AUGUST - 2009

County approves FY 2010 Budget with no change in mill levy

It’s official. The FY 2010 Budget for Johnson County is approximately $778 million with no anticipated increase in the mill levy next year.

The existing levy is 23.165 mills, which is the lowest among the 105 counties in Kansas.

On Thursday by unanimous vote, the Johnson County Board of Commissioners adopted the county’s FY 2010 Budget with an estimated mill levy set at 23.165 mills. One mill equals $1 on every $1,000 of a homeowner’s assessed valuation.

The final setting of the FY 2010 mill levy, however, will be established by the end of October with the 2010 property valuations by the Johnson County Department of Records and Tax Administration.

“We approached our budget process cautiously, conservatively, and proactively by taking some necessary steps more than a year ago to address the pending budget challenges,” County Manager Hannes Zacharias said.

“We asked our employees and county departments to make significant sacrifices, and they did. They worked hard to help us keep a firm grip on the budget reins resulting in a FY 2010 Budget that’s fiscally prudent and that carries us through the current tough times.”

The FY 2010 Budget sets the maximum number of full-time equivalent county employees at 4,099.78.

Restrictions in hiring and filling vacant positions have been imposed since mid-December 2008 as part of the county’s budget-tightening measures aimed at both the 2009 and 2010 budgets. The actions were designed to maintain county programs at current levels with no significant service cutbacks or employee layoffs. Johnson County Government currently has 3,628 employees.

Salaries for county employees were frozen in 2009 to help offset a budget deficit of approximately $6 million this year and a projected shortfall of $20.9 million in 2010. The deficits occurred because of state funding reductions, lower assessed valuation, less revenue from mortgage registration fees, and sales taxes.

The FY 2010 Budget includes:

• An average merit pay increase for county employees at 3 percent, the same rate that was suspended in 2009;
  
• Approximately $2 million to reinstate employee pay range adjustments, which also were put on hold this year; and,
  
• A maximum match for the supplemental retirement program for employees at 3 percent, which is unchanged from the 2009 match that was not altered by the adjustments to the current budget.
  

A lifting of the salary freeze and implementation of merit salary increases and pay range adjustments, in whole or in part, for county employees in 2010 will be decided later.

On Thursday, the Board approved a “friendly amendment” to the new budget to eliminate any merit pay increase in the base salaries for all seven commissioners in 2010. The Board also froze its base salaries in the approval of the FY 2009 Budget. The current base salary of a district commissioner is $49,841. The existing base salary for Chairman Annabeth Surbaugh is $86,945.

FYI on Mill Levies:

• The FY 2010’s levy of 23.165 mills for Johnson County Government involves the county’s three taxing districts: County, Library, and Park and Recreation District.
• The estimated mill levy for the county taxing district next year is 17.680 mills, 3.144 mills for the Library taxing district, and 2.341 mills for the Park and Recreation taxing district.
• Ad valorem taxes are expected to generate about $176.4 million, or approximately 27.2 percent of the county’s revenue. One mill of tax is estimated to generate $7.79 million for the County.
• The county’s fiscal year begins on January 1.

FYI on Expenditures and CIP:

• The maximum expenditure authority in the total FY 2010 Budget is set at $778,080,906, including budgeted expenditures of $633.7 million and budgeted reserves of $144.3 million, or approximately 18 percent.
• The FY 2010 Capital Improvement Program (CIP) totals $113.1 million. Excluding stormwater ($11.5 million) and wastewater projects ($67.2 million), which have dedicated funding sources, the CIP features approximately $34.4 million for various capital projects, including:
  • $3.75 million for bus replacement by the Transit Department;
    
  • $14.7 million for the County Assistance Road System (CARS) program (that’s approximately a $700,000 reduction from previous years because of state funding cutbacks);
    
  • $2.3 million for the county’s Bridge, Road, and Culvert Program; and,
    
  • $5.1 million for land acquisition and capital improvements by the Johnson County Park and Recreation District.

