HomeMy WebLinkAboutCity of Olathe - Public Financial ReportPopular
Annual
Financial
Report
CITY OF OLATHE, KS
For the Fiscal Year Ended
December 31, 2020
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FROM THE DIRECTOR’S DESK
To the residents of Olathe,
Our goal at the City of Olathe is not only to provide excellent financial stewardship of public
dollars, but also to inform residents of our progress through documents like this one, the
2020 Popular Annual Financial Report (PAFR).
In this report, you’ll find information about how we collect, allocate, and administer your
tax dollars, as well as key goals and accomplishments from various departments within the
City. The information contained in the report comes from an extensive and much more
detailed document, the Comprehensive Annual Financial Report, which is developed by
independent auditors.
Finally, I’m happy to announce that the City of Olathe has been awarded the Certificate
of Achievement for Excellence in Financial Reporting by the Government Finance Officers
Association. This is the 42nd consecutive year of recognition.
You can find more information on our finances and reports online at
Olatheks.org/Government/Finance-Services/Financial-Reports
Dianna Wright
ECONOMY, DIRECTOR
ABOUT THE PAFR
The 2020 PAFR provides a basic overview of the City’s financial performance for the
fiscal year ended December 31, 2020.
This summarized financial report is intended to increase transparency around the
City’s finances and to present useful information from the much more detailed
Comprehensive Annual Financial Report and the City’s budget, in a concise and easy
to read format.
This report is not intended to replace the Comprehensive Annual Financial Report,
which is prepared in conformity with Generally Accepted Accounting Principles (GAAP)
and is fully audited. This report only presents information for the City’s General Fund
and selected restricted funds used by the City. It is not intended to represent all the
City’s governmental and proprietary funds.
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TABLE OF CONTENTS
Leadership Team 7
Form of Government 8
Community Profile 9
Top 10 Employers 10
Tax Explanation 11
General Fund 13
Expenditures 14
2040 Plan 15
Quality of Life 16
Infrastructure 17
Exceptional Services 18
Economy 19
Public Safety - Fire 20
Public Safety - Police 21
City Administration 22
Budget Principles 25
Contact Us 26
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LEADERSHIP TEAM
J. Michael Wilkes
CITY MANAGER
Susan Sherman
DEPUTY CITY MANAGER
Jeff DeGraffenreid
FIRE CHIEF
Mary Jaeger
INFRASTRUCTURE, DIRECTOR
Mary Ann Vassar
CITY AUDITOR
Tim DannebergEXTERNAL AFFAIRS AND ISSUES MANAGEMENT, DIRECTOR
Katie McElhinney
MUNICIPAL JUDGE
Mike Sirna
QUALITY OF LIFE, DIRECTOR
Ron Shaver
CITY ATTORNEY
Erin Vader
EXCEPTIONAL SERVICES, DIRECTOR
Mike Butaud
POLICE CHIEF
Dianna Wright
ECONOMY, DIRECTOR
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W 95TH ST
W 135TH ST
SANTA FE ST
W 167TH ST
W 95TH ST
PFLUMM RD
QUIVIRA RD
W 119TH ST
COLLEGE BLVD
W 143RD ST
W 151ST ST
W 159TH ST
W 199TH ST
LONE ELM RD
WOODLAND RD
RIDGEVIEW RD
BLACK BOB RD
CLARE RD
CEDAR NILES RD
MOONLIGHT RD
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CITY OF OLATHECITY OF OLATHE
DISCLAIMERThe City of Olathe makes no representations of any kind,including but not limited to warranties of merchantability orfitness for any particular purpose or use, nor are any suchwarranties to be implied with respect to the info, data, orservice furnished herein.
JUNE 2021 4
John BaconMayor
Adam MickelsonWard 2
Kevin GilmoreWard 3
Larry CampbellWard 1 &Mayor Pro Tem
Wes McCoyAt Large
Marge VogtWard 4
Karin BrownleeAt Large
FORM OF GOVERNMENT
In 1986, Olathe voters selected a modified mayor-council-manager form of
government. Under Charter Ordinance No. 28, this form of government calls for a
Mayor and two Council members elected by the City as a whole and four Council
members elected by wards.
The Mayor, four ward representatives and two at-large Council members are elected
to four-year staggered terms.
The governing body is generally referred to as the “City Council.” As the policy makers,
the City Council passes resolutions and ordinances, approves the budget, appoints
citizens to advisory boards, and hires the City Manager, Municipal Judge and City
Auditor.
