By BECKY KISER
Hays Post
Hays city commissioners got their first glance at the proposed 2023 budget Thursday evening.
"The budget's balanced. We've put money into reserves. The 25 mill levy is maintained," said Toby Dougherty, city manager, in a review of the budget highlights. "These are things we try to achieve every year."
The city's mill levy has remained the same the past 13 years.
Something new in 2023 is the plan to hire two additional employees.
Those two positions would be for maintenance workers - one in the solid waste department, the other in the department of water resources' production and distribution division.
The number of solid waste customer accounts has grown, Dougherty explained, and there's also been growth in the water resources system.
"Jeff Crispin (water resources director) can get by now with his crew, but he has a hard time being proactive, and as you know, if you're not proactive it's going to cost you more money eventually."
"I like that we're having growth and need more employees," said Reese Barrick, commissioner.
All 184 city employees are slated for a cost of living increase in 2023. The budget will continue including $11,000 per employee for health insurance.
City services, such as fire and police protection, parks, and public works are financed in the general fund. Most of the money comes from the city's sales tax.
Sales tax revenues are expected to be up 10% this year compared to 2021, and are projected to be up 5% in 2023.
Part of the revenue comes from the city's portion of the recently passed Ellis County quarter-cent sales tax, estimated at $1.1 million dollars.
Dougherty noted the $7.6 million transfer to commission capital reserves is "quite large" due to several factors.
A big portion of that is federal relief the city received through the American Rescue Plan (ARPA) ACT during the COVID-19 pandemic.
"The commission capital reserve is your savings account that allows you to pay cash for projects."
Hays is believed to be the only city in Kansas which pays for cash for its projects, according to Assistant City Manager Collin Bielser, which results in interest payment savings.
Also in the general fund are requests for monies from outside agencies, including the CARE Council which funds a number of social services, along economic development dollars requested from the city's scholarship program at Fort Hays State University, Grow Hays, and the Hays Chamber of Commerce. This is the first time the chamber has requested city funding.
Other non-profit quality-of-life groups have requested funding in 2023 through the Convention and Visitors Bureau. Those are the Ellis County Historical Society, Hays Arts Council, Wild West Festival, Downtown Hays Development Corporation and Sister Cities.
The total amount requested by the groups - $556,116 - is nearly $72,000 more than what was allocated last year.
"The budget (for outside agencies funding) is the same as it was last year, so the commission will have to have a discussion on that," Dougherty said.
Assessed valuation for Hays, as determined by the county, is up 12% at $267.2 million dollars.
Just like everyone else's budget, adjustments have been made for rising fuel prices. The city's allocation for fuel has increased by $70,000.
Commissioners will review the proposal in more detail July 21 and again August 4, which will focus on the funding requests from the outside agencies.
"We always give the commission some time to review, absorb, think about the budget and talk about it before asking about outside agency funding requests."
The 2023 capital improvement plan includes an extra $1 million for improvements to East 13th Street, anticipating more traffic as USD 489 begins its planned construction of a new high school east of the current building.
Also in capital improvements is $9 million dollars for design of the R9 Ranch long-term water supply project.
Hays Post will have an update on the long-awaited project next week.
Commissioner Shaun Musil thanked city staff for their work on the budget.
"Seems like we're continuing to stay aggressive with street maintenance, water," Musil said. "I like it that we stay ahead instead of behind like a lot of communities do."
"I like that we're staying ahead while still putting money into the reserves fund," agreed Commissioner Barrick.
The budget hearing and subsequent adoption is scheduled for September 8.
Although Commissioner Sandy Jacobs was absent from Thursday's meeting, Dougherty said he had already reviewed the budget proposal with her individually.