BUDGET HIGHLIGHTS 38
BudgetHighlights TheCityofCedarRapidsbudgetsonalineitemorobjectofexpenditurelevelwithineachdepartmenttoestablish accountabilityfordepartmentoperations.budgetaryresultshowever,aremeasuredonatotaldepartmental basis.thecityofcedarrapidsrevenuesarebudgetedconservativelyanddepartmentsareexpectedtomeetor exceedbudgetedamounts. Expenditures TheoverallFY2017expenditurebudgetis$525M(netoftransfers)whichisanincreaseof$12MfromtheFY 2016budgetof$513M.Themajorityoftheincreaseisrelatedtopersonalservicesanddebtservice.The increaseindiscretionaryismainlyaresultofanadjustmentbetweenaccountsfromcapitaloutlaytothis categoryfor2008floodrecoveryprojectsbasedonprojectedexpenses.thechartbelowdetailthechangefrom FY2016toFY2017bymajorexpenditureobject. Amount FY 2016 Change % Change Adopted FY 2017 From FY 2016 From Major Expenditure Object Budget Budget Incr / (Decr) FY 2016 Personal Services 132,614,456 138,148,006 5,533,551 4% Discretionary Expenses 105,846,923 124,521,019 18,674,096 18% Fleet & Facilities 14,894,187 15,685,176 790,990 5% Non-Discretionary Expenses 37,827,881 35,181,136 (2,646,745) -7% Capital Outlay 172,196,550 159,656,366 (12,540,184) -7% Debt Service 49,800,309 52,219,040 2,418,731 5% Transfers Out 132,068,471 125,844,111 (6,224,361) -5% Total Expenditures 645,248,776 651,254,854 6,006,078 1% Total Expenditures (Net of Transfers Out) 513,180,305 525,410,744 12,230,439 2% ThechartbelowdetailtheexpenditurebudgetchangefromFY2016toFY2017byfundtype. Fund ExcludingTransfers FY2016 Adopted Expenditure Budget FY2017 Expenditure Budget Amount Change FromFY2016 Incr/(Decr) %Change From FY2016 InternalService $50,304,549 $51,442,869 $1,138,320 2% General 115,727,444 119,536,689 3,809,245 3% Enterprise 196,088,984 205,460,261 9,371,277 5% CapitalProjects(NonFlood) 56,786,694 58,888,245 2,101,551 4% CapitalProjects(Flood) 55,020,711 53,162,863 (1,857,848) SpecialRevenue 18,189,133 14,638,248 (3,550,885) 3% 20% DebtService 20,696,088 21,829,014 1,132,926 5% Trust&Agency 366,703 452,555 85,853 23% Total $513,180,305 $525,410,744 $12,230,439 2% *Notethecategory"CapitalProjects(Flood)"includesthe2008floodrecoveryandthefloodcontrolcapitalprojectfunds. 39
BudgetHighlights TheinformationbelowdetailstheFY2017expenditurebudgetbyfundtypeandmajorobjectofexpenditure (netoftransfers).ofthe$525mbudgetedinfy2017,30%or$160misbudgetedforcapitaloutlay expenditures. Fund Personal Services Discretionary Expenses Fleet&Facilities Non Discretionary Expenses CapitalOutlay DebtService Total Expenditure InternalService $10,138,535 $29,293,377 $374,652 $6,348,313 $5,287,991 General 86,113,344 14,717,548 9,011,422 8,746,039 948,337 $ $51,442,869 119,536,689 Enterprise 39,919,380 49,051,964 6,044,598 19,907,398 60,151,032 30,385,889 205,460,261 CapitalProjects(NonFlood) 650,000 101,238 58,137,007 58,888,245 CapitalProjects(Flood) 375,983 17,654,881 35,131,999 53,162,863 SpecialRevenue 1,600,764 12,702,249 153,267 177,831 4,138 14,638,248 DebtService 21,829,014 21,829,014 Trust&Agency 451,000 1,555 452,555 Total $138,148,006 $124,521,019 $15,685,176 $35,181,136 $159,656,366 $52,219,040 $525,410,744 PercentofTotal 26% 24% 3% 7% 30% 10% 100% *Notethecategory"CapitalProjectFund(Flood)"includesthe2008floodrecoverycapitalprojectfundandthegrowthreinvestmentinitiativecapitalprojectfund ExpenditureBudgetByMajorObject DebtService $52,219,040 10% PersonalServices $138,148,006 26% CapitalOutlay $159,656,366 30% Non Discretionary Expenses $35,181,136 7% Fleet&Facilities $15,685,176 3% Discretionary Expenses $124,521,019 24% 40
BudgetHighlights PersonalServices Personalserviceexpensesarethesalaries,wages,andbenefitsforfulltimeequivalents(FTEs). Thepersonalservicesbudgetisincreasingduetoincreasesinwagesandbenefits.TheMunicipalFireandPolice RetirementSystemofIowa(MFPRSI)BoardofTrusteeshasdeterminedtheCity scontributionrate,effective July1,2016,willbe25.92%whichisadecreaseof1.85%fromtheFY2016rateof27.77%.InFY2017,$6.6Mis budgetedformfprsiexpenses.ofthis$6.6m,$4.3misfundedfromthepoliceandfireretirementpropertytax levy.thehistoryofthecity scontributiontomfprsiisshownbelow. IowaPublicEmployees RetirementSystem(IPERS)hasdeterminedthecity scontributionrateeffectivejuly1, 