MINUTES

CITY COUNCIL MEETING

GLADSTONE, MISSOURI

MONDAY, FEBRUARY 8, 2010


ADJOURNMENT TO CLOSED EXECUTIVE SESSION


Mayor Carol Rudi opened the City Council Meeting to adjourn to a Closed Executive Session on February 8, 2010, at 6:00 PM. Councilmember Carol Suter made a motion to adjourn to Closed Executive Session pursuant to Missouri Open Meeting Act Exemption 610.021(1) for Litigation and Confidential or Privileged Communications with Legal Counsel, and 610.021(2) for Real Estate Acquisition Discussion, and 610.021(3) for Personnel Discussion. Councilman Mark Revenaugh seconded.


Roll Call Vote: All “aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, and Mayor Carol Rudi. (4-0).


Note: Mayor Pro Tem Les Smith was present at the Closed Executive Session.


Mayor Carol Rudi recessed the Closed Executive Session at 6:20 PM.


REGULAR CITY COUNCIL MEETING

7:30 PM



PRESENT: Mayor Carol Rudi

Mayor Pro Tem Les Smith

Councilman Mark Revenaugh

Councilmember Carol Suter

Councilman Barry McCullough

City Manager Kirk Davis

Assistant City Manager Scott Wingerson

City Counselor David Ramsay

Deputy City Clerk Diane Whitaker


ABSENT: City Clerk Cathy Swenson


Item 2. on the Agenda. ROLL CALL


Mayor Carol Rudi opened the Regular February 8, 2010, City Council Meeting at 7:30 PM in the Gladstone City Council Chambers, and noted that all were in attendance.


Council Meeting Minutes

February 8, 2010

Page 2


Item 3. on the Agenda. PLEDGE OF ALLEGIANCE.


Mayor Carol Rudi led the Pledge of Allegiance, in which all joined.


Item 4. on the Agenda. APPROVAL OF THE REGULAR JANUARY 25, CITY COUNCIL MEETING MINUTES.


Councilman Mark Revenaugh moved to approve the Regular January 25, 2010, City Council Meeting Minutes as presented. Councilman Barry McCullough seconded. The vote: All “aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0)


Item 5. on the Agenda. CONSENT AGENDA


Following the Deputy Clerk’s reading, Councilmember Carol Suter moved to accept the Consent Agenda as presented. Councilman Barry McCullough seconded. The vote: All “aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0)


Councilmember Carol Suter moved to adopt RESOLUTION R-10-04, accepting temporary construction easements from certain property owners in conjunction with the Mill Creel Sewer Improvement Project (SP1090). Councilman Barry McCullough seconded. The vote: All “aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0)


Councilmember Carol Suter moved to adopt RESOLUTION 10-05, authorizing the Agreement for Confinement of Prisoners with Clay County, Missouri. Councilman Barry McCullough seconded. The vote: All “aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0)


REGULAR AGENDA


Item 6. on the Agenda. COMMUNICATIONS FROM THE AUDIENCE.


There was no communication from the audience.


Item 7. on the Agenda. COMMUNICATIONS FROM THE CITY COUNCIL.


Councilman Barry McCullough expressed his thanks to the Public Works for their street work and said he is impressed.


Councilmember Carol Suter had no comments at this time.


Councilman Mark Revenaugh had no comments at this time.



Council Meeting Minutes

February 8, 2010

Page 3


Mayor Pro Tem Les Smith stated that he thought perhaps staff was working on the “dancing Statue of Liberty” at 68th and North Oak. Mayor Pro Tem Smith asked staff to research the sign ordinance restrictions about this and off-premise signs and “moving” signs. He asked for a recommendation on this issue.


Mayor Carol Rudi congratulated the Arts Commission for the excellent art show reception this past week. The variety of artwork was impressive with a very good crowd attending.


Item 8. on the Agenda. Communications from the City Manager.

Assistant City Manager Scott Wingerson stated that City Manager Davis was absent because he was caught in a blizzard coming home from Minnesota. Mr. Wingerson reported that City offices would be closed on Monday, February 15 for the Presidents’ Day Holiday.


Item 9. on the Agenda. RESOLUTION R-10-06, authorizing the City Manager to enter into an agreement between Gladstone and Builders Development Corporation (BDC) for professional housing and development services for the Neighborhood Stabilization Program Grant Category #3.


Mayor Pro Tem Les Smith moved to adopt RESOLUTION R-10-06, authorizing the City Manager to enter into an agreement between Gladstone and Builders Development Corporation (BDC) for professional housing and development services for the Neighborhood Stabilization Program Grant Category #3. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0)


Item 10. on the Agenda. FIRST READING BILL 10-01, establishing an ordinance prohibiting the violation of domestic orders of protection within the City of Gladstone, Missouri and setting forth penalties for such violations.


Councilman Barry McCullough moved to place Bill 10-01 on its First Reading. Councilmember Carol Suter seconded. The Vote All “aye” - Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0). The Clerk read the Bill.


Councilman Barry McCullough moved to accept the First Reading of Bill 10-01, Waive the Rule and place the Bill on its Second and Final Reading. The Vote All “aye” - Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0). The Clerk read the Bill.


Councilman Barry McCullough moved to accept the Second and Final Reading of Bill 10-01 and to enact the Bill as Ordinance 4.131. Councilmember Carol Suter seconded.


