HomeMy WebLinkAboutAppendix I - FY22 Budget - Transmittal Letter and Transit Fund To the Honorable Mayor and City Council Members,
It is my pleasure to submit Iowa City's operating and capital budget for Fiscal Year 2022. Although
Iowa State Code requires formal adoption of an annual budget, a three-year financial plan (FY
2021-2023) and five-year Capital Improvement Program (2021-2025) are also included for
planning purposes. The budget is one of the most important documents the City prepares
because it identifies the services to be provided and the mechanisms that finance those services.
Although the COVID-19 pandemic presented challenges for seeking public input through the
traditional avenues, this budget was developed based on feedback received throughout the year
from regular planning and engagement efforts, City Council listening posts, the recommendations
of City boards and commissions, and direct input to City Council and staff from stakeholders and
residents. This budget incorporates diverse priorities while adhering to financial best practices
and planning for long-term community needs.
This document aims to provide resources to further the City Council’s Strategic Plan priorities,
implement master plans adopted by Council, and continue Iowa City's tradition of providing a
balanced budget while strengthening core municipal services that our residents value. The budget
contains prudent contingency line items and reserve levels which enable the City to maintain
service levels in the event of unexpected expenditures or revenue shortfalls -- as was the case
with the COVID-19 pandemic which arose during Fiscal Year 2020 and continues to impact the
community. Any future modifications of this budget will be fully disclosed to the City Council and
general public through formal City Council actions at public meetings, in accordance with State of
Iowa law.
Throughout the budget compilation process, staff used the City Council’s Strategic Plan to help
prioritize expenditure decisions. This approach was balanced with recognition that the full financial
impacts of the COVID-19 pandemic are difficult to forecast but will likely continue into Fiscal Year
2022 and beyond. While we remain optimistic that revenue levels will slowly stabilize moving
forward, the adopted budget remains largely status quo due to the broader fiscal uncertainties.
Given the financial challenges many households and businesses are navigating, this budget
approves no new rate increases and a modest reduction to the City’s property tax rate.
Accordingly, this budget limits the addition of new staff. The adopted Fiscal Year 2021 budget
marked the largest investment in new staff in many years, though many of these positions were
frozen as a result of COVID-19 related budget cuts. Fiscal Year 2022 resources will be directed
towards filling some of these critical vacancies as the City works towards meeting Fiscal Year
2021 authorized staffing levels. This budget includes a modest addition of 3.00 full-time equivalent
(FTE) positions, which includes two position upgrades (+0.25 FTE Landfill Scalehouse Operator
and +0.25 FTE Buyer I in the Equipment Division) and the addition of a 1.00 FTE full-time public
safety communications specialist in the City Manager’s Office, a 1.00 FTE full-time civilian
supervisor, and a .50 FTE half-time civilian community outreach assistant that will focus on the
immigrant and refugee population, to support the City Council’s police restructuring plan.
Overall, due in part to the City Council’s prudent budgeting over the last decade, Iowa City has
been largely prepared to respond to the pandemic’s financial impacts. Despite no new revenue
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sources and a conservative outlook, this budget still manages to accomplish significant
investments in City Council’s strategic priorities. This budget demonstrates a continued
commitment to aggressive climate action. Through the emergency property tax levy
(approximately $1 million) and departmental dollars, significant progress was made on the City’s
Climate Action Plan during Fiscal Year 2021, including expanding the Climate Action & Outreach
office, launching the Root for Trees program, the first annual Climate Fest, completing the
Wastewater Treatment Plant and Landfill efficiency and methane study, launching new grant
programs for continued energy efficiency improvements in private buildings and homes, and other
year-round public education efforts. The Fiscal Year 2022 budget builds upon this climate action
momentum to expand these initiatives and continue to invest in City LED lighting improvements
and HVAC upgrades, solar energy, the Green Iowa AmeriCorps Program, Community Climate
Action Grants, public engagement, and other opportunities to reduce climate emissions.
Additionally, this budget dedicates resources to support the City Council’s preliminary plan to
restructure the Police Department and invest in prevention, diversion, and co-response efforts
with non-profit community partners, increases the annual Aid to Agencies allocation, raises the
City’s minimum wage for temporary employees to $15.00 per hour, and invests in infrastructure
improvements and a strong capital improvement program.
Investment in Strategic Planning, Master Plans and Core Services
The City Council’s Strategic Plan includes seven goals for a more inclusive, just and sustainable
Iowa City by prioritizing the physical, mental, and economic well-being of all residents:
• Advance Social Justice, Racial Equity, and Human Rights
• Demonstrate Leadership in Climate Action
• Strengthen Community Engagement and Intergovernmental Relations
• Invest in Public Infrastructure, Facilities, and Fiscal Reserves
• Foster Healthy Neighborhoods and Affordable Housing Throughout the City
• Enhance Community Mobility for All Residents
• Promote an Inclusive and Resilient Economy Throughout the City
Significant resources are devoted to all Strategic Plan priorities, including the aforementioned
climate action and adaptation projects, affordable housing, social justice and racial equity,
complete streets, and healthy neighborhoods. Additionally, financial resources are provided to
aggressively implement recently adopted plans that were crafted after robust public input efforts,
including the Bicycle Master Plan, Parks Master Plan, and Climate Action and Adaptation Plan,
alongside a working update to the Affordable Housing Action Plan and the new working plan to
accelerate community policing. Finally, significant resources have been provided to bolster core
service levels in critical areas such as community health and safety, roadways, and utility
infrastructure.
Substantial resources are once again devoted to affordable housing. $1 million is earmarked for
the affordable housing fund, bringing the total for this line item to $4.4 million over five years. This
is in addition to several other City housing rehabilitation grant and loan programs. The City has
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also successfully created supplemental affordable housing revenue streams through fees and
Tax Increment Financing that will bolster our efforts in coming years.
In recent years, the City Council has demonstrated a commitment to strengthening human and
social services in our community, including a notable expansion of the annual Aid to Agencies
program. In Fiscal Year 2020, the City Council doubled (+54%) the Aid to Agencies budget and
again increased the amount in Fiscal Year 2021. This budget includes another 3% increase in
local funds (+$20,250) to bring the total funding (federal and local) for the Aid to Agencies program
to $725,250 in Fiscal Year 2022. This increase was included with the expectation that it will
increase annually to keep pace with inflation and the City’s commitment to social justice and racial
equity.
Examples of other social justice initiatives found in this budget include:
• An increase in the City’s minimum wage to $15.00 effective July 1, 2021 for hourly staff,
which translates to an additional cost of approximately $416,000 in Fiscal Year 2022.
• Continued funding for the Social Justice and Racial Equity grant program and community
partnerships.
• Accessibility improvements, including physical improvements to sidewalks and City parks
and facilities, programming improvements, and funding for the annual community ADA
Celebration.
• Investment in accelerating the City’s community policing efforts, including a co-response
model and prevention, diversion, and outreach initiatives and partnerships.
• Continued expansion of translated City documents and operational resources for
enhanced cultural outreach programming.
• Funds to complete fair housing testing to ensure compliance with federal, state, and local
discrimination laws.
• Implicit bias training for City staff, boards and commissions, local landlords, and the
business community.
• Expanded arts, culture, and recreation opportunities related to social justice and racial
equity, including a pilot Rec & Ride transportation program and a global multi-cultural
celebration at Riverfront Crossing Park.
