Fiscal Year 2019 Budget

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sources that are independent of the operating budget, this process allows both staff and elected officials the opportunity to study and discuss these projects in greater detail since the process is not competing with the operating budget discussion. The process also allows more time to be spent on reviewing and scrutinizing the operating budgets for each department. The entire 5-year CIP is approved by the Council in coordination with the operating budget, however only the projects that have expenditures identified in Fiscal Year 2019 have been included in this budget. Levy Request & Impact Staff begins the preparation of each new budget with the stated goal of not increasing the overall levy rate above the $11.99 per $1,000 of valuation. The ability to maintain the levy at this rate mainly depends on two factors. The first factor is the amount of new funding being requested by the departments. The second factor is the increase in property valuation as determined by the County Assessor and any applied state modification to valuations. The city experienced 1.6 percent growth in taxable valuation for taxes payable in Fiscal Year 2019. This is on top of the 2.13 percent increase for Fiscal Year 2018. Combination of new construction and overall increases in property values account for this increase. The following chart shows the growth in property valuations the city has experienced the last two years. The valuations are displayed by property class type for both 100% valuation and taxable valuation. Taxable valuation is determined after state mandated rollbacks and any other tax credits or exemptions have been applied.

100% VALUATIONS - ALL PROPERTY

TAXABLE VALUATIONS – ALL PROPERTY

Increase / (Decrease) 24,684,010 (332,810) 10,249,939 2,208,217 1,545,301

Increase / (Decrease)

FY 18

FY 19

FY 18

FY 19

Property Class

512,579,730 537,263,740

291,858,299 1,930,307 157,698,801 26,241,204 20,517,245 1,824,877 (1,229,728) 499,549,781 708,776

298,830,866 2,031,480 166,923,753 28,228,599 20,801,552 1,914,513 (1,188,984) 518,342,495 800,716

6,972,567 101,173 9,224,952 1,987,395 284,307

Residential

4,063,850

3,731,040

Ag Land

175,220,890 185,470,829

Commercial Industrial

29,156,893 24,869,350

31,365,110 26,414,651

Multiresidential

787,529

889,684

102,155 89,636 40,744

91,940 89,636 40,744

Railroads

Utilities W/O Gas & Electric Military Exempt Valuation W/O G&E Utilites Gas & Electric Utility Valuation Valuation with G&E Utilties

1,824,877 (1,229,728)

1,914,513 (1,188,984)

747,273,391 785,860,583

38,587,192

18,792,714

13,249,249

16,010,991

2,761,742

5,656,217

6,042,892

386,675

760,522,640 801,871,574

41,348,934

505,205,998

524,385,387

19,179,389

Source: Iowa Department of Management

In terms of levy dollars, this new valuation allows the city to collect an additional $112,394 without impacting the tax levy. So, if the value of a property remained the same for Fiscal Year 2018 and Fiscal Year 2019, the homeowner would not see an increase in their individual taxes paid. The overall tax levy is comprised of several smaller component levies. These levies are used for general operations, property insurance, employee benefits and debt service. A comparison of these levy rates is a follows: