Budget Document - City of Urbandale

this review, an outside consultant was used to assist this group. As a result of the work of
the task force, a recommendation was forwarded to the city council to engage in an active
partnership with the Urbandale Development Association to enhance the city’s economic
development activity. In the fall of 2010, the UDA contracted for services with an economic
development professional to assist the City in this strategic activity. The budget also
recognizes and provides funding for existing economic development relationships, but at a
reduced level. As the City’s overall efforts increase, it is anticipated that outside financial
support of the effort will increase. Regardless of the outcome of the current efforts, the City
is positioning itself for a long term commitment to this effort.
8. Storm Water Utility - Beginning on July 1, 2010, the city implemented a Storm
Water Utility to help fund storm water management related expenses and be operated as a
self-supporting enterprise fund. This fund will be supported solely by user fees, not property
taxes. The rate was established at $1.50 per ERU (Equivalent Residential Unit), which is a
measurement of the anticipated storm water run off from the property. One ERU is assigned
to each residential property and non residential property is assigned ERU’s based upon a
formula that factor in square footage and other imperious surfaces. The operating budget
does include revenue from the storm water utility in FY2011-12, as projected in the long
range financial model. The City of Urbandale is currently the lowest rate of cities that have
implemented such a fee. The fee is programmed to increase by $.25 per ERU on July 1,
2011 and by an additional $.25 on July 1, 2012.
The recommended FY2011-12 budget contains an increase of $2,121,495 (5.4%) in
expenditures over the FY2010-11 adopted budget. Of this total, operating expenses, net of
transfers will be increased by $1,218,254 (4.4%). This increase does take into account the
27 th pay cycle that is impacting the FY2011-12 budget. The recommended expenditures for
FY2011-12 will not require an increase in the City’s general property tax levy rate.
Incorporated into last year’s review and evaluation, an increase of $0.10 in the debt service
levy was approved. Under the recommended FY2011-12 budget, the general tax levy rate
will remain at $7.17, the debt service levy rate will increase $0.10 to $2.15, and the Police &
Fire Retirement levy will increase from $0.10 to $0.20. This levy is available to City’s to fund
the employer’s share of pension contributions to the Chapter 411 Municipal Fire & Police
Retirement System and is not only related to the City’s action to add additional full time staff
to the City’s Fire and EMS operation, but in direct response to the significant increase in
employer contributions to fund the 411 system. To ensure that funds were available to
accomplish Council’s strategic priority of fully staffing Fire/EMS, it was necessary to
implement the public safety retirement levy in 2010-11. The current recommended rate of
$0.20 will fund the City’s contribution for all fire and EMS personnel and 14% of police
personnel pension costs for FY2011-12. While immaterial in total dollars ($8,689), the ag
land levy rate will remain at the statutory limit of $3.00375 based on Council’s prior
guidance. The City’s combined tax levy rate will be $9.52/$1,000 of valuation.
The recommended operating budget contains financial projections for the
2011-12 and 2012-13 fiscal years. The two-year budget format was approved by the City
Council in 1981 and continues to be a useful tool in the City’s financial planning efforts. It
should be noted that FY2012-13 operating expenditures are anticipated to increase by
$624,033 (1.9%).
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