HomeMy WebLinkAbout2014-05 2014 - 2015 Preliminary Budget
---------- Forwarded message ----------
From: McGinness & Shaw <office@mcginness-shaw.com>
Date: Mon, May 12, 2014 at 3:29 PM
Subject: 2014 - 2015 Preliminary Budget
To: Don Coleman <colemanheavyconst@yahoo.com>, donpcoleman@yahoo.com,
Jeff Goodwin <jeffg@completehomeconcepts.com>, Richie Benninghoven
<rcb@usckc.com>, rsuper@kc.rr.com, brent@northpointkc.com
Cc: ben.rqbld@gmail.com, streetkevin@att.net
Board Members,
Ben, Kevin and I have been meeting and working on the
preliminary budget for the period of July 1, 2014 – June 30, 2015. Each
of us has contributed to the preparation of the overall budget. Ben and
Kevin have worked primarily on the O & M portion of the budget and I
have been working with UMB and the City on the other parts of the
budget.
The preliminary budget will be presented at the May 21st
Board meeting for review and discussion. As you go through the overall
budget, you will see that we are projecting the installment taxes to be
$486,540.00 in 2014 compared to $447,320.00 in 2013. The primary reason
for the increase is based on the Board's decision last year to use all
of the excess funds in the debt service account which reduced the amount
of TIF revenues available to make Levee District bond payments. As a
result, the installment tax figure has gone up by approximately
$40,000.00 this year.
The full amount of TIF revenues which can be applied to
Levee District bond payments will be available this year. You will see
that amount is $951,000.00. Please keep in mind that the projected TIF
revenues are based on funds which have already been paid to UMB and on
additional TIF funds which the City says will be received in June or
July this year.
As noted above, one major difference in the budget compared
to last year is the much smaller amount of excess debt services funds.
This year, there will be about $20,000.00 which can be used to pay next
year's debt service payments. Last year there was about $185,000.00
which was used to pay this year's bond payments. The maintenance tax
and interest figures are close to what they were last year. In 2013,
maintenance tax was $753,875.00. This year it is projected to be
$760,015.00.
The O & M portion of the budget is reflected on the
spreadsheet which Ben prepared and is attached to this email. As you go
through the line items, you will see the changes for each item. Most of
the items remain the same. There are increases in some items and
decreases in others. The Reserve Accounts section of the preliminary
budget was not changed. However, you will see a new item under Cost
Code #6000.2 which is "Vehicle/Equipment Replacement". In our budget
meetings, Ben, Kevin and I discussed the age and condition of the Levee
District's vehicles and major equipment items. Some of the items were
purchased used and are still functional, but will undoubtedly need to be
replaced at some point in the future. Other items, such as the S-10
pickup, may need to be replaced in the near future. We decided to put
this in the budget as a new Reserve Account line item so that the Board
could give some thought to it and discuss whether or not to put some
money in the budget for this type of use.
In thinking about creating a Vehicle/Equipment Replacement
reserve account, I approached the bank about releasing some of the funds
currently held in the reserve account to secure payment of the
office/maintenance facility loan. We are currently reserving
$100,000.00 for the loan. The bank has agreed to reduce the amount
required to be held in reserve to $60,000.00. The Board may want to
consider allocating the $40,000.00 to one or more of the other reserve
accounts, especially the new Vehicle/Equipment Replacement reserve
account. This would help to begin funding the new reserve account and
would not result in any increase in maintenance taxes.
Please review the budget information. You may want to
contact Ben if you have any questions about the O & M portion of the
budget. You are welcome to contact me if you have any questions about
any of the items shown in the preliminary budget. Thank you.
Michael McGinness
McGinness & Shaw, LLC
303 Marshall Road, Suite 1
P.O. Box 168
Platte City, MO 64079
Tel.: 816-858-2630
Fax: 816-431-5086
www.mcginness-shaw.com <http://www.mcginness-shaw.com/>