City of Dubuque Fiscal Year 2019 Recommended Budget as Amended Copyrighted
February 28, 2018
City of Dubuque Public Hearings # 1.
ITEM TITLE: City of Dubuque Fiscal Year 2019 Recommended Budget
SUMMARY: Proof of publication on notice of public hearing to consider
approval of the Fiscal Year 2019 Recommended Operating
Budget and Capital Improvement Program (July 1, 2018
through June 30, 2023)and the City Manager
recommending approval.
City Manager submitting correspondence addressing the
City Council's items for reconsideration.
Correspondence from the East Central Iowa Association of
Realtors in support of the Landlord Guarantee Program
improvement package proposed in the Housing and
Community Development recommended budget.
RESOLUTION Adopting the City of Dubuque Fiscal Year
2019 Annual Budget
RESOLUTION Adopting the City of Dubuque Five-Year
Capital Improvement Program
Public input will be taken on City departmental budgets in
the following order:
1 Information Services 16 Purchase of Services
2 City Attorney (Legal) 17 Park Division
3 City Manager 18 Recreation Division
4 City Council 19 Five Flags Civic
Center
5 City Clerk 20 Conference
Center/Grand River
Ctr.
6 Cable TV 21 Emergency
Management
7 Library 22 Emergency
Communications
8 Planning Services 23 Police Department
9 Finance Department 24 Fire Department
10 Human Rights 25 Building Services
Department
11 Airport 26 Water Department
12 Health Services 27 Water& Resource
Recovery Center
13 Housing/Community 28 Public Works
Devel. Department
14 Transportation 29 Engineering
Services Department
15 Economic 30 Capital Improvement
Development Program
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Conduct Public Hearing
ATTACHMENTS:
Description Type
FY19 Budget Recommendation Public Hearing City Manager Memo
Population by County Supporting Documentation
FY19 City Manager's Budget Transmittal Message Supporting Documentation
2/5/19
East Central Association of Realtors Correspondence Supporting Documentation
Fiscal Year 2019 Operating Budget Resolution Resolutions
FY19 Capital Budget Adoption Resolution Resolutions
Proof of Publication Supporting Documentation
Dubuque
THE CITY OF Itxtbri
DUB E µ
Aserip
' ii,
Masterpiece on the Mississippi 2007.2012
2013.2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2019 Budget Recommendation Public Hearing
DATE: February 28, 2018
The State of Iowa is underperforming in critical areas. It is very concerning that only
local governments (including cities, counties, school districts, and community colleges)
are taking action to address these challenges. It is ironic and troubling that we continue
to hear about state legislation and rules that cut revenues available to local
governments. Proposed State-level legislation and rules to reduce sales tax revenue,
decrease property tax revenues, eliminate the promise to backfill past property tax
reductions with state revenues, severely restrict the use of Tax Increment Financing
(the only viable economic tool used by local governments to support growth in business
investment and jobs), and to eliminate or reduce Historic Tax Credits for building
rehabilitation all threaten the ability of local governments to respond to local issues.
Information recently released by the State of Iowa Legislative Services Agency shows
the change in population in counties across Iowa. It is a frightening trend that must
serve as a wake-up call for all Iowans. If we want our children and grandchildren to be
able to stay in Iowa and be successful, we must all work to make Iowa a place of
choice, not only for businesses but also the workforce they will need to thrive. We
should not be considering the elimination of economic development and community
rehabilitation tools, but instead exploring how we can improve those tools to create
more growth in jobs and population and to make the incentives more competitive. We
should not be pursuing ways to starve cities, counties, and school districts of the funds
they need. We should instead be looking to diversify sources of revenues so local
governments can invest in the future for the benefit of the citizens they serve, those
here today and those we hope to be here in the future.
Iowa Percent Change in Population by County 2010-2016
State of Iowa +2.9% (88,338)
There are 99 counties in the state of Iowa. Only 27 (27%) showed any growth at all
from 2010 to 2016. If you only consider counties that had at least 1% growth and have
a population of 25,000 or more, only 10 (10%) of the 99 counties met these criteria and
four of them are in the Des Moines/Ames corridor. In fact, the Des Moines/Ames
corridor accounted for 74,081 (84%) of the 88,338 of the state-wide population growth.
Even some of the counties that include some of Iowa's larger cities did not meet this
criteria.
COUNTY % Population Change: 2010-2016
Woodbury (Sioux City) +0.6%
Muscatine (Muscatine) +0.5%
Pottawattamie (Council Bluffs) +0.5%
Jasper (Newton) -0.4%
Wapello (Ottumwa) -1 .8%
Cerro Gordo (Mason City) -2.4%
Webster (Fort Dodge) -3.3%
Clinton (Clinton) -3.7%
Fortunately, Dubuque County showed a growth of 3.4%, achieving a population of
97,003.
The picture is just as discouraging when you look at the Estimated Population Migration
from 2010 to 2016. This measurement represents the number of people who have
moved to these counties vs. the number of people who have left. The State of Iowa
experienced a net inflow of 24,643 people during that time. Only 20 (20%) of the state's
99 counties showed a net migration inflow. Six (30%) of those 20 counties were
concentrated in the Des Moines/Ames Corridor.
If you only consider counties that had a net positive change of at least 1 ,000 people,
only 9 (9%) of the 99 counties met that criteria. Fortunately, Dubuque County is one
of those nine with a net migration increase of 1,389.
I believe the facts presented in the January 29, 2018, Fiscal Year 2019 Budget
Recommendation memo make a strong case that, while local businesses are identifying
the lack of available workforce as their top impediment to growth, a skilled workforce is
imperative to the future of Dubuque.
Recently, legislation was introduced in the Iowa Senate to eliminate the promised
property tax backfill payments to cities, counties, and school districts. This would cost
the City of Dubuque $344,233 in revenues in Fiscal Year 2019, $688,465 in Fiscal
2020, and $1 ,032,698 in Fiscal Year 2021 and each year beyond. The legislation would
also reduce funding for the State of Iowa Historic Tax Credit Program. This is a
significant source of financing for private developers across the state as they renovate
old buildings and repurpose them, like the projects in the Historic Millwork District that
are creating commercial and retail space and hundreds of apartments for workforce
housing.
2
A 2018 report just released by the Iowa Business Council, which represents many of the
state's largest employers, should be a great cause of concern for the State of Iowa.
When compared with how Iowa ranks among all 50 states in key metrics comparing the
year 2000 with 2017, it is clear that Iowa needs to do more, not less, to support
economic development, job growth, and workforce development:
2000 Ranking 2017 Ranking
Median Household Income 21 26
Gross State Product 29 30
8th Grade Reading Proficiency 11 17
8th Grade Math Proficiency 12 14
Education Attainment High School 9 11
Education Attachment Bachelor Degree 22 34
Gallup-Healthways Well-Being Index 7 19
Two bright spots in the analysis were:
2000 Ranking 2017 Ranking
State Public-Pension Funded Ratio 29 13
State Business Tax Climate 46 40
Despite the desire of some state legislators to eliminate the backfill in as little as two
years, I still stand by my original property tax recommendation for FY2019:
% Change $ Change
Property Tax Rate -2.71 % -$0.29
Average Residential Payment +2.00% +$15.11
Average Commercial Payment -3.84% -$126.04
Average Industrial Payment -3.46% -$170.38
Average Multi-Residential Payment -7.13% -$143.71
Should they reduce or eliminate the backfill in Fiscal Year 2019, I will recommend some
expenditure reductions to bridge the funding issue into the Fiscal Year 2020 budget
process, where it can be dealt with more strategically.
Since the budget recommendation was originally submitted, the City received a higher
than expected Fiscal Year 2018 (current year) distribution payment from the DRA, but
we are also seeing reduced projected Dubuque Racing Association lease revenues, a
recent spike in experienced health care costs, increased cost in Fire overtime and other
medical, and continued pressure on the local option sales tax. None of this translates
into a change in the Fiscal Year 2019 budget recommendation, with the continued intent
to be able to contribute $1 ,050,000 to the general fund reserves.
During the budget hearings, Council Members expressed an interest in adding $25,000
to the Airport marketing budget. Should this be funded, it would have the following
impact to the property tax rate and different classes of property:
3
Original With $25,000
Recommendation Increase
Property Tax Rate -2.71 %/-$0.29 -2.62%/-$0.28
Average Residential Payment +2.00%/+$15.11 +2.10%/+$15.84
Average Commercial Payment -3.84%/-$126.04 -3.75%/-$123.06
Average Industrial Payment -3.46%/-$170.38 -3.37%/-$165.90
Average Multi-Residential Payment -7.13%/-$143.71 -7.04%/-$141 .94
During the budget hearings, Council Members had expressed an interest in funding the
$3,000 Library request for three regional author visits each year. Should this be funded,
the recommended property tax rate would increase 0.01% ($0.001) and the average
residential taxpayer would have an increase of 0.01% (+$0.09) from recommended.
A majority of the City Council wanted to consider retaining the Maintenance Electrician
position at the Water and Resource Recovery Center. While I still support the
recommendation from Water and Resource Recovery Center Manager Willie O'Brien to
eliminate the Maintenance Electrician position, and I believe this is the best way to
optimize plant operations, it is clear that a majority of the City Council does not support
this plan.
The combination of the added cost ($83,281) of the Maintenance Electrician position
and the reduction of$42,000 in the contract services request would equate to an
increase in the sanitary sewer fee from 3% to 3.41%.
One of the other positions eliminated in this staffing plan was a Plant Operator position.
There was a person in that position and that was recommended to be eliminated as of
January 1 , 2019. That person will be leaving the position next month to take a position
in Public Works. Since that position is now vacant, it will be eliminated as of July 1 ,
2018. This creates an extra six months of savings equal to $39,000. This $39,000
savings brings the sanitary sewer fee increase down from 3.41 % to 3.08'%.
By keeping the Maintenance Electrician position, there is also an $8,000 reduction in
the Supplies and Services Sanitary Sewer Maintenance budget in Engineering, which
also is paid from the Sanitary Sewer Fund. Elimination of this brings the fee increase
down to 3.03%
BRD is the firm installing and operating the equipment at the Water and Resource
Recovery Center to further clean the methane gas generated through the anaerobic
digestion process at the new facility. The resulting biogas (BioCNG) can be sold to the
Black Hills Energy pipeline and will generate Renewable Identification Number (RIN)
revenue from the Federal Renewable Fuel Standard program.
I contacted BRD and they agreed to amend their agreement to operate at the Water and
Resource Recovery Center. The current agreement says that BRD will reimburse the
City for any services BRD needs from City Maintenance staff. BRD will have their own
4
maintenance contract, but will need some City assistance. The City estimated $6,000 in
revenue in Fiscal Year 2019. BRD has agreed to guarantee the City $3,000 a month in
revenue through June 30, 2019. This would add $30,000 to the Fiscal Year 2019
revenue stream. The $30,000 of BRD revenue will help offset $25,000 of additional staff
expense related to the engineering of BRD operation. In addition, the sanitary sewer
rate increase must be no lower than 3% in order to fund the sanitary sewer reserve. The
additional BRD revenue will not impact the Fiscal Year 2019 budget recommendation.
I respectfully recommend Mayor and City Council approval of the original January 29,
2018 budget recommendation. Should the City Council choose to make any
amendments related to Airport Marketing, Library Regional Author visits or the
Maintenance Electrician position, I respectfully recommend they be made consistent
with the information in this memorandum.
,CAilvf,41 k't/1/711/4<,-L,
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
5
Population by County - 2016 Estimate
Total Population 3,134,693
LYON OSCEOLA DICKINSON EMMET KOSSUTH I WINNEBAGO WORTH MNCHELL HOWARD WNNESHEK MLA MAKE Iowa Population
11,754 6,064 17,243 9,658 10,631 7,572 10,763 9,332
rt
I 20,561 13,884
Roux II OBREN CLAY PALO ALTO 15,114 1 HANCOCK CERRO GORDO
34,898 14,020 16,333 9,047 10,835 FLOYD CHICKASAW Estimated Population
15,873 12,023
FAYETTE CLAYTON- I 13,693-10,000
PLYMOUTH CHEROKEE BUENA VISTA POCAHONTAS HUIIBOLDT WRIGHT FRANKLIN BUTLER BREMER 20,054 17591 110,001 -12,500
25200 11,508 20,332 6,886 9,487 12,779 10,170 14,791 24,798 l-1 12,501 -17,500
A R
BLACK HAWK I BULHANAN DELAWARE IM 17,501 -35,000
DA 1 SAC CALHOUN I HAM ETON HARDIN URUNOY :Waterloo 17,327 Dubuque -35,001 -474,045
Sioux 20,992
6,985 9,876 9,846 15,076 17,226 12,313 I 2,904
City ® Major Cities
TAMA BENTON JOKES JACKSON
MONONA CRALVFORD CARROLL GREENE BOONE '''9IALL 19,472
8,898 16,940 20,437 9,011 26,532 00 40,31 17,319 25,699 I``1,6 20,439
.. ce' Top Five Counties:
,090 RatcEDAR 1. Polk: 474,045
HARRISON SHELBY AUDUBON GUTHRE - JASPER POWESHIEK IOWA SON 18,454 2. Linn: 221,661
Ankeny 46 3. Scott: 172,170
14,149 11,800 5,678 10,625 84,516 474,045 36,708 18,533 16,311
Des Moines Towa C? 4. Johnson: 146,547
West Des Moines - - ,enport
,FOTTAWArWM CASS ARAB MADISON WARREN MARION DAHASKA KEOKUK WASHINGTON 5. Black Hawk: 132,904
93,582 13,157 7,092 15,848 49,691 33,189 22,181 10.119 22,281
LOUISA , Top Five Cities:
11,14 ' 1. Des Moines: 215,472
MLLS ;MONTGOMERY'ADAMS UNION CLARKE LUCAS IJONROE WAPELLO JEFFERSON HENRY 19,773 2. Cedar Rapids: 131,127
14,972 10,225 3,693 12,420 9,309 8,647 7,870 34,982 18,090 DESMORES
L 3. Davenport: 102,612
FREMONT PAGE TAYLOR RINGGOLD DECATUR WAYNE APPANOOSE DAVIS VAN BUREN 4. Sioux City: 82,872
6,950 15,391 6,216 5,068 8,141 6,452 12,462 8,860 7,271 LEE 5. Iowa City: 74,398
34,615
Percent Change in Population - 2010-2016 Statewide:
LYON DICKINSON KOSSUTH WNNEBAGO WORTH MITCHELL REWARD WNNESHIEK ALLAMAKE.- +2.9%
1.5% 3.5% -2.2% -0.3% -0.1% -2.4% Percent Change
-2.4% -3.1%
SIOUX O'BRIEN CLAY PALOALTO -2.8% HANCOCK CERRO GORDO -
FLOYD. CHICKASAW
3-3% +88,338
3.5% -2.6% -2.0% -4.0% d.5% 2.4% 2.6% 3.3%
FAYETTE CLAYTON
' PLYMOUTH CHEROKEE BUENA VISTA HUMBOLDT WRIGHT FRANKLIN ` BUTLER BREMER 4-0% 3.0% Population Change
0.9% d-7% 0.4% 3.3% -3.4% .4.8% -0.5% 2.2%
WEBSTER BLACK HAWK BUCHANAN DELAWARE DUBUQUE � Percent Change
OODBURY DA SAC CALHOUN HAMILTON IIARDIN GRUNDY Wat0 o oz% 2.S% 3.6%'fir Dubuque --8.3%--5.0%
Sioux 0.6% -1.5% -4.6% 1.8% 3-3% 3.8% -1.8% -1.1% 7.4%
City -4.9%--1.0%
ITAMA BENTON UNN JONES JACKSON-1.9% -0.9%-1.0%
MONONA CRAWFORD CARR°LL GREENE BOON= MARSHALL 4.9% -1.0%
-3.7% -0.9% -1.8% -3.5% 0.9% - -0.8% -2.5% -1.4% Cedar oN, I 11.1%-5.0%
Rapid? CLINTON 5.1%-27.8%
CEDAR 3.7% -
SHELBY GUTHRE (JASPER POWESHEK DWA -0.2� 'at Major Cities
-3.0% 3.0% y -0.4% -2.0% -0.3% SCOTT
a4'o i
West D Des:- nines AIUSCATINE A ienport
•.:
POTTOWATTARIE MADISON MARION MAHASKA KEOKUK WASMNGTON 0.5% Top Five Actual
0.5% 1.1% -,5% -0.4% -0.9% 3.7% 2.7% Change by County.
LOUISA 1. Polk: 43,405
Council Bluffs -2.2%
2. Dallas: 18,381
MILLS MONTGOMERY UNION CLARKE LUCAS htONROE WAPELLO HENRY
-0.6% .4.8% -0.9% 0.2% -2.8% -1.3% -1.8% DESMENES 3. Johnson: 15,665
-1.8% 4. Linn: 10,435
-1.S% Top Five Actual
PAGE TAYLOR MNGGOLD DECATUR MUNE APPANOOSE SASS VAN BUREN 5. Scott: 7,250
-3.4% -1.6% -1.2% 3.7% 0.8% -3.3% 1.2% 3.9% LEE Change by City:
, 1 3.5% 1. Ankeny: 13,045 Bottom Five
2. Des Moines: Actual Change by County:
12,039 99. Clinton: -1,807
3. West Des Moines: 98. Lee: -1,247
7,951 97. Webster: -1,244
4. Ames: 7,226 96. Cerro Gordo: -1,081
5. Iowa City: 6,536 95. Fayette: -826
Sources: U.S.Census Bureau, 2016 Population Estimate; LSA calculations
LSA Staff Contact: Adam Broich(515.281.8223)adam.broich@legis.iowa.gov LSA
LEGISLATIVE
SERVICES AGENCY
Serving the Iowa Legislature
Estimated Population Migration - April 1 , 2010 to July 1 , 2016
LYON OSCEOLA 8308508 'EMAET KOSSUTH VAtf+EBAGO IVO RTH MfC1ELL IStWMD WNtESHEK ALL4J4(EE
Dom:-168 Dont-439 Dont 747 Dom:-654 Dom:-193 Dorn 29
Irrt:14 Int:27 Int:37 Int:73 Int:0 Int;4 Dom:-14 Dom:-316
Net:-154 Nd:-412 Net:784 Net:-581 Net:-193 Net:33 Int:39 Int;211 Dorte-20433 Dont:-618
Dont-282 - Net:25 Net:-296 Int:-413 Int:97
SDUX 'O'Bt8EN CLAY PALO ALTO Int:24 HANCOCK CERRO GORDO- -
Net: Net:-521
Dont-796 Dom-336 Dont-363 Dom:-306 Nd:-2W Dom:-390 Dom:-1,162 FLOTD
CHICKASAW
Int:381 Int:61 Int:16 Int:75 Int:17
Int:233 Dom:-403 Dom:-354
Nd:-415 Nd:-275 Nd:-347 Net:-231 Net:-373 Net:-929 Int;-5 Int:-1 FAYETTE CLAYTON
Nd:-408 Net:-355
Done-683 Done-547
KPLfl4OUIH CHEROKEE BUENAVISTA POCAHOMAS WEIGHT FRNKDN SURER Int:110 lot:38
� 6 �82 Nd:-573 Net:-509
Dom:-144 Dont-378 Dorn:-1.169 Dam:-315 Int:4 Dom:-391 Done-551 Dont 8 Int:154
Int:121 Int:2 Int:445 Irrt:14 Nd:-242 Int:46 Int:8 Int:58 Net:236
Nd:-23 Net:-376 Net:-724 Net:-301 Net:-345 Net:-543 Net:66
tirtIE
BSTER -ri BLACKHall,BUCHANAN DELAWARE DUBUQUE
WOODBUtY DA SAC LCALHOU+ H4JLTON HARDN GRONDY DOM-2,90) Dom:-490 Done-665 Dern:780
Done-4336 Dom:-39 Dont-273 Dont-1W Dint;Zyg 1 Dorn:-738'Done-137 Dom:-166' Int 1,594 _ Int:31 Int:15 Irtt:609
Int:1,361 Int:4 Int:0 lot:9 Net:-1,152 lot:47 Int:76 Int:6 Net.-1,306 Net:-459 I Net:-650 Net:t389
Nd:-'1,975 Net:-35 Nd:-273 Net:-100 Net:-691 Net:-61 Net:-160
TAME BEtOON Ut1+ JONES JACKSON
MOIP3ILA CRANFOPD CARRDLL GREEfE WOW STORY MARSHALL Dom:-249 Dom:-256
DOM-567 Dom:-792 Dom:1,714 Int:47 Int:12
? Dont 3 Dont-763 Dont-511 Dom:-217 Dont 223 Dom:22 Dom -1598 Int:28 lot:47 lot:2,062 Net:-202 Net:-244
Int:15 Int:189 Int:21 Int:14 Int:0 Int:4,836 Int 867 Net:-539 Net:-745 Net:3,776
'al- Nd:18 Nd:-574 Net:-490 Net:-203 Nd:223 Net 4,858 Net -731
Dorn-2,171
^_• CEDAR Int:178
HAJaltSON SIELBY ADWBON GUTHRIE DALLAS POW JASPER POIVESHEK IOWA JON+SON Dom:-92 Net:-1,993
Dont-327 Dom:-182 Done 11,526 Dorn 13,223 Done-406 Dont-376 Dorn-119 Int:35
Done 2 818 Net:-57
Dorn:-617 Dom-346 Int:5 Int:24 Int:1,579 Int:7,852 Int:43 Int:267 lot:-6 Int:��3 SCDTr
Int:0 Int:122 1Net:-322 Net:-158 Net:13,105 Net:21,075 Net:-363 Nd:-109 Net:-125 Nd:8,481 Done 1,238
Nei:-617 Net:-224 Int-1244
_ MOSCNME Net ,482
POTTAW4TAt1E CASS •MAR MADISON WARREN 1U100N T MAHASKA MOKUKfOn1
DontDone-1584 Dom:-522 Dom:-357 Done 14 Dom:2,285 Done-419 Done-637 Dortt-48 :150 1 Nd:-
Int:24 Int:9 Int:0 lot:35 Int:207 Int:95 lot:67 Int:6 40
Nd:-1,300 Net:-513 Net:-357 Net:49 Net:2,492 Net:-324 Net:-570 Nd:-476 190 1 LOUSA
Dortt- Net Migration
Int:19
MLLS MONTGOMERY MMS UNION CLA.RKE LUCAS MOtROE WAPELLO JEFHEtRy Nd:-444 Population
Dom:-194 Dont-321 Dont-289 Dorn:-82 Dont-109 Dorn:-262 Dont-29 Dom:-1,182 Dont-338 Dorn:-521 DES moms Change
Int:3 Int:11 Int:0 Int:54 Int:6 Int:43 Ort:13 Int:436 Int:1,661 lot:48
Net:-191 Nd:-310 Nd:-289 Net:-28 Net: Dom:-759
:-103 Net:-219 Nd:-16 Net:-746 Nd:1,323 Net:-472Int:175 ® 2,975 1,000
FREMOtNT PAGE TAYLOR PoN+GGOLD DEMUR VIAYNE APPANODSE DAVN V4+BUREN Net:-606
Dom:-368 Dont-375 Dont-175 Dom:76 Dorn-363 Dont 24 Dont-264 Dom:-244 Dont-297 -999--500
Int:11 Int:64 Int:47 Int:10 Int:48 Int:6 Int:14 Int:0 Int:1
Net:-357 Net:-311 Nd:-128 Net:86 Net:-315 Nd:30 Nd:-250 Net:-244 Nd:-296 -499-0
3
1 -500
501- 1,000
Note: Top figure represents the annual inflow of domestic population; middle figure represents the annual
international inflow; and bottom figure represents the sum of the domestic and international inflow and outflow, MI 1,001 - 21,075
estimated between April 1, 2010 and July 1, 2016.
