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FY 2021 Budget WorkshopO p e r a t i n g F u n d s
January 18, 2020 | Davenport City Hall
2
Schedule
January 18th | Operating Funds• FY 2019 Financial Review• FY 2020 Financial Update• Fund Accounting and Structure Essentials• FY 2021 Operating Budget Review
January 25th | Capital Funds• Debt Service Fund• Local Option Sales Tax Fund• Road Use Tax Fund• Six-year Capital Improvement Program
February 1st | City Administrator’s Budget & Work Plan• Previous Workshop Follow-Up• City Administrator’s Recommended FY 2021 Budget
Budget Introduct ion
3
4
FY 2021 Budget Packets
Overview of draft FY 2021 Budget binders
› Overview Memo
› Budget Summary Reports
› Department Business Plans & Detail Pages
› CIP Summary Report
› CIP Detail Pages
5
FY 2019 Year-End Summary Increased General Fund reserves during FY 2019, bringing total unassigned reserves
category to $12.0M.
Represents 24.8% of operating expenditures.
City Council Policy is between 17% and 25%.
-$12,000,000
-$10,000,000
-$8,000,000
-$6,000,000
-$4,000,000
-$2,000,000
$0Negative Cash Funds Totals
6
General Fund Unassigned Reserves
$-
$2
$4
$6
$8
$10
$12
$14
Mill
ions
Unassigned FundBalance
Minimum CouncilOperatingReserve (17%)Maximum CouncilOperatingReserve (25%)
24.8%
7
Liquidity Policy –Governmental Funds FY 2019
$0.0
$25.0
$50.0
$75.0
$100.0
$125.0
$150.0
$175.0
$200.0
Mill
ions
Current Assets in Excess of Current Liabilities
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
Mill
ions
Cash & Short-Term Investments of at least 50% of Current Liabilities
326% 200%
8
Liquidity Policy –Business Type Funds FY 2019
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Mill
ions
Current Assets of at least 75% of Current Liabilities
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Mill
ions
Cash & Short-term Investments of at least 15% of Current Liabilities
75%
15%
276% 121%
9
Bond RatingsDavenport’s Current Ratings
AA from Standard and Poor’s
Aa3 from Moody’s
Key Notes from S&P’s Report:
Strong budgetary performance
Very strong liquidity and adequate
economy
Key Notes from Moody’s Report:
“Positive Outlook”
Operating liquidity improvement is
expected to remain stable
Large and stable tax base in regional
economic center
10
FY 2019 ReviewFund or Fund Type June 30, 2018 June 30, 2019 Change Percentage
Governmental Funds $61,709,255Unrestricted Cash
$76,932,663Unrestricted Cash
+$15,223,408Unrestricted Cash +24.67%
General Fund(Unassigned)
$11,548,794Fund Balance
$12,028,594Fund Balance
+$479,800Fund Balance +4.15%
Trust & Agency Fund $3,642,895Fund Balance
$3,697,983Fund Balance
+$55,088Fund Balance +1.51%
Employee Insurance Fund
$2,554,026Net Position
$3,478,647Net Position
+$924,621Net Position +36.20%
Risk Fund -$1,344,558Net Position
-$1,831,630Net Position
-$487,072Net Position -36.23%
Hotel/Motel Tax Fund $1,430,464Fund Balance
$1,847,284Fund Balance
+$416,820Fund Balance +29.14%
Local Sales Tax Fund $8,266,650Cash
$9,653,170Cash
+$1,386,520Cash +16.77%
Sewer Fund(Operations)
$3,522,185Cash
$6,579,065Cash
+$3,056,880Cash +86.79%
11
FY 2019 ReviewFund or Fund Type June 30, 2017 June 30, 2018 Change Percentage
Debt Service Fund $6,432,485Cash
$7,747,810Cash
+$1,315,325Cash +20.45%
Road Use Tax Fund $1,853,992Fund Balance
$1,320,717Fund Balance
-$533,275Fund Balance -28.76%
Clean Water Fund $2,702,626Cash
$3,031,852Cash
+$329,226Cash +12.18%
Golf Fund $14,877Cash
$12,020Cash
-$2,857Cash -19.20%
Airport Fund $0Cash
$5,706Cash
$5,706Cash N/A
Transit Fund $88,906Cash
$675Cash
-88,231Cash -99.24%
Solid Waste Fund $1,120,803Cash
$1,336,356Cash
+$215,553Cash +19.23%
Parking Fund $2,947Cash
$67,319Cash
+$64,372Cash +2,184.32%
River’s Edge Fund $4,396Cash
$3,365Cash
-$1,031Cash -23.45%
12
Trust & Agency Fund Reserves
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Fund Balance
25% OperatingReserve Goal
FY 2020 Update
13
14
FY 2020 Payroll Costs
0%
20%
40%
60%
80%
100%
% of Payroll BudgetUsed
Payroll costs are at 45.2% of budgeted levels, which is slightly below the expected level
of 46.2% as of the end of December
15
FY 2020 Healthcare Costs Claims and expenditures are currently trending below the original budget of $15.8M at
$14.1M.
