1. City of Kenner-Proposed Millage Election Saturday, April 2, 2011

2. April 2, 2011 Millage Election Information
Kenner residents are being asked to consider the following:
1.14 mills-Sewerage
10 year 1.14 mill tax renewal
2.40mills-Garbage Collection and Disposal
10 year tax renewal and increase from the current rate of 1.61 mills to the previously authorized maximum rate of 2.40 mills
8 mills-Police Department Operations
10 year 8-mill tax for salaries and benefits of the police department personnel
4 mills-Police Department Buildings & Equipment
10 year 4 mill tax
11.4 mills-Fire Department Operations
10 year tax renewal and increase to mills from the previously authorized maximum rate of mills and the current adjusted rate of 7.40 mills
2 mills-Fire Department Buildings and Equipment
10 year 2 mill tax
All revenues provided by these millages will stay in the City of Kenner to maintain police, fire, garbage collection and disposal and sewerage services
11/8/2018

3. Kenner has relied too heavily on sales tax & gaming revenue
Property Tax
PROPERTY TAX IS A MORE STABLE & RELIABLE FUNDING SOURCE
11/8/2018

4. Why is Kenner asking its residents for consideration?
Kenner’s heavy reliance upon sales tax is not sufficient as a result of the economic recession, competition with surrounding business and retailers outside of Kenner, and the rising popularity of online shopping
If forced to eliminate more positions, it will be impossible to provide the same level of services to the residents
In continuing to use capital funding to remedy the deficit of the operating budget, Kenner will continue to struggle to maintain status quo operations, and remain incapable of progress
11/8/2018

5. What We’ve Done to Cut Costs
Among the steps taken to reduce more than 5.1 million in expenditures are:
Eliminated 81 positions
Imposed a pay freeze
City employees and police officers have received no raises in two (2) years
Transferred 2.5 million dollars of dedicated capital funds to operations to remedy budget deficit
Drastically reduced all departmental budget line items to a “bare bones” budget
Eliminated 16 take-home vehicles
Reduced janitorial services for all City buildings
11/8/2018

6. What We’ve Done to Cut Costs
Among the steps taken to reduce more than 5.1 million in expenditures are:
Reduced employee benefits
(i.e. long & short term disability plans)
Eliminated costly and inefficient city contracts
(i.e.-secured a new telecommunications contract with purchased equipment; cancelled costly leasing contract)
Transitioned Rivertown museums to “by appointment only” usage
Eliminated tourist center
Eliminated the Help Line
Reduced advertising expenses
Reduced payments to the Rivertown Theater Guild
Reduced overtime citywide
Especially the Fire Department, which resulted in closing the rescue squad on certain days
11/8/2018

7. Comparing millage rates for lA/MS municipalities
City
Kenner
Gretna
Alex-
andria
Slidell
Gulfport
Bossier City
Biloxi
Population
70,517
17,423
46,342
25,695
71,127
56,461
50,644
Millages
18.13
43.98
20.23
27.82
34.00
21.69
30.10
Comparing Kenner’s millages to the millages of other cities is an inaccurate basis of comparison
Many municipalities are responsible for providing services to their residents that others are not
Often the Parish government handles many services for municipalities, leaving the municipality requiring less millages to operate
11/8/2018

8. Making an accurate comparison Kenner, LA vs. Lake Charles, LA
Making an accurate comparison of Kenner to another municipality requires an in-depth case study
We chose Lake Charles, LA as our comparison city as references have been made to Lake Charles, LA’s capability to operate on mills with a population of 71,757.
City
Population
Millages
Kenner
70,517
18.13
Lake Charles
71,757
15.35
11/8/2018

9. The gaming industries Kenner, LA vs. Lake Charles, LA
Treasure Chest Casino, Kenner, LA
L’auberge Du Lac Resort Casino Lake Charles, LA
11/8/2018

