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Home My WebLink AboutFY 18 PresentationJanuary 7, 2017 LM I January 7: Operating Budget Review January 10: Capital Improvement Plan Review February 21: Setting of a Public Hearing March 7: Public Hearing/Adoption of Budget March 15: Certification with County Auditor Iowa City FY 2018 Budget Proposal Areas to Focus: Transmittal Letter (Executive Summary) Fund Structure and Description Financial and Fiscal Policies Long Range Financial Planning General Fund Summary Economic Trends* *2016 numbers will be added in the final budget Pages 11-28 Pages 65-70 Pages 79-85 Pages 86-91 Pages 111-121 Pages 652-658 Iowa City FY 2018 Budget Proposal 3 Major funds Budgetary Funds General special Debt Permanent Enterprise Capital Fund Revenue Funds Sernee Funds Funds Projects Fund Fund Community Debt Service PerpetualCare Capital General (10") Development Block (50") (60071 Parking (710') Protects Grant (2100) HOME Grant (2110) Transit (715') Road Use Tax (2200) Wastewater Treatment (720') Other Shared Water (730') Revenues(2300) Energy Efficiency& Refuse Collection Conservation Block (7x00) Grant 23101 UniverCity (2315) Landfill (750') Metro Planning Organization of Johnson County Airport (7600) 2350 Employee Benefits Stormwater (2400) Management 7700 Affordable Housing Cable Television Protect Green (9102) (2500) (78") Peninsula Apartments Public Housing (2510) Authority (79") Tax Increment Financing 26" Self -Supporting Municipal Improvement District 2820 Provide resources to achieve Strategic Plan goals 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 Iowa City FY 2018 Budget Proposal 5 Current: Strong Fiscal Position Robust growth building tax base and offsetting tax reform while producing strong one-time revenues Healthy reserve levels across our operation Continued ability to reduce tax rate through the debt service levy Strong position validated by Moody 7s Bond Rating Future Concern: Sustaining our Strong Fiscal Position Multi -residential base continues to erode Agriculture prices point toward a declining rollback figure Backfill from State of Iowa continues to be vulnerable Volatile expense items (e.g. healthcare, pensions) Likely not going to sustain level of growth from past few years Iowa City FY 2018 Budget Proposal July 1, 2017 (FY 2018) Multi -residential property class is broken out from Commercial and is taxed at a declining rate — 82.50% of value will be taxed in FY18 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 FY18 FY19 FY20 FY21 FY22 FY23 86.25% 82.50% 78.75% 75.00% 71.25% 67.50% 63.75% Taxable % of Property "Rollback" 110.00% 100.00% - 90.00% f so.00^i0 70.00% so.00^io 50.00% 40.00% 30.00% Q� Qy e Qy F{ Qe F{ Qe —Residential* Commercial Industrial —Multi -residential *Residential after assessment year 2014 are projected percentages Iowa City FY 2018 Budget Proposal 7 90 80 70 60 50 40 30 20 10 0 Rollback by Assessment Year 00 O N 1ZT (0 00 O N 1ZT (0 00 O N 1ZT (0 00 O N 1ZT (0 1` 00 00 00 00 00 0) 0) 0) 0) 0) O O O O O r1 r -I r-1 r-1 m m m m m m m m m 0) 0) 0 0 0 0 0 0 0 0 0 r1 r -I r-1 r-1 r-1 r-1 r-1 7-1 7-1 7-1 7-1 N N N N N N N N N Iowa City FY 2018 Budget Proposal —Rollback 8 State backfill budget for FY2018: General $758,037 Risk $27,351 Library $25,268 Transit $88,906 Employee Benefits $294,301 SSMID $28,823 Debt Service $358.354 Total $1,581,040 Equivalents $.46 added to our property tax levy 15 police officer or fire firefighter positions All three pools, animal shelter and forestry divisions Iowa City FY 2018 Budget Proposal 9 Public Safety Pension Contributions Annual expenditure fluctuations ranging from -5.5% to over 30% in the past several years FY18 budgeted expenditures are a 109% increase over FY10 Public Safety Medical / Workers Compensation Costs Annual costs have increased nearly $500k, or 140% since FY14 Health Insurance 13% increase from FY16 to FY17. 7.5% increase budgeted in FY18 Iowa City FY 2018 Budget Proposal 10 Building Permit Construction Value (calendar year) 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 O 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FY08 FY09 Iowa City FY 2018 Budget Proposal Building Permit Revenue (fiscal year) FY10 FY 11 FYI FYI FY 14 FY 15 FY 16 FY17YTD 11 Iowa City FY 2018 Budget Proposal All Funds Revenue Comparison of FY2017 versus FY2018 Percent FY2017 FY2018 Change Property Taxes $ 5573307224 $ 5675177353 2.1% Other City Taxes $ 570507336 $ 570547307 0.1% Licenses & Permits $ 274637182 $ 275617660 4.0% Use of Money & Prop $ 272977691 $ 274257343 5.6% Intergovernmental $ 3275817046 $ 2972787352 -10.1% Charges for Services $ 4073597768 $ 4172637278 2.2% Misc. $ 674227129 $ 674437252 0.3% Other Financial Sources $ 1876157427 $ 1772127634 -7.5% Total $16371197803 $16077567179 -1.4% Note: Excludes Transfers Iowa City FY 2018 Budget Proposal 1s Other Financial Sources 11% M isc. 4% Property Taxes 35% Charges f Service: 26% Infarnnv'f Iowa City FY 2018 Budget Proposal Other City Taxes 3% Licenses & Permits 2% Use of Money & Prop 1% Excludes transfers 14 Excludes transfers Other City Taxes 5% Licenses & Permits ilA 5% Iowa City FY 2018 Budget Proposal Use of Money & Property 1% )vernmental 7% Charges for Fees & Services 3% scellaneous 12% Other Financing Sources 2% 15 W % of Taxable Property Values by Classification 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% FY2014 FY2015 FY2016 FY2017 FY2018' ■ Residential 59.64% 61.66% 64.68% 65.18% 66.63% ■ Commercial 37.39% 35.37% 32.73% 21.78% 20.80% ■ Multi -Res 0.00% 0.00% 0.00% 10.69% 10.11% Commercial Rollback: FY14 none FY16 95% FY16 90% FY17 90% FY18 90% Residential Rollback: FY14 52.82% FY16 54.40% FY16 55.73% FY17 55.63% FY18 56.94% Multi -Res Rollback: FY14 N/A FY16 95% FY16 90% FY17 86.25% FY18 82.50% Iowa City FY 2018 Budget Proposal 16 $60,000,000 'Projected Iowa City FY 2018 Budget Proposal 17 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 FY02 FY03 I FY04 I FY05 I FY06 I FY07 I FY08 I FY09 FY10 FYll FY12 FY13 FY14 FY15 FY16 FY17 FY18• Iowa City Tax Rate 14.85 16.813 1 17.596 1 17.314 1 17.729 1 17.302 1 17.297 1 17.717 17.853 17.757 17.842 17.269 16.805 16.705 16.651 16.583 16.333 Percent Change 0.62% 113.22% 1 4.66% 1 -1.60% 1 2.40% 1 -2.41% 1 -0.03% 1 2.43% 0.77% -0.54% 0.48% -3.21% -2.69% -0.60% 1 -0.32% -0.41% -1.51% Iowa City FY 2018 Budget Proposal 'Proposed 18 • 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 3% Johnson County 18% ICCSD 36% `The State of Iowa has a special levy of $0.0033/$1,000 of taxable value Iowa City FY 2018 Budget Proposal 19 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 45.00% 44.50% 44.00% 43.50% 43.00% 42.50% 42.00% 41.50% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 ICCSD