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Home My WebLink AboutFY17 Budget Proposal.pptJanuary 9, 2016 LM I January 9: Operating Budget Review January 11: Capital Improvement Plan Review February 16: Setting of a Public Hearing March 1: Public Hearing/Adoption of Budget March 8: Certification with County Auditor 01/09/2015 Iowa City FY 2017 Budget Proposal City Manager Budget Overview General Government Public Safety Culture and Leisure Community and Economic Development Business -type Funds Public Works Budget Q & A and General Council Discussion 01/09/2015 Iowa City FY 2017 Budget Proposal Transmittal Letter and Document Overview Financial and Fiscal Policies Preparation of the Financial Plan (Process) Summary Financial 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) Capital Improvement Program (CIP) Internal Service Funds Supplemental Information (Including Comparative Analysis) 01/09/2015 Iowa City FY 2017 Budget Proposal 4 Continue to implement steps to respond to the property tax shortfall resulting from the 2013 legislative changes while maintaining service levels Maintain the City's Moody's Aaa bond rating Maintain an affordable tax and fee environment for residents and businesses 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 • Provide resources to achieve Strategic Plan goals 01/09/2015 Iowa City FY 2017 Budget Proposal 5 Preparation for impact of property tax reform Continue transfers to the Emergency Fund which was established in FY2015 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 or no service level impacts Continued reduction in the overall property tax rate 6.4% growth in taxable valuation primarily due to revaluations and new development Tax rate reduced by 7.2% since FY12 ($17.842 to $16.551) FY17 rate will be the lowest Iowa City rate since FY2002 01/09/2015 Iowa City FY 2017 Budget Proposal Annual rate review: Parks and Recreation (misc. program and facility rental increases) Stormwater Utility fee increase recommended to fund infrastructure maintenance and a natural areas inventory/management plan Increase of $1.00/ERU per month recommended —from $3.50/ERU per month to $4.50/ERU per month Aggressive Capital Improvement Program (CIP) Flood mitigation Critical infrastructure Resources made available for Strategic Plan priorities More details later in the presentation 01/09/2015 Iowa City FY 2017 Budget Proposal July 1, 2014 (FY 2015) • 95% rollback on commercial, industrial, railroad • Residential and agricultural limited to 3% statewide annual growth 01/09/2015 July 1, 2015 (FY 2016) • 90% rollback on commercial, industrial, railroad • Continues at this rate in perpetuity • FY17 backfill = approx. $1.58 million Residential Rollback Estimated Trends (FY14-24) 62.0% Projected taxable % with 4% limitation 58.0% �e0k!!�\y TKIWA 54.0% 52.0% FY14 limitation 52.8% limitation 52.8% Projected taxable % with 3% limitation FY151 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 F 54.4% 56.5% 56.5% 58.5% 57.9% 59.9% 59.1% 61.0% 59.8% 61.6% 54.4%55.7% 1 55.6% 56.8% 55.7% 1 57.0% 1 55.7% 1 56.9% 1 55.255.7% 55.6% 56.8% 55.7% 57.0% 55.7% 56.9% 55.2%56.3%%% Iowa City FY 2017 Budget Proposal H 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% 01/09/2015 Taxable % of Property "Rollback" 110.00% 100.00°i° - - - - - ---- 90.00 % 80.00% 70.00 60.00% 50.00% 40.00% 30.00% 00 0k 00 ai^' 00 Oa Op o '��O ti0 tiQ ^a ��' •°j ��' �O ti0 ti0 ti0 ti0 ti0 ti0 ti0 —Residential* Commercial —Industrial —Multi -residential *Residential after assessment year 2014 are projected percentages Iowa City FY 2017 Budget Proposal 9 01/09/2015 Iowa City FY 2017 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 XK111ii [1.1111 F71 ZFTV $17.76 $17.75 $16.92 $16.78 $16.65 $16.11 $15.22 $13.53 $12.00 $11.03 $11.03 $10.63 * Projected Iowa City tax rate for FY2017 is $16.55. Iowa City's FY2012 rate was $17.84. 