Fiscal Year 2009-Fiscal Year 2009-2010 Budget 2010 Budget

Public HearingPublic HearingJune 4, 2009June 4, 2009

Budget ApproachBudget Approach Budget Priorities Budget Priorities

Based on the 2007 City Council Survey ResultsBased on the 2007 City Council Survey Results EconomyEconomy

Decreased Property ValuesDecreased Property Values Flat Sales Tax growthFlat Sales Tax growth Reduced Building Permit ActivityReduced Building Permit Activity

Guiding FactorsGuiding Factors 3-Year Financial Forecast3-Year Financial Forecast Fund Balance PolicyFund Balance Policy

The budget is a The budget is a financial guidefinancial guide that is also used that is also used to to evaluate evaluate past priorities, past priorities, communicatecommunicate with with citizens and citizens and measuremeasure performance performance (GFOA (GFOA Budget Objectives)Budget Objectives)

Budget ProcessBudget Process Financial AnalysisFinancial Analysis

Fiscal Year 2008-2009 year-end revenue and expense Fiscal Year 2008-2009 year-end revenue and expense projection reviewprojection review

Fiscal Year 2009-2010 revenue projectionsFiscal Year 2009-2010 revenue projections 3-Year Financial Forecast development3-Year Financial Forecast development

Departmental Budget DevelopmentDepartmental Budget Development Cost containment implementationCost containment implementation Mission-critical expansion request reviewMission-critical expansion request review

Budget Review and AdoptionBudget Review and Adoption Finance & Personnel Committee review - February to Finance & Personnel Committee review - February to

MayMay Public Hearing - June 4Public Hearing - June 4 Council follow-up - June 11Council follow-up - June 11 Budget adoption - June 18Budget adoption - June 18

New Fiscal Year Begins – July 1New Fiscal Year Begins – July 1

City Council Budget City Council Budget PrioritiesPriorities

Public SafetyPublic Safety Second year of four-year plan to add 21 Second year of four-year plan to add 21

Police OfficersPolice Officers

Storm Water ControlStorm Water Control $15.4 million bond issue projects are $15.4 million bond issue projects are

underwayunderway

Sewer Maintenance (Inflow Sewer Maintenance (Inflow &Infiltration Reduction)&Infiltration Reduction) Funded by Water & Sewer Utility FeesFunded by Water & Sewer Utility Fees

City Council Budget City Council Budget PrioritiesPriorities

Pavement Management Pavement Management ServicesServices Crack Seal Program implemented Crack Seal Program implemented

Code Enforcement & Property Code Enforcement & Property MaintenanceMaintenance Re-assigned Building Inspector to Re-assigned Building Inspector to

Neighborhood Services OfficerNeighborhood Services Officer

Budget Budget AccomplishmentsAccomplishments

Zero-based BudgetingZero-based Budgeting Administration, Purchasing, Human Resources, Administration, Purchasing, Human Resources,

Fleet, Information Technology Services, Central Fleet, Information Technology Services, Central Building Services, and FinanceBuilding Services, and Finance

Cost ContainmentCost Containment Evaluate vacant positionsEvaluate vacant positions

6.5 full-time equivalents on hold6.5 full-time equivalents on hold Defer consultant studiesDefer consultant studies Without Public Safety expansions, Fiscal Year Without Public Safety expansions, Fiscal Year

2009-2010 General Fund expenditures reflect a 2009-2010 General Fund expenditures reflect a $137,053 decrease from the Fiscal Year 2008-$137,053 decrease from the Fiscal Year 2008-2009 budget. 2009 budget.     