Master Plans
In addition to the Strategic Plan, the City Council’s adopted Master Plans also play an important
role in the budgeting process. The Parks Master Plan, Natural Areas Plan, Bike Master Plan, and
Climate Action and Adaptation Plan all receive significant funding for implementation in this
budget and particularly in the five-year Capital Improvement Plan. Many of the City’s
sustainability efforts are incorporated into each of these plans. Projects such as tree plantings,
urban forest management (including the chemical treatment of healthy Ash trees), on street bike
facilities, multi-modal roadway improvements, local foods efforts and community gardens, and
waste reduction strategies all continue to be funded, if not expanded.
Over $23 million in the five-year capital improvement plan is budgeted for parks and recreation
projects, many implementing park and accessibility improvements recommended in the Master
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Plan. The Fiscal Year 2022 budget includes funding for improvements at Chadek Green Park,
Court Hill Park shelter and playground, and an off-road bike trail.
Bike Master Plan projects will continue in 2022. Projects completed in 2020 include bike lanes on
Burlington Street, Dodge Street, and the McCollister Boulevard extension. Ongoing 2020 projects
include bike lanes on Muscatine and Southgate and a lane conversion with bike lanes added on
Keokuk. Projects expected to be completed in 2021 include a sidepath on HWY 6, bike lanes and
sidepath in conjunction with the American Legion Road project, Benton Street bike lanes, a lane
conversion and bike lanes on Gilbert Street, and eight bike boulevards.
Core Services
Significant funds are also devoted to artistic and cultural endeavors, fostering the vibrant
community that makes Iowa City such an attractive place to live and visit. Operational support is
provided for the Englert Theater, FilmScene, Summer of the Arts, City of Literature, Mission Creek
Festival, and Riverside Theatre. Funds contributed to the Iowa City Downtown District are used
for placemaking activities and art installations. The budget also includes continued funding for the
Cyclocross World Cup, Bike to Work Month activities, Juneteenth Celebration, events in parks
with the Neighborhood Centers of Johnson County and MLK Day Celebration, and a global multi-
cultural celebration.
Finally, this budget continues to maintain responsible funding levels for roadway repairs and
equipment replacement. Several important road rehabilitation and reconstruction projects are
planned for 2021, including Melrose Avenue improvements,
planning and design for Court Street reconstruction, Benton
Street rehabilitation, Dodge Street and Orchard Street
reconstructions, and an augmented annual pavement
rehabilitation program. Various water, sewer, and landfill
projects are also planned in accordance with replacement and
maintenance schedules. To address the increasingly evident
reality that many City facilities are substandard and fail to
adequately provide for service expansion needs, this budget
continues to fund our facility reserve account. This long-term
financial planning strategy will help the City fund the next
generation of public facilities without the need for undertaking
significant long-term debt.
Financial Goals
The preparation of this budget document was guided by four
primary financial goals that seek to establish a sound fiscal
strategy for the upcoming year and beyond.
First, as noted above, this budget continues to advance the
City’s commitment to responding to the climate action crisis.
The budget maintains the $.24 emergency property tax levy to
Financial Goals
Maintain focus on the urgency of
the climate crisis and
implementing the Climate Action
and Adaptation Plan.
Continue to dedicate resources
towards advancing City Council’s
Strategic Plan priorities and
adopted Master Plans.
Seek fiscal stability through
competing financial pressures of
the COVID-19 pandemic and the
final years of the phased 2013
tax reform.
Support households and
businesses through the
pandemic’s impact with fixed
rates, fees, and continued efforts
to lower the City’s tax rate.
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support an annual dedication of $1 million entirely to initiatives identified in the Climate Action and
Adaptation Plan. Building upon the Fiscal Year 2021 momentum of these initiatives, this budget
expands these efforts while emphasizing the intersectionality of climate action and social equity.
Second, despite new financial challenges, the budget aims to provide enough resources for
making substantial progress on City Council’s Strategic Plan priorities and adopted Master Plans.
The preceding pages of this letter outline several investments, which have been prioritized even
amid the pandemic-related uncertainty, to advance each strategic plan objective.
Third, this budget continues to respond to the State’s phased 2013 property tax reform while also
grappling with new financial pressures brought on by the COVID-19 pandemic. As the taxable
percentage of multi-residential rental property values continues to be reduced over the next few
years, there will be increased pressure on the budget. In recent years, the adopted budgets have
contained funding for new initiatives, maintained or improved service levels, and reduced the tax
levy rate through a reduction in the debt service levy. The City’s ability to accomplish these
objectives has been principally due to the robust growth in taxable valuations in recent years. This
growth has offset the losses associated with the property tax reform phased implementation.
However, the sharp drawback in development during the first year of the COVID-19 pandemic
exacerbates concerns about our community’s ability to sustain the same level of valuation growth
through the final years of property tax reform implementation.
State property tax backfill payments currently total $1.5 million annually. This budget was crafted
anticipating the increasingly real possibility that the state legislature will end or phase out backfill
payments to cities and counties. Should the backfill not be funded, the City will be able to maintain
status quo operational funding but will have difficulty meeting growing service demands and
bolstering support for residents and businesses through the pandemic.
Both past budgets and this budget include measures to financially prepare the City before the full
impacts of the tax reform are realized. This not only enables us to shift resources and adjust
operations gradually, avoiding abrupt service disruptions or steep tax rate increases, but also
provides additional protection against a slower economic recovery from the pandemic than
forecasted. An example of this preparation includes the aforementioned Emergency Reserve
Fund, which was created after the tax reform legislation and now has a balance of approximately
$5.2 million. However, while the City has taken such steps to manage the impacts of tax reform,
maintaining service levels will require prudent decisions as the tax reform continues to be phased
in through Fiscal Year 2024 and COVID-19 impacts continue.
Finally, while special attention is given to the overall impact of tax and fee changes on our
community during every budget cycle, this budget was particularly attentive to the financial
struggles our households and businesses are facing amid the pandemic. Overall, the Fiscal Year
2022 impact to households is a 1.8% increase in City taxes and utility fees over Fiscal Year 2021.
This includes a proposed $0.10 decrease in the City property tax rate, a previously approved 5%
increase in water rates which was delayed due to the pandemic, and a state mandated increase
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in the taxable percentage of residential properties. No new utility fee increases or revenue sources
are being recommended.
Community Fiscal Health and Outlook
Iowa City benefits from a strong local economy anchored by the presence of the University of
Iowa and the University of Iowa Hospitals and Clinics. The local economy consists of a diverse
set of successful industries that together help sustain one of the most consistent stretches of low
unemployment rates in the nation. As an organization, the City has a rich tradition of responsible
budgeting policies that has created a strong financial foundation, which has helped the community
weather past economic recessions while sustaining service delivery and continues to serve as a
cornerstone for current pandemic impacts and the community’s future. In 2020, Moody’s Investors
Service reaffirmed its highest quality bond rating (Aaa) for the City’s general obligation debt with
a stable outlook, citing “the city’s very strong liquidity and fund balance that is supported by ample
revenue raising flexibility… reflects our expectations that the city’s financial position will remain
sound. The city’s strong liquidity and budget management will help it mitigate the impacts of
slowed economic activity because of the coronavirus outbreak.” The Moody’s report notes factors
that could potentially drop the City’s bond rating include significant and sustained reduction in
operating reserves or liquidity or growth in pension or debt burdens. Our bond rating is the product
of prudent budgeting and long-range financial planning. Ultimately, our strong financial position
lowers the cost of borrowing and ensures more of our community’s dollars are spent on service
delivery, infrastructure, and Council’s Strategic Plan priorities, rather than interest payments.
