Set Public Hearing for Resolution Establishing Maximum Property Tax Dollars for Fiscal Year 2022_Initiate Copyrig hted
February 15, 2021
City of Dubuque Action Items # 1.
City Council Meeting
ITEM TITLE: Set Public Hearing for Resolution Establishing Maximum Property Tax
Dollars for Fiscal Year 2022
SUM MARY: City Manager recommending the Fiscal Year 2022 Resolution
Establishing Maximum Property Tax Dollars be set for public hearing
on March 1, 2021.
RESOLUTION Setting a public hearing on the Fiscal Year 2022
maximum property tax dollars for the affected tax levy total
SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for March 1,
DISPOSITION: 2021Suggested Disposition:
ATTACHMENTS:
Description Type
MVM Memo_UPDATED 2/15/21 City Manager Memo
Staff Memo UPDATED 2/15/21 Staff Memo
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Notice of Public Hearing Supporting Documentation
FY22 Budget and Fiscal Policy Guidelines Supporting Documentation
Dubuque
THE CITY OF �
ui-Aseria cih
DuB E , . � . ,
� II �
Maste iece on tj2e Mississi i zoo�•zoiz•zois
YP pp zoi�*zoi9
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Revised Fiscal Year 2021 Revenue Projections and Fiscal Year 2022
Property Tax Rate Recommendation
DATE: February 15, 2021
Finance and Budget Director Jennifer Larson is recommending a revised Fiscal Year
2022 property tax rate recommendation to further reduce the impact on the average
residential homeowner.
Based on the Fiscal Year 2021 updated revenue and expense projections for the
General Fund, there is an estimated balance of just over $400,000 in available one-time
resources without using any of the general fund reserves. The revised recommendation
for Fiscal Year 2022 is to fund the non-recurring improvement packages in the amount
of $154,347 from the Fiscal Year 2021 estimated revenue balance of$400,000. This
change would result in a property tax rate reduction from $10.0496 per $1,000 of
assessed valuation to $9.98607. The revised property tax rate recommendation of
$9.98607 would have the following impact on the different classes of property:
Table 11: FY22 Revised Property Tax Recommendation
Average Property % Property Tax
Tax Cost Change Cost Change
Pro ert T pe from FY21 from FY21
Residential $7.55 0.98%
Commercial $20.02 0.63%
Industrial $43.77 0.93%
Multi-Residential $127.79 6.74%
Current Property Next Year's
Tax Rate Property Tax Rate % Change
$10.1440 $9.98607 1 .56%
I concur with the recommendation and respectfully recommend Mayor and City Council
set a public hearing for March 1, 2021 on this lower property tax rate.
�
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Budget Director
2
Dubuque
THE CITY OF �
All•A�eri�a Ciry
Du B E ����.,.��a��,.���
� � � ►
� �
Maste iece on the Mississi i zoo�.zo��•zo�3
� pp 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Revised Fiscal Year 2021 Revenue Projections and Fiscal Year 2022 Property
Tax Rate Recommendation
DATE: February 15, 2021
Fiscal Year 2021 Revenue
The Fiscal Year 2021 General Fund revenue projections have been updated based on
information received to-date. The revised revenue losses as compared to September 2, 2020
estimated losses are as follows:
Table 1: Fiscal Year 2021 General Fund Revenue Estimates
FY21 FY21
2/10/20 Estimated 9/2/20 Estimated
Fiscal Year 2021 Revenue Surplus Revenue Surplus
General Fund Revenue (Loss) (Loss)
State Coronavirus Relief Fund Reimbursement , $1,375,656 $0
Ambulance Ground Emergency Medical Transport $417,408 $0
Property Taxes ($210,433) ($210,433)
DRA Rent ($612,199) ($840,523)
Gaming Taxes ($44,380) ($44,380)
Hotel/Motel Tax ($381,084) ($658,887)
Local Option Sales Tax (50% Operating) $952,207 $147,155
Electric Franchise Fees ($112,567) ($125,000)
Gas Franchise Fees ($45,347) ($49,518)
Investment Earnings ($248,573) ($150,000)
lowa District Court Fines ($72,855) ($85,590)
Camping/Pavilion Fees $0 ($60,000)
Recreation Programs/Golf/Marina $214,167 $214,167
Building Permits ($233,587) ($125,000)
Housing Inspections ($74,216) ($100,000)
Rental Licenses ($71,524) $0
Zoning Inspections ($6,748) ($15,000)
Business Licenses ($121,934) ($25,000)
Total General Fund Operating Revenue Surplus (Loss) $723,991 ($2,128,009)
State Coronavirus Relief Fund Reimbursement
Governor Kim Reynolds allocated $125 million to the Local Government Relief Fund for
reimbursements to local governments for direct expenses incurred in response to the COVID-19
emergency. $100 million for reimbursement will be divided between eligible cities and counties
by 2019 estimated population. $25 million will be used to cover the local government portion of
the FEMA match through the lowa Department of Homeland Security and Emergency
Management. The City of Dubuque's allocation of $1,375,656 was received on November 23,
2020 and was used to reimburse 25% of Public Health and Public Safety salaries from the
period of March through July 2020.
