City of Lee's Summit Budget FY 2017

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Table of Contents

Table of Contents Section 1: Introduction .............................................................................................................5 History ................................................................................................................................... 6 Mayor and City Council ......................................................................................................... 7 Organization Chart ................................................................................................................ 9 Budget Calendar.................................................................................................................... 11 Section 2: Administrative Summary ..........................................................................................12 City Manager’s Budget Message........................................................................................... 13 Strategic Planning ................................................................................................................ 26 Section 3: Budget Overview......................................................................................................36 Fund Structure and Overview Numbers ............................................................................... 37 Budget Ordinance ................................................................................................................. 46 Financial Policies ................................................................................................................... 50 Section 4: Revenue Projections.................................................................................................67 Section 5: General Fund Overview ............................................................................................79 Section 6: General Fund Department Budgets ...........................................................................89 Administration ...................................................................................................................... 90 Municipal Court .................................................................................................................... 94 Development Center............................................................................................................. 97 Finance .................................................................................................................................. 101 Fire ........................................................................................................................................ 104 Law ........................................................................................................................................ 107 Planning and Special Projects ............................................................................................... 110 Police ..................................................................................................................................... 113 Public Works Engineering ..................................................................................................... 117 Public Works Operations ...................................................................................................... 120 Section 7: Special Revenue Funds .............................................................................................124 Parks and Recreation Funds.................................................................................................. 126 Other Special Revenue Funds ............................................................................................... 151 Section 8: Capital Projects Funds ..............................................................................................156 Section 9: Proprietary Funds.....................................................................................................173

City of Lee’s Summit Annual Budget FY17

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Table of Contents Internal Service Funds........................................................................................................... 175 Enterprise Funds ................................................................................................................... 188 Section 10: Debt Service Funds .................................................................................................203 General Obligation Debt ....................................................................................................... 205 Park COP Debt ....................................................................................................................... 209 Appendix .................................................................................................................................210 Miscellaneous Statistics ........................................................................................................ 221

City of Lee’s Summit Annual Budget FY17

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SECTION 1: INTRODUCTION

Who says the budget is boring? Not us!

Interact with our budget this year by grabbing your crayons or color pencils!

Enjoy!

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Introduction HISTORY Over a hundred and 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 buildings consumed by the flames. However, the stalwart citizens took their losses in stride and promptly commenced to rebuild the town.

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Introduction 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.

MAYOR AND CITY COUNCIL

Mayor Randy Rhoads District 2

District 1

Rob Binney

Diane Forte

Trish Carlyle

District 3

Diane Seif

Craig Faith District 4

Phyllis Edson

Dave Mosby

Chris Moreno

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Introduction Mayor The City of Lee’s Summit operates under a Mayor/City Council form of government.

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 FY16 budget process, the committee consisted of the following members: Diane Forte, Chair Dave Mosby Diane Seif Trish Carlyle

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Introduction

Organization Chart

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Introduction 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, 2015.

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.

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Introduction 2016 – 2017 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.

FY17 Budget Calendar Overview August 25, 2015 August 31, 2015 6:00pm October 28, 2015 October 28, 2015 October 5, 2015 6:00pm November 2, 2015 6:00pm November 9, 2015 December 7, 2015 6:00 PM December 8, 2015 December 9, 2015 December 10, 2015 December 11, 2015 January 4, 2016 6:00 PM January 11, 2016 January 18, 2016 January 18, 2016 January 29, 2016 January 2016 February 1, 2016 6:00 PM February 4, 2016 February 8, 2016 February 8, 2016 February 22, 2016 February 22, 2016 February 2016 March 14, 2016 6:00 PM April 2016 April 2016 April 4, 2016 6:00 PM April 25, 2016 6:00 PM May 2, 2016 May 2, 2016 6:00 PM May 9, 2016 6:00 PM May 16, 2016 6:00 PM May 19, 2016 6:15 PM June 2, 2016

August 2015 MT meeting: Prep for FY17 Budget Process; Review Calendar; Set Action Items Regular F&B Cmt Meeting: Agenda: Review FY17 Budget Process (Calendar), Levy Discussion October 2015 Budget Kickoff Meeting Departments begin preparing mid year projections Regular F&B Cmt Meeting: Agenda: Review of updated financial condition (Prelim FY15 Actuals), Rollover Amendment, Dashboards November 2015 Regular F&B Cmt Meeting: Agenda: Discussion of motor vehicle taxes and the Use Tax, Dashboards Pre Budget meeting begin with Internal Service Departments December 2015 Regular F&B Cmt Meeting: Agenda: Dashboards LBP Training: Navigation and Entry (2:00pm in the ITS Training Room) LBP Training: Navigation and Entry (9:00am in the ITS Training Room) LBP Training: Workforce and Reporting (2:00pm in the ITS Training Room) LBP Training: Workforce and Reporting (2:00pm in the ITS Training Room) January 2016 Regular F&B Cmt Meeting: Agenda: Dashboards All FY16 year end projections due City Manager Review of FY16 YE Projections Meet with IAFF and FOP to discuss pending Wage Opener Core Expenditure Numbers due Departments prepare FY16 budget requests February 2016 Regular F&B Cmt Meeting: Agenda: Review of FY16 Year End Projections, Dashboards , Tentative Audit Report Report to Council on Records Mgmt Audit All expansion requests due for City Manager Review (HR, Fleet, Capital, ITS) Changes to the Schedule of Fees Due Department budget meetings with City Manager begin Peformance Excellence goals due and updated scorecard/dashboard Parks and Recreation budget to Park Board March 2016 Regular F&B Cmt Meeting: Agenda: FY17 revenue projections, Changes to Schedule of Fees, Report on Records Mgmt Audit April 2016 Department budget meetings with City Manager conclude Annual Report to City Council (TBD) Regular F&B Cmt Meeting: Agenda: Dashboards Special F&B Cmt Meeting: Agenda: Presentation of City Manager's proposed FY17 Budget May 2016 Notice of public hearing due by noon Regular F&B Cmt Meeting: Agenda: Continued Discussion of FY17 Budget Special F&B Cmt Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget Special F&B Cmt Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget City Council Meeting: PUBLIC HEARING June 2016 City Council Meeting: Vote on Ordinance

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SECTION 2: ADMINISTRATIVE SUMMARY

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2: Administrative Summary

CITY MANAGER’S BUDGET MESSAGE We have prepared for you an executive summary outlining the proposed budget for the upcoming fiscal year. The city’s budget is our annual operations guide and financial plan that is formulated through a culmination of input from elected officials, management team executives, and budget staff. As City Manager, I am grateful for our collaborative approach to develop the budget ensures that we identify funds and maximize our scarce financial resources to achieve our priority of delivering outstanding municipal services.

One of the many attributes that differentiates Lee’s Summit from other communities, and has been key to our success, has been an ability to make strategic decisions, and plans, for our organization that puts our community in a position of strength to overcome challenges and orient ourselves to take advantage of future opportunities. It is this type of thinking and planning that enabled an improved financial condition and positive citizen satisfaction despite the economic crisis that began in 2007. Our new challenge is to look ahead for opportunities that support the vision statement of the Lee’s Summit City Council.

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.

As we welcome our new elected officials and continue our work with the new City Council, I am excited to resume conversation on the key issues and challenges for our organization. Under the leadership of our Mayor, Randy Rhoads, the Council will have new input from Councilmember Craig Faith, District 2, Councilmember Phyllis Edson, District 3, Councilmember Chris Moreno, District 4, and we will welcome back Councilmember Rob Binney, District 1, after a successful re-election. Together, it will be important for us to consider these issues by seeking consensus and support so we may begin work developing implementation strategies. It is this type of strategic decision-making that has been a key to our success for our community.

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2: Administrative Summary

1. Budget Request Issue Identification List Topic

Priority Safety

Fire Ambulance Expansion Downtown Performance Venue Public Safety Radio Upgrade Public Facility Connectivity Transportation/MoDOT (50 & N 291) Vehicle Fuel Management System Park Sales Tax Renewal Auto Sales Tax Renewal Stormwater -Regulatory Compliance Capital Improvement Fund Allocation Market Center of Ideas

Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1

Dependability/ Community Reliability Expectations

X

X

X X X X X

X X X X X X

X

X

X X X X X X X X X

Financial Source Ambulance Fees/General Fund G.O. Bond Issue/Gen. Fund?

G.O. Bond Issue General Fund/G.O. Bond Issue TDD/CID/LCRA/TIF/GO Bond/Fund Loan General Fund - Capital Sales Tax Vote Sales Tax Vote - Aug. 2016 General Fund Capital Improvement Sales Tax Public Incentives?/Private Investment

In the FY17 Budget and in future budgets, with help from our Management Team and budget staff, we will work to allocate resources and funding in support of these initiatives. The City has approximately 70 different funds, each categorized by purpose. We are proposing a comprehensive expenditure of $208.4 million. This includes all proposed funding for daily operations, capital improvements, debt service, internal service, and enterprise operations.

Total Budget

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

$ $ $ $ $ $

FY16 Budget 61,185,805 21,672,789 14,653,548 24,292,376 47,059,856 14,013,080

FY17 Proposed $ 64,397,020 $ 16,876,385 $ 11,127,863 $ 45,812,629 $ 56,046,838 $ 14,158,623

TOTAL PROPOSED EXPENDITURES

$ 182,877,454

$ 208,419,359

FUND

General Fund: This 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, grants, 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 2016.

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2: Administrative Summary 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-cent sales tax. Other projects are funded by tax increment financing and through the sale of general obligation bonds.

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.

2. Review of Financial Condition – General Fund The City’s financial condition is showing signs of improvement following the most recent recession.

Typically, local governments often lag behind the private business community in terms of recovery and we are just now starting to see positive improvements in our finances. It is a strength of our organization that we have a trusted group of directors and staff who seek to maximize the resources given to us by the taxpayer and limit unnecessary expenses. This practice of thoughtful spending and avoidance of unnecessary expenditures has resulted in an annual savings each year of $1 million of our budget, on average. The outcome for the City has resulted in a growth of our reserve balance to approximately $19 million, or 32% of our annual expenditures. While we have responsibly managed our finances through the recession, a new challenge is on the horizon. Lee’s Summit, and many other Missouri communities, needs to plan and identify new sources of revenues that will be used to fund the services provided to our residents like public safety, codes, and parks. Recent and proposed legislation will create a strain on municipal finances by redirecting or exempting revenue from collection. Our challenge as a community will be to identify sustainable revenue sources that can be counted on to support the level of service provided to the citizens of Lee’s Summit.

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2: Administrative Summary General Fund Revenues by Source (without EMS revenue fee change) $80,000,000

Projected

$70,000,000

$60,000,000

$50,000,000 27%

26%

23% 25%

26%

28%

24%

24%

24%

24%

24%

21%

21%

21%

21%

20%

24%

24%

23%

22%

21%

23%

23%

24%

24%

25%

24%

24%

23%

24%

23%

24%

21%

24%

$40,000,000 23%

23%

24%

24%

$30,000,000

$20,000,000

$10,000,000

20%

19%

19%

21%

31%

29%

30%

30%

31%

30%

30%

31%

30%

30%

31%

31%

31%

31%

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

$0

Property Tax

Sales Tax (Net)

Franchise Tax

Other Revenue

Total Exp

An immediate action that will prevent continued erosion of our revenue stream, but only slightly narrow the gap between revenues and expenditures will require favorable support from the community to continue the motor vehicle sales tax which is scheduled as an election item in August. Similar to the motor vehicle sales tax, the use tax would provide an opportunity to offset a tax exemption that places Lee’s Summit, and Missouri businesses, at a disadvantage when competing with the out of state and internet marketplace.

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2: Administrative Summary

General Fund: 5-Year Revenue/Expense Model FY17 Moderate Revenue Growth FY17 Revenue Assumptions: 2.5% sales tax growth from FY16 Proj; 2% decrease in Franchise Tax FY17 Expenditure Assumptions: 6% increase for Health Insurance, 2% merit increase FY14 Actual Revenues: Total operating revenues

59,948,346

FY15 Actual

61,573,436

FY16 Budget

FY16 Projected

FY17 Request

FY18 Projected

FY19 Projected

FY20 Projected

FY21 Projected

FY22 Projected

63,510,293

65,062,530

66,478,709

66,592,408

66,706,107

67,849,687

61,187,360

61,118,383

Percent Change

3.46%

6.17%

2.07%

-0.12%

3.80%

2.44%

2.18%

0.17%

0.34%

2.06%

Salaries/Total Revenues

69.28%

68.73%

69.25%

68.97%

68.21%

69.69%

71.16%

72.40%

73.64%

72.69%

*unaudited

Expenditures: Total operating expenditures Percent Change

Net Operating Rev - Exp

$

58,526,921

58,793,697

61,185,806

61,156,493

63,509,024

65,955,741

67,844,648

68,418,559

69,327,846

70,122,094

1.27%

-1.59%

4.54%

-0.05%

3.80%

3.85%

2.86%

0.85%

2.19%

3.36%

1,421,425 $

2,779,739 $

1,554 $

(38,110) $

1,269 $

(893,211) $ (1,365,939) $ (1,826,151) $ (2,621,739) $ (2,272,407)

One-Time: Revenues Expenditures

1,000,000 0

Retirement Maximization Prgm Sale of City Owned Property EMS Ambulance Expansion ITS Software Projects Environmental Outreach Use Tax Rev - Exp (after one-time) $

(475,865) 307,463 (675,000) (204,995) (8,000) 2,421,425 $

2,611,337 $

1,554 $

300,000 (38,110) $

(886,726) $

300,000

300,000

300,000

300,000

(593,211) $ (1,065,939) $ (1,526,151) $ (2,321,739) $ (1,972,407)

Revenues (with one-time) $ 60,948,346 $ 61,573,436 $ 61,187,360 $ 61,118,383 $ 63,510,293 $ 65,362,530 $ 66,778,709 $ 66,892,408 $ 67,006,107 $ 68,149,687 Exp (with one-time) $ 58,526,921 $ 58,962,099 $ 61,185,806 $ 61,156,493 $ 64,397,019 $ 66,255,741 $ 68,144,648 $ 68,718,559 $ 69,627,846 $ 70,422,094

The trends illustrated in our general fund five year model indicate that in future years our expenditures will exceed revenues which means we can look for new revenue growth opportunities or realign our levels of service to avoid prolonged deficits and a depleted reserve balance. It is this reality that makes our work together and strategic planning much more important so that Lee’s Summit is in a position of strength to overcome challenges and orient ourselves to take advantage of future opportunities.

3. General Fund Overview In FY17, general fund revenue estimates total $63,510,293 which will be used to fund a general fund operating budget of $63,509,024, with one time, special project expenses of $886,726 to be funded by the general fund reserve.

General Fund Revenues: General fund services are funded by three major revenue sources; property taxes, sales taxes, and franchise taxes. These revenues account for approximately 75% of all general fund revenues in FY17.

Overall, for FY17, revenues are expected to be $2.39m, or 3.9%, above last year’s amount.

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2: Administrative Summary Key Revenue Variances: 

Property Tax: FY17 estimates FY16 FY17 Change from FY16 Budget include a budgeted increase of Account Budget Requested $ % Property Taxes 18,770,513 19,341,788 571,275 3.0% 1.5% on the property tax base Sales Taxes 14,690,702 15,136,358 445,656 3.0% Franchise Taxes 13,640,847 13,524,887 -115,960 -0.9% for both real and personal Use Tax 3,397,624 3,364,508 -33,116 -1.0% property. An additional Other Taxes 331,239 332,640 1,401 0.4% 1,532,144 1,412,986 -119,158 -7.8% increase to factor new growth, Use Tax Use Tax 1,655,673 1,786,379 130,706 7.9% which assumes the Intergovernmental 979,021 826,253 -152,768 -15.6% Charges for Services 3,566,230 5,271,476 1,705,246 47.8% construction of 300 new Investment Earnings 0 64,103 64,103 homes at a construction value Other 1,557,065 1,494,400 -62,665 -4.0% In 1,066,302 954,515 -111,787 -10.5% of $200k, has been added for a Transfers Total 61,187,360 63,510,293 2,322,933 3.8% net increase of $201k, or 1.32% above projected year end amounts. Also included is an increase for Payment in Lieu of Tax (PILOT) for financing economic development projects that make use of incentives. The FY17 PILOT revenue is expected to be $127k above last year’s budget.



Sales Tax: The general fund sales tax amount is a net total of the 1%, or 1 cent, gross receipts tax and the Economic Activity Tax (EATs) which is used to finance economic development projects. In FY15, sales tax finished the year $1.3m, or 9.8%, 5% above FY14. Currently through FY16, sales tax is $597k, 4.7%, above last year. For FY17 recent development activity and past 21% trends provided a base estimate of 2.5% above projected FY16 year end amounts, and an impact of $193k, following new investment. The total net amount is an increase of $445k, or 3.0%, above last year’s budget.

Property Taxes

8%

2%

Sales Taxes

Franchise Taxes

31%

Motor Vehicle Taxes Other Taxes

Fines & Forfeitures Licenses & Permits Intergovernmental

24%

Charges for Services Investment Earnings



Franchise Tax: Franchise Tax revenue is received from utility providers who attain access to the city’s right of way for the commercial purposes to deliver private services. Franchise tax revenues from electric and natural gas providers are largely dependent on weather and consumption of these utilities. Using the two and three year average, these franchise taxes are estimated to remain relatively flat in FY17. Telephone franchise tax revenue is estimated to decrease $520k, or 7.5%, following an exemption that excludes network data transmission from a user’s bill. In total, franchise tax revenue is expected to decrease $116k, or .09%, from FY16 budget amounts.



Motor Vehicle Tax: In August of this year, a ballot question will ask the community if they support discontinuing the motor vehicle sales tax which currently allows Lee’s Summit to collect motor vehicle sales taxes from purchases made out of state. If the tax is discontinued the impact to the general fund would result in approximately $222k in lost revenue. If the election

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2: Administrative Summary is not successful, staff will discuss with the Council necessary changes to the level of service and expenditure reductions to offset the decreased revenue. 

Charges for Service: A significant change in revenue is planned for FY17 following a Council adopted ordinance that establishes a 50% cost recovery rate for EMS service. Gross revenue is expected to be $1.6m above last year’s amount however, after adjustments for insurance and Medicare, new net revenue of $588k is expected for FY17.

General Fund Expenditures: The challenge during every budget planning process is to efficiently maximize the scarce resources provided by tax payers and residents of the community. In FY17, I have proposed a total general fund expenditure budget of $64,397,019 that will be used to provide services to the citizens of Lee’s Summit.

During the previous three fiscal years, our organization has had to adjust how services are delivered to residents in an effort to reduce expenditures. Our Management Team and budget staff has continued this thinking as the FY17 budget was developed. 

Personnel Services: This FY16 FY17 Change from FY16 Budget Account $ % Budget Request category of expense Personal services 42,372,284 43,489,285 1,117,001 2.6% accounts for costs Supplies for resale 141,000 235,000 94,000 66.7% associated with Other supplies, services & charges 8,237,357 9,486,983 1,249,626 15.2% 1,383,654 1,398,571 14,917 1.1% employees’ compensation Repairs and maintenance Utilities 1,707,842 1,738,634 30,792 1.8% and benefits. As a service Fuel and lubricants 696,139 564,153 -131,986 -19.0% organization, our largest Miscellaneous 148,390 341,790 193,400 130.3% Capital Outlay 675,000 675,000 0.0% expense is for those who Interdepartment charges 5,479,125 5,899,392 420,267 7.7% provide our municipal Transfers out 1,020,014 568,210 -451,804 -44.3% Total 61,185,805 64,397,018 3,211,213 5.2% services such as our accountants, police officers, codes officials, firefighters, and our other dedicated professionals.

In FY17, our Fire Department is planning to hire 9 new firefighters / paramedics after engaging in a continuous improvement process through the community risk standards of cover document.

FY17 will also include a reassignment of personnel from our Landfill to Public Works following approval of a contract with a private entity to operate and close our landfill. In addition to the increased count of full time equivalents (FTEs), the FY17 budget includes a planned performance based merit increase equal to an average 2% adjustment and a forecasted 6% increase in health insurance expense. With these changes, our personnel services expense is budgeted to increase $1.1m, or 2.6%, above FY16 budget.



Other Supplies, Services, and Charges: This category of expense accounts for the expenses associated with daily operations such as goods, services, supplies, contractual expense, and many other items. The significant variance in FY17 is related to the expense ‘write off’ for Medicare and insurance adjustments which amounts to a net increase of $1.03m following

Personal Services

City of Lee’s Summit Annual Budget FY17

9%

Supplies for Resale

3% 2%

Other Supplies/Services Repairs & Maintenance Utilities

15% Fuel & Lubricants Miscellaneous 68%

Capital Outlay Interdepartmental Charges Transfers

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2: Administrative Summary the increased revenue amount for ambulance fees. 

