Revenue Manual

Transcription

1 Revenue Manual

2 April 18, 2007 HONORABLE MAYOR, CITY COUNCIL AND CITY MANAGER: This document reflects the Revenue Estimate of the City of Independence, historical revenue data, analytical comparisons, and detailed information regarding the City s major revenue sources. A great deal of effort is expended in an attempt to make the revenue estimates as accurate as possible. Various economic indicators are reviewed and evaluated with regard to the impact that they might have on Independence. Those economic indicators include but are not limited to CPI index (measure of inflation), unemployment, inventory levels, and growth in retail sales regionally and nationally. Numerous publications are monitored continuously, looking for indications from analysts as to what is happening and will happen in the economy. In many cases, actual numbers are provided from outside agencies like assessed real property values, grant amounts, rate changes, new major businesses opening, etc. In many other cases estimates are based on criteria that can change dramatically from one year to the next. One example is the natural fluctuations in weather. Fuel costs during the peak heating and cooling seasons have a dramatic impact on utilities serving Independence residents. Also, precipitation may also have a significant impact on revenues of the Water and General Funds. In addition to gathering and analyzing data, actual data for the period up to and including March 2007 are utilized. Also, information received from various department directors, key personnel, and individuals from other organizations that generate or impact City revenues is employed. Where future revenues can be predicted by past history, five years or more of accumulated data are analyzed with regression analysis and other forms of statistical analysis. The above-mentioned methods are combined to arrive at the best estimates possible. This process has proven very effective in recent years with variances from original estimates typically falling in the area of 3%. For example, original budgeted revenue in the General Fund for the fiscal year ended June 30, 2006 was $62,334,843 and actual revenue was $64,197,496, or a 2.99% variance of $1,862,653. In the current fiscal year, original revenue estimates for the General Fund were $66,114,003. Through March, these had been modified by Council action to $66,190,942. Given the current revised estimated revenues of $66,024,198, the projected variance from the amended revenue budget is $166,744 or 0.25%.

3 Considering that estimated revenues are the foundation upon which the operating budget is built, this kind of accuracy is critical to the financial health and proper management of the City. The following summary reflects original and revised estimates of total revenue by fund for fiscal year and projections for fiscal year : Chg. Original Current Inc./(Dcr.) Percent Projected Orig. to Fund Estimate Projection Orig. Est. Change Budget Proj. General Fund $66,194,003 $66,024,198 -$169, % $67,328, % Tourism 998,000 1,079,620 81, % 1,056, % CDBG 776, , , % 774, % HOME 456, , , % 454, % Grants 1,094, , , % 1,047, % Street Sales Tax 6,547,787 6,542,300-5, % 6,623, % Parks Sales Tax 4,680,302 4,865, , % 4,978, % Storm Water Sales Tax 4,467,802 5,103, , % 4,861, % Police Sales Tax 2,245,523 2,281,475 35, % 2,285, % Fire Sales Tax 4,188,802 4,427, , % 4,512, % License Surcharge 1,735,000 1,467, , % 1,161, % Power & Light 109,662, ,056,800-3,605, % 112,090, % Sanitary Sewer 15,550,000 15,385, , % 16,111, % Water 20,195,000 20,325, , % 19,439, % Central Garage 1,819,997 1,822,417 2, % 1,869, % StayWell 12,779,000 12,729,000-50, % 13,368, % Total $253,390,718 $250,581,688 - $2,809, % $257,962, % As indicated above, overall revenues for the City are increasing 1.8%. Utility rate adjustments are responsible for a large portion of this revenue increase. I will be available to discuss any questions you may have regarding this information. James C. Harlow Director of Finance & Administration

4 TABLE OF CONTENTS PAGE I. Introduction 1 II. Fund Revenue Summary 3 III. Revenue Sources 12 GENERAL PROPERTY TAXES ACCOUNT NUMBER Real Estate Taxes - Current and Delinquent Railroad & Other Utilities SALES AND USE TAXES Local Option Sales Tax Cigarette License Tax Transient Guest Tax Local Option Use Tax UTILITY FRANCHISE TAXES Water Utility Franchise Fee Gas Utility Franchise Fee Telephone Utility Franchise Fee Electric Utility Franchise Fee Cablevision Utility Franchise Fee LICENSES AND PERMITS Occupational Licenses Liquor Licenses Exams & Licenses Other Licenses & Permits Building Permits Construction Permits-Public Works Nursing Home Permits Day Care Permits Food Handler's Permits Massage Therapist Applications Other Food Permits Ambulance Permits Plan Review-Health Department i

5 TABLE OF CONTENTS (Cont d.) ACCOUNT NUMBER PAGE NON-BUSINESS LICENSES AND PERMITS Motor Vehicle Licenses INTERGOVERNMENTAL REVENUE FOR FEDERAL SOURCES Community Development Block Grant (CDBG) HOME Grant Emergency Management Assistance Public Health Grant Dial-A-Ride Grant Other Federal Grant Sources STATE SOURCES AND SHARED REVENUES Financial Institution Tax Gasoline Tax Motor Vehicle Fees Motor Vehicle Sales Tax Other State Grant Sources OTHER INTERGOVERNMENTAL REVENUES Jackson County Drug Task Force D.A.R.E. Program Mid-America Regional Council (MARC) Other Misc Grants INTRAGOVERNMENTAL REVENUES Electric Service in Lieu of Taxes Water Service in Lieu of Taxes Sanitary Sewer Service in Lieu of Taxes CHARGES FOR CURRENT SERVICES Planning and Zoning Fees Board of Adjustment Fees Fees for Copies of Official Documents 3304, 3305, 3306, ii