As of the end of December, claims for FY 2020 are 1.7% lower than claims in FY 2019.
FY 2020 monthly average is $1,173,000.
$-
$500,000
$1,000,000
$1,500,000FY 2020 | Monthly Claims Totals
Claims TotalLinear (Claims Total)Linear Trendline
16
FY 2020 Departments Year-to-DateDepartment General Fund and
Trust & Agency All Funds Percent of Total Budget Used
Mayor $84,390 $84,390 48.1%
Council $269,201 $269,390 52.9%
Finance $983,001 $4,523,266 56.0%
City Administration $430,805 $560,367 45.3%
Legal - $446,009 51.7%
Human Resources $433,004 $8,330,601 43.5%
CPED $735,550 $7,359,666 43.2%
Civil Rights $206,559 $281,202 47.9%
50.1% Year Complete
17
FY 2020 Departments Year-to-Date
Department General Fund and Trust & Agency All Funds Percent of Total Budget
Used
Development & Neighborhood Services $1,148,725 $1,458,032 50.1%
Public Works $2,130,818 $23,839,703 50.9%
Police Department $13,958,649 $14,225,565 50.4%
Fire Department $9,771,378 $9,879,028 51.0%
Parks & Recreation $2,512,610 $4,336,929 54.0%
Library $2,027,867 $2,675,282 49.1%
50.1% Year Complete
Fund Account ing & Structure Essent ia ls
18
Fund Accounting & Structure Essentials
The purpose of fund accounting is to demonstrate compliance with federal, state, and local
laws with sources of money.
The city has 109 funds.
There are four major fund types:
› Governmental Funds
› Special Revenue Funds
› Internal Service Funds
› Enterprise Funds
19
20
Fund Essentials – Governmental Funds
General Fund
- Property tax levy ($8.10/$1,000 taxable value) (capped)
- Any legal public use- Broadest spending category- Public safety, code compliance, parks, support services
21
Fund Essentials – Governmental Funds
Trust & Agency Fund
- Revenue is received from the trust and agency property tax levy (not capped)
- Used for costs related to employee benefits like social security, health insurance and pensions
22
Fund Essentials – Governmental Funds
Hotel/Motel Tax Fund
- Generated by the hotel/motel tax of 7% for lodging in Davenport
- 50% for recreational, convention, cultural or entertainment facilities, or for thepromotion and encouragement of tourist and convention business in the city- 50% any legal public use
23
Fund Essentials – Governmental Funds
Library Special Levy Find
- Property tax levy ($0.27/$1,000 of taxable value) (capped)
- Library personnel costs, materials, and other items that enhance the library services
24
Fund Essentials – Governmental Funds
Flood Fund
- No designated revenue source- If received, reimbursed amounts from federal and state grants
- Costs associated with the city’s response to flooding
25
Fund Essentials – Governmental Funds
Emergency Tax Levy Fund
- Property tax levy ($0.27/$1,000 of taxable value) (capped)
- Transferred to the general fund
26
Fund Essentials – Governmental Funds
General Debt Service
- Debt service levy ($2.05/$1,000 of taxable value)(not capped)
- Expenditures related to the city’s general debt obligations (principal and interest payments)
27
Fund Essentials – Governmental Funds
Capital Improvement Fund- General obligation bonds, local sales tax receipts, and enterprise fund user fees- Federal and state grants
- Expenditures related to the acquisition, construction, renovation, or replacement of any major permanent physical asset in the community and related expenditures
28
Fund Essentials – Special Revenue Funds
Self-Supporting Municipal Improvement Districts- Voluntary property tax approved by property owners of the district
- Operating costs and capital improvements in the district
29
Fund Essentials – Special Revenue Funds
Road Use Tax Fund
- Generated by the motor fuel tax at the pump, vehicle registrations, and car rentals
- Use of day labor or public or private contracts for construction, reconstruction, or improvement projects on the municipal street system
30
Fund Essentials – Special Revenue Funds
Grant Funds
- Revenue is received through federal and state grant awards
- Special projects, community planning and economic development, etc. - Currently five active grant funds
31
Fund Essentials – Special Revenue Funds
Local Sales Tax- Voted by referendum in 1988- 1% of gross sales collected within Scott County redistributed by formula to cities in the county
- 60% used for property tax relief - 40% used for capital purchases and projects- Public safety vehicle purchases, parks vehicles, demolition CIP projects, debt service payments, traffic signal improvements, etc.
