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2012 City Budget ~ Manhattan ~ KansasWork Session Two12012 City Budget2012 Budget ChallengesDeclining ending cash balancesMinimal reservesOngoing maintenance and staffing of several new City facilitiesIncreasing property tax requirements from some outside agenciesIncreasing property tax requirements for the Bond & Interest FundFuture rate increases across all enterprise funds222012 Budget Summary(Proposed)Percent20082009201020112012ChangeGeneral Fund $ 20,801,075 $ 22,130,617 $ 23,122,213 $ 23,253,312 $ 24,813,5996.7%Total of All Special Revenue Funds 36,172,813 41,053,860 41,542,422 41,961,201 40,699,206(3.0%)Total of All Enterprise Funds 20,030,586 20,254,822 21,008,905 22,175,500 28,067,13026.6%Bond & Interest Fund12,106,658 11,955,567 13,484,910 17,655,52520,391,99215.5%Total City Budget: $ 89,111,132 $ 95,394,866 $ 99,158,450 $ 105,045,538 $ 113,971,9278.5%2012 City Budget332012 City Budget2012 Property Tax LeviesProjectedProperty Taxes for Outside AgenciesLeviesChangeRCPD27.149.0850Library4.3310.156Library EBF0.911(0.005)Riley County Health Department0.6470.03533.0391.037Property Taxes for City ServicesGeneral Fund3.1540.462Employee Benefit Fund1.5660.127Fire Equipment Reserve0.1130.000General Improvement0.0000.000Park Development0.000(0.002)KP&F0.169(0.003)Industrial Promotion0.0000.000Bond & Interest Fund5.5290.03210.5310.616Possible 2012 Mill levy 43.570 Estimated increase over 2011 Mill Levy1.65344Issues from First Work Session55A. Options for Reducing Property Tax (Information Requested)Remove RCPD delinquency (.814 mills)Reduce General Fund (.385 mills)Reduce special assessment delinquency (.453 mills).

Total mill levy reduction of 1.652 mills 2012 City Budget66Total revenue applied to 2010 Debt Payment - $ 1,801,770Total debt service payments in 2010 - $995,469Excess revenue - $ 806,301Trustee Fee = $5,00025% to the Special Redemption Fund = $200,32532% to the City of Manhattan = $258,29943% to Dial Realty = $342,6762011 projections indicate revenue exceeding expenses by 25%. 2012 City BudgetB. Analysis of TIF Revenues (Information Requested)77Majority of operational expense to date came from 1% transient guest tax approved in Charter Ordinance 46 which authorized up to a 2% increase in the tax rate to assist with Discovery Center operations.For 2012, 1% of the transient guest tax ($169,500) will be transferred to the General Fund. An additional $169,500 will be transferred from the CVB fund balance. In total, this is equivalent to 2% of the transient guest tax. Remainder of 2012 revenue budget will come primarily from admission fees and other direct revenues.No property tax is anticipated for the Discovery Center operational budget.2012 City BudgetC. Discovery Center Operations(Information Requested)88Transient Guest Tax First Class Cities

1Overland Park9.00%2Atchison8.00%3Lenexa8.00%4Unif. Govt. Wy. Co.8.00%5Hutchinson7.00%6Leavenworth7.00%7Leawood7.00%8Salina6.70%9Dodge City6.00%10Emporia6.00%11Garden City6.00%(County Tax)12Lawrence6.00%13Liberal6.00%14Manhattan6.00%15Newton6.00%16Olathe6.00%17Parsons6.00%18Shawnee6.00%19Topeka6.00%20Wichita6.00%21Coffeyville5.00%(County Tax)22Fort Scott5.00%23Junction City5.00%(County Tax)24Pittsburg4.00%(County Tax)25Prairie Village0.00%9Discovery Center compared to eight other museums both in Kansas and across the Midwest.Discovery Center annual attendance has been conservatively estimated lower than most similar facilities.Discovery Center admission fees fall well within the range of similar facilities. Discovery Center footprint smaller than most similar facilities.

2012 City BudgetD. Other Museum Visitation Statistics(Information Requested)1010City current has all three national rating agencies rate each temporary note/general obligation bond issues. Moodys (Aa2); Standard & Poor (AA); and, Fitch Ratings (AA+)A rating downgrade of one notch likely would increase the Citys interest rate from .15% to .25%.A rating downgrade of two notches likely would increase the Citys interest rate from .40% to .60%.The affect of any rating downgrade would result in hundreds of thousands in additional interest over the life of a bond issue.