01/09/2015 Iowa City FY 2017 Budget Proposal City North Liberty* Davenport Waterloo Des Moines Dubuque Sioux City Iowa City Ames* West Des Moines Council Bluffs** Cedar Rapids Coralville Water�� $42.53 $51.66 $9.75 $2.00 $105.94 1 $40.40 $44.55 $14.75 $2.49 $102.19 2 $37.60 $47.57 $11.36 $2.75 $99.28 3 $26.34 $38.86 $22.17 $10.95 $98.32 4 $24.35 $36.88 $25.81 $6.38 $93.42 5 $31.45 $34.54 $15.44 $5.25 $86.68 6 $30.17 $36.08 $15.90 $3.50 $85.65 7 $28.18 $31.08 $21.29 $3.45 $84.00 8 $32.37 $33.51 $10.90 $4.25 $81.03 9 $36.60 $19.84 $18.00 $0.00 $74.44 10 $25.69 $23.88 $19.63 $4.90 $74.10 11 $17.80 $26.37 $19.00 $3.00 $66.17 12 *Ames and North Liberty trash collection provided by private contractors **Council Bluffs Sewer Fee Increasing to $22.88 by FY17 01/09/2015 Iowa City FY 2017 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% 01/09/2015 Iowa City FY 2017 Budget Proposal 13 Year Sunset FY15 Actual Citv Rate Effective Year Receipts P Cedar Rapids 1% 2009 2024 $18,670,814 100% Street Repair 60% Property Tax Relief, 40% Capital Davenport 1% 1989 None $15,657,977 Improvements and Equipment 60% Property Tax Relief, 20% Infrastructure Projects, 10% City Sioux City 1% 1987 None $12,613,562 Facilities, 10% EIDx Council Bluffs 1% 1990 None $10,129,041 100% Streets and Sewers Waterloo 1% 1991 2025 $9,555,648 100% Street Repair 50% Property Tax Relief, 20% City Facilities Maintenance, 30% Special Dubuque 1% 1988 None $8,374,760 Assessment Relief 60% Property Tax Relief, 40% Ames 1% 1987 None $7,377,619 Community Betterment * Iowa City's LOST expired in FY2013 and generated approximately $8.8 million annually for fouryears. 01/09/2015 Iowa City FY 2017 Budget Proposal 14 01/09/2015 Iowa City FY 2017 Budget Proposal All Funds Revenue Comparison of FY2016 versus FY2017 Taxes Other City Taxes Licenses & Permits Use of Money & Prop Intergovernmental Charges for Services Misc. Other Financial Sources Total Note: Excludes Transfers 01/09/2015 Iowa City FY 2017 Budget Proposal 1G FY2016 FY2017 Percent Adopted Proposed Change $ 5270337986 $ 5572427334 6.2% $ 378067415 $ 570487914 32.6% $ 272497335 $ 274637182 9.5% $ 270167112 $ 272977691 14.0% $ 3072967422 $ 3277447210 8.1% $ 40, 086, 092 $ 40, 318, 698 0.6% $ 570327647 $ 673277815 25.7% $ 1474037630 $ 1872307427 26.6% $14979247639 $16276737271 8.5% Iowa City FY 2017 Budget Proposal 1G Other Financial Sources 11% M isc. 4% 01/09/2015 Charges for Services 25% Property Taxes 34% I ntergov't 20% JIF Iowa City FY 2017 Budget Proposal Other City Taxes 3% Licenses & Permits 2% Use of Money & Prop 1% Excludes transfers 17 Percent of City Taxable Value 19.2% 1.0% 20.7% i26.6% ' 27.7% i 32.8% turgid in TIF 33.2% 1 43.2% 1 44.8% $40,000 Jan. 1, 2014 valuation year, FY 2015/2016 01/09/2015 Iowa City FY 2017 Budget Proposal 19 Iowa City, 3.34% Tiffin , 2.84%l Solon, 2.18%� Shueyville, 1.74% Lone Tree, 1.35% Swisher, 0.92% Oxford , 0.80% North Liberty, 16.14% Coralville, 70.71% 01/09/2015 Iowa City FY 2017 Budget Proposal 20 Property Taxes 64% Other City Taxes 5% Licenses & Permits 5% Use of Money & Property 2% I ntergov't 7% Miscellaneous 11% Charges for Fees & Services 3% Other Financing Excludes transfers 11NEW sourc3%es 01/09/2015 Iowa City FY 2017 Budget Proposal 21 $6,000 $5,500 $5,000 $4,500 $4,000 $1,000 $500 100% Assessed vs. Taxable Valuations $3,500 y FY10 r- O $3,000 _ $2,500 FY15 FY16 r- $2,000 $3,928 $1,500 $1,000 $500 100% Assessed vs. Taxable Valuations *Taxable valuations