32
Fund Essentials – Special Revenue Funds
Riverfront Improvement Fund
- Revenue received from rents of levee land and buildings
- Any projects or expenditures related to the city-owned land along the levee of the Mississippi River- Under the administration of the Riverfront Improvement Commission
33
Fund Essentials – Special Revenue Funds
Youth Sports Fund
- Revenue received primarily from registration fees for youth sports activities (formerly Dad’s Club)
- Employee expenditures or any additional expenditures related to the youth sports and activities
34
Fund Essentials – Special Revenue Funds
Tax Increment Financing Funds
- Property taxes designated for the TIF district to meet economic development agreement obligations
- Expenditures of the various tax increment financing (TIF) districts needed to satisfy economic development agreement obligations
35
Fund Essentials – Internal Service Funds
Risk Fund
- All other funds/departments contribute to this fund based on risk premiums
- Employee workers’ compensation claims, property/liability insurance, and legal claims and personnel
36
Fund Essentials – Internal Service Funds
IT Fund
- All other funds/departments contribute to this fund based on user charges
- IT Department payroll, software maintenance, electronic purchases, network security, etc.
37
Fund Essentials – Internal Service Funds
Employee Insurance Fund
- All other funds/departments contribute to this fund based on per employee health insurance premiums
- Expenses related to claims, related insurance products, and consulting services
38
Fund Essentials – Enterprise Funds
Sewer Fund
- Sewer fees
- Costs generated from operating, maintaining, or improving the sewer system- Engineering and sewer personnel, water pollution control plant operations, sewer lateral program, emergency sewer repairs, etc.
39
Fund Essentials – Enterprise Funds
Water Pollution ControlPlant Fund
- Cities whose wastewater is treated at the plant (including Davenport)
- Compost facility sales
- Operation, maintenance, and improvement of the city’s sewage treatment plant and compost facility
40
Fund Essentials – Enterprise Funds
Clean Water Utility Fund
- Property owners clean water utility fee (ERU)
- Expenses related to the operation, maintenance, and improvement of the stormwater collection system
41
Fund Essentials – Enterprise Funds
Parking Fund
- Ramp and lot charges, retail rental space at city-owned ramps, and parking fines
- Expenses related to the operation, maintenance, and improvement of city-owned ramps and parking lots and the enforcement of city parking ordinances
42
Fund Essentials – Enterprise Funds
Transit Fund
- Property tax levy ($0.91/$1,000 of taxable value) (capped), grants, and rider fares
- Transit employee costs, farebox maintenance, fuel, bus maintenance, service agreements, etc.
43
Fund Essentials – Enterprise Funds
Airport Fund
- Hanger rental, land rental, and fuel sales
- Expenses related to the operation, maintenance, and improvement of the city’s municipal commuter airport
44
Fund Essentials – Enterprise Funds
RiverCenter Fund
- Facility charges- Subsidy provided by hotel/motel tax fund
- Expenses related to the operation, maintenance, and improvement of the city’s convention center (RiverCenter) and the Adler Theatre
45
Fund Essentials – Enterprise Funds
Golf Course Fund
- Golf fees, cart rentals, and concessions
- Expenses related to the operation, maintenance, and improvement of three city-owned golf courses: Duck Creek, Emeis, and Red Hawk
46
Fund Essentials – Enterprise Funds
River’s Edge Fund
- User fees for soccer leagues, ice/turf rentals, and special programs- Subsidy provided by the hotel/motel tax fund
- River’s Edge personnel, operations, maintenance, and improvement of the River’s Edge, utilities, etc.
