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HomeMy WebLinkAboutBudget Presentation.ppt-R FY 20 Budget Proposal January • January 4t": Operating Budget Review January 6t": Capital Improvement Plan March 4t": Public Hearing March 4t": Formal Adoption 01/04/2013 Iowa City FY 2015 Budget Proposal 2 • Budget Overview and Highlights • General Government • Public Safety Culture and Leisure Community and Economic Development Enterprise Funds Public Works Budget Q & A and General Council Discussion 01/04/2013 Iowa City FY 2015 Budget Proposal 3 • Transmittal Letter and Document Overview • Financial and Fiscal Policies • Preparation of the Financial Plan (Process) • Emergency Fund created; 3rd projection year replaced by re- estimated current year • Summary Information • Fund Overview o General Fund o Special Revenue Funds • Grants and Dedicated Revenues (e.g. Road Use Tax) • Tax Increment Financing (TIF) o Debt Service Fund • Enterprise Funds (Business -Type) • Internal Service Funds o Capital Improvement Program (CIP) • Supplemental Information (Including Comparative Analysis) 01/04/2013 Iowa City FY 2015 Budget Proposal 4 • Fire Department budget reflects the Administrative Secretary position eliminated in FY 2015 Elimination will be done through attrition in FY 14 FY 15 budget now reflects a net reduction of 7.5 employees from FY 14 01/04/2013 Iowa City FY 2015 Budget Proposal 5 • Prepare for property tax shortfall resulting from the 2013 legislative changes while maintaining service levels • Maintain the City's Moody's Aaa bond rating • Maintain a competitive tax and fee environment for economic development purposes • Continue to follow industry best financial management practices and receive the GFOA Distinguished Budget Award and the Certification of Achievement for Excellence in Financial Reporting • Utilize Strategic Plan priorities to guide financial decisions 01/04/2013 Iowa City FY 2015 Budget Proposal 6 • Preparation for impact of property tax reform o Creation of an Emergency Fund to provide additional stability, protect against a sudden loss of revenue or increase in unfunded mandates, and make the community more resilient through disaster relief and mitigation funding Measured reduction in operational costs with minimal service level impacts Continued reduction in the overall property tax rate 0 3.1% growth in taxable valuation primarily due to increased rollback o Tax rate reduced by 6.4% since FY12 ($17.842 to $16.705) - FY 15 rate will be the lowest Iowa City rate since FY 2002 o Tax rate is still considerably higher than many peer and adjacent cities 01/04/2013 Iowa City FY 2015 Budget Proposal 7 • Strong reserve levels and contingency spending planning • Select rate increases proposed to reduce reliance on property taxes, address infrastructure needs and maintain healthy reserves Parks and Recreation (misc. program and facility rental increases) o Refuse ($.40 increase on monthly waste removal charge) o Water (5% increase in FY 15 and FY 16) • Aggressive Capital Improvement Program (CIP) o Flood mitigation o Critical infrastructure Resources made available for Strategic Plan priorities 01/04/2013 Iowa City FY 2015 Budget Proposal 8 Comparative Analysis Taxes and Utility Charges (FY 2014) E4�.) 