Budget Presentation FY13

City of Lee’s Summit, Missouri Fiscal Year 2012‐2013 Budget

June 7, 2012

B d tA Budget Approach h • Top Priorities Funded in the FY13 Budget: Top Priorities Funded in the FY13 Budget: – – – –

Public safety Public infrastructure Economic development Economic development Customer service

• Guiding Factors – 5 year financial forecast 5 fi i lf t – Fund balance policy

• Purpose Purpose of the budget is to serve as the financial guide, of the budget is to serve as the financial guide evaluate past priorities, communicate with citizens, and develop performance measures (GFOA Budget Objectives)

B d tP Budget Process Financial Analysis December 2011

FY12 mid‐year projections due

February 2012

Review of general fund budget scenarios

Budget Review and Adoption March 12

Presentation of City Manager's FY13 general fund budget to Budget Committee begins*

May 14 & 29

Televised budget presentations from departments

June 7

Public hearing

June 21

Budget adoption d d

New fiscal year begins: July 1 * The Budget Committee met six times prior to this public hearing. They support the City Manager’s budget recommendations subject to revisions that will be discussed.

General Fund: Fund Balance l d d l General Fund Year End Balance Moderate Revenue Growth $ $30,000,000

$25,000,000 20% of Exp

$20,000,000

$15,000,000

Current Balance

$10,000,000

$5,000,000 FY08

FY09

FY10

FY11

FY12 Bud

FY12 Proj

FY13

FY14

FY15

FY16

FY17

Projected

Fiscal Year

Beg. fund balance:

FY13 $ 11,559,540

FY14 $ 12,496,020

FY15 $ 13,848,655

FY16 $ 14,274,110

FY17 $ 14,729,391

End fund balance:

$ 12,496,020

$ 13,848,655

$ 14,274,110

$ 14,729,391

$ 15,646,199

End fb as % of exp:

21.31%

23.02%

23.16%

23.33%

24.22%

Note: The trend line does not include 5% for economic development opportunity that is approx. $3M above the shown line.

General Fund: FY13 Budget Highlights l d d i hli h • Public Safety: Fire Department management audit / accreditation process; new Police Fire Department management audit / accreditation process new Police training facility • Public Infrastructure: Curb replacement; pavement management; sidewalk; sanitary sewer line improvement water main rehabilitation sanitary sewer line improvement; water main rehabilitation • Sustainable Development: Transit‐oriented development study; Rock Island Railroad Coalition efforts • Technology: Enterprise Resource Planning (ERP); Windows 7 migration • Communication and Citizen Engagement: Web‐based citizen engagement tool; comprehensive citizen survey; cable channel upgrades comprehensive citizen survey; cable channel upgrades • Performance Excellence: Organizational Business Plan • Arts and Culture: Bond election on cultural facilities Bond election on cultural facilities

Compensation & Benefits i & fi • Merit Increases: o The FY13 budget includes an average 2% increase for salaries based on a pay for performance system • Compensation Study: o The implementation of Phase 2 from the recent compensation and benefit study has been included in the FY13 budget. Phase 2 is a modified implementation plan that is proposed to take effect January 1, 2013 • Health Insurance: o Health insurance premiums were budgeted with a 10% increase based on preliminary figures • Collective Bargaining: o Compensation and Benefit figures in the recommended budget are subject to collective bargaining agreements.

FY13 Expansions i Fund

Item/ Program

General

Amount $0

Airport

VERP upgrade for snow plow

Information Technology Services:

Windows 7 conversion

$30,000

Alarm management software (Police),

$23,000

Gasboy upgrade/conversion (Fleet)

$60,000

Automatic paver (PW Operations) Automatic paver (PW Operations),

$95 000 $95,000

Fleet

$2,875

Ford scan tool

$3,000

Freon machine

$4,000

Parks (all funds):

Hallway & walkway lighting, fence capping, playground shade, ADA lift and ramp

$67,216

Solid Waste

Diversion expansion

$87,500

Water Utilities

Vacuum excavator

$44,500

Toughbooks (ITS),

$7,000

TOTAL

$424, 091

Budget Committee Recommendations •

Amend the City Manger’s proposed budget as follows: y g p p g Item •Reduce Mayor & City Council(CC) Travel

Amount

Totals $25,000

Eliminate Mayor & City Council: Mayor & City Council: •Eliminate • Telecommunications allowance • Car allowance • FICA/Medicare on allowances

9,396 20,400 8,510

Subtotal Mayor & CC expenses:

•

$63,306

•Eliminate general fund (GF) transfer to Arts Council

76,672

•Eliminate GF transfer to Beautification Committee

$70,678

Subtotal GF transfers:

$147,350

TOTAL AMENDMENT RECOMMENDED

$210,656

Per City Attorney interpretation, the recommended adjustments to Mayor & City Council compensation would not be effective until the next term of office for that councilmember’s position. So, those reductions would not be effective for the FY13 budget year.

