Page 1

Annual Budget Fiscal Year 2014 City of Lee’s Summit


[Page intentionally left blank]


City of Lee’s Summit Annual Budget FY14

Table of Contents

Table of Contents Section 1: Introduction .............................................................................................................5 History ................................................................................................................................... 6 Mayor and City Council ......................................................................................................... 8 Organization Chart ................................................................................................................ 10 Budget Calendar.................................................................................................................... 12 Section 2: Administrative Summary ..........................................................................................13 City Manager’s Budget Message........................................................................................... 14 Long-Range Strategic Planning in Lee’s Summit ................................................................... 26 Section 3: Budget Overview......................................................................................................40 Fund Structure and Overview Numbers ............................................................................... 41 Budget Ordinance ................................................................................................................. 47 Financial Policies ................................................................................................................... 50 Section 4: Revenue Projections.................................................................................................66 Section 5: General Fund Overview ............................................................................................79 Section 6: General Fund Department Budgets ...........................................................................93 Administration ...................................................................................................................... 94 Codes Administration ........................................................................................................... 100 Finance .................................................................................................................................. 107 Fire ........................................................................................................................................ 115 Law ........................................................................................................................................ 121 Municipal Court .................................................................................................................... 127 Planning and Development................................................................................................... 132 Police ..................................................................................................................................... 139 Public Works Engineering ..................................................................................................... 146 Public Works Operations ...................................................................................................... 151 Section 7: Special Revenue Funds .............................................................................................159 Parks and Recreation Funds.................................................................................................. 161 Other Special Revenue Funds ............................................................................................... 199 Section 8: Capital Projects Funds ..............................................................................................203 Section 9: Proprietary Funds.....................................................................................................226 Enterprise Funds ................................................................................................................... 228


Table of Contents

City of Lee’s Summit Annual Budget FY14

Internal Service Funds........................................................................................................... 255 Section 10: Debt Service Funds .................................................................................................282 General Obligation Debt ....................................................................................................... 284 Park COP Debt ....................................................................................................................... 288 Appendix .................................................................................................................................289 Glossary................................................................................................................................. 290 Miscellaneous Statistics ........................................................................................................ 301


Section 1: Introduction


City of Lee’s Summit Annual Budget FY14

1: Introduction

HISTORY Over a hundred years ago, the small 11 block Town of Strother straddled the Missouri Pacific Railroad tracks. Today, that small town consists of 65.24 square miles and is known as the City of Lee's Summit. In the late 1800's, a man by the name of William B. Howard was drawn to this fertile, gently rolling prairie land with the dream of building a city. Today, nearly 93,000 residents have been enticed to this progressive, yet restful and family-oriented community atmosphere, with a unified dream to create a dynamic, vital city. From yesterday to today, the story of this once small town has been filled with the courage, dedication, and quiet determination of its citizens, making Lee's Summit an ideal city in which to live and work. On October 28, 1865, William B. Howard founded the Town of Strother by filing a plat containing the 11 blocks that currently encompass the downtown business district. At the time of incorporation, the population count stood at one hundred people. In November of 1868, the name was changed and the area incorporated as the "Town of Lee's Summit". Although the "Summit" portion of the name was obviously based on the fact the town's elevation is the highest point on the railroad between Kansas City and St. Louis, there are numerous opinions and theories on the origin of "Lee". According to one theory, the town was named after Civil War General Robert E. Lee, since incorporation took place shortly after the war and the majority of citizens migrated from the Southern states. However, another version suggests the town was named after a prominent early settler, Dr. Pleasant Lea. The discrepancy in the spelling of "Lea" has been attributed to railroad sign painters. Lee's Summit's most infamous citizen was Cole Younger, called "The Last of the Great Outlaws" by author Homer Croy. According to history, soldiers drove Younger to a life outside the law after his father's murder and subsequent robbery. While Union forces were enforcing Order #11, the command issued in 1862 ostensibly to burn homes belonging to those with Southern ties, Younger and his brothers were credited with saving some of the original homes within Lee's Summit, the most prominent of which belonged to William B. Howard. Order #11 helped to unify the transplanted southern population in Missouri and compelled Younger to join the Confederate guerrilla band known as Quantrill's Raiders. Cole Younger was arrested after an attempted bank robbery in Northfield, Minnesota. Following 25 years of imprisonment for his crimes, Cole Younger was paroled in 1901. Three years later, Younger returned to Lee's Summit where he lived as a model citizen until his death in 1916. His grave is located in the Lee's Summit Historic Cemetery. The Fire of 1885 demonstrated yet again the stamina personified by citizens in Lee's Summit. While most of the town's residents were attending Sunday morning church services, fire erupted in the downtown district, which consisted of dry, wooden buildings. A detailed account of the fire, as printed in the April 16, 1885, issue of The Lee's Summit Journal, stated the buildings burned "...like greased wood". Virtually the entire business district was destroyed and the loss aggregated at $87,000, with a total of 25

6|Page


1: Introduction

City of Lee’s Summit Annual Budget FY14

buildings consumed by the flames. However, the stalwart citizens took their losses in stride and promptly commenced to rebuild the town. Almost 30 years later, Mr. R. A. Long, a prominent Kansas City lumberman, began building his dream, which became a reality with the construction of Longview Farm. In 1912, Mr. Long purchased approximately 1,700 acres in the southwest portion of Lee's Summit. Mostly self-sufficient, the farm included five major barn groups and 42 buildings. When completed and functional, Longview Farm became internationally known for the horses and livestock contained within its white rail fences and was one of only three dozen such showplace farms. The history of Lee's Summit abounds with the tragedies and triumphs of courageous people who have never failed in their dream of creating a city that will continually progress and prosper. Most importantly, Lee's Summit is comprised of dedicated people who never lose touch with the basic values that make a community livable. We feel Lee's Summit has lived up to the dreams of its forefathers.

7|Page


City of Lee’s Summit Annual Budget FY14

1: Introduction

City of Lee’s Summit Mayor and City Council

Mayor Randy Rhoads District 1

Rob Binney

District 2

Kathy Hofmann

Brian Whitley

District 3

Derek Holland

Allan S. Gray II District 4

Ed Cockrell

Bob Johnson

Dave Mosby

8|Page


City of Lee’s Summit Annual Budget FY14

1: Introduction

The City of Lee’s Summit operates under a Mayor/City Council form of government. Mayor The Mayor is elected at-large for a four-year term and is recognized as the head of the city for all legal and ceremonial purposes and by the Governor of Missouri for all purposes of military law. The Mayor presides at City Council meetings, executes all ordinances, resolutions, proclamations, grants and executive orders. Any ordinance or resolution adopted by the City Council may be vetoed by the Mayor; however, the Mayor may only vote in the event of a tie. The Mayor presents a State of the City address at least once annually as to the affairs of the city and any recommendations of the Mayor. City Council The City Council consists of eight members. Two Councilmembers are elected by qualified voters from each of the four respective districts of the city, as provided by Section 9.4, City Council Districts. City Councilmembers shall be elected to serve staggered four-year terms. At each regular municipal election, Councilmembers shall be elected to fill the offices of those whose terms expire. Budget Committee A new City Council standing committee was established by Ordinance 7145 on February 16, 2012. This committee’s purpose is to review the City Manager’s proposed budget prior to its consideration by the City Council. The committee shall report on all bills, proposed ordinances, measures or questions referred to it pertaining to appropriations and the overall financial condition and future needs of the City. For the FY14 budget process, the committee consisted of the following members:

Bob Johnson, Chair Allan Gray Rob Binney David Mosby

9|Page


City of Lee’s Summit Annual Budget FY14

1: Introduction

Organization Chart

Governmental Fund Types

Proprietary Funds

10 | P a g e


1: Introduction

City of Lee’s Summit Annual Budget FY14 AWARD FOR DISTINGUISHED BUDGET PREPARATION

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Lee’s Summit, Missouri for its annual budget for the fiscal year beginning July 1, 2012. The award reflects the City’s commitment to meeting the highest principles of governmental budgeting. This signifies that Lee’s Summit’s budget rated proficient in serving as: a policy document, a financial plan, an operations guide, and a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

11 | P a g e


City of Lee’s Summit Annual Budget FY14

1: Introduction 2013 – 2014 Budget Calendar

The annual budget calendar is developed by the City Manager and Chairman of the Budget Committee. The calendar includes the Budget Committee meeting schedule and important milestones to guide the budget process.

FY 14 Budget Calendar Overview November 2012 Novemeber 1, 2012 November 26, 2012 December 3, 2012

Budget Kickoff LBP Training Begins December 2012 Pre Budget meetings with Internal Service departments & HR January 2013

January 14, 2013

Budget Committee Meeting:

January 14, 2013 January 25, 2013 January 2013 February 1, 2013 February 1, 2013 February 11, 2013

FY13 year end projections due for GF departments, Airport, B&I Fund City Manager review of FY13 Projections Departments prepare FY14 budget requests February 2013 FY14 Internal Services & Core Expenditure numbers due All FY13 Projections due Changes to the Schedule of Fees Due

February 11, 2013

Budget Committee Meeting:

February 14, 2013

City Council Work Session: Overview of Budget Process

February 20, 2013 February 2013 March 1, 2013

Department budget meetings with City Manager begin Parks and Recreation budget to Park Board March 2013 Expansion Requests are due

March 5, 2013

Budget Committee Meeting:

March 18, 2013

Budget Committee Meeting:

March 2013 April 2013

Department budget meetings with City Manager conclude April 2013 Annual Report to City Council

April 12, 2013

Budget Committee Meeting:

April 24, 2013

Budget Committee Meeting: Department Budget presentations

April 25, 2013

Budget Committee Meeting: Continued Department Budget presentations

May 1, 2013

May 2013 Notice of public hearing due by noon

May 8, 2013

Budget Committee Meeting: City Manager's budget presentation

May 13, 2013

Budget Committee Meeting:

May 16, 2013

City Council Meeting: PUBLIC HEARING

May 20, 2013

Budget Committee Meeting: ***TENTATIVE***

June 6, 2013

June 2013 City Council Meeting: Vote on Ordinance

12 | P a g e


Section 2: Administrative Summary


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

CITY MANAGER’S BUDGET MESSAGE May 16, 2013

Mayor Rhoads and members of the City Council, I am pleased to present to you the fiscal year 2013 – 2014 (FY14) budget for the City of Lee’s Summit. This budget is the product of the collective efforts and input from the City Council’s Budget Committee, the City Manager’s office, the City’s Management Team, and budget staff. The purpose of this budget is to strategically allocate the financial resources that will be used to address the City’s goals and objectives and to ensure the delivery of services to our residents is planned in a fiscally responsible manner. The goals and objectives for the City of Lee’s Summit have been carefully considered and developed through strategic visioning and planning processes. This budget reflects a commitment to the priorities outlined in the Lee’s Summit City Council Strategic Vision and Goals, Lee’s Summit 360º: Charting Tomorrow Strategic Plan, and the Performance Excellence Five-Year Business Plan 2013-2018. The strategic priorities funded in the FY14 budget include: •

Economic Development – The City Council has created a vision and guide points for our community thanks to the recently adopted Economic Development Vision. This directive is being embedded into our operational plans and performance management systems. We are creating a new economic development process with the addition of a new assistant city manager position in the Administration Department. This position will help to shape and define the City’s development process through a new development review center. This single-point of contact for the development community will better serve first-time business owners and help them successfully navigate their journey to realizing entrepreneurial success. We have also embedded the Economic Development Vision adopted by the City Council through our business plan and operational measurements

Performance Measurement – Performance Excellence to continue efforts to improve the organizational operation for both internal and external audiences. Performance Excellence began with a dozen employee assessors who conducted initial research into our organizational processes with additional input from employees and partners. In FY14, employees will begin working toward achieving identified goals in the areas of Customer Focus; Organizational Communications; Delivery of Services; Fiscal Responsibility; and Workforce. These have been

14 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

built into our Business Plan that will focus on supporting the City Council’s community and vision goals.

I.

Community Branding – Continued support of the brand implementation to help entice and retain businesses, attract tourism and promote civic pride. The brand strategy, which was completed in August 2012, was the culmination of several years of work by staff, our community partners, and the Lee’s Summit 360 Branding Committee. Through the brand study we were able to discover what makes our community unique – important attributes in helping to sell a community whether it’s a potential economic development investor or a new family considering Lee’s Summit as their home.

Organization Audit of Internal Service Departments – A comprehensive review of policies, processes, and the financial condition of our internal service departments will be pursued to help identify areas for improvement and to ensure resources are optimally utilized.

Fire Dept Accreditation – to examine internal operations of the department through an approximately 16-month review process that will help guide future decisions of the department. A nationally recognized accreditation process will provide a structure for continuous improvement cycle and enhanced service delivery.

Police Facility upgrades and new court software – to continue the City’s overall commitment to funding public safety initiatives. Throughout the year, the Police Department headquarters will undergo a major construction to include an updated and remodeled detention facility as well as an onsite training facility with a firing range and a classroom/community room. Construction began in April 2013 and will be completed in FY14. There will also be a review and upgrade to the Municipal Court’s software during the new fiscal year.

I.

Budget Budget RequestRequest

Beginning on July 1, 2013, I am requesting a total budget of $200.3m for FY14. This amount is the sum of all budgets within the 70 different funds managed by the City’s Finance department. The budget for each fund has a specific purpose and is organized to help designate resources according to activities.

Total Budget FUND GENERAL FUND SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS ENTERPRISE FUNDS INTERNAL SERVICE FUNDS

$ $ $ $ $ $

FY13 Budget 59,436,976 14,890,768 9,415,910 33,247,812 48,725,734 11,892,367

FY14 Proposed $ 58,330,723 $ 11,541,395 $ 9,240,571 $ 66,981,933 $ 43,074,963 $ 11,094,093

TOTAL PROPOSED EXPENDITURES

$ 177,609,567

$ 200,263,678

15 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

The General Fund: The general fund includes budgets for 10 departments that provide the mission critical services to our residents, such as police and fire protection, street maintenance, planning, codes, court, and general administration of the City. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trust or major capital project) requiring separate accounting because of legal or regulatory provisions or administrative action. This includes the Parks, grant, business and industry, tax increment financing (TIF), and transportation development district (TDD) funds. Debt Service Funds: The city utilizes two funds to record the receipt and disbursement of monies used to repay principal and interest charges on city issued debt. The General Obligation Debt Service Fund and Park COP Debt Service Fund are used to account for the annual retirement of bonds issued from 2003 through 2013. Capital Project Funds: The capital improvement funds include budgets that allocate expenses for infrastructure improvements. The City’s capital projects are funded by a variety of different sources. The City’s road and bridge maintenance projects and capital improvements are funded by a ½ sales tax. Other projects are funded by tax increment financing and through the sale of general obligation bonds.

FY14 Budget Request 6% 29%

21%

GENERAL FUND SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS

6% 5%

ENTERPRISE FUNDS INTERNAL SERVICE FUNDS

33%

Enterprise Funds: The City’s enterprise funds hold the budgets for departments that operate in business-type activities. These funds rely on revenues generated from sales of materials or services. The enterprise funds include budgets for our Water Utilities, Solid Waste, and Airport activities. Internal Service Funds: The City uses internal service funds, or Proprietary Funds, to account for its fleet of vehicles and equipment, information technology systems, central building services, and trust funds. The internal service departments allocate costs for the reimbursement of services to other departments.

II.

II. General GFOutlook Outlook (5 year (5 year model)model)

Our City staff and elected officials have the significant responsibility of carefully managing the financial resources that have been entrusted to us by our citizens and community investors. To ensure that we are managing these resources to maintain fiscal strength we use our general fund five year model. The

16 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

model helps illustrate the financial impact of policy decisions while projecting the financial condition of our general fund. General Fund: 5-Year Revenue/Expense Model FY14 Conservative Revenue Growth Scenario includes: FY13 Projections; 2% Property Tax growth; 1.5 to 2% Sales Tax growth; 6-7% health insurance increase; 1% inflation assumption; 2% merit increase; big box online in mid-FY14; FY11 Actual Revenues: Total operating revenues

FY12 Budget

FY12 Actual*

FY13 Budget

FY13 Estimated

58,636,007

57,512,822

FY14 Budget

57,751,188

FY15 Projected

FY16 Projected

FY17 Projected

FY18 Projected

58,885,963

59,880,828

60,894,110

62,025,924

58,266,035

57,731,577

56,172,029

Percent Change

1.23%

-0.92%

-3.59%

4.39%

2.39%

0.41%

1.96%

1.69%

1.69%

1.86%

Salaries/Total Revenues

66.89%

70.21%

70.73%

71.69%

71.38%

71.29%

70.95%

71.63%

72.14%

72.55%

*unaudited

FY11 Actual Expenditures: Total operating expenditures Percent Change

Net Operating Rev - Exp

$

FY12 Budget

FY12 Actual*

FY13 Budget

FY13 Estimated

FY14 Budget

FY15 Projected

FY16 Projected

FY17 Projected

FY18 Projected

54,715,462

58,390,532

56,124,759

59,436,976

57,391,365

58,330,723

59,274,734

59,518,530

59,687,809

60,490,257

2.37%

6.72%

2.58%

5.90%

2.26%

1.64%

1.62%

0.41%

0.28%

1.34%

(800,969) $

121,457 $

(579,535) $

(388,771) $

3,550,573 $

(658,955) $

47,270 $

362,298 $ 1,206,301 $ 1,535,667

One-Time: Revenues Expenditures Exergonix

Legal Settlement ERP

1,000,000 (1,405,280) (15,500,000) (1,800,000)

Rev - Exp (after one-time) $ (15,154,707) $

(405,371)

(64,326) $

1,000,000

1,050,000

750,000 -622,524

1,180,000

180,000

180,000

180,000

(400,000)

647,270 $

249,031 $

248,933 $

600,465 $

(208,771) $

542,298 $ 1,386,301 $ 1,535,667

Net change in fund balance including one-time Fund balance—beg. $ 27,326,463 $ 12,171,756 $ 12,171,756 $ 12,819,027 $ 12,819,027 $ 13,067,960 $ 13,668,425 $ 13,459,654 $ 14,001,951 $ 15,388,252 Fund balance—end. Ending fund balance as a % of expenditures (exc one-time)

$ 12,171,756 $ 12,107,430 $ 12,819,027 $ 13,068,058 $ 13,067,960 $ 13,668,425 $ 13,459,654 $ 14,001,951 $ 15,388,252 $ 16,923,919 22.25%

20.74%

22.84%

21.99%

22.77%

23.43%

22.71%

23.53%

25.78%

27.98%

The City continues to respond to the challenges following the economic recession that began in 2007. The primary challenge is providing quality services to our residents with the lack of significant growth within the City’s revenue stream. This challenge is increasingly difficult as the City plans to balance the operating budget and limit the reliance on non-recurring revenues. Beginning in FY14, the City’s general fund budget will be incrementally reduced by approximately $1m from the current fiscal year ($59.3m to $58.3m). This reduction will minimize our use of the non-recurring revenues to $600,000 for the funding of daily operations. In FY15, without significant revenue growth, the budget will be reduced an additional $600,000 to achieve a balanced operating budget. Depending on Missouri Legislative actions this year, the City may need to consider the adoption of a “use tax” as a method to replace the recent loss of the local sales tax on automobiles. The implementation of the use tax would not only apply to the “Out-of-State” purchases of automobiles by our Lee’s Summit residents but it would also apply to “Out-of State” purchases, such as manufacturing equipment, and on-line purchases that exceed $2,000. Searching for additional revenue growth while controlling expenditures represents a necessary but balanced approach to improve the City’s financial condition. With decreased revenues and reduced expenditures, the general fund balance is projected to be $13.6m or 23.4% of expenditures in FY14. We continue to rebuild the fund balance in order to achieve

17 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

compliance with Resolution #04-07. This resolution created benchmarks for unanticipated emergency expenditures and unique economic development opportunities.

Thousands

Projected Fund Balance 20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 FY12

FY13 Budget

22.84%

21.99%

FY13 Projected FY14 Proposed 22.77%

23.43%

Fund balance—beg.

III.

FY15

FY16

FY17

FY18

22.71%

23.53%

25.78%

27.98%

Fund balance—end.

with Key Highlights III.GF Overview GF Overview with Key Highlights

The FY14 general fund budget assumes revenues of $58.9m and expenditures $58.3m. In FY14, conservative estimates have tempered the budgeted amounts for the City’s revenues. Overall, FY14 revenues are estimated to be 1.1% below the FY13 budget. This includes a 6.7%, or $883k, decrease in sales tax estimates. Overall, for FY14, general fund revenues are projected to be $58,931,188; this level is 3% above FY12 actual amounts, 1.1% below FY13 Budget, and 1.2% above FY13 year end projections. GF Revenues The primary support for general services comes from diverse revenue sources such as property taxes, sales taxes, and utility franchise taxes. Combined, these major revenue sources comprise approximately 76% of all general fund revenues. The balance of revenues is derived from user charges, fines and forfeitures, investment income, intergovernmental revenues and miscellaneous fees and charges.

18 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

General Fund Revenues 5 Year Trend $18,000 $17,000

Thousands

$16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000

FY10

FY11

Property Tax

FY12

FY13 Proj

Franchise Tax

FY14

All Other

Sales Tax

In our current fiscal year, the general fund has experienced better than expected revenues in our property and motor vehicle taxes. These increases have helped offset a decline in the City’s sales tax revenue. Full recovery from the recent economic downturn has not occurred in FY13 as sales tax is expected to be 8.6% under budget and shows no growth from FY12. Key Revenue Variances: Account Property Taxes • Sales Tax: FY14 revenues estimate a Sales Taxes 1.5% increase from FY13 year end Franchise Taxes Motor Vehicle Taxes projections. This increase is 3% Other Taxes & Forfeitures above FY12 amounts. FY14 will be Fines Licenses & Permits the first full year that the City will not Intergovernmental Charges for Services have to remit payments from the Investment Earnings Other Summit Woods tax increment Transfers In financing district. The gross sales tax Total revenue generated from the Summit Woods shopping center is expected to 6% add $959k in sales tax revenue. • Franchise Tax: Natural gas revenues were budgeted to be $507k less than 5% the FY13 budget. The decrease accounts for lower natural gas prices and milder weather. Also, the 3 year average for telephone and cable 24% franchise taxes have fractionally decreased resulting in a total franchise tax estimate of $14m for FY14

FY13 Budget

FY14 Requested

17,419,687 14,154,304 14,396,746 2,975,612 373,072 1,526,818 1,142,674 715,348 3,505,177 152,052 1,448,167 1,756,350 59,566,007

17,453,036 13,271,010 14,076,315 2,960,656 342,236 1,519,417 1,279,490 829,576 3,521,327 90,684 1,591,091 1,996,350 58,931,188

Change from FY13 Budget $ % 33,349 0.2% -883,294 -6.2% -320,431 -2.2% -14,956 -0.5% -30,836 -8.3% -7,401 -0.5% 136,816 12.0% 114,228 16.0% 16,150 0.5% -61,368 -40.4% 142,924 9.9% 240,000 13.7% -634,819 -1.1%

Property Taxes

3%

Sales Taxes Franchise Taxes 30%

Motor Vehicle Taxes Other Taxes Fines & Forfeitures Licenses & Permits Intergovernmental Charges for Services Investment Earnings

22%

Other Transfers In

19 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

Transfers In: The general fund will receive the final payment for the general fund loan that was made to construct the Gamber Center. The final payment of $1m is $250k more than last year’s amount.

GF Expenditures With the support of the Budget Committee, I have submitted a general fund budget that fulfills a commitment to only use half of the City’s non-recurring revenues for day to day operations. This commitment has resulted in a $1m reduction from FY13 budgeted expenditures. General Fund Expenditures 5 Year Trend

20,000

$35

18,000

$30

16,000

Thousands

12,000

$20

10,000 $15

8,000 6,000

$10

4,000

Salaries: Millions

$25

14,000

$5

2,000 -

$FY10

FY11

FY12

FY13 Proj

Benefits calc on Salary

Health/Dental

Other Supplies, Services

Utilities

Interdepartmental Charges

Salaries

FY14 Repairs and Maintenance

FY14 general fund expenditures are expected to be $939k, or 1.6% above FY13 year end projections but below the FY13 budget by $1.1m, or -1.9%. The anticipated savings is a result of forecasted vacancy savings, reduced utility expenses, and decreased purchases for supplies and fuel. FY13

FY14

Account Budget Requested The City’s expenses are the result of Personal Services 42,034,487 41,168,680 providing services to the residents in our Supplies for Resale 141,880 135,880 Other Supplies/Services 7,599,031 7,576,093 community. Our public safety services Repairs & Maintenance 1,470,447 1,292,363 provided by the police and fire Utilities 1,613,189 1,641,226 Fuel & Lubricants 796,241 692,078 departments comprise $34.5m, or 59%, of Miscellaneous 164,839 119,154 Capital Outlay 33,000 0 the total expenditures. Expenditures for Interdepartmental Charges 5,105,292 5,199,218 development activities and infrastructure Transfers 478,570 506,032 Total 59,436,976 58,330,724 design and maintenance account for $13.3m, or 23%. The remainder is used for legal and general administrative services.

Change from FY13 Budget $ % -865,807 -2.1% -6,000 -4.2% -22,938 -0.3% -178,084 -12.1% 28,037 1.7% -104,163 -13.1% -45,685 -27.7% -33,000 -100.0% 93,926 1.8% 27,462 5.7% -1,106,252 -1.9%

20 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

As is the case with most service oriented organizations, the primary expense is for personnel resources. These expenses amount to $41.1m, or 71%, of budgeted expenditures. A total of 531.24 full time equivalents (FTE) are employed in our general fund departments. This includes the City’s police officers, firefighters, engineers, maintenance workers, emergency responders and administrative personnel.

