2012 Budget Overview

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2012 Budget Overview

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State Population Growth – 2000 to 2010

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RCPD (21¢)

$11,479,371

Library (4¢)

$2,222,386

Riley County Health De-partment

(1¢) $266,957

General Fund(2¢)

$1,174,944

Employee Benefit

Fund(1¢)

$628,250

Fire Equipment

Reserve(<1¢)

$50,000

KP&F(<1¢)

$75,000

Bond & In-terest Fund

(4¢) $2,399,386

Property Taxes for Outside Services

26¢ of Every Tax Dollar

Property Taxes for City Services

8¢ of Every Tax Dollar

State of

Kansas 1¢

City of Manhattan34¢

Riley County

26¢USD 383

39¢

2011 Distribution of Every Property Tax Dollar

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Local Average Wage 24,213 25,387 26,635 27,685 29,328 30,893 33,268 35,468 37.380 38,000 39,000

Total City Property Taxes 8,343,034 9,328,790 9,657,898 10,725,541 11,799,489 12,264,300 11,648,970 12,157,634 13,110,873 14,734,675 16,102,722

City Services Taxes 3,728,852 3,196,765 1,834,628 2,446,774 3,484,557 3,645,600 3,334,751 1,965,558 2,107,710 2,065,569 2,598,180

Outside Services Taxes 4,614,182 6,132,025 7,823,270 8,278,767 8,314,932 8,618,700 8,314,219 10,192,076 11,003,163 12,669,106 13,504,542

Local Average Wage 61.1%

Total City Property Taxes 57.1%

Outside Services Property Taxes 138.5%

City Services Property Taxes (43.5%)

Comparative Data – 2000 to 2010

CPI Inflation = 31%

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2004 2005 2006 2007 2008 2009 2010$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

General Fund Budget 15,969,123 16,690,428 19,194,738 21,507,122 20,801,075 22,130,617 23,122,213

General Fund Expenditures 15,146,723 16,096,971 18,656,930 20,783,194 20,644,546 20,941,307 20,955,392

Outside Services 7,743,348 7,745,352 8,515,032 9,311,532 10,102,584 11,271,456 11,847,984

General Fund – Comparison of Budgets to Expenditures

General Fund ExpendituresLess than a 1% increase

More than a 27% increaseOutside Services Allocations

General Fund Budget

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2004 2005 2006 2007 2008 2009 2010 $(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000 General Fund – Additional Revenue Generated & Expenditure Savings

Expenditure Savings

Excess Revenue Generated

Excess Revenue to Budget 1,686,517 1,990,504 2,206,943 2,219,490 2,453,000 414,838 352,055

Total Expenditure Savings 322,399 (6,554) 57,901 (326,073) (343,471) 889,390 1,153,849

Savings as % of Budget 2.1% 0.0% 0.3% -1.7% -1.7% 4.1% 5.2%

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

20

40

60

80

100

120

140

CityLevyOutside

City Services

City Services

State of Kansas

Riley County

USD 383

2010 Mill Levy Rates

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State of Kansas (about 74¢)

Riley County and Pottawatomie County

(about 12¢)

Pools and Sunset Zoo Sales Tax(about 3¢)

City of Manhattan

(about 12¢)

$4,641,00071%

$980,795

11%

$420,341

4%

$26,155> 1%

$1,261,023 14%

Bond & Interest Fund

Park Development

Fund

KP&F Fund

Employee Benefit Fund

2011 Distribution of Every Sales Tax Dollar

GeneralFund

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

-15%

-10%

-5%

0%

5%

10%

15%

20%

Mill Levy Rate

Assessed Valuation

Sales Taxes

Percentage Change of Mill Levy Rates, Valuation and Sales Taxes

44.15 42.46 44.39 43.54 40.83 36.24 33.09 31.68 34.27 37.29 41.92

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$34,340,246 , 16%

$11,858,962 , 5%

$7,480,000 , 3%

$63,264,754 , 29%

$3,591,038 , 2%

$81,430,000 , 37%

$729,084 , Less than 1%

$16,989,852 , 8%

General Obligation Bonds (Property Taxes)