10. The gaming industries Kenner, LA vs. Lake Charles, LA
Revenue projections for the Fiscal Year
Lake Charles Casinos-$8.8 million
Treasure Chest Casino-$4.6 million, 48% less
The City of Lake Charles receives gaming revenue from the following entities: L’auberge Du Lac, Grand Palais, Isle of Capri, and Delta Downs
78% of Calcasieu Parish’s gaming revenue is allotted to City & Parish as follows:
Reserve for small cities-$1,000,000.00
Remaining funds evenly divided-50% to Calcasieu Parish and 50% to Lake Charles
Not only does the City of Lake Charles receive its own share of gaming revenue, but the portion of revenue allotted to Calcasieu Parish funds many citizen services, including services for residents of the City of Lake Charles
11/8/2018

11. Sales Tax & funding facts Kenner, LA vs. Lake Charles, LA
The City of Lake Charles sales tax revenues for Fiscal Year $41,248,000.
The City of Kenner sales tax revenues for Fiscal Year $28,712,000.00
Sales Tax revenues are $12,536, or 44% higher in the City of Lake Charles
The fund balance for the City of Lake Charles has been depleted over the past three (3) years from $32,110,080 to 16,708,178, a staggering decrease of $15,401,902 or 48%.
Funds for capital projects has been decreased from approximately $16 million to $10 million
11/8/2018

12. Facts regarding the financial state of lake Charles
The following are comments from Mayor Randy Roach in his budgetary address for Fiscal Year :
“As you know we will end our current fiscal year (FY ) with approximately a $4 million operating deficit for the first time in many years. The proposed budget projects an additional deficit for the next budget year of approximately $5 million….That means we have to base our operational plans on the assumption that revenues will not increase to a point where we would be able to completely eliminate an operating deficit for at least the next two budget years.”
“In summary, the City of Lake Charles is fortunate to have adequate fund balance reserves to help cover current and projected year’s deficits. However, the City cannot rely on the General Fund reserves to sustain operations into future years.”
11/8/2018

13. Case study of Kenner, la vs. lake Charles, la In Summary
Lake Charles Police Budget
City of Kenner Police Department Budget
Lake Charles Fire Department Budget
City of Kenner Fire Department Budget
$16,521,630.00
$16,059,774.00
$13,357,433.00
$6,913,361.00
11/8/2018

14. What do Kenner Residents pay vs. other Jefferson parish residents
Millages to Jefferson Parish-64.46
Millages to the City of Kenner-18.13
Total Millages Paid= 82.59
Metairie Resident
Millages to Jefferson Parish
Total Millages Paid=
Gretna Resident*
Millages to Jefferson Parish-62.55
Millages to the City of Gretna-43.98
Total Millages Paid=
* Unlike Kenner, the City of Gretna does not enjoy a municipal homestead exemption.
11/8/2018

15. 10 year analysis Kenner’s Revenues vs. expenses
*Budgeted figures
Kenner’s revenues have been flat, while costs continue to rise; Kenner is continuously cutting to keep expenditures in line with revenues
Over the course of ten (10) years, there has been revenue growth of 2.5%, while consumer price index has increased 26%.
11/8/2018

16. WHAT would THIS INCREASE cost kenner’s RESIDENTS?
Households with a home assessed at a value of $75, or less will remain tax exempt
Household with a home assessed at a value of $150,000.00
Increase of $ per year or $11.75 per month
Household with a home assessed at a value of $250,000.00
Increase of $ per year or $27.41 per month
11/8/2018

17. City of Kenner sewer department millage renewal

18. What the sewerage renewal means to you
Renewal of an existing property tax
Provides funding for our overall sewerage system
REMINDER: The City of Kenner is still under a Consolidated Compliance Order and Notice of Potential Penalty Enforcement
Presents a threat of significant civil fines
Possible fines of $50,000 per day of continued violation or noncompliance
11/8/2018