2016willremainunchangedfromthecurrentrateof8.93%. Healthfundexpensesareincreasing$1.4Mduetoprojectedincreasesinhealthcarecosts.Healthinsurance premiumswillincrease22%forthetraditionalplan.premiumsforchoiceplanswillremainthesame.workers compensationcostsareincreasing$1mmainlyduetoclaimcostsandactuaryadjustments. Asoftheprintingofthisdocument,bargainingunitswereinnegiotiations.Asaresultdetailofpersonalservices hasbeenexcludedfromthedocument. DiscretionaryExpenses Discretionarynonpersonalserviceexpensesareconsideredcontrollablebycitydepartments(I.e.office supplies,training,etc.).changestothiscategoryareoutlinedbydepartmentforeachfundinsubsequent sectionsofthisbook. FleetandFacilities FleetandfacilityexpensesmainlyrelatetotheinternalcostofservicesprovidedbyFleetServicesandFacility Maintenance. $5,015,628 $3,851,397 $3,681,466 $4,319,577 $5,613,649 $6,017,024 $7,154,324 $7,244,232 $6,857,325 $6,558,069 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2008 25.48% 2009 18.75% 2010 17% 2011 19.9% 2012 24.76% 2013 26.12% 2014 30.12% 2015 30.41% 2016 27.77% 2017 25.92% FiscalYear/City'sContributionRate City'sContributionAmount FY2008thruFY 2015reflectsfiscalyearactualvalues;FY2016andFY2017isbasedonbudget 41
BudgetHighlights TheFacilityMaintenancebudgetwasbuiltbasedonFY2015actualservicelevels,supplies,andmaterialswith adjustmentsforfy2017anticipatedlevels.technicianratesareincreasingduetopersonalserviceincreases. CityHallbuildingrentalwilldecreaseduetoadecreaseinpropertyinsuranceexpensesandmoreefficient equipmentthatwillrequirefewertechnicianhours.cityservicesbuildingrentalwillincreaseduetoanincrease inexpensestomaintainthegrounds/facilityduetothedesignofthebuildingandduetothebuildingrequiring moremaintenance/technicianhourstomaintainthefacility. TheFleetServicesbudgetwasbuiltbasedonFY2015actualservicelevels,supplies,andmaterialswith adjustmentsforfy2017anticipatedlevels.themechanicrateisincreasingduetoloweringtheannualbillable hoursintheirratemodeltoaccountforemployeesonlightdutybasedonhistoricaltrends.$4.7misbudgeted forvehicleandequipmentreplacementneeds.ofthisamount$2.3mwillbespentongeneralfundvehiclesand equipment,$2.4monenterprisefundvehiclesandequipment,and$45koninternalservicefundequipment. Fundingwillcomefromleasechargesandcontributions. NonDiscretionaryExpenses Nondiscretionaryexpensesareconsiderednotfullycontrollablebycitydepartmentsastheyaresubjectto externaloreconomicfactors(i.e.fuel,electricity,etc.). TheFY2017fuelexpenditurebudgetwasestablishedinOctober2015basedontheprojectionoffuelcosting $2.45/gallonforgasolineand$2.70/gallonfordiesel.Theserateswerebasedonactualcostsoverthepastyear andprojections.thecity soverallfleetpurchaseoffuelwillseeabudgetreductionof$968k. CapitalOutlay Capitaloutlayiscapitalassetssuchasland,buildingsandstructures,andimprovementsotherthanbuildings thatincludeinfrastructure,constructioninprogress,andmachineryandequipment.capitalassetsaredefined bythecityasassetswithaninitial,individualcostofmorethan$5,000thathaveanestimatedusefullifein excessoftwoyears. InFY2017,capitaloutlayexpendituresaredecreasing$12.5MfromtheFY2016budgetof$172M.The decreaseismainlyaresultofanadjustmentbetweenaccountsfromcapitaloutlaytodiscretionaryexpensesfor 2008floodrecoveryprojectsbasedonprojectedexpenses. DebtService Debtserviceincludesthepaymentofprincipal,interest,andrelatedcostsfordebt.Debtserviceexpensesare detailedindebtservicefunds. TransfersOut InorderfortheCitytocomplywithIowalaw,localordinances,orforexpedience,itissometimesnecessaryto transferrevenuesandexpendituresfromonefund/departmenttoanother.transferringcashoutofafundis consideredatransferout. InFY2017,overalltransfersoutdecreased$6Mmainlydueto2008floodprojectscomingtoacompletionasin prioryearstransferswerebudgetedformovingfloodlocaloptionsalestaxrevenuetousesrelatingtomatching fundsforfederalflooddollarstoassistwithfloodrecoveryorfloodprotection. SpecialComment Inordertoavoidrepeatcommentary,throughoutthisdocumentseveralexpenditurechangesaretheresultof thefollowingandarenotspecificallynotedinthedepartmentorfundsummaryofbudgetchangesasalmostall departmentsareaffectedbyoneormoreofthesechanges: 42