Johnson County' � Kirkwood State of Iowa � City of Iowa City Iowa City Percentage of Total Iowa City FY 2018 Budget Proposal 20 $1,200,000 $1,000,000 $600,000 $400,000 $200,000 $0 FY 2012 FY 2013 FY 2014 FY 2015 ■ Hotel Motel Tax 1 $813,896 1 $871,706 1 $967,049 1 $1,057,386 $1,078,762 ■ Gas/Electric Excise Tax $857,553 1 $819,662 1 $780,458 1 $850,846 $764,260 ■ Utility Franchise Tax $826,450 1 $918,229 1 $1,031,187 $901,690 $874,235 Iowa City FY 2018 Budget Proposal 21 Iowa City FY 2018 Budget Proposal City Council Bluffs Waterloo Des Moines Davenport Iowa City* Sioux City Cedar Rapids Coralville West Des Moines Dubuque North Liberty Ames $17.75 $17.60 $16.92 $16.78 $16.58 $16.07 $15.22 $13.53 $12.00 $11.17 $11.03 $10.37 $17.85 $18.53 $16.58 $15.53 $17.84 $16.66 $15.22 $13.53 $12.05 $10.45 $11.03 $10.84 % Change FY12-FY17 (0.56%) (5.02%) 2.05% 8.05% (7.06%) (3.54%) 0.00% 0.00% (0.41%) 6.89% 0.00% (4.34%) * Proposed Iowa City tax rate for FY2018 is $16.33. Iowa City's FY2012 rate was $17.84. Iowa City FY 2018 Budget Proposal City North Liberty Davenport West Des Moines Ames Coralville Iowa City Council Bluffs Cedar Rapids Waterloo Dubuque Sioux City Des Moines Franchise Fees Rate Cove Cove WHO Kra 3% 5% 5% 5% Iowa City FY 2018 Budget Proposal 24 Year Citv Rate Effective Cedar Rapids 1% 2009 Davenport 1% 1989 Sioux City 1% 1987 Council Bluffs 1% 1990 Waterloo 1% 1991 Dubuque 1% 1988 Ames 1% 1987 FY16 Sunset Estimated Year Receipts P 2024 $19,329,975 100% Street Repair 60% Property Tax Relief, 40% Capital None $15,643,683 Improvements and Equipment 60% Property Tax Relief, 20% Infrastructure Projects, 10% City None $13,277,530 Facilities, 10% EIDx None $10,664,841 100% Streets and Sewers 2025 $9,466,769 100% Street Repair 50% Property Tax Relief, 20% City Facilities Maintenance, 30% Special None $8,644,098 Assessment Relief 60% Property Tax Relief, 40% None $7,495,785 Community Betterment * Iowa City's LOST expired in FY2013 and generated approximately $8.8 million annually for fouryears. Iowa City FY 2018 Budget Proposal 25 Iowa City FY 2018 Budget Proposal Iowa City FY 2018 Budget Proposal ;es Contingency 1% Supplies 3% Capital Outlay 4% Other Financial Uses 1% Personnel 3971147449 4076207033 3.71% Services 977207849 1071257386 4.00% Supplies 174907258 177037693 12.53% Capital Outlay 279687988 272797115 -30.27% Contingency 3917000 5457000 28.26% Debt Service 9007000 5107000 -76.47% Total Expenditures* 5475857544 5577837227 2.15% *Excludes Transfers Out Iowa City FY 2018 Budget Proposal 28 3,500,000 3,000,000 2,500,000 2.000.000 1.500,000 1,000,000 500,000 0 ■ Fire ■ Police Total % Change from Prior Year City of Iowa City MFPRSI Contributions FY2011 FY2012 I FY2013 FY2014 FY2015 I FY2016 FY2017- FY2018- 722,838 961,815 1,052,753 1,226,921 1,289,744 1,208,773 1,165,169 1,190,906 962,911 1,251,111 1,344,954 1,688,246 1,668,273 1,585,142 1,539,359 1,623,589 1,685,748 2,212,926 2,397,707 2,915,167 2,958,016 2,793,915 2,704,528 2,814,495 25.10% 31.27% 8.35% 21.58% 1.47% -5.55% -3.20% 4.07% Iowa City FY 2018 Budget Proposal 29 Personnel insurance benefits will be maintained at similar levels to FY17. To supplement increases in overall insurance costs, slight incremental increases to premiums and out-of-pocket expenses will be paid by bargaining and non -bargaining employees. Health Insurance Premiums increased by 12.83% in FY 