The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Branson for the annual budget beginning July 2021. In or der to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan, and a communication device.
This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.
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April 29, 2022
Honorable Mayor and Members of the City Council:
I am pleased to submit to you this transmittal letter that details the Submitted Budget for the City’s fiscal year beginning July 1, 2022, in accordance with Section 8.2 of the City Charter. The proposed budget totals $338,086,187 or a decrease of 0.3% over FY 2020-21 actual expenditures.
The primary purpose of the City’s budgeting process is to develop, adopt, and execute a financial plan for accomplishing the City Council’s goals for the upcoming year. Development of the FY 2022-23 Submitted Budget was guided by the City’s strategic plan, Independence for All, feedback provided through a citizen survey of budgetary priorities, and the policy direction of the City Council within the context of a highly resource-restricted environment.
The Proposed Budget was developed as the pandemic transitioned to an endemic. While much of the uncertainty associated with the pandemic is behind us, we continue to navigate many of the linger effects
such as supply chain issues, labor shortages, and perhaps most significantly, inflation. Many of the City’s structural financial issues existed before the onset of the pandemic; the pandemic only exacerbated the challenges of these historical budgetary challenges. However, by exercising fiscal restraint, strong financial management, strategic use of intergovernmental revenue, and numerous strategies implemented at the pandemic’s outset, the City has been able to maintain core services over the preceding two years while avoiding staffing reductions, employee furloughs or use of reserve funds.
Economic Factors
Similar to other businesses, inflation has impacted City operations. The Consumer Price Index for our region has increased nearly 9% from a year ago. For example, recent bids reflect a 33% increase in asphalt unit costs (from $12/sq. yard to $16) and 30% increase in steel costs over last year’s pricing. In contrast, as noted on page 10, sales tax funds are projected to increase 4.5%. If the City is fortunate enough to acquire needed supplies and materials, it costs significantly more. This has real implications on city operations and the ability to successfully execute projects.
Unemployment peaked in the metro area in April 2020 and has rebounded quickly. The low unemployment rate strains the City’s ability to hire and retain a qualified and talented workforce. Providing competitive wages and benefits places additional pressure on the City’s limited financial resources.
Independence for All
After several months of stakeholder feedback, in March 2021, the City Council adopted updates to the City’s strategic plan, Independence for All. The strategic goals of the plan remain unchanged:
• 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 updated plan includes emphasis on five priorities:
• Reduce crime and disorder
• Communicate more effectively internally and externally
• Stabilize and revitalize neighborhoods
• Reduce blight
• Enhance public health
A survey was also administered leading into this year’s budget process. The service areas receiving the most support included (in priority order):
1. Maintain city streets, bridges, curbs, and sidewalks
2. Increase the number of police officers
3. Create a taskforce to increase services and outreach to homeless
Areas receiving the least support included (in priority order):
7. Increase funding for capital improvement repairs to city historic sites
8. Add additional fire stations throughout the city
9. Fund transit model to support commuter services to employment centers outside the city
General Fund Five-Year Financial Forecast
Leading into development of the Capital Improvements Program and Proposed FY 22-23 Budget, the General Fund Five-Year Financial Forecast was presented to the City Council in January. This reflects the latest financial data including recently authorized drawdowns and police personnel compensation program.
City Council Resolution 17-729 adopts a policy 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. Through the leadership of the City Council and strong financial management by City staff, the Unrestricted Fund Balance for the General Fund is projected to rise to 12% of budgeted expenditures in the 2022-23 Fiscal Year. While this is a significant improvement to the City’s overall financial position, the increase is not structural in nature as it reflects savings primarily from personnel vacancies and onetime intergovernmental revenue. This is also the final year of a pandemic grant subsidy for transit operations. Sustaining this service will require an additional $1.2M in general fund expenditures beginning in FY 23-24.
revenue
$5,597,702
As the chart below indicates, expenditure growth is outpacing revenue growth. This structural imbalance leaves a projected ending fund balance of ($3M) by FY 26-27 (see chart above). This is not a sustainable trend as it does not provide the City with sufficient resources to navigate any further economic disruptions or the flexibility to make strategic investments or service enhancements within the financial plan period.
Over the past six years, focus has been placed on prioritizing services, managing expenditures, and developing and executing plans to address the ongoing structural imbalance that has negatively impacted the City’s financial position and service delivery for many years. This required the collaboration and support of the City Council, city leaders, bargaining units, and other stakeholders. The City has taken steps to address OPEB liabilities, compensated absences, restructuring debt, among many other initiatives to address legacy practices and modernize City operations. Continued stabilization of the City’s fiscal condition will require further efforts to critically examine and prioritize services, evaluate revenue options, as well as focus on attracting capital investment and other initiatives to grow the economy. However, the Assessed Value chart below demonstrates the challenges of relying on growth alone to address the City’s service needs
Fund Balance versus policy (16% of
)
Unassigned Fund Balance
Target
General Fund Overview
Total revenues for the General Fund in the Fiscal Year 2022-23 Budget are $74,755,611 which is a year over year reduction of $4.3M from 2021-22 Forecasted Revenues. This reduction is primarily attributed to $3.1M in federal ARPA revenue that was used to support the FY 21-22 Budget. Revenue sources and performance over the previous three years is outlined in the table below:
As reflected in the table above, total General Fund Revenues in the Submitted Budget continue to remain flat. The significant growth in Franchise Fees is attributed to the increase in the State Gas Tax. This is offset by the multi-year reduction of the Cable Franchise Fee.
Total expenditures for the General Fund are $74,303,137 representing a year over year decrease of $1,219,606 (-2%) from 2021-22 forecasted expenditures.
As outlined in the FY 2021-22 Proposed Budget, the American Recovery Plan provided a temporary buffer enabling the City to assess its financial position and align resources in the General Fund to provide basic service delivery. Those resources are no longer an option, and this budget reflects that reality.
While the Proposed Budget is balanced as required by State Law, there is no built-in capacity for expansion. As such, any enhancements will require corresponding reductions in expenditures as an offset. Maintenance of currently funded items presented a deficit of $5.35 million in the General Fund at the onset of the budget development process due to the lack of growth in revenues. As I cautioned in the previous year’s budget message, without further structural reductions in operating expenses or an infusion of new revenues, the financial constraints experienced each year will continue to limit service delivery. Such options include:
• Make strategic changes to legacy expenditures that are growing at unsustainable rates, such as health benefits and overtime policies.
• Attract and retain industry that meets market demand and provides employment opportunities for Independence residents.
• Pursue other revenue growth opportunities through ballot initiatives.
• Strategically address service-level deployment models to match citizen/service level demand, emerging technologies, regional capacity, and industry best practices.
• Make strategic use of one-time resources.
• 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.
General Fund proposed changes of note include:
• No service expansions except for full year funding for Retiree Benefits Specialist position.
• Reduced Fire Department overtime cost due to increased personnel supported by expanded Fire Sales Tax. This is a short-term savings and not structural in nature.
• Adoption of Fair Labor Standards Act in Personnel Policies and Procedures Manual to align overtime calculation with federal law and best practices among metro area cities.
• Stabilize the Stay Well Fund through structural plan design changes to manage health benefit costs
• Finance and Administration is moving to an internal service fund to improve transparency regarding cost allocation and allow for better resource planning and interdepartmental support. This model is similar to Central Garage, Worker's Comp, and Risk Management.
The proposed changes to FLSA overtime policies and anticipated plan design changes for the Stay Well Fund are necessary to balance this budget. If the City Council chooses not to adopt these provisions, corresponding budgetary reductions in excess of $2 million will be required. I fully recognize that these proposals will not be without controversy among many of our employees. However, recently released US Census data verifies the stark reality our community faces. In reviewing 2020 census data, 31% of homes in Independence have a total household income of less than $35,000. Even more alarming is that 11% of households are below $15,000 annually in income. While Missouri is seeing strong economic growth and low unemployment rates (3.7% statewide) in Independence we have an unemployment rate almost double at 6.5%.
As employees of the City of Independence, we must realize that we are fortunate to have a salary and benefit package that far exceeds the total household income of more than one-third of our citizens. We must then answer a fundamental question: as City employees, are we here to serve, or to be served? We must remain cognizant of our need to provide a competitive salary and benefit plan while maximizing the value of services our citizens underwrite. Reducing City services at the expense of propping up an extraordinary benefits plan is not a model I can recommend as your City Manager.
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). Recognition was received from the State in early 2021, and this budget provides continued funding to provide baseline public health services.
Use Tax Fund Overview
Estimated revenues in the Fiscal Year 2022-23 Proposed Budget from the Use Tax are outlined in the table below. Voters approved amended Use-Tax ballot language in November 2021 to support expanded applications of the Use Tax.While this provides much needed resources to police personnel, the additional $1M annually dedicated to Police increased the threshold amount that enacts the “waterfall” to other funds.
Sales Tax Funds Overview
In addition to the Use Tax, the City of Independence administers five additional voter-approved sales taxes. Like all City funds, these continue to experience pressure of increasing costs to support their intended uses against limited growth. The only exception to this is the Fire Public Safety Sales Tax which received voter approved expansion in November.
• Parks, Recreation, and Tourism (4.0 FTE):
• Fiscal Administrator (1.0)
• PRT Maintenance Worker II (1.0)
• Multimedia Communications Coordinator (1.0)
• Right of Way Supervisor / Maintenance Supervisor (1.0)
• Fire PST Changes (22 FTE):
• Battalion Chiefs, 3.0
• Fire Captains, 3.0
• Fire Equipment Operators, 3.0
• Fire Inspector – Communications, 1.0
• Firefighter Engineers, 6.0
Enterprise Funds Overview
The submitted budget does not forecast significant revenue growth in the enterprise funds which is a result of limited economic expansion, flat consumption, and fixed utility rates.
Highlights in the Proposed Budget include:
• Strategic drawdown from fund balance for capital investments in system infrastructure in the Sewer and Water Funds, including continued multi-year Water Main Replacement Program
• Careful financial management in IPL to determine if capital projects can be supported.
• Management of any utility budget through the capital program is not a sustainable strategy. Further evaluation is warranted to ensure system reliability.
• 4.0 FTE Equipment Operators, Sewer
• $254,000 for sanitary collection system repairs
• 2.0 FTE Equipment Operators, Stormwater
• $122,000 for storm water system repairs
• 1.0 FTE Meter Reading Supervisor, IPL
• $830k in Sewer Fund for Little Blue Valley Sewer District rate increase Conclusion
As we reach the point of an endemic, is important to take a moment to thank all our City staff who provided and continue to provide critical services to the community. They do so with utmost professionalism and service commitment in a highly challenging environment.
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.
Respectfully,
Zachary C. Walker City Manager
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Mayor & City Council
Form of Government
In 1961, Independence voters selected a council-manager form of government. Under Charter Article 2.1, this form of government calls for one mayor and two council members elected by the city, and four council members elected by districts. The mayor and all city council members are elected to staggered four-year terms. The governing body is generally referred to as the “City Council.” As the policy makers, the City Council passes resolutions and ordinances, adopts the city budget, appoints citizens to advisory boards and hires the city manager.
City Officials
Rory Rowland Mayor
John Perkins Councilman
District 1
Brice Stewart Councilman
District 2
Michael Steinmeyer Councilman
District 3
Dan Hobart Councilma n District 4
Jared Fears Councilman At Large
Vacant Councilman At Large
Zachary Walker City Manager
City Organizational Chart
Reader’s Guide to the Budget Document
The purpose of this budget document is to provide a comprehensive view of the operating and capital budgets. The budget is a tool is a tool for management to plan services, but it is also a communication tool to the public on the overall financial and policy direction of the city. Use this guide to aid navigation of 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 the Mayor and City Council
• City of Independence overview and history
• Overview of the budget process
• Discussion of the city’s 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.
Appendix
The appendix includes miscellaneous information that may help further understanding of the budget, including:
• Approved packages included in the budget
• Capital Outlay details by department
• ARPA summary
• Glossary of budget and finance terms
Budget Development
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. Finance develops the 2022 budget manual.
2. Finance meets to resolve issues and prepare budget outlook.
January – February: Operating Budget Kickoff & CIP Presentation
1. Finance meets with departments to kickoff budget process.
2. Updated Five-Year Forecast presented to City Council.
3. Finance prepares the base budget, chargebacks, and preliminary personnel budgets.
4. Revenue projections and estimated actual expenses for prior year are prepared.
5. Capital Improvement Program budget presented by Economic Development to the Planning Commission.
March: Department Preparation
1. City Council adopts annual Strategic Plan update.
2. In conjunction with Finance, departments and divisions prepare budget proposals.
3. Department Directors present budgets and package requests to the City Manager.
4. Final adjustments in revenue and expenditure estimates are complete.
5. City Manager reviews recommend budget and gives preliminary approval on budget changes to be included in Proposed Budget.
