force cuts to police construction projects.

Police officials disclosed the shortfall Tuesday at a meeting of the Board of Police Commissioners.

Members had asked police commanders for a detailed report after learning two weeks ago that the city had borrowed more than $3 million of the sales tax money for other projects.

The documents also showed that the city used $650,000 of the sales tax money for two projects that were not part of the original plan -- a flood-warning system and security cameras. Those projects will further dig into the money available for police projects, police said.

When police officials pitched the quarter-cent sales tax increase to voters in 2002, they said money generated would finance 10 construction projects. Of those, police have completed two: a police training academy and a Northland patrol station. Police are working on a third project, a new Metro patrol station.

Police anticipated collecting about $138 million from the sales tax over its nearly nine-year run. But police spent twice as much as they expected on the academy and now are facing lower tax collections, in addition to unanticipated projects being financed from the tax.

Police said they learned last week that they also might have to pay about $700,000 more than they planned for construction liability insurance for the academy.

The report Tuesday said police could have paid $426,305 for the insurance through a contractor in 2006, but city officials 'apparently without board approval chose to self-insure this project,' and plan to set aside an estimated $1.1 million, police said.

That money would be used to settle any claims involving the project.

Police officials said they were concerned that the city could end up using the $1.1 million, or whatever remained after settling lawsuits, for other purposes.

City officials could not be reached for comment.

Besides the issues with city officials, commissioners also have had dustups recently with the city's Capital Improvements Management Office, or CIMO, over its billing.

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