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Home My WebLink AboutCouncil Packet - 4/7/2025CITY OF 44iLTERLO 0 IOWA THE CITY COUNCIL OF WATERLOO, IOWA WORK SESSION TO BE HELD AT Harold E. Getty Council Chambers Monday, April 7, 2025 4:50 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 March 17, 2025, regular Council Session as proposed or amended. 4:50 p.m. FY26 Budget Updates. Submitted by: Bridgett Wood, Finance Director ADJOURNMENT Kelley Felchle City Clerk Page 1 of 30 4/7/2025 FY2026 PUBLISHED BUDGET REVIEW CITY OF WATERLOO, IOWA 4411 April 7, 2025 r -1 • _ '.. it oo „„. seems �� CITY 4JTERLOO Community of Opportunity 1 Outline 1. FY2026 Published Levy Rates 2. Balancing Act Analytics 3. FY2026 Proposed Certified Budget 2 2 1 Page 17 of 30 4/7/2025 FY2026 Published Levy Rates 3 3 Program FY2026 Published 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 4 4 2 Page 18 of 30 4/7/2025 FY2026 Published Levy Rates Public Works $ 0.866700 Health & Social Services $ 0.118600 Culture & Recreation $ 2.92577 Community & Economic Development $ 0.174780 General Government $ 0.99257 Total Other $ 5.024820 5 5 FY2026 Published Levy Rates Non-Ag Change Ag Change Tax Rate Comparison -Current VS. Proposed Residential property with an Actual/Assessed Valuation of $100,000/$110.000 City Regular Residential Commercial propertywith an Actual/Assessed Valuation of $300,000/$330,000 2.699% (.001 %) Current Year Budget Year Certified Proposed 2024/2025 2025/2026 Current Year Budget Year Certified Proposed 2024/2025 2025/2026 Percent Change Percent Change 15.74 City Regular Commercial 4.515 S.259 17.141 Nate:Actual/Assessed Valuation is multiplied by a Rollback Percentage to get to the Taxable Valuation to calculate Property Taxes Residential and commercial properties have the same rollback percentage through $150.000 of actual/assessed valuation. 6 3 Page 19 of 30 4/7/2025 Balancing Act Analytics 8 8 Sessions by City Based on where Google Analytics thinks the user is when accessing the simulation. Other Cities: 60 (33.62%) '\ Austin: 4 (2.25%) (not set): 5 (2.81%) Omaha: 7 (3.93%) Cedar Falls: 10 (5.62%) Waterloo: 58 (32.58%) San Marcos: 34 (19.1%) 9 9 4 Page 20 of 30 4/7/2025 What can the City of Waterloo Improve? Answers provided: • Maintain our public library! It is a place for everyone, and belonging is important in this day and age. • Walkability and hiring qualified people within of government among friends and supporters of the mayor. It is increasingly clear from the outside that not enough folks are on the team who are willing to counter ideas. Diversity of perspective makes for more holistic decision -making. • I believe that the City of Waterloo should have a strong public library, and that can only be possible while funding it adequately. The power of Waterloo is in its people, and libraries are people's palaces for knowledge, information, and recreation. • Support for people, especially the home insecure • Implement a volunteer fire department. Waverly does it. About 80% of the U.S. population is served by volunteers. Also, compare the public library's staff/circulation ratio with other Iowa Public Libraries. You'll see that the library is over -staffed. Close the second floor and run all services on the first floor. You can get by with fewer paid staff and might even be able to increase circulation. Too many staff sitting around playing on the computers. • Manage money better and stop increasing our already ridiculously high taxes. Government is not for handouts to friends who go gamble it away, if you can't manage money, you don't get paid. • Lower property taxes • Cut some of the spending. Taxes from the city went up 3% last year, and another increase • Lower property taxes will bring more people and businesses to Waterloo. Businesses and residents are already struggling without the sharp increase in property taxes from year to year. 10 10 Revenue Suggestions Some decreases/increases examples received: • 1 out of 15 submissions wanted to use $750,000 in fund balance to lower the tax rate. The rest said no, do not use the fund