1. 2014 Budget Expenditures City of Knoxville, Iowa Presentation by Harold Stewart, City Manager Valentine’s Day Thursday, February 14, 2013

2. City Council Guiding Principles  Balance Budget by Using Minimal Utility Franchise Fees  Only Commit LOSST Revenues for Downtown Streetscape and Equipment Replacement  Promote and Enhance Economic Development  Increased Emphasis on Community Enhancement & Nuisance Abatement

3. Debt Service Levy Discussion 2014 Budget Form 16.83504 2013 Budget Form 15.89874

4. ExpendituresFY14 Staff Proposed Operations $ 112,150 Improvements $ 835,440 Total Expenses $ 947,590 Revenues $ 136,350 Grants $ 696,690 Rev Subtotal $ 833,040 GF Support Required $ 114,550 Airport Budget Highlights  Increased cost for insurance  Increase for other capital equipment replacement  Requesting $75k from General Fund to match federal grant (approx. $900k)

5. ExpendituresFY14 Staff Proposed Personnel $ 162,057 Operations $ 33,510 Total Expenditures $ 195,567 Revenues Cemetery Svc /Lot Sales $ 54,700 Cemetery Roads Fund $ 1,500 Perpetual Care Fund $ 5,225 Rev Subtotal $ 61,425 GF Support Required $ 134,142 Cemetery Budget Highlights  Cemetery Laborer III now fully funded in Cemetery – General Fund  Completion of fence along north property line at Graceland Cemetery  Installation of new entrance signs  Will retrofit mowers in FY13 rather than replace. Estimated savings is $40k

6. FY13 BudgetFY14 Staff Proposed % Difference Personnel $ 52,755 $ 63,28019.95% Operations $ 22,850 $ 28,90026.48% Total $ 75,605 $ 92,18021.92% City Clerk Budget Highlights  City Clerk salary adjustment  Increase to contractual amount for annual audit  Purchase of iPad

7. FY13 BudgetFY14 Staff Proposed % Difference Personnel $ 49,243 $ 71,07244.33% Operations $ 70,925 $ 169,000138.28% Total $ 120,168 $ 240,07299.78% City Hall Budget Highlights  $50,000 for RAGBRAI ($50,000 in revenue also budgeted)  $30,000 for Council Chamber renovation  $11,500 for new PT position at front desk  $10,000 for eCivis grant database  Deputy City Clerk salary adjustment

8. FY13 BudgetFY14 Staff Proposed % Difference Personnel $ 154,157 $ 173,55012.58% Operations $ 16,450 $ 47,250187.23% Total $ 170,607 $ 220,80029.4% City Manager, Mayor & Council Budget Highlights  $20,000 for Citywide cleanup event  $17,500 for City Management Internship (does not include benefit costs)  $5,250 for Staff & Council iPads  Personnel reduced $15,000 budgeted to support ACM salary

9. ExpendituresFY14 Staff Proposed Personnel $ 430,969 Operations $ 116,550 FEMA Grant $ 160,000 Total Expenditures $ 707,519 Revenues Federal Grant $ 160,000 Rescue Services $ 433,000 Public Sources $ 2,000 Rev Subtotal $ 595,000 GF Support Required $ 112,519 Fire & Rescue Budget Highlights  Includes Fire Chief salary adjustment from hiring process  Includes additional personnel and operations costs for FEMA Fire Prevention Grant

10. FY13 BudgetFY14 Original Proposed FY14 Staff Proposed % Difference Personnel $ 201,990 $ 214,500 $ 207,8302.89% Operations $ 122,810 $ 136,690 $ 115,440-6.00% Total $ 324,800 $ 351,190$ 323,270-0.47% Library – General Fund Budget Highlights  Staff reviewed historical General Fund contributions to Library budget and is recommending a nominal decrease  This information only includes the General Fund portion of the Library. The Knoxville Library also uses a Memorial Fund for the Library Expansion Project. Revenues to the Memorial Fund remain separate from the General Fund. This includes donations for the project, and/or rental income for the Gebhardt house

