CITY OF SHAWNEE
COUNCIL COMMITTEE MEETING
May 17, 2016
(Shawnee Council Committee Meeting Called to Order at 7:00 p.m.)
|Councilmembers Present ||Staff Present|
|Councilmember Pflumm||City Manager Gonzales|
|Councilmember Neighbor||Deputy City Manager Charlesworth|
|Councilmember Jenkins||Assistant City Manager Killen|
|Councilmember Kemmling||City Clerk Powell|
|Councilmember Vaught||City Attorney Rainey|
|Councilmember Meyer||Finance Director Rogers|
|Councilmember Sandifer||Development Services Dir. Wesselschmidt|
|Councilmember Kenig (late)||Planning Director Chaffee|
|Fire Chief Mattox|
|Police Chief Moser|
|Parks and Recreation Director Holman|
|Public Works Director Whitacre|
|Human Resources Director Barnard|
|Stormwater Manager Gregory|
|Police Major Tennis|
|Police Captain Larsen|
|Police Captain Brimm|
|Police Captain Brunner|
|Deputy Police Chief Orbin|
|Sr. Accountant Oldham|
|Business Liaison Holtwick|
|Sr. Project Engineer Moeller-Krass|
|Planning and Research Manager Collins|
|Management Analyst Schmitz|
|Linda Leeper, Chamber of Commerce|
|Andrew Nave, Economic Dev’t Council|
|Kevin Fern, Visit Shawnee.|
A. ROLL CALL
COUNCILMEMBER MEYER: Good evening. Welcome to tonight's Council Committee meeting. My name is Stephanie Meyer. I am a Councilmember from Ward III and the Chair of this Committee.
Besides myself, the Committee members here tonight are Councilmember Neighbor of Ward I; Dan Pflumm, Ward I; Eric Jenkins, Ward II; Mike Kemmling, Ward II; Jeff Vaught, Ward III; and Mickey Sandifer, Ward IV.
Before we begin our agenda, I'd like to explain our procedures for public input. During the meeting I will offer the opportunity for public input. If you would like to speak to the Committee at any of those times, please go to the podium. I will ask that you state your name and address for the record, and you may offer your comments. So that members of the audience can hear your comments, I would ask that you speak directly into the microphone. By policy, your comments are limited to five minutes. After you are finished, please sign the form on the podium to ensure we have an accurate record of your names and addresses.
I would also like to remind Committee members to wait to be recognized and turn on your microphone when you would like to speak so we can get a clear and accurate record.
1. BUDGET PRESENTATION – STORMWATER UTILITY
COUNCILMEMBER MEYER: There are two items on tonight's agenda. The first item is a Budget Presentation on the Stormwater Utility. At the March 22, 2016 Council Committee meeting, staff presented an overview of the condition of the City's stormwater system. Doug Whitacre, Public Works Director, will provide an in-depth review of the program and discuss funding options to address the problems with the current system. This item is for informational purposes only and will be set for additional discussion as a part of the ongoing budget process.
MR. WHITACRE: Good evening, Committee members. Doug Whitacre, Public Works Director. This presentation tonight will look at the major components of the packet memo that was sent out to you for your review and try to just kind of elaborate on some of that information to provide further clarification. I also have Mike Gregory, Stormwater Manager, here with me tonight. So, if you get into any real technical questions or specific locations, I can call on Mike to answer those questions.
First, I’d like to provide a quick review of the stormwater system, overview of the current program and then discuss a variety of charts that hopefully help to continue the discussion on what should be funded and the potential time frame for doing it.
[Stormwater System Inventory slide]
Real quick. I’m not going to spend a lot. You’ve seen this chart, but just the key -- this is obviously our Stormwater Inventory that we have out there. The key issue really is that first line, the 101 miles of corrugated metal pipe that we have. Another one, a total of 178 miles of piping system. And then the other is just basically under those open channels, just to emphasize the drainage ditches and the improved concrete channels that we need to be taking care of, and then the 10,000, approximately 10,000 inlets, et cetera, that we have to maintain.
[Corrugated Metal Pipe slide]
Just again, the corrugated metal is scattered throughout our system and is not just in the older sections of town, but we have it all over the City. It makes up 56 percent of the total drainage system. And the average age is about 31 years. Again, the lifespan for this type of pipe is about 30 to 35 years.
Just as a note, we did stop installing CMP pipe in 2012, so that change was made. So that since 2012, we’re not installing CMP pipe just because of the longevity of it and the issues that we’ve had with it.
[Rating Scale for Pipes slide]
Again, just real quick, we went over this in the last presentation, the rating scale for pipes. We have a scale of 1 to 4. Again, the 3s and 4s are what we need to really key in on because that’s where our issues are. And obviously the Number 4 is the worst case and so that’s what we’re keying on as we make this presentation.
[Video Inspections slide]
Back again, the video inspection. We’ve done about 23 percent of our pipe, about 41 miles of the 178, and we’re seeing a trend in the conditions of our pipe. And as we pointed out last time approximately 8.5 percent of that pipe is rated 4, which means that’s the case. And that’s all of the pipes, both concrete and steel pipes. And then about 23 percent is rated 3 of which about 27 miles of the CMP is within that 3-rating that we’d have to be monitoring going forward.
[20 Year Stormwater Strategic Plan slide]
Again, this was the alternatives that we presented at the last meeting. Again, just real quick on that. Number 2 is what we are kind of using as a targeted goal to work with. Again, over time this alternative helps to mitigate our emergency repairs like the Holliday Drive, Quivira. And basically we’re having with these rains that we’ve been having here lately, we’re having CSR calls on a daily basis just because every time we get more water going down the drains and into the ground and like that we’re having, you know, they may not all be emergency repairs, but we’re having failures throughout the system that we have to go out and address.
[Current Program/Stormwater Revenue Sources slide]
Just wanted to provide some on the current program of how the money is utilized and the expense, or utilized and going with the current program. Excuse me. Again, this is the revenue that comes in. We obviously get it from Stormwater fee, General Fund transfer, which was increased in ‘16 from $500,000 to $750,000, some other miscellaneous items, and then Parks and Pipes money, which is a part of the Stormwater program, but is noted, since the inception of that tax the Parks and Pipe money, it has been used to -- as matching funds for the SMAC projects which are primarily to address flooding issues throughout the City. Which we have, obviously, I don’t know, in talking with my staff, we have done a lot of SMAC projects throughout the years to address those flooding issues within the City. So, we’ve utilized those funds to the best benefit that we can. They just have not been allowed to be used towards maintenance of our existing system.
[2015 Stormwater Program Expenses slide]
Just a breakdown again for you on our program expenses. I wanted to break down the total program as you see there on the left side. And then operations, which that is basically our in-house staff. It works out at the service center. And if you refer to page 2 of your packet memo, I’m not going to read through all of those. But I gave you in the packet memo starting on page 2, a complete list of all of the different functions that they’re doing that are classified as stormwater, so that you understand what all the, you know, details and day-to-day operational expenses are part of.
[Major Contract Expenditures - Administration]
Then we have on administration, again, I listed if you go through there, I think it’s on page 3, some of the fund expenses and functions of the administrative level. And then I wanted to key on that second line there under administration is contracts, the 353,000. I provided you another chart there that broke that down. And in that portion under administration is where we do our video inspection, the video analysis. Once you get all those videos in you’ve got to go through them and review them. That’s how we prioritize the pipe. You know, project engineering expenses, inspections out there, and then just when I say miscellaneous expenses, if you remember in the budget under Contracts there’s all these other miscellaneous lines within contractual. I was just trying to get the two numbers to add together. But that’s the primary functions that are used there under Contracts.
[Alternative #2 slide]
As we started out, Alternative 2 we’ve used as the discussion, the utilized funding projections for Alternative 2 as we feel this is a target funding level that should be obtained to maintain the system in a proactive method. So, we had to pick someplace to start where utilizing that and try to build around that and then show you options from that point.
Key items under Alternative 2 is we would accelerate the video inspection so that we can clear those blocked pipes and get that -- the whole system inspected to really know what’s going on. And then we’re keying on repairing and replacing or lining all of the 4-rated pipe and then begin after completing that looking at the 3-rated CMP pipe and trying to line as much or repair as much of that. There still would be some that’s rated 3 at this point that still would be left at the end of that point. But we still feel this would be a good target to get into. Again, we’re keying on trying to mitigate that, you know, the emergency repairs.
Just so that you understand, under General Maintenance, and as that keys into the next chart is -- General Maintenance is what we’re referring to as all of the in-house maintenance of administration costs that we have right now in maintaining and doing the day-to-day maintenance. And then we added in the video inspection, which we’re trying to complete in seven years. The structures, inspections and maintenance, the improved channel inspection and maintenance and the roadside ditch inspection and maintenance. And within those costs, just with developing this, that includes costs for increased staff and/or contractual support. And again, we’re wording it that way just depending on what is the best way to handle that type of situation.
[Annual Budget Needs Based on Replacement of 3 & 4 rated pipe]
So again, if we go to the next page, so the General Maintenance, what I just described is that $2,697,618 number which ties back to that Alternative 2 chart. Again, what I’m trying to provide here for you is annual budget needs and then based on the replacement of the 3 and 4 rated pipe and the various funding levels, what it would provide and the time frame it would take to get all of that 3 and 4 rated pipe replaced. So again, I’m just trying to give you some numbers to work with from that standpoint.
Again, 7.5 million would be the target funding, and then I just did it in $500,000 increments to reduce it to, to take it down. And again, it shows you that we would be on about the 20 year time frame if we had the full funding of 7.5 million, and then it goes down from there. And obviously as we get to the bottom it gets, you know, to where we’re really not even gaining, you know, we’re not gaining anything to be honest with you if we stay at that lower end.
[Program Funding Options slide]
The next chart provides some combination of Stormwater Fee and mill levy funding. And again, not making recommendations, just trying to give you some data so that you understand how putting those different things together. Right now currently we’re at $3 a month or $36 a year for the Stormwater Fee on a normal residential property. And then I just took it up to $12. Because if you take it all the way up to 12 that would give me, or would provide the full funding of $7.5 million. And then I added in the 750 General Fund transfer and then said this is what would be required on the mill levy. So again, you know, if we stayed at the $36, it would take six mills to get to seven and so forth as you go down. Again, just trying to give you some numbers and some various levels that we could -- for the funding purposes.
[Program Funding Options 2nd slide]
I put this in just as a couple of, again, samples that again as you we determine what that program funding is for the program going forward. Then you can take it back to that chart and again figure out, okay, how many years will it take to replace that pipe et cetera from that standpoint. I did a $5 a month, or $60 per year, line there for you shows you that if you just use just the mill, or excuse me, the Stormwater Fee only, it would generate about $3.6 million by raising it to $5. If you added one mill you’d get $4.4 million. Two mills takes you to $5.2 million. And three mills takes you to the $6 million. Again, just some combinations.
[$6.00 per month / $72 per year SW Fee slide]
Looked at doubling the Stormwater Fee which goes from $3 to $6, or the $72 a year, and that gives you some funding levels there.
[$9.00 per month / $108 per year SW Fee slide]
If we tripled the Stormwater Fee to the $9 from $3, again, gives that plus two mills would give you the $7.5 million. And again, didn’t need to go to three mills on that. Again, this is just for talking purposes and giving you some numbers to work with.
I want to be upfront with you from the standpoint, and make sure that everybody understands that when you raise the Stormwater Fee, what I’m trying to show in these, it does affect the businesses. You think of, you know, taking a resident from $36 to $72, it’s not a big jump. However, if you look at different businesses it affects our businesses, it affects our non-profits. And so that’s what I was trying to show you in these charts. And we basically, what we did here is we just tried to give you a sample. But like we took all of the properties for the school district. We took all of the properties for like the City of Shawnee. We took all so that it just kind of gives you a feel of what would happen at the different levels for that Stormwater Fee just to make sure you’re aware of that. And again, I did one for the $6 and then one for the $9 just to show you the effect on that.
And basically that was what I was trying to present out to you. You know, this concludes the presentation. Giving you some numbers to try to help maybe with some discussion and direction there and I can take questions or go from there.
COUNCILMEMBER MEYER: All right. Thank you, Doug. Any questions for Doug? Eric.
COUNCILMEMBER JENKINS: Yeah. Just get back to that one slide. That’s the problem with this. These slides go and you can’t get back to them.
COUNCILMEMBER MEYER: Yeah. I was just -- can interrupt you for one second, Eric. Sorry.
