City of North Liberty FY 15 Budget Goal Setting. November 19, 2013 North Liberty City Council Chambers 6:30 P.M.

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1 City of North Liberty FY 15 Budget Goal Setting November 19, 2013 North Liberty City Council Chambers 6:30 P.M.

2 Budget Timeline Sep 2 Sep 30 Department Heads create budgets Oct 1 Proposals submitted to City Administrator Nov 19 Budget Goal Setting with Council Nov 16 Dec 1 Dept Head meetings with City Administrator Dec 17 Budget work session with City Council & Department Heads Jan 21 Budget work session with City Council Jan 28 Budget work session with City Council (if needed) Feb 12 Publication of proposed budget Feb 25 Public Hearing and adoption of FY 13 budget Mar 15 Final Budget certified with County Auditor

3 Administration s Budget Objectives Maintain current levels of services and operations. Address service, operational and infrastructure needs due to growth. Address infrastructure needs due to aging. Continue to maintain/build adequate cash reserves. Continue to explore alternatives for providing services more efficiently/effectively (on going throughout the year). Review utility service funds and rates to plan for current and future needs. Maintain tax rate.

4 Current Fiscal Conditions City of North Liberty maintains strong financial position. All major funds projected to grow or maintain strong cash position in FY 14 (noted by Moody s) Road Use Tax Revenues exceeding projections General fund remains strong Utility funds will continue to be monitored, appropriate rates adjustments recommended Bond rating is Aa3 (exceptional considering our tax base size) At 50% of debt capacity Aggressive in repayment of bonds (noted by Moody s) Continue to see growth in taxable value; however, new tax laws will have negative implications to taxable values Well defined CIP and Financial Planning Model will help maintain strong financial position

5 Fund Balances June 30, % reserve $2,000,000 $1,600,000 $1,200,000 28% reserve $800,000 49% reserve 12% reserve $400,000 76% reserve $0 General Fund Road Use Tax Fund Water Fund Wastewater Fund Stormwater Fund FY 12 Actual FY 13 Actual FY 14 Budget

6 Fiscal Challenges Growth Continued growth results in increased service needs or demands Growth does not always cover expenses Request for services have not slowed Staffing levels is some departments have not increased despite the additional demands and responsibilities Additional demands on infrastructure Costs of maintaining and adding infrastructure Facility plans identify $30 mil in improvements over next 5 10 years EPA/DNR Regulations Regulations continue to increase for water, wastewater and stormwater treatment More regulations = more costs = higher rates Specialized parts, maintenance and chemical costs continue to rise State Decisions The new tax laws will negatively impact the budget; however, specific revenue projections are unknown

7 Land Valuation History $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 Assessed Taxable $400,000,000 $200,000,000 $

8 Tax Rate History $12.00 $11.50 $11.00 $10.97 $11.34 $10.91 $11.20 $11.03 $11.03 $11.03 $10.50 $10.00 $10.25 $10.15 $10.16 $9.50 $9.00 $8.50 $

9 Rollback Data Residential 60.00% 58.00% 56.00% 54.00% 52.00% 50.00% 48.00% 46.00% 44.00% 42.00% 40.00% Commercial % 99.50% 99.00% 98.50% 98.00% 97.50% 97.00%

10 Breakdown of Property Taxes Paid FY 14 Iowa City School District (in NL) Iowa City School District CCA School District (in NL) Clear Creek Amana School District Community College 3% State 0% Community College 3% State 0% ICCSD 42% North Liberty 34% CCASD 44% North Liberty 32% Johnson County 21% Johnson County 21%

11 2012 Goal Setting Progress Report On Going Priorities 1. Highway 965 Approximate Percent Complete 20% 40% 60% 80% 100% A. Construction of Phase 2 Comments: Phase 2 under design, expected bid date: February 2014 B. Identify outside funding sources to implement Highway 965 Master Plan Comments: On going; recently received $1.97 mil in STP funds for Phase 3; seek federal funds annually via DC trip. C. Continue to plan for future phases Comments: On going; phase 2 currently in design; future phases planned for in CIP. D. Provide on going information/education to public regarding Highway 965 project Comments: On going; continue to provide press releases and website updates as to the status of Hwy Facility Improvements A. Street Maintenance Facility Comments: Completed B. Library Expansion Comments: Completed C. Ranshaw House Comments: Phase 1 and 2 completed, seeking grant funding for Phase Evaluate need for infrastructure upgrades in original part of city Comments: On going; recently completed sanitary sewer study; annually inspect storm sewers; water and wastewater facility studies underway. 4. Cool Cities & Sustainability Initiatives Comments: On going; finishing up Home Town Rewards Program, continue to implement and seek out other green initiatives. 5. Lobby for federal funds for Penn St. bridge (I 380) Comments: On going; Mayor and City Administrator heading to DC in Feb 2014 to discuss this project and others. Staff has met with IDOT to discuss interchange planning.