6 TABLE OF CONTENTS (Cont d.) ACCOUNT NUMBER PAGE Computer Service Charge Animal Shelter Charges Identification Tags (Animals) Police Services Reimbursement School Resource Officer Alarm Charges 3318, Recreation Program Fees Park Concessions Pool Fees Recreation Center Fees Recreational Facility Rentals Admissions/National Frontier Trails Center National Frontier Trails Center Gift Shop Admission/Vaile Mansion Cemetery Charges 3341, 3342, Central Garage Charges Sale of Street Signs Special Assessments 3393, Sale of Recycled Material Solid Waste Disposal Fee FINES AND COURT COSTS Fines and Forfeitures Court Costs Court Costs for Police Training Court Costs for Domestic Violence Driving While Intoxicated/Drugs Special Warrant Collections INTEREST 3411, INTERFUND CHARGES FOR SUPPORT SERVICES OTHER REVENUE Sale of Property 3431, Rent Damage Claims Contributions iii

7 TABLE OF CONTENTS (Cont d.) ACCOUNT NUMBER PAGE Cash Over and (Short) Discounts Taken Miscellaneous Non-Operating Revenue CHARGES FOR UTILITY SERVICES Electric Service Charges 4010, 4100, Sewer Service Charges 4010, 4110, Intermunicipal Sewer Agreements 4571, 4572, Water Service Charges 4010, 4100, 4420, iv

8 I. Introduction

9 PURPOSE This Revenue Manual was created to provide information and understanding regarding the sources, authority and amounts of revenue received by the City of Independence. The manual is updated as of the printing date with changes in the laws, rates, and sources pertaining to revenue. CITY REVENUE POLICY Beginning early in each calendar year, City personnel compile the proposed budget based on anticipated service needs, program objectives, and considering estimated revenues. This process attempts to identify expected services, programs, and projected improvements needed by the community and compares these needs with the anticipated available revenue. The revenue component of the proposed budget must include an identification of the various revenue sources to be used in funding municipal services, and the forecast of estimated revenue each source will produce. The changing economic conditions locally and nationally may cause changes in the proposed budget. A continuation of services provided by the municipality will depend on how quickly management recognizes these changes and reacts to them. Therefore, the City s proposed budget is always based on the most current economic information available and an analysis as to how this will impact the City s revenue. CONTENTS Section II contains a comparison of original and revised estimated revenues for the current fiscal year, as well as actual revenue for the four prior years. Section III contains descriptive information of each revenue source. Following is a summary of the information provided in the order it appears on the form: 1

10 Revenue Source: The standard identifying title as it appears in the City s Chart of Accounts. Authorization: A law or an administrative policy which authorizes the City to collect a specific amount of revenue from a specific source. Account and Distribution of Revenue: Monies are designated to the various funds (General, Power & Light, etc.) and the account code designates the revenue account. Description, Rate, Legal Limit: An explanation of why the revenue source exists and what services the City provides in exchange for the receipts. The charges assessed for various services, or the formula used to generate any given revenue are explained, as well as any applicable legal limits. Projection: The method used to estimate revenue. SUMMARY Each new year brings with it the challenge of meeting seemingly limitless needs and expectations for City services with limited resources. As these needs increase, it becomes even more important to estimate revenues with maximum possible accuracy. Finance Department staff have done thorough research, analysis and interviewing to attempt to make the revenue estimates portrayed herein the most accurate possible given the numerous unknown, variable and volatile criteria involved. 2

11 II. Fund Revenue Summary

12 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. General Fund Property Taxes Real Estate 6,037,797 6,398,968 6,501,710 6,844,875 7,003,454 6,940, % -0.9% 7,278, % 3.9% R.R. & Other Utility 45,144 38,401 40,721 29,861 45,000 33, % -25.5% 33, % -25.6% Total Property Taxes 6,082,941 6,437,368 6,542,430 6,874,736 7,048,454 6,974, % -1.0% 7,311, % 3.7% Sales and Use Taxes Local Option Sales Tax 16,525,449 16,450,778 15,916,242 16,534,751 17,157,473 17,015, % -0.8% 17,309, % 0.9% Cigarette Tax 583, , , , , , % -2.9% 590, % -2.0% Local Option Use Tax Total Sales and Use Taxes 17,109,234 17,073,613 16,521,113 17,131,355 17,759,473 17,599, % -0.9% 17,899, % 0.8% Utility Franchise Fees Water 20,201 20,947 22,299 23,022 23,500 21, % -6.5% 22, % -6.4% Gas 3,759,637 4,417,185 4,636,879 4,956,360 5,575,000 4,949, % -11.2% 5,400, % -3.1% Telephone 2,135,909 1,955,009 1,969,693 1,801,648 1,890,000 2,202, % 16.5% 1,820, % -3.7% Electricity 259, , , , , , % -3.1% 310, % Cable Television 543, , , , , , % 2.0% 600, % 1.7% Total Utility Franchise Fees 6,718,262 7,241,437 7,500,356 7,645,602 8,388,500 8,076, % -3.7% 8,152, % -2.8% Payments in Lieu of Taxes Power & Light In Lieu of Taxes 7,368,710 7,651,310 7,628,326 9,637,661 10,384,425 10,084, % -2.9% 10,598, % 2.1% Water Service In Lieu of Taxes 954, ,203 1,395,053 1,610,772 1,751,928 1,692, % -3.4% 1,733, % -1.0% Sanitary Sewer In Lieu of Taxes 1,063,278 1,100,299 1,155,938 1,376,427 1,467,665 1,437, % -2.0% 1,520, % 3.6% Total Pymt. in Lieu of Taxes 9,386,705 9,712,812 10,179,317 12,624,861 13,604,018 13,214, % -2.9% 13,852, % 1.8% Total Taxes 39,297,142 40,465,231 40,743,217 44,276,554 46,800,445 45,865, % -2.0% 47,215, % 0.9% Business Licenses and Permits Occupation Licenses 1,277,813 1,286,374 1,311,031 1,386,842 1,449,000 1,446, % -0.1% 1,482, % 2.3% Liquor Licenses 83,720 79,884 81,096 70,027 89,000 91, % 2.4% 96, % 7.9% Bld. Trades Licenses and Exams 32,540 24, , , , , % 19.4% 104, % 2.0% Fin-Other License/Permits 45,099 44,469 38,190 34,800 44,000 45, % 3.8% 44, % Building Permits, Com.Develop. 992, , ,208 1,347,231 1,309,867 1,329, % 1.5% 1,349, % 3.1% Construction Permits, Pub.Works 542, , , , ,000 1,002, % 33.6% 800, % 6.7% Nursing Home Permits , % -61.3% % Day Care Permits 2,704 9,743 7,734 6,786 6,600 4, % -30.2% 7, % 9.1% Food Handler's Permits 52, , ,151 90, , , % -8.6% 110, % Massage Therapist Appl 1,722 1,812 2,880 2,960 1,500 3, % 101.2% 2, % 34.0% Other Food Permits 89,539 96,768 98, ,345 90,000 84, % -6.1% 87, % -2.5% 3

