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
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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)
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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)
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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.