FY 2021 Operat ing Budget
47
48
FY 2021 Budget Highlights
Complies with City Council policy for reserve and liquidity targets, while
maintaining the tax levy rate ($16.78/$1,000 taxable valuation)
2020/2021 Council Priority Inclusions
Development of the Public Safety Analytics Division
Addition of a Public Safety Business Administrator will allow sworn
personnel to focus on community-facing public safety initiatives
Increased personnel for neighborhood services
Cyber security
49
FY 2021 Budget
AdoptedFY 2020
ProposedFY 2021 Change
Operating $145,941,281 $151,288,771 +3.66%
Capital $49,356,669 $47,518,921 -3.72%
Debt $32,537,529 $33,171,832 +1.95%
Total $227,835,979 $231,979,524 +1.82%
50
FY 2021 Rollback Amounts
Property Class FY 2020 FY 2021
Agricultural 56.1324% 81.4832%
Residential 56.9180% 55.0743%
Commercial/Industrial 90% 90%
Multi-Residential 75% 71.25%
-3.24%
-5.00%
+45.16%
51
100% Valuation
$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5$5.0$5.5
Bill
ions
Residential
Commercial
Multi-Residential
+4.7%
+9.4%
+9.1%
52
Taxable Valuations
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Bill
ions
ResidentialCommercialMulti-Residential
+1.6%
+18.5%
+9.9%
53
FY 2021 Budget
State Backfill
Through SF 295, the backfill provides ≈$3M annually to Davenport to backfill
the property tax dollars lost from 10% reduction in commercial and industrial
property taxes
2018 Legislative Session threatened to reduce and/or eliminate the backfill
2020 Legislative Session is expected to be similar
The goal to mitigate the impact of the backfill on the operating funds has
been achieved. Realized backfill revenues will be used for one time capital
projects
54
FY 2021 Budget
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Commercial Taxes & Rollback
55
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $383,183 74.3%
Supplies &Services $111,368 21.6%
Allocated Costs $21,300 4.1%
Fund Total Percent of Total Budget
General Fund $344,306 66.7%
Trust & Agency $171,545 33.3%
City Council Office
56
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $150,309 81.8%
Supplies &Services $18,250 9.9%
Allocated Costs $15,300 8.3%
Fund Total Percent of Total Budget
General Fund $127,397 69.3%
Trust & Agency $56,462 30.7%
Mayor’s Office
57
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $2,591,237 29.6%
Supplies &Services $5,691,826 65.0%
Equipment $25,000 0.3%
Allocated Costs $444,217 5.1%
Fund Total Percent of Total Budget
General Fund $1,443,877 16.5%
Trust & Agency $472,961 5.4%
Hotel/Motel Tax $48,219 0.6%
Risk Management Fund $5,771,228 65.9%
Sewer $533,173 6.1%
Solid Waste $163,876 1.9%Clean Water Fund $75,383 0.9%
Parking Fund $218,563 2.5%Local Option Sales Tax $25,000 0.3%
Finance Department
58
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $926,727 70.0%
Supplies &Services $265,530 20.1%
Allocated Costs $130,897 9.9%
Fund Total Percent of Total Budget
General Fund $918,494 69.4%
Trust & Agency $258,904 19.6%
Hotel/Motel Tax $142,572 10.8%
Risk Management Fund $3,184 0.2%
City Administration Department
59
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $1,347,108 46.5%
Supplies &Services $1,468,255 50.7%
Allocated Costs $83,191 2.9%
Fund Total Percent of Total Budget
IT Fund $2,898,554 100%
Information Technology Department
60
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $692,848 78.3%
Supplies &Services $152,101 17.2%
Allocated Costs $39,800 4.5%
