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A Prudent Approach to a Challenging Economy. Unified Government of Wyandotte County/Kansas City Kansas Proposed 2009 Budget July 10, 2008. National Economic Trends. Skyrocketing gas prices Record number foreclosures Decreasing home values Rising unemployment Slower consumer spending.

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a prudent approach to a challenging economy

A Prudent Approachto aChallenging Economy

Unified Government of Wyandotte County/Kansas City Kansas

Proposed 2009 Budget

July 10, 2008

national economic trends
National Economic Trends
  • Skyrocketing gas prices
  • Record number foreclosures
  • Decreasing home values
  • Rising unemployment
  • Slower consumer spending
economic challenges resulting from federal state actions
Economic Challenges resulting from Federal & State Actions
  • 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
budget woes common
Budget Woes Common
  • State of Kansas Government collected $61m less than anticipated in taxes during it's recently ended 2008 fiscal year a 1% shortfall that could create budget headaches
  • Kansas City Missouri faces budget shortfall of over $50m and up to 70 layoffs
  • Olathe eliminates 16 full time positions
  • Merriam is considering a 20% Mill Levy increase
  • Douglas County is considering 2-3 Mill increase
  • Overland Park is looking to cut $1.6 million out of its 2009 budget
  • Shawnee Kansas plans delay in street maintenance and proposes household Franchise Fee
  • Topeka considering 9% property tax increase
  • Johnson County manager states “worse budget in 32 years”
impacts on the ug budget
Impacts on the UG Budget
  • Slowing of revenues
  • Property valuations
  • Record fuel prices
  • Increasing operational costs
  • Impact of property tax appeals
  • Harsh winter storm expenses
unified government s budget goals
Unified Government’sBudget Goals
  • 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
2009 budget recommended property tax rate
2009 Budget RecommendedProperty Tax Rate
  • 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
2009 budget recommendations reduction in expenses
2009 Budget RecommendationsReduction in Expenses
  • 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
2009 budget recommendations reduction in expenses1
2009 Budget RecommendationsReduction in Expenses
  • 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
2009 budget recommendations reduction in expenses2
2009 Budget RecommendationsReduction in Expenses
  • 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
2009 budget recommendations enhanced revenues
2009 Budget RecommendationsEnhanced Revenues
  • Major Enhancements
    • Establish Storm Water Utility
    • Increase BPU PILOT (Payment In-Lieu of Tax)
  • Other
    • Accelerate collections on unpaid tickets, i.e. Amnesty program
    • Increase traffic fines
    • Restructure XSPAND delinquent tax contract
    • Credit card transaction fees
    • Jail booking fees
storm water
Storm Water
  • 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
adjustment in pilot fee
Adjustment in PILOT Fee
  • 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
2009 budget will meet essential needs
2009 Budget Will MeetEssential Needs
  • 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
2009 budget recommendations organizational impacts
2009 Budget RecommendationsOrganizational Impacts
  • 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
effects of recommendations
Effects of Recommendations
  • 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
slide20

UG 45%

Other 55%

successes achievements
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

Successes & Achievements
a new chapter at a new level on the near horizon
A New Chapter at a New Level on the near Horizon
  • Destination Casino Resort
  • Woodlands Racino
  • Schlitterbahn Vacation Village
  • Plaza at the Speedway
  • Prescott Plaza
  • Village West STAR Bond Retirement
  • Downtown Office Building
  • Midtown Redevelopment
magellan storage tank fire june 3 2008
Magellan Storage Tank FireJune 3, 2008

….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

budget calendar
Budget Calendar

May 1 7pm 1st Budget Public Hearing

July 10 5pm Budget Work Session/Public Comment

July 17 5pm Budget Work Session

July 21 7pm *Budget Work Session

July 24 5pm Budget Work Session

July 28 7pm *Budget Work Session

July 31 5pm 2nd Budget Public Hearing

July 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