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Home My WebLink AboutBudget Proposal71-6 -/- • January 71h: • January 9th: • January 31St: • March 6th: • March 61h: 01;0];2012 Operating Budget Review Public Works and CIP Boards, Commissions and Special Events Public Hearing Formal Adoption Iowa Cut, F 2013 Budget Proposal 2 �9 1 • Budget Overview and Highlights • General Government • Public Safety • Culture and Leisure • Community and Economic Development • Enterprise Funds • Q & A and General Council Discussion 01.'0. 2012 Iowa City F 2013 Budget Proposal Budget I' 1 Overview • 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 o Enterprise Funds (Business-Type) o Internal Service Funds o Capital Improvement Program (CIP) • Supplemental Information (including comparative analysis) 01/07/2012 Iowa City F 2013 Budget Proposal 4 1/10/2012 2 • Hold the line on expenses while maintaining or improving service levels Eliminate redundancies and seek out efficiencies 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 fundingfor infrastructure improvements, other capital improvements and economic development initiatives 01/07/2012 Iowa City FY 2013 Budget Proposal Budget • Reduction in overall property tax rate (- 3.19 %) c 1% growth in property tax receipts due to increased valuations on residential properties 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 * 10.87 FfEs eliminated in FY 2012 0 5.0 FfEs proposed to be eliminated in FY 2013 01/07/2012 Iowa City FY 2013 Budget Proposal 1/10/2012 3 Budget • Rate increases proposed in several areas designed to reduce reliance on property taxes, address infrastructure needs and maintain healthy reserves Transit o Housing Inspection Storm Water Parks and Recreation • Aggressive Capital Improvement Program (CIP) Flood Recovery 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 Jowa City FY 2013 Budget Proposal Y Iowa City FY 2013 Budget Proposal North Liberty $32.77 $40.46 $9.35 $2.00 $84.58 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 $24.52 $23.95 N/A $3.45 Iowa City FY 2013 Budget Proposal 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 a 1/10/2012 5 All Funds Revenue Compahson FY2012 FY2013 Percent (Original Budget) (Proposed) Change Taxes $49,594,682 $50,078,215 1.0 °% Other City Taxes $11,159,097 $11,583,940 3.8% Licenses & Permits $1,223,447 $1,440,389 17.7% Use of Money & Prop $1,264,679 $1,535,880 21.4% Intergovernmental $48,734,977 $38,627,081 -20.7% Charges for Services $40,683,916 $41,067,048 0.9% Misc. $5,207,600 $3,771,403 -27.6% Debt Sales $6,900,000 $11,000,000 59.4% Sales of Assets $45,500 $944,650 1976.2 °% Total $164,813,898 $160,048,606 -2.9% Note: Excludes Trans hers In 01 0, 2012 love City F 2013 Buaget Proposal 12 1/10/2012 E All Funds Revenues S�Iw PIMxb.1% MIn..1% .Po& mPmP % 1% ,-: rn l 01,'07/2012 Iowa City FY 2013 Budget Proposal General ' Revenues ou« seurcn t% Im.ryrmmnr Im.r.n o% u�.na.a P.rma. 3% 01/09/2012 Iowa City FY 2013 Buegat Pro,," 9 Taxable Full vs. 11 by I meuamal aouroeas ublliieew /o maWnlal Belawea u'lue -w/o 2% 0% Ga4EleNk 3% 0% Gn/Elx[rlc M 0% Ag one In Pg Lantl Full Valuation Taxable Valuation 0.1/0]/2012 Ipwa City F 2013 Budget Pmpofial Full Taxable vs. t t 4.60 4.10 xow x xaofi zoos 11 : :om z z6w zws z zmo zon 3otz z zou IN 3.10 2.eo — zta i 60 1.10 060 o+o -,0 008 ....... V ml.n T ble V Ilon 1,932,621 2,003 ON 2 Me 2,409,223 ]s9]5L 3,514,563 3,684,]w 3]]369 3,09x.fis1 rtYT abk 6649% 6360% 63 30% 1]80014, 5]15% 56.30% 61.29% 63.50% 6].95•/. 01/07/2012 Iowa CRY F 2013 Budget Proposed 9 Taxable Full vs. 11 by I meuamal aouroeas ublliieew /o maWnlal Belawea u'lue -w/o 2% 0% Ga4EleNk 3% 0% Gn/Elx[rlc M 0% Ag one In Pg Lantl Full Valuation Taxable Valuation 0.1/0]/2012 Ipwa City F 2013 Budget Pmpofial xow x xaofi zoos 11 : :om z z6w zws z zmo zon 3otz z zou Taxable Full vs. 11 by I meuamal aouroeas ublliieew /o maWnlal Belawea u'lue -w/o 2% 0% Ga4EleNk 3% 0% Gn/Elx[rlc M 0% Ag one In Pg Lantl Full Valuation Taxable Valuation 0.1/0]/2012 Ipwa City F 2013 Budget Pmpofial 1/10/2012 100% Property Valuations 56000,000,000 - - 56,800,000.000 H,000,000.000 _. f3.8W.000.00p - S3.CQ].000.000 - s2.tap,aao,000 _. fz.opp.aao,odo - sa.600.aad.aod - sa.000.aao.aop stpp.opp,aao - FY3003 FY1W1 FP1006 %2006 MM7 fl20C5 M005 1y 010 I M011 M1012 fl n 01/07/2012 Iowa City FY M13 Budget Proposal 17 spo% Taxable 1 I' Valuations 33.aad.aaa,aop w4w4M 5].563.2 5].088.] 