Voice For Liberty

Tag: Wichita city government

  • Wichita perpetuates wasteful system of grants; feels good about it

    Wichita perpetuates wasteful system of grants; feels good about it

    While praising the U.S. Economic Development Administration for a grant to Wichita State university, Wichita city planners boost the growth of wasteful government spending.

    Tweet from Wichita city officials
    Tweet from Wichita city officials
    News that Wichita State University received a grant from the U.S. Economic Development Administration was praised by City of Wichita bureaucrats. Such praise only serves to perpetuate a federal agency that does more harm than good, entrenching the “You take yours, I’ll take mine” logic that leads to ever-rising spending.

    The tweet from Wichita city planners is designed to make us feel happy for Wichita State University. Having accepted these funds, now we have to tolerate grants like these made by the EDA:

      Harry Reid Research Park

    • In 2008, the EDA provided $2,000,000 to begin construction of the UNLV Harry Reid Research & Technology Park in Las Vegas, NV. For many years the UNLV Harry Reid Research & Technology Park featured a paved road and a website claiming the first anticipated tenant would move in in 2010. But there are signs of life now in 2015, according to the article Signs of life emerge at UNLV’s long-dormant technology park.)
    • In 2010, $25,000,000 was spent by the EDA for a Global Climate Mitigation Incentive Fund and $2,000,000 for a “culinary amphitheater,” wine tasting room and gift shop in Washington State.
    • In 2011, the EDA gave a New Mexico town $1,500,000 to renovate a theater.
    • In 2013, the EDA also gave Massachusetts $1.4 million to promote new video games.
    • Back in the 1980s, the EDA used taxpayer dollars to build replicas of the Great Wall of China and the Egyptian Pyramids in the middle of Indiana. They were never completed — it is now a dumping ground for tires.

    So in exchange for WSU receiving a few million dollars, we have to put up with the above. We have to wonder if Harry Reid being the number one Senate Democrat had anything to do with a grant for a facility named in his honor. We have yet another government agency staffed with a fleet of bureaucrats, including a chief who will travel to Wichita to promote and defend his agency. We have another government agency that believes it can better decide how to invest capital than the owners of the capital. We have another example of shipping tax dollars to Washington, seeing a large fraction skimmed off the top, then cities and states begging for scraps from the leftovers.

    Rep. Pompeo on the EDA

    U.S. Representative Mike Pompeo has sponsored legislation and offered amendments to end the EDA. In January 2012 he wrote an op-ed which explains the harm of the EDA. Here is an excerpt:

    Last week, Secretary Fernandez invited himself to Wichita at taxpayer expense and met with the Wichita Eagle’s editorial board. Afterwards, the paper accurately noted I am advocating eliminating the EDA even though that agency occasionally awards grant money to projects in South Central Kansas. They just don’t get it. Thanks to decades of this flawed “You take yours, I’ll take mine” Washington logic, our nation now faces a crippling $16 trillion national debt.

    I first learned about the EDA when Secretary Fernandez testified in front of my subcommittee that the benefits of EDA projects exceed the costs and cited the absurd example of a $1.4 million award for “infrastructure” that allegedly helped a Minnesota town secure a new $1.6 billion steel mill. As a former CEO, I knew there is no way that a taxpayer subsidy equal to less than one-tenth of one percent (0.1%) of the total capital needed made a difference in launching the project. That mill was getting built whether EDA’s grant came through or not. So, I decided to dig further.

    I discovered that the EDA is a federal agency we can do without. Similar to earmarks that gave us the infamous “Bridge to Nowhere” or the Department of Energy loan guarantee scandal that produced Solyndra, the EDA advances local projects that narrowly benefit a particular company or community. To be sure, the EDA occasionally supports a local project here in Kansas. But it takes our tax money every year for projects in 400-plus other congressional districts, many if not most of which are boondoggles. For example: EDA gave $2 million to help construct UNLV’s Harry Reid Research and Technology Park; $2 million for a “culinary amphitheater,” tasting room, and gift shop at a Washington state winery; and $500,000 to construct (never-completed) replicas of the Great Pyramids in rural Indiana.