Ambulance Ground Emergency Medical Transport
Ground Emergency Medical Transport (GEMT) is a federally funded supplement to state
Medicaid payments to EMS providers transporting Medicaid patients which began in FY 2020.
The FY 2021 Adopted budget of $216,837 was based on approximately 800 GEMT eligible calls
and a Dubuque Fire Department specific rate of $275.95 per call. After the Fiscal Year 2021
budget was adopted, the Fire Department filed cost reports for 2018, 2019, and 2020 for
uncompensated costs related to Medicaid calls. An exception to the policy for previously filed
cost reports was approved during FY 2021, which increased the reimbursement rate from
$275.95 per call to $1,183.97 per call. The revised FY 2021 budget for GEMT revenue is
$947,176 based on 800 GEMT eligible calls and the higher reimbursement rate. The City's local
match percentage is 38.25% or $362,295 which results in net GEMT revenue of $584,881 for
Fiscal Year 2021. The net increase in revenue in Fiscal Year 2021 is $417,408.
Dubuque Racing Association Rent
Dubuque Racing Association Rent has continued to be strong for the first six months of Fiscal
Year 2021. The month of January 2021 saw a decline of 24% from the prior year. A 15%
reduction was used for the DRA rent for the remainder of the fiscal year, which results in a
projected revenue loss of $612,199. A 24% revenue loss was previously projected.
Hotel/Motel Tax
Hotel/Motel Tax projected loss has decreased from $658,887 to $381,084 due to the City
receiving the second quarterly payment for FY21. Based on Fiscal Year 2019 actual Hotel/Motel
revenues for the last two quarters of the fiscal year, it is projected that the City will receive 40%
less than FY 2019 Actual receipts.
Local Option Sales Tax — 50% Operating
The lowa Department of Revenue released the Fiscal Year 2021 Local Option Sales Tax
estimated payments on August 18, 2020. In addition, the City received the annual reconciliation
payment for Fiscal Year 2020 on November 17, 2020 in the amount of $1,610,103. This is the
largest reconciliation payment that the City of Dubuque has ever received. The lowa Department
of Revenue has indicated that the reconciliation payment for Dubuque was large because the
total LOST receipts for FY20 for Dubuque County exceeded their estimates. This was the case
2
in quite a few lowa counties in FY20. The law change that was effective July 1, 2019 which
required remote sellers that exceed a certain sales revenue to charge lowa sales tax, including
local option sales tax, the same as retailers with a physical presence in lowa. This law change
most likely played a role in the increased LOST receipts in FY20. The reconciliation payment is
only evidence of receipts exceeding the lowa Department of Revenue's estimates. The year-to-
year increase in total Local Option Sales Tax receipts would be more illustrative of the actual
impact of the online sales tax law changes.
The lowa Department of Revenue does not have data on actual online sales because those
sales are reported by retailers in the same manner as in-person sales. The lowa Department of
Revenue has done some work in try to estimate the impact of collections from online sales, and
it is apparent their estimates of the impact from Senate File 2417 in 2018 have been surpassed
by actual receipts, but they do not have firm data to support that.
The LOST estimates from the lowa Department of Revenue and the actual reconciliation
payment as compared to the City of Dubuque's FY 2021 budget are as follows:
Table 2: FY 2021 Local Option Sales Tax Estimates
IDOR
Period Estimates City Budget Difference
July 2020 $761,097 $761,097 $0
August— October $2,505,791 $2,293,173 +$212,618
2020
Nov 2020- Jan2021 $2,549,809 $2,345,757 +$204,052
February— Apri12021 $2,145,286 $1,982,617 +$162,669
May— June2021 $1,678,204 $1,552,638 +$125,566
FY20 Reconciliation $1,610,103 $410,595 +$1,199,508
Payment
Total LOST $9,640,187 $9,345,876 $1,904,413
Investment Earnings
Investment earnings revenue loss was increased based on actual receipts in July 2020 through
January 2021. It is estimated that the City will receive 37% less in investment earnings the
remainder of the fiscal Year.
Camping Fees
Based on the first four months of camping revenue in Fiscal Year 2021, it is expected that the
City will meet the Camping Fees revenue budget.
3
Building Permits
Building Permit revenue loss was increased based on the first seven months of actual history. It
is projected that building permit revenue will be 12% less than prior year actual receipts for the
remainder of the fiscal year.
Rental Licenses
Rental licenses have been projected to be 44% less than prior year receipts based on the first
seven months of receipt history.
Business Licenses
The first seven months actual history of Business Licenses receipts has been approximately
41% less than the same period in Fiscal Year 2020. It is projected that the remainder of the fiscal
year will be 41% less than Fiscal Year 2020 actual based on the average reduction of receipts in
the first 7 months.