53,1,4 SA341.) 53.]80.8 Si.BBV.t 54.215.2 fC.3AR M.SSO.v N.438.8 54.63J.8 Nlwtlon 52,000.000.000 $1.500.000,000 tjj S1.OJO.OW.OW •Ppnm M4n(e 8.2% 19% 60% 3.3% 16.]% 9.]% 83% 26% 14% 1.3% 3.1% Taxable 1 I' Valuations 33.aad.aaa,aop 53.000.000.000 $2,500.000.000 52,000.000.000 $1.500.000,000 tjj S1.OJO.OW.OW lSdd,odp.opp e12)ae.5B8 S2n2863.5)5 52.852.864.]05 Parwn[OMnp 52% 66% BB% 33% 43% 01/07/2012 Iowa City R 2013 Budget PmpuSal 1g Property 1 Receipts $80000.000--- - - - -.. $18000 $50 000'" 140000'000 $30000,000 t! $10000 fl--�13 $20000 ,000 $10000000 $0 Ff100B FM010 fM011 $2000 6MOOB iobl Ten Pacupb 00.193.603 546,989919 SaTT93B3B M &598.988 360.091.613 $11.111 PmmR CM,W i99% 6.19% 639% 37B% 1.00% 01/07/2012 Iowa City H 2013 Budget Proposal 111 a91x O.M% Property I. Rate 1 S2o000 $18000 $18000 $14,000 312000 t! $10000 $9000 $6000 14 000 — $2000 6MOOB Ff1am 6M011 iM01] FY 3013 TW Ic[TU R$b $11.111 11].953 511.]68 31].842 $17272 Mun n® 34316 019% 111 a91x O.M% 5.19'16 01/07/2012 Iowa City H 2013 Budget Proposal 1/10 /2012 10 Other l Revenue Sources $10,000,000 - $9,000,000 -- - - $8,000,000 - - $7,000,000 -- $6,000,000 - $5,000,000 $4,000,000 - $3,000,000 - $2,000,000 $1,000,000 Local Option Sales Tax ■ FY 2012 (Original $7,800,000 Budget) ■ FY 2012 (Amended $8,600,000 Budget) • FY 2013 $8,600,000 • FY 2014 $2,000,000 01/07/2012 Iowa City FY 2013 Budget Pmposal $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 FY 2012 FY 2013 FE otel Motel Tax $724,000 $740,00( • Gas /Electric Excise T ax _ $448,000 $411,00( ■ Utility Franchise Tax $565,000 $578,00( 01/07/2012 Iowa City F 2013 Budget Pmposai 22 1/10/2012 11 Public Safety Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government Debt Service Captial Projects Business Type Activities Total Note: Emludes Transfers Out 01/07/2012 FY2012 FY2013 (Original Budget) (Proposed Budget) $ 21,154,608 $ 21,449,889 $ 13,958,388 $ 7,718,182 $ - $ 290.707 $ 12,557,009 $ 12,685,436 $ 10,440,419 $ 6,938,005 $ 8,383,917 $ 7,618,655 $ 15,225,884 $ 20,226,796 $ 30,734,292 $ 25,723,659 $ 58,958,803 $ 67,003,751 $171,413,320 $ 169,655,080 Iowa City P9 2013 Budget ProOOSal Percent Change 1.4% -44.7% 1.0% -33.5% -9.1% 32.8% -16.3% 13.6% -1.0% 24 1/10/2012 12 All Funds Expenditure by Classification 0 voeu�worx. s% 211has .W Se —. 0% Oommunily6E omio O Iopmenr ass Gnsnlw 'nment 4% Nee. Excludes Transfers Out 01/07 /2012 lave City FY 2013 Budge[ Proposal 25 General Expenditures 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 $44,769,675 148, 01,N 2012 Iowa City FY 2013 Budget Proposal 26 1/10/2012 13 General 1 Expenditures Supplies CePlt3 OUney 3% i 0 01/07/2012 lows City FY 2013 Budget Proposal F—Public Safety Pension I I 1 :0.000.000 - f3.500.000 13.000.000 sz655.ao5 s2,000,aoo #.6a6,ao5 sv.o55.aao — sSfq,OW PY 2008 Py2000 1 "2010 11 %201v FY 2012 %]013 %2014 F MuB •pe,WOn (bnbl5utlan 11818020 !1026.23) 31.34).088 1186368e !2313.0)) !2,08;514 !3,012.021 !33865)8 •Peroertt Cllen® -13% -26 )% 65% 23.1% 316% 8.3% 223% 12.7% 01/07/2012 IOWA City PY 2013 Budget Proposal 28 1/10/2012 14 El • Reserves: • General Fund contingency at 3 /a% of expenditures and transfers out • General Fund operating cash balance of 15 -25% • Other funds reserve funds vary on nature of business and bond covenants • Debt Financing: o Debt service levy not to exceed 30% of total property tax levy Use of "pay -as- you -go" whenever feasible and practical 01/07 /2011 Iowa City FY 2013 Budget Proposal 30 1/10/2012 15 I � General $54,556,046 $54,448,251 $14,827,832 27% Water $8,360,557 $9,368,041 $5,553,560 