Loading...
HomeMy WebLinkAbout2014-04-15 Public hearingNOTICE OF PUBLIC HEARING Notice is hereby given that a public hearing will be held by the City Council of Iowa City, Iowa, at 7:00 p.m. on the 15th day of April, 2014, in Emma Harvat Hall, City Hall, 410 E. Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk; at which hearing the Council will consider: An ordinance amending Title 14: Zoning, adding Article 14 -2G, Riverfront Crossings Form -based Development Standards, and amending other parts of Title 14 to integrate the form -based code. Copies of the proposed ordinances are on file for public examination in the office of the City Clerk, City Hall, Iowa City, Iowa. Persons wishing to make their views known for Council consideration are encouraged to appear at the above - mentioned time and place. MARIAN K. KARR, CITY CLERK Shared/pcd/publichearing �Ib 7 NOTICE OF PUBLIC HEARING Notice is hereby given that the City Council of Iowa City will hold a public hearing on the 15th day of April, 2014, at 7:00 p.m. in the Emma J. Harvat Hall of the Iowa City City Hall, 410 E. Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk; at which hearing the Council will consider a Resolution Authorizing Conveyance of 430 South Lucas Street, also described as Lot 5, Block 1, Berryhill's Second Addition, Iowa City, Iowa, to an income - eligible family. Copies of the proposed resolution are on file for public examination in the office of the City Clerk, City Hall, Iowa City, Iowa. Persons wishing to make their views known for Council consideration are encouraged to appear at the above - mentioned time and place. MARIAN K. KARR, CITY CLERK n NOTICE OF PUBLIC HEARING Notice is hereby given that a public hearing will be held by the City Council of Iowa City, Iowa, at 7:00 p.m. on the 15 day of April, 2014, in Emma J. Harvat Hall, 410 E. Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk; at which hearing the Council will consider: A Resolution adopting the Johnson County Multi - Jurisdictional Hazard Mitigation Plan. A copy of the proposed Johnson County Multi - Jurisdictional Hazard Mitigation Plan is on file for public examination in the office of the City Clerk, City Hall, Iowa City, Iowa until April 15. Persons wishing to make their views known for Council consideration are encouraged to appear at the above - mentioned time and place. MARIAN K. KARR, CITY CLERK CITY OF IOWA CITY LZ ..,..� MEMORANDUM Date: April 7, 2014 To: Tom Markus, City Manager From: Dennis Bockenstedt, Director of Finance Re: Public Hearings for 2014 General Obligation Bond Issue There are six public hearings on the 2014 General Obligation bonds for the formal City Council meeting next week. Attached is a spreadsheet identifying the projects, the amount of funding required, and the Iowa statute denoting the purpose classification. The first two public hearings for the Essential Corporate Purpose Bonds in the amount of $8,350,000 for public improvements and for bond refunding and in the amount of $3,200,000 for urban renewal projects. Our bond attorney, Mark Cory, reviews our projects to determine under which purpose they should be classified. The projects that are deemed Essential Corporate Purpose by Iowa state code do not have a $700,000 project expense cap and are not subject to reverse referendum. The four remaining public hearings are for General Corporate Purpose Bonds. This classification of bonds restricts the city from issuing more than $700,000 in general obligation bonds per project and subjects the city to a reverse referendum within 30 days of adoption of the resolution. These public hearings are for $300,000 for public building improvements at City Hall, $150,000 for public building improvements at the Iowa City Public Library, $400,000 for public works facility improvements, and $550,000 for other improvements (UniverCity). Attached is a summary of the capital projects being funded by the 2014 general obligation bond issue. These projects are identified by their purpose classification. The difference between the project costs and the resolution amounts are for issuance expenses that include bond attorney fees, publications, financial advisor fees, and the underwriter's discount. The resolutions contain a combined contingency amount for these costs of $1,136,785 or 9.6% of the combined project costs, however, the total for these expenses are typically under 2% of the total issuance. 