include gas & elec utilities and increment value 01/09/2015 Iowa City FY 2017 Budget Proposal 22 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 +100%Assessed $3,928 $4,264 $4,376 $4,450 $4,520 $4,616 $4,668 $4,827 $4,951 $5,352 Change, Assessed 3.2% 8.5% 2.6% 1.7% 1.6% 2.1% 1.1% 3.4% 2.6% 8.1% tTaxable $2,428 $2,567 $2,679 $2,758 $2,848 $2,960 $3,036 $3,137 $3,183 $3,423 Change, Taxable 4.6% 5.7% 4.4% 2.9% 3.3% 3.9% 2.6% 3.3% 1.5% 7.5% Taxable %of Total 61.81% 60.20% 61.22% 61.98% 63.01% 64.13% 65.03% 64.99% 64.29% 63.95% *Taxable valuations include gas & elec utilities and increment value 01/09/2015 Iowa City FY 2017 Budget Proposal 22 Residential 75% . ........ ........ � 7. ........... 49 Multi - Residential 8% Commercial 15% Full Valuation 01/09/2015 Industrial 2% Railroads 0% Utilities wbut Gas & Electric 0% Residential 65% Agricultural 0% Multi - Residential 11% Taxable Valuation Iowa City FY 2017 Budget Proposal Commercial 22% Industrial 2% Railroads Utilities 0 ° wbut Gas & Electric 0% 23 % of Taxable Property Values by Classification 70.00% 60.00% 1 50.00% 40.00% 30.00% 20.00% 10.00% 0.00 FY14 FY15 FY16 FY17 ■ Residential 59.64% 61.66% 64.68% 65.21% ■ Commercial 37.39% 35.37% 32.73% 21.70% ■ Multi -Res 0.00% 0.00% 0.00% 10.70% Commercial Rollback: FY14 none; FY16 95%; FY16 90% FY17 90% Residential Rollback: FY14 52.82%; FY15 54.40%; FY16 55.73% FY17 55.63% Multi -family has been broken out from Commercial for FY17 and taxed at a decreasing rate each year until FY2024 01/09/2015 Iowa City FY 2017 Budget Prcr 24 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ 2012 2013 2014 2015 2016' 2017 - KP roperty 017'■ Property Taxes $49,542,640 $50,416,210 $50,046,477 $51,492,986 $52,033,986 $55,242,334 % Change 3.59% 1.76% -0.73% 2.89% 1.05% 6.17% 'Projected 01/09/2015 Iowa City FY 2017 Budget Proposal 25 Iowa City Property Tax Rate Trend $18.00 $17.00 $16.00 r $15.00 14.00 $13.00 10 $12.00 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17- Iowa City Tax Rate 17.302 17.297 17.717 17.853 17.757 17.842 17.269 16.805 16.705 16.651 16.552 (Percent Change -2.41% -0.03% 1 2.43% 1 0.77% -0.54% 1 0.48% 1-3.21% -2.69% -0.60% -0.32% -0.59% 01/09/2015 Iowa City FY 2017 Budget Proposal 'Proposed 26 • The City of Iowa City tax levy rate is one component of the total property tax rate residents and businesses pay. • The three largest components of the overlapping property tax rate are the City, the School District, and the County. Percent of Overlapping Tax Rate State of City of Iowa* Iowa City 0% 43% Kirkwood Comm. College 3% Johnson County* 18% ICCSD 36% `The State of Iowa has a special levy of $0.0033/$1,000 of taxable value 01/09/2015 Iowa City FY 2017 Budget Proposal 27 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 ■ City of Iowa City ■ State of Iowa ■ Kirkwood Community College ■ Johnson County* ■ Iowa City Community School District 01/09/2015 Iowa City FY 2017 Budget Proposal 28 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 FY 2011 1 FY 2012 1 FY 2013 1 FY 2014 FY 2015 ■Hotel Motel Tax $776,501 $813,896 $871,706 $967,049 $1,057,386 ■ Gas/Electric Excise Tax $819,975 $857,553 $819,662 $780,458 $850,846 ■Utility Franchise Tax $725,478 $826,450 $918,229 $1,031,187 $901,690 01/09/2015 Iowa City FY 2017 Budget Proposal 29 01/09/2015 Iowa City FY 2017 Budget Proposal $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 FY2017 Expenditures by State Budget Category & Percent Change from Previous Year Adopted Budget excludes transfers Public Safety Public Works Health & Culture & Community & General Debt Service Capital Business Social Recreation Economic Government Projects Type Services