1. 2012 City Budget Public Hearing

2. 2012 Budget Process Annual Revenue Survey – February 22 First Budget Work Session – May 2 Second Budget Work Session – June 14 Third Budget Work Session – June 28 Fourth Budget Work Session – July 12 2012 City Budget 2 Note: From the first work session through the fourth work session, Management made budget cuts or deferrals totaling $3,424,844 and reducing property taxes by over $1.6 million. (Mill Levy Rate at 45.434) (Mill Levy Rate at 43.570) (Mill Levy Rate at 43.735) (Mill Levy Rate at 42.138)

3. 2012 Budget Highlights 3 2012 City Budget An increase of $635,784 in property taxes levied to support the 2012 City Budget or about a 3.5% increase over property taxes supporting the 2011 City Budget. (98% of this property tax increase is due to outside City services.) The Municipal Band has been placed under the Parks & Recreation Department as a new line item. The rental inspection revenues and expenditures have been deleted from the 2012 City Budget. A modest Capital Improvement Program with an estimated budget of $5,187,069 in planned projects and $862,344 in equipment costs that are spread across a number of funds within the 2012 City Budget.

4. 2011 City Budget 2012 Proposed City Budget General Fund$ 23,253,312$ 24,348,374 Special Revenue Funds 41,961,201 40,491,909 Bond & Interest Fund 17,655,525 20,345,757 Enterprise Funds 22,175,500 28,067,130 Totals:$ 105,045,538$113,253,170 4 2012 City Budget Proposed 2012 City Budget

5. 2012 Budget Snapshots Property Tax Funds 2011 Property Taxes 2012 Proposed Change General Fund$ 1,174,944$ 1,097,977($ 76,967) City Employee Ben. 628,250 688,390 60,140 KP&F (Fire) 75,000 0 Bond & Interest 2,399,386 2,429,181 29,795 Industrial Promotion 0 0 0 Park Development 0 0 0 General Improvement 0 0 0 (continued) 5 2012 City Budget

6. 2012 Budget Snapshots Property Tax Funds 2011 Property Taxes 2012 Proposed Change Fire Equipment Res.$ 50,000 $ 0 RCPD11,479,371 12,287,858 808,487 Library 2,222,386 2,303,672 81,286 6 2012 City Budget

7. 20102011 2012 Proposed Merit Pool1.0% 2.0% Union Steps 4% (every 3 years) 4% (every 3 years) 3.5% (every 2 years) Cost-of-Living (non-union) (none) 1.7% Cost-of-Living (union) 1.0% (none) 1.7% Budget Impact Merit Pool Union Steps $ 106,288 $ 81,082 COLA$ 218,504 7 2012 City Budget 2012 Proposed Salary Adjustments

8. 20102011 2012 Proposed Merit Pool (non-union) 1.0% 2.0% Merit Pool Level 12.2% Level 21.2% 8 2012 City Budget 2012 Proposed Salary Adjustments Note: Merit increases are determined on employee anniversary dates and thus have a lower overall budget impact. 20102011 2012 Proposed Step Raises (union) 4% (every 3 years) 4% (every 3 years) 3.5% (every 2 years) Note: 32 union members (about half) will receive step raises in 2012 Will average 2.0% or less

9. 9 2012 City Budget Cost-of-Living Index

10. 200920102011 2012 Proposed General $ 294,483 $ 289,650 $ 153,200$ 169,041 Fire Equipment Reserve 8,000 -20,000194,370 Special Street & Highway 1,429,753 1,141,700985,000940,000 General Improvement 35,000 50,000 Special Parks & Recreation 240,400 135,937295,000437,000 Park Development 24,000 - -- Other Special Revenue 835,800 488,300570,7001,336,200 Debt Service - 32,79077,112- Water 1,765,000 802,200437,1641,297,124 Wastewater 547,000 861,200909,7921,195,678 Stormwater 299,612 565,000512,000430,000 Total Budget: $ 5,479,048 $ 4,366,777$ 4,009,968$ 6,049,413 10 2012 City Budget CIP – Budget

11. City Services 2011 Mill Levy 2012 Proposed Mill Levy Change General Fund2.6922.444(0.248) Bond & Interest5.4975.407(0.090) Employee Benefit Fund1.4391.5320.093 Fire Equipment Reserve0.1150.111(0.004) KP&F0.1720.167(0.005) General Improvement0.000 ------ Park Development0.000 ------ Industrial Promotion0.000 ------ Outside Services RCPD26.29927.3501.051 Library4.1754.2360.061 Library EBF0.9160.891(0.025) Riley County Health0.6120.000(0.612) Totals:41.19742.138.221 11 2012 City Budget Property Tax Mill Levies In order to reduce the mill levy, the delinquency rate on special assessments was reduced from 5% to less than 2% Reserve Funds

12. City Services $ (7) 2011 Mill Levy of 41.917 2012 Mill Levy of 42.138 Mill Levy Change 0.221 General Fund$ 62$ 56$ (6) Bond & Interest126124(2) Employee Benefit Fund33352 Fire Equipment Reserve330 General Improvement000 Park Development000 KP&F43(1) Industrial Promotion000 Outside Agencies $ 12 RCPD 605*629*24 Library96982 Library EBF21 0 Riley County Health140(14) Totals:$ 964 $ 969 $ 5 * Includes delinquency 12 2012 City Budget Homeowner Impact ($200,000 home)

13. Water 2008200920102011 2012 Proposed Minimum Charge$ 7.02$ 7.51$ 8.03 3 - 20 units$ 2.05$ 2.19$ 2.34$ 2.48 21 - 400 units$ 1.38$ 1.48$ 1.58$ 1.77$ 2.00 Over 400 units$ 1.12$ 1.19$ 1.28$ 1.46$ 1.82 Utility Rate Increases 13 2012 City Budget

14. Water Rate Comparisons 14 2012 City Budget Based on average residential use of 7 units (5,250 gal)

15. Waste Water 2008200920102011 2012 Proposed Minimum Charge$ 8.84$ 10.61$ 13.26$ 15.91$ 18.30 Over 2 units$ 1.33$ 1.60$ 2.00$ 2.39$2.75 Utility Rate Increases 15 2012 City Budget

16. Waster Water Rate Comparisons 16 2012 City Budget

17. Storm Water 2008200920102011 2012 Proposed Residential$ 3.00$ 3.50$ 3.75$ 3.93$ 4.13 Small Commercial$ 5.63$ 5.68$ 6.08$ 6.38$ 6.70 Large Commercial$ 940.91$ 950.31$ 1,016.84$ 1,067.68$ 1,121.06 Utility Rate Increases 17 2012 City Budget

18. Storm Water Rate Comparisons 18 2012 City Budget

19. Conduct a Public Hearing Questions? On August 16 th First Reading of Salary Ordinance and Agreement with Local No. 2275 IAFF Second Reading of 2012 Budget Ordinances