Funk's Front Porch

Setting Priorities

"Getting Your Priorities Straight" is a good article in the June issue of PM magazine by ICMA (International City/County Management Association). The article reiterates what the Mayor and the Council have already known: That it's important to set priorities to address government's fiscal problems.

The true crisis governments are facing today is not fiscal, but a lack of focus on priorities and objectives that ensure the success of our communities. The article describes three steps of setting priorities – identifying objectives, defining objectives, and valuing programs according to each program’s influence to the objectives.

The article can be accessed here: http://www.icma.org/pm/9005

-JP

Ten Magazine

Ten is a magazine released quarterly by the Federal Reserve Bank of Kansas City. It offers highly readable reports on the often complicated economic research that goes on at that institution. It's also a must-read of the Policy Analysis team.

We're currently working our way through the winter issue. It contains a very interesting article about forums the Kansas City Fed has held here, at the Kauffman Foundation, about home foreclosure issues.

- ME

Five-Year Financial Forecast

This morning, the Mayor testified before the Finance and Audit Committee in favor of the Three Trails development plan. During his testimony, he talked at length about the city's financial condition. Below is a link to a city-produced PowerPoint document outlining the five-year financial forcast for the city.

Download 200913_five_year_financial_forecast.ppt

Press Release -- Statement from Mayor Mark Funkhouser regarding the Three-Trails Redevelopment TIF application

News from the Mayor's Office
City of Kansas City, Mo.
www.kcmo.org
FOR IMMEDIATE RELEASE: December 5, 2007

Statement from Mayor Mark Funkhouser regarding
the Three-Trails Redevelopment TIF application.

I’m excited about the prospect of rehabilitating the neglected Bannister Mall and surrounding properties. I know there is broad neighborhood and community support to redevelop the area to include a soccer complex, along with retail, office and residential development. I want to see the Three Trails Redevelopment happen. But I don’t intend to support the current plan without more thorough discussion and, at least, the removal of the super TIF requirement, which redirects 100 percent of any new property, sales and earnings taxes back to the project.

The city incentives being requested are enormous - more than $250 million - and they rely on super TIF. The city’s new Economic Development and Incentive Policy allows for super TIF, but I believe it should only be used in the most unusual circumstances. I don’t believe this proposal meets that benchmark. Nor am I convinced that super TIF is required to allow the development to go forward.

The plan also might give the city ownership of a soccer stadium that would require long term expense and attention. The construction of the city-owned Sprint Center required a new tax and a public vote, yet we are considering this plan with neither. I want to be sure we have thought through that decision and its fiscal impact on the city.

For more information contact Kendrick Blackwood in the Mayor’s office, 816-513-3513

- 30 -

Public Input on Budget

Troy Schulte, the city's budget director, will be holding his first public meeting about the budget on Monday, December 10 at the Gregg Klice Community Center, 1600 John "Buck" O'Neill Way (behind the Jazz Museum in the 18th and Vine District). The meeting will beging at 6 pm. Schulte has convened public meetings in the past as part of the annual budget process. But  this time around the Mayor and City Council have passed an ordinance directing the City Manager to utilize the feedback from the public meetings when finalizing the budget.

- JM

Economic Information

The Kansas City Federal Reserve Bank's TEN magazine includes some articles of interest to Kansas City government. Articles examines such issues as:

Why people chose to live where they do;
Economic development efforts that focus on local business;
A report from the recent symposium on housing issues.

Check it out at: http://www.kansascityfed.org/publicat/TEN/Tenmain.htm

Housing Issues

Last week, the Kansas City Federal Reserve Bank hosted a symposium on housing, housing finance and monetary policy. One speaker, Martin Feldstein, talked about three distinct housing-related problems:

Decline in house prices and related decline in homebuilding could lead to a recession.

Subprime mortgage problems have lead to widening credit spreads and freezing of much of the credit market.

Decline in home equity loans and mortgage refinancing could cause greater declines in consumer spending.

You can read Feldstein's summary at:

http://www.kansascityfed.org/publicat/sympos/2007/PDF/2007.09.05.Feldstein.pdf

The web page for the symposium is worth a look for anyone really interested:

http://www.kansascityfed.org/home/subwebnav.cfm?level=3&theID=9954&SubWeb=5

- ME

FInancial Condition Report

The City Manager released a financial condition report on August 22. The report uses an approach from Internation City/County Management Association to help the city council get a good picture of the city's financial condition. In the last few years the city council hasn't had this sort of financial condition analysis, but at the Mayor's urging, the City Manager and staff has produced this report.

Download financial_condition_report.pdf

Economic Development & Incentive Policy Task Force public hearing schedule

For the next six Wednesdays, the Economic Development & Incentive Policy task force will hold public hearings at locations around the City. The Task Force will conduct business between 5 p.m. and 7 p.m. and hold public hearings between 7 p.m. and 8 p.m.

July 25
Baptiste Education Center
5401 E. 103rd St., Room 1

August 1
Bruce R. Watkins Cultural Heritage Center
3700 Blue Parkway

August 8
Guadalupe Center
1015 Avenida Cesar Chavez

August 15
Gem Theater
1601 E. 18th St.

August 22
Doolin Educational Center, boardroom
1900 NE 46th St.

August 29
St. James Lutheran Church
1104 NE Vivion Rd.

Analysis of state and local government fiscal challenges

Date:               

July 19, 2007

To:                   Mark Funkhouser, Mayor

From:               Michael Eglinski, Mayor’s Office

Subject:            Analysis of state and local government fiscal challenges

The GAO just released a study based on their long-term fiscal model of state and local governments. Since city finances are a high priority, I took a look at GAO’s report and summarize the key relevant findings.

Read the entire memo: Download GAO.pdf