    Several times in recent decades, the Government Accountability Office has questioned the value and efficacy of the EDA. Good-government groups like Citizens Against Government Waste have called for dismantling the agency. In addition, eliminating the EDA was listed among the recommendations of President Obama’s own bipartisan Simpson-Bowles Deficit Reduction Commission.

    So why hasn’t it been shut down already? Politics. The EDA spreads taxpayer-funded project money far and wide and attacks congressmen who fail to support EDA grants. Soon after that initial hearing, Secretary Fernandez flew in his regional director — again at taxpayer expense — to show me “all the great things we are doing in your home district” and handed me a list of recent and pending local grants. Hint, hint. You can’t say I wasn’t warned to back off. Indeed, Eagle editors missed the real story here: Secretary Fernandez flew to Wichita because he is a bureaucrat trying to save his high-paying gig. The bureaucracy strikes back when conservatives take on bloated, out-of-control, public spending, so I guess I’m making progress.

    Please don’t misunderstand. I am not faulting cities, universities, or companies for having sought “free” federal money from the EDA. The fault lies squarely with a Washington culture that insists every program is sacred and there is no spending left to cut.

    A federal agency run at the Assistant Secretary level has not been eliminated in decades. Now is the time. My bill to eliminate the EDA (HR 3090) would take one small step toward restoring fiscal sanity and constitutional government.

    Last year Pompeo offered an amendment to H.R. 4660, the Commerce, Justice, Science, and Related Agencies Appropriations Act for Fiscal Year 2015, to eliminate the Economic Development Administration (or the “Earmark Distribution Agency”). The amendment would send EDA’s total funding — $247 million in FY 2015 — to the Deficit Reduction Account, saving up to $2.5 billion over 10 years based on current levels.

    “We need to solve America’s debt crisis before it is too late, and that means reducing wasteful spending, no matter the agency or branch of government,” said Rep. Pompeo. “The EDA should be called the ‘Earmark Distribution Agency,’ as it continues to spend taxpayer dollars on local pet projects in a way similar to congressional earmarks — which have already been banned by the House.”

    Following, Pompeo’s remarks on the floor of the United States House of Representatives.

  • Wichita ASR water project work accomplished

    Wichita ASR water project work accomplished

    The $247 million Wichita ASR water project operates at just a fraction of its design capacity.

    An important part of Wichita’s water supply infrastructure is the Aquifer Storage and Recovery program, or ASR. This is a program whereby water is taken from the Little Arkansas River, treated, and injected in the Equus Beds aquifer. That water is then available in the future as is other Equus Beds water.

    With a cost so far of $247 million, the city believes that ASR is a proven technology that will provide water and drought protection for many years. Last year the city recommended that voters approve $250 million for its expansion, to be paid for by a sales tax. Voters rejected the tax.

    According to city documents, the original capacity of the ASR phase II project to process water and pump it into the ground (the “recharge” process) was given as “Expected volume: 30 MGD for 120 days.” That translates to 3,600,000,000 (3.6 billion or 3,600 million) gallons per year. ASR phase II was completed in 2011.

    ASR days of flow and work through 2015-08The ASR project is able to draw from the Little Arkansas River when the flow is above 30 cubic feet per second. It doesn’t flow at that rate every day of the year. That’s why the expected production volume is calculated based on 120 days of operation per year.

    What has been the experience of the ASR project? I’ve gathered data from the U.S. Geological Survey on the flow of the Little Arkansas River at the relevant measuring station. USGS also has production figures. I’ve presented these previously in articles like Wichita water statistics update.

    ASR operating efficiency through 2015-08The nearby charts give an idea of the efficiency of operation of the ASR project. (Click charts for larger versions.) For each month, I counted how many days had a river flow above 30 cfs at every measurement for the day. (The flow is measured several dozen times a day.) If a day had all measurements above 30 cfs, I counted that as a day of adequate river flow. I then calculated the number of days of work actually accomplished using the water produced each month, the number of days of adequate river flow for the month, and the ASR design capacity.