Fund Total Percent of Total Budget
Risk Fund $884,749 100%
Legal Department
61
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $1,924,229 12.6%
Supplies &Services $12,542,738 81.9%
Equipment $13,000 0.1%
Allocated Costs $837,777 5.5%
Fund Total Percent of Total Budget
General Fund $642,246 4.2%Trust & Agency Fund $167,486 1.1%
TIF Funds $3,472,100 22.7%Heritage Operating Fund $713,364 4.7%Scattered Sites Housing
Fund $366,499 2.4%
Section 8 Housing Fund $4,222,891 27.6%CDBG Fund $3,010,727 19.7%
HOME Investment Fund $2,000,000 13.1%
Community Planning and Economic Development Department
62
FY 2021 Department Detail
Fund Total Percent of Total Budget
Residential Exterior Improvement Fund $20,000 0.1%
Storm Water Utility Fund $10,770 0.1%
Community Grant Loan Fund $10,000 0.1%
Local Option Sales Tax $205,412 1.3%
Housing-EconomicRecovery $153,423 1.0%
Community Planning and Economic Development Department
63
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $482,360 83.0%
Supplies &Services $50,092 8.6%
Allocated Costs $48,426 8.3%
Fund Total Percent of Total Budget
General Fund $344,703 59.3%
Trust & Agency Fund $112,229 19.3%
Fair Housing Fund $123,946 21.3%
Civil Rights Department
64
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $28,864,455 59.1%
Supplies &Services $9,376,610 19.2%
Equipment $1,860,950 3.8%
Allocated Costs $8,771,373 17.9%
Public Works DepartmentFund Total Percent of
Total BudgetGeneral Fund $2,548,412 5.2%
Trust & Agency Fund $1,460,139 3.0%Sewer Operating Fund $4,572,596 9.4%Water Pollution Control
Plant Fund $8,907,612 18.2%
Solid Waste Fund $5,589,414 11.4%
Clean Water Fund $2,385,027 4.9%Transit Fund $7,200,721 14.7%Airport Fund $316,904 0.6%
65
FY 2021 Department DetailPublic Works Department
Fund Total Percent of Total Budget
Road Use Tax Fund $13,432,091 27.5%
Local Option Sales Tax $2,280,972 4.7%
Hotel/Motel Tax $141,700 0.3%
Parking $37,800 0.1%
66
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $2,615,181 73.8%
Supplies &Services $518,630 14.6%
Equipment $28,000 0.8%
Allocated Costs $381,630 17.9%
Development and Neighborhood Services Department
Fund Total Percent of Total Budget
General Fund $1,945,251 54.9%
Trust & Agency Fund $793,534 22.4%
Parking Fund $768,940 21.7%
Local Option Sales Tax $28,000 0.8%
Clean Water Fund $7,716 0.2%
67
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $25,366,573 89.2%
Supplies &Services $950,030 3.3%
Equipment $300,219 1.1%
Allocated Costs $1,823,369 6.4%
Fund Total Percent of Total Budget
General Fund $19,254,407 67.7%
Trust & Agency $8,424,311 29.6%
Special Public SafetyFund $422,654 1.5%
Local Option Sales Tax $338,819 1.2%
Police Department
68
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $18,893,228 94.2%
Supplies &Services $463,117 2.3%
Equipment $183,500 0.9%
Allocated Costs $516,650 2.6%
Fund Total Percent of Total Budget
General Fund $13,254,608 66.1%
Trust & Agency $6,629,887 33.1%
Local Option Sales Tax $172,000 0.9%
Fire Department
69
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $5,099,783 62.2%
Supplies &Services $1,873,020 1.8%
Equipment $149,000 1.8%
Allocated Costs $1,081,303 13.2%
Parks and Recreation Department
Fund Total Percent of Total Budget
General Fund $4,200,301 51.2%
Trust & Agency Fund $831,088 10.1%
Golf Course $1,937,727 23.6%
Youth Sports $194,383 2.4%
Local Option Sales Tax $149,000 1.8%
River’s Edge $890,607 10.9%
70