Summary of All FundsSummary of All FundsTotal Budget $171,723,220Total Budget $171,723,220

General Fund$55,691,584

32%

Capital Projects Funds$48,908,939

29%

Enterprise Funds$40,304,826

24%

Internal Service Funds$10,306,660

6%

Debt Service Funds

$9,141,668 5%

Special Revenue

Funds$6,016,326

3%

Trust& Agency

Funds$1,353,217

1%

Summary of All Funds by Fund Type

General Fund General Fund Expenditures Expenditures

$55,691,584$55,691,584

Public Safety$34,273,231

62%

Public Works$11,404,521

20%

General Government$7,097,298

13%

Codes & Development

$2,501,701 4%

Interfund Transfers$414,833

1%

General Fund Expenditures by Operational Type

Special Revenue FundsSpecial Revenue Funds$6,016,326$6,016,326

Parks and Recreation$3,179,020

53%

Legacy Park Community Center

$1,565,922 26%

Aquatics Center$727,134

12%

Gamber Center$340,155

6%

VAWAGrant

$180,720 3%

Transportation Development

Districts$23,375

0%

Special Revenue Funds by Fund

Debt Service FundsDebt Service Funds$9,141,668$9,141,668

City General Obligation$6,828,305

75%

Park Certificate of Participation$2,313,363

25%

Debt Service Funds by Type

Capital Project FundsCapital Project Funds$48,908,939$48,908,939

Public Works$24,260,000

50%

Tax Increment Financing Districts

$11,055,372 23%

Water and Sewer$11,267,567

23%

Airport$1,697,000

3%

Landfill$264,000

0%Parks

$365,000 1%

Capital Project Funds by Fund

Enterprise FundsEnterprise Funds$40,304,826$40,304,826

Water Utility32,922,434

82%

Solid Waste$3,252,118

8%

Airport$2,820,550

7%

Recreation Center$1,309,724

3%

Enterprise Funds by Type

Internal Service FundsInternal Service Funds$10,306,660$10,306,660

Fleet5,075,709

49%

Information Technology Services

(ITS)$3,071,425

30%

Central Building Services

$1,316,168 13%

Workers Compensation

$740,000 7%

Short-term Disability$50,000

1%

Self-Insurance$41,358

0%

Unemployment$12,000

0%

Internal Service Funds by Fund

Trust & Agency FundsTrust & Agency Funds$1,353,217$1,353,217

Business and Industry439,504

32%

CDBG Entitlement$309,700

23%

Cemetery Trust$229,013

17%

Road and Bridge Escrow

$375,000 28%

Fiduciary Funds by Fund

General Fund Revenue Projections

  FY 07-08 FY 08-09 FY08-09 FY 09-10

Revenues: Actual Budget Projected Budget

Property Tax $15,852,674 $16,713,335 $16,653,810 $16,323,691

Sales Tax 12,395,589 12,047,648 12,523,762 12,476,723

EATS (1,316,622) (1,322,213) (1,162,894) (1,290,008)

Franchise Tax 14,662,791 12,246,959 12,674,396 12,794,396

Cigarette Tax 426,115 465,900 442,605 420,475

Motor Vehicle Tax 2,814,276 2,953,685 2,626,689 2,490,638

Intergovernmental 872,879 1,002,715 1,002,715 802,172

Charges for Services 3,463,853 3,058,865 3,335,712 3,410,712

Licenses and permits 1,941,625 2,164,855 1,450,778 1,179,870

Fines and Forfeitures 1,587,744 1,627,588 1,524,274 1,524,274

Interest 947,237 580,797 906,177 583,493

Other 1,619,827 1,919,038 1,477,210 1,477,210

Transfers In 2,259,410 2,904,668 2,867,257 3,764,085

Total Revenues $57,527,397 $ 56,363,840 $56,322,491 $55,957,731

$ Change (Year-Year) (1,163,557) (1,204,906) (364,760)

% Change (Year-Year) -2.02% -2.09% -0.65%

General Fund RevenuesGeneral Fund Revenues$55,957,731$55,957,731

Property Tax16,323,691

29%

Franchise Tax12,794,396

23%

Sales Tax11,186,715

20%

Other3,803,656

7%

Charges for Services3,410,712

6%

Other Tax2,911,113

5%

Transfers In3,764,085

7%

Licenses and Permits1,179,870

2%

Interest583,493

1%

General Fund Revenues by Source

2008 Property Tax Levy: Lee’s Summit R-7 School 2008 Property Tax Levy: Lee’s Summit R-7 School DistrictDistrict

(within Lee's Summit/Jackson County Boundaries)(within Lee's Summit/Jackson County Boundaries)

