City of North LibertyFY 15 Budget Goal Setting

November 19, 2013North Liberty City Council Chambers

6:30 P.M.

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

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.

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

Fund Balances ‐ June 30, 2013

$0

$400,000

$800,000

$1,200,000

$1,600,000

$2,000,000

General Fund Road Use Tax Fund Water Fund Wastewater Fund Stormwater Fund

FY 12 Actual FY 13 Actual FY 14 Budget

76% reserve

28% reserve

49% reserve

29% reserve

12% reserve

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

Land Valuation History

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Assessed

Taxable

Tax Rate History

$10.25 $10.15 

$10.16 

$10.97  $11.34  $10.91 $11.20 

$11.03 

$11.03  $11.03 

$8.00

$8.50

$9.00

$9.50

$10.00

$10.50

$11.00

$11.50

$12.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Rollback Data

97.00%

97.50%

98.00%

98.50%

99.00%

99.50%

100.00%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Commercial

40.00%

42.00%

44.00%

46.00%

48.00%

50.00%

52.00%

54.00%

56.00%

58.00%

60.00%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Residential

Breakdown of Property Taxes Paid ‐FY 14

Iowa City School District (in NL) CCA School District (in NL) 

North Liberty34%

Johnson County21%

ICCSD42%

Community College3%

State0%

Iowa City School District

North Liberty32%

Johnson County21%

CCASD44%

Community College3%

State0%

Clear Creek Amana School District

2012 Goal Setting Progress ReportOn‐Going Priorities

Approximate Percent Complete20% 40% 60% 80% 100%

1. Highway 965

A. Construction of Phase 2Comments: Phase 2 under design, expected bid date: February 2014

B. Identify outside funding sources to implement Highway 965 Master PlanComments:  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 phasesComments:  On‐going; phase 2 currently in design; future phases planned for in CIP. 

D. Provide on‐going information/education to public regarding Highway 965 projectComments:  On‐going; continue to provide press releases and website updates as to the status of Hwy 965.

2. Facility Improvements

A. Street Maintenance FacilityComments:  Completed

B. Library ExpansionComments:  Completed

C. Ranshaw HouseComments:  Phase 1 and 2 completed, seeking grant funding for Phase 3.

3. Evaluate need for infrastructure upgrades in original part of cityComments:  On going; recently completed sanitary sewer study; annually inspect storm sewers; water and wastewater facility studies underway. 

4. Cool Cities & Sustainability InitiativesComments: 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.

2012 Goal Setting Progress Report6. Water System Facility StudyComments: Completed

7. Review Water & Wastewater RatesComments:   On‐going; rates adjusted in FY 13 and 14; staff to review for FY 15.

8. Economic Development PlanComments:   Completed 

9. North Dubuque Street ImprovementsComments:  Completed

10. Sanitary Sewer Improvements, Phase 1 (FOX Engineering Study)Comments:  Project underway; Shive Hattery currently designing improvements, expected bid date: February 2014.

Priority Projects, Programs, Policies and Initiatives Approximate Percent Complete

20% 40% 60% 80% 100%11. Update Parks Plan

A. Ball field NeedsComments:  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 ParkComments:  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 ParkComments: Completed

12. Jones Boulevard, Phase 2Comments:   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 CommitteeComments: Completed

15. Complete Branding ExerciseComments:  Project on hold as per Council Direction.

Upcoming Projects & Borrowing Schedule

Project Name DescriptionEstimated 

CostProposed Funding 

Source Status

East Trunk Sewer DesignDesign east trunk sewer to serve basins1 and 2 as per the FOX Engineeringstudy.

$400,000 Revenue Bond Will seek Council approval in November 2013

Sewer Improvements

Replace deteriorating sanitary sewermain on Cherry Street and upgradetrunk line from WWTP to VandelloDrive.

$1,500,000 Revenue Bond Under design; expected bid date: Feb 2014

Hwy 965, Phase 2

Reconstruction and widening of Hwy965 from Penn Street north, to 230thStreet, including the reconstruction ofthe Scales Bend Road/Hwy 965intersection.

$6,259,000 Federal funding and GO/TIF Bond

Under design; expected bid date: Feb 2014

N. Front Street

Asphalt reconstruction of MehaffeyBridge Road. Improvements include a36‐ft road with wide shoulders andadding turn lane at Cedar SpringsSubdivision.

$1,000,000 GO/TIF and GO Bond Under design; expected bid date: Mar 2014

Date Source Amount Project

2nd Qrt ‐ 2014

GO/TIF and GO Bond $1,000,000 N. Front Street

GO/TIF Bond $4,475,000 Hwy 965, Phase 2

Sewer Revenue Bond$1,400,000 Sewer Improvements

$400,000 East Trunk Sewer Design

Total $5,475,000

Tax Rate Comparisons – FY 14Johnson County Cities Comparable Iowa Cities

(Population Range 9,000 to 20,000)

