HomeMy WebLinkAboutFY2021 Budget At-a-Glance
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 Rate
1
City of Iowa City
FY2021 Budget
At-a-Glance
July 1, 2020 to June 30, 2021
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 2021 (FY2021) and provides an outlook for future years.
Preparation of the City budget was guided by the City’s primary financial goals:
1
Provide resources to make
significant progress in implementing
City Council’s Strategic Plan priorities
and adopted Master Plans
2
Balance expanding service needs
and community priorities with
declining taxable value of
apartment buildings
3
Consider the overall effect of
changes on household budgets
including taxes, fees, and School
District/County needs
Fiscal Year 2021 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, $15.77 per $1,000
of taxable value
• Rate decrease of $.06 from FY2020
• Ninth consecutive rate decrease
Taxable Value and Levy Rate
Taxable Value (in 1000’s)Levy Rate
2
1Strategic Plan and the Budget
As in prior years, the Fiscal Year 2021 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. Respond to climate crisis and implement Climate Action and Adaptation Plan
2. Provide resources to make significant progress in implementing City Council’s other Strategic Plan priorities and
adopted Master Plans
3. Balance expanding service needs and community priorities with declining taxable value of apartment buildings
4. Consider the overall effect of changes on household budgets including taxes, fees, and School
District/County needs
Strategic Plan Priorities
The Council’s Strategic Plan, updated every
two years, intends to foster a more Inclusive,
Just and Sustainable Iowa City by prioritizing
the physical, mental and economic well-being
of all residents.
The current Strategic Plan is available at
www.icgov.org/strategicplan.
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
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 $15.77,
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 11.6%
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.
The following bar chart illustrates the estimated overall financial impact of tax and fee changes to
the average household in Iowa City.With a lower property tax rate, a 5% increase in the water
rate,and a $0.90 increase in curbside recycling, it is estimated that a household with $100,000
assessed home value will pay approximately the same in taxes and fees for basic City services
in fiscal year 2021 as in fiscal year 2020.
For this table, the $100,000 assessed value is used so that readers may easily calculate tax
payments based on their own home value.
Perhaps the most significant property tax reform provision for Iowa City’s budget is the
reclassification of multifamily residential properties, none of which is subject to state backfill
payments. Prior to assessment year 2013, multifamily properties were classified as commercial
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Property Taxes $928 $922 $930 $900 $901 $869
Stormwater $42 $54 $54 $54 $60 $60
Refuse $191 $191 $205 $229 $229 $240
Sewer - 800 cubic feet $433 $433 $433 $433 $433 $433
Water-- 800 cubic feet $362 $362 $362 $380 $399 $419
Total $1,955 $1,962 $1,984 $1,996 $2,022 $2,021
Percent Change 1.9% 0.3% 1.1% 0.6% 1.3% -0.1%
-$500
$0
$500
$1,000
$1,500
$2,000
$2,500
Annual Financial Impact to Residential Households
18
3
2Continued Response to 2013 Property Tax Reforms
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 $1.9
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.3
Maintaining a Moderate Tax and
Fee Environment for Residents
and Businesses
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 FY2021, there was a water rate fee increase
of five percent and a $0.90 increase in curbside recycling.
Annual Financial Impact to Residential Households
*Property taxes based on house value of $100,000
Strategic Plan Goals Prioritized by Residents for FY2020 Budget
This year’s City “Chip In” budget engagement actions
included a community-wide survey and onsite activities
at Wetherby Park and a day at the Iowa City Farmer’s
Market. The survey, which gathered over 850 responses,
and engagement activities were intended to get residents
sharing which of the City Council’s Strategic Plan goals and
corresponding initiatives are most important. The survey
and in-person activity mirrored the Chip In actions from
the prior year and asked residents to again choose up
to ten issues that were most vital for the City to support.
The top five issues for participants included (ranked
order) streets and infrastructure, public transportation
improvements, affordable housing, building a livable
community for all, and support for climate action
initiatives. The City’s budget team analyzed this survey
data and ensured the City’s FY2021 budget incorporated
significant supports for these and other priorities.
A visual of Chip In survey replies to the prompt: “use a single word to describe what will
make Iowa City a more inclusive, just, and sustainable community in the next five years.”
