City approves $27M budget

The Newton City Council approved a $27 million city budget on Monday. The budget encompasses general government, special revenue, TIF district, debut service, capital projects permanent and proprietary funds.

Within the budget, the levy rate is decreasing slightly from $17.15 per $1,000 to $17.14 per $1,000. All current city positions will be retained, but it does delay the rehiring of some positions. Adjustments will also be made to the seasonal and temporary positions.

“Every year budgeting is a challenge, but in collaboration with city staff and the city council, we come together around a proposal that seems to meet the city’s mission of being able to provide excellent services to the community at a workable cost,” city director of finance and development Bryan Friedman said. “We are pleased to be able to have this be a stable budget and have the property tax levy actually go down a little bit while still being able to maintain the services.”

A negotiated 2.5 percent contractual wage increase will be applied to all employees. Any step wage increases, per adopted plans and contracts will also be given.

The employee benefits budget for the next fiscal year comes in at $3.47 million, up more than $53,000 from last year. More than half of the funds are going to health insurance at $1.8 million with additional employee expenses including wages, retirement and disability.

The undesignated reserves came in below the city’s target policy of 25 percent at 23 percent. By reducing the reserves, funds will be available for high priority capital expenditures including a new police squad vehicle at $27,000, police computers at $18,000, public works mower at $15,000, a Fire and EMS CPR device at $15,000 and a Fire and EMS power cot at $15,000.

“The city has been intent on making some needed investments into the community in recent years. This budget will enable some of those goals to continue to be met,” Friedman said. “It’s good to be able to complete this process through the city council approval well in advance of the March 15 deadline.”

A $500,000 general obligation bond is also approved to allow for important investments in the community including police vehicle lights and equipment, ADA improvements, gear for the fire department and outdoor warnings sirens. The bond will not impact the debt service levy for the first two years with the majority of the costs backloaded in future years, when other existing debt will be paid down.

Outside agency funding totals $182,500 with funds going to six agencies including the Newton Development Corporation, Newton Housing Development Corporation, Newton Main Street, Heart of Iowa Regional Transit Agency, Newton YMCA and Retired and Senior Volunteer Program.

Contact Jamee A. Pierson at
641-792-3121 ext. 6534 or jpierson@newtondailynews.com