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2013 City Budget Manhattan ~ KansasWork Session Two12013 Budget ChallengesState & Federal MandatesKPERS RegulationsWater & Wastewater Treatment PlantsK-18 Local MatchLocal DirectivesFire Station StaffingRiley County Police Department

222013 Budget ChallengesSales Tax RenewalExpenditure shifts from Economic Development Fund:3ExpenditureAnnual Cost2013 Funding SourceK-18 Local Match (1/2 of annual payment) $ 75,000 General ImprovementAdministrative Expenses $ 37,500 General FundChamber of Commerce Contract $ 125,000 Industrial PromotionMilitary Affairs $ 40,000 Industrial PromotionCorporate Tech Park $ 10,000 Industrial Promotion24/7 Marketing $ 40,000 Not recommended for fundingDowntown Manhattan Inc. $ 45,000 General Fund $ 372,500 3Community Enhancements4

Downtown Redevelopment Flint Hills Discovery Center Sunset Zoo Education Center Pools Traffic Shop Fire StationsWater & Wastewater Treatment Plants

42013 Additional Property Taxes5General Fund $ 38,293Employee Benefit Fund $ 23,966Fire Equipment Reserve $ 100,000General Improvement $ 75,000 Kansas Police & Fire $ 168,900Bond & Interest $ 173,062 $ 579,221The 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.52013 Property Tax LeviesProjectedProperty Taxes for Outside AgenciesLeviesChangeRCPD28.5511.189Library4.3390.101Library EBF0.9310.04032.4911.329Property Taxes for City ServicesGeneral Fund2.4450.000Employee Benefit Fund1.5330.000Fire Equipment Reserve0.3230.212General Improvement0.1610.161Park Development0.0000.000KP&F0.5250.358Industrial Promotion0.0000.000Bond & Interest Fund5.6000.19110.5870.922Possible 2013 Mill levy 44.407Estimated increase over 2012 Mill Levy2.251662013 Budget Summary(Proposed)Percent20092010201120122013ChangeGeneral Fund $ 22,130,617 $ 23,122,213 $ 23,253,312 $ 24,348,374$ 26,320,8858.1%Total of All Special Revenue Funds 41,053,860 41,542,422 41,961,201 40,491,909 40,855,6780.9%Total of All Enterprise Funds 20,254,822 21,008,905 22,175,500 28,067,13030,505,0208.6%Bond & Interest Fund11,955,567 13,484,910 17,655,52520,345,75724,495,88620.4%Total City Budget: $ 95,394,866 $ 99,158,450 $ 105,045,538 $ 113,253,170 $ 122,177,4697.8%77Breakdown of Budget Increase ~ over past 5 years8Actual Reduction in General Fund property taxes compared to 2009.8General Fund Increase(Proposed)20122013Change General Fund $ 24,348,374$ 26,320,885$1,972,5119Increase 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 9Special Revenue Fund(s) Increase(Proposed)20122013Change Special Revenue Fund(s)$40,491,909 $40,855,678$363,76910Increase over 2013 Eco Devo $ (702,396) KP&F 142,000 General Improvement 112,283 Library 129,896 Sales Tax 713,977Special Street & Highway (331,167) Special Sunset Zoo 144,000RCPD 1,090,090CIP Reserve Fund (850,000)All Other Funds (84,914) TOTAL $ 363,769 10Bond & Interest Increase(Proposed)20122013Change Bond & Interest Fund20,345,75724,495,886$4,150,12911Increase over 2013Quality of Life Reserves $ 3,693,443Bond Payments 371,488Temp 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.112013 CIP Overview2012 CIP2013 CIPIncrease/(Decrease)Equipment2,403,831664,500(1,739,331)Projects16,850,91412,962,558(3,888,356)Total19,254,74513,627,058(5,627,687)12General Fund CIP History2008$525,9502009294,4832010289,6502011153,2002012169,0412013138,933The city has experienced a 66% decrease in CIP funding from the General Fund since 2008:2013 CIP OverviewMajor Improvements.Total Project Cost2013 Budget ImpactFunding SourceAirport General Aviation Apron1,771,579$1,819G.O. Bond Supported by GrantsAirport Parking Lot2,500,000---G.O. Bond Supported by CFCs & Parking FeesPassenger Terminal Expansion2,733,626---G.O. Bond Supported by Grants, Sales Tax & Property TaxesNorth Manhattan Expansion DesignClaflin to Kimball500,000---G.O. Bond Supported by Grants, Sales Tax & Property TaxesParks & Recreation Offices1,300,000---G.O. Bond Supported by Sales Tax & Property TaxesSeth Child Sewer Relief Project776,000---Wastewater13Enterprise FundsWater FundWastewater FundStormwater Fund1414Water Fund 2013 BudgetProposed 4% Increase in Water Revenues2013Budget IncreaseWater 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$1,363,35015Wastewater Fund 2013 BudgetProposed 3% Increase in Wastewater Revenues2013Budget IncreaseWWTP & Wildcat Lift Station Washer Compactor$397,200Central Basin Improvements $185,080Operating Expense Increases Related to Plant Expansion $160,000 Sewer Maintenance Infrastructure CIP Projects$155,260Total Budget Increase - Wastewater Fund$894,540 16Stormwater Fund 2013 BudgetProposed 4% Increase in Stormwater Revenues2013Budget Increase College - Kimball - Repair Flume $80,000 STMW Maintenance $25,000 Cash Reserve and Operating Expense Increases $105,000Total Budget - Stormwater Fund$180,000 17Water Rate Increases 1820112012201320142015Proposed with Rate Study7%9%9%9%9%Current Proposals *7%7%4%6%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.18ReminderJune 26th - Third Budget Work Session on the 2013 City Budget plus Requests by Outside Agencies

19192013 Budget ConsiderationsSeeking direction and consensus on

2013 mill levy rateUtility budgets and proposed rate increasesAny other budgetary concerns

2020