2009 Revised & 2010 Unified Government Proposed

BudgetJuly 13, 2009

Bright Future – 2013 and beyond Lean years between 2009 and 2012 Symbolic continued decrease in property

tax rates Maintained Commission goals and

priorities Expanded targeted service levels Diversify Revenues

To Control costs Implemented hiring freeze Delayed Capital projects

Anticipated new Casino Revenues Decreased property tax rate slightly Planned Prudent use of fund balance Maintained service levels

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

2002 2003 2004 2005 2006 2007 2008 2009

City & County General FundsRevenues Vs. Expenditures

Expenditures Revenues Ending Fund Balance

National Collapse of Housing Market

Credit Markets close down Financial Institutions default National Economic Recession Unemployment skyrockets State of Kansas Budget Crisis

$6.4 m cut from anticipated revenues Machinery & Equipment Tax elimination results in major revenue loss; reimbursement payments stopped

Special City-County Highway Fund

State Funding gone $2.7m Property Tax $5.5m Sales Tax $2.5m Mortgage Tax $1.1m Building Permits $1.4m Gaming Revenue $1m Investment Earnings $1.2m

$15.4 MillionMoney we had expected to receive, must NOW be cut from the Unified Government Budget

7% reduction in property values

15% Tax Delinquency rate Continuing Sales Tax decline Further reduction from State

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 Projected

City & County General FundsRevenues Vs. Expenditures

Expenditures Revenues Ending Fund Balance

“Police, Fire, Grass

Streetlights, among City of Topeka Cuts”

WIBW.com

“KC Council OK’s pact with

Firefighters Union that includes

concessions”

Kansas City Star

“City lays off employees as

it tries to address budget

shortfalls”

The Olathe News

“City Budget crisis may take

officers off streets”

Cincinnati.com

“Dallas City Council knows “brutal” budget cuts coming”

Wichita Eagle

“Overland Park wants to cut

budget by $67 m in 5 years”

Kansas City Business Journal

“Wichita considers

layoffs to cover budget

shortfall”

The Dallas Morning News

On the Expense Side Cut personnel expenses Eliminate non-essential services Reduce primary essential service levels

On the Revenue side SALES TAX - Give serious consideration to

increasing sales tax , which requires public support and referendum

ECEP - Economic Crisis Emergency PILOT Temporary inter-fund deferrals Federal Stimulus Dollars

EXPENDITURES - Implement overall reductions in expenditures across the organization generally of 10% or more

REVENUES - Selectively increase revenue opportunities to offset funding losses

SERVICES - Minimize impact on citizens by maintaining essential services and reducing non essential services

TAXES - Hold the line on the Property Tax Mill Rate; thus NO increase in Property Taxes and in fact most will see an average 7% reduction in their UG property tax bill for 2010

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

County 32.784 31.255 27.526 25.725 24.255 24.190 36.228 36.335 32.693 32.664 31.279 30.399 30.539 30.477

City 64.220 62.116 58.439 55.927 52.237 53.555 48.847 48.925 46.449 43.952 42.742 41.588 40.685 40.258

Total 97.004 93.371 85.965 81.652 76.492 77.745 85.075 85.26 79.142 76.616 74.021 71.987 71.224 70.735

0

20

40

60

80

100

Mill L

evy

Budget Year

City and County Mill Levies: 1996 - 2009

97

70

If current tax rate is maintained Tax payers would a see an average 7% decrease in UG tax bills resulting from a 7% average reduction in property values.