General Fund Overview General Fund Overview

FY12 Orig Budget Orig.

YE Projected

FY13 Recommended

Variance from FY12 Budget

Revenues :

$57,731,577

$56,685,223

$58,516,007

1.4%

Expenditures:

-$58,311,420

-$57,892,069

-$59,436,976

1.9%

Operating Rev-Exp:

-$579,843

-$1,206,846

-$920,969

Revenues

$1,000,000 , ,

$1,000,000 , ,

$1,050,000 , ,

Expenditures

-$405,371

-$405,371

Final Rev-Exp

$14,786

-$612,217

One-Time:

$129,031

General Fund Revenues by Type y yp FY13: $59,566,007 Property Tax

Revenue Source

Budget 2012-2013

Sales Tax Other Taxes

6% 30%

Franchise Tax License, Permits & Fees Fines & Forfeitures Fees & User Charges Fees & User Charges

24%

Intergovernmental Interest 5%

24%

G & A Miscellaneous

Property Tax Sales Tax Other Taxes Franchise Tax License, Permits & Fees Fines & Forfeitures Fees & User Charges Intergovernmental Interest G&A Miscellaneous Interfund Transfers TOTAL

$17,433,405 14 213 657 14,213,657 2,975,612 14,396,746 1,142,674 , , 1,389,414 3,505,177 715,348 305,484 846,350 1,732,139 910,000 $59,566,006

General Fund Expenditures by Type General Fund Expenditures by Type FY13: $59,436,976

8%

Personal Services

Expenditure Type

Budget 2012-2013

Supplies Other Services

12%

Maintenance & Repairs Utilities

4% 71%

Fuel Capital Outlay Transfers

Personal Services Commodities Capital Outlay Contractual Services Debt Service Interfund Transfers

$41,998,727 2,901,753 33,000 14,024,858 68 478,570

TOTAL

$59,436,976

General Fund Expenditures b D

by Department Police 5%

Fire 33%

9%

PW Operations PW Engineering Finance

7%

Administration Codes 12%

Planning Law 26%

Department Police Fire PW Operations Finance PW Engineering Administration Codes Planning Law Courts

Total

FY12 Budget $19,043,736 15,595,990 7 096 639 7,096,639 4,941,443 3,690,710 3,503,864 1,424,374 1,024,262 1,173,735 816,667 $58,311,420

Courts

FY13 Requested $19,522,264 15,696,172 7 213 303 7,213,303 5,448,339 4,090,005 2,970,473 1,472,518 974,034 1,198,193 851,675 $59,436,976

Chg from FY12 Budget $ % $478,528 2.6% $100,182 0.6% $116 664 $116,664 1 7% 1.7% $506,896 10.3% $399,295 10.6% ($533,391) -15.0% $48,144 3.5% ($50,228) -4.9% 4.9% $24,458 2.0% $35,008 4.3% $1,125,556 1.9%

General Fund 5 Year Model General Fund 5 Year Model General Fund: 5-Year Revenue/Expense Model Moderate Revenue Growth FY13 Budget Scenario: 2% Merit; Comp Adj in Jan.; Property Tax rollup; FY14: Phase 3 Comp Plan FY10 Actual Revenues: Total operating revenues

FY11 Actual

FY12 Budget

FY12 Projected

FY13 Estimated

FY14 Projected

FY15 Projected

FY16 Projected

FY17 Projected

65,508,865

57,560,029

58,266,035

57,731,577

56,685,224

58,516,006

60,212,887

61,754,818

63,601,749

Percent Change

4 29% 4.29%

1 23% 1.23%

-0.92% 0 92%

-2.71% 2 71%

1 36% 1.36%

2 90% 2.90%

2 56% 2.56%

2 99% 2.99%

3 00% 3.00%

Salaries/Total Revenues

66.38%

66.84%

70.21%

71.09%

70.39%

70.62%

70.66%

70.43%

70.02%

Expenditures: Total operating expenditures Percent Change

53,450,634

54,715,461

58,390,532

57,892,069

58,629,526

60,160,253

61,629,362

63,146,468

64,592,058

0.51%

2.37%

6.72%

5.81%

0.41%

2.61%

2.44%

2.46%

2.29%

$

4,109,395 $

3,550,573 $

(658,955) $ (1,206,845) $

(113,520) $

52,635 $

125,455 $

455,281 $

916,808

Revenues - Expenditures $ One-Time: Revenues Expenditures Exergonix

4,109,395 $

3,550,573 $

(658,955) $ (1,206,845) $

(113,520) $

52,635 $

125,455 $

455,281 $

916,808

Revenues - Expenditures

Legal Settlement ERP Rev - Exp (after one-time) $

0 0 0 0

0 0 (1,405,280) (15,500,000)

