FY2022

During October, the Finance Department produces the preliminary Capital Improvement Program. This is reviewed through a series of meetings by a Capital Project Review Committee and modifications are made based on project timing and coordination, community development, funding availability, and other factors. In late October, budget entry is restricted and only accessible to the Finance Department, and the Finance Department issues the proposed Five-Year Capital Improvement Program. In November, the Finance Department reviews the budget projections with requests added and compiles them all into a budget. Long range financial plans are reviewed and integrated into the annual budget and rate or budget adjustments are determined. All budget forms and adjustments are forwarded to the City Manager. By mid-December, the City Manager and Finance Department decide which modifications to operations will be made. A tax levy is computed. Analysis is done so all funds have required balances or zero balances. The proposed Five-Year Capital Improvement Program, division performance measures and goals, and the annual and projected budget are combined into one document. The proposed Financial Plan document is then printed. In February, the proposed Financial Plan document and a memo of City Council’s changes are presented to the public. A notice of public hearing is published at least ten days but not more than 20 days prior to the final adoption. In March, the final Three-Year Financial Plan and Five-Year Capital Improvement Program are adopted by the City Council following a public hearing. The State of Iowa requires a one-year budget be adopted by March 31 of each year. The applicable year in Iowa City’s Three-Year Financial Plan is adopted as the annual budget to satisfy State requirements. If increases to service rates or charges are included as part of the next year’s budget, those rate changes are then adopted in March following adoption of the budget. Amending the Adopted Budget Budget amendments are typically presented to the City Council twice a year, with a public hearing held each time to allow for citizen input. The first public hearing is usually held in early fall, and the second and/or final hearing is in late spring. All amendments must be formally approved and certified to the State of Iowa by May 31st, as required by law. The fall budget amendment is primarily comprised of appropriations from the prior year that must be ‘carried-forward’ or re-appropriated as part of the new fiscal year. These carry forwards are in two forms 1) unspent department appropriations, and 2) incomplete capital improvement projects. Departments may request to carry appropriations forward into the next fiscal year that remain unspent at the end of the fiscal year. These requests are submitted to the Finance Director for review and then approved or denied by the City Manager. In order for an City Council reviews the proposed Financial Plan document during the month of January.

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