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FISCAL YEAR 2018

B U D G E T

cityofLS.net | 816.969.1010 220 SE Green Street | Lee’s Summit, Missouri

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Table of Contents Section 1: Introduction .............................................................................................................5-14 History ................................................................................................................................... 5-6 Mayor and City Council ......................................................................................................... 6-7 Demographics & Statistics..................................................................................................... 8-11 Organization Chart ................................................................................................................ 12 Budget Calendar.................................................................................................................... 14

Section 2: Administrative Summary ..........................................................................................15-34 City Manager’s Budget Message........................................................................................... 16-28 Strategic Planning ................................................................................................................ 29-31 Performance Management Dashboard ................................................................................ 30-34

Section 3: Budget Overview......................................................................................................35-64 Fund Structure and Overview Numbers ............................................................................... 35-43 Budget Ordinance ................................................................................................................. 44-47 Financial Policies ................................................................................................................... 48-64

Section 4: Revenue Projections.................................................................................................65-76

Section 5: General Fund Overview ............................................................................................77-84

Section 6: General Fund Department Budgets ...........................................................................85-116 Administration ...................................................................................................................... 86-89 Municipal Court .................................................................................................................... 90-92 Development Center............................................................................................................. 93-95 Finance .................................................................................................................................. 96-98 Fire ........................................................................................................................................ 99-101 Law ........................................................................................................................................ 102-104 Planning and Special Projects ............................................................................................... 105-107 Police ..................................................................................................................................... 108-110 Public Works Engineering ..................................................................................................... 111-113 Public Works Operations ...................................................................................................... 114-116

Section 7: Special Revenue Funds .............................................................................................117-145 Parks and Recreation Funds.................................................................................................. 117-141 Other Special Revenue Funds ............................................................................................... 142-145 City of Lee’s Summit Annual Budget FY18

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Section 8: Capital Projects Funds ..............................................................................................146-162

Section 9: Proprietary Funds.....................................................................................................163-189

Section 10: Debt Service Funds .................................................................................................190-197

Appendix .................................................................................................................................198-207

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SECTION Introduction 1: 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, more than 96,000 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. City of Lee’s Summit Annual Budget FY18 5 of 207


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

Fred DeMoro

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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. Finance and Budget Committee The Finance and Budget Committee evaluates and reviews financial statements, investment actions, recommends purchasing and bid approvals to the full Council and considers all other financial transactions as directed by the City Council. The Committee also reviews the City Manager’s proposed budget prior to its consideration by the City Council pursuant to Article XI of the City Charter For the FY18 budget process, the committee consisted of the following members: Trish Carlyle, Chair Craig Faith Diane Forte Diane Seif

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Introduction

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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Introduction

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

5,988,927 998,954

1

Jackson County St. Charles County Greene County Clay County

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

2 3 4 5

Jefferson County Boone County Jasper County

218,733 162,642 117,404

6 7 8

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

101,492 99,478

9 10

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

1 2 3 4 5

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

6 7 8 9 10

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

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Introduction

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

Year

Population

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

90,785 91,586 92,927 93,163 91,364 91,767 92,292 93,092 93,888 95,430

Source:

Median Household Income

$

71,772

Per Capita Personal Income

(1)

$

31,266

(1)

Median Age

38.8

(1)

High School Graduate Percentage

(1)

Education Level Some College Or Associate's Degree or Higher Percentage

16.4%

29.9%

(1)

Bachelor's Degree Or Higher Percentage

(1)

School Enrollment 16,381 16,742 16,986 17,120 17,287 17,524 17,559 17,615 17,610 17,747

50.1%

Unemployment Rate 2.90% 3.40% 7.60% 6.70% 6.70% 5.30% 5.10% 4.70% 3.80% 3.50%

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

City of Lee's Summit Principal Employers Current Year and Nine Years Ago 2016

Employer John Knox Village Lee's Summit R-7 School Saint Luke's East - Lee's Summit University of Central Missouri City of Lee's Summit Unity Village CVS Caremark Inc Missouri State Highway Patrol Lee's Summit Medical Center Metropolitian Community College-Longview AT&T Truman Medical Center-Lakewood

Employees

Rank

3,673 2,420 2,015 2,000 1,380 528 450 425 413 400

1 2 3 4 5 6 7 8 9 10

Percentage Of Total City Employment

13,704

2007

Employees

Rank

7.26% 4.78% 3.98% 3.95% 2.73% 1.04% 0.89% 0.84% 0.82% 0.79%

1,050 2,525 541 — 659 550 559 — 480 1,000 1,200 1,200

4 1 8 — 6 9 7 — 10 5 2 3

27.08%

9,764

Percentage Of Total City Employment 2.65% 6.38% 1.37% 0.00% 1.67% 1.39% 1.41% 0.00% 1.21% 2.53% 3.03% 3.03% 24.67%

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

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Introduction

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)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

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

310 7 16 1,548

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

1,542 2,104 1,800 67,451 143 10,518

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

144 10,000

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%

28.60% 71.40%

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 4,887 8,960,000 21,500,000 16,500,000 35,200,000

34,260 4,922 9,650,000 21,500,000 20,400,000 35,200,000

34,242 4,940 11,603,000 21,500,000 22,810,000 35,200,000

34,538 4,940 10,790,000 27,500,000 25,500,000 35,200,000

34,774 5,006 10,390,000 27,500,000 19,000,000 35,200,000

35,160 5,021 9,270,000 27,500,000 19,000,000 35,200,000

35,379 5,076 10,150,000 32,500,000 21,300,000 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

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

1

1

1

1

1

1

1

1

1

1

7

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

306 94 83

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

29 1 1 15 3

637

637

637

604

607

604

604

607

607

611

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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 2017-2018 Budget Calendar The annual budget calendar is developed by the City Manager and Chairman of the Finance and Budget Committee. The calendar includes Committee meeting schedule and important milestones to guide the budget process.

FY18 Budget Calendar Overview August 1, 2016 4:00 PM August 29, 2016 4:00 PM August 30, 2016 October 3, 2016 4:00 PM October 24, 2016 October 24, 2016 November 7, 2016 4:00 PM November 9, 2016 December 5, 2016 4:00 PM December 5, 2016 December 6, 2016 December 7, 2016 December 8, 2016 January 2, 2017 4:00 PM January 2017 January 9, 2017 January 16, 2017 January 27, 2017 February 6, 2017 4:00 PM February 6, 2017 February 6, 2017 February 20, 2017 February 2017 March 6, 2017 4:00 PM (Rescheduled) April 17, 2017 5:00 PM April 24, 2017 5:00 PM April 2017 April 2017 May 1, 2017 5:00 PM May 2, 2017 May 8, 2017 5:00 PM May 15, 2017 5:00 PM May 18, 2017 6:15 PM June 1, 2017

August 2016 Regular Finance & Budget Committee Meeting Agenda: Review FY18 Budget Process (Calendar), Levy Discussion Regular Finance & Budget Committee Meeting (rescheduled from September 5) Agenda: Public Safety upgrades MT meeting: Prep for FY18 Budget Process; Review Calendar; Set Action Items October 2016 Regular Finance & Budget Committee Meeting Agenda: Rollover Amendment, Dashboards, Storm water infrastructure funding(?) Budget Kickoff Meeting Departments begin preparing mid year projections November 2016 Regular Finance & Budget Committee Meeting Agenda: Discussion of Use Tax, Dashboards Pre-budget meeting with Internal Service Departments December 2016 Regular Finance & Budget Committee Meeting Agenda: Dashboards, Chamber PSA, Downtown PSA LBP Training: Navigation and Entry (2:00pm in the ITS Training Room) LBP Training: Navigation and Entry (11:00am 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 2017 Regular Finance & Budget Committee Meeting Agenda: Dashboards Departments prepare FY18 budget requests All FY17 year end projections due City Manager Review of FY17 YE Projections Core Expenditure Numbers due February 2017 Regular Finance & Budget Committee Meeting Agenda: Review of FY17 Year End Projections, Dashboards , Tentative Audit Report 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 Parks and Recreation budget to Park Board March 2017 Regular Finance & Budget Committee Meeting Agenda: FY18 revenue projections, Changes to Schedule of Fees, Report on Records Mgmt Audit April 2017 Regular Finance & Budget Committee Meeting Agenda: Dashboards Special Finance & Budget Committee Meeting: Agenda: Presentation of City Manager's proposed FY18 Budget Department budget meetings with City Manager conclude Annual Report to City Council (TBD) May 2017 Regular Finance & Budget Committee Meeting Agenda: Continued Discussion of FY18 Budget Notice of public hearing due by noon Special Finance & Budget Committee Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget Special Finance & Budget Committee Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget City Council Meeting: PUBLIC HEARING June 2017 City Council Meeting: Vote on Ordinance

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SECTION 2: ADMINISTRATIVE SUMMARY

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2: Administrative Summary April 24, 2017 Mayor and City Council, As we close on another fiscal year, I wanted to take a moment to appreciate the great success we have experienced as a city the past twelve months. Lee’s Summit has received a number of accolades indicative of the high quality of life enjoyed by our residents: “Best Place to Live” in the state of Missouri by Money Magazine, ranked fifth on the list of “America’s 50 Best Cities to Live” by 24/7 Wall Street, ranked first on the “10 Happiest Mid-Sized Cities in America” by Zippia. As an employer, the City of Lee’s Summit was named 2016 Best in Class by the Lee’s Summit Chamber of Commerce as the recipient of the Truly the Best Business of the Year Award. Additionally, Lee’s Summit voters have approved by wide margins a bond issue for critical public safety facility and communication upgrades as well as the renewal of a sales tax to invest in infrastructure needs, including stormwater. None of this could be possible if not for the many hours spent by our citizens, elected leaders, and staff envisioning and strategically planning the future of Lee’s Summit. It is this type of planning that allows the organization to overcome challenges from a position of strength as well as take advantage of future opportunities towards the vision 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.

To that end, the City Council is currently engaging in a renewed strategic planning process for the City of Lee’s Summit while the organization undertakes a compensation and benefit study to measure the competitiveness of the City’s pay structures to attract and retain quality employees. Taken together with the City’s financial position, City leadership has the opportunity to address critical needs of the city and organization with lasting impact. To accomplish this, the City will need to plan and identify sustainable revenue resources that can be counted on to support the level of service expected by the citizens of Lee’s Summit.

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2: Administrative Summary 1. Budget Request In the FY18 Budget, and in future budgets, City staff works to allocate resources in support of the strategic initiatives identified by the Mayor and City Council. The budget message to follow will be organized by the new Strategic Planning Framework adopted by Council in December 2016. The City has approximately 70 different funds, each categorized by purpose. We are proposing a total budget expenditure of $217,538,780. This includes all proposed funding for daily operations, capital improvements, debt service, internal service, and enterprise operations. Total Proposed Budget FY17 Fund Type Budget General Fund 64,397,020 Special Revenue Funds 16,876,385 Debt Service Funds 11,127,863 Capital Project Funds 45,812,629 Enterprise Funds 56,046,838 Internal Service Funds 14,158,623 Total Proposed Expenditure 208,419,359

FY18 Proposed 67,190,459 13,366,470 11,244,005 56,091,029 55,986,791 13,660,025 217,538,780

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, municipal court, and general administration of the City. Special Revenue Funds: These funds include Parks, grants, tax increment financing (TIF), and transportation development district (TDD) funds. These 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 actions. 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 since 2003. Enterprise Funds: The City’s enterprise funds hold the budgets for departments that operate in businesstype activities. These funds rely on revenues generated from sales of materials or services. The enterprise funds include budgets for 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.

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2: Administrative Summary 2. 2017 Strategic Planning Framework This section highlights the key initiatives that will be undertaken by the City of Lee’s Summit in the coming fiscal year towards the vision of the Mayor and City Council. The following initiatives would be accomplished by the proposed budget. Safety: To create an environment where the perception of safety is supported by the reality of safety. A number of key initiatives in the sphere of public safety are happening this fiscal year. The largest of magnitude is the emergency services radio system upgrade. The voters of Lee’s Summit approved the General Obligation bonds on November 8, 2016. Though the funding was approved in the current fiscal year, a significant investment of staff time and project management will occur in FY18. The project will allow public safety officials in Lee’s Summit to join the Metropolitan Area Regional Radio System (MARRS). Joining the MARRS system will enable users the ability to seamlessly roam and have voice communications throughout the service area and to communicate directly with partner agencies. General Obligation Bonds in the amount of $8.5 million have been authorized by Lee’s Summit voters to complete this project. The Police and Fire Departments are each expanding their headcount in the proposed FY18 budget. The Drug Enforcement Agency has recently approached the Lee’s Summit Police Department regarding the addition of a task force officer with the High Intensity Drug Trafficking Area program. This partnership will allow the Police Department to add another police officer to the force at minimal cost and enhance coordination between agencies for local issues. In the proposed budget, the Fire Department has added a Captain of Training and Captain of Support Services to their ranks. The Captain of Training will provide required training for certification and licensure for the department. In previous years, these duties were shared and among other responsibilities shouldered by the department. The addition of this Captain will allow the department to provide better training opportunities and enhance the level of service provided to citizens. The Captain of Support Services is a reclassification of a Fire Specialist who will enhance the effectiveness of the administration of the department such as coordination with outside vendors and City departments, fleet maintenance, and equipment replacement schedules. The Captain of Training expansion will cost $81,036 and the reclassification of the Captain of Support Services will cost $3,789 annually. Education: Continue the environment for education eco-system to thrive The City of Lee’s Summit is in the process of partnering with the Missouri Innovation Campus for participation in their Campus Internship Program. The program would allow students who recently completed their junior of high school to get hands-on experience working in technical fields in different areas of the organization. For the inaugural year of the partnership, the departments of Public Works, Development Services, and Information Technology Services have signed on to the program with opportunities for expansion in the future. The interns are available from the programs of networking, design and drafting, programming, and cybersecurity.

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2: Administrative Summary Transportation: A multi-modal system that embraces livability and connectivity, including accessibility With the successful renewal of the Capital Improvement Sales Tax on April 4, 2017, staff will be able to invest significant time, money, and energy toward making large investments in the transportation network throughout Lee’s Summit. The sales tax is projected to generate approximately $100 million in revenue that will be used for roads and transportation-related projects, as well as stormwater infrastructure improvements. As part of this effort, the Public Works department will be expanding personnel to include one additional Engineer to work on CIP-related projects. Major projects receiving funding in FY18 are included in the Capital Improvements Plan section below. Additionally, the Airport will be completing the extension of runway 18/36 in fall 2017. This project extends the runway to 5,500 feet to accommodate larger planes taking off from and landing at the Lee’s Summit Airport. Together with the purchase of Hangar 1 in the current fiscal year, these investments will be integral to attracting and retaining customers at the airport, as well as a key competitive advantage in transportation for attracting businesses to Lee’s Summit for economic development. To meet the strategic needs of the Airport Business Plan, capital expenditures and personnel expansions are identified in the proposed budget to be spent after business benchmarks are met. Health and Human Services: Maximize accessibility and affordability as a wellness community The City of Lee’s Summit receives Community Development Block Grant (CDBG) funds from the Department of Housing and Urban Development (HUD) on an annual basis to meet the needs of low- to moderate-income individuals and families; to address blight in Lee’s Summit; or to meet an urgent need. The 2017-2018 Action Plan calls for a number of programs including: Food services for persons of special needs; services for victims of domestic violence; Lee’s Summit Social Services operating expenses for providing emergency assistance to those in need of food, clothing, utility assistance, and more. The CDBG grant also funds the First Time Homebuyer Program and the Minor Home Repair Program. These programs provide assistance for people to obtain quality housing in Lee’s Summit to combat homelessness and blight in our neighborhoods. Infrastructure: Ability to address needs; expanding capacity for the future With the successful election on April 4, 2017, of the renewal of the Capital Improvement Sales Tax, the City of Lee’s Summit has an opportunity to invest in needed stormwater infrastructure. Enshrined in the recommendations of the Public Works Committee for projects is an estimated $24,500,000 in stormwater-related projects. These stormwater projects will help alleviate structure flooding and streambank erosion, as well as replace deteriorated corrugated metal pipe. Beginning in FY2018, Water Utilities is proposing to embark on a reorganization of the department to better address the needs of the community. Water Utilities has for years improved processes and efficiencies with minimal increases in staffing levels, but at this time, additional staff and restructuring is required to enhance data-driven asset management methods and to provide greater depth and capacity to billing and account services. The FY18 budget proposes to increase the personnel count of Water Utilities by 2 FTE’s for a cost of $102,026. The two new positions are a Utility Engineer and Account Services Manager. In addition, the department proposes the reclassification of two vacant FTEs to Operation Technicians. The Operation Technicians will be utilized to support the Utility’s after-hours

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2: Administrative Summary response to calls for service and enhance the collection of data related to utility assets which can then be utilized to improve the prioritization of system renewal projects. Economic Development: Thriving yet affordable growth which generates options for long-term careers The Unified Development Ordinance (UDO) promotes public safety, health, and general welfare of the community by regulating and directing the development of land in Lee’s Summit. Adopted in 2001, the UDO has continued to be amended and updated in order to stay current with new development strategies, trends, and planning best practices. After more than 60 amendments, the FY18 budget proposes to include funding for a recodification of the UDO in order to better streamline the Ordinance, and continue to make the process easier to navigate and developer-friendly for years to come. The Planning and Special Projects Department has included $150,000 in the proposed FY18 Budget to complete this process. Additionally, a renewed effort behind redevelopment in Lee’s Summit is underway thanks in part to the Land Clearance for Redevelopment Authority (LCRA). Originally established by the voters of Lee’s Summit in 1961, the LCRA was reactivated on September 1, 2009. The LCRA provides incentives for redevelopment in targeted urban renewal areas, which include downtown, Lakewood Business Park, and US 50/M-291 corridors. The LCRA has approved projects such as HT Solutions, JCI Industries, the relocation of Minsky’s, and Co-Work Lee’s Summit. These four projects alone yielded a total of $6.95 million in investment and created or retained 191 jobs in Lee’s Summit. In the upcoming fiscal year, staff will continue to support the operations of the LCRA and targeted investment in our community. Culture and Arts: Create a supportive environment for artistic expression that represents community values In previous years, a transfer in the amount of $68,845 has been made from the General Fund to Parks & Recreation to provide staff support to the Arts Council and programming for the enrichment of Cultural Arts in Lee’s Summit. In this fiscal year, that funding will stay within the Administration Department and will be used to create a new position, Cultural Arts Manager, under the supervision of the City Manager. This will allow the City to have a more singular focus toward the implementation of the Cultural Arts Master Plan.

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2: Administrative Summary 3. Review of Financial Condition – General Fund One of the many strengths of this organization is the thoughtful and strategic way in which taxpayer dollars are spent toward achieving outcomes that benefit the citizens of Lee’s Summit. Over the last five years, the City has invested in public safety, streamlined its development process, and enhanced the cultural vibrancy of our downtown. Simultaneously, an effort has been underway to rebuild the general fund reserve balance. Since the commencement of fiscal year 2013, the reserve balance has increased more than $12 million, and is project to sit at 39% of expenditures at the close of fiscal year 2017. General Fund Total Revenue Total Operating Exp. Net Operating Budget One-Time Exp. Total Budget Surplus/(Deficit)

FY2017 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Budget Proj Request Forecast Forecast Forecast Forecast Forecast 63,510,293 66,348,243 68,856,006 69,712,054 70,871,304 72,070,417 73,331,476 74,499,413 63,334,175 64,650,600 66,680,093 68,123,957 69,612,913 71,153,100 72,747,165 74,397,925 176,118

1,697,643

2,175,913

1,588,098

1,258,391

917,317

584,311

101,488

887,995 1,622,995 (711,877) 74,648

510,367 1,665,546

0 1,588,098

0 1,258,391

0 917,317

0 584,311

0 101,488

Presently, the City has engaged with a consultant to analyze our compensation and benefit program for our employees. The scope of the consultant’s work includes ensuring internal equity within the organization as well as market competitiveness with organizations we view as competitors, comparators, or those we aspire to become. Investing in our employees remains the most critical aspect of the General Fund expenses from both a strategic and monetary perspective. During the current fiscal year, personnel-related expenses were 68% of total expenditure of the General Fund. For this reason, it is crucial these dollars are spent in a way that most effectively attracts and retains the best talent in the region. The proposed FY2018 budget sets aside $2 million in order to implement the results of the Compensation and Benefit Study and wage adjustments, increasing personnel-related expenses to 69% of General Fund expenditure. The benefit of the five-year model is the ability to see how current trends and decisions affect the long-term financial health of the City. As shown in the model, the long-term trend is such that forecasted expenditure growth outpaces revenues. While writing this message last year, the status of the motor vehicle sales tax was in doubt. Thanks to the voters of Lee’s Summit, that tax has been permanently preserved and local auto dealerships are on an equal playing field. The long-term deterioration of franchise taxes, the third-largest revenue source, continues to be a concern. The cause of this deterioration is as a result of new technologies and efficiencies. The demise of traditional land-line phone and more energy-efficient homes are contributors to the reduction of this revenue. Traditional methods of revenue collection may continue to produce declining outcomes, and modern approaches will need to be pursued.

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2: Administrative Summary As internet sales continues to represent an increasing portion of economic activity, the lack of a Use Tax places Lee’s Summit-based retailers at a competitive disadvantage. Staff is recommending the consideration of a use tax as a potential long-term solution similar to the recently-approved Motor Vehicle Sales Tax. 4. General Fund Overview In FY18, General Fund revenue estimates total $68,856,006, which will be used to fund an operating budget of $66,680,093. The proposed budget also includes one-time, special project expenses of $510,367, as well as $2 million set aside for the implementation of wage adjustments as a result of the Compensation and Benefit Study. General Fund Revenues Property Tax: FY18 estimates a 6.03% increase in Property Taxes over the previous fiscal year budget. The increases are reflected as a result of an increase in our assessed value in calendar year 2016 in Jackson and Cass Counties as well as a preliminary calendar year 2017 assessed value estimate supplied by Jackson County. Also included in the increased revenue is Replacement Tax ($134,764; 8.88%) and Payments in Lieu of Taxes ($208,942; 13.21%). The increase in Replacement Tax is as a direct result of an increase in the commercial real property assessed value in the City, whereas PILOTs are as a result of additional Chapter 100 economic development projects and investment coming online this fiscal year. Sales Tax: General Fund sales tax revenue is a net figure of the gross 1% sales tax receipts less sales tax redirection from Economic Activity Taxes (EATs) generated within Tax Increment Financing (TIF) projects in Lee’s Summit. Gross sales tax revenue is estimated at 3% over FY17 year-end projections. The expected termination of the Chapel Ridge TIF in the last quarter of the current fiscal year yields a lower FY17 FY18 Change from FY17 budget estimate for EATs in FY18 (-$82,373; Budget Requested $ % -13.21%). Property Tax Sales Tax Franchise Tax Motor Vehicle Tax Other Taxes Fines and Forfeitures Licenses and Permits Intergovernmental Charges for Services Investment Earnings Other Transfers In Total

19,341,788 15,136,358 13,524,887 3,364,508 332,640 1,412,986 1,786,379 826,253 5,271,476 64,103 1,494,400 954,515 63,510,293

20,508,192 16,197,424 13,037,427 3,671,162 324,597 1,405,838 2,411,880 1,008,067 7,570,459 56,845 1,659,600 1,004,515 68,856,006

1,166,404 1,061,066 -487,460 306,654 -8,043 -7,148 625,501 181,814 2,298,983 -7,258 165,200 50,000 5,345,713

6.03% 7.01% -3.60% 9.11% -2.42% -0.51% 35.02% 22.00% 43.61% -11.32% 11.05% 5.24% 8.42%

Franchise Tax: This 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 are largely dependent on weather and consumption of these utilities. Very mild winters and low commodity prices have resulted in the 2-year average of natural gas to yield a lower revenue estimate compared to FY17 (-$120,292; -5.39%). Telephone franchise tax revenue is estimated to decrease $279, 034 (-10.21%). Network data transmission has been exempted from a user’s telephone bill and this revenue stream is in long-term decline. In total, franchise tax revenue is expected to decrease $487,460 (-3.6%) from FY17 budgeted revenue.

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2: Administrative Summary Charges for Service: On February 11, 2016, City Council passed Ordinance No. 7815, which establishes a 50% cost recovery rate for EMS service. As a result of this change, EMS charges for service is expected to be $2.1 million above last fiscal year’s revenue, however significant adjustments will be made for insurance adjustments, Medicare, Medicaid, and bad debt write-offs. General Fund Expenditures The challenge each budget planning process is to maximize the scarce resources provided by taxpayers and residents of the community in the most efficient manner possible. In FY18, the total proposed budget expenditure of the General Fund is $67,190,459, a 4.34% increase over the current fiscal year.

Personnel Services Supplies for Resale Other Supplies, Services, and Charges Repairs and Maintenance Utilities Fuel and Lubricants Miscellaneous Capital Outlay Interdepartment Charges Transfers Out Total

FY17 Budget 43,489,284 235,000 9,486,986 1,398,571 1,738,634 564,153 341,790 675,000 5,899,392 568,210 64,397,020

FY18 Request 45,806,645 245,000 10,181,400 1,485,895 1,734,766 556,097 236,825 54,902 6,314,969 573,961 67,190,459

Change from FY17 Budget $ % 2,317,114 5.33% 10,000 4.26% 694,414 7.32% 87,324 6.24% -3,868 -0.22% -8,056 -1.43% -104,965 -30.71% -620,098 -91.87% 415,577 7.04% 26,164 4.60% 2,793,439 4.34%

Personnel Services: This category of expense accounts for costs associated with employees’ compensation and benefits. As a service organization, our largest expense is for those who provide our municipal services such as accountants, police officers, fire fighters, and other dedicated professionals. In FY18, an annual increase of 10% in health insurance of is budgeted. The $2 million set aside for wage adjustments is not included in the City Manager’s budget as the adjustments are as yet undefined. The change from FY17 also includes full-year costs of subsequent budget amendments such as 3 FTEs in Development Services as well as 0.5 FTE increase for Municipal Court security. The proposed budgeted increase for personnel services is $2.3 million, or 5.33%.

Other Supplies and Services: This category of expense accounts for those associated with daily operations such as good, services, supplies, contractual expense, and many other items. A significant portion of the increase in this category is related to the Payment in Lieu of Taxes (PILOT) disbursement ($261,046). Previously mentioned was the increase in revenue as a result of PILOTs received by the City. In these instances, the City collects PILOT payments and disburses them to partner taxing jurisdictions on a pro rata basis of the property tax levy. Overall this category in the proposed budget is increasing $694,414, or 7.32%.