6. Finance prepares Proposed Budget document.
April – May: Preliminary Review and Public Input
1. City Manager Proposed Budget submitted to the City Council.
2. Online budget survey for public input.
3. Capital Improvement Program memo with recommendations issued from Planning Commission.
4. City Council makes policy decisions and budgetary amendments to the Proposed Budget.
June – July: Final Review and Adoption
1. First reading of appropriation ordinances held adopting budget.
2. City Council proposes/amends budget per policy decisions.
3. Second reading of appropriation ordinances held adopting budget.
4. Finance begins production of final budget document.
August-September: Property Tax Levy and Final Budget Book
1. Assessed valuation received from Jackson and Clay Counties to set Property Tax Levy Rates.
2. Public hearing to set Property Tax Levy held.
3. Second reading of appropriation ordinances held adopting the annual tax levy.
4. Tax levy rates submitted to Jackson and Clay Counties.
5. Adopted budget book printed and published online.
6. First quarter budget amendment prepared for City Council approval.
FY 2022-23 Budget Calendar
Date
Item
12.02.2021 Resident Budget Survey Posted (closes at the end of January)
12.15.2021 Personnel allocations and overtime budgets sent to departments
12.31.2021 CIP updates and new projects entered in PlanIt
01.05.2022 Budget kickoff meeting
01.07.2022 Personnel allocation changes due
01.18.2022 Overtime budget changes due
01.24.2022 CIP preliminary report presentation at study session
02.01.2022 Internal service charges due (Central Garage, Tech Services, WC, Risk)
02.03.2022 Finance set items and internal charges are loaded Munis is open for budget entry
03.01.2022 Due from departments:
• Proposed department budgets and package requests
• CIP for the fiscal year
• Revenues
• Estimated actual expenditures
• Personnel corrections/adjustments
• Capital outlay list
03.08.2022 CIP presented to Planning Commission
04.01.2022 Finance completes review of department budget submissions
City Manager completes departmental meetings to review proposed budgets
04.08.2022 City Manager approves recommended changes for proposed budget, packages posted and departments notified
04.15.2022 Department summary pages and organizational charts due
05.02.2022 Fee changes are due from departments
05.23.2022 City Manager proposed budget submitted to the City Council
06.06.2022 First reading of the ordinance adopting the FY2022-23 budget
06.23.2022 Approval of the ordinance adopting the FY2022-23 budget
07.01.2022 Adopted budget goes into effect
About the City
About the City of Independence
Independence is the fifth largest city in Missouri, located within Jackson County. It is the largest suburb of the Kansas City metropolitan area 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 Mayor also sits on the City Council and serves as the “Head of Government” for the city. Members serve a four-year term, beginning 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 I-70 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: 123,011
Square Miles: 78.25
Number of Households: 48,836
Average Household Size: 2.3
Median Household Income: $52,919
Median Age: 43.7
Median value of owner-occupied units: $121,200
School Enrollment: 29,949
Miles of highways: 46.38
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:
Source: censusdata.org
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
Source: censusdata.org
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 2021, the total assessed valuation for the city was $1,562,300,351.
Source: Jackson County Collection Department
ADDITIONAL OPERATING INDICATORS
Source: City of Independence
Strategic Plan Overview
2022-2026 Strategic Plan Adoption
The City of Independence adopted an updated strategic plan in 2022, succeeding the previous 5-year plan adopted for 2017-2021. 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.
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
The following pages provide a detailed look at the 2022-2026 Strategic Plan.
Goal: Customer-Focused – Improve customer service and communication
Objective: Improve Customer Service
Strategies:
• Implement process to better track and respond to citizen calls for service.
• Implement effective customer service training for all front-line employees
• Use social media to provide responses to customers/citizens.
Objective: Communicate more effectively internally and externally
Strategies:
• Streamline and simplify reporting to make efficient use of staff time and ensure clear, concise information is delivered to the City Council and public
• Develop and implement a communication strategy to share the strategic plan with city employees and public.
• Enhance the City’s primary public information tools: Channel 7, website, CityScene newsletter, social media.
• Make improvements to the City’s intranet/network so it is easier for employees to find information and collaborate.
• Implement the new utility billing system to improve understanding of utility charges.
• Complete implementation of Cityworks to improve data gathering and reporting.
• Create more opportunities for employees to interact with management and share ideas.
• Promote and expand open data in accordance with the What Works Cities standard.
• Use new methods and technologies to identify and reach all internal and external audiences.
Goal: Fiscally Sustainable – Ensure city finances are stable and sustainable
Objective: Control long-term costs
Strategies:
• Continue to advance the employee wellness program to contain health insurance and workers compensation costs.
• Conduct a comprehensive market salary study and implement recommendations in the employee pay plan.
• Negotiate fair, sustainable compensation and benefit agreements with labor unions.
• Increase efficiencies to control costs of local government operations.
Objective: Optimize resources
Strategies:
• Explore the use of general obligation bonds for infrastructure and facilities projects.
• Identify and capture sustainable funding sources.
Objective: Improve long-range financial planning and decision-making
Strategies
• Develop long-range financial forecasts and capital plans for every major governmental fund.
• Develop better financial reporting to improve awareness and access to information for decision-making.
• Develop or refresh financial policies such as, but not limited to, fund balance policy, investment policy, debt management policy, and onetime revenues policy.
• Develop cost of service studies for utilities and ensure appropriate customer rates.
• Develop life-cycle costing to better understand the total cost of ownership for facility and infrastructure investments.
• Implement modern financial and human resources management software.
• Improve financial analysis and reporting on development incentives.
Goal:
Quality –
Achieve livability, choice, access, health and safety through a quality-built environment
Objective: Reduce blight in commercial corridors, entryways & neighborhoods
Strategies
• Conduct proactive code enforcement sweeps along key commercial corridors and entryways.
• Cross-train inspectors to conduct code enforcement and zoning enforcement.
• Revise policies and procedures to more aggressively and efficiently process code enforcement actions.
• Streamline process to demolish dangerous vacant buildings.
• Improve the process to suspend/revoke business licenses for properties with frequent violations.
• Acquire blighted properties that could be redeveloped for improved economic activity.
Objective: Improve visual appearance of major commercial corridors & historic sites
Strategies
• Evaluate and prioritize recommendations of current corridor plans: Truman Road Green Gateway Plan, Truman and Winner Road Commercial Node Plan, US 24 Highway Corridor Study Plan, Englewood Art District Circulation Plan, Northwest Independence Sidewalk Health Impact Assessment, Noland Fashion Square Development Plan, Noland Road CID Plan, Linking Independence Plan (Square to National Trails Museum), Square Revitalization Plan, 40 Highway Corridor Study, Little Blue Parkway Plan, Mid-Town Truman Road Plan.
• Develop corridor plans for: US 40 Highway, MO 291, 23rd Street and Fairmount District (US 24).
• Implement recommendations of Trails Museum Master Plan designed to improve the historic sites.
• Beautify major entryways into the city.
• Target street and sidewalk maintenance along major corridors and around historic sites.
• Proactively clean up public right-of-way along major corridors and near historic sites.
Objective: Improve condition & maintenance of public infrastructure & facilities
Strategies
• Develop a pavement condition index and implement a street maintenance program that targets improvements in high visibility and high need areas.
• Renew the Streets Sales Tax as part of a sustainable funding strategy for public infrastructure.
• Evaluate space and maintenance needs for city buildings and determine a long-term strategy for needed improvements.
• Ensure the Complete Streets Policy is implemented during all new construction and renovation.
• Prioritize and implement recommendations of the Parks and Recreation 2010 Master Plan.
Objective: Reduce crime & disorder
Strategies
• Increase public education regarding crimes of opportunity.
• Proactively address crime trends and patterns with targeted policing efforts.
• Implement a business crime prevention outreach program.
• Implement the video surveillance monitoring program for convenience and tobacco stores.
• Balance proactive policing efforts with community engagement within allocated resources.
• Identify strategies to improve and expand resources, such as Crisis Intervention Teams, for mental health needs.
Objective: Increase perception of safety
Strategies
• Consider ways to prevent crime and increase perception of safety in building codes and community design.
• Improve street lighting and sidewalks in priority locations.
• Continue support and enhance Volunteers in Police Services (VIPS) program.
• Expand the Neighborhood Watch Program.
• Increase park patrol to enhance perception of park safety.
• Improve community outreach and good news stories.
• Enhance police and city officials’ presence at community meetings and events such as neighborhood association meetings.
Objective: Stabilize and revitalize neighborhoods
Strategies
• Target incentive programs (including tax abatement), CDBG and HOME resources in neighborhoods in need of revitalization and stabilization.
• Develop model zoning codes to encourage affordable housing units near transit or other key services at activity centers.
Objective: Build new housing units to fill market need
Strategies
• Consider adjusting code and building specifications to create more flexible development – such as for new urbanist developments.
• Ensure that land use policies and housing strategies incorporate Community for All Ages best practices.
• Develop a housing strategy for the Little Blue Valley to encourage mid-range and executive housing.
Goal: Growth – Increase economic prosperity of community
Objective: Attract & retain quality employers
Strategies
• Support and empower the Independence Economic Development Council to recruit/retain businesses, develop entrepreneurs, and facilitate workforce training with community partners.
• Develop an image/marketing campaign that targets perception of Independence by people inside and outside of Independence.
• Improve partnerships and coordination with all school districts and social service agencies.
• Partner with KCATA to ensure that public transportation connects the Independence workforce to quality jobs.
• Complete the City of Independence Comprehensive Plan update, utilizing a robust community engagement process to identify
neighborhoods, housing choice, transportation and economic development needs and goals.
• Support development of an industrial/office business park.
• Develop utilities master plans for areas targeted for development in the Comprehensive Plan.
• Create an Economic Development Policy to guide decision-making and ensure a progressive and effective approach to public incentives.
Objective: Grow retail & commercial business Strategies
• Support redevelopment of key corridors through land use planning/zoning and incentives.
• Attract and retain visitors to the City's historic sites, amenities, and events.
• Promote hotel/motel industry best practices to ensure quality guest facilities that attract community visitors.
• Obtain legislative authority to pursue the Museum and Tourism Related Activities Tax to support tourism needs.
• Develop historic programming to benefit historic areas and districts.
• Support historic preservation efforts to protect community historical resources.
Performance Metrics
This performance measurement dashboard focuses on monitoring the City’s progress toward its five-year strategic plan, Independence for All. There are four goal areas with associated measures that attempt to identify how well we are doing toward reaching the desired objectives adopted by the Mayor and City Council. The measures update quarterly, with the following colors showing the progress: Green (achieved or surpassed goal), Yellow (making progress toward goal), and Red (not making progress toward goal). Clicking on a goal will bring you to a list of measures associated with that goal, where you can further click to see the full story for each measure.
For more detailed on each performance measurement, please visit the city’s website at: https://www.ci.independence.mo.us/CityCouncil/PerformanceDashboard
Customer-Focused Measures
Measure
Records
The total number of days it takes for records requests to receive final response and documents. The goal is for the City Clerk's office to produce these records within 5 business days of request.
The average time it takes for a customer services representative at the Utility Customer Service Center to answer a customer call. The goal is that calls will be answered in 5 minutes or less.
The percentage growth of new Facebook followers. The goal is to increase the number of followers by 5% each quarter.
The percentage growth of new Instagram followers. The goal is to increase the number of followers by 20% each quarter.
The percentage growth of new followers on Twitter. The goal is to increase the number of followers by 3% each quarter.
Actual Target Result
Measure
Actual Target Result
Nextdoor Growth Percentage 3.20 5.00
The percentage growth of new Nextdoor members. The goal is to see an increase in followers of 5% each quarter.
Pothole Service Requests
The percentage of pothole service requests completed within 3 days. The goal is to complete 75% of these requests within this timeframe.
Percentage of Animal Services Calls Held Over
The percentage of animals services calls that are held over to the following business day. The goal is to hold less than 5% of calls.
Average System Availability Index for Electric System
The average annual percentage of time electric system is available to serve customers. The goal is that this system is available 99.95% of the time when there are no major outage events.
Response Time to Reported Water Main Breaks
The number of minutes it takes to arrive at a reported water main break. The goal is to arrive at potential leak sites in 60 minutes or less.
Number of Data Sets Open to the Public
The number of data sets that are available on the City's Open Data Portal for citizens to view. The goal is to add 1 data set per quarter.
Quality Measures
Measure
The percentage of linear pipe (sanitary sewer system) cleaned each quarter. The goal is to clean 100% of the sewer system over the course of 3 years, which means 8.33% of the system must be cleaned each quarter.
Number of Dangerous Buildings Demolished
The number of dangerous buildings that have been demolished by the City as part of the strategic plan objective to reduce blight. The goal is to demolish 5 dangerous buildings per quarter, resulting in 20 demolitions per year.
Actual Target Result
Measure Actual Target Result
Voluntary Code Enforcement Compliance
The percentage of code enforcement cases that resulted in voluntary compliance (City did not abate the violations and/or issue a ticket). The goal is for 86% of code enforcement cases to end in voluntary compliance.
Percentage of Drinking Water Samples that Tested Negative for Bacteria
The percentage of Water Department bacteriological samples taken from various locations in Independence with no presence of harmful bacteria. The goal is that 98% of the samples will test negative.
Percentage of Code Enforcement Cases That Have Been Started Proactively
The percentage of code enforcement cases that were started proactively by a codes enforcement officer (without citizen complaint). The goal is for 8% of cases to be started proactively to help reduce blight.
Fire Department Response Time (Dispatch to Arrival)
The time elapsed from when the Fire Department is dispatched to when the first personnel arrive on scene. The goal is for personnel to arrive in less than 6 minutes and 20 seconds.
Percentage of Storm Structures Inspected
The percentage of storm structures that are inspected each quarter. The goal is to inspect 100% of the structures over the course of two years, which means that 12.5% of the structures need to be cleaned each quarter.
Percentage of City Maintained Areas Mowed on Schedule
The percentage of areas that are maintained by the City that were mowed on schedule. The goal is that 75% of these areas are mowed within the specified timeframe.
Length of Stay for Shelter Animals
Control long-term costs the shorter the stay, the cheaper it is to care for the animal and the higher the higher ROI at adoption
Police Department Response Times to Priority 1 Calls 5.15 5.00
The time elapsed between when the Police Department is dispatched to officer arrival on scene. The goal is for response times to be at or below the national target of 5 minutes.
Measure Actual Target Result
Capital Projects Completion
The percentage of capital projects completed on or ahead of schedule by the City's Public Works team. This department designs, manages and completes projects for a wide variety of areas including transportation and land development. The goal is to complete 75% of these projects on or ahead of schedule.
Growth Measures
Number of Single-Family Building Permits Issued
The number of single-family building permits issued by the City. The goal is to issue 25 permits per quarter, for a total of 100 permits per year.
Visitors at Historic Sites
The number of people that visit the various historic sites in the city. The goal is to increase the yearly overall visitors by 3% over the previous fiscal year, equaling 46,082 visitors for FY19/20.
