Memorandum
City of Lawrence
City Manager’s Office
|
TO: |
David L. Corliss, City Manager |
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CC: |
Tarik Khatib, Chief of Police Diane Stoddard, Assistant City Manager Cynthia Wagner, Assistant City Manager |
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FROM: |
Casey Toomay, Budget Manager |
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DATE: |
06/14/14 |
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RE: |
Police Facility Funding Scenarios |
Background
The City Commission held a study session in May 2012 to review a facility needs assessment for the Police Department. The City Commission directed staff to develop a multi-year plan to address the staffing, equipment, and facility needs presented by the Police Department. Pursuant to that request, staff provided a four year plan that included 46 new positions, $4.6 million of additional equipment and capital improvement projects, and the $30 million facility and created a model to project the cost of those needs.
In addition, the model identified property tax and sales tax as potential funding sources and determined the mill levy increases and sales tax rates that would be required to fund the expenditures over a multi-year period.
Pursuant to a request from Commissioner Farmer, that model has been updated to reflect changes in assessed valuation and sales tax revenues since 2012 and several funding scenarios have been developed. They all assume debt issuance of $30 million but vary in maximum maturities. Other variables include the sales tax rate, the mill levy rate, and the number of years the sales tax would be in place before sun setting.
The table below shows summarizes the scenarios that fund the cost of constructing a facility and some operation and maintenance costs only.
|
Scenario |
Sales Tax Rate |
Sunset |
Property Tax Mill Levy Rate |
Term of Debt |
|
A |
None |
N/A |
2.8 mills |
20 years |
|
B |
0.2% |
16 yrs |
None |
10 years |
|
C |
0.25% |
5 yrs |
1.8 mills |
10 years |
|
D |
0.25% |
3 yrs |
2.2 mills |
20 years |
|
E |
0.2% |
10 yrs |
1.1 mills |
20 years |
|
F |
0.15% |
5 yrs |
2.2 mills |
20 years |
|
G |
1% |
2 yrs |
1.3 mills |
20 years |
|
H |
1% |
1 yrs |
2.05 mills |
20 years |
|
I |
0.3% |
10 yrs |
None |
10 years |
|
J |
0.25% |
10 yrs |
0.25 mills |
10 years |
In addition one scenario, summarized below, was prepared that would also fund additional staffing and equipment for the department over the next twenty years.
|
Scenario |
Sales Tax Rate |
Sunset |
Property Tax Mill Levy Rate |
Term of Debt |
|
K |
0.2% |
20 yrs |
3.7 mills |
20 years |
The 20 year projections for each scenario are attached.