HUTCHINSON, Kan. — As Hutchinson officials prepare to consider a proposed STAR bond district and look ahead to a March sales tax vote, city leaders say both measures are designed to fund long-delayed infrastructure and facility improvements while shifting more of the financial burden to visitors and future growth rather than homeowners alone.
City Manager Enrico Villegas, Mayor Scott Meggers and Vice Mayor Greg Fast outlined the plans during an appearance on the BW Morning Show ahead of Tuesday night’s Hutchinson City Council meeting, where the STAR bond item is on the agenda.
Villegas said a STAR bond district allows future sales tax growth within a defined area to help pay for eligible projects. Under the program, a baseline level of sales tax revenue is established. Any increase generated after development occurs can be used to retire bonds issued by the state, typically covering up to 50 percent of project costs.
“If the district produces higher sales after the project is built, that increase in sales tax is what pays off the STAR bond,” Villegas said. “The remainder must come from private investment.”
Villegas said the proposed Hutchinson STAR bond district would support improvements tied to the Cosmosphere, the Landmark Hotel in downtown Hutchinson and Memorial Hall. Planned Memorial Hall work includes installing an HVAC system, making Americans with Disabilities Act improvements and addressing other building needs.
The district would extend through downtown and south along 17th Avenue near the hotel and Cosmosphere area.
City officials also addressed a proposed citywide sales tax vote scheduled for March 3. Villegas said revenue from the tax would be directed toward streets, stormwater infrastructure, parks and city facilities.
“Historically, streets have been the area that gets cut when budgets are tight,” Villegas said. “We know we underfund them, and this would help address that along with stormwater and facilities.”
Fast said the sales tax would broaden the base of who helps pay for city services, including visitors who attend events, attractions and the Kansas State Fair.
“Our town is full of tourists who use our roads and services,” Fast said. “This allows more people to contribute to the services the city provides.”
Fast said if the sales tax is approved, the city plans to eliminate the stormwater utility fee, which currently costs residents about $80 per year. He also said the city hopes to reduce property taxes, though he cautioned that cannot be guaranteed.
Meggers said the city has already taken steps to give back to residents and encourage growth, including reducing some building permit fees and eliminating residential water tap fees.
Villegas added that the city recently launched a utility billing assistance program for residents in need and a facade improvement program for commercial properties south of 17th Avenue. The city has also introduced a more comprehensive pre-planning process that allows developers to meet with multiple departments before starting projects.
The STAR bond effort dates back about two years, according to city officials, and gained momentum with the development of the Hilton Garden Inn, which helped make the financing feasible.
City leaders encouraged residents to attend Tuesday night’s council meeting or watch online via the city’s YouTube and Facebook pages to learn more and provide input on the proposals. The meeting will be held at 5:30 p.m. in the Council Chambers at the Hutchinson City Hall.