Development Activities 01/09/2015 Iowa City FY 2017 Budget Proposal 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 31 Personnel Services Supplies Capital Outlay Contingency Debt Service Total Expenditures* *Excludes Transfers Out 01/09/2015 $37,379,754 $9,169,920 $1,486,970 $2,967,679 $311,285 $2,800,000 $54,115,608 $38,928,219 $9,348,949 $1,490,298 $2,738,988 $391,000 $720,000 $53,617,454 Iowa City FY 2017 Budget Proposal C0i[VA. 1.95% 0.22% IONVA 25.61% -74.29% -0.92% 32 Personnel 73% Excludes transfers Contingency 1% Supplies 3% Capital Outlay 5% Other Financial Uses 1% 01/09/2015 Iowa City FY 2017 Budget Proposal 33 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 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Actual Actual Actual Revised Proposed Budget Budget ■ Fire 722,838 961,815 1 1,052,753 1 1,226,921 1 1,289,744 1 1,210,012 1,165,169 ■ Police 962,911 1,251,111 1,344,954 1,688,246 1,668,273 1,590,115 1,539,359 Total 1,685,748 2,212,926 2,397,707 2,915,167 2,958,016 2,800,127 2,704,528 % Change from Prior Year 1 25.10% 31.27% 8.35% 21.58% 1.47% -5.34% -3.41% 01/09/2015 Iowa City FY 2017 Budget Proposal 34 IPERS Total Emalover Contribution Rate: 17.06% Pension Plan 8.93% Social Security 6.20% Medicare 1.45% Long Term Disability 0.48% MFPRSI Total Employer Contribution Rate: 27.37% Pension Plan 25.92% Medicare 1.45% $30.000.00 $25.000.00 $20.000.00 $15.000.00 $10.000.00 $5.000.00 11 01/09/2015 City's Contributions for IPERS and MFPRSI $50,000.00 $75.000.00 $100,000.00 Salary Levels Iowa City FY 2017 Budget Proposal IPERS @ 17.06% ■MFPRSI @ 27.37% 35 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 $228,723 $325,061 $598,265 IPERS $388,857 Total $617,580 Workforce* 19% 81% 0 * Workforce on 1/7/2016 - includes temp staff 01/09/2015 $329,689 $654,749 MFPRSI ■ IPERS $335,959 $934,224 $384,016 $351.502 $735,518 Medical Expenses** Iowa City FY 2017 Budget Proposal * *3 Year average 36 FY2017 Health Insurance premiums are projected to increase 17% compared to FY2016 The estimated dollar impact to the General Fund is over $650,000 The estimated impact across all funds is over $1 million This is a very volatile expense category and the City shoulders the risk associated with this volatility. Thus, it is important to maintain flexibility in this fund to be able to withstand unexpected increases. 01/09/2015 Iowa City FY 2017 Budget Proposal In March of 2015, the State of Iowa increased the fuel excise tax by $0.10 — increasing Road Use Tax revenue to the City late in FY2015 Increased Road Use Tax revenue has helped to provide resources for several projects: Increased the annual pavement rehabilitation program to approximately $1.5 million This project was funded at under $650,00 in FY2014 Between 10-20% of this project funds additional curb ramps Brick street reconstruction on Davenport and Fairchild Streets funded at $1 million Doubled curb ramp project funding two consecutive years Annual complete streets project funding 01/09/2015 Iowa City FY 2017 Budget Proposal 01/09/2015 Iowa City FY 2017 Budget Proposal State of Iowa limitation of no more than 5% of total assessed property value Iowa City projected to be at 1.1 % 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 23.1 % of the total levy Debt restructuring and elimination continues to be a critical component of the strategy to reduce the property tax rate 01/09/2015 Iowa City FY 2017 Budget Proposal 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 P] ■ State of Iowa Debt Limit ■ Iowa City Outstanding GO Debt Debt as a % of Limit Debt as a % of Total Valuation 01/09/2015 FY10 FYI FY12 FY13 FY14 FY15 'FY16 'FY17 'FY18 218,807,526 222,492,980 