City Council to Meet on Jan. 19, 2020

Included in each City Council information packet is a memo from the City Administrator offering a summary and context of items appearing on the agenda. We will begin publishing these memos here in our news feed to make them more accessible. You can sign up to be notified of news items, agendas and more by email.

Due to the COVID-19 pandemic, public health and safety concerns require City of North Liberty public meetings to be held electronically, so as to limit the spread of the virus. The public is invited to submit questions and comments in advance of the meeting for consideration submitting them to the City Clerk Tracey Mulcahey via email at [email protected].

This meeting may be accessed live by the public on the internet at northlibertyiowa.org/live.

Meeting Note

At Tuesday’s budget work session, I will present the proposed operating budget for FY22. The session will begin at 5:30 P.M. and our management team will be in attendance to address questions or provide additional information respective to their department’s proposed budget. A second work session is planned, in conjunction with the January 26 City Council meeting, where we will discuss capital projects for FY22 and review the proposed CIP for fiscal years 22-26.

North Liberty’s taxable value grew by nearly 7% this year, a significant uptick from last year’s 1.3% growth. As noted in last year’s budget memo, a healthier increase was anticipated for FY22 as our TIF valuation shrunk (and shifted to the total tax valuation) by $19 million.

The 6.93% increase in taxable valuation will result in approximately $500K more in general fund property tax dollars (excludes special revenues) being collected in FY22. In total, this budget includes general fund revenues of $15.058 million, approximately $1.3 million more than in FY21. A big chunk of the additional revenues ($500k) consists of garbage and recycling fees and have an offsetting expense. As the collection agent for Johnson County Refuse, this money is shown as a revenue and expense and is cost neutral for the City.

The following pages provide a detailed looked at the FY22 operating budget, a recap of the FY21 budget and the actual expenditures and revenues for FY20. We have not finetuned the FY23-26 estimates, so please disregard those columns at this time. In addition to the numbers, the following pages provide notes in areas where significant changes occur or further explanation is needed. These pages will be the basis of our conversation on Tuesday.

Below are a few highlights of the proposed FY22 budget for your reference:

Staffing

• There are two positions that were funded at 50% (mid-year start) in FY 21 that now need to be budgeted at 100%. Those include a patrol officer within the Police Department and the Fire Department training officer.
• The IT Coordinator position, which should be filled this month, will be funded with FY19 reserve funds for the remainder of FY21. The proposed FY22 budget includes funding for 100% of the position.
• In phase 2 of adding part time employees to the Fire Department rotation, Chief Platz is proposing to add two day shifts to the weekend (6a-6p). Current part time staffing is Sunday-Thursday from 6p to 6a.
• And finally, the only new full-time position being proposed in FY22, which was asked for last year but not included in the final proposal to Council, is a recommendation from the three Community Center Department Heads. The Community Center Engagement Coordinator (or similar), would be primarily responsible for:
  • Community Center programming for special and underserved populations in collaboration with the library, recreation and other staff. This includes, specifically, new and existing programs for seniors and teens.
  • Initiating and liaising with the council’s proposed Youth Council.
  • Community Center-wide communication to help better promote the facility as a welcoming, inclusive community hub. This connection will be critical when Communications moves to the new civic campus.
  • Collaborating with social service agencies to entice, enhance and promote their work in North Liberty. We believe this is a way to increase our social service support outside of providing agencies funding and grants.
  • Initiate, model and facilitate equity policy at the Community Center.
  • Collaborate with other outside programming such as Summer Lunch & Fun.
• It should be noted that Chief Venenga and Parks Director Goldsmith both requested an additional staff person this year. While both positions are certainly justified, the general fund budget just cannot sustain the expenses in FY22. These positions will be requested again next year, and our hope is to be able to fund them.

Equity & Outreach

• The PD budget includes funding for the contract with Dr. Barnum to analyze public contact by our police department. Additionally, while not specifically identified in this packet, Chief Venenga will continue to make equity training and community engagement a priority in her department.
• An additional $10k is proposed in the social services line item, bumping total contributions to $135k.
• The proposed position in the community center will most certainly enhance our ability to be more inclusive and provide for better outreach.
• All-city equity training is identified as part of the city’s training funds in the General Government category.

Utilities

• The Road Use Tax fund remains strong while funding significant construction projects. To allow the Street Repair Program Fund to save for the next project, staff recommends delaying any future construction projects until a surplus is established. The RUT model conservatively uses the current census for revenue projections, but staff is hopeful that the new census data will be available and used for at least part of the fiscal year.
• For the second year in a row, a rate increase is not proposed for the wastewater fund. With the new plant debt coming online, we have and will be dipping into the fund balance, which was planned for, and still have a strong financial position.
• The Water Fund also shows a deficit, again planned for knowing that the new plant debt was coming online. It appears a need remains for a rate increase of 2% as shown in the model; however, staff will evaluate again in April/May before bringing a recommendation to Council.
• The Storm Water Fund remains status quo; however, staff continues to work on a proposal to overhaul the billing structure to be more in line with best practices used across the country.

Tax Rate & Reserve Funds

• Staff is proposing to use $94K from the FY20 surplus to fund the proposed FY22 general fund deficit. Additionally, several one-time expenditures that would traditionally be funded with general fund money are being proposed to be funded with this surplus.
• The tax rate is proposed to increase by $0.29, pushing the rate/$1000 in valuation to $11.32. This is a direct result of new debt coming on line for the police station. A breakdown of the tax rate and how it will impact property owners can be found on the very last page of this packet. Further discussion regarding the tax rate will take place at the January 28 work session when capital projects are considered.
• 100% of the state backfill credits are budgeted for in FY22. In the past couple of years, we’ve budgeted only partial payment; however, it appears the Governor remains committed to funding the backfill for at least another year.

Despite having an additional $800k in available general fund revenue this year, this budget was not easy to balance. About $450k of that $800k is required just to keep staffing levels at status quo. As we continue to grow, and the public seeks additional services, the challenges will become greater. Once again, our team deserves a great deal of credit for their thoughtfulness and willingness to compromise and seek alternatives. I say this every year because it bears repeating; I am thankful to work with such a talented, public service minded and selfless group of people.