2021-22-Adopted Budget

TABLE OF CONTENTS

TABLE OF CONTENTS (CONTINUED)

May 10, 2021

Honorable Mayor and Members of the City Council:

Through thoughtful and deliberate decision-making, I am pleased to submit to you this transmittal letter that details the Submitted Budget for the City’s fiscal year beginning July 1, 2021 and ending June 30, 2022 in accordance with Section 8.2 of the City Charter. The proposed budget totals $337,354,793 or an increase of $23,394,720 (approximately 7.4%), due to increases in salaries and benefits, retiree health insurance, capital improvement projects, and operating expenditures.

The COVID-19 pandemic created an economic crisis unlike any other in recent memory. While this pandemic challenged our finances, we rose to meet the financial challenges presented by this global health pandemic and avoided drawing on the $25 million interfund loan from the City’s pooled cash and investments approved by City Council, or the $1.5 million COVID contingency fund included in last year’s adopted budget. We displayed this strong fiscal prudence without needing the employee layoffs and furloughs that were all too common for both public and private sector employers. In so doing, we ensured City staff were able to continue delivering the services that our residents and business owners depend on. Our employees were on the front line of battling this deadly virus, and their service to our community cannot be overstated.

Tracking the Economic Recovery

From our jobs to our homes to how we shop, COVID-19 has disrupted nearly every aspect of life. As a result, the economy continues to evolve as we grapple with life during the pandemic. While there are reasons to be optimistic, enough uncertainty remains to urge a cautious approach to the development of the Submitted Budget.

As I have stated throughout the past year, economic recovery is dependent on two factors: the timing of vaccine distribution versus future outbreaks and consumer confidence. In one sense, there are reasons to be positive. The Conference Board’s consumer confidence index jumped 19.3 points to a reading of 109.7 for March 2021, the highest level since the onset of the pandemic in March 2020. The increase was the largest since April 2003. Fueled by this increased consumer confidence and supplemented by the federal government’s $1.9 trillion pandemic relief package, Federal Reserve Chairman Jerome Powell has indicated that he feels the economy and job creation are about to start growing “much more quickly.”

Economists predict the economy will this year experience its best performance in nearly four decades. Surveys show more consumers intended to buy homes, cars, and household appliances over the next six months.

There is also reason for optimism regarding the timing of vaccine distribution. While case rates have risen slightly as of late in Eastern Jackson County, they have stayed far below the spikes seen in other places of the country. Restrictions on non-essential businesses are being rolled back as more Americans get vaccinated against COVID-19. Missouri ranks 50th among states where coronavirus is spreading the fastest on a perperson basis. To date, 34.3% of Missouri residents have received at least one dose of the vaccine.

Conversely, there are plenty of reasons for continued pessimism. While consumer confidence has soared, it remains well below its lofty reading of 132.6 in February 2020. Moreover, while employment rates have rebounded to nearly pre-COVID-19 levels for high-wage workers, they remain significantly lower for low-wage workers. In the United States, employment rates for workers making more than $60,000 per year is only down 1.6% from a year ago, while employment rates for those making less than $27,000 is still 28% less than a year ago. Several key economic indicators within Jackson County also remain stubbornly low. Between January 2020 and January 2021 employment rates decreased by 15.3%, total spending by all consumers decreased by 18.7%, total small business revenue decreased by 39.4%, and the number of small businesses open decreased by 26.8%.

Given this economic fluctuation, this budget has been prepared with the following priorities:

Address City Council strategic priorities as outlined in Independence for All

Make strategic use of one-time revenues to further navigate economic uncertainties

Independence for All

The same proven strategic plan has served our organization since 2017: Independence for All. With its guidance, I have recommended a plan in each of the last four submitted budgets that sought to implement many of the strategies behind the four goals identified by the City Council:

• Customer-Focused – Improve customer service and communication.

• Financial Sustainability – Ensure City finances are stable and sustainable.

• Growth – Increase the economic prosperity of the community.

• Quality – Achieve livability, choice, access, health and safety through a quality-built environment.

The results of our thoughtful planning and superior delivery of City services are impressive. I can enthusiastically report that the strategies behind Independence for All are working, as we have now completed nearly all of the 74 identified strategies outlined in Independence for All

In August 2020, the City Council met to launch the new, fiveyear strategic planning process and outline their priorities for the next year. This was followed by a citywide survey for residents to provide feedback on the City Council goals, objectives, and priorities. Having received this feedback, the City Council adopted the 2021 Strategic Plan for the City of Independence in March. The heart of the plan continues to be captured

in four goals: Customer-Focused, Financially Sustainable, Economy, and Quality, with a focus on five priorities:

Reduce Crime and Disorder

Communicate More Effectively Internally and Externally

Enhance Public Health

Stabalize and Revitalize Neighborhoods

Reduce Blight

Independence for All focuses on interdepartmental collaboration, access, and equity in all its components and will continue to be evaluated quarterly to measure its success and ensure it represents the priorities of both the City Council and residents.

General Fund Overview

Total revenues for the General Fund in the Fiscal Year 2021-22 Budget are $78,362,743 (including one-time American Recovery Plan funding). Revenue growth is primarily attributable to an estimated 1.5% increase over current fiscal year projected sales taxes revenues. Despite the loss of several major retailers in the last year, this increase is driven by to the Use Tax waterfall provision. A total of $448,000 in Use Tax revenues is expected to waterfall to the General Fund in the Fiscal Year 2021-22 Budget.

1.5% increase in sales tax revenue

General Fund Revenues in the Submitted Budget also continue to be plagued by the same revenue erosion issues that I have highlighted in recent years, including continued forecasted losses in the Cable Franchise Fee (-3%), Telephone Franchise Fee (-22%), and Fines and Court Costs (-2%).

Total expenditures for the General Fund are $78,362,743, or an increase of $3,925,730 or 5.3% over the 2020-21 Adopted Budget Expenditure growth is the result of continued increases in salary and benefit costs, which are budgeted to grow 10.5% this year. Major contributing factors include budgeted increases for employee health insurance (4%), LAGERS (15%), Workers Compensation (30%), retiree health insurance (104%), and Fire Department minimum staffing (34%). LAGERS rates increased 1%, the overall LAGERS increase is due to being budgeted separately for all qualifying pays instead of being combined with salaries. This budget also includes 2% across-the-board wage increase for all nonrepresented employees as well as appropriate funding to meet contractually obligated wage and benefit increases for represented employees. In addition, all previously frozen vacant positions are fully funded in this budget.

To balance this budget as required by the Missouri State Constitution, a total of $4,172,000 in one-time revenues from the federal American Recovery Plan are contemplated for use in the General Fund. Additional ARP funds have been included in the budget as highlighted in the appendix.

Should the City Council ultimately decide to redirect these revenues for another use, corresponding reductions in expenditures will be necessary. To be direct, this budget is making use of one-time revenues to bridge a continued structural imbalance in the General Fund and to accurately budget for the Stay Well fund, the newly re-established Health Department, and continued operation of the intra- and inter-city transit system. Without further strategic reductions in operating expenses or an infusion of new revenues in the next 12 18 months, we will be confronted with a financial problem of similar-or greater-magnitude next fiscal year. To be clear, our options can be summarized as such:

• Make strategic changes to legacy expenditures that are growing at unsustainable rates, such as health benefits, vested leave payouts, and other benefit programs.

• Attract and retain industry that meets market demand and provides employment opportunities for Independence residents.

• Pursue other revenue growth opportunities through ballot initiatives.

• Evaluate citizen demand for services and strategically address service-level deployment models to match citizen/service level demand, emerging technologies, regional capacity, and industry best practices.

• Make across-the-board reductions to an already-meager workforce and further reduce our ability to meet citizen demand for basic service delivery in high-priority areas.

The American Recovery Plan provides us with an additional year to assess our financial position and align our resources to meet our citizen’s expectations for basic service delivery, but we simply do not have the one-time resources beyond this year to sustain such a practice. We must work in earnest over the next year to address these ongoing structural deficiencies.

City Council Resolution 17-729 adopts a number of financial policies for the City, including setting minimum Unrestricted Fund Balances. This policy states that the City will endeavor to maintain a minimum Unrestricted and Unassigned Fund Balance in the General Fund equal to 16% of annual operating revenues.

The Unrestricted Fund Balance for the General Fund is increasing in the Proposed Budget. The Fiscal Year 2020-21 Adopted Budget showed fund balance at $5,293,903 (7.11%), while the estimated fund balance for Fiscal Year 2020-21 is $5,812,237 (8.68%). For Fiscal Year 2021-22, I am projecting the Unrestricted Fund Balance will remain at $5,812,237 (8.68%). As reflected in the chart below, I must caution the City Council that our five-year financial forecast indicates the unrestricted fund balance will decrease to 2.44% in Fiscal Year 2022-23 and will fall below zero in Fiscal Year 2023-24.

Over the past five years, we have worked diligently to reduce expenditures and tackle structural budget issues that have plagued our City finances for years. More than ever, it is imperative that all parties collaborate to address our expenditures and grow revenues if we are to adapt to this new normal and sustain the progress we have collectively made to date.

Due to this budget constriction and the lingering economic uncertainty presented by the COVID-19 pandemic, this budget does not recommend funding for many new programs or initiatives; instead, many

of the items that align with the strategic priorities of Independence for All are funded through the American Recovery Plan.

General Fund changes of note include:

• $295,000 for streetlight consumption costs.

• $45,000 for 457 plan advisory costs.

• $20,063 for the addition of one part-time Detention Officer.

• Convert 6.0 Police Officer positions to Cadets to begin new recruitment program

• Full-year funding for Vacant Building Registry Program.

• Full-year funding for Neighborhood Services Manager to build proactive code enforcement capacity.

• $100,000 for Mayor and City Council At-Large elections.

• Increase of $610,000 for Retiree Health Insurance.

• Continued consolidation of services to drive efficiency all mowing and grounds maintenance will transition to Parks and Recreation in the upcoming fiscal year.

Health and Animal Services Fund

Following the reorganization and restructuring of the Independence Health Department in 2018, the City Council directed City staff in late 2020 to pursue recognition from the State of Missouri as a Local Public Health Agency (LPHA) to better serve the needs of the community in response to the COVID-19 pandemic. Recognition was received from the State in early 2021, and this budget provides the funding necessary to resume public health responsibilities at a baseline level.

Total expenditures for the Health and Animal Services Department are $2,767,298 and includes $346,104 in the General Fund, $1,316,928 in the Property Tax Levy Fund, $728,545 in the Animal Shelter Use Tax Fund, and $375,721 in Health Services Grants, with a revenue supplement of $150,000 from the American Rescue Plan (ARP). This budget supports 32.75 total full-time employees, 5.0 are grant funded.

Use Tax Fund Overview

Estimated revenues in the Fiscal Year 2021-22 Submitted Budget from the Use Tax are $4,802,750. In accordance with the voter-approved ballot language, $762,750 is budgeted for animal shelter operations, while $3,032,000 is budgeted to fund up to 30 sworn police personnel. Having satisfied these requirements, this leaves a total of $1,008,000 to waterfall to the appropriate originating sales tax fund. The breakdown of this allocation is as follows:

• General Fund: $448,000

• Street Improvement Sales Tax: $224,000

• Park Improvement Sales Tax: $112,000

• Storm Water Sales Tax: $112,000

• Police Public Safety Sales Tax: $56,000

• Fire Public Safety Sales Tax: $56,000

Sales Tax Funds Overview

In addition to the Use Tax, the City of Independence administers six additional voter-approved sales taxes. While these funds were already experiencing increasing costs against diminishing revenues, the COVID19 pandemic has further weakened their financial position. After an anticipated decline in revenue of 21% last fiscal year, five of these six funds are now estimated for a see positive revenue growth in Fiscal Year 2021-22, with a 2.0% increase over the estimated FY 2020-21 revenue. Only the Transient Guest Tax is budgeted to experience a revenue decrease, which is budgeted at 3.8% less than Fiscal Year 2020-21.

Enterprise Funds Overview

The submitted budget does not forecast significant revenue growth in the enterprise funds because of the COVID-19 pandemic. As economic markers remain stubbornly inconsistent, this may portend a continued issue for residential customers who may struggle to make their monthly payments. Similarly, any combination of lingering economic shutdowns or business closures along with any increases in infection rates may signal public health restrictions that could adversely impact revenues from commercial and industrial accounts. Against that backdrop, the budgets for the enterprise funds have been developed with minimal revenue growth while accurately budgeting for planned expenditures, including capital programming and system maintenance. As a result, the proposed budget reflects unrestricted fund balance will be drawn down in the Power & Light Fund by $8,225,219, by $3,778,368 in the Water Fund, and the Sanitary Sewer Fund by $400,275. Staff will need to manage financial performance throughout the year to determine if planned capital investments are supported by a reversal in the current negative demand and revenue trends or require reductions or elimination altogether of

investments to match revenues and avoid further erosion of each utilities’ fund balance. These funds will also require monitoring for compliance with their respective Resiliency and Cash Balance Policies.

• Full-year funding for Public Education and Outreach Coordinator

• $1,467,000 additional funding for Retiree Health Insurance.

• Increase of 3.0 FTE for temporary Meter Readers

• $136,000 for meter reading handheld computers

• Initiating multi-year planned drawdown of fund balance in the Water Fund for Water Main Replacement Program ($1,745,000).

• $450,000 in Sewer Fund for Little Blue Valley Sewer District rate increase.

• $184,000 for 3.0 FTE for a Sanitary Sewer Evaluation program.

Conclusion

The turmoil brought about by the COVID-19 worldwide pandemic is devastating for many reasons, from the loss of life to the uncertain economic impact. Despite this catastrophic moment in time, I am confident that the submitted budget will not only provide the financial resiliency needed to weather the current storm but will also allow the City of Independence to provide the services that are most essential to our citizenry.

It is also important to take a moment during these challenging times to thank all our City staff who continue to respond to this event with the utmost professionalism and commitment to the services we provide to our citizens. It is because of them and the resiliency of this community, that there is a light at the end of this journey.

I want to thank you, the City Council, and the City departments for the assistance provided in preparing this budget. The options presented as a part of this budget are not easy choices; my staff and I are ready to address any questions regarding the information presented. Together we will ensure the long-term financial sustainability of the City while providing the services that truly make us an Independence for All

Respectfully,

Zachary C. Walker City Manager

Form of Government

City Council

Eileen N. Weir

Karen M. DeLuccie At-Large

Mike Huff At-Large

John Perkins District 1

Brice Stewart District 2

Michael Steinmeyer District 3

Daniel Hobart District 4

Mayor

Guide to the FY 2021-22 Budget Document

The purpose of this budget document is to provide a comprehensive view of the operating budget. The budget is a tool for management to plan services, but it is also a communication to the public on the overall financial and policy direction of the city. Use this guide to navigate the document.

Budget Transmittal letter

The City Manager’s Budget Message provides the framework for how the budget was developed, including contextual information on the city’s finances, economic trends, and changes to the budget.

Introduction

This section provides general information about the City:

• Names and photos of Mayor and City Council

• City of Independence overview and history

• Independence for All 5-Year Strategic Plan

Fund Summaries

This section of the book gives the highest-level overview of the fund structure of the city.

• The breakdown of expenditure types across all funds

• The breakdown of revenue types across all funds

• Fund summaries for each fund, which show how the expenditures relate to the revenues

Department Summaries

This section contains summary and detail information about each city department:

• Organizational chart shows the director and divisions of each department

• Department summary page highlights the mission of the department, the budgetary funds that make up the budget, a summary of expenditures, and total budgets and FTE counts

• The department is then broken down further into divisions (for instance, the Patrol Division of the Police department). The top half of the page will show summary information about the types of expenditures in that division, as well as the funding source and FTE counts.

Capital Improvements Program

This section contains the six-year CIP plan that was approved by the Planning Commission in March 21, 2021, including:

• Summary of Projects

• Funding Sources

• Project details

Appendix

The appendix includes miscellaneous information that may help further understanding of the budget, including:

• Budget Survey Summary

• Changes made from the proposed budget to the adopted budget

• Financial and budgetary policies/procedures of the city

• Glossary of budget and finance terms

Budget Development Process

Development of the annual City budget is a year-long process that culminates in June, with the formal adoption of the budget.

October - December: Planning

1. Financedevelopsthe2021budgetmanual.

2. Financemeetstoresolveissuesandpreparebudgetoutlook.

January - February: Operating Budget Kickoff & CIP Presentation

1. Financemeetswithdepartmentstokickoffbudgetprocess.

2.UpdatedFiveYearForecastpresentedtoCityCouncil.

3. Financepreparesthebasebudget,chargebacks,andpreliminarypersonnelbudgets.

4.Revenueprojectionsandestimatedactualexpensesforprioryearareprepared.

5.CapitalImprovementProgrambudgetpresentedbyEconomicDevelopmenttothePlanning Commission.

March: Department Preparation

1.CityCounciladoptsannualStrategicPlanupdate.

2.InconjunctionwiththeFinance,departmentsanddivisionspreparebudgetproposals.

3.DepartmentsDirectorspresentbudgetsandpackagerequeststotheCityManager.

4.Finaladjustmentsinrevenueandexpenditureestimatesarecomplete.

5.CityManagerreviewsrecommendedbudget,andgivespreliminaryapprovalonbudgetchangesto beincludedinproposedbudget.

6.FinancepreparesProposedbudgetdocument

April - May: Preliminary Review and Public Input

1.CityManagerproposedbudgetsubmittedtotheCityCouncil.

2.Onlinebudgetsurveyforpublicinput.

3.CapitalImprovementProgrammemowithrecommendationsissuedfromPlanningCommission.

4. CityCouncilmakespolicydecisionsandbudgetaryamendmentstotheProposedbudget.

June - July: Final Review and Adoption

1. Firstreadingofappropriationordinancesheldadoptingbudget.

2. CityCouncilproposes/amendsbudgetperpolicydecisions.

3. Secondreadingofappropriationordinancesheldadoptingbudget.

4. Financebeginsproductionoffinalbudgetdocument

August - September: Property Tax Levy and Final Budget Book

1. AssessedvaluationreceivedfromJacksonandClayCountiestosetPropertyTaxLevyRates.

2. PublichearingtosetPropertyTaxLevyheld.

3. Secondreadingofappropriationordinancesheldadoptingtheannualtaxlevy

4. TaxlevyratessubmittedtoJacksonandClayCounties.

5.Adoptedbudgetbookprintedandpublishedonline.

6.FirstquarterbudgetamendmentpreparedforCityCouncilapproval.

FY 2021-22 Detailed Budget Calendar

adoption of the FY 2021-22 Operating Budget Appropriation Ordinance (Must be before June 27 or the proposed budget as amended will become effective)

About the City of Independence

Independence the fifth largest city in Missouri, located with Jackson County It is the largest suburb of the Kansas City metro on the Missouri side. Located ten miles east of Kansas City, Missouri in the geographical center of the United States. Independence has a Mayor / City Council / City Manager form of government. The Independence City Council is made up of six members, four are elected to represent one of the city districts, the other two are elected by the city as a whole. The City Mayor also sits on the City Council and serves as the "Head of Government" for the city. Members serve a four-year term, beginning on January 1 following the election.

