HomeMy WebLinkAbout01.20.2026 Supplemental Documents City of Waterloo
Finance Committee Preliminary Draft Invoice Report
For January 12 2026 Approval
Finance Committee Accounts Payable Open Invoice Report Total
As of Thursday, January o8 , 2025 1,879,099.79
Thursday Total
Add:Work Comp Claims 5,940.85
Add: Wellmark 410,814.72
Add: Health Equity 16,455.65
2,312,311.01
Housing Authority Assistance EFT's 7,283.41
Housing Authority Assistance EFT's
Payroll 2,300,660.20
Bill Payment Total - Monday, January 12, 2026 4,620,254.62
City of Waterloo
Finance Committee Preliminary Draft Invoice Report
For January 20 2026 Approval
Finance Committee Accounts Payable Open Invoice Report Total
As of Thursday, January 15 , 2025 1 ,355,729.64
Treasurer, State of Iowa 149,232.44
Thursday Total 1,504,962.08
Add: Wellmark 153,422.60
Add: Work comp 13,118.74
Add: Health Equity 12,472.60
1,683,976.02
Housing Authority Assistance EFT's 9,069.32
Housing Authority Assistance EFT's
Payroll 153,349.92
Bill Payment Total - Tuesday, January 20, 2026 1,846,395.26
1/20/2026
FY 2027 BUDGET .,z ' s<, ', = * '-
INITIAL PRESENTATION . S - o,
CITY OF WATERLOO, IOWA _
January 20, 2026 - w '
711177171
gyp+ % >
it . f � � �,�
„ 4.
R.yyam` � �
```r•
. ,,,,,:,, ,,,,,,,„,""1,L, .,., , , .\,,...m, ,7,7,7,
-V 7 V i t�
,. y4TERLOO
1
Outline
1. FY26 City Revenues — Current
2. Fund Balances as of 6/30/25
3. FY27 Budget Process and Tentative Timeline
4. FY27 Rollback Update and Property
Valuations
5. Budget Simulator
2
2
1
1/20/2026
City Revenues
FY26 Update
3
3
Property Tax Revenue
Fiscal Year Budgeted 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 $23,723,369 99.44%
Fiscal 25-26* $24,550,511 $13,160,380 53.60%
* Revenues are tracking as nearly as expected (53%of total)
4
4
2
1/20/2026
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 $8,679,561 97.58%
Fiscal 25-26* $8,790,877 $4,499,860 51.18%
* Revenues are tracking nearly exactly as expected(51%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 $16,128,942 105.90%
Fiscal 25-26* $15,361,781 $8,360,256 54.42%
* Revenues are tracking nearly as expected(54%of total)
6
6
3
1/20/2026
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 $48,531,872 101.15%
Fiscal 25-26* $48,703,169 $26,020,496 53.43%
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 2026
The dollar bill tool below shows the categories in which the selected City spends.or invests in.from Its general fund.It represents how muc-
of every dollar of revenuetnat comes tethe c,ty goes to each of the functions below by budget category.For example,if a oty spends 35
cents of every general fund dollar on public safety.the doll.,bill will show 35 cents for that category Property tax revenues make no a
sign if;cant port ton of general fund revenues(about 54%for fiscal year 2026).
For more detailed information on general fund revenues and expenditures by category.seethe Oty General Fund Revenue end
Expenditures reports at y .i - t n s,e n sr, rd:cr-n.<.':i,Dl.�e•ao--,�
Use the drop-down menu to the right to select.city .__ .l
484 16q 154 94qt 6¢
•car.,ar.e awes a-. :erne rot-a,::.r;..,.,<>may See.,nrt.arc,.a gn,muter nr,aes rem,r:o0
sodgat C+taoory
■Public Safety r;k Camnnmrcy8 3co.ornicDexlo:ment IOWA STATE UNIVERSITY
■General Government neann a 5OC1 al seances
■Cat-,sere a Recreetron �)/� Gctcnst n and Outreach
Debt p.Service I E V V E Community and Economic Oar.bpment
pubic worxs ■capital protects LEAGUE
is Transfers O CITIES ,tK
c.mare r,^m._aa .tV.rlta weaver,
•^ .,re._,e-rapwe ea the ewes...,ewes..., This n n q ft,t.K,o is ar eual Oo,ort�ndypronoer.formefi.11
non-c,scrlmi,at ion statement or accomTOoatron inquiries.go
Average City General Fund Revenues bySource towww e-tensln-,lasts-n er,etive,,avaal
8
4
1/20/2026
Your FY26 Waterloo Taxpayer Receipt Tax Receipt
Public Safety $981.92
Police 0 $534.15
Ambulance 0 592.28
Community and Economic Development $11.1Z
Fire 0 5172.88 Planning and Zoning 0
Emergency management 0 52.69 Other Economic De,.elosre,t 0 _
Public Works 833.23 General Government 572.73
Metropolitan Transit System 0 543.11 Mayor and Council 0 56.86
Ecutpment Preventative Maintenance 0 512.22 Clerk and Finance 0 57.41
City Attorney 0 58.76
Wealth and Social 924.76
b�nan F.;,ts 58.76
Hunan Resources 0 514.15
Other General Gu.arnrent 0 536.37
Culture and Recreation $183.32
Librar;. 0 578.es Debt Service 3223.83
Cultural Arts 0 531 66 Debt Service 0
Grout museum 0 518.18
Total: 0 61r467.73
Parts 0 556.58
aireation(Golf 8 Sports)0 517.51
7 ntery 0 52.62
_in9 Arena 0 55.39
https://waterloo.abalancingact.com/fy26-waterloo-taxpayer-receipt 9
9
Fund Balances
as of June 30, 2025
9
10
5
1/20/2026
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 45.4%as of June 30,
2025.
