Transcript City of Kenner-Proposed MilLage election

Kenner residents are being asked to consider the following:

8 mills-Police Department Operations


4 mills-Police Department Buildings & Equipment


10 year tax renewal and increase from the current rate of 1.61 mills to the previously authorized
maximum rate of 2.40 mills
11.40 mills-Fire Department Operations


10 year 1.14 mill tax renewal
2.40mills-Garbage Collection and Disposal


10 year 4 mill tax
1.14 mills-Sewerage


10 year 8-mill tax for salaries and benefits of the police department personnel
10 year tax renewal and increase to 11.40 mills from the previously authorized maximum rate of 11.02
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
SAMPLE APRIL 2, 2011 BALLOTS
7/17/2015
3
110,000,000
105,000,000
Bond proceeds
100,000,000
Grants/FEMA funds
95,000,000
Miscellanous
90,000,000
Sales Tax
85,000,000
Other taxes
80,000,000
Intergov
Revenues, $m
75,000,000
70,000,000
Riverboat
65,000,000
Licenses & Permits
60,000,000
Fines & Forfeitures
55,000,000
Franch fees
Sales Tax
50,000,000
Sewer Revenues
45,000,000
Charges for service
40,000,000
Property Tax
35,000,000
30,000,000
Gaming
25,000,000
Property tax is
the ONLY
funding source
the City is asking
to increase ; all
others remain
the same.
20,000,000
15,000,000
10,000,000
Property Tax
5,000,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
PROPERTY TAX IS A MORE STABLE & RELIABLE FUNDING SOURCE

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

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

Among the steps taken to reduce more than 5.1 million in
expenditures are:

Reduced employee benefits


Eliminated costly and inefficient city contracts







(i.e. long & short term disability plans)
(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
City
Kenner
Gretna
Alexandria
Slidell
Gulfport
Bossier
City
Biloxi
Population
66,702
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

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 15.35 mills with a population
of 71,757.
City
Population
Millages
Kenner
66,702
18.13
Lake Charles 71,757
15.35
Treasure Chest Casino,
Kenner, LA
L’auberge Du Lac Resort Casino
Lake Charles, LA

Revenue projections for the 2010-2011 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

The City of Lake Charles has just received confirmation that it will be
the home to another $400,000,000.00 Casino

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

Sales Tax The City of Lake Charles sales tax revenues for Fiscal Year
2010-2011-$41,248,000.
 The City of Kenner sales tax revenues for Fiscal Year 20102011-$28,712,000.00

Sales Tax revenues are $12,536,000.00 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
approximately $16 million to $10 million
decreased
from

The following are comments from Mayor Randy Roach
in his budgetary address for Fiscal Year 2010-2011:

“As you know we will end our current fiscal year (FY 20092010) 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.”
Lake Charles Police
Budget
$16,521,630.00
City of Kenner Police
Department Budget
$16,059,774.00
Lake Charles Fire
Department Budget
$13,357,433.00
City of Kenner Fire
Department Budget
$6,913,361.00

Kenner Resident



Metairie Resident



Millages to Jefferson Parish-64.46
Millages to the City of Kenner-18.13
Total Millages Paid= 82.59
Millages to Jefferson Parish-102.70
Total Millages Paid= 102.70
Gretna Resident*



Millages to Jefferson Parish-62.55
Millages to the City of Gretna-43.98
Total Millages Paid= 106.53
* Unlike Kenner, the City of Gretna does not enjoy a municipal
homestead exemption.
*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%.

Households with a home assessed at a value of
$75,000.00 or less will remain tax exempt

Household with a home assessed at a value of
$150,000.00


Increase of $141.00 per year or $11.75 per month
Household with a home assessed at a value of
$250,000.00

Increase of $329.00 per year or $27.41 per month

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

The City of Kenner counts on this 1.14 mill tax to
generate $540,000.00 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 $540,000.00 this 1.14 mills will
generate. The user rate is calculated to include this
necessary funding.

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
1.61 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

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)
Current KPD Funding Formula=
The greater of $400,000.00 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%)

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
Lake Charles Police Budget
$16,521,630.00



City of Kenner Police Department Budget
$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
Vehicle
ASP w/Holder
$145.00
Crown Vic
$30,500
Police Radio
Tahoe
$33,500
w/accessories
Body Armor
$928.00
OC Spray w/ Holder
$29.00
Uniforms
$820.00
Raincoat & Boots
$40.00
Shirt Badge
$ 62.00
Gym Clothes & Cap
$60.00
Name Plate
$13.00
Dress Hat
$25.00
Serving Since Pin
$13.00
Hat Badge
$53.00
Collar Insignia
$20.00
Mock Turtleneck
$25.00
Summer T-Shirt
$15.00
M & P Point 40
$5,500.00
Pistol
$479.00
Traffic Vest
$12.00
Ammunition
$25.00
AED
$12.95
Taser w/
Psychological Test
$300.00
$411.00
Cartridges
$845.00
Medical Physical
Inner Gun Belt
$40.00
Drug Screen
Duty Gun Belt
$60.00
Hepatitis Vaccine
$200.00
ID Wallet
$24.00
Training Academy
$700.00
Holster
$86.00
Applicant Test
Magazine Pouch
$21.00
TOTAL:
$95.00
$22.00
$42,863.00
1.
Recommended Replacement
Every 5 Years:
Vehicle:
Vic
$30,500.00 Crown
$33,500.00 Tahoe
2.
Mandatory replacement Every
5 Years:
Body Armor:
3.
$928.00
Mandatory Replacement
Annually:
$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
$1,132.00
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
Ammunition-Duty
TOTAL
4. Replacement as needed:
$251.00
Dept.
6/30/10
Budgeted
6/30/10
Actual
6/30/11
Budgeted
6/30/12
Budgeted
6/30/13
Budgeted
6/30/14
Budgeted
6/30/15
Budgeted
Personnel
12,301.727
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
718,000
385,000
Capital
Outlay
required

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 iminent
Quality trained officers will leave KPD to seek employment
with departments with proper funding, equipment, and
opportunities for growth and better compensation

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

Millage was originally passed in 1983 @ 10.25 mils

It generated 1.9 million dollars in 1983

The fire department budget was 1.9 million dollars at
that time

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

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

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

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

HO-3 Annual Premium-$150,000 Brick &
Masonry-Kenner-$500 w/ 2% Hurricane
Deductible
Cost
Company
Old Class 2 New Class 3
$
%
State Farm Fire & Casualty Insurance
Company
$2,258.00
$2,346.00
$88.00
3.9%
Allstate Insurance Company
$1,365.00
$1,365.00
$0.00
0.0%
$977.00
$999.00
$22.00
2.3%
$1,533.00
$1,570.00
$37.00
2.4%
Louisiana Farm Bureau Mutual
Insurance Company
Avg. ((1) + (2) + (3))/3
HO-3 Annual Premium-$150,000 Brick &
Masonry-Kenner-$500 w/ 2% Hurricane
Deductible
Savings
Company
Old Class 2 New Class 1
$
%
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%
$977.00
$955.00
($22.00)
-2.30%
$1,533.00
$1,500.00
($33.00)
-2.40%
Louisiana Farm Bureau Mutual
Insurance Company
Avg. ((1) + (2) + (3))/3
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






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