Discussion: Councilman Mark Revenaugh asked about the connection to enforce the law that is already on the books and is this relating to traffic laws. Why do we need an ordinance to enforce the law or is there not a law on the books.

Council Meeting Minutes

February 8, 2010

Page 4


Counselor David Ramsay stated that orders of protection are not in the law. Violations within Gladstone go to Circuit Court, and is appropriate with violent nature, but many are simply being people making phone calls, close proximity to another person, drive-by the house kinds of things, where our local court could move these things along more quickly. It would also move from the situation escalating into a more violent situation. County prosecutors have a heavy load and sometimes take several weeks to complete this process. Public Safety would like to be able to file in the lesser court to move forward more quickly.


Councilman Revenaugh stated this would allow our law enforcement to do this, which they previously did not have the authority to do.


Counselor Ramsay acknowledged yes, that is correct.


Roll call vote: “All aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Les Smith, and Mayor Carol Rudi. (5-0).


Mayor Carol Rudi stated that Bill 10-01 is enacted at Ordinance 4.131.


Item 11. on the Agenda. RESOLUTION 10-07, a resolution amending the 2010 annual general fund, combined water and sewerage system fund, transportation sales tax fund, and community center and park fund for the City of Gladstone, Missouri, and authorizing expenditures of funds.


(Please Note: Due to time constraints, Council and staff agreed to discuss Open Study Session #4 on the Mid-Year Budget under Item 11. on the Regular Agenda.)


Finance Director Debra Daily stated that she would summarize the Study Session; staff has been going through the review and not trying to reset budgets because there are accounting measures and special circumstances. They are holding the line and will focus primarily on Exhibit 1 and 3. Ms. Daily covered the highlights of the Mid-year Budget Study Session which is included in its entirety below.

Council Meeting Minutes

February 8, 2010

Page 5






OFFICE OF THE CITY MANAGER

MEMORANDUM KLD #10-14




DATE: FEBRUARY 4, 2010


TO: CAROL RUDI, MAYOR,

LES SMITH, MAYOR PRO-TEM

MARK REVENAUGH, COUNCILMAN

CAROL SUTER, COUNCILMEMBER

BARRY MCCULLOUGH, COUNCILMAN


FROM: KIRK L. DAVIS, CITY MANAGER

DEBRA DAILY, DIRECTOR OF FINANCE DD


RE: STUDY SESSION ITEM #4

2010 MID-YEAR BUDGET REVIEW

The mid-year budget review for Fiscal Year 2010 (FY10) is complete and hereby submitted to the City Council for review, modification if necessary, and approval. Completing a mid-year budget review provides an opportunity to review budget projections, economic trends, make GAAP accounting adjustments, and adjust budgeted funding levels based upon unique circumstances that may arise during the first six months of a fiscal year. This memorandum and attached documentation will provide information concerning the General Fund, Community Center and Parks Tax Fund, Combined Water and Sewerage System Fund (CWSS), Capital Equipment Replacement Fund (CERF), as well as the Capital Improvements Program Funds. Budgets adjustments are required for the General Fund, CCPT, CERF, and CWSS and are detailed in this memo.


Executive Summary

The FY10 budgets originally projected in all funds were set conservatively due to the recessionary economy. Few adjustments were required at midyear to maintain balanced budgets. Original expenditure levels budgeted in the General Fund at re-appropriations and during the original FY10 budget process have been maintained despite the high costs of snow removal so far this winter. Nonetheless, a budget amendment will still be required in order to maintain statutory budget authority under GAAP accounting principles. Details are provided in the General Fund portion of this memo. Budget amendments will also be required for CWSS, CCPT, and CERF. Capital Improvement Program budgets will not require a budget adjustment. Complete details on all required budget adjustments are provided in the following memo.


Council Meeting Minutes

February 8, 2010

Page 6


Costs will continue to increase from current levels for personnel, operations (electricity, fuel, general supplies, technology, postage), required capital purchases, and finally overall program costs that make Gladstone “distinctive” and a great place to live. Fortunately, the City has done an excellent job of pre-recession planning by establishing new revenue sources and controlling operational expenses. Although a balanced mid-year budget is presented, we must continue to encourage and seek additional program efficiencies, revenue enhancement, new investment in our community, be financially creative, and focus on redevelopment.



GENERAL FUND


Revenues

The General Fund revenue structure consists primarily of property tax, sales tax, gross receipts tax, intergovernmental revenues, and charges for services (77% of total revenues). Overall, the total original revenue projection of $16,691,216 will remain unchanged except for the required accounting treatment of the AJ Farm Loan previously approved by Council. The loan proceeds ($350,000) must be added as revenue in FY10. Correspondingly, there will be an offsetting expenditure recorded as a transfer to the AJ Farm LLC.

Within each different revenue category - there were revenue shortfalls and corresponding increases that offset the shortfalls. See Exhibit 1 below. The breakdown of changes within each revenue category will be provided in the following narrative. Also reference Appendix A for a complete summary of the General Fund.


Exhibit 1

Council Meeting Minutes

February 8, 2010

Page 7


Property tax revenues have decreased from original budget projections by 1.7%, or $55,591 due to decreased delinquent tax collections. A portion of the decrease can be attributed to a delinquent tax collection project in FY09. This resulted in accelerated delinquent tax collections of $ 29,000 that was originally budgeted to be received in FY10.


