Budget Highlights $ 80.2 million Fiscal Year 2011/12 1

FY 2011/12 Budget Highlights The City of Bettendorf’s financial outlook for the next 18 months remains stable, despite the downturn in our national economy:  Healthy Fund Balances  Significant General Fund levy growth available  Continue history of Conservative Spending  Stable Revenue Streams  Continued strong fiscal planning and adherence to fiscal policies 2

Q uote from Moody’s Investors Service April 2010 – “The assignment of the City’s Aa1 rating reflects the city’s moderately-sized tax base experiencing ongoing growth due to residential and commercial development; sound financial operations supported by solid cash reserves and ample financial flexibility. We believe the city’s financial profile will remain healthy due to solid cash reserves, management’s adherence to a a formal General Fund Balance policy, and significant operating margin within the tax rate limit. ” 3

Fiscal Year 2011/12 Where the City’s money goes: 4

Fiscal Year 2011/12 Where the City money comes from: 5

FY 2011/12 Budget Highlights: Bettendorf is one of a few Iowa cities with general fund levy rate significantly below $8.10. Allows 32.1% levy growth equating to $4.3 million of potential property taxes FY 10/11FY 11/12 General Fund$ $ Health Liability Pension Debt Service5.00 New Levy Rate (same as FY 10/11) $ ) No Increase in the Levy Rate: $

Taxes Current Year How We Compare to Other Cities? In order by General Fund Levy Rate of all Iowa cities with populations over 20,000, plus Clive 7

2. Provides funding for all existing City services:  Frozen operating budgets where possible; with reductions in contract labor and professional services  Continued close monitoring of over time  Funds wage increases for all union and non- union employees FY 2011/12 Budget Highlights 8

Union Settlements Bargaining Unit FY 10/11FY 11/12FY 12/13FY 13/14 Fire0% COLA 2% Deferred 1.50% COLA 7/1/ % Deferred 1/1/ % COLA2.90% COLA (plus 1% if pension is <35.32%) Police2% COLA2.35% COLA.50% Deferred 3% COLA.25% Deferred 2.75 COLA.75% Deferred AFSCME - General 2% COLA3% COLA3.25% COLA3.50% COLA AFSCME - Library 2% COLA3% COLA3.25% COLA3.50% COLA Non-Union Employees 2% COLA3% COLA3.25% COLA3.50 COLA Funds second year of four year contracts with all of our bargaining units 9

FY 2011/12 Budget Highlights: 3) Projects Major Revenues to remain Stable Revenue source:FY 06/07FY 07/08FY 08/09FY 09/10FY 10/11FY 11/12 Property taxes 15,648,364 16,763,147 18,384,425 19,267,371 19,874,584 20,800,360 Charges for Services 11,383,066 11,837,342 13,139,508 14,460,857 17,088,687 17,446,342 Local Option Sales Tax 4,194,137 4,375,125 4,183,906 4,123,192 4,379,062 4,380,000 Road Use Tax 2,615,412 2,678,338 2,590,668 2,724,484 2,830,388 3,039,850 Gaming 1,963,498 2,076,120 1,912,972 1,684,304 1,700,000 1,725,000 Interest Earnings 1,833,719 1,792,190 1,484, ,570 1,039,707 1,086,601 Hotel/Motel Tax 742, , , , ,000 Building Permits 470, , , , , ,800 Utility Tax 691, , , , , ,636 Cable Franchise 366, , , , ,000 Total Major Revenues 41,869,751 45,119,476 47,387,665 49,043,048 52,727,310 54,362,589 Total All Revenues Net of Bond Proceeds, Other Financing Sources and Intergovernmental 44,101,837 46,701,691 49,590,088 51,498,057 54,505,994 55,129, Major Revenues as a % of All Revenues 94.94%96.61%95.56%95.23%96.74%98.61% 10