COUNCILMEMBER JENKINS: I know what you did on that, but --
COUNCILMEMBER MEYER: Yeah. We don’t have this -- sorry. We don’t have this PowerPoint presentation printed out, so --
CITY MANAGER GONZALES: It’s in your notebook.
COUNCILMEMBER PFLUMM: What notebook?
COUNCILMEMBER MEYER: I think we have just the budget for the next presentation. I don’t think we have this Stormwater Presentation.
COUNCILMEMBER JENKINS: We have some charts, however, that covers some of that same thing I suppose.
COUNCILMEMBER PFLUMM: Well, part of them were in the packet.
MR. WHITACRE: You should have everything but that sample chart that I did.
COUNCILMEMBER JENKINS: That’s fine. The one thing I was concerned about and the thing I wanted to talk about is this chart on Annual Budget Needs Based on Replacement of 3 and 4-rated Pipe. And you’re showing the annual budget, if it was $7.5 million it would take 20.8 years. And you get down to the bottom here and if it’s $3 million, which is close to what we’re funding it right now, it’s going to take 330 years. And, you know, that’s some really crazy math when you go from say, let’s use -- let’s make it real clean. Let’s go to $6 million where it takes 30.2 years. And somehow when you cut that in half and go to $3 million it’s 330 years. So, it’s more than five times as long, which tells me there’s a whole of sunk cost in here for staff and things like that, which means you don’t get anything actually going into the -- anything going to actual product because it’s all these initial sunk costs in the first place. So, out of that $3 million, the money we’re putting in there, how much is actually going into repair of these pipes, these deficient pipes?
MR. WHITACRE: Right now under the current program where we’re pulling in about $2.4 million, there’s about $600,000-700,000 a year that goes into.
COUNCILMEMBER JENKINS: So, the rest of it’s all budget.
MR. WHITACRE: The reason this --
COUNCILMEMBER JENKINS: The rest of it’s all staffing and et cetera.
MR. WHITACRE: It’s equipment and the manpower that’s out there doing those various functions out there for all of the stormwater.
COUNCILMEMBER JENKINS: But we have to subtract that basically from any one of these totals to see how much money is actually going to be -- well, actually we can’t even do that. That’s not even a direct correlation because we’re talking about increasing staffing too with contractors or additional staff or whatever. And I’m assuming that means some other equipment as well. So, yeah, there’s no clean trade-off here, tit for tat I guess. So, it’s hard to really say by just looking at these numbers how that’s going to work out. But that just seems pretty dramatic, you know, 330 years at half the funding, where it would be 30 years. That’s a tough one to swallow there.
COUNCILMEMBER MEYER: I just want to jump in and let the record reflect that Councilmember Kenig joined us at 7:14. Welcome. Any other questions? Mike, it looks like maybe you’re thinking about one?
COUNCILMEMBER KEMMLING: No, I was just looking at one of these charts.
COUNCILMEMBER MEYER: Oh, all right. Great.
COUNCILMEMBER KEMMLING: I do have a question. Real quick. One of the things listed under expenses is graffiti removal from drainage structures. Is that a pretty serious deal or is that rare?
MR. WHITACRE: He tried to list everything so you understand where -- no, that’s not a major thing, but we obviously have to, you know, address it because obviously if it’s obscene or whatever --
COUNCILMEMBER KEMMLING: Right.
MR. WHITACRE: -- we need to get it off of our, you know, our facilities.
COUNCILMEMBER KEMMLING: Right. We’re not doing a ton of graffiti removal?
MR. WHITACRE: It’s not something, no, that we have a major issue with.
COUNCILMEMBER KEMMLING: Thank you.
MR. WHITACRE: We were just trying to, I think to show you, not to elaborate on that, but there are a lot of little things that we get called on on daily that we have to go deal with that really, you know, from a productivity standpoint yanks you away, but sometimes you’ve got to go take care of them. You know, somebody fills a road full of mud, we can’t find who it is, we’ve got to break a crew away and go clean up the road, so.
COUNCILMEMBER MEYER: Great. Jim.
COUNCILMEMBER NEIGHBOR: Yeah. As I go through this, in-house maintenance, operational functions, and then administrative functions. You know, this is -- you guys do an awful lot of things besides literally go and replace pipe and do all this other. So, I think one of the things, and sort of to go with what Eric is saying, you know, okay, I guess we got two crews now, it would be nice to have three because then we could probably get more there. But then that gets into the manpower and all that other. But, you know, I just -- I appreciated this listing of everything you guys are doing besides literally going out and changing pipes because it tends to put it in perspective because, yeah, you’ve got, like you say, if you’ve got to go do something, you do it. And then something else waits.
COUNCILMEMBER MEYER: I agree. I appreciate the list. I think it was really helpful. I’ll say just generally to my colleagues here. As we start getting down the road and talking about potentially increasing the Stormwater Fee and looking at the mill increase for all of this, I have a lot of consternation and trepidation I’ll say about it because we just passed a renewal of Parks and Pipes and I don’t know how that looks that we’ve just passed a renewal and now we’re going back and saying, oh, well, we need to increase more fees. We need to increase your taxes on this yet again. It just troubles me.
COUNCILMEMBER JENKINS: It troubles many of us a lot.
COUNCILMEMBER MEYER: Any other questions form the Committee? All right. Is there anyone from the audience who like to speak?
COUNCILMEMBER JENKINS: Just one more thing.
COUNCILMEMBER MEYER: Yeah.
COUNCILMEMBER JENKINS: In the follow-up, Doug, to what I was talking about there, it would be neat if there was some way you could show some kind of relationship between the overhead costs of doing this work and then the actual, you know, what you’re going to get for that overhead kind of a ratio there because that’s the hard part to kind of figure out here. Okay, if we didn’t [inaudible] all this money and we -- how much more, I mean, is there economies of scale? Like we get to get to a certain point and, wow, we’re getting a whole lot more bang for the buck because we’ve raised this piece over here. You know, I don’t know if you follow what I’m saying because it is kind of convoluted what I’m saying. I’m having a hard time expressing exactly where I’m coming from. But I think you’ve got to -- you’re starting to take notes there. You know, okay we’re -- here’s our sunk costs, here’s the outputs over here in terms of pipes repaired or replaced. And these various gradient levels you were going through, you know, what’s the impact of that as far as outputs based on these static levels on the left column and what do you get as far as positive outcomes over here?
COUNCILMEMBER MEYER: Jeff.
COUNCILMEMBER VAUGHT: I just want to address something that Stephanie just said. So, we talk about the renewal of Parks and Pipes. Remind me again how those buckets are segregated. So, Parks and Pipes obviously can only pay for one thing, where the Stormwater Utility. So, your challenge isn’t, if I’m not -- so, Pipes is for stormwater?
CITY MANAGER GONZALES: The Pipes has to be for our stormwater system. That’s how it was worded on the ballot.
COUNCILMEMBER VAUGHT: Okay.
CITY MANAGER GONZALES: It could pay for maintenance.
COUNCILMEMBER VAUGHT: Okay. They’re different.
CITY MANAGER GONZALES: It has just been the practice of this Council and previous councils for the last 15 years to use it as that SMAC funding. Addressing flooding is obviously one piece of our stormwater system as opposed to maintenance of the system. So, that’s just been a choice in the past to leverage those.
COUNCILMEMBER VAUGHT: So, I mean, we just recently had the idea of, you know, not letting this matching funding go. So, while I understand what you’re saying, I mean, the reality is Parks and Pipes, while they renewed it, I don’t think it was ever presented as, you know, the end-all, be-all that you renew this and it’s going to solve our problems. It’s been around for quite some time. And the purpose has been, and what we’ve used it for is to obtain as much matching funding as we can which still doesn’t give us enough to acquire all the matches that are out there as we recently talked about. So, the -- I think the Stormwater Fee, I mean, if all it was Parks and Pipes and you never have the fees involved and we’re saying renew this and we’re all good, you know, I think we’d have an argument there. But I mean I don’t see the correlation between the two. I understand that it was renewed, but it was, you know, that money is -- that money is going to a specific bucket and it’s being utilized.
COUNCILMEMBER MEYER: And I guess I would just counter that and say that one of those specific buckets is for pipes, which includes stormwater. And so I guess my question would be if we went about going for a renewal, which I agreed with, and it wasn’t enough to cover the problem, then why the heck did we do it? You know, I guess I just, if I’m an average citizen and I vote for this and in my mind I’m like, okay, well, then that’s going to be, you know, enough to cover this issue. And if it’s not anywhere near enough and now we’re coming back and saying, well, remember when you passed this tax renewal it wasn’t enough, we need to do this to increase your fee here. We need to do this to increase your mill levy. I’m saying why didn’t that tax I voted for cover it? Then why didn’t you figure out what the need was and ask me for the need. Do you know what I’m saying?
COUNCILMEMBER VAUGHT: Well, I understand that, except we, you know, the reality is if we loaded Pipes heavy on the sales tax it wouldn’t pass. There’s a reason Pipes is partnered with Parks is parks a lot more popular than pipes. And for our voters in western Shawnee that we represent, they really don’t have a big concern about pipes because it’s fairly new infrastructure and doesn’t affect them as much. So, if we want Pipes to survive on the ballot, then we partner with Parks. If you increase the Pipes part of it too much on the sales tax that’s going to fail. So, this is a way to get something out of it, partner up with Parks. Parks are popular. They’re going to vote for it. You know, if somebody wants to propose doubling that on the next sales tax when it comes back around again knock yourself out. I mean, I would love to see stuff paid on sales tax, but, you know, I do think that -- I do think that you’re right. I think the residents are saying, you know, what’s it take to solve this, solve this problem, and we see what it’s going to take to solve it. And whether it’s a mill levy, increase in the Stormwater Fee or a combination of the two, but you’re sure not going to be able to solve this whole problem, I mean, you know, if we look at the amount of money here what would you have to increase that sales tax dollar amount to cover the kind of money we’re talking about. You know, that I think is pretty unrealistic. We’ve got three sources we’re pulling from here, but I don’t think we -- I don’t think the expectations in any one of them is going to solve the problem.
COUNCILMEMBER MEYER: Any other questions or comments from the Committee? All right. Thank you, Doug.
MR. WHITACRE: Thank you.
COUNCILMEMBER MEYER: Is there anyone in the audience who would like to speak to this item? All right. Seeing none, again, it was for informational purposes only.
2. BUDGET PRESENTATION - 2016R/2017 BUDGET: FUNCTIONAL COSTS, 10 YEAR FORECASTS, AND SHAWNEE CHAMBER OF COMMERCE AND VISIT SHAWNEE.
COUNCILMEMBER MEYER: So, the second and other item on the agenda tonight is the Budget Presentation on the 2016R/2017 Budget, Including Functional Costs, 10-Year Forecasts, and the Shawnee Chamber of Commerce and Visit Shawnee.
This budget discussion will provide an overview of the 2016R/2017 Budget by Function, presentations from Visit Shawnee and the Shawnee Economic Development Council, and a review of the proposed work plan. This item is for discussion only.
CITY MANAGER GONZALES: Thank you. Carol Gonzales, City Manager. We’re going to do a little tag-teaming tonight. You’ll get to hear from several different people.
[May 3rd Meeting Review slide]
So, just to start off at the -- we talked last about starting off with a review from last meeting two weeks ago. And now you’ve had time to digest that. Didn’t know if there was any questions regarding revenue projections, the tax lid, the preview that was given at that meeting. Anything we need to revisit at this meeting?
COUNCILMEMBER MEYER: No. Looks like we’re good.
CITY MANAGER GONZALES: Okay. As Councilmember Meyer said, we’re going to start off with the Citywide Budget Summary by Function. So, remember this is kind of our new approach of looking at it holistically. So, Maureen will talk a little bit about that and what that looks like and the why it looks the way it does. I do want to reiterate what I said in the packet memo. This isn’t a recommended budget. This is a budget that fits with the mill levy and barely squeezes in what we are doing at this moment in time. We’ve spent many hours making that happen. And so that’s the numbers you’re looking at. And as we move through tonight and the next meeting, then by the end of the next meeting when we talk more about needs and additional needs, then I will have my recommended budget and hopefully get to hear from you all as we begin to develop that.
After Maureen talks, then as Councilmember Meyer said, we’re going to hear from the Chamber. I’ll review the City Work Plan Draft and we’ve got some comparisons to show you that are kind of our annual comparisons. And then Maureen is going to review the budget and the forecasts.