Statewide Estimated Statewide Estimated Highest Domestic Net Migration Gain - 2015-2016
Five-Year Change-2010-2016: One-Year Change-2015-2016: -
Domestic Change: -10,683 Domestic Change: -3,392 Illinois [ 5,407
International Change: +35,326 International Change: +6,336 -
Net Migration Change: +24,643 Net Migration Change: +2,944 Minnesota AIL IMI 2,304
igwer of me end of the nor
iodh:Oie net popinor On change
North Carolina 1,275
1.
Top States for Iowa Movers - 2015-2016 ■Moving from Iowa
Nebraska 949 ■Movingto Iowa
New Jersey 1 910
Illinois 5,407
miii0 5,000 10,003 15,030 20,003
Nebraska . 949 Figures at the end of the bar Highest Domestic Net Migration Loss-2015-2016
indicate net population change
Florida -0,881
Missouri 111 710 ■Moving from Iowa
Texas _um Awes al the end of',mbar
■Moving to Iowa M6mle nel popub Von change
Texas -3,163 South Dakota -1,695 ■Moving from Iowa
■Moving to Iowa
California -1,446
Florida -4,881
e r Georgia -1,257
0 5,000 10,000 15,000 20,000
0 5,000 10,000 15,000 20,000
Sources: U.S. Census Bureau,Estimates of the Components of Resident Population Change,LSA calculations .111
LSA Staff Contact: Adam Broich (515.281.8223) adam.broich@leais.iowa.gov 1-/S..& 2
LEGISLATIVE
SERVICES AGENCY
Serving the Iowa Jtgisleture
Dubuque
THE CITY OF Dubuque
All-America City
DUB E �.
' 1111.1
Masterpiece on the Mississippi 2007-2012
2013.2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2019 Budget Recommendation
DATE: January 29, 2018
It is my goal that the Fiscal Year 2019 budget recommendation will reflect the City Vision and
Mission Statements and be responsive to the goals and priorities established by the Mayor and
City Council. I am pleased to report that the Fiscal Year 2019 budget recommendation is
consistent with the property tax rate decrease of 2.71% approved as part of the Budget
Guidelines by the City Council on December 18, 2017. This translates into the following:
% Change $ Change
Property Tax Rate -2.71% -$0.29
Average Residential Payment +2.00% +$15.11
Average Commercial Payment -3.84% -$126.04
Average Industrial Property -3.46% -$170.38
Average Multi-Residential Property -7.13% -$143.71
The next five years and beyond will see structural changes in the world economy the likes of
which have not been seen since the early 1900s when the world faced the industrial revolution.
The changes in technology, communications, energy, and health care will transform the world
economy and our daily lives. There will be winners and losers in this process. It is our job to
make sure Dubuque is a winner.
A quick internet search will lead you to numerous experts who will make this same point about
the current and upcoming pace of change. The smartphone is a perfect example. The Apple
iPhone has just reached its 10th anniversary. There are now 2.32 billion smartphones being
used in the world, according to Statista.com. On January 12, 2018, General Motors filed with the
National Transportation Safety Board to sell the first commercially available fully self-driving car
(with no driver assist instruments like a steering wheel) beginning in 2019.
In June 2016, Dr. Robert M. Goldman made some predictions about what lies ahead
(attachment I). He said "in 1998, Kodak had 170,000 employees and sold 85% of all photo
-1-
paper worldwide. Within just a few years, their business model disappeared and they went
bankrupt. What happened to Kodak will happen in a lot of industries in the next 10 years - and
most people don't see it coming." He said "software will disrupt most traditional industries in the
next 5-10 years," making the point that "Uber is just a software tool, they don't own any cars,
and are now the biggest taxi company in the world. Airbnb is now the biggest hotel company in
the world, although they don't own any properties." In reference to future jobs, he said "70-80%
of jobs will disappear in the next 20 years. There will be a lot of new jobs, but it is not clear if
there will be enough new jobs in such a small time."
That leads to the biggest challenge facing the United States and Dubuque. There is intense
competition for jobs, but most importantly, a workforce with the necessary skills to do those jobs.
According to the Dallas Federal Reserve Chairman Robert Kaplan, 50% of all businesses
nationally say they cannot find enough skilled workers. The Federal Reserve Beige Book states,
"Reports of tightness in the labor market were widespread. Most Districts reported employers
were having difficulties finding qualified workers across various skill levels, and several Districts
reported that an inability to find workers with the required skills was a key factor restraining
hiring plans." The Beige Book for the Federal Reserve Chicago District reports, "Contacts
continue to indicate that the labor market was tight and reported difficulty filling positions at all
levels. A manufacturing firm reported turning down business because it was unable to find
qualified workers." Locally, a January 26, 2018 article in the Telegraph Herald about Dyersville
Die Cast said, "...the company has either turned down or been forced to let go of about $40
million worth of work since 2005 because of an inability to find workers."
According to the Bureau of Labor Statistics, in November 2017, there were 5.9 million job
openings with U.S. businesses. Not only do all those vacancies exist, but 5.5 million people
were hired for jobs and 5.2 million people left a job in November 2017, meaning there is
tremendous competition for those that already have a job. In November 2008, there were
almost seven unemployed persons per job opening and in November 2017, there was about one
unemployed person per job opening. The national unemployment rate at just over 4% is less
than half what it was ten years ago. The January 10, 2018, Telegraph Herald reported that,
"Economists forecast that hiring might slow this year as businesses struggle to find enough
qualified workers."
Fortune Magazine reports: "The war for talent that obsesses tech companies is intensifying and
is about to spread economywide. After almost nine years of mostly sluggish expansion, the U.S.
economy has shifted into a higher gear and is creating jobs at a record pace. Forecasters are
highly confident of the coming boom because they're looking at simple economics. About 6
million jobs are open at U.S. companies, near an all-time high. Yet employers are filling jobs at
the slowest rate in three years, unable to sign the employees they need as more people find
work and stop looking. The Fed revised its full-employment estimate down to 4.6% last year, by
far the lowest ever, but with unemployment now well below even that, relatively few people
seeking a job are unable to find one. And that's in the economy overall. Among knowledge
workers, managers, and other businesspeople, unemployment is far lower. For workers with a
bachelor's degree or more, the rate is just 2.1 %. In management occupations it's 2%, and within
that category, unemployment in "business and financial occupations" as measured by the
Bureau of Labor Statistics, is a near-invisible 1 .7%, equaling the lowest unemployment rate
among all job classifications economywide."
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In November 2017, the unemployment rate in Iowa was 3.5% and in Dubuque it was 2.4%. On
January 12, 2018, Iowa Lt. Governor Gregg reported that there were 58,348 job openings
posted on the state job website.
The five-year campaign that is just being started by the Greater Dubuque Development
Corporation titled, "Greater Dubuque 2022," has the following goals:
• Grow the number of jobs from the current 60,600 to 64,000
• Increase median household income from the current $56,154 to $60,000
• $800 million in commercial and residential construction
• Grow the population of Dubuque County from the current 97,003 to 100,000
Much work needs to be done to make this happen.
In my discussions with the Greater Dubuque Development Corporation, they have concerns that
the area has hit a wall as far as the available skilled workforce. This will make it a challenge for
existing companies who want to replace retiring workers or expand their operations and it will
make it more difficult to recruit new businesses. As reported in the January 14, 2018, Telegraph
Herald, Executive Director of the Grant County Wisconsin Economic Development Corporation
Ron Brisbois reported, "I have talked to multiple companies in Grant County who are turning
down contracts, they are turning down extra revenue, and they are doing so because the
workforce they need is not available." As an example, the Telegraph Herald goes on further to
say, "Each year, there are 245 openings for truck driver positions. However, only 34 county
residents are completing the necessary training to fill such vacancies annually."
A recent Julien's Journal article by Greater Dubuque Development Corporation Vice-President of
Workforce Solutions Kristen Dietzel wrote:
"On December 1 , 2017, Greater Dubuque Development released its 2017
Regional Skills Gap Analysis in partnership with Northeast Iowa Community
College. The purpose of the Skills Gap Analysis is to provide the community with
accurate information on projected workforce by occupation, as well as solutions in
place to address challenges and opportunities to do more. The report was
compiled through one of the most comprehensive workforce analytics tools on the
market, EMSI Analyst.
EMSI forecasts that in the next ten years, without intervention, the Greater
Dubuque Area (Dubuque and its six contiguous counties) will experience a decline
of working age population of approximately 6% and job growth of approximately
8%, resulting in a reduced surplus of available workforce. To break it down further:
• Today we have roughly 54,000 more working age people than jobs in the
region.
• Currently about 80% of those individuals are in the labor force, leaving a
labor force surplus of approximately 20,000 workers.
• In 2027, however, we are projected to have a surplus of only 2,776 workers,
assuming the labor force participation rate of the working age population
holds steady.
The report also highlights the top 75 occupations in the Dubuque Area economy
based on 2017 employment levels. These top jobs include a mix of low, middle,
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and high skill careers, with most jobs requiring some post-secondary training, but
not necessarily a four-year degree. This is consistent with forecasted jobs
available in our economy: by 2025, it is estimated that 68% of the jobs will require
more than a high school diploma for employees to do the job. The bottom line:
while we can expect approximately 15,000 openings a year in the region, most of
that will be turnover. Of the approximately 900 new jobs expected annually,
roughly 600 will be skilled jobs that we can address shortages of through
education and training, as well as recruitment of skilled professionals. With more
than 5,000 graduates a year at our regional institutions of higher education, how
can we explain the skills shortage our companies face? A few factors contribute,
including:
• Misalignment of supply (our graduates) and demand (our jobs);
• Out migration of graduates to Des Moines, Madison, Twin Cities, Chicago,
and other metros;
• Challenges recruiting out of area talent;
• Challenges with hiring recent graduates;
• The growing "gig economy," now considered to be the third largest job
sector nationally and growing quickly."
It is incumbent on Dubuque to make itself a community of choice where those already
here want to stay (like our children, grandchildren, and those that come here for a college
education) and those not yet here want to come. It is also important to create
opportunities for everyone, but especially the unemployed and underemployed, to obtain
the necessary job skills to be qualified for the jobs that are being created. Recognizing
the increasing diversity of our workforce, Inclusive Dubuque is critical to Dubuque's
future success.
There are some rays of hope.
1 . In January 13, 2018, a Market Watch article reported the following, "After at least two
decades in which more people were entering retirement than into the workforce, the tide
is turning. For the next two decades, it will be just the reverse."
2. There are 552,059 college students (undergraduate, graduate, and continuing education)
within a 100-mile radius of Dubuque and 64,000 in just the tri-state area.
3. Automation will make companies more efficient.
4. The work ethic and company loyalty reputation for people from this area are legendary
and known far and near.
Now, how does Dubuque succeed and make a community of choice for the workforce that is so
desperately needed? One of the most important responses is to participate in partnerships in
response to the Imagine Dubuque 2017 Comprehensive Plan and the 2037 Call to Action to
make Dubuque a more Viable, Livable and Equitable Community. A year of community outreach
produced over 12,500 ideas from over 6,000 people from all sectors of Dubuque. This is the
City roadmap for the next 20 years as it replaces the 1995 Comprehensive Plan, which replaced
the 1936 Comprehensive Plan.
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I will ask again, how do we succeed and make Dubuque a community of choice for the
workforce that is so desperately needed? Participate in partnerships to implement the City's
Vision, Mission, Goals, and Priorities developed annually by the Mayor and City Council.
2032 VISION STATEMENT
Dubuque 2032 is a sustainable and resilient city and an inclusive and equitable community.
Dubuque 2032 has preserved our Masterpiece on the Mississippi, has a strong diverse economy
and expanding connectivity. Our residents experience healthy living and active lifestyles; have
choices of quality, livable neighborhoods; have an abundance of fun things to do; and are
engaged in the community.
CITY MISSION STATEMENT
Dubuque city government is progressive and financially sound with residents receiving value for
their tax dollars and achieving goals through partnerships. Dubuque city government's mission
is to deliver excellent municipal services that support urban living; contribute to an equitable,
sustainable city; plan for the community's future; and facilitate access to critical human services.
CITY OF DUBUQUE GOALS 2022
• Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity
• Vibrant Community: Healthy and Safe
• Livable Neighborhoods and Housing: Great Place to Live
• Financially Responsible, High-Performance City Organization: Sustainable, Equitable,
and Effective Service Delivery
• Sustainable Environment: Preserving and Enhancing Natural Resources
• Partnerships for a Better Dubuque: Building Our Community that is Viable, Livable,
and Equitable
• Diverse Arts, Culture, Parks, and Recreation: Experiences and Activities
• Connected Community: Equitable Transportation, Technology Infrastructure, and
Mobility
POLICY AGENDA items are issues that need direction or a policy decision by the City Council,
or need a major funding decision by the City Council, or issues that need City Council leadership
in the community or with other governmental bodies. The policy agenda is divided into top
priorities and high priorities.
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2017-2019 POLICY AGENDA
TOP PRIORITIES (in alphabetical order)
• Central Avenue Revitalization: Streetscape and Business Development
• Citywide Flower Planting Program
• Communitywide Solar Strategy
• Comprehensive Plan: Adoption
• East-West Corridor Study Implementation
• Master Plan for Chaplain Schmitt Island
• South Port Redevelopment Master Plan
• Splash Pad
HIGH PRIORITIES (in alphabetical order)
• Crime Prevention Program Expansion
• Dilapidated Buildings/Structures
• Five Flags Center Study
• Inclusive Dubuque
• Kerper Boulevard Revitalization Report
• Multicultural Family Center: Colts Building Direction and Funding
• River Cruise Docking Facilities
• Roosevelt Road Water Tower
MANAGEMENT AGENDA items are issues for which the City Council has set the overall
direction and provided initial funding, may require further City Council action or funding, or are
major management projects that may take multiple years to implement. The management
agenda is divided into top priorities and high priorities.
2017-2019 MANAGEMENT AGENDA
TOP PRIORITIES (in alphabetical order)
• CHANGE Program: Implementation
• Citywide Traffic Signal Synchronization
• Comiskey Park Expansion and Renovation
• Crescent Community Health Center: Development Agreement
• Greater Dubuque Development Corporation Downtown Transformation (True North)
• Residential Housing Upgrade/Flood Protection Program
• Westside Water System: Implementation
HIGH PRIORITIES (in alphabetical order)
• Affirmatively Furthering Fair Housing Plan: Development
• Cartegraph Partnership: High-Performance Government
• City Performance Measures/Open Data Catalog/Data-Driven Governance
• International City/County Management Association (ICMA) Fellowship International
Exchange
• Leisure Services Department Assessment
• Parking Ramp Maintenance: Direction/Funding
• Teen/Young Professionals/Seniors: Jackson Park Pilot Program
• Water & Resource Recovery Center Nutrient Trading
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Comprehensive Plan
In September 2017 the Mayor and City Council adopted a new comprehensive plan, "Imagine
Dubuque 2037: A Call to Action." The comprehensive plan serves as a guide for the community's
physical, social, and economic development. It can only be considered successful through the
input and implementation of the community at-large. Engaging the community in a conversation
about the future of Dubuque was at the core of the Imagine Dubuque process. Comprehensive
plans are policy guides. Unlike zoning or city codes, they are not regulatory in purpose or
application. Information in the Comprehensive Plan is used in many facets of city life. Of
greatest note is its role in informing City Council goal setting, which creates the annual
budget priorities and land use decisions; the plan is not a substitute for the annual City
Council goal setting process.
As stated in the plan, "It is hoped that you will heed this call to action. It is your responsibility to
develop the action steps, create the strategies for success, be inclusive in your efforts, and
make your community sustainable and resilient. These are your ideas and you have the
responsibility to participate and move them forward."
It was imperative to city leadership that the process of developing the comprehensive plan be
inclusive and representative of the community. A year of community outreach produced over
12,500 ideas from all sectors of Dubuque. This outreach took many forms, from casual
conversations at pop-ups events such as the Farmers' Market to focus groups, workshops,
surveys, and on-line submissions. Beginning with Dubuque's Vision 2000 process initiated in
1990, the City has developed a tradition of local community planning excellence, and the
comprehensive plan integrates those past planning efforts into one consistent vision for the
community's future.
The comprehensive plan serves as a guide for the community's physical, social, and economic
development. It is a community-wide resource that can only be considered successful through
the input and implementation of the community at-large. Engaging the community in a
conversation about the future of Dubuque was at the core of the Imagine Dubuque
Comprehensive Planning process. That focus on listening intently to residents and tackling
community-wide challenges together is one of the key reasons Dubuque was named an All-
America City by the National Civic League four times in just 10 years!
Communities are dynamic - economic conditions change, technology causes change, and
people change. A comprehensive plan must, in turn, be dynamic.
It cannot be viewed as a reflection of any one moment in time, rather it is an evolving vision
based on the lessons history offers, current conditions, and anticipated issues and opportunities.
The comprehensive plan is typically evaluated and updated approximately every five years or as
needed to assure it is relevant to current community issues and priorities. However, the planning
process - if done in a way that reaches out and responds to all areas of the community - is
indispensable in creating policies that reflect the values and desires of Dubuque. The process
used to create the Imagine Dubuque Comprehensive Plan, and the plan itself, is based on
listening closely to the ideas and desires of the community.
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Dubuque's planning history begins in the 1930s, when noted landscape architect and city
planner John Nolen was retained to develop the first comprehensive city plan for Dubuque.
Considered by many to be the "Father of City Planning," Nolen advanced the City Beautiful
movement of the late 19th and early 20th Centuries to address many of the physical, economic,
and social facets that shape urban life, thus giving rise to modern urban planning. While the
beauty of one's environment, both physical and natural, was always central to Nolen's approach
to successful communities, he also taught that purpose, function, and efficiency was equally
vital.
Adopted in 1936, the first plan for Dubuque established the framework for coordinated growth
and development. Nolen noted prior to 1936, much of Dubuque's progress was disjointed. He
noted Dubuque was blessed with many out-standing and praiseworthy qualities; however,
greater coordination throughout the city would build a stronger economy and community.
Unfortunately, the City did not adopt a replacement to this 1936 comprehensive plan until 1995.
This almost 60-year hiatus cost the community dearly. During that period, Dubuque went from a
thriving, bustling, growing community to one devastated by flooding, severe economic
downturns, and being ignored in the 1960s, 1970s, and 1980s when the interstate highway
system was being built. Initially, Dubuque began to stagnate and then began to drastically
shrink, losing population and employment.
