8 highlights from the 2017 Wichita city budget

The Wichita City Council on Tuesday passed a $580.5 million budget for 2017.

The budget, which won’t raise taxes or cut spending, will keep a steady mill levy rate.

“We certainly are hearing from people about what their priorities are, and that continues to shape our budget,” said Mayor Jeff Longwell.

“We hope we can continue to build a more robust climate in Wichita that will help us take care of issues like transit, among other things,” Longwell said.

This year’s city budget process included a social media town hall meeting in June, a series of District Advisory Board meetings and one public hearing last week.

“We’re seeing investments all over town, especially in the core of our city,” Longwell said. “But we’ve got to find a way to fix some of the big ticket items in our city.”

Here are some highlights from the 2017 budget:

1. Where the money comes from

Of the $585.5 million total city budget, 33 percent comes from charges for services, 19 percent comes from property taxes, 11 percent comes from sales tax, and 19 percent comes from other sources.

2. Where the money goes

Core services, including police, fire and public works, make up about 70 percent of the city’s general fund expenses.

The city pays about $216 million for salaries and benefits of its employees.

3. The mill levy remains the same

A mill levy is a property tax based on the assessed value of a property.

The city’s mill levy will remain at 32.656 mills, which will raise almost $110 million. The projected share of city taxes on a $100,000 home would remain at $376, unless a property’s value is increased by the county. Homeowners also pay property taxes to the county, the school district and the state.

A portion of the property tax money goes to Wichita State University for building the Innovation Campus ($513,000), WSU’s National Center for Aviation Training ($800,000), debt service ($1.5 million) and student scholarships ($4.2 million). The city and the county have say over how the funds are used.

4. Transit

The city’s bus system remains the biggest worry for city leaders. The system will be funded through 2019, but long-term funding for the struggling program has not yet been found.

5. Police department additions

Wichita police will add three new officers on the street, one more detective on the Exploited and Missing Children Unit, and seven new positions to help support the police body-camera initiative. The department is conducting a staffing study to determine other areas it needs to fill.

6. Infrastructure

The city is spending $8 million more on street repairs than in previous years. It plans to continue pilot programs for dust control and spot street repairs. City staff is coming up with strategies to help address stormwater, facilities, water and sewer and street maintenance over the next several years.

“I’ve told the council that their legacy will be that we’ll have put in place realistic plans for the improvement of our infrastructure,” said City Manager Robert Layton.

The city is also partnering with CH2M Hill to evaluate the water utility facilities and come up with a long-term plan for updating and maintaining that infrastructure.

7. Reserve funds

The city has significantly increased its general fund reserves since the recession – up to $28 million. The increase helps the city get better ratings from bond agencies, which will lower interest costs on future projects, according to Layton.

8. Looking ahead to 2018

The state-imposed property tax lid will affect the budget in 2018. Next year, the city’s tax levy is projected to increase about $800,000 more than the allowable amount under the tax lid. Public safety and new construction are exempt from the tax lid calculations, according to Longwell.

If the city wants to go over the allowed amount next year, it will have to ask voters for permission.

This story was originally published August 9, 2016 at 3:23 PM with the headline "8 highlights from the 2017 Wichita city budget."