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1993 Budget in Brief CITY OF SALINA , BUDGET IN BRIEF 1993 CITY OF SALINA CITY COMMISSION CAROL E. BEGGS MAYOR PETER BRUNGARDT VICE-MAYOR JOHN DIVINE COMMISSIONER STEVE RYAN COMMISSIONER JOE WARNER COMMISSIONER DENNIS M. KISSINGER CITY MANAGER TABLE OF CONTENTS PAGE I. INTRODUCTION 1 II. OPERA TING EXPENDITURES 2-7 III. CAPITAL IMPROVEMENTS 8 IV. DEBT SERVICE 9 V. ANTICIPATED REVENUES 10-11 Budget in Brief 1993 TOTAL BUDGET $31,604,795 100% I r I I OPERATING CAPITAL DEBT BUDGET BUDGET SERVICE $23,786,650 $2,379,145 $ 5,439,000 75.26% 7.53% 17.21% I I I I I I [ I 1 r TAX SUPPORTED ENTERPRISE ALL OTHER TAX SUPPORTED ENTERPRISE ALL OTHER ENTERPRISE TAX SUPPORTED FUNDS FUNDS FUNDS FUNDS FUNDS FUNDS REVENUE BONDS FUNDS $13,965,200 $6,705,621 $3,115,829 $483,745 $1,038,700 $856,700 $2,437,810 $3,001,190 44.18% 21.22% 9.86% 1.53% 3.29% 2.71% 7.71% 9.50% 1993 City of Salina Budget The total approved City of Salina budget for 1993 anticipates expenditures of $31,604,795. The budget is comprised of an operating budget of $23,786,650, a capital budget of $2,379, 145 and a debt service budget of $5,439,000. The operating budget funds the general operation of City programs such as police, fire, streets, parks and recreation through the General Fund. The General Fund is financed primarily by the property, sales, vehicle and franchise taxes and various fees. Enterprise funds are also funded in the operating budget. Enterprise funds are expected to be self-sufficient, relying on charges for service. They comprise over 21 percent of the total city budget. The four enterprise funds which the City of Salina operates, are Sanitation, Solid Waste, Municipal Golf Course, and Water and Sewerage. Retirement of the City's outstanding debt is also a component of the 1993 budget. This debt is made up of municipal bonds, issued to pay for major capital improvement projects. This year, 17.21 percent of the budget will go into paying debt service. An General Obligation debt is scheduled to be retired within ten years. An Revenue bonds for the Enterprise funds are scheduled to be retired within 20 years. The capital budget provides funds for the construction of major City facilities and infrastructure by cash when municipal bonds are not used, and for the replacement of vehicles and equipment. This budget represents 7.53 percent of the total City budget for 1993. His financed through fees, general taxes, gasoline taxes and other budgeted revenues. . I I 2 Operating Budget Expenditures Tax Supported Funds - $13,965,200 Public Safety $6,737,397 The City of Salina will spend 38.6 percent of the anticipated expenditures in the tax funds to support Public Safety. Covered under Public Safety is: Police, Municipal Court, Fire, Parking Control, Permits and Inspection, and Street üghting. The city will add two new police officers. One officer is charged with running the D.A.R.E. Program. The other works fun-time in drug enforcement Funding for these two positions will be provided through Justice Department grants. The Municipal Court budget has included a contingency account set aside to implement a court reorganization plan. Increased case loads brought about by new laws and other law enforcement activities have stressed the court's resources and abilities to function in the most efficient and effective manner. Public Works $1,365,670 The City of Salina will allocate 7.8 percent of the anticipated expenditures in the tax funds to support Public Works. The tax-supported divisions of Public Works include: Engineering and Streets. The Street Division is the largest of the several divisions within the Department of General Services. It is responsible for street cleaning and maintenance, including repair of utility cuts. Streets, bridges and stonn sewers are costly to repair. The cost of maintaining and protecting these facilities has become increasingly burdensome; however, neglect results in far greater costs when replacement or major repair becomes necessary. The first concern of the Street Department in the winter months is clearing the snow and ice from the arterial and collector streets for ambulances, police and fire vehicles so each can reach all areas of the community. Parks and Recreation $1,567,388 The Recreation Division came under City administration on October 1, 1988. Prior to that time, public recreation programs were provided by the Salina Recreation Commission, the tax base being the V.S.D. #305. The Recreation Division is responsible for providing a year-round diversified recreation program for all citizens of Salina, including participation programs, community services and special events. An example of programs include senior citizens, special populations, athletics, instructional, arts and nature center. Most adult recreation programs are fully self-supporting from fees. Youth and general programs are partially self-supporting. 