FY 2021 Department Detail
Category Total Percent of Total Budget
Employee Expense $4,711,275 84.2%
Supplies &Services $542,839 9.7%
Allocated Costs $338,911 6.1%
Library DepartmentFund Total Percent of
Total Budget
General Fund $2,784,063 49.8%
Special Library Levy Fund $1,362,593 24.4%
Trust & Agency $1,446,369 25.9%
71
FY 2021 Department Detail
Category Total Percent of Total Budget
Supplies &Services $6,411,694 96.8%
Allocated Costs $211,156 3.2%
RiverCenter / Adler Theatre
Fund Total Percent of Total Budget
Hotel/Motel Tax Fund $1,496,000 22.6%
RiverCenter Fund $5,126,850 77.4%
72
FY 2021 Budget
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
Mill
ions
General Fund
Revenues
Expenditures
+$20K
$17.0
$19.0
$21.0
$23.0
$25.0
Mill
ions
Trust & Agency Fund
Revenues
Expenditures
+$7K
73
FY 2021 Budget
73%7%
4%
3%2%
2%9%
General Fund Revenues
Taxes
Charges for Services
Licenses & Permits
Intergovernmental
Fines & Forfeits
Use of Monies & Property
Miscellaneous
78%
12%
10%
0% 0%
General Fund Expenditures
Salaries & Benefits
Allocated Costs
Supplies
Equipment
Non department
74
FY 2021 Budget
97%
0% 2% 1%
Trust & Agency Fund Revenues
Taxes
Charges for Services
Intergovernmental
Miscellaneous88%
12%
Trust & Agency Fund Expenditures
Salaries & Benefits
Allocated Costs
75
FY 2021 Budget
81%
5%
2% 3%7% 1% 1%
General Fund and Trust & Agency Fund Revenues
Taxes
Charges for Services
Licenses & Permits
Intergovernmental
Miscellaneous
Fines & Forfeits
Use of Monies & Property
81%
12%
7%0%
General Fund and Trust & Agency Fund Expenditures
Salaries & Benefits
Allocated Costs
Supplies
Equipment
76
FY 2021 Budget
AdoptedFY 2020
ProposedFY 2021 Change
Salaries & Benefits $60,166,031 $61,678,528 +2.51%
Supplies $4,797,451 $4,969,807 +3.59%
Equipment $77,500 $77,500 0%
Allocated Costs $8,391,521 $9,280,805 +10.60%
Total $73,432,503 $76,006,640 +3.51%
77
FY 2021 Budget
AdoptedFY 2020
ProposedFY 2021 Percent Change
Salaries $36,437,464 $37,102,631 +1.8%
Overtime $856,193 $888,693 +3.8%
Health Insurance $10,676,467 $11,197,959 +4.9%
Pension $10,813,634 $11,236,600 +3.9%
Other $1,382,273 $1,252,645 -9.4%
Total $60,166,031 $61,678,528 +2.5%
Salaries and Benefits Breakdown
FY 2021 Budget
Public Safety Analytics Division
Improve the utilization of public safety data to
drive operating decisions in the Police and
Fire Departments
Allow sworn staff to focus on the goal of a
well protected community
FY 2021 Budget Impact: $153,376
78
FY 2021 Budget
Cyber Security
Network Security Architect
Improve Davenport’s proactive efforts to build
an IT network that is sustainable and secure
from external attacks and threats
FY 2021 Budget Impact: $115,305
79
FY 2021 Budget
Enhanced Neighborhood Services
Code Enforcement Officer I
Improve the City’s response to nuisance and
code violations throughout Davenport
FY 2021 Budget Impact: $73,971
80
FY 2021 Budget
Davenport Public Library – Increased Staffing
Increase staffing to allow the Eastern and
Fairmont Library Branches to remain open
until 8:00pm Monday through Thursday
FY 2021 Budget Impact: $82,140
81
82
FY 2021 Budget
$0.0$2.0$4.0$6.0$8.0
$10.0$12.0$14.0$16.0
Milli
ons
Employee Health Costs
Average annual
increase 5.13%
83
FY 2021 Budget
$0.0$1.0$2.0$3.0$4.0$5.0$6.0
Milli
ons
Employee Health Fund – Cash Reserves
84
Hotel/Motel Tax Fund
52%24%
15%
2%2% 3% 2%
FY 2021 Expenditures
Payment to Other Agencies*
RiverCenter
CIP (RiverCenter)
Maintenance & Utilities
