HomeMy WebLinkAboutProposedFinPlan-2012.pptFINANCIAL AND FISCAL POLICIES
The City of Iowa City's financial policies set forth the basic framework for the overall fiscal
management of the City. These policies assist the decision-making process of the City Council.
These policies provide guidelines for evaluating both current activities and proposals for future
programs.
Most of the policies represent long-standing principles, traditions and practices, and follow
generally accepted accounting principles which have guided the City in the past and have helped
maintain financial stability.
OPERATING BUDGET POLICIES
The City will prepare an annual balanced budget for all operating funds.
The City will maintain a budgetary control system to ensure adherence to the budget and
will prepare monthly reports comparing actual revenues and expenditures to budgeted
amounts.
Operating budgets are established on a fundldepartmentlprogram basis.
A contingency account will be maintained in the annual General Fund operating budget to
provide for unanticipated expenditures or to meet unexpected small increases in service
delivery costs, budgeted annually at approximately 3/ of one percent of expenditures and
transfers out. The City Council will be informed semi-annually on staff initiated amendments
from the contingency account to the operating programs within the General Fund.
Budget amendments may be made throughout the year with approval of the Department
Director, Director of Finance and the City Manager. The City Council formally reviews and
approves all amendments processed by staff twice a year in AugustlSeptember and May.
Increases or amendments to operating budgets are made only in the following situations:
- emergency situations
- transfer from contingency
- expenditures with offsetting revenues or fund balance
- carry-over of prior year budget authority for expenses that had not been paid as of the end
of the fiscal year.
OPERATING BUDGET PREPARATION CRITERIA
General Guidelines
- Maintain the fiscal integrity of the City's operating and capital improvement budgets in order
to provide services and to construct and maintain the City's infrastructure.
- Present budget data to the City Council in a format that will facilitate annual budget
decisions based on a three-year planning perspective. Provide the City Council with a
summary of the three-year forecasts.
- Encourage citizen involvement in the annual budget decision-making process through
public hearings, informal meetings, budget briefs and related informational efforts.
Service Level Guidelines
- Deliver service levels which are consistent with the citizens' willingness to pay and the City's
available resources.
- Base decisions to reduce service levels or eliminate programs on City-wide priorities.
- Recognize that City employees are one of the City government's most valuable resources
and are essential to the delivery of high quality, efficient services.
Revenue Guidelines
- Property tax levy rates will not exceed the limits as established by the State of Iowa.
- Revise user fee rate structures to charge the costs of service provided to the benefiting
customers, while maintaining sensitivity to the needs of low income citizens.
- Support federal and state legislation which provides property tax relief. Oppose legislation
which imposes local service mandates without fiscal support.
Expenditure Guidelines
- Support responsible management efforts to increase productivity by providing resources for
office automation, preventive maintenance, risk managementlemployee safety, and
employee training.
The City will try to maintain a diversified and stable revenue system to minimize short-run
fluctuations in any one revenue source.
The City will attempt to maximize benefits from major revenue sources as a way of
maintaining a stable property tax rate.
The City will follow an aggressive policy of collecting revenues.
The City will establish all user charges and fees at a level related to the full cost (operating,
direct, and indirect) of providing the service, whenever practical.
The City will review licenses, fees, and charges annually to determine if the revenues
support the cost of providing the service.
Property tax funding for recreation activities will not exceed 60°,6 of operational costs with
the exclusion of capital outlay and other improvements.
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Parking, Refuse, Wastewater Treatment, Stormwater, Landfill, Broadband
Telecommunications and Water funds will be self-supporting through user fees.
- Rate adjustments will be submitted to the City Council by ordinance if state or locally
legislated, or by resolution (if not state or locally legislated).
The City will use up to 5°~ of the annual Road Use Tax allocation to fund employee benefits
for the Streets and Traffic Engineering personnel.
CAPITAL IMPROVEMENT PROGRAM BUDGET POLICIES
The City will develop amulti-year Capital Improvement Program (CIP), which will be
reviewed and updated annually, comply with City Council goals and be compatible with the
Comprehensive Plan whenever possible.
The complete multi-year CIP funding plan must be balanced each year by matching
projected expenditures with proposed revenue sources by fund.
Funding for projects should be obtained through borrowing from:
- bond market, general obligation or revenue bonds
- enterprise fund operations and reserves
- internal loans
The City may utilize General Fund cash balances to fund capital projects whenever
available and feasible. For the Airport, it is policy that the General Fund will match up to
$100,000 in grants received per year.
The City shall utilize available funding sources for capital improvements whenever practical
and feasible such as but not limited to:
- federal and state grant funds
- special assessments
- developer contributions
The City will maintain its physical assets at a level adequate to protect the City's capital
investment and to minimize future maintenance and replacement costs. The budget will
provide for the adequate maintenance and the orderly replacement of the capital plant and
equipment from current revenues when possible.
RESERVE POLICIES
The City will establish a contingency line-item in the annual General Fund operating budget
to provide for unanticipated expenditures or to meet unexpected small increases in service
delivery costs, budgeted at 3/ of one percent of expenditures.
Operating cash balances at fiscal year-end will be maintained at a level to ensure sufficient
cash flow throughout the fiscal year. General Fund cash balances will not go below 15%,
with a ceiling of 25%. Cash balances in excess of 25% will be considered for tax relief.
Reserves will be maintained in the Water, Wastewater and Parking Funds in accordance
with existing bond covenant provisions.
Reserves will be maintained for equipment replacement and for unexpected major repairs in
the following areas: Parking, Wastewater, Water, Landfill, Transit, Broadband
Telecommunication, Equipment Replacement, Information Technology Services, and
Central Services as well as Library Computer Equipment and Parkland Acquisition and
Replacement.
Reserves, based on actuaries, will be maintained for the Risk Management Loss Reserve,
Medical and Dental Insurance Funds.
All City trucks, cars and necessary accessories will be maintained on a replacement cost
basis each year. A separate reserve fund has been set up to fund these replacements.
Additions to the fleet are made through allocations in the annual budget. Fire Department
vehicles and Transit buses will be purchased through the issuance of debt.
All general obligation debt will be paid from the Debt Service Fund. General Obligation debt
applicable to Enterprise Fund projects will be paid out of the Debt Service Fund, but will be
abated from revenues from the respective Enterprise Fund(s).
INVESTMENT POLICIES
Disbursement, collection, and deposit of all funds will be managed to insure maximum
investment opportunity for City funds.
The City will strive to maximize the return on its investment portfolio, with the primary
objective of preserving capital in accordance with the City's investment policy and prudent
investment practices.
All City funds not restricted by bond issue covenants will be pooled for investments, with
interest allocations made monthly.
DEBT POLICIES
The City will confine long-term borrowing to capital improvements and Community and
Economic Development initiatives. Short term borrowing will be applicable for large dollar
rolling stock (buses, fire apparatus) purchases and computer systems.
Total general obligation debt will not exceed 5°~ of total taxable assessed value of real
property.
The debt service property tax levy shall not exceed 30% of the total property tax levy.
The City will follow a policy of full disclosure on every financial report and bond prospectus.
The City will use "pay as you go" financing to fund general capital improvement projects,
whenever feasible and practical.