Capital Outlay: As part of the Fire Department’s accreditation process, the department reviewed response times and service coverage through the community risk standards of cover analysis. Through that analysis, the department recognized a need to increase the level of service and improve response times by adding 2 new ambulances, and crew, to improve EMS response for the community. The capital purchase of 2 new ambulances, with equipment, is expected to cost $675k.

Key Initiatives: A high performing successful organization will seek opportunities to continuously improve operations, be forward thinking by planning for the future, and align resources to efficiently deliver services. It is necessary for our organization to make these steps and implement new business practices to meet future realties. In the FY17 budget I have proposed the following key initiatives that will strategically plan and align our organization to meet the needs of our community. These specific initiatives are more narrowly focused than the key initiatives for the organization and will assist us in those efforts by adapting our operations to new practices and processes.

1.

Enhancement of Technology Resources

For modern and growing organizations, technology is often a multiplier that brings new capacity, capability, and efficiency to our operations. In the FY17 budget, I have included funds to pursue new technology and support resources so that we may continue to provide consistent and reliable municipal services while adapting to new environments for our customers. Included in the budget are funds to increase the level of service provided by our ITS department through the addition of new personnel who can assist us in the support of our increasingly complex systems and further help us utilize and identify new technology and data sources to support the organization. Planned enhancements for FY17 include an upgrade of our enterprise resource planning (ERP) financial management system, the delivery of citizen facing technology on mobile devices for customer service inquiries, and mobile computing for fire apparatus.

2.

Enhancement of public communication

It is important to make informed decisions based on performance measure outcomes and through customer feedback. The recent Citizen Satisfaction Survey highlighted opportunities to enhance existing services in an effort to improve citizen satisfaction. One opportunity presented in the survey indicated a need to enhance public communication efforts. From 2008 to 2013 our residents’ satisfaction of the City’s communications practices decreased 5% from the previous survey conducted in 2007. This decrease is not unexpected considering the changing preferences for how we choose to receive information and what information is desired. The FY17 budget includes funding for a new approach to public communication for the City. As a result of the communication audit we plan to reassign our communication resources by redesigning the duties and responsibilities of existing positions to create a communication team that will include a Communication Strategist and Marketing Specialist position whose assignment will be to build upon our traditional communication methods and tools like the City’s website and newsletters by increasing the City’s social media presence and utilization of proactive communication and citizen engagement tools.

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary

3.

Economic Development

An ongoing initiative will always be to pursue economic development opportunities. New investment in our community from the business sector creates opportunities to enhance our economic base and quality of life for the residents of our community. It is important for our community to pursue these opportunities strategically and efficiently to maximize the use of our land and financial resources. To assist new developers and investors who seek to bring business to our community, the Development Services department was created to streamline city development processes and procedures that would enable investment to occur faster and more frequently. The City is seeing an increased level of activity and success from this approach which has identified additional needs for professional services and technology. In the FY17 budget, funds have been included for a development technician position to accelerate the engineering review process so that developers and investors can begin business in Lee’s Summit at a faster pace.

4.

Workforce Development

Investing in our workforce and succession planning is a key task that enables us to continually provide dependable and reliable municipal services. As a service organization, our workforce is our greatest asset. Like any asset, we must safeguard the investment that has been made by focusing our attention on retaining our highly professional staff while also providing opportunities for leadership development and professional growth. In the FY17 budget, I have included several reclassifications of existing positions to enable continued development of our staff who will be asked to take on additional responsibilities. Included in the reclassification of our positions is a new position for a Deputy Finance Director who will be in a leadership position as our Finance Director transitions to other opportunities. Additionally, I have included funds for a compensation policy analysis to help our organization determine the appropriate level of compensation for our staff in comparison to our competitors.

4. Enterprise and Internal Service Funds Enterprise and Internal service funds receive revenues from user fees and charges directly from internal and external customers. These funds are not directly supported by tax revenue, but by charges to City departments and users. Included in these funds are the Water Utilities, Airport, Harris Park, Resource Recovery Park (Enterprise Funds) and the Fleet Management, Building Services, and Information Technology Funds (Internal Service Funds). 

Water Utilities: The Water Utilities Department is responsible for providing clean, safe drinking water to the City with the exception of two areas served by other water districts. The Department purchases treated water from Independence and Kansas City to

City of Lee’s Summit Annual Budget FY17

Enterprise Funds FY16 Budget Water/Sewer Fund 37,464,516 Airport Fund 4,934,852 Solid Waste Management 3,083,688 Harris Park Community Ctr 1,576,799 Total 47,059,855

FY17 Proposed 40,237,585 9,766,197 4,562,341 1,480,717 56,046,838

Page 21 of 225

2: Administrative Summary serve over 35,000 residential, commercial and irrigation accounts. Similarly, the Department operates and maintains facilities to collect wastewater from its customers so that it is conveyed to Little Blue Valley Sewer District for treatment. The Department provides sanitary sewer service to approximately 32,500 accounts.

Key Initiatives:  Continue the use of technology to minimize costs through the completion of the SCADA communications project.  Continuation of the meter replacement program to ensure accountability and accuracy of customer bills.  Complete the design and begin construction of the Water Utilities facility to improve operational effectiveness of the Department.  Continue to reduce inflow and infiltration through the completion of CIPP projects and other projects to reduce treatment costs and conserve sewer system hydraulic capacity. 

Airport: The Aviation Division provides general management and administration of resources to operate, maintain, market, and promote the airport which operates two runways and eight taxiways totaling over 166,044 square yards of pavement, 22 buildings.

Key Initiatives:  Manage and coordinate the construction project for earthwork in preparation to extend runway (18-36); this is the 1st phase of construction of a 5,500 foot long concrete-paved runway with an estimated completion date in 2019, pending federal funding.  Continue marketing efforts to attract new tenants and retain current tenants, and perform a customer satisfaction survey. In advance of completion of runway improvements, marketing will increase to attract new customers who cannot currently use the airport due to its shorter runway lengths.



Resource Recovery Park: Following the privatization of landfill services the City will provide oversight to the City’s contractor to ensure compliance with state laws and the delivery of services.

Key Initiatives:  Ensure compliance of all local, state, and federal regulations pertaining to landfill operations.  Project management for the delivery and construction of a trash transfer station.



Information Technology Services: Office of Information Technology provides central management of information technology resources and initiatives within the entire organization.

Key Initiatives:  Guide the upgrade of the Lawson ERP system. This effort will require the

City of Lee’s Summit Annual Budget FY17

Internal Service Funds FY16 Budget Central Building Services 1,599,552 Fleet Operations 6,228,659 ITS Services 4,314,721 Short Term Disability Fnd 33,533 Unemployment Trust Fund 32,262 Claims & Damages Reserve Fund 875,000 Work Comp Self Insurance 929,352 Total 14,013,080

FY17 Proposed 1,668,059 5,744,190 4,870,227 39,533 32,262 875,000 929,352 14,158,623

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2: Administrative Summary



selection of a vendor, software installation, testing, and project management.

Manage implementation of 2015-2017 Project Portfolio and organizational technology initiatives including but not limited to: o o o o

 

AVL technology for the Fire Department Complete rollout of Fire Mobile Computing Adding functionality to CityView Implementing a Citizen service request tool

Manage the implementation of a significant refresh of network infrastructure

Fleet Management: The Central Vehicle Maintenance department provides oversight and management of the City’s motor vehicle and equipment fleet, including administration of the Vehicle and Equipment Replacement Program (VERP), motor pool, maintenance and repair services, acquisition and disposal of the city’s fleet units.

Key Initiatives:  Identify and implement new factory diagnostic technology equipment to be able to perform more repairs in-house and save money by not sending repairs to outside venders.  Work to identify solutions for a central fueling site that will eliminate EPA storm water drainage problems with the current site located at Fire Headquarters.  Reduce our parts inventory stock and utilize local parts supply venders instead of increasing stock for slow demand inventory.



Central Building Services: Provides oversight and management of City’s facilities including administration of the Building and Equipment Replacement Program, Project Management, Facility Maintenance Services and Custodial Services Programs; as well as maintenance and repair services for excess properties and leased facilities.

Key Initiatives:  Assist Water Utilities management staff by providing oversight during the construction phase of the new Operations Facility.  Assist Public Works Operations Department by providing construction oversight during the new conveyor and brine system installation.  Complete pavement, roofing, and HVAC repairs or replacements at Fire Stations, Police HQ, City Hall and Maintenance Facility utilizing BERP program funding.

5. Capital Improvement Plan The 2017-2021 Capital Improvement Plan (CIP) has been divided into eight major categories, plus the Public Works and Water Utility Programs. The total estimated cost of all projects included in the five-year plan is $303,968,000

City of Lee’s Summit Annual Budget FY17

Capital Project Funds FY16 Budget Water & Sewer Construction 5,957,376 Bridges, Streets, Signals 12,330,000 Facilities 0 Capital Equipment Replacement 678,000 Airport 3,043,000 Parks Construction 2,225,000 Total 24,233,376

FY17 Proposed 7,998,628 24,726,000 260,000 733,000 9,931,000 2,100,000 45,748,628 Page 23 of 225

2: Administrative Summary 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. For budgeting purposes, the first year’s funding is included in the annual budget with subsequent years funding added to each future annual budget respectively.

In FY17, major CIP projects receiving funding include:  Ward Rd (MO 150 to Raintree Parkway)  Blackwell Road Interchange with US50: $5.8m $6.1m  US50 Hwy / Route 291S Interchange - $6.1m  Sanitary Sewer Main Replacement program: $1m  Construct Pavement for Runway 18-36: $6.6m  Water Main Replacement program: $2m

6. Workforce and Expansion Requests Each year during the budget process departments may identify capital equipment, job positions, or onetime expenditures that could be funded to enhance services or improve processes. These expansion requests are reviewed to ensure that they support the goals and objectives of the organization and can be financially supported.

The following expansion requests have been approved for funding consideration in FY17:

FY17 Expansion Items Capital Equipment Item Oil Burning Furnace Purchase of Leased Diesel Fuel System ITS Software Projects Other Public Works Environmental Outreach Law Outside Legal and Other Resources *Personnel Changes Reclassified Positions: Department Current Position Title New Position Title Airport Line Attendant Supervisor Assistant Airport Manager Airport Line Attendant PT Line Attendant FT Finance Procurement Contract Compliance Deputy Director of Finance Public Works Senior Engineering Technician Lead Engineering Technician ITS Senior GIS Analyst GIS Coordinator ITS Inventory and Records Specialist Administrative Assistant ITS Sr Network Administrator ITS Operations Supervisor Fleet Mechanic Mechanic/Parts Specialist Admin Communications Director Public Relations Professional Admin City Communications Officer Communications Strategist Police Evidence and Property Tech Police Systems Manager New Positions: Airport Airport Intern Development Center Development Technician ITS Database Administrator ITS System Support Specialist ITS Web Specialist Total Impact: Total General Fund Impact: * Amounts Include Benefit Costs Department Fleet Airport ITS

City of Lee’s Summit Annual Budget FY17

$Impact 12,000 2,050 204,995 8,000 50,000

$Impact 4,252 19,776 21,731 5,465 3,600 2,000 5,000 3,500 29,000 5,000 77,838 103,000 60,000 58,800 676,007 498,211 Page 24 of 225

2: Administrative Summary Workforce, or employee counts, is described as a ratio of full time equivalents (FTE) where one full time employee is estimated to work 2,080 hours annually or 2,912 hours for certain fire department personnel. In the FY17 budget the workforce includes 679 full time positions and 302 part time positions of which 523 full time positions and 27 part time positions are included in the General Fund.

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

Full Time Equivalents (FTE) FY15 FY16 FY17 528.74 526.11 539.58 113.95 111.52 110.89 59.5 60.5 60.5 6.22 6.26 7.46 14.8 14.8 1 8.62 10.62 10.62 9.12 9.12 9.12 25.89 24.71 27.76 766.84 763.64 766.93

Change from FY16 $ % 13.47 2.6% -0.63 -0.6% 0 0.0% 1.2 19.2% -13.8 -93.2% 0 0.0% 0 0.0% 3.05 12.3% 3.29 0.4%

7. Summary

The FY17 budget, and previous budgets, is a byproduct of the collaborative input from our elected officials, management team, and our talented staff. This ability to work together, strategically plan, and maximize our financial resources, represents a healthy environment that is focused on the community and serving the residents of Lee’s Summit.

Sincerely,

Stephen Arbo, City Manager

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary

Introduction One of the many attributes that differentiates Lee’s Summit from other communities, and has been key to our success, has been an ability to make strategic decisions, and plans, for our organization that puts our community in a position of strength to overcome challenges and orient ourselves to take advantage of future opportunities. It is this type of thinking and planning that enabled an improved financial condition and positive citizen satisfaction despite the economic crisis that began in 2007. Our new challenge is to look ahead for opportunities that support the vision statement of the Lee’s Summit City Council.

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.

Under the leadership of our Mayor, Randy Rhoads, the Council will have new input from Councilmember Craig Faith, District 2, Councilmember Phyllis Edson, District 3, Councilmember Chris Moreno, District 4, and we will welcome back Councilmember Rob Binney, District 1, after a successful re-election.

Together, it will be important for us to consider these issues by seeking consensus and support so we may begin work developing implementation strategies. It is this type of strategic decision-making that has been a key to our success for our community.

Approach Using a prioritization technique popularized by Stephen Covey, the Mayor, City Council, and Staff identified 30 emerging issues or goals to address that will enable the City to continue as a prosperous and dynamic community.

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary

Importance

4 Quadrant Prioritization

Urgency

Goal Areas and Objectives

Glossary of Project Names and “Q” Assignments Fire Ambulance Expansion – Q1 The addition of one ambulance crew, two ambulances (one for operations and a second one for reserve), and related equipment and supplies.

Downtown Performance Venue – Q1 Creation of a space in the downtown area that would allow visual and audio performances to an audience between 300-400 people.

Public Safety Radio Upgrade Q1 Enhancing the City’s radio communication system for the public safety response departments and other operational departments to allow “interoperability” between departments and other political jurisdictions.

The current system is “analog-based” and the upgrade would be “digital-based”.

Public Facility Connectivity Q1 Digital connectivity is required between the City of Lee’s Summit buildings, sewer basin monitoring stations, water storage systems, to exchange important data and telephone communications. The current connectivity system is a compilation of older “T1” lines, analog telephone lines, and cellular communications. An integrated system using today’s technology is required for long-term reliability.

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary Transportation/ MoDOT (US 50 & North M291) – Q1 MoDOT has determined that the bridge structure is in need of replacement in the near future. Due to fiscal constraints MoDOT will replace the bridge with the same capacity design unless there are other funds that can be identified.

Vehicle Fuel Management System – Q1 The current system is based upon older technology and is limited our ability to monitor vehicle fuel usage as it relates to maintenance analysis. The fueling station located at the Fire Headquarters is located adjacent to a stormwater inlet without appropriate safety measures for potential fuel spills or accidents. A new system would be located where environmental protective devices could be installed. The new system would also provide new use monitoring technology.

Park Sales Tax Renewal – Q1 The existing Park Sales Tax will expire in 2018. There has been a proposal by the Parks and Recreation Board to place a renewal tax question on a future election.

Auto Sales Tax Renewal – Q1 The temporary legislation that allows the collection of City sales tax (currently 2 ¼ ₡) from residents who purchase vehicles outside the State of Missouri will expire in November 2016. The City will lose this revenue without the authorization of the voters before November 2016. There will be no future opportunities to consider this revenue source after this date.

Stormwater – Regulatory Compliance – Q1 The National Pollutant Discharge Elimination System (NPDES) regulations are changing in 2016, which will require increased effort by the City to comply with these storm water quality rules. The new permit conditions will be finalized in the next few months and the city will need to be prepared to take more proactive compliance steps, including public education and outreach, illicit discharge identification and elimination, and control of possible pollutants at city facilities.

Capital Improvement Fund Allocation – Q1 Due to a combination of lower than expected construction costs and a stable revenue performance in our ½ ¢ Capital Improvement Sales Tax (set to expire in 2018), city staff has projected approximately $22M of additional funds available that may be available for other significant capital improvement needs that qualify as appropriate expenditures. (City Council discussion on this matter will be on February 11, 2016.)

Market Center of Ideas – Q1 The development of a program or physical location that would assist individuals who are pursuing the start of a business or promoting an entrepreneurial idea.

Public Services Video System – Q2 Pending State Legislation, Missouri Municipalities will be required to equip each Police Officer and Patrol Vehicle with video and audio recording systems. The system will need to be integrated and provide a quality signal to determine the actions of the officer and the individual of interest.

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary Records Management – Q2 Based upon a recent audit of the City’s record management system, operating costs could be reduced through the establishment of a comprehensive digital-based system. This system will allow the continued compliance of MO Records Statutes while eliminating duplicate documents. All paper documents required by law will still be retained.

Stormwater – Public System Deterioration – Q2 Approximately 44% of the enclosed public stormwater system is built with metal corrugated pipe. Due to natural corrosion from native soils; metal pipe has a limited life span and eventually is need of replacement. Most of our metal pipe is over 20 years in age and is in need of replacement. A proactive replacement program is needed for the “at risk” conditions of the metal pipe as well as several locations of deteriorated concrete pipe.

Transportation – Maintenance (Road, Sidewalks, Curbs) – Q2 The maintenance costs of the City’s existing transportation infrastructure will continue to grow, especially the need to replace deteriorating curbs.

Fire Station No. 3 – Q2 The current Fire Station No. 3 is not adequate for modern fire fighting practices regarding the dwelling conditions and equipment storage. The Standards of Cover report indicates a future need for ambulance service from this station, as Fire District 3 has the highest demand of all districts within Lee’s Summit.

The current station cannot house an ambulance and additional crew due to the building size and configuration. A new, modern facility is needed to meet the needs of the community. rd

Transportation / MoDOT (3 and Ward Road) – Q2 There are existing capacity issues at this intersection that reduces the level of service for traffic. Also, this intersection restricts future development opportunities due to capacity issues.

Master Plan – S291 Corridor – Q2 The new US 50 / M291 South intererchange will create new capacities and development opportunities for this corridor. Long-term planning and identifying the “highest and best” use of the impacted properties could help the community to achieve a successful development outcome of this project.

Stormwater – Private Property – Q2 Due to a combination of community and a higher frequency of intense rainstorms, there has been an increase of surface water causing negative impacts to private properties. There are community voices requesting the City’s involvement in reducing these impacts caused by stormwater erosion on private property.

City Revenue Structure – Q3 The current municipal revenue structure is based upon older concepts that are losing relevance as new technologies are creating societal shifts. One example is “brick and mortar” based businesses were a traditional approach to capturing property and sales tax. Today, we see new growth and demand on our municipal services through internet and home-based operations.

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary Use Tax Consideration – Q3 Many Missouri municipalities and counties have adopted “use tax” provisions that allow the collection of the local sales tax on machinery and other non-consumables purchased outside the State of Missouri.

The absence of the use tax may create an incentive for non-Missouri purchases to be made instead of local options. The adoption of a use tax would help to build a broader diversity of revenue sources to support our operations.

Pro Active Code Enforcement – Q3 The City generally carries out the minimum housing and neighborhood standards codes on a “complaint basis”. Unless the matter is regarding signs, weeds, or potential threat of life or property, the City will react to items that are brought to our attention by neighboring property owners or concerned citizens.

Some cities have found that “pro-active code enforcement” is a way to assure neighborhoods and commercial properties are kept at a standard to encourage continued investments.

Compensation / Pay Policy – Q4 The City has not adopted a statement that indicates our intention as it relates to attracting qualified candidates and retaining our existing talent pool of employees. Many organizations will determine how competitive they want to be regarding attracting and retaining employees and measure their resource allocation decisions against that policy.

Environmental Programs – Q4 In the past, the City has funded the “environmental programs” such as Household Hazardous Waste, Yard Waste Composting, White Goods Drop-Off, Recycling Center Operations, etc. through a portion of the tipping fees collected at the landfill. Some of these programs will be retained by the assigned private landfill operator, Heartland Environmental Services, other programs are available through other community resources, and a few of the programs will not be available.

Cultural Arts Master Plan- Q4 Although there has been significant progress towards the implementation of the Cultural Arts Master Plan, many initiatives and programs have not been achieved. Recently the Parks and Recreation Department commissioned an update of the 2011 Cultural Arts Plan and will be presenting these findings to the City.

