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2 28 18 FY19 City Manager's Budget PresentationFiscal Year 2019 Budget Public Hearing Feb. 28, 2018 1 2 Iowa Population Change: 2010-2016 3 County % Change Woodbury (Sioux City)+0.6% Muscatine (Muscatine)+0.5% Pottawattamie (Council Bluffs)+0.5% Jasper (Newton)-0.4% Wapello (Ottumwa)-1.8% Cerro Gordo (Mason City)-2.4% Webster (Fort Dodge)-3.3% Clinton (Clinton)-3.7% Dubuque County: +3.4% (97,003) 4 Estimated Population Migration: 2010-2016 Dubuque County: Inflow of +1,389 5 Proposed State Legislation Elimination of Property Tax Backfill Payments to cities, counties, and school districts •Would cost Dubuque $344,233 in revenues in FY2019, $688,465 in FY2020, and $1,032,698 in FY2021 and beyond 6 Proposed State Legislation Reduced funding for State of Iowa Historic Tax Credit Program •Financing for private developers to renovate and repurpose old buildings and repurpose them, like the projects in the Historic Millwork District that are creating commercial and retail space and apartments for workforce housing 7 Iowa Business Council Report 2000 Ranking 2017 Ranking Median Household Income 21 26 Gross State Product 29 30 8th Grade Reading Proficiency 11 17 8th Grade Math Proficiency 12 14 Education Attainment High School 9 11 Education Attainment Bachelor Degree 22 34 Gallup-Healthways Well-Being Index 7 19 8 Iowa Business Council Report 2000 Ranking 2017 Ranking State Public-Pension Funded Ratio 29 13 State Business Tax Climate 46 40 9 FY2019 Property Tax Recommendation 10 % Change $ Change Property Tax Rate -2.71%-$0.29 Average Residential Payment +2.00%+$15.11 Average Commercial Payment -3.84%-$126.04 Average Industrial Property -3.46%-$170.38 Average Multi-Residential Property -7.13%-$143.71 Airport Marketing Budget Impact of adding $25,000: 11 Original Rec.$25,00 Increase Property Tax Rate -2.71%/-$0.29 -2.62%/-$0.28 Average Residential Payment +2.00%/+$15.11 +2.10%/+$15.84 Average Commercial Payment -3.84%/-$126.04 -3.75%/-$123.06 Average Industrial Property -3.46%/-$170.38 -3.37%/-$165.90 Average Multi-Residential Property -7.13%/-$143.71 -7.04%/-$141.94 Library Request for Regional Author Visits Impact of funding the $3,000 request would increased recommended property tax rate by 0.01% ($0.001) and the average residential taxpayer would have an increase of 0.01% (+$0.09) from the recommended rate. 12 Retention of WRRC Maintenance Electrician Position •Combination of the added cost ($83,281) of the Maintenance Electrician position and the reduction of $42,000 in the contract services request would equate to an increase in the sanitary sewer fee from 3% to 3.41%. •Future vacancy of Plant Operator position being eliminated creates savings of $39,000 which reduces increase from 3.41% to 3.08% •$8,000 reduction in related supplies & services budget reduces fee increase to 3.03% 13 BioGas Project Impact: •BRD will modify agreement to include $3,000 per month maintenance contract •Will add $30,000 to FY2019 revenue stream and help offset $25,000 of additional staff expense related to BRD operation Sanitary sewer rate increase must be no lower than 3% to fund sanitary sewer reserve. 14 Retention of WRRC Maintenance Electrician Position Budget Recommendation I recommend adoption of the budget as originally submitted on Feb. 5, 2018, and recommend: •not funding the additional $25,000 in Airport marketing funds, instead staying with the existing marketing budget of $90,151; •not funding the $3,000 for the Library’s visiting regional author program; and •supporting the recommendation of the Water & Resource Recovery Center Manager and eliminating the Maintenance Electrician position. 15 Fiscal Year 2019 Budget Public Hearing Feb. 28, 2018 16