City of Lee’s Summit, Missouri

Fiscal Year 2012‐2013 Budget 

June 7, 2012

B d t A hBudget Approach• Top Priorities Funded in the FY13 Budget:Top Priorities Funded in the FY13 Budget:

– Public safety– Public infrastructure– Economic developmentEconomic development– Customer service

• Guiding Factors5 fi i l f t– 5 year financial forecast

– Fund balance policy

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

B d t PBudget ProcessFinancial Analysis

December 2011 FY12 mid‐year projections due

February 2012 Review of general fund budget scenarios

Budget Review and Adoption

March 12 Presentation of City Manager's FY13 general fund budget to Budget Committee begins*

May 14 & 29 Televised budget presentations from departments 

June 7 Public hearing

d dJune 21 Budget adoption

New fiscal year begins: July 1

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

l d d lGeneral Fund: Fund Balance

$

General Fund Year End BalanceModerate Revenue Growth

$20,000,000 

$25,000,000 

$30,000,000 

20% of Exp

Current Balance

$10,000,000 

$15,000,000 

$5,000,000 FY08 FY09 FY10 FY11 FY12 

BudFY12 Proj

FY13 FY14 FY15 FY16 FY17

Fiscal Year Projected

FY13 FY14 FY15 FY16 FY17Beg. fund balance: $ 11,559,540 $ 12,496,020 $ 13,848,655 $ 14,274,110 $ 14,729,391

End fund balance: $ 12,496,020 $ 13,848,655 $ 14,274,110 $ 14,729,391 $ 15,646,199

End fb as % of exp: 21.31% 23.02% 23.16% 23.33% 24.22%

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

l d d i hli hGeneral Fund: FY13 Budget Highlights

• Public Safety: Fire Department management audit / accreditation process new Police• Public Safety: Fire Department management audit / accreditation process; new Police training facility

• Public Infrastructure: Curb replacement; pavement management; sidewalk; sanitary sewer line improvement water main rehabilitationsanitary sewer line improvement; water main rehabilitation

• Sustainable Development: Transit‐oriented development study; Rock Island Railroad Coalition efforts

• Technology: Enterprise Resource Planning (ERP); Windows 7 migration

• Communication and Citizen Engagement: Web‐based citizen engagement tool; comprehensive citizen survey; cable channel upgradescomprehensive citizen survey; cable channel upgrades

• Performance Excellence: Organizational Business Plan

• Arts and Culture: Bond election on cultural facilities• Arts and Culture: Bond election on cultural facilities

i & fiCompensation & Benefits

• Merit Increases:o The FY13 budget includes an average 2% increase for salaries based on a pay for performance system

• Compensation Study:o The implementation of Phase 2 from the recent compensation and benefit study has been included in the FY13 budget.  Phase 2 is a modified implementation plan  that is proposed to take effect January 1, 2013

• Health Insurance:o Health insurance premiums were budgeted with a 10% increase based on preliminary figures

• Collective Bargaining:o Compensation and Benefit figures in the recommended budget are subject to collective bargaining agreements.

iFY13 ExpansionsFund Item/ Program Amount

General $0

Airport VERP upgrade for snow plow $2,875

Information Technology Services: Windows 7 conversion $30,000

Alarm management software (Police),  $23,000

Gasboy upgrade/conversion (Fleet) $60,000

Fleet Automatic paver (PW Operations) $95 000Fleet Automatic paver (PW Operations),  $95,000

Ford scan tool $3,000

Freon machine $4,000

Parks (all funds): Hallway & walkway lighting, fence capping, playground shade,  ADA lift and ramp

$67,216

Solid Waste Diversion expansion $87,500

Water Utilities Vacuum excavator $44,500

Toughbooks (ITS),  $7,000

TOTAL $424, 091

Budget Committee Recommendations• Amend the City Manger’s proposed budget as follows:y g p p g

Item Amount Totals

•Reduce Mayor & City Council(CC) Travel $25,000

•Eliminate Mayor & City Council:Eliminate Mayor & City Council:

• Telecommunications allowance 9,396

• Car allowance 20,400

• FICA/Medicare on allowances 8,510

Subtotal Mayor & CC expenses: $63,306

•Eliminate general fund (GF) transfer to Arts Council  76,672

•Eliminate GF transfer to Beautification Committee  $70,678

Subtotal GF transfers: $147,350

• Per City Attorney interpretation, the recommended adjustments to Mayor & City Council compensation would not be effective until the next term of office for that 

TOTAL AMENDMENT RECOMMENDED $210,656

councilmember’s position.  So, those reductions would not be effective for the FY13 budget year.

