City Council Agendas

• 1 Blue Springs - Pti»o~ NOTICE OF CITY COUNCIL BUDGET WORK SESSION THURSDAY, AUGUST 16, 2018 6:00 PM JOURNAGAN FAMILY COMMUNITY ROOM PUBLIC SAFETY BUILDING 1100 SW SMITH BLUE SPRINGS, MO 64015 The Mayor and City Council of the City of Blue Springs, Missouri will hold a budget work session on Thursday, August 16, 2018 beginning at 6:00 p.m. in the Journagan Family Community Room of the Howard L. Brown Public Safety Building at 1100 SW Smith in Blue Springs, Missouri, to discuss the proposed City budget for the 2018-19 Fiscal Year. This public notice was posted at the Public Safety Building and on the City's website on Wednesday, June 27, 2018.  CITY OF BLUE SPRINGS, MISSOURI MINUTES OF BUDGET WORK SESSION AUGUST 16, 2018 A Budget Work Session of the City Council of the City of Blue Springs, Missouri, was held on Thursday, August 16, 2018, 6:00 p.m. in the Howard Brown Public Safety Building, Council Conference Room , with Mayor Carson Ross presiding. COUNCILMEN IN Jerry Kaylor Dale Carter ATTENDANCE Chris Lievsay Kent Edmondson Ron Fowler Susan Culpepper - ABSENT CALL MEETING Mayor Ross called the City Council executive session to order at 6:00 p.m. TO ORDER BUDGET City Administrator Eric Johnson and Assistant City Administrator Christine Cates presented the highlights of the FY 2018-19 Budget for Council consideration . A copy of the Budget Message and one-page summary are attached to these Minutes and incorporated herein. ADJOURNMENT There being no further business, at 6:40 p.m., Mayor Ross declared the Budget Work Session adjourned. CITY OF BLUE SPRINGS Carson Ross , Mayor  a• Blue Springs, Missouri la Office of Administration August 1, 2018 Honorable Mayor and City Council: I am pleased to submit the Blue Springs operating budget and Capital Improvements Program (CIP) for the fiscal year October 1, 2018 through September 30, 2019 (FY 2018-19). The proposed budget totals $69,971 ,102 representing an increase of 2.39% or $1 ,634,677 over the FY 2017-18 adopted budget. The proposed budget represents our continued effort to provide residents with high value municipal services in a fiscally responsible manner that is in alignment with the 2015 Strategic Plan Framework and the 2014 Citizen Survey. The City is currently conducting the 2018 Citizen Survey and those results will be included in next year's budget. The City's budget includes areas where new revenue sources will allow the City to address deferred maintenance in the City's Parks system and other areas where operational expenditures must be reduced due to areas of minimal revenue growth. 2015 STRATEGIC PLAN FRAMEWORK In 2015, the City Council approved the Strategic Plan Framework, which sets forth the Blue Springs Vision Statement and establishes the values , guiding principles, and strategic goals and objectives for the next five- years. Vision statement: Blue Springs is a thriving, prosperous community on the move with vibrant, connected places filled with innovative involved VISION STATEMENT people of all ages. Blue Springs is athriving, prosperous community on the Value Statements: Innovate and Plan Ahead; move with vibrant, connected • Make Strategic Investments; places filled with innovative • People are Valuable; involved people of all ages. • Strengthen Partnerships; and Involve Citizens in Government VALUE STATEMENTS Innovate and Make Strategic People are Strengthen Involve Citizens Plan Ahead Investments Valuable Partnerships in Government 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov.com 1 [ GOAL AREA] ( PUBLIC SAFETY MAINTAIN HIGH LEVEL OF PUBLIC SAFETY FOR CITIZENS, AS SAFE NEIGHBORHOODS . ARE THE CORNERSTONE OF A QUALITY COMMUNITY (EFFECTIVENESS OF POLICE SERVICE/PROTECTION): • Continue funding for RAIDSONLINE, the Citizen Alert System (or Nixie) and the Text- A-TIP program. These technology tools enhance the City's ability to fight crime, and notify key citizen groups of public safety issues in a timely manner, thus improving citizen crime prevention. • 23.1 % of all City funding supports public safety efforts. • This includes 141 total employees including 100 Class A Certified/Commissioned Police Officers; the remaining 41 are dispatch, clerical and other non-commissioned support personnel. { • $379,800 for the replacement of police vehicles and equipment. • Maintain standards for professionalism through national accreditation (GALEA). • Funds totaling $205,400 are allocated for state-mandated police officer training and certification and advanced education. The allocation of training funds represents 51 % of the total funds budgeted City-wide for all training-related initiatives. • Provide staff support to the Public Safety Citizens Advisory Board for oversight of the Public Safety Sales Tax. • Conduct the Citizens' Police Academy (three classes during the year) and one Youth Police Academy. • Host the National Night Out Against Crime educational event. • Provide staff support and promote the Volunteers In Police Service program (VIPS). • Conduct the Girls on Fire Camp for girls 12-17 to address the unique set of challenges facing young girls. • Conduct the Life Sports Camp for boys 11-14 to address the challenges facing middle school aged boys through athletic competitions and daily group discussions. • Provide support for the Human Relations Commission to foster the improvements of human relations among and between citizens of all cultural backgrounds. 