3 The Parks Division is responsible for the maintenance of all park grounds and landscaping, including parkways and landscape median strips. The Parks Division also operates and maintains all buildings and facilities related to the parks. The City presently owns 21 parks totaling 620 acres. General Government $1,605,858 Covered under General Government is: City Commission, City Manager, Legal, Finance, Personnel, General Improvements, Human Relations and 1993 Salary Reserve. The City Commission portion includes the City's share of funding the Health Department, Animal Shelter, Chamber of Commerce and other agencies or organizations. The Finance Department provides the proper planning, accounting and control of all fiscal matters. Accounts Payable, Accounts Receivable, investments, contracts, payroll, purchasing, temporary and long-tenn fmancing are processed by the Finance Department. Cult~ral $323,778 The Arts and Humanities Commission promotes and encourages public programs to further the public awareness of and interest in the artistic and cultural development of the City. It also serves in an advisory capacity to the City Commission, City Manager and Director of Arts in matters of public cultural policy. The Smoky Hill Museum is a division of the Arts and Humanities Department. Community Development $126,805 This Division provides planning and enforcement services related to various aspects of community development. The planning function provides staff support to the Salina Planning Commission, Heritage Commission and the Board of Zoning Appeals. The goal is to help these bodies and the City Commission guide the growth and development of the City in order to assure a more orderly and attractive community. Health and Welfare -Cemetery $79,504 This activity provides for the care, maintenance and operation of Gypsum Hill Cemetery, situated at Marymount Road and Glen Avenue. The cemetery contains 47 acres and more than 15,000 graves at the present ti me. Based on present use, space is expected to be available for at least another 25 to 30 years. Other $2,158,800 This covers Employee Benefits, Utilities, KSU- Salina, Contingency, ADA Compliance and certain medical exams. The Contingency is a portion set aside to offset any unforeseen condition which may arise in the operations perfonned by the local City government. One-hundred thousand dollars is allocated for such unexpected costs or revenue shortfalls. . Total Operating Budget Expenditures 4 Tax Supported Funds General Government: City Commission (Including $404,000 for outside agencies) $ 500,300 City Manager 183,708 Legal 85,800 Finance 287,242 Personnel 87,241 General Improvements 218,300 Human Relations 102,377 1993 Salary Reserve 140.890 $1,605,858 11.5% Public Safety Police $2,495,376 Municipal Court 178,686 Parking Control 34,916 Fire 2,707,168 Benefit Funds - Police and Fire 1,177,600 Pennits and Inspection 143.651 6,737,397 48.2% Public Works Engineering $ 171,818 Street Lighting 250,000 Street 716,274 Traffic Control 138,448 Flood Warks 89.130 1,365,670 9.8% Recreation Parks $ 643,128 Neighborhood Centers 61,884 Swimming Pools 64,800 Recreation 797.576 1,567,388 11.2% Cultural Arts and Humanities $ 155,932 Smoky Hill Museum 167.846 323,778 2.3% Community Development Planning $ 117,555 Heritage Commission 9.250 126,805 0.9% Health and Welfare Cemetery $ 79.504 79,504 0.6% Other Employee Benefits $ 1,018,300 Utilities 478,000 KSU -Salina 500,000 Contingency 100,000 ADA Compliance 60,000 Medical Exams 2.500 2.158.800 15.5 % TOTAL $13,965,200 100.0% 5 Operating Budgèt Enterprise Funds - $6,705,621 Enterprise funds in the city are those funds whose quasi-business operations are supported entirely by charges for services. The City operates four enterprise funds. Sanitation $753,824 This division of the General Services Department is responsible for the efficient, systematic collection and disposal of garbage, trash and similar waste materials originating from residential sanitation customers. This division is self-supporting from fees paid by users of the service. No property tax monies are devoted to this activity. Basic Monthly Rates will increase from $5.40 to $5.90 in 1993 due to landfill cost increases. Solid Waste $601,660 The City-owned and City-operated landfill, located southwest of Salina on Burma Road, provides solid waste disposal facilities for all Saline County. The Service is solely financed from gate fees collected from users of the landfill. No tax monies are devoted to this activity. Federal and state environmental mandates and laws led to a doubling oflandfill tipping fees for 1993, though Salina's rates remain some of the lowest in Kansas. Golf Course $467,009 The Salina Municipal Golf Course, opened in 1970, is located on 137 acres ofland. Itis a modern, well maintained 18-hole golf course. Approximately 50,000 rounds of golf are played each year. The amount of expenditures is directly related to the revenue generated from the play at the course. This budget provides for a realistic level of expenditures based upon the expected level of play; however, if the level of play is below expectations, the expenditures will be adjusted accordingly. Water and Sewer $4,883,128 The Water and Wastewater Department is a combined municipal utility responsible for operating the City's water and sewer systems. The Water and Wastewater Department is self-supporting from user charges collected from its customers. No tax monies are diverted to the utility. The Department makes a $240,000 payment in lieu of franchise taxes to the General Fund. . ; I 6 Operating Budget Expenditures All Other Funds - $3,115,829 Business Improvement District #1 $58,000 The BID encompasses substantially all of the City central business district with most of its funding provided by those within the district. In 1985, the BID initiated a major physical rehabilitation project. Now completeq, the BID concentrates on maintaining the physical improvements and promoting downtown economic development. Tourism and Convention $270,000 A five percent transient guest tax is levied upon the gross receipts derived from motel/hotel sleeping accommodations. The revenue is for the promotion of conventions and tourism in Salina. By written contract with the City of Salina, the Salina Area Chamber of Commerce operates the Convention and Tourism Bureau with 60 percent of guest tax revenues ($270,000). An additional $180,000 goes to Bicentennial Center convention marketing and facilities improvements. Special Alcohol $94,805 The 1982 State Legislature made substantial changes in this fund with 25 percent of all taxes on alcohol sales collected in Salina to remain with state government to assist in enforcement activities. Of the remaining 75 percent collected, one-third, or $94,805 goes to the Special Alcohol Fund. The City of Salina enters into contracts with local social agencies to finance programs and services related to activities under this program. Special Gas $254,005 In 1983, the State Legislature provided for a two cent per gallon increase in the gas tax starting July 1, 1983, followed by an additional one cent increase in January 1, 1984. The first two cents is dedicated to the special City and County highway fund. Other increases in the gas tax since then have been divided with 65 percent going to the state and 35 percent going to the City-County fund. Revenues derived from this source are used in street . maintenance, such as asphalt overlay and slurry sealing, concrete and asphalt repair work and for the purchase of traffic control devices. 7 Bicentennial Center $813,549 The mission of the BiCenter is to provide a regional hospitality center for events that will stimulate the Salina economy and enhance the quality of life for the community and the region. It has become well established as a multi-purposè building serving a wide range of functions on a local, state, regional and national level. The majority of the Bicentennial Center operating budget is supported through user fees, with a portion of transient guest tax monies also going to the facility. Risk Management $401,970 In addition to providing centralized accounting for the City's insurance and risk manage- ment expenses, this fund also permits efficient and proper management of the City's risks. Risk management entails not only insurance but also efforts to minimize the potential exposure of the City, its employees, its patrons and general public to various conditions and situations which could result in potential damage to persons or property. Workers Compensation Reserve $262,000 A resolution adopted by the City Commission on March 25,1991, created a reserve fund to permit the City to be approved by the State of Kansas as a self-insurer under the Workers Compensation Act beginning May 1, 1991. This year, 1993, will be the second full year for the City to participate in the program. The reserve fund is the amount ordinarily budgeted for conventional workers compensation insurance. This fund will be allowed to build over the years to eventually make the City self-reliant in all phases of workers compensation, providing savings to the taxpayers. Central Garage $750,080 The Central Garage account is a "housekeeping" or internal service fund. All of the City's motorized and vehicular equipment, except the Fire Department's equipment, is main- ~tained by the Central Garage. This includes repair work, gasoline, oil, tires and service. The various departments are charged through this fund for the service preformed at the Central Garage or specialized service done by contract. Data Processing $211,420 The data processing unit is a shared City/County data processing function. The Data Processing Division provides system management, user support, programming and training service to all the various departments at the City of Salina, Saline County and the District Court. The Division uses an IBM AS/400 Computer with attached devices consisting of 118 data entry terminals, 48 printers and 13 personal computers connected through terminal emulation. . I I 8 1993 Capital Budget - Use of Funds The capital budget provides cash funding for streets, public buildings, major equipment, land and other capital assets which are of significant value. Major projects in the City's Capital Improvement Plan, such as the Crawford Street Project, are financed through municipal bonds with the annual bond payments included in the Debt Service budget. In addition to projects funded by bonds or in progress, the 1993 budget provides $2,379,145 in improvements using City funds. A copy of the city of Salina five-year Capital Improvement Plan, including bonded and non-bonded projects, is available on request. Major 1993 projects include: Vehicle and equipment replacements Railroad crossing replacement Mulberry Bridge renovation Street resurfacing/rehabilitation and various curb and gutter replacements Sidewalk