Total Levy: $8.6338 per $100 assessed valuation

* Includes Metropolitan Community College, Mid-Continent Library, Board of Disabled Services, Mental Health, and State Blind Pension

R-7 School District$5.8359

68%

City of Lee's Summit$1.4926

17%

Jackson County$0.5430

6%

Other*$0.7623

9%

Breakout of 2008 Property Tax Levy by Taxing District

General Fund ExpendituresGeneral Fund Expenditures

Expenditures:FY 2008-09

Budget FY 2009-10

Proposed

Personal Services $38,606,974 $ 39,262,961

Commodities 2,177,540 2,349,228

Contractual Services 7,176,258 7,113,770

Maintenance and Repairs 3,924,820 4,269,709

Utilities & Fuel 2,050,871 2,198,126

Capital Outlay 560,503 82,957

Operating Transfers Out 758,851 414,833

Total Expenditures $55,255,817 $ 55,691,584

$ Change 435,767

% Change 0.79%

General Fund ExpendituresGeneral Fund Expenditures$55,691,584$55,691,584

Personal Services 39,262,961

70%

Contractual Services 7,113,770

13%

Maintenance & Repairs 4,269,709

8%

Commodities 2,349,228

4%

Utilities & Fuel

2,198,126 4%

Operating Transfers414,833

1%

Capital Outlay 82,957

0%

General Fund Expenditures by Line Item

General Fund BalanceGeneral Fund BalanceThree-Year Financial Three-Year Financial

ForecastForecast  FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13

  Projected Projected Projected Projected Projected

Total Revenues 56,322,491 55,957,731 57,219,040 59,218,906 60,857,072

Total Expenditures 54,431,303 55,691,584 57,259,062 60,490,251 61,969,213

Revenues Over/(Under) Expenditures $ 1,891,188 $ 266,147 $ (40,021) $ (1,271,346) $ (1,112,141)

Fund balances—beginning $ 21,201,763 $ 23,092,951 $ 23,359,098 $ 23,319,077 $ 22,047,731

Fund balances—ending $ 23,092,951 $ 23,359,098 $ 23,319,077 $ 22,047,731 $ 20,935,589

Ending fund balance as a % of expenditures 42.43% 41.94% 40.73% 36.45% 33.78%

Personnel Expansions Personnel Expansions General Fund OnlyGeneral Fund Only

Position # Department FY 09-10

Court Security Officer 0.75 Municipal Court $ 19,500

Police Officer 7.00 Police $ 501,375

Communications Specialist 1.00 Police $ 51,945

Administrative Reassignments 0.00 Administration $ 0

Total 8.75   $ 572,820

Other Expansions Other Expansions General FundGeneral Fund

Fleet: $22,267Fleet: $22,267 Information Technology Services: $165,879Information Technology Services: $165,879 Request for Proposal (RFP) Project for Request for Proposal (RFP) Project for

Enterprise Resource Planning (ERP): Enterprise Resource Planning (ERP): $77,305$77,305

Total All General Fund Expansions: $838,271Total All General Fund Expansions: $838,271

Future Discussion Issues Future Discussion Issues For Fiscal Year 2009-2010For Fiscal Year 2009-2010

• Review of Airport Business PlanReview of Airport Business Plan• Live broadcasts of the Planning Live broadcasts of the Planning

Commission meetingsCommission meetings• Consolidation of City Hall office Consolidation of City Hall office

spacespace

Future Funding Needs: 2010 Future Funding Needs: 2010 Bond ElectionBond Election

Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) SoftwareSoftware

Police/Fire Radio System ReplacementPolice/Fire Radio System Replacement Storm Water UtilityStorm Water Utility Police Firing RangePolice Firing Range Water Operations/Service CenterWater Operations/Service Center Cultural Arts CenterCultural Arts Center Streetlight PurchaseStreetlight Purchase Sidewalk ImprovementsSidewalk Improvements

Questions?Questions?

Council Action: motion Council Action: motion to direct staff to draft to direct staff to draft

an ordinancean ordinance