Annexation

The most important issue facing Adel in the next three years is protecting our eastern border from Waukee’s encroachment.

Protecting our border can be done one of two ways:

1.  Extending the existing moratorium agreement running north and south along R16 and just to the east of Monarch Manufacturing set to expire in April of 2021.

2.  Extending Adel’s sewer east which would position us to annex north and south on the western side of the moratorium line.

When Waukee annexed over 3,000 acres this summer, the only reason it did not extend to the Raccoon River was Adel’s annexation in 2010 east to Ortonville / R16 and establishing a moratorium agreement with Waukee.  Believe me that Waukee will be set to file papers and annex as much land around Adel as they want when the moratorium expires.

Annexation has been a topic for me as far back as 11 years.  See the highlighted parts of this September 19, 2006 letter to the Dallas County News editor regarding annexation, growth of the western suburbs and change in Adel – 11 years ago:

Letter to the Editor, Dallas County News – September 19, 2006

Two years later when Waukee was considering some very aggressive annexation plans the mayor of Dallas Center and I penned the following January 22, 2008 letter to the editor:

Letter to the Editor, Dallas County News – January 22, 2008

Because of these conditions I lead the annexation effort of nearly 700 acres back in the 2008 – 2010 to protect our eastern border. It took almost two years to complete the annexation. As part of effort I signed the moratorium agreement with Waukee.  The same agreement that stopped Waukee at R16 this summer.

It is time again to get assertive with annexation efforts. This issue must be addressed in earnest over the next two years. In three years it will be too late.

NOVEMBER 7th IS NOT THE TIME TO TAKE A CHANCE ON INEXPERIENCE.

You need an experienced mayor to protect  our eastern border from Waukee’s reach.

Police and Fire Departments

Public Safety

Before I describe the great police force and volunteer firefighters we have, I have to comment on the following from Mr. Nordman’s website:

“…Our police department continues to patrol/protect new areas with no new equipment or staff. And our very small fire department is lacking the resources needed to keep civilians safe. “

I am running a positive campaign however I feel compelled to address these baseless accusations, that the police have “no new equipment”, and the fire department is “very small” and is unable to “keep civilians safe” because of lack of resources.

When I saw this post I spoke with both the police chief and fire chief about the conversation each had with Mr. Nordman and how he could come to these conclusions.  I found that neither of the chiefs had spoken to Mr. Nordman.

These statements are uniformed at best; irresponsible and reckless at worst.

NOVEMBER 7th IS NOT THE TIME TO TAKE A CHANCE ON INEXPERIENCE.


Police Department

The police department is in the best financial shape it has been in.  75% of general fund revenues ($724,000) are dedicated to police.

Equipment:

  • New patrol cars are purchased on a regular basis through the long term capital improvements budget
  • Dash cameras and computers are in all patrol cars
  • Body cameras were just added in August in time for use during the Sweetcorn Festival

Our Police Department has as much of the leading edge equipment a force our size could have.

Staffing:

Compared with surrounding police departments to cities of similar size the per capita ratio is the lowest indicating our force is fully staffed as demonstrated by this table:

Adel-Police-Stats


Resource Officer:

In 2006 we partnered with the ADM School District to assign a Resource (uniformed police) Officer in the school while classes are in session.  I can’t stress enough the importance of this partnership and how beneficial it has been to both the school and city.

Crime and Arrests:

This chart tracks the more serious crimes against persons such as assault and abuse along with crimes against property such as burglary and theft.  While there has been a slight uptick in in the last three years these types of crimes trending down since 2006.  Increased construction activity has contributed to the upward trend.

Adel-Drimes-Per-Capita

This chart tracks the arrests each year.  The downward trend is reflective of the expectations I have communicated to the police chief.  If situations can be handled without taking someone into custody that’s the approach I prefer, however always deferring to the officer’s judgement.

Adel-Arrests


Fire Department

The Fire Department is fully funded and has the resources to “keep civilians safe”:

  • 25 volunteer firefighters is the most ever (three new firefighters moved to town this year)
  • New fire engine purchased in 2015
  • Fire equipment and firefighter gear is on regular replacement upgrade schedule

Compared to surrounding fire departments to cities of similar size the per capita ratio is second only to Carlisle indicating we are not “a very small fire department”:

Adel-Fire-Stats

I honor our public safety departments’ commitment and sacrifice to keep us safe.

