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[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 220937
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Sponsor: Director of Finance Department
Adopting the 2024-2028 Citywide Business Plan including City Goals, the Financial Strategic Plan, and the Balanced Scenario of the Five-Year Planning Model; and directing the City Manager to align departmental strategic plans and business plans to the Citywide Business Plan.
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WHEREAS, the City Council adopted Resolution No. 120879 on October 11, 2012, stating the Council's intent to adopt a long-term financial plan and to review and update it on an annual basis; and
WHEREAS, the City Council adopted Resolution No. 130025 adopting the City's strategic plan of priorities and performance indicators; and
WHEREAS, the residents of Kansas City at the April 8, 2014, Special Election amended the City Charter in Section 804 to mandate the adoption of a Five-year Financial Plan by November 1 of each year; and
WHEREAS, since enactment of this Charter provision, the City Council has annually adopted a resolution approving a Citywide Business Plan including Council Goals, the Financial Strategic Plan, and the Balanced Scenario of the Five-year Planning Model; and
WHEREAS, the Mayor and City Council provided priorities to shape Goals and Objectives on July 10, 2020; and
WHEREAS, City staff specified Objectives and Strategies within City Goals on July 31, 2020; and
WHEREAS, City staff developed 87 strategies which will serve as action plans designed to facilitate completion of objectives within the timeframe of the Citywide Business Plan; and
WHEREAS, the Submitted Citywide Business Plan contains the City Goals, the Financial Strategic Plan, and the proposed Five-year Planning model; and
WHEREAS, the City Goals include Finance and Governance, Housing and Healthy Communities, Public Safety, and Infrastructure and Accessibility, with 18 total Objectives and 86 Strategies; and
WHEREAS, the Financial Strategic Plan proposes 13 financial objectives; and
WHEREAS, the Submitted Citywide Business Plan proposes a Five-Year Planning Model that addresses several objectives in the Financial Strategic Plan; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:
Section l. That the City Council hereby adopts the following City Goals with the following Objectives and Strategies:
Finance and Governance
1. Reform the City's economic incentives to meet the policy objectives of the City Council
a. Develop a method to consistently report the financial impact of economic development incentives on taxing jurisdictions, including the City
b. Assess the need for an inter-departmental team to review new economic development incentive requests
c. Review citywide economic development policies and recommend areas for reform to support equitable and accessible development in all areas of Kansas City
d. Assess the organizational alignment of external organizations, statutory agencies and City departments as it relates to economic development.
2. Ensure the resiliency of City government
a. Develop an organizational standard of core competencies in law, human resources, and finance
b. Implement the PeopleSoft Strategic Plan for human resources and finance
c. Develop a strategy for upcoming tax renewals: Earnings Tax (2021), Temporary Health Levy (2023), KC Area Transportation Authority Sales Tax (2024), and Public Safety Sales Tax (2026)
d. Update financial policies to identify required actions in response to severe recession, natural disaster, or other financial shock
e. Identify solutions to structurally balance special revenue funds traditionally supported by the General Fund
Implement a priority-based budgeting system
g. Identify and develop adequate diversified funding mechanisms to increase access to affordable housing
h. Develop an Information Technology Governance Framework to manage IT efforts, cost and risk, and deliver a unified IT service model across the City
i. Develop and implement a comprehensive risk management program
3. Engage in workforce planning including employee recruitment, development, retention, and engagement
a. Develop a plan to ensure internal candidates are given adequate consideration for promotional opportunities
b. Create a plan to adjust pay scales so that they are within the market range using results of the Market Pay Study and its gender equity analysis component
c. Develop sustainable strategies to continuously engage all employees and implement recommendations made by the Employee Engagement and Empowerment committees
d. Develop partnerships with local educational institutions to effectively recruit the City's entry-level workforce
4. Ensure a responsive, representative, engaged, and transparent City government
a. Review the City Charter to identify the need for revisions
b. Conduct a comprehensive, departmental initiated review of the Code of Ordinances to foster periodic updates
c. Commission a tax burden study
d. Improve communication between staff and customers by using plain language
e. Develop and implement a reporting system to measurably evaluate service request performance and progress in achieving customer service goals
Housing and Healthy Communities
1. Maintain and increase affordable housing supply to meet the demands of a diverse population
a. Preserve existing affordable rental and owner-occupied housing units citywide
b. Expand the use of Low-Income Housing Tax Credits for the preservation and construction of new affordable housing units
c. Work in a renewed partnership with the Housing Authority of Kansas City and other stakeholders to actively create affordable housing in all areas of the City
d. Create a range of homeownership assistance programs to remove barriers and encourage residents in all income groups to be homeowners
2. Broaden the capacity and innovative use of funding sources for affordable housing
a. Capitalize and maintain the Housing Trust Fund
b. Align developer incentives with affordable housing production and commitment
