eNewsletter September 9, 2011

From City Council . . . to the Business Council

Prepared by Rich Groves, Executive Director, North Kansas City Business Council

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Recent topics from City Hall as of September 9, 2011 . . .

This e-Newsletter is a little earlier than the normal every-other-week because of the urgency of the review and expected approval of the 2011-2012 budget for the City of North Kansas City next week.

2011-2012 City of North Kansas City Budget

There will be a public hearing about the 2011-2012 budget this coming Tuesday evening, September 13, at the beginning of a special City Council meeting at 7 p.m. Immediately after that, the City Council will be asked to approve the proposed budget for 2011-2012.

The budget was reviewed by the City Council and other interested attendees (including myself) in a special work session this past Wednesday, September 7. A high level perspective about the budget and the overall financial situation the City faces was eloquently presented by City Administrator Matt Shatto. Department heads of each major department then gave a brief review of the planned budget for their department and the impact that is expected to have.

Complete details of the budget can be found on the City of North Kansas City website in the Document Center, Finance section, 2011-2012 Proposed Budget. Following is the link to that document:

http://www.nkc.org/UltimateEditorInclude/UserFiles/Common/Document/2011- 2012_Proposed_Budget_09-07-2011_041244.pdf

The perspective that Matt Shatto presented can be summarized as follows:

• The budget for 2011-2012 has been constructed using strategic guidelines from the City Council, balanced according to State law and focused on providing efficient and effective services.
• The economy is uncertain and guidance concerning the economy’s future is very limited.
• Revenues have declined in investment income and property and sales taxes the past few years. In
  fact, sales taxes collected in 2010 were less than those collected in 1994.
• Assessed valuations have declined steadily the past 4 years and are projected to be even lower for
  next year.
• The City began cost cutting in 2009. The proposed budget reflects even more cost-cutting.
• An anticipated deficit of $2.9 million has been reduced to $374 thousand through actions
  reflecting City Council policy decisions, the retirement and resignation incentive program, 1
  increases in fees, resumption of collecting general fund personal property taxes and additional
  expense reductions that have affected virtually every department and expense category.
• It is important to understand that revenue going into the Gaming Fund has declined and is
  expected to decline even more resulting in less money to use for City projects and services.
• Future development/re-development is vital for increasing the revenue base for the City.
• We are in a time of transition; the proposed budget provides a framework to restore stability.
• The City and the people it serves will be experiencing a “new normal”

In an overview statement, some of the possible impacts include:

New LiNKCity Director

A new LiNKCity Director has been hired. His name is Brian McDaniel, who most recently has been a telecommunications sales manager with AT&T. He apparently has had extensive experience with the type of product and services offered by liNKCity. He will begin work in North Kansas City on Sep 21.

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What is this?

This is the 10th in a series of e-newsletters that will bring to you, twice a month, any relevant news for the business community from the City Council meetings that I attend each week, as well as other happenings at City Hall.

Why do we do it?

This communication is intended to be an additional Benefit of Membership for members of the North Kansas City Business Council. If you know of other businesses who are NOT members – but who probably would benefit by being a member – please let them know this is one thing they are missing.

If you have good "leads" for prospective new members, please let me know. Call 472-7700 or e-mail richard@nkcbusinesscouncil.com.