Despite the stable financial position of the organization, the public should be aware of the trends,
pressures and opportunities that are shaping Iowa City in various fashions. Our community has
many attributes that attract new residents to our city. A strong job market, good schools that are
benefitting from significant capital investments, and diverse cultural amenities all contribute to the
desirability of our area for families, retirees, and young professionals to make their permanent
homes. New residents, including students, bring a social and economic vibrancy that helps define
Iowa City. The City Council has adopted several policies and initiatives in recent years to maintain
and enhance our positive attributes, considering this population growth. However, population
growth has a profound effect on service delivery, land use, and housing affordability and creates
additional service demands, stresses transportation and utility infrastructure, and impacts critical
quality of life factors. Fortunately, growth in our tax base in recent years has allowed the City to
weather state property tax reforms implemented thus far and devote significant resources to new
programs and grants while maintaining top notch service delivery.
However, we have seen a significant decline in development due to the pandemic and it should
not be assumed that we will quickly return to our strong, historical rate of growth. Looking ahead,
it is anticipated the resulting stagnation or decrease in taxable value may align with what may be
a more drastic multi-residential rollback percentage in the final year of property tax reform
implementation. These compounding influences will challenge the City’s budget in upcoming
years. For this reason, it is imperative that Iowa City continue to move forward with cautious
budgeting and strong reserves that can help soften the blow of a drawn-out recovery or sudden
revenue losses or expenditure jumps. With this approach, I am confident Iowa City can not only
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navigate the impacts of tax reform and the coronavirus but emerge from it in a strong position that
will allow us to continue to invest in services and projects that make our community one of the
most desirable places to grow up, raise a family, and retire.
Fiscal Year 2022 Budget Overview
In preparing this budget document, City staff accounted for the previously-mentioned financial
goals, the Strategic Plan, and adopted master plans. By adhering to these principles and priorities,
the proposed budget balances both the short-term needs and the long-term health and stability
of the community.
The Fiscal Year 2022 City budget includes budgeted expenditures totaling $173,254,898. Of the
total budget, $63,527,009 is for the General Fund, $24,803,470 is directed to Capital Projects
and $56,585,518 is related to the operations of various enterprise or business funds.
A breakdown of the budget by fund type follows:
Iowa City derives the majority of its revenues through property taxes and charges for services.
The following table and pie chart detail Iowa City's revenue mix across all fund types. The increase
in Other City Taxes reflects a one-time drop in hotel/motel tax revenue during Fiscal Year 2021
due to the pandemic and an increase in TIF revenue due largely to rebates beginning in Fiscal
Year 2022 for Foster Road and Hieronymus Square. The increase in Use of Money and Property
is due to revenue drops in Fiscal Year 2021 due to the pandemic and an estimated increase in
interest income. The decrease in Intergovernmental is related to one-time federal COVID relief
dollars in Fiscal Year 2021 and lower state rollback estimate in Fiscal Year 2022. The increases
in both Charges for Services and Miscellaneous also result from COVID-related revenue shortfalls
in Fiscal Year 2021 for decreased charges and fee collections for services such as recreation
programs, parking fees, and code enforcement. Overall, the City’s revenue is projected to
decrease 1.6%.
General Enterprise Special
Revenue Debt Service Capital
Projects
FY2022 $63,527,009 $56,585,518 $15,254,137 $13,084,764 $24,803,470
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Fiscal Year 2021 Expenditure Comparison by
Fund Type
excludes transfers
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All Funds Revenue Comparison of FY2021 versus FY2022
FY2021
Revised FY2022
Adopted
Percent
Change
Property Taxes $ 65,849,136 $ 66,911,637 1.6%
Other City Taxes $ 4,900,501 $ 6,832,031 39.4%
Licenses & Permits $ 2,571,490 $ 2,575,470 0.2%
Use of Money & Prop $ 2,360,074 $ 2,846,911 20.6%
Intergovernmental $ 48,148,908 $ 36,375,527 -24.5%
Charges for Services $ 39,134,244 $ 43,668,325 11.6%
Misc. $ 7,127,017 $ 7,971,658 11.9%
Other Financial Sources $ 12,557,981 $ 13,010,825 3.6%
Total $182,649,351 $180,192,384 -1.3%
The same Fiscal Year 2022 information above is displayed in the following pie chart. The chart
shows the heavy reliance on taxes and charges for service to support the various services and
projects contained in this budget.
Property Taxes
37%
Other City Taxes
4%
Licenses & Permits
2%
Use of Money & Prop
2%
Intergovernmental
20%
Charges for Services
24%
Misc.
4%
Other Financial
Sources
7%
All Funds Revenue Sources
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It is imperative to consider how the overall revenue and expenditure recommendations in this
budget will impact local households and businesses. The proposed property tax rate is $15.67,
the lowest Iowa City tax rate since Fiscal Year 2002. In Fiscal Year 2012, Iowa City's rate was
one of the highest in the State of Iowa at $17.84. The Fiscal Year 2021 rate represents a 12.2%
decrease over nine years. In recent years, tax levy rate reductions have been made possible
predominantly through decreases in property taxes levied to repay debt.
Based on a lower property tax rate and a previously approved 5% increase in the water rate, it is
estimated that in Fiscal Year 2022 a household with $100,000 assessed home value will pay
approximately $3 more per month, or $35 per year, in taxes and fees for basic City services
compared to the previous year. The following bar chart illustrates the estimated overall financial
impact of tax and fee changes to the average household in Iowa City. The table uses $100,000
in assessed home value so the reader may easily calculate tax payments based on their own
home value.
*The FY2022 water rate includes a 5% increase which was originally approved in 2019 to take effect in
FY2021 but was delayed to FY2022 due to the pandemic.
Perhaps the most significant property tax reform provision for Iowa City’s budget is the
reclassification of multi-residential residential properties, none of which is subject to state backfill
payments. Prior to assessment year 2013 (Fiscal Year 2015), multi-residential properties were
classified as commercial and taxed at 100 percent of assessed value. The following graph
illustrates the dropping taxable percentage of multi-residential properties in the coming
assessment years.
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Property Taxes $922 $930 $900 $901 $869 $884
Stormwater $54 $54 $54 $60 $60 $60
Refuse $191 $205 $229 $229 $240 $240
Sewer - 800 cubic feet $433 $433 $433 $433 $433 $433
Water-- 800 cubic feet $362 $362 $380 $399 $399 $419
Total $1,962 $1,984 $1,996 $2,022 $2,001 $2,036
Percent Change 0.3%1.1%0.6%1.3%-1.1%1.8%
$0
$500
$1,000
$1,500
$2,000
$2,500
Annual Financial Impact to Residential Households
*
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Please note that after Fiscal Year 2023, the taxable percentage of multi-residential properties will
drop to match the residential taxable percentage. This percentage has been as low as 44% in
past years and has more recently been in the mid-fifties, which would mean the taxable
percentage of multi-residential properties would see a drop that is nearly double the percentage
decreases seen in recent years. The property tax reform legislation clearly has provided
significant benefit to owners of multi-residential residential properties. However, it will place great
strain on the City’s budget as it is fully implemented. The reduction in the taxable percentage of
apartment building value reduced the City’s overall taxable valuation by over $123 million for
Fiscal Year 2022.
