CITY COMMISSION AGENDA ITEM

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Department:

City Manager’s Office

Commission Meeting Date: July 11, 2017

Staff Contact:

Casey Toomay, Assistant City Manger

Recommendations/Options/Action Requested:

 

Authorize publication of the 2018 budget summary and establish August 1, 2017 as the public hearing date, if appropriate.

 

Executive Summary:

Budget Summary / Notice of Public Hearing

Under K.S.A. 79-2929, a public hearing on the proposed budget must be held and notice of the hearing must be given at least 10 days prior to the hearing. The required budget summary/notice of public hearing document sets the upper limit of the 2018 expenditure budget and the mill levy rate.

 

Once the summary/notice of public hearing is published, the budgeted expenditure amount and the mill levy rate can be reduced but cannot be increased.

 

The attached notice sets the public hearing for August 1, 2017 and establishes a maximum expenditure level for 2018 of $255,290,000. This includes the recommended mill levy increase of 1.25 mills for the debt service fund for a total recommended mill levy rate of 33.268 mills.

 

The budget also assumes resources from utility rate increases (water and wastewater, solid waste, and stormwater.)  Should the City Commission not adopt the recommended rate increases, budget reductions will be necessary in the utility funds. 

 

Adjustments Since June Worksession

On June 13, 2017 an updated City Manager’s Recommended Budget was presented that showed the total expenditures of $196,990,000. Since then, some additional expenditure adjustments have been made. These adjustments are summarized below. 

 

Fund Name

2018 Rec. Expenditure Budget as of 6/13

2018 Rec. Expenditure Budget as of 7/11/14

Adjustment

Description of Adjustment

Recreation

 6,035,000

 6,032,000

 (3,000)

healthcare

Special Gas Tax

 2,930,000

 2,922,000

 (8,000)

healthcare

Water and Wastewater

 45,545,000

 45,451,000

 (94,000)

healthcare

Solid Waste

 13,586,000

 13,558,000

 (28,000)

healthcare

Storm Water

 3,220,000

 3,215,000

 (5,000)

healthcare

Golf Course

 996,000

 993,000

 (3,000)

healthcare

City Parks Memorial

 65,000

 66,000

 1,000

deplete fund balance

Farmland Remediation

 1,507,000

 1,506,000

 (1,000)

healthcare

Outside Agency Grants

 4,121,000

 4,119,000

 (2,000)

healthcare

TOTAL ADJUSTMENTS

 

 

(143,000)

 

 

Most of the adjustments are attributed to aligning personnel benefits in all budgeted funds to those budgeted in the General Operating Fund.   Additionally, personnel services within each department budget in the General Operating Fund has been adjusted slightly for healthcare.  An adjustment that was made to the June 13 budget related to healthcare was accounted for in the general overhead division.  It has now been allocated appropriately to each department.

 

The City Parks Memorial fund expenditure budget was increased by $1,000 in order to allow the department to spend down the entire fund balance and close the fund at the end of 2018.   

 

State Budget Forms

The City is required to use the State Budget Forms when submitting the budget to the County and State. These forms are used by all municipalities across the state and are used to prepare the notice of public hearing.

 

There are two significant difference between the State Budget Forms and the City Manager’s Recommended Budget. First, the fund balance is presented differently. Second, there are some funds that were presented in the recommended budget that are not included on the state forms.

 

The attached table shows a reconciliation between the City Manager’s Recommended Budget and the State Budget Forms. The $255,290,000 shown as the total expenditures on the State Budget Forms is derived by subtracting the non-budgeted funds from the updated City Manager’s recommended budget and adding the estimated ending fund balance shown on the State Budget Forms.  Additionally, the State Budget Forms are rounded to the nearest thousand.   

 

The total 2018 budget of $255,290,000 as outlined in the state budget forms, is the amount that will be used on the notice of public hearing that is published.

Strategic Plan Critical Success Factor

Effective Governance/Professional Administration

Innovative Infrastructure and Asset Management

Core Services

Sound Fiscal Stewardship

Fiscal Impact (Amount/Source):

The total 2018 budget is $255,290,000 as outlined in the state budget forms.

Attachments:

Notice of Public Hearing

Reconciliation to the State Budget Forms

Expenditures of All Funds by Department

 

 

 

 

Reviewed By:

(for CMO use only)

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