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City of Burlington, Iowa CITY OF BURLINGTON, IOWA Annual Budget fit-a/ Year 2003-2004 CITY OF BURLINGTON, IOWA ANNUAL BUDGET 2003 - 2004 CITY COUNCIL Tim Scott, Mayor Roderick E. Kellogg, Mayor Pro Tern Mary M. Baker Mike Edwards Chris King Prepared by: Bruce R. Slagle City Manager and Douglas J. Worden Deputy City Manager Human Rights Commission Potters Field Auditorium Apple Trees Museum Contributions-Other Agencies Welcome Center Library R.S.V.P. Park Maintenance & Operation Park Swirnmina- Pool CityISchool Swimming Pool Riverfront Maintenance & Development Port of Burlington Mall Maintenance Forestry Maintenance & Operation Senior Center Human Development Contingency City Hall Engineering Public Works Administration Public Works Bldg. Public Transit Operations Depot Home & Community Development Contingency Executive Administration Personnel Sew~ces City Council Legal Services Administration Clty Clerk Development Administration Finance Adrn~nistratlon Accounting Computer Operations General L~ability Licensed & Non Licensed Vehicles Building and Content Policy and Administration Contingency SPECIAL REVENUE FUNDS RoadUse Tax Fund Statement Fund Balance Summary Revenue Detail Summary Expenditure Detail: I Street Maintenance I Snow Removal I 1 Storm Sewer I Traffic Marking & Signs Traffic signais Recreation Fund Fund Summary Fund Balance SUmmary Revenue Detail Summary Expenditure Detail Recreation RecreationalActivities youth Center Operations Municipal Band Bridqe Fund: Fund Summaw Fund Balance ~ummary Revenue Detail S~mmalY Expenditure Detail: Bridge Maintenance and Operation HotellMotel Tax Fund Fund Summary Fund Balance Summary Revenue Detail Summary Expenditure Summary Expenditure Detail: HotellMotel Tax Fund Eguipment Replacement Fund Fund Statement Fund Balance Summary Revenue Detail Summary Expenditure Detail: Equipment Replacement Sales Tax Fund Fund Summary Fund Balance Summary Revenue Detail Summary Expenditure Detail Sales Tax Downtown SSMlD Fund Surnmary Fund Balance Summary Revenue Detail Summary Expenditure Detail Downtown SSMlD Airport Fund Fund Summary Fund Balance S~mmary Revenue Detail Summary Expenditure Detail: Airport Fund ENTERPRISE FUND Parkina Fund Fund Statement Fund Balance Statement Revenue Detail Summary Expenditure Detail: Parking Maintenance Parking Enforcement Sewer Fund Fund Statement Fund Balance Summary Revenue Detail Summary Expenditure Detail: Wastewater Treatment Administration Wastewater Treatment Operation Sanitary Sewer Maintenance Sewer Revenue Bond 1997 Sewer Revenue Bond 1998 Sewer Revenue Bond 2001 Solid Waste Manaaement Fund Statement Fund Balance Summary Revenue Detail Expenditure Detail: Solid Waste Management Golf Course Fund Fund Statement Fund Balance Summary Revenue Detail Expenditure Detail: Flint Hills Golf Course Rec Plex Fund Statement Fund Balance Summary Revenue Detail Expenditure Detail Rec Plex Water Fund Fund Statement Fund Balance Summary Revenue Detail Expenditure Detail: Waterworks INTERNAL SERVICE FUND Propertv Maintenance Fund Fund Statement Fund Balance SUmmafy Revenue Detail Summary Expenditure Detail: Property Maintenance Vehicle Maintenance Fund Fund Statement Fund Balance Summary Revenue Detail S~mmaly Expenditure Detail: Vehicle Maintenance insurance Redewe Fund Statement Fund Balance S~InmaI'y Revenue Detail SummaIy Expenditure Detail: Self-Insurance Losses DEBT SERVICE FUND Fund Statement General Obligation Debt Schedule Fund Balance Statement Computation of Debt Limit and Legal Debt Margin Revenue Detail Summary Expenditure Detail: 1993 Police StationlGolf course G.O. Bonds 1994 Pheasant Run I994 Corporate Purpose 1996 Corporate Purpose Bonds 1997 G. 0. Refunding 1999 G. 0. Bonds 1998 G. 0. Bonds Hotel Burlington Bonds Public Works Bonds 2001 Airport Bond 2001 Fire Station Bond 2002 G. 0. Bond TRUST AND AGENCY FUND Fund Statement Fund Balance Summary Revenue Detail S~inmary Expenditure Detail: Miscellaneous Trust and Agency CAPITAL PROJECTS FUND Tax Increment Fund Fund Statement Fund Balance Summary Revenue Detail Summary Expenditure Detail Tax Increment Ca~italProiects Fund Fund Statement Fund Balance Summary Revenue Detail summary Expenditure Detail Capital Projects Capital improvement Program Five Year Street Plan SUPPLEMENTAL INFORMATION Community Profile Miscellaneous Statistical Data Financial Policies Glossary -I 1 City of 1 ngton II March 3,2003 Dear Mayor Scott, City Council Members and Citizens of Burlington: Enclosed herein is the City of Burlington's adopted budget for Fiscal Year 2003-2004. Total expenditures amount to $41,303,651. The City of Burlington faced many challenges this year when budgeting for this fiscal yea.. Economic struggles around the nation have impacted government revenues. In addition, the State of Iowa budget troubles