The recession and farm crisis of the early 1980s had devastating effects on the Midwest and
Dubuque. As farm families struggled with the loss of their land and livelihoods, so too did local
businesses. Though farmers bore the brunt of the crisis, its impacts were far reaching.
Dubuque's economy was strongly influenced by its meat-packing and construction-equipment
industries which were impacted by the recession. The combined effects of the recession, the
farm crisis, and a changing national economy resulted in massive layoffs and economic decline.
By January of 1982, Dubuque's unemployment was the highest in the nation at 23%. Between
1980 and 1990, Dubuque lost 7.8% of its population. In 1983, the Chamber of Commerce
estimated that 10% of housing stock was vacant and by 1984 the average home value dropped
9%. Dubuque needed to reinvent itself and diversify. Out of this adversity arose the realization
that if Dubuque were to succeed, it must return to those fundamental tenets of Planning,
Partnerships, and People working together to make a difference. Residents, business,
education, philanthropy, labor, not-for-profits, and government must plan and work together to
build a stronger, more resilient, and diversified economy and community.
Fortunately, in 1990, the City Council split the Planning and Zoning Commission into two
separate entities and directed the newly formed Long Range Planning Commission to conduct a
process to create a future vision for the community. In 1992, the City Council adopted Vision
2000. This then launched a three-year process that culminated in 1995 with the adoption of the
first comprehensive plan since 1936. Thousands of citizens participated in this five-year process,
and the results received broad-based community support. Multiple specific action plans were
then developed as the community worked to achieve the new vision, including riverfront
development, downtown, and industrial park master plans.
The 1995 comprehensive plan, entitled Creating the Future, was built on the grassroots
visioning effort and around the physical, economic, and social environments of the community. A
balanced approach to community development was once again prioritized. At this same time, the
Dubuque community also began to reinvent the riverfront. People, Planning and Partnerships
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were put in place and the America's River Project was underway. The formerly disconnected,
declining industrial Port of Dubuque was transformed into a destination for tourists and residents
alike. Community planning continued in earnest. The new comprehensive plan was updated in
2002, 2008, and 2012.
The formation of the Dubuque Racing Association, Dubuque Main Street, the Convention and
Visitors Bureau, Sustainable Dubuque, the Greater Dubuque Development Corporation, the
Dubuque Area Labor-Management Council, and the Community Foundation of Greater Dubuque
have been critical to the success Dubuque has been experiencing.
In 2005, something very special happened. The Community Foundation of Greater Dubuque
and the Dubuque Area Chamber of Commerce led the Envision 2010 process. The community
was asked what ten projects they would like to see adopted by 2010. Over a 12-month period,
thousands of citizens became engaged in the community conversation; with thousands of ideas
submitted, the list eventually was reduced to ten projects.
In addition, individual organizations, like the Greater Dubuque Development Corporation, began
to create strategic plans. The Greater Dubuque Development Corporation began a series of five-
year economic development plans. These plans were strongly anchored in specific action steps
and measurable outcomes that led to tremendous progress with the number of people working
in Dubuque County growing from 37,000 in the 1980s to over 60,000 in 2017. During this time,
the average wage and median household income growth exceeded the rate of inflation, and
millions of square feet of commercial, industrial, and residential construction occurred.
Sustainable Dubuque is a City Council adopted, community-created, and citizen-led initiative
whose story officially begins in 2006. A City Council priority each year since, the community is
continually working to expand awareness, create partnerships, and encourage initiatives
involving all sectors of the community to make Dubuque a more viable, livable, and equitable
community.
By 2012, Sustainable Dubuque had fully developed and made significant contributions in the
community. The framework and principles of Sustainable Dubuque were incorporated in 2012
into the City of Dubuque Comprehensive Plan, further reinforcing the relationship between
sustainability and comprehensive planning efforts.
In 2012, community leaders from business, nonprofits, education, government, philanthropy, and
the faith community came together and developed a vision for Inclusive Dubuque. Inclusive
Dubuque is a peer-learning network of partners committed to supporting an equitable and
inclusive culture to meet the economic and cultural needs of a diverse community. The network
works collaboratively to eliminate bias in Dubuque. With the collective impact model led by the
Community Foundation of Greater Dubuque, Inclusive Dubuque is a large network dedicated to
advancing justice and racial equity.
The 2017 Imagine Dubuque Comprehensive Plan is a new plan that reflects the Sustainable
Dubuque model for a more viable, livable, and equitable community, and embraces the Inclusive
Dubuque vision: to have an informed, equitable, and inclusive community where all people feel
respected, valued, and engaged. Imagine Dubuque builds on these past planning efforts, but
takes this comprehensive plan direction directly from the community with the most extensive
public engagement process ever undertaken in Dubuque.
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It will take significant time, effort, and in many cases funding, to achieve the vision outlined in
this Imagine Dubuque Comprehensive Plan. It is the community's responsibility to develop the
action steps, create the strategies for success, be inclusive in their efforts, and make the
community sustainable and resilient.
As the City approaches implementation of the plan, it needs to be remembered that this is a
community plan and the city should not take the lead on items best implemented by others. The
City does need to identify ways to encourage and support others and to partner where
appropriate to make the plan a reality.
It is an important thing to remember is that this is a 20-year plan and all the public and private
resources to implement the plan components will not be available all at one time.
One of the challenges that will be presented to the Mayor and City Council will be requests that
come from organizations for funding assistance to help with the implementation of comprehensive
plan components.A recent example is the request for$20,000 per year as a line item in the annual
City budget that would be provided to the Dubuque Eats Well Coalition "to 1) support the start-up
and first year's work of the Council, and 2) establish a community food systems development tool."
One challenge to this request is this issue does not appear in the City Council list of priorities for
this budget cycle. The City of Dubuque currently has grant programs designed for requests similar
to this,though the idea of continuous annual funding poses a special challenge and potential burden
on the property taxpayers in the community.
Grants to Community Organizations & Residents
The City of Dubuque utilizes four grant programs to financially support organizations and residents
in the community that are partnering with the City to achieve the City Council's Goals and Priorities.
The funds are strategically invested to empower non-profits, businesses, faith organizations,
schools, and residents to implement projects that address problems they see in their neighborhoods
or organize events that build community. This investment is key to implementing projects that meet
Council priorities like creating a more equitable and sustainable community, or the
recommendations from the Imagine Dubuque Comprehensive Plan, as examples. They often
provide financial support to accomplish initiatives that the City cannot or should not accomplish on
its own.
In 2016, the City staff responsible for administering the grant programs described below began
meeting to identify ways in which the programs could be better coordinated. Efforts are currently
underway to align reporting requirements for each program, so that staff can more accurately reflect
the impact of grantees' work in the community, and to intentionally integrate an equity lens into all
program requirements.
Purchase of Services
The Purchase of Services grant program is designed to provide support for human service programs
in the City of Dubuque that further the City's goals, objectives and priorities. Historically,the Council
has allocated approximately$100,000 annually for non-profits to start or expand an existing service.
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Not-for-profit organizations within the City of Dubuque that provide year-round human services
programs and whose mission is consistent with furthering the City's goals, objectives and priorities
are eligible. The City may award up to $25,000, provided it is no more than 75% of the project
budget. An applicant is eligible to receive funds for no more than four years in the competitive
program. The FY 2019 budget recommends an allocation of$80,784 in General Fund and $39,681
in Community Development Block Funds for a total of $120,465 to the Purchase of Services
program. Recommendations for funding will be made by the Community Development Advisory
Commission after the FY 2019 budget is adopted.
Sustainable Dubuque Community Grants
The goal of the Sustainable Dubuque Community Grant Program is to provide small amounts of
funding to assist non-profits, businesses, clubs, organizations, and groups of passionate residents
in implementing their ideas to make Dubuque a more sustainable place and to encourage all
residents and businesses to be part of the Sustainable Dubuque initiative. Grants of up to $2,500
may be awarded to any group of individuals to implement a project that helps to achieve the
Sustainable Dubuque vision and includes a component of community education and/or
engagement. $25,000 in General Funds is recommended in the FY2019 budget for this grant
program.
Neighborhood Grants
This line item represents grants for neighborhood clean-up and beautification, communications,
neighborhood improvement projects, and community-building initiatives. In the previous year, 22
separate grantswere awarded to neighborhood groups and non-profits operating in ourcommunity's
low/moderate income neighborhoods. Sixteen smaller community-building grants were awarded
to groups for activities such as neighborhood block parties, family fun day at Comiskey, Music in
Jackson Park, movies in the park, neighborhood holiday celebrations,and a Juneteenth celebration.
$24,560 is recommended in the FY2019 budget for this grant program.
Arts & Culture Grants
Since 2005,the City of Dubuque has awarded over$2.8 million to area arts and culture organizations
and other non-profits for programs that reach thousands of Dubuque adults and children each year.
$245,000 is recommended in the FY2019 budget for these grant programs. The grants are divided
into two categories. The Operating Support program ($210,000) provides operating support funding
to established 501c3 arts and culture organizations located in the city of Dubuque that primarily
serve Dubuque residents with year-round arts and culture events, programs, and services and can
demonstrate a record of programmatic and administrative stability. The Special Projects program
($35,000) is designed to encourage arts and cultural programs that are inclusive and remarkable
for their social and cultural vibrancy. The Special Projects program seeks to fund artistic, creative
projects that utilize community engagement at their core. Eligible applicants are Dubuque not-for-
profits with 501c3 and incorporated status, organizations who are affiliated with an umbrella
organization, or other organized groups acting as a non-profit.
While I do not make a recommendation in the Fiscal Year 2019 budget to increase the funding
for any of these City grant programs, I think that would be a better option than providing annual
line item funding authority from the City's general fund for these types of requests, except on a
very limited basis. There are over 400 not-for-profit organizations in the Dubuque area, many
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that would like to receive City funding. Should the City Council want to boost the funding in any
of these grant programs, there are these choices:
1 . Increase the Fiscal Year 2019 recommended property tax levy. A 0.25% increase in the
impact on the average homeowner (going from 2% to 2.25%) would change the dollar
impact on the average homeowner from a $15.11 increase in costs to a $18.89 increase
in costs. The property tax impact on commercial, industrial, and multi-residential
properties would still show a decrease. This 0.25% increase would generate $129,817
per year in new revenues that could be placed in some of these grant programs.
2. Reduce some of the recommended expenditures in the Fiscal Year 2019 budget and
place those savings in the City grant programs. If the funding to the organization is to be
recurring each year, the eliminated expenditure should be recurring.
3. Delay a decision until Fiscal Year 2020 which would create an opportunity for this issue to
be considered through the August 2018 City Council goal setting session where there will
be decisions made on the Fiscal Year 2020 budget priorities.
I support option #3. I believe in what the Eat Well Coalition wants to do but how does it compare
with and how does it compete with (since funds are limited the allocation is a competition) things
like those programs dealing with the opioid crisis, those supporting educational attainment
outside of school for youth in poverty, those helping convicted criminals productively return to
society, job training for unemployed and underemployed, the mental health crisis, and so many
other good causes. A competitive grant process allows a citizen panel to make
recommendations on how to allocate these limited resources taking into account City Council
priorities and comparing requests against each other. That does not mean no community effort
ever gets general fund line-item funding, but it does mean there should be strong reasons to ask
the taxpayer to put a request on the same funding source as the Police and Fire Departments.
As stated in the comprehensive plan, a strong economy is key to Dubuque's present and future
success. While the City of Dubuque certainly has a role in promoting economic prosperity,
partners like the Greater Dubuque Development Corporation, Dubuque Main Street, Northeast
Iowa Community College, the Community Foundation of Greater Dubuque, the Dubuque Area
Chamber of Commerce, East Central Intergovernmental Association, and others are key drivers
in this area, all dependent on businesses creating jobs.
2017 marked the conclusion of the Greater Dubuque Development Corporation Next Campaign,
a very successful effort to promote economic growth focused on job creation, increased wages,
construction investment, and population growth. Targets established by the Greater Dubuque
Development Corporation in each of these categories in 2012 were exceeded by the end of the
campaign in 2017. Greater Dubuque Development Corporation recently launched their new Greater
Dubuque 2022 campaign to continue that success over the next five-year period.
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Goals for this new campaign include:
• 64,000 jobs, an increase of over 5% from current levels
• $800 million dollars in new residential and commercial construction
• $60,000 median household income ($47,450 in 2015)
• 100,000 population in the Greater Dubuque Area (97,000 in 2017)
The five pillars for progress of the Greater Dubuque Development Corporation include:
• Business Retention and Expansion
• Workforce Solutions
• National Marketing
• Sustainable Innovations
• Start-Up Dubuque
The results of the GDDC Business Retention and Expansion interviews (341) of regional
corporate chief executive officers for July 1 , 2016, show 55% with increased sales, 52%
reporting increased market share, and 40% reporting plans to expand.
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ti
Prepared by City Manager's Office; Address: City Hall, 50 W. 13th Street;Telephone: 589-4110
RESOLUTION NO. 43-18
ADOPTING THE CITY OF DUBUQUE FISCAL YEAR 2019 ANNUAL BUDGET
it
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the annual budget for the fiscal year ending June 30, 2019, as set
forth in the Adoption of Budget and Certification of Taxes and supporting state budget
forms showing the revenue estimates and appropriation expenditures and allocations to
programs and activities for said fiscal year, is adopted.
Section 2. The City Clerk is directed to make the filings required by law.
Passed, approved and adopted this 28th day of Febr ary 2018.
c
/41
Roy D. ol, Mayor
Attest:--- ------ a--e.
V-v
Trish L. Gleason, Assistant City Clerk
Prepared by City Manager's Office; Address: City Hall, 50 W. 13th Street;Telephone: 589-4110
RESOLUTION NO. 44-18
ADOPTING THE CITY OF DUBUQUE FIVE YEAR CAPITAL IMPROVEMENT
PROGRAM
WHEREAS, a recommended five-year Capital Improvement Program for the
period beginning July 1, 2018, and ending June 30, 2023, for the City of Dubuque has
been prepared and submitted to the City Council; and
WHEREAS, the five-year Capital Improvement Program describes specific
capital improvement projects, provides estimated costs for those projects, proposes
sources of funds for each of them, and schedules the year during which each project
will be undertaken; and
WHEREAS, the capital improvement projects for the first year are included in the
Fiscal Year 2019 budget for the City of Dubuque; and
WHEREAS, the five-year Capital Improvement Program will be reconsidered
annually by the City Council and appropriately revised; and
WHEREAS, the adoption of the five-year Capital Improvement Program is a
prudent measure to provide continuity of programs and is in the best interest of the City
of Dubuque.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the five-year Capital Improvement Program for the period
beginning July 1, 2018, set out in the Fiscal Year 2019-2023 Recommended Capital
Improvement Budget as amended, is hereby approved and adopted as the proposed
allocation of City resources for capital improvements as scheduled in the years shown,
subject to annual review and revision.
Passed, approved and adopted this 28th day of Februa 2018.
tifri
Roy D. Buo ayor
Attest:
C-�
Trish L. Gleason, Assistant City Clerk
STATE OF IOWA {SS:
.
DUBUQUE COUNTY
ERTIFICAT-ION OF-PUBLICATION— ---
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation,publisher
of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County
of Dubuque and State of Iowa;hereby certify that the attached notice was published in said newspaper
on the following dates: February 17, 2018, and for which the charge is $191.65.
,---- --4-ae,,,,--24
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this e,foeo day of .. 0?----',.viet-'2-ee—re--1,- , 20 /eS' .
I
Notary Public in and for Dubuque County, Iowa.
1 7, TARN/K WESTERMEYER
C.,ommsson• - N r b.r 154885
• 7,--,,,i,• In . u 0 ,.,
`..)mriiission En.Feb 1,2020
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PUBLICNOTICE OF
HEARING . ,,•.;•••'-,..'". .,' -r•'..„ .• .,„,,,...,
Form 631.1 , .
•
FISCALYERBEGINMNGThQ'LY1 2018 ENIDINGJUNE3O 2019
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estimated rate pe ,ah.eebolar'5r9P94, 1083734
The tax on Agricultural land is3 00375
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:ni,Financi7lioe ,4W977440 , 0 445
T1ansfersinv47 : kNaigr ,. Pp,,; 31,976 , g. 345
Total Revenues and Other Sources 6I5v20; :269 ,:::,36 ;31123;64;413
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Expenditures&Other Fiaaina Uses Ji1 IV „ vg
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Public Works 11 12701671 . 11547440
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Debt Service : , , 22 10662063 10;073'974 ' 2 31960
Caital Projects' ' ' '- 23, --27,868,715 74,872,648. .27904170
Total at-A6tiilti§s ?Peidittres0666,066 167 310 45i1. ; 12241 179
Business P"PEnterpriq§ 0 , . E24,666 ; 71; 50i4g64269;682
Total ALL Exp0:1ii7!7l' 4 , W78"13§ 451
tiabfet*pyfw1A :9;;' I:* r36t92., t.
rntirE, ietJtuFp , ai0141 ,P ,,* - . ' :,0:7‘;,:c:!t ;7; 1! 8:i ;;i;. :5 !0
Sources Over
ihdr)gxPei!ti;eiillr1tlit a . 532,771
,5
2
4 „ 1
I1207
Beginning FundBelanoe'4O Y 1 30 397693. 772540 864 71419,657
Ending- tliie166400ei0'; z , ,31 3502-t :89 769 337e72!540'064
, - .:C' ''' AT ,,
.....
,.
•'..,..,;,',•';::
•,,',
•'....'
•.
.!,...,.
r.,.
. . .
. ... - . .
r
FY
II
Greatere I N FOACTION Action DASHBOARD 16-17
Dubuqu
Company Visits July 01, 2016 TO June 30, 2017 Company Plans
International
3%
TOTAL 40 0/0
341V s r s Local National HAVE PLANS TO
28% 26% EXPAND
36,943
Regional
43% Pendir Yes 20% 12%
TOTAL EMPLOYEES
PRIMARY MARKET
No 68%
Sales&Market Share MANAGEMENT
Decreasing Decreasing CHANGES
12%r5% Pending
6%
/
Yes
9%
Stable
\
Stable Increasing55% 43% Increasing
33% 52%
3 No 85%
SALES MARKET SHARE OWNERSHIP
CHANGES
Community Strengths&Weaknesses
TOP 5 STRENGTHS TOP 5 WEAKNESSES
220/ Qualityoflife/ 290/ Workforce
0 Amenities 0 Challenges
18 Q0 Community Leadership/ Crime/
/0 Support/Partnerships 200/ Social Tension
18Q/Q Location/ 0 Ci Cost/Fees/
Q Customer-Supplier Access 1 6 /Q R es
1 0 Market Size/
Connections/Loyalty 1 2 /Q 0 Population/Market
/0 Size/Capacity
130/ Employee Work Ethic/ 1 20/ Transportation
0 Longevity Q Road/Air
-14-
Barriers to Growth Community Services Index Scale:1 is poor, lis excellent
Fire
148 341 Ambulance
Police
0 F Col leges&Universities
COMPANIES Community College
HAVE A BARRIER TO Education
Health arae
GROWTH
Air
REE
Community Services
Trucking Ilit
worChallenkforgeces Community Planning
36 C�0
Highways iiii
25% Population/Market
size/capacity Zoning/Building
Public Transportation 4.669
1 ��
Land/Building/
Availability-Cost i d Care 4.86
city costs/ Workforce Services 4 84
Is��0 Fees/Rates Regulatory
Transportation Streets
5 �O Road/Air Traffic Flow/Control 4.44
Pro perry Taxes 4.09
Air Passenger Service
0 1 3 a i 6 7
Utility Services Index
Reasons to
Gas 5.76
Expand Elsewhere
Water 5.76
Sewer 5.70 i
86
E
Cellular 5.54 1
OF3 41 Teleclecomom
5.27 I
COMPANIES COULD EXPAND Internet Access
OUTSIDEOF Internet Speed 5.06
DUBUQUE TO:E
310/0 WorkforceChallenges Workforce Assessment
® Population/Market
26% Size/Capacity
1 QO Corporate Community
/O Decision o Problem
Yes 60% 36% / Industry
Costs/ ProblemU7Q Fees/Rates /
64%
' Land/Building/
/� Availability-Cost
RECRUITMENT IF YES, IT IS COMMUNITY
CHALLENGES? OR INDUSTRY?
-15-
In the new 5-year campaign, GDDC has added a sixth pillar focused on reinvestment in the area
of Dubuque east of the bluffs and north of 10th Street:
• "Finding Dubuque's True North"
Greater Dubuque Development Corporation 2017 Community Perception Survey
One of the many benefits that will result from this expanded partnership with the community is
the "Greater Dubuque Development Corporation 2017 Community Perception Survey"
conducted in September 2017, with the results just recently available.
While I believe this poll indicates there is much work to be done, I also believe the results are
notable:
• Only 11 % disagreed with the statement, "Dubuque is a Safe Place to Live."
• Only 5% disagreed with the statement, "Dubuque is a Good Place to Live."
• Only 7% disagreed with the statement, "Dubuque is a Good Place to Work."
• Only 18% disagreed with the statement, "Dubuque is on the Right Track."
• 94% feel Safe or Very Safe in "Their Own Neighborhood."
