Memorandum
City of Lawrence
City Manager’s Office
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Date: |
July 15, 2013 |
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To: |
David Corliss, City Manager |
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From: |
Casey Toomay, Budget Manager |
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CC: |
Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager / City Clerk |
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RE: |
City Commission Items Related to Adoption of the 2014 Budget |
Please place the following items on the City Commission agenda for consideration at their July 23, 2013 meeting:
Public Hearing for Proposed 2014 Budget
Per action taken at the July 9, 2013 City Commission meeting, notice of a public hearing to be conducted on July 23, 2013 was published on July 13, 2012 in the Lawrence Journal World. The purpose of the hearing is to answer and hear questions of taxpayers relating to the City Manager’s recommended budget. The publication of the notice of budget hearing and the accompanying budget summary establish the maximum limits of the 2014 budget. Therefore, the City Commission may make changes, as appropriate, subsequent to the public hearing that would involve lowering, but not raising the expenditure levels of the published budget summary.
Per direction of the City Commission at the City Commission on July 9, 2013, the following adjustments have been made to the City Manager’s recommended Operating and Capital Improvement Budget.
General Operating Fund. The City Commission directed staff to increase the proposed mill levy for the general fund by an additional 0.052 mill. Including the City Manager’s original recommendation of an increase of 0.409 mill, the total increase in the general operating fund mill levy for 2014 is 0.461 mill. The increase will be used as follows:
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Description |
Cost |
Mill Levy Required |
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Four additional dispatchers for Emergency Communications |
$130,000 |
0.156 |
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Additional growth in Police overtime costs |
$30,000 |
0.036 |
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Additional public works equipment/improvements (in 2014 this will include salt dome repair, trucks, snow removal equipment) |
$80,000 |
0.096 |
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City facility improvements (in 2014 this will include the City Phone system) |
$80,000 |
0.096 |
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Lawrence Arts Center funding increase |
$20,000 |
0.024 |
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Health Department increase for STD and HIV testing |
$14,000 |
0.017 |
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Additional funding increase for Lawrence Humane Society |
$30,000 |
0.036 |
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General Operating Fund Subtotal |
$384,000 |
0.461 |
Library Fund. The Lawrence Public Library requested an increase of $150,000, or 4.6%, for 2014. In order to preserve fund balance and not increase the mill levy, the City Manager’s recommended budget included an increase of 3.1%, or $100,000. At their meeting on July 9, the City Commission directed staff to increase funding to the library by an additional $40,000. In order to generate the additional revenue, the mill levy will be increased 0.048 mill for 2014.
The remainder of the 2014 budget will be as previously posted. The total increase in the City mill levy for the 2014 budget is 0.509 mill.
While the adopted budget for the general fund assumes expenditures will exceed revenues, the budget includes a transfer to the Capital Improvement Reserve Fund in the amount of $5,909,696 that will only be made if revenues exceed expenditures in 2014. The City Manager believes that staff will be able to manage expenditures and that it will not be necessary to spend down fund balance in the general fund in 2014.
Commission Action: Conduct public hearing for 2014 proposed budget. Adopt on first reading, Ordinance No. 8886, approving and appropriating the 2014 City of Lawrence Operating and Capital Improvement Budget, if appropriate.
Property Tax Ordinance
Following the provisions of KSA 79-2925b, staff recommends the adoption of an ordinance noting that in order to maintain essential city services, it will be necessary to utilize property tax revenues in an amount which exceeds the revenues budgeted in the previous year.
Commission Action: Adopt on first reading, Ordinance No. 8887, attesting to the increase in property taxes levied for 2014, if appropriate.
Enterprise Fund Rate Ordinances
The 2014 Budget assumes increases in the rates customers pay for city water, sewer, and solid waste services. Separately ordinances for each must be adopted.
Solid Waste Service Rates Ordinance. An ordinance establishing the new fees for city-provided curbside recycling was adopted previously by the City Commission. No additional changes to monthly rates are recommended for 2014.
Water Service and Sanitary Sewer Service Rates Ordinance. The attached memo provides an overview of the water and wastewater rates recommended for 2014.
Commission Action: Adopt on first reading, Ordinance No. 8883, establishing water and sanitary sewer service rates, effective November 15, 2013, if appropriate. Approve wholesale water rates, effective November 15, 2013, if appropriate.
System Development Charges Ordinance. An ordinance establishing system development charges for the next five years was adopted previously by the City Commission.
Budget Calendar
The remaining dates related to adoption of the 2014 budget are shown below.
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Tuesday, August 13 |
Budget ordinance second reading |
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Wednesday, August 14 |
Budget ordinance sent to LJW for publication |
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Sunday, August 25 |
Deadline to file budget with County Clerk |
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Thursday, December 1 |
County submits budget to State of Kansas |