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2: Administrative Summary 5. 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 Water Utilities, Airport, Harris Park as enterprise funds and Fleet Management, Central Building Services, and Information Technology Services as internal service funds. FY17 Enterprise Funds Budget Airport Fund 9,766,197 Harris Park Community Center 1,480,717 Solid Waste Management 4,562,341 Water/Sewer Fund 40,237,585

FY18 Change from FY17 Proposed $ % 11,462,427 1,696,230 17.37% 1,552,812 72,095 4.87% 2,111,171 -2,451,170 -53.73% 40,860,382 622,797 1.55%

Water Utilities 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 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. The Airport provides general management and administration of resources to operate, maintain, market, and promote the airport which operates two runways and eight taxiways, totaling 166,044 square yards of pavement, and 23 buildings. Resource Recovery Park: Following the privatization of landfill services, the City will provide oversight to the City’s contractor ensure compliance with state laws and the delivery of services. The City will also provide project management for the delivery and construction of a trash transfer station. Information Technology Services (ITS) provides central management of information technology resources and initiatives for the entire organization. Key projects to be led by ITS for the upcoming fiscal year include snow route optimization software for Public Works, the implementation of a budgeting software solution, and software upgrades to the Fire Department. FY17 FY18 Internal Service Fund Budget Proposed Central Building Services 1,668,059 1,737,262 Claims & Damages Reserve Fund 875,000 845,625 Fleet Operations 5,744,190 5,163,561 ITS Services 4,870,227 4,082,428 Short Term Disability Fund 39,533 38,015 Unemployment Trust Fund 32,262 32,262 Work Comp Self-Insurance 929,352 1,034,191

City of Lee’s Summit Annual Budget FY18

Change from FY17 $ % 69,203 4.15% -29,375 -3.36% -580,629 -10.11% -787,799 -16.18% -1,518 -3.84% 0 0.00% 104,839 11.28%

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2: Administrative Summary Fleet Management 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 work done in this arena includes expanding capabilities to doing repairs in-house thereby reducing maintenance costs for the City. Additionally, utilizing funding identified in the current fiscal year, fleet will be leading the effort to relocate the central fueling station behind City Hall alleviating functional and environmental concerns. Central Building Services (CBS) provides oversight and management of the City’s facilities including administration of the Building and Equipment Replacement Program (BERP), project management, facility maintenance services and custodial services programs, as well as maintenance and repair services for excess properties and leased facilities. CBS will be provide construction oversight for the new Water Utilities operation facility, which will be completed in the second quarter, as well as expertise in the planning of the downtown outdoor cultural arts facility. The proposed budget includes funding for a new facility maintenance worker whose time will be split with Downtown Lee’s Summit Main Street CID to conduct grounds keeping services in the downtown area. 6. Capital Improvement Plan The 2018-2022 Capital Improvement Plan (CIP) has been divided into eight major categories, plus the Public Works and Water Utilities programs. The total estimated cost of all projects included in the fiveyear plan is $270,098,000. Capital Project Funds FY17 Budget FY18 Proposed Airport 9,931,000 8,921,000 Bridges, Streets, Signals 24,726,000 15,999,000 Capital Equipment Replacement 629,831 225,531 Facilities 0 13,000,000 Parks Construction 2,360,000 1,900,000 Water & Sewer Construction 5,610,000 6,516,000 Total 43,256,831 46,561,531

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 the subsequent years funding added to each future annual budget respectively. In FY18, major CIP projects receiving funding include: • M291 South interchange with U.S. 50 • Jefferson Street – Persels Road to Oldham Parkway • 3rd Street Improvements – Murray Road to Pryor Road

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2: Administrative Summary 7. Workforce and Expansion Requests 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 FY18 Budget, the workforce includes 701 full-time positions and 26 part-time positions, excluding temporary staff. Full-time Equivalents (FTE) Fund

FY16

FY17

Change from FY17

FY18

Count

%

General Fund

526.11

539.58

548.12

8.54

1.58%

Parks & Recreation

111.52

110.89

111.54

0.65

0.59%

60.50

60.50

62.50

2.00

3.31%

6.26

7.46

9.16

1.70

22.79%

Water Utilities Airport Solid Waste

14.80

1.00

1.00

0.00

0.00%

CBS

10.62

10.62

8.62

-2.00

-18.83%

Fleet

9.12

9.12

9.12

0.00

0.00%

24.71

27.76

28.06

0.30

1.08%

763.64

766.94

778.12

11.18

1.46%

ITS Total

The primary goal of the budget-making process is to maintain the level of service our community currently receives. In addition to that, the Management Team is encouraged to bring forward ideas that can increase efficiency, or improve and enhance levels of service. Through this process, capital expenditures, professional services, or personnel requests not in the current operational budget are identified as expansion requests. These requests are reviewed to ensure they support the goals and objectives of the organization and can be sustainably financed. The following expansion requests have been included in the City Manager’s FY18 budget for funding consideration: General Fund Expansions Department Fire Police PW Engineering

Type Personnel Personnel Personnel

Fire PW Engineering PW Engineering PW Engineering

Personnel Personnel Personnel Personnel

Description Captain of Training Detention Officer (x2) Engineer Reclassifications Captain of Support Services Traffic Operations Technician (x3) Senior Traffic Operations Technicians (x2) Lead Traffic Operations Technician Total Impact to General Fund

City of Lee’s Summit Annual Budget FY18

FY18 Impact $81,036 $36,033 $93,131

Recurring Impact $76,469 $36,033 $91,611

$3,789 $0 $0 $0 $213,989

$3,789 $0 $0 $0 $207,902

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2: Administrative Summary The expansion request process is deliberative— where the many and competing needs of the organization are met with limited resources—and decisions must be made. The City Manager and management team of the City of Lee’s Summit placed a higher importance on correcting pay inequities for current employees over expanding personnel. It is the consensus of the Management Team that implementing wage adjustments identified by the compensation and benefit study is mission critical to the organization. For this purpose, the City Manager’s Budget has reserved $2 million to address pay inequities. The unfunded expansion requests identified below represent future opportunities for enhanced service delivery. Management Team will keep these items in mind while the City Council sets priorities through the strategic planning process and as sustainable revenues are identified. Unfunded Department Expansion Requests Department Administration Fire Fire Fire Fire Fire Fire HR ITS ITS ITS ITS Police PW Engineering PW Engineering PW Operations

Type Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Personnel Capital

Description Cultural Arts Director Full-year FTE Communications Specialist (4 FTE) Captain of Training (2nd FTE) Administrative Assistant EMS Assistant Chief Captain of Prevention Battalion Chief of Planning Human Resources Specialist Help Desk FT conversion PTP GIS Technician Enterprise Applications Supervisor System Administrator Animal Control Officer Public Works Inspector Engineering Technician Shop fan installation Total Impact Impact to General Fund

City of Lee’s Summit Annual Budget FY18

FY18 Impact $18,260 $205,709 $81,036 $49,512 $109,638 $81,036 $101,354 $72,040 $32,500 $35,526 $107,540 $97,417 $53,056 $103,153 $100,832 $60,000 $1,308,609 $1,035,626

Recurring Impact $18,260 $205,109 $76,469 $48,455 $104,829 $76,469 $96,697 $70,668 $32,500 $31,326 $103,340 $93,217 $51,636 $74,533 $72,612 $0 $1,156,120 $895,737

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2: Administrative Summary 8. Summary Lee’s Summit is not a static community; Lee’s Summit is a vibrant and growing community. Likewise, it is important that our organization continually change to meet community needs. We, as an organization, try to provide the level of service expected by the community while balancing the unique challenges presented by growth. We are confident the proposed budget allows us to provide the level of service currently enjoyed by the citizens of Lee’s Summit. Additionally, the budget allows the organization to invest $2 million in wage adjustments for our employees in addition to the $1.2 million already enshrined by the newest labor agreement with the International Association of Fire Fighters. Our City employees are the most important asset to the organization and the community. It is vital we continue to attract and retain highly-dedicated individuals that are committed to public service as well as their profession. With the adoption of this budget, the City will have assigned an additional $3.2 million to this important asset. I believe this budget will meet our community expectations while addressing needs of the organization in a fiscally responsible manner. I am appreciative of the significant work of our management team and budget technicians in preparing this budget for your consideration. Sincerely,

Stephen Arbo City Manager

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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.

Approach The City Council embarked on a new strategic plan in June 2016. On December 1, 2016, the City Council adopted a new Strategic Planning Framework and Continual Improvement Process. The Strategic Planning Framework outlines the Strategic Initiatives, vision, and goals for each area. The City Council, as well as staff, will continue to work through the Strategic Process. Strategic Planning Framework Safety: To create an environment where the perception of safety is supported by the reality of safety • Educate our citizens on high performance standards and how we are attaining these goals. • A well-staffed, well-paid, well-equipped public safety group that is future oriented, who carry forward community values. • Provide resources and facilities to maximize ability to protect citizens Education: Continue the environment for Education eco-system to thrive • Collaboration of all sectors of educational institutions • Engage students in community to retain studies in Lee’s Summit after graduation • Upgrade online and communication technology that builds data to increase community education and engagement

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2: Administrative Summary Transportation: A multi-modal system that embraces livability and connectivity, including accessibility • Investigate and implement different modes of transportation for all ages • Incorporate technology into transportation • Identify support (leverage and capitalize) for regional options • Connect recreation to economic development projects • Viable roadways in all parts of the city Health and Human Services: Maximize accessibility and affordability as a wellness community • Wellness community; education and outreach; legislative advocacy; protection of environmental resources • Encourage development growth, additions and expansion of non-profit programs • Encourage development of medical resources • Assess housing for non-profits • Aid in free and reduced lunches Infrastructure: Ability to address needs, expanding capacity for future • Identify gaps and shortcomings and work to address • Maximize roadway capacity • Improve storm water management system • Maintain curbs and sidewalks • Develop clear policies regarding public versus private needs • Long-term planning including maintenance schedules Economic Development: Thriving yet affordable growth which generates options for long-term careers • High quality, diverse economic development with bold and flexible decision making to encourage more innovative technology and high wage careers • Clear, easily-understandable processes allowing for high-quality appropriate development with emphasis on problem solving • Spec buildings ready for occupancy Culture/Arts: Create a supportive environment for artistic expression that represents community values • Cultivate and foster the growth of an emerging and energetic arts environment • Complete Cultural Arts Corridor • Encourage private investment • Public art visible in all areas of the community • Unique and fun options that builds culture and community, attracts others and increases value

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2: Administrative Summary Ongoing Strategic Planning Process Steps 1. Staff will match up existing programs and projects in progress to the goals in the Strategic Plan Framework 2. Staff will identify projects discussed but not yet funded due to financial constraints 3. Council will identify obvious gaps to achieve stated goals and discuss solutions or identify future projects 4. Staff will create a timeline to sequence current projects and Council will prioritize the sequence of future projects 5. Staff will create a detailed Management Action Plans for the highest-priority projects and programs. With City Council guidance, City staff will continue to develop Management Action Plans for next level priorities and plans 6. As a Council, you will review goals and status of projects on a regularly scheduled basis and on an annualized basis, the Council will review the entire Strategic Plan Framework, revise the vision, update goals and prioritize projects.

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2: Administrative Summary

City of Lee’s Summit Performance Management Dashboard As previously identified, the strategic vision areas for the City Council Strategic Plan are: 1. Safety 2. Education 3. Transportation 4. Health and Human Services 5. Infrastructure 6. Economic Development 7. Culture/Arts The City has established performance measures and targets associated with these key vision areas. 1.

Safety Number of Incidents by Year, Fire Dept. CY2013 CY2014 CY2015 CY2016 CY2017 Fire 1,643 1,818 2,022 1,929 2,102 EMS 6,184 6,244 6,833 6,875 7,494 Hazardous Materials 391 409 553 395 432 Rescue 541 545 592 612 667 Total Incidents 8,759 9,016 10,000 9,811 10,695 Total Average Response Time, Fire Dept. CY2013 CY2014 CY2015 CY2016 CY2017 Low Risk Fire Metro-Urban n=209 n=222 n=240 n=373 8:50 8:32 8:25 8:56 6:20 Suburban n=85 n=85 n=93 ** 9:48 10:06 9:03 Rural n-147 n=168 n=171 ** 10:28 10:47 9:50 Moderate Risk Fire Metro-Urban n=2 n=2 n=6 n=28 12:37 10:41 12:29 17:00 10:20 Suburban n=2 n=1 n=5 ** 18:02 9:40 15:21 Rural n=2 n=1 n=7 ** 18:15 12:21 18:20 High Risk Fire Metro-Urban n=19 n=19 n=21 n=29 16:51 12:45 20:05 22:38 10:20 Suburban n=3 n=4 n=8 ** 14:13 18:08 15:58 Rural n=5 n=5 n=8 ** 21:16 22:40 16:44 ** As of Jan. 2016, requirements for emergency response and ERF were modified and all data is now reported under metro-urban category

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2: Administrative Summary 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

CY2016

CY2017

9,358 31,323 44,003

9,848 30,485 42,759

10,518 31,259 36,192

9,828 30,927 34,308

10,000 31,000 40,000

48.12% 84.81% 77.05%

47.23% 85.71% 65.08%

45.18% 86.47% 79.53%

37.46% 94.17% 82.25%

45.00% 90.00% 80.00%

5:30 8:33

5:18 7:41

5:50 8:20

5:14 8:19

5:00 8:00

2. Education The inclusion of Education as an adopted strategic vision is new. Over the course of this year, appropriate benchmarks will be developed as the goals and objectives of this vision area are defined. 3. Transportation Performance Measurements

FY15

FY16

Bridge Sufficiency Rating (Based on biennial MoDOT inspection of Lee's Summit's 52 bridges) Traffic Safety

87.85%

87.85%

-3%

-2%

0%

-2%

94.34%

94.44%

96.43%

99.44%

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

FY17

FY18

89.79% > 87.87%

4. Health and Human Services Performance Measures, Codes Enforcement and Neighborhood Services FY15 FY16 FY17 Building permits issued 1885 1980 1979 Building inspections performed 18744 15744 15788 Neighborhood Services cases 1730 1731 1818 Neighborhood Services inspections performed 7003 6888 8398 Average time for NHS initial inspection (days) 3 2 3 Signs removed from right-of-way 598 578 1144 Minor home repair applicants 34 40 35 Minor home repair projects funded 20 15 16

FY18 1981 14884 1475 6011 2 581 41 13

5. Infrastructure

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2: Administrative Summary Performance Measurements

FY15

FY16

FY17

FY18

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%

100%

100%

100%

100%

29.5

40

24.4

40

FY15

FY16

FY17

FY18

Perform preventative maintenance on all City maintained signals, street lights and school flashers annually (% Complete) Average number of days to complete customer initiated work orders

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

2,981 580 170 3

3,405 650 234 4

4,076 846 245 2

4,500 900 260 3

7. Culture/Arts As with Education, the inclusion of Culture/Arts as an adopted strategic vision area for the City Council is a new development. The FY18 Budget allows for the creation of a Cultural Arts Manager position to begin work in this area. At that time, benchmarks and performance will be established.

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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.

Fund

Name

Unaudited Balance 6/30/2017

FY18 Budget Add Less Revenue Expenditures

Projected Balance 6/30/2018

Net Change Amount Percent

GOVERNMENTAL FUNDS 100 General Fund Total Governmental Funds

26,351,552 26,351,552

68,856,006 68,856,006

67,190,459 67,190,459

28,017,098 28,017,098

SPECIAL REVENUE FUNDS 200 Parks & Recreation Fund 201 Gamber Center 202 Legacy Park Community Ctr 203 Summit Waves 204 Cemetery Trust Fund 220 Business & Industry Fund 230 Road & Bridge Escrow 240 Entitlement Fund 245 VAWA Grant Fund 260 Postclosure Trust Fund 275 Public Safety Equip Replcmt Fd Total Special Revenue Funds

2,378,588 430,090 1,343,250 1,906 1,310,088 344,222 183,804 (108,978) 438,688 5,185,540 241,084 11,748,283

3,455,964 536,021 2,069,387 653,383 264,370 395,372 0 369,299 212,001 175,000 86,694 8,217,491

3,312,717 492,863 1,928,492 638,386 225,597 398,544 0 395,011 212,000 0 0 7,603,612

2,521,835 473,247 1,484,145 16,902 1,348,861 341,050 183,804 (134,690) 438,689 5,360,540 327,778 12,362,162

3,156,679 7,285 118,609 2,259 87,554 123,077 181,179 90,476 (5,453,751) 99,729 (2,231,537) 2,567,474 16,138,769 11,820,383 5,045,430 14,185 (16,813,033) 28,749,025 (3,536) 5,030,860 567,681 3,008,519 116 (1,463,614) 14,790 430,812 679 (3,713,112) 266,035 0 (300,000) (695,083) 46,847,940

2,605,776 0 840,161 17,000 0 326,016 32,000 125,256 1,693,684 0 1,524,594 219,319 4,260,738 4,075,532 775,965 0 8,921,000 7,612,789 0 7,612,789 0 0 0 0 100,000 0 0 5,000 0 5,000 25,000 0 40,777,619

2,646,876 0 850,639 17,001 0 334,212 32,001 126,622 1,755,508 504,000 1,438,026 2,035,000 15,637,000 3,076,000 1,150,000 0 8,921,000 7,475,000 0 1,144,504 1,900,000 0 0 0 30,000 0 0 5,001 0 5,001 25,001 13,000,000 62,108,391

3,115,579 7,285 108,131 2,258 87,554 114,882 181,178 89,110 (5,515,575) (404,271) (2,144,969) 751,793 4,762,507 12,819,915 4,671,395 14,185 (16,813,033) 28,886,814 (3,536) 11,499,146 (1,332,319) 3,008,519 116 (1,463,614) 84,790 430,812 679 (3,713,113) 266,035 (1) (300,001) (13,695,083) 25,517,167

DEBT SERVICE FUNDS 400 General Obligation Debt 410 Park COP Debt 415 Revenue Bonds - Dpr & Repl Total Debt Service Funds

6,530,004 2,981,966 (2,733,553) 6,778,417

8,100,601 4,166,200 0 12,266,801

8,519,600 2,724,405 0 11,244,005

6,111,005 4,423,761 (2,733,553) 7,801,213

(418,999) 1,441,795 0 1,022,796

-6.42% 48.35% 0.00% 15.09%

ENTERPRISE FUNDS 500 Water/Sewer Fund 510 Airport Fund 520 Solid Waste Management 530 Harris Park Community Ctr Total Enterprise Funds

13,139,901 21,793,603 (3,781,336) 163,251 31,315,418

37,850,839 10,440,258 588,430 1,670,914 50,550,441

40,860,382 11,462,427 2,111,171 1,552,812 55,986,791

10,130,358 20,771,435 (5,304,077) 281,353 25,879,068

(3,009,543) (1,022,169) (1,522,741) 118,102 (5,436,350)

-22.90% -4.69% 40.27% 72.34% -17.36%

INTERNAL SERVICE FUNDS 600 Central Building Services 610 Fleet Operations 620 ITS Services 630 Short Term Disability Fnd 640 Unemployment Trust Fund 650 Claims & Damages Reserve Fund 660 Work Comp Self Insurance 670 Health Insurance Reserve Fund Total Internal Service Funds

2,402,073 (4,838,695) (461,980) 128,591 62,881 184,788 1,807,855 1,138,858 424,372

1,613,443 2,340,617 3,780,610 34,944 60,720 1,357,183 1,034,192 0 10,221,709

1,737,262 5,163,561 4,082,428 38,015 32,262 845,625 1,034,191 726,680 13,660,025

2,278,254 (7,661,639) (763,798) 125,520 91,340 696,346 1,807,856 412,178 (3,013,944)

(123,819) -5.15% (2,822,944) 58.34% (301,818) 65.33% (3,071) -2.39% 28,458 45.26% 511,558 276.84% 1 0.00% (726,680) -63.81% (3,438,316) -810.21%

190,890,068

217,793,284

96,562,764

CAPITAL PROJECT FUNDS 300 SummitWoods East TIF 301 SmtWds East TIF Amendment 303 I470 Business Center TIF 304 SummitWoods TDD 306 Chapel Ridge TIF 307 Longview Farm TIF (old TIF) 308 Longview TDD 309 Ritter Plaza TIF 312 Todd George/50 Hwy TIF 313 Water District No. 14 314 Water Tap Fund 315 Sewer Tap Fund 316 Water Construction 317 Sewer Construction Fund 318 WU Equipment Replacement 319 ERP System 321 Airport Construction 322 Capital Imprvmt Sales Tax 323 R & B Excise Tax 324 Road & Bridge Improvement 327 Park Development Fund 338 Storm Water Improvements 341 Infrastructure Improv '10 343 Tudor Rd Improvemnts 2010 345 TIF Application Fund 346 Cultural Arts 2013 347 Road Improvements 2013 348 Blue Pkwy & Colbern Rd CID Fnd 349 US 50/Rte 291 S Intrch Bonds 350 Paragon Star TIF 351 Longview Farm 2016 TIF 352 Public Safety Bonds 2016 Total Capital Project Funds

GRAND TOTAL

123,465,981

City of Lee’s Summit Annual Budget FY18

1,665,546 1,665,546

143,247 43,158 140,895 14,997 38,773 (3,172) 0 (25,712) 1 175,000 86,694 613,879

6.32% 6.32%

6.02% 10.03% 10.49% 786.98% 2.96% -0.92% 0.00% 23.59% 0.00% 3.37% 35.96% 5.23%

(41,100) -1.30% 0 0.00% (10,478) -8.83% (1) -0.04% 0 0.00% (8,196) -6.66% (1) 0.00% (1,366) -1.51% (61,823) 1.13% (504,000) -505.37% 86,568 -3.88% (1,815,681) -70.72% (11,376,262) -70.49% 999,532 8.46% (374,035) -7.41% 0 0.00% 0 0.00% 137,789 0.48% 0 0.00% 6,468,285 128.57% (1,900,000) -334.69% 0 0.00% 0 0.00% 0 0.00% 70,000 473.29% 0 0.00% 0 0.00% (1) 0.00% 0 0.00% (1) 0.00% (1) 0.00% (13,000,000) 1870.28% (21,330,772) -45.53%

(26,903,216)

-21.79%

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Combined Revenues by Type General PROPERTY TAX-Property taxes 20,508,192 SALES TAX-Sales tax 16,197,424 FRANCHISE TX-Franchise tax 13,037,427 MOTOR VEH TX-Motor vehicle taxes 3,671,162 BED TAX-Bed tax 0 OTHER TAXES-Other taxes 324,597 FINES & FORF-Fines and forfeitures 1,405,838 INTERGOVT-Intergovernmental 1,008,067 LIC & PERMIT-Licenses and permits 2,411,880 CHRG FOR SER-Charges for services 7,570,459 MATRL & FUEL-Material and fuel sales 0 INVEST EARNG-Investment earnings 56,845 OTHER-Other 1,659,600 BOND PROC/PR-Bond Proceeds/Premiums 0 INTRDEPT REV-Interdepartment revenues 0 TRANSFERS IN-Transfers in 1,004,515 SALE OF PROP-Sale of property 0 Grand Total 68,856,006

Special Debt Capital Internal Revenue Service Projects Enterprise Service Total 3,211,119 0 3,576,878 0 0 27,296,189 0 4,171,200 16,717,876 0 0 37,086,500 0 0 0 0 0 13,037,427 0 0 0 0 0 3,671,162 394,372 0 0 0 0 394,372 2,500 0 0 0 0 327,097 21,170 45,160 29 296,111 0 1,768,308 581,300 0 572,985 8,474,950 0 10,637,302 0 0 0 80,204 0 2,492,084 2,985,905 0 1,711,573 38,910,507 0 51,178,444 190,144 0 0 984,455 0 1,174,598 21,100 39,000 216,626 95,930 20,500 450,001 143,570 0 105,000 935,017 326,640 3,169,827 0 -60,000 0 0 0 -60,000 0 0 0 0 8,899,077 8,899,077 571,812 0 17,876,652 773,267 305,465 20,531,711 94,500 0 0 0 670,027 764,527 8,217,491 4,195,360 40,777,619 50,550,441 10,221,709 182,818,627

Combined Expenses by Type Personal Services Supplies for Resale Other Supplies and Services Repairs and Maintenance Utilities Fuel and Lubricants Depreciation Miscellaneous Debt Service and Interest Capital Outlay Construction Interdepartment Charges Transfers Out Total

General 45,806,644 245,000 10,181,400 1,485,895 1,734,766 556,097 0 236,825 0 54,902 0 6,314,969 573,961 67,190,458

Special Debt Capital Internal Revenue Service Projects Enterprise Service 3,880,858 0 0 5,995,759 3,641,090 0 0 0 16,872,499 0 2,409,289 113,600 5,784,860 4,352,468 3,549,602 534,917 0 0 563,068 617,701 410,797 0 0 632,831 319,849 34,977 0 0 64,073 3,350 0 0 0 5,142,971 1,604,738 19,912 0 0 70,119 3,000 0 10,955,405 43,001 1,253,652 0 234,625 0 0 184,810 3,532,175 -130,852 0 55,610,000 1,228,775 -67,108 326,175 0 0 805,661 524,830 62,790 175,000 670,530 19,023,389 26,041 7,783,487 11,244,005 62,108,391 56,190,076 13,755,268

Total 60,571,736 17,117,499 26,391,220 3,201,581 3,098,243 658,497 6,747,709 329,856 12,252,058 4,006,512 56,640,815 7,971,634 20,531,711 218,271,686

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 Balance

Est. Beginning Balance

Lee's Summit, Missouri, Combining Funds Statement By Fund Types Fiscal Year 2018 Special Debt Capital General Revenue Service Projects Enterprise 26,351,552 11,748,283 6,778,417 46,847,940 31,315,418

Internal Service

Total

424,372 123,465,982

Revenues Transfers In Total Revenues

67,851,491 7,645,679 12,266,801 22,900,967 49,777,174 9,916,244 170,358,356 1,004,515 571,812 0 17,876,652 773,267 305,465 20,531,711 68,856,006 8,217,491 12,266,801 40,777,619 50,550,441 10,221,709 190,890,068

Less: Expenditures Transfers Out

66,616,498 7,540,822 11,049,005 61,437,861 36,963,402 13,633,984 197,241,572 573,961 62,790 175,000 670,530 19,023,389 26,041 20,531,711

Ending Balance

28,017,099 12,362,162 7,821,213 25,517,168 25,879,068 -3,013,944 96,652,764

Fund Balance Change Amount Percent

1,665,547 6.32%

613,879 1,022,796 -21,330,772 -5,436,350 -3,438,316 -26,903,216 5.23% 15.09% -45.53% -17.36% -810.21% -21.79%

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 2017. 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. City of Lee’s Summit Annual Budget FY18

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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 FY17 Budget FY17 FY18 Department Budget Budget $ % Administration 3,807,101 3,893,818 86,717 2.28% Public Works/Engineering 5,321,876 5,591,202 269,326 5.06% Law Enforcement 19,629,141 19,921,760 292,619 1.49% Fire/EMS Services 16,718,365 17,758,282 1,039,917 6.22% Finance 8,046,556 8,582,255 535,699 6.66% Legal Services 1,271,229 1,398,271 127,042 9.99% Municipal Court 841,616 877,203 35,587 4.23% PW Operations Division 5,018,924 4,936,363 -82,561 -1.64% Development Center 3,207,042 3,597,057 390,015 12.16% Planning & Neighborhood Srvcs 535,170 634,248 99,078 18.51% Special Revenue Fund Departments Parks & Recreation 3,272,170 3,312,717 40,547 1.24% Gamber Center 474,121 492,864 18,743 3.95% Legacy Park Community Center 1,706,985 1,928,493 221,508 12.98% Summit Waves Aquatic Center 641,685 638,386 -3,299 -0.51% Cemetary 231,034 225,597 -5,437 -2.35% Enterprise Fund Departments Water Utilities 40,237,585 40,860,381 622,796 1.55% Airport 9,766,197 11,462,427 1,696,230 17.37% Solid Waste (Landfill) 4,562,341 2,111,171 -2,451,170 -53.73% Harris Park Community Center 1,480,717 1,552,812 72,095 4.87% Internal Service Fund Departments Central Building Services 1,668,059 1,737,262 69,203 4.15% Fleet 5,744,191 5,163,561 -580,630 -10.11% ITS (Information Technology) 4,870,227 4,082,428 -787,799 -16.18%

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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 =

FTE 0.72

Full Time Equivalents (FTEs) Change from FY 2017 Fund FY 2016 FY 2017 FY 2018 # % General Fund 526.11 539.58 548.10 8.52 1.58% Parks & Recreation 111.52 110.89 111.54 0.65 0.59% Water Utilities 60.50 60.50 62.50 2.00 3.31% Airport 6.26 7.46 9.16 1.70 22.79% Solid Waste 14.80 1.00 1.00 0.00 0.00% Central Building Services 10.62 10.62 8.62 -2.00 -18.83% Fleet 9.12 9.12 9.12 0.00 0.00% ITS 24.71 27.76 28.05 0.29 1.04% Total 763.64 766.93 778.09 11.16 1.46%

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3: Budget Overview Key Financial Trends The City’s Finance & 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 FY18, 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 FY17 that forecasted significant revenue growth and reduced expenditures. Total General Fund revenue for FY17 is anticipated to finish $1.5m, or 2.3%, above FY16 amounts. Additionally, the City began review of user fees in FY16 and charges which will continue annually. 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 Finance & Budget Committee review. The largest category of expenditures, excluding capital costs, is 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. The FY18 budget anticipates a 10% increase in health insurance costs.