HIRING FREEZE and retirement incentives will result in a reduction of more than 300 positions/15% of workforce by April 1, 2010

AVOID LAYOFFS while positions will be eliminated, every effort is being made to avoid layoffs

REDUCTION IN PERSONNEL EXPENSES Must honor the collective bargaining process with the

multiple labor unions representing more than 60% of the workforce

Continue Salary/COLA freezes Furloughs begin this August through the end of 2010;

general fund employees would be off one day a month without pay excepting sworn public safety personnel

“Sacrifice of many to avoid layoff of individuals “

Proposed Furlough Schedule - 2009

2009 Date or Day to be determined*

Operational Status*

August Floater Open

September

September 4 Buildings Closed

October October 12 Buildings Closed

November Floater Open

December December 24 Buildings Closed

*Furlough Floater Day off to be scheduled similar as vacation**District Court may be required to be open, thus courts buildings only may be open on limited basis. Other offices such as D.A. and grant funded units such as Health Department, may be operating on limited open basis as well on dates scheduled for closure.

2010 Date or Day to be determined*

Operational Status**

January Floater Open

February February 12 Buildings Closed

March Floater Open

April Floater Open

May May 28 Buildings Closed

June Floater Open

July July 2 Buildings Closed

August Floater Open

September September 3 Buildings Closed

October October 11 Buildings Closed

November November 12 Buildings Closed

December December 23 Buildings Closed

*Furlough Floater Day off to be scheduled similar as vacation**District Court may be required to be open, thus courts buildings only may be open on limited basis. Other offices such as D.A. and grant funded units such as Health Department, may be operating on limited open basis as well on dates scheduled for closure.

Tom CooleyCommissioner, District 7

Don Ash, WYCO Sheriff

Joe Reardon, Mayor/CEO

To Reduce Major CostsIn Jail Operations

Unprecedented Cooperation Underway

John MendezCommissioner At-Large District 1

Moe RyanMunicipal Court Judge

Jerome GormanDistrict Attorney

Wayne LampsonChief Judge

To control the skyrocketing costs of housing inmatesImmediate efforts are underway to reduce the

average length of stay including:

FARM OUTS - Shift to alternate, lower cost facilities to house inmates that are farmed out

HOUSE ARREST - Expand options for utilizing House Arrest for inmates not posing a threat to the public

PROCESSING OF INMATES - More timely and efficient processing of inmates in and out of the WYCO facility

TRANSFER OF INMATES – Reducing holding times of inmates transferring to other facilities such as Kansas Department of Corrections (KDOC)

SENTENCING GUIDELINES – Review of practices in both District Court and Municipal Court but assuring steps taken do not endanger the citizens of Wyandotte County

Efforts underway estimated to reduce expenditures by:2009 - $1,050,0002010 - $2,700,000

Review of long-term need and options being undertaken as well

Public Safety recruit classes limited to funding from COPS/SAFER Grants

Major reductions in funding for Parks and Recreation Reduction in funding for Snow Removal; Weed cutting; Street

Cleaning Decrease in Public Transportation Services Cut UG funding for the County Historical Museum/limited operations

only Suspend County CiFi Program to KCK/Bonner Springs & Edwardsville Reduction in Building Security expenses by closing access points Staffing adjustment for Public Safety 9-1-1 Dispatch Center Reduction in funding for Senior Citizen Utility Rebate Scale back 3-1-1 Program

Freezing of all Capital expenditures excepting Grant and Federal Stimulus Funded projects

Mental Health – reduced from $628k to $565k CVB – reduced from $750k to $675k County Fair Board – reduced from $198k to

$77k Extension Service –reduced from $431k to

$388k Kaw Valley Arts – reduced from $48k to $18k Neighborhood Group’s NBR – cut 10% WYEDC – cut 10%

WYEDC – Assuming greater Eco Devo role Parks Rangers to Sheriff/PD First Responder to 9-

1-1 Manager of Accounting and Payroll merged Shifting responsibilities of Risk Management/WC Shifted Constituent and Organizational Affairs

duties To avoid layoffs – shift and retrain

Inter Fund Transfers and Deferrals – one time shift from existing UG accounts that must be repaid Employee Health Insurance Fund Environmental Trust Fund supported by the

Residential Solid Waste Management Program

Last year we increased the UG/BPU PILOT fee to 9.9% and would require reauthorization in 2010

