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Home My WebLink AboutFY16 Budget ReportJanuary 10, 2015 LM I January 10th: Operating Budget Review January 12th: Capital Improvement Plan March 9th: Public Hearing March 9th: Formal Adoption 01/10/2015 Iowa City FY 2016 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 01/10/2015 Iowa City FY 2016 Budget Proposal Transmittal Letter and Document Overview Financial and Fiscal Policies Preparation of the Financial Plan (Process) Target general fund balance increased to 30% per Moody's Aaa city guidelines Summary Information Fund Overview General Fund Special Revenue Funds Grants and Dedicated Revenues (e.g. Road Use Tax) Tax Increment Financing (TIF) Debt Service Fund Enterprise Funds (Business -Type) Internal Service Funds Capital Improvement Program (CIP) • Supplemental Information (Including Comparative Analysis) 01/10/2015 Iowa City FY 2016 Budget Proposal 4 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 Utilize Strategic Plan priorities to guide financial decisions 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 01/10/2015 Iowa City FY 2016 Budget Proposal Preparation for impact of property tax reform Continue transfers to the 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 Limit the growth in operational costs with minimal service level impacts Continued reduction in the overall property tax rate 1.1 % growth in taxable valuation primarily due to increased rollback Tax rate reduced by 6.6% since FY12 ($17.842 to $16.655) FY16 rate will be the lowest Iowa City rate since FY2002 01/10/2015 Iowa City FY 2016 Budget Proposal 6 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) Water (previously approved 5% increase in FY 15 and FY 16) Landfill tipping fee ($4.00 increase per ton) Neighborhood and Development Services: $100 minor site plan application; increase from $250 to $350 for major site plans; $25 for official zoning letters; eliminate waiver for public building permits; 5% rental fee increase Aggressive Capital Improvement Program (CIP) Flood mitigation Critical infrastructure Resources made available for Strategic Plan priorities 01/10/2015 Iowa City FY 2016 Budget Proposal July 1, 2014 (FY 2015) • 95% rollback on commercial, industrial, railroad • Residential and agricultural limited to 3% statewide annual growth • Cumulative 10 year loss of $21 million Residential 62.0% 60.0/u 56.0%io 56.0% 54.0% 52.0% Rollback Estimated Trends (FY14-24) - Projected taxable % with 4% limitation *-�' 7;�W Projected taxable % with 3% limitation FY74 I FY15 I FY161 FY17 I FY18 I FY19 I FY201 FY21 I FY221 FY23 FY24 �4%limitation 52.8% 54.4% 56.5% 56.5% 58.5% 57.9% 59.9% 59.1% 61.0% 59.8% 61.6% �3%limitation 52.8% 54.4% 55.9% 55.4% 56.8% 55.7% 57.0% 55.7% 56.9% 55.2% 56.3% July 1, 2015 (FY 2016) • 90% rollback on commercial, industrial, railroad • Continues at this rate in perpetuity • FY16 backfill = approx. $2 million $2 million annually equates to approximately: • 1/5 of Police Field Operations expenditures • 1/3 of Fire Emergency Ops expenditures • 1/3 of Library expenditures • 2/3 of Parks expenditures • 2/3 of Trash Collection • All of Aquatics PLUS all of Senior Center expenditures • All of Hotel/Motel PLUS all of Utility Franchise revenue July 1, 2016 (FY 2017) • Multi -residential property class is broken out from Commercial and is taxed at a declining rate — 86.25% of value will be taxed in FY17 • Taxable percentage will decrease each year until it matches residential in FY 2024 • Projected cumulative loss over