The URL can be used to link to this page

Home My WebLink AboutCouncil Packet - 3/20/2023CITY OF %4(4TERLOO THE CITY COUNCIL OF WATERLOO, IOWA WORK SESSION TO BE HELD AT Harold E. Getty Council Chambers Monday, March 20, 2023 3:55 PM 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 Call Agenda, as proposed or amended Approval of Minutes Minutes of March 6, 2023, as proposed. 3:50 p.m. - Discussion of the FY2024 budget. Submitted by: Bridgett Wood, Finance Manager Approx. 4:05 p.m. - Discussion of a residential group buy solar program. Submitted by: Jonathan Grieder, Ward 2 Council person ADJOURNMENT Kelley Felchle City Clerk Page 1 of 21 3/15/2023 FY2024 PUBLISHED BUDGET REVIEW CITY OF WATERLOO, IOWA MARCH 20, 2023 CITY OF Community of Opportunity Outline 1. Review of FY2023 2. FY2024 Published Budget 3.FY2024 Estimated Certified Budget 2 1 Page 2 of 21 3/15/2023 Review of FY2023 3 POPULATION 1 2 3 4 S 6WEST 7ANKENW BWATERLOO 9AMES' 10 11 12 13 14 15BETTENDORF' 2022/2023 CITY TAX RATES, BY CONTROL COUNTY DEPARTMENT OF MANAGEMENT - LOCAL BUDGET DIVISION TAXABLE VALUE 2020 JANUARY 1, 2021 VALUATION 8.10 TAXES TAXES LEVIED TOTAL LEVY RANKING CENSUS REGULAR W G&E RANKING LEVIED RANKING LEVY RANKING 4 DES MOINES 214,133 8,934,448,462 1 72,369,032.54 1 16.61000 4 CEDAR RAPIDS 137,710 7 221 270 520 2 58 492 291.21 2 16.02620 5 DAVENPORT 101,724 4,976,226,877 4 40,307,437.70 4 16.78000 3 SIOUX CITY 85,797 3,284,864,638 9 26,607,403.57 8 15.41950 7 IOWA CITY 74,828 4,241,061,964 6 34,352,601.91 5 15.63305 6 DES MOINES 68,723 5,879,585,882 3 47,624,645.64 3 10.95000 11 67 887 4 476 429 489 5 27 544 813.57 7 9.90000 13 67,314 2,389,932,778 13 19,358,455.50 11 18.97159 1 66,427 3,399,701,391 8 18,744,559.59 12 9.82936 14 COUNCIL BLUFFS 62,799 3,220,798,982 10 26,088,471.75 9 17.82559 2 DUBUQUE 59,667 2,695,861,021 11 21,836,474.27 10 9.71686 15 URBANDALE 45,580 3,518,662,058 7 28,501,162.67 6 10.01000 12 MARION 41,535 1,876,093,949 15 15,196,360.99 15 14.20203 8 CEDAR FALLS 40,713 2,064,620,691 14 16,723,427.60 13 11.51171 10 39,102 2,667,136,438 12 15,265,568.77 14 12.65000 9 *Under $8.10 General Levy Limit 2 Page 3 of 21 3/15/2023 FY2023 $8.10 Taxes Per Capita Ames $282.18 Waterloo • $287.58 Sioux City • $310.12 Des Moines • $337.96 Marion • $365.87 Dubuque • $365.97 Bettendorf • $390.40 Davenport • $396.24 Ankeny • $405.75 Cedar Falls • $410.76 Average • $411.36 Council Bluffs $415.43 Cedar Rapids $424.75 Iowa City • $459.09 Urbandale • $625.30 West Des Moines • $692.99 5 Borrowing Limit Comparison* Council Bluffs Ames Iowa City Dubuque Cedar Rapids West Des Moines Davenport Sioux City Waterloo Des Moines 0 % 20 % 40% 60% Debt Capacity Used 80% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 • Available Waterloo *Due to lack of information available, these numbers are as of FY2021 Used 6 3 Page 4 of 21 3/15/2023 City Staffing Level Comparison* Des Moines 1,634.55 Cedar Rapids 7 1,457.88 Sioux City • 840.08 Davenport 761.00 Iowa City M. 627.08 Ames 590.60 Dubuque � 581.50(Budgeted FY2024) Waterloo • 561.08 West Des Moines 521.00 Council Bluffs Or 472.50 *Due to lack of information available, the other cities numbers are as of FY2021 7 FY2024 Published Budget 8 4 Page 5 of 21 3/15/2023 FY2024 Published Budget Highlights Program Police and Fire Debt Service All Other Services Total City Levies Voted Levies Grout Museum Voted Levy