Personal Services

9%

Supplies for Resale

3% 2%

Other Supplies/Services Repairs & Maintenance

13%

Utilities Fuel & Lubricants Miscellaneous 71%

Capital Outlay Interdepartmental Charges Transfers

Key Expenditure Variances; • Personal Services: The FY14 budget includes an average 2% performance based merit increase for all employees. The general fund budget impact of the merit increase is $815k. Additionally, the City has budgeted an 8.8% increase in health insurance costs for the last six months of FY14 to account for impact of the Affordable Care Act. This increase is lower following the addition of a health insurance savings account (HSA) that is expected to save $96k in expenses. • Supplies, Services and Charges: Expenses for professional fees has been decreased by $285k as more projects are administered internally. • Inter-department charges: Charges for information technology support has increased $111k as the IT department finished the implementation of a new enterprise resource planning (ERP) financial software package and focused resources on projects funded in the general fund. • Budget Reductions: All general fund departments were instructed to reduce their initial department requests by 2%. These decreases have resulted in a budget that is $1.1m below FY13 amounts. Key Initiatives: The key initiatives funded in the FY14 general fund budget represent a focus on improving service delivery. The FY14 highlights include; • •

Public Safety: o Facilitate the implementation of new technologies (Predictive policing and e-Ticketing). o Implementation of a crime reduction zone Infrastructure Improvement: o Complete an American’s with Disabilities Act (ADA) transition plan for public right-ofway o Continuation of curb and sidewalk replacement o Continuation of pavement surface treatments Process Improvement o Implement comprehensive property and risk liability self insurance program o Implement a new business license system

21 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

Conduct citizen survey in conjunction with the performance excellence process Continue implementation of the “Small Business Development Process Management Action Plan” and the implementation of a centralized development program. Economic Development o Prepare redevelopment scenarios on various targeted sites o Develop a comprehensive land use development plan for the eastern 900 acres at the east 50 Highway entrance/gateway o Explore options for residential rental property and proactive code enforcement programs o Implement action steps to support the City Council’s Economic Development Vision o

IV.

Reductions IV.BudgetBudget Reductions The City’s general fund model indicated a structural deficit for FY14 due to diminished revenues in the current fiscal year. To address this situation, the management team and budget staff identified $2.2m of reductions from their original request to incrementally mitigate the impact of decrease revenues projected for FY14. The list below is a summary of the FY14 budget reductions. Employee related expenses ($452,987): Balancing the FY14 GF Budget • Positions: A total of 6.3 currently Target Amount = $58.3M vacant positions have been GF Revenue Projections $58,931,188 eliminated from the FY14 budget within the Codes, Public Works $58,331,188 Operations, Public Works GF Expenditure Target Engineering, Police, Court, and GF Request Planning departments. The Original Dept Request $60,427,879 reduction in personnel could impact ITS projects $79,646 the City’s ability to provide services if TOTAL: $60,507,525 new programs are created, or if there Reductions: is a significant increase of service Solution 1: Risk Mgmt Savings ($34,500) Solution 2: 2% Dept Reductions ($1,203,784) demands or development activity. Solution 3: Vacancy Savings ($800,272) • Overtime: Overtime costs were Solution 4: ITS Projects ($76,245) reduced to support only mission Solution 5: B&I Transfer ($10,000) critical activities associated with Solution 6: Arts Council ($16,000) departmental operations. Overtime Solution 7: Beautification ($36,000) costs that focused on public relation activities have been reduced. REVISED TOTAL: $58,330,724 • Training: Expenses for employee training and organizational dues have been reduced. Training and participation in professional organizations enables staff to improve and expand professional skills that

22 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

results in an improved level of service. A higher emphasis will be placed on “stay-at-home” training opportunities, such as webinars and local conferences. Supplies expenses ($501,796): • Maintenance Supplies: The expense to replenish the inventory of supplies has been reduced with the thought that existing supplies will be sufficient or that limited supplies will be used for additional activities. This reduction limits the availability of funds for additional repairs or services. • Fuels and Lubricants: City departments will minimize work related travel and continue to strive for efficient uses of vehicles for mission critical activities. Miscellaneous expenses ($214,501): • Professional Fees: The departments have proposed to reduce the reliance on professional services provided by contractors and consultants. The City uses these providers to supplement the delivery of accurate and professional services. These reductions are specifically targeted to legal compliance reviews, insurance analysis, and safety and risk management. Additional Reductions ($919,000): • The City Manager has proposed additional budget reductions to reach the targeted general fund expenditure amount of $58.3m. These additional reductions will impact funding for ITS projects, tourism and marketing initiatives, Art’s Council initiatives, and the Beautification Commission’s initiatives. They also include the budgeting of the naturally occurring vacancy savings for each general fund department. The total of the additional budget reductions is estimated to be $919k. In addition to budget reductions, the City’s Management Team also identified additional sources of revenue to offset the need for expenditure reductions. Additional Revenue ($34,500): •

V.

V.

Licensing and Special Events: It is expected that revenue from pet license fees will increase based on the ability of animal clinics to issue licenses that may not have been processed through Animal Control.

Capital Projects Capital Projects The capital budget is based on the 5-year Capital Improvement Plan (CIP). The CIP is a fiscally constrained planning document outlining the anticipated projects over the next 5-year period. Funding indicated in the first fiscal year of the plan is adopted as the capital budget for that year. The FY14 funding is considerably higher than the previous year’s budget. The majority of

23 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

the increase is due to the timing of several large projects that are being funded in the FY14 capital budget. Those projects and approximate FY14 net funding are; Bridges, Streets, and Signals Capital Project Funds • Lee’s Summit Road – Colbern FY13 to Gregory ($13m) Budget • Jefferson Street – Scherer to *Water & Sewer Construction 15,335,873 Stuart ($8m) Bridges, Streets, Signals 15,889,923 • Orchard St & Pryor Rd bond Facilities 340,000 Capital Equipment Replaceme 1,178,016 projects ($2.2m) Airport Facilities Parks Construction 504,000 • Water Operations Facility 33,247,812 Total ($12m) • Cultural Arts Facilities ($775k) *Net Budget (without transfers) Airport • Earthwork for runway 18-36 ($4.1m) VI.

VI.Expansion Expansion Items Items It is important for the City to pursue new tools and technologies to help improve efficiency and the delivery of service. In FY14, the City has designated funds for a new fuel management system and integrated municipal court records tracking system. These projects along with the projects continued from previous years will provide departments the resources to help improve processes and communication.

VII.

FY14 Proposed 21,305,000 31,169,000 2,559,000 803,500 4,579,000 1,043,000 61,458,500

Expansion Items (All Funds) Project Enterprise Resource Planning updgrades GIS Enhancements Fleet fuel management system Server upgrades Incode Municipal Court upgrade Concrete Saw Wing Plow Sewer Pipe Patch Equipment Total

Funding 97,000 6,000 74,800 20,600 21,000 6,000 14,000 6,387 245,787

VII.Summary Summary One of the City’s greatest strengths has been its positive financial condition and quality financial management. This budget serves as our statement to this shared commitment from the City’s elected officials, the City Manager, and management team to continue in this direction. Our next fiscal year has exciting opportunities on the horizon despite the fiscal challenges. A guiding vision from our elected officials and residents has called for initiatives that will create, “a culturally rich community with diverse economic sectors to create a prosperous and dynamic community.” Starting in FY14, with this budget, we will be able to build momentum to carry out this vision.

24 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

For FY14 as always, adopting the budget is an important responsibility; it serves as both an operational and financial plan for the delivery of city services, as well as a communication tool from the City to the citizens of Lee’s Summit and members of the financial community. Its implementation ensures careful and efficient use of the community’s resources and helps to maintain financial stability and sustainable growth into the future. It is my hope that we will continue to show stable and predictable fiscal decision-making by approving this budget on a timely basis. Sincerely,

Stephen Arbo City Manager

*Note*: The City Manager’s proposed budget as outlined in this message was amended by the Budget Committee. For more details on the amendments and the final adopted budget please see the ‘General Fund Overview’ section on page 88.

25 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

Guiding Documents The City of Lee’s Summit actively participates in strategic planning to improve organizational capabilities by embracing a cycle of continuous improvement. These plans help organize resources to ensure optimal results are achieved. The City has three guiding documents which inform the organization’s decision making process. Priorities are formed when these documents share similar objectives. As shown in the diagram below, the City will focus on the priorities that overlap within the guiding documents.

Council Goals: The Council held a retreat to establish goals and objectives for the next year. The City Council will be updated on the progress made semi-annually and reconvene each year to reaffirm future priorities. LS360: The City of Lee’s Summit and the National League of Cities organized a community wide strategic planning process for residents to engage in visioning and planning for the Lee’s Summit community. Based on their input, goal and objectives were developed that were merged with the departmental goals and objectives. Business Plan: The City of Lee’s Summit is currently developing a 5 year internal business plan utilizing the national Baldridge program. A systematic and repeatable process was used to set the strategic direction for internal operations as well as the tactical plans to be implemented each year to ensure consistent forward progress in organizational performance.

26 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

Citizen Based Strategic Planning in Lee’s Summit, Missouri Over the last forty years, the City of Lee’s Summit has grown into one of the largest cities in the Kansas City Metropolitan area. This growth has been effectively managed not only through the leadership provided by the Mayor and City Council, but also through the vision and goals established by the citizenbased Lee’s Summit: 21st Century strategic planning process in 1993 and later updated in 1998. Many of the things that have come to mark the high quality of life in our community and the excellence of service from the City were a result of these processes. These include new City facilities such as the police headquarters and City Hall, and new boards and commissions that help guide such community initiatives as the arts and human relations. As the goals from the 1993 and 1998 21st Century Strategic Plans have now been accomplished, the Mayor and the City Council requested that a new long-term Strategic Plan be established, which would serve as a guide for the future long-term growth and sustainability of Lee’s Summit. With facilitation from the National Civic League (NCL), a highly diverse group of individuals from around the Lee’s Summit community gathered together to formulate this plan over an 11 month period. These individuals worked together to create a plan that would serve the common good of every Lee’s Summit citizen. As the first step in this process, an Initiating Committee was assigned four primary tasks: selecting the project name, identifying potential stakeholders who would have the task of creating the strategic plan, finding a location for the meetings, and establishing organizational committees. On September 16, 2008, the Stakeholders Committee kicked off one of the largest strategic planning processes that the National Civic League has ever undertaken. This group of citizens worked together every three weeks for eight months to produce a strategic plan that would outline the needs and expectations for the Lee’s Summit community over the next 10 - 15 years. Through hours of open debate, discussion, and collaboration among stakeholders, six Key Performance Areas were identified as the main areas of emphasis for the strategic plan. The plan is divided into six key performance areas (KPA): Economic Development, Education, Health and Human Services, Local Government, Quality of Life, and Transportation. Due to the dedication and cooperation of the 202 stakeholders of Lee’s Summit 360° and their ability to maintain free and open dialog, a comprehensive long-term strategic plan was created for the common good of the community. On March 31, 2009, the entire Lee’s Summit 360° committee was able to reach a consensus on the final plan. Throughout the following summer, the City Council and the CoChairs of each KPA worked together over several City Council meetings to create the final report that serves as the long term strategic plan of the City. On August 6, 2009, the City Council unanimously

27 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

approved a resolution adopting the Lee’s Summit 360°: Charting Tomorrow as the long term strategic plan for the City of Lee’s Summit. The final phase of the strategic planning process is underway and involves the actual implementation of the plan. The Mayor-appointed Implementation Committee is charged with reviewing the plan, further clarifying the goals and strategies and initiating the action steps. Following is a high level summary of the vision and goals established for the community through the Lee’s Summit 360 process. The full document, including strategies, action steps and success measures, may be found on the City’s website at www.cityofls.net under ‘Publications and Reports’. An online dashboard has been created to track the progress is achieving these goals.

Lee’s Summit 360 Community Vision Statement Lee’s Summit is a sustainable and vibrant city with a dynamic spirit of cooperation among its diverse citizens, businesses, organizations, educational systems and governments. Through comprehensive community planning and regional collaboration, Lee’s Summit enjoys economic independence and a high quality of life as a recognized destination city.

Key Performance Areas Education Mini Vision Statement: The community of Lee's Summit and its educational partners through regional collaboration and dynamic planning meet the life-long learning needs of all diverse citizens. Goal: Create a forum for collaboration between the City of Lee's Summit and the diverse educational partners in the community to ensure a continued, coordinated and focused emphasis regarding: Life-long learning and employment needs of the community Ongoing pursuit of funding to address such needs Attention to diversity, promotion of benefits, and understanding of education-related issues Comprehensive and coordinated dissemination of education-related information throughout the community.

Economic Development Mini-Vision Statement: Lee's Summit is a progressive destination city with a fiscally balanced tax base and a strong sense of community, which attracts and retains investment by aggressively pursuing development and redevelopment strategies through public and private partnerships Goal 1: The City of Lee’s Summit is development and redevelopment friendly. Goal 2: In order to improve the current strategy of increasing the office and industrial assessed valuations in Lee’s Summit, the City should evaluate the Lee’s Summit Economic Development Council’s (LSEDC) relationship, structure, and reporting communications with the City.

28 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

Goal 3: Establish a ratio of 35% commercial and 65% residential development and redevelopment mix. Goal 4: Aggressively pursue redevelopment projects using the appropriate tools to achieve the highest and best use of underutilized properties. Goal 5: Lee’s Summit is perceived as a “progressive destination city”.

Health and Human Services Mini Vision Statement: Lee’s Summit is rated one of America’s healthiest cities by utilizing an integrated health and human services network providing services easily accessible to all citizens whether or not they are insured. In collaboration with its charitable organizations, the City’s health system developed the resources to assist in providing access to preventative measures, therapy, education, treatment and support to the entire community including the disadvantaged and most vulnerable. Goal 1: Identify, educate & coordinate efforts related to human service needs for the citizens of Lee's Summit. Goal 2: Involving a collaborative group of community leaders, develop a comprehensive plan to address the healthcare needs of the under-insured and uninsured of the Lee's Summit community. Goal 3: Coordinate plans and education opportunities related to the emergency services response and the health and human services aspects of disaster preparedness for the Lee's Summit community.

Local Government Mini-Vision Statement: The government of Lee's Summit reflects our strong identity while promoting a regional and collaborative approach for providing quality services with accountability to its citizens. Through transparency, communication and outreach, Lee's Summit fosters the empowerment of its citizens and a broad base of leaders. The government is guided by our sense of history, spirit of innovation and sustainability. Goal 1: Leadership development and community involvement Strategy 1: Continue to develop and expand a communication outreach program for the City of Lee’s Summit. Strategy 2: Enhance leadership training Strategy 3: Create mechanisms to maximize representative government involvement. Goal 2: Continue to support a fully-resourced, professionally trained government workforce. Strategy 1: Build the leading public safety organizations in the metropolitan area. Strategy 2: Provide modern facilities and technological tools for Staff as needed, in order to continue to maintain a high level of quality services to the Lee’s Summit community. Strategy 3: Ensure City employees are compensated competitively. Goal 3: Achieve environmentally friendly and financially sustainable infrastructure systems. Strategy 1: Create a sustainable infrastructure task force and develop a long-term infrastructure sustainability plan.

29 | P a g e


2: Administrative Summary

City of Lee’s Summit Annual Budget FY14

Strategy 2: Promote and implement select ‘green’ initiatives. Goal 4: Promote fiscally sustainable and environmentally sensitive development. Strategy 1: Continue to maintain prudent cost management and conservative fiscal strategies. Strategy 2: Promote balanced revenue mix. Strategy 3: Incentivize sustainable development. Strategy 4: Protect natural resources of the community.

Quality of Life Mini Vision Statement: Acclaimed as the ideal place to live, learn, work and play, Lee’s Summit embodies healthy living, excellence in the arts, recreation, learning and multi-generational leisure opportunities combined with a respect for the environment and its diverse population. Goal 1: Establish strategies & action steps that support arts and culture in Lee’s Summit. Goal 2: Establish strategies & action steps that support a positive brand & consistent community image. Goal 3:Establish strategies & action steps that support a diverse community. Goal 4:Establish strategies & action steps that support healthy lifestyles.

Transportation Mini-Vision Statement: Transportation in Lee’s Summit is a planned, regionally integrated, multi-modal, accessible, and well-maintained system that facilitates movement about the city and encourages growth and economic development. This system includes vehicular, bicycle, pedestrian, aeronautical, rail and mass transit components that provide safe, efficient, and sustainable transportation of people, goods, and services to and from places where people live, work, worship, shop, play, learn, and seek medical care. Goal 1: Airport. Determine if expansion of the Lee’s Summit Municipal Airport (Airport) will provide desirable economic development and growth for Lee’s Summit with net positive benefits to the community overall. Goal 2: Complete Streets. A “Complete Streets” system would allow safe access along and across Lee’s Summit streets for all citizens, including motorists, bicyclists, pedestrians, and transit riders. Goal 3: Mass Transit. Provide the citizens of Lee’s Summit a safe, cost-effective, accessible, environmentally responsible regional mass transit system that connects people to work, educational institutions, medical institutions, and entertainment destinations within Lee’s Summit and with connections to other transit routes within the Kansas City metropolitan areas. This goal is to be accomplished as it is deemed feasible and fiscally sustainable for the City.

30 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

City Council Goals

Introduction The Lee’s Summit City Council Retreat, December 14 & 16, 2012 focused on providing the Council an opportunity to identify strategic initiatives to guide the staff in the future, and to formulate a mission and vision for the City. This retreat was facilitated by Ron Holifield, CEO of Strategic Government Resources and was attended by the Mayor, all Councilmembers, City Manager, and members of the City’s management team. The Retreat Agenda was divided into six major sections including: 1. Team Dimensions Assessment to Provide Insight into Shared Decision Making Styles and Strategies for Improved Decision Making 2. Review and Discussion of Effective Governance Practices 3. Review and Discussion Regarding the Strategic Visioning Process 4. Review of Current Strategic Goals, Values, Mission and Vision 5. Deliberation and Establishment of Strategic Goals for the Future This report has been designed to generally follow in chronological order the flow of the actual retreat. The language refers to the Mayor and Council collectively as the Council.

Team Dimensions Assessment Prior to the retreat, the Mayor and City Council members took an assessment called “Team Dimensions” which is designed to assess decision making styles and assist the Council in understanding how they make decisions collectively and individually. The Team Dimensions Profile© identifies various roles that may come naturally to different people in the group. Creators – generate new ideas and fresh concepts. They prefer to live world of possibilities and look for activities that are unstructured, abstract, and imaginative.

31 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

Advancers – communicate new ideas and carry them forward. They focus on the interactive world of relationships and often manage the human part of any solution. Refiners – analyze ideas for flaws or revise projects systematically. They focus on the objective, analytical world of facts or theories. Executors - deliver concrete results and seek successful implementations. They tend to be realists who pay attention to details and the bottom line. Flexers – have an equal preference for most or all of the roles and can often adapt their styles to fit the team’s needs. In short, the assessment suggested that a majority of the Council is weighted towards “refiners” and “creators”. Overall, many councilmembers seem to have a preference for the Refiner role. Oftentimes, groups with this pattern of results place a high value on logic and accuracy. They tend to be very reflective and perhaps even a little withdrawn or skeptical at times. This may create an environment where competency is very highly valued and people take their time to correctly resolve matters.

The Pillars of Strategic Visioning

Strategic Visioning builds upon 5 Pillars. These pillars support and give structure to both the process and the product. These include: Strategic Thinking The City Council is responsible for thinking strategically about the future and developing an inspiring vision that creates excitement and establishes the direction for the city as it moves toward the future. This is best accomplished in a retreat setting with a series of well-designed questions with professional facilitation which helps the Council engage in deep and meaningful discussions regarding the future. Business Analytics Good decisions demand good data. The more complex the issues are, and the longer term the horizon for the vision, the more critical it is to have good data to work with. Good data is not enough: the organization needs to be capable of interpreting and analyzing the data, as well as communicating it in easy to understand and compelling ways. This input includes an accurate analysis of current and anticipated trends, crucial issues, a fiscal forecast, the current comprehensive plan, and input from both staff and citizens. Planning and Execution by Staff

32 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

Staff is responsible for developing and executing on action plans to achieve the Council’s vision. These plans are developed in a feedback loop with the Council, so that there is clear understanding of the Council’s vision, the mutually agreed upon goals, and the action plans to accomplish those goals.

Continual Alignment To translate it from dream into reality, the vision must be in alignment with the city’s purpose, its core values, and the master plan, as well as the real and perceived needs of the citizens. In turn, the goals, the objectives, and the tasks must be in alignment with the vision. Creating alignment with the annual budget and the Strategic Vision is critical to empower the city to accomplish the vision. Once alignment is achieved, leaders must be diligent to maintain alignment, including continuing adjustment of the vision based on new information, changing situations and new insights. Communication and Feedback A constant flow of communication and feedback must be maintained between Council and staff in order to maintain alignment, evaluate performance, and make necessary adjustments due to changing factors. This enables the leadership to keep the vision relevant, empowering and achievable.

Review of Current Mission, Vision, Values and Comprehensive Plan Five Overriding Principles Existing Mission, Vision, Values The Lee’s Summit City Council had not previously formulated mission, vision, or values statements. In the absence of this guidance, city staff operated by focusing on the mission and vision statements created during the LS360° Charting Tomorrow community strategic planning process. This vision statement was created by stakeholders, community leaders, residents, city council members, and city staff who participated during the 2009 planning process. The City Council reviewed and discussed the LS360° Vision Statement and generally agreed that it was a good statement. However, the consensus was that the term ‘destination city’ be replaced with ‘distinctive city’. Additionally, the City Council expressed a desire to create a vision statement that collectively expressed the vision for the City Council. LS360° Vision Statement Lee’s Summit is a sustainable and vibrant city with a dynamic spirit of cooperation among its diverse citizens, businesses, organizations, educational systems and governments. Through comprehensive community planning and regional collaboration, Lee’s Summit enjoys economic independence and a high quality of life as a recognized distinctive city. 33 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

City Council Vision Statement As the elected body of the City of Lee’s Summit, Missouri, we are collectively in pursuit of; A culturally rich community with diverse economic sectors to create a prosperous and dynamic community in perpetuity.

Strategic Goals for the Future Goals express and define future desired outcomes and are intended to guide decision making and behaviors. Goals are developed during the strategic visioning process which enables the City Council to strategically identify future direction. This continuous improvement process allows for goals to be modified, refined, and aligned to the City Council’s vision. Recommended Goals These recommendations are based upon the Effective Governance Practices Presentation, the Council’s Team Dimensions Assessment©, interviews, and council retreat discussions. 1. Determine the preference to operate in the governance model versus the political model. Council governance practices should be formally adopted that reinforce and support the type of governance culture the Council desires to establish. 2. Establish an environment that consists of healthy positive relationships to establish decorum and strengthen relationships between Councilmembers, the City Manager, and city staff through improved governance dynamics, while preserving a commitment to vigorous debate. 3. Establish clear policy expectations through an ongoing and routine strategic visioning process allowing for continuous improvement and ongoing refinement of council priorities to ensure vision alignment. 4. Develop standards for analysis and documentation that accompanies council meetings to ensure that staff presentations are aligned with Council’s vision. 5. Emphasize citizen engagement and participation from the community. 6. Educate and include new council members in past and future visioning processes. Goals developed by City Council

I.

Improve the development and maintenance of infrastructure Action Steps: • •

Explore options for how projects can be accelerated. Provide a periodic update of infrastructure improvements o Update the Thoroughfare Master Plan o Establish a communication plan for infrastructure projects

34 | P a g e


2: Administrative Summary • • II.

City of Lee’s Summit Annual Budget FY14

Review, adopt, and implement policies that ensure the development of quality infrastructure. Expand information technology based infrastructure

Embrace a culture that promotes aggressive and bold decision making Action Steps: • •

III.

Develop an economic development strategic plan Commit to an effective governance model and continuous improvement process o Plan semiannual Council retreats and strategic visioning retreats o Communicate Council priorities and vision to stakeholders o Contextualize long term decisions that may not garner short-term political support.

Attract and retain “knowledge-based employers” Action Steps: • Establish policies, guidelines, and continually seek best practices for economic development activities. • Establish performance measures for economic development o Measure performance of these employers using the State’s ‘quality job’ definition. Measure the ability to attract these employers. • Partner with higher education institutions create to help attract “knowledge-based employers.”

IV.

Preserve and enhance residential developments Action Steps: • • •

Measure and monitor the real estate tax value of neighborhoods Provide solutions and choices to maintain and improve assessed valuation o Research and implement code enforcement programs that protect housing values Enhance role of City as a community connector

35 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary

City of Lee’s Summit Performance Excellence Balanced Dashboard The City’s Business Planning review process is conducted on an ongoing basis, both with the employee teams and weekly during Management Team meetings. It follows a systematic process where organizational measures in the balanced scorecard are reviewed as well as the measures reflecting performance against action plans.

Goal

Objective

Customer Focus

Customer Focus

Delivery of Services

Strategy

Strategy Measure

Measure Definition

Ensure customer Understand the engagement elements of an engaged customer and develop an approach to ensure customer engagement. Maximize Identify customer customer satisfaction demographics and determine approach to maintaining relationships

Customer Engagement Plan Developed

1) Action Plan Implemented 2) Increase in Customer Engagement Score

Customer relationship approach developed

Action Plan Completed

Utilize technology to facilitate the optimum delivery of services

Approach to ensure information accuracy, accessibility, reliability, and security developed and implemented.

1) Action Plan Implemented 2) Increase in customer perception of data accuracy

Develop and implement a systematic approach to insure information (data) accuracy accessibility, reliability, and security.

36 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary Delivery of Services

Ensure a systems- based process to organizational management and planning

Delivery of Services

Ensure City infrastructure supports and facilitates the delivery of service to customers Objective

Goal

Create policy alignment; political/ organizational/ community. (Lack of communication and collaboration) Develop and implement a systematic life cycle approach to sustainable infrastructure

Policy alignment Action Plan achieved. Completed

Life cycle approach implemented

Action Plan Completed.