G.O. Temporary Notes(Property Taxes)

Quality of Life Bonds (Sales Taxes)

Special Assessment Bonds(Benefit District Payments)

Special Assessment Temporary Notes(Benefit District Payments)

Special Obligation Revenue Bonds - STAR, TIF, TDD(State and Local Sales Taxes)

Lease Purchases(Transfers from Special Revenue Funds)

State of Kansas Loans - KDHE & KDOT(Water, Wastewater and Special Rev-enue Fund)

Breakdown of Total City Debt

$ 219,683,936

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2003 2004 2005 2006 2007 2008 2009 20100

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Property Tax Supported (Issued) 2,645,000 0 3,954,207 620,000 0 2,835,392 6,260,560 4,925,000

Property Tax Supported (Retired) 2,283,013 2,148,109 6,787,116 2,134,910 1,802,377 2,119,339 3,568,908 2,329,215

Total Issued $ 21,240,159Total Retired $ 23,172,987

General Obligation Bonds – Issued to Retired

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2003 2004 2005 2006 2007 2008 2009 20100

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Non-Property Tax Supported (Issued) 9,865,000 2,080,000 500,793 8,380,000 15,710,000 16,909,608 21,824,440 17,560,000

Non-Property Tax Supported (Retired) 5,671,987 2,966,891 5,117,884 3,245,090 3,372,623 5,795,661 14,416,092 5,050,785

Non-Property Tax Bonds – Issued to Retired

Total Issued $ 92,829,841Total Retired $ 45,637,013

Questions to this point?

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Budget Process

Revenue Forecasting

Capital Improvement Prioritization

Operating Budget Formulation

Management Review

City Commission Review and Adoption

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Revenues vs. Expenses

Revenues Expenses

Property Taxes???

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Revenues vs. Expenses

Revenues Expenses

Operations

Maintenance

Capital Improvement Projects

Federal Mandates

Cash Balances

Utility Fees

Sales Taxes

Property Taxes

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Fund Accounting

General Fund•Finances the core operations of the City

(Public Works, Park & Recreation, Fire, Community Development, Legal, and Administrative/Support Services)

Special Revenue Funds• Accounts for specific revenue sources

that can only be spent for certain purposes

Bond & Interest• Accounts for the annual principal and

interest payments on debt issuances approved by the City Commission

Enterprise Funds•Finances the business-like activities of

the City intended to be covered by user charges (Water, Wastewater, and Stormwater Utilities)

City Budget

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2012 City Budget

Fund 2011 Budget 2012 Budget General Fund 23,253,312 24,984,294

Special Revenue Funds * 41,961,201 40,599,272

Bond & Interest Fund 17,655,525 20,391,992

Enterprise Funds 22,175,500 29,367,130

Total $105,045,538 $115,342,688

*The Community Development Block Grant Fund was a budgeted fund in 2011 but has been made a non-budgeted fund in 2012 consistent with other City grant funds.

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2012 Property Tax ProjectionsProjected

Property Taxes for Outside Agencies Levies ChangeRCPD 27.964 1.665

Library 4.331 0.156Library EBF 0.911 (0.005)

Riley County Health Department 0.647 0.03533.853 1.851

Property Taxes for City ServicesGeneral Fund 3.539 0.847

Employee Benefit Fund 1.566 0.127Fire Equipment Reserve 0.113 (0.002)

General Improvement 0.000 0.000Park Development 0.000 0.000

KP&F 0.169 (0.003)Industrial Promotion 0.000 0.000

Bond & Interest Fund 5.982 0.48511.369 1.454

Possible 2012 Mill levy 45.222Estimated increase over 2011 Mill Levy 3.305

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2012 Property Tax ProjectionsProjected

Levies Change

Property Taxes for City ServicesGeneral Fund 3.539 0.847

Employee Benefit Fund 1.566 0.127Fire Equipment Reserve 0.113 (0.002)

General Improvement 0.000 0.000Park Development 0.000 0.000

KP&F 0.169 (0.003)Industrial Promotion 0.000 0.000

Bond & Interest Fund 5.982 0.48511.369 1.454

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RCPD (21¢)

