On Monday, the City of Topeka’s Administrative and Financial Services Department released the proposed 2024 operating budget.
The total city budget for FY24 is $371.9 million. Of this, the city’s general fund budget is $116.2 million. The general fund is the city’s largest single fund, which supports many of the city’s municipal services.
The city’s budget continues to see cost increases as a result of inflation. As an example, according to the U.S. Department of Transportation Federal Highway Administration, the cost of building and maintaining highways has risen 50% since 2020. This, and other cost increases, has forced city departments to carefully monitor and propose budgets that allow the city to continue to provide high-quality services to its citizens.
“We have prepared a budget for FY24 that will allow for the city to provide needed services to the citizens of Topeka. The City of Topeka’s finance team did a phenomenal job balancing the needs of the present with the long-term sustainability of the future. We have worked to align city resources with the areas of greatest importance to our taxpayers. This budget will allow us to continue to move the City of Topeka forward,” said Freddy Mawyin, Chief Financial Officer.
Budget priorities
This is the second year the city has utilized the Outcome Based Budgeting (OBB) process.
At the beginning of the year, city staff engaged the Governing Body in a strategic planning process. The purpose of the strategic plan is to ensure city staff are aligning resources with the priority outcomes of the Governing Body and the community. During this process, the Governing Body established the city’s priority outcomes as Community Appearance, Growth, and Housing.
During the OBB process, city staff continue to work to align city resources with the priority outcomes. In addition to the three priority outcomes, a fourth area known as Operations was created, which captures many of the city’s functions that are statutorily or otherwise needed for the city to function properly.
In presenting the budget this year, the city focused on priority outcomes and their associated services.
Expenditure highlights
The largest portion of the general fund is personnel costs at 75% of the total budget. Personnel costs increased by about $6.6 million or 8.1% compared to the FY23 budget.
New to the FY24 budget is a proposed $500,000 that would be set aside for individuals who qualify for property tax rebates. This new program would be modeled after the state’s Homestead Refund program, and would provide further relief for those who need it.
Another new initiative is a proposed $1 million that would be dedicated to supporting the city’s unsheltered homeless neighbors. The city is in the process of working with a coach and facilitator, as well as community partners, as part of a task force to discuss the needs and gaps in the community related to our unsheltered neighbors. The proposed $1 million does not have a dedicated use yet, but would be made available to support recommendations made from the task force.
During the Capital Improvement Plan (CIP) process, the Governing Body made the decision to move $2.3 million worth of debt financing into the FY24 operating budget. This move will allow for long-term savings from not having to pay interest costs from debt financing.
Next steps
On July 18, the Governing Body will vote on whether or not to hold a vote to exceed the Revenue Neutral Rate from the previous budget year.
The Governing Body and city staff will host a Budget Workshop on Tuesday, July 25 at 6 p.m. at the Holliday Building. Community members can attend the workshop in person, or watch on the city’s Facebook page, the city’s Livestream, or on Cox Local Channel 4.
The budget will be discussed at the July 18, August 8, 15 and August 22 Governing Body meetings. Community members can make public comment at these meetings.
A public budget hearing will be held on September 5, where citizens will be given another opportunity to offer feedback on the budget. City staff anticipate the budget to be adopted on September 12.
The proposed budget can be viewed online at https://www.topeka.org/finance/budget/.