Building Permit History 11

FY 2011/12 Budget Proposes: 4) All Major Fund Balances to remain stable Fund FY 06/07 ActualFY 07/08 ActualFY 08/09 ActualFY 09/10 Actual FY 10/11 Projected FY 11/12 Projected General 4,977,530 5,100,358 5,240,760 5,267,035 5,112,118 4,957,346 % of expenditures26.29%26.25%26.95%26.09%25.80%24.37% Road Use 822, , , , , ,988 % of expenditures31.72%25.06%6.80%10.87%11.54%11.29% Gaming 1,103,038 2,285,361 2,252, ,544194, ,510 Sales Tax 2,359,455 2,960,922 2,428, ,608 53,219 73,619 Vehicle 1,034,810 1,420, , , ,069 1,242,069 Electronic Equipment 1,035,093 1,101, , , , ,312 Health Insurance 1,001, , , ,458 Risk Management 611, , , ,788 12

FY 2011/12 Budget Highlights: 5. Funds Road Salt budget at $730,000; recommends going to a more liquid application program with purchase of new Brine Maker and 2 new brine applicators 6. Continued commitment towards Code Enforcement Program: $122,000 7.Funds expanded Sunday Library Hours from noon – 5 pm October through May - $16,000 13

FY 2011/12 Budget Highlights: 8) Health Insurance –  Continue to aggressively manage our Health Insurance Fund.  Recommend moving to Wellmark with 8% projected increase in claims vs 11% national  (Current provider, Ullico bid 10%)  Maintain Specific Stop Loss at $50K  Currently have almost $1 million in fund balance to fund up to maximum aggregate attachment point (125% of expected claims) 14

 History of health claims: 7 year average increase 4.25% (National average 11%)  FY 04/05: $2,252,920  FY 05/06: $2,225,112  FY 06/07: $2,256,994  FY 07/08: $2,330,055  FY 08/09: $2,541,497  FY 09/10: $2,826,770  FY 10/11: $2,719,408 Projected  FY 11/12: $2,923,544 Projected (Maximum exposure $3.51 million)  Health Committee continues to meet quarterly to monitor our existing health care plan Health Insurance continued 15

FY 2011/12 Budget Highlights: 9) Liability Insurance – Total Liability Insurance up 5.3%. Of that increase:  Workers Compensation Fee up $67,913: Increased Mod rate from 1.1 to 1.18 due to 4 high dollar claims public safety claims Striving to manage our Work Comp insurance costs although…..  Continue to have increased wages  5% to 20% State of Iowa published rate increases on various job classifications The Safety Committee continues to meet quarterly to discuss safe work practices 16

FY 2011/12 Budget Highlights: 10) User Fees - Storm water Fee - no increase Sewer Fee - no increase Park & Recreation fees – marginal increases to Camp Mac, Sports & Games and Teen Camp programs as well as shelter and room rentals LFC - 4% 7/1/10, 4% on only Adult & Senior Memberships 7/1/11 Palmer Hills – $1 on 9-hole & Senior Rounds and Range Balls Splash Landing - no increase Family Museum door admissions - no increase Transit fares - increase to $1.00 7/1/11, up from $.60 Garbage Fee - 3% 4/1/11 equates to $5.40 for large cart annually Continue to supplement the budget with user fees, when appropriate, to stabilize property tax levy rate. User Fees for several programs are recommended to increase in an effort to cover increased costs: 17

Proposed Solid Waste Fee Increases 18

11) Gaming Revenue - $1.725 million (Currently capped at $1.935 million annually) FY 2011/12 Budget Highlights: 11) Gaming Revenue - $1.725 million (Currently capped at $1.935 million annually) Allocated to supplement operating budgets for:  Enterprise Funds - $1,120,660  Road Use Fund (salt) - $250,000  Economic Development - $203,262  Other Funds - $210,000 If not for Gaming Revenue, user fees would be significantly higher or property taxes would be needed to supplement budgets. 19

Community Improvement Program FY 11/12 $15 million – Across all funds  $11.9 million: Public Works, Community Development, Traffic and Parks & Recreation  $3 million: 1 st Phase of Tanglefoot, Devils Glen to Bus Barn Entrance: 3 lane with 10’ separated recreation trail on north side  $2.3 million: Sealcoat Replacements including Robeson Ave, Alcoa subdivision – all streets, Ten Plus from Central to 28 th, North Oak, Oak Lane  $1.39 million: Various recreation trails including highway 67 from Riverdale to East City Limits ($800,000 Federal Funding) and separated trail on Devils Glen Road east side Middle Road to Devils Glen Park  $1.1 million: Various Street Overlays  $829,000: Various Traffic Projects 20

