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Home My WebLink About2015-01-10 Correspondence• January 10t":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 1/10/2015 1 1/10/2015 Work SessionAgenda • 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 0/10/2015 Iowa City FY 2016 Budget Proposal 3 Budget 11 II1 f 1 1 • 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 Budget Goals • 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 5 • 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 1/10/2015 3 Budget Highlights • Select rate increases proposed to reduce reliance on pproperty taxes, address infrastructure needs and maintain heaRhy reserves o 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) o 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 o Critical infrastructure • Resources made available for Strategic Plan priorities 0),/10/2015 Iowa Cdy F 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 Rasidsneal Rollbaok Estimated Trends ("1424) m_s ProJxbd bvble% War 4%Ilmbatbn mAY seax eQa* saax Prokstsd taxsbN % wilb a% Iim bacon sza• 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 anoroxirdately: • 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 1/10/2015 EI 1/10/2015 I Reform I Icts Yet to Come 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 • Pro ected cumulative loss over ten years beginning in FY2017 is over $15 million with no backfill Multi -residential Taxable X of Property "Rollback" taxable % of property FY17 86.25% FY18 82.50% FY19 78.75% FY20 75.00% FY21 71.25% FY22 67.50% FY23 63.75% 'Residential anerassessment year2014 are pmjeoted percentages va.aols 5 moms moor mwx — moox mma Awa oma lase �eea �aee xom moe —ResHentlal' �Lommerclal—Irdusleel—MUX4re5HeMlal m1a m�e Property Tax Levy $48.36 $9.75 City FY 2015 Tax Rate Waterloo $17.95 Council Bluffs $17.75 Des Moines $16.92 Davenport $16.78 Iowa City* $16.71 Sioux City $16.36 Cedar Rapids $15.22 Coralville $13.53 West Des Moines $12.05 North Liberty $11.03 Dubuque $11.03 Ames $10.86 * Projectedlowa City tar rate for FY2016 is $16.66. Iowa City's FY2012 rate was $17.64. 01/10/2015 Iowa City FY 2016 Budget Proposal 11 North Liberty $40.60 $48.36 $9.75 $2.00 $10071 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 Conahrille $17.80 $24.02 $19.00 $2.00 $62.82 10 Waterloo $19.08 $24.38 $15.50 $2.75 $61.71 11 *Projected FY2016 Watermte is $30.15 **Council Bluffs rates are FY2014 ***Ames and North Llberlytrash Collection provided by private contractors 01/10/2015 Iowa City FY 2016 Budget Proposal 12 1/10/2015 1.1 Council Bluffs FranchiseUtility I North Liberty 0% Davenport 0% West Des Moines 0% Ames 0% Coralville 104 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 Pr 2016 Budget Proposal 13 Council Bluffs 1% 1990 None $9,430,000 FY15 Year Sunset Estimated City Rate Effective Year Receipts Purpose Cedar Rapids 1% 2009 2024 $17,740,000 100%Street Repair Davenport 1% 1989 None $15,480,000 60% Property Tax Relief, 40% Capital Improvements and Equipment IowaCys LOSTexpladln f20l3andgenemMappr m M'Y$8.8mllitn annually. 01/10/2015 Iowa City FY 2016 Budget Proposal 60% Property Tax Relief, 20% Infrastructure Projects, 10% City Sioux City 1% 1987 None $11,750,000 Facilities, 10%EDX Waterloo 1% 1991 2025 $9,530,000 100% Street Repair Council Bluffs 1% 1990 None $9,430,000 100% Straets and Sewers 50% Property Tax Relief, 20% City Facilities Maintenance, 30% Special Dubuque 1% 1988 None $7,980,000 Assessment Relief Text f,4o36 Ames 1% 1987 None $7,160,000 CommunlryBetterment IowaCys LOSTexpladln f20l3andgenemMappr m M'Y$8.8mllitn annually. 