Unified Government of Wyandotte County/Kansas City Kansas

Proposed 2009 BudgetJuly 10, 2008

Skyrocketing gas pricesRecord number foreclosuresDecreasing home valuesRising unemploymentSlower consumer spending

Loss of Machinery & Equipment Tax Halt of State Demand Transfer Revenues Reductions in State & Federal Funding Additional State & Federal Mandates

◦Separation of combined sewer systems◦Environmental requirements◦Criminal Justice Issues

Slowing of revenuesProperty valuations Record fuel prices Increasing operational costs Impact of property tax appeals Harsh winter storm expenses

Reduce property tax rate Diversify revenues Provide high quality responsive services Maintain financial stability Positioning the community and organization for future upswing in the economy

This 2009 proposed budget recommends a cut of $250,000 in tax revenues or .23 mill decrease in property tax rates

◦ This decrease represents a symbolic commitment to ongoing and future property tax relief

◦ Property tax relief continues to be a key for future growth in sustained development of our community

◦ Reduce reliance on property tax and diversify our revenues

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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 30.539 30.539

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 40.685 40.455

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 71.224 70.994

0

20

40

60

80

100

Mill

Le

vy

Budget Year

City and County Mill Levies: 1996 - 2009

97

70

Freeze hiring of new employees◦ Exceptions: Police officers,

Firefighters/Paramedics, Dispatchers, Bus Drivers & Detention Officers

Freeze capital projects and equipment purchase◦ Exceptions: Grant funded projects, essential

maintenance to protect health & safety

Suspend the County CiFi capital projects revenue sharing program to Bonner Springs, Edwardsville and KCK

◦ For 2009 the remaining CiFi fund balance of $148,400, will be distributed to each of the three cities in equal amounts of $49,000 and the remaining $1400 to Lake Quivira

◦ Restoration of the CiFi Program may be considered at some future date as economic conditions improve

Encourage across the board cost cutting efforts throughout departments. Targets have been set in specific areas such as:

◦ Reduce outside legal counsel by 25%

◦ Reduce consultant fees by 25%

◦ Cut office supply purchases by 10%

◦ Suspend sick leave buy back program for employees in 2008 and 2009

Major EnhancementsoEstablish Storm Water Utilityo Increase BPU PILOT (Payment In-Lieu of Tax)

OtheroAccelerate collections on unpaid tickets, i.e.

Amnesty programo Increase traffic finesoRestructure XSPAND delinquent tax contractoCredit card transaction feeso Jail booking fees

Initiate much needed Storm Water Management program through establishing the storm water utility

Beginning in 2009 a $2.00 per month fee would be assessed to residential, commercial, industrial and institutional users except those in Fairfax Drainage District

Future consideration will be given to a graduated scale for commercial, industrial and institutional users who contribute substantially to storm water issues

Charter ordinance sets out that the BPU PILOT (Payment-In Lieu of Tax) payment to the City of Kansas City, Kansas will be between 5% and 15%

Current PILOT fee is set at 7.9%; this proposed budget would increase BPU PILOT to 9.9% beginning in January 2009

Increase in PILOT requires a joint meeting for Commissioners and the Board of Public Utilities prior to approval of proposed increase

Based upon water and electric charges of $100 per month, this increase would result in an estimated impact to the average BPU rate payer of $2.00 per month

UG proposes to phase in compensation to the BPU for the cost of billing services for WPC, RTC and SWM enterprise funds

Honor labor contracts

Honor commitments to non-union personnel◦ COLA on target for July 2008◦ Merit increases scheduled for April 2009

The budget allows for essential hires such as:◦ Police Officers◦ Firefighters/Paramedics◦ Detention Officers◦ Transit Operators◦ Other essential positions

Capital◦ Complete projects already started◦ Continue grant funded projects that require local

match

Explore Potential New Initiatives for the workplace◦ Early retirement package◦ Work from home program◦ Research 4 day 10 hour work week◦ Voluntary unpaid leave program◦ Expand employee health insurance opt out program

Impacts may save dollars and motivate employees

Consolidation of Parks and Recreation Mill Levies into single fund – no dollar impact but will streamline and improve delivery of park services and maintenance

Commit to quality services with fewer people and resources

Organization will become leaner but more efficient

Reduction of costs throughout organization

Service response may suffer ◦ Maintaining services with less people will be a challenge◦ Response to complaints and service requests may be

delayed◦ Projects not completed as quickly◦ Increase demand on employee performance◦ Increased constituent complaints

Status of Economy may force more cuts◦ Further cuts may be required mid-year or in the proposed 2010 budget

39.87 39.796

42.914 42.55444.399 44.417 44.462

37.375 37.056 37.226 36.897

38.769

42.57 42.637

23.982

24.068 25.438 25.07826.959 26.838 26.817

60.128 60.621 60.722 60.591 60.656

63.268 63.312

73.039

73.863

76.26774.482

72.503

72.666 74.119

41.032 40.984 41.2340.973

42.84542.792 43.015

95.438

95.21295.556

93.184

88.196

80.359 80.188

85.075 85.260

79.142

76.616

74.021

71.98771.224

20.000

40.000

60.000

80.000

100.000

2002 2003 2004 2005 2006 2007 2008

Mill

s

Lvnwrth Co. (Lvnwrth)

Wyandotte Co. (KCK)

Johnson Co. (Lenexa)

Johnson Co. (Shawnee)

City + County Mill Levy Comparison1

Tax Rates for Kansas Cities of the First Class, Fiscal Years 2002 - 2008

Note: Shown on this graph are select entities and associated city/county mill levies for comparison with Wyandotte County & Kansas City combined mill levies.