• From across the city, a disappointing 27% disagreed with the statement, "I Feel Safe in
the North End."
• From across the city, a disappointing 38% disagreed with the statement, "I Feel Safe in
the Downtown."
• Only 10% disagreed with the statement, "Diversity is Beneficial in Our Community."
-16-
1 . General Impressions of Dubuque and Quality of Life
Measures
Note: due to rounding, percentages might not add up to 100%
• 73% Say Dubuque is heading on the Right Track
° 18% say Dubuque is heading in the Wrong Direction
° 9% say they are Unsure
80.090
6O.O%-
c
m
V
y 40.0%-
0-
72.7%
0.I0%-
a72.7%a
20.0%- p/
18.0%
9.3%
0.0%
Right track Wrong direction Unsure
Thinking about the direction of the Dubuque community,
would you say you believe the community is on the right track
or headed in the wrong direction?
Figure 1.1 Direction of Community
-17-
On a scale of 1 to 4, with 1 being strongly disagree and 5 strongly agree, respondents were
asked to state their level of agreement with several statements about Dubuque. A response of 3
is reflective of a neutral position to the statement. Figure 1 .2 provides a summary of the
affirmative responses.
▪ 84%Agree/Strongly Agree that Dubuque is a good place to live
o 11% Neutral
o 5% Disagree/Strongly Disagree
▪ 72% Agree/Strongly Agree Dubuque is a good place to work
o 18% Neutral
o
7% Disagree/Strongly Disagree
▪ 82% Agree/Strongly Agree that Dubuque is a good place to raise a family
o 11% Neutral
o
7% DisagreelStrongly Disagree
▪ 62% Agree/Strongly Agree with statement that Dubuque is a safe place to live
o 11% Disagree/Strongly Disagree
o 27% Neutral
100
80
ICACA
0
0
(0 GO
w
0
a40 83-h 82.5
20
0
Dubuque is a safe Dubuque is a good Dubuque is a good Dubuque is a good
place. place to live. place to work. place to raise a
family.
Figure 1.2 Agreement with Statements on Community Conditions
-18-
2. Area/Neighborhood Findings
Residents were asked about their frequency of going to different parts of the community
for shopping and other opportunities, their perceptions of safety in their own
neighborhoods, as well as that across Dubuque.
• In terms of frequency of going to parts of the community for "shopping, services,
restaurants, entertainment, or to use parks, bike trails, or other recreation facilities," 43%
indicated that in an average month they went to the Westend 10+ times for such things,
23% indicated going to the Northend 10+ times, and 19% to Downtown 10+ times.
50.0%-
40.0%-
30.0%—
C
%-40.0%-30.0%—
_
w
a
44.4%
20.0%-
10.0%- 21 2% 9
1J %
15.2%
0.0%
0 times 1-4 times 5.10 times 10+times
In an average month, how often do you go to Dubuque's DOWNTOWN
for shopping, services, restaurants, entertainment, or to use parks,
bike trails, or other recreation facilities?
Figure 2.1 Monthly Frequency of Downtown shopping, services, etc.
-19-
40 0 on
QV
V
d
n_
[43.2%
123.1%
10 0%1
17 8%1
1 S.7%1
1 1
C' liar.,, 1-4 times 5-30 tinges 10+times
In an average month, how often do you go to Dubuque's NORTHEND
for shopping, services, restaurants, entertainment, or to use parks,
bike trails, or other recreation facilities?
Figure 2.2 Monthly Frequency of Northend shopping, services, etc.
50.0%-
40 0%—
t 300%
0
a
0
-1_Wit•-a
20.0%—
27.7%
24.6%
10.0%—
D.0%
0.0%-0.0% ,
0 times 1-4 times 5-10 times 10-0-times
In an average month, how often do you go to Dubuque's WESTEND
for shopping, services, restaurants, entertainment, or to use parks,
bike trails, or other recreation facilities?
Figure 2.3 Monthly Frequency of Westend shopping, services, etc.
-20-
People overwhelmingly tend to feel safe in their own neighborhood, with 94%
saying they feel very safe or safe in their neighborhood (56% feel very safe, 38% feel
safe). 5% indicated they feel unsafe, and 1% feel very unsafe. Figure 2.4 provides a
summary of this across the parts of the community.
100.O%_
■Downtown
■Northend
❑Westend
80.0%- •Another part
600%- up-
—
c
a_
40.O%
20
a.0 r 1 11111L .i
Very Safe Safe Unsafe 'v'ery Unsafe
In general, how safe do you feel in your own
neighborhood?
Figure 2A Perception of Safety in Own Neighborhood by Location of Respondent.
• When asked to agree or disagree with the statement "I feel safe in the [Downtown/
Northend/Westend]," respondents reported feeling the safest in the Westend.
o 92% agreed with the statement that they feel safe in the Westend
• 4% disagreed, and 4% were unsure (see figure 2.5)
o 57% agreed with the statement that they feel safe in the Northend
• 27% disagreed, and 15% were unsure (see figure 2.6)
o 46% agreed with the statement that they feel safe in the Downtown
• 38% disagreed, and 17% were unsure (see figure 2.7)
-21-
100D%-
1.1 Downtown
•Northend
111Westend
80 0%- =Another part:
000%-
w
.10
C
0,
400%-
20 0%-
00%
Agree Disagree Unsure
I feel safe in the Westend area.
Figure 2.5 Perception of Safety in the Westend by Area of Residence
1 00 0%-
=Downtown
%-
=Downtown
•Northend
CWestend
aoo%-
c •Another part:
60 0%-
w
-
sa
d
40 0%-
20 0%-
0.096
Agree Disagree Unsure
I feel safe in the Northend area.
Figure 2.6 Perception of Safety in the Northend by Area of Residence
_22_
100.0%-
■D owntovwn
■rJorthend
❑1 +'estend
■Another part
Go 0%—
Z
a-
a-
0.0.
40.0%—
i
20.0%-
0.0%
Agree
0.0%0.0% Agree Disagree Unsure
I feel safe in the Downtown area.
Figure 2.7 Perception of Safety in the Northend by Area of Residence
-23-
3. Diversity and Dubuque
On a scale of 1 to 5, with 1 being strongly disagree and 5 strongly agree, respondents
were asked to state their level of agreement with several statements about Dubuque and
the issues of diversity and inclusion. A response of a 3 is reflective of a neutral position to
the statement.
• 68%Agreed/Strongly Agreed with the statement "Diversity is beneficial to
our community."
° 10% Disagreed/Strongly Disagreed
19% Neutral
3% Unsure
50.0%-
40.0%-
30.0'
c
a,
u
a) 1
20.0%-
21 i°:
10.0%-
1 ..
pay
14.111115 4% f c}`1 I 4
1 STRONGLY 3 4 5 STRONGLY
DISAGREE AGREE
Diversity is beneficial to our community.
Figure 3.1 Agreement with "Diversity is beneficial to our community"
-24-
• 55%Agreed/Strongly Agreed with the statement "Dubuque is a welcoming
community to people of different background."
O 16% DisagreedlStrongly Disagreed
o 29% Neutral
o 1% Unsure
50 0%-
40 0%—
aa 30-0%—
C
dl
d.
20,0%-
°0
10.0%-
4.6%
0 0% 1 - I I I
1 STRONGLY 3 4 `}TR,: 1GLY
DISAGREE AGREE
Dubuque is a welcoming community to people of different backgrounds.
Figure 3.2 Agreement with "Dubuque is a welcoming community to people of different
backgrounds"
-25-
• 46%Agreed/Strongly Agreed with the statement "Dubuque is an inclusive
community."
o 13% Disagreed/Strongly Disagreed
o 36% Neutral
o 5% Unsure
50.0%-
40.0%-
e. 30 0%-
c
V
L
4u
a
20.0%-
36 4%
27.2%
mob-
ma
0.0%
1 STRONGLY 2 3 4 5 STRONGLY
DISAGREE AGREE
Dubuque is an inclusive community.
Figure 3.3 Agreement with "Dubuque is an inclusive community"
-26-
4. Diversity and Dubuque
When asked to choose from a list of issues what is "the biggest challenge facing the
community as a whole," 39% said race relations, 21% limited employment options, and
17% said poverty.
40.0%—
.30
ai
s-
QF 20.0%— 39.0%
a
10.0%— 20.6%
10.46
1.196
None Substandard Unsure_Dont Poverty Limited Race issues
housing Know employment
options
Of the following issues,which do you think represents the biggest
challenge for the Dubuque community as a whole:
Figure 4.1 Biggest Challenge Facing Dubuquc
-27-
When asked to choose from a list of issues "what is the biggest challenge in their
neighborhood," limited employment options, race relations, and substandard housing
were the top 3 issues selected. However, the most popular response to the question was
unsure/don't know.
Cw
CI
24.3%j
1r_ io ,
IIIM14.7
111"1
NM
ED
poverty Substandard Bone Pace issues Limited Unsure Dont
housing employment lii:no
Options
Of the following issues,which do you think represents the biggest
challenge for your neighborhood in particular:
Figure 4.2 Biggest Challenge Facing Neighborhood
-28-
Notably, race relations and substandard housing were the most notable issues for those
living in the downtown area. Figure 4.3 shows responses regarding biggest challenges by
area of residence of respondents.
Which part
of the
community
do you live
n?
■Downtown
40.0%— •Northend
D Westend
•Another part
:1
c
L
w
0_
1I
0.0% , Li
Po;eity Substandard Race issues Limited None Unsure Dont
housing employment Know
options
Of the following issues, which do you think
represents the biggest challenge for your
neighborhood in particular:
Figure 4.3 Biggest Challenge to Neighborhoods by Area of residence
-29-
5. Race Relations in Dubuque
Respondents were asked their level of agreement with the statement "the community has
been responsive to race relations issues." 40% said they Agreed/Strongly Agreed, 17%
Disagreed/Strongly Disagreed, 38% Neutral, and 4% Unsure.
40.0%-1
36 0%-1
1-•
C
a
41L
200%"
a 38•Sae,
10 0%-i 22.1%
2%
v
10.3�b
NEI
1110
0.0% 1 - -
1STRONGLY 2 3 4 5STRONGLY
DISAGREE AGREE
The community has been responsive to race relations issues.
-30-
Respondents were asked their level of agreement with the statement"race relations in
Dubuque are improving." 33% said they Agreed/Strongly Agreed, 28% Disagreed/
Strongly Disagreed, 36% Neutral, and 3% Unsure.
40.0%-
30.0%-
3+
C _
v
a► 20.0%-
0
36 2%
10:0%-
16 9%
% 16.9%
10.8%
0.0%
1 STRONGLY 2 3 4 5STRONGI
DISAGREE AGREE
Race relations in Dubuque are improving.
-31-
Respondents were asked their level of agreement with the statement "race relations in
Dubuque are getting worse." 38% said they disagreed/strongly disagreed, 30% say
they agreed/strongly agreed, 30% Neutral, and 3% Unsure.
G)
29.7%
10 i,,%- 19.5%
18.2%
14.5% 15.4%
0 008
1 STRONGLY 2 3 4 5 STRONGLY
DISAGREE AGREE
Race relations in Dubuque are getting worse.
-32-
Respondents were asked their level of agreement with the statement "race relations in
Dubuque are good." 23% said they Agreed/Strongly Agreed, 32% Disagreed/Strongly
Disagreed, 42% Neutral, and 2% Unsure.
50.0%
40.0°
7i .0%
C
CI
�l�1
y
42.2f4
20.0%
10.0% 18.6%
16.8%
13.7%
Q II°ia -
1 `<:TPCd 1GL e 3 4 5 STRONGLY
DISAGREE AGREE
Race relations in Dubuque are good.
-33-
Fiscal Year 2019 Budget Recommendation
The goal of the Fiscal Year 2019 budget recommendation is to maintain the momentum of our
community. The budget has been built around the vision, mission, goals, priorities and direction
provided by the Mayor and City Council at the August 2017 goal setting session, with input from
the community. A series of six public hearings will now be held by the Mayor and City Council
before adopting a final budget on February 28, 2018. The Fiscal Year 2019 budget year begins
on July 1 , 2018.
The strategic investments that have been made by the Mayor and City Council in infrastructure
and economic development initiatives are creating the intended results. As quoted previously
several years ago, an independent source addressing public policies, Stephen Goldsmith, who
is a professor of government at the Harvard Kennedy School stated, "If there is one place where
public officials should consider taking on more debt, it is in an area crucial to the country's
economic health, addressing deteriorating infrastructure -- roads, bridges, water systems and
the like."
"Now," he said, "is the time public officials should look at repairing their infrastructure.
Historically low interest rates provide an opportunity to inject necessary capital much more
affordably. Much of our infrastructure that is most in need of repair is deteriorating at a rate that
far exceeds current interest rates." Not repairing or replacing a water plant for another four
years would likely incur an annual cost three times higher than borrowing would, taking into
account the rate of deterioration as well as the increasing cost of materials.
He concluded that, "Officials who starve their capital budgets to help get past the bad times are
really engaging in another form of accumulating deficits. Importantly, the strategic use of
alternate financing structures, revenue sources, and public-private partnerships amount to a
prudent investment."
While in August 2015 the Mayor and City Council directed staff to start reducing the amount of
City debt, previous investments are still paying dividends. With the current City strategy of more
pay as you go investments and the acceptance that some debt will be issued each year, with a
goal to retire more debt each year than is issued, the City will continue to be able to leverage
past investment and create new opportunities to improve quality of life for residents, create jobs
and maintain infrastructure.
-34-
Again in Fiscal year 2019 City staff has been able to meet that goal of retiring more debt than is
being issued.
Retired Debt
Versus
New Debt
(In Millions)
u, $25
0
$20 $18.9 $19.2 $19.4 $19.3 $19.6
$17.8 $18.5 $18.2
$17.4 $17.2 $17.0
316.4
$15
MI 11 Is
$10
$10.0
$5 11$- $2.0 $2.0 $1.0 '.1.0 $1.0
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY28
Retired Debt •New Debt
While accomplishing the Mayor and City Council priorities, the goal is to minimize the costs for
the residents and businesses.
Fiscal Year 2016 Budget Significant Actions
Important historical context is provided by reflecting on the Fiscal Year 2016 budget and the
significant actions the Mayor and City Council took to successfully deal with challenges at that
time:
• Eleven full-time positions were eliminated. Six were eliminated through lay-offs (with
two of these employees able to be placed in other vacant positions). Five of the
eleven positions were eliminated due to the City not receiving the Federal Lead Paint
Hazard Mitigation grant. Fortunately, the City applied for another Federal Lead Paint
Hazard Mitigation Grant and was successful, so four of those positions were restored
in the Fiscal Year 2017 budget.
• A select hiring freeze the City Council had implemented in Fiscal Year 2015 of 11.98
full-time equivalent positions was modified after a contribution from the Library Board
reinstated 2.68 FTE in May 2015, with the remaining frozen positions extended for
Fiscal Year 2016. 7.60 remained frozen in Fiscal Year 2017.
-35-
• Non-bargaining unit employees did not receive a pay raise in Fiscal Year 2016.
• The Fiscal Year 2016 - Fiscal year 2020 Capital Improvement Program budget
underwent significant modifications eliminating and delaying many projects and
reducing future debt issuances.
• The organizations with which the City partners with through grants and purchase of
service agreements were also asked to sacrifice in Fiscal Year 2016. Generally, they
received a 10% funding reduction and that reduction was recommended to continue in
Fiscal Year 2017.
• In Fiscal Year 2016, the City continued a freeze on certain training and travel for City
Employees that began in Fiscal Year 2015. Recognizing the value of continuing
education to create an effective, efficient, and innovative organization, that freeze was
discontinued in Fiscal Year 2017.
• In Fiscal Year 2016, the Utility Franchise Free on electricity and natural gas was
increased from 3% to 5%.
• In Fiscal Year 2016, rental property owners were asked to pay more of the cost of the
Rental Licensing Inspection Program.
Along with enterprise fund fee increases, these actions of the Mayor and City Council through
the Fiscal Year 2016 budget process took the appropriate corrective action to compensate for
the funding issues facing the City at that time.
Fiscal Year 2019 Recommended Budget
Property Taxes
The Fiscal Year 2019 recommended City property tax rate of 10.5972 per thousand is a
2.71% decrease from Fiscal Year 2018, which follows a 2.47% decrease in Fiscal Year
2017.
The average homeowner would see a 2% ($15.11) increase in their property tax payment
for the City portion of their property tax bill. The average commercial property would see
a 3.84% ($126.04) decrease, the average industrial property a 3.46% ($170.38) decrease,
and the average multi-residential property a 7.13% ($143.71) decrease.
Fiscal Year 2019 follows Fiscal Year 2018 where the average homeowner saw no change in
their property tax payment for the city portion of their property tax bill, the average commercial
property saw a 2.50% ($84.16) decrease, the average industrial property saw a 2.49% ($125.58)
decrease, and the average multi-residential property saw a 7.13% ($143.71) decrease.
While the City property tax rate did increase slightly in Fiscal Year 2017 (1 .29%) and residential
property saw a 1 .08% increase, the average commercial property saw a 7.18% increase, the
average industrial property saw a 4.05% decrease, and multi-residential property saw a 2.93%
-36-
decrease. Fiscal Year 2017 saw the elimination of two full-time positions, including a Park
Ranger Position and a Parking Meter Service Worker.
Residential property was revalued by neighborhood by the City Assessor for the January 1 ,
2017, property assessments, which impacts the Fiscal Year 2019 budget. The average
residential property value increased 7%. This revaluation of residential property resulted in the
taxable value for the average homeowner calculation to increase from $130,357 to $139,493
(7%).
City Property Tax Rate Comparison for Eleven Largest Iowa Cities
Rank City Tax Rate
11 Council Bluffs $17.9072
10 Des Moines* $17.8600
9 Waterloo $17.6000
8 Davenport $16.7800
7 _Iowa City _ $16.3331
6 Sioux City $15.7708
5 Cedar Rapids $15.2162
4 West Des Moines* $12.7800
3 Ankeny* $12.2900
2 Dubuque (FY19) $10.5972
1 Ames $10.3759
AVERAGE w/o Dubuque $15.29
*Includes the transit tax levy adopted by the Des Moines Area Regional Transit Authority for comparability.
Dubuque has the SECOND LOWEST property tax rate as compared to the eleven largest
cities in the state. The highest rate (Council Bluffs) is 68.98% higher than Dubuque's rate,
and the average is 44.30% higher than Dubuque.
-37-
Property Taxes per Capita
Comparison for Eleven Largest Iowa Cities
Rank City Taxes Per
Capita
11 West Des Moines $1 ,080.48
10 Iowa City $880.57
1 9 Cedar Rapids $803.92
8 Ankeny $785.97
7 Council Bluffs $783.10
6 Davenport $728.35
5 Des Moines _ $657.24
4 Waterloo $583.82
3 Sioux City $524.31
2 Ames $513.91
1 Dubuque (FY19) $459.08
AVERAGE $734.17
Dubuque has the LOWEST taxes per capita as compared to the eleven largest cities in the
state. The highest (West Des Moines) is 135.36% higher than Dubuque's taxes per capita,
and the average is 59.92% higher than Dubuque.
The projected Fiscal Year 2019 property tax asking of$26,516,204 is a $653,155 (2.53%)
increase from Fiscal Year 2018. The total Fiscal Year 2019 budget recommendation
($174,823,105) is 3.01% more than the current budget year (Fiscal Year 2018). The Fiscal Year
2019 operating budget recommendation is $131 ,238,119 and the Fiscal Year 2019 Capital
Improvement Program budget recommendation is $43,584,986.
After the local option sales tax was passed by referendum in 1988 with 50% of revenue going to
property tax relief, the average property tax classification over that 30 years has seen the
following results:
Prior to
Sales Tax $ °lo
FY 1988 FY 2019 Difference Difference
Property Tax Rate $ 14.5819 $ 10.5972 -$3.9847 _ -27.33%
Average Residential Payment $ 512.38 $ 770.81 +$258.43 +50.44%
Average Commercial Payment $ 2,490.61 $3,154.39 +$663.78 +26.65%
Average Industrial Property $ 6,975.00 $4,747.38 -$2,227.62 -31 .94%
Average Multi-Residential Property (FY15) $ 2,472.99 $1 ,871 .76 -$601 .23 -24.31 %
-38-
As another gauge of operational efficiency, the City compared staffing levels with the other
largest Cities in Iowa in February 2016:
OVERALL COMPARISON OF FULL TIME
EQUIVALENT EMPLOYEES
#of FTEs Adjusted based
City Population #of FTEs on Services Offered
Des Moines 208,250 1524.00 1596.87
Cedar Rapids 128,901 1451.43 1449.43
Davenport 102,715 967.46 1027.52
Sioux City 82,372 788.77 795.37
West Des Moines 62,359 513.00 716.57
Dubuque 58,421 70197 703.97
Council Bluffs 61,864 499.00 689.28
Waterloo 68,358 557.17 687.80
Iowa City 75,522 598.48 649.42
Ames 62,514 572.00 594.76
Ankeny 53,099 234.22 455.56
Average Population 87,670
Average FTEs w/o Dubuque 866.26 _
Dubuque Compared to Average (162.29)
Dubuque Compared to Highest (892.90)
*The average FTE's without Dubuque is 866.26. Dubuque has 162.29 FTE's less than
the average and 892.90 less than the highest (Des Moines).