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The FY18 Budget sets aside $2 million for wage adjustments to be identified by the compensation and benefit study currently underway. Because the funds are unallocated, the reserve balance reflects an increase of $1.6 million over FY17 projection. This will decrease as the funds are appropriated. The FY18 Budget appropriates $510,367 in one-time expenditures for capital expansions, IT software upgrades, and the Unified Development Code recodification. General Fund Reserve Balance (in $millions)

The FY18 Adopted Budget, as outlined in the ordinance, followed recommendations from the Finance & Budget Committee. For more information about these recommendations please see the General Fund Overview Section.

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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 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.

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Governmental Fund Types The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) requiring separate accounting because of legal or regulatory provisions or administrative action. The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, principal, interest and fiscal charges on long-term obligations other than obligations payable from the operations of Proprietary Fund Types. Capital Project Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities other than those financed by Proprietary Fund Types or Expendable Trust Funds. Proprietary Fund Types Enterprise Funds are used to account for operations which provide a service to the general public and are financed primarily by user charges from such services. Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. Fiduciary Fund Types Expendable Trust Funds are used to account for assets held in trust by the City for others. The City’s Expendable Trust Funds include the Entitlement Fund. Account Groups The General Fixed Assets Account Group is established to account for all fixed assets of the City other than those accounted for in the Proprietary Fund Types. Construction in progress, which recognizes the value of assets not completed, is also included in this fund. The General Long-Term Debt Account Group is established to account for all long-term indebtedness of the City except that accounted for in the Proprietary Fund Types. Basis of Accounting The accounting and financial reporting applied to a fund is determined by its measurement focus. All Governmental Fund Types and Expendable Trust Funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.

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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. Licenses, fees, fines, forfeitures and other revenues are generally not susceptible to accrual and are recorded when received in cash.

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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 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.

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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.

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

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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 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.

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3: Budget Overview 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 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.

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3: Budget Overview 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 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.

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3: Budget Overview 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.

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3: Budget Overview 2017 – 2018 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.

FY18 Budget Calendar Overview August 1, 2016 4:00 PM August 29, 2016 4:00 PM August 30, 2016 October 3, 2016 4:00 PM October 24, 2016 October 24, 2016 November 7, 2016 4:00 PM November 9, 2016 December 5, 2016 4:00 PM December 5, 2016 December 6, 2016 December 7, 2016 December 8, 2016 January 2, 2017 4:00 PM January 2017 January 9, 2017 January 16, 2017 January 27, 2017 February 6, 2017 4:00 PM February 6, 2017 February 6, 2017 February 20, 2017 February 2017 March 6, 2017 4:00 PM (Rescheduled) April 17, 2017 5:00 PM April 24, 2017 5:00 PM April 2017 April 2017 May 1, 2017 5:00 PM May 2, 2017 May 8, 2017 5:00 PM May 15, 2017 5:00 PM May 18, 2017 6:15 PM June 1, 2017

August 2016 Regular Finance & Budget Committee Meeting Agenda: Review FY18 Budget Process (Calendar), Levy Discussion Regular Finance & Budget Committee Meeting (rescheduled from September 5) Agenda: Public Safety upgrades MT meeting: Prep for FY18 Budget Process; Review Calendar; Set Action Items October 2016 Regular Finance & Budget Committee Meeting Agenda: Rollover Amendment, Dashboards, Storm water infrastructure funding(?) Budget Kickoff Meeting Departments begin preparing mid year projections November 2016 Regular Finance & Budget Committee Meeting Agenda: Discussion of Use Tax, Dashboards Pre-budget meeting with Internal Service Departments December 2016 Regular Finance & Budget Committee Meeting Agenda: Dashboards, Chamber PSA, Downtown PSA LBP Training: Navigation and Entry (2:00pm in the ITS Training Room) LBP Training: Navigation and Entry (11:00am 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 2017 Regular Finance & Budget Committee Meeting Agenda: Dashboards Departments prepare FY18 budget requests All FY17 year end projections due City Manager Review of FY17 YE Projections Core Expenditure Numbers due February 2017 Regular Finance & Budget Committee Meeting Agenda: Review of FY17 Year End Projections, Dashboards , Tentative Audit Report 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 Parks and Recreation budget to Park Board March 2017 Regular Finance & Budget Committee Meeting Agenda: FY18 revenue projections, Changes to Schedule of Fees, Report on Records Mgmt Audit April 2017 Regular Finance & Budget Committee Meeting Agenda: Dashboards Special Finance & Budget Committee Meeting: Agenda: Presentation of City Manager's proposed FY18 Budget Department budget meetings with City Manager conclude Annual Report to City Council (TBD) May 2017 Regular Finance & Budget Committee Meeting Agenda: Continued Discussion of FY18 Budget Notice of public hearing due by noon Special Finance & Budget Committee Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget Special Finance & Budget Committee Meeting: (If needed) Agenda: Continued review of City Manager's proposed budget City Council Meeting: PUBLIC HEARING June 2017 City Council Meeting: Vote on Ordinance

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3: Budget Overview

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. 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:

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3: Budget Overview 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 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.

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

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3: Budget Overview particular issue of the city. The financial advisor and or employees of the financial advisor shall not have made political contributions to any candidate for public office in the city for a period of two years preceding their selection as financial advisor. Method of Bond Sale When appropriate, new debt issues will be offered utilizing the competitive bid process. In a competitive sale, the financial advisor will assist in determining the structure and timing of the issue, prepare bond documents and rating agency presentations and evaluate the best bid and assist in the closing transaction. Refunding of Existing Debt The city will consider undertaking a refunding when one or more of the following three conditions exist: 1.

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

2.

The city wishes to restructure debt service.

3.

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

Financial Underwriter The financial underwriter shall determine which bid for the city's bonds is best by reviewing the pricing of comparable issues, talking to potential investors, identifying other similar issues that are likely to be in the market at the same time, and assessing the level of competition among various underwriting firms utilizing the Negotiated Sale process. The financial underwriter and or employees of the financial underwriter shall not have made political contributions to any candidate for public office in the city, for a period of two years preceding their selection as financial underwriter. 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.

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3: Budget Overview 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

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.

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

63-20 Corporations (Municipal Building Authority) 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.

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3: Budget Overview Adequate financial feasibility studies should be performed for all innovative financing proposals such as lease and lease-purchase agreements, tax increment financing, pool participation, and special assessment projects. Long term borrowing will be confined to construction of capital improvements and acquisition of capital equipment too large to be financed from current revenues. Proceeds from long-term debt should only be used for design and construction project costs, acquisition of other fixed assets, bond issue costs, debt service reserve requirements, and refunding of outstanding bond issues and will not be used for current, ongoing operations. Debt will be extinguished within a period not to exceed the expected useful life of the capital project or equipment. The City's financial management policies should be oriented to maintain a balanced relationship between issuing debt and pay as you go financing.

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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 72% 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 FY18, modest growth was budgeted in property and sales tax revenues but remained flat for franchise taxes. 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 2017—all AV from 2016), and, limits the increase in 2018 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 FY18, CY2017, of real and personal property values. Previously assessed value has increased. Due to New Construction growth, property tax receipts are expected to rise 1.7% over FY17 Projected despite an anticipated levy rollback.

$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 2009

Collection/ Distribution Year 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

2011

2013

2015

2017

2018

Fund Category Annual

General Fund 14,602,478 14,547,687 14,892,688 15,848,556 17,105,687 17,157,136 18,709,442 19,149,720 19,341,788 20,004,833 20,508,192

Parks Fund 2,585,937 2,585,795 2,637,233 2,815,820 3,027,000 3,034,833 3,080,222 3,131,869 3,186,691 3,186,691 3,211,119

Debt Service Fund 7,888,020 7,895,226 7,773,817 7,594,422 8,024,576 7,894,182 7,967,013 8,332,556 8,071,441 8,071,441 8,071,441

Percent

TOTAL 25,076,435 25,028,708 25,303,738 26,258,798 28,157,263 28,086,151 29,756,677 30,614,145 30,599,920 31,262,965 31,790,752

Change 2.9% -0.2% 1.1% 3.8% 7.2% -0.3% 5.9% 2.9% 0.0% 2.1% 1.7%

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4: Revenue Projections

Property Tax - Statistics Statistics:

The table to the left shows the growth in assessed valuation of both real and personal property in the City.

ASSESSED VALUATION FY09, CY 2008 FY10, CY 2009 FY11, CY2010 FY12, CY2011 FY13, CY2012 FY14, CY2013 FY15, CY2014 FY16, CY2015 FY17, CY2016 FY18, CY2017

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL PRELIMINARY

% Change 1.3% -1.0% -0.1% -2.0% 1.1% 3.3% -0.4% 6.3% 2.9% 6.2%

1,671,089,311 1,655,032,644 1,654,009,573 1,620,849,484 1,638,685,805 1,692,175,370 1,686,144,194 1,792,337,036 1,844,106,043 1,958,680,928

As State-mandated reassessments occur in oddnumbered years, the growth in even- numbered years is primarily attributable to new development. CY2017 change in assessed value primarily attributable to inflationary and market adjustments to property value. Additional growth attributable to new construction.

Levy Rates Parks $0.1539 $0.1539 $0.1595 $0.1595 $0.1630 $0.1630 $0.1630 $0.1600 $0.1608 $0.1567

General $0.8690 $0.8690 $0.8966 $0.8966 $0.9213 $0.9213 $0.9213 $0.9045 $0.9093 $0.8860

FY09, CY 2008 FY10, CY 2009 FY11, CY2010 FY12, CY2011 FY13, CY2012 FY14, CY2013 FY15, CY2014 FY16, CY2015 FY17, CY2016 FY18, CY2017

Debt Service $0.4697 $0.4697 $0.4697 $0.4697 $0.4697 $0.4697 $0.4697 $0.4697 $0.4697 $0.4697

Total Levy $1.4926 $1.4926 $1.5258 $1.5258 $1.5540 $1.5540 $1.5540 $1.5342 $1.5398 $1.5124

% Change 0.0% 0.0% 2.2% 0.0% 1.8% 0.0% 0.0% -1.3% 0.4% -1.4%

Levy Rates $1.8000 $1.6000 $1.4000 $1.2000 $1.0000

Debt Service Parks

$0.8000

General

$0.6000 $0.4000 $0.2000 $0.0000

CY 2008

CY 2009

CY2010

CY2011

CY2012

CY2013

CY2014

CY2015

CY2016

CY2017

A mill levy decrease is anticipated for FY18 comply with the Hancock Amendment. At time of publishing only preliminary values are available from Jackson and Cass Counties for CY2017.

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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

FY18 estimates project a moderate 3.4% increase over FY17

$35,000,000 $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

Collection/ Distribution Year 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

1.000% 0.500% 0.500% 0.250%

$23,000,000 $21,000,000 2009

Fund Category

General Fund

Park Development Fund

12,293,604 11,988,325 12,807,628 13,313,301 13,133,037 14,149,200 14,840,058 15,116,747 15,846,744 15,580,746 16,197,424

2,957,206 2,862,358 3,056,886 3,169,317 3,094,709 3,321,232 3,500,464 3,560,042 3,744,865 3,708,462 4,171,200

Transportation Tax Fund 5,834,171 5,720,233 6,116,282 6,337,138 6,190,196 6,641,048 7,024,992 7,121,477 7,568,179 7,568,179 7,612,789

2011

Capital Project Fund 5,995,944 5,991,814 6,402,173 6,655,532 6,565,125 7,073,186 7,418,888 7,557,410 7,568,179 7,568,179 7,612,789

2013

2015

2017

2018

Annual Percent

TOTAL 27,080,925 26,562,730 28,382,969 29,475,288 28,983,067 31,184,666 32,784,402 33,355,676 34,727,967 34,425,566 35,594,202

Change -5.2% -1.9% 6.9% 3.8% -1.7% 7.6% 5.1% 1.7% 3.3% 3.2% 3.4%

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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 FY18 all categories of Franchise Tax were budgeted to decrease following continued changes in demand, service price, customer choices, and milder weather.

$16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 2009

Collection/ Distribution Year 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

2011

2013

2015

2017

2018

General Fund Category Electric 5,752,438 6,424,501 6,879,663 7,013,016 6,897,629 7,031,470 6,970,491 6,989,610 7,179,755 7,153,326 7,116,302

Natural Gas 2,775,436 2,445,981 2,670,556 1,918,302 2,195,122 2,308,681 2,408,322 1,846,687 2,231,422 2,106,700 2,111,130

Telephone 3,194,742 4,838,274 5,525,907 3,739,688 3,668,256 3,490,461 3,148,218 2,870,126 2,731,898 2,673,771 2,452,864

Cable 1,014,328 1,116,837 1,173,511 1,072,791 1,319,367 1,253,171 1,343,734 1,362,055 1,381,812 1,375,836 1,357,131

TOTAL 12,736,944 14,825,593 16,249,638 13,743,797 14,080,374 14,083,783 13,870,765 13,068,478 13,524,887 13,309,633 13,037,427

City of Lee’s Summit Annual Budget FY18 70 of 207


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 FY18 is projected to decrease 9.9% over FY17 budgeted amounts as a result of the anticipated termination of the Chapel Ridge TIF Plan

$3,200,000 $2,700,000 $2,200,000 $1,700,000 $1,200,000 $700,000 $200,000 2009

Collection/ Distribution Year 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

Fund Category

General Fund

Park Development Fund

1,474,003 1,327,463 1,508,982 1,576,913 56,916 565,063 694,189 846,299 710,386 863,256 628,013

392,347 331,991 377,262 394,228 14,229 141,266 173,547 212,009 177,597 214,000 221,200

Transportation Tax Fund 737,002 663,981 754,491 788,456 28,458 282,531 347,095 423,150 355,193 355,193 295,166

2011

2013

Capital Project Fund 658,488 663,981 754,491 788,456 28,458 282,531 347,095 423,150 355,193 355,193 295,166

2015

2017

2018

Annual Percent

TOTAL 3,261,840 2,987,416 3,395,227 3,548,053 128,061 1,199,927 1,561,925 1,904,608 1,598,369 1,787,642 1,439,545

Change 5.3% -8.4% 13.7% 4.5% -96.4% 837.0% 30% 21.9% -16.1% -6.1% -9.9%

City of Lee’s Summit Annual Budget FY18 71 of 207


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 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2009

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. 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.

Collection/ Distribution Year 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

2011

2013

2015

2017

2018

Fund Category General Fund 685,679 839,760 832,033 937,569 1,015,795 954,808 1,289,492 1,453,631 1,581,526 1,827,424 1,790,468

Special Revenue Funds

Tax Increment Financing Funds

------------

5,329,992 6,667,397 7,504,450 6,199,020 6,198,679 4,590,048 4,262,286 4,332,343 4,340,178 4,340,178 3,576,056

Annual Percent

TOTAL 6,015,671 7,507,157 8,336,482 8,336,482 7,214,474 5,544,856 5,551,778 5,785,974 5,921,704 6,167,602 5,366,524

Change 42.2% 24.8% 11.0% 0.0% -13.5% -23.1% 0.1% 4.2% 2.3% 6.6% -9.4%

City of Lee’s Summit Annual Budget FY18 72 of 207


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. determined where the vehicle is titled.

Sales tax rate is

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 FY18, 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 2009

Collection/ Distribution Year 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

Vehicle Fuel Tax

2011

2013

2015

2017

2018

General Fund Category

1,956,477 1,970,976 1,980,610 2,170,623 2,306,425 2,330,205 2,387,630 2,475,178 2,241,240 2,408,134 2,475,178

Vehicle Sales Tax

371,754 385,201 420,857 500,104 574,002 683,598 732,706 768,473 707,503 749,807 796,027

Vehicle License/Transfer Fee 308,086 307,527 310,500 357,738 381,790 383,510 393,868 402,735 415,765 402,000 399,957

Annual Percent

TOTAL 2,636,317 2,663,704 2,711,968 3,028,465 3,262,217 3,397,313 3,514,204 3,646,386 3,364,508 3,559,941 3,671,162

Change -6.3% 1.0% 1.8% 11.7% 7.7% 4.1% 3.4% 3.8% -7.7% -2.4% 9.1%

City of Lee’s Summit Annual Budget FY18 73 of 207


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 for FY18 assumes an interest rate of 0.25% on investments. A prolonged trend of low interest rates has decreased revenues over the last 10 years.

$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2007

Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

Fund Category

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 74,823 206,650 64,103 45,057 56,845

3,816,990 3,129,419 1,820,754 245,393 646,426 485,765 544,765 34,764 454,300 219,283 382,503 388,627 276,726

Enterprise Funds 2,588,566 2,709,663 1,401,400 145,272 325,226 92,118 125,239 38,500 114,208 113,467 77,627 69,069 95,930

2009

2011

2013

Internal Service Funds 610,667 612,772 296,883 15,160 57,123 34,994 68,111 56,593 24,101 18,869 17,757 17,757 20,500

2015

2017

2018

TOTAL 8,341,227 7,399,091 4,177,193 589,322 1,309,927 703,541 890,167 220,521 667,432 558,269 541,990 520,510 450,001

City of Lee’s Summit Annual Budget FY18 74 of 207


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 FY18, 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

Collection/ Distribution Year 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

Fund Category

General Fund 177,016 164,403 95,963 152,952 222,895 129,624 183,576 122,004 172,780 163,710 35,899 35,899 95,000

Special Revenue Funds

494,369 660,738 392,592 326,168 194,792 386,146 390,021 376,666 357,247 560,614 357,337 357,337 581,300

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 2,273,756 6,949,250 6,949,250 8,028,900

2009

2011

2013

Capital Project Funds 3,748,385 2,496,782 0 0 0 0 0 4,738,000 0 2,528,851 0 0 0

2015

2017

2018

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 5,526,931 7,342,486 7,342,486 8,705,200

City of Lee’s Summit Annual Budget FY18 75 of 207


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 July 1, 2017): Water Base Meter Size Meter Size Charge (Inches) Water Base Charge (Inches) 5/8" $9.53 3" $19.59 3/4" $9.53 4" $42.72 1" $10.68 6" $65.85 1 1/2" $11.49 8" $97.92 2" $14.41 10" $238.10

Financial Trend $21,000,000

$19,000,000

$17,000,000

$15,000,000

Water Volume Rates (Effective July 1, 2017): Commercial Rate $4.82 per 1,000 gallons Residential Rates for the first 7,000 gallons 7,001 to 15,000 gallons Over 15,000 gallons

$4.09 per 1,000 gallons $4.82 per 1,000 gallons $6.02 per 1,000 gallons

$13,000,000

Water Sales

$11,000,000

Sewer Charges $9,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2018

Monthly Sewer Base Rates (Effective July 1, 2017): Meter Size Water Base Meter Size Water Base Charge (Inches) Charge (Inches) 5/8" $13.55 3" $23.70 3/4" $13.55 4" $30.47 1" $20.32 6" $40.63 1 1/2" $20.88 8" $50.78 2" $22.01 10" $62.08 Sewer Volume Rates (July 1, 2017): All Usage $5.17 per 1,000 gallons

Collection/ Distribution Year 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2017 Projected 2018 Budget

Water/Sewer Fund Category Water Sales 11,401,342 10,772,114 11,626,441 13,577,053 15,413,579 16,183,498 15,269,508 17,119,545 18,229,643 18,078,583 18,798,574

Sewer Charges 13,321,285 13,248,819 13,632,552 13,876,449 13,951,872 15,030,363 15,454,532 16,529,622 17,222,333 17,263,227 17,640,233

TOTAL 24,722,627 24,020,933 25,258,994 27,453,502 29,365,451 29,325,742 30,724,040 33,649,167 35,451,976 35,341,810 36,438,807

City of Lee’s Summit Annual Budget FY18 76 of 207


SECTION 5: GENERAL FUND OVERVIEW

77 of 207


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, Development Services, Finance, Law, Municipal Court, Planning & Special Projects, 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 FY18

78 of 207


5: General Fund Overview General

GENERAL FUND BUDGET SUMMARY YEAR BEGINNING JULY 1, 2017

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 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 ACTUAL

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 $

51,287,969 $ 2,546,789 1,508,416 206,650 991,744 4,572,805 1,914,858 1,935,428 64,964,659 $

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

52,785,952 $ 2,706,610 1,372,331 45,057 898,990 6,025,244 1,559,545 954,515 66,348,244 $

53,738,802 2,411,880 1,405,838 56,845 1,008,067 7,570,459 1,659,600 1,004,515 68,856,006

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 $

41,904,111 $ 174,224 7,485,369 6,502,557 1,997,574 0 1,456,655 0 63,890 59,584,380 $

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

44,681,361 $ 235,000 10,379,787 7,242,083 2,253,758 635,000 568,210 0 278,396 66,273,595 $

45,806,644 245,000 10,181,399 7,800,864 2,290,863 54,902 573,961 0 236,825 67,190,458

(886,725)

74,649

1,665,548

1,908,857

2,421,525

2,565,542

FY 2017 BUDGET

5,380,279

FY 2017 PROJECTED

FY 2018 BUDGET

Fund Balance, Beginning of Year

$

12,907,165 $

14,816,022 $

17,237,547 $

19,803,089 $

25,183,368 $

25,183,368 $

25,258,017

Fund Balance, End of Year

$

14,816,022 $

17,237,547 $

19,803,089 $

25,183,368 $

24,296,643 $

25,258,017 $

26,923,565

Net Unrestricted Fund Balance

12,485,754

15,393,241

16,740,463

20,601,442

19,714,717

19,789,366

21,454,914

Percentage of Expenditures (including transfers)

21.6%

26.3%

28.4%

34.6%

30.6%

29.9%

31.9%

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 2013

ACTUAL FY 2014

ACTUAL FY 2015

Revenue

City of Lee’s Summit Annual Budget FY18

Expenditures FISCAL

ACTUAL FY 2016

BUDGET FY 2017

PROJECTED FY 2017

BUDGET FY 2018

Fund Balance

YEAR

79 of 207


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 Service Investment Earnings Other Transfers In Total

FY17 Budget 19,341,788 15,136,358 13,524,887 3,364,508 332,640 1,412,986 1,786,379 826,253 5,271,476 64,103 1,494,400 954,515 63,510,293

FY17 Proj 20,004,833 15,580,746 13,309,633 3,559,941 330,798 1,372,331 2,706,610 898,990 6,025,244 45,057 1,559,400 954,515 66,348,100

Change from FY17 Budget Change from FY17 Proj FY18 Budget $ % $ % 20,508,192 1,166,404 6.03% 503,359 2.52% 16,197,424 1,061,066 7.01% 616,678 3.96% 13,037,427 -487,460 -3.60% -272,206 -2.05% 3,671,162 306,654 9.11% 111,221 3.12% 324,597 -8,043 -2.42% -6,201 -1.87% 1,405,838 -7,148 -0.51% 33,507 2.44% 2,411,880 625,501 35.02% -294,730 -10.89% 1,008,067 181,814 22.00% 109,077 12.13% 7,570,459 2,298,983 43.61% 1,545,215 25.65% 56,845 -7,258 -11.32% 11,788 26.16% 1,659,600 165,200 11.05% 100,200 6.43% 1,004,515 50,000 5.24% 50,000 5.24% 68,856,006 5,345,713 8.42% 2,507,906 3.78%

Summary of Significant Assumptions and Changes for FY18 • • •

Significant increase in Sales Tax forecast for FY18 primarily attributed to the termination of the Chapel Ridge TIF Plan. Approximately $240,000 will no longer be diverted from the General Fund for Economic Activity Taxes. Franchise Tax expected to decrease 3.6% from FY17 Budget. FY18 includes an increased ambulance fee (Charges for Service) which is expected to result in approximately $1.5 million as part of a 50% cost recovery initiative for the EMS program.

City of Lee’s Summit Annual Budget FY18

80 of 207


5: General Fund Overview General

General Fund Expenditures by Department

Department Administration Publice Works Engineering Law Enforcement Fire Department Finance Legal Services Municipal Court Public Works Operations Development Services Planning & Special Projects Total

FY17 FY17 FY18 Change from FY17 Budget Change from FY17 Proj Budget Proj Budget $ % $ % 3,807,101 4,225,962 3,893,818 86,717 2.28% -332,144 -7.86% 5,321,876 5,349,558 5,591,202 269,326 5.06% 241,644 4.52% 19,629,141 19,706,753 19,921,760 292,619 1.49% 215,007 1.09% 16,718,365 17,706,005 17,758,282 1,039,917 6.22% 52,277 0.30% 8,046,556 8,257,846 8,582,255 535,699 6.66% 324,409 3.93% 1,271,229 1,266,343 1,398,271 127,042 9.99% 131,928 10.42% 841,616 821,653 877,203 35,587 4.23% 55,550 6.76% 5,018,924 5,036,425 4,936,363 -82,561 -1.64% -100,062 -1.99% 3,207,042 3,394,970 3,597,057 390,015 12.16% 202,087 5.95% 535,170 507,935 634,248 99,078 18.51% 126,313 24.87% 64,397,020 66,273,596 67,190,458 2,793,438 4.34% 916,862 1.38%

Summary of Significant Assumptions and Changes • • •

$2 million set aside in yet-to-be identified wage adjustments through the Compensation and Benefit Study $1.2 million wage adjustment in Fire Department personnel costs as part of recent IAFF agreement in FY17. Full year costs budgeted in FY18. An increase of 10% for health insurance costs beginning at midyear (January 1, 2018).

City of Lee’s Summit Annual Budget FY18

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GeneralFund Overview 5: General

General Fund Expenditures by Type

Account Type Personal Services Supplies for Resale Other Supplies & Services Repairs and Maintenance Utilities Fuel and Lubricants Miscellaneous Capital Outlay Interdepartment Charges Transfers Out Total

FY17 FY17 FY18 Change from FY17 Budget Change from FY17 Proj Budget Proj Budget $ % $ % 43,489,284 44,681,361 45,806,644 2,317,360 5.33% 1,125,283 2.52% 235,000 235,000 245,000 10,000 4.26% 10,000 4.26% 9,486,986 10,379,787 10,181,399 694,413 7.32% -198,388 -1.91% 1,398,571 1,342,691 1,485,895 87,324 6.24% 143,204 10.67% 1,738,634 1,743,894 1,734,766 -3,868 -0.22% -9,128 -0.52% 564,153 509,864 556,097 -8,056 -1.43% 46,233 9.07% 341,790 278,396 236,825 -104,965 -30.71% -41,571 -14.93% 675,000 635,000 54,902 -620,098 -91.87% -580,098 -91.35% 5,899,392 5,899,392 6,314,969 415,577 7.04% 415,577 7.04% 568,210 568,210 573,961 5,751 1.01% 5,751 1.01% 64,397,020 66,273,596 67,190,458 2,793,438 4.34% 916,862 1.38%

City of Lee’s Summit Annual Budget FY18

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GeneralFund Overview 5: General

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 Public Works Engineering Law Enforcement Fire Department Finance Legal Services Municipal Court Public Works Operations Development Services Planning & Special Projects Total

FY16 Budget 27.39 33.80 202.00 144.00 22.00 10.25 11.29 38.00 27.68 9.70 526.11

FY17 Budget 26.99 41.10 202.00 153.00 22.00 10.55 11.87 34.20 33.86 4.01 539.58

Change from FY17 Budget FY18 Budget # % 27.98 0.99 3.67% 42.25 1.15 2.80% 205.50 3.50 1.73% 154.00 1.00 0.65% 22.00 0.00 0.00% 10.51 -0.04 -0.38% 11.38 -0.49 -4.13% 33.80 -0.40 -1.17% 36.68 2.82 8.33% 4.00 -0.01 -0.25% 548.10 8.52 1.58%

Personnel Changes Department Airport Airport Airport Central Building Services Fire Fire Police Public Works Engineering Public Works Engineering Public Works Engineering Public Works Engineering

Description FY18 Cost Recurring Cost Service Attendant $49,048 $48,799 Line Attendant $22,118 $43,124 Line Attendant $9,307 $43,109 Facilities Maintenance Worker $25,000 $25,000 Captain of Support Services $3,789 $3,789 Captain of Training $81,036 $76,469 Detention Officer (2 FTEs) $36,033 $36,033 Engineer $93,131 $91,611 Traffic Operations Technician (Reclassification) $0 $0 Senior Traffic Operations Technicians (Reclassification) $0 $0 Lead Traffic Operations Technician (Reclassification) $0 $0 Total Impact $319,462 $367,934 General Fund Impact $213,989 $207,902

Summary of Significant Assumptions and Changes • • •

Airport positions added to support expanded capacity upon the completion of the runway extension. Positions will be hired upon meeting fuel sale revenue performance benchmarks. Additional Facilities Maintenance Worker as part of a 50% cost share with the Downtown CID. Additional FTEs in Fire Department to expand training opportunities as well as implement recommendations from the recent accreditation. Voters in Lee’s Summit supported a renewal of the CIP Sales Tax. Planning and design of capital projects will be supported by the addition of an engineer in the Public Works Department

City of Lee’s Summit Annual Budget FY18

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GeneralFund Overview 5: General

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 FY18 budget process containing the information available at that time.