01/10/2015 Iowa City FY 2016 Budget Proposal 14 1/10/2015 7 10wa City FY 2016 Budget Proposal 1/10/2015 El E All Funds Revenue Comparison of FY2015 versus FY2016 FY2015 FY2016 Percent Adopted Proposed Change Taxes $ 51,608,730 $ 52,031,859 0.8% Other City Taxes $ 3,247,124 $ 3,810,044 17.3% Licenses & Permits $ 2,265,527 $ 2,249,335 -0.7% Use of Money & Prop $ 2,263,791 $ 2,016,112 -10.9% Intergovernmental $ 40,984,912 $ 30,294,615 -26.1% Charges for Services $ 39,115,542 $ 40,086,092 2.5% Misc. $ 6,522,542 $ 5,032,647 -22.8% Other Financial Sources $ 13,533,417 $ 14,403,630 6.4% Total $ 159,541,585 $ 149,924,334 -6.0% Nate: Excludes Transfers 01/10/2015 Iowa City FY 2016 Budget Proposal 16 1/10/2015 El Other City Taxes 5% Licenses & Permits ! 5% 00 F Use of Money & Property h 1% # Intergov't 8% Charges for Fees & Misc Services 10% 3% Excludes transfers Other Financing Sources 01/10/2015 Iowa CityFY 2016 Budget Proposal 2% is 1/10/2015 F Other Financial Sources 10% _..... Other City Taxes . 3% _ Licenses & Misc Permits 3% 1% c.> Use of Money & Prop 1% Charges for Inter Services 20 27% Adw Excludes transfers Iowa City FY 2016 Budget Proposal 17 Other City Taxes 5% Licenses & Permits ! 5% 00 F Use of Money & Property h 1% # Intergov't 8% Charges for Fees & Misc Services 10% 3% Excludes transfers Other Financing Sources 01/10/2015 Iowa CityFY 2016 Budget Proposal 2% is 1/10/2015 F Full vs. Taxable Valuations by Sector Agd Rural Agricultural 8% ndusMal 2% Railroads 0% IndY'indl U[i6[ies wl0 2% GaslElectric Railroads o% Utilities wl0 0% Gas/Electric Full Valuation Taxable Valuation 0% 01/10/2015 Iowa City FY 2016 Budget Proposal 20 1/10/2015 •aO 1009%. Assessed vs. Taxable Valuations E5,500 E5000 $CSW MON �- $3500 w c $3.000 - - $2.500 ---- - c_ $3000 -_-. ----. -__. - ----. ----. $1,500 $1000 ---_ ----. --. moo FYW FY0FY 8 09 FY10 FY11 FY12 FY13 M4 FY15 M6-�-100%Assessed $380] $3928 i 8.1,264 1 $4,376 $4,450 &1520 54,618 $4,688 "4827 "1841 %Change Assessed 156% 32% 85% ' 2.8% 1 ]% 16% 2.1% 1.1% 3.4% 2.4% ';.Taxable $2320 $2,388 $2,522', $2,834 $2800 $2,913 $2,989 $3,0901 3,135 %Change Taxable _32.]12 115% 29% 57% 44% 30% 33% 40% 26% 34% 15% Taxable %of Total 6094%I60]5%15916% 60.19% 8099% 6t 94%.6311%.8403%i8402% 8345%, 0$/10/2015 lava City FY 2016 Budget Proposal 19 Full vs. Taxable Valuations by Sector Agd Rural Agricultural 8% ndusMal 2% Railroads 0% IndY'indl U[i6[ies wl0 2% GaslElectric Railroads o% Utilities wl0 0% Gas/Electric Full Valuation Taxable Valuation 0% 01/10/2015 Iowa City FY 2016 Budget Proposal 20 1/10/2015 •aO Shifting Burden i 1 Rollback Effect 1 ,. 6 % of Property Tax Revenue by Classification 7000% $60000,000 00.00% 30.00% 40.0096 30.00% 20.006 10.00 0,07% $50,000,000 FY14 FY15 FY16 -..___.- •Resi_tlential $40.000,000 59.64% __.._-.___... _ 61.E6% 64.8996 •Commercial $30.000000 37.39% 35.37% 32.72% Commercial Rollback: 1Y14none; FY7595%; FY7690% Residential Rollback: FY1452.82%; FY1554.40%; FYI 55.73% Multi -family will be broken out from Commercial In FY17 and taxed at a decreasing rote each year until FY 2024 01/10/2015 Iowa City FY 2016 Budget Proposal 21 Property i t 1 1 ,. 