1. 2013 City Budget ~ Manhattan ~ Kansas Work Session Four

2. Changes from 3 rd WS 2 3rd Work Session 4th Work Session Change from 3rd to 4th Work Session General Fund$ 26,255,885$ 26,246,885$ (9,000) Special Revenue Funds40,855,67840,833,188(22,490) Bond & Interest Fund24,495,886 ----- Enterprise Funds30,505,020 ----- Totals:$ 122,112,469$ 122,080,979$ (31,490) Revised valuations were also received from Riley and Pottawatomie Counties, with an impact of +0.151 mills. Final valuations are usually not received until late October.

3. Proposed 2013 Mill Levy 3 2012 Current Levy 4th Work Session Proposed Change Outside City Services32.49133.8871.396 City Services9.66510.4440.779 Totals42.15644.3312.175

4. Major Contributors to Mill Levy Increase 4 Sales Tax Renewal 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 $ 332,500

5. Major Contributors to Mill Levy Increase 5 Fire Station Addition / Changes ExpenditureAnnual Increase2013 Funding Source Salaries $ 190,000General Fund Kansas Police & Fire 31,426KP&F Fund Employee Benefits 46,850EBF / General Fund Additional Operations 20,450General Fund Debt Service 177,000Bond & Interest $ 465,726

6. Major City Increases in 2013 6 ExpenditureAnnual Increase ½ Cent Sales Tax Initiative $ 332,500 Fire Stations 465,726 Total Expenditure Increase 798,226 Current Property Tax Increase 496,221 At our current budget amount, $302,005 of these increases have already been absorbed by other revenue sources in City operations.

7. Current Increase in Property Taxes City Services 7 City Services 2012 Mill Levy Rate of 9.665 2013 Mill Levy Rate of 10.444 Annual Change General Fund $ 1,097,977$ 1,127,270$ 29,293 Bond & Interest2,429,1812,602,243173,062 Employee Benefit Fund 688,390 712,35623,966 Fire Equipment Reserve 50,000 85,000 35,000 General Improvement 0 75,000 Park Development 0 0 ------ KP&F 75,000 234,900 159,900 Industrial Promotion 0 0 ------ Property Tax Increase $496,221 Additional Property Taxes from Valuation Growth $135,766 Reduction required to maintain a flat mill levy$360,455 Reduction required to maintain flat city services mill levy $360,455

8. Current Increase in Property Taxes Outside Services 8 Outside City Services 2012 Mill Levy Rate of 32.491 2013 Mill Levy Rate of 33.887 Annual Change RCPD12,287,85813,267,762979,904 Library 1,903,386 1,994,828 91,442 Library EBF 400,286 431,388 31,102 Property Tax Increase $1,102,448 Additional Property Taxes from Valuation Growth $456,338 Reduction required to maintain a flat mill levy$646,110 Reduction required to maintain flat city mill levy for all funds $1,006,565

9. Commission Request Options to Reduce Property Taxes 9 City Property Tax Scenarios Additional Tax Increase for City Services Current Reductions Needed Increase City Property Taxes to Absorb 25% of the Fire Station Operations and Debt Service $ 360,455$ 0 Increase City Property Taxes Equal to Fire Station Personnel & Operations 288,72671,729 No Mill Levy Increase in City Services 135,766 360,455 No Mill Levy Increase in City Services and Absorb Partial Increase in Outside Agencies (109,466) 605,687 No Mill Levy Increase in City Services and Absorb 100% Increase in Outside Agencies (510,344) 1,006,565 * * With these options, the City is also losing the growth in valuation. *

10. Reminder… 10 July 29 th - - Budget Publication in Manhattan Mercury. After this publication, the budget may be further reduced, but cannot increase. August 14 th - - Public Hearing on the 2013 City Budget

11. 2013 Budget Considerations 11 2013 City Budget Provide direction for publication of the 2013 City Budget.