In FY16, the General Fund reserve balance increased $5.2 million as a result of greater than budgeted revenue and expenditures below budgeted levels. The reserve balance projected at FY17 year-end is expected to increase slightly after revenue was revised upward at mid-year. The originally-adopted budget called for $887,995 in one-time expenditures to be paid from the reserve balance. The FY18 budget contains $2 million in unallocated funds to be used for wage adjustments as wel as $510,367 in one-time capital expenditures from the reserve balance. Future years show a structural deficit once the $2 million is appropriated in FY18. This is primarily attributable to personnel costs increasing at a greater rate than anticipated revenues. Discussions must be had about how best to address the future fiscal years with recurring revenues. Possible solutions may include a use tax and reexamining user fees to ensure program costs are covered.

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 government’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 three years in the case of an extraordinary expenditure.

City of Lee’s Summit Annual Budget FY18

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SECTION 6: GENERAL FUND DEPARTMENT BUDGETS

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6: General Fund Department Budgets General

ADMINISTRATION Administration provides the general supervision and support for all departments within the City and also serves as the link between the elected governing body and the staff of the City’s departments. Administration 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.

City of Lee’s Summit Annual Budget FY18

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6: General Fund Department Budgets General

Administration FY18 Budget Summary Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

Difference FY17 Projected $

%

%

1,943,999

1,810,299

2,281,708

1,842,029

31,730

2%

(439,679)

(19%)

Policy/Legislative Oper.

580,217

649,614

688,889

551,709

(97,905)

(15%)

(137,180)

(20%)

Community Relations

365,579

503,588

418,991

563,750

60,162

12%

144,760

35%

HR Administration

426,315

497,048

482,347

566,692

69,643

14%

84,344

17%

Employee Services

181,303

232,396

240,371

255,854

23,458

10%

15,483

6%

Safety & Risk Management

106,160

114,156

113,656

113,784

(372)

(0%)

128

0%

3,603,574

3,807,101

4,225,962

3,893,818

86,717

2%

(332,144)

(8%)

Department Administration

Department Totals

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

Personal services Other supplies, services and charges Repairs and maintenance Miscellaneous

%

Difference FY17 Projected $

%

1,567,501

1,815,444

1,807,691

1,983,411

167,967

9%

175,720

10%

862,144

1,008,616

1,501,991

1,018,894

10,278

1%

(483,098)

(32%)

30,548

38,471

38,711

39,490

1,019

3%

779

2%

5,314

286,400

219,398

186,400

(100,000)

(35%)

(32,998)

(15%) (2%)

Interdepartment charges

153,211

182,257

182,257

178,356

(3,901)

(2%)

(3,901)

Transfers out

984,857

475,913

475,913

487,267

11,354

2%

11,354

2%

3,603,574

3,807,101

4,225,962

3,893,818

86,717

2%

(332,144)

(8%)

Department Totals

FY18 Expenses By Type Transf ers out 13% Interdepartment charges 5% Miscellaneous 5% Repairs and maintenance 1%

Other supplies, serv ices and charges 26%

City of Lee’s Summit Annual Budget FY18

Personal serv ices 51%

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GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY17 Budget

FY18 Budget

Difference FY17

Asst. City Mgr, Internal Svcs.

-0.36

0.00

0.00

0.00

Asst. City Mgr., Dev Svcs/Comm

0.34

0.34

0.33

-0.01

Asst. City Mgr., Operations

0.76

0.76

0.76

0.00

Benefits Specialist

1.00

1.00

1.00

0.00

City Clerk

1.00

1.00

1.00

0.00

City Communications Officer

1.00

0.00

0.00

0.00

City Councilmember

8.00

8.00

8.00

0.00

City Manager

1.00

1.00

1.00

0.00

Communications Director

1.00

0.00

0.00

0.00

Creative Services Manager

0.00

1.00

1.00

0.00

Creative Services Specialist

0.00

0.00

1.00

1.00

Cultural Arts Manager

0.00

0.00

1.00

1.00

Deputy City Clerk

1.00

1.00

1.00

0.00

Director of Administration

0.88

0.88

0.88

0.00

Director of Human Resources

1.00

1.00

1.00

0.00

Exec. Asst. to the City Mgr.

1.00

0.00

0.00

0.00

Exec. Asst. to the Mayor/CC

1.00

0.00

0.00

0.00

Executive Assistant

0.00

1.72

2.00

0.28

Human Resources Assistant

1.00

1.00

1.00

0.00

Human Resources Generalist

1.00

1.00

1.00

0.00

Management Analyst

1.00

0.00

0.00

0.00

Management Analyst - Admin.

0.00

1.00

1.00

0.00

Marketing Specialist

1.00

2.00

1.00

-1.00

Mayor

1.00

1.00

1.00

0.00

Media Services Supervisor

1.00

1.00

1.00

0.00

Payroll Support

0.29

0.29

0.01

-0.28

Performance Exc. Facilitator

0.12

0.00

0.00

0.00

Public Communications Coord.

0.00

1.00

1.00

0.00

Public Engagement Specialist

1.00

0.00

0.00

0.00

Risk Management Officer

1.00

1.00

1.00

0.00

27.03

26.99

27.98

0.99

Department Totals

City of Lee’s Summit Annual Budget FY18

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GeneralFund Department Budgets 6: General

Total Budget 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 Ex pens es Rev enue

2,000,000 1,500,000 1,000,000 500,000 0 -500,000 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

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GeneralFund Department Budgets 6: General

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

Municipal Court FY18 Budget Summary Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

Department Administration

136,562

125,251

139,233

144,288

19,038

15%

5,056

4%

Operations Division

421,632

480,507

464,227

519,612

39,105

8%

55,385

12%

Probation

129,045

125,478

125,478

127,106

1,627

1%

1,627

1%

Court Security Operations

101,704

110,380

92,715

86,197

(24,182)

(22%)

(6,518)

(7%)

Department Totals

788,944

841,616

821,653

877,203

35,588

4%

55,550

7%

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

Personal services

650,004

677,138

662,130

721,647

44,510

7%

59,517

9%

Other supplies, services and charges Repairs and maintenance

109,749

127,396

122,441

123,276

(4,120)

(3%)

835

1%

1,765

10,650

10,650

8,150

(2,500)

(23%)

(2,500)

(23%)

303

400

400

0

(400)

(100%)

(400)

(100%)

Miscellaneous Interdepartment charges Department Totals

27,124

26,032

26,032

24,130

(1,902)

(7%)

(1,902)

(7%)

788,944

841,616

821,653

877,203

35,588

4%

55,550

7%

FY18 Expenses By Type Interdepartment charges 3% Repairs and maintenance 1% Other supplies, serv ices and charges 14%

Personal serv ices 82%

City of Lee’s Summit Annual Budget FY18

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GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Accounting Technician

1.00

1.00

1.00

0.00

Bond Clerk

1.00

1.00

1.00

0.00

Court Administrator

1.00

1.00

1.00

0.00

Court Bailiff

0.01

0.48

0.00

-0.48

Court Security Officer

1.00

1.00

1.00

0.00

Deputy Court Clerk

2.30

2.43

2.43

0.00

Municipal Judge

1.18

1.15

1.15

0.00

Probation/Compliance Officer

2.00

2.00

2.00

0.00

Records Management Clerk

0.80

0.80

0.80

0.00

Warrant Clerk

1.00

1.00

1.00

0.00

11.29

11.87

11.38

-0.48

Department Totals

Total Budget 1,000,000

800,000

600,000

Ex pens es Rev enue

400,000

200,000

0

-200,000 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

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GeneralFund Department Budgets 6: General DEVELOPMENT SERVICES Development Services is comprised of 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. Development Services 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.

City of Lee’s Summit Annual Budget FY18

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GeneralFund Department Budgets 6: General

Development Services FY18 Budget Summary Expenses by Program and Services Difference FY17 Budget

FY16 Actual

Department Administration

13,114

0

0

0

0

0%

0

0%

Support To Development

(7,871)

0

0

0

0

0%

0

0%

Licensing

(3,112)

0

0

0

0

0%

0

0%

Neighborhood Services

73,967

273,765

272,445

0

(273,765)

(100%)

(272,445)

(100%)

Customer Service

67,734

69,759

69,519

0

(69,759)

(100%)

(69,519)

(100%)

Support to Development

400,493

363,835

363,645

0

(363,835)

(100%)

(363,645)

(100%)

Building Inspections

409,448

348,704

347,504

428,672

79,968

23%

81,168

23%

Engineering Inspections

598,501

456,198

472,043

472,676

16,477

4%

632

0%

Neighborhood Services

0

0

0

266,850

266,850

0%

266,850

0%

Development Engineering

225,235

279,092

263,939

421,385

142,294

51%

157,446

60%

Current Planning

234,685

254,596

235,835

287,665

33,069

13%

51,830

22%

Codes Administration

216,095

331,047

331,047

381,021

49,975

15%

49,975

15%

Department Administration

217,596

830,047

1,038,994

996,282

166,235

20%

(42,712)

(4%)

0

0

0

272,361

272,361

0%

272,361

0%

Project Management Licensing Department Totals

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Projected

Programs and Services

$

%

$

%

0

0

0

70,145

70,145

0%

70,145

0%

2,445,887

3,207,042

3,394,970

3,597,057

390,015

12%

202,087

6%

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

Personal services Other supplies, services and charges Repairs and maintenance Fuel and lubricants Miscellaneous Interdepartment charges Department Totals

%

Difference FY17 Projected $

%

2,058,960

2,600,772

2,792,105

2,851,223

250,451

10%

59,118

2%

140,118

249,240

246,035

278,574

29,334

12%

32,539

13%

54,468

77,134

77,134

84,660

7,526

10%

7,526

10%

12,286

26,926

26,926

35,080

8,154

30%

8,154

30%

1,335

10,800

10,600

6,500

(4,300)

(40%)

(4,100)

(39%)

178,720

242,170

242,170

341,020

98,850

41%

98,850

41%

2,445,887

3,207,042

3,394,970

3,597,057

390,015

12%

202,087

6%

FY18 Expenses By Type Interdepartment charges 9% Miscellaneous 0% Fuel and lubricants 1% Repairs and maintenance 2% Other supplies, serv ices and charges 8% Personal serv ices 79%

City of Lee’s Summit Annual Budget FY18

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GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Administrative Support

0.02

0.20

0.01

-0.19

Asst. City Mgr., Dev Svcs/Comm

0.66

0.66

0.67

0.01

Asst. Dir. of Field Services

0.00

0.00

1.00

1.00

Asst. Dir. of Plan Services

1.00

1.00

1.00

0.00

Asst. Director of Codes Admin.

0.00

1.00

0.00

-1.00

Business Service Rep - Dev Ctr

1.00

1.00

1.00

0.00

Codes Administration Manager

0.00

0.00

1.00

1.00

Community Standards Officer

0.00

1.00

1.00

0.00

Current Planning Manager

0.00

0.00

1.00

1.00

Customer Service Rep - Dev Ctr

1.00

0.00

0.00

0.00

Development Engineering Mgr.

1.00

1.00

1.00

0.00

Development Technician

0.00

1.00

1.00

0.00

Director of Development Center

1.00

1.00

0.00

-1.00

Director of Development Svcs.

0.00

0.00

1.00

1.00

Field Building Inspector

3.00

3.00

4.00

1.00

Field Engineering Inspector

5.00

5.00

6.00

1.00

Field Services Manager

1.00

1.00

0.00

-1.00

Management Analyst

0.00

1.00

1.00

0.00

Neighborhood Services Officer

0.00

3.00

3.00

0.00

Permit Technician

2.00

2.00

2.00

0.00

Planner

2.00

2.00

2.00

0.00

Planning Division Manager

1.00

1.00

0.00

-1.00

Plans Examiner

1.00

1.00

1.00

0.00

Project Manager - Dev. Ctr.

3.00

3.00

3.00

0.00

Secretary

2.00

2.00

2.00

0.00

Senior Field Inspector

1.00

0.00

0.00

0.00

Senior Staff Engineer

1.00

1.00

2.00

1.00

Sr. Field Building Inspector

0.00

1.00

1.00

0.00

27.68

33.86

36.68

2.82

Department Totals

Total Budget 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 Ex pens es Rev enue

1,500,000 1,000,000 500,000 0 -500,000 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

95 of 207


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.

City of Lee’s Summit Annual Budget FY18

96 of 207


GeneralFund Department Budgets 6: General

Finance FY18 Budget Summary Expenses by Program and Services Difference FY17 Budget

FY18 Budget

Difference FY17 Projected

Programs and Services

FY16 Actual

Department Administration

2,282,665

2,752,486

2,714,082

2,752,479

(7)

(0%)

38,397

1%

659,435

765,183

765,183

753,383

(11,801)

(2%)

(11,801)

(2%)

1,935,307

2,142,555

2,397,649

2,517,827

375,272

18%

120,178

5%

Support To Development

176,548

101,359

101,359

147,498

46,139

46%

46,139

46%

Procurement & Contract Svcs.

343,261

392,906

387,506

394,019

1,113

0%

6,513

2%

Municipal Billing

1,046,986

1,892,067

1,892,067

2,017,049

124,982

7%

124,982

7%

Department Totals

6,444,202

8,046,556

8,257,846

8,582,255

535,699

7%

324,409

4%

Accounting & Payroll Services Debt & Cash Management

FY17 Budget

FY17 Projected

$

%

$

%

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Personal services

1,534,740

1,618,560

1,577,099

1,657,752

39,192

2%

80,653

5%

Other supplies, services and charges Repairs and maintenance

2,819,170

3,854,977

4,107,728

4,275,541

420,564

11%

167,813

4%

4,962

5,000

5,000

0

(5,000)

(100%)

(5,000)

(100%)

4,331

0

0

0

0

0%

0

0%

318

0

0

0

0

0%

0

0%

2,080,680

2,568,019

2,568,019

2,648,962

80,943

3%

80,943

3%

0

0

0

0

0

0%

0

0%

6,444,202

8,046,556

8,257,846

8,582,255

535,699

7%

324,409

4%

Miscellaneous Interest Interdepartment charges Transfers out Department Totals

FY18 Expenses By Type Interdepartment charges 31%

Personal serv ices 19%

Other supplies, serv ices and charges 50%

City of Lee’s Summit Annual Budget FY18

97 of 207


GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Account Technician

1.00

1.00

1.00

0.00

Accountant

2.00

2.00

2.00

0.00

Accounting Clerk

3.00

3.00

3.00

0.00

Accounts Payable Supervisor

1.00

1.00

1.00

0.00

Administrative Secretary

1.00

1.00

1.00

0.00

Assistant Finance Director

1.00

0.00

0.00

0.00

Cash Management Officer

1.00

1.00

1.00

0.00

Cash Receipts Clerk

2.00

2.00

0.00

-2.00

Controller

0.00

1.00

1.00

0.00

Deputy Director of Finance

0.00

1.00

1.00

0.00

EMS Billing Specialist

1.00

1.00

1.00

0.00

Finance Director

1.00

1.00

1.00

0.00

Financial Analyst

1.00

1.00

1.00

0.00

Payroll Specialist

1.00

1.00

1.00

0.00

Procurement & Contract Svc Mgr

1.00

1.00

1.00

0.00

Procurement Contract Compl Mgr

1.00

0.00

0.00

0.00

Procurement Officer I

1.00

1.00

1.00

0.00

Procurement Officer II

1.00

1.00

1.00

0.00

Senior Procurement Officer

1.00

1.00

1.00

0.00

Treasury Cashier

1.00

1.00

3.00

2.00

22.00

22.00

22.00

0.00

Department Totals

Total Budget 10,000,000

8,000,000

6,000,000 Ex pens es Rev enue

4,000,000

2,000,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

98 of 207


GeneralFund Department Budgets 6: General

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.

City of Lee’s Summit Annual Budget FY18

99 of 207


GeneralFund Department Budgets 6: General

Fire FY18 Budget Summary Expenses by Program and Services Difference FY17 Budget

FY16 Actual

FY17 Budget

Department Administration

820,999

1,203,718

1,304,524

1,315,228

111,510

9%

10,705

1%

1,098,013

1,107,024

1,114,224

1,152,436

45,412

4%

38,212

3%

13,218,651

14,098,023

14,962,658

14,975,438

877,415

6%

12,780

0%

Support Services Emergency Services Fire Prevention Training Department Totals

FY17 Projected

FY18 Budget

Difference FY17 Projected

Programs and Services

$

%

$

%

344,615

55,000

55,000

75,580

20,580

37%

20,580

37%

0

254,600

269,600

239,600

(15,000)

(6%)

(30,000)

(11%)

15,482,278

16,718,365

17,706,005

17,758,282

1,039,917

6%

52,277

0%

Expenses by Type Expense Category

FY17 Budget

FY16 Actual

FY17 Projected

Difference FY17 Budget

FY18 Budget

$ Personal services

%

Difference FY17 Projected $

%

12,891,865

13,494,479

14,402,823

14,789,058

1,294,579

10%

386,235

Supplies for resale

174,224

235,000

235,000

245,000

10,000

4%

10,000

4%

Other supplies, services and charges Repairs and maintenance

495,106

599,406

718,702

708,811

109,405

18%

(9,891)

(1%)

404,172

358,310

358,310

378,681

20,371

6%

20,371

6%

Utilities

117,095

135,500

135,500

135,500

0

0%

0

0%

Fuel and lubricants

93,870

145,000

145,000

145,000

0

0%

0

0%

Miscellaneous

13,784

7,800

7,800

33,300

25,500

327%

25,500

327%

Capital outlay

3%

0

675,000

635,000

0

(675,000)

(100%)

(635,000)

(100%)

Interdepartment charges

957,372

1,020,559

1,020,559

1,265,029

244,470

24%

244,470

24%

Transfers out

334,790

47,311

47,311

57,903

10,592

22%

10,592

22%

15,482,278

16,718,365

17,706,005

17,758,282

1,039,917

6%

52,277

0%

Department Totals

FY18 Expenses By Type Interdepartment charges 7% Miscellaneous 0% Fuel and lubricants 1% Utilities 1% Repairs and maintenance 2% Other supplies, serv ices and charges 4% Supplies f or resale 1%

City of Lee’s Summit Annual Budget FY18

Personal serv ices 83%

100 of 207


GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Assistant Fire Chief I

2.00

3.00

2.00

-1.00

Assistant Fire Chief II

4.00

3.00

0.00

-3.00

Asst. Fire Chief I Paramedic

0.00

0.00

1.00

1.00

Asst. Fire Chief II Paramedic

0.00

0.00

3.00

3.00

Battalion Chief

5.00

5.00

1.00

-4.00

Battalion Chief Paramedic

0.00

0.00

4.00

4.00

Communications Specialist-Fire

8.00

8.00

9.00

1.00

Communications Supvr-Fire

1.00

1.00

1.00

0.00

Fire Captain I

6.00

7.00

2.00

-5.00

Fire Captain I Paramedic

0.00

0.00

6.00

6.00

15.00

15.00

7.00

-8.00

Fire Captain II Paramedic

0.00

0.00

7.00

7.00

Fire Chief

1.00

1.00

1.00

0.00

Fire Dept Management Analyst

1.00

0.00

0.00

0.00

Fire Engineer

5.00

10.00

1.00

-9.00

Fire Captain II

Fire Engineer Paramedic Fire Specialist

0.00

0.00

6.00

6.00

74.00

70.00

42.00

-28.00

0.00

0.00

29.00

29.00

17.00

24.00

6.00

-18.00

Firefighter Paramedic

0.00

0.00

21.00

21.00

Lead Comm Specialist-Fire

4.00

4.00

3.00

-1.00

Management Analyst - Fire

0.00

1.00

1.00

0.00

Office Coordinator

1.00

1.00

1.00

0.00

Department Totals

144.00

153.00

154.00

1.00

Fire Specialist Paramedic Firefighter

Total Budget 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 Ex pens es Rev enue

8,000,000 6,000,000 4,000,000 2,000,000 0 -2,000,000 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

101 of 207


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 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.

City of Lee’s Summit Annual Budget FY18

102 of 207


GeneralFund Department Budgets 6: General

Law FY18 Budget Summary Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

%

Difference FY17 Projected $

%

Department Administration

454,593

370,121

387,326

479,836

109,715

30%

92,510

24%

Safety & Risk Management

131,016

182,579

145,002

185,638

3,059

2%

40,636

28%

Code Enforcement/Prosecut

306,619

354,462

345,563

387,164

32,701

9%

41,601

12%

Support To Development Legal Compliance Department Totals

(4,715)

72,213

99,174

113,159

40,946

57%

13,984

14%

235,181

291,854

289,278

232,474

(59,380)

(20%)

(56,804)

(20%)

1,122,694

1,271,229

1,266,343

1,398,271

127,041

10%

131,928

10%

Expenses by Type Expense Category

FY17 Projected

FY18 Budget

Difference FY17 Budget

Difference FY17 Projected

FY16 Actual

FY17 Budget

Personal services

944,908

1,002,151

991,518

1,026,929

24,778

2%

35,412

4%

Other supplies, services and charges Repairs and maintenance

122,976

193,707

199,454

289,565

95,858

49%

90,111

45%

383

1,010

1,010

1,364

354

35%

354

35%

166

400

400

500

100

25%

100

25%

54,262

73,961

73,961

79,912

5,951

8%

5,951

8%

1,122,694

1,271,229

1,266,343

1,398,271

127,041

10%

131,928

10%

$

Miscellaneous Interdepartment charges Department Totals

%

$

%

FY18 Expenses By Type Interdepartment charges 6% Miscellaneous 0% Repairs and maintenance 0% Other supplies, serv ices and charges 21%

Personal serv ices 73%

City of Lee’s Summit Annual Budget FY18

103 of 207


GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Asst. Prosecuting Attorney PTR

0.50

0.75

0.76

0.01

Chief Counsel of Infr. & Plng.

0.00

0.00

0.50

0.50

Chief Counsel of Mgmt & Ops

1.00

1.00

1.00

0.00

Chief Counsel of Public Safety

0.00

1.00

1.00

0.00

Chief of Litigation

1.00

1.00

0.50

-0.50

Chief Prosecuting Attorney

1.00

1.00

1.00

0.00

City Attorney

1.00

1.00

1.00

0.00

Contract Compliance Coor/Para

1.00

1.00

1.00

0.00

Executive Assistant PTR

0.75

0.80

0.75

-0.05

Legal Assistant

0.00

1.00

1.00

0.00

Office Manager/Paralegal

0.00

1.00

1.00

0.00

Paralegal/Victims Advocate

2.00

0.00

0.00

0.00

Police Legal Advisor

1.00

0.00

0.00

0.00

Staff Attorney

1.00

1.00

1.00

0.00

10.25

10.55

10.51

-0.04

Department Totals

Total Budget 1,400,000 1,200,000 1,000,000 800,000 Ex pens es Rev enue

600,000 400,000 200,000 0 -200,000 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

104 of 207


GeneralFund Department Budgets 6: General 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.

City of Lee’s Summit Annual Budget FY18

105 of 207


GeneralFund Department Budgets 6: General

Planning and Special Projects FY18 Budget Summary Department Totals

(25)

0

0

0

0

0%

0

0%

Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

231,232

239,776

244,888

188,240

(51,536)

(21%)

(56,648)

(23%)

Grant Administration

88,943

75,434

74,434

147,109

71,674

95%

72,674

98%

Long Range Planning

162,884

219,960

188,613

298,900

78,940

36%

110,287

58%

Neighborhood Services

283,353

0

0

0

0

0%

0

0%

Department Totals

766,412

535,170

507,935

634,248

99,078

19%

126,313

25%

Department Administration

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$ Personal services Other supplies, services and charges Repairs and maintenance Fuel and lubricants Miscellaneous Interdepartment charges Department Totals

%

Difference FY17 Projected $

%

641,749

417,819

394,755

434,053

16,234

4%

39,298

10%

62,668

69,905

65,734

195,464

125,559

180%

129,730

197%

15,963

1,634

1,634

2,166

532

33%

532

33%

3,431

0

0

0

0

0%

0

0%

623

0

0

0

0

0%

0

0%

41,978

45,812

45,812

2,565

(43,247)

(94%)

(43,247)

(94%)

766,412

535,170

507,935

634,248

99,078

19%

126,313

25%

FY18 Expenses By Type Interdepartment charges 0% Repairs and maintenance 0% Other supplies, serv ices and charges 31%

Personal serv ices 68%

City of Lee’s Summit Annual Budget FY18

106 of 207


GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Asst Director of Planning Svcs

1.00

1.00

1.00

0.00

Asst. Director of Codes Admin.

1.00

0.00

0.00

0.00

Community Standards Officer

1.00

0.00

0.00

0.00

Director of Planning & NHS

1.00

1.00

1.00

0.00

Neighborhood Services Officer

3.00

0.00

0.00

0.00

Planner

1.00

0.00

1.00

1.00

Planning Intern

0.70

0.01

0.00

-0.01

Senior Planner

1.00

2.00

1.00

-1.00

Department Totals

9.70

4.01

4.00

-0.01

Total Budget 800,000 700,000 600,000 500,000 400,000 Ex pens es Rev enue

300,000 200,000 100,000 0 -100,000 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

107 of 207


GeneralFund Department Budgets 6: General

POLICE DEPARTMENT The Police Department is comprised of three (3) Divisions: Operations, Investigations, and Administration. 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.

City of Lee’s Summit Annual Budget FY18

108 of 207


GeneralFund Department Budgets 6: General

Police FY18 Budget Summary Expenses by Program and Services Difference FY17 Budget

FY16 Actual

Department Administration

4,259,401

4,165,661

4,433,509

4,349,641

183,980

4%

(83,868)

(2%)

Support Services

2,640,548

2,735,388

2,658,512

2,803,831

68,443

3%

145,319

5%

532,547

0

0

0

0

0%

0

0%

Operations Division

7,484,297

8,232,569

8,136,157

8,052,986

(179,583)

(2%)

(83,171)

(1%)

Criminal Investigate Div

3,764,605

3,629,352

3,607,403

3,849,301

219,950

6%

241,899

7%

804,866

866,172

871,172

866,001

(171)

(0%)

(5,171)

(1%)

19,486,265

19,629,141

19,706,753

19,921,760

292,619

1%

215,007

1%

Special Operations

Animal Control Department Totals

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Projected

Programs and Services

$

%

$

%

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

Personal services Other supplies, services and charges Repairs and maintenance

%

Difference FY17 Projected $

%

16,029,395

16,033,312

16,143,565

16,284,646

251,334

2%

141,081

1%

1,447,965

1,514,697

1,498,056

1,569,437

54,740

4%

71,381

5%

657,127

618,567

617,567

618,512

(55)

(0%)

945

0%

Utilities

309,429

350,202

349,702

349,702

(500)

(0%)

(0)

(0%)

Fuel and lubricants

182,736

239,013

219,013

239,013

0

0%

20,000

9%

21,560

24,070

29,570

6,500

(17,570)

(73%)

(23,070)

(78%)

793,067

804,294

804,294

825,159

20,865

3%

20,865

3%

44,986

44,986

44,986

28,791

(16,195)

(36%)

(16,195)

(36%)

19,486,265

19,629,141

19,706,753

19,921,760

292,619

1%

215,007

1%

Miscellaneous Interdepartment charges Transfers out Department Totals

FY18 Expenses By Type Transf ers out 0% Interdepartment charges 4% Miscellaneous 0% Fuel and lubricants 1% Utilities 2% Repairs and maintenance 3% Other supplies, serv ices and charges 8%

City of Lee’s Summit Annual Budget FY18

Personal serv ices 82%

109 of 207


GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Administrative Secretary

1.00

1.00

1.00

0.00

Animal Control Field Supvr.

