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HomeMy WebLinkAboutCouncil Packet - 3/3/2025CITY OF 44iLTERLO 0 IOWA THE CITY COUNCIL OF WATERLOO, IOWA WORK SESSION TO BE HELD AT Harold E. Getty Council Chambers Monday, March 3, 2025 4:15 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 the February 17, 2025, as proposed or amended. 4:15 p.m. Discussion of FY2026 budget. Submitted by: Bridgett Wood, Finance Director ADJOURNMENT Kelley Felchle City Clerk Page 1 of 10 February 17, 2025 COUNCIL WORK SESSION Harold E. Getty Council Chambers 4:25 p.m. Roll Call. Members present: Mayor Pro Tem Ray Feuss in the Chair. Roll Call: Mr. Boesen, Mr. Nichols and Mr. Feuss. Ms. Creighton -Smith arrived at 4:37 p.m. and Mr. Chiles arrived at 4:46 p.m. Mr. Simon and Ms. Wilder were absent. Approval of Agenda, as proposed or amended. Boesen/Nichols that the agenda as proposed be approved. Voice vote -Ayes: Four. Motion carried. Approval of Minutes of the February 3, 2025, Council Work Session as proposed or amended. Boesen/Nichols that the minutes of February 3, 2025 Work Session, as proposed, be approved. Voice vote - Ayes: Four. Motion carried Update from the Grout Museum. Margaret Moye, Grout Museum Director, shared that she has been director of the museum for the last six months and provided an overview of activities that have occurred at the museum during that time and various upcoming events and projects. Discussion of providing sidewalk sand. Mr. Boesen commented that the city in years past provided sidewalk sand at city parks for citizens to use. The program was somewhat discontinued, though he was able to get sand both last year and this year through Leisure Services. He shared that the Public Works Director does not want to provide sidewalk sand and the comment he received was that the city does not provide public funds for private use. Mr. Boesen gave an example of when the city provides land for a dollar, so the developer can move forward with a project, stating that this is providing public funds for private use. Mr. Boesen shared that the cost of the sand would be about $300, and asked for council support with a resolution to have sidewalk sand provided at four city parks, two on each side of the river. Mr. Boesen shared that he received concerns from Mr. Chiles that the sand would get into the storm sewers. Mr. Nichols questioned if this would be a one-time load or if it would continue to be replenished. Todd Derifield, Interim Leisure Services Director, shared that in the past the left -over sand was picked up by Public Works and used for construction projects. This year a larger load was Page 1 of 2 Page 2 of 10 purchased, and the price went up to $110. He confirmed that the loads did not have to be replenished. Council discussed the matter with Todd Derifield. Mr. Boesen commented that he would like to hear if there is support from the other city council members on whether they want to move forward with this. Ms. Creighton -Smith supports providing sand for the citizens whether it be at four locations or just one. Mr. Nichols commented that he would support the sand but that it does not necessarily need to be in four locations. Mr. Feuss questioned the amount of people have contacted Mr. Boesen or Mr. Huting. Mr. Boesen shared that it is between 8 and 10 people that have reached out. Mayor Hart questioned why the practice stopped and who managed the program. Randy Bennett, Public Works Division Manager, explained that the public works department used to take care of sand distribution. After further review of the program, it was determined that this practice was not a proper use of taxpayers' funds and that is why they stopped. This was confirmed by the city attorney and the League of Cities. Mr. Chiles commented that he does not believe $110 is a problem to spend if the citizens need it and questioned which department would spearhead this. Mr. Boesen commented that he would support spending $110 on one location with 13 tons of sand. ADJOURNMENT Feuss/Nichols that the council adjourn at 4:54 p.m. Voice vote -Ayes: Five. Motion carried. Kelley Felchle City Clerk Page 2 of 2 Page 3 of 10 3/3/2025 FY2026 PROPOSED LEVY RATES CITY OF WATERLOO, IOWA March 3, 2025 I II l'l II,1111. �,., �., + i1a: CITY OF 4!Vj4TERLOO Community of Opportunity 1 2 1 Page 4 of 10 3/3/2025 Oollgr Request with ... Limit .................. Purpo!9..................... ........................,.. UtiIHy Reykaement.... 