CITY MANAGER’S REPORT

Week ending March 17, 2018

VanTrust Project in Lawrence VenturePark Commencing – Added 03/19/18

The first phase of the VanTrust project is commencing with the real estate closing of the first lot in Lawrence VenturePark.  VanTrust is planning on building a 150,000 square foot spec industrial building on the site with future phases planned on the adjacent lot to the east and the cluster of lots to the west near the fairgrounds.  Grading and other site work will begin very soon and VanTrust is anticipating a completion date around October 2018.  This event marks a significant point in the work to bring the former Farmland property back to productive use and an important gateway to Lawrence. 

Update Statement of Substantial Interests Form

Every public official should verify there is a current statement of substantial interest on file in the office where candidacy was declared.

If any change occurred in the substantial interests of a commissioner in the preceding calendar year, a new Statement of Substantial Interests Form must be filed between April 15^th and April 30^th with the Douglas County Clerk’s Office (K.S.A. 75-4302a).

More information is available by contacting the Kansas Governmental Ethics Commission at (785) 296-4219 or visiting www.kansas.gov/ethics, where you can find links to the blank SSI form, instructions and applicable Kansas statutes.

February Utility Billing Report

Attached is the February Utility Billing Report.

General Fund 2017 Activity (updated 03/20/18)

City staff prepared the preliminary general fund 2017 report. These are unaudited numbers. The general fund revenues (revised 03/20/18) were two percent (2%) one percent (1%) over revised budget and the general fund expenditures (revised 03/20/18) were five percent (5%) under revised budget. This resulted in a net increase to our unaudited fund balance of $3,416,883. Staff is working towards the May 10, 2018 CIP presentation that will identify staff recommendations for use of general fund balance transfers to reserve funds.

Of note:

• Property tax, sales tax and franchise fees ended as expected and were only off $262,000 (0.4% within budget)
• The unbilled county charges and riverfront charges accounted for the largest revenue variance.
• Overall we were ninety-five percent (95%) of budgeted expenditures.
• Personal services were ninety-six percent (96%) of budget with most of the unspent being for budgeted unfilled positions. These were mostly seen in the police department plus the new hires that were hired came in at lower salaries than those they were replacing.
• Contractual services were ninety-eight percent (98%) ninety-two percent (92%). This was in part due to less legal expenditures and equipment repairs were less than anticipated.
• Commodities were ninety-eight percent (98%) ninety-percent (90%) of budget mainly due to not having major snow events in addition to fuel and utility charges did not increase as were expected.
• Capital outlay was forty-six percent (46%) of revised budget due to an accounting change for capital expenditures.  For 2017, capital outlay expenditures were only expenditures greater than $20,000 and the remaining expenditures were classified under commodities.

Advisory Board Membership Voluntary Demographic Survey Distributed

The Advisory Board Membership Voluntary Demographic Survey was sent to staff liaisons for distribution to City Advisory Board members on Monday, March 13.   The survey will be open until April 13.  The purpose of the survey is to help us gain a snapshot of the current demographic profile of the City’s advisory boards.  Results of the survey will be shared with the Commission.

Benefit/Cost Model Update

The City uses a custom benefit/cost model to evaluate fiscal impacts on local taxing jurisdictions when considering economic development assistance. Originally developed by the University of Kansas, the model was later revised by City staff in 2008-09. At the time of development, the model focused primarily on property tax abatement projects. Although community variables are updated in the model each year by City Staff (mill levies, demographics, census data, budgets, etc.), model functionality has now become outdated due to legislative changes, differences in commercial tax appraisal methodology and the need to use the model for economic development tools that are not necessarily focused on property tax abatements.

Staff began researching revision options in 2017 and, with the exception of the Total Impact Model by Impact DataSource (IDS), all models fell short of even current City model standards.  IDS specializes in developing benefit/cost models for public sector organizations. The company has six economists on board, has analyzed thousands of economic development projects, and developed over 75 customized economic and fiscal impact models for cities, counties, states, and economic development organizations throughout the country.  Staff feels the Total Impact model will provide a cost-efficient solution to updating model functionality, accommodating annual customization, streamlining operations, and incorporating industry best practices into the City’s benefit/cost analytics.  The annual price for on-going maintenance, customization, consultation, and usage is approximately $6,500.  Staff has had many conversations with the head economist at IDS regarding the City’s model needs and will continue to work closely with the company as the first draft is developed.

February Monthly Permit Reports

The Building Safety Division issued 179 building permits in February, with total construction for the month valued at $9,116,732.  Total permit fees assessed for the month were $65,906, and total review fees assessed were $4,877.  Permits were issued for fourteen (14) new residential projects, including thirteen (13) single-family dwellings and one (1) duplex.   Staff Memo Monthly Permit Report Year-to-Date Summary

Rental Licensing and Inspection Program 2017 Annual Report

Attached is the 2017 Rental Licensing and Inspection Program Annual Report.

Informational Briefing on Valuation of Large Commercial Properties

On Tuesday, March 6, the Kansas Senate Committee on Assessment and Taxation held an informational briefing on the valuation of large commercial properties.  This issue pertains to recent appeals of property tax valuations by big box retail stores in Kansas.  Recent appeals by these stores from Sedgwick County, Riley County and Johnson County have caused concern among many municipalities.  The City presented the attached information to the committee.  At this time, no legislation has been introduced.  The City will continue to monitor this issue as the legislative session continues.

City of Lawrence signs on to letter supporting expansion of KanCare

In conjunction with the adopted legislative program for 2018, the City of Lawrence has signed on to a letter prepared by the Alliance for a Healthy Kansas which encourages the expansion of KanCare during the 2018 legislative session.   http://www.expandkancare.com/get-involved/sign-on-letter-for-kansas-cities-and-municipalities/

Common Ground Lease 2017 Annual Report

The City of Lawrence Common Ground Community Garden has entered its seventh year, fostering safe, healthy, and welcoming neighborhoods and supporting collaborative solutions. Common Ground functions through city properties licensed for no cost (or low-cost at the Incubator Farm north of town) to community members who oversee community gardens for the City.  The total number of Common Ground sites is now nine – a variety of orchards, farms, and gardens scattered throughout the City, in which 200+ gardeners grow healthy foods in their neighborhoods. The 2017 Common Ground Annual Report is available online.

The City Manager has executed two new licenses for use of city properties as part of the Common Ground community gardening program to Laura Odell (1304 Pennsylvania), Emma Hauser and Kathleen Hamilton (1313 Pennsylvania). Both licenses are for new management at existing Common Ground sites.

Douglas County Food Policy Council 2017 Annual Report

The Douglas County Food Policy Council, a joint advisory board to the City of Lawrence and Douglas County, has created its Annual Report for 2017 to share with City Commissioners. A full or condensed presentation of this report of any of the programs and policy initiatives highlighted herein is available to the Commission upon request.

Future Agenda Items

Attached, please find a summary of future agenda items.

Future Work Session Items

Attached, please find a summary of future work session items.