2014 General Obligation Bonds Project Schedule by Purpose Proiect Name Description General Purpose General Essential - Public Purpose Purpose Building - Other GO Bond 2014 Project Totals $10,659,050 $654,165 $500,000 This urban renewal project will provide a transportation link from Hwy 1 to properties west of the Moss Ridge Road (urban renewal) Pearson property. The project will $ 1,890,000 include paving, sidewalk, sanitary sewer, water main, traffic signals, and storm sewer improvements. This project will construct an 1st Ave /IAIS RR Crossing overpass to replace the at -grade $ 1,000,000 Improvements crossing of the IAIS Railroad and First Avenue. This project will reconstruct the Sycamore Street - City Limits to S. north -south leg of Sycamore Street $ 2,500,000 Gilbert between Langenberg and the east - west leg of Sycamore Street. CBD Streetscape Project (urban Implement CBD streetscape urban $ 1,000,000 renewal) renewal improvements Normandy Drive Restoration Project Park development in the Normandy Drive area $ 409,050 Removal of the wading pool and construction of a splash pad. The City Park Master Plan & Pool Upgrade Project also expands the lawn area surrounding the pool to allow for $ 650,000 more seating and picnic areas. To prepare a City Park Master Plan. Willow Creek/Kiwanis Park Master Plan This project will develop a master plan for two parks. $ 50,000 Library Public Space Remodeling Building improvements to public service areas at library - phase 2 $100,000 Replacing aging Self Contained Fire SCBA/Air System Replacement Breathing Apparatus (SCBA)and $ 500,000 air cylinders To purchase downtown rental UniverCity Neighborhood Partners properties, refurbish them, and $500,000 return them to single family homes 2016 & 2017 Maturities of the 2006C & To refund outstanding GO Bonds $ 2,660,000 2007A GO Bonds To update public works facility Public Works Facility Master Plan master plan and to develop $310,000 conceptual and phasing plans City Hall -Other Projects City Hall building improvements $244,165 GO Bond 2014 Project Totals $10,659,050 $654,165 $500,000 The Mayor announced that this was the time and place for the public hearing and meeting on the matter of the issuance of not to exceed $3,200,000 General Obligation Bonds, Series 2014, in order to provide funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal projects, including sidewalk, sanitary sewer, water main, traffic controls, storm sewer improvements and streetscaping improvements, an essential corporate purpose, and that notice of the proposed action by the Council to institute proceedings for the issuance of the bonds, had been published pursuant to the provisions of Section 384.25 of the City Code of Iowa. The Mayor then asked the City Clerk whether any petition had been filed in the Clerk's Office, in the manner provided by Section 362.4 of the City Code of Iowa, and the Clerk reported that no such petition had been filed, requesting that the question of issuing the bonds be submitted to the qualified electors of the City. The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the issuance of the bonds. The Clerk advised the Mayor and the Council that 0 written objections had been filed. The Mayor then called for oral objections to the issuance of the bonds and 0 were made. Whereupon, the Mayor declared the time for receiving oral and written objections to be closed. (Attach here a summary of objections received or made, if any) -2- Publish 4/3 NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $3,200,000 GENERAL OBLIGATION BONDS, SERIES 2014, (FOR AN ESSENTIAL CORPORATE PURPOSE) OF THE CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City of Iowa City, State of Iowa, will hold a public hearing on the 15th day of April, 2014, at 7:00 o'clock R.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $3,200,000 General Obligation Bonds, Series 2014, for an essential corporate purpose of said City, in order to provide funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal projects, including sidewalk, sanitary sewer, water main, traffic controls, storm sewer improvements and streetscaping improvements. At any time before the date of said meeting, a petition, asking that the question of issuing such Notes be submitted to the legal voters of said City, may be filed with the Clerk of said City in the manner provided by Section 362.4 of the City Code of Iowa, as amended. At the above meeting the Council shall receive oral or written objections from any resident or property owner of the City, to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the issuance of bonds or will abandon the proposal to issue bonds. This notice is given by order of the City Council of the City of Iowa City, State of Iowa, as provided by Section 384.25 of the City Code of Iowa. Dated this 3rd day of April, 2014. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) 0 The Mayor announced that this was the time and place for the public hearing and meeting on the matter of the issuance of not to exceed $8,350,000 General Obligation Bonds, Series 2014, in order to provide funds to pay costs of: a. the acquisition, construction, reconstruction, enlargement, improvement, and repair of bridges, culverts, retaining walls, viaducts, underpasses, grade crossing separations, and approaches thereto; b. the opening, widening, extending, grading, and draining of the right -of -way of streets, highways, avenues, alleys and public grounds; the construction, reconstruction, and repairing of any street improvements; the acquisition, installation, and repair of sidewalks, storm sewer, water mains and traffic control devices; and the acquisition of any real estate needed for any of the foregoing purposes; c. the rehabilitation and improvement of parks already owned, including the removal, replacement and planting of trees in the parks, and facilities, equipment, and improvements commonly found in city parks; d. the equipping of the fire department; e. the acquisition, construction, reconstruction, and improvement of real and personal property, useful for the protection or reclamation of property situated within the corporate limits of cities from floods or high waters, and for the protection of property in cities from the effects of flood waters, including the development and beautification of the banks and other areas adjacent to flood control improvements; f. the remediation, restoration and improvement of property that has been damaged by a disaster as defined in section 29C.2 and that is located in an area that the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster; and g. the settlement, adjustment, renewing, or extension of any part or all of the legal indebtedness of a city, whether evidenced by bonds, warrants, or judgments, or the funding or refunding of the same, whether or not such indebtedness was created for a purpose for which general obligation bonds might have been issued in the original instance, essential corporate purposes, and that notice of the proposed action by the Council to institute proceedings for the issuance of the bonds, had been published pursuant to the provisions of Section 384.25 of the City Code of Iowa. -2- The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the issuance of the bonds. The Clerk advised the Mayor and the Council that 0 written objections had been filed. The Mayor then called for oral objections to the issuance of the bonds and 0 were made. Whereupon, the Mayor declared the time for receiving oral and written objections to be closed. (Attach here a summary of objections received or made, if any) -3- Publish 4/3 {0 NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $8,350,000 GENERAL OBLIGATION BONDS, SERIES 2014, (FOR ESSENTIAL CORPORATE PURPOSES) OF THE CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City of Iowa City, State of Iowa, will hold a public hearing on the 15th day of April, 2014, at 7:00 o'clock P.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $8,350,000 General Obligation Bonds, Series 2014, for essential corporate purposes of said City, in order to provide funds to pay costs of: a. the acquisition, construction, reconstruction, enlargement, improvement, and repair of bridges, culverts, retaining walls, viaducts, underpasses, grade crossing separations, and approaches thereto; b. the opening, widening, extending, grading, and draining of the right -of -way of streets, highways, avenues, alleys and public grounds; the construction, reconstruction, and repairing of any street improvements; the acquisition, installation, and repair of sidewalks, storm sewer, water mains and traffic control devices; and the acquisition of any real estate needed for any of the foregoing purposes; c. the rehabilitation and improvement of parks already owned, including the removal, replacement and planting of trees in the parks, and facilities, equipment, and improvements commonly found in city parks; d. the equipping of the fire department; e. the acquisition, construction, reconstruction, and improvement of real and personal property, useful for the protection or reclamation of property situated within the corporate limits of cities from floods or high waters, and for the protection of property in cities from the effects of flood waters, including the development and beautification of the banks and other areas adjacent to flood control improvements; f. the remediation, restoration and improvement of property that has been damaged by a disaster as defined in section 29C.2 and that is located in an area that the governor has proclaimed a disaster emergency or the president of the United States has declared a major disaster; and g. the settlement, adjustment, renewing, or extension of any part or all of the legal indebtedness of a city, whether evidenced by bonds, warrants, or judgments, or the funding or refunding of the same, whether or not such indebtedness was created for a purpose for which general obligation bonds might have been issued in the original instance. At the above meeting the Council shall receive oral or written objections from any resident or property owner of the City, to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the issuance of bonds or will abandon the proposal to issue bonds. This notice is given by order of the City Council of the City of Iowa City, State of Iowa, as provided by Section 384.25 of the City Code of Iowa. Dated this 3rd day of April, 2014. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) Publish 4/3 NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $300,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, SERIES 2014 (FOR A GENERAL CORPORATE PURPOSE), AND HEARING ON ISSUANCE OF BONDS Public Notice is hereby given that the Council of the City of Iowa City, State of Iowa, will hold a public hearing on the 15th day of April, 2014, at 7:00 o'clock P,.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the Council proposes to take action for the issuance of not to exceed $300,000 of General Obligation Bonds, Series 2014 (for a general corporate purpose), bearing interest at the rate of not to exceed nine (9) per centum per annum, the bonds to be issued for the purpose of providing funds to pay costs of the construction, reconstruction, enlargement, improvement, furnishing and equipping of the City Hall. At any time before the date of the meeting, a petition, asking that the question of issuing such bonds be submitted to the legal voters of the City, may be filed with the City Clerk of the City in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.26 of the Code of Iowa. This Notice is given by order of the Council of the City of Iowa City, State of Iowa, as provided by Section 384.26 of the Code of Iowa. Dated this 3rd day of April, 2014. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) r� Publish 4/3 NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $150,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, SERIES 2014 (FOR A GENERAL CORPORATE PURPOSE), AND HEARING ON ISSUANCE OF BONDS Public Notice is hereby given that the Council of the City of Iowa City, State of Iowa, will hold a public hearing on the 15th day of April, 2014, at 7:00 o'clock P.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the Council proposes to take action for the issuance of not to exceed $150,000 of General Obligation Bonds, Series 2014 (for a general corporate purpose), bearing interest at the rate of not to exceed nine (9) per centum per annum, the bonds to be issued for the purpose of providing funds to pay costs of the construction, reconstruction, enlargement, improvement, furnishing and equipping of the Library. At any time before the date of the meeting, a petition, asking that the question of issuing such bonds be submitted to the legal voters of the City, may be filed with the City Clerk of the City in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.26 of the Code of Iowa. This Notice is given by order of the Council of the City of Iowa City, State of Iowa, as provided by Section 384.26 of the Code of Iowa. Dated this 3rd day of April, 2014. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) Publish 4/3 (,3 NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $400,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, SERIES 2014 (FOR A GENERAL CORPORATE PURPOSE), AND HEARING ON ISSUANCE OF BONDS Public Notice is hereby given that the Council of the City of Iowa City, State of Iowa, will hold a public hearing on the 15th day of April, 2014, at 7:00 o'clock P.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the Council proposes to take action for the issuance of not to exceed $400,000 of General Obligation Bonds, Series 2014 (for a general corporate purpose), bearing interest at the rate of not to exceed nine (9) per centum per annum, the bonds to be issued for the purpose of providing funds to pay costs of any other purpose which is necessary for the operation of the city or the health and welfare of its citizens, including plans for the public works facility and parks. At any time before the date of the meeting, a petition, asking that the question of issuing such bonds be submitted to the legal voters of the City, may be filed with the City Clerk of the City in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.26 of the Code of Iowa. This Notice is given by order of the Council of the City of Iowa City, State of Iowa, as provided by Section 384.26 of the Code of Iowa. Dated this 3rd day of April, 2014. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) Publish 4/3 NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $550,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, SERIES 2014 (FOR A GENERAL CORPORATE PURPOSE), AND HEARING ON ISSUANCE OF BONDS Public Notice is hereby given that the Council of the City of Iowa City, State of Iowa, will hold a public hearing on the 15th day of April, 2014, at 7:00 o'clock P.