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Home My WebLink AboutCouncil Packet - 3/4/2024CITY OF %�64TERLOO IOWA THE CITY COUNCIL OF WATERLOO, IOWA WORK SESSION TO BE HELD AT Harold E. Getty Council Chambers Monday, March 4, 2024 4:20 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 of February 19, 2024, as presented. 4:20 p.m. Discussion of the FY2025 budget. Submitted by: Bridgett Wood, Finance Director Approx. 4:45 Discussion of Street Department vehicle replacement. p.m. Submitted by: Randy Bennett, Public Works Division Manager ADJOURNMENT Kelley Felchle City Clerk Page 1 of 12 February 19, 2024 COUNCIL WORK SESSION Harold E. Getty Council Chambers 3:30 p.m. Roll Call Members present: Mayor Quentin Hart in the Chair. Mr. Boesen, Mr. Chiles, Ms. Wilder and Mr. Feuss. Mr. Nichols arrived at 3:52 p.m. Ms. Creighton -Smith and Mr. Simon arrived at 4:23 p.m. Agenda, as proposed or amended Feuss/Chiles that the agenda, as proposed, be approved. Voice vote -Ayes: Four. Motion carried. Approval of Minutes of February 5, 2024, as proposed. Feuss/Chiles that the minutes of February 5, 2024, as proposed, be approved. Voice vote -Ayes: Four. Motion carried. Discussion of a Wage and Compensation Survey. Lance Dunn, Human Resources Director, Missy Gearhart, Assistant Human Resources Director, and Bridgett Wood, Finance Director, provided an overview of the results of the Wage and Compensation Survey. They explained the scope of the project, how employee information was collected, and the scoring process to determine where an individual would fall in regard to compensation. Bridgett Wood reviewed the cost of implementation. Mayor Hart commented that the study showed that we are pretty close to where we should be for salaries in most cases. He further commented that some of the positions would be within range with the potential of a 3% salary increase recommendation for non -bargaining employees. He explained that there are plans to meet with the consultant again to review a few different scenarios in consideration of the tough budget year. Mr. Boesen questioned where money would come from to pay for pay adjustments. Bridgett Wood explained that it would come from different funds, as not all salaries come from the general fund. Mr. Boesen commented that he appreciates that the study was done. Discussion of the Downtown Parking Study. Bridgett Wood, Finance Director, introduced John Forster of Fishbeck Consulting. John Forster, Fishbeck Consulting, provided an overview of the parking study. Page 1 of 3 Page 2 of 12 Mr. Nichols questioned why the recommendation was 90 minutes of parking for free. John Forster, explained the recommendation. Mr. Boesen questioned the funds to implement the program. Bridgett Wood, Finance Director, explained that the kiosk is a one-time purchase and that there are bond funds available as well. Mr. Boesen questioned how revenue would be managed if the state enacted the double-dipping act. John Forster commented that he is not familiar with the legislation but explained that this program is paid by plate, so someone is paying or their use only and not for the space. There may need to be some consideration to review this, as plate recognition software is a becoming more controversial. Mr. Chiles thanked Mr. Forster for his efforts and work on the parking study. He shared that his main focus is to update the city's infrastructure so we have the ability to be smart city. Mr. Boesen thanked Mr. Forster for his comments regarding the need to work together with the convention center on parking issues. Mayor Hart commented that a meeting was recently held on parking concerns and how to better promote parking options. He shared that he has additional questions and that he would like to have a more in-depth conversation. Discussion of the FY 2023 Financial Audit. Bridgett Wood, Finance Director, introduced Dustin Opatz with Bergen KDV to present the FY2023 Financial Audit. Mayor Hart and Council Members discussed the audit with Mr. Opatz. Feuss/Chiles to recess at 4:44 p.m. Voice vote -Ayes: Seven. Motion carried. Feuss/Boesen to reconvene at 4:55 p.m. Voice vote -Ayes: Seven. Motion carried. Discussion of a resolution titled, "Resolution supporting a permanent ceasefire in Palestine and Israel, the return of all hostages, and the delivery of humanitarian aid; and affirming opposition to antisemitism, Islamophobia and anti-arab bigotry with the aim of achieving a just and lasting political solution." Abraham Funchess, Human Rights Director, provided comments on important elements of the resolution. Ms. Creighton Smith