Retail Vacancy Rate
The retail vacancy rate shows the percentage of retail spaces that are vacant for the quarter. The goal is to have a vacancy rate within 2 percentage points above or below 6.5%. New Jobs Created
The number of new jobs created in the community with the help and support of the Independence Economic Development Council. The goal is to have 600 new jobs created this calendar year, which would equate to approximately 150 new jobs per quarter. New Capital Investment
The amount of new capital investment created in the community with the help and support of the Independence Economic Development Council. The goal is to create $50 million in new capital investment this calendar year, which equates to approximately $12.5 million each quarter.
Industrial Vacancy Rate 3.20
The industrial vacancy rate shows the percentage of industrial buildings that are vacant for the quarter. The goal is to have a vacancy rate within 2 percentage points above or below 6%.
Budget Overview
Economic Outlook and Condition
The following considerations were made in building the budget for FY 2022-23.
Nationwide Unemployment
• As of November 2021, non-farm payroll employment has recovered 83% of the jobs lost at the peak of the economic shutdown.
• Employment is still 3.9 million below pre-pandemic peak.
Source: Economic Outlook for local officials, presented December 09, 2021, by MARC, KU, United Way of KC, MO Dept. of Economic Development using BLS data.
Kansas City Metro Unemployment
• Job growth returned the unemployment rate to near pre-pandemic levels to 3.6% in October 2021 compared to a low of 3.2% in late 2019 (see chart on next page).
• Unemployment levels remained level at 3.6% from July through October 2021.
• The KC Metro area’s unemployment rate was more than 0.5% lower than the national average.
Source: Economic Outlook for local officials, presented December 09, 2021, by MARC, KU, United Way of KC, MO Dept. of Economic Development using BLS data.
Federal Stimulus Bill
• Infrastructure Investment and Jobs Act (IIJA) passed in November 2021, which provides $150 million in competitive grants to states, counties, cities, townships, special districts and tribal governments.
Local Impact
• City of Independence estimated median income in 2020 was $29,733 according to the U.S. Census Bureau.
• Kansas City ranks 9th in the nation in net migration in the US based on a three-year moving average.
• As of the end of 2021, Kansas City had regained 127,900 of the 142,000 jobs lost during the first few months of the pandemic, or 90%
• Many of the industries showing the greatest net growth over the last 12 months were those hurt most at the beginning of the pandemic.
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.
• The Accommodation and Food Services Industry sector is projected to have the largest employment growth, with an increase of 52,160 jobs between 2020 and 2030. Most of this employment growth (86%) is due to recovery from the pandemic.
• There are still some concerns, especially in consumer spending and small business revenue.
General Fund – Five Year Forecast Update
• Top 3 revenue categories represent 67% of general fund revenue
• Sales tax susceptible to economic cycles
• Franchise fees
o Uncertain long-term outlook – experiencing decreases in cable and telephone franchise fees
o Energy efficiency (gas, electric)
o Technological change and customer trends (telephone and cable)
General Fund Revenue Summary
Major Sources of General Fund Revenues
Franchise
Property taxes
Intergov't revenue
Licenses & permits
Interfund Transfers
Fines & Court Fees
Service Charges
Other
Property Tax
• City has experienced solid assessed value (AV) growth in reappraisal years (odd-numbered years)
• Slight pullback in even-numbered years
o 2020 AV Decrease primarily a result of BOE property tax appeals from 2019 reappraisal
• Model assumes slower pace of AV growth compared to 2019 appraisal
• Revenue upside is limited by Hancock Amendment, if more aggressive AV projection were to be assumed.
Assessed Value (in $millions)
Breakdown of Resident Property Bill
$7 , State Blind Pension Where Your Property Taxes Go
$80 , Mid-Continent Library
$47 , Metro Junior College
$25 , Mental Health
$134 , Jackson County
Board of Disabled Services
City of Independence
Independence School
Jackson County
Mental Health
Metro Junior College
Mid-Continent Library
State Blind Pension
Sales Tax
• 4.5% increase in sales tax revenue
• No ARPA supplement
$15 , Board of Disabled Services
$140 , City of Independence
$1,250 , Independence School
• State DOR remits data to Finance with a two-month lag
• Monthly sales tax receipts have been resilient to date
• Updated projections to incorporate actual experience YTD
Based on 2021 Median Home Value of $121,000 and property tax bill of $1697.
Sales tax (in $millions)
Sales tax annual change (%)
Use Tax – Waterfall Provision on the General Fund
• On track to trigger the waterfall provision this fiscal year
• Forecast a total of $1,406,000 will waterfall in FY 2022-23, if the CPI remains relatively flat and the use tax remains stable:
o The General Fund share of this revenue is $535,000
o Other funds receiving revenue – Street Sales Tax, Park Sales Tax, Stormwater Sales Tax, Fire Sales Tax, Police Sales Tax
• Total use tax collected FY2022 was $5.79 million and is now yielding an average monthly collection of $482,000.
• 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 $4,100,000 (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 $6.29 million. This would mean a total of $1.4 million would “waterfall” to the other funds if these trends hold.
• FY 2022-23 budget estimates $535,000 will be allocated to the General Fund based on the waterfall provision
2021 Use Tax Receipts
PILOT Revenue in the General Fund
• Based on gross revenue
• Expected trend is slightly upward
Utility Franchise Fees
• Water: Historically a 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
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
o TIF 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:
o 2% cost increase for non-represented employees
o 1% increase for operating expenses, continued budget diligence
o Employee pays / benefits total including retiree health ($1.9M budget) = 81% or $58M
o Other pays: automobile, clothing/uniform, employee/other allowance, other pay types, OT, personnel services charged to projects
General Fund Expenditures
Budget Impacts and Considerations
• ARPA funds were used last year to balance GF budget
• Significant decrease in Municipal court Revenues due to Senate Bill 5 (-1.5M annually)
• 1% LAGERS increase
• Rising inflation is impacting cost of living and business
• Future budget impacts that will need to be monitored:
o Increasing healthcare costs
o Transit program subsidies
o Union negotiations – contractually obligated public safety pay adjustments
• Projected year-end unassigned fund balance is $9.2M
o $5.3 million General Fund deficit just to fund status quo
o The city’s reserve balance policy is 16% of annual revenues
o The city must continue to make additional adjustments over 5-year horizon to meet this goal $6,051,433
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 of 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 – see chart on below):
o Sanitary Sewer $36,203,389
o Water $41,437,855
o Power and Light $140,450,668
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 $53,518,601
• Ballot language requires these two funds to be allocated first:
Afiscalandaccountabilityentitywithaself-balancingsetofaccountsrecordingcashand other financial resources, together with allrelated liabilities and residual equities or balances,andchangestherein,which aresegregatedforthepurposeofcarryingon specificactivitiesorattainingcertainobjectivesinaccordancewithspecialregulations,or limitations.
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.
SpecialRevenueFunds
are used to account for specific revenues that are legally restricted to expenditures for specified purposes.
Street Improvements Sales Tax (011) -Votersapprovedaone-halfofonecentsalestaxforstreets, bridgesandsafetyimprovements. AdditionalrevenuesfromtheProposition"P"waterfall provisionareaccountedforhere.
Park Improvements Sales Tax (012) -TheParkImprovementsSalesTaxFundhasbeensetupto accountfor theone-quartercentsalestax identifiedforparksandrecreation.Additional revenuesfromtheProposition"P"waterfallprovisionareaccountedforhere.
Storm Water Sales Tax (013) -TheStormWaterSalesTaxFundhasbeensetuptoaccountfor theone-quartercentsalestaxidentifiedforstormwatersystemimprovements.Additional revenuesfromtheProposition"P"waterfallprovisionareaccountedforhere.
Police Public Safety Sales Tax (016) -ThevotersapprovedaCapitalImprovementsforPoliceSales TaxinApril2016attherateofone-eighthcentofthereceiptsfromthesaleatretailofall tangiblepersonalpropertyortaxableservicesatretailforaperiodofJanuary2017through December31,2028.ThePolice(Capital)SalesTaxFundhasbeenset-uptoaccountforthe
one-eighth cent capital improvements sales tax identified for police equipment. Additional revenues from the Proposition "P" waterfall provision are accounted for here.
Fire Public Safety Sales Tax (017) - The voters approved a one-half cent Fire Sales Tax in November 2021 until repealed by voters to replace the current 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-half cent for improvements including replacing and maintaining fire stations, apparatus, and lifesaving equipment. Sales tax funds can also be used to hire additional firefighters, administration, and personnel to improve department training needs. 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 in November 2021 to increase the Proposition "P" use tax to expand the use of funds for new and current Police Department personnel and equipment and to increase the total before inflation increase from $3 million to $4 million and does not change the first $1.5 million split between Animal Services and Police Department. Originally, 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) - 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.
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.
Com. Dev. Block Grant (008) - accounts for the federally funded Community Development Block Grant Act program.
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) changed to Finance Internal Service (095) - Management of Finance and Administration for the costs associated with providing services citywide including budget, accounting, human resources and technology services.
All funds in the operating budget book are appropriated by City Council via budget adoption.
Fund and Department Relationships
General Fund (002) x
Street Improvements Sales Tax (011)
Park Improvements Sales Tax (012)
Storm Water Sales Tax (013)
Police Public Safety Sales Tax (016)
Public Safety Sales
(017)
Police Use Tax (018)
Parks Health & Recreation Levy (007)
(004)
Com. Dev. Block Grant (008)
(009)
Grants (015)
Central Garage (090) *
Staywell Health Care (091)
Workers' Compensation (092)
Risk Management (093) *
(095)
Schedule 1
All Funds by Expense Category All Funds(1)
General Fund
Special Revenue Funds
9,613,6359,916,75610,634,19510,566,743
686,083777,546623,7361,880,600
Enterprise Funds
Internal Service 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.
(3) Finance and Administration was moved to an Internal Service Fund in FY 2022-23.
General Fund
$74,303,137
Special Revenue Funds
FY2020-21 FY2021-22
FY2021-22
FY2022-23
Enterprise Funds
FY2020-21 FY2021-22 FY2021-22
FY2022-23
30,143,67835,973,37931,372,79636,203,389 Total $208,860,262$222,953,130$207,762,245$218,091,912
(3) Finance and Administration was moved to an Internal Service Fund in FY 2022-23, therefore most expenses are spread in the operating expenditures of all other departments.
Governmental Funds
Enterprise Funds
Funds
FY2020-21
GovernmentalFunds
EnterpriseFunds
GeneralFund
Funds by Revenue Category Group
SpecialRevenueFunds FY2020-21
EnterpriseFunds
6 Governmental Funds General Fund Summary
Comparison of Revenues, Expenditures and Change in Fund Balance
Notes: (1) Unassigned
Schedule 7 Governmental Funds
Street Improvements Sales Tax Fund (011) Comparison of Revenues, Expenditures and Change in Fund Balance
Park Improvements Sales Tax Fund (012)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
Governmental Funds
Stormwater Sales Tax Fund (013)
Comparison of Revenues, Expenditures and Change in Fund Balance
Governmental Funds
Police Public Safety Sales Tax Fund (016)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
Governmental Funds
Fire Protection Sales Tax Fund (017) Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
Animal Shelter Use Tax Fund (010)
Comparison of Revenues, Expenditures and Change in Fund Balance
Governmental Funds Police Use Tax Fund (018) Comparison of Revenues, Expenditures and Change in Fund Balance
Excess Revenues Over (Under)
(1) Unassigned fund balance is per March 2022 financial statements.
Governmental Funds
Health & Animal Levy Fund (005)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
(2) FY 2021-22 budget includes the consolidation of the Health Inspection division (previously in Community Development.)
Parks Health & Recreation Levy Fund (007)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
Schedule 7
Governmental Funds
Tourism Fund (004)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
Community Development Block Grant (008) Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
HOME Grant - Rental Rehabilitation (009)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
7 Governmental Funds Grant Fund (015) Comparison of Revenues, Expenditures and Change in Fund Balance
8 Enterprise Funds Power and Light Fund (020) Comparison of Revenues, Expenditures and Change in Available Resources
Schedule 8
Enterprise Funds
Sanitary Sewer Fund (030)
Comparison of Revenues, Expenditures and Change in Available Resources
(1) Unassigned fund balance is per March 2022 financial statements.
Schedule 8
Enterprise Funds Water Fund (040)
Comparison of Revenues, Expenditures and Change in Available Resources
(1) Unassigned fund balance is per March 2022 financial statements.
Schedule 9
Internal Service Funds
Central Garage Fund (090)
Comparison of Revenues, Expenditures and Change in Fund Balance
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
9 Internal Service Funds
Workers' Compensation Fund (092)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
Internal Service Funds
Risk Management Fund (093) Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
Internal Service Funds
Enterprise Resource Planning (ERP) Fund (095)
Comparison of Revenues, Expenditures and Change in Fund Balance
(1) Unassigned fund balance is per March 2022 financial statements.
(2) Fund 095 was used to establish Finance and Administration as an Internal Service Fund in FY 2022-23.
Notes:
FY 2020-21 FTE does 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.
Notes:
FY 2021-22 represents the cost of full employment, assumes all vacancies are filled, and positions frozen during prior years are funded and filled.
FY 2022-23 reflects General Fund vacancy savings and movement of Finance and Administration out of the General Fund.
Notes:
Excludes Retiree Health Insurance.
FY 2022-23 represents the cost of full employment, assumes all vacancies are filled, and positions frozen during prior years are funded and filled.
Community Services
Community Development
Director: Tom Scannell
Building
Inspections
Development Services
Historic Preservation
Neighborhood Services
CDBG Administration
Regulated Industries
HOME
Administration
Transportation
Community Development
Department by Expenditure Category
Department by Fund
DEPARTMENT 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.
STRATEGIC PLAN CONNECTION
The Code Enforcement Division contributes to the City’s strategic plan by improving customer service and communication with the public through our daily interactions. Code Enforcement is essential in combating blight through corridor sweeps, monitoring known blight areas, and by continuing to recognize and address code violations proactively.