1.00

1.00

1.00

0.00

Animal Control Manager

1.00

1.00

1.00

0.00

Animal Control Officer

5.00

5.00

5.00

0.00

Communications Specialist-Pol

16.00

14.00

14.00

0.00

Communications Supvr-Police

1.00

1.00

1.00

0.00

Crime Scene Technician

1.00

1.00

0.00

-1.00

Detention Officer

7.50

7.50

9.00

1.50

Evidence & Property Tech.

2.00

1.00

1.00

0.00

Facilities Maintenance Worker

1.00

1.00

1.00

0.00

Lead Comm Specialist-Police

2.00

4.00

4.00

0.00

Lead Detention Officer

3.00

3.00

3.00

0.00

Master Police Officer

73.00

69.00

0.00

-69.00

Master Police Officer I

0.00

0.00

36.00

36.00

Master Police Officer II

0.00

0.00

31.00

31.00

Mgr, Accreditation/Info Mgmt

1.00

1.00

1.00

0.00

Parking Control Officer

1.00

1.00

1.00

0.00

Police Captain

6.00

6.00

6.00

0.00

Police Chief

1.00

1.00

1.00

0.00

Police Major I

1.00

1.00

1.00

0.00

Police Major II

3.00

3.00

3.00

0.00

Police Officer I

20.00

14.00

21.00

7.00

Police Officer II

19.00

29.00

27.00

-2.00

Police Records Clerk

3.50

3.50

3.50

0.00

Police Sergeant

19.00

19.00

0.00

-19.00

Police Sergeant I

0.00

0.00

8.00

8.00

Police Sergeant II

0.00

0.00

11.00

11.00

Police Services Officer

3.00

3.00

3.00

0.00

Police Systems Manager

0.00

1.00

1.00

0.00

Purchasing and Supply Officer

1.00

1.00

1.00

0.00

Receptionist

1.00

0.00

0.00

0.00

Secretary

2.50

3.50

3.50

0.00

Shelter Attendant

4.50

4.50

4.50

0.00

Technical Services Specialist

1.00

1.00

1.00

0.00

202.00

202.00

205.50

3.50

Department Totals

Total Budget 20,000,000

16,000,000

12,000,000

Ex pens es Rev enue

8,000,000

4,000,000

0

-4,000,000 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

110 of 207


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).

City of Lee’s Summit Annual Budget FY18

111 of 207


GeneralFund Department Budgets 6: General

Public Works Engineering FY18 Budget Summary Expenses by Program and Services Difference FY17 Projected

FY16 Actual

Department Administration

1,345,076

1,397,466

1,470,439

1,535,630

138,164

10%

65,191

Stormwater Management

0

0

0

152,213

152,213

0%

152,213

0%

Support To Development

134,560

138,420

127,086

146,025

7,604

5%

18,939

15%

Support to Water Eng & Const Customer Service Support to Solid Waste Mgmt Traffic Engineering

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget

Programs and Services

$

%

$

% 4%

70,101

98,308

97,155

47,984

(50,324)

(51%)

(49,171)

(51%)

169,227

344,597

339,476

298,979

(45,618)

(13%)

(40,497)

(12%)

47,404

30,811

28,714

19,188

(11,623)

(38%)

(9,526)

(33%)

209,094

1,984,968

1,945,180

1,994,548

9,580

0%

49,368

3%

1,259,516

1,286,310

1,302,728

1,359,879

73,569

6%

57,151

4%

Support to Airport

21,657

40,995

38,926

36,756

(4,239)

(10%)

(2,170)

(6%)

Department Totals

3,256,636

5,321,876

5,349,703

5,591,202

269,327

5%

241,499

5%

Infrastructure Improvemts

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY18 Budget

FY17 Projected

Difference FY17 Budget $

Personal services Other supplies, services and charges Repairs and maintenance

%

Difference FY17 Projected $

%

2,916,515

3,487,202

3,546,561

3,691,420

204,218

6%

144,859

4%

118,337

337,651

322,363

305,876

(31,775)

(9%)

(16,487)

(5%) 100%

48,840

89,458

80,801

161,314

71,857

80%

80,513

Utilities

11,001

1,196,773

1,202,535

1,192,600

(4,173)

(0%)

(9,935)

(1%)

Fuel and lubricants

11,236

31,413

19,804

25,115

(6,298)

(20%)

5,311

27%

Miscellaneous

8,768

9,650

7,910

1,650

(8,000)

(83%)

(6,260)

(79%)

Capital outlay

0

0

0

54,902

54,902

0%

54,902

0%

141,939

169,729

169,729

158,325

(11,404)

(7%)

(11,404)

(7%)

3,256,636

5,321,876

5,349,703

5,591,202

269,327

5%

241,499

5%

Interdepartment charges Department Totals

FY18 Expenses By Type Interdepartment charges 3% Capital outlay 1% Miscellaneous 0% Fuel and lubricants 0% Utilities 21% Repairs and maintenance 3% Other supplies, serv ices and charges 5%

City of Lee’s Summit Annual Budget FY18

Personal serv ices 66%

112 of 207


GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Administrative Assistant

1.00

1.00

1.00

0.00

CIP Resident Inspector

5.00

5.00

7.00

2.00

City Traffic Engineer

1.00

1.00

1.00

0.00

Clerk-Typist

1.00

1.00

1.00

0.00

Construction Inspector

2.80

2.10

0.00

-2.10

Construction Manager

1.00

1.00

1.00

0.00

Construction Project Manager

3.00

3.00

3.00

0.00

Deputy Dir. of P.Wks./Admin.

1.00

1.00

1.00

0.00

Deputy Dir. of P.Wks./City Eng

1.00

1.00

1.00

0.00

Director of Public Works

1.00

1.00

1.00

0.00

Engineering Technician

3.00

3.00

2.00

-1.00

Environmental Specialist

0.00

1.00

1.00

0.00

Field Engineering Inspector

0.00

1.00

1.00

0.00

Lead Engineering Technician

0.00

1.00

1.00

0.00

Project Manager

1.00

1.00

1.00

0.00

Public Works Admin. Manager

0.00

0.00

1.00

1.00

Public Works Intern

0.00

0.00

0.25

0.25

Public Works Mgmt. Analyst

1.00

1.00

0.00

-1.00

Right-of-Way Agent

1.00

1.00

1.00

0.00

Senior Engineering Technician

2.00

1.00

2.00

1.00

Senior Signal & Lighting Tech.

0.00

1.00

1.00

0.00

Senior Staff Engineer

6.00

4.00

3.00

-1.00

Service Representative I

1.00

1.00

1.00

0.00

Signal & Lighting Technician

0.00

1.00

1.00

0.00

Signs & Markings Technician

0.00

3.00

3.00

0.00

Staff Engineer

0.00

2.00

4.00

2.00

Streets Operations Supervisor

0.00

1.00

1.00

0.00

Supervisory Engineer

1.00

1.00

1.00

0.00

33.80

41.10

42.25

1.15

Department Totals

Total Budget 6,000,000

5,000,000

4,000,000

Ex pens es Rev enue

3,000,000

2,000,000

1,000,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

113 of 207


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, 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.

City of Lee’s Summit Annual Budget FY18

114 of 207


GeneralFund Department Budgets 6: General

Public Works Operations FY18 Budget Summary Expenses by Program and Services Programs and Services

Department Administration

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

%

Difference FY17 Projected $

%

1,241,532

1,332,563

1,347,385

1,373,547

40,983

3%

26,161

2%

Stormwater Control

521,993

577,289

468,379

466,556

(110,733)

(19%)

(1,823)

(0%)

Street Management

783,508

936,517

855,328

889,735

(46,782)

(5%)

34,407

4%

85,278

98,053

113,601

148,692

50,639

52%

35,091

31%

539,747

844,007

829,311

740,833

(103,174)

(12%)

(88,478)

(11%)

Pot Hole Patching Snow Removal

85,601

93,840

87,113

108,909

15,069

16%

21,797

25%

1,802,472

100,500

81,885

84,008

(16,493)

(16%)

2,123

3%

Right of Way Maintenance

819,700

873,905

1,036,577

930,068

56,163

6%

(106,509)

(10%)

Sidewalk maintenance

172,728

114,033

147,935

124,568

10,535

9%

(23,366)

(16%)

Bridge Maintenance

45,523

48,217

68,911

67,451

19,234

40%

(1,460)

(2%)

Infrastructure Improvemts

(2,648)

0

0

1,995

1,995

0%

1,995

0%

6,095,434

5,018,924

5,036,425

4,936,363

(82,562)

(2%)

(100,063)

(2%)

Street Sweeping Traffic Control

Department Totals

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

%

Difference FY17 Projected $

%

Personal services

2,668,475

2,342,407

2,363,114

2,366,504

24,097

1%

3,391

0%

Other supplies, services and charges Repairs and maintenance

1,307,104

1,531,390

1,597,282

1,415,961

(115,429)

(8%)

(181,320)

(11%)

186,369

198,338

151,875

191,558

(6,780)

(3%)

39,683

26%

Utilities

1,185,763

56,159

56,157

56,964

805

1%

807

1%

70,727

121,801

99,121

111,889

(9,912)

(8%)

12,768

13% (15%)

Fuel and lubricants Miscellaneous Interdepartment charges Department Totals

7,388

2,270

2,318

1,975

(295)

(13%)

(343)

669,608

766,559

766,559

791,511

24,952

3%

24,952

3%

6,095,434

5,018,924

5,036,425

4,936,363

(82,562)

(2%)

(100,063)

(2%)

FY18 Expenses By Type Interdepartment charges 16%

Personal serv ices 48%

Miscellaneous 0% Fuel and lubricants 2% Utilities 1% Repairs and maintenance 4%

Other supplies, serv ices and charges 29%

City of Lee’s Summit Annual Budget FY18

115 of 207


GeneralFund Department Budgets 6: General

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Administrative Assistant

0.00

0.00

1.00

1.00

Administrative Coordinator

1.00

1.00

0.00

-1.00

Asst. Director of P. Wks. Oper

1.00

1.00

1.00

0.00

Clerk-Typist

1.00

1.20

0.80

-0.40

Equipment Operator

15.00

14.00

14.00

0.00

Maintenance Worker

9.00

12.00

12.00

0.00

Public Works Operations Mgr.

1.00

1.00

1.00

0.00

Senior Signal & Lighting Tech.

1.00

0.00

0.00

0.00

Service Attendant

1.00

1.00

1.00

0.00

Signal & Lighting Technician

1.00

0.00

0.00

0.00

Signs & Markings Technician

3.00

0.00

0.00

0.00

Streets Operations Supervisor

4.00

3.00

3.00

0.00

38.00

34.20

33.80

-0.40

Department Totals

Total Budget 7,000,000

6,000,000

5,000,000

4,000,000 Ex pens es Rev enue

3,000,000

2,000,000

1,000,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

116 of 207


SECTION 7: SPECIAL REVENUE FUNDS

117 of 207


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.

City of Lee’s Summit Annual Budget FY18

118 of 207


7: Special Revenue Funds General

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.

City of Lee’s Summit Annual Budget FY18

119 of 207


General 7: Special Revenue Funds

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.

City of Lee’s Summit Annual Budget FY18

120 of 207


General 7: Special Revenue Funds

Parks - Aquatics FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$ Charges for services Material and fuel sales Investment earnings Other Department Totals

Difference FY17 Projected

%

$

600,768

555,247

555,204

545,601

(9,646)

(2%)

(9,603)

% (2%)

96,770

87,748

87,926

106,532

18,784

21%

18,606

21%

2,591

500

1,200

1,200

700

140%

0

0%

75

50

68,593

50

0

0%

(68,543)

(100%)

700,204

643,545

712,923

653,383

9,838

2%

(59,540)

(8%)

Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

%

Difference FY17 Projected $

%

Aquatics Center

584,489

641,685

801,847

638,386

(3,299)

(1%)

(163,461)

(20%)

Department Totals

584,489

641,685

801,847

638,386

(3,299)

(1%)

(163,461)

(20%)

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

%

Difference FY17 Projected $

%

Personal services

280,288

321,879

327,998

349,698

27,819

9%

21,701

7%

Other supplies, services and charges Repairs and maintenance

138,962

139,433

150,642

141,204

1,771

1%

(9,438)

(6%)

61,280

50,313

146,860

34,840

(15,473)

(31%)

(112,020)

(76%)

78,389

70,890

71,221

76,650

5,760

8%

5,429

8%

78

3,155

3,155

250

(2,905)

(92%)

(2,905)

(92%)

Utilities Miscellaneous Capital outlay Interdepartment charges Transfers out Department Totals

0

25,000

70,957

3,500

(21,500)

(86%)

(67,457)

(95%)

19,506

25,029

25,029

26,259

1,229

5%

1,229

5%

5,985

5,985

5,985

5,985

0

0%

0

0%

584,489

641,685

801,847

638,386

(3,299)

(1%)

(163,461)

(20%)

City of Lee’s Summit Annual Budget FY18

121 of 207


General 7: Special Revenue Funds FY18 Expenses By Type Transf ers out 1% Interdepartment charges 4% Capital outlay 1% Miscellaneous 0% Utilities 12% Repairs and maintenance 5% Other supplies, serv ices and charges 22%

Personal serv ices 55%

Net Income FY16 Actual 115,715

FY17 Budget 1,860

FY17 Projected (88,924)

FY18 Budget 14,997

Difference FY17 Budget $

%

13,137

706%

Difference FY17 Projected $ 103,921

% 0%

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY17 Budget

FY18 Budget

Difference FY17

Aquatics Coordinator

0.60

0.60

0.00

-0.60

Aquatics Manager

0.00

0.00

0.60

0.60

Assistant Administrator

0.05

0.05

0.05

0.00

Assistant Facility Manager

0.00

0.00

0.41

0.41

Assistant Swim Team Coach

0.04

0.38

0.04

-0.35

Concession Attendant

1.65

1.56

1.55

-0.01

Deck Attendant

0.77

0.75

0.74

0.00

Facility Maint. Specialist

0.20

0.20

0.20

0.00

Facility Supervisor - Parks

0.38

0.38

0.00

-0.38

Head Lifeguard

0.56

0.54

0.52

-0.02

Lifeguard

6.92

6.30

6.42

0.13

Service Rep - Parks

0.00

1.25

1.24

-0.01

Supt. II, Recreation Services

0.25

0.25

0.25

0.00

Swim Instructor

1.81

1.66

1.95

0.29

Swim Lesson Coordinator

0.12

0.12

0.13

0.01

Swim Team Coach

0.11

0.04

0.12

0.08

Welcome Desk Concessions

1.09

0.00

0.00

0.00

Welcome Desk/Concessions Mgr

0.42

0.40

0.40

0.00

14.96

14.47

14.61

0.14

Department Totals

City of Lee’s Summit Annual Budget FY18

122 of 207


General 7: Special Revenue Funds

Total Budget 900,000 800,000 700,000 600,000 500,000 Ex pens es Rev enue

400,000 300,000 200,000 100,000 0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

123 of 207


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

City of Lee’s Summit Annual Budget FY18

124 of 207


General 7: Special Revenue Funds

Parks - Cemetery FY18 Budget Summary Revenues Difference FY17 Budget

Difference FY17 Projected

Revenues

FY16 Actual

$

%

Charges for services

80,659

93,250

98,591

80,770

(12,480)

(13%)

(17,821)

(18%)

Material and fuel sales

78,111

60,000

60,000

80,000

20,000

33%

20,000

33%

Investment earnings

14,350

7,000

7,000

9,100

2,100

30%

2,100

30%

13

0

(2,000)

0

0

0%

2,000

0%

94,717

100,000

84,500

94,500

(5,500)

(6%)

10,000

12%

267,849

260,250

248,091

264,370

4,120

2%

16,279

7%

Other Sale of property Department Totals

FY17 Budget

FY18 Budget

FY17 Projected

%

$

Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

Cemetery Grounds

223,118

231,034

220,884

225,597

(5,437)

(2%)

4,713

2%

Department Totals

223,118

231,034

220,884

225,597

(5,437)

(2%)

4,713

2%

Expenses by Type Difference FY17 Budget

Difference FY17 Projected

Expense Category

FY16 Actual

$

%

Personal services

56,063

64,759

64,759

58,260

(6,499)

(10%)

(6,499)

(10%)

116,976

109,092

102,607

112,061

2,969

3%

9,454

9%

10,945

14,630

12,490

12,420

(2,210)

(15%)

(70)

(1%)

3,609

4,350

3,625

4,350

0

0%

725

20%

767

1,200

400

1,200

0

0%

800

200%

4

0

0

0

0

0%

0

0%

Interdepartment charges

13,054

15,968

15,968

16,798

830

5%

830

5%

Transfers out

21,700

21,035

21,035

20,508

(527)

(3%)

(527)

(3%)

223,118

231,034

220,884

225,597

(5,437)

(2%)

4,713

2%

Other supplies, services and charges Repairs and maintenance Utilities Fuel and lubricants Construction

Department Totals

FY17 Budget

City of Lee’s Summit Annual Budget FY18

FY18 Budget

FY17 Projected

$

%

125 of 207


General 7: Special Revenue Funds FY18 Expenses By Type Personal serv ices 26%

Transf ers out 9% Interdepartment charges 7% Fuel and lubricants 1% Utilities 2% Repairs and maintenance 6%

Other supplies, serv ices and charges 50%

Net Income FY16 Actual 44,731

FY17 Budget

FY17 Projected

29,216

FY18 Budget 38,773

27,207

Difference FY17 Budget $

%

9,557

33%

Difference FY17 Projected $ 11,566

% 43%

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Maintenance Supervisor - Parks

0.00

0.20

0.30

0.10

Maintenance Supvr. II - Parks

0.30

0.00

0.00

0.00

Senior Park Specialist

0.70

0.00

0.10

0.10

Skilled Park Specialist

0.00

0.70

0.00

-0.70

Supt. of Park Operations

0.00

0.10

0.10

0.00

Supv of Cemetery & Grds Maint

0.00

0.00

0.50

0.50

Department Totals

1.00

1.00

1.00

0.00

Total Budget 280,000

240,000

200,000

160,000 Ex pens es Rev enue

120,000

80,000

40,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

126 of 207


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.

City of Lee’s Summit Annual Budget FY18

127 of 207


General 7: Special Revenue Funds

Parks - Gamber FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$ Charges for services

%

Difference FY17 Projected $

%

354,060

354,909

372,376

358,396

3,487

1%

(13,980)

(4%)

Material and fuel sales

1,017

2,040

751

825

(1,215)

(60%)

74

10%

Investment earnings

4,217

0

1,800

1,800

1,800

0%

0

0%

115

744

332

0

(744)

(100%)

(332)

(100%)

Transfers in

175,000

175,000

175,000

175,000

0

0%

0

0%

Department Totals

534,408

532,693

550,259

536,021

3,328

1%

(14,238)

(3%)

Other

Expenses by Program and Services Programs and Services

Senior Center Activites

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

459,624

474,121

487,749

492,864

18,742

4%

5,115

1%

(16)

0

0

0

0

0%

0

0%

Instructional/Adult

11,065

0

0

0

0

0%

0

0%

Department Totals

470,673

474,121

487,749

492,864

18,742

4%

5,115

1%

Senior Meal Program

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$ Personal services

%

Difference FY17 Projected $

%

260,939

274,566

260,452

270,056

(4,510)

(2%)

9,604

4%

Other supplies, services and charges Repairs and maintenance

85,792

82,071

93,582

104,084

22,012

27%

10,502

11%

24,007

14,900

14,905

32,344

17,444

117%

17,439

117%

Utilities

54,600

50,190

50,214

49,040

(1,150)

(2%)

(1,174)

(2%)

Miscellaneous

21,686

21,039

22,241

3,949

(17,090)

(81%)

(18,292)

(82%)

Capital outlay Interdepartment charges Department Totals

0

0

15,000

0

0

0%

(15,000)

(100%)

23,649

31,355

31,355

33,391

2,036

6%

2,036

6%

470,673

474,121

487,749

492,864

18,742

4%

5,115

1%

City of Lee’s Summit Annual Budget FY18

128 of 207


General 7: Special Revenue Funds FY18 Expenses By Type Interdepartment charges 7% Miscellaneous 1% Utilities 10% Repairs and maintenance 7%

Other supplies, serv ices and charges 21%

Personal serv ices 55%

Net Income FY16 Actual 63,735

FY17 Budget

FY17 Projected

58,572

FY18 Budget

62,510

43,157

Difference FY17 Budget $

%

(15,414)

(26%)

Difference FY17 Projected $ (19,353)

% (31%)

Full Time Equivalents (FTE) Job Titles

FY18 Budget

FY17 Budget

FY16 Budget

Difference FY17

Assistant Administrator

0.10

0.10

0.10

0.00

Custodian - Parks

0.99

1.01

0.58

-0.44

Dance Instructor

0.03

0.06

0.06

0.00

Facility Maint. Specialist

1.00

1.00

1.00

0.00

Facility Supervisor - Parks

0.00

2.89

2.83

-0.05

Fitness Instructor

0.88

0.89

0.88

-0.02

Floor Trainer

0.00

0.00

0.03

0.03

Gamber Center Manager

1.00

1.00

1.00

0.00

Kitchen Assistant

0.01

0.00

0.00

0.00

Personal Trainer - Parks

0.01

0.00

0.00

0.00

Service Rep - Parks

1.99

0.86

0.00

-0.86

Service Representative

0.00

0.00

0.85

0.85

Site Supervisor

1.88

0.00

0.00

0.00

Supt. of Recreation Services

0.05

0.05

0.05

0.00

Department Totals

7.95

7.86

7.38

-0.48

Total Budget 600,000

500,000

400,000

Ex pens es Rev enue

300,000

200,000

100,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

129 of 207


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 Lee’s Summit free of charge. Staff from the Parks Department also serves as a liaison to the Arts Council working with a citizen group to research and provide cultural arts activities for the City. The fund is a special revenue fund and utilizes Generally Accepted Accounting Practice (GAAP) based budgeting. This requires that the modified accrual method is used to record revenues and expenditures. Revenues are recognized when susceptible to accrual (i.e. when they become measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities when due.

City of Lee’s Summit Annual Budget FY18

130 of 207


General 7: Special Revenue Funds

Parks - Harris FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$ Charges for services Material and fuel sales Investment earnings Other Transfers in Department Totals

%

Difference FY17 Projected $

%

1,101,107

1,296,575

1,306,933

1,364,609

68,034

5%

57,676

4%

8,711

24,700

21,523

38,845

14,145

57%

17,322

80%

2,736

0

500

500

500

0%

0

0%

120,351

176,146

211,523

266,960

90,814

52%

55,437

26%

88,970

67,655

64,248

0

(67,655)

(100%)

(64,248)

(100%)

1,321,875

1,565,076

1,604,727

1,670,914

105,838

7%

66,187

4%

Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

Difference FY17 Projected $

%

%

Camp Summit

483,055

538,657

550,794

533,932

(4,725)

(1%)

(16,862)

(3%)

Recreation

295,639

311,782

325,858

371,352

59,570

19%

45,494

14%

16,089

19,944

20,440

24,529

4,586

23%

4,090

20%

Instructional/Youth Instructional/Adult

94,256

137,056

129,652

136,769

(287)

(0%)

7,117

5%

Athletics

140,480

178,104

156,185

144,319

(33,785)

(19%)

(11,866)

(8%)

Special Events

144,145

80,250

69,789

31,307

(48,943)

(61%)

(38,482)

(55%)

Arts Council

73,420

67,626

64,250

(0)

(67,626)

(100%)

(64,250)

(100%)

Bailey Farm Park

32,791

36,215

29,926

36,949

734

2%

7,023

23%

1,154

111,084

148,974

273,655

162,571

146%

124,681

84%

1,281,029

1,480,717

1,495,868

1,552,812

72,096

5%

56,944

4%

Amphitheater Department Totals

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Personal services

672,486

736,845

747,350

767,314

30,469

4%

19,964

3%

Other supplies, services and charges Repairs and maintenance

455,506

550,547

563,964

609,690

59,143

11%

45,726

8%

15,422

18,715

13,098

15,200

(3,515)

(19%)

2,102

16%

Utilities

60,250

73,256

71,845

68,230

(5,026)

(7%)

(3,615)

(5%)

Depreciation

48,742

45,396

45,396

45,396

0

0%

0

0%

Miscellaneous

11,927

16,586

18,227

6,494

(10,092)

(61%)

(11,733)

(64%)

Capital outlay

66,788

14,000

10,000

12,000

(2,000)

(14%)

2,000

20%

Construction

(66,737)

0

0

0

0

0%

0

0%

Interdepartment charges

16,646

21,874

22,490

24,970

3,096

14%

2,480

11%

Transfers out Department Totals

0

3,498

3,498

3,519

21

1%

21

1%

1,281,029

1,480,717

1,495,868

1,552,812

72,096

5%

56,944

4%

City of Lee’s Summit Annual Budget FY18

131 of 207


General 7: Special Revenue Funds FY18 Expenses By Type Personal serv ices 49%

Transf ers out 0% Interdepartment charges 2% Capital outlay 1% Miscellaneous 0% Depreciation 3% Utilities 4% Repairs and maintenance 1% Other supplies, serv ices and charges 39%

Net Income FY16 Actual 40,846

FY17 Budget 84,359

City of Lee’s Summit Annual Budget FY18

FY17 Projected 108,859

FY18 Budget 118,102

Difference FY17 Budget $

%

33,743

40%

Difference FY17 Projected $ 9,243

% 8%

132 of 207


General 7: Special Revenue Funds

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Assistant Administrator

0.65

0.65

0.62

-0.03

Asst. Recreation Supervisor

0.00

1.00

1.00

0.00

Basketball Referee I

0.05

0.00

0.00

0.00

Basketball Referee III

0.00

0.00

0.15

0.15

Basketball Referee IV

0.00

0.13

0.00

-0.13 -0.03

0.78

0.78

0.74

Camp Counselor

13.15

11.44

12.87

1.43

Camp Manager

0.91

0.78

0.74

-0.03

Camp Service Rep

0.62

0.00

0.55

0.55

Camp Support Counselor

0.00

1.35

0.00

-1.35

Community Center Manager II

0.05

0.05

0.00

-0.05

Custodian - Parks

0.46

0.00

0.69

0.69

Event Staff

0.19

0.15

0.39

0.23

Event Staff - Bailey Park

0.00

0.08

0.06

-0.02

Facility Maint. Specialist

0.80

0.80

0.80

0.00

Facility Supervisor - Parks

1.02

1.09

0.00

-1.09

Facility Supvr. - Bailey Park

0.00

0.00

0.04

0.04

Harris Park Community Ctr Mgr

0.00

0.00

1.00

1.00

Instructor-Itty Bitty

0.06

0.03

0.07

0.04

Kickball Official

0.38

0.06

0.15

0.09

Maintenance Supervisor - Parks

0.00

0.00

0.05

0.05

Marketing Coordinator

0.05

0.05

0.00

-0.05

Recreation Intern

0.00

0.23

0.00

-0.23

Recreation Supervisor I

1.00

0.00

1.00

1.00

Recreation Supervisor II

2.00

2.00

0.00

-2.00

School Break Camp Counselor

0.00

0.24

0.39

0.15

Scorekeeper

0.00

0.15

0.37

0.23

Scorekeeper - Basketball

0.12

0.00

0.00

0.00

Service Rep - Bailey Park

0.00

0.00

0.04

0.04

Service Rep - Parks

0.47

1.02

1.21

0.19

Site Supervisor

0.00

0.64

0.69

0.05

Site Supvr. Itty Bitty-Parks

0.12

0.10

0.17

0.07

Soccer Referee I

0.26

0.06

0.00

-0.06

Soccer Referee III

0.00

0.05

0.00

-0.05

Supt. of Recreation Services

0.95

0.95

0.95

0.00

Volleyball Official

0.08

0.42

0.00

-0.42

Volleyball Official II

0.00

0.00

0.29

0.29

Youth Instructor

0.06

0.05

0.02

-0.04

24.23

24.34

25.07

0.72

Camp Assistant Manager

Department Totals

Total Budget 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Ex pens es Rev enue

800,000 600,000 400,000 200,000 0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

133 of 207


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.