c. Utilize Brownfield assistance programs to facilitate and support development of new infill affordable housing in established neighborhoods or on repurposed property
3. Invest in neighborhood stabilization and revitalization to reduce blight, ensure sustainable housing, and improve the wellbeing of residents while sustaining their diverse cultures
a. Focus partnerships with neighborhoods, community groups, and agencies to support existing programs, events and initiatives for resident engagement and social equity
b. Provide well-cared-for green space for recreation, public events, and public enjoyment
c. Establish baseline criteria for the development of Health Prosperity Zones
d. Establish an interdepartmental work group that identifies the underlying causes of the City's racial divide and develop recommendations on how to address this problem
e. Integrate human and social benefits of housing policy with natural resource conservation and restoration
Propose and support Legislation to address environmental health hazards, including air and noise pollution
Update Food Code to ensure safety of food establishments
h. Propose and support legislation and other initiatives to provide the City and local neighborhoods better control over the future of vacant properties
i. Develop an anti-illegal dumping campaign tied to health and environmental impact
4. Ensure all occupants of residences have quality, efficient, and healthy housing with minimal economic or regulatory barriers
a. Develop and support actions to eliminate lead paint hazards
b. Promote expansion of energy efficient measures as part of housing preservation and new developments
c. Develop communication and other strategies to increase compliance with solid waste ordinances, with particular attention to enforcement
d. Promote housing mobility and assist residents with access to enhanced services and housing choices
e. Advocate for nondiscriminatory, Fair Housing at the state and national level
5. Address the various needs of the City's most vulnerable population
a. Coordinate with external partners to address people experiencing homelessness and other vulnerable populations
b. Increase the level of supportive housing and treatment services to high risk populations to help them secure permanent housing
c. Create an interdepartmental work group to assess work being done related to homelessness and implement priorities and strategies outlined in the Zero KC plan for ending homelessness
d. Reduce Sexually Transmitted Infections (STIs) and HIV/AIDS, particularly among adolescents
6. Utilize planning approaches to improve the City's neighborhoods
a. Update the City's comprehensive plan
b. Establish standardized guidelines for area implementation committees based on best practices
c. Develop and implement a plan to foster entrepreneurship, small business growth, and development
d. Implement the digital equity strategic plan for all residents to have access to the same information technology resources
Public Safety
1. Reduce violent crime among all age groups, placing an emphasis on young offenders
a. Set aside annual funding to partner with local schools and provide year-round internship opportunities for students, as is feasible
b. Empower all patrolling/enforcement City staff to report dumping and other property violations
c. Collaborate across departments to implement a messaging campaign supporting positive social norms and behaviors across all age groups, with an emphasis on youth and young adults
d. Provide educational training through Kansas City Public Schools to youth and young adults inside and outside the classroom which affords them with the information necessary to make positive decisions and avoid negative influences
2. Evaluate and identify areas of opportunity in the emergency response delivery system to ensure the best possible patient outcome
a. Ensure
b. Improve the that staff are trained in trauma-informed care approaches to client service
c. Develop programs to handle mental health crises using neighborhood leaders to identify and administer Mental Health First Aid (especially to young adults)
d. Expand the City's surge capacity for major outbreaks of disease
e. Develop programs and messaging around life safety and injury prevention for the community focusing on vulnerable populations
f. Promote expanded automatic aid agreements with neighboring communities to enhance coverage and increase efficiency
g. Restore International Academies of Emergency Dispatch accreditation to KCFD Communications Center
h. Improve the cardiac survival rate through internal and external training in CPR and other life-saving techniques
i. Develop initiatives to reduce the number of high utilizers of emergency response services and non-emergent calls
j. Ensure interoperability of Police communications are established immediately for mass causality scenes
3. diversity of employee recruitment, succession planning, and retention in the Police and Fire Departments
a. Develop programs with other fire service and EMS agencies to leverage the regional pool of applicants to increase diversity and reduce competition
b. Recruit a diverse group of teens and adults into careers in Police and Fire service
4. Increase effectiveness and efficiencies of operations at Municipal Court and work to achieve the best possible outcomes for those served
a. Encourage the maintenance of positive relationships between minors and their incarcerated parents
b. Implement a brief Adverse Childhood Experiences (ACEs) survey for households served by the department and refer client families to the Health Department for further support
c. Improve access to justice by expanding online partial payments and virtual court dockets
d. Develop opportunities to expand education about the municipal judicial system to help build trust between the Court and the Community
Infrastructure and Accessibility
1. Enhance the City's resiliency and equity through a safe, efficient, convenient, inclusive, accessible, sustainable, and better connected multi-modal transportation system
a. Optimize the City's transit investment to enhance mobility and meet community needs