17 Projected to increase 7.5% in FY 18 Annual public safety medical benefit costs have increased over 140% 498,262) since FY 14 due to 2009 State legislation section 411 added a presumption of responsibility of infectious disease and/or cancer for police and fire personnel. Public safety medical benefit cost increased 1.03% between FY17 - FY18 ($24,842) Current reserve for this purpose is recommended at 30%. City current cash balance medical fund reserve is 21.41% Iowa City FY 2018 Budget Proposal 30 Iowa City FY 2018 Budget Proposal State of Iowa limitation of no more than 5% of total assessed property value Iowa City projected to be at 1.24% 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 21.9% of the total levy Debt restructuring and elimination continues to be a critical component of the strategy to reduce the property tax rate Iowa City FY 2018 Budget Proposal 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 D FY10 FY11 FY12 FY13 FY14 FY15 FY16 *FY17 *FY18 *FY19 ■ State of Iowa Debt Limit 218,807,526 222,492,980 226,007,105 230,776,387 233,415,950 241,332,359 247,527,890 267,511,393 274,343,870 279,830,748 ■ Iowa City Outstanding GO Debt 75,050,000 80,575,000 75,320,000 61,205,000 67,075,000 61,995,000 57,875,000 66,997,095 67,901,101 69,916,901 Debt as a % ?!Limit 34.3% 36.2% 33.3% 26.5% 28.7% 25.7% 23.4% 25.0% 24.8% 25.0% Debt as a % of Total Valuation 1.71 % 1.81 % 1.67% 1 1.33% 1.44% 1.28% 1.17% 1.25% 1 1.24% 1.25% *Projected Iowa City FY 2018 Budget Proposal 33 Distribution of Moody's General Obligation Ratings for All US Cities 900 800 700 N wu U1 w. 500 O L Q 400 Iowa City Z 300 200 100 0 Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baal Baa3 National 200 278 792 569 519 216 80 43 27 15 of Total 7.30% 10.15% 28.92% 20.77% 18.95% 7.89% 2.92% 1.57% 0.99% 0.55% Iowa City FY 2018 Budget Proposal 34 Distribution of Moody's General Obligation Bond Ratings for Cities in Iowa 20 18 14 - 14 owa 4 2 0 Aaa Aal Aa2 Aa3 Al A2 A3 Baal Baa2 Baa3 ■ State 2 7 11 12 19 13 2 0 1 1 °k of Total 2.94% 10.29% 16.18% 17.65% 27.94% 19.12% 2.94% 0.00% 1.47% 1.47% Iowa City FY 2018 Budget Proposal 35 Iowa City FY 2018 Budget Proposal Wastewater Water Refuse Landfill Airport 12,589,340 4,368,762 10,601,444 6,703,762 18,714,634 8,989,859 9,724,775 57.35% 9,268,096 1,937,940 3,411,689 - ' 6,234,063 1,123,436 359,500 109.687 Stormwater 1,483,550 �I Housing 8,769,397 8,465,882 3,380,515 3,427,207 500,000 4,902,903 3,488,126 369,187 179,830 11,211,680 743,762 4,157,504 24,839,439 23,133,818 274,642 100,000 518,983 1,040,000 918,984 8,201,363 46,779 7,667,451 Iowa City FY 2018 Budget Proposal 2,945,146 7,054,176 62.95% 743,762 21.80% 1,705,621 23.18% 174,642 37.22% 918,984 61.94% 4,722,305 53.85% 37 Est Fund Restricted, Unassigned % of Exp FE Fin Budgeted Transfers Balance Committed, Fund & Trans Expenditures Out 6/30/18 Assigned Balance, Out 6/30/2018 P 5,922,530 1,114,695 6,941,622 1,870,005 10,178,479 3,500,000 6,678,479 94.90% Transit I 4,193,204 3,520,076 7,202,013 151,000 5,583,091 917,482 4,665,609 60.49% Wastewater Water Refuse Landfill Airport 12,589,340 4,368,762 10,601,444 6,703,762 18,714,634 8,989,859 9,724,775 57.35% 9,268,096 1,937,940 3,411,689 - ' 6,234,063 1,123,436 359,500 109.687 Stormwater 1,483,550 �I Housing 8,769,397 8,465,882 3,380,515 3,427,207 500,000 4,902,903 3,488,126 369,187 179,830 11,211,680 