City of Lee’s Summit Annual Budget FY18

134 of 207


General 7: Special Revenue Funds

Parks - Legacy FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$ Charges for services Material and fuel sales Investment earnings Other Transfers in Department Totals

Difference FY17 Projected

%

$

1,961,237

1,926,773

1,986,290

1,996,058

69,285

4%

9,768

% 0%

2,499

4,192

3,533

2,787

(1,405)

(34%)

(747)

(21%)

10,463

400

4,000

4,000

3,600

900%

0

0%

1,990

15,024

54,924

15,024

0

0%

(39,900)

(73%)

24,000

27,498

27,498

51,519

24,021

87%

24,021

87%

2,000,189

1,973,887

2,076,245

2,069,387

95,501

5%

(6,858)

(0%)

Expenses by Program and Services Programs and Services

Community Center Activiti Special Events RevUP Revenue Department Totals

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

1,623,471

1,726,877

1,781,172

1,856,987

130,109

8%

75,815

4%

823

0

0

239

239

0%

239

0%

81,659

85,653

109,694

71,267

(14,386)

(17%)

(38,428)

(35%)

(5)

0

0

0

0

0%

0

0%

1,705,948

1,812,530

1,890,867

1,928,493

115,963

6%

37,626

2%

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

Personal services

%

Difference FY17 Projected $

%

1,161,982

1,220,965

1,196,993

1,211,088

(9,877)

(1%)

14,095

1%

Other supplies, services and charges Repairs and maintenance

202,341

229,471

223,029

195,983

(33,488)

(15%)

(27,047)

(12%)

74,804

86,742

128,407

101,747

15,005

17%

(26,660)

(21%)

Utilities

182,412

187,382

182,596

183,772

(3,610)

(2%)

1,176

1%

Miscellaneous

1,545

6,509

6,260

6,509

0

0%

249

4%

Capital outlay

39,686

24,000

96,120

168,098

144,098

600%

71,978

75%

Interdepartment charges Department Totals

43,178

57,462

57,462

61,296

3,834

7%

3,834

7%

1,705,948

1,812,530

1,890,867

1,928,493

115,963

6%

37,626

2%

City of Lee’s Summit Annual Budget FY18

135 of 207


General 7: Special Revenue Funds FY18 Expenses By Type Interdepartment charges 3% Capital outlay 9% Miscellaneous 0% Utilities 10% Repairs and maintenance 5%

Other supplies, serv ices and charges 10%

Personal serv ices 63%

Net Income FY16 Actual 294,242

FY17 Budget 161,356

City of Lee’s Summit Annual Budget FY18

FY17 Projected 185,378

FY18 Budget 140,895

Difference FY17 Budget $

%

(20,462)

(13%)

Difference FY17 Projected $ (44,483)

% (24%)

136 of 207


General 7: Special Revenue Funds

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Aquatics Coordinator

0.40

0.40

0.00

-0.40

Aquatics Manager

0.00

0.00

0.40

0.40

Assistant Administrator

0.20

0.20

0.23

0.03

Child Care Attendant

3.17

2.92

3.36

0.44

Community Center Manager II

0.95

0.95

1.00

0.05

Custodian

1.00

0.00

0.00

0.00

Custodian - Parks

2.58

2.33

3.06

0.73

Facility Maint. Specialist

0.00

1.00

1.00

0.00

Facility Supervisor - Parks

0.13

2.03

1.95

-0.08

Fitness Instructor

3.05

3.02

2.41

-0.61

Fitness Specialist

0.69

0.00

0.00

0.00

Floor Trainer

0.25

0.06

0.05

0.00

Gym/Weight Room Attendant

3.00

3.18

3.08

-0.10

Head Lifeguard

1.60

1.94

1.94

0.00

Lifeguard

6.25

5.96

5.72

-0.24

LPCC Assistant Manager

1.00

1.00

1.00

0.00

Maintenance Supervisor - Parks

1.00

1.00

0.95

-0.05

Personal Trainer - Parks

0.51

0.56

0.67

0.11

Private Swim Instructor

0.00

0.14

0.14

0.00

Recreation Supervisor I

0.00

2.00

2.00

0.00

Recreation Supervisor II

1.00

0.00

0.00

0.00

RevUp Exercise Specialist

0.55

0.38

0.34

-0.04

Service Rep - Parks

4.41

4.42

4.37

-0.05

Service Representative I

2.00

2.00

2.00

0.00

Site Supervisor

1.92

0.00

0.00

0.00

Supt. II, Recreation Services

0.75

0.75

0.75

0.00

Swim Instructor

0.85

0.69

0.69

0.00

Swim Lesson Coordinator

0.06

0.06

0.06

0.00

37.32

36.99

37.18

0.19

Department Totals

Total Budget 2,400,000

2,000,000

1,600,000

Ex pens es Rev enue

1,200,000

800,000

400,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

137 of 207


General 7: Special Revenue Funds 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.

City of Lee’s Summit Annual Budget FY18

138 of 207


General 7: Special Revenue Funds

Parks and Recreation FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

3,135,194

3,189,191

3,189,191

3,213,619

24,428

1%

24,428

Fines and forfeitures

17,782

20,250

20,170

20,170

(80)

(0%)

0

0%

Charges for services

14,637

2,500

2,615

5,080

2,580

103%

2,465

94%

Taxes

Investment earnings Other Transfers in Department Totals

1%

26,779

5,000

5,000

5,000

0

0%

0

0%

164,590

152,994

165,137

128,496

(24,498)

(16%)

(36,641)

(22%)

87,229

83,102

79,959

83,599

497

1%

3,640

5%

3,446,211

3,453,037

3,462,072

3,455,964

2,927

0%

(6,108)

(0%)

Expenses by Program and Services Programs and Services

Department Administration Debt & Cash Management Park Services Grounds Maintenance Legacy Park Beautification Commission Department Totals

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

878,158

919,785

951,175

922,166

2,381

0%

(29,008)

(3%)

8,129

0

0

0

0

0%

0

0%

1,523,005

1,641,494

1,586,663

1,622,883

(18,610)

(1%)

36,221

2%

4,416

(45)

13,087

(5,929)

(5,884)

0%

(19,016)

(145%)

662,673

654,872

610,321

716,491

61,619

9%

106,170

17%

44,544

56,064

52,939

57,106

1,042

2%

4,167

8%

3,120,924

3,272,170

3,214,184

3,312,717

40,548

1%

98,533

3%

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$ Personal services Other supplies, services and charges Repairs and maintenance

%

Difference FY17 Projected $

%

1,786,839

1,794,952

1,790,279

1,811,880

16,928

1%

21,602

1%

837,256

854,455

879,944

892,903

38,447

4%

12,959

1%

309,201

347,026

296,044

353,566

6,541

2%

57,523

19%

Utilities

73,465

95,750

80,145

96,985

1,235

1%

16,840

21%

Fuel and lubricants

27,870

35,327

30,541

33,777

(1,550)

(4%)

3,236

11%

Miscellaneous

12,240

0

3,572

3,000

3,000

0%

(572)

(16%)

Capital outlay

0

79,550

68,550

63,027

(16,523)

(21%)

(5,523)

(8%)

Construction

(122,360)

(122,353)

(122,353)

(130,852)

(8,499)

0%

(8,499)

0%

Interdepartment charges

146,198

174,281

174,281

188,431

14,150

8%

14,150

8%

50,216

13,182

13,182

0

(13,182)

(100%)

(13,182)

(100%)

3,120,924

3,272,170

3,214,184

3,312,717

40,548

1%

98,533

3%

Transfers out Department Totals

City of Lee’s Summit Annual Budget FY18

139 of 207


General 7: Special Revenue Funds FY18 Expenses By Type Interdepartment charges 5% Capital outlay 2% Miscellaneous 0% Fuel and lubricants 1% Utilities 3% Repairs and maintenance 10% Other supplies, serv ices and charges 26%

Personal serv ices 53%

Net Income FY16 Actual 325,287

FY17 Budget 180,867

City of Lee’s Summit Annual Budget FY18

FY17 Projected 247,887

FY18 Budget 143,247

Difference FY17 Budget $

%

(37,621)

(21%)

Difference FY17 Projected $ (104,641)

% (42%)

140 of 207


General 7: Special Revenue Funds

Full Time Equivalents (FTE) Job Titles

FY16 Budget

Accountant

0.00

0.00

1.00

Administrative Services Asst.

1.00

1.00

2.00

1.00

Administrative Services Coord.

1.00

1.00

0.00

-1.00

Administrator of Parks & Rec

1.00

1.00

1.00

0.00

Asst. Supt. of Park Constr.

0.00

1.00

1.00

0.00

Asst. Supt., Planning & Dev.

1.00

0.00

0.00

0.00

Legacy Park Supervisor

0.00

1.00

0.00

-1.00

Legacy Park Supervisor II

1.00

0.00

0.00

0.00

Maintenance Supervisor - Parks

0.00

0.80

0.70

-0.10

Maintenance Supvr. II - Parks

1.70

0.00

1.00

1.00

Maintenance Worker - Parks

1.85

1.02

1.02

0.00

Marketing Coordinator

0.95

0.95

1.00

0.05

Master Park Specialist

6.00

6.00

6.00

0.00

Park Specialist

0.00

1.00

1.00

0.00

Recreation Intern

0.12

0.06

0.08

0.02

Senior Park Specialist

1.30

1.00

3.90

2.90

Service Rep - Parks

1.00

1.00

0.00

-1.00

Service Representative

0.14

0.00

0.00

0.00

Site Supervisor

0.00

1.21

1.21

0.00

Skilled Park Specialist

5.00

4.30

1.00

-3.30

Strategic Comm. & Admin. Mgr.

1.00

1.00

1.00

0.00

Superintendent II, Admin.

1.00

1.00

1.00

0.00

Supt. of Park Operations

1.00

0.90

0.90

0.00

Supt. Park Planning & Dev.

0.00

1.00

1.00

0.00

Supv of Cemetery & Grds Maint

0.00

0.00

0.50

0.50

26.06

26.23

26.30

0.07

Department Totals

FY18 Budget

FY17 Budget

Difference FY17 1.00

Total Budget 3,500,000

3,000,000

2,500,000

2,000,000 Ex pens es Rev enue

1,500,000

1,000,000

500,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

141 of 207


SECTION 7B: OTHER SPECIAL REVENUE FUNDS

142 of 207


7: Special Revenue Funds

BUSINESS AND INDUSTRY FUND YEAR BEGINNING JULY 1, 2018

FY 2012 ACTUAL REVENUES: Business & Industry Tax (Hotel) Penalty/Interest Transfers Contributions Interest

$

Total Revenues EXPENDITURES: Administrative Fees Payment Discount Interest Expense Transfer 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 2013 ACTUAL

FY 2014 ACTUAL

297,045 $ 91 62,220

310,884 $ 0 62,220

273

246

$

359,629 $

373,350 $

404,929 $

$

6,293 $ 6,221 0

6,267 $ 6,194 0

6,297 $ 6,792 0

$

Excess of Revenues Over (Under) Expenditures

FY 2015 ACTUAL

342,603 $ 60 62,200 66

FY 2016 ACTUALS

401,460 $ 6,545 14,200

FY 2017 BUDGET

FY 2017 ACTUAL YTD

FY 2018 BUDGET

440,886 $ 2,255 14,200

376,473 $ 0 0

404,726 $ 124 0

1,621

1,000

(289)

422,267 $

458,962 $

377,473 $

404,561 $

395,333

6,297 $ 7,450 391

8,818 $ 8,370 0

6,297 $ 6,204 0

6,297 $ 6,204 0

6,297 6,204 0

62

394,372 1,000 0 (39)

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 0 250,911 51,043

60,000 0 250,911 51,043

60,000 0 275,500 51,043

374,125 $

374,072 $

374,700 $

343,149 $

346,199 $

374,455 $

374,455 $

399,044

(14,496)

(722)

30,229

79,118

112,763

3,018

30,106

(3,711)

Fund Balance, Beginning of Year

$

61,893 $

47,397 $

46,675 $

76,904 $

156,022 $

268,785 $

271,803 $

271,803

Fund Balance

$

47,397 $

46,675 $

76,904 $

156,022 $

268,785 $

271,803 $

301,909 $

268,092

12.7%

12.5%

20.5%

45.5%

77.6%

72.6%

80.6%

% of Total Expenditures to Ending Fund Balance

67.2%

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 5 hotel/motels in the City have a total of 352 rooms with an average occupancy rate of 65.5% for fiscal years 2015, 2016, and 2017YTD. Average Occupancy Rate:  FY13 - 54.7%  FY14 - 57.8%  FY15 - 61.5%  FY16 - 68.3%  FY17 - 66.5% (YTD) Revenues: FY18 hotel/motel tax estimate is a 3-year average of FY2014-2016. Revenue projections are based on the fundamentals of fund sources as seasonality and large onetime 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. That transfer was discontinued in FY17. Expenditures: FY18 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. The FY18 Request includes funding for additional services to be provided by the LS Economic Development Council in an effort to enhance economic development opportunities. The fund balance at year end is projected to be 67.2% of total expenditures.

REVENUES, EXPENDITURES & FUND BALANCE $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ACTUAL FY 2012

ACTUAL FY 2013

ACTUAL FY 2014

REVENUES:

City of Lee’s Summit Annual Budget FY17

ACTUAL FY 2015

EXPENDITURES:

ACTUALS FY 2016

BUDGET FY 2017

ACTUAL YTD FY 2017

BUDGET FY 2018

Fund Balance

143 of 207


7: Special Revenue Funds

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ENTITLEMENT FUND YEAR BEGINNING JULY 1, 2017

FY 2013 ACTUAL REVENUES: Intergovernmental revenues: Contributions- Federal Other Total Revenues EXPENDITURES: Contributions expense Interest on Bonds Transfers Out Total Expenditures

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 ACTUAL

FY 2017 BUDGET

FY 2017 PROJ

FY 2018 BUDGET

$

332,952 $

238,227 $

250,653 $

474,295 $

250,653 $

250,653 $

369,299

$

332,952 $

238,227 $

250,653 $

474,295 $

250,653 $

250,653 $

369,299

$

205,357 $ 0

216,488 0

249,003 0

471,695 0

369,229 0

369,229 0

365,011 30,000

$

205,357 $

216,488 $

249,003 $

471,695 $

369,229 $

369,229 $

395,011

1,650

2,600

Excess of Revenues Over (Under) Expenditures

127,595

21,739

(118,576)

(118,576)

(25,712)

Fund Balance, Beginning of Year

$

(160,103) $

(32,508) $

(10,769) $

(9,119) $

(6,519) $

(6,519) $

(125,095)

Fund Balance

$

(32,508) $

(10,769) $

(9,119) $

(6,519) $

(125,095) $

(125,095) $

(150,807)

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: EXPENDITURES:

$600,000

Fund Balance

$500,000 $400,000 $300,000 $200,000 $100,000 $$(100,000) $(200,000) ACTUAL FY 2013

ACTUAL FY 2014

City of Lee’s Summit Annual Budget FY17

ACTUAL FY 2015

ACTUAL FY 2016

BUDGET FY 2017

PROJ FY 2017

BUDGET FY 2018

144 of 207


7: Special Revenue Funds

VIOLENCE AGAINST WOMEN GRANT FUND YEAR BEGINNING JULY 1, 2017 FY 2014 ACTUAL

FY 2015 ACTUAL

FY2016 ACTUAL

FY 2017 BUDGET

FY 2017 PROJECTED

FY 2018 BUDGET

REVENUES: Federal Contribution Interest

$

138,389 $ (22)

106,684 $ 1,450

304,334 $

106,684

106,684

212,001

Total Revenues

$

138,367 $

108,134 $

304,334 $

106,684 $

106,684 $

212,001

$

48,106 $

50,005 $

21,104 $

57,000

57,000

212,000

$

48,106 $

50,005 $

21,104 $

57,000 $

57,000 $

212,000

90,261

58,129

49,684

49,684

1

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

283,230

Fund Balances, Beginning of Year

$

193,827 $

284,088 $

342,217 $

494,384

625,447

675,131

Fund Balances, End of Year

$

284,088 $

342,217 $

625,447 $

544,068 $

675,131 $

675,132

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 $800,000

REVENUES: EXPENDITURES: FUND BALANCE

$700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ACTUAL FY 2014

ACTUAL FY 2015

City of Lee’s Summit Annual Budget FY17

ACTUAL FY2016

BUDGET FY 2017 FISCAL YEAR

PROJECTED FY 2017

BUDGET FY 2018

145 of 207


SECTION 8: CAPITAL PROJECT FUNDS

146 of 207


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.

City of Lee’s Summit Annual Budget FY18

147 of 207


8: Capital Project Funds General

CAPITAL IMPROVEMENT PROCESS DEFINITION A capital improvement is a necessary or desirable project that extends or improves infrastructure and enhances the City’s ability to provide safe and desirable services for the benefit of the community and the quality of life in Lee’s Summit. These projects directly affect the way citizens live, travel and conduct business within the community. IDENTIFICATION The need for capital improvements may be identified by an adopted infrastructure master plan, the desire to maintain certain levels and types of service provided in the community, by community groups, or by regulatory legislation. Projects are prioritized based on many factors including their impact on providing better city services, accommodating city growth, effect on maintenance and operation expenditures, and the overall health, safety and welfare of the citizens. CREATION The scope of a proposed project is often determined based on a preliminary study or recommendations from other city master plans. Once the project is identified a preliminary cost estimate and schedule for the design, right of way and easement acquisition, and construction of the project is prepared. These initial cost estimates are typically general in nature with considerable contingencies included. If the project is selected for inclusion in the CIP, the estimates and schedule are the basis of the initial project information. CAPITAL IMPROVEMENTS PLAN IMPLEMENTATION When a project on the CIP schedule is funded, it is assigned to a project manager who will assume oversight responsibilities. A number of steps are required before a project is complete. DESIGN The project manager will coordinate and participate in the selection process for an engineering or architectural design firm, as appropriate. Architectural and engineering services contracts, unlike commodities contracts, are awarded to firms strictly on the qualifications and expertise of the firm in the particular type of project. The project manager is responsible for negotiating a 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 City of Lee’s Summit Annual Budget FY18

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8: Capital Project Funds General

accordingly during the next annual update. Occasionally, projects may be deferred or deleted from the plan based on information gathered during the design process that indicates significant problems with pursuing the project. Typically, one or more public meetings are held for major projects that have significant impacts on property owners and the public to obtain feedback and comments from the community. A meeting is often held at the completion of preliminary plans in order to let residents abutting the project know how the design will affect their properties. Comments made at the meetings are considered by City staff and the design firm for inclusion in revised plans, if appropriate, prior to appraisals and property acquisition. Other meetings may be held before any design is started and just before construction begins. Right-of-way plans define the nature and extent of property required to complete a project. Property acquisition may be in the form of right-of-way, permanent easements or temporary construction easements. The City hires professional appraisers to determine fair market value of the acquisitions, which is the basis for initial offers to property owners. The City’s right-of-way agent and/or contract agents complete the negotiation and acquisition process for the projects. Once all property is acquired, final plans and specifications can be completed. During this time, any necessary relocation of private utilities (gas, phone, power) is also accomplished. Typically, all relocations are complete prior to bidding a capital project. ADVERTISEMENT, BID AND AWARD Capital projects are publicly advertised through the City’s Purchasing Division. City and consultant staff members evaluate all bids for completeness and correctness, and references for the low bidder are checked. Based on the review and references, the consultant or the City’s project manager makes a recommendation for award to the lowest and best bidder. The award of the construction contract is made by City Council. SCHEDULE The construction contract sets forth the required completion time for the project. Time is counted from the date of the “Notice to Proceed” to the point of substantial completion and final completion. The duration is determined by the design consultant and/or City staff based on the 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 City of Lee’s Summit Annual Budget FY18

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

CAPITAL IMPROVEMENT PLAN FUNDING Revenue Sources 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:

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8: Capital Project Funds General • • • •

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

Sales Tax- The City imposes a total sales tax of 2.25% (Capital Improvement: 0.50%, General fund: 1.0%, Parks and Recreation: 0.25%, Transportation: 0.50%) on all goods and commodities sold within the City limits with the exception of drugs and farm machinery. The tax is also levied on all vehicles registered by residents of the City, regardless of where those vehicles were purchased. Transportation tax is not levied on utilities and is earmarked specifically for use in funding transportation projects only. The State of Missouri receives the tax from the respective business and distributes the funds monthly to the City. Parks & Recreation 1/4-Cent Sales Tax- Initially approved in November 1997 for 3/8-cent and renewed in February 2006 for ¼-cent, this revenue source is dedicated to Parks and Recreation improvements including completion of Legacy Park facilities, new park development, the Senior Center, and greenway development. Transportation ½-Cent Sales Tax- Approved initially in the 1980s, this tax is available to pay for transportation and traffic infrastructure improvements and major maintenance, such as overlay and slurry seal, curb and gutter replacement, crack sealing and pavement marking. 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.

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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. 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.

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Sewer Tap- The charge for a new sanitary sewer connection based on the number of drains in a structure and assessed at the time of building permit issuance. Water Taps- The charge for a new water service connection based on the size of water meter required. Also included in the water tap fee is an amount which is intended to provide capital for the development of the City’s water transmission capacity. PRIVATE FUNDING Amounts paid by developers, generally for specific infrastructure improvements, pursuant to development agreements between the City and those developers.

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CAPITAL IMPROVEMENT PLAN COSTS

The 2018-2022 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 $331,195,000. 2018-2022 CIP SUMMARY (Costs in $1000s) Project Prior Years Public Works Programs 6,338 Water Utilities Programs 364 Airport 18,562 Bridges, Streets, and Signals 74,543 Facilities 1,260 Parks and Recreation 3,600 Solid Waste 1,924 Storm Water 15,800 Sanitary Sewer 8,664 Water 21,350 Total 152,405

City of Lee’s Summit Annual Budget FY18

2018 6,262 2,228 8,921 20,642 13,000 2,100 1,269

2019 6,447 1,747 4,805 6,936

2020 6,633 455 3,966 1,000

2021 6,573 670 4,019

2022 6,786 1,029 2,668

1,060 695

9,675 549

6,570

9,250

4,611 6,516 65,549

2,425 3,818 27,933

6,000 4,881 33,159

1,350 3,000 22,182

5,434 5,000 30,167

Total 39,039 6,493 42,941 103,121 14,260 32,255 4,437 15,800 28,484 44,365 331,195

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General 8: Capital Project Funds

Project Number F315 Sewer Tap Fund

Previous Funding Balance

FY18 Funding

New Project Budget

Lifetime Budget (CIP)

196

CC Intrcptr-WW & SH

511,450

1,035,000

1,546,450

1,600,000

285

Boggs Hollow Meter Structure

300,000

0

300,000

300,000

428

Tudor Force Main-Odor Control

500,000

0

500,000

500,000

2,315,526

1,035,000

3,350,526

2,400,000

2,676,696

4,813,000

7,489,696

10,414,000

300,000

115,000

415,000

415,000

1,985,761

0

1,985,761

2,000,000

807,904

400,000

1,207,904

2,000,000

8,983,966

7,634,000

16,617,966

16,991,000

8,112,161

12,962,000

21,074,161

31,820,000

-2,449,399

650,000

-1,799,399

2,050,000

F316 Water Construction 73

Chipman-Bent Tree/View Hi

155

SCADA Radio Communications

203

Wtr Main Rehab FY17

205

Water Meter Replacement

315

US 50 Hwy/Rte 291 South Intrch

F317 Sewer Construction Fund 144

Operation Facility-Site Acquis

160

CC Wtrshd-CC16,CC20 Priv I/I R

584,000

0

584,000

584,000

191

Sanitary Sewer Rehab-Relinin/M

4,564,223

1,045,000

5,609,223

10,210,000

339

Wastewater Flow Monitoring

-65,057

0

-65,057

0

340

Small Main Rplmt Program

928,913

0

928,913

2,000,000

1,629,674

1,695,000

3,324,674

14,844,000

F318 WU Equipment Replacement 431

Hook Tower Recoating

409,000

0

409,000

409,000

432

Ranson Tower Recoating

324,000

0

324,000

324,000

182,468

0

182,468

733,000

-3,212,816

0

-3,212,816

0

-420,321

0

-420,321

0

-3,633,136

0

-3,633,136

0

F319 ERP System 16

ERP Project

64

Utility ERP System

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General 8: Capital Project Funds

Project Number F321 Airport Construction 29

Land Acq ALP Prop Phase 2

Previous Funding Balance

FY18 Funding

Lifetime Budget (CIP)

New Project Budget

11,293,501

0

11,293,501

5,500,000

169

Const Pavement Runwy 18-36

6,195,341

0

6,195,341

11,085,000

170

Const Pavement Taxiway Ext

1,425,000

5,251,000

6,676,000

6,676,000

174

Ext N Parallel Taxiwy

-94,492

549,000

454,508

701,000

327

FAA Review/Testing NavAid Relo

528,262

0

528,262

0

442

Update Arpt Master&Business Pl

400,000

0

400,000

800,000

22,027,217

5,800,000

27,827,217

24,762,000

Jefferson-Persels/Stuart

2,491,451

0

2,491,451

9,714,000

185

Ward Rd-150 to Raintree Pkwy

6,490,087

145,000

6,635,087

9,020,000

415

Commerce Drive-Tudor to Main

371,006

906,000

1,277,006

1,316,000

416

5th St-Country Ln to Greenridg

255,096

645,000

900,096

985,000

417

Gateway Dr-Delta Sch/Georgian

286,974

560,000

846,974

910,000

418

Hook Rd Shoulders-WCL/Ward Rd

497,097

850,000

1,347,097

1,350,000

419

Jefferson-Persels/Oldham Pkwy

438,591

1,639,000

2,077,591

3,379,000

420

Langsford Road Bridge Rehab

498,200

600,000

1,098,200

1,100,000

421

Scherer Rd/Heartwood Dr Inters

499,928

825,000

1,324,928

1,750,000

422

3rd St Impr/Signal-Murry/Pryor

197,434

1,450,000

1,647,434

5,100,000

423

TGeo Pkwy Shldrs-Colb/Wds Ch

1,190,962

0

1,190,962

1,260,000

-3,279,240

7,620,000

4,340,760

35,884,000

F322 Capital Imprvmt Sales Tax 27

F324 Road & Bridge Improvement 6

Blackwell Rd Interchange

24,965,377

0

24,965,377

24,968,000

26

Indep/Town Ctr Intersectn

578,657

0

578,657

1,760,000

60

Traffic Sgnl Comm Mstr Pl

191,628

0

191,628

295,000

135

Main Street Bridge over 2nd St

101,939

185,000

286,939

305,000

329

Chipman Bridge Rehab over UPRR

167,610

0

167,610

180,000

26,005,211

185,000

83,088

27,508,000

-28

0

-28

4,025,000

150,834

0

150,834

475,000

2,573,338

2,100,000

4,673,338

5,000,000

F327 Park Development Fund 330

Bailey Farm Pk/Nature Ctr Dev

331

Practice Field Improvements

335

North Lea McKeighan Park Impro

337

Hartman Park Improvements

169,358

0

169,358

185,000

338

Summit Park Renovation

-20,765

0

-20,765

600,000

465

Hartman-S Trailhead Planning

15,000

0

15,000

15,000

466

Howard Park Splash Pad

200,000

0

200,000

200,000

2,390,428

2,100,000

4,490,428

10,500,000

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General 8: Capital Project Funds

Project Number F338 Storm Water Improvements 54

Stormwater Phase I

Previous Funding Balance

FY18 Funding

New Project Budget

Lifetime Budget (CIP)

2,914,600

0

2,914,600

15,800,000

2,914,600

0

2,914,600

15,800,000

366,305

0

366,305

13,199,000

366,305

0

366,305

13,199,000

-1,682,888

0

-1,682,888

0

503,875

0

503,875

1,260,000

-1,179,013

0

-1,179,013

1,260,000

F343 Tudor Rd Improvemnts 2010 63

Tudor Road 2010

F346 Cultural Arts 2013 258

Legacy Pk Amphitheater Improvm

259

Cultural Arts Downtown Campus

F352 Public Safety Bonds 2016 462

Emgncy Svcs Radio Equip-PS16

-10,733

8,000,000

7,989,267

8,000,000

463

Fire Station 3 Replacemnt-PS16

-6,165

5,000,000

4,993,835

5,000,000

-16,897

13,000,000

12,304,917

13,000,000

503,311

576,000

1,079,311

1,152,000

1,348,000

693,000

2,041,000

3,285,000

1,851,311

1,269,000

3,120,311

4,437,000

F520 Solid Waste Management 401

Transfer Station

402

Landfill Closure

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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 2018-2022 CIP totals $331,195,000 (including funding from prior years), up from $303,968,000 in the 2017-2021 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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General 8: Capital Project Funds

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General 8: Capital Project Funds

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General 8: Capital Project Funds

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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 Worker’s Compensation Self Insurance Fund were established to account for the City provided employee benefits. New in Fiscal Year 2007-2008 is the Central Building Services Fund. This fund will provide funding for capital maintenance projects. The City utilizes Generally Accepted Accounting Practice (GAAP) based budgeting for these funds. This requires that the full accrual method be used to record revenues and expenditures. This presentation records long-term assets and liabilities, and recognizes revenues and expenses when transactions occur.