Personnel
74%
Services
18%Contingency
1%
Supplies
3%
Capital Outlay
4%
Other Financial Uses
0%
General Fund Expenditures by Category
excludes transfers
Property Taxes
67%Other City Taxes
4%
Licenses & Permits
5%
Use of Money &
Property
2%
Intergovernmental
7%
Charges for Fees &
Services
2%
Miscellaneous
11%
Other Financing
Sources
2%
FY2020 Revenues & Other Financing Sources
excludes transfers
4
General Fund Highlights
The General Fund is the City’s primary operating fund and represents
approximately 32% of the total budget. A breakdown of revenue
sources is provided in the chart to the right.
General Fund Revenues
& Other Financing Sources
excludes transfers
On the expense side, General Fund operations largely consist of
personnel expenses. In the FY2021 budget, 74% of General Fund
expenditures are personnel related. A breakdown of expenditures by
category is provided in the chart below.
General Fund Expenditures by Category
excludes transfers
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 FY2021 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 tree management and tree
plantings including staffing, equipment and contracted
plantings
►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 funding to support the expansion of Kirkwood
Community College’s English Language Learning
Program
►Gives $1,000,000 to Affordable Housing Fund
►Provides funding to complete fair housing testing
to ensure compliance with federal, state, and local
discrimination laws
►Increases the City’s minimum wage to $13.25/hour
effective July 1, 2020 for hourly staff with a goal of
reaching $15/hour by July 1, 2021
►Funds Climate Action Plan Implementation with a new
Division, staff position, use of the Emergency Levy, and
$50,000 in community grants
FY13 FY14 FY15 FY16 FY17 FY18 FY19 *FY20 *FY21 *FY22
Debt (millions)61 67 62 58 67 67 67 68 68 69
% of Val 1.33% 1.44% 1.28% 1.17% 1.25% 1.22% 1.14% 1.11% 0.99% 0.97%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
52
54
56
58
60
62
64
66
68
70
Millions of Dollars ($)General Bonded Debt Outstanding
and Percent of Total Valuation
5
Debt Service Fund Highlights
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.
FY2021 budget anticipates outstanding debt of $67.8
million at FY2021 year end. This equates to 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 FY2021 by
$0.40 from the FY2020 levy.
►Total outstanding debt is trending downward - FY2021
anticipates a decrease of $0.5 million from FY2020 in
total outstanding debt by year end.
►Future general obligation bond issues, including 2% for
bond issuance costs, are estimated at $12.24 million in
both 2020 and 2021.
General Bonded Debt Outstanding
and Percent of Total Valuation
*Budgeted and projected amounts
6
Capital Improvement Plan (CIP) Highlights
$29,540,120 Capital Budget
FY2021
$168,095,552 Five-year Capital
Improvement Plan (CIP)
2020-2024
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:
2020
►Bike Master Plan implementation (every year of the CIP)
►McCollister Boulevard extension
►Wetherby, Fairmeadows, Scott and Napoleon Park
improvements
►Enhanced annual street resurfacing
►American Legion Road reconstruction
►First Avenue/Scott Blvd improvements
►Lower Muscatine Stormwater Improvements
►Mercer Pool improvements
2021
►Benton Street rehabilitation
►Rochester Avenue reconstruction
►Melrose Avenue improvements
►Curbside collections automated truck
►Smart parking meter replacements
►Highway 6 Trail extension
►Glendale Park improvements
►Gilbert Street Bridge replacement
2022
►Chadek Green, Court Hill, Kiwanis Park improvements
►Library furnishings replacement
►Landfill building replacement
►Mercer Ball Diamond improvements
►Court Street reconstruction
►Transit facility relocation
►Market/Jefferson two-way conversion
2023
►Palisades and Stone Bridge Park development
►Lower City Park restrooms and shelters
►Hickory Hill Park shelters and restroom
►Happy Hollow and Ped Mall playground
►Dubuque Street reconstruction
►Rohret South Sewer
►Wastewater Digester Complex rehabilitation
►Kirkwood to Capitol Street connection
2024
►Dodge Street reconstruction
►Park Road reconstruction
►North Gilbert Street reconstruction
►South Side recycling site
►Terrell Mill Park redevelopment
