The Kansas City Council met in Business Session on September 22, 2022, to approve prior meeting minutes, review the audit scope statement for the Central City Economic Development (CCED) Sales Tax program, and receive the Houseless Task Force's "Zero KC" strategic plan. A floor introduction for a citywide community land trust model was also announced.
City Auditor Doug Jones presented the scope statement for an audit of the Central City Economic Development Sales Tax Program. He reported that the sales tax is expected to generate about $10 million annually, with total revenue between fiscal years 2018 and 2022 of about $46 million and fiscal year 2023 revenue expected to exceed $11 million. The City Council has approved $40 million for 28 projects, the program has distributed over $20 million, and four projects have been completed. The program is nearing the midpoint of its 10-year lifespan. The audit objectives are to evaluate whether CCED projects are making progress toward completion and whether funds were spent according to funding agreements. The work will include reviewing statutes and city code, interviewing staff, board members, and developers, and reviewing a sample of projects. The report is planned for January 2023.
Councilwoman Parkshaw introduced the presentation on behalf of the Houseless Task Force, joined by Dr. Ann Williamson, Markea Watson, Executive Director of the Greater Kansas City Coalition to End Homelessness, and Josh Hinge, Houseless Prevention Coordinator. Dr. Williamson presented findings from the community needs assessment:
The assessment identified needs for greater collaboration, hygiene facilities, additional shelter space, wraparound services, nonprofit staffing, more affordable rental units, prevention services, and more flexible funding sources to leverage federal dollars.
Markea Watson and Josh Hinge presented housing inventory data showing a projected need for more housing, including a zero gap identified for transitional housing and shared housing. They noted that unsheltered homelessness is rising while emergency shelter homelessness is declining. Emergency Rental Assistance Program (ERAP) data showed that 72% of assistance went to Black or African American applicants, who represent about 28% of the population, and that assistance averaged almost nine months. Focus group results emphasized the need for wraparound services, shelter and housing options that do not require sobriety, more housing units, increased inclusivity for LGBTQIA community members, and person-centered approaches.
The strategic plan is built on five agreed principles: living outside is dangerous; more housing is needed; wraparound services are essential; one size does not fit all; and solving homelessness requires ongoing investment. Priority projects include a low-barrier emergency shelter, humane encampment response, more street outreach, aligning CoC and ESG programs, and engaging neighborhoods and the business community.
Councilmember Robinson asked where the detailed needs assessment and strategic plan could be found; Parkshaw stated they are online at kcmo.gov/housing and will be emailed and provided in hard copy. Robinson also asked about costs and the plan for the approaching winter. Parkshaw said cost estimates are not yet determined, and that an extreme weather ordinance would be introduced in about two to three weeks, developed with a regional approach and partners across the state line. Robinson raised concerns about the absence of visible Latino representation in ERAP data and about language barriers; Watson explained that federal race/ethnicity categories may create a paradox where Hispanic individuals identify as white or Black racially, and said the housing department could provide more detail. Robinson also asked whether the five-year housing plan informed the strategic plan; Watson confirmed it did.
We'll start business session today. Our first item on the agenda is approval of minutes for business session of September 15th. Is there a motion? Second move. Yes. Some move. So be so moved. All right. Uh all in favor indicate by so hall is the motion, second from Robinson. All in favor, indicate by saying aye. Aye. Aye. All opposed. Motion passes. Our first item is the CCED audit scope statement from the city auditor. Good afternoon, Mayor Lucas, members of City Council, Doug Jones, City Auditor. I'm here to present the scope statement for our audit of the Central City Economic Development Sales Tax Program. My presentation will outline why we are doing the audit, the audit objective, the work we will perform, and the anticipated release date. The area defined as the central city is bounded by 9th Street on the north, Gregory Boulevard on the south, the Paseo on the west, and Indiana Avenue on the east. The sales tax is expected to generate about 10 million dollars annually. The total revenue between fiscal years 2018 through 2022 is about 46 million dollars. Revenues for fiscal year 2023 are expected to be over 11 million dollars. A five member board reviews and recommends projects to the city council for approval. City staff provide administrative support to the program, including monitoring and fund disbursement. The city council has approved 40 million dollars for 28 projects. The program has distributed over 20 million dollars to those projects. To date, four projects have been completed. Sales tax is nearing the midpoint of its 10 year lifespan. The public is interested in learning how the C C ED sales tax is being used. Some external and internal stakeholders have expressed concerns about the slow progress of projects with approved funding. Also, the city has a fiduciary duty to safeguard public tax monies by following rules, regulations, and the city's policies and procedures. Analyzing the progress of C C ED projects could identify barriers affecting project completion. Our audit objectives are to evaluate whether Central City Economic Development Sales Tax are making progress towards completion and whether funds were spent according to funding agreements. We will review state statutes, city code, and other relevant procedures. Interview city staff, C C E D board members, and project developers. Select a number of projects to review relevant documents, including funding agreements and amendments, analyze the progress these projects have made towards meeting their goals, and for a sample of projects, compare expenses to funding agreements. We plan to issue the report in January 2023. This concludes my brief presentation. What questions do you have about the scope statement? Any questions for the city auditor? Councilwoman Robinson. Um thank you, Mr. Mayor. Um thank you so much for um how do how do we come about this audit? I know you have different ways that you arrive at deciding which audits to do. This uh sales tax has been on my uh radar since it was passed. Uh I've heard things from some of you. Okay, I've heard things from management, I've seen things in the press. So a lot of things have come together and now seem to be the right time to conduct this audit. Okay, yeah, I think I would certainly agree and concur.