1. 2015 Budget Expenditures City of Knoxville, Iowa Presentation by Harold Stewart, City Manager Wednesday, February 5, 2014

2. City Staff Guiding Principles  Balance Budget by Using Minimal Utility Franchise Fees  Only Commit LOST Revenues for Downtown Streetscape, Equipment Replacement and projects (doesn’t support operational costs)  Meet Council Priorities  Add $100,000 to reserves  No increase to Mill Levy  No increase to Sewer Rates  Wage increases: 3% non-Union, 2.5% Union, 1.25% CM

3. FY 14/15 Council Priorities Priority 1 - Housing/Economic Development ◦ Re-creation of Knoxville Economic Development Corporation (KEDC), $100,000 ◦ Park Lane/Eric Drive/Bell Avenue Extensions Project, $75,000 Engineering costs ◦ Section 42 Housing Match, $300,000 of $420,000 (other $120,000 thru TIF) Priority 2 – Strengthen Public Safety and address needs ◦ SCBA replacement and upgrade for Fire Department, $180,400 ◦ Budgeted final shift as paid for 24/7 EMS Coverage (Saturday Day Shift), $17,000 ◦ Replacement of Fire Chief Command Vehicle, Tahoe, $37,852 ◦ Pay off 3 rd Ambulance Lease, $42,145 ◦ Replacement of Police Department Vehicle, Tahoe, $35,000 ◦ Public Safety Joint Use Building Needs and Feasibility Study, $30,000 Priority 3 – Downtown Vitality ◦ Streetscape Bond Payment $353,980 ◦ Advertising Campaign, $20,000 ◦ Paid Seasonal Staff for M-F morning watering of plants Priority 4 – Community Survey, $15,000

4. Debt Service Levy Discussion 2015 Budget Form 15.89683 2014 Budget Form 15.89976

5. ExpendituresFY 14FY 15 Proposed% Difference Operations $ 112,150$ 106,615-4.9% Improvements $ 835,440$ 740,800-11.3% Total Expenses $ 947,590$ 847,415-10.6% Revenues $ 136,350$ 72,600-46.8% Grants $ 696,690$ 666,714-22% Rev Subtotal $ 833,040$ 739,314-11.3% GF Support Required $ 114,550$108,101-5.6% Airport Budget Highlights  In FY14, the City approved a $75k grant match for airport approach improvements. Due to federal grant processes, the airport will only utilize $6,700 in FY 14 and is requesting $67,800 from the General Fund to match the federal grant (approx. $900k) in FY 15.

6. ExpendituresFY 14FY 15 Proposed % Difference Personnel $ 122,185$ 125,1382.4% Operations $ 31,510$ 33,9607.8% Total Expenditures $ 153,695$ 159,0983.5% Revenues Cemetery Svc /Lot Sales $ 54,700$ 61,30012.1% Cemetery Roads Fund $ 1,500$ 1,4006.7% Perpetual Care Fund $ 5,225$ 4,8008.1% Rev Subtotal $ 61,425$ 67,5009.9% GF Support Required $ 98,995$ 97,7981.2% Cemetery Budget Highlights  $3,000 to begin replacing trees at the Cemetery  $500 annually to stock the pond with different fish species

7. FY 14FY 15 Proposed % Difference Personnel $ 48,200 $ 49,6463% Operations $ 28,150 $ 25,150-10.6% Total $ 76,350$ 74,796-2.03% City Clerk Budget Highlights  No significant change  City’s annual audit cost has decreased with the new firm by $3,000, resulting in annual savings to the City.

8. FY 14FY 15 Proposed% Difference Personnel $ 55,372 $ 57,1483.2% Operations $ 129,935 $ 70,850-45.47% Total $ 185,307$ 127,998-30.92% City Hall Budget Highlights  In FY 14, annual costs like RAGBRAI® and eCivis were included in the City Hall budget. These costs have been removed, resulting in a significant decrease.

