Development News for Lansing, Kansas

City Council Reviews Comprehensive Budget Overview and Financial Projections

Beth presented an overview of the city's budget preparation cycle for the upcoming year. The general fund, which is the largest tax-levy fund, was detailed, focusing on revenue projections. Key revenue sources discussed include property taxes (pending county estimates), local liquor tax, fuel tax, motor vehicle taxes, sales tax, franchise fees, business licenses, and permits/fees. Projections for sales tax are conservative due to a lack of significant new business growth, with a potential small increase attributed to the FIFA event. The presentation also covered departmental expenses, highlighting increases primarily due to salaries and benefits, health insurance, and fuel costs. Savings were noted in the municipal court due to the in-house handling of probation services, offsetting the previous cost of outsourcing. The budget process accounts for potential fluctuations in staffing and includes conservative estimates for expenses like family health coverage and deferred compensation plans. Transfers between funds, such as from the general fund to capital improvements for projects like millan overlay, curbs, gutters, and stormwater drainage, were also detailed. The establishment and purpose of an equipment reserve fund, funded by general fund transfers, were explained as a way to offset the impact of replacement items on the general fund. The police department also has its own equipment reserve funded by moving violation fees, used for items like radios and vehicles. Discussions also touched on the potential establishment of a fire department equipment reserve. Special revenue funds, including those for highway, alcohol/liquor, alcohol/drug (from opioid settlements), police equipment reserve, and transient guest tax, were reviewed. Capital improvement projects, funded by general fund transfers and some federal funds, were discussed, with a significant project planned for 147th Street in 2027. Parks and recreation revenues and expenditures were detailed, including the funding for sports programs, the swimming pool, and debt payments for parks and the aquatic center. Enterprise funds for wastewater and solid waste were presented with projected revenues and expenses, including anticipated waste management rate increases. Capital and supplemental requests for the fire department (hose replacement, assistant fire chief position) and wastewater (clarifier rehab, parking lot resurfacing) were outlined. The budget aims to keep the general fund mill levy flat for 2026, with slight increases due to property valuation changes. The city's fund balance and reserves are a concern, showing a steady decrease, which could impact bond ratings and interest rates.