BonnerSprings.com

The Bonner Springs City Council this week made several decisions that will affect the 2013 budget, including how to use its portion of casino revenues.

The council met in a budget retreat Thursday evening and then made some final decisions following its Tuesday regular meeting. They decided to use much of the 2012 casino revenues for smaller capital improvements and no more than half of the casino revenue they are projecting in 2013 to support the city’s daily operations.

John Helin, city manager, reported that casino revenues have continued to decrease. The city will receive about $44,000 for April, after receiving $78,000 for February.

So, the city is budgeting conservatively, estimating $40,000 in revenue each month to total $410,000 this year and $480,000 in 2013. Now, it was up to the council to determine how to use the funds.

The council first approved other 2013 changes: a $6,600 health payment incentive plan, as similar plans have been shown to help reduce insurance costs; a system to increase pay for city employees to bring them in line with average payscales for this area, and re-establishing cost-of-living and merit-based salary increases, both of which would start in July and cost about $13,000 this year and double that in 2013.

City staff first addressed the 2013 budget without using any casino revenues, maintaining current spending levels and tax incomes, reducing city use and sales tax revenues by 3 percent and increasing county use and sales tax revenues by 5 percent. Fine collections also were estimated to be $38,000 lower next year, and the city also took into account increasing health insurance costs and property and liability insurance costs.

All of this added up to a $280,000 shortfall for 2013.

To make that up, the council first decided what it would do with casino revenues. While Helin has long promoted using the unreliable revenue source for capital projects and not for daily operations and maintenance, he said that it would be necessary at least in the near future.

So the council approved his suggested policy of using no more than 50 percent of casino revenues for operations and maintenance, reserving the rest for capital improvement projects.

Approval of that policy meant $240,000 of projected 2013 casino revenues could be used to address the budget shortfall.

The council also discussed the use of this year’s estimated $410,000 in casino revenues. Helin suggested several small capital improvements, but $31,700 would remain. The council voted Tuesday to put those funds toward the 2013 short fall as well.

Other approved uses were:

• Increase contingency funds: $75,000

• Salary adjustments: $13,000

• Replacement truck for public works: $30,000

• City Hall new server: $10,500

• Computer replacements (32): $44,800

• Lions park sidewalk: $5,000

• Additional street improvements: $200,000

Some mill levy increase may still be necessary to cover the $8,300 left in the shortfall as well as a $20,298 shortfall in the library’s operations. City staff estimated property taxes would have to increase by .327 mills to cover the library’s shortfall.

The council will continue its budget discussions in a meeting July 10.

Approval of the merit pay system was contingent upon a demonstration of the software used within the system at a future council workshop. Several council members said they were wary of merit-based pay increases. Watch for more about this item in The Chieftain as the council continues its discussions.

Comments

Clebear 11 months, 3 weeks ago

A discussion of a mill levy increase for the $8,300 shortfall is not sound (even taking into account the projected library shortfall of $20,298). It is true property values have fallen, but it is also true that there are signs of stabilization(a bottom so to speak). Likewise, the new residential construction in Lei Valley alone will more than off set the $8,300 general projected shortfall. Were the new construction permits factored into projected revenues? What about pending permits and forthcoming new apartment complexes construction? These properties will have taxable value come January 1, 2013 and can be estimated based on the permit application. For this reason alone, a mill levy increase is simply not prudent. Likewise, with pending state legislation there is an opportunity of property tax relief funds forthcoming for the re-directed sales tax on alcohol and tobacco to once again fund the fund for property tax relief. This property tax relief funding was suspended by the state in 2002, but based on a 1930's law requires a portions of alcohol and tobacco taxes to be returned to local governments to be used for reducing property tax burdens. Any discussion concerning mill levy's and budget is lacking unless the possibility of mill levy decrease is not seriously considered. Thus far, this publication makes no mention of this real possibility. On another note, how might one go about projecting/estimating $38,000 decrease in fine collection in the face of projected cumulative shortfall of 8,300(general shortfall) and 20,298(library shortfall) totaling $28,598? Where does this $38,000 number come from?

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buddygr 11 months, 3 weeks ago

thanks CLEBEAR. i also agree . i am just glade you were first to reply. But just to let you know no matter what we put up here no one from the city will ever put up an ansewer to anything.
I want to know what happen to the idea that the money from the casino would lower property taxes. Now they say thay need all this to keep taxes down. They want to give raises to city people, and still say they will raise the mill levy. In another part of the paper they want to keep a sales tax in place for street improvements. PEOPLE OF BONNER SPRINGS NOW IS THE TIME TO REPLACE PEOPLE IN CITY HALL ELECTION TIME IS COMING UP. Now is the time to replace some of them. I know i am going to run for city council in my ward, to help try to put a stop to some of this. Hint i here (HARRINGTON) is going to run for mayor. LETS ALL HOPE NOT

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