[All Funds slide]
MS. ROGERS: Well, this is our attempt to put together a big picture budget that encompasses all the funds and gives you a picture of each function such as Public Safety and Public Works, so that you’re able to see pretty much at a glance how much of the budget goes to different functions. What we put together is not a whole lot -- we tried not to make a whole lot of complicated changes in cross-walking from the organizational way that the budget is put together to this. One thing we did do is for instance pull court out of the City Manager’s Office and put it into Public Safety. And the debt payments are distributed by function. We have some debt on the Justice Center. We divided it out by Police, Fire, Court. There’s a little bit of Parks debt and most of the debt is in Public Works. Also we pulled the transfers out because that was -- one of the things that’s always confusing is to, when you have both your revenues and expenditures are sort of double-counted in those transfers just a mechanism to move from one fund to another when that needs to happen. So, this document pulls those transfers out so that you can see the true expenditures. We’ll break it down just a little bit.
Start with Revenues. One thing to keep in mind about looking at the budget with all the funds is that like the General Fund will kind of grow gradually because it’s got mainly things like salaries and benefits. But this will fluctuate just a little bit because it’s got project funds. For instance, some years we’ll be saving up money like the SIP money. A couple years that were -- that that forecast shows saving up and then a project, and then saving up. And also like in the Economic Development Fund, there may be some years where there’s more happening than others. So, that causes the balances to fluctuate a little bit more than what you would see in the General Fund.
Revenues went up about 2.3 percent from 2016 budget to 2017 budget.
One thing I wanted to note before we get there, on sales taxes, you might keep in mind when you look at that that in 2015 we had only nine months of the pavement tax and then there is, of course a full year in ‘16 and ‘17. And as you recall from the last time we reduced the sales tax a little bit from what ‘16 to 16R based on how the ‘15 revenues came in on those.
[Revenues - Total Revenues by Source 2017
And this is just a graphic representation of the same thing that shows the percentages. Obviously most of our revenue comes from taxes of various kinds. The green is the taxes.
Expenditures. Actually 2017 is 1.9 percent below 2016 budget. One thing you may notice is in 2015 Actual it’s quite a bit lower than ‘16 and 16R and there is several reasons for that. With the pavement tax coming on in ‘15, when we received that tax we saved it up so that we do this rolling year so that we’re not coming down to the end of the year seeing if we have enough sales tax. We incorporated all ’15 the pavement tax into the ‘16 program. So, that program more than doubled from ‘15 to ‘16. Again, with projects, the Parks and Pipes has over a million dollars more in ‘16. There was savings in the General Fund at the end of the year of almost $2 million. EcoDevo Fund had budgeted amounts in ‘15 that were not spent. And so they appear again -- there’s programming in ‘16. So, that’s kind of typically what happens is there is more that is budgeted than what’s actually spent.
[Expenditures - Total Budget by Function 2017]
And this is just a graph showing Public Safety, 38 percent. Public Works, 37 percent. Parks and Rec, 8 percent. One thing to point out. These are just expenditures. For instance, Parks and Rec actually recovers a little over 20 to 25 percent of its costs through fees. So, some of these programs actually do recover some of their costs. But we tend to look at it in terms of putting all the revenues together.
[Transfers and Total Budget]
And then at the bottom it shows -- I guess this is kind of the structure of -- this one shows the beginning balance and then the total revenue and then the total expenditures without transfers. And so you have that expenditures then with transfers. The blue numbers are the transfers added back in so that you can see both with and without. And then the difference between revenue and expenditures. If you take the revenues with the transfers and the expenditures with the transfers, then the difference is this bottom line here, the total revenues and expenditures. It depends on whether you’re looking at it with or without -- how that works.
And Budget ‘17 ends up, when you add the fund balances in the expenditures, to be just over $101 million, which is pretty similar to what it was in Budget ‘16.
Do you have any thoughts about how that’s put together? Hopefully that makes a little bit of sense or is helpful. We can continue to modify this over time and --
COUNCILMEMBER JENKINS: I have some specific questions about some of the slides.
COUNCILMEMBER MEYER: We do have these slides, but they’re already gone. That’s all right.
COUNCILMEMBER MEYER: We do have these slides.
COUNCILMEMBER JENKINS: Yeah. I was just wondering, a couple things just kind of jumped out at me as you were going through there. It was a couple back. Back another one I think. Well, I can’t find it again. It was a significant reduction amount for what we were going to put on Stormwater repairs on the pipe repairs one. It was four something last year and then we were projecting two point something this year. And that kind of jumped out of me wherever that went. There it is, Stormwater Maintenance and repairs. There’s $4,704,000 there. And this year we’re talking 2.4. And I was wondering why the big -- the $2 million. Where did the $2 million go?
MS. ROGERS: Most likely that’s the Nieman South. I think a lot of that is we moved Nieman South from ‘17 into ‘16. And the title of it, probably that should be Stormwater Program rather than Stormwater Maintenance and Repairs because really that’s a flood mitigation project rather than maintenance like we’ve talking about. But that’s kind of this timing of projects and that’s, yeah. That project was --
COUNCILMEMBER JENKINS: We’re talking about what a big problem it is, and I’m looking at it, it’s $2 million less than last year. That’s kind of like, okay, I’m trying to get my head wrapped around this one. Why are we actually reducing it when our needs are going up?
MS. ROGERS: Well, that’s kind of where it’s necessary to drill down into the forecast of the -- and separate out Parks and Pipes and Stormwater. Because with all this together by function then you have that combination of projects that fluctuate year to year with the ongoing operations that are going to be more steady.
COUNCILMEMBER JENKINS: It looks to me we’re anticipating less, so we’re only budgeting 2.4. Anyways --
MS. ROGERS: Well, Parks and Pipes, because we pushed money up to do Nieman South, then in ‘17, that’s Parks’ turn to have their project. And so there’s really nothing happening in Parks and Pipes for pipes in ‘17. And if you go -- if we look at the forecast for Parks and Pipes, then you can see that. That’s kind of one of the considerations when you look at just this document that puts all the functions together of all the funds, it gives you a view.
COUNCILMEMBER JENKINS: Right.
MS. ROGERS: But then you can look at that and ask the question and then we drill down.
COUNCILMEMBER JENKINS: But then Parks and Rec is down also for -- not a lot, but about 300,000. So, they’re both down. So, it’s confusing.
MS. ROGERS: Well, I guess the way that --
COUNCILMEMBER JENKINS: No, you don’t --
CITY MANAGER GONZALES: The ways we do the department presentations, then next time -- because this time we started big because that’s what you all asked and we’re drilling down at the next meeting. So, when we do the department presentations, the Parks and Rec presentations, then those numbers will show.
MS. ROGERS: Right. That’s kind of what I’m --
COUNCILMEMBER PFLUMM: So, just a suggestion, can you bring that when we do the Parks and Pipes. And when we do the Pipes specifically can you bring this chart?
MS. ROGERS: Sure.
COUNCILMEMBER PFLUMM: And we’ll talk about it and then we’ll do the drill down.
MS. ROGERS: Yeah. It’s kind of like City Manager Gonzales said, you have to start somewhere.
COUNCILMEMBER PFLUMM: I understand.
MS. ROGERS: And in the past we started with the details and built to the total. And now this time we’re starting with the total and then -- well, this looks really weird. Well, you’ve got to drill down into the details. And so that’s where as we look at each fund’s forecast some of that will hopefully become a little bit clearer. But that’s a valid point. I’ve kind of suspected that would be a concern. So, it’s just a different way of looking at it.
COUNCILMEMBER MEYER: Brandon.
COUNCILMEMBER KENIG: Yes. Maureen, I had a question. So, for the last couple days when I was looking over this, I noticed that the revised expenditures for the Street Maintenance Program and for Public Works are lower than what was originally forecasted, and I was just wondering some of the reasons for that. Could it be that some of the projects that were prioritized within those, particularly the Street Maintenance Program, were those reprioritized or some of the projects have gone slower than anticipated?
MS. ROGERS: I think on the Street Maintenance, let’s see, that is all in the Special Highway Fund. I think that is mainly -- some of that is cost savings and some of it is project timing that’s a little bit different than what we had anticipated.
COUNCILMEMBER KENIG: Okay. And Public Works that would encompass, I’m sure many other things as well for the --
MS. ROGERS: Public Works, yes. It includes -- the Street Maintenance Program is the Special Highway Fund. And then the debt payments are found, these particular ones, in the Debt Service Fund. And then the Stormwater is in Parks and Pipes and Stormwater. And then Public Works/Development Services is the General Fund piece of it. So, the more services part of it. So, there’s quite a bit of funds that make that up.
CITY MANAGER GONZALES: The difference on that Special Highway -- good question on the forecast. When we budgeted in ‘16, we included just kind of a flat amount across the years for the SIP street construction piece. And so as we went back this time and had the prioritization that the task force had developed in the forecast, you’ll see that we kind of spread -- we would save a little bit, then we spend a little bit, save a little bit and spend a little bit. So, ‘16, we’re budgeting as a save year so that we can accumulate enough to do a project that then we program out in ‘18. So, that’s what that reduction is in the 16R.
COUNCILMEMBER KENIG: Okay. That’s makes sense.
MS. ROGERS: Thank you. What we did is we went back and we looked at the -- how the SIP committee had prioritized. And so we -- I think we fit five projects in, four or five projects in on that SIP line of the forecast there. But the way we’re actually going to do them is to, yeah, save up and then spend. So, this is an example of this project timing piece of this where it’s going to fluctuate from year to year when you are looking at project funds.
COUNCILMEMBER KENIG: Right. And the Street Improvement Task Force, so their instructions I know entered into this about that time in, so that would explain that. So, thank you.
COUNCILMEMBER MEYER: Jeff.
COUNCILMEMBER VAUGHT: You know, I think something interesting to look at or point out, I mean we looked two slides before this when you look at revenues and you look at sales tax revenue, that’s our number one revenue source. It’s the most volatile. And when we really talk about taxes and mill levies and everything else, you know, this is where you probably need to write our congressman and beg them to address taxing Internet sales. If it’s ten percent, this is ten percent of that number. That’s $2.7 million. That’s, what, four -- five mills would be what? Three mills. You know, just three mills. I mean, just -- if that’s what ten percent. I don’t know what the numbers -- I don’t know what our sales tax loss is to Internet sales, but this is going to continue to be a growing problem. And, you know, so we’re sitting up here trying to -- we’re looking at a budget, we’re trying to solve things like Stormwater. We’re trying to grow our city and then the federal government is not helping us any by addressing this and we’re going to continue to, I mean, that’s sales tax. And that’s kind of what’s interesting is we’re supposed to have a theoretically growing economy and I think our sales taxes have been kind of flat, right? So, the questions is, are people -- I mean, I know that people aren’t spending as much, but when we look at our revenues we don’t really know what sales are as much as we just know how much revenue we’re getting. You know, I know my wife, she shops from home now. She hardly ever goes to the store. It’s just because it’s so easy and so it’s got to be addressed. I mean I think us as local members of a governing body it affects us the most and we need to start using our voice with our congress representatives and telling them the burden it puts on us.
COUNCILMEMBER MEYER: Brandon.
COUNCILMEMBER KENIG: Yeah. I was just going to follow up on Jeff’s comments. So, the legislation that addresses this in Congress that is stalled is called the Main Street Fairness Act. So, for those of you that want to follow up on it, and it’s been passed by the Senate a couple of times and it’s stalled in the House. So, if you are going to reach out, reach out to your U.S. House member. In this case, Congressman Kevin Yoder about that. So, that’s where the issue is currently.
COUNCILMEMBER MEYER: All right. Anything else for Maureen? All right. Thank you.
MS. ROGERS: Our segue to the next portion of the presentation, I’d like to introduce Linda Leeper with the Shawnee Chamber and then she will take it from here.
Shawnee Chamber of Commerce Presentation
MS. LEEPER: Good evening, Council President and Councilmembers. Thank you for allowing us to come tonight. Part of our contract is to do the annual report. And I do like to go over the Shawnee Chamber and a little bit of the structure. Those of you who have been here before have seen this before, so hopefully it’s not too repetitive, but it’s good to revisit it each year.
[Mission Statement, Vision Statement, Six Strategic Focus Areas slide]
Wanted to just go over our Mission Statement. I’m not going to read it. You can see that. It’s in your packet. Vision Statement.
And we have six strategic focus areas. And this really has not changed over the last six years, which means that you have a strong organization which continues to focus on the key issues for your area. Obviously under that is Economic Development and Tourism is part of that. And that’s really what we’re here tonight to talk about.
[Governing Structure slide - Visit Shawnee]
The governing structure, you’ve heard this before. We’re a 501(c)(6). What does that mean? It means it’s a not-for-profit organization. It doesn’t mean we don’t make any profit, we do make some profit and that’s really used to support staff and funding for our programs. The corporation is under the leadership on governance of the board of directors. And I’ll show you that, our current board in a minute. We operate the Chamber plus our two contract divisions. Those two contract divisions being the Visit Shawnee and the Economic Development.
Just a quick note on the Visit Shawnee. You know, obviously you as a city have a city ordinance that provides for the collection of the transient guest tax, and that’s six percent right now. And that’s used for purposes of encouraging tourism in the City, obviously to generate additional revenue.
You may remember in January that we -- you went through a formalized new contract through the City of Shawnee and with the Chamber of Commerce. And that contract, in the process of doing that, we actually updated the name from the old CVB or Convention and Tourism Bureau to Visit Shawnee which is the directional name that organizations are using across the country. So, we all have to catch ourselves right now to remember that it’s Visit Shawnee and not CVB.
COUNCILMEMBER PFLUMM: Question.
MS. LEEPER: So, the division works with the Visit Shawnee advisory committee. And that advisory committee is appointed by the Mayor. And one of the key roles obviously for our Visit Shawnee division as we continue to add hotels is to be able to go out and market to a broader base to bring tourism back into our community. And Kevin will talk a little bit more about specifics about that.
COUNCILMEMBER MEYER: Linda, can we jump in for one second. I think Dan has a question.
COUNCILMEMBER PFLUMM: Yeah. That Visit Shawnee, I mean I think that’s a great idea and all that, but if you punch in Visit Shawnee in Google, you get Shawnee, Oklahoma. So, they kind of beat us to the punch on that one. So, I mean, has everybody -- is it Visit Lenexa, Visit Overland Park? Is that a country-wide thing, because we’re really kind of behind the eight ball on that?
MS. LEEPER: It is. It started about three years ago, and Kevin can probably address this more. About three years ago Greater Kansas City changed theirs to Visit Shawnee and a lot of -- I mean, Visit KC. And a lot of the cities across the country have done this. Part of that is we are in the process of a new website, Visit Shawnee. And once we get the metatag set up for that for Google Analytics to be able to search better, I hope to improve that issue that we have.
COUNCILMEMBER PFLUMM: So, what’s your link going to be? Just as part of the --
MS. LEEPER: It’s going to be Visit ShawneeKS.
COUNCILMEMBER PFLUMM: That probably ought to be our name. I mean seriously. Because everybody is going to go out there, and I did it, you know, so.
MS. LEEPER: We did go back and forth on that and it is a good comment. We get people -- we get phone calls every day about paying their chamber dues for Shawnee, Oklahoma Chamber, so.
COUNCILMEMBER PFLUMM: Take them.
[Inaudible; talking over one another]
MS. LEEPER: We said we’ll take the check.
COUNCILMEMBER PFLUMM: Just pay online.
MS. LEEPER: Pay online. Yeah. It’s a good comment, so I thank you for that. So anyway, we will look at additional marketing as those hotels come on line and be able to have a broader base for our tourism and marketing.
[Governing Structure – Shawnee Economic Development Council (SEDC)]
The second contract is for economic development, which you’re very familiar with. Obviously contract with the City for the Chamber of Commerce to be able to continue to provide services for economic growth in our city. One of the things that is -- it’s a great thing, we work so closely with the City, our staff, that sometimes we think we’re City employees, but we’re really not. The Economic Development staff does work underneath the Chamber and you just contract for services. And my best example is if you needed to blacktop a road you’re going to contract, go out to bid and contract, you know, with McAnany to do that for the surface, and to get a product and a service. Basically you’re doing the same thing from the Economic Development standpoint with your contract and you’re contracting with the Shawnee Chamber for those services. Obviously like other contracts we have guidelines and parameters that we have to meet. And that’s really part of that what we’re doing tonight is presenting our annual program and plan and accomplishments as it relates to that contract.
I would say that one of the challenges we have, and it’s the same for all small businesses, is the cost of benefits and goes up and your staff is your most important asset. So, as we continue to grow, we have the challenges with divisions for health costs going up and other benefits. So, that’s something we struggle with and I’m sure you all that have businesses struggle with that same thing. So, as we look at that, you know, two or four percent, in a lot of cases doesn’t cover those additional costs, so.
[Board of Directors slide]
Next is our Board of Directors. Obviously that is the governance of the Chamber. Tonight I want to thank Brian Brown, who is our chair-elect, who is in the audience attending tonight. He took away from his busy evening to come. And also Leon Logan, our past chair is here tonight. They are two of the people that serve on our Executive Committee. Additional board members represent small to large businesses. On our board also represents school districts, superintendent of school districts, and the Mayor sits on our board of directors as an ex-officio. JoLynn Brosnan as Chair of the Visit Shawnee Advisory Committee sits on the board. And so does our SEDC chair of the Executive Committee also sits on the board.
[5-Star Accredited Chamber slide]
You’ve probably seen this before, we tout it a lot. It is a big deal. We are a 5-star accredited chamber. Nothing has changed there. We’ve kept our status. We’re still 1 of 81 5-star chambers. We’re in the top one percent in the nation of all the chambers. On the downside is the fact that you have to reaccredit every five years. So, our next year date is 2019, and it takes about eight months of work to do that. So again, it’s just how our standards and practices are in our organization that puts us at the 5-star level.
Last year, I think when we were here and we talked about the Chamber of the Year finalists, and that was something though a professional organization. And we did compete on that with 20 other chambers and we ended up to be a finalist. It’s kind of like coming in second. We weren’t the top, but it’s pretty good in 20 chambers across the nation. So again, it has to do with our operation and standards. So, we continue to talk about that for a while.
[Shawnee Chamber of Commerce Corporation Professional Staff slide]
Next, just quickly is our organizational chart of our professional staff. We are pretty -- we’re not real deep here. We’re pretty much way across the board. So, carry the various functions. As a whole, all of the individuals here support everyone in very division at various times and step up to help out. We do have one opening right there and I hope to be able to announce that as soon as we fill that, the Membership Representative position. So anyway, we’re not real heavy and we cover all three operations within the organization from that. And I report directly to the Board of Directors.
[Visit Shawnee Advisory Committee slide]
The Visit Shawnee Advisory Committee, JoLynn Brosnan is here in our audience tonight and she is chair of that advisory committee. Also serving on that committee, Carol serves on the committee, Carol Gonzales, Neil Holman. Jim Neighbor is a Council representative and so is Mickey Sandifer. And I think from the community I think I saw Neal Sawyer in the audience that serves on that committee, and hopefully I forgotten anyone else. But that’s the new name for the CVB committee and it’s the Visit Shawnee Advisory Committee. And they do work hand-in-hand with Kevin and that division for marketing opportunities in that area.
[SEDC Executive Committee slide]
The other committee we have is the SEDC Executive Committee. I don’t know if you can see that, I can’t see that. Jeff Hagen is chair there. He wasn’t able to be with us tonight, but Brian Brown, our chair-elect also serves on this committee and they work very, very closely with Andrew on the committee.
So, that’s just a quick overview of the organization. Again, it’s kind of a repeat. There’s some new players there. But again, we have great volunteer support and leadership from our community to help us as a total organization.
So, if there is questions, I’ll be glad to answer it. If not, I would ask Kevin Fern, our Executive Director of Visit Shawnee to come up and do his annual report and presentation.
COUNCILMEMBER MEYER: All right. Any questions for Linda? All right. Thank you. Welcome, Kevin.
MR. FERN: Thank you, Chairman and members of the Committee. And first of all, I want to make the comment that I kind of like this earlier date this year because it always seems like we’re always here either right in the middle or right before or right after Old Shawnee Days. So, it makes it a little nicer this year.
COUNCILMEMBER MEYER: Are you busy during that time?
[Destination Marketing Organization (DMO) slide]
MR. FERN: First and foremost, and I think I mention every year is, every community usually throughout the country has what is known as a DMO, or a destination marketing organization that is considered to be the official DMO for their cities. And Visit Shawnee fulfills that capacity for Shawnee.
[Strategic Objectives slide]
· Increase visitors and generate room nights in order to provide a positive impact in the tourism segment of our local economy.
· Use a positive community identity to provide a fun & friendly atmosphere for all of our visitors.
· Provide leadership in various state and regional tourism alliances.
· Maximize marketing potential by participating in co-op opportunities in the regional market.
· Be a point of contact for potential developers of new hotel properties.
So, basically that is our overall mission, objectives that we deal -- work with every day. Being probably the most important there is just as I always like to say putting heads in beds. That’s our first and foremost mission every day.
[2015/2016 Accomplishments slides]
Accomplishments of the last year. Rebranding. As Linda mentioned we rebranded last year. There is the new logo, Visit Shawnee. And basically, you know, that’s kind of a -- took the redesign of all our marketing, our collateral, and Councilman Pflumm mentioned the new website which is under development as we speak. It’s almost to the final stages and probably will be launched anytime in the next probably week to ten days. So, we’re pretty excited about that.
Another big thing that we accomplished this year that I visit with you in past years was the National Association of Sports Commissions. And I attended the first event that I’ve ever gone to for that which was a symposium in Grand Rapids, Michigan. In that, basically that’s a huge trade show where you go and about 85 percent of the tournaments in the country, they’re booked at that particular symposium. And it’s Rights Holders and people who book the tournaments throughout the country. And so that was a great learning experience for me. And as we talk about some other things of the future, I think will be a key part of us being able to increase our sports market.
Hosted the hospitality tent at 12 community events. I think most of you who are at the events usually see us there. We’re usually doing balloons and like to be the welcoming face of the community at all our events.
We hosted the Eighth Annual Shawnee Tourism Celebration in conjunction with National Travel and Tourism Week which was just last week with the Chamber lunch. And that was a very successful event even though we had to move it inside.
So, we look to the future and -- accomplishments this year and things that we did basically I continued as a leadership role, as the past president of the Travel Industry Association of Kansas. And this year I agreed to step up to be the vice president of the Regional Destination Alliance where I had served as treasurer prior to this year.
We fulfilled 355 direct requests for visitor and relocation packets and over 5,900 other requests for information and other promotional materials. We have worked to expedite the issues that have developed obviously with the construction of the Comfort Inn and the Fairfield Inn which is finally coming out of the ground at Midland and Renner Road. And that was basically just working with them and making sure that they were on track and working with the City and expediting any issues they had.
And we also, as I said in the, I think third year now with the production of the Visitors Guide, which is a section of the Shawnee Magazine in the spring issue that came out a couple weeks, I hope everyone has seen.
[2016/17 Work Plan slides]
So, we look to the future, 16/17 Work Plan. With the addition and with the new Holiday Inn Express that’s open and with the new Comfort Inn and Fairfield Inn we’ll have 258 rooms in our inventory in the next year and a half. And we’ll obviously need to significantly step up our game to work on new market segments and outlining there a few of what those are.
Sports. As I mentioned, National Association of Sports Conferences and just the idea of where we’re located, we’re a prime sports market. And I think if you talk to our hotels, that’s something that basically we need to really focus on. And so that really requires, you know, participant in the type of things that we did in Grand Rapids, which is going and booking those tournaments at these different trade shows and symposiums that they hold.
The second market that we’d like to focus on is Group Tour. That’s tour operators. In the past we really haven’t focused on that market simply because we’re not at a price point with the Courtyard and the Hampton Inn where we never get that business. We just have the quality of hotels that basically they’re a very price conscious market. And obviously with the addition and different price points, especially with the Comfort Inn that will be not where we’ll be in to this point. And so we’ll really need to start focusing on that. And that too again is a lot of trade shows, a lot of regional bank travel, the kind of people who do tour operations. It would be something that we would need to focus on, too.
And then lastly is Leisure, which is everything. But the one thing in leisure is basically the whole way that that’s moving as far as marketing. And the leisure market is basically just having the online platforms and all the type of new technology where people basically book it on their phone as they’re traveling. And those are a lot of things in the past we just haven’t had the resources to pursue and so I think we really need to look to the future and how we’re going to be able to do that more.
