Frequently Asked Questions
Raytown homeowners are currently paying a nickel on every dollar paid in property taxes. Our levy has not increased since 1978. The dollar bill shows who gets what on every dollar paid in property taxes.
Frequently Asked Questions
Question 1 – “Shall the City of Raytown, Missouri, issue its general obligation bonds in the amount not to exceed $30,000,000.00 to acquire, construct, reconstruct, extend and improve the City’s streets, roads, bridges and sidewalks?” The authorization of the bonds will authorize the City to maintain tangible property tax rates sufficient to pay the interest and principal on the bonds until fully paid.
Question 2 – “Shall the City of Raytown, Missouri issue its general obligation bonds in the amount not to exceed $7,200,000.00 to acquire, construct, reconstruct, extend and improve the City’s storm sewer system?” The authorization of the bonds will authorize the City to maintain tangible property tax rates sufficient to pay the interest and principal on the bonds until fully paid.
Question 3 – “Shall there be a $0.30 increase in tax levy on one hundred dollars valuation for general municipal purposes in the City of Raytown, Missouri.”
November 8, 2022
General Obligation Bonds, which are also referred to as GO Bonds, are municipal bonds that provide a way for state and local governments to raise money for projects that may not generate a revenue stream directly.
Further, GO Bonds are not backed by a specific revenue producing project or asset. Instead, they are backed by the City’s ability to tax, and raise taxes if necessary, in order to pay bondholders.
The GO bonds will be used to acquire, construct, reconstruct, extend and improve the City’s streets, roads, bridges, storm sewers and sidewalks.
If you own a home or pay property taxes, the bonds will be repaid from a modest increase in your property taxes. For a $100,000 home in the City of Raytown the increase would range from $50 to $143 depending upon the amount of the GO Bond disbursement and when the GO Bond disbursement amount is issued.
To calculate actual amounts, click here to go to the fillable property tax calculator.
Using GO bonds to help fund infrastructure projects offers the greatest advantages to taxpayers:
• GO bonds are secured by the City’s credit, results in the lowest possible interest rate for financing capital projects; and
• The cost of issuing bonds is generally lower as compared to other financing methods.
Finally, issuing GO Bonds allows the City to complete larger projects more frequently.
Yes. A significant percentage of the Transportation Sales Tax is dedicated to roadway repair, maintenance, and reconstruction. However, the estimated amount for roadway repairs is $500,000 – $700,000 annually, which is only enough to cover an estimated 1% of the City’s current needs.
More than 40% of the City’s roads are in poor condition. At the current rate, it would take an estimated 40 years or more to complete all the road and storm sewer repairs and reconstruction needed. The City has spent the last two years evaluating the needs and determining the areas of need and estimated cost for the improvements.
Last fall voters approved a local use tax. This “Use tax” only applies to some out-of-state and online purchases AND only collected when sales taxes are not collected. It went into effect March 2022 and is estimated to generate between $200,000 – $400,000 annually.
The amount generated will be used towards maintenance, snow removal and other essential City services.
In accordance with Section 26(f) of the Missouri Constitution and Section 95.135 RSMo, the final maturity of an issue of general obligation bonds must be no later than 20 years from the date of their issuance.
The City has spent the last two years evaluating and determining the areas of need and estimated cost for the improvements. The City has a preliminary project map showing the general location of areas that were determined to have the greatest need of full reconstruction based on the data. This map will be a guide to capital project plan for the bonds. The list may change over the years as projects may have to move up the list due changes to conditions.
The Board of Aldermen will vote on the specific projects that will be funded through the general obligation bonds.
Once the Board of Aldermen approve the projects, information will be posted on the City’s website.
Question 3 creates an annual revenue stream for essential City services such as maintenance and repair of roads and infrastructure from now and into the future.
Questions 1,2 and 3 work together to rebuild, reconstruct and maintain the City’s roads and infrastructure.
A mill levy is the assessed property tax rate. The current mill levy for the City is $0.0527 per $100 of assessed valuation.
If approved, the mill levy rate will increase by $0.30 cents. The levy would increase from $0.0527 cents (a nickel) to $0.0827 (eight pennies) per $100.00 of assessed valuation.
If voters elect not to approve Questions 1 & 2 regarding the GO Bond issuance, then the City will not have funding to keep up with the deterioration of the infrastructure. This bond issuance creates a dedicated funding source to pay for these projects.
If the voters approve Questions 1 & 2, but do not approve Question 3, then the City will not have long-term funding to be able to maintain the infrastructure.
The City completed a thorough evaluation of the condition of the roads, storm sewers and associated infrastructure with the assistance of professional engineering firms and surveyors. It was determined that more than 40% of the roads in the City are in poor condition.
The construction cost to fix a significant portion of the failing infrastructure has been estimated to be more than $50 million at this time with a potential of increase with continued delay. The City determined that a general obligation bond issue combined with an increase in the mill levy would provide the necessary funding to address the failing infrastructure.
A lesser amount will cause a delay in completing much needed projects and is too restrictive on the total number of projects to be financed.
No. Your property tax bill will not double, but there will be an increase in your property tax. For example, if the assessed value of your home is equal to $100,000, the increase would range from $50 to $143 depending upon when and the loan disbursement amounts. Click here to calculate actual amounts.
The good news: The money will be taken out in tranches (portions), to keep it affordable for taxpayers. Similar to a home equity line of credit – you use what you need up to your max and pay back over time.
Unfortunately, no. Our levy has not been increased since 1978. For every dollar paid in property taxes the City gets a nickel. Our current budget allows for minimal maintenance.
The money collected from the transportation sales tax covers about 1% of repairs and reconstruction of roads and infrastructure. At this rate it will take an estimated 40 years to complete all the road and storm sewer repairs and reconstruction needed.
If Questions 1 and 2 pass, the bond could go into effect by late 2022 or early 2023 based upon design and approval of projects.
If Question 3 passes, it could become effective by tax year 2023, depending on when Jackson County certifies the levy increase.