shared that passing this resolution would speak volumes in showing the city's support for those students in our city who are affected by this conflict. Page 2 of 3 Page 3 of 12 Mr. Boesen commented that he does not believe the figures are correct that show how much money Waterloo has given to Israel and stated his reasons. Mr. Simon commented that it is his opinion, and that of his constituents, that the city should not be involved at the level of passing a resolution if the majority of our citizens is not being represented. He stated that a letter from the Waterloo Director of Human Rights would show the support that is being requested. Abraham Funchess commented that he believes that a resolution passed by the city council would be far more powerful than a letter by a director. He shared additional wording that could be included that might gain wider support of the resolution. Mr. Boesen questioned when this would come to a vote. Mayor Hart shared that it is time to come to a vote on this in the next meeting. Mr. Nichols commented that he has had an opportunity to hear the voice of many who are passionate about how this has affected so many. He agrees that a resolution would be more powerful than a letter from the director or any other singler person within our community. He spoke to the power of joining other cities with similar resolutions. He supports the passing of this resolution. Mr. Chiles commented that he does support the intent of the resolution, however he does not believe that we would have the impact that is anticipated. He stated that he would support a proclamation. Ms. Wilder shared that she believes we do have the power to make a difference. Mr. Feuss concurs with the suggestion of a proclation along with a statement from our Human Rights Director which would still show the council is taking a stand. Mayor Hart commented that based on council comment, a resolution may not work at this time. He stated that our collective voice does speak volumes but recognizes that it may still not be enough. He suggested that he and Mr. Funchess meet to discuss alternative ways to show the city's support. ADJOURNMENT Feuss/Chiles that the council adjourn at 5:10 p.m. Voice vote -Ayes: Seven. Motion carried. Kelley Felchle City Clerk Page 3 of 3 Page 4 of 12 CITY OF J ,ATERLOO �. COMMUNICATION TO THE WATERLOO CITY COUNCIL NAME AND DEPARTMENT MEETING DATE Finance Department March 4, 2024 AGENDA ITEM TITLE Discussion of the FY2025 budget. RECOMMENDED COUNCIL ACTION SUMMARY STATEMENT AND BACKGROUND INFORMATION NEIGHBORHOOD IMPACT DATA, ANALYSIS, AND STRATEGIES IMPLEMENTATION, ACCOUNTABILITY, AND COMMUNICATION COMMUNITY ENGAGEMENT METHODS SOURCE OF EXPENDITURES ALTERNATIVE ACTION LEGAL DESCRIPTION ATTACHMENTS 1. FY25 Proposed Levy Rates & Budget Presentation 03 04 24 Page 5 of 12 2/29/2024 FY2025 PROPOSED LEVY RATES CITY OF WATERLOO, IOWA March 4 202 - EIR.�oo IOWA CpmmT ty of Opportunity 1 2 1 Page 6 of 12 2/29/2024 Coen Dollar 130,1100 with PIP,Orty Taeea ............. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... ................................................................................ .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ................................................................................ .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... ................................................................................ .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ................................................................................ .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... woo Unified Law Enforcement Total General Fund Regular Levies (5 thru 24) amass Ag Land Total General Fund Tax Levies (25 + 26) nou SSMIO MAIO SSMIO ss Total Special Revenue Levies m.1., Debt Service Levy 76.10(6) os.mo Capital Projects (Capital Improv. Reserve) Total Property Taxes (27+39+40+41) 3 A 0 Revenues 6 Other Financing Sources Taxes Levied on Property. ........................................... 1. ....... ....... ....... ........ Less Uncollected PrpperlyTaxesLeuy Year.....2 Net e [Curren[ ...........t.P....... Pro.err Taxes 3 CITY OF Waterloo ADOPTED BUDGET SUMMARY YEAR ENDED JUNE 30, 2025 Fiscal Years GENERAL C SPECIAL REVENUES 0 TIF SPECIAL REVENUES DEBT SERVICE CAPITAL PROJECTS G PERMANENT PROPREETA H I ❑eloquent Prvpe kT"es. IF Res OtherCyTres, Lenses&Perm!, Use of Money and Property 8 g ve merda harps I or Fees &Served 10 Sp al Assessments 11 Miscellaneous 12 Sub.Toral Revenues 13 4 5 6 7 8 904,335 1,484,705 634,508 2 527,687 13748,178 470,033 9 541,187 62,424,657 Other Financing Sources: Total Transfers In Proceeds of Debt Proceeds of Capital Asset Sales Total Revenues and Other Sources 14 15 16 17 15,785,091 85,000 78,294,748 Expenditures 6 Other Financing Uses Pubic Safety__.. 