6 $60000,000 $50,000,000 $40.000,000 $30.000000 .......................U$20,000.000 _ $10,000,000 $ 2011 2012 2013 2016' •Property Taxes $47,825,754 $49,542,640 1 $50,416,210 $50,046,477 $51,608,730 $52,031,859 %Change 5.53% 3.59% 1.16% -0.73% 2.59% 0.826 'Projected 01./10/2015 Iowa City I'Y 2016 Budget Proposal 22 1/10/2015 11 1/10/2015 12 Major E ' 1 $1,200,000 1 Property Rate i $1,000,000 1 $800,000 Iowa City Property Tax Rate Trend $600,000 $400,000 an.op $200,000 Sta.00 $0 515.00 FV 2011 FY 2012 1 FY 2013 FY 2014 •Hotel Matel Tea St4.00 $813,896 T $871706 $967049 •GaslElectnc Excoe Tax. $1300 $857,553 — ! $780458 •Utility Franchise Tax $1200 $826,450 $918229 $1031187 01/10/2015 Iowa City FY 2036 Budget Proposal FY06 24 FY07 FY08 FV09 FY10 Ml FY12 FY13 FY14 FY15 FYI 6 •Iowa Cily Tax Rate 17.729 17.302 17.297 17 717 12853 17.757 17.642 17 269 16805 i6 705 16.655 Percent Change 2.40% -2.41% -0.03% 2.43% 0.77% 1 -0.54% 1 046% 01/10/2015 Iowa City FY 2016 Budget Proposal 23 1/10/2015 12 Major l 11 Revenue ' 1 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 molt $200,000 $0 FV 2011 FY 2012 1 FY 2013 FY 2014 •Hotel Matel Tea $776,501 $813,896 T $871706 $967049 •GaslElectnc Excoe Tax. $819,9]5 $857,553 $819662 ! $780458 •Utility Franchise Tax I,.. $725,478 $826,450 $918229 $1031187 01/10/2015 Iowa City FY 2036 Budget Proposal 24 1/10/2015 12 1/10/2015 13 i 9 FY2016 Expenditures by Category & Percent Change from Previous Year Adopted Budget Bxclutles irans4ers $50,000,000 20,0%9.6% s450oo,000 ------------ ' 1 10.0% 540.000000 2.9% ley° 10% ,05.000.000 - - - - 590p00,000 _ -100% 4]% 525,000,000 - _-__— .20.0% $0.000.000 _. _ -90.0% 515,000,000 J00% E10,000,000 O.M.000 _. __.... -50.0% Pubic Sehry Public Nods CUIWrtS Cwmunfty& G ceM Servim Gpeal BuType mml Reaealun Ecoiwmk Go�remment PmAdpds RdFMbs M"10~ 01,/10/2015 Iowa City F 2016 Budget Proposal 26 1/10/2015 13 1 General I ' Expenditures 1 '1 Personnel $36,237,779 $36,945,831 1.95% Services $9,022,831 $9,050,189 0.30% Supplies $1,488,904 $1,439,533 -3.32% Capital Outlay $5,048,197 $2,125,032 -57.91% Contingency $318,281 $367,000 15.31% Debt Service $2,000,000 $400,000 -80.00% Total Expenditures* $54,115,992 $50,327,585 -7.00% *Excludes Transfers Out 01/10/2015 Iowa City Py 2016 Budget Proposal 27 General 1 I ' Expenditures 1 '1 Excludes transfers Contingency �s 1% Supplies 3% Capital Outlay 4% Other Financial Uses 11 1% 01/10,12015 Iowa City FY 2016 Budget Proposal 28 1/10/2015 14 Public Safety P' IContributions City of Iowa City MFPRSI Contributions 3,500,000 3.000,000 2.500,000 _. 2,000,000 _. _...... 1,SM,MD 1,000,000 42015�FV 5Ml 0 2011 FY 2012 FY 2013 FV 2011 Actual Actual Actual Actual aFre 722,838 961,815 1,052753 1,225,821 1,304,305 1,210,012 a Pol ce 962,911 1,251,111 1,344954 1,688,246 1,745,122 1,590,115 Total - 1,685,748 2,212,826 2,397707 2,915,167 3,049,427 2,800,127 % Change from Prior Year 25.10% 3127% 8.35% 21.58% 4.61% -8.18% 01/ID/2015 Iowa Cut F 2016 Budget Proposal 29 (PERS Total Enlplover Contribution Rate: 16.6848% Pension Plan B W% Social Secudy 6.2000% Medicare 14500% Long Term Disability 0.48W% MFPRSI Total Employer Contribution Rate: 29.2200% Pension Plan 27.770% Medicare 14500% $M.MOM $30,000.00 W5,coam $20,000.00 $15,WOM $10,000.00 E5,000.00 01/10/2015 City's Contributions for (PERS and MFPRSI $50,000.00 $75,000.00 $100,OW00 Salary Levels lows City FY 2016 Budget Proposal e (PERS Q 16.5548% •MFPRSI Q 2922% 30 1/10/zois 15 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. MFPPSi $465,751 $250,735 $325.061 $347,182 IPEFS $140446 $421,145 $329,689 $297,093 Total $606,197 $671,880 $654,749 $644,275 Workforce* Medical Expenses** • MFPRSI 0 • IPER$ 03 near average • WOMarm on ]2/24/14-IrcN4es temp stdfl 01/10/2015 Iowa City FY 2016 Mget Rop0ae1 31 7 1/10/2015 16 Debt r t • 