HomeMy WebLinkAboutCouncil Packet - 1/17/2023COUNCIL WORK SESSION
January 17, 2023
Time indicated below
Harold E. Getty Council Chambers
RULES FOR WORK SESSION PUBLIC COMMENT
Iowa Code Chapter 21 gives the public the right to attend council meetings, but it
does not require cities to allow public participation except during public hearings. The
city council shall not receive any public comment during a work session.
Roll Ca11
Agenda, as proposed or amended
Approval of Minutes
Minutes of January 3, 2023, Work Session, as proposed.
4:00 p.m. Agenda management software training.
Submitted By: Kelley Felchle, City Clerk
Approx. Discussion of the FY 2024 budget.
4:30 p.m.
Submitted By: Bridgett Wood, Finance Manager
ADJOURNMENT
Kelley Felchle
City Clerk
CITY OF WATERLOO
Council Communication
Minutes of January 3, 2023, Work Session, as proposed.
City Council Meeting: 1/17/2023
Prepared:
REVIEWERS:
Department Reviewer Action Date
Clerk Office Higby, Nancy Approved 1/5/2023 - 12:26 PM
ATTACHMENTS:
Description Type
❑ Minutes of 1/3/2023 Backup Material
COUNCIL WORK SESSION
January 3, 2023
4:15 p.m.
Harold E. Getty Council Chambers
Members present: Boesen, Nichols, Amos, Grieder, Wilder and Feuss. Absent: Chiles.
101117 - Grieder/Amos
that the Agenda, as proposed, be approved. Voice -vote Ayes: Six. Motion carried.
101118 - Grieder/Amos
that the Minutes, as proposed, for the Regular Session on Monday, December 19, 2022, at 5:30
p.m., be accepted and approved. Voice vote -Ayes: Six. Motion carried.
Objective: Discussion of amendments to fireworks ordinance.
Martin Petersen, City Attorney, provided an overview of the proposed ordinance.
Mr. Grieder highlighted that this ordinance would reduce the number of days down to July 4 but
that it has a mechanism to allow for additional days if passed by resolution no later than March.
Martin Petersen confirmed.
Mr. Grieder questioned if this would impact Mayor's fireworks.
Kelley Felchle, City Clerk, commented that it would not impact display fireworks as these are
permitted under a different code section.
Mr. Amos questioned why the ordinance reduces the days to just one.
Mr. Feuss commented the reason was due to how the holiday fell this last year with the 5th and
6th falling on work days. He stated that it would still be an option for council to make adjustments
each year so that allowable dates would fall on the weekend and holiday.
Mr. Boesen questioned why we would want to start allowing fireworks at 9:00 a.m. He further
questioned the enforcement changes in the ordinance.
Martin Petersen explained that Iowa Law is clear that a violation is a simple misdemeanor. Mr.
Morrissey made it a municipal infraction, which had to come out. The reference to zoning also
had to come out due to the conflict with state law.
Mr. Feuss commented that he would prefer to keep the start time at noon.
Mr. Grieder agreed that he would prefer to keep the start time at noon.
Mr. Boesen questioned when this would come back to council.
Mr. Petersen commented that the ordinance would come back in February.
Mr. Grieder commented that he is in favor of utilizing the resolution to potentially expand usage
or not depending on when the holiday falls. His suggestion would be to potentially add the
weekend before the 4th of July and the 4th of July.
Mr. Nichols commented that he would prefer to only utilize the resolution to provide flexibility
around the 4th and explained how it could be confusing by stating weekend before if July 4th falls
on a Friday.
Mr. Boesen commented that he would like to leave the ordinance as is.
Page 2
Kelley Felchle explained the upcoming schedule for getting the ordinance and resolution
adopted.
Objective: Discussion of an ordinance amending pet license fees.
Damian Fischels, Safety Director and interim Animal Control Services Manager, provided an
overview of the ordinance.
City Council discussed the proposed ordinance changes with Damian Fischels.
101119 - Grieder/Amos
that the meeting be adjourned at 4:46 p.m. Voice -vote Ayes: Six. Motion carried.
Kelley Felchle
City Clerk
CITY OF WATERLOO
Council Communication
Agenda management software training.
City Council Meeting: 1/17/2023
Prepared: 1/4/2023
REVIEWERS:
Department Reviewer Action Date
Clerk Office Felchle, Kelley Approved 1/4/2023 - 5:26 PM
SUBJECT:
Submitted by:
Recommended Action:
Summary Statement/
Background Information:
Neighborhood Impact:
Data:
Community Engagement
Methods:
Analysis and Strategies:
Implementation, Accountability,
and Communication::
Expenditure Required/ Source
of Funds:
Alternative:
Agenda management software training.
Submitted By: Kelley Felchle, City Clerk
CITY OF WATERLOO
Council Communication
Discussion of the FY 2024 budget.