743,762 4,157,504 24,839,439 23,133,818 274,642 100,000 518,983 1,040,000 918,984 8,201,363 46,779 7,667,451 Iowa City FY 2018 Budget Proposal 2,945,146 7,054,176 62.95% 743,762 21.80% 1,705,621 23.18% 174,642 37.22% 918,984 61.94% 4,722,305 53.85% 37 City Water Sewer Waste Storm Total North Liberty* $44.73 $54.30 $10.35 $2.00 Davenport $44.12 $45.21 $15.91 $2.57 Des Moines $27.21 $43.94 $11.00 $11.50 Dubuque $27.64 $38.00 $14.77 $6.81 Iowa City $30.17 $36.08 $15.60 $4.50 West Des Moines $32.44 $37.50 $10.55 $4.25 Ames* $28.18 $32.63 $19.22 $3.45 Sioux City $31.45 $34.55 $15.30 $0.83 Cedar Rapids $27.11 $24.25 $21.02 $5.18 Coralville $19.60 $28.93 $20.00 $3.00 Council Bluffs $28.75 $22.88 $18.00 $0.00 Waterloo $17.15 $25.75 $10.50 $2.75 *Ames and North Liberty trash collection provided by private contractors **Average rate is $84.33/difference of $2.32 Iowa City FY 2018 Budget Proposal $111.38 $107.81 $93.65 $87.22 $86.65** $84.74 $83.48 $82.13 $77.56 $71.53 $69.63 $56.15 Rank 1 2 3 4 5 6 7 8 9 10 11 12 38 No fee changes for water, sewer, storm water, or transit Refuse & Recycling - effective July 17 2017 $0.20 increase to monthly rate for solid waste $1.00 increase to monthly rate for recycling $1.25 increase to $2.50 per bag for heavy -use solid waste Proposed $2.00/monthly fee to replace annual $25 yard waste & $1.25/yard waste bag fees - effective Jan 1, 2018 Minor adjustments ($1-2) in per item fees for electronics recycling Parking - $5.00 increase to monthly permit fee. (Ivo change to meter or violation rate structure) Parks and Recreation - effective Spring 2017 All programs, lessons, room and field rentals, dog park passes and cemetery fees increased by 3% Increase of 3% or less to various local food initiatives (garden plots, farmer's market stalls) Iowa City FY 2018 Budget Proposal 39 Estimated Property Tax on $100.000 Residential Valuation (Iowa City portion) F07 II II F$ $92$930 Assessed Valuation $100,000 $100,000 Taxable Valuation $55,626 $56,939 City Levy $16.583 $16.333 Property Taxes $922 $930 Difference $8 Iowa City FY 2018 Budget Proposal Iowa City Property Taxes Paid on a $500,000 Commercial Property $9,000 A projected reduction of $1,571 since 2012 $8,500 $7,500 $7,000 $6,500 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 ■City Property Taxes $8,921 $8,634 $8,403 $7,935 $7,493 $7,462 $7,350 Iowa City FY 2018 Budget Proposal W $2,000 $1,500 $1,000 $500 yV FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 ■ Property Taxes $876 $888 $909 $928 $922 $930 ■ Stormwater $36 $42 $42 $42 $54 $54 ■ Refuse' $186 $186 $191 $191 $191 $205 ■ Sewer - 800 cubic feet $433 $433 $433 $433 $433 $433 ■ Water-- 800 cubic feet $328 $328 $344 $362 $362 $362 Total $1,859 $1,877 $1,919 $1,955 $1,962 $1,984 Percent Change 0.9% 0.9% 2.3% 1.9% 0.3% 1.1% Based on a residential customer with $100,000 property valuation. FY18 figures do not reflect yard waste fee structure changes Iowa City FY 2018 Budget Proposal 42 Significant development and reduction in personnel expenses resulted in unpredicted FY16 surplus. Places City in strong position to start FY 18 and allows us to complete significant capital project that has not been attainable in recent years. Allow for a $2.5 million transfer to Public Works Phase I $500k to Emergency Reserve Fund Remainder of surplus remains in unreserved fund balance, projected to be about 