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Home My WebLink AboutSupplemental Attachments - 2.3.2025 40dVitak by L o / )(-1 2/3/2025 - ._ volinionommommomminemommiwi 00"-A0/0 arking (Traffic) Ordinance Update • FEBRUARY 3, 2025 1 Work Session Goals • Review potential revenue losses with free parking-Metered area only • Review the proposals and come up with agreement on one to move forward with • Review additional changes to the ordinance besides pricing and enforcement that need to be changed and get approval to have them added to the next council agenda for approval(separate attachment-not in PowerPoint). 2 1 2/3/2025 Free Parking Revenue Reduction Potentials - Metered Parking Only • Meter Parking Revenue: - FY23 Revenue was$123,237.00 - FY24 Revenue was 111,634.88 • 30 Minutes Free - Could see revenue reduction of around$55,000 • 60 Minutes Free - Could see revenue reduction of around$74,000 • 90 Minutes Free - Could see revenue reduction of around $86,000 *All these are based on$1/hr rate after any free parking* • No Free Parking - Could see revenue increase of double what current income is so approx. $100,000 increase 3 Parking Proposals PROPOSAL #1 PROPOSAL #2 • 60 Minutes Free on Street Parking • No Free on Street parking • $1/hr meter parking rate • $1/hr meter parking rate • Remove Grab&Go locations • Grab&Go Stay • Citation are$15/$30/$45 • Citations are$20/$40/$60 - First one is for meter violation - First one is for meter violation - Second is for not being in compliance after 4 hours - Second is for not being in compliance after 4 hours - Third is for not registering all day - Third is for not registering all day - Towed after 24 hours - Towed after 24 hours - Offer Citation Forgiveness for 1 ticket per year - Offer Citation Forgiveness for 1 ticket per year • Keep enforcement hours the same,but add • Keep all enforcement days/hours the same Saturday to make up lost revenue • Cut all-day rate at ramps in half keeping Pr hour • Keep ramps the same as they are currently free,no other changes in permits or event parking Kiosks are able to take coupon codes,so there are option available for businesses to offer free parking to customers by paying ahead and providing a code to use. 4 2 . -,,. .1/4._____., atizioto_ _ ti,j_14., I/Jive., ad,Ii33,,_ 1/31/2025 FY 2026 BUDGET �. INITIAL PRESENTATION ^' r;sf . = i CITY OF WATERLOO, IOWA ' .; ‘ ,, ,February 3,2025 ' ;� ' if ^ 3 +7x_� i tx4 "yg� ., ...e- -.:. \,,,,'b 'qi#' 414--, 11,,,Af, ,r. f • . b - ig .•M- - . z 3 a tr,,,,A - ,, ,,, ,n,,,„, ,s. . .,.,„ ,, t �� r . . ,, *7 i 4*is `r« 4 A c_m ATERLOO • Outline 1. FY25 City Revenues — Current 2. Fund Balances as of 6/30/24 3. FY26 Budget Process and Tentative Timeline 4. FY26 Rollback Update and Property Valuations 2 2 1 1/31/2025 City Revenues FY25 Update 3 3 Property Tax Revenue Fiscal Year 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% Fiscal 21-22 $22,148,525 $22,093,015 99.75% Fiscal 22-23 $22,511,902 $22,516,720 100.02% Fiscal 23-24 $22,448,883 $22,501,479 100.24% Fiscal 24-25 $23,856,400 $12,652,206 53.04% *Revenues are tracking as nearly as expected(53%of total) 4 4 2 1/31/2025 Other City Tax Revenue This includes utility taxes,gaming and cable fees,and hotel/motel taxes Fiscal Year Budgeted Actual %to Actual Fiscal 19-20 $7,697,238 $7,322,420 95.13% Fiscal 20-21 $7,876,470 $7,530,888 95.61% Fiscal 21-22 $7,810,721 $9,017,666 115.45% Fiscal 22-23 $8,210,853 $9,412,911 114.64% Fiscal 