BudgetHighlights Adjustmentstopersonalservicesforwageandstepincreases,employeehealthinsuranceplanchanges, workerscompensation,socialsecuritycontributions,iowapublicemployees RetirementSystem(IPERS) contributions,municipalfireandpoliceretirementsystemofiowa(mfprsi)contributions,other retirementplancontributions,andspecialpays. Nondiscretionaryexpensechangesofproperty,liability,andvehicleinsurance,fleetmaintenanceandfleet leasecharges,facilitymaintenanceandrental,electricity,naturalgas,otherinternalcharges,andfuel. Variousadjustmentsbetweenaccountstoreflectwhereactualcostsareanticipated. Revenues TheoverallFY2017revenuebudgetis$525Mwhichisanincreaseof$12MfromtheFY2016budgetof$513M. Thekeyincreasesrelatetochargesforservices,taxes,andfranchisefees.Thechartbelowdetailsthechange fromfy2016tofy2017bymajorrevenuesource. Amount FY 2016 Change % Change Adopted FY 2017 From FY 2016 From Major Revenue Source Budget Budget Incr / (Decr) FY 2016 Taxes 138,237,273 142,527,550 4,290,277 3% Licenses & Permits 2,438,814 2,478,009 39,195 2% Intergovermental Grants 83,934,773 81,500,679 (2,434,094) -3% Charges for Services 163,442,762 170,371,920 6,929,158 4% Fines & Forfeits 5,537,298 5,533,223 (4,075) 0% Proceeds of Long Term Liabilities 44,034,000 40,563,311 (3,470,689) -8% Other Revenue 49,590,360 53,143,226 3,552,866 7% Transfers In 132,068,471 125,844,111 (6,224,361) -5% Total Revenues 619,283,752 621,962,028 2,678,277 0% Change in Fund Balance (106,103,447) (96,551,285) (9,552,162) 9% ThechartbelowdetailstheFY2017revenuebudgetbyfundtypeandmajorobjectofrevenuesource.Asthe chartindicatesbelow,32%or$170mofrevenueisfromchargesforservices.taxesarethenextlargestrevenue sourceat27%or$143m.thethirdlargestcategoryisintergovernmentalgrantsat16%or$82m. Total Revenues With Change in Fund Balance 513,180,305 525,410,744 12,230,439 2% Fund Taxes Licenses& Permits Intergovernmental Grants Chargesfor Services Fines&Forfeits Proceedsof LongTerm Liabilities OtherRevenue FundBalances/ TransfersIn Total InternalService $ $ $ $23,314,053 $ $ $ 28,680,753 $(551,937) $51,442,869 General 60,189,222 2,448,309 2,274,627 14,433,811 5,533,223 Enterprise 4,857,329 4,700 8,822,210 132,615,169 2,368,332 $32,289,165 $119,536,689 26,565,375 19,611,150 $12,984,328 $205,460,261 CapitalProjects(NonFlood) 10,997,300 12,997,936 1,300,000 $33,593,009 $58,888,245 CapitalProjects(Flood) 34,943,439 1,000,000 $17,219,424 $53,162,863 SpecialRevenue 40,960,754 25,000 22,986,097 8,887 895,601 $(50,238,090) $14,638,248 DebtService 16,943,624 668,839 279,260 $3,937,291 $21,829,014 Trust&Agency 19,576,621 808,168 8,130 $(19,940,364) $452,555 Total $142,527,550 $2,478,009 $81,500,679 $170,371,920 $5,533,223 $40,563,311 $53,143,226 $29,292,826 $525,410,744 PercentofTotal 27% 0% 16% 32% 1% 8% 10% 6% 100% 43
BudgetHighlights ThechartbelowdepictstheFY2017revenuebudgetbymajorobjectofrevenuesource. ChargesforServices(LargestBudgetedRevenueSource 32%) Chargesforservicesincludechargestointernalandexternalusersfortheservicesprovided.Thechargesare basedonthecostforprovidingtheservice. InFY2017,32%or$170MoftherevenuebudgetfortheCityrelatestochargesforservices.Thelargestcharges forservicerevenuesourcesinclude: $52M Wastewaterservicechargeandvolumetricrevenue,specialwastewaterrevenue,andcontractual wastewaterrevenue $34M Internalchargesforservicesbetweendepartmentssuchasriskcharges,fundingforJoint Communications,fleetleaseandmaintenancecharges,facilitiescharges,FinanceandInformation TechnologyDepartmentcharges,andinternalstafftimechargestocapitalimprovementprojects $32M Waterservicechargeandvolumetricrevenue $11M Solidwasteandrecyclingfees ComparedtoFY2016,chargesforservicesrevenueisincreasing$6.9Mto$170M.Themainreasonforthis increaserelatestoutilityuserchargesforservicesprovided. UtilityDepartmentsdeterminedtheiroperatingchargesforservicerevenuebasedonoperating,debt,and capitalneedsanddirectionforallowablerateincreases. WaterDepartmentrevenueincreasedduetoservicechargeandvolumetricrateincreases.Therate increaseisassociatedwithprojectexpendituresrelatingtothepavingforprogressprogram. WaterPollutionControlDepartmentrevenueincreasedduetoservicecharge,volumetric,industrial,and contributingcityrateincreasestorecoupthecostofservicesprovided. Taxes $142,527,550 27% Licenses& Permits $2,478,009 <1% Intergovernment algrants $81,500,679 16% Chargesfor Services $170,371,920 32% Fines&Forfeits $5,533,223 1% Proceedsof LongTerm Liabilities $40,563,311 8% OtherRevenue $53,143,226 10% FundBalances/ TransfersIn $29,292,826 6% RevenueBudgetByMajorSource 44