• Typically, 25-35%is what we aim for in our unassigned fund
balance.
10
11
General Fund Balance as a % of Revenues
50.00%
40.00% P..
42.39%
41.8s%
30.00% —
22.37% 22.42% 22.04% 2L01% 20.17% 13.623 2L04 27.22%
20.00% i
1.3.585
10.0096 l
2014 2015 2016 2017 2013 2019 2020 2021 2022 2023 2024 2025
mME TOTAL MN RESTRICTED/NON SPENDABLE COMMITTED —UNASSIGNED —ASSIGNED
11
12
6
1/20/2026
General Fund Balance as a % of Expenses
70.00%
60.00%
50.00°b ...........
40.00%
37.128
23.78% 22.75 22.70% 21.44% 22.14%
�.- - 20.35% / 28.42A
20.D3X 18.33%
20.00% 22.94%
0.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
mon TOTAL RESTRICTED/NON SPENDABLE 9>l COMMITTED —UNASSIGNED ----ASSIGNED
12
13
Financial Performance Factors
Per Moody's New Methodology
FY2020 FY2021 FY2022 FY2023 FY2024
Available Fund 27.4% 26.1% 29.0% 31.3% 30.2%
Balance Ratio
Liquidity Ratio 75.0% 65.7% 66.5% 88.9% 87.7%
*These ratios come directly from Moody's after their evaluation
and rating assignment. FY2025 is not included in this chart.
13
14
7
1/20/2026
FY27 Budget Process and
Tentative Timeline
14
15
FY27 Budget Process
• Capital Improvements Program - Meetings with departments happened from
September-November. This information should be finalized by the end of January.
• The Finance Department developed the base personnel budgets based on FY26
staffing. Information was provided to departments for review.
• Finance has calculated the base budget using updated personnel and current year
property valuations. Estimated FY27 contractual information (retirements, new
hires, pensions, health care costs and pay rates) were also included.
• All Departments were not allowed to enter any budgeting changes for the FY27
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.
• All Departments were directed to send in their contractual agreements that need
to be considered in FY27 to Finance to review with the Base budget(Adopted
FY26 budget)
• Budget options - Staff, council members, and the public are encouraged to submit
additional funding requests to the Finance Department before February 13, 2026.
There may not be adequate time to consider suggestions made after the date for
the FY27 budget. We must have ALL increases incorporated into the proposed tax
levy publication.