23-24 $8,760,111 $8,793,483 100.38% Fiscal 24-25 $8,895,195 $4,625,308 52.00% *Revenues are tracking nearly exactly as expected(52%of total) 5 5 Fees, Licenses & Permits Revenue Fiscal Year Budgeted Actual %to Actual 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 $14,114,528 $16,176,694 114.61% Fiscal 23-24 $14,896,825 $15,202,970 102.06% Fiscal 24-25 $15,230,283 $6,684,973 43.90% *Revenues are tracking slightly lower than expected(44%of total) 6 6 3 1/31/2025 Totals (Listed Categories) Fiscal Year Budgeted Actual %to Actual Fiscal 19-20 $39,501,506 $39,323,313 99.55% Fiscal 20-21 $43,019,389 $40,881,745 95.03% Fiscal 21-22 $43,974,984 $45,121,095 102.61% Fiscal 22-23 $44,837,283 $48,106,325 107.29% Fiscal 23-24 $46,105,819 $46,497,932 100.85% Fiscal 24-25 $47,981,878 $23,962,487 49.94% 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 7 City General Fund Expenditure by Budget Category,FY 2025 The dollar bill tool befOw shows the Categories in Which the selected city Spends,or cnvests on,from its general fund.It represents how much Of every dollar of revenue that comes to the city goes to each of the functions below by budget category.For example.if a city spends 35 cents of every general fund dollar on public safety,the dollar boll will show 35 cents for that category.Property tax revenues makeup a significant portion of genera,fu-d re,oenxes kabout 54'tr for fiscal yea 2025) FOr more detailed informs. eh aes and expenditures by category,see the C,ry General Fund Revenue and Expendiruvesrepor.5 a' +cta t f a"•.4;� ?iL%.+'v.rn�". Use the drop down men,to the r orot toset,ct:a city. 2025 T ex.0e T' 454 154 144 114 t 54 •Cc-Q,.'atx w;`•ss ore ra:r•aedt:ta ntetae',,,rcn may a3J 44,7a[cfs so woos..eraor.'sea trvn0Z.Cd bates:u2e'ewa 041104r• •..•.1a"n--e•.t Budget Category outoxe Safety Carmur,;y&Ecana-~-:c vTr+eioe�-e+< 1.� ra ■cease a ec.<<.n en: earhasar.a s<,=<ea IOWA STATE UNIVERSITY 7eot 5ervlc< IOWA f:xtcnslon aril Outreach ®Transfcn �'.aocsl crater,, LEA , C Common Y ,W Economce Davebpment Pools Wares OE C l TITS contac<f e _Tr-ace wrtn aces<tons mope ee[aeisa.+Tee sarrce¢ra.e�a�,pr=!v p<nera+tuna-zvr�„es r�s�t trte c^ate:Om'o,r. This fnscRutlon is en eoualoPPo[nnRy erovider.for:he ful, Average City General Fund Revenues by Source I m www ex•ena=o ,:<ate.ewalvcrss:^..'e>teuo..inc+nries,Or 8 4 1/31/2025 Fund Balances as of June 30, 2024 9 9 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. • We currently hold an Aa2 Moody's bond rating. Moody's methodology changed in 2022.They no longer focus solely on unrestricted general fund balance.They now have an equation that looks at all available fund balances and liquidity: (Available Fund Balance+Net Current Assets)/Revenue • Our current unassigned fund balance is at 37.1%as of June 30, 2024. 10 10 5 1/31/2025 General Fund Balance as a % of Revenues 7000% 60.00S6 _.. __.... 50.00% 40.00"b 30.0016 -..._._.,. ... __. .._. _.__...._ .._........ _.._.._.. _ __.. O0036 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2021 33M TOTAL MINI RESTRICTED/NON SPENDABLE MI6 COMMITTED .'UNASSIGNED •R=ASSIGNED 11 11 General Fund Balance as a % of Expenses 60,E 500 0G0% __.._ ._ .. ,._... _... ...... .... 30.00% 0.00% __.. ...... ... .. _ ._�. ...._. ..__ ._.... 