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov.com 2 [ GOAL AREA] INFRASTRUCTURE PLAN AND INVEST IN INFRASTRUCTURE TO SUPPORT NEIGHBORHOODS AND BUSINESS ACTIVITY (MAINTENANCE OF CITY STREETS/SIDEWALKS, FLOW OF TRAFFIC, CONGESTION MANAGEMENT, AND"COMPLETE STREETS"). The proposed budget includes the following elements to advance the Infrastructure Goal Area: $2,800,000 is budgeted for the Pavement Management Program (PMP), which will address overlay of older roads and surface treatments for newer pavement. The street selection process will utilize pavement rating data compiled during the 2016 pavement In 2018-2019, the City will once again resume surface study performed by Stantec. The PMP was suspended in the Pavement Management Program (PMP), 2018 to allocate the funds to the improvement of Roanoke Drive. The which will address overlay of older roads and surface treatments for newer pavement. 2018-19 budget will restart the PMP with a goal of addressing 13-17 miles of streets. $347,000 to address sidewalk maintenance/defects citywide which is funded by the Water Fund and the remainder of a one-time allocation of $1.183 million the City Council previously authorized for sidewalk repairs. This is the third year of the program and consists of an in-house sidewalk/flatwork crew that addresses sidewalk defects based on condition. • $85,000 in CDBG funds for eligible sidewalk improvements. • Continuing the crack seal and pothole crew and maintaining the City's commitment to repair any reported pot-holes within 48 hours. • Annual street sweeping of arterial, collector and residential streets. • The water crews inspect and exercise more than 2,527 fire hydrants and approximately 1,120 water main valves each year to ensure proper operation. • The Sewer Division will continue the systematic process of lining vitreous clay pipe within the heart of the city. The clay pipes are brittle and cracked, allowing water to infiltrate into the sanitary sewer system. The infiltration reduces the capacity of the conveyance and treatment systems. The contractor lined 39,016.96 feet of pipe in 2017 and 316,811.93 feet of pipe has been lined to-date. There is a total 176,086.25 linear feet of vitreous clay in the system available to be lined. • Sewer crews maintain 510,029 linear feet of sewer main to prevent blockages in the system and inspect for defects by flushing, root cutting and using closed circuit cameras. • $50,000 to support the Kansas City Area Transportation Authority (KCATA) commuter bus service from Kansas City to Blue Springs. $14,500 to provide 2-day-a-week transportation service for Blue Springs senior citizens, which includes $2,000 for disabled citizens that can utilize the service. 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov.com 3 [GOAL AREA] ( HOUSING FACILITATE THE DEVELOPMENT OF HOUSING FOR ALL AGES (EFFECTIVENESS OF COMMUNITY PLANNING AND PROPERTY MAINTENANCE). The proposed budget includes the following programs targeted Ii to furthering the Housing Goal: ~ 1_1:-: 1;1..' ~-.. :rr:t.;:.·. -:-,...-----.._..-.- '1~f~:1.,-. •: - -- 1 Bly(!; springs has consistently,been1, _•! • Continue implementation of the Community Development a~ ng the highest m13.(fOP.e>Eta.f! ~ft!e*- 1 Block Grant (CDBG) 2017-2022 Consolidated Plan in to,.·~n.e. housing·g·royytf?. Fro.m Octo.. ber. w. conjunction with the CDBG Advisory Committee including 1D.,~017 through June 30, 2018 there' ' support for Hope House and Community Services League. .w_~ ~§Q ~w 'single:fairifly. ~9mej.., 1, , ' • ·' ~ pe,mits .filed., •, " • II • $48,000 for continued program funding for the First-Time iial I I ._. - • •r- I fi I •i 1 .... ,• n.._11 ~:- ,_, •• • • I II II _ _._1 _ _ :..=ii~- I L . _.111 11.~•--· Home Buyers Program (funded through Federal CDBG funds) to help assist eligible residents with the purchase of their first home. [GOAL AREA] NEIGHBORHOOD PRESERVATION PRESERVE AND STRENGTHEN NEIGHBORHOODS AND NEIGHBORHOOD CENTERS (EFFECTIVENESS OF COMMUNITY PLANNING AND PROPERTY MAINTENANCE). The proposed budget includes funding for the following items within the Neighborhood Preservation Goal: • Ongoing updates to the Unified Development Code (UDC). • Continued implementation of the 2014 Comprehensive Plan. • Development of the C3 and N3 Specific Area Plans. • Training and education funds to foster innovation, enhanced customer service, and efficiency in the review of development proposals. • Enhanced customer service strategies include: customized training for front counter staff; implementation of Customer Service Strategic Plan; and online business license , permits, and inspection requests through the City's permitting and project tracking software. • Continued implementation of Property Maintenance Code to help address external maintenance of deteriorating residential property. • $75,000 for the Minor Home Repair Program (funded through CDBG funds) to help assist eligible low income residents with resources to help maintain their properties. ( 903 West Main Street • Blue Springs, MO 64015 • (816) 228-011 0 • www.bluespringsgov.com 4 [ GOAL AREA] PARKS &RECREATION INCREASE ACCESS TO OPEN SPACE AND RECREATIONAL AMENITIES TO PROMOTE A HEALTHY COMMUNITY (COMMUNITY IMAGE-PARKS AND PUBLIC SPACES). l 'I • ~ II • On April 4, 2017, voters approved a 5-year %-cent sales tax for Parks ~ , 1·t· ·~ _tl =--. •".1.