    As can be seen in the charts, the ASR project is operating far below its design goal. So far the city has not been able to provide an explanation as to why this project is not meeting its goals.

  • James Chung in Wichita, September 23, 2015

    James Chung in Wichita, September 23, 2015.

  • Where are our documents?

    Where are our documents?

    Government promotes and promises transparency, but finds it difficult to actually provide.

    In this excerpt from WichitaLiberty.TV, I give some examples of how little information government actually shares with us, despite its proclamations. Click here to view in high definition at YouTube. Following, the script for this video excerpt.

    During the campaign for the one cent per dollar Wichita city sales tax last year, a city document promised this if the tax passed: “The process will be transparent, with reports posted online outlining expenditures and expected outcomes.” The “Yes Wichita” campaign promised “Reports will be measured and reported publicly.”

    These are good ideas. The city should implement them even though the sales tax did not pass. We were promised a website if the tax passed. If it’s good for citizens to have this type of information if the sales tax had passed, it’s good for them to know in any circumstance.

    Why is this information not available? Is the city’s communications staff overwhelmed and have no time to provide this type of information? During the sales tax campaign Wichita city staff had time to prepare news releases with titles like “City to Compete in Chili Cook-off” and “Jerry Seinfeld Returns to Century II.”

    Wichita Facebook page example 2015-09-14 aSince then the city has hired additional communications staff, adding a Strategic Communications Director in March. Now, while the city’s Facebook page has some useful information, there is also time to promote Barry the Bison playing golf.

    Now Wichitans have to wonder: Was transparency promised only to get people to vote for the sales tax? Or is it a governing principle of our city? I think I know the answer.

    Here’s another example. The Wichita transit system is a matter of interest right now. Funding for the system has been a problem for some years, and money for the bus system was part of the sales tax last year that Wichita voters rejected. So what is the city and the transit system doing to make information available? The answer is: not much. Wichita Transit Advisory BoardSome of the fundamental documents of government agencies are agendas, agenda reports, and minutes of meetings. And there is such a thing as the Wichita transit advisory board. But good luck finding agendas and minutes for this board. They do not exist. Well, I’m sure they exist somewhere. But they’re not available on the city’s website, or on the transit system’s’ own website. I’m sure that if you call or write someone will send these documents to you. But that takes time, both for citizens and government workers.

    It is not difficult to do this, making documents available. There are many city agencies that make documents available, like the city council and airport advisory board. Earlier this year a local activist mentioned the lack of agendas and minutes for the transit board, bemoaning that there was no part-time web person to post the documents. Well, you don’t need a web person to do it. It is so simple that anyone can do it for free.

    Here’s an example. This summer as Sedgwick County was preparing and debating its budget, I wanted to do some research on past budgets. But on the county’s website, the only budgets available were for this year and last year. There was nothing else.

    11-Sedgwick County FinancialsSo I asked for budgets and other financial documents. I received them on CD. Then I created a shared folder using Google Drive and uploaded the documents. Now, these documents are available to the world. They can be found using a Google search. Oh, and here’s something a little ironic. These old budgets had been on the Sedgwick County website at one time. Someone made the decision to remove them.

    Creating this depository of budget documents cost nothing except a little bit of time. Well, if you have a lot of data to share, you might have to pay Google a little, like ten dollars per month for each agency or person. But it is so simple that there is no excuse for the failure of agencies like Wichita Transit to make documents like agendas and minutes available. You don’t need specialized personnel to do this work. All you need is the will and desire to make the documents available.

    Here’s another example of how simple it can be to achieve transparency. These days live and archived video of governmental meetings is commonplace. Commonplace, that is, except for the Wichita public schools. If you want to see a meeting of the Wichita school board, you must either attend the meetings, or view delayed broadcasts on cable TV. There’s a simple and low-cost way to fix this. It’s called YouTube.

