Presentation on theme: "Budget Highlights Public Information Meeting 2/19/14 $ 89.8 million 1 Fiscal Year 2014/15."— Presentation transcript:
Budget Highlights Public Information Meeting 2/19/14 $ 89.8 million 1 Fiscal Year 2014/15
Maintains the levy rate at $12.55 Funds final agreements with all bargaining units Within Mayor & Council’s guidelines Reduces reliance on Gaming Revenue to supplement operating budgets. Increases funding for one-time capital projects. Increases available fund balance over the next 5 years. Increases available fund balance in Sales Tax over the next 5 years Provides funding for additional full-time positions Funds an aggressive capital improvement program 2
“Stays the course” and “follows the financial plan” we established several years ago and continues our history of we established several years ago and continues our history of: Conservative spending Maintaining healthy cash reserves Strong fiscal planning and adherence to fiscal policies We continue to realize: Stable revenue streams Significant levy growth available under $8.10 and ability to implement benefit levies. 3
First Key Area: First Key Area: We continue to recognize the need for human resources and operating budgets to grow as the city grows For the first time in several years, we are recommending additional full- time positions for an Administrative Assistant in HR/Legal and Equipment Operators in Storm Water and Palmer Hills We will continue to thoroughly review vacant positions in an effort to downsize, through restructuring and realignment of duties where possible. Operating budgets reflect only marginal increases Under utilized and/or outdated programs and services continue to be reviewed for future funding 4
Second Key Area: Second Key Area: We continue to fund an aggressive CIP program to maintain/upgrade our existing infrastructure and support our growing community with quality amenities. FY 14/15 funds $15.4 million of capital projects and maintains the debt levy at $5.00 per $1,000 of taxable value As a growing community we realize that financing an aggressive CIP program equates to having a higher debt levy rate and corresponding debt margin ratio than many comparable cities. The 5-year plan does however, decrease our debt margin ratio by 8% to just under 70% by the end of FY 18/19, while still allocating significant future tax dollars to support projects for our growing community. We recognize the ongoing flexibility available to the City in reducing the debt levy and corresponding CIP projects if needed to balance future operating budgets. 5
Third Key Area: Third Key Area: We remain committed to making the difficult decision of increasing revenues through taxes and user fees “incrementally”, if needed, to balance our budget annually as costs increase. 1.We do not endorse deferring or holding off on raising fees and taxes only to later “spike” the rates to balance the budget This year we are recommending maintaining the levy rate at $12.55. However, the impact will be: 2.87% reduction to existing commercial property Offset by a 2.68% increase on existing residential property (Direct result of the NEW 5% rollback on commercial property) The budget as proposed, also reflects marginal, “planned” increases in user fees for Garbage/Recycling, Storm Water, Sewer, LFC and Palmer Hills. IMPACT: The City’s overall cost of services including property taxes, sewer and storm water fees and solid waste fees remains the 3 rd lowest among our sample of 30 Iowa cities with populations of 10,000 or more. 6
Bettendorf is one of a few Iowa cities with a General Fund levy below $8.10. This allows for future growth capacity of 48%, equating to nearly $5 million of potential property taxes. In addition, the City has the ability to levy taxes for: ◦ IPERS & FICA ($1.54 million) ◦ Emergency levy of $0.27 if needed. ($504,000) 9 1) Maintain the City’s Levy Rate at $12.55
Commercial (Rollback reduced from 100% to 95%) Impact - Avg. 2.87% decrease $500,000 Assessed Value -$337.50 (-$28.13 per month) Residential (Rollback increased from 52.8% to 54.4%) Impact – Avg. 2.68% increase $100,000 Assessed Value+$19.86 ($1.66 per month) $165,260 Assessed Value (Median)+$32.82 ($2.74 per month) $250,000 Assessed Value+$49.65 ($4.14per month) 10 Direct result of the NEW 5% rollback on commercial property
