City Commission

Study Session Minutes Ottawa, Kansas Minutes of June 26, 2023 The Governing Body met at 4:00 pm this date at City Hall with the following members present and participating to wit: Mayor Crowley, Mayor Pro Tem Skidmore, Commissioner Caylor, Commissioner Graves and Commissioner Clayton. A quorum was present. Mayor Crowley called the meeting to order. Public Comments None were given. Minutes to Review The Governing Body reviewed minutes from the June 19, 2023 Study Session. The Governing Body agreed by consensus to place this item on the next Regular Meeting agenda on July 19, 2023. Hidden Lakes Subdivision Phase I Final Plat The Governing Body heard from Jenna Hillyer, City Planner, who stated the applicant is proposing an approximately 8.95-acre residential subdivision located east of the intersection of 19th and Princeton streets and consists of 25 lots, 24 of which are for single-family residential use. There is an additional lot and tract for community use. The plat includes public street construction and dedication with new utilities, sidewalks, street lighting, stormwater collection, and management. Ms. Hillyer reviewed the following items: • Anderson Engineering and Belmont Development Company submitted a Final Plat for Hidden Lakes subdivision, Phase 1, on March 25, 2023 • Includes a variance for a street right-of-way of less than 45 feet wide • Variance was considered by the Planning Commission on January 11, 2023 and recommended for approval to the City Commission, who approved the preliminary plat and variance on February 1, 2023 • Several concerns were received at a public hearing on October 24, 2022 • The Planning Commission approved the preliminary plat with the following conditions – stormwater plan approved by City Engineer, traffic flow and impacts would be addressed, and access property impacted by the development would be effectively addressed with the two property owners affected • The final plat was submitted and met the conditions of approval, although the details of the change to the traffic patterns on 19th Street are not finalized • Developer has acceptably addressed City Staff concerns from the preliminary plat regarding traffic, stormwater, sewer, fire and emergency service access with the final plat revisions • Developer has not met the requirements and conditions laid forth by the Planning Commission to engage the affected property owners in resolving the impacts on their property • Recommendation made by the Planning Commission with acceptance of staff finding and a vote of 6-0 to move the Final Plat to the City Commission for consideration of approval Public Comment was received from the following citizens: 1 June 26, 2023 City of Ottawa Study Session Minutes June 26, 2023 Page 2 • Gary Harris, 1801 S. Princeton Street, expressed concerns regarding stormwater issues • Karen Harris, 1801 S. Princeton Street, expressed concerns regarding the traffic study • Kathy Martin, 1905 S. Princeton Street, expressed concerns about fence installation and driveway placement After much discussion, the Governing Body agreed by consensus to place this item on the next study session agenda on July 10, 2023 for further review. 2024 Budget Overview The Governing Body heard from Finance Director Melanie Landis, who stated that today's budgets are mill levy funds. These funds include Ottawa Memorial Auditorium, the Debt Service and the General Fund. These funds are supported by ad valorem (property tax) dollars as one of the primary sources of revenue. Ms. Landis stated that consideration had been given to the following three options: • Revenue Neutral Rate o Maintain a cap on the authorized expenditure dollar amount from the prior year o Does not include any increase in valuation through growth (new construction) or increased valuation of existing property o This option is not recommended as it runs contrary to the strategic directive to pursue economic development and an expanded property tax base for commercial, industrial, and residential properties, and burdens existing property taxpayers and utility customers with debt service on community investments such as Proximity Park and investments such as the NRP and TIF programs • Flat Mill Levy o Captures the entirety of the assessed valuation at the same 2023 percentage of the total operating budget o This impacts all property owners, both new construction and existing property owners, uniformly • Reduced Fiscal Impact on Existing Property Owners o This captures 100% of the revenue generated by new construction and any change in property use, such as residential to commercial or R-1 to R-2 land use o Reduces the impact of increased assessments on existing property owners not changing the land use of their property or adding valuation through new or additional construction • Recommended option is to choose an approach to the 2024 budgets revenue stream that reduces the impact of any increased valuation of existing property owners while