2008 Proposed Budget“Bridging to a Bright Future”

July 9, 2007

1997 – 2007Consolidation of Wyandotte County/Kansas City, Kansas

A historical perspective of the last decade

• April 1, 1997 – voters approve consolidation of City and County Government by 60%

• May – September, 1997 – Transition period

• October 1, 1997 – New Unified Government Commission sworn in

The Economic Profile in 1997

• High property tax rates

• Property values declining/disinvestment

• High Unemployment rate

• Population declining

• Stagnant housing market

• Declining number of retail businesses and services

Ten years later - 2007

• City/County mill levy reduced by more than 26%

• County wide valuation has grown to more than $1.2 billion in 2006

• Population has stabilized

• New housing starts have reached an all time high placing us in the top 5 cities in the metropolitan area

A Decade of Successes

• STAR BOND Projects– Kansas Speedway– Village West

• New Residential Developments– Piper Estates– Whispering Ridge– New Market– Genesis Valley– Delaware Ridge– Delaware Highlands

• Redevelopment Projects– Mt. Carmel Redevelopment– Strawberry Hill Townhomes– Cathedral Point– Old City Hall Lofts– Reunion Homes– Mission Cliffs– Turner Hills– Escalade Heights– Melrose Gardens

AND MANY MORE…

“Residents are watching tax rates fall, long-dormant property values skyrocket and population stabilize amid the first new-housing boom in four decades”

Kevin Helliker

Wall Street Journal

December 22, 2006

The Bright Future of Wyandotte County

Getting Things Done…..

• Projects Underway– Schlitterbahn at 94th – 98th Street– Mid Town re-development along I-635– Prescott Plaza at 18th & I-70– Plaza at the Speedway - I-435 & Parallel– Voters overwhelmingly approved Casino

gaming in WYCO on June 26, 2007

UNIFIED GOVERNMENT GAMING AND SALES TAX REVENUES,ACTUAL AND FORECASTED, 2003 - 2013

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total City General Fund County General and EMS Funds Gaming-KCK

Assumptions: (1) Current sales tax revenues are forecasted to increase 2% on an annual basis. (2) The initial EMS sales tax revenues were received December 2004. In this forecast, EMS and County General Fund sales tax levels are projected at essentially the same level. (3) Plaza at Speedway revenues are projected to begin in 2009 reaching full development by 2011 with $300 million in annuual sales. In 2013 it is estimated that the STAR bonds will be retired and an additional $640 million in retail sales will be taxable.

Assuming KCK site.

‘It’s time for Cities and Counties around the metro to look at how they work things out in Wyandotte County”

-Wayne Godsey

President & CEO

June 24, 2007

Still much to do…many challenges ahead

• Continue to reduce mill levy

• Creating new job opportunities but must train and get the workers to the jobs

• Continue projects to re-build our existing neighborhoods throughout the city

• Provide additional recreational amenities and opportunities

2008 & 2009“The Bridge Years”

• Provide a stable financial bridge to future years with new and increased revenues

• 2008 should be the planning year in developing a long-term financial plan which thoughtfully balances tax relief and needed projects and services in light of new revenues on the near horizon

In the meantime…

From the Commission Retreat – June 8 & 9

• “Finish what we started”

• Given our limited staff resources and continuing financial challenges resulting from the loss of M & E tax, and loss of other state and federal dollars we will continue to successfully complete the many projects and initiatives underway

2007/2008 Funded Initiatives• Public Safety Initiatives

– Mid Town Patrol Division– SRO Demo Program with KCK in 2006/2007– SRO Program with Turner & Piper in 2007/2008– Created Law Enforcement Auditor position– Transferred fire dispatch to FD– Replace obsolete jail control system– Additional funding for Prisoner farm-out

• Quality of Government Initiative– Implemented Phase I of 3-1-1 project– Enhanced Code Enforcement Technology– Increased Public transportation – Increased Interpretation service– Increased Mowing frequency– Implemented Performance Measures

• County-wide Cooperation Initiative– Increase CIFI Capital Program including funding

for Bonner Springs & Edwardsville– Interlocal agreement for Casino revenue

sharing

• Quality of Life/Services Initiative– Increased Senior Citizen Utility Refund – Increased funding to NBR’s for additional

requests– Replaced State $ for Health Services– Increased Willa Gill Center Operations

Funding

• Economic & Community Development Initiatives

– Increased CVB Funding– Advanced City Wide Master Plan– Continue Neighborhood Revitalization

Program– Invest in Special Redevelopment opportunities– Enhance Development Review Process