Library Voted Levy Total Percentage of Tax Levy Portion Levy $ 13.94253 $ 2.80302 13% $ 3.52537 17% $ 20.27092 98% 68% $ 0.27000 1 $ 0.27000 1 $ 20.81092 100% 9 FY2024 Published Budget Highlights Program - Breakout of Other Building Inspections Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government General Revenue State Backfill Use of Fund Balance Total Other Tax Levy Portion $ (0.09321) $ 0.88755 $ 0.13878 $ 2.79164 $ 0.18553 $ 2.96186 $ (2.34838) $ (0.99840) $ $ 3.52537 10 5 Page 6 of 21 3/15/2023 FY2024 Published Budget Highlights Residential Change 10.75% Commercial Change (12.17%) Industrial Change (6.28%) 11 Do my property taxes pay all the City's expenses? No, They Don't! Debt Proceeds 13% Other 5% Charges for Services] 18% TIF Revenues 6% Property Taxes 24% _Interest State & Local Funds Federal Funds 1% 10% 13% For the Year Ending 6-30-24 Other City Taxes 9°% Licenses & Permits 1% 12 6 Page 7of21 3/15/2023 Where does my property tax dollar go? Black Hawk Co. Other 14uente 5oanto ��| �� 'f� ��F�'��* General Fund ��'�� Services* 14 Function Published Budgeted Expenditures Property Tax Public Safety $41.5miUion Public Works $7.3miUion Health & Social Services $0.37miUion Culture &Recreation *12.5miUion Cnmmunhy&Euonomio $4.3miUkm Development General Government $10.8miUion $30.8miUion $2.0miUion $0.30miUion $7.1 million $0/4miUion $1.4miUion *Funded primarily byProperty Taxes 3/15/2023 Debt Service Fund $2,964,100 Bond Interest -N Admin Fees Bond Principal $11,700,000 For the Year Ending 6-30-2024 Property taxes will fund $7.5 million for FY2024 and revenue is restricted for debt repayment. 15 How are property taxes calculated? • County Assessor sets property values • State sets "roll -back" or the percentage of total value that is taxable • State issues "equalization orders" designed to equalize values of different categories of property every two years • Cities, counties and school districts set their portions of the levy rate 16 8 Page 9 of 21 3/15/2023 How are property taxes calculated? • The State continues to increase the residential roll- back, resulting in 54.6501 % of a home's value being taxable for FY2024 • Multi -Residential properties are no longer a separate classification and are taxed at the residential rate. • For FY2024, the State will be taxing the first $150,000 of all commercial, industrial and railroad properties at the residential rollback rate of 54.6501. The remaining amount over the $150,000 will be taxed at the 90% rollback. 17 How is the tax bill on my home determined? Assessed Value Times Rollback Equals Taxable Value Divide by $1,000 Times Total Tax Levy Rate Equals Total Tax Bill City Portion of Tax Bill Grout Portion of Tax Bill Projected Annual Incr (Decr) Percentage Incr (Decr) w/ Grout FY2024 Published $ 100,000 0.546501 $ 54,650 54.6501 $41.33841 $2,259.15 $1,137.32 $ 14.76 $ 110.38 9.71 FY2023 Certified $ 100,000 0.541302 $ 54,130 54.1302 $39.49908 $2,138.09 $1,026.94 $ 14.62 $ 34.67 3.38% 18 9 Page 10 of 21 3/15/2023 How the share of taxes has changed over time? Ratio of Taxes Paid by Type 70% 60% 50% 40% - 61% 2019 Fiscal Year 68% 2024 Residential • Comm/Ind • Utilities • Multi - Residential 19 City of Waterloo Valuation Trends 5 4.5 4 3.5 N Z 0 m 2.5 z 0 0.5 0 TIF 100% ASSESSED 14 . . . . . . . . . . ■■■II■MI111 "- ii. ■ ■■■ . P. . This is a 2.35% increase in total assessed value and a 3.26% decrease in taxable value for FY24 after the revaluation by the State. 