BudgetHighlights SanitarySewerDepartmentrevenueincreasedduetorateincreasesforwastewaterserviceandvolumetric chargestofundsanitarysewerprojects.stormsewerrevenueincreasedduetorateincreasesandwillbe usedtofundstormsewerprojects. SolidWaste&Recyclingrevenueincreasedduetoaresidentialrateincreasetorecoupthecostofservices provided. Inregardtoutilities,residentialutilitybillingswillincrease5.1%whichisanincreaseof$50.76annuallyforthe typicalresidentialcustomerdefinedasahouseholdthatuses10unitsofwaterand10unitsofsewer.1unitis equivalentto100cubicfeetor748gallons. Generalfundandinternalservicedepartmentsusedratemodelstodeterminetheirratestorecoupthecostof theservicesprovided.theincreasesforriskchargesweredeterminedbythefinancedepartmentafter reviewingcosts,recentclaimtrends,and/orprojectedmedicalclaimcostsduetoachangeinthecity sthird partyadministrator. Taxes(SecondLargestBudgetedRevenueSource 27%) Taxesincludepropertytaxonresidential,industrial,andcommercialproperty;alongwithlocaloptionsalestax, hotelmoteltax,andfranchisefees. InFY2017,$143Misbudgetedfortaxes.Thebudgetincludesthefollowingrevenuesources: Propertytaxrevenue $93M SSMIDpropertytaxrevenue(DowntownDistrict) $241K SSMIDpropertytaxrevenue(MedicalDistrict) $215K SSMIDpropertytaxrevenue(CzechVillage/NewBo) $12K Taxincrementpropertytaxrevenue $10.1M 1%streetslocaloptionsalestaxrevenue $18M Growthreinvestmentinitiativerevenue $9M Hotelmoteltaxrevenue $3.3M Franchisefee(cable,electric,gas)revenue $9.3M ComparedtoFY2016,revenueinthecategoryoftaxesincreased$4.3Mfrom$138M.Overallpropertytax revenueincreased$523kduetoincreasedresidentialandindustrialtaxablevaluations.tifpropertytax revenuedecreased$241kaslessrevenuewillbeneededtofundobligationsinfy2017.growthreinvestment initiativerevenueincreased$1.3mandhotelmoteltaxrevenueincreased$359k.franchisefeerevenueis increasing$2.3mto$9.3m.thebudgetincludesanincreaseof1%to3%inthegasfranchisefeeandan increaseof1%to3%intheutilityfranchisefee.thecablefranchisefeewillremainunchangedat5%. Thepropertytaxrevenuebudgetisbasedonpropertyvaluations,therollback,andthepropertytaxlevies.The franchisefeebudgetwasbuiltbasedonhistoricallevelsandprojections.thebudgetsforlocaloptionssalestax andhotelmoteltaxwerebuiltbasedonrecenthistoricalinformationandastronglocaleconomy.growth reinvestmentinitiativerevenuebudgetisbasedontheagreementwiththestate. FY2017isyear3forbudgetinglocaloptionsalestaxfundsforthepavingforprogressprogram.Itisestimated thecitywillgenerate$200mofrevenueoveratenyearperiod.thecitybeganreceivingthisrevenueinfy 2015.DuringFY2015,$14.7Mwasusedtofundeligibleexpensesthatrepaired9.6miles. FY2017isalsoyear3forbudgetinggrowthreinvestmentinitiativerevenueforthefloodcontrolsystem.Thisis atwentyyearprogramthatisestimatedtogenerate$263mtowardsthecity's$570.4mfloodprotectionplan. DuringFY2015,$6.8Mofgrowthreinvestmentrevenuefundedeligibleexpenses. 45
BudgetHighlights Belowisahistoryoffranchise,hotelmotel,andlocaloptionsalestaxrevenue. Belowisahistoryofpropertytaxrevenueincludingrevenuefromselfsupportedmunicipalimprovement districts. $3,747,200 $3,353,064 $3,940,424 $6,962,603 $6,666,465 $6,963,000 $9,266,000 $2,724,770 $2,756,086 $2,895,232 $3,035,261 $3,441,535 $3,000,000 $3,358,916 $19,554,638 $18,138,388 $17,939,752 $18,457,259 $19,331,507 $18,000,000 $18,000,000 $ $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Actual FY2015 Actual FY2016 Budget FY2017 Budget FranchiseTax HotelMotel LocalOptionsSalesTax $80,100,690 $85,221,631 $87,661,706 $89,376,451 $90,204,169 $92,245,670 $92,768,840 $75,000,000 $77,500,000 $80,000,000 $82,500,000 $85,000,000 $87,500,000 $90,000,000 $92,500,000 $95,000,000 $97,500,000 $100,000,000 FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Actual FY2015 Actual FY2016 Budget FY2017 Budget PropertyTaxRevenue 46