General Fund OverviewGeneral Fund Overview

FY12 FY13Recommended

Variance fromFY12 BudgetOrig Budget YE Projected Recommended FY12 BudgetOrig. Budget YE Projected

Revenues : $57,731,577 $56,685,223 $58,516,007 1.4%

Expenditures: -$58,311,420 -$57,892,069 -$59,436,976 1.9%

Operating Rev-Exp: -$579,843 -$1,206,846 -$920,969

One-Time:

Revenues $1,000,000 $1,000,000 $1,050,000, , , , , ,

Expenditures -$405,371 -$405,371

Final Rev-Exp $14,786 -$612,217 $129,031

General Fund Revenues by Typey ypFY13: $59,566,007

6%

Property Tax

Sales Tax

Other Taxes

Revenue SourceBudget

2012-2013

Property Tax $17,433,405Sales Tax 14 213 657

30% Franchise Tax

License, Permits & FeesFines & Forfeitures

Fees& User Charges

Sales Tax 14,213,657 Other Taxes 2,975,612 Franchise Tax 14,396,746 License, Permits & Fees 1,142,674 Fines & Forfeitures 1,389,414

24%5%

24%Fees & User Charges

Intergovernmental 

Interest

G & A

, ,Fees & User Charges 3,505,177 Intergovernmental 715,348 Interest 305,484 G & A 846,350

Miscellaneous Miscellaneous 1,732,139 Interfund Transfers 910,000 TOTAL $59,566,006

General Fund Expenditures by TypeGeneral Fund Expenditures by TypeFY13: $59,436,976

8% Personal Services Expenditure TypeBudget

2012-2013

4%

12%

Supplies

Other Services

Maintenance & Repairs

Utilities

Personal Services $41,998,727Commodities 2,901,753 Capital Outlay 33,000

71% Fuel

Capital Outlay

Transfers

Contractual Services 14,024,858 Debt Service 68 Interfund Transfers 478,570 TOTAL $59,436,976

General Fund Expenditures b Dby Department

5%

Police

Fire

33%

7%

9%PW Operations

PW Engineering

Finance

Administration

26%

12%

Codes

Planning

Law

Courts

FY12 FY13 Department Budget Requested $ %Police $19,043,736 $19,522,264 $478,528 2.6%Fire 15,595,990 15,696,172 $100,182 0.6%PW Operations 7 096 639 7 213 303 $116 664 1 7%

Chg from FY12 Budget

PW Operations 7,096,639 7,213,303 $116,664 1.7%Finance 4,941,443 5,448,339 $506,896 10.3%PW Engineering 3,690,710 4,090,005 $399,295 10.6%Administration 3,503,864 2,970,473 ($533,391) -15.0%Codes 1,424,374 1,472,518 $48,144 3.5%Planning 1,024,262 974,034 ($50,228) -4.9%Planning 1,024,262 974,034 ($50,228) 4.9%Law 1,173,735 1,198,193 $24,458 2.0%Courts 816,667 851,675 $35,008 4.3%Total $58,311,420 $59,436,976 $1,125,556 1.9%

General Fund 5 Year ModelGeneral Fund 5 Year Model

General Fund: 5-Year Revenue/Expense Model Moderate Revenue Growth

FY10 FY11 FY12 FY12 FY13 FY14 FY15 FY16 FY17Actual Actual Budget Projected Estimated Projected Projected Projected Projected

Revenues:Total operating revenues 57,560,029 58,266,035 57,731,577 56,685,224 58,516,006 60,212,887 61,754,818 63,601,749 65,508,865

Percent Change 4 29% 1 23% 0 92% 2 71% 1 36% 2 90% 2 56% 2 99% 3 00%

FY13 Budget Scenario: 2% Merit; Comp Adj in Jan.; Property Tax rollup; FY14: Phase 3 Comp Plan

Percent Change 4.29% 1.23% -0.92% -2.71% 1.36% 2.90% 2.56% 2.99% 3.00%Salaries/Total Revenues 66.38% 66.84% 70.21% 71.09% 70.39% 70.62% 70.66% 70.43% 70.02%

Expenditures:Total operating expenditures 53,450,634 54,715,461 58,390,532 57,892,069 58,629,526 60,160,253 61,629,362 63,146,468 64,592,058

