Transcript Hard times and difficult decisions

2009 Revised & 2010
Unified Government Proposed Budget
July 13, 2009
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Bright Future – 2013 and beyond
Lean years between 2009 and 2012
Symbolic continued decrease in property tax rates
Maintained Commission goals and priorities
Expanded targeted service levels
Diversify Revenues
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To Control costs
 Implemented hiring freeze
 Delayed Capital projects
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Anticipated new Casino Revenues
Decreased property tax rate slightly
Planned Prudent use of fund balance
Maintained service levels
City & County General Funds
Revenues Vs. Expenditures
$200,000,000
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
2002
2003
2004
Expenditures
2005
2006
Revenues
2007
2008
2009
Ending Fund Balance
 National Collapse of Housing Market
 Credit Markets close down
 Financial Institutions default
 National Economic Recession
 Unemployment skyrockets
 State of Kansas Budget Crisis
 $6.4 m cut from anticipated revenues
 Machinery & Equipment Tax elimination
results in major revenue loss;
reimbursement payments stopped
 Special City-County Highway Fund
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State Funding gone
Property Tax
Sales Tax
Mortgage Tax
Building Permits
Gaming Revenue
Investment Earnings
$2.7m
$5.5m
$2.5m
$1.1m
$1.4m
$1m
$1.2m
$15.4 Million
 Money we had expected to
receive, must NOW be cut from
the Unified Government Budget
 7% reduction in property values
 15% Tax Delinquency rate
 Continuing Sales Tax decline
 Further reduction from State
City & County General Funds
Revenues Vs. Expenditures
$200,000,000
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
2002
2003
2004
Expenditures
2005
2006
Revenues
2007
2008
2009
2010
Projected
Ending Fund Balance
“Police, Fire, Grass
Streetlights,
among City of
Topeka Cuts”
“KC Council OK’s
pact with
Firefighters Union
that includes
concessions”
Kansas City Star
WIBW.com
“City Budget crisis
may take officers
off streets”
Cincinnati.com
“Wichita considers
layoffs to cover
budget shortfall”
“Dallas City Council
knows “brutal”
budget cuts
coming”
The Dallas Morning News
Wichita Eagle
“City lays off
employees as it
tries to address
budget shortfalls”
The Olathe News
“Overland Park
wants to cut
budget by $67 m in
5 years”
Kansas City Business Journal
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On the Expense Side
 Cut personnel expenses
 Eliminate non-essential services
 Reduce primary essential service levels
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On the Revenue side
 SALES TAX - Give serious consideration to increasing sales
tax , which requires public support and referendum
 ECEP - Economic Crisis Emergency PILOT
 Temporary inter-fund deferrals
 Federal Stimulus Dollars
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$ 1,000,000*
$
TBD *
$ 500,000*
$ 840,000
$ 204,000
$5,000,000
COPS (GF per year – over 3 years)
SAFER (GF per year – over 4 years)
Byrne Grants (2) (GF- over 2 years)
Justice Assistance Grant (GF-up to 3 years)
Justice Assistance Grant (GF-up to 3 years)
State Avenue – 47th to 69th Streets
(CMIP Project long-term impact to B& I Fund)
$ 650,000
$1,398,000
CDBG
Energy Efficiency and Conservation Block Grant
$2,000,000
Transit (Buses and Preventive Maintenance)
$3,600,000
NSP
$1,003,000
Homeless Prevention
$2,700,000
Adult Employment & Training
$2,200,000
Summer Youth Program
$ 98,000
Community Health Centers
$ 85,000
Aging
$1,200,000
Weatherization Assistance Program
$ 775,000
I-435 & Woodend Road – Edwardsville
$ 440,000
138th Street – Bonner Springs
*Competitive grant application pending
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EXPENDITURES - Implement overall reductions in
expenditures across the organization generally of 10% or
more
REVENUES - Selectively increase revenue opportunities
to offset funding losses
SERVICES - Minimize impact on citizens by maintaining
essential services and reducing non essential services
TAXES - Hold the line on the Property Tax Mill Rate; thus
NO increase in Property Taxes and in fact
most will see an average 7% reduction in
their UG property tax bill for 2010
City and County Mill Levies: 1996 - 2009
100
97
Mill Levy
80
70
60
40
20
0
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 30.477
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 40.258
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 70.735
Budget Year
If current tax rate is maintained Tax payers would a see an average 7%
decrease in UG tax bills resulting from a 7% average reduction in property
values.