• Suggestions can be submitted using Budget Simulator(more information in
later slides) 15
16
8
1/20/2026
FY27 Budget Work Sessions
Proposed Property Tax Levy—
Reviews Property Valuations This will be the levy rates
and Releases Budget mailed to people from the
Simulator for Public Feedback County Auditor
January 2.0,202 To.ay`"'
202616 Feb
Review of Public Feedback Presentation on the Budget
regarding our Budget for we plan to adopt on April 20,
FY27 2026
17
FY27 Tentative Budget Timeline
['member 23,2025-flccetved 20'_25-Pres e nf nwry'ft 12"-O0oo January 2rtfebruary It.2026
Va ottinns horn C2onty Pod to Vcln' n llpdafes to Ccuntd PamHudg P nM Gather Polio5 g& tl [
Departnwn s f_:Cho:p,e Requests Oudget S n:ulalor
Match 5,2026 Proposed Tax
Levy numbers due
on DePartm m of Mafugemat budg a Mfg n Maret2,2026 proposed Ian February l7-2T,2026- (e.t.a,Ib.2026-Present the
Cwtlml Autlrtw 51031 give
ce Levy res Pen : techan
make chimp,on fhe on Suggestion from 8t,get SimuFator
cannot Propertyta2P=geon the website
from March 5-15)
March 152026-County Auditor March I62026-...Me Date for March 30,tim-Hold lce Sweatt
muct nit ets of the levy Specials on the Propetto Monti lc 2o2e P bll;h the 5essinn for P ptttY(ax Wentchanges and hearing daces toadd Tat tem Hear mgon Match30, Nearing Parma on Newt,
rem,.Is 202E
April3fl,).026-Oude¢t must be
APrd6,2026-Renew the budget
met f d b' a and Apr1120 202E Vold hear ngtdr April 7,20 e Pula!h the b dgel that sr he adopted certified at
sub dtp Depa: err of Midget Ad option/levy Permeation adoption a:'ng inftm at on H` ksers d setthe date
bia and Pour000202m. 2 h ring to Cop th budget.on
Apr 20,2026
16
18
9
1/20/2026
FY27 Rollback Update and
Property Valuations
17
19
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 44.5345%for FY27 which means we will
receive less residential taxable value even if we saw no actual
increase in the 100%values. Decrease of 2.8971%from FY26.
• Agricultural rollback is 59.4401%for FY27 which means any ag land
we have, we will receive less taxable value even if there were an
increase in the 100%values. Decrease of 14.4174%from FY26.
18
20
10
1/20/2026
Property Tax Percentages
100.00%
95.00%
95.0 0 0.00%90.00%90.00%90.00%90.00%90.005690.00%90.00%90.00%90.00%90.00%90.00%
90.00%
90.00%
86.25%
80.00% 82.50%
78.75%
75.00%
70.00%
71.25%
67.50%
60.00% 63. %
56.94% , 56.92%55.07%56.41% %56.4
54.40°/55.73%55.64% 55.62/0 54,1
46.34%47'43%
44.53%
:::::
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27
—.—Residential --.—Multi-Residential . .—Commercial*
*Commercial properties are taxed at the residential rate for
the first$150,000 and the remainder is taxed at 90%.
19
21
Change in Assessed Valuation by Class
FY 25-26 FY 26-27 Change %Change
Residential 3,597,660,145 3,950,971,369 353,311,224 9.82%
Commercial 762,152,225 766,929,612 4,777,387 0.63%
Industrial 128,152,462 126,359,622 (1,792,840) -1.40%
Utilities and Railroads 299,425,113 296,694,037 (2,731,076) -0.91%
TIF 651,616,148 741,481,400 89,865,252 13.79%
Less Military/Homestead (46,100,028) (45,666,115) 433,913 -0.94%
Sub-Total 5,392,906,065 5,836,769,925 443,863,860 8.23%
Ag Land 21,175,459 26,482,030 5,306,571 25.06%
Total 5,414,081,524 5,863,251,955 449,170,431 8.30%
*FY2024 Multi Residential is no longer a separate classification,it was combined
with the Residential Classification.
20
22
11
1/20/2026
Change in Taxable Valuation by Class
FY 25-26 FY 26-27 Change %Change
Residential 1,653,729,910 1,686,211,915 32,482,005 1.96%
Commercial 566,461,695 557,315,209 (9,146,486) -1.61%
Industrial 104,808,507 100,612,162 (4,196,345) -4.00%
Utilities and Railroads 83,320,470 90,890,636 7,570,166 9.09%
TIF 634,646,620 722,498,851 87,852,231 13.84%
Less:Military/Homestead (46,100,028) (45,666,115) 433,913 -0.94%
Sub-Total 2,996,867,174 3,111,862,658 114,995,484 3.84%
Ag Land 15,492,445 15,557,379 64,934 0.42%
Total 3,012,359,619 3,127,420,037 115,060,418 3.82%
* FY2024,Multi-Residential is no longer a separate classification, it combined
with the Residential Classification.
21
23
Consolidated General Fund Levy Calculation
Canes GnN Fund trey Cakubom
CGFL Rate CGFIGrhrs NaaliLoMerGiE TsoEkG ae%
FY2d26 Budget Cat S 21.0c15 ixanrsu
LininGmPercent*
CCa Max Rxe Mt... Csars AwlreCr %
Max Marred
.CGF!fx FY M27 .. . ..