9 C53 E FY 2014 Tax Rate Council Bluffs $17.75 1 Waterloo $17.49 2 Des Moines $16.92 3 Iowa City* $16.81 4 Davenport $16.78 5 Sioux City $16.25 6 Cedar Rapids $15.22 7 Coralville $13.53 8 West Des Moines $12.05 9 North Liberty $11.03 10 Dubuque $11.02 11 Ames $10.86 12 *Projected Iowa City taxrate forFY2015 is $16.71. Iowa City was ranked third among thisgroup in FY2013 01/04/2013 Iowa City FY 2015 Budget Proposal 10 North Liberty $37.66 $43.77 $9.35 $2.00 $92.78 1 Davenport $34.94 $36.16 $13.90 $2.35 $87.35 2 Iowa City* $28.71(7) $36.08 (3) $15.50 (4) $3.50(5) $83.79 3 West Des Moines $30.30 $34.80 $11.25 $4.25 $80.60 4 Sioux City $29.32 $34.54 $14.90 $0.83 $79.59 5 Des Moines $23.15 $33.50 $13.00 $9.74 $79.39 6 Dubuque $22.99 $31.91 $12.74 $5.60 $73.24 7 Cedar Rapids $26.95 $21.49 $18.51 $4.78 $71.72 8 Council Bluffs $32.56 $17.21 $16.00 $0.00 $65.77 9 Ames $31.26 $28.72 $0.00 $3.45 $63.43 10 Coralville $17.80 $22.62 $19.00 $2.00 $61.42 11 Waterloo $16.06 $24.38 $15.50 $2.75 $58.69 12 * Projected FY 2015 Water rate is $30.14 and Refuse rate is $15.90 01/04/2013 Iowa City FY 2015 Budget Proposal 11 North Liberty 0% Davenport 0% West Des Moines 0% Ames 0% Coralville 1% Iowa City 1% Sioux City 2% Cedar Rapids 2% Council Bluffs 2% Waterloo 2% Dubuque 3% Des Moines 5% 01/04/2013 Iowa City FY 2015 Budget Proposal 12 Waterloo 1% 1 -Apr 31- Dec -2015 9.94M 100% Street Repair 50% Property Tax Relief, 20% City Dubuque 1% Apr -88 8.31M Facilities Maintenance, 30% Special Assessment Relief Iowa City* Jul -09 30- Jun -2013 9.08M 100% Flood Related 90% Flood Recovery, 10% property tax Cedar Rapids 1% Apr -09 30- Jun -2014 17.76M relief Council Bluffs 1% 1 -Apr 8.47M Streets and Sewers Davenport 1% Jan -89 15.43M 60% Property Tax Relief, 40% Capital Improvements and Equipment Ames 1% Jan -87 6.72M 60% Property Tax Relief, 40% Community Betterment 60% Property Tax Relief, 20% Sioux City 1% Jan -87 12.05M Infrastructure Projects, 10% City Facilities, 10% EDX * Iowa City's LOST expired in FY2013. The Chart only includes those communities with a LOST 01/04/2013 Iowa City FY 2015 Budget Proposal 13 01/04/2013 Iowa City FY 2015 Budget Proposal All Funds Revenue Comparison of FY2014 versus FY2015 Taxes Other City Taxes Licenses & Permits Use of Money & Prop Intergovernmental Charges for Services Misc. Other Financial Sources Total Note: Excludes Transfers 01/04/2013 FY2014 FY2015 Amended Proposed $ 50,307,189 $ 51,605,450 $ 5,197,929 $ 3,247,124 $ 2,194,336 $ 2,265,527 $ 7,021,322 $ 2,263,791 $ 63,706,524 $ 40,911,280 $ 33, 067, 340 $ 3%11115,542 $ 6,167,477 $ 6,522,542 $ 29,082,128 $ 13,533,417 $ 196,744,245 $ 159,464,673 Iowa City FY 2015 Budget Proposal Percent Change 2.6% -37.5% 3.2% -67.8% -35.8% 18.3% 5.8% -53.5% -18.9% All Funds Revenue Sources Misc. 4% Other Financial Sources 9% Property Taxes 32% Charges for Services 25% Intergovernmental 26% r City Taxes 2% Licenses & Permits 1% Use of Money & Prop 1% 01/04/2013 Iowa City FY 2015 Budget Proposal 16 FY2015 General Fund Revenue Misce I Charges for Fees i Services 3% Intergovernmental 7% Use of Money & Property 1% Licenses & Permit 3% Other Ci 5 (excludes transfers) Other Financing Sources n no/ erty Taxes 61% 01/04/2013 Iowa City FY 2015 Budget Proposal 17 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 O $2,500 $2,000 $1,500 $1,000 $500 100% Assessed vs. Taxable Valuations 01/04/2013 Iowa City FY 2015 Budget Proposal ku. FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 1100% Assessed $3,293 $3,807 $3,928 $4,264 $4,376 $4,450 $4,520 $4,616 $4,668 $4,827 Change, Assessed 3.2% 15.6% 3.2% 8.5% 2.6% 1.7% 1.6% 