11. ExpendituresFY14 Staff Proposed Personnel $ 207,830 Operations $ 115,440 Expenditure Total $ 323,270 Revenues Library Revenues $ 47,985 Levy $ 50,000 Rev Subtotal $ 97,975 GF Support Required $ 225,295 Library – General Fund Budget Highlights  In FY12, the City paid $25k for Library Expansion Design. $10k was budgeted in FY13 and has not been spent. No design money is included in FY14 budget

12. ExpendituresFY14 Staff Proposed Personnel $ 33,614 Operations $ 85,010 Expenditure Total $ 118,624 Revenues Shelter Rental (includes $65 to Auld Trust) $ 2,065 Rev Subtotal $ 2,065 GF Support Required $ 116,559 Parks Budget Highlights  Increase part-time salaries by 5% to improve service levels in parks and public grounds  Includes $12,000 for outdoor exercise equipment along Competine Trail  $28,000 to fund park redevelopment and maintenance ($37k in FY13) Note:  Athletic Field rental revenue goes to the Recreation Dept  The City will budget $300k in Rev/Exp for REAP grants

13. ExpendituresFY14 Staff Proposed Personnel $ 62,329 Operations $ 18,890 Expenditure Total $ 81,219 Revenues Permit Fees $ 16,750 Rev Subtotal $ 16,750 GF Support Required $ 64,489 Planning & Zoning Budget Highlights  Assistant City Manager salary adjustment  Split Assistant City Manager Position with P&Z, Road Use Tax Fund and Sewer Fund  $10,000 to begin streamlining GIS efforts  Includes purchase of iPad for Building Inspector  Additional $11,400 for Community Enhancement

14. ExpendituresFY14 Staff Proposed Personnel $ 1,142,730 Operations $ 201,900 Expenditure Total $ 1,344,630 Revenues Misc Revenues (includes Fines) $ 60,760 Federal, State & School Grants $ 82,000 Rev Subtotal $ 142,760 GF Support Required $ 1,201,870 Police Budget Highlights  Additional Police Officer through COPS grant which will be offset by increased revenues  No significant changes to operational costs

15. FY13 BudgetFY14 Staff Proposed % Difference Personnel $ 110,848 $ 63,500-42.71% Operations $ 20,545 $ 11,265-45.17% Total $ 131,393 $ 74,765-43.10% Public Works Administration Budget Highlights  Includes elimination of PW Director position. The Assistant City Manager will continue to perform duties.  Reduction in contractual services, meetings & conferences and other items  Assistant City Manager salary, benefits and operational costs will be split across General Fund - Zoning, Road Use Tax Fund and Sewer Fund

16. ExpendituresFY14 Staff Proposed Personnel $ 318,499 Operations $ 205,038 Total Expenditures $ 523,537 Revenues Recreation Services $ 244,180 All Other Revenues $ 29,533 Rev Subtotal $ 273,713 GF Support Required $ 249,824* Recreation Budget Highlights  Includes new restroom stalls in men’s and women’s locker rooms  Upright bike for cardio room  Includes two (2) new treadmills  Personnel cost increases for personal training and water classes *52.3% Self Supporting

17. FY13 BudgetFY14 Staff Proposed% Difference Personnel $ 362,953 $ 377,6314.04% Operations $ 1,298,060 $ 1,208,667-6.88% Total $ 1,661,013 $ 1,586,298-4.49%* Sewer Budget Highlights  Personnel increases reflect health plan enrollment change and anticipated salary increases (pending union negotiations)  Includes vehicle replacement of old camera truck and guide rails at sewer facility  Purchase of 2 iPads for sewer inspection  Includes increases for electricity/gas, sewer repair and contract costs  Sludge removal savings of $30k in 2013 and $30k in 2014 *Includes Sewer Personnel & Operations Only

18. FY13 BudgetFY14 Staff Proposed % Difference Operations $ 45,250 $ 38,428-15.08% Total $ 45,250 $ 38,428-15.08% Street Lighting Budget Highlights  Used a conservative forecast method to budget. Includes assumption of 11% utility increase

19. FY13 BudgetFY14 Staff Proposed % Difference Personnel $ 341,965 $ 339,032-0.86% Operations $ 478,890 $ 277,358-42.08% Total $ 820,855 $ 616,389-24.91% Streets Department Budget Highlights  Includes additional entrance sign for west side of Knoxville  Engineering Internship program will assist with Street Pavement Condition Index  Includes funds for downtown community enhancement  Replacement of paint striping machine Note:  There is $25k of unobligated RUTF money to be spent on streets projects

