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Executive Summary:
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Since the City Manager presented the Recommended Budget at
the May 9 work session, additional information has been collected about
revenues and expenditures. This information and the resulting changes to
revenues and expenditures, as well as some citizen feedback received, is
summarized below:
- Revenue Projections. The 2018 recommended budget was
prepared with only three months of revenue collections in 2017 and
without property tax estimates from Douglas County. Significant changes
are highlighted below.
- Property Tax. The Recommended Budget assumed a
2% increase in assessed valuation over the assessed valuation used to
build the 2017 Budget. The County Appraiser’s estimate for the
assessed valuation was received on June 7 and is $985,461,101. This is
an increase of $37,934,800, or 6% over the assessed valuation used to
build the 2017 Budget. The result is an increase in the projected
revenue for three funds:
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Fund Name
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Additional
Revenue
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General Operating Fund
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$ 791,000 948,000
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Public Library Fund
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163,000
100,000
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Bond and Interest Fund
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360,000
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TOTAL
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$1,314,000 1,408,000
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Despite the increase in assessed
valuation, staff continues to recommend a 1.25 mill increase in the mill levy
for the Bond and Interest Fund in order to sufficiently fund the proposed
multi-year Capital Improvement Plan.
- Sales Tax. The original budget assumed sales
tax proceeds would increase 2.2% over the projected 2017 amount.
However, recent sales tax collections have been significantly less than
originally projected. As a result, budgeted revenues have been reduced
as follows:
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Fund Name
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Reduced
Revenue
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General Operating Fund
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-$563,000
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Public Transportation Fund
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-94,000
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Infrastructure Sales Tax
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-110,000
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TOTAL
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-$767,000
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- Franchise Fees. Revenue from franchise
agreements permits have been decreased by $241,000, based on the
collections received year to date below this period last year.
- Charges for Service. Revenue from building
inspections and permits have been increased by $114,000, based on the
collections received year to date that continue to exceed original
projections.
- Expenditure Adjustment. Significant changes to expenditures
made since the recommended budget was released are highlighted below.
- Longevity. The City Manager recommended the
budget for longevity be reduced from the rate of $4/month of service
for eligible employees to a rate of $2/month of service. However, the
language of the Memorandum of Understanding includes language that
longevity will be budgeted at a rate of $4/month of service. While
these agreements clearly state that longevity is a discretionary
payment, the budget for longevity has been increased the rate of $4/month
of service. In November of 2018, when the City Commission considers
making the longevity payment, the City Manager will recommend funding
at the rate of $2/year. The impact to add the longevity for all funds
is an increase of $279,500. The impact for the general fund is
$168,000.
- Economic Development. The budget for economic
development was able to be reduced by $50,000 due to an entry error that
was discovered since release of the recommended budget.
- Social Service Funding Advisory Board Recommendations.
The Recommended Budget included funding for social service agencies at
the same level as 2017 but did not recommend allocations to individual
agencies. The Social Service Funding Advisory Board met in late May to
review applications for funding and developed the attached recommendations
for allocation. The rationale of the Board, found in the minutes from
their meeting on April 26, 2017, is also attached. Staff seeks
direction should the Commission wish to modify these recommendations.
- Feedback. The public was offered an opportunity to
provide feedback on the City Manager’s Recommended Budget via a survey
on Lawrence Listens. A summary of the responses is attached. Public
Comment will also be received during the work session on June 13.
As shown on the attached budget calendar, the City
Commission will determine the maximum amount of expenditures for the 2018
Budget at their meeting on July 11. Staff seeks direction from the City
Commission if any changes are desired prior to that meeting.
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