Budget powerpoint - ManagerProposed Amendment to
Fiscal Year 2004 Budget
New FY'04 Operating Budget Constraints
Reduction in State Revenues $(1,157,132)
(3.54% of general fund)
Additional Increase in Health Insurance
Costs
$' (613,766)
Other revenue shortfalls
$, (315,000)
Total shortfall $ 2,'~085,898
What's the difference between and
Operating budget and a Capital
Improvement Project budget?
OPERATING BUDGET - represents recurnng activities and
Services from several City departments. Provide services and
~nvolves expenditures which benefit the current year.
CAPITAL IMPROVEMENT PROJECT (CIP) - represents major
"permanent" capital improvement projects requiring the non-
Recurring expenditures of public funds.
Fiscal Year 2004 Budget
Approved March 2003 (included $1
reduction in operating bud jet)
million
Operating Budget $63.2 million
(53.5% of General Fund)
· CIP Budget $37.3 million
Approved cuts in current
Fiscal Year 2004 budget
Hiring freeze ($165,000 savings)
Elimination of Professional Conference Travel
Budget ($75,445)
No funding for a portion of employee
training ($43,010)
No funding Department Manager's annual
strategic planning session ($20,000)
Approved revenue in current
Fiscal Year 2004 budget
Establishment of'Stormwater Utility
Fee increases in Building, Planning and
Zoning, Ambulance, Water, Recreation
program, Sanitary Sewer and Solid Waste
Collection totaling $592,444.
Increase to $743,000 amount of DRA taxes into
operating budget (50-50 split with CIP)
How we compare to other cities on
Tax rate and Utility rates
Property Tax comparison
'CITY TAX RATE
9 Waterloo 18.37162
8 Des Moines 17104857
7 Iowa City 16.81344
6 Council Bluffs 16.42850
5 Sioux City 15.95108
4 Davenport 14.63000
3 Cedar Rapids12.82969
2 Dubuque 10.2730
1 Ames 9.63962
The highest-ranked city (Waterloo) is 79 % higher than Dubuque's rate,
and the average is 42.8% higher.
Refuse rate comparison
RANK CITY MONTHLY PAY AS YOU New
FEE THROW Rate
7 Ames $20.50 No (average fee for
private service)
6 Cedar Rapids$12.56 Yes
5 Iowa City $12.10 Yes ~
4 Waterloo $11.00 Yes
3 Des Moines $10.25 No
2 Sioux City $9.50 No
1 DUbuque $7.49 Yes, $7.60
The highest-ranked city (Ames) is 170 % higher than
Dubuque's rate, and the average is 57% higher.
Water rate comparison
RANK CITY WATER USED (800 cubic New
feet/residential average) Rate
5 Ames $18.42
4 Des Moines $15,86
3 Council Bluffs $14.00
2 Dubuque $12.56 $12.80
4
1 Cedar Rapids $12.48
The highest-ranked city (Ames) is 44 % higher than Dubuque's rate,
and the average is 15% higher.
Sewer rate comparison
RANK CITY SEWER FEE
(Based on 800 cubic ft/month)
9 Iowa City $31.82
8 Des Moines $21.56
7 Waterloo $18.95
6. Sioux City $17.11
5 Ames $16.78
4 Council Bluffs $15.12 '
3 Davenport $13.76 ,
2 Dubuque $13.04 ,
1 Cedar Rapids $10.73 ,
The highest-ranked city (Iowa City) is 144 % higher than Dubuque's rate,
And the average is 35% higher.
Stormwater utility rate comparison
RANK CITY RATE*
*Average Monthly Residential rate
8 ' Des Moines $4.60
7 Burlington $3.00,
6 Garner $2.63~
5 Ceder Rapids $2.25
4 Boone $1.95,
3 Sioux City $1.84 ',
2 Ames $1.50,
I Dubuque $1.29~
The highest-ranked city (Des Moines) is 257 % higher than Dubuque's rate,
and the average is 84% higher.
