Fiscal Year Budget Public Hearing June 4, 2009

Budget Approach Budget Priorities Budget Priorities Based on the 2007 City Council Survey Results Based on the 2007 City Council Survey Results Economy Economy Decreased Property Values Decreased Property Values Flat Sales Tax growth Flat Sales Tax growth Reduced Building Permit Activity Reduced Building Permit Activity Guiding Factors Guiding Factors 3-Year Financial Forecast 3-Year Financial Forecast Fund Balance Policy Fund Balance Policy The budget is a financial guide that is also used to evaluate past priorities, communicate with citizens and measure performance (GFOA Budget Objectives) The budget is a financial guide that is also used to evaluate past priorities, communicate with citizens and measure performance (GFOA Budget Objectives)

Budget Process Budget Process Financial Analysis Financial Analysis Fiscal Year year-end revenue and expense projection review Fiscal Year year-end revenue and expense projection review Fiscal Year revenue projections Fiscal Year revenue projections 3-Year Financial Forecast development 3-Year Financial Forecast development Departmental Budget Development Departmental Budget Development Cost containment implementation Cost containment implementation Mission-critical expansion request review Mission-critical expansion request review Budget Review and Adoption Budget Review and Adoption Finance & Personnel Committee review - February to May Finance & Personnel Committee review - February to May Public Hearing - June 4 Public Hearing - June 4 Council follow-up - June 11 Council follow-up - June 11 Budget adoption - June 18 Budget adoption - June 18 New Fiscal Year Begins – July 1 New Fiscal Year Begins – July 1

City Council Budget Priorities Public Safety Public Safety Second year of four-year plan to add 21 Police Officers Second year of four-year plan to add 21 Police Officers Storm Water Control Storm Water Control $15.4 million bond issue projects are underway $15.4 million bond issue projects are underway Sewer Maintenance (Inflow &Infiltration Reduction) Sewer Maintenance (Inflow &Infiltration Reduction) Funded by Water & Sewer Utility Fees Funded by Water & Sewer Utility Fees

City Council Budget Priorities Pavement Management Services Pavement Management Services Crack Seal Program implemented Crack Seal Program implemented Code Enforcement & Property Maintenance Code Enforcement & Property Maintenance Re-assigned Building Inspector to Neighborhood Services Officer Re-assigned Building Inspector to Neighborhood Services Officer

Budget Accomplishments Zero-based Budgeting Zero-based Budgeting Administration, Purchasing, Human Resources, Fleet, Information Technology Services, Central Building Services, and Finance Administration, Purchasing, Human Resources, Fleet, Information Technology Services, Central Building Services, and Finance Cost Containment Cost Containment Evaluate vacant positions Evaluate vacant positions 6.5 full-time equivalents on hold 6.5 full-time equivalents on hold Defer consultant studies Defer consultant studies Without Public Safety expansions, Fiscal Year General Fund expenditures reflect a $137,053 decrease from the Fiscal Year budget. Without Public Safety expansions, Fiscal Year General Fund expenditures reflect a $137,053 decrease from the Fiscal Year budget.

Summary of All Funds Total Budget $171,723,220

General Fund Expenditures $55,691,584

Special Revenue Funds $6,016,326

Debt Service Funds $9,141,668

Capital Project Funds $48,908,939

Enterprise Funds $40,304,826

Internal Service Funds $10,306,660

Trust & Agency Funds $1,353,217

General Fund Revenue Projections FY 07-08FY FY Revenues:ActualBudgetProjectedBudget Property Tax $15,852,674 $16,713,335 $16,653,810 $16,323,691 Sales Tax 12,395,589 12,047,648 12,523,762 12,476,723 EATS (1,316,622) (1,322,213) (1,162,894) (1,290,008) Franchise Tax 14,662,791 12,246,959 12,674,396 12,794,396 Cigarette Tax 426, , , ,475 Motor Vehicle Tax 2,814,276 2,953,685 2,626,689 2,490,638 Intergovernmental 872,879 1,002, ,172 Charges for Services 3,463,853 3,058,865 3,335,712 3,410,712 Licenses and permits 1,941,625 2,164,855 1,450,778 1,179,870 Fines and Forfeitures 1,587,744 1,627,588 1,524,274 Interest 947, , , ,493 Other 1,619,827 1,919,038 1,477,210 Transfers In 2,259,410 2,904,668 2,867,2573,764,085 Total Revenues $57,527,397 $ 56,363,840 $56,322,491 $55,957,731 $ Change (Year-Year)(1,163,557)(1,204,906)(364,760) % Change (Year-Year)-2.02%-2.09%-0.65%

General Fund Revenues $55,957,731

2008 Property Tax Levy: Lee’s Summit R-7 School District (within Lee's Summit/Jackson County Boundaries) Total Levy: $ per $100 assessed valuation * Includes Metropolitan Community College, Mid-Continent Library, Board of Disabled Services, Mental Health, and State Blind Pension

General Fund Expenditures Expenditures: FY Budget FY Proposed Personal Services$38,606,974 $ 39,262,961 Commodities2,177,540 2,349,228 Contractual Services7,176,258 7,113,770 Maintenance and Repairs3,924,820 4,269,709 Utilities & Fuel2,050,871 2,198,126 Capital Outlay560,503 82,957 Operating Transfers Out758,851414,833 Total Expenditures$55,255,817 $ 55,691,584 $ Change435,767 % Change0.79%

General Fund Expenditures $55,691,584

General Fund Balance Three-Year Financial Forecast FY 08-09FY 09-10FY 10-11FY 11-12FY Projected Total Revenues 56,322,49155,957,73157,219,040 59,218,906 60,857,072 Total Expenditures 54,431,303 55,691,584 57,259,062 60,490,251 61,969,213 Revenues Over/(Under) Expenditures $ 1,891,188 $ 266,147 $ (40,021) $ (1,271,346) $ (1,112,141) Fund balances—beginning $ 21,201,763 $ 23,092,951$ 23,359,098 $ 23,319,077 $ 22,047,731 Fund balances—ending $ 23,092,951 $ 23,359,098 $ 23,319,077$ 22,047,731 $ 20,935,589 Ending fund balance as a % of expenditures42.43%41.94%40.73%36.45%33.78%

Personnel Expansions General Fund Only Position#Department FY Court Security Officer0.75Municipal Court $ 19,500 Police Officer7.00Police $ 501,375 Communications Specialist1.00Police $ 51,945 Administrative Reassignments0.00Administration$ 0 Total8.75 $ 572,820

Other Expansions General Fund Fleet: $22,267 Fleet: $22,267 Information Technology Services: $165,879 Information Technology Services: $165,879 Request for Proposal (RFP) Project for Enterprise Resource Planning (ERP): $77,305 Request for Proposal (RFP) Project for Enterprise Resource Planning (ERP): $77,305 Total All General Fund Expansions: $838,271

Future Discussion Issues For Fiscal Year Review of Airport Business PlanReview of Airport Business Plan Live broadcasts of the Planning Commission meetingsLive broadcasts of the Planning Commission meetings Consolidation of City Hall office spaceConsolidation of City Hall office space

Future Funding Needs: 2010 Bond Election Enterprise Resource Planning (ERP) Software Enterprise Resource Planning (ERP) Software Police/Fire Radio System Replacement Police/Fire Radio System Replacement Storm Water Utility Storm Water Utility Police Firing Range Police Firing Range Water Operations/Service Center Water Operations/Service Center Cultural Arts Center Cultural Arts Center Streetlight Purchase Streetlight Purchase Sidewalk Improvements Sidewalk Improvements

Questions? Council Action: motion to direct staff to draft an ordinance