ten years beginning in FY2017 is over $15 million with no backfill Multi -residential taxable % of property FY17 86.25% FY18 82.50% FY19 78.75% FY20 75.00% FY21 71.25% FY22 67.50% FY23 63.75% Taxable % of Property "Rollback" 110.00% 100.00.X 90.00 80.00% 70.00% 60.00 50.00% 40.00% 30.00% 1978 1983 1988 1993 1998 2003 2008 2013 2018 Residential* Commercial —Industrial —Multi -residential `Residential after assessment year 2014 are projected percentages 01/10/2015 Iowa City FY 2016 Budget Proposal City Waterloo Council Bluffs ITM LTA an =I - Davenport Iowa City* Sioux City Cedar Rapids Coralville West Des Moines North Liberty Dubuque Ames XPUliiHill F71zfm $17.95 $17.75 $16.92 $16.78 $16.71 $16.36 $15.22 $13.53 $12.05 $11.03 $11.03 $10.86 * Projected Iowa City tax rate for FY 2016 is $16.66. Iowa City's FY2012 rate was $17.84. 01/10/2015 Iowa City FY 2016 Budget Proposal Water Sewer Waste Storm Total Rank North Liberty $40.60 $48.36 $9.75 $2.00 $100.71 1 Davenport $38.27 $39.46 $10.74 $2.42 $90.89 2 Des Moines $19.03 $34.46 $22.42 $10.33 $86.24 3 Iowa City* $28.71 $36.08 $15.90 $3.50 $84.19 4 Sioux City $31.45 $34.54 $15.44 $0.83 $82.26 5 West Des Moines $30.30 $34.80 $11.25 $4.25 $80.60 6 Ames*** $27.12 $31.08 $0.00 $3.45 $61.65 12 Dubuque $23.22 $31.98 $12.74 $5.60 $73.54 7 Cedar Rapids $26.95 $21.49 $19.63 $4.90 $72.97 8 Council Bluffs** $32.56 $17.21 $16.00 $0.00 $65.77 9 Coralville $17.80 $24.02 $19.00 $2.00 $62.82 10 Waterloo $19.08 $24.38 $15.50 $2.75 $61.71 11 *Projected FY 2016 Water rate is $30.15 **Council Bluffs rates are FY2014 * * *Ames and North Liberty trash collection provided by private contractors 01/10/2015 Iowa City FY 2016 Budget Proposal 12 City North Liberty 0% Davenport 0% West Des Moines 0% Ames 0% Coralville 1% Iowa City 1% Cedar Rapids 2% Council Bluffs 2% Waterloo 3% Dubuque 3% Sioux City 5% Des Moines 7.5% 01/10/2015 Iowa City FY 2016 Budget Proposal 13 FY15 Year Sunset Estimated Citv Rate Effective Year Receipts P Cedar Rapids 1% 2009 2024 $17,740,000 100% Street Repair 60% Property Tax Relief, 40% Capital Davenport 1% 1989 None $15,480,000 Improvements and Equipment 60% Property Tax Relief, 20% Infrastructure Projects, 10% City Sioux City 1% 1987 None $11,750,000 Facilities, 10% EIDx Waterloo 1% 1991 2025 $9,530,000 100% Street Repair Council Bluffs 1% 1990 None $9,430,000 100% Streets and Sewers 50% Property Tax Relief, 20% City Facilities Maintenance, 30% Special Dubuque 1% 1988 None $7,980,000 Assessment Relief 60% Property Tax Relief, 40% Ames 1% 1987 None $7,160,000 Community Betterment * Iowa City's LOST expired in FY 2013 and generated approximately $8.8 million annually. 01/10/2015 Iowa City FY 2016 Budget Proposal 14 01/10/2015 Iowa City FY 2016 Budget Proposal All Funds Revenue Comparison of FY2015 versus FY2016 Taxes Other City Taxes Licenses & Permits Use of Money & Prop Intergovernmental Charges for Services Misc. Other Financial Sources Total Note: Excludes Transfers 01/10/2015 Iowa City FY 2016 Budget Proposal 16 FY2015 FY2016 Percent Adopted Proposed Change $ 5176087730 $ 5290319859 0.8% $ 372477124 $ 398109044 17.3% $ 272657527 $ 292499335 -0.7% $ 272637791 $ 290169112 -10.9% $ 4079847912 $ 3092949615 -26.1% $ 3971157542 $ 4090869092 2.5% $ 675227542 $ 590329647 -22.8% $ 1375337417 $ 1494039630 6.4% $ 15975417585 $ 14999249334 -6.0% Iowa City FY 2016 Budget Proposal 16 Other Financi Sources 10% M 2 Excludes transfers Charges for Intergov't Services 20% 27% ether City Taxes 3% Licenses & Permits 1% Use of Money & Prop 1% 01/10/2015 Iowa City