0

(1 800 000) (1,800,000)

4,109,395 $ (15,154,707) $

1,000,000 0 0 0 (405 371) (405,371)

(64,326) $

1,000,000 0 0 0 (405 371) (405,371)

(612,216) $

1,050,000 0 0 0

1,300,000 0 0 0

300,000 0 0 0

0 0 0 0

0 0 0 0

0

0

0

0

0

936,480 $

1,352,635 $

425,455 $

455,281 $

916,808

Net change in fund balance including one-time $ 23,217,069 $ 27,326,463 $ 12,171,756 $ 12,171,756 $ 11,559,540 $ 12,496,020 $ 13,848,655 $ 14,274,110 $ 14,729,391 Fund balance—beg.

Fund balance—end. balance end Ending fund balance as a % of expenditures (exc one-time)

$ 27,326,463 27 326 463 $ 12,171,756 12 171 756 $ 12,107,430 12 107 430 $ 11,559,540 11 559 540 $ 12,496,020 12 496 020 $ 13,848,655 13 848 655 $ 14,274,110 14 274 110 $ 14,729,391 14 729 391 $ 15,646,199 15 646 199

51.12%

22.25%

20.74%

19.97%

21.31%

23.02%

23.16%

23.33%

24.22%

Summary of All Funds Summary of All Funds FY13 Expenditures: $177,609,567

Fleet 3%

ITS Solid Waste 2% 2%

Other Funds 2%

Parks Funds 4%

Airport 5% General 34%

General Capital Projects Water Utility Debt Service Parks & Recreation Other Funds Fleet Management ITS Solid Waste Airport TOTAL

Debt Service 5%

Water Utility 20%

Capital Projects 23%

Budget 2011-2012 $58,311,420 61 444 882 61,444,882 34,888,395 9,170,535 7,639,894 3,306,622 6 988 369 6,988,369 4,173,321 2,890,573 7,307,218 $ 196,121,229

Proposed 2012-2013 $59,436,976 40 908 068 40,908,068 35,807,541 9,415,910 7,700,036 2,957,533 5 896 364 5,896,364 3,948,636 3,203,130 8,335,373 $177,609,567

Summary of All Funds Summary of All Funds FY13 Revenues: $177,609,567

Intergovernmental 5%

Interest 1%

Accum. cap reserve 7%

Property Tax 21%

Interfund Transfers 6% Other 5%

Franchise Tax 8%

Fees & User Charges 28%

Budget 2011-2012

Sales Tax 19%

Property Tax Sales Tax Fees & User Charges Franchise Tax Oth Other Interfund Transfers Intergovernmental Interest Revenue Subtotal Accum. capital reserves TOTAL

36,160,081 29,284,373 44,388,105 15,430,308 11 066 856 11,066,856 14,906,963 4,582,306 1,578,699

Budget 2012-2013 37,494,294 34,278,261 49,188,241 14,396,746 9 181 900 9,181,900 11,413,678 8,492,415 1,255,542

157,397,691 165,701,077 38,723,489 11,908,490 $ 196,121,180 $ 177,609,567

Enterprise Funds Enterprise Funds FY13: $48,725,734

Solid Waste, 3,203,130 , 7%

Harris Pk Rec Center, Center 1,379,690 , 3%

Airport, 8,335,373 , 17%

Water Utility, 35,807,541 , 73%

Enterprise Funds

Budget Proposed 2011-2012 2012-2013 $ 46,398,122 46 398 122 $ 48,725,734 48 725 734

Change 5 0% 5.0%

Capital Project Funds Capital Project Funds FY13: $40,908,068 Parks and Recreation 504 000 504,000 1%

Public Safety 340,000 1%

Other 1,053,016 3%

Tax Increment Financing Districts 9,996,179 24%

Water Utilities 15 335 873 15,335,873 38%

Public Works 13 679 000 13,679,000 33%

Budget 2011-2012 Capital Improvement Budget

Proposed 2012-2013

$ 61,444,682 $40,908,068

Change -33.4%

Special Revenue Funds Special Revenue Funds FY13: $7,105,512 Summit Woods TDD Gamber Center Fiduciary Funds Fiduciary Funds 0% 6% 13% VAWA 1% Summit Waves 9%

LPCC 27%

Parks and Rec 44%

*Fiduciary funds include: Cemetery, B&I, and CDBG.