The Development Services Division contributes to the City’s strategic plan by updating necessary codes to help stabilize neighborhoods and help residents increase or maintain the value of their properties. In keeping with the Independence for All Strategic Plan, the division has ensured that land use policies provide residents with quality housing opportunities with safe and improved infrastructure. The Division has focused on Growth by supporting and guiding developers seeking to redevelop key corridors in the city with proactive planning and quality engineering. Through the short-term rental program and working with business owners, staff has worked to ensure quality guest facilities that attract visitors to our community. Finally, the division has worked to be Customer-Focused by developing positive working relationships with developers and landowners to improve communication and clarity by guiding applicants through the development process, assist them in navigating the City’s codes, specifications, and permit process and provides interdepartmental communication with the applicant.
The Historic Preservation Division strives to provide excellent customer service via assistance from preservation staff inperson, on-site, online, and in prompt responses to email and phone requests for information. The Historic Preservation goals outlined in the Preservation Master Plan promotes growth and improves the quality of life for residents and business owners within our city’s historic districts and throughout the historic built environment.
The Building Inspections Division contributes to the City’s strategic plan by improving customer service and communication. More resources have been placed on the City’s website that offer easy step by step instructions for certain types of projects as well as refinements to building permit applications to assist the customers. The demolition of unsightly dangerous buildings and addressing vacant structures though the Vacant Structure Registry Program is crucial in addressing blight. All these measures lead to an increased perception of safety, as well as better and more inviting neighborhoods for our citizens.
The Regulated Industries Division contributes to the City’s Strategic Plan goal to improve customer service by putting the right staff in place to provide our service and by updating applications and other documentation to be clearer and to improve the customer experience. The division also contributes to the increase economic prosperity of the community by removing or reducing as many barriers as possible between the business owner and the city services they need to succeed.
Community Development Administration
Total Full Time Equivalent Positions
PROGRAM MISSION
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.
Community Development Neighborhood Services
Full Time Equivalent Positions
MISSION
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.
- Started process for adopting International Property Maintenance Code (IPMC).
- Removal and disposal of over 40 shopping carts.
- Increased the number of proactive cases to 32%
SIGNIFICANT BUDGET CHANGES
Salary and benefit change to account for staff realignment and estimated vacancy savings. Increase in equipment and services for new technology that was implemented.
Community Development Development Services
MISSION
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
Development services completed updating the UDO section on Recommended Trees and Plants for projects requiring landscaping plans. UDO amendments also completed include how administrative adjustment appeals are handled, modernizing the code for electronic message board sign regulations, and a more streamlined process for those requesting variances from sign regulations.
Completed the City-Wide Housing Study.
Community Development Transportation
Program by Expenditure Category
Total Full Time Equivalent Positions
MISSION
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.
SIGNIFICANT BUDGET CHANGES
In FY 2021-22, 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. Those expenses are reflected in FY 2022-23 proposed budget in the Transportation org key.
Community Development
Historic Preservation
Full Time Equivalent Positions
MISSION
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.
ACCOMPLISHMENTS
- Continued public outreach/education with free autumn architectural walking tours in September, October, and November 2021.
- Hosted a series of in-person events celebrating National Historic Preservation Month, May 2022.
- Updated the preservation webpage.
- Updated the City Code to bring it into compliance with federal regulations.
Community Development Building Inspections
Total Full Time Equivalent Positions
MISSION
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
- Demolished 40% more structures than previous year and working toward a 50% increase in the coming fiscal year.
- Gained a 40% increase in residential repair permits on dangerous buildings, mainly due to the Vacant Structure Program’s implementation and registering.
- Increased gaining compliance of dangerous building structures to 45%.
SIGNIFICANT BUDGET CHANGES
Salary and benefit change to account for staff realignment.
Community Development Regulated Industries
MISSION
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 Community Development to the Health and Animal Services Department.
Community Development Grants
Expenditure Category
Full Time Equivalent Positions
4451)
SIGNIFICANT BUDGET CHANGES
In FY 2021-22, one-time grants using CDBG-CV funds ($607,507) and CARES funds ($321,000), along with corresponding expenses moved to the grant funds: COVTS to Grant Fund 015 and CDBG to the CDBG Fund, 008. Those expenses are reflected in FY 2022-23 proposed budget in the Transportation org key.
Community Development Community Development Block Grant (CBDG)
by Expenditure Category
by Fund
Total Full Time Equivalent Positions
MISSION
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.
ACCOMPLISHMENTS
- Updated CDBG/HOME webpage to be more user friendly
SIGNIFICANT BUDGET CHANGES
In FY 2021-22, one-time grants using CDBG-CV funds ($607,507) and CARES funds ($321,000), along with corresponding expenses moved to the grant funds: COVTS to Grant Fund 015 and CDBG to the CDBG Fund, 008. Those expenses are reflected in FY 2022-23 proposed budget in the Transportation org key.
Community Development HOME Grant
Full Time Equivalent Positions
MISSION
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.
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Health and Animal Services
Health and Animal Services
Director: Christina Heinen
Animal Services
Animal Shelter Environmental Services Health Services
Health and Animal Services
Full-Time Equivalent Employees
DEPARTMENT 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.
SIGNIFICANT OPERATIONAL CHANGES
Stood up the health side of the department during a pandemic
STRATEGIC PLAN CONNECTION
Customer-Focused: Improve customer service: continue to use social media to provide responses to customers/citizens
Financially Sustainable: Identify and capture funding for the Health Department
Quality: Identify strategies to improve and expand resources, such as Crisis Intervention Teams, for mental health needs
Quality: Enhance public health
Quality: Improve community outreach and good news stories
Health and Animal Services Animal Services
PROGRAM 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, and fees for services.
ACCOMPLISHMENTS
- Animal services officers handled 4,695 calls for service
Health and Animal Services
Animal
Shelter Use Tax
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 with a live-release rate of 93.9%.
- Continued a Trap, Neuter, Release (TNR) program that processed 218 cats
- Increased Facebook followers by 6,194 to 7,271.
Health and Animal Services Environmental Services
MISSION
Our mission is to promote general health and well-being as well as foster healthy and safe communities. Our specialists strive to incorporate not just policies but practices to reduce hazardous environments in our community
ACCOMPLISHMENTS
- Performed 2,200 inspections of permitted establishments
Health and Animal Services Health Services
MISSION
Our mission is to protect the health, safety, and welfare of our community using disease surveillance systems, community education, and maintaining partnerships in our community.
ACCOMPLISHMENTS
- Administered over 24,000 vaccines, utilizing staff and volunteers
- Received over $1 million in grants to support the department
SIGNIFICANT BUDGET CHANGES
- $300,000 in remaining ARPA funds allocation approved as a budget package
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Parks, Recreation and Tourism
Parks|Recreation|Tourism
Director: Morris Heide
Park Services
Athletic Fields and Courts
Cemetery
Maintenance
Historic Sites
Maintenance
Park Facilities
Maintenance and Security
Parks and Grounds
Maintenance
Parks and Grounds
Maintenance - PST
Right of Way
Maintenance
Recreation
Adventure Oasis
Water Park
Family Programs and Events
George Owens
Nature Park
Independence Uptown Market
Palmer Senior
Adult Center
Roger T. Sermon
Community Center
Truman Memorial
Building
Attraction Services
Historic Sites
National Frontier
Trails Museum
Tourism Marketing
Visitor Services and Promotions
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.
SIGNIFICANT OPERATIONAL CHANGES
New director named in October 2021
Combined part-time & seasonal positions into full-time positions to improve customer service
Fully implementing ROW maintenance program
Streamlined budget cost centers to more accurately reflect true costs of operations
Returning to full schedule, pre-Covid operations at recreation centers, NFTM & historic sites
STRATEGIC PLAN CONNECTION
The Department improves quality of life for residents and visitors through innovative use of facilities, parks and green spaces, and intentionally planned activities, programs, tours and historical education, all suitable for varying interests and age groups.
Department staff improves customer experiences and service through trend analyses, timely responses to requests and concerns, routine inspections of playground equipment and other amenities, regular mowing and maintenance schedules, and planned future renovation and replacement of displays, equipment and facilities to maintain a welcoming and attractive destination for visitors.
Note: Budgeted amounts for tourism fund do not match the budget ordinance as there were amendments to the budget at the time of the adoption reducing expenditures as follows:
Parks, Recreation, and Tourism Administration
MISSION
Administration 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 and events.
ACCOMPLISHMENTS
New director was named in October 2021.
Promoted 2 manager-level positions to assistant director level and eliminated both manager level positions
SIGNIFICANT BUDGET CHANGES
Combined personnel charges previously split among orgs into 1 org for efficiency and accurate reporting
Consolidated all ERP Interfund charges for the department into this administrative org
Added Fiscal Administrator to analyze revenues and expenses and assist with budgeting of dept funds
Parks, Recreation, and Tourism
Park Maintenance Administration
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 City-affiliated departments.
Parks, Recreation, and Tourism
Parks and Grounds Maintenance
MISSION
The Turf and Facilities Division is responsible for daily park maintenance operations including the cleaning and maintenance of picnic shelters and park restroom facilities, athletic fields and landscape bed maintenance, snow removal, and mowing and trimming in all City parks and recreation facilities.
ACCOMPLISHMENTS
Pruned 400+ trees throughout the park system
Cleared brush and trimmed trees around Dickinson Lake so it is now fully accessible for fishing
Installed new fence at Fairmount dog park
SIGNIFICANT BUDGET CHANGES
Moved 7 PRT Maintenance Worker II positions to 6049
Combined vacant seasonal positions into 2 new full-time positions
Parks, Recreation, and Tourism Cemetery Maintenance
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.
ACCOMPLISHMENTS
Participated in Wreaths across America - decorated 63 headstones
Straightened or re-set nearly 100 headstones
Continuous operation - averaging 100 burials/year
Parks, Recreation, and Tourism
Recreation / Facility Administration
SIGNIFICANT BUDGET CHANGES
Being consolidated with Parks Administration (6071) in FY 2022-23.
Parks, Recreation, and Tourism
Senior Adult Services
SIGNIFICANT BUDGET CHANGES
Being consolidated with Palmer Senior Adult Center (6043) in FY 2022-23.
Parks, Recreation, and Tourism
Roger T. Sermon Community Center
SIGNIFICANT BUDGET CHANGES
Being consolidated with Sermon Center (6048) in FY 2022-23.
Parks, Recreation, and Tourism
George Owens Nature Park
MISSION
George Owens Nature Park strives to promote, educate and encourage a love and curiosity of nature with all individuals, families, and organizations by creating a welcoming and safe environment to explore nature. This will be accomplished through a variety of group and self-learning exploration activities throughout the park and the City of Independence community to support our natural environment for future generations.
ACCOMPLISHMENTS
Completed Phase 1 hiking trail enhancements with installation of new benches, improved trail signage, bridge repair, installed new bridge over stream crossing, cleared and mulched Look Out Trail.
Resumed outdoor programs with Covid guidelines - Hummingbird Festival, Family Fishing Day, Dragonfly Days, etc. New snake and salamander exhibits, and enhanced childrens' area activities at DeWitt Center
SIGNIFICANT BUDGET CHANGES
Added 1 full-time PRT Maintenance Worker II position to reduce contractor expense
Moved personnel charges from 6044 into 6078
Parks, Recreation, and Tourism Wellness
SIGNIFICANT BUDGET CHANGES
Being consolidated with Sermon Center (6048) and Programs and Events (6044) in FY 2022-23.
Parks, Recreation, and Tourism
Park Facilities Maintenance & Security
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.
ACCOMPLISHMENTS
Cleaned up 31 unhoused camps
Repaired both falls at Waterfall Park
Cut down, relocated and decorated 4 trees for Mayor's Christmas lighting display Repaired roof and skylight at Palmer Senior Center
SIGNIFICANT BUDGET CHANGES
Moved personnel charges for 10 PRT Maintenance Worker II positions into other orgs to more accurately reflect costs
Parks, Recreation, and Tourism
Truman Memorial Building
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.
ACCOMPLISHMENTS
Combined vacant part-time positions into new full-time front desk position for improved customer services Filled vacant Recreation Coordinator position Increased facility security by adding additional cameras on exterior of building Completed major HVAC upgrades to facility
SIGNIFICANT BUDGET CHANGES
Moved personnel charges for Recreation Coordinator into this org from 6046
Parks, Recreation, and Tourism
Palmer Senior Adult Center
MISSION
The Palmer Center encourages the well-being of older adults in Independence by providing diverse senior adult programs and services including a daily meal program, fitness opportunities, education classes, recreational programs, and a wide variety of social needs.
ACCOMPLISHMENTS
Resumed daily lunch program on July 6th following Covid closure, serving nearly 900 hot meals each month.
Implemented home delivery of frozen meals during Covid and have continued this program with 3 routes, averaging delivery of just over 1000 meals each month.
Held Senior's Christmas Celebration with 159 tickets sold.
Resumed day trips and in-person classes and activities
SIGNIFICANT BUDGET CHANGES
Combined all personnel charges from 6076 into this org
Combined all grant funding into this org
Parks, Recreation, and Tourism Programs and Events
MISSION
The mission of Family Programs and Events is to develop programs, special events and activities throughout the Park system, public grounds and through community partnerships that help all individuals and families create positive memories; giving special attention to the development of youth and family programs, outdoor programs and special events.
ACCOMPLISHMENTS
Offered new and brought back existing programs with Covid guidelines - Enchanted Forest, Winter Solstice Torch-Lit Hike & Gingerbread House Lane, Popsicles in the Park, Moonlight Movies with ISA, Holiday Square Lighting, etc.
Partnered with National Park Service, Indep. Square Assoc., trail organizations, and other departments to conduct 2021 American Solar Car Challenge that highlighted the Santa Fe Trail and the City as an historic trail center. Partnered with Fire Dept. to train staff in fire extinguisher and CPR/AED use
SIGNIFICANT BUDGET CHANGES
Moved personnel charges to org 6078
Parks, Recreation, and Tourism
Adventure Oasis Water Park
MISSION
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.
