By ELLY GRIMM
• Leader & Times
The Liberal City Commission made quick work of its agenda Christmas Eve.
Up first for the agenda was discussion of amendments to the 2024 budget.
"As I'd said in a previous meeting, It is necessary to amend our 2024 Fiscal Year Budget that was adopted Sept. 26, 2023. The Notice of Budget Hearing was published Dec. 12, 2024," Interim City Manager Scarlette Diseker said. "This year, we're pleased to report there are only three funds that need to be amended, which I think shows proper budgeting, listening to our staff members, and execution in the budgetary process. With the Airport Utility Fund, the original adopted amount was $688,500 and requires an increase to $763,500, and that amendment is required to account for higher expenses due to grants received. With the Special Fire Fund, the original amount was $138,700 and requires an increase to $238,700, and that amendment is required to account for the new lease payment for the Rosenbauer pumper truck and chassis negotiated in April 2024. Finally, with the Special Highway fund, the original amount was $725,200 and requires an increase to $925,200, and that amendment is required to account for higher expenses incurred due to increased frequency of chip and crack seal for city streets."
Ultimately, the commission voted unanimously to approve Ordinance No. 4627 concerning the budget amendments.
Up next for the commission was discussion of the reclassification of delinquent accounts receivable and utility accounts.
"As per the agenda, commission approval is necessary to reclassify accounts receivable and utility account delinquencies more than 120 days past due, as these are not bookable, quality assets. We last reclassified delinquent accounts as of Dec. 26, 2023," Finance Director Kristyn Reust said. "The accounts receivable balance is composed primarily of non-utility amounts (mowing, property damage, city leases and roll-off trash charges) that we cannot assess to those who incurred them, as either the property ownership has changed or there is no property ownership available to assess the charges to. As we have been strictly enforcing monthly shut-offs for non-pay utility accounts, our overall delinquency rate has been favorable. Before utility service is reconnected, we collect the entire balance due, including any reconnection fees and additional billings. On a monthly basis, the utility accounts are sent to the Kansas State Setoff Program after they become 120 days delinquent. That delinquent classification percentage is calculated by comparing the total sales to the total delinquencies, and in 2024, that is 0.374 percent. That's slightly lower than last year, indicating there's both an increase in overall sales and a decrease in delinquent accounts, which is a really encouraging trend."
Ultimately, the commission ultimately approved a motion to reclassify the delinquent accounts receivable and utility accounts in the amount of $79,153.23.
Up next for the commission was discussion of the 2024 fiscal year transfers.
"Staff has identified the attached necessary Fiscal Year 2024 fund transfers, for which sufficient budget authority exists," Diseker said. "We do draft all of these in advance and try to project numbers to make sure we don't have to make any budget amendments after we do these types of things. Today is a great day for fiscal year transfers because we have made huge strides in this area since I got here in 2022. We have determined several projects that need to be closed which are carrying positive cash balances. In these cases, the funds will be returned to their original source, thereby increasing cash balances in several 1-cent Sales Tax funds before we make the regular year-end transfers out to the Construction Fund. One thing we are very proud of is the fact that we have the Construction Fund fully reconciled per project and balanced back to the cash total; therefore, you will notice that we aren't making estimated transfers this year. We are making exact dollar transfers to bring projects to zero at year end. If we continue to do this, we shouldn't end up with projects having positive cash balances at the time they are completed and capitalized, which makes the process more efficient overall. In total, we are transferring a total of $1,998,020.06 back to originating 1-cent Sales Tax funds from the 301 Construction Fund and $1,989,737.67 from 1-cent Sales Tax funds to the 301 Construction Fund for a net difference of +$8,282.39."
"Thank you very much, Scarlette, for cleaning up the books," Liberal Mayor Jose Lara said.
Ultimately, the commission unanimously approved the Fiscal Year 2024 fund transfers as presented.
The final item of new business for the commission was a purchase and sale agreement with Air Products.
After some more discussion, the commission ultimately unanimously approved the Purchase and Sale Agreement between the City of Liberal and Air Products, with the infrastructure costs coming from the 1-cent Sales Tax Fund 260 for Streets, Drainage, and Other Capital Improvements. Once approved by the Commission, the land sale and project is still contingent upon final FAA approval, which is expected within 60 days.