Personnel
Marketing
River's Edge
*Other agencies include the Hotel Blackhawk/Current Reimbursement, Visit Quad Cities,civic support for special events, CASI, Putnam Museum, and the Quad Cities Air Show
85
Hotel/Motel Tax Fund
$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0
Milli
ons
Hotel/Motel Tax Fund Revenue
86
Hotel/Motel Tax FundFY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Revenue
Hotel Motel Tax $2,940,000 $2,984,100 $3,028,862 $3,074,294 $3,120,409 $3,167,215 $3,214,723 $3,262,944 $3,311,888 $3,361,567
Expenditures
Payment to Other Agency $1,331,000 $1,431,000 $1,471,000 $1,571,000 $1,621,000 $1,618,000 $1,533,000 $1,533,000 $1,533,000 $1,533,000
All Other Costs $1,602,491 $1,608,848 $1,615,336 $1,621,961 $1,628,726 $1,635,633 $1,642,687 $1,649,892 $1,657,251 $1,664,769
Total
Surplus/(Deficit) $(93,491) $(95,748) $(157,475) $(168,667) $(129,317) $(86,418) $39,036 $80,052 $121,637 $163,797
Ending Fund Balance $1,671,217 $1,575,469 $1,417,994 $1,249,328 $1,120,011 $1,033,593 $1,072,629 $1,152,682 $1,274,319 $1,438,116
87
Sewer Fund Cash Balance
-$6
-$4
-$2
$0
$2
$4
$6
$8
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Milli
ons
88
Sewer Fee Comparables
77.04 61.55
49.22 46.22 39.79 36.65 36.08 33.59 29.07 28.35 28.24
22.80
$0$10$20$30$40$50$60$70$80$90
Monthly Sewer Rate for 8 CCF
89
Sewer and WPCP Funds
• The Joint Use Cities developed a new 28E agreement to jointlyown, use, maintain, and improve certain interceptor sewers, thewater pollution control plant, and the compost facility.
• The new agreement establishes a new funding model with thefollowing funds:
› Water Pollution Control Plant (operations)› Water Pollution Control Plant Equipment Replacement
(15%)› Water Pollution Control Plant Reserve (2%)› Water Pollution Control Plan Debt (as necessary)
• The Joint Use Cities new 28E agreement was approved bycouncil on November 26, 2019.
• The new funding model results in a $373,023 (5.02%) increase inthe FY 2021 Budget.
90
No Fault Sewer Backup Reimbursement
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Revenue $220,5245 $265,715 $296,456 $292,156 $250,230 $58,982
Expense $219,911 $80,359 $253,287 $155,316 $24,993 $71,598
Quarterly Rate $2.00 $2.00 $2.00 $2.00 $2.00 $0.50
Claims 90 23 132 15 16 26
Average Cost $2,443 $3,494 $1,919 $10,354 $2,674 $4,411
Net $614 $185,356 $43,169 $136,839 $225,237 $(12,616)
Available Program Balance $614 $185,970 $229,139 $365,978 $591,215 $578,599
91
Sewer Rate Changes
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Quarterly Customer Charge $24.93 $26.64 $28.47 $29.89 $31.38
Volume Rate per CCF $4.76 $5.09 $5.45 $5.72 $6.01
Monthly Increase* $2.70 $2.88 $3.13 $3.29 $3.45
Quarterly Increase* $8.11 $8.64 $9.39 $9.86 $10.35
7% annual increase in FY 2019 – FY 2022
*Average Residential Customer at 8 CCFs
92
Solid Waste Fund Cash Balance
$0$200,000$400,000$600,000$800,000
$1,000,000$1,200,000$1,400,000$1,600,000
93
Solid Waste Fees per Month
Rate Rate Rate$13.02 $16.59 $20.19
$13.41 $0.39 $17.09 $0.50 $20.80 $0.61
$13.81 $0.40 $17.60 $0.51 $21.42 $0.62
FY 2020FY 2021
FY 2022
3% annual increases
94
Solid Waste & Recycling
Staff will continue to monitor andassess potential external impacts tothe current recycling program.
Future recycling tipping fees may benecessary in a prolonged weakrecyclable commodity market.
Recycling remains an importantsustainability service in the Davenportcommunity.
