Review of Budget Public Hearing – March 2, 2015

Budget Calendar October 20th- Capital Improvement Plan Council Work Session & Budget Parameters to City Council November 3rd - Capital Improvement Plan Council Work Session November 14 th – Department Head Budgets to Finance Director November 17th – C.I.P. finalized and orders Notice of Public Hearing November 21st - Decision packages to Finance Director December 1st - Preliminary Operating Budget to Council and Capital Improvement Plan Public Hearing December 9th & 15th–Department Budget Work Session w/City Council January 5 th - Outside organizations budget requests (cancelled snow storm) January 5th, 20th, 29 th, and February 3rd - City Council Budget Work Sessions February 2nd - City Council finalized and Orders Notice of Budget Hearing March 2nd – Public Hearing Budget

FY 16 Issues with Budget Impact SF 295 –Assessment Limitation Order- Rollback and Major Changes to Iowa’s Property Tax System Operational costs for the new public safety building – opened August 2014 Capital Equipment Plan – 4th year funding Capital Improvement Plan Affordable Care Act

Initial Budget Results Departments submit budgets to Finance Director City Administrator submitted budget with a increase in the property tax levy which resulted in the following: –General Fund Operating Levy increased from –$7.57 to $7.59 –Debt Service Levy increased from $3.77 to $3.80 –Additional Levy - Employee Benefit Levy of $0.76 –No funding for Decision Packages –Included funding for Equipment Replacement Program –No increases in funding of outside organizations

ROLLBACK FY Rollback - –Residential % Example: –Actual Valuation - $200,000 –Taxable Valuation - $111,467 –Commercial – 90% –Agricultural – % –Industrial – 90%

Assessment Limitation Order Residential & Ag Property Value growth capped at 3% Commercial, Industrial & Railroad Property valuation rollback 90% for 2014 Assessments (FY16) – valuation will remain 90% regardless of how fast or slow valuations grow Created a Standing Appropriation Created Multi-residential Property Class

Standing Appropriation “backfill” Backfill 100% funded current year FY15 Anticipate 100% funded FY16 –Estimated $473,580; General Fund - $317,100 Debt Service Fund - $156,480 –Approximate tax levy of $0.37/$1,000 valuation if not funded Backfill appropriations capped at the FY17 level

Multi-family Residential Properties Valuation YearRollback Percentage January 1, 2015 (FY17)86.25% January 1, 2016 (FY18)82.5% January 1, 2017 (FY19)78.75% January 1, 2018 (FY20)75% January 1, 2019 (FY21)71.25% January 1, 2020 (FY22)67.5% January 1, 2021 (FY23)63.75% January 1, 2022 (FY24) and thereafterSame as residential

Tax Valuations Tax Valuations Our Actual Commercial/Residential Valuations for increased $87,463,633 or 4.47% Our Taxable Commercial /Residential Valuations for increased $48,110,616 or 3.88%

100% TIF VALUATION COM/IND VALUATION TOTAL VALUATION 2009 VALUATION$65,784,660$305,376,960$371,161, VALUATION$92,486,540$305,793,360$398,279, VALUATION$105,189,210$267,066,510$372,255, VALUATION$105,597,014$291,038,037$396,635, VALUATION$120,609,484$287,077,951$407,687, VALUATION$136,040,530$351,669,952$487,710,482

BUDGET BEGINNING CASH JULY 1, 2015 BUDGETED RESOURCES BUDGETED REQUIREMENTS ENDING CASH JUNE 30, 2016 General Fund 3,677, ,114, (11,825,000.00) 2,966, % Hotel-Motel Tax 39, , (265,000.00) 19, Council Reserve Employee Work Clothing 3, , (2,000.00) 3, Assessment Reserve 117, Project Development 66, Equip Replacement Reserve 452, , (581,950.00) 421, TOTAL GENERAL FUND 4,358, ,912, (12,673,950.00) 3,596, % General Fund

Decision Packages Decision Packages were presented totaling $1,617,221

Decision Packages The following item was approved and will be funded by property tax dollars included in the $11.50 tax levy: Police Sergeant $ 103,396

Decision Packages Items proposed to be funded with general fund reserve: –Emerald Ash Borer Prevention $75,000 –City Hall Monument Sign $18,650 –Performance Management Pay $22,517 –Deputy Finance/City Clerk $44,850

Decision Packages The following items were approved to be funded with other sources or included in department operating budgets: –Police Department Tasers $ 7,500 –Police Department Shotguns 4,250 –Police Department Body Worn Cameras 7,500 – Signature Hardware 1,996 –Community Survey 15,000 –Production of 4 videos 6,000 –Toolcat Utility Machine (CEP) $45,000 - City Hall Cleaning – Contract $21,000