FYI on Average Property Taxes:

• The county’s new budget reflects a general lowering of appraised property values in Johnson County because of the current economic downturn. The average home in Johnson County was valued at $251,000 in 2009; the average residential property appraised value in the FY 2010 Budget was set at $249,000.
• The new budget projects that the owner of the average home in Johnson County, valued at $249,000, would pay approximately $663 in 2010 for the county’s portion of their property tax bill. That’s roughly $55.25 a month. In 2009, the average home of $251,000 paid approximately $669 in property taxes, or about the same monthly average.
• The calculations are only for Johnson County Government and do not include other taxing entities, such as the state of Kansas, cities, or school districts.
  
• The estimated FY 2010 county taxes on an average $1,421,647 commercial property would be $8,233.
• The average commercial property in 2009 was placed at $1,523,238 with county taxes of $8,821.
  

A public hearing on the FY 2010 Budget occurred on July 30. By state law, the Board must adopt the new budget each year by August 25.

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County plans temporary close of Olathe DMV Office to move to new site

The Olathe office of the Division of Motor Vehicles (DMV) is moving to a new location that’s only half a mile away.

The existing location at 1327A East Santa Fe Street will be closed on Friday, August 21. The opening at the new site located at 782 North Ridgeview Road (southeast corner of Ridgeview and Kansas City roads) is tentatively scheduled for Monday, August 24.

“We apologize for any inconvenience to our DMV customers,” Johnson County Deputy Treasurer Amy Meeker-Berg said. “We plan to redirect all DMV business to the county’s Mission Office at 6000 Lamar Avenue, which will accommodate our customers during our move in Olathe.”

DMV customers also can renew their registration and license plates through the website of the Treasurer’s Office at http://treasurer.jocogov.org. The website also will provide timely information about relocation of the Olathe office and announce when the new site will be open to the public.

The move has been in the planning process for more than a month since the Johnson County Board of Commissioners authorized a 10-year lease with KC Road Partners, LP, to relocate the DMV Office to the Heritage Crossing Retail Center. The new lease will lower lease costs starting immediately.

The new location is expected:

• to provide better access for residents coming from the 119th and 127th street areas
  and from Santa Fe Street by using Ridgeview Road;
  
• a newer place to do business with better energy efficiency, new exterior systems,
  
• improved signage that’s more visible from roadways;
  
• better customer service with improved customer waiting area and better security; and,
  
• ample parking with 88 more parking spaces.
  

The Olathe DMV Office only serves walk-in customers in the processing of license tag renewals, issuing motor vehicle and trailer titles, maintaining vehicle registration records, and licensing and monitoring Kansas vehicle dealers.

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Twelve projects receive 2009 funding from Johnson County Heritage Trust Fund

Funding from the Johnson County Heritage Trust Fund was authorized Thursday, August 13, by the Johnson County Board of Commissioners for 12 historical projects in eight cities.

Recommendations for $250,000 in 2009 funding were presented to the Board by the Trust Fund’s Grant Review Board, which reviewed requests involving 14 applications seeking $408,893.

Five projects received full funding. One involved a request for $9,431 by Johnson County Museum to refurbish the interior of the Lanesfield School, a one-room schoolhouse museum in Edgerton. The 140-year-old structure has been listed on the National Register of Historic Places since 1988 when the last restoration was completed.

The interior refurbishing is the last of a three-phase project, started in 2003, to restore the historic school. The final phase includes refinishing the hardwood floors; repairing all painted surfaces, some of which have been damaged by roof leaks; repainting the walls and ceiling; and refinishing the wood wainscoting and interior window sills. The total project cost was placed at $11,387.

The other fully-funded requests were:

• $45,664 for an interpretive plan for the Johnson County Museum in Shawnee to expand its story of Johnson County’s suburbanization and national development of suburbs by cities. The total project cost was set at $166,489;
  
• $20,000 to develop an interpretive plan manual for the new Farmstead at Shawnee Town 1929. The project’s total cost was estimated at $44,353;
  
• $5,000 for the Leawood Historic Commission to complete the second phase of a survey involving the homes in the first platted neighborhood of the city. The survey, with a total cost of $8,752, will provide a brief description and photographs of each home or landscape element, original stone islands and statuary, and historic information for an inventory and future evaluation; and,
  
• $1,000 for the Mission Rebirth project to create a historical record of the changes in the large-scale redevelopment that’s occurring in the city of Mission. The ongoing $21,000 project began in 2006 with $6,000 in funding from the Heritage Trust Fund.
  

