AUTHORIZING a public hearing for December 8, 2020, for the purpose of hearing and answering objections of taxpayers relating to the proposed amendments to the 2020 Operating Budget.

Voting Requirement: At least six (6) votes of the Governing Body is required.

(Approval authorizes publication of the Notice of Public Hearing for a public hearing that would occur on December 8, 2020 to consider budget amendments.)  

At least six (6) votes of the Governing Body is required.

Whether to set a public hearing for December 8, 2020 to consider budget amendments.

K.S.A. 79-2929 allows for governing bodies to amend a budget based upon a standard process outlined in statute that follows a similar process for the budget adoption. Any amended budgets for proposed increases in expenditures are required to be balanced by previous unbudgeted revenues or balances other than ad valorem property taxes. At no time after setting the maximum taxes levied can the governing body increase the ad valorem property taxes.

During budget planning, staff are planning for budgets typically eight months in advance of a the beginning of the upcoming fiscal year. The governing body typically will adopt the budget four months in advance of the upcoming fiscal year. Amendments are needed due to the changing nature of the City’s budget, especially if more revenues are received than estimated.As required by State law, the governing body must hold a public hearing to consider amendments to the 2020 Operating Budget.

Staff recommends the Governing Body move to set the public hearing date for December 8, 2020, and authorize publication of the public hearing notice in the Topeka Metro Newspaper.

Tax Increment Financing Fund (220, 402, 403) –These funds were established to monitor the amount of property taxes received for tax increment financing districts created for redevelopment of blighted areas. The 2020 adopted budget was $250,000. Revenues from the fund are transferred to the Debt Service fund to pay for capital projects. The increase is due to activity in the Wheatfield district.

Federal Funds Exchange (276) – The City of Topeka enters into a master agreement with the Kansas Department of Transportation for use of federal and state transportation funding. In 2019, the City set up a fund to better track the revenue and expenditures of these federal and state funds. This fund has received $2,397,420 of revenue in 2020 and the recommendation is to approve an expenditure budget to match the revenues received.

Historical Asset Fund (289) -- Prior to 2017, this fund provided funding for acquisitions, rehabilitation, and preservation of historical landmarks or historic resources located within the City. The funding source was Transient Guest Tax. The allocation from TGT expired in 2016 so the only funds are carried over from prior year grants.

Information Technology Fund (613) - The 2020 adopted budget is $3,921,044, the recommendation is to increase the budget authority to $4,021,044. This fund provides for the information technology (IT) needs of the City and is funded by charging departments annual IT fees. A budget amendment is needed due to the labor, equipment and maintenance fees tied to the COVID-19 pandemic. The source of funding is fund balance.

CARES Restricted Fund (720)– This fund was created to help the City respond to the COVID-19 public health emergency.  The recommendation is to transfer $8,918,302 of General Fund monies to this newly created fund which is equivalent to the amount of Coronavirus Relief Fund federal funding received by the City that was used to offset public safety personnel expenses.  This fund was established to track the City's expenses associated with the public health emergency preparation and response. A budget amendment is required to transfer these funds to this newly established fund. The total impact is an INCREASE of $11,729,822 from $4,171,410 to $15,901,232.

Tax Increment Financing Fund (220, 402, 403): Fund Balance/Current Year Revenue

Federal Funds Exchange (276): Fund Balance

Historical Asset Fund (289): Fund Balance

Information Technology Fund (613): Fund Balance

CARES Restricted Fund (720): Fund Balance