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Home My WebLink AboutFY2012 BUDGET.pptFY2012 BUDGET JANUARY 13, 2011 FY2012 BUDGET • Review of items from Budget Work Session on January 5t" -What does the Airport Fund owe on previously built hangars? -Should the G I S system purchase be in FY2012 versus FY2013? -How does the proposed 25% increase in Storm water revenue rates impact commercial accounts? FY2012 BUDGET • Review of items from Budget Work Session on January 5t" continued... -How will the Animal Shelter be financed? -Are there other options to reduce the property tax levies? -What does the Airport Fund owe on previously built hangars? L~-~,11 La~lti C4N1fu1EfaT PRIFaCIP~kL Fkl~TE START Filti;~I Payrrti~lrt Prlncllk9~l ±~rrt~#;iltirlilti~J A~ ~f' 6;'3{M~'^I1 111 Ik41 #' UI H;~Iti~;ir a3~~6-~~611~U~ 4.0096 6302010 2030 ~~ 9,310.67 (Loan restructured in Jan 2003 to be based on hanger income received, interest rate reduced to 496, length of loan v,rill I: SE T-Haltic~~r ~.373`i0 depend an hanger income) 372,076.47 4.0096 6~30l1997 2032 282,434.70 (Caen restructured in Jan 2003 to be based on hanger income received, interest rate reduced to 496, length of loan vwill depend on hanger income) F: a~orl~. Hangar II~F~~~ DMI12J10l02 723,439.83 4.0096 7!111999 2034 636,216.99 (Caen restructured in Jan 2003 t0 be based 4n hanger income received, interest rate reduced to 496, length of loan vwill depend on hanger income) DM112110102 F~epaymt sched is gradual until FB4 K: S'~f T H;~n~~;~r Hltl~a II~73~~ contract e~cpires, per ~4. 311 ,618.62 4.0096 711 X2002 2036 262,623.99 To#;~I Airl~~r# 1,~~GO,~~~.~a Landfill loans to Operating Funds Hrl~~~l,~;~l Fi~~;~rl ~tr~~.#;~~~{li~~ L~;~~ti Fk.~.TE H;~r~n~~~~# ~. ~f ~: ~~ ;~ _.+ i:a~~~~r;il Ft~~~~l: r_ ~#r_ E~titr~l~l~~ ~ _~~ ~~-1 ~ ~-1 ,~-1 -1 _~~ ;~~~~1 L;rl~ ~ F~~~r°' .~r~;~ ~Ir~~- #~ LF ~ _~~ ~~-1 ~ -1 ~~ ,~~~ _~~ Firms #;~#i~~~ D~r~ti~:7~~~~~ti#rt~~#i ~.~~ 2~2~ ~~~,~~~.~~ Firms #;-r#i~~~ ~ - ~.~~*ir~~;-rt~~1~ ~ _~~ ~~~'I `I ,~~~ ,~~~ _~~ .~' Ir1~#r#' 1: E T-H~r~~~~r a~~~1~ ~.~~ ~~~~ ~~~,~~~.~~ 1~: ~~~~ T H;r~ti~~trr HI{1~ a~~~~~ ~ _~~ ~~~~ ~~~ ,~~~ _~~ P;~rl~ i~~~~ ~t~#Itii~l~ PFD ~J F;~~ili#~ T~#;~rl .~11 1~~#~r~~;~l L~;~r~~ Should the Geographic Information System project purchase be in FY2012 versus FY2013? Recommendation by staff is to leave project costs in FY2013 and note that operating costs estimated at $80,000. ~~.a,~ ^ ByLayer ocr oa "~' ~: .~ ~ ~~` W _h-. r p .~ ~[~ r How does the proposed 25% increase in Storm water revenue rates impact commercial accounts? Non-Residential: Increase of 50 cents in the base rate and 25 cents per Equivalent Residential Unit (ERU) per month. An ERU equals 3,129 square feet of impervious area. • Average Commercial (35,764 SF) o Past and current - $10.57/month o FY2012 - $13.93/month o FY2013 - $17.29/month o FY2014 - $20.64/month o FY2015 - $24.00/month • Average Industrial (639,121 SF) o Past and current - $155.19/month o FY2012 - $206.76/month o FY2013 - $258.32/month o FY2014 - $309.89/month o FY2015 - $361.45/month How does the proposed 25% increase in Storm water revenue rates impact commercial accounts? Continued... The following are some examples of current stormwater utility rates in other Iowa communities comparable in size or location. • Ames o Flat fee for all properties - $3.00/month ^ Council has recently approved a change to an ERU-based rate structure plus a 15% rate increase. • Ankeny o Single family property - $4.00/ERU per month o Multi-family property - $4.00/ERU per month o Non-residential - $3.00/ERU per month • Coralville o Single family property - $2.00/month o Multi-family