The commission approved the 2011 budget, which starts Jan. 1, that has a mill levy of 34.109 mills. A mill generates $1 for every $1,000 in assessed valuation. Finance director Eddie Balluch said the levy would generate $1.76 million in property taxes to support city services. That is up about $28,079 over the current budget. The city’s assessed valuation is down about $172,000 from a year ago and stands at $51,679,104.
The city also is projected to collect about $1.15 million in sales taxes. City manager Allen Dinkel commended the commission and city staff for being conservative in the past for projecting sales tax collections. Sales tax collections are slightly above 2009 levels, but below the record-breaking 2008 totals. They do remain above 2006 and 2007 levels.
Past commissions and administrations have also been conservative in their approach and he said that has served the community well.
“Its very realistic in the budget process,” Dinkel said.
Mayor Diane Miller said many hours were spent by department heads and staff in preparing a recommended budget.
Commissioner Nesha Bailey-Mason said the commissioners did not take their job lightly. They studied the proposed budget, and asked questions and sought budget reductions where it was possible.
“It is a good cooperative effort,”Bailey-Mason said.
“Preparation of the budget is the single biggest issue we grapple with,” said commissioner Dennis Weishaar, who added that spending is something the commission deals with on a year-round basis.
For someone with a home valued at $100,000, it means he would pay $392.25 in taxes to support the city. Residential property has an assessment rate of 11.5 percent. Balluch said that will be an increase of $12.40, or about a $1 a month. For someone with a commercial property valued at $250,000, he would pay $2,131.81 in taxes to support the city. Commercial property has an assessment rate of 25 percent. The finance director said that is an increase of $57 or about $5 a month.
Miller said the budget falls on the responsibility of the elected body. She said the 2011 budget should provide for the services the community expects.
Balluch and Dinkel provided an overview of the budget, which will serve as the guiding document for planning the city’s spending in 2011.
Balluch said the general fund revenue and expenditures are about $6 million. The general fund pays for day-to-day operations and provides for police and fire protection. The water fund also has revenues and expenditures of $1.7 million. The water fund is an enterprise fund, which means its source of revenue is from the sale of water. City officials are looking at raising rates because of the inflationary costs related to producing and treating water over the past decade. The city also has three years left on its long-term bonds to pay for the plant.
The sewer fund has revenues and expenditures of $3.23 million. It is also an enterprise fund. The fund also carries long-term debt for paying off a treatment plant that was completed in 2008.
Dinkel said major products planned for 2011 include a state resurfacing project along Buckeye, reconstruction of East First Street, continuation of a housing rehabilitation project; an airport taxiway project, repairing the fountain in the rose garden; and renovating kitchen in the Abilene Civic Center. Regular planned projects include chip and sealing streets, curb and gutter replacement, manhole replacement and repair, water and sewer line replacement and levy maintenance.
Major equipment purchases in 2011 are to replace a copier in the police department, update computers, replace picnic tables in the city park, purchase a single axle dump truck for public works, buy a pickup for the water treatment plant, purchase a fork lift at the recycling center and renew cost-effective equipment leases.
Dinkel said the city will continue to monitor the state of the economy, stabilize the water fund and continue to provide a high level of services that Abilene citizens expect.
The city manager said past commissions and administrators have done a good job of being conservative in their purchases.
Balluch said the city has a total of 68 full time and part time employees, which does not include summer or seasonal workers.
The finance director said the budget gets most of its headlines during the budget hearing, but he said it becomes a year-round effort.
“The budget is an ongoing process,” Balluch said.
Department heads begin meeting in March to discuss their needs and the commission devotes special study sessions in early summer to review recommendations and ask questions. The nearly $16.8 million budget is adequately funded to take care of day-to-day operations as well as planning for capital expenditures and setting money aside for long-term projects, Balluch said. The city projects adequate carryover for 2012.
No one voiced objection during the public comment session. A copy of the budget briefs will be available for public review at the city office, Dinkel said.
HOME application
The commission approved a resolution for application for additional Home Investment Partnership Program funding. The city made application for $398,000. If successful, the city would need to dedicate $73,512 to the grant.
Carol Torkelson with the Beloit-based North Central Kansas Regional Planning Commission, said the application must be made this month for the next round of state funds. Abilene is currently using a HOME program.
Torkelson said the program has proven to be a popular one in Abilene and in other communities.
“The program is set up to add 20 years of useful life to a residence,” Torkelson said.
The program keeps property on the tax rolls and increases contractor jobs, she said. It is also a source of pride and encourages upkeep in neighborhoods.
The program also allows access into weatherization components designed to increase efficiency.
Miller said the program was opened up city wide in the last application period and has proven to be en effective program.
“We have seen some positives,” she said.
An Abilene man asked the commission to consider what it can do to help reformulate a business block along West First between Cedar and Spruce. He believed the area could hold more economic promise with city incentives.
Scott Ostermann, 415 Brice Court, said he would be willing to have land available for economic development.
Miller said there are incentives depending on the type of project.
Ostermamn said he would be willing to meet with the commission in a work session to discuss anything further.
In other action the commission:
• Approved $1,341 bid from John’s Upholstery and Glass, 413 N.W. Third, for 20 sound panels in the Abilene Civic Center’s large conference room. John Graves will construct 20 panels in a 2-foot by 8-foot frame and he will cover them with a fire retardant fabric. Several commissioners said they liked the local bid and believed it will help improve the acoustics in the large meeting room.
• Approved an ordinance that spells out that special assessments be allocated into platted blocks and lots instead of on a per acre base in the Highlands subdivision. The change is considered procedural.
• Approved an amendment in the benefit plan document as a procedural matter that needs to be done each year. The plan document this year reflects the change in funding for the city when it went from fully insured to partially self-funded with the prescription drug plan being separated from the medical plan.
• Approved a resolution lease purchase agreement for two skid steer loaders used in the street and wastewater treatment operations.
• Approved a consent agenda that had the July 26 meeting minutes, and an appropriation and payroll ordinance.
• Was advised the last day for the swimming pool will be Saturday. The annual “bring your dog to the pool day” is from 1 to 5 p.m. Sunday. Dinkel said the staff does receive questions about why the pool closes in mid-August, and he said the reason is that school and related activities start earlier and most of the lifeguards are either in high school or in college. Once they return to those activities there is a shortage of lifeguards.
• Was advised that Connie Borchers had resigned as tourism assistant because her husband, John, had accepted a promotion to a De Bruce Grain operation in Fremont, Neb.
• Was advised a work session is scheduled for 7 a.m. Aug. 17 in the commissioners’ study room in the City Building.
• Conducted a 10-minute closed session to discuss non-elected personnel. No action was taken in open session.
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