2014 City Budget August 6 – Public Hearing 1

2014 Budget Overview 2014 City Budget of $130,785,167 (including the CIP Reserve Fund) Budget increase of $8,869,583 Increase in property taxes of $956, Valuation of 484,979,521 (an increase of about 4.8% over 2012) New improvement property taxes of about $534,000 2

2014 City Budget of $130,785,167 Budget increase of about $9 million over the 2013 City Budget  $3.2 million from Bond & Interest Fund  $2.3 million from Enterprise Funds  $1.2 million from General Fund  $2.3 million from Special Revenue Funds 2014 Budget Overview 3 About one-half of this increase is related to Enterprise Fund reserves and the renewed Riley County sales tax

2014 Budget Overview There were budget reductions and funding changes of about $844,700 or mills since the first budget work session 4

2014 Budget Overview 5 Increase/ Decrease Mill Levy Change First Work Session Proposed mill levy increase Second Work Session No Action Third Work Session Valuation increase10,334,500(.998) Budget reductions and funding changes (719,209)(1.483) Fourth Work Session Budget reductions and funding changes (125,530)(0.260)

2014 Budget Overview (proposed) …and a proposed mill levy of …

Increase in property taxes of $ 956, Budget Overview 7 Property Taxes for Outside Agencies RCPD $ 168,410 Library 50,102 Library EBF 25,056 $ 243,568 RCPD Property Taxes for City Services Delinquency General Fund $ 682,014 (263,476) Employee Benefit Fund 300,808 Fire Equipment Reserve 168,900 KP&F 443,639 Bond & Interest Fund (622,646) $ 972,715

Proposed Increase to Property Taxes Absorbing RCPD Delinquency New Improvement Property Taxes General Fund$ 682,014(263,476)$ 533, Budget Overview 8 Please recall that “new improvement taxes” are property taxes on new construction and additions that have never been taxed before.

2014 Budget Overview Based on Total Proposed City Mill Levy (43.439) 9 An…. “increase in property taxes may be more of a function of market appraisal under Kansas law than it is local mill levy rates.” “The 2014 City Budget, as published, will see no increase in residential or commercial City property tax bills, presuming that a property did not experience an increase in market value.”

2014 Budget Overview City Enterprise Funds 10 Water Fund – A rate adjustment discussion is planned this November after reviewing 3rd quarter revenues. Wastewater Fund – A rate adjustment of 3% for 2014 is proposed. Stormwater Fund – A rate adjustment of 3% for 2014 is proposed. Requires approval of a Charter Ordinance and 90-day waiting period.

2014 Budget Overview Recommend funding the Manhattan Arts Center of $43,700 from the General Fund (currently in the Economic Development Fund). Recommend transferring a payment amount of $43,700 for the Airport terminal design from the Bond & Interest Fund to the Economic Development Fund. Discuss a proposal to realign agency funding within the Social Services Advisory Board. Items to be approved/discussed before approving the 2014 City Budget 11

Proposed Actions 1.Conduct a public hearing. 2.Approve first reading of the 2014 budget ordinance 3.Approve first reading of a charter ordinance amending stormwater rates. 4.Approve first reading of an ordinance amending wastewater rates. 5.Approve a finding that the 2014 Economic Development Fund satisfies the intent of resolution E. 12

Questions? August 20th Second Reading of 2014 Budget Ordinances 13