Residential Rental Program – Q4 Many of our older neighborhoods have seen an increase in rental-occupied homes. The property values and stability of these neighborhoods could be strengthened through a code inspection program when there is a change in occupancy.

Transportation Capacity (1/2¢ Capital Improvement Sales Tax) – Q4 The 1/2¢ Capital Improvement Sales Tax has traditionally been used to create new transportation capacities which resulted in improved levels of service or new economic development opportunities. This sales tax will expire in 2018 and will need to be renewed through an election process.

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary “Big 5” Downtown Plan Implementation – Q4 Recently the City Council adopted five strategic approaches to moving forward the 2004 Old Lee’s Summit Redevelopment Plan: a) expanded definition of “downtown”; b) creation of an outdoor event space, c) development of key corridors and gateways, d) implementation of parking strategy, and e) development of zoning and land use guidelines to encourage density housing opportunities.

Transportation / MoDOT (Todd George Road) – Q4 There are existing capacity issues at this intersection that reduces the level of service for traffic. Also, this intersection restricts future development opportunities due to capacity issues. The construction of the Blackwell Road interchange may reduce the traffic demand at this location. The City will monitor the impact of the Blackwell Road interchange to determine the urgency.

Rock Island Railroad Corridor – Q4 Jackson County is negotiating with Union Pacific Railroad to purchase the Rock Island Railroad corridor.

This corridor runs through the southeastern portion of the City upward to the View High and I-470 interchange, eventually connecting to the Jackson County Sports Complex. If the purchase is completed, there may be an impact to the City of Lee’s Summit regarding the future potential uses of this corridor.

Summary Proactive effort today to address our emerging issues will place Lee’s Summit in a position to deliver positive outcomes for our residents.

City of Lee’s Summit Annual Budget FY17

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2: Administrative Summary

City of Lee’s Summit Performance Excellence Dashboard As previously identified, four key initiatives in the General Fund for FY2017 are: 1. Enhancement of technology resources; 2. Enahncement of public communications; 3. Economic Development; and 4. Workforce Development.

The City has established performance measures and targets associated with each of these key initiatives in order to measure success and continually improve upon these initiatives.

1. Enhancement of technology resources The City intends to conduct an internal survey of employees to determine employee level of satisfaction with the level of service provided by ITS; the quality of assets and resources; and customer service provided by the Department. This will be used to identify opportunities for improvement.

2. Ehancement of public communications

Website unique page views User average time on page Bounce Rate

FY14 FY15 FY16 1,656,015 1,748,244 1,682,077 1:14 1:22 1:17 50.54% 56.26% 57.18%

FY17 1,800,000 1:25 50.00%

3. Economic Development

Business licenses issued Contractor licenses issued Development projects managed Land Clearance for Redevelopment Authority applications

FY15 FY16 FY17 FY18 4,490 4,709 4,945 5,192 1,368 901 947 993 170 234 250 265 3 4 3 3

4. Workforce Development

City-wide Turnover Short-term Disability Claims Workers' Comp Claims

City of Lee’s Summit Annual Budget FY17

CY2013 7.61% 5 56

CY2014 6.38% 7 58

CY2015 7.73% 7 58

CY2016 10.00% 6 60

CY2017 10.00% 6 60

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2: Administrative Summary

Additionally, Key Performance Indicators have been established such that basic services of the City are being measured and improved upon. These categories are the same as those used in the Covey prioritization technique for the purposes of strategic planning.

1. Safety 2. Dependability and Reliability 3. Community Expectations Safety encompasses the public safety realm, including Fire Department and Law Enforcement. The performance indicators and measurements for this category will include average response time, call for service, and crime rates.

Investing in and maintaining our infrastructure is a key function of Public Works, and their success is a highly visible performance measure of the Dependability and Reliability of the City. Performance measurements for this Key Performance Indicator will include adherence to the 7 year plan for slurry seal on the roads, snow and ice removal in accordance to the annual Snow Plan, and bridge sufficiency.

One of the values of this community is that Lee’s Summit remains a safe, vibrant, and beautiful city.

Codes Enforcement and Neighborhood Services Division ensures that residential and commercial structures in the city comply with the Unified Development Ordinance as well as the City Code of Ordinances. Timely abatement of these issues is a Community Expectation of Lee’s Summit residents.

1. Safety

Number of Incidents by Year, Fire Dept.

CY2013 CY2014 CY2015 CY2016 CY2017 Fire 1,643 1,818 2,022 1,920 1,971 EMS 6,184 6,244 6,833 6,539 6,686 Hazardous Materials 391 409 553 481 517 Rescue 541 545 592 569 580 Total Incidents 8,759 9,016 10,000 9,508 9,754

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2: Administrative Summary Total Average Response Time, Fire Dept.

CY2013 CY2014 CY2015 CY2016 Low Risk Fire Metro-Urban n=209 n=222 n=240 8:50 8:32 8:25 6:20 Suburban n=85 n=85 n=93 9:48 10:06 9:03 7:20 Rural n-147 n=168 n=171 10:28 10:47 9:50 7:20 Moderate Risk Fire Metro-Urban n=2 n=2 n=6 12:37 10:41 12:29 10:20 Suburban n=2 n=1 n=5 18:02 9:40 15:21 12:20 Rural n=2 n=1 n=7 18:15 12:21 18:20 12:20 High Risk Fire Metro-Urban n=19 n=19 n=21 16:51 12:45 20:05 10:20 Suburban n=3 n=4 n=8 14:13 18:08 15:58 12:20 Rural n=5 n=5 n=8 21:16 22:40 16:44 12:20 Performance Measures, Law Enforcement CY2013 CY2014 CY2015 Calls for Service Animal Control Citizen Calls Police-Initiated Calls Clearance Rate Criminal Investigations Special Investigations Domestic Violence Response Time Emergency Non-Emergency

City of Lee’s Summit Annual Budget FY17

CY2016

CY2017

9,358 31,323 44,003

9,848 30,485 42,759

10,518 31,259 36,192

9,908 31,022 40,985

10,091 30,922 39,979

48.12% 84.81% 77.05%

47.23% 85.71% 65.08%

45.18% 86.47% 79.53%

50.00% 90.00% 80.00%

50.00% 90.00% 80.00%

5:30 8:33

5:18 7:41

5:50 8:20

5:30 8:00

5:30 8:00

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2: Administrative Summary 2. Dependability and Reliability

Performance Measurements

FY14

FY15

FY16

FY17

Slurry seal streets within seven years following construction or overlay (% Complete)

100%

100%

100%

100%

Remove ice and snow from City streets in accordance with the annual Snow Plan

100%

100%

100%

100%

Perform preventative maintenance on all City maintained signals, street lights and school flashers annually (% Complete)

100%

100%

100%

100%

Average number of days to complete customer initiated work orders

40

29.5

43.9

40

Performance Measurements

FY14

FY15

FY16

FY17

Percentage project overrun including change of scope change orders Bridge Sufficiency Rating (Based on biennial MoDOT inspection of Lee's Summit's 52 bridges) Traffic Safety

4.76%

0.90%

0.63%

< 5%

87.85%

87.85%

88.66%

â&#x2030;Ľ 87.85%

2%

-3%

+1.8%

-2%

94.34%

94.34%

92.7%

99.44%

(% Change Total Crashes in City Rights-of-Way) Traffic Flow (% of Signal Operations at or Better Than Average Vehicle Delay Goal) 3. Community Expectations

Performance Measures, Codes Enforcement and Neighborhood Services FY13 FY14 FY15 FY16 Building permits issued 1,749 2,302 1,885 1,980 Building inspections performed 12,766 15,896 18,744 15,744 Neighborhood Services cases 1,990 1,819 1,730 1,731 Neighborhood Services inspections performed 11,051 8,648 7,003 6,88 Average time for NHS initial inspection (days) 2 2 3 2 Signs removed from right-of-way 2,199 1,201 598 897 Minor home repair applicants 43 22 34 40 Minor home repair projects funded 15 16 20 10

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

FY17 2056 16,795 1,818 7522 3 899 32 10

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SECTION 3: BUDGET OVERVIEW

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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

Proprietary Fund Types

Special Revenue

Capital Project

Enterprise

Internal Service

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

SummitWoods East 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 Fund WU Equipment Replacement Airport Construction Capital Improvement Sales Tax Road & Bridge Improvement Park Development Fund TIF Application Fund Cultural Arts 2013 Blue Pkwy & Colbern Rd CID Fund US50/Rte 291 S Interchange Bonds Paragon Star TIF

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

Central Building Services Fleet Operations ITS Services Short Term Disability Fund Unemployment Trust Fund Claims & Damages Reserve Fund Work Comp Self Insurance

Debt Service General Obligation Debt Park COP Debt

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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 6/30/2016

FY17 Budget Add Less Revenues Expenditures

Projected Balance 6/30/2017

Net Change Amount Percent

GOVERNMENTAL FUNDS General Fund Total Governmental Funds

25,201,276 25,201,276

63,503,911 63,503,911

64,397,019 64,397,019

24,308,168 24,308,168

(893,108) (893,108)

-3.5% -3.5%

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

392,513 1,066,127 2,157,227 218,238 272,122 6,109 1,269,294 37,569 409,959 147,596 4,988,538 10,951,918

532,693 1,973,887 3,453,037 643,545 377,473 250,653 260,250 31,722 106,684 92,297 205,000 7,927,241

474,121 1,812,530 3,272,170 641,685 374,455 369,229 231,034 31,721 57,000 42,961 7,306,906

451,085 1,227,484 2,338,094 220,098 275,140 (112,467) 1,298,510 37,570 459,643 196,932 5,193,538 11,572,253

58,572 161,357 180,867 1,860 3,018 (118,576) 29,216 1 49,684 49,336 205,000 620,335

14.9% 15.1% 8.4% 0.9% 1.1% -1941.0% 2.3% 0.0% 12.1% 33.4% 4.1% 5.7%

6,266,529 1,991,344 8,257,873

8,174,885 3,749,865 11,924,750

8,394,503 2,733,360 11,127,863

6,046,911 3,007,849 9,054,760

(219,618) 1,016,505 796,887

-3.5% 51.0% 9.7%

3,994,335 183,869 29,675,621 715,290 (73,810) (20,335,594) (4,245,900) (384,565) 15,047,176 11,728,377 4,245,227 4,155,356 74,235 (6,014,290) 1,508,773 136,068 (26,123) (3,697,255) 5,602,164 42,288,954

2,732,474 732,465 7,658,179 1,748,889 346,255 (1,473,436) 236,644 5,558,893 91,407 7,658,179 138,113 1,594,793 50,000 5,000 27,077,855

5,895,297 457,200 6,630,000 1,525,520 317,065 9,931,000 1,958,373 1,558,255 2,832,000 1,650,000 733,000 11,952,000 183,114 1,191,283 2,100,000 50,000 260,000 9,000 6,144,000 5,001 55,382,108

831,512 459,134 30,703,800 938,659 (44,620) (30,266,594) (7,677,709) (1,706,176) 17,774,069 10,078,377 3,603,634 (138,465) 29,234 (5,610,780) (591,227) 136,068 (286,123) (3,706,255) (541,836) (1) 13,984,701

(3,162,823) 275,265 1,028,179 223,369 29,190 (9,931,000) (3,431,809) (1,321,611) 2,726,893 (1,650,000) (641,593) (4,293,821) (45,001) 403,510 (2,100,000) (260,000) (9,000) (6,144,000) (1) (28,304,253)

-79.2% 149.7% 3.5% 31.2% -39.5% 48.8% 80.8% 343.7% 18.1% -14.1% -15.1% -103.3% -60.6% -6.7% -139.2% 0.0% 995.3% 0.2% -109.7% 0.0% -66.9%

77,719 20,137,199 12,573,125 (3,205,261) 29,582,782

1,565,076 8,771,313 36,934,885 677,000 47,948,274

1,480,717 9,766,197 40,237,585 4,562,341 56,046,840

162,078 19,142,315 9,270,425 (7,090,602) 21,484,216

84,359 (994,884) (3,302,700) (3,885,341) (8,098,566)

108.5% -4.9% -26.3% 121.2% -27.4%

115,218 67,066 153,914 1,637,974 2,172,392 4,137,783 76,802 8,361,149

34,146 29,268 597,091 958,924 1,485,685 3,040,773 3,885,094 10,030,981

39,533 32,262 875,000 929,352 1,668,059 5,744,190 4,870,227 14,158,623

109,831 64,072 (123,995) 1,667,546 1,990,018 1,434,366 (908,331) 4,233,507

(5,387) (2,994) (277,909) 29,572 (182,374) (2,703,417) (985,133) (4,127,642)

-4.7% -4.5% -180.6% 1.8% -8.4% -65.3% -1282.7% -49.4%

124,643,952

168,413,012

208,419,359

(40,006,347)

-32.1%

DEBT SERVICE FUNDS G.O. Debt Service Fund Park Certificate of Participation Debt Fund Total Debt Service Fund CAPITAL PROJECT FUNDS Summitwoods East TIF I-470 Business Center TIF Capital Improvements Sales Tax 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 Todd George/50 Hwy TIF Neighborhood Park Development TIF Application Fund Cultrual Arts 2013 Blue Parkway & Colbern CID Fund US 50/Rte 291S Interch Bonds Paragon Star TIF Total Capital Project Funds ENTERPRISE FUNDS Harris Park Community Center Airport Operating Water Utility Operating Solid Waste Management Total Enterprise Funds INTERNAL SERVICE FUNDS Short-Term Disability Trust Unemployment Trust Claims & Damages Reserve Fund Workers Compensation Self-Insurance Central Building Services Fleet Operations Information Technology Systems Total Internal Service Funds Grand Total

84,637,605

*Scrivener's error; inadvertant sign change. Revenue anticipated to be $1,473,436.

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3: Budget Overview

Combined Revenues by Type General 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

Special Revenue

Debt Service

$

19,341,788 15,136,358 13,524,887 3,364,508 332,640 1,412,986 1,779,997 826,253 5,271,476 64,103 1,494,400 954,515

$ 3,186,691 376,473 2,500 20,250 357,337 2,932,679 153,979 43,900 168,812 100,000 552,897

$

8,071,441 3,744,865 17,194 41,250 50,000 -

$

63,503,911

$ 7,895,518

$ 11,924,750

Capital Projects $

4,340,178 $ 17,664,387 275,905 80,204 523,326 7,315,000 (1,289,330) 37,671,609 870,081 288,603 77,627 55,000 919,011 5,527,413 738,837

$ 27,109,577

Internal Service

Enterprise $

17,757 850 643,321 9,119,702 249,351

Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

34,940,098 36,545,610 13,524,887 3,364,508 376,473 352,334 1,750,391 1,860,201 9,021,916 44,586,434 1,024,060 541,990 2,638,073 743,321 9,119,702 8,023,013

$ 47,948,274

$ 10,030,981

$ 168,413,011

Enterprise

Internal Service

Total

Combined Expenses by Type General Personal services Supplies for resale Other supplies & services Repairs and maintenance Utilities Fuel and lubricants Depreciation Miscellaneous Interest Debt service Capital outlay Construction Interdepartment charges Transfers out

$

$

Special Revenue

Debt Service

43,489,285 235,000 9,486,983 1,398,571 1,738,634 564,153 341,790 675,000 5,899,392 568,210

$ 3,677,121 $ 2,202,706 513,611 408,562 36,527 36,907 171,511 (122,353) 304,095 46,499

64,397,018

$ 7,275,186

140,603 1,660,760 9,151,500 175,000

$ 11,127,863

Capital Projects $

6,391,785 1,138,416 2,135,000

$

45,202,000 546,628

5,388,165 16,689,614 4,508,404 653,966 705,161 82,145 5,106,966 83,481 89,136 1,041,117 14,000 3,563,163 787,393 17,334,129

$ 55,413,829

$ 56,046,840

$

3,597,146 2,886,449 585,727 280,325 7,325 1,865,210 3,917,331 484,950 534,161 -

$ 14,158,624

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

56,151,717 16,924,614 25,616,930 3,151,875 3,132,682 690,150 6,972,176 462,178 2,888,312 12,327,617 4,777,842 49,127,760 7,525,041 18,670,466

$ 208,419,360

Transfers Out: Includes payments for expansion items, appropriations for the Arts Council, Beautification th Commission, and 4 of July event expenses.

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CHANGES IN FUND BALANCES Lee's Summit, Missouri, Combining Funds Statement

By Fund Types For Fiscal Year 2017 Special Revenue

General Est. Beginning Balance $

25,201,276

$ 10,954,712

Revenues Transfers In

62,549,396 954,515

7,342,621 552,897

Debt Service $

Capital Projects

Enterprise

8,257,873

$ 43,144,081

$ 29,582,782

11,924,750 -

21,582,164 5,527,413

47,209,437 738,837

Internal Service $

Total

8,361,149

$ 125,501,873

9,781,630 249,351

160,389,998 8,023,013

Total Resources

63,503,911

7,895,518

11,924,750

27,109,577

47,948,274

10,030,981 $ 168,413,011

Less: Expenditures Transfers out

63,828,808 568,210

7,228,687 46,499

10,952,863 175,000

54,867,201 546,628

38,712,711 17,334,129

14,158,624 0

Ending Balance $ Fund Balance Change: Amount Percent

24,308,169

($893,107) -3.5%

$ 11,575,044

$620,332 5.7%

$

9,054,760

$796,887 9.7%

$ 14,839,829

$ 21,484,216

($28,304,252) -65.6%

($8,098,566) -27.4%

$

189,748,894 18,670,466 $ 85,495,524

4,233,506

($4,127,643) -49.4%

($40,006,349) -31.9%

Fund and Department organization The General Fund: This 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, grants, 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 2014.

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.

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.

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3: Budget Overview 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.

General Fund Departments Change from FY16 Budget FY16 FY17 Department Budget Budget $ % Administration 3,951,437 3,807,101 -144,336 -3.65% Public Works/Engineering 3,337,049 5,321,876 1,984,827 59.48% Law Enforcement 19,738,636 19,629,141 -109,495 -0.55% Fire/EMS Services 15,114,975 16,718,365 1,603,390 10.61% Finance 6,395,253 8,046,556 1,651,303 25.82% Legal Services 1,219,257 1,271,229 51,972 4.26% Municipal Court 809,800 841,616 31,816 3.93% PW Operations Division 6,769,131 5,018,924 -1,750,207 -25.86% Development Center 2,887,583 3,207,042 319,459 11.06% Planning & Neighborhood Srvcs 962,684 535,170 -427,514 -44.41% Special Revenue Fund Departments Parks & Recreation 3,207,072 3,272,170 65,098 2.03% Gamber Center 458,725 474,121 15,396 3.36% Legacy Park Community Center 1,697,269 1,706,985 9,716 0.57% Summit Waves Aquatic Center 590,401 641,685 51,284 8.69% Cemetary 238,698 231,034 -7,664 -3.21% Enterprise Fund Departments Water Utilities 37,464,516 40,237,585 2,773,069 7.40% Airport 4,934,852 9,766,197 4,831,345 97.90% Solid Waste (Landfill) 3,083,688 999,178 -2,084,510 -67.60% Harris Park Community Center 1,576,799 1,480,717 -96,082 -6.09% Internal Service Fund Departments Central Building Services 1,599,552 1,668,059 68,507 4.28% Fleet 6,228,659 5,744,191 -484,468 -7.78% ITS (Information Technology) 4,314,721 4,870,227 555,506 12.87%

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3: Budget Overview 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 FY17.

Example FTE Calculation: Position Hours Worked Hours Available Management Analyst 1500 ÷ 2080 =

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

Full Time Equivalents (FTE) FY15 FY16 FY17 528.74 526.11 539.58 113.95 111.52 110.89 59.5 60.5 60.5 6.22 6.26 7.46 14.8 14.8 1 8.62 10.62 10.62 9.12 9.12 9.12 25.89 24.71 27.76 766.84 763.64 766.93

FTE 0.72 Change from FY16 $ % 13.47 2.6% -0.63 -0.6% 0 0.0% 1.2 19.2% -13.8 -93.2% 0 0.0% 0 0.0% 3.05 12.3% 3.29 0.4%

A summary of variances can be found in the general fund overview section on page 87 and the individual department summaries.

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3: Budget Overview Key Financial Trends The City’s Budget Committee is updated monthly regarding the City’s financial condition and financial trends. In addition to the monthly information, the Budget Committee reviews key trends when presented midyear projections and budget estimates.