Water, Sanitary Sewer and Storm Sewer Utilities

There has been much talk about Adel’s water since the softeners were taken off line in early June.  Speculation has been the growth has exceeded the ability to provide treated water to the community.  That is not the case.

Water Capacity and Daily Use – Our water plant has the capacity to pump 850,00 gallons per day (gpd) to users.  The water softeners on the other hand can only produce 600,000 gpd.

Average daily usage for all users throughout the year is between 400 and 450 gpd, about 50% of the pumping capacity  and 67% – 75% of the softener capacity.

During times of higher than normal temperatures and lower than normal precipitation causes water demand to increase.  Because the higher temps this summer coupled with the reduced rainfall created a “perfect storm” in terms of water demands.

Abnormally Dry Conditions – The following map from the Iowa Department of Natural Resources shows that Adel received between 25% and 50% of normal rainfall:

Here is a link to the Iowa DNR site listing all the Water Summary Updates (WSU)

http://www.iowadnr.gov/Environmental-Protection/Water-Quality/Water-Summary-Update

Abnormally Hot Conditions – And we all recall how our air conditioners were running constantly this summer.  We didn’t experience many, if any, temps over 100 degrees, but they were constantly in the high 80’s to lower 90’s.

The following graph shows the that water demand exceeded the softening capacity during the summer months.  You will also notice in September with lower temperatures and increased rainfall demand dropped to normal seasonal levels.  This graph shows with the dotted line data points why the softeners could not be turned on until the week of October 8th:

Adel Water Demand - Monthly Daily Average and Max 2017

State of Iowa Water Softening – As a point of reference regarding water softening, there are 1,079 water utilities like Adel in the state of Iowa.  133, or 12.3%, soften water for 1,2 million residents (38% ) of Iowa’s 3.13 million residents.  This means that 1.9 million Iowans (62%) have never had softened water delivered to them by their utility.

Softened water is something Adel citizens expect and I will make sure the softeners will never be taken off line again due to demand.

Meeting Future Water and Water Softening Demands – The city is working on two ways to increase softening capacity – expanding the softeners using the current technology or implementing reverse osmosis to compliment the current softening capabilities.  The city will look to use the most cost-effective method

In terms of the pumping capacity, to make sure we have enough water for our citizens, we are looking to partner with Xenia Water Utility as a resource for additional treated water when demand is high.

In the meantime, the Water Watch and Water Warning granted to the mayor by ordinance will be used to ensure we have plenty of treated, softened water for our citizens.

Planned Capital Improvements – Nearly three years ago the city began planning water, sanitary sewer and storm sewer utility improvements.  One of the first projects will be activating two new wells next year.  These wells will ensure the city has a reliable water source for many years to come.

The following list shows 15 planned projects totaling ~$38 million.  These improvements will ensure the city has sufficient water, sanitary sewer and storm sewer capacity for years to come.

Adel Future Water Sewer and Storm Sewer Projects

In summary, the City of Adel has been planning water, sanitary sewer and storm sewer project for nearly three years and plans to implement these capital projects over the next five to seven year period.

NOVEMBER 7th IS NOT THE TIME TO TAKE A CHANCE ON INEXPERIENCE.

Finances

 

The city has always been fiscally responsible.  Currently we are at 83.73% of our General Obligation bond debt capacity.

When we pay the June 1, 2018 principal payment and incorporate the new 1-1-17 FY 18-19 100% valuation starting on July 1, 2018, the City’s debt capacity will decrease to 71.81%.  This is below the 80% – 85% city council self-imposed debt limit.

The attached model assumes no new bonding needs using general obligation bonds:

Adel Debt Planning Model 10-10-17-Exhibit 1

For the debt service levy model, we have assumed conservatively that the backfill (state funds) will be eliminated in FY 18-19.  So if our taxable valuation increases in FY 19 and the City doesn’t need to sell any new general obligation debt, our model shows that the debt service levy could continue to decline if so desired by the City Council.

As a point of reference our debt service levy has been steadily declining from a high of $3.96 in FY 2007 – 2008 to today’s $2.29 levy, a 42% decrease.

And we are always looking for opportunities to refinance bonds when it makes sense.  We did this recently resulting in a gross savings of $169,000 or about $12,000 annually.

I will make sure the city remains fiscally responsible.