#of FTEs Adjusted based
City Population #of FTEs on Services Offered
Cedar Rapids 128,901 1451.43 1449.43
Davenport 102,715 967.46 1027.52
Sioux City 82,372 788.77 795.37
West Des Moines 62,359 513.00 716.57
Dubuque 58,421 703.97 703.97
Council Bluffs 61,864 499.00 689.28
Waterloo 68,358 557.17 687.80
Iowa City 75,522 598.48 649.42
Ames 62,514 572.00 594.76
Average Population 78,114
Average FTEs w/o Dubuque 826.27
Dubuque Compared to Average (12.2,30)
Dubuque Compared to Highest ('45.46)
**If you eliminate the cities that are least comparable to Dubuque (Des Moines due
to size and Ankeny due to catching up on their rapid growth),the average FTE's
without Dubuque is 826.27. In this scenario, Dubuque is 122.30 FTE below the
average and 745.46 FTE below the highest (Cedar Rapids).
-39-
Position Eliminations, New Positions and Unfrozen Positions
The Fiscal Year 2019 budget recommendation includes the elimination of 19.23 full-time
equivalent (FTE) positions:
FY 2019 Savings
(Includes
Department Position Type Benefits) FTE
Building Building Inspector II Full-Time $ 86,938 1.00
Engineering Engineering Technician -Temp Full-Time $ 4,900 0.06
Housing Lead Paint Supervisor Full-Time $ 59,464 0.62
Housing Lead Paint Inspector Full-Time $ 99,050 1.24
Housing Lead Paint Assistant Full-Time $ 45,191 0.62
Parking Parking Supervisor Full-Time $ 95,113 1.00
Parking Laborer Full-Time $ 75,140 1 .00
Parking Confidential Account Clerk Full-Time $ 59,170 1.00
Parking Parking System Technician Full-Time_$ 78,903 _ 1.00
Parking Customer Service Representative Part-Time-$ 23,602 0.55
Parks Laborer Seasonal $ _ 14,019 0.52
Police Corporal Full-Time $ 112,511 1.00
Public Works Laborer Seasonal $ 36,105 1 .31
Transit Bus Operator Part-Time $ 6,639 0.12
Transit Assistant Operations Supervisor Part-Time $ 54,368 0.75
Transit Customer Service Representative Part-Time $ 23,603 0.55_
Transit Dispatcher Part-Time $ 48,966 0.89
Transit Marketing Intern Seasonal $ 15,537 0.50
W&RRC Assistant Manager Full-Time $ 86,873 1.00
W&RRC Maintenance Electrician Full-Time $ 83,281 1.00
W&RRC Plant Operator Grade II Full-Time $ 39,660 0.50
W&RRC Plant Operator Grade IV Full-Time $ 85,473 1.00
Water Plant Manager Full-Time $ 125,708 1.00
Water Plant Operator Full-Time $ 74,959 1.00
Total FY 2019 Recurring Savings $ 1,435,173 19.23
With the addition of the following staff, the net change in number of employees in Fiscal Year
2019 is -5.99 FTE.
FY 2019 Cost
(Including
Department Position Type Benefits) FTE
City Clerk Clerical Intern Seasonal $ 8,268 0.31
E911 Records Clerk Part-Time $ 31 ,429 0.73
Engineering I&I Inspector Part-Time $ 34,491 0.75
Engineering Floodwall Interns Seasonal $ 9,761 0.25
Public Information GIS Applications Specialist Full-Time $ 36,441 0.50
-
Housing Inspector I Full-Time $ 82,631 1 .00
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FY 2019 Cost
(Including
Department Position Type Benefits) FTE
Housing Inspector I Seasonal $ 5,709 0.30
-
Police Captain Full-Time $ 142,710 1 .00
Police Police Officer Full-Time $ 93,028 1 .00
Public Works Clerical Assistant Part-Time $ 5,473 0.18
Public Works Utility Worker Apprenticeship Full-Time $ 58,295 1 .00
Recreation Field Supervisor Seasonal $ 6,682 0.23
Transportation
Services Parking Revenue Collector Part-Time $ 19,507 0.73
Transportation
Services Confidential Account Clerk Part-Time $ 40,509 0.73
Transportation
Services Dispatcher Full-Time $ 69,376 1 .00
Transportation
Services Field Supervisor Full-Time $ 86,848 1 .00
Transportation
Services Bus Operators Part-Time $ 1 ,505 0.03
Transportation
Services Transportation Analyst Full-Time $ 76,158 1 .00
W&RRC Operations Field Supervisor Full-Time $ 91 ,893 1 .00
Water Interns Seasonal $ 19,520 0.50
Total FY 2019 Recurring Cost $ 920,234 13.24
This follows the current budget year (Fiscal Year 2018) and previous budget year (Fiscal
Year 2017) recommendation that eliminated 9.60 FTE positions:
FY 2017 FY 2018
Savings Savings
(Includes (Includes
Department Position Type Benefits) Benefits) FTE
Building Building Inspector ll Part-Time $ 66,112 0.75
Engineering Limited Term E_ Igineering Tech Full-Time $ _ 75,126 0.94_
Engineering Environmental Engineer Full-Time $ 125,359 1.00
Engineering I&I Inspectors Full-Time $ 146,953 2.00
Engineering Engineering Aide NA Seasonal $ 58,584 1.50
Engineering Engineering Assistant Seasonal $ 25,808 0.50
W&RRC Lab Intern Seasonal $ 4,974 0.16
Parks Park Ranger Full-Time $ 76,249 $ 77,774 1.00
Parks Custodian Part-Time $ 4,696 $ 4,790 0.10
Recreation Custodian Part-Time $ 4,696 $ 4,790 0.10
Parking Parking Meter Service Worker Full-Time $ 71 ,104 $ 72,526 1 .00
Parking Laborer Part-Time $ 37,331 $ 38,078 0.50
Parking Ramp Cashier Part-Time $ 1 ,844 $ 1 ,881 0.05
Total Recurring Savings $ 195,920 $ 702,755 9.60
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Over a three-year period (Fiscal Year 2017, Fiscal Year 2018 and Fiscal Year 2019) the City
will have eliminated 28.83 full-time equivalent positions.
Since 1981 , the City has minimized the number of positions added. If the Fiscal Year 2019
staffing changes are approved, the City will have reduced its full-time workforce by 4.5% since
1981 . This was achieved in spite of all the new services that have been added in that time
period including staff-intense activities like recycling and combined county-wide public safety
dispatching. Also, the number of sworn Police Office positions has increased by 34 over that
time period.
The three year hiring freeze will end during Fiscal Year 2019. The positions to be unfrozen
will be further evaluated to determine if they should be reinstated as part-time positions, full-time
positions, or supplemented with contracted services. While these are the target dates, changes
in revenues and expenses during Fiscal Year 2019 could either expedite or delay some of these
dates. The positions being recommended to be unfrozen and the planned dates in Fiscal Year
2019 are as follows:
FY 2019
Cost
Date (Includes
Department Position Type Unfrozen Benefits) FTE
City Manager's Office Management Intern Part-Time 5/1/2019 $ 6,289 0.60
City Manager's Office Secretary Full-Time 5/1/2019 $ 9,852 1 .00
Engineering Traffic Engineering Assistant Full-Time 3/1/2019 $ 30,136 1 .00
Human Rights Community Engagement Full-Time 3/1/2019 $ 27,535 1 .00
Human Rights Training/Workforce Full-Time 3/1/2019 $ 27,535 1 .00
Information Services Help Desk Technical Support Full-Time 5/1/2019 $ 10,677 1 .00
Park Assistant Horticulturalist Full-Time 3/1/2019 $ 23,241 1 .00
Park Maintenance Worker Full-Time 3/1/2019 $ 23,708 1 .00
Park/Public Works Assistant Horticulturalist Full-Time 3/1/2019 $ 23,241 1 .00
Police Records Clerk Full-Time 1/1/2019 $ 29,885 1 .00
Total Fiscal Year 2019 Cost $ 212,099 9.60
The cost of the unfrozen positions in Fiscal Year 2020 is $690,644.
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Debt
The City will issue $8,188,000 in new debt in the recommended 5-year CIP, mostly for fire
truck and pumper replacements, sanitary sewer improvements, and renovation of the
former Colts Building.
FY FY FY FY FY
Project 2019 2020 2021 2022 2023 Total
Structural Repairs Fire
Station 5&6 $ 215,000 $ 215,000
Fire Station Expansion
Relocation $ 700,000 $ 700,000
Fire Ladder and Pumper
Replacement $ 292,000 $170,000 $ 462,000
Fire Quick Response Pumper $ 225,000 $ 225,000
Colts Building Renovation -
M FC $1,564,000 $1,564,000
Arena - Replace Chair
Platform Section 3 $ 58,000 $ 58,000
GRC Energy Efficiency
Improvements $ 183,000 $ 183,000
Jule Midtown Transfer
Relocation $ 212,000 $ 212,000
East/West Corridor Study
Implementation $ 400,000 $ 400,000
Outfall Manhole
Reconstruction $ 400,000 $ 400,000
W&RRC High Strength Waste
Storage $ 532,000 $ 532,000
Twin Ridge Lagoon
Abandonment $ 465,000 $ 465,000
Wood St Sanitary Sewer $ 78,000 $ 78,000
Harlan & Euclid St Sanitary
Sewer $ 75,000 $ 75,000
Cedar and Terminal Mains
and Lift Station $ 903,000 $1,416,000 $2,319,000
Center Place Alley Sewer
Rehab $300,000 $ 300,000
Total New Debt $2,932,000 $2,138,000 $1,416,000 $470,000 $1,232,000 $8,188,000
-43-
In addition, the City will access $34,742,470 of previously issued state revolving fund
loans as the related capital improvement projects progress. The draw down on these
previously issued loans is as follows:
FY FY FY FY FY
Project 2019 2020 2021 2022 2023 Total
Sanitary Kerper
Boulevard SRF $ 2,050,000 $ 2,050,000 $ — $ — $ — $ 4,100,000
Stormwater Upper
Bee Branch &
Sponsor SRF $ 1,337,170 $ 247,668 $ 247,668 $ 247,664 $ — $ 2,080,170
Stormwater Flood
Mitigation Project
SRF $ — $ 4,479,042 $ 9,000,000 $2,840,958 $ — $16,320,000
Water Roosevelt
Water Tower SRF $ 43,383 $ 431,617 $ 1,875,000 $ — $ — $ 2,350,000
Water CIWR
Purchase &
Improvements $ 5,664,990 $ 1,047,310 $ 1,090,000 $1,060,000 $1,030,000 $ 9,892,300
Total Draw Downs $ 9,095,543 $ 8,255,637 $12,212,668 $4,148,622 $ 1,030,000 $34,742,470
The City will retire $88,604,745 of existing debt over the next five-years (FY19-FY23).
The following chart shows the net reduction of debt from Fiscal Year 2019 - Fiscal Year
2023:
FY FY FY FY FY
Project 2019 2020 2021 2022 2023 Total
New Debt $ 2,932,000 $ 2,138,000 $ 1,416,000 $ 470,000 $ 1,232,000 $ 8,188,000
Previously
Issued SRF
Draw Downs $ 9,095,543 $ 8,255,6371$ 12,212,668 $ 4,148,622 $ 1,030,000 $ 34,742,470
Retired Debt -$17,162,687 -$17,787,317 -$18,470,987 -$17,028,712 -$18,155,042 -$88,604,745
Net Debt
Reduction -$5,135,144 -$7,393,680 -$4,842,319 -$12,410,090 -$15,893,042 -$45,674,275
Outstanding General Obligation (G.O.) debt on June 30, 2019 is projected to be $124,894,475
(56.38% of the statutory debt limit), leaving an available debt capacity of$96,618,281
(43.62%). In Fiscal Year 2016, the City was at 86.13% of statutory debt limit, so 56.38% in
Fiscal Year 2019 is a 29.75% decrease in use of the statutory debt limit.
The City also has debt that is not subject to the statutory debt limit, such as revenue bonds.
Outstanding revenue bonds payable by water, sewer, parking and stormwater fees, will have a
balance of$144,088,397 on June 30, 2019 .
-44-
The total City indebtedness as of June 30, 2019, is projected to be $268,982,872 (56.38% of
statutory debt limit). The total City indebtedness as of June 30, 2016, was $295,477,641
(86.13% of statutory debt limit). The City is projected to have $26,494,769 less in debt as of
June 30, 2019.
The combination of reduced debt and increased utility rates partially reflects the movement to a
more "pay as you go" strategy, which could lead to larger tax and fee increases than with the
use of debt.
The following chart shows the amount of retired debt as compared to new debt. The new debt
includes new debt issuances as well as draw downs on existing state revolving fund loans:
Retired Debt
Versus
New Debt
(In Millions)
u, $25
0
$20 $18.9 $19.2 $19.4 $19.3 $19.6
$17.8 $18.5 $18.2
$17.4 $17.2 $17.0
$16.4 ILL1
'
I I
$15
$10
111 $10.0
$5
$2.0 $2a0 111119
$-
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY28
•Retired Debt •New Debt
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In August 2015, the Mayor and City Council adopted a debt reduction strategy which targeted
retiring more debt each year than was issued by the City. This recommendation achieves that
target throughout the 5-year CIP. I am pleased to report the recommendation will substantially
beat overall debt reduction targets over the next five-and ten-year periods.
You can see that the Mayor and City Council have significantly impacted the City's use of
the statutory debt limit established by the State of Iowa. In Fiscal Year 2015, the City of
Dubuque used 90% of the statutory debt limit. In this budget recommendation, the Mayor
and City Council are currently reviewing for Fiscal Year 2019, the use of the statutory
debt limit would be 56%, and by the end of the recommended 5-Year Capital Improvement
Program (CIP) budget in Fiscal Year 2023, the City of Dubuque would be at 37% of the
statutory debt limit. Projections out 10 years to Fiscal Year 2028 show the City of
Dubuque at 19% of the statutory debt limit. This is an improvement on the debt reduction
plan adopted in August 2015, that first began implementation in Fiscal Year 2016.
Statutory Debt Limit Used
(as of June 30th)
100% -
90% 90.49%
89.89% :7.49%82.03%
86.13%
80% 78.53% 9.42%
4.47%
70% 1.74% 1.20%
69.47% 65.91%
60% 63.39' 66.04% 11."""""y62.23%
56.38%
50% - 50.95%
45.57%
40% -
41.10%
37.03%
30% 33,40%
29.89%26.08%
20%
18.99%
10% -
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28
FY19 Recommended FY16 Adopted
-46-
The following chart shows Dubuque's relative position pertaining to use of the statutory
debt limit for Fiscal Year 2019 compared to the other cities in Iowa for Fiscal Year 2017
with a population over 50,000:
Fiscal Year 2017 Legal Debt Limit Comparison for Eleven Largest Iowa Cities
Rank City Legal Debt Limit Statutory Debt Percentage of Legal
(5%) Outstanding Debt Limit Utilized
11 Des Moines $ 542,887,856 $ 386,535,000 71.20%
10 Davenport $ 323,975,819 $ 220,310,280 68.00%
9 Sioux City $ 212,162,397 $ 132,145,000 62.28%
8 Dubuque (FY19) $ 221,512,756 $ 124,894,475 56.38%
7 Ankeny $ 231,095,971 $ 129,162,000 55.89%
6 Waterloo $ 189,916,898 $ 106,013,702 55.82%
5 Cedar Rapids $ 498,689,692 $ 276,385,000 55.42%
Dubuque (FY23) $ 239,772,530 $ 88,792,943 37.03%
4 Ames $ 202,799,687 $ 68,230,000 33.64%
3 W. Des Moines $ 348,080,444 $ 114,130,000 32.79%
2 Iowa City $ 267,511,393 $ 66,845,000 24.99%
1 Council Bluffs $ 232,945,409 $ 48,723,175 20.92%
Dubuque (FY28) $ 264,728,248 $ 50,283,589 18.99%
By the end of the recommended 5-Year Capital Improvement Program (CI P) budget the total
amount of debt for the City of Dubuque would be $222.7 million (37% of the statutory debt limit)
and the projection is to be at $136 million (19% of statutory debt limit) within 10 years.
Total Debt
309.1 (In Millions)
o $310 $302.3
2 $290.1
$290 '295.6 $295.5 82.0 $279.9
$281.3 $265.6 $267.4
$270 $273.8
$269.0 $266.2 $255.9
$250 „ . .
$230 $239.0 $226.2
$210 $222.7
$206.4
$190
$189.8
$170 $171.9
$150 $154.0
$130 $135.8
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28
f FY19 Recommended FY16 Adopted
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General Fund Reserve
The City maintains a general fund reserve, or working balance, to allow for unforeseen
expenses that may occur. Moody's Investor Service recommends a 20% General Fund
Operating Reserve for "AA" rated cities. In May 2015, Moody's Investors Service downgraded
Dubuque's general obligation bond rating from Aa2 to Aa3, but removed the negative future
outlook. This followed two bond rating upgrades in 2003 and 2010, and one bond rating
downgrade in 2014. In announcing the bond rating downgrade, Moody's noted the City's
general fund balance/reserve declines. Dubuque's general fund reserve declined from 21
percent of general fund revenues in Fiscal Year 2013 to 14.9 percent in Fiscal Year 2014 due to
planned capital expenditures of$4.1 million in Fiscal Year 2014.
Dubuque's general fund reserve increased from 14.9 percent of general fund revenues in FY
2015 to 17.5 percent in FY 2016 due to capital projects not expended by the end of the fiscal
year and an increase in general fund revenue in FY 2016. It increased from 17.5 percent in FY
2016 to 19.75 percent in FY 2017 due to capital projects not expended by the end of the fiscal
year and additional contributions made to the general fund reserve.
The general fund reserve is projected to decrease to 18.23 percent of general fund revenues in
FY 2018 due to spending some of the balance for planned capital projects that were not
completed in FY 2017.
The City of Dubuque has historically adopted a general fund reserve policy as part of the Fiscal
and Budget Policy Guidelines which is adopted each year as part of the budget process. During
Fiscal Year 2013, the City adopted a formal Fund Reserve Policy which states the City may
continue to add to the General Fund minimum balance of 10% when additional funds are
available until 20% of Net General Fund Operating Cost is reached. The planned contribution to
reserves in Fiscal Year 2016 was $600,000, but the City was able to contribute $1 million. The
City contributed $600,000 to the general fund reserve in FY 2017.
After all planned expenditures and an additional $1 ,050,000 was added to fund balance in FY
2018, the City will have a general fund reserve of 18.03% ($8,805,048) of general fund
expenses as computed by the methodology adopted in the City's general fund reserve policy
(cash basis) or 17.91% ($12,832,730) of general fund revenues as computed by the
methodology used by Moody's Investors Service (accrual). The actual general fund reserve fund
cash balance is projected to be $8,805,048 on June 30, 2018, which does not include the
accruals used by Moody's.
The intent is to increase the General Fund working balance or operating reserve by $1 ,050,000
in Fiscal Year 2019. In subsequent years, the City will add to the operating reserve until 20% is
maintained consistently. In Fiscal Year 2017, the City had projected reaching this
consistent and sustainable 20% reserve level in Fiscal Year 2022. Now it is projected this
20% level will be reached in Fiscal Year 2020, two years ahead of schedule.
The reserve will increase by $3,400,000 (28.86%) from Fiscal Year 2018 - Fiscal Year 2020.
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Contribution $ 1,050,000 $ 1,050,000 $ 1,000,000 $ 100,000 $ 100,000 $ 100,000
General Fund Reserve $12,832,730 $ 13,882,730 $14,882,730 $14,982,730 $15,082,730 $15,182,730
% of Projected Revenue (Moody's) 17.91% 19.42% 20.73% 20.80% 21.29% 21.37%
-48-
In October 2016, Moody's Investors Service upgraded the rating on $18 million in City of
Dubuque bonds issued to support the Bee Branch Watershed Flood Mitigation Project
from A3 to A2.
State Revolving Fund Sponsorship Projects and Green Project Loans
The City uses State Revolving Fund (SRF) loans for water and sanitary sewer projects
whenever possible because of the very low annual interest rate of 1.75% with an annual
servicing fee of 0.25%.
In 2009, legislation was passed in Iowa that allows water utilities that issue debt through
the Clean Water State Revolving Fund Program to sponsor and help finance other water quality
improvement (CWSRF) projects within or outside its service limits. This new funding
mechanism, called Water Resource Restoration Sponsored Projects, will provide cities,
counties, local watershed organizations, watershed management authorities, county
conservation boards, and soil and water conservation districts a funding source to construct
improvements throughout a watershed that keep sediment, nutrients, chemicals and other
pollutants out of streams and lakes.