At the beginning of the budget process for FY17, the City’s major sources showed marginal growth following rapid development that started early in 2000 and slowed during the most recent recession.

However, positive monthly trends emerged during FY16 that forecasted significant revenue growth and reduced expenditures. Total General Fund revenue for FY16 is anticipated to finish $1.2m, or 2%, above FY15 amounts. New growth of approximately 2.5% is expected to occur over the next five year period.

Additionally, in FY16 the City began review of user fees and charges which will continue in the next year.

In FY16, ambulance fees were increased to achieve a better cost recovery from those who use the service and our residents. The new rates will allow for 50% cost recovery for EMS services. This new rate is still below other municipalities in the metro and allows for the collection of the maximum authorized amount from medicare/Medicaid which was previously limited due to the smaller fee amount.

In addition to revenue analysis, key expenditure trends are presented for Budget Committee review.

The largest category of expenditures, excluding capital costs, is for personnel. An important trend the City is monitoring is the increase in health insurance costs. Health insurance is growing faster than any other operating cost. Additionally, as has been the experience in previous years, FY16 expenditure amounts are expected to be below budget by approximately $3.0m, or -5%, and $317k, or -.5%, below FY15. During the FY17 budget process, budget staff and department directors, analyzed the variance between budgeted amounts and actual amounts to identify the cause of the significant variance. The review found that many of the departmental budgets included contingency items that often never

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3: Budget Overview occurred. While budgeting and planning for all possible outcomes and realities builds solid budgets, the inclusion of contingency items distorted the annual expenditure request and limited the City Council and City Managerâ&#x20AC;&#x2122;s ability to direct new resources to existing programs or pursue new opportunities. A reduced contingency amount has been planned and budgeted within the Administration department budget.

Beginning in FY15 and continuing to FY16, the City Manager presented to the City Council a two year plan that would adjust general fund expenditures to a level that could be supported by regular, reoccurring revenues and achieve a balanced budget. The FY15 budget anticipated the use of approximately $1.4m of funding from the reserve balance however, through revenue growth and cost cutting measures the general fund reserve balance is expected to grow by approximately $2.4m. In FY17, the budget includes use of approximately $890k of the General Fund reserve balance to fund the addition of two new ambulances, EMS personnel, and information technology infrastructure projects.

EMS fees were increased to offset the increased level of service and to provide sustainable funding in future years.

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The FY17 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.

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City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

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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.

Basis of Budgeting and 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

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3: Budget Overview

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 Cityâ&#x20AC;&#x2122;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.

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.,

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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.

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.

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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

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

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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 employerrelated 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.

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.

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3: Budget Overview

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 As adopted by City Charter and Council Policy 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 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 City of Lee’s Summit Annual Budget FY17

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3: Budget Overview 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.

• 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

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3: Budget Overview

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 Management Analyst 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 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 Management Analyst 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

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3: Budget Overview 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 Management Analyst 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.

2016 â&#x20AC;&#x201C; 2017 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.

FY17 Budget Calendar Overview August 25, 2015 August 31, 2015 6:00pm October 28, 2015 October 28, 2015 October 5, 2015 6:00pm November 2, 2015 6:00pm November 9, 2015 December 7, 2015 6:00 PM December 8, 2015 December 9, 2015 December 10, 2015 December 11, 2015 January 4, 2016 6:00 PM January 11, 2016 January 18, 2016 January 18, 2016 January 29, 2016 January 2016

August 2015 MT meeting: Prep for FY17 Budget Process; Review Calendar; Set Action Items Regular F&B Cmt Meeting: Agenda: Review FY17 Budget Process (Calendar), Levy Discussion October 2015 Budget Kickoff Meeting Departments begin preparing mid year projections Regular F&B Cmt Meeting: Agenda: Review of updated financial condition (Prelim FY15 Actuals), Rollover Amendment, Dashboards November 2015 Regular F&B Cmt Meeting: Agenda: Discussion of motor vehicle taxes and the Use Tax, Dashboards Pre Budget meeting begin with Internal Service Departments December 2015 Regular F&B Cmt Meeting: Agenda: Dashboards LBP Training: Navigation and Entry (2:00pm in the ITS Training Room) LBP Training: Navigation and Entry (9:00am in the ITS Training Room) LBP Training: Workforce and Reporting (2:00pm in the ITS Training Room) LBP Training: Workforce and Reporting (2:00pm in the ITS Training Room) January 2016 Regular F&B Cmt Meeting: Agenda: Dashboards All FY16 year end projections due City Manager Review of FY16 YE Projections Meet with IAFF and FOP to discuss pending Wage Opener Core Expenditure Numbers due Departments prepare FY16 budget requests

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3: Budget Overview

FY17 Budget Calendar Overview February 2016 February 1, 2016 6:00 PM February 4, 2016 February 8, 2016 February 8, 2016 February 22, 2016 February 22, 2016 February 2016 March 14, 2016 6:00 PM April 2016 April 2016 April 4, 2016 6:00 PM April 25, 2016 6:00 PM May 2, 2016 May 2, 2016 6:00 PM May 9, 2016 6:00 PM May 16, 2016 6:00 PM May 19, 2016 6:15 PM June 2, 2016

Regular F&B Cmt Meeting: Agenda: Review of FY16 Year End Projections, Dashboards , Tentative Audit Report Report to Council on Records Mgmt Audit All expansion requests due for City Manager Review (HR, Fleet, Capital, ITS) Changes to the Schedule of Fees Due Department budget meetings with City Manager begin Peformance Excellence goals due and updated scorecard/dashboard Parks and Recreation budget to Park Board March 2016 Regular F&B Cmt Meeting: Agenda: FY17 revenue projections, Changes to Schedule of Fees, Report on Records Mgmt Audit April 2016 Department budget meetings with City Manager conclude Annual Report to City Council (TBD) Regular F&B Cmt Meeting: Agenda: Dashboards Special F&B Cmt Meeting: Agenda: Presentation of City Manager's proposed FY17 Budget May 2016 Notice of public hearing due by noon Regular F&B Cmt Meeting: Agenda: Continued Discussion of FY17 Budget Special F&B Cmt Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget Special F&B Cmt Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget City Council Meeting: PUBLIC HEARING June 2016 City Council Meeting: Vote on Ordinance

CASH MANAGEMENT PROCEDURES As adopted by Council Policy

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.

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3: Budget Overview 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 As adopted by Council 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. o o o o o o

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

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3: Budget Overview 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.

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.

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3: Budget Overview 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 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

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3: Budget Overview 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.

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 As referenced by City Charter and Council Adopted Policy

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3: Budget Overview 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.

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.

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3: Budget Overview 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) 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.

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3: Budget Overview 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.

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SECTION 4: REVENUE PROJECTIONS

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4: Revenue Projections

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. Recovery from the recent economic downturn has slowly occurred. In FY17, modest growth was budgeted in property and sales tax revenues but remained flat for franchise taxes. Anticipated growth is budgeted to be less than 2.5% compared to over 4% growth annually before the start of the recession.

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 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.

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4: Revenue Projections

Property Tax Legal Authorization:

Account Codes:

State Statute : Chapter 94, Chapter 137 City Ordinance : N/A

4000, 4001, 4003, 4004, 4005

Description: Revenue from the ad valorem tax, levied on all real and personal property is based upon the assessed valuation as 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. They are 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. Each year the City Council must set the rates to be levied for the City’s property taxes. In odd numbered years, all county assessors are required to re-assess property values in their county.

The Hancock Amendment applies to Previously Assessed Property (property assessed prior to 2015—all AV from 2014), and, limits the increase in 2015 Revenues generated by that property to the lesser of 5%, the CPI or the increase in assessed values for previously assessed property. Budget amounts are calculated using the previous calendar year's final assessment or preliminary assessment. Because reassessment only occurs in odd numbered years, budgeted amounts fall short of actual amounts because of conservative growth projections at the time of calculation.

Basis of Projection & Analysis:

Financial Trend $33,000,000

Jackson County provided a preliminary assessment for FY17, CY 2016, of preal and personal roperty values. Previously assessed value decreased slightly, which allowed the levy to rise 0.3%. But due to new construction, property tax receipts are expected to rise 1.8%.

$31,000,000 $29,000,000 $27,000,000 $25,000,000 $23,000,000 $21,000,000 $19,000,000 $17,000,000 $15,000,000 2007

2009

2011

2013

2015

2016

Fund Category Collection/ Distribution Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 2017

Annual

Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Projected Budget

General Fund

Parks Fund

13,300,401 14,195,891 14,602,478 14,547,687 14,892,688 15,848,556 17,105,687 17,157,136 18,709,442 18,770,513 18,982,478 19,341,788

2,359,127 2,513,405 2,585,937 2,585,795 2,637,233 2,815,820 3,027,000 3,034,833 3,080,222 3,111,019 3,111,019 3,186,691

Debt Service Fund 7,201,005 7,670,169 7,888,020 7,895,226 7,773,817 7,594,422 8,024,576 7,894,182 7,967,013 8,162,690 8,162,690 8,071,441

Percent

TOTAL

Change

22,860,533 24,379,465 25,076,435 25,028,708 25,303,738 26,258,798 28,157,263 28,086,151 29,756,677 30,044,222 30,256,187 30,599,920

22.8% 6.6% 2.9% -0.2% 1.1% 3.8% 7.2% -0.3% 5.9% 1.0% 1.7% 1.8%

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4: Revenue Projections

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4: Revenue Projections

Sales Tax Account Codes:

Legal Authorization: State Statute :

Sections 94.500 to 94.550, 94.575-94.577 & 94.70094.705, and Chapter 144

City Ordinance :

1-7(2)

4020, 4021

Description: The City imposes a total sales tax of 2.25% on all goods and commodities sold within the City limits, and it is broken down into four funds as detailed below . Transportation and Park Development local sales taxes are not levied on utilities. The State of Missouri receives the tax from the respective business and distributes the funds monthly to the City.

In an April 5, 2005 special election, the City voted to extend the Park Development Fund's local sales tax for a period of ten years beginning April 1, 2008 at a rate of one-quarter of one percent (1/4 of 1%). This rate was a .125% reduction from what was then the current rate.

In an April 3, 2007 special election, the City also voted to extend the Capital Improvements sales tax for streets and related projects for a period of ten years from its pending expiration of March 31, 2008 with no rate change.

Therefore, beginning April 1, 2008, the City's total sales tax rate was reduced from 2.375% to 2.25% due the reduction of .125% in the Park Development Fund.

Basis of Projection:

Financial Trend $37,000,000

In FY16 Sales Tax Revenue grew approximately 4.8% from FY15 causing a significanct variance.

$35,000,000

FY17 estimates project a moderate 3.3% increase over FY16.

$33,000,000 $31,000,000 $29,000,000

Sales tax is broken between four funds as follows:

$27,000,000 $25,000,000

General Fund Transportation Fund Capital Projects Local Park Development Fund

1.000% 0.500% 0.500% 0.250%

$23,000,000 $21,000,000 2007

2009

2011

2013

2015

2016

Fund Category Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

General Fund

Park Development Fund

11,912,066 12,395,589 12,293,604 11,988,325 12,807,628 13,313,301 13,133,037 14,149,200 14,840,058 15,354,713 15,461,316 15,846,744

4,283,737 4,091,315 2,957,206 2,862,358 3,056,886 3,169,317 3,094,709 3,321,232 3,500,464 3,661,528 3,661,528 3,922,462

Transportation Tax Fund 5,712,776 5,889,151 5,834,171 5,720,233 6,116,282 6,337,138 6,190,196 6,641,048 7,024,992 7,677,357 7,677,357 7,923,372

Capital Project Fund 5,954,905 6,196,483 5,995,944 5,991,814 6,402,173 6,655,532 6,565,125 7,073,186 7,418,888 7,677,357 7,677,357 7,923,372

Annual Percent

TOTAL 27,863,484 28,572,538 27,080,925 26,562,730 28,382,969 29,475,288 28,983,067 31,184,666 32,784,402 34,370,955 34,477,558 35,615,950

Change 6.7% 2.5% -5.2% -1.9% 6.9% 3.8% -1.7% 7.6% 5.1% 4.8% 5.2% 3.3%

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4: Revenue Projections

Utility Franchise Fees Electric, Natural Gas, Telephone, and Cable Account Codes:

Legal Authorization:

4040, 4041 4042, 4043

State Statute : Sections 94.110 - 94.120 City Ordinance : 28-90 through 28-97; 28-121 through 28-125; 28-150 through 28-153; 8-39 Description:

Electric: The City charges a license fee of 7% of the gross receipts derived from the sale of electric energy for domestic and commercial consumption within the City. The fee is collected by the utility company and remitted to the City the following month.

Natural Gas: The City charges a license fee of 7% of the gross receipts derived from the sale of natural gas for domestic and commercial consumption in the City. The fee is collected by the utility company and remitted to the City the following month.

Fees collected are highly dependent on weather conditions in the City. Wholesalers are also contracting with large volume users to purchase direct from the well fields avoiding the franchise fee.

Cable: The City charges a license fee of 5% of the gross receipts derived on all service charges for customers subscribing to cable television service. The fee is assessed on regular monthly billing, and cable companies remit their fees on a quarterly basis to the City.

Telephone: The City charges a license fee of 7% on the gross receipts derived from telecommunication services provided in the City. The fee is collected by the telecommunications companies and is then remitted to the City.

Basis of Projection & Analysis:

Financial Trend $18,000,000

In FY16 all categories of Franchise Tax were budgeted to decrease following change in demand, service price, customer choices, and milder weather.

$16,000,000 $14,000,000 $12,000,000

In FY17 Franchise Tax is budgeted to continue the trend of flat, slightly drecreasing revenues. The conditions for demand of utilities remain consistent as outlined above.

$10,000,000 $8,000,000 $6,000,000 2007

2009

2011

2013

2015

2016

General Fund Category Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

Electric 4,659,832 5,945,521 5,752,438 6,424,501 6,879,663 7,013,016 6,897,629 7,031,470 6,970,491 6,811,281 7,105,364 7,179,755

Natural Gas 2,458,654 2,729,717 2,775,436 2,445,981 2,670,556 1,918,302 2,195,122 2,308,681 2,408,322 2,331,670 2,110,153 2,231,422

Telephone 1,005,314 5,020,069 3,194,742 4,838,274 5,525,907 3,739,688 3,668,256 3,490,461 3,148,218 3,251,957 2,834,926 2,731,898

Cable 898,264 967,484 1,014,328 1,116,837 1,173,511 1,072,791 1,319,367 1,253,171 1,343,734 1,245,939 1,375,971 1,381,812

TOTAL 9,022,064 14,662,791 12,736,944 14,825,593 16,249,638 13,743,797 14,080,374 14,083,783 13,870,765 13,640,847 13,426,414 13,524,887

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17 Page 72 of 225

4: Revenue Projections

EATS -- Local Sales Tax Account Codes:

Legal Authorization: State Statute : Section 99.820, 99.845 City Ordinance :

4020, 4021

Description: For redevelopment projects approved by ordinance after August 31, 1991, fifty percent of the total additional revenue from taxes, penalties and interest which are imposed by the municipality or other taxing districts, and which are generated by economic activities within the area over a determined base amount, but excluding certain taxes, shall be allocated to, and paid to the municipality, who shall deposit such funds in a separate segregated account within a special allocation fund.

Lee's Summit has seven active TIF redevelopment projects which are/will generate economic activity taxes (EATS): Summit Woods, Chapel Ridge, I-470 Business and Technology, Longview, Todd George and 50 Highway and Summit Fair.

In an April 5, 2005 special election, the City voted to extend the Park Development Fund's local sales tax for a period of ten years beginning April 1, 2008 at a rate of one-quarter of one percent (1/4 of 1%). This rate was a .125% reduction from what was then the current rate.

In an April 3, 2007 special election, the City also voted to extend the Capital Improvements sales tax for streets and related projects for a period of ten years from its pending expiration of March 31, 2008 with no rate change.

Therefore, beginning April 1, 2008, the City's total sales tax rate was reduced from 2.375% to 2.25% due the reduction of .125% in the Park Development Fund.

Basis of Projection & Analysis:

Financial Trend $3,700,000

EATs payments for a major shopping center ended in 2013. This amounts to an estimated $1 million reduction for general fund receipts. The same proportionate reduction was anticipated for the other funds.

EATs payments in FY17 is projected to increase 7.5% over FY16 Budgeted amounts as a result of increased economic activity within the City as well as areas receiving economic development incentives.

$3,200,000 $2,700,000 $2,200,000 $1,700,000 $1,200,000 $700,000 $200,000 2007

2009

2011

2013

2015

2016

Fund Category Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

General Fund

Park Development Fund

Transportation Tax Fund

466,996 464,489 392,347 331,991 377,262 394,228 14,229 141,266 173,547 158,313 166,851 177,597

615,968 658,311 737,002 663,981 754,491 788,456 28,458 282,531 347,095 332,006 333,702 355,193

1,245,288 1,316,622 1,474,003 1,327,463 1,508,982 1,576,913 56,916 565,063 694,189 664,011 667,404 710,386

Capital Project Fund 622,644 658,311 658,488 663,981 754,491 788,456 28,458 282,531 347,095 332,006 333,702 355,193

Annual Percent

TOTAL 2,950,896 3,097,733 3,261,840 2,987,416 3,395,227 3,548,053 128,061 1,199,927 1,561,925 1,486,336 1,501,659 1,598,369

Change 8.5% 5.0% 5.3% -8.4% 13.7% 4.5% -96.4% 837.0% 30% -4.8% -3.9% 7.5%

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17 Page 73 of 225

4: Revenue Projections

Payment in Lieu of Taxes (PILOT) Legal Authorization:

Account Code:

State Statute : Section 100.010 to 100.200, 353.030, and 99.800 to 99.865 City Ordinance : N/A

4006

Description: The City promotes economic development by utilizing several state authorized tax incentive mechanisms: 1. Chapter 100 - provides an incentive for new industries to locate in the area, as well as encourages companies already in the area to remain, by assisting them in improving their present facilities or in building new ones; ad valorem taxes on bond-financed property are abated, and negotiated PILOTs are made by the company to the City and each political subdivision.

2. Tax Increment Financing (TIF) - encourages development of blighted, substandard, or economically under-utilized areas that would not develop without public assistance; the PILOTs are made by property owners in the redevelopment area on the increase in current equalized assessed valuation of each such parcel, and such payments are deposited into the special allocation fund (SAF); payments to the SAF may be used to pay for the redevelopment project costs or to repay any obligations (i.e., bonds or promissory notes) issued by the municipality to pay for the redevelopment project costs.

Basis of Projection:

Financial Trend $9,000,000

Chapter 100 Bonds Summit Technology, BHA Technologies Inc., and Kokam America are reflected in the General Fund category below. The PILOTs are generated pursuant to the terms of Section 100.010 to 100.200, RSMo. The allocation of the PILOT for distribution to the City is based on the City's levy in effect when the Section 100 Bonds were issued.

$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000

Tax Increment Financing I-470 Business Center, Summitwoods Crossing, Chapel Ridge, Longview, Northeast, Summit Fair, and Todd George/50 Highway TIF revenues are reflected in the Tax Increment Financing Funds category below. The PILOTs are generated pursuant to the terms of the Real Property Tax Increment Allocation Redevelopment Act.

$1,000,000 $0 2007

2009

2011

2013

2015

2016

Fund Category Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

General Fund 716,571 694,165 685,679 839,760 832,033 937,569 1,015,795 954,808 1,289,492 1,463,426 1,453,631 1,581,526

Special Revenue Funds

Tax Increment Financing Funds -------------

3,536,071 3,536,612 5,329,992 6,667,397 7,504,450 6,199,020 6,198,679 4,590,048 4,262,286 2,401,275 2,401,275 2,915,057

Annual Percent

TOTAL

Change

4,252,642 4,230,777 6,015,671 7,507,157 8,336,482 8,336,482 7,214,474 5,544,856 5,551,778 3,864,701 3,854,906 4,496,583

42.9% -0.5% 42.2% 24.8% 11.0% 0.0% -13.5% -23.1% 0.1% -30.4% -30.6% 16.6%

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17 Page 74 of 225

4: Revenue Projections

State Motor Vehicle Taxes and Fees FUEL TAX, SALES TAX, & LICENSE/TRANSFER FEE Account Codes:

Legal Authorization: State Statute :

4009, 4010, 4011

Article IV ,Section 30(b); Article X, Section 144.069; Chapter 142, Section 150.150;144.069; 94.560 City Ordinance : N/A Description:

Vehicle Fuel Tax: This tax is the City share of the state tax on motor vehicle fuel. Distribution to the cities is based on the population of that city as of the last census count, which for Lee's Summit is 2000. Vehicle Fuel Tax funds must be used solely for "construction, reconstruction, maintenance, repair, policing, signing, lighting, cleaning of roads, and for the payment of principal and interest on indebtedness on account of road and street purposes and uses thereof".