City Council Meeting: 1/17/2023
Prepared: 1/4/2023
REVIEWERS:
Department Reviewer Action Date
Clerk Office Felchle, Kelley Approved 1/4/2023 - 5:23 PM
ATTACHMENTS:
Description Type
o FY24 Initial Budget Presentation Handout Backup Material
SUBJECT:
Submitted by:
Recommended Action:
Summary Statement/
Background Information:
Neighborhood Impact:
Data:
Community Engagement
Methods:
Analysis and Strategies:
Implementation, Accountability,
and Communication::
Expenditure Required/ Source
of Funds:
Alternative:
Discussion of the FY 2024 budget.
Submitted By: Bridgett Wood, Finance Manager
FY 2024 BUDGET
INITIAL PRESENTATION
CITY OF WATERLOO, IOWA
January 17, 2023
CITY OF
TERLOO
J
IOWA
Community of Opportunity
Outline
1.FY23 City Revenues — Current
2.General Fund Balances as of 6/30/22
3.FY24 Budget Process and Tentative Timeline
4.FY24 Rollback Update and Property
Valuations
2
City Revenues
FY23 Update
3
Property Tax Revenue
Fiscal 19-20 $ 21,751,387 $ 21,578,481 99.21%
Fiscal 20-21 $ 21,814,042 $ 21,971,852 100.72%
Fiscal 21-22 $ 22,148,525 $ 22,093,015 99.75%
Fiscal 22-23 $ 22,511,902 $ 12,016,343 53.38%
* Revenues are tracking nearly exactly as expected (53% of total)
4
Other City Tax Revenue
This includes utility taxes, gaming and cable fees, and hotel/motel taxes
Fiscal 19-20
Fiscal 20-21
Fiscal 21-22
Fiscal 22-23
$ 7,697,238
$ 7,876,470
$ 7,810, 721
$ 8,098,853
$ 7,322,420
$ 7,530,888
$ 9,017,666
$ 4,867,235
95.13%
95.61%
115.45%
60.10%
* Revenues are tracking nearly exactly as expected (60% of total)
5
Fees, Licenses & Permits Revenue
Fiscal 19-20 $ 10,052,881 $ 10,422,412 103.87%
Fiscal 20-21 $ 13,328,877 $ 11,379,005 85.37%
Fiscal 21-22 $ 14,015,738 $ 14,010,414 99.96%
Fiscal 22-23 $ 13,886,943 $ 7,375,008 53.11%
* Revenues are tracking nearly exactly as expected (53% of total)
6
Totals (Listed Categories)
Fiscal 19-20
Fiscal 20-21
Fiscal 21-22
Fiscal 22-23
$ 39,501,506
$ 43,019,389
$ 43,974,984
$ 44,497,698
$ 39,323,313 99.55%
$ 40,881,745 95.03%
$ 45,121,095 102.61%
$ 24,258,586 54.52%
Note: Does not include all revenues (left out grant revenue,
investment interest, asset sales, assessments and some other similar
minor categories which can be wildly inconsistent
7
General Fund Balances
as of June 30, 2022
8
General Fund Balance Policy
• Our Fund Balance and Reserves Policy is in
accordance with GASB Statement No. 54
• Fund balances are reported as Non -spendable,
Restricted, Committed, Assigned, and Unassigned.
• Moody's requires a Fund Balance of 15%-30% of
revenues for our current Aa2 Bond rating, with the
unassigned fund balance being the focus.
• Our current unassigned fund balance with ARPA is at
25% of revenues and without ARPA is at 18% as of
June 30, 2022.
9
30.00%
20.00%
10.00%
0.00%
General Fund Balance as a % of Revenues
with ARPA
21.01% 20.17 % 21.04%
2017
ASSIGNED
2018
2019
2020
RESTRICTED/NON SPENDABLE COMMITTED -TOTAL
2021
25.05
UNASSIGNED
2022
10
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
General Fund Balance as a % of Revenues
without ARPA
47.69%
21.01%
16.49%
10.18%
46.52%
20.17%
15.28%
11.06%
18.62%
12.94%
9.95 %
41.27%
21.04%
11.15%
8.70%
17.09%
10.22%
36.54%
18.58%
7.56% 7.29%
10.66%
2017 2018 2019 2020 2021 2022
ASSIGNED RESTRICTED/NON SPENDABLE MOM COMMITTED -TOTAL -UNASSIGNED
11
FY24 Budget Process and
Tentative Timeline
12
FY24 Budget Process
• Capital Improvements Program - Meetings with departments happened in
December. Planning is anticipating getting the information out sometime this week.
• The Finance Department developed the base personnel budgets based on FY23
staffing. Information was provided to departments for review.
• Finance has calculated the base budget using updated personnel and current year
property valuations. Estimated FY24 contractual information (retirements, new
hires, pensions, health care costs and pay rates) were also included.
• Departments were directed to review current budgets and provide funding
requests for critical needs to the Finance Department with their budget entry
into New World.
• Budget options - Staff, council members and the public are encouraged to submit
additional funding requests to the Finance Department before January 27, 2023.
There may not be adequate time to consider suggestions made after the date for
the FY24 budget. We must have ALL increases incorporated into the published
budget.
• Budget work sessions can be scheduled as needed.
13
FY24 Tentative Budget
Timeline
• All cities are required to hold a public hearing and approve a resolution every year
showing the proposed maximum levy rate.