~ ..- . ···\ · deferred maintenance. The projects that will be funded with the sales . II\ ... - · •i- -' . ' Ii! ..'\.,.. ,, .- ·:l tax are included in the City's capital improvement program and represent i,.1 1. . .. - - - :. - . . ,._.~~ / an estimated $15 million in investment in the City's parks over the next 5 Thanks to Blue Springs voters, Ward Park playground equipment was replaced years. as part of the 5- Year Dedicated Parks • Blue Springs Parks and Recreation manages 20 public parks (six Maintenance Sales Tax initiative. undeveloped), with 596 acres of park land located throughout the Blue Springs community and offers a wide range of programming for youth, adults, and the senior population. • Continued implementation of the Parks and Open Space Master Plan. This is the City's first Park's Master Plan and provides guidance and strategic direction for the Parks Program. Continued operation and promotion of the Fieldhouse, which provides recreational facilities for residents and visitors to our community. This budget includes the third full year of operations for the Fieldhouse, which opened in September 2015. • The proposed budget continues funding for the Public Art Commission's annual temporary public art display, and allocates $13,500 for this program. • The FY 2018-19 budget provides funding to maintain several popular community events including the Fourth of July Extravaganza, Summer Concerts in the Park, and the Easter Egg Hunt at Rotary Park at Railroad Lake. Provide CDBG scholarships for Fieldhouse memberships. Continued growth of the All-Stars programs and Day Camps. [ GOAL AREA] REVENUE STABILITY CREATE ASUSTAINABLEREVENUE STRUCTURE WITH ADEQUATE, STABLE AND DIVERSE REVENUESOURCES. Evaluate the outcome of the Supreme Court Wayfair decision and its impact on the City's need for approval of a city Use Tax. A Use tax would level the playing field between online merchants and local brick and mortar businesses. • The final year of implementation for the current three-year rate study recommendations for Sewer and Water Utilities. • Reduction in programs and services, where feasible, that do not directly support non-basic city services. • Prepare and distribute monthly revenue budget to actual reports to monitor progress throughout the year. Utilize the OpenGov transparency site both internally and externally to provide financial data and information to users. 903 West Main Street • Blue Springs, MO 64015 • (816) 228-01 10 • www.bluespringsgov.com 5 [ GOAL AREA] ( DEVELOPMENT AND REDEVELOPMENT GROW & DIVERSIFY BLUE SPRINGS BUSINESS SECTORS TO ACHIEVE SUSTAINED ECONOMIC PROSPERITY AND INCREASE BUSINESS TAX BASE IN KEY TRANSPORTATION CORRIDORS AND DOWNTOWN. The following objectives are included in the proposed budget within the Development and Redevelopment Goal Area : • Improve customer service by implementing same-day permitting for certain basic building permits. • Continued implementation of business redevelopment strategies throughout the Highway 7 Corridor, especially at the intersections of U.S. 40 and M-7 highways, 1-70 and U.S. 40 highways, and the Downtown area. • Provide support for the Economic Development Council (EDC) and implement the EDC's strategic plan. • Continued implementation of GIS data and information on the Internet to enhance services to internal and external development-related customers. • Continued implementation of the Downtown Master Plan. • Promotion and marketing of downtown programs (Fac;:ade Improvement Grant Program, MCRC Chapter 353 Abatement and Permit reduction Programs) and the "Doing Business in Historical Downtown Blue Springs" guide. • Funding for new Water and Sewer Utility projects that support deployment of infrastructure to facilitate development of unserved sites. • Ongoing funding and support for Downtown Alive! with CDBG funds in the amount of $25,000. • $50,000 for Commercial Fac;:ade Grant Program. • Continue the recruitment of commercial, industrial, office and retail businesses. [ GOAL AREA] INTERNAL OPERATIONS &CITY WORKFORCE IDENTIFY OPPORTUNITIES AND DEVELOP STRATEGIES FOR ENHANCING THE QUALITY OF SERVICE DELIVERY TO BETTER MEET CITIZEN NEEDS AND EXPECTATIONS. • Complete renovation of City Hall to provide for better ADA accessibility, improved customer service, better utilization of existing space, and improved operational efficiencies. • Promote workplace safety and maintain safe working conditions through the activities of the Safety Committee. • Promote and support employees in making healthy choices in their work and home lives through the activities of the Wellness Committee. ( 