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Home My WebLink AboutFY2013 Budget Proposal.ppt-R FY 201 Budget Proposal January • January 71h: • January 91h: Operating Budget Review Public Works and CIP January 31St: Boards, Commissions and • a rc h 6th: • a rc h 6th: 01,07,2012 Special Events Public Hearing Formal Adoption Iowa City FY 2013 Budget Proposal 2 • Budget Overview and Highlights • General Government - Public Safety • Culture and Leisure • Community and Economic Development • Enterprise Funds • Q & A and General Council Discussion 01/07/2012 Iowa City FY 2013 Budget Proposal 3 • Transmittal Letter and Document Overview • Financial and Fiscal Policies • Summary Information • Fund Overview • General Fund • Special Revenue Funds • Grants and Dedicated Revenues (e.g. Road Use Tax) • Tax Increment Financing (TIF) • Debt Service Fund • Enterprise Funds (Business -Type) • Internal Service Funds • Capital Improvement Program (CIP) • Supplemental Information (including comparative analysis) 01/07/2012 Iowa City FY 2013 Budget Proposal 4 • Hold the line on expenses while maintaining or improving service levels o Eliminate redundancies and seek out efficiencies o Determine appropriate staffing levels • Reduce operational dependency on property taxes and begin analyzing the revenue model with an eye towards economic development • Build the fiscal integrity of each fund by ensuring that adequate reserve levels are achieved • Provide funding for infrastructure improvements, other capital improvements and economic development initiatives 01/07/2012 Iowa City FY 2013 Budget Proposal 5 • Reduction in overall property tax rate (- 3.19 %) 0 1% growth in property tax receipts due to increased valuations on residential properties o Commercial tax payers will see a decrease in overall tax burden • Shift of Transportation Services from the General Fund to an Enterprise Fund Continued reduction of workforce 0 10.87 FTEs eliminated in FY 2012 o 5.0 FTEs proposed to be eliminated in FY 2013 01/07/2012 Iowa City FY 2013 Budget Proposal I. • Rate increases proposed in several areas designed to reduce reliance on property taxes, address infrastructure needs and maintain healthy reserves o Transit • Housing Inspection • Storm Water o Parks and Recreation • Aggressive Capital Improvement Program (CIP) o Flood Recovery o Economic Development o Utility Services o Infrastructure • Flexibility to address Council Strategic Plan goals *Addition of operational performance measures and comparative analysis 01/07/2012 Iowa City FY 2013 Budget Proposal 7 Comparative Analysis Taxes and Utility Charges (FY 2012) Waterloo $18.53 1 Council Bluffs $17.85 2 Iowa City* $17.84 3 Sioux City $16.66 4 Des Moines $16.58 5 Davenport $15.53 6 Cedar Rapids $15.22 7 Coralville $13.53 8 North Liberty $11.03 9 Ames $10.85 10 Dubuque $10.45 11 * Projected Iowa City tax rate for FY 2013 is $17.27 01/07/2012 Iowa City FY 2013 Budget Proposal 9 North Liberty $32.77 $40.46 $9.35 $2.00 $84.58 1 Davenport $36.20 $33.08 $12.90 $1.85 $84.03 2 Iowa City* $27.34 $36.08 $15.50 $2.50 $81.42 3 (4) (2) (4) (5) Sioux City $27.49 $34.54 $13.90 $0.83 $76.76 4 Des Moines $18.03 $31.13 $13.00 $8.50 $70.66 5 Cedar Rapids $23.50 $19.92 $16.72 $4.56 $64.70 6 Coralville $17.80 $21.22 $19.00 $2.00 $60.02 7 Dubuque $18.49 $23.77 $10.72 $5.60 $58.58 8 Ames $24.52 $23.95 N/A $3.45 $51.92 9 Council Bluffs $17.20 $17.24 $16.00 $0.00 $50.44 10 * Projected FY 2013 Storm Water rate is $3.00 01/07/2012 Iowa City FY 2013 Budget Proposal 10 ML i 01/07/2012 Iowa City FY 2013 Budget Proposal Taxes