    When the Sedgwick County Commission was faced with an aging web infrastructure for its archived broadcasts, it did the sensible thing. It created a YouTube channel and uploaded video of its meetings. Now citizens can view commission meetings at any time on desktop PCs, tablets, and smartphones. This was an improvement over the old system, which was difficult to use and required special browser plug-ins. I could never get the video to play on my Iphone.

    Wichita public schools YouTubeThe Wichita school district could do the same. In fact, the district already has a YouTube channel. Yes, it takes a long time to upload two or three hours of video to YouTube, but once started the process runs in the background without intervention. No one has to sit and watch the process.

    Earlier this year I asked why the district does not make video of its meetings available archived online. The district responded that it “has a long-standing commitment to the USD 259 community of showing unabridged recordings of regular Board of Education meetings on Cox Cable Channel 20 and more recently AT&T U-verse Channel 99.” The meetings are broadcast seven times starting the day after each meeting. Two of the broadcasts start at 1:00 am.

    Showing meetings delayed on cable TV is okay. It was innovative at one time. But why aren’t meetings shown live? What if you can’t watch the meeting before it disappears from the broadcast schedule after a week? What if you don’t want to pay cable television bills? What if you want to watch meetings on your computer, tablet, or smartphone? I don’t think the fact that meetings are on cable TV means they can’t also be on YouTube.

    There are two elements of irony here, if that is the correct term. One is that earlier this year the Wichita school district considered hiring a marketing firm to “gauge its reputation and suggest new branding strategies.” Here’s an idea: Act as though you care about people being able to view the district’s board meetings.

    Second: In August the Wichita school district raised property taxes. The mill levy will rise by 2.86, an increase of about five percent from its present level. The projected cost is an additional $33 per year for a home worth $100.000. That is quite a large increase. That’s bad. What’s also bad is the district’s lack of respect for taxpayers. As I’ve just told you, it’s difficult to view a meeting of the school board, which is a sign that the district prefers to operate in the shadows as much as possible. The board will raise your taxes, and at the same time keep it difficult for you to see them do it.

    Just for the sake of completeness, let’s not let the state of Kansas off the hook. Currently, the proceedings of the Kansas Senate and House of Representatives are not available on video. The audio is broadcast on the internet, but it’s live only. No archiving. You must listen live, or figure out some way to record it on your own.

    But for eight dollars per month the legislature could make its audio proceedings available to listen to at any time. For eight dollars per month at least one podcast hosting company offers an unlimited plan. Unlimited storage, and unlimited bandwidth. That is just what is needed. And since the audio of the proceedings of the House and Senate is broadcast on the internet, it must pass through a computer somewhere. That computer could also be recording the audio. Once recorded, the process of uploading the audio to the podcast host is a trivial procedure.

    But neither Kansas legislative chamber records their proceedings, according to the Secretary of the Senate and the Chief Clerk of the House. I asked. Recordings of sessions are not available because they are not made. It would be simple to record audio of the Kansas House and Senate and make it available for anyone to listen to at any time. It is almost without cost. It would have great benefit.

    Oh, and I can’t forget the federal government. In January I requested a document from the United States Department of Energy. I had several conversations and emails with a records clerk. We came to agreement as to what I would receive, or at least what I am requesting to receive. But I’ve received nothing so far. I don’t know if the document will be made available to me at no charge, or will I have to pay thousands of dollars. The Department of Energy is working on my request, they say. Our congressman Mike Pompeo and his office have intervened on my half. But after nine months: nothing.

    All these levels of government — city, county, school district, state, and federal — say they value open records and transparency. But let me ask you: Do you think they really mean it?

  • WichitaLiberty.TV: Lack of information sharing by government, community improvement districts, and the last episode of “Love Gov”

    WichitaLiberty.TV: Lack of information sharing by government, community improvement districts, and the last episode of “Love Gov”

    In this episode of WichitaLiberty.TV: Do our governmental agencies really want to share data and documents with us? Community Improvement Districts and homeowners compared. And, the last episode of “Love Gov” from the Independent Institute. View below, or click here to view in high definition at YouTube. Episode 95, broadcast September 20, 2015.