I mentioned again the launch of the new website, which will be a responsive design platform and open-ended technology. So, we’ll be able to do a lot of exciting things with it once it’s lodged and approve it. There will be a lot of -- I could go on and on about that because there’s going to be all kinds of different additions that we’ll be able to add to it with the proper resources over the next year or two.
Obviously more sports symposiums and bookings for, you know, the trade shows, for the tour operators and the bank travel market. That just requires a lot of time and a lot of attending shows and going out there and marketing your communities and that’s where we’ll need to go with the additional rooms.
I intend to continue my leadership in the state and regional travel and tourism alliances. That’s been a great thing for us being one of the smaller convention and visitor bureau types in the area because simply the co-op opportunities and a lot that we -- some of the things that we’re able to do there in working with their communities, I mean, we’re a city even with the new hotel rooms. We’ll be at 400-500 rooms compared to Overland Park who has 5,000. So, obviously when I work with Overland Park that’s a great advantage for us and that’s something that we’ll continue to do.
We intend to continue produce the visitors guide as a section of the spring issue of Shawnee Magazine. That’s been a great partnership with Sunflower Publications. And basically it just doesn’t cost us anything, so it allows us to be able to produce something that’s a first class product and not require any resources for it.
And then continue to host the hospitality tent at all the community events.
I think that’s overall what I had. Any questions? Thank you all.
COUNCILMEMBER MEYER: All right. Thank you.
[Fund 210 Transient Guest Tax Fund slides]
CITY MANAGER GONZALES: I’m just going to jump in and look at the fund that the contract with the Chamber is in, which as Maureen mentioned, we did rename that fund. So, with the Visit Shawnee rebranding we just went to a more traditional name which is the source of the revenue Transient Guest Tax Fund. Because all that revenue doesn’t go to Visit Shawnee, also there’s some other allocations which is what I was going to review with you now.
[Transient Guest Tax Fund]
So, we renamed the fund. This year in 2016R then we finally did add the revenue from the Holiday Inn. If you all remember for many years I’ve said I’m not going to add any revenue until they open their doors and start putting heads in beds, and they are. So, we did increase the revenue for 16R by 80,000, and then of course funding in the ‘17 forecast also.
Another change that is in the forecast that we’ve shown is an additional $10,000 of that revenue. As Kevin talked about the upgrade in the marketing and the webpage that that additional $10,000 since we had the additional revenue in ‘16 that we hadn’t planned on, thought that was a good way to expend those funds to support that additional effort by rebranding Visit Shawnee.
The other item that’s in there and something for you all to discuss now or as we move through the budget and talked about in the packet memo. We’ve talked for several years, had conversations about the possibility of the City taking over the operations of the Mid-America Sports Complex that’s owned and operated currently by Johnson County. And we’ve talked with them about that concept just how might that work, would they be open to that. Our thought is, speaking to Kevin’s point about the sports tournaments and the ability to attract sports tournaments and with the horsepower we would have of Visit Shawnee actually actively out there working those tournaments that we could maximize that facility more, bring in more out of town tournaments, still support the ongoing local leagues, of course, during the week and weekends as needed also. But in order to decide whether that’s a good decision or not a good decision, we need a pretty comprehensive feasibility study and we just hadn’t ever done that. I think Neil and I have had this pile of things that we’ve gotten from Johnson County of all their revenues and expenditures and neither one of us have the time nor the expertise to do that. And there companies that do exactly that. So, with the additional revenue from the Holiday Inn in the 2016R, we thought that might be a good expenditure of some of those funds is to initiate that study, have that study done and then bring back to you all and see if we do think that’s a good thing to do moving forward. May or may not pan out, but feel like it’s worth looking forward.
Another key part about that is, as I think as most of you know, the long range plan that Johnson County Parks and Rec put out several months ago, maybe six months ago now, it shows elimination of a number of those fields in the future. We feel like that’s an impact to our community and that maybe if we could step in and operate those fields that we could -- we would like to retain those fields. We think softball is still strong. And as Kevin experienced when he went to the Sports Commission Conference, there’s a lot of tournaments out there to be had. So again, we’ve had this conversation with the Parks staff and with some of the electeds over there, so I think they know that we are looking into it. So, just an idea we wanted to put forward and have plugged in for you all to discuss about commencing that feasibility study here in the next few months to look at that.
With additional revenue, also increase the amount for Old Shawnee Day from $10,000 to $35,000 starting in 16R. With the addition of the hotel I had heard from several of you that thought that was a good time with the hotel to increase that.
And the bullet that’s not on here, and I apologize, but there is the just the standard, not a change, but the annual, the $10,000 for Wonderscope that we have included through the years. And there’s a letter in your packet from Wonderscope regarding their ask and the activities of Wonderscope over the past year and their plans for the future.
The remainder of the new revenue then just moves back into the transfer, back into the General Fund which helps to support the ongoing operations of Shawnee Town 1929.
And then just looking forward as we see the other two new hotels come on board, then probably have to have an even more robust discussion about how those funds should be allocated, what needs do we have to help those hotels keep heads in beds and what other activities we’d need to undertake as that revenue increases.
Any questions on that fund?
COUNCILMEMBER KEMMLING: If I might jump in there. It says in our packet under that Transient Guest Tax Fund that there’s $10,000 for additional marketing of the hotels. Why is the City paying to market private industries?
CITY MANAGER GONZALES: That’s the $10,000 toward allocation -- increase in the allocation to Visit Shawnee to the Convention and Visitors Bureau.
COUNCILMEMBER KEMMLING: Right. But --
CITY MANAGER GONZALES: That’s their role is to market the hotels, to try and fill the hotels, bring people in to spend money in our community.
COUNCILMEMBER KEMMLING: Right. So, I guess I -- maybe this is a philosophical deal. I’m not sure why the City is paying to advertise or market for a private company. I mean, we don’t do that with other companies. You haven’t done it with my company.
CITY MANAGER GONZALES: It’s part of the intent of that Transient Guest Tax. The way the charter and the statute is written that that -- that the tax revenue received from the hotels, that part of the purpose statutorily is to funnel it back into support those tourism businesses.
COUNCILMEMBER KEMMLING: Okay.
CITY MANAGER GONZALES: So, we aren’t paying for ads for the hotels, but we are supporting them by bringing tournaments to Shawnee.
COUNCILMEMBER KEMMLING: Okay.
CITY MANAGER GONZALES: The activities.
COUNCILMEMBER KEMMLING: I guess that’s what I mean getting at because when I see --
CITY MANAGER GONZALES: Yeah. Maybe marketing is --
COUNCILMEMBER KEMMLING: -- additional marketing for the hotels --
CITY MANAGER GONZALES: Right.
COUNCILMEMBER KEMMLING: -- that’s what I would think.
CITY MANAGER GONZALES: We’re not doing publications or ads, no.
COUNCILMEMBER KEMMLING: Okay.
CITY MANAGER GONZALES: It would be activities that create tourism.
COUNCILMEMBER KEMMLING: Okay.
CITY MANAGER GONZALES: Support a hockey tournament down at the ice rink.
COUNCILMEMBER KEMMLING: Okay. That clarifies it. Thank you.
CITY MANAGER GONZALES: Yeah. Yes, I’m sorry.
COUNCILMEMBER KEMMLING: Thank you.
COUNCILMEMBER MEYER: Jeff.
COUNCILMEMBER VAUGHT: I’d just like to say go back to what we talked about on the feasibility study for taking over Mid-America, and it’s something I know it’s been talked about and I totally support that. What I saw what the county proposed with taking out those ball fields and doing all-purpose fields that kills our senior softball tournament immediately, which is -- it’s a huge revenue source. They’re spenders when they come to town. Plus it kind of kills the idea of any future ones. I know one of the challenges we had I know a couple years ago talking Kevin with that was scheduling even. I mean, we had the seniors come to town for, which is one of the largest. It’s the largest senior softball tournament in the country and the county had scheduled them all in kind of the funky back fields and weren’t even on the premier fields. And we’re kind of indifferent to it. Like, well, that’s just how it is. It’s a scheduling issue. And so it makes it really hard for us to -- you go spend the money and you attract these organizations and then you’re kind of dealing with another entity on their scheduling and their timelines and I love the idea of us taking that over if we can make that happen. They manage it decent, but compared to when you look at some of the other athletic facilities in the City, it’s nowhere near what it could be. And I personally think it would be a definite revenue generator for us. You know, when we look at kind of how our facilities are maintained compared to that one, I think we can do a lot better job with it and definitely generate some revenue with it. That’s a very growing popular area out there. You look at that in the summer and I mean you have a parking lot across the street with the volleyball filled up. You have the ball fields parking lot filled up. You have something going on sometimes at the ice rink. And then you go around to Okun and that thing is filled up. And so there’s a large mass of people there at any given time and I think any way we can get in and capitalize that a little bit more or control some of that I think that’s a good thing for us. So, I support that.
CITY MANAGER GONZALES: With that then I will turn it over to Andrew who is going to give the report for Economic Development.
MR. NAVE: Well, thank you and good evening. I want to start by reviewing also our -- what you’ve seen a little bit before. These haven’t, as Linda alluded to, these haven’t changed very much from the strategic objectives from the board of directors and that are also kind of shared and overlap with your strategic outcomes.
[Strategic Objectives slide]
We really focus on five key areas and five key objectives for the Economic Development Council. One is to Attract new “basic” industries to the community, trying to attract new employers to the community. If you remember, our terminology there when we say basic industry, that’s any business that exports a majority of their product, their goods or services out of the market that they’re located in. So it’s again that concept of bringing dollars into our economy is a good thing. And so that’s what we’re trying to attract.
We have to work to Retain our existing employers and help them expand. Much like many private businesses, the majority of your customers are going to come for your existing customer base. The same premise is true in economic development, so we spend quite a bit of time on that.
And we can’t do the first two, attracting or keeping companies and growing them without a place to do that, so we spend quite a bit of time on Development. And comes in many areas, whether it’s residential or commercial, but we work heavily on finding commercial development opportunities so that we have a place for a new investment.
And then we work on promoting and Marketing the community. That comes in the form of a lot of different things, but that’s advertising. That’s media. That’s social media, websites. There’s a lot of things that fall into kind of that bucket of promotion and marketing.
And then we also work on, as a public-private partnership, we work with our private EDC members to kind of leverage the resources that the City provides to do even more economic development.
I’m pleased that we’re over 74, right at 74-75 EDC members, private sector members now. Pay at different levels and different investment scales. We had six new investors last year that joined the EDC which was positive. Going back to 2009, we had 50. So, we had a 50 percent increase in our private EDC investors over the last few years, which we’re certainly pleased about.
[Metrics - Attraction Prospect Files Opened slide]
I’m going to show you a few graphs. Not to get overly dorky on you as an economics guy on graphs, but I have a few graphs. Our EDC executive committee has the whole -- this is coming out of our CRM database that tracks really everything with our prospects and our projects, but just a few of the highlights. In terms of the attraction, prospect files that we open. And what we consider when we’ve opened a file and we’ve opened a prospect, we consider that when we’ve engaged the company directly or their representative. Either a real estate professional or an attorney or a consultant or somebody that’s representing that company and we know two things. Number one, that they’re actively considering a project and actively considering Shawnee. And number two, that we have assisted in some direct way. Maybe that’s help with real estate. Maybe that’s answering questions on state local incentives. Maybe that’s questions about zoning or things that the City processes or connecting a resource to them. But we’ve helped them in some tangible way. That’s when we open a prospect file. So, you can see kind of the trend line there. It’s kind of been up -- I know we’ve held, you know, really fairly steady over the last couple years. I’m pleased to report that this year 2016 is actually up about 25 percent year to date on last year’s numbers on 2015. So, we have 19 attraction prospect files opened. We also track our retention projects, our existing companies in a different slide. But obviously we don’t have as many of those because we just don’t work as many existing companies as we do the sheer number of new inquires.
[Metrics - Prospects by Type of Industry slide]
So, we also track those by type, by industry types. We try to break down what are some of the trends and what we’re looking at in terms of by type. So, you have office and call center there on kind of the left. Other industrial, distribution and manufacturing there on the right, and even retail. So, we tracked that over the years. You can see the Chamber board and the EDC committee has heard me talk quite a bit about our deal flow and our prospect activity follows very closely with our availability of space. So, when we have an office availability like we’ve had over the last couple of years we get more office inquiries. Those brokers, those consultants will call us back or they will bring us projects when they know we have a viable option.