Vehicle Sales Tax: This tax is on the purchase price of a motor vehicle, trailers, boats and outboard motors. Sales tax rate is determined where the vehicle is titled.

Vehicle License/Transfer Fee: This fee is the City share of the State of Missouri vehicle license and transfer fees assessed.

Allocation is based on a city's population according to the last Federal decennial census. The Street Department operations budget was moved under the auspice of the General Fund in FY 1996. Funds derived from this revenue source are to used solely for "construction, reconstruction, maintenance, repair, policing, signing, lighting, cleaning of roads, and for the payment and interest on indebtedness on account of road and street purposes and uses thereof".

Basis of Projection:

Financial Trend $3,800,000

For FY14, motor vehicle tax receipts were projected to decrease 0.5% from FY13 projections. Late in FY12, the motor vehicle fuel tax increased due to the results of the new census data which determines the disbursement allocation to cities.

For FY17 motor vehicle taxes were budgeted to meet 3 year average amounts.

$3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $2,600,000 $2,400,000 2007

2009

2011

2013

2015

2016

General Fund Category Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

Vehicle Fuel Tax 2,048,184 2,047,266 1,956,477 1,970,976 1,980,610 2,170,623 2,306,425 2,330,205 2,387,630 2,363,720 2,442,233 2,241,240

Vehicle Sales Tax 558,169 454,303 371,754 385,201 420,857 500,104 574,002 683,598 732,706 649,918 728,717 707,503

Vehicle License/Transfer Fee 437,838 312,707 308,086 307,527 310,500 357,738 381,790 383,510 393,868 383,986 391,149 415,765

Annual Percent

TOTAL 3,044,191 2,814,276 2,636,317 2,663,704 2,711,968 3,028,465 3,262,217 3,397,313 3,514,204 3,397,624 3,562,099 3,364,508

Change 3.5% -7.6% -6.3% 1.0% 1.8% 11.7% 7.7% 4.1% 3.4% -3.3% 1.4% -1.0%

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17 Page 75 of 225

4: Revenue Projections

Interest on Investments Account Codes:

Legal Authorization: State Statute : Chapter 67 City Ordinance : see the City's Investment Policy

4600, 4601, 4602, 4603, 4604

Description: The City maintains a cash and investment pool which is available to all funds. These funds are combined and managed by the City's Cash Management Officer. Investments in the pooled cash fund include United States Treasury Bills and Notes and non-callable U. S. Agency offerings and are carried at cost, which approximates market value. Interest income is distributed by percentage, to the various funds on a monthly basis in accordance with the fund's cash balance. Current portfolio maturities extend to a maximum of three (3) years. New investments are usually made at the maximum three (3) year maturity.

Basis of Projection & Analysis:

Financial Trend $9,000,000

Projections are based on average cash balances multiplied by the average percentage yield. An interest rate of 1.25% for the 2011 budget and 1% for the 2012 budget. For FY16 an interest rate of 0.25% was assumed.

$8,000,000 $7,000,000 $6,000,000 $5,000,000

The graph to the right clearly illustrates the reduced return available on investments over the past year.

$4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2007

2009

2011

2013

2015

2016

Fund Category

#

Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

General Fund

Special Revenue, Debt Service & Capital Project Funds

1,325,004 947,237 658,156 183,497 281,152 90,664 152,052 90,664 74,823 0 50,000 64,103

3,816,990 3,129,419 1,820,754 245,393 646,426 485,765 544,765 34,764 454,300 396,483 393,741 382,503

Enterprise Funds 2,588,566 2,709,663 1,401,400 145,272 325,226 92,118 125,239 38,500 114,208 83,681 77,184 77,627

Internal Service Funds 610,667 612,772 296,883 15,160 57,123 34,994 68,111 56,593 24,101 28,087 28,087 17,757

TOTAL 8,341,227 7,399,091 4,177,193 589,322 1,309,927 703,541 890,167 220,521 667,432 508,251 549,012 541,990

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17 Page 76 of 225

4: Revenue Projections

CONTRIBUTIONS - FEDERAL Legal Authorization:

Account Code:

State Statute : N/A City Ordinance : N/A

4303

Description: Grant monies originating with the Federal Government, whether received directly from the Federal Government or indirectly from the State of Missouri, are recorded in this account. Federal Transportation funds (used for improving major roadways), Federal Airport Block Grants, Community Development Block Grants (CDBG), Highway Safety Grants, High Intensity Drug Trafficking Activity (HIDTA) funds, Federal Emergency Management Agency (FEMA) funds and Violence Against Women Act (VAWA) funds are recorded in this account.

Basis of Projection:

Financial Trend $16,000,000

In FY16, the City's general fund is expected to receive funding for D.A.R.E and reimbursement for FBI Police training activies. In addition, the City will again apply for a Violence Against Women Grant (VAWA) which is a federal program designed to reduce violence.

In FY17, the City expects to continue to receive funding for D.A.R.E., FBI Police Training, and VAWA in the General Fund. The Airport expansion and construction efforts are expected to be supported by federal grant in this fiscal year.

$14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2007

2009

2011

2013

2015

2016

Fund Category Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

General Fund 177,016 164,403 95,963 152,952 222,895 129,624 183,576 122,004 172,780 380,454 83,423 35,899

Special Revenue Funds 494,369 660,738 392,592 326,168 194,792 386,146 390,021 376,666 357,247 304,334 554,987 357,337

Proprietary Funds 9,653,004 1,739,725 4,353,384 1,982,042 311,929 701,484 6,052,000 4,000,000 0 3,840,362 3,840,362 6,949,250

Capital Project Funds 3,748,385 2,496,782 0 0 0 0 0 4,738,000 0 533,537 0 0

TOTAL 14,072,774 5,061,648 4,841,939 2,461,162 729,616 1,217,254 6,625,597 9,236,670 530,027 5,058,687 4,478,772 7,342,486

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17 Page 77 of 225

4: Revenue Projections

Water Sales/ Sewer Charges Account Codes:

Legal Authorization:

4448, 4450

State Statute : N/A City Ordinance : 32.101, 32.313; see also the City's Schedule of Fees

Description and Basis of Projection: The Water Utilities Department serves over 35,000 customers. The total available water supply of 32.5 million gallons per day (MGD) includes 25 MGD from Kansas City, Missouri and 7.5 MGD from Independence, Missouri. Water consumption and sewer revenue projections are based on five-year consumption averages of customers. Customer data is collected by meter size, consumption volume and customer type and input within the Utilities' cost of service model to forecast revenue requirements. The model projects the necessary revenues to meet projected operational and capital expenses. A five-year projected rate schedule based on the revenue requirements is annually reviewed and adjusted as necessary.

Monthly Water Base Rates (Effective January 1, 2016): Water Base Meter Size Water Base Meter Size Charge (Inches) Charge (Inches) 5/8" $9.09 3" $18.69 3/4" $9.09 4" $40.78 1" $10.19 6" $62.87 1 1/2" $10.96 8" $93.45 2" $13.75 10" $227.23

Financial Trend $19,000,000 $18,000,000 $17,000,000 $16,000,000 $15,000,000 $14,000,000

Water Volume Rates (Effective January 1, 2016): Commercial Rate $4.58 per 1,000 gallons

$13,000,000

Residential Rates for the first 7,000 gallons 7,001 to 15,000 gallons Over 15,000 gallons

$11,000,000

Water Sales

$10,000,000

Sewer Charges

$3.90 per 1,000 gallons $4.58 per 1,000 gallons $5.73 per 1,000 gallons

$12,000,000

$9,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 2017

Monthly Sewer Base Rates (Effective January 1, 2016): Meter Size Water Base Meter Size Water Base (Inches) Charge (Inches) Charge 5/8" $13.09 3" $22.90 3/4" $13.09 4" $29.45 1" $19.64 6" $39.27 1 1/2" $20.18 8" $49.08 2" $21.27 10" $59.99 Sewer Volume Rates (January 1, 2016): All Usage $5.02 per 1,000 gallons

Water/Sewer Fund Category Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Projected 2017 Budget

Water Sales 12,631,190 12,419,624 11,401,342 10,772,114 11,626,441 13,577,053 15,413,579 16,183,498 15,269,508 17,228,663 16,473,224 18,229,643

Sewer Charges

TOTAL

13,193,123 13,297,125 13,321,285 13,248,819 13,632,552 13,876,449 13,951,872 15,030,363 15,454,532 16,531,995 16,498,249 17,222,333

25,824,313 25,716,749 24,722,627 24,020,933 25,258,994 27,453,502 29,365,451 29,325,742 30,724,040 33,760,658 32,971,473 35,451,976

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17 Page 78 of 225

SECTION 5: GENERAL FUND OVERVIEW

Page 79 of 225

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 an ordinance that requires 16.67%, or an amount equal to two months of expenditures.

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.

City of Lee’s Summit Annual Budget FY17

Page 80 of 225

5: General Fund Overview General

GENERAL FUND BUDGET SUMMARY YEAR BEGINNING JULY 1, 2016

REVENUES: Taxes Licenses, Permits & Fees Fines & Forfeitures Interest Intergovernmental Revenues Charges for Services Other Operating Transfers In Total Revenues

$

$

EXPENDITURES: Personal Services* Supplies Contractual Services Maintenance & Repair Utilities and Fuel Capital Outlay Operating Transfers Out Interest Expense & Depreciation Other** Total Expenditures

$

$

Excess of Revenues Over (Under) Expenditures

FY 2012 ACTUAL

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

45,669,127 $ 1,328,522 1,534,265 90,684 823,492 3,605,332 1,617,830 2,502,778 57,172,030 $

48,879,612 $ 1,511,860 1,607,096 18,009 860,763 3,688,257 1,383,657 1,753,912 59,703,166 $

49,528,302 $ 1,757,827 1,323,205 68,363 791,849 3,648,402 1,775,778 2,054,720 60,948,446 $

50,582,633 $ 2,226,752 1,583,793 74,823 443,278 3,935,146 1,697,862 1,030,008 61,574,295 $

50,830,925 $ 1,655,673 1,532,144 0 979,021 3,566,230 1,557,065 1,066,302 61,187,360 $

51,090,341 $ 1,662,398 1,521,137 50,000 680,390 3,617,306 1,521,065 975,746 61,118,383 $

51,700,181 1,786,379 1,412,986 64,103 826,253 5,271,476 1,494,400 954,515 63,510,293

39,730,876 $ 188,703 7,309,274 6,084,971 2,211,768 42,851 868,173 0 0 56,436,616 $

41,034,802 $ 147,573 7,323,030 6,271,365 2,294,753 132,025 539,522 7 51,232 57,794,309 $

41,530,341 $ 134,503 6,631,325 6,360,632 2,337,854 461 1,475,167 0 56,638 58,526,921 $

42,793,618 $ 154,795 6,760,580 6,340,025 2,253,493 0 655,336 0 50,906 59,008,753 $

42,372,284 $ 141,000 8,237,357 6,862,779 2,403,981 0 1,020,014 0 148,390 61,185,805 $

42,208,103 $ 201,000 8,529,276 6,817,140 2,261,142 0 1,020,014 0 119,818 61,156,493 $

43,489,285 235,000 9,486,983 7,297,963 2,302,787 675,000 568,210 0 341,790 64,397,018

735,414

1,908,857

2,421,525

FY 2016 BUDGET

2,565,542

FY 2016 PROJECTED

1,555

FY 2017 REQUESTED

(38,110)

(886,725)

Fund Balance, Beginning of Year

$

12,171,751 $

12,907,165 $

14,816,022 $

17,237,547 $

19,803,089 $

19,803,089 $

19,764,979

Fund Balance, End of Year

$

12,907,165 $

14,816,022 $

17,237,547 $

19,803,089 $

19,804,644 $

19,764,979 $

18,878,254

Net Unrestricted Fund Balance

12,907,165

14,816,022

17,237,547

19,803,089

19,804,644

19,764,979

18,878,254

Percentage of Expenditures (including transfers)

22.9%

25.6%

29.5%

33.6%

32.4%

32.3%

29.3% Revenue Expenditures Fund Balance

REVENUES, EXPENDITURES & FUND BALANCE $75,000,000 $65,000,000 $55,000,000 $45,000,000 $35,000,000 $25,000,000 $15,000,000 $5,000,000 ACTUAL FY 2012

ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2015 FISCAL YEAR

BUDGET FY 2016

PROJECTED FY 2016

REQUESTED FY 2017

** This summary reflects budget amendments and the accural of a one-time legal settlement payment of $15.5M in FY11. The payment occurred after the FY12 budget adoption and is therefore not reflected in all tables and graphs in this document unless specifically stated.

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

Page 81 of 225

5: General Fund Overview General

General Fund Revenues by Source

Account Property Taxes Sales Taxes Franchise Taxes Motor Vehicle Taxes Other Taxes Fines & Forfeitures Licenses & Permits Intergovernmental Charges for Services Investment Earnings Other Transfers In Total

FY16 Budget 18,770,513 14,690,702 13,640,847 3,397,624 331,239 1,532,144 1,655,673 979,021 3,566,230 0 1,557,065 1,066,302 61,187,360

FY16 FY17 Change from FY16 Budget Change from FY16 Projected $ % $ % Projected Requested 18,982,478 19,341,788 571,275 3.0% 359,310 1.9% 14,793,912 15,136,358 445,656 3.0% 342,446 2.3% 13,426,414 13,524,887 -115,960 -0.9% 98,473 0.7% 3,562,099 3,364,508 -33,116 -1.0% -197,591 -5.5% 325,438 332,640 1,401 0.4% 7,202 2.2% 1,521,137 1,412,986 -119,158 -7.8% -108,151 -7.1% 1,662,398 1,786,379 130,706 7.9% 123,981 7.5% 680,390 826,253 -152,768 -15.6% 145,863 21.4% 3,617,306 5,271,476 1,705,246 47.8% 1,654,170 45.7% 50,000 64,103 64,103 14,103 28.2% 1,521,065 1,494,400 -62,665 -4.0% -26,665 -1.8% 975,746 954,515 -111,787 -10.5% -21,231 -2.2% 61,118,383 63,510,293 2,322,933 3.8% 2,391,910 3.9%

Summary of Significant Assumptions and Changes for FY17 • • • •

Significant increase in sales tax from previous year (budget), FY17 sales tax revenue is expected to grow 2.5% above the projected year end of FY16.

Marginal growth in Franchise Tax revenue is expected in FY17. Amounts were budgeted to total near the three year average for each category.

FY17 Property Tax amounts assume new growth of 300 homes and an inflationary adjustment of .5% in assessed value.

FY17 includes an increased ambulance fee (Charges for Service) which is expected to result in approximately $1.2m net following debt adjustments.

City of Lee’s Summit Annual Budget FY17

Page 82 of 225

5: General Fund Overview General

General Fund Expenditures by Department

General Fund Departments FY16 FY17 Change from FY16 Budget Department Budget Budget $ % Administration 3,951,437 3,807,101 -144,336 -3.7% PW Engineering 3,337,049 5,321,876 1,984,827 59.5% Police 19,738,636 19,629,141 -109,495 -0.6% Fire 15,114,975 16,718,365 1,603,390 10.6% Finance 6,395,253 8,046,556 1,651,303 25.8% Law 1,219,257 1,271,229 51,972 4.3% Planning & Codes 0 0 0 0.0% Court 809,800 841,616 31,816 3.9% PW Operations 6,769,131 5,018,924 -1,750,207 -25.9% Codes 0 0 0 0.0% Development Center 2,887,583 3,207,042 319,459 11.1% Planning & Neighborho 962,684 535,170 -427,514 -44.4% Total 61,185,805 64,397,020 3,211,215 5.2%

Summary of Significant Assumptions and Changes • • • •

An average 2% performance based merit adjustment at approximately $700k Reorganization of Development and Communications functions Realignment of traffic and solid waste departments to PW Engineering An increase of 10%, or approximately $400k, for health insurance costs beginning at midyear (January 1, 2017)

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General Fund Expenditures by Type

FY16 Account Budget Personal Services 42,372,284 Supplies for Resale 141,000 Other Supplies/Service 8,237,357 Repairs & Maintenanc 1,383,654 Utilities 1,707,842 Fuel & Lubricants 696,139 Miscellaneous 148,390 Capital Outlay 0 Interdepartmental Cha 5,479,125 Transfers 1,020,014 Total 61,185,805

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FY17 Change from FY15 Budget $ % Budget 43,489,285 1,117,001 2.6% 235,000 94,000 66.7% 9,486,983 1,249,626 15.2% 1,398,571 14,917 1.1% 1,738,634 30,792 1.8% 564,153 -131,986 -19.0% 341,790 193,400 130.3% 675,000 675,000 n/a 5,899,392 420,267 7.7% 568,210 -451,804 -44.3% 64,397,018 3,211,213 5.2%

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General Fund Full Time Equivalents Workforce, or employee counts, is described as a ratio of full time equivalents (FTE) where one full time employee is estimated to work 2,080 hours annually or 2,912 for certain fire department personnel.

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

FY15 Budget 26.31 38.9 204 144 21 11.5 8.37 12.5 41.34 13.35 7.47 0 528.74

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FY16 Budget 27.39 33.8 202 144 22 10.25 0 11.29 38 0 27.68 9.7 526.11

FY17 Budget 26.99 41.1 202 153 22 10.5 0 11.87 34.2 0 33.86 4.01 539.53

Change from FY16 # % -0.4 -1.5% 7.3 21.6% 0 0.0% 9 6.3% 0 0.0% 0.25 2.4% 0 0.0% 0.58 5.1% -3.8 -10.0% 0 0.0% 6.18 22.3% -5.69 0.0% 13.42 2.6%

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Personnel Changes FY17 Personnel Changes* Reclassified Positions: Department Current Position Title New Position Title Airport Line Attendant Supervisor Assistant Airport Manager Airport Line Attendant PT Line Attendant FT Finance Procurement Contract Compliance Deputy Director of Finance Public Works Senior Engineering Technician Lead Engineering Technician ITS Senior GIS Analyst GIS Coordinator ITS Inventory and Records Specialist Administrative Assistant ITS Sr Network Administrator ITS Operations Supervisor Fleet Mechanic Mechanic/Parts Specialist Admin Communications Director Public Relations Professional Admin City Communications Officer Communications Strategist Police Evidence and Property Tech Police Systems Manager New Positions: Airport Airport Intern Development Center Development Technician ITS Database Administrator ITS System Support Specialist ITS Web Specialist Total Impact: Total General Fund Impact: * Amounts Include Benefit Costs

$Impact 4,252 19,776 21,731 5,465 3,600 2,000 5,000 3,500 29,000 5,000 77,838 103,000 60,000 58,800 398,962 296,714

Summary of Significant Assumptions and Changes • • • •

Airport positions were reclassified to reflect new job duties and responsibilities following infrastructure and runway improvements at the Airport ITS Reorganization plan to hire 3 additional FTE to improve capacity and service Approximately 60 employees are eligible for retirement benefits Cash liability to pay out unused vacation and sick time totals approximately $1.6m

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General Fund Reserve 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 FY16 budget process containing the information available at that time.

*Note*: FY16 Actuals are preliminary, unaudited, year end amounts. This table was updated after the ‘Review of Funds’

Until recently, General Fund revenues exceeded expenditures, as depicted in the following graph. The City Manager, Management Team, and staff have been working over the last few years to make the necessary structural adjustment to correct future defecits. Beginning in FY14 and continuing through FY16 with the City Manager’s two year plan, the City will reduce expenditures to levels that can be funded with reoccuring revenues. This will require reductions in personnel expenses and service expenditures. In FY16, the projected reductions amounts total approximately $2.1m with $1.5m of reductions coming from salaries, health insurance, overtime, and benefit costs. Following revenue growth and reduced expenditures, FY17 adjustments were made to reduce contingency items budgeted. Additionally, the FY17 request included use of approximately $890k from the reserve balance.

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General Fund Reserve Balance Policy In FY14 the City Council adopted a new fund balance policy. The adequacy of unrestricted fund balance in the general fund should be assessed based upon a governmentâ&#x20AC;&#x2122;s specific circumstances. The Government Finance Officers Association recommends, at a minimum, that general-purpose governments, regardless of size, incorporate in its financial policies that unrestricted fund balance in their general fund be no less than two average months of regular general fund operating revenues or regular general fund operating expenditures. If fund balance falls below the policy level it should be replenished within the subsequent year or in the case of an extraordinary expenditure three years.