$12,028,504

Library (4¢)

$2,322,750

Riley County Health De-partment

(1¢) $286,509

General Fund(3¢)

$1,567,875

Employee Benefit

Fund(1¢)

$693,785

Fire Equipment

Reserve(<1¢)

$50,000

KP&F(<1¢)

$75,000

Bond & In-terest Fund

(4¢) $2,650,695

Property Taxes for Outside Services

25¢ of Every Tax Dollar

Property Taxes for City Services

9¢ of Every Tax Dollar

State of Kansas

1¢City of Manhattan34¢

Riley County

26¢USD 383

39¢

2012 Estimated Distribution of Every Property Tax Dollar

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General Fund(3¢)

$1,567,875

Employee Benefit

Fund(1¢)

$693,785

Fire Equipment

Reserve(<1¢)

$50,000

KP&F(<1¢)

$75,000

Bond & In-terest Fund

(4¢) $2,650,695

Property Taxes for City Services

9¢ of Every Tax Dollar

City of Manhattan34¢

2012 Estimated Distribution of Every Property Tax Dollar

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General Fund Revenues2011 2012 Increase/

Budget Budget (Decrease)Revenues

Beginning Fund Balance 2,085,000 2,300,000 215,000 Taxes & Assessments 1,324,399 1,708,050 383,651 Sales and Compensating Use Taxes 7,750,040 7,752,040 2,000

Franchise Fees 2,733,368 2,992,632 259,264

Special Liquor Tax 400,000 400,000 -

Business Licenses & Permits 119,500 105,000 (14,500)

Non-Business Licenses 638,206 733,785 95,579 Intergovernmental 76,000 76,000 - Services & Sales 1,423,597 2,175,100 751,503

Municipal Court Revenues 1,563,400 1,464,018 (99,382)

Use of Money and Property 501,900 427,900 (74,000)

Contributions and Other Revenue 174,800 195,021 20,221

Transfers 4,463,102 4,654,748 191,646

Total Revenues: $ 23,253,312 $ 24,984,294 $ 1,730,982

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General Fund Expenditures2011 2012 Increase/

Budget Budget (Decrease)

ExpendituresPersonnel Services 16,012,905 17,110,670 1,097,765

Contractual Services 3,313,382 3,633,291 319,909

Commodities 1,681,450 1,840,330 158,880

Capital Outlay (Inventory, Equipment, & CIP) 338,425 443,042 104,617

Grants & Other 1,485,710 1,463,082 (22,628)

Transfers 243,605 223,324 (20,281)

Debt Service (Lease Purchases) 177,835 270,555 92,720

Total Expenditures: $ 23,253,312 $ 24,984,294 $ 1,730,982

The City anticipates that about $365,000 will be required to fund staffing and operational expenses associated with one-half year of personnel for Fire Station No. 5 (12 new personnel staffing the station 24/7). Current estimates suggest that about $393,000 in additional property taxes (a little less than one mill) will be necessary to fund both staffing and operations for this new fire station for half of 2012.

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Employee Benefit Fund2011 2012 Increase/

RevenuesBudget Budget (Decrease)

Beginning Fund Balance - - - Ad Valorem 628,250 693,785 65,535 Delinquent Ad Valorem 1,000 2,000 1,000 Motor Vehicle 27,750 48,215 20,465 Sales Tax Transfer 1,050,000 1,050,000 -

Total Revenue 1,707,000 $ 1,794,000 $ 87,000

Expenditures

Cafeteria - Benefits Admin Fees 7,000 7,000 - FICA 666,000 696,000 30,000 Medicare 198,000 213,000 15,000 KPERS 707,000 841,000 134,000 Unemployment 14,000 37,000 23,000 Workers Comp 115,000 - (115,000)

Total Expense 1,707,000 $ 1,794,000 $ 87,000

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Bond & Interest RevenueBudget Budget Increase/

REVENUES 2011 2012 (Decrease)

