Memorandum

City of Lawrence

Finance Department

TO:	Mike Wildgen, City Manager
FROM:	Ed Mullins, Finance Director
CC:	Dave Corliss, Assistant City Manager
Date:	November 22, 2005
RE:	Storm Water Budget Amendment

BACKGROUND

The 2005 Storm Water budget was adopted by the City Commission in August 2004 with an expenditure level of $3,805,379.  Subsequently, the City issued over $5.2 million in temporary notes for storm water projects in 2004.  Because the notes paid for assets of the storm water utility, the proceeds of the notes and subsequent principal and interest payments were recorded in the storm water fund in 2005 in accordance with generally accepted accounting principles.

DISCUSSION

In order to provide the additional amounts in the 2005 storm water budget to pay for the debt service, the storm water budget will need to be increased by $5.2 million to $9,005,379.  Kansas budget law allows the City Commission to amend the adopted budget provided sufficient non-property tax revenue funds the additional expenditures.  The proceeds from the temporary notes provide the $5.2 million in additional revenue to fund the expenditure increase.  The amendment needs to be approved by ordinance after a public hearing.  The notice of public hearing has been published with the hearing scheduled for December 13, 2005.

RECOMMENDED ACTION

It is recommended that the City Commission hold a public hearing on December 13, 2005 for the purpose of increasing the 2005 storm water budget by $5.2 million.  Ordinance No. 7950, amending Ordinance 7816 is attached.