• Employee issues– Provide for competitive salary increases for

both union and non union employees– Health Care cost increase in budget– Provides for continuation of new tuition

reimbursement and succession planning initiative

Proposed 2008 Highlights• 1.4% Mill Levy tax cut resulting in 1 mill reduction in City General Fund• Maintain current service levels and staffing despite request of > 70

positions. Excepting 10 public safety positions funded from other than General Fund

• Public Transportation adding a demonstration Sunday service component

• Economic Development evolution• Interoperable 2-way Radio System – conversion from 800 mHz• Enterprise Resource Planning System (ERP)• Computer Assisted Dispatch (CAD)• Facility Improvements

– Courthouse – 4th & 5th Floor Improvements– Mid Town – Patrol, NRC, Community Police– Fire maintenance facility relocation

• Curbside Recycling – Unlimited solid waste disposal and curbside recycling to every household – Most competitive rates in the Metro

City/County Price Recycling Other

Shawnee $20/Month Yes Bulk items - once yearlyYardwaste pickup

Overland Park $20/Month No $25 charge for special P/UYard waste pickup

Topeka/Shawnee County $14.11/Month No Bulk item pickup limitedYardwaste p/u w/limitations

Leavenworth $13.60/Month No Bulk items with regular P/UYard waste pick up

Olathe $12.95/Month No $15 charge for each white goodYard waste pickup Monday only)

Columbia, Mo. $12.92/Month Yes $10 charge for white goodsYard waste pickup

Lawrence $12.19/Month No Yard waste pickup (Monday only)

Unified Government $9.75/Month YesUnlimited curbside pickup (yard waste, bulk items and white items)

2 Bag Limit (strictly enforced)Kansas City, Mo. $6.86/Month Yes Bulk Items limited

Yard waste pickup 3x year***Telephone survey performed May 2007 Do you offer curbside recycling?

Do you have a white goods pickup?Do you pickup yard waste?

SOLID WASTE - RESIDENTIAL COLLECTION

Proposed

Why Curbside Recycling?• Responding to public expectations

– 90% people surveyed believe recycling is very important – 2005 MARC Survey

– Develop Strategy for Implementing the Service (Educating the Public)

• Closure of Forrest View Land Fill• Environmental Stewardship

– Community expectations have changed• Cost avoidance • Quality of Life

USD 50064.8 mills,

41%

State1.5 mills, 1%

City41.6 mills,

26%

County 30.4 mills, 19%

KCKCC 20.2 mills, 13%

Mill Levy Breakdown for USD 500 Resident(2006 Certified Mill Levy Rates)

UG 45%

Other 54%

Reserves 3%

Operating 80%

Debt Service 7%

Capital 10%

The 2008 Unified Government Annual Budget$296,180,997

All Funds

The Cost of the Unified GovernmentHow Your Dollars will be Spent in 2008

Public Works $0.21

Public Safety $0.39

Judicial Services $0.03

Debt Service $0.09

Community Services $0.20

Administration $0.08

TOTAL UNIFIED GOVERNMENT REVENUES PROPOSED BUDGET 2008

Fines/Fees - 2% $6,140,600

Reimbursements

Interest Income

Other Revenues, Tax Revenues -

59% $161,265,80

Intergovernment (Fed./State Grants)

Charges For Services - 13%

$35,846,700

TOTAL REVENUES = $274,056,100

Tax Revenue - 59%$161,265,803

Reimbursements - 1%$2,403,681

Intergovernment (Fed./State Grants) - 20%

$53,087,352

Interest Income - 2%$6,316,300

Other Revenues - 3%$8,995,664

TOTAL UNIFIED GOVERNMENT TAX REVENUES PROPOSED BUDGET 2008

Motor Vehicle Tax - 5% $8,236,768

Property Tax - 48%$76,742,146

Other Tax Revenue - 8% $13,394,389

Franchise Tax - 15% $24,413,000

Sales And Use24%$38,479,500

TOTAL TAX REVENUES = $161,265,803

Other Tax Revenue - 8%$13,394,389

Sales And Use Tax - 24%$38,479,500

UG Property Taxes for KCK Residents on a $100,000 Home

Kansas City, Kansas Rate $466.76Wyandotte County Rate $349.59 TOTAL $816.35

2007

$827.85

2006

$851.24

2005

$881.09

2008

$816.35

How One of Your 2007 Tax Dollars Is Spent for a Kansas City, Kansas Household in USD 500

$.26KCK

$.19WYCO

$.01KS

$.41USD #500

$.13KCKCC

Unified Government’sBudget Goals

• Growing the community• Reducing property tax rate• Diversifying Revenues• Mitigating impact of increased assessed

values on existing properties• Providing high quality responsive services• Maintaining Financial Stability