New FY'04 Operating Budget Constraints
Reduction in State Revenues $(1,157,1 32)
(3.54% of general fund)
Additional Increase in Health Insurance
Costs
$ (613,766)
Other revenue shortfalls
$, (315,000)
Total shortfall
$ 2,;085,898
CIP Budget Constraints
United States Supreme Court Ruling
Await decision on State Supreme Court Ruling
$17 million in CIP affected over next 5 years - $12 million cut from CIP
- $5 million raised through an increase
in Stormwater utility
FY'05 Operating Budget Issues
State-mandated rollback of residential property
Residential equalization order
· Reimbursement to Reserve Fund
Analysis of General Fund Bal, nce
· Cash Balance per 6/30/02 CAFR (page 24)
· Purchase order encumbrances (page 22)
· Continuing appropriations authority covered
is 1st budget amendment
· Available balance
19,876,418
(3,330,054)
(9,464,028)
$ 7,082,336
· 10% Guideline (2,556,000)
· January 2002
· Used in 2002
oDRA distribution Jan. 2002 for FY '03
· Generated to support next years budget
· Available balance
4,358,000
(578,00O)
(3,780,000)
(200,000)
$ 546,336
· Period 13 correction to fund 410
· Uncommitted balance
(127,209)
$ 419,127'*
**Used to support FY '04 - '08 ClP since non-recurring
Frequently Asked Questions (FAQs)
on funding budget shortfall
Why can't the City raise property taxes?
Why can't the City dip into reserve'fund?
Why can't the City use CIP funds?
Why can't the City use money from the
Riverfront project?
· Why can't the City hold a referendum?
Why can't the City raise taxes?
Iowa law requires that a City's budget for the
upcoming fiscal year be certified by March 15 of
the current year. This includes certifying any
proposed property tax increases. To meet ,this
requirement the City had to certify the budget
beginning July 1, 2003 by March 15, 2003
C.h. anges to the legislation reducing revenue to
c~bes happened after March 15 and did not,
include a provision to allow property taxes to be
increased to help address the shortfall.
Why can't the City dip into its reserve fund?
The City has established a policy guideline that
maintains reserves at 10%.
The Reserve fund is used to provide sufficient cash flow
to pay bills, and should only be reduced in an emergency.
The Reserve fund is one measure of a city's financial
stability and affects a bond rating. Cities are expected to
use sound financial practices in managing their budget.
Should the city reduce the Reserve Fund, the ,bond rating
could be lowered and interest rates and project costs may
increase.
The Reserve Fund would still have to be "made whole" in
a future year.
If a catastrophic event occurred the City m~ght have
' ~
~nsufficient resources to respond.
Why can't the City use CIP funds?
Capital Improvement projects are projects that do
not occur every year.
The operating budget is intended to cover recurnng
expenses such as salaries or supplies.
Funding of the capital improvement budget is partially
dependent upon gaming revenues. Gaming revenues
are unpredictable and are best used to fund one-time
projects as those found in the CIP budget.
To use onetime CIP funds to cover annual expenses
is not good fiscal management and merely delays the
problem created from an annual shortfall.
The funding sources used in the CIP have restrictions,
like the DRA distribution and Local Option Sales Tax.
Funding Restrictions
Sales tax use is restricted by referendum.
The use of the annual gaming revenue
distribution is restricted to capital improvements
by a lease approved by the Iowa Racing and
Gaming Commission.
Why can't the City use money fromm the
Riverfront project?
The America's River project is being funded
through federal earmarks an.d grants that must
be used to promote economic development,
tourism and education.
The $40 million Vision Iowa grant, CAT grant and
REAP/Trail grants must be used to create
regional tourism for Iowa.
These grants did require a local match, which
was made in part, by money from the gaming
taxes and DRA distribution.
Why can't the City use money from the
Riverfront project?
Almost all of the America's River project is under
contract.
The private developer provided the $27 million to
build the hotel.
The Dubuque County Historical Society raised the
$57 million to build the aquarium.
Why can't the City hold a referendum?
A municipality can only offer the option of a referendum
when State law allows. Currently the State does, not
provide for referendum on budget issues and so this cannot
be a referendum item.
Recommended Decision Packages
Operating Budget
Wage freeze for non-bargaining city employees.
a
Expense reductions or changes
that do not involve cutting city positions.