2012 City BudgetE. Effects on Bond Ratings(Information Requested)1111For the 2012 CIP, there were three citizen requests and four Board/Committee requests. Only one citizen request has been added to the 2012 CIP (Knox Lane sidewalk to Northeast Park funded by grant)All four Board/Committee requests have been added to the 2012 CIP. Total budget impact of these requests is $25,000.2012 City BudgetF. Citizen/Board/Committee CIP Requests(Information Requested)12122012 CIP Overview2011 CIP2012 CIPIncrease/(Decrease)Equipment1,950,0002,403,831453,831Projects*44,608,80316,746,214(27,862,589)Total46,558,80319,150,045(27,408,758)*In 2011, the Wastewater Treatment Plant Upgrade and Expansion project was included as part of the Capital Improvement Program at a projected cost of $22,892,000.2012 Citizen and Board Requests

Sidewalk to Northeast Park = $95,000 (Grants) Moro Bicycle Boulevard Project = $15,000 (Special Street and Highway) Installation of Alternative Transportation Traffic Signs = $5,000 (Special Street and Highway) Installment of Bicycle Racks in Downtown = $5,000 (Special Street and Highway) Historic Street Lighting = $96,000 (Other Sources)132012 CIP OverviewMajor Improvements.Total Project Cost2012 Budget ImpactFunding SourceLevee Design & Construction2,150,000---G.O. Bond Supported by Stormwater FeesReconfigure & Expand Airport Short-Term Parking Lot1,565,000---G.O. Bond Supported by Parking FeesHartford Road System Phase 21,400,000---G.O. Bond Supported by Stormwater FeesConsolidated Rental Car Facility1,200,000---G.O. Bond Supported by CFCsFt. Riley Main Upsizing SCS 25686,000---G.O. Bond Supported by Wastewater Fees

New Traffic Maintenance Facility650,000650,000CIP Reserve Fund142012 City BudgetTraffic Operation Building2012 Programmed ProjectRoad Map to Starting ConstructionRFP to solicit and hire an architect for design of the structure. Enter into agreement with architect for design services Notification to KDHE about proposed project scopeMunicipal zoning documents to planning board and city commission for public commentRezoning of PropertyDevelopment of final plans for constructionSubmittal of Plans to Code DepartmentStart construction of the new facility. 15152012 City BudgetTraffic Operation Building.cont.Restrictive Agreement with Kansas Department of Health and Environment to Limitations of the PropertyProperty shall not be used for residential purposes of any type to include but not limited to house, apartment, mobile home, nursing home, or condominium. Shall not be used a public area such as schools, educational center, day care center, playground or similar structures. No basementsNo water wellsFootings kept 5 feet or less depth, no basements, slab foundation design is acceptable. 1616Enterprise FundsStormwater FundWater FundWastewater Fund1717Enterprise Funds - StormwaterPast 10 Years of investment in the community, an overview for 2012 and beyond

Past investments in projects for the community

Large long term projects that have community impact in 2012

Backlog of Projects from original 1995 Stormwater Master Plan

City Commission direction will be used to shape out years of storm water projects programmed for the community

2012 City Budget1818Enterprise Funds - StormwaterStormwater Infrastructure 10-year CIP Investment History Project (Total Cost Includes Grants and Other Sources)City ShareAllen Road 326,620 Anderson Avenue (Total Cost = $7,093,450) 2,406,110 Tuttle Creek Blvd. Phase 1 (Total Cost = $3,490,655) 628,885 Poyntz Pump Station (Total Cost = $1,962,631) 557,759 Prairie Lakes (Total Cost = $1,593,531) 713,266 Marlatt Waterway 611,575 Downtown Stormwater Project #15 1,925,000 Dickens Drainage Improvements 155,656 Shirley Lane 121,590 McCall Detention Ponds 100,000 Eureka Tributary Study 240,000 Levee Restudy 579,000 Levee Certification (Investigation) 407,074 Total Stormwater Improvements: 8,772,535 1919Stormwater Fund 2012 BudgetProposed 5% Increase in Stormwater Revenues2012Budget IncreaseDowntown Stormwater Project #15 Debt Payment 225,240 Watershed Analysis 100,000 Operating Expense Increases 3,760 Total Budget - Stormwater Fund$329,000 20Enterprise Funds Stormwater Rates21212012 CIP ProjectsPending Stormwater ProjectsLevee Certification Construction ~ $600,000,000 valued property that is protected by the levee