Property Tax Overview
The taxable valuation of property subject to all levies in Iowa City increased 3.2% for Fiscal Year
2022, despite a reduction in the taxable proportion of multi-residential residential properties. New
construction and higher property values have fortunately been sufficient in recent years to make
up for the reduction in house and apartment taxability, though we do not anticipate that trend to
continue in future years.
The budget reflects a reduction of $0.10 in the property tax levy rate, all of which comes from a
reduction in the debt service levy. The emergency levy remains unchanged from Fiscal Year
2021, which is a $0.24 levy generating approximately $1 million for climate action initiatives. This
marks the tenth straight year of property tax rate decreases. We are unaware of any city in Iowa
that has been able to implement tax rate decreases during each of the last ten years. The
reduction in the debt service portion of the property tax levy was largely achieved through recent
debt restructuring and early bond retirement strategies, in addition to the taxable valuation growth.
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Taxable %
of Multi-Family 100.00%95.00%90.00%86.25%82.50%78.75%75.00%71.25%67.50%63.75%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Taxable % of Multi-residential Residential Properties
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It is important to remember that a property owner’s tax bill is a function of property value, the
taxable percentage of the property as determined by the state, and local levy rates from all taxing
bodies. Despite our reductions in the tax levy rate, many, if not most, property owners’ tax bills
have likely increased.
The following chart is provided for a greater historical perspective on Iowa City’s municipal tax
rate and taxable property value. Tax levy rate reductions in recent years were made possible by
prudent debt strategies, operational efficiencies, and valuation growth. The taxable percentage of
residential properties increased incrementally in Fiscal Year 2022 after several years of
decreases.
The following chart shows a detailed breakdown of the City’s property tax asking for Fiscal Year
2022 compared to the previous year. The debt service levy is reduced by $0.10 and both the
employee benefits levy and emergency levy remained unchanged from Fiscal Year 2021.
Property tax dollars increased approximately 1% over Fiscal Year 2021.
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Tax Val (millions)$2,960 $3,036 $3,137 $3,183 $3,421 $3,543 $3,745 $3,923 $4,258 $4,394
Val % Change 3.93%2.56%3.32%1.46%7.50%3.55%5.72%4.74%8.54%3.19%
Ptax Rate 17.269 16.805 16.705 16.651 16.583 16.333 16.183 15.833 15.773 15.673
Rate % Change -3.21%-2.69%-0.60%-0.32%-0.41%-1.51%-0.92%-2.16%-0.38%-0.63%
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15.5
16
16.5
17
17.5
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Taxable Value (in millions)Property Tax Rate, Value, Receipts
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LEVIES
FY2021 FY2022
Dollars Tax Rate Dollars Tax Rate
per $1,000 per $1,000
General Fund Tax Levies:
General $33,473,409 8.100 $34,188,090 8.100
Transit $3,925,894 0.950 $4,009,714 0.950
Tort Liability $1,200,249 0.290 $1,225,875 0.290
Library $1,115,780 0.270 $1,139,603 0.270
Emergency $991,805 0.240 $1,012,980 0.240
Subtotal: $40,707,137 9.850 $41,576,262 9.850
Agland Levy $4,278 3.003 $4,362 3.003
General Fund Property Taxes $40,711,418 $41,580,623
Special Revenue Levies:
Employee Benefits $13,819,766 3.344 $14,114,827 3.344
Subtotal: $13,819,766 3.344 $14,114,827 3.344
Debt Service $10,872,328 2.578 $10,786,090 2.478
Total City Levy Property Taxes: $65,403,512 15.773 $66,481,540 15.673
% Change from prior year 1.92% -2.16% 1.65% -0.63%
SSMID Levy $445,627 2.000 $430,096 2.000
Total Property Taxes $65,849,139 ---- $66,911,636 ----
Despite the continued efforts to reduce Iowa City’s
property tax rate, our community is still on the higher side
of cities in Eastern Iowa. Iowa City’s higher rate reflects
enhanced levels of public services (e.g. full-time fire
department, senior center, human rights, transit and
library levies, etc.), unique state or federal mandates (e.g.
public safety pension contributions), and other factors,
such as a significant number of University of Iowa
affiliated tax-exempt properties within the jurisdiction.
When compared to the ten largest cities in Iowa, Iowa City has moved from one of the highest tax
rates in the state to the middle of the pack. Continued emphasis on a competitive tax rate will help
facilitate a COVID-related economic recovery and additional growth in future years through a
more affordable environment for residents and businesses. Looking ahead, it is likely Iowa City’s
property tax rate will settle at or near the Fiscal Year 2022 level.
General Fund Overview
The General Fund, which includes services such as police, fire, parks and recreation, and general
government, represents approximately one third of the total budget. General Fund operations are
largely supported by property taxes, which constitute approximately 69% of the total revenue in
this fund. A complete breakdown of General Fund revenue sources can be viewed in the following
pie chart.
FY2021 Municipal Property Tax
Rates in Eastern Iowa
North Liberty $11.03
Coralville $14.31
Cedar Rapids $15.65
Iowa City $15.77
Davenport $16.78
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On the expense side, General Fund operations largely consist of personnel related expenses. In
the Fiscal Year 2022 budget, an estimated 75% of General Fund expenditures are personnel-
related. A summary of General Fund expenditures by category can be viewed in the following
pie chart.
Rising salary and benefit costs (generally 3-4% annually), increased expenses for supplies and
materials, and increased service demands that result from a growing population make prioritizing
General Fund expenditures crucial. Recognizing the increasing service demands, this budget
aims to prioritize filling previously authorized vacant staff positions which were frozen due to the
pandemic and recommends a modest addition of 2.50 FTE property tax supported staff positions.
Though this proposed budget is the tenth consecutive recommended reduction in the property tax
Property Taxes
69%
Other City Taxes
4%
Licenses & Permits
4%
Use of Money &
Property
2%
Intergovernmental
7%
Charges for Fees
& Services
2%
Miscellaneous
11%
Other Financing
Sources
1%
FY2020 Revenues & Other Financing Sources
excludes transfers
Personnel
75%
Services
18%Contingency
1%
Supplies
3%
Capital Outlay
3%
FY 2022 General Fund Expenditures by Category
excludes transfers
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rate, the reduction is in the debt service levy and has minimal impact on the General Fund. Staff
remains committed to identifying efficiencies that strengthen our operation while continuing to
provide the services our community expects and aligning activities with the Council’s Strategic
Plan.
Enterprise / Business Fund Overview
Enterprise or Business Funds refer to specific operations intended to be self-sustaining, or without
the need for subsidy from property taxes or revenue sources other than collected fees that are
directly related to the operation. The budgeted revenues, expenditures, and corresponding fund
balances are detailed in the following table.
Fund Estimated
Revenues
Transfers
In
Budgeted
Expenditures
Transfers
Out
Estimated
Fund
Balance
6/30/20
Restricted,
Committed,
Assigned
Unassigned
Fund
Balance,
6/30/2020
Unassigned
Balance as
% of Rev &
Trans In
Parking 5,977,526 890,000 3,876,341 2,057,535 1,213,100 1,213,100 18%
Transit 11,360,399 5,027,545 12,222,897 885,433 10,588,341 5,131,700 5,426,641 33%
Wastewater 12,630,210 3,680,795 10,036,454 6,036,495 24,830,493 10,674,758 14,155,735 87%
Water 10,815,680 3,181,237 9,272,921 4,069,237 12,675,393 6,682,875 5,992,518 43%
Refuse 3,936,670 6,500 4,033,627 980,065 980,065 25%
Landfill 7,329,338 1,361,409 5,731,930 1,582,471 26,312,311 24,754,149 1,558,163 18%
Airport 373,100 100,000 372,257 32,500 299,005 236,156 62,849 13%
Stormwater 1,744,660 1,501,200 648,988 2,990,000 1,011,187 399,000 612,187 19%
ICHA 10,656,382 10,390,103 51,836 6,185,850 1,341,814 4,844,036 45%
Each of the City's enterprise funds are in varying, yet stable conditions. A 5% water rate increase
that was approved in 2019 to take effect in Fiscal Year 2021 was delayed due to the pandemic
and will take effect beginning in Fiscal Year 2022 instead.