Strategy

Strategy Measure

Measure Definition

Delivery of Services

Ensure delivery of the right services at the right time to customers

Develop and implement a systematic approach to ensure customer requirements are built into the development of all products, programs, and services

Approach to ensure customer requirements are built into the development of all services implemented

1) Action Plan Completed. 2) Increase in customer satisfaction with services.

Communication

Maximize employee effectiveness through internal communication

Review of existing internal data and distribution methods

Action Plan Completed

Communication

Maximize employee effectiveness through internal communication

Develop and implement standardized approach to internal communications

Review of existing internal data and distribution methods completed. Internal standardized approach developed and implemented

Communication

Ensure effective stakeholder and citizen satisfaction through external communication

Develop and implement standardized approach to external communications

External standardized approach developed and implemented

1) Action Plan Implemented 2) Increase in satisfaction with external communication

1) Action Plan Implemented 2) Increase in satisfaction with internal communication

37 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary Communication

Ensure effective stakeholder and citizen satisfaction through external communication

Develop and implement information guide for new customers

Information guide developed and implemented

Workforce

Employee Satisfaction and Engagement

Develop and implement systematic process to collect employee ideas and opinions.

Feedback loop process developed and implemented

1) Action Plan Implemented 2) Increase in satisfaction with communication with new customers 1) Action Plan Implemented 2) % employees engaged

Goal

Objective

Strategy

Strategy Measure

Measure Definition

Workforce

Proactively manage workforce capacity

Communication process developed and implemented

1) Plan Completed 2)Improvement in % Commitments Kept

Pilot Employee development plan developed and implemented

1) Plan Completed 2)Employee Satisfaction

Technology project plan developed

Plan Completed

Workforce

Workforce

Develop and implement systematic process to improve communication between Management, Council & Community Group (Implement pilot group) Proactively Develop and manage implement plan workforce to foster capability development of employees – (PILOT PLAN in IT Dept.) Foster employee Develop technological systematic self-sufficiency technology project plan (year two)

38 | P a g e


City of Lee’s Summit Annual Budget FY14

2: Administrative Summary Fiscal Accountability

Fiscal Accountability

Fiscal Accountability

Ensure financial resources are available to meet strategic and daily operational needs effectively and efficiently Ensure financial resources are available to meet strategic and daily operational needs effectively and efficiently Ensure financial resources are available to meet strategic and daily operational needs effectively and efficiently

Develop and implement strategic economic development plan

Economic Plan developed

1) Action Plan developed 2) Effectiveness of economic plan

Maintain and develop strong fiscal policies to ensure longterm financial health of the City

Fiscal policies developed and implemented

Action Plan Completed

Promote an understanding of the financial ability of the City to meet stakeholder expectations

Increase in stakeholder satisfaction with financial tools

1) Action Plan Completed. 2) Stakeholder satisfaction with financial tools

39 | P a g e


Section 3: Budget Overview


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

Fund Structure The City budget is divided into 70 different funds which fall into one of two major categories: Governmental Fund Types Governmental Funds are those which rely on taxes for support. The taxes are deposited into the revenue accounts of the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds. Proprietary Fund Types Proprietary Funds rely on user charges for support and include the Enterprise Funds, which provide services to and collect fees from the general public. The Internal Service Funds provide service to and collect fees from the General Operating Fund, Special Revenue Funds, and Enterprise Funds that are directly benefited. Governmental Fund Types General

General

Special Revenue

Parks & Recreation Fund Gamber Center Legacy Park Community Ctr Summit Waves Cemetery Trust Fund Business & Industry Fund Entitlement Fund VAWA Grant Fund Public Safety Equipment Replacement Fund

Debt Service

GO Debt Park COP Debt

Proprietary Fund Types Capital Project

SummitWoods East TIF Hartley's Block TIF I470 Business Center TIF Chapel Ridge TIF Longview TIF Longview TDD Ritter Plaza TIF Todd George/50 Hwy TIF Water Tap Fund Sewer Tap Fund Water Construction Sewer Construction WU Equipment Replacement Fund ERP System Airport Construction Fund Capital Improvement Sales Tax R&B Improvement Fund Park Development Fund Neighborhood Park Renovations Water/Sewer Bonds Public Safety 2010 Cultural Arts 2013 Bonds Road Improvments 2013 Bonds

Enterprise

Water/Sewer Fund Airport Fund Solid Waste Management Fund Harris Park Recreation Center

Internal Service

Central Building Services Fleet Operations ITS Services ST Disability Fund Unemployment Trust Fund Insurance Trust Fund Work Comp Self Insurance

41 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

CHANGES IN FUND BALANCES Lee's Summit, Missouri Combining Funds Statement By Fund Types For Fiscal Year 2014

General Est. Beginning Balance $

12,398,138

Revenues Transfers In

56,934,838 1,996,350

Special Revenue

Debt Service

Capital Projects

Enterprise

Internal Service

Total

$ 7,094,621

$ 8,503,442

$ 107,764,736

$ 11,533,694

$ 16,092,832

$ 163,387,462

7,232,779 412,148

10,850,808 0

32,210,254 14,010,707

39,659,116 935,860

7,643,211 236,846

154,531,006 17,591,911

Total Resources

71,329,326

14,739,548

19,354,250

153,985,697

52,128,670

23,972,889

335,510,380

Less: Expenditures Transfers out

57,832,692 560,532

7,018,133 494,925

7,865,571 1,375,000

65,486,837 5,523,433

33,188,125 9,886,838

11,019,293 74,800

182,410,651 17,915,528

Ending Balance $ Fund Balance Change: Amount Percent

12,936,102

$ 7,226,490

$ 10,113,679

$537,964 4.3%

$131,869 1.9%

$1,610,237 18.9%

$ 82,975,427

$

($24,789,309) -23.0%

9,053,707

($2,479,987) -21.5%

$ 12,878,796

$ 135,184,201

($3,214,036) -20.0%

($28,203,262) -17.3%

*Transfers In: Includes onetime revenues related to the scheduled repayment of funding loaned during construction and approximately $180,000 in back taxes that were paid to another jurisdiction in error. Transfers Out: Includes payments for expansion items, appropriations for the Arts Council, Beautification th Commission, and 4 of July event expenses.

Combined Revenues by Type General

Special Revenue

Debt Service

Capital Projects 3,946,252 13,710,257 -

Internal Service

Enterprise

Property taxes $ Sales tax Franchise tax Motor vehicle taxes Bed tax Other taxes Fines and forfeitures Licenses and permits Intergovernmental Charges for services Material and fuel sales Investment earnings Other Sale of property Bond Proceeds Interdepartment revenues Transfers in

17,453,036 13,271,010 14,076,315 2,960,656 342,236 1,519,417 1,279,490 829,576 3,521,327 90,684 1,591,091 1,996,350

$ 2,902,300 320,941 22,250 498,317 3,073,784 203,515 16,717 119,455 75,500 412,148

$ 7,734,741 3,116,067 -

$

$

12,673 4,951,870 2,091,202 7,498,000 14,010,707

291,820 4,000,000 33,930,673 1,073,483 38,750 324,390 935,860

$

58,931,188

$ 7,644,927

$ 10,850,808

$ 46,220,961

$ 40,594,976

$

Total

74,370 25,000 418,343 7,125,498 236,846

$ 7,880,057

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

32,036,329 30,097,334 14,076,315 2,960,656 320,941 342,236 1,846,160 1,279,490 10,279,763 42,616,986 1,276,998 220,521 2,059,936 493,843 7,498,000 7,125,498 17,591,911

$ 172,122,917

42 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

Review of Funds The following table lists the estimated beginning fund balance or retained earnings; projected revenues; and expenditures (including interfund transfers) and the projected ending fund balance for all City funds. Unaudited Balance 6/30/2013 GOVERNMENTAL FUNDS General Fund Total Governmental Funds

12,398,138 12,398,138

Add Revenues

Less Expenditures

58,931,188 58,931,188

58,393,223 58,393,223

Projected Balance 6/30/2014 12,936,103 12,936,103

Net Change Amount Percent 537,965 537,965

4.3% 4.3%

49,628 181,972 (213,686) 35,179 (684) (9,184) 2,362 (22,000) (1,001) 32,882 17,000 72,468

0.0% 20.5% 45.6% -17.3% 397.8% -1.3% -36.1% 0.2% -762.8% 807.3% -147.6%

SPECIAL REVENUE FUNDS Energy Efficiency & Conservation Block Grant Gamber Center Community Center Parks & Recreation Fund Aquatics Business and Industry CDBG Entitlement Cemetery Trust Fund Summit Woods TDD Longview TDD Violence Against Women Grant Fund Public Safety Equipment Replacement Postclosure Trust Fund Total Special Revenue Funds

13,374 242,550 398,946 1,235,137 8,843 53,314 25,434 1,167,184 2,884 (124) (22,280) 3,969,358 7,094,621

598,601 2,021,105 3,180,876 671,914 373,428 288,907 284,436 208,660 17,000 7,644,927

548,973 1,839,133 3,394,562 636,735 374,112 298,091 282,074 22,000 1,001 175,778 7,572,459

DEBT SERVICE FUNDS G.O. Debt Service Fund Park Certificate of Participation Debt Fund Total Debt Service Fund

7,490,255 1,013,187 8,503,442

7,734,741 3,116,067 10,850,808

7,865,571 1,375,000 9,240,571

7,359,425 2,754,254 10,113,679

(130,830) 1,741,067 1,610,237

-1.7% 171.8% 18.9%

2,237,830 47,113 327,010 11,281,652 1,463,159 4,000,000 652,023 1,465,502 2,000,000 7,100,000 681,884 6,230,769 52,000 984,019 200,000 2,898,000 4,600,000 46,220,961

1,700,894 260,000 330,996 20,701,000 1,343,979 286,953 4,579,000 1,059,433 50,000 10,771,000 9,848,000 751,000 6,802,000 82,514 1,471,000 52,500 1,043,000 5,100,000 1,784,000

6,199,620 1,846 166,947 15,188,005 3,511,952 163,231 (2,257,802) (298,033) 690,344 5,538,641 13,409,813 1,970,257 3,295,978 4,831,124 5,997,162 8,739 (777) (255,311) 1,002,406 8,461,026 624,764 67,185 2,907,689 (1,662,733) (58,547) (5,100,000) 74,829 (313,878) 5,180,263 3,804,906 2,455,534 2,914,813 (49,566) 2,123,000 2,405,000 82,998,428

536,936 (212,887) (3,986) (9,419,348) 119,180 (286,953) (579,000) (407,410) 1,415,502 (8,771,000) (2,748,000) (69,116) (571,231) (30,514) (486,981) (52,500) (843,000) (5,100,000) (1,784,000) 2,123,000

9.5% -99.1% -2.3% -38.3% 0.0% 0.0% -5.0% 2589.8% -45.6% -6.9% 11.8% -81.7% -45.5% -1.4% -8.7% -77.7% -0.0% -32.7% 0.0% 0.0% -43.9% 0.0% #DIV/0! #DIV/0! 102.8% #DIV/0! #DIV/0! #DIV/0! 0.0% #DIV/0! 0.0% 0.0% -25.6% 0.0% 0.0% 0.0% 0.0%

(24,766,308)

-23.0%

CAPITAL PROJECT FUNDS Summitwoods East TIF Hartley Block Tax Increment Financing (TIF) I-470 Business Center TIF Capital Improvements Sales Tax Landfill Improvement Summit Woods TIF Chapel Ridge TIF Longview TIF Airport Improvement Water Tap Fund Sewer Tap Fund Water Construction Sewer Construction Water/Sewer Equipment Replacement Road & Bridge Improvement Ritter Plaza TIF NE TIF City Park Fund Todd George/50 Hwy TIF Stormwater Improvements Arterial Lights Enterprise Resource Planning Road & Bridge Excise/Sales Tax Senior Center Fund Greenway Fund Neighborhood Park Development City Walk TIF Fire Station #2 Sidewalk Program Salt Dome #2 Water/Sewer Revenue Bonds Downtown Improvements Public Safety Issues Public Safety 2010 Infrastructure Improvement 2010 Road Improvement 2010 Tudor Road Improvement 2010 3rd Street Road Improvements Cultrual Arts 2013 Road Improvements 2013 Total Capital Project Funds

5,662,684 214,733 170,933 24,607,353 3,511,952 163,231 (2,376,982) (11,080) 1,269,344 5,946,051 11,994,311 10,741,257 6,043,978 4,900,240 6,568,393 39,253 (777) (255,311) 1,489,387 8,461,026 624,764 119,685 2,907,689 (819,733) (58,547) 74,829 (313,878) 6,964,263 3,804,906 2,455,534 2,914,813 (49,566) 107,764,736

775,000 2,195,000 70,987,269

13,374 292,178 580,918 1,021,451 44,022 52,630 16,250 1,169,546 (19,116) (1,125) 10,602 17,000 3,969,358 7,167,089

0.0% 1.0%

43 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

Continued: Review of Funds The following table lists the estimated beginning fund balance or retained earnings; projected revenues; and expenditures (including interfund transfers) and the projected ending fund balance for all City funds. Unaudited Balance 6/30/2013

Add Revenues

Less Expenditures

ENTERPRISE FUNDS Harris Park Community Center Airport Operating Water Utility Operating Solid Waste Management Revenue Bonds Total Enterprise Funds

158,854 271,895 6,819,227 2,074,007 2,209,711 11,533,694

1,210,643 5,779,435 30,658,133 2,946,765 40,594,976

1,178,688 6,185,154 32,734,791 2,984,830 43,083,463

INTERNAL SERVICE FUNDS Short-Term Disability Trust Unemployment Trust Self-Insurance Reserve Workers Compensation Self-Insurance Central Building Services Fleet Operations Information Technology Systems Total Internal Service Funds

86,561 139,488 115,712 1,463,535 971,414 11,175,230 2,140,891 16,092,832

46,172 23,248 150,350 499,951 1,346,700 2,894,030 2,919,606 7,880,057

35,905 28,739 150,000 833,823 1,299,232 5,191,510 3,554,883 11,094,092

163,387,462

172,122,917

200,371,077

Grand Total

All Funds Total Revenue FY13 Budget Property taxes 36,350,321 Sales tax 34,273,212 Franchise tax 14,396,746 Motor vehicle taxes 2,975,612 License tax 298,459 Bed tax 314,860 Other taxes 382,764 Fines and forfeitures 1,918,593 Licenses and permits 1,142,674 Intergovernmental 8,337,608 Charges for services 40,501,566 Material and fuel sales 1,272,229 Investment earnings 800,945 Other 2,123,299 Sale of property 874,466 Bond Proceeds 340,000 Interdepartment revenues 7,390,506 Transfers in 12,317,028 166,010,888 Total

FY14 Proposed 32,033,829 30,097,334 14,076,315 2,960,656 0 320,941 344,736 1,846,160 1,279,490 10,279,763 42,616,986 1,276,998 220,521 2,059,936 493,843 7,498,000 7,125,498 17,591,911 172,122,917

Projected Balance 6/30/2014

190,809 (133,824) 4,742,569 2,035,942 2,209,711 9,045,207

Net Change Amount Percent

31,955 (405,719) (2,076,658) (38,065) (2,488,487)

20.1% -149.2% -30.5% -1.8% 0.0% -21.6%

96,828 133,997 116,062 1,129,663 1,018,882 8,877,750 1,505,614 12,878,797

10,267 (5,491) 350 (333,872) 47,468 (2,297,480) (635,277) (3,214,035)

11.9% -3.9% 0.3% -22.8% 4.9% -20.6% -29.7% -20.0%

135,139,302

(28,248,160)

-17.3%

All Funds Total Expenditures FY13 Budget Personal services 54,477,194 Supplies for resale 13,372,405 Supplies, services and charges 24,824,908 Repairs and maintenance 3,361,141 Utilities 3,265,819 Fuel and lubricants 1,233,831 Depreciation 7,210,228 Miscellaneous 286,997 Interest 10,397,953 Capital outlay 5,264,692 Construction 28,722,245 Interdepartment charges 6,998,305 Transfers out 18,193,849 177,609,567 Total

44 | P a g e

FY14 Proposed 53,860,203 14,145,407 19,695,329 2,964,588 3,178,003 1,138,595 7,006,483 206,119 9,028,034 2,939,299 61,546,443 6,747,047 17,915,528 200,371,078


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

FIVE YEAR GENERAL FUND MODEL The City of Lee’s Summit uses a five year financial model for long range financial planning. The use of the model helps predict financial outcomes for a variety of different budgeting scenarios. The five year model includes both revenues and expenditures by category for the general fund departments. During GENERAL FUND BALANCE 2009 Est. Beginning Balance $ 21,201,763

Actual 2010

2011

$ 23,217,068

$

27,326,464

2012

Estimated 2013

Budget 2014

2015

2016

Projected 2017

2018

$ 12,171,750

$ 12,907,164

$ 12,398,138

$ 13,881,603

$ 13,554,662

$ 13,977,608

$ 15,243,364

Revenues

52,420,760

54,167,271

58,135,635

54,669,252

56,452,632

57,934,838

58,059,650

59,039,420

60,037,380

60,973,644

less: Expenditures Net Transfers In/(Out)

52,497,790 2,092,335

53,059,419 3,001,544

71,920,115 -1,370,234

55,568,443 1,634,605

58,239,442 1,277,784

57,887,191 1,435,818

58,883,767 497,176

59,123,653 507,180

59,288,983 517,358

60,087,443 527,716

$ 13,977,608

$ 15,243,364

$ 16,657,280

$1,265,756 9.1%

$1,413,917 9.3%

Ending Balance

$ 23,217,068

$ 27,326,464

Change in Fund Balance: Amount $2,015,305 Percent 9.5%

$4,109,396 17.7%

Fund Balance as % of Expenditures

44.2%

$

12,171,750

($15,154,714) -55.5%

51.5%

16.9%

$ 12,907,164

$ 12,398,138

$ 13,881,603

$ 13,554,662

$735,414 6.0%

($509,026) $ 1,483,465 -3.9% 12.0%

($326,941) -2.4%

$422,946 3.1%

23.2%

21.3%

23.0%

23.6%

24.0%

25.7%

27.7%

the budget process this model is presented to the City Council to elicit discussion and budgetary direction. The model is very fluid and changes regularly as new information becomes available. The table above is a condensed version of the model presented to the Budget Committee near the end of the FY14 budget process. It illustrates the projected general fund balance through FY18 based on projected revenues, anticipated FY14 budget levels, and a number of assumptions of future growth rates.

General Fund Balance $35,000,000 25% of GF Expenditures

$30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2009

2010

2011

2012

2013

2014

Fiscal Year

2015

2016

2017

2018

Projected

45 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

For FY14 and later years, the estimated expenditures in the model include a 2.7% assumed vacancy rate savings which is included in the actual general fund budget amount. The revised model includes the final adopted FY14 budget that was amended by the Budget Committee following the presentation of the City Manager’s Budget message. The updated version does not factor planned reductions and assumes no significant changes to the City’s revenues or services provided.

Full Time Equivalents (FTE) FTE’s are positions or employees that are expressed as a ratio of hours worked. One FTE is assumed to work 2,080 hours per year. For Firefighters, 1 FTE is assumed to work 2,912 hours per year. The table below lists all approved FTEs for FY14.

Fund General Fund Parks & Recreation Water Utilities Airport Solid Waste CBS Fleet ITS Total

Full Time Equivalents (FTE) FY12 FY13 FY14 545.06 545.26 531.24 116.98 116.98 116.18 59.98 59.98 59.98 7.6 7.04 6.3 14.8 15.15 14.8 8.5 8.75 8.75 9 9 9 24.23 26.23 26.23 786.15 788.39 772.48

Change from FY13 $ % -14.02 -2.6% -0.8 -0.7% 0 0.0% -0.74 -10.5% -0.35 -2.3% 0 0.0% 0 0.0% 0 0.0% -15.91 -2.0%

A summary of variances can be found in the general fund overview section on page 86 and the individual department summaries. 900 800

786

788

772

ITS

700

Fleet

600

CBS

500

Solid Waste

400 300

Airport 545.06

545.26

531.24

Water Utilities

200

Parks & Recreation

100

General Fund

0 FY12

FY13

FY14

46 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

The FY14 Adopted Budget, as outlined in the ordinance, followed recommendations from the Budget Committee. For more information about these recommendations please see the General Fund Overview Section.

47 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

48 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

49 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

Organizational Policies and Procedures Summary of Significant Accounting Policies The City of Lee’s Summit, Missouri (the City) was incorporated in 1868 and covers an area of approximately 64 square miles in Jackson and Cass Counties, Missouri. Lee’s Summit is a charter city operating under an elected Mayor-City Council form of government. The City Administrator is the chief administrative officer of the City. The City provides services to more than 70,000 residents in many areas including law enforcement, fire protection, water and sewer services, community enrichment and development, and various social services. Educational services are provided by separate governmental entities. The accounting and reporting policies of the City conform to generally accepted accounting principles (GAAP) applicable to local governments. The following represent the more significant accounting and reporting policies and practices of the City. The Financial Reporting Entity The City is governed by an elected eight-member council and a mayor. As required by GAAP, these financial statements present the City of Lee’s Summit (the primary government). The following component unit is included in the City’s reporting entity because of the significance of its operational and financial relationship with the City. Blended Component Unit The following legally separate entity is a component unit which is, in substance, a part of the City’s general operations. This component unit provides services almost entirely to the primary government and provides services which almost exclusively benefit the primary government. Data from this unit is combined with data of the primary government for financial reporting purposes. The Lee’s Summit, Missouri Municipal Building Authority (the Authority) is a not-for-profit corporation incorporated under the laws of the state of Missouri on August 13, 1994. The Authority is governed by a three-member board appointed by the City Council. The Authority was established to promote, acquire, develop, construct, own and lease facilities within the City which are approved by the City Council for the purpose of promoting the economic, social, industrial, cultural and commercial growth and for the general benefit of the City and its residents. Administration of its various programs is performed by City employees. Although it is legally separate from the City, the Authority is reported as if it were part of the primary government because its sole purpose is to finance and construct the City’s public buildings. Separate financial statements for the Authority are not prepared.

50 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

Basis of Presentation The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, equities, revenues and expenditures or expenses. The various funds are grouped by type in the general purpose financial statements. The following fund types and account groups are used by the City. Governmental Fund Types The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) requiring separate accounting because of legal or regulatory provisions or administrative action. The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, principal, interest and fiscal charges on long-term obligations other than obligations payable from the operations of Proprietary Fund Types. Capital Project Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities other than those financed by Proprietary Fund Types or Expendable Trust Funds. Proprietary Fund Types Enterprise Funds are used to account for operations which provide a service to the general public and are financed primarily by user charges from such services. Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. Fiduciary Fund Types Expendable Trust Funds are used to account for assets held in trust by the City for others. The City’s Expendable Trust Funds include the Entitlement Fund. Account Groups The General Fixed Assets Account Group is established to account for all fixed assets of the City other than those accounted for in the Proprietary Fund Types. Construction in progress, which recognizes the value of assets not completed, is also included in this fund. The General Long-Term Debt Account Group is established to account for all long-term indebtedness of the City except that accounted for in the Proprietary Fund Types. 51 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

Basis of Accounting The accounting and financial reporting applied to a fund is determined by its measurement focus. All Governmental Fund Types and Expendable Trust Funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by all Governmental Fund Types, Expendable Trust Funds and Agency Funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available). “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers property taxes as available if they are collected within 60 days after year-end. A one-year availability period is used for revenue recognition for all other Governmental Fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the Debt Service Fund for payments to be made early in the following year. Those revenues susceptible to accrual are property taxes, franchise taxes and interest. Sales taxes collected and held by the state at year-end on behalf of the City also are recognized as revenue. Fines, licenses and permits are not susceptible to accrual because, generally, they are not measurable until received in cash. All Proprietary Fund Types are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary Fund Type operating statements present increases (e.g., revenues, non-operating revenues and operating transfers in) and decreases (e.g., expenses, nonoperating expenses and operating transfers out) in net total assets. The accrual basis of accounting is utilized by the Proprietary Fund Types. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City does not apply Financial Accounting Standards Board (FASB) statements issued after November 30, 1989 for its Proprietary Funds. Cash Equivalents Cash equivalents include investments with original maturities of less than three months.