13 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj Ambulance Permits & Licenses 36,390 34,806 32,088 42,406 40,421 41, % 2.7% 41, % 2.9% Plan Reviews - Health Dept. 8,705 3,020 2,700 1,801 6,000 3, % -46.7% 2, % -55.0% Total Bus. Lic. & Permits 3,165,895 3,393,893 3,326,959 4,076,877 3,999,138 4,274, % 6.9% 4,127, % 3.2% Non-Business Licenses and Permits Motor Vehicle Licenses 433, , , , , , % 1.4% 455, % 1.1% Total Licenses and Permits 3,599,600 3,833,529 3,780,984 4,530,988 4,449,138 4,731, % 6.3% 4,582, % 3.0% Grants- Federal Government Grants Dial-A-Ride 12,353 25,736 38,090 25,393 25,393 18, % -28.7% 25, % Other 38,533 37,172 24, % % Total Federal Grants 12,353 64,270 75,261 49,633 25,393 18, % -25.8% 25, % State Government Grants Financial Institutions Tax 32,412 29,000 37,149 22,181 37,000 34, % -5.5% 35, % -5.4% Gasoline Tax 3,160,336 3,273,214 3,320,835 3,251,035 3,300,293 3,300, % 0.0% 3,350, % 1.5% Motor Vehicle License Fees 559, , , , , , % 19.9% 750, % 14.5% Motor Vehicle Sales Tax 811, , , , , , % 8.0% 841, % 6.3% Total State Grants 4,563,376 4,753,893 4,767,670 4,674,185 4,783,345 4,974, % 4.0% 4,976, % 4.0% Other Sources Jackson County Drug Task Force 509, , , , , , % -22.7% 353, % -15.8% Jackson County Dare Program 333, , , , , , % 332, % -14.4% Mid Am Reg Council 25,000 25,000 24,906 25,000 25,000 24, % -0.3% 25, % Other Misc. Grants 18,656 Total Other Sources 886, , , , , , % -15.6% 710, % -14.7% Total Grants 5,462,198 5,636,171 5,640,786 5,428,400 5,641,221 5,695, % 1.0% 5,712, % 1.3% Charges for Services General Government Planning & Zoning Fees 52,566 46,256 42,821 50,240 45,000 41, % -8.1% 45, % 0.7% Board Of Adjustment Fees 5,950 5,303 5,426 4,552 5,350 4, % -18.0% 4, % -8.4% Sale Of Maps, Books, Plans 12,141 8,354 12,102 7,036 10,000 11, % 19.0% 10, % Sale Of Police Reports 45,565 43,825 46,401 44,475 44,500 39, % -11.0% 44, % Sale Of Fire Reports % -48.0% % -72.0% Computer Service Charges 33,675 34,448 36,470 26,780 30,000 28, % -4.8% 27, % -10.0% 4

14 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. Health Animal Shelter Fees 54,170 60,870 65,917 58,117 62, , % 93.9% 93, % 50.0% Animal Id Tags 1, ,510 4,170 2,000 20, % 946.1% 18, % 800.0% Public Safety Reimb. For Police Services 297,915 67,894 63,126 43,531 55,000 34, % -37.1% 40, % -27.3% School Resource Officers 226, , , , , , % 3.1% 488, % 15.5% Alarm Charges - Police 33,074 46,162 34,675 39,643 35,000 35, % 2.2% 39, % 12.3% Alarm Charges - Fire 5,575 3,500 2,525 8,338 2,025 1, % -33.1% 2, % Recreation Class Fees 36,842 37,709 53,604 55,620 45,000 65, % 46.6% 53, % 18.3% Park Concessions 4,004 5,836 3,436 5,701 9,000 7, % -12.7% 8, % -11.1% Pool Fees Recreation Centers 14,474 17,063 24,635 23,090 22,000 23, % 8.8% 23, % 5.6% Recreation Rentals 60, , , ,975 87, , % 48.6% 97, % 12.2% National Frontier Trails Museum NFTM-Admissions 37,756 49,624 43,268 44,131 55,000 50, % -8.6% 50, % -9.1% NFTM-Gift Shop 34,020 50,483 42,414 34,756 42,000 34, % -16.9% 32, % -23.8% Cemetery Sale Of Cemetery Lots 30,880 21,143 11,850 2,100 9,000 9, % 4.3% 8, % -8.9% Sale Of Monument Bases 10,469 6,613 3,650 5,118 4,000 3, % -15.6% 3, % -22.5% Grave Opening Charges 55,423 44,600 64,195 69,403 50,000 48, % -3.7% 49, % -2.0% Other Charges Sale Of Street Signs 5,449 5,764 2,620 1,714 5,000 1, % -71.4% % -90.0% Special Assessments 198, , , , , , % 79.8% 160, % 33.3% Sale Of Recycled Material 24,920 25,266 31,110 29,983 20,000 22, % 13.9% % % Solid Waste Disp Fees 61,917 74,507 87,093 99,870 75,000 80, % 6.9% 85, % 13.3% Miscellaneous Charges 155, , , , , , % 78.3% 180, % Total Charges for Services 1,499,650 1,343,661 1,464,228 2,056,165 1,516,377 1,788, % 17.9% 1,561, % 3.0% 5