Other City Taxes Licenses & Permits Use of Money & Prop Intergovernmental Charges for Services Misc. Debt Sales Sales of Assets Total Note: Excludes Transfers In FY2O12 FY2O13 Percent (Original Budget) (Proposed) Change $49,594,682 $50,078,215 1.0% $11,159,097 $11,583,940 3.8% $1,223,447 $1,440,389 17.7% $1,264,679 $1,535,880 21.4% $48,734,977 $38,627,081 -20.7% $40,683,916 $41,067,048 0.9% $5,207,600 $3,771,403 -27.6% $6,900,000 $11,000,000 59.4% $45,500 $944,650 1976.2% $164,813,898 $160,048,606 -2.9% 01/07/2012 Iowa City FY 2013 Budget Proposal 12 01/07/2012 Misc., 2% N Sales of Assets, 1% Charges for Services, 26% Taxes, 31% Intergovernmental, 24% rUse es & Permits, 1% .,JW# Money &Prop, 1% Iowa City FY 2013 Budget Proposal 13 Intergvrmmnt 5% Interest 0% Licenses & Permits 3% OtherTaH 19% 01/07/2012 Other Sources 1% Taxes Iowa City FY 2013 Budget Proposal MJA 4.60 4.10 3.60 N C 0 3.10 n 2.60 c 0 0 2.10 m R > 1.60 1.10 0.60 0.10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 —� 100% Assessed 2,906,767 3,139,440 3,241,786 3,750,697 3,891,207 4,215,257 4,320,469 4,380,100 4,436,680 4,530,840 Valuation Taxable 1,932,621 2,003,099 2,048,916 2,240,870 2,334,993 2,409,223 2,514,582 2,684,708 2,772,853 2,892,854 Valuation f% Taxable 66.49% 63.80% 63.20% 59.75% 60.01% 57.15% 58.20% 61.29% 62.50% 63.85% 01/07/2012 Iowa City FY 2013 Budget Proposal 15 Ag Land 0% Ind ctrini Railroads Utilities w/o Commercial 40% Ag Land Full Valuation 0% 01/07/2012 Iowa City FY 2013 Budget Proposal Industrial Railroads 3 %, F0 %i Utilities w/o Taxable Valuation Residential 57% $5,000,000,000 $4,500,000,000 $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $0 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 ■ 100° Assessed Valuation $2,852,2 $2,906,7 $3,139,4 $3,241,7 $3,750,6 $3,891,2 $4,215,2 $4,320,4 $4,380,1 $4,436,6 $4,530,8 ■ Percent change 8.2% 1.9% 8.0% 3.3% 15.70° 3.7�° 8.3�° 2.5�° 1.4% 1.3% 2.1% 01/07/2012 Iowa City FY 2013 Budget Proposal 17 $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $0 Taxable valuations Percent Change 01/07/2012 FY2009 $2,409,223,023 5.2% FY2010 $2,514,582,129 4.4% FY2011 $2,684,708,696 6.8% Iowa City FY 2013 Budget Proposal FY2012 $2,772,853,378 3.3% FY2013 $2,892,854,709 4.3% $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 FY2009 FY2010 FY2011 FY2012 FY2013 Total Tax Receipts $43,163,503 $45,388,973 $47,783,939 $49,589,989 $50,087,413 Percent Change 7.99% 5.16% 5.28% 3.78% 1.00% 01/07/2012 Iowa City FY 2013 Budget Proposal 19 $20.000 $18.000 $16.000 $14.000 $12.000 $10.000 $8.000 $6.000 $4.000 $2.000 Total City Tax Rate Percent Change FY2009 FY2010 FY2011 FY2012 FY2013 $17.717 $17.852 $17.756 $17.842 $17.272 2.43% 0.76% -0.54% 0.48% -3.19% 01/07/2012 Iowa City FY 2013 Budget Proposal 20 $10,000,000 II mm L81818i L810 I $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 01/07/2012 Iowa City FY 2013 Budget Proposal 21 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 FY 2012 FY 2013 • Hotel Motel Tax $724,000 $740,000 • Gas /Electric Excise Tax $448,000 $411,000 • Utility Franchise Tax $565,000 $578,000 01/07/2012 Iowa City FY 2013 Budget Proposal 22 01/07/2012 Iowa City FY 2013 Budget Proposal Public Safety Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government Debt Service Captial Projects Business Type Activities Total Note: Excludes Transfers Out $171,413,320 $ 169,655,080 -1.0% 01/07/2012 Iowa City FY 2013 Budget Proposal 24 FY2012 FY2013 Percent Change (Original Budget) (Proposed Budget) $ 21,154,608 $ 21,449,889 1.4% $ 13,958,388 $ 7,718,182 -44.7% $ - $ 290,707 $ 12,557,009 $ 12,685,436 1.0% $ 10,440,419 $ 6,938,005 -33.5% $ 8,383,917 $ 7,618,655 -9.1% $ 15,225,884 $ 20,226,796 32.8% $ 30,734,292 $ 25,723,659 -16.3% $ 58,958,803 $ 67,003,751 13.6% $171,413,320 $ 169,655,080 -1.0% 01/07/2012 Iowa City FY 2013 Budget Proposal 24 Public Safety 13% Public Works 5% Health & Social Services 1 0% Business Type Activities / Culture & Re 40% Ir' 7% nunity& Economic Development 4% General Government 4% Captial Projects 15% Note: Excludes Transfers Out Debt Service 12% 01/07/2012 Iowa City FY 2013 Budget Proposal 25 FY2012 FY2013 Percent (Amended) (Proposed) Change Personnel $34,244,787 $34,083,692 -0.5% Services $8,035,935 $7,823,727 -2.6% Supplies $1,613,624 $1,497,222 -7.2% Capital Outlay $1,526,996 $1,365,034 -10.6% Total Expenditures: $45,421,342 $44,769,675 -1.4% 01/07/2012 Iowa City FY 2013 Budget Proposal 26 Capital Outlay Sunnliec „�. 01/07/2012 Iowa City FY 2013 Budget Proposal 27 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Fy 2015 ■ Pension Contribution $1,918,024 $1,425,237 $1,347,496 $1,653,588 $2,273,077 $2,462,514 $3,012,021 $3,395,578 ■ Percent Change -1.80 - 25.70 -5.50 22.70 37.50 8.30 22.30 12.70 01/07/2012 Iowa City FY 2013 Budget Proposal INA 01/07/2012 Iowa City FY 2013 Budget Proposal • Reserves: o General Fund contingency at 3/4% of expenditures and transfers out o General Fund operating cash balance of 15 -25% o Other funds reserve funds vary on nature of business and bond covenants • Debt Financing: Debt Service levy not to exceed 30% of total property tax levy o Use of "pay -as- you -go" whenever feasible and practical 01/07/2012 Iowa City FY 2013 Budget Proposal 30 General $54,556,046 Water $8,360,557 Wastewater $13,110,517 Storm Water $951,914 Refuse $2,953,839 Landfill $6,816,906 Transit $6,482,902 Broadband $829,068 Airport $394,424 Parking $4,863,902 $54,448,251 $14,827,832 27% $9,368,041 $5,553,560 59% $11,329,423 $10,871,228 95% $731,702 $336,712 46% $3,017,382 $341,420 11% $5,315,207 $19,714,658 370% $6,033,630 $2,421,461 40% $783,976 $1,572,199 200% $393,375 $141,487 36% $4,351,520 $3,085,521 71% 01/07/2012 Iowa City FY 2013 Budget Proposal 31 v 0 E� 9 2 Source: Moody's (1012011) 1,200 1,000 800 V b 600 400 200 01/07/2012 Iowa Medians- Cities Aaa Aat Aa2 Aa3 Al A2 A3 Baal Baal Baa3 Ba7 Ratings National Medians- Cities Aaa A31 Aa2 A3J Al A2 A3 Baal Baal Baa3 Bal Ratings Iowa City FY 2013 Budget Proposal 32 20% 15% 10% 5% 0% Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baa2 Baa3 Bat Ba2 Ba3 B1 Source: Moody's (10/2009) - Includes ratings of approximately 3,300 cities 01/07/2012 Iowa City FY 2013 Budget Proposal 33 01/07/2012 Estimated Property Tax on $100,000 Residential Valuation (Iowa City Portion) Assessed Valuation $100,000 Taxable Valuation $48,530 City Levy $17.842 Property Taxes $866 Difference Iowa City FY 2013 Budget Proposal $100,000 $50,752 $17.272 $877 $11 34 Estimated Property Tax on $100,000 Commercial Valuation (Iowa City Portion) ,I& A& �& �& 01/07/2012 A, a, A, A, Assessed Valuation $100,000 $100,000 Taxable Valuation $100,000 $100,000 City Levy $17.842 $17.272 Property Taxes $1,784 $1,727 Difference $ (57) Iowa City FY 2013 Budget Proposal 35 Proposed Rate Increases: Transportation Services • $0.25 proposed fare increase (no increase past 15 years) • Achieve approximately 25% fare box contribution to overall costs o Housing& Inspection Services • 5% proposed increase for rental inspections • $28 proposed fee for electronic plat submission o Storm Water: • $0.50 proposed monthly increase • Part of three -year schedule