Valuations and general tax collections are generally on target with projections. However, the last reassessment in FY09 did not capture the full effect of foreclosures and reduced real property values. Therefore the FY11 reassessment year may see additional real estate valuation decreases due to foreclosures that would negatively impact property tax collections. There will also be a decline in personal and business property valuation because purchases have been delayed and accelerated depreciation will combine to decrease related valuations as well.


Sales tax collections since FY01 have shown a steady decline. In FY07 a slight increase occurred and continued into FY08. See Exhibit 2. Actual sales tax collections in FY08 amounted to $3,411,799 or $178,098 above projections indicating a good retail sales base. However, economic pressures in FY09 & FY10 have once again shifted the trend downward. Sales tax revenue receipts started the year well behind projections but began to stabilize in October of 2009. FY10 sales tax collections are projected to be $3,126,000. This is $9,300 or .3% below original estimates of $3,135,300. Reflected in current sales tax collections is a one-time sales tax receipt from the State amounting to $47,357. This was a result of a tax audit on motor vehicle sales conducted by Finance. Excluding this one time receipt, sales tax revenues are down 2% from projections but are stabilizing.


Exhibit 2

Gross receipts taxes from the electric and gas utilities are highly affected by seasonal weather patterns and recent numerous rate adjustments. Electric, natural gas, wireless, and telecommunications franchise fees are projected to remain on target for the remainder of FY10. Cigarette taxes are projected to decrease $12,000 while cable TV is anticipated to increase by $20,000 based on current receipts to date. Overall, gross receipts taxes are expected to increase by $7,300 over original estimates.


The revenue category of License and Permits decreased substantially in FY09 due to the housing market downturn and sub-prime correction. FY10 revenues were projected conservatively as well. Overall, projections are generally on target from a current budget perspective with the exception of Public Safety Inspection programs projected to generate $11,675. The start up of these inspection programs were anticipated in the FY10 budget but these programs have been delayed. As a result, total licenses and permits are expected to decrease $11, 073 over original budget of $386,650.


Intergovernmental revenue is projected to be mostly on target with a small decrease of $6,424 in total revenue to $1,141,622. This decrease is due to a reduction in motor vehicle sales tax. The three largest revenues in this category are gasoline tax, motor vehicle sales tax, and vehicle registration fees. Gasoline tax is distributed based on the City’s population percentage in relation to the State. Gasoline prices also affect consumption. Motor vehicle sales tax and vehicle registration fees are influenced by the low financing interest offers, and rebates incentives. All types of revenues in this category are particularly sensitive to the current recessionary trends and continue below pre-recession levels as anticipated and budgeted.


Charge for Services include administrative services, ambulance billing, animal control fees, brush disposal, and Parks and Recreation programs. These charges are projected to decrease $114,235. The majority of this decrease, or $50,000, is from ambulance billing services. The reduced patient count at Woodbine has resulted in decreased ambulance runs and services to and from this facility. Other recreation program decreases ($26,450) and decreases in security services ($50,000) make up the balance of the projected revenue decrease. However, theses have corresponding expenditure decreases.


Fines and Forfeitures are estimated to increase a total of $49,000 over original projections to a total of $997,100. This increase is mainly due to increased traffic safety enforcement.



Expenditures

Presenting a balanced budget has been an ongoing challenge since FY01 and all Departments have successfully increased services without added cost increases. The original FY10 budget was set conservatively with few opportunities for any program or salary increases. Annual merit increases for employees were not funded. Instead each employee received a one time lump sum payment of $500 which was a big factor in maintaining budgetary cost controls. The result was a balanced budget during a severe economic downturn


As previously stated, the purpose of a mid-year budget is to provides an opportunity to review budget projections, economic trends, make GAAP adjustments, and adjust budgeted funding levels based upon unique circumstances that may arise during the first six months of a fiscal year. The unusually high snow removal costs to date in FY10 is the unexpected item this year. Salt inventories and related maintenance items therefore require funding at mid-year. Consequently, working with Departments, the Budget Team cut expenses in other areas to maintain the original approved operating budget levels. Many smaller actual cost increases went unfunded and absorbed into each Departments original budget. Details are provided and summarized in Exhibit 3. Also please reference Appendix A.


Total mid-year expected expenditures are $17,040,591 which is $350,000 more than originally budgeted. As explained in the revenue section above, the budget increase of $350,000 is the required pass through accounting treatment of the expenditure side of AJ Farm Loan previously approved by Council. Changes in expected expenditures are categorized by Department and explained in greater detail following Exhibit 3.


Exhibit 3

Expenditures by Dept





REAPPR BUDG

M.Y. BUDG

INCREASE/


2010

2010

(DECREASE)

General Administration

$ 1,118,751

$ 1,156,751

$ 38,000

Finance

1,404,843

1,404,843

-

Public Safety

7,136,236

7,079,921

(56,315)

Public Works

2,075,059

2,156,644

81,585

Community Development

807,200

826,428

19,228

Parks & Recreation

1,882,466

1,863,236

(19,230)

Debt Service/Transfers

1,383,454

1,383,454

-

Non-Departmental

882,582

1,169,314

286,732

TOTAL EXPENDITURES

$ 16,690,591

$ 17,040,591

$ 350,000



Mid-year budget adjustments are requested for General Administration, Public Safety, Public Works, Community Development, Parks and Recreation. Overall total expenditures for these Departments did not change except in Non-Departmental where the $350,000 AJ Farm Loan is fully expensed.