15 16 17 18 19 FISCAL YEAR 20 21 22 23 24 20 10 Page 11 of 21 3/15/2023 Change in Taxable Valuation by Class FY 22.23 FY 23.24 New Growth Change % Change Residential 1,518,128,590 1,582,505,615 54,128,687 64,377,025 424% *Multi -Residential 43,752,691 - (46,907,692) (43,752,691) -100.00% Commercial 635,769,782 546,210,414 (19,518,611) (89,559,368) -14.09% Industrial 109,045,925 103,909,847 (472,633) (5,136,078) -4.71% Utilities and Railroads 87,752,697 83,758,760 (3,993,937) (3,993,937) -4.55% TIF 339,815,284 389,062,043 49,246,759 49,246,759 14.49% Less: Military Credit (4,516,907) (4,280,925) 234,130 235,982 -522% Sub -Total 2,729,748,062 2,701,165,754 32,716,703 (28,582,308) -1.05% Ag Land 15,592,222 15,870,059 277,837 277,837 1.78% Total 2,745,340,284 2,717,035,813 32,994,540 (28,304,471) -1.03% *In FY2024 Multi Residential is no longer a separate classification, it combines with the Residential Classification. 21 FY2024 Estimated Certified Budget 22 11 Page 12 of 21 3/15/2023 FY2024 Estimated Certified Budget Highlights Program Police and Fire Debt Service All Other Services Total City Levies Voted Levies Grout Museum Voted Levy Library Voted Levy Total Published Tax Levy Portion Estimated Certified Tax Levy Portion Change from Published $13.94253 $ 13.91626 $ (0.02627) $2.80302 $ 2.80302 $ $3.52537 $ 2.47091 $ (1.05446) $20.27092 $ 19.19019 $ (1.08073) $0.27000 $ 0.27000 $ $0.27000 $ 0.27000 $ $20.81092 $ 19.73019 $ (1.08073) 23 FY2024 Estimated Certified Budget Highlights Program -Breakout of Other Building Inspections Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government General Revenue State Backfill Use of Fund Balance Published Tax Levy Portion Estimated Certified Tax Levy Portion ($0.09321) $ $0.88755 $ $0.13878 $ $2.79164 $ $0.18553 $ $2.96186 $ ($2.34838) $ ($0.99840) $ $ Change from Published (0.09320) $ 0.76291 $ 0.13877 $ 2.71881 $ 0.18552 $ 2.96857 $ (2.34820) $ (0.99833) $ (0.86394) $ 0.00001 (0.12464) (0.00001) (0.07283) (0.00001) 0.00671 0.00018 0.00007 (0.86394) Total Other $3.52537 $ 2.47091 $ (1.05446) 24 12 Page 13 of 21 3/15/2023 How is the tax bill on my home determined? FY2024 FY2024 FY2023 Published Estimated Certified Certified Assessed Value $ 100,000 $ 100,000 $ 100,000 Times Rollback 0.546501 0.546501 0.541302 Equals Taxable Value $ 54,650 $ 54,650 $ 54,130 Divide by $1,000 54.6501 54.6501 54.1302 Times Total Tax Levy Rate $41.33841 $40.25768 $39.49908 Equals Total Tax Bill $2,259.15 $ 2,200.09 $2,138.09 City Portion of Tax Bill $1,137.32 $ 1,078.26 $1,026.94 Grout Portion of Tax Bill $ 14.76 $ 14.76 $ 14.62 Projected Annual Incr (Decr) $ 110.38 $ 51.32 $ 34.67 Percentage Incr (Decr) w/ Grout 9.71 % 4.76% 3.38% 25 FY2024 Estimated Certified Budget Highlights Residential Change 5.00% Commercial Change (16.73%) Industrial Change (11.12%) 25 13 Page 14 of 21 3/15/2023 FY2O24 General Fund Budget Impacts Personnel Increases (Primarily Contractual) Pay Increases, including payroll taxes, overtime, $1,565,287 and other payouts New Rental Inspector (Salary portion only) $72,800 Health Insurance Increase $510,329 Police & Fire Pension Decrease ($50,451) Retirement Payouts Decrease ($43,736) Total Personnel Increases $2,054,229 27 FY2024 General Fund Budget Impacts Other Significant Non -Personnel Changes Increase