FY 2016 Budget Proposal 17 Excludes transfers 01/10/2015 Property Taxes 11.1 y Taxes 0 Licenses & Permits 5% Use of Money & Property 1% I ntergov't 8% Charges for Fees & Misc Services 10% 3% Iowa City FY 2016 Budget Proposal Other Financing Sources 2% 1S 100% Assessed vs. Taxable Valuations $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 FY07 FY08 FY09 FY10 FY11 FY12 I FY13 I FY14 I FY15 I FY16 100% Assessed $3,807 $3,928 $4,264 $4,376 $4,450 $4,520 $4.616 $4.668 $4.827 $4.941 % Change, Assessed 15.6% 3.2% 8.5% 2.6% 1.7% 1.6% 2.1% 1.1% 3.4% 2.4% —M—Taxable $2,320 $2,386 $2,522 $2.634 $2.712 $2.800 $2.913 $2.989 $3,090 3,135 % Change, Taxable 11.5% 2.9% 5.7% 4.4% 3.0% 3.3% 1 4.00/( 1 2.6% 3.4% 1.5% Taxable % of Total 60.94% 60.75% 59.16% 60.19% 60.94% 61.94% 163.11% 164.03% 64.02% 63.45% 01/10/2015 Iowa City FY 2016 Budget Proposal 19 AAWAgricultural 0% Commercial 23% Residential 75% Industrial 2% Railroads 0% Utilities w/o Gas/Electric 0% Full Valuation Agricultural Residential 65% Taxable Valuation Commercial 33% Industrial 2% Railroads Utilities w/o 0% Gas/Electric 0% 01/10/2015 Iowa City FY 2016 Budget Proposal 20 % of Property Tax Revenue by Classification Commercial Rollback: FY14 none; FY15 95%; FY16 90% Residential Rollback: FY14 52.82%; FY15 54.40%; FY16 55.73% Multi -family will be broken out from Commercial in FY17 and taxed at a decreasing rate each year until FY 2024 01/10/2015 Iowa City FY 2016 Budget Proposal 21 $60.000.000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10.000.000 $ 2011 2012 20138 2014 2015' 2016' ■ Property Taxesl $47,825,754 $49,542,640 $50,416,210 $50,046,477 $51,608,730 $52,031,859 °k Change 1 5.53% 3.59% 1.76% -0.73% 2.59% 0.82% 01/10/2015 Iowa City FY 2016 Budget Proposal 'Projected 22 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 Iowa City Property Tax Rate Trend =..I $12.00 FY06 FY07 FY08 FY09 FY10 FY11 F 1 FY13 FY14 FY15 FY16 ■ Iowa City Tax Rate 17.729 17.302 17.297 17.717 17.853 17.757 17.842 17.269 16.805 16.705 16.655 Percent Chance 2.40% -2.41% -0.03% 2.43% 0.77% -0.54% 0.48% -3.21% -2.69% -0.60% -0.30% 01/10/2015 Iowa City FY 2016 Budget Proposal 23 $1,200,000 $1,000,000 $600.000 $400,000 $200,000 $0 FY 2011 FY 2012 FY 2013 FY 2014 ■ Hotel Motel Tax $776,501 $813,896 $871,706 $967,049 ■ Gas/Electric Excise Tax $819,975 $857,553 $819,662 $780,458 ■ Utility Franchise Tax $725,478 $826,450 $918,229 $1,031,187 01/10/2015 Iowa City FY 2016 Budget Proposal 24 01/10/2015 Iowa City FY 2016 Budget Proposal $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 FY2016 Expenditures by Category & Percent Change from Previous Year Adopted Budget excludes transfers Public Safety Public Works Culture & Community & General Debt Service Capital Business Type Recreation Economic Government Projects Activities Development 01/10/2015 Iowa City FY 2016 Budget Proposal 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% -60.0% 26 Personnel Services Supplies Capital Outlay Contingency Debt Service Total Expenditures* *Excludes Transfers Out 01/10/2015 $36,237,779 $9,022,831 $1,488,904 $5,048,197 $318,281 $2,000,000 $54,115,992 $36,945,831 $9,050,189 $1,439,533 $2,125,032 $367,000 $400,000 $50,327,585 Iowa City FY 2016 Budget Proposal `W)+STA 0.30% -3.32% I M FA LaSVA 15.31% -7.00% 27 Excludes transfers Personnel 73% 01/10/2015 Services 18% A Iowa City FY 2016 Budget Proposal Contingency 1% Supplies 3% Capital Outlay 4% Other Financial Uses 1% 28 ■ Fire ■ Police Total % Chan 01/10/2015 City of Iowa City MFPRSI Contributions 3.500.000 3.000.000 