General Administration increased by $38,000 for the Community Health Program. This increase has a corresponding revenue increase funded by safety loss control dollars from Midwest Public Risk.


Public Safety decreases of $56,315 primarily come from the $50,000 reduction over the original budget for providing off duty security services to Walmart.


Public Works budget increased by $81,585 primarily for costs relating to snow removal and the expense ($70,000) of replenishing salt inventories.


Community Development increases totaling $19,228 are needed to cover costs for a dangerous building demolition ($13,244) and increase weed mowing due to the wet summer and the larger number of related code infractions ($ 6,344).


Parks and Recreation primarily decreased expenditures by $19,228 by delaying the replacement of a generator for city Hall ($10,000) and reducing the contractual costs for programs by $8,000. This item had a corresponding revenue decrease.


Non-Departmental expenditures actually decreased by $63,268 since the expected budget for employer paid benefits came in slightly under projections. Non-Departmental is also where the $350,000 AJ Farm Loan expenditure was recorded. To clarify, $350,000 less the budget decrease of $63,268 equals $286,732 as shown in Exhibit 3.


In summary, the Budget Team has worked with Departments to manage costs and present a balanced budget that reflects serious consideration of required cost increases, revenue adjustments, while still maintaining the original budget level. The FY10 Mid-Year Budget shows a net income of $625 and exceeds the 20% required fund balance by $15,702.



COMMUNITY CENTER AND PARK TAX FUND


Revenues and Expenses

The Community Center and Park Tax Fund (CCPT) was created as a Special Revenue Fund. Community Center activities, Natatorium activities and Municipal Pool activities are accounted for within this fund. This fund structure allows expenditures and revenues to be tracked to accommodate the City partnership with the North Kansas City School District. Budgeted revenues and expenditures have been adjusted as detailed in Appendix B.


Total revenues for this fund are projected to be $3,090,364 or $25,230 over original budget. However, due to the receipt of estimated insurance claim proceeds for of the damage to the gym floor ($85,000) there is an actual projected decrease in revenue of $59,770. Sales taxes are down by $12,125 and reductions in charges for services and programs result in the balance of the estimated revenue reduction.


Total expenditures are expected to be $3,076,108 which represents an increase of $11,412. Once again, the full expense of the gym floor replacement or $85,000 is included in this total. Therefore, expenditures actually decreased by $73,588 in direct response to reduced operational costs related to decreases in revenue from charges for services and programs.


Net income for FY10 is projected to be $14,256. FY10 beginning balance was $1,468,048 and FY10 projected ending balance for the CCPT Fund is estimated to be $1,388,304.



CAPITAL IMPROVEMENT PROGRAM


The City Council, Capital Improvements Program Committee, and Staff all have a significant role in planning the improvements to be constructed with Capital Improvement Sales Tax (CIST) and Transportation Sales Tax (TST) funds. The Capital Improvement Sales Tax Fund and the Transportation Sales Tax Fund are responsible for capital projects pertaining to buildings, stormwater, parks, streets, curbs, gutters, and debt service payments.


To ensure that there is sufficient budget authority to complete all projects each year, budgets are reviewed at Mid-Year. Any project budgeted in a previous year but not completed by year end, or any new projects added will require a budget increase and a corresponding revenue or equity adjustment be added to the budget to fund the additional expense which is consistent with accepted accounting practices. These budget adjustments ensure statutory budget authority and compliance each year.


In the CIST Fund the original expenditure budget was set at $2,359,735. Projected FY10 Mid Year Budget is $2,192,151. No budget adjustment is necessary. See Appendix C.


In the TST Fund the current expenditure budget amounts to $4,984,000. Projected FY10 Mid Year Budget is $4,658,517. No budget adjustment is necessary. See Appendix D.


CAPITAL EQUIPMENT REPLACEMENT FUND


The Capital Equipment Replacement Fund (CERF) was established in FY2001 to fund the purchase of capital items. Since inception, any excess of revenues over expenses in General Fund, after meeting the required 20% fund balance, has been placed in this fund. Recent legal settlements from the wireless companies have been also added to this fund. Each year capital equipment purchases and debt service on capital items have been either funded directly or leveraged from interest earnings on the fund balance in this fund. Currently, CERF has an expected fund balance of $3.3 mil. Please reference Appendix E.


The current land loan funded through First Bank of Missouri has been used to purchase land for the economic development purposes. City Management suggests paying off the land loan and interest estimated at $1,300,000 from CERF. Currently, interest earning rates range from .025% to .95% as of January of this year. However, interest paid on this land loan is currently 4%. Interest rates on the debt side will continue to increase at a much faster pace than the investment side. Consequently, the Budget Team recommends an increase of $1.3 mil in the CERF FY10 Budget to pay off the Land Loan and related economic development expenses.