Reluctantly propose increase to 12.8% as an emergency economic crisis relief measure

Increase would phase out 1% per year over the next three years

Temporary in nature - burns off in 3 years

9.9%

12.8% 11.9%10.9%

9.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2009 2010 2011 2012 2013

PILO

T %

Year

BPU PILOT PercentagesEconomicCrisis Emergency PILOT

Reserves 3%

Operating 80%

Debt Service 7%

Capital 10%

The Current 2010 Unified Government Annual Budget - $250.1* Million

All Funds

* Not including grants

Property Tax$71,046,532

28%

Sales Tax$36,276,000

15%

Franchise Tax$36,865,000

15%

Other Taxes$20,308,839

8%

Charges for Service

$41,184,63517%

Intergovt. Revenues

$13,067,5755%

Interest Income$2,929,800

1%

Fines/Fees$8,660,000

3%

Fund Balance$6,874,187

3%

Other$12,970,222

5%

SOURCES OF SUPPORT - 2010 PROPOSED BUDGET

TOTAL = $250,182,790

Property Tax$23,839,475

21%

Sales Tax$28,300,000

24%Franchise Tax$36,350,000

31%

Other Taxes$6,945,466

6%

Charges for Service

$9,706,2008%

Intergovt. Revenues$764,400

1%

Interest Income$172,300

<1%

All Other$10,884,007

9%

SOURCES OF SUPPORT - CITY GENERAL FUND

TOTAL = $116,961,848

2010 PROPOSED BUDGET

Property Tax$25,843,471

55%

Sales Tax$3,935,000

9%

Other Taxes$6,113,333

13%

Charges for Service$2,577,000

6%

Intergov. Revenues$2,030,000

4%

Interest Income$2,429,200

5%

All Other$3,846,291

8%

SOURCES OF SUPPORT - COUNTY GENERAL FUND

TOTAL = $46,774,295

2010 PROPOSED BUDGET

Must carefully monitor the situation as fund balances remain low

No room for slippage or surprises Must be cautious and conservative in

managing through these difficult financial times

Must also focus on restoring fund balances to adequate levels to maintain favorable credit status and bond ratings

May 7 7pm 1st Budget Public Hearing (CDBG)July 9 7pm Public Comment on proposed budget July 13 5pm Budget Presentation followed by Work

SessionJuly 16 4pm Budget Work Session – Set Maximum Mill

Levy Set Furlough Schedule

July 20 7pm *Budget Work SessionJuly 23 4pm Budget Work SessionJuly 27 4pm Budget Work SessionJuly 30 4pm Budget Work Session

5PM Public hearing7pm Adopt Budget & CDBG Consolidated Plan

ECEP Initiative will require meet and confer meeting with Board of Public Utilities

BUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM*Budget Work Session to be held immediately following

Standing Committee meetings

Our Bright future Casino dollars – est. in 2011/2012 STAR BOND pay-off – est. in 2013

The future will be different, and even after the recession recedes, the fundamentals for local government will evermore be changed from what we know from the past

Future remains bright, we will manage through the current challenges and be in a better position our organization and our community to be able to take advantage of opportunities

Our Citizens Outside agencies Other stakeholders such as Neighborhood

Groups Board of Public Utilities Our 13 Labor Unions The Unified Government Employees The Unified Government Commission

May 7 7pm 1st Budget Public Hearing (CDBG)July 9 7pm Public Comment on proposed budget July 13 5pm Budget Presentation followed by Work

SessionJuly 16 4pm Budget Work Session – Set Maximum Mill

Levy Set Furlough Schedule

July 20 7pm *Budget Work SessionJuly 23 4pm Budget Work SessionJuly 27 4pm Budget Work SessionJuly 30 4pm Budget Work Session

5PM Public hearing7pm Adopt Budget & CDBG Consolidated Plan

ECEP Initiative will require meet and confer meeting with Board of Public Utilities

BUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM*Budget Work Session to be held immediately following

Standing Committee meetings