HomeMy WebLinkAboutFY2019 Budget At-A-Glance1 2 3
Provide resources to make
significant progress in
implementing City Council’s
Strategic Plan priorities and
adopted Master Plans
Respond to property tax reform
changes while maintaining
service levels for a rapidly
growing and increasingly diverse
population
Maintain an affordable tax and
fee environment for residents and
businesses
Preparation of the City budget was guided by the City’s primary financial goals:
►Priorities determined by Strategic Plan
►Budget guided by clear financial goals
►Focused on a sustainable, multi-year financial
model
►Adopted property tax levy rate, $16.18 per $1,000
of taxable value
• Rate decrease of $.15 from FY2018
• Seventh consecutive rate decrease
Fiscal Year 2019 Budget
Summary
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 2019 (FY2019) and
provides an outlook for future years.
July 1, 2018 to June 30, 2019
City of Iowa City
FY2019 Budget
At-a-Glance
1
Promote a Strong
and Resilient Local
Economy
1
Encourage a Vibrant
and Walkable Urban
Core
2
Foster Healthy
Neighborhoods
throughout the City
3
Maintain a
Solid Financial
Foundation
4
Enhance Community
Engagement and
Intergovern-
mental Relations
5
Promote
Environmental
Sustainability
6
Advance Social
Justice and Racial
Equity
7
The current Strategic Plan is available at www.icgov.org/strategicplan
This Fiscal Year 2019 budget was prepared with a strategic plan serving as a guide. The City recognizes the
shared relationship between funding decisions and 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 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.
The following are the strategic plan priorities and initiatives that were adopted by the City Council along with the
Fiscal Year 2019 budget.
In 2017, the City adopted the Parks Master Plan and the Bicycle Master Plan. Each of these documents were
developed through significant analysis and extensive community engagement. The identified Plan actions
directly inform the Budget and Capital Plan priorities.
icgov.org/ParksRecMasterPlan | icgov.org/Project/Iowa-City-Bicycle-Master-Plan
2
Strategic Plan and the Budget
Strategic Plan
Priorities
The Council’s Strategic
Plan, updated every two
years, intends to foster a
more Inclusive, Just and
Sustainable Iowa City.
1
Continued Response to 2013 Property Tax Reforms
As the taxable percentage of multifamily rental
property values continues to be reduced, the pressure
on the budget will increase. The City’s ability to fund
new initiatives, maintain service levels, and decrease
the tax levy rate through reductions in the debt service
levy is principally due to the robust growth in taxable
valuations in recent years. This growth has offset the
losses associated with the first three years of property
tax reform implementation but it is unlikely that the
community can sustain the same level of valuation
growth through the final years of the implementation
period. State property tax backfill payments currently
total $1.68 million annually. This budget is crafted
anticipating the real eventuality that the State
Legislature will end backfill payments to balance the
State budget after years of missed revenue forecasts.
2
Sharp increases in property taxes or fees for services
can have a significant impact on families’ monthly
budgets. 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 business development and expansion. In FY2019,
there was a water rate fee increase of five percent.
Maintaining a Moderate Tax and
Fee Environment for Residents
and Businesses
Planning for a Solid and Sustainable Future
While responding to the Council’s Strategic Plan will
always remain a top priority, we must also consider
the additional demands being placed on our core
municipal services due to large population growth.
This budget provides resources to meet some of these
increased demands through additional staffing and
efficiency measures. Some examples include: two
new sworn police positions, a waste and recycling
collection route optimization study, installation of
automatic locks on park restroom facilities, and a
comprehensive analysis of transit routes and hours of
operation.
The City’s financial health remains strong and our
reserve levels provide sufficient flexibility in the event of
unexpected conditions. It should not be assumed that
the current level of growth will be sustained in the future
years. Any softening of growth will place more pressure
on the City’s budget as tax reform implementation will
continue for the next several years. For this reason, it
is imperative that the City continue to push forward
with cautious budgeting and strong reserves that
can help soften the blow of sudden revenue losses or
expenditure jumps. With this approach, the City will be
positioned to achieve long-term goals.
3
3
*Property taxes based on house value of $100,000
*
General Fund Highlights
4
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 pie
chart to the right.
On the expense side, General Fund operations largely consist
of personnel expenses. In the FY2019 budget, 72% of General
Fund expenditures are personnel related. A view of General
Fund expenditures by category can be viewed in the pie
chart below.
