2018-2019 Proposed Budget July 20, 2017
Focus of the Budget Process 2 • Alignment to City Council’s mission • Review of business practices • Enhancing customer service • Financial sustainability • Engaging stakeholders
Starting the Process 3 • Zero-Based Service Review Process – reviewed alignment to City mission, core areas and Departmental goals; considered processes from customer view • Review of revenue portfolio - identified threats, trends and cost recovery options • Engagement – continued to engage residents and other stakeholders
Mission Alignment 4 Focus on Mission: As an exceptionally well-run city, we will: Keep Wichita safe; Grow our economy; Build dependable infrastructure; and Provide conditions for living well.
Financial Sustainability 5 • 20 th Century revenues funding 21 st Century services: online purchases; phone land-lines; cable TV; gasoline gallons used • Weather and commodity price dependent revenues: natural gas, water franchise fees • Economically sensitive revenues: sales tax, motor vehicle tax, property tax
Community Engagement 6 June 15 & 20 Social Media Town Hall events July 5, 10 & 19 Staff presented at DABs July 17 Staff presented at Wichita Independent Neighborhoods (WIN)
Community Engagement 7 • Unpaved streets - health impact of dust, use of GO at- large resources to pave streets • Neighborhoods - mitigation of nuisance properties • Fireworks stand permitting - questions about the proposal
Social Media Town Halls 8 • Feedback is essential to best serve residents • Over 135,000 reaches and 670 comments • Considerable interest in traffic safety, street maintenance and downtown investment • There was less feedback on recent priority areas like snow removal and trees
Initial General Fund Forecast 9 $250 $245.8 $245 $240.2 $240 $238.4 Millions $235.0 $235 $229.8 $230 $227.7 $225 $220 $215 2017 Revised 2018 Proposed 2019 Projected Revenues Expenditures
Proposed Adjustments 10 • Expenditure adjustments • Revenue adjustments • Health insurance; interest earnings adjustments • CIP integration
11 Total City Budget Where City of Wichita Dollars Come From Where City of Wichita Dollars Go A LL F UNDS 2018 P ROPOSED , $590,948,221 A LL F UNDS 2018 P ROPOSED , $590,948,221 Franchise Fees Appropriated Other $47,225,124 Reserves Sales Tax Property Tax $39,293,451 8% $42,426,704 $60,075,692 $113,273,443 7% Debt Service 7% 10% 19% $163,321,436 28% Other Sources $107,746,625 Appropriated 5% Capital Outlay Balances (net) $6,212,500 $25,628,020 1% 4% Salaries and Contractuals Charges for Benefits $92,104,719 Services $224,486,132 Commodities 15% $209,584,386 38% Special $23,103,279 49% 4% Assessments $27,414,931 5%
12 General Fund Revenues G ENERAL F UND 2018 P ROPOSED B UDGET , $236,731,729 Franchise Fees Gas Tax $47,225,124 Sales Tax $15,352,926 20% $29,812,846 7% 13% Motor Vehicle Tax $12,239,239 5% Property Tax $78,470,644 Other Sources 34% $48,003,512 Transfers 19% $5,627,438 2%
13 General Fund Expenditures G ENERAL F UND 2018 P ROPOSED B UDGET , $236,731,729 Library $9,210,771 4% Other $45,916,383 20% Park Police $16,543,073 $85,776,419 7% 36% Public Works & Utilities $33,476,921 Fire 14% $45,808,162 19%
14 Highlights • Funds Phase I of the Police Staffing Plan • Provides $8 million for contracted street maintenance, increasing to $10 million in 2019 • Centralizes mobility and parking functions to enhance coordination
15 Highlights • Increases Transit support to $4.8 million annually, with additional Hyatt funds • Includes 11 new staff for the Advanced Learning Library • Maintains a stable mill levy rate and reserves of $29.5 million
Proposed Adjustments 16 Expenditure Items 2017 2018 2019 Coordination of contracting $0 $58,000 $58,000 Fire reserve fleet adjustments 22,980 91,920 91,920 Shift to part-time staffing 27,000 110,000 110,000 Sister Cities adjustments $0 5,000 5,000 Stryker field adjustments $0 75,000 125,000 Natural gas contracting $0 119,000 119,000
Proposed Adjustments 17 Expenditure Items 2017 2018 2019 Eliminate GF transfer to $185,000 $185,000 $185,000 Economic Development Fund Station 6/38 staffing adjustments 0 0 335,000 Process improvement savings 0 200,000 400,000 Other adjustments 29,160 36,910 114,610 Total Expenditure Adjustments $264,140 $880,830 $1,543,530
Proposed Adjustments 18 Revenue Items 2017 2018 2019 Franchise fee collections $9,000 $81,000 $131,000 Finance Dept. cost recovery 80,000 80,000 80,000 Fireworks stand permitting 0 135,000 135,000 Fire inspection fees 0 35,300 35,300 Expand diversion programs 10,000 20,000 20,000 Adjust parking fine schedule 39,500 79,000 79,000
Proposed Adjustments 19 Revenue Items 2017 2018 2019 Improve athletics cost recovery $0 $62,050 $62,050 Implement youth fast-pitch softball 0 30,000 30,000 Expand Park fundraising 50,000 100,000 100,000 Adjust accident report fees 0 48,000 48,000
Proposed Adjustments 20 Revenue Items 2017 2018 2019 Adjust child-care license fees $0 $15,000 $15,000 to full cost recovery Implement food-handlers 0 25,000 25,000 training fee Revenue study 0 250,000 250,000 Other adjustments 22,100 103,875 103,875 Total revenue adjustments $210,600 $1,064,225 $1,114,225
Summary of Adjustments 21 Item 2017 2018 2019 Initial Deficit ($2.1) ($3.4) ($5.6) Health & Interest adj. $1.6 $0.7 $0.7 Revenue & Expenditure adj. $0.5 $1.9 $2.6 Police Staffing Plan $0.0 ($3.2) ($3.0) CIP integration $0.0 $4.0 $0.0 Property Tax revenues $0.0 $0.0 $3.2 Surplus/(Deficit) $0.0 $0.0 ($2.1)
Looking Forward 22 • Revenue study - to provide systematic approach to cost-recovery • Enhanced business process review - empowering employees, utilizing Lean principles and best practices • Continual zero-based service review – ensuring alignment with core priorities and customer-focused review of strategies and structure
Upcoming Events 23 August 1 Public hearing August 8 City Council adopts budget
Discussion 24
2018-2019 Proposed Budget Serving You, In Many Ways, Every Day
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