COMPENSATED ABSENCES
Administrative employees hired prior to June 15, 1983 and all other employees hired prior to June
29, 1985, upon death, retirement or termination (except firefighters) are entitled to be paid for one-
half of the total accumulated sick leave hours at the current effective hourly rate for that employee
up to the sick leave payout amount calculated as of June 28, 1985, whichever is less.
After June 28, 1985, employees accumulate vacation, sick leave, and other benefits at various
rates depending on bargaining group and length of service. Employees are paid for their total
unused vacation time upon death, termination (except firefighters) or retirement. However, sick
leave can only be used during employment. The cost of compensated absences are recognized
when payments are made to employees and the City amends the budget at that time.
ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICIES
Monthly financial reports will be prepared
A three-year financial plan for all operating funds will be prepared by the City Manager and
presented to the City Council for their review.
A Multi-Year Capital Improvement Program budget will be prepared, reviewed and revised
annually.
An independent audit will be performed annually for all City funds.
The City will produce a Comprehensive Annual Financial Report (CAFR) in accordance with
generally accepted accounting principles as outlined by the Governmental Accounting
Standards Board.
PURCHASING POLICIES
Purchases for all City departments for the City of Iowa City shall be in accordance with the
City Procurement PolicylPurchasing manual.
Methods of source selection are as follows:
Public Improvements
Competitive sealed bidding shall be used for Public Improvement Contracts of $100,000
or greater (Code of Iowa) or Road Projects of $65,000 or greater. This process shall
consist of:
Public hearing on plans and specifications
Approval of plans and specifications by City Council or Commission
Invitation for bids
Bid opening
Bid acceptance and bid evaluation
Bid award -City CouncillCommission authorization
The competitive quotation process is required for public improvement projects estimated
between $65,000 and $100,000. This process shall consist of:
Notice to bidders
Bid opening
Bid evaluation
Bid acceptance and award by City Manager or Commission
Notice of award in minutes of next meeting of City Council or Commission
The informal quotation process is required for public improvement projects and street,
bridge and culvert projects under $65,000. This process shall consist of:
Invitation to bid
Bid opening
Bid evaluation
Bid acceptance and award by City Manager over $5,000, Department Director over
$1,500 or Division Head under $1,500
-Professional Services
The consultant selection procedures guide all City departments involved in procuring
engineering, architectural, and other professional services. Within approved budgets, the
City Manager may approve contracts up to $50,000 and the City Council approves
contracts over $50,000.
-Major Purchases
The Purchasing Division operates a "voluntary purchasing" system rather than a complete
"centralized purchasing" system. Under the voluntary system, departments obtain
standard operating items, within approved budgets, utilizing Purchasing procedures. The
Purchasing Division reviews various categories of merchandise and services and makes
recommendations for consolidation and standardization of purchases to reduce
duplication and overall costs.
-Emergency Procurement
In the event of an emergency, supplies, services or construction may be purchased
without regard to normal purchase selection procedures to protect the health and welfare
of the public. The City Manager shall keep the City Council informed of the extent of the
emergency.
-GiftslConflict of Interestllnterest in Public Contracts
Conduct shall be in accordance with the Code of Iowa -Chapters 68B.22 Gifts, 331.342
Conflict of Interest and 362.5 Interest in Public Contract. A City officer or employee shall
not have an interest, direct or indirect, in any contract or job of work or material or the
profits thereof or services to be furnished or performed for the officers or employees of the
City.
RISK MANAGEMENT POLICIES
It shall be the policy of the City of Iowa City to assume the risk of property damage, liability
and dishonesty in all cases in which the exposure is so small or dispersed that the loss
would not significantly or adversely affect the operations or financial position of the City.
Insurance will not be purchased to cover loss exposures below prevailing
deductiblelretention amounts of current insurance held by the City of Iowa City, unless such
insurance is required by statute or by contact, or in those instances in which it is desirable to
obtain special services, such as inspection or claim adjustment services in connection with
insurance. The deductiblelretention amounts will be reviewed once annually by the Director
of Finance and the Risk Manager to ensure appropriateness of the amounts.
Insurance will be purchased where possible against all major exposures which might result
in loss in excess of the City's insurance reserve through the purchase of the following types
of insurance:
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-All risk insurance on real and personal property.
- General liability insurance.
-Automobile liability insurance.
- Fidelity and crime insurance.
- Catastrophic workmen's compensation insurance.
The City will self-insure in those instances where the cost of insurance is so high that it
would be more cost effective to assume the risk.
Real property will be insured on replacement cost basis, as determined by a competent
appraisal service, against as wide a range of perils as possible. The value will be reviewed
once annually by the Risk Manager and the City's insurance advisor.
Loss prevention recommendations made by insurance companies, the state fire marshal or
local fire authorities will, whenever possible, be implemented. In those cases in which such
recommendations are not followed, a written report in which an explanation orjustification is
made will be filed with the Director of Finance and the City Manager within 30 days of
receipt of the report.
Insurance will be purchased only through licensed agents or agencies who have the staff
and technical competence to adequately service the insurance provided.
Insurance will be placed only in insurance companies rated A+ or A in Bests. Insurance
placed in other companies will require a written report of the particulars, such report to be
filed with the Risk Manager.
The administration of the risk management policy will be a responsibility of the Risk
Manager. Such responsibility includes placement of insurance coverage, maintenance of
property appraisals and inventories, processing of claims and maintenance of loss records,
and supervision of loss prevention activities.
Settlement of claims are handled through the Risk Management Division andlor City
Attorney Office. The Risk Manager is authorized to settle claims up to $3,000, the City
Manager authorizes claim settlements between $3,000 and $20,000 and City Council
approval is needed for settlements above $20,000.
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FINANCIAL PLAN ANALYSIS
I. PROPERTY TAXES
Property taxes are the largest revenue source for the City's General Fund, accounting for sixty-two
percent (62%) of FY2012 revenue. There are a number of factors which determine the City's tax levy
each year: property valuations by class, the annual Assessment Limitation Order or rollback, TIF district
valuations and rebates, statutory limits on individual tax levies, the City's Financial and Fiscal Policies,
other financing sources and projected expenditures.
A. VALUATIONS:
1. 100% Assessment -Property valuations are set by the City and County Assessor. State law
requires that all real property be reassessed every two years, specifically in odd-numbered
years. Since 1995, valuations within the Iowa City corporate limits have increased an average
of ten percent (10%) in revaluation years and two percent (2%) in non-revaluation years.
Valuations reported by the Johnson County Assessor for January 1, 2010, serve as the basis
for estimating property tax revenue in FY2012. Their report indicates a 1.34% increase in total
assessed value from $4.38 billion to $4.44 billion in the last year.
2. Assessment Limitation Order 1 Rollback -The State of Iowa has a statutory growth limitation
of four percent (4%) annually on taxable property valuations by class (residential, commercial,
industrial, etc). Each year, the Department of Revenue's Assessment Limitation Order sets a
`rollback' value by class which, when applied, determines taxable valuations. An additional
growth restriction is applied to the residential valuations, limiting growth in taxable value to
agricultural valuations. In other words, the percentage change in taxable valuations for urban
residential property each year is limited to either four percent (4%) or the growth in agricultural
property, whichever is lower.