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov.com 6 FISCAL YEAR 2018-19TOTAL BUDGET SUMMARY The proposed budget totals $69,971,102, representing an increase of 2.39% or $1,634,677 over the FY 2017- 18 adopted budget. This increase is primarily due to a full year of Parks Sales tax projects, and increases in personal services. Table B-1 Comparison of Proposed FY 2018-19 Total Budget to Adopted FY 2017-18 Total Budget by Category Category Adopted Budget Proposed Budget Percentage Percent of 2017-18 FY2018-19 Change Total Budget Personal Services $21,067,515 $22,475,421 6.68% 32.12"/4 Supplies and Materials $2,763,404 $2,844,606 2.94% 4.07% Contractual Services $17,325,702 $17,808.997 2.79% 25.45% Sub-Total OperatiOfll $41, 126,621 $43,129,024 4.79% 61.64% Debt Service $14,583,979 $14,641,789 .40% 20.93% Capital Outlay $2,629,756 $2,952,286 12.26% 4.22% Capital Improvements $9,966,070 $9,248,002 -7.21% 13.22% Total Budget $68,336,425 $69,971,102 2.39% 100.00% Table B-1a Comparison of Proposed FY 2018-19 Total Budget to Adopted FY 2017-18 Total Budget by Fund Fund Adopted Proposed Percentage Percent of Budget FY Budget FY Change Total Budget 2017-18 2018-19 General $ 25,549,338 $27,085,041 6.01% 38.71% Hotel/Motel Tax $ 145,000 $168,500 1621% 0.24% Public Safety Sales Tax $ 3,792,712 $3,712,501 -2.42% 5.31% Parks Sales Tax $ 1,604,150 $3,783,150 135.84% 5.41% Debt Service $ 2,222,265 $1,920,092 -13.62°/4 2.74% Capital Projects $ 6,051,200 $3,285,896 45.70% 4.70% TIF Capital Projects $ 6,341,115 $7,367,368 16.18% 10.53% Fieldhouse $ 935,696 $1 ,150,393 22.95% 1.64% Golf Course $ 2,226,680 $1,729,561 -22.33% 2.47% Water $ 10,153,039 $10,275,987 1.21% 14.69% Sewer $ 9,303,220 $9,492.614 2.04% 13.57% Total Budget by Fund $ 68,336,425 $ 69,971,102 2.39% 100.00% General Fund: See page 9 of this memo for more details 16.18% to match the revenues in these funds that are on about the General Fund budget. payable to developers or for debt service. The increase Public Safety Sales Tax Fund: projected spending is primarily due to the addition of the debt service for the is 2.42% lower than the budget last year due to the White OakTIF. replacement of Public Safety software in the FY 2017-18 Golf Course Fund: the budget is decreasing by 22.33% budget. due to planned capital improvements funded by the Parks Debt Service Funds: the budget is down 13.62% in the Sales Tax that will be completed in FY 2017-18. debt service funds due to the refunding of the 201 2 Build Water Fund: the budget is increasing by 1.21 % primarily America Bonds. due to increased operating costs. Capital Projects Fund: the budget is 45.70% below last Sewer Fund: the budget is increasing by 2.04% due to year due to the renovation of the City Hall complex that increased operating costs. was included in the previous two years' budgets. Hotel/Motel: the budget is increasing by 16.21 % due to TIF Capital Projects Fund : the budget is increasing by planned maintenance and repair of the conference center. 903 West Main Street • Blue Springs, MO 64015 • (816) 228-011 0 • www.bluespringsgov.com 7 FISCAL YEAR 2018-19TOTAL REVENUE SUMMARY The proposed revenue budget totals $69,363,160 and along with the use of $607,942 of cash reserves totals $69,971 ,102 for planned expenditures. The use of cash reserves comes primarily from the Water, Sewer and TIF Capital Projects funds for capital improvements and debt service. Table B-2 Comparison of Proposed FY 2018-19 Total Revenue Budget to Adopted FY 2017-18 Total Revenue Budget by Category Category Adopted Proposed Percentage Percent of Budget FY Budget Change Total Budget 2017-18 FY 2018-19 Taxes $ 35,666,035 $ 38,206,388 7.12% 54.60% Intergovernmental $ 4,251,790 $ 4,380 ,861 3.04% 6.26% Charges for Services $ 2,004,028 $ 2,276,219 13.58% 3.25% Licenses and Permits $ 965,603 $ 1,100,498 13.97% 1.57% Fines and Forfeits $ 844,987 $ 1,041 ,390 23.24% 1.49% Interest $ 1,209,863 $ 1,292,703 6.85% 1.85% Golf Course Fees $ 1,474,776 $ 1,478,318 .24% 2.11% Utility Fees $ 17,907,593 $ 19,049,782 6.38% 27.23% Other $ 450,852 $ 536,999 11.68% .77% Cash Reserves $ 3,560,897 $ 607,942 -82.78% .87% Total Budget $ 68,336,425 $ 69,971 ,1 02 2.39% 100.00% Table B-2a Comparison of Proposed FY 2018-19 Total Budget to Adopted FY 2017-18 Total Budget by Fund Fund Adopted Proposed Percentage Percent of Budget FY Budget Change Total Budget 2017-18 FY 2018-19 General $ 24,008,968 $ 25,571,684 6.38% 36.55% Hotel/Motel Tax $ 586,855 $ 606,886 3.41% 0.87% Public Safety Sales Tax $ 3,619,746 $ 3,756,365 3 .77% 5.37% Parks Sales Tax $ 2,774,715 $ 3,783,150 36.34% 5.41% Debt Service $ 1,431 ,283 $ 1,296,086 -9.45% 1.85% Capital Projects $ 3,729,713 $ 3,958,082 6 .12% 5.66% TIF Capital Projects $ 6,537,273 $ 7,027,322 7.50% 10.04% Fieldhouse $ 898,309 $ 995,038 10.77% 1.42% Goff Course $ 1,476,680 $ 1,479,561 .20% 2.11% Water $ 10,010,526 $ 10,866,745 8.55% 15.53% Sewer $ 9,701.460 $ 10,022,242 3.31% 14.32% Use of Cash Reserves $ 3,560,897 $ 607,942 -82.78% .87% Total Budget by Fund $ 68,336,425 $ 69,971,102 2.39% 100.00% General Fund: See page 9 of this memo for more · increase by 7.50% from PILOTS and EATS generated details on about the General Fund budget. in TIF areas. Public Safety Sales Tax Fund: projected revenues are Golf Course Fund: revenues are projected to increase up by 3.77% due to growth in sales tax. by .20%. Debt Service Funds: revenues are down by 9.45% Water Fund: revenues are budgeted to increase by due to the elimination of the IRS subsidy for the Build 8.55% due to projected rate increases that will take America Bonds that were refunded. effect October 1 , 2018. Capital Projects Fund: revenues are up by 6.12% due Sewer Fund: revenues are budgeted to increase by growth in sales tax and CDBG funds.. 