The Grant Review Board recommended partial funding of seven other requests.

Kansas State Historical Society received $48,670 of a $63,000 request for a marketing plan for the Shawnee Indian Mission in Fairway. Total project cost was $71,455.

The Mahaffie Stagecoach Stop and Farm Historic Site in Olathe will receive $36,000 from a $48,000 request to create an interactive exhibit for children visiting the site’s Heritage Center. Total cost of the project was estimated at $60,840.

The Kansas Educational Foundation for the Deaf and Hard of Hearing applied for $52,173 for a project to bring the “deaf experience” to life through recorded interviews. The recorded documentation of personal experiences by multi-generations of deaf citizens would be used at the William J. Marra Museum of Deaf History and Deaf Culture in Olathe. The review board recommended $33,723 in Heritage Trust funding. Total project cost was placed at $118,573.

The Overland Park Historical Society was awarded $30,000 to create and disperse a 30-minute documentary about William Strang Jr., the developer and founder of Overland Park and builder of the Strang Line that operated from 1906 to 1940. The society requested $35,000 for the $43,400 project.

The other partially-funded requests included:

• $2,225 to support funding a project with a total cost of $13,122 for the Lenexa Historical Society. The funding will be used to digitize approximately 2,000 historical photographs and make them accessible through www.jocohistory.com, a partnership website devoted to digital presentation of the county’s historical resources. The society had requested $4,450;
  
• $11,000 for MidAmerica Nazarene University (MNU) in Olathe to improve public access and increase preservation efforts of the university’s Marge Smith Archives. The archives document the early development of Olathe, conservative Midwestern values, history of church-affiliated institutions of higher education, and the life and history of MNU. The university applied for $13,655 in Heritage Trust funds for the $26,280 project; and,
  
• $7,287 to construct and install an educational interactive project at the county’s Museum of History. It will be the final phase of a three-phase project to upgrade the museum’s “Seeking the Good Life” exhibit. Total project cost was placed at $19,976; the museum had requested $15,300 in funding.
  

The Johnson County Heritage Trust Fund was created in 1991 to help preserve the heritage and history of the county. Revenue for the fund is derived from a portion the county’s mortgage registration fee that exceeds the $100,000 the county is required to contribute to the Kansas Heritage Trust Fund.

On Thursday, the resolution for the 12 projects for 2009 funding by the Heritage Trust Fund was approved by the Board of County Commissioners with no changes to the recommendations from the Grant Review Board. The vote was unanimous.

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Steve Baru is Newest JCPRD Board Member

The newest member of the Board of Commissioners of the Johnson County Park and Recreation District says he sees parallels between his roles as a professional financial advisor and being a Board Member.

"The job of a JCPRD commissioner seems similar to being a trustee for a large estate," said Steve Baru of Overland Park. "As a trustee is responsible for managing the assets in the trust and keeping them from harm’s way, similarly the JCPRD commissioner is responsible for the safe- keeping of the parks. The residents of our community then become the ultimate beneficiaries."

Baru was appointed by Johnson County Commission Chairman Annabeth Surbaugh on July 18. He steps into a seat on the Board previously held by James Azeltine. Baru's term will run through Jan. 31, 2011.

"There are many reasons for my interest in becoming a board member of the JCPRD," Baru said. "The population of our county is expected to keep growing over the coming decades. Parks will be even more important. I’m interested in helping plan for the future and serving the needs of the present. As a life-long Johnson County resident, a member of the business community, an environmental activist, and an investment planner, I understand that there are many different variables that interact with each other in order to achieve a safe and healthy community."

Since April 2004, Baru has been the owner and financial advisor with Baru Investments of Overland Park, which specializes in "socially responsible investing for qualified investors and institutions." His previous positions include nearly four years as a senior investment executive with Archer Alexander Securities, about five and one-half years as a senior investment executive with Berthel Fisher Financial Services, and three and one-half years as an associate vice president of investments with Dean Witter of Kansas City. In addition, he served for about three years as a volunteer member of the Investment Advisory Committee with Sierra Club Mutual Funds.