History

Independence was originally inhabited by the Missouri and Osage Indians and became part of the United States with the Louisiana Purchase in 1803. The city was founded on March 29, 1827. It was the farthest point westward on the Missouri river where steamboats or cargo vessels could travel. The city quickly became the hub of the California Trail, Santa Fe Trail, and the Oregon Trail. Independence was soon known as the Queen of the Trails, due to is unique location where all three trails converged. It wasn’t until the 19th century that Independence was defined by The United States Congress as the “Start of the Oregon Trail.” In 1826, Independence was named the county seat of Jackson County. During the years of 1862 and 1864 the First and Second battles of Independence were fought.

President Harry S. Truman grew up in Independence. In 1945, Harry S Truman took office as the 33rd and spent two terms as President of The United States, after which he returned to Independence, where the Presidential Library was built in 1957. For another two decades, he and his wife Bess remained Independence residents. The Harry S. Truman National Historic Site and the Harry S. Truman Presidential Library and Museum are both located in Independence.

Community Profile

Independence is positioned strategically at the crossroads of I70 and I-470, where approximately 150,000 cars pass each day. The Kansas City metropolitan area has more lane miles of freeway per capita than any other metro area in the United

States. Two rail lines, three interstates and five state highways serve Independence. The city is located just 25 minutes from Kansas City International Airport.

Independence has seven police stations, ten fire stations, and the city provides Water, Sanitary Sewer, and Power and Light utilities, with three power stations.

The development of the Little Blue Parkway, a new thoroughfare connecting the eastern portion of the City from I-70 to 24 Highway will open 38 miles of land for development. It is estimated that by the year 2020, the Little Blue Valley will be home to an additional 20,000 people and 5,000 new office, industrial and retail jobs.

In the heart of the city, Historic Independence Square is undergoing a renaissance with substantial increase in private investment and a planned restoration of the Historic Jackson County Courthouse. The traditional town square offers unique shops, restaurants, loft-style apartments and a newly renovated cinema and bowling alley.

Creating the educated workforce of the future is a priority for the Independence Community. The city is supported by four award-winning public-school districts: Independence, Blue Springs, Fort Osage, and Raytown school districts. Independence is home to four colleges to support the higher education needs of our citizens, including Metropolitan Community College, Graceland University, Park University, and National American University.

Independence has a history of a pro-business attitude. Its low-cost environment is a natural incentive to companies looking to expand or relocate. Independence has the third lowest property tax rate in the Kansas City Metropolitan Area. Additionally, the City does not tax on personal property, including machinery and equipment. The city tax structure coupled with the many affordable housing options makes it the best value in the Metro for working and living.

Quick Facts about Independence

Population: 116,673

Square Miles: 78.25

Number of Households: 47,329

Average Household Size: 2.4

Median Household Income: $52,325

Median Age: 36.8

Median value of owner-occupied units: $122,104

School Enrollment: 24,408

Miles of highways: 46.38

Number of new business licenses in 2020: 822

Sister City: Higashimurayama, Tokyo, Japan

Source: City of Independence and Censusreporter.org

Statistical Information

INCOME

Per capita personal income, Missouri Adjusted Gross Income per return data for the city, County and State are presented in the following table:

POPULATION

The population trends for the city, county, and state are shown in the table below.

Source for Income and population data: City of Independence, Jackson County, State of Missouri

MAJOR EMPLOYERS

The major employers in the city by number of employees (full and part-time).

Source: Independence Council for Economic Development and Mid-America Regional Council.

LARGEST TAXPAYERS

The table below shows the city’s ten largest taxpayers for 2019, the total assessed valuation for the city was $1,613,879,510.

Source: Jackson County Collection Department

Independence for All Strategic Plan

2017 - 2021 Strategic Plan Adoption

The 2017 – 2021 Strategic Plan for the City of Independence was adopted by the City Council on February 6, 2017. The process began in November 2016 with a City Council planning session. The Council set a community vision and identified goals and objectives to support that vision. The heart of the plan is captured in four goals: customer-focused, financially sustainable, growth and quality. In December, staff completed a planning exercise to build upon the Council's work. Staff identified specific strategies to achieve the Council's goals and measure to track success over time. The plan includes a mission statement that explains the role of the city organization in achieving the vision. It also includes a statement of values to communicate to citizens how staff will live out the mission in the conduct of business.

The intent is for the Council to renew its planning session on an annual basis to monitor progress and direct adjustments as needed. Staff will also work with the Council on a communications strategy to share the plan and engage support from internal and external audiences. The plan helps direct limited resources to make the maximum impact on community needs. The city is committed to a unified vision that stretches from the Mayor and City Council to front-line employees and includes citizens and community partners.

The Council established goals and objectives that were informed by results from prior citizen surveys and input from civic leaders. The plan includes specific strategies that outline how staff will achieve each of the Council’s objectives. Performance measures set the foundation for a continuous cycle of monitoring progress and adjusting as needed to ensure success.

2021 Strategic Plan Update

In 2020, the Independence City Council met to review the Independence for All Strategic Plan and made updates to reflect community priorities. Between November 2, 2020, to January 15, 2021, community members had the opportunity to watch a video about the strategic plan updates and to complete a survey asking two key questions:

•Is this the right plan to improve Independence for All?

•What are your top three community priorities for 2020-2021?

82% of survey participants agreed or strongly agreed the City Council’s strategic plan is the right plan to improve Independence for All.

On January 21, 2021, the Independence City Council met again to review community input and to prioritize goals for 2021. The 2021 Strategic Plan for the City of Independence is the result of several months of focus and discussion updating Independence for All, to plan and guide the City's course for the future.

The heart of the plan is captured in four goals: Customer-Focused, Financially Sustainable, Economy, and Quality with five priorities:

Adoption of the Strategic Plan is a continuous planning process. Staff can begin implementing some of the proposed strategies immediately, but others are dependent on decisions that must be evaluated in the upcoming budget process and development of business plans. The intent is for the Council to review and update the Strategic Plan on an annual basis to monitor progress and direct adjustments as needed.

Vision

Our quality neighborhoods, 21st century jobs, growing economy, safe, family-friendly community, and cultural diversity makes Independence, Missouri a nationally recognized city with a unique history and sense of place.

Mission

Transforming our community through engagement, innovation, and sustainable services.

Goals

Goal: Customer-Focused Improve customer service and communication

Goal: Financially Sustainable Ensure City finances are stable and sustainable

Goal: Growth Increase economic prosperity of community

Goal: Quality Achieve livability, choice, access, health, and safety through a quality-built environment

2021 Strategic Plan Action Plan

The 2021 action plan was approved by the City Council on September 7, 2021. The action plan is updated annually after the Strategic Plan and serves as the guidance for city departments to implement the Strategic Goals. The action plan includes a designation of the primary department(s) responsible for each item and performance measures.

Independence for All 2021 Action Plan

GOAL: CUSTOMER FOCUSED Improve customer service and communication

OBJECTIVES STRATEGIES

Improve customer service

Increase use of IndepNow to better track and respond to citizen calls for service.

Implement customer service training of all front-line employees to ensure the equitable treatment of all customers.

Continue to use social media to engage with customers/citizens.

Streamline reporting to make efficient use of staff time to deliver clear, concise information to the City Council and public.

Develop and implement a communication strategy to share the strategic plan with city employees and public.

PRIMARY DEPARTMENT(S)

Communications

Communications, Human Resources

Communications

Communications

Communications

Communicate more effectively internally and externally

Enhance the City's primary public information tools: Channel 7, website, CityScene newsletter, social media.

Expand collaborative use of Cityworks and enhance existing workflow processes to better support city departments.

GOAL: FINANCIALLY SUSTAINABLE

Ensure City finances are stable and sustainable

OBJECTIVES STRATEGIES

Control long-term costs

Optimize resources

Sustainable Funding

Long-range financial planning

Communications

Tech Services

PRIMARY DEPARTMENT(S)

Continue to advance the employee wellness program to contain health insurance and workers compensation costs. Human Resources

Pursue plan design changes to Stay Well Employee Insurance Program to control long-term expenditures.

Conduct a market salary study and implement recommendations in the employee pay plan focused on recruitment and retention.

Negotiate fair, sustainable compensation and benefit agreements with labor unions.

Utilize technology to make city operations more efficient.

Improve the management of cyber security risks while protecting sensitive information.

Seek voter approval of general obligation bonds for infrastructure and facilities projects.

Seek voter approval of City Charter changes to reflect updated best practices.

Expand the scope of the Shared Services Initiative to leverage relationships with participating jurisdictions and capture economies of scale.

Obtain permanent, viable funding for the Health Department.

Identify and capture funding for Cemetery maintenance and support.

Pursue the Museum and Tourism Related Activities Tax to support tourism needs.

Human Resources

Human Resources

City Manager, Human Resources

Tech Services

Tech Services

Finance & Administration

City Manager

City Manager

City Manager, Health & Animal Services

City Manager, Parks, Recreation & Tourism

City Manager, Parks, Recreation, & Tourism

Research additional long-term revenue streams and funding sources to support delivery of basic services. Finance & Administration

Develop cost of service studies for utilities and ensure appropriate customer rates.

City Manager, all Utilities

Begin to establish life-cycle costing analyzing the total cost of ownership for fleet, facility, and infrastructure investments. Finance & Administration, Municipal Services

Complete implementation of financial and human resources management software.

Finance & Administration, Human Resources

Independence for All 2021 Action Plan

GOAL: QUALITY

OBJECTIVES STRATEGIES

Conduct proactive code enforcement sweeps in neighborhoods along key commercial corridors and entryways.

Research code enforcement best practices and develop a rapid response plan to quickly address code violations.

Work with community partners to acquire blighted properties that could be redeveloped for improved economic activity.

Update the Trails Museum Master Plan to focus emphasis on museum exhibits and visitor experience.

PRIMARY DEPARTMENT(S)

Community Development

Community Development

Community Development

Parks, Recreation & Tourism

Improve appearance of major commercial corridors and historic sites

Implement recommendations of the Downtown Redevelopment Plan as guided by the Independence on a Roll working group.

Develop and implement strategies to reduce chronic issues of litter and debris and illegal dumping within the community.

Explore land acquisition along Truman Road to enable beautification of major entryways into the city.

Target street and sidewalk maintenance along major corridors and around historic sites.

Evaluate space and maintenance needs for city buildings and determine a long-term strategy for needed improvements.

Municipal Services, Community Development

Municipal Services, Communications

Municipal Services, Community Development

Municipal Services, Community Development

Municipal Services

Improve public infrastructure and facilities condition

Enhance Public Health

Ensure the Complete Streets Policy is implemented during all new construction and renovation.

Develop new Parks and Recreation Master Plan.

Expand water main replacement program.

Identify strategies to improve and expand resources for mental health needs, including expansion of behavioral crisis and intervention centers.

Create a Community Paramedicine Program to support medical outreach, including mental, homeless and substance abuse.

Continue Trap, Neuter, Release (TNR) program to reduce feral cat population.

Maintain status as no-kill Animal Shelter.

Increase public education regarding crimes of opportunity.

Reduce crime and disorder

Increase perception of safety

Implement a business crime prevention outreach program.

Proactively address crime trends and patterns with targeted policing efforts.

Improve Fire Department deployment to address increase in responses and response time.

Amend the Unified Development Ordinance (UDO) to include Crime Prevention Through Environmental Design (CPTED ) regulations for certain uses.

Increase enforcement of solicitation and loitering ordinances.

Improve street lighting and sidewalks in priority locations.

Expand the Neighborhood Watch Program.

Balance proactive policing efforts with community engagement within allocated resources.

Continue to support and enhance Volunteers in Police Services (VIPS) program.

Implement and support development of Cadets program.

Increase park patrol to enhance perception of park safety.

Improve community outreach and good news stories.

Develop a homeless strategy to reduce unhoused population to effective zero and connect individuals with necessary resources.

Develop cooperative agreements with neighboring municipalities to address issues related to homelessness along shared jurisdictional boundaries.

Municipal Services

Parks, Recreation & Tourism

Water

Police, Fire, Health & Animal Services

Fire, Health & Animal Services

Health & Animal Services

Health & Animal Services

Police

Police

Police

Fire

Community Development

Police

Municipal Services, Power & Light

Police

Police

Police

Police

Police, Parks, Recreation & Tourism

Police, Fire, Communications

Community Development, Police, Health & Animal Services

Police, Health & Animal Services

Stabilize and revitalize neighborhoods

Target incentive programs (including tax abatement), CDBG and HOME resources in neighborhoods, activity centers and along corridors to support revitalization and stabilization.

Implement the vacant building registry program.

Incorporate best practices code changes into the UDO to encourage infill housing units in neighborhoods, around transit and activity centers.

Rehab blighted housing for low-income home ownership.

Collaborate with community partners on various methods to stabilize neighborhoods.

Community Development

Community Development

Community Development

Community Development

Community Development

Independence for All 2021 Action Plan

GOAL: Growth Increase economic prosperity of community

OBJECTIVES STRATEGIES

Support and empower the Independence Economic Development Council to recruit/retain businesses, develop entrepreneurs, and facilitate workforce training with community partners.

Invest in and publicize workforce development programs.

Continue partnerships and coordination with all school districts and social service agencies to address community needs.

Coordinate with RideKC partners to ensure that public transportation connects the Independence workforce to quality jobs.

Support development of an industrial/office business park. Evaluate the development of a certified site, with all infrastructure in place.

Develop utilities master plans for areas targeted for development in the Comprehensive Plan.

Support redevelopment of key corridors through land use planning/zoning and incentives.

Adopt International Code Council (ICC) building and energy codes.

Update Business License Code.

Attract and retain visitors to the City's historic sites, amenities, and events.

Begin implementation of enhancements to City-owned historic sites.

Complete Master Housing Study and implement strategies to address various community housing needs.

Leverage and maximize the Historic District designation for the Square, and explore establishing additional historic districts to preserve historic appearance.

Research and implement strategies and goals in the Historic Preservation Master Plan to protect community historical resources.

PRIMARY DEPARTMENT(S)

City Manager, Community Development

Community Development

Community Development

Community Development

Community Development

Community Development, Utilities

Community Development

Community Development

Community Development

Parks, Recreation & Tourism

Parks, Recreation & Tourism

Community Development

City Manager

Community Development

Budget Overview

Economic Outlook and Condition

The following considerations were made in building the budget for FY 2021-22.

Nationwide Unemployment

• Non-farm payroll employment has recovered more than half (55%) of the jobs lost at the peak of the economic shutdown

• Recent months show the recovery stalling

Source – Economic Outlook for Local Officials, presented January 12, by MARC, KU, United Way of KC, MO Dept of Econ Dev and BLS data

Kanas City Metro Unemployment

• As of November 2020, KC’s unemployment rate is about 2 percentage points below the nation’s

• Progress has slowed considerably in recent months

• State of MO lost 346,000 jobs in March / April, has recovered 2/3 of those jobs

Source – Economic Outlook for Local Officials, presented January 12, by MARC, KU, United Way of KC, MO Dept of Econ Dev and BLS data

Federal Stimulus Bill

• Individuals: $600, with $600 for qualified dependents

• Moratorium on evictions until January 31st

• Federal unemployment $300 per month until March 14th

• Support for businesses – entertainment, agriculture, economic injury disaster loans

• Billions in rental, food, and childcare assistance

• Other aid: billions in transit, education, and vaccine distribution

Local Impact

• City of Independence estimated median income 2019 was $59,000 according to Independence Chamber of Commerce

• Data through end of October shows that jobs for those earning > $60,000 per year have mostly recovered (down -1.6%)

• Jobs for people earning $27,000-$60,000 down -3.9%

• Jobs for people earning < $27,000 down -17.2%

Missouri’s Economic Outlook

• COVID was and remains devastating to Missouri’s economy

• The recovery was fairly robust compared to other states, but we have a long way to go

• Missouri had some highlights with manufacturing and construction

• There are still concerns, especially in consumer spending and small business revenue

• Consumer spending is still down 10% in Missouri relative to the pre-covid level

• Small business revenue is down 30% in Missouri relative to the pre-covid level

Source – Economic Outlook for Local Officials, presented January 12, by MARC, KU, United Way of KC, MO Dept of Econ Dev and BLS data

General Fund – Five Year Forecast Update

• Top 3 revenue categories represent 62% of general fund revenue

• Sales tax susceptible to economic cycles

• Franchise fees

• Uncertain long-term outlook

• Energy efficiency (gas, electric)

• Technological change and customer trends (telephone and cable)

• Total General Fund budgeted revenues are $74.4M before any ARP supplements

Major Sources of General Fund Revenues

General Fund Revenue Summary

Property tax

• City has experienced solid assessed value (AV) growth in reappraisal years (odd-numbered years)

• Slight pullback in even-numbered years

• 2020 AV decrease primarily a result of BOE property tax appeals from 2019 reappraisal

• Model assumes slower pace of AV growth compared to 2019 reappraisal

• Revenue upside is limited by Hancock amendment, if more aggressive AV projection were to be assumed

Breakdown of Resident Property Bill

Where Your Property Taxes Go

City Health, $46

Jackson County, $136

City General, $103

Jackson County, $136

Board of Disabled Services, $14

City General, $103

School (average), $1,327

City Health, $46

Mental Health, $24

Metro Junior College, $48

Mid-Continent Library, $83

State Blind Pension, $7

School (average), $1,327

Sales tax

• FY21 budgeted sales tax number projected during COVID lockdown

• State DOR remits data to Finance with a two-month lag

• Monthly sales tax receipts have been resilient to date

• Updated projection to incorporate actual experience YTD

Sales tax (in $millions)

Based on 2018 Median Home Value of $117,576 and property tax bill of $1,788

Sales tax annual change (%)

Use tax – Waterfall Provision Impact on the General Fund

• On track to trigger the waterfall provision this fiscal year

• Forecast a total of $665,000 will waterfall in FY 2020-21, if the CPI remains relatively flat and the use tax receipts remain stable

• The General Fund share of this revenue is $295,963

• Other funds receiving revenue – Street Sales Tax, Park Sales Tax, Stormwater Sales Tax, Fire Sales Tax, Police Sales tax

• Offsets lost revenue from closure of Penny’s and Macy’s - tax has collected $3.51 million calendar year-to-date and is now yielding an average monthly collection of $319,073, estimate $3.83 million annually

• Assuming the CPI remains relatively flat, that the average salary and benefit costs of a police officer is $100,000 per year, and that no equipment purchases are authorized from this fund, then a total of $3,750,000 (not including CPI) would be needed to satisfy the ballot language requirements and trigger the waterfall provisions

• Currently on target to eclipse this provision this fiscal year, with total collections expected to reach $4.42 million. This would mean a total of $665,000 would “waterfall” to the other funds if these trends hold

• FY 2021-22 budget estimates $448,000 will be allocated to the General Fund based on the waterfall provision

PILOT Revenue in the General Fund

• Based on gross revenue

• Expected trend is slightly upward

Utility franchise fees

• Water: Historically, volatile revenue source, but very small component of total

• Gas: Performance dependent on weather

• Telephone: Projected structural decline as citizens cut cord

• Electricity: Performance dependent on weather; energy efficiency efforts

• Cable: Projected structural decline as citizens cut cord

Power & Light Water Service Sanitary Sewer

Franchise Fees (in $millions)

Franchise fees annual change (%)

Fines and Forfeitures and Charges for Services

• Both trending down

• Fines and forfeitures are trending $1.8M less than budget due to court closures and residual impacts of SB5

• Charges for services are trending $1M less than budget

• TIFF charges, transit revenues, code enforcement, school resource officers

Fines and Forfeitures (in $millions)

Charges for Services (in $millions)

General Fund Expenditures Summary

General Fund Assumptions

• Five-year model forecasts salary and benefit expenditures under current CBA for each represented group

• Includes:

• 2% cost increase for non-represented employees

• 1% increase for operating expenses, continued budget diligence

• Employee pays / benefits total including retiree health (1.9M budget) = 81% or $58M

• Other pays: automobile, clothing/uniform, employee / other allowance, other pay types, OT, personnel services charged to projects

General Fund Expenditures General Fund

• The General Fund has constraints on spending tied to the city charter, state law, and other criteria

• Fixed costs:

• Police & Fire include dept operations as indicated in charter, and salary/benefits/retiree health for all divisions.

