FY2024 Proposed Budget

Finance Administration

Finance Administration provides direction and administrative support to departmental operating divisions. It supervises the preparation and dissemination of financial data for use by City Council and staff in making managerial decisions and coordinates the annual budget process. General Fund Activities:  Finance Administration monitors financial trends and provides analysis of budget to actual data and three-year financial projections. Staff provides oversight of long and short-term investment portfolios, cash flows and reserves, and oversees the preparation of general liability, fire & casualty, and workers compensation insurance specifications. Administration coordinates annual health and dental insurance renewals. Administration prepares the annual budget, three-year financial plan, and five year capital improvement program and subsequent amendments thereof.  Tort Liability - Chapter 384.12 of the Iowa State Code provides municipalities within the state of Iowa the legal authority with which to levy “a tax to pay the premium costs on tort liability insurance, property insurance, and any other insurance that may be necessary in the operation of the city, the costs of a self-insurance program, the costs of a local government risk pool and amounts payable under any self-insurance program, or local government risk pool.” The Tort Liability cost center accounts for General Fund’s contribution to the Risk Management Loss Reserve; general liability, fire, casualty and workers compensation premium costs.  Non-Operational Administration - The Non-Operational Administration cost center facilities financial transactions which are non-operational in nature. o Employee Benefits Levy: State code requires that a separate fund be established to account for revenue from the Employee Benefits Levy. Monies are then transferred into Non-Op Admin to cover General Fund’s share of Employee Benefit costs levied. o Utility Franchise Tax: A one percent (1%) utility franchise tax is levied by the City on gas and electric bills. These funds are used for a variety of purposes as determined by the City Council. o Community Event and Program Funding: The City’s Community Events and Programming budget has financially supported groups that have requested funding for various community events. o Contingency: The General Fund budgets a contingency of 1% of expenditures.  Disaster Assistance accounts for Federal Emergency Management Agency (FEMA) reimbursements for repairs to public facilities damaged in floods and natural disasters. Revenue includes State of Iowa matching funds. In addition to public facility repairs, reimbursements are also provided for some flood recovery services.  Emergency Fund was created in fiscal year 2014 to hold excess fund reserves for the following purposes: to provide natural or other disaster response or mitigation funding/interim loans, to mitigate fluctuations or sudden elimination of State of Iowa property tax backfill or other State operating assistance, to mitigate pension, insurance, or health care funding anomalies, emergencies, or spikes, to avoid any defaults from the payment of long term or bonded debts, for any other financial emergencies declared by the City Council. 87