11 Anticipate the trend of shifting tax burden to residential property owners to continue over the next several years.
Taxes Current Year How We Compare to Other Cities? Our sample of 30 Iowa Cities with populations > 10,000 in order by Total Levy Rate 12
2) Provides funding for existing City services and several new programs: 13 FY 2014/15 Budget Highlights Funds marginal increases to operating budgets. Largest increases resulting from Employee Health Insurance, Risk Management, utilities and fuel related costs. Continues close monitoring of over-time, reductions in comp-time and a new vacation buy-back program Funds Road Salt budget and liquid application program at $340,000 (Update on current year, announcement of national award) Funds new “fly over” aerial mapping for GIS system at $45,000 Provides $30,000 for Emerald Ash Borer treatment and/or tree removal on city properties. Extends funding of the Transit Loop service through FY 15/16 ($20,537 in FY 14/15) Funds wage increases for all union and non-union employees
Bargaining UnitFY 14/15FY 15/16Additional Remarks Fire 1.9% COLA Health insurance premiums and out- of-pocket increases for all employees. Maintains grandfathered status. Police 1.9% COLA AFSCME - General 1.9% COLA AFSCME – Library 1.9% COLA Non-Union Employees 1.9% COLA 14 Funds first year of two year contracts with all of our bargaining units
15 PositionDepartment Administrative AssistantHR/Legal Light Equipment OperatorStorm Water Heavy Equipment OperatorStorm Water Light Equipment OperatorPalmer Hills G.C.
5) Health Insurance – 16 Premium and out-of-pocket increases for all employees Received Wellmark renewal at 9.4% increase. (10-12% national average) 9 year average increase in claims: 8.69% (10-12% national average) Maintain Specific Stop Loss at $70K $1 million cash reserves available to fund claims up to maximum aggregate attachment point (125% of expected claims) Agreed with all bargaining units to establish a health committee taskforce to continue to review changes in the health insurance market and potential future impacts to our plan that have mutual benefit
6) Liability Insurance – Total Liability Insurance up $70,467 or 10.37%. Of that, workers compensation fees make up $46,121 Mod rate reduced to.96 due to the Bettendorf losses being lower than statewide average losses. Striving to manage our Work Comp insurance costs although….. Continue to have increased wages A potential 10% State of Iowa published rate increase on various job classifications is expected. Mod rate calculation under state review 17
) Gaming Revenue - $1.5 million 8) Gaming Revenue - $1.5 million We are recommending a 5-year plan that: Reduces allocation of Gaming to supplement operating budgets: Increases allocation of Gaming to one-time capital projects: Projects ending fund balance at June 30, 2019: $1,000,000 20 ) Sales Tax Revenue - $2 million 9) Sales Tax Revenue - $2 million We are recommending a 5-year plan that: Increases projected ending fund balance at June 30, 2019: $2,200,000
Enterprise Fund Projects FY 14/15: $105,000 24 Community Improvement Program continued
25 $520,000Fire: 1 st half of HAZMAT/Rescue vehicle paid in 14/15 ($260,000) $335,500Public Works: Truck Rehab Program (4 to 5 trucks), Van, ¾ ton Pick-up w/ plow, & Endloader $265,534Police: Armored ERU vehicle & Social Worker vehicle $211,000Parks: Utility Cart, 3 Pick-ups, Field Drag, 10’ mower, zero turn mower $176,000Solid Waste: Heavy Duty Rear Load Garbage Packer $37,625Storm Water: ¾ ton Pick-up $30,000Palmer Hills G.C.: Greens Roller & 2 Utility Carts $26,000Community Development: Small SUV for Code Enforcement $197,100New/Replacement Electronic Equipment $138,801New/Replacement Capital Equipment $265,000Replacements at QC Waterfront
26 Continue to adjust user fees, when appropriate, to offset increases in the cost of programs.
27 Continue 3% increases each April 1 to balance revenues and expenditures – BREAKEVEN With the implementation of single stream recycling carts and trucks, 4% increases may be needed beginning 4/1/16.
28 Fee increases are primarily project driven. See CIP for details.
A balanced budget that maintains the current levy rate at $12.55 while reducing the reliance on Gaming Revenue for operational expenditures. Despite holding the levy rate, Bettendorf homeowners will see a slight increase in the City portion of their tax bills in FY 14/15 due to the increase in the rollback on residential property. Most commercial property owners will see a decrease in the City portion of their tax bills due to the 5% rollback on commercial property. Questions & Comments 38