3.31 % due to projected rate increases that will take TIF Capital Projects Fund: revenues are projected to effect October 1, 2018. (._ 903 West Main Street • Blue Springs, MO 64015 • (816) 228-011 0 • www.bluespringsgov.com 8  FISCAL YEAR 2018-19 GENERAL FUND BUDGET SUMMARY Total budgeted expenditures and transfers in the General Fund are estimated at $27,585 ,041 , a decrease of $1,464,297 (5.04%) from the adopted FY 2017-18 expenditures and transfers. Tabl e B-3 Comparison of Proposed FY 2018-19 General Fund Budget to Adopted FY 2017-18 General Fund Budget - Category Adopted Proposed Percent of Budget FY Budget FY Percentage Operating 2017-18 2018-19 Change Budget Personal Services $ 17,210,623 $18,393,413 6.87% 67% Supplies and Materials $ 1,960,535 $1,996,921 1.86% 7% Contractual Services $5,788,229 $5,919,307 2.26% 21% Capital Outlay $ 589,950 $775,400 31.43% 3% Transfers Out $3,500,000 $500,000 -85.7 1% 2% General Fund $29,049,338 $27,585,041 -5.04% 100% The proposed budget is balanced, appropriately maintains the General Fund reserve targets (as established by the City Council), and reflects the various fee and rate increases implemented during the past year in fee- based programs. All local taxes, including sales tax, property tax, and franchise fees, are maintained at current authorized levels or within legally established parameters authorized by state law, and as approved by the City Council. Personal Services: the budget is increasing by 6.87% or $1 ,182,790 due to planned employee raises and an increase in the cost of health insurance and workers compensation. Supplies and Materials: the budget is increasing by 1.86% or $36,386. Contractual Services: the budget is increasing by 2.26% or $131 ,078 primarily due to how the expenditures for the Senior Center grant are recorded. Capital Outlay: the budget is increasing by 31.43% or $185,450 due to an increase in planned capital outlay expenditures. This executive summary includes only a few of the highlights of the entire budget. Other notable and significant budgetary changes are provided in the department budget summaries for each department and program. 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov.com 9 FISCAL YEAR 2018-19 GENERAL FUND REVENUE SUMMARY Table B-4 ( Comparison of Proposed FY 20 18-19 General Fund Revenues to Adopted FY 2017-18 General Fund Revenues r Revenue Source Adopted Proposed Percent Percent of Budget FY Budget FY Change Total Budget 2017-18 2018-19 j Taxes $ 17,359,733 $ 18,110,534 4.32% 65.65% Administrative Charges $ 1,930,456 $ 1,930,456 2.98% 7.42% Licenses and Permits $ 965,603 $ 1,100,498 13.97% 7.00% Other Government Sources $ 3,208,913 $ 3,310,412 3.16% 12.00% I Charges for Services $ 1,111,964 $ 1,311 ,174 17.92% 4.75% Fines and Forfeits $ 840,179 $ 1,037,647 23.50% 3.76% Interest Income $ 97,518 $ 205,096 110.32% 0.74% Other $ 425,058 $ 496,322 9.07% 1.80% I Transfers In $ 79,913 $ 82,903 3.74% .30% Total General Fund Revenues $ 26,019,338 $ 27,585,041 5.90% 100% General Fund revenues are projected to increase by 5.90% or $1 ,565,703. This is the first in many years where revenues are budgeted to increase by a significant amount. Taxes: General Fund taxes are projected to increase by 4.32% or $750,801 due to growth in sales taxes and ( franchise taxes. Licenses and Permits: General Fund licenses and permits are projected to increase by 13.97% or $134,895. Other Government Sources: General Fund other government sources are projected to increase by 3.16% or $101,499 primarily due to an increase in CDBG funds for next year. Charges for Services: General Fund charges for services are projected to increase by 17.92% or $199,210. Fines and Forfeits: General Fund fines and forfeits are budgeted to increase by 23.50% or $197,468 due to growth in Municipal Court fines. Interest: General Fund interest income is projected to increase by 9.07% or $107,578. Other Revenue: General Fund other revenue is projected to increase by 10.38% or $71,264 ( 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov.com 10 GENERAL FUND RESERVE INFORMATION The City's General Fund Reserve Policy is currently 20% of General Fund Projected fund balance, designation, and reserve information operating expenditures. In August of for the General Fund Ending September 30, 2018 2011, the City Council was asked to adopt a Governmental Fund Balance Policy that is in compliance with GASB • Nonspendable & Restricted S2.923.830 Statement No. 54. The adopted reserve calculation in the policy is based upon • 