Percent Change 0.51% 2.37% 6.72% 5.81% 0.41% 2.61% 2.44% 2.46% 2.29%

Revenues - Expenditures 4,109,395$ 3,550,573$ (658,955)$ (1,206,845)$ (113,520)$ 52,635$ 125,455$ 455,281$ 916,808$

Revenues - Expenditures 4,109,395$ 3,550,573$ (658,955)$ (1,206,845)$ (113,520)$ 52,635$ 125,455$ 455,281$ 916,808$ One-Time:

Revenues 0 0 1,000,000 1,000,000 1,050,000 1,300,000 300,000 0 0Expenditures 0 0 0 0 0 0 0 0 0

Exergonix 0 (1,405,280) 0 0 0 0 0 0 0Legal Settlement 0 (15,500,000) 0 0 0 0 0 0 0

ERP 0 (1 800 000) (405 371) (405 371) 0 0 0 0 0ERP 0 (1,800,000) (405,371) (405,371) 0 0 0 0 0

Rev - Exp (after one-time) 4,109,395$ (15,154,707)$ (64,326)$ (612,216)$ 936,480$ 1,352,635$ 425,455$ 455,281$ 916,808$

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

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

Ending fund balance as a % of expenditures (exc one-time) 51.12% 22.25% 20.74% 19.97% 21.31% 23.02% 23.16% 23.33% 24.22%

Summary of All FundsSummary of All FundsFY13 Expenditures: $177,609,567

ITS2%

Solid Waste2%

Airport5%

Budget Proposed2011-2012 2012-2013

General $58,311,420 $59,436,976Capital Projects 61 444 882 40 908 068

General34%Other Funds

2%

Fleet3%

2% 2% 5% Capital Projects 61,444,882 40,908,068 Water Utility 34,888,395 35,807,541 Debt Service 9,170,535 9,415,910 Parks & Recreation 7,639,894 7,700,036 Other Funds 3,306,622 2,957,533 Fleet Management 6 988 369 5 896 364

Parks Funds4%

Fleet Management 6,988,369 5,896,364 ITS 4,173,321 3,948,636 Solid Waste 2,890,573 3,203,130 Airport 7,307,218 8,335,373 TOTAL 196,121,229$ $177,609,567

Capital Projects23%

Water Utility20%

Debt Service5%

Summary of All FundsSummary of All FundsFY13 Revenues: $177,609,567

Property Tax21%Intergovernmental

5%

Interest1%

Accum. cap reserve7%

Budget Budget2011-2012 2012-2013

Other5%

Interfund Transfers6%

5%

Property Tax 36,160,081 37,494,294 Sales Tax 29,284,373 34,278,261 Fees & User Charges 44,388,105 49,188,241 Franchise Tax 15,430,308 14,396,746 Oth 11 066 856 9 181 900

Sales Tax19%

Franchise Tax8%

Other 11,066,856 9,181,900 Interfund Transfers 14,906,963 11,413,678 Intergovernmental 4,582,306 8,492,415 Interest 1,578,699 1,255,542 Revenue Subtotal 157,397,691 165,701,077

Fees & User Charges

28%

Accum. capital reserves 38,723,489 11,908,490 TOTAL 196,121,180$ 177,609,567$

Enterprise FundsEnterprise FundsFY13: $48,725,734

Harris Pk Rec CenterCenter,  

1,379,690 , 3%

Airport,  8,335,373 , 17%

Solid Waste,   3,203,130 , 7%

Water Utility,   35,807,541 , 73%

Budget Proposed2011-2012 2012-2013 Change

Enterprise Funds $ 46 398 122 $ 48 725 734 5 0%Enterprise Funds $ 46,398,122 $ 48,725,734 5.0%

Capital Project FundsCapital Project FundsFY13: $40,908,068

Parks and Recreation504 000

Public Safety340,000 

1%

Other1,053,016 

3%

Water Utilities15 335 873

Tax Increment Financing Districts

9,996,179 24%

504,000 1%

3%

15,335,873 38%

24%

Public Works13 679 000

Budget Proposed2011-2012 2012-2013 Change

Capital Improvement Budget $ 61,444,682 $40,908,068 -33.4%

13,679,000 33%

Special Revenue FundsSpecial Revenue FundsFY13: $7,105,512

Summit Woods TDD0%

Gamber Center6%Fiduciary Funds 0% 6%

LPCC27%

Summit Waves9%

VAWA1%

Fiduciary Funds 13%

Budget Proposed2011-2012 2012-2013

Summit Woods TDD $ 21,000 $ 21,000 Energy Efficiency Grant 265,996 ------Gamber Center 377 849 391 561

