HomeMy WebLinkAboutFY2018 Budget At-A-GlanceFY2018 BUDGET
AT-A-GLANCE
JULY 1, 2017 TO JUNE 30, 2018
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. This Budget at-a-glance
document summarizes the City’s budgeting methods, highlights revenues and expenses for Fiscal Year
2018 (FY2018) and provides an outlook for future years.
FY2018 Budget Summary:
Budget priorities determined from the
Council Strategic Plan
Budget guided by clear financial goals
Focused on a sustainable, multi-year
financial model
Adopted property tax levy rate, $16.33
per $1,000 of taxable value
Rate decrease of $0.25 from FY2017
Sixth consecutive rate decrease
Strategic Plan and the Budget
The City Council’s 2016-2017 Strategic Plan served
as a guide for developing this Fiscal Year 2018
budget. The City recognizes the impact that funding
decisions have on the progress of the organization’s
prioritized 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 flexible 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 use of best
practices in the industry.
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FY13 FY14 FY15 FY16 FY17 FY18
Tax Rate $17.27 $16.81 $16.71 $16.65 $16.58 $16.33
$15.70
$15.90
$16.10
$16.30
$16.50
$16.70
$16.90
$17.10
$17.30
6 Year Property Tax Rate History
Strategic Plan Priorities
This Strategic Plan intends to foster a more Inclu-
sive, Just and Sustainable Iowa City.
The following are the strategic plan priorities and
initiatives adopted by the City Council along with
the Fiscal Year 2018 budget:
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
Maintaining a Solid Financial
Foundation
Overall, the City’s financial condition remains strong
and reserve levels provide sufficient flexibility in
the event of unexpected conditions. While property
tax reform will create funding challenges in the
upcoming years, with proper planning and realistic
priority setting, the City will be in a position to
achieve our long-term goals.
Preparation of the City budget was guided by
the City’s primary financial goals:
The City continues to respond to the State’s
2013 property tax reforms. As the taxable
percentage of multifamily rental properties’
value continues to be reduced, pressure on
the budget will increase. Though the approved
budget contains funding for new initiatives,
maintains service levels, and reduces the tax
levy rate, there are revenues the City receives
that are unlikely to continue at the current level.
For instance, the City receives property tax
“backfill” payments from the State, which are
subject to the State’s budgeting process. These
payments were approximately $1.58 million in
the current fiscal year.
Consequently, there are millions of dollars in
revenue in the current fiscal year that we do not
expect to continue to receive in future years and
therefore must plan and budget accordingly.
The budget attempts to establish conditions
that will enhance the community’s fiscal
position and maintain the City’s prestigious
Moody’s Aaa bond rating. City Council’s
adopted fund balance and debt policies are all
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 needed
public improvements. Every dollar used for
an interest payment is one that is not directly
contributing to a community need.
The City’s budget document and comprehensive
annual financial report also strive to continue
to earn the Government Finance Officer
Association’s awards for excellence.
The budget strives to maintain an affordable
tax and fee environment for residents and
businesses. Sharp increases in property taxes
or fees for services can have a significant impact
on households’ monthly budgets. We pursue
efficient service delivery, review fees annually,
and maintain adequate reserves in order to
avoid severe, immediate impacts to resident and
business finances.
Healthy Enterprise Funds – Enterprise or
Business Funds refer to separate funds for
City operations intended to be self-sustaining
with fees collected for operations. Iowa City’s
Enterprise Funds include Parking, Transit,
Water, Wastewater, Refuse Collection, Landfill,
Airport, Storm Water Management, and the
Housing Authority. The City’s Enterprise funds,
comprising close to 30% of Iowa City’s budget,
are currently stable. Minor adjustments were
made to the FY2018 fees for solid waste
collection, landfill operations and parking, with
some changes not to take effect until January 1,
2018. There are no fee increases proposed for
water, sewer, storm water or transit operations.
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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.
On the expense side, General Fund operations
largely consist of personnel expenses. In the FY2018
budget, 72% of General Fund expenditures are
personnel related.
General Fund activities include the following
departments and activities:
City Council Neighborhood and
Development Services
City Clerk Parks and Recreation
City Attorney Library
City Manager Senior Center
Finance Public Works
Police Transportation Services
Fire
The General Fund FY2018 budget 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 include:
• Increases to local food initiatives
• Resources for new community gardens and a
beginning gardener program
• Micro-loan resources and funding for small
business incentives
• $40,000 historic preservation grant program
supporting reinvestment in historic districts
• Two $500,000 tax increment financing grants
over two years to restore the Englert Theatre
and elements of the Film Scene at the 1870s
Packing & Provision.
• $650,000 to Affordable Housing Fund
• $150,000 for phase two of a form-based code
zoning project
• Modest increases to PIN grants and Public Art
program
• Continued resources for the temporary winter
homeless shelter
• Continued funding for the racial equity
grant program and police department
disproportionate traffic stop analysis
• Broadened scope of Parks and Recreation
programming to expand programming for
underserved populations
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Property Taxes
65%
Other City Taxes
5%
Licenses & Permits
5%
Use of Money & Property
1%
Intergovernmental
7%
Charges for
Fees & Services
3%
Miscellaneous
12%
Other Financing Sources
2%
FY 18 General Fund
Financing Sources
Personnel
72%
Services
18%
Contingency
1%
Supplies
3%
Capital Outlay
5%
Other
Financial Uses
1%
FY18 General Fund Expenditures
FY2018 General Fund
Financing Sources
FY2018 General Fund Expenditures
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 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 fiscal year 2018 totals
$41,190,666 and the five year Capital Improvement
Plan (CIP) totals $172,052,355. The majority of CIP
projects in the five year period improve the local
transportation network and municipal utility system.
The five year program continues to reflect the City
Council’s priorities established in previous fiscal
years.
Although many projects will span multiple years,
examples of significant upcoming projects include:
2017
Gateway (Dubuque and Park Road Bridge)
Riverfront Crossings Park Development
Hickory Hill Park Redevelopment
Clinton/Burlington Intersection & Road Diet
2018
Madison/Burlington Intersection & Road Diet
Public Works Facility - Phase 1
Highway 1 Trail Extension (Sunset to Mormon
Trek)
Riverside Drive Pedestrian Tunnel and
Streetscape
Pedestrian Mall Rehabilitation
Creekside and Cardigan Park Development
2019
West Iowa Riverbank Restoration (Highway to
Benton)
Willow Creek Park Redevelopment - Phases 2
and 3
McCollister Boulevard (Gilbert to Sycamore)
First Avenue Water Main (400-500 Block)
2020
American Legion Road (Scott to Taft)
Melrose Avenue Improvements
Robert A. Lee Recreation Center Improvements
Wetherby Park Bathroom and Shelter
2021
Highway 6 Trail (Sycamore to Heinz)
Chadek Green Park Improvements
Dubuque Street Reconstruction (Iowa to
Washington)
First Avenue / Scott Boulevard Intersection
Kirkwood to Capitol Street Connector
For more information about the Iowa City budget, you
can find the full budget document and
historic budget documents at www.icgov.org/budget
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