in election costs $60,000 Decrease dispatch (Police & Fire) ($151,530) Increase in liability insurance $559,905 Increase in work comp expenses $475,000 Increase in software expenses $238,141 Decrease in parking expenses ($48,600) Other expense changes ($165,769) Total Net Non -Personnel Expense Changes $967,147 28 14 Page 15 of 21 3/15/2023 FY2024 General Fund Budget Impacts Significant Revenue Changes Increased Clerk/Finance revenue $862,900 Increased Ambulance revenue $500,000 Increased Golf revenue $167,573 Other increases, fees, grants $328,231 Total Net Revenue Increase $1,858,704 29 FY2024 General Fund Budget Impacts Net Change in General Fund Property Taxes Net increase in personnel expenses $2,054,229 Net increase in other expenses $967,147 Net increase in revenue ($1,858,704) Net decrease in use of fund balance $1,685,924 Total Net Increase in Property Taxes $2,848,596 30 15 Page 16 of 21 3/15/2023 FY2024 General Fund Budget Impacts Net Change in Property Taxes Increase in General Fund property taxes $2,848,596 Decrease in Debt Service Fund property taxes ($288,166) Decrease special levy taxes for Library, Grout ($42,028) (Based on Valuations) Overall Net Increase in Total Property Taxes $2,518,402 31 How are Capital Project Funds used? $4,517,500� 7% $8, 030, 000 13% $15,000,000 25% $2,508,333 4% $3,935,848 7% $26,665,000 44% $100,000 0% $100,150 0% For the Year Ending 6-30-2024 Funded by TIF, Bonds, FAA Funds, Grants • Streets & Bikeways • Traffic Improvements Clean-up & Demo • TIF • GO Issue Land & Demolition Airport City Facilities 32 16 Page 17 of 21 3/15/2023 Sewer Fund Budget Debt Service for Sewer System Improvements $4,928,596 16% System Improvements $17,946,469 56% For the Year Ending 6-30-2024 Funded by Sewer Fees and SRF Loans Plant & System Maintenance Operations $9,021,168 28% 32 Storm Water Fund Budget System Improvements $2,660,000 60% Street Sweeping $416,492 9% For the Year Ending 6-30-2024 Funded by User Fees System Operations & Maintenance $1,351,395 31% 34 17 Page 18 of 21 3/15/2023 Garbage & Yard Waste Disposal, Recycling & Neighborhood Clean-ups $5,219,727 77% Sanitation Fund Budget Equipment Animal $520,000 Control 8% $487,425 /11 7% Code Enforcement $649,901 9% For the Year Ending 6-30-2024 Funded by User Fees 35 Road Use Tax Fund Budget Forestry Right -of Way Operations $1,033,907 10% Snow Removal $1,910,467 18% Street Maintenance $2,393,504 23% For the Year Ending 6-30-2024 Funded by State Fuel Tax Engineering $1,414,159 13% University Avenue & Bridge Repair Aiii_ $1,250,000 12% Street Lights $535,680 5% Traffic Operations $1,892,493 18% Traffic Signals $105,000 1% 36 18 Page 19 of 21 3/15/2023 Local Option Fund Budget $1,137,663 9% Unimproved Street Repair $833,773 6% Engineering For the Year Ending 6-30-2024 Funded by Local Option Taxes $11,183,564 85% Street Repair & Construction 36 Federal Block Grant Funds Budget Administration & Other $1,543,819 26% Neighborhood Services $89,000 2% Housing Rehab & Construction For the Year Ending 6-30-2024 Funded by Federal Block Grant Funds $4,203,162 72% 37 19 Page 20 of 21 3/15/2023 Federal Housing Funds Budget Down Payment & Other Assistance $75,000, 10/0 $367,500 5% Ridgeway Towers Senior Public Housing Administration & Other $910,230 13% For the Year Ending 6-30-2024 Funded by Federal Housing Funds Housing Assistance $5,698,220 81% 38 20 Page 21 of 21