2.500.000 2.000.000 1.500.000 1.000.000 500.000 0 from Prior Year FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Actual Actual Actual Actual Revised Proposed Budget 1,304,305 Budget 722,838 961,815 1,052,753 1,226,921 1,210,012 962,911 1,251,111 1,344,954 1,688,246 1,745,122 1,590,115 1,685,748 2,212,926 2,397,707 2,915,167 3,049,427 2,800,127 25.10% 31.27% 8.35% 21.58% 4.61% -8.18% Iowa City FY 2016 Budget Proposal 29 IPERS Total Emalover Contribution Rate: 16.5848% Pension Plan 8.9300% Social Security 6.2000% Medicare 1.4500% Long Term Disability 0.4800% MFPRSI Total Employer Contribution Rate: 29.2200% Pension Plan 27.770% Medicare 1.4500% $35.000.00 $30.000.00 $25.000.00 $20.000.00 $15.000.00 $10.000.00 $5.000.00 01/10/2015 City's Contributions for IPERS and MFPRSI $50,000.00 $75,000.00 $100,000.00 Salary Levels Iowa City FY 2016 Budget Proposal IPERS @ 16.5848% MFPRSI @ 29.22% 30 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 $465.751 $250,735 $325.061 IPERS $140.446 $421.145 $329.689 Total $606.197 $671.880 $654.749 Workforce* * Workforce on 12/24/14 - includes temp staff 01/10/2015 ■ MFPRSI ■ IPERS Iowa City FY 2016 Budget Proposal $347.182 $297.093 $644.275 Medical Expenses** °3 Year average 31 01/10/2015 Iowa City FY 2016 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 specifies that debt service levy shall not exceed 30% of the total City levy in any fiscal year The projected debt service levy is approximately 24% of the total levy Debt restructuring and elimination continues to be a critical component of the strategy to reduce the property tax rate 01/10/2015 Iowa City FY 2016 Budget Proposal 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 General Obligation Debt by Fiscal Year ■ State of Iowa Debt Limit 213,180,682 218,807,526 222,492,980 226,007,105 230,776,387 233,415,950 241,332,359 247,029,309 251,969,895 257,009,293 ■ Iowa City Outstanding GO Debt 84,995,000 75,050,000 80,575,000 75,320,000 61,205,000 67,075,000 63,110,000 64,385,000 63,790,000 60,629,500 Debt as a % of Limit 39.9% 34.3% 36.2% 33.3% 26.5% 28.7% 26.2% 26.1% 25.3% 23.6% Debt as% of Total Valuation 2.0% 1.7% 1.8% 1.7% 1.3% 1.4% 1.3% 1.3% 1.3% 1.2% 01/10/2015 Iowa City FY 2016 Budget Proposal *Projected 34 m U w 0 L d E z Distribution of Moody's General Obligation Ratings for All US Cities 700 600 500 400 Iowa City 300 200 100 0 LTa Aal Aa2 Aa3 Al A2 A3 Baal Baal Baa3 ■ National 1 178 252 780 573 563 204 65 52 28 14 % of Total 1 6.5-1 9.30°h 28.79% 1 21.15% 1 20.78% 1 7.53% 1 2.40% 1 1.92% 1.03% 0.52% 01/10/2015 Iowa City FY 2016 Budget Proposal 35 Distribution of Moody's General Obligation Ratings for Cities in Iowa 20 18 16 14 N d U 12 w C 10 d E 8 z' 6 Iowa City 4 2 0 Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baal Baa3 ■ State 2 6 13 13 19 9 2 0 2 0 % of Total 3.03% 9.09% 19.70% 19.70% 28.79% 13.64% 3.03% 0.00% 3.03% 0.00°h 01/10/2015 Iowa City FY 2016 Budget Proposal 36 01/10/2015 Iowa City FY 2016 Budget Proposal 5,328,876 4,206,668 3,245,511 12,965,154 4,688,036 9,412,456 2,010,716 3,057,022 - 5,833,264 1,076,415 324,100 121,929 1,140,978 - 8,055,240 3,270,015 891,437 6,879,486 215,651 10,268,609 7,538,036 8,423,501 3,664,016 3,088,438 - 4,437,980 825,327 346,072 114,000 786,064 500,000 7,537,903 45,184 4,229,819 385,583 4,605,487 1,336,718 17,739,133 9,653,245 11,018,086 4,218,079 770,171 - 24,058,430 22,399,923 617,739 100,000 1.643.602 - 6,083,951 2,885,424 3,844,236 92.38% 3,268,769 46.07% 8,085,888 45.41% 6,800,007 56.26% 770,171 24.94% 1,658,506 31.51% 