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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 department’s project team from concept through completion. The Building Maintenance Services staff includes 25% of the City Architects time as well as 2.25 FTEs. One staff member is a heating, ventilation and air conditioning (HVAC) technician. The services provided include routine maintenance, scheduled and unscheduled maintenance, repairs and general upkeep of facilities throughout the City. Specifically, they are responsible for maintaining City Hall, City Hall Parking Garage, all City fire stations, Animal Control, Public Works Maintenance Facility, Arnold Hall, Amtrak Station and downtown restrooms. Most maintenance related on-call contracts are administered as part of the services provided and includes elevator inspections, fire alarm inspections, window washing and carpet cleaning. Duty hours are from 6:30 AM to 3:30 PM, Monday through Friday. The Custodial Services staff includes 4.0 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. 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 Memorandum 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

Central Building Services FY18 Budget Summary Revenues Difference FY17 Budget

Difference FY17 Projected

Revenues

FY16 Actual

Investment earnings

13,805

0

0

0

0

0%

0

0%

766

0

7,450

25,000

25,000

0%

17,550

236%

1,141,172

1,485,685

1,485,685

1,588,443

102,758

7%

102,758

7%

4,250

0

0

0

0

0%

0

0%

1,159,993

1,485,685

1,493,135

1,613,443

127,758

9%

120,308

8%

FY17 Budget

FY18 Budget

FY17 Projected

$ Other Interdepartment revenues Transfers in Department Totals

%

$

%

Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

Facility Services

350,388

419,969

429,469

465,623

45,653

11%

36,153

8%

Custodial Services

344,474

402,527

251,843

352,247

(50,280)

(12%)

100,404

40%

90,094

100,547

100,547

107,944

7,397

7%

7,397

7%

Utilities/General Servcs

235,749

389,016

377,016

443,449

54,433

14%

66,433

18%

BERP program

116,623

263,000

263,000

368,000

105,000

40%

105,000

40%

0

93,000

93,000

0

(93,000)

(100%)

(93,000)

(100%)

1,137,327

1,668,059

1,514,876

1,737,262

69,204

4%

222,387

15%

Project Management

Capital Project Activity Department Totals

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$ Personal services Other supplies, services and charges Repairs and maintenance Utilities Fuel and lubricants

%

Difference FY17 Projected $

%

670,478

727,987

578,604

631,498

(96,489)

(13%)

52,894

9%

24,858

47,823

48,023

167,744

119,921

251%

119,721

249%

75,244

129,000

134,000

140,000

11,000

9%

6,000

4%

221,134

245,825

237,325

281,849

36,024

15%

44,524

19%

1,963

3,500

3,000

0

(3,500)

(100%)

(3,000)

(100%)

100,057

94,541

94,541

101,424

6,883

7%

6,883

7%

Miscellaneous

0

0

0

3,000

3,000

0%

3,000

0%

Capital outlay

116,623

356,000

356,000

368,000

12,000

3%

12,000

3%

Construction

(109,104)

0

0

0

0

0%

0

0%

36,075

63,383

63,383

43,748

(19,636)

(31%)

(19,636)

(31%)

1,137,327

1,668,059

1,514,876

1,737,262

69,204

4%

222,387

15%

Depreciation

Interdepartment charges Department Totals

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9: Proprietary Funds FY18 Expenses By Type Personal serv ices 36%

Interdepartment charges 3% Capital outlay 21% Miscellaneous 0%

Depreciation 6% Other supplies, serv ices and charges 10%

Utilities 16% Repairs and maintenance 8%

Net Income FY16 Actual

FY17 Budget

22,666

(182,374)

FY18 Budget

FY17 Projected

Difference FY17 Budget $

(21,741)

(123,819)

Difference FY17 Projected

%

58,554

0%

$ (102,079)

% 0%

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Asst. City Mgr, Internal Svcs.

0.12

0.00

0.00

0.00

Asst. City Mgr., Operations

0.12

0.12

0.12

0.00

Central Building Services Supv

1.00

1.00

1.00

0.00

City Architect

1.00

1.00

1.00

0.00

Custodian

6.00

7.00

4.00

-3.00

Facilities Maintenance Worker

1.50

1.50

2.50

1.00

Lead Custodian

1.00

0.00

0.00

0.00

10.74

10.62

8.62

-2.00

Department Totals

Total Budget 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Ex pens es Rev enue

800,000 600,000 400,000 200,000 0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

167 of 207


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.

City of Lee’s Summit Annual Budget FY18

168 of 207


9: Proprietary Funds

Central Vehicle Maintenance FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Charges for services

12

0

0

0

0

0%

0

0%

Investment earnings

18,801

10,000

10,000

10,000

0

0%

0

0%

Other

1,046

850

1,760

1,640

790

93%

(120)

(7%)

(259,296)

643,321

414,795

670,027

26,706

4%

255,232

62%

Interdepartment revenues

2,556,468

2,386,603

2,386,603

1,658,950

(727,653)

(30%)

(727,653)

(30%)

Department Totals

2,317,031

3,040,773

2,813,158

2,340,617

(700,156)

(23%)

(472,540)

(17%)

Sale of property

Expenses by Program and Services Programs and Services

Department Adminstration

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

975,280

993,389

995,820

972,232

(21,157)

(2%)

(23,588)

90,050

0

0

0

0

0%

0

0%

Vehicle/Equip Replacement

2,118,702

4,750,802

4,566,315

4,191,329

(559,473)

(12%)

(374,986)

(8%)

Department Totals

3,184,032

5,744,190

5,562,135

5,163,561

(580,629)

(10%)

(398,573)

(7%)

Expansion

(2%)

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Personal services

689,018

637,937

637,606

645,028

7,091

1%

7,422

1%

Other supplies, services and charges Repairs and maintenance

120,941

113,075

117,607

134,629

21,554

19%

17,022

14%

26,041

20,035

17,965

33,712

13,678

68%

15,748

88%

50,164

34,500

37,768

38,000

3,500

10%

232

1%

1,748

2,825

2,194

2,550

(275)

(10%)

356

16%

Depreciation

2,211,118

1,679,169

1,679,169

1,446,207

(232,962)

(14%)

(232,962)

(14%)

Capital outlay

2,111,062

3,132,230

2,945,406

2,734,327

(397,903)

(13%)

(211,079)

(7%)

Construction

(2,127,463)

0

0

0

0

0%

0

0%

97,153

124,420

124,420

129,108

4,688

4%

4,688

4%

4,250

0

0

0

0

0%

0

0%

3,184,032

5,744,190

5,562,135

5,163,561

(580,629)

(10%)

(398,573)

(7%)

Utilities Fuel and lubricants

Interdepartment charges Transfers out Department Totals

City of Lee’s Summit Annual Budget FY18

169 of 207


9: Proprietary Funds FY18 Expenses By Type Personal serv ices 12%

Interdepartment charges 3%

Other supplies, serv ices and charges 3% Repairs and maintenance 1% Utilities 1% Fuel and lubricants 0%

Depreciation 28%

Capital outlay 53%

Net Income FY16 Actual

FY17 Budget

(867,001)

(2,703,417)

FY18 Budget

FY17 Projected

Difference FY17 Budget $

(2,748,977)

(2,822,944)

Difference FY17 Projected

%

(119,527)

0%

$ (73,967)

% 0%

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Administrative Assistant

1.00

1.00

1.00

0.00

Asst. City Mgr, Internal Svcs.

0.12

0.00

0.00

0.00

Asst. City Mgr., Operations

0.12

0.12

0.12

0.00

Fleet Manager

1.00

1.00

1.00

0.00

Maintenance Shop Supervisor

1.00

1.00

1.00

0.00

Mechanic

6.00

6.00

6.00

0.00

Department Totals

9.24

9.12

9.12

0.00

Total Budget 6,000,000

5,000,000

4,000,000

Ex pens es Rev enue

3,000,000

2,000,000

1,000,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

170 of 207


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 FY18

171 of 207


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.

City of Lee’s Summit Annual Budget FY18

172 of 207


9: Proprietary Funds

ITS FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Charges for services

30

0

0

0

0

0%

0

0%

Investment earnings

35,684

0

0

0

0

0%

0

0%

2,749

0

0

0

0

0%

0

0%

2,987,494

3,635,743

3,635,743

3,475,145

(160,598)

(4%)

(160,598)

(4%)

Other Interdepartment revenues Transfers in Department Totals

314,403

249,351

249,351

305,465

56,114

23%

56,114

23%

3,340,359

3,885,094

3,885,094

3,780,610

(104,484)

(3%)

(104,484)

(3%)

Expenses by Program and Services Programs and Services

Information Servs-MIS

FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget $

%

Difference FY17 Projected $

%

2,780,134

3,130,496

3,109,919

3,205,379

74,883

2%

95,461

3%

Equipment & Software Replacmnt

183,003

708,183

708,183

570,584

(137,599)

(19%)

(137,599)

(19%)

Capital Project Activity

518,004

1,031,548

1,031,548

306,465

(725,083)

(70%)

(725,083)

(70%)

3,481,141

4,870,227

4,849,649

4,082,428

(787,799)

(16%)

(767,221)

(16%)

Department Totals

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

FY18 Budget

FY17 Projected

Difference FY17 Budget $

Personal services Other supplies, services and charges Repairs and maintenance Fuel and lubricants

%

Difference FY17 Projected $

%

1,936,647

2,191,689

2,100,041

2,231,306

39,617

2%

131,265

6%

521,996

888,937

936,604

608,471

(280,465)

(32%)

(328,133)

(35%)

380,085

436,692

460,095

443,989

7,297

2%

(16,106)

(4%)

290

1,000

1,000

800

(200)

(20%)

(200)

(20%) (38%)

Depreciation

85,640

91,500

91,500

57,107

(34,393)

(38%)

(34,393)

Capital outlay

225,689

429,101

429,101

429,848

747

0%

747

0%

0

484,950

484,950

(67,108)

(552,058)

(114%)

(552,058)

(114%)

330,793

346,358

346,358

351,974

5,616

2%

5,616

2%

0

0

0

26,041

26,041

0%

26,041

0%

3,481,141

4,870,227

4,849,649

4,082,428

(787,799)

(16%)

(767,221)

(16%)

Construction Interdepartment charges Transfers out Department Totals

City of Lee’s Summit Annual Budget FY18

173 of 207


9: Proprietary Funds FY18 Expenses By Type Transf ers out 1% Interdepartment charges 8% Capital outlay 10% Depreciation 1% Fuel and lubricants 0% Repairs and maintenance 11% Other supplies, serv ices and charges 15%

Personal serv ices 54%

Net Income FY16 Actual

FY17 Budget

FY17 Projected

FY18 Budget

Difference FY17 Budget %

$ (140,782)

(985,133)

(964,555)

(301,818)

683,315

0%

Difference FY17 Projected $ 662,737

% 0%

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY17 Budget

FY18 Budget

Difference FY17

Administrative Assistant

0.00

1.00

1.00

0.00

Applications Administrator

5.00

5.00

5.00

0.00

Applications Analyst

1.00

1.00

1.00

0.00

Asst Director, App Mgmt Svcs

1.00

1.00

1.00

0.00

Asst. City Mgr, Internal Svcs.

0.12

0.00

0.00

0.00

Audio Visual Evening

0.14

0.14

0.14

0.00

Audio Visual Sys Support PTT

0.00

0.06

0.00

-0.06

Chief Technology Officer

1.00

1.00

1.00

0.00

Communications Systems Admin.

1.00

1.00

1.00

0.00

Database Administrator

0.00

1.00

1.00

0.00

Director of Administration

0.12

0.12

0.12

0.00

GIS Coordinator

0.00

1.00

1.00

0.00

GIS Technician

2.00

1.00

1.35

0.35

IT Inventory & Records Spec.

1.00

0.00

0.00

0.00

IT Operations Supervisor

0.00

1.00

1.00

0.00

ITS Help Desk Support Spec.

1.00

1.00

1.00

0.00

ITS Project Manager

1.00

1.00

1.00

0.00

ITS Support PTT

1.44

1.44

1.44

0.00

ITS Support Services Supvr.

1.00

1.00

1.00

0.00

Manager, Entprs. Tech. Svcs.

1.00

1.00

1.00

0.00

Network Administrator

1.00

1.00

1.00

0.00

Senior GIS Analyst

1.00

0.00

0.00

0.00

Senior GIS Technician

0.00

1.00

1.00

0.00

Senior Network Admin./Supvr.

1.00

0.00

0.00

0.00

System Support Analyst

1.00

1.00

1.00

0.00

System Support Specialist

0.00

1.00

1.00

0.00

Systems Analyst

1.00

1.00

1.00

0.00

Technical Services Specialist

1.00

1.00

1.00

0.00

Web Administrator

1.00

1.00

1.00

0.00

Web Specialist

0.00

1.00

1.00

0.00

24.83

27.76

28.05

0.29

Department Totals

City of Lee’s Summit Annual Budget FY18

174 of 207


9: Proprietary Funds Total Budget 5,000,000

4,000,000

3,000,000 Ex pens es Rev enue

2,000,000

1,000,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

175 of 207


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.

City of Lee’s Summit Annual Budget FY18

176 of 207


9: Proprietary Funds

Water FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Fines and forfeitures

270,939

274,375

298,709

284,511

10,136

4%

(14,198)

(5%)

Licenses and permits

190,653

80,204

124,953

80,204

0

0%

(44,749)

(36%) 0%

Intergovernmental

440,453

0

0

0

0

0%

0

34,051,057

35,753,916

35,645,947

36,746,952

993,036

3%

1,101,005

3%

Material and fuel sales

156,430

182,412

248,663

193,500

11,088

6%

(55,163)

(22%)

Investment earnings

141,553

55,000

44,536

55,000

0

0%

10,464

23%

Other

446,233

42,350

195,253

48,605

6,255

15%

(146,648)

(75%)

Charges for services

Transfers in Department Totals

967,635

546,628

546,628

442,067

(104,561)

(19%)

(104,561)

(19%)

36,664,953

36,934,885

37,104,690

37,850,839

915,954

2%

746,149

2%

Expenses by Program and Services Programs and Services

Operations

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

5,496,380

5,992,834

5,644,450

5,800,422

(192,412)

(3%)

155,972

3%

8,975

0

0

0

0

0%

0

0%

Customer Service

30,419,924

34,244,751

33,215,763

35,059,959

815,208

2%

1,844,195

6%

Department Totals

35,925,278

40,237,585

38,860,214

40,860,381

622,796

2%

2,000,167

5%

Revenue

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Personal services

3,875,396

4,119,671

3,887,866

4,396,083

276,412

7%

508,216

13%

Supplies for resale

15,907,901

16,249,167

16,050,405

16,418,764

169,597

1%

368,359

2%

2,523,558

3,212,947

2,928,911

3,073,247

(139,701)

(4%)

144,336

5%

382,220

570,152

827,016

479,573

(90,579)

(16%)

(347,443)

(42%)

538,518

594,560

501,151

518,551

(76,009)

(13%)

17,400

3%

61,960

71,485

46,838

56,436

(15,049)

(21%)

9,598

20%

4,337,988

4,325,000

4,313,760

4,330,000

5,000

0%

16,240

0%

10,860

20,975

20,925

18,475

(2,500)

(12%)

(2,450)

(12%)

Other supplies, services and charges Repairs and maintenance Utilities Fuel and lubricants Depreciation Miscellaneous Interest

101,745

1,009,500

88,000

1,016,000

6,500

1%

928,000

1,055%

Capital outlay

59,092

0

0

0

0

0%

0

0%

Construction

(59,092)

0

0

0

0

0%

0

0%

Interdepartment charges

580,833

685,193

685,193

706,079

20,886

3%

20,886

3%

7,604,298

9,378,935

9,510,149

9,847,174

468,239

5%

337,025

4%

35,925,278

40,237,585

38,860,214

40,860,381

622,796

2%

2,000,167

5%

Transfers out Department Totals

City of Lee’s Summit Annual Budget FY18

177 of 207


9: Proprietary Funds

Interdepartment charges 2% Interest 2%

FY18 Expenses By Type Personal serv ices 11%

Miscellaneous 0% Depreciation 11% Fuel and lubricants 0% Utilities 1% Repairs and maintenance 1% Supplies f or resale 40%

Other supplies, serv ices and charges 8%

Net Income FY16 Actual

FY17 Budget

739,675

(3,302,700)

FY17 Projected

FY18 Budget

Difference FY17 Budget $

City of Lee’s Summit Annual Budget FY18

(1,755,524)

(3,009,542)

293,158

% 0%

Difference FY17 Projected $ (1,254,017)

% 0%

178 of 207


9: Proprietary Funds

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Account Services Manager

0.00

0.00

1.00

1.00

Administrative Secretary

1.00

1.00

1.00

0.00

Administrative Supervisor

1.00

1.00

1.00

0.00

Asst. Dir. of Engineering Svcs

1.00

1.00

1.00

0.00

Asst. Dir. of Support Service

1.00

1.00

1.00

0.00

Asst. Director of Operations

1.00

1.00

1.00

0.00

Community Relations Specialist

1.00

1.00

1.00

0.00

Control System Supervisor

0.00

1.00

1.00

0.00

Customer Service Rep.

3.00

3.00

3.00

0.00

Customer Service Supervisor

1.00

1.00

1.00

0.00

Director of Water Utilities

1.00

1.00

1.00

0.00

Equipment Operator Sewer

9.00

8.00

7.00

-1.00

Equipment Operator Water

5.00

6.00

5.00

-1.00

Equipment Technician

2.00

2.00

2.00

0.00

Facilities Maintenance Worker

0.00

1.00

1.00

0.00

Facilities Manager

1.00

1.00

1.00

0.00

Facilities Supervisor

1.00

0.00

0.00

0.00

Facilities Technician

2.00

0.00

0.00

0.00

Fire Hydrant Painter

0.50

0.50

0.00

-0.50

0.00

2.00

2.00

0.00

11.00

8.00

8.00

0.00

Management Analyst - W.U.

0.00

0.00

1.00

1.00

Meter Service Technician

8.00

8.00

8.00

0.00

Metered Services Specialist

1.00

1.00

1.00

0.00

Metered Services Supervisor

1.00

1.00

1.00

0.00

Operations Technician

0.00

0.00

2.00

2.00

Seasonal Laborer

0.00

0.00

0.50

0.50

Secretary

2.00

2.00

2.00

0.00

Utility Engineer

0.00

0.00

1.00

1.00

Utility System Manager

2.00

2.00

2.00

0.00

Utility System Supervisor

2.00

3.00

3.00

0.00

Utility Technician

0.00

1.00

1.00

0.00

Water Utilities Analyst

1.00

1.00

1.00

0.00

Water Utilities Mgmt Analyst

1.00

1.00

0.00

-1.00

60.50

60.50

62.50

2.00

Instrumentation & Controls Tec Maintenance Worker

Department Totals

Total Budget 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 Ex pens es Rev enue

20,000,000 15,000,000 10,000,000 5,000,000 0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

179 of 207


9: Proprietary Funds 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 City’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.

City of Lee’s Summit Annual Budget FY18

180 of 207


9: Proprietary Funds

Solid Waste FY18 Budget Summary Revenues Difference FY17 Budget

Difference FY17 Projected

Revenues

FY16 Actual

Fines and forfeitures

24,596

0

39,556

10,000

10,000

0%

(29,556)

(75%)

FY17 Budget

FY18 Budget

FY17 Projected

$ Charges for services

%

$

%

2,046,725

0

0

0

0

0%

0

0%

Material and fuel sales

38,280

0

0

0

0

0%

0

0%

Investment earnings

66,010

0

1,430

1,430

1,430

0%

0

0%

1,320,761

677,000

677,001

577,000

(100,000)

(15%)

(100,001)

(15%)

Sale of property

(140,780)

0

0

0

0

0%

0

0%

Transfers in

103,470

0

0

0

0

0%

0

0%

3,459,061

677,000

717,987

588,430

(88,570)

(13%)

(129,557)

(18%)

Other

Department Totals

Expenses by Program and Services Programs and Services

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

532,614

129,160

190,339

129,934

774

1%

(60,405)

(32%)

4,137,107

445,018

445,018

397,462

(47,556)

(11%)

(47,556)

(11%)

54,107

0

0

0

0

0%

0

0%

Solid Waste Management

508,425

0

0

0

0

0%

0

0%

Yard Waste

117,464

0

0

0

0

0%

0

0%

Recycling

105,551

0

0

0

0

0%

0

0%

Household Hazardous Waste

107,091

0

0

0

0

0%

0

0%

Environment Montrg & Comp

874,688

425,000

503,378

440,000

15,000

4%

(63,378)

(13%)

0

3,563,163

1,650,132

1,143,775

(2,419,388)

(68%)

(506,357)

(31%)

6,437,047

4,562,341

2,788,867

2,111,171

(2,451,169)

(54%)

(677,695)

(24%)

Department Administration Debt & Cash Management Customer Service

Capital Projects Department Totals

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$ Personal services Other supplies, services and charges Repairs and maintenance

Difference FY17 Projected

%

$

672,460

94,644

99,391

101,112

6,468

7%

1,721

% 2%

1,035,301

533,783

599,411

418,641

(115,142)

(22%)

(180,770)

(30%)

119,868

11,050

6,003

10,800

(250)

(2%)

4,797

80%

Utilities

46,908

0

0

0

0

0%

0

0%

Fuel and lubricants

80,867

2,160

600

612

(1,548)

(72%)

12

2%

Depreciation

200,256

180,455

180,455

174,462

(5,993)

(3%)

(5,993)

(3%)

Construction

225,611

3,563,163

1,725,921

1,228,775

(2,334,388)

(66%)

(497,146)

(29%)

Interdepartment charges

230,700

2,086

2,086

1,769

(317)

(15%)

(317)

(15%)

Transfers out

3,825,076

175,000

175,000

175,000

0

0%

0

0%

Department Totals

6,437,047

4,562,341

2,788,867

2,111,171

(2,451,169)

(54%)

(677,695)

(24%)

City of Lee’s Summit Annual Budget FY18

181 of 207


9: Proprietary Funds FY18 Expenses By Type Personal serv ices 5%

Transf ers out 8%

Other supplies, serv ices and charges 20%

Interdepartment charges 0%

Repairs and maintenance 1%

Fuel and lubricants 0% Depreciation 8%

Construction 58%

Net Income FY16 Actual

FY17 Budget

FY18 Budget

FY17 Projected

Difference FY17 Budget $

(2,977,986)

(3,885,341)

(2,070,880)

(1,522,741)

Difference FY17 Projected

%

2,362,599

0%

$ 548,138

% 0%

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Environmental Programs Manager

1.00

0.00

0.00

0.00

Equipment Operator

6.00

0.00

0.00

0.00

Maintenance Worker

4.00

0.00

0.00

0.00

Recycling Center Attendant PTR

0.60

0.00

0.00

0.00

Scalehouse Attendant PTR

1.20

0.00

0.00

0.00

Site Supervisor

1.00

0.00

0.00

0.00

Solid Waste Superintendent

1.00

1.00

1.00

0.00

14.80

1.00

1.00

0.00

Department Totals

Total Budget 7,000,000

6,000,000

5,000,000

4,000,000 Ex pens es Rev enue

3,000,000

2,000,000

1,000,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

182 of 207


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.

