City of Lee’s Summit, Missouri Fiscal Year Budget June 7, 2012

Budget Approach Top Priorities Funded in the FY13 Budget: – Public safety – Public infrastructure – Economic development – Customer service Guiding Factors – 5 year financial forecast – Fund balance policy Purpose of the budget is to serve as the financial guide, evaluate past priorities, communicate with citizens, and develop performance measures (GFOA Budget Objectives)

Budget Process * 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. Financial Analysis December 2011FY12 mid-year projections due February 2012Review of general fund budget scenarios Budget Review and Adoption March 12Presentation of City Manager's FY13 general fund budget to Budget Committee begins* May 14 & 29Televised budget presentations from departments June 7Public hearing June 21Budget adoption New fiscal year begins: July 1

General Fund: Fund Balance FY13FY14FY15FY16FY17 Beg. 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.

General Fund: FY13 Budget Highlights 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 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 upgrades Performance Excellence: Organizational Business Plan Arts and Culture: Bond election on cultural facilities

Compensation & 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.

FY13 Expansions FundItem/ ProgramAmount General$0 AirportVERP 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 FleetAutomatic 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 WasteDiversion expansion$87,500 Water UtilitiesVacuum excavator$44,500 Toughbooks (ITS),$7,000 TOTAL$424, 091

Budget Committee Recommendations Amend the City Manger’s proposed budget as follows: Per City Attorney interpretation, the recommended adjustments to Mayor & City Council compensation would not be effective until the next term of office for that councilmember’s position. So, those reductions would not be effective for the FY13 budget year. ItemAmountTotals Reduce Mayor & City Council(CC) Travel$25,000 Eliminate Mayor & City Council: Telecommunications allowance9,396 Car allowance20,400 FICA/Medicare on allowances8,510 Subtotal Mayor & CC expenses:$63,306 Eliminate general fund (GF) transfer to Arts Council76,672 Eliminate GF transfer to Beautification Committee$70,678 Subtotal GF transfers:$147,350 TOTAL AMENDMENT RECOMMENDED$210,656

General Fund Overview

General Fund Revenues by Type FY13: $59,566,007

General Fund Expenditures by Type FY13: $59,436,976

General Fund Expenditures by Department

General Fund 5 Year Model

Summary of All Funds FY13 Expenditures: $177,609,567

Summary of All Funds FY13 Revenues: $177,609,567

Enterprise Funds FY13: $48,725,734 BudgetProposed Change Enterprise Funds $ 46,398,122 $ 48,725,7345.0%

Capital Project Funds FY13: $40,908,068 BudgetProposed Change Capital Improvement Budget $ 61,444,682 $40,908, %

Special Revenue Funds FY13: $7,105,512 BudgetProposed Summit Woods TDD $ 21,000 Energy Efficiency Grant 265, Gamber Center 377,849391,561 Legacy Park Com. Ctr. 1,900,318 1,890,168 Parks and Rec 3,105,9953,144,429 Summit Waves 628,367655,752 VAWA Grant Fund 101,114 Fiduciary Funds*976,938901,488 Total $7,377,577 $7,105,512 *Fiduciary funds include: Cemetery, B&I, and CDBG.

Debt Service Funds FY13: $9,415,910 BudgetProposed Change City General Obligation $ 6,239,647 $ 6,439,647 Park Certificate of Participation2,930,888 2,976,263 Total$ 9,170,535$ 9,415,9102.7%

Internal Service Funds FY13: $12,017,367* BudgetProposed Change Internal Service Funds $ 13,418,893 $ 12,017, % *Funds not detailed in graph: Unemployment Trust, Short-Term Disability, and Insurance Trust.

FY13 Summary – All Funds

2012 Projected Property Tax Levy (within Lee’s Summit R-7/Jackson County boundaries) Total Proposed Levy: $ per $100 assessed valuation *Other= Jr. College, Library, Mental Health, Handicap Workshop, and Mo Blind Pension

Tax Levy Rate History

General Fund Property Tax Rate per $100 of Assessed Valuation *2012**2012*** Statutory Tax Rate Authorized $.8837$.8966$.9213 $.9401 Actual/ Potential Tax Rate Levied $.8690$.8966 $.9401 Voluntary Reduction ($.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? Staff Recommended Council Action: A motion to direct staff to draft an ordinance adopting the proposed Fiscal Year annual budget