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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 Cityâ&#x20AC;&#x2122;s departments.

Administration 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.

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 City Manager and operates as an 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.

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MUNICIPAL COURT

The Leeâ&#x20AC;&#x2122;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, two Probation Officers, Court Security Officer, Accounting Technician, Record Management Clerk, 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 9:00 a.m. prisoner arraignment docket is held on Tuesday of any week lacking a 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.

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GeneralFund Department Budgets 6: General DEVELOPMENT CENTER DEPARTMENT The Development Center Department is comprised of the an Administration Division, Business and Contractor Licensing Division, a Project Management Division, an Inspection Division, and a Review Division. Each division has a distinct part of assisting customers in successfully navigating each step of the City’s business and development related processes from pre-application to occupancy (start to finish).

The Administration Division provides administrative functions for the department and also provides staff support to the Land Clearance for Redevelopment Authority (LCRA), Lee’s Summit Missouri Municipal Building Authority (LSMMBA), Board of Appeals, as well as other economic development related boards and committees. The Business and Contractor Licensing Division assists customers through the business and contractor licensing processes. The Project Management Division consists of project managers that facilitate the “one stop shop” approach working alongside applicants to navigate and manage the business and development related processes. The Inspection Division is comprised of two groups: Building and Safety Inspection and Development Inspection. The Building and Safety Inspection group 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. The Development Inspection group inspects all developer-constructed infrastructures for compliance with City codes and makes recommendations for acceptance of the facilities as public.

The Review Division is comprised of three groups: Engineering Review, Planning Review and Plan Review/Permit Review. The Engineering Review group 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 Planning Review group provides support to the development community through administration of the Comprehensive Plan, special corridor planning studies, mapping, subdivision plat review, home occupations, variances, zoning approvals, and annual department report. The Plan Review/Permit Review division assists during the conceptual and planning stages of a project and reviews all construction documents to ensure code compliance prior to permit approval and issuance of building permits.

The Development Center Department is dedicated to working collaboratively with stakeholders to effectively align resources for successful outcomes through a customer focused approach. The mission of the Development Center Department is “Because Lee’s Summit means business, we’ve enthusiastically created a “one stop shop” for our customers to quickly navigate each step of the business and development process from start to finish. Our Development Center staff is passionate and dedicated to make good things happen for all of those doing business in Lee’s Summit.”

The department provides staff support for the Planning Commission, City Council, Board of Adjustments, Historic Preservation Commission, Community and Economic Development Committee, Community Development Block Grant 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.

In addition to coordinating customers’ needs with internal City departments, Development Center Department staff work closely with the City’s local partners in promoting business and economic development. Partner organizations include the Lee’s Summit Chamber of Commerce, the Lee’s Summit Economic Development Council, Downtown Lee’s Summit Main Street, Inc., and Boost Lee’s Summit.

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GeneralFund Department Budgets 6: General 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 and Contract Services provides semi-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 professional services, heavy equipment, small construction, 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.

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

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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.

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GeneralFund Department Budgets 6: General 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 II, one Assistant City Attorney I/Risk Manager, one Police Legal Advisor, 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.

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PLANNING AND SPECIAL PROJECTS Long Range Planning and Special Projects is a newly-created department that will provide long range planning, CDBG and grants administration and project management for special projects. Current Development Planning, Permit and Plan Review, Building Inspections, and Neighborhood Service (code enforcement) will be placed under the Development Services Department. This year’s budget cycle for Planning and Special Projects includes Administration, Grants Administration and CDBG, Long Range Planning and Special Projects.

The Administration Division is responsible for managing and directing the overall operations of the Department including development and monitoring of the Department’s budget, performance goals and objectives, setting Department policy, directing the amendment process of the UDO and serving as part of the City’s senior management team.

Long Range Planning and Grant Administration Division provides support to the development community through administration of the Comprehensive Plan, special corridor planning studies, mapping, demographic and statistical analysis, annual department report and CDBG administration.

The department provides staff support for the Planning Commission, City Council, Community and Economic Development 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 Special Projects participates in unique projects such as corridor studies, land use initiatives and targeted quadrant comprehensive plan reviews as needed.

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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.

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GeneralFund Department Budgets 6: General PUBLIC WORKS ENGINEERING The Public Works Engineering Division is comprised of the Administration Group, a Project Engineering Team, an Engineering Support Team, a Traffic Engineering Team, and a Construction Management Team. Funding is primarily from the General Fund, supplemented by transfers from the various enterprise and capital project funds for work directly related to those projects and programs.

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. Also included in this group is the City’s right-of-way agent.

The Project Engineering Team provides a wide range of professional engineering and technical services for the City. The team’s extensive engineering expertise allow many design projects to be completed inhouse, which saves the City money by not having to hire consultants for most projects. Technicians provide field and office support for records retention, surveying, drafting, GIS, inspections, customer service, development support, updating technology, and many other work technical support functions.

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 used to record pavement condition evaluations and forecast maintenance and budget needs. The pavement program works with other agencies and contractors to use improved paving and material technologies to extend pavement life.

Capital pavement management program also oversees the sidewalk programs to maintain and improve upon the over 350 miles of accessible routes maintained by the City.

The Traffic Team is responsible for design, operations, and maintenance of traffic control devices, street lighting, parking regulations, pavement marking and traffic safety programs. The Traffic Team is responsible for the long-range planning of transportation improvements in the City, coordinates transportation planning with the City’s Planning Department, supports Development Engineering Review, and prepares the City’s Thoroughfare Master Plan. The Traffic Team fabricates and installs traffic signage throughout the City; performs paint striping on City-owned parking lots and cross-walks; maintains and repairs 55 signalized intersections and 1,500 City-owned street lights, including 133 downtown street lights.

The Construction Management (CM) Team manages and inspects construction of road, stormwater, traffic, pavement management programs, water, and sanitary sewer capital projects. Duties generally include monitoring construction schedules and budgets, overseeing compliance with environmental and labor law requirements, inspecting construction for conformance to project plans and technical specifications, and communicating with members of the public affected by the construction project. The CM Team recently added a Field Engineering Inspector as the first step to establish a Right-of-Way Management group. This inspector provides extensive customer service to residents by monitoring contractors working in the public right-of-way. Typical work includes monitoring utilities, traffic control, and working with individual property owners on many issues impacting public infrastructure.

All of the Teams 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).

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GeneralFund Department Budgets 6: General PUBLIC WORKS OPERATIONS The Public Works Operations Division maintains public infrastructure including the transportation network and the storm water collection system. During the winter months, snow removal becomes the top priority. Funding is from the General Fund.

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 five main groups which include administration, stormwater, bridge and right-of-way, and street maintenance.

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, and maintenance on streets, alleys and Cityowned parking lots. The City currently has 1,029 lane miles of City-owned pavement.

The storm water group inspects, maintains, and repairs the 1,365,255 lineal feet of storm pipe as well as the 15,296 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 60 City maintained bridges as well as sidewalk maintenance, tree trimming, right-of-way mowing, weed spraying and litter pickup.

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7: Special Revenue Funds General

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.

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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.

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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.

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General 7: Special Revenue Funds 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 Leeâ&#x20AC;&#x2122;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.

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General 7: Special Revenue Funds 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, two fitness centers, aerobics studio, classroom (seating 25), 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.

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General 7: Special Revenue Funds 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 Leeâ&#x20AC;&#x2122;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.

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General 7: Special Revenue Funds 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, cycle studio, a natatorium with various aquatic features, and a child care area. 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.

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PARKS AND RECREATION FUND The Parks & Recreation fund is used to account for the maintenance of 30 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.

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SECTION 7B: OTHER SPECIAL REVENUE FUNDS

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BUSINESS AND INDUSTRY FUND YEAR BEGINNING JULY 1, 2016 FY 2011 ACTUAL REVENUES: Business & Industry Tax (Hotel) Penalty/Interest Transfers Contributions Interest

$

Total Revenues EXPENDITURES: Administrative Fees Payment Discount Interest Expense Transfer Shop Lee's Summit Advertising Campaign Contributions Downtown Mainstreet Inc (DLSMS) Downtown Mainstreet Inc: Downtown Masterplan LS Economic Development Council LS Chamber of Commerce Arts Commission Historic Preservation Grant Community Branding Total Expenditures

FY 2012 ACTUAL

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

334,472 $ 0 62,220

297,045 $ 91 62,220

310,884 $ 0 62,220

176

273

246

$

396,868 $

359,629 $

373,350 $

404,929 $

$

6,690 $ 5,898 13

6,293 $ 6,221 0

6,267 $ 6,194 0

0

0

60,000 0 250,916 40,780

0 $

Excess of Revenues Over (Under) Expenditures

364,297 $

32,571

FY 2017 BUDGET

435,398 $ 2,255 14,200

1,000

964

422,267 $

366,715 $

452,817 $

359,545

6,297 $ 6,792 0

6,297 $ 7,450 391

6,297 $ 6,204 0

5,772 $ 8,370 0

6,297 6,204 0

0

0

0

0

0

0

60,000 0 250,911 50,700

60,000 0 250,911 50,700

60,000 0 250,911 50,700

60,000 0 217,968 51,043

60,000 0 217,968 51,043

60,000 0 217,968 51,043

60,000 0 250,911 51,043

0

0

0

0 343,153 $

374,455

109,664

(14,910)

66

374,072 $

(14,496)

401,460 $ 6,545 14,200

FY 2016 PROJECTED

351,515 $ 0 14,200

374,125 $

342,603 $ 60 62,200

FY 2016 BUDGET

(722)

374,700 $

62

343,149 $

30,229

79,118

341,512 $

25,203

358,545 0 0 1,000

Fund Balance, Beginning of Year

$

29,322 $

61,893 $

47,397 $

46,675 $

76,904 $

156,022 $

156,022 $

265,686

Fund Balance

$

61,893 $

47,397 $

46,675 $

76,904 $

156,022 $

181,226 $

265,686 $

250,776

% of Total Expenditures to Ending Fund Balance

17.0%

12.7%

12.5%

20.5%

45.5%

53.1%

77.4%

67.0%

The Business and Industry Tax fund was created to account for the license tax on certain gross receipts of hotels, motels and similar places of business, in an amount equal to 5% of gross daily rental receipts derived from transient guests for sleeping accommodations. The proceeds are used to promote the general economic welfare of the City including attraction and retention of business and industry to the community and the promotion and provision of facilities for tourism, conventions, and visitors. Businesses are allowed to deduct 2% processing fee if their tax is remitted before the 20th of the month. The 7 hotel/motels in the City have a total of 493 rooms with an average occupancy rate of 52% for fiscal years 2013, 2014, and 2015.

Average Occupancy Rate:  FY11 - 55.8%  FY12 - 55.1%  FY13 - 54.0%  FY14 - 49.1%  FY15 - 52.2% Revenues: FY17 assumes a 2% increase from FY16 Budget. Revenue projections are based on the fundamentals of fund sources as seasonality and large one-time payments can inject unpredictability into the revenues. Since FY11, the City's General Fund transferred funds to the Business and Industry Fund to prevent a negative fund balance. For FY17, that transfer has been discontinued.

Expenditures: FY17 assumes the Business & Industry tax will fully support the expenditures and administration of the fund. The expenditures include the full contribution to Downtown Mainstreet Inc. and Lee's Summit Chamber of Commerce. Contribution to LS Economic Development Council has been restored to FY14 levels. The fund balance at year end is projected to be 44.4% of total expenditures.

REVENUES, EXPENDITURES & FUND BALANCE $500,000 $450,000 $400,000 $350,000 REVENUES:

$300,000

EXPENDITURES:

$250,000

Fund Balance

$200,000 $150,000 $100,000 $50,000 $ACTUAL FY 2011

ACTUAL FY 2012

ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2015

BUDGET FY 2016

PROJECTED FY 2016

BUDGET FY 2017

FISCAL YEAR

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7: Special Revenue Funds COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ENTITLEMENT FUND YEAR BEGINNING JULY 1, 2016 FY 2012 ACTUAL REVENUES: Intergovernmental revenues: Contributions- Federal Other Total Revenues EXPENDITURES: Contributions expense Interest on Bonds Total Expenditures

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 BUDGET

FY 2015 PROJECTED

FY 2015 ACTUAL

FY 2016 BUDGET

FY 2016 PROJ

FY 2017 REQUESTED

$

386,146 $

332,952 $

238,227 $

288,907 $

288,907 $

250,653 $

-

$

-

$

250,653

$

386,146 $

332,952 $

238,227 $

288,907 $

288,907 $

250,653 $

-

$

-

$

250,653

$

518,103 $ 0 518,103 $

205,357 $ 0 205,357 $

216,488 0 216,488 $

251,003 0

251,003 0

249,003 0

372,008 0

372,008 0

369,229 0

251,003 $

251,003 $

249,003 $

372,008 $

372,008 $

369,229

$

Excess of Revenues Over (Under) Expenditures

(131,957)

127,595

21,739

37,904

37,904

1,650

(372,008)

(372,008)

(118,576)

Fund Balance, Beginning of Year

$

(28,146) $

(160,103) $

(32,508) $

(10,769) $

(10,769) $

(10,769) $

(9,119) $

(9,119) $

(381,127)

Fund Balance

$

(160,103) $

(32,508) $

(10,769) $

27,135 $

27,135 $

(9,119) $

(381,127) $

(381,127) $

(499,703)

This fund was created to account for money received from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant Program. The City "passes through" these funds to other organizations based on criteria established by HUD and the City Council.

REVENUES, EXPENDITURES & FUND BALANCE

REVENUES:

$600,000

EXPENDITURES:

$500,000

Fund Balance

$400,000 $300,000 $200,000 $100,000 $$(100,000) $(200,000) $(300,000) $(400,000) $(500,000) ACTUAL FY 2012

ACTUAL FY 2013

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ACTUAL FY 2014

BUDGET FY 2015 FISCAL YEAR

PROJECTED FY 2015

ACTUAL FY 2015

BUDGET FY 2016

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VIOLENCE AGAINST WOMEN GRANT FUND YEAR BEGINNING JULY 1, 2016 FY 2012 ACTUAL

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 BUDGET

FY 2016 PROJECTED

FY 2017 BUDGET

REVENUES: Federal Contribution Interest

$

208,660 $ 356

225,093 $ 325

138,389 $ 21

106,684 $ 1,451

304,334 $

304,334 $

106,684

Total Revenues

$

209,016 $

225,418 $

138,410 $

108,135 $

304,334 $

304,334 $

106,684

$

175,785 $

42,543 $

48,107 $

50,005 $

152,167 $

152,167 $

57,000

$

175,785 $

42,543 $

48,107 $

50,005 $

152,167 $

152,167 $

57,000

90,303

58,130

152,167

152,167

49,684

EXPENDITURES: Program Expenses Interest Total Expenditures Excess of Revenues Over (Under) Expenditures

33,231

182,875

Fund Balances, Beginning of Year

$

(22,280) $

10,951 $

193,826 $

257,392 $

315,522 $

315,522 $

467,689

Fund Balances, End of Year

$

10,951 $

193,826 $

284,129 $

315,522 $

467,689 $

467,689 $

517,373

This fund was established to account for the revenue and expenditure pass through for the Violence Against Women Grant Program in conjunction with Hope House, Inc.

REVENUES, EXPENDITURES AND FUND BALANCE

REVENUES: EXPENDITURES: Fund Balances, End of Year

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$ACTUAL FY 2012

ACTUAL FY 2013

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

ACTUAL FY 2014

ACTUAL FY 2015 FISCAL YEAR

BUDGET FY 2016

PROJECTED FY 2016

BUDGET FY 2017

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SECTION 8: CAPITAL PROJECT FUNDS

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8: Capital Project Funds General

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.

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

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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 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-ofway 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.

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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 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

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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 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

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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. 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.

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.

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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.

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.

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

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CAPITAL IMPROVEMENT PLAN COSTS

The 2016-2020 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 $284,700,000.

2017-2021 CIP SUMMARY (Costs in $1000s) Project Public Works Programs Water Utilities Programs Airport Bridges, Streets and Signals* Facilities Parks and Recreation Solid Waste Storm Water Sanitary Sewer Water Total

Prior Yrs. 17,505 73,080 1,000 1,550 15,800 7,651 18,925 135,511

2017 6,338 364 9,931 24,726 260 2,100 1,924 2,575 5,610 53,828

2018 6,046 385 6,937 19,649 6,710 1,413 5,530 3,654 50,324

2019 6,173 1,387 5,023 6,161 3,075 1,013 1,850 3,918 28,600

2020 6,195 744 4,282 1,000 1,100 4,581 17,902

2121 6,082 432 3,705 4,584 3,000 17,803

Total 30,834 3,312 47,383 124,616 1,260 13,435 4,350 15,800 23,290 39,688 303,968

Public Works Programs Water Utilities Programs 13%

10%

1%

Airport Bridges, Streets and Signals*

8%

16%

5%

Facilities Parks and Recreation

2%

Solid Waste

4%

Storm Water 41%

Sanitary Sewer Water

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Summary of Capital Projects Project #

Previous Funding Balance

FY17 Funding

Future Years' Funding Balance

Lifetime Budget (CIP)

F315 Sewer Tap Fund 146

SPL-Scruggs Rd PS EFHB

773,892

0

773,892

1,262,000

196

CC Intrcptr-WW & SH

559,045

0

559,045

565,000

285

Boggs Hollow Meter Structure

300,000

0

300,000

300,000

341

SPL Inter Impr@Crystal View Es

139,004

75,000

214,004

300,000

1,771,941

75,000

1,846,941

2,427,000

9,736

0

9,736

115,000

F316 Water Construction 27

Jefferson-Persels/Stuart

36

LS Rd-Colbern to City Lmt

322,047

0

322,047

912,000

73

Chipman-Bent Tree/View Hi

329,536

0

329,536

639,000

144

Operation Facility-Site Acquis

580,798

500,000

1,080,798

1,150,000

155

SCADA Radio Communications

298,779

0

298,779

300,000

200

Wtr Main Rehab FY15

1,279,392

0

1,279,392

2,450,000

202

Wtr Main Rehab FY16-O'B,etc

1,882,463

0

1,882,463

1,900,000

205

Water Meter Replacement

1,007,770

0

1,007,770

2,000,000

289

Water Operations Facility Demo

75,000

0

75,000

75,000

5,785,520

500,000

6,285,520

9,541,000

F317 Sewer Construction Fund 73

Chipman-Bent Tree/View Hi

113,910

0

113,910

134,000

144

Operation Facility-Site Acquis

650,000

500,000

1,150,000

1,150,000

160

CC Wtrshd-CC16,CC20 Priv I/I R

584,000

0

584,000

584,000

191

Sanitary Sewer Rehab-Relinin/M

2,910,885

1,000,000

3,910,885

6,960,000

339

Wastewater Flow Monitoring

60,117

150,000

210,117

300,000

340

Small Main Rplmt Program

918,235

0

918,235

2,000,000

5,237,147

1,650,000

6,887,147

11,128,000

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General 8: Capital Project Funds Summary of Capital Projects Project #

Previous Funding Balance

FY17 Funding

Future Years' Funding Balance

Lifetime Budget (CIP)

F321 Airport Construction 14

Earthwork18-36&WestParExt

9,015,176

0

9,015,176

8,317,000

29

Land Acq ALP Prop Phase 2

6,911,060

500,000

7,411,060

5,500,000

169

Const Pavement Runwy 18-36

1,632,269

6,560,000

8,192,269

8,600,000

170

Const Pavement Taxiway Ext

820,000

605,000

1,425,000

5,725,000

174

Ext N Parallel Taxiwy

152,000

0

152,000

601,000

327

FAA Review/Testing NavAid Relo

1,085,262

0

1,085,262

557,000

19,615,768

7,665,000

27,280,768

29,300,000

5,119,269

0

5,119,269

9,599,000

10,385,974

0

10,385,974

15,361,000

8,311

1,520,000

1,528,311

9,641,000

F322 Capital Imprvmt Sales Tax 27

Jefferson-Persels/Stuart

36

LS Rd-Colbern to City Lmt

73

Chipman-Bent Tree/View Hi

185

Ward Rd-150 to Raintree Pkwy

2,801,659

5,809,000

8,610,659

8,875,000

390

Arterial St Curb Replacement

3,304,782

0

3,304,782

4,200,000

417

Gateway Dr-Delta Sch/Georgian

-100

350,000

349,900

850,000

21,619,895

7,679,000

29,298,895

48,526,000

F324 Road & Bridge Improvement 6

Blackwell Rd Interchange

18,824,832

6,143,000

24,967,832

24,968,000

26

Indep/Town Ctr Intersectn

579,427

0

579,427

1,760,000

38

Murray Road Bridge Replac

440,164

0

440,164

850,000

60

Traffic Sgnl Comm Mstr Pl

191,628

0

191,628

295,000

135

Main Street Bridge over 2nd St

117,087

0

117,087

120,000

182

Pryor Rd/Longview Signal

144,627

0

144,627

350,000

183

Thoroughfare Master Plan

248,318

0

248,318

250,000

329

Chipman Bridge Rehab over UPRR

176,989

0

176,989

180,000

20,723,071

6,143,000

26,866,071

28,773,000

F327 Park Development Fund 330

Bailey Farm Interpretive Ctr

250,000

500,000

750,000

2,625,000

331

Practice Field Improvements

250,000

50,000

300,000

300,000

332

Legacy Park Trail Connector

50,000

0

50,000

50,000

335

North Lea McKeighan Park Impro

485,786

1,100,000

1,585,786

2,600,000

336

Park W/Eagle Crk/Pryor Rd Trl

200,000

0

200,000

400,000

337

Hartman Park Improvements

300,000

100,000

400,000

400,000

1,535,786

1,750,000

3,285,786

6,375,000

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General 8: Capital Project Funds Summary of Capital Projects Project #

