FY 2020 Budget

Budget Impact: The Street Department largely operates without subsidy from the property tax base. The majority of it's operations are funded by the Road Use Tax that the city receives from the State of Iowa. This money is generated by the sale of motor vehicle fuel, license plate sales and car registration fees. The costs associated with the department's proportional share of group health insurance, workers compensation insurance and the city's match for payroll taxes (FICA & IPERS) are covered by the General Fund and group insurance tax levy. This amounts to approximately 20.48% of the total operating budget for the public works function. The budget presented maintains the status quo for the Street Department while providing for the needs to operate the department in a efficient and effective manner. The maintenance of the city's streets is a priority for the department and the costs associated with that maintenance can fluctuate yearly. While operations for the department are covered by Road Use Tax funds, equipment purchases and most large street maintenance items are covered by the department's share of Local Option Sales Tax receipts. This budget also allocates $165,000 from excess Road Use Tax revenues to utilize on street maintenance projects. As you read though the budget, you will notice the remaining divisions within the Street Department are budgeted separately, however their total allocations are included in the amounts displayed above.

Future Concerns:

In the next few years there is the potential for several retirements within the department. Currently, when there are openings it has been difficult to find qualified and experienced employees. Another potential concern is the result of the 2020 Census. Road Use Tax is allocated to cities throughout the state based upon official Census population. If the city experiences a decrease in population, this will result in a direct reduction of Road Use Tax funds received. This could cause more of the department's operations to be shifted over to the property tax levy for funding. In addition to an adjustment from the 2020 Census, the cost of operations for the Department continue to increase. As these costs continue to rise, the amount of Road Use Tax needed to cover operations will come to a point where there is not extra revenue to cover the maintenance projects. At that time, those maintenance projects will fall under the purview of the Department's share of Local Option Sales Tax revenues.

Employees

Percent of General Fund Expenditures (net transfers)

14

14

14

14

2

2

2

2

Actual 16/17 Actual 17/18 Budget 18/19 Budget 19/20

Public Works

Number of Employees (FTEs)

Part Time

95