The FY25 proposed budget has a focus on sustained investment in infrastructure projects and providing our staff with the tools they need to continue the excellent services they provide.
Proposed increase of forty-seven ($.47) to the Total Tax Levy Rate
The City has been actively working to maintain operational costs while appropriating funds for future capital needs. In order to pay for future infrastructure projects as scheduled in the CIP, the city will need to bond to pay for capital improvements projects, increasing the FY25 debt levy. This results in a recommended increase to the City’s levy rate of $.47 to $14.23846 per thousand of taxable valuation.
Change to FY25 Revenues
Property tax revenues increased by 2.23%. This is less than the 3.2% increase in 2023 taxable valuation growth due to House File 718 which constrains revenue increases based on taxable valuation growth.
Total FY25 revenues are estimated at $11,387,241 - an overall increase of 10.01%. Proceeds from bonds are not included in this estimate.
Change to FY25 Expenses
Total FY25 expenses (excluding Capital Projects, the ERP and Debt Service) are estimated at $7,743,709. FY24 expenses were estimated at $7,208,825. This is an increase of 7.41%. Of note:
• Wages and Benefits show increases in all departments. Union employee wages are set to increase as per applicable labor contracts.
• General Insurance costs (through ICAP) are expected to increase 30% across all departments. Also set to increase is our Workers Compensation insurance by an estimated 35%.
• The Professional Services line within General Government, which includes Planning Services provided by Bolton and Menk, was increased due to the current economic development occurring within the city.
Capital Investment Projects
The proposed Capital Projects for FY25 include 73rd Street - Phase 1, 68th Street South, Colby Park, the Public Works salt storage facility, and the Equipment Replacement Plan purchases.
• 73rd Street – Phase 1: Bonding for the project will occur in the Spring of FY24, but most of the construction on the project will occur in FY25.
• 68th Street South (full reconstruction) – Funding is still to be determined for this project. Bonding is recommended to occur in conjunction with the bonding for 73rd Street – Phase 1.
• Crack sealing of asphalt portions of University Ave will occur in FY25.
• PCC patching at 66th Street and Colby Ave will occur in FY25.
• Construction of the splash pad and the new playground at Colby Park will continue in FY25.
• Construction on the Public Works salt storage facility will start in FY24 and be completed in FY2