By Tracy McCue, Sumner Newscow — The Wellington City Council unanimously approved the 2024 budget. City taxpayers should expect a small property tax increase for municipal services when they receive their bills this December.

•Residential property values for a $75,000 home property will see an annual increase of $17.25.

•Residential property values for a $100,000 home property will increase by $23.

•Residential property values for a $125,000 home property will increase by $28.75.

•Residential property values for a $175,000 home property will increase by $40.25.

During its regular session meeting a week ago, the council approved a $49.8 million budget. An estimated 60 people were in attendance. The budget approval was delayed two weeks in anticipation of the larger crowd and moved from the council chambers to the Memorial Auditorium.

“When you figure out the amount of taxes increased by the city for the whole meeting, it is about the cost of a steak dinner,” said Guy Leitch, Wellington City Council member.

Wellington City Manager Jeff Porter said the increase accounts for several expenditures, most notably items like a 2 percent increase in salary for city employees, prescription costs for the ambulance services, and the astronomical increase in the cost of asphalt. He estimated that expenditures for the city will increase about 2 percent.

The proposed tax rate of 57.683 is 2 mills over the Revenue Neutral Rate of 55.683. To be revenue neutral means a taxing jurisdiction budgets the exact same amount of property tax revenue, in dollars, for the upcoming budget year as they did for the current year.

The tax mill levy is expected to go down. This year’s mill levy is 60.912. The proposed mill levy is 57.68.  The general fund will use 43.319, Debt service 7.36, Library, 5.0, and Ambulance and Firefighting, 2.0.

The full city budget can be found here. The budget figures (including city manager’s memo explaining the figures) start on page 52.

Here are some notes concerning the 2024 budget: 

General fund:

• Transfer to Equipment Reserve fund is $300,000.

• Transfer to Capital Improvement fund is $350,000.

• The transfer from the Utility fund is 9.5% of utility revenue.

• The transfer from Sanitation fund is 2% of revenue.

•The budget includes a 2 percent Cost of Living Adjustment for all employees.

• The contingency amount is $720,000.

• Contributions from the General Fund to outside groups were directed as below:

• Chisholm Trail Museum Requested $7,500, Budgeted $7,500
• Wellington Senior Center $6,000, $6,000
• Crime Stoppers $1,000, $1,000
• Su Co Hist. & Genealogical Society $5,000, $5,000
• Futures Unlimited $15,000, $15,000.

Ambulance 

• The Ambulance and Firefighting levy is limited by statute to a 2.0 maximum levy.

• Existing lease purchases are $70,805; a lease-purchase to replace the aerial truck is included for the 2024 reserve, although it will be a delayed closing with the truck not expected to be delivered until 2025, so no payments are anticipated in 2024. An amount of $30,000 is budgeted for ambulance replacement reserve.

Library

• KSA 12-1220 provides that the governing body shall annually levy a tax for the maintenance of the library in such sum as the library board shall determine within the limitations fixed by law. 

• The Library Board submitted a 2023 budget request asking for the total funding that the maximum levy would provide. 

• Providing all funding generated by the maximum levy does not leave any funding available as a contingency. Should tax delinquency be higher than expected, funding may not be sufficient to meet the budgeted amount.

Bond & Interest (Debt Service) 

• To generate sufficient funding for 2024 bond payments, an amount of $367,366 in ad valorem tax is necessary, providing for a total budget of $702,467. That amount also provides for a $117,350 cash basis amount, similar to a contingency in the other funds.

• Due to the retirement of debt in 2022 the amount of funding was adjusted downward in the 2023 budget.

Non-Levy Funds

Employee Benefit Contribution.

• The City’s health care plan year is March 1 to the end of February the following year. Renewal rates are not known until near the tail end of each year.

• The City changed from a self-funded plan to a fully insured plan in 2018 and remains fully insured.

• The fund appears to be at an acceptable level at this time.

Special Liability

• The City’s insurance costs are paid from this fund. The revenue into this fund is reimbursement from the General, Utility, Sanitation, Golf and Airport funds for the appropriate portion of the insurance cost. The City Treasurer compiles a breakdown of insurance costs by department. Hospital Sales Tax (Fund 121)

• 2024 budget is prepared with the 1% sales tax that remains in effect.

