Continue as is until 2011 Not recommended by Task Force or Exec Board
Positive
Easiest to do, path of least resistance
Draw Backs
Lake is still perceived as a financial drain on the city
Annexation is still a possible revenue source for the city at any time
The lack of action will further uncertainty about future lease and annexation status, decreasing values.
Lease expires in 2011, future lease status uncertain
Limited or nonexistent financing for lake homes
No possibility of improvements or better maintenance
Severe detriment to economic stability of the area
LONG TERM LEASES WITH ANNEXATION
Renegotiate a long term (99yr) individual leases with annexation. City would annex lake property and continue to be responsible for governing, maintenance and improvements.
Positives
Lake residents could vote in city elections.
Long-term real estate financing should be available
Draw backs
Approximately 50% increase in taxes to city paid by lake home owners
City’s interest in improvements and maintenance historically has been marginal
Still have the instability of ever changing ordinances and rules with each new city council.
LONG TERM LEASE NO ANNEXATION
Renegotiate a long term (individual) lease with the city
Positives
Some degree of stability
Long-term financing available
Draw backs
Same problems continue
Long-term Master Lease
No Annex Lake Kahola Model Lake assoc incorporates and leases all but water and dam from city, one master lease. Lake assoc in turn leases to home owners and provides for improvements, maintenance, etc
Positives
Ends most of city’s expense and daily involvement in day to day management( saves city over $200, 000/yr)
Lake assoc (self governing) is responsible for operation, maintenance and improvements.
Some what stabilizes cost to residents
Long term financing available for real estate
Increased economic growth
Draw Backs
Still leased lots
Self maintenance and operation may be difficult
Grants and loans for improvements, may not be possible
Not an ideal solution as Lake Kahola is now moving towards a “buy out”
IMPROVEMENT DISTRICT SUMMARY
District Purchase, no Annexation City Retains Water and Dam Governed and Maintained by Improvement District Lake Wabaunsee Model #1 Recommendation of Governance Task Force and Exec Board
Summary of an Improvement District
Established, Governed, and operated under KSA 19-2753 available at www.kslegislature.org Board of three elected Directors
Incorporated through the county commission by petition and official county election (locally registered voters that pay real property tax).
Self governing, responsible for all maintenance and infrastructure.
Ability to raise funds, also a limited ability to levy taxes (by vote only)
Eligible for Grants, and low interest loans.
Improvement District
Positives
Ends City ’s obligation to govern and maintain lake (over $200,000/yr savings for city)
More cash for city to operate. City would receive an annual payment check from the district, or a lump sum payment.
Self governing, residents directly responsible for improvements, maintenance, regulations, etc.
Residents own lots and control their future
Long term financing available for building and buying lake property
Increase economic growth: building increased local spending, and resulting tax revenues.
A “doable” solution, follow Lake Wabaunsee’s model.
Draw Backs
Requires a large dedicated effort to accomplish.
MUST be lead by quality volunteers, separate from the Exec Board.
Significant up front cost for legal and negotiations
Research and progress will move forward only with great unified effort.
