Altoona Budget Committee Meeting Summary

On Thursday, September 12, 2024, the Altoona Budget Committee met to discuss the 2025 budget, including capital projects, debt service, and the closure of Tax Increment District (TID) #3. The meeting featured presentations from Finance Director Tina Nelson and Financial Advisor Sean Lentz, along with discussions on street capital improvements, park lighting, and future budget planning.

Discussion Items

• Budget Schedule Preview: Tina Nelson outlined the upcoming budget timeline: utility budgets on September 26, library and general fund budget policy on October 8 (a Tuesday), general fund and TID #3/#4 budgets on October 11, and final budget meeting/hearing in late November.
• Capital Budget Book: Nelson introduced the new interactive budget book, explaining that "previously borrowed funds" represent money already borrowed but not yet spent, tracked for specific purposes (e.g., public safety, streets). It cannot be repurposed without a budget amendment.
• Debt Service & TID #3 Closure (Sean Lentz):
  • TID #3, established in 2001, has grown by $392 million in incremental value and is scheduled to close. The final year of tax collection (2025) is expected to generate approximately $6.4 million, all of which will be directed to the city's affordable housing fund per prior council decision.
  • After all TID #3 debt is paid off (likely by end of 2025), an estimated $4.5 million will remain for redistribution among taxing jurisdictions (city, school district, county, tech college). The city can decide how to use its share; this is a one-time opportunity.
  • The city's current general obligation debt is low relative to capacity (~$13.8 million outstanding vs. ~$50 million capacity). Existing debt will be fully retired by 2033. Due to the TID closure, the city can increase its levy by about $600,000 next year without raising taxpayers' rates, under state levy limit rules.
• Future Borrowing Strategy: The committee discussed the possibility of combining two years of borrowing (as was done in 2023) to reduce issuance costs and take advantage of investment returns.
• 2025 Capital Projects – Streets: The five-year street Capital Improvement Plan (CIP) includes full reconstruction projects based on pavement condition and utility age. For example, the Seven Street West Reconstruction ($789,000 total) is funded by utility contributions, debt service, and a $205,000 grant. Assessments may apply to affected residents.
• Cinder City Park Lighting: A $335,000 request to replace 40-year-old lights at Bemont Field was discussed. Chad Durkup (Parks & Rec) noted that LED alternatives could save energy and may allow both Bemont and Hagen fields to be done for the same price. Options for private donations or capital campaigns were explored, especially for larger field complex upgrades (turf, bleachers).
• Field Complex Potential: Mike Golott and Chad Durkup reported they are forming a stakeholder group to gauge interest in a major field renovation; the city may partner with the school district and seek private funding.

Key Outcomes

• No formal votes were taken; the meeting was informational.
• The committee acknowledged the need for careful planning regarding the TID #3 windfall and the upcoming levy decisions.
• Motion to adjourn made by Councilperson Lima, seconded by Councilperson Beeren, approved unanimously at 5:26 PM.
• Next meetings are scheduled as outlined in the budget timeline.