Since March 2009, the City Council and staff have conducted seven work sessions to review and establish an operating budget that focuses on delivering quality City services and programs according to the priorities outlined by Council. The Council held a strategic goal setting work session in April 2009 and established the following priorities:

1. Citizen Advocacy
1. Conduct more business online
2. Consider user fees for some city servicescomplete redraft and practice our emergency operations plan
3. Expanded or different hours at Visitors Bureau
4. Provide an out-door pet play space
5. Imprive timeliness of Merriam Highlights and City Calendar
6. Consider ward wide informational gatherings for neighborhood issues
7. Citizens satisfaction survey
8. Improve website content and access
2. Sustainability
   1. Pursue “take charge challenge” efforts; weatherization, optimizer thermostats, shade trees, etc.
   2. Pursue environmentally friendly (Green) products and programs
   3. Train citizens and employees about the value of resource management
3. Improve Planning Process
   1. Create a five year plan
   2. Update comprehensive plan
4. Code Enforcement
   1. Intensify enforcement on all code violations (including housing)
   2. Redraft animal ownership ordinance
   3. Monitor foreclosures and prepare for code violations
   4. Assist landlords with vacancies
   5. Consider new sign committee/ordinance
5. Community Development
   1. Continue 1/4 cent sales tax for residential group streets and drainage
   2. Sustain CIP efforts
   3. Sustain street lighting program
   4. "Neighbor helping neighbor" program
6. Economic Development
   1. Re-think development agreements (Village & Pointe)
   2. Continue to redevelop Downtown Merriam
   3. Work with small business owners
7. Administrative Focus
   
   1. Continue to improve working relations between council and staff
   2. Work with DOC to complete census and consider redistricting
   3. Research ordinances for conflicts
   4. Justify all expenses for conservative budgeting
   5. Assign personnel in each department as grant czar
8. Maintain Core Services
   1. police
   2. fire
   3. public works - maintain excisting infrastructure
   4. parks and recreation

The proposed budget documents were presented in a public hearing on July 27th and City Council voted to approve the budget at the meeting which followed. The approved budget was submitted to the County Clerk by August 25th.

The most significant factors affecting the City's financial outlook include:

• Lack of growth in overall sales tax revenues from existing sources.
• Projected decline in property valuations.
• Legislative actions at the state level that erode the City's property and sales tax base, including:
  • (HB2619) Eventual elimination of property taxes on commercial machinery and equipment

No increase in the City of merriam property tax mill is planned for 2010. The average value for a home in Merriam is $150,000.

Property Tax Calculation Example:
Average Value of Merriam Home: $150,000
Annual Tax Liability for City Services: $471.96 ($39.33 per month)
Current (2008) Mill Rate: 27.186

Assessed Valuation: 11.5%
150,000 X 11.5% = $17,250

$17,250 X 27.186 = $471,960
$468,958.50÷ 1,000 = $471.96

Final mill levies for 2009 (funding 2010 budgets) will not be set until October, 2009. Below you will find Johnson County 2008 mill levies funding for 2009 budgets. The median city mill levy among Johnson County cities is 26.003 mills.  Merriam’s mill levy is 1.357 mills over the median, at 27.360.  Ten of the 19 Johnson County cities have mill levies that range within + 2 mills of the 26.003 median.  Fourteen cities have mills less than Merriam; 5 cities have mills greater than Merriam.

Merriam ranks #10 out of 19 for total tax burden among Johnson County cities.  This places Merriam at the exact center of the list, with 9 cities having higher tax burdens and 9 cities having lower tax burdens. Mill levies for 2009 (funding 2010 budgets) will not be available until October, 2009.

The following is an overview of general fund revenue sources, followed by a detailed projection for the City's 2010 budget:

• City Sales tax is estimated at 85% of the actual 2008 collections.

The greatest ongoing budget challenge is lack of overall growth in sales tax revenue from existing sources (auto dealers, Merriam Town Center, and other established businesses).
There are two significant redevelopment projects currently underway in Merriam; Merriam Village (east of I-35 and south of Johnson Drive) and Merriam Pointe (west of I-35 and south of 67th Street).  While both projects are currently stalled due to challenging economic conditions, the City has completed improvements to public infrastructure and continues to work with the developers.  No revenue from new sales taxes related to these developments has been included in 2010 projections.

• Merriam Village:
• Approximately 53,000 square feet of retail space has been completed though no permanent tenants have been announced.
• The developer, Developer’s Diversified Realty, is marketing the site and seeking leases.
• Timing of future construction on the site is not known.
• Merriam Pointe:
• Shawnee Mission Hyundai opened in fall 2007.
• The developer, Merriam Pointe, LLC, is marketing the site and seeking leases.
• The City recently agreed to allow additional time for completion of the development if certain conditions are met by the developer.

The following is an overview of general fund expenditures for the City's 2010 budget:

*Note: by law, the City's projected expenditures must balance against projected revenue.

Residents can expect the same high level of service that they have come to expect from the City of Merriam. The City's 2010 operating budget was established with a focus on delivering quality City services and programs according to the priorities outlined by council.
Major Equipment Purchases: The 2010 Equipment Reserve Fund budget includes the replacement of two police patrol vehicles for a total of $44,000. If needed, replacements are budgeted for HVAC systems at City Hall, Police Department and Community Center up to $132,500.  The Fire Department will replace the outdoor warning system for $20,000, if needed.  Public Works will replace one skid loader for $49,000.    Also included are funds to upgrade and replace computer equipment and software, as scheduled.

Funding for several staff positions has been suspended for 2010.  Assistant City Administrator, Fire Marshal, Neighborhood Services Manager and Management Intern positions will remain vacant for 2010.  Responsibilities of each position will be shared by other staff members in the appropriate departments.

Transfers to the Capital Improvement Fund are reduced by $21,825 from the level set by policy. Currently no funding is provided for the Merriam Enhancement Program, Sidewalk Program or South Park Square.  The current plan continues to provide for the upgrade of substantially all streets to have curbs, gutters, and sidewalk enhancements within the current Five-Year Plan.
Other projects outlined in the previous CIP 5 Year Plan remain in the budget and current plan; however the timing of some projects has been extended to match when funds become available. Construction costs have risen significantly in recent years due to energy cost increases. New sales tax collections from retail stores at Merriam Pointe and Merriam Village have been slow to materialize.

Residents with additional comments or concerns are always encouraged to visit with their council representative. Contact for Merriam's Governing Body members can be found online by clicking here.

Merriam's municipal budget is coordinated through the City's Finance Department. For more information about the City's operating or capital improvement budget, contact Cindy Ehart, Finance Director at (913) 322-5504, or Phil Lammers, City Administrator at (913) 322-5501.