HomeMy WebLinkAboutFY2020 Budget At-a-GlanceFiscal Year 2020 Budget
Summary
The budget is one of the most important documents the City prepares because it
identifies what services are provided and how they are financed. This Budget At-a-
Glance document summarizes the City’s budgeting methods, highlights revenues
and expenses for Fiscal Year 2020 (FY2020) and provides an outlook for future years.
July 1, 2019 to June 30, 2020
City of Iowa City
FY2020 Budget
At-a-Glance
►Priorities determined by Strategic Plan
►Budget guided by clear financial goals
►Focused on a sustainable, multi-year financial model
►Adopted property tax levy rate, $15.83 per $1,000
of taxable value
• Rate decrease of $.35 from FY2019
• Eighth consecutive rate decrease
1 2 3
Provide resources to make
significant progress in implementing
City Council’s Strategic Plan priorities
and adopted Master Plans
Balance expanding service needs
and community priorities with
declining taxable value of
apartment buildings
Consider the overall effect of
changes on household budgets
including taxes, fees, and School
District/County needs
Preparation of the City budget was guided by the City’s primary financial goals:
1
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Tax Value (millions)$2,758 $2,848 $2,960 $3,036 $3,137 $3,183 $3,421 $3,543 $3,745 $3,923
Val % Change 2.95%3.27%3.93%2.56%3.32%1.46%7.50%3.55%5.72%4.74%
Ptax Rate 17.757 17.842 17.269 16.805 16.705 16.651 16.583 16.333 16.183 15.833
Rate % change -0.54%0.48%-3.21%-2.69%-0.60%-0.32%-0.41%-1.51%-0.92%-2.16%
15
15.5
16
16.5
17
17.5
18
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Levy RateTaxable Value (in 1000's)Taxable Value and Levy RateTaxable Value and Levy Rate
Taxable Value (in 1000’s)Levy Rate
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
As in prior years, the Fiscal Year 2020 budget was prepared with strategic and master plans 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.
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. Master Plan progress is regularly shared in the Strategic Plan Report.
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 Sustain-
able Iowa City. The following
priorities were adopted by
City Council in their 2018-
2019 Strategic Plan.
1
As the taxable percentage of multifamily rental property
values continues to be reduced from property tax reform,
pressure on the City’s budget will increase. State property
tax backfill payments, which reimburses the City for impacts
attributed to tax reform, currently totals $1.54 million
annually.
Iowa City has taken steps to manage the impacts of tax
reform, but maintaining service levels will require prudent
decisions over the next several years as tax reform continues
to be phased in through 2024.
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 several years of
strong growth in taxable valuations.
2Continued Response to 2013 Property Tax Reforms
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 FY2020, there was a water rate fee increase of
five percent and Stormwater increase of $0.50 per month.
Maintaining a Moderate Tax and
Fee Environment for Residents
and Businesses
Strategic Plan Goals Prioritized by Residents for FY2020 Budget
There is a direct connection between community partici-
pation and the projects, programs, and services which end
up prioritized in the City’s budget and strategic plan. The City
held a new event called “Chip In” at City Hall in August 2018.
‘Chip In’ engaged approximately fifty residents in priori-
tizing strategic plan goals and what efforts should be placed
front and center in the City budget. Participants voted on
the strategic plan goals most important to them and helped
identify projects and programs that should receive City
funds.
To facilitate alternative methods of participation, residents
were also able to take a ‘Chip In’ survey closely aligned with
the in-person engagement activities. Nearly 600 survey res-
ponses were received during the week-long survey period.