• Other costs are trash & landfill fees = $162,000

• Flexible:

• Flexible is a misnomer – this includes city administrative operations, flexible only indicates it is not legally mandated by one of the other categories

• Administrative and operating costs for: Community Development, City Administration, Municipal Services

General Fund Budgetary Constraints

Budget Impacts and Considerations

• Forecasted revenue and expenses for FY 21 are trending below budget, being conservative with spending and long-term obligations

• Future Budget Impacts that will need to be monitored:

• Increasing Healthcare costs

• Transit program subsidies

• Union negotiations

• Projected year end unassigned fund balance is $5.8M

• The City’s reserve balance policy is 16% of annual revenues

• The City must continue to make additional adjustments over 5-year horizon to meet this goal

Enterprise Funds

Enterprise Funds Overview

• The three enterprise funds are Sanitary Sewer (formerly Water Pollution control), Water, and Power and Light (also referred to as IPL / Independence Power and Light)

• Enterprise funds support the operation these departments, separate from the General Fund

• Revenues are based primarily on utility rates.

• These funds are established to account for services financed and operated in a manner like private businesses.

• Total Budget (including capital):

o Sanitary Sewer, $38,671,597

o Water, $35,973,379

o Power and Light, $178,308,154

Debt & Leases, $19,297,056, 8%

Capital Budget, $16,413,956, 6%

Operating Budget, $217,242,118, 86%

Grant Funds

• These are only “known” or expected grants that were included in the budget.

• There may be other grants, particularly in Health and Safety, that the city is able to obtain, at which time a budget amendment will be done.

Use Tax Overview

• The use tax is explained previously in the General Fund revenues

• This shows the waterfall impact on special revenue funds setup for the use tax

• Budget estimated that the sales subject to use tax are $44,592,694

• Ballot language requires these two funds to be allocated first:

o Animal Shelter Use Tax Fund, $762,750

o Police Use Tax Fund, $3,032,000

• Remainder estimated to waterfall is $1,008,000

General Fund (002)

Fund Descriptions

is used to account for all financial resources necessary to carry out basic governmental activities of the city that are not accounted for in another fund. The General Fund supports essential city services, including police, fire, municipal services, and administration.

Special Revenue Funds

are used to account for specific revenues that are legally restricted to expenditures for specified purposes.

Street Improvements Sales Tax (011)

Park Improvements Sales Tax (012)

Voters approved a one-half of one cent sales tax for streets, bridges and safety improvements. Additional revenues from the Proposition "P" waterfall provision are accounted for here.

The Park Improvements Sales Tax Fund has been setup to account for the one-quarter cent sales tax identified for parks and recreation. Additional revenues from the Proposition "P" waterfall provision are accounted for here.

Storm Water Sales Tax (013) The Storm Water Sales Tax Fund has been set up to account for the one-quarter cent sales tax identified for storm water system improvements. Additional revenues from the Proposition "P" waterfall provision are accounted for here.

Police Public Safety Sales Tax (016)

Fire Public Safety Sales Tax (017)

The voters approved a Capital Improvements for Police Sales Tax in April 2016 at the rate of one-eighth cent of the receipts from the sale at retail of all tangible personal property or taxable services at retail for a period of January 2017 through December 31, 2028. The Police (Capital) Sales Tax Fund has been set-up to account for the one-eighth cent capital improvements sales tax identified for police equipment. Additional revenues from the Proposition "P" waterfall provision are accounted for here.

The voters approved a Capital Improvements for Police Sales Tax in April 2016 at the rate of one-eighth cent of the receipts from the sale at retail of all tangible personal property or taxable services at retail for a period of January 2017 through December 31, 2028. The Fire Public Safety Sales Tax Fund has been set-up to account for the one-eighth cent capital improvements sales tax identified for fire equipment. Additional revenues from the Proposition "P" waterfall provision are accounted for here.

Animal Shelter Use Tax (010)

Voters approved Proposition "P", a use tax on goods delivered to Independence addresses in 2019. The rate of the use is the same rate as the total City's retail sales. The first $1.5 million (adjusted for inflation annually) will be split equally between a fund for Animal Services and a fund for hiring up to 30 new police officers. The next $1.5 million of use taxes in the fiscal year are applied 100% towards hiring of police officers ($3 million total before inflation increase). Use taxes collected over the amounts identified in the special use taxes will then be receipted into any fund that has a sales tax prorated on its share of sales taxes.

Police Use Tax (018)

Voters approved Proposition "P", a use tax on goods delivered to Independence addresses in 2019. The rate of the use is the same rate as the total City's retail sales. The first $1.5 million (adjusted for inflation annually) will be split equally between a fund for Animal Services and a fund for hiring up to 30 new police officers. The next $1.5 million of use taxes in the fiscal year are applied 100% towards hiring of police officers ($3 million total before inflation increase). Use taxes collected over the amounts identified in the special use taxes will then be receipted into any fund that has a sales tax prorated on its share of sales taxes.

Health & Animal Levy (005)

Parks Health & Recreation Levy (007)

Funded by the Health & Recreation tax levy collected against real estate within the city of Independence. The purpose of the levy is for Health and Parks and Recreation purposes. This levy is split between the Health & Animal Levy Special Fund and a Parks Health & Recreation Levy Fund.

Funded by the Health & Recreation tax levy collected against real estate within the city of Independence. The purpose of the levy is for Health and Parks and Recreation purposes. This levy is split between the Health & Animal Levy Special Fund and a Parks Health & Recreation Levy Fund.

The Tourism Sales Tax Fund is supported by both admission fees to the National Frontier Trails Museum and a 6.5% Transient Guest Tax. The 6.5% Transient Guest Tax is to be paid on the gross daily rent due from or paid by transient guests of all hotels and motels, bed and breakfast inns and campgrounds. Com. Dev. Block Grant(008) accounts for the federally funded Community Development Block Grant Act program.

Tourism (004)

HOME (009) accounts for the federally funded home program.

Grants (015) accounts for other grants, including Police, Fire, and Health department grants.

Enterprise / Utility Funds

are used to account for operations that are financed and operated similar to a private business where the intent is that the cost of providing services to the public is financed primarily through user charges.

Power & Light (020) operations of the city's power and light utilities. Water (040) operations of the city's potable water utility. Sanitary Sewer (030) operations of the city's sanitary sewer utility.

Internal Service Funds

are used to account for operations internal to the city where the intent is that the cost of providing services to the city department is financed primarily through department user charges.

Central Garage (090) Vehicle maintenance and operations of citywide fleet, including gas and oil charges. Staywell Health Care (091) Activities related to the city's' self insured health care plan.

Workers' Compensation (092) Management of workers’ compensation insurance and claims. Risk Management (093) Management of city liability insurance and claims. Enterprise Resource Planning (ERP) (094) Management of technology asset, MUNIS, and costs associated with providing an ERP citywide.

All funds in the operating budget book are appropriated by City Council via budget adoption.

Department Fund Relationship

*Internal service funds are shown with the department that oversees each fund.

Schedule 1

All Funds by Expense Category

Special Revenue Funds

Schedule 1

All Funds by Expense Category

Enterprise Funds

Notes:

(1) In the All Funds Summary, the totals for Internal Service Funds expense have already been included in the operating expenses for GF, Special Revenues, and Enterprise Funds as they are charged out during course of the year for internal services provided to other departments/funds.

(2) The Internal Service Funds Summary is shown for informational purposes, the total amount is in the operating expenses for each fund. The All Funds Summary is the total of the General Fund, Special Revenue Funds, and Enterprise Funds.

Internal Service Funds(2)

Schedule 2

Expenditures by Department

All Funds

Fund

Schedule 2

Expenditures by Department

Special Revenue Funds

Enterprise Funds

Schedule 3

Expenditures by Fund and Fund Type

All Funds

Governmental Funds

Enterprise Funds

Schedule 4

Revenue by Fund and Fund Type

All Funds

Governmental Funds Enterprise Funds

Schedule 5

All Funds by Revenue Category Group

Schedule 5

All Funds by Revenue Category Group

Special Revenue Funds

Enterprise Funds

Notes:

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Street Improvements Sales Tax Fund (011) Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Park Improvements Sales Tax Fund (012) Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Stormwater Sales Tax Fund (013) Comparison of Revenues, Expenditures and Change in Fund Balance

Schedule 7

Governmental Funds

Police Public Safety Sales Tax Fund (016)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Fire Protection Sales Tax Fund (017) Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7 Governmental Funds

Animal Shelter Use Tax Fund (010)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Police Use Tax Fund (018)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7 Governmental Funds

Health & Animal Levy Fund (005)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

(2) FY 2021-22 budget includes the consolidation of the Health Inspection division (previously in Community Development.)

Schedule 7

Governmental Funds

Parks Health & Recreation Levy Fund (007)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Tourism Fund (004)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Community Development Block Grant (008)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

HOME Grant - Rental Rehabilitation (009)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 7

Governmental Funds

Grant Fund (015)

Comparison of Revenues, Expenditures and Change in Fund Balance

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 8

Enterprise Funds

Power and Light Fund (020) Comparison of Revenues, Expenditures and Change in Available Resources

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 8

Enterprise Funds

Sanitary Sewer Fund (030)

Comparison of Revenues, Expenditures and Change in Available Resources

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 8

Enterprise Funds

Water Fund (040) Comparison of Revenues, Expenditures and Change in Available Resources

(1) Unassigned fund balance is per February 2021 financial statements.

Schedule 9

Internal Service Funds

Central Garage Fund (090)

Comparison of Revenues, Expenditures and Change in Fund Balance

Schedule 9

Internal Service Funds

Staywell Health Care Fund (091)

Comparison of Revenues, Expenditures and Change in Fund Balance

Schedule 9

Internal Service Funds

Schedule 9

Internal Service Funds

Risk Management Fund (093)

Comparison of Revenues, Expenditures and Change in Fund Balance

Schedule 9

Internal Service Funds

Enterprise Resource Planning (ERP) Fund (095)

Comparison of Revenues, Expenditures and Change in Fund Balance

Schedule 10

Full-Time Equivalent Employees

Notes:

FY 2019-20 & FY 2020-21 FTE do not include Internal Service Funds headcount.

FY 2020-21 reduction in FTE is due to positions frozen during COVID-19.

FY 2021-22 includes part-time corrections to more accurately show hours worked, and the activation of previously frozen positions.

FY 2021-22 Police adopted includes headcount added outside of the budget process. Park, Recreation, and Tourism increase from Adopted to Adopted are due to a budget amendment that was included with the adoption of the

Department page FTE totals reflect where salaries are budgeted, the chart above reflects the reporting structure.

Schedule 10

Citywide Salary and Benefits Summary

FY 2021-22 represents the cost of full employement, assumes all vacancies are filled, and positions frozen during prior years are funded and filled.

Schedule 10

Total Personnel Budgets

Notes:

Excludes Retiree Health Insurance.

FY 2021-22 represents the cost of full employements, assumes all vacancies are filled, and positions frozen during prior years are funded and filled.

Community Development

Total Full Time Equivalent Positions

MISSION

The purpose of the Community Development Department is to enhance the quality of life in Independence by encouraging public involvement in the planning and creation of quality places in which to live, work, and play.

Community Development Administration

Total Full Time Equivalent Positions

The mission of Community Development Administration is to lead and direct development policy for the City so that safe, livable and sustainable environments are created and maintained.

SIGNIFICANT BUDGET CHANGES

Operating expenses increased primarily due to Tech Services ($15,000) and Risk Management ($5,000).

Community Development Neighborhood Services

Total Full Time Equivalent Positions

The Neighborhood Services Division strives for partnerships with citizens and businesses to promote and maintain a safe, healthy, and desirable living and working environment through the administration of the Property Maintenance, zoning, and right-of-way codes.

SIGNIFICANT BUDGET CHANGES

Operating expenses increased primarily due computer replacements ($4,600).

Community Development Development Services

Total Full Time Equivalent Positions

The mission of the Development Services Division is to apply City standards, Ordinances, and the Comprehensive Plan to ensure an attractive, safe, and functionally built environment that maintains the vision, values, and priorities of the community.

ACCOMPLISHMENTS

- Completed revisions to Unified Development Ordinance.

Community Development Transportation

Total Full Time Equivalent Positions

The purpose of the Transportation function is to provide a rider-focused transit system that provides access to employment, health, educational and social destinations through a fixed route system and paratransit program.

SIGNFICANT BUDGET CHANGES

One-time grants for KCAT ($500,000) and CDBG ($607,000) along with corresponding expenses moved to the grant funds: KCAT to Grant Fund 015 and CBDG to the CDBG Fund, 008.

Community Development Historic Preservation

Total Full Time Equivalent Positions

The Historic Preservation Division assists in cultivating diverse and sustainable places by encouraging community-wide preservation of our irreplaceable, historic built and natural environments through proactive preservation planning, public engagement, and reinvestment in traditional building stock.

Community Development Building Inspections

Total Full Time Equivalent Positions

The Building Inspections Division enhances the quality of life in Independence by ensuring that buildings are constructed, utilized, and maintained in a manner that reduces the risk to public health, while ensuring the safety, welfare, and trust of citizens, business owners, and visitors in all elements of construction throughout the City.

ACCOMPLISHMENTS

- Dangerous and unsafe building implementation in CityWorks.

- Implemented Vacant Structure Registration.

Community Development Regulated Industries

Total Full Time Equivalent Positions

The purpose of Regulated Industries is to issue licenses and permits to businesses and to inspect said businesses for compliance with City ordinances so that safe, healthy and livable environments are maintained.

ACCOMPLISHMENTS

- Revised business license process.

- Updated website and forms.

- Moved Food Handler classes online.

- Revision to Alcoholic Beverage Code.

- Implemented new small business fee and adjusted food truck fees.

SIGNIFICANT BUDGET CHANGES

The Health Inspector positions and food handler positions were moved from this division to the Health and Animal Services Department.

Community Development Grants

SIGNFICANT BUDGET CHANGES

One-time grants for KCAT ($500,000) along with corresponding expenses moved from the General Fund (002-4414).

Community Development Community Development Block Grant

Development Block Grant (008)

Total Full Time Equivalent Positions

The mission of the Community Development Block Grant (CDBG) Program is to improve the quality of life of low- and moderate-income residents living in Independence by providing for the availability, affordability, and sustainability of suitable living environments, decent housing, and economic opportunities.

SIGNFICANT BUDGET CHANGES

One-time grant for CDBG ($607,000) along with corresponding expenses moved from the General Fund (002-4414).

HOME Grant Community Development

The purpose of the HOME Investment Partnerships Program is to improve the quality of life in Independence by addressing the unmet housing needs of very low, low, and moderate income persons.

Health and Animal Services

Total Full Time Equivalent Positions

MISSION

Our mission is to protect and promote health and safety and prevent disease and injury for the residents and visitors in our community through a variety of programs and services.

Health and Animal Services Animal Services

Total Full Time Equivalent Positions

MISSION

Our mission is to protect the safety and welfare of people and animals in our community by promoting an environment of responsible pet ownership. Basic animal services, such as animal control, are provided through funding from the Health and Recreation levy (funds previously collected in the General Fund), and fees for services.

Health and Animal Services Animal Shelter Use Tax

Total Full Time Equivalent Positions

MISSION

Our mission is to protect the safety and welfare of people and animals in our community by promoting an environment of responsible pet ownership. This cost center provides for the operations of the regional animal shelter through funding from the Proposition P use tax.

ACCOMPLISHMENTS

- Maintained no-kill shelter status.

Health and Animal Services Environmental Services

SIGNIFICANT BUDGET CHANGES

Environmental Services was previously under Community Development, and was moved to be part of Health and Animal Services this year.

Health and Animal Services Health Services

Our mission is to protect the health, safety, and welfare of our community.

MISSION ACCOMPLISHMENTS

- Received State recognition as a stand-alone Health Department.

- Created structure of a new department.

- With the help of volunteers and staff from Fire and PRT, conducted COVID testing and vaccination clinics.

- Vaccinated more than 1,270 residents in the first week.

SIGNIFICANT BUDGET CHANGES

The Health Department was recognized by the State as a local public health authority, and staffing and resources were re-organized to meet the needs of the City. Environmental Services was previously under Community Development, and was moved to be part of Health and Animal

CemeteryMaintenance

AdventureOasisWaterPark

HistoricSites

GeorgeOwensNaturePark

FamilyRecreationPrograms

Nat’lFrontierTrailsMuseum

TurfFacilitiesMaintenance

PalmerSr.AdultCenter

TourismAdministration

ParksMaintenance

RogerT.SermonCommunityCtr.

TourismSales&Service

SeniorAdultServices

SportsAdministration

TrumanMemorialBuilding

Parks, Recreation, and Tourism

Parks, Recreation, and Tourism

The mission of Parks, Recreation and Tourism is to provide quality leisure, recreational, and educational opportunities for visitors to and residents of Independence.

Total Full Time Equivalent Positions MISSION DEPARTMENT WIDE ACCOMPLISHMENTS

The COVID-19 pandemic posed a significant impact on Parks/Recreation/Tourism operations. When the pandemic initially hit, staff successfully transformed our recreation facilities from their traditional role to pandemic response centers by hosting various collection sites for pandemic response items, COVID testing sites, food box distribution sites, and housing for AmeriCorps volunteers. Additionally, the Palmer Center transitioned from providing congregate to home-delivered meals, resulting in increased food delivery patron numbers. Staff at Palmer Center also increased wellness calls and continue to assist with the regional 211 vaccination help line for senior citizens. Once the pandemic allowed for eased restrictions, our facilities were reopened under modified conditions and staff successfully modified operations at every stage to accommodate current safety protocols, while serving our core purpose of recreation and wellness to the citizens of our community. Parks/Recreation/Tourism has and will continue to play an integral part in ESF-6 operations and continue to assist with the Region’s expanding mass care response. Park Maintenance staff took on the added role of elevated disinfection efforts on a regular basis within our recreation facilities and public outdoor use spaces, including playgrounds and pavilions. While the Tourism Division’s revenues were severely impacted by the COVID-19 pandemic, staff secured major grant funding that enabled us to market our community on a national scale in preparation for post-COVID tourism within our community.

Parks, Recreation, and Tourism

This division oversees the various divisions within the department to promote the City as a quality place to visit and reside by providing quality historic sites, parks, recreation facilities, tour packages, and various types of programs.

Parks, Recreation, and Tourism Park Maintenance Administration

Total Full Time Equivalent Positions

MISSION

This division runs daily park maintenance operations by scheduling work projects, purchasing materials, implementing repairs, and responding to inquiries from the public and other Cityaffiliated departments.

Parks, Recreation, and Tourism

Turf Facilities Maintenance

Total Full Time Equivalent Positions

MISSION

The Turf and Facilities Division is responsible for daily park maintenance operations, including: the care and cleaning of picnic shelters and park restroom facilities, athletic fields and landscape beds, snow removal, and mowing and trimming all City parks and related facilities.