2.1% 1.1% 3.4% (Taxable $2,082 $2,320 $2,386 $2,522 $2,634 $2,712 $2,800 $2,913 $2,989 $3,090 Change, Taxable 2.6% 11.5% 2.9% 5.7% 4.4% 3.0% 3.3% 4.0% 2.6% 3.4% Taxable %of Total 63.23% 60.94% 60.75% 59.16% 60.19% 60.94% 61.94% 63.11% 64.03% 64.02% 01/04/2013 Iowa City FY 2015 Budget Proposal ku. Utilities w/o Full Valuation ,idential 74% Cor A€ Utilities w/o Residential 62% Taxable Valuation 01/04/2013 Iowa City FY 2015 Budget Proposal 19 $5 $4 $3 $2 $1 01/04/2013 Iowa City FY 2015 Budget Proposal *Projected 20 0,000,000 0,000,000 0,000,000 0,000,000 0,000,000 $ FY2010 FY2011 FY2012 FY2013 FY2014* FY2015* ■Tax Dollars $45,318,072 $47,825,752 $49,542,641 $50,416,210 $50,307,189 $51,605,450 %Change 5.10% 5.53% 3.59% 1.76% -0.22% 2.58% 01/04/2013 Iowa City FY 2015 Budget Proposal *Projected 20 Iowa City Property Tax Rate Trend $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Iowa City Tax Rate 17.596 17.314 17.729 17.302 17.297 17.717 17.853 17.757 17.842 17.269 16.805 16.705 Percent Change 4.66% -1.60% 2.40% -2.41% -0.03% 2.43% 0.77% -0.54% 0.48% -3.21% -2.69% -0.60% 01/04/2013 Iowa City FY 2015 Budget Proposal 21 $1,000,000 $950,000 $900,000 $850,000 $750,000 $700,000 ■ Hotel Motel Tax • Gas /Electric Excise Tax • Utility Franchise Tax FY 2012 $813,896 $857,553 $826,450 FY 2013 $834,324 $819,662 $880,871 FY 2014* $940,000 $786,706 $830,000 FY 2015* $850,000 $785,215 $895,000 *Projected 01/04/2013 Iowa City FY 2015 Budget Proposal 22 01/04/2013 Iowa City FY 2015 Budget Proposal Public Safety Public Works Culture & Recreation Community & Economic Development General Government Debt Service Capital Projects Proprietary/ Business -Type Funds *Total Expenditures less Transfers FY2014 Amended Budget $22,262,143 $7,483,926 $13,235,647 $11,844,272 $7,762,622 $13,496,700 $92,256,292 $46,667,343 $215,008,945 FY2015 Proposed Budget $22,382,870 $7,595,415 $13,197,263 $13,314,161 $8,058,202 $13,780,399 $50,528,591 $45,669,826 $174,526,727 Percent Change 0.54% 1.49% -0.29% 12.41% 3.81% 2.10% - 45.23% -2.14% - 18.83% 01/04/2013 Iowa City FY 2015 Budget Proposal 24 MOM 111 50,000,000 �[IIIIIIIIIIIIQ C 1 111 111 NOINKOM 10,000,000 01/04/2013 FY2015 Expenditures by Category & Percent Change from 2014 Amended Budget *excludes transfers Public Safety Public Works Culture& Community& General Debt Service Capital Enterprise Recreation Economic Government Projects Funds Development Iowa City FY 2015 Budget Proposal 20.00% 10.00% `m 0.00% > `o a- 10 00% o I ao 20.00% m L U c 30.00% v - 40.00% - 50.00% a 25 Personnel $35,471,910 $36,176,164 1.98% Services $8,745,699 $8,561,545 -2.11% Supplies $1,563,406 $1,395,290 - 10.75% Capital Outlay $4,416,602 $3,853,603 - 12.75% Debt Service $2,300,000 $2,000,000 - 13.04% Contingency $296,946 $387,000 30.33% Total Expenditures* $52,794,563 $52,373,602 -0.80% *Excludes Transfers Out 01/04/2013 Iowa City FY 2015 Budget Proposal 26 a 0 r.,IhA 1% -.,or A 0/ 01/04/2013 Iowa City FY 2015 Budget Proposal Personnel Services Supplies Capital Outlay Debt Service Contingency 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 City of Iowa City MFPRSI Contributions FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Actual Revised Proposed Budget Budget Police 945,238 1,287,313 1,335,528 1,655,139 1,745,122 Fire 708,350 989,978 1,047,168 1,254,314 1,304,305 Total 1,653,588 2,277,291 2,382,697 2,909,453 3,049,427 ■ % Change in Total Contribution ■ Fire ■ Police 01/04/2013 