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Budget Highlights

$ 82 million

Fiscal Year 2011/12

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FY 2011/12 Budget HighlightsThe 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

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Quote 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. ”

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

Public Safety14%

Public Works5%

Debt Service13%

Culture & Recreation

6%

Community & Economic

Development3%

General Government5%

Capital Projects19%

Business Type/En-terprises

35%

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

Property taxes31%

TIF revenues3%

Other city taxes12%

Licenses & permits1%

Use of money2%

Intergovernmental8%

Charges for services

26%

Miscellaneous2%

Bond proceeds15%

Other financing sources1%

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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 10/11 FY 11/12

General Fund $5.71631 $5.49661

Health 1.00105 1.11887

Liability .34003 .31872

Pension .54261 .66580

Debt Service 5.00 5.00

New Levy Rate (same as FY 10/11)

$12.60 $12.60

1) No Increase in the Levy Rate: $12.60

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

Census Taxable ValueTaxable Value

per CapitaFY 10/11 Total

Levy

FY 10/11 General Fund

LevyBettendorf (FY 11/12 Levy) 31,275 1,587,927,558$ 50,773$ 12.60$ 5.49$ Ames 50,731 2,126,174,883$ 41,911$ 10.85$ 6.15$ Clive 12,855 1,078,994,775$ 83,936$ 9.54$ 6.69$ Ankeny 27,117 1,928,906,826$ 71,133$ 11.18$ 7.13$ Urbandale 29,072 2,296,770,295$ 79,003$ 9.32$ 7.17$ Burlington 26,839 630,688,754$ 23,499$ 15.02$ 8.10$ Cedar Falls 36,145 1,195,193,364$ 33,067$ 12.99$ 8.10$ Cedar Rapids 120,758 5,202,552,672$ 43,082$ 15.22$ 8.10$ Clinton 27,772 874,745,362$ 31,497$ 15.49$ 8.10$ Council Bluffs 58,268 2,292,937,675$ 39,352$ 17.85$ 8.10$ Davenport 98,359 3,719,222,140$ 37,813$ 15.53$ 8.10$ Des Moines 198,682 6,397,515,722$ 32,200$ 16.58$ 8.10$ Dubuque 57,686 1,980,445,335$ 34,331$ 10.03$ 8.10$ Fort Dodge 25,136 585,617,486$ 23,298$ 18.44$ 8.10$ Iowa City 62,220 2,731,041,904$ 43,893$ 17.76$ 8.10$ Marion 26,294 1,141,690,053$ 43,420$ 13.64$ 8.10$ Marshalltown 25,009 728,958,128$ 29,148$ 13.94$ 8.10$ Mason City 29,172 956,424,547$ 32,786$ 13.39$ 8.10$ Muscatine 22,697 740,436,638$ 32,623$ 15.77$ 8.10$ Ottumwa 24,998 542,130,006$ 21,687$ 20.46$ 8.10$ Sioux City 85,013 2,136,515,423$ 25,132$ 17.30$ 8.10$ West Des Moines 46,403 3,720,483,153$ 80,178$ 12.05$ 8.10$ Average of 20 Cities (Not including Bettendorf) 14.32$ 7.74$

*Source: Iowa Department of Management - Local Budget Division**FY 11/12 proposed levy rate for City of Bettendorf. FY 10/11 levy rates for comparable cities.

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Impact of Rollback on Your Property Taxes: Levy Rate $12.60

Property Type

Assessed Value

FY 10/11 City Taxes

FY 12/13 City Taxes

Change

Residential

$200,000 $1,121 $1,162 + $41

Commercial

$500,000 $6,300 $6,300 No ChangeThe City’s property tax levy remains unchanged at $12.60

in FY 11/12. However, the state rollback, or percentage of residential property that is taxable, is increasing from 46.9094% to 48.5299% resulting in a 3.45% increase on residential property.

Commercial property is currently taxed at 100% of assessed value and as a result commercial property taxes will remain unchanged.

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2. Provides funding for all existing City services: Frozen operating budgets where

possible; with reductions in seasonal part time labor and professional services

Continued close monitoring of over time Funds wage increases for all union and

non-unions employees

FY 2011/12 Budget Highlights

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Union Settlements

Bargaining Unit FY 11/12

Fire 1.50% COLA 7/1/111.50% Deferred 1/1/12

Police 2.35% COLA.50% Deferred

AFSCME - General 3% COLA

AFSCME -Library

3% COLA

Non-UnionEmployees

3% COLA

Funds second year of four year contracts with all of our bargaining units

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FY 2011/12 Budget Highlights:3) Projects Major Revenues to remain Stable

Revenue source: FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 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 4,458,576