20% Emergency Reserve $5.261.928 the following goals: Total Fund • 10% Budget Stab1!1zat1on Reserve Balance 1. Compliance with GASB $2.630.964 $1 1,068,813 Statement No. 54 • Projected Unassigned Fund Balance 2. Provide the capacity to provide $205.750 sufficient cash flow for daily operating Other Assigned Funds needs $46,341 3. Secure and maintain investment grade credit ratings 4. Offset economic downturns or revenue shortfalls and provide funds for unforeseen expenditures related to emergencies According to the policy, the annual calculation is expected to generate an emergency reserve equal to 20% of General Fund operating expenditures (total General Fund expenditures excluding capital outlay and operating transfers) and a budget stabilization reserve of 10%. The emergency reserve amount for the FY 2018-19 budget year is estimated at $5,261,928 and the budget stabilization reserve is estimated at $2,630,964. The above graph provides additional projected fund balance, designation, and reserve information for the General Fund. The Unassigned Fund Balance changes each year and is subject to fluctuations in the City's financial condition during the course of the fiscal year (i.e. , changes in revenue projections and expenses, unforeseen expenses, emergency situations, etc.) During the 2017-18 FY, the City Council approved use of the budget stabilization fund to purchase land that was used in an incentive plan to attract a new business to the City. It was the goal of the Council to replenish the budget stabilization fund as soon as possible. This is expected to be accomplished during the current fiscal year with revenues that exceed budget and expenditure savings. PERSONAL SERVICES Total salaries and personnel costs are estimated at $22,475,421 and comprise approximately 32.12% of the total budget and 68% of the General Fund budget, where most employee costs are funded. There are several changes to the personal services budget that result in an overall increase of $1,407,906 in FY 2018-19, a 6.68% increase from FY 2017-18. 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov. com 11  Table B-5 Comparison of Proposed FY 2018-19 Personal Services Budget to Adopted FY 2017-18 Personal Services Budget Adopted Budget FY Proposed Budget FY Doll.tr Percent Pe rcent of ( Account 2017-18 2018-19 Ch.tnge Ch.tnge Tot.ti Budget Full-Time Salaries S 13 820 431 s 14,309 456 489 025 3 5d0 o 63 67°·0 Part-Time Salanes s 932 454 s 949 876 17 422 1 87% 4 23% Overtime s 553 226 s 673 726 120.500 21 78°,o 300% FICA s 960.373 s 993 101 32 728 3 41% 442% lv'led1care s 224.616 s 232 659 8 043 3 58°·0 1 04% LAGERS s 940 067 s 996.995 56928 606% 4 44% Deferred ComoensatJon s 243 165 s 250 864 7 699 317% 1 12% Health Insurance s 2.318 833 s 2 656 787 337 954 14 57°'0 11 82% Dental Insurance s 143.319 s 150 414 7 095 4 95°·0 0 67°0 LJfe Insurance s 69776 s 70 614 838 1 20°,0 0 31°0 Vision Insurance s 28 598 s 30 409 1 810 6 33°'0 0 14°0 Health Sal/lnos Account s 91 800 s 118 800 27 000 29 41% 0 53°0 EAP s 5924 s 6 042 117 1 98% 003°0 Unemolovement Insurance s 50000 s 50000 - 0 00°,0 022% Worker's Comoensat1on Insurance s 684 932 s 985 678 300 746 439 1°0 4.39% Tot.ti $ 21 ,067,515 s 22,475,421 1,407.906 6.68% 100.00% NON REPRESENTED EMPLOYEES This budget continues year six of the longevity plan where all full-time and part-time employees will receive a 2.5% pay increase at each 5-year service anniversary. The 2.5% is added to employee base salaries and effective October 1, 2018 may result in a lump sum payment if the employee is at the maximum of their pay range. The budget includes funds for a 2% across the board raise effective in April 2019. ( REPRESENTED EMPLOYEES (FOP) The only employees represented by a collective bargaining unit are in the Police Department. The Fraternal Order of Police (FOP), Western Central Missouri Regional, Lodge #50 represent three bargaining units including Police Officers, Sergeants, and Lieutenants. We have just concluded a three-year agreement and are currently negotiating with the FOP for a new agreement. Because the negotiation process had just begun at the time of the budget submittal, the details of a compensation plan and salary increases are not yet known. However, City Administration is confident that the City bargaining team and the FOP will be able to reach an agreement and implement mutual compensation/benefit goals. As a result, the budget proposal allocates a lump-sum for future raises that will be based on the outcome of the negotiation. Table B-6 Proposed Full-Time Equivalents for FY 2018-19 Last year a position in the Municipal Summary of Full-Time Equivalents: Court was reassigned to the 318.64 Adopted 2017-18 Budget FTEs Prosecuting Attorney's office in order Department Poslbon FTE Changes to comply with Supreme Court Order Human Resources PT Risk Manangement to FT 05 37. The impact of this reassignment on Municipal Court Deputy Court Clerk 1 Fieldhouse Adjust Part-hme Posihons to Actual -6.64 court operations requires a position be -5.14 Subtotal FTE Proposed Changes added back to the court staff. Proposed Budget 2018-19 FTEs 313.50 A part-time risk management position was added to the Human Resources budget last year and is being changed to full-time in next year's budget and will be supported in total by the Midwest Public Risk Loss Control Fund Program. This position handles claims for , property, liability, and workers compensation and repairs to City property. 