The City of Manhattan, Kansas, prepares an annual Budget Book, a comprehensive document that includes a citywide budget, as well as department budgets. The city has received the GFOA Distinguished Budget Award for more than 25 years. Following are graphical excerpts from the 2017 Budget Book that disclose typical taxpayer tax payments and primary revenue sources and functional expense categories.

Required

a. Examine the taxpayer calculation for the three-year period. What observations can you make from this illustration? What questions might you ask city budget officials at a public budget hearing?

b. Examine the pie charts and data provided for revenue sources and functional expenses. What are the primary revenue sources? What are the greatest expenditure categories? Taken together, do you have any questions regarding the city’s finances?
State & Local Sales Taxes: Includes city/county sales taxes, and franchise fees
Property Taxes: Includes ad valorem, delinquent taxes, and PILOT’s
User Fees & Licenses: Includes licenses & permits, services and sales, program revenue, utility sales, and fines
Investment Income: Includes land rent, farm income, and misc. investment income
Transfers: Includes transfers for utility administrative services, sales tax, debt service, etc.
Grants, Cont., & Other Rev.: Includes contributions, grants, and misc. revenues

Utilities: Includes Water, Wastewater, and Storm water operations
Public Safety: Includes Fire Operations, Administration, Technical Services, Building Maintenance, Fire Equipment Reserve, Fire Pension K. P. & F., and R.C.P.D
Debt Service: Includes all long-term debt payments
Economic Development: Includes General Improvement, Industrial Promotion, Economic Development Opportunity Fund, CIP Reserves, and Downtown Redevelopment T.I.F.
Public Works: Includes Admin., Streets, Engineering, Traffic, and Special Street & Highway
General Government: Includes General Government, Finance, Human Resources, Airport, Court, General Services, Outside Services, Municipal Parking Lot, City University Fund, Employee Benefits, and Special Alcohol Programs
Recreation & Quality-of-Life: Parks & Recreation, Zoo, Pools, Flint Hills Discovery Center, Library, and Library Employee Benefits
Community Development: Administration and Planning, Business Districts, and Tourism & Convention Fund
Transfers: Includes transfers from Sales Tax to General Fund and Special Revenue Funds

Transcribed Image Text:

TAX COMPUTATION FOR TYPICAL HOMEOWNER 2016 2015 2017 Increase in Valuation: Home Value: Residential Appraisal Rate: (set by State law) Tax Value: 3.3% 3.9% 276,359 3.2% 265,986 285,203 11.5% 11.5% 11.5% 31,781 30,588 32,798 2015 Budget 2016 Budget 2017 Budget Mill Levy Mill Levy Mill Levy Rate Тахes Rate Taxes Rate Taxes 43.963 Paid 46.951 Paid 48.023 Paid $ 120 $ 125 $ 132 $ 131 $ 34 $ 176 $ 135 2$ 2$ General Fund 3.936 4.146 5.356 Library 4.098 4.120 4.107 Library EBF Fire Equipment Reserve 0.977 30 1.078 1.037 34 0.266 8. 0.250 0.720 24 $ 126 $ 150 $ 131 $ 100 2$ $ 924 Bond & Interest 4.108 4.719 4.006 Employee Benefit Fund 2.529 77 2.761 88 3.053 KP&F 1.263 39 1.309 42 1.574 52 $ 819 $1,345 RCPD 26.786 28.568 $ 908 28.170 Total City Tax Bill: 43.963 46.951 $1,492 48.023 $1,575