12 2012 Goal Setting Progress Report 6. Water System Facility Study Comments: Completed 7. Review Water & Wastewater Rates Comments: On going; rates adjusted in FY 13 and 14; staff to review for FY Economic Development Plan Comments: Completed 9. North Dubuque Street Improvements Comments: Completed 10. Sanitary Sewer Improvements, Phase 1 (FOX Engineering Study) Comments: Project underway; Shive Hattery currently designing improvements, expected bid date: February Priority Projects, Programs, Policies and Initiatives 11. Update Parks Plan Approximate Percent Complete 20% 40% 60% 80% 100% A. Ball field Needs Comments: On going; staff has meet with NLYBS, Babe Ruth League, Council and Park Board to discuss. Staff and leagues will continue to evaluate needs as programs grow. B. Plan for Penn Meadows Park Comments: Project underway; staff has meet with NLYBS and the Babe Ruth League; next step to meet with Shive Hattery to update Penn Meadows Park Plan. C. Plan for West Side Park Comments: Completed 12. Jones Boulevard, Phase 2 Comments: Completed 13. Partner with Developers to plan for easterly expansion. Comments: On going; continue to work with property owners on annexation, regular meeting with school district about new high school, in consultation with engineers about providing utility services to the area. 14. Establish Centennial Planning Committee Comments: Completed 15. Complete Branding Exercise Comments: Project on hold as per Council Direction.

13 Upcoming Projects & Borrowing Schedule Project Name Description Estimated Cost Proposed Funding Source Status East Trunk Sewer Design Sewer Improvements Design east trunk sewer to serve basins 1 and 2 as per the FOX Engineering study. Replace deteriorating sanitary sewer main on Cherry Street and upgrade trunk line from WWTP to Vandello Drive. $400,000 Revenue Bond $1,500,000 Revenue Bond Will seek Council approval in November 2013 Under design; expected bid date: Feb 2014 Hwy 965, Phase 2 Reconstruction and widening of Hwy 965 from Penn Street north, to 230th Street, including the reconstruction of the Scales Bend Road/Hwy 965 intersection. $6,259,000 Federal funding and GO/TIF Bond Under design; expected bid date: Feb 2014 N. Front Street Asphalt reconstruction of Mehaffey Bridge Road. Improvements include a 36 ft road with wide shoulders and adding turn lane at Cedar Springs Subdivision. $1,000,000 GO/TIF and GO Bond Under design; expected bid date: Mar 2014 Date Source Amount Project GO/TIF and GO Bond $1,000,000 N. Front Street GO/TIF Bond Hwy 965, Phase 2 $4,475,000 2nd Qrt 2014 Sewer Improvements $1,400,000 Sewer Revenue Bond $400,000 East Trunk Sewer Design Total $5,475,000

14 Tax Rate Comparisons FY 14 Iowa City Coralville West Branch North Liberty University Heights Solon Oxford Tiffin Lone Tree Swisher Hills Shueyville Johnson County Cities $7.10 $8.10 $8.10 $9.28 $11.03 $10.90 $10.87 $10.84 $10.62 $12.04 $13.52 $16.81 $0.00 $4.00 $8.00 $12.00 $16.00 $20.00 Fairfield Keokuk Norwalk Boone Newton Fort Madison Grinnell Waverly Oskaloosa Storm Lake Coralville Waukee Le Mars Carroll Spencer Indianola Johnston North Liberty Pella Clive Altoona Comparable Iowa Cities (Population Range 9,000 to 20,000) $9.14 $10.15 $9.99 $11.03 $11.83 $11.20 $11.15 $13.56 $13.53 $13.50 $13.50 $12.90 $14.42 $14.25 $14.00 $15.15 $14.89 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $15.98 $15.90 $15.69 $15.62

15 FY 14 Misc. Capital Projects Project Description Department Cost Average Score Rank East Trunk Sewer Design sanitary sewer extensions east of the current corporate limits, as delineated by the current Fox Engineering study, to provide service necessary for future annexations. Wastewater $350, North Front Street Asphalt reconstruction of Mehaffey Bridge Road. Improvements include a 36 ft road with wide shoulders, adding turn lanes at Cedar Springs and Jefferson Addition. Streets $877, West Side Park Development Allocate funds to develop 40 acre park on west side of town, adjacent to Jones Blvd. and St. Andrews Rd (see Comprehensive Park Plan). Parks $250, Trail Network Upgrades Replace 4 foot wide sidewalk with 8 foot wide trail along Cherry Street, from pedestrian underpass to north/south trail; install 8 foot wide trail from Fox Valley Drive to Wood Duck Court; connect Fox Run and Cedar Springs subdivision by installing trail between gap in sidewalk. Parks $95, Commercial Drive Extension Design and construct the extension of Commercial Drive to Zeller Street (does not include land acquisition). Street $92, Penn Meadows Trail Grade and asphalt trail with segments from parking lot to shelters (see Comprehensive Park Plan). Parks $150, Penn Meadows Concessions Building Construct new concessions building between north and south 4 plexes at Penn Meadows Park. Parks $350,