Road Use Tax 2,615,412 2,678,338 2,590,668 2,724,484 2,830,388 3,122,398

Gaming 1,963,498 2,076,120 1,912,972 1,684,304 1,700,000 1,720,000

Interest Earnings 1,833,719 1,792,190 1,484,476 935,570 1,127,957 1,039,226

Hotel/Motel Tax 742,038 879,403 774,409 781,543 805,000 805,000

Building Permits 470,024 468,244 364,989 547,500 561,800 546,800

Utility Tax 691,118 684,244 747,401 755,748 708,082 752,636

Cable Franchise 366,272 392,338 368,246 374,172 380,000 380,000

Total Major Revenues 41,869,751 45,119,476 47,387,665 49,043,048 52,855,560 54,471,338

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 55,129,283

10 Major Revenues as a % of All Revenues 94.94% 96.61% 95.56% 95.23% 96.97% 98.81%

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Building Permit History

Summary of Building Permits Issued by the City of Bettendorf

CalendarYear Number Value Number Value2010 2951 $58,148,406 115 $27,194,9802009 2700 $58,504,974 77 $21,057,1982008 3,095 $43,946,075 96 $24,200,9962007 3,420 $78,686,737 134 $37,831,5732006 3,680 $100,236,047 (a) 154 $34,873,9282005 3,717 $66,134,674 194 $41,928,3192004 3,397 $68,651,169 146 $30,265,1512003 3,247 $57,729,471 120 $25,087,0802002 2,980 $71,998,617 (b) 85 $19,495,4812001 3,392 $40,678,917 144 $26,184,0822000 3,487 $45,339,525 143 $24,158,5461999 3,740 $44,998,573 158 $26,947,091

(a) The signif icant increase in value of total permits from 2005 to 2006 w as due to construction of the Isle of Capri Hotel; the Clarissa Cook Hospice House; the ORA Medical Facility; the Glen shopping center; Hy-Vee grocery store; Logan Contractor Supply building; Armstrong Elementary School; the Crow Ridge Plaza retail facility; The Fountains Senior Living complex; and Southeast National Bank

(b) Primarily Trinity Regional Health System (46.2%)

Total PermitsNew Single-Family Attached &

Detached Homes

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FY 2011/12 Budget Proposes:4) All Major Fund Balances to remain stable

FundFY 06/07 Actual

FY 07/08 Actual

FY 08/09 Actual

FY 09/10 Actual

FY 10/11 Projected

FY 11/12 Projected

General 4,977,530 5,100,358 5,240,760 5,267,035 5,267,118 5,267,502

% of expenditures 26.29% 26.25% 26.95% 26.09% 26.47% 26.03%

Road Use 822,693 814,360 290,135 365,996 368,348 368,988

% of expenditures 31.72% 25.06% 6.80% 10.87% 10.57% 10.80%

Gaming 1,103,038 2,285,361 2,252,195 681,544 94,377 90,510

Sales Tax 2,359,455 2,960,922 2,428,645 638,608 188,219 192,649

Vehicle 1,034,810 1,420,612 931,210 726,276 872,069 1,202,069

Electronic Equipment 1,035,093 1,101,573 825,177 769,568 548,152 449,312

Health Insurance 1,001,596 977,293 980,367 987,458 987,458 987,458

Risk Management 611,731 612,146 612,224 627,788 627,788 627,788

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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

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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)

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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

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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

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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:

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Proposed Solid Waste Fee Increases Propose a 3% increase in fees beginning April 15, 2011

to balance revenues and expenditures – BREAK EVEN Increased cost of vehicle replacements and shorter life Increased cost of labor Increased tonnage at landfill-largely bulky waste and e-

wasteCity of BettendorfFY 2011/12 Budget ReviewGarbage Fees

Size

Current Monthly

Fee Annualized

Monthly fee

beginning 4/1/2011

Monthly Increase Annualized

Annual Increase

Monthly fee beginning

4/01/2012

Monthly fee beginning

4/01/2013

Monthly fee beginning

4/01/2014

Monthly fee beginning

4/01/2015

Monthly fee beginning

4/01/2016

Percentage increase 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

32 gallon/twice per mo 6.02 72.24 6.20 0.18 74.40 2.16 6.39 6.58 6.77 6.98 7.19

32 gallon 9.02 108.24 9.29 0.27 111.48 3.24 9.57 9.86 10.15 10.46 10.77

65 gallon 12.02 144.24 12.38 0.36 148.56 4.32 12.75 13.13 13.53 13.93 14.35

95 gallon 15.03 180.36 15.48 0.45 185.76 5.40 15.94 16.42 16.92 17.42 17.95

Note: Fee increases are needed to cover costs of operating and future replacement of vehicles.

