1. 2015-2016 Review of Budget Public Hearing – March 2, 2015

2. 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 2015-2016 Budget

3. 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

4. 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

5. ROLLBACK FY 15-16 Rollback - –Residential - 55.7335% Example: –Actual Valuation - $200,000 –Taxable Valuation - $111,467 –Commercial – 90% –Agricultural – 44.7021% –Industrial – 90%

6. 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 fixed @ 90% regardless of how fast or slow valuations grow Created a Standing Appropriation Created Multi-residential Property Class

7. 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

8. 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

9. Tax Valuations Tax Valuations Our Actual Commercial/Residential Valuations for 2015-2016 increased $87,463,633 or 4.47% Our Taxable Commercial /Residential Valuations for 2015-2016 increased $48,110,616 or 3.88%

13. 100% TIF VALUATION COM/IND VALUATION TOTAL VALUATION 2009 VALUATION$65,784,660$305,376,960$371,161,620 2010 VALUATION$92,486,540$305,793,360$398,279,900 2011 VALUATION$105,189,210$267,066,510$372,255,720 2012 VALUATION$105,597,014$291,038,037$396,635,051 2013 VALUATION$120,609,484$287,077,951$407,687,435 2014 VALUATION$136,040,530$351,669,952$487,710,482

15. 2015-2016 BUDGET BEGINNING CASH JULY 1, 2015 BUDGETED RESOURCES BUDGETED REQUIREMENTS ENDING CASH JUNE 30, 2016 General Fund 3,677,533.17 11,114,320.00 (11,825,000.00) 2,966,853.1725% Hotel-Motel Tax 39,593.51 245,000.00 (265,000.00) 19,593.51 Council Reserve 275.55 - - Employee Work Clothing 3,592.23 2,000.00 (2,000.00) 3,592.23 Assessment Reserve 117,812.57 - - Project Development 66,508.64 - - Equip Replacement Reserve 452,847.75 550,844.00 (581,950.00) 421,741.75 TOTAL GENERAL FUND 4,358,163.42 11,912,164.00 (12,673,950.00) 3,596,377.42 28% General Fund

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

17. 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

18. 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

19. 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 –Email 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

20. 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

21. 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 2015-2016 CEP Funding $631,950 General Fund $366,950 Road Use Tax $215,000 Water/Sewer $ 50,000

22. 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

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

24. 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

25. 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

26. 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

27. 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 15-16 Budgeted Revenue - –$42,632,636 Property Tax Revenue – $ 13,310,678 $ 13,310,678 –31% of our entire revenue stream

28. FYCity of Johnston % of Total Tax LevyTotal Tax Levy 06-07 $ 11.3056729% $ 39.58636 07-08 $ 11.3029829% $ 39.48414 08-09$ 11.3010229% $ 39.40526 09-10$ 11.3010229%$ 39.40886 10-11$ 11.2670029%$ 39.46357 11-12$ 11.0957928%$ 39.30025 12-13$ 11.2900028%$ 39.69863 13-14$ 11.1500728%$ 39.93616 14-15 $ 11.3439227% $ 41.51432 15-16$ 11.50054$

30. 2014-2015 Tax Rates * 2015-2016 Tax Rate for Johnston City General Levy Outside $8.10 Emerg Levy Employ Benefit Sub-Total Gen/Sp LevyDebt ServiceTotal Levy Urbandale $ 7.17000 $ 0.40000 $ 7.57000 $ 2.15000 $ 9.72000 Altoona$ 8.10000 $ 1.45227 $ 9.55227 $ 0.39142 $ 9.94369 Clive $ 7.16982 $ 1.33756 $ 8.50738 $ 1.48072 $ 9.98810 Johnston * $ 7.70054 $ - $ 7.70054 $ 3.80000 $ 11.50054 Ankeny $ 6.89000 $ 0.15000 $ 0.56000 $ 7.60000 $ 4.30000 $ 11.90000 West Des Moines $ 8.10000 $ 0.07523 $ 0.26999 $ 1.60478 $ 10.05000 $ 2.00000 $ 12.05000 Grimes $ 8.10000 $ 0.14811 $ 0.27000 $ 1.45360 $ 9.97171 $ 2.94203 $ 12.91374 Waukee $ 8.10000$ 2.08000$ 10.18000$ 3.32000$ 13.50000 Windsor Heights $ 8.10000$ 1.02485 $ 0.27000 $ 4.73124 $ 14.12609 $ 1.22277 $ 15.34886 Des Moines $ 8.10000 $ 0.29000 $ - $ 4.64000 $ 13.03000 $ 3.89000 $ 16.92000

31. 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

32. Property Tax Levy Amounts & Effect on Typical $200,000 Home YearRollbackActual Valuation Taxable Valuation City Tax Rate City Tax Amount Net Change % 05-0647.9642%$200,000$ 95,92810.74278$1,030.54($17.07)-1.63% 06-0745.9960%$200,000$ 91,99211.30567$1,040.03 $9.49 0.92% 07-0845.5960%$200,000$ 91,19211.30298$1,030.74 ( $9.29)-0.89% 08-0944.0803%$200,000$ 88,16111.30102$ 996.30($34.44)-3.34% 09-1045.5893%$200,000$ 91,17911.30102$1,030.41 $34.11 3.42% 10-1146.9094%$200,000$ 93,81911.26700$1,057.06 $26.65 2.59% 11-1248.5290%$200,000$ 97,05811.09579$1,076.94 $19.88 1.88% 12-1350.7518%$200,000$101,50411.29000$1,145.98 $69.04 6.41% 13-1452.8166%$200,000$105,63311.15007$1,177.82 $31.84 2.78% 14-1554.4002%$200,000$108,80011.34392$1,234.22 $56.41 4.79% 15-1655.7335%$200,000$111,46711.34392$1,264.47 $30.25 2.45% 15-1655.7335%$200,000$111,46711.50000$1,281.87 $47.65 3.86%

36. History of Property Tax Rate Budget YearGeneral Fund Tax Levy Debt Service Tax Levy Actual Tax Levy 2007/08$7.73$3.57$11.30 2008/09$7.58$3.72$11.30 2009/10$7.38$3.92$11.30 2010/11$7.60$3.67$11.27 2011/12$7.63$3.46$11.09 2012/13$7.70$3.59*$11.29 2013/14$7.57$3.58$11.15 2014/15$7.57$3.77**$11.34 2015/16 Proposed $7.70$3.80$11.50

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

40. Fund Balances 2015-2016Beginning 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

41. QUESTIONS?