BudgetHighlights TheJanuary1,2015,propertyvaluationservesasthebasisforcalculatingpropertytaxesinFY2017.Asof January1,2015,propertytaxvaluationsincreased0.56%to$6.01billion,whichisanincreaseof$34MfromFY 2016(ortheJanuary1,2014propertyvaluation).Residentialvaluationsincreased$33Mandindustrial valuationsincreased$12m.incalendar2013thestatepassedapropertytaxreformbillthatmoveda percentageofpropertyfromthecommercialclassificationtoanewmultiresidentialclassification.thefy2017 valuationformultiresidentialis$191mand$1.68billionforcommercial.themainreasontaxablevaluations increasedisanincreaseinresidentialandindustrialpropertyvaluations.changesinstaterollbackscontributed tolimitingtheincreaseinvaluations.thetaxablevaluationchange(withouttifs)bypropertytypeisdetailed below. FY2016 FY2017 Amount Percent Valuationasof Valuationasof Increase/ Increase/ PropertyType Jan.1,2014 Jan.1,2015 (Decrease) (Decrease) RealProperty Residential $3,389,017,764 $3,422,048,656 $33,030,892 0.97% MultiResidential* $ $190,841,651 $190,841,651 Commercial 1,879,822,511 1,682,626,246 $(197,196,265) 10.49% Industrial 343,628,214 355,914,079 $12,285,865 3.58% TotalRealProperty $5,612,468,489 $5,651,430,632 $38,962,143 0.69% Utilities 377,407,461 371,694,032 $(5,713,429) 1.51% Total $5,989,875,950 $6,023,124,664 $33,248,714 0.56% Less:MilitaryExemptions (11,022,548) (10,611,682) $410,866 3.73% NetValuation $5,978,853,402 $6,012,512,982 $33,659,580 0.56% *MultiresidentialpropertyisanewcategoryinFY2017;inFY2016multiresidentialpropertywasconsidered commercialproperty ThehistoryofthetaxablevaluationwithoutTIFsissummarizedinthefollowingchart. HistoryofTaxableValuationswithoutTIFs Millions 7,150 6,150 5,150 4,150 3,150 2,150 $4,779 $4,920 $5,079 $5,225 $2,298 $5,544 $5,687 $5,753 $5,868 $5,979 $6,013 $3,422 $1,683 $1,840 1,150 $356 $291 150 $191 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fiscal Year TotalTaxableValue ResidentialProperty CommercialProperty IndustrialProperty MultiResidentialProperty 47
BudgetHighlights TheFY2017valuationwithTIFsis$9.96billionwhichisanincreaseof1.59%or$156.2MfromFY2016. FY2016 FY2017 Amount Percent Valuationasof Valuationasof Increase/ Increase/ PropertyType Jan.1,2014 Jan.1,2015 (Decrease) (Decrease) RealProperty Residential $6,241,138,553 $6,299,586,512 $58,447,959 0.94% MultiResidential* $ 233,832,392 $233,832,392 Commerical 2,290,216,806 2,063,976,286 $(226,240,520) 9.88% Industrial 410,959,828 426,072,300 $15,112,472 3.68% TotalRealProperty $8,942,315,187 $9,023,467,490 $81,152,303 0.91% Utilities 872,221,010 946,896,335 $74,675,325 8.56% AssessedTotal $ 9,814,536,197 $9,970,363,825 $155,827,628 1.59% Less:MilitaryExemptions (11,022,548) (10,611,682) $410,866 3.73% *MultiresidentialpropertyisanewcategoryinFY2017;inFY2016multiresidentialpropertywasconsidered commercialproperty Thehistoryofthetaxablevalueandestimatedactualvalueofassessedpropertyisshownbelow. NetAssessedValuation $ 9,803,513,649 $9,959,752,143 $156,238,494 1.59% AssessedValueandEstimatedActualValueofTaxableProperty Estimated Total Total Actual Fiscal Residential Commercial MultiResidential Industrial Military Taxable Percent Direct Assessed Year Property Property Property Property Utilities Exemptions AssessedValue Growth TaxRate Value 2008 2,298,223,104 1,839,730,231 291,308,103 364,350,089 (14,365,036) 4,779,246,491 1.17% 14.62 8,145,012,910 2009 2,401,189,312 1,861,300,332 299,862,706 371,367,099 (14,054,086) 4,919,665,363 2.94% 15.07 8,505,937,610 2010 2,562,190,937 1,849,166,324 308,831,292 372,569,883 (13,760,822) 5,078,997,614 3.24% 15.22 8,688,530,667 2011 2,653,167,342 1,888,668,264 349,974,941 346,577,736 (13,435,611) 5,224,952,672 2.87% 15.22 8,694,897,052 2012 2,906,858,541 1,938,181,514 358,896,829 352,988,808 (12,983,631) 5,543,942,061 6.11% 15.22 9,070,712,901 2013 3,061,718,477 1,932,330,198 343,941,582 361,666,911 (12,511,278) 5,687,145,890 2.58% 15.22 9,263,354,893 2014 3,161,515,932 1,901,539,361 338,746,938 363,469,257 (12,080,596) 5,753,190,892 1.16% 15.22 9,347,805,591 2015 3,257,825,201 1,911,645,041 335,787,697 374,326,371 (11,726,864) 5,867,857,446 1.99% 15.22 9,635,493,397 2016 3,389,017,764 1,879,822,511 343,628,214 377,407,461 (11,022,548) 5,978,853,402 1.89% 15.22 9,803,513,649 2017 3,422,048,656 1,682,626,246 190,841,651 355,914,079 371,694,032 (10,611,682) 6,012,512,982 0.56% 15.22 9,959,752,143 **MultiresidentialpropertyinFY2016wasconsideredcommercialproperty 48
