CITY COMMISSION AGENDA ITEM

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Department:

City Manager’s Office

Commission Meeting Date: August 1, 2017

Staff Contact:

Casey Toomay, Assistant City Manager

Recommendations/Options/Action Requested:

Conduct public hearing for the 2018 budget and consider adopting on first reading, Ordinance No. 9387 approving and appropriating the 2018 City of Lawrence Operating and 2018-2022 Capital Improvement Budget, if appropriate.

Executive Summary:

Background

Pursuant to action taken by the City Commission at its July 11, 2017 meeting, notice of public hearing to be conducted on August 1, 2017 was published on July 14, 2017 in the Lawrence Journal World. The purpose of the public hearing is to receive and respond to questions of citizens related to the 2018 proposed budget.

The notice of public hearing and budget summary established the maximum expenditure limits of the 2018 budget. After the public hearing, the City Commission can lower, but cannot raise, the maximum expenditure level.

City Manager’s Recommended 2018 Budget

As presented on June 13, 2017, the City Manager’s Recommended budget included operating and capital expenditures totaling $196,847,000. This amount includes an increase of 1.25 mills for the Debt Service Fund and brings the total City tax levy to $32,783,573, which is estimated to be 33.268 mills.

In addition to operating and capital expenditures, fund balance of $83,295,000 was also budgeted to meet statutory requirements. It should be noted that much of the budgeted fund balance is restricted for specific purposes. The City’s total budget includes 40 distinct funds; however, only 30 funds are included in the certified budget as required by State Statute. The remaining 10 funds are reported in the budget document for transparency.

The reconciliation chart outlines which funds are included in the certified budget and which funds are only reported in the budget document. This chart also outlines the fund balance for each fund.

The Recommended Budget was balanced through growth in revenue, reductions in expenditures, and deferral of operational and capital requests. It should be noted that the 2018 Recommended Budget includes increases in utility fees (water, sewer, solid waste, stormwater). These fees have yet to be approved by the City Commission. If these rates are not approved at the recommended level, there will be an impact to how services are currently being provided. This may include a reduction in the level of service, the elimination of current programs, or other necessitated service impacts.

Additionally, the current CIP assumes the recommended mill levy increase of 1.25 mills beginning in 2018. If the mill levy increase is not approved, or approved at a rate below 1.25 mills, some CIP projects will have to be removed or pushed out to future years. Additional information on the CIP is provided in the attached memorandum by the Finance Director.

Budget Calendar

Tuesday, August 1	Public Hearing Budget Ordinance Adopted on First Reading
Tuesday, August 8	Budget Ordinance Adopted on Second Reading
Friday, August 11	Budget Ordinance Published in the Lawrence Journal World
Tuesday, August 25	Statutory Deadline to File Budget with County Clerk