16 City Council Proposed Budget Goals Goal Staff Comments Council Consensus Physically and financially not feasible to complete $20+ million in improvements in one Complete Hwy 965 enhancements for the entire construction season. By phasing the length of the roadway in one summer. construction of this project, we have more chances to apply for and receive federal funding. Design and build a new modern police station to accommodate a population of 20,000. Design and build a modern fire station to accommodate a population of 20,000. Provide adequate infrastructure, including roads, to the new high school with collaboration from the affected governing bodies. Current plan is to construct City Hall/PD at Cherry Street location and upgrade existing fire station. Funds budgeted in FY 14 to start the planning process. Current plan is to construct City Hall/PD at Cherry Street location and upgrade existing fire station. Funds budgeted in FY 14 to start the planning process. Currently in the planning stages. Extend Commercial Drive to Zeller St. With the exception of the capital projects, keep the tax rate the same. Eliminate the use of TIF for new projects that are not already planned. Project in CIP for FY 14; further direction from Council is needed. Varying opinions on tax rate; group discussion and consensus needed. Less use of TIF would have impacts on the number of projects being completed and/or the debt service tax levy.

17 City Council Proposed Budget Goals Goal Staff Comments Council Consensus Continue forward with plans for water and wastewater treatment plant expansions to stay on goal completion dates. End fixed route transit service and focus on SEATS and in community transit needs. Establish a budget surplus of 30% at the end of this fiscal year and increase to 32.5 % for FY 15. Proceed with active financial planning for a special census during the FY 15 time period. Evaluate public transportation costs vs. revenues; consider a revenue neutral program; review SEATS program. Examine use of Storm Water fees and Hotel/Motel tax; use for projects; considering increasing storm water fee if necessary. Try to maintain tax rate with the understanding that the debt service levy and trust and agency levy may need to increase. Community Visioning. Police Department move/build along with city campus. Considering adding the reconstruction of Dubuque Street to the CIP. Facility plans are currently being reviewed by DNR. Anticipate implementing the plan once DNR approved plans. Varying opinions on transit; group discussion and consensus needed. General Fund reserve will be close to these percentages; however a levy increase may be needed to get to 30% and 32.5%. Cost estimate already obtained ($160k). Varying opinions on transit; group discussion and consensus needed. Fees are examined every year; staff will provide any additional information requested by Council. Varying opinions on tax rate; group discussion and consensus needed. Project selected as a goal in 2012; however Council decided to put on hold and not allocated funding in FY 14. Current plan is to construct City Hall/PD at Cherry Street location and upgrade existing fire station. Funds budgeted in FY 14 to start the planning process. With the new high school proposed to be constructed in 2017, reconstruction of Dubuque Street should be evaluated.

18 City Council Proposed Budget Goals Goal Staff Comments Council Consensus Update Land Use Plan. Process has begun. Future discussions with developers, school district, county and public will be needed. SEATS/transit review. Varying opinions on transit; group discussion and consensus needed. Currently, department heads are encouraged Staff development needs formal leadership to budget for and attend applicable leadership training. and training events. 965 plans for next year information to public on timing/planning for traffic disruption. Water department move to streets/parks campus. Evaluate and improve aging infrastructure in old part of town. Budget to install a play feature or attraction at Centennial Park. Focus on extending needed infrastructure eastward in time to open a new school by Consider levy increase now, as it is projected to increase over the next few years. Currently working with engineer on traffic staging plan. Intend to rollout a communication plan after first of the year. Included in facilities plan. Move will occur when new water plant is constructed (2017). We continue to do so on an informal basis through the development and implementation of the CIP. A more formal program could be considered. Project in CIP for FY 15. Further direction from Council is needed. Currently in the planning stages. Varying opinions on tax rate; group discussion and consensus needed.

19 City Council Goals The Process Each Councilor to identify goals (3 5) After all goals are identified, discuss each goal and gain consensus Finalize list of goals for FY 15 budget

20 Tips for Establishing Goals Goals should be: Specific but not micro level. Think macro (i.e. project/policy oriented, not line item detailed). Measurable. Attainable. Goals are just wishes if they can t be accomplished. Relevant. The number of goals can be minimized, leading to greater chances of success, if the subjects are topical. Time Bound. Goals take on more urgency if time frames for success are incorporated.