903 West Main Street • Blue Springs, MO 64015 • (81 6) 228-0110 • www.bluespringsgov. com 12  CAPITAL IMPROVEMENTS PROGRAM The CIP guides the City in the planning, scheduling, and budgeting for maintenance, replacement, and major improvements related to City assets and infrastructure. It outlines expenditures, allocates existing funds, and anticipates future revenues to rehabilitate, restore, improve, and add to the City's infrastructure. Each year, City staff, in conjunction with the CIP Review Committee, Community Development Block Grant Advisory Committee, and City Council, develops a CIP forecast for the next five fiscal years. The process begins in December each year and usually concludes in late spring with its adoption by the City Council. This year's CIP was adopted by the City Council on May 7, 2018. The proposed CIP for FY 2018-19 through 2022-23 identifies many potential CIP projects totaling over $139.1 million of which $45.8 million are funded and $93.4 million are unfunded. Although projects are recommended and adopted by the City Council each year, the CIP is only a proposed plan and may be adjusted following its adoption to reflect changes and emerging priorities of the City Council or changes in available funds. The adopted budget for capital improvements and outlay for FY 2018-19 recommends capital expenditures totaling $12,200,288. Highlights of the approved amount include: $2,800,000 for the Pavement Management Program; $347,000 for sidewalks, and $2.95 million for capital outlay. In addition, the Parks Sales Tax will fund $3.9 million in projects for FY 2018-19 and is forecasted to complete an estimated $15 million in projects over the five-year term of the sales tax. Table B-7 Proposed Capital Improvements and Capital Outlay for FY 2018-19 Improvement Type Adopted Proposed Percent of Budget Budget FY Capital FY 2017-18 2018-19 Budget Parks and Recreation $ 1,604,150 s 3,973,150 32% Public Safety $ 450,000 $ 0 0% Street Improvements and Eauloment $ 6,051,200 s 3,.285,896 27% Sanitary Sewer System $ 1,100,000 $ 1,160,200 10% Water System $ 760,720 $ 828,756 ?"lo Capital Outlay and Equipment $ 2,629,756 $ 2,952,286 24% Total Improvements $ 12,595,826 $ 12,200,288 100% Please see the CIP section for detailed information on the adopted CIP and page 24 in the budget document for a detailed list of capital outlay item. LONG-TERM FINANCIAL PLANNING The City continues to use the long-term financial planning model that was created in 2007 and in addition has added the OpenGov platform for financial transparency with the citizens. These tools allow the City to forecast revenues and expenditures and monitor financial trends over time. Additional information about the planning model can be found on page 399 and OpenGov can be viewed on the City's website. 903 West Main Street • Blue Springs, MO 64015 • (816) 228-011 0 • www.bluespringsgov.com 13 The Government Finance Officers Association (GFOA) recommends that long-term financial planning include all appropriated funds. The Water and Sewer funds long-term plans are updated every three years when a comprehensive rate study is completed. City staff relies heavily on budgeting best practices from the GFOA and this budget continues to long tradition of utilizing their input and feedback to make a budget processes and systems more effective. CONCLUSION I sincerely appreciate the opportunity the Mayor and City Council have afforded me to serve you and this community as City Administrator, and to present to you an annual budget plan that balances the resources available, while responding to your priorities and areas of focus for FY 2018-2019 and beyond. The FY 2018-19 proposed budget again reflects a prudent and realistic approach with an emphasis on maintaining existing services, investing in our workforce and facilities, and maintaining capital assets. The development of this proposed budget was again challenging as our entire team was asked to maintain current service levels while trying to enhance other areas of the budget, including increasing costs in the area of employee benefits; such as employee wages to help us remain competitive in the market place, health care, retirement. and workers compensation. Increases in fixed costs, volatility in franchise revenue, the inability to capture sales tax for online retail purchases and ongoing unfunded State and Federal mandates continue to divert resources that could otherwise be used to advance other important community initiatives. Nevertheless, each year I am amazed at the diligence and creativity of all Departments who rise to the budget challenges and find ways to continue to deliver exceptional services and programs to our citizens, business, and visitors. We have several challenges ahead of us as we try to develop the most appropriate municipal