52 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

Other Taxes and Revenues Recognized state shared taxes, such as motor, gas and liquor taxes, represent payments received during the current fiscal period. Federal and state grant aid is reported as revenue when the related reimbursable expenditures are incurred. Unrestricted aid is reported as revenue in the fiscal year the entitlement is received. Charges for services are generally susceptible to accrual and are recorded as revenue when earned. Licenses, fees, fines, forfeitures and other revenues are generally not susceptible to accrual and are recorded when received in cash. Inventories Inventories, which primarily consist of water line maintenance materials, are valued at cost using the first-in, first-out (FIFO) method. The costs of Governmental Fund Type inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Insurance Prepaid insurance represents the payment of insurance premiums for coverage that benefits more than one fiscal period. The premium amounts are amortized over the policy periods. Deferred Bond Issue Costs and Unamortized Bond Discount Deferred bond issue costs and unamortized bond discount are amortized over the life of the debt using the effective interest method. Property, Plant and Equipment Property, plant and equipment owned by the Proprietary Fund Types are stated at actual or estimated historical cost, less accumulated depreciation. Contributed assets are recorded at estimated fair market value at the time received. Assets acquired through capital leases are recorded in the appropriate property, plant and equipment accounts and are depreciated over their estimated useful lives. Amortization of assets recorded under capital leases is included within Proprietary Fund Type depreciation expense. Depreciation of plant and equipment is provided on the straight-line basis over the estimated useful lives of the respective assets as follows:

Buildings

20–40 years

Plant and water/sewerage systems

35–75 years

Machinery and equipment

3–15 years

53 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

It is general practice to charge maintenance and repairs to expenses. Major expenditures for renewals and betterments are capitalized and depreciated over their estimated useful lives. Cost of assets sold or retired and the related amounts of accumulated depreciation are eliminated from the accounts in the year of sale or retirements, and any resulting gain or loss is reflected in the general purpose financial statements. General Fixed Assets General fixed assets have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the Governmental Fund Types and capitalized at actual or estimated historical cost in the General Fixed Assets Account Group. In the case of gifts or contributions, such assets are recorded in General Fixed Assets Account Group at fair market value when received. Certain improvements, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. No depreciation is provided on general fixed assets. Interest Expenditures Expenditures for interest on general long-term debt are accounted for in the year of payment. Compensated Absences Under the terms of the City’s personnel policy, City employees are granted vacation and sick leave in varying amounts. In the event of termination, an employee is paid for accumulated vacation days up to the equivalent of two years’ vacation (maximum of six weeks). Employees are paid for one-eighth of accumulated sick leave upon termination if they have five or more years of employment with the City. All employer related costs of vacation and sick leave are accrued and recorded when earned. Only the current portion of accrued vacation and sick leave is recorded in the Governmental Fund Types, and the remainder of the liability is reported in the General Long-Term Debt Account Group. All employer related costs of accrued vacation and sick leave in the Proprietary Fund Types is recorded entirely within those funds. Budgetary Procedures The reported budgetary data represents the final approved budget after amendments as adopted by the City Council. Amendments to the original budget were not material, and appropriations lapse at yearend. The basis of accounting is the same for both budgeting and GAAP reporting purposes. The City Council utilizes the following procedures in establishing the budgetary data reflected in the general purpose financial statements.

(1) Prior to the beginning of the fiscal year, the City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget provides a complete financial plan of all funds and activities for the upcoming fiscal year. 54 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

In no event shall the total proposed expenditures exceed the estimated revenues to be received plus any unencumbered cash reserves estimated to be on hand at the beginning of the budget year.

(2) Public hearings are conducted to obtain taxpayer comments.

(3) Prior to July 1, the budget is legally enacted through passage of an ordinance.

The appropriated budget is prepared by fund, department and program. Department heads may make transfers of appropriations within their departments. Upon written request by the City Administrator, the Council may, by ordinance, transfer part or all of any unencumbered appropriation balance from one department to another. The legal level of budgetary control is the department level.

Although the City is legally required to prepare budgets for all funds, there is no legal requirement to report on those budgets. Therefore, the Combined Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual presents a comparison of budget and actual for only the General Fund, Special Revenue Funds, Debt Service Fund and the Expendable Trust Fund.

All special revenue funds have annual appropriated budgets except for the Federal Emergency Management Measures Fund (FEMA). The FEMA Fund is activated only when the City is declared a state or federal disaster area.

Capital projects are budgeted on a project basis rather than on an annual fiscal basis; therefore, a comparison of actual to budget for Capital Project Funds would not be meaningful

Budget Adoption and Administration The following procedures will be followed in the preparation, adoption, administration, and control of departmental budgets within city organizations. Preparation The following fund types shall be budgeted:

• General Operating

55 | P a g e


3: Budget Overview

• • • • •

City of Lee’s Summit Annual Budget FY14

Special Revenue Debt Service Capital Projects Enterprise Internal Service

Prior to the preparation of departmental budget requests, the City Manager and Department Directors shall meet with the City Council to discuss priorities for the coming fiscal year. The priorities shall be the basis for which the Department Directors then prepare individual Program Budget requests for the upcoming year. The City Manager and Department Directors will meet to present and discuss their respective budget requests at least two months prior to the beginning of the new fiscal year. They will make adjustments as necessary to meet the overall budget goals and funding levels of the City. Budget Adoption The City Manager and Department Directors will submit their combined budget proposal to the Budget Committee one month prior to adoption. The Mayor and City Council will review the proposed budget draft during the Work Session preceding the meeting of adoption. The City Council shall publish in one or more newspapers in the City a general summary of the budget and a notice stating: 1) the times and places where copies of the message and budget are available for inspections by the general public; and 2) the time and place, not less than two weeks after such publication, for a public hearing on the budget. Adoption of the budget will be by passage of the budget ordinance by the City Council and approval by the Mayor, as provided by law. The budget shall provide a complete financial plan of all city funds and activities for the ensuing fiscal year and, except as required by law or this Charter, shall be in such form as the City Manager deems desirable or the Council may require. The budget must be balanced, in which expenses do not exceed revenues. In no event shall the total proposed expenditures exceed the estimated revenues to be received plus any unencumbered cash reserves estimated to be on hand at the beginning of the budget year. Expense categories for the City of Lee’s Summit include:

• Personal Services: Control of expenditures in the area of personal services is provided through position control. No new positions may be created without the approval of the City Manager, Mayor, and City Council. • Commodities: The Commodities category shall include uniforms that are purchased, office equipment and furniture, small tools, janitorial, fuel and lube and other items consumed in performing the function of the department.

56 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

• Contractual Services: Contractual Services are professional fees such as organizational memberships, legal fees, auditing, testing, service and equipment rentals, and maintenance and repair expenses incurred in the routine operation of the department. • Maintenance & Repairs: The Maintenance & Repairs category is for buildings, vehicles and equipment used in the delivery of service by the department. This also includes the Internal Services overhead charge. • Utilities: Utilities expenditures are those incurred for gas, electric, phone, cell phones, water and sewer. • Fuel & Lubricants: These are the petroleum expenditures incurred for motorized equipment and vehicles. • Depreciation: The periodic expense of assets based on value and estimated life of the capital assets. • Debt Service: This is the principal, interest and fiscal agent expenditures relating to general obligation, revenue bonds, and certificates of participation as well as any lease purchase type debt instruments. • Interfund Transfers: Interfund transfers are used to provide resources on a program basis while still maintaining fiscal integrity by fund source and type. • Capital Outlay: Capital Outlays are expenditures incurred through the acquisition or enhancement of capital assets, to the extent the expenditure exceeds $5,000 and has a useful life or can be expected to extend the life two years or more. A more detailed explanation of this account may be found in the City's Capital Asset Policy. Administration No Capital Expenditure will be made unless:

• It was specifically budgeted for in the adopted budget, or the Assistant to the City Manager determines that there are funds available in the department's budget, and the City Manager approves the purchase in writing. • The City Council upon recommendation of the appropriate standing committees shall authorize the unbudgeted expenditure if it exceeds $10,000 to the extent that the reappropriation of funds does not diminish the overall goal and objectives of the departments program for which these funds are taken. The request for such approval shall be highlighted on the Council's Regular Agenda, and backup material provided which explains the purpose of the change and its impact on budget priorities. The City Manager shall approve all transfers of funds between line items within each department's budget which exceed $10,000. The City Manager may transfer part or all of any unencumbered 57 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

appropriation balance among programs within a department and, upon written request by the City Manager, the Council may by ordinance transfer part or all of any unencumbered appropriation balance from one department to another. Reporting: The Administration Department will provide timely reports of budget position to each Department Director, the City Manager, Mayor, and City Council. Expenditure Projection and Analysis: The Administration Department will analyze the expenditures of each department on a monthly basis and inform each Department Director whose expenditures appear to be exceeding the adopted budget. By the end of the seventh month of each budget year, the Administration Department will notify all Department Directors whose budgets are likely to be exceeded. The City Manager, Mayor, and City Council shall also be notified. Each Department Director so notified shall, within two weeks, inform the Finance Director and City Manager of the actions he/she will take to avoid exceeding the departmental budget. CONTROL OF BUDGET OVERRUNS Budget Overruns: If, during the budget year, the Administration Department shall determine that a department's expenditures will exceed the approved budget, the Assistant to the City Manager shall with the approval of the City Manager prepare an adjustment to the budget. If the department's expenditures are expected to exceed the approved budget a Budget Amendment shall be prepared for submission to the Mayor and City Council. In the event of an emergency, the City Manager may authorize an expenditure by a department which is in an "overrun" situation. Summary The Director of each department shall be held responsible and accountable for the expenditures of his/her department. The Assistant to the City Manager shall, through timely reports and analysis, keep Department Directors and elected officials informed of any possible budget problems. A department shall not exceed its approved budget without authorization from the City Manager. Amendments which change the total budgeted appropriations for any fund will be made through adoption of a budget revision ordinance.

CASH MANAGEMENT PROCEDURES

58 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

The City’s idle funds shall be invested in accordance with the Investment Policy adopted by the Mayor and City Council. Supplemental to these general policies and procedures the City’s Cash Management Officer shall monitor the cash and investment portfolio to maintain adequate collateral of deposits in excess of FDIC insurance. A schedule of collateral shall be maintained and monitored to insure that market values are equal to, or greater than 105% of estimated deposits in the overnight money market account. Weekly cash flow projections should be determined and/or calculated by comparing general ledger cash balances (cash board) with expected receipts or funds needed to cover next two payments cycles, security maturities and payments. If cash on hand is projected to exceed short term needs, then an analysis should be made to invest excess in a fixed maturity security. The new investment maturity should attempt to provide continuous monthly maturities up to a maximum of three years. The interest rate quoted may be tied to another rate to allow for market fluctuations (i.e, the most recent ninety-day (90) treasury bill plus or minus basis points). Any such rate must be subject to independent verification. To accomplish the above listed duties the following activities should be performed on a daily basis: • • • • •

Log on to the Bank On-Line Account Inquiry system and print the account balance for that day. Compare the bank balance with the General Ledger Cash Board for reasonableness, i.e. recently issued checks or deposits that may not have cleared. Compare the accounts payable open items list for large payments scheduled for the current and subsequent week to arrive at a cash needs amount. Project any significant cash receipts due that would correspond with outgoing payments, i.e. sales tax normally wired on the tenth of the month, franchise tax receipts and any grant or tax payments. Establish regular vendor payments utilizing ACH process.

DEBT MANAGEMENT POLICY

DEBT TYPES The City of Lee's Summit is authorized to issue General Obligation Bonds, Revenue Bonds, and LeasePurchase Certificates of Participation.

In determining the type of bond to issue, the following factors should be considered: The direct and indirect beneficiaries of the project. A significantly large proportion of citizens should benefit from projects financed from general obligation bonds. 59 | P a g e


3: Budget Overview

o o o o o o

City of Lee’s Summit Annual Budget FY14

The time pattern of the stream of benefits generated by the project. The revenues that may be raised by alternative types of user charges. The cost-effectiveness of user charges. The effect of the proposed bond issue on the City's ability to finance future projects of equal or high priority. The true interest cost of each type of bond. The impact on the City's financial condition and credit ratings.

General Obligation Bonds The city is authorized to issue General Obligation Bonds payable from ad valorem taxes to finance capital improvements and equipment upon a two-thirds majority vote, and on general election dates a four-sevenths majority vote, of the qualified voters. The Missouri constitution permits the City to incur general obligation indebtedness for City purposes not to exceed 10% of the assessed valuation of taxable tangible property; and to incur general obligation indebtedness not exceeding an additional 10% for acquiring rights of way; constructing and improving streets, sanitary sewers, and storm sewers; and purchasing or constructing waterworks plants. General obligation, property tax-supported bonding should be used to finance only those capital improvements and long term assets, which have been determined to be essential to the maintenance or development of the City. The City should maintain a General Debt and Interest Fund balance which is at least 50% of the average annual debt service. Revenue Bonds The City is also authorized to issue Revenue Bonds to finance capital improvements to its combined water and sewerage system, airport and sanitary landfill facilities. These types of Revenue Bonds require a simple majority vote. Revenue Bonds do not carry the full faith and credit of the City in servicing bond indebtedness, and such bonds are not considered in determining the legal debt margin resulting from the 20% limitation described above. However, if any taxes are pledged or dedicated to the payment of revenue bonds (sales taxes, property taxes etc.) the bonds must be voted as general obligation bonds, the debt limit must be observed, and all bonds must be paid off within 20 years.

Revenue supported bonds should be used to limit potential dependence on property taxes for those projects with available revenue sources, whether self-generated or dedicated from other sources.

60 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

Adequate financial feasibility studies should be performed for each project to provide assurances as to the self-liquidating nature of the project or adequacy of dedicated revenue sources. 63-20 Corporations (Municipal Building Authority) Internal Revenue Service Ruling 63-20 allows the City to create not-for-profit corporations. Through these corporations, the City can issue tax-exempt bonds for the lease purchase of equipment and facilities without the voter approval required for the issuance of general obligation bonds--the City's obligation under a one-year annually renewable lease is not an "indebtedness" according to the Missouri Constitution. The City has financed several projects and equipment purchases through the Lee's Summit Municipal Building Authority. Lease financing is appropriate whenever the introduction of leased equipment and/or a capital improvement results in verifiable operating savings that, properly discounted, outweigh the lease financing costs. Adequate financial feasibility studies should be performed for all innovative financing proposals such as lease and lease-purchase agreements, tax increment financing, pool participation, and special assessment projects. Long term borrowing will be confined to construction of capital improvements and acquisition of capital equipment too large to be financed from current revenues. Proceeds from long-term debt should only be used for construction project costs, acquisition of other fixed assets, bond issue costs, debt service reserve requirements, and refunding of outstanding bond issues and will not be used for current, ongoing operations. Debt will be extinguished within a period not to exceed the expected useful life of the capital project or equipment. The City should actively monitor its investment practices to ensure maximum returns on its invested bond funds while complying with Federal arbitrage guidelines. The Finance Department should continually monitor outstanding debt issues to verify compliance with debt covenants. The City's financial management policies should be oriented to maintain a balanced relationship between issuing debt and pay as you go financing.

Financial Advisor

61 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

The City shall retain the services of a Financial Advisor to assist the city in identifying capital financing alternatives and planning its debt program. The financial advisor's role in the debt issuance will vary depending on whether bonds are issued through a competitive or negotiated method of sale. The financial advisor should have no affiliation with the underwriting of a particular issue of the city. The financial advisor and or employees of the financial advisor shall not have made political contributions to any candidate for public office in the city for a period of two years preceding their selection as financial advisor. Method of Bond Sale When appropriate, new debt issues will be offered utilizing the competitive bid process. In a competitive sale, the financial advisor will assist in determining the structure and timing of the issue, prepare bond documents and rating agency presentations and evaluate the best bid and assist in the closing transaction. Refunding of Existing Debt The city will consider undertaking a refunding when one or more of the following three conditions exist: 1.

The present value of all refunding costs, (including interest, call premium, bond counsel, financial underwriter spread/discount and other issuance costs) is less than the present value of the current interest. Net present value savings should approximate a minimum of three percent (3%).

2.

The city wishes to restructure debt service.

3.

The city wishes to eliminate old bond covenants that may have become restrictive.

Financial Underwriter The financial underwriter shall determine which bid for the city's bonds is best by reviewing the pricing of comparable issues, talking to potential investors, identifying other similar issues that are likely to be in the market at the same time, and assessing the level of competition among various underwriting firms utilizing the Negotiated Sale process.

The financial underwriter and or employees of the financial underwriter shall not have made political contributions to any candidate for public office in the city, for a period of two years preceding their selection as financial underwriter. 62 | P a g e


City of Lee’s Summit Annual Budget FY14

3: Budget Overview

Federal Arbitrage Compliance Arbitrage is the difference between the yield on an issuer's tax exempt bond and the investment income earned on the proceeds. Arbitrage profits are earned when lower-yielding tax-exempt bond proceeds are invested in higher-yielding taxable securities. Federal arbitrage restrictions imposed by the federal government prohibit an issuer from retaining arbitrage profits when investing bond proceeds at a yield that exceeds the yield on the bonds. The city will calculate or contract with a reputable firm to calculate, any arbitrage liability, and rebate such, to the U.S. Treasury in accordance with federal guidelines.

CAPITAL IMPROVEMENT PROJECTS (CIP) BUDGET ADOPTION AND ADMINISTRATION POLICY

The following procedures will be followed in the preparation, adoption, administration, and control of capital projects. Preparation and Adoption The City’s Charter mandates the development and annual review of a capital improvements plan and estimated operating and maintenance costs of the proposed improvements. The plan is formally adopted each year by the Planning Commission as part of the Comprehensive Plan. This approach addresses legal requirements for public hearings on the location, nature and extent of all projects. All costs identified for the first year of the plan are included in the City’s Operating Budget, which is adopted by the Mayor and City Council, for the upcoming fiscal year. Capital Expenditures Capital Expenditures are expenditures incurred through the acquisition or enhancement of fixed assets, to the extent the expenditure exceeds $1,000 and has a useful life or can be expected to extend the life three years or more. Capital Project Financing The City of Lee's Summit is authorized to issue General Obligation Bonds, Revenue Bonds, and Lease-Purchase Certificates of Participation. In determining the type of bond to issue, the following factors should be considered:

The direct and indirect beneficiaries of the project. A significantly large proportion of citizens should benefit from projects financed from general obligation bonds.

63 | P a g e


3: Budget Overview

• • • • • •

City of Lee’s Summit Annual Budget FY14

The time pattern of the stream of benefits generated by the project. The revenues that may be raised by alternative types of user charges. The cost-effectiveness of user charges. The effect of the proposed bond issue on the City's ability to finance future projects of equal or high priority. The true interest cost of each type of bond. The impact on the City's financial condition and credit ratings.

General Obligation Bonds The city is authorized to issue General Obligation Bonds payable from ad valorem taxes to finance capital improvements and equipment upon a two-thirds majority vote, and on general election dates a four-sevenths majority vote, of the qualified voters. The Missouri constitution permits the City to incur general obligation indebtedness for City purposes not to exceed 10% of the assessed valuation of taxable tangible property; and to incur general obligation indebtedness not exceeding an additional 10% for acquiring rights of way; constructing and improving streets, sanitary sewers, and storm sewers; and purchasing or constructing waterworks plants. General obligation, property tax-supported bonding should be used to finance only those capital improvements and long term assets, which have been determined to be essential to the maintenance or development of the City. The City should maintain a General Obligation Debt Service and Interest Fund balance which is at least 50% of the average annual debt service. Revenue Bonds The City is also authorized to issue Revenue Bonds to finance capital improvements to its combined water and sewerage system, airport and sanitary landfill facilities. These types of Revenue Bonds require a simple majority vote. Revenue Bonds do not carry the full faith and credit of the City in servicing bond indebtedness, and such bonds are not considered in determining the legal debt margin resulting from the 20% limitation described above. However, if any taxes are pledged or dedicated to the payment of revenue bonds (sales taxes, property taxes etc.) the bonds must be voted as general obligation bonds, the debt limit must be observed, and all bonds must be paid off within 20 years. Revenue supported bonds should be used to limit potential dependence on property taxes for those projects with available revenue sources, whether self-generated or dedicated from other sources. Adequate financial feasibility studies should be performed for each project to provide assurances as to the self-liquidating nature of the project or adequacy of dedicated revenue sources.

63-20 Corporations (Municipal Building Authority) 64 | P a g e


3: Budget Overview

City of Lee’s Summit Annual Budget FY14

Internal Revenue Service Ruling 63-20 allows the City to create not-for-profit corporations. Through these corporations, the City can issue tax-exempt bonds for the lease purchase of equipment and facilities without the voter approval required for the issuance of general obligation bonds--the City's obligation under a one-year annually renewable lease is not an "indebtedness" according to the Missouri Constitution. The City has financed several projects and equipment purchases through the Lee's Summit Municipal Building Authority. Lease financing is appropriate whenever the introduction of leased equipment and/or a capital improvement results in verifiable operating savings that, properly discounted, outweigh the lease financing costs. Adequate financial feasibility studies should be performed for all innovative financing proposals such as lease and lease-purchase agreements, tax increment financing, pool participation, and special assessment projects. Long term borrowing will be confined to construction of capital improvements and acquisition of capital equipment too large to be financed from current revenues. Proceeds from long-term debt should only be used for design and construction project costs, acquisition of other fixed assets, bond issue costs, debt service reserve requirements, and refunding of outstanding bond issues and will not be used for current, ongoing operations. Debt will be extinguished within a period not to exceed the expected useful life of the capital project or equipment. The City's financial management policies should be oriented to maintain a balanced relationship between issuing debt and pay as you go financing.

65 | P a g e


Section 4: Revenue Projections


City of Lee’s Summit Annual Budget FY14

4: Revenue Projections General

Revenue Projections The primary support for general services comes from diverse revenue sources such as property taxes, sales taxes, and utility franchise taxes. Combined, these major revenue sources comprise approximately 78% of all general fund revenues. The balance of revenues is derived from user charges, fines and forfeitures, investment income, intergovernmental revenues and miscellaneous fees and charges. In previous years, these revenue sources experienced steady growth allowing the City to maintain and in some service areas expand the level of service. Full recovery from the recent economic downturn did not occur in FY13 as sales taxes remained stagnant and even experienced slight decline in some areas. Modest growth was budgeted in property tax revenues but a major decrease was budgeted for sales tax revenue. The following revenue projection pages are prepared for all major revenue sources over $1 million. They are presented in order of highest to lowest total revenue. The starting point for all account revenue projections begins with the new construction building permit activity of the past year. From this, assessed valuations are projected for the property tax accounts. The building permit information also provides an estimation of population growth, which is normally factored into the various accounts such as license, permits and fees. Historical account activity is tracked to also provide trend information to provide a comparative basis for projections. Each revenue page has five sections, which lists the account code, legal authorization, description, basis of revenue projection and the fund collection/distribution. 1. The Account Code section lists the specific line item that the receipt will be posted to in the city's general ledger accounting system. 2. The Legal Authorization section should list either the state statute or city ordinance, which allows the city to levy and receive this source of funds. 3. The Description section provides a brief explanation of the formula (i.e. tax levy times assessed valuation or building permit square footage times rate per foot), or established schedule of fees. 4. The Basis of Revenue Projection section describes the logic and/or assumptions used to arrive at the projected amounts and possibly he history or trend analysis of the particular account. The Fund Collection/Distribution section lists the most recent five years of actual receipt activity in the account, plus a projection for the current fiscal year and the upcoming budget

67 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

year. In the case where a single revenue account is received in more than one fund, all funds are listed by fund category and then totaled.

68 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

69 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

70 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

71 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

72 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

73 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

74 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

75 | P a g e


4: Revenue Projections General

City of Lee’s Summit Annual Budget FY14

76 | P a g e


General Projections 4: Revenue

City of Lee’s Summit Annual Budget FY14

77 | P a g e


General Projections 4: Revenue

City of Lee’s Summit Annual Budget FY14

78 | P a g e


Section 5: General Fund Overview


City of Lee’s Summit Annual Budget FY14

5: General Fund Overview General

General Fund The General Fund is the general operating fund of the City. Expenditures from this fund provide the basic city services, such as police and fire protection. It also funds the following departments and the services they provide: Administration, Codes Administration, Finance, Law, Municipal Court, Planning & Development, and Public Works. The General Fund is categorized as a governmental fund type. The major revenue sources of this fund are property taxes, retail sales taxes, and utility franchise taxes. The remaining revenues are derived from the various user fees and other sources. A key element of the budget process is projecting the fund’s ending reserve balance. Total expenditures for the upcoming fiscal year are set based on projected revenues for the coming year and to ensure fund reserves will remain at the level set by policy. Fund balance reserves represent the unappropriated accumulation of the difference between actual revenues and expenditures. The source and timing of revenues dictates the level of fund balance necessary to avoid cash shortages in normal day to day operations. The City recognizes the need to establish and maintain adequate reserves to avoid any disruption in service level caused by either a downturn in a significant revenue item or one that is only received at a particular time such as property taxes in December. Accordingly, the City Council adopted a resolution that requires a minimum fund balance of 20% of operating fund expenditures, plus an additional 5% reserve for economic development opportunities. The City utilizes Generally Accepted Accounting Practice (GAAP) based budgeting for the General Fund. This requires that the modified accrual method of accounting is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of current period. Revenues susceptible to accrual are property taxes, franchise taxes and interest revenue. Sales taxes collected and held by the state at year-end on behalf of the City also are recognized as revenue. User charges, fines, licenses, permits and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash.

