Pella Chronicle

Local News

March 12, 2014

City Council adopts fiscal year 2014-15 budget

Following a public hearing, the Pella City Council approved the adoption of the FY 14-15 Budget.

In February, special budget work sessions were held with the City Council to discuss the FY 14-15 Budget. Listed below are highlights of the proposed FY 14-15 Budget, which include all City operations:-

-The City’s FY 14-15 Budget totals $40,917,954. The expenses include $20,138,571 for operating expenses; $7,391,645 for compensation & benefits; $149,449 for developer reimbursements; $2,525,924 for debt; and $10,712,365 for capital improvements. The overall budget has a projected drawdown of fund balance of $3,073,457 which is attributed mainly to timing differences for the completion of the Indoor Pool Renovation and the Power Plant Deconstruction.

-For the thirteenth consecutive year, the City’s property tax rate will remain at $10.20 per $1,000 of taxable valuation or lower. In comparing us to similar sized communities, the City of Pella has one of the lowest tax rates in the State.

-The proposed budget includes $1,882,000 of expenses for the renovation for the City’s Indoor Pool. Construction is expected to begin in April of 2014 and is tentatively scheduled for completion in November of this year. Funding for the renovation is proposed to be provided by a $3.2 million bond issuance which will be repaid through the City’s local option sales tax, which was extended in 2011. The overall cost of the renovation for the Indoor Pool is approximately $4.0 million, which includes replacement of the roof for the facility in 2011.

-The proposed budget also continues the City’s commitment to addressing aging infrastructure. This commitment includes $854,000 for water, sanitary sewer main replacement and street construction of Oskaloosa Street from East 2nd to Hazel, which will likely run through FY 15-16. The total estimate cost for this project is $2.5 million and includes funding from both the Pella Business Corridor TIF District and federal funding received through the regional planning association.

-The proposed budget includes funding of $3,374,700 for the Pella Sports Park, which is tentatively scheduled to open in the spring of 2015. The City’s projected funding for FY 14-15 is $609,391, which will be provided by local option funding. Overall, the City’s funding commitment of $2,657,000 is approximately 34% of the $7.8 million project.

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