Recognizing the financial pressures many households and businesses are facing due to impacts
from COVID-19, no other new rate or fee increases were recommended for the Fiscal Year 2022
budget.
Capital Improvement Plan Highlights
The capital budget for Fiscal Year 2022 totals $24,803,470 and the five-year CIP totals
$184,333,930. The majority of CIP projects in the five-year period improve the local transportation
network, municipal utility system, and public parks and open spaces. The five-year program
continues to reflect the City Council’s priorities established in previous fiscal years. As funding
allows, other non-committed dollars are directed toward critical infrastructure projects and
initiatives that address the City Council’s strategic plan priorities.
24
Staff is projecting general obligation bond issues of $12.4 million in Fiscal Year 2022 and $12.1
million in Fiscal Year 2023, including 2% for bond issuance costs. The use of general obligation
bonds is required to carry out the projects that are being recommended. The level of bonding
projected is well below the thresholds established by the State of Iowa and is consistent with Iowa
City’s own internal debt policies.
In addition to annual projects that require significant resources such as water and sewer main
replacements, fire truck replacements, annual street overlays, facility projects, and curb ramp
replacements, the five-year Capital Improvement Plan includes several notable projects.
Examples of significant projects planned for the coming calendar years include the following
(many projects will span multiple years):
2021
• Bicycle Master Plan Improvements
(each year of the CIP)
• Benton Street rehabilitation
• Melrose Avenue improvements
• Curbside collections automated truck
• Smart parking meter replacements
• Highway 6 Trail extension
• Glendale Park improvements
• Pedestrian Mall playground replacement
• City Park ball field improvements
Streets, Bridges, and
Traffic Engineering
45%
Water/Wastewater/Stormwater
18%
Landfill
5%
Transit & Parking
13%
Culture & Rec
14%
Public Safety
3%
Airport
2%
Community & Economic
Development
0%
Capital Improvement Projects by Category 2021-2025
25
2022
• Rochester Avenue reconstruction
• Chadek Green Park improvements
• Court Hill Park improvements
• Whispering Meadows Park
improvements
• Gilbert Street Bridge replacement
• Off road bike trail development
• Fairchild Street Reconstruction
• Parking ramp automated equipment
2023
• Willow Creek Trail replacement
• Kiwanis Park improvements
• Happy Hollow Playground Replacement
• Dubuque Street reconstruction
• Mercer Ball Diamond improvements
• Court Street Reconstruction
• Rohret South Sewer
• Wastewater Digester Complex
rehabilitation
• Future Landfill Cell
• Kirkwood to Capitol Street connection
• Transit facility relocation
• Recreation Center ADA restrooms
• Landfill building replacement
2024
• Dodge Street reconstruction
• Park Road reconstruction
• North Gilbert Street reconstruction
• Hunter’s Run Park improvements
• Landfill Dual Extraction System
Expansion
• Airport apron expansion
• Upper City Park shelters and
playgrounds
• Palisades or Stone Bridge Park
development
• Library furnishings replacement
2025
• Highway 6 trail extension
• Lower City Park shelters & restroom
replacement
• City Park pool replacement
• Taft Avenue reconstruction
• Burlington Street bridge replacement
• Hickory Hill Park shelters and restroom
• Napoleon Park softball field renovation
• ADA elevator improvements
• Happy Hollow, Benton Hills, College
Green Parks playgrounds
Debt Service
The City Council’s Debt Management policy includes a goal that outstanding general obligation
and tax increment revenue bonded debt not exceed 0.75% of total assessed property valuations.
This follows financial best practices for Aaa rated communities. At the end of Fiscal Year 2022,
outstanding debt is projected to be just under 1% of valuations.
26
The State of Iowa limits city debt to no more than 5% of the total assessed value of taxable
property within the corporate limits as established by the City Assessor. The budget anticipates
an outstanding debt of $68 million at Fiscal Year 2022 year-end, which is less than 1% of total
valuations and well below the State of Iowa threshold. Considering these figures, Iowa City is
carrying debt equal to roughly 19% of the allowable level.
Iowa City's internal fiscal policy specifies that the debt service levy shall not exceed 30% of the
total property tax levy. The Fiscal Year 2022 budget includes a debt service levy that is
approximately 16% of the total levy. The proposed budget recommends a reduction in the debt
service levy of $0.10.
The chart below tracks outstanding general obligation and TIF revenue debt and outstanding debt
as a percentage of total valuations.
The budget continues to reflect prudent borrowing practices, which help preserve financial
flexibility and ultimately lower the cost of borrowing. Over the last several years, Iowa City has
worked to reduce its debt load, which in turn has allowed the City to devote more financial
resources to service delivery and fewer resources to interest payments. Recent early general
obligation bond redemptions include $2.1 million in Fiscal Year 2016, $2.2 million in Fiscal Year
2017, $5.5 million in Fiscal Year 2018, and $3.9 million in Fiscal Year 2019. These early
redemptions save the City a significant amount in interest expense, allowing these funds to be
used to support public services rather than servicing debt payments.
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 *FY21 *FY22 *FY23
Debt (millions)$61.2 $67.1 $62.0 $57.9 $66.8 $66.9 $67.4 $68.2 $66.8 $68.0 $69.1
% of Val 1.33%1.44%1.28%1.17%1.25%1.22%1.14%1.11%0.97%0.96%0.95%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
Millions of Dollars ($)General Bonded Debt Outstanding
and Percent of Total Valuation
27
Internal Service Fund Highlights
Internal Service Funds serve needs that are internal to the City as an organization. These are
non-budgetary funds and are an internal financing mechanism for operations such as vehicle
replacement and information technology services. Expenditures made from these funds are
charged back to departments.
All funds are in good condition with healthy balances. Strong balances create reserves that can
provide flexibility to deal with unexpected costs or opportunities.
Looking Ahead
In summary, this year’s budget was developed based on a conservative optimism that revenue
levels impacted by the pandemic will begin to stabilize but also a recognition that the revenue
sources will continue to be affected by 2013 reforms at the state level concerning commercial
property taxes, the tax classification of multi-residential buildings, and the allowable growth
percentage. The statewide changes will disproportionately affect growing communities with large
multi-residential residential markets like Iowa City. Additionally, we are aware that the recent pace
of development is not likely to be sustainable over the next few years.
Although we must remain cognizant of these revenue trends, the City is currently in a secure
financial position. While the permanent resources and positions added through the previous
budget was a bold reflection of the economic climate during that time, this budget assumes a
more status quo approach in order to maintain these previously established, excellent service
levels. The Fiscal Year 2022 operating budget continues to prioritize funding for Strategic Plan
initiatives and projects that support our community’s values. Capital investments continue to focus
on addressing deferred maintenance and preparing to respond to new capital opportunities.
