Memorandum                    

City of Lawrence

City Manager’s Office

TO:	City Commission
FROM:	Diane Stoddard, Interim City Manager
DATE:	July 6, 2015
CC:	Casey Toomay, Assistant City Manager
RE:	Lawrence Community Shelter Request

In late May, the City received a letter from the Lawrence Community Shelter indicating that they were anticipating a deficit of $200,000 per year for 2015 and 2016.  It is presumed that this funding for the deficit would be split in some fashion between the City and Douglas County. 

The LCS requested funding through the City budget process for 2016 in the amount of $150,000.  The City provided $100,000 in 2015.  The recommended budget held currently-funded agencies flat, so the 2016 recommended budget includes $100,000 for this portion of their request.

The agency also requested funding through the City budget process for 2016 for special alcohol funds.  The request was for $184,500 in 2016.  The budget allocation for 2015 was $84,000.  The recommended budget for 2016 held the 2015 amount flat, so includes $84,000. 

Implications of Additional Funding:

There are several items to keep in mind related to the LCS request for additional funding. 

· The City has already fronted the agency the second half of its funding allocation for 2015.  That amount was distributed in June, though it typically is not distributed until October.

· Any additional allocation of funds for 2015 will need to come from cash balance, which is a concern because we already have a structural imbalance in the 2015 budget. 

· $100,000 in additional funding for 2016 would equate to an additional mill levy impact of 0.11 mills.  Additional resources would be required to add this funding to the budget, which is the reason for the associated mill levy impact calculation. 

· Another consideration is the City’s adopted mid-year funding policy.  This policy is located on page 227 of the recommended budget.  It states guidelines that indicate a funding request should- Fill an existing gap in City services, meets a City Commission or community goal. provides for a need in the community that is otherwise unmet, helps leverage outside funds.  The policy also states that when considering requests outside the budget process, the City Commission will consider the following:

§ Is the request a high enough priority to justify the allocation of contingency funds?

§ What are the long-range implications (annual request? related costs? etc.)