*We were not limited by growth for the CGFL rate,which means it can stay$8.91 for FY27.
This gives us about$242,439 more in the General Fund Levy than last year to work
with in our operating budget to cover a small portion of the salary increases for
Employees.This increase is due to the amount of Non-TIF taxable values increasing by
$27,209,753.
22
24
12
1/20/2026
City of Waterloo Valuation Trends
7
TIF
100%ASSESSED
6
At-TAXABLE W/O TIF
--TAXABLE W/TIF
Z 5
0
4
0
0
3
2—
This is a 8.30%increase in total assessed value and a
3.82%increase in total taxable value with TIF
1 — This is a 7.54%increase in total assessed value without
TIF and 1.15%increase in taxable value without TIF.
16 17 18 19 20 21 22 23 24 25 26 27
FISCAL YEAR 23
25
Budget Simulator
• Simulator will start with Question on Funding the Grout Museum which is
currently not included in the$2,100,000 deficit that is shown
• The simulator shows a$2,100,000 deficit—will need suggestions on how to
balance the budget—could include revenue ideas or expense reduction ideas
• Expenses are split between personnel expenses and operational expenses
• Changes made will show the impact by cents on the levy—We are trying to keep
total levy the same rate of$21.79160 or less
• Please submit budget suggestions through the Budget Simulator submissions from
now until February 12,2026.
• Suggestions will be reported to Council on February 16,2026,for consideration
for inclusion in the FY27 budget
https://waterloo.abalancingact.com/fy2027-preliminary-budget
26
26
13
1/20/2026
Wekonre to Ooloo<o,
see.ne acne.une amso aewmaze e.e.xa'ms re.e.ar-e
CITY OF
%45TERLOO
wreeTe.raa,rat<ade
IOWA
Community of Opportunity
You are invited provide feedback on the
FY2027 Preliminary Budget!
The&!yet Pmu:tan is a nay to ye to team mote atone to Cars Stales
toy Verdi*and;mama.;See Ooodng yoir,noel The surrey Nags min a ' EMS
ot Wance0 General Fund budget tared mmon to proposed=a<V year 2 0T
Nape betas of tow Me Coy armed al these rnm rp' ue and eend:Wrs Culture&Recreation
budgets can be found onlne'i'hterbds LWge1 doefterir croft Mr.... SO
Cur Goal for FV27 Is to temp ee Mal Levy Rate at or be:ow Rrc PF26 Levy S675,000.S5"<S.c-00
SO
In oft surrey You can lOUSe unlocked revenue and expense categories Cents on the t 27c
ottoman lo your palms by using to 0 end*,te*de Wens each .2,.=0r
category Rea:ox updates sf stow Re:mad of youreeacadotes at the
lop at to screen Should the C:t',soskide
Fund:rng to tee{musts
enl.try!mown as the Gout
Submit yWr buoget Crapes to pro00e abet Sr Rle CRY'of 16'antOO Softie,* Museum'
symbe is share yea<cosseets'an ut;you are making changes
Ye,Fend ae$621-Ooo
tuotte Thal Surly one focuses on re.erfte speeds and'erodes sawn me toren=SO 27 ally,
General Fund Other zeds mctdeg those to captae inteommet p%eocs are rare)
nod woad m M5 surrey Yes,Seer of reduced
(weft.-
tot sure v.at a resets.Saeyo re or spendry<ate0py' SO.I SOS le.y raM}
To*am more about a rc.me source a Spend nit Category Oft Re to -5312.300
read a descnt on teCrudog 0Yarryles of specific aspects of the re.enue source a gga loft.ems
or spen0mg canon heeding.-Se2S.0 0
WE LOOK FORWARD TO YOUR FEEDBACK!
t.05tca 1,�n ,a,N,. 0 ® 27
27
FY2927 7r,k,on3&Aga 0 0
tam/ clAct
breve SP.469
Sur,..;- V t.=Sat
0,'tkorniiome 0 I New Wets i 0
esed lame.. v ae>.aa See Seven V
RSnft,'teaSWerea+eitir V Mel acne - V
e eiftlifterjettemechin V Pest,i kvi e.xipeey. `w
■SmaaakS+aa v �j/a Gerd Gxms.c",-•
.r tansfggwn ` f Lor=lredggenm
es :
1a.r
28
28
14
1/20/2026
Questions?
Contact:
Bridgett Wood
Finance Director
Bridgett.Wood @Waterloo-IA.org
24
29
15