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Home My WebLink AboutSupplemental Attachments - 1.17.20231/17/2023 FY 2024 BUDGET INITIAL PRESENTATION CIIX OF WATERLOO, IOWA anuary 17, 2023 CITYOF LJIJTERLOO 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 1 1/17/2023 City Revenues FY23 Update 3 Property Tax Revenue Fiscal Year Budgeted Actual % to Actual Fiscal 19-20 $ 21,751,387 $ 21,578,481 99.21% Fiscal 20-21 $ 21,814,042 $ 21,971,852 100.72% $ 22,148,525 $ 22,093,015 99.75% Fiscal 22-23 $ 22,511,902 $ 12,016,343 53.38% Fiscal 21-22 * Revenues are tracking nearly exactly as expected (53% of total) 4 2 1/17/2023 Other City Tax Revenue This includes utility taxes, gaming and cable fees, and hotel/motel taxes Fiscal Year Fiscal 19-20 Fiscal 20-21 Fiscal 21-22 Fiscal 22-23 Budgeted $ 7,697,238 $ 7,876,470 $ 7,810,721 $ 8,098,853 Actual $ 7,322,420 $ 7,530,888 95.61% $ 9,017,666 $ 4,867,235 60.10% % to Actual 95.13% 115.45% * Revenues are tracking nearly exactly as expected (60% of total) 5 Fees, Licenses & Permits Revenue Fiscal Year Fiscal 19-20 Fiscal 20-21 Fiscal 21-22 Fiscal 22-23 Budgeted Actual % to Actual $ 10,052,881 $ 10,422,412 103.87% $ 13,328,877 $ 11,379,005 85.37% $ 14,015,738 $ 14,010,414 99.96% $ 13,886,943 $ 7,375,008 53.11% * Revenues are tracking nearly exactly as expected (53% of total) 6 3 1/17/2023 Totals (Listed Categories) Fiscal Year Fiscal 19-20 Fiscal 20-21 Fiscal 21-22 Fiscal 22-23 Budgeted Actual % to Actual $ 39,501,506 $ 39,323,313 99.55% $ 43,019,389 $ 40,881,745 95.03% $ 43,974,984 $ 45,121,095 102.61% $ 44,497,698 $ 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 4 1/17/2023 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 6000% 40IX 4 General Fund Balance as a % of Revenues with ARPA 70.97% 2505% 2017 2018 2019 2020 2021 2022 ASSIGNED 9999, RESTRICTED/N0N SPENDABLE COMMITTED _TOTAL 99999.UNASSIGNEO 10 5 1/17/2023 50.00% 00020 3000% 20.OUi, -. 10.00% 003% General Fund Balance as a % of Revenues without ARPA 21.01 % 1649% 1018% :1] r55 GVEC 23 04% 20.17% 15.28% 17.09% 10.22% 18.50% 10 66% 756% 729% 2018 2019 2020 2021 2022 9ESTRICTED/NON SPENDABLE MN COMMITTED �70TAL �UNASSIGNEO 11 FY24 Budget Process and Tentative Timeline 12 6 1/17/2023 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 7 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 1/17/2023 8 1/17/2023 Property Tax Percentages 100.00% 95.00%__.. O.OD% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 9O C% gin _ ..222---2.2 80.00% 70.00% .. 60.00% 40.00% 56 94% 56.92% 56.41%' 54 40% 55 73% 55.64% 55.62% 55 07% 5 FY15 FY16 FY17 FY18 FY19 FV20 FY21 FY22 FY23 FY24 Residential—9—Muth-Residential —e—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% TIF 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 9 1/17/2023 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 — 4 2 0.5 0 TIF aal 100% ASSESSED -a-TAXABLE W/O TIF —TAXABLE W/ TIF 14 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. x a 16 17 18 19 20 21 22 23 24 FISCAL YEAR 20 10 1/17/2023 $19.50 $19.00 $13.50 515.10 $17.50 $17.00 516 s6 Property Tax Levy and Home Tax Bill 10 Year History 2015 2010 zml 2018 1010 2020 10.1 1D2 2077 $1@s $1,015 51,455 $1,491 91,S.6 $1,478 91b20 51.546 $?000 91553 117.49 $17.95 $17.76 117b1 $17.60 917.45 917s5 518.44 910.63 91897 $1,700 $1,650 5? 600 $1.550 $1,500 $1,450 51,400 51,350 21 11