The new board member holds both a bachelor's degree in economics and a master's degree in business administration from the University of Kansas. His undergraduate studies included international trade and finance and public finance, while his MBA included concentrations in finance, international business and strategic management.

Baru is a native of the Kansas City area and a 50-year resident of Johnson County, He and his wife, Carolyn Hall, who is a counselor at Prairie Trail Junior High School in Olathe, are the parents of one son, Jan, 26.

Baru's community activities are many and varied. He has been involved with the Sierra Club and its national organization including serving on several national committees, and as chair and a member of the board of directors of the Kansas Chapter. He is a member of the Overland Park Chamber of Commerce and has served on the State and Federal Affairs Committee, and the Transportation Task Force. He was a 1998 recipient of a chamber award called "Ordinary People Doing Extraordinary Things for the Community."

He has served on the Kansas Department of Transportation's Long-Range Transportation Plan Advisory Committee, the Mid-America Regional Council's South Connector Study Group, the Kansas City Metro Regional Transit Alliance, and was a board member and chair of the Workforce Investment Board for Wyandotte, Johnson and Leavenworth counties.

In Johnson County, he has been on the County Arterial Road Network Plan Taskforce, the Johnson County Transportation Advisory Board, the Intermodal Transportation Committee, the South Metro Connector Partnership Advisory Board, the Johnson County Citizens' Visioning Committee, and the Johnson County Public Works Strategic Planning Committee.

When asked what he sees as the District's greatest strength, Baru praised staff. "Those that I have known over the years and have met recently seem to be knowledgeable, friendly, and courteous,' he said.

Securing adequate funding and dealing with the encroachment of urban sprawl on wild lands, are among future challenges he sees for the District.

"I am very interested in bike/hike trails but my goal as a commissioner is to help the park system be the greatest value possible to the community," Baru said.

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County participates in MARC Home Remodeling Loan Program

Johnson County has joined 32 other participants in the Home Remodeling Loan Program, a partnership of the Mid-America Regional Council (MARC) and CommunityAmerica Credit Union. The program offers low-interest, fixed-rate home equity loans to homeowners.

The loans can be used for a wide variety of home renovation projects, including window and door replacement, roof repair or replacement, plumbing and electrical upgrades, and add-ons such as new rooms, decks, porches and fences.

The remodeling loan program was created in 2006 by MARC's First Suburbs Coalition, a group of inner-ring suburbs in the Kansas City metropolitan region. Through a bid process, CommunityAmerica Credit Union was selected to manage the loan program. In the first two years, more than 130 loans were made to homeowners, totaling approximately $2.3 million.

Ten cities in Johnson County also participate in the program. They are Fairway, Gardner, Merriam, Mission, Olathe, Overland Park, Prairie Village, Roeland Park, Shawnee, and Westwood.

MARC Home Remodeling Loan Program Details:

• Special discounted rate applies to MARC Home Remodeling Loan Program
  
• Maximum loan amount is $30,000; minimum is $5,000
  
• Flexible terms from 1 to 10 years
  
• Fixed-rate, home equity loans with a one-time advance
  
• Tax-assessed value of the home must not exceed $250,000
  
• Interest may be tax deductible
  
• Home must be owner occupied
  
• Borrowers must qualify per CommunityAmerica lending standards
  
• Borrowers must join CommunityAmerica Credit Union ($1 membership fee) and reside in a participating community

MARC provides online resources at marc.org/loanprogram for examples of home renovations and improvement ideas from remodeling Idea Books.

For information about current interest rates or to apply for a loan, please call CommunityAmerica at (913) 905-6629.

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Five Johnson County commissioners named to steering committees of NACo

Johnson County’s representation on steering committees of the National Association of Counties has grown.

In the past few years, four members of the Board of County Commissioners have been named to the national panels.

It’s now five.

They include Chairman Annabeth Surbaugh and Commissioners Ed Peterson, First District; Jim Allen, Second District; Doug Wood, Fifth District; and Calvin Hayden, Sixth District.

Chairman Surbaugh said Johnson County’s representation on the national panels means they will continue to advance the interests of Johnson County, as well as those of the greater metropolitan region and the state of Kansas, in shaping and influencing national policies affecting the services and operations of the more than 3,000 counties in the United States.