Beginning Balance 1,469,022 1,540,087 71,065

Ad Valorem Taxes 2,399,386 2,650,417 251,032

Special Assessments 6,123,164 6,019,807 (103,357)

Transfers from Other Funds 2,050,650 2,209,196 158,546

Sales Tax Transfers 1,350,000 1,100,000 (250,000)

Special Election Sales Tax 1,066,700 1,401,093 334,393

STAR Bond Revenue 2,017,163 3,727,163 1,710,000

TIF A Revenue 979,554 1,439,554 460,000

Motor Vehicle Taxes 78,917 184,144 105,227

Other Revenues 120,969 120,531 (438)

TOTAL REVENUES

$ 17,655,524 $ 20,391,992 $ 2,736,468

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Bond & Interest ExpensesBudget Budget Increase/

EXPENSES 2011 2012 (Decrease)

Past Debt (Financed by Various Sources) 9,486,637 8,791,829 (694,808)

Current Debt (Financed by Other Sources) 1,573,283 1,438,625 (134,658)

Current Debt (Financed by Property Taxes) 2,028,895 1,922,849 (106,046)

Current Projects Temporarily Financed (by Other Sources) 432,903 1,051,433 618,529

Current Projects Temporarily Financed (by Property Taxes) 23,100 880,895 857,795

Special Obligation Bonds 2,996,717 5,166,717 2,170,000

Discretionary Projects (Financed by Property Taxes) 113,990 139,644 25,654

Cash Reserves 1,000,000 1,000,000 -

TOTAL EXPENSES $ 17,655,524 $ 20,391,992 $ 2,736,468

*Increase in Bond & Interest Property Taxes for 2012 = $251,031

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• Fire Stations #3 and #5• Consolidated Dispatch• Marlatt Avenue and US-24

Intersection Improvements

Results of 2012 BudgetCreating Safe Communities

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• McCall Road Street Improvements• 4th & Bluemont Roundabout• NBAF Water Line• Water & Wastewater Treatment

Plant Expansions• Airport Terminal Improvements and

Possible Expansion

Results of 2012 BudgetIncurring Growth and Preparing for More

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• Smith and Manfax Wastewater Improvements

• South End Stormwater Project #15• FCIP Improvements• Enhanced Maintenance and Traffic

Control

Results of 2012 BudgetMaintaining Infrastructure plus Increased Sustainability

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Infrastructure Added Since 2005 2005 2006 2007 2008 2009 2010 Totals

Sanitary Sewer (LF) 20,302 54,589 42,774 11,601 9,698 13,038 152,002

Water Main (LF) 28,001 47,962 38,284 21,787 15,835 16,013 167,882

Street Concrete (SY) 3,816 31,224 24,106 24,075 26,733 34,640 144,593

Street Asphalt (SY) 48,403 107,270 50,130 38,545 36 627 245,010

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• Discovery Center• Conference Center/Parking Garage• Pool Renovations• Sunset Zoo Education Building• South End Redevelopment Public

Park

Results of 2012 BudgetProviding a High Quality of Life

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• Replacement Facility for Damaged Traffic Building

• Legal Department Transition• Upgrades to file servers, phone

systems, and radios/pagers

Results of 2012 BudgetManaging Public Resources

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Federal and State Mandates• Levee Certification• Wastewater Treatment Plant Expansion• Increased KPERS Rates• Utility and Infrastructure Best

Management Practices• New Pagers and Radios

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Community Enhancements with Leveraged Grant Funds

• US-24 & McCall Rd. Intersection Improvements = $1,000,000

• Bluemont Ave. Road Improvements from Manhattan Ave. to 11th St. = $750,000

• WWTP Access Road Realignment = $820,000

• Runway 13-31 and 13-21 Expansions = $7,803,703

• NAVAID Equipment Relocation = $1,796,758

Since 2005, the City has leveraged more than $10 million dollars in grants for infrastructure improvements and more than $14 million for Airport improvements due to growth and safety needs of the community. Following are some of the major grant awards received by the City:

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Reminder…

June 14th Second Budget Work Session on the 2012 City Budget and a

Discussion of Utility Rate Increases