Proposed Scope of Services for Financial Advisor

 

 

            As the City of Lawrence’s financial advisor you are requested to prepare a report that analyzes various aspects of the city’s capital and operating budgets. When performing comparisons to the city’s operating budget, the budgets of the other Big 12 cities should be used with the exception of Austin.   The Scope of Work is described below:

 

Capital Budget

 

  1. Review the process used by the City of Lawrence to develop its capital improvement budget and note its strengths and weaknesses.   Recommend changes to improve the process if warranted.
  2. Project the debt service fund property tax levy over the next five years.  Include the approved capital improvement budget as well as a list of potential projects that will be provided by city staff.  Also include comments on the possible impact different levels of debt issuance may have on the city’s bond rating.
  3. Review the maintenance needs identified by the city’s staff of the city’s infrastructure and prepare a financing plan to fund desired improvements.  This will also include a review of the current financing plan for the water and sewer system.
  4. Analyze the city’s method of constructing capital projects and recommend changes in procedures that would make the process more efficient and effective.  This will include engineering selection, bid procedures, inspection services and expenditure tracking.

 

 

Operating Budget

 

  1. Compare operating expenditures for the 2001-2005 period for Police, Fire, Public Works, and Parks and Recreation activities.
  2. Compare the amount of funds spent over the 2001-2005 period to maintain infrastructure and the source of funds used.  This will be limited to non-utility related infrastructure.
  3. Compare the annual cost of living increases, merit increases during the 2001-2005 period and the number of steps in the pay plan.  Include how merit increases are budgeted.
  4. Project revenues in the general fund for the period 2007-2011 taking into account legislative changes in the tax base.  Provide the city with documentation of the methodology used so that any models developed can be utilized by the city in future years.
  5. Compare the major sources of revenue in the general fund to indicate over and under reliance on particular revenue sources.
  6. Review the city’s fund balance policy and recommend any changes.