Community Improvement Program FY 11/12 continued  $11.9 million continued $520,000: Various Alley improvements $500,000: Maplecrest: 29 th west to Hydrant at #3311 $500,000: Street patching throughout the City $450,000: I-80 Water main extension – TIF funding $350,000: Downtown Streetscape Master Plan $326,000: Forrest Grove sealcoat replacement west City Limits to Eagle Ridge – 4 lane 21

Community Improvement Program FY 11/12 continued  $11.9 million continued $250,000: Annual Funding for Parks Projects $200,000: Sealcoat Rural Roads $175,000: Various Sidewalks $150,000: Façade Program and relocation program at I-74 $134,000: Various city-wide projects including renovated restrooms on main level at Library 22

Community Improvement Program continued  $1,180,000 Sewer Utility Projects Hopewell Interceptor – Hopewell to Forest Grove Phase III Infiltration/Inflow analysis and city-wide improvements Chimney Seals, Manhole rehabilitation, sewer televising West pigeon Creek Interceptor at Century Heights 23

Community Improvement Program continued  $1.49 million Storm Water Projects Hopewell Creek Detention at new PV school, 8 acres Ginger Creek Detention at 53rd Stafford Creek – Maplecrest to Middle Small Storm Sewers & Sewer Linings & Intake Repair Various Council priorities to be determined: $250,000 24

 Enterprise Fund Projects: $558,000  $418,000 Palmer Hills Golf Course Improvements: Interior Renovation Projects, holes #15 &#17, regrade holes #15 &#16  $44,000 Splash Landing: Painting slides and pool  $65,500 FMAS: Exhibit design, development and evaluation  $30,000 Life Fitness Center: Lighting replacement Community Improvement Program continued 25

Capital Equipment  Funds $577,500 of new/replacement Vehicles including:  $214,500: 6 replacement police Squad Cars/SUVs  $30,000: Brine Applicators  $108,000: 4x4 mower, 2 ball field drags, utility cart, & skid loader- Parks  $81,000: mower, chemical sprayer & utility cart at Palmer Hills Golf Course  $144,000: Backhoe & 4x4 heavy duty pick-up for the Sewer  Funds $198,640 of new/replacement Electronic Equipment 26

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Taxable vs. Assessed Values 20 Year Percentage Comparison (Existing values only) 34

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 Governor’s Proposed Reduction in Commercial Property taxable valuation - 40 % rollback in 5 years  Governor’s proposed limitation on residential growth to 2% from 4%  Increase in Gaming Taxes for casinos from 22% to 36%  Local Impact  Mandated increase in Police/Fire Pension contributions Other Issues:  Results of Census and impact  ADA Implications - Sidewalks  Sewer utility – impact of waste water treatment plant improvements and proposed equalization basin - $49 million Potential Legislative Issues 38

Budget Issues for Discussion  1) Review Major Revenue Sources  2) Review Fund Equity Balances across all funds  3) Discuss Governor’s Proposal on Commercial Property Tax Rollback  40% rollback in 5 years  Effective 7/1/12  4) Review Latest Census #’s if available and impact  5) Review & establish Road Use Salt Budget and possible migration towards a more liquid application program – Purchase Brine Maker & 2 Applicators  6) Review Funding Support for all Enterprise Funds  Gaming  Increased Garbage Fee – 3%  Increased Transit Fares – from $0.60 to $1.00  7) Review proposed Renewal for Health Insurance  8) Review Liability Insurance 39

Budget Issues for Discussion  9) Review Vehicle Purchases  Transition to Tahoe’s for Police  10) Review all other Capital Equipment and Electronic Equipment Purchases  11) Address Solution to $150,000 General Fund Shortfall  Voluntary Separation Program – Impact  12) Discuss proposed Business Registration Program - $15,000 new revenue  13) Questions & comments on 5-year CIP Program & authorization to proceed with issuance of:  $15 million bonds for CIP  $2 million bonds for Sewer  14) Administrative recommendation to defer Fire Chief’s staffing plan  15) Establish the Levy Rate: Administrative recommendation to hold the levy rate at the current $12.60 per $1,000 taxable value 40

Questions and Answers 41

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