19. What the sewerage renewal means to you
The City of Kenner counts on this 1.14 mill tax to generate $540, per year which covers the cost of the following:
Operation of the system
Maintenance of the system
LDEQ Loan payments
Municipal bond payments
20% yearly coverage ratio (required by the bond issuers)
Although the new user rate increase has been enacted, we still depend on the $540, this 1.14 mills will generate. The user rate is calculated to include this necessary funding.
11/8/2018

20. City of Kenner garbage collection and disposal millage renewal

21. What the garbage collection and disposal MILLAGE renewal means to you
Presently, garbage collection and disposal is paid via the following:
In 2002, voters approved 2.40 mills for garbage collection and disposal. The City of Kenner is currently collecting mills.
Existing Service Charge
Residents-$10.33
Commercial-$16.87
Senior Discount-$7.28
This combination of the current 1.61 millages and the service charge does not provide enough revenue to fully fund the entire garbage collection and disposal operation
11/8/2018

22. What the garbage collection and disposal millage renewal means to you
Kenner residents enjoy one of the lowest (if not the lowest) garbage collection rates in the greater New Orleans region.
Our current rate is $10.21 per residential and small commercial unit
The cost of disposal at the sanitary land fill is borne by the City
Approval of the previously authorized rate of 2.4 mills will allow the City to completely fund its garbage collection and disposal expense; also this approval will allow a small cushion to provide for any future fuel rate adjustments (which are projected to climb)
11/8/2018

23. City of Kenner police department

24. Why do your police need your help?
Current KPD Funding Formula= The greater of $400, or one percent (1%) of the Treasure Chest Casino’s gross revenue + Twenty-four percent (24%) of the Treasure Chest Casino’s gross revenues to the City of Kenner All revenues collected within the City of Kenner related to one-quarter cent of sales tax by the Law Enforcement District of Jefferson Parish Amounts rebated by Jefferson Parish for Kenner payments into the 911 system Fifty percent (50%) of court fines assessed by the City of Kenner Twenty-four percent of the undedicated revenues collected by the City of Kenner Police retirement costs in excess of nine percent (9%)
11/8/2018

25. Why are the police requesting your consideration?
No part of KPD’s funding formula contains a millage
In 2004, the funding formula for KPD was amended; KPD’s funding formula no longer includes revenues from the BellSouth franchise agreement, airport sales tax, nor the 50% of 1/3 of sales tax.
This change resulted in a total deduction of approximately $1.8 million dollars from KPD’s budget
The KPD funding formula has no stable, constant or reliable funding source as all elements have the capability to fluctuate
As a result of the Country’s economic decline, the rising popularity of online sales, and competition with surrounding retailers outside of Kenner, the sales tax revenue has plummeted significantly, leaving a large deficit in the Kenner Police Department’s budget
The City of Kenner has amended its budget moving capital outlay monies to correct KPD’s deficit, leaving limited or no funds for repairs or improvements to Kenner’s infrastructure
11/8/2018

26. Kenner police department vs. lake Charles police department
Lake Charles Police Budget
City of Kenner Police Department Budget
$16,521,630.00
$16,059,774.00
The City of Kenner’s Police Budget includes the operation of its own jail facility; Lake Charles uses Calcasieu Parish’s jail facility.
Cost to run KPD’s jail facility= $838,000.00
The City of Kenner’s Police Budget includes the operation of its own 911 call center; Lake Charles uses Calcasieu Parish’s 911 call center.
Average cost to run KPD’s 911 call center= $788,248.00
While the police departments of both the City of Kenner and the City of Lake Charles possess similar budgets, Lake Charles has a much larger capital budget which can be utilized by the police department if needed
Kenner’s Capital Budget = $0.9 million
$150,000-hotel motel tax for Laketown
$750,000-council district funds
Lake Charles Capital Budget = $10 million
11/8/2018