BudgetHighlights From1978 June2014,residentialpropertywassubjecttoanassessmentlimitationorder,or rollback that limitedtheamountofannualgrowthinpropertytaxvaluesto4%.sincefy2015,residentialandagricultural propertyvaluegrowthhasbeencappedat3%orwhicheverislowestbetweenthesetwoclasses. TherollbackappliedtoresidentialpropertyforFY2017setbytheIowaDepartmentofRevenueis55.6259%of estimatedvalue,whichisandecreaseof.1076%overthefy2016amountof55.7335%.the10yearhistoryof theresidentialrollbackpercentageisdetailedbelow. 10YearHistoryofResidentialRollback% 52.82% 54.40% 55.73% 55.63% 50.75% 48.53% 50.00% 45.56% 44.08% 45.59% 46.91% 40.00% 30.00% 20.00% 10.00% 0.00% InFY2014,commercialandindustrialpropertyweretaxedat100%ofpropertyvalue.ForFY2015,commercial, industrial,andrailroadpropertywererolledbackandtaxedat95%ofpropertyvalue.sincefy2016these classeshavebeenrolledbackandtaxedat90%ofpropertyvalue.the10yearhistoryofthecommercialand industrialrollbackpercentagesaredetailedbelow. 49
BudgetHighlights Incalendar2013,theStatepassedapropertytaxreformbillthatmovedapercentageofpropertyfromthe commercialclassificationtoamultiresidentialclassification.startinginfy2017,overan8yearperiodthe multiresidentialclassificationwillshifttotheresidentialclassificationandrollbackvalue.infy2017,multi residentialpropertieswillbetaxedat86.25%ofpropertyvalue.infy2024,thesepropertieswillhavethesame rollbackpercentageasresidentialproperties.thestate shistoricalandplannedrollbackvalueisoutlinedbelow. InFY2017,thetotalpropertytaxlevyratewillremainunchangedat$15.21621/$1000oftaxablevaluation.This representsthe8thconsecutivefiscalyearthecity spropertytaxlevyratewillremainthesame.ahistoryofthe CityofCedarRapids propertytaxlevyisdetailedbelow. HistoryofPropertyTaxLevy $16.00 $15.80 $15.60 $15.40 LevyRate/$1000 $15.20 $15.00 $14.80 $14.60 $14.40 $14.20 $14.62 $15.07 $15.22 $15.22 $15.22 $15.22 $15.22 $15.22 $15.22 $15.22 $14.00 50
TheCityofCedarRapidsleviesareoutlinedbelow. BudgetHighlights Levy FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Change General 8.10 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ - Transit $ 0.80787 $ 0.80787 $ 0.80787 $ 0.80787 $ 0.80787 $ - Liability, property, & self insurance $ 0.14882 $ 0.14882 $ 0.14882 $ 0.14882 $ 0.14882 $ - Band $ 0.01667 $ 0.01667 $ 0.01667 $ 0.01667 $ 0.01667 $ - Memorial building $ 0.20082 $ 0.20082 $ 0.20082 $ 0.20082 $ 0.20082 $ - Public Library $ 0.04000 $ 0.04000 $ - $ - $ - $ - Emergency Levy $ - $ - $ - $ - $ - $ - Police & Fire Retirement $ 0.76000 $ 0.76000 $ 0.80000 $ 0.80000 $ 0.80000 $ - FICA & IPERS $ 0.75997 $ 0.75997 $ 0.75997 $ 0.75997 $ 0.75997 $ - Other employee benefits $ 1.74601 $ 1.74601 $ 1.74601 $ 1.69601 $ 1.69601 $ - Operating Tax Levy $ 12.58016 $ 12.58016 $ 12.58016 $ 12.53016 $ 12.53016 $ - Debt Service $ 2.63605 $ 2.63605 $ 2.63605 $ 2.68605 $ 2.68605 $ - Total Tax Levy $ 15.21621 $ 15.21621 $ 15.21621 $ 15.21621 $ 15.21621 $ - TheFY2017budgetincludes$93Minpropertytaxrevenuethatisgeneratedbytheleviesshownbelow. (ExcludesmedicaldistrictSSMID,downtownSSMID,CzechVillage/NewBoSSMID,andAgLands.) PropertyTaxRevenue DebtLevy $16,943,624 18.4% BusLevy $4,857,329 5.3% BandLevy $100,229 0.1% City Operations $69,172,758 75.0% Memorial Levy $1,207,433 1.3% Foraresidentialpropertyvaluedat$150,000thecalculationoftheannualCitypropertytaxisasfollows. ResidentialPropertyValue $150,000 MultipliedbyRollbackPercentage 55.6259% EqualsTaxableValue $83,439 Dividedby $1,000 MultipliedbyPropertyTaxLevyRate $15.21621 EqualsCityPropertyTaxPerYear $1,270 51
BudgetHighlights Forahomevaluedat$150,000,theapplicationoftherollbackwilltranslatetoadecreaseof0.16%ora$2 annualdecreaseintaxespaidtothecityofcedarrapids.a5yearhistoryofthecityportionofpropertytaxes paidperyearonahomevaluedat$150,000isoutlinedbelow. FiscalYear FiscalYear FiscalYear FiscalYear FiscalYear 2013 2014 2015 2016 2017 AssessedValue $150,000 $150,000 $150,000 $150,000 $150,000 RollbackPercentage 50.7518% 52.8166% 54.4002% 55.7335% 55.6259% TaxableValue $76,128 $79,225 $81,600 $83,600 $83,439 CityLevyRate(per$1000) $15.21621 $15.21621 $15.21621 $15.21621 $15.21621 TotalCityPropertyTaxPerYear $1,158 $1,206 $1,242 $1,272 $1,270 AnnualAmountChangePerYear $48 $36 $30 ($2) PercentChangeBetweenYears 4.15% 2.99% 2.42% 0.16% A5yearhistoryoftheCityportionofpropertytaxespaidperyearonacommercialorindustrialpropertyvalued at$1misoutlinedbelow.withtheapplicationoftherollbackat90%,whichisunchangedfromfy2016,this willresultinnooverallimpactintaxespaidtothecityofcedarrapidswhencomparingfy2017tofy2016. FiscalYear FiscalYear FiscalYear FiscalYear FiscalYear 2013 2014 2015 2016 2017 AssessedValue $ 1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 RollbackPercentage 100.000% 100.000% 95.000% 90.000% 90.000% TaxableValue $1,000,000 $1,000,000 $950,000 $900,000 $900,000 CityLevyRate(per$1000) $15.21621 $15.21621 $15.21621 $15.21621 $15.21621 TotalCityPropertyTaxPerYear $15,216 $15,216 $14,455 $13,695 $13,695 AnnualAmountChangePerYear $0 ($761) ($760) $0 PercentChangeBetweenYears 0.00% 5.00% 5.26% 0.00% Thechartbelowshowspropertytaxespaidperyearforapropertyvaluedat$1Mthatchangedfromthe commercialclassificationtoamultiresidentialclassificationinfy2017.withtheapplicationoftherollbackat 86.25%,thistranslatestoadecreaseof4.17%ora$571annualdecreaseintaxespaidtotheCityofCedar RapidswhencomparingFY2017toFY2016. FiscalYear FiscalYear FiscalYear FiscalYear FiscalYear 2013 2014 2015 2016 2017 AssessedValue $ 1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 RollbackPercentage 100.000% 100.000% 95.000% 90.000% 86.250% TaxableValue $1,000,000 $1,000,000 $950,000 $900,000 $862,500 CityLevyRate(per$1000) $15.21621 $15.21621 $15.21621 $15.21621 $15.21621 TotalCityPropertyTaxPerYear $15,216 $15,216 $14,455 $13,695 $13,124 AnnualAmountChangePerYear $0 ($761) ($760) ($571) PercentChangeBetweenYears 0.00% 5.00% 5.26% 4.17% 52
BudgetHighlights ForCityoperations,thelevyrateis$11.50per$1000oftaxablevaluationwhichwillgenerate$69Mofproperty taxrevenuethatisallocatedtothefollowingareas. FY 2017 Tax % of Overall % of Operating City Operations: Levy Rate Levy Levy Public Safety $ 6.80 44.7% 59.1% General Government $ 1.65 10.8% 14.3% Public Works $ 0.77 5.0% 6.7% Parks & Recreation $ 1.01 6.6% 8.7% Library $ 0.72 4.7% 6.3% Street Lighting $ 0.28 1.9% 2.5% Community Development $ 0.25 1.7% 2.2% Downtown $ 0.02 0.1% 0.1% Total City Operations: $ 11.50 75.6% 100% General Government $9,925,726 14% FY2017PropertyTaxRevenueforCityOperations Community Development $1,532,134 2% PublicWorks $4,615,485 7% Library $4,334,500 6% Downtown $103,147 <1% Parks&Recreation $6,046,861 9% StreetLighting $1,705,795 3% PublicSafety $40,909,110 59% PropertytaxrevenueforCityoperationsisreceivedtothegeneralfundandtrustandagencyfundsas appropriate. 53
BudgetHighlights CedarRapidscontinuestomaintainoneofthelowestpropertytaxratescomparedtootherIowacities.TheCity hasmaintainedtherateof$15.22/$1000oftaxablevaluationsincefy2010.belowarepropertytaxratesfor otheriowacitiesforfy2016incomparisontothecityofcedarrapidsfy2017rate. IntergovernmentalGrants(ThirdLargestBudgetedRevenueSource 16%) Intergovernmentalgrantrevenueisacombinationoffederal,state,orlocalfundingthatincludesroadusetax proceeds,statepropertytaxbackfill,femafundingforfloodrepairprojects,and28eagreementswithother municipalitiesforimprovementprojects. InFY2017,ofthe$525Mbudgetedforrevenuecitywide,16%or$82Misbudgetedforintergovernmental grants.ofthisamount,$46misbudgetedinthe2008floodrecoveryandfloodcontrolcapitalprojectfundsfor projectsthatincludesanitarysewerrepairs,singlefamily/multifamilyconstruction,andfloodcontrol.also, includedinintergovernmentalgrantsisroadusetaxrevenueof$14.2m.ofthe$14.2m,$2.5mwillbe transferredtothestreetcapitalprojectfundandtheremainderwillbetransferredtofundqualifyinggeneral fundoperatingexpensesunderpublicworksandparks&recreation.roadusetaxproceedsarederivedfrom thestatefueltaxrate,vehicleregistration,andotherrelatedfees.thecityreceivestheirallocatedsharefrom thestatetoassistwithconstruction,repair,andmaintenanceofiowa sroadinfrastructure. InFY2015Legislaturecreatedanappropriationtoreimburse,or backfill localgovernmentforpropertytax reductionsresultingfromcommercialandindustrialpropertyrollbacks,butnotforrailroadsormultiresidential property.thisappropriationwillbeunlimiteduntilfy2018wheretheappropriationwillbecappedatthefy 2017amount.Belowisthehistoryofthebackfill. FiscalYear BackfillAmount 2015 $2,800,597(actual) 2016 $4,201,141(budget) 2017 $3,867,527(budget) InFY2017backfilldecreasedduetothecreationofthenewmultiresidentialpropertytypeasthiscategoryis notbackfilledbythestate. ForFY2017,departmentsreviewedtheirbudgetedexpensesandprojectedtheassociatedgrantrevenuetobe budgeted.theonlyexceptionrelatestoroadusetaxrevenue.forroadusetaxrevenue,thebudgetwas 54