80 | P a g e


5: General Fund Overview General

City of Lee’s Summit Annual Budget FY14

81 | P a g e


GeneralFund Overview 5: General

Source

City of Lee’s Summit Annual Budget FY14

FY12

FY13

FY14

Actual

Adopted

Adopted

Property tax Sales tax Franchise tax Motor vehicle taxes Other taxes Fines and forfeitures Licenses and permits Intergovernmental Charges for services Investment earnings Other Transfers in

16,786,125 11,736,388 13,743,797 3,028,465 374,351 1,534,265 1,328,522 823,492 3,605,332 90,684 1,617,830 2,502,778

17,419,687 14,154,304 14,396,746 2,975,612 373,072 1,526,818 1,142,674 715,348 3,505,177 152,052 1,448,167 1,756,350

17,453,036 13,271,010 14,076,315 2,960,656 342,236 1,519,417 1,279,490 829,576 3,521,327 90,684 1,591,091 1,996,350

Total

57,172,029

59,566,007

58,931,188

Change from FY13 Budget $

%

33,349

0.2%

-883,294

-6.7%

-320,431

-2.3%

-14,956

-0.5%

-30,836

-9.0%

-7,401

-0.5%

136,816

10.7%

114,228

13.8%

16,150

0.5%

-61,368

-67.7%

142,924

9.0%

240,000

12.0%

-634,819

-1.1%

Summary of Significant Assumptions and Changes for FY14

• • • •

Sales tax revenues assume 1.5% growth from FY13 actual amounts Property tax calculation based on preliminary assessments with limited growth assumed Natural gas franchise tax assumes a 19% decrease from FY13 budget to reflect lower gas prices One – time revenues include a $1.0m repayment of a construction loan and $180k collection of taxes paid to another jurisdiction 82 | P a g e


GeneralFund Overview 5: General

Department

City of Lee’s Summit Annual Budget FY14

FY12

FY13

FY14

Actual

Adopted

Adopted

Administration Pub. Wks./Engineering Law Enforcement Fire/Ems Services Finance Legal Services Planning & Development Municipal Court PW Operations Division Codes Administration

3,328,097 3,726,103 18,057,298 15,366,136 5,220,935 1,367,416 940,979 835,763 6,377,682 1,304,349

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

3,452,679 3,772,615 19,043,675 15,469,178 5,129,724 1,130,871 974,474 815,560 7,149,681 1,450,683

Total

56,524,758

59,436,976

58,393,223

Change from FY13 Budget $

%

482,206

14.0%

-317,390

-8.4%

-478,589

-2.5%

-226,994

-1.5%

-318,615

-6.2%

-67,322

-6.0%

440

0.0%

-36,115

-4.4%

-63,622

-0.9%

-21,835

-1.5%

-1,043,753

-1.8%

Summary of Significant Changes

• • • • •

2% budget reductions for all general fund departments Performance based merit increases in personal services of 2% average overall Modified implementation of Phase 2 of the Evergreen Compensation and Benefit Study Re-organization of Administration department to include expenses for Boards and Commissions from the Finance department Employee health insurance increase of 8.8%

83 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

Type

FY12

FY13

FY14

Actual

Adopted

Adopted

Change from FY13 Budget $

%

-777,086

-1.9%

Personal services Supplies for resale Other supplies, services and c Repairs and maintenance Utilities Fuel and lubricants Miscellaneous Interest Capital outlay Interdepartment charges Transfers out

39,730,876 119,082 7,309,274 1,241,330 1,492,090 719,678 64,222 5,399 42,851 4,843,641 956,315

42,034,487 141,880 7,599,031 1,470,447 1,613,189 796,241 164,771 68 33,000 5,105,292 478,570

41,257,401 135,880 7,491,286 1,292,363 1,641,229 692,078 119,130 24 0 5,199,218 560,532

28,040

1.7%

-104,163

-15.1%

Total

56,524,758

59,436,976

58,393,223

-6,000

-4.4%

-107,745

-1.4%

-178,084

-13.8%

-45,641

-38.3%

-44

-183.3%

-33,000 93,926

1.8%

81,962

14.6%

-1,043,753

-1.8%

Continued: Summary of Significant Changes

• • •

Average 1% decrease in city funded LAGERs retirement payments for general fund employees $34k savings from redesign of property and liability insurance policy and transition to city managed program Consolidation and re-financing of a general fund loan to the Airport Enterprise fund

84 | P a g e


GeneralFund Overview 5: General

Full Time Equivalents

Administration Pub. Wks./Engineering Law Enforcement Fire/Ems Services Finance Legal Services Planning & Development Municipal Court PW Operations Division Codes Administration Total

City of Lee’s Summit Annual Budget FY14

FY12

FY13

FY14

Change from

Adopted

Adopted

Adopted

FY13 Budget

32.0 39.0 210.7 146.0 18.0 10.5 9.7 12.0 50.2 17.0

27.0 41.8 209.7 146.0 22.5 10.5 9.7 12.0 49.2 17.0

27.0 38.7 204.0 146.0 21.0 10.5 9.9 11.5 46.7 16.0

0 -3 -6 0 -2 0 0 0 -3 -1

545

545

531

-14

Summary of Significant Changes

• •

Reorganization of Administration department Funding to fill vacant positions was reduced as part of budget reductions

85 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

General fund budget reductions At the start of the FY14 budget process the Budget Committee and City Manager reviewed the general fund 5 year model to determine the availability of funds based on the projected operating revenues forecasted for FY14. The model indicated a revenue shortfall of $1.2m for operating, reoccurring, revenues. When one time revenues were included, the FY14 budget was projected to be ‘balanced’. The Budget Committee and City Manager agreed to incrementally reduce general fund expenditures by $600k for FY14 and $600k for FY15 to achieve a balanced budget of operating revenues and operating expenses without the use of one-time revenues. The general fund departments were asked to reduce their budgets by 2% from an original total request of $60.5m. A summary of the reductions can be found in the table below. Amount $109,225 $96,113 $71,978

Summary of Expenditure Reductions Reduction FTE Fire Department Miscellaneous Construction & permit fees E-Ticketing (moved to FY13)

Department Fire Police Police

$69,136 Eliminate 2 FT maintenance workers (net)

2

PW Ops

$64,157 $60,000 $49,213 $43,800 $42,760

Eliminate proactive code enforcement Reduced development legal fees Eliminate Customer Service Supervisor (net) Maintenance and Repairs Eliminate PW Inspector (net)

1

Codes Admin PW Eng Fire PW Eng

$41,537 $39,350 $39,000 $38,765 $36,500 $35,000 $34,536 $29,550 $27,500 $27,000 $25,033 $23,000 $22,450 $21,000 $18,665 $15,000 $15,000 $14,000 $10,549 $10,124 $9,970 $8,000 $7,000 $5,000 $3,973 $1,900

Asphalt budget Fire Department Training, Travel & meeting Fuel & lubricants Fire Department Overtime Fire Department Consumable Tools Funding for sidewalk offsets Consolidation of Phones following radio upgrade Professional fees Professional fees Eliminate PT records clerk Travel & meeting Training Supplies (chemical, office, janitorial) Misc personal services CBS Contingency E-Lets (moved to FY13) PD misc Eliminate PT court baliff Secretary - reduce hours Supplies & other Professional fees Holiday Party/Service Award Intern - reduce hours Reduce Parks & Rec MOU Training

1 1

0.5

0.3 0.25

0.25

PW Ops Fire Police Fire Fire PW Ops Police & Fire Fire Finance, Law Police Finance, Law, Court Fire Fire Admin Police Admin Police Police Court Planning Finance Admin Admin/HR Planning PW Ops Finance

$1,165,784 Total

35 Increased Revenue

Amt

Revenue Source $25,000 Pet licensing $13,000 Increase COMBAT $38,000 Total

Column1 Department Police Police 2

$1,203,784 Grand Total

86 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

Continued: Budget Reductions In addition to the 2% reductions for the general fund department budgets, the City Manager proposed expenditure reductions that would impact community partner organizations and the budgeting of naturally occurring vacancy savings. The table below lists proposed budget reductions as recommended by the City Manager.

Balancing the FY14 GF Budget Target Amount = $58.3M GF Revenue Projections $58,931,188 GF Expenditure Target

$58,331,188

GF Request Original Dept Request $60,507,525 Reductions: Solution 1: Risk Mgmt Savings ($34,500) Solution 2: 2% Dept Reductions ($1,203,784) Solution 3: Vacancy Savings ($800,272) Solution 4: ITS Projects ($76,245) Solution 5: B&I Transfer ($10,000) Solution 6: Arts Council ($16,000) Solution 7: Beautification ($36,000) REVISED TOTAL: $58,330,724

Summary of City Manager proposed reductions

• • • •

A redesign of the City’s risk management program is expected to reduce property and risk liability insurance premiums by $34k. The City’s average savings created from employee vacancies and turnover is approximately 2.7% or $800k of salary expenses Certain information technology (ITS) projects were delayed to a future fiscal year saving $76k A $10k reduction for the transfer to the business and industry fund (B&I) was recommended. The general fund transfer and business and industry fund revenues pay for services provided by the Chamber of Commerce, Downtown Lee’s Summit Main Street, and the Lee’s Summit Economic Development Council Reduced funding and transfers were proposed for Art’s Council and the Beautification Commission.

87 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

Budget Committee Recommendations (Final Adopted General Fund budget) On May 16, 2013, the Budget Committee reviewed the City Manager’s proposed budget, as outlined in the City Manager’s Budget Message, and recommended the following changes. A final general fund budget of $58,393,224 was presented and adopted by the City Council on June 6, 2013.

City Manager's Proposed Budget 58,931,188 58,392,724

GF Revenues: GF Expenditures: Reductions: B&I Transfer Art's Council Beautification

(10,000) (16,000) (36,000)

Total Expenditures: Net Income: Fund Balance %:

58,330,724 600,464 23.43%

Budget Committee's Amendments GF Revenues: GF Expenditures:

58,931,188 58,330,724

Amendments: B&I Transfer Art's Council Beautification Holiday Party

10,000 8,500 36,000 8,000

Total Expenditures: Net Income: Fund Balance%:

58,393,224 537,964 23.30%

Summary of Budget Committee Recommendations

• • •

Restore funding to the community partner organizations by eliminating the $10k reduction to the B&I fund Partial funding was restored to the Art’s Council and Beautification Commission The Budget Committee restored funding for the annual all employee holiday event

88 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

GENERAL FUND BALANCE During the budget process, the General Fund reserve balance is projected for five fiscal years out from the budget year to evaluate the long term impact of current budget and spending decisions. The projections are very fluid, particularly during the budget process and new information becomes available and various assumptions and budget levels are evaluated. The table below reflects the five year projections used during the FY14 budget process containing the information available at that time. GENERAL FUND BALANCE 2009 Est. Beginning Balance $ 21,201,763

Actual 2010

2012

Estimated 2013

Budget 2014

2015

2016

2017

2018

$ 12,171,750

$ 12,907,164

$ 12,398,138

$ 13,881,603

$ 13,554,662

$ 13,977,608

$ 15,243,364

2011

$ 23,217,068

$

27,326,464

Projected

Revenues

52,420,760

54,167,271

58,135,635

54,669,252

56,452,632

57,934,838

58,059,650

59,039,420

60,037,380

60,973,644

less: Expenditures Net Transfers In/(Out)

52,497,790 2,092,335

53,059,419 3,001,544

71,920,115 -1,370,234

55,568,443 1,634,605

58,239,442 1,277,784

57,887,191 1,435,818

58,883,767 497,176

59,123,653 507,180

59,288,983 517,358

60,087,443 527,716

$ 13,977,608

$ 15,243,364

$ 16,657,280

$1,265,756 9.1%

$1,413,917 9.3%

$ 23,217,068

$ 27,326,464

Change in Fund Balance: Amount $2,015,305 Percent 9.5%

$4,109,396 17.7%

Ending Balance

Fund Balance as % of Expenditures

44.2%

51.5%

$

12,171,750

$ 12,907,164

($15,154,714) -55.5%

16.9%

$ 12,398,138

$ 13,881,603

$ 13,554,662

$735,414 6.0%

($509,026) $ 1,483,465 -3.9% 12.0%

($326,941) -2.4%

$422,946 3.1%

23.2%

21.3%

23.0%

23.6%

24.0%

25.7%

27.7%

Until recently, General Fund revenues exceeded expenditures, as depicted in the following graph. In FY11, a $15.5 million court settlement created a large peak in expenditures. In addition, due to the ongoing economic downturn, general expenditures are projected to roughtly equal total operating revenues in the coming fiscal years. The Summit Woods Tax Increment Financing (TIF) agreement will mature in 2013, and 100% of the Economic Activity Taxes (EATS) and Payments in Lieu of Taxes (PILOTS) from that project will flow to the General Fund helping to increase revenues and restore the City’s fund reserves. For FY13, total revenues (including one-time payments) are expected to be above expenditures by 1%. General Fund Revenues and Expenditures Projected

75,000,000 70,000,000 65,000,000

($'s)

60,000,000 55,000,000 50,000,000 45,000,000 40,000,000

Revenues Expenditures

35,000,000 30,000,000 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Fiscal Year

89 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

In 2004, the City passed a General Fund policy that sets the City minimum general fund balance for the fiscal year at 20% of projected annual operating expenditures, plus an additional 5% is to be reserved or designated for economic opportunity funding. The chart above shows that the fund balance, as a percentage of expenditures, is above the 20% level but below 25% as referenced in the resolution.

General Fund Balance $35,000,000 25% of GF Expenditures

$30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2009

2010

2011

2012

2013

2014

Fiscal Year

2015

2016

2017

2018

Projected

Anticipated reductions to the General Fund as well retirement of the TIF as stated earlier will help bring the fund balance back within the targeted level for FY14 through FY17. Careful planning and budgeting will be required to ensure the balance remains within the stated policy in out years.

90 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

RESOLUTION NO. 04-07 A RESOLUTION OF THE CITY OF LEE'S SUMMIT, MISSOURI STATING THE CITY'S INTENT TO MAINTAIN THE CITY'S GENERAL OPERATING FUND UNRESTRICTED FUND BALANCE IN AN AMOUNT NO LESS THAN 25% OF ANNUAL OPERATING EXPENDITURES.

WHEREAS, the City Council established the City's policy to maintain a minimum fund balance of 20% of expenditures in 1992, which policy has been consistently reaffirmed, most recently in 1996; and,

WHEREAS, the City Council desires to consider the recommended practice of the Government Finance Officers Association (GFOA) to maintain a level of unreserved fund balance in the general fund which gives appropriate consideration to the factors of (1) Predictability of revenues and Volatility of expenditures, (2) Availability of resources in other funds, (3) Liquidity of funds and (4) Designations for specified allocations; and,

WHEREAS, the City of Lee's Summit recently had its general obligation bonds rated AA by Standard and Poors and Aa2 by Moody's Investor services based on the strength of the City's revenues and balance of reserves; and,

WHEREAS, in conformity with the recommended practice of the Government Finance Officers Association (GFOA) to maintain an appropriate level of unreserved fund balance in the general fund, and after giving due consideration to the factors relevant to making such a determination the Mayor and City Council desire to establish a 25% Fund Balance where 5% is reserved or designated for “Opportunity Funding."

NOW. THEREFORE BE IT RESOLVED THE CITY COUNCCIL OF THE CITY OF LEE'S SUMMIT, MISSOURI, as follows:

SECTION 1. That the City desires to maintain a minimum fund balance at the end of each fiscal year in excess of 25% of projected annual operating expenditures, where 5% is reserved or designated for "Opportunity Funding." The types of uses eligible for funding from the 5% Opportunity Funding Reserve shall include: (1) Matching funds for Grants (2) Economic Development/Business Retention (3) Planning Studies (4) Capital Projects

91 | P a g e


GeneralFund Overview 5: General

City of Lee’s Summit Annual Budget FY14

SECTION 2 Tile City Administrator and Staff are authorized to take all necessary steps to implement this policy. Section 3. This Resolution shall be in full force and effect from and after its passage and approval.

92 | P a g e


Section 6: General Fund Department Budgets


City of Lee’s Summit Annual Budget FY14

6: General Fund Department Budgets General

ADMINISTRATION

Administration provides the general supervision and support for all departments within the City and also serves as the link between the elected governing body and the staff of the City’s departments. Administration also oversees four internal service divisions whose primary function is to provide support for all City departments. Internal Service Divisions falling under the auspices of the City Manager's Office includes Information Technology Services, Fleet Operations, Central Building Services, and Human Resources. Beginning in FY12, the Administration office now prepares the budget, which was previously conducted by the Finance Department. The Budget preparation is a significant process that requires departmental coordination as well as support from the Mayor and City Council. Another significant capacity fulfilled by Administration is to provide support to the Mayor, City Council and various City committees. These committees are comprised primarily of a diverse set of volunteer citizens who perform a compelling service to City operations. Among other support activities, Administration provides public communication, research, analysis and recommendations on policy and service matters for the elected officials and the City committees. HUMAN RESOURCES The Human Resources Division reports to the Assistant City Manager, and it operates as a partial internal service agent for all City departments and employees. Its primary function is to administer and oversee all personnel and employee service programs including recruitment and hiring, performance management, labor relations, employee benefit programs, payroll, training and development, safety, workers compensation and risk management efforts.

94 | P a g e


6: General Fund Department Budgets General

City of Lee’s Summit Annual Budget FY14

95 | P a g e


6: General Fund Department Budgets General

City of Lee’s Summit Annual Budget FY14

96 | P a g e


6: General Fund Department Budgets General

City of Lee’s Summit Annual Budget FY14

97 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

98 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

99 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

CODES ADMINISTRATION The Codes Administration Department is staffed with 16 full time employees and consists of four closely related divisions (Administration, Permit and Plan Review, Building Inspections, and Neighborhood Services). Each division has a distinct yet vital part of code enforcement within the community. Through the Neighborhood Services Division, the department also facilitates the Community Development Block Grant (CDBG) funded Minor Home Repair Program. The mission of the Codes Administration Department is to promote and influence public safety and welfare by working with stakeholders in the planning & construction of buildings and building systems; and maintenance and use of private property. The Administration Division provides administrative functions for the department and also provides staff support to the Board of Appeals as well as other economic development related boards and committees. During the conceptual and planning stages of a project the Permit and Plan Review Division reviews all construction documents to ensure code compliance prior to permit approval and issuance of building permits. Once the building permit has been issued, the Building Inspections Division ensures the actual construction of the project complies with adopted building codes and approved construction documents through the performance of required inspections during various stages of the project. Finally, after project completion and occupancy, the Neighborhood Services Division assures the structures and property is used and maintained in a safe code complaint manner. In addition, Neighborhood Services is also responsible for zoning enforcement to ensure compliance with the provisions of the Unified Development Ordinance (UDO). The Minor Home Repair Program facilitated by the department provides a source for lowmoderate income families to make improvements to owner occupied single-family residences through CDBG grants obtained by the City. This program is often used to abate property maintenance concerns being pursued by the Neighborhood Services Division.

100 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

101 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

102 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

103 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

104 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

105 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

106 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

FINANCE The Finance Department is responsible for all cash receipts and disbursements and maintenance of an internal control structure that adequately safeguards the assets of the City. Finance also oversees the auditing, procurement, and reporting functions of the City. The department’s expenditures are allocated between five programs. Those programs are Departmental Administration, Budget and Accounting Services, Debt and Cash Management, Procurement, and Support to Development. All Finance department programs are classified in and charged directly to the General Fund.

The Departmental Administration program’s primary function is to account for general and administrative expenditures necessary to operate the department. These charges are common to all divisions and not directly associated with any particular one, i.e. Information Technology Systems and Central Building Services overhead and replacement allocations.

The Budget and Accounting Services program involves the traditional processing of all of the City's invoices for goods and services and recording all related general ledger transactions in order to prepare financial statements in conformity with Generally Accepted Accounting Principles. This program is also responsible for establishing and maintaining an internal control structure and procuring the independent financial audit each fiscal year. The objectives of an internal control structure are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition.

The Debt and Cash Management Program is responsible for establishing proper internal controls for the collection and distribution of revenue for the 70 active funds. In addition, this program oversees the City's outstanding and active debt issues approximating $74.3 million and maintains the City’s investment portfolio averaging $100 million according to the City investment policy and cash management procedures. Procurement provides centralized procurement of goods and services. The division is responsible for obtaining commodities and services at the most economical prices while ensuring compliance with all applicable laws and policies. It also directs the procurement of all major construction projects, professional services, heavy equipment, vehicles and other goods and services. Lastly, the division establishes contracts to provide an immediate and uninterrupted source of supplies for frequently used items and is responsible for the disposal of surplus property.

107 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

The Support to Development program accounts for finance related expenditures attributed to economic development and any associated tax incentive programs.

108 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

109 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

110 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

111 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

112 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

113 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

114 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14 FIRE DEPARTMENT

The Fire Department provides services to the community in the areas of fire protection, emergency medical services, rescue services, hazardous materials, and emergency management. The organization is assigned most emergency service functions of the city other than law enforcement. Contract emergency services are also provided for Greenwood and Unity Village. The Emergency Services Program of the department includes fire suppression, emergency medical services, rescue responses, hazardous materials mitigation, and the response and management of citywide emergencies and disasters. The department provides the emergency services from seven strategically located fire stations. Fire suppression services are rendered from seven staffed pieces of fire apparatus. This includes five pumping engines which are Compressed Air Foam System (CAFS) and two combination engine/ladder trucks. All frontline fire apparatus are equipped with thermal imaging cameras, carbon monoxide detectors and vehicle extrication equipment. All sworn personnel are state-licensed emergency medical technicians or paramedics providing emergency medical service. The department equips all fire apparatus with emergency medical supplies and operates five paramedic-staffed rescue ambulances. Specialized rescue services include the areas of high angle, fast water rescue, trench cave-in, automobile extrication, and confined space. All fire fighters are trained as hazardous materials first responders, and the department operates an advanced hazardous materials response team. The fire department serves as the coordinator for the city in managing citywide emergencies and disasters. The Prevention Program of the department provides for loss reduction activities in all mission areas. This includes fire prevention, hazardous materials prevention, and general safety awareness and education. The Prevention Program is designed to reduce the loss of life, injuries and property damage from fire, hazardous materials incidents, and/or man-made and natural disasters. The department operates a regional fire and emergency medical service communications center. In addition to serving as the focus for all city communications other than police, the center provides contract services for the Lake Lotawana, Lone Jack, Fort Osage, Sni Valley, West Peculiar, Western Cass Fire, Prairie Township, and Pleasant Hill Fire Protection Districts.

115 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

116 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

117 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

118 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

119 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

120 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

LAW DEPARTMENT The Law Department is divided into two divisions: Civil and Prosecution. By the City Charter, the City Attorney supervises and directs the Law Department. Civil Division: Division personnel consist of the City Attorney, one Deputy City Attorney, one Assistant City Attorney, one Police Legal Advisor, one Property & Liability Risk Management Officer , one Office Coordinator II, and a Legal Secretary. The Civil Division provides legal advice and counsel to the Mayor, City Council, appointed officials, and City staff on the full range of legal issues which confront the City of Lee's Summit. The City Attorney or his/her designee attends all City Council meetings and other board and committee meetings as necessary or upon request to provide legal guidance. In addition, the Civil Division attorneys regularly:      

 

confer and work with the City Manager, Department Directors and City staff to develop strategies for resolving legal issues; respond to lawsuits against the City; review and approve contracts and other legal documents prior to consideration by the City Council; draft ordinances, contracts, resolutions, conveyances and other legal documents; monitor and coordinate all litigation files with outside legal counsel; research, prepare memoranda and provide advice on various legal issues such as economic development, employment, real estate, environmental, procurement, contract compliance, planning and zoning, open records and meetings, local government liability and numerous constitutional matters; review current case law and legislative enactments to evaluate potential impact on the City; and work with City departments to collect on past due accounts.

Prosecution Division: Division personnel consist of one full-time Prosecutor, one part-time Prosecutor and two Paralegals. The Prosecution Division is responsible for prosecuting city ordinance violations in the City's Municipal Court and trials de novo, appeals, and jury trials in the Circuit Court of Jackson County. The ordinance violations range from routine traffic offenses to domestic violence offenses and include nuisance and animal control violations. The Prosecution Division also enforces the City's Fire Code, Building Code, and Zoning Regulations. The Prosecutors also advise police and other enforcement staff on the preparation and presentation of cases in court, as well as issues related to the Open Records laws.

121 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

122 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

123 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

124 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

125 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

126 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

MUNICIPAL COURT

The Lee’s Summit Municipal Court is a division of the Jackson County Circuit Court. The municipal court maintains all files and papers necessary to schedule and conduct trials, pleas, pre-trial hearings, sentencing, probation revocation hearings, and pre- and post-trial motions related to violations of city ordinances. The administrative and clerical staff, bailiff and judges administer the process of adjudicating matters under the Court's jurisdiction. The efforts of all are directed toward the goals of the fair and efficient administration of justice, to dispense equal justice to all, to provide courteous and respectful service to the public and to encourage respect for the rule of law.

The Lee's Summit Municipal Court consists of two elected Judges, Court Administrator, Deputy Court Administrator, two Probation Officers, Court Security Officer, Accounting Technician, Warrant Clerk, Bond Clerk, two Deputy Court Clerks.

Cases are scheduled for the first four Wednesdays and Thursdays of each month beginning at 8:30 a.m., with a final docket held at 3:00 p.m. Presiding Judge James M. Tobin presides over Division 263 on Thursdays, and Judge Dana M. Altieri presides over Division 243 on Wednesdays. Special dockets are devoted to animal control cases, domestic violence cases, nuisance cases and zoning matters from the Neighborhood Services Division. An 8:00 a.m. prisoner arraignment docket is held on Tuesday of any week lacking a Wednesday court docket.

If the individual charged with the offense pleads guilty, a fine, imprisonment or probation may be assessed. If the defendant pleads not guilty, a bench trial is conducted. The defendant may appeal a finding of guilty to the Jackson County Associate Circuit Court. In addition, the Court operates a Violations Bureau which permits individuals charged with certain traffic and other violations to pay a fine without appearing before the Judge.

127 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

128 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

129 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

130 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

131 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

PLANNING & DEVELOPMENT DEPARTMENT

The Planning & Development Department provides support services to the development community and the general public on land use matters

The Department is staffed with 9 full time employees and is organized into three Divisions consisting of Administration, Current and Long-Range Planning. The Current Planning Division processes applications for rezoning, special use permits, special event permits, home occupations, variances, preliminary and final development plans and subdivision plats and issues sign permits and zoning approvals. The Longrange Planning Division prepares current and future land use plans, provides updates to the Comprehensive Plan, compiles statistics including population projections, produces the annual development report, prepares maps used by the Department and public and manages the CDBG program.

The planning staff reviews all applications and accompanying plans and makes recommendations to the appropriate board. The department provides staff support for the Planning Commission, City Council, Board of Adjustments, Historic Preservation Commission, Community Development Committee, Community Development Block Grant Program Committee as well as ad hoc Committees appointed by the City Council or Planning Commission. The department also provides information to the general public, including realtors, appraisers, developers, contractors, citizens and others, regarding general and specific land use issues.

Planning and Development also participates in special projects such as corridor studies, land use initiatives and targeted quadrant comprehensive plan reviews as needed.