Increase in revenues
Elimination of city positions
N
Non-general, fund changes
6. Retirement incentive
Wage freeze for non-bargain'ing
City employees
Savings of $551,1 O0
Unions refused to accept a one year wage
freeze for a savings of $779,300
· Total sawngs would have been $1,230,400
Expense reductions or changes that do not
Involve cutting city positions
General Fund
Department
Police
Library
City Clerk
City Manager
Emerg. Comm
City Manager
City Manager
Engineering
Purch of Serv
Recreation
City Council
City Council
City Council
Legal Services
City Clerk
City Clerk
Annex Maint
City Hall
City Hall
Item
Specialized police services discontinue
Reduce programming by 47% for all
Eliminates staff support on CS tests
Sensitivity Training
Training expense for Ride-Alongs
Eliminate employees gifts
Wellness Programming
Eliminates $8,000 for overtime
Reduction in alloc, by 7.6%
Eliminate Ice Rink Warming Houses
Eliminate Boards and Comm. Picnic
Reduce Travel Professional Conference
Sister City Program
Eliminated Education & Training
Eliminate microfilming/scanning
Drop printing of Council Proceedings
Equipment Maint. Contract
Reduced janitorial services
Reduce property maintenance
FY 04 FY05
(81,736) (81,736)
(4,285) (4,285)
(1,350) (1,350)
(3,000) (3,000)
(1,665) (1,665)
(4,072) (4,072)
(9,700) (9,700)
(8,000) (8,000)
(3,945) (3,945)
(5,871) (5,871)
(2,400) (2,400)
(13,750) (13,750)
(2,ooo) (2,ooo)
(962) (962)
(8,260) (4,500)
(1,190) (1,210)
(475) (475)
(5,668) (11,336)
(2,298) (2,298)
Expense reductions or changes that do not
Involve cutting city positions
General Fund
Department
City Hall
Info Services
Item
Reduce operating supplies
Reduce network maint to 8hrs/5 days
Library
Info Services
Health
Health
Health
Legal Services
Info Services
Parks
Planning
Planning
City Manager
Annex Maint
Annex Maint
Annex Maint
City Manager
Econ. Dev
City Manager
City Manager
Reduce materials purchased 17.4%
Renegotiated service contract
Eliminates OT for Animal Control Officer
Eliminates temp clerical
Elimintes OT for Sanitarians
Splits health insurance between depts
Uses comp time vs paid overtime
Eliminate weekend overtime
Reduce times zoning map updated
Eliminate ECIA contracted services
Drop 25 Laserfiche view only licenses
Boiler Maintenance
Pro perty Maintenance
Property Maintenance
Drop Dale Carnegie Training
Washington DC Initiative reduced
Budget printing--4 copies only
Meals for budget hearing sessions
FY 04
(1,059)
(5,000)
(45,875)
(5,ooo)
(1,494)
(885)
(3,268)
(4,301)
(6,835)
(7,860)
(2,ooo)
(12,000)
(1,980)
(450)
(2,088)
(615)
(3,431)
(13,218)
(5,360)
(2,650)
FY05
(1,059)
(5,ooo)
(45,875)
(5,ooo)
(1,539)
(902)
(3,400)
(4,301)
(6,835)
(7,860)
(2,ooo)
(12,000)
(1,980)
(450)
(2,088)
(615)
(3,431)
(13,218)
(5,360)
(2,650)
Expense reductions or changes that do
not Involve cutting city positions
General Fund
Department
City Manager
City Manager
Emerg. Comm
Emerg. Mgmt
Finance.
Finance
Health
Housing Serv
Human Rights
Info Services
Info Services
Recreation
City Manager
Police
Recreation
Police
Planning
Item
Eliminate catering for meetings
Subscriptions Services-Personnel
CAD maintenance shifted to 911 Fund
Increased federal funds
MonitodCollect Loans Internally-CDBG
Recharge addl OH to parking
State reimbursement of activities
Shift vehicle expense,reduce supplies
Shift $10,000 salaries to HUD funding
Actual savings on SQL more than antic.
