CITY
MANAGER, FRANK SOUKUP
TEL: (620) 532-3111
FAX: (620) 532-2147
P.O.
CITY MANAGER REPORT: July 14, 2010
Budget: The city is in the final stages of completing the 2011 Budget. The last revisions to the budget holds the Mil Levy steady for the city, at 53.300 mils. The city did experience a slight increase in property valuation. The 53.300 mils helps to finance the following funds: General Fund, which includes Police, Street, Parks, Cemetery, EMS, Fire, Transportation and General Administrative Services; the Airport Fund, the Flood Control Fund, the Bond & Interest Fund, the Library Fund, and the Employee Benefits Fund.
The Airport receives a portion of the Mil Levy to help finance the annual operations of the airport, plus Capital Improvement Projects at the airport. The Mil Levy varies from year to year.
The Flood Control Fund receives a portion of the Mil Levy. In previous years, the amount was less than one mil. The proposed 2011 Budget increases the Mil Levy substantially, to approximately 4.5 Mils, which will be used for the future replacement of a bridge located on East “G” Avenue.
The Bond and Interest Fund receives less than one (1) mil toward debt service payments.
The Library receives a six (6) Mil Levy to help fund the annual operations of the Kingman Library. The Library receives additional funding through grants and fees.
The Employee Benefits Fund levy varies annually, with the 2011 Budget containing approximately fifteen (15) Mils. The fund expenses includes Workman’s Compensation Insurance Premiums, the city share of federal taxes, and Health Insurance Premium costs. The fund includes one (1) Mil levied for transfer to the Library for its Employee Benefits program.
The three (3) utility funds, Water, Waste Water and Electric budgets do not contain any additional rate changes in 2011. The Water and Waste Water Funds have increased the rates over the last several years and although the revenue is not meeting all projections, the increases have allowed the city to operate the funds without utilizing the reserve accounts to pay for the normal operations of the utilities.
The electric fund changed the rate structure in January of 2010. It is not anticipated that an additional rate change will be necessary. The Energy Cost Adjustment for 2010, which is a reflection of the costs to purchase and generate the electricity for Kingman, has been a credit. When the ECA was developed, it was anticipated that the costs of electricity purchases and generation would be higher than what we are experiencing . Purchase costs are down somewhat due to the poor economy nationwide, while the costs of generation is lower due to the lower natural gas prices and diesel fuel prices.
City Office Remodel: The remodel project for the city office is being revised in the scope and some details. The city has established a tentative schedule of August 2, 2010 for Advertising the bids, and September 15, 2010 to accept bids for the project.