Special City Highway 

• The existing lease purchase for the street sweeper and font loader of $51,729 and $35,528, respectively are reflected in the 2024 Budget.

• An amount of $135,000 is transferred annually to the General Fund as a reimbursement for street repairs.

Special Alcohol & Drug Program

• Revenue comes from the 1/3 of the Local Alcoholic Liquor Tax and is used for annual allocation to services or programs that meet the statutory requirements. The estimate of revenue is provided by the State.

• The budget provides for expenditure of all estimated revenue of $18,000, although expenditures are limited to actual cash received regardless of budget amount.

Special Parks & Recreation

• Revenue comes from 1/3 of the Local Alcoholic Liquor Tax and is used for parks and recreation.

• For 2024, four projects/purchases totaling $13,700 are budgeted in this fund.

Tourism & Convention

• Revenue comes from the 6% transient guest tax charged for motel roomsin the city. It is received on a quarterly basis from the State.

• This fund is used for the Chamber annual allocation to serve Conventions & Visitor’s Bureau functions and for Wheat Festival and Community advertising. Funds are also used for the annual appropriation to outside groups/organizations promoting/relating to tourism.

• The 2023 budget is based on estimated revenue of $37,600. Revenue will be monitored throughout the year. If it appears that the revenue estimate will not be reached, expenditures will have to be reduced from the budgeted amount.

• The Chamber requested a total of $40,000, which includes $10,000 for outside groups. Equipment Reserve (Fund 324) (non-budgeted fund) • The transfer from General fund is $300,000.

• See the Capital Expenditures list for purchases budgeted. Capital Improvement (Fund 325) (non-budgeted fund) • The transfer from General Fund is $350,000

• See the Capital Expenditures list for projects and purchases budgeted.

Golf Course 

• Due to the increase in revenue generated in the fund, the subsidy from the General Fund for 2023 was reduced to $150,000. The subsidy for 2024 is budgeted at $145,000, a reduction over the current fiscal year.

• Note – There are variables that can impact end results in the Golf fund. Weather conditions can have an impact on revenue and also on expense related to maintenance on the grounds.

Golf Course Capital Improvement

• This fund has not been used for several years as no excess funding has been available to be transferred from the Golf Course fund.

Utility

• For 2024, the annual automatic increase in utility rates of 2.25% provided by ordinance is included.

• The budget reflects the retention of half of the one-cent KPP surcharge.

• The revenues reflect changes to the base water use fees.

• The percentage of revenue transfer to General fund for 2024 is reduced to 9.5-percent.

• The transfer to Utility Capital Improvement for purchases/projects is $1,908,170.

• The 2024 budget includes a contingency amount of $900,000.

• Note – There are a number of variables that can have an impact on end results in the Utility fund. Utility sales are based on averages over the past. Environmental conditions can have an impact affecting sales, thereby, increasing or decreasing revenue for the remainder of the current year

Utility Capital Improvement  (non-budgeted fund)

• The capital expenditures budgeted are in the amount of $1,583,421

• See the Capital Expenditures list for information on projects and equipment purchases budgeted. Sanitation (Fund 430)

• The transfer of revenue to the General Fund is reduced to 2% from the 10% in previous years. • An amount of $45,000 is budgeted for transfer to the Sanitation Equipment Reserve Fund.

• Several variables can impact the year-end status of the fund. Revenue and expense estimates can be impacted by the number of outside trash haulers using the facility.

Sanitation Equipment Reserve

• The existing lease purchase payment for the refuse truck is $29,167.

• A collection truck is in need of replacement. Status of funding available will have to be reviewed in 2024 to determine if a lease purchase can be accomplished.

Wellington Municipal Airport

• A subsidy from the General Fund in an approximate amount of $55,000 is budgeted for 2023. A subsidy of approximately $55,000 may again be necessary in 2023.

• The variable of airport fuel revenue and expense can have an impact on year-end status of the fund. Fuel revenue and expense are estimates based on prior year history and actual amounts may differ.

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