COMBINED WATERWORKS AND SEWERAGE SYSTEM FUND


Revenues and Expenses

FY09 and FY10 have proven to be a real challenge for the financial operations of Combined Waterworks and Sewerage (CWSS) Fund. FY10 operating revenues are projected to decrease by $200,236 compared to projected budget. This decrease is based on current water sales thru December in CWSS. Water usage continued to decrease dramatically especially during the summer to levels substantially below established water usage trends even after adjusting for historically low water usage in FY09. The economy also continues to impact water usage. Available reserves of $56,813 and expense cuts totaling $127,078 were utilized to balance the budget. Based on GAAP accounting principles, the CWSS Fund must also record the Mill Creek Project loan proceeds of $1mil as well as the offsetting capital expense ($1 mil) for this project. Please reference Appendix F for a summary of revenue and expense adjustments for all divisions in CWSS.


Total adjusted expense budget for FY10 is $7,850,470. Expenses were adjusted to reflect the decrease of $127,078 before including the Mill Creek Project expense. This is the actual expense decrease required to balance the budget. This decrease is a result of expense cuts across all divisions. Personnel costs were reviewed and adjustments were made in overtime and wages for positions that remained open for any period of time during the hiring process ($25,000). The largest cut amounting to $50,000 was from a reduction in water line replacements leaving $225,000 for FY10 projects. In addition, all line expense line items were reviewed for possible savings and adjustment to any expense item that would not directly impact required services. This review resulted in cuts totaling $52,078. Costs for chemicals continue to increase so decreased water production has not resulted in any substantial savings for chemicals. With these cuts, a balance budget was achieved.


The CWSS Fund is projected to end the year with net income of $13,575 and projected retained earnings of $1,290,725 which meets the 20% fund balance requirement.



SUMMARY


Each fund was analyzed by Departments and Budget Team to develop the recommended budget adjustments. Through continued monthly reviews, all Funds are expected to balance for the remainder of this fiscal year.


The City Council Agenda contains a Resolution, which will amend the General Fund, Combined Waterworks and Sewerage System Fund, Community Center and Park Tax Fund, and the Capital Equipment Replacement Fund budgets to reflect the recommendations presented in this memorandum. Finance Director Daily has prepared a variety of appendix summary pages reflecting the results of the Mid-Year Budget Review. Please see the attached information. If you have any questions please feel free to contact Finance Director Daily or myself at your convenience.








APPENDIX A

GENERAL FUND



STATEMENT OF REVENUES & EXPENDITURES




ACTUAL

REAPPRO BDGT


MIDYEAR




2009

2010


2010


Variance

Revenue Sources







Property Tax

$ 3,525,961

3,342,128


3,286,537


(55,591)

Sales/Use Tax

3,121,082

3,135,300


3,126,000


(9,300)

Gross Receipts Tax

3,449,783

3,165,700


3,173,000


7,300

Licenses & Permits

484,876

386,650


375,577


(11,073)

Intergovernmental

1,257,246

1,148,046


1,141,622


(6,424)

Charges for Services

2,535,949

2,591,061


2,476,826


(114,235)

Fine & Forfeitures

1,006,633

948,100


997,100


49,000

Misc. Revenue & Transfers

1,325,094

758,023


1,248,346


490,323

Operating Revenues

16,706,624

15,475,008


15,825,008


350,000

Equity Transfer

-

1,216,208


1,216,208


-

TOTAL REVENUE

$ 16,706,624

$ 16,691,216


$ 17,041,216


$ 350,000

Expenditures







General Administration

$ 978,583

$ 1,118,751


$ 1,156,751


38,000

Finance

1,277,105

1,404,843


1,404,843


-

Public Safety

6,765,843

7,136,236


7,079,921


(56,315)

Public Works

2,013,405

2,075,059


2,156,644


81,585

Community Development

728,969

807,200


826,428


19,228

Parks & Recreation

1,828,529

1,882,466


1,863,236


(19,230)

Debt Service/Transfers

205,938

1,383,454


1,383,454


-

Non-Departmental

1,895,962

882,582


1,169,314


286,732

TOTAL EXPENDITURES

$ 15,694,334

$ 16,690,591


$ 17,040,591


$ 350,000








GENERAL FUND - ANALYSIS OF FUNDS AVAILABLE




2009

FY10 Reappro


FY10 MidYear




ACTUAL

BUDGETED


BUDGET










Beg Funds Available

$ 3,184,273

$ 4,196,563


$ 4,196,563



Revenues

16,706,624

16,691,216


17,041,216



Equity Adj

-

(1,216,208)


(1,216,208)



Net Funds Available

19,890,897

19,671,571


20,021,571



Expenditures

(15,694,334)

(16,690,591)


(17,040,591)










Net Income (Loss)

1,012,290

625


625










Ending Funds Available

$ 4,196,563

$ 2,980,980


$ 2,980,980



20% Fund Balance Req


2,965,279

#

3,408,118



Over (Under) Fund Bal Req


$ 15,702


$ 15,702











 

 

 


APPENDIX B

COMMUNITY CENTER PARKS SALES TAX FUND

 

STATEMENT OF REVENUES & EXPENDITURES

 

 

ACTUAL

REAPPRO BDGT

MIDYEAR BDGT

 

 

2009

2010

2010

Variance

Revenue source:

 

 

 

 

Community Center/Natatorium

 

 

 

 

Sales Tax

$ 727,075

$ 731,500

$ 719,375

(12,125)

Charges for Services

925,825

1,106,584

1,055,212

(51,372)

Rents & Royalties - Facility Rental

108,199

119,000

113,000

(6,000)