Iowa City FY 2015 Budget Proposal 28 WEIRS • Total Employer Contribution Rate for 2014, 16.58 %. Pension Plan @ 8.93 %, SS @ 6.2 %, Medicare @ 1.45 %. and Long Term Disability @ $4.8 per $1,000 or 0.0048%. MFPRSI /411 • Total Employer Contribution Rate for 2014, 31.57 %. Pension Plan @ 30.12 %, Medicare @ 1.45 %. City's Contributions for IPERS and MFPRSI $35,000.00 $30,000.00 $25,000.00 $20,000.00 $15,000.00 $10,000.00 $5,000.00 01/04/2014 $50,000.00 $75,000.00 $100,000.00 Salary Levels Iowa City FY 2015 Budget Proposal 111111111111111111111111111PERS @ 16.58% �MFPRSI @ 31.57% 29 Worker's Compensation Medical Expense • The Iowa Code 411, Chapter 6 mandates the City to pay for the medical costs for retired employees in MFPRSI system. It spells out that disease of heart, lungs, and respiratory tract including cancer or other infectious disease are presumed to have been contracted while on active duty for police and fire. MFPRSI $250,735 IPERS $421,145 Total $671,880 *Workforce 23% $465,751 $181,509 $140,446 $219,513 $606,197 $401,022 MFPRSI ■ IPERS $299,332 $260,368 $559,700 Medical Expenses 47% 53% 53% 47% 100% * Calculated using the FY 2013 numbers 01/04/2014 Iowa City FY 2015 Budget Proposal 30 01/04/2013 Iowa City FY 2015 Budget Proposal • State of Iowa limitation of no more than 5% of total assessed property value Iowa City projected to be at 1.3% of total valuations • Iowa City policy that debt service levy shall not exceed 30% of the total City levy in any fiscal year The projected debt service levy is approximately 25% of the total levy • Debt restructuring and elimination is a critical component of the strategy to red uce the property tax rate 01/04/2013 Iowa City FY 2015 Budget Proposal 32 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 C: 01/04/2013 General Obligation Debt by Fiscal Year FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 *FY16 *FY17 Iowa City FY 2015 Budget Proposal ■ State of Iowa Debt Limit ■ Iowa City Outstanding GO Debt 33 Distribution of Moody's General Obligation Ratings for All US Cities 1000 m 800 — aj 700 v V 600 ° 500 L — z 300 Iowa City 200 100 0 Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baal Baa3 Bal ■ National* 196 283 947 675 733 225 67 60 18 12 7 *Data As Of 7/11/2013 01/04/2013 Iowa City FY 2015 Budget Proposal 34 20 18 16 14 of N t 12 U 4- 10 v Distribution of Moody's General Obligation Ratings for Cities in Iowa ■ ■ 3 V z 6 Iowa City 4 2 0 Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baal Baa3 ■Iowa* 4 8 11 11 19 9 2 0 2 0 01/04/2013 Iowa City FY 2015 Budget Proposal 35 01/04/2013 MA Iowa City FY 2015 Budget Proposal • Reserves: o General Fund contingency at 3/4 percent of expenditures ($387,000 for FY 2015) o General Fund operating cash balance target of 15 -25% o Excess General Fund reserves should be used for debt retirement, property tax relief measures, and /or transferred to the City's Emergency Fund Other funds reserve levels vary based on the nature of business, bond covenants, and actuarial studies • Debt Financing: o Debt Service levy not to exceed 30% of total property tax levy o Use of "pay -as- you -go" whenever feasible and practical 01/04/2013 Iowa City FY 2015 Budget Proposal 37 5,167,627 843,550 4,032,763 2,968,530 13,283,613 4,559,962 8,075,239 4,256,3 9,242,556 2,008,715 3,017,982 32,126 5,288,063 835,601 322,091 68,415 1,202,321 - 687,580 25,000 7,393,837 - 01/04/2013 4,238,247 1,343,550 