The same can be said on the distribution. Other industrial, distribution, manufacturing, kind of up and down. But we have seen strong interest in Shawnee because of the Westlink development out in Western Shawnee. That has really sparked a little bit more activity, so.
[Metrics - Prospects by Lead Source]
On lead source, what we call lead source, where do we hear about these projects? How do we get into these deals? How do we get into these prospects and these projects? Kind of all over the board, but KCADC, that stands for Kansas City Area Development Council. That is the regional economic development group that’s selling all of the Kansas City Metropolitan area. We are an investor in theirs and heavily involved with them. I chair one of their committees. KCADC, those leads over the last couple years, and certainly 2015 in red have been up conversely.
KDOC is an acronym for the Kansas Department of Commerce. So, there’s economic developers that sell the whole state of Kansas and try to promote Kansas as a destination for investment. Those leads are down. Some of that is a function of, quite frankly, budget cuts. They went from five recruiters selling the state of Kansas across the country to two. And so we just don’t see the deal flow that we used to see from the Kansas Department of Commerce.
We’ve also seen a big uptick in our leads or prospects that we get from EDC investors themselves. Some of that is a function of having more EDC investors than we used to, but certainly engaging with them.
[2015/2016 Accomplishments slides]
Jumping to our accomplishments, 2015/2016 Accomplishments. Been pleased. It’s been a really good year. Again, on the attraction projects, 45 attraction projects. We have five new retention and expansion projects last year. Four of those we are still actively working. It’s also good to mention both attraction projects and our retention expansion projects oftentimes track many, many years. As you would imagine a real estate decision, a major capital investment, those decisions can take quite a bit of time. In fact, one retention project we still have open from when I first started five years ago. And that project has been opened and then shelved and then tabled and then brought back. And so we’re still -- sometime these projects take quite a while. Of the five retention projects this last year, we’re still working with four of them. So, I’m still hopeful on four of them.
One of them was through, you’ll hear me talk a little bit later about the DeviceShop. One was an office user, In Hand Health, I know they don’t mind me sharing their name. They wanted to stay in Shawnee. They loved the community. They loved the engagement of the DeviceShop, but they only -- they couldn’t find office space in our community in the eastern part of our community. They didn’t want to go further west and so they ended up relocating out of Shawnee because there just wasn’t office availability. So, it makes -- some of our conversations we’ll have about new office development, and specifically around the Nieman corridor, very, very important.
We host obviously a number of events for our EDC membership, networking events. On the marketing side we last year created an interactive map that’s right on the main part of our website and our home page that highlights 20 different projects, public-private projects, but kind of highlights what’s going on from an economic development standpoint.
And then part of our business retention and expansion strategy, you see there at the bottom the employee appreciation event which is the photos there that I know Councilmembers Meyer and Kenig joined me on as well as the Mayor, that we do every year around Labor Day. Done this for three years now where we take kind of the Labor Day holiday and we basically use this as an opportunity to thank the workforce of Shawnee. Thank you for working in our City. Whether you live here or not, thank you for working here. And that’s mainly about just that about, about appreciating the workforce, but also kind of an indirect way to, you know, support those employers who are always trying to find ways to encourage and appreciate their workers. And so that really helps strengthen the bond we have with those companies and with those HR teams, so that’s been really good. We had -- it was a little bit of a hot day last year when we did that, so I appreciate their support. We had 13 different stops. What we did was we did kind of an ice cream social. So we actually hired, I didn’t think it would work, but it actually came off really well. We hired an ice cream truck, an ice cream van, and we had 13 different stops where we moved across, really kind of southern and western Shawnee and visited with 35 companies. Over 350 employees were greeted and appreciated kind of by our crew. So, it was very well received. We got e-mails for weeks on it.
A few other accomplishments. As Linda and Kevin mentioned, kind of the rebranding. Also the EDC logo and our marketing materials on that, still happy and taking place, but that’s been very well received. We distributed back in the fall a wage and benefit survey. Again, part of our retention and expansion strategy. We contracted with an economist to help us pull together a survey. There are other tools and instruments out there that look at the county level or the regional level, but we decided for our employers what are the going wage rates and what are the benefit structures for our employers. And then we shared that with over 200 Shawnee employers. So, that was extremely well received.
Worked on a number of commercial development projects that again are also -- have kind of a long lead time, we won’t get into all of them, but certainly Shawnee Crossings, Westbrooke Village, Shawnee Mission Parkway corridor. I mean, a number of commercial development projects that we kind of worked on throughout the year.
Something that you all approved kind of at the end of ‘15 and into the beginning of this year was updates to the SEED incentive program. So kind of enhancing and improving our incentive programs was a key part of our year. And then you can see just to kind of graphically a few of the attraction company, just some of the new companies that came into Shawnee. And when we really kind of considered their actual decision final, Nuts and Bolts is one that’s been on there for -- we’ve talked about for a couple of years, but they committed to that lease the middle of last year. So, kind of in ‘15, those are companies that kind of put the stake in the ground about being in Shawnee. So, just a quick highlight of some of the accomplishments.
[2016/2017 Work Plan]
Getting into our 2016/2017 Work Plan. We really want to -- we’ve continued to, but we’ll certainly ramp up and reengage Westbrooke Village at 75th and Quivira. That’s a huge priority to the EDC and I know to the community at large. We’re actually visiting with some representatives from that ownership group here at the end of the month at the ICSC show. Don’t have huge high hopes for the outcome of that meeting, but we want to continue to push them and engage them on we want you to redevelop your asset. We want to help somebody redevelop that asset. That’s an important development to us.
Certainly on the industrial side, the Westlink second building and EcoCommerce is something that we’ve kind of reengaged and started to work on.
The Nieman Road corridor and the 435 corridor are two kind of areas of mixed use and office development that we’re spending a lot of time on because that’s where the product is right now. We’re getting some activity there. So, those are going to be a major focus over this year and next year.
Some new initiatives and new things to talk about. Kind of expanding on some of those development projects as we want to take some tangible steps with what I call kind of site development assistance, so really using some funds and some resources to augment what we’re already doing on the development side, but more than just kind of being a connector in a network, but finding resources. So, things like last year we were one of the first EDCs in the Midwest to utilize a new software tool from MasterCard. MasterCard has a location information system basically using consumer expenditure data from MasterCard credit cards and they kind of couch it and don’t reveal confidentiality, but they kind of aggregate the data. And then you can see in your community what the consumer spending patterns are like. Well, we were one of the first to use that and we really just started to use it, but we intend to kind of maximize that and use it even more this next year. Very expensive tool. Usually the big, super big real estate firms are using that tool, but we were able to get them to kind of give us a cut-rate deal because we’re a non-profit and it worked out very well.
Destination Attraction Consulting. Something that we want to try. There’s a niche world out there of these what I consider destination attractions, these big developments. The ones maybe most common off the top of your head are in the paper, the hockey arena project that was announced a couple weeks ago, or the food salt project that was announced several months back. Those are big mega projects that have a huge impact from a -- not just a tourism standpoint, from an economic development standpoint. And they’re, as you can imagine, those big projects, they’re closely guarded secrets and they’re not spread around very much. We have our eyes and ears out there, but we just can’t hear everything. So, what we want to do is engage that in a deeper way. And whether it’s bringing on other outside resources or bringing on some expertise to know who are those destination attraction retailers or developers or projects and we want to get in on those deals. We have in the past and, you know, there’s always stops and starts, but we want to take that to another level.
And then another real specific thing, kind of the last three bullet points I want to hit on is we want to engage in an entrepreneurship in a deeper way and a more specific way and even potentially reaching out and extending with more specific resources from the City. But KC Next is a regional technology group that we have had a little bit of experience with, a little bit of engagement. We want to do that more.
Certainly promoting the SEED entrepreneurial tool. The SEED program is unique. Again, we leverage heavily that we’re one of the only communities in Johnson County and the metro that have a program like that. But we want to take that to the next level specifically with entrepreneurs.
And then the DeviceShop. The DeviceShop is our, kind of hardware incubator. Kind of a co-work space that we have in eastern Shawnee and we definitely want to take a bigger step with them. I think you all received an e-mail, an invitation. So, this Friday night is actually a really exciting thing with the DeviceShop and something that we’re helping with and kind of supporting them in with KCStartup Crawl. It begins this Friday night. And that’s an event that was mainly held in the Crossroads last year. Huge event. Had several hundred attendees of entrepreneurs and growing companies and young companies that was just what it sounds like, like a pub crawl, but it’s a startup crawl, moving around the Kansas City area to different locations. Well, they expanded the locations this year and the DeviceShop in Shawnee was one of the only locations in Johnson County, really the main location in Johnson County that got selected. There is a location in Johnson County that’s on State Line Road, but that’s practically the Plaza. So, we’re kind of the Johnson County location for it. We don’t fully know what to expect. We’re expecting at least a few hundred, but potentially more entrepreneurs this Friday night. So, that’s an exciting thing for our community, kind of takes us to a new step. But it takes some resources to do that, so we’re doing that kind of patching it together this year, but we certainly want to expand that in the coming years. So, very excited about the opportunities with the DeviceShop. So, just a few highlights and some of the things that have gone on and things we want to do. So, happy to stand for questions if there are any.
COUNCILMEMBER MEYER: Thank you, Andrew. Any questions? All right. Thanks.
[Fund 217 Economic Development Fund]
CITY MANAGER GONZALES: Again, just to talk through the Economic Development Fund, which again the contract with the Chamber for SEDC services is one of the things that are in that fund, but there’s a number of other things. And I think highlighted in your packet and just to highlight a few of the expenditures and placeholders, we really do quite a bit of placeholding, which has been good because then many of those things are now starting to come to fruition. But just as a reminder, things that are in that fund as placeholders, we’ve got still $1.2 million sitting there allocated, dedicated towards the railroad crossings. And I think gave you an update of that just recently. But we are progressing and so hopefully that will move forward in ‘16 into ‘17, and hopefully get all four of those closed. That’s the goal.
There is $80,000 in there as part of the Nieman Road project and that Nieman Road re-striping, which just because it’s there doesn’t mean we’re going to spend it. We’ll have another conversation about that before that time comes, but that is budgeted in the Economic Development Fund.
We have numbers in there for SEED agreements that you all have approved already, and some for future ones that we hope will come such as the Shawnee Crossings building.
We have some money allocated in there just for the Westbrooke Village redevelopment. As Andrew said that’s been a high priority for a long time. And should opportunity arise we would like to have some funding in there to do some private-public partnerships. I’m not sure what that’s going to look like, but we’ve been having it on our radar screen.
Also EcoCommerce, one of our long-term planning projects. And there’s still money placed, held in there for infrastructure assistance for that project.
Westglen Shopping Center, something that I think you will be seeing soon and one we’ve talked about for a while, the rehab of the theater and of the shopping center area there. And so we’ll be bringing that to you in the next hopefully few weeks. And we’ve talked about doing that as kind of a TIF-lite, so not a legally statutory TIF, but a TIF that’s funded through the City and the partnership with the Westglen in anticipation of revenues received. So, hoping to bring that to a committee either in June or early July.
Then the Chamber contract for Economic Development services. And then there’s some, as Andrew mentioned, the entrepreneurial stuff. There is some additional funding we’ve identified as a placeholder for those entrepreneurial activities. Whether that be us doing them or the SEDC doing those.
And then also that’s -- this is the fund we use for design and marketing studies, which is really helpful as we meet with developers to have some ideas of what would you like to see there. Maybe we can have some pretty pictures done. It’s come in very handy.
[Debt payment for development-related street projects slide]
Bigger picture and things that are committed at this point. For the first time in the last, starting in just the last year, begun to look at debt payments for infrastructure improvements that stimulate economic development, which is a very appropriate use of this fund. And you all have had those conversations.
So, there is bond payments in there for Clear Creek Parkway. We are showing right now in the forecast those bond payments for four years and then phasing back over to the Debt Service Fund. We’ll have to have those conversations in the future, but it would be nice to not just allocate away the Economic Development Fund for a period of the whole ten years of the bonds.
The Nieman South Creek realignment, and we’ve talked about it a couple times tonight and you all had the meeting several weeks ago and determined to move the creek north so we could provide more developable ground on the parkway. So, that additional amount of the $1.6 million is programmed in the Economic Development Fund.
The Nieman Road actual construction of the reallocation project yet to be defined fully, but there is allocated in the fund $3.8 million, and then that would be a CARS project was on the CARS list you all approved a few weeks ago.
