The year 2023 is nearly over and we all look forward to the New Year and all of the challenges and opportunities that are ahead. However, before we take the calendar off of the wall and replace it with the 2024 model, we will spend a few minutes looking back at the past 12 months.
As it has been for the past 15 or so years, City finances have been the major focus. The story of the financial crisis of the City is well known. I can visit with the employees who were with the City at that time, and they tell of the “horror” stories of the City financial crisis. I have heard of the employee furloughs and the days there was barely enough money in the City coffers to “make payroll.” It doesn’t pay to rehash what had occurred, but a pathway was found to turn it around. When I arrived here in 2015 to take the job of City Manager, the General Obligation (G.O.) Debt Load was over $115 million. And there was about $12 Million owed from loans made with the Kansas Department of Transportation (KDOT). Now the balance has dropped by about $65 million in G.O. and about $5 million in KDOT debt and we continue to move “South”. When I first arrived here, everyone was “Debt Numb”. Everyone knew that the City had been in a “bankruptcy status” and the road to recovery was long. Each year the City spends about $11 million in principal and interest payments for the debt. This drops about ½ million per year, but in a 2027, the number for annual debt payments drops dramatically and we should be in the “Red Zone” and in position to cross the “goal line”.
The key issue in addressing the debt is to keep focus that it is the most important issue we have to keep our eye on. During this era of paying debt down, we have been able to increase the budget to address street issues. (I know we have much more to do, but you have to find the proper balance of debt service, expenses and keeping property taxes in place.)
Yes the EMS issue is on the “front-burner”. The Junction City Fire Department providing EMS and rescue services in the entire in the entire county is the best option. No argument from anyone and we have heard at the recent City Commission meeting that those living in the rural area feel they are best served that way and they don’t want to change. The argument is how the cost is split between the City property tax payers and those who pay county property taxes. Remember everyone that pays property taxes for City functions, also pay County property taxes, but those in the rural area and in the other 2 cities don’t pay Junction City property taxes. The concern to the City is shifting about ½ million dollars from the County expenses to the City. The shift could mean a 3 mill increase in property taxes to just the those paying Junction City property taxes. The EMS services have grown and are top level. There is a cost for that. Should City property tax payers bear that cost by themselves?
During the past 10 years, the City Commission began and continue to address the water and wastewater systems. Phase I upgrades were made to the Water Plant and the 2 Wastewater Plants and now we are nearing the end of Phase II on the Water side and just getting a good start on the Wastewater side. In addition, the distribution system in water has been addressed and over $3 million has been spent addressing water lines the past 2 years. Yes, there is more to go. All of these upgrades were well overdue but being addressed now. Junction City is not the only City that deferred maintenance and has to catch up. Of course, these improvements cost money and that does cause rates to increase. The will pay dividends for the next 25 to 50 years. Trust me, other cities are facing the same challenges. Junction City is unique in the we have 2 wastewater plants. I don’t know many cities under the population of 75K that has 2 plants. Just the way it us, but basically doubles the cost of maintenance and operation.
One change in the past year was the dissolving of the Metropolitan Planning Commission (MPC). For many years the City and the County used the MPC for all zoning issues. Geary County made the decision to separate and now the City is standing up their own Planning Commission. 5 residents have agreed to be on that Board and will host their first hearings next month. We are working on getting that department developed but getting along right now.
Economic Development is always a topic. Thankful for all employees, but the Michelin Plant which started production years ago is “hitting it out to the park”. Yes there was some City incentives and will be for the next phase of growth, but that is the “game” that has to be played. Of course, the new proposed Taylor Road interchange will be a discussion topic as there will have to be investment for local roads and services. Some will disagree, but we have to decide if it is the path for the future. Yes, we hear there should be resurrection of Grant Avenue, but there are many, many obstacles to work with their. Remember Grant Street accessing Fort Riley is different than 25 years ago.
One change in the last couple of years is the ability to get new vehicles and equipment. Sometimes the biggest question is how soon can we get it? A couple of trash trucks that were ordered over 18 months ago are finally getting here shortly.
Get ready to put up a new calendar as we face 2024. Ready or not, here it comes.