It cannot be understated how rare the flexibility to invest millions of dollars in climate action
initiatives, social justice and racial equity, affordable housing, historic preservation, and public
health and crisis services is for a municipal government. These audacious undertakings are being
accomplished as we continue to address deferred road, facility, and park maintenance, fill staff
positions to serve a rapidly growing community, invest in healthy reserve funds, and tackle the
challenge of aggressive multi-residential residential rollback rates. The ability to accomplish these
goals simultaneously is an exceptional financial feat and our community should be very proud.
The capacity to fund these initiatives is the direct result of decades of prudent financial planning
by City Councils and staff.
Conclusion and Acknowledgements
This budget document reflects Iowa City’s focus on providing high quality municipal services in a
fiscally responsible manner. It was crafted with guidance provided by the City Council through the
Strategic Plan and adopted Master Plans.
The City’s financial condition remains strong despite recent, unexpected challenges and our
reserve levels provide sufficient flexibility in the event of such unexpected conditions. While
property tax reform and unknown, long-term economic impacts from the pandemic will create
funding challenges in the upcoming years, with proper planning and realistic priority setting, the
City will be able to achieve our long-term goals.
28
29
TRANSIT FUND
The Transit Fund accounts for the operations of the City’s public transportation operations. The
Transit enterprise fund utilizes user fees, property taxes, and State and Federal funding to
provide transportation services throughout the City including para-transit services.
In fiscal year 2020, the unassigned fund balance decreased by 27.6% or $730,528 over fiscal
year 2019 to $1,916,820 primarily due to the transfers to the Capital Reserves for bus and
facility replacement. The fiscal year 2021 projected unassigned fund balance is estimated to
increase by 6.6% or $127,170 from fiscal year 2020 to $2,043,990. This increase is primarily
due to the receipt of CARES Act grant funding and due to a surplus generated by the Court
Street Transportation Center.
Unassigned fund balance is budgeted to grow by 166% or $3,382,651 in fiscal year 2022 to
$5,426,641. This increase is primarily due to the anticipated receipt of $3,709,870 in CARES
Act grant funding.
(1)FY21 - FY23 figures are estimates
The Transit Fund has assigned fund balance for replacement reserves. For fiscal year 2022,
the assigned fund balance is estimated at $5,131,700. Funds are transferred from the Transit
operations to the replacement reserve to cover 20% of depreciation expense for buses and
facilities. Grants typically cover about 80% of the cost of replacement, and the replacement
reserves are expected to cover the remaining 20%. In fiscal year 2020, $1,380,922 was
transferred to the replacement reserves and in fiscal year 2021, $160,000 is budgeted to be
transferred to the replacement reserves. In fiscal year 2022, the projected to transfer is
$885,433 due to the additional match required to purchase electric buses rather than diesel.
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Assigned $777,476 $3,929,573 $4,997,537 $5,234,737 $5,131,700 $1,291,700
Unassigned $5,381,624 $2,647,348 $1,916,820 $2,043,990 $5,426,641 $5,687,985
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Fund Balance (1)
382
Revenues:
The Transit fund is funded through several revenue sources:
•Federal Operating Assistance: Based on an MPOJC formula, these funds are
distributed annually between Cambus, Coralville Transit, and Iowa City Transit.
State Operating Assistance: Job Access and Reverse Commute Program (JARC),
is a Federally-funded, application-based grant program, with annual allocations.
This is 34% of fiscal year 2020 budgeted revenue.
•Transit Property Tax Levy: Iowa State Code chapter 384.12.10 provides the legal
authority for municipalities to levy additional taxes, including “a tax for the
operation and maintenance of a municipal transit system…” Iowa City transit
property tax levy is $.95 per thousand of valuation. These property tax funds are
collected in the General fund and transferred to the Transit fund.
•Bus Fares: Fares amount to 10.7% of the Transit fund revenue. No fare
increases are being proposed for fiscal year 2022. This share is lower than most
years due to the CARES Act and electric bus grant funding.
•Court Street Transportation Parking and Rent Revenues: These revenues include
all hourly ($1.00 per hour after the first hour) and permit ($85 per month) parking
as well as rent from the commercial properties.
•Other Revenue: The Transit fund also receives revenue from advertising and
other miscellaneous sources.
Fiscal year 2022 revenue is projected to increase from the fiscal year 2021 revised revenue
estimates by 152%. The increase is due to the CARES Act grant funding budgeted in fiscal
year 2022.
The Transit Property Tax Levy (including State backfill funds), estimated at $4,142,112, will
be transferred into the Transit fund from the General fund in fiscal year 2022. Combined
with funding from other governments, approximately $13.3 million of the $15.5 million in
revenues and transfers in (not including reserve transfers) or 85.8% is from sources of
revenue not generated by transit operations. This is a higher than fiscal year 2021 funding
due to the CARES Act and electric bus grant revenue.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2018 Actual 2019 Actual 2020 Revised 2021 Budget 2022 Projected 2023 Projected
Revenue Trends
Charges for Services Intergovernmental Use of Money & Property
Miscellaneous Other Financial Sources
383
Expenditures:
Fiscal year 2022 budgeted expenditures represent a 54.4% increase from the fiscal year
2021 revised expenditure budget. The increase is due to the bus replacement expenditures
budgeted in Capital Outlay as a result of the grant funding awarded.
Long-term Projections:
The Transit Fund revenues in fiscal year 2022 are high due to receipt of CARES Act grant
funding. Transit Fund revenues are projected flat for future years with any increases coming
from growth in the Transit Property Tax Levy transfer in. Transit Property Taxes are projected
with taxable valuation growth of 3% in fiscal year 2023, 2.41% in fiscal year 2024, and 3% in
fiscal years 2025 through 2027. The final drop in the Multi-Residential rollback rates to match
the Residential rollback rates occurs in fiscal year 2024.