The following graph illustrates the impact of the rollback on taxable valuations. In FY2003 the
residential rollback exempted $.75 billion of Iowa City's residential assessed valuation. In
FY2012 the residential rollback will exempt $1.6 billion of residential assessed valuations. The
rollback for FY2012 is 48.5299% compared to FY2011 residential rollback of 46.9094%.
Taxable vs. 100% Assessed Valuations
4.60
4.10
b+ 3.60
3.10
m
2.60
2.10
1.60
1.10
0.60
0.10
X03 fop` `~~' ~cf° ~d~ .~~ ~~'
Fiscal Year {FY)
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~~~ 100%
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3. TIF District Valuations & Rebates -Once an Urban Renewal Area is established, developers and
individual projects may negotiate for Tax Increment Financing agreements in which they receive a
rebate on annual taxes paid, provided the growth in property valuations for that project and district
provide sufficient funding. The terms for individual agreements vary by project but when they expire
(or reach maximum rebate), the TIF district can be released for taxation.
4. Taxable Valuation -Iowa City's taxable valuation for FY2012 has increased 3.43% for the debt
service levy and 3.16% for non-debt service levies over FY2011.
B. PROPERTY TAX LEVY RATES
The FY2012 proposed property tax rate for the City of Iowa City is $18.139 per $1,000 of taxable
valuation, and higher by 2.15% than the FY2011 tax rate. The following graphic illustrates the
combined effect of annual changes in assessed valuations, assessment limitations (rollback) and the
City levy rate.
Estimated Property Tax on $100,000 Residential Valuation
(Iowa City portion}
FY2012
$880
FY2011 FY2012
Assessed Valuation $ 100,000 $ 100,000
Taxable Valuation $ 46,909 $ 48,530
City Levy $ 17.756 $ 18.139
Property Taxes $ 833 $ 880
Iowa City's FY2012 levy rate of $18.139 is comprised of a number of individual levies, as provided for
in the Code of Iowa Section 384 for specific purposes. Following is a chart summarizing the
individual levy rates by fiscal year, followed by a brief description of each.
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The City's property tax requests for FY2012 through FY2014 including the FY2011 certified tax
request, are as follows:
General Fund ; ,~,~ ~,
Tax Levies:
General $ 21,746,140 8.100 $ 22,433,634 8.100
Transit $ 2,550,473 0.950 $ 2,631,105 0.950
Tort Liability $ 1,118,503 0.417 $ 961,987 0.347
Librar $ 724,871 0.270 $ 747,788 0.270
Subtotal: $ 26,139,987 9.737 $ 26,774,515 9.667
Special Revenue Levies:
Emergency $ - 0.000 $ - D.D00
Em to ee Benefits $ 9,615,177 3.581 $ 10,420,146 3.762
Subtotal: $ 9,615,177 3.581 $ 10,420,146 3.762
Debt Service $ 12,028,775 4.438 $ 13,200,620 4.709
~;
d
'
'~ w
;
;
c<
Change from 5.28%
-0.54 /°
°
5.46 /°
°
2.15 /°
°
rior ear:
A land Lev $ 4 608 3.004 $ 4 608 3.004
Total Property Taxes $ 47,788,547 ---- $ 50,399,888 ----
.- ~~~
General Fund
Tax Levies:
General $ 22,876,026 8.100 $ 23,326,885 8.100
Transit $ 2,682,991 0.950 $ 2,735,869 0.950
Tort Liability $ 1,022,417 0.362 $ 1,073,152 0.373
Librar $ 762,534 0.270 $ 777,563 0.270
Subtotal: $ 27,343,968 9.682 $ 27,913,469 9.693
Special Revenue Levies:
Emergency $ - 0.000 $ - 0.000
Em to ee Benefits $ 11,811,175 4.182 $ 12,957,854 4.499
Subtotal: $ 11,811,175 4.182 $ 12,957,854 4.499
Debt Service $ 12,954,739 4.531 $ 13,968,853 4.789
® .®°
i
B
Change from
3.40%
1.41 /°
5.24 /°
3.19 /°
°
rior ear:
A land Lev $ 4 608 3.004 $ 4 608 3.004
Total Property Taxes $ 52,114,490 ---- $ 54,844,785 ----
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The general property tax levy of $8.10 is to be used to support General Fund services such as those
provided by the Police and Fire Departments, Library, Senior Center, Parks and Recreation. This levy
cannot exceed $8.10 per $1000 of taxable assessed valuation per State law.
The Library tax levy of $.27 was voted in by a majority of the residents in 1991. The initial levy was used to
expand Library services and continues to maintain that level of service.
The Transit levy of $.95 is a "general" levy for transit operations which cannot exceed $.95 per $1,000 of
taxable assessed valuation.
The Tort Liability levy has no maximum and is based on estimated insurance premiums and claim losses
within the self-insured retention. The levy rate for FY2012 is estimated at $0.347, compared to $0.417 for
FY2011. The City's self-insured retention amount is $400,000 per occurrence for worker's compensation,
$500,000 for liability claims and $100,000 for city property claims.
The Employee Benefits property tax levy is used for the employer cost of the following benefits for
employees within the General and Road Use Tax Funds:
• Health Insurance
• Life Insurance
^ Disability Insurance
• Worker's Compensation insurance premiums and claims
• Unemployment Compensation
^ Social Security (FICA - 7.65%)
• Iowa Public Employees Retirement System costs (IPERS)
• Municipal Fire and Police Retirement System of Iowa (MFPRSI)
The Employee Benefit levy for FY2012 is estimated at $3.762, compared with the FY2011 levy of $3.581.
This is projected to increase to $4.182 in FY2013 and $4.499 in FY2014 primarily due to anticipated
adjustments in the employer's contribution rate for Municipal Police and Fire Retirement System of Iowa
(MFPRSI). This rate is set annually by the state & based on an actuarial review. Information from
MFPRSI in October, 2010, indicates that the city's contribution rate to the Police and Fire Pension Fund is
expected to increase to 37.33% within the next four years. The employer contribution rate for FY2012 is
24.76 %.
The Debt Service levy provides funding for principal and interest payments on outstanding general
obligation bonds. In FY2012, this levy is $4.709, compared with $4.438 in FY2011.
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II. GENERAL FUND
General Fund is the City's main operating fund and includes activities in the following areas: general
government administration, public work administration, public safety, cultural and recreational activities,
community and economic development.
A. GENERAL FUND -REVENUE
General Fund revenue is projected at $59,495,392 million in FY2012. A comparison of total General
Fund revenue between fiscal years is challenging due to a number of one-time transactions and
events. However, a more useful discussion by revenue classification is provided on the following
pages.