forced the State to reduce its spending for FY 2003 due to decreased revenue projections. This resulted in a 2.3 percent cut in revenues shared with cities, including the bank franchise tax, Enrich Iowa funds, and the Machinery and Equipment Reimbursements. Property tax credits and exemptions were also affected by the 2.3 percent cut, except the homestead exemption was funded at 98 percent kdthe military property tax credit was funded at 100 percent. The revenue from the State of Iowa for FY 2004 is yet to be set, but all indications are that revenues will not be restored and we will be lucky not to experience additional reductions. The State of Iowa has also revised its budget fonns and annual financial report forms to be consistent with the reorganization of municipal finances required by the Governmental Accounting Standards Board Statement 34 (GASB-34). Primarily, this requires cities to transition from reporting their expenditures in four program areas to nine function areas. A Resolution of Adjustment of Current City Budget must be adopted by cities in order to implement the transition. The January 1, 2002, property tax valuation serves as the basis for calculating property taxes in FY 2004. Since 1978, residential, commercial, industrial, and agricultural classifications have been subject to an assessment limitation order, or rollback, that limits annual growth in property values to four percent. For Fiscal Year 2003-04 the rollback percentage for residential is 51.3874, all other categories will be at 100 percent. Resulting in a total assessed property valuation for this proposed budget of $554,045,751 or a .13 percent increase, therefore no noticeable increase. City of Burlington rn 400 Washington rn Burlington, Iowa 52601 The Municipal Fire and Police Retirement System of Iowa (MFPRSI) have raised the contribution rate for cities effective July 1, 2003. The cities contribution under MWRSI will increase &om 17 percent to a rate of 20.48 percent of gross wages. For many years the cities contribution was at 17 percent, which was the state required minimum, even when the system was over hnded. During this period of higher returns on investments the state would not cut the cities contribution, but cut theirs and then voted to provide additional benefits. Six years ago City Council decided to allocate sales tax fimds to be set aside for future property tax relief over a five-year period in an effort to maintain a steady property tax rate. The fiRh and final year of the sales tax set-aside was applied to the FY 2001-02 budget. However, in an effort to lower the property tax rate in the current budget (FY 2002-03) we included the use of an additional $ 430,000 in sales tax revenues. We arrived at those additional sales tax dollars by three means: a reconciliation payment, interest income on sales tax dollars over the last few years, and the elimination of Target Neighborhood funding. Therefore, the additional sales tax dollars used to lower the tax rate over the past six years was no longer available. One year ago City Council also decided to allocate $ 120,000 of the gambling proceeds &om the riverboat for property tax relief. These funds were previously committed to paying bonds for the riverfront improvements. The bonds for the riverfront improvements were paid off in June of 2002. Each year we base the amount of sales tax revenue on an estimated figure received &om the State of Iowa Department of Revenue and Finance. This year we have decreased the amount estimated &om sales tax revenues to be received &om $3,150,000 in the current fiscal year budget to $3,000,000 for this budget. According to the formula approved by the voters of Burlington, one-half or $ 1,500,000 of the amount to be received this year will be used for property tax relief. Therefore, there was $ 75,000 less in sales tax revenues to use for property tax relief in this budget. On June 3, 2002 the City of Burlington sold $ 4,400,000 in general obligation bonds. The bonds were sold predominately for street reconstruction with a minor amount for equipment and auditorium air conditioning. At the time of the hearing, City staff informed the Council and public that if the City's taxable valuation remains stable, the tax rate would increase by approximately $.30 to pay for these bonds. The adopted tax rate levy of $13.28 represents a $ .15 increase over the 2002-03 adopted levy of $ 13.13. While we realize that it was a goal to maintain a steady property tax rate, it has become totally unavoidable to do so. With increases in Fire and Police Pensions and the Debt Service along with decreases in sales tax revenues a tax rate increase was necessary. The following table depicts the comparison of properly tax asking: FY 2002-03 Budget FY 2003-04 Budget Assessed
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