15 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. Fines and Court Costs Fines & Forfeitures 2,972,090 2,775,339 3,063,461 3,490,601 3,435,406 3,454, % 0.5% 3,691, % 7.5% Court Costs 378, , , , , , % -5.4% 462, % 7.5% Police Training 60,094 49,588 53,940 58,184 60,625 56, % -7.1% 65, % 7.5% Domestic Violence 59,539 50,041 52,032 59,237 61,732 57, % -6.9% 66, % 7.5% Dwi/Drug 31,606 34,965 29,558 33,419 35,647 31, % -10.7% 38, % 7.5% Special Warrant Collection Total Fines & Court Costs 3,502,074 3,219,276 3,521,377 4,023,981 4,023,410 4,006, % -0.4% 4,323, % 7.5% Interest Income Interest 28,026 10,732 62, , , , % 59.5% 290, % 93.3% Special Assessments - Interest 9,389 6,028 6,970 7,639 7,000 3, % -49.7% 7, % Interest - Other 75,310 80, ,221 85,581 80,000 76, % -4.6% 80, % Total Interest Income 112,724 97, , , , , % 34.6% 377, % 59.1% Interfund Chgs. For Supp. Serv. 2,704,534 2,767,631 2,700,215 2,949,682 3,016,112 3,070, % 1.8% 3,139, % 4.1% Other Revenue Sale Of Land 1, % Sale Of Fixed Assets 11,109 29,062 56, ,737 35,000 57, % 64.0% 45, % 28.6% Rents 185, , , , , , % -3.8% 156, % -2.5% Damage Claims 76,112 43,490 6,704 15,993 25,000 8, % -67.6% 15, % -40.0% Contributions 170,088 75, ,796 24,391 50, , % 216.9% % % Cash Over/Short 531 1,159 1,119 1, % Discounts Taken % 151.0% % Misc. Non-Operating Revenue 408, , , , , , % -29.7% 200, % -16.7% Total Other Revenue 851, , , , , , % 7.2% 416, % -18.4% Total General Fund Revenues $57,029,846 $58,010,049 $58,805,501 $64,196,357 $66,194,003 $66,024, % -0.3% $67,328, % 1.7% 6

16 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. Power and Light Fund Operating Revenue Electric Service Charges 77,006,684 79,833,388 84,020, ,254, ,144, ,093, % -2.9% 107,327, % 2.1% Other Operating Revenue 796, , ,561 1,024,550 1,431,000 1,380, % -3.6% 1,683, % 17.6% Total Operating Revenue 77,803,372 80,616,932 84,837, ,279, ,575, ,473, % -2.9% 109,010, % 2.3% Interfund Charges 791, , , , , , % -8.2% 880, % -6.0% Interest Income 361, , ,337 1,518,062 2,150,000 1,724, % -19.8% 2,200, % 2.3% Total Revenues $78,956,139 $81,801,118 $86,493,271 $103,584,485 $109,662,000 $106,056, % -3.3% $112,090, % 2.2% Sanitary Sewer Fund Operating Revenue Construction Permits, Pub.Works 40,000 40, Residential 8,144,267 8,570,232 8,834,127 9,196,013 9,456,000 9,589, % 1.4% 9,930, % 5.0% Commercial Base 3,172,998 3,245,404 3,677,292 3,747,937 4,053,000 3,992, % -1.5% 4,163, % 2.7% Commercial Surcharge 768, , , , , , % -15.1% 579, % -11.7% Contract Services 144, , , , , , % -9.7% 187, % Intermunicipal Agreements 398, , , , , , % 441, Other Operating Revenue 102, , , , , , % 4.0% 130, % Change in Unbilled Revenue 24,869 77,594 21,058 29, % Total Operating Revenue 12,755,507 13,322,487 13,978,226 14,366,704 14,938,000 14,936, % 0.0% 15,470, % 3.6% Non-Operating Revenue Interest Income 169, , , , , , % -26.6% 641, % 4.7% Other Revenues, Net 21, ,303-19, , % Total Revenues $12,946,774 $13,549,180 $14,272,437 $14,955,801 $15,550,000 $15,385, % -1.1% $16,111, % 3.6% 7