FY2010 FY2011 FY2012 FY2013 FY2014
Actual Amended Proposed Projected Projected
1. Property Taxes 33,684,964 35,103,007 36,800,964 38,507,434 40,237,915
2. Other City Taxes 8,149,967 10,348,001 9,593,740 9,601,148 1,788,486
3. Licenses & Permits 1,214,129 1,335,333 1,211,428 1,285,928 1,222,428
4. Use Of Money & Property 484,135 131,394 114,396 114,396 114,396
5. Intergovernmental 4,111,460 3,697,303 3,845,850 3,931,564 3,880,085
6. Charges For Services 5,755,338 5,773,888 5,891,704 5,931,262 5,971,411
7. Miscellaneous 2,211,600 1,680,824 1,572,371 1,573,640 1,574,928
8. Other Financing Sources 1,609,443 5,818,566 465,479 775,085 1,018,471
Total Revenue: $57,221,036 $63,888,316 $ 59,495,932 $61,720,457 $55,808,120
% change from prior year 28.1% 11.7% ~.9% 3.7% -9.6%
FY 2012 Budget
General Fund Revenue other city
$59,495,932 Taxes
16%
Licenses ~
Permits
2%
Intergovt.
s%
Use Of Money 8~
Property
~ 1%
Charges For
Services
10%
Prope rty Taxes
62%
Miscellaneous
3%
Other Financing
Sources
1%
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General Fund revenue is summarized into eight major categories. An analysis of each
category follows:
1. Property Taxes -Property tax revenue of $36.8 million is the primary funding source for General
Fund operations, providing an estimated sixty-two percent (62%) of total revenue in FY2012.
2. Other Citv Taxes -This category, estimated at $9.6 million in FY2012, includes local option sales
tax revenue of $7.8 million, $724,000 in Hotel Motel Taxes, $448,000 in gas and electric excise
taxes, and $565,000 in utility franchise taxes.
a) Local Option Sales Tax: A one percent (1 %) sales tax was approved by voter referendum on
May 5, 2009, to provide funding for "remediation, repair and protection of flood-impacted public
infrastructure". Sales tax revenue is being receipted into the General Fund and transferred to
the following capital projects designated by city Council as priorities under this definition:
relocation of facilities at North Wastewater, elevation of North Dubuque Street and the
reconstruction of Park Road Bridge. The sales tax went into effect on July 1, 2009.
b) Hotel Motel Tax: This revenue source is astate-administered tax. Estimated at $724,000 in
FY2012, the seven percent (7%) tax on gross hotel/motel room rental receipts is distributed as
follows:
Convention & Visitor's Bureau 25.00%
Police Patrol 47.50%
Parks & Recreational Facilities 27.50%
Total Hotel Motel ?% Tax 100.00%
c) Gas and Electric excise taxes on utility companies: The Gas and Electric Excise tax is a state-
legislated reclassification from property tax to usage tax. The tax is based on property tax rates
and valuations supplied by the State Department of Revenue & Finance.
d) Utility Franchise Taxes on utility customers: Senate File 478 was enacted by the Iowa state
legislature during its 2009 session, establishing cities' right to impose a franchise tax on gas
and electric utilities. On February 16, 2010, the Iowa City Council passed and approved an
ordinance establishing a one percent (1 %) tax' to be expended for the following purposes:
1) Inspecting, supervising and otherwise regulating the MidAmerican Energy
Company's gas and electric franchises.
2) Public safety, including the equipping of fire, police and emergency services.
3) Public infrastructure to support commercial and industrial economic development.
Of the $840,000 estimate for FY2012, $565,000 will go to the City's General Fund for
maintenance of the right-of-way and operational costs associated with Fire Station #4. The
remaining $275,000 is for recurring Capital Improvement Projects (CIP) in the right of way.
3. Licenses & Permits -
This category consists of revenue received for building and rental housing permits/inspections,
plumbing license and taxi license fees; beer, liquor and cigarette permit license fees (state
regulated), sign permits, burial permits, animal licensing and some miscellaneous fees. The
FY2012 budget for Licenses and Permits is estimated at $1.2 million.
City Council approved a 19.5% increase in rental inspection permit fees to be effective July 1, 2009.
The increase is projected to generate an additional $120,500 annually, when averaged over the
next two-year inspection cycle, FY2011-2012.
' On December 7, 2009, the Iowa City Council passed and approved an ordinance establishing the franchise tax on gas and electric
utilities at two percent (2°~~. During the 1=Y2011 budget work sessions, City Council directed staff to revise the three-year financial plan
assuming the franchise tax to be one percent (1°~).
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4. Use of Money 8~ Property -This revenue source consists of interest income. The category is
budgeted at $114,346 in FY2012, down significantly from prior years due to the decrease in
interest income and the compounding effect as investments come due and are reinvested at a
lower rate.
5. Intergovernmental revenue is estimated at $3.8 million in FY2012, including state and federal
grants, 28-E agreements and contracts with local governmental entities.
The majority of intergovernmental revenue is the result of 28E agreements with local entities for
services provided to area residents, as shown in the following schedule. The largest of these
agreements is for fire protection services to the University of Iowa, estimated at $1.6 million in
FY2012, with $1.5 million receipted into the General Fund. The remainder is deposited into the
Employee Benefits Fund as reimbursement for a percentage of Fire employee benefits.
FY2010 FY2011 FY2012 FY2013 FY2014
Intergovernmental Funding Actual Amended Proposed Projected Projected
Local Governmental: 28E Agreements
Coralville, Johnson County & Other
Governments -Animal Services $ 81,284 $ 112,722 $ 92,500 $ 92,500 $ 92,500
IC Comm. Schools -Mercer Pool 101,009 100,384 104,039 104,039 104,039
County, Univ Heights, Hills -Library 417,732 419,606 430,263 430,263 430,263
Johnson County -Joint Emergency
Communication Center (JECC) Reimb. 204,771 - - - -
Johnson County -Senior Center 75,000 75,000 77,250 77,250 77,250
University Heights -Transit Services 32,310 29,804 33,279 33,279 33,279
University Heights -Emergency Radio 42,275 - - - -
University of lovva -Fire Protection 1,312,620 1,382,068 1,487,372 1,572,561 1,520,549
University of lovva -Library Services - 35,000 35,000 35,525 36,058
Local Governmental Revenue: 2,267,001 2,154,584 2,259,703 2,345,417 2,293,938
State Revenue:
Monies & Credits 28,951 13,000 13,000 13,000 13,000
Transit Assistance 355,099 364,492 355,099 355,099 355,099
Transit-Federal Pass-thru 236,438 60,832 91,035 91,035 91,035
Public Safety G rants 194,171 158, 240 191, 875 191, 875 191, 875
Total State Revenue: 814,659 596,564 651,009 651,009 651,009
Federal Revenue:
Transit FTA Operating Grants 904,110 873,006 904,110 904,110 904,110
Public Safety Grants 12,070 43,093 17,203 17,203 17,203
FEMA Assistance !Reimbursements 108,745 - - - -
Disaster Individual Assistance - - - - -
Total Federal Revenue: 1,024,925 916,099 921,313 921,313 921,313
Misc. Local Govt. Share -Joint Public Safety 2,534 27,977 12,610 12,610 12,610
Misc. Other Intergovernmental 1,310 960 190 190 190
Total - Intergovernmental Funding: $ 4,110,429 $ 3,696,184 $ 3,844,825 $ 3,930,539 $ 3,879,060
19
6. Charges for Services are estimated at $5.9 million in FY2012. Included within this category is an
administrative chargeback of $2.7 million to the City's proprietary funds for services rendered by
administrative divisions. Other divisions with fee-based services include: Transit, Parks and
Recreation, Police (special events, contracted services), Fire (inspections), Housing & Inspection
Services, Animal Control and Cemetery services.