balance. • 5 out of 15 wanted to decrease taxes • 7 out of 15 wanted to decrease the police budget, the rest wanted to increase it. • 6 out of 15 wanted to decrease the fire budget, the rest wanted to leave it the same • 2 out of 15 wanted to decrease the ambulance budget, 2 wanted to increase, rest wanted to leave it the same. Suggestions included: • Privatize Young Arena and the Sportsplex • Lower taxes will bring more people to Waterloo. The taxes here is to high for the amount of businesses and rec activities in the city. 11 11 5 Page 21 of 30 4/7/2025 Other Expenditure Suggestions I would love to see the City invest in updates to our public library. The new renovations to their Youth area are nice, but some parts of the building look shabby and like they haven't been replaced or updated in many, many years. I appreciate the work of our officers, but since they are getting new facilities in the new City Hall, I think the other city departments should get a leg up in this year's budget. Public libraries are an essential part of a healthy community. They are a welcoming space to diverse populations, provide access to information, internet connection, education, literacy, digital literacy, community resources, job search and career support, programs, and cultural enrichment. The library benefits the community by providing for those most in need. At the same time as being a vital community resource, it's a great place for everyone to visit and scoop up and share the best new novel- reduce, reuse, recycle! • Reducing policing budgets and redirecting them toward ending poverty is a proactive way to reduce the need for police intervention. In my opinion, the decrease in police budget should not affect programs that are focused on harm reduction, like crisis social workers, de-escalation training for officers, trauma -informed practices, etc. • Infrastructure to house folks struggling with housing insecurity. Take from the police and invest in real public safety • Place efforts into people and building, not policing. Supporting people with naturally lower needs for police. • Budget cuts are needed and okay. Not every increase should fall on the taxpayers every year. There are city buildings that could use repair and upkeep. 13 13 Other Expenditure Suggestions Continued • Providing more support for housing can help decrease the traumatic effects of poverty and homelessness. Housing first initiatives would be my first choice for some of the additional funds. • Some (maybe all because of the Sportsplex being a newer addition in need of less repair) of the additional funding could go to creating programming where community members who live below the poverty line have more access. • Providing green space is an essential in a community for encouraging mental and physical wellbeing. The additional funding could go toward providing programming and community events where those who live below the poverty line have access. • Some of the additional funding could go to creating programming where community members who live below the poverty line have more access. • Please, help the people of Waterloo, especially the home insecure. Give them services and resources 14 14 6 Page 22 of 30 4/7/2025 FY2026 Proposed Budget 8 15 Prog ram FY2026 Proposed Budget Proposed Tax Levy Portion Police and Fire Debt Service All Other Services Total City Levies Published Tax Levy Portion Change from Published $14.34057 $ 13.89168 $ (0.44889) $3.32151 $ 3.20930 $ (0.11221) $5.02482 $ 4.69062 $ (0.33420) $22.68690 $ 21.79160 $ (0.89530) 9 16 7 Page 23 of 30 4/7/2025 FY2026 Proposed Budget Published Tax Proposed Tax Change from Program -Breakout of Other Levy Portion Levy Portion Published Building Inspections Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government ($0.05360) $ (0.05607) $ (0.00247) $0.86670 $ 0.79490 $ (0.07180) $0.11860 $ 0.11286 $ (0.00574) $2.92577 $ 2.78321 $ (0.14256) $0.17478 $ $0.99257 $ 0.16425 $ (0.01053) 0.89147 $ (0.10110) Total Other $5.02482 $ 4.69062 $ (0.33420) 10 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 Projected Annual Incr (Decr) Percentage Incr (Decr) FY2026 FY2026 FY2025 Published Proposed Certified $ 100,000 $ 100,000 $ 100,000 0.474316 0.474316 0.463428 $ 47,432 $ 47,432 $ 46,343 47.4316 47.4316 46.3428 $43.74201 $42.84671 $43.12949 $ 2,074.75 $ 2,032.29 $1,998.74 $ 1,076.08 $ 1,033.61 $1,022.99 $ 53.09 $ 10.62 $ 15.42 4.93% 1.03% 1.51% 18 18 8 Page 24 of 30 4/7/2025 FY2026 Proposed Budget Non-Ag Change Ag Change (1.27%) (.001 %) la% RNr l oririwd urea S S. emptied Rokirntul propntr wall an :1ctua1 t ssnl5ilurtl.1...: SIIlU.01nS 10.000 I orrrot1ru ( crttGrJ I:4?0 4 Iludgri 1ru huimrd 20;4;0:6 Prrtfnl (huI Y (t Rr:ul. Rc>:Jrnaal I,0:1 I,Ii' l....1l11.3,alix:mNlchIr. .4Kwl.l.tc.4d1alutwnr 1 h}Ilt1Yl \i dlIrp I'urrrntIra (trufJrd :0:4.:0:5 Btdgnlest Proposed :O:k2016 PerrrM iha� r (mkctiularl.mtal..al 4,jl; >uyI 12• .er :lnut .luesud 5aluslnxt u tnulupltrl M a RoRh►t Prnemage to get to the tatahle 4alumxm ru:aleulate Property aterntul aral.omanrnlal part: h.n c the , n n11ha, l p r cmagr *roust) S I50.000 of actual at+nxd %alumx n. 19 19 FY2026 General Fund Budget Impacts at Proposed Budget Net Change in General Fund Property Taxes Net increase in personnel expenses $1,646,638 Net decrease in other expenses ($1,733,556) Net decrease in revenue $703,702 Net increase in use of fund balance $(975,000) Total Net Decrease in General Fund ($358,216) Property Taxes 23 23 9 Page 25 of 30 4/7/2025 FY2026 General Fund Budget Impacts at Proposed Budget Net Change in Property Taxes Decrease in General Fund property taxes Increase in Debt Service Fund property taxes Overall Net Increase in Total Property Taxes ($358,216) $893,904 $535,687 24 24 How are Capital Project Funds used? $2,530,400 $5,750,000 3% 6% $1,500,000 2% $3,050,000, 3% $27,500,000/ 30% $42,175 0% $37,000,000 41% 4,040,000 15% For the Year Ending 6-30-2026 Funded by TIF, Bonds, FAA Funds, Grants ■ Streets & Trailways ■ Traffic Improvements Other TIF ■ GO Issue Fiber Backbone Parks Airport 25 25 Page 26 of 3010 4/7/2025 Sewer Fund Budget Debt Service for Sewer System Improvements $5,687,598 22% System Improvements $9,670,000 38% For the Year Ending 6-30-2026 Funded by Sewer Fees and SRF Loans Plant & System Maintenance Operations $10,395,862 40% 19 26 Storm Water Fund Budget System Improvements $3,900,000 68% System Operations & Maintenance $1,425,425 25% Street Sweeping $425,152 For the Year Ending 6-30-2026 7% Funded by User Fees 27 27 Page 27 of 3011 4/7/2025 Sanitation Fund Budget Equipment Animal $800,000 Control 11% $506,670 Garbage & Yard Waste Disposal, Recycling & Neighborhood Clean-ups $5,532,592 73% For the Year Ending 6-30-2026 Funded by User Fees 7% Code Enforcement $708,129 9% 28 28 Snow Removal $1,859,792 15% Road Use Tax Fund Budget Forestry Right -of Way Operations $1,217,299 10% N Engineering $1,548,524 13% Streets & Bridge Repair $2,100,000 17% Street Maintenance Traffic Operations $2,874,144 $2,026,645 17 /o Street Lights $515,000 For the Year Ending 6-30-2026 4% Funded by State Fuel Tax Traffic Signals $108,150 1% 29 29 Page 28 of 3012 4/7/2025 Local Option Fund Budget $1,200,000 6% Transfer Out $1,284,239 6% Unimproved Street Repair $845,660 4% Engineering For the Year Ending 6-30-2026 Funded by Local Option Taxes $17,400,000 84% Street Repair & Construction 23 30 Federal Block Grant Funds Budget Administration & Other $2,547,481 28% Neighborhood Services $99,411 1% For the Year Ending 6-30-2026 Funded by Federal Block Grant Funds Housing Rehab & Construction $6,561,839 71% 24 31 Page 29 of 3013 4/7/2025 Federal Housing Funds Budget Down Payment & Other Assistance $70,000 1% $398,180 5% Ridgeway Towers Senior Public Housing Administration & Other $1,168,380 15% For the Year Ending 6-30-2026 Funded by Federal Housing Funds Housing Assistance $6,178,620 79% 25 32 Questions? Please contact City Hall to speak with Mayor Hart or Bridgett Wood with more questions. A special thank you to Mayor Hart, the City Council, the Finance Department Staff, and all City departments for their work to develop the budget and for the service they provide to our citizens year-round. 26 33 Page 30 of 3014