3
3
*
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
Property Taxes $909 $928 $922 $930 $900 $901
Stormwater $42 $42 $54 $54 $54 $60
Refuse $191 $191 $191 $205 $229 $229
Sewer - 800 cubic feet $433 $433 $433 $433 $433 $433
Water-- 800 cubic feet $344 $362 $362 $362 $380 $399
Total $1,919 $1,955 $1,962 $1,984 $1,996 $2,022
Percent Change 2.3%1.9%0.3%1.1%0.6%1.3%
$0
$500
$1,000
$1,500
$2,000
$2,500
Annual Financial Impact to Residential Households
*Property taxes based on house value of $100,000
Annual Financial Impact to Residential Households
Support organizations helping those withtrauma and crisis
Support reduction in consumption of goodsand minimize solid waste
Historic preservation
Support small business and entrepreneurs
Build and promote a livable community forall people
Support education and workforce programs
Affordable housing needs
Encourage equitable and sustainableeconomic growth
Public transportation improvements (bike,bus, pedestrian, other)
Streets and infrastructure
Top Ten areas of focus selected by online and in-person Chip In Participants Top Ten areas of focus selected by online and in-person Chip In Participants
General Fund Highlights
4
The General Fund FY2020 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 funding for roadway repairs and enhances
equipment for Streets crews
►Gives $75,000 for racial equity grant program
►Funds accessibility improvements, including updates
to sidewalks, City parks, and facilities, installation of
hearing augmentation systems, and funding for the
annual community ADA Celebration
►Continues to provide micro-loan resources and
funding for small business incentives
►Continues the historic preservation grant program
aimed at facilitating reinvestment in historic districts
►Provides for the second installment of a $500,000
tax increment financing grant 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 funding for the capital contribution to the
County Behavioral Access Center
►Allows for waiving child and teen library material fines
►Increases the City’s minimum wage to $11.50 effective
July 1, 2019 for hourly staff with a goal of reaching $15/
hour by July 1, 2021
►Funds Climate Action Plan implementation, including
staff positions in Government Buildings, Stormwater,
and Resource Management, funding for multiple solar
installation projects, and $25,000 in community grants
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
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 chart to
the right.
On the expense side, General Fund operations largely consist of
personnel expenses. In the FY2020 budget, 74% of General Fund
expenditures are personnel related. A view of General Fund
expenditures by category can be viewed in the chart below. Property Taxes67%Other City Taxes5%
Licenses & Permits5%
Use of Money & Property2%
Intergovernmental7%
Charges for Fees & Services2%Miscellaneous11%
Other Financing Sources1%
FY2019 Revenues & Other Financing Sources
excludes transfersFY2020 Revenues & Other Financing Sources excludes transfers
Personnel74%
Services19%
Contingency1%
Supplies3%
Capital Outlay3%
Other Financial Uses0%
General Fund Expenditures by Category
excludes transfersGeneral Fund Expenditures by Categoryexcludes transfers
Capital Improvement Plan (CIP) Highlights
Many of the CIP projects planned are in response to
feedback from residents desiring more funding for road
improvements and transportation needs. The five-year
program continues to reflect the City Council’s priorities established in previous fiscal years, including implementation
of master plans. Summaries of the Parks and Bicycle Master Plan projects are provided on the following pages.
Examples of other significant projects planned for the coming calendar years include:
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
Reduction in the debt service levy means that Iowa City
spends less money on paying interest on borrowed
funds. The City has been in a position to reduce the
debt levy over the last decade because it has less debt
obligations than it did years ago.
Communities who adhere to responsible debt policy
and have limited debt are attractive to ratings agencies
like Moody’s. A good bond rating, like Iowa City’s Aaa
rating, makes it easier to borrow at lower rates of
interest, ultimately saving thousands or millions of
taxpayer dollars over the life of a bond.
The FY2020 budget anticipates outstanding debt of $47.6
million at FY2020 year end. This equates to 1.1% of total
valuations, well below the State of Iowa threshold.
►The State of Iowa gives cities the authority to establish
a debt service fund and levy taxes to pay for principal
and interest on general obligation bonds issued by
their city.
►Iowa City reduced its debt service levy for FY2020 by
$0.25 from the FY2019 levy.
►Total outstanding debt is trending downward -
FY2020 anticipates a decrease of $7.3 million from
FY2019 in total outstanding debt by year end.
►Future general obligation bond issues, including 2%
for bond issuance costs, are estimated at $13.323
million in 2019 and $10.819 million in 2020.
