2013 City Budget August 14 Public Hearing 1 2013 Budget Overview $416,171 increase for FT/PT employee salaries (1.7% COLA; 2.0% merit; plus negotiated union wages) Proposed 4% rate increase for the Stormwater Fund requires a Charter Ordinance Rate changes for the Water and Wastewater Funds will be recommended in November after reviewing 3rd quarter revenues Items to be approved/discussed before approving the 2013 City Budget 2 2013 Salary Overview 1.7% cost-of-living adjustment Increase steps from 3.5% to 4.0% subject to satisfactory performance Union members approved the proposed wages in June Fire Union employees 3 2013 Salary Overview 1.7% cost-of-living adjustment Variable merit rating based on two levels from 1.2% to 2.2%. This is the same salary adjustment provided in Full-time, part-time and unclassified City employees 4 2013 Stormwater Overview Residential increase of 4% -- from $4.13 to $4.29 monthly Commercial increase of 4% based on square footage of hard surface area Requires approval of Charter Ordinance and 90-day waiting period 5 2013 Budget Overview $611,050 increase in debt payments for the new fire stations $288,726 increase in salaries, benefits, and operations for the new fire stations Sunset of the half-cent county sales tax used to support economic development initiatives 30% reduction in capital improvements compared to the 2012 CIP Revenue increases in Parks & Recreation associated with fee increases that will be proposed in September following review by the Park & Recreation Advisory Board Proposed rate increases for all of the Citys enterprise funds 2013 Budget Overview 6 2013 Budget Overview (continued) Reduction of $419,790 in property taxes during the 4 th work session including: New position requests with a property tax impact were eliminated including: airport administrative assistant, airport maintenance technician, part-time zoo keeper, and a part-time recreation customer service representative $68,000 reduction in capital improvements 5% reduction in Social Services, Flint Hills aTa, Manhattan Arts Center, Municipal Band, & Wolf House $18,000 reduction in Arts in the Park programming Delay of computer equipment upgrades Restore expenditures to Economic Development fund for the K-18 payment of $75,000 and the Downtown Manhattan Inc. contract of $45,000 Transfer of Crime Stoppers program to the 2013 RCPD budget 1% additional increase in sales tax estimates for a total increase of 2.5% over 2012 estimates 3.4% increase in utility administration payment from $1,183,882 to $1,223, Budget Overview 7 2013 Published City Budget of $120,049,142 (less the CIP Reserve Fund) Budget increase of $8.6 million Increase in property taxes of $1,178, Valuation of 463,125,526 New improvement taxes of $602,553 8 2013 City Budget of $120,049,142 Budget increase of $8.6 million $4.2 million from sales tax reserves within the Bond & Interest Fund $2.4 million from Enterprise Funds $1.6 million from General Fund $0.4 million from Special Revenue Funds 2013 Budget Overview 9 2013 City Budget of $120,049,142 Budget reductions of $1,762,322 $892,293 cut by City Manager before first budget work session $870,209 cut by the City Commission during budget work sessions 10 2013 City Budget of $120,049,142 Budget increase of $8.6 million Increase in property taxes of $1,178,879 $979,904 to RCPD $122,544 to the Library $76,431 to Bond & Interest 2013 Budget Overview 11 2013 City Budget of $120,049,142 Budget increase of $8.6 million Increase in property taxes of $1,178,879 New improvement taxes of $602, Budget Overview 12 Proposed Property Tax Increase Proportion of New Improvement Taxes Actual Result City Services Those services that are under the control of the City Manager $76,431-$135,766$(59,335) Outside Services Those services that are not under the control of the City Manager $1,102,448-$456,338$646,110 Totals:$1,178,879-$592,104$586, Budget Overview (minus) 13 2013 Budget Overview ValuationTaxes Number of Homes with Increases:2056 Number of Homes with Decreases:4017 Numberof Homes Remaining Flat:130 Total Number of Homes Sampled:73 Average Annual Change(1703)17 Based on Total Proposed City Mill Levy (43.425) 14 2013 Budget Overview ValuationTaxes Number of Homes with Increases:2013 Number of Homes with Decreases:4057 Number of Homes Remaining Flat:133 Total Number of Homes Sampled:73 Average Annual Change(1,703)(4) Lowest:(47,100)(59) Highest:80,10078 Based on Proposed Mill Levy City Services Only (9.537) 15 2013 Budget Overview 16 2013 Budget Overview General Fund Capital Improvement Spending 17 2013 Budget Overview Downgrade to Aa3 Additional Interest Cost 15 Basis Points93, Basis Points155,495 Downgrade to A1 40 Basis Points249, Basis Points375,526 Bond Issue for New Fire Stations $6,340,000 Bond Rating Aa2 by Moodys 18 Budget Amendment 2012 Kansas Police & Fire Budget (KP&F) $628,000 Due to statutory changes approved by the Kansas legislature in 2011, the rates applied to the Citys retirement contributions for this fund have increased for calendar year Request amending 2012 budget to: $710,000 19 Proposed Actions 1.Conduct a public hearing. 2.Approve first reading of the salary ordinance; and adopt negotiated wage changes for the firefighters union. 3.Approve first reading of a charter ordinance amending stormwater rates. 4.Approve first reading of the 2013 budget ordinance; and approve first reading of an ordinance amending the 2012 KP&F budget. 20 Questions? August 21st Second Reading of 2013 Budget Ordinances 21