Budget Highlights $ 82 million

1. Fiscal Year 2011/12 Budget Highlights $ 82 million

2. FY 2011/12 Budget Highlights The City of Bettendorf’s financial outlook for the next 18 months remains stable, despite the downturn in our national economy: • Healthy Fund Balances • Significant General Fund levy growth available • Continue history of Conservative Spending • Stable Revenue Streams • Continued strong fiscal planning and adherence to fiscal policies

3. Quote from Moody’s Investors Service April 2010 – “The assignment of the City’s Aa1 rating reflects the city’s moderately-sized tax base experiencing ongoing growth due to residential and commercial development; sound financial operations supported by solid cash reserves and ample financial flexibility. We believe the city’s financial profile will remain healthy due to solid cash reserves, management’s adherence to a a formal General Fund Balance policy, and significant operating margin within the tax rate limit. ”

4. Fiscal Year 2011/12Where the City’s money goes:

5. Fiscal Year 2011/12 Where the City money comes from:

6. FY 2011/12 Budget Highlights: 1) No Increase in the Levy Rate: $12.60 Bettendorf is one of a few Iowa cities with general fund levy rate significantly below $8.10. Allows 32.1% levy growth equating to $4.3 million of potential property taxes

7. Taxes Current Year How We Compare to Other Cities? In order by General Fund Levy Rate of all Iowa cities with populations over 20,000, plus Clive

8. Impact of Rollback on Your Property Taxes: Levy Rate $12.60 The City’s property tax levy remains unchanged at $12.60 in FY 11/12. However, the state rollback, or percentage of residential property that is taxable, is increasing from 46.9094% to 48.5299% resulting in a 3.45% increase on residential property. Commercial property is currently taxed at 100% of assessed value and as a result commercial property taxes will remain unchanged.

9. FY 2011/12 Budget Highlights • Provides funding for all existing City services: • Frozen operating budgets where possible; with reductions in seasonal part time labor and professional services • Continued close monitoring of over time • Funds wage increases for all union and non-unions employees

10. Union Settlements Funds second year of four year contracts with all of our bargaining units

11. FY 2011/12 Budget Highlights:3) Projects Major Revenues to remain Stable

12. Building Permit History

13. FY 2011/12 Budget Proposes:4) All Major Fund Balances to remain stable

14. FY 2011/12 Budget Highlights: • Funds Road Salt budget at $730,000; recommends going to a more liquid application program with purchase of new Brine Maker and 2 new brine applicators • Continued commitment towards Code Enforcement Program: $122,000 • Funds expanded Sunday Library Hours from noon – 5 pm October through May - $16,000

15. FY 2011/12 Budget Highlights: 8) Health Insurance – • Continue to aggressively manage our Health Insurance Fund. • Recommend moving to Wellmark with 8% projected increase in claims vs 11% national • (Current provider, Ullico bid 10%) • Maintain Specific Stop Loss at $50K • Currently have almost $1 million in fund balance to fund up to maximum aggregate attachment point (125% of expected claims)

16. Health Insurance continued • History of health claims: 7 year average increase 4.25% (National average 11%) • FY 04/05: $2,252,920 • FY 05/06: $2,225,112 • FY 06/07: $2,256,994 • FY 07/08: $2,330,055 • FY 08/09: $2,541,497 • FY 09/10: $2,826,770 • FY 10/11: $2,719,408 Projected • FY 11/12: $2,923,544 Projected (Maximum exposure $3.51 million) • Health Committee continues to meet quarterly to monitor our existing health care plan

17. FY 2011/12 Budget Highlights: 9) Liability Insurance – Total Liability Insurance up 5.3%. Of that increase: • Workers Compensation Fee up $67,913: • Increased Mod rate from 1.1 to 1.18 due to 4 high dollar claims public safety claims • Striving to manage our Work Comp insurance costs although….. • Continue to have increased wages • 5% to 20% State of Iowa published rate increases on various job classifications • The Safety Committee continues to meet quarterly to discuss safe work practices

18. FY 2011/12 Budget Highlights:10) User Fees - Continue to supplement the budget with user fees, when appropriate, to stabilize property tax levy rate. User Fees for several programs are recommended to increase in an effort to cover increased costs: • Storm water Fee - no increase • Sewer Fee - no increase • Park & Recreation fees – marginalincreases to Camp Mac, Sports & Games and Teen Camp programs as well as shelter and room rentals • LFC -4% 7/1/10, 4% on only Adult & Senior Memberships 7/1/11 • Palmer Hills – $1 on 9-hole & Senior Rounds and Range Balls • Splash Landing - no increase • Family Museum door admissions - no increase • Transit fares - increase to $1.00 7/1/11, up from $.60 • Garbage Fee - 3% 4/1/11 equates to $5.40 for large cart annually

19. Proposed Solid Waste Fee Increases • Propose a 3% increase in fees beginning April 15, 2011 to balance revenues and expenditures – BREAK EVEN • Increased cost of vehicle replacements and shorter life • Increased cost of labor • Increased tonnage at landfill-largely bulky waste and e-waste

20. FY 2011/12 Budget Highlights: 11) Gaming Revenue - $1.720 million(Currently capped at $1.935 million annually) Allocated to supplement operating budgets for: • Enterprise Funds - $1,120,660 • Road Use Fund (salt) - $250,000 • Economic Development - $203,167 • Other Funds - $180,000 If not for Gaming Revenue, user fees would be significantly higher or property taxes would be needed to supplement budgets.

