Memorandum

City of Lawrence

 

TO:

 

Mayor and City Commissioners

FROM:

David L. Corliss,  Interim City Manager              

                            

CC:

Debbie Van Saun, Assistant City Manager

Date:

July 3, 2006

RE:

City – County Funding Relationships for Certain Joint Departments and Programs

 

The Lawrence and Douglas County community are fortunate to have a strong history of cooperation and partnership in production of a number of municipal services. I am recommending that we continue this strong history with a reexamination of the agreements and funding relationships which exist for our shared programs and departments and look for additional opportunities to cooperate in the future.

 

Background and History

 

Emergency Communications

 

In 1994, the City and the County agreed to combine their emergency communications services with the costs of the combined operations to be shared as follows:  City (66%) and County (34%).  This agreement was modified in 1997 following the combination of the County emergency medical services and the City fire department in 1996 discussed below.

 

Emergency Medical Services

 

In 1996, the County emergency medical services and the City fire department were combined with the City paying 74.36% and the County paying 25.64% of the operating costs of the combined operations.  The County pays all the cost of buildings and equipment of the ambulance service and the City pays all the cost of buildings and equipment of the fire department except as provided for in the construction of Fire Station #5 discussed below.  As of the effective date of the 1996 agreement all buildings, equipment, and furniture were to be transferred to the ownership of the City.  This agreement was later modified in 1997, 1998, and 2005.  In 2004, the County agreed to pay 25.64% of the costs of construction of Fire Station #5 to be built by the City. 

 

Health Department

 

In 1996, the City and the County agreed to share equally in the cost of construction of a health facility to house the Lawrence-Douglas County Health Department, the Bert Nash Community Mental Health Center and the Douglas County Visiting Nurses Association.  The agreement provided that on completion the building, equipment, and furniture would be owned by the City.  This health facility was completed and occupied in 1997.  A related agreement provides for the City and the County to pay half of the health facility maintenance and operating expenses.  Additionally, the City pays 40% and the County pays 60% of the operating expenses of the Health Department.

 

Planning Department

 

Douglas County pays 1/6th of the cost of the City’s planning department.  A review of the costs paid previously indicates that the City has failed to charge the full cost of the personnel in the department (no health insurance was allocated to the County’s contribution) which will be altered in the 2007 budget allocation.

 

Analysis and Policy Options

 

An important policy consideration is the appropriate level of funding from the City and County for the above services.  Because all City of Lawrence property owners are also property owners within Douglas County, City of Lawrence property taxpayers will be charged both as a County property owner and a City property owner in situations where both the City and the County pay for the production of a particular service.  For certain services, this may be appropriate; for other services there should be concern about taxpayer and service burdens.

 

Policy questions and considerations are abundant in this area:   Do Lawrence property owners receive a special service which requires them to pay 40% of the cost of the Health Department and 66% of the emergency communications center; while also paying as a County resident?   Should Lawrence be the only city within Douglas County which funds these services within the County?  Should the County’s contribution to the Planning Department be based on demands required for planning services for the unincorporated area (inside or outside of the urban growth area)?   As Douglas County urbanizes it is appropriate to plan for the funding relationships and the governance relationships of these services.

 

The attached chart provides experiences for similar services provided in other urban cities and counties within Kansas.

 

If we embark on these discussions it is important to note the substantial service that all of these departments and programs provide to both the Lawrence and Douglas County community.  Our review of these funding relationships is meant to plan for appropriate cost-sharing as Lawrence and the rest of Douglas County grows and to seek cost equity for these services among all taxpayers.