Other Misc Income

34,847

30,263

133,990

103,727

NKC Operating User Fee

125,000

125,000

125,000

-

Total Comm Ctr/Natorium

$ 1,920,946

$ 2,112,347

$ 2,146,577

$ 34,230

Outdoor Pool

 

 

 

 

Charges for Services

$ 159,461

$ 209,487

$ 195,487

$ (14,000)

Other Misc Income

6,338

6,800

6,800

-

Total Outdoor Pool

$ 165,799

$ 216,287

$ 202,287

$ (14,000)

Total Operating Revenues

$ 2,086,745

$ 2,328,634

$ 2,348,864

$ 20,230

NKC Capital User Fee

$ 525,000

$ 525,000

$ 525,000

-

Misc Revenue

32,685

17,500

22,500

5,000

InfrastructureTransfers

200,000

100,000

100,000

-

Equity Transfer

-

94,000

94,000

-

Total Non-Operating Revenues

$ 757,685

$ 736,500

$ 741,500

$ 5,000

TOTAL REVENUES

$ 2,844,430

$ 3,065,134

$ 3,090,364

$ 25,230






APPENDIX C

CAPITAL IMPROVEMENT SALES TAX FUND


 

ORIGINAL BUDGET

MIDYEAR BUDGET

Fund Balance, July 1, 2009 (Estimated)


$ 943,633

$ 1,086,019


Budgeted Revenue, FY 2010

1,615,000

1,695,964


Total Funds Available

2,558,633

2,781,983


Budgeted Expenditures, FY 2010

2,359,735

2,192,151


PROJECTED FUND BALANCE, June 30, 2010

$ 198,898

$ 589,832


 

 

 


 

 

 

REVENUE


 

 


Sales/Use Tax

$ 1,395,000

$ 1,395,000


Interest Income

15,000

23,000


Amph Comm Loan Pmt

5,000

5,000


Federal Stimulus - North Oak

200,000

272,964


TOTAL REVENUE

$ 1,615,000

$ 1,695,964

EXPENDITURES


 

 


Debt Service

$ 1,265,735

$ 1,265,735


Engineering Division Transfer

85,000

85,000


7409 N Highland stormwater

 

20,000


Misc. Storm Projects

50,000

50,000


Arts Council

14,000

14,000


N Oak Enhancement - 69/71 St

340,000

515,000


Central Park Amenities

100,000

3,226


Resurface tennis courts

60,000

60,000


Bolling Heights-construction

100,000

100,000


Bolling Heights-design

25,000

25,000


77th & Lydia-design

25,000

25,000


Replace playground - Happy rock East

70,000

 


76th & Lydia-Construction

200,000

 


Animal Control - Design

25,000

25,000


Pleasant Valley Road Survey

 

4,190


TOTAL EXPENDITURES

$ 2,359,735

$ 2,192,151






APPENDIX D

TRANSPORTATION SALES TAX FUND


 

Original Budget

Midyear Budget

Fund Balance, July 1, 2009 (Estimated)


$ 2,003,853

$ 1,797,171


Budgeted Revenue, FY 2009

3,087,250

3,031,847


Total Funds Available

5,091,103

4,829,018


Budgeted Expenditures, FY 2009

4,984,000

4,658,517


PROJECTED FUND BALANCE, June 30, 2009

$ 107,103

$ 170,501


 

 

 

REVENUE


 

 


Sales/Use Tax

$ 1,395,000

1,395,000


Property Tax - Local Transit

50,000

50,000


Property Tax - Sidewalks

50,000

50,000


Special Road District

-

-


Grants

1,567,250

1,494,347


Interest Income

25,000

42,500


TOTAL REVENUE

$ 3,087,250

$ 3,031,847

EXPENDITURES


 

 


Debt Service

$ 240,000

240,000


Engineering Division Transfer

85,000

85,000


ATA Payment

65,000

21,934


Local Transit

75,000

50,000


Gravel Approach Fund

25,000

25,000


Street Maintenance

400,000

335,277


Intermediate Maintenance Program

200,000

200,000


New Curb, Gutter, Sidewalk Program

300,000

225,000


ADA/Curbcut Sidewalks

100,000

100,000


Arterial Sidewalk Program

140,000

140,000


N Oak Turn Lane@ 76th St

675,000

675,000


M-1 Trail - Sta2 to Shoal Creek CMAQ

850,000

630,000



Frame1


Frame2

783,740


Shoal Creek/Ant Ped Bridge Conn.

751,000

 


North Broadway/Old Pike

378,000

387,566


N Central @ 70th

100,000

100,000


Curb & Gutter 67th St. (Oak to Grand)

100,000

100,000


Bicycle/Pedestrian Bridge @ M-1

 

250,000


2010 Overlay (2009 Phase 2)

 

310,000



 

 


TOTAL EXPENDITURES

$ 4,984,000

$ 4,658,517





APPENDIX E





Equipment Replacement Fund





Estimated Statement of Revenue & Expenditures

and Projected Fund Balance

for Fiscal Year 2010






Current

Expected

Projected

Fund Balance, July 1, 2009 Estimated

$ 2,018,352

$ 2,052,909

$ 2,052,909

Budgeted Revenue, FY10

234,000

1,465,303

1,465,303

Total Funds Available

2,252,352

3,518,212

3,518,212

Budgeted Expenditures, FY10

209,000

209,000

1,509,000

Projected Fund Balance, June 30, 2010

$ 2,043,352

$ 3,309,212

$ 2,009,212

 