7. Miscellaneous Revenue -Miscellaneous revenue has dropped from $2.2 million in FY2010 to $1.6
million in FY2012. This category includes a variety of revenue sources, the largest is parking fines,
which are budgeted at $542,000 for FY2012. Other miscellaneous revenue includes magistrate court
fines and surcharges related to code enforcement ($280,000) and library fines ($205,000).
8. Other Financing Sources include proceeds from the sale of assets, allocation of funds to equipment
replacement reserves, and operating support from other funds for specific staff positions. The category
is budgeted at $465,000 in FY2012.
Transactions that occurred within this category in prior years including the following: capital project
funding of $3.9 million to 420~h Street infrastructure, and $1.6 million for Fire Station #4 construction.
These transactions were financed by loans from the Landfill fund. Future years require debt payments
from the General fund to the Landfill fund.
20
CITY OF IOWA CITY, IOWA
Financial flan for 2012 - 2014
fund: 1000 General Fund Summary
2010 2011 2012 2013 2D14
Actual Estimate Budget Projection Projection
Beginning Balance 18,25D,898 28,470,284 2D,344,8D5 19,084,913 19,631,720
Property `Taxes 33,ffi84,964 35,103,007 36,800,964 38,507,434 40,23"'7,97x5
Otvher ;:ity ".faxes 8, 1,49, 96 % :s.0, 348, 001 9, 593, 7eaD 9, 601, 1~~8 1, 788,486
Licenses And Permits 193,494 218,822 186,679 186,679 186,679
Construct. Permit & Inspect. Fees 1,020,635 1,116,511 1,024,749 1,D99,249 7.,035,749
Federal Intergovt. Revenue 1.,024,925 916,099 921,313 921,313 921,313
Property Tax Credits 39,269 24,739 24,929 24,929 24,929
State 28e agreements 1-, 31.2, ci20 1, 41'7, 068 1, 522, 372 1, 608, 086 ~., s5o, 60`7
Other State Grants 785,708 583,564 638,009 638,009 638,009
Local Govt 28e Agreements 958,035 766,453 749,941 749,941 749,941
Building & Development Fees 256,572 345,648 283,847 283,847 283,847
°1":~ansit: 7{ees 1, 034,'714 zs58, 904 1., 034, 714 1, 034, 714 '., D34, 714
Culture And Recreation 712,554 %00,494 71&,841 715,841 "716,841
Misc. Charges For Services 209,481 213,5D5 27.0,889 211,401 211,917
Miscellaneous Rev. 45
Code Enforcement 30fl,219 361,36D 283,581 283,581 283,581
Parking Fines 541,723 592,900 541,723 541,723 541,723
Library Fines & Fees 204,827 213,470 204,827 204,827 204,827
Contrib & Donations 61,311 37,725 30,981 30,981 30,981
Animal Adoption 11,270 16,D00 11,270 11,270 11,270
Misc Merchandise 50,727 64,548 69,748 69,748 69,748
T~^tr~x-city L"raa,"ges 2,4:31,1.°0 2,757,283 2,687,572 2,'72'7,987 2,768,908
Other Misc Revenue 272,453 228,275 261,142 261,142 26:1.,142
Special Assessments 1,841
Interest Reveszuea 45x,239 81,500 87,500 87,x00 87,500
Rents 448,457 443,042 448,457 448,457 448,457
Pkg Ramp Revenue 783,086 629,211 655,582 655,582 655,582
Royalties & Commissions 29,861 25,621 26,983 26,983 26,983
Disposal. Of Assets 688,851 71,000 45,500 45,500 45,50D
Road Use Tax 62,966 64,41D 69,996 70,582 73,07$
Intrafund Reserve Transfers 984,789 87,422 216,398 523,543 760,6D3
From Water Operations 19,561 20,438 23,034 23,784 25,316
From Wastewater Operations 19,561 20,438 23,034 23,784 25,316
Fram Airport Operations 9,781 10,219 11,517 11,892 12,658
From Broadband 55,000 55,000 55,DDD 55,000 55,000
From TC Housing Authority 18,000 18,Ofl0 18,ODD 18,000 18,000
Transfers From Go Bonds 281,893
7:nterfund Loans 5,452,639
Misc Transfers In 57,946 19,000 3,000 3,000 3,000
Loan Repayments 15,492 12,000 12,000 12,ODD
Total Receipts 57,221,D36 63,888,316 59:495,932 51,72D,457 55,8D8,12D
Personnel 32,963,"7D6 35,294,5:26 38,294,991 38,$63,971 40,667,{)86
Services $,606,791 10,029,470 9,583,797 9,418,546 9,335,449
Supplies 1,896,619 2,628,177 2,514,178 2,520,775 2,544,783
Capital Outlay 1,732,472 2,026,368 1,163,094 1, 085,2D1 1,024,418
T'ransiers Out 1,802,062 21,665,354 8,814,764 8,908,157 1,337,482
Contingency 37D,000 385,000 387,000 390,000
°I`ata2 Ependitaxres 47,D01,650 72,013,795 6D,755,824 61,173,650 55,299,218
Ending Balanae 28,470,284 2D,344,8D5 19,D84,913 19,631,720 20,140,622
Restricted. / Committed JAssic~ned 12,143,024 5,261,325 5,529,658 6,1D5,09D 6,9'?0,693
L7nasszgned Balance 16,327,26D 15,083,480 131555,255 13,526,630 13,219<929
~ of Expenditures 35 ~ 21 ~ 22 ~ 22 ~ 24 ~
21
B. GENERAL FUND -EXPENDITURES
The General Fund expenditure budget in FY2012 is $60,755,824. A comparison of expenditures
across fiscal years is challenging due to a number of one-time transactions and events as
discussed by major expenditure classification on the following page.
FY2010 FY2011 FY2012 FY2013 FY2014
Actual Amended Proposed Projected Projected
1. Personnel 32,963,706 35,294,426 38,294,991 38,863,971 40,667,086
2. Services 8,606,791 10,029,470 9,583,797 9,418,546 9,335,449
3. Supplies 1,896,619 2,628,177 2,514,178 2,510,775 2,544,783
4. Capital Outlay 1,732,472 2,026,368 1,163,094 1,085,201 1,024,418
5. Other Financial Uses 1,802,062 21,665,354 8,814,764 8,908,157 1,337,482
6. Contingency - 370,000 385,000 387,000 390,000
Total Expenditures: 47,001,650 72,013,795 60,755,824 61,173,650 55,299,218
°/a Change 8.7% 53.2% -15.6% 0.7% -9.6°/a
FY2012 Proposed Budget
General Fund Expenditures by Category
$80.0
$70.0
$60.0
~_
(~ $50.0
0
~ $40.0
0
c
_o $30.0
$20.0
$10.0
$0.0
^ Other Financial Uses
^ Capital Outlay
^ Supplies
p Services
p Personnel
FY2010 FY2011 FY2012 FY2013 FY2014
Fiscal Year (FY)
22
1. Personnel -Personnel costs include salaries and benefits, including health, life, and disability
insurance, employer share of FICA and IPERS, and Police/Fire MFPRSI retirement contributions.
