HomeMy WebLinkAboutFY2017 Budget At-A-Glance1
City of Iowa City
FY2017 Budget At-a-Glance
July 1, 2016 to June 30, 2017
Fiscal Year 2017 Budget Summary:
Priorities determined by Strategic Plan
Budget guided by clear financial goals
Focused on a sustainable, multi-year
financial model
Adopted property tax levy rate,
$16.58 per $1,000 of taxable value
Rate decrease of $.07 from Fiscal
Year 2016
Fifth consecutive rate decrease
Strategic Plan and the Budget
This Fiscal Year 2017 budget was prepared with a
strategic plan serving as a guide. In preparing the
budget, the City recognized the impact that
funding decisions would have on future progress
to the organization’s stated priorities in the plan.
As a result, this budget aims to provide resources
that accomplish the following objectives:
1. Maintain the City’s core municipal
services at levels that meet or exceed
community expectations and the City
Council’s strategic plan goals, and
2. Direct discretionary funding to projects
and initiatives that directly align with the
stated priorities of the Strategic Plan, and
3. Continue to strengthen the City’s strong
financial foundation and enhance the
budget document through the
incorporation of best practices in the
industry.
The following are the strategic plan priorities and
initiatives that were adopted by the City Council
along with the Fiscal Year 2017 budget.
Strategic Plan Priorities
This Strategic Plan intends to foster a more
Inclusive, Just and Sustainable Iowa City.
1. Promote a Strong and Resilient Local
Economy
2. Encourage a Vibrant and Walkable Urban
Core
3. Foster Healthy Neighborhoods throughout
the City
4. Maintain a Solid Financial Foundation
5. Enhance Community Engagement and
Intergovernmental Relations
6. Promote Environmental Sustainability
7. Advance Social Justice and Racial Equity
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Maintaining a Solid Financial
Foundation
Preparation of the City budget was guided by the
City’s four primary financial goals.
First, the City continues to respond to the State’s
2013 property tax reforms. The estimated impact
over the first ten years is over $50 million in lost
revenue, with approximately $15 million eligible
to be backfilled by the state. The City has taken
steps to manage the impacts of tax reform, but
maintaining service levels will require prudent
decisions over the next several years. By
preparing for reform before the full financial
impacts are realized, the City will be able to shift
resources and adjust operations gradually,
avoiding abrupt service disruptions or steep tax
rate increases. It is also important to manage the
budget in a way that does not shift the entire
burden of tax reform to residential taxpayers.
Second, the budget attempts to establish
conditions that will enhance the community's
fiscal condition and ensure that it will maintain
its prestigious Moody's Aaa bond rating. Council
has adopted fund balance and debt policies
consistent with Moody’s best practices and are
intended to preserve our top bond rating. Bond
ratings have real impacts on community well-
being; dollars used to make interest payments
compete with those used to provide important
services.
Third, the budget strives to maintain an
affordable tax and fee environment for residents
and businesses. We pursue efficient service
delivery, review fees annually, and maintain
adequate reserves in order to avoid severe,
immediate impacts to residents’ household
finances. Maintaining a stable environment for
the controllable costs of doing business in our
community helps to create an atmosphere
conducive to small business development.
Increased costs have a disproportionate impact on
new or family-owned businesses that may not
have the resources to weather a sharp uptick in
expenses.
Finally, we will attempt to continue to earn the
Government Financial Officers Association
(GFOA) Distinguished Budget Award and the
GFOA Certificate of Achievement for Excellence
in Financial Reporting for the City’s
Comprehensive Annual Financial Report. These
awards are strong indicators of transparency and
accountability in financial reporting.
Financial Goals
Continue to implement steps to respond to the
property tax shortfall resulting from 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 achieve the GFOA Distinguished
Budget Award and Certificate of Achievement
for Excellence in Financial Reporting.
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General Fund Highlights
The General Fund is the City’s primary operating
fund and represents approximately 32% of the
total budget. A view of General Fund revenue
sources can be viewed in the following pie chart.
On the expense side, General Fund operations
largely consist of personnel expenses. In the
FY2017 budget, 72% of General Fund
expenditures are personnel related. A view on
General Fund expenditures by category can be
viewed in the following pie chart.
The General Fund activities include the following
departments and activities:
City Council Neighborhood & Development Services
City Clerk Parks & Recreation
City Attorney Library
City Manager Senior Center
Finance Public Works
Police Transportation & Resource Management
Fire Administration
The General Fund FY2017 budget also
incorporates new programs and initiatives
intended to address the City Council’s strategic
plan priorities, including those that meet
sustainability, inclusivity, and social justice goals.
Items of note in the General Fund budget
include:
Funding for an intern in the Sustainability
Office and increased hours for part-time
historic preservation staff.
Increased funding for nonprofit agencies
through the Human Rights Office and the
creation of an Iowa City social service
endowment fund with the Community
Foundation of Johnson County.
An update to the Parks & Recreation Master
Plan.
Business incentives to positively affect
employment opportunities for persons of
color and youths.
Enhanced street tree planting program.
Funding for a full-time police Community
Outreach (CSO) position.
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Debt Service Fund Highlights
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 $58.96 million at FY2017 year
end, which is 1.1% of total valuations and well
below the State of Iowa threshold. Considering
these figures, Iowa City is carrying debt equal to
roughly 22.0% of the allowable level. The
following chart provides a historical view of Iowa
City’s debt in relation to the allowable debt level.
Capital Improvement Plan (CIP)
Highlights
The capital budget for FY2017 totals $39,845,520
and the five year CIP totals $175,580,892. The
majority of CIP projects in the plan improve the
local transportation network and municipal utility
system. The five year CIP plan continues to
reflect the City Council’s strategic priorities.
Examples of significant projects planned for the
coming fiscal years include:
Flood Recovery and Mitigation:
Gateway project - $53.4 million
Critical Infrastructure Need / Committed Projects:
Annual Pavement Rehab - $7.5 million
Washington St. Reconstruct - $5.3 million
American Legion Rd. - Scott to Taft - $7.8
million
Annual Sewer Main replace - $2.5 million
Mormon Trek and Benton
Intersection/Road Diet - $1.2 million
Strategic Economic Development Activities:
Towncrest Area Redevelop - $0.6 million
Riverfront park - $1.0 million
A Strong Urban Core:
First Ave RR Underpass - $4.5 million
Parking facility restoration - $1.4 million
Riverside Dr. ped tunnel - $1.5 million
Burlington/Madison intersection - $2.3
million & Burlington/Clinton intersection -
$1.1 million
Black Hawk Mini Park/Ped Mall - $2.3
million
East/West Wing Ped Mall Reconstruction -
$4.2 million
Healthy Neighborhoods:
Complete Streets Projects - $1.2 million
Elementary school recreation facility
partnership - $0.8 million
Neighborhood park improvements:
Frauenholtz-Miller, Pheasant Hill,
Creekside, Highland
For more information about the Iowa City
budget you can find the full budget
document and historical budget documents
at https: //www.icgov.org/budget