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COMMUNITY PROFILE
POPULATION
140,858
PER CAPITA
PERSONAL INCOME $75,670
UNEMPLOYMENTRATE3.5%
ACRES OFPARK LAND1,978
TOTAL LANE MILES OF PAVED STREETS1,300
TOTAL REVENUE
$189,935,346
TOTAL EXPENSES
$173,035,789
SQUARE FEET OF PARK SPACE PER PERSON612
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TOP 10 EMPLOYERS
Employer # of Employees % of Total City
Employment
Olathe USD 4,000 2.75%
GARMIN International 3,685 2.53%
Farmers Insurance 3,000 2.06%
JOCO Government 2,000 1.37%
Olathe Medical Center 1,700 1.17%
Convergys 950 .65%
City of Olathe 850 .58%
Honeywell 850 .58%
Sysco Foods 780 .54%
TransAm Trucking 700 .48%
SALES TAX
Kansas is one of 45 states plus the District of Columbia that levies a sales
tax, and compensating use tax, which is paid to out-of-state retailers on
goods and merchandise purchased from other states and used, stored,
or consumed in Kansas. In addition to the state sales tax, some local
jurisdictions in Kansas have the option of imposing a local sales tax. Olathe
has three sales taxes: a 1% general sales tax, as well as a .375% and
.125% tax to specifically fund street maintenance and parks, respectively.
Any change in sales tax must be approved by a majority of voters.
TAX EXPLANATION
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PROPERTY TAX
Property taxes are imposed by states, counties, cities, and other taxing
entities and is the second largest source of revenue for the city General
Fund. Property taxes are calculated based on individual taxing entities
“mill levy.” Olathe property owners’ taxes go to fund not only the city
government, but the county, state, community college and school district.
For more information on how your property taxes are calculated, visit
OlatheKS.org/Government/Finance-Services/Taxes-and-Fees/Property-Tax.
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GENERAL FUND
Olathe has many dedicated funds to keep track of tax revenue and budget for
specific needs. The largest of these, the General Fund, pays for most major
government functions. Other funds (included in the next section) have more
specific restrictions for where money can come from and for what purposes it
can be used.
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EXPENDITURES
Below is an explanation of some of the major restricted funds used by the City, along
with their actual expenditures during 2020. This includes transfers to other funds
from which the money is spent on projects or normal operating expenditures.
Economic Development Fund: $950,000
Accounts for monies provided from the
transient guest tax for the purpose of
funding economic development and tourism.
Library Tax Fund: $6,337,477
Accounts for monies received from the
annual tax levy and transfers to the Library
Operating Fund for the operation of the
Olathe Public Library.
Park Sales Tax Fund: $3,792,997
Accounts for the one-eighth cent sales tax
collected for the construction of various park
projects.
Recreation Fund: $5,037,270
Accounts for recreation activities
administered by the City. All activities
necessary to provide such services are
accounted for in this fund including, but
not limited to, administration, concessions,
aquatics and sports.
Solid Waste Fund: $15,202,071
Accounts for the provision of solid waste
collection and disposal services to the
residents and businesses of the City.
Storm Water Fund: $4,871,550
Accounts for monies received from monthly
residential and commercial fees for the
enhancement of the City’s storm water
management system.
Street Maintenance Sales Tax Fund:
$10,977,403
Accounts for the three-eighth cent sales tax
collected for the maintenance of streets.
Water and Sewer Fund: $46,865,112
Accounts for the activities of the sewage
treatment plant, sewage pumping stations,
collection systems, water production
plant, water distribution system, and the
environmental lab.
Other Funds: $74,110,750
• Central Garage Fund:
$6,171,369
• Debt Service Fund:
$27,769,056
• Facilities Maintenance Fund:
$1,167,128
• Fire Levy Fund:
$3,982,623
• Motor Fuel Fund:
$3,643,610
• Personal Computer Replacement Fund:
$509,385
• Risk Management Fund – Combination
of Work Comp, Other Benefits, General
Liability, Health/Dental:
$20,509,577
• Special Alcohol Fund:
$450,463
• Special Tax Financing Fund:
$5,874,811
• Special Park and Recreation Fund:
$996,841
• Vehicle and Equipment Replacement Fund:
$3,035,887
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2040 PLAN
Established in Spring 2018, The “Olathe 2040: Future Ready” Strategic Plan
is founded on five focus areas: Future Ready, Quality of Life, Infrastructure,
Economy, and Exceptional Services. This plan was developed with the help of
more than 3,000 residents and 100 City staff members and will help guide the
City for the next 20 years.