Hartford Road System ~ $1,992,748 investment that would provide relief to this long term problem area

Watershed Analysis ~ City Wide update ~ 3 Year Program

Corps of Engineers Levee Study ~ Protection Study of original authorization of flood water release from Tuttle Creek

Minor Maintenance Projects ~ City Wide

2012 City Budget22222013 & Beyond CIP ProjectsBacklog of Stormwater ProjectsTecumseh-Quivera System ~ Design 90% CompletedCiCo Tributary ~ Study Phase StartedAllen Road SystemSouth 14th Street System Bluemont Avenue SystemBertrand Street SystemSouth Manhattan Avenue SystemKimball and Seaton Ave SystemCasement Road Reinforced BoxAnd many more projects identified from 1995 SWMMP, plus the Northview Drainage Study and the East Side Drainage Study

2012 City Budget2323Enterprise Funds - WaterWater Infrastructure 10-year CIP Investment History Water Main Improvement Projects $9,135,037 Water Meter Replacement $2,456,145 Water Tank/Tower Maintenance $1,574,336 Well Field Maintenance $1,053,774 Water Treatment Plant Maintenance $661,764 Equipment $429,988 Water Main Maintenance $245,055 Planning Studies $241,688 Generator Improvements $110,842 Subtotal$15,908,629 Water Treatment Plant Improvements $18,640,133 Total Water Improvements$34,548,762 2424Enterprise Funds WaterSewer Lining and Manhole Rehabilitation

2525Water Fund 2012 BudgetProposed 7% Increase in Water Revenues2012Budget IncreaseWater Treatment Plant Upgrade KDHE Loan Payment $635,989 Increase in Other Operating Expenses and Reserves $390,503 Operating Expense Increases Related to Plant Expansion $283,390 Other CIP Projects $262,500 24 " Water Line - WTP to Hostetler $250,000 Replacement Programs (Hydrant, Valve, and Meter Replacements) $188,960 2007 New & Parallel Line Construction - Phase III $147,650 Other Water Treatment Plant Repairs $130,000 Konza Water Loan Payment and Changes in Debt Service Payments $73,998 Total Budget Increase - Water Fund$2,362,990 26Enterprise Funds Water Rates2727Enterprise Funds - WastewaterWastewater Infrastructure 10-year CIP Investment History Sanitary Sewer System Improvements $13,365,815 Sewer Lining and Manhole Rehabilitation $3,416,580 Wastewater Treatment Plant Maintenance $1,531,232 Equipment $645,097 Planning Studies $595,052 Subtotal$19,553,776 Wastewater Treatment Plant Expansion/Mandates $25,010,797 Total Wastewater Improvements:$44,564,573 2828Enterprise Funds WastewaterSewer Lining and Manhole Rehabilitation

2929Wastewater Fund 2012 BudgetProposed 15% Increase in Wastewater Revenues2012Budget Increase WWTP Upgrade & Expansion, K18 /East Miller Ranch Sanitary Sewer, Western Interceptor - KDHE Loan Payment $2,574,135 Other WWTP Improvements and Repairs $275,000 CIP Projects $256,178 Blue Township Wastewater Service KDHE Loan Payment $49,292 Operating Expense Increases $45,035 Total Budget Increase - Wastewater Fund$3,199,640 30Enterprise Funds Wastewater Rates3131Enterprise Funds 2011 Rate Increases

Water 7%Wastewater 15%Storm Water 5%

25% Operating Expense ReserveSpringsted Recommendation: 25% Operating Expense Reserve plus one year debt service.

Water Tap FeesCost of new service installation $11152010 Charges, $540.2011 Charges, $7322012 Charges, $9242013 Charges, $1115

32322012 Budget ConsiderationsSeeking direction and consensus on2012 mill levy rateCitizen/Board/Committee CIP requests relative to other CIP recommendationsUtility budgets and proposed rate increasesAny other budgetary concerns

City Commission direction will be incorporated into future budget work sessions

2012 City Budget3333ReminderJune 28th - Third Budget Work Session on the 2012 City Budget plus Presentations by Outside Agencies

2012 City Budget3434