2013 2019 2015 2016 2012 2018 2019 2020 2021 2022 2023 2026 um TOTAL 3nso RESTRICTED/NON SPENDABLE me COMMITTED —UNASSIGNED —.ASSIGNED 12 12 6 1/31/2025 Financial Performance Factors Per Moody's New Methodology FY2020 FY2021 FY2022 FY2023 Available Fund 27.4% 26.1% 29.0% 31.3% Balance Ratio Liquidity Ratio 75.0% 65.7% 66.5% 88.9% *These ratios come directly from Moody's after their evaluation and rating assignment. FY2024 is not included in this chart. 13 13 FY26 Budget Process and Tentative Timeline 14 14 7 1/31/2025 FY26 Budget Process • Capital Improvements Program —Meetings with departments happened in December and January.This information was finalized at the end of January. • The Finance Department developed the base personnel budgets based on FY25 staffing. Information was provided to departments for review. • Finance has calculated the base budget using updated personnel and current year property valuations. Estimated FY26 contractual information (retirements, new hires,pensions, health care costs and pay rates)were also included. • General Fund Departments were not allowed to enter any budgeting changes for the FY26 Budget. • Departments were directed to review current budgets and if they are in the general fund to email line item-only changes to Finance to enter. • If the department is funded by other revenue than property taxes,they were able to make adjustments to their budgets as needed for Department Requests. • Budget options—Staff,council members, and the public are encouraged to submit additional funding requests to the Finance Department before February 19,2025. There may not be adequate time to consider suggestions made after the date for the FY26 budget. We must have ALL increases incorporated into the proposed tax levy publication. • Budget work sessions can be scheduled as needed. 15 15 FY26 Tentative Budget Timeline • Currently planning to set date of pre-levy bond hearings on February 17, 2025 for March 3, 2025 • Council will hold bond hearing and adopt the pre-levy resolution that will allow us to bond for the next fiscal year's needs on March 3,2025 • All cities are required to hold a public hearing for proposed tax levies as its own meeting.The notice of public hearing, mailer from Auditor,and public hearing must all be completed before a city can set the date of public hearing for adoption of the complete budget • Currently planning to set date of proposed tax levy hearings on March 3, 2025 (can't exceed rate for certain levies after Auditor's mailer by March 15th and March 18th estimated hearing publication) for April 7,2025 • Have all budget information uploaded to Department of Management Website for proposed levy rates by 4:00 PM on March 5th. • Council holds proposed tax levy hearing, adopts resolutions for final budget publication and sets final budget hearing on April 7, 2025(can't exceed rate or expenses by program after publication estimated at April 8th)for April 21, 2025. Proposed tax levy hearing will be a special meeting as it can be the only Item on the agenda/discussed. • Council will hold final budget hearing and adopt resolution for FY26 budget on April 21, 2025 16 16 8 1/31/2025 FY26 Rollback Update and Property Valuations 17 17 Rollback Update • Reminder of the two-tiered rollback for commercial,industrial, and railroad properties: — Started in FY24,the first$150,000 of all commercial,industrial,and railroad properties are taxed at the residential rollback rate.The remaining amount over the $150,000 will be taxed at the 90%rollback. • Multi-Residential properties are no longer a separate classification and are taxed at the residential rate. • Residential rollback is 47.4316%for FY26 which means we will receive more residential taxable value even if we saw no actual increase in the 100%values. Increase of 1.0888%from FY25. • Agricultural rollback is 73.8575%for FY26 which means any ag land we have, we will receive more taxable value even if there were an increase in the 100%values. Increase of 2.0205%from FY25. 