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2 Valuation Growth – Will most likely show little to no growth again in 2010 affecting the 2011 mill levy rate. Retail Sales – Sales tax collections were down about 1.3% in 2009 compared to Early expectations are that sales tax collections will remain weak. City Property Taxes – Will increase annually for the foreseeable future. Trend : Flat Trend: Up

3 Valuation Growth – Moderated in 2009 affecting 2010 property tax rates Sales Taxes – Declined in 2009 likely affecting 2010 forecasts City Property Taxes – Will increase before moderating 2007 to to to to %3.9%.4%0% Estimated 2006 to to to to %5.8%(1.3%)2% Budgeted 2007 to to to to %10.1%10.0%?

4 Total for all budgeted funds ,394,25424,663,86526,835,31125,983,297 Only 26% of the above amounts for any year are related to property tax funds. Of that percentage (26%), about 90% are balances in the General Fund and Bond & Interest Fund.

5 Fund General Operating$ 4,730,176$ 2,873,594$ 3,183,123$ 2,610,740 Economic Development 4,225,737 4,302,8956,452,3106,457,259 Special Park & Recreation 369, ,130605,000739,852 Special Street & Highway 383,624607,623530,448427,762

6 Fund Bond and Interest$ 3,285,359 $ 3,462,660$ 3,126,982$ 2,995,081 Water5,153,964 4,614,4144,620,8354,074,572 Wastewater3,206,6292,854,9742,380,0252,402,459 Stormwater 421, ,581372,9401,055,126

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8 General Fund Expenditures: $ 21,238,424 Revenue Source BudgetedActual Beginning Fund Balance$ 1,875,000$ 3,183,123 Property Taxes & Assessments1,367,4671,346,183 Sales Taxes7,330,0007,454,274 Franchise Fees2,696,0002,785,860 Municipal Court1,558,0351,485,939 Transfers4,042,4504,210,405 All Other Revenues3,261,6653,383,442 General Fund Revenues$ 22,130,617$ 23,849,226

9 Property Taxes & Assessments 5.6% Beginning Cash 13.3% Sales Taxes 31.3% Sales Tax Transfer 8.8% Franchise Fees 11.7% Municipal Court Revenues 6.2% 76.9%

10 Budgeted Beginning Cash Balance Actual Beginning Cash Balance Actual Revenue Budgeted Revenue

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12 Bond & Interest Mill Levy Presented at Revenue Survey:6.920 Changes Made Increase in beginning cash balance from revenue survey*($867,902)(1.941) Increased Sales Tax Transfer($500,000)(1.118) Increased Sales Taxes for Pavilion Debt Service($152,633)(0.341) Decreased Cash Reserves($250,000)(0.559) Removed Interest for Downtown Redevelopment South End Note($617,000)(1.380) Leavenworth/4th/TCB - Moved to 2011($2,641)(0.006) South End Water (Related to Redevelopment) - Moved to 2011($65,095)(0.146) South 4th St. from Ft. Riley to Pierre - Moved to 2011($41,807)(0.093) Net change in debt payments (including bond refundings)$307, Decrease in valuation over Revenue Survey projections0.072 Revised Mill Levy:2.207 *Additional special assessment revenue received over budget for 2009 (both current and delinquent)

13 Budgeted Beginning Cash Balance Actual Beginning Cash Balance Actual Revenue Budgeted Revenue

14 Actual Projected 2010 Revenues Beginning Balance 3,462,660 3,126,982 2,995,081 Ad Valorem Taxes 422, , ,004 Special Assessments 4,842,638 5,718,543 5,959,621 Transfers from Other Funds 1,791,292 1,518,676 1,676,212 Sales Tax Transfers 1,360, ,000 1,797,833 Motor Vehicle Taxes 71,378 42,397 51,497 Other Revenues 242,529 31, ,090 Total 2010 Revenues 12,192,602 11,908,728 13,500, Expenditures 12,214,763

15 Actual Projected 2010 Expenditures Special Assessments & Capital Project Bond Principal 5,096,850 4,733,400 6,850,000 Bond Interest 2,898,218 3,117,095 3,554,465 Short-Term Capital Project Other Principal 70,000 75,000 Other Interest 5,340 4,745 2,795 CIP Current CIP Debt Payments 884, , ,021 Downtown Redevelopment Downtown Redevelopment Debt Service ,810 Future Debt Approved CIP ,010 Other Expense--106,662 Total 2010 Expenditures 9,065,620 8,913,646 12,214,763

Bond & Interest Proposed Budget Total ExpendituresPossible Property Taxes Current Debt4,897,801789,437 Special Assessments (Benefit District Portion)6,457,507322,875 Approved Capital Projects (Not Yet Bonded)1,486,62526,534 Approved CIP Started (Not Yet Bonded)903,408538,686 Proposed CIP256,659234,526 Downtown Redevelopment - Future506,409313,188 Miscellaneous Expenses & Reserves1,106,662 Total$ 15,615,070$ 3,331,908 Discretionary Projects with 2011 Impact Discretionary Amount Hartford Road System - SW001P (no property tax impact) 22,133 Casement & Hayes Drive Intersection Improvements - EN027P 117,132 Construct Transient Aircraft Hangar - AP008P 84,604 Total$ 223,869

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19 Water – 1 st phased-in rate increase in nd rate increase in rd rate increase in Future rate increases necessary. Wastewater – 1 st phased-in rate increase in nd rate increase in Future rate increases necessary. Stormwater – 1 st phased-in rate increase in nd rate increase in rd rate increase in rd rate increase in Future rate increases may be necessary.

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