ACCOMPLISHMENTS
Re-opened water park and splash pads following Covid guidelines
Repaired 1 water slide at AO
SIGNIFICANT BUDGET CHANGES
Moved personnel charges for 1 supervisor into this org
Parks, Recreation, and Tourism
Athletic Fields and Courts
MISSION
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.
Moved Recreation Coordinator personnel charges to org 6042
Parks, Recreation, and Tourism
Uptown Market
MISSION
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 Farmers and Crafters Markets, special events, recreation and fitness programs, and private group rentals.
ACCOMPLISHMENTS
Resumed in-person programs and events following Covid guidelines - Farmers Markets & Winter Farmers Market, Mayor's Prayer Breakfast, Holiday X-Press, facility rentals, etc.
SIGNIFICANT BUDGET CHANGES
Moved personnel charges for Recreation Coordinator and Center Attendants to this org for more accurate reporting
Parks, Recreation, and Tourism Sermon
Center
MISSION
The mission of the Roger T. Sermon Community Center is to provide an affordable and modern rental option for a variety of services including health and physical fitness opportunities, weddings, birthday parties, and business meetings, and advance cultural arts through community theatre performances.
ACCOMPLISHMENTS
Partnered with CSL for hotel voucher program during use as Warming Site
Best Little Arts & Crafts Show returned from Covid closure with over 100 vendors and nearly 1000 customers
All 3 theatre groups resumed activities following Covid closure
All fitness classes returned to full capacity, added 3 new classes, and added additional sessions to existing classes
Combined vacant part-time positions into 2 new full-time front desk positions for improved customer services
SIGNIFICANT BUDGET CHANGES
Combined personnel charges from 6077 into this org for more accurate reporting
Parks, Recreation, and Tourism
Parks & Grounds Maintenance
MISSION
The mission of Parks and Grounds Maintenance - PST is to mow, maintain and landscape City-owned property, including snow removal, as funded by the Park Improvement Sales Tax.
ACCOMPLISHMENTS
New org for FY 2022-23
SIGNIFICANT BUDGET CHANGES
Includes personnel charges and operating expenses for 8 Maintenance Worker II positions and 1 supervisor
Parks, Recreation, and Tourism
Non-Departmental
SIGNIFICANT BUDGET CHANGES
Moved into 6071
Parks, Recreation, and Tourism
Tourism Marketing & Promotions
MISSION
Tourism Administration oversees administrative, marketing, and historic preservation activities associated with the Tourism Division of the department.
SIGNIFICANT BUDGET CHANGES
Holding 1 position vacant to allocate additional funds for historic site maintenance projects
Moved partial personnel allocations for 4 positions into 6071
Parks, Recreation, and Tourism Museum Operations
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.
ACCOMPLISHMENTS
Reopened Museum to partial operations following Covid-19 closure
Participated in Missouri's Bicentennial Celebration
Completed RecTrac software upgrade and installation of new credit card readers
Upgraded facility computers and wi-fi
SIGNIFICANT BUDGET CHANGES
Added personnel charges for 6 full-time and 5 part-time positions
Parks, Recreation, and Tourism
Historic Sites
MISSION
The Historic Sites Maintenance division is responsible for daily maintenance operations, including mowing and trimming, landscape bed care, snow removal, litter and debris removal, holiday decorating, and basic repairs for all City-owned historic properties.
ACCOMPLISHMENTS
Vaile Mansion - Replaced windows and repaired north porch, sidewalk replacement begins in June Bingham-Waggoner Estate - Repaired 2nd floor wood rot, parking lot asphalt repaired Re-opened for public tours following Covid-mandated closures
SIGNIFICANT BUDGET CHANGES
Combined vacant part-time and seasonal positions to add 1 additional full-time Maintenance Worker II position
Parks, Recreation, and Tourism
Tourism Sales & Services
Expenditure Category
MISSION
Visitor Services and Promotions 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.
ACCOMPLISHMENTS
On-going promotion and marketing of attractions as they return to pre-Covid operations
SIGNIFICANT BUDGET CHANGES
Added an additional Multimedia Coordinator to design annual Visitor Guide in-house to reduce costs
Parks, Recreation, and Tourism Right of Way Maintenance
MISSION
The mission of Right-of-Way Maintenance is to provide landscaping and grounds maintenance for City-owned property and City-maintained right-of-way.
ACCOMPLISHMENTS
Updated mowing maps in Cityworks for more efficient routes
Improved appearance of major corridors
More responsive customer service
SIGNIFICANT BUDGET CHANGES
Operating expenses increased due to addition of a 2nd truck for transporting mowers and equipment
Reduced professional services due to an additional maintenance worker
Increase in internal services
Parks, Recreation, and Tourism Grants
SIGNIFICANT BUDGET CHANGES No longer in use.
Parks, Recreation, and Tourism Capital Projects
Projects for FY 2022-23
$1,992,000
Parks, Recreation, and Tourism Debt
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Finance and
Administration
Finance & Administration
Director: Bryan Kidney
Accounting
Procurement
Technology Services
Workers Compensation
Administration
Human Resources
Law
Risk Management
Finance and Administration
(4201, 0954201)
(4210, 0954210)
(0954212)
and Mail Center (4270, 0954240)
(4230, 0954230)
(4100, 0954100, 4150)
(4240, 0954240)
(4220, 0954220)
and Data Systems (4221, 0954221)
4058,
by Expenditure Category
22 headcount does not include positions previously allocated to other city departments.
DEPARTMENT MISSION
The mission of Finance & Administration is to provide leadership and direction for the City's internal operations and responsibilities so that all assets of the City are protected while providing effective and efficient support.
SIGNIFICANT OPERATIONAL CHANGES
- Proposed internal service fund model for better transparency
- Transitioned fully to outsourced based legal support
- Realignment of staffing to support network functions, applications, and cyber security
- Reorganized finance operations/reporting to provide better direct support citywide
- Added in-house retiree generalist to provide direct retiree support
STRATEGIC PLAN CONNECTION
Customer Focused: Continually update tools to better provide customer service
-Implement processes to better track and respond to citizen calls for service
Financially Sustainable: Full implementation of financial applications
-Putting tools directly into decision makers hands
-Adding transparency for governing body and citizens
-Creating long range financial forecasts
Finance and Administration Administration
PROGRAM MISSION
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
- Debt refinancing - WPC, Events Center, Crackerneck Creek, IPL
- Cash resiliency model implemented for utilities
- Achieved City's budget award which City had not received in 4+ years
- Assisted in transfer of fleet management to enterprise program
- Centralized Grant reporting
- Updated indirect costing method to a transparent process
Finance and Administration Accounting
*FY 22 headcount does not include positions previously allocated to other city departments.
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 (ACFR) builder
- Significant improvements to audit process.
- Received ACFR award
- Transitioned to Munis annual financial reports which resulted in zero reportable condition on internal audit
- Implemented Open Finance transparency program
SIGNIFICANT BUDGET CHANGES
- Moved budgeted professional services to Treasury and Debt org
Finance and Administration Treasury and Debt Management
Total Full Time Equivalent Positions
MISSION
The mission of Treasury and Debt is to ensure excellence in the management of its banking, investing, and financing services and the administration of unclaimed property.
SIGNIFICANT BUDGET CHANGES
- New department that absorbed FTE and budget from IPL Utility Accountant
Finance and Administration
Copy and Mailing Center
MISSION
Consolidated with Procurement (0954240) in FY 2022-23.
Finance and Administration Procurement
Total Full Time Equivalent Positions
MISSION
The mission of Finance Operations is to work collaboratively across the organization to ensure operations and core functions are performed according to best practices to the highest standards of customer service, accountability and efficiency
SIGNIFICANT BUDGET CHANGES
- Absorbed FTE and budget from Copy Center org key in FY 2022-23.
- Reorganization of Procurement to Finance Operations which includes absorbing Contract and Bid Administrator from IPL and A/R Specialist
Finance and Administration Human Resources
MISSION
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
- Successfully transitioned to a new brokerage service
- Expanded Wellness services to holistic approach to include mental and financial wellness
- Re-established Human Resources/Personnel Board
- Moved to paperless applications
- Successfully negotiated five of the seven labor contracts
- Implemented a 401a program for those contracts which eliminated sick leave payout
SIGNIFICANT BUDGET CHANGES
- Added an additional HR Generalist position, specifically dedicated to supporting the City of Independence retirees
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
- Outsourced to high level law service
Finance and Administration Technology Services
Total Full Time Equivalent Positions
*FY 22 headcount does not include positions previously allocated to other city departments.
MISSION
The mission of Technology Services is to provide information technology solutions within a secure and reliable environment and support City departments in delivering quality services to the community.
ACCOMPLISHMENTS
- Data Center Replacement
- Wi-Fi Replacement
- Acceptable Use Policy Development
- Major upgrade of RecTrac
- Public Safety System (new World) Upgrade - Software and Servers
- 2021 Digital Cities Survey Winner
- Cyber Security Tool Implementation
- Staff invited to present at the 2022 ESRI National Conference
SIGNIFICANT BUDGET CHANGES
- Additional resources for Cyber Security Engineer
- Centrally managing hardware and software purchases for all departments. Previously this was direct billed to departments.
Finance and Administration
Voice and Data Systems
Program by Expenditure Category
MISSION
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.
SIGNIFICANT BUDGET CHANGES
- Migrating from legacy telephone system to a modern unified communication system - Motorola maintenance
Finance and Administration Enterprise Resource Planning & GIS
Expenditure Category
Program by Org Key
Total Full Time Equivalent Positions
MISSION
Provide innovative GIS-centric solutions within a secure and reliable environment in order to support City departments in delivering quality services to the community.
ACCOMPLISHMENTS
-Cityworks Upgrade
- Cityworks/ Back to Basics Alignment (automated routing, survey, reports)
SIGNIFICANT BUDGET CHANGES
- Update position titles to match work being performed and add an IT Supervisor position
Finance and Administration
Workers' Compensation (092)
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. 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.
ACCOMPLISHMENTS
-Reduced Worker's Compensation reserve by millions -Successfully kept Worker's Compensation excessive coverage at $1.5 million
Finance and Administration Risk Management
(093)
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. 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.
ACCOMPLISHMENTS
- Settled several large claims against City
SIGNIFICANT BUDGET CHANGES
- Achieved lower renewal costs on property insurance by splitting utility and non-utility coverages.
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Director: Lisa Reynolds
Storm
Storm Water Permit Compliance Facilities
Municipal Services
Department by Expenditure Category
*In FY 2021-22, FTE was restated to include temporary, intern, and non-departmental positions.
DEPARTMENT MISSION
The mission of the Municipal Service Department is to provide quality, reliable, and responsive public services for the Independence community. The Department must proactively and reactively maintain City infrastructure such as streets, facilities, sanitary sewer, stormwater mitigation, and wastewater treatment. Additionally, the Department is dedicated to public health and environmental protection through the enforcement of local, state, and federal laws. Ensuring a motivated and professional staff is essential to the success of the Department.
SIGNIFICANT OPERATIONAL CHANGES
Transitioned to the Enterprise lease program for a large portion of the city fleet
Began proactive debris pickup activities with contractor (ARPA funds)
Implemented new street sweeping program focusing on both water quality and beautification
STRATEGIC PLAN CONNECTION
Goal: Improve customer Service and communication
Transitioning to a single department phone number to field calls for all divisions to enhance the customer experience by decreasing the number of transfers required to put them in contact with the right person
Goal: Ensure City finances are stable and sustainable
Transitioned to the Enterprise lease program for a large portion of the city fleet
Planning next cost of service study
Working to implement equipment replacement accounts to control cost and manage budget impact of large projects
Goal: Achieve livability, choice, access, health, and safety through a quality-built environment
Design and construct projects that enhance major corridors and provide alternative modes of transportation
Work with On a Roll committee to implement recommendations
Implement pavement preventative maintenance program to help improve road condition
Use data to determine streets with greatest need for overlay
Improve street lighting and sidewalks in priority locations
Ensure Complete Streets policy is implemented during all new construction and renovation
Evaluate space and maintenance needs for city buildings and develop a long-term strategy for needed improvements
Work with contractor and staff to remove large debris from the ROW
by Expenditure Category
Municipal Services Administration
Equivalent Positions
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.
by Expenditure Category
Municipal Services Engineering
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.
ACCOMPLISHMENTS
SIGNIFICANT BUDGET CHANGES
- Addition of 3.0 FTE for SSES program ($184,804), to mitigate clear water from entering sewage collection system.
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.
ACCOMPLISHMENTS
Implement new street sweeping program
SIGNIFICANT BUDGET CHANGES
Added a tack oil trailer to provide better response to required street patches/repair work
Municipal Services
Storm Water Operations & Maintenance
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.
SIGNIFICANT BUDGET CHANGES
Added 2.0 FTE's to deal with the ever-increasing number of required system repairs
Municipal Services
Central Garage (Internal Service Fund)
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. 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.
Municipal Services Sanitary Sewer
*In FY 2021-22, FTE was restated to include temporary, intern, and non-departmental positions.
DEPARTMENT MISSION
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.
Municipal Services Sanitary Sewer Administration
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.
Municipal Services Sanitary Sewer
MISSION
The mission of the Facilities division is to ensure reliable operation of wastewater collection and treatment systems through preventative and predictive maintenance practices.
Municipal Services Sanitary Sewer
Treatment Facilities
MISSION
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
SIGNIFICANT BUDGET CHANGES
- Increased cost of hydrated lime supply ($320,000) and professional services ($82,000).
Municipal Services Sanitary Sewer
Collection System Maintenance
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
Added 2 FTE's dedicated to the construction crew
Municipal Services Sanitary Sewer Environmental Services
MISSION
The mission of the Environmental Services program is to inspect, sample and analyze industrial sewage discharges to determine compliance with National Pretreatment regulations.