517,739 112.53% 1,643,602 127.80% 3,198,527 42.18% 01/10/2015 Iowa City FY 2016 Budget Proposal 38 01/10/2015 Estimated Property Tax on $100.000 Residential Valuation (Iowa City portion) F5 II II F$9086 $909 Assessed Valuation $100,000 $100,000 Taxable Valuation $54,402 $55,734 City Levy $16.705 $16.655 Property Taxes $909 $928 Difference $19 Iowa City FY 2016 Budget Proposal Iowa City Property Taxes Paid on a $500,000 Commercial Property $9,500 $9,000 $8,500 $8,000 $7,500 $7,000 A projected reduction of $1,426 over a five year period $6,500 �-- , E FY2012 FY2013 FY2014 FY2015 FY2016 City Property Taxes $8,921 $8,634 � $8,403 $7,935 $7,495 Note: FY2016 includes a state mandated 10% 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 01/10/2015 Iowa City FY 2016 Budget Proposal 40 Proposed Rate Increases: Water Fund Previously -adopted 5% increases in FY15 and FY16 Last three rate changes (2003, 2004 and 2006) were all decreases of 5% Necessary to fund needed infrastructure improvements Miscellaneous Parks and Recreation Program Fees Various adjustments in several programs and activities Goal is for fees to recover 50% of department program costs Landfill Tipping Fee Proposed increase of $4 per ton Necessary to fully fund replacement reserves Development Services Fees: $100 minor site plan application, $100 increase ($250 to $350) for major site plans, eliminate public facility permit fee exemption, $25 for zoning letters Neighborhood Services Fees: 5% increase in rental inspection fee to keep up with operational costs 01/10/2015 Iowa City FY 2016 budget Proposal Cil ann �L,JV V $2,000 $1.500 $1,000 $500 $0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Property Taxes $833 $866 $876 $888 $909 $928 Stormwater $24 $30 $36 $42 $42 $42 Refuse $186 $186 $186 $186 $191 $191 Sewer - 800 cubic feet $433 $433 $433 $433 $433 $433 � Water-- 800 cubic feet $328 $328 $328 $328 $344 $362 Total $1,804 $1,843 $1,859 $1,877 $1,919 $1,955 —Percent Change 1.7% 2.2% 0.9% 0.9% 2.3% 1.9% Based on a residential customer with $100,000 property valuation. Total estimated financial impact is $36 more per year ($3.00 per month) in FY 2016 compared to FY 2015 01/10/2015 Iowa City FY 2016 Budget Proposal 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 42 14 al Continued funding of the 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 a net reduction of 8.74 FTEs from FY 2015 to FY 2016 Building fiscal integrity to ensure maintenance of Moody's Aaa bond rating 01/10/2015 Iowa City FY 2016 Budget Proposal Continued emphasis on flood mitigation, critical infrastructure, and Strategic Plan initiatives: Flood mitigation Gateway, NWWTP demolition, Animal Center completion, Rocky Shore Drive, West Side Levee Critical infrastructure 1 st Avenue grade separation, significant water main projects (Washington St., 1St Ave., Wade St.), Sewer main replacements, Sycamore St., American Legion Rd., Mormon Trek Healthv Neiahborhoods Mercer Park Playground, Iowa Creek Park, Frauenholtz-Miller partnership River Trail, Pheasant Hill Park, Willow Park, ICCSD recreation facility Economic Development Towncrest, Riverfront Crossings, Moss Ridge 01/10/2015 Iowa City FY 2016 Budget Proposal • Shifting of Solid Waste and Landfill operations from Public Works to Transportation Services Public Works department continues to be stretched thin with flood recovery work and an aggressive capital improvement plan Recent and anticipated retirements of longtime Public Works personnel will necessitate even more management attention on