SIGNIFICANT BUDGET CHANGES

- Increases due to Workers’ Compensation ($7,000) and increased Central Garage and fuel charges ($7,000).

Parks, Recreation, and Tourism Cemetery Maintenance

Total Full Time Equivalent Positions

MISSION

The Cemetery Maintenance Division is responsible for daily maintenance operations at Woodlawn Cemetery, including: routine turf and landscape maintenance, coordinating final arrangement needs and internments, and providing accurate facility records for public viewing.

Parks, Recreation, and Tourism Recreation Programs/Facilities Administration

Total Full Time Equivalent Positions

Recreation Programs/Facilities Administration is responsible for the daily management of a variety of recreation programs, facility operations, and staff associated with recreation programs/events, nature/community centers, sports complexes and other designated venues.

Parks, Recreation, and Tourism

Senior Adult Services

Total Full Time Equivalent Positions

MISSION

This cost center provides ongoing programs for resident senior adults and individuals with disabilities. These programs focus on, but are not limited to, nutritious lunches, nutrition and consumer education, health programs, social integration, and assistance with support services.

SIGNIFICANT BUDGET CHANGES

- Increase in Center Attendant hours (part-time, 0.25, $10,000) to support additional Senior Services.

- Addition of 1.0 FTE, Senior Program Specialist ($59,000).

- All costs associated with senior adult programs provided for through MARC and CDBG grant funds have been consolidated within this org key.

Parks, Recreation, and Tourism

Roger T. Sermon Community Center

Total Full Time Equivalent Positions

MISSION

The mission of the Roger T. Sermon Community Center is to provide an affordable and modern option for a variety of services, including: health and physical fitness opportunities; rental options for weddings, birthday parties, and business meetings; as well as cultural arts through theatre performances.

Parks, Recreation, and Tourism

George Owens Nature Park

Total Full Time Equivalent Positions

MISSION

George Owens Nature Park is an 85-acre park site that features natural areas, restored grasslands, two lakes, an extensive hiking trail system, a nature center with hands-on children activities and exhibits, picnic opportunities and an organized camp area.

Parks, Recreation, and Tourism Wellness Administration

Total Full Time Equivalent Positions

MISSION

The mission of Wellness is to work closely with community partners to promote and implement a variety of innovative, effective, accessible health and wellness programs and services including nutrition education, active living, and smoking cessation.

Parks, Recreation, and Tourism Park Maintenance -

Security and Inspection

Total Full Time Equivalent Positions

MISSION

This division oversees and manages park revitalization, maintenance, and capital improvement projects planned for the City's park system made possible through the Parks and Recreation Sales Tax.

SIGNIFICANT BUDGET CHANGES

- Additional funding for increased Park Patrol operations.

- Risk management ($52,000) and fleet maintenance ($17,000), tech services ($30,000), and professional services ($32,000) increases.

Parks, Recreation, and Tourism Truman Memorial Building

Total Full Time Equivalent Positions

MISSION

The mission of this division is to provide ongoing operation of the City's historic Truman Memorial Building, which serves as a community asset capable of hosting a variety of different functions.

SIGNIFICANT BUDGET CHANGES

- The decreased adopted budget in this org key is due to consolidation of job duties and the transfer 1.0 FTE to 6047 Independence Uptown Market, and a decrease in operating hours.

Parks, Recreation, and Tourism Palmer Senior Adult Center

Total Full Time Equivalent Positions

MISSION

The mission of the Palmer Center is to provide diverse adult programs and services including a daily meal program, fitness opportunities, education classes, recreational programs, and a wide variety of social needs.

SIGNIFICANT BUDGET CHANGES

- The decrease in this org key is from shifting all grant-funded expenditures to org key 6076 Senior Adult Services, in the Recreation Levy Fund.

Parks, Recreation, and Tourism Family Recreation Programs

Total Full Time Equivalent Positions

MISSION

The mission of Family Recreation Programs is to provide ongoing development and implementation of family-oriented recreation programs consistent with the recommendation from the Independence Parks & Recreation and Open Space Master Plan, giving special attention to the development of youth and family programs, outdoor programs, festivals, and special events.

SIGNIFICANT BUDGET CHANGES

- The budget increase is a result of increased facilities maintenance and assets at George Owens Nature Park, including: water treatment, exhibit maintenance, and mowing and landscaping.

Parks, Recreation, and Tourism

Adventure Oasis Water Park

Total Full Time Equivalent Positions

This division serves to provide ongoing management, support, and supervision of the Adventure Oasis Water Park, spray grounds, and development of aquatics-oriented programs, activities, and events.

SIGNIFICANT BUDGET CHANGES

- Last year’s budget actuals reflect the closure of Adventure Oasis Water Park for the 2020 pool season, during the height of the COVID-19 pandemic. The adopted budget for FY 2021-22 provides for the reopening of this facility, with full-scale operations and modified capacities.

Parks, Recreation, and Tourism Sports Administration

Total Full Time Equivalent Positions

The mission of Sports Administration is to support and fund year-round sports programs for Independence residents of all ages and abilities at multiple indoor and outdoor facilities.

Parks, Recreation, and Tourism Uptown Market

Total Full Time Equivalent Positions

The mission of the Independence Uptown Market is to provide a modern, unique, and versatile addition to the list of community assets capable of hosting a variety of different functions including a Farmers’ and Crafters’ Market, special events, recreation and fitness programs, and private rental groups.

SIGNIFICANT BUDGET CHANGES

The increased adopted budget in this Org is due to consolidation of job duties and the transfer 1.0 FTE from 6042 Truman Memorial Building.

Parks, Recreation, and Tourism

Sermon Center-Sales Tax

Total

Full Time Equivalent Positions

MISSION

The mission of the Roger T. Sermon Community Center is to provide an affordable and modern option for a variety of services, including: health and physical fitness opportunities; rental options for weddings, birthday parties, and business meetings; as well as cultural arts through theatre performances.

Parks, Recreation, and Tourism Tourism Administration

Total Full Time Equivalent Positions

MISSION

Tourism Administration oversees administrative, marketing, and historic preservation activities associated with the Tourism Division of the department.

SIGNIFICANT BUDGET CHANGES

- Increase in tech services ($29,670), mailing and shipping ($5,000), and interfund charges ($72,000).

Parks, Recreation, and Tourism National Frontier Trails Museum

Total Full Time Equivalent Positions

MISSION

The mission of the National Frontier Trails Museum is to serve both the local community and visitors to Independence by operating a historic museum featuring the westward expansion of the United States and the role Independence played in that development.

SIGNIFICANT BUDGET CHANGES

The 2019-20 and 2020-21 adopted budgets reflected reduced operations at the National Frontier Trails Museum due to staff vacancies. The actual expenditures for both years reflect the forced closure resulting from the COVID-19 pandemic. The adopted 2021-22 budget provides for minimal operational expenses, specifically utilities, as this facility will remain closed as a result of the significant loss of Transient Guest Tax revenues. While the facility remains closed, 5.0 full-time positions and 1.79 FTE parttime positions will be held vacant. If the facility re-opens under direct City management in the future, it will be necessary to add the FTE and budget to fill the positions.

Parks, Recreation, and Tourism

Historic Sites

Total Full Time Equivalent Positions

The Historic Sites Maintenance division is responsible for daily historic site maintenance operations, including mowing and trimming, landscape bed care, snow removal, litter and debris removal, and basic repairs and painting for all City-owned historic properties.

Parks, Recreation, and Tourism

Tourism Sales & Services

Total Full Time Equivalent Positions

The Tourism Sales and Services cost center is responsible for the daily operations of the Visitor Experience Center, directly and indirectly soliciting, securing, and supporting group tours, events, conferences, etc., and training of tourism-related volunteers.

Parks, Recreation, and Tourism

Parks, Recreation, and Tourism Grants

Parks, Recreation, and Tourism Capital Projects and Debt

Finance and Administration

Process, record, and report all transactions in a timely and accurate manner using sound business practices and methods. In performing our mission, we will maintain a well trained staff and utilize the tools provided by the City to their greatest advantage.

Finance and Administration Administration

Total Full Time Equivalent Positions

The mission of Finance Administration is to provide leadership and direction for the City's financial duties and responsibilities so that all financial assets of the City are protected.

ACCOMPLISHMENTS

- Completed Investor relations website that also allowed citizens to review and understand all outstanding debt of the City​.

- Successfully migrated from a City Clinic model to utilizing Hy-Vee clinics for employee walk up health needs​.

- Converted two 457 plan record-keepers into one and reduced fees charged to participants.

- Restructured CIP process and financial forecasting and presenting to Council before budget process began​.

- Successfully leveraged the $6.9 million in CARES funding .

SIGNIFICANT BUDGET CHANGES

- Reallocation of headcount including: movement of employees charged to Internal Service Funds to those departmental pages and budgets.

- Retiree health insurance allocated to the administrative org key for all of Finance and Administration.

Finance and Administration Accounting

Total Full Time Equivalent Positions

MISSION

The mission of Accounting is to maintain the accounting records for all of the City's operations and component units so that the records meet all governmental accounting standards and the annual independent audit is completed.

ACCOMPLISHMENTS

- Successful implementation of Munis CAFR builder​.

- Significant improvements to audit process.

- Transfer of Payroll from Accounting to Human Resources.

Finance and Administration City Memberships

The purpose of City Memberships is to provide funding for various civic, government, and economic development partnerships that are not department-specific.

Finance and Administration Copy and Mailing Center

Total Full Time Equivalent Positions

The mission of the Copy and Mailing Center is to provide centralized postal services and mail delivery to City departments.

SIGNIFICANT BUDGET CHANGES

- Reduction in mailing and shipping budget by $50,000.

Finance and Administration Procurement

Total Full Time Equivalent Positions

MISSION

The mission of Purchasing is to provide a centralized system for the purchase of goods and services by City Departments in accordance with all legal requirements and ethical standards.

ACCOMPLISHMENTS

- Operated at a high level of production while down several positions.

- Implemented additional review of requisitions that identified spending that was attempted during the spending freeze in 2020.

- Local Preference Policy was implemented.

Finance and Administration

Human Resources

Total Full Time Equivalent Positions

The mission of Human Resources is to assist the City of Independence in meeting the needs of its citizens and achieving the strategic goals of City Council by recruiting, selecting, developing, motivating and retaining a well-trained, professional City staff, responsive to the customer/citizen.

ACCOMPLISHMENTS

- Managed the recruitment, hiring and onboarding of just over 70 new hires – all in a virtual environment.​

- Administered the retirement process for just over 40 employees.

- Assisted in leading the power production plant reduction in force, working with the

- Hired a Payroll Manager and continued the extensive cleanup work from the

- Implementation and management of the first ethics hotline for the City.​

- As part of the COVID leadership team, developed and administered new COVID policies and work schedules. Administered and managed COVID leave, questions, inquiries and travel requests for hundreds of employees.​

- Administered and managed open enrollment in a 100% virtual environment.​

- Conducted RFP process which resulted in hiring a new benefits consultant.​

- Moved Wellness under HR umbrella and began the work of developing a COI wellness strategy.

SIGNIFICANT BUDGET CHANGES

- Increase in budget to accommodate increased 457 advisory costs ($45,000).

Finance and Administration Law

Total Full Time Equivalent Positions

MISSION

To conduct and carry on all civil suits, actions, and proceedings; draft or review proposed City ordinances and amendments; and, prepare or officially approve as to form all contracts, deeds, bonds, and other documents.

ACCOMPLISHMENTS

- Outside Counsel expenditures were reduced through law implementing an administrative review of all legal claims against the City and assigned the most efficient outside counsel for each specific claim depending on the facts.

SIGNIFICANT BUDGET CHANGES

- Headcount updated to include grant funded FTE.

Finance and Administration Technology Services

Total Full Time Equivalent Positions

MISSION

The mission of Technology Services is to provide information technology services to all City departments so that City employees have effective and efficient hardware and software to use and that systems and data are secure.

ACCOMPLISHMENTS

- Helpdesk & Security Services outsourced; increased capabilities, reduced cost​

- Deployed enhanced cybersecurity tooling; hired cybersecurity specialist​

- Engineered modern data center infrastructure; reduced footprint 80%​

- Transitioned to Microsoft Office365​

- Initiated managed printing services; reduced capital spend, improved support​

- Consolidated several address data sets into a single data set​

- Deployed three Cityworks solutions (Dangerous Buildings, Unsafe Buildings, Landlord-Tenant Violations​

- Deployed City Council / City Manager request tracking in Cityworks​

- Realigned IndepNow requests structure to be more user friendly for citizens and make internal request routing more efficient.

- Implemented credit card payments in Municipal Court

SIGNIFICANT BUDGET CHANGES

- Purchase of ESRI Enterprise agreements for small government ($52,650) and training / support ($22,500)

- Microsoft Azure administrative outsourcing services ($64,800)

- Finance and Admin tech services and ERP charges consolidated in this org key

Finance and Administration

Voice and Data Systems

Total Full Time Equivalent Positions

The mission of Voice and Data Systems is to maintain the telephone trunk system for land line telephones, radios, and to provide internet connectivity to City Departments so that modern communication can exist.

MunicipalServicesDirector

LisaPhelps

CollectionSystemMaintenance

StormWaterMaintenance

LaboratoryServices

StormWaterPermitCompliance

CentralGarage

Engineering

FacilitiesManagement

Sanitary Sewer

StreetMaintenance

Municipal Services

Total Full Time Equivalent Positions MISSION

The Municipal Services department provides professional services for public safety and convenience in the areas of infrastructure design, construction, street maintenance, fleet management, facility management, water pollution control, and stormwater management.

Municipal Services Administration

Total Full Time Equivalent Positions MISSION

The Administration Division is responsible for the supervision and administration of the Public Works division, including support and response to the City Manager and City Council.

SIGNIFICANT BUDGET CHANGES

- Operating expenses increased primarily due to Tech Services ($31,000) and General Fund Risk Management ($160,000) being centralized in this org key.

Municipal Services Engineering

Total Full Time Equivalent Positions MISSION

The Engineering Division provides public works services through the following work elements: plan review, design, investigations, studies, contract specifications, inspections, permits and traffic engineering, land acquisition for public improvements, and tracking project reimbursements on construction projects.

SIGNIFICANT BUDGET CHANGES

- Addition of 3.0 FTE for SSES program ($184,804), to mitigate clear water from entering sewage collection system.

Municipal Services Facilities Management

Total Full Time Equivalent Positions

MISSION

The Facilities Management Division is responsible for maintenance and repair of existing City facilities as well as the design and construction management of new construction and remodeling projects to provide a safe and comfortable environment for City employees and citizens.

Municipal Services Street Maintenance

Total Full Time Equivalent Positions

MISSION

Street Maintenance is responsible for maintaining 575 miles of City streets and 38 bridge structures, as well as the coordination of the Drop-Off Depot events.

SIGNIFICANT BUDGET CHANGES

- Operating expenses increased due to reduction in personnel services charge back, employees are directly allocated as a result of reorginization.

- Additional increase in supplies ($30,000) to reflect increase in cost of supplies.

- Increase for street light energy consumption ($295,000).

Municipal Services

Storm Water Operations & Maintenance

Total Full Time Equivalent Positions

MISSION

The mission of the Storm Water Program is to maintain the City's storm water system to the standards of the Missouri Department of Natural Resources so that the MS4 operating permit is granted to the City.

Municipal Services Capital Projects

Municipal Services Debt

Office of the City Manager

Municipal Services

Police

Fire

Health & An Animamal Se S r ervice c s es

Parks, Recreation & Tourism

Finance & Administration

Public Utilities

Community Development

Adam Norris

Manager

Assistant City

Zach Walker

City Manager

Mark Randall

Assistant City Manager

Office of the City Manager

The City Manager is the Chief Administrative Officer of the City government, exercising direction over all municipal operations. The Office of the City Manager is comprised of the City Manager and Public Information Officer departments.

Office of the City Manager

Office of the City Manager

The mission of the City Manager is to serve as the Chief Administrative Officer of the City government so that Mayor and City Council-directed policies are implemented and city services are delivered efficiently and effectively.

Office of the City Manager

Public Information Office

MISSION

The mission of the Public Information Office is to disseminate information on municipal programs, services, and events in an effective and efficient manner while improving customer service through communication on multiple platforms, both internally and externally.

ACCOMPLISHMENTS

Communications has played a vital and substantial role in the last year providing our citizens much needed information quickly during the COVID-19 pandemic. The Communications team adapted quickly to support the need for our own broadcasts of press conferences, virtual meetings and live events without the ability to have an audience in attendance. It is anticipated that post-pandemic, the public will demand at least some of the same access these changes have allowed so steps are underway to support ongoing use of hybrid public meetings.

SIGNIFICANT BUDGET CHANGES

- The addition of 1.0 FTE, Communications and Public Outreach Coordinator, to provide enhanced communications for the Utility Funds. The headcount and salary are shown on the Utility Fund pages where it is budgeted.

- The Multimedia Communications Specialist for Parks, Rec, and Tourism was transferred fully to that department for headcount and salary purposes for more accurate allocations.

Offices of the Mayor and City Council

City

Offices of the Mayor and City Council

Total Full Time Equivalent Positions

The Mayor and City Council is the legislative and governing body of the City, consisting of seven members elected by the voters within the City. The Mayor and Council operate with powers granted by the City Charter to enact legislation, appoint the City Manager, Management Analyst and City Clerk. Additionally, the Mayor and Council appoint members to various advisory boards and commissions which provide them with community input and ideas.

Offices of the Mayor and City Council

Office of the Mayor

Total Full Time Equivalent Positions

The mission of the Mayor is to serve as the presiding officer of the City Council, as provided by the City Charter. As the presiding officer, the Mayor works with other members of the City Council to enact legislation and make appointments to various advisory boards and commissions.

Offices of the Mayor and City Council Office of the City Council

Total Full Time Equivalent Positions

The mission of the City Council is to enact legislation that protects the health, peace, property, and general welfare of the citizens of the City of Independence. The Council consists of four members elected by the voters of the Council District, and two members elected at-large, or by all Independence voters.

Offices of the Mayor and City Council City

Clerk

Total Full Time Equivalent Positions

- Invested in professional codification for City Code, which has improved the look and useability of the online City Code.

- Implemented a new practice of having all boards and commissions agendas uploaded onto the City web-site as well as included on the City Calendar, which has improved communication and transparency of public meetings.

- By the close of this fiscal year, estimate processing around 350 records request with a 2.5 day average turn around. Response time was under four days, even during COVID-19.

SIGNIFICANT BUDGET CHANGES

- Election costs were added to professional services ($100,000).

The mission of the City Clerk is to manage and record the official proceedings of the City of Independence so that the official business of the City is duly recorded and maintained.

Offices of the Mayor and City Council Management Analyst

The mission of the Management Analyst program is to systematically and continuously examine all works of the City in order to identify opportunities to reduce costs, increase program efficiency, improve program effectiveness, and enhance professionalism of the administration of the City.

The Independence Fire Department will meet the challenges of present and future community needs through pro-active leadership, dedication to our core values, provision of quality All-Hazard emergency services, and community risk-reduction strategies in an efficient and effective manner.

Fire Administration

Total Full Time Equivalent Positions

MISSION

The Administration Division is responsible for the overall management of the department, and ensures that strategic goals and objectives meet the visions and mission of the department as a whole.

