Highlights of increases in the FY 2024-25 Submitted Budget are included below by Council goal and department. A few major priorities in the Submitted Budget include:
Public Safety
• Invests in wage and benefit increases for first responders
• Creates a hiring and retention incentive program for difficult to recruit KCPD positions
• Dedicates over $7.0 million to the Health Department for violence prevention and intervention solutions to address underlying issues of crime
Housing and Healthy Communities
• Provides $12.5 million for affordable housing initiatives, $2.6 million to Right to Counsel for those facing eviction, and $1.5 million for emergency shelter
• Increases funding in the amount of $8.1 million for a cleaner Kansas City to include: new trash carts citywide, enhanced litter clean up, continuation of the expanded bulky item program and recycling carts
Inclusive Growth and Development
• Continues investment of $500,000 for small business support
• Creates a new restaurant incentive program
Infrastructure and Accessibility
• Provides year 4 of 5 of increased funding for street preservation available through GO Bond authority approved by residents
• Adds $4.0 million for Vision Zero improvements to reduce traffic fatalities and serious injuries
Finance and Governance
• Focuses on an inclusive, diverse community appropriating funds for language accessibility and dedicates $1.0 million in funding for immigration and refugee support services
This budget plans for continued revenue growth, but slower than in recent years. As currently modeled in the Five-Year Planning Model of the General Fund, even with this positive economic outlook, expenditures are outpacing the growth of revenue resulting in a drawdown of fund balance reserves. Thanks to a strong economy and federal support during the pandemic, the City is currently in a strong position with fund balance above the target of 25% as illustrated below. The FY 2024-25 Submitted Budget proposes drawing down $49.9 million of the General Fund reserve. Even with the fund balance drawdown, the City will remain in a position above the fund balance target of 25% for the current fiscal year, absent of any unknown emergency.
Current budgeting practice has a "structural imbalance."
DaveKCMO wrote: ↑Sat Feb 10, 2024 11:01 am
We're drawing down reserves in a strong economy? Huh?
Why is the budget growing soo aggressively? Significantly faster than inflation so it appears to represent an expansion of the city government
The laundry list above highlights lots of spending increases across all departments, so I suspect it's just more spending. You could make the argument that the fund balance is still within the recommended range even with the drawdown and that the investments are "catching up" (wages, resurfacing, affordable housing).
bspecht wrote: ↑Fri Feb 16, 2024 5:38 pm
Downtown Redevelopment District Debt (Power & Light, not including Arena) now up to a $21.5M expense in FY2025, $14.7M from General Fund.
In FY22, the city restructured the downtown development district debt. The $14.7 million is less than the ~$20.0 million that had been planned precovid for 2022 and beyond.
It looks like $15 million is quoted as a pre-covid high for the subsidy. The city punted some payments in 2022 with the restructuring making it artificially low also.
