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City officials released the latest annual report on the so-called Lincoln On the Move projects — which shows the city spent $19.3 million of the sales tax revenue on 27 lane miles of street improvements this year.

But most of the news conference was spent touting the overall benefits of the program — part of what Gaylor Baird said is part of a “vital� community conversation before any official announcement about what happens next.

The sales tax expires in September, and although city officials did not announce plans for a ballot initiative Thursday, if it happens, it would have to be approved by the City Council and is likely to be on the city election ballot this spring.

“Simply put, with Lincoln on the Move we have seen the acceleration of our community’s economy, safety and quality of life. Without Lincoln on the Move, $18 million in annual street funding goes away, a severe blow to our community’s momentum and quality of life,� she said.

The news conference included a number of stakeholders including Beau Daffer, president of the Lincoln Home Builders Association, Jason Ball, president and CEO of Lincoln Chamber of Commerce, and Kyle Fischer, executive vice president of the Realtors Association of Lincoln.

City Council members Sändra Washington, Bennie Shobe and Brodey Weber were there in support, as was Jeanne McClure, co-chair of the city’s advisory committee on transportation, and Fire Chief Dave Engler, who stressed how important well-maintained streets are for emergency vehicles to respond quickly to calls.

Voters approved the quarter-cent sales tax in May 2019 by a razor-thin 51% to 49% margin, even though it faced no formal opposition.

The plan in 2019 was backed by a coalition of business groups and individuals and the campaign cost more than $200,000. The city spent another $265,000 on an educational campaign touting the benefits of the plan, which led to a City Council resolution requiring the mayor’s office to disclose to the council any dollars spent on education campaigns related to a ballot initiative.

In 2019, the sales tax increase was a compromise negotiated with a number of business groups including the Chamber of Commerce, Realtors, the Lincoln Independent Business Association and home builders. Part of that agreement was to freeze the city’s impact fees at the 2018 rate for the next five years.

A total of 73.5% in sales tax revenue is allocated to existing street improvements; 25% goes to new construction and 1.5% goes to the Railroad Transportation Safety District for the North 33rd Street and Cornhusker Highway railroad crossing project.

Gaylor Baird said officials have been meeting with stakeholders about the sales tax for some time to find out what people like, what has worked and what improvements are needed. Those discussions have included whether to ask for more than a quarter-cent.

“The first Lincoln on the Move committee identified a gap in street funding that far exceeds what a quarter cent can fill,� she said. “But all of us want to strike a balance. We want to make sure that we continue to have an affordable city, a great quality of life and well-maintained streets. ... We are sensitive to costs but also really, really aware of how important well-maintained streets are for safety, for economic growth and our quality of life.�

Ball, with the chamber, said maintaining the city’s streets is vital to economic development and fostering job creation.

Daffer said home builders support the sales tax because streets play a vital part in increasing housing availability in Lincoln, and more available homes lowers housing costs.

“No streets, no houses,� he said. “I mean, it’s that simple.�

By the time the quarter-cent sales tax expires in September, the city expects it will have invested $102 million for work on 163 lane miles of existing residential streets, arterials and new construction. To date, the dollars have been used for 55 street improvements and new construction projects. City officials anticipate completing another 10 projects before the sales tax expires.

Liz Elliott, director of Lincoln Transportation and Utilities, said that without the sales tax revenue, the community faces a future with fewer street improvements, longer wait times for street projects and higher street repair costs as interest rates and material costs rise.

“At the city of Lincoln, we will continue to build new streets and maintain the existing ones to serve our growing community,� she said. “However, without additional sales tax funds to offset a potential future gap in funding, we would need to prepare for a much different reality.�

This year, sales tax revenue paid for eight street projects: the 11th Street corridor; West Fletcher Avenue and West Highland Boulevard; Leighton Avenue from 48th to 70th streets; 17th Street from A to S streets; Normal Boulevard from 33rd to 70th streets; 84th Street from Pinedale Avenue to Sandalwood Drive; the Country Club neighborhood; and 14th Street from Yankee Hill to Pine Lake roads.

Next year, the city plans to spend an additional $18 million on 10 projects: 33rd Street and Fletcher Avenue from Superior to 27th streets; Northwest 12th Street from West Adams Street to West Highland Boulevard: the O Street downtown corridor; 27th Street from Nebraska Parkway to South Street; 40th Street from A to O streets; Vine Street from 66th to 70th streets; Eastridge neighborhood; 48th Street from Normal to Cotner boulevards; South 70th Street from Pioneers Boulevard to Van Dorn Street; Pine Lake Road from 14th to 27th streets.