Municipal Services Sanitary Sewer
Inter-Jurisdictional Agencies
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 ($830,740)
Municipal Services Sanitary Sewer
Non-Departmental
MISSION
Provides funding for department-wide activities not attributable to one single sewer program.
Municipal Services Capital Projects
Municipal Services Debt
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Policy and Leadership
Office of the City Manager
DEPARTMENT MISSION
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 City Manager
PROGRAM MISSION
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.
ACCOMPLISHMENTS
The City Manager’s Office has begun the initial implementation of the City's Values Program. Staff has been actively working together to define what our principles and guiding lights will be. The City Manager's Office has been actively working with staff to designate ARPA funds to different projects, including the Police pay plan. We have continued to sustain City services, programs, and quality response in our second year of a global pandemic.
* Excludes headcount that is allocated to other departments.
Office of the City Manager
Public Information Office
MISSION
To tell the many stories of Independence and engage our community while guided by the City’s strategic plan.
ACCOMPLISHMENTS
In the 2021-22 Fiscal Year we expanded our team to include the Public Education and Communication Outreach Coordinator, as well as seeing the full impact of the Digital Content Specialist. With these two positions we continue to grow and expand the content, materials, and videos produced for the city further improving our engagement with citizens.
SIGNIFICANT BUDGET CHANGES
This year's budget focuses on staff environment, training, and performance. Budget packages include equipment, training, and computer replacement to ensure Communication's staff have the equipment, resources, and training they need to serve the Citizens of Independence.
* Excludes headcount that is allocated to other departments.
Mayor and City Council
Mayor: Eileen Weir
City Manager
Management Analyst
Office of the City Council
Office of the City Clerk
Offices of the Mayor and City Council
DEPARTMENT MISSION
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
Offices of the Mayor and City Council
Office of the Mayor
MISSION
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
City Council
MISSION
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
MISSION
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.
SIGNIFICANT BUDGET CHANGES
The number of records requests processed and tracked by the City Clerk’s Office has increased exponentially since the process change in September 2021.
FY 20/21: 381
FY 21/22(to date): 1,999
760 of these requests are a collaborative effort of processing the requests by IPD and tracking by the City Clerk’s Office.
ACCOMPLISHMENTS
In working with all departments, the City Clerk's Office has streamlined the records request process, and become more consistent when it comes to open records requests. Our current processes are more closely aligned with the Missouri Sunshine Law and the Independence City Code.
Additional tracking has begun regarding demographic information for boards and commissions applications and appointments, so the city can identify and recognize the diversity among of our various boards and commissions.
STRATEGIC PLAN CONNECTION
Connection to the Strategic Plan is being Customer Focused. Updates to the records request process has resulted in more effective and efficient responses to citizens and has created a single hub for obtaining public records.
Offices of the Mayor and City Council Management Analyst
MISSION
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.
SIGNIFICANT BUDGET CHANGES
The management analyst salary has estimated savings due to a current vacancy. If the position is filled sooner, the budget will be allocated at that time.
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Emergency Medical Services
Fire Operations
Training and Professional Development
Chief: Doug Short
Programs
Department by Expenditure Category
Department by Fund
DEPARTMENT MISSION
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 riskreduction strategies in an efficient and effective manner.
SIGNIFICANT OPERATIONAL CHANGES
After completion of a Community Risk Assessment and Standard of Cover, the Fire Department will establish a Master Plan for moving our department in forward direction to meet the needs and services of our City.
STRATEGIC PLAN CONNECTION
Providing the Master Plan will achieve the Goals and Objectives of the Independence Strategic plan in increasing perception of safety and improving public infrastructure and facilities.
Fire Administration
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.
ACCOMPLISHMENTS
Assisted in Sales Tax needs determination
SIGNIFICANT BUDGET CHANGES
Retiree health insurance increased and was consolidated to this org key for the General Fund portion of the department costs.
Fire Operations
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
Fire Emergency Medical Services
Program by Expenditure Category
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 can provide basic and advanced life support measures to the citizens.
by Expenditure Category
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.
Program by Expenditure Category
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.
Training and Professional Development
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
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
MISSION
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.
ACCOMPLISHMENTS
Continue to meet Capital Outlay and other needs, per the Sales Tax intent.
SIGNIFICANT BUDGET CHANGES
Next Fiscal year (22-23) will be increased to one-half percent sales tax and be used for Capital Outlay, CIP and Personnel.
Municipal Court
Presiding Judge: Garry Helm
Municipal Judge
Municipal Court Administrator
Municipal Court
DEPARTMENT 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, and orders of commitment; and provides other services as prescribed by the Charter of the City of Independence, Missouri and applicable State Statutes.
Police
Chief:AdamDustman
by Expenditure Category
DEPARTMENT MISSION
The mission of the Independence Police Department is 1) to protect the life, individual liberty, and property of all people within the City of Independence; 2) to lower crime and disorder in the community; 3) to develop and maintain a positive relationship with members of the community; and 4) to foster a positive working environment for police employees.
SIGNIFICANT OPERATIONAL CHANGES
* Removed one Police Major position and added a Deputy Chief position for the Support Services Bureau
* Added a Community Services Sergeant position (funded by the Use Tax)
* Added a Cadet Coordinator in the Training Unit and an Internal Affairs Officer (Professional Standards) by moving existing vacant positions
* The Police Department instituted a retention bonus and hiring incentive this year to retain current officers and help attract more qualified applications. Additionally, a significant salary increase was negotiated for sworn personnel to make IPD more attractive to prospective applicants. These increases, plus an anticipated 4% increase in July 2022 for sworn personnel, can be seen in the increased personnel costs for FY 22/23.
STRATEGIC PLAN CONNECTION
The Police Department remains committed to finding ways to operate in the most efficient and effective manner. This will include a department-wide review and evaluation in FY 2022-23 to ensure we are structured to remain Customer Focused.
We will continue to be good stewards of the Police Department funds to find new and innovative ways to stretch budgeted dollars for maximum efficiency. This will ensure we remain Financially Sustainable.
At the heart of the Police Department's mission is public safety. We will continue to look at new and creative ways to combat crime and disorder in our city, while increasing the perception of safety for our citizens. This will ensure we remain a Quality Focused department, dedicated to the needs of the community we are proud to serve.
FTE TABLE
Note: FY 2021/22 changed six sworn Police Officer positions to six civilian Cadets to create a pool of future Police Officer candidates. When 230 sworn positions become filled, the Police Department will need to change the civilian Cadet positions back to sworn, so we can reach the 236 sworn FTE positions that were made possible with the Use Tax.
Police Chief of Police
PROGRAM MISSION
The Office of the Chief of Police is responsible for the overall operation and administration of the department. Responsibilities include technology and fleet management, budget and accounting processes, inventories, professional standards, and recruitment
ACCOMPLISHMENTS
- Transferred a Police Officer position here to add a Professional Standards Officer position. This position will work to increase accountability, transparency, and expedite Internal Affairs investigations.
- Eliminated a Major position and added a Deputy Chief position to re-align the administration of the department.
SIGNIFICANT BUDGET CHANGES
- For FY 22/23, all Workers Compensation funding has been moved from individual cost centers to this cost center. This represents an increase of $1,037,000 for this line item alone.
- Retiree Health Insurance (5106) has increased $95,000 and Insurance & Bonds (5207) has increased $41,000.
- Professional Services (5226) and Other Services (5240) have increased due to significant increases in psychological services and damage claims, respectively.
Program by Expenditure Category
Police Grants
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.
SIGNIFICANT BUDGET CHANGES
The 4512 cost center was previously used for city subsidies of grant positions. These amounts are now budgeted within each position’s home cost center, while the portion covered by grants remains in cost center 4550.
by Expenditure Category
Police Training
Total Full Time Equivalent Positions
MISSION
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 using 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
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.
ACCOMPLISHMENTS
Added a Report Writing room to the basement of headquarters to allow officers a place to complete reports, online training, and administrative tasks.
Assigned the evening Mental Health Co-Responder to the report writing room. This allows her to triage calls for service while engaging with Patrol Officers.
Added a Domestic Violence Co-Responder to assist with DV calls and conduct follow-up with victims. This was made possible through a COMBAT grant received by Hope House.
SIGNIFICANT BUDGET CHANGES
- Transfer in of $698,474 reflected in Salary expenses, from Police Use Tax (Fund 018, org 4571) to support salary increases.
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.
ACCOMPLISHMENTS
- Utilized Sales Tax funds to purchase new Genetec audio/video equipment for Investigations' interview rooms to remain consistent with the PD/City platform. Currently waiting on installation of equipment.
- Purchased upgrade to Cellbrite Software to aid in downloading and processing of cellular phones and related data.
- Relocated the Drug Enforcement Unit to the Jackson County Drug Task Force. This will serve as a force multiplier as well as defray some of the personnel costs for four detectives.
- Purchased two new GPS tracking devices.
- Purchased two trucks out of Sales Tax funds for the Street Crimes Unit to utilize for vehicle containment (pinning).
Total Full Time Equivalent Positions
Police Tactical Operations
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.
ACCOMPLISHMENTS
Purchased additional batteries and supplies for the department drones to allow for increased field operation (time in the air).
With assistance from government ARPA funds, IPD was able to purchase ballistic helmets for all sworn personnel and 30 sets of full riot gear for initial Mobile Field Force (MFF) deployment. MFF is the initial response to civil unrest or riot incidents. After seeing the riots in other jurisdictions, it was apparent that we needed to update our equipment and training in this area.
Total Full Time Equivalent Positions
Police Special Enforcement
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.
- Acquired mandatory subscription/updates for Crash Data Recorders (CDR) to aid in crash investigations.
- Renewed maintenance on FARO Crash Scene diagramming software.
Police S.T.E.P Program
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.
ACCOMPLISHMENTS
Applied for and received continued grant funding from COMBAT to fully fund the two School Resource Officers assigned here.
- Officers taught four classes to ISD 5th and 8th graders.
- Officers will attend the annual state training conference.
SIGNIFICANT BUDGET CHANGES
- The two officers previously assigned here were veteran officers who both retired during FY 21/22.
Total Full Time Equivalent Positions
Police Community Services
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).
ACCOMPLISHMENTS
Applied for and received continued grant funding from COMBAT for the S.T.E.P. program and to partially fund School Resource Officers in this cost center.
- Purchased supplies for community events (trunk-or-treat, ISD parade).
Added a Community Services Sergeant position to perform first line supervision within the unit (funded by the Use Tax).
Police Crime Scene Unit
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.
ACCOMPLISHMENTS
- Utilized 2020 DOJ grant funds to purchase a LEICA 3D imaging scanner for diagramming crime scenes.
- Hired one CSI technician to fill a vacancy.
Two CSI technicians submitted applications for Level 1 Certification through the International Association of Identification (IAI).
Police Detention Unit
Total Full Time Equivalent Positions
MISSION
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. Long-term prisoners are transferred and incarcerated at an outside facility.
ACCOMPLISHMENTS
Upgraded camera system to allow for prisoner accountability and monitoring and purchased a WiFi tablet with microphone. Both will also be used to administer the video arraignment process.
Installed three padded de-escalation cells and purchased a new mobile restraint chair to help with combative prisoners, while reducing the risk of injury to personnel.
- Added bunk beds to 6 holding cells to increase detention capacity.
Utilized DOJ grant to purchase and install a Guardian Property & Evidence Packaging System to improve tracking and storage of property and evidence in the jail, as well as improve sanitation and reduce risk of spreading illnesses in the jail.
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.
ACCOMPLISHMENTS
- Fingerprinted all agency personnel to become compliant with new State and Federal law requirements.
- Passed Missouri State Highway Patrol MULES audit with an "outstanding" rating.
- Implemented a new Watchguard Program (security officer licensing) through CityWorks.
- Reallocation of staff and duties was conducted to overcome unit vacancies.
Police Communications Unit
Total Full Time Equivalent Positions
MISSION
The Communications Unit receives emergency and non-emergency telephone calls from the public and routes them to the appropriate responder: Fire, Police, or AMR.
ACCOMPLISHMENTS
- Continued efforts to fill Telecommunicator vacancies. Currently down to five vacancies.
- The unit successfully handled an increase of 24,500 phone calls compared to 2020.
- Response time improved to answering all 911 calls within 60 seconds.
- Received “Outstanding Performance in a Critical Incident” award from Mid America Regional Council (MARC).
- Received “Team of the Year” award from Missouri Public Service Communications Conference (MPSCC).
Police Sales Tax Program
MISSION
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.
ACCOMPLISHMENTS
The Police Department completed the final year of a 5-year replacement plan to upgrade all portable radios. We are currently working on implementing the Regional AES encryption changeover of radios in June 2022.
New audio/video recording equipment has been ordered for five (5) Interview Rooms. Equipment should arrive and be installed by fiscal year end.
Three Hybrid Police Explorers were ordered this fiscal year. Due to manufacturing delays, it may be 2023 before they arrive. Once implemented, the department will be able to evaluate fuel and maintenance costs in comparison to the standard Police Explorers.
SIGNIFICANT BUDGET CHANGES
There is a decrease to the overall amount budgeted for PST accounts in FY 2022/23 due to the changeover of portable radios now being complete, and the transfer of uniforms and equipment expenses for new hires to the Use Tax.
Police Use Tax Program
MISSION
Revenues generated from the Proposition P tax will hire certified and non-certified police officer candidates.
ACCOMPLISHMENTS
In November 2021, Independence voters approved the expansion of the Use Tax to include equipment. This allowed the department to utilize this Tax to not only hire sworn officers but fully train and equip them as well.
Six (6) Hybrid Police Explorers were ordered this fiscal year. Due to manufacturing delays, it may be 2023 before they arrive. Once implemented, the department will be able to evaluate fuel and maintenance costs in comparison to the standard Police Explorers.
SIGNIFICANT BUDGET CHANGES
- Budget has been increased to include personnel costs for all 30 positions as well as uniforms and equipment.