Personnel costs account for approximately sixty-three percent (63%) of budgeted expenditures within
the General Fund in FY2012.
a) Collective Bargaining: Wages and benefits for most employees are determined by collective
bargaining agreements with one of three unions: AFSCME (Local #183), the Police Labor Relations
Organization (PLR) of Iowa City, and the Iowa City Association of Professional Fire Fighters, IAFF,
AFL-CIO (Local #610). The AFSCME and Fire contracts for FY2012 include cost of living
adjustments (COLA) of 1.35% in June, 2011 and 1.5% in December, 2011.
Administrative, confidential, supervisory and temporary employees specified in Chapter 20 of the
Code of Iowa are excluded from the unions and their respective agreements. Salaries and benefit
appropriations for these employees are determined by the City Council upon the recommendation of
the City Manager. Cost of living adjustments have been approved at the same rate as union
employees for FY2012.
b) Retirement Contributions: In recent years, the Iowa Public Employees' Retirement System (IPERS)
increased the combined contribution rate by a half a percent (0.5%) annually. With a 60!40 split
between employer and employee, the employer share will increase from 6.95% in FY2011 to 8.07%
in FY2012.
The Municipal Fire & Police Retirement System of Iowa (MFPRSI)'s Board of Trustees sets the
annual contribution rate for public entities, based on independent actuarial opinion. The rate for
FY2012 has been set at 24.76% and is expected to increase to 29.31% by FY2013 and 37.33% by
FY2014. The employee contribution is currently fixed at 9.40%. As a result of the unusual increase
and unbalanced contribution formula, the Iowa League of Cities is currently advocating for
legislative changes to the system.
c) Other Benefits: An increase in the employee contribution towards health insurance was negotiated
into the FY2012 union contracts. Health insurance costs were projected to increase three percent
(3%) in FY2012, and six percent (6%) in FY2013 and 2014.
d) 27r" Pay Period - FY2012: An additional $1.1 million is budgeted in FY2012 due to a 27th pay
period during the fiscal year. This occurs once every eleven years as dictated by how pay
periods span the beginning /end of each fiscal year. The 27~h Pay Period is proposed to be
funded using General fund cash balance.
2. Services -Expenditures are budgeted at $9.6 million. The Finance Department's projections for
FY2012 are three percent (3%) over FY2010 actuals, with a one and one-half percent (1.5%)
increase in both FY2013 and FY2014. Items included in this category include: electric and gas utilities;
software/hardware maintenance agreements; other technical services.
Other operating costs included in this category which have more specific inflationary guidelines
include self-insured loss reserve funding; liability, fire & casualty insurance premiums; professional and
consultant services; internal service fund charges (ITS, Equipment and Central Services); training &
education; building and equipment repair and maintenance services; vehicle and equipment rentals.
23
Non-operating costs in this category include Aid to Human Service Agencies, Community Event
Funding, support to the Iowa City Coralville Convention & Visitors Bureau, and Community and
Economic Development Assistance, as follows:
$292,224 Aid to Human Service Agencies
$110,162 Community Event /Program Funding
$180,982 ICCVB-Community /Economic Development Assistance
$100,000 Economic Development Assistance
$150,000 Downtown Co-Work Space
3. Supplies -Supplies consist primarily of commodities that are consumed or depleted, such as office
and cleaning supplies, vehicle fuel and materials for repair and maintenance of buildings, streets, and
equipment. The Finance Department's projections for FY2012 supplies were estimated to be three
percent (3%) over the FY2010 budget, with a one and one-half percent (1.5%) increase for both
FY2013 and FY2D14.
4. Capital Outlay -General Fund capital outlay is budgeted at $1.2 million in FY2012 and includes
police vehicle replacements, library materials, operating equipment, and building maintenance and
improvements.
5. Other Financial Uses -This category is budgeted at $8.8 million in FY2012. Transfers-out include
local option sales tax funding for elevation of North Dubuque Street ($3.6 million) and relocation of
North Wastewater ($4.2 million). The FY2011 budget (significantly higher at $21.7 million) includes
project funding for these two projects in addition to infrastructure along 420th Street, and construction
of Fire Station #4.
6. Contingency use of General Fund cash is budgeted at '/4 of 1 % (approximately $385,000) in
FY2012.
24
CITY OF IOWA CITY, IOWA
GENERAL FUND
EXPENDITURES SUMMARY BY DIVISION
Budget for 2012 - 2014
Activity
2D10
Actual
2011 2012 2013 2014
Budget Budget Projection Projection
Center: 411210
Center: 421550
Center: 425800
Council
Clerk
Attorney
Manager
Relations
ce Dept Administration
y, Insurance
ildings
Activities
al Administration
vement Project Funding
7,
tion 9,
on 5,
r Operations & Adminis
Deer Control
HIS Department Administration
Building Inspection
Housing Inspection
Public Works Administration
Energy Conservation
Engineering
Streets Maintenance
Parks & Rec Admin
Recreation
Parks
Forestry Operations
Cemetery Operations
CBD Maintenance
Library
Library - Other
Senior Center
PCD Department Administration
T7rban Planning
Neighborhood Services
Public Art
Community Development - Nan Grant
Economic Development
Storm Damage
8,039
230,764
36,912
422
879,508
2,172
3.09, 137
2,544,298
2,650,137
376,980
391,937
447,381
5,265,655
45,457
766,080
261,230
372,688
120,564
7,951
360,726
331,215
304,693
33,DOD 33,836 34,268 35,752
155,831 171,496 131,887 132,282
452,290 SS4,D75 486,675 570,420
644,602 675,608 685,229 715,113
530,527 572,562 574,138 590,398
537,365 483,131 494,385 518,855
407,987 412,354 413,881 426,070
722,093 844,830 851,485 877,77p
326,058 347,816 346,379 355,279
977,946 969,802 964,440 983,161
273,620 321,D69 326,698 341,675
1,137,811 977,511 1,036,789 1,090,393
494,169 506,919 5D7,053 516,069
269,362 284,072 286,161 295,584
16,764,718 9,134,438 9,136,673 3.,325,966
1,569,033 171
6,680,697 6,972,841 7,080,809 7,208,943
10,598,178 10,998,094 11,327,488 11,993,969
237,667 287,733 292,967 305,431
6,832,146 7,460,739 7,736,845 8,132,178
716,199 677,746 655,829 670,889
45,767 45,796 45,813
297,893 305,635 306,029 314,486
1,030,189 850,007 850,7D9 873,459
501,258 507,934 513,775 534,425
276,233. 294,027 292,165 3D2,376
978,060 1,041,299 1,D53,39D 1,090,448
3,883,772
234,925 258,983 258,715 267,608
2,765,615 2,877,835 2,881,659 2,9D0,503
2,272,699 2,359,230 2,359,440 2,396,521
501,685 456,418 454,931 463,035
383,837 372,333 371,202 383,727
618,186 585,93.4 581,378 589,OD2
5,540,723 5,749,046 5,751,312 5,915,818
95,249 71,520 3,065 3,111
876,900 850,445 856,941 878,393
280,781 307,385 307,893 318,279
396,892 417,157 417,197 427,677
133,290 134,793 133,926 136,304
14,750 14,750
86,249 73,969 74,625 76,179
489,312 4$4,539 288,028 295,846
1 1 1
GRAND TOTAL 47,001.,550 72,013,795 50,755,824 61.,173.550 55,298,218
25
D. GENERAL FUND YEAR-END CASH BALANCE
The City of Iowa City's policy is that General Fund cash balances will not go below fifteen percent
(15%), with a ceiling of twenty-five percent (25%). During the FY2010 budget process, City Council
further revised the reserve policy for General Fund so that unreserved /unrestricted cash balance in
excess of twenty-five percent (25%) of expenditures be considered for tax relief.