891000 Combined General Fund 5 21,047385 Non -Voted Other Permissible Levies e95000 Opr & Maint publicly owned Transit avow Aviation Authority (under Sec-330A-15) u 0, Main Liability. property & self insurance costs M 2,679,018 Aes Su9900tOfaLOcal Emeria.MQmt.Comm. 402 93,284 Voted Other Permissible Levies 151x00 Uniheo Law Enforcement 24 Total General Fund Regular Levies (5 thru 24) 25 25.441.682 300375 Ag Land 26 .............. 46,535 Total General Fund Tax Levies (25+ 26) 27 25.48821700. Special Revenue Lev es Arra Nw Police & Fire Retirement 29 ..., ,,. 5,203,170 Arr,hl.0 FICA & IPERS (if general fund at levy limit) 30 .,, 2,633 403 AIM 51e4 Other Employee Benefits 31 12.417,057 Total employee !Benefit Levies (29,30,31) 32 20.303.630i i Valuation As R.q WO Gas & Elec Without Gas & Sec SSMEI1 as .................._...�......_...___al._.._......_........_......._..........__,.... 34 SSMD2[u.,»......................�....,.. 00 ..................,,.�....,..-.�.,.�»...�. 21 SSW) 3 w.....„_..._..._.._...__..._..,_, 1., ..._.._. 36 SSM04 w .....______...__..�.�� at37 SSMU 5 w nl 555 S5M06 w 5514107 ro, la, att 1 621„995,'p 55M08 r, Total Special Revenue Levies 39 20.303.630::i::ii:i i 19,644,518:;isiii::iitF$ii:£'iss;;;;'.>` Property Taxes 20,364,118 ,1,569340 ',3 0 2, 502 048 90 256 24.615 762 4r 24 6621S', 5 082 642 2547915 12.013,961 19,644,518 Ras $8.91000 50, 68664.,, 43 ..................�. 52 S113411 , 465 SO 03949 Do Not Add „4,2,223b3 31.11460 35.2565_ Arm N43 Debt Service Levy 76.10(6) 49 9.954.114 067500 Capital Projects (Capital Improv. Reserve) 41 Total Property Taxes (27+39+40+41) 42 55.745.961 40 9,699,413 :; : 70 $3.32151 45 00 42 54.006,228 0::( 72 $22.60690 3 r"""3324 (8) (el CITY OF ADOPTED waterloo Dopaimrnt c11.4 eam. 2026 Fiscal Years BUDGET SUMMARY YEAR ENDED JUNE 30, GENERAL lC) SPECIAL REVENUES (D) TIF SPECIAL REVENUES (E) DEBT SERVICE (F) CAPITAL PROJECTS (G) PERMANENT H ROPRIETAR1 I( BUDGET 2026 (4) RE4STIMATED 2025 _—Ix) ' 21144465 _ 21,786 053.... 1,519I05 2,448,000 ACTUAL 2024 (L) 13664,602 23423.923 1,677,712 8.359,115 TFR.wraes 5;999,E! 8,794 620 1484.520 ,,.,P., 12,659112 17,500 659.180 23902048 :.r m „,;1% w 100,000 ,1,9 ,;t,. :;j; s -- �:.« „ „,;1 0 F i .... "? ...': 12.500 215,000 23,902.040 21 718,433 1,514,520 2,714,680 hh.6014,.s 6 266,701 „, „, ,„ s 25,000 0 „ µ 0 .. .. .---_------ Lhrws&Peahs7 , UsedM LadPoo5 8 1.715.500 t+ayovemm mi 9 2,153.220 39.841,134 164.473 346.605 45.792175 '0 1.736,579 90,024,177 76,395.232 39.466,112 Chaves for Feee69aude 10 13877.261 399400 `' '03 0 0 26 001,346 40,279.007 39.254,131 41,276.122 Sois010.045171.5 it 245000 0 < 0 0 77 10,000 255,000 510,009 374,334 _.ree.,.s 12 8.493.773 102 250 ::-,':„x s::. 0 2_300,000 0 10,896,023 11940 279 sie-Tord9waas 13 — 61426.191 „_,,. 73323,394 24,156,521 10,335,119 48092.175 .,_..,,—, .'975,416 245,309,116 _ 226.396576 —14_4fi2.616 188029,798 °tha Fna.ing Swops: ?:, 4...1 , r :':':,x1 ,1 M. 3 "'w Total n,nawsln 14 15315162 5.000,000 0 8,891,684 12.500,00" 0 41,706,846 51,859,098 25774,956 pwueds of DebR 15 0 0 0 0 6.00000,... ' 000.000 13,000.000 67.698,102 32.422,623 mowed o1e,o+,lA ers,io 16— .—....�_..�.m.._.._— 80,000 0 0 a 0 5,001 90,000 90,000 t91,795 Total Revenues and 041er5owoes 17 76.826.353 78.323.094 24.17. - 19.227.403 6( `- 175 0 1980.416 300,105.962 346.045.776 246.419.167, EaendEures&Other Fanoina Use ;3:7 3433: :31::.k...:. 'i :' �:, Pud45aleov 18 41,014197 5,264,324 0 ::<: 46298,521 44,707,357 42.521,648 PudcWaks 19 7.479,927 34,557276 _ _ - 42,037,203 44665,639 32,596085 Medh.dsos45enrce ....._......_.... 20.....412763...---- --0._........_. .._....... :£ 412763 397.202......... 