27. Kpd cost to outfit recruit
Vehicle Crown Vic $30,500 Tahoe $33,500 Body Armor $ Uniforms $ Shirt Badge $ Name Plate $13.00 Serving Since Pin $13.00 Collar Insignia $20.00 M & P Point 40 Pistol $ Ammunition $25.00 Taser w/ Cartridges $ Inner Gun Belt $40.00 Duty Gun Belt $60.00 ID Wallet $24.00 Holster $86.00 Magazine Pouch $21.00
ASP w/Holder $145.00
Police Radio
w/accessories $5,500.00
OC Spray w/ Holder $29.00
Raincoat & Boots $40.00
Gym Clothes & Cap $60.00
Dress Hat $25.00
Hat Badge $53.00
Mock Turtleneck $25.00
Summer T-Shirt $15.00
Traffic Vest $12.00
AED $12.95
Psychological Test $300.00
Medical Physical $411.00
Drug Screen $95.00
Hepatitis Vaccine $200.00
Training Academy $700.00
Applicant Test $22.00
TOTAL: $42,863.00
11/8/2018

28. Kpd recurrent cost to continuously outfit its officers
1. Recommended Replacement Every 5 Years:
Vehicle: $30, Crown Vic
$33, Tahoe
2. Mandatory replacement Every 5 Years:
Body Armor: $928.00
3. Mandatory Replacement Annually:
Ammunition-Duty $25.00
Ammunition-In Service $50.00
Uniforms $820.00
Taser Training Cartridges $38.00
Mock Turtleneck $25.00
Summer T-Shirt $15.00
AED Pads $64.00
Drug Screen $95.00
TOTAL $1,132.00
4. Replacement as needed:
OC Spray $14.00
Raincoat & Boots $40.00
Gym Clothes & Cap $60.00
Dress Hat $25.00
Traffic Vest $12.00
Inner Gun Belt $40.00
Duty Gun Belt $60.00
TOTAL $251.00
11/8/2018

29. Why are your police requesting your consideration?
Dept.
6/30/10
Budgeted
Actual
6/30/11
6/30/12
6/30/13
6/30/14
6/30/15
Personnel
12,
11,684,651
13,209,274
13,741,288
14,435,874
14,852,959
15,951,161
Supplies
751,000
696,122
696,000
706,440
717,037
727,792
738,709
Service Charges
954,500
978,071
969,500
984,043
998,803
1,013,785
1,028,992
Insurance
900,000
814,200
800,000
812,000
824,180
836,543
849,091
Total Costs
14,907,227
14,891,044
16,059,774
16,243,770
16,975,894
17,431,079
18,121,130
Capital Outlay required
718,000
385,000
11/8/2018

30. What would this cost kenner’s residents if kpd’s funding shortfalls remain unresolved?
Major budget shortfalls have or will create the following negative impacts on our Kenner Police Department and Kenner’s citizens:
The safety of Kenner will decrease as monies are not available to allow for more officers to work, and layoffs will be imminent
Quality trained officers will leave KPD to seek employment with departments with proper funding, equipment, and opportunities for growth and better compensation
11/8/2018

31. What would this cost kenner’s residents if kpd’s funding shortfalls remain unresolved?
Major budget shortfalls have created the following negative impacts on our Kenner Police Department:
Equipment utilized by the police department will continue to become aged, damaged and in need of replacement and repair as monies are unavailable to address these problems
Aging fleet will become increasingly unreliable and costly to repair
Police vehicles depreciate at a more rapid rate than standard citizen vehicles.
Hiring freezes for non-essential employees will remain in effect, thereby hindering the growth and potential of KPD
The overall safety and quality of life for the citizens of Kenner is jeopardized
11/8/2018

32. City of Kenner fire department

33. Millage Historical Data
Millage was originally passed in mils
It generated 1.9 million dollars in 1983
The fire department budget was 1.9 million dollars at that time
11/8/2018