Email management moved in house
Increase Admin. Overhead Chg to Golf
College Reimbursement Funds
FY 04FY05
(2,500) (2,500)
(2,000) (2,000)
(15,311) (15,311)
(3,541) (3,541)
(6,000) (6,000)
(4,000) (4,000)
(5,000) (5,4oo)
(2,200) (2,200)
(lO,OOO) (lO,OOO)
(1,702) (1,702)
(13,058) (16,783)
(10,000) (10,000)
(7,400) '(7,400)
Cable funds for public information officer(60,858) ,(60,858)
CDBG funds pay for 50% swim pass (13,528) (13,528)
Reimb for tickets issued by Police (20,000) (20,000)
Eliminate staff membership in APWA (900) (900)
Use of non-recurring reserves in FY04 and replenish in FY 05 (53,041) 53,041
Increases in revenue
General Fund
Department
Building
City Clerk
Emerg. Comm
Engineering
Engineering
Engineering
Engineering
Fire
Fire
Five Flags
Five Flags
Five Flags
Five Flags
Health
Health
Housing Serv
Legal Services
Library
Parks
Parks
Item
Increased contractor license fees
Increase Business License Fees
$20 charge for each tape made
Adds traffic control permit fee $50
Increase permit fee for dumpster
Increases license
Increase Sidewalk Inspection fee
Adds $1.25/ capita charge for hazmat
Confined space charges to industries
Increase Labor Rates
Add $1.00 surcharge on tickets sold
Increases Public Skating Fees
Increase skate rental fee $1.00 to $1.50
Incr. late penalty on dog/cat license
Increases dog/cat license fees
Increase rental housing fees
Payment for Bd of Review tax appeals
Meeting room fees,inter-library loan fee
Increase pavilion rental fees 15%
Increase camping fees
FY 04
(17,650)
(4,950)
(2,000)
(2,500)
(5,850),
(1,8oo)
(21,000)
(33,321)
(4,500)
(4,865)
(34,500~
(2,o5o),
(1,175).
(3,750),
(10,841 )
(3,595)
(lO,OOO)
(4,300)
(7,8oo)
(9,574)
FY 05
(17,650)
(12,900)
(2,000)
(2,500)
(5,850)
(1,800)
(21,000)
(33,321)
(4,500)
(4,865)
(34,500)
(2,050)
(1,175)
(3,750)
(17,400)
(3,595)
(lO,OOO)
(4,300)
(7,8oo)
(9,574)
Increases in revenue
General Fund
Department
Planning
Planning
Planning
Police
Recreation
Police
Recreation
Recreation
Recreation
Item FY 04 FY 05
New billboard inspection fees
Increase spec. exception/setback fee
Zoning fees increased in budget
New research fee for criminal checks
Impact of background check fee
Processing fee for impounded vehicles
Increase Play Lot/Tot Lot fees by $5
Increase After School Sports fee by $3
Increase youth sports fees by $3.00
(7,800) (7,800)
(2,800) (2,800)
(58,620) (58,620)
(31,800) (31,800)
1,0001,000
(20,4'00) (20,400)
(4,ooo) (4,ooo)
(3,750) (3,750)
(2,61b) (2,610)
Eliminate 18 FT Positions
General Fund
Department
Fire
Police
Police
Parks
Library
Library
Finance
Five Flags
Police
Parks
Engineering
Engineering
City Manager
Human Rights
Position
Eliminates 3 Fire Equip Operators
Eliminates Traffic Safety patrol officer
Canine officer ito reg. patrol, -1 officer
Eliminate one park ranger
Loss of accreditation on revenues
Major exhibits/programs discontinued
Replace FT Fiscal Coord w PT
Reduces Bldg Supv to PT
Eliminates computer help desk position
Eliminate one maintenance worker
Eliminate Traffic Engineer
Eliminated Eng II position
Admin. Serv Mgr->Budget Director
Eliminate Legal Intern, DDRC
FY 04 FY 05
(190,944) (190,944)
(60,989) (60,989)'
(64,134) (64,134)
(43,916) (z~3,916)
35,000
(126,865) (126,865)
(42,206) (42,206)
(34,011) (34,011)
(46,343) (,46,343)
(50,699) (50,699)
(56,982) (56,982)
(19,050) (19,050)
(18,135) (33,272)
(13,872) (13,872)
Eliminate 18 FT Positions
General Fund
Department
Police
Library
Legal Services
Finance
Engineering
Airport
Airport
Position
Eliminates civilian computer intern
Cut Americorp program, outreach
Eliminates Intern
Eliminate Finance Intern
Shift funds/assignment of Eng II
Savings used to help cover NW rev.