Transfer out of $698,474 reflected in salary expenses, from Police Use Tax to Police Patrol (General Fund, org 4532) to support salary increases.
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Power and Light
by Expenditure Category
and
DEPARTMENT MISSION
The mission of Power and Light is to provide reliable, safe and cost-effective electricity to the customers of Independence.
SIGNIFICANT OPERATIONAL CHANGES
Re-establishment of the Deputy Director position.
Succession Planning continues to be problematic.
Significant employee turnover, due to retirements and resignations, continues to be an issue.
Supply chain issues continue to be significant in higher pricing and delays in receiving materials.
STRATEGIC PLAN CONNECTION
Customer Focused Goal:
Fostering More/Better Communications with Citizens in Additional Venues
Hosting Town Hall
Financially Sustainable Goal:
Negotiated 3-Year Union Agreement
Refinancing of Bonds for Cost Saving
Developing Options for Future Generation/Capacity Needs
Growth Goal:
Expanding Transmission and Distribution Capabilities to Support Growth on the East Side of Town
Quality Goal:
Assisting with Corridor Improvement Plans
Power and Light Administration
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.
Developing options for future generation/capacity needs
- Negotiated 3-year union agreement
- Hosting town hall meeting
SIGNIFICANT BUDGET CHANGES
Re-establishment of the Deputy Director position.
Power and Light Finance and Accounting
MISSION
The mission of Finance and Accounting is to ensure all financial and statistical records of the utility are kept and reported in accordance with governmental best practices and regulations so that the results are transparent to rate payers.
ACCOMPLISHMENTS
- Refinancing of Bonds for Cost Savings.
SIGNIFICANT BUDGET CHANGES
- Contract and Bid Administrator position moved to city-wide Finance division.
Power and Light Communications
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, security cameras, traffic signals, mobile radio, wireless, microwave, SCADA/EMS, and Relay Protection communication links.
ACCOMPLISHMENTS
- Traffic signal replacement at Sterling & Winner after storm damage for SW & NE Signals
- Traffic controller upgrades to Econolite traffic controllers (12 locations)
- Fiber install & splicing in support of IPD's LPR project at 39th & Arrowhead & Main St. locations
- Substation K security camera installation project
- Traffic cabinet TS2 Swap at Little Blue Parkway and Valley View
- Upgrade school signals at Bryant Elementary with new poles & bases
- Fiber cable installs for Rock Creek and Bundschu Solar Farms
SIGNIFICANT BUDGET CHANGES
- Increase in Communication Services to provide City internet services ($25,000).
Power and Light Engineering
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.
ACCOMPLISHMENTS
- Rebuild of Substation K is scheduled to be completed by May of 2022
- Rebuild of the Substation E to Substation F 69kV line will be 2/3 complete by May of 2022 and totally complete by May of 2023
- The 2022 O&M budget is projected to be about 10% under budget
- Staff serves on the state board of Missouri Society of Professional Engineers
- Staff serves on the National Committee to prepare the Professional Engineers fundamental engineers’ examination
SIGNIFICANT BUDGET CHANGES
- O&M budget has been reduced by over 10% to assist in balancing the budget.
- Engineering's portion of the capital budget will be sensitive to the development of NorthPoint east side of town - when load develops, new transmission lines and a new substation will be required, causing higher capital budget expenditures.
Power and Light Environmental Health and Safety
MISSION
The mission of the Environmental Health & Safety Division is to ensure regulatory compliance through planning, auditing, training, reporting, and emergency response in order to minimize injuries, accidents and environmental impacts.
ACCOMPLISHMENTS
- Completed the Groundwater Sampling and Analysis Plan and 2 quarterly rounds of the permit-required long-term groundwater monitoring around the former CCR Impoundments at the Blue Valley Power Station.
- Secured Renewal of the National Pollutant Discharge and Elimination Permit for the Blue Valley Power Station from the Missouri Department of Natural Resources.
- Secured the Part 70 Air Permit Renewals for the six generating turbines at Substations H, I and J.
- Division serves on internal & external committees - COI Employee Engagement Committee, IPL Health & Safety Advisory Committee, IPL T&D Safety Committee & Edison Electric Institute's National Electric Highway Coalition
- Includes additional funds for the continued monitoring around the Blue Valley CCR Impoundments
- Includes additional funds to secure multiple environmental operating permits covering air, water and wastewater for the new generating units at Substation A (Truman Energy Center)
- Includes additional funds to expand the successful FR Clothing Account Program (Tyndale Program) to include Production & Utility Field Service personnel
Power and Light Meter Reading
MISSION
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.
ACCOMPLISHMENTS
- Purchase of all new meter reading hand-help computers
- Hiring of a new Meter Reader Supervisor
SIGNIFICANT BUDGET CHANGES
- FTE includes 2.0 temporary meter readers
Power and Light Production
MISSION
The mission of Production is to maintain and operate power production equipment so that electricity is generated safely, efficiently and reliably when called for by the Southwest Power Pool.
ACCOMPLISHMENTS
- Completed major repairs: H-6 rotor blade replacement and bearing oil leak; J-2 gear box rebuild.
- Met milestones in major repair of H-5 electrical fault, anticipate project completion scheduled early FY23.
SIGNIFICANT BUDGET CHANGES
No significant changes overall, however, worked to realign charges between accounts based on newly provided category descriptions. This caused some line items (such as professional services) to look larger in comparison to past budgets.
Power and Light Project Development
SIGNIFICANT BUDGET CHANGES
The Project Development Division has been eliminated and all expenses disbursed to other divisions.
Power and Light Purchased Power
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. Provide Cyber Security oversight and internal audit for IPL industrial control systems. Represent City interests with Federal, Regional and local regulatory organizations.
ACCOMPLISHMENTS
- Completed successful full NERC audit for 3-year period
- Mitigated issues found in internal audit process
- Division serves on several MRO Groups, TAPS Small Entity Group and NERC/NAESB Committee, SPP Reliability Compliance Advisory Group and Security Advisory Group, NERC Electricity-Information Sharing and Analysis Center and the City's Technical Services Cybersecurity Advisory Committee
SIGNIFICANT BUDGET CHANGES
- Return to face-to-face national meetings will increase travel budget
- Possible shortage of internal engineering resources may require consulting services
Power and Light Support Services
MISSION
The Support Services division is responsible for working with the public and local businesses and administers the rebate program.
ACCOMPLISHMENTS
- Support Services has ensured through various partnerships and forecasting our employees have the vehicles and inventory they need to accomplish their daily duties safely.
- Consistent reading meters to ensure customers are billed in a timely manner
- Streamlined processes to effectively work remotely during COVID-19
- Received Smart Energy Provider Award from the American Public Power Association for being a leader in providing energy efficient, sustainable electric service while prioritizing customer experiences, reliability, and affordability.
- Received Excellence in Public Power Communications Award from the American Public Power Association recognizes excellence in raising awareness of public power and telling the public power story in three categories - Web and Social Media, Video, and Print and Digital
- Division serves on the APPA Executive Board for the RP3 Committee, APPA Smart Energy Program Executive Committee and the MPUA Board
Power and Light System Operations
MISSION
Responsible for the 24/7 monitoring and control of the City's high voltage electrical system. Major areas of responsibility include dispatching of the generation resources, operation of the transmission system, operating and maintaining technology to support Department operational software, and regulatory cyber security/reliability compliance efforts in an efficient, cost effective, and reliable manner. Dispatching of crews in an efficient manner to address customer electric service issues.
ACCOMPLISHMENTS
- 2021 NERC Cyber Security/Operations & Planning Audit preparations and mitigation of identified items
- Substation K SCADA Checkout – SCADA Point changes associated with the Transformers and Switchgear replacement.
- Hiring new staff (7) and training to replace retirees - EMS Coordinator, System Operators (3), Trouble Dispatchers (2), Energy Markets Coordinator
- Security Appliance Installation/Replacement - Installation of 11 new firewalls to protect Operational Technology networks.
- Perform Cyber Security Vulnerability assessment and mitigate identified vulnerabilities to enhance security of SCADA/EMS and Support System environment.
- Significant employee turnover, due to retirements and resignations, continues to be an issue
- Succession Planning continues to be problematic
- Division serves on many Southwest Power Pool Boards & Committees, as well as, Dogwood Management Committee, Missouri Public Utility Alliance Broadband Committee, OSI Cyber Security Discussion Group, OSI SCADA User Discussion Group, City Differed Compensation Committee, City Employee Engagement Committee, and City Employee of the Month Committee
SIGNIFICANT BUDGET CHANGES
- Much of System Operations budget is IT related, either software maintenance or hardware, vendors have indicated we should expect between 3-7% cost increases
Power and Light Transmission and Distribution
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.
ACCOMPLISHMENTS
- The Substation Battery project has been completed
- Major progress has been made on the Substation E to Substation F 69kV line project
- Received the Tree Line USA Award which recognizes public and private utilities for practices that protect and enhance America’s urban forest as well as delivering safe and reliable electricity while maintaining healthy community trees.
SIGNIFICANT BUDGET CHANGES
- Reduction in expenses for locating services and desert storm cabinet repairs
- Additional funds added to the Line Clearance budget because of increasing labor cost
Power and Light Utility Field Service
MISSION
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.
ACCOMPLISHMENTS
- Staff were able to provide services despite staff shortages due to COVID-19.
- Hiring of a Customer Operations Supervisor
Power and Light Vehicle Maintenance
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.
ACCOMPLISHMENTS
- Completed purchase of a Digger Derrick and 2 Aerial Bucket Trucks - Supply chain issues continue to be significant in higher pricing and delays in receiving materials
- Division has ensured through various partnerships and forecasting our employees have the vehicles they need to accomplish their daily duties safely.
Power and Light Warehouse and Stores
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.
ACCOMPLISHMENTS
- Supply chain issues continue to be significant in higher pricing and delays in receiving materials - Division has ensured through various partnerships and forecasting our employees have the inventory they need to accomplish their daily duties safely.
Power and Light
Non-Departmental
MISSION
Provides funding for City and department wide activities not attributable to one single power and light program.
SIGNIFICANT BUDGET CHANGES
- FY21 Other Operating Expenses include one-time customer utility rebate totaling $11,196,400
- Salaries and Benefits expenses includes additional FTE support and operating expenses from other departments - Finance and Administration and Technology Services citywide FTE moved to interfund charges account lowering FTE
- Interfund charges for ERP, Finance & Administration and Technology Services citywide consolidated to this org key.
- Building allocations changed citywide for this upcoming fiscal year
Power and Light Capital Projects
$5,305,000
Power and Light Debt
Director:
DEPARTMENT MISSION
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.
SIGNIFICANT OPERATIONAL CHANGES
No significant operational changes are planned or anticipated.
STRATEGIC PLAN CONNECTION
Customer Focused: Implement customer service training of all front-line employees to ensure the equitable treatment of all customers.
Financially Sustainable: Existing rates provide adequate revenue to meet or exceed needs. Growth: Existing infrastructure is in place to meet current and future development. Quality: Expand Water Main Replacement Program.
Water Administration
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.
ACCOMPLISHMENTS
- Expanded Engineering staff to meet demands of the Water Main Replacement Program and facilitate completion of additional Capital Improvement Projects.
SIGNIFICANT BUDGET CHANGES
No significant budget changes for this Org.
Water Field Service
MISSION
The mission of the Water Field Service Division is to install, maintain and disconnect meters for over 49,452 customers so that consumption levels are accurate and service line leaks can be identified for repair.
ACCOMPLISHMENTS
- 15-year meter replacement program continued with increase in the number of meters changed now that COVID restrictions have been removed. Completed 921 meter changes; 620 of those meters were due to age.
- Completed 489 service line inspections for completed repairs.
- Completed 116 new taps for water service.
SIGNIFICANT BUDGET CHANGES
- Personnel: Correction made for Supervisor position that was incorrectly shown in 4840
- Capital Outlay: Replacement of a Service Van (Asset #4314)
Water Customer Service
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.
ACCOMPLISHMENTS
- Finished implementation of the Smart Safe and electronic check scanning to streamline internal cash handling processes.
- Configuration and implementation of new cash register receipting for utility payments will be completed by the end of the fiscal year
- Worked with local agency to become a partner for Low Income Household Water Assistance Program (LIHWAP) funding to assist customers paying utility bills.
- Transitioning employees safely back into the office from a work from home environment.
SIGNIFICANT BUDGET CHANGES
- Personnel: Addition of two new Account Information Representatives (AIRs)
- Professional Services: postage for utility billing moved from 6540 Non-Departmental this FY (21-22) to 4822, and adding additional increase for current postage rates
- Capital Outlay: office furniture for two new AIRs
- Buildings Clearing Expense for Water Customer Service IUC Building Rental allocation (set by Finance)
Water Production
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.
ACCOMPLISHMENTS
- Rehabilitated the Van Horn Reservoir, which is a 2-million-gallon storage reservoir. The reservoir received a new roof, overflow, vents and drain structures.
- Upgraded the software and hardware for the Courtney Bend Water Plant Supervisory Control and Data Acquisition (SCADA) system. This will increase reliability and security for the system used to control the water treatment process and remote locations.
SIGNIFICANT BUDGET CHANGES
- Supplies: The cost of treatment chemicals and supplies has increased dramatically. ($400,000+)
- Capital Outlay: Purchase of a tractor in place of an annual lease.
Water Transmission and Distribution
MISSION
The mission of the Transmission and Distribution Division is to engineer, construct, and maintain 766 miles of water main pipe so that water is distributed to the customers with consistent pressure and minimal loss of treated water.
ACCOMPLISHMENTS
- Tested and flushed all fire hydrants in the system.
- Repaired or replaced hydrants as needed.
- Repaired water main leaks and breaks as they occurred and completed the associated site restorations.
- Began developing a water service line inventory that will need to be provided to the public in October 2024 as part of the EPA's Revised Lead and Copper Rule.