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the Council proposes to take action for the issuance of not to exceed $550,000 of General Obligation Bonds, Series 2014 (for a general corporate purpose), bearing interest at the rate of not to exceed nine (9) per centum per annum, the bonds to be issued for the purpose of providing funds to pay costs of any other purpose which is necessary for the operation of the city or the health and welfare of its citizens, including engineering and planning for flood prevention and the purchase of downtown rental properties and improvement of said properties for return to single family residence. At any time before the date of the meeting, a petition, asking that the question of issuing such bonds be submitted to the legal voters of the City, may be filed with the City Clerk of the City in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.26 of the Code of Iowa. This Notice is given by order of the Council of the City of Iowa City, State of Iowa, as provided by Section 384.26 of the Code of Iowa. Dated this 3rd day of April, 2014. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) 1� NOTICE OF PUBLIC HEARING Notice is hereby given that a public hearing will be held by the City Council of Iowa City, Iowa, at 7:00 p.m., on the 15th day of April, 2014, in City Hall, Emma Harvat Hall, 410 E. Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk; at which hearing the Council will consider: Ordinance amending Title 3, Entitled "Finances, Taxation and Fees," Chapter 4, entitled "Schedule of Fees, Rates, Charges, Bonds, Fines and Penalties," Section 5, entitled "Solid Waste Disposal," of the City Code to increase solid waste charges. Copies of the proposed ordinance are on file for public examination in the office of the City Clerk, City Hall, 410 E. Washington St., Iowa City, Iowa. Persons wishing to make their views known for Council consideration are encouraged to appear at the above - mentioned time and place. MARIAN K. KARR, CITY CLERK ! tit CITY OF IOWA CITY z MEMORANDUM 1 Date: March 14, 2014 To: Tom Markus, City Manager From: Dennis Bockenstedt, Finance Director RE: FY2015 Refuse Collection rate increase Introduction During the fiscal year 2015 budget process, it is part of the budget process to review service charges and fees to ensure that revenue projections are meeting the cost of providing services. The Refuse Collection fund was one of the funds that was identified where projected revenues were falling behind projected expenditures. In addition, the fund balance level in the Refuse Collection fund was already at a minimum level of 14.96% of expenditures. History /Background The current refuse collection service charge is $11.40 per month. The increase proposed as part of the fiscal year 2015 budget was for an increase of $.40 per month or an increase of approximately 3.5 %. The last rate increase for refuse collection services was five years ago in July 2009 for $.50 per month. Last year (fiscal year 2014), miscellaneous refuse fees were also increased for yard waste stickers, bulky items, tire collection, and other miscellaneous charges. Discussion of Solution In order to continue to address the increased cost of operations and the need to have a financially stable and self- sufficient Refuse Collection fund, the proposed solution is to adopt an ordinance that increases the monthly refuse collection fee by $.40 per month. Financial Impact The proposed fee increase is expected to generate an estimated additional $73,000 per year of revenue for the Refuse Collection fund. This additional revenue gives the fund a projected increase in cash balance of $11,177 in fiscal year 2015 rather than a projected decrease of $61,823. The impact on the average household is $4.80 per year Recommendation It is staff's recommendation to adopt the ordinance as presented amending the City's refuse collection charges to incorporate the proposed fee increase of $.40 per month that will be effective on July 1, 2014. 17 NOTICE OF PUBLIC HEARING Notice is hereby given that a public hearing will be held by the City Council of Iowa City, Iowa, at 7:00 p.m., on the 15`h day of April, 2014, in City Hall, Emma Harvat Hall, 410 E. Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk; at which hearing the Council will consider: Ordinance amending Title 3, Entitled "Finances, Taxation and Fees," Chapter 4, entitled "Schedule of Fees, Rates, Charges, Bonds, Fines and Penalties," Section 3, entitled 'Potable Water Use and Service," of the City Code to increase water service charges and fees. Copies of the proposed ordinance are on file for public examination in the office of the City Clerk, City Hall, 410 E. Washington St., Iowa City, Iowa. Persons wishing to make their views known for Council consideration are encouraged to appear at the above - mentioned time and place. MARIAN K. KARR, CITY CLERK A CITY OF IOWA CITY MEMORANDUM Date: March 18, 2014 To: Tom Markus, City Manager From: Dennis Bockenstedt, Finance Director RE: FY2015/FY2016 Water rate increases Introduction During the fiscal year 2015 budget process, it is part of the budget process to review service charges and fees to ensure that revenue projections are meeting the cost