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2013 City Budget
August 14 – Public Hearing
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2013 Budget Overview
•$416,171 increase for FT/PT employee salaries (1.7% COLA; 2.0% merit; plus negotiated union wages)
•Proposed 4% rate increase for the Stormwater Fund requires a Charter Ordinance
•Rate changes for the Water and Wastewater Funds will be recommended in November after reviewing 3rd quarter revenues
Items to be approved/discussed before approving the 2013 City Budget
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2013 Salary Overview
1.7% cost-of-living adjustment
Increase steps from 3.5% to 4.0% subject to satisfactory performance
Union members approved the proposed wages in June
Fire Union employees
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2013 Salary Overview
1.7% cost-of-living adjustment
Variable merit rating based on two levels from 1.2% to 2.2%.
This is the same salary adjustment provided in 2012.
Full-time, part-time and unclassified City employees
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2013 Stormwater Overview
Residential increase of 4% -- from $4.13 to $4.29 monthly
Commercial increase of 4% based on square footage of hard surface area
Requires approval of Charter Ordinance and 90-day waiting period
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2013 Budget Overview
•$611,050 increase in debt payments for the new fire stations•$288,726 increase in salaries, benefits, and operations for the new fire
stations•Sunset of the half-cent county sales tax used to support economic development initiatives•30% reduction in capital improvements compared to the 2012 CIP•Revenue increases in Parks & Recreation associated with fee increases that will be proposed in September following review by the Park & Recreation Advisory Board•Proposed rate increases for all of the City’s enterprise funds
2013 Budget Overview
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2013 Budget Overview (continued)
•Reduction of $419,790 in property taxes during the 4th work session including: New position requests with a property tax impact were eliminated including:
airport administrative assistant, airport maintenance technician, part-time zoo keeper, and a part-time recreation customer service representative
$68,000 reduction in capital improvements 5% reduction in Social Services, Flint Hills aTa, Manhattan Arts Center,
Municipal Band, & Wolf House $18,000 reduction in Arts in the Park programming Delay of computer equipment upgrades Restore expenditures to Economic Development fund for the K-18 payment
of $75,000 and the Downtown Manhattan Inc. contract of $45,000 Transfer of Crime Stoppers program to the 2013 RCPD budget 1% additional increase in sales tax estimates for a total increase of 2.5% over
2012 estimates 3.4% increase in utility administration payment from $1,183,882 to
$1,223,882
2013 Budget Overview
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2013 Budget Overview
2013 Published City Budget of $120,049,142(less the CIP Reserve Fund)
Budget increase of $8.6 million
Increase in property taxes of $1,178,879
2012 Valuation of 463,125,526
New improvement taxes of $602,553
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2013 City Budget of $120,049,142
Budget increase of $8.6 million $4.2 million from sales tax reserves within the Bond & Interest Fund $2.4 million from Enterprise Funds $1.6 million from General Fund $0.4 million from Special Revenue Funds
2013 Budget Overview
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2013 Budget Overview
2013 City Budget of $120,049,142
Budget reductions of $1,762,322 $892,293 cut by City Manager before first budget work session $870,209 cut by the City Commission during budget work sessions
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2013 City Budget of $120,049,142
Budget increase of $8.6 million
Increase in property taxes of $1,178,879 $979,904 to RCPD $122,544 to the Library $76,431 to Bond & Interest
2013 Budget Overview
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2013 City Budget of $120,049,142
Budget increase of $8.6 million
Increase in property taxes of $1,178,879
New improvement taxes of $602,553
2013 Budget Overview
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ProposedProperty
Tax Increase
Proportion of New Improvement
TaxesActualResult
City ServicesThose services that are under the control of the
City Manager$76,431 - $135,766 $(59,335)
Outside ServicesThose services that are not under the control of
the City Manager$1,102,448 - $456,338 $646,110
Totals: $1,178,879 - $592,104 $586,775
2013 Budget Overview
(minus)
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2013 Budget Overview
Valuation Taxes
Number of Homes with Increases: 20 56
Number of Homes with Decreases: 40 17
Numberof Homes Remaining Flat: 13 0
Total Number of Homes Sampled: 73 73
Average Annual Change (1703) 17
Based on Total Proposed City Mill Levy (43.425)
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2013 Budget Overview
Valuation Taxes
Number of Homes with Increases: 20 13
Number of Homes with Decreases: 40 57
Number of Homes Remaining Flat: 13 3
Total Number of Homes Sampled: 73 73
Average Annual Change (1,703) (4)
Lowest: (47,100) (59)
Highest: 80,100 78
Based on Proposed Mill Levy – City Services Only (9.537)
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2013 Budget Overview
17
2008 2009 2010 2011 2012 2013 $-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000 $525,950
$70,933
2013 Budget Overview
General Fund Capital Improvement Spending
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2013 Budget Overview
Downgrade to Aa3 Additional Interest Cost
15 Basis Points 93,659
25 Basis Points 155,495
Downgrade to A1
40 Basis Points 249,404
60 Basis Points 375,526
Bond Issue for New Fire Stations – $6,340,000 Bond Rating Aa2 by Moody’s
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Budget Amendment
2012 Kansas Police & Fire Budget (KP&F)
$628,000Due to statutory changes approved by the Kansas legislature in 2011, the rates applied to the City’s retirement contributions for this fund have increased for
calendar year 2012.
Request amending 2012 budget to: $710,000
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Proposed Actions
1. Conduct a public hearing.2. Approve first reading of the salary ordinance; and adopt
negotiated wage changes for the firefighters union. 3. Approve first reading of a charter ordinance amending
stormwater rates.4. Approve first reading of the 2013 budget ordinance; and
approve first reading of an ordinance amending the 2012 KP&F budget.
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Questions?
August 21stSecond Reading of 2013
Budget Ordinances