divisional operations Recent overhaul of parking policies and major capital improvements are completed and Transportation Services has capacity and staff expertise to expand their scope. Solid Waste and Landfill operations have veteran staff to ensure smooth transitions and no service disruptions Will allow for more time to be dedicated to studying ways to bolster recycling efforts, including analyzing single stream options, composting programs, and methods to better serve multiple - family dwellings and downtown alleyways Collaboration between Solid Waste, Landfill and other Public Works divisions will need to remain strong • Change will involve a new supervisory position, not currently in the FY 16 proposal Currently one position supervises both the Landfill and Wastewater operations. Solid Waste is managed by the Streets Division. Landfill and Wastewater operations have grown extensively in the last two decades and City will be better served splitting this one position into two. Wastewater and Landfill budgets have operating capacity to expand to a full-time supervisor • Changes to positions that require City Council approval will begin in FY 15 with the full transition competed in FY 16 01/10/2015 Iowa City FY 2016 Budget Proposal 45 Looking Ahead —Streamlined Operations Public Works Engineering. Equipment I Water I Wastewater / Landfill Transportation Services Parking Transit Streets (incl. Solid Waste) Future Operations * Includes Solid Waste and Landfill 01/10/2015 Iowa City FY 2016 Budget Proposal ml- m University Children's Hospital (2016 completion - $292 million) Hancher Auditorium (2016 completion - $176 million) School of Music (2016 completion - $152 million) 2 new dorms (2015/$53 million; 2017/$80-90 million) School District City Planned prior to FY17: Twain, Lucas, Longfellow, City High renovations; Alexander, new Hoover construction Gateway, 1St Ave. Grade Separation, NWWTP Demolition, Washington St., Moss Ridge, Sycamore St. Private Sector MidwestOne Office, Riverside Dr. apartments, Kinseth Hotel, Court/Linn, College/Gilbert 01/10/2015 Iowa City FY 2016 Budget Proposal 48 Federal Tightening revenue sources impacting CDBG & HOME, Housing Authority, Transit, Airport and Capital programs State of Iowa Rollback taxes and stability of state backfill c Volatile public safety pension expenses c Uncertain changes in road use tax 01/10/2015 Iowa City FY 2016 Budget Proposal IN Utility Franchise Tax Cities allowed up to a 5% fee on select utilities Iowa City's 1 % tax will generate an estimated $995,000 in FY 2016 Approximately $670,000 for operations (Fire Station #4 and ROW maintenance) Approximately $325,000 for CIP projects in the ROW City Council can designate specific uses of the revenue 6 of the 10 comparable communities to Iowa City have a rate 2% or greater 01/10/2015 Iowa City FY 2016 Budget Proposal Local Option Sales Tax Flood -related LOST sunset 6/30/13 — generated $9 million/year November 2014 election Measured failed in metro block 46% - 54% Measure passed in Hills (64/36), Lone Tree (63/37), Solon (58/42), Swisher (56/44), and West Branch (68/32) Failed in Shueyville (49/51), Oxford (49/51), and Unicorporated County (47/53) Metro block results: City Yes No Iowa City 50.3 49.7 Coralville 37.5 62.5 North Liberty 39.1 60.9 U Heights 63.7 36.3 Tiffin 36.4 63.6 Exploring the possibility for another election; timing will be informed by discussions at state 2015 legislative session 01/10/2015 Iowa City FY 2016 Budget Proposal 51 01/10/2015 Iowa City FY 2016 Budget Proposal