  • Wichita’s demolition policy

    Wichita’s demolition policy

    Wichita homeowners must pay for demolition of their deteriorating homes, but the owners of a long-festering and highly visible commercial property get to use tax funds for their demolition expense.

    Tomorrow the Wichita City Council will consider condemnation of two houses in Wichita. In both cases the Board of Building Code Standards and Appeals recommends demolition of the buildings, at the owner’s expense.

    Location of one of the houses recommended for demolition. The city's primary wastewater treatment plant is in the background.
    Location of one of the houses recommended for demolition. The city’s primary wastewater treatment plant is in the background.
    Action like this is common for residential property in Wichita. But we don’t often see commercial property demolished by city council action. Tomorrow’s proposed — and likely — action is in contrast with action taken a few weeks ago by the council. Then, the council allowed the owner of blighted commercial property located near the airport to collect additional sales tax from future customers in order to pay for demolition of a hotel and restaurant.

    From Google Earth, a view of the restaurant and hotel on the subject property. If a house this blighted had been owned by a poor inner-city resident, the city would have long ago condemned and demolished the buildings, at the homeowner's expense.
    From Google Earth, a view of the blighted restaurant and hotel on the property near the airport. If a house this blighted had been owned by a poor inner-city resident, the city would have long ago condemned and demolished the buildings, at the homeowner’s expense.
    As reported in the Wichita Eagle, the restaurant had been vacant for about a decade. Supporters, say the newspaper, refer to the property as “blighted.” The council member that represents the area says it is “dilapidated” and “vacant for a long time.” It was described as contributing to an unsightly first impression of the city.

    So why is the city likely to demolish two obscure houses while it let a long-time blighted commercial property languish in a highly visible location?

    And why does the city charge homeowners for demolition, but allows a commercial property owner to pay for its demolition with tax money?

  • Wichita can implement transparency, even though tax did not pass

    Wichita can implement transparency, even though tax did not pass

    Wichitans have to wonder: Was transparency promised only as an inducement to vote for the sales tax? Or is it a governing principle of our city?

    During the campaign for the one cent per dollar Wichita city sales tax last year, a city document promised this if the tax passed: “The process will be transparent, with reports posted online outlining expenditures and expected outcomes.”

    The “Yes Wichita” campaign promised “Reports will be measured and reported publicly.”

    Useful information from the city on Facebook.
    Useful information from the city on Facebook.
    These are good ideas. The city should implement them even though the sales tax did not pass.

    We were promised a website if the tax passed. If it’s good for citizens to have this type of information if the sales tax had passed, it’s good for them to know in any circumstance.

    Why is this information not available? Is the communications staff overwhelmed and have no time to provide this type of information? During the sales tax campaign Wichita city staff had time to prepare news releases with titles like “City to Compete in Chili Cook-off” and “Jerry Seinfeld Returns to Century II.”

    Then, there are posts like this. Is this preventing staff from providing useful information like the city promised if the sales tax passed?
    Then, there are posts like this. Is this preventing staff from providing useful information like the city promised if the sales tax passed?
    Since then the city has hired additional communications staff, adding a Strategic Communications Director in March. Now, while the city’s Facebook page has some useful information, there is also time to promote Barry the Bison playing golf.

    Now Wichitans have to wonder: Was transparency promised only to get people to vote for the sales tax? Or is it a governing principle of our city?

  • Wichita water statistics update

    Wichita water statistics update

    The Wichita ASR water project produced more water in August than in July, but continues to fail to produce water at the projected rate or design capacity.

    An important part of Wichita’s water supply infrastructure is the Aquifer Storage and Recovery program, or ASR. This is a program whereby water is taken from the Little Arkansas River, treated, and injected in the Equus Beds aquifer. That water is then available in the future as is other Equus Beds water.