21. Community Improvement Program FY 11/12 $15 million – Across all funds • $11.9 million: Public Works, Community Development, Traffic and Parks & Recreation • $3 million: 1st Phase of Tanglefoot, Devils Glen to Bus Barn Entrance: 3 lane with 10’ separated recreation trail on north side • $2.3 million: Sealcoat Replacements including Robeson Ave, Alcoa subdivision – all streets, Ten Plus from Central to 28th, North Oak, Oak Lane • $1.39 million: Various recreation trails including Mississippi Riverfront Trail from Riverdale to East City Limits ($800,000 Federal Funding) and separated trail on Devils Glen Road east side Middle Road to Devils Glen Park • $1.1 million: Various Street Overlays • $829,000: Various Traffic Projects

22. Community Improvement Program FY 11/12 continued • $11.9 million continued • $520,000: Various Alley improvements • $500,000:Maplecrest: 29th west to Hydrant at #3311 • $500,000: Street patching throughout the City • $450,000: I-80 Water main extension – TIF funding • $350,000: Downtown Streetscape Master Plan • $326,000: Forrest Grove sealcoat replacement west City Limits to Eagle Ridge – 4 lane

23. Community Improvement Program FY 11/12 continued • $11.9 million continued • $250,000: Annual Funding for Parks Projects • $200,000: Sealcoat Rural Roads • $175,000: Various Sidewalks • $150,000: Façade Program and relocation program at I-74 • $134,000: Various city-wide projects including renovated restrooms on main level at Library

24. Faye’s Field

25. Community Improvement Program continued • $1,180,000 Sewer Utility Projects • Hopewell Interceptor – Hopewell to Forest Grove Phase III • Infiltration/Inflow analysis and city-wide improvements • Chimney Seals, Manhole rehabilitation, sewer televising • West pigeon Creek Interceptor at Century Heights

26. Community Improvement Program continued • $1.49 million Storm Water Projects • Hopewell Creek Detention at new PV school, 8 acres • Ginger Creek Detention at 53rd • Stafford Creek – Maplecrest to Middle • Small Storm Sewers & Sewer Linings & Intake Repair • Various Council priorities to be determined: $250,000

27. Community Improvement Program continued • Enterprise Fund Projects: $558,000 • $418,000 Palmer Hills Golf Course Improvements: Interior Renovation Projects, holes #15 &#17, regrade holes #15 &#16 • $44,000 Splash Landing: Painting slides and pool • $65,500 FMAS: Exhibit design, development and evaluation • $30,000 Life Fitness Center: Lighting replacement

28. Capital Equipment • Funds $577,500 of new/replacement Vehicles including: • $214,500: 6 replacement police Squad Cars/SUVs • $30,000: Brine Applicators • $108,000: 4x4 mower, 2 ball field drags, utility cart, & skid loader- Parks • $81,000: mower, chemical sprayer & utility cart at Palmer Hills Golf Course • $144,000: Backhoe & 4x4 heavy duty pick-up for the Sewer • Funds $198,640 of new/replacement Electronic Equipment

30. ALL LEVY RATES ARE FOR FY 10/11. Representatives from each taxing entity as of 2/23/11 have not finalized levies for FY 11/12 or do not anticipate significant changes.

31. Potential Legislative Issues • Governor’s Proposed Reduction in Commercial Property taxable valuation - 40 % rollback in 5 years • Governor’s proposed limitation on residential growth to 2% from 4% • Increase in Gaming Taxes for casinos from 22% to 36% • Local Impact • Mandated increase in Police/Fire Pension contributions Other Issues: • Results of Census and impact • ADA Implications - Sidewalks • Sewer utility – impact of waste water treatment plant improvements and proposed equalization basin - $49 million

32. Estimated Impact of 40% Commercial Property Tax Rollback

33. Effect of Census 2010

34. Budget Issues - Council Discussion • 1) Review Major Revenue Sources • 2) Review Fund Equity Balances across all funds • 3) Discuss Governor’s Proposal on Commercial Property Tax Rollback • 40% rollback in 5 years • Effective 7/1/12 • 4) Review Latest Census #’s if available and impact • 5) Review & establish Road Use Salt Budget and possible migration towards a more liquid application program – Purchase Brine Maker & 2 Applicators • 6) Review Funding Support for all Enterprise Funds • Gaming • Increased Garbage Fee – 3% • Increased Transit Fares – from $0.60 to $1.00 • 7) Review proposed Renewal for Health Insurance • 8) Review Liability Insurance

35. Budget Issues - Council Discussion • 9) Review Vehicle Purchases • Transition to Tahoe’s for Police • 10) Review all other Capital Equipment and Electronic Equipment Purchases • 11) Address Solution to $150,000 General Fund Shortfall • Voluntary Separation Program – Impact • 12) Discuss proposed Business Registration Program - $15,000 new revenue • 13) Questions & comments on 5-year CIP Program & authorization to proceed with issuance of: • $15 million bonds for CIP • $2 million bonds for Sewer • 14) Administrative recommendation to defer Fire Chief’s staffing plan • 15) Establish the Levy Rate: Administrative recommendation to hold the levy rate at the current $12.60 per $1,000 taxable value

36. Accomplishments for 10/11 Family Circle Recognition Citizen Survey Results Snow Removal I-74 Bridge and Downtown Retention Strategy Completed Capital Projects Opening of the Scott Emergency Communication Center

37. Major Initiatives for 11/12 • Waste Water Treatment Plant/ Equalization Basin; 7/1/12 +$0.17, annual increases thereafter; • I-80/Middle Development; • Forest Grove Park Design • Continuation of Infrastructure plan • Downtown Master Plan • City's Economic Development Policy and Strategy • Downtown Business Retention and Attraction Strategy • Stormwater Management: Policies and Fees • Neighborhood Refurbishment Strategy •   Rental Housing Registration and Inspection

38. Questions and Answers