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2013 Budget in Brief 2013 Budget In Brief The City’s total budget for 2013 is over $106 million. Resources for the budget are from carryover from the previous year, revenues, and internal transactions. Fund use for 2013 results from expenditures, internal transactions, and planned carry- over to the next year. Class of Revenue 2013 Budget User Fees $34,780,000 Sales Taxes $17,246,000 Property Taxes $11,800,000 Other Taxes $ 5,715,000 Intergovernmental Revenue $ 2,837,000 Other Revenues $ 217,000 Total Revenues $72,595,000 Internal Transactions $12,906,000 Net Total Current Resources $85,501,000 Fund Balance Used $ 5,086,000 Less Total Expenditures $90,587,000 Resources and Uses Summary 2013 Budget Resources : Carryover from 2012 $ 20,727,000 2013 Revenues $ 72,595,000 Internal Transactions $ 12,906,000 Total Resources $106,227,000 Uses: 2013 Expenditures $ 77,681,000 Internal Transactions $ 12,906,000 Planned Carryover to 2014 $ 15,639,000 Total Uses $106,227,000 RESOURCES The City of Salina has six major groups of revenues. The largest of these are user fees and charges, accounting for more than $34 million, or 48% of total revenues. Approxi- mately half of the fees and charges ($17.1 mil- lion) are generated by the water and sewer utilities. These revenues must be used for wa- ter and sewer purposes. The rate schedule for both water and waste- water was increased to provide adequate revenue to support capital and operational needs. Other significant sources of revenue include municipal court fines, fees for EMS services, refuse collection, solid waste disposal, build- ing permits, and recreational programs. Internal transactions are used to allocate costs for the City’s self-funded health in- surance plan, centralized fleet mainte- nance services, worker’s compensation, and other internal services. The City has 465 full-time employees, along with 14 part-time positions. In addi- tion, a significant number (about 200) of temporary-seasonal staff are employed, primarily through the spring and summer months. They assist with facility care and recreational programs. The next largest group is on taxes collected. There are three tax types: sales, property and other taxes which contribute roughly $17.25 million to the City operation. This is 23% of total revenues, and is based on both the City .9 cent tax, and the city’s portion of the 1 cent county sales tax. Property taxes (including both real estate and motor vehicle) contribute only about $11.8 million, or 16% of total revenues. Real estate taxes are calculated by applying a mill levy to the assessed value of property. In Salina, the mill levy for 2013 was established at 26.19 mills, a decrease of .08 mills. The following table calculates the amount of property taxes for homes with different market values. The “other taxes” designation includes franchise fees, (a charge to a private utility for the use of public right-of-way), and the transient guest tax of 6.4% (tax levied against hotel and motel room rentals). Other taxes are only 7.4% of the total revenue and produce about $5.7 million per year. Intergovernmental revenues include grants and other payments from other governmental agencies. Intergovernmental revenues produce about $2.8 million. The largest single source is the Special Gas Tax received from the State of Kansas ($1.37 million) which must be used to repair and maintain streets. The City of Salina also receives a contribu- tion from Saline County to supplement the county-wide EMS service that is operated by the City. Fair Market Value Assessed (Taxable) Value @ 11.5% 2012 Property Tax @ 26.19 mills $ 50,000 $ 5,750 $150.59 $ 75,000 $ 8,625 $225.89 $100,000 $11,500 $301.19 $125,000 $14,375 $376.48 $150,000 $17,250 $451.78 How “City” Property Taxes Are Calculated for Residential Properties $200,000 $23,000 $602.37 EXPENDITURES By Class of Expense Class of expense refers to what kind of goods and services will be purchased. The City identifies several classifications, in- cluding salaries, benefits, supplies, ser- vices, capital outlay, debt services and other. Personnel expense (salaries and benefits) are by far the largest component of City’s expenses, accounting for $33 million, or 43.1% of the total budget. Services is the next largest class of expense, at 23.7%. Class of Expenditures 2013 Budget Salaries $24,427,000 = 31% Services $18,468,000 = 24% Benefits $ 9,099,000 = 12% Debt Services $10,940,000 = 14% Capital Outlay $ 8,066,000 = 10% Supplies $ 6,154,000 = 8% Other $ 527,000 = 1% Total $77,681,000 Plus internal transactions $12,906,000 Net Total Expenditures $90,587,000 Reserves $15,639,000 Total $106,227,000 Benefits 12% Services 24% Other 1% Salaries 31%Debt Service 14% Capital 10% Supplies 8% Debt Service is the scheduled repayment on debt issued previ- ously by the City for construc- tion of various major projects. The amount budgeted for 2013 is $10.9 million or 14.1% of the total budget. Capital Outlay This includes all cash capital item acquisition for all activi- ties, including vehicles, equip- ment, buildings and major building repair, as well as infra- structure (streets, water and sewer lines, etc.) construction and replacement. Expenses are projected to total about $8.1 million or 10.4% of the budget in 2013. General Govt. 3% Public Safety 21% Public Works 8% Culture and Recreation 8% Community Development 5% Health and Sanitation 11% Water and Wastewater 21% Other 23% By Function Expenditures by function describes the general purpose for which funds are budgeted. Each function includes several more specific activities. Capital outlay expense is not in- cluded within the functions, but is totaled as a separate category. General Government includes the administra- tive functions of the City, including the ex- penses associated with the City Commission, City Manager, Finance, and Human Re- sources Departments, as well as legal counsel services. Expenses for General Government total about $2.3 million, and are about 3% of the total budget. Public Safety activities include the police, courts, fire and emergency services activities. Total expense is $18.8 million or 21% of the total budget. Public Works includes the activities of build- ing, maintaining, and supporting the physical infrastructure of the city (excluding utilities). This includes Engineering, Street, Traffic Control, Flood Control, and Building Mainte- nance. The Public Works budget is about $7.5 million or 8% of the total. Health and Sanitation are the activities de- signed to insure and support the long term health and welfare of our citizens. Included is the City’s portion of the City-County Health Department and Animal Shelter, Cemetery, Solid Waste Landfill, and Refuse collection. Expenses planned for these activities total $9.9 million and account for 11% of the total. Function 2013 Budget General Government $ 2,266,000 = 3% Public Safety $ 18,760,000 = 21% Health & Sanitation $ 9,912,000 = 11% Culture & Recreation $ 6,956,000 = 8% Community Development $ 4,431,000 = 5% Water and Wastewater $ 20,099,000 = 21% Other* (Net of reserves) $ 20,667,000 = 23% Public Works $ 7,496,000 = 8% Total Planned Expenditure $ 90,587,000 = 100% Less Internal Transactions $ 12,906,000 Net external expenditures $ 77,681,000 Reserves $ 15,639,000 Culture and Recreation includes all of the recreational programs offered, as well as Bicen- tennial Center support, the Smoky Hill Museum, and the Arts and Humanities Depart- ment. These expenditures will total about $7.0 million or 8% of the total budget. Community Development is all activities designed to foster community growth as well as economic and social well-being. This encompasses a wide range of activities, including development services, human relations, fair housing, economic development, tourism de- velopment, as well as support for a number of community based agencies. These activities consist of 5% of the annual budget, or $4.4 million. Water and Wastewater provides clean, healthy water for the community and for the treatment and disposal of wastewater, including billing and administrative services. The budget for 2013 is $20.1 million or 21% of the total. Other is composed of internal services, including the City’s Central Garage and Com- puter Technology departments. It also includes the portion of the self-funded health in- surance program provided to our ancillary agencies. Other also includes Debt Services and Capital Outlays that are not classified in functional classes. The budget for 2013 is $20 million or 23% of the total. Capital Improvements Program Each year, in addition to the annual operating budget, the City plans for future major projects, typically to be financed through the sale of long term bonds or various grants that may be available. Projects currently scheduled include: Capital Project Schedule For Completion in 2013 Cost Initiated in 2013: Waterline Improvements $ 4,000,000 Wastewater Plant Preliminary Design $ 810,000 Wayfinding $ 200,000 Levy Improvements $ 375,000 Hike Bike Trail $ 25,000 Bicentennial Center Improve- ments $ 8,700,000 Gateway Signage $ 75,000 Cloud and Ninth Intersection $ 650,000 Downtown Lighting $ 3,200,000