The Garden City Commission on July 1 approved an interlocal agreement with Finney County that defines how proceeds from a proposed Finney County sales tax on the Nov. 4 ballot would be administered and continued the joint sales tax oversight board used in 2017.

The agreement is tied to the county's pending ballot process under state law (House Bill 2275) that would permit a half-cent local retailer sales tax to fund courthouse, jail, law enforcement center or other county administrative facilities. City staff told commissioners the county will finalize ballot language in August and that the county board will consider the interlocal agreement at its July 7 meeting.

The interlocal approval came as commissioners also voted to pursue use of the building at 1210 Fleming as a temporary facility for the Garden City Police Department (GCPD) and to explore co-location with the Finney County Sheriff's Office. The commission approved a memorandum of understanding (MOU) with Finney County to share the facility and to split relocation and remodel costs evenly between the agencies for individually owned and shared furniture, fixtures and equipment. Commissioners also approved a First Amendment to the lease for 1210 Fleming to add approximately 6,500 square feet to the city's previously approved 24,000-square-foot lease.

City staff said preliminary drawings indicate sufficient space to house both GCPD and a sheriff's office presence, with separate agency space and shared common areas. The parties told the commission they intend to reuse furniture, fixtures and equipment from the current Law Enforcement Center (LEC) where possible to limit costs. Staff estimated the anticipated remodel at roughly $4.22 million to $4.50 million and said short-term notes or short-term bond financing are planned for capital costs; the MOU proposes splitting capital costs evenly between the city and county.

Commissioners asked for clarity on how sales-tax proceeds could be used if the ballot language is broad; staff said the statutory exemption language counties use can be broad but that county ballot language could narrow uses. Commissioner concerns focused on protecting the police department's timeline for occupying the temporary facility and ensuring ballot language stays sufficiently specific so proceeds are used as voters expect.

Commissioners were told the lease gives the city an option to buy the building during the lease term; the purchase price escalates 2.5% on each anniversary of the lease. Staff also said the portion of the building required for the sheriff's occupancy would not be available until Oct. 31, so the city portion could proceed with design and remodel prior to the sheriff's move-in date.

All three related items'the interlocal agreement, the MOU to share 1210 Fleming and the First Amendment to the lease for 1210 Fleming'were approved by voice vote.

Why it matters: The actions set the administrative framework for how future sales-tax proceeds would be managed if Finney County voters approve the ballot question in November, and they accelerate a temporary relocation plan intended to move the city's police operations out of the LEC while long-term options are worked through with the county.

Commissioners noted the approvals are not final until the county approves the interlocal agreement and the county commission considers the MOU and related items at its July meeting; staff said the city and county staffs have been working for months and expect further decisions by the county in early July.