improvements Public building repairs Mausoleum renovation Bicentennial Center arena roof replacement Water and Sewer System Improvements 1993 Capital Budget Source of Funds The capital budget is largely financed through fees, gasoline taxes, sales taxes and property taxes. Funding for the 1993 capital budget has been derived from the following sources: Enterprise fund service charges Other funding sources (including gasoline tax) Property and sales tax $1,038,700 856,700 483,745 Total $2,379,145 9 Debt Service Fund The Debt Service Fund provides the funds necessary to retire the City's outstanding bonded indebtedness. Debt in this category consists primarily of general obligation bonds used to pay the cost of various public improvements to streets and to facilities for police and fire protection, parks and recreation, drainage and flood protection. Tax Supported Funds Debt Service Funding 1993 Property Tax Special Assessments Motor Vehicle Tax Other Revenue Other Taxes Transfers from Sales Tax and Gasoline Tax TOTAL $1,214,627 665,000 219,063 29,750 22,000 850,750 $3,001,190 Enterprise Fund Debt Service Funding 1993 Projects include major water and sewerage system improvements. Water and Sewer Fees Total City Debt Service $2,437,810 $5,439,000 . 10 1993 Anticipated Revenue The City budget is financed through a wide variety of revenues. The Tax Supported Funds receive most of their revenue from various taxes. The Enterprise Funds are supported mainly by charges for services. The remaining funds of the City are supported by several revenue types. For 1993, the City anticipates total revenues to be about $32,053,610. Tax Supported Funds The activities of the tax supported funds are supported by a variety of revenue sources. For 1993, the total anticipated revenues for these funds are $17,754,868. Sales taxes now make up 37.12 percent of the revenues for these general activities (20.56 percent of all city revenues). The property tax .accounts for 26.40 percent of tax supported funds revenues (14.62 percent of all city revenues). The 1993 City property tax is 29.828 mills per thousand dollar valuation on taxable property. A mill levy is a tax assessed on real property. A one mill increase would raise $1.00 for every $1,000 of the assessed value of real property. For example, a house assessed at $10,000 would be taxed $10.00 at a 1 mill level. Enterprise Funds Enterprise Funds are to be self-supporting based upon the revenue received for services rendered. Thus, these funds do not receive any tax revenues. Anticipated fee revenues of $10,284,500 make up 93.27% of the $11,026,200 in anticipated revenue for these funds. Water and sewer revenues of $8,112,000 make up the majority of these fees. All Other Funds Some of these funds have dedicated revenues which must be used in a specific manner. The $1, 100,000 from the gas tax must be used for street construction, repair or maintenance. The $450,000 from the transient guest tax must be used for tourism and convention development. Other revenues represent fees for services. The Bicentennial Center will collect about $600,000 from charges for services. Our Data Processing and Central Garage will collect almost $861,820 in charges from various City departments and Saline County. Total anticipated revenues for all these funds is $3,272,542. 11 1993 Anticipated Revenues All Funds Amount Percent Taxes: Sales $6,590,000 20.56 Property 4,686,983 14.62 Franchise 1,531,000 4.78 Vehicle 925,000 2.89 Transient Guest 450,000 1.40 Other 113,400 .35 $14,296,383 44.60 Intergovernmental 2,562,507 7.99 Fees: Water $4,912,000 15.33 Sewer 3,200,000 9.98 Sanitation 798,000 2.49 Solid Waste 690,000 2.15 Bicentennial Center 600,000 1.87 Golf Course 529,500 1.65 Recreation 332,800 1.04 Ambulance 310,000 .97 Other 621,250 1.94 11,993,550 37.42 Fines 424,000 1.32 Special Assessments 740,000 2.31 Interest 552,000 1.72 Reimbursements 1,165,170 3.64 Temporary notes 320,000 1.00 Total Anticipated Revenues $32,053,610 100.00 % *"""",)\;6':" , - ,"'" "W.' " I I City of Salina Organization Chart --E5 Risk Legal Mana ement Finance & Administration Data Processing City Clerk Accounting Utility Accounting Treasurer City Prosecutor .- I Municipal I Court General Services Streets Flood Works Cemetery Traffic Control Central Garage Sanitation Landfill Gen. Improvements ----., Assistant City Manager I Perso~el 1- Hu",?" RelatIons Arts & Humanities Museum Engineering & Utilities Engineering Design Inspection Traffic Water & Sewer Water Treat & Dist. Sewage CoIl/Treat. Pretreatmen t Police Records Internal Affairs Investigation Patrol Traffic Training Planning & Bicentennial Parks & Fire Development Center Recreati on Planning Operations Swimming Pools Operations Pennits & Inspections Food & Beverages Golf Course Paramedics Comm. Development Business/Box Off. Neighborhood Centers Training Parks Prevention Recreation For More Information Contact: City Manager's Office Room 202, City-County Building 300 West Ash Salina, Kansas (913) 826-7250 or Finance Department Room 206, City-County Building 300 West Ash Salina, Kansas (913) 826-7240 Produced by: Dennis M. Kissinger, City Manager; Michael Morgan, Assistant City Manager; Robert K. Biles, Director of Finance and Roger Steinbrock, Administrative Intern. December 1992.