BudgetHighlights reviewedbyfinanceandwasbasedonhistoricalactualproceedssincethestatepercapitarateshavebeen historicallyhighcomparedtoactualproceeds.thestate seconomyimpactsroadusetaxrevenueswhichwere alsotakenintoconsiderationwhensettingthebudgetaswellasthecity scommitmenttobudgeting conservativelyforrevenues. OtherRevenues(FourthLargestBudgetedRevenueSource 10%) Otherrevenuesincludebuildingrental,insurancepremiums,specialassessments,airportparking,andairport landingfees. Thecategoryotherrevenuesisincreasing$3.6Mto$53Mbasedonprojectedestimatesforrevenuesources suchasbuildingrentalandinsurancepremiums.ofthe$53mbudget,$26mofrevenuestemsfromrisk insurancepremiums.$908kisbudgetedforinterestrevenue,whichisanincreaseof$526kfromfy2016dueto investmentsreceivingahigherinterestrate. ProceedsofLongTermLiabilities(FifthLargestBudgetedRevenueSource 8%) Longtermliabilitiesisacombinationofgeneralobligationbonds,revenuebonds,taxincrementfinancing bonds,andstaterevolvingfundproceeds. TheFY2017budgetincludesthefollowingfundingwithlongtermliabilitiesforcapitalimprovementprojects: $14.6M Generalobligationbonds $5M ADAimprovements $4.7MPublicWorks($1.1M StaffTime,$1.1M StreetImprovements,$1M SidewalkImprovements, $375K TrafficImprovements,$1.1M TrailImprovements) $850KParks,Recreation,Forestry,Riverfront($400KParks,$150KRecreation,$150KRiverfront,$150K StreetTrees) $1.3M Fireheavydutyrescuetruckandstationalertingsystem $500K Librarybooks $1M Floodcontrolsystem $150K ITimprovements $500K Cityfacilityimprovements $601K Parking($450KSkywalkfromConventionCentertoUSBankParkingRampStructure,$151K safety) $26M Revenuebonds $14.5M Waterimprovements $2.4M Sanitarysewerimprovements $9.1M Waterpollutioncontrolimprovements ComparedtoFY2016,proceedsoflongtermliabilitiesdecreased$3.5Mto$41M.Themainchangesinvolve revenuebondfundingincreasing$3.6mto$26mandgeneralobligationbondfundingdecreasing$6.2mto $14.6M.ThedecreaseisthedirectresultofplannedprojectswhilekeepinginmindtheCity scommitmentto budgetingatalevelitcanafford.theprojectsincludedinthebudgetwereprogrammedbasedontheirpriority, cost,revenuesource,purpose,and/ortiming. LicensesandPermits Licenseandpermitrevenueisderivedfromanumberofsourcesincludingbuilding,plumbing,mechanical,and electricalpermitsaswellasliquorlicensesandrightofwaypermits. Licensesandpermitsisincreasing$39Kto$2.5Mbasedonhistoricalinformation. 55
BudgetHighlights FinesandForfeits Finesandforfeitsincludetrafficenforcementcamerafinesaswellascourtandlibraryfines. Finesandforfeitsdecreasedby$4Kto$5.5Mbasedonhistoricalinformation. FundBalance/TransfersIn Forbudgeting,fundbalanceisthedifferencebetweenassetsandliabilitiesfromthepastfiscalyear(s).On occasionfundbalanceisusedtofundexpensesoftheupcomingbudgetyear. Operatingbudgetsaregenerallybalancedwithcurrentrevenueswithafewexceptionsofwhereprioryear revenuecollectioninexcessofexpenditurerequirementsarebeingutilizedasfundingsourcesinfy2017.the specialrevenueandcapitalprojectbudgetsarebalancedwithcurrentrevenuesormayuseexistingcashon handinprojectsfrompastfiscalyearstofundexpendituresduetoplannedexpendituresorthetimingof expenditures. InFY2017,transfersindecreased$6Mmainlydue2008floodprojectscomingtoacompletionasinprioryears transferswerebudgetedformovingfloodlocaloptionsalestaxrevenueforusesrelatingtomatchingfundsfor federalflooddollarstoassistwithfloodrecoveryorfloodprotection. TheuseoffundbalanceortransfersinisdecidedbyDepartmentsand/ortheFinanceDepartmentbasedon needsandavailability.thefinancedepartmentconfirmsiffundscanbetransferredorusedgiventhe circumstanceoftheexpenseandoriginalsourceofthefunds. SpecialComment Inordertoavoidrepeatcommentary,throughoutthisdocumentseveralrevenuechangesaretheresultof variousadjustmentsbetweenaccountstoreflectwhereactualrevenueisanticipatedandthereforearenot specificallynotedindepartmentorfundsummaryofbudgetchanges. 56