And then the EcoCommerce of 43rd Street, and that’s part of the infrastructure that may become necessary if we have a developer interested out in the EcoCommerce. So again, we’ve got a placeholder for that.
So, that’s the actual forecast. You have the big forecast in your notebooks. I don’t know if there’s any questions on those things.
COUNCILMEMBER MEYER: All right. Thank you.
CITY MANAGER GONZALES: Okay. Okay. I want to thank the Chamber, and not that you guys have to leave, but thank you all for being here. We truly appreciate our good partnership and all the work that you all do and it’s a very good relationship for the entire community. So, thank you for being here.
CITY MANAGER GONZALES: So, we’re going to shift gears a little bit. Start through the City-wide work plan. As I said it’s a draft because we still have kind of a draft budget. But the bulk of this work plan are things are integrated into our work over the next year or two. And these were listed in our packet so I won’t elaborate much, just on a couple of them that I think are interesting. Of course, I think they’re all interesting.
[Safe Community slide]
Safe Community. Under the result of Safe Community, continue and emphasize our efforts in the next phase of the Emergency Operations Plan. With Terry Keegan leaving the organization has a little bit of a lull right now, but we’re working to fill that position and get back up and running and get that plan and training moved on to even the next level up.
[Effective Mobility and Reliable Infrastructure slide]
Effective Mobility and Reliable Infrastructure. Several things under this. The first bullet is one I just spoke of related to establishing a quiet zone and closing two more crossings. The 59th Street has been closed. And then creating a public crossing is our goal at 73rd Street to silence the horns in Western Shawnee.
You all approved a contract with -- a partnership with Unite several months ago. And so IT is working to complete that fiber network. And that funding was in the Technology Reserve Fund. So, it’s a very good add to our system.
Continue to provide educational information to the community. We know that stormwater, we’re not going to solve all those problems this year. It’s going to have to be a continued effort. We hope we can make a dent at getting started. But Doug and Mike will continue to provide good information and we’ll begin -- continue to push information out.
Finish conceptual plans and apply for grant funding for the Turkey Creek Trail. You’ve all attended some meetings recently. The concept is there and almost complete now. And so this next phase would be the conceptual plans. And several folks attended a grant conference today to learn how to apply for a grant for the actual construction, which would be great as our intent and hope would be to apply for that grant and get that grant and just keep moving that project forward.
[Economic Growth and Vitality slide]
Economic Growth and Vitality. I think that Andrew covered a lot of these. Shawnee Crossings development, Westbrooke Village, EcoCommerce, Nieman Road. That last bullet is a goal that Dave and I have had. We get lots of kudos for being very streamlined in our planning processes and our development processes, but we always think we can keep getting better. So, one of the things I’ve asked Dave to take on is to work with our planning and Development Services folks to just look at what we’re doing, make sure it is as streamlined and efficient and good as possible. So, good project for next year.
[Attractive, healthy and well-maintained community slide]
Attractive, healthy and well-maintained community. You heard about the ASSIST program several months ago and that group is getting up and getting running, beginning to identify what kind of data that they will need to make decisions in the future. And then from that develop a strategic plan that we’ll come back to you all on. And we’ve talked about some of the components that that could be more proactive code enforcement, rental registration, those kinds of programs. And there may be other things that come out of it as they really begin to look at the data.
Complete and implement a corridor beautification plan. This is a project that has been discussed through the downtown programs and the Shawnee Mission Parkway corridor programs we’ve done over the past few years. We’ve heard about it. And the Mayor’s coffee, there’s several people that have mentioned, gosh, it would be nice if the parkway looked nicer. It’s our gateway. So, Neil worked on developing some drawings and concepts for that. This isn’t a project that’s in the budget now. It’s kind of a new program idea. So, as Neil presents his Parks and Rec stuff next meeting, he’ll just show you some of those concepts and talk a little bit about potential price. So, that’s why this is a draft plan because that might come off the list.
[Quality cultural and recreational opportunities slide]
Cultural recreational opportunities. Charlie and the Friends of Shawnee Town and the Shawnee Town staff have been working very hard on the next ten-year strategic plan. It’s hard to believe it’s been ten years since we did the first one. But it is near final and that will be coming to a Committee meeting soon near you.
[Environmentally sustainable and well-planned community]
Environmentally sustainable and well-planned community. We had targeted maybe earlier this year to coordinate with Johnson County and just look at all our solid waste ordinances. We kind of set that as a goal several years ago when we changed the procedures that let’s go back and revisit it in two or three years and see how it’s all moving along and is there any changes we wanted to make. We just -- we haven’t gotten to it. And then with the SUP for the landfill coming up, we felt like it was kind of time to maybe take a step back and wait. Now, of course, Katie is leaving, so that’s going to delay it just a little bit more, but we’re going to get on that and try and bring forward to you just a review. We’ve had several issues that have been brought up by the community and by you all of things that maybe we want to look at and tweak.
Community Gardens. The Parks Department has been helping in supporting some of our schools and setting up community gardens and going to continue that. I think when Shawanoe is complete -- is Shawanoe the next one on the list? And then maybe even Broken Arrow. So, it’s a great partnership with our schools.
Implement the CityWorks permitting land and licensing, lots of technical terms here. This is our Citizen Service Request system, our permitting system, the software that we’ve talked -- you all have seen and heard us talk about now for several years, and we’ve been phasing it in bit by bit. And so these are the phases that we are going to try and get up and running in the next year.
Feasibility of a wetland mitigation bank. We’ve been looking at that and then with some of the quiet zone issues we kind of stopped and held back a little bit to see actually how much property we end up owning in that area, and then we want to resurrect that study and commence it and bring forward to you whether that’s a feasible idea or not.
And then good governance. We’re always working to think about what’s most important for us to work on because we try to focus on certain things so that we’ll have impact and get them completed. There’s many things we’d like to do. But got a good list here of just internal organizational things that we think will enhance our efficiencies and our ability to get work done. The communications plan that you all have heard about, the performance measures that you all saw, a more comprehensive records storage program.
Leadership program. We continue to have people retiring and so our succession planning is a very important thing for our organization. We’ve got a really awesome leadership program right now. I think 15 people in that program of young leaders in our organization. So, it’s really turning out great. Liz has done a fantastic job with it.
We’re getting close on bringing the forms to you all to make the choice on iPads. We’ll get those up and running I’m hopeful in the next two months.
Plan for the website design. We kind of played with that as a little bit as the budget got tighter and tighter to fit things in, but we think that we can at least begin that process this year and hopefully do a more robust redesign in the next year in ‘17.
Asset management. We’ve good systems in place now. But like I said we can always do better. And so one of the tasks Finance wants to take on is to work with all of our departments and make sure we get our asset management processes in place. And some of that has to do with that CityWorks program. We currently have three different databases where we track vehicles and their VINs and their insurance and all the data that we need. And we need to get all those streamlined into one system. So, they’re going to take that on this year.
That’s the work plan. Any thoughts, questions? Anything we’re missing, anything you’d like to see?
COUNCILMEMBER MEYER: Brandon.
COUNCILMEMBER KENIG: Thank you, Carol. I had a question. Is there any funds allocated of the website redesign this year, or is that into 2018?
CITY MANAGER GONZALES: It’s at least in ‘17.
COUNCILMEMBER KENIG: Okay.
CITY MANAGER GONZALES: In the Technology Fund. Our concern is that there may be some other things that might eat into that. But it had been in there and so we’ve retained it in there for now.
COUNCILMEMBER KENIG: Okay. Great. And I mean, my only suggestion, recommendation would be that I think there is a lot of potential with the website redesign to really organize and repackage all of that content and make it more easily, searchable, so I mean anything to get that going I think would be great.
CITY MANAGER GONZALES: Great project.
COUNCILMEMBER KENIG: And I know a lot depends too on the new Communications manager as well who can come in and kind of spearhead that, too.
CITY MANAGER GONZALES: Yes. Yes. Absolutely. It’s a great project, much needed.
COUNCILMEMBER MEYER: Any other questions from the Committee? All right.
CITY MANAGER GONZALES: Okay. Switch gears again. I want to do our annual comparisons that we show you. I named these today and I can’t believe I didn’t think of it before, but these are the Montag measures. And for those of you that have been here long enough to know that these have been around forever. And they are truly do -- are like Gary was. They’re very simple, very direct, very clear. And so they’re really cool measures. And so we don’t like to let them go. And I think, you know, the whole point of looking at these kinds of measures is are we on target. Are we comparable with our peers and what kind of differences are there? Why are those there, and if there are any changes we need to make because of that. So, we did something a little bit different this year. We did track with all of our core cities as we call them, the folks we compete most with for economic development, for employees and staff. And so this is just a comparison of the populations which as you can see, and as you know, all different sizes of cities. These are all first class cities in Johnson County, but all different sizes. So, what we thought would be interesting then to look at three different cities in other suburban areas that are similar to Shawnee and more similar in size. And so we selected three different cities, and we have used them before for some salary comparisons, West Des Moines, Iowa, Johnson City, Tennessee, and St. Charles, Missouri. So, you can see then when you look at those populations, we tried to really stick with populations that were a little more comparable than us. And we did look at the functions that they provide to make sure we were comparing apples and apples. So, similar to Olathe, when we pull out their wastewater and their solid waste people and their budgets as we compare with them. We pulled out a few things, but truly most of these cities were very comparable with us in the services that they provide.
[National Cities Comparisons - Square Miles slide]
So, I’m going to just show you two versions of this. So, then square miles. Again, varying square miles with the cities who are in our neighborhood.
[National Cities Comparisons - Population slide]
And then more comparable, you can see there St. Charles is a much more dense city with the same population as us, but not quite half the actual physical size. So, that’s kind of an interesting factor to think about.
[Core Cities Comparisons - Expenditures Per Capita 2016 Budget slide]
So, then we start looking at the measures of expenditures per capita and across the board. And this is typically how we fall out right with Overland Park in terms of total budget divided by population.
[National Cities Comparisons - Expenditures per Capita 2016 Budget slide]
So, then if you look at the other cities, just interesting to look at. Again, we were below these other three cities, but a little less variation between them than the other communities in Johnson County.
[Core Cities Comparisons - Expenditures per Square Mile 2016 Budget slide]
Expenditures per square mile. Again, total budget divided by our 42 square miles. If you all remember this is a number that we used to be way low on in the past. And this budget year it does take into account the pavement sales tax which helped boost that number up, which makes I think all of us feel a lot better that we are investing in our community and in our infrastructure better than we used to.
[National Cities Comparisons - Expenditures per Square Miles 2016 Budget slide]
But again, different numbers for the cities. And then these again a little more comparable to us which is kind of interesting to think about, although St. Charles, Missouri, I think is a pretty wealthy community. Invests a lot per square mile.
[Core Cities Comparisons - Employees per Thousand Population 2016 Budget slide]
Employees per thousand population is one that we always come in low. I think we all know that we’re a very lean organization.
[National Cities Comparisons - Employees per Thousand Population 2016 Budget slide]
And then compared to these other cities, which again was real interesting to me.
[Core Cities Comparisons - Employees per Square Mile Budget 2016]
Employees per square mile. That’s where you’re noticeably lower on this one, which I think again is kind of like that investment per square mile. It’s a little concerning and kind of paints that picture of it is very hard to keep up that stormwater picture of we’re not really quite keeping up with the infrastructure that is within our area.
[National Cities Comparisons - Employees per Square Mile Budget 2016]
And employees per square mile. And again then, St. Charles was such a small area, but we did a little bit of research on them. They do do quite a bit of mutual aid. In the Public Safety side they have quite a large fire department, but they also have implemented that full squad system where they have the smaller vehicles that run on the medical calls. And so that pushes their staff numbers up because it does take more staff to run that system.
[Johnson County Mill Levies slide]
Then this is an interesting comparison. We haven’t ever plugged that in, but since we’re going to talk about mill levies moving forward with the budget, I thought it was important to include. These are all the Johnson County cities. And I think as you -- some look at them -- if you just look at the city mills and forget those smaller cities in northeastern Johnson County are served by Consolidated Fire District No. 2, which is the 11.757 mills, then that gives really the total mill levy comparable to our mill levy for service levels. So, you can see that we are the fifth lowest in Johnson County, which is -- and then quite a variation between the cities. We all know Overland Park has always been very low. They have an incredible sales tax base and also just a large tax base. And Roeland Park, we’ve watched them over the past few years as they were -- have been afraid of losing their Walmart and they did raise their mill levy I think six mills two years ago in anticipation of that happening, so that kind of has bumped them way up on that top end. So, that’s that piece. Any questions, comments, thoughts about comparisons? Are those other cities helpful? Is that interesting to look at the --
COUNCILMEMBER VAUGHT: That’s [inaudible; talking off mic].
