Proposed Budget July 20, 2017 Focus of the Budget Process 2 - - PowerPoint PPT Presentation

July 20, 2017

2018-2019 Proposed Budget

Focus of the Budget Process

• Alignment to City Council’s mission
• Review of business practices
• Enhancing customer service
• Financial sustainability
• Engaging stakeholders

2

Starting the Process

• 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
• ther stakeholders

3

Mission Alignment

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.

4

Financial Sustainability

• 20th Century revenues funding 21st Century services:
• nline 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

5

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

• 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

8

Initial General Fund Forecast

$227.7 $235.0 $240.2 $229.8 $238.4 $245.8 $215 $220 $225 $230 $235 $240 $245 $250 2017 Revised 2018 Proposed 2019 Projected

Millions Revenues Expenditures

9

Proposed Adjustments

• Expenditure adjustments
• Revenue adjustments
• Health insurance; interest earnings adjustments
• CIP integration

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Total City Budget

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Charges for Services $209,584,386 49%

Other Sources $107,746,625 5%

Property Tax $113,273,443 19% Sales Tax $60,075,692 10% Franchise Fees $47,225,124 8%

Appropriated Balances (net) $25,628,020 4%

Special Assessments $27,414,931 5%

Where City of Wichita Dollars Come From ALL FUNDS 2018 PROPOSED, $590,948,221

Salaries and Benefits $224,486,132 38% Contractuals $92,104,719 15% Commodities $23,103,279 4% Capital Outlay $6,212,500 1% Other $39,293,451 7% Debt Service $163,321,436 28% Appropriated Reserves $42,426,704 7%

Where City of Wichita Dollars Go ALL FUNDS 2018 PROPOSED, $590,948,221

General Fund Revenues

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Transfers $5,627,438 2% Other Sources $48,003,512 19% Property Tax $78,470,644 34% Sales Tax $29,812,846 13% Franchise Fees $47,225,124 20% Gas Tax $15,352,926 7% Motor Vehicle Tax $12,239,239 5%

GENERAL FUND 2018 PROPOSED BUDGET, $236,731,729

General Fund Expenditures

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Police $85,776,419 36% Fire $45,808,162 19% Public Works & Utilities $33,476,921 14% Park $16,543,073 7% Library $9,210,771 4% Other $45,916,383 20%

GENERAL FUND 2018 PROPOSED BUDGET, $236,731,729

Highlights

14

• 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

Highlights

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• 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
• f $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

17

Expenditure Items 2017 2018 2019

Eliminate GF transfer to Economic Development Fund $185,000 $185,000 $185,000 Station 6/38 staffing adjustments 335,000 Process improvement savings 200,000 400,000 Other adjustments 29,160 36,910 114,610 Total Expenditure Adjustments $264,140 $880,830 $1,543,530

Proposed Adjustments

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 135,000 135,000 Fire inspection fees 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 30,000 30,000 Expand Park fundraising 50,000 100,000 100,000 Adjust accident report fees 48,000 48,000

Proposed Adjustments

20

Revenue Items 2017 2018 2019

Adjust child-care license fees to full cost recovery $0 $15,000 $15,000 Implement food-handlers training fee 25,000 25,000 Revenue study 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

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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

• 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

22

Upcoming Events

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August 1 Public hearing August 8 City Council adopts budget

Discussion

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Serving You, In Many Ways, Every Day

2018-2019 Proposed Budget