The General Fund FY2019 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 include:
►Increases to local food initiatives
►Expands community garden program to three
new locations
►Continues to provide micro-loan resources and
funding for small business incentives
►Provides for a city-wide retail attraction consultant
►Continues the historic preservation grant program
aimed at facilitating reinvestment in historic districts
►Provides for two $500,000 tax increment financing
grants over two years to restore the Englert Theatre
and elements of the FilmScene building at the
1870s Packing & Provision site.
►Gives $1,000,000 to Affordable Housing Fund
►Provides $385,000 for the form based code
development project
►Provides funding for the capital contribution to the
County Behavioral Access Center
►Increased funding for the racial equity grant
program and disproportionate traffic stop analysis
►Provides funding for the Climate Action Plan
implementation
►Funds two police officer positions allowing for
expansion of community policing and code
enforcement efforts
General Fund activities include the following
departments and activities:
City Council
City Clerk
City Attorney
City Manager
Finance
Police
Fire
Neighborhood & Development Services
Parks & Recreation
Library
Senior Center
Public Works
Transportation Services
Administration
• Melrose Avenue Improvements
• Mercer Park Pool Improvements
• Wetherby Park Bathroom and Shelter
2021
• Highway 6 Trail (Sycamore to Heinz)
• Chadek Green Park Improvements
• Dubuque Street Reconstruction (Iowa to
Washington)
• Iowa River Trail (Benton to Hwy 6)
2022
• Kirkwood to Capitol Street Connector
• Transit/Equipment Facility Relocation
• Upper and Lower City Park Shelters and Restroom
• Court Street Reconstruction
2018
• Clinton/Burlington Intersection & Road Diet
• Public Works Facility (Phase 1)
• Pedestrian Mall Rehabilitation
• Creekside and Cardigan Park Development
• Climate Action and Adaptation Plan
2019
• Willow Creek Park Redevelopment (Phases 2 and 3)
• Highway 1 Trail Extension (Sunset to Mormon Trek)
• McCollister Boulevard (Gilbert to Sycamore)
• First Avenue Water Main (400-500 Block)
• Behavioral Access Center Capital Funds
2020
• American Legion Road (Scott to Taft)
Capital Improvement Plan (CIP) Highlights
The capital budget for fiscal year 2019 totals $28,553,570 and the five-year Capital Improvement Plan (CIP) totals
$159,796,096.
Many of the 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,
including implementation of the Parks and Bicycle Master Plans. Summaries of the Parks and Bicycle Master Plan
projects are provided on pages 5 and 6.
Examples of other significant projects planned for the coming calendar years include:
*Although projects are planned to begin in the listed year, many will span multiple years
For more information about the Iowa City budget, you can find the full budget document and historical budget documents
at www.icgov.org/budget
Debt Service Fund Highlights
5
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 $64.6 million at FY2019 year end, which
is 1.1% of total valuations and well below the State of Iowa
threshold. Adherence to responsible debt management is
attractive to rating agencies such as Moody’s, and ultimately,
saves our taxpayers money.
Iowa City is carrying debt equal to roughly 21.9% of the
allowable level. When the City has less debt obligations, it is easier to borrow at lower rates of interest.
The chart above provides a historical view of Iowa City’s debt in relation to the allowable debt level.