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% ci 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 OV10/2015 Iowa City FY 2016 Budget Proposal 33 General Obligation Debt by Fiscal Year 'Projected 01/10/2015 Iowa City FY 2016 Budget Proposal 34 1/10/2015 17 1/10/2015 Li' (od A1 1 Rating A1 1 1 • Distribution of Moody's General Obligation Ratings for All US Cities 900 _____ 20 900 18 700 to ___... $ em s 14 _ 12 8 500 B400__._..........._.......... U 10 ...... Iowa City E 9 z Iowa City z 300 6 4 200 2 0 Aae Aat Aa2 IAa3 Al A2 A9 Beal Baal Baa3 •Stale 100 13 13 19 9 2 0 2 0 ohm %of Total 3.03% 6.0e% _ 19]0% ( 1970%.. 28]9% 13.64% 3.03% 000% 303% 0.00% N 01,/10/2015 Iowa City FY 2016 Budget Proposal 0 Au Aai Aa2 Ae3 Al A2 A3 Beet Beat Baa3 _ a Nalionel 1]e 252 780 5]3 563 20{ 85 52 2B 14 %of TINal _ 65]% 9.306 128,79% 1 2115% 20 ]B% _ 7.53% 2.40% 192% 103% 0.529 01/10/2015 Iowa Clty FY 2016 Budget Proposal 35 1/10/2015 Li' A1 1 1 • Distribution of MOWS General Obligation Ratings for Cities In Iowa 20 18 to ___... 14 _ 12 U 10 a E 9 z Iowa City 6 4 2 0 Aae Aat Aa2 IAa3 Al A2 A9 Beal Baal Baa3 •Stale 2 8 13 13 19 9 2 0 2 0 %of Total 3.03% 6.0e% _ 19]0% ( 1970%.. 28]9% 13.64% 3.03% 000% 303% 0.00% 01,/10/2015 Iowa City FY 2016 Budget Proposal 36 1/10/2015 Li' 5,328876 - 3270,015 891437 4229,619 385,563 3,844,236 92.38% 4,206,668 3,245,511 6,679,486 215,651 4605,487 1,336,718 3,268,769 46.07% 12,965,154 4,688,036 10,268,609 7,536036 17,739,133 9,653,245 8,085,888 45.41% 9,412,455 2,010,716 8,423,501 3,664,016 11,018,086 4,218,079 6,800,007 56.26% 3,057,022 - 3,088,438 - 770,171 - 770,171 24.94% 5,833,264 1076,415 4,437,980 825,327 24,058,430 22,399,923 1,658,506 31.51% 324,100 121,929 346,072 114,000 617,739 100,000 517.739 112,53% 1,140,978 - 786,064 500,000 1,643,602 - 1,643,602 127.80% 8,055,240 7,537,903 45,184 6,083,951 2,885,424 3,198,527 42.18% 01/10/2015 Iowa City H 2016 Budget Proposal 38 1/10/2015 w 01/10/2015 Estimated Property Tax on 5100.000 Rea dentral Valuation (Iowa Cdy Bodoni, Assessed Valuation Taxable Valuation City Levy Property Taxes Difference $100,000 $100,000 $54,402 $55,734 $16.705 $16.655 $909 $928 $19 Iowa Cly FY 2019 Budget Proposal 39 Iowa City Property Taxes Paid on a $500,000 Commercial Property $9,500 A projected reduction of $1,426 over a five year period $9,000 - $8,500 $8,000 $7.500 ........... .__- __..................... $7,000 $6600 .e..nn.n'_._ �..on.o ___1 _--wo o.on.a 'i "'evon.e Note: FY2016 includes is 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 BY 2016 Budget Proposal 40 1/10/2015 20 11 • Budget I Proposed Rate Increases: o 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 o Miscellaneous Parks and Recreation Program Fees • Various adjustments in several programs and activities • coal is for fees to recover 50% of department program Costs o Landfill Tipping Fee • Proposed increase of $4 per ton • Necessary to fully fund replacement reserves o Development Services Fees: • $100 minor site plan application, $100 increase ($250 to $350) for major site plans, eliminate public facility permit fee exemption, $2 for zoning letters o Neighborhood Services Fees: • 5% increase in rental inspection fee to keep up with operational Costs 01/10/2015 Iowa City F 2016 Budget Proposal 41 Annual Financial i r I I Impact §2.500 100% SzO(K) 6.0% 7.0% §1,500 6.0% 60% §1,000 4.0% 30% 5500 2.0% 1.0% $0 0,0% FY2011 FY2012 FY2013 FY2014 FY2015 M016 Property Taxes $833 $856 $876 $888 $909 $928 �Stormwater $24 $30_ $36 $42 $42 $42 iiiiiii Refuse $186 , 1.