FY27 Proposed Budget

9) Property tax abatements, building permit fee abatements, and abatement of other fees for property damaged by disaster. 10)Economic development activities and projects. 11)Any other lawful purpose. $2,002,600 estimate for fiscal year 2027, approximately $639,8000 will remain in the City’s general fund for maintenance of street right-of-way and for operational costs associated with Fire Station #4. The remaining $1,362,800 is for capital improvement projects (CIP) in the right of way and fare free transit. 3. Licenses & Permits - This category consists of revenue received for building and rental housing permits/inspections, franchise fees, plumbing license and taxi license fees; beer, liquor and cigarette permit/license fees (state regulated), sign permits, burial permits, animal licensing and some miscellaneous fees. Fiscal year 2027 budget for Licenses and Permits is estimated at $2.55 million. The fiscal year 2027 revenue is a decrease of 3.5% from fiscal year 2026 revised budget of $2.64 million, and the average over the last five years is a decrease of 1.2%. 4. Use of Money & Property - This revenue source consists of interest income and rents and is budgeted at $1,042,100 for fiscal year 2027. The fiscal year 2027 budget is an increase of 1.3% of the fiscal year 2026 revised budget of $1,029,000; additionally, there is an average increase of 39.2% over the last five years. The slight increase from the fiscal year 2026 estimate is from a conservative estimate for interest income; the average increase over the last five years is a result of the increased interest rates. 5. Intergovernmental - This revenue category includes state and federal grants, 28E agreements, and contracts with local governmental entities. Intergovernmental revenue is budgeted at $4.2 million in fiscal year 2027. The fiscal year 2027 budget is a decrease of 1.5% of the fiscal year 2026 revised budget of $4.3 million, and there is an average increase of 1.3% over the last five years. The decrease in fiscal year 2026 and the slight increase in the last five years average is due to the phase out of the backfill provided from the State from the 2013 property tax legislation. The majority of intergovernmental revenue is the result of 28E agreements with local entities for services provided to area residents, as shown in the following schedule. The largest of these agreements is for fire protection services to the University of Iowa, estimated at $2.7 million in fiscal year 2027, with $2.2 million receipted into the General Fund. The remainder is deposited into the Employee Benefits Fund as reimbursement for a percentage of Fire employee benefits and into the Capital Projects Fund as reimbursements for a percentage of Fire capital asset replacement.

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