• Chadek Green Park Improvements
• Iowa River Trail (Benton to Hwy 6)
• Rochester Avenue Reconstruction
• Bradford Drive Water Main
• Dubuque Street Reconstruction (Iowa to
Washington)
• Transit/Equipment Facility Relocation
• Lower City Park Shelters and Restroom
• Court Street Reconstruction
• Kirkwood to Capitol Street Connector
• Dodge Street Reconstruction
• Hunter’s Run Park Playground and Shelter
• Public Works Facility (Phase 1)
• Pedestrian Mall Rehabilitation (Phase 2)
• Creekside Park Development
• Climate Action and Adaptation Plan
• Lower City Park Adventure Playground
• Willow Creek Park Redevelopment (Phases 2 & 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
• American Legion Road (Scott to Taft)
• Melrose Avenue Improvements
• Mercer Park Pool Improvements
• Wetherby Park Restroom and Shelter
• Eastside Recycling Center Improvements
*Although projects are planned to begin in the listed
year, many will span multiple years
◄2021
◄2022
◄2023
◄2019
◄2020
$31,363,282Capital Budget
FY2020
Five-year Capital Improvement
Plan (CIP) 2019-2023 $163,357,501
Hickory Hill-Conklin Park RedevelopmentR4365
Glendale Park Shelter & PlaygroundR4366
Oak Grove Park R4132
Ryerson Park R4132
Lower City Park Adventure PlaygroundR4356
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
Napoleon Park Softball Fields RenovationR4362
Lower City Park SheltersR4358
Upper City Park SheltersR4363
Court Hill Shelter & PlaygroundR4368
Willow Creek Park Redevelopment R4322
College Green Park R4132
Brookland Park R4132
Reno Street Park R4132
Hunter's Run Park R4132
Hunter's Run Park DevelopmentR4375
Happy Hollow PlaygroundR4371
Terrell Mill Park RedevelopmentR4372
Harlocke Hill R4132
Black Spring Park R4132
Crandic Park R4132
Thornberry Park R4132
Under Construction
Highland Park R4132
Pheasant Hill R4132
Mercer Park R4132IC Kickers Park Soccer Field AdditionR4355
Creekside Park RedevelopmentR4341
Riverfront Crossings Park Phase 3R4185
Riverfront Crossings Park Phases 1 & 2R4185
Completed Projects
Cardigan Park DevelopmentR4345
Happy Hollow Park R4132
R4361 Villa Park Playground & Path Tower Court R4132
20202019 2021 2022 2023 CIP Plan Year
Park
ImprovementProjects
Accessibility Improvements
2018 2019
2022
2020 2021
2023
Master Plan Year
Bike lane
Buered bike lane
4 lane to 3 lane conversion
Bicycle boulevard
Sidepath
Project Category
Completed
Planned Construction 2019
Construction Status
MYRTLE & RIVERSIDEIntersection & Connection to IRTS3933
S. SYCAMORE Restriping to Add Bike LanesS3827
GREENWOOD & MYRTLE S3933
WETHERBY S3827
LAKESIDE S3827
FIRST AVE S3871
MORMON TREK Melrose to WestsideS3868
MADISON ST Market to CourtS3827
CLINTON ST Church to BentonS3827
SUNSET Benton to Hwy 1S3827
DODGE ST Summit to BurlingtonS3827
GILBERT ST Market to McCollisterS3827
AMERICAN LEGION Scott to TaftS3854
BENTON Greenwood to Mormon TrekS3947
MARKET & JEFFERSONS3953
DODGE ST Burlington to BoweryS3827
MCCOLLISTER Gilbert to SycamoreS3934
WILLOW CREEK RD Neighborhood ConnectorR4225
PRENTISS & BOWERY S3827
GOVERNOR ST Burlington to BoweryS3827
HIGHWAY 1 Sidepath TrailR4225
FOSTER RD
SANDUSKY/TAYLOR Burns to KeokukS3827
SOUTHGATE Keokuk to GilbertS3827
KEOKUK Hwy 6 to SanduskyS3827
DEWEY/SUMMIT/BROWN S3942
GOVERNOR ST Brown to BurlingtonS3942
CAMP CARDINAL S3827
20182017 2019 2020 2021 2022 2023 CIP Plan Year
Near-Term Projects
Immediate-Term Projects
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 community 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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