Repayment of a standard Clean Water SRF (CWSRF) loan includes the repayment of the
original loan amount, the principal, and the cost to finance the loan, interest and fees. On a
CWSRF loan with a sponsored project, the financing costs are reduced by the amount of the
cost of the sponsored project improvements. Figure 1 shows a comparison between a standard
CWSRF loan and a CWSRF loan with a sponsorship project. As shown, the total cost to the
utility (the total of loan repayments) remains unchanged as the cost of funding for the
sponsorship project is offset by a reduction in loan financing costs. In essence, two water quality
projects are completed for the price of one.
Funding for Sponsorship Project
N
,
o Loan Financing Costs
(Interest&Fees)
c I ,
m
0
J , CWSRF Project Loan Principal
,11
43�� soar
aL� •S��Sotrsecti
(ao�o�oa'c LS o� Qtol
�Q
Figure 1. Loan repayment comparison between a standard CWSRF loan and a CWSRF loan
with a sponsorship project.
-49-
After three years of the State of Iowa being unsuccessful in completing one of these modified
loans, the City of Dubuque had the first successful application for the state when, in April 2013,
the City was awarded $9.4 million of the interest paid on the Water and Resource Recovery
Center to be used to reconstruct over 70 Green Alleys in the Bee Branch Watershed. The
principal for the Water & Resource Recovery Center Upgrade was increased from $64,885,000
to $75,145,579 and the interest rate plus annual servicing fee was decreased from 3.25% to
2.00% to add the Green Alley sponsorship project. This reduction allowed for increased
proceeds and resulted in a true interest cost of 1.96% and gross borrowing savings of
$11.4 million.
The Fiscal Years 2010, 2011 , and 2012 State Revolving Fund capitalization grants included
requirements for certain percentages of the funds to be allocated for green projects. Each green
infrastructure project receives a portion of loan forgiveness not to exceed 30%. In June 2015,
the City of Dubuque Upper Bee Branch Creek Restoration Project (Upper Bee Branch Project)
qualified for a Green Project Loan from the CWSRF Program in the amount of$29,541 ,000.
The loan includes a "principal forgiveness" provision. The amount of the loan to be forgiven is
20% of the total loan disbursements made under the loan agreement. The amount of the loan
to be forgiven when the project is completed is estimated to be $5,908,200. The actual
true interest cost for total funds received was not the 2.00% borrowing rate (1.75%
interest and 0.25% administrative fee), but just 0.07% after reflecting the receipt of
interest free funds (forgiven portion).
Then, in August 2017, the City was awarded $1 .4 million in funding for improvements with the
Catfish Creek Watershed through the State of Iowa Water Resource Restoration Sponsored
Project program as part of the City's State Revolving Fund loan for the Upper Bee Branch Creek
Restoration Project. The funding for the $1 .4 million in improvements will come from the interest
payments on the City's Upper Bee Branch SRF loan. The Upper Bee Branch Creek SRF loan
principal was increased to $30,941 ,000 and the interest rate plus the annual servicing fee
was reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan
were $1.38 million less than the original loan.
-50-
City Utilities
The water rate increase recommendation is 3%, the sanitary sewer rate increase
recommendation is 3%, and the solid waste collection rate increase recommendation is 2.3%.
The City Council previously approved a 6.75% stormwater rate increase for Fiscal Year 2018
and this recommendation does not change that amount.
The following are the utility rate comparisons for other cities in the State of Iowa:
RATES AND COMPARISONS
Water Rate Comparison for Largest Iowa Cities with Water Softening
Rank City Water Rate(6,000
Gallons/residence
avg.)
7 West Des Moines $33.34
6 Des Moines $30.74
5 Iowa City $30.24
4 Dubuque $29.28
3 Ames $29.02
2 Cedar Rapids $28.20
1 Council Bluffs $28.16
Average w/o Dubuque $29.95
Dubuque's water is some of the best in the world! The highest rate (West Des Moines) is
13.85% higher than Dubuque's rate, and the average is 2.28% higher than Dubuque.
One important point worth mentioning related to water rate increases involves the 2016
purchase of the Central Iowa Water Association (CIWA) assets and the subsequent capital
project to extend City of Dubuque water service to these newly acquired 316 customers,
opening up thousands of acres for future development.
In December 2016, the impact on water rates, including the purchase of CIWA and capital
improvements and operating costs were estimated as follows:
FY18 FY19 FY20 FY21 FY22 Total
December 2016 Proposed
Rate Increase 4% 4% 4% 0% 0% 12%
-51-
Through the Fiscal Year 2018 budget process, the impact on water rates were reduced in FY
2018 by having the Water Department Manager perform the duties of the Plant Manager,
eliminating the position in the FY 2019 budget recommendation:
FY18 FY19 FY20 FY21 FY22 Total
FY 2018 Proposed Rate I1 /1
Increase 3% 4% 4% 0% 0% I I
I 1%
Between the time that the CIWA systems were purchased and the Fiscal Year 2018 budget was
adopted, additional water improvements have become necessary. These additional water
improvements include Roosevelt Water Tower ($3.7 million), Cottingham Road Water Main
Extension and Highway Boring ($1 .1 million), and Chesterfield Drive water main extension
($100,000).
Through the Fiscal Year 2019 budget process, the impact on water rates is proposed as follows:
FY18 FY19 FY20 FY21 FY22 Total
FY 2019 Proposed Rate
Increase 3% 3% 3% 4% 3% 16%
Sanitary Sewer Rate Comparison for Eleven Largest Iowa Cities
Rank City Sanitary Sewer
Rate
(Based on 6,000
Gallons/month)
11 Ankeny $61 .66
10 Des Moines $48.02
9 Davenport $43.88
8 Dubuque $40.43
7 West Des Moines $38.90
6 Iowa City $36.17
5 Ames $33.61
4 Sioux City _ $31 .88
3 Cedar Rapids $27.27
2 Waterloo $25.75
1 Council Bluffs $22.88
Average w/o Dubuque $37.00
The highest rate (Ankeny) is 52.52% higher than Dubuque's rate, and the average is 8.47%
lower than Dubuque.
-52-
Solid Waste Collection Rate Comparison for Eleven Largest Iowa Cities
Solid Waste Monthly
Rank City Rate
11 Ames $26.25
10 Cedar Rapids $21 .55
9 Council Bluffs $18.00
8 Iowa City $17.10
7 Sioux City $16.30
6 Ankeny $16.25
5 Dubuque $15.37
4 Davenport $12.27
3 Des Moines $11.00
2 West Des Moines $10.55
1 Waterloo $9.00
Average w/o
Dubuque $15.83
The highest rate (Ames) is 70.79% higher than Dubuque's rate, and the average is 2.97%
higher than Dubuque.
Stormwater Rate Comparison for the Largest Iowa Cities with Stormwater Fees
Rank City Stormwater Rate
10 _Des Moines $12.67
9 Dubuque $7.76
8 Cedar Rapids $6.12
7 Ankeny $5.50
6 Ames $4.95
5 Iowa City $4.72
4 _West Des Moines $4.85
3 Sioux City $2.80
2 _Waterloo $2.75
1 Davenport $2.64
Average w/o Dubuque $5.22
The highest rate (Des Moines) is 63.27% higher than Dubuque's rate, and the average is
32.70% lower than Dubuque.
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Improvement Packages
There were 131 improvement level decision packages requested in Fiscal Year 2019, of which
105 are being recommended for funding. The recurring general fund expenditures total
$132,653 and will also impact future budget years. The non-recurring general fund expenditures
total $515,141. The remaining improvement packages recommended for funding from non-
property tax support total $122,755.
Tax Increment Financing (TIF) Subareas Expired
On June 30, 2018, three subareas of tax increment financing districts will retire: Subarea B of
Dubuque Industrial Center West and Subareas A and B of the Dubuque Technology Park. This is
consistent with major amendments to Chapter 403 of the Code of Iowa enacted in 1994 which
changed economic development tax increment requirements for areas established after January
1, 1995, and limited those districts to a 20-year life. There is $76,526,204 of incremental value
created by these subareas that will be redistributed to all taxing bodies in FY 2019. In FY 2019,
the City of Dubuque will receive approximately$579,000 in general fund tax revenue from
Subarea B of Dubuque Industrial Center West and $171,000 in general fund tax revenue
from Subareas A and B of Technology Park.
The following is a chart that shows the amount of tax revenue to be distributed to each taxing
body due to the subareas retiring:
Retiring TIF - New Tax Money to Taxing Bodies in
Fiscal Year 2019
$900,000
$795,174
$800,000
$700,000
$600,000 $579,086
$500,000
$400,000 $337,144
$300,000 $234,752
$200,000 $170,958
$99,532
$100,000 $58,478
$17,264
$9,854 =,377
$-
Tech Park South -2019 DICW -Subarea B -2019
■DCSD •City •County ■NICC •Other
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State-Funded Backfill on Commercial and Industrial Property Tax
Commercial and Industrial property taxpayers previously were taxed at 100% of assessed value;
however, due to property tax reform legislation in Fiscal Year 2013, a 95% rollback factor was
applied in Fiscal Year 2015 and a 90% rollback factor will be applied in Fiscal Year 2016 and
each year beyond. The State of Iowa committed to backfill the loss in property tax revenue from
the rollback and the backfill 100% in Fiscal Year 2015 through Fiscal Year 2017 and then the
backfill will be capped at the Fiscal Year 2017 level in Fiscal Year 2018 and beyond. The Fiscal
Year 2019 State backfill for property tax is estimated to be $1,032,698.
Elements of the property tax reform passed by the Iowa Legislature in 2013 have created a
tremendous amount of uncertainty in the City's budget process. While the State has committed
to provide some funding for the City revenue reductions caused by the decrease in taxable value
for commercial and industrial properties, key State legislators have been quoted in the media as
casting doubt on the reimbursements continuing. In addition, the State's previous budget
shortfall and need to replenish general fund reserves could cause legislators to reduce or
eliminate the backfill in a special legislative session. Governor Reynolds proposed Fiscal
Year 2019 State of Iowa budget was submitted in January 2018 with full funding for the
backfill, so the Fiscal Year 2019 City budget recommendation does not meet the Fiscal
Year 2019 Budget Guidelines assumption of a $206,540 reduction in the State backfill
payments as the approximately $1 million in annual payments is eliminated after five
years. However, the projected City budgets beginning in FY 2020 do show a $206,540
reduction in the State Backfill payments each year over a five-year period.
The projected reduction of State backfill revenue to the general fund is as follows:
State Backfill
Fiscal Year Reduction
2020 $ 206,540
2021 $ 206,540
2022 $ 206,540
2023 $ 206,540
2024 $ 206,540
Total $ 1 ,032,700
In the Tax Increment Financing (TIF) Economic Development and Slum and Blight Urban
Renewal Districts in each of the five fiscal years in this budget recommendation, there is some
built-in protection against the possibility that, at some point in time, the State of Iowa might stop
funding the property tax reform backfill payments. In these TIF areas, the City is not allocating
all of the available resources. Each year the State funds the backfill will give the City greater
resources to accomplish the intended goals of the TIF district that can be carried into the next
budget year. There are numerous unfunded needs.
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Gas & Electric Utility Property Tax Replacement
The stated purposes of the Gas & Electric Utility Property Tax Replacement program are to:
1) Replace property taxes imposed on electricity and natural gas providers with a taxation
system which removes tax costs as a factor in a competitive environment by imposing like
generation, transmission, and delivery taxes on similarly situated competitors. 2) Preserve
revenue neutrality and debt capacity for local governments and taxpayers. 3) Preserve neutrality
in the allocation and cost impact of any replacement tax among and upon consumers of
electricity and natural gas in this state. 4) Provide a system of taxation which reduces existing
administrative burdens on state government.
The Iowa Legislature found that, with the advent of restructuring of the electric and natural gas
utility industry, a competitive environment would most likely replace the regulated monopoly
environment.
Previously, utility companies were subject to property taxes levied on their production and
transmission facilities. If those property tax levies would have continued in a restructured
environment, the property tax costs would have put Iowa-based utility companies at a
competitive disadvantage because out-of-state suppliers of energy would not have paid the Iowa
property tax.
Simply removing local property taxation on gas & electric utilities would have put energy
deliverers on a level playing field, but that would not have been fair to local governments. So it
was decided to put a property tax replacement system in place, in advance of the impending
restructuring, to ensure that the new system of taxation performed as intended.
Excise taxes, unique to geographic service areas, were calculated using methodologies that
equated the new excise tax to amounts previously paid as property tax. These excise taxes are
imposed on the generation and transmission of electricity and on the delivery of electricity and
natural gas to consumers. The City's tax levy per $1 ,000 of taxable value is first calculated on a
valuation which includes utilities, then those calculated rates are used against a valuation figure
with utilities removed. The excise tax makes up the difference in each levy.
The Gas and Electric Utility Valuation for the City of Dubuque decreased from $80,710,443
in FY 2018 to $76,350,084 in FY 2019, which resulted in a revenue loss of -$47,494.
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Local Option Sales Tax
The City is beginning to see stagnation in local option sales tax revenues. Fiscal Year 2019
Sales tax receipts are projected to decrease 2.3% under FY 2018 budget (-$207,932). The
estimates received from the State of Iowa show a 2.13% decrease in the first two payments
estimated for FY 2019 as compared to the first two payments budgeted for FY 2018. The
following chart shows the past four years of actual sales tax funds and projected FY 2019:
Sales Tax Funds FY15 FY16 FY17 FY18 FY19
PY Quarter 4 (Half) 1,317,830 $ 1,636,036 $ 1,496,339 $ 1,496,216 $ 1,464,348
Quarter 1 2,028,138 $ 2,205,844 $ 2,225,509 $ 2,160,588 $ 2,192,997
Quarter 2 2,060,081 $ 2,272,334_$ 2,292,593 $ 2,219,956_$ 2,253,255
Quarter 3 _ 1,852,473 $ 1,921,410 $ 1,921,252 $ 1,879,845 $ 1,908,043
Quarter 4 (Half) 681,369 $ 748,169 $ 748,108 $ 732,174 $ 743,157
Reconciliation 502,152 $ 511,314 $ 206,370 $ 154,036 $ 163,278
Total 8,442,043 9,295,107 8,890,171 8,642,815 8,725,078
Change +1.6% +10.1% -4.4% -2.8% +1.0%
While it is easy to blame this on e-commerce (ex: Amazon.com), and that certainly is having an
impact, it cannot be forgotten that in March 2016 the State of Iowa amended the sales and use
tax exemption provided by Iowa Code Sec. 423.3(47) for items used by manufacturers to
specifically exempt qualifying "replacement parts" and "supplies." While we cannot quantify this
because the State does not provide sales information, the impact has probably been substantial.
Gaming Revenue Reduction
Gaming revenues generated from lease payments from the Dubuque Racing Association (DRA)
have barely stayed the same (+$1 ,906) based on revised projections from the DRA. This follows
a $159,046 decrease from the FY 2018 budget and a $405,767 decrease from FY 2017 budget.
The Fiscal Year 2019 budget projections are based on six months of actual experience and, in
that period, gross gaming revenues are down 1%. The Dubuque gaming market was
significantly impacted beginning in May 2016 when Rhythm City Casino opened off Interstate 80
near Davenport. The DRA has projected a 0.50% increase in gross gaming revenue for
Calendar Year 2018.
The State of Illinois passed a Video Gaming Act in 2009 which legalized the use of Video
Gaming Terminals in liquor licensed establishments including bars, restaurants, truck stops, and
certain fraternal and veterans' organizations. In the part of Illinois that impacts the Dubuque
market, the first year of operation of video gaming terminals generated $1 million in revenue
monthly in Illinois. The use of video gaming terminals has now grown to $7.5 million monthly for
the five counties closest to Dubuque and in a direct line with Rockford, IL, which has caused a
reduction to the gaming market in Dubuque. The Q Casino and Diamond Jo Casino average
monthly revenue is$9.5 million. This is a similar impact as if approximately one and a half more
casinos combined were built half-way between Dubuque and Rockford.
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Multi-Residential Property Tax Classification
Beginning in Fiscal Year 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi-residential, which requires a rollback, or
assessment limitations order, on multi-residential property which will eventually equal the
residential rollback. Multi-residential property includes apartments with three or more units.
Rental properties of two units were already classified as residential property. The State of Iowa
will not backfill property tax loss from the rollback on multi-residential property. The rollback will
be 86.25% ($331,239) in Fiscal Year 2017, 82.50% ($472,127) in Fiscal Year 2018, 78.75%
($564,914) in Fiscal Year 2019, 75.00% ($677,719) in Fiscal Year 2020, 71.25% ($780,504) in
Fiscal Year 2021, 67.50% ($966,246) in Fiscal Year 2022, 63.75% ($1,054,773) in Fiscal Year
2023 and will equal the residential rollback in Fiscal Year 2024 which is currently 56.62%
($1,241,216). This annual loss in tax revenue of $564,914 in Fiscal Year 2019 and
$1,241,216 from multi-residential property when fully implemented in Fiscal Year 2024 will
not be backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City will
lose $6,088,737 in total, meaning multi-residential rental property owners will have paid that
much less in property taxes.
Multi-Residential Property Tax
Based on Average Assessed Value$224,289
$2 473
$2,500 $2 349
$2 226 $2 160
$2,000 ' $1 872 $1 849
I $1 758 $1 689
$1 663
$1,500 $1,451
$1,000
$500
$0 r/
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
•Multi-Residential Property Tax Paid-City Portion Only
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Health Insurance
The City portion of city employee health insurance expense is projected to decrease from
$1 ,325 per month per contract to $1 ,192 per month per contract or a 10% reduction (based on
562 contracts) in Fiscal Year 2019 (General Fund savings of$634,875). This does not meet the
Budget Guidelines which projected a decrease to $1 ,108 per month per contract ora 16.38%
reduction (general fund savings of$986,278). November 2017 medical claims were substantially
higher than the previous months which caused the per month per contract amount to increase
for FY 2019. The City of Dubuque is self-insured and actual expenses are paid each year with
the City only having stop-loss coverage for major claims. Estimates for Fiscal Years 2019-2022
have been increased by 6.32% per year.
The City went out for bid for a third-party administrator in FY 2017 and the estimated savings
have been realized from the new contract and actual claims paid. In addition, police officers and
firefighters begin paying an increased employee health care premium sharing from 10% to 15%
on July 1 , 2018. During FY 2018, the City went out for bid for benefit provider for the prescription
drug plan and there is an estimated $243,808 in savings resulting from the bid award.
The following chart demonstrates the health plan cost savings due to a new third party
administrator (TPA) for the health plan and a new pharmacy coalition:
With Wellmark and New
Without TPA RFP With Wellmark Pharmacy Coalition
Fiscal Year Amount % Change Amount % Change Amount
2016 Actual $ 9,622,297
2017 Actual $ 11,080,429 15.15%
2018 Projected $ 11,780,712 6.32% $10,182,986 -8.10%
2019 Projected $ 12,525,253 6.32% $ 10,499,899
$12,525,253
$10,499,899
-$2,025,354 FY19 Savings due to new TPA and Pharmacy Coalition
With Wellmark as the new third party administrator, FY 2018 showed a projected (through
December 2017 experience) $897,443 (8.1 %) in savings from FY17 actual.
If the City had not done a Request for Proposal for a new third party administrator, the projected
experience in FY 2018 was $11 ,780,712, where the actual experience with Wellmark as the new
third party administrator in FY 2018 is $10,182,986, a $1 ,597,726 (8.10%) decrease. Continuing
with Wellmark as the third party administrator in FY 2019 and contracting with a new Pharmacy
Coalition (RXB) in FY 2019, the City anticipates a reduction in costs of$580,530 (5.2%) from FY
2017 actual, a reduction of$1 ,280,813 (10.9%) from FY 2018 projected without Wellmark as the
new third party administrator, a reduction of$2,025,354 (16.2%) from FY 2019 projected if there
had not been an RFP to select Wellmark as the new third party administrator or an RFP to select
RXB as the new Pharmacy Coalition. The number actually impacting the FY 2019 budget for
health care, including pharmacy benefits, is a reduction from the FY 2018 budget of$10,599,276
to a projected cost in FY 2019 of$10,499,899, which is a 1 .0% reduction.
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The Jule
The decrease in property tax support for Transit from FY 2018 to FY 2019 is $13,210, which
reflects the consolidation of the Transit and Parking Divisions into the Transportation Services
Department following co-location at the Intermodal Facility in February 2017. Transit staff have
conducted an ongoing review of opportunities for jointly contracted services; technology
improvements to reduce manual processes; and areas requiring additional management review
and oversight. The goal of this improvement request is to realize cost savings, but also to
transform the way that transportation options and assets are evaluated, communicated and
managed. The creation of the Transportation Services Department will ensure a unified
approach to providing equitable transportation options in the City of Dubuque.
While the management will operate as one entity, the accounting for federally funded assets and
operations of public transit must remain separate. The cost of existing Transit administrative
positions will be split with Parking. There is additional planned savings in the Transit Fund in FY
2020 of$20,884 to complete the transition. There is additional planned savings in the Parking
Fund in FY 2020 of$42,632 to complete the transition.