 

 

 

 

 

 

 

 

 

 

 

 

Original Bdgt

Expected

Midyear Bdgt

 

2010

2010

2010

 

 

 

 

Revenue

 

 

 

 

 

 

 

Interest Earnings

$ 50,000

$ 50,000

$ 50,000

Taxes/Transfer

184,000

934,000

934,000

Other / AT&T Settlement

-

481,303

481,303

 

 

 

 

Total Revenue

$ 234,000

$ 1,465,303

$ 1,465,303

 

 

 

 

 

 

 

 

Expenditures

 

 

 

Land Loan

 

-

1,300,000

Transfer Out - General Fund

209,000

209,000

209,000

 

 

 

 

Total Expenditures

$ 209,000

$ 209,000

$ 1,509,000












APPENDIX F

COMBINED WATERWORKS & SEWER SYSTEM FUND


STATEMENT OF REVENUES & EXPENDITURES



ACTUAL

REAPPRO BDGT

MIDYEAR BDGT



2009

2010

2010

Variance

Revenue source:





Water

$ 2,910,191

3,119,905

2,908,611

(211,294)

Sanitation

3,195,498

3,563,563

3,531,586

(31,977)

Interest

44,506

30,000

37,000

7,000

Other income

274,714

294,000

330,035

36,035

Operating revenue

6,424,909

7,007,468

6,807,232

$ (200,236)

Use of Reserves

156,215

5,000

56,813

51,813

Loan Proceeds

194,731

-

1,000,000

1,000,000

Equity Transfer

-

-

-

-

TOTAL REVENUE

$ 6,775,855

$ 7,012,468

$ 7,864,045

$ 851,577

Expenditures:





Water Production

$ 898,285

$ 939,351

$ 913,101

$ (26,250)

Water Operations & Maintenance

555,168

645,298

651,948

6,650

Sewer Collection

272,069

359,929

365,304

5,375

Non-Departmental

3,490,861

3,798,936

3,799,536

600

Bond Requirements

773,838

828,781

828,781

-

Capital Outlay/Projects

785,634

405,253

1,291,800

886,547

TOTAL EXPENDITURES

$ 6,775,855

$ 6,977,548

$ 7,850,470

$ 872,922






CWSS - ANALYSIS OF FUNDS AVAILABLE


2009

2010 REAPPROP

2010 MID YEAR



ACTUAL

BUDGET

BUDGET


Beginning Unreserved Retained Earnings

$ 1,277,150

$ 1,268,880

$ 1,277,150


Equity Adjustment

-

-

-


Revenue

6,775,855

7,012,468

7,864,045


Expenses

(6,775,855)

(6,977,548)

(7,850,470)







Net Income (Loss)

(0)

34,920

13,575


Projected Ending Unreserved Retained Earnings

$ 1,277,150

$ 1,303,800

$ 1,290,725







20% Retained Earnings Requirement


1,232,674

1,290,605







Over (Under) 20% Retained Earnings Requirement


$ 36,206

$ 120


RESOLUTION NO. R-10-07


A RESOLUTION AMENDING THE 2010 GENERAL FUND, COMBINED WATER AND SEWERAGE SYSTEM FUND, CAPITAL EQUIPMENT REPLACEMENT FUND, AND COMMUNITY CENTER AND PARK TAX FUND FOR THE CITY OF GLADSTONE, MISSOURI, AND AUTHORIZING EXPENDITURES OF FUNDS.


WHEREAS, The Council of the City of Gladstone, Missouri has determined the need for additional appropriations and revenue in the above referenced funds.


NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLADSTONE, MISSOURI, AS FOLLOWS:


THAT, the General Fund, Combined Water and Sewerage System Fund, Capital Equipment Replacement Fund, and Community Center and Park Fund be amended as set forth below:


THAT, the City Manager of the City of Gladstone, Missouri be and he is hereby authorized to expend the amounts as shown in the Revised Budgets.


INTRODUCED, READ, PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GLADSTONE, MISSOURI THIS 8th DAY OF FEBRUARY, 2010


___________________________

Carol A Rudi, Mayor

ATTEST:

__________________________

G. Diane Whitaker, Deputy City Clerk

Finance Director Debra Daily asked if there were any questions at this time and if not, she wanted to bring up the sales tax holiday and the green sales tax issues. We had discussed moving forward with both of these sales tax issues at the same time instead of at the timeframe they are actually due. We have compiled a comprehensive analysis of other municipalities who opted out. The August “Back to School” sales tax holiday, we normally have participated in this. Initially we had three years of data and now have compiled six years of data comparison since the bill went into effect. We have comprehensive information with other municipalities who have opted out. Gladstone shows an average $3,361 reduction and for all funds, an annual reduction of $6,800. Over time, in the General Fund it amounts to $18,000 reduction in the last six years and the cumulative for all funds is $38,600. The action taken to participate is to take no action to participate. June 22 is the deadline, although the plan is for Council to make that decision at the February 22 Council meeting if Council desires as a housekeeping measure.