    With a cost so far of $247 million, the city believes that ASR is a proven technology that will provide water and drought protection for many years. Last year the city recommended that voters approve $250 million for its expansion, to be paid for by a sales tax. Voters rejected the tax.

    According to city documents, the original capacity of the ASR phase II project to process water and pump it into the ground (the “recharge” process) was given as “Expected volume: 30 MGD for 120 days.” That translates to 3,600,000,000 (3.6 billion or 3,600 million) gallons per year. ASR phase II was completed in 2011.

    At a city council workshop in April 2014, Director of Public Works and Utilities Alan King briefed the council on the history of ASR, mentioning the original belief that ASR would recharge 11,000 acre feet of water per year. But he gave a new estimate for production, telling the council that “What we’re finding is, we’re thinking we’re going to actually get 5,800 acre feet. Somewhere close to half of the original estimates.” The new estimate translates to 1,889,935,800 (1.9 billion) gallons per year.

    Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR Phase II, cumulative.
    Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR Phase II, cumulative.
    Based on experience, the city has produced a revised estimate of ASR production capability. What has been the actual experience of ASR? The U.S. Geological Survey has ASR figures available here. I’ve gathered the data and performed an analysis. (Click charts for larger versions.)

    Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR Phase II, cumulative since July 2013.
    Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR Phase II, cumulative since July 2013.
    I’ve produced a chart of the cumulative production of the Wichita ASR project compared with the original projections and the lower revised projections. The lines for projections rise smoothly, although it is expected that actual production is not smooth. The second phase of ASR was completed sometime in 2011, but no water was produced and recharged that year. So I started this chart with January 2012.

    2013 was a drought year, so to present ASR in the best possible light, I’ve prepared a chart starting in July 2013. That was when it started raining heavily, and data from USGS shows that the flow in the Little Arkansas River was much greater. Still, the ASR project is not keeping up with projections, even after goals were lowered.

    Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR phase II.
    Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR phase II.
    On the chart of monthly production, the horizontal line represents the revised annual production projection expressed as a constant amount each month. This even rate of production is not likely, as river flow varies. In the three years that ASR phase II has been in production, that monthly target been exceeded in three months.

    August 2015 production

    In August 2015, the ASR project recharged 158 million gallons of water. Its design capacity is 30 million gallons per day, so the work done in August represents less than six days of design capacity. The ASR project is able to draw from the Little Arkansas River when the flow is above 30 cfs. As can be seen in the chart of the flow of the river, the flow was above this level for the entire month.

    Flow of the Little Arkansas River at Valley Center. The ASR project is able to draw from the river when the flow is above 30 cfs at this measurement station.
    Flow of the Little Arkansas River at Valley Center. The ASR project is able to draw from the river when the flow is above 30 cfs at this measurement station.
    At one time the city was proud enough of the ASR project that it maintained an informative website at wichitawaterproject.org. That site no longer exists.
    At one time the city was proud enough of the ASR project that it maintained an informative website at wichitawaterproject.org. That site no longer exists.
  • Another week in Wichita, more CID sprawl

    Another week in Wichita, more CID sprawl

    Shoppers in west Wichita should prepare to pay higher taxes, if the city approves a Community Improvement District at Kellogg and West Streets.

    Next week the Wichita City Council will consider the formation of a Community Improvement District (CID) surrounding the intersection of Kellogg and West Streets.

    CIDs are a relatively recent creation of the Kansas Legislature. In a CID, merchants may charge additional sales tax, up to an extra two cents per dollar. For more about their mechanism, see Community improvement districts in Kansas. In the present case, the developer proposes to charge an extra one cent per dollar in tax. This extra sales tax, minus a handling fee, will be periodically remitted to the developer. It’s important to note that CID proceeds do not flow to the merchants who collect them.

    This CID is “pay-as-you-go,” meaning the city is not issuing bonds or loaning money.

