The proposed 2005 budget includes a 2% general wage adjustment for all full-time regular employees as well as the adoption of a new plan system. The new system is in response to recommendations made in a 2003 Compensation Study and involves the establishment of three pay plans: Fire/Medical, Police, and Primary (includes all personnel not in aforementioned public safety departments and all non-sworn personnel from public safety departments) . The employee health care plan and property insurance continued to be significant issues for the General Fund in planning for 2005. Employee contributions increased $10 per employee per pay period. The City’s share of employee health benefits will rise in 2005, from $6,475/employee to $6,980/employee. The impact to the General Fund is an increase in 2005 from $2,913,805 for employees and retiree coverage to $3,140,702, a $226,897 increase in 2005. Additional increases in property insurance are included in the 2005 budget due to insurance market changes since 9/11/01.
Non-tax fund revenues are anticipated to be relatively flat for the Library Fund, including interest income, state aid, and ongoing grant commitments. The Commission provided direction to increase the budget for the fund in 2005, utilizing the increased assessed property valuations and increasing the mill levy as avenues.
There is a slight decrease in the mill levy for 2005 for this fund. An increase in the mill levy was necessary in 2004, but not for 2005, due to relatively stable fare revenue (includes bus pass sales to KU students) and a higher than estimated balance forward from 2003.
This fund benefits from the increased assessed valuation and the recommended budget results in a decrease in the mill levy. Other revenue sources (costs for services and program, sales tax support) are anticipated to remain relatively flat for 2005. A recommended increase in pool fees (increase to child admission rate from $1.25 to $1.75 per child visit) will provide additional revenue for the aquatics programs.
Multi-year capital improvement plans have been submitted to the City Commission for the Water and Wastewater, Stormwater, Sales Tax Program, and non-enterprise capital projects. These plans are important tools for fiscal planning along with the debt policy approved in 2002 by the Commission. Maintenance of existing facilities is as important as expansion, and these plans reflect a number of projects related to restoring or replacing present facilities. The Bond and Interest mill levy remains stable, taking into consideration the increase in assessed property valuation, but is expected to rise in the next few years due to several City-at-large projects approved recently. Careful consideration of delaying some capital improvement projects with associated operating costs is recommended for 2005.