2004 Budget Presentation

1. 2004 Budget Presentation City Commission Budget Study Session July 2, 2003

2. Economic Development -- promote economic development of Lawrence to provide work and business opportunities Planned Growth -- encourage growth that protects our environment, neighborhoods, and culture Community Building -- expand efforts and markets Public Safety/Staffing -- create social capital and celebrate our heritage Neighborhood Planning -- improve the livability of all Lawrence neighborhoods Environment -- integrate the environment into our decisions as we work towards a sustainable city Transportation -- improving access to all citizens Downtown Development -- protect the integrity of downtown while maintaining it as a unique community resource City Services -- providing excellent City services consistent with resources City Commission Priorities

3. City of Lawrence 2004 Recommended Budget Summary • Total expenditures for the City of Lawrence’s annual operating budget is $110,912,701. • Based on an estimated assessed valuation of $674,353,182 for taxable property within the City limits, the proposed mill levy for this recommended budget is 28.987. This represents a 3.41 or 13% mill levy increase over the 2003 budget. • The 2004 recommended budget includes no general wage adjustment and a considerable increase in the employee’s cost for family health care coverage. • Services held at current levels with no added programs or improvements with the exception of a maintenance position at the Wastewater Treatment Plant.

4. 2004 Budget Fund Summary of Resources by Classification and Expenditures by Category

5. City of Lawrence Mill Levy History

7. Value of City of Lawrence Property Tax Dollars To figure monthly expense for city services: Market value of home = $120,000 City mill rate = 28.987 First, determine assessed valuation by multiplying the value of home by 11.5%: $120,000 x 11.5% = $13,800 Second, determine City property tax bill by multiplying assessed value by mill rate levied by the city: $13,800 x .028987 = $400.02 City Tax Liability = $400.02 Third, determine the monthly City property tax expenses for City service by dividing the city property tax liability by 12 months: $400.02/12 = $33.34 Monthly City Property Tax Expense = $33.34

8. Sales tax trend -- Assumption of flat growth of both local and county-wide sales tax State transfer payments -- LAVTR and state revenue sharing transfers were not included as revenue sources Assessed valuation -- Increase in assessed valuation to 7% over the previous year’s 6% increase Fee increases -- ( Increases in Utilities, Solid Waste, Cemetery, Golf Course, and Aquatic) -- Necessary to continue providing quality services and meeting regulations Fund balances -- General fund expenditures have exceeded revenue levels resulting in lowering of fund balance Interest on investments -- Interest rates and related earnings will continue to be less than in previous years 2004 Recommended BudgetRevenue Estimate Assumptions

10. City Sales Tax Revenue 1982-2002

11. City Sales Tax Revenue 1982-2002

12. General Fund Interest on Investments 1982-2002

13. General Fund Interest on Investments 1982-2002

14. State Revenue Sharing 1982-2002

15. State Revenue Sharing 1982-2002

16. Summary of General Operating Fund Resources

17. General Fund Projection 2002-2007

18. General Fund Projection--Expenditures 2002-2007

19. History of Fund Balances

20. Summary of “Moderate Expenditure Reduction” proposals by Department

21. Summary of “Significant Expenditure Reduction” proposals by Department • All General Fund Departments -- Eliminate programs such as weed inspection, public education in Police; recreation programs at parks facilities due to lack of maintenance; environmental inspections; neighborhood programs such as sidewalk gap, miscellaneous paving and repair; GIS reductions, eliminate e-gov initiatives -- Positions that become vacant in 2004 would not be filled -- Furloughs for employees -- Eliminate or reduce longevity payments to eligible employees -- Eliminate or reduce merit increases to eligible employees • Parks and Recreation -- Reduce maintenance level at City park facilities by a minimum of one level • Police -- Eliminate funding for elementary school crossing guards • Transit -- Route reductions that could result in a fiscal impact of $772,708 (6 options)

22. Summary of General Operating Fund Expenditures

23. Capital ImprovementBudget Summary City at Large 2004-2008

25. City at Large CIP Projects:General Fund Effects • Carnegie Library Building Renovation --City will continue to pay utility bills • Fire Station #5 Construction --12 new firefighters would be required for staffing in 2005 • Quint 1 --A joint ladder and pump truck will be needed upon the completion of fire station #5

26. Capital ImprovementBudget Summary City Share of County Wide Sales Tax 2004-2008

28. City Share of County Wide Sales Tax CIP Projects:General Fund Effects • Bike Trail & Facility Development • Entryway Improvements • Green Meadows Park • Peterson Park Improvements

29. Capital ImprovementBudget Summary Stormwater Utility 2004-2008

31. Capital ImprovementBudget Summary Wastewater Utility 2004-2008

33. Capital ImprovementBudget Summary Water Utility 2004-2008

35. Future Year Challenges…2005 • If Fire Station #5 is built in 2004, funding 12 firefighter positions and operational costs will equate to $600,000 • Compensation Plan recommendations • LPD Resource Plan recommendations • Capital Equipment Replacement (long term issues) • Transit issues—Fund balance is falling in 2005 • Higher Natural Gas Costs? • 2004 MOU discussions for 2005 • Funding of traffic unit and school officers when grants run out (+$500,000) • Kansas Legislature activity