capturing 100% of the impact from new construction, change in use, and property tax incentives that expire and begin generating additional property tax revenue Ottawa Memorial Auditorium The Governing Body heard from Ottawa Memorial Auditorium Director Tiffany Evans and Finance Director Melanie Landis regarding the 2024 proposed Ottawa Memorial Auditorium budget. The City of Ottawa owns and operates the OMA, which is property tax supported and receives additional revenue from motor vehicle taxes, donations, ticket sales, facility rental and concession sales. Ms. Landis reviewed the following items: 2 June 26, 2023 City of Ottawa Study Session Minutes June 26, 2023 Page 3 • Proposed budget is based on estimated revenues and indicates a declining fund balance over the coming years • Internal discussion continues regarding revenue and review of operational expenditures to identify ways to positively impact the ending fund balance over time • Final recommendation will come to the Commission on July 10th Debt Service The Governing Body heard from Finance Director Melanie Landis regarding the 2024 proposed Debt Service budget. This fund is utilized to make the principal and interest payments for short and long-term debt. Ms. Landis reviewed the following items: • Payments in this fund exclude lease purchase agreements or loan payments • Revenues in this fund are generated through ad valorem property taxes, personal and real estate taxes, special assessments, interest income and transfers from other funds • Proposed budget is based on estimated revenues and will be brought back to the Commission with final recommendation on July 10th • Expenditures from this fund are related to general obligation bond debt payments • Payments scheduled for 2023 include principal payments of $3,601,560 and interest payments of $570,505 • Only 15% of the total debt of the city is supported by ad valorem taxes • Remaining debt is paid from the debt service fund through transfers made from the fund related to the project debt General Fund The Governing Body heard from Finance Director Melanie Landis regarding the 2024 proposed General Fund budget. This fund supports operations of the city that are either non-revenue generating or generate less revenue than necessary to provide the service. Ms. Landis reviewed the following items: • Support and community service funded by the General Fund include: community development, maintenance of city facilities, cemeteries, streets and parks, law enforcement and court services, fire protection and services, support services including information technology, human resources and finance, and overall city management • As a mill levy-supported fund, special attention must be given to balancing supported operations against the property tax impact to our residents and businesses • General Fund is supported by revenues including ad valorem tax, sales and compensating use tax, motor vehicle taxes, fines and fees, franchise fees and miscellaneous revenues and reimbursements from various sources • Transfers are made from the special drug and alcohol fund and each of the utility funds to the general fund annually • Initial revenue estimates have been prepared for the general fund; however, a final recommendation will be made on July 10th • Importance of funding results of the compensation study were identified as the first priority and all other requests for new personnel or capital expenditures have been placed on hold until another source of funding can be identified or addressed with the 2025 budget. The Governing Body discussed the different options and agreed by consensus to have staff present a couple of options for presentation at the next Study Session on July 10th. 3 June 26, 2023 City of Ottawa Study Session Minutes June 26, 2023 Page 4 Review of City Ordinance Prohibiting Fireworks The Governing Body heard from Fire Chief Tim Matthias, who reminded the community of the current ordinance, which prohibits fireworks from being sold or shot in the City limits. Chief Matthias stated it is an arid year with high temperatures, so the potential for more fires. City Manager's Comments City Manager Brian Silcott updated the Governing Body on current projects. Commissioner's Comments Commissioner Clayton wished everyone a safe, happy 4th of July. Mayor Pro Tem Skidmore commented that the parks look great and thanked city staff. Mayor's Comments Mayor Crowley had no comment. Announcements Mayor Crowley made the following announcements: • June 27, 2023 Special Announcement – 9:00 am, Kanza Park (south end off 15th Street) • July 3, 2023 Study Session – 4:00 pm, CANCELED • July 4, 2023 July 4th Holiday – City Offices CLOSED • July 5, 2023 Regular Meeting – 7:00 pm, CANCELED • July 10, 2023 Study Session, 4:00 pm, City Hall Adjournment There being no further business to come before the Governing Body, the Mayor declared the meeting duly adjourned at 5:29 pm. /s/ Melissa Reed Melissa Reed, City Clerk 4 June 26, 2023