132 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

133 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

134 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

135 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

136 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

137 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

138 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

POLICE DEPARTMENT The Police Department is comprised of three (3) Divisions: Operations, Investigations, and Administration. The Department is allocated 143 Police Officers and 68 Civilian Staff for a total of 211 personnel (206.70 FTE’s). The Administration Division consists of six (6) major components. Those components include the Animal Control Unit which is responsible for both public health and safety issues related to domestic and nondomestic animals. The Communications Unit handles all 9-1-1 calls for the City as well as non-emergency calls for Police and Animal Control. The Public Information Unit is responsible for media relations, managing the hiring process, and community interaction and crime prevention education through the Crime Prevention Officer. The Unit also supports the Police Service Officers who perform various functions including walk-in police reports, fingerprinting, and child-safety seat inspection and installation. The Professional Standards and Compliance Units have overall responsibility of ensuring compliance to policy and procedure by the Department. This is achieved through planning and research and policy development. The Facilities Maintenance Unit is responsible for the overall upkeep and repair of the police facilities as well as maintenance of the Departments’ communications equipment and installation of mobile radios, mobile data terminals, and other equipment. Lastly, the Information Management Unit handles the purchasing function, payroll function, and all other fiscal responsibilities, as well as supervision of the Records Unit. The Alarm Coordinator is also part of the Records Unit. The Operations Division includes the District Patrol, Traffic Safety, and Detention Units. The District Patrol function provides 24 hour police service. They answer calls for service, perform initial crime investigation, and arrest offenders of the law. A K-9 Unit also supports the Patrol Officers. The Traffic Safety Units’ primary responsibilities are investigating motor vehicle crashes, and enforcement of state and local traffic laws. The Detention Unit houses short-term inmates and is responsible for the inmates’ life-care needs while in custody. The Investigations Division is comprised of three (3) Units; Criminal Investigations, Special Investigations and Juvenile Investigations. The Criminal Investigations Unit performs follow-up investigative work on reported crimes. In addition, two (2) Domestic Violence Investigators are assigned to the Unit. The Special Investigations Unit investigates narcotics law violations, liquor law violations, and other vice crimes. The Juvenile Investigations Unit is responsible for all police-related interactions with youth, including: DARE, School Resource, and Youth Court, which acts as a follow-up in the prevention of delinquency. Two other Units which add support to the Department, but operate out of the Investigations Division, are the Polygraph Unit and the Bomb Unit. The Polygraph Unit handles internal affairs investigations. The Bomb Unit renders assistance with explosives or the threat of explosives. They also provide service to other agencies as needed.

139 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

140 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

141 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

142 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

143 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

144 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

145 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14 ENGINEERING

The Public Works Engineering Division is comprised of the Administration Group, a Project Engineering Group, an Engineering Support Group, a Development Engineering Group, a Traffic Engineering Group, and a Construction Management Group. Funding is primarily from the General Fund, supplemented by transfers from the various enterprise and capital project funds for directly related program costs. The Public Works Administration Group includes the Department director and other support staff who provide overall guidance and management of all divisions of the Public Works Department. The Administration Group also includes the centralized customer service function for the department. The Project Engineering Group manages the design process for the City's major drainage, water, and sewer infrastructure projects, as well as some road projects. A significant portion of the work produced by this group is in-house design. The Engineering Support Group includes technicians that support the in-house design efforts as well as additional engineering project management for road and airport projects. The support group also provides engineering services to the Public Works Operations Division when needed. Development Engineering provides the engineering services needed to support quality growth and development in the community. It provides review of residential development plans for infrastructure (sanitary sewers, water mains, storm water systems, streets, and traffic controls) sufficiency, serviceability, compatibility, and integration with existing facilities. The Public Works Inspections section inspects all developer-constructed infrastructures for compliance with City codes and makes recommendations for acceptance of the facilities as public. The Traffic Engineering Group is responsible for design of traffic control devices, street lighting and some road projects within the City. The group also provides engineering services related to traffic operations and works closely with the Public Works Operations Division. The Traffic Engineering Group is also responsible for the long-range planning of transportation improvements in the City, including the City’s Thoroughfare Master Plan. The Construction Management Group is responsible for the oversight and inspection of road, storm sewer, water and sanitary sewer capital projects. Duties generally include monitoring construction schedules and budgets, overseeing compliance with contract legal requirements, inspecting construction for conformance to project plans and technical specifications, and communication with members of the public affected by the construction project. All of the groups work extensively with other divisions and departments within the City as well as providing professional staff interface with organizations such as the Mid-America Regional Council (MARC), the Missouri Department of Natural Resources (MDNR), and the Missouri Department of Transportation (MoDOT).

146 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

147 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

148 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

149 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

150 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

PUBLIC WORKS OPERATIONS

The Public Works Operations Division maintains public infrastructure—the transportation network including City owned traffic signals, school flashers, street lights and the storm water collection system. During the winter months snow removal becomes the top priority. The Division falls within the Operations Group (with the Airport Division and Solid Waste Division) under the Deputy Director of Public Works. The Operations Division is divided into six main groups which include administration, stormwater, bridge and right-of-way, traffic, street maintenance, and capital pavement management. The administration group coordinates the budget and tracking of information and costs within the Division. An infrastructure management software program called Cityworks is utilized to track costs, evaluate efficiency, and manage performance. This group also administers the Adopt a Street program; all locations adopted are either a half mile or one mile in length. The street maintenance group performs pothole patching, pavement inspection (for the Overlay, Slurry seal and Crack seal programs) and maintenance on streets, alleys and City owned parking lots. The City currently has 1,029 lane miles of City owned pavement. The storm water group inspects, maintains, and repairs the 1,313,720 lineal feet of storm pipe as well as the 14,336 storm water structures currently in the system. The street sweeping program is also part of this group. The bridge and right-of-way group performs maintenance and repair on the 52 City maintained bridges as well as sidewalk maintenance, tree trimming, right-of-way mowing, weed spraying and litter pickup. The traffic group fabricates and installs street name signs, regulatory signs and warning signs throughout the City. They also perform paint striping on City owned parking lots and cross-walks. This group also performs maintenance and repair on 54 signaled intersections and 1500 City owned street lights, including 133 downtown street lights. This group also performs locates for any excavations in the vicinity of City owned signals and street lights. Capital pavement management is also administrated out of this division. The pavement management program includes crack seal, micro surface, ultra thin bonded wearing surface, overlay and curb replacement for 1,029 lane miles of City maintained roadway. MicroPaver software is currently being implemented to evaluate the roadway infrastructure based on current pavement inspections. MicroPaver once fully functional will identify priorities and trends in capital pavement management. Capital pavement management program also oversees the sidewalk gap and repair bond program. The city is responsible for over 350 miles of sidewalk.

151 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

152 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

153 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

154 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

155 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

156 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

157 | P a g e


GeneralFund Department Budgets 6: General

City of Lee’s Summit Annual Budget FY14

158 | P a g e


Section 7: Special Revenue Funds


7: Special Revenue Funds General

City of Lee’s Summit Annual Budget FY14

Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trust or major capital project) requiring separate accounting because of legal or regulatory provisions or administrative action. The funds in this section are categorized as governmental fund type. The City’s Special Revenue Funds are as follows: PARKS AND RECREATION SPECIAL REVENUE FUNDS: Park Board (Parks & Recreation) — Accounts for activities of the Park Board, who administers operations of all City parks. Senior Center (Gamber Center) — Accounts for the activities of the Gamber Community Center. Swimming Pool (Aquatics) — Accounts for the activities of the municipal swimming pool operation. Community Center — Accounts for the activities of the Legacy Park Community Center operation. Cemetery Trust — Accounts for plot and monument sales for perpetual care funding.

OTHER SPECIAL REVENUE FUNDS: Business and Industry Fund — Accounts for and distributes the proceeds from a 5% tax on certain gross receipts of hotels, motels, and similar places of business. CDBG Entitlement Fund — Accounts for Community Development Block Grant (CDBG) federal funding passed through to other agencies. Violence Against Women Grant Fund – Accounts for federal monies used for the protection of women.

160 | P a g e


7: Special Revenue Funds General

City of Lee’s Summit Annual Budget FY14

PARKS AND RECREATION DEPARTMENT SPECIAL REVENUE FUNDS The Parks and Recreation Department is structured within six programs: Administration, Planning and Development, Operations and Construction, Grounds Maintenance, Legacy Park, and Beautification Commission. Within these programs, the department administers eight funds: five Special Revenue Funds, two Capital Project Funds (greenway and Neighborhood Development), and one Enterprise Fund (Harris Park Community Center). Descriptions and budgets for the Capital Projects and Enterprise Funds may be found in their respective sections of this document. The special revenue funds of the Parks and Recreation Department include: Parks & Recreation, Gamber Center, Swimming Pool, Community Center, and Cemetery Trust Funds. They are accounted for as special revenue funds and utilize Generally Accepted Accounting Practice (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due. Revenues susceptible to accrual are property taxes and interest revenue. Admission fees, user charges, concession sales and miscellaneous revenue are not susceptible to accrual.

161 | P a g e


7: Special Revenue Funds General

Revenues Charges for services Fines and forfeitures Intergovernmental Investment earnings Material and fuel sales Other Sale of property Taxes Transfers in Total

City of Lee’s Summit Annual Budget FY14

Parks & Legacy Park Harris Park Gamber Summit Cemetery Recreation Community Community Grand Total Center Waves Trust Fund Fund Ctr Ctr $ 5,000 $ 406,876 $ 1,976,852 $ 582,678 $ 102,378 $ 995,921 $ 4,069,705 22,250 22,250 750 750 6,500 900 400 400 8,250 250 16,700 7,800 9,670 88,486 97,558 11,400 214,915 100,898 8,025 10,182 350 134,513 253,968 75,500 75,500 2,902,300 2,902,300 143,928 175,000 24,000 68,559 411,487 $ 3,180,876 $ 598,601 $ 2,021,105 $ 671,914 $ 284,436 $ 1,210,643 $ 7,967,575

162 | P a g e


General 7: Special Revenue Funds

Expenses Capital outlay Construction Depreciation Fuel and lubricants Interdepartment charges Interest Miscellaneous Other supplies, services and charges Personal services Repairs and maintenance Transfers out Utilities Total

City of Lee’s Summit Annual Budget FY14

Parks & Recreation Fund $ 4,000 (185,947)

Gamber Center

Legacy Park Summit Community Waves Ctr $ 26,380 $ 9,074

Cemetery Trust Fund

Harris Park Community Ctr

$ 32,883

56,525 188,194 3,350 628,694 1,847,597 346,689 457,000 48,460 $ 3,394,562 $

21,704 6,010 123,624 310,738 19,550

39,623 500 18,343 289,012 1,186,759 58,800

67,347 219,716 548,973 $ 1,839,133 $

17,909 515 137,398 365,635 31,719 5,985 68,500 636,735 $

Grand Total

1,950 12,225

15,279

250 19,532 147,345 415,824 72,878 633,440 16,684 8,495 25,643 5,100 53,235 282,074 $ 1,178,688

39,454 (185,947) 32,883 58,475 294,934 500 48,000 1,741,897 4,417,046 481,936 488,628 462,358 $ 7,880,164

163 | P a g e


General 7: Special Revenue Funds

Fund Parks & Recreation Gamber Center Legacy Park Community Ctr Summit Waves Cemetery Trust Fund Harris Park Community Ctr Total

City of Lee’s Summit Annual Budget FY14

Actuals FY11 2,935,304 341,838 1,488,725 607,541 226,124 1,295,805 6,895,337

Actuals FY12 2,982,562 369,021 1,666,174 625,532 266,815 1,268,494 7,178,598

Adopted FY13 3,144,429 391,561 1,890,168 655,752 238,436 1,379,690 7,700,036

Adopted FY14 3,394,562 548,973 1,644,558 636,735 282,074 1,178,688 7,685,590

Difference from FY13 Budget $ % 250,133 7% 157,412 29% -245,610 -15% -19,017 -3% 43,638 15% -201,002 -17% -14,446 0%

164 | P a g e


General 7: Special Revenue Funds

Fund Parks & Recreation Fund Gamber Center Legacy Park Community Ctr Summit Waves Cemetery Trust Fund Harris Park Community Ctr Total

City of Lee’s Summit Annual Budget FY14

Actual FY12 27.15 10.57 39.15 17.13 1 21.98 116.98

Actual FY13 26.15 10.57 39.55 17.73 1 21.98 116.98

Adopted FY14 26.15 10.05 39.26 17.73 1 21.99 116.18

Change From FY12 to FY13 0 -0.52 -0.29 0 0 0.01 -0.8

165 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

Parks and Recreation Fund Balance Summary

Fund

Actual

Budget

Projected Balance

Maintenance Balance

FY12

FY13

FY13

FY14

Gamber Ctr

202,981

245,581

242,550

292,179

Legacy Park Community Ctr

248,176

328,621

398,946

607,295

Harris Park Community Ctr Parks & Recreation

Aquatics

Cemetery

Park COP Debt Fund

173,723 1,164,780

1,778

1,123,591

1,164,400

230,708 1,165,697

38,861

1,152,606

1,649,662

158,854 1,235,137

8,843

1,167,184

1,397,831

190,809 1,595,458

58,095

1,173,886

1,509,073

Projected Balance FY14

Fund Balance Notes:

Fund Balance Policy-10% of budgeted operating expenditures (Goal $150,000)-Asset Replacement Goal 292,179 $250,000 Fund Balance Policy-10% of budgeted operating expenditures (Goal $150,000)-Asset Replacement Goal 580,915 $1,000,000

190,809 1,021,448

Fund Balance Policy-10% of budgeted operating expenditures (Goal $150,000)-Asset Replacement Goal $1,000,000 Minimum fund balance required by Budget Policy - $339,456 (FY14) **

Fund Balance Policy-10% of budgeted operating expenditures (Goal 44,021 $150,000)

1,169,546

1,509,073

Trust fund set up to sustain operating costs once Cemetery at capacity. Fund used to record sales tax proceeds and pay outstanding debt for Certificate of Participation. Cash is transferred to the Construction Fund for capital projects.

166 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14 PARKS AND RECREATION FUND

The Parks & Recreation fund is used to account for the maintenance of 28 municipal parks, which include recreational facilities for softball, baseball, soccer, tennis, picnics, walking/jogging, handball/racquetball, basketball and volleyball. Numerous playgrounds and all-purpose open space are also available to the citizens of Lee's Summit. The primary source of revenue is a 0.1630 cent property tax levied to support park operations. Five divisions are represented in the Parks fund including:

• •

Administration – this division provides leadership, coordination and support services including marketing, financial oversight, and overall support for the Parks and Recreation Board. Park Operations and Construction – this division provides maintenance of park grounds, equipment, buildings, special facilities, and construction and renovation of neighborhood parks. Neighborhood park planning and development services and construction are included in this program. City Grounds and Facilities Management – this program accounts for costs related to contracting with the City for turf and landscape maintenance of public buildings, medians, city parking lots, and islands. Legacy Park Management – this program provides maintenance for Legacy Park grounds, ball fields, equipment, concession buildings, pump house, lake and irrigation.

• Beautification Commission – this program accounts for costs associated with staff support and projects for the activities of the Beautification Commission. The Parks & Recreation fund is accounted for as Special Revenue funds and utilizes Generally Accepted Accounting Principles (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due.

167 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

168 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

169 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

170 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

171 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

172 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

173 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

GAMBER CENTER FUND

The Gamber Center is designed to meet the recreational needs of the 50+ community. The facility also serves the community at large and consists of a ballroom (banquet seating for 200), bistro, billiards room, dry craft room, wet craft room, fitness center, aerobics studio, classroom (seating 25), computer lab (seating 12), gift shop and full kitchen. The design of the facility allows for flexibility in programming to accommodate new trends and technology. Participants will also enjoy outdoor amenities including a gazebo, raised planting beds, a walking path with 9 pieces of fitness equipment, outdoor seating for the bistro, and a manicured lawn for outdoor activities. The fund is a special revenue fund and utilizes Generally Accepted Accounting Practice (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due.

174 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

175 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

176 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

177 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

178 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

179 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

180 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

SUMMIT WAVES AQUATIC CENTER FUND

Summit Waves Aquatic Park is open from Memorial Day weekend through Labor Day and is located in Harris Park. The community wide family aquatics center contains a 6 lane, 25 yard lap pool with 2 diving boards, a zero depth entry pool with large play feature designed for toddlers, a 900+ foot action river, 1 open flume slide that can be used as a body slide or can be used to ride a single or double inner tube, and a closed flume body slide. Participants will also enjoy amenities including shade structures, lounges, family changing rooms, men’s and women’s locker rooms and a food and beverage operation that will offer items such as value meals, candy, drinks and breakfast items.

The Aquatics fund is accounted for as Special Revenue funds and utilize Generally Accepted Accounting Principles (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due .

181 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

182 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

183 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

184 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

185 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

186 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14 LEGACY PARK COMMUNITY CENTER FUND

The Community Center at Legacy Park opened in December 2003 and is approximately 58,000 square feet. The facility offers a fitness area with various fitness equipment, elevated running track, gymnasium (2 basketball or volleyball courts), 2 racquetball courts, an aerobics/fitness room, a natatorium with various aquatic features, a child care area, catering kitchen and multi-purpose activity rooms. The Center offers single visit passes, annual memberships, and Flex (monthly installment) memberships. Also available is a Passport membership which allows reciprocal use of Gamber Center and Legacy Park Community Center. Other fee based programs such as swim lessons, massage therapy, instructional and recreational opportunities for the multigenerational population are also available. A teen summer day camp is also offered at this facility. The strategic financial goal is to attain 100% operational cost recovery for the facility. The facility is funded by user fees, facility rentals and memberships. The fund is a special revenue fund and utilizes Generally Accepted Accounting Practice (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due.

187 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

188 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

189 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

190 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

191 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

192 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

193 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

CEMETERY TRUST FUND

The Cemetery Trust Fund was established to account for plot, niche and monument sales and to provide funding for the perpetual care of the Lee’s Summit Historical Cemetery. The Parks and Recreation Department oversees and maintains the city cemeteries on behalf of the City of Lee's Summit.

The Cemetery Trust fund is accounted for as Special Revenue funds and utilize Generally Accepted Accounting Principles (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due.

194 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

195 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

196 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

197 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

198 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

Other Special Revenue Funds

199 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

200 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

201 | P a g e


General 7: Special Revenue Funds

City of Lee’s Summit Annual Budget FY14

202 | P a g e


Section 8: Capital Project Funds


8: Capital Project Funds General

City of Lee’s Summit Annual Budget FY14

CAPITAL IMPROVEMENTS OVERVIEW

A Capital Improvement Plan (CIP) is a major public infrastructure planning tool for many local governments. The CIP reflects the community’s assets, needs and goals, and is a statement of the City’s policies and projected financial ability to manage the physical development of the community. The development of a CIP matches information regarding planned public improvements with anticipated funding, and thus presents a systematic plan for providing the needed improvements within a prioritized framework.

The City’s Charter mandates the development and annual review of a capital improvements plan and estimated operating and maintenance costs of the proposed improvements. The plan is formally adopted each year by the Planning Commission as part of the Comprehensive Plan. This approach addresses legal requirements for public hearings on the location, nature and extent of all projects. All costs identified for the first year of the plan are included in the City’s Operating Budget, which is adopted by the Mayor and City Council, for the upcoming fiscal year.

The proposed five (5) year CIP for the City of Lee’s Summit sets the general schedule for which public improvements are proposed to be undertaken in that time frame. The CIP includes projects over $50,000 in total cost that are anticipated to be funded during the five-year period. Operating and maintenance expense information is provided for the first year of the plan when applicable. Annual maintenance programs, small projects and small planning studies, such as the street overlay program or system master plans, are typically included in the CIP as programs.

A CIP is not a static document, but rather a fluid document that can be changed as the infrastructure requirements change, development occurs, and funding opportunities become available. The remaining four (4) years of the five-year plan represent all projects that are currently proposed for future funding based on the revenue projections. As priorities, needs and revenues change, projects may be added to or removed from the CIP. Estimated expenses and revenue projections are reviewed annually and adjusted if necessary to account for growth, inflation and other economic conditions.

204 | P a g e


8: Capital Project Funds General

City of Lee’s Summit Annual Budget FY14

CAPITAL IMPROVEMENT PROCESS

DEFINITION A capital improvement is a necessary or desirable project that extends or improves infrastructure and enhances the City’s ability to provide safe and desirable services for the benefit of the community and the quality of life in Lee’s Summit. These projects directly affect the way citizens live, travel and conduct business within the community. IDENTIFICATION The need for capital improvements may be identified by an adopted infrastructure master plan, the desire to maintain certain levels and types of service provided in the community, by community groups, or by regulatory legislation. Projects are prioritized based on many factors including their impact on providing better city services, accommodating city growth, effect on maintenance and operation expenditures, and the overall health, safety and welfare of the citizens. CREATION The scope of a proposed project is often determined based on a preliminary study or recommendations from other city master plans. Once the project is identified a preliminary cost estimate and schedule for the design, right of way and easement acquisition, and construction of the project is prepared. These initial cost estimates are typically general in nature with considerable contingencies included. If the project is selected for inclusion in the CIP, the estimates and schedule are the basis of the initial project information.

CAPITAL IMPROVEMENTS PLAN IMPLEMENTATION

When a project on the CIP schedule is funded, it is assigned to a project manager who will assume oversight responsibilities. A number of steps are required before a project is complete. DESIGN The project manager will coordinate and participate in the selection process for an engineering or architectural design firm, as appropriate. Architectural and engineering services contracts, unlike commodities contracts, are awarded to firms strictly on the qualifications and expertise of the firm in the particular type of project. The project manager is responsible for negotiating a

205 | P a g e


8: Capital Project Funds General

City of Lee’s Summit Annual Budget FY14

detailed scope and fee for the design services with the selected consultant. Design for some projects may be completed by City staff or awarded to consultants through annual on-call contracts. The design process is typically divided into several phases: concept and/or preliminary design, right-of-way plans, right-of-way appraisal and acquisition, and final design. Plans and cost estimates are prepared, either by the consultant or City staff, for review at least at these project milestones. If state or federal funding is involved, plans and estimates are also provided to the appropriate agency for review. As more refined information on project scope and cost is developed, the CIP document is revised accordingly during the next annual update. Occasionally, projects may be deferred or deleted from the plan based on information gathered during the design process that indicates significant problems with pursuing the project. Typically, one or more public meetings are held for major projects that have significant impacts on property owners and the public to obtain feedback and comments from the community. A meeting is often held at the completion of preliminary plans in order to let residents abutting the project know how the design will affect their properties. Comments made at the meetings are considered by City staff and the design firm for inclusion in revised plans, if appropriate, prior to appraisals and property acquisition. Other meetings may be held before any design is started and just before construction begins. Right-of-way plans define the nature and extent of property required to complete a project. Property acquisition may be in the form of right-of-way, permanent easements or temporary construction easements. The City hires professional appraisers to determine fair market value of the acquisitions, which is the basis for initial offers to property owners. The City’s right-of-way agent and/or contract agents complete the negotiation and acquisition process for the projects. Once all property is acquired, final plans and specifications can be completed. During this time, any necessary relocation of private utilities (gas, phone, power) is also accomplished. Typically, all relocations are complete prior to bidding a capital project. ADVERTISEMENT, BID AND AWARD Capital projects are publicly advertised through the City’s Purchasing Division. City and consultant staff members evaluate all bids for completeness and correctness, and references for the low bidder are checked. Based on the review and references, the consultant or the City’s project manager makes a recommendation for award to the lowest and best bidder. The award of the construction contract is made by City Council. SCHEDULE The construction contract sets forth the required completion time for the project. Time is counted from the date of the “Notice to Proceed” to the point of substantial completion and final completion. The duration is determined by the design consultant and/or City staff based on the

206 | P a g e


City of Lee’s Summit Annual Budget FY14

8: Capital Project Funds General

scope of work, seasonal constraints, coordination with property owners, and impacts on the traveling public. The order and duration of specific tasks within the allotted contract time is typically determined by the contractor. The assessment of liquidated damages is included in construction contracts for failure to meet required completion dates. CONSTRUCTION ADMINISTRATION The City’s project manager for the design processor or a project manager from the construction management group is typically responsible for performing or coordinating project administration during construction. Such tasks generally include monitoring project progress, schedule and costs; coordinating and facilitating communications between the design consultant, inspections staff, contractor and City staff; negotiating and coordinating approval of changes in the project scope or cost; reviewing and approving regular progress payments; and reporting on the construction progress to City Council and the public through the City’s publications and website. Changes to the contract totaling up to five percent of the original bid price may be approved administratively by the appropriate Department Director. Changes that increase the cost in excess of that amount must be approved by the City Council. SUBSTANTIAL COMPLETION Substantial completion is defined as the time at which the project has progressed to the point where it is sufficiently complete that it can be utilized for the intended purpose. At this time, a comprehensive inspection is performed by City staff and the design consultant to create a list of all incorrect or outstanding items (a “punch list”) remaining to be completed or corrected. The punch list items and all other deficiencies must be completed before final acceptance of the project by the City, and final payment to the contractor. FINAL ACCEPTANCE Final acceptance is realized when the contractor has completed all work on the project, including punch list items, has provided the City with a maintenance bond, and has submitted all other close-out documents in accordance with the construction contract. The project manager is responsible for preparing a final project report and submitting it to city and department management staff as well as to City Council. Any unspent funds authorized for a project will be returned to the appropriate funding source for reallocation to future projects.

CAPITAL IMPROVEMENT PLAN FUNDING Revenue Sources

207 | P a g e


8: Capital Project Funds General

City of Lee’s Summit Annual Budget FY14

All funding sources that may be used for various capital improvements are reviewed each year. Much of the work to develop the CIP focuses on the balancing of available resources with the identified capital needs. Consideration must be given to factors such as annual revenue projections from various sources, restrictions on the uses of certain funds, legal limitations on debt capacity, and City policies relative to project funding. The following is a list of existing funding sources and definitions for each: TAXES

Property Tax- Revenue from the ad valorem tax levied on all real and personal property, based upon the assessed valuation established by the County Assessor on January 1st of each year. Real property assessed valuation is determined by applying the “market value” times the appropriate assessment ratios. As follows:

• • • •

Commercial/Industrial: 32% Residential: 19% Agricultural: 12% Personal Property assessed valuation is set at 33% of market value and is determined by the State Tax Commission.