property - $2.00/month per unit o Non-residential - $2.00 + $0.75/ERU per month • Dubuque o Single family property - $5.25/month o Multi-family property - $2.20/month per unit o Non-residential - $5.25/ERU per month • Marion o Single family property - $3.50/month ^ Proposed change - $4.50/month o Non-residential - $3.50/month ^ Proposed change - $1.00 + $3.00/ERU per month How will the Animal Shelter be financed? Propose that the general funding be `last dollar in'. from FY2011 to FY2012. obligation bond Move financing Spend FEMA, insurance reimbursements, and donations 4r_ a 'a~~s~, < a s funding first. Major Causes of Tax Rate Increase FY2012 • FY2012 first full year of salaries and benefits for Public Safety expanded service levels • 25% increased in pension benefits for Public Safety personnel • Debt levy increases for expanded Capital Improvements Program PAST AND FUTURE TRENDS THAT IMPACT PROPERTY TAXES • Public Safety pension increases projected FY Year FY2011 FY2012 FY2013 Employer contribution 19.90°Jo X4,76°l0 ~ Percent Increase X4.4°fa 29.31 184°b FY2014 37.33°M 27 4% PAST AND FUTURE TRENDS THAT IMPACT PROPERTY TAXES continued... * Property valuations -minimal to no growth ~lu~ti~n on Janu~r~ ~ _ ~~7 ~~~~ ~~ ~~ ~ ~ ~~ Fis~~l l~~~r F~~ F1~1~ F~~~~~ Fl~~~ F1~~~ ~ ~~r ~r7t of rave ~ ~~ ~~.~~~~~ ~.~~~~~ '~.~I~''~¢ 1.~~~~~ ¢~~ ~~tii~~{~~~ The data below is from the Iowa City Area Association of Realtors ~~Id M~rk~k aar~ - ~~~ ~~~~ ## Li~king~ +~~lum~ ~#+~~ Prise Mid ~ri~~ A+~~ ~QM F~#MIL'~~A~RE~~E I~~~ ~ik~ R~~id~nki~l ~~I~~ a~n - ~~~ ~~ 1 ~ I~~~ ~ik~ # Li~kin~~ +~~IUm~ ~+~~ Pri~~ h~~~ ~ri~~ ~+~~ ~~M ~~~ ~1~~a~~~a~~~ $1~~a~~~ ~1~~a~~~ ~~ PAST AND FUTURE TRENDS THAT IMPACT PROPERTY TAXES continued... • Interest Income revenue drop and forecast is flat FV~ AcWal $ 1,664,663 FV09 Actual f 151,219 f ~55°b FV10 FY11 FY12 fY13 Actual Estimate Pmposetl Pmposetl 451,239 f 81,500 f 81,500 f 81,500 39°k ~81°b i fY14 Pmposetl S 81,500 PAST AND FUTURE TRENDS THAT IMPACT PROPERTY TAXES continued... • Health Insurance costs expected to rise - "Ballooning and seemingly uncontrollable health expenditures. In 1978 health outlays were just 12 % of state and local expenses. Today they are 20% and rising."* *from Neal Pierce of Governing Magazine PAST AND FUTURE TRENDS THAT IMPACT PROPERTY TAXES continued... Dear Client: Washington, Jan. 7, 2011 Many local governments face a painful 2011, even as the national economic picture gets brighter. Tens of thousands of jobs will be eliminated, services trimmed and local procurements scaled back. Less generous pensions and health benefits for new public workers. That means tougher recruiting of top prospects even after the fiscal situation improves. And more defaults, though not for big cities. Uncle Sam won't let that happen...the blow to the economy would be too great. n general, however.. . The Washington money pipeline is drying up. For local governments, that'll make 2011 even worse than the recession years, when federal aid flowed freely. *Kiplinger Letter Are there other options to reduce the property tax levies? Reduction of One police officer One firefighter Agenda software Travel Deer Control Transit benefits transfer Sustainable 1% cuts Tota I $72,000 $75,500 $27,500 $77,000 $45,000 $300,000 50 000 $647,500 Proposed reductions impact on property tax levies • Operating levies would be reduce by 23.4 cents ($647,500 divided by 27,700 equals 23.4 cents) • Debt levy could be reduced by 6.6 cents by moving Animal Shelter ($700k) and First Avenue Overpass ($800k) to FY12 ~,~ , s ,n. ~ ~1 ~ ,~~~ ,~~~ ~ . ~~~ ~ ~1 ~ ,~~~ , ~1 ~~ ~ . ~~~ Questions ?