34% of FY 18 revenues and transfers in. Preparation for impact of property tax reform Continue transfer ($500,000 in FY 18) 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 Iowa City FY 2018 Budget Proposal 43 Continued reduction in the overall property tax rate 3.57% growth in taxable valuation primarily due to new development Tax rate reduced by 8.5% since FY12 ($17.842 to $16.333) FY18 rate will be the lowest Iowa City rate since FY2002 Valuation growth was strong in a non -revaluation year Iowa City FY 2018 Budget Proposal Taxable Valuation History $4,000 $3,500------- $3,000 Oa $2,500 0 $2,000 c $1,500 $1,000 $500 $0 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2018 FY2016 FY2017 prelim. ■In Millions $2,567 $2,679 $2,758 $2,848 $2,960 $3,036 $3,137 $3,183 $3,421 $3,544 %Change 5.72% 1 4.37% 1 2.95% 1 3.27% 1 3.93% 1 2.56% 1 3.32% 1 1.46% 1 7.50% 3.57% Iowa City FY 2018 Budget Proposal Communications Eliminate Communications Assistant (1.0) & 7.50 6.00 Clerical Assistant - Cable TV (0.50) Finance Eliminate Budget Management Analyst (1.0) Information Technology Solutions Architect Services Neighborhood Reclassify hourly Historic Preservation Development Services Planner to permanent 0.50 FTE Transportation & Fund Associate Director of Resource Resource Management Management (1.0) Public Works- Streets Fund Maintenance Worker 1 (2.0) 4.15 3.15 �011ftl 111111111111111[006 10.80 11.30 3.00 4.00 30.00 32.00 TOTAL ALL Department FTE 599.89 601.89 Strong Local Economy Increased funding for local food programs ($30,000) EBT/SNAP program at the Farmer's Market New community gardens and beginning gardener program Micro -loan resources and discretionary funding for small business incentives ($50,000) Urban Core New historic preservation grant program will facilitate residential properties located in historic districts ($40,000) Two TIF grants aimed at restoration of Englert Theatre and preserve historic elements of Film Scene operation ($1 million) Contribution of $650,000 of General Fund dollars to City's affordable housing fund Sustainability Increased funding for carbon emission reduction projects ($150,000) Gold bike -friendly certification, complete streets fund ($150,000) and bike master plan implementation Curbside composting and single -stream recycling Iowa City FY 2018 Budget Proposal 46 Healthy Neighborhoods Traffic calming initiatives in Northside neighborhood ($50,000) Form -based code project phase two ($150,000) PIN grants and Public Art program Natural area management capabilities, street tree planting and ADA improvements Social Justice Temporary winter homeless shelter Racial equity grant program and police traffic stop analysis Summer Fun pilot program included in standard Parks and Recreation operations Recreation Supervisor role will expand support to underserved populations Iowa City FY 2018 Budget Proposal 47 Utilities: Expect to see water rate increase in FY19 to assist with continued capital investments in the distribution system One-time building permit revenue will drop off and reduce annual operating surplus Backfill may come into play and tighten budgets considerably in future years Uncertainty at the federal level may impact infrastructure funding and CBBG, HOME, Housing Authority, Airport, and/or Transit operations Iowa City FY 2018 Budget Proposal 48 Iowa City FY 2018 Budget Proposal