funding strategies as many of our historical funding sources continue to change and fluctuate. I remain confident that our dedicated and highly professional staff will look at new opportunities for innovation, process improvement, partnerships, shared services, and other budget efficiencies to address the ever changing local government landscape. I am extremely grateful for the continued hard work and positive spirit of City employees as they provide quality programs and services to the community. This budget represents the continued dedication and commitment of our employees to serve this great community. I want to personally acknowledge the hard work of all the staff who worked so diligently and tirelessly on the preparation of this proposed budget for submission to you, especially Assistant City Administrator Christine Cates and Budget Analyst Lori Turner. Not only do they do a fantastic job managing the overall budget process but this year they had the added responsibility of implementing a new budget module through OpenGov which, presented a few new complexities throughout the process. l 903 West Main Street • Blue Springs, MO 64015 • (816) 228-0110 • www.bluespringsgov.com 14  ON THE RADAR 1. City Charter Review on the April 2019 ballot. 2. The implication of the U.S. Supreme Court Decision regarding Use Tax. 3. State-wide gas tax on November 2018 ballot with funds to be allocated to streets and roads. 4. Continued implementation of the Parks Sales Tax. 5. The renovation and completion of City Hall. 6. Results of the 2018 Citizen's Survey. 7. Re-purposing of the Municipal Annex and gas station. 8. Downtown Community Improvement District (CID) collaboration with the City and Downtown Alive! ,. . . ~ 9. Trends with the current "robust" housing f7 . market. 10. 2018-2020 will be a reevaluation of the market for healthcare, worker's compensation and property casualty coverage. PUBLIC WORKS PUBLIC SAFETY/CYOU 11. The separation of the Municipal Court with the Prosecuting Attorney's office and other FIELDHOUSE unfunded mandates. , , , rPLN2~ &~@ rnrn~rnrn&'lJ1J®~ 12. 5-year update to the Strategic Framework that ,, ~rPrnrn DM\[ill will begin in late 2019/early 2020. IBrn~•®rn ~rn~vrnm 13. The creation of a new economic development BUILDING MAINTENANCE strategy and leveraging current successes. GOLF COURSE 14. Conference Center Building Maintenance WATER UTILITY (exterior, roof, HVAC). ~~m (!!J'ffi]lliTiiW 15. Water/Sewer rate study scheduled for summer 2019. t I I HOTEL/MOTEL ' I I CAPITAL OUTLAY , , (fLi,\[p!ITf&11. •lMllPill®~rn~ @rnIB'D' IBrnmw•@  1 BLU261 ~~,9 FISCAL X~AHDBUD Total Budget: $69,971,102 (increase of 2.39%) Total General Fund Budget: $27,585,041 (decrease of 5.04%) Total Capital: $12,200,288 (decrease of 3.14%) Total Debt Service: $14,641,789 (increase of .40%) Major Revenue Sources (overall GF revenues are projected to increase by $1,565,703 or by 5.90%) a) Sales tax is projected to increase by 4.37% over the 2018 adopted budget and increase by 2.08% over the 2018 year- end projections. b) Property tax is projected to increase by 6% and remain flat with the 2018 year-end projection. c) Licenses and permits are expected to increase by 134,894 or 14% from the adopted 2018 budget and increases by $127,936 or 13.15% over the 2018 year-end projection. d) Other income increases by 11.68% or $86,147. e) Interest income increases by 68.85% or $82,840. Operating Expenses a) General fund operating budget increases by 6.01% or $1,535,703. The personal services budget increases by 6.87%, materials and supplies are increasing by 1.86% , contractual services increases by 2.26% and capital outlay increases by 31.43%. b) FTE's increase by 1.50 which adds one Deputy Court Clerk to Municipal Court and increases a part-time Risk Management position in Human Resources to a full-time position. Total FTE's are 313.5. c) Proposed salary increases for non-union represented employees is 0% to 2% in April 2019. Employee raises for the FOP bargaining unit are subject to negotiation and that process is ongoing at this time. All raises are contingent on adequate General Fund revenues. d) Health insurance costs are increasing by 14.57% and workers compensation premiums are increasing by 43.91%. e) Maintain key services and quality of life programs. f) Continued allocation of CDBG as prioritized by the Council for first-time home-buyers, p roperty maintenance, and infrastructure with emphasis on investing in the Downtown District. g) All reserves, contingencies, and designated accounts are still maintained at required levels and approved City Council policies. Capital Improvements (consistent with the plan adopted by the Council on May 7, 2018) a) Resumes funding of the Street Pavement Maintenance Program at $2.8 million. b) Continues with the second full year of funding Parks deferred maintenance projects at $3.9 million (a majority of this funding is going to a comprehensive renovation at Burrus Old Mill Park. c) Allocation of $347,000 for the third year of the sidewalk maintenance program. d) $85,000 from the CDBG funds to support Downtown Blue Springs infrastructure renovation.