Sales Tax- The City imposes a total sales tax of 2.25% (Capital Improvement: 0.50%, General fund: 1.0%, Parks and Recreation: 0.25%, Transportation: 0.50%) on all goods and commodities sold within the City limits with the exception of drugs and farm machinery. The tax is also levied on all vehicles registered by residents of the City, regardless of where those vehicles were purchased. Transportation tax is not levied on utilities and is earmarked specifically for use in funding transportation projects only. The State of Missouri receives the tax from the respective business and distributes the funds monthly to the City.

Parks & Recreation 1/4-Cent Sales Tax- Initially approved in November 1997 for 3/8-cent and renewed in February 2006 for ¼-cent, this revenue source is dedicated to Parks and Recreation improvements including completion of Legacy Park facilities, new park development, the Senior Center, and greenway development.

Transportation ½-Cent Sales Tax- Approved initially in the 1980s, this tax is available to pay for transportation and traffic infrastructure improvements and major maintenance, such as overlay and slurry seal, curb and gutter replacement, crack sealing and pavement marking.

208 | P a g e


8: Capital Project Funds General

City of Lee’s Summit Annual Budget FY14

This sales tax also provides funding for several other Public Works Programs including bridge rehabilitation, thoroughfare and traffic master plan studies, community bus services and the Neighborhood Traffic Safety Program.

Capital Improvement ½-Cent Sales Tax- Originally approved in November 1997, this tax has been used in conjunction with the Road Excise tax to fund road improvements related to the “10-year road plan” adopted in 1997. The sales tax was renewed in April 2007 with collection beginning in 2008 and ending in 2018. This renewal of the sales tax will fund a second “10-year road plan” comprising 6 major projects.

Road Excise Tax- Excise Tax is paid for development that generates new traffic in the City in the form of a license tax on building contractors. This revenue source is available for road improvements throughout the City that are required due to growth to at least some degree. The excise tax will continue to be used for the remaining projects from the first 10-year plan until it is complete.

Transportation Development Districts A geographic area may be designated to levy an additional sales or property tax assessment to pay for transportation related infrastructure improvements.

Tax Increment Financing Provides for the capture of 50% of the Economic Activity Taxes (Sales and Franchise) generated within the boundaries of a designated area to be used to finance infrastructure improvements. All of the incremental increases in real estate taxes are also captured from all taxing jurisdictions until the infrastructure is paid off.

BOND PROCEEDS

General Obligation (G.O.) Bonds- Bonds which are backed by the full faith and credit of the City and require either a 2/3rds or 4/7ths voter approval. Limitations for bonding capacity are set by state statute.

209 | P a g e


8: Capital Project Funds General

City of Lee’s Summit Annual Budget FY14

Revenue Bonds- Bonds which are backed by the fees and charges of a business-like government function, payable only from a specific source of revenue. Simple majority voter approval required. Limitations for bonding capacity are not set by state statute but rather the entity’s ability to repay the debt.

Certificates of Participation- Bonds which are backed by general revenues or fees and charges of a government. No voter approval is required. Limitations for bonding capacity are determined by the market and the entity’s ability to repay the debt.

Special Obligation Bonds- Bonds which are backed by general revenues or fees and charges of a government. No voter approval is required. Limitations for bonding capacity are determined by the market and the entity’s ability to repay.

GRANT FUNDING Grants may be received from federal, state or county governments. Grants are typically available for transportation, airport improvements, parks, and public safety equipment. The City also receives community development block grants (CDBG) for use in low-to-moderate income areas within the community. Equipment purchases and CDBG projects are not included in the CIP.

FEES AND CHARGES Fees for direct receipt of public service by the parties who benefit from the service

Landfill Tipping and Yard Waste Disposal Fees- Collected by Public Works Solid Waste Division for disposal of refuse or yard waste at the Resource Recovery Park.

Parks and Recreation Activity Fees- Collected by Parks & Recreation Department for participation in various sports and recreation programs, aquatic instruction, and the Camp Summit and Club Summit daycare programs at the Recreation Center.

210 | P a g e


City of Lee’s Summit Annual Budget FY14

8: Capital Project Funds General

Recreation Memberships- Membership fees collected for the Lee’s Summit Pool and the Legacy Park Community Center.

Water Sales- Charges for supplying water to residential, commercial, industrial and wholesale customers.

Sewer Charges- Charges for providing wastewater collection and disposal services to residential, commercial and industrial customers.

Sewer Tap- The charge for a new sanitary sewer connection based on the number of drains in a structure and assessed at the time of building permit issuance.

Water Taps- The charge for a new water service connection based on the size of water meter required. Also included in the water tap fee is an amount which is intended to provide capital for the development of the City’s water transmission capacity.

PRIVATE FUNDING Amounts paid by developers, generally for specific infrastructure improvements, pursuant to development agreements between the City and those developers.

CAPITAL IMPROVEMENT PLAN COSTS

The 2013-2017 Capital Improvement Plan has been divided into eight major categories, plus the Public Works Programs. The total estimated cost of all projects included in the five-year plan is $154,915,000. A summary of the costs by category is summarized below. 2014-2018 CIP SUMMARY (Costs in $1000s)

211 | P a g e


City of Lee’s Summit Annual Budget FY14

8: Capital Project Funds General

2014 – 2018 CIP Summary Category

Prior Yrs

% of Total

2014-18

% of Total

PW & WU Programs

N/A

N/A

33,024

16.4

Airport

9,458

9.1

29,696

14.7

Bridges, Streets, Signals

59,462

57.1

71,180

35.3

Facilities

5,970

5.7

3,290

1.6

Parks and Recreation

1,783

1.7

2,481

1.2

Solid Waste

0

0.0

1,090

0.6

Stormwater Sanitary Sewers Water

15,400 7,234 4,846

14.8 6.9 4.7

0 32,599 28,248

0.0 16.2 14.0

TOTAL

104,153

100.0

201,608

100.0

A full list of Capital Improvement Projects can be found using the website below:

http://www.cityofls.net/Development/Comprehensive-Plan/Capital-Improvements-Plan(CIP).aspx

212 | P a g e


8: Capital Project Funds General

City of Lee’s Summit Annual Budget FY14

Capital Project Funds FY13 Budget *Water & Sewer Construction 15,335,873 Bridges, Streets, Signals 15,889,923 Facilities 340,000 Capital Equipment Replaceme 1,178,016 Airport Parks Construction 504,000 33,247,812 Total

FY14 Proposed 21,305,000 31,169,000 2,559,000 803,500 4,579,000 1,043,000 61,458,500

213 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

214 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

215 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

216 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

217 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14 CIP IMPACT ON OPERATING BUDGET

As part of the Capital Improvement Plan, the impact of each project on the City’s operating budget is identified. As capital improvement projects are completed, operation and maintenance of these facilities must be absorbed into the appropriate department operating budget, which provides ongoing services to citizens. These operating costs, which may include salaries, equipment, regular maintenance, and repairs, are adjusted annually to accommodate growth and inflation in maintaining or improving service levels. In some cases, elimination of high-maintenance facilities may also reduce these operating costs. It is the City of Lee’s Summit’s philosophy that new projects should not be constructed if operating revenues are unavailable to cover the operating costs. These must be funded with recurring (ongoing) revenues. As a result, the availability of recurring revenues must be considered in the decision to include projects in the plan. The 2014-2018 CIP totals $307,773,875 (including funding from prior years), up from $256,367,000 in the 2013-2017 plan. The increase in the total is due to a combination of the addition of several large projects n o t previously included and fewer projects as a result of projected reductions in revenues in several areas due to current economic conditions. Significant changes include: Completed Projects

• • • • • • •

Windemere landscaping, Williams Grant Part and Wadsworth Park. $398,945.35 Stormwater Bond: Patterson, Ash and Swann. $489,703.45 Prairie Lee Lake Low Pressure Sanitary sewer System: $577,162.30 Curb Bond Phase 3: 3,515,275.50 FY13 Overlay: $2,086,217.11 FY13 Micro-surface: $1,239,067.33 FY13 Curb Replacement: $1,423,450.00

The following pages display a few detailed examples of the CIP’s impact on the operating budget.

218 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

219 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

220 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

221 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

222 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

223 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

224 | P a g e


General 8: Capital Project Funds

City of Lee’s Summit Annual Budget FY14

225 | P a g e


Section 9: Proprietary Funds


City of Lee’s Summit Annual Budget FY14

9: Proprietary Funds General

PROPRIETARY FUNDS

Enterprise Funds are used to account for operations that provide a service to the general public and are financed primarily by a user charge for the provision of such service. The city operates four enterprises: the Water/Sewer Utility, the Municipal Airport, the Sanitary Landfill, and the Recreation Center. Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. The City has seven Internal Service Funds. The Central Vehicle Maintenance Fund and Management Information Systems Funds were established to provide replacement vehicles and data processing equipment and the related maintenance services to the various City departments. Unemployment Insurance Fund, Insurance Reserve Trust Fund, Short Term Disability, and Worker’s Compensation Self Insurance Fund were established to account for the City provided employee benefits. New in Fiscal Year 2007-2008 is the Central Building Services Fund. This fund will provide funding for capital maintenance projects. The City utilizes Generally Accepted Accounting Practice (GAAP) based budgeting for these funds. This requires that the full accrual method be used to record revenues and expenditures. This presentation records long-term assets and liabilities, and recognizes revenues and expenses when transactions occur.

227 | P a g e


9: Proprietary Funds General

City of Lee’s Summit Annual Budget FY14

Enterprise Funds

228 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

Water Utilities

The Water Utilities Department serves over 35,000 customers. The total water supply has increased to 27.5 million gallons per day (MGD) with the completion of the third phase of the Jackson Cass Transmission Main with Kansas City. Lee’s Summit has contractual supply of 21 MGD from the City of Kansas City, Missouri and 7.5 MGD from the City of Independence, Missouri. Water demands increased considerably in the summer of 2012 due to hot and dry weather conditions. Water restrictions were enacted due to the failure of one of the major connections with Kansas City in July. Customer cooperation to alternate irrigation schedules allowed for storage levels to reach stable conditions and allowed for restrictions to be lifted. The City of Lee’s Summit and Little Blue Valley Sewer District have a contractual agreement for ongoing treatment and pumping within the Little Blue Valley drainage basin to accommodate existing and future customers within Lee's Summit. In order to maximize capacity of the sanitary sewer system, Water Utilities continues to focus on Inflow and Infiltration (I&I) reduction programs. The Water Utilities Department completed a Strategic Plan for the Utility in December of 2011, which was the result of a comprehensive assessment and strategic planning process involving the Utility’s stakeholders. The Plan specifically addressed a need to improve customer understanding and relations; to develop a program for the renewal of existing aged infrastructure; to establish appropriate policies to address financial challenges; and to proactively address long-term needs to ensure a sustainable utility. The Plan will also position the utility to be responsive to the impact of regulatory and economic factors that are affecting the utility today and in for the foreseeable future. In 2012 the Utility began implementing the Plan’s recommendations; the establishment of the Water Utilities Advisory Board to ensure customer input on the direction of the Utility; an online customer account system that offers ebilling and more details about their monthly bills; a new position to focus on community relations; and a financial plan including rate schedule to support a sustainable utility.

229 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

230 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

231 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

232 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

233 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

234 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

235 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

236 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

SOLID WASTE MANAGEMENT FUND The Solid Waste Management Fund accounts for all revenues and expenses related to the City's Resource Recovery Park. The Resource Recovery Park, which operates on a six-day per week schedule, encompasses an area of approximately 275 acres including a 80 acre sanitary landfill, a four acre yard waste composting facility, a one acre drop-off recycling center, and a Household Hazardous Waste disposal area. An additional 80 acres of the site is set aside as a soil borrow area while the remainder of the property serves as a buffer from the abutting property owners. A Solid Waste Superintendent, Site Supervisor, ten full time employees, and two part-time employees staff the Solid Waste Division of the Public Works Department. Staff is responsible for day to day operations for municipal solid waste disposal, composting, brush collection and drop-off recycling. Household hazardous waste facilities and compost-loading facilities also enhance customer service. Staff must continue regular operations during all weather conditions; all possible efforts are expended to ease access to the different facilities. Customer service receives high priority in the Solid Waste Division. Customer awareness is provided through the distribution of recycling information and instructions for safe alternatives for disposal of hazardous household waste, recycling, solid waste and yard waste. Tipping fees for municipal solid waste, yard waste, and the sale of compost and mulch, generates fund revenue. Governed by state law, as well as City ordinance, yard waste cannot be placed in the sanitary landfill. Although no fees are charged for dropping off recyclables at the recycling center, the fund does generate limited revenue from the sale of specific recyclable items. This facility is subsidized from the Solid Waste Fund. A general and administrative fee is paid to the City's General Fund to recover indirect expenses incurred by General Fund staff, including the Public Works Engineering, Finance, Human Resources and Law Departments. The fee is calculated based upon General Fund Department usage. In accordance with GAAP based budgeting, the Solid Waste Management Fund is reported as an enterprise fund. The non-cash expense of depreciation/depletion is recorded to show how much of the facility has been consumed. Although capital outlay and bond principal redemption is a reallocation of current assets, amounts for these appear in this budget for informational and cash flow purposes only. The plan approved by the voters and City Council in 1994 provided for a 20-year life expectancy at 350 tons per day while maintaining suitable revenues sufficient to offset expenses. The sanitary landfill complies with applicable Federal Environmental Protection Agency and Missouri Department of Natural Resources regulations relating to closure/post closure.

237 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

238 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

239 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

240 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

241 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14 AIRPORT FUND

The Airport Operating Fund is an enterprise fund that accounts for all revenues and expenses related to the municipally owned airport. The Lee's Summit Municipal Airport is designated by the Federal Aviation Administration (FAA) as a reliever airport for the Kansas City metropolitan area and as such is designed to reduce congestion at larger air carrier airports by providing general aviation pilots with alternate landing facilities. It is further classified as a general aviation utility airport serving planes with gross weights of less than 30,000 lbs. and landing speeds less than 121 knots. The airport is equipped with two runways: a 4,016 ft North/South (18-36), and a 3,800 ft Crosswind (11-29). Following recommendation in the 2010 adopted Airport Business Plan the City has initiated an engineering contract for services to provide the design work for the first phase of development involving the grading for a 1,285-foot extension to the south. This work is being performed with the assistance of federal and state aviation grants. In conjunction with the completed Preliminary Development Plan (PDP) for the eastside terminal area city staff has continued to work with several parties interested in developing facilities in this area. Airport fund revenues are generated through the sale of aviation fuel, navigational charts and pilot supplies, the leasing of 75 tie-down spaces, 40 open T-hangar spaces and 113 enclosed hangar spaces and six ground leases for privately owned hangars. Outstanding debt consists of Certificates of Participation (COP’s) and an inter-fund loan from the General Fund. The COP’s were issued in March 2001 in the amount of $955,000 for construction of four new hangar buildings and related site improvements. The inter-fund loan was used to refund a prior debt issue that was at significantly higher interest rates. This inter-fund loan is being repaid on a monthly basis over the next 20 years at the rate that the city would earn on its other investments. The Airport Fund is accounted for as enterprise fund and utilizes Generally Accepted Accounting Principles (GAAP) based budgeting. This requires that the accrual basis of accounting method is used to record revenues and expenditures. Although capital outlay and bond principal redemption is a reallocation of current assets, amounts for these transactions appear in this budget for informational and cash flow purposes only.

242 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

243 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

244 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

245 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

246 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

247 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

248 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

HARRIS PARK COMMUNITY CENTER FUND

The Harris Park Community Center, with renovated additions, is now approximately 30,000 square foot. The recreation facility provides indoor recreational opportunities for all ages through a day camp for school age children held in the summer, holiday breaks from school and scheduled school days off, recreational athletic leagues, programs, instructional classes, special events, and rentals. The summer recreational day camp is for ages 5-11 and provides a wide variety of activities such as skating, bowling, field trips, guest speakers, swimming, etc. The Athletics program provides opportunities for youth such as volleyball, basketball and soccer leagues. Adults, male, female and coed, are served as well at the HPCC for basketball, volleyball, dodge ball or at the newly renovated Hartman Park softball field complex. Instructional classes provide a wide variety of educational and recreational opportunities for pre-school through adults that focus on basic instruction for the individual or family participation. The Special Events group increases cultural awareness by hosting a summer concert series to the community of Lee’s Summit free of charge. Staff from the Parks Department also serves as a liaison to the Arts Council working with a citizen group to research and provide cultural arts activities for the City.

The fund is a special revenue fund and utilizes Generally Accepted Accounting Practice (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due.

249 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

250 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

251 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

252 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

253 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

254 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

Internal Service Funds

255 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14 INFORMATION TECHNOLOGY SERVICES

Information Technology Services’ (ITS) mission is to work in partnership with customers to leverage the use of information technologies to meet business challenges and to foster customer self-sufficiency in using those technologies while providing the following:

• •

Faster, easier, more cost-effective and more accurate information and service to the public by automating city processes and by empowering city employees with office automation tools and technology. Focused customer-driven solutions, coordinated information technology planning, project management methodology, cost-effective tools and timely technical services. Business and support services that empower and support our customers in the accomplishment of their missions.

Help Desk – Centralized and coordinated support is delivered via the ITS Help Desk. The Help Desk provides assistance with hardware, software, and phone systems to city staff. This group monitors the city computer environment and dispatches ITS staff to critical system and network events. Coordinates orders for equipment, manages employee computer system access, and provides internal computer training sessions. Network and Desktop Computer Operations – The city network has dedicated connections to 22 city facilities via fiber, a high speed wireless network and leased lines. Remote communication is provided for staff to connect externally via the Internet, as well as outbound access to the Internet for web and email, Jackson County system access and public safety networks (City of Kansas City, State of Missouri and NCIC). The wireless network has been expanded to laptops utilizing leased wireless cards for management team, public safety and other critical laptops utilized by city staff. The ITS supports and maintains network devices as well as the infrastructure of copper and fiber cables, circuits, hubs, routers, bridges and switches necessary to provide communications between these locations. Technology Planning and Internal Consulting – ITS staff works with departments to assess, define and identify needs and research, and develop and implement solutions to meet those demands. ITS Services Coordinators are assigned as a resource for the coordination of technical support services within each department. The coordinator assists with effectively and efficiently navigating ITS related processes and services and is the departments advocate in escalating service needs and evaluating new technology requests to meet business process needs. ITS Services Coordinator are knowledgeable about department’s unique business processes, strategic goals and objectives, and technology needs – and are empowered to provide assistance needed to succeed in technology-assisted endeavors. Applications Administration - ITS provides administration and end user support for all applications within the city. This group manages over 130 desktop, network, and AS/400 software products are used by the city departments. ITS provides the design, installation, configuration, vendor coordination, end user training and support, installation of upgrade, development of interfaces as required, and 256 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

application troubleshooting. Application Administrators also serve as liaisons between end user and vendor by bridging the gap between technology and business process. Project Management - Project Management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. ITS developed and uses a defined Project Management Process to manage all project activities including: clearly defining the project’s scope, schedule, & cost; devising a solution to meet the requirements, including all people, process, technology, & support aspects; configuring or creating the desired solution; testing the solution and ensuring readiness for implementation; and implementing the solution and any required process changes. Project managers are responsible for ensuring successful execution of the process by controlling issues and risks, communicating project goals and status, and directing internal and external resources in executing tasks on the project timeline. Geographic Information Systems Administration - As the central coordinator of the city Geographic Information System (GIS), the ITS team provides management of the database, map layers, software and related components. ITS defines standards for GIS data and fulfills internal and external requests for data by providing maps and reports. GIS staff maintains the central GIS data to ensure maps are updated with accurate and timely information. The GIS staff continues to advance the integration of maps into city business to better support daily operations and decision making processes. Communications System Administration – Communication group is responsibility for supporting the phone and voice mail systems. The system includes over 600 phone voice/data lines and related equipment. These responsibilities include coordinating all phone related moves, additions and changes. In addition this group monitors and manages the phone related hardware and software located through city facilities. Communications also includes the email and calendar system utilized by employees to communicate and organize meetings with internal and external contacts. This includes the archiving of email communications and the filtering of unwanted spam emails. In addition this group manages the integration of mobile smart phones to provide city management instant access to email and calendars. Audio/Visual Services – The Local Government Access Channel broadcasted on AT&T, Comcast and Time Warner is managed by ITS. The channel provides information concerning local government activities, services and policies to the citizens of Lee’s Summit. The channel increases the public awareness of the activities of the legislative and administrative bodies of city government and other governmental entities. The channel is also used to facilitate emergency information to the general public. In addition the Audio Visual technology utilized throughout city facilities for meetings, digital signage, security and video production is supported by this central group. Depreciation - In accordance with GAAP-based budgeting, the ITS Fund includes a charge for the noncash depreciation expense to better match how much of the assets have been depreciated in a particular year. Although the capital outlay and bond principal redemption is a reallocation of current assets, an amount for these appear in this budget for informational and cash flow purposes only.

257 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

258 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

259 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

260 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

261 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

262 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

263 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

264 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

FLEET OPERATIONS FUND The Fleet Operations Fund is an Internal Service Fund. Internal Service Funds are used to account for the financing on cost-reimbursement basis of goods or services provided by one department to other departments within the same governmental organization. The Fleet Operations Fund is comprised of two parts, first the Vehicle Replacement Fund (VERP) which provides motor vehicle fleet replacement services to the various City departments. All City motor vehicles are now owned by this fund. The departments then leases or rent their vehicles at a rate that will provide funds for the replacement of that particular piece of equipment at a scheduled future date. By charging a yearly rate with a technology multiplier, over the life of the equipment, this system enables the City to replace vehicles within efficient lifecycle time frame and not just when funds are available. This will provide all Departments with safe and efficient vehicles throughout the fiscal year while maintaining a steady yearly payment at much lower rates than direct replacement cost. The fund also allows for the ability to capture new technology allowing for lower fuel cost and reduced emissions output. The second part of the Fleet Operations Fund is the Overhead, this fund is comprised of cost for the daily operation which provides twenty four hour service to all using departments, Fleet Operations provides all maintenance and repairs to over four hundred pieces of equipment, and our mission is to provide the best service and staff by partnering with departments and vendors to effectively monitor and ensure the most cost effective repair and replacement of vehicles and equipment. With effectively monitoring repairs and maintenance schedules the Fleet Division is committed to providing the most cost effective service while recognizing the value of the ever changing field and capitalizing on changing technology. The overhead fund is provided by charging a weighted percentage of operational overhead costs based on a three year average of the work order hours generated by the using department. The established maintenance program has also yielded longer useful life and higher resale values.

265 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

266 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

267 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

268 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

269 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

270 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14 CENTRAL BUILDING SERVICES

Central Building Services (CBS) is an internal services fund comprised of five service functions: Capital Project Management Services, Building Maintenance Services, Custodial Services, Utilities and General Services including the Building Equipment Replacement Program (BERP). The City Architect manages CBS. Capital Project Management Services focuses on new building project development such as the new Indoor Firing Range/Training Facility for the Police Department, as well as building or site renovation projects such as the renovation of the Police Department Detention Facility. The City Architect dedicates 75% of his time to provide design and construction oversight, while assisting the responsible department’s project team from concept through completion. The Building Maintenance Services staff includes 25% of the City Architects time as well as 2.25 FTEs. One staff member is a heating, ventilation and air conditioning (HVAC) technician. The services provided include routine maintenance, scheduled and unscheduled maintenance, repairs and general upkeep of facilities throughout the City. Specifically, they are responsible for maintaining City Hall, City Hall Parking Garage, all City fire stations, Animal Control, Public Works Maintenance Facility, Arnold Hall, Amtrak Station and downtown restrooms. Most maintenance related on-call contracts are administered as part of the services provided and includes elevator inspections, fire alarm inspections, window washing and carpet cleaning. Duty hours are from 6:30 AM to 3:30 PM, Monday through Friday. The Custodial Services staff includes 5.5 FTEs. The services typically include custodial and janitorial duties including floor care, trash disposal, recycling and detail cleaning of staff offices, restrooms and public spaces. Outside duties include snow and trash removal. 3 FTEs are assigned to City Hall/Parking Garage who work 3rd shift hours from 11:00 PM to 7:30 AM, Sunday night through Thursday night. 1 FTE is also assigned to City Hall/Parking Garage and 1 FTE is assigned to the Public Works Maintenance Facility and Animal Control working from 9:00 AM to 5:30 PM, Monday through Friday. 0.5 FTE is assigned to Fire Headquarters and the Municipal Court and works from 5:00AM to 9:00 AM. The Utilities and General Services program includes budget administration of all utilities for City Hall and Parking Garage. Specifically, natural gas, electricity, water/sewer and trash disposal is included. This program also administers the landscaping Memo of Understandings(MOU) for City Hall, Public Works Maintenance Facility and miscellaneous facilities. The Building and Equipment Replacement Program (BERP) collects and administers individual department BERP contributions. As replacement projects are scheduled for implementation, the City Architect will assist with procuring bids and completing the work. The City Architect will also perform facility inspections on an annual basis to evaluate BERP components.