9. FY 14FY 15 Proposed% Difference Personnel $ 126,800 $ 74,485-41.25% Operations $ 37,350 $ 53,85044.17% Total $ 164,150 $ 128,335-21.81% City Manager, Mayor & Council Budget Highlights  $30,000 of City Manager’s salary will be budgeted in newly created “Economic Development” business unit  2 new iPads for Council  $20,000 for Spring Cleanup activity in Spring 2015  $15,000 for Community Survey

10. FY 14FY 15 Proposed% Difference Personnel $30,000 Operations $ 452,610 $ 722,96566.36% Economic Development Budget Highlights  New business unit created to track and account for Economic Development-related activities  $30,000 of City Manager’s salary to be paid out of this business unit  $5,000 Greater Des Moines Partnership plus $2,000 to attend trade shows  Knoxville Chamber of Commerce to receive 50% Hotel/Motel tax collections  $118,000 Red Rock Industrial Park and Rail Port Study (City portion: $15,600)  $100,000 to re-created Knoxville Economic Development Commission (KEDC)  $25,000 for Citywide Wayfinding Signage  $200,000 for Section 42 Housing Project support (upon award)

11. ExpendituresFY 14FY 15 Proposed Difference Personnel $ 316,250$ 351,18511.04% Operations $ 116,550$ 165,35041.87% Total Expenditures $ 432,800$ 516,53519.34% Revenues Rescue Services $ 488,000$ 441,000*-9.6% Public Sources $ 2,000 0% Rev Subtotal $ 490,000$ 443,000-9.6% GF Support Required $ -$ 73,535** Fire & Rescue Budget Highlights  $17,000 for additional shift (Saturday)  $15,000 feasibility study for joint public safety/city hall complex  $42,145 to complete purchase of ambulance ($15k LOSST and $27,145 from Debt Service Levy)  $180,398 for new SCBA units and air compressor (funded by LOSST)  Replace Command Vehicle, $37,852 *Adjusted to actuals **85.8% Sustaining

12. ExpendituresFY 14FY 15 ProposedDifference Personnel $ 162,451$ 168,8253.92% Operations $ 115,440$ 116,7201.1% Expenditure Total $ 277,891$ 285,5452.75% Revenues Library Revenues $ 47,975$ 44,975-6.25% Levy $ 49,075 - Rev Subtotal $ 97,050$ 94,050-3.09% GF Support Required $ 180,841$ 191,495*5.89% Library – General Fund Budget Highlights  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 *32.9% Sustaining

13. ExpendituresFY 14FY 15 Proposed Difference Personnel $ 28,850$ 30,2935% Operations $ 69,010$ 73,1666.02% Expenditure Total $ 97,860$ 103,4595.72% Revenues $ 2,065$ 8,465300.1% GF Support Required $ 95,795$ 94,994-0.83% Parks Budget Highlights  $5,000 for annual tree planting program  $26,400 to fund park redevelopment and maintenance ($28k in FY13)  5% increase in part-time salaries to address planting/watering  Will retrofit utility vehicle for parks maintenance and operations

14. ExpendituresFY 14FY15 ProposedDifference Personnel $ 52,294$ 54,3864% Operations $ 17,490 - Expenditure Total $ 69,784$ 71,8762.99% Revenues Permit Fees $ 16,750$ 48,985192.4% GF Support Required $ 64,489$ 22,891-64.5% Planning & Zoning Budget Highlights  $8,000 to continue streamlining GIS efforts  Personnel increases reflect new part-time community service officer position approved by Council in Fall 2013

15. ExpendituresFY 14 FY 15 Proposed Difference Personnel $ 813,930$ 795,800-2.22% Operations $ 152,300$ 162,4506.66% Expenditure Total $ 966,230$ 958,250-0.82% Revenues Misc Revenues (includes Fines) $ 60,760$ 52,200-14.08% Federal, State & School Grants $ 82,000$ 74,000-9.75% Rev Subtotal $ 130,700$ 126,200-3.44% GF Support Required $ 835,530$ 832,0500.41% Police Budget Highlights  $15,000 feasibility study for joint public safety/city hall complex  No significant changes to operational costs

