CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date: July 17, 2017
Staff Contact:	Casey Toomay, Assistant City Manger
Recommendations/Options/Action Requested:
Authorize publication of the 2019 budget summary and establish August 7, 2018 as the public hearing date, if appropriate.
Executive Summary:		Budget Summary / Notice of Public Hearing Under K.S.A. 79-2929, a public hearing on the proposed budget must be held and notice of the hearing must be given at least 10 days prior to the hearing. The required budget summary/notice of public hearing document sets the upper limit of the 2019 expenditure budget and the mill levy rate. Once the summary/notice of public hearing is published, the budgeted expenditure amount and the mill levy rate can be reduced but cannot be increased. The attached notice sets the public hearing for August 7, 2018 and establishes a maximum expenditure level for 2019 of $280,410,548 (including ending fund balances). This includes the recommended mill levy rate of 33.279 mills which is flat. Adjustments Since July 10 Work Session On July 10, 2018 an updated City Manager’s Recommended Budget was presented that showed the total expenditures of $206,653,000 (net of fund balances). Since then, some additional adjustments have been made. These adjustments are summarized below.  Updates to the CIP to add Lawrence Loop projects include: · $100,000 of funding for design of the downtown portion of the Lawrence loop project was moved from 2021 to 2019 with construction to take place in 2020 and 2021. The funding source was changed from the general fund to the capital reserve fund. The total cost of construction is estimated at $1.3 million, with $600,000 to be paid from the Capital Improvement Reserve Fund and $700,000 to be paid with state grants. · $1,200,000 for construction of the Queens Road to Kasold portion of the Lawrence Loop was added to 2022 and 2023. $720,000 to be paid from the General Fund and $480,000 from state grants. Additional changes made to the CIP include: · The indoor aquatic center event space project was moved from 2023 to unfunded. · $2M for the downtown parking structure project was moved from 2020 to unfunded. The following adjustments were made to the CIP due to the lack of participation from Douglas County in 2019: · Repairs to the Community Health Building elevator for $224,000 were moved from 2019 to 2020; · Repairs to the pavement at the Community Health Building for $400,000 were moved from 2019 to 2020; · The Douglas County portion of the fire medical pavement replacement of $769,200 was moved from 2019 to 2020 but the City portion of $2,230,800 remains in 2019; · The reconstruction of 19th Harper to O’Connell was moved from 2019 to 2021. However, $325,000 for design and land acquisition is included in 2019 to allow for completion of a design that will accommodate repairs to the waterline that occur before 2021. The overall cost including County share remains at $3,625,000. The only adjustment to the 2019 operational budget due to the CIP is the addition of $100,000 in the 2019 Capital Reserve Fund associated with the downtown portion of the Lawrence Loop. The General Fund was adjusted by adding $120,000 to the finance department for general overhead expenses. To balance the General Fund, transfers to the Capital Improvement Reserve Fund and Equipment Reserve Fund were both decreased by $40,000 and the $40,000 in the City Manager’s Office for the Citizen Survey was eliminated. The Special Alcohol Fund expenditures were increase by $37,000 to match the increase in alcohol tax estimates. Staff recommends the Social Services Advisory Board be asked to recommend how to allocate these additional funds following adoption of the budget. State Budget Forms The City is required to use the State Budget Forms when submitting the budget to the County and State. These forms are used by all municipalities across the state and are used to prepare the notice of public hearing. There are two significant differences between the State Budget Forms and the City Manager’s Recommended Budget. First, the fund balance is presented differently. Second, there are some funds that were presented in the recommended budget that are not included on the state forms. The total 2019 budget of $280,410,548 as outlined in the state budget forms, is the amount that will be used on the notice of public hearing that is published.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Innovative Infrastructure and Asset Management Core Services Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		The total 2019 budget is $280,410,548 as outlined in the state budget forms.
Attachments:		Notice of Public Hearing Reconciliation to the State Budget Forms

Reviewed By: (for CMO use only)

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