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Budget Highlights Public Information Meeting 2/19/14 $ 89.8 million

Fiscal Year 2014/15. Budget Highlights Public Information Meeting 2/19/14 $ 89.8 million. FY 2014/15 Budget in Brief:. Maintains the levy rate at $12.55 Funds final agreements with all bargaining units Within Mayor & Council’s guidelines

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Budget Highlights Public Information Meeting 2/19/14 $ 89.8 million

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  1. Fiscal Year 2014/15 Budget Highlights Public Information Meeting 2/19/14 $ 89.8 million

  2. FY 2014/15 Budget in Brief: • Maintains the levy rate at $12.55 • Funds final agreements with all bargaining units • Within Mayor & Council’s guidelines • Reduces reliance on Gaming Revenue to supplement operating budgets. • Increases funding for one-time capital projects. • Increases available fund balance over the next 5 years. • Increases available fund balance in Sales Tax over the next 5 years • Provides funding for additional full-time positions • Funds an aggressive capital improvement program

  3. FY 2014/15 Budget “Stays the course” and “follows the financial plan” we established several years ago and continues our history of: • Conservative spending • Maintaining healthy cash reserves • Strong fiscal planning and adherence to fiscal policies We continue to realize: • Stable revenue streams • Significant levy growth available under $8.10 and ability to implement benefit levies.

  4. In an effort to continue offering Premier Services to our Citizens, we seek balance in Three Key Areas: First Key Area: We continue to recognize the need for human resources and operating budgets to grow as the city grows • For the first time in several years, we are recommending additional full-time positions for an Administrative Assistant in HR/Legal and Equipment Operators in Storm Water and Palmer Hills • We will continue to thoroughly review vacant positions in an effort to downsize, through restructuring and realignment of duties where possible. • Operating budgets reflect only marginal increases • Under utilized and/or outdated programs and services continue to be reviewed for future funding

  5. Seeking Balance in Three Key Areas: Second Key Area: We continue to fund an aggressive CIP program to maintain/upgrade our existing infrastructure and support our growing community with quality amenities. • FY 14/15 funds $15.4 million of capital projects and maintains the debt levy at $5.00 per $1,000 of taxable value • As a growing community we realize that financing an aggressive CIP program equates to having a higher debt levy rate and corresponding debt margin ratio than many comparable cities. • The 5-year plan does however, decrease our debt margin ratio by 8% to just under 70% by the end of FY 18/19, while still allocating significant future tax dollars to support projects for our growing community. • We recognize the ongoing flexibility available to the City in reducing the debt levy and corresponding CIP projects if needed to balance future operating budgets.

  6. Seeking Balance in Three Key Areas: Third Key Area: We remain committed to making the difficult decision of increasing revenues through taxes and user fees “incrementally”,if needed, to balance our budget annually as costs increase. • We do not endorse deferring or holding off on raising fees and taxes only to later “spike” the rates to balance the budget • This year we are recommending maintaining the levy rate at $12.55. However, the impact will be: • 2.87% reduction to existing commercial property • Offset by a 2.68% increase on existing residential property (Direct result of the NEW 5% rollback on commercial property) • The budget as proposed, also reflects marginal, “planned” increases in user fees for Garbage/Recycling, Storm Water, Sewer, LFC and Palmer Hills. • IMPACT: The City’s overall cost of services including property taxes, sewer and storm water fees and solid waste fees remains the 3rd lowest among our sample of 30 Iowa cities with populations of 10,000 or more.

  7. Budget Highlights - FY 2014/15 Budget: 1) Maintain the City’s Levy Rate at $12.55 • Bettendorf is one of a few Iowa cities with a General Fund levy below $8.10. This allows for future growth capacity of 48%, equating to nearly $5 million of potential property taxes. • In addition, the City has the ability to levy taxes for: • IPERS & FICA ($1.54 million) • Emergency levy of $0.27 if needed. ($504,000)

  8. FY 14/15 Property Tax Impact ofMaintaining the $12.55 Levy of City Taxes: • Direct result of the NEW 5% rollback on commercial property

  9. Property Tax Reform Shifts Tax Burden to Residential • Anticipate the trend of shifting tax burden to residential property owners to continue over the next several years.

  10. Taxes Current Year How We Compare to Other Cities? Our sample of 30 Iowa Cities with populations > 10,000 in order by Total Levy Rate

  11. FY 2014/15 Budget Highlights 2) Provides funding for existing City services and several new programs:

  12. 3) Union Contracts Funds first year of two year contracts with all of our bargaining units

  13. 4) Personnel Requests – 4 FTEs

  14. FY 2014/15 Budget Highlights: 5) Health Insurance –

  15. FY 2014/15 Budget Highlights: 6) Liability Insurance – Total Liability Insurance up $70,467 or 10.37%. • Of that, workers compensation fees make up $46,121 • Mod rate reduced to .96 due to the Bettendorf losses being lower than statewide average losses. • Striving to manage our Work Comp insurance costs although….. • Continue to have increased wages • A potential 10% State of Iowa published rate increase on various job classifications is expected. • Mod rate calculation under state review

  16. FY 2014/15 Budget Highlights:7) Projects Major Revenues to remain Stable

  17. Building Permit History

  18. FY 2014/15 Budget Highlights: 8) Gaming Revenue - $1.5 million We are recommending a 5-year plan that: • Reduces allocation of Gaming to supplement operating budgets: • Increases allocation of Gaming to one-time capital projects: • Projects ending fund balance at June 30, 2019: $1,000,000 9) Sales Tax Revenue - $2 million We are recommending a 5-year plan that: • Increasesprojected ending fund balance at June 30, 2019: $2,200,000

  19. FY 2014/15 Budget Highlights:10) Major Fund Balances remain stable

  20. 11) Community Improvement Program 2014/15 Construction Season: $15.4 million

  21. Community Improvement Program 2014/15 Construction Season: $15.4 million

  22. Community Improvement Program continued • Enterprise Fund Projects FY 14/15: $105,000

  23. Vehicle/Capital Equipment Requests

  24. FY 2014/15 Budget Highlights:12) User Fees - Continue to adjust user fees, when appropriate, to offset increases in the cost of programs.

  25. Proposed Solid Waste Fee Increase 3% • Continue 3% increases each April 1 to balance revenues and expenditures – BREAKEVEN • With the implementation of single stream recycling carts and trucks, 4% increases may be needed beginning 4/1/16.

  26. Fee increases are primarily project driven. See CIP for details.

  27. 5-year Storm Water Plan: $3.96 million (assumes hiring 2 FTEs):

  28. Fee increases are primarily project driven. See CIP for details.

  29. 5-year Sewer Utility Plan: $7.5 million

  30. Annual Impact of Property Taxes & Fee Changes in FY 14/15 Budget:

  31. We are pleased to report… • A balanced budget that maintains the current levy rate at $12.55 while reducing the reliance on Gaming Revenue for operational expenditures. • Despite holding the levy rate, Bettendorf homeowners will see a slight increase in the City portion of their tax bills in FY 14/15 due to the increase in the rollback on residential property. • Most commercial property owners will see a decrease in the City portion of their tax bills due to the 5% rollback on commercial property. Questions & Comments

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