SIGNIFICANT BUDGET CHANGES
- Professional Services: Replacement of Underground Fuel Tank Monitoring System
- Capital Outlay: Replacement of Service Truck (Asset #3862)
- Capital Outlay: Replacement of Dump Truck (Asset #4153)
- Capital Outlay: Replacement of Backhoe (Asset #4242)
Water
Non-Departmental
MISSION
Provides funding for City and department wide activities not attributable to one single water program.
Water Capital Projects
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General Fund Non-Departmental
This cost center has 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 Non-Departmental
MISSION
This cost center has 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.
Community Engagement
The purpose of Community Engagement is to provide funding for various civic, government, and economic development partnerships that are not department specific. This org key was formerly known as City Memberships. These General Fund expenditures are managed by the City Managers' office.
Staywell Health Fund
Internal Service Fund
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. This fund is used to account for the costs of the City's self-insured healthcare plan. The salary and benefits budget reflects the city portion of the Health Savings Accounts.
Capital Improvement Program 2022-2028
Planning Commission Memo
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 one-time 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 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 139 identified projects with a total cost of $192.8 million, including 66 active projects that are either construction or undergoing planning/design. The category with the largest number of active projects in the next two years in the Municipal Services Department with 35 projects. For all projects, estimated FY 2022-23 expenditures total approximately $17.4 million and FY 2023-24
expenditures total approximately $20.1 million. The largest projects in FY 2022-23 include the Annual Pavement Preventative Maintenance Overlay program at $4,600,000 and the Springbranch Garage Complex at $4,250,000.
Funding for CIP projects are derived from various sources including General Fund, Federal and State grants (CMAQ, STP and TAP), other debt, Parks and Recreation Levy, 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 2022-23 are the various sales taxes followed by the Power and Light fund.
Fiscal Year 2022-2023 Highlights
• Fire Department projects include the annual pumper replacement program and replacement of other fire apparatus past their service life.
• Police Department projects include their vehicle and equipment replacement program.
• Parks and Recreation projects includes replacement of the outdated tourism wayfinding signs that are currently decaying with rust. The new signs will match the new City branding. A Community Center Improvement project that includes a new gym floor for the Palmer Senior Center, and replacing the roof, HVAC, and refinishing the gym and stage floor at the Sermon Center. Funds have been allocated for the National Frontier Trails Museum to replace HVAC equipment, audio-visual equipment, replacement of failing concrete at the entrance the museum, and new exhibits.
• Independence Power and Light projects include a 69 KV Transmission Line Rebuild project that is the last phase of rebuilding the high voltage power line at substations E through F. Inspections were completed in the summer of 2021 for all wooden transmission poles which
resulted in the need to replace 39 structures over the next three years. The Transmission Pole Replacement Program will begin in fiscal year 2023 and is expected to be completed in 2025.
• The Municipal Services Department includes the annual Pavement Preventative Maintenance and overlay program, 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. And the Noland Road and Lynn Court Intersection Improvements project that will realign the existing offset intersection at Nolan Road and Lynn Court to a standard 4-way, signalized intersection. This will improve traffic flow on Noland Road and traffic from Interstate 70.
• Storm projects include the Leslie to Crane & Herford Phase 1 & 2 project. The project will provide stormwater facilities for the residents of the Crackerneck Creek Watershed to address a history of flooding and erosion.
• Sewer projects include the Piping Rehabilitation project. Evaluations of piping throughout the Rock Creek Treatment Plant showed several pipes nearing their end of life and in need of rehabilitation or replacement. This project includes replacing or repairing internal and external piping at multiple department facilities to prevent structural failure or additional damages to other systems. Also, the Sludge Thickening Process project will replace the dissolved air flotation tanks currently at the end of their life and replace their necessary discharge pumps.
• Water projects include the 420 N. Forest Site and Facilities Improvement project that involves a master plan to develop and implement facility improvements at this location that have not been improved since the 1970’s. The project also includes a plan to add additional fleet servicing facilities and space improvements for personnel and material inventory. The Lime Silo project at the Courtney Bend water treatment plant will provide additional lime slaking equipment to help ensure that the ground water lime softening process is not interrupted.
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 2022-23 out to FY 2027-28, including project name, project type, sponsoring department, and amount and years of expenditures.
City of Independence, Missouri
Capital Improvement Program
2022/2023 thru 2027/2028 Projects by
Department
City of Independence, Missouri Capital Improvement Program
2022/2023 thru 2027/2028
Funding Source Summary
Appendix
Budget Survey Information
Background
The budget survey was released in December 2021 and closed on January 15, 2022. The survey asked citizens to answer 5 questions regarding the budget and received 403 responses by closing.
Summary
Below are each survey question and responses:
Question 1: Please rank this year’s budget priorities from most important to least important.
57.7% Accurately budget for all known costs
20.5%
12.1%
9.7%
Prepare appropriately for future spending based on conservative revenue estimates
Address the adopted strategic priorities outlined in Independence for All and identified as part of this survey
Strategic use of one-time revenues to navigate economic uncertainties
Question 2: Please rank the following areas from most important to you to least important to you
Reduce Crime and Disorder - 59.7%
Enhance Public Health - 13.8%
Stabilize and Revitalize Neighborhoods10.8%
Communicate More Effectively Internally and Externally - 8.5%
Reduce Blight - 7.2%
Question 3: Select three items you believe should receive the most emphasis over the next 24 months
Maintain city streets, bridges, curbs and sidewalks
Create a taskforce to increase services and outreach to homeless
Increase proactive code enforcement and abatements
Increase funding for capital improvement repairs to City historic sites
Question 4: As the city looks toward the future, what is most important to you?
Fund a transit model to support commuter services to employment centers outside of the city
Paying for basic services like code enforcement, park maintenance and street repairs
More investments in Police Services
Looking at alternative service deliver models to improve efficiency of City services
Question 5: What other budget or service priorities do you feel have not been addressed?
City of Independence, Missouri Revised October 2021
Costs to respond to the public health emergency with respect to the COVID-19 negative economic impacts
Reduce Blight in commerial coridors, entryways and neighborhoods
l Illegal dumping mitigation (cameras, LPR)
l
visual appearance of major commercial corridors & historic sites l Highway 24 enhancements (Phase I, II, Fairmount)
l
l
l
The provision of government services to the extent of the reduction in revenue of the entity due to th COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year
Budget Packages
Included in FY 2022-23 Adopted Budget
Any new items or programs that do not fit into a department’s base budget must be requested as a budget packages. Budget package requests are required for any:
• Personnel changes
o Including salary increases (outside of union agreements), conversions and additional FTE
o If requesting new headcount, benefits should be included
• Operating expenditure changes (not personnel) over $5,0000.
• Overtime increases of more than 10% at the department or fund level, against the prior year adopted budget.
$4,757,183 33.00
$4,639,683
Changes from Proposed to Adopted Budget
The following adjustments have been made from the original proposed budget, submitted May 6th , 2022.
Police transfer to General Fund for Salary Increases changed from Misc Revenue in General Fund to negative expense in Police Department 0
Zero dollar net impact, but reduces General Fund Revenues and expenses by $698,474
Total Expenditure Changes - increase in expenditures $246,000
Net total change - increase in revenue $510,000
Long Term Debt Information
Long-Term Obligations and Commitments
Audited amounts as of June 30, 2021
City Debt Obligations
Details of debt found within each Series’ Final Official statement can be located at the City’s Investors’ Relations site:
*Snip of Statement of Net Position on page 22 of the June 30, 2021, Audited Financial Statements in the city’s annual Comprehensive Financial Report (ACFR).
Long-Term Debt – Governmental Activities
June 30, 2021
*Snip of summary of changes in long-term debt of the city in Footnote 7 Long-Term Obligations on page 63 of the June 30, 2021, Audited Financial Statements in the City’s Annual Comprehensive Financial Report (ACFR).
Long-Term Debt – Proprietary
June 30, 2021
*Snip of summary of changes in long-term debt of the city in Footnote 7 Long-Term Obligations on page 64 of the June 30, 2021, Audited Financial Statements in the City’s Annual Comprehensive Financial Report (ACFR).
Summary of Governmental Loans
June 30, 2021
Summary of Tax Increment Financing Fund Debt
June 30, 2021
Summary of MDFB Debt June 30, 2021
Summary of Capital Leases
June 30, 2021
*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 Electric Fund Debt
June 30, 2021
Summary of Water Fund Debt
June 30, 2021
Summary of Sanitary Sewer Fund Debt
June 30, 2021
Summary of Event Center Debt
June 30, 2021
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 of 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, 2021 ACFR.
Budget Procedures and Policies
The fiscal year of the city shall start on July 1st and end on June 30th .
1. Budget Preparation and Submission
a. 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 any 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.
b. City Charter, Section 8.3 Comparison of anticipated revenues and proposed expenditures with prior years.
c. 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.
d. 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.
2. Public Hearing
a. 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 the opportunity to be heard. The Council may continue the hearing at later meetings without further notice.
3. Amendments, Adoption and Appropriations
a. 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 twenty seventh (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.
4. Transfer of Appropriation Balances and Amendments
a. 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 any item 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 for 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 judgement, the amount estimated will be revenue of the fiscal year.
5. Fund Types
a. 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:
i. 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.
ii. 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 the city.
b. 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:
i. Enterprise Funds are sued 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.
c. 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.
6. 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 upon expenditures – decreases in net financial resources. The measurement focus for proprietary funds Is based on 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 related to the actual flow of resources.
As already indicated, the basis of accounting relates to when transactions are recorded, not what is actually 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 longterm 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 are 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.
7. Encumbrances
The city’s policy is to prepare the annual operating budget on a basis which includes encumbrances as the equivalent of expenditures in order to assure effective budgetary control and accountability and to facilitate effective cash planning and control. Encumbrance accounting is where purchase orders, contracts, and other commitments for the expenditures 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 proves at year-end are completed. Encumbrances outstanding at year-end are reported in the Annual Comprehensive Financial Report (ACFR) 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.
8. Difference between Budget Basis and Financial Reporting Basis
The city’s Annual Comprehensive Financial Report (ACFR) reports on the status of the city’s finance 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 ACFR, 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 basis statement.
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 the ACFR.
3. An example of these types of items would be inventory purchases, debt principal payments and capitalized labor and material costs.
Financial Policies
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 of 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 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
a. 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.
b. Compliance with Governmental Standards: Policies and practices in financial reporting shall be consistent with Governmental Accounting Standards Board (GASB) standards.
B. Fund Balances
a. 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 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.
b. 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 expenditures beyond those created by only natural disasters. In such cases, any expenditures 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.
c. 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
a. Evaluation Criteria: The following will be used to evaluate pay-as-you-go versus debt financing in funding capital improvements and equipment:
i. Factors which favor pay-as-you-go financing including 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.
ii. 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.
b. 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.
c. 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.
d. 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.
e. 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.
f. 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.
g. 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 leasepurchase items with a useful life of less than the term of the lease.
h. 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.
i. 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
a. 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.
b. 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, reinvest for the depreciation of assets.
E. Long Range financial Planning
a. 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:
i. Project at least five years into the future;
ii. Consider overall affordability in terms of both capital and operating costs; and
iii. Include a process that allows stakeholder involvement in prioritizing projects and review.
b. 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:
i. An analysis of financial trends;
ii. An assessment of problems or opportunities facing the city;
iii. A five-year forecast of revenues and expenditures;
iv. A review of cash flow requirements and appropriate fund balances to determine whether modifications are appropriate for the Fund Balance Reserve Policy; and
v. Any further analyses as may be appropriate.
F. Monitoring – Accountability – Control
a. 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.
b. Reports: It is the city’s policy to produce monthly reports 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.
c. Spending: No expenditures may be made, or funds encumbered, unless consistent with adopted purchasing policies and expenditure procedures.
d. 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.
e. 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.
f. 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.
g. 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
a. 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.
b. 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.
c. Liquidity: It is the City’s policy that the investment portfolio always remains sufficiently liquid to meet all operating requirements.
d. 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, considering 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
Statement of 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 for illustrative purposes for the current fiscal year]
Calculation and Risk Factors Used
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 shortterm 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, the 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 several options:
• Rate adjustments
• Cost reductions
• Issuance of bonds to fund capital improvement programs rather than the use of “PayGo”
• 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
Statement of 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 like the Great Recession of 2008- 2012. 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 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 shortterm 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, the 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 several 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)
Statement of 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 like the Great Recession of 2008- 2012. 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 shortterm 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, the 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 several 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
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.
Balanced 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, City of Independence Proposed Budget FY 2022-23 Page 227 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 (CIP) – 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.
CID – Community Improvement District.
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.
DNR – Department of Natural Resources.
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 fulltime 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.
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.
GFOA – Government Finance Officers Association.
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.
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.
LAGERS – Local Government Employees Retirement System.
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.
MODOT – Missouri Department of Transportation.
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.
Performance Measures – Process of collecting, analyzing and/or reporting regarding the accomplishments toward a goal by department.
Personnel – Costs associated with providing the staff necessary to provide the desired levels of City of Independence Proposed Budget FY 2022-23. 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.
Proprietary Funds – Accounts for services for which the city charges a fee, internally and externally. There are two types of proprietary funds, enterprise and internal service.
Program Revenue – Revenues generated by a given activity.
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.
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.
Tax Levy – The resultant product when the tax rate per one hundred dollars is multiplied by the tax base.
Taxes – Mandatory charges levied by a governmental unit for the purpose of financing services performed for the common benefit.
Tax Increment Financing Districts (TIF) – A geographical area or district created under Missouri law to encourage development of the area within its boundaries by the reinvestment of half of the incremental tax growth generated by property value increases and new development within the district.
Transfers – Legally authorized financial transaction occurring between a fund receiving revenue to the fund through which the resources are to be expended.
Transportation Development District (TDD) – A geographical area or district created under Missouri law to encourage development of the area within its boundaries by imposing sales tax.
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.
Working 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.
