Page 83 - KCMO Parks Master Plan 2032

Friends of the Zoo, and the Black Archives of Mid- Other Funding Sources
America who operate these cultural institutions
for KCMO. About 4% or $2.1M will finance debt This plan will examine potential outside funding
obligations of the department such as the Swope sources in greater detail in the organizational
Soccer Village or projects from the last round stability subheading in the Implementation
of general obligation bonds. Unfortunately, chapter. However, the process of examining 14
a 7% slice of this doughnut consists of sales years of KCMO adopted budgets has generated
tax redirections, i.e. sales tax money, that the questions about other governmental funds that
department never sees. These redirections are could be available to the Parks and Recreation
for sales tax dollars generated in one of the city’s Department. For instance, Local Use Tax
many tax increment financing (TIF) districts, revenues seem to be absent from all Parks and
where infrastructure was paid for through tax Recreation Department funding. Why is this?
incremental financing. Thus in FY2024, the Local use taxes, which are levied on the sales of
department must watch over $4.1M of its park online goods and services to KCMO residents,
sales tax dollars go back to finance those are supposed to be dispersed to governmental
existing TIF projects. A 3% slice ($1.7M) also gets agencies at rates identical to sales tax. Therefore,
transfered to the General Fund and is funneled 1/2-cent should go to parks and rec. Local use
into various divisions within City Hall. As the taxes fund almost exclusively the General Fund.
doughnut shows, these obligations leave virtually In FY2024, the city expects to see $67M in local
nothing left in the special revenue fund for capital use tax revenue which would equate to almost
outlay. In FY2024, only $82,751 is budgeted for $6.5M for parks. However, the department will not
capital spending. see that amount of money from the General Fund
in FY2024. So where are these use tax dollars
This fund is financed almost entirely (85%) by going? Another source of public tax revenue that
the 1/2-cent parks sales tax. The second largest the Parks and Recreation Department misses
chunk of revenue comes in the form of $4.6M out on is Convention and Tourism Tax revenue. In
transfer from the General Fund. Perhaps this FY2024, the City expects to see these revenues
is meant to partially offset the other transfer top pre-pandemic totals at $59.5M. These
out and the sales tax redirections. Roughly 5% monies go almost exclusively to special revenue
of the funding, or a little over $3M comes from funds, however none of them are ones (like Golf
service charges. These $3M equate to all the or Museum or Parks and Rec) that fund this
revenue generated by recreation programming at department. Why is this? Does this great park
parks and community centers, also know as the system and all its facilities not help to attract
community services division. Keep in mind that visitors to the City of Fountains?
this is a division which spends 19% ($14.6M) of
the department budget, thereby achieving a cost Takeaways
recovery of about 21%. Unfortunately, one source
of revenue that has dropped off in recent years The department must consider ways to trim the
is grant funding. While grants are never going largest portion of its budget, natural resources.
to fund a significant portion of a department’s It must make strategic decisions on how to
budget, they have yielded over $300,000 in 5 maximize its limited capital outlay in the face of
out of the last 10 fiscal years. In FY2024, they mounting deferred maintenance. It should focus
are budgeted to bring in $0. If this department is on improving the cost recovery of its community
going to successfully implement this master plan, centers and restoring grant funding. Additional
it will need to maximize its sales tax revenues as funding through local use tax and convention and
well as diversify its revenue base. tourism tax dollars should also be sought.

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