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HIRING FREEZE and retirement incentives will result in a
reduction of more than 300 positions/15% of workforce by April 1,
2010
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AVOID LAYOFFS while positions will be eliminated, every effort is
being made to avoid layoffs
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REDUCTION IN PERSONNEL EXPENSES
 Must honor the collective bargaining process with the multiple labor
unions representing more than 60% of the workforce
 Continue Salary/COLA freezes
 Furloughs begin this August through the end of 2010;
general fund employees would be off one day a month
without pay excepting sworn public safety personnel
“Sacrifice of many to avoid layoff of individuals “
2009
Date or Day to be determined*
Operational
Status*
Proposed Furlough Schedule - 2009
August
Floater
Open
September
September 4
Buildings Closed
October
October 12
Buildings Closed
November
Floater
December
December 24
Open
Buildings Closed
*Furlough Floater Day off to be scheduled similar as vacation
**District Court may be required to be open, thus courts buildings only may be open on
limited basis. Other offices such as D.A. and grant funded units such as Health Department,
may be operating on limited open basis as well on dates scheduled for closure.
2010
Date or Day to be determined*
Operational Status**
January
Floater
February
February 12
March
Floater
Open
April
Floater
Open
May
May 28
Buildings Closed
June
Floater
Open
July
July 2
August
Floater
September
September 3
Buildings Closed
October
October 11
Buildings Closed
November
November 12
Buildings Closed
December
December 23
Buildings Closed
Open
Buildings Closed
Buildings Closed
Open
*Furlough Floater Day off to be scheduled similar as vacation
**District Court may be required to be open, thus courts buildings only may be open on
limited basis. Other offices such as D.A. and grant funded units such as Health Department,
may be operating on limited open basis as well on dates scheduled for closure.
To Reduce Major Costs
In Jail Operations
Unprecedented Cooperation Underway
Moe Ryan
Municipal Court Judge
John Mendez
Commissioner
At-Large District 1
Joe Reardon,
Mayor/CEO
Jerome Gorman
District Attorney
Wayne Lampson
Chief Judge
Don Ash, WYCO
Sheriff
Tom Cooley
Commissioner,
District 7
To control the skyrocketing costs of housing inmates
Immediate efforts are underway to reduce the
average length of stay including:
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FARM OUTS - Shift to alternate, lower cost facilities to house inmates that are farmed out
HOUSE ARREST - Expand options for utilizing House Arrest for inmates not posing a threat
to the public
PROCESSING OF INMATES - More timely and efficient processing of inmates in and out of
the WYCO facility
TRANSFER OF INMATES – Reducing holding times of inmates transferring to other
facilities such as Kansas Department of Corrections (KDOC)
SENTENCING GUIDELINES – Review of practices in both District Court and Municipal
Court but assuring steps taken do not endanger
the citizens of Wyandotte County
Efforts underway estimated to reduce expenditures by:
2009 - $1,050,000
2010 - $2,700,000
Review of long-term need and options being undertaken as well
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Public Safety recruit classes limited to funding from COPS/SAFER Grants
Major reductions in funding for Parks and Recreation
Reduction in funding for Snow Removal; Weed cutting; Street Cleaning
Decrease in Public Transportation Services
Cut UG funding for the County Historical Museum/limited operations only
Suspend County CiFi Program to KCK/Bonner Springs & Edwardsville
Reduction in Building Security expenses by closing access points
Staffing adjustment for Public Safety 9-1-1 Dispatch Center
Reduction in funding for Senior Citizen Utility Rebate
Scale back 3-1-1 Program
Freezing of all Capital expenditures excepting Grant
and Federal Stimulus Funded projects
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Mental Health – reduced from $628k to $565k
CVB – reduced from $750k to $675k
County Fair Board – reduced from $198k to $77k
Extension Service –reduced from $431k to $388k
Kaw Valley Arts – reduced from $48k to $18k
Neighborhood Group’s NBR – cut 10%
WYEDC – cut 10%
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WYEDC – Assuming greater Eco Devo role
Parks Rangers to Sheriff/PD First Responder to 9-1-1
Manager of Accounting and Payroll merged
Shifting responsibilities of Risk Management/WC
Shifted Constituent and Organizational Affairs duties
To avoid layoffs – shift and retrain
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Inter Fund Transfers and Deferrals – one time
shift from existing UG accounts that must be
repaid
 Employee Health Insurance Fund
 Environmental Trust Fund supported by the
Residential Solid Waste Management Program
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Last year we increased the UG/BPU PILOT fee to
9.9% and would require reauthorization in 2010
Reluctantly propose increase to 12.8% as an
emergency economic crisis relief measure
Increase would phase out 1% per year over the
next three years
Temporary in nature - burns off in 3 years
Economic Crisis Emergency PILOT
BPU PILOT Percentages
14.0%
12.8%
12.0%
PILOT %
10.0%
11.9%
10.9%
9.9%
9.9%
8.0%
6.0%
4.0%
2.0%
0.0%
2009
2010
2011
Year
2012
2013
The Current 2010 Unified Government
Annual Budget - $250.1* Million
All Funds
Reserves 3%
Debt Service
7%
Capital 10%
Operating
80%
* Not including grants
2010 UNIFIED GOVERNMENT EXPENDITURE
BUDGET TOTAL $250,182,790
Administration,
$0.09
Debt Service, $0.11
Public Safety, $0.51
Public Works, $0.13
Community
Services, $0.11
Judicial Services,
$0.04
Other Services,
$0.01
SOURCES OF SUPPORT - 2010 PROPOSED BUDGET
Fund Balance
$6,874,187
3%
Fines/Fees
$8,660,000
3%
Other
$12,970,222
5%
Property Tax
$71,046,532
28%
Interest Income
$2,929,800
1%
Intergovt.