COUNCILMEMBER MEYER: Jeff.
COUNCILMEMBER VAUGHT: You know, just a comment on that. One thing that’s interesting is you could probably go out, and I’m sure you could find a city like Gary, Indiana that you could say, well, look, they don’t spend as much per capita or per resident or per square mile as we do. But, you know, half their city is boarded up and they’re in a little bit of a decay. So, you know, when we look at West Des Moines, I mean, if anybody has been to West Des Moines that city is happening. That’s the, you know, Lenexa of, or Leawood or south Johnson County of Des Moines. And when you talk about retail every up and coming restaurant, retailer, hot thing, it’s in West Des Moines. And, you know, if you ever travel through, get off the highway and go cruise around it. That city has got it going on. So, when we’re going to compare to somebody that’s the cities I want to compare to because I think that’s what we need to aspire to be is somebody like that. I don’t -- I’m not familiar -- I’ve been to St. Charles. A little bit different looking field. But West Des Moines, when we look at a Midwest city, and it’s interesting how we close in compare in size. But that city I think we should really, you know, you could key in on and look at comparisons because that city is doing it right. And they’ve grown massive in the last 20 years. Twenty years you went through West Des Moines and there was nothing. And today it’s just -- it’s exploded.
CITY MANAGER GONZALES: Okay. Maureen is going to finish up with her review of the forecasts. And we heard what you said about not wanting to go line by line with all those great big forecasts. So, she’s just going to hit bullets of highlights similar to what I did with the Economic Development Fund. But you do have the hard copies in your notebooks. And as you look at them over the next few weeks be sure and holler if you have any questions, then we can come back at the beginning of the June 7th meeting, too, and review and answer any questions you have about that.
MS. ROGERS: We mentioned this last time that there are some funds that are very similar in structure and content to what they were last year. And if everyone is kind of okay with how those look, we won’t spend a lot of time on them. I will mention on the Special Narcotics, the revenues and expenditures have been reduced, at least temporarily on that, just -- we haven’t been as fortunate I guess just lately. And it kind of depends on what type of situation with the crime situation that you get different dollar amounts for your drug forfeitures. So, we expect those to go up, but we’re just showing this forecast not exceeding the revenues that come in. So, that’ll be adjusted as that changes.
[Forecast – General Fund slide]
And then the remaining funds, we’ve already talked about the first two. The General Fund, I just want to kind of -- this is a really high level view. Next time on June 7th, there will be a pretty comprehensive discussion about what’s in the General Fund as well as the other funds, we’ll be presenting by function. For instance, Police will talk about everything in every fund or whatever -- across the funds, maybe not every single thing, but the highlights across all the funds that pertain to them.
In the General Fund as always we try to achieve a balance between having adequate reserves and protecting our Aa1 bond rating and also protecting our assets, making sure we have the equipment we need to perform services, which is why we’re here, and just looking at the different constraints and challenges that we have as far as providing service and trying to come up with the most sound budget structure that we can, and also keeping in mind that historically for many years we have ended up not spending all of our budget every year. So, if we were to project a high fund balance all the way across what we would actually have is a fund balance that grows. And each year as actual conditions happen, we pull back or adjust as we go.
In 2016-Revised, we did reduce both revenues and expenditures from 2016 based on the fact that we didn’t quite hit our revenue in 2015. I was just at a meeting with the finance directors in Johnson County and the county itself as well. And we’re all kind of seeing the same type of revenue situation where we’re just not quite sure on sales tax where it’s going. It may well recover in the rest of the year. Everybody saw a couple of months that were not that great and then it’s improving. But it’s a little early to say. So, we tried to be conservative in how we structured 16R and kind of, as I mentioned the last time, kind of catch our breath a little bit and reduce some of those. So, the expenditures were reduced in 16R accordingly.
And we’ve talked about mill shifting from the Debt Service Fund into both the General Fund gradually over time, and the Public Safety Equipment Fund. So, this forecast reflects that. And so it -- the revenue and expenditure disconnect begins to lessen as the years go on there.
These are some numbers that just kind of tell you a little bit of, I’m not going to go through all of these, but just how the budget changed from year to year. In 2018, going forward, some of the assumptions, the property tax, we have a very conservative estimate of 1½ percent. That’s just based on the unknown effects of the tax lid. We talked today about the tax lid and different approaches. And as we find out more about how that actually works, when I told you last time that we have a large Excel workbook that will be coming out in the fall and the State Department of Administration will be going over some of that with us, how they’ve put that together. And I would liken some of this to like when you take your income tax to your tax preparer and you look for ways to legally just have the most favorable type of tax return that you can. I would say this would be the approach. As we find out more about it. We’ll look at the Debt Service Fund. And as we find out more about some of those exemptions we’ll -- some of that will come into play there. Sales tax, two percent. And the expenditures going across are at two percent.
[Forecasts – General Fund Reserves]
Okay. And so reserves. 2015 actual fund balance came in at 51 percent. We had budgeted 15R to come in at 46 percent and that’s the fund balance as a percentage of revenues in the General Fund. 2016R is at 42 percent and compared to budget ‘16 last year, which was budgeted at 36 percent. And so that increase goes across, the increase from ‘15 goes across the forecast there. And 2017 is budgeted at 32 percent, which exceeds the PS-66 policy target of 30 percent. And that is very likely to end up higher because the City doesn’t spend its entire budget. And then as I mentioned what the effect on the future years.
[Forecasts – Public Safety Equipment Fund]
Okay. Public Safety Equipment Fund. If there’s a -- first of all, are there any questions on the General Fund? Okay. Public Safety Equipment Fund. Rather than the fire trucks being cash funded, which requires a pretty big push of cash early because our next truck that is up for replacement is a big one. I think I mentioned this a little bit last time, too. There is a shorter term debt than the ten-year that we had been using for leases and using some of the short term. Mills shifting over the term of the forecast from 0.6 to 1.4 mills. Basically there’s an additional mill needed to adequately fund the equipment in here and make this fund self-supporting.
COUNCILMEMBER KEMMLING: Maureen.
MS. ROGERS: Parks and Pipes, and we talked about this a little bit earlier.
COUNCILMEMBER KEMMLING: Let me go back to that Public Safety Fund real quick.
MS. ROGERS: Sure.
COUNCILMEMBER KEMMLING: In our packet it says shift a mill to avoid transfers from the General Fund. What’s the difference between adding a mill to a fund versus just transferring from the General Fund?
MS. ROGERS: Well, just kind of clarity. There has been a small amount of transfer from the General Fund and it would just be easier to understand, clearer to just have it be self -- the goal has always been to get that fund self-supporting. There are transfers, they’re really just in the -- in 16R, ‘17 and ‘18, so.
COUNCILMEMBER KEMMLING: So, by the mill that you’re going to shift is one that would have gone to the General Fund?
MS. ROGERS: Uh-huh.
COUNCILMEMBER KEMMLING: So, it’s still a transfer from the General Fund, it just isn’t a line item.
MS. ROGERS: Well, it’s not one of these transfers that double counts on the books basically.
COUNCILMEMBER KEMMLING: Right. Okay.
MS. ROGERS: It’s kind of the mechanism. You could achieve it either way. And we kind of talked about this a little bit earlier about Nieman South being accelerated. And 16R includes $185,000 additional funding. There was $200,000 already for the Connect Shawnee trail project.
[Forecasts – Parks & Pipes slide]
And also earlier, to answer the question, I was just kind of speaking generally about kind of Parks and Pipes taking turns in that fund. Actually in ‘17 and ‘18, both Parks and Pipes are saving up for a bigger project. What we do in these forecasts is take the projects and the timing from the departments and then fit them in with the cash flows and they can be adjusted as we go. And then the conversation at the Council meeting last week regarding the Nieman pipes projects, we’ll be bringing you an alternative forecast at the June 21st meeting that would show some possible options for debt financing to accelerate the Nieman Road projects for your consideration out of the Parks and Pipes rather than waiting and saving and cash funding.
[Forecasts – Stormwater Utility Fund/Equipment & Facility Reserve Funds]
And then we’ve kind of talked about this too. The forecast, as it is presented here has, of course, no increases added into it at this point. It’s the current $36 a year for residences. And then we kind of already talked also about the personnel going up and the repair dollars going down.
Equipment and Facilities. That’s part of some of -- a pretty significant part of how we reduced expenditures in the General Fund for 16R was pulling back a little bit, not a whole lot, but on the transfers to the Equipment and Facility Reserve Fund. And what is in this fund will be talked about by the department heads when they present their budgets. I won’t get into that because we’ll get into that on the 7th.
[Forecasts – Debt Service Fund slide]
Let’s see. Debt Service Fund. Increasing capacity by 2019. That’s kind of consistent with what we’ve been saying. Sometimes it seems like we’re just chasing, like we always have, a couple more years we’ve got to get past before we get to where we want to be. We’ve been saying 2019 for quite a long time on this and I think that’s actually still true. And the forecast shows mills shifting about 3½ mills over the ten years.
Also there are some projects that we plugged in just kind of to see what they would look like. And all of these that are plugged in are ones that we’ve discussed in some way or another. So, there are projects plugged in that you can see if you look at the forecast. And also there is an increasing fund balance, too. So, there’s some capacity out there that isn’t programmed at this point.
So, some of the forecast projects that are included is the Holliday Drive pipe in ‘17. Monticello South, that was in the CARS approval. And then you may recall, we didn’t really talk in depth about it tonight, but when the Stormwater presentation was done a couple months ago there was discussion about a large catchup stormwater bond. And so we plugged that in just to see what that would look like. And Clear Creek Parkway, possible shifting if everything happens in the Economic Development Fund that we hope might happen. And then Johnson Drive, that’s just another CARS project. We wouldn’t really likely borrow a project that small. But if we were already doing a bond issue, we might add it on to that. But it just helps us keep track of it.
COUNCILMEMBER MEYER: All right. Questions from the committee for Maureen? All right. Thank you.
CITY MANAGER GONZALES: That’s really all we have to present tonight. And I did want to ask, we sent -- I sent several documents in your e-mails on Saturday that weren’t necessarily in the packet, that weren’t in the packet, but will be out on the website under the title Handouts. And so I don’t know if you had time to look at those, but if you have and have any questions about those, we sent the detailed line item for the Professional Services line item, for the Land Improvement Maintenance line item, and then the ten-year fund history that Councilmember Pflumm had requested. So hopefully you all received those. And as you look at those, if you have any questions. The other item that we didn’t talk about tonight, but that was in the packet that I’m very proud of, so I do want to make sure I mention, but I hope that you looked thoroughly through the 2015 Accomplishments because every year when we put that list together I am amazed at how much actually gets done thanks to these folks out here and it’s a really great list. So hopefully you had time to look at that, too.
So, next meeting we will have department functions, function presentations and we’ll begin to talk a little bit about how the pieces are going to fit together.
COUNCILMEMBER MEYER: Great. Thank you, Carol. All right. Is there any further discussion from the Committee?
COUNCILMEMBER SANDIFER: Motion to adjourn.
COUNCILMEMBER MEYER: Just a sec. Hold, please. Is there anyone from the audience who would like to speak to this item? All right. Seeing none, that concludes our agenda.
C. ADJOURNMENTCOUNCILMEMBER SANDIFER: Motion to adjourn.
COUNCILMEMBER JENKINS: Second.
MAYOR DISTLER: A motion has been made and seconded to adjourn. All those in favor say aye.
COUNCILMEMBERS NEIGHBOR, JENKINS, KEMMLING, VAUGHT, MEYER, SANDIFER, KEMMLING: Aye.
MAYOR DISTLER: Opposed nay.
COUNCILMEMBER PFLUMM: Nay.
COUNCILMEMBER MEYER: Motion passes. We are adjourned.
[Therefore, the motion was made by Councilmember Sandifer and seconded by Councilmember Jenkins to adjourn. The motion passes 7-1, with Councilmember Pflumm voting nay.]
I certify that the foregoing is a correct transcript from the electronic sound recording of the proceedings in the above-entitled matter.
/das May 20, 2016
Deborah A. Sweeney, Recording Secretary
Stephen Powell, City Clerk