1. Work Session Two 2011 City Budget ~ Manhattan ~ Kansas

2. 2011 City Budget  Declining ending cash balances  Minimal reserves  Increasing property tax requirements from some outside agencies  Increasing property tax requirements for the Bond & Interest Fund  Future rate increases across all enterprise funds 2011 budget challenges

3. A. Health Insurance (Information Requested)  Comparative data is not readily measureable given the differences that exist across each program.  Total premium cost of City’s self-insured program compares very favorably to that of other local and regional governmental entities.  Comparative data does not reflect the City’s aggressive, ongoing “wellness program” that is currently in place. 2011 City Budget

4. B. Delinquency Rates (Information Requested)  Property tax delinquency for the past five years has averaged 2%.  For two of the past three years, the City has not levied a delinquency rate in an effort to keep the property tax levy low.  Although the special assessment delinquency rate remains higher than in the past, a majority of the amount delinquent is collected within three years. 2011 City Budget

5. C. RCPD Revenue Analysis (Information Requested)  The City Finance Department does not have access to reserve status or other revenues collected by the Riley County Police Department.  Based on past history, the City applies some of the residual cash balance at the end of one fiscal year to help make up any shortfall in the following fiscal year.  Please note that the City transferred an additional $117,481 from the General Fund in 2008 to RCPD—the only year that a delinquency rate was not applied. 2011 City Budget

6. D. Bonding Options (Information Requested) Based on the City’s debt policy…  City debt will be amortized for the shortest period consistent with a fair allocation of costs to current and future beneficiaries or users.  The City normally shall issue bonds with an average life of 15 years or less for general obligation bonds and 20 years for revenue bonds and special assessment bonds.  To the extent possible, the City will design the repayment of its overall LTO issues so as to rapidly recapture its credit capacity for future use.  As one benchmark, the City shall strive to repay at least 20% of the principal amount of its general obligation bonds, within five years and at least 40% within ten years. 2011 City Budget

7. E. DMI Financing (Information Requested)  Two distinct benefit district projects: (1) Alleys and Mews at $678,141 and (2) Poyntz improvements at $1,656,897.  City-at-large would pay for 2/3 of the cost for both projects.  Based on a 20-year bond issue, the mill levy impact for the City would range from.183 mills to.322 mills. 2011 City Budget

8. F. Current/Future Debt (Information Requested)  Proposed 2011 mill levy increases by 3.696 mills.  Proposed mill levy rate continues to increase by about 3 mills through 2015.  Cash reserves for a debt fund are nominal at $1,000,000. Same reserves were budgeted at $2,521,847 in 1998.  Credit rating agencies continue to express concern over the City’s direct and overall debt burden which is expected to increase. This concern is somewhat mitigated by (1) reserve levels and (2) rapid rate of retiring debt. 2011 City Budget

9. G. STAR Revenue (Information Requested)  Additional 1% state sales tax effective this July will have a favorable impact on the STAR bond issue.  Additional revenues of over $2.5 million are expected and could retire the entire STAR bond issue seven years earlier than expected. 2011 City Budget

10. 2011 Proposed Property Tax Levies Projected Property Taxes for Outside AgenciesLeviesChange RCPD27.0251.463 Library4.2470.000 Library EBF0.9320.000 Riley County Health Department0.5760.045 32.7811.509 Property Taxes for City Services General Fund2.7210.000 Employee Benefit Fund1.4590.722 Fire Equipment Reserve0.1160.000 General Improvement0.000 Park Development0.000 KP&F0.174(0.173) Industrial Promotion0.000 Bond & Interest Fund5.7913.695 10.2614.244 Possible 2011 Mill levy 43.041 Estimated increase over 2010 Mill Levy 5.752

11. 2011 City Budget Historical Property Tax Levies ----- Property Taxes ----- MillTaxes As a Percent YearLevyLevied of ValuationPer Capita 201037.28916,102,7223.73%$298 200934.26814,734,6753.43%$276 200831.68313,110,8733.17%$249 200733.08912,157,6343.31%$235 200636.23511,648,9703.62%$232 200540.83212,053,0134.08%$244 200443.54011,799,2974.35%$252 200344.38810,725,7924.44%$240

12. 2011 City Budget 2011 Budget Summary (Proposed)Percent 20072008200920102011 Change General Fund$ 19,407,122$ 20,801,075$ 22,130,617$ 23,122,213$ 23,244,1800.53% Total of All Special Revenue Funds 30,497,45136,172,81341,053,86041,542,42242,057,1391.24% Total of All Enterprise Funds 19,437,07320,030,58620,254,82221,008,90522,175,5005.55% Bond & Interest Fund10,642,55712,106,65811,955,56713,484,91017,724,02331.44% Total City Budget:$ 79,984,203$ 89,111,132$ 95,394,866$ 99,158,450$ 105,200,8426.09%

13. Expenditures Property TaxesMills Special Assessments $ 6,445,436 $ 322,2720.746 Miscellaneous Expenses & Cash Reserves 1,106,662 2.563 Approved Capital Projects (Not Yet Bonded) 1,066,700 -0.000 Approved CIP Started (Not Yet Bonded) 469,013 1.086 Downtown Redevelopment 287,535 94,3140.218 Proposed CIP 136,123 113,9900.264 Current Debt 5,215,837 394,6740.914 $ 14,727,306 $ 2,500,9255.791 Status of Bond & Interest Fund Debt Current Bond & Interest mill levy = 2.096

14. 2011 City Budget  Need to finalize decisions on…  Citizens CIP requests, especially DMI  Any other budgetary concerns  The following will be incorporated into future plans…  Fire station expansion  aTa funding for the future 2011 Budget Considerations

15. 2011 City Budget June 22nd Third Budget Work Session on the 2011 City Budget and Presentations by Outside Agencies Reminder…