Memorandum
City of Lawrence
City Manager’s Office
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TO: |
City Commission |
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FROM: |
Diane Stoddard, Interim City Manager |
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DATE: |
July 13, 2015 |
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CC:
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Casey Toomay, Assistant City Manager Budget Team |
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RE: |
Proposed Changes to 2016 Recommended Budget Based on City Commission Direction at July 7, 2015 Study Session |
At the July 7, 2015 City Commission Study Session on the 2016 Recommended Budget, the City Commission directed staff to look at changes to the 2016 Recommended Budget that would result in no mill levy increase for 2016. Staff has put together a plan that would result in a flat mill levy increase for 2016.
General Fund:
Below is a listing of proposed changes to the 2016 Recommended Budget at the associated impact to the General Fund:
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General Fund Adjustments to Recommended 2016 Budget |
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Revenues |
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Property Tax- Adjustment to Property Taxes to keep mill levy flat |
$ (920,600) |
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Licenses and Permits - adjusted revenue estimate for rental licensing program |
$ 250,000 |
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Subtotal Change to Revenues |
$ (670,600) |
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Expenditures |
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Planning - removed small planning studies |
$ (25,000) |
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Overhead |
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moved WRAP to special alcohol fund |
$ (350,000) |
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adjusted unemployment rate |
$ (80,000) |
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Information Technology- removed GIS Technician |
$ (61,100) |
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Municipal Court- moved position from municipal court to parking fund |
$ (44,230) |
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Police |
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· return school resource officers from special alcohol fund |
$ 297,085 |
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· removed some of increase to overtime costs |
$ (188,850) |
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Fire - remove furniture |
$ (4,000) |
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Public Works- remove additional salt |
$ (86,000) |
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Subtotal Change to Expenditures |
$ (542,095) |
The chart below compares the Recommended 2016 Budgeted Revenues and Expenditures to the Revised Revenues and Expenditures as a result of the above noted adjustments.
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Recommended Revenue |
$ 79,523,220 |
Revised Revenue |
$ 78,852,176 |
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Recommended Expenditures |
$ 80,331,638 |
Revised Expenditures |
$ 79,789,893 |
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Revenue over Expenditures |
$ (808,418) |
Revenue over Expenditures |
$ (937,717) |
The City Commission may recall that the recommended budget included proposed expenditures that exceeded projected revenues by approximately $809,000. The adjusted budgeted expenditures would exceed adjusted projected revenues by approximately $937,717. Staff believes that this is manageable based on our prior ability to manage actual expenditures to available revenues over the course of the year.
Guest Tax Fund:
Based on City Commission direction to relook at expenditures that could be allocated to the Guest Tax Fund, staff allocated $150,000 in debt service (approximately 10% of debt service) related to Sports Pavilion Lawrence to the Guest Tax Fund from the Countywide Sales Tax Reserve Fund. Staff does not recommend further increases in Guest Tax Fund expenditures given the prior adjustments to expenditures in this fund.