372,010 Cul..and Re.takn 21 14,023.261 0 0 14.023,261 13.548,997 12,282,293 CommurAyadEcnn.acawekpmen, 22 4,409506 17116,680 382 3 t: 26353.098 25.840,458 17,653,528 c.n.,1Govemmear5l23 13,422.123 17,472 _._ 0 x-'13 13,439,595 12.841,409 13461747 �..—_ 24 os o "—. 0 _._. Q_..._. _._. ';3 19066712.— 15992120,_14674,659 Cap3a1Prgear 25 0 14,540,000 0 93982.175 134.437,585 47,578,080 Ted Gaaenmenr Anddre, Evpendha. 26 80761,777 71.515752 3326-._ - d 254,013,318 292,430,757 177,140,250 e0600213pepo0,s, Esepr3e615r 27 ., .., : _.., 37.919.987 37913.987 43071767 31,966464 Iota Gov Pr Bus Type 5enendxures 26 80761.77,' 3.826,902 0 37.919.967 291.933.305 335.502.564 209.096,714 Teta Tandem out 29 5,300.006 356 19,086.372 0 2116.076 41,706,846 51.85 V.R. 25,774,956 TotalT,ALLEapendnute56udTtaa7ws 30 86.061777 -'; 720.1502,013.274 — 2 - 19.066 ' .........1 _,1036.(163 333 649.151 _ " 387 3E', "" 231,871,610 Eo.ofev. e50iw9.w.,0o 31 Rkda month w7rruknG:n 37 Bttrin Fund era,e.aui11 33 42.465.213 32,112,212 4160514. 461027 15.772.6T.: 0 28.611.381 123,62. 164938.892 153.39" : ndlm Fund B.1.,c. dun.10 34 33729794 23715156 5.473761 641718_ 35226: �. 0 23 555 734 90 OK • 123623006- 1649333.. 4 2 Page 5 of 10 3/3/2025 FY2026 Proposed Levy Rates Non-Ag Change 2.699% Ag Change (.001 %) Tax Rate Comparison -Current VS. Proposed Residential property with an Current Year Budget Year Percent Certified Proposed Change Actual/Assessed Valuation of $100,000/$110.000 2024/2025 2025/2026 City Regular Residential 1.023 1,184 15.74 Commercial property with an Current Year Budget Year Percent Certified Proposed Actual/Assessed Valuation of 5300,000/$330,000 2024/2025 2025/2026 Change City Regular Commercial 4.515 5,289 17.14 Nate:Actual/Assessed Valuation is multiplied by a Rollback Percentage to get tothe Taxable Valuation to calculate Property Taxes Residential and comrnerdal properties have the same rollback percentage through S150.000 of actual/assessed valuation. 5 Program FY2026 Proposed Levy Rates Percentage of Tax Levy Portion Levy Police and Fire $ 14.34057 63% Debt Service $ 3.32151 15% All Other Services $ 5.02482 22% Total City Levies $ 22.68690 100% Total $ 22.68690 6 6 3 Page 6 of 10 3/3/2025 FY2026 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 $ (0.05360) $ 0.866700 $ 0.118600 $ 2.92577 $ 0,174780 $ 0.99257 $ 5,024820 7 7 General Fund City Services* Function Proposed Levy Rate Expenditures Public Safety Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government $46.3 million $7.5 million $0.41 million $14.0 million $4.4 million $13.4 million *Funded primarily by Property Taxes 9 9 4 Page 7 of 10 3/3/2025 Debt Service Fund Bond Interest $2,964,100 Admin Fees $14,250 $12,010,000 Bond Principal For the Year Ending 6-30-2026 With the Proposed Levy Rates, property taxes will fund $9.9 million for FY2026, 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 8 of 10 3/3/2025 How are property taxes calculated? • The State continues to increase the residential roll -back, resulting in 47.4316% of a home's value being taxable for FY2026 • 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 47.4316%. 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 FY2025 Certified FY2026 Proposed Assessed Value $ 100,000 $ 100,000 Times Rollback 0.463428 0.474316 Equals Taxable Value $ 46,343 $ 47,432 Divide by $1,000 46.3428 47.4316 Times Total Tax Levy Rate $43.12949 $43.74201 Equals Total Tax Bill $1,998.74 $2,074.75 City Portion of Tax Bill $1,022.99 $1,076.08 Projected Annual Incr (Decr) $ 15.42 $ 53.09 Percentage Incr (Decr) 1.51% 4.93% 13 6 Page 9 of 10 3/3/2025 Proposed Budget Input Budget Simulator https://waterloo.abalancingact.co m/fy-2026-proposed-budget FY 20-26 Proposed Budget You are in deficit_ titC 1 Public Solon SAL.. 0.ilkWerks 9 S. HMpSaflW Setc,,142 CYMei Ileass S13&. com-i5T4t am*o...lwn.mlSu- lavanue imec53S, lCheeps..rme6Permns505.]- used sum moron so O eem..inage..oeoeeac S q.wem...a.nme®5edu O titmteltentorlInicatono commie* R iron. la StS.. ITau ...aaeswwlla, Soot in es too**amaa. Tar S+aaerou.eloopoion ram Sao Tw 14 14 Bridgett Wood Director of Finance Bridgett.Wood@waterloo-ia.org 15 Page 10 of 10