    This CID, should the council approve, will contribute to CID sprawl. This is a condition in which more and more of the city is overtaken by CIDs and their higher taxes. In effect, a sales tax increase is taking effect. Because of the city’s weak protection of shoppers from these CID taxes, many Wichitans and visitors will pay higher taxes than they expected. This harms the reputation of Wichita.

    (Of note, Kansas raised the statewide sales tax this year. Because Kansas is one of the few states that tax groceries at the full rate, low-income families are harmed most by the higher sales and CID taxes. See Kansas sales tax has disproportionate harmful effects for analysis.)

    This CID is likely to be sold to citizens as contributing to public infrastructure. It’s true that a traffic signal on West Street and widening of that street are listed as uses of CID funds. But the amount budgeted is $350,000, which means that the improvements will not be substantial. This inclusion of public infrastructure is likely part of a strategy of sweetening the deal. It’s not all about greedy developers, the city will say. Some of the funds are going to public infrastructure. This strategy was used to justify the Cabela’s CID, in which part of the CID funds are paying for improvements to the intersection of K-96 and Greenwich Road.

    This CID proposal contains two new provisions that may help blunt some of the criticism of CIDs as harmful to other business firms in the city. First is this condition: “Allow the City to review and approve or deny the relocation of any business within three miles of the district, for the first three years, on any property in which the developer requests reimbursement for the land acquisition.” This seems designed to restrict “poaching” of merchants from other nearby landlords who are not being subsidized by a CID. Whether this condition has any real meaning is unknown. In practice, the city has been reluctant to enforce restrictions similar to this.

    Some of the first buildings to be demolished on West Street, according to a city schedule of milestones. Click for larger.
    Some of the first buildings to be demolished on West Street, according to a city schedule of milestones. Click for larger.
    Also there is this condition: “Demolition or rehabilitation of three identified structures and additional investment within the district within the timeframe below.” Following this is a schedule of milestones. This may be in response to instances where the city has authorized a subsidy program, but nothing happened, or happened slowly. The Exchange Place project at Douglas and Market is one example. Another is the CID at Central and Oliver. Principals of the Kellogg and West CID are also involved in the Central and Oliver CID, and little has happened there since its formation.

    Another important public policy issue regarding CIDs is this: If merchants feel they need to collect additional revenue from their customers, why don’t they simply raise their prices? We can easily see their rationalization: It’s better for us that unwitting customers pay higher sales taxes rather than higher prices. We can blame government for the taxes, but we get the money. 1

    Customers of merchants in CIDS ought to know in advance that an extra tax is charged. Some have recommended warning signage that protects customers from unknowingly shopping in stores, restaurants, and hotels that will be adding extra sales tax to purchases. Developers who want to benefit from CID money say that merchants object to signage, fearing it will drive away customers.

    State law is silent on this. The City of Wichita requires a sign indicating that CID financing made the project possible, with no hint that customers will pay additional tax. The city also maintains a website showing CIDs. This form of notification is so weak as to be meaningless, but this was the decision the city council made. 2

    CIDs allow property owners to establish their own private taxing district for their exclusive benefit. This goes against the grain of the way taxes are usually thought of. Generally, we use taxation as a way to pay for services that everyone benefits from, and from which we can’t exclude people. An example would be police protection. Everyone benefits from being safe, and we can’t exclude people from participating in — benefiting from — police protection.

    But CIDs allow taxes to be collected for the benefit of one specific entity. This goes against the principle of broad-based taxation to pay for an array of services for everyone. But in this case, the people who benefit from the CID are quite easy to identify: the property owners in the district. We shouldn’t let private parties use a government function for their exclusive benefit.

    1. The premise of this question is not accurate, as it is not the merchants who receive CID funds. Landlords do. The more accurate question is why don’t landlords raise their rents? ↩
    2. Weeks, B. (2014). Wichita City Council fails to support informing the taxed. Online. Voice For Liberty in Wichita. Available at: http://wichitaliberty.org/wichita-government/wichita-city-council-fails-support-informing-taxed/ Accessed 31 Aug. 2015. ↩