Eliminate LEO FT and PT positions
FY O4
(11,587)
(13,494)
(7,008)
(11,934)
18,315
(73,6'14)
FY O5
(11,587)
(13,494)
(10,011)
(4,ooo)
(11,934)
18,315
(73,614)
Non-General Fund Changes
Transit Fund
Department
Transit
City-wide
Transit
Transit
Transit
Item
State Transit Assistance reduction
Non-union wage adjustments
Increase Fares reg $1 to $1.50
Equalize garage recharge rate
Eliminate Fixed Route Saturday serv.
FY 04 FY 05
8,000 8,000
(5,311) (5,311)
(102,682) (102,682)
22,049 22,049
(32,393) (32,393)
Road Use Tax Fund
De partment Item
Oper. & Maint. Increased health costs
FY 04 FY 05
30,778 30,778
Water Operating
Dept
Water
Finance
Water
Water
Water
Water
Item
Increased health costs
Lower Step due to retirement
Reduce hydrant repl-preventive maint.
Reduce consultant services rel to CIPs
Reduced water demand Quebecor
Rate adjustment relative to Quebecor
FY 04 FY 05
28,02828,028
(1,071) (1,071)
(19,500) (19,500)
(2,ooo) (2,ooo)
58,567 58,567
(58,567) (58,567)
Non-General Fund Changes
Sewer Operating
Dept Item
Oper. & Maint
Finance
WPC Plant
WPC Plant
WPC Plant
Increased health costs
Lower Step due to retirement
Reduce subscriptions/travel
Rebidding shifts to reduce OT
Renting oxygen generating system
FY 04 FY 05
28,79028,790
(1,071) (1,071)
(2,465) (2,475)
(5,616) (5,616)
(20,322) (34,842)
Refuse Operating
Dept
Oper. & Maint.
Finance
Oper. & Maint.
Oper. & Maint.
Item FY 04
Increased health costs 24,719
Lower Step due to retirement (1,071)
Increase fee from $7.49 to $7.60/month (21,700)
Increase appliance pickup fee $10->$14 (2,000)
FY 05
24,719
(1,071)
(21,700)
(2,000)
Stormwater Operating
Dept Item
Finance Lower Step due to retirement
FY O4
(1,071)
FY 05
(1,071)
Landfill Operating
Dept
Oper & Maint
Oper & Maint
Item
Increased health costs
Use Agency's FY 04 rate increase
FY 04
10,765
(10,765)
FY 05
10,765
(10,765)
Non-General Fund Changes
Parking
Dept
Parking
Parking
Finance
Parking
Parking
Parking
Item
Increased health costs
Shortfall in revenues
Recharge addl OH to parking
Reimburse police for tickets written
Eliminate a Maintenance worker
Reduce Cashier hours .57 FTE
FY 04
11,513
30,000
4,000
20,000
(49,911 )
(13,988)
FY 05
11,513
30,000
4,000
20,000
(49,911 )
(13,988)
UDAG Funds
Dept Item
Comm. Dev.
Purch of Serv
FY 04 FY 05
Increased health costs 717
Reduction in alloc, by 7.6%-Labor Mgmt (717)
717
(717)
Community Development Funds
Dept
Econ. Dev.
Econ. Dev.