18 18 9 1/31/2025 Property Tax Percentages 100.00% 95.00% 95 00°0.00990.00590.00390.00%0.00°80.00590.00390.00560.00160.00390.00% 90.00% _... 90.00% 86.25. 80.00% 82.50% 78.75% 70.00% 75.00% 71.25% 67.50% 60.00% 63. % 54.40%55.73°b5.64°S6'945t5.62463 5.0746.411 .6.4 46.34°67.43% 40.00% FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 — Residential —40—Multi-Residential —s—Commercial• *Commercial properties are taxed at the residential rate for the first$150,000 and the remainder is taxed at 90%. 19 19 Change in Assessed Valuation by Class FY 24-25 FY 25-26 Change %Change Residential 3,561,388,145 3,597,660,145 36,272,000 1.02% Commercial 754,888,491 762,152,225 7,263,734 0.96% Industrial 127,217,107 128,152,462 935,355 0.74% Utilities and Railroads 278,418,645 299,425,113 21,006,468 7.54% TIF 636,399,637 651,616,148 15,216,511 2.39% Less Military/Homestead (27,484,071) (46,100,028) (18,615,957) 67.73% Sub-Total 5,330,827,954 5,392,906,065 62,078,111 1.16% Ag Land 21,043,849 21,175,459 131,610 0.63% *FY2024 Multi Residential is no longer a separate classification,it was combined with the Residential Classification. 20 20 10 1/31/2025 Change in Taxable Valuation by Class FY 24-25 FY 25-26 New Growth Change %Change Residential 1,598,198,011 1,653,729,910 288,453,036 55,531,899 3.47% Commercial 557,982,742 566,461,695 41,013,143 8,478,953 1.52% Industrial 104,477,295 104,808,507 (997,710) 331,212 0.32% Utilities and Railroads 83,385,359 83,320,470 (373,401) (64,889) -0.08% TIF 620,394,199 634,646,620 231,332,156 14,252,421 2.30% Less:Military/Homestead (27,484,071) (46,100,028) (23,201,294) (18,615,957) 67.73% Sub-Total 2,936,953,535 2,996,867,174 536,225,930 59,913,639 2.04% Ag Land 14,957,216 15,492,445 (912,943) 535,229 3.58% Total 2,951,910,751 3,012,359,619 535,312,987 60,448,868 2.05% *FY2024,Multi-Residential is no longer a separate classification,it combined with the Residential Classification. 21 21 Consolidated General Fund Levy Calculation CONSOLIDATED GENERAL FUND LEVY CALCULATION CGFL Max Rate CGFL Max Dollars Non-TIF Taxable w GE Taunts Growth•. FY 2021-2025 budget Data I 5851CC° I I 52C NC.5<a I I 2 216.5E9255 I I i._ , I Limitation Percentage I C?b CGFL Max Rate CGFL Max Dollars Revenue Growth ti CGFL for FY 2025-2026 I 6591055 I I $21 Cs7265 I ( 197% I *We were not limited by growth for the CGFL rate,which means it can stay$8.91 for FY26. This gives us about$400,000 more than last year to work with in our operating budget to cover a small portion of the salary increases for employees. 22 22 11 1/31/2025 City of Waterloo Valuation Trends 6 TIF 100%ASSESSED 5—-a-TAXABLE W/O TIF — — -x-TAXABLE W/TIF z z 0 4 — m z 0 3— d .+(— d > £t 2— — This is a 1.99%increase in total assessed value and a 1.91%increase in total taxable value with TIF 1— — — — — This is a 2.19%increase in total assessed value without TIF and 1.91%increase in taxable value without TIF. 0 15 16 17 18 19 20 21 22 23 24 25 26 FISCAL YEAR 23 23 illl MIL Eit , ,) 4 i Questions? Contact: Bridgett Wood Finance Director Bridgett.Wood@Waterloo-IA.org 24 24 12