20. FY13 BudgetFY14 Staff Proposed % Difference Operations $ 32,650 $ 29,642-9.21% Total $ 32,650 $ 29,642-9.21% Traffic Control & Safety Budget Highlights  Includes annual operating costs of municipal street infrastructure (signs, lights, signals, etc.)  City must begin purchasing LED bulbs for street lighting, traffic signals and other infrastructure. Budget includes $8,500 for replacement in FY13 and $6,300 in FY14

21. General Fund Departments Total ExpendituresFY13 BudgetFY 2 nd Rd Proposal Airport $ 99,025 $ 112,150 Cemetery $ 217,535 $ 195,567 City Clerk $ 75,605 $ 92,180 City Hall $ 120,168 $ 240,072 CM, Mayor & Council $ 170,607 $ 220,800 Fire Rescue $ 663,868 $ 707,519 Library $ 324,800$ 323,270 Parks $ 419,948$ 418,624 Police $ 1,222,485 $ 1,344,630 Recreation $ 488,617$ 523,537 Street Lighting $ 45,250 $ 38,428 Planning & Zoning $ 120,156 $ 81,219

22. General FundFY13 Budget FY14 Original Proposed FY14 2 nd Rd Proposal% Difference Revenues $ 3,595,539 $ 3,920,521 9.04% Expenditures $ 3,490,218 $ 3,733,325$ 3,707,6036.97% Surplus/(Deficit) $ 105,321 $ 187,196$ 212,918102% Local Option Sales Tax FundFY13 Budget FY14 Original Proposed FY14 2 nd Rd Proposal% Difference Revenues $ 695,000 $ 716,500 3.09% Expenditures $ 1,307,900 $ 453,968 $ 456,068-65.13% Surplus/(Deficit) $ (612,900) $ 262,532 $ 260,432 Road Use Tax FundFY13 Budget FY14 Original Proposed FY14 2 nd Rd Proposal% Difference Revenues $ 672,796 $ 687,500 2.19% Expenditures $ 687,441 $ 662,799 $ 661,749-3.58% Surplus/(Deficit) $ (14,645) $ 24,701 $ 25,751 Revenue & Expenditure Comparisons – All Funds

23. Sewer – All FundsFY13 BudgetFY14 Proposed% Difference Revenues $ 5,739,512 $ 3,553,488-38.09% Expenditures $ 6,458,791 $ 3,553,488-44.98% Total $ (719,279) $ - Airport FundsFY13 BudgetFY14 Proposed% Difference Revenues $ 288,068 $ 947,590228.95% Expenditures $ 286,665 $ 947,590230.56% Total $ 1,403 $ - Revenue & Expenditure Comparisons – All Funds (cont.)

24. Use of Utility Franchise Fees & Local Option Sales Tax Utility Franchise Fee Revenue $ 387,168 Local Option Sales Tax (LOST)$ 260,432 City ProjectsAmount Yes/No? Council iPads $ 5,2502,250 Council Chamber Remodel $ 30,000No Park Trail Exercise Equipment $ 12,000No City Management Internship $ 17,500Yes Cemetery Entrance Signs $ 4,500Yes Airport Grant $ 75,000Yes GIS project $ 10,000Yes Citywide Cleanup $ 20,000 Yes Total $ 128,500

25. Projects City ProjectsAmount Yes/ No? City ProjectsAmount Yes/ No? Add to Fund Balance $100kYesLand Acquisition/Housing Dev.$350kYes Career Academy $25k+NoStreet Repairs$200kYes Reduce Property Tax Levy $50kYesSidewalk Project$140kYes Bike Trail Phase $490kNoLibrary Expansion Project$100k-$3.8mNo Fireworks $10k+NoRecreation Center Project$100k-$500kNo Bell Avenue Sewer Ext. $475kNoRoche St. Culvert Repair$600kNo Property Rehab Projects $60kYesHousing Rehab Grant $5,000+No Splash Pad$50k-$500kNoStreetscape Reserves (LOST)$19kYes Revenue SourceFY14 Amount Available Utility Franchise Fee$258,668 LOSST$260,432 GO Bond Revenue$555,000 Total Available for Projects$1,074,100