Since March 2010 the City Council and staff have conducted four 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 reviewed priorities during a March 2010 work session and established the following priorities:

1. Code Enforcement
1. Intensify enforcement on all code violations (including housing)
2. Redraft animal ownership ordinance
2. Community Development
   1. Complete the Upper Turkey Creek Drainage Study.
   2. Sustain CIP efforts
   3. Sustain street lighting program
   4. Fund Shawnee Mission Pkwy Transit study for BR/STP  (Bride/Surface Transportation) grants
   5. Review  the sign code
3. Citizen Advocacy
   1. Rebuild the City website and provide for more on-line business
   2. Consider ward-wide informal gatherings for neighborhood issues
   3. Conduct citizen satisfaction survey
4. Economic Development
   1. Re-think development agreements (Village & Pointe)
   2. Work with Downtown Merriam Partnership and small businesses
   3. Promote existing developments
5. Administrative Focus
   1. work with DOC to complete census and consider redistricting
   2. Code codifications and research ordinances for conflicts
6. Sustainability
   1. Consider Alternate Development Scenarios polices as adopted by MARC
   2. Consider solid waste policies adopted by Johnson County
7. Improve Planning Process
   
   1. Consider ward redistricting
   2. Update Comprehensive Plan

The proposed budget documents were presented in a public hearing on July 26th 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:

• Decline in sales tax collections due to national recession (2009 City Sales Taxes decreased 10% from 2008)
• Decline in net property valuations (3.6% in 2009; 3% in 2010 per preliminary estimates)
• Projected declines in fund balance for the General Fund

No increase in the City of merriam property tax mill is planned for 2011. 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: $471.82 ($39.32 per month)
Current (2008) Mill Rate: 27.352

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

$17,250 X 27.352 = $471,822
$471,822 ÷ 1,000 = $471.82

Final mill levies for 2010 (funding 2011 budgets) will not be set until October 2010. Below you will find Johnson County 2009 mill levies funding 2010 budgets. The median city mill levy among Johnson County cities is 26.574 mills.  Merriam’s mill levy is .778 mills above the median, at 27.352.  Twelve cities have mills less than Merriam; six cities have mills greater than Merriam.

Merriam ranks #10 out of 19 for total tax burden among Johnson County cities based on the 2009 mill.  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 2010 (funding 2010 budgets) will not be available until October 2010.

The following is an overview of general fund revenue sources, followed by a detailed projection for the City's 2011 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).  

• 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 currently in bankruptcy proceedings but is also marketing the property.
• Timing of future construction on the site is not known.

The following is an overview of general fund expenditures for the City's 2011 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 2011 operating budget was established with a focus on delivering quality City services and programs according to the priorities outlined by council.  However, funding was discontinued for the Easy-Ride service which provided transportation to certain eligible residents.  The governing body determined that the cost of this program compared to the number of residents served did not justify continued funding.

Major Equipment Purchases: The 2011 Equipment Reserve Fund budget includes the replacement of a fire department pumper truck for $500,000 and two police patrol vehicles for $44,000.  Public Works will replace one skid loader and one tractor for $78,500.   Campbell Park swing-set and Aquatic Center pool features are scheduled for replacement at a cost of $42,000.  Funds to upgrade and replace computer equipment and software are also included.

Funding for several staff positions continues for 2011.  Assistant City Administrator, Fire Marshal, Neighborhood Services Manager and Management Intern positions will remain vacant for 2011 as in 2010.  Responsibilities of each position are shared by other staff members in the appropriate departments.

Merriam’s CIP is funded chiefly by sales taxes, including amounts transferred from the General Fund according to City Council policy.  In 2011, transfers to the Capital Improvement Fund are reduced by $87,000 from this level in order to balance the General Fund. The 2011 transfer reduction will have no immediate impact to the timing of scheduled projects. However, increased construction costs in recent years have led the City to delay commencement of some projects to provide for accumulation of adequate funds.   Currently no funding is provided for the Merriam Enhancement Program, Sidewalk Program or South Park Square.  The current 5-Year Plan provides for the upgrade of approximately 90% of our streets to include curb and gutter enhancements.

Merriam voters recently approved a new ¼ cent sales tax dedicated to street and stormwater improvements which will become effective January 1, 2011.  This tax replaces the existing ¼ cent sales tax dedicated to streets set to expire on December 31, 2010.  The new tax will generate approximately $1 million per year and will be collected through 2020. The tax will fund several important projects including Johnson Drive Bridge over Turkey Creek, Shawnee Creek Drainage and 70th Terrace Drainage Box.

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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.