City of Lee’s Summit Annual Budget FY18

183 of 207


9: Proprietary Funds

Airport FY18 Budget Summary Revenues Revenues

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

%

$ Fines and forfeitures

Difference FY17 Projected $

%

1,322

1,530

1,530

1,600

70

5%

70

5%

2,414,497

7,315,000

7,315,000

8,474,950

1,159,950

16%

1,159,950

16%

Charges for services

574,883

621,118

691,468

798,946

177,828

29%

107,478

16%

Material and fuel sales

672,008

662,969

554,339

752,110

89,141

13%

197,771

36%

Investment earnings

41,458

22,627

22,627

39,000

16,373

72%

16,373

72%

Other

22,391

23,515

27,938

42,452

18,937

81%

14,514

52%

220,753

124,554

124,554

76,696

(47,858)

(38%)

(47,858)

(38%)

3,947,312

8,771,313

8,737,456

10,185,754

1,414,441

16%

1,448,298

17%

Intergovernmental

Transfers in Department Totals

Expenses by Program and Services Programs and Services

Department Administration

FY16 Actual

FY17 Budget

FY17 Projected

Difference FY17 Budget

FY18 Budget

$

%

Difference FY17 Projected $

%

261,656

256,379

262,546

281,663

25,284

10%

19,117

7%

Debt & Cash Management

1,088,529

8,453,564

8,539,689

9,828,461

1,374,898

16%

1,288,773

15%

Airport Bldg & Grnd Maint

148,560

154,315

189,914

241,176

86,861

56%

51,262

27%

Runway & Taxiway Maint

117,144

169,637

160,116

181,406

11,769

7%

21,290

13%

Pilot Supplies & Fuel

659,409

690,581

575,010

883,028

192,446

28%

308,017

54%

Environment Montrg & Comp

10,548

26,327

47,167

35,987

9,660

37%

(11,180)

(24%)

Infrastructure Improvemts

15,234

15,393

1,518,474

10,705

(4,688)

(30%)

(1,507,769)

(99%)

2,473

0

0

0

0

0%

0

0%

2,303,554

9,766,197

11,292,916

11,462,427

1,696,230

17%

169,511

2%

Revenue Department Totals

Expenses by Type Expense Category

FY16 Actual

FY17 Budget

Difference FY17 Budget

FY18 Budget

FY17 Projected

$

%

Difference FY17 Projected $

%

Personal services

380,001

437,005

408,348

527,967

90,962

21%

119,619

29%

Supplies for resale

445,304

440,447

364,924

453,735

13,288

3%

88,811

24%

Other supplies, services and charges Repairs and maintenance

141,582

211,127

222,231

250,890

39,763

19%

28,659

13%

81,457

54,049

90,219

57,495

3,446

6%

(32,724)

(36%)

46,743

37,345

41,365

46,050

8,705

23%

4,685

11%

7,788

8,500

8,900

7,025

(1,475)

(17%)

(1,875)

(21%)

566,064

556,115

574,865

593,113

36,998

7%

18,248

3%

41,195

45,920

35,920

45,150

(770)

(2%)

9,230

26%

769

120,753

188,128

237,652

116,900

97%

49,525

26%

0

0

1,503,081

172,810

172,810

0%

(1,330,271)

(89%)

Utilities Fuel and lubricants Depreciation Miscellaneous Interest Capital outlay Construction Interdepartment charges Transfers out Department Totals

0

0

0

0

0

0%

0

0%

68,482

78,240

78,240

72,843

(5,397)

(7%)

(5,397)

(7%)

524,169

7,776,696

7,776,696

8,997,696

1,221,000

16%

1,221,000

16%

2,303,554

9,766,197

11,292,916

11,462,427

1,696,230

17%

169,511

2%

City of Lee’s Summit Annual Budget FY18

184 of 207


9: Proprietary Funds FY18 Expenses By Type Personal serv ices 5% Supplies f or resale 4% Other supplies, serv ices and charges 2% Repairs and maintenance 1% Utilities 0% Fuel and lubricants 0% Depreciation 5%

Transf ers out 78%

Net Income FY16 Actual

FY17 Budget

FY18 Budget

FY17 Projected

Difference FY17 Budget $

1,643,759

(994,884)

(2,555,460)

(1,276,673)

Difference FY17 Projected

%

(281,789)

0%

$ 1,278,787

% 0%

Full Time Equivalents (FTE) Job Titles

FY16 Budget

FY18 Budget

FY17 Budget

Difference FY17

Airport Attendant

3.26

1.26

1.26

0.00

Airport Intern

0.00

0.20

0.20

0.00

Airport Maintenance Technician

1.00

0.00

0.00

0.00

Airport Manager

1.00

1.00

1.00

0.00

Assistant Airport Manager

0.00

1.00

1.00

0.00

Facilities Maintenance Worker

0.00

2.00

2.00

0.00

Line Attendant

0.00

2.00

3.70

1.70

Line Attendant Supervisor

1.00

0.00

0.00

0.00

Department Totals

6.26

7.46

9.16

1.70

Total Budget 12,000,000

10,000,000

8,000,000

Ex pens es Rev enue

6,000,000

4,000,000

2,000,000

0 FY 16 Budget

FY 17 Budget

City of Lee’s Summit Annual Budget FY18

FY 17 Projected

FY 18 Budget

185 of 207


9: Proprietary Funds

SHORT-TERM DISABILITY FUND YEAR BEGINNING JULY 1, 2017

FY 2013 ACTUAL

REVENUES: Charges for services Transfers Interest Total Revenues

$

EXPENDITURES: Claims Other Total Expenditures

$

Excess of Revenues Over (Under) Expenditures

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 ACTUAL

32,372

30,682

32,236

396

197

611

32,768 $

30,879 $

32,847 $

FY 2017 BUDGET

1,413 1,413 $

FY 2017 PROJECTED

34,146

31,188

0

612

FY 2018 BUDGET 34,944

34,146 $

31,800 $

34,944

22,306 -

7,874 -

12,921 -

20,605 -

39,533 -

18,427 -

38,015 -

22,306 $

7,874 $

12,921 $

20,605 $

39,533 $

18,427 $

38,015

(5,387)

13,373

(3,071)

10,462

23,005

Fund Balance, Beginning of Year $

81,017 $

91,479 $

114,484 $

134,410 $

115,218 $

115,218 $

128,591

Fund Balance, End of Year

91,479 $

114,484 $

134,410 $

115,218 $

109,831 $

128,591 $

125,520

$

19,926

(19,192)

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 FY13 through FY156is $21,795. The Fiscal Year 2018 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 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2015 Revenues

City of Lee’s Summit Annual Budget FY18

ACTUAL FY 2016 Expenses

BUDGET FY 2017

PROJECTED FY 2017

BUDGET FY 2018

Fund Balance

186 of 207


9: Proprietary Funds

CLAIMS AND DAMAGES RESERVE TRUST FUND YEAR BEGINNING JULY 1, 2017

FY 2013 ACTUAL Revenues: Refunds Premiums Insurance Claims Contributions Transfer in: Other Funds Interest Income Miscellaneous Total Revenues

FY 2015 ACTUAL

FY 2016 ACTUAL

FY 2017 BUDGET

FY 2017 PROJECTED

FY18 BUDGET

75,000 820 -

150,000 11,398 -

885,784 1,237 -

881,903 2,547 21,494

597,091 -

1,051,858 135,000 -

1,057,183 300,000 -

$

75,820 $

161,398 $

887,021 $

905,944 $

597,091 $

1,186,858 $

1,357,183

$

113,252 113,252 $

193,211 193,211 $

778,301 778,301 $

4,708 878,218 882,926 $

875,000 875,000 $

1,153,932 1,153,932 $

845,625 845,625

(37,432)

(31,813)

108,720

32,926

511,558

Expenditures: Transfers Out Special Assessments Transfer Out Personal Services Claims and Damages Insurance Premiums Claims and Professional expenses Professional Fees Enterprise Resource Planning (ERP) Total Expenditures

FY 2014 ACTUAL

Excess of Revenues Over (Under) Expenditures

23,018

(277,909)

Fund Balance, Beginning of Year

$

86,166 $

48,734 $

16,921 $

125,641 $

148,659 $

148,659 $

181,585

Fund Balance, End of Year

$

48,734 $

16,921 $

125,641 $

148,659 $

(129,250) $

181,585 $

693,143

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 $100,000 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 $10,000 to the fund annually, which accounts for $150,000. The remaining amount, currently established at $150,000, 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 $150,000. This method assures contribution from all City departments while assessing risk costs appropriately based on actual losses incurred.

REVENUES, EXPENDITURES & FUND BALANCE $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $$(200,000) $(400,000) ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2015 Revenues

City of Lee’s Summit Annual Budget FY18

ACTUAL FY 2016 Expenses

BUDGET FY 2017

PROJECTED FY 2017

BUDGET FY18

Fund Balance

187 of 207


9: Proprietary Funds WORKERS COMPENSATION SELF-INSURANCE YEAR BEGINNING JULY 1, 2017

FY 2014 ACTUAL

REVENUES: Other Revenue/Refunds Premiums Interest Transfers In Total Revenues EXPENDITURES: Claims and Expenses Prior Year Claim Settlements Professional Fees and Administrative Costs Insurance (Excess and State Fees) Prior Period Adjustment Total Expenditures

FY 2015 ACTUAL

FY 2016 ACTUAL

FY 2017 BUDGET

FY 2017 PROJECTED

FY18 BUDGET

FY 2019 PROJECTED

FY 2020 PROJECTED

FY 2021 PROJECTED

$

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

49,546 895,539 11,211 956,296 $

2,350 907,493 28,079 937,922 $

951,167 7,757 958,924 $

2,792 950,700 13,652 967,144 $

1,023,692 10,500 1,034,192 $

904,402 7,757 912,159 $

904,402 7,757 912,159 $

904,402 7,757 912,159

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

511,266 (78,340) 20,064 150,239

$

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

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

608,558 28,648 160,057 797,263 $

1,034,191 1,034,191 $

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

272,421

334,693

2,157

2,157

Excess of Revenues Over (Under) Expenditures

29,301

603,229 $

29,572

169,881

1

2,157

Fund balances, Beginning of Year

$

1,001,558 $

1,030,859 $

1,303,280 $

1,637,973 $

1,637,973 $

1,807,854 $

1,807,855 $

1,810,012 $

1,812,169

Fund balances, End of Year

$

1,030,859 $

1,303,280 $

1,637,973 $

1,667,545 $

1,807,854 $

1,807,855 $

1,810,012 $

1,812,169 $

1,814,326

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.

REVENUES, EXPENDITURES & FUND BALANCE

$2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ACTUAL FY 2014

ACTUAL FY 2015

ACTUAL FY 2016

BUDGET FY 2017 Revenues

City of Lee’s Summit Annual Budget FY18

PROJECTED FY 2017 Expenditures

BUDGET FY18

PROJECTED FY 2019

PROJECTED FY 2020

PROJECTED FY 2021

Fund Balance

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9: Proprietary Funds UNEMPLOYMENT TRUST FUND YEAR BEGINNING JULY 1, 2017

Revenues: Premiums Special Assessment Interest Total Revenues Expenditures: Claims paid Third Party Administrator Expense Total Expenditures

FY 2014 ACTUAL $

-

FY 2015 ACTUAL $

25,869 $

646

FY 2016 ACTUAL

FY 2017 BUDGET

FY 2017 PROJ

FY 2018 BUDGET

FY 2019 Projected

FY 2020 Projected

FY 2021 Projected

20,368

29,268

29,269

60,720

60,720

60,720

60,720

411

898

0

0

0

483

483

483

$

646 $

26,280 $

21,266 $

29,268 $

29,269 $

60,720 $

61,203 $

61,203 $

61,203

$

38,580 $ 2,070

12,885 $ 2,400

32,630 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

$

40,650 $

15,285 $

35,030 $

32,262 $

32,262 $

32,262 $

33,931 $

33,931 $

33,931

(2,994)

(2,993)

28,458

27,272

27,272

27,272

Excess of revenues over (under) expenditures

(40,004)

10,995

(13,764)

Fund balance, beginning of year

$

104,134 $

64,130 $

75,125 $

61,361 $

61,361 $

58,368 $

86,826 $

114,098 $

141,370

Fund balance, end of year

$

64,130 $

75,125 $

61,361 $

58,367 $

58,368 $

86,826 $

114,098 $

141,370 $

168,642

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 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $ACTUAL FY 2014

ACTUAL FY 2015

ACTUAL FY 2016

BUDGET FY 2017

Revenue

City of Lee’s Summit Annual Budget FY18

PROJ FY 2017

Expenses FISCAL YEAR

BUDGET FY 2018

Projected FY 2019

Projected FY 2020

Projected FY 2021

Fund Balance

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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 city’s debt issued to construct streets and sanitary sewers in the district. The basis of accounting is the same for both budgeting and GAAP reporting purposes. This requires that the modified accrual method bases, with the revenues being recorded when measurable and available, and expenditures being recorded when the liability is incurred. Revenues susceptible to accrual are sales taxes, economic activity taxes, property taxes and interest revenue.

City of Lee’s Summit Annual Budget FY18

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10: Debt Service Funds General

GENERAL OBLIGATION DEBT SERVICE FUND YEAR BEGINNING JULY 1, 2017

REVENUES: Taxes (Net Bad Debt) Interest Penalty/Interest Bond Proceeds Other Taxes Refunds & Reimbursements Transfer In Total Revenues EXPENDITURES: County Collection Fees Debt Service: Principal Retirement Interest & Fiscal Charges Total Expenditures

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 ACTUAL

FY 2017 BUDGET

FY 2017 PROJ

FY 2018 BUDGET

$

8,027,401 $ 59,848 39,293 15,659,417 0 4,937

7,909,356 $ 62,163 16,547 82,461 0 544

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

8,332,556 $ 93,286 45,167 (13,135) 9,741

8,088,635 $ 45,000 41,250 0 0

8,088,635 $ 45,000 41,250 0 0

8,071,441 44,000 45,160 (60,000) 0

$

23,790,896 $

8,071,071 $

8,143,952 $

8,467,615 $

8,174,885 $

8,174,885 $

8,100,601

$

132,284

$

Excess of Revenues Over (Under) Expenditures

$

135,153

$

136,101

$

142,661

$

140,603

$

140,603

$

113,600

21,660,000 1,187,203

6,200,000 1,543,570

6,210,000 1,483,069

7,740,000 1,485,663

6,570,000 1,683,900

6,570,000 1,683,900

7,100,000 1,306,000

22,979,487 $

7,878,723 $

7,829,170 $

9,368,324 $

8,394,503 $

8,394,503 $

8,519,600

811,409

192,348

314,782

(900,709)

(219,618)

(219,618)

(418,999)

Fund Balances, Beginning of Year

$

5,763,478 $

6,574,887 $

6,767,235 $

7,082,017 $

6,181,308

6,181,308 $

5,961,690

Fund Balances, End of Year

$

6,574,887 $

6,767,235 $

7,082,017 $

6,181,308 $

5,961,690 $

5,961,690 $

5,542,691 (91,249) (0.01117879)

DEBT SERVICE LEVY

FY 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 ACTUAL

FY 2017 BUDGET

Per $100 Assessed Valuation

$

$

$

$

$

Assessed Valuation

$

$ Growth

$

0.4697

1,638,685,805 $ 36,461,607

$

0.4697

1,692,175,370 $ 53,489,565

$

0.4697

1,686,144,194 $ (6,031,176) $

0.4697

1,792,337,036 $ 106,192,842

$

0.4697

FY 2017 PROJ

FY 2018 BUDGET

$

0.4697 $

0.4697

1,844,106,043 $

1,850,670,453 $

1,958,680,928

51,769,007

$

58,333,417

$

108,010,475

% Growth

2.25%

3.26%

-0.36%

6.30%

3.07%

3.25%

5.84%

Allowance for Uncollectables

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 authorized 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.

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 2013

ACTUAL FY 2014

ACTUAL FY 2015

ACTUAL FY 2016

BUDGET FY 2017

PROJ FY 2017

BUDGET FY 2018

FISCAL YEAR

City of Lee’s Summit Annual Budget FY18

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10: Debt Service Funds General

Debt Service Requirements to Maturity General Obligation Bonds STORM WATER PUBLIC SAFETY Police Facilty 2013A 2013A

CURBS

TUDOR ROAD Strother Road

STREETSCAPE Refunding 2013B

CITY HALL Refunding 2013B

DATED 2/1/13

DATED 2/1/13

DATED 2/1/13

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

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

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

825,000 825,000 490,000 520,000 520,000

TOTAL

$697,000

$7,868,000

$3,180,000

$7,000,000

$4,360,000

$2,500,000

$2,000,000

Interest Rates

2.00-3.00%

3.00-4.00%

3.00%-4.00

2.00%-3.00%

2.00%-3.00%

2.00%-3.00%

2.00%-3.00%

DATED 2/1/13

2013A

2013A

2013A

DATED 2/1/13

DATED 2/1/13

DATED 2/1/13

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

450,000

2,645,000 1,715,000

990,000

1,225,000 2,850,000 2,925,000

1,550,000

Orchard Street

Pryor Road

Strother

Highway 50

Storm Water

Tudor Road

50 Highway

Fire No. 3

2013C

2013C

2015A

2015A

2015A

2016A

2016A

2017A

DATED 10/24/13

DATED 10/24/13

DATED 10/24/13

DATED 10/24/13

DATED 10/24/13

DATED 2/18/16

DATED 2/18/16

DATED 8/30/17

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

415,000 440,000 470,000 495,000

260,000 255,000 365,000

100,000 300,000

130,000 480,000

465,000

900,000 900,000 450,000 300,000 300,000 300,000 300,000 300,000 300,000 235,000 600,000 900,000

900,000 900,000 450,000 300,000 300,000 300,000 300,000 300,000 300,000 365,000

300,000 200,000 400,000 500,000 600,000 700,000 700,000 800,000 800,000

TOTAL

$1,820,000

$880,000

$400,000

$610,000

$465,000

$5,785,000

$4,415,000

$5,000,000

3.00%-5.00%

2.00%-3.00%

2.00%

1.75-5.00

1.75-5.00

2.00-5.00

Interest Rates 2.00%-3.00% 3.00%-5.00%

City of Lee’s Summit Annual Budget FY18

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10: Debt Service Funds General

Fire Equip 2016 Fire Equip 2002 Police Equip P/S Equip ITS 2017A

2017A

2017A

2017A

DATED 8/30/17

DATED 8/30/17

DATED 8/30/17

DATED 8/30/17

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

250,000 250,000 250,000 250,000

75,000

400,000 500,000 500,000 600,000 800,000 1,200,000 1,400,000 1,500,000 1,100,000

125,000 125,000 125,000 125,000

TOTAL

$1,000,000

$75,000

$8,000,000

$500,000

Interest Rates

3.00-5.00

5.00

2.00-5.00

3.00-5.00

PAYMENTS FOR ALL GENERAL OBLIGATION BONDS DURING FY PRINCIPAL INTEREST

TOTAL

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

6,495,000 6,565,000 5,215,000 4,855,000 4,380,000 4,945,000 5,345,000 5,605,000 5,275,000 3,450,000 3,525,000 900,000

1,642,258 1,562,800 1,282,950 1,092,350 928,700 805,750 649,500 495,150 356,000 221,750 125,250 22,500

8,137,258 8,127,800 6,497,950 5,947,350 5,308,700 5,750,750 5,994,500 6,100,150 5,631,000 3,671,750 3,650,250 922,500

TOTAL

$56,555,000

$9,184,958

$65,739,958

City of Lee’s Summit Annual Budget FY18

BALANCE @6/30 35,485,000 28,920,000 23,705,000 18,850,000 14,470,000 9,525,000 4,180,000 (1,425,000) (6,700,000) (10,150,000) (13,675,000) (14,575,000)

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10: Debt Service Funds General

City of Lee's Summit, Missouri Computation of Legal Debt Margin June 30, 2017 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

0 7,868,000 697,000 7,000,000 3,180,000 0 4,360,000 2,500,000 2,000,000 2,700,000 610,000 465,000 400,000 0 5,785,000 4,415,000

Authorized But Unissued Amounts Weather Radios ( 75,000 Unissued) Strother View High ($1.0MM Unissued) 50 highway and 291 Highwa ($8.6 MM Unissued) Road Imp (Orchard & Pryor) ($595,000 Unissued) Cultural Arts (Unissued) Public Safety Fire ($6,000,000 Unitss Public Safety Police (8,500,000 Unissue Total Authorized at 6-30-17 Unissued Total Issued and Outstanding

City of Lee’s Summit Annual Budget FY18

75,000 1,000,000 2,000,000 595,000 63,000 6,000,000 8,500,000 29,506,000

30,707,000

60,213,000 (18,233,000) 41,980,000

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10:General Debt Service Funds

City of Lee's Summit, Missouri Computation of Legal Debt Margin June 30, 2017 General Obligation Bonds Ordinary (1)

Additional (2)

Assessed Valuation (January 1, 2016)

$1,808,178,301

Constitutional debt limit

$

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

Total

$

180,817,830

180,817,830

361,635,661

29,506,000

30,707,000

60,213,000

3,387,012 26,118,988

3,524,876 27,182,124

6,911,888 53,301,112

154,698,843

153,635,706

308,334,550

Legal Debt Margin June 30, 2017

Additional

Debt Margin

Ordinary

7% 8%

85%

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 Lee’s Summit Annual Budget FY18

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10:General Debt Service Funds PARK CERTIFICATE OF PARTICIPATION DEBT SERVICE FUND YEAR BEGINNING JULY 1, 2017 FY 2012 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 2013 ACTUAL

FY 2014 ACTUAL

FY 2015 ACTUAL

FY 2016 ACTUAL

FY 2017 BUDGET

FY 2017 PROJ

FY 2018 BUDGET

$ 3,169,317 $ 3,080,479 $ 3,321,232 $ 3,500,464 $ 3,772,051 $ 3,922,462 $ 3,922,462 $ 3,950,000 (394,228) (14,229) (141,266) (173,547) (212,009) (177,597) (214,000) (221,200) 7,411 5,930 16,235 6,658 21,973 5,000 5,000 5,000 505,794 1,709,500 7,432,500 $ 3,288,294 $ 4,781,680 $ 3,196,201 $ 10,766,075 $ 3,582,015 $ 3,749,865 $ 3,713,462 $ 3,733,800

$

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

$

175,000 750,000

$

175,000 1,800,000

$

175,000 -

$

175,000 -

$

175,000 -

1,390,000 504,333

1,370,000 450,770

10,007,500 247,363

1,497,000 86,497

2,401,500 156,860

2,401,500 156,860

2,511,500 37,905

$ 2,934,734

$ 3,580,583

$ 3,195,770

$ 11,179,863

$ 3,558,497

$ 2,733,360

$ 2,733,360

$ 2,724,405

353,560

1,201,097

431

23,518

1,016,505

980,102

1,009,395

Excess of Revenues Over (Under) Expenditures

(413,788)

Fund Balances, Beginning of Year

$

810,836

$ 1,164,396

$ 2,365,493

$ 2,365,924

$ 1,952,136

$ 1,975,654

$ 1,975,654

$ 2,955,756

Fund Balances, End of Year

$ 1,164,396

$ 2,365,493

$ 2,365,924

$ 1,952,136

$ 1,975,654

$ 2,992,159

$ 2,955,756

$ 3,965,151

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 Expenditures

$12,000,000 $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 2012

ACTUAL FY 2013

ACTUAL FY 2014

ACTUAL FY 2016

ACTUAL FY 2015

BUDGET FY 2017

PROJ FY 2017

BUDGET FY 2018

FISCAL YEAR

City of Lee’s Summit Annual Budget FY18

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APPENDIX:

Accrual Accounting: A method of accounting that recognizes the financial effect of transactions, events and inters fund activities when they occur, regardless of the timing of related cash flows. 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: Pre-Audit: Posting year-end closing entries, 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

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General Appendix theory, represents the ultimate bond purchaser. The Bond opinion provides tax-exempt. Generally responsible for producing the legal documents required for the sale.

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.

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). 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 City of Lee’s Summit Annual Budget FY18

Call Date: The date on which a bond may be redeemed before maturity at the option of the Issuer. Call Feature (Redemption Feature): Enables the Issuer to pay off “redeem” a bond prior to its maturity date. The “call date” is the earliest date the bond may be redeemed “called”. Usually a premium is paid for the earliest call dates. Capital Assets: Assets of significant value and having a useful life of several years. Capital Assets are also called Fixed Assets. Capital Improvement Program [CIP]: A plan of proposed capital expenditures and the means of financing them. The capital budget is usually adopted as part of the complete annual budget which includes both operations and capital outlays. The capital budgets should be based on a capital improvement program [CIP]. Capital Outlays: Expenditures for the acquisition of capital assets. Capital Projects: Projects that purchase or construct capital assets. Typically a capital project encompasses a purchase of land and/or the construction of a building or facility.

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

City of Lee’s Summit Annual Budget FY18

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

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General Appendix process of determining credit quality of an issue, especially in the case of general obligation bonds. Debt Service: The amount of money necessary to pay interest on an outstanding debt, the serial meteorites of principal for serial bonds and the required contributions to an amortization of sinking fund for term bonds. Debt Service Fund: A fund established to account for the payment of interest and principal on all general obligation debt. Debt Service Schedule: A table listing the annual payments necessary to meet debt service requirements over the period of time the bonds are to be outstanding. Defeasance: Termination of the rights and interests of the bondholders and of their lien on the pledged revenues in accordance with the terms of the bond contract for the prior issue of bonds. Defeasance usually occurs in connection with the refunding of an outstanding issue before the final payment, or provision for future payment, of principal and interest on a prior issue. Delinquent Taxes: Taxes remaining unpaid on and after the date on which a penalty for nonpayment is attached. Depreciation: 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.

City of Lee’s Summit Annual Budget FY18

Disbursements: Recording accounts payable, reviewing invoices and supporting documents, and making payments to vendors. Encumbrances: Obligations in the form of purchase orders, contracts or salary commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. Enterprise Activity: A revenue- generating project or business which supplies funds necessary to pay debt service or bonds issued to finance the facility. The debts of such projects are selfliquidating when the projects earn sufficient moneys to cover all debt service and other requirements imposed under the bond contract. Enterprise Debt: Debt which is to be retired primarily from the earnings of publicly owned and operated enterprises. Enterprise Fund Accounting: Accounting used for government operations that are financed and operated in a manner similar to business enterprises and for which preparation of an income statement is desirable. Expenditures: Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposed are made. Expense: Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges. Feasibility Study: A report of the financial practicality of a proposed project and financing thereof, which may include estimated of revenues 201 of 207


General Appendix that will be generated and a revenue of the physical operating, economic or engineering aspects of the proposed project. Federal National Mortgage Association (FNMA) or Fannie Mae): One of the two presently existing corporations which formerly comprised the FNMA. As it currently exists, FNMA is a government- sponsored private corporation authorized to purchase and sell mortgages and to otherwise facilitate the orderly operation of a secondary market for home mortgages. Financial Advisor or Consultant: With respect to a new issue of municipal bonds, a consultant who advises the issuer on matters pertinent to the issue, such as structure, timing, marketing, fairness of pricing, terms and bond ratings. Can provide cash management services and can serve as an agent for the issuer during the pricing of bonds during a negotiated sale. Fiscal Agent: An agent (usually and incorporated bank or trust company) designated by a government to act for it in any of several capacities in the sale, administration and payment of bonds and coupons. Fiscal Policy: a government’s policy relating to budgeting of expenditures and revenues. 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 City of Lee’s Summit Annual Budget FY18

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 202 of 207


General Appendix local units of government are secured by a pledge of the issuer’s ad valorem taxing power.

to local governments from state and federal governments and made for specified purposes.

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

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.

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

City of Lee’s Summit Annual Budget FY18

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 203 of 207


General Appendix maturing increases at approximately the same rate as the amount of interest declines, resulting in substantially equal annual debt service payments over the life of the bonds. Levy: (verb) To impose taxes, special assessments, or service charges for the support of government activities. (noun) The total amount of taxes, special assessments or service charges imposed by a governmental unit. Liability: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed or refunded at some future date. Note: This term does not include encumbrances. 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 City of Lee’s Summit Annual Budget FY18

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. 204 of 207


General Appendix 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 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 employees’ account balance, making investments on behalf of pension funds, and disbursing retirement income.

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.

Per Capita Debt: The amount of an issuing municipality’s debt outstanding divided by the population residing in the municipality.

Redemption: A transaction in which the issuer returns the principal amount represented by an outstanding security.

Pledged Revenues: The monies obligated for the payment of debt service and other deposits required by bond contract.

Refunding: A procedure whereby an issuer refinances an outstanding bond issue by issuing new bonds.

Policy Analysis and Research: Evaluation of policy options and recommending policies on revenue generation, financial administration, and financial aspects of operating policies and activities.

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

City of Lee’s Summit Annual Budget FY18

Registered Bond: A bond whose owner is designated on records maintained for this purpose by registrar, the ownership of which 205 of 207


General Appendix 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 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. City of Lee’s Summit Annual Budget FY18

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. 206 of 207


General Appendix Tax-Exempt Bond: Another term for a municipal bond. Interest on many municipal bonds is exempt from federal income taxation. Tax Rate: The amount of tax stated in terms of a unit of the tax base. Tax Rate Limit: The maximum rate or millage of tax which a local government may levy. Trustee: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. Underwriters: A dealer which purchases a new issue of securities for resale. Traders with contacts with large bond buyers and ability to price the bonds for sale.

Upgrade: The rising of a rating by a rating service due to the improved credit quality of the issue or issuer. Utility Billing: Determining amounts of water, sewer, electric bills; sending bills to customers, depositing and posting receipts, collecting overdue amounts. Vehicle Equipment Replacement Program [VERP]: VERP provides funds for replacement of vehicles at a scheduled future date through user departments paying rental or lease charges. The rate also includes routine maintenance service much like a commercial leasing company. 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

Mortgage

FTE: Full Time Equivalents

City of Lee’s Summit Annual Budget FY18

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

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City of Lee's Summit Fy18 Budget  
City of Lee's Summit Fy18 Budget  

City of Lee's Summit, Missouri Fiscal Year 2018 Budget