Parks and Rec 44% Gamber Center 377,849 391,561

Legacy Park Com. Ctr. 1,900,318 1,890,168 Parks and Rec 3,105,995 3,144,429 Summit Waves 628,367 655,752 VAWA Grant Fund 101,114 101,114 Fid i F d * 976 938 901 488Fiduciary Funds* 976,938 901,488

Total $7,377,577 $7,105,512

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

Debt Service FundsDebt Service FundsFY13: $9,415,910

Park COP32%

Debt Serv68%

Budget Proposed2011-2012 2012-2013 Change

City General Obligation $ 6 239 647 $ 6 439 647City General Obligation $ 6,239,647 $ 6,439,647

Park Certificate of Participation 2,930,888 2,976,263

Total $ 9,170,535 $ 9,415,910 2.7%

Internal Service FundsInternal Service FundsFY13: $12,017,367*

Workers Comp630,631 5% CBS5% CBS

1,275,908 11%

WU Eq Repl125,000 1%

ITS3 948 6363,948,636 

33%

Fleet5,896,364 

Budget Proposed2011-2012 2012-2013 Change

I t l S i F d $ 13 418 893 $ 12 017 367 10 4%

, ,49%

Internal Service Funds $ 13,418,893 $ 12,017,367 -10.4%

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

FY13 S All F dFY13 Summary – All Funds

$ %

Var iance f r om FY12 Budget

Fun d Typ e FY12

Bud g et FY13

Recom m en d ed $ % General $58,311,420 $59,436,976 1,125,556 1.9%

Cap it al Pro ject s 61,444,682 40,908,068 (20,536,614) -33.4%Special Revenue 7,377,577 7,105,512 (272,065) -3.7%

Fun d Typ e Bud g et Recom m en d ed

Deb t Service 9,170,535 9,415,910 245,375 2.7%En t erp r ise 46,398,122 48,725,734 2,327,612 5.0%

In t ernal Service 13,418,893 12,017,367 (1,401,526) -10.4%$ $TOTAL $196 ,121 ,229 $177 ,609 ,567 -$18,511,662 -9.4%

2012 Projected Property Tax Levy2012 Projected Property Tax Levy(within Lee’s Summit R‐7/Jackson County boundaries)

Total Proposed Levy: $8.9654 per $100 assessed valuationp y $ p $

Jackson County$0.5298 

Other*$0.7801 9%

6%

R‐7 School District

City of Lee's Summit$1.5505 17%

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

$6.1050 68%

iTax Levy Rate History

Calendar FY General P&R Debt Service Total City

2001 (FY02) 0.9600 0.1700 0.4800 1.6100$ 2002 (FY03) 0.9600 0.1700 0.4800 1.6100$ 2003 (FY04) 0.9057 0.1604 0.4800 1.5461$ 2004 (FY05) 0.9057 0.1604 0.4800 1.5461$ 2005 (FY06) 0.8900 0.1576 0.4800 1.5276$ 2006 (FY07) 0.8900 0.1576 0.4800 1.5276$ 2007 (FY08) 0.8690 0.1539 0.4697 1.4926$ 2008 (FY09) 0.8690 0.1539 0.4697 1.4926$ 2009 (FY10) 0.8690 0.1539 0.4697 1.4926$ 2010 (FY11) 0.8966 0.1595 0.4697 1.5258$ 2011 (FY12) 0.8966 0.1595 0.4697 1.5258$

Color KeyLevy Decrease

Voluntary Rollback

( )2012 (FY13) 0.9213 0.1595 0.4697 1.5505$

Levy IncreaseVoter approved rollup

General Fund Property Tax RateGeneral Fund Property Tax Rateper $100 of Assessed Valuation

2009 2010 2011* 2012** 2012***2009 2010 2011* 2012** 2012***Statutory Tax Rate Authorized

$.8837 $.8966 $.9213 $.9213 $.9401

Actual/PotentialTax Rate Levied

$.8690 $.8966 $.8966 $.9213 $.9401

Voluntary Reduction

($ .0147) none ($.0247) none (.0435)

Revenue Reduction

($243,290) $0 ($401,098) $0 ($692,267)

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

Questions?Q

Staff Recommended Council Action: 

i di ff d fA motion to direct staff to draft an ordinance approving the proposed Fiscal Year 2012 2013 annual budgetFiscal Year 2012‐2013 annual budget