Memorandum
City of Lawrence
City Manager’s Office
|
DATE: |
6/17/2011 |
|
TO: |
David L. Corliss, City Manager |
|
FROM: |
Casey Toomay, Budget Manager |
|
CC: |
Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager / City Clerk |
|
RE: |
Options for Mill Levy for 2012 Budget |
Pursuant to your request, a summary of options for increases to the mill levy for the 2012 budget is provided below.
Background
The City’s mill levy is currently 26.697 mills. For purposes of building the 2012 budget, it is assumed that the assessed valuation will decrease one percent (1%.) This means that one mill is equivalent to approximately $844,000. However, because of property tax appeals and late payments, the City only assumes that we will receive ninety-seven percent (97%) of the revenue generated by the mill rate.
Options
The attached options show what level of mill levy increase would be necessary to fund a variety of previous commitments, needs, and priorities of the community.
· Option A - Voter Approved Commitments. This option shows the voter approved mill increases to support the cost of issuing debt for construction of the Lawrence Public Library expansion. In addition, voters approved a mill levy increase of up to .5 mills for the operations of the expanded facility. Because construction isn’t anticipated to be complete until 2013, the increase for 2012 is only recommended to be 0.2 mills. Total mill increase needed – 1.7 mills
· Option B – Maintain 2011 Program Level. This option shows the mill levy increase that would be necessary to maintain 2011 programs in the general fund. It assumes the increases to the mill levy needed for the library. In addition, while MOU negotiations are on-going and no agreement has been reached, the option includes funding for step increases and competencies for employee groups covered by Memoranda of Understanding, and an equivalent merit pool for non-MOU covered employees. There is no general wage adjustment, also known as a COLA, included in this option. The option provides the resources needed to retain the existing healthcare plan design rather than move to the high deductible plan as recommended by the Healthcare committee for 2012. Finally, this option includes some funding for public safety radio replacement as required by federal mandate. Total mill increase needed – 3.3 mills
· Option C. Modified 2011 Program Level. This option includes the mill levy for the Library as well as the compensation adjustments for MOU and non-MOU covered employees as outlined above. It also provides for the federally mandated radio replacement. It does not retain the existing healthcare plan design or retain a detective added in 2011 with a grant. Total mill increase needed – 2.4 mills
· Option D. Modified 2011 program Level with Grant Funded Detective. This option assumes the increase for the library and resources for compensation adjustment for employees as outlined above. If also retains the grant funded detective. It does not provide for the federally mandated radio replacement. It also assumes implementation of the high deductible healthcare plan as recommended by the Healthcare Committee. Total mill increase needed – 2.2 mills
· Option E – Street Maintenance Emphasis. This option assumes the increases needed for the library and resources for compensation adjustment for employees. In response to the Citizen Survey, this option also provides additional resources for street maintenance, including additional funding for pavement marking throughout the City. Total mill increase needed – 2.2 mills
· Option F – Modified Healthcare Plan Design. This option assumes the increases for the library and for compensation for employees. It also modifies the recommendation of the healthcare committee and provides additional city funding for healthcare, which results in a lower deductible for employees. Total mill increase needed – 2.3 mills
· Option G – Police Emphasis – 5 additional positions. This option assumes the increases for the library and employee compensation. It also provides additional resources for the police department in response to the memo provided by the Police Chief. Specifically, it would provide for the retention of the grant funded detective, four police officers, as well as funding to address some equipment needs of the department. Total mill increase needed – 2.6 mills
· Option H – Police Emphasis – 9 additional positions. Similar to Option G, this option assumes increases for the library and employee compensation. It would provide additional resources for the grant funded detective, five police officers, and three sergeants, as well as funding for department equipment needs. Total mill increase needed – 3.1 mills
· Option I – Police Emphasis – 14 additional positions. This option assumes increases for the library and employee compensation. It would also provide additional resources for the grant funded detective, ten police officers, and three sergeants, as well as funding for department equipment needs. Total mill increase needed – 3.6 mills
· Option J - Fully Fund Radio Mandate from General Fund. This option assumes increases for the library and employee compensation. It also provides an increase for the replacement of $2.08 million of public safety radios. Total mill increase needed – 4.6 mills
· Option K – KPERS and KP&F Increases. This option assumes increases for the library and employee compensation as previously outlined. It also provides resources for the increase in the City’s contribution to the Kansas Public Employees Retirement System (KPERS) and Kansas Police and Firemen’s Retirement System (KP&F.) Total mill increase needed -2.7 mills