16. FY 14FY 15 Proposed% Difference Personnel $ 63,501 $ 62,660-1.32% Operations $ 11,265 $ 15,44537.1% Total $ 74,766 $ 78,1054.46% Public Works Administration Budget Highlights  PW Admin combines General, Road Use Tax and Sewer Funds into a single business unit  $4,180 increase for engineering costs associated with new development (will also be offset by increased revenues)  FY12 Budget was $104,154 for this business unit

17. ExpendituresFY 14FY 15 ProposedDifference Personnel $ 255,605$ 242,636-5.07% Operations $ 188,738$ 208,75314.31% Total Expenditures $ 444,343$ 451,3893.16% Revenues Recreation Services $ 273,713$ 274,6410.33% GF Support Required $ 170,630*$ 176,7483.58% Recreation Budget Highlights  $28,000 to replace fitness equipment  $5,000 pool repainting project *60.8% Self-Sustaining

18. FY 14FY 15 Proposed% Difference Personnel $ 368,631 $ 364,136-1.21% Operations $ 435,952 $ 456,7304.76% Total $ 804,583$ 820,8662.02% Sewer Budget Highlights  Market adjustment for Wastewater Superintendent  $15,000 to restock sewer main pipe, increase of $10,000 over FY14  $17,000 to replace pumps and electrical work. This addition reflects costs seen over the last 18 months.  $5,000 towards Community Survey *Includes Sewer Personnel & Operations Only Debt ServiceFY 14FY 15 Proposed% Difference SRF Loan $146,090$91,338-37.5% 2008 Sewer Revenue $426,798$427,798-.2% 2010 Sewer Revenue $273,788$273,275-.2%

19. FY 15 Proposed Capital Improvements $ 438,000 Plant & Equipment Replacement $ 560,800 I&I Improvements $ 1,325,200 Total $ 2,324,000 Sewer – Capital Projects Budget Highlights  $25,000 for Park Lane Extension – Engineering  $100,000 for Section 42 Housing Project Support  $53,000 for annual spot repair  $80,000 for Westridge Acres Sewer Extension  $345,000 for Digester Roof Replacement, plus $19,800 for engineering  $170,000 for Clarifier Repainting Project  $995,000 for I&I lining project (grant funded) plus $330,000 in city funds Note: Expenditures exceed revenues because project revenues were received in previous fiscal years

20. FY 14FY 15 Proposed% Difference Operations $ 38,428 - Street Lighting Budget Highlights  No Change

21. FY 14FY 15 Proposed % Difference Personnel $ 321,487 $ 327,8941.99% Operations $ 270,358 $ 294,6368.97% Total $ 591,845 $ 622,5305.18% Streets Department Budget Highlights  $26,450 for Completion of Pavement Management Study  Completion of GIS Mapping for Stormwater Infrastructure ($8k in P&ZC, $20k in Streets)  $4,100 for Tree Removal

22. FY 14FY 15 Proposed% Difference Operations $ 29,642 $ 34,651 16.89% Traffic Control & Safety Budget Highlights  City must begin purchasing LED bulbs for traffic signals and other infrastructure.

23. General Fund Departments Total Expenditures FY 14 Budget FY 15 Proposed Difference Airport $ 112,150$ 106,615 -4.9% Cemetery $ 153,695 $ 159,0983.5% City Clerk $ 76,350 $ 74,796-2.0% City Hall $ 185,307 $ 127,998-30.9% CM, Mayor & Council $ 164,150 $ 130,063-20.8% Economic Development $ 435,010 $ 752,96566.36% Fire Rescue $ 481,600$ 516,53519.34% Library $ 277,891$ 285,5452.75% Parks $ 97,860$ 103,4595.7% Police $ 966,230$ 958,250-0.82% Recreation $ 444,343$ 451,3893.16% Street Lighting $ 38,428 - Planning & Zoning $ 69,784 $ 71,8763.0%