Housing/CD
Housing/CD
Housing/CD
Housing/CD
Item
Increased health costs
Education and Training Funds
Rehab activity supplies reduced
Admin supplies and services
General Liability Insurance
Rental Unit Survey eliminated
FY 04
12,799
(2,500)
(1,470)
(1,397)
(1,500)
(6,000)
FY 05
12,799
(2,500)
(1,470)
(1,397)
(1,500)
(6,000)
Non-General Fund Changes
Lead Paint Program
Dept Item FY 04 FY 05
Housing/CD Shift vehicle expense,reduce supplies 1,000 1,000
Section 8 Housing
Dept
Housing/CD
Housing/CD
Housing/CD
Housing/CD
Housing/CD
Housing/CD
Item FY 04 FY 05
Reduce postage, more internet (500) (500)
Staff to donate refreshments-FSS (200) (200)
Mileage reduced, fewer visits (590)(590)
Reduced telephone long distance (700) (700)
Change background checks to later (2,250i(2,250)
Impact of increase background checks 9,000 9,000
Cable TV Fund
Dept
Cable TV
Cable TV
Annex Maint
Cable TV
Cable TV
Cable TV
Cable TV
Cable TV
Item
Increased health ~nsurance costs
FY 2004 Operating Budget Surplus
Property Maintenance
Reduce membership expense
Reduce Machinery/Equip. Rental
Eliminate Promotional activities
Reduce Subscriptions
Reduce Subscriptions
FY 04
7,015
45,600
(312)
(531)
(726)
(687)
(1,410)
(89o)
FY 05
7,015
42,000
(312)
(531)
(726)
(687)
(1,410)
(890)
Non-General Fund Changes
Cable TV Fund
Dept
City Managers
City ManagerS
City Managers
Police
Item
City Focus changed to insert
Eliminate City Expo Event
Graphic Artist position eliminated
Charge PI function of Police & Fire
FY 04FY 05
(23,700) (23,700)
(9,000) (9,0o0)
(60,858) (60,858)
60,858 60,858
Service Fund
Dept
Engineering
Oper. & Maint.
Engineering
Engineering
Oper. & Maint.
Item
Increased health costs-Engineering
Increased health costs-Garage
Eliminate Traffic Engineering position
Shift funds/assignment of Eng II
Equalize garage rates for Transit
FY 04 FY 05
18,74331,103
12,36012,360
(8,727) (8,727)
11,93411,934
(22,050) (22,050)
Retirement incentive
Must be eligible for retirement
Must retire between July 1, 2003 and
January1,2004
$10,000 cash bonus
Equivalent to the cost per employee for
outplacement services
Recommended Budget Reductions
DEPT
Protective Services
Police
Comm. Center
Fire
Disaster Services
Building w/equipme nt
PERCENT
OFBUDGET
30.44%
2.15%
24.96%
0.15%
0.06%
Assigned
Base Level
Reduction
791,385
55,970
649,003
3,961
16,811
Rec.
Budget
Reduction
397,847
18,976
228,765
,541
17,650
Total
57.77%
1,517,131
666,779
Human Development
Human Rights
Health Services
Park Div.
Civic Center
Recreation
Library
0.85%
0.93%
6.56%
2.94%
1.53%
7.45%
22,116
24,125
170,561
76,471
39,660
193,790
23,872
25,238
119,849
76,601
38,759
194,819
Total 20.26% 526,723 479,138
DEPT
Facilities & Env.
Airport
Transit
Operation & Maint.
Engineering
Economic Development
Housing & Comm. Dev.
Administration
City Hall/Annex
Planning
City Council
City Manager's Office
Budget
Personnel
City Clerk
Finance
Legal
Information Serv
Purchase of Serv
Total
Recommended Budget Reductions
Assigned
PERCENT Base Level
OF BUDGET Reduction
Rec.
Budget
Reduction
2.13% 55,299 55,299
2.20% 57,259 105,026
2.21% 57,568 30,778
2.91% 75,741 127,116
0.38% 9,762 13,218
0.08% 2,005 5,795
0.70% 18,117 12,653
1.68% 43,687 84,120
0.52% 13,593 18,150
1.45% 37,669 60,,228
0.43% 11,305
1.00% 26,101
0.68% 17,765
2.76% 71,679 52,,206
1.65% 42,992 22,271
0.96% 24,973 31,595
0.22% 5,758 3,945
12.06% 313,638 285,168
Total 100.00% 2,615,127 1,768,317
Summary of Budget changes
Total cuts needed
$ 2,085,898
Total cuts recommended
$ 2,032,857
· Total reserves needed in FY 04 $ 53,041
Impact of Budget changes
· Staff
· Service
Increased fees
Replacement schedules
· Ability to take on new projects