NOVEMBER 7th IS NOT THE TIME TO TAKE A CHANCE ON INEXPERIENCE.

Adel Growth and Financial Impact

Adel Growth and Financial Impact

These are my remarks during the public hearing at the Adel City Council meeting on Tuesday, October 10, 2017.  It covers population trends, modifications to the abatement program, the very positive financial impact to the city and other facts that put the abatement and Adel’s growth in perspective.

If you are new to town, or even a long time resident, the population information may surprise you.

Adel Population – Abatement – Revenue – Other Facts

As you read about this 2010 – 2017 time period, keep these numbers in mind:

  • $900,000
  • $542,000
  • $200,000
  • $493,000
  • Minus $1,394,736
  • 12 years

Population Trends

In 1990 Adel’s population was 3,304.  Between 1950 and 1990 Adel had grown by 1,505 residents.  There was a consistent 16% or better decade over decade growth averaging 376 new residents per decade.   Between 1980 and 1990 Adel’s pace of growth exceeded the cities of DeSoto, Van Meter, Waukee, Dallas Center and Perry.  Clive, Urbandale and West Des Moines had not yet made their way to Dallas County in any significant form.

During the decade of the 90s the country was in fairly good shape.  We enjoyed the fruits of the peace dividend with the end of the cold war and the country had a balanced budget for the first time since 1969.  Times were good.

However, the census from the year 2000 showed Adel only grew 131 people, a 4% growth rate.  From 1890 through 2000, of the eleven Adel censuses there was only one decade where growth was at a slower rate and that was during WWII in the 1940’s.  Adel grew at a faster rate during the Great Depression of the 1930s.  Even during the farm crisis of the 1980s, Adel grew at a rate four times faster than the 1990s.

For those who say we should let growth come naturally / organically, that was the approach the city took in 2000.  Highway 6 (Hickman Road) between Waukee and Adel was widened to four lanes during the latter part of the 1990s so starting in 2000 it would be easy for folks to discover Adel and the town would grow again like it did between the 50s and 80s.

So between 2000 and 2010 with the new four-lane highway opening and Dallas County beginning to brag about being the 10th fastest growing county in the country based on the rate of population increase, Adel picked up the pace of growth right?  This was not the case.

At a 16% growth rate we should have added 550 new citizens.  The census show less than half that.  The 7.2% growth (2000-2010) over the last 120 years (12 censuses) exceed only slower growth during WWII, The Great Depression, the 1990s, and by .9% beat the 1900-1910 decade.

An item of note about Adel’s growth from 2000 – 2010 was ADM’s student enrollment.  It was flat and at times declining.  This evidenced by the “Population by Age” detail in Adel’s 2010 census profile showing persons ages 5 to 17 declined by 25, from 744 to 719.

From 1980 – 1990 Adel was the fastest growing town in Dallas County.  This was until Dallas County became one of the growing counties in the country.

A closer look at the area’s population trends (Clive, Dallas Center, Perry, Urbandale, Van Meter, West Des Moines, and Waukee) between 1990 and 2010 show that all seven of these communities grew at a faster pace than Adel.  Of the 62,310 folks that moved to these communities, 378, or .61% selected Adel.

For two decades, 20 years, natural / organic growth was not doing it.  Adel’s potential customers / new citizens were selecting the competition in the surrounding towns.

The city began thinking of Adel as a product to sell.  A way to get “customers” to “buy” your product, or at least take a serious look at it, is to lower the price.  Once folks select Adel and build a home, they are customers for life.  Now the people who built the home may not be here for life, but the owners / occupants will be and they will be paying taxes.

The Abatement Program History

To get peoples’ attention Adel adopted an aggressive abatement program in 2011 where if folks built in 2011 they would not pay property taxes for seven years; built in 2012 no property taxes for five years; and built in 2013 no property taxes for three years.  There were ~70 buildable lots in Adel in 2011 and the city issued 26 building permits, four more than 2004, and two years before the national economic downturn.

Realizing we were not getting the bump we wanted in house permits, in March of 2012 the abatement program was changed to make 2012 seven years instead of five years of abated taxes and 2013 five years instead of three years.  In 2012 the city issued 27 building permits, one more than the previous year.

During the two year period (2011 & 2012) of no taxes for seven years the city issued 53 building permits, three more than the 50 issued during 2004-2005 period before the economic downturn in 2006.