24. General FundFY 14 BudgetFY 15 Proposed% Difference Revenues$ 4,094,953$ 3,612,206 -11.8% Expenditures$ 4,043,538$ 3,668,470 -9.8% Surplus/(Deficit) $ 51,415$ (56,264) Local Option Sales Tax Fund FY 14 BudgetFY 15 Proposed% Difference Revenues$ 716,500$ 762,0006.35% Expenditures$ 716,500$ 702,567-1.9% Surplus/(Deficit)$ -$ 59,433 Road Use Tax FundFY 14 BudgetFY 15 Proposed% Difference Revenues$ 687,500$ 706,5002.76% Expenditures$ 661,749$ 684,9583.5% Surplus/(Deficit)$ 25,751$ 21,542 Revenue & Expenditure Comparisons – All Funds

25. Sewer – All FundsFY 14 BudgetFY 15 Proposed% Difference Revenues$ 3,106,088$ 3,961,372 27.5% Expenditures$ 3,066,688$4,734,370 54.4% Total $ 39,400 Airport FundsFY 14 BudgetFY 15 Proposed% Difference Revenues$ 947,590$ 807,614 -14.8% Expenditures$ 947,590$ 847,415 -10.6% Total $ -$ (39,801) Revenue & Expenditure Comparisons – All Funds (cont.) Building Replacement FundFY 14 BudgetFY 15 Proposed% Difference Expenditures $ - $ 25,000 Total $ -$ (25,000)

26. Notes General Fund Deficit reflects carryover of $200,000 for Sect. 42 Housing, $68,300 for Airport project. When adjusted it leaves a balance of $212,036, of which $100,000 is for reserves. This leaves $112,036 for other Council purposes. Sewer budget has a deficit because money received in prior fiscal years is being spent in FY 14/15.

27. Use of Local Option Sales & Service Tax Revenue$762,000 Streetscape Bond Payment$353,980 VERF Contribution$287,668 Downtown Advertising$20,000 3 rd Ambulance Payoff$15,000 Park Lane/Bell/Eric Dr. Engineering$50,000 Subtotal$726,648 Amount Remaining$35,352

28. Use of Utility Franchise Fee Revenue$600,000 PD/FD Operation Support$113,000 Emergency Levy Substitution$51,170 Citywide Clean-up$20,000 GIS Project (Storm sewer)$8,000 KEDC$100,000 Grant Match for Rail Port Study$15,600 Community Survey$10,000 Public Safety Building Study$30,000 Wayfinding Signage$25,000 Subtotal$372,770 Remaining$227,230 Minus Reserve$100,000 Final Remaining$127,230

29. Sewer – All FundsFY 14 Budget Beginning Balance $550,000 FY14 Projects $510,056 Balance $39,944 2010 General Obligation Bond Revenues

30. Vehicle & Equipment Replacement Fund DepartmentDescriptionReplacement Cost CemeteryPick Up Truck (#14) 24,117 CemeterySnowplow for #14 (#114) 4,500 PolicePatrol Car (#32) 35,000 StreetsAir Compressor (#61) 13,500 SewerUtility Vehicle - Gator (#49) 16,405 Streets4WD Pickup Truck (#11) 26,370 StreetsSnowplow for #11 (#111) 6,250 RecreationSnowplow for Recreation Pickup 6,250 FireSCBA units (20 units)* 148,400 FireAir Compressor* 32,000 Fire4WD Tahoe (#300)* 37,852 350,644 FundFY15 Transfer Amount Road Use Tax Fund$88,497 Sewer Enterprise Fund$33,774 Local Option Sales & Service Tax$287,668 Total$409,940 * $59,296 to VERF for Future Replacements

31. Council Final Changes $45,000 to be used from UtFF to put management internship position back in Discussion regarding demolition of nuisance properties (Staff will see what can be done with what is left in FY 13/14 budget) Discussion of possible purchase of flowers for downtown (Will request funding from SMIDD and use money from FY 13/14 budget)