17 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. Water Fund Operating Revenue Residential Sales 8,046,353 8,141,479 7,789,773 8,488,894 8,600,000 8,900, % 3.5% 9,000, % 4.7% Commercial Sales 2,185,099 2,152,295 2,053,011 2,245,526 2,260,000 2,500, % 10.6% 2,400, % 6.2% Industrial Sales 324, , , , , , % 350, Public Authority Sales 169, , , , , , % -14.9% 235, % Private Fire Protection 46,624 50,609 55,966 93,419 51,000 67, % 31.4% 69, % 35.3% Public Fire Protection 588, , , , , , % 640, % 6.7% Sales for Resale 4,302,002 4,950,287 5,670,010 5,858,904 5,800,000 5,900, % 1.7% 4,700, % -19.0% Other Operating Revenue 221, , , , , , % -5.5% 275, % Total Operating Revenue 15,883,876 16,689,186 16,994,098 18,155,852 18,171,000 18,777, % 3.3% 17,669, % -2.8% Interfund Charges 1,047,996 1,042,937 1,078,554 1,171,505 1,185,000 1,148, % -3.1% 1,332, % 12.4% Interest Income 274, , , , , , % -52.3% 438, % -47.8% Other Revenues, Net 62,209 59, , , % Total Revenues $17,268,867 $17,956,040 $18,872,006 $20,483,999 $20,195,000 $20,325, % 0.6% $19,439, % -3.7% Tourism Fund Transient Guest Tax 680, , ,450 1,000, ,000 1,000, % 3.3% 1,020, % 5.4% Interest and Penalties Federal Grant - Other State Grant - Other 55,741 63,648 97, ,632 30, % % Miscellaneous Charges 1, , % % Interest Income 3,999 4,513 17,692 43,429 24,000 47, % 95.8% 36, % 50.0% Misc. Non-Operating Revenue 2,413 10,470 1,590 5,068 6,000 1, % -80.6% % % Total Revenues $743,821 $938,946 $1,005,106 $1,171,313 $998,000 $1,079, % 8.2% $1,056, % 5.8% Street Improvements Sales Tax Fund Sales Tax 6,145,346 6,022,690 5,633,569 5,869,719 6,147,787 6,375, % 3.7% 6,394, % 4.0% Other Misc. Grants 16, % Miscellaneous Charges 5, % Interest 12,883 19, , , , , % -58.3% 229, % -42.8% Contributions 12, % Total Revenues $6,158,229 $6,041,827 $5,779,565 $6,148,880 $6,547,787 $6,542, % -0.1% $6,623, % 1.2% 8

18 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. Parks Improvements Sales Tax Fund Sales Tax 2,048,448 2,817,653 4,038,148 3,762,542 3,977,802 4,250, % 6.8% 4,262, % 7.2% Atheletic Fees 6,459 6, % 21, % Class Fees 14,000 4, % 9, % -32.1% Park Concessions 2,293 72,804 70,000 46, % -33.8% 50, % -28.6% Pool Fees 299, , , , % -5.9% 573, % -0.3% Recreation Rentals 31,099 7,500 9, % 27.0% 9, % 20.0% Interest 7,603 20, , ,685 36,000 7, % -79.2% 52, % 44.4% Misc. Non-Operating Revenue 4,695 58, , Total Revenues $2,060,746 $2,896,573 $4,612,813 $4,671,878 $4,680,302 $4,865, % 4.0% $4,978, % 6.4% Storm Water Improvements Sales Tax Fund Sales Tax 3,919,445 3,899,705 3,765,605 3,906,389 3,977,802 4,250, % 6.8% 4,262, % 7.2% Other State Grants 231, , % % Interest 64,623 66, , , , , % -14.3% 599, % 22.2% Contributions 3, , % % Total Revenues $3,984,068 $3,966,591 $3,961,192 $4,484,980 $4,467,802 $5,103, % 14.2% $4,861, % 8.8% Police Sales Tax Fund Sales Tax 845,058 2,107,959 2,100,523 2,131, % 1.5% 2,131, % Interest 48, , , , % 3.4% 154, % 6.2% Total Revenues $893,769 $2,244,997 $2,245,523 $2,281, % 1.6% $2,285, % 1.8% Fire Sales Tax Fund Sales Tax 1,604,260 3,976,081 3,977,802 4,250, % 6.8% 4,262, % 7.2% Interest 59, , , , % -16.1% 250, % 18.5% Total Revenues $1,663,262 $4,139,695 $4,188,802 $4,427, % 5.7% $4,512, % 7.7% License Surcharge (Excise Tax) Fund License Tax 716,025 1,118, , ,955 1,600,000 1,297, % -18.9% 980, % -38.8% Interest 8,428 12,655 57, , , , % 25.9% 181, % 34.1% Total Revenues $724,453 $1,130,982 $947,421 $664,902 $1,735,000 $1,467, % -15.4% $1,161, % -33.1% 9

19 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. Community Development Block Grant Fund Federal Grant - CDBG 922, , , , , , % 13.2% 774, % -0.2% Misc. Non-Operating Revenue 3,819 Total Revenues $922,979 $926,578 $784,727 $802,830 $776,034 $878, % 13.2% $774, % -0.2% HOME Program Fund HOME Program Grant 290, , , , , , % 32.0% 454, % -0.4% Interest Income Total Revenues $290,015 $335,113 $364,176 $570,166 $456,644 $602, % 32.0% $454, % -0.4% Grants Fund Emergency Mgmt. Assist. 42,341 40,979 54,033 41,877 43,000 25, % -41.5% 44, % 4.0% Public Health Nursing 186, , , , , , % -40.0% 161, % -27.4% Dial-A-Ride Other Federal Grants 1,654,362 1,789,883 1,968,841 1,758, , , % 2.3% 756, % 8.0% Other State Grants 101, ,769 91, ,488 27, % % Other Misc. Grants 51, ,000 30, % -69.4% 20, % -79.3% Reimb. For Police Services 174, ,328 93,310 28,657 56, % 95.9% 63, % 120.8% School Resource Officers 35, Interest % Contributions 7,712 5,871 20,786 1, % % Total Revenues $1,984,983 $2,321,414 $2,438,096 $2,331,590 $1,094,824 $991, % -9.5% $1,047, % -4.4% Central Garage Fund Central Garage Charges 1,217,722 1,243,639 1,342,911 1,621,051 1,813,297 1,813, % 1,863, % 2.7% Interest Income 2,304 1,284 2,917 5,190 6,700 4, % -35.8% 6, % -4.5% Misc. Non-Operating Revenue 7,216 3,470 3,925 6,071 4, % % Total Revenues $1,227,242 $1,248,393 $1,349,753 $1,632,312 $1,819,997 $1,822, % 0.1% $1,869, % 2.7% 10