At the end of 2012 seeing that the adjustment in March to the abatement program didn’t move the needle, the city council extended the “no property taxes for seven years” to construction during 2013, 2014, 2015 and 2016.  In 2013 47 building permits were issued and we were finally starting to see some real growth.

However, by June of 2014 the pace of building permits was down (only 41 building permits were issued all of 2014) so the city council extended “no property taxes for seven years” to 2025.  It was this action by the city council that really kick started the housing construction.  Developers made commitments and created a new inventory of lots to build on.

In 2015 119 building permits were issued and in 2016 138 building permits and in 2017 we are on pace to issue close to 150 building permits.

Growth Impact on Revenue

So what has this growth meant for the city?

Infrastructure and water / sewer fees – The developer / homeowner pays for all water and sewer infrastructure, streets, street lights and public improvements.  There is no cost to the existing taxpayers for these improvements.  When a homeowner moves in and starts using the city’s water and sewer utilities, he or she immediately starts paying water and sewer fees, as there is no abatement on these fees.

Permit and connection fees – When a home is built in Adel the owner pays on average $1,625 in building permit, water connection and sewer connection fees.  The permit fees are placed in the general fund and the connections fees go to the water and sewer utilities respectively.  To date the city has collected ~$900,000 in these fees

What have these fees meant to the taxpayers?  During the eight years (2005-2012) before the abatement program the total property taxes collected increased an average of 4.67% year over year.  The five years (2013-2017) since the abatement property would have impacted the tax rolls, taxes collected increased at a 1.35% increase year over year.   Thanks to the fee revenue from abated homeowners the city has been able to save the taxpayers $200,100 since the abatement program began.

This savings is also evidenced by the city’s audited financial statements where during the 2010 – 2011 fiscal year real estate taxes were 50% of the city’s revenue.  The 2015-2016 audited financial statements showed the city’s reliance on property taxes had dropped to 37.8%.

Local Option Sales Tax – The local option sales tax revenue has been positively impacted also.  The state’s original distribution to the city in 2011 was at a rate of $350,000 annually based on $35 million in sale.  At the end of the fiscal year 2017 the city has experienced a 43% increase in sales and has resulted in $542,000 more in local option sales tax than originally projected over a seven year period.  To date the city has received $2.8 million in local option sales tax revenue which has gone to pay down the debt on the Aquatic center and build reserves for the purchase of 30 acres of land for future parks and recreation use.  These 30 acres along with the 10 acres already purchased will make it Adel’s largest developed community park.

Road Use Tax (RUT) – Population was mentioned earlier and one downside of not growing is its impact on our Road Use Tax (RUT) revenue.  The State of Iowa uses the most recent census to distribute its gasoline tax to the cities.  These funds are used to maintain city streets.  Had Adel grown at the 16% rate during the 1990 – 2010 time periods, like it did the 40 years from 1950 – 1990, at the end of this decade we would have received an additional $1,394,736 in road use tax.  Adel lost these funds and will never get them back.

Because of the growth since the abatement, if there was no other growth in Adel between now and 2020, we would still see an additional $733,200 of RUT distributions in the next decade.

Other Facts

Residential assess values – In 2011 the average assessed value of existing homes in Adel was $138,000.  According to the assessor the average value for new homes built in Adel since the abatement program was adopted in 2011 is $319,500.  Over double the assessed value of existing homes.

From the Dallas County Assessor’s office the 2011 total assessed value of single family properties in Adel prior to the abatement program was $209,774,530.  The total assessed value of abated homes built through the end of 2016 equals $119,475,010.  A 57% increase on assessed property value in a five year period.

Debt Capacity – Adel’s debt capacity (5% of assessed value) before the abatement was $10,488,726.  Once these values pass through the abatement program and appear on the tax rolls, it will add $6,000,000 to the city’s bonding capacity, improving the city’s financial strength.

Reserve balances – For the city’s balance sheet the rule of thumb is to have 25% – 33% of the annual expenses on hand.  From the audited financial statements in 2010 – 2011 the city’s unrestricted cash balance was $70,463 or 6% of annual expenses, well short of a safe and sound balance.  The latest audited financial statement from 2015 – 2016 the city’s unrestricted cash balance was $563,265 or 28% of annual expenses.  Adel’s financial condition from a balance sheet standpoint is as strong as it has been in years.