Future expenditures were projected with the assumptions that personnel related expenditures
would grow at a 3% rate annually and services and supplies would grow at a 2% rate
annually. Expenditures in fiscal year 2022 are higher due to purchases of new buses and
higher in fiscal year 2023 due to Capital Projects Fund transfers out for a new Transit Facility.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2018 Actual 2019 Actual 2020 Revised 2021 Budget 2022
Projection
2023
Projection
Expenditure Trends
Personnel Services Supplies Capital Outlay
384
2018 2019 2020 2021 2022 2023
Actual Actual Actual Revised Budget Projected
Fund Balance, July 1 6,427,042$ 6,159,100$ 6,576,920$ 6,914,357$ 7,278,727$ 10,558,341$
Revenues:
Use Of Money And Property
Interest Revenues 76,563$ 137,651$ 103,672$ 50,000$ 50,000$ 50,000$
Rents 138,761 137,562 152,123 47,570 130,050 130,050
Intergovernmental
Fed Intergovnt Rev 2,616,326 1,692,952 2,562,895 2,470,160 8,590,049 1,862,899
State 28E Agreements - - 52,611 - - -
Other State Grants 3,298,477 456,467 531,641 456,470 531,640 531,640
Local 28E Agreements 37,622 37,749 60,186 38,750 39,140 39,140
Charges For Fees And Services
Transit Fees 1,225,688 1,220,379 968,974 750,390 1,220,390 1,220,390
Misc Charges For Svc 1,285 910 - 910 - -
Refuse Charges 291 - - - - -
Parking Charges 812,026 774,165 621,013 586,810 747,110 747,110
Miscellaneous
Printed Materials - - 15 - - -
Misc Merchandise 177 1,183 - 1,180 - -
Other Misc Revenue 69,093 76,738 61,468 48,065 52,020 52,020
Other Financial Sources
Sale Of Assets - 23 9 - - -
Sub-Total Revenues 8,276,309 4,535,779 5,114,607 4,450,305 11,360,399 4,633,249
Transfers In:
Transit Property Tax Levy 3,376,455 3,563,749 3,660,631 4,080,088 4,142,112 4,265,783
Capital Reserves 390,222 3,152,097 1,380,922 160,000 885,433 160,000
Sub-Total Transfers In 3,766,677 6,715,846 5,041,553 4,240,088 5,027,545 4,425,783
Total Revenues & Transfers In 12,042,986$ 11,251,625$ 10,156,160$ 8,690,393$ 16,387,944$ 9,059,032$
Expenditures:
Transit Admin 428,760$ 444,131$ 501,285$ 579,637$ 588,589$ 602,228$
Transit Operations 5,157,570 5,336,491 5,881,294 5,747,457 5,905,746 6,061,233
Fleet Maintenance 1,417,846 1,453,355 1,372,252 1,372,717 1,503,878 1,540,561
Court St Transportation Center 197,031 212,632 218,120 216,212 218,934 223,666
Replacement Reserve 4,719,500 - 312,957 - 4,005,750 -
Sub-Total Expenditures 11,920,706 7,446,609 8,285,908 7,916,023 12,222,897 8,427,688
Transfers Out:
Capital Project Fund - 235,099 151,894 250,000 - 4,050,000
Capital Reserves 390,222 3,152,097 1,380,922 160,000 885,433 160,000
Sub-Total Transfers Out 390,222 3,387,196 1,532,815 410,000 885,433 4,210,000
Total Expenditures & Transfers Out 12,310,928$ 10,833,805$ 9,818,723$ 8,326,023$ 13,108,330$ 12,637,688$
Fund Balance, June 30 6,159,100$ 6,576,920$ 6,914,357$ 7,278,727$ 10,558,341$ 6,979,685$
Restricted / Committed /Assigned 777,476 3,929,573 4,997,537 5,234,737 5,131,700 1,291,700
Unassigned Balance 5,381,624$ 2,647,348$ 1,916,820$ 2,043,990$ 5,426,641$ 5,687,985$
% of Revenues & Transfers In 45%24%19%24%33%63%
Transit (7150 - 7151)
Fund Summary
385
TRANSIT OPERATIONS
The Transit Division is a self-supporting enterprise fund that provides fixed-route and paratransit
bus services as well as operating the Court Street Transportation Center. The division is
committed to providing safe, courteous, and quality transportation to the citizens and visitors of
Iowa City as well as the City of University Heights. The division’s budget is organized into five
activities:
Transit Administration
Transit Administration personnel consists of a 45% cost share of the Transportation Services
Administration budget, an Operations Supervisor, Customer Service Representatives, and a Data
Analyst. Administration oversees the operation of:
Transit Operations (fixed-route and paratransit services)
Iowa City Transit fixed route operations include 20 routes during weekday peak service within the
corporate limits of Iowa City and University Heights. Fixed route bus service is operated with a
27 bus fleet, Monday - Friday from 5:45 am - 11:20 pm, Saturday from 5:45 am - 7:40 pm. During
peak hours, most routes operate on 30 minute headways while providing hourly service during
off-peak and Saturdays. Complimentary paratransit service is provided mirroring the hours of
operation of the fixed route service. These services are contracted through an agreement with
Johnson County SEATS with vehicles provided by the City of Iowa City.
Fleet Maintenance
Iowa City Transit maintains a fleet of 27 heavy duty buses and 13 para-transit buses, all of which
are ADA accessible.
Court Street Transportation Center
In addition to operating the public transit services, Iowa City Transit also operates the Court Street
Transportation Center. This multi-use facility houses a 600-space parking facility and four
commercial properties. This facility was FTA funded resulting in all revenues being directed to
the transit fund.
Replacement Reserve
This reserve holds fund for the replacement of buses and facilities. Funds equal to 20% of the
accumulated depreciation of the City’s bus fleet and maintenance facility are maintained in this
reserve to be used as a match for state or federal grants. This reserve also accounts for the
replacement grants and purchases activity.
386
HIGHLIGHTS
•Provided 1,156,346 million passenger trips in fiscal year 2020. This is a 22% decrease
from fiscal year 2019, attributed to the COVID-19 pandemic
•Provided 649,391 miles and 49,395 hours of service
•Contracted para-transit service provided 73,489 passenger trips in fiscal year 2020, a
24% decrease from fiscal year 2019
Recent Accomplishments:
•Implemented protocols and
strategies to maintain safe essential
transit services during the COVID-19
pandemic
•Lead the Iowa City Area Transit
Study in partnership with the City of
Coralville and the University of Iowa
CAMBUS
•Introduced a new user-friendly trip
planning and arrival information app
called “Transit”
•Awarded $3,017,280 Federal Transit
Administration grant to replace four
of our aged diesel buses with clean-
fuel battery electric buses
Upcoming Challenges:
•Continuing to operate and provide
essential transportation services
during the evolving COVID-19
pandemic
•Recovering from COVID-19 ridership
losses and revenue shortfalls
•Implementing recommendations
from the Iowa City Area Transit
Study
Staffing:
FY2020 FY2021 FY2022
Total FTE’s 50.38 51.13 51.13
Staffing Level Change Summary:
There are no staffing level changes in the fiscal year 2022 budget.
Service Level Change Summary:
There are no service level changes included in the fiscal year 2022 budget.
Financial Highlights:
In Transit Operations, Services expenditures increased by 9.9% in the fiscal year 2022 budget
due to an increase in amounts paid for paratransit services with Johnson County.
387
Fleet Maintenance saw a decrease of 52.5% in Services expenditures for fiscal year 2022
primarily due to a decrease in other equipment repair and maintenance fees. Additionally,
Supplies expenditures in the activity increased by 27.2% in fiscal year 2022 due to diesel fuel,
which saw budget cuts in the fiscal year 2021 due to the COVID-19 pandemic.
In the Court Street Transportation Center, Services expenditures in fiscal year 2022 increased
by 7.8%. This decrease is the result of an increase in repair and maintenance fees.
388
Strategic Plan Goal:
Department Goal:
Department Objective:
Performance Measures:
FY 2018 FY 2019 FY 2020 FY 2021
Projected
FY 2022
Estimate
Riders per Revenue Vehicle Hour 27.77 27.56 21.30 20.00 21.30
Strategic Plan Goal:
Department Goal:
Department Objective:
Performance Measures:
FY 2018 FY 2019 FY 2020 FY 2021
Projected
FY 2022
Estimate
Fare-box/Expense Ratio 22%21%16%15%16%
Fare-box revenues to cover 30% of operating costs.
GOALS, OBJECTIVES, and PERFORMANCE MEASURES
Foster Healthy Neighborhoods and Affordable Housing
Throughout the City
Provide safe, courteous, and quality transportation services.
Increase Rides per Revenue Hour to 35
Invest in Public Infrastructure, Facilities, and Fiscal Reserves
Increase fare-box/expense ratio.