ACCOMPLISHMENTS

- PEER counseling for department personnel

- Cancer prevention program

- COVID-19 response

SIGNIFICANT BUDGET CHANGES

Retiree health insurance increased, and was consolidated to this org key for the General Fund portion of the department costs.

Fire Fire Operations

Total Full Time Equivalent Positions

MISSION

The mission of the Fire Operations Division is to serve the emergent needs of the community with response to emergency medical calls, fires, explosions, bomb threats, vehicle accidents, homeland security terrorism, hazardous chemical spills, and other emergency calls.

ACCOMPLISHMENTS

- Change in response management to be proximity based

SIGNIFICANT BUDGET CHANGES

- Workers' compensation increase ($313,778) in Salary & Benefits.

- Operating expense increases include bond payments ($20,000), and equipment maintenance ($73,000).

Fire Emergency Medical Services

Total Full Time Equivalent Positions

MISSION

The Emergency Medical Services (EMS) and Wellness Division is responsible for the training and operation of emergency medical services to ensure firefighters are able to provide basic and advanced life support measures to the citizens.

SIGNIFICANT BUDGET CHANGES

Professional services increase ($42,800) for an EMS Medical Director.

Fire Fire Prevention

Total Full Time Equivalent Positions MISSION

The Fire Prevention Division provides for the safety of the residents through inspection of new businesses within the City, fire code enforcement, plan reviews, fire safety education, fire investigation, and the re-inspection of all violations found during company inspections.

Fire Maintenance

Total Full Time Equivalent Positions

MISSION

The Maintenance Division manages the service, preventative maintenance, and replacement programs for all staff vehicles, fire apparatus, facilities, and equipment.

SIGNIFICANT BUDGET CHANGES

- Salary and benefits budget reflects workers' comp and retiree health costs.

Fire Training and Professional Development

Total Full Time Equivalent Positions

MISSION

The Training/Professional Development Division provides training which promotes safe, effective, and efficient emergency response to the community.

Fire Emergency Preparedness

Total Full Time Equivalent Positions

MISSION

The Emergency Preparedness Division is responsible for support during times of disaster for all local, state, and federal departments across the spectrum of the emergency management functions, including preparedness, response, prevention, and recovery.

Fire Sales Tax Program

Total Full Time Equivalent Positions

MISSION SIGNIFICANT BUDGET CHANGES

The purpose of this cost center is to budget and track expenditures of Fire Protection Sales Tax funds to ensure compliance with the stated goals of this initiative when passed by voters.

GarryHelm

PresidingJudge

MunicipalCourtAdministrator

MunicipalJudge

Total

Municipal Court

The Municipal Court has jurisdiction of cases involving violation of City ordinances; establishes and collects all fines, court costs, and bond money; issues warrants, subpoenas, and orders of commitment; and provides other services as prescribed by the Charter of the City of Independence, Missouri and applicable State Statutes.

Municipal Court Municipal Court

Total Full Time Equivalent Positions

MISSION

The Municipal Court has jurisdiction of cases involving violation of City ordinances; establishes and collects all fines, court costs and bond money; issues warrants, subpoenas, orders of commitment; and provides others services as prescribed by the Charter of the City of Independence, Missouri and applicable State Statutes.

SIGNIFICANT BUDGET CHANGES

- There were no increases to FTE, headcount was updated to more accurately reflect the hours the parttime employees are working.

- The budget for the Youth Court ($39,000) is included in the Municipal Court budget.

ChiefofPolice

OperationsSupportBureau

AdministrativeServices

BradHalsey

Communications

FieldOperationsBureau

CrimeScene

DrugAbuseResistanceEduc.

Detention

Fiscal

InternalAffairs

Records

SupportServices Technology

TrainingandEquipment

Investigations

Patrol

SpecialEnforcement

SpecialOperations

TacticalOperations

Police

Total Full Time Equivalent Positions

MISSION

The Police Department plays a critical role in reducing crime and increasing the perception of public safety, and lowering crime and disorder. The department strives to accomplish this by adhering to the four departmental priorities: strategic policing, staffing, equipment, and facilities and technology.

Police Chief of Police

Total Full Time Equivalent Positions

MISSION

The Office of the Chief of Police is responsible for the overall administrative control of the operations and leadership of the department. Responsibilities include technology and fleet management, budget and accounting processes, inventories, professional standards, and recruitment.

SIGNIFICANT BUDGET CHANGES

- Part-time inventory technician increased to 1.00 ($13,000)

- Department wide, 6.0 Police Officers were reduced to Police Cadets to begin a new recruitment program (budget savings of $80,000 in the General Fund)

- Retiree health insurance increase due to increased premiums and increased number of police department retirees.

Police Grants

Total Full Time Equivalent Positions

MISSION

The grants program includes federal and state grant programs to assist the Police Department in maintaining peace and order. The general fund portion of this program is the match needed to receive the grants or the funding gap between the actual cost of the program and the amount available from the grantor agency.

Total Full Time Equivalent Positions

Police Training

The mission of this unit is to coordinate all department training, including: mandated Police Officer Standards and Training (POST) certification, federal, state, and City requirements, and all external training activities. This unit is also responsible for the Field Training Officer (FTO) program.

ACCOMPLISHMENTS

- Through the use of the PoliceOne online training program, officers were able to obtain their mandated training hours during the COVID-19 pandemic.

SIGNIFICANT BUDGET CHANGES

Operating expenses increased primarily due to Central Garage (fleet maintenance, $93,000) and increased training budget ($15,000).

Police Patrol

Total Full Time Equivalent Positions

MISSION

The mission of the Patrol division is to reduce crime and disorder by being the initial responder for all calls from citizens 24 hours per day, 365 days per year.

Police Investigations

MISSION

The Investigations division consists of the Criminal Investigations Unit, the Drug Enforcement Unit, and the Street Crimes Unit. This division is tasked with reactionary as well as proactive investigation of crimes, including homicides, assaults, domestic violence, drug offenses, and burglaries.

Police Special Operations

Total Full Time Equivalent Positions

MISSION

The mission of the Tactical Operations division is to reduce crime and disorder by providing support, coordination, and proactive patrol in high-crime and/or violation areas through the Canine Unit, Special Weapons and Tactics Team (SWAT), and Explosive Ordnance Disposal (EOD) Team.

Police Special Enforcement Unit

Total Full Time Equivalent Positions

MISSION

This Unit focuses on responding to traffic complaints and accidents, and enforcing traffic laws. Their duties include radar/laser operations, accident reconstruction, and DWI enforcement. This Unit also supports special events in the community.

Police STEP (formerly DARE) Total Full Time Equivalent Positions

MISSION

The mission and curriculum of the Students Transitioning Exceptionally Prepared (STEP) Program is to prevent or curtail drug, alcohol, and tobacco use amongst students, as well as proactively network with internal and external agencies to track registered sex offenders within the City boundaries and their proximity to schools and daycares.

Police Community Services Unit

Total Full Time Equivalent Positions

MISSION

The Community Services Unit provides citizens with the information and resources needed to improve their quality of life and sense of security. This is accomplished through community meetings, the Disorderly House Program, Homeless Outreach Program, public demonstrations, Volunteer in Police Services (VIP's), crime prevention and education programs, and the Crisis Intervention Team (CIT).

Police Crime Scene Unit

Total Full Time Equivalent Positions MISSION

The Crime Scene Unit consists of investigators who are responsible for processing crime scenes to gather evidence and other data to support criminal charges. The Unit is also responsible for collecting video evidence from local businesses and residences. The collection and identification of evidence is utilized in the prosecution of criminal defendants, helping to reduce crime in the community.

Police Detention Unit

Total Full Time Equivalent Positions

The Detention Unit is responsible for processing and housing individuals arrested for violations of City Ordinances, State Statutes, and Federal laws. The unit houses prisoners on a short-term basis who are held for investigation of an alleged violation, awaiting arraignment, or until their bond is posted. Longterm prisoners are transferred and incarcerated at an outside facility.

SIGNIFICANT BUDGET CHANGES

- One additional part-time detention officer was added (0.50 FTE, $19,000).

Police Records Unit

Total Full Time Equivalent Positions MISSION

The Records Unit provides customer service to the public by completing police reports, answering questions, and receiving and returning warrants, subpoenas, and other pertinent court and jail papers.

Police Communications Unit

Total Full Time Equivalent Positions

MISSION ACCOMPLISHMENTS

The Communications Unit receives emergency and non-emergency telephone calls from the public and routes them to the appropriate responder: Fire, Police, or AMR.

- Over the past year, nearly all vacant positions in the Communications Unit were filled. Hiring has been streamlined and training is now consistent with the training program for officers. As a result, more trainees have been retained.

- Overtime costs in the Communications Unit have decreased over the past year as a result of increased

Police Use Tax Program

Revenues generated from the Proposition P tax will hire certified and non certified police officer candidates.

Police Sales Tax Program

Total Full Time Equivalent Positions

This cost center serves to provide oversight and management of the revitalization and capital improvement projects planned for the City's Police Department, made possible through the adoption of a one-eighth cent sales tax.

Power and Light Director

Power and Light

Total Full Time Equivalent Positions*

MISSION

To provide reliable and affordable electric energy to the customers of Independence.

*In FY 2021-22, FTE was restated to include temporary, intern, and non-departmental positions.

Power and Light Administration

Total Full Time Equivalent Positions

MISSION

The mission of Administration is to provide leadership of the Department to ensure reliable and environmentally-friendly electric service to the citizens of Independence at the lowest possible cost consistent with sound business practices.

ACCOMPLISHMENTS

- Diamond Reliable Public Power Provider (RP3) designation from the American Public Power Association for providing reliable and safe electric service.

Power and Light Accounting/Finance

Total Full Time Equivalent Positions

MISSION

The mission of Accounting is to ensure all financial and statistical records of the utility are kept and reported on in accordance with governmental best practices and regulations so that the results are transparent to rate payers.

Power and Light Communications

Total Full Time Equivalent Positions

MISSION

Responsible for planning, engineering, administration, installation, and maintenance of IPL's internal communications, security, and fiber optic facilities. Areas of responsibility include: fiber optic systems, telephone systems, CCTV systems, traffic signals, mobile radio, wireless, microwave, SCADA/EMS, and Relay Protection communication links.

SIGNIFICANT BUDGET CHANGES

- Increase in Communication Services to provide City internet services ($25,000).

Power and Light Engineering

Total Full Time Equivalent Positions

MISSION

The mission of Engineering is to design transmission, substation and distribution systems and manage construction projects so that the City's high voltage electrical power system maintains the excellent reliability that has been achieved.

SIGNIFICANT BUDGET CHANGES

- Increase in computer equipment ($50,000) and professional services ($95,000). Due to the elimination of the Project Development Division, 3.0 FTE's salary and operating expenses were moved to the Engineering budget.

Power and Light Environmental Health & Safety

Total Full Time Equivalent Positions

The mission of Environmental Health & Safety is to ensure regulatory compliance through training and emergency response in order to reduce injuries, accidents and environmental impact.

SIGNIFICANT BUDGET CHANGES

This Fiscal Year budget includes additions funds for monitoring the Blue Valley Ash Pond Cap and to evaluate required maintenance and repair erosion, renewal of multiple operating permits covering air, water and wastewater as well as First Aid/CPR training certification renewals for employees.

Power and Light Meter Reading

Total Full Time Equivalent Positions

MISSION SIGNIFICANT BUDGET CHANGES

The mission of Meter Reading is to accurately read electric watt-hour and water consumption meters so that customers are billed correctly for their electricity consumption.

- Purchase of Meter Reading hand-held computers ($136,000).

- FTE includes 3.0 temporary meter readers.

Power and Light Production

Total Full Time Equivalent Positions

MISSION

The mission of Production is to maintain and operate power production equipment so that electricity is generated safely and efficiently.

SIGNIFCANT BUDGET CHANGES

Closure of the Blue Valley Power Plant.

Power and Light Project Development

Total Full Time Equivalent Positions

MISSION SIGNIFCANT BUDGET CHANGES

The mission of project development is to provide financial and contract oversight services for the department so that services can be delivered efficiently and effectively.

The Project Development Division has been eliminated and all expenses disbursed to other divisions.

Power and Light Purchased Power

Total Full Time Equivalent Positions MISSION

The mission of Purchased Power is to manage agreements - including the cost of energy, demand and transmission charges - with other utilities and the Southwest Power Pool so that electricity is acquired at the lowest cost.

Power and Light Security/NERC

MISSION

The mission of Security/NERC is being responsible for managing compliance with North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) and Operations & Planning Reliability Standards and oversight of Cyber Security for IPL industrial control systems, and represent City interests with Federal, Regional and local regulatory organizations.

Power and Light Support Services

Total Full Time Equivalent Positions

MISSION

The Support Services division is responsible for working with the public and local businesses, and administers the rebate program.

Power and Light System Operations

Total Full Time Equivalent Positions

MISSION

Responsible for the 24/7 operations of the City's electrical system. Major areas of responsibility include dispatching of the generation resources, operation of the transmission system, wholesale power purchases and sales, and management of the Department's regulatory reliability compliance efforts in an efficient, cost effective, and reliable manner.

Power and Light Transmission and Distribution

Total Full Time Equivalent Positions MISSION

The mission of Transmission and Distribution is to maintain, repair and the City's electrical transmission and distribution systems in order to maintain the reliability of the systems.

SIGNIFCANT BUDGET CHANGES

- This Fiscal Year budget includes additional expenses for replacing substation batteries ($35,000), locating services ($300,000) and desert storm cabinet repairs ($100,000).

Power and Light Utility Field Service

Total Full Time Equivalent Positions

The Utility Field Service Division is responsible for turning both electric and water services on and off, field services of delinquent accounts, and reading meters for customer transfers.

Power and Light Vehicle Maintenance

Total Full Time Equivalent Positions

MISSION

The mission of Vehicle Maintenance is to procure and maintain the Power and Light fleet so that personnel have available and safe vehicles to perform their jobs.

Power and Light Warehouse and Stores

Total Full Time Equivalent Positions

MISSION

The mission of the Warehouse and Stores is to order, receive, issue and maintain material and tools for line crews, maintenance personnel and outside contractors.

SIGNIFCANT BUDGET CHANGES

Due to the elimination of Project Development, two positions and operating expenses were added to the Warehouse & Stores budget.

Power and Light Non-Departmental

Total Full Time Equivalent Positions

MISSION

Provides funding for department-wide activities not attributable to one single power and light program.

SIGNIFICANT BUDGET CHANGES

- Salaries and Benefits expenses includes additional FTE support and operating expenses from other departments.

- ERP interfund charges and tech services department wide consolidated to this org key.

Power and Light Capital Projects

Power and Light Debt

MunicipalServicesDirector

LisaPhelps

CollectionSystemMaintenance

StormWaterMaintenance

LaboratoryServices

StormWaterPermitCompliance

CentralGarage

Engineering

FacilitiesManagement

Sanitary Sewer

StreetMaintenance

Sanitary Sewer

Sanitary Sewer, formally known as Water Pollution Control, is part of Municipal Services, and is responsible for the maintenance and enforcement of the City's water pollution control policies and regulations.

Sanitary Sewer Administration

Total Full Time Equivalent Positions

MISSION

The mission of the Administration program is to provide leadership and back office support for the development, maintenance and enforcement of the City's water pollution control policies and regulations.

SIGNIFICANT BUDGET CHANGES

- Operating expenses increased primarily due to Tech Services charges being centralized in this org key.

Sanitary Sewer Facilities

Total Full Time Equivalent Positions

MISSION

The mission of the Facilities division is to ensure reliable operation of wastewater collection and treatment systems through preventative and predictive maintenance practices.

SIGNIFICANT BUDGET CHANGES

- Equipment costs for the purchase of a boom truck ($98,000) and electrician's truck ($36,000).

Sanitary Sewer Treatment Facilities

Total Full Time Equivalent Positions

MISSION SIGNIFICANT BUDGET CHANGES

The mission of the Treatment Facilities program is to operate and maintain the Rock Creek Wastewater Treatment Plan and thirteen pumping stations throughout the City so that wastewater meets all National Pollutant Discharge Elimination System permit limits.

- Increased cost of hydrated lime supply ($320,000) and professional services ($82,000).

Sanitary Sewer Collection System Maintenance

Total Full Time Equivalent Positions

MISSION

The mission of Collection System Maintenance is to maintain over 614 miles of sanitary sewer pipe and over 14,720 manholes to a level that minimizes the number and frequency of overflows and backups.

SIGNIFICANT BUDGET CHANGES

- Increased fleet maintenance charges ($50,000.)

Sanitary Sewer Environmental Services

Total Full Time Equivalent Positions

The mission of the Environmental Services program is to inspect, sample and analyze industrial sewage discharges to determine compliance with National Pretreatment regulations.

Sanitary Sewer

Inter-Jurisdictional Agencies

Total Full Time Equivalent Positions

MISSION

The mission of the Inter-Jurisdictional program is to provide administrative support for cooperative sewer services within the contiguous watersheds of adjoining municipalities and the Little Blue Valley Sewer District.

SIGNIFICANT BUDGET CHANGES

- Little Blue Valley Sewer District rate increase ($450,000)

Sanitary Sewer Non Departmental

Total Full Time Equivalent Positions

MISSION - Increase in salaries includes Worker's Comp increase ($75,000).

Provides funding for department-wide activities not attributable to one single sewer program.

SIGNIFICANT BUDGET CHANGES

- Increase in operating expenses includes centralization of tech services and ERP charges.

Capital Projects Sanitary Sewer

Municipal Services Debt

The mission of the Water Department is to produce and supply drinking water that meets the requirements of the Safe Drinking Water Act and standards of the Missouri Department of Natural Resources to about 250,000 people, including residents of Independence and 12 wholesale customers.

Water Administration

Total Full Time Equivalent Positions

MISSION ACCOMPLISHMENTS

The mission of the Administration program is to provide leadership and back office support so that the Department can successfully meet the requirements of the Safe Drinking Water Act and standards of the Missouri Department of Natural Resources.

- Completed the Water Department Risk and Resilience Assessment and updated the Water Department Emergency Operation’s Plan. Both items were certified to the EPA as stipulated in the America’s Water Infrastructure Act of 2018.

- Maintained operations and provided ample supply of safe drinking water during a global pandemic.

SIGNIFICANT BUDGET CHANGES

Operating expenses increased primarily due centralization of tech services charges to this org key.

Water Field Service

Total Full Time Equivalent Positions

The mission of the Water Field Service Division is to install, maintain and disconnect meters for over 48,517 customers so that consumption levels are accurate and service line leaks can be identified for repair.

SIGNIFICANT BUDGET CHANGES

- Meter replacement program continuation ($105,540).

Water Customer Service

Total Full Time Equivalent Positions

MISSION ACCOMPLISHMENTS

The mission of Customer Service is to accurately issue utility bills to all City water, sewer and electric customers and to operate a customer service center for all billing inquiries.

Independence CARES Act Utility Assistance Program:​

- Customer Service staff worked through a partnership with the Community Services League to process over 5,000 applications for assistance.​

- $2,249,123 of CARES funding was used to assist residents in paying their delinquent utility accounts.

SIGNIFICANT BUDGET CHANGES

- Professional services increased ($1,200,000) due to increase in bank card processing fees.

Water Production

Total Full Time Equivalent Positions

MISSION

The mission of Production is to operate and maintain the Courtney Bend Water Treatment Plant so that up to 48 million gallons of water that meets or exceeds all federal and state standards can be pumped daily.

