By BECKY KISER
Hays Post
Hays city commissioners have been reviewing the proposed 2017 budget for the past month. After some discussion during last week’s work session, they agreed to keep outside agency funding requests at the 2016 level.
“It’s going to be very difficult for us to spend more money given the very tight budget situation that we face,” said Commissioner Henry Schwaller.
Three groups–Fort Hays State University Scholarship Program, Ellis County Historical Society and Hays Arts Council–had each asked for an increase in city funds for 2017.
City Manager Toby Dougherty told commissioners the Hays Public Library modified its mill levy request. The HPL board had approved its preliminary budget before the city received its assessed valuation from Ellis County. According to Dougherty, HPL then “found out it was in danger of losing some state grant money for books and so submitted another (higher) request to make sure it was in conformance with the state.”
The net effect, explained Hays Finance Director Kim Rupp, was an increased 1/4 of a mill–about $51,000.
Commissioner James Meier asked what adjustments then had to be made in order for the city’s mill levy to remain at 25.
“In the employee benefit fund, the contingency line dropped by that $51,000,” Rupp explained. “The library can go to six mills, as well as one mill on their employee benefits. They’re now at 5.623 and 0.823. So if you maintain the city’s 25 mill levy, you have to reduce an employee benefit fund and/or subsidize with general fund money.”
Funding for the Hays Public Library funding is required by state law and charter ordinance, according to Dougherty. “You have a charter ordinance that says the library can ask for up to six mills for general operation and one mill for employee benefits,” he reminded commissioners.
Keeping the city’s mill levy at 25 “is a goal; it’s not codified,” Dougherty added. “The 25 mill goal was developed with the library being a part of that.”
Dougherty reviewed the proposed budget highlights at an earlier meeting.
“Again, a levy of 25 mills, which we have maintained for many years now,” Dougherty pointed out, ” and the budget is balanced.
“We are putting money into reserves which helps us pay cash for street programs and buy down debt, things like that.”
No full-time employees will be added next year and there will not be a salary increase for current employees.
“Sales taxes are declining. We’re very aware of that, so at this point we didn’t feel it was prudent to budget salary increases,” Dougherty explained.
However, city staff has been “challenged to find me money for raises next year. Even if we go through a continued downturn in sales tax, I want to try to find money for raises. I don’t want to go two years in a row without that. I’m confident city staff is going to come back with ways to save money, find money for raises next year,” he added.
The local sales tax, which funds the city’s general fund, is projected to be down about $250,000.
“Overall revenues for the general fund (are) down about $275,000. But if you look at total operating expenditures, they’re down about $300,000. That’s our reaction to the (declining) sales tax. Revenue will be down about $275,000; we’re gonna cut $300,000 of operating expenditures to make sure we stay under the budget,” Dougherty emphasized.
The 2017 street maintenance program is fully funded and the reconstructions of 8th Street and Allen Street have been moved up in the Capital Improvement Plan.
“We’d originally planned for those in 2018 and 2020, and right now we’re looking at 2017 and 2018 for those two projects. They’re our top two priority projects right now,” he said.
City commissioners will continue reviewing the proposed 2017 budget at their meeting tonight and consider setting a public hearing date of Thu., Aug. 11.
Click here to see the complete July 28 agenda.