In February, 2009, the Government Finance Officers Association (GFOA) released GASB Statement
No. 54, which redefines the terminology used for fund balance reporting. Following is a summary of
General Fund cash balance utilizing the new definitions.
General Fund
Assigned, Committed & Restricted Cash Balance
Unassigned:
Assigned:
(Available forcurrer>t end I or future operations)
Fire Dept. Donations
Honor Guard Donation
Pdice Department Donations
Cemetery Flags & Flagpoles Program
Housing Trust Acct Council
Committed:
(Available forcurrerrt end I or future operations)
Library Equipment Replacement Reserve
Park Land Acquisition Reserve
Library Computer Replacement Reserve
Park Land Development Reserve
Transit Reserve: Grant & Levy Restrictions
Fire Equipment Replacement Reserve
Transit State Capital
FY2010 FY2011 FY2012 FY2013 FY2014
Actual Amended Proposed Projected Projected
$ 16,327,260 $ 15,083,480 $ 13,555,255 $ 13,526,630 $ 13,219,929
3,841 - - - -
1,054 1,054 1,054 1,054 1,054
1,448 1,448 1,448 1,448 1,448
612 612 612 612 612
14, 455 14, 455 14, 455 14, 455 14, 455
$ 21,411 $ 17,570 $ 17,570 $ 17,570 $ 17,570
99,712 103,180 146,148 189,116 208,570
185, 733 185, 733 185, 733 185, 733 185, 733
106,599 94,033 110,422 126,765 169,733
23,437 23,437 23,437 23,437 23,437
2,455,596 2,455,596 2,584,572 3,020,693 3,693,874
420, 371 500, 371 580, 371 660, 371 740, 371
105, 990 105, 990 105, 990 105, 990 105, 990
$ 3,397,437 $ 3,468,339 $ 3,736,672 $ 4,312,104 $ 5,127,707
Restricted Cash Balance:
(Forfeitures, Dev.lConstr. Escrows) $ 8,724,175 $ 1,775,416 $ 1,775,416 $ 1,775,416 $ 1,775,416
General Fund Ending Cash Balance $ 28,470,284 $ 20,344,805 $ 19,084,913 $ 19,631,720 $ 20,140,622
General Fund Expenditures: $ 47,001,650 $ 72,013,795 $ 60,755,824 $ 61,173,650 $ 55,299,218
Unassigned Cash Balance 35% 21% 22% 22% 24%
as a % of Expenditures:
26
General Fund cash balance is relied upon to provide cash flow during the first quarter of the fiscal year
as the majority of property taxes are not received until October/November. The following chart
demonstrates how expenditures have exceeded receipts in the first three months over the past ten
years.
3 Months @
Se t. 30 Receipts Expenditures Shortfall
FY2011 $ 8,976,380 $ 13,778,695 $(4,802,315}
FY2010 $ 8,934,768 $ 13,186,81 D $(4,252,042}
FY2009 6,496,526 13,877,093 (7,380,567}
FY2008 7,041,379 12,484,773 (5,443,394}
FY2007 7,881,225 13,014,632 (5,133,407}
FY2006 6,315,525 12,105,987 (5,790,462}
FY2005 6,040,943 10,889,278 (4,848,334}
FY2004 4,595,488 11,049,590 (6,454,102}
FY2003 4,806,797 9,410,440 (4,603,643}
FY2002 4,387,107 8,818,510 (4,431,403}
III. SPECIAL REVENUE FUNDS
Special Revenue Funds include Employee Benefits, Community Development Block Grant (CDBG), the
HOME Program, Flood Recovery & Hazard Mitigation Grants, Road Use Tax, Johnson County Council
of Governments (JCCOG), and UniverCity.
A. Community Development Block Grant {CDBG) 8~ HOME Program -These funds account for
revenue from the U.S. Department of Housing and Urban Development and are restricted in use for
eligible projects as defined by federal regulations. Monies are utilized by both businesses and
individual homeowners for property rehabilitation and community development initiatives. In
FY2012, CDBG federal revenue is budgeted at $815,000 and the HOME program at $770,000.
B. Flood Recovery & Hazard Mitigation Grants - Grants totaling $26.5 million are budgeted for
hazard mitigation (including the home-buyout program) and business /residential assistance in
FY2011. This includes monies from FEMA, CDBG and the JUMPSTART Iowa Fund, with receipts
and expenditures anticipated to extend into FY2012.
C. Road Use Tax Fund -Road Use Tax Fund activities are financed through state-distributed Road
Use Tax and TIME-21 revenue, which is based on vehicle registration fees, motor vehicle fuel taxes,
rental vehicle excise taxes and a use tax on trailers. Funds are distributed back to cities based on a
per capita formula. Expenditures include operational costs in the Streets and Traffic Engineering
Divisions, funding to JCCOG Transportation Planning, and annual repair and maintenance projects
within the CIP program.
Municipalities were advised by both the IDOT and the Iowa League of Cities to budget Road Use
Tax receipts conservatively for FY2012, as projections from November, 2010, were "subject to
dramatic changes" as consumers respond to the change in economic conditions. Based on a
population of 62,380; revised revenue estimates for Iowa City are $5.86 million, $6.0 and $6.17
million in FY2012 - 2014.
D. Johnson County Council of Governments {JCCOG) - JCCOG is designated as the Metropolitan
Planning Organization (MPO) for the Iowa City Urbanized area. JCCOG coordinates planning
efforts for all of Johnson County. Member agencies include Coralville, Iowa City, Johnson County,
27
Lone Tree, North Liberty, Oxford, Shueyville, Solon, Swisher, Tiffin, University Heights and the
University of Iowa. While funding is received from all member agencies, JCCOG is organized
through a 28(E) agreement with the City of Iowa City. This provides for cost-sharing of clerical,
accounting, office space and vehicle pool expenditures.
A review of JCCOG's funding allocation is recommended at this time.
IV. TIF SPECIAL REVENUE FUNDS
Tax Increment Financing Districts have been established in various locations in Iowa City to encourage
economic development. TIF revenues are used to repay debt incurred for specific projects and to pay
property tax rebates on increased valuation per development-specific agreements within the districts.
As these agreements expire and/or their legal requirements are satisfied, tax revenue generated by the
incremental valuation (increase in property values for the district since it was established) are released
and future receipts are distributed to all taxing authorities. Iowa City's incremental TIF valuation for
FY2012 is $33 million.
V. DEBT SERVICE FUND
This fund accounts for annual principal and interest payments due on general obligation debt of the
City. Funding is provided by the debt service property tax levy, transfers from Water Operations, and
loan repayments.