389
Activity: Transit Admin (810210)Fund: Transit (7150)
Division: Public Transportation Department: Transportation Services
2018 2019 2020 2021 2022 2023
Actual Actual Actual Revised Budget Projected
Revenues:
Use Of Money And Property
Interest Revenues 76,563$ 137,651$ 103,672$ 50,000$ 50,000$ 50,000$
Intergovernmental
Fed Intergovnt Rev - - 700,000 700,000 3,709,870 -
Miscellaneous
Printed Materials - - 15 - - -
Other Misc Revenue - - 2,547 - - -
Other Financial Sources
Sale Of Assets - 23 - - - -
Transfers In:
Transfer In - Transit Property Tax Levy 3,376,455 3,563,749 3,660,631 4,080,088 4,142,112 4,265,783
Total Revenues & Transfers In 3,453,018$ 3,701,423$ 4,466,865$ 4,830,088$ 7,905,277$ 4,315,783$
Expenditures:
Personnel 119,213$ 115,331$ 117,800$ 186,217$ 186,758$ 192,361$
Services 309,411 327,657 382,920 392,869 401,431 409,460
Supplies 136 1,143 564 551 400 408
Total Expenditures 428,760$ 444,131$ 501,285$ 579,637$ 588,589$ 602,228$
Personnel Services - FTE 2018 2019 2020 2021 2022
Customer Service Rep - Trans Serv 1.00 0.75 0.75 0.88 0.88
Data Analyst - - - 0.50 0.50
Operations Supv - Trans Serv 0.50 0.50 0.50 0.50 0.50
Total Personnel 1.50 1.25 1.25 1.88 1.88
Activity Summary
390
Activity: Transit Operations (810220)Fund: Transit (7150)
Division: Public Transportation Department: Transportation Services
2018 2019 2020 2021 2022 2023
Actual Actual Actual Revised Budget Projected
Revenues:
Intergovernmental
Fed Intergovnt Rev 1,497,897$ 1,692,952$ 1,862,895$ 1,692,960$ 1,862,899$ 1,862,899$
State 28E Agreements - - 52,611 - - -
Other State Grants 585,201 456,467 531,641 456,470 531,640 531,640
Local 28E Agreements 37,622 37,749 60,186 38,750 39,140 39,140
Charges For Fees And Services
Transit Fees 1,225,688 1,220,379 968,974 750,390 1,220,390 1,220,390
Misc Charges For Svc 1,285 910 - 910 - -
Miscellaneous
Other Misc Revenue 8,495 10,851 - - - -
Sale Of Assets - - 9 - - -
Total Revenues 3,356,188$ 3,419,308$ 3,476,316$ 2,939,480$ 3,654,069$ 3,654,069$
Expenditures:
Personnel 3,215,007$ 3,355,501$ 3,492,005$ 3,681,993$ 3,737,167$ 3,849,282$
Services 1,763,895 1,956,533 2,355,392 1,953,471 2,146,539 2,189,470
Supplies 30,710 24,457 33,897 27,993 22,040 22,481
Capital Outlay 147,958 - - 84,000 - -
Total Expenditures 5,157,570$ 5,336,491$ 5,881,294$ 5,747,457$ 5,905,746$ 6,061,233$
Personnel Services - FTE 2018 2019 2020 2021 2022
M.W. I - Transit 2.00 2.00 2.00 2.00 2.00
Transit Operator 37.75 37.75 37.75 37.75 37.75
M.W. II - Transit 1.00 1.00 1.00 1.00 1.00
Operations Supervisor - Transp. Serv.1.00 1.00 1.00 1.50 1.50
Operations Specialist - Transp. Serv.0.38 0.38 0.38 - -
Sr. M.W. - Parking & Transit 0.50 0.50 0.50 0.50 0.50
Total Personnel 42.63 42.63 42.63 42.75 42.75
Capital Outlay 2021 2022
Plexiglass protective barriers 84,000$ -$
Total Capital Outlay 84,000$ -$
Activity Summary
391
Activity: Fleet Maintenance (810230)Fund: Transit (7150)
Division: Public Transportation Department: Transportation Services
2018 2019 2020 2021 2022 2023
Actual Actual Actual Revised Budget Projected
Revenues:
Charges For Fees And Services
Refuse Charges 291$ -$ -$ -$ -$ -$
Miscellaneous
Misc Merchandise 177 1,183 - 1,180 - -
Other Misc Revenue 999 - 6,537 - - -
Total Revenues 1,467$ 1,183$ 6,537$ 1,180$ -$ -$
Expenditures:
Personnel 518,306$ 511,567$ 561,310$ 641,297$ 660,544$ 680,360$
Services 156,994 149,659 44,830 109,324 51,939 52,978
Supplies 742,546 792,129 766,112 622,096 791,395 807,223
Total Expenditures 1,417,846$ 1,453,355$ 1,372,252$ 1,372,717$ 1,503,878$ 1,540,561$
Personnel Services - FTE 2018 2019 2020 2021 2022
Mechanic II - Transit 2.00 2.00 2.00 2.00 2.00
Mechanic III - Transit 2.00 2.00 2.00 2.00 2.00
Operations Supv - Trans Serv 1.00 1.00 1.00 1.00 1.00
Parts/Data Entry Clk - Transit 1.00 1.00 1.00 1.00 1.00
Total Personnel 6.00 6.00 6.00 6.00 6.00
Activity: Court St Transportation Center (810240)Fund: Transit (7150)
Division: Public Transportation Department: Transportation Services
2018 2019 2020 2021 2022 2023
Actual Actual Actual Revised Budget Projected
Revenues:
Use Of Money And Property
Rents 138,761$ 137,562$ 152,123$ 47,570$ 130,050$ 130,050$
Charges For Fees And Services
Parking Charges 812,026 774,165 621,013 586,810 747,110 747,110
Miscellaneous
Other Misc Revenue 59,600 65,887 52,384 48,065 52,020 52,020
Total Revenues 1,010,387$ 977,614$ 825,520$ 682,445$ 929,180$ 929,180$
Expenditures:
Personnel 31,597$ 32,316$ 36,904$ 34,377$ 35,381$ 36,442$
Services 163,979 172,801 179,912 167,610 180,804 184,420
Supplies 1,455 7,515 1,305 14,225 2,749 2,804
Total Expenditures 197,031$ 212,632$ 218,120$ 216,212$ 218,934$ 223,666$
Personnel Services - FTE 2018 2019 2020 2021 2022
M.W. I - Parking Systems 0.50 0.50 0.50 0.50 0.50
Total Personnel 0.50 0.50 0.50 0.50 0.50
Activity Summary
Activity Summary
392
Activity: Replacement Reserve (810280/810290)Fund: Transit (7151)
Division: Public Transportation Department: Transportation Services
2018 2019 2020 2021 2022 2023
Actual Actual Actual Revised Budget Projected
Revenues & Transfers In:
Intergovernmental
Fed Intergovnt Rev 1,118,429$ -$ -$ 77,200$ 3,017,280$ -$
Other State Grants 2,713,276 - - - - -
Other Financial Sources
Transfer In from Transit Operations 390,222 3,152,097 1,380,922 160,000 885,433 160,000
Total Revenues & Transfers In 4,221,927$ 3,152,097$ 1,380,922$ 237,200$ 3,902,713$ 160,000$
Expenditures:
Supplies 7,396$ -$ -$ -$ -$ -$
Capital Outlay 4,712,104 - 312,957 - 4,005,750 -
Total Expenditures 4,719,500$ -$ 312,957$ -$ 4,005,750$ -$
Capital Outlay 2021 2022
Four Electric Bus replacement upgrades -$ 4,005,750$
Total Capital Outlay -$ 4,005,750$
Activity Summary
393