226,007,105 230,776,387 233,415,950 241,332,359 247,527,890 267,576,008 272,927,52E 75,050,000 80,575,000 75,320,000 61,205,000 67,075,000 61,995,000 58,136,426 58,930,194 61,934,844 34.3% 36.2% 33.3% 26.5% 28.7% 25.7% 23.5% 22.0% 22.7% 1.71% 1.81% 1.67% 1.33% 1.44% 1.28% 1.17% 1.10% 1.13% Iowa City FY 2017 Budget Proposal *Projected W Distribution of Moody's General Obligation Ratings for All US Cities aoo 01/09/2015 Iowa City FY 2017 Budget Proposal 42 700 600 N d G 500 400 Iowa City Q 7 300 200 100 0 Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baal Baa3 0 National 182 263 739 545 502 191 66 45 32 13 % of Total 7.06% 10.20% 28.67% 21.14% 19.47% 7.41% 2.56% 1.75% 1.24% 0.50% 01/09/2015 Iowa City FY 2017 Budget Proposal 42 20 18 16 14 H N Y 12 U w 0 Distribution of Moody's General Obligation Bond Ratings for Cities in Iowa 01/09/2015 Iowa City FY 2017 Budget Proposal 43 d 0 E 8 z Iowa City 6 4 2 0 Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baal Baa3 ■ State 2 6 12 14 18 10 2 0 0 2 % of Total 3.03% 9.09% 18.18% 21.21% 27.27% 15.15% 3.03% 0.00% 0.00% 3.03% 01/09/2015 Iowa City FY 2017 Budget Proposal 43 01/09/2015 Iowa City FY 2017 Budget Proposal Est Fund Restricted, Unassigned % of Exp Fundransfers Budgeted Transfers Balance Committed, Fund & Trans Expenditures Out 6/30/17 Assigned Balance, Out 6/30/2017 Parking 5,625,275 0 3,440,001 628,364 11, 931, 504 5,885,583 6,045,921 148.61% Transit 7,120,613 3,408,584 10,251,640 186,000 5,157,933 863,251 4,294,682 41.15% Wastewater 12,646,708 4,656,246 10,651,641 6,931,246 20,123,276 9,422,517 10,700,759 60.86% ME Water 9,111, 655 2,020,178 8,558,937 3,437,303 10,152, 866 4,247,910 5,904,956 49.22% Refuse 3,173, 900 0 3,142, 730 0 1,163,183 0 1,163,183 37.01% Landfill ul 5, 977, 982 1,094,208 4,505,413 1,665,844 25,155, 345 23, 410, 898 1,744,447 28.27% Airport III 359,500 113,209 372,709 270,800 440,185 100,000 340,185 52.86% Stormwate 1,516,221 0 624,077 615,000 1,282,644 0 1,282,644 103.52% H 8,501,333 0 7,655,761 46,087 7,183, 339 3,012,175 4,171,164 54.16% 01/09/2015 Iowa City FY 2017 Budget Proposal 45 01/09/2015 Estimated Property Tax on $100.000 Residential Valuation (Iowa City portion) FY $96 6 II II F 07 Assessed Valuation $100,000 $100,000 Taxable Valuation $55,734 $55,626 City Levy $16.651 $16.552 Property Taxes $928 $921 Difference ($7) Iowa City FY 2017 Budget Proposal Iowa City Property Taxes Paid on a $500,000 Commercial Property $9,500 $9,000 $8,500 $7,500 $7,000 $6,500 ■ City Property Taxes 01/09/2015 A projected reduction of $1,473 since 2012 FY2012 FY2013 FY2014 FY2015 $8,921 $8,634 $8,403 $7,935 Iowa City FY 2017 Budget Proposal FY2016 FY2017 $7,493 $7,448 M Proposed Rate Increase: Stormwater Utility: $1.00 increase (per ERU per month) from $3.50 to $4.50 Residential properties will see an increase of $12 per year The fee for non-residential properties is based on the actual impervious area and will vary for each property. An impervious area is a surface that does not allow water to soak into the ground. Driveways, rooftops and parking lots are considered impervious areas. The fee increase is expected to generate $327,710 in additional revenue Significant capital expenditures and a budgeted wetland management plan necessitate additional revenue 01/09/2015 Iowa City FY 2017 Budget Proposal 48 Annual Financial Impact to Residential Households $2,000 $1,500 $1,000 $500 $0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 ■ Property Taxes $866 $876 $888 $909 $928 $921 ■ Stormwater $30 $36 $42 $42 $42 $54 ■ Refuse $186 $186 $186 $191 $191 $191 ■ Sewer - 800 cubic feet $433 $433 $433 $433 $433 $433 ■ Water-- 800 cubic feet $328 $328 $328 $344 $362 $362 Total $1,843 $1,859 $1,877 $1,919 $1,955 $1,960 Percent Change 2.2% 0.9% 0.9% 2.3% 1.9% 0.3% Based on a residential customer with $100,000 property valuation. Total estimated financial impact is $10 more per year ($0.83 per month) in FY 2017 compared to FY 2016 01/09/2015 Iowa City FY 2017 Budget Proposal 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0% R• 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 Building fiscal integrity to ensure maintenance of Moody's Aaa bond rating 01/09/2015 Iowa City FY 2017 Budget Proposal Sustainability Natural area management plan and inventory Intern for enhanced data collection and tracking Facilitation expenses for climate mitigation plan Edible landscape at Robert A. Lee Rec Center SNAP accepted at Farmer's Market Multi -family and single stream recycling; compost offerings Social Justice New full-time Community Outreach position in the Police Department Endowment of the Iowa City Community Fund for social service funding 01/09/2015 Iowa City FY 2017 Budget Proposal 51 Transportation Annual Complete Streets improvements funding Bike Master Plan Additional bus shelters and bike facilities Accessibility Parks ADA improvement line Doubled curb ramp CIP funding for second straight year Additional pavement rehab will increase curb ramp replacements Healthy Neighborhoods Continue neighborhood park improvements: Mercer, Highland, Pheasant Hill, Fairmeadows Increased hours for Historic Preservation staff Four new homes through the UniverCity program Parks Master Plan update Davenport and Fairchild brick street project 01/09/2015 Iowa City FY 2017 Budget Proposal 52 Continued emphasis on flood mitigation, critical infrastructure, and Strategic Plan initiatives: Flood mitigation Gateway Project Riverfront Crossings Park/wetland Critical infrastructure 1St Avenue grade separation Washington Street reconstruction American Legion Road — Scott Blvd. to Taft Ave. Mormon Trek/Benton intersection and Road Diet 01/09/2015 Iowa City FY 2017 Budget Proposal University Children's Hospital City Hancher Auditorium School of Music Two new dorms Art Museum and Art Building West College of Engineering Kinnick North Endzone Three UIHC Clinics Phase 11 of Aspire Gateway, 1 sl Ave. Grade Separation, Washington St., Sabin parking structure, Private Sector Riverside Dr. apartments, Kinseth Hotel, Court/Linn, College/Gilbert, Hodge Riverfront Crossing development, Churchill subdivision, Palisades development School District Planned prior to FY17: Lucas, Longfellow, City High renovations; new Hoover Riverfront Crossings Park construction 01/09/2015 Iowa City FY 2017 Budget Proposal 54 Federal Tightening revenue sources impacting CDBG & HOME, Housing Authority, Transit, Airport and Capital programs State of Iowa Agriculture land price bubble impact on rollback/taxable values c Volatile public safety pension expenses o Uncertainty of state backfill payments 01/09/2015 Iowa City FY 2017 Budget Proposal Utility Franchise Tax Cities allowed up to a 5% fee on select utilities Iowa City's 1 % tax will generate an estimated $902,000 in FY 2017 Approximately $609,000 for operations (Fire Station #4 and ROW maintenance) Approximately $293,000 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 01/09/2015 Iowa City FY 2017 Budget Proposal Local Option Sales Tax Flood -related LOST sunset 6/30/13 — generated approximately $9 million/year November 2014 election 01/09/2015 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) City Yes No Metro block results: 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 Iowa City FY 2017 Budget Proposal 57 01/09/2015 Iowa City FY 2017 Budget Proposal