FY2011 through 2014 G.O. bond issues are estimated to be $11.0 million, $9.1 million, $13.3 million
and $7.4 million, respectively. As stated in the City's Fiscal Policy, "Debt incurred as a general
obligation of the City of Iowa City shall not exceed statutory limits: presently 5% of the total assessed
value of property within the corporate limits as established by the City Assessor." The following
schedule and graph depict current and estimated future debt margins for the City as of December,
2010. Property valuations for FY2012 are estimates by the County Auditor's office, FY2013 and
FY2014 are estimated at two percent (2%) growth annually.
Fiscal
Year
Total (100%)
Property
Valuation Allowable
Debt Margin
(5% of Total
Property Val.)
Outstanding
Debt
at July 1 of
Allowable
Debt
Margin Outstanding
Debt as a
Percentage of
Total Valuations
FY02 2,692,448,464 134,622,423 61,565,000 46% 2.3%
FY03 2,909,644,383 145,482,219 85,260,000 59% 2.9%
FY04 2,962,505,107 148,125,255 79,100,000 53% 2.7%
FY05 3,195,170,779 159,758,539 85,085,000 53% 2.7%
FY06 3,214,973,037 160,748,652 85,290,000 53% 2.7%
FY07 3,732,590,506 186,629,525 85,840,000 46% 2.3%
FY08 3,931,783,525 196,589,176 87,090,000 44% 2.2%
FY09 4,280,833,857 214,041,693 84,995,000 40% 2.0%
FY10 4,315,084,693 215,754,235 75,050,000 35% 1.7%
FY11 4,370,663,185 218,533,159 83,595,000 38% 1.9%
*FY12 4,493,675,044 224,683,752 91,095,000 41% 2.0%
*FY13 4,583,548,545 229,177,427 87,855,000 38% 1.9%
*FY14 4,675,219,516 233,760,976 88,840,000 38% 1.9%
* Estimate
28
250
N
200
`_° 150
0
w
0
0 100
50
~~h C~do ~01 t~~`b ~~ ~^o t~^^ c~^ry c~~~~ c~~b
Fiscal Year (FY) Estimated
G.O. Debt Outstanding
- by Fiscal Year -
pAllowable Debt
Margin
^Outstanding Debt
at July 1
Iowa City's internal fiscal policy was revised in April, 201 D, upon recommendation of the Finance Director to
specify that the "debt service levy shall not exceed 30% of the city levy in any one fiscal year." The
following chart shows the debt service levy as a percentage of the city levy rate for FY2005 through 2014.
Fiscal years 2D13 and 2014 are based on estimated financing requirements for capital projects and are
subject to changes in other levy rates (based on operating costs) and future changes in property valuations.
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Debt Service Levy
As a Percentage of
Total Property Tax Levy
26.0%
24.6% 25.2%
°
24.3% 23.6% 25%
23%
22.4
°
(30%Recommended Maximum)
Note: Fiscal years 2007 and 2006 had one-time reductions in the debt levy °f
$636,200 and $934,947, which resulted in foregone debt levies °f $0.27 and
$0.365 respectively, funded fr°mthe General Fund.
ti~~~ ti~~~ ti~~~ ti~~~ ti~~~ ti~~o
Fiscal Year (FY)
* Estimated
29
CITY OF IOWA CITY, IOWA
ADDITIONAL POSITIONS
APPROVED FOR 20I2
salary /
Department Position FTE* wages Benefits Total
Sali~ i~~aute Recycle LASuL'FILL OPFF~A'1'OR 1.00 43, 01.2 22, 04 r3 6~~, OE~O
15ast~a..~e Recy~ le Cps [4.>^~. I - ,T~'SDF1L'L - L 9'OR 1.,00 36, 554 20, 990 57, 544
TOTAL EA7TERPRISE FiJNDS 2.00 79,566 43,038 122,604
2012 TOTAL - E?iTZ{313AL E'OSTTIO~+TB RECD ., ED 2.00 79, 566 43.038 122, 604
* FTE = Full Time Equivalent
CITY OF IOWA CITY, IOWA
Additional Positions Requested Fox 2012
NOT RECOMMENDED In 2012 Financial Plan
Salary /
Department Position FTE* wages Benefits Total
Purchasing PURCHASING CLERK .25 7,871 1,290 9,161
Mass Transit Oper PUBLIC INFO ASST - PKG & TRANS .50 20,944 10,932 31,876
Criminal Investig POLICE SERGEAN'T` 1.00 61,326 25,065 B6, 391
Patrol COMM SERV OFFICER - EVIDENCE 1.00 40,466 21,631 62,097
Patrol POLICE OFFICER 2.00 88,572 55,272 143,644
Fire Emergency Oper FIREFIGHTER 4.00 191,212 110,801 302,013
Park Maint Admin/Sup ASST SUPT - PARKS 1.00 52,328 23,588 75,916
Parks Oper & Maint M.w. T - PARKS 1.00 35,3B6 20,798 56,184
Parks Oper & Maint M.G,7. II - PARKS 1.00 37,822 21,197 59,019
Forestry Operations M. w. II - FORESTRY 1.00 37,822 21,7.97 59,07.9
Library Bldg Maint MwI -- LIBRARY .25 9,557 1,644 11,201
Senior Center Oper RECEPTIgNIST - SR CENTER .50 16,346 7.0,7.78 26,524
TOTAL GENERAL FUND 13.50 599,652 323,593 923,245
Parking Admin & Supp PUBLIC INFO ASST -- PKG/TRANSIT .50 27.,265 11,269 32,534
'Tower Place Garage O Nt. w, I - PARKING SYSTEMS 1.00 34,196 20,603 54,799
TOTAL EN7`E1ZP7t.TSE FUN.!)S i.50 55, 461 31, 872 87, 333
Traffic Eng Signs A3.w.II SIGNS 1.00 40,466 21,631 62,097
TOTAL OTHER FUNDS 1.00 40.465 21,631 62,097
201.2 TOTAL - a17OT RECO ED III 2012 16.00 695,579 377,095 1,072,675
* FTE ~ F`ull Time Equivalent
38
CITY OF IOWA CITY, IOWA
Additional Positions Requested For 2013
NOT RECOMMENDED In 2013 Financial Plan
Salary /
Department Position FTE* Wages Bene£it~ Total
Fire Emergency Oper FIREFIGHTER 4.06 186,008 127,045 315,053
TOTAL GENERAL FUND 4.00 188,408 127,045 315,053
2013 TOTAL - NOT 1tECOMb~NDED IN 2013 4.00 188,008 127,045 315,053
* FTE = Full Time Equivalent
CITY OF IOWA CITY, IOWA
Additional Positions Requested For 2014
NOT RECOMMENDED In 2014 Financial Plan
Salary /
Department Position FTE* Wages Benefits Total
Fire E~iergency Oper FIREFIGHTER 4.00 191,975 141,383 333,358
TOTAL GENERAL FUN17 4.00 191,975 141,383 333,358
2014 TOTAL - NOT ItECOD~NDED IN 2D14
* FTE = Full Tame Equivalent
4.DD 191,975 141,383 333,358
39
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