HomeMy WebLinkAboutCouncil Packet - 2/17/2020Council Work Session
February 17, 2020
Time indicated below
Harold E. Getty Council Chambers
Roll Ca11.
Approval of Agenda, as proposed or amended.
4:40 p.m. Discussion of the FYE2021 budget.
Submitted By: Michelle Weidner, Chief Financial Officer
ADJOURNMENT
Kelley Felchle
City Clerk
CITY OF WATERLOO
Council Communication
Discussion of the FYE2021 budget.
City Council Meeting: 2/17/2020
Prepared:
REVIEWERS:
Department Reviewer Action Date
Finance Felchle, Kelley Approved 2/13/2020 - 10:51 AM
ATTACHMENTS:
Description Type
o Levy Definitions Backup Material
SUBJECT:
Submitted by:
Recommended Action:
Summary Statement:
Expenditure Required:
Source of Funds:
Policy Issue:
Alternative:
Background Information:
Discussion of the FYE2021 budget.
Submitted By: Michelle Weidner, Chief Financial Officer
Property Tax Levies Used by the City of Waterloo
General Fund Levy
The State Code of Iowa Section 384.1 sets forth the maximum general fund tax levy amount that can be
raised for Cities. The general fund levy can be used for any lawful purpose, such as paying for salaries
and utilities. The Code states that "A city's tax levy for the general fund shall not exceed $8.10 per
thousand dollars of taxable property value in any tax year, except for the levies authorized in Iowa Code
Section 384.12." The City of Waterloo has been at the $8.10 maximum levy limit for many years.
Emergency Levy
The State of Iowa allows cities to use the Emergency Levy in instances where a city has reached the
$8.10 General Fund levy maximum and has additional taxation needs. A city may establish an emergency
fund and may certify taxes not to exceed twenty-seven cents per thousand of taxable property value.
This levy can only be used if a city is at the maximum General Fund levy of $8.10.
Debt Service Levy
The State of Iowa allows for a debt service levy, which is used to fund the annual payments on funds the
City has borrowed. Section 384.4 of the Code of Iowa states that "A city shall establish a debt service
fund and shall certify taxes to be levied for the debt service fund in the amount necessary to pay"
1. Judgments against the city, except those authorized by state law to be paid from other funds;
2. Interest and principal payments as they become due, or are required to be paid to a sinking fund
and related administration expenses.
This levy is unlimited. However, total debt entered into by the city is limited to 5% of the total assessed
property value in the city, under the Constitution of the State of Iowa.
Employee Benefits Levy
The State of Iowa allows Cities to levy a property tax to fund employee benefits, including items such as
payroll taxes (FICA, Medicare), retirement plan contributions (IPERS, MFPRSI), unemployment benefits,
worker's compensation benefits and health insurance. There is no maximum for this levy under the law,
but it can be used only to fund employee benefits.
Transit Levy
The State of Iowa allows Cities to levy a property tax for the operation of a transit (bus) system. The
amount of the levy is limited by State of Iowa law to no more than $.95 per thousand dollars of taxable
property value. These funds are used to fund the operation and maintenance of a municipal transit
system when the revenues of the system are insufficient to pay the expenses of the system.
Insurance Levy
Cities are allowed to levy a property tax to fund premium costs for tort liability insurance, property
insurance and any other insurance that may be needed for the operation of the city, and the costs of a
self-insurance program. This levy has no maximum, but its use is limited to the actual costs of the
insurance program.
Emergency Management Commission Levy
Cities may levy a property tax for the support of a local emergency management commission
established pursuant to Iowa Code Chapter 29C. There is no maximum, but its use is limited to the
amount necessary for the operation of the Emergency Management Commission.
VOTED LEVIES
Additional levies are permitted if passed by referendum (vote of the citizens).
Cultural & Scientific Levy
Cities may levy a property tax not to exceed twenty-seven cents per thousand dollars of taxable
property value for the operation of cultural and scientific facilities, if approved by a vote of the citizens.
Library
Cities may levy a property tax not to exceed twenty-seven cents per thousand dollars of taxable
property value for the support of a public library, if approved by a vote of the citizens.
Additional levies are authorized under the state Code, but are not currently used by the City.