Summit Woods TDD Energy Efficiency Grant Gamber Center Legacy Park Com. Ctr. Parks and Rec Summit Waves VAWA Grant Fund Fid i Fiduciary Funds* F d * Total

Budget Proposed 2011-2012 2012-2013 $ 21,000 $ 21,000 265,996 -----377 849 377,849 391 561 391,561 1,900,318 1,890,168 3,105,995 3,144,429 628,367 655,752 101,114 101,114 976 938 976,938 901 488 901,488 $7,377,577 $7,105,512

Debt Service Funds Debt Service Funds FY13: $9,415,910

Park COP 32%

Debt Serv 68%

City General Obligation Park Certificate of Participation Total

Budget

Proposed

2011-2012

2012-2013

$6 6,239,647 239 647

$ 6,439,647 6 439 647

2,930,888

2,976,263

$ 9,170,535

$ 9,415,910

Change

2.7%

Internal Service Funds Internal Service Funds FY13: $12,017,367* Workers Comp 630,631 5%

CBS 1,275,908 11% WU Eq Repl 125,000 1%

ITS 3,948,636 3 948 636 33%

Fleet , , 5,896,364 49%

I t Internal l Service S i Funds F d

Budget Proposed 2011-2012 2012-2013 $ 13,418,893 13 418 893 $ 12,017,367 12 017 367

*Funds not detailed in graph: Unemployment Trust, Short‐Term Disability, and Insurance Trust.

Change -10.4% 10 4%

FY13 S FY13 Summary – All F d All Funds

Fun d Ty p e Gen er al Cap it al Pr o ject s Sp ecial Reven u e Deb t Ser vice En t er p r ise In t er n al Ser vice TOTAL

FY1 2 FY1 3 Bud g e t Re com m e n d e d $58,311,420 $59,436,976 61,444,682 40,908,068 7,377,577 7,105,512 9,170,535 9,415,910 46,398,122 48,725,734 13,418,893 12,017,367 $ 1 9 6 ,1 2 1 ,2 2 9 $ 1 7 7 ,6 0 9 ,5 6 7

Va r ia n ce f r o m FY1 2 Bu d g e t $ 1,125,556 (20,536,614) (272,065)

% 1.9% -33.4% -3.7%

245,375

2.7%

2,327,612

5.0%

(1,401,526)

-10.4%

-$ 1 8 ,5 1 1 ,6 6 2

-9 .4 %

2012 Projected Property Tax Levy 2012 Projected Property Tax Levy (within Lee’s Summit R‐7/Jackson County boundaries) Total Proposed Levy: $8.9654 per $100 assessed valuation p y $ p $

Jackson County $0.5298 6%

Other* $0.7801 9%

City of Lee's Summit $1.5505 17%

*Other= Jr. College, Library, Mental Health, Handicap Workshop, and Mo Blind Pension

R‐7 School District $6.1050 68%

Tax Levy Rate History i Calendar 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Color Key Levy Decrease Voluntary Rollback Levy Increase Voter approved rollup

FY (FY02) (FY03) (FY04) (FY05) (FY06) (FY07) (FY08) (FY09) (FY10) (FY11) ((FY12)) (FY13)

General 0.9600 0.9600 0.9057 0.9057 0.8900 0.8900 0.8690 0.8690 0.8690 0.8966 0.8966 0.9213

P&R Debt Service 0.1700 0.4800 0.1700 0.4800 0.1604 0.4800 0.1604 0.4800 0.1576 0.4800 0.1576 0.4800 0.1539 0.4697 0.1539 0.4697 0.1539 0.4697 0.1595 0.4697 0.1595 0.4697 0.1595 0.4697

Total City $ 1.6100 $ 1.6100 $ 1.5461 $ 1.5461 $ 1.5276 $ 1.5276 $ 1.4926 $ 1.4926 $ 1.4926 $ 1.5258 $ 1.5258 $ 1.5505

General Fund Property Tax Rate General Fund Property Tax Rate per $100 of Assessed Valuation 2009

2010

2011*

2012**

2012***

$.8837

$.8966

$.9213

$.9213

$.9401

$.8690

$.8966

$.8966

$.9213

$.9401

Voluntary Reduction

($ .0147)

none

($.0247)

none

(.0435)

Revenue Reduction

($243,290)

$0

($401,098)

$0

($692,267)

Statutory Tax Rate Authorized Actual/Potential Tax Rate Levied

* 1.82% decrease in assessed valuation ** Authorized levy rate for property tax revenue neutrality ***Revenue neutrality with assumed 2% decrease in assessed valuation in 2012

Q Questions?

Staff Recommended Council Action: A motion to direct staff to draft an i di ff d f ordinance approving the proposed Fiscal Year 2012 2013 annual budget Fiscal Year 2012‐2013 annual budget