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FY 2011/12 Budget Highlights: 11) Gaming Revenue - $1.720 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 - $203,167 Other Funds - $180,000

If not for Gaming Revenue, user fees would be significantly higher or property taxes would be needed to supplement budgets.

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Community Improvement Program FY 11/12 $15 million – Across all funds

$11.9 million: Public Works, Community Development, Traffic and Parks & Recreation $3 million: 1st 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 28th, North Oak, Oak Lane $1.39 million: Various recreation trails including Mississippi Riverfront Trail 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

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Community Improvement Program FY 11/12 continued

$11.9 million continued

• $520,000: Various Alley improvements • $500,000: Maplecrest: 29th 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

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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

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Faye’s Field

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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

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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

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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

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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

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City, School District, Tax Rate Residential Assessed Value of $250,000

Commercial Assessed Value of $500,000

City of Bettendorf, Bettendorf School District, $35.26282 per $1,000 value

$3,964 $17,631

City of Davenport, Davenport School District, $40.25165 per $1,000 value

$4,525 $20,126

City of Moline, School District #40, Moline Township code #1, $8.8035 per $100 value

$6,896 $14,673

City of Rock Island, School District #41, South Rock Island township code #2, $9.2693 per $100

value$7,261 $15,449

Iowa: Rollback on residential property: 46.9094% Rollback on commercial property: 100% Homestead exemption on residential property $4,850 subtracted from taxable value.Illinois: Residential property assessed at 1/3 total value. Commercial property assessed at 1/3 total value. Homestead exemption on residential property, up to $5,000 subtracted from 1/3 assessed value.

and Metro transit.

Property Tax Comparisonfor January 1, 2009 assessed valuations (current year)

The property tax comparison above reflects that the City of Bettendorf offers the most affordable property taxes on residential property in the Quad city area. City of Bettendorf taxes on commercial property remain competitive.

Township codes include taxes for the county, township, city, airport authority, Blackhawk College

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LEVY RATE COMPARISONCERTIFIED LEVIES PER $ 1,000 VALUATION

Fiscal Year City School County Assessor Area IX Other Total Levy

City of Bettendorf/Bettendorf Schools:

2010/11 $12.60000 $15.00820 $6.37607 $0.28465 $0.92444 $0.06946 $35.26282

City of Davenport/Davenport Schools:

2010/11 $15.53000 $17.11276 $6.37607 $0.23892 $0.92444 $0.06946 $40.25165

ALL LEVY RATES ARE FOR FY 10/11. Representatives from each taxing entity as of 2/23/11 have not finalized levies for FY 11/12 or do not anticipate significant changes.

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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

Estimated Impact of 40% Commercial Property Tax Rollback

City of Bettendorf

2010 Commercial Valuation 466,519,335 8 % Reduction in value 429,197,788 Lost Commercial Valuation 37,321,547 Levy Rate 12.60000Lost Tax Revenue 1 Year 470,251 Lost Tax Revenue 5 Years 2,351,257

Additional Lost Debt/PPEL Revenue2010 Commercial TIF Valuation 68,559,585 8 % Reduction in value 63,074,818 Lost Commercial Valuation 5,484,767 Debt/PPEL Levy Rate 5.00000Lost Tax Revenue 1 Year 27,424 Lost Tax Revenue 5 Years 137,119

TOTAL LOST TAX REVENUE 1 YEAR 497,675$ TOTAL LOST TAX REVENUE 5 YEARS 2,488,377$

*ESTIMATES ARE MADE USING 2010 VALUATIONS AND FY2011 LEVY RATES*5 YEAR ESTIMATE ASSUMES NO INCREASE IN COMMERCIAL VALUE

SOURCE: SCOTT COUNTY AUDITOR'S OFFICE

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Effect of Census 2010

Bettendorf, Iowa 2000 Census 2010 CensusEstimated increase

Population 31,275 33,217 1,942

Road Use Tax $ 2,939,850 $ 3,122,398 $ 182,548

Local Option Tax $ 4,380,000 $ 4,458,576 $ 78,576

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Budget Issues - Council 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

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Budget Issues - Council 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

Accomplishments for 10/11 Family Circle Recognition Citizen Survey Results Snow Removal I-74 Bridge and Downtown

Retention Strategy Completed Capital Projects Opening of the Scott Emergency

Communication Center

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Major Initiatives for 11/12• Waste Water Treatment Plant/ Equalization Basin; 7/1/12 +$0.17, annual increases thereafter;

• I-80/Middle Development; • Forest Grove Park Design• Continuation of Infrastructure plan• Downtown Master Plan

City's Economic Development Policy and StrategyDowntown Business Retention and Attraction StrategyStormwater Management: Policies and FeesNeighborhood Refurbishment Strategy  Rental Housing Registration and Inspection

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Questions and

Answers