__ $786 _ $186 T-8186 $191 $791 Sewer - BOO cubic teen. $433 I $433 $433 $433 $433 $433 r•Water—BOO wbicfeet $328 $328 $328 $328 $344 $362 Total $7,804 $1,843 $1,859 $7,877 $1,919 $1,955 —Percent Change i.7% 2.2% 09% 0.9% _ _......_.. 2.3% _ __.._... 1.9% B8,W00a eskientk1cwt,merwttn$100,woprow"aluewn. Totel estimated financkl knpact k $36 more per yaer ($3.00 per m onth) in fY 2016 compared to FY 2015 42 01/10/2015 Iowa City FY 2016 Budget Pmposel 1/10/2015 21 Budget Summary • 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 Imva City FY 2016 Budget Proposal 43 �� ' Summary 1 1 I Improvements . • 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't Avenue grade separation, significant water main projects (Washington St., list Ave., Wade St.), Sewer main replacements, Sycamore St., American Legion Rd., Mormon Trek Healthy Neighborhoods • Mercer Park Playground, Iowa River Trail, Pheasant Hill Park, Willow Creek Park, Frauenholtz-Miller Park, ICCSD recreation facility partnership Economic Development • Towncrest, Riverfront Crossings, Moss Ridge 01/10/2015 Iowa City FY 2016 Budget Proposal 44 1/10/2015 22 Looking Ahead Reorganizing Operations • Shifting of Solid Waste and Landfill operations from Public Works to Transportation Services r 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 o 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 o 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 o 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. o Wastewater and Landfill budgets have operating capacity to expand to a fullktime supervisor • Chanes to positions that require City Council approval will begin in FY 15 with the full transition completed in FY 16 01/10/2015 Iowa City H 2016 Budget Proposal 45 Looking Ahead — Streamlined Operations Existing Operations Public Works 01/10/2015 Ima City ly' 2016 Budget Nopmal 46 Engineering Equipment Water Wastewater/ Streets (inch: Landfill Solid Waste) Transportation Services yanking Transit 1/10/2015 23 Looking Ahead — Streamlined Operations Future Operations Public Works Includes Solid Waste and Landfill 0,/ 10/2015 Iowa City PY 2016 Budget Proposal 47 Engineering Equipment Water Wastewater Streets Transportation Services Sustainable Perking Transit Resource Management* Looking Ahead — Construction Boom University o Children's Hospital (2016 completion - $292 million) o HancherAuditorium (2016 completion - $176 million) o School of Music (2016 completion - $152 million) o 2 new dorms (2015/$53 million; 2017/$80-90 million) School District n Planned prior to FY17: Twain, Lucas, Longfellow, City High renovations; Alexander, new Hoover construction City e Gateway, 1 dAve. 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 1/10/2015 24 • Federal Tightening revenue sources impacting CDBG & HOME, Housing Authority, Transit, Airport and Capital programs • State of Iowa o Rollback taxes and stability of state backfill o Volatile public safety pension expenses o Uncertain changes in road use tax Ou10/2015 Iowa City FY 2016 Budget Proposal 49 Loo I 1 1 I' Diversification I I ' Revenue 11 king • Utility Franchise Tax Cities allowed up to a 5% fee on select utilities Iowa City's 1 IN 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 FV 2016 Budget Proposal 50 1/10/2015 25 Looki.ng Ahead — Diversification of Revenue • 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: Iowa Yes No owa 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 o 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 1/10/2015 26