The impact to the positions in the Transit and Parking Divisions is summarized as follows:
FTE FTE Eliminated/ Transit Cost Parking Cost Total
Position Transit Parking New (Savings) (Savings) (Savings)
Transportation Services
Manager (was Transit Manager) -0.50 +0.50 Existing -$72,579 $72,579 $-
Operations Supervisor -0.50 +0.50 Existing -$52,112 $52,112 $-
Field Supervisor FT +0.50 +0.50 New $43,424 $43,424 $86,848
Assistant Operations
Supervisor PT -0.75 0.00 Eliminated -$54,368 $- -$54,368
Transportation Analyst FT +0.50 +0.50 New $38,079 $38,079 $76,158
Intern Seasonal -0.50 0.00 Eliminated -$15,537 $- -$15,537
Customer Service PT -0.55 -0.55 Eliminated -$23,603 -$23,602 -$47,205
Confidential Account Clerk PT +0.51 +0.22 New $28,294 $12,215 $40,509
Dispatcher FT -0.20 +0.20 Existing -$13,931 $13,931 $-
Dispatcher FT +0.90 +0.10 New $62,438 $6,938 $69,376
Dispatcher PT -0.99 +0.10 Existing -$54,468 $5,502 -$48,966
Laborer FT 0.00 -1.00 Eliminated $- -$75,140 -$75,140
Confidential Account Clerk FT 0.00 -1.00 Eliminated $- -$59,170 -$59,170
Parking Supervisor FT 0.00 -1.00 Eliminated $- -$95,113 -$95,113
Parking System Technician FT 0.00 -1.00 Eliminated $- -$78,903 -$78,903
Parking Revenue Collector PT 0.00 +0.73 New $- $19,507 $19,507
Contracted Services New $- $60,000 $60,000
Software License Expense New $- $8,000 $8,000
Total -1.58 -1.20 -$114,363 $359 -$114,004
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The following is a 10-year history of the Transit property tax subsidy:
Fiscal Year Amount
2019 Budget $ 1,571 ,307
2018 Budget $ 1,572,825
2017 Actual $ 1,172,885
2016 Actual $ 942,752
2015 Actual $ 1,086,080
2014 Actual $ 833,302
2013 _ Actual $ 1 ,044,171
2012 Actual $ 717,611
2011 _ Actual $ 1 ,078,726
2010 Actual $ 1,161 ,393
2009 Actual $ 1 ,253,638
Water & Resource Recovery Center
This budget recommendation includes a staffing transition for the Water& Resource Recovery Center
which includes transitioning to one-shift operations with on-call status. The staffing transition includes the
elimination of the Assistant Plant Manager position (-1.0 FTE or 2,080 hours annually), the elimination of
the Maintenance Electrician position (-1.0 FTE or 2,080 hours annually), the elimination of one Plant
Operator position beginning July 1, 2018 (-0.50 FTE or 1,040 hours annually), the elimination of a second
Plant Operator Position beginning January 1, 2019 (-1.00 FTE or 2,080 hours annually), and the creation
of an Operations Supervisor position at GE-33D (+1.0 FTE or 2,080 hours annually). The Assistant Plant
Manager position is vacant and has been frozen since Fiscal Year 2018. The Maintenance Electrician
and both Plant Operator positions are currently filled and funded positions in Fiscal Year 2018. Recurring
funding also includes contracted electrician services ($42,000). Non-recurring funding is included for staff
training and the development of Standard Operating Procedures needed for one-shift operations
($50,000). A summary of the cost impact of the staffing transition plan is as follows:
Cost
Position Type FTE Change (Savings)
Assistant Plant Manager Full-Time -1.00 Eliminated 7/1/18 ($86,873)
Maintenance Electrician Full-Time -1.00 Eliminated 7/1/18 ($83,281)
Plant Operator Grade IV Full-Time -1.00 Eliminated 7/1/18 ($85,473)
Plant Operator Grade II Full-Time -0.50 Eliminated 1/1/19 ($39,660)
Operations Supervisor Full-Time +1.00 New 711118 +$91,893
Total Change -2.50 ($203,394)
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Housing Tax Increment Financing
Dubuque's four Housing Tax Increment Financing (TIF) Districts (Timber-Hyrst, English Ridge,
South Pointe, and Rustic Point) will generate an estimated $12.2 million from Fiscal Year 2018 -
2023, with at least 38.1% ($4.9 million) going to affordable housing needs, mainly through the
CHANGE program in partnership with groups like Community Housing Initiative, True North
Development Corporation, and the HEART Program.
The successful use of Housing TI Fs to create incentives for more residential development is
important to encourage population growth in the city limits and increase assessed values. It is
also important as the Dubuque Community School District is experiencing the fourth consecutive
year of declining enrollment and, at 10,507 students, is 227 (2.1 %) less than the near term peak
year of 10,734 in school year 2006/2007.
Council Priorities and Individual Projects
Dubuque city government is progressive and financially sound with residents receiving value for
their tax dollars and achieving goals through partnerships. The City of Dubuque government's
mission isto deliver excellent municipal servicesthat support urban living; contribute to an equitable,
sustainable city; plan for the community's future; and facilitate access to critical human
infrastructure.
Central Avenue Corridor Revitalization: Streetscape and Business Development
The Central Avenue Corridor Initiative is focused on the Central Avenue Corridor from 14th to 22nd
Street. The corridor features a wide variety of historic buildings offering commercial and retail
opportunities on the ground floor and residential spaces on upper floors. The goal of the initiative
isthe economic revitalization of the corridorthrough community engagement, educational outreach,
and community-informed streetscape and design. In 2017, the City entered into a collaborative
relationship with Iowa State University Extension and Outreach (ISUEO)to assist with the initiative.
ISUEO is assisting with outreach and community engagement efforts, asset mapping of buildings
and businesses in the corridor, and identification of additional partnership opportunities. In spring
2017, a design studio explored methods for using art and design to increase social capital in the
neighborhood.
The FY 2019 CIP includes funding for streetscape design and implementation forthe Central Avenue
Corridor($40,000); design will include intentional resident and business engagement and additional
assistance for building rehabilitation. In FY19, Community Development Block Grant(CDBG)funds
will be used to offer low- or no-interest loans to "microenterprise businesses" in the corridor. To
qualify, the business owner(s) must be low-to-moderate income. The Central Avenue Corridor
Initiative is funded for $40,000 in FY 2019 through FY 2022. A secondary capital improvement
project for the Central Avenue Corridor is the Central Avenue Streetscape Master Plan
Implementation and is funded in FY 2021 and 2022 ($20,000/yr).
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Citywide Flower Planting Program
In September 2017, an RFP for the Highway 20 corridor landscaping was let in order to provide
an assessment of the current landscaping and the creation of a new landscape plan for the corridor.
Estimates from the plan will give a baseline for future funds needed. An additional traffic study,
which included analysis ofviewshedscreated by plantings,was completed for Grandview Boulevard
by the Engineering Department in the summer of 2017. Staff will meet with the citizen group that
funded the perennial plantings along the boulevard to determine next steps. Two Assistant
Horticulturalist positions will be unfrozen during FY 2019.
In 2017-18, the Leisure Services Department will review major planting areas, newly-added
landscape areas, and upcoming new landscape projects, and develop recommendations for
maintenance, staffing, and contract needs. $53,000 is currently proposed for implementation of
Hwy 20 corridor plantings in FY2023, with additional funding in FY2024.
Community-Wide Solar Strategy
A community-wide strategy that seeks to advance solar installations at residential, commercial,
and utility scales was undertaken in 2017. The work builds on recommendations implemented
through the Iowa Economic Development Authority's Rooftop Solar technical assistance in 2016,
which aimed to reduce the soft costs of solar installations. Solar arrays were installed on the
rooftops of five of Dubuque's six fire stations. Combined, the stations will avoid emitting
approximately 3,740 tons of carbon dioxide over the life of the panels, or the equivalent of the
annual electric use of 425 homes. The project is expected to reduce the City's cost of each kWh
of electricity used by more than 30 percent.
Alliant Energy funded and completed construction of "solar gardens" at two sites in Dubuque to
form the largest solar development in the state of Iowa. This project was conducted in collaboration
with the City of Dubuque and Greater Dubuque Development Corporation. Over 15,000 solar panels
were installed on 21 acres of City-owned property north of Humke Road in Dubuque Industrial
Center West. Over 3,500 solar panels were installed on six acres owned by A.Y. McDonald Mfg.
Co. along U.S. 61/151 , near the 16th Street detention basin.
In 2018, a Communitywide Energy Strategy will expand this work in efforts to diversify the
community's energy profile while reducing greenhouse gas emissions from all sectors. An Energy
Strategy will provide supporting detail to the energy and building recommendations found in the
50% by 2030 Community Climate Action & Resiliency Plan. Municipal buildings will be assessed
and prioritized for energy efficiency and solar potential. Policies and existing funding sources will
be examined in order to identify opportunities to incent and/or require energy efficiency and
renewable energy improvements in existing buildings and new construction.
Comprehensive Plan: Adoption
After 13 months, over 12,500 ideas, and more than 6,000 residents and stakeholders engaged in
the Imagine Dubuque campaign, the Long Range Planning Advisory Commission reviewed and
recommended in August 2017, and the City Council adopted Imagine Dubuque 2037: A Call to
Action -2017 Comprehensive Plan in September 2017. Imagine Dubuque is the result of extensive,
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informed, inclusive, and tailored community engagement. Imagine Dubuque is the community's
plan. It reflects the values and goals of Dubuque residents and stakeholders.
The City Council will be asked to approve an improvement level budget request ($15,199)to retain
consultant services to serve as project manager, data manager, and facilitator, acting as the
independent backbone organization for a collective impact model to implement the 2017 Imagine
Dubuque Comprehensive Plan.
East-West Corridor Study: Implementation
The US Highway 20 corridor is the primary east-west route in the City of Dubuque and future traffic
volume projections indicate US Highway 20 alone will not provide sufficient capacity for east-west
travel in the City. Capacity along alternate east-west corridors will need to be improved to provide
connectivity between the western growth areas and the downtown urban core. In February 2012,
the City Council formally adopted the East-West Corridor Connectivity Study and directed City staff
to begin implementation plans. The study included recommended improvements supporting
complete streets concepts, multi-modal transportation, vehicle, pedestrian, bicycle, and
recreational improvements. In 2016, the Grandview Ave. and Delhi Street intersection was
converted to a roundabout. After an intensive community engagement and education process, the
conversion has decreased delay times and has been met with overwhelmingly positive support.
In August 2017, the City Council listed the East-West Corridor Capacity Improvement
Implementation as a "Top-Priority" in its 2017-2019 Goals and Priorities. In an effort to advance
this top priority, the City has already completed or will be completing the following improvements:
Project Year Cost
Property Acquisition 2016 $ 853,300
Grandview- Delhi Roundabout 2016 $ 827,000
Loras - Grandview Traffic Signals 2017 $ 370,300
University -Grandview Roundabout 2018 $ 1,200,000
Total Improvements To-Date $ 3,250,300
An additional $9,328,000 is programmed from FY 2019 through FY 2022 for the East-West
Corridor Study Implementation to fund improvements in the "Overlap Section" as described
below.
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The section of University Avenue, from Pennsylvania Avenue to Loras Boulevard, referred to as
the "Overlap Section" was recommended for converting the three intersections along University
Avenue to roundabouts. With funds programmed in FY2018-2019, the next steps in the design
development process are to complete the preliminary engineering and environmental (NEPA)
study phase for intersection capacity improvements along University Avenue at Loras Boulevard,
Asbury Road, and at Pennsylvania Avenue.
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Once the preliminary engineering and environmental(NEPA)study are completed, corridor impacts
will be identified, and property acquisition could begin in approximately FY2020/2021 and would
take approximately two years to complete.Once property acquisition is completed within the Overlap
Section, construction to convert the three intersections along University Avenue to roundabouts
could begin in FY2022 and would take approximately 2-3 years to complete. The City is in talks
with the Iowa Department of Transportation and the Federal Highway Administration attempting to
positively impact the time line.
Master Plan for Chaplain Schmitt Island
The Chaplain Schmitt Island Task Force, convened by the Dubuque Racing Association (DRA)and
chaired by former DRA Board Member Kevin Lynch, will make a presentation on the Chaplain
Schmitt Island Placemaking and Implementation Plan (RDG) to the City of Dubuque Park &
Recreation Commission and present to City Council for review and approval in the first and second
quarter of 2018 respectively. City staff will work with the task force to develop necessary agreements
to advance implementation of the plan. $45,000 has been recommended in FY 2022, to fund any
improvements that are identified in the final report to City Council.
Splash Pad
Many residents identified the need for more family-friendly recreation opportunities, like a splash
pad,during the Imagine Dubuque Comprehensive Planning process. In 2018, City staff will research
options, locations, and best practices, and engage the community. A final report will be prepared
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for the City Council, at which time direction will be sought on a project and budget proposal. No
funding is allocated for such a project at this time.
South Port Redevelopment Master Plan
Plans are being developed to continue Dubuque's riverfront development through the adaptive
reuse of a brownfield in the South Port. In July 2017, the City Council received an update from
consultants hired to identify development opportunities for the area. The conceptual plan was
designed to build on the success of the Port of Dubuque and developed based on the feedback of
Dubuque residents, South Port property owners and a local real estate firm. The plan includes a
waterfront hotel, boardwalk, playground, mixed-use condo, and retail building attached to a parking
garage, and a series of smaller residential buildings. No action has been taken on the plan, which
is just a concept. City staff submitted the concept to the EPA for review in the fall 2017.
Recommended South Port improvements have been submitted to the Army Corps of Engineers
and are included in the Corps's draft master plan of the 6.5 miles of Dubuque Mississippi River
Front. Identified improvements are recreational and navigational in nature. Also included in pending
Corps Critical Acquisition Position (CAP) request are funds to bury the flood wall and install a hike/
bike trail atop it. The request is pending Corps approval in 2018.
Crime Prevention Program Expansion
Key issues for this new City Council High Priority include early intervention, identification of best
practices and diversion options, identification and expansion of partnerships, data analysis to
analyze crime statistics and identify locations of high impact crimes, the CHANGE program,
restorative justice programs, and public information efforts to identify desired outcomes of existing
programs.
Efforts underway and under development that support this priority include:
• Police Calls/Crime Reports: The department is finalizing the 2017 crime statistics, and they
will be reported to City Council in the next quarter.
• President Obama's 21st Century Policing Task Force has not seen updates and is assumed
to be a defunct project. However, the Dubuque Police Department recognizes the positive
recommendations and continues to use it as a guide. Mental health and policing were topics
throughout the report, and the Dubuque Police Department will host a Crisis Intervention
Team training in 2018.
• The police department is exploring options in the juvenile justice system beyond traditional
court actions.
• The City is a member of the Government Alliance on Race and Equity (GARE), and the
Police Department actively participates.
• An additional command position is recommended in the Fiscal Year 2019 budget process,
increasing the authorized strength of the Police Department from 109 to 110 sworn positions.
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Chief of Police Mark Dalsing provides the following table comparing annual crime statistics:
"Part I" Crimes for Calendar Years 2012-2017
Compiled by the Dubuque Police Department
CY17% CY17% CY17%
Over/Under Over/Under Over/Under
Performance Measures CY12 CY13 CY14* CY15 CY16 CY17 Avg. CY16 Average Peak Year
No.of Crimes Against Persons 186 208 220 265 243 203 221 -16.5% -8.1% -23.40%
Murder 2 0 0 5 1 2 2 100.0% 0.0% -60.0%
Sexual Assault 43 38 61 80 98 90 68 -8.2% 32.4% -8.2%
Robbery 21 32 20 27 26 16 24 -38.5% -33.3% -50.0%
Aggravated Assault 120 138 139 153 118 95 127 -19.5% -25.2% -37.9%
No.of Crimes Against Property 1,992 1,791 1,662 1,953 1,875 1,667 1,823 -11.1% -8.6% -16.3%
Burglary 583 431 416 548 420 331 455 -21.2% -27.3% -43.2%
Burglary to Motor Vehicle 298 231 168 106 144 157 184 9.0% -14.7% -47.3%
Theft 1,080 1,103 1,035 1,245 1,235 1,116 1,136 -9.6% -1.8% -10.4%
Theft of Motor Vehicle 31 26 43 54 76 63 49 -17.1% 28.6% -17.1%
Total 2,178 1,999 1,882 2,218 2,118 1,870 2,044 -11.7% -8.5% -15.7%
*Switch to Sungard software August 2014
High Year
For Crimes Against Persons, the calendar year 2016 national average clearance rule is 45.6%,
while the Dubuque Police Department's calendar year 2017 clearance rate is 88.8%.
The City's network of security and traffic cameras grew to nearly 1,085 in 2017. As part of the
City's efforts to enhance street lighting, 11 new mid-block poles and LED lights were added to
the Washington Neighborhood in summer 2017 and 665 City-owned lights have been converted
to LED since May 2015. To improve the safety of Dubuque's housing stock, the International
Property Maintenance Code was adopted in July 2016 and applies to all property types and
provides a standard for property maintenance and minimum requirements. The budget proposal
requests an additional Housing Inspector position and a recommendation to City Council will ask
for a tiered rental inspection system. The number of confirmed "shots fired" calls were down
from 33 in 2015 to 26 in 2016 to 20 in 2017 (a 43% decrease from 2015). That number is still
not acceptable, but a reduction is an improvement.
Joe Noll, President of the Downtown Neighborhood Association wrote in December 2017:
"Our family has lived at 315 W, Locust for 45 years, raised five children and refused to
leave when there were major problems facing our neighborhood in the early 1990's.
Seeing flashing lights from multiple police cars were at least a weekly and sometimes a
daily occurrence. Many residents and property owners left because of a perceived safety
concerns. The neighborhood was seen as a "bad neighborhood" by those outside of it
but not by those who lived actually lived there.
The Downtown Neighborhood Council, now the Downtown Neighborhood Association,
was formed at that time to first tackle the problem of piles of trash from irresponsible
property owners and tenants where rodents took up residence. After that Community
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Oriented Police officers, first on foot then with bikes, put a lid on criminal activities,
disturbances and other matters, basically saving the neighborhood.
Today, 25 years later after hundreds of meetings, the involvement of neighbors, business
owners, responsible property owners and hundreds of hours of commitment by all City
Departments,. I can say that 2017 is the best year we have had since before the 1990's.
Room does not permit to list all those who deserve to be thanked.
SO THANK YOU ALL!!!
While our journey has improved challenges still remain."
Traffic/Security Camera System
In 2017, the City has installed 105 new cameras, along with 12.5 miles of conduit and 10.9 miles
of fiber that will allow for future camera installation. The following is a list of areas where
cameras have been added in FY17.
Bee Branch - 75 Cameras US 61/151 at Locust Connector
Washington Street Parking Lot US 61/151/Iowa Street
NW Arterial at Pennsylvania (Updated) HWY 20 at Century (Updated)
NW Arterial at Asbury (Updated) Jackson at 20th (Updated)
US 61 at Twin Valley (Updated) Central at 32nd (Updated)
US 61 at Maquoketa (Updated) Grandview at Delhi
NW Arterial at Chavenelle (Updated) HVVY 20 at NWA(Updated)
Jackson at 14th HVVY 20 at Devon (Updated)
Elm at 16th HVVY 20 at University (Updated)
Jackson Park - 13 Cameras JFK at Pennsylvania (Updated)
NW Arterial at JFK(Updated) HVVY 20 at VVacker (Updated)
NW Arterial at Plaza (Updated) University at Walnut
JFK at Pennsylvania (Updated) Loras at Grandview
JFK at Asbury (Updated) Loras at Montrose
US 61/151 at 9th Loras at Walnut
Elm at 14th Hill at 5th
Loras at Alta Vista
In addition to the new cameras, another 55 cameras where replaced because of newer
technology or camera failure. These newer cameras have a higher resolution and Wide
Dynamic Range feature which allows them to see better in all light conditions . Today, there are
572 Traffic/Security cameras recorded through the Traffic Operations Center in City Hall. The
remaining 513 cameras are recorded at various servers throughout the City. The recommended
budget has funding for additional cameras in the amount of$515,558 from FY 2019 through FY
2023. Additional funding is also allocated to the network of fiber optics that supports the camera
system; Traffic Signal Fiber Optics ($355,000).
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Dilapidated Buildings/Structures
A dilapidated building/structure identification and assessment program is recommended for funding
in the FY 2019 CIP. The total project cost is $123,900 split over three years. The project will result
in a complete inventory and evaluation of all buildings in the Greater Downtown Urban Renewal
District (GDURD). Essential to this project will also be the development of a revitalization plan for
buildings and areas identified in the assessment.
The project will be implemented in three phases: identification, evaluation, and planning. Phase
one will include the identification of all buildings and structures in the GDURD deemed to be
substandard and/or where an illegal activity or use is evident. The current property maintenance
code will be used as the principle standard by which conditions are assessed. In phase two, the
exterior of buildings and structures will be evaluated for their feasibility of rehabilitation. The third
and final phase ofthe project will be development ofthe revitalization plan.The plan will be organized
by building concentrations and neighborhood impact. The plan will involve inclusive community
engagement opportunities to help inform the community revitalization strategies, responsibilities,
and resources necessary to address dilapidated conditions and revitalization on a neighborhood
level.