“Being involved with NACo and its steering committees means we’ll have the opportunity to share some of our community’s successes and challenges with leaders from across the country, and learn more about how their communities are handling similar situations,” she said.

“More importantly, it means that Johnson County is represented not only at the local, regional, and state levels, but it assures us a seat at the table with federal officials in expressing our positions and working to gain a better appreciation for the needs of local communities. It allows the chance to be our community’s voice in Washington.”

Commissioners Allen and Hayden are new appointees to NACo’s steering committees. Both are serving their first year of a four-year term on the Board since being elected last November.

Commissioner Allen was appointed to the Transportation Steering Committee; Commissioner Hayden was named to the Justice and Public Safety Steering Committee.

The other three commissioners were reappointments, including:

• Chairman Surbaugh and Commissioner Peterson to the Environment, Energy & Land Use Steering Committee. She has served on panel for 15 years. It will be his sixth consecutive term; and,
  
• Commissioner Wood to the Justice and Public Safety Steering Committee, retaining a seat that he has held since 2005.

NACo’s policies and legislative positions are developed and reviewed by 11 policy steering committees and other panels that annually review and make recommendations on issues and legislation. The policy development process initiated by the committees contributes to the publication of the American County Platform, which NACo uses as a guide to deliver the county government message to the federal administration, Congress, and the American public.

Headquartered on Capitol Hill, NACo is a national policy and advocacy organization representing interests and positions of county government. It provides an extensive line of services, including legislative, research, technical, and public affairs assistance to more than 3,000 units of county governments throughout the nation.

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County Commission chairman reappointed to NACo Board of Directors

Annabeth Surbaugh, chairman of the Johnson County Board of Commissioners, has been reappointed as one of 10 presidential appointees to the board of directors of the National Association of Counties (NACo).

The appointment was made by NACo President Valerie Brown and announced during the national organization’s recent 74th annual Conference and Exposition in Nashville, Tennessee.

A longtime resident of Overland Park, Surbaugh has served on the national board for 14 years since being elected to the county commission 17 years ago. This marks her 12th year as a presidential appointee to NACo’s governing board.

As a NACo board member, she will help shape and influence national policies that provide counties with the resources and support needed to address common challenges and concerns.

“Being on NACo’s board means that Johnson County has a seat at the table with federal officials so we can better express our priorities and needs,” Surbaugh said. “That’s a very natural and obvious part of my job as the Commission Chairman, and I’m pleased to have the chance to be our voice in Washington.”

She added that contact with other county officials allowed her to share some of Johnson County’s success stories, to discuss key issues, and to learn how other counties are addressing challenges similar to those facing the Johnson County community.

Headquartered in Washington, D.C., NACo is a full-service organization providing an extensive line of services to more than 3,000 units of county government in the United States.

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Reports reflect exceptional outlook for Johnson County

Financial and statistical information for the fiscal year ended December 31, 2008, continues to portray an exceptional outlook for Johnson County, Kansas.

Data from three reports the Office of Financial Management presented to the Board of County Commissioners at the Aug. 20, 2009 meeting included these highlights:

• Johnson County’s population has increased approximately 10,000 residents per year since 1999.
  
• Johnson County’s personal income per capita is $54,679, as compared to the State of Kansas at $37,074 and the United States at $38,493.
  
• Johnson County continues to have the lowest mill levy at 23.165, of all 105 counties in Kansas.
  
• Johnson County spends 45.82 percent of its total budgeted expenditures in the areas of Public Safety and Judiciary and Health and Human Services.
  
• Johnson County’s portion of direct and overlapping general obligation net debt accounted for only 1.33 percent of the total public debt burden on the taxpayers in Johnson County.

Chairman Annabeth Surbaugh said the statistics and trends indicate that Johnson County is weathering a challenging economic climate in strong fashion.

“We’re still growing, which means that prospective residents continue to view Johnson County as an outstanding place to live, work and raise a family,” Surbaugh said. “Managing our financial resources well and holding our mill levy while maintaining services and programs means that we’re providing real value to our current residents. Our quality of life should be a source of pride to everyone in Johnson County.”