Hickory Hill-Conklin Park RedevelopmentR4365
Glendale Park Shelter & PlaygroundR4366
Oak Grove Park R4132
Ryerson Park R4132
Riverfront Crossings Park Phases 1, 2 & 3R4185
Creekside Park RedevelopmentR4341
Cardigan Park DevelopmentR4345
IC Kickers Park Soccer Field AdditionR4355
Villa Park Playground & Path R4361
Lower City Park Adventure PlaygroundR4356
West District New Park DevelopmentR4346
Fair Meadows PlaygroundR4348
Wetherby Shelter & PlaygroundR4349
Scott Park Shelter & PlaygroundR4364
Napoleon PlaygroundR4367
Chadek Green Park DevelopmentR4350
Kiwanis Playground & ShelterR4359
Whispering Meadows Shelter & PlaygroundR4357
Lower City Park SheltersR4358
Napoleon Park Softball Fields RenovationR4362
Upper City Park SheltersR4363
Court Hill Shelter & PlaygroundR4368
Mercer Park R4132
Willow Creek Park Redevelopment R4322
Happy Hollow Park R4132
College Green Park R4132
Brooklyn Park R4132
Reno Street Park R4132
Pheasant Hill R4132
Hunter's Run Park R4132
Harlocke Hill R4132
Black Spring Park R4132
Crandic Park R4132
Thornberry Park R4132
Tower Court R4132
Highland Park R4132
20192018 2020 2021 2022 CIP Plan Year
Park
ImprovementProjects
Accessibility Improvements
2018 2019
2022
2020 2021
Master Plan Year
Bike lane
Buered bike lane
4 lane to 3 lane conversion
Bicycle boulevard
Sidepath
Project Category
Completed
Planned Construction 2018
Planned Construction 2019
Project Status
MYRTLE & RIVERSIDE
Intersection & Connection to IRTS3933
WILLOW CREEK RD Neighborhood ConnectorR4225
S. SYCAMORE Restriping to Add Bike LanesS3827
PRENTISS & BOWERY S3827
DEWEY/SUMMIT/BROWN S3942
GREENWOOD & MYRTLE S3933
SANDUSKY/TAYLOR Burns to KeokukS3827
COLLEGE ST S3827
WETHERBY S3827
LAKESIDE S3827
GOVERNOR ST Brown to BurlingtonS3942
MARKET & JEFFERSONS3827
DODGE ST Summit to BurlingtonS3827
CAMP CARDINAL S3827
AMERICAN LEGION Scott to TaftS3854
MCCOLLISTER Gilbert to SycamoreS3934
DODGE ST Burlington to BoweryS3827
GOVERNOR ST Burlington to BoweryS3827
SOUTHGATE Keokuk to GilbertS3827
FIRST AVE S3871
MORMON TREK Melrose to WestsideS3868
MADISON ST Market to CourtS3827
CLINTON ST Church to BentonS3827
GILBERT STS3827
KEOKUK Road Diet - Hwy 6 to SanduskyS3827
HIGHWAY 6 Heinz to SycamoreR4227
AMERICAN LEGION Scott to TaftS3854
MCCOLLISTER Gilbert to SycamoreS3934
HIGHWAY 1 Sidepath TrailR4225
20182017 2019 2020 2021 2022 CIP Plan Year
2019-2022 Master Plan
2017-2018 Master Plan
Bike
Master PlanProjects
How is the Annual City Budget Developed?
Iowa City’s financial planning and budget cycle takes nearly a full year to complete.
Although the activities below focus specifically on the budget development, the com-
munity has a continued role in this process through their involvement in City programs
and plan creation. Feedback and comments received from our community throughout
the year directly shape the budget requests submitted by departments and elected
officials. See below for a summary of how the City budget is created and adopted.
►City Council holds an initial work session to discuss budget goals and identify major initiatives,
projects, or programs that they would like to see in the next year’s budget
►All City divisions review performance measures and goals as well as their alignment with the City
Council’s Strategic Plan
►Capital Improvement Program (CIP) needs, such as road, park, and water system improvements, are
assessed and submitted by all City Departments
►A Capital Improvement Program review committee evaluates and amends the CIP projects
submitted in September and produces a preliminary and final Five-Year CIP proposal
►Departments review fiscal policies and priorities, instruct staff on budget prep, and begin submitting
amendments for the present fiscal year along with budget requests for the next fiscal year
►City budget team meets with each department to discuss their fiscal year requests, prior year revised
budgets, performance measures, and goals
►Finance Department reviews and updates long range City financial plans, identifies significant
budget issues and prepares summaries
►Budget team finalizes department fiscal year budget requests, current fiscal year revised budgets,
Five-Year CIP, division goals and performance measures, and long range financial plans
►A preliminary City budget document including the Three-Year Financial Plan, Five-Year CIP, and
division goals and performance measures is distributed to City Council and the public for review
►City Manager and all departments present City Council and the public an overview on budget
process, the fiscal environment, and the proposed budget and Capital Improvement Program
►A public hearing is held on the proposed budget and the prior fiscal year’s revised budget
►City budget is made available for public review online and in-person at City Hall and the Iowa City
Public Library
►Following public hearings, City Council approves financial documents
►By Iowa State law, the adopted budget and prior fiscal year revised budget must be certified with
the Johnson County Auditor by March 15
►City Council sets hearings for service fee and rate changes for the upcoming fiscal year, if any are
proposed in the approved budget
►New fiscal year begins annually on July 1
August
September
October
November
December
January
February
March
July
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