1. 2013 City Budget Manhattan ~ Kansas Work Session Two

2. 2013 Budget Challenges State & Federal Mandates KPERS Regulations Water & Wastewater Treatment Plants K-18 Local Match Local Directives Fire Station Staffing Riley County Police Department 2

3. 2013 Budget Challenges Sales Tax Renewal Expenditure shifts from Economic Development Fund: 3 ExpenditureAnnual Cost2013 Funding Source K-18 Local Match (1/2 of annual payment) $ 75,000General Improvement Administrative Expenses $ 37,500General Fund Chamber of Commerce Contract $ 125,000Industrial Promotion Military Affairs $ 40,000Industrial Promotion Corporate Tech Park $ 10,000Industrial Promotion 24/7 Marketing $ 40,000Not recommended for funding Downtown Manhattan Inc. $ 45,000General Fund $ 372,500

4. Community Enhancements 4 Downtown Redevelopment Flint Hills Discovery Center Sunset Zoo Education Center Pools Traffic Shop Fire Stations Water & Wastewater Treatment Plants

5. 2013 Additional Property Taxes 5 General Fund $ 38,293 Employee Benefit Fund $ 23,966 Fire Equipment Reserve $ 100,000 General Improvement $ 75,000 Kansas Police & Fire $ 168,900 Bond & Interest $ 173,062 $ 579,221 The city has tightly managed internal resources to provide additional assistance with a small impact to the Manhattan property tax payer. Property Taxes make up only 4.3% of total General Fund revenue.

6. 2013 Property Tax Levies Projected Property Taxes for Outside AgenciesLeviesChange RCPD28.5511.189 Library4.3390.101 Library EBF0.9310.040 32.4911.329 Property Taxes for City Services General Fund2.4450.000 Employee Benefit Fund1.5330.000 Fire Equipment Reserve0.3230.212 General Improvement0.161 Park Development0.000 KP&F0.5250.358 Industrial Promotion0.000 Bond & Interest Fund5.6000.191 10.5870.922 Possible 2013 Mill levy 44.407 Estimated increase over 2012 Mill Levy2.251 6

7. 2013 Budget Summary (Proposed)Percent 20092010201120122013 Change General Fund$ 22,130,617$ 23,122,213$ 23,253,312$ 24,348,374$ 26,320,8858.1% Total of All Special Revenue Funds 41,053,86041,542,42241,961,20140,491,90940,855,6780.9% Total of All Enterprise Funds 20,254,82221,008,90522,175,50028,067,13030,505,0208.6% Bond & Interest Fund11,955,56713,484,91017,655,52520,345,75724,495,88620.4% Total City Budget:$ 95,394,866$ 99,158,450$ 105,045,538$ 113,253,170$ 122,177,4697.8% 7

8. Breakdown of Budget Increase ~ over past 5 years 8 $26.7 Million $5.9 Million in Property Tax $3.1 Million in Property Tax for Services & Debt $1 Million in City Services ($ 62,162 ) Actual Reduction in General Fund property taxes compared to 2009.

9. General Fund Increase (Proposed) 20122013 Change General Fund$ 24,348,374$ 26,320,885$1,972,511 9 Increase over 2013 Personnel $ 1,431,150 Contractual 291,632 Commodities 185,380 Grants 58,000 Other Charges (700) Capital Outlay (6,222) Debt Service 6,560 Transfers 6,711 TOTAL $ 1,972,511

10. Special Revenue Fund(s) Increase (Proposed) 20122013 Change Special Revenue Fund(s)$40,491,909$40,855,678$363,769 10 Increase over 2013 Eco Devo $ (702,396) KP&F 142,000 General Improvement 112,283 Library 129,896 Sales Tax 713,977 Special Street & Highway (331,167) Special Sunset Zoo 144,000 RCPD 1,090,090 CIP Reserve Fund (850,000) All Other Funds (84,914) TOTAL $ 363,769

11. Bond & Interest Increase (Proposed) 20122013 Change Bond & Interest Fund20,345,75724,495,886$4,150,129 11 Increase over 2013 Quality of Life Reserves $ 3,693,443 Bond Payments 371,488 Temp Notes (150,838) STAR & TIF 236,036 TOTAL $ 4,150,129 Of this increase, only $173,062 (or 4.17%) is paid by property taxes.

12. 2013 CIP Overview 2012 CIP2013 CIP Increase/ (Decrease) Equipment2,403,831664,500(1,739,331) Projects16,850,91412,962,558(3,888,356) Total19,254,74513,627,058(5,627,687) 12 General Fund CIP History 2008$525,950 2009294,483 2010289,650 2011153,200 2012169,041 2013138,933 The city has experienced a 66% decrease in CIP funding from the General Fund since 2008:

13. 2013 CIP Overview Major Improvements…. Total Project Cost 2013 Budget ImpactFunding Source Airport General Aviation Apron1,771,579$1,819G.O. Bond Supported by Grants Airport Parking Lot2,500,000---G.O. Bond Supported by CFC’s & Parking Fees Passenger Terminal Expansion2,733,626---G.O. Bond Supported by Grants, Sales Tax & Property Taxes North Manhattan Expansion Design Claflin to Kimball 500,000---G.O. Bond Supported by Grants, Sales Tax & Property Taxes Parks & Recreation Offices1,300,000---G.O. Bond Supported by Sales Tax & Property Taxes Seth Child Sewer Relief Project776,000---Wastewater 13

14. Enterprise Funds Water Fund Wastewater Fund Stormwater Fund 14

15. Water Fund 2013 Budget Proposed 4% Increase in Water Revenues 2013 Budget Increase Water Treatment Plant Upgrade KDHE Loan Payment $635,989 Operating Expense Increases Related to Plant Expansion $321,000 Other CIP Projects $165,000 Replacement Programs (Hydrant, Valve, and Meter Replacements) and Other Water Treatment Plant Repairs $241,361 Total Budget Increase - Water Fund$1,363,350 15

16. Wastewater Fund 2013 Budget Proposed 3% Increase in Wastewater Revenues 2013 Budget Increase WWTP & Wildcat Lift Station Washer Compactor$397,200 Central Basin Improvements $185,080 Operating Expense Increases Related to Plant Expansion $160,000 Sewer Maintenance Infrastructure CIP Projects$155,260 Total Budget Increase - Wastewater Fund$894,540 16

17. Stormwater Fund 2013 Budget Proposed 4% Increase in Stormwater Revenues 2013 Budget Increase College - Kimball - Repair Flume $80,000 STMW Maintenance $25,000 Cash Reserve and Operating Expense Increases $105,000 Total Budget - Stormwater Fund$180,000 17

18. Water Rate Increases 18 20112012201320142015 Proposed with Rate Study7%9% Current Proposals *7% 4%6% Savings to the User per Unit: 0-2 $ - $ 0.31 $ 0.49 $ 0.65 $ 0.86 2-21 $ - $ 0.15 $ 0.31 $ 0.47 $ 0.61 21-400 $ - $ (0.02) $ 0.09 $ 0.15 $ 0.29 Over 400 $ - $ (0.08) $ - $ 0.06 $ 0.14 * 2014 and 2015 rate proposals are based upon projected revenues received in 2012 and 2013, which may have to be revised if projections are not met.

19. Reminder… June 26th - Third Budget Work Session on the 2013 City Budget plus Requests by Outside Agencies 19

20. 2013 Budget Considerations Seeking direction and consensus on… 2013 mill levy rate Utility budgets and proposed rate increases Any other budgetary concerns 20