2012 City Budget ~ Manhattan ~ Kansas Work Session Two
Slide 2
2012 City Budget 2012 Budget Challenges Declining ending cash
balances Minimal reserves Ongoing maintenance and staffing of
several new City facilities Increasing property tax requirements
from some outside agencies Increasing property tax requirements for
the Bond & Interest Fund Future rate increases across all
enterprise funds 2
Slide 3
2012 Budget Summary (Proposed)Percent 20082009201020112012
Change General Fund$ 20,801,075$ 22,130,617$ 23,122,213$
23,253,312$ 24,813,5996.7% Total of All Special Revenue Funds
36,172,81341,053,86041,542,42241,961,20140,699,206(3.0%) Total of
All Enterprise Funds
20,030,58620,254,82221,008,90522,175,50028,067,13026.6% Bond &
Interest
Fund12,106,65811,955,56713,484,91017,655,52520,391,99215.5% Total
City Budget:$ 89,111,132$ 95,394,866$ 99,158,450$ 105,045,538$
113,971,9278.5% 2012 City Budget 3
Slide 4
2012 Property Tax Levies Projected Property Taxes for Outside
AgenciesLeviesChange RCPD27.149.0850 Library4.3310.156 Library
EBF0.911(0.005) Riley County Health Department0.6470.035
33.0391.037 Property Taxes for City Services General Fund3.1540.462
Employee Benefit Fund1.5660.127 Fire Equipment Reserve0.1130.000
General Improvement0.000 Park Development0.000(0.002)
KP&F0.169(0.003) Industrial Promotion0.000 Bond & Interest
Fund5.5290.032 10.5310.616 Possible 2012 Mill levy 43.570 Estimated
increase over 2011 Mill Levy1.653 4
Slide 5
Issues from First Work Session 5
Slide 6
A. 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 Budget 6
Slide 7
Total revenue applied to 2010 Debt Payment - $ 1,801,770 Total
debt service payments in 2010 - $995,469 Excess revenue - $ 806,301
Trustee Fee = $5,000 25% to the Special Redemption Fund = $200,325
32% to the City of Manhattan = $258,299 43% to Dial Realty =
$342,676 2011 projections indicate revenue exceeding expenses by
25%. 2012 City Budget B. Analysis of TIF Revenues (Information
Requested) 7
Slide 8
Majority 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 Budget C. Discovery Center Operations
(Information Requested) 8
Discovery 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 Budget D. Other Museum Visitation
Statistics (Information Requested) 10
Slide 11
City 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 Budget
E. Effects on Bond Ratings (Information Requested) 11
Slide 12
For 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 Budget F. Citizen/Board/Committee CIP Requests (Information
Requested) 12
Slide 13
2012 CIP Overview 2011 CIP2012 CIP Increase/ (Decrease)
Equipment1,950,0002,403,831453,831
Projects*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)
13
Slide 14
2012 CIP Overview Major Improvements. Total Project Cost 2012
Budget ImpactFunding Source Levee Design &
Construction2,150,000---G.O. Bond Supported by Stormwater Fees
Reconfigure & Expand Airport Short-Term Parking Lot
1,565,000---G.O. Bond Supported by Parking Fees Hartford Road
System Phase 21,400,000---G.O. Bond Supported by Stormwater Fees
Consolidated Rental Car Facility1,200,000---G.O. Bond Supported by
CFCs Ft. Riley Main Upsizing SCS 25686,000---G.O. Bond Supported by
Wastewater Fees New Traffic Maintenance Facility650,000 CIP Reserve
Fund 14
Slide 15
2012 City Budget Traffic Operation Building 2012 Programmed
Project Road Map to Starting Construction RFP 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 scope Municipal zoning documents to planning board and city
commission for public comment Rezoning of Property Development of
final plans for construction Submittal of Plans to Code Department
Start construction of the new facility. 15
Slide 16
2012 City Budget Traffic Operation Building .cont. Restrictive
Agreement with Kansas Department of Health and Environment to
Limitations of the Property Property 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 basements No
water wells Footings kept 5 feet or less depth, no basements, slab
foundation design is acceptable. 16
Slide 17
Enterprise Funds Stormwater Fund Water Fund Wastewater Fund
17
Slide 18
Enterprise Funds - Stormwater Past 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 Budget 18
Slide 19
Enterprise Funds - Stormwater Stormwater Infrastructure 10-year
CIP Investment History Project (Total Cost Includes Grants and
Other Sources)City Share Allen 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 19
2012 CIP Projects Pending Stormwater Projects Levee
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 Budget 22
Slide 23
2013 & Beyond CIP Projects Backlog of Stormwater Projects
Tecumseh-Quivera System ~ Design 90% Completed CiCo Tributary ~
Study Phase Started Allen Road System South 14 th Street System
Bluemont Avenue System Bertrand Street System South Manhattan
Avenue System Kimball and Seaton Ave System Casement Road
Reinforced Box And many more projects identified from 1995 SWMMP,
plus the Northview Drainage Study and the East Side Drainage Study
2012 City Budget 23
Slide 24
Enterprise Funds - Water Water 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 24
Slide 25
Enterprise Funds Water Sewer Lining and Manhole Rehabilitation
25