Memorandum
City of Lawrence
City Manager’s Office
|
DATE: |
6/13/13 |
|
TO: |
David L. Corliss, City Manager |
|
FROM: |
Casey Toomay, Budget Manager |
|
CC: |
Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager / City Clerk |
|
RE: |
2014 Budget Increases Over 2013 Budget |
As shown on the table below, the City Manager’s recommended 2014 general fund budget is likely to be 3.9%, or $2,753,368, more than the 2013 expenditure budget. The increase can largely be attributed to increases in wages and benefit costs as well as the transfer of increased sales tax proceeds out of the general fund. Smaller increases are also requested for contractual services, commodities, and capital outlay.
|
2012 |
2013 |
2014 |
$ |
% |
|
|
Personal Services |
$40,631,282 |
$41,835,724 |
$42,848,673 |
$1,012,948 |
2.4% |
|
Contractual Services |
9,611,764 |
10,718,409 |
11,060,108 |
341,699 |
3.2% |
|
Commodities |
3,917,998 |
4,401,452 |
4,436,645 |
35,193 |
0.8% |
|
Capital Outlay |
335,003 |
720,352 |
933,200 |
212,848 |
29.5% |
|
Misc. |
545 |
- |
- |
- |
|
|
Transfers Out |
12,735,641 |
12,835,784 |
13,986,464 |
1,150,680 |
9.0% |
|
Total |
$67,232,233 |
$70,511,721 |
$73,105,589 |
$2,753,368 |
3.9% |
* The numbers shown do not include the transfer budgeted to achieve a 5% fund balance per state law.
Changes from the 2013 budget in each expenditure category are highlighted below.
Personal Services. The 2013 budget includes an increase in wages and benefits of $872,948. The largest increase in this category is for the City’s contribution to employee retirement systems. Contributions to the Kansas Police & Fire Retirement System (KP&F) increased $450,575, or 12.6%, while contributions to the Kansas Public Employees Retirement System (KPERS) increased 9.5%, or $81,203.
Regular salaries are just $55,710 more in the 2014 budget despite general wage adjustment and merit increases for employees covered by memoranda of understanding (MOUS) and a merit pool for non-MOU covered employees equivalent to the MOU steps and competencies on a per FTE basis. Overtime will be higher due to the increase cost of salaries and benefits. A total increase of $414,908, or 38.5%, is included in the 2014 budget. Significant increases in public safety departments ($255,700 in the police department and $161,400 in the Fire Medical Department) are offset by decreases in other departments.
The total city contribution to employee healthcare in 2014 is the same as 2013, however, a change in the method used to allocate the City’s contribution to retiree healthcare across all funds has resulted in the City’s contribution from the general fund decreasing $7,049, or .02%.
Contractual Services. Overall, contractual services in the general operating fund for 2014 are anticipated to cost $341,699, or 3.2%, more than in 2013. One of the biggest drivers is services provided by Douglas County. The cost of the City’s share of emergency communications including the requested addition of four new positions is 16.1%, or $175,338, more than in the 2013 budget. The City’s share of Judicial Law Enforcement Center maintenance expenses are increasing 6.4%, or $4,136. The City’s share of the cost of the Community Service Supervisor is increasing 8.9%, or $2,622.
An increase of 7.1%, or $20,000 is included to pay for increased animal shelter costs at the Lawrence Humane Society.
Improvements to the City’s levee are being required by the Corp. of Engineers, resulting in an increase of $53,500.
The cost of insurance premiums (fidelity bonds, public officials, property, police professional, workers comp reinsurance, etc.) are expected to increase $46,945, or 17.8%, over 2013.
Some increases in contractual expenses, such as janitorial services and mowing, are offset with decreases in other expenditure categories.
Commodities. The 2014 baseline budget includes an increase of $35,193, or 0.8%, for commodities. This increase can be attributed to increases expenses in the police department budget, which includes $66,296, or 10.3%, more for commodities than in the 2013 budget. The biggest increase is for protective equipment, which is $20,340, or 203.4%, more than in the 2013 budget. An increase of $19,250 is included for uniforms, which is 55% more than in the 2013 budget. The price of ammunition continues to increase, resulting in an increase of $12,800, or 47.1%, over the 2013 budget. An increase of $10,411, or 33.4%, more is included for other operating supplies while an 87.5%, or $7,000, increase is included for CRT equipment.
Capital Outlay. The 2014 budget includes $212,848, or 29.5%, more for capital outlay than the 2013 budget. Most of this increase is in public works, which includes $135,100, or 208.2%, more than in the 2013 budget in order to address deferred vehicle and equipment replacement and for small capital improvements. In 2014, the increase will be used to fund the following:
· Replacement of two inspector trucks for the engineering division;
· Replacement of a plotter used for in-house design in the engineering division;
· Replacement of a plotter used to print signs in the traffic division;
· A Tool Cat used for snow removal, sweeping, trenching, etc. at the airport and Community Health Building;
· Replacement of the roof on one of the City’s salt domes;
· Increased funding for general improvements in the building maintenance division; and
· Matching funds for an environmental study at the airport.
The remainder of the increase is the police department budget, which includes 14.1%, or $77,748, more for vehicles and equipment than in the 2013 budget. Police vehicles in the 2014 general fund budget include ten police interceptors and one police sedan.
Transfers Out. Transfers out of the general fund included in the 2014 budget, are $1,150,680, or 9.0%, more than in the 2013 budget. Most of the transfers out are sales taxes proceeds, which pursuant to state law must be deposited into the general fund before being transferred out. Projected sales tax growth and an increase in the transfer to the Recreation Fund ($350,000) for operations of the Rock Chalk Park Recreation Center account for the increase.