Following the creation of the strategic plan, the City government underwent a
reorganization, moving many City departments under four new “focus areas”
to better support the success of the 2040 plan: Economy, Exceptional Services,
Infrastructure and Quality of Life.
The following pages include accomplishments from the various focus areas and
an overview of each department. They do not contain financial information as
the 2020 budget was produced prior to the reorganization.
The plan may be found at
OlatheKS.org/Government/Olathe-2040-Future-Ready.
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QUALITY OF LIFE
Departments
Library • Parks & Recreation • Arts & Events • Animal Control • Code Enforcement •
Housing & Transporation • Information Technology
Accomplishments
• Completed a new library restructure that aligns with Olathe 2040 strategic planning
and allows for a more nimble workforce to better position the Olathe Public Library
for the opening of the new
Downtown Library in 2023.
• Received a Freedom’s Frontier
grant to research African
American history in Johnson
County and create a lesson
plan for educators.
• Over-laid the Indian Creek
Trail from Black Bob Road to
Pflumm Road.
• Developed and implemented
a plan for long-term
maintenance and preservation
of the City’s permanent
sculpture collection.
• Completed a data center architecture upgrade with modern private cloud
technology and retired multiple legacy platforms.
• Migrated all city departments to Office 365 for email and communications.
Director
Mike Sirna
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INFRASTRUCTURE
Departments
Engineering • Vehicle Maintenance • Field Operations • Facilities • Transportation •
Environmental Services • Parks Construction • Stormwater • Solid Waste
Accomplishments
• Completed construction of Lone Elm Road, Old 56 Highway to 151st Street
Improvements, which included the first continuous flow intersection in the
state of Kansas.
• Completion of the new Indian Creek Park by the Library.
• Ranked No. 23 in the nation, up from 43 in 2020, by the 100 Best Fleets in
North America program and Governing Magazine.
• Completed clearwell, basin, lime feed and alternative disinfection
improvements at Water Treatment Plant 2.
• Achieved a solid waste diversion rate of 39.1%, exceeding the national
recycling and diversion average of 35% while maintaining low contamination
rates.
Director
Mary Jaeger
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EXCEPTIONAL SERVICES
Departments
Organizational Development • Human Resources • Communications • Customer
Experience • City Clerk • Community Engagement • PMO
Accomplishments
• Received Kansas City Business Journal Healthiest Employer designation and
the Greater Kansas City Chamber of Commerce Healthy KC Platinum Level
Award recognizing the City’s commitment to
employee wellbeing.
• In 2020, City employees completed 1,349
training classes with a 95%+ satisfaction rating
for quality of and access to blended learning
opportunities.
• Developed diversity, equity, and inclusion plan.
• Implemented Phase I of the City’s intranet
redesign project.
• Piloted customer experience embedded
partner model with Library staff to align
customer expectations with staff support
priorities to ensure optimal experiences for
both parties.
• Launched online liquor license and massage
therapy registrations in the first phase of the
enhanced online service portal on OlatheKS.org.
• Processed more than 600 Kansas Open Records Act (KORA) requests.
• Established a citywide project governance process to execute on projects
more efficiently by applying limited resources to the City’s top priorities.
Director
Erin Vader
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ECONOMY
Departments
Finance/Accounting/Procurement • Economic Development • Budget/Performance
Management • Planning • Building Inspections • Development Engineering •
Knowledge/Asset Management
Accomplishments
• Facilitated and provided insight for prioritizing, spending, and tracking CARES
Act funding received ($4,265,008) and the first half of the American Recovery
Program allocation ($7,459,245).
• Converted Codes, Olathe Housing Authority, and Customer Services to
electronic certified mail reducing costs by 14% annually.
• Collaborated with Communications to build an Olathe 2040 Progress
Dashboard to monitor progress made toward our Olathe 2040 goals.
• Maintained the City’s AA+ Bond Rating with Standard & Poor’s and Fitch rating
agencies for General Obligation Bonds and AA Bond Rating with Standard &
Poor’s for Water & Sewer Revenue Bonds.
• Awarded 30+ Neighborhood grants through the Healthy Neighborhoods
initiative and five Storefront
Improvement Grants as part
of the Envision Downtown
Olathe Program.
• Expanded the utilization of
technology allowing for the
continuity of services during
the pandemic, increased
efficiency, enhanced data
visualization, and expanded
data sharing both internally
and externally.