Previous Funding Balance

FY17 Funding

Future Years' Funding Balance

Lifetime Budget (CIP)

F338 Storm Water Improvements 54

Stormwater Phase I

4,182,205

0

4,182,205

15,800,000

4,182,205

0

4,182,205

15,800,000

3,465,839

0

3,465,839

13,199,000

3,465,839

0

3,465,839

13,199,000

302,243

260,000

562,243

1,260,000

302,243

260,000

562,243

1,260,000

123,364

6,144,000

6,267,364

16,632,000

123,364

6,144,000

6,267,364

16,632,000

-51,131

576,000

524,869

1,152,000

-51,131

576,000

524,869

1,152,000

1,800

0

1,800

1,800

F343 Tudor Rd Improvemnts 2010 63

Tudor Road 2010

F346 Cultural Arts 2013 259

Cultural Arts Downtown Campus

F349 US 50/Rte 291 S Intrch Bonds 315

US 50 Hwy/Rte 291 South Intrch

F520 Solid Waste Management 401

Transfer Station

F620 ITS Services 235

Digitize Wk Comp Forms/Sire

238

Updated IT Strategic Plan

10,576

0

10,576

18,500

239

Performance Excellence

10,495

0

10,495

24,000

245

Two-Factor Authentication-PD

3,810

0

3,810

3,900

295

Office 2007 End of Life

103,706

0

103,706

103,990

345

Fire Apparatus Mobile Computng

33,315

0

33,315

85,000

348

Online Application

19,883

0

19,883

21,376

349

POS Credit Card terminals

4,845

0

4,845

7,196

350

City Website redo

9,529

0

9,529

18,655

352

Sire Research

1,960

0

1,960

3,173

353

Lawson research/extended Maint

28,039

0

28,039

31,000

355

POS Credit Card terminals

14,806

0

14,806

14,896

358

Backflow Test record managemen

25,598

0

25,598

25,785

360

Network Security Audit

24,000

0

24,000

24,000

292,361

0

292,361

383,271

84,604,009

32,442,000

117,046,009

184,496,271

Rollover Totals

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General 8: Capital Project Funds

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 2017-2021 CIP totals $303,968,000 (including funding from prior years), up from $284,700,000 in the 2016-2020 plan. The increase in the total is due primarily to the reallocation of unallocated reserves from excess funding that pooled as a result of improved economic conditions and a favorable bidding climate. Significant changes to the CIP include:

Completed Projects •

Arterial Streetlights, Phase 2

•

Chipman Road & Commerce Drive Signal

•

Hook Road, Ward Road to Route 291

•

Pryor Road Shoulders, Longview to Hook

•

Second & Main Signal Replacement

•

2010 Sidewalk Improvements

•

Police Training and Detention Facility

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General 8: Capital Project Funds New Projects •

FAA Review and Testing for Navaid Relocation

•

West Apron Construction

•

Chipman Road Bridge Rehabs over UPRR

•

South M291 Interchange with US50

•

North Lea McKeighan Park Improvements

•

Lowenstein Trail Renovations

•

Lowenstein Park Renovations

•

Bailey Farm Park Interpretive Center

•

Sprayground Sites (South and East)

•

Summit Park Shelter Replacement

•

Legacy Park Trail Connector

•

Legacy Park Practice Field and Game Field Improvements

•

Park West/Eagle Creek/Pryor Road Trail Connector

•

Wastewater Flow Monitoring

•

Small Sewer Main Replacement Program

•

South Prairie Lee Interceptor Sewer at Crystal View Estates

•

Water Main Rehabilitation and Upsize

•

South Terminal Discharge Main

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

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SECTION 9: PROPRIETARY FUNDS

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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 Workerâ&#x20AC;&#x2122;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.

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SECTION 9B: INTERNAL SERVICE FUNDS

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9: Proprietary Funds

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 departmentâ&#x20AC;&#x2122;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.

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9: Proprietary Funds 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.

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9: Proprietary Funds 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.

The functions managed by ITS are: 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 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, City of Lee’s Summit Annual Budget FY17

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9: Proprietary Funds 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.

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SECTION 9C: ENTERPRISE FUNDS

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9: Proprietary Funds 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 a rate schedule to support a sustainable utility.

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SOLID WASTE MANAGEMENT FUND The Solid Waste Management Fund accounts for revenues and expenses related to the City's Resource Recovery Park; however, FY17 is the first full year that a private contractor has operated the landfill. Due to the contract for services, revenues and expenses have changed drastically from the previous fiscal years.

The Resource Recovery Park (RRP), 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, and a Household Hazardous Waste disposal area. The entire facility is now operated by a private contractor. An additional 80 acres of the site is set aside as a soil borrow area. The Cityâ&#x20AC;&#x2122;s two recycling centers, one at the RRP and one near the Airport, both closed in Feb. 2016.

A Solid Waste Superintendent is the only staff member for the Solid Waste Division of the Public Works Department. This staff member is responsible for oversight of the contract for operations of the landfill, customer service related to solid waste issues, and eventually closure of the site and post-closure maintenance of the landfill.

Revenue is tied to the contract for operations, which took effect March 1, 2016. The Solid Waste Fund receives $50,000 per month for 24 months for closure/post-closure accrual payments. The Fund also receives $75,000 per year for two years to cover costs of having a Solid Waste employee provide oversight of the contractor. A nominal $2,000 per year is also paid by the contractor for the lease of personal property on site.

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.

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9: Proprietary Funds 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 an inter-fund loan from the General Fund. The inter-fund loan was used to refund prior debt issues that were at significantly higher interest rates. This inter-fund loan is being repaid on a monthly basis over the next five years at a fixed interest rate of 1%.

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.

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SHORT-TERM DISABILITY FUND YEAR BEGINNING JULY 1, 2016

REVENUES: Charges for services Transfers Interest Total Revenues

$

EXPENDITURES: Claims Other Total Expenditures

$

Excess of Revenues Over (Under) Expenditures

FY 2011 ACTUAL

FY 2012 ACTUAL

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 BUDGET

33,377

31,485

32,372

30,682

32,238

33,221

33,221

34,146

492

243

396

197

611

515

515

0

33,869 $

31,728 $

32,768 $

30,879 $

32,849 $

33,736 $

33,736 $

34,146

36,152 -

30,914

22,306

7,874

12,921

33,533 -

33,533 -

39,533 -

36,152 $

30,914 $

22,306 $

7,874 $

12,921 $

33,533 $

33,533 $

39,533

203

203

(5,387)

(2,283)

814

10,462

23,005

19,928

FY 2016 PROJECTED

FY 2017 BUDGET

Fund Balance, Beginning of Ye $

82,486 $

80,203 $

81,017 $

91,479 $

114,484 $

134,412 $

134,412 $

134,615

Fund Balance, End of Year

80,203 $

81,017 $

91,479 $

114,484 $

134,412 $

134,615 $

134,615 $

129,228

$

This fund was established to provide compensation to full-time City employees who are incapacitated and who have exhausted all paid time, but are not yet eligible for long-term disability benefits. Beginning July 1, 2009 the short-term disability policy was updated stating all earned time, including vacation and personal, must be exhausted before short-term disability is available. Since the policy change, average claims paid from FY10 through FY15 is $21,675. The Fiscal Year 2017 contribution rate of $50 per Full-time Employee experienced no change from the Fiscal Years 2015 or 2016 contribution rate. The target fund balance is 200% of paid claims.

REVENUES, EXPENDITURES & FUND BALANCE

Revenues

Expenses

Fund Balance

$160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2016

FY 2017

FISCAL YEAR

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9: Proprietary Funds

CLAIMS AND DAMAGES RESERVE TRUST FUND YEAR BEGINNING JULY 1, 2016 FY 2012 ACTUAL Revenues: Refunds Premiums Transfer in: Other Funds Interest Income Miscellaneous Total Revenues

$

Expenditures: Transfers Out Special Assessments Transfer Out Claims and Professional expenses Professional Fees Enterprise Resource Planning (ERP) Total Expenditures

$

Excess of Revenues Over (Under) Expenditures

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 BUDGET

FY 2016 PROJECTED

FY 2017 BUDGET

75,000 655 -

75,000 820 -

150,000 11,398 -

885,783 1,238 -

896,997 500 -

896,977 500 -

597,091 0 -

75,655 $

75,820 $

161,398 $

887,021 $

897,497 $

897,477 $

597,091

41,724 -

113,252 -

193,211 -

778,300 -

875,000 -

875,000 -

875,000 -

41,724 $

113,252 $

193,211 $

778,300 $

875,000 $

875,000 $

875,000

33,931

(37,432)

(31,813)

108,721

22,497

22,477

(277,909)

0

0

0

0

0

0

0

Transfers: Transfer In: Excess Worker's Comp Fund Fund Balance, Beginning of Year

$

52,235 $

86,166 $

48,734 $

16,921 $

125,642 $

125,642 $

148,139

Fund Balance, End of Year

$

86,166 $

48,734 $

16,921 $

125,642 $

148,139 $

148,119 $

(129,770)

The Claims and Damages Reserve Fund accounts for expenses associated with liability and property claims. Claims from all City departments up to the City’s self insured retention of $50,000 per occurrence are paid from the fund.

Funding is determined through loss history to cover anticipated claims and damages expenses each budget year. City departments contribute a baseline amount of $5,000 to the fund annually, which accounts for $75,000. The remaining amount, currently established at $75,000, is funded through claims history analysis. Each department with claims history for the past three years is assigned a pro-rata share of the remaining $75,000. This method assures contribution from all City departments while assessing risk costs appropriately based on actual losses incurred.

REVENUES, EXPENDITURES & FUND BALANCE

Revenues

$1,000,000

Expenses

Fund Balance

$800,000

$600,000

$400,000

$200,000

$ACTUAL FY 2012

ACTUAL FY 2013

$(200,000)

City of Lee’s Summit Annual Budget FY17

ACTUAL FY 2014

ACTUAL FY 2015

BUDGET FY 2016

PROJECTED FY 2016

BUDGET FY 2017

FISCAL YEAR

Page 200 of 225

9: Proprietary Funds WORKERS COMPENSATION SELF-INSURANCE YEAR BEGINNING JULY 1, 2016 FY 2013 ACTUAL REVENUES: Other Revenue/Refunds Premiums Interest Transfers In Total Revenues

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 BUDGET

FY 2016 PROJECTED

FY 2017 BUDGET

FY 2018 Projected

FY 2019 Projected

FY 2020 Projected

$

8,570 422,007 15,188 445,765 $

8,170 460,698 10,890 479,758 $

49,546 895,539 11,210 956,295 $

904,402 7,757 912,159 $

904,402 7,757 912,159 $

951,167 7,757 958,924 $

904,402 7,757 912,159 $

904,402 7,757 912,159 $

904,402 7,757 912,159

$

569,729 239,204 40,055 117,627 966,615 $

169,882 82,719 34,871 162,985 450,457 $

247,757 208,121 35,163 192,834 683,875 $

653,652 30,000 245,700 929,352 $

653,652 180,200 30,000 65,500 929,352 $

653,652 30,000 245,700 929,352 $

675,795 50,000 32,696 151,511 910,002 $

675,795 50,000 32,696 151,511 910,002 $

675,795 50,000 32,696 151,511 910,002

(17,193)

(17,193)

29,572

2,157

2,157

Fund balances, Beginning of Year

$

1,522,407 $

1,001,557 $

1,030,858 $

1,303,278 $

1,303,278 $

1,286,085 $

1,315,657 $

1,317,814 $

1,319,971

Fund balances, End of Year

$

1,001,557 $

1,030,858 $

1,303,278 $

1,286,085 $

1,286,085 $

1,315,657 $

1,317,814 $

1,319,971 $

1,322,128

EXPENDITURES: Claims and Expenses Prior Year Claim Settlements Professional Fees and Administrative Costs Insurance (Excess and State Fees) Prior Period Adjustment Total Expenditures Excess of Revenues Over (Under) Expenditures

(520,850)

29,301

272,420

2,157

This fund was established to account for the monies necessary to self-insure the City's Workers Compensation claims. In January 2011, an actuarial analysis identified the following: - Self-insured retentions (beginning fund balance): FY 13-14 $643,918 (discounted reserves at 90% confidence, Bornhuetter-Ferguson technique*); - Funding (total revenues); discounted funding at 90% confidence); FY 12-13 $789,652; FY13-14 $649,616; FY14-15 $675,795; FY15-16 $904,402; FY2016-17 $951,167 The continuing efforts to reduce frequency of claims and contain claim costs through negotiated discounts on medical expenses and using modified duty return to work resulted in lower overall damages and claims expense.Included in expenses is a line item for prior year claim expense. Professional Fees and Administrative Costs include state-required third party administrative fees and expenses for the discounted medical health provider network. The Insurance expense line includes the state required Self-Insurer Bond, Excess Insurance coverage Premium, Worker's Comp Tax and the 2nd Injury Fund Surcharge.

Funding for upcoming and each year premiums (amounts assessed to departmental budgets) are adjusted to bring the fund balance in line with the projected retentions. Premium amount is divided into departments based on prior year's percentage of use. Premiums for fiscal year 2011-2012 increased $49,478 from the fiscal year 2010-2011 budget. No premium increase was budgeted for fiscal year 2012-2013.

Interest revenues have been estimated at an average rate of 1% for Fiscal Year 2012 and .75% for fiscal year 2013.

Beginning in FY15, Workers Compensation budget amounts were calculated to recover all projected costs. This was done to maintain the current fund balance and reserves. *Bornhuetter-Ferguson technique estimates ultimate losses using a combination of expected losses (payroll x expected loss cost) and loss development techniques

REVENUES, EXPENDITURES & FUND BALANCE REVENUES:

EXPENDITURES:

Fund Balance

$1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2015

BUDGET FY 2016

PROJECTED FY 2016

BUDGET FY 2017

FISCAL YEAR

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9: Proprietary Funds

UNEMPLOYMENT TRUST FUND YEAR BEGINNING JULY 1, 2016 FY 2013 ACTUAL Revenues: Premiums Special Assessment Interest

$

Total Revenues Expenditures: Claims paid Third Party Administrator Expense Total Expenditures

FY 2014 ACTUAL

-

$

FY 2015 ACTUAL

-

$

FY 2016 BUDGET

FY 2016 PROJECTED

25,868 $

20,038 $

411

FY 2017 BUDGET

FY 2018 Projected

FY 2019 Projected

FY 2020 Projected

20,038

29,268

25,823

25,823

25,823

315

315

0

483

483

483

922

646

$

922 $

646 $

26,279 $

20,353 $

20,353 $

29,268 $

26,306 $

26,306 $

26,306

$

25,434 $ 1,305

38,580 $ 2,070

15,285 $ 2,400

30,557 $ 1,705

30,557 1,705

30,557 1,705

32,191 1,740

32,191 1,740

32,191 1,740

$

26,739 $

40,650 $

17,685 $

32,262 $

32,262 $

32,262 $

33,931 $

33,931 $

33,931

(2,994)

(7,625)

(7,625)

(7,625)

Excess of revenues over (under) expenditures

(25,817)

(40,004)

8,594

(11,909)

(11,909)

Fund balance, beginning of year

$

129,950 $

104,133 $

64,129 $

64,129 $

64,129 $

52,220 $

49,226 $

41,601 $

33,976

Fund balance, end of year

$

104,133 $

64,129 $

72,723 $

52,220 $

52,220 $

49,226 $

41,601 $

33,976 $

26,351

This fund was established to provide a self-insurance mechanism to fund liabilities related to unemployment claims filed by former City employees. Fiscal year 2016-17 funding established at $30 annually per employee and seasonal employees at $30 per month employed.

Interest has been calculated for fiscal year 2016-17 at .5% on the fund balance at the end of the preceding fiscal year.

REVENUES, EXPENDITURES & FUND BALANCE Revenue

Expenses

Fund Balance

$150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $ACTUAL FY 2011

ACTUAL FY 2012

ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2015

BUDGET FY 2016

PROJECTED FY 2016

BUDGET FY 2017

Projected FY 2018

Projected FY 2019

Projected FY 2020

FISCAL YEAR

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SECTION 10: DEBT SERVICE FUNDS

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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 semiannual 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 cityâ&#x20AC;&#x2122;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.

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10: Debt Service Funds General

GENERAL OBLIGATION DEBT SERVICE FUND YEAR BEGINNING JULY 1, 2016

FY 2011 ACTUAL REVENUES: Taxes (Net Bad Debt) Interest Penalty/Interest Bond Proceeds Refunds & Reimbursements Transfer In Total Revenues

$

EXPENDITURES: County Collection Fees Debt Service: Principal Retirement Interest & Fiscal Charges Total Expenditures

FY 2012 ACTUAL

7,781,541 $ 63,179 36,487

7,601,638 $ 58,147 43,210

$

0 874,981 8,756,188 $

$

133,561 $

$

Excess of Revenues Over (Under) Expenditures

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 BUDGET

7,984,207 $ 48,147 50,248 61,350 0

8,162,690 $ 45,000 41,250

8,162,690 $ 45,000 41,250

8,088,635 45,000 41,250

0 0 7,702,995 $

7,909,356 $ 62,163 16,547 82,461 544

23,790,896 $

8,071,071 $

8,143,952 $

8,248,940 $

8,248,940 $

8,174,885

130,044 $

132,284 $

135,153 $

136,101 $

140,603 $

140,603 $

140,603

6,600,000 1,079,180

21,660,000 1,187,203

6,200,000 1,543,570

6,210,000 1,483,069

7,959,337 $

7,809,224 $

22,979,487 $

7,878,723 $

7,829,170 $

(106,229)

811,409

192,348

9,500,000 1,450,410

314,782

Fund Balances, Beginning of Year

$

5,072,856 $

5,869,707 $

5,763,478 $

6,574,887 $

6,767,235 $

Fund Balances, End of Year

$

5,869,707 $

5,763,478 $

6,574,887 $

6,767,235 $

7,082,017 $

DEBT SERVICE LEVY Per $100 Assessed Valuation

2010-11 Actual

FY 2017 REQUESTED

8,027,401 $ 59,848 39,293 15,659,417 4,937

6,630,000 1,195,776

796,851

FY 2016 PROJECTED

2011-12 Actual

2012-13 Actual

2013-14 Actual

2014-15 Actual

9,500,000 1,450,410

6,570,000 1,683,900

11,091,013 $

11,091,013 $

(2,842,073)

(2,842,073)

7,082,017 $

8,394,503

(219,618)

7,082,017 $

4,239,944

4,239,944 $ 4,239,944 $ 381,149 0 0.04898117 0.00000000

4,020,326 (74,055) (0.00907238)

2015-16 Budget

2015-16 Projected

2016-17 Requested

$

0.4697 $

0.4697 $

0.4697 $

0.4697 $

0.4697 $

0.4697 $

0.4697 $

0.4697

Assessed Valuation

$

1,654,009,573 $

1,620,849,484 $

1,638,685,805 $

1,692,175,370 $

1,686,144,194 $

1,792,337,036 $

1,792,337,036 $

1,844,106,043

$ Growth

$

(1,023,071) $

(33,160,089) $

36,461,607 $

53,489,565 $

(6,031,176) $

106,192,842 $

% Growth Allowance for Uncollectables

-

$

51,769,007

-0.06%

-2.00%

2.25%

3.26%

-0.36%

6.30%

0.00%

2.89%

2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

The General Obligation Debt Service Fund is used to account for the annual debt service on General Obligation (GO) bonds issued by the City. Expenditures from the 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 annual payments.

