Proposed Unified Government Budget includes multiple fee increases and cuts.
The 2014 Budget proposed for the Unified Government recommends a path to confront difficult budget challenges next year without raising the property tax rate. The budget proposal deals with sizeable budget shortfalls, while recommending a path to responsibly use increased revenues coming in 2015-2017 from the Hollywood Casino at Kansas Speedway and the retirement of the STAR Bonds issued to build Village West.
"This proposed budget represents a responsible middle path which takes a prudent, responsible and practical approach to dealing with the current financial situation, yet anticipates the benefits of increasing revenues," stated County Administrator Dennis Hays.
The Proposed 2014 Budget requires measures to control costs, but even more severe reductions are being avoided because of the revenues arriving from new development projects. Those revenues are helping offset financial losses caused by a slowly recovering economy and actions by the Kansas Legislature.
Wyandotte County had experienced nearly 20 years of steady growth in assessed valuations. The higher property is valued, the lower the tax rate can be to generate the same revenue. The recession of 2008 blocked that growth in property values. The assessed value of all taxable property in Wyandotte County dropped from an all time high of $1.2-billion in 2008 to $1.09-billion in 2013. This loss of almost $200-million in value reduced property tax collections significantly. Had the recession and repeal of the machinery and equipment tax by the Kansas Legislature not stopped the trend in valuation growth, the Unified Government would have collected an additional $59-million in actual tax revenue between 2008 and 2013.
The Kansas Legislature also stopped the Local Ad Valorem Tax Reduction program which had been in place for decades to reduce property taxes. The cumulative impact of the Kansas Legislature not funding the LAVTR program has cost the Unified Government at least $30-million in revenue.
The Proposed 2014 Budget implements of measures to ensure the budget balances expenses with revenues.
Generally reduces department operating budgets by 5%.
Reduces the budget for capital projects & equipment.
Holds the line on debt funded activity.
Resumes efforts to reduce overall staffing through attrition.
Transfers $3-million from the Water Pollution Control Enterprise Fund to the City General Fund.
The Department of Justice grant will not be accepted if awarded.
The KCK Fire Department Cadet Program is not funded in 2014.
The 2014 Proposed Budget closes the Recycling Center.
Provides funding for 2% pay bonuses for personnel effective July 1, 2014
The Proposed 2014 Budget recommends steps to keep Public Safety the top priority of the Unified Government, while balancing the expenses so other programs, services and needs can still be met. Public Safety consumes 45% of the total Unified Government budget, with costs continuing to rise. Despite the recession, Unified Government spending on the Police, Fire and Sheriff Departments increased $15-million from 2007-2012. During the same period, spending on other Unified Government departments went down $3-million. The results of this investment has produced the best Fire Department and Emergency Medical Service response times in the Kansas City metro and the KCK crime rate is at the lowest point in four decades. The community is paying for more Police Officers, Firefighters and Sheriff's Deputies than it has ever had, yet overtime for Public Safety is running in excess of a million dollars a year. The current level of Public Safety spending makes it difficult to meet other community needs and carry out other Commission goals.
While the Unified Government property tax will not increase under the proposed 2014 Budget, some fees will increase. Trash collection fees will increase $1.50 a month due to increases in the contract with Deffenbaugh Industries. Sanitary sewer fees will increase 5% due to mandates from the Federal government. The Unified Government and Board of Public Utilities were moving to eliminate the Payment-in-lieu-of-taxes (PILOT) fee from monthly utility bills. The Unified Government owned BPU would have instead simply transferred revenue to the general fund. However, the BPU Board is asking the PILOT fee not be eliminated at this time. The 2014 budget recommends the PILOT be set at 11.9% beginning January 1, 2014. This is a 1% increase over the current rate, but still lower than the 12.8% rate set two years ago.
The Proposed 2014 Unified Government Budget recommends total expenditures of $296.8-million for 2014. The City general fund is budgeted at $136.9-million. The County general fund is proposed at $53-million. The proposed budget Holds the Unified Government tax rate at the current level of 81.6 mills
"The Unified Government will begin reaping the full financial benefits of the Village West development in the next few years. In 2015, the Hollywood Casino will be paying an additional 1% of gaming revenues to the Unified Government and the STAR Bonds issued to build the Village West development will be paid off in 2017," states County Administrator Dennis Hays.
The 2014 Proposed Budget recommends a path for determining how those revenues would be used. It is recommended a portion of the new revenues be used for reduction of Unified Government property taxes. Another portion of the new revenues would be earmarked to repay money borrowed from the Environmental Trust Fund, Health Insurance Trust Fund and Water Pollution Control Enterprise Fund. And finally, a share of the new revenues would be used to meet long neglected needs of the Unified Government organization, including employee compensation, repair of facilities and the hiring of needed employees, including; planning, engineering and economic development staff to ensure the Unified Government is able to meet the demands of new growth.
The 2014 Budget Message and the complete 2014 Proposed Budget document and other budget information can be accessed on the Unified Government website at www.wycokck.org.