6,544,321 110,388 10,332,884 8,459,962 8,075,239 4,256,3 6,424,812 1,679,996 4,304,572 1,892,476 4,744,816 85.01% 2,412,096 36.25% 20,828,758 9,860,329 10,968,429 58.49% 9,416,678 4,675,018 4,741,660 35.91% -` 482,832 10 4,375,589 1,397,087 23,790,851 20,703,026 3,087,825 53.49% 358,380 32,126 361,730 100,000 261,730 67.02% 705,953 - 1,479,206 - 1,479,206 222.89% 688,566 80,000 1,445,431 270,059 1,175,372 152.93% 7,343,842 44,737 6,500,070 3,104,190 3,395,880 45.96% Iowa City FY 2015 Budget Proposal 38 01/04/2013 Estimated Property Tax on $100.000 Residential Valuation (Iowa City portion) FY 2014 Assessed Valuation Taxable Valuation City Levy Property Taxes Difference FY2014q� FY2015 14 $100,000 $52,816 $16.805 $888 Iowa City FY 2015 Budget Proposal $100,000 $54,415 $16.705 $909 $21 39 Iowa City Property Taxes Paid on a $500,000 Commercial Property $9,000 $8,800 A projected reduction of $986 over a four year period $8,600 ::::m 0 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400 FY 2012 FY 2013 FY 2014 FY 2015 rty Taxes 1 $8,921 $8,634 1 $8,403 $7,935 Note: FY 2015 includes a 5% reduction in the taxable value as well as the drop in the City's municipal tax rate. It does not include tax credits that were made available in the 2013 reform legislation 01/04/2013 Iowa City FY 2015 Budget Proposal 40 Proposed Rate Increases: o Refuse Fund • Monthly fee increased $.40 from $11.40 to $11.80 for an annual impact of $4.80 per customer o Water Fund • Noted potential for the increase in FY 14 budget and determined it necessary this year • Proposal is for 5% increase in rates for both FY 15 and FY 16 • 2008 water rate study noted need for a rate increase and recommended an 8% increase over FY10 and FY 11 (these increases were never implemented) • Last three rate changes (2003, 2004 and 2006) were all decreases of 5% o Miscellaneous Parks and Recreation Program Fees • Various adjustments in several programs and activities • Goal is for fees to recover 50% of department program costs 01/04/2013 Iowa City FY 2015 Budget Proposal 41 • Reasons for Fee Increases Maintaining a relationship between fees and program costs to avoid an over - reliance on property taxes or deteriorating cash flows in Enterprise Funds Needed infrastructure improvements in the Water Fund with insufficient annual surplus to cover the expenses o Strong fund balances intended to maintain strong bond ratings 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 01/04/2013 Iowa City FY 2015 Budget Proposal 42 Annual Financial Impact to the Average Household � ,JUU.uu $2,000.00 $1,500.00 $1,000.00 $500.00 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 � Property Taxes $814 $833 $866 $876 $888 $909 � Stormwater $24.00 $24.00 $30.00 $36.00 $42.00 $42.00 � Refuse $174.00 $186.00 $186.00 $186.00 $186.00 $191.00 � Sewer - 800 cubic feet $432.96 $432.96 $432.96 $432.96 $432.96 $432.96 � Water -- 800 cubic feet $328.08 $328.08 $328.08 $328.08 $328.08 $344.48 - Percent of annual change 1.9% 1.8% 2.2% 0.9% 0.9% 2.3% Based on a residential customer with $100,000 property valuation. Total estimated financial impact is $42 more per year ($3.50 per month) in FY 2015 compared to FY 2014 01/04/2013 Iowa City FY 2015 Budget Proposal 10.0% 9.0 8.0 7.0 6.0 5.0 4.0 3.0% 2.0% 1.0% 0.0% 43 • Creation of an Emergency Fund to provide additional stability, protect against a sudden loss of revenue or increase in unfunded mandates, and make the