95
Clean Water Fund Cash Balance
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
96
Clean Water Fund
FY 2021 Clean Water Projects Stormwater Best Management Practice cost
share for residential and commercial properties Blackhawk Creek stabilization Hydraulic/flood study in the Hickory Grove and
Marquette area An additional working unit has been created through
a staffing position transfer and funding from CIPallocations. With two working units the division willbe more effective supporting the operation,maintenance, and improvement of the stormwatersystem.
97
ERU Residential Clean Water Fee
Rate per Month IncreaseFY 2020 $2.80 -FY 2021 $2.88 $0.08FY 2021 $2.97 $0.09
3% annual increases
98
Parking Fund
55%
6%1%
38%
Parking Fund Revenues
Charges for Services
Fines & Forfeits
Use of Monies &Property
Miscellaneous (DebtService Fund Transfer)
16%
23%
12%
49%
Parking Fund Expenses
Salaries &BenefitsSupplies
Allocated Costs
Debt Service
99
Parking Fund
Increased demand as well as recent technologyimprovements in parking stations and enforcementare increasing revenues collected in the ParkingFund.
The parking ramp debt will be completely retired inFY 2021. The total payment amount is $978,400.
Following the retirement of this debt, staff ispreparing to shift $150,000 annually to theongoing maintenance and security of the ramps.
100
Transit FundFY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Revenue
Rider Fees $515,216 $533,865 $494,410 $899,113 $422,570 $413,710 $455,774
Property Taxes $3,580,415 $3,646,576 $3,602,973 $3,574,407 $3,576,836 $3,667,870 $3,851,795
Grants $1,163,780 $2,785,015 $2,172,106 $2,083,842 $2,047,183 $1,880,753 $2,262,548
Other $429 $(7,375) $(384,790) $(19,661) $18,038 $16,800 $18,025
Expenditures
Employee Expenses $2,612,727 $2,752,309 $3,038,146 $3,316,875 $3,400,345 $3,382,692 $3,827,483
Supplies & Services $3,167,655 $3,277,876 $3,205,018 $2,906,463 $2,918,360 $2,995,600 $3,198,268
Total
Surplus/(Deficit) $(520,542) $942,296 $(358,465) $314,363 $(254,078) $(399,159) $(437,609)
*Does not include depreciation
101
Transit Fund
$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
Transit Revenues and Expenditures
RevenueExpenditures
*Does not include depreciation
102
Transit Fund
Revenue Total Percent of Total Budget
Rider Fees $357,100 5.0%
Property Taxes $4,163,975 58.6%
Grants $2,217,858 31.2%
Transfer In $350,000 4.9%
Other $20,500 0.2%
Expenditure Total Percent of Total Budget
Employee Expense $4,161,197 57.5%
Supplies & Services $1,840,123 25.4%
Debt Service $32,620 0.4%
Allocated Costs $1,199,401 16.6%
Transit Fund FY 2021 Budget
103
FY 2021 Impact to a Median Household
Annual Change(In Dollars)
Property Taxes* -$41.01
Sewer Fee +$34.71
Solid Waste Fee** +$5.93
Clean Water Fee +$0.99
Net Impact +$3.18
**assumes medium garbage cart
*median home property value $132,779
Property taxes decreaseddue to a 3.24% reductionin the residential rollback
104
FY 2021 Budget Highlights
Complies with City Council policy for reserve and liquidity targets, while
maintaining the tax levy rate ($16.78/$1,000 taxable valuation)
2020/2021 Council Priority Inclusions
Development of the Public Safety Analytics Division
Addition of a Public Safety Business Administrator will allow sworn
personnel to focus on community-facing public safety initiatives
Increased personnel for neighborhood services
Cyber security
105
ScheduleJanuary 18th | Operating Funds
•FY 2019 Financial Review•FY 2020 Financial Update•Fund Accounting and Structure Essentials•FY 2021 Operating Budget Review
January 25th | Capital Funds•Debt Service Fund•Local Option Sales Tax Fund•Road Use Tax Fund•Six-year Capital Improvement Program
February 1st | City Administrator’s Budget & Work Plan•Previous Workshop Follow-Up•City Administrator’s Recommended FY 2021 Budget
THANK YOU