SIGNIFICANT BUDGET CHANGES

- The addition of 1.0 Plant Superintendent ($68,000) to aid in succession planning.

- SCADA server upgrade for security compliance ($49,100).

Water Transmission and Distribution

Total Full Time Equivalent Positions

MISSION

The mission of the Transmission and Distribution Division is to engineer, construct and maintain 761 miles of water main pipe so that water is distributed to the customers with consistent pressure and minimal loss of treated water.

SIGNIFICANT BUDGET CHANGES

- Replacement of twenty year old telehandler ($116,000).

Water Non-Departmental

Total Full Time Equivalent Positions

MISSION

Provides funding for City and department wide activities not attributable to one single water program.

SIGNIFICANT BUDGET CHANGES

- Other increases due to mailing and shipping charges ($10,000) and ERP charges ($550,000).

Water Capital Projects

Water Debt Service

Internal Service Funds

Total Full Time Equivalent Positions*

MISSION

Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other governmental units on a cost-reimbursed basis.

*All internal service fund employee headcount and salary are shown in the internal service fund pages for clarity on where the employees are budgeted and charged. In years prior to FY 2021-22, the headcount is reflected in the managing department.

Internal Service Funds

Central Garage (090)

Total Full Time Equivalent Positions

Central Garage is part of Municipal Services. This fund is used to account for costs of maintenance of the City's fleet of vehicles and mobile equipment and related charges to other departments.

ACCOMPLISHMENTS

- Established a fleet lease program.

SIGNIFICANT BUDGET CHANGES

- Addition of 1.0 Fleet Technician II, to support maintenance on police vehicles.

Internal Service Funds

Staywell Health Care (091)

Total Full Time Equivalent Positions

This fund is used to account for the costs of the City's self-insured healthcare plan.

SIGNIFICANT BUDGET CHANGES

- The salary and benefits budget reflects the City portion of the Health Savings Accounts.

Internal Service Funds

Workers' Compensation (092)

Total Full Time Equivalent Positions

This fund is used to account for the costs of the City's self-insured Worker's Compensation claims and administration plan. Workers' Compensation is part of Finance and Administration.

SIGNIFICANT BUDGET CHANGES

- Reduction in 50% of outstanding prior claims.

Internal Service Funds Risk Management (093)

Total Full Time Equivalent Positions

The mission of Risk Management is to manage the insurance and programs that safeguard the City's financial, human resource, and capital assets. Risk Management is part of Finance and Administration.

SIGNIFICANT BUDGET CHANGES

- Achieved lower renewal costs on property insurance by splitting utility and non-utility coverages.

Internal Service Funds

Enterprise Resource Planning (ERP) (095)

Total Full Time Equivalent Positions

This fund is used to account for the costs of the City's Enterprise Resource Planning (ERP) computer system. Enterprise Resource planning is part of Finance and Administration.

SIGNIFICANT BUDGET CHANGES

- ERP charges were spread across multiple objects in prior years, FY 2021-22 consolidated the charges.

- Conversion of 1.0 FTE from a professional services contractor to a full-time employee, with a net zero fiscal impact.

- Increase in professional services software support ($73,000) and software / maintenance costs ($20,000).

General Fund Non-Departmental

This cost center had traditionally been used for costs considered not to belong to a department. Beginning in FY19 most of these costs - primarily retiree health insurance and workers compensation insurance premiums - have been placed in the department budgets.

General Fund Debt Service

Description

This cost center had traditionally been used for costs considered not to belong to a department. Beginning in FY19 most of these costs - primarily retiree health insurance and workers compensation insurance premiums - have been placed in the department budgets.

April 1, 2021

Zachary C. Walker City Manager City of

Independence, Missouri

111 E Maple Ave

Independence, MO 64050

Mr. Walker,

The 2021-2027 Capital Improvements Program (CIP) is a six- year plan for prioritizing, constructing, maintaining, upgrading and replacing the City’s infrastructure and equipment . The CIP provides a link between the various master plans, the City’s comprehensive plan, and the annual budget. Additionally, it further implements the vision, goals and strategies of the Independence For All Strategic Plan and Imagine Independence 2040 Comprehensive Plan.

A presentation on the CIP took place at the Planning Commission meeting on Tuesday, March 23rd, 2021. The Planning Commission formally submits to you this six- year Capital Improvements Program with our recommendation of approval

The CIP sets forth proposed projects for constructing, maintaining, upgrading and replacing the City’s physical infrastructure and equipment necessary for continued operations and providing City services during the next six fiscal years beginning in July 2021 through June 2027 The CIP contains 128 identified projects with a total projected cost of $160.4 million, including 69 active projects that are either in construction or undergoing planning/design.

On behalf of the Planning Commission, I would like to thank the staff of all city departments for the collection and compilation of the information in the 2021-2027 Capital Improvements Program.

Respectfully submitted,

Cindy McClain, Chair City of Independence Planning Commission

Introduction

The Capital Improvements Program (CIP) is a major financial, public infrastructure and equipment planning tool for municipalities. The CIP is a long-range plan that identifies capital projects and equipment, provides a planning schedule, and identifies options to fund the projects and equipment. The development of a CIP provides information regarding planned public improvements and equipment with anticipated funding. The CIP provides a link between the various master plans, the City’s comprehensive plan, and the annual budget.

The Planning Commission’s role in the CIP process is to provide a recommendation of public improvements to the City Manager by April 1st of each fiscal year that further implements the vision, goals and strategies of the Independence For All Strategic Plan and Imagine Independence 2040 Comprehensive Plan.

The CIP sets forth proposed projects for constructing, maintaining, upgrading and replacing the City’s physical infrastructure and equipment necessary for continued operations and providing City services during the next six fiscal years beginning in July 2021 through June 2027.

Projects listed in the CIP report are not necessarily listed in priority order and are not to be construed as a promise to any person or group that it will be completed within a specific time frame. A CIP is not a static document, but rather, a fluid document that can be changed as the infrastructure requirements change, development occurs, and funding opportunities become available.

CIP items including the FY 2021-22 operating budget can be located at the conclusion of each departments' summary section.

Capital Improvement Project Defined

In developing a CIP, it is important to distinguish between operating and capital expenses. Generally, these items are defined based on their cost and frequency of occurrence. Operating items are those that represent ongoing operating expenses, such as maintenance, outside of onetime capital expenditures. Presented below are the definitions developed specifically for the City of Independence for capital expenses that should be included in the CIP budget:

 Any construction of a new public facility (e.g., a public building, a public street, water and sewer lines, parks, play field, or the like) or an addition to, or extension of, such a facility.

 A nonrecurring rehabilitation or replacement of existing public facilities, or major repair of all or a part of a public facility, provided that the cost is $100,000 or more.

 Purchase of major equipment of $100,000 or more (either one item or a number of items with a cumulative one-time purchase of $100,000 or over) and a useful life of 5 years or more.

 Planning, feasibility, engineering, or design studies and services immediately related to an individual capital improvement project.

Summary

The CIP contains 130 identified projects with a total projected cost of $184.3 million, including 72 active projects that are either in construction or undergoing planning/design. The category with the largest number of active projects in the next two years is the Municipal Services Department with 45 projects. For all projects, estimated FY 2021-22 expenditures total approximately $39.5 million and FY 2022-23 expenditures total approximately $37.6 million. The largest projects in FY 2021-22 include the 24 Hwy Complete Streets project and the Annual Pavement Preventative Maintenance Overlay program at $6,086,164 and $4,595,500, respectively.

Funding for CIP projects are derived from various sources including General Fund, Federal and State grants (CMAQ, STP and TAP), other debt, Power and Light Funds, Sales Tax (Park and Recreation, Public Safety, Stormwater, and Street) Funds, Sanitary Sewer Funds, Transient Guest Tax, and Water Fund. The largest funding sources in FY 2021-22 are the various sales taxes followed by the Power and Light fund.

FY 2021-22 Funding Sources

Fiscal Year 2021-22 Highlights

 Fire Department projects includes the annual pumper replacement program and the purchasing of new aerial apparatus.

 Police Department projects includes their vehicle and equipment replacement program.

 Parks and Recreation projects includes a Park Revitalization plan to repair site amenities including playgrounds, landscaping irrigation systems and shelters at various City Parks. This plan follows the Parks Master Plan where a key objective is to maintain what we have and make improvements to existing facilities. A Historical Site Rehab project includes funds to repair and maintain various City historical sites. Funds have been allocated to stabilize the foundation wall to the National Frontier Trails Museum to utilize the second floor. Funds are also included to replace vehicles and equipment used for park maintenance.

 Independence Power and Light projects include a Traffic Controller Upgrade project to replace the remaining twenty sites that have outdated traffic controllers. The second phase purchase of Motorola APX Radios have been included for better public safety. The Transmission Pole Replacement Program will replace end of life equipment and the Fiber Optic Business Plan project will create a new fiber optic business plan for the deployment of broadband. The Transmission & Distribution Emergency Maintenance program will provide funds to maintain a safe and reliable electrical transmission and distribution system. The Fiber Optic Network program will continue to expand the existing fiber optic network to unserved City locations to provide a reduction in communications cost and increase network reliability.

 The Municipal Services Department, which now encompasses the storm and sewer projects, includes the 24 Highway Complete Streets project that will improve roadway safety from River Blvd to 291 Hwy and provide a continuous center turn lane for safety, curb and gutter improvements, and a ten-foot wide shared pedestrian and bike path. The Truman Connected project with will create a multimodal spine along western Independence that connects transportation users of all types. Other projects include the annual Pavement Preventative Maintenance and overlay program, an annual Traffic Signal Structure Replacement program, Operation Green Light traffic controller upgrades, and the 31st Street Sidewalks to Cassel Park Elementary project.

 Storm projects include Leslie to Crane & Herford Phase 1 & 2 project along with the Rockwood Storm Drainage improvements. The Crackerneck Creek Slope Rehabilitation project will repair slope failures along various tributaries of the Crackerneck Creek.

 Sewer projects include the upper Adair Interceptor project that will re-route sanitary sewer flows crossing I-70 from areas southwest of I-70 and Noland Road to reduce capacity issues and reduce the risk of pipe failures. The primary Slug Pump Facility Rehab project will replace corroded and out of service valves and piping along with the settling basin gear box and ventilation and electrical systems. The Clarifier Rehabilitation project will include replacement of clarifier weirs along with painting and structural repairs to the rake arms.

 Water projects include the Lime Silo that will provide additional lime slaking equipment to help ensure that the ground water lime softening process is not interrupted. The Courtney Bend Plant Emergency Generator project will increase the reliability of the City’s water source in the event of electrical power outages. The generator may also be used to help reduce the amount of funds spent on electricity. The Wellfield Electrical Improvements project will upgrade the Courtney Bend water plant wellfield overhead wiring that was built in the 1950’s to provide for a more reliable and safe power supply.

An overview of each Department’s projects and funding sources is in the Projects by Department report. A detailed overview of each project follows that report. These overviews provide information for projects starting in FY 2021-22 out to FY 2026-27, including project name, project type, sponsoring department, and amount and years of expenditures.

To see the full CIP document, including project details, please go to: https://www.ci.independence.mo.us/comdev/CIP

City of Independence, Missouri

Capital Improvement Program

'21/'22'26/'27 thru

PROJECTS BY DEPARTMENT

Project #Priority Department

Project #Priority Department

Project #Priority Department

City of Independence, Missouri

Capital Improvement Program

'21/'22 thru '26/'27

Budget Survey Summary

Background:

On May 10th, 2021, the City Manager presented the Proposed Budget for FY 2021-22. A survey was posted with a link to the presentation on all social media sites (Facebook, Instagram, Twitter), and the city website to encourage citizen feedback. The survey was open May 19 through June 2, 2021.

Summary:

The survey regarding the proposed budget was completed by 218 participants. The survey had six questions, including one open-ended question, and took an average of six minutes to complete.

Budget priorities were ranked in this order: accurately budget for all known expenditures (49.6%), conservatively estimate revenues (27%), make strategic use of one-time revenues, and address the adopted strategic plan.

Options available to select from in full:

1. Accurately budget for all known expenditures

2. Conservatively estimate revenues

3. Make strategic use of one-time revenues to further navigate economic uncertainties

4. Address the adopted strategic priorities for 2021-22 outlined in Independence for All

Participants ranked reducing crime and disorder as the highest priority in the Independence for All Strategic Plan, with 60.2% citing this as their top priority.

Options available to select from in full:

1. Reduce Crime and Disorder

2. Stabilize and Revitalize Neighborhoods

3. Reduce Blight

4. Enhance Public Health

5. Communicate More Effectively Internally and Externally

When asked how likely they are to purchase goods or items from an online store or service, 138 were very likely 42 were passive / neutral, and 37 were unlikely to make online purchases.

Looking forward, participants selected attracting and retaining industry that meets market demand and provides employment opportunities for Independence residents as the most appealing issue for City Council in the next 12-18 months. At a close second was evaluate citizen demand for services and strategically address service level models. The least appealing option was pursuing other revenue growth opportunities through ballot initiatives.

When asked to select the top three items for emphasis in the next 24 months, participants selected maintenance of city streets, bridges, curbs, and sidewalks; increase police presences; and improve the appearance of key corridors.

Options available to select from in full:

- Fund a transit model to support commuter services to employment centers outside of the city

- Fund transit services for transportation within the city.

- Maintain city streets, bridges, curbs, and sidewalks

- Increase police presence throughout the city

- Increase fire protection services

- Improve the appearance of key corridors and city right-of-way

The final question was an open-ended question that allowed participants to provide additional feedback. 84 of the 218 participants chose to answer this question. Most responses (25%) indicated a desire to increase police resources and staffing. The next two largest responds areas were Economic revitalization, and a closer review of IPL, and were indicated in 7% responses. Other topics mentioned repeatedly in responses included concerns regarding climate change / environmental impact, code enforcement, increasing homeless services, increasing Tourism, cleanup of the cemetery, and generalized city cleanup / blight.

ARP Categories

Costs to respond to the public health emergency with respect to the COVID-19 negative economic impacts

The provision of government services to the extent of the reduction in revenue” of the entity “due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year"

FY 2021-22 Proposed Budget

Long-Term Obligations and Commitments

Audited amounts as of June 30, 2020

City Debt Obligations

Details of Debt found within each Series’ Final Official Statement and can be located at the City’s Investors’ Relations site:

https://www.indepmobonds.com/independence-mo-investor-relationsmo/documents/downloads/i6071

Long-term Debt Obligations

$825,807,168

*Snip of statement of Net Position on page 22 of June 30, 2020 Audited Financial Statements in the City’s Comprehensive Annual Financial Report (CAFR)

Long-Term Debt- Governmental Activities

June 30, 2020

*Snip of summary of changes in long-term debt of the City in Footnote 7 Long-Term Obligations on page 63 of June 30, 2020 Audited Financial Statements in the City’s Comprehensive Annual Financial Report (CAFR)

Summary of Independence Governmental Loans

June 30, 2020

Summary of Independence Tax Increment Fund Debt

June 30, 2020

*After June 30, 2021, the City entered into leases for radio equipment for $1,192,500 to be paid from General Fund and $40,237 for Wheel Loader to be paid from Water Pollution Control.

Summary of Independence Electric Fund Debt

June 30, 2020

*Series 2010B was paid off on March 12, 2021

Summary of Independence Water Fund Debt

June 30, 2020

Summary of Independence Sanitary Sewer Fund Debt

June 30, 2020

PurposeofBonds\SummaryofProjects

FinancethecostsofcertainprojectsfortheSewerSystem;FundadebtservicereservefortheBonds;Paythecostsof issuanceoftheBonds

SanitarySewerLines,EvaluationSurvey,TrenchlessTechnology,Mainreplacements,Neighborhoodprojects,sewerextensions,SteamGeneratorreplacement,Treatmentplantequipmentreplacement

upgrade

FinancethecostsofcertainprojectsfortheSewerSystem;FundadebtservicereservefortheBonds;Paythecostsof issuanceoftheBonds

PhaseIofSystemCapacityImprovements;disinfectionimprovements/nitrificationimprovements;RockCreek-SugarCreekpumpstationandforcemainimprovement

FinancethecostsofcertainprojectsfortheSewerSystem;FundadebtservicereservefortheBonds;Paythecostsof issuanceoftheBonds

PhaseIIofSystemCapacityImprovements;disinfectionimprovements/nitrificationimprovements;RockCreek-SugarCreekpumpstationandforcemainimprovement

Summary of Independence Event Center Debt

June 30, 2020

A note about Bond Premium (Discounts)*

• When bonds were originally issued, if the underwriter paid more proceeds to the City in order to buy bonds at a higher than market interest rate it is called a Premium.

• Conversely, the City may want to “buy down” the interest rate. This additional cost to the City is called a discount.

• These two activities allows the underwriter to market the debt easier and the City receives proceeds of funds upfront to use for projects (premium) or pay an overall lower interest rate on debt (discount).

• The outstanding Premium amount reflects the additional cost the City pays in higher interest rates for the additional proceeds received when the bond was originally issued.

• The outstanding Discount amount reflects the lower amount of proceeds received from the original sale of bonds

• Neither amount is an additional amount owed or to be received. Rather they are recorded to inform the readers of finance statements that the interest rate obligated was higher or lower than market when issued.

*This and additional discussion on Bond Premiums and discounts can be found in Footnote 1(j); Summary of Significant Accounting Policies, Bond Premiums/Discounts, and Issuance Costs on page 41 of the June 30, 2020 CAFR

A. Budget Preparation and Submission

The fiscal year of the City shall start on July 1 and end on June 30.

1. City Charter, Section 8.2 Budget: Preparation and submission. At least forty- five (45) days before the beginning of the fiscal year, the City Manager shall prepare and submit to the Council a proposed budget for the next fiscal year, which shall contain detailed estimates of anticipated revenues including any resources available from the current fiscal year, and proposed expenditures for the year, and an explanatory message. The budget shall include the general fund and at least all other regular operating funds which are deemed to require formal annual budgeting, and shall be in such form as the City Manager deems desirable or as the Council may require. The total of the proposed expenditures from any fund shall not exceed the total of the anticipated resources thereof. The budget and budget message shall be public records in the office of the City Clerk, and shall be open to public inspection. Copies of the budget; and budget message shall be made for distribution to persons on request.

2. City Charter, Section 8.3 Comparison of anticipation revenues and proposed expenditures with prior years.

(1) In parallel columns opposite the several items of anticipated revenues in the budget, there shall be placed the amount of revenue during the last preceding fiscal year, and the amount of revenue up to the time of preparing the budget plus anticipated revenue for the remainder of the current fiscal year estimated as accurately as may be.

(2) In parallel columns opposite the several items of proposed expenditures in the budget, there shall be placed the amount of each such item actually expended during the last preceding fiscal year, and the amount of each such item actually expended up to the time of preparing the budget plus the expenditures for the remainder of the current fiscal year estimated as accurately as may be.

B. Public Hearing

1. City Charter, Section 8.4 Budget: Public hearing. The Council shall hold a public hearing on the proposed budget at least one (1) week after a notice of the time of the hearing has been published in a newspaper of general circulation within the City; and any interested person shall have an opportunity to be heard. The Council may continue the hearing at later meetings without further notice.

