Memorandum
City of Lawrence
City Manager’s Office
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Date: |
July 28, 2011 Updated 08/02/11 |
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To: |
David Corliss, City Manager |
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From: |
Casey Toomay, Budget Manager |
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CC: |
Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager / City Clerk |
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RE: |
City Commission Items Related to Adoption of the 2012 Budget |
Please place the following items on the City Commission agenda for consideration at their August 2, 2011 meeting:
Per action taken at the July 12, 2011 City Commission meeting, notice of a public hearing to be conducted on August 2, 2011 was published on July 16, 2011 in the Lawrence Journal World. The purpose of the hearing is to answer and hear questions of taxpayers relating to the City Manager’s recommended budget. The publication of the notice of budget hearing and the accompanying budget summary establish the maximum limits of the 2012 budget. Therefore, the City Commission may make changes, as appropriate, subsequent to the public hearing that would involve lowering, but not raising the expenditure levels of the published budget summary.
Per direction of the City Commission, the following adjustments have been made to the City Manager’s recommended budget.
General Operating Fund. The increase in the mill levy for the general fund has been reduced from the City Manager’s original recommended budget to 0.43 mill. The reduction was achieved by the following:
· reducing expenditures from the general fund budgeted for street maintenance and replacing them with proceeds from the infrastructure sales tax. (see attached memo for more information) This will mean delaying replacement of the Hazmat vehicle originally included in the budget, as well as increasing the amount of debt needed for purchases of fire apparatus in the future;
· reducing fuel, streetlights, and other commodities by $166,000; and
· increasing revenues by increasing municipal court fees.
Recreation Fund. The mill levy of 0.242 mill included in the City Manager’s original recommended budget for the Recreation Fund has been eliminated. The revenue will be replaced with an increased transfer of proceeds from the Countywide sales tax. In order to increase the transfer, however, funding for parks and recreation facility maintenance will be reduced by $200,000.
Information on further possible reductions including reducing the number of police positions being added to the budget, eliminating employee longevity, layoffs, etc., can be found in previous study session materials.
The remainder of the budget, as shown on the attached fund summaries (corrected 08/02/11), will be as previously posted.
Commission Action: Conduct public hearing for 2012 proposed budget. Adopt on first reading, Ordinance No. 8650, approving and appropriating the 2012 City of Lawrence budget, if appropriate.
Following the provisions of KSA 79-2925b, staff recommends the adoption of an ordinance noting that in order to maintain essential city services, it will be necessary to utilize property tax revenues in an amount which exceeds the revenues budgeted in the previous year.
Commission Action: Adopt on first reading, Ordinance No. 8651, attesting to the increase in property taxes levied for 2012, if appropriate.
Municipal Court Fee Ordinance
The 2012 Budget assumes an increase in municipal court fees. The attached ordinance established the fees, which will go into effect August 1, 2011. Staff Memo & Attachments
Commission Action: Adopt on first reading, Ordinance No. 8643, establishing municipal court fees, if appropriate.
Enterprise Fund Rate Ordinances
The 2012 Budget assumes increases in the rates customers pay for city water, sewer, and solid waste services. Separately ordinances for each must be adopted.
Solid Waste Service Rates Ordinance. The attached ordinance establishes the rates for solid waste disposal for 2012. In order for the new rates to be effective on the first billing cycle for 2012, the ordinance must become effective no later than November 15, 2011.
Commission Action: Adopt on first reading, Ordinance No. 8644, establishing solid waste service rates, effective November 15, 2011, if appropriate.
Water Service and Sanitary Sewer Service Rates Ordinance. The attached ordinance establishes the rates for water and sanitary sewer services for the year 2012. The rate increase will support a number of capital projects, which are prioritized in the attached memo.
Commission Action: Adopt on first reading, Ordinance No. 8648, establishing water and sanitary sewer service rates, effective November 15, 2011, if appropriate. Approve wholesale water rates, effective November 15, 2011, if appropriate.
System Development Charges Ordinance. For the year 2012, increases in the system development charges for new water utility and wastewater utility connections are recommended.
Commission Action: Adopt on first reading, Ordinance No. 8647, establishing system development charges for 2012, effective January 1, 2012, if appropriate.
Budget Calendar
The remaining dates related to adoption of the 2012 budget are shown below.
Tuesday, August 9 Budget ordinance second reading
Wednesday, August 10 Budget ordinance sent to LJW for publication
Thursday, August 25 Deadline to file budget with County Clerk
Thursday, December 1 County submits budget to State of Kansas