Ankeny Group Offers Ways to Trim City's Debt, Reduce Taxes

Using some of the city's cash balance and capping capital improvement projects at $5 million a year are some of the strategies offered to lower Ankeny's debt, according to a news release from the city.

At a special presentation Monday, City Manager Jim Spradling outlined a strategy developed by the City's 70 Cent Committee to eliminate the planned 70 cents per $1,000 of taxable valuation debt service levy increase in fiscal year 2015.

The committee initially focused on the city's cash flow and debt obligations to accurately reflect the city's financial position. This analysis revealed an opportunity to eliminate the planned 70-cent increase in 2015 and reduce the levy another 58 cents by fiscal year 2020, the release said. 

"Elimination of the planned 70-cent increase can be achieved if the city council supports the recommended strategy," said Spradling. "We feel this effort has been effective and results in a positive outcome for the citizens of Ankeny." 

The success of the four-part strategy is contingent upon the city council's support for a series of recommended policy changes, including:

• Eliminating the use of interim financing
• Using cash balances to help stabilize the tax rate
• Continue 15-year amortization schedule for bond payments.
• Capping future CIP levy projects at $5 million annually

A number of variables could affect the proposed plan including:

• Growth in debt service taxable valuation
• Actual project costs versus projected costs
• Commercial property tax reform
• Other tax supported operating costs (i.e. 411 pension)

"This plan addresses the city's current debt obligations and provides a roadmap to manage our resources in the long term," said City Councilman Wade Steenhoek in the release. "If we manage our resources wisely, we should be able to reduce and maintain the city's debt obligations without future levy increases well into the future." 

The committee, now called the 2014 Budget Efficiency Committee, will move into phase 2 with a focus on stabilizing the city's operating funds. This will include:

• Service level review
• Realignment of resources
• Early retirement program
• Fleet review
• Capital equipment
• Mid-year census
• Cost recovery review (user fees, permit fees)
• Road Use tax fund

"We plan to look at all city operations to ensure we provide better government to the citizens of Ankeny," said Mark Holm, city councilman, in the release. 

Strategies that improve city operations, create efficiencies and reduce costs will be recommended to the City Council during FY 2014 budget deliberations later this fall.

The city council will consider approval of the committee policy recommendations at its regular meeting set for 5:30 p.m. on Aug. 20.

View the presentation here.