$0.00 $4.00 $8.00 $12.00 $16.00 $20.00

Shueyville

Hills

Swisher

Lone Tree

Tiffin

Oxford

Solon

UniversityHeights

North Liberty

West Branch

Coralville

Iowa City

$7.10 

$8.10 

$8.10 

$9.28 

$10.62 

$10.84 

$10.87 

$10.90 

$11.03 

$12.04 

$13.52 

$16.81 

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00

Altoona

Clive

Pella

North Liberty

Johnston

Indianola

Spencer

Carroll

Le Mars

Waukee

Coralville

Storm Lake

Oskaloosa

Waverly

Grinnell

Fort Madison

Newton

Boone

Norwalk

Keokuk

Fairfield

$9.14

$9.99

$10.15

$11.03

$11.15

$11.20

$11.83

$12.90

$13.50

$13.50

$13.53

$13.56

$14.00

$14.25

$14.42

$14.89

$15.15

$15.62

$15.69

$15.90

$15.98

FY 14 Misc. Capital Projects

Project Description Department CostAverage 

Score Rank

East Trunk SewerDesign sanitary sewer extensions east of the current corporate limits, as delineatedby the current Fox Engineering study, to provide service necessary for futureannexations.

Wastewater $350,000  2.17 1

North Front Street Asphalt reconstruction of Mehaffey Bridge Road. Improvements include a 36‐ft roadwith wide shoulders, adding turn lanes at Cedar Springs and Jefferson Addition. Streets $877,000  2.33 2

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 $250,000  2.67 3

Trail Network Upgrades

Replace 4‐foot wide sidewalk with 8‐foot wide trail along Cherry Street, frompedestrian underpass to north/south trail; install 8‐foot wide trail from Fox ValleyDrive to Wood Duck Court; connect Fox Run and Cedar Springs subdivision byinstalling trail between gap in sidewalk.

Parks $95,000  4.67 4

Commercial Drive Extension Design and construct the extension of Commercial Drive to Zeller Street (does notinclude land acquisition). Street $92,000  5.17 5

Penn Meadows Trail Grade and asphalt trail with segments from parking lot to shelters (seeComprehensive Park Plan). Parks $150,000  5.5 6

Penn Meadows Concessions Building Construct new concessions building between north and south 4‐plexes at PennMeadows Park. Parks $350,000  5.5 6

City Council Proposed Budget GoalsGoal Staff Comments Council Consensus

Complete Hwy 965 enhancements for the entire length of the roadway in one summer.  

Physically and financially not feasible to complete $20+ million in improvements in one construction season.  By phasing the 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. 

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. 

Design and build a modern fire station to accommodate a population of 20,000.  

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.

Provide adequate infrastructure, including roads, to the new high school with collaboration from the affected governing bodies. Currently in the planning stages.

Extend Commercial Drive to Zeller St.  Project in CIP for FY 14; further direction from Council is needed.

With the exception of the capital projects, keep the tax rate the same. Varying opinions on tax rate; group discussion 

and consensus needed.

Eliminate the use of TIF for new projects that are not already planned.

Less use of TIF would have impacts on the number of projects being completed and/or the debt service tax levy.

City Council Proposed Budget GoalsGoal Staff Comments Council Consensus

Continue forward with plans for water and wastewater treatment plant expansions to stay on goal completion dates.

Facility plans are currently being reviewed by DNR.  Anticipate implementing the plan once DNR approved plans.

End fixed route transit service and focus on SEATS and in‐community transit needs.

Varying opinions on transit; group discussion and consensus needed.

Establish a budget surplus of 30% at the end of this fiscal year and increase to 32.5 % for FY 15.  

General Fund reserve will be close to these percentages; however a levy increase may be needed to get to 30% and 32.5%.

Proceed with active financial planning for a special census during the FY 15 time period.

Cost estimate already obtained ($160k).  

Evaluate public transportation costs vs. revenues; consider a revenue neutral program; review SEATS program.  

Varying opinions on transit; group discussion and consensus needed.

Examine use of Storm Water fees and Hotel/Motel tax; use for projects; considering increasing storm water fee if necessary. 

Fees are examined every year; staff will provide any additional information requested by Council.

Try to maintain tax rate with the understanding that the debt service levy and trust and agency levy may need to increase.  

Varying opinions on tax rate; group discussion and consensus needed.

Community Visioning.  Project selected as a goal in 2012; however Council decided to put on hold and not allocated funding in FY 14.  

Police Department move/build along with city campus.  

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. 

Considering adding the reconstruction of Dubuque Street to the CIP.

With the new high school proposed to be constructed in 2017, reconstruction of Dubuque Street should be evaluated.

City Council Proposed Budget GoalsGoal 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.

Staff development needs ‐ formal leadership training. 

Currently, department heads are encouraged to budget for and attend applicable leadership and training events. 

965 plans for next year – information to public on timing/planning for traffic disruption.  

Currently working with engineer on traffic staging plan.  Intend to rollout a communication plan after first of the year.

Water department move to streets/parks campus.

Included in facilities plan.  Move will occur when new water plant is constructed (2017).

Evaluate and improve aging infrastructure in old part of town.

We continue to do so on an informal basis through the development and implementation of the CIP.  A more formal program could be considered.

Budget to install a play feature or attraction at Centennial Park.

Project in CIP for FY 15.  Further direction from Council is needed.

Focus on extending needed infrastructure eastward in time to open a new school by 2017.

Currently in the planning stages.

Consider levy increase now, as it is projected to increase over the next few years.

Varying opinions on tax rate; group discussion and consensus needed.

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

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.