Even with the accelerated growth since 2011 (we have grown 16.6% these first six years), Adel’s estimated population of 4,293 is 153 short of the 4,446 we would have been at the with 16% growth from 2000 – 2010.  Carrying the 16% growth rate between 2010 and 2020 our population would have reached 5,113.  Again, these population numbers are at the same growth rate Adel experienced over a 40 year period from 1950 – 1990.

If you remember anything from this information, remember this:

  • $900,000 in fees from new homes since 2011
  • $542,000 in additional local option sales tax revenue attributed to growth in Adel’s economy
  • $200,000 in taxes saved to those paying property taxes since the abatement began
  • $493,000 increase in cash reserves

The result from the growth is an annual $355,000 positive impact to the city.

To put the abatement and home values in perspective, the $138,000 average Adel home before the abatement would pay $987 annually ($14.30 / $1,000 in value).  The average abated home with the value of $319,500 will pay $2,285 annually.  In the 5.18 years the abated home pays taxes will equal what the non-abated home will pay over a 12 year period.

Over a 20 year period the average non-abated home will pay $19,740; and abated home over the same period will pay $29,705 or about $10,000 more (including the seven years of not paying taxes.)

All the city did was change its business model by swapping / forgoing property tax revenue for a larger amount of fee and local option sales tax revenue in the beginning with the guarantee of increased real estate tax revenue on the back end from the growth.  The city is essentially providing tax relief both on the front end, then on the back end, through increasing revenues, all related to growth.

I have been involved in city government for 30 years and from a growth and financial perspective, Adel has never been better.

Respectfully Submitted,
Jim Peters
925 S. 14th St.
Adel, IA  50003

NOVEMBER 7th IS NOT THE TIME TO TAKE A CHANCE ON INEXPERIENCE.

Streets

The city is always assessing it’s road conditions.  Historically paving projects have been difficult to pass due to resistance by property owners.  The need was never questioned but the allocation of costs was.

Around the 2004 time frame city council members Jeff Harsh and Steve Nichols lead an effort to update the schedule to distribute street improvement costs.  It has been very successful and we have improved existing streets under this plan.  In addition, through a series of public input meetings, the city made a commitment to keep the brick streets in and around the downtown square.  Those brick street improvements are evident today.

This year’s Main Street paving project is an example of the cost distribution plan and brick street preservation working as intended.  Not only were the streets improved during this project, but important storm water improvements were also made to mitigate the past storm water issues, especially those in the summer of 2015.

As part of regular city planning street committee is considering a five year paving plan to address the current and upcoming maintenance and new construction needs.  That plan will be shared when it is adopted.

NOVEMBER 7th IS NOT THE TIME TO TAKE A CHANCE ON INEXPERIENCE.

City Council – Mayor Forum

October 16, 2017, 6:30 pm at the ADM Middle School/High School Auditoruim

Want to learn more about the candidates running for City Council and Mayor?

Here is your opportunity.

Join the Adel Partners Chamber for a forum discussing the issues of Adel.

Joe Murphy, Senior VP of Government Relations and Public Policy at the Greater Des Moines Partnership will be our moderator.

Thank You, Chief McNeil

(An open letter to retiring Adel Police Chief, Jim McNeil )

On behalf of the city council, staff, and the citizens of Adel I would like to express my sincere appreciation and deepest sense of gratitude for your 29 years of dedicated service to the City of Adel.

Although you are departing while I am still in office, I have always told you that you would be my legacy. I can honestly say that during 24 years as mayor, hiring you as Chief of Police was the best decision I have ever made as measured by the positive impact your service has had on the city… Read More

Discover Adel Article

JimPeters-Alumni(Republished from the July 2011 Newsletter)

Jim Peters Mayor of Adel

A significant part of any community is it’s leadership. For over twenty years, Jim Peters has served Adel as councilman and Mayor.

We got a chance to visit with him and hear about his love for the community and his drive to remember ADM Alumni who gave their all.

With his trademark salt and pepper ponytail, suit and bow tie, he fits the image of a Mayor who has the community’s best interest at heart. Jim is quick to give an ear as he listens attentively to every side of an issue.

Jim is the third member of his family to have the name James Peters, his grandfather, also named James, was the mayor of Perry.

As a child, his parents moved to Adel to run a local drive-in. His first friend upon moving to Adel was Van Harden, who lived across the street… Read More