Five Flags Center Study
CSL International was hired to complete the Five Flags Center study. The survey developed
received input from over 1000 people. An analysis of the existing operations was completed and
a review of industry trends and competitive/comparable facility analysis was completed. This
completed Phase I of the study which was the current assessment phase. The Phase II work has
been in process which includes event use levels analysis, market supportable program analysis
and design charrette ($50,000).
Once completed, the study will be presented to the Mayor and City Council in order to inform
direction regarding next steps.
Inclusive Dubuque: Continue Support & Participation
In 2017, network partners continued their growth in depth and breadth. The Peer Learning Council
has developed various toolkits and recently launched a nine-month series of peer learning
workshops, which bring together human resources and other professionals to learn about best
practices. The "I'm a Dubuquer" campaign featured 45 community members (and growing) of
various identities, telling their stories. The network also hosted community conversations, a
conference at the Growing Sustainable Communities Conference facilitated by the Government
Alliance on Race and Equity, and other opportunities to raise awareness and dialogue on equity
and inclusion.
As an Inclusive Dubuque member, the City's Equity Teams continued their work. The Core Team
worked with pilot departments to develop departmental equity plans; the Recruitment & Retention
Team disaggregated demographic data for employee recruitment and hiring practices, and the
Cash Out Team began working with FY18 Contracted and Purchase of Service partners to integrate
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equity into reporting requirements. Other equity work included the development of multi-lingual
resources for the public and introductory equity and inclusion training for all new City hires.
In the coming year, over 60 network partners will continue to work to address inclusion, equity, and
workforce priorities in the community. Sector working groups will work on advancing equity in
Housing/Neighborhoods, Education, Economic Opportunity, and Arts and Culture. An "Annual
Equity Report" will document outcomes in the community. Internally, City staff will integrate equity
into the organization's performance measures, focusing on equitable community engagement,
integration of equity into recruitment and retention efforts, use of an equity lens to evaluate Purchase
of Services and Contracted Services, and equitable service delivery.
Kerper Boulevard Revitalization
Kerper Boulevard connects the new Intermodal Transportation Center, Bee Branch Creek
Greenway, Sutton Pool, and 229-acre Kerper Boulevard Industrial Park. There are large vacant
and under-utilized buildings in the industrial park. The street design is a four-lane divided roadway
that lacks accommodations for multiple modes of transportation, and could benefit from a Compete
Streets re-design. In FY 2020, $50,000 is recommended in the CIP budget to fund a multidisciplinary
consultant team to work with City departments to create a comprehensive master plan that
incorporates community engagement and stakeholder input to identify strategies, catalytic actions,
and resources for revitalization. In 2017, fiber optics were extended along this corridor and in 2018
the $4 million replacement of most of the sanitary sewer will be conducted. A U.S. DOT Tiger grant
was submitted that would include a roundabout at Kerper and 16th Street to improve access.
Multicultural Family Center: Colts Building Direction & Funding,
In 2016,the City purchased the former Colts Building to allow for future expansion of the Mulitcultural
Family Center, which has quickly outgrown its space in the Ruby Sutton Building. Design for the
expansion was completed in 2017. The design includes a program/event/gathering space with two
openings to the current Center. It would add two multipurpose rooms with technology upgrades,
two smaller meeting rooms, a demonstration kitchen that could service larger events throughout
the building, as well as a supervisory area for the addition. Exterior improvements include
replacement of all the windows and improvement of the entry at Central and 10th. The project
would include new, fully accessible restrooms and facade maintenance. Additional phases could
include renovation of the 2nd floor of the original building and renovation of the office suite to include
another department. A $1 ,564,000 CIP exists in FY2019 to begin construction on the phased
project.
River Cruise Docking Facilities
There has been a significant delay in any plans for Viking River Cruises to begin operation on the
Mississippi River. It is now not clear when or if that service will begin, and no ship construction
has begun. Nonetheless, the City saw a significant increase in riverboat traffic to the Port with the
arrival of two new riverboats, America and Louisiane. Due to limited docking space in the Port and
docking scheduling conflicts, it is sometimes necessary for riverboats to dock at the Hawthorne
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Street landing located at AY McDonald Park. However, this site only works as a docking area for
some of the boats.
The 5-year CIP includes $150,000 for the City to design a new docking facility in Fiscal Year 2023.
Construction would begin in FY2024, if additional funding is identified.
Roosevelt Road Water Tower
The Roosevelt Street Water Tower project was identified as a solution to low operating water
pressures in Zone 2 of the distribution system. Zone 2 encompasses the area in and around
Roosevelt Street and Peru Road, including the Sky Blue Estates subdivision currently under
development and the existing Alpine Park development and Eagle Valley Subdivision. The City
has worked with Clapsaddle - Garber Associates, Strand Associates, Inc, and IIW, P.C., to identify
efficient and economic solutions to manage the low-pressure issues experienced in Zone 2, along
with a need to provide improved flows during fire flow conditions.
The new water tower would replace the existing Eagle Point Water Tower and other ancillary
water infrastructure ($2,700,000). Completion of a preliminary report is expected in March 2018
($465,000) with the bid for construction being issued in the summer of 2018. A final contract for
construction could be approved by the City Council in the third quarter of 2018.
Cities at Risk
Other than Des Moines (state capitol), Iowa City (University of Iowa), Ames (Iowa State
University), and possibly Cedar Falls/Waterloo (University of Northern Iowa), all cities in Iowa
are facing great risks, especially the smaller ones (and Dubuque is the smallest of the cities in
Iowa with a population over 50,000). The local private colleges might help to get Dubuque into
the category of the above named cities.
In the March 30, 2017, Des Moines Register article, "How Iowa's Midsize Cities Have Been Left
Behind," some current realities were detailed:
"Since the 1990s, midsize cities like Clinton, with a population of 26,000, have borne the
brunt of economic changes wrenching the nation and Iowa, including declines in
manufacturing and increased overseas competition, said David Peters, an
associate professor of sociology at Iowa State University who specializes in regional
and rural development.
Since the recession, metropolitan areas in Iowa have grown, gathering political
influence and government funding. But micropolitan areas, with 10,000 to 50,000
population, such as Clinton, Keokuk, Fort Madison and Mason City, have collectively
suffered population and job loss and have not recovered as well as their larger
counterparts, he said.
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A recent ISU report shows that, when grouped together and compared to rural and
metropolitan areas, Iowa's 17 micropolitan areas in 19 Iowa counties had:
• The lowest median household income in 2015 ($50,770).
• The highest poverty rates (13.8 percent).
• The lowest labor force participation (64.8 percent).
• The highest unemployment rate (4.2 percent).
Eleven of Iowa's micropolitan areas have lost jobs since 2008, and nine of them have
lost population. At the bottom of both categories is the Clinton micropolitan area, losing
7 percent of its jobs and 2.7 percent of its population.
From 2010 to 2016, Iowa's metropolitan areas grew 5.8 percent, while micropolitan
areas lost 1 .2 percent of their population."
Dubuque has been having tremendous success in the area of economic development. The use
of Tax Increment Financing as a tool to finance industrial land acquisition and development and
to create incentives for business to create jobs is working well. Since the late 1990s, the City
has acquired 1,257 acres of land for industrial park development and over 4,500 jobs exist in the
technology and industrial parks. These employees rent apartments, buy homes, shop at stores,
and patronize restaurants. All of the taxing bodies have benefited.
Total Personal Income is income earned by an area's workforce. A growing workforce and
growing wages are reasons for a rise in Total Personal Income for an area. Total Personal
Income rose by 4.3% in 2014 in the Dubuque area. That is not true everywhere. In fact,
Dubuque is surrounded by communities significantly underperforming the 2014 national growth
rate of 2.9%, including:
Janesville-Beloit, WI 0.5%
Mankato, MN 0.4%
Sioux City, IA 0.5%
Kankakee, IL -0.9%
Springfield, IL 0.3%
Carbondale-Marion, IL 0.4%
Peoria, IL -1 .1%
Danville, IL -3.9%
Bloomington, IL -3.2%
Grand Forks, ND -1 .4%
Grand Island, NE -0.5%
Terre Haute, IN 0.2%
Topeka, KS 0.5%
In 2017, Dubuque reached a record level of hotel occupancy, achieving 61 .5% following the
2016 report of 60.3%, as reported by the Dubuque Area Convention and Visitors Bureau. This
bodes well for the economy and for the possibility of future hotel development.
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The East Central Iowa Association of REALTORS® reports increases in residential home sales
each of the last four years as the number of homes sold in 2017 increased 7% over those sold in
2016, with1,483 homes sold in the Tri State area in 2017, up from 1,384 in 2016. The 2017
average sale price of homes increased 6%. The average sale price of homes sold in 2017 was
$189,676, compared to $178,376 in 2016.
East Central Iowa Multiple Listing Service's 2017 Residential Housing Report
# Of Sales in Avg. Sales Price
2017 1,483 $ 189,676
2016 1,384 $ 178,736
Dubuque Main Street provided the following information on progress in downtown Dubuque:
SUSTAINA.
L DUBUQUE Downtown Revitalization
viable • livable • equ+Eable
Improvement 1985 through % since 2000
December 2017
New Construction $246 million 92% ;�
BuildingRehabilitation yl �
$379 million 90%
Real Estate Sales $177 million 74% DUBUQUE
MAIN
Public Improvements $128 million 94%
STREET
Net New Jobs +4,222 69% 1 1
Total Improvements: $754 million 92%
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While Dubuque is experiencing success in economic development, there are communities
across the country and in the Midwest that are having the opposite experience. According to
24/7 Wall Street the following is the top 25 cities for losing jobs in 2016, of the 75 communities
that experienced job loss:
Rank City Employment Change
25 Lynchburg, VA -1.41%
24 Bloomington, IL -1.41%
23 Elmira, NY -1.45%
22 Joplin, MO -1.54%
21 Vineland-Bridgeton, NJ -1 57%
20 Duluth, MN-WI -1.67%
19 Alexandria, LA -1.67%
18 Decatur, IL -1.68%
17 Williamsport, PA -1.82%
16 Fairbanks, AK -1.86%
15 Topeka, KS -1.96%
14 Binghamton, NY -1.98%
13 Mankato, MN -2.01%
12 Staunton-Waynesboro, VA -2.02%
11 Tulsa, OK -2.03%
10 Manhattan, KS -2.03%
9 Cheyenne, WY -2.07%
8 Lawton, OK -2.07%
7 Carbondale-Marion, IL -2.15%
6 Oklahoma City, OK -2.20%
5 Mansfield, OH -2.33%
4 Shreveport-Bossier, LA -2.35%
3 Houma-Thibodaux, LA -3.74%
2 Casper, WY -3.77%
1 Lafayette, LA -4.46%
24/7 Wall Street reports that "Half of the 20 fastest shrinking cities are in the so-called Rust Belt
of the United States...encompassed parts of the Northeastern and Midwestern United States.."
Government Transparency
In November 2017, City staff hosted an evening public budget input meeting at the City Council
Chambers in the Historic Federal Building. During November 2017, an online survey was made
available to the public to submit budget input.
By December 1 , 2017, a total of 43 community members shared their budget input. Out of the 30
community participants, staff reached 17 individuals through the in-person meetings and 26
participants took the online survey.
The input provided has been analyzed by City staff and evaluated by the City Manager for
inclusion in the Fiscal Year 2019 budget recommendation as deemed appropriate, consistent
with City Council priorities.
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During Fiscal Year 2016, the City launched a web-based open data platform which can be found
at http://dollarsandcents.cityofdubuque.orq. The City of Dubuque's Open Budget application
provides an opportunity for the public to explore and visually interact with Dubuque's operating
and capital budgets. This application is in support of the five-year organizational goal of a
financially responsible city government and high-performance organization and allows users with
and without budget data experience, to better understand expenditures in these categories.
During Fiscal Year 2017, an additional module was added to the open data platform which
included an interactive checkbook which will allow citizens to view the City's payments to
vendors. The final step will be adding performance measures to the open data platform to allow
citizens to view outcomes of the services provided by the City.
Conclusion
There will be six City Council special meetings prior to the adoption of the Fiscal Year 2018
budget before the state mandated deadline of March 15, 2018.
I want to thank Budget Director Jennifer Larson, Assistant City Manager Cori Burbach, Senior
Budget Analyst Alexis Steger, Public Information Officer Randy Gehl, Office Manager Juanita
Hilkin, Secretary Stephanie Valentine and Communications Assistant Natalie Riniker, for all their
hard work and dedication in preparation of this budget recommendation.
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Michael C. Van Milligen
MCVM:jh
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ATTACHMENT I
https://www.worldhealth.net/news/predictions-technology-health/
INDUSTRY NEWS ARTIFICIAL INTELLIGENCE BIOTECHNOLOGY LONGEVITY
Predictions in Technology and Health
1 year, 7 months ago
Posted on Jun 06,2016,6 a.m.
Did you think in 1998 that 3 years later you would never take pictures on paper film
again? What happened to Kodak will happen in a lot of industries in the next 10 years -
and most people don't see it coming.
INTRODUCTION:by Dr.Ronald Klatz MD,DO: We live in a miraculous time, due to the
rapid growth of new technology. For those following the anti-aging lifestyle, life
expectancy is increasing by three months per year. People utilizing the anti-aging tenets
for health are seeing a life expectancy of 94, and that rate is also growing.Just as we
predicted 25 years ago, medicine is now at last finally transforming from the treatment
of illness and disease into preventative measures and the extension of the human
lifespan. Here are Dr. Robert Goldman's predictions of what we can expect in the future
and the impact that it will have on our lives.
FUTURE PREDICTIONS: In 1998, Kodak had 170,000 employees and sold 85% of all photo
paper worldwide. Within just a few years, their business model disappeared and they
went bankrupt. What happened to Kodak will happen in a lot of industries in the next 10
years - and most people don't see it coming. Did you think in 1998 that 3 years later you
would never take pictures on paper film again? Yet digital cameras were invented in
1975. The first ones only had 10,000 pixels, but followed Moore's law. So as with all
exponential technologies, it was a disappointment for a long time, before it became way
superior and got mainstream in only a few short years. It will now happen with Artificial
Intelligence, health, autonomous and electric cars, education, 3D printing, agriculture
and jobs. Welcome to the 4th Industrial Revolution. Welcome to the Exponential Age.
Software will disrupt most traditional industries in the next 5-10 years. Uber is just a
software tool, they don't own any cars, and are now the biggest taxi company in the
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world. Airbnb is now the biggest hotel company in the world, although they don't own
any properties.
Artificial Intelligence: Computers become exponentially better in understanding the
world. This year, a computer beat the best Go player in the world, 10 years earlier than
expected. In the US,young lawyers already don't get jobs. Because of IBM Watson,you
can get legal advice (so far for more or less basic stuff)within seconds,with 90%
accuracy compared with 70%accuracy when done by humans. So if you study law, stop
immediately. There will be 90% fewer lawyers in the future, only specialists will remain.
Watson already helps nurses diagnosing cancer,4 time more accurate than human
nurses. Facebook now has a pattern recognition software that can recognize faces better
than humans. By 2030, computers will become more intelligent than humans.
Autonomous Cars: In 2018 the first self-driving cars will appear for the public. Around
2020, the complete industry will start to be disrupted. You don't want to own a car
anymore. You will call a car with your phone, it will show up at your location and drive
you to your destination. You will not need to park it, you only pay for the driven
distance and can be productive while driving. Our kids will never get a driver's license
and will never own a car. It will change the cities, because we will need 90-95% fewer
cars for that. We can transform former parking space into parks. 1.2 million people die
each year in car accidents worldwide. We now have one accident every 100,000 km,with
autonomous driving that will drop to one accident in 10 million km. That will save a
million lives each year.
Most car companies may become bankrupt. Traditional car companies try the
evolutionary approach and just build a better car, while tech companies (Tesla, Apple,
Google)will do the revolutionary approach and build a computer on wheels. I spoke to
a lot of engineers from Volkswagen and Audi; they are completely terrified of Tesla.
Insurance Companies will have massive trouble because without accidents, the insurance
will become 100x cheaper. Their car insurance business model will disappear.
Real Estate will change. Because if you can work while you commute, people will move
further away to live in a more beautiful neighborhood.
Electric Cars won't become mainstream until 2020. Cities will be less noisy because all
cars will run on electric. Electricity will become incredibly cheap and clean: Solar
production has been on an exponential curve for 30 years, but you can only now see the
impact. Last year, more solar energy was installed worldwide than fossil. The price for
solar will drop so much that all coal companies will be out of business by 2025.
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With cheap electricity comes cheap and abundant water. Desalination now only needs
2kWh per cubic meter. We don't have scarce water in most places,we only have scarce
drinking water. Imagine what will be possible if anyone can have as much clean water as
he wants, for nearly no cost.
Health:There will be companies that will build a medical device (called the "Tricorder"
from Star Trek) that works with your phone,which takes your retina scan,your blood
sample and you breathe into it. It then analyses 54 biomarkers that will identify nearly
any disease. It will be cheap, so in a few years everyone on this planet will have access to
world class medicine, nearly for free.
3D printing:The price of the cheapest 3D printer came down from $18,000 to $400
within 10 years. In the same time, it became 100 times faster. All major shoe companies
started 3D printing shoes. Spare airplane parts are already 3D printed in remote airports.
The space station now has a printer that eliminates the need for the large number of
spare parts they used to have in the past.
At the end of this year, new smart phones will have 3D scanning possibilities. You can
then 3D scan your feet and print your perfect shoe at home. In China, they already 3D
printed a complete 6-storey office building. By 2027, 10% of everything that's being
produced will be 3D printed.
Business Opportunities: If you think of a niche you want to go in, ask yourself: "in the
future, do you think we will have that?" and if the answer is yes, how can you make that
happen sooner? If it doesn't work with your phone, forget the idea. And any idea
designed for success in the 20th century is doomed in to failure in the 21st century.
Work: 70-80% of jobs will disappear in the next 20 years. There will be a lot of new jobs,
but it is not clear if there will be enough new jobs in such a small time.
Agriculture: There will be a $100 agricultural robot in the future. Farmers in 3rd world
countries can then become managers of their field instead of working all days on their
fields. Agroponics will need much less water. The first Petri dish produced veal is now
available and will be cheaper than cow-produced veal in 2018. Right now, 30% of all
agricultural surfaces is used for cows. Imagine if we don't need that space anymore.
There are several startups that will bring insect protein to the market shortly. It contains
more protein than meat. It will be labeled as "alternative protein source" (because most
people still reject the idea of eating insects).
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There is an app called "moodies"which can already tell in which mood you are. Until
2020 there will be apps that can tell by your facial expressions if you are lying. Imagine a
political debate where it's being displayed when they are telling the truth and when not.
Bitcoin will become mainstream this year and might even become the default reserve
currency.
Longevity: Right now, the average life span increases by 3 months per year. Four years
ago, the life span used to be 79 years, now it's 80 years. The increase itself is increasing
and by 2036, there will be more than one year increase per year. So we all might live for
a long long time, probably way more than 100.
Education: The cheapest smart phones are already at $10 in Africa and Asia. Until 2020,
70% of all humans will own a smart phone. That means, everyone has the same access
to world class education.
Robert M.Goldman MD, PhD, DO, FAASP
Co-Founder & Chairman-World Academy of Anti-Aging Medicine
World Chairman-International Medical Commission
Co-Founder & Chairman of the Board-A4M
Founder& Chairman-International Sports Hall of Fame
President Emeritus-National Academy of Sports Medicine (NASM)
Chairman-U.S. Sports Academy's Board of Visitors
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IN„
IEast Central Iowa
Association of
REALTORS'
February 22, 2018
City Manager Mike Van Milligan
50 West 13th St. Second Floor
Dubuque, IA 52001
Dear City Manager Van Milligan,
The Board of Directors of the East Central Iowa Association of REALTORS® (ECIAR) is
supportive of the proposed City Housing and Community Development budget that would set
aside city funds to reimburse landlords for damage caused by tenants who receive rent subsidies.
ECIAR is deeply aware that fifty years after the passage of the Fair Housing Act our area still
remains much too segregated by race and national origin. REALTORS®have endeavored to
change business practices and implement training to address discrimination at the transaction.
However, many factors contribute to continued segregation in housing and limit many area
residents housing choices. Last year Dubuque City Council members were asked to consider
requiring landlords to accept Section 8 housing vouchers by making Source of Income a
protected housing class. We disagreed then and still do not believe this has any sustained impact
on segregation. We believe that City Housing, the Dubuque Area Landlord Association and other
interested parties should continue to work together to address continued segregation and should
measure progress being made,but should not dictate specific solutions or policies.
We believe the establishment of a city supported damage reimbursement fund is a good first step
that would help provide incentive for landlords to accept Section 8 housing vouchers as well as
bring to light th extent of property damage by section 8 housing voucher recipients to determine
if it is a real problem or just perception.
We applaud the City of Dubuque for its efforts to address housing needs for low income
individuals and families through the many programs and services currently available and
welcome the opportunity to work with the City of Dubuque, Inclusive Dubuque, City Housing
and other interested partners to explore additional options and opportunities to meet the housing
needs of Dubuque residents.
Respectfully,
Members of the East Central Iowa Association of REALTORS®Board of Directors
1828 Carter Road, Dubuque, IA 52001