of providing services. The Water fund is one of the funds that has been identified where projected revenues are falling behind projected expenditures. In addition, the cash balance level in the Water fund has declined for the last three consecutive years and is projected to continue to decline. History /Background In May 2008, HDR Engineering completed a comprehensive water rate study for the City. In that study, they identified the City's challenge to maintain capital funding rates equal to or greater than depreciation to ensure the replacement of existing infrastructure. They also recommended that the City implement rate increases of 5% in fiscal year 2010 and 3% in fiscal year 2011 to fiscal year 2017. Since that study, the City has not implemented any of the recommended rate increases. The previous three water rate adjustments were in fiscal years 2003, 2004, and 2007 and were all rate decreases of 5 %. In fiscal year 2011, the Water fund had an ending unassigned cash balance of $10,065,355. At the end of fiscal year 2013, that balance has decreased to $7,242,696. Over that same time period, the Water fund spent $4,436,612 in capital projects funding and was the primary reason for the decrease in cash balance. In fiscal year 2015, the Water fund's unassigned cash balance is projected to decrease to $4,741,660. This is a decrease in cash balance of 52.9% in just four years primarily due to capital improvement expenditures. The City's five -year capital improvement program projects water funding for capital projects over the next three years to be $4,782,272. This figure does not include the cost of repairing emergency water main breaks. Discussion of Solution The Water fund is an enterprise or a business -type fund that is expected to be self- funding. The primary solution is to review water rates and charges to ensure that the fund is generating sufficient revenue to cover its expenses. By implementing a user rate increase of 5% in fiscal year 2015 and 5% in fiscal year 2016, the anticipated decline in the Water fund's cash balance is greatly reduced. This solution also provides for a much healthier and sustainable fund over time versus financing the necessary capital improvements through revenue bonds or other debt. Over time, the bonded debt payments would actually require greater rate increases due to their coverage ratios, reserve requirements, interest charges, and long -term payment schedules. Other miscellaneous water fees and rates have also been reviewed and are proposed to be adjusted to reflect the actual cost of providing those services. The fee for bulk water was adjusted to reflect a similar rate that was being charged for metered water (from $.55 per 200 gallons to $.50 per 100 gallons). In addition, fees for water meter accuracy checks (from $62 to $77), staff overtime services for water meter /hydrant problems (from $70 to $80), and inspection /operation of private fire hydrants (from $88 to $91) were evaluated and adjusted based on the actual staff and equipment costs to provide those private services. The last fee reviewed was the water main extension fee; this fee was last reviewed prior to the construction of the new water plant. The water main extension fee is generally intended to recover a portion of the capital construction cost that the other system users have had to bear. This fee is April 7, 2014 Page 2 currently being proposed to increase at the same rate as the water user charges, 5% in both fiscal years 2015 and 2016. This fee would increase from $395 per acre to $415 per acre in fiscal year 2015 and $435 per acre in fiscal year 2016. In addition to the proposed changes to the above rates and charges, the new ordinance removes the listing of charges for water meters. Water meters are charged to customers based upon the actual cost of the meter to the City; therefore, the rates listed in the previous ordinances were continually becoming outdated, and the City was not recovering their full cost. The City Attorney's office has determined that these charges are not required by Iowa State Code to be listed in the ordinance. It is staff's recommendation that these reimbursement rates be removed from the water rate ordinance and subsequently be adjusted annually by resolution so that they can be updated more quickly to reflect the City's actual cost. Financial Impact The proposed fee increases are expected to generate an estimated additional $408,392 in fiscal year 2015 and $428,812 in fiscal year 2016. This additional revenue is not projected to keep the Water fund's cash balance from decreasing but should slow the pace of decline substantially. The Water fund's cash balance is still budgeted to decrease by $1,099,508 in fiscal year 2015 and by $334,514 in fiscal year 2016. Recommendation It is staff's recommendation to adopt the ordinance as presented amending the City's water use charges and other service charges.