b. Continue to implement complete streets and Vision Zero plans to enhance pedestrian connectivity
c. Implement transportation solutions that provide inclusive and equitable access and connect places
d. Utilize the City's Transit Oriented Development Policy to encourage higher density for new housing developments within close proximity of frequent public transit service
2. Develop environmentally sound and sustainable infrastructure strategies that improve quality of life and foster economic growth
a. Update the City's Climate Protection Plan with new goals for greenhouse gas emission reduction, incorporating new strategies for climate adaptation, mitigation, resilience, and the long-term removal of carbon dioxide from the atmosphere
b. Reduce financial impacts of the City's Smart Sewer Program by proactively working with the EPA to adjust the timeline for project completion
c. Implement the City's Smart Sewer Program by practicing adaptive management approaches and integrating green infrastructure
d. Collaborate with Evergy to support implementation of the Renewables (non-carbon-based power) Direct Program
3. Increase and support local workforce development and minority, women, and locally-owned businesses
a. Adopt Workforce Disparity Study and begin implementation of broader workforce development programs across City and statutory agencies
b. Develop a plan to prioritize the hiring of local companies by the City and statutory agencies
4. Engage in efforts to strategically invest in the City's infrastructure and explore emerging technologies
a. Implement improvements at the City's convention and entertainment venues to successfully host conventions, tradeshows and meetings, while maximizing economic impact for the City
b. Develop a plan to track and preserve investment in City-owned historic and cultural assets
c. Monitor the finance, design, and construction of the Airport's Terminal Modernization Program to bring it in on time and on budget
d. Develop and update sustainable infrastructure plans that include a comprehensive asset management plan for critical assets that include the goal of keeping infrastructure assets at good or better condition
Section 2. That the City Council hereby adopts the Financial Strategic Plan including the following priorities:
1. Revise the Fund Balance and Reserve Policy to account for amounts above the General Fund Unreserved Fund Balance goal of at least two months operating expenditures
2. Update financial policies to identify required actions in response to severe recession, natural disaster, or other financial shock
3. Identify solutions to structurally balance special revenue funds traditionally supported by the General Fund
4. Adopt a model portfolio of services and adjust the City's expenditure ratios as needed to maintain portfolio balance
5. Seek legislative relief with regard to the five-year renewal of the earnings tax
6. Ensure that fee-supported services are self-supporting to the extent practicable
7. Commission a tax burden study
8. Develop a comprehensive debt portfolio report to demonstrate compliance with the codified debt policy objectives
9. Attain a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and liquidity needs
10. Develop and implement a comprehensive risk management program
11. Implement a priority-based budgeting system
12. Develop a long-range funding plan for pension, healthcare, and other post-employment benefits
13. Create a comprehensive financial recovery plan to mitigate the impact of the recession caused by the COVID-19 pandemic
Section 3. That the City Council hereby adopts the Balanced Scenario in the Five-Year Planning Model that addresses objectives identified in this resolution and that includes the following assumptions:
Assume FY 2022-23 Adopted Budget plus the following conditions:
• Assumes annual wage increases in each year of the five-year financial plan at 3.0% (3.5% for Fire unions) for FY 2024, 3.5% for FY 2025 and 4.0% beyond. Collective bargaining agreement terms are included
• Assumes pension increases of 3.0% in FY 2024 and 4.0% beyond to account for increased costs due to compensation plan increases
• Assumes mandates in the General Fund required by Resolution or Ordinance:
▪ Increase in service levels for recycling carts pursuant to Ordinance No. 220383
▪ Increase in service levels for bulky item pick up pursuant to Ordinance No. 210959
▪ Increase of $110,000 in funding for the American Jazz Museum in the FY 2024 Submitted Budget pursuant to Ordinance No. 220903
▪ Increase of $500,000 in funding for Youth Employment in the FY 2024 Submitted Budget pursuant to Resolution No. 220976
• Assumes debt at same level in the General Fund in future years for upcoming fleet replacement needs
• Assumes a vacancy factor of 5% to account for normal attrition
• Assumes a modest economic downturn starting recovery in FY 2025
• Assumes an increase in operating expenditures in FY 2024 to account for ongoing inflation
• The General Fund subsidizes the anticipated shortfall in all other governmental activities funds (Special Revenue, Debt, Capital)
Section 4. That the City Council directs the City Manager to include the assumptions of the Financial Strategic Plan, the Five-Year Planning Model, and year one of the GOKC Bond Plan in the Submitted FY 2023-24 Budget. The GOKC Bond Plan in the Submitted FY 2023-24 Budget will include funding for Marlborough Community Improvements and Wornall Road - Gregory to 75th projects offset by reducing the allocation to Street Preservation to keep the total GO bond issuance for FY2023-24 under $40 million.
Section 5. That the City Council directs the City Manager to direct the strategic and business planning of City departments and to align departmental strategic plans and business plans to the Citywide Business Plan.
Section 6. That the City Council may update and enhance the Citywide Business Plan and the Council's adopted priorities through the Council committee process.
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Approved as to form and legality:
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Alan Holtkamp
Senior Associate City Attorney