CITY COMMISSION AGENDA ITEM

Department:

City Manager’s Office

Commission Meeting Date:  August 7, 2018

Staff Contact:

Casey Toomay, Assistant City Manager

Recommendations/Options/Action Requested:

Conduct public hearing for the 2019 budget and consider adopting on first reading, Ordinance No. 9554 approving and appropriating the 2019 City of Lawrence Operating and 2019-2023 Capital Improvement Plan Budget, if appropriate.

Executive Summary:

Background

Pursuant to action taken by the City Commission at its July 17, 2018 meeting, notice of public hearing to be conducted on August 7, 2018 was published on July 20, 2018 in the Lawrence Journal World. The purpose of the public hearing is to receive and respond to questions of citizens related to the 2019 proposed budget.

The notice of public hearing and budget summary established the maximum expenditure limits of the 2019 budget. After the public hearing, the City Commission can lower, but cannot raise, the maximum expenditure level.

City Manager’s Recommended 2018 Budget

The City Manager’s Recommended budget included operating and capital expenditures totaling $206,653,000.

In addition to operating and capital expenditures, fund balance of $73,757,548 was also budgeted to meet statutory requirements. It should be noted that much of the budgeted fund balance is restricted for specific purposes. The City’s total budget includes 44 distinct funds; however, only 34 funds are included in the certified budget as required by State Statute. The remaining 10 funds are reported in the budget document for transparency.

The reconciliation chart outlines which funds are included in the certified budget and which funds are only reported in the budget document. This chart also outlines the fund balance for each fund.

The Recommended Budget was balanced through growth in revenue, reductions in expenditures, and deferral of operational and capital requests. It should be noted that the 2019 Recommended Budget includes increases in utility fees (water, sewer, stormwater). These fees have yet to be approved by the City Commission. If these rates are not approved at the recommended level, there will be an impact to how services are currently being provided. This may include a reduction in the level of service, the elimination of current programs, or other necessitated service impacts.

Budget Calendar

Tuesday, August 7	Public Hearing Budget Ordinance Adopted on First Reading
Tuesday, August 14	Budget Ordinance Adopted on Second Reading
Friday, August 17	Budget Ordinance Published in the Lawrence Journal World
Friday, August 24	Statutory Deadline to File Budget with County Clerk

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 notice of public hearing.

Attachments:

Ordinance No. 9554

Certificate of 2019 Budget

Capital Improvement Plan by Funding Source

Reconciliation to the State Budget Forms

Reviewed By: (for CMO use only)

☐TM ☐DS ☒CT ☐BM