Growing the Community

TOTAL AND NON-RESIDENTIAL CONSTRUCTION VALUE KANSAS CITY, KANSAS, 2000 - 2006

$0

$50

$100

$150

$200

2000 2001 2002 2003 2004 2005 2006

Millions

Total Construction Value Non-Residential Construction Value

Growing the Community

Number of New Single-Family Residential Permits

136 145 147 161202

296

433476 494

466425

0

100

200

300

400

500

600

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

*

Year

Kansas City, Kansas 1997-2007

*Estimate

Growing the Community

5,815 5,871 6,0496,360

6,626 7,170 7,394 7,500

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2000 2001 2002 2003 2004 2005 2006 2007*

Business Licenses Issued

*Estimate

MITIGATING ASSESSED VALUE

UNIFIED GOVERNMENT GENERAL FUND PROPERTY TAX REVENUES, TOTAL CHANGES, COMPARISON TO ASSESSED VALUE GROWTH TRENDS, 2004-2008 BUDGETS

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2003 2004 2005 2006 2007 2008

Total Assessed Value Existing Value New Improvements Property Tax Revenue

PRIOR BUDGETS\2006 Amended, 2007 Budget\Graphs\[Assessed Value Tax Comparison.xls

Diversifying Revenues

$0

$10,000

$20,000

$30,000

$40,000

2000 2001 2002 2003 2004 2005 2006

Thousands

Year

Total Sales Tax Collections*, 2000-2006

*Includes compensating use tax collections

Reducing the Tax Rate

City and County Mill Levies: 1996 - 2008

0

20

40

60

80

100

Budget Year

Mil

l L

evy

County 32.784 31.255 27.526 25.725 24.255 24.190 36.228 36.335 32.693 32.664 31.279 30.399 30.399

City 64.220 62.116 58.439 55.927 52.237 53.555 48.847 48.925 46.449 43.952 42.742 41.588 40.588

Total 97.004 93.371 85.965 81.652 76.492 77.745 85.075 85.26 79.142 76.616 74.021 71.987 70.987

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

budget\2007 Amended, 2008 Budget\Graphs\CityCountyTaxRates.xls

97

71

* Sales tax revenues include the EMS Fund transfer to City General Fund beginning in 2005.

** In 2008, the following funds are added to the County General Fund: Appraisers, Extension and Motor Vehicle.

Property Tax Sales Tax Franchise Tax Other Revenues Total Revenues

2003 $44.3 $25.9 $19.8 $39.1 $128.9

2004 $44.8 $25.5 $20.7 $43.0 $134.1

2005 $47.0 $28.9 $22.1 $43.1 $141.1

2006 $47.0 $29.9 $24.8 $45.9 $147.7

2007 $48.2 $30.0 $24.0 $44.6 $146.8

2008 $52.6 $30.6 $24.4 $47.4 $155.0

% Chg. 03-08 18.80% 18.22% 23.55% 21.40% 20.23%

TOTAL CITY AND COUNTY GENERAL FUND REVENUES (In $ Millions)

COMBINED GENERAL FUND, REVENUE TRENDS, UNIFIED GOVERNMENT 2003 - 2008

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

2003 2004 2005 2006 2007 2008

Property Tax Sales Tax Franchise Tax Other Revenues

Revenues(In $ Millions)

At the Ten Year Anniversary of Consolidation…

• The combined mill levy (city & county) has decreased by 26%• The County’s population in the 2000’s has stabilized compared

to a population loss of 8% thru the 1980’s and 1990’s• New single family building permits have increased by nearly

250%– the previous 10-year period saw a slowing of new single-

family permits (20% reduction)– Kansas City, KS ranks 5th among metro area city and

counties in total number of single family building permits (2007 thru May)

• Retail sales for the County have increased by 56%• Assessed valuation for the County exceeded $1billion for the first

time. Disinvestment has been replaced by substantial investment and speculation– assessed valuation increased by 89% since consolidation

• From 1998 to 2006 licenses issued to new businesses have increased by 46% (an increase of 2,331 businesses over this period)

Budget Calendar

May 17 7pm 1st Budget Public HearingJuly 9 5pm Proposed Budget to BOCJuly 10 4pm Budget Work Session Intro/MML/CMIPJuly 11 4pm Budget Work Session CMIP & CDBGJuly 12 4pm Budget Work Session CMIP/Set MMLJuly 16 4pm Budget Work Session Operating

BudgetJuly 19 5pm Budget Work Session Operating

BudgetJuly 23 5pm *Budget Work SessionJuly 26 5pm *Budget Work SessionJuly 30 7pm 2nd Budget Public HearingAugust 2 7pm Budget Adoption

*If neededBUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM

“Wyandotte County…through local cooperation…is becoming a county that others envy” -Wayne Godsey

President & GM

June 24, 2007

2008 Proposed Budget“Bridging to a Bright Future”

July 9, 2007