FY25 Proposed Budget

In Fiscal Year 2024 the City drew down General Fund reserves by approximately $4.5 million to support a land purchase in Downtown Iowa City. That acquisition is expected to be short-term as the City will look to lead on a public/private partnership that will build taxable value on the site. Similarly, Fiscal Years 2024 and 2025 include reserve drawdowns from the Facility Master Plan reserve to support planned projects including the Senior Center renovation, equipment building construction and reconstruction of City Park Pool. The planned reserve draw down will take the General Fund unassigned fund balance from the 42% level in Fiscal Year 2023 to 31% in Fiscal Year 2025. While this number falls within the City’s policy of maintaining a balance between 25 35%, a close eye will need to be kept on this number given the financial headwinds previously outlined. Enterprise / Business Fund Overview Enterprise or Business Funds refer to specific operations intended to be self-sustaining without the need for subsidy from property taxes or revenue sources other than fee collection directly related to the operation. The budgeted revenues, expenditures, and corresponding fund balances of the City’s enterprise funds are detailed in the following table. Each of the City's enterprise funds are in varying, yet stable conditions. A column has been added to indicate the approximate health of each fund (AAA = Good, AA = Adequate, A = Needs Monitoring).

Unassigned Balance as % of Rev & Trans In

Estimated Fund Balance 6/30/25

Restricted, Committed, Assigned

Unassigned Fund Balance, 6/30/2025

Budgeted Expenditures

Transfers Out

Estimated Revenues

Fund

Transfers In

Fund Health

Parking

8,863,815

1,500,000

5,124,974 3,244,800 3,918,882

498,702

3,420,180

33% A

Transit

7,928,300

4,997,200

11,955,550 2,955,500 4,439,524

2,761,556

1,677,968

13% A

Wastew ater

13,353,500

5,375,000

12,714,600 6,732,500 21,185,210

8,317,873

12,867,336

69% AA

Water

12,250,200

1,872,200

10,356,952 3,640,200 14,234,372

4,965,050

9,269,322

66% AAA

Refuse

5,149,300

7,000

4,731,500

250,000 2,186,413

-

2,186,413

42% AA

Landfill

7,964,900

1,514,800

6,079,450 1,525,000 22,800,762 20,061,054

2,739,708

29% AA

Airport

440,500

100,000

436,550

350,000

42,505

-

42,505

8% A

Stormw ater

1,916,800

1,101,200

681,900 2,135,000 1,716,909

662,961

1,053,948

35% AA

ICHA 12,892,728

0

12,469,766

30,700 7,098,425

1,378,686

5,719,739

44% AA

In response to some of current and anticipated pressures on many of the Enterprise Funds, this budget adopts several rate and fee increases. Although some funds present stable or adequate positions, proactive, incremental increases to some rates are included to avoid larger hikes when the fund is in a more critical condition.  $1/month Recycling rate increase  $2.50 per ton increase to the Landfill tipping fee  5% Wastewater rate increase (approximately +$1.84/mo. per home)  3% Water Rate increase (approximately +$1.09/mo. per home) Additionally, this budget adopts multiple parking related fee changes. This includes standardizing all parking decks at $2/hour while maintaining the existing first hour free program. Parking meter costs will increase between $.50 to $1.00 per hour depending on location. Lastly, several parking

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