34. Millage Historical Data
11/8/2018

35. Why do your firefighters need your help?
The City of Kenner’s Fire Department currently possesses a PIAL rating of Class 2
This Class 2 rating was granted contingent on KFD making the necessary improvements and upgrades
There is no funding to make the required improvements and upgrades to remain a Class 2 or to meet the goal of becoming a Class 1 fire department
If KFD loses its Class 2 rating, the property insurance cost of Kenner’s citizens will increase; conversely, if KFD meets its goal of a Class 1 rating, Kenner’s citizens will see a decrease in property insurance cost
St. Tammany Parish Residents are battling this issue as their fire class rating was not entered correctly by some insurance companies and dropped from a rating of three (3) to four (4)
This has caused major increases in their homeowner’s insurance premiums
Most importantly, a Class 1 fire department will provide better service and safety to the residents of Kenner
11/8/2018

36. Why do your firefighters need your help?
Rating deficiency exists as current employee schedule does not provide the most efficient use of manpower
All facilities and equipment cannot be manned at all times
NFPA recommends a fire truck be manned by 4 men at all times
Currently, Kenner staffs a fire truck with 3 men
Most local fire departments use a 56 hour per work week schedule
Kenner does not possess the funding for this
Kenner’s apparatus fleet is the oldest in the Greater New Orleans area, creating unreliability and high repair costs
Most apparatus fleet is out of warranty;
Some manufacturers are out of business, which creates high costs for repairs
11/8/2018

37. How Our Fire department can improve its class rating
Placing a dedicated aerial device in service
Upgrading apparatus fleet
Appropriate staffing
Change work schedule to 56 hour work week to better utilize employees
Man fire trucks with 4 men as recommended by NFPA
11/8/2018

38. How Our Fire department can improve its class rating
Replace Stations 35 (1801 Williams) &
38 (400 Veterans)
Proper allocation of equipment
Replacement of five (5) pumpers
Replace essential fire fighting equipment
Air packs and bottles
Turnout gear
Non-fire fighting vehicles
Station equipment
Acquire aerial ladder truck
Purchase 100’ aerial device
11/8/2018

39. Insurance cost for A class 3 fire department
Company
HO-3 Annual Premium-$150,000 Brick & Masonry-Kenner-$500 w/ 2% Hurricane Deductible
Old Class 2
New Class 3
Cost $ %
State Farm Fire & Casualty Insurance Company
$2,258.00
$2,346.00
$88.00
3.9%
Allstate Insurance Company
$1,365.00
$0.00
0.0%
Louisiana Farm Bureau Mutual Insurance Company
$977.00
$999.00
$22.00
2.3%
Avg. ((1) + (2) + (3))/3
$1,533.00
$1,570.00
$37.00
2.4%
11/8/2018

40. Insurance Savings for A class 1 fire department
Company
HO-3 Annual Premium-$150,000 Brick & Masonry-Kenner-$500 w/ 2% Hurricane Deductible
Old Class 2
New Class 1
Savings $ %
State Farm Fire & Casualty Insurance Company
$2,258.00
$2,213.00
($45.00)
-2.00%
Allstate Insurance Company
$1,365.00
$1,332.00
($33.00)
-2.40%
Louisiana Farm Bureau Mutual Insurance Company
$977.00
$955.00
($22.00)
-2.30%
Avg. ((1) + (2) + (3))/3
$1,533.00
$1,500.00
11/8/2018

41. Net cost of fire millage increase
If Class 1 rating is achieved, the following is the net cost for a home valued at $150,000.00
Millage increase= $45.00 per year -
Insurance Savings= $33.00 per year
______________________________________________
Net Cost of Millage Increase $12.00 per year
11/8/2018

42. Advantages More efficient services for the public
More experience in positions
Shift some of the public’s expenses to pay for services instead of insurance
Property Tax is a deduction on Federal Income Taxes and insurance is not
Employee retention
Less maintenance cost for equipment
11/8/2018