community more resilient through disaster relief and mitigation funding • Continued progress in making the community more affordable and economically competitive with our property tax rate • Status quo service levels with one new Engineering position and a net reduction of 7.5 FTEs from FY 2014 to FY 2015 • Building fiscal integrity to ensure maintenance of Moody's Aaa bond rating Strong reserves Ample contingency funds o Measured rate increases 01/04/2013 Iowa City FY 2015 Budget Proposal 44 • Continued emphasis on flood mitigation, critical infrastructure, and Strategic Plan initiatives: • Gateway Project • NWTP demolition and site restoration o West Side Levee • Significant water main projects (incl. Washington Street, First Avenue, Slothower Road and Wade Street) • Sycamore Street and new elementary school partnership • Dubuque 1 -80 pedestrian bridge o First Avenue grade separation Moss Ridge Road o Towncrest streetscape • New parkingfacility in RFC • Riverside drive streetscape planning and pedestrian tunnel • Iowa River Trail (Benton to Sturgis Park) • Burlington improvements (Madison to Riverside and Clinton) • Neighborhood park improvements (Mercer, Willow Creek/ Kiwanis and others) Implementation of Ad -hoc Diversity Committee recommendations New sustainable investments fund and LED conversion projects 01/04/2013 Iowa City FY 2015 Budget Proposal 45 • Merger of Planning and Community Development (PCD) & Housing and Inspection Services (HIS) • Enhance efforts toward strategic plan goals: • Facilitate more comprehensive healthy neighborhood strategies • Bolster economic development activities • Heighten sustainability efforts • Improve internal communications and create a more seamless transition in the development process from planning review to permitting and through the inspection phases o Improve long -term succession planning efforts by broadening employees' exposure to more city operations • Merger will involve shifting the personnel reporting and division structures • Aim is a budget neutral department merger with no employee layoffs • Minor expenses associated with position reclassifications or office space reconfigurations will come from existing budget authority or will require City Council approval Changes to positions that require City Council approval will begin in FY 14 with full implementation planned for early FY 15 • Increasingly common organizational structure in local government 01/04/2013 Iowa City FY 2015 Budget Proposal 46 Looking Ahead — Streamlined Operations HIS Director Building ,I Housing ,I Housing Division Division Authority running ana Community Development Director Economic Community Urban Planning I Neighborhood MPOJC Development Development Services Looking Ahead — Streamlined Operations City Manager Director of Neighborhood and Community Development Sustainability IN Economic Coordinator in Development Staff MPOJC Neighborhood Services Housing Authority Staff Housing Inspections Staff Community Development Staff Department Staff Community Development Services Urban Planning Staff Building Inspections Staff • Unprecedented construction boom in Iowa City has commenced • University • School District • Lucas, Twain, Sycamore, American Legion and City High work prior to FY 17 GO Bond • City • Private Sector • Impact on the bidding environment is yet to be determined but may drive up costs considerably and force the City to consider delays in projects • Staff resources will be stretched to manage projects and accommodate construction needs Iowa City construction Iowa City and Me surrounding area will see a construction boom for public and private devaropment Mich Me Iowa City Area Development Group estimates at more Nan $2 billion in Me Bent several lean. For the complete map including Me surrounding areas, visit our vebade wecreamemoet _ A Park Rd. HEY ` z -- A © Under construction 1 z Future protect ° ©' R- N o © y 6. - -- O p o O fA Iowa Ave. A a E. Burlington St. ! ��., IOWA CRY 1.1 A 1. Gateway Pmleo• (2015 - 2017): S40 million 2. Hancber Auditorium (March 2013 - May 2016): $176 million 3 IN 4. AM School (Aug 2013 - May 2016): $77 million spurt heaaen two buildings &]heater building (Sept. 2013 -Aug. 2015): $13.7 million S. Iowa Advanced Ilchmbgy labHanson 2014 -MaiM 2015): $18.2 million T. Iowa Memorial Union (Sept 2013 -June 2015): $27 million & Seashore Area Modemb Wn• R0A): $105 million S. The Chauncey (2014 - 2016): $53.8 million 10. 4 Zero 4/ New Pioneer Co -0ow (IBA): A/a 11. radial (rail 2013 - Into Dec.): $10.7 million 12. Je0erson Binding- (W): n/a 13. Holiday Inn & Suites and Shabuoth, Suites* (2014): n/e 10. Music School building (April 2013 - Sept 2016): $153 million 15. Mitlwest0ne office (Oct 2013 -Spring 2015): n/a 1& Perking lots with townhomes neat to Midw Wne (2016): $15 million 17. College of Fngineering addmon• (IBA): $31) million 10. Ubrery renovation' (rWU: $31.2 mill" 18. Stanley Hydraulics building (Sept 2013 - Sept 2014): $1.9 million 20. Residence Hall (Summer 2012 -Spring 2015): $53 million 21. Promise, building (IBA): $96.3 million 22. Children's Hospital and panting ramp (Oct 2013 - SDdng 2016): $357 million •nom ameal Cnyd here Crp Un raven of Iowa, roam Cory SWOT UMnc1 G. grand. 01/04/2013 Iowa City FY 2015 Budget Proposal 49 • Federal Tightening revenue sources impacting CDBG & HOME, Housing Authority, Transit, Airport and Capital programs • State of Iowa o Rollback Taxes • Public safety pension expenses • Uncertain changes in road use tax 01/04/2013 Iowa City FY 2015 Budget Proposal 50 • Utility Franchise Tax • Cities allowed up to a 5% fee on select utilities • Iowa City's 1% tax will generate an estimated $895,000 in FY 15 • $602,000 for operations (Fire Station #4 and ROW maintenance) • $293,000 for CIP projects in the ROW City Council can designate specific uses of the revenue 6 of the 11 comparable communities to Iowa City have a rate 2% or greater 01/04/2013 Iowa City FY 2015 Budget Proposal 51 • Local Option Sales Tax Countywide election initiated by governing bodies representing half of the population or by petition of residents o All cities contiguous to each other are treated as one large incorporated area. The tax can only be imposed if the majority of those voting in the total contiguous area approve the tax. o Distribution formula: D= (.75xPxZ) +(.25xVxZ) D = distribution for the taxing jurisdiction P = jurisdiction percentage of the population (most recent census) V = jurisdiction percentage of the property tax levied (1982 -1985) Z = the total collections for the county in which the jurisdiction is located. o Iowa City's annual collection would likely exceed $10 million o Staff recommends forming a study committee and consulting with other communities in Johnson County to gauge interest 01/04/2013 Iowa City FY 2015 Budget Proposal 52 01/04/2013 Iowa City FY 2015 Budget Proposal