Director Daily stated that the green sales tax holiday “Show Me Green” was initiated in 2008 for appliances from April 19-25 for Energy Star appliances. From 2009 forward in April 19-25, during a seven day period, all sales tax are exempt on new Energy Star appliances. In this instance, municipalities Opt In, which is the opposite of the August “Back To School “sales tax and that deadline is March 4. We do not have the ability to pull out sales tax figures by exact product, but we do have a formula to consider and that we used last year. The amount of savings would be 4.25 % for state exemption and 2.25% savings for the City portion. For every $10,000 spent in Gladstone, the net tax effect would be $225. At $100,000 the net tax effect would be $2,250. A comparison with other municipalities has also been made on this sales tax issue for those who Opted In during FY2009. Director Daily asked if there were any questions on these issues.


Mayor Carol Rudi stated she did not find this material about these two items and it is a big surprise to her.


Assistant City Manager Scott Wingerson stated that Debra is preparing Council for these discussions in two weeks about Opting In and Opting Out so you can start thinking about the issues coming up at the February 22 Council meeting. Even though it was said information was provided, we mean that complete information will be provided for full discussion in two weeks and Council action.


Director Daily stated that this is a brief work session portion of it.


Mayor Carol Rudi asked, maybe more for the Council, when looking at the numbers on tax delinquencies, in a Council Study Session a while ago, we discussed options for resolving some of them, but decided to go on as we have. The numbers are not looking good, even if they are average for the metro area, it does not look good.


Councilman Mark Revenaugh asked if we could give someone additional fire-power to collect those taxes.


Director Daily stated that the only way to do that is to certify all delinquent taxes to the County which then give you authority, but we may have decided there was more thought needed for that Once certified to County, that is only personal property. On real estate, you always have the opportunity to take to the Courthouse steps type sale scenario. By granting authority to collect taking to the County, it must be certified and then becomes a public document at that point.


Councilman Revenaugh asked that we were unwilling to do that the last time around.

Director Daily said that is what she remembered. This is a bit of information relative to the real estate taxes. We just sent out delinquency notices and will have revenues coming in during February. Current real estate delinquencies are $150,000 at 5.8% and are predicting 4%. Personal property delinquencies is $66,000 which has not been paid. Business is at $25,000 running at 18-19% and that is just for 2009.


Councilman Revenaugh asked how these numbers line up historically.


Ms. Daily stated that based on previous years, 2008 the economy was starting to alarm her and most are good at paying, but from the personal property tax side there is not a lot of teeth in it and people know that and just don’t pay. We can have our collection policies as outlined previously. The economy is definitely having an impact on this, but Gladstone is doing a good job.


Mayor Pro Tem Les Smith asked what Woodbine’s plan is and how would that affect the assessed valuation. Debra stated that they lost their accreditation; they still have patients there and not sure how they can sustain business. She has not heard of what they actually will do, perhaps someone from staff has knowledge.


Assistant City Manager Scott Wingerson commented that there have been conversations with interested parties to purchase Woodbine. We are not sure if the current owner is in a position to sell, but there is someone willing to bring it back up to a full service home. Mr. Wingerson said he was not sure if that answered his question.


Mayor Pro Tem Les Smith said yes, providing services, then the next question is part of the questions would be for Director Mike Hasty regarding emergency transfer in ambulance and services provided. Do we have limitations on the type of services we provide for them.


Director of Public Safety Mike Hasty stated yes, we operate an emergency transport; MAST and MAR out of Independence handle other transport situations. Our transport runs must meet certain conditions and guidelines.


Mayor Pro Tem Smith stated he had a technical question and will go back a ways. He asked if CERF funds could pay for capital expenses such as at the Water Plant for example.


Director Daily said that it is set up to fund general fund types of things. She does not know if it could be. It is the excess of debt between revenues and expenses at the end of the year and tied to the general fund for operating purposes.


Mayor Pro Tem Smith asked Director Hasty what was the cost of the radios projected in the Public Safety analysis we received recently.


Public Safety Director Mike Hasty replied that it was just under $1.7 million.


Mayor Carol Rudi commented that if you look at the cigarette tax and water usage, the revenues are lower, yet we are encouraging sustainability. At the same time it is hurting us.


Debra stated that there is a double-edged sword with this and utilities are having the same issues. It is a re-alignment.


Mayor Rudi How do we fund what we are doing and encourage sustainability and other balanced practices.


Mayor Pro Tem Les Smith moved to adopt RESOLUTION R-10-07, amending the 2010 annual general fund, combined water and sewerage system fund, transportation sales tax fund, and community center and park fund for the City of Gladstone, Missouri, and authorizing expenditures of funds. Councilmember Carol Suter seconded. The vote: “Aye” – Councilman Barry McCullough, Councilmember Carol Suter, Councilman Mark Revenaugh, and Mayor Carol Rudi. “Nay” – Mayor Pro Tem Les Smith (4-1).


Item 12. on the Agenda. Other Business.

There was no other business to come before Council.


Item 13. on the Agenda. Questions from the News Media.

There were no questions from the News Media.


Item 14. on the Agenda. ADJOURNMENT.

There being no further business to come before the February 8, 2010, Regular City Council meeting, Mayor Carol Rudi adjourned the Regular meeting.


Respectfully submitted:


______________________________

G. Diane Whitaker, Deputy City Clerk



Approved as submitted: ___

Approved as corrected/amended: ___


______________________________

Mayor Carol A. Rudi