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|Zach|
03-05-2008, 11:27 AM
http://www.bizjournals.com/kansascity/stories/2008/03/03/daily27.html

Kansas City's expenditures are increasing faster than its revenue, the general fund balance is "extremely low" and capital maintenance is deferred or underfunded, according to a review by City Auditor Gary White of the submitted budget for fiscal 2009.

City Manager Wayne Cauthen presented the proposed fiscal 2009 budget to Mayor Mark Funkhouser on Jan. 15. The proposed budget for the fiscal year, which runs May 1 to April 30, is slightly more than $1.3 billion, up 6 percent from the adopted budget for the current fiscal year.

On Feb. 26, Cauthen told Funkhouser and the City Council that eliminating Kansas City's projected structural budget imbalance in one fiscal year would require almost $78 million in program cuts to basic city services, including the elimination of about 872 full-time positions.

According to White's review, released Wednesday, revenue in funds supported by the city's general fund is expected to increase 3 percent in fiscal 2009, while expenditures are expected to increase 11 percent. Between fiscal years 2010 and 2013, expected revenue growth is 2 percent a year in these funds, but expected expenditure growth is 4 percent.

The general fund balance in fiscal 2009 is budgeted at 3.3 percent, compared with the city's 8 percent benchmark.

"A low fund balance diminishes the city's ability to respond to unanticipated events," White wrote in the review.

The city's estimates that $80 million is needed for adequate capital maintenance. Proposed funding for capital maintenance is $54 million in fiscal 2009 and is expected to increase to $81 million by fiscal 2012 and then decrease to $56 million after the authority to issue capital infrastructure bonds is exhausted, according to the review.

Other highlights of the review include:

* Tax increment financing and Super TIF reimbursements increased almost 120 percent, six times the increase in revenue supporting the reimbursements. Between fiscal 2005 and 2009, funds redirected or budgeted to be redirected to TIF and Super TIF projects were about $137 million combined, while revenue growth in the funds was $119 million.
* Debt service as a percentage of general municipal revenue is expected to increase to 11.3 percent in fiscal 2009, the highest level in the past 12 years. Debt service payments in fiscal 2009 will be about $120 million on $2.6 billion in outstanding debt.

"City-backed debt for a number of economic development projects will obligate additional city funds if revenues from those projects do not cover the debt service," according to the review.

Among White's recommendations in the review:

* The city manager should submit a draft policy on the appropriate level of general fund balance and a strategy to increase the fund balance to the City Council's required amount.
* The city manager should evaluate the feasibility of changing the city's pension systems to a defined-contribution system, and consider consolidating the four pension systems.
* The city manager should analyze and project future effects of TIF and Super TIF reimbursements on city revenue.

The entire budget review is available on the city's Web site.

pikesome
03-05-2008, 11:40 AM
City Manager Wayne Cauthen presented the proposed fiscal 2009 budget to Mayor Mark Funkhouser on Jan. 15. The proposed budget for the fiscal year, which runs May 1 to April 30, is slightly more than $1.3 billion, up 6 percent from the adopted budget for the current fiscal year.

On Feb. 26, Cauthen told Funkhouser and the City Council that eliminating Kansas City's projected structural budget imbalance in one fiscal year would require almost $78 million in program cuts to basic city services, including the elimination of about 872 full-time positions.

Maybe I'm misunderstanding but $78m is 6% of $1.3b. There's no way to scrape 6% out of the budget without firing 872 people and cutting services?

The median household income in the US is about $48k, cutting 6% is saving $240 dollars a month, not easy but doable if needed.

Cochise
03-05-2008, 11:41 AM
Maybe I'm misunderstanding but $78m is 6% of $1.3b. There's no way to scrape 6% out of the budget without firing 872 people and cutting services?


No kidding... that sent the BS flag up for me too.

I also am always ready to question what city bureaucrats deem "essential services"

pikesome
03-05-2008, 11:43 AM
No kidding... that sent the BS flag up for me too.

I also am always ready to question what city bureaucrats deem "essential services"

Whores and booze?

Cochise
03-05-2008, 11:48 AM
Whores and booze?

Emmanuel Cleaver's trips to Disneyland?

pikesome
03-05-2008, 11:52 AM
Could be Funkenhoser's secret addiction:

Link to the Ebay auction (http://cgi.ebay.com/1964-ADDAMS-FAMILY-REMCO-LURCH-DOLL-MINT-IN-BOX-!!NR_W0QQitemZ290211263909QQcmdZViewItem?IMSfp=TL0803030831a35994)
http://imagehost.vendio.com/bin/imageserver.x/00000000/quigleymarketing/lurch.jpg

Bowser
03-05-2008, 12:33 PM
LMAO

Baconeater
03-05-2008, 12:36 PM
If I was Mayor I'd just set the city on fire.

Bowser
03-05-2008, 12:45 PM
If I was Mayor I'd just set the city on fire.

You know it's gotten bad in your city when Council Bluffs, Jr. is talking smack.