18 Public Works 19 Health and Social Services 20 C lure and Recreation 21 C m only and E ! m,Deuelopmenr 22 General Government23 Debt Servce 24 capital Projects 25 39 684,182 7 626,298 390,517 13 435,443 4 602,679 12 793,610 Total Government Activities Es. end 26 Total Gov 6 Bus T a Es. enditures 23 Total Transfers Out 29 otal ALL E.. cediteresirend Trawlers30 73 532 799 9 776 083 5037,528 37,190 235 16,339 335 17,472 0 23,431,150 87,015,720 a 4,876,642 4,376,642 15,992,126 15,992,1241 349,185 0 20 033,000 0 9 0 0 2303,333 22 308 333 BUDGET 2025 J RE -ESTIMATED 2024 ACTUAL 2023 1200 140,060 2336,570 25067,346 40,000 0 27616416 43 053 936 21,144,433 2181 os44 1,519705 2,448 000 76,503241 39,254131 510,00 11,9443270 227,347,125 13 065 256 20 596 255 1,524,035 2 093,260 50 508,399 38 207,569 308,003 10 704,209 82.185.841 19,339 11,230,764 23171151 1,431 558 5,146 545 30,684739 41,047383 338.051 14,578 331 172,406.970 43958936 42 895,342 36 034,563 366,250 3 374,794 21,234,443 2 134,184 4 678,350 52 403 483 93 121 409 61 765 323 40,585,272 25,153868 349862 877904 8,437807 9,884962 4,698412 27055421 48 048 508 78 532799 0 00a ODE 83 532799 Excess Revenues & Other Sources Over 31 Under EP.endrtweslTransfers Out 32 0 233 05 Beginning Fund Balance Jul, 1 Endin. Fund Balance June 30 39 33 47 474,6 37 236 560 87015720 4376642 5992120 53308333 43 553 936 287 784 550 MUMS 77 472 062 5,705 028 32 720 748 4,322,943 9199 585 -8936396 2237 699 5992120 53 303 333 -14335-10009600 958 822 45 017 753 3396342 41,986793 329 771 343 36.327.805 291 215 037 -30 347425 -31 295 391 litEWSWMINITfflitnillitSWMAI 25.013.936 202535993 9103339 36,184 0 27 247 615 445,105 792 594 089,153 074 823 3112,557 3,112.357 25680,772 22234430 n 096.94 91 748579 53.391 395 22 096 004 44,282,556 53 391 395 4 2 Page 7 of 12 2/29/2024 FY2025 Proposed Levy Rates Non-Ag Change Ag Change 13.80% (5.75%) Tax Rate Comparison - Current VS. Proposed Residential property with an Current Year actual/assessed value of $100,000 Certified 2023/2024 City Regular Resident Commercial property with an actual/assessed value of $100,000 $1,078 Budget Year Certified 2023/2024 $1,038 Percent Change -3.71% City Regular Commercia Current Year Certified 2023/2024 Budget Year Certified 2023/2024 $1,078 $1,038 Percent Change -3.71% 5 5 Program FY2025 Proposed Levy Rates Percentage of Tax Levy Portion Levy Police and Fire $ 13.46703 60% Debt Service $ 3.20294 14% All Other Services $ 5.73721 26% Total City Levies $ 22.40718 100% Total $ 22.40718 6 6 3 Page 8 of 12 2/29/2024 FY2025 Proposed Levy Rates Program - Breakout of Other Building Inspections Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government Total Other Tax Levy Portion $ (0.06943) $ 0.905955 $ 0.153796 $ 3.60366 $ 0.335193 $ 0.80804 $ 5.737214 7 7 General Fund City Services* Function Proposed Levy Rate Expenditures Public Safety $44.7 million Public Works $7.6 million Health & Social Services $0.39 million Culture & Recreation $13.4 million Community & Economic $4.6 million Development General Government $12.7 million *Funded primarily by Property Taxes 9 9 4 Page 9 of 12 2/29/2024 Debt Service Fund $2,964,100_ Bond Interest Admin Fees $14,250 _$12,010,000 Bond Principal For the Year Ending 6-30-2024 With the Proposed Levy Rates, property taxes will fund $9.4 million for FY2025, and that revenue is restricted for debt repayment. 10 10 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 11 11 5 Page 10 of 12 2/29/2024 How are property taxes calculated? • The State continues to increase the residential roll -back, resulting in 46.3428% of a home's value being taxable for FY2025 • Changes started in FY2024 for Commercial, Industrial, and Railroad Properties. Those properties are taxed on the first $150,000 at the residential rollback rate of 46.3428%. The remaining amount over the $150,000 will be taxed at the 90% rollback. 12 12 How is the tax bill on my home determined? 13 FY2024 Certified FY2025 Proposed Assessed Value $ 100,000 $ 100,000 Times Rollback 0.546501 0.463428 Equals Taxable Value $ 54,650 $ 46,343 Divide by $1,000 54.6501 46.3428 Times Total Tax Levy Rate $40.18730 $42.86429 Equals Total Tax Bill $ 2,196.24 $1,986.45 City Portion of Tax Bill $1,078.26 $1,038.41 Projected Annual Incr (Decr) $ 51.32 $ (39.85) Percentage Incr (Decr) 4.76% -3.84% 13 6 Page 11 of 12 2/29/2024 47?-cp uestions? 4 14 14 Page 12 of 12