C. Amendments, Adoption and Appropriations

1. City Charter, Section 8.5 Budget: Amendment, adoption, appropriations. The Council may insert, strike out, increase, or decrease items in the budget, and otherwise amend it, but may not increase any estimate of anticipated revenues therein unless the City Manager certifies that, in the City Manager's judgment, the amount estimated will be revenue of the fiscal year. The Council, not later than the twentyseventh (27th) day of the last month of the fiscal year, shall adopt the budget and make the appropriations for the next fiscal year. If the Council fails to adopt the

budget and make the appropriations on or before that day, the budget as submitted or as amended, shall go into effect and be deemed to have been finally adopted by the Council; and the proposed expenditures therein shall become the appropriations for the next fiscal year. The appropriations, when made by the Council by a general appropriation ordinance separate from the budget document, need not be in as great detail as the proposed expenditures in the budget. Appropriations from a fund shall never exceed the anticipated resources thereof in the budget as adopted.

D. Transfer of Appropriation Balances and Amendments

1. City Charter, Section 8.6 Budget: Transfer of appropriation balances, amendment After the appropriations are made, and except as the Council by ordinance may provide otherwise, the City Manager may transfer unencumbered appropriation balances or parts thereof from any item of appropriation within a department, office, or agency to any other items of appropriation, including new items within the same department, office, or agency; and upon recommendation by the City Manager, the Council may transfer unencumbered appropriation balances or parts thereof from anyitem of appropriation , including an item for contingencies, in a fund to any other item of appropriation, including new items, in the fund.

Upon recommendation by the City Manager, the Council by ordinance may also amend the budget as adopted by changing the estimates of anticipated revenues or proposed expenditures of a fund and otherwise; and may increase or decrease the total appropriations from a fund when a change in revenues or conditions justify such action; but total appropriations from any fund shall never exceed the anticipated revenues thereof in the budget as adopted or as amended, as the case may be. The Council shall not increase any estimate of anticipated revenues in the budget unless the City Manager certifies that, in the City Manager's judgment, the amount estimated will be revenue of the fiscal year.

E. Fund Types

1. Governmental Funds - are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City's expendable financial resources and the related liabilities (other than those in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position. The following are the City's governmental fund types for which annual operating budgets are prepared:

a. The General Fund is the principal operating fund of the City and accounts for all financial transactions not accounted for in other funds. The general operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are financed through revenues received by the General Fund.

b. Special Revenue Funds are used to account for revenues derived from specific taxes, governmental grants or other revenue sources which are designated to finance particular functions or activities of theCity.

2. Proprietary Funds - are used to account for the City's on-going organizations and activities which are similar to those often found in the private sector. The measurement focus is upon determination of net income. The following are the City's proprietary fund types:

a. Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or where the periodic determination of net income or loss is deemed appropriate.

3. Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis.

F. Basis of Accounting/Measurement Focus for Budgets

Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and recorded in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. Measurement focus determines what actually is being recorded, not when. The measurement focus for governmental funds is based upon expenditures - decreases in net financial resources. The measurement focus for proprietary funds is based upon expenses - decreases in net total assets. The principal difference between expenditures and expenses is that with expenditures, the primary concern is the flow of resources, however with expenses; the primary concern is the substance of transactions and events which may not specifically relate to the actual flow of resources.

As already indicated, the basis of accounting relates to when transactions are recorded, not what is actually being recorded. The three different types of accounting basis are 1) Cash,

2) Modified Accrual, and 3) Accrual. The latter two are recognized as Generally Accepted Accounting Principles (GAAP); the Cash basis is not.

The modified accrual basis of accounting is utilized by all governmental fund types and expendable trust funds. Under the modified accrual basis of accounting, revenues are recorded as collected unless susceptible to accrual, i.e., amounts measurable and available to finance the City's operations or of a material amount and not received at the normal time of receipt. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Significant revenues which are considered susceptible to accrual include real estate taxes, sales taxes, utility franchise taxes, interest, and certain State and Federal grants and entitlements. Expenditures, other than interest on long-term debt, are recorded when the liability is incurred.

In applying the susceptible to accrual concept to intergovernmental revenues (i.e. grants), the legal and contractual requirements of the individual program is used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the City; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted as to purposes or

expenditures and nearly irrevocable, i.e., revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if they meet the available and measurable criteria.

Real estate taxes levied and expected to be collected within sixty days after the fiscal year- end are considered available and, therefore, are recognized as revenues.

Licenses and permits, fines and forfeitures, charges for services, and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received.

The accrual basis of accounting is utilized by the proprietary and nonexpendable trust fund types. Under this basis of accounting, revenues are recognized when earned (including unbilled revenue) and expenses are recorded when liabilities are incurred.

G. Encumbrances

The City's policy is to prepare the annual operating budget on a basis which includes encumbrances astheequivalentofexpenditures inordertoassureeffective budgetary control and accountability and to facilitate effective cash planning and control. Encumbrance accounting is where purchase orders, contracts, and other commitments for theexpenditures of funds are recorded in order to reserve that portion of the applicable appropriation.

Encumbrances outstanding at year-end represent the estimated amount of the expenditures ultimately to result if unperformed contracts in process at year-end are completed. Encumbrances outstanding at year-end are reported in the Comprehensive Annual Financial Report (CAFR) as reservations of fund balances because they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are re-appropriated in the following fiscal year in order to provide authority to complete these transactions.

H. Difference between Budget Basis and Financial Reporting Basis

The City’s Comprehensive Annual Financial Report (CAFR) reports on the status of the City’s finances in accordance with the GAAP basis of accounting. In most cases this is also the same basis of accounting as used in preparing the budget. Exceptions to the basis of accounting used for financial reports and in preparing the budget are listed below:

1. Governmental Fund Types - All governmental fund types use the same basis of accounting for reporting and budgeting with the exception that the budget also recognizes encumbrance accounting. In the CAFR, the “Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Funds” presents revenues and expenditures in accordance with the GAAP basis of accounting. The “Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budget Basis)” in the CAFR presents the same information, however it also includes the recognition of encumbrances. This later statement provides a reconciliation of the presented data to the GAAP basisstatement.

2. Proprietary Fund Types - All proprietary fund types use the same basis of accounting for reporting and budgeting with the exception of “non-cash” expenses and disbursements that affect balance sheet accounts. “Non-cash” expenses are included in the financial reports but not in the budget. An example of this type of expense would be depreciation where an expense is recorded but a cash disbursement does not take place. Balance sheet account disbursements are items that are included in the budget as expenditures, however they do not affect the “Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types and Nonexpendable Trust Funds” (i.e. the operating statement) in theCAFR.

An example of these types of items would be inventory purchases, debt principal payments, and capitalized labor and material costs.

Financial Polices, Adopted by Council Resolution 17-729

Statement of Purpose

The City of Independence has an important responsibility to our residents to carefully account for public funds, manage municipal finances wisely, and to develop a plan to adequately fund services and facilities desired and needed by the public. The financial integrity of our city government is of utmost importance and the codification of a set of financial policies is a key element in maintaining this integrity. The formalization of a set or financial policies for the City is consistent with the Council’s adopted goal of ensuring City finances are stable and sustainable through control of long-term costs, optimization of resources, long-range financial planning, and sound decision-making.

Written and adopted financial policies have many benefits, such as assisting the City Council and City Manager in providing the financial management of the City, saving time and energy when discussing financial matters, engendering public confidence, and providing continuity over time as City Council and staff members change. While these policies will periodically be reviewed and amended, they will provide the basic foundation and framework for many of the issues and decisions facing the City today and in the future. They will promote sound financial management and assist in the City's stability, efficiency and effectiveness.

In the past, the City of Independence has developed a variety of different types of financial policies, many of which have been maintained on a somewhat informal basis. These policies can be found in a variety of different locations, including Council Resolutions, Ordinances, Budget Documents, Capital Improvements Programs, etc. The financial policies listed below will establish consistent standards for the review of existing practices as well as the development of future financial plans

The following policies are divided into seven major categories: General, Fund Balances, Debt, Financial Sustainability, Long Range Financial Planning, Monitoring – Accountability – Control, and Investment of Funds.

A. General

1. Compliance with Applicable Laws: The City shall comply with all applicable federal and state laws, the City Charter, and the Code of Ordinances with respect to the interpretation and application of these policies.

2. Compliance with Governmental Standards: Policies and practices in financial reporting shall be consistent with Governmental Accounting Standards Board (GASB) standards.

B. Fund Balances

1. Minimum Unrestricted and Unassigned Fund Balance & Working Capital: The City of Independence has determined it a sound financial practice to maintain adequate fund balances and working capital. Accordingly, the City will endeavor to maintain a minimum Unrestricted and Unassigned Fund Balance in the General Fund equal to 16% of annual operating revenues less one-time funds like grants or transfers. The City has adopted separate a risk based methodology for Fund Balances in Enterprise Funds.

For Special Revenue Funds that are primarily designated for capital purposes and support limited personnel and ongoing operations, the City will endeavor to maintain an Unassigned Fund Balance of

5% of annual revenues.

For Special Revenue Funds that support personnel and ongoing operations, as well as capital expenditures, the City will endeavor to maintain an Unassigned Fund Balance between 5% and 16% of annual revenues.

2. Use of Fund Balance: Circumstances may arise which warrant the use of Unassigned or Unrestricted Fund Balances and working capital balances. These include revenue shortfalls, unanticipated cost increases, emergencies, grant matching, early debt retirement, major projects, and unexpected expenditures beyond those created by only natural disasters. In such cases, any expenditure from the Unassigned or Unrestricted Fund Balance must be approved by the Council. The rationale for the expenditure must be documented as part of Council action. Any unrestricted and unassigned funds in excess of target minimums may be expended to fund non- recurring expenditures.

3. Recovery Plan: If, based on staff’s analysis and forecasting, the target level of Unassigned Fund Balance reserve is not being met or is unlikely to be met at some point within a five-year time horizon, then during the annual budget process, a plan to replenish the Unassigned Fund Balance reserve should be established.

C. Debt

1. Evaluation Criteria: The following criteria will be used to evaluate pay-as-you-go versus debt financing in funding capital improvements and equipment:

a. Factors which favor pay-as-you-go financing include the following:

(1) Current revenues and fund balances are available;

(2) Phasing-in of projects is feasible;

(3) Additional debt levels would adversely affect the City's credit rating;

(4) Market conditions are unfavorable or suggest difficulties in marketing new debt.

b. Factors which favor debt financing include the following:

(1) Revenues available for debt issues are considered sufficient and reliable so that long- term financing can be marketed with an appropriate credit rating, which can be maintained;

(2) Market conditions present favorable interest rates and demand for City debt financing;

(3) A project is mandated by state or federal government and current revenues or fund balances are insufficient to pay project costs;

(4) A project is immediately required to meet or relieve capacity needs;

(5) The life of the project or asset financed is five years or longer;

(6) The life of the project or asset is less than five years, but short-term financing that does not exceed the useful life of the project or asset is feasible;

(7) Cost savings can be achieved by completing improvements as a single large project rather than as a multi-year series of pay-as-you-go smaller projects.

2. Neighborhood Improvement District (NID) Debt: NID Debt may be issued provided assessment payments are adequate to cover 100% of debt service and financing costs. The City will simultaneously apply any related economic development policies to evaluate

the feasibility of the development project before issuing debt.

3. Early Debt Retirement: The City will endeavor when possible to retire bonds and other similar instruments early when sufficient revenues are accumulated, and to refinance debt when a Net Present Value Savings of at least 3% exists.

4. Debt Term to Match Useful Life: Debt shall only be issued when the term of financing does not exceed the useful life of the asset for which the debt was issued.

5. City Debt Schedule: To ensure that long term debt obligations are sufficiently funded and accounted for, it is the City’s policy to develop a comprehensive Debt Schedule which matches specific revenues to specific debt obligations for each year of the entire term of each source of debt.

6. Debt Coverage & Solvency: To demonstrate solvency, ensure sufficient revenues exist to retire debt issued, and maintain favorable bond ratings, the City will endeavor to maintain a Debt Service Coverage Ratio (net operating income (revenue minus operating expenses excluding transfers) divided by total debt service payment) of at least 1.2.

7. Lease Purchase Financing: The City will lease-purchase items only if lease rates are less than the rate attained from investment return. In no event shall the City lease-purchase items with a useful life less than the term of the lease.

8. Financial Advisor: To provide advice on the issuance of debt and related matters, the City will employ the services of an outside financial advisor. The financial advisor will assist the City in evaluating when debt should be sold through a competitive versus negotiated sale. Such factors in determining the form of sale include, but are not limited to, the complexity of the issue; the need for specialized expertise; maximizing savings in time or money; or circumstances in which market conditions or City credit are unusually volatile or uncertain. It is the City’s policy that said financial advisor cannot also serve as the underwriter of municipal securities.

9. Statutory Limitations: The Missouri Constitution permits a city, by vote of two-thirds of the voting electorate, to incur general obligation indebtedness for city purposes not to exceed 10% of the assessed value of taxable tangible property. The City may issue additional debt not to exceed 10% of assessed valuation (20% total) for street and sewer improvements, or purchasing or constructing water or electric utility plants.

D. Financial Sustainability

1. Financial Sustainability: To ensure financial sustainability in City programs and operations, it shall be the City’s policy to apply one-time revenues to fund nonrecurring expenditures. Similarly, personnel costs and on-going programs and operations will be funded with on-going, sustainable sources of revenue.

2. Priority Funding to Maintain Assets: In preparing the annual budget, priority shall be given to providing adequate funding for maintenance, upkeep, and scheduled replacement of physical assets. The City will endeavor to establish funding levels to replace assets on a life-cycle basis. Enterprise Fund operations will endeavor to reflect, in budget appropriations, reinvestment for the depreciation of assets.

E. Long Range Financial Planning

1. 5-Year Capital Improvement Plan: The City will annually prepare a capital improvement plan that identifies its priorities and timeframe for undertaking capital projects and provides a financing plan for those projects. In order to ensure that proposed capital

projects, their timing and their financing best meet the City’s policies and plans, the capital improvement plan will:

a. Project at least five years into the future;

b. Take into account overall affordability in terms of both capital and operating costs; and

c. Include a process that allows opportunity for stakeholder involvement in prioritizing projects and review.

2. Long Range Planning of Financial Obligations: The City will annually prepare a financial plan to assess the long-term financial implications of current and proposed policies, programs, and assumptions in order to develop appropriate strategies to achieve its goals. The financial plan will consist of:

a. An analysis of financial trends;

b. An assessment of problems or opportunities facing the City;

c. A five year forecast of revenues and expenditures;

d. A review of cash flow requirements and appropriate fund balances to determine whether modifications are appropriate for the Fund Balance Reserve Policy; and

e. Any further analyses as may be appropriate.

F. Monitoring – Accountability - Control

1. Transfer of Funds: Department Directors, with the consent of the City Manager or his/her designee, may transfer funds between line items within the total budget appropriation of a particular budget in a fund. The City Manager may transfer unencumbered appropriation balances or parts thereof from any item of appropriation within a fund, department, office or agency to any other items of appropriation, including new items, within the same fund or department.

2. Reports: It is the City’s policy to produce monthly reports as a means to verify that City departments are operating within the amount of appropriation, to compare actual income and expenses to budget estimates, to update year-end revenues and expense projections, and to develop, as soon as possible, strategies to meet financial challenges. Monthly reports to the City Manager from the Finance Department will also be provided to illustrate overall financial position of the City. A comprehensive annual financial report, as well as an annual audit, will also be produced.

3. Spending: No expenditures may be made, or funds encumbered, unless consistent with adopted purchasing policies and expenditure procedures.

4. Service Delivery Analysis: The City will seek to optimize the efficiency and effectiveness of its services to reduce costs and improve service quality. Alternative means of service delivery will be evaluated to ensure that quality services are provided to our residents at the most competitive and economical cost. Department directors, in cooperation with the City Manager's office, will identify all activities that could be provided by another source and review options/alternatives to current service delivery methods. The review of service delivery alternatives and the need for the service will be performed annually or on an "opportunity" basis.

5. Grant Acceptance: The City shall actively pursue federal, state and other grant opportunities when deemed appropriate. Before accepting any grant the City shall thoroughly consider all implications related to costs associated with complying with the terms of the grant agreement and the ongoing obligations that will be required in connection with the acceptance of the grant. In the event of reduced grant funding, City resources may be substituted only after all program priorities and alternatives are

considered during the budget process. The City Manager will establish supplemental administrative policies to ensure appropriate coordination of grant applications and ensure grant compliance.

6. Employee Staffing Levels: The addition of new positions will only be requested after service needs have been thoroughly examined and it is substantiated that the additional staffing will result in increased revenue, enhanced operating efficiencies, or the achievement of specific objectives approved by the Council. To the extent feasible, personnel cost reductions will be achieved through attrition and reassignment

7. Technology & Expertise: To ensure, to the greatest extent possible, accuracy in financial reporting, it is the City’s policy to invest in necessary technology. It is also the City’s policy to invest in training to develop staff expertise in financial reporting systems.

G. Investment of Funds

1. The investment of City funds will be handled in accordance with the City’s Statement of Investment Policy and Section 3.34(6) of the Charter of the City of Independence. Investments shall be undertaken in a manner that does not conflict with the Missouri Constitution Article IV, Section 5 on permitted investments or Section 30.270 of the Missouri Revised Statutes on permitted collateral.

2. Safety of Principal: It is the City’s policy that the foremost consideration in the City’s investment strategy should be safety of the principal invested.

3. Liquidity: It is the City’s policy that the investment portfolio remain at all times sufficiently liquid to meet all operating requirements.

4. Return: It is the City’s policy that the investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety of principal and liquidity objectives described above.

UTILITY CASH RESERVE POLICY FOR ELECTRIC

Purpose

To help ensure financial stability, timely completion of capital improvements and enable the utility to meet requirements for large, unexpected expenditures, a targeted cash reserve policy should be established. The cash reserve policy establishes a target as well as a bandwidth amount of cash the utility should keep in reserve to address the operational and financial risks of the utility. Actual cash reserves may vary substantially above the minimum and is dependent on the life cycle of assets, future capital plan, rate setting polices, and debt policies.

Funds available for the Cash reserve target shall not include funds that are legally required for debt service or funds available but designated for other purposes. Those designations include but are not limited to purposes such as collateral posting requirements, customer deposits and advance payments as well as reserves established through power purchase contracts.

Methodology

The methodology outlined in this policy is based on certain assumptions related to:

• Revenue Risk

• Expense Risk

• Working Capital

• Capital Reserve

After the reserve minimum is determined, management should consider the target “in total” and not each individual category. Percentage risk factors for Revenue, Expense, Working Capital, and Capital Reserve will be subject to City Council review and approval as part of the annual budget process [Initial recommended risk factor percentages are included below forillustrative purposes for the current fiscal year]

Calculation and Risk Factors Used Revenue Risk

General Sales Decrease Economic Recession

Purpose: Cover fixed costs due to large scale economic shock similar to the Great Recession of 20082012. The fixed costs represent the total amount of operating expenses historically assumed or experienced to be fixed and add debt service, the necessary 10% coverage of debt service as well as the PILOT to the City.

[The cash reserve will include 6.0% of fixed costs over a 12-month period]

Loss of Large (Top12) Customer

Purpose: Cover fixed costs due to loss of one of the Top 12 Customers. Can also represent loss of load due to distributed generation or renewable mandate

[The cash reserve will include 2.0% of fixed costs over a 12-month period]

Off System Sales

Purpose: Address risk of loss in the “profit” of off-system sales

[The cash reserve will include up to 10% of adjusted margin for power marketing revenues.]

Interest Income

Purpose: Address risk of loss of interest income on invested cash.