Interest income on the reserve amounts provides the remainder of revenue. $5,000,000 of debt was issued in both December 2009 and December 2010. Additional debt issuance is anticipated in FY 2011-12 as authorized in the November 2007 election. $10,075,000 in bonds authorized but not yet issued will be issued over the next 2 years (not included in the above projections). $37.4 million of new bonds were authorized on November 2, 2010 and are anticipated to be issued over the next 3 years (also not included in the above projections). In April 2013, voters approved a $7.5m bond issue for a cultural arts campus and downtown street improvements.

In FY17, a no tax increase bond election has been scheduled for the November election which, if approved, would authorize a debt issuance of approximately $14.5m to fund public safety improvements.

This would include replacement of Fire Station #3, an upgrade of the Public Safety radio system, and interconnectivity between City facilities.

Interest Revenue has been calculated at an annual rate of 1% for Fiscal Year 2013-14 and .5% for 2014-15.

REVENUES, EXPENDITURES & FUND BALANCE Revenues

$25,000,000

Expenditures Fund Balance

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$ACTUAL FY 2011

ACTUAL FY 2012

ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2015

BUDGET FY 2016

PROJECTED FY 2016

REQUESTED FY 2017

FISCAL YEAR

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

Page 205 of 225

10: Debt Service Funds General

DEBT SERVICE REQUIREMENTS TO MATURITY General Obligation Bonds PUBLIC SAFETY Radios & Design

DATED 6/1/11 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

CURBS

STREETSCAPE Refunding 2013B

CITY HALL STORM WATERPUBLIC SAFETY Refunding Police Facilty 2013B 2013A 2013A

DATED 6/1/11

DATED 2/1/13

DATED 2/1/13

DATED 2/1/13

2,200,000 2,300,000

245,000 245,000 180,000 160,000 85,000 85,000 100,000 87,000

1,090,000 1,130,000 1,170,000 1,230,000 1,285,000 1,325,000 1,405,000 1,453,000

320,000 280,000 825,000 825,000 490,000 520,000 520,000

CURBS 2013A

DATED 2/1/13

DATED 2/1/13

2,645,000 1,715,000 1,225,000 2,850,000 2,925,000

TOTAL

$0

$4,500,000

$1,187,000

$10,088,000

$3,780,000

$7,000,000

$4,360,000

Interest Rates

2.00%-3.00%

2.00-3.00%

3.00-4.00%

3.00%-4.00

2.00%-3.00%

2.00%-3.00%

2.00%-3.00%

Pryor Road

Strother

Highway 50

Storm Water

TUDOR ROAD Strother Road Orchard Street

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

2013A

2013A

2013C

2013C

2015A

2015A

2015A

DATED 2/1/13

DATED 2/1/13

DATED 10/24/13

DATED 10/24/13

DATED 10/24/13

DATED 10/24/13

DATED 10/24/13

380,000 405,000 415,000 440,000 470,000 495,000

260,000 260,000 260,000 255,000 365,000

100,000 100,000 300,000

180,000 110,000 130,000 480,000

465,000 465,000 465,000

$2,605,000

$1,400,000

$500,000

$900,000

$1,395,000

2.00%

2.00%

345,000 355,000 355,000 455,000

450,000

990,000 1,550,000

$2,500,000

$2,000,000

2.00%-3.00% 2.00%-3.00% 3.00%-5.00%

PAYMENTS DURING FY

FOR ALL GENERAL OBLIGATION BONDS PRINCIPAL INTEREST

3.00%-5.00% 2.00%-3.00%

TOTAL

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

6,210,000 5,140,000 5,295,000 3,545,000 3,690,000 3,040,000 2,780,000 2,380,000 2,445,000 2,645,000 2,705,000 2,775,000 2,850,000 2,925,000

1,433,370 1,424,850 1,270,150 1,087,300 975,300 821,200 699,600 592,200 505,750 417,000 337,650 256,500 172,250 87,750

7,643,370 6,564,850 6,565,150 4,632,300 4,665,300 3,861,200 3,479,600 2,972,200 2,950,750 3,062,000 3,042,650 3,031,500 3,022,250 3,012,750

TOTAL

$42,215,000

$8,647,500

$50,862,500

BALANCE @6/30

42,215,000 37,075,000 31,780,000 28,235,000 24,545,000 21,505,000 18,725,000 16,345,000 13,900,000 11,255,000 8,550,000 5,775,000 2,925,000 0

2015 amounts not included in totals for General Obligation Bonds.

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

Page 206 of 225

10: Debt Service Funds General

City of Lee's Summit, Missouri Computation of Legal Debt Margin June 30, 2016 General Obligation Bonds Ordinary (1)

City Hall 2013 (orig 2003) Downtown Streets 2013(orig 2003) Police Station Storm Water, 2013A Curbs 2011 Curbs 2013A Tudor Road 2013A Strother 2013A Road Imp (Orchard & Pryor) 2013C 50 Highway and 291 Highway 2015A Storm Water 2015A Strother 2015A Storm Water 2016A Tudor Road 2016A 50 Highway and 291 Highway 2016A

Additional (2)

Total

8,998,000

8,998,000 942,000 7,000,000 3,460,000 2,300,000 4,360,000 2,500,000 2,000,000 3,365,000 720,000 930,000 500,000 105,000 6,370,000 5,000,000

942,000 7,000,000 3,460,000 2,300,000 4,360,000 2,500,000 2,000,000 3,365,000 720,000 930,000 500,000 105,000 6,370,000 5,000,000

Authorized But Unissued Amounts ( 75,000 Unissued) Weather Radios Strother View High ($1.0MM Unissued) 50 highway and 291 Highway($8.6 MM Unissued) Road Imp (Orchard & Pryor) ($595,000 Unissued) Cultural Arts (Unissued)

75,000 1,000,000 2,000,000 595,000 63,000 City Hall 2013 (orig 2003) Downtown Streets 2013(orig 2003)

10%

Police Station

19%

Storm Water, 2013A Curbs 2011

13% 2%

1%

Curbs 2013A Tudor Road 2013A

0%

Strother 2013A

2% 14%

2%

Road Imp (Orchard & Pryor) 2013C 50 Highway and 291 Highway 2015A

7%

Storm Water 2015A Strother 2015A

4%

7% 5% 9%

5%

Storm Water 2016A Tudor Road 2016A 50 Highway and 291 Highway 2016A

Total Authorized at 6-30-16 Unissued Total Issued and Outstanding

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

16,136,000

36,147,000

52,283,000 (3,733,000) 48,550,000

Page 207 of 225

10:General Debt Service Funds City of Lee's Summit, Missouri Computation of Legal Debt Margin June 30, 2016 General Obligation Bonds Ordinary (1)

Additional (2)

Assessed Valuation (January 1, 2015) Constitutional debt limit

$1,792,337,036 $

General Obligation bonds payable includes authorized but unissued Less: Cash and Securities Available for Retirement Bonds Payable less Available Funds LEGAL DEBT MARGIN

Total

$

179,233,704

179,233,704

358,467,408

16,136,000

36,147,000

52,283,000

1,988,252 14,147,748

4,453,974 31,693,026

6,442,226 45,840,774

165,085,955

147,540,678

312,626,634

Legal Debt Margin June 30, 2016

Ordinary 4%

Additional 9%

Debt Margin 87%

NOTES:

(1) Article VI, Sections 26 (b) and (c) of the State Constitution permits the City, by vote of two-thirds of the voting electorate, to incur an indebtedness for City purposes not to exceed 10% of the taxable tangible property therein as shown by the last completed assessment.

(2) Article IV, Sections 26(d) and (e) of the State Constitution provides that the City may become indebted not exceeding in the aggregate an additional 10% for the purpose of acquiring rights-of-way, constructing, extending and improving streets and avenues and/or sanitary or storm systems, and purchasing or constructing waterworks, electric or other light plants, provided that the total general obligation indebtedness of the City does not exceed 20% of the assessed valuation.

(3) The total assessed valuation shown above does not include state assessed railroad and utility properties.

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

Page 208 of 225

10:General Debt Service Funds PARK CERTIFICATE OF PARTICIPATION DEBT SERVICE FUND YEAR BEGINNING JULY 1, 2016 FY 2010 ACTUAL Revenues: Sales Taxes Economic Activity Taxes (EATS) Interest Transfers In Bond Proceeds Total Revenues Expenditures: Transfer to Gamber Ctr (201) Transfer to General Fund Transfer to Greenway Fund Transfer to Park Dev (327) Debt Service: Principal Retirement Interest & Fiscal Charges Total Expenditures

FY 2011 ACTUAL

FY 2012 ACTUAL

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

$ 2,862,358 $ (331,991) 1,849 -

3,056,886 $ (377,262) 3,837 -

3,169,317 $ (394,228) 7,411 505,794

3,080,479 $ (14,229) 5,930 1,709,500

3,321,232 $ (141,266) 16,235

$ 2,532,216

$

2,683,461

$

3,288,294

$

4,781,680

$

3,196,201

$

175,000 500,000 1,465,000 677,380

$

157,500 1,650,000 618,724

$

175,000 1,000,000 161,250 1,050,000 548,484

$

175,000 750,000 161,250 600,000

$

175,000 1,000,000 200,000

$ 2,817,380

$

2,426,224

$

2,934,734

$

Excess of Revenues Over (Under) Expenditures

(285,164)

257,237

1,390,000 504,333

353,560

3,580,583

$

1,201,097

FY 2016 BUDGET

3,500,464 $ (173,547) 6,658

FY 2016 FY 2017 PROJECTED REQUESTED

3,661,528 $ (158,813) 3,500 -

3,661,528 $ (160,401) 3,500 -

3,922,462 (177,597) 5,000 -

7,432,500 $ 10,766,075

$

3,506,215

$

3,504,627

$

3,749,865

$

$

175,000

$

175,000 1,800,000 1,497,000 90,535

$

175,000 2,401,500 156,860

$

3,562,535

$

2,733,360

175,000

1,800,000 1,497,000 90,535

750,000

1,370,000 450,770

10,007,500 247,363

3,195,770

$ 11,179,863

431

$

(413,788)

3,562,535

(56,320)

(57,908)

1,016,505

Fund Balances, Beginning of Year

$

838,763

$

553,599

$

810,836

$

1,164,396

$

2,365,493

$

2,365,924

$

1,952,136

$

1,952,136

$

1,894,228

Fund Balances, End of Year

$

553,599

$

810,836

$

1,164,396

$

2,365,493

$

2,365,924

$

1,952,136

$

1,895,816

$

1,894,228

$

2,910,733

The Park Certificate of Participation (COP) Debt Service Fund was established to account for the issuance of debt related to the acquisition of land and development of Legacy Park and Greenway Projects.

This fund receives the revenues generated by the 1/4 cent "Parks & Soils" sales tax. This sales tax was reduced from 3/8 cent to 1/4 cent in April 2008 as approved by the voters.

In 2006, the City issued debt relating to the new plan for the parks system, "Legacy for Tomorrow and Beyond." The amount of money required for debt service on the 2006 COPs during the current fiscal year is retained in this fund, and monies in excess of that amount may be transferred to the city park construction funds.

Interest earnings are calculated at 1% for Fiscal Year 2013-14 and .5% for 2016-17, based on the retention in this fund of only the monies required for the current year's debt service with all additional amounts being transferred to the Gamber Center Fund 201.

REVENUES, EXPENDITURES & FUND BALANCE

Revenues

$12,000,000

Expenditures

$11,250,000

Fund Balance

$10,500,000 $9,750,000 $9,000,000 $8,250,000 $7,500,000 $6,750,000 $6,000,000 $5,250,000 $4,500,000 $3,750,000 $3,000,000 $2,250,000 $1,500,000 $750,000 $ACTUAL FY 2010

ACTUAL FY 2011

ACTUAL FY 2012

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

ACTUAL FY 2013

ACTUAL FY 2014 FISCAL YEAR

ACTUAL FY 2015

BUDGET FY 2016

PROJECTED FY 2016

REQUESTED FY 2017

Page 209 of 225

APPENDIX

Page 210 of 225

Appendix

General

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.

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.

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

statements and assembling supporting documents for review by outside auditors.

Auditing: Post-Audit: Posting audit adjustments and preparing the annual financial report.

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).

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.

Page 211 of 225

City of Lee’s Summit Annual Budget FY17

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.

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.

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).

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.

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 is preliminary and tentative or whether it has been approved by the appropriating body.

Call Date: The date on which a bond may be redeemed before maturity at the option of the Issuer.

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.

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 Page 212 of 225

City of Lee’s Summit Annual Budget FY17

General Appendix 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.

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.

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.

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 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.

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.

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.

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.

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.

Page 213 of 225

City of Lee’s Summit Annual Budget FY17

General Appendix

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: 1) Expiration of the service life of capital assets attributable to wear and tare, deterioration, action of the physical elements, inadequacy or 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.

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, 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.

Disbursements: Recording accounts payable, reviewing invoices and supporting documents, and making payments to vendors.

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.

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.

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 Page 214 of 225

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

General Appendix 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 governmentâ&#x20AC;&#x2122;s policy relating to budgeting of expenditures and revenues.

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 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 issuerâ&#x20AC;&#x2122;s ad valorem taxing power.

General Property Tax: The tax usually levied on real and personal property. This tax is typically levied locally.

Page 215 of 225

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

General Appendix 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 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 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 Page 216 of 225

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

General Appendix 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.

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 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.

Pay-As-You-Go Basis: A term used to describe the financial policy of a governmental unit which Page 217 of 225

City of Lee’s Summit Annual Budget FY17

General Appendix finances all of its capital outlay from current revenues rather than by borrowing.

Paying Agent: The entity responsible for transmitting payments of interest and principal 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 employeesâ&#x20AC;&#x2122; account balance, making investments on behalf of pension funds, and disbursing retirement income.

Per Capita Debt: The amount of an issuing municipalityâ&#x20AC;&#x2122;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.

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.

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

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

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.

Revenue Bond: A bond which is payable from a specific source of revenue and issuer with taxing power is not pledged. Revenue Bonds are Page 218 of 225

City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

General Appendix 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.

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

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.

Special Assessment: A charge imposed against property in a particular locality because that 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.

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.

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City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

General Appendix 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.

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

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)

GO Bonds: General Obligation Bonds GAAP: Generally Accepted Accounting Principles

MERP: Management Information Systems Equipment Replacement Program Mortgage

FTE: Full Time Equivalents

TANS: Tax Anticipation Notes VERP: Vehicle Equipment Replacement

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City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

APPENDIX: MISCELLANEOUS STATISTICS

Page 221 of 225

Appendix

General

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

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City of Lee’s Summit Annual Budget FY17

General Appendix

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

Total Population

Rank

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

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City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

General Appendix

City of Lee's Summit Principal Employers Current Year and Nine Years Ago 2015

Employer

Employees

Rank

2,589 1,325 1,153 1,025 1,006 550 397 383 289 270

1 3 6 5 4 8 10 2 7 9

Lee's Summit R-7 School National Benefits Center City of Lee's Summit John Knox Village Saint Luke's East - Lee's Summit National Records Center Metropolitian Community College-Longview Truman Medical Center Lakewood Lee's Summit Medical Center Unity Practical School of Christianity AT&T Immigration and Naturalization Services

Percentage Of Total City Employment

2006

Employees

Rank

1,850

1

4.67%

450 950

8 4

1.14% 2.40%

450 532 1,200 400 550 1,200 500

9 6 3 10 5 2 7

1.14% 1.34% 3.03% 1.01% 1.39% 3.03% 1.26%

5.14% 2.63% 2.29% 2.03% 2.00% 1.09% 0.79% 0.76% 0.57% 0.54%

8,987

Percentage Of Total City Employment

17.84%

8,082

20.41%

Source: Lee's Summit Economic Development Council: Transformation - Annual Report

City of Lee's Summit Demographic and Economic Statistics Last Ten Fiscal Years

Education Level Some College Median Year

Population

Household Income

Per Capita Personal Income

(1)

High School (1)

Median Age

(1)

Graduate Percentage

Bachelor's

Or Associate's (1)

Degree or Higher Percentage

Degree Or (1)

Higher Percentage

(1)

School Unemployment Enrollment Rate

2006

88,666

15,858

2.80%

2007

90,785

16,381

2.90%

2008

91,586

16,742

3.40%

2009

92,927

16,986

7.60%

2010

93,163

2011

91,364

$

71,772

$

31,266

38.8

16.4%

29.9%

50.1%

17,120

6.70%

17,287

6.70%

2012

91,767

17,524

5.30%

2013

92,292

17,559

5.10%

2014

93,092

17,615

4.70%

2015

93,888

17,610

4.20%

Source:

U.S. Census Bureau, U.S. Bureau of Labor Statistics, City of Lee's Summit Planning Department, and Lee's Summit R-7 School District

(1) City specific Data for off census year is not readily available

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City of Leeâ&#x20AC;&#x2122;s Summit Annual Budget FY17

General Appendix City of Lee's Summit Operating Indicators by Function Last Ten Fiscal Years

Building Permits Issued (1) Residential/single family Residential/multi family Commercial/industrial Additions Police Protection (1) Part I Crimes Notable Part II Crimes Traffic Crashes Calls for Service Number of Officers Animal Control Calls for Service Fire Protection (1) Fire Personnel Calls Answered Water Source Kansas City Water Co. Independence Water Co Water # of Service Connections # of Fire Hydrants Avg Daily Consumption in Gallons Maximum Contract Amount Maximum Daily Demand Storage Capacity (gallons)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

791 82 44 1,223

489 55 80 2,820

380 58 35 1,937

129 8 23 1,245

110 1 19 1,082

170 — 13 1,302

166 — 10 5229 *

270 2 14 1,588

319 6 9 1,404

319 7 15 1,943

2,357 2,424 2,206 64,548 112 8,523

2,254 2,047 2,114 61,624 117 8,844

2,521 2,178 2,125 64,715 122 8,562

2,378 2,222 2,083 76,322 129 8,110

2,290 2,295 1,912 85,255 136 8,857

2,232 2,385 2,047 91,037 136 8,857

2,229 2,200 1,906 88,846 143 8,737

2,357 2,417 1,753 77,008 142 8,474

2,053 1,972 1,821 75,325 142 8,960

1,628 2,015 1,750 73,244 142 9,848

137 7,003

140 7,072

146 7,714

146 8,415

146 7,996

146 8,461

146 9,147

146 9,027

146 8,917

144 9,073

42.30% 57.70%

38.43% 61.57%

32.82% 67.18%

33.94% 66.06%

12.00% 88.00%

19.40% 80.60%

34.30% 65.70%

27.90% 72.10%

27.60% 72.40%

23.20% 76.80%

32,889 4,975 11,300,000 21,500,000 25,400,000 35,200,000

32,950 4,975 10,360,000 21,500,000 23,920,000 35,200,000

33,666 4,975 10,705,000 21,500,000 22,000,000 35,200,000

33,735 4,871 9,540,000 21,500,000 15,000,000 35,200,000

33,800 34,260 34,242 34,538 4,887 4,922 4,940 4,940 8,960,000 9,650,000 11,603,000 10,790,000 21,500,000 21,500,000 21,500,000 27,500,000 16,500,000 20,400,000 22,810,000 25,500,000 35,200,000 35,200,000 35,200,000 35,200,000

34,774 35,160 5,006 5,021 10,390,000 9,270,000 27,500,000 27,500,000 19,000,000 19,000,000 35,200,000 35,200,000

(1) Statistics based on calendar year * This includes re-roof premits. In April 2011 a significant hail storm hit the area.

Source: City records

City of Lee's Summit Capital Asset Statistics by Function Last Ten Fiscal Years

Police Protection Stations Fire Protection Stations Public Works Residential Centerline Miles Collector Centerline Miles Arterial Centerline Miles Parks and Recreation Parks Swimming Pools Indoor Aquatic Center Tennis Courts Community Centers Water Miles of Water Mains Source: City records

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

1

1

1

1

1

1

1

1

1

1

6

7

7

7

7

7

7

7

7

7

325 67 75

327 102 91

327 102 91

337 83 103

308 88 83

308 89 82

309 92 81

309 92 81

27 1 1 15 2

27 1 1 15 2

27 1 1 15 3

27 1 1 15 3

27 1 1 15 3

28 1 1 15 3

28 1 1 15 3

28 1 1 15 3

29 1 1 15 3

29 1 1 15 3

637

637

637

637

604

607

604

604

607

607

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City of Lee’s Summit Annual Budget FY17