Source: Kansas Govt. Journal Tax Rate Books, 2002 thru 2008; additional mill levy information from respective counties/citie s.

1City and county mill levy rates are for that jurisdiction only and represents only a portion of a residents tax bill.

Shawnee Co. (Topeka)

Sedgwick Co. (Wichita)

Johnson Co. (Overland Park)

Johnson Co. (Olathe)

Topeka/Shawnee Co.

KCK / WYCO

Johnson Co. (Shawnee)

Johnson Co. (Olathe)

Johnson Co. (Lenexa)

V:\Tax Rate and Valuation\[mill levy comparisons wyco kck versus other highest cities_TO MAYOR REVISED_MAY 2008.xls

Reserves 3%

Operating 80%

Debt Service 7%

Capital 10%

The 2009 Unified Government Annual Budget - $259.1* Million

All Funds

* Not including grants

City40.7 mills,

26%

County 30.5 mills, 19%

KCKCC 19.5 mills, 13%

USD 50063.4 mills,

41%

State1.5 mills, 1%

Mill Levy Breakdown for USD 500 Resident(2007 Certified Mill Levy Rates)

UG 45%

Other 55%

2009 UNIFIED GOVERNMENT BUDGET

Property Tax$78,342,413

30%

Sales Tax$39,219,930

15%

Franchise Tax$30,076,000

12%

Other Taxes$22,209,602

9%

Charges for Service

$37,879,00015%

Intergovt. Revenues

$11,556,4304%

Interest Income$3,378,000

1%

Fines/Fees$6,977,300

3%

Reimbursements$3,637,414

1%

Fund Balance$9,221,525

4%

Other$16,583,876

6%

SOURCES OF SUPPORT

TOTAL = $259,081,490

$0.08

$0.03

$0.09

$0.39

$0.21

$0.20

EXPENDITURES

TOTAL = $259,081,490(Does not include the County Library Fund)

Administration

Community Service

Public Works

Public Safety

Debt Service

Judicial Services

Diversifying Revenues

$0

$10,000

$20,000

$30,000

$40,000

2000 2001 2002 2003 2004 2005 2006 2007

Thousands

Year

Total Sales Tax Collections*, 2000-2007

*Includes compensating use tax collections

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

2003 2004 2005 2006 2007 2008 2009

COMBINED GENERAL FUND, REVENUE TRENDS,UNIFIED GOVERNMENT 2003 - 2009

Property Tax Sales & Use Tax Franchise Tax Other Revenues

Revenues(In $ Millions)

* 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.

** In 2009, the following funds are added to the County General Fund: Arts, Fair, Historical Museum and Soil.

Property Tax Sales & Use Tax Franchise Tax Other Revenues Total Revenues

2003 $44.3 $25.9 $19.8 $37.4 $128.9

2004 $44.8 $25.5 $20.7 $38.3 $134.1

2005 $47.0 $33.7 $22.1 $38.3 $141.1

2006 $47.0 $34.9 $24.8 $40.9 $147.7

2007 $48.3 $36.2 $23.8 $41.1 $149.4

2008 $52.0 $36.3 $24.1 $47.8 $160.2

2009 $54.4 $37.7 $29.5 $48.8 $170.4

% Chg. 03-09 22.82% 45.51% 49.28% 30.53% 32.14%

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

Public Safety Initiatives◦ Mid Town Patrol Division ◦ School Resource Officer Program ◦ Night COPPS Unit◦ Night Light Officer◦ Vice Unit

Economic & Community Development Initiatives◦ CVB Funding Increased◦ City-Wide Master Plan◦ Neighborhood Revitalization

Program◦ One-stop Shop for Planning &

Permitting◦ Urban Housing Project

Quality of Life/Services Initiative◦ Reduced Property Tax Rate◦ Senior Citizen Utility Refund ◦ NBR Funding ◦ Curbside Recycling Program

Quality of Government Initiatives◦ 3-1-1 Customer Service

Program◦ Code Enforcement Efficiency◦ Sunday Bus Service◦ Performance Measures

Destination Casino Resort Woodlands Racino Schlitterbahn Vacation Village Plaza at the Speedway Prescott Plaza Village West STAR Bond Retirement Downtown Office Building Midtown Redevelopment

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

UNIFIED GOVERNMENT SALES AND GAMING-RELATED REVENUES,ACTUAL AND FORECASTED, 2003 - 2013, "AVERAGE CASINO PROPOSAL"

Total Revenues (8/07) City General Fund Gaming-KCK (8/07)

Total Revenues (12/07) County General and EMS Funds Gaming-KCK (12/07)

Assumptions: (1) Current sales tax revenues are forecasted to increase 2% on an annual basis. (2) The initial EMS sales tax revenues werereceived 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 annual sales. In 2013 it is estimated that the STAR bonds will be retired and an additional $640 million in retail sales will be taxable.

Gaming-related revenues include: gaming, sales, property and guest tax revenues.

….When something like this happens, companies and government agencies are often criticized…not this time, and the credit has to go to…. the company and Fire Department….it was a text book example of how crisis management should work. -Wayne Godsey

President & General Manager

May 1 7pm 1st Budget Public HearingJuly 10 5pm Budget Work Session/Public CommentJuly 17 5pm Budget Work SessionJuly 21 7pm *Budget Work SessionJuly 24 5pm Budget Work SessionJuly 28 7pm *Budget Work SessionJuly 31 5pm 2nd Budget Public HearingJuly 31 7pm Adopt Budget & CDBG Consolidated Plan

BUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM

*Budget Work Session to be held immediately following Standing Committee meetings