271 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

272 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

273 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

274 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

275 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

276 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

277 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

278 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

279 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

280 | P a g e


General Funds 9: Proprietary

City of Lee’s Summit Annual Budget FY14

281 | P a g e


Section 10: Debt Service Funds


City of Lee’s Summit Annual Budget FY14

10: Debt Service Funds General

DEBT SERVICE FUNDS The city utilizes three funds to record the receipt and disbursement of monies used to repay principal and interest charges on city issued debt. The following are the three funds used to record this activity: General Obligation Bonds, Northeast Tax Increment Financing (TIF) District Infrastructure Improvement Bonds, and Park Certificate of Participation (COP) Debt Fund. The General Obligation Debt Service Fund is used to account for the annual retirement of bonds issued from 2003 through 2010. Expenditures from this fund include the payment of interest and fiscal agent charges plus the scheduled repayment of the principal balance. The ad valorem tax on real and personal property provides the primary source of revenue to make these semi annual payments. Interest income on investments of the reserve amounts provides the remainder of revenue. The Park COP Debt Service Fund was established to account for the issuance of COPs related to Legacy Park, the Greenway Project, and the Senior Center. This fund receives the revenues generated by the one-fourth cent "Parks & Soils" sales tax. The Northeast Tax Increment Financing District Fund is where incremental property taxes (related to the improvements made on the property after the TIF district was formed) received on the designated parcels within the TIF district are used to make principal and interest payments on the city’s debt issued to construct streets and sanitary sewers in the district. The basis of accounting is the same for both budgeting and GAAP reporting purposes. This requires that the modified accrual method bases, with the revenues being recorded when measurable and available, and expenditures being recorded when the liability is incurred. Revenues susceptible to accrual are sales taxes, economic activity taxes, property taxes and interest revenue.

283 | P a g e


10: Debt Service Funds General

City of Lee’s Summit Annual Budget FY14

284 | P a g e


10: Debt Service Funds General

City of Lee’s Summit Annual Budget FY14

285 | P a g e


10:General Debt Service Funds

City of Lee’s Summit Annual Budget FY14

286 | P a g e


10:General Debt Service Funds

City of Lee’s Summit Annual Budget FY14

287 | P a g e


10:General Debt Service Funds

City of Lee’s Summit Annual Budget FY14

288 | P a g e


Appendix


City of Lee’s Summit Annual Budget FY14

General Appendix Accrual Accounting: A method of accounting that recognizes the financial effect of transactions, events and inters fund activities when they occur, regardless of the timing of related cash flows.

statements and assembling supporting documents for review by outside auditors. Auditing: Post-Audit: Posting audit adjustments and preparing the annual financial report.

Amortization: 1) A reduction of debt by means of periodic payments sufficient to meet current interest and liquidate the debt at maturity. 2) Provision for the extinguishment of a debt by means of a debt service fund. 3) Accounting for expenses or charges as they apply rather than as they are paid.

Audit Report: The report prepared by an auditor covering the audit or investigation of an entity’s financial position for a given period of time. As a general rule, the report should include a) a statement of the scope of the audit; b) explanatory comments concerning exceptions from generally accepted auditing standards; c) opinions; d) explanatory comments concerning verification procedures; e) financial statements and schedules; and f) statistical tables, supplementary comments and recommendations. The auditor’s signature follows item c) or d).

Arbitrage: Arbitrage is the difference (profit) earned from investing low- yielding tax-exempt bond proceeds in higher yielding taxable securities. Assessments: Assessments are charges in the nature of taxes upon property owners to pay the costs of facilities or improvements that benefit the property owned. Payment of the amount assessed (together with interest if not paid upon assessment) is secured by a direct fixed lien on the property. The assessed payments are either used directly to pay the costs of the facilities or improvements or, if paid over time, are used to repay bonds issued to finance such costs. “Special assessment” financing proceeds are used for improvements relating to the property, such as sidewalks, streets, gutters, sewers and water systems. Assessed Valuation or [AV]: The valuation placed on real estate or other property by a government for the purpose of levying taxes. Auditing: entries,

Pre-Audit: Posting year-end closing preparing preliminary financial

Authority: A governmental unit or public agency created to perform a single function or a restricted group of related activities. Usually such units are financed from service charges, fees and tolls, but in instances they also have taxing powers. An authority may be completely independent of other governmental units, or in some cases it may be partially dependent upon other governments for its creation, its financing or the exercise of certain powers. Balanced Budget: Annual financial plan in which expenses do not exceed revenues. Bond Counsel: Legal firm hired to advise the Issuer regarding the legal and tax assurance to the bond purchaser that the bond was legally issued and is aspects of the sale. Bond counsel writes the legal opinion for the bond issue. This lawyer, in theory, represents the ultimate bond purchaser. The Bond opinion provides tax-exempt. Generally responsible for producing the legal documents required for the sale.

290 | P a g e


General Appendix Bond Election or Bond Referendum: A process whereby the qualified voters of a governmental unit are given the opportunity to approve or disapprove a proposed issue of municipal securities. An election is most commonly required in connection with general obligation bonds. Requirements for voter approval may be imposed by constitution, statute, or local ordinance. Bond Fiscal Year: The 12-month accounting period, established under some bond contracts, used in connection with and issue of municipal securities. Principal and interest payments are scheduled in accordance with the bond fiscal year. The bond fiscal year may not necessarily coincide with the issuing agency’s own fiscal year, and may be established in order to take full advantage of the scheduled cash flow of projected pledged revenues. (See also Fiscal Year). Bond Proceeds: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These monies are used to finance the project or purposed for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract. Budget (Operation): A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. The term “budget” is used in tow senses in practice. Sometimes it designates the financial plan presented to the appropriating body for adoption and sometimes the plan finally approved by that body. It is usually necessary to specify whether the budget under consideration

City of Lee’s Summit Annual Budget FY14

is preliminary and tentative or whether it has been approved by the appropriating body. Callable Bond: A bond which the issuer is permitted or required to redeem before the stated maturity date at a specified price, usually at or above par, by giving notice of redemption in a manner specified in the bond contract. Call Date: The date on which a bond may be redeemed before maturity at the option of the Issuer. Call Feature (Redemption Feature): Enables the Issuer to pay off “redeem” a bond prior to its maturity date. The “call date” is the earliest date the bond may be redeemed “called”. Usually a premium is paid for the earliest call dates. Capital Assets: Assets of significant value and having a useful life of several years. Capital Assets are also called Fixed Assets. Capital Improvement Program [CIP]: A plan of proposed capital expenditures and the means of financing them. The capital budget is usually adopted as part of the complete annual budget which includes both operations and capital outlays. The capital budgets should be based on a capital improvement program [CIP]. Capital Outlays: Expenditures for the acquisition of capital assets. Capital Projects: Projects that purchase or construct capital assets. Typically a capital project encompasses a purchase of land and/or the construction of a building or facility.

291 | P a g e


General Appendix Cash Basis: The method of accounting under which revenues are recorded when received and expenditures are recorded when paid. Cash-Flow Budget (Cash Budget): A projection or the cash receipts and disbursements anticipated during given period. Typically, this projection covers a year and is broken down into separate projections for each month, week and/or day during the year. Cash-Flow Financing: A financing in which the proceeds of the issue are used to pay current expenses of the issuer when the issuer’s current income is temporarily insufficient for that purpose. Also, sometimes called TRANS, TANS, or RANS (tax and revenue anticipation notes). The issue is customarily scheduled to be repaid when current income exceeds current expenses. The issue typically has a term of one year or less.

City of Lee’s Summit Annual Budget FY14

the municipality/agency issuing the certificates have maturities and are paid in a manner parallel to the process involved in the execution and administration of bonds. Competitive Bid or Competitive Bidding: A method of submitting proposals to purchase a new issue of bonds by which the bonds are awarded to the underwriting syndicate presenting the best bid according to stipulated criteria set forth in the notice of sale. Cost Accounting: Accounting which assembles and records all costs incurred to carry out a particular activity or to deliver a particular service. Costs of Issuance: The expenses associated with the sale of new issue of municipal securities, including such items as underwriter’s spread, printing, legal fees and rating costs.

Cash Management: Tracking and forecasting cash flow, and working with investment personnel to develop an investment plan. Maintaining cash accounts and controlling their disposition. Coordinating and controlling bank accounts.

Covenant or Bond Covenant: The issuer’s enforceable promise to do or refrain from doing some act. With respect to municipal bonds, covenants are generally stated in the bond contract.

Certificate of Deposit or CD: A negotiable or nonnegotiable receipt for moneys deposited in a bank or other financial institution for a specified period at a specified rate of interest.

Debt: An obligation resulting from the borrowing of money or from the purchase of goods and services. Debt of governmental units include bonds, time warrants, notes, and floating debt.

Certificate of Participation [COP]: A certificate showing participation through ownership of a “share” of lease payments or lease-purchase agreement. Usually made between a municipality and an equipment vendor. While these certificates are similar to bonds, they are secured solely by the lease or rental revenues accruing to

Debt Limit: The maximum amount of debt which an issuer of municipal securities is permitted to uncurl under constitutional, statutory or charter provisions. The limitation is usually a percentage of assessed valuation and may be fixed upon either gross or net debt.

292 | P a g e


City of Lee’s Summit Annual Budget FY14

General Appendix Debt Ratios: Comparative statistics showing the relationship between the issuer’s outstanding debt and such factors as its tax base, income or population. Such ratios are often used in the process of determining credit quality of an issue, especially in the case of general obligation bonds. Debt Service: The amount of money necessary to pay interest on an outstanding debt, the serial meteorites of principal for serial bonds and the required contributions to an amortization of sinking fund for term bonds. Debt Service Fund: A fund established to account for the payment of interest and principal on all general obligation debt. Debt Service Schedule: A table listing the annual payments necessary to meet debt service requirements over the period of time the bonds are to be outstanding. Defeasance: Termination of the rights and interests of the bondholders and of their lien on the pledged revenues in accordance with the terms of the bond contract for the prior issue of bonds. Defeasance usually occurs in connection with the refunding of an outstanding issue before the final payment, or provision for future payment, of principal and interest on a prior issue. Delinquent Taxes: Taxes remaining unpaid on and after the date on which a penalty for nonpayment is attached. Depreciation: capital assets deterioration, inadequacy or

1) Expiration of the service life of attributable to wear and tare, action of the physical elements, obsolescence. 2) That portion of

the cost of a capital asset that is charged as an expense during a particular period. Direct Debt: The debt for which the issuing unit has sole responsibility. Disbursements: Recording accounts payable, reviewing invoices and supporting documents, and making payments to vendors. Encumbrances: Obligations in the form of purchase orders, contracts or salary commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. Enterprise Activity: A revenue- generating project or business which supplies funds necessary to pay debt service or bonds issued to finance the facility. The debts of such projects are selfliquidating when the projects earn sufficient moneys to cover all debt service and other requirements imposed under the bond contract. Enterprise Debt: Debt which is to be retired primarily from the earnings of publicly owned and operated enterprises. Enterprise Fund Accounting: Accounting used for government operations that are financed and operated in a manner similar to business enterprises and for which preparation of an income statement is desirable. Expenditures: Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. where accounts are kept on a cash basis,

293 | P a g e


General Appendix expenditures are recognized only when the cash payments for the above purposed are made. Expense: Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges. Feasibility Study: A report of the financial practicality of a proposed project and financing thereof, which may include estimated of revenues that will be generated and a revenue of the physical operating, economic or engineering aspects of the proposed project. Federal National Mortgage Association (FNMA) or Fannie Mae): One of the two presently existing corporations which formerly comprised the FNMA. As it currently exists, FNMA is a government- sponsored private corporation authorized to purchase and sell mortgages and to otherwise facilitate the orderly operation of a secondary market for home mortgages. Financial Advisor or Consultant: With respect to a new issue of municipal bonds, a consultant who advises the issuer on matters pertinent to the issue, such as structure, timing, marketing, fairness of pricing, terms and bond ratings. Can provide cash management services and can serve as an agent for the issuer during the pricing of bonds during a negotiated sale. Fiscal Agent: An agent (usually and incorporated bank or trust company) designated by a government to act for it in any of several capacities in the sale, administration and payment of bonds and coupons. Fiscal Policy: a government’s policy relating to budgeting of expenditures and revenues.

City of Lee’s Summit Annual Budget FY14

Fiscal Year: A 12-month period of time to which the annual budget applies and at the end of which a governmental unit determines its financial position and the results of its operations. Fixed Asset Management: Tagging and preparing asset ledgers for plant, facilities, and equipment; recording changes in asset status; and conducting periodic inventories of assets. Full Disclosure: Providing accurate and complete information material to a bond issue, which a potential investor would be likely to consider important in deciding whether to invest. Material facts that enable the investor to evaluate the credit quality of an issue. Full Faith and Credit: A pledge of the general taxing power for the payment of debt obligation. Bonds carrying such pledges are usually referred to as general obligation bonds or full faith and credit bonds. Full Time Equivalents [FTE]: Equal to one person based on a 2080 hours a year. Fund: An independent fiscal an accounting entity with a self- balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. Fund Balance: The excess of the assets of a fund over its liabilities, reserves, and carryover. General Fund: The largest governmental fund, the General Fund accounts for most of the financial

294 | P a g e


General Appendix resources of the general government. General Fund revenues include property taxes, licenses and permits, local taxes, service charges, and other types of revenue. This fund usually includes most of the basic operating services, such as fire and police protection, finance, planning, codes administration, public works and general administration. General Long-term debt: Long-term debt legally payable from general revenues and backed by the full faith and credit of a governmental unit. General Obligation Bonds [GO BONDS]: Bonds which are secured by the full faith and credit of the issuer. General Obligation bonds issued by local units of government are secured by a pledge of the issuer’s ad valorem taxing power. General Property Tax: The tax usually levied on real and personal property. This tax is typically levied locally. Generally Accepted Accounting Principles [GAAP]: GAAP is a way of reporting. GAAP reporting will enable your government through the use of proper funds, to present more informative Goal: A statement of broad direction, purpose or intent based on the needs of the community. A goal is general and timeless. Governmental Accounting Standards Board [GASB]: A standard-setting body, associated with the Financial Accounting Foundation and comparable to the Financial Accounting Standards Board, which prescribes standard accounting practices for governmental units in maintaining

City of Lee’s Summit Annual Budget FY14

their financial records and releasing financial data to the public. Governmental National Mortgage Association [GNMA or Ginnie Mae]: One of two corporations formerly comprising the FNMA. GMNA is an agency of the Federal Department of Housing and Urban Development empowered to provide special assistance in financing home mortgages and is responsible for management and liquidation of federally owned mortgage portfolios. Its liquidation functions involve the issuance of participation certificates representing beneficial interest in future payments on a pool of mortgages. Grant: A contribution of assets (usually cash) by on governmental unit or other organization to another. Typically, their contributions are made to local governments from state and federal governments and made for specified purposes. Grants Management: Recording grants-related transactions in keeping with grant regulations, and preparing financial reports for grantor agencies. Gross Bonded Debt: The sum of all General Obligation Debt. Also known as Direct Debt. Internal Audit: Reviewing financial transactions in both the finance department and in operating departments for compliance with local policy and generally accepted accounting principles. Internal Control: A plan of organization for purchasing, accounting, and other financial activities which, among other things, provides for separation of duties, proper authorization from responsible officials in processing of a transaction

295 | P a g e


General Appendix and the arrangement of records and procedures to facilitate effective control. Internal Service Fund: Funds used to account for the financing of goods or services provided by one department or agency to other departments of a government on a cost- reimbursement basis. Investment management: Determining amounts and types of investments to be made, securing quotes from financial markets, and apportioning interest earned to the proper funds. Investment of Proceeds: The investment of proceeds and other moneys relating to an issue is typically governed by state law and by the Indenture or Bond Resolution. Inventory: Maintaining custody and records of supplies held in stock for future consumption. Level Debt Service: An arrangement of serial maturities in which the amount of principal maturing increases at approximately the same rate as the amount of interest declines, resulting in substantially equal annual debt service payments over the life of the bonds. Levy: (verb) To impose taxes, special assessments, or service charges for the support of government activities. (noun) The total amount of taxes, special assessments or service charges imposed by a governmental unit. Liability: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed or refunded at some future date. Note: This term does not include encumbrances.

City of Lee’s Summit Annual Budget FY14

Liquidity: The ability to convert an investment to cash promptly with minimum risk to principal or accrued interest. Long-Term Debt: Debt with a maturity of more than one year after date of issuance. Management Information Systems [MIS]: Management Information Systems is an internal service department that provides computer and telecommunications needs to the other City Departments. Management Information Systems Equipment Replacement Program [MERP]: The user departments will pay a rental or lease charge that will provide funds for replacement of MIS equipment at a scheduled future date. The rental rate also includes routine maintenance service much like a commercial leasing company. Modified Accrual Basis: The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash and/or available revenues which should be accrued to reflect properly the taxes levied and revenue earned. Moody’s Investors Service: An independent service subsidiary of Dun & Bradstreet Crop., based in New York City, which provides ratings for municipal bonds and other financial information to investors. Municipal Securities Rule Making Board: An independent, self- regulatory organization established by Congress in 1975 having general rule making authority over municipal securities

296 | P a g e


General Appendix market participants (generally, brokers and dealers). Negotiated Sale: The sale of a new issue of municipal securities by an issuer through an exclusive agreement with an underwriter or underwriting syndicate selected by the issuer. Net Direct Debt: With respect to any given Issuer the amount of all outstanding debt of such Issuer (Direct Debt), less the sum of any amounts accumulated in sinking funds for such debt and the amount of such debt that is self-supporting. New Issue: An issue of securities which is purchased from the issuer and offered to investors, usually on a “when issued” basis, for the first times. Non-Callable Bond: A bond that cannot be redeemed at the issuer’s option before its stated maturity date. Object of Expenditure: Expenditure classifications based upon the types or categories of goods and services purchased. Objective: Something to be accomplished in a specific, well defined, and measurable terms, and that is achievable within a specific time frame. Outstanding: In general as used with respect to the principal of an issue, remaining unpaid.

City of Lee’s Summit Annual Budget FY14

from an issuer of municipal securities to the security holders. The paying agent is usually a bank and generally provides reconciliation of the securities and coupons paid and similar services. Payment Date: The date on which interest, or principal and interest, is payable. Payroll: Generating employee paychecks, deducting and transmitting taxes and other payments, administering insurance and other benefits, and generating required reports. Pension Administration: Managing contributions to pension accounts, maintaining records of individual employees’ account balance, making investments on behalf of pension funds, and disbursing retirement income. Per Capita Debt: The amount of an issuing municipality’s debt outstanding divided by the population residing in the municipality. Pledged Revenues: The monies obligated for the payment of debt service and other deposits required by bond contract. Policy Analysis and Research: Evaluation of policy options and recommending policies on revenue generation, financial administration, and financial aspects of operating policies and activities.

Pay-As-You-Go Basis: A term used to describe the financial policy of a governmental unit which finances all of its capital outlay from current revenues rather than by borrowing.

Premium Call: A redemption provision which permits the issuer to call securities at a price above par. Principal (in relation to bond issuance): The face amount or par value of a security payable on the maturity date.

Paying Agent: The entity responsible for transmitting payments of interest and principal

Proceeds/Original Proceeds/Gross Proceeds: The amount paid to the issuer by the first

297 | P a g e


General Appendix purchaser of a new issue. Gross Proceeds refers to all of the moneys relating to an issue which are subject to Arbitrage limitations and Rebate under the internal Revenue Code. Public Offering: The sale of bonds to the general public. Purchasing: Determining source and price of goods and services requisitioned by operating departments; authorizing and monitoring purchases. Rating Agencies: The organizations which provide publicly available ratings of the credit quality of securities issuers. Rebate: To pay the United States government amounts earned from the investment of gross proceeds at a yield in excess of the yield on the issue. Redemption: A transaction in which the issuer returns the principal amount represented by an outstanding security. Refunding: A procedure whereby an issuer refinances an outstanding bond issue by issuing new bonds.

City of Lee’s Summit Annual Budget FY14

power is not pledged. Revenue Bonds are payable from identified sources of revenue, and do not permit the bondholders to compel taxation or legislative appropriation of funds not pledged for payment of debt service. Generally, no voter approval is required prior to issuance of such obligations. Revenue Collections: Billing, collecting, and posting revenues from user fees, licenses, fines, etc. Receiving and posting revenue from tax bills; collecting overdue bills. Providing technical support and control to operating departments which collect such revenue. Revenue Estimate: A formal estimate of how much revenue will be earned from a specific revenue source for some future period, usually a future fiscal year. Revenue Fund: A fund established by the bond contract of a revenue bond issue into which all gross revenues from the financed project are initially placed and from which the monies for all funds are drawn.

Refunding Bond: A bond issued to retire a bond already outstanding.

Risk Management: Making determination of issuance coverage, administering payments to insurance companies and administrative services providers; determining and financing liability for self-insured risks.

Registered Bond: A bond whose owner is designated on records maintained for this purpose by registrar, the ownership of which cannot be transferred without the registrar recording the transfer on these records.

Serial Bonds: Bonds of an issue which are payable as to principal in amounts due at successive regular intervals, generally annual or semiannual and generally in the early years of the term of the issue.

Revenue Bond: A bond which is payable from a specific source of revenue and issuer with taxing

Special Assessment: A charge imposed against property in a particular locality because that 298 | P a g e


General Appendix property receives a special benefit by virtue of some public improvement, separate and apart from the general benefit accruing to the public at large. Special Assessments must be apportioned according to the value of the benefit received, rather than the cost of the improvement, and may not exceed the value of such benefit or the cost of the improvement, whichever is less. System Development Charge: A reimbursement fee, an improvement fee or a combination thereof assessed or collected at the time of increased usage of a capital improvement or issuance of a development permit, building permit or connections to the capital improvement. This charge includes that portion of a sewer or water system connection that is greater than the amount necessary to reimburse the unit of local government for its average cost of inspecting and installing connections with water and sewer facilities. Tax or Taxes: Compulsory charges levied by a governmental unit for the purpose of raising revenue. Tax revenues are used to pay for services or improvements provided for the general public benefit. Tax Anticipation Notes [TANS]: Notes issued in anticipation of collection of taxes usually retirable only from tax collections, and frequently only from the proceeds of the tax levy whose collection is anticipated at the time of issuance. A form of short-term financing. Tax Base: The total property and resources available to a governmental entity for taxation.

City of Lee’s Summit Annual Budget FY14

Tax Billing: Determining amounts to be billed to individual taxpayers and distribution of bills to each taxpayer. Tax-Exempt Bond: Another term for a municipal bond. Interest on many municipal bonds is exempt from federal income taxation. Tax Rate: The amount of tax stated in terms of a unit of the tax base. Tax Rate Limit: The maximum rate or millage of tax which a local government may levy. Trustee: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. Underwriters: A dealer which purchases a new issue of securities for resale. Traders with contacts with large bond buyers and ability to price the bonds for sale. Upgrade: The rising of a rating by a rating service due to the improved credit quality of the issue or issuer. Utility Billing: Determining amounts of water, sewer, electric bills; sending bills to customers, depositing and posting receipts, collecting overdue amounts. Vehicle Equipment Replacement Program [VERP]: VERP provides funds for replacement of vehicles at a scheduled future date through user departments paying rental or lease charges. The rate also includes routine maintenance service much like a commercial leasing company.

299 | P a g e


City of Lee’s Summit Annual Budget FY14

General Appendix Working Capital (Designated): An account within the fund balance of the General Fund in which a certain amount of resources were set

aside for purposes of maintaining a positive cash flow, shortfalls in the revenue projections, and emergencies during the fiscal year.

ACRONYMS AV: Assessed Valuation BERP: Building Equipment Replacement Program CIP: Capital Improvement Program CD: Certificate of Deposit

GO Bonds: General Obligation Bonds GAAP: Generally Accepted Accounting Principles GASB: Governmental Accounting Standards Board GNMA: Governmental National Mortgage Association (or Ginnie Mae]

COP: Certificate of Participation MIS: Management Information Systems F&PC: Finance and Personnel Committee FNMA: Federal National Association (or Fannie Mae) FTE: Full Time Equivalents

MERP: Management Information Systems Equipment Replacement Program Mortgage TANS: Tax Anticipation Notes VERP: Vehicle Equipment Replacement

300 | P a g e


Appendix

City of Lee’s Summit Annual Budget FY14 FY1

General

Miscellaneous Statistics

301 | P a g e


General Appendix

City of Lee’s Summit Annual Budget FY14

Quick Facts: • Located in Kansas City, Missouri Metropolitan area, in Western Missouri • Currently encompasses a total geographic area of 65.87 square miles in both Jackson and Cass counties, Missouri • Divided into 4 City Council Districts • Served by 5 school districts with Lee’s Summit R-VII serving the majority of the city area • Served by major highway corridors including I-470, US 40, US 50, M-291, M-150, and M-350 • Served by the Union Pacific Railroad and Amtrak

302 | P a g e


City of Lee’s Summit Annual Budget FY14

General Appendix

MO Statewide Populations and Rankings Geographic Area Total Rank Population State of Missouri Counties St. Louis County

5,988,927 998,954

1

Jackson County St. Charles County Greene County Clay County

674,158 360,485 275,174 221,939

2 3 4 5

Jefferson County Boone County Jasper County

218,733 162,642 117,404

6 7 8

Franklin County Cass County Cities Kansas City St. Louis Springfield Independence Columbia

101,492 99,478

9 10

459,787 319,294 159,498 116,830 108,500

1 2 3 4 5

91,364 79,329 76,780 65,794 52,575

6 7 8 9 10

Lee's Summit O'Fallon St. Joseph St. Charles Blue Springs

Demographics Average Household Size Median Age Median Household Income Per Capita Income Households Median Value Owner-Occupied Housing Units

2010 Census 2.62 37.2 $73,151 $33,149 33,054.00 $185,500

303 | P a g e


General Appendix

City of Lee’s Summit Annual Budget FY14

304 | P a g e


General Appendix

City of Lee’s Summit Annual Budget FY14

305 | P a g e


Annual Budget Fiscal Year 2014 City of Lee’s Summit

City of Lee's Summit FY 2014 Budget  

City of Lee's Summit, Missouri Fiscal Year 2014 Budget

Read more
Read more
Similar to
Popular now
Just for you