20 City of Independence, Missouri Operating Budget Revenue Summary - All Funds For the Fiscal Years through %Chg. %Chg %Chg. %Chg. Acct Original Current Pr. Yr. to Orig. to Projected Curr Est Orig. to No. Description Actual Actual Actual Actual Budget Estimate Curr Est Curr Est Budget to Proj Proj. Staywell Healthcare Fund Premiums 10,192,015 10,938,050 10,847,910 11,610,854 12,711,000 12,581, % -1.0% 13,238, % 4.1% Interest 20,431 10,677 18,578 70,368 68, , % 117.6% 130, % 91.2% Total Revenues $10,212,446 $10,948,727 $10,866,488 $11,681,222 $12,779,000 $12,729, % -0.4% $13,368, % 4.6% Summary: Grand Total Revenues $194,510,609 $202,071,531 $213,109,583 $243,765,407 $253,390,718 $250,581, % -1.1% $257,962, % 1.8% Less: Central Garage Fund -1,227,242-1,248,393-1,349,753-1,632,312-1,819,997-1,822,417-1,869,535 Staywell Health Care Fund -10,212,446-10,948,727-10,866,488-11,681,222-12,779,000-12,729,000-13,368,000 Interfund Charges -4,543,920-4,569,379-4,601,234-4,908,432-5,138,112-5,078,581-5,352,580 Net Total Revenues $178,527,000 $185,305,032 $196,292,108 $225,543,441 $233,653,609 $230,951, % -1.2% $237,372, % 1.6% 11

21 III. Revenue Sources

22 REVENUE SOURCE: Real Estate Tax - ACCOUNT: 3011 Current and Delinquent AUTHORIZATION: Ordinance of 08/21/06 DISTRIBUTION OF REVENUE: General Fund (Taxes levied for public health and recreation purposes are reported within the General Fund) Real Estate Tax is a tax on all real property subject to taxation within the corporate limits of the City of Independence, Missouri. The levies are for general municipal purposes, for the retirement of general obligation bonds, and for the public health and recreation grounds purposes. The following is the assessed valuation of taxable property for Independence as of 1/1/06: Real Property Jackson County $1,046,894,736 Clay County 3,940 Railroad and Utility Property 5,797,270 Total Current Valuation $1,052,695,946 The general formula used to figure real estate tax is as follows: Assessed Valuation divided by 100 multiplied by Tax Levy = Tax Amount Tax rates for general and public health and recreation purposes are limited by Missouri Statutes to $1.00 and $.40 per $100 assessed valuation, respectively. There is no limit on the levy rates for the retirement of general obligation debt. The levy rates established by Ordinance are as follows: General Municipal Purposes Levy $.4507/$100 Assessed Valuation Public Health and Recreation Grounds Levy.2122 General Obligation Debt Levy.0000 $.6629/$100 Assessed Valuation The estimate is calculated by combining preliminary real estate assessed values provided by Jackson and Clay counties with estimates of new construction provided by the Community Development Department. This total is then multiplied by the current levy, the result is reduced by a 1.6% county collection fee and 1.5% allowance for uncollectible taxes. 12

23 REVENUE SOURCE: Real Estate Tax (continued) ACCOUNT: 3011 Current and Delinquent 10.0 Actual Revenues Received Past Ten Years in millions Local Area Property Tax Rates Independence Blue Springs Liberty Lee's Summit Grain Valley 13

24 REVENUE SOURCE: Real Estate Tax (continued) ACCOUNT: 3011 Current and Delinquent Year Round Units Number of 2006 Units Single Detached 35,697 Single Attached 1,767 Double 2,216 3 to 19 Units 6, to 49 units 1, Units 1,529 Mobile Home 1,526 All Other 24 Total Units 50, Estimated Owner Occupied Median Value $99,608 14

25 REVENUE SOURCE: Railroad and Other Utilities ACCOUNT: 3013 AUTHORIZATION: Missouri Statute Chapters 151 and 153 DISTRIBUTION OF REVENUE: General Fund (Taxes levied for public health and recreation purposes are reported within the General Fund.) The assessment by the Missouri State Tax Commission is based on length of railroad track or utility lines as furnished by the companies and all other movable property owned or leased (real and personal property) in the City on January 1 of each year. The City certifies the levy rate to Jackson County. The County remits collected amounts to the City less 1.6% collection fee and ½% for their assessment fund. The aggregate assessed valuation of railroad and utility property as of 1/1/06 was $5,797,270. The City s tax levy is only on the real estate portion of the assessed valuation; personal property is not included. The general formula used to figure the tax is as follows: Assessed Valuation divided by 100 multiplied by Tax Levy = Tax Amount The estimate is based on historical data of both state and locally assessed real estate valuation of railroad track or utility lines in the City and the current rate of the tax levy. Consideration is also given to account for the new construction. Actual Revenues Received Past Ten Years 80,000 60,000 40,000 20,000 60,981 55,405 39,291 38,824 39,169 45,912 45,144 38,401 40,720 29,