59% Wastewater $13,110,517 $11,329,423 $10,871,228 95% Storm Water $951,914 $731,702 $336,712 46% Refuse $2,953,839 $3,017,382 $341,420 11% Landfill $6,816,906 $5,315,207 $19,714,658 370% Transit $6,482,902 $6,033,630 $2,421,461 40% Broadband $829,068 $783,976 $1,572,199 200% Airport $394,424 $393,375 $141,487 36% Parking $4,863,902 $4,351,520 $3,085,521 71% Iowa City FN 2013 Budget Proposal Iowam ians Cols 4 a A.. A.1 Aa2 A ma l Aa N.11nJ. source: Mootlys(1012011) uaennnl wm,m..rer. 1 v.: rmo a • a+ wig ...,..,,w. ara. OV0712012 Iowa City F 2013 Budget Proposal 1/10/2012 16 ' ' I ' 1 "' 1 o "' Rating CFY2012 20% — Madan - ----- - - - - -- Assessed Valuation $100,000 15% Taxable Valuation $48,530 $50,752 City Levy $17.842 10% - - -- $877 Difference 5% - Aae Aal Ali Aa3 Al A2 A3 Beat Baal Baa3 Bet Bet 8a3 B1 Source: Moody. (10/2009) - Includes ratings otapproUmatery3.300 ce/es 01/07/2012 Iowa C1ty FY 2013 Budget Proposal - ' ' I ' 1 "' 1 Estimated Property Tax on $100,000 Residential Val dab on (Iowa City Portion) CFY2012 CCF 2 013 $866 822 Assessed Valuation $100,000 $100,000 Taxable Valuation $48,530 $50,752 City Levy $17.842 $17.272 Property Taxes $866 $877 Difference $11 OV07/2012 lma City FV 2013 Budget Proposal 1/10/2012 17 Prop' Propedy Tax Impact Estimated Property Tax on $100,000 Commercial Valuation (Iowa City Portion) FY2012 FY2013 $1,784 $1,727 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) 01/07/2012 iawa City FV 2013 &ldget Proposal 35 Budget Analysis Proposed Rate Increases: o Transportation Services • $0.25 proposed fare increase (no increase past 15 years) • Achieve approximately 25% fare box contribution to overall costs 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 Recreation Programs • Various adjustments in several programs and activities • Goal is for fees to contribute 50% of departmental funding 01/07 /2012 laxa City H 2013 Budget Proposal 36 1/10/2012 18 • Reasons for Fee Increases o Maintaining a relationship between fees and program costs to avoid over - reliance on property taxes o 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 • Reviewing fee structures annually allows for more gradual increases; avoids sudden, drastic hikes • 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 Financial I to Average I • lea.ao f1aa.00 G suzna fasz.ae s+a2 es sesx.ea tes2Po 2000aa fs2eoe ssm.oe ssseoe ssaa oa fsseoe fLBOO W 3180000 fLb000 51200.00 51000.00 seooao seoo oo seoo oo s2ao oo > FY200a mto10 I moll fy2012 FC1013 .P,.PFrorus s7ss ss1+ sass seas $en .smmr..ur sza.m fsaao uam fw.00 sx.m . F.YM1.e $174 OD :178.00 #ea.00 $ Based on residential customer with $100,000 taxable property valuation. Total estimated financlal Impact Is $1,892 or $17 more In FY 2013 compared to FY 2012 01/07/2012 Iowa City FY 2013 Budget Proposal 38 1/10/2012 19 lea.ao f1aa.00 .smw- eaoamrn suzna fasz.ae s+a2 es sesx.ea tes2Po .wmr- eooaumoyest fs2eoe ssm.oe ssseoe ssaa oa fsseoe 1/10/2012 19 • 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 lows Cdy FY 2013 Budget Proposal 39 Looking Ahead • External Pressures 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 1/10/2012 20 Looking ' 't) Council Strategic Plan Economic and Community Development • Towncrest • Moss Green • Industrial Park • Sycamore Mall • Northgate • Heinz Road • Benton / Mormon Trek • Rochester/ Scott -: Development of the Downtown and Near Downtown Areas Collaboration with SSMID • Riverfront Crossings plan implementation Neighborhood Stabilization • UniverCity partnership and housing rehabilitation program • Infrastructure improvements • Collaboration with ICCSD 01/07/2012 Iowa City 2013 Budget Proposal 41 LookiRg Ahead 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 • Coordinated Communication and Customer Service Orientation • Review of transactional processes • Internal communication channels 01/07/2012 Iowa City F 2013 Budget Proposal 42 1/10/2012 21 1/10/2012 NOW • 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 2013 Budget Proposal