Revenues
$13,067,575
5%
Charges for
Service
$41,184,635
17%
Sales Tax
$36,276,000
15%
Other Taxes
$20,308,839
8%
TOTAL = $250,182,790
Franchise Tax
$36,865,000
15%
SOURCES OF SUPPORT - CITY GENERAL FUND
2010 PROPOSED BUDGET
Intergovt.
Revenues
$764,400
1%
Interest Income
$172,300
<1%
All Other
$10,884,007
9%
Property Tax
$23,839,475
21%
Charges for
Service
$9,706,200
8%
Other Taxes
$6,945,466
6%
Sales Tax
$28,300,000
24%
Franchise Tax
$36,350,000
31%
TOTAL = $116,961,848
SOURCES OF SUPPORT - COUNTY GENERAL FUND
2010 PROPOSED BUDGET
Interest Income
$2,429,200
5%
All Other
$3,846,291
8%
Intergov. Revenues
$2,030,000
4%
Property Tax
$25,843,471
55%
Charges for Service
$2,577,000
6%
Other Taxes
$6,113,333
13%
Sales Tax
$3,935,000
9%
TOTAL = $46,774,295
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Must carefully monitor the situation as fund
balances remain low
No room for slippage or surprises
Must be cautious and conservative in managing
through these difficult financial times
Must also focus on restoring fund balances to
adequate levels to maintain favorable
credit status and bond ratings
May 7
July 9
July 13
July 16
7pm
7pm
5pm
4pm
July 20
July 23
July 27
July 30
7pm
4pm
4pm
4pm
5PM
7pm
1st Budget Public Hearing (CDBG)
Public Comment on proposed budget
Budget Presentation followed by Work Session
Budget Work Session – Set Maximum Mill Levy
Set Furlough Schedule
*Budget Work Session
Budget Work Session
Budget Work Session
Budget Work Session
Public hearing
Adopt Budget & CDBG Consolidated Plan
ECEP Initiative will require meet and confer meeting with Board of Public Utilities
BUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM
*Budget Work Session to be held immediately following
Standing Committee meetings
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Our Bright future
 Casino dollars – est. in 2011/2012
 STAR BOND pay-off – est. in 2013
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The future will be different, and even after the recession
recedes, the fundamentals for local government will
evermore be changed from what we know from the past
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Future remains bright, we will manage through the
current challenges and be in a better position
our organization and our community to be
able to take advantage of opportunities
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Our Citizens
Outside agencies
Other stakeholders such as Neighborhood Groups
Board of Public Utilities
Our 13 Labor Unions
The Unified Government Employees
The Unified Government Commission
May 7
July 9
July 13
July 16
7pm
7pm
5pm
4pm
July 20
July 23
July 27
July 30
7pm
4pm
4pm
4pm
5PM
7pm
1st Budget Public Hearing (CDBG)
Public Comment on proposed budget
Budget Presentation followed by Work Session
Budget Work Session – Set Maximum Mill Levy
Set Furlough Schedule
*Budget Work Session
Budget Work Session
Budget Work Session
Budget Work Session
Public hearing
Adopt Budget & CDBG Consolidated Plan
ECEP Initiative will require meet and confer meeting with Board of Public Utilities
BUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM
*Budget Work Session to be held immediately following
Standing Committee meetings