City Commission

Regular Meeting Minutes City Hall Minutes of June 26, 2024 The Governing Body met at 4:00 pm on this date for the Regular City Commission Meeting with the following members present and participating to wit: Mayor Skidmore, Mayor Pro Tem Allen, Commissioner Caylor, Commissioner Clayton and Commissioner Crowley. Mayor Skidmore called the meeting to order. Mayor Skidmore welcomed the audience and led the Pledge of Allegiance to the American flag. Pastor Darron Story from Westminster Presbyterian Church gave the invocation. Public Comments None were given. Appointments, Proclamations, Recognitions, Nominations, and Public Hearings Presentation of Retirement Plaque to Dan Riney, Director of Utilities The Governing Body presented Director of Utilities Dan Riney with a retirement plaque for his years of service with the City of Ottawa. Mr. Riney thanked the Governing Body for the recognition. Consent Agenda Commissioner Crowley made a motion, seconded by Mayor Pro Tem Allen, to approve this consent agenda to include minutes from the June 19, 2024 Regular Meeting and the Regular Meeting agenda. The motion was considered, and upon being put, all present voted aye. The Mayor declared the consent agenda duly approved. Declaration No declarations were made. Unfinished Business None. New Business Review of Monthly Reports Submitted by Partner Agencies The Governing Body reviewed the May 2024 monthly financial and activity reports submitted by community partner agencies. Proposed Vacation of Easement at 1015 N. Cherry The Governing Body heard from City Planner Zack Martin, who reviewed an ordinance vacating the utility easement at 1015 N. Cherry and provided the following information: • Sunrise Estates LLC requested the vacation of the utility easement for developing a four-plex residential use on an undeveloped .67-acre tract. • Planning Commission approved the application, and staff recommended approval. Mayor Pro Tem Allen made a motion, seconded by Commissioner Caylor, to approve this ordinance. The motion was considered and upon being put, all present voted aye. June 26, 2024 1 City of Ottawa Regular Meeting Minutes June 26, 2024 Page 2 The Mayor declared this ordinance duly approved, and the ordinance was duly numbered Ordinance No. 4135-24. Review of 2025 Operating Budget The Governing Body heard from Finance Director Melanie Landis who discussed the 2025 Budget, covering the budget process, valuation, tax abatements, revenue neutral rate, and General Fund revenue sources. Budget Process The City Commission has reviewed the 2025 Budget for Enterprise funds, Community Partner requests, and Special Revenue funds. The remaining discussions will focus on valuation, available revenue, the assigned revenue neutral rate, and ad valorem taxes establishing an estimated mill rate. Assessed Valuation The annual assessed valuation notice is received by June 15 each year. The estimated assessed valuation for 2024, supporting the 2025 budget, is $146,019,909, which is $11,312,605 or 8.4% higher than 2023. Each mill represents $146,019 for the 2025 budget. The final valuation will be completed by Franklin County in October. Tax Abatements Tax abatements, including TIF, RHID, IRB, and NRP, are calculated annually. The reported valuations subject to rebates total $12,867,795, reducing the 2024 valuation supporting the 2025 budget. The impact of Neighborhood Revitalization rebates for 2025 totals $183,025, equivalent to 1.25 mills. Revenue Neutral Rate Kansas Senate Bill 13 (SB 13) requires a public hearing regarding the intent to exceed the revenue neutral rate. The City’s RNR is 43.609 as calculated by Franklin County. On July 17, 2024, the Governing Body will decide whether to exceed the revenue neutral rate. The 2025 Revenue Neutral Rate for the General Fund is 31.369, Debt Service is 3.369, Auditorium is 1.521, and Library is 8.585, totaling 44.844, compared to the 2024 Mill Rate totals of 30.505, 3.276, 1.479, and 8.349 respectively, summing to 43.609. For all taxing entities, affecting properties within the city limits of Ottawa, the total mill rate has seen a reduction of 11.084 mills from 174.025 in 2022 to 162.941 in 2024. Taxing entities include USD 290, Franklin County, City of Ottawa, Recreation Commission, and Frontier Extension District #11, and the State of Kansas. General Fund Revenues The General Fund's primary revenue sources are Sales and Compensation Use Tax (46%), Ad Valorem Tax (32%), and Operating Transfers (12%). Revenue trends for major sources have moved upward over the past six years with sales and compensating use tax increasing by 5% for City and County sales tax and 10% for City and County compensating use tax. Ad valorem trends are determined by the adopted mill rates of the City Commission annually All other revenue sources for a June 26, 2024 2 City of Ottawa Regular Meeting Minutes June 26, 2024 Page 3 small percentage of the general fund or are predicated to stay consistent over the upcoming two fiscal years. The budget calendar outlines key dates for the 2025 budget process. On July 10, there will be a review of the Mill Levy Funds, including the General Fund, Library, Auditorium, and Debt Service. The final review of the 2025 budget will take place on July 17, when the Commission will also consider exceeding the revenue neutral rate by resolution and direct the publication of the Revenue Neutral Rate and the 2025 Budget Public Hearing. The adoption of the 2025 budget is scheduled for September 4. City Manager’s Comments City Manager Brian Silcott updated the Governing Body on upcoming events in the City of Ottawa. Governing Body Comments Commissioner Crowley, Mayor Pro Tem Allen, and Mayor Skidmore expressed their gratitude to Dan Riney for his years of dedicated service. Announcements A. July 3, 2024 City Commission Meeting – 7:00 pm, City Hall – Cancelled B. July 10, 2024 City Commission Meeting – 4:00 pm, City Hall Adjournment There was no further business before the Governing Body, the Mayor declared the meeting duly adjourned at 4:47 pm. /s/ Melissa Reed Melissa Reed, City Clerk June 26, 2024 3