• This notice, hearing and resolution must all be completed before a city can set the
date of public hearing for adoption of the complete budget.
• Staff is currently planning to set date of max levy rate and bond hearings on
February 6, 2023 (can't exceed rate for certain levies after publication estimated on
February 10) for February 20, 2023.
• Council adopts resolutions for final budget publication, holds bond hearing, adopts
pre -levy resolution to allow us to bond for the next fiscal year's needs, and to set
final budget hearing on February 20, 2023 (can't exceed rate or expenses by
program after publication estimated at February 24th) for March 6, 2023.
14
FY24 Rollback Update and
Property Valuations
15
Rollback Update
• The Iowa Legislature eliminated the former Business Property Tax Credit
for FY24 and replaced it with a new two -tiered rollback process for
commercial, industrial and railroad properties. This impact reduces the
taxable value of those classes of property in the new valuation reports.
— For FY24, the State will be taxing the first $150,000 of all commercial, industrial, and railroad
properties at the residential rollback of 56.4919%. The remaining amount over the $150,000
will be taxes at the 90% rollback.
• Multi -Residential properties are no longer a separate classification and
are taxed at the residential rate.
• Residential rollback is 56.4919% for FY24 which means we will receive
more residential taxable value even if we saw no actual increase in the
100% values.
• Agricultural rollback is 91.6430% for FY24 which means any ag land we
have, we will receive more taxable value even if there were not increase
in the 100% values.
16
Property Tax Percentages
100.00%
95.00 %
90.00% 95.00%
80.00%
70.00%
60.00%
0.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
90.00%
86.25%
82.50%
78.75%
75.00 %
71.25%
67.50% r
63.75%
0 0 56.94% 0 56.92 % 56.41 % 56.49%
50.00% 54.40% 55.73% 55.64% 55.62/0 55.07% 54.1
40.00%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24
tResidential tMulti-Residential Commercial
17
Change in Assessed Valuation by Class
FY 22-23
FY 23-24
Change
% Change
Residential
2,838,957,604
2,937,110,210
98,152,606
3.46%
*Multi -Residential
73,580,693
-
(73,580,693)
-100.00%
Commercial
731,005,677
711,923,706
(19,081,971)
-2.61%
Industrial
128, 850, 822
128, 502, 566
(348, 256)
-0.27%
Utilities and Railroads
203,381,237
252,895,704
49,514,467
24.35%
TI F
339, 815, 284
389,120, 346
49, 305, 062
14.51%
Sub -Total
4,315,591,317
4,419,552,532
103,961,215
2.41%
Ag Land
17,530,256
17,347,770
(182,486)
-1.04%
Total
4,333,121,573
4,436, 900, 302
103, 778, 729
2.40%
* In FY2024 Multi Residential is no longer a separate classification, it combines
with the Residential Classification.
18
Change in Taxable Valuation by Class
FY 22-23
FY 23-24
New Growth
Change
% Change
Residential
1,518,128,590
1,636,718,597
53,130,202
118,590,007
7.81%
*Multi -Residential
43,752,691
-
(46,907,692)
(43,752,691)
-100.00%
Commercial
635, 769, 782
552, 031, 332
(17,173, 774)
(83, 738, 450)
-13.17 %
Industrial
109, 045, 925
104, 313, 957
(313, 430)
(4,731,968)
-4.34%
Utilities and Railroads
87,752,697
83,760,080
(3,992,617)
(3,992,617)
-4.55%
TIF
339, 815, 284
389,120, 346
49, 305, 062
49, 305, 062
14.51%
Less: Military Credit
(4,516,907)
(4,286,637)
230,270
230,270
-5.10%
Sub -Total
2, 729, 748, 062
2, 761, 657, 675
34, 278, 021
31, 909, 613
1.17%
Ag Land
15, 592, 222
15, 870, 059
277,837
277,837
1.78%
Total
2, 745, 340, 284
2, 777, 527, 734
34, 555, 858
32,187, 450
1.17%
* In FY2024 Multi Residential is no longer a separate classification, it combines
with the Residential Classification.
19
VALUATION (BILLIONS)
City of Waterloo Valuation Trends
4.5
3.5
2.5
1.5
0.5
TIF
100% ASSESSED
f TAXABLE W/O TIF
--TAXABLE W/ TIF
■� �'� ■ ■ ■
This is a 2.4% increase in total assessed value and a
1.17% increase in taxable value for FY24 because of the
increase in TIF.
14 15 16 17 18 19 20 21 22 23 24
FISCAL YEAR
20
$19.50
$19.00
$18.50
$18.00
$17.50
$17.00
$16.50
HOME TAX BILL
�•-TAX RATE
Property Tax Levy and Home Tax Bill 10 Year History
/',
•/
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
$1,424 $1,445 $1,465 $1,491 $1,526 $1,478 $1,520 $1,546 $1,600 $1,653
$17.49 $17.95 $17.76 $17.61 $17.60 $17.45 $17.55 $18.44 $18.63 $18.97
$1,600
$1,550
$1,500
$1,450
$1,400
$1,350
$1,300
21