26 REVENUE SOURCE: Local Option Sales Tax ACCOUNT: 3041 AUTHORIZATION: Missouri Statute Ordinance of 05/20/02 Ordinance 3398 of 01/21/74 Ordinance of 05/20/02 Ordinance 5777 of 08/20/79 Ordinance of 05/17/04 Ordinance of 05/18/98 Ordinance of 05/17/04 Ordinance of 11/02/98 DISTRIBUTION OF REVENUE: General Fund, Street Improvement Sales Tax Fund, Park Improvement Sales Tax Fund, Storm Water Sales Tax Fund, Fire Protection Sales Tax, Public Safety Sales Tax On October 9, 1973, the citizens approved through an election a 1% City sales tax on the receipts from sales on all tangible personal property or taxable services at retail establishments within the City of Independence, Missouri. This sales tax is collected by the State at the same time they collect the State and County sales tax. The State then distributes the City sales tax monthly after retaining a 1% collection fee. Individual and business personal property taxes were repealed at that time. Merchants and Manufacturer inventory taxes were repealed the following year. The voters approved a Capital Improvement Sales Tax in August 1998 at the rate of ½ of one percent of the receipts from the sale at retail of all tangible personal property or taxable services at retail for a period of five years. The tax expired on December 31, A Storm Water Control Sales Tax was implemented at the rate of ¼ of one percent of the receipts from the sale at retail of all tangible personal property or taxable services at retail for a period of ten years was approved by the voters in the August 8, 2000 election. This tax was implemented January 1, 2001 and ends on December 31, The voters approved a Transportation Improvements Sales Tax in August 2002 at the rate of ⅜ of one percent of the receipts from the sale at retail of all tangible personal property or taxable services at retail for a period of five years. The tax will expire December 31, The voters approved a Parks Sales Tax in August 2002 at the rate of ¼ of one percent of the receipts from the sale at retail of all tangible personal property or taxable services at retail for the period of January 1, December 31, The rate will drop to ⅛ of one percent effective January 1, 2013 and will stay in effect till repealed. The voters approved a Fire Protection Sales Tax in August 2004 at the rate of ¼ of one percent of the receipts from the sale of all tangible personal property or taxable services at retail for the period of January 1, 2005 through December 31, The rate will drop to 1/8 of one percent for the period of January 1, 2009 through December 31,

27 REVENUE SOURCE: Local Option Sales Tax (continued) ACCOUNT: 3041 The voters approved a Public Safety Sales Tax in August 2004 at the rate of 1/8 of one percent of the receipts from the sale at retail of all tangible personal property or taxable services at retail for the period of January 1, 2005 through December 31, Estimates are based upon historical data as well as the economic outlook for the area and the nation. Factors such as inflation, fluctuations in interest rates, and changes in consumer buying power, retail sales trends and unemployment statistics are considered when formulating this projection. Actual Revenues Received Past Ten Years in millions Local Area Sales Tax Rates Blue Springs Grain Valley 2 Independence Liberty Lee's Summit 17

28 REVENUE SOURCE: Local Option Sales Tax (continued) ACCOUNT: 3041 City of Independence, Missouri City Direct Sales Tax Rates (in percent) Calendar Year Direct Sales Tax Rate City of Independence General Fund Street Improvements Park Improvements Storm Water Improvements Police Public Safety Fire Public Safety Direct Sales Tax Rate City of Independence REVENUE SOURCE: Local Option Sales Tax (continued) ACCOUNT: 3041 City of Independence, Missouri Total Sales Tax Rates (in percent) Calendar Year Total Local Option Sales Tax: State of Missouri Mo. State Conservation Mo. State Parks and Soil Jackson County City of Independence Transportation Development District Total

29 REVENUE SOURCE: Local Option Sales Tax (continued) ACCOUNT: 3041 City of Independence, Missouri Total City Taxable Sales by Category (in thousands of dollars) Calendar Year Sales by Retail Category: Apparel stores $ 6,531 6,867 7,895 9,253 General merchandise 4,196 3,796 3,635 3,371 Food stores 150, , , ,242 Eating and drinking establishments 70,881 74,365 77,657 83,386 Home furnishings and appliances 59,892 56,520 49,998 50,102 Building materials and farm tools 8,091 8,084 8,615 7,667 Construction/Remodeling 2,939 3,253 3,265 3,177 Auto dealers and supplies 12,165 12,082 12,081 11,590 Service stations 40,969 41,741 47,314 51,165 Other retail stores 121, ,820 80, ,099 All other outlets 41,197 46,787 37,885 39,487 Total $ 518, , , ,539 *2006 data not currently available. 19

30 REVENUE SOURCE: Cigarette License Tax ACCOUNT: 3042 AUTHORIZATION: Ordinance of 11/18/96 City Code DISTRIBUTION OF REVENUE: General Fund Every retailer is to pay a tax on all cigarettes sold, offered, delivered, or displayed for sale including those offered through the use of vending machines within the City. The cigarette tax rate is $2.50 per thousand for each and all cigarettes sold. Effective January 1, 1997, the City no longer requires the placing of a physical stamp on cigarette packages. A reporting method was developed whereby those selling cigarettes submit a monthly report to the Finance Department accompanied by payment of the respective tax. The 10% discount for stamp handling costs was eliminated at the same time. The estimate is based upon historical data of tax receipts and annual surveys prepared by the Tobacco Institute. Actual Revenues Received Past Ten Years 650, , , , , , , , , , , , , , ,