Capital Equipment Plan The following items were approved to be funded from the capital equipment replacement funds: Replace 4 Police Vehicles.$ 101,350 One car and 3 special use vehicles Police-In car cameras $ 15,600 Police Speed Trailer$ 16,500 Fire/Rescue – Mobile Data Computers$ 10,500 Public Works – Replace 2004 Pickup$ 25,000 Public Works–Replace 2006 International Truck$ 190,000 Parks – Replace Landpride Mower$ 15,000 Parks – Replace 2004 Ford Truck$ 50,000 Parks– Replace 1997 Chevy Pickup$ 38,000 Parks-Replace John Deere Tractor #222$ 65,000 Parks –New Toolcat Utility Machine $ 45,000

Capital Equipment Plan, Cont Administration – Replace SQL Server $ 10,000 Water/Sewer – Replace 2006 Ford E-150$ 25,000 Water/Sewer – Replace 2005 Ford E-150$ 25,000 Total CEP Funding $631,950 General Fund $366,950 Road Use Tax $215,000 Water/Sewer $ 50,000

Des Moines Area Regional Transit Authority DART organized 2006 –Separate taxing authority Johnston levy: –FY13 $0.40/$1,000 –FY14 $0.48/$1,000 –FY15 $0.55/$1,000 –FY16 Proposed $0.61/$1,000 Per state law – cap for transit is $.95/$1,000

RECYCLING Curb-It Recycling –Currently $2.65/month ANTICIPATED 3% Utility Bill User Fee increase

Waste Management Third Year of Contract Garbage Rates –Currently $7.79/month for 48 gallon container; $8.01/month for 96 gallon container Annual rate adjustment by contract ANTICIPATED 3% Utility Bill User Fee increase

Funding Outside Organization Senior Citizens $5,300 Community Education $80,222 JEDCO $20,000* –*Potential of matching additional $10,000 Johnston Chamber of Commerce $6,000 Choose Des Moines Communities $5,000 Johnston Partnership for Healthy Community $5,000

Proposed Tax Levy General Fund Levy increases $0.13 from $7.57 to = $7.70 Debt Service Levy increases $0.03 from $3.77 to = $3.80 Total Tax Levy = $11.50

Property tax dollars as a part of the multi- million dollar business of running our City. Property tax dollars as a part of the multi- million dollar business of running our City. FY Budgeted Revenue - –$42,632,636 Property Tax Revenue – $ 13,310,678 $ 13,310,678 –31% of our entire revenue stream

FYCity of Johnston % of Total Tax LevyTotal Tax Levy $ % $ $ % $ $ % $ $ %$ $ %$ $ %$ $ %$ $ %$ $ % $ $ $

Tax Rates * Tax Rate for Johnston City General Levy Outside $8.10 Emerg Levy Employ Benefit Sub-Total Gen/Sp LevyDebt ServiceTotal Levy Urbandale $ $ $ $ $ Altoona$ $ $ $ $ Clive $ $ $ $ $ Johnston * $ $ - $ $ $ Ankeny $ $ $ $ $ $ West Des Moines $ $ $ $ $ $ $ Grimes $ $ $ $ $ $ $ Waukee $ $ $ $ $ Windsor Heights $ $ $ $ $ $ $ Des Moines $ $ $ - $ $ $ $

IMPACT IMPACT Property Tax impact on a $200,000 home will increase $47.65/year Property Tax impact on a $200,000 business will decrease $85.34/year

Property Tax Levy Amounts & Effect on Typical $200,000 Home YearRollbackActual Valuation Taxable Valuation City Tax Rate City Tax Amount Net Change % %$200,000$ 95, $1,030.54($17.07)-1.63% %$200,000$ 91, $1, $ % %$200,000$ 91, $1, ( $9.29)-0.89% %$200,000$ 88, $ ($34.44)-3.34% %$200,000$ 91, $1, $ % %$200,000$ 93, $1, $ % %$200,000$ 97, $1, $ % %$200,000$101, $1, $ % %$200,000$105, $1, $ % %$200,000$108, $1, $ % %$200,000$111, $1, $ % %$200,000$111, $1, $ %

History of Property Tax Rate Budget YearGeneral Fund Tax Levy Debt Service Tax Levy Actual Tax Levy 2007/08$7.73$3.57$ /09$7.58$3.72$ /10$7.38$3.92$ /11$7.60$3.67$ /12$7.63$3.46$ /13$7.70$3.59*$ /14$7.57$3.58$ /15$7.57$3.77**$ /16 Proposed $7.70$3.80$11.50

Summary Revenues - $42,632,636 Expenditures - $45,146,539 Fund Balance - $22,520,763

Fund Balances Beginning Fund Balance RevenuesExpendituresEnding Fund Balance General Fund$ 4,358,164$11,912,164$12,673,950$ 3,596,378 Special Revenue$ 802,975$ 1,723,300$ 1,836,488$ 689,787 TIF Special Revenue$ 3,704,777$ 4,216,004$ 4,935,542$ 2,985,239 Debt Service$ 391,685$ 7,907,922$ 7,942,232$ 357,375 Capital Projects$ 9,129,006$ 7,809,847$ 7,874,847$ 9,064,006 Proprietary$ 6,648,059$ 9,063,399$ 9,883,480$ 5,827,978 GRAND TOTAL$25,035,666$42,632,636$45,146,539$22,520,763

QUESTIONS?