All of the reports presented Aug. 20 will be disseminated to a variety of external entities, including the County’s bond rating agencies and to the Kansas Secretary of State and the Federal Audit Clearinghouse, as required by law. The reports are now available on the County’s internet website at http://ofm.jocogov.org/defaultacctng.htm.

• The Johnson County, Kansas, Comprehensive Annual Financial Report (CAFR). This document includes the County’s externally audited financial statements and the auditor’s unqualified opinion on those statements. An unqualified opinion is the most favorable opinion that can be achieved.
  
• The 2008 Trend Monitoring Report. This report presents historical financial, demographic, and statistical information to aid in the evaluation of past performance and to assist in future planning.
  
• The Johnson County, Kansas, OMB Circular A-133, Single Audit Report (the Single Audit). The Single Audit presents information about Federal and State grants and the County’s compliance with the terms of those grants.

Johnson County received the Certificate of Achievement for Excellence in Financial Reporting for the 2007 CAFR. The County has achieved this very prestigious award for 21 consecutive years. Of all of the government agencies in Kansas, only 37 achieved the 2007 certification, and only four of those are counties (Johnson, McPherson, Sedgwick, and Wyandotte).

Only 11 governmental organizations in Kansas received both the 2007 CAFR award and the 2007 Budget award from the Government Finance Officer’s Association (GFOA); and of those only two are counties, (Johnson and Sedgwick).

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County approves storage site at AirCenter for five intermodal cranes

Johnson County has given the green light to store parts at a materials storage yard at the New Century AirCenter for five massive cranes that will be used by a planned Burlington Northern Santa Fe (BNSF) intermodal rail hub between Gardner and Edgerton.

The parts will be stored on a seven-acre tract of vacant land that’s part of the Planned Light Industrial Park District at the AirCenter. The application for a five-year conditional use permit for the storage yard was requested by HDR Engineering, Inc., agent for BNSF.

The site will be screened by a berm with evergreen trees, protected by a security fence, and have access from a new driveway all of which will be constructed by the applicant. The maximum height of materials being stored will be 15 feet.

The Southwest Consolidated Zoning Board and the Johnson County Airport Commission, which oversees the AirCenter, both recommended approval of the application. On Thursday, the Johnson County Board of Commissioners agreed with the recommendation, approving the requested permit by unanimous vote.

According to Scott Goehri of HDR Engineering, none of the five cranes will be erected, fabricated, or assembled at the storage site. Delivery of the crane parts will be by approximately 22 rail cars for each crane and off-loaded directly to the AirCenter property. The tallest part is about 13 feet tall, about six feet wide, and about 80 to 90 feet in length.

Scheduling of the delivery has not been announced, but it will occur over about a five-month period. Approximately two cranes’ worth of parts will arrive initially, with delivery of three more cranes’ parts occurring a month or two later, Goehri advised the Southwest Consolidated Zoning Board during its meeting on July 22.

During the zoning board meeting, Goehri said BNSF plans to apply for a permit from the state or county to move the crane parts by semi-trailer truck on a predetermined route to the intermodal site. Each crane is expected to require approximately 50 truckloads to move its parts. The move is expected to take place over a two-to-three-month period.

The route of the truck traffic will be announced prior to the start of the parts move.

BNSF’s intermodal facility and an associated warehouse complex called “the logistics park,” which the Allen Group Inc. will construct next to the new rail yard, have been in the planning stages for more than two years. The intermodal will load and unload containers, many filled with cargo from Asia, from railroad cars to truck trailers.

The 1,300-acre, $750 million project in southwest Johnson County is bounded by Interstate 35 on the south and U.S. Highway 56 to the north, and is astride the BNSF’s main transcontinental rail line.

BNSF and the Allen Group currently are negotiating proposed development agreements and annexation plans with the city of Edgerton regarding the project.

Construction of the rail hub has been placed on a “variable” schedule by BNSF because of a recession-related dip in freight and revenue.

The Kansas Department of Transportation, however, has announced plans to apply for $50 million for the project from the next stimulus transportation package offered by the U.S. Department of Transportation.

The application deadline is Sept. 15 with the winning projects to be announced in February 2010. If the intermodal project receives federal funding, construction is expected to start later in 2010.

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