[The cash reserve will include up to 100 basis points (1%) of interest income from short- term investments over a 12-month period]

Expense Risk

Unplanned Outage – Market Exposure

Purpose: Address market risk in Nebraska City Unit 2 has an unplanned outage

[The cash reserve will include an assumed outage of 90 days at a capacity factor of 90% and an energy shortfall that IPL can hedge by 50%. The market price of power is assumed to be weekday peak]

Planned Outage – Market Exposure

Purpose: Address market risk in Nebraska City Unit 2 has planned outage

[The cash reserve will include an assumed outage of 30 days at a capacity factor of 90% and an energy shortfall that IPL can hedge by 50%. The market price of power is assumed to be weekday peak]

Fuel (Natural Gas) Exposure

Purpose: Address risk for natural gas purchases

[The cash reserve will include assumption that IPL annually needs 1.5 million MMBTu of natural gas and the market price is higher than the budgeted amount by $1.74 per MMBtu (representing the historical standard deviation in the natural gas market)]

Power Purchases and Capacity Expense

Purpose: Address market risk for power and capacity purchases

[The cash reserve will include an assumption that IPL needs 1.7 million MWhs annually, that 50% of this need is hedged with long term agreements and the price for the remaining needs is at the “Weekday Off Peak” rate]

Renewable Energy Expense

Purpose: Address risk that wind and solar resources have higher capacity factors

[The cash reserve will include an assumption of an assumed wind energy capacity factor of 40% at $20 per MWh cost differential for 12-months]

Working Capital

Purpose: Represents a level of cash on hand to address the billing cycle (up to 60 days to convert MWhs delivered to an account receivable to cash) and uncertainty

[The cash reserve will include up to an assumption of 90 days of working capital]

Capital Reserve

Purpose: Represents a level of cash on hand to allow for the flexible execution of both routine an

unexpected capital projects

[The cash reserve will include up to the average annual deprecation levels for previous six years]

Targeted Cash Reserve Calculation

The targeted cash reserve calculation considers the risk “in total” and not each individual category.

If certain events occur that results in cash reserves falling below the targeted cash reserve levels, Manager should make recommendations to the City Council to restore cash reserves to the targeted levels over the subsequent three years. These actions may include a number of options:

• rate adjustments

• cost reductions

• issuance of bonds to fund capital improvement programs rather than the use of“PayGo” funds on hand

• modification of the assumptions used to determine the cash reserve levels

It is important to emphasize this is a recommended targeted cash reserve. Actual cash reserves may vary substantially above the target and is dependent of the life cycle of assets, future capital plan, rate setting policies, and debt policies. The cash reserve calculation should be updated annually as part of the budget process.

UTILITY CASH RESERVE POLICY FOR WATER

Purpose

To help ensure financial stability, timely completion of capital improvements and enable the utility to meet requirements for large, unexpected expenditures, a targeted cash reserve policy should be established. The cash reserve policy establishes a target as well as a bandwidth amount of cash the utility should keep in reserve to address the operational and financial risks of the utility. Actual cash reserves may vary substantially above the minimum and is dependent on the life cycle of assets, future capital plan, rate setting polices, and debt policies.

Funds available for the Cash reserve target shall not include funds that are legally required for debt service or funds available but designated for other purposes.

Methodology

The methodology outlined in this policy is based on certain assumptions related to:

1. Revenue Risk

2. Expense Risk

3. Working Capital

4. Capital Reserve

After the reserve minimum is determined, management should consider the target “in total” and not each individual category. Percentage risk factors for Revenue, Expense, Working Capital, and Capital Reserve will be subject to City Council review and approval as part of the annual budget process [Initial recommended risk factor percentages are included below for illustrative purposes for the current fiscal year]

Calculation and Risk Factors Used

Revenue Risk

General Sales Decrease Economic Recession

Purpose: Cover fixed costs due to large scale economic shock similar to the Great Recession of 20082012. The fixed costs represent the total amount of operating expenses historically assumed or experienced to be fixed and add debt service, the necessary 10% coverage of debt service as well as the PILOT to the City.

[The cash reserve will include 8.0% of fixed costs over a 12-month period]

Loss of Large Wholesale Customer

Purpose: Cover fixed costs due to the loss of one of the wholesale customers and also represents loss of sales due to conservation efforts.

[The cash reserve will include 5.0% of fixed costs over a 12-month period]

Loss of Large Commercial Customer

Purpose: Cover fixed costs due to the loss of one of the larger customers of the department. [The cash reserve will include 0.1% of fixed costs over a 12-month period]

Loss of Sales for Resale and Other Revenue

Purpose: There is a profit margin associated with resale sales and this profit can subsidize the operations of the utility.

[The cash reserve will include an assumed 10% reduction in profit margin over a 12-month period]

Interest Income

Purpose: Address risk of loss of interest income on invested cash.

[The cash reserve will include up to 100 basis points (1%) of interest income from short-term investments over a 12-month period]

Expense Risk

Power and Pumping

Purpose: Address market risk of electric power needed by the Department. Electric power is a commodity and subject to market and seasonal risks.

[The cash reserve will include a $10 per MWh standard deviation on Annual MWh over a 12month period]

Other expenses – including Chemicals

Purpose: Address inflationary risk of operating expenses incurred by the department.

[The cash reserve will include a 1% inflation rate of operating expenses over a 6-month period]

Working Capital

Purpose: Represents a level of cash on hand to address the billing cycle (up to 60 days to convert water treatment and delivery costs to an account receivable to cash).

[The cash reserve will include up to an assumption of 90 days of working capital]

Capital Reserve

Purpose: Represents a level of cash on hand to allow for the flexible execution of both routine and unexpected capital projects.

[The cash reserve will include up to the average annual deprecation levels]

Targeted Cash Reserve Calculation

The targeted cash reserve calculation considers the risk “in total” and not each individual category. The recommended level is $15.3 million.

If certain events occur that results in cash reserves falling below the targeted cash reserve levels, Manager should make recommendations to the City Council to restore cash reserves to the targeted levels over the subsequent three years. These actions may include a number of options:

• rate adjustments

• cost reductions

• issuance of bonds to fund capital improvement programs rather than the use of “PayGo”

• funds on hand

• modification of the assumptions used to determine the cash reserve levels

It is important to emphasize this is a recommended targeted cash reserve. Actual cash reserves may vary substantially above the target and is dependent of the life cycle of assets, future capital plan, rate setting policies, and debt policies. The cash reserve calculation should be updated annually as part of the budget process.

UTILITY CASH RESERVE POLICY FOR WATER POLLUTION CONTROL (SANITARY SEWER)

Purpose

To help ensure financial stability, timely completion of capital improvements and enable the utility to meet requirements for large unexpected expenditures, a targeted cash reserve policy should be established. The cash reserve policy establishes a target as well as a bandwidth amount of cash the utility should keep in reserve to address the operational and financial risks of the utility Actual cash reserves may vary substantially above the minimum and is dependent on the life cycle of assets, future capital plan, rate setting polices, and debt policies.

Funds available for the Cash reserve target shall not include funds that are legally required for debt service or funds available but designated for other purposes.

Methodology

The methodology outlined in this policy is based on certain assumptions related to:

1. Revenue Risk

2. Expense Risk

3. Working Capital

4. Capital Reserve

After the reserve minimum is determined, management should consider the target “in total” and not each individual category. Percentage risk factors for Revenue, Expense, Working Capital, and Capital Reserve will be subject to City Council review and approval as part of the annual budget process [Initial recommended risk factor percentages are included below for illustrative purposes for the current fiscal year]

Calculation and Risk Factors Used

Revenue Risk

General Sales Decrease Economic Recession

Purpose: Cover fixed costs due to large scale economic shock similar to the Great Recession of 20082012 The fixed costs represent the total amount of operating expenses historically assumed or experienced to be fixed and add debt service, the necessary 10% coverage of debt service as well as the PILOT to the City.

[The cash reserve will include 7.00% of fixed costs over a 12-month period]

Loss of Top Customer

Purpose: Cover fixed costs due to the loss of one of the top customers and also represents loss of sales due to conservation efforts.

[The cash reserve will include 3.1% of fixed costs over a 12-month period]

Interest Income

Purpose: Address risk of loss of interest income on invested cash.

[The cash reserve will include up to 100 basis points (1%) of interest income from short-term investments over a 12-month period]

Expense Risk

Treatment and Disposal

Purpose: Address risk of an increase in the cost of treatment and disposal.

[The cash reserve will include a 3.0% assumed variance on an increase in treatment and disposal over a 12 month period]

Other expenses – Collection, Lab Services and Administration & General

Purpose: Address risk of operating expenses incurred by the department.

[The cash reserve will include a 1% assumed variance for a small increase in operating expenses over a 12-month period]

Working Capital

Purpose: Represents a level of cash on hand to address the billing cycle (up to 60 days to convert WPC treatment and delivery costs to an account receivable to cash).

[The cash reserve will include up to an assumption of 90 days of working capital]

Capital Reserve

Purpose: Represents a level of cash on hand to allow for the flexible execution of both routine and unexpected capital projects.

[The cash reserve will include up to the average annual deprecation levels]

Targeted Cash Reserve Calculation

The targeted cash reserve calculation considers the risk “in total” and not each individual category. The recommended level is $16.5 million

If certain events occur that results in cash reserves falling below the targeted cash reserve levels, Manager should make recommendations to the City Council to restore cash reserves to the targeted levels over the subsequent three years. These actions may include a number of options:

• rate adjustments

• cost reductions

• issuance of bonds to fund capital improvement programs rather than the use of “PayGo”

• funds on hand

• modification of the assumptions used to determine the cash reserve levels

It is important to emphasize this is a recommended targeted cash reserve. Actual cash reserves may vary substantially above the target and is dependent of the life cycle of assets, future capital plan, rate setting policies, and debt policies. The cash reserve calculation should be updated annually as part of the budget process.

GLOSSARY A

Accrual Basis of Accounting – A method of accounting by which transactions are recognized when they occur, regardless of the timing of cash receipts and disbursements.

Accounting System – The collective set of records and procedures used to record, classify, and report information on the financial status and operations of the city. The city currently uses Munis.

Accounts Payable – Amounts owed by the city to external entities for goods and services received.

Accounts Receivable – Amounts due to the city from external entities for goods and services

Adopted Budget – The title of the budget following its formal adoption by resolution of the City Council.

Ad Valorem – In proportion to value, a basis for levy of taxes on property.

Appropriation – The legal authorization by the City Council to make expenditures and incur obligations for specific purposes, usually limited in the amount and the time in which it may be expended.

Assessed Valuation – A dollar value placed on real estate or other property by the Jackson County as a basis for levying property taxes.

Asset Management – Lifecycle management of an infrastructure asset to provide the required level of service in the most cost-effective manner. Activities include project planning, design and construction, commissioning, operations and maintenance, repair, replacement, upgrade, restoration, modernization, or refurbishment and decommissioning or disposal.

Audit, external – An examination of city records and accounts by an external source to check their validity and accuracy. A systematic collection of the sufficient, competent evidential matter needed to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities.

Audit, internal – An examination of city records and/or processes by an internal source to provide an assessment to improve the economy, efficiency, and effectiveness of city government.

BBalanced Budget – A budget in which planned expenditures do not exceed planned funds available. For budgeting purposes, the use of contingency reserves or use of fund balance will be considered revenue in defining a balanced budget.

Beginning/Ending Fund Balance – Unencumbered resources available in a fund from the prior/current year after payment of the prior/current year expenses.

Bond – A certificate of debt issued by an entity, guaranteeing payment of the original investment,

plus interest, by a specified future date.

Budget – An annual financial plan that identifies revenues, types and levels of services to be provided, and the amount of funds that can be spent. Independence's Operating Budget encompasses one fiscal year, as does the Capital Improvement Program appropriation.

Budget Adjustment – This is a supplemental increase or decrease to the approved budget approved by the City Council via a resolution or meeting minute motion.

Budget Calendar – The schedule of key dates or milestones which a government follows in the preparation and adoption of the budget.

Budget Document – The official written statement prepared by the Finance Department and supporting staff, which represents the proposed budget to the legislative body.

Capital Assets – Purchases or acquisitions of assets with an initial individual cost of more than $10,000 and an estimated useful life more than one year. Categories include land, buildings, equipment, infrastructure assets (roads, bridges, traffic signals, water and sewer systems, drainage systems) and other similar categories.

Capital Improvement Program – A multi-year financial plan containing proposed construction of physical assets such as park, street, water, sewer, and recreation facilities.

Capital Project Funds – Funds that are utilized to account for resources used for the acquisition and construction of capital facilities by the city, except for those assets financed by proprietary funds.

Capital Outlay – Equipment (fixed assets) with a value $1,000 or more and an estimated useful life of more than one year, such as automobiles and office furniture, which appear in the operating budget.

Community Development Block Grant (CDBG) – Funds allocated to local government from the federal government, usually through a local clearinghouse based on a formula, but required to be applied for and used within a broad functional area such as community development.

Community Facilities District (CFD) – A designated area for specific capital improvements installed by the city or a developer, or the maintenance of the same. The property owners receiving the benefit of the improvements pay an assessment on their property tax bills.

Comprehensive Annual Financial Report (CAFR) – Audited financial statements submitted to the Mayor, City Council, and City Manager by the Finance Director on an annual basis.

Consumer Price Index (CPI) – A statistical description of price levels provided by the U.S. Department of Labor. The change in this index from year to year is used to measure the cost of living and economic inflation.

Cost Allocation – A method used to charge General Fund overhead costs to other funds, such as Enterprise funds and Internal Service funds.

Debt Service – The payment of principal and interest on borrowed funds such as bonds.

Deficit – When the expenditures of a government are greater than its taxes and other revenues.

Deferred Maintenance – A backlog of needed repairs to city facilities including facility maintenance, painting and structural repairs.

Depreciation – The expense incurred with the expiration of a capital asset.

Direct Costs – Operational expenditures exclusive to a specific service or program.

Discretionary Revenue – Revenue received or collected which is not restricted in use and can be used for any city expenditure.

Encumbrance – A legal obligation to pay funds, an expenditure of which has not yet occurred. The designation or reserving of funds to buy an item or service.

Enterprise Fund – A fund type established to account for the total costs of selected governmental facilities and services that are operated like private enterprises and supported directly by fees and charges to users such as sewer services and are intended to be entirely self-supported.

Estimated Revenue – The revenue projected or estimated to be received during a fiscal period.

Expenditure – The spending of funds set aside by appropriation for identified goods and services

Fee – A general term used for any charge levied by government for providing a service or permitting an activity.

Fines & Forfeitures – Revenues received and/or bail monies forfeited upon conviction of a misdemeanor or municipal infraction.

Fiscal Year – 12-month period designated as the budget year. The City of Independence's fiscal year is July 1 to June 30.

Fringe Benefits – This consists of the costs to provide employee benefits that include insurance and retirement and other miscellaneous benefits.

Full-time Equivalent (FTE) – The hours worked by one employee on a full-time basis, used to convert the hours worked by several part-time employees into the hours worked by full-time employees.

One full-time position equates to 2,080 annual hours, and two employees each working 1,000 annual hours equals 1.0 full-time equivalent employee.

Full Time Position – A position where the employee works a full schedule as defined by the city, receives the benefits for full-time employees, and is covered by employment laws. One full-time position equates to 2,080 annual hours.

Fund – A set of interrelated accounts to record revenues and expenditures associated with a specific purpose.

Fund Balance – The amount of financial resources available for use, or the excess of an entity’s assets over its liabilities. A negative fund balance is sometimes referred to as a deficit.

G

Generally Accepted Accounting Principles (GAAP) – A combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information. GAAP aims to improve the clarity, consistency, and comparability of the communication of financial information.

General Fund – The primary fund used by the city for which revenues and expenditures are not legally restricted for use. Examples of departments operating within the General Fund include Fire, Library, Parks & Recreation and Police.

Governmental Accounting Standards Board (GASB) – Establishes and improves standards of states and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports.

Grant – Contributions of cash or other assets from another agency to be used or expended for a specified purpose, activity, or facility.

I

Indirect Cost – Costs that are essential to the operation of the city but not exclusive to any specific service or program. Indirect costs are primarily associated with support departments such as City Clerk, City Attorney, City Administration, Human Resources, and Finance.

Infrastructure – Public domain fixed assets including roads, curbs, gutters, sidewalks, drainage systems, lighting systems and other items that have value only to the city.

Interest Expense – Interest costs paid on loans and bonds.

Interfund Transfers – Payments from one fund to another fund, primarily for work or services provided.

Internal Service Fund – A fund that provides services to all city departments and bills the various other funds for services rendered.

Investment – Securities and real estate purchased and held to produce income in the form of interest, dividends, rentals and base payments.

Long-Term Debt – Debt with a maturity of more than one year after the date of issue.

Mandated Program – A requirement by the State or Federal government that the city perform a task, perform a task a particular way or perform a task to meet a particular standard, often without compensation from the higher level of government.

Maintenance and Operations – A general category used for classifying expenditures for materials, supplies, and services that are normally used within the fiscal year.

Modified Accrual Basis of Accounting – A method of accounting in which revenues are recognized in the period they become available and measurable, and expenditures are recognized in the period the associated liability is incurred.

Municipal – In its broadest sense, an adjective which denotes the state and all subordinate units of government. In a more restricted sense, an adjective which denotes a city or village as opposed to other local governments.

Municipal Code – A collection of ordinances approved by City Council.

One-time Expenditures and/or Revenues – Used for one-time projects or services. After the project or service is completed, expenditures and/or revenues are terminated and are not considered part of the budget for the following year

Operating Budget – The annual appropriation of funds for ongoing program costs, which include salaries, benefits, maintenance, operation, and capital outlay items.

Operating Costs – Estimated on-going expenses that can be expected to occur following the construction of a Capital Improvement Project.

Ordinance – A formal legislative enactment by the City Council.

Object Code – Refers to the specific expense or revenue category within the accounting structure.

Organization Key (Org key) – Refers to the specific assigned org key in the accounting structure. Each division has multiple organization (org) keys to refer to each program.

Personnel – Costs associated with providing the staff necessary to provide the desired levels of

services. Included are both salary and benefit costs.

Proposed Budget – The title of the budget prior to its formal adoption by resolution of the City Council.

Program Revenue – Revenues generated by a given activity. R

Reserves – A separate fund balance classification maintained for restricted use, i.e., fiscal sustainability or economic stabilization; or for unrestricted use to protect the city from emergencies or unanticipated expenditures.

Resolution – A special order of the City Council that requires less legal formality than an Ordinance.

Revenues – Amount of funds received from the collection of taxes, fees, permits, licenses, interest, and grants during the fiscal year. S

Special Assessment – A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties.

Special Revenue Funds – A fund that collects revenues that are restricted by the city, state, or federal government, used to account for the revenue derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes.

Surplus – When revenues exceed expenditures in a given fiscal year.

TTaxes – Mandatory charges levied by a governmental unit for the purpose of financing services performed for the common benefit.

Transfers – Legally authorized financial transaction occurring between a fund receiving revenue to the fund through which the resources are to be expended.

Undesignated Fund Balance – That portion of the fund balance that has neither been restricted nor designated for a specific purpose. The account is available for general appropriation.

User Fees – Fees charged to users of a particular service provided by the City.

WWorking Capital (Designated) – An account within the fund balance of the General Fund in which resources were set aside for purposes of maintaining positive cash flow, shortfalls in the revenue projections, and emergencies during the fiscal year.