Budget Document - City of Urbandale

It should be noted that an internal service fund was created to finance property and casualty
insurance expenditures when the City joined ICAP. This fund was originally established at a
level of $75,000 and had reached a level of $600,885 by the start of FY2010-11. The fund is
used to finance any future premium increases, special assessments levied by the pools or
losses experienced through an increase in deductibles. This fund could also be used to
purchase a “tail” policy for the City’s liability, automobile, police, property and public officials
liability coverages, if pool membership should be discontinued. A “tail” policy would provide
the City with coverage for outstanding claims from the date of withdrawal. In order to
maintain the financial integrity of this fund, contributions from the operating budget will remain
steady from FY2010-11 and FY2011-12.
The FY2011-12 operating budget assumes that fuel prices will rise over current levels, but the
budgeted number still reflects a slightly lower estimate than FY2010-11 adopted. In order to
address overall ongoing trend of higher fuel prices, fuel conservation efforts are being
expanded by the City’s fleet operating departments. The departments will continue to review
the specifications for all new vehicles, encourage the greater use of alternative fuels,
recommend changes in employee driving habits and analyze the effectiveness of hybrid and
E85 vehicles. It is anticipated that natural gas prices will continue to increase during the
upcoming fiscal year, but that electric prices will remain stable. It is projected that the City’s
utility costs will increase by 0.6% during FY2011-12.
Many of the above mentioned factors helped to shape the recommended operating budget
for 2011-12. The following charts graphically depict the FY2011-12 recommended
expenditures by major functions and the expenditure trends for the last ten years:
FY2011-12 Recommended Expenditures By Function
Debt Service
21% Public Safety
24%
General
Government
8%
Public Works
17%
Community &
Economic
Development
15%
Culture & Recreation
16%
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