Director
Dianna Wright
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PUBLIC SAFETY - FIRE
Accomplishments
• Station modernization has begun to provide an equitable work environment
for all members of the department.
• Opened permanent Fire Station 8 to improve service delivery.
• Opened the Olathe Fire Academy to provide training opportunities in Olathe
(keeping units in the City and available to respond).
• Procured new Records Management System to improve data collection.
• Published five-year Fire Department Strategic Plan built on community input.
• Revamped public education program to meet changing needs including
virtual delivery.
Chief
Jeff DeGraffenreid
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PUBLIC SAFETY - POLICE
Accomplishments
• Secured additional grant funds for the department (LEMHWA, COVID, Byrne,
Wellness Grant, BVP).
• Developing new evidence management system to replace MIDAS.
• Maintained and/or improved crime and clearance rates through an effective
approach to preventing, reducing and solving crime.
• Maintained below a five-minute average response time for emergency calls.
• Led the region with the continuing efforts and expansion of the Mental
Health Co-Responder program to include suicide survivor follow-up program
and creation of Cop Culture training.
• Implemented Advanced Crisis Intervention Team (ACT).
• Reduced crash rates by 27%.
• Implemented Cordico app giving 24/7 access to wellness programs and
services on mobile applications.
Chief
Mike Butaud
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CITY ADMINISTRATION
There are four non-public safety departments that are overseen directly
by the Olathe City Manager. These are smaller departments that
support the overall work of the city rather than direct service provision.
CITY MANAGER’S OFFICE
Administer policies laid out by city council, prepare annual budget, build
community relationships and work with other government jurisdictions.
City Manager Deputy City Manager
Michael Wilkes Susan Sherman
Accomplishments
• Provided continuity of government services and responded to community
needs during the COVID-19 global pandemic.
• Implemented reorganization of city services to align with the 2040 Future
Ready Strategic Plan.
• Maintained AA+ Bond Rating.
• Received the Leading The Way award for the second year based on
DirectionFinder Citizen Survey.
• Opened Fire Station #8 and Fire Training Academy.
• Completed Indian Creek Park.
• Completed Annual Street Sales Tax Program of Work.
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AUDITOR
Conduct financial-related and performance audits to identify recommendations
for improving operations.
City Auditor
Mary Ann Vassar
Accomplishments
• Completed four audit projects for calendar year 2020.
• Completed risk assessment for 2021, identifying potential risks and cost/
revenue impacts.
• Developed 2021 audit plan.
• Implemented five accounts payable automated audit tests.
• Provided process and control assistance to the City Council and Executive
Management through: ethics report research and resolution, best practice
expertise on accountability practices and accounts payable controls, and
cybersecurity insurance research and benchmarking.
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LEGAL
Serve as city’s legal counsel, oversee easements and rights of way, prosecute
violations of municipal code, monitor court activities and personnel.
Municipal Judge City Attorney
Katie McElhinney Ron Shaver
Accomplishments
• Reviewed or prepared 119 pieces of legislation (73 ordinances & 46
resolutions) and 189 agreements and contracts (with an average review time
of 1.7 business days).
• Continued development of Victim Witness, Community Mediation, and Court
Services Programs.
• Completed Court Security Project and implemented new safety protocols for
Municipal Court staff, visitors and customers.
• Began using JOCO community corrections Adult Residential Center program
to promote a community rehabilitation approach rather than a punitive
approach to justice.
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BUDGET PRINCIPLES
1. The City will continuously evaluate its financial position to ensure stability of
the City to its citizens.
2. The City will minimize the use of long-term debt to finance major projects to
avoid placing debt on future taxpayers.
3. The City will provide a balanced revenue structure which is responsive to
economic conditions.
4. The budget will be prepared in a way that all current revenues will pay the
costs of all current expenditures (balanced budget).
5. The City Council will hold public hearings which will allow public input on
budgetary spending.
6. The budget will establish legal fund level spending limits.
7. The budget will establish maintenance reserves to allow for maintenance of
capital assets.
8. The budget will apply one-time cash revenues to non-recurring
expenditures.
9. The budget will address major capital improvement priorities which have
been prioritized by the City Council.
10. The City will maintain City services through innovative budgeting procedures
and fiscal management to maintain the current mill levy rate.
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CONTACT US
Olathe City Hall
100 E Santa Fe St
Olathe, KS 66061
913-971-8600
OlatheKS.org/Services/OlatheConnect