31 REVENUE SOURCE: Transient Guest Tax ACCOUNT: 3043 AUTHORIZATION: Ordinance 7014 of 05/17/82 City Code Ordinance of 2/19/02 DISTRIBUTION OF REVENUE: Tourism Fund A tax is to be paid on the gross daily rent due from or paid by transient guests of all hotels and motels, bed and breakfast inns and campgrounds. Each operator will, on or before the twentieth day of the month following the close of each month, make a return of taxes collected for transient occupancy. At the time the return is filed, the full amount of the tax collected is to be remitted. Transient guests of all lodging facilities pay a tax rate of 6.5% of the gross daily rent. The tax was increased from 3% to 5% effective August 6, 1979 and from 5% to 6.5% by public vote on February 2, The tax-reporting period changed from quarterly to monthly in September A revision was made to the Code, to allow businesses with an average monthly payment of less than $ to pay on a quarterly basis. Estimates are based upon historical data with consideration given to changes in the number of hotel rooms, the average price per room, and the average vacancy rate for hotels in the area. Information is also obtained from the Tourism Department about any special upcoming community events. Figures shown as percentage of change on a calendar year basis Occupancy Room Demand Room Revenue 21

32 REVENUE SOURCE: Transient Guest Tax (continued) ACCOUNT: 3043 Actual Revenues Received Past Ten Years Transient Guest Tax 1,100,000 1,000, , , , , , , , ,643 1,000, , , , , , , , ,

33 REVENUE SOURCE: Local Option Use Tax ACCOUNT: 3044 AUTHORIZATION: House Bill #25 DISTRIBUTION OF REVENUE: General Fund In 1991, House Bill #25 was passed by the General Assembly which implements a statewide 1.5% local use tax, effective July 1, The law provides for the distribution of the local use tax to cities and counties based on their share of distributions from the local sales tax fund. This account is currently inactive but is included for historical information. 23

34 REVENUE SOURCE: Water Utility Franchise Fee ACCOUNT: 3052 AUTHORIZATION: Ordinance 7019 of 05/17/82 City Code Ordinance 7062 of 09/21/82 City Code Ordinance of 06/21/93 DISTRIBUTION OF REVENUE: General Fund Every person, firm or corporation engaged in supplying public utility services within the City must file a statement showing the gross receipts derived from the operation of such business during that period. The statement and remittance of the Utility Franchise Fee indicated will be paid within 30 days after the close of each monthly period. A 9.08% fee is levied on the gross receipts derived from such business within the City. Delinquent payments will accrue interest at 18% annual percentage rate for each day of delinquency. Raytown Water Company The estimate is based on historical data of tax receipts and projected revenue supplied by the public utility. Consideration is also given to known or possible rate increases since they directly affect this revenue. Actual Revenues Received Past Ten Years 24,000 23,000 22,000 21,000 20,000 19,000 18,000 17,000 16,000 15,000 23,022 22,299 19,291 20,947 19,218 18,722 16,029 18,897 20,201 15,

35 REVENUE SOURCE: Gas Utility Franchise Fee ACCOUNT: 3053 AUTHORIZATION: Ordinance 7019 of 05/17/82 City Code Ordinance 7062 of 06/21/82 City Code Ordinance of 01/07/91 Ordinance of 07/06/93 Ordinance of 10/18/93 DISTRIBUTION OF REVENUE: General Fund Every person, firm or corporation engaged in supplying public utility services (gas) within the City must file a statement showing the gross receipts derived from the operation of such business during that period. Said statement and remittance of the Utility Franchise Fee indicated is to be paid within 30 days after the close of each monthly period. Gas companies will pay the City 9.08% of the gross receipts derived from such business within the City. Delinquent payments will accrue interest at an 18% annual percentage rate for each day of delinquency. Franchise tax payment was changed from quarterly to monthly January As a result of the extremely high cost of natural gas to the supplier, the City authorized MGE to rebate a portion of the franchise fee for residential customers for the months of January, February and March of Due to the projected high cost of natural gas during the winter of 2006, the City increased the contributions to the Community Services League for rate assistance. Due to the unpredictable nature of the weather, the estimate is heavily based upon prior data of tax receipts and the number of heating degree days obtained from the Power and Light Department. Determination is then made as to the correlation between weather and revenues received. Normal conditions are assumed to arrive at the estimate. Other factors such as rate increases and unseasonably cold temperatures are given special consideration. 25

36 REVENUE SOURCE: Gas Utility Franchise Fee (continued) ACCOUNT: 3053 Actual Revenues Received Past Ten Years in millions Local Area Gas Utility Franchise Fees Blue Springs Grain Valley Liberty Lee's Summit Independence 26

37 REVENUE SOURCE: Telephone Utility Franchise Fee ACCOUNT: 3054 AUTHORIZATION: Ordinance 7019 of 05/17/82 Ordinance 7164 of 09/02/82 Ordinance 7062 of 06/21/82 Ordinance 7165 of 09/02/82 DISTRIBUTION OF REVENUE: General Fund Every person, firm or corporation engaged in supplying public utility services (telephone) within the City must file a statement with the Missouri Department of Revenue, showing the gross receipts derived from the operation of such business. Said statement and remittance of the Utility Franchise Fee indicated is to be paid for each quarterly period. The telephone companies are to pay 8.2% of the gross receipts derived from such business within the City. The estimate of this revenue is based on prior year s tax receipts. Actual Revenues Received Past Ten Years in millions