FY24 Adopted Budget

2024. The strategic goal to annually increase the Emergency Fund Balance by 5% is met through a $258K transfer in the Fiscal Year 2023 budget amendment, bringing the total Emergency Fund Balance to $5.4 million. Investment in Master Plans and Core Services As previously outlined, this budget provides funding to support continued implementation of various City Master Plans including the Climate Action Plan, Bike Master Plan, and Affordable Housing Action Plan. Over $27 million in the five-year capital improvement plan is budgeted for parks and recreation projects, many of which implement the Parks & Recreation Gather Here Master Plans. The Fiscal Year 2024 CIP budget includes funding for playground and/or shelter improvements at Hunter’s Run and Happy Hollow Parks, redevelopment of the Terrell Mill Skate Park, Mercer Park Ball Diamond improvements, and Hickory Hill Park Conklin Street entrance improvements. Funding is also earmarked to respond to recommendations from the Recreation Master Plan addressing major community interests, such as City aquatics facilities. Finally, the bulk of this budget is dedicated towards ensuring core service levels are maintained, including responsible funding levels for roadway repairs and equipment replacement. In addition to annual pavement rehabilitation program funding, several important road rehabilitation and reconstruction projects are planned for 2023, including continuation of the Rochester Avenue (First Ave. to Ralston Creek) reconstruction project, Benton Street rehabilitation, and the Gilbert Street Bridge replacement. Various water, sewer, and landfill projects are also planned in accordance with replacement and maintenance schedules. Inflation, supply chain issues, and labor shortages have had significant impacts on operational and project budgets and completion timelines. The Fiscal Year 2023 amended and Fiscal Year 2024 adopted budgets reflect significant increases in essential supplies and services line items. Combined, gas and diesel expenses increased by 54% in Fiscal Year 2024 over Fiscal Year 2022 levels (+$922K). Heating Fuel expenses increased 87% from Fiscal Year 2022 to Fiscal Year 2024 (+$244K) and several water treatment chemical line items doubled in price for Fiscal Year 2024 over the previous year. Additionally, rising insurance premiums are expected to continue in Fiscal Year 2024, which include 10 to 20% premium increases across the board in Risk Management. As these essential costs eat up more of the available resources, value-added programs and services feel the squeeze in the form of stagnated or reduced budget allocations.

Budget Impacts and Financial Goals This budget was developed within the context of several significant financial impacts:

• The final year of the phased 2013 State of Iowa property tax reform, including an estimated $146 million loss in multi-residential taxable value in Fiscal Year 2023 and an anticipated loss of well over $200 million in Fiscal Year 2024. • Beginning in 2023, commercial and industrial property tax backfill payments (which have historically totaled $1.5 million annually) are being phased out over a five-year period. In Fiscal Year 2024 the remaining original commerical backfill payment is estimated to be $926,000, or roughly two-thirds of the original commitment the State of Iowa made in 2013. • Another decrease in the State residential rollback rate (anticipated to continue).

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