adopted for FY2012 for capital improvement projects o Recreation Programs • Various adjustments in several programs and activities • Goal is for fees to contribute 50% of departmental funding 01/07/2012 Iowa City FY 2013 Budget Proposal 36 • Reasons for Fee Increases Maintaining a relationship between fees and program costs to avoid over - reliance on property taxes Anticipated infrastructure improvements o Strong fund balances intended to maintain AAA bond rating and provide flexibility in emergencies or for unforeseen opportunities • Annual Review of Fees /User Charges o Reviewing fee structures annually allows for more gradual increases; avoids sudden, drastic hikes o Fees can adjust in response to changing costs Improves compliance with City revenue policies for self- supporting funds and programs 01/07/2012 Iowa City FY 2013 Budget Proposal 37 $2,000.00 $1,800.00 $1,600.00 $1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $200.00 A ■ Property Taxes $781 $814 $833 $866 $877 ■Stormwater $24.00 $24.00 $24.00 $30.00 $36.00 • Refuse $174.00 $174.00 $186.00 $186.00 $186.00 • Sewer - 800 cubic feet $432.96 $432.96 $432.96 $432.96 $432.96 • Water— 800 cubic feet $328.08 $328.08 $328.08 $328.08 $328.08 Based on residential customer with $100,000 taxable property valuation. Total estimated financial impact is $1,892 or $17 more in FY 2013 compared to FY 2012 01/07/2012 Iowa City FY 2013 Budget Proposal M. • Flattening of property tax receipts (lower overall tax rate) due to increased organizational efficiencies and strategic rate increases (real savings for commercial properties) • No service level reductions or elimination of public services • Building fiscal integrity to ensure maintenance of AAA bond rating • Continued emphasis on flood recovery, infrastructure maintenance and economic development initiatives 01/07/2012 Iowa City FY 2013 Budget Proposal 39 • External Pressures o National Economy Reduction in Federal Programs State of Iowa • Commercial Property Tax Relief • Impact of `Krupp' Cooperative Ruling • Rapidly escalating public safety pension contributions 01/07/2012 Iowa City FY 2013 Budget Proposal 40 Council Strategic Plan o Economic and Community Development • Towncrest • Moss Green • Industrial Park • Sycamore Mall • Northgate • Heinz Road • Benton / Mormon Trek • Rochester/ Scott o Development of the Downtown and Near Downtown Areas • Collaboration with SSMID • Riverfront Crossings plan implementation o Neighborhood Stabilization • UniverCity partnership and housing rehabilitation program • Infrastructure improvements • Collaboration with ICCSD 01/07/2012 Iowa City FY 2013 Budget Proposal 41 Council Strategic Plan (continued) A Strong and Sustainable Financial Foundation • Review of reserve, contingency, purchasing and other financial policies • Improved budget document and process • Enhanced performance measures • Additional comparative metrics • Introduction of trend analysis • Maintenance of AAA bond rating o Coordinated Communication and Customer Service Orientation 01/07/2012 • Review of transactional processes • Internal communication channels Iowa City FY 2013 Budget Proposal 42 • Continued effort to reduce dependence on property taxes while maintaining acceptable service levels (organizational efficiency) • Annual analysis of utility rates, fees and charges for services • Achieve economically competitive revenue model that maintains fiscal integrity and provides greater stability through diversification 01,07,2012 Iowa City FY 2013 Budget Proposal 43 01/07/2012 Iowa City FY 2013 Budget Proposal