►Whispering Meadows and Upper City Park shelters
and playgrounds
►Highway 6 water main replacement
*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
Hickory Hill-Conklin Park RedevelopmentR4365
Palisades/Stone Bridge Park DevelopmentR4346
Lower City Park SheltersR4358
Hunter's Run Park DevelopmentR4375
Happy Hollow PlaygroundR4371
Ped Mall PlaygroundR4383
Whispering Meadows Shelter & PlaygroundR4357
Upper City Park SheltersR4363
N. Market Square PlaygroundR4378
Terrell Mill Park RedevelopmentR4372
Glendale Park Shelter & PlaygroundR4366
Ryerson Park R4132
Harlocke Hill R4132
Napoleon PlaygroundR4367
Oak Grove Park R4132
Fair Meadows PlaygroundR4348
Wetherby Shelter & PlaygroundR4349
Scott Park Shelter & PlaygroundR4364
Brookland Park R4132
Hunter's Run Park R4132
Black Spring Park R4132
Mercer Park Ball Diamond ImprovementR4374
Chadek Green Park DevelopmentR4350
Kiwanis Playground & ShelterR4359
Napoleon Park Softball Fields RenovationR4362
Court Hill Shelter & PlaygroundR4368
Crandic Park R4132
Reno Street Park RenovationR4379
Thornberry Park R4132
Under Construction Completed Projects
IC Kickers Park Soccer Field AdditionR4355
Lower City Park Adventure PlaygroundR4356
Willow Creek Park Redevelopment R4322
Highland Park R4132
Pheasant Hill R4132
Mercer Park R4132
Creekside Park RedevelopmentR4341
Riverfront Crossings Park Phase 3R4185
Riverfront Crossings Park Phases 1 & 2R4185
Cardigan Park DevelopmentR4345
Happy Hollow Park R4132
R4361 Villa Park Playground & Path
Tower Court R4132
College Green Park R4132
2020 2021 2022 2023 2024
CIP Plan Year
Park
ImprovementProjects
Accessibility Improvements
2018 2020 20212019
2022 20242023
Master Plan Year
Last updated March 2020
Bike lane
Buered bike lane
4 lane to 3 lane conversion
Bicycle boulevard
Sidepath
Project Category
Planned Construction 2020
Completed
Construction Status
GILBERT ST Market to McCollisterS3827
MARKET & JEFFERSONS3953
DODGE ST N. Summit to BurlingtonS3827
DODGE ST Burlington to KirkwoodS3827
MCCOLLISTER Gilbert to SycamoreS3934
S3854 AMERICAN LEGION Scott to Taft
R4376 HIGHWAY 6 Fairmeadows to Heinz
BENTON Greenwood to Mormon TrekS3947
SUNSET Benton to Hwy 1S3827
KEOKUK Kirkwood to Hwy 6
KIRKWOOD
Clinton to Lower Muscatine
LOWER MUSCATINE
S3827
S3827
S3827
WETHERBY
LAKESIDE
MADISON ST Market to Court
S3827
S3827
S3827
MYRTLE & RIVERSIDE
Intersection & Connection to IRT
S. SYCAMORE Restriping to Add Bike Lanes
FIRST AVE
MORMON TREK Melrose to Westside
CLINTON ST Church to Benton
S3933
S3827
S3871
S3868
S3827
DEWEY/SUMMIT/BROWN
CAMP CARDINAL
GOVERNOR ST Brown to Burlington
S3942
S3827
S3942
S3933
S3827
S3827
R4225
R4225
GREENWOOD & MYRTLE
PRENTISS & BOWERY
GOVERNOR ST Burlington to Bowery
HIGHWAY 1 Sidepath Trail
WILLOW CREEK RD Neighborhood Connector
FOSTER RD
N. Dubuque to Prairie Du Chien
SANDUSKY/TAYLOR Burns to Keokuk
KEOKUK Hwy 6 to Sandusky
SOUTHGATE Keokuk to Gilbert
S3827
S3827
S3827
2020201920182017 2021 2022 2023 2024
CIP Plan Year
Near-Term Projects
Immediate-Term Projects
Bike
Master PlanProjects
Last updated March 2020
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.
August ►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
September ►Capital Improvement Program (CIP) needs, such as road, park, and water system improvements, are
assessed and submitted by all City Departments
October ►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
November ►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
December ►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
January ►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
February ►City budget is made available for public review online and in-person at City Hall and the Iowa City Public Library
►A public hearing is held on the proposed maximum property tax levy for certain levies. Following public
hearings, City Council approves Maximum Property Tax Levy Resolution for certain levies.
March ►A public hearing is held on the proposed budget and the prior fiscal year’s revised budget
►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 31
►City Council sets hearings for service fee and rate changes for the upcoming fiscal year, if any are
proposed in the approved budget
July ►New fiscal year begins annually on July 1
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