Other Major Funds Revenue
The following table shows the Fiscal Year 2021 revised estimated revenue losses as compared
to the September 2, 2020 estimated losses for DRA Distribution and Local Options Sales Tax
(50% Capital):
Table 3: DRA Distribution and Local Option Sales Tax (50% Capital)
FY21 FY21
2/10/21 9/2/20
Estimated Estimated
Other Major Funds Revenue Revenue
Surplus (Loss) Surplus (Loss)
DRA Distribution (100% Capital) ($244,777) ($1,599,417)
Local Option Sales Tax (50% Capital) $952,207 $147,155
Total DRA Distribution/LOST 50% $707,430 ($1,452,262)
The surplus in Local Option Sales Tax (50% Capital) can be used to fund the DRA Distribution
capital projects.
Table 4: Road Use Tax and Enterprise Funds
FY21 FY21
2/10/21 9/2/20
Estimated Estimated
Other Major Funds Revenue Revenue
Surplus (�oss) Surplus (�oss)
Road Use Tax $15,207 ($670,129)
Parking' � ($1,326,731) ($1,039,542)
WaterZ � ($97,000) ($97,000)
Sanitary Sewer2 � ($141,000) ($141,000)
Stormwater2 ($13,000) ($13,000)
RefuseZ ($29,000) ($29,000)
4
'Analysis has been done by the City's Financial Advisor, Tionna Pooler from Independent Public
Advisors, on the capacity of the Greater powntown TIF district to cover the projected Parking
Fund deficit. The analysis perFormed indicates that the Greater powntown TIF district does have
capacity to cover a deficit up to $1.7 million in the Parking Fund.
zRevenue losses in the Water, Sanitary Sewer, Stormwater, and Refuse funds will be covered by
expense reductions in those funds.
Sales Tax Increment— Flood Mitigation Program
The City's sales tax increment revenue related to the Flood Mitigation Program has been
reduced since the beginning of the pandemic. While the City is projecting that the sales tax
increment revenue will rebound in Fiscal Year 2021, the payments from the State of lowa are
received 6 months after the quarter ends and the accuracy of the projections will not be known
until early in Fiscal Year 2022. Hopefully, additional State and Federal funding can be obtained
to fund any shortfall in the sales tax increment revenue.
Dubuque Racing Association Distribution
The City received notification of the actual distribution payment that will be received from
Dubuque Racing Association in November 2020. The actual distribution payment of$1,992,613
is $244,777 less than Fiscal Year 2021 budget of $2,237,390.
Local Option Sales Tax — 50% Capital
The lowa Department of Revenue released the Fiscal Year 2021 Local Option Sales Tax
estimated payments on August 18, 2020. In addition, the City received the annual reconciliation
payment for Fiscal Year 2020 on November 17, 2020 in the amount of $1,610,103. $952,206 of
funding above the FY21 budget is available to help fill the funding shortfall for capital projects.
Additional information on the local option sales tax estimates can be found on pages 2-3.
Road Use Tax
The Road Use Tax revenue projections have been updated to be slightly better than FY21
budget based on actual revenue received through January 2021 and a 3.5% reduction for the
remainder of the fiscal year.
Parking Fund
The Parking revenue loss for July through January 2021 is $913,892. The estimated Parking
revenue loss has increased previous estimates and will be updated as there are more months of
revenue collection history. Most companies have employees still working remotely which impacts
parking revenues.
5
Water, Sanitary Sewer, Stormwater and Refuse Funds
Water, Sanitary Sewer, Stormwater and Refuse estimated revenue losses have remained the
same based on the City continuing to not assess late fees, penalties or do service shut offs.
Customers with delinquent accounts have been offered payment plan options for any delinquent
balance that occurred after March 1, 2020.
Fiscal Year 2020 and 2021 Expense
Table 5: Fiscal Year 2020 and 2021 COVID-19 Expense
FY21
FY20 Expense
COVID-19 Expense Expense To-Date
COVID-19 Employee Leave $460,160 $0
Transit Operations/Equipment/PPE $1,197,800 $935,322
Non-Congregate Shelter/Rent & Utility Assistance $267,252 $615,118
Five Flags Subsidy $200,000 $0
Remote Work Telecommunications $20,227 $58,992
Police Portable Radio, Reporting Software, Webcam, and PPE $62,605 $0
Building Disinfection $52,101 $0
Fire Decontamination System and PPE $45,029 $0
PPE $8,275 $4,219
E911 Overtime — Shift Coverage $0 $11,673
Office Modifications $2,390 $8,005
Translation Services of COVID-19 Information $6,442 $2,051
Remote Work Supplies $2,779 $198
Vehicle Interior Modifications $1,291 $352
Cleaning Equipment � $106 $1,345
Park Modifications $438 $643
Total COVID-19 Expense to-Date $2,326,895 $1,637,918
The Fiscal Year 2020 COVID-19 expenses have been covered by CARES Act funding for
Transit and Community Development Block grant as well as other savings realized in the
General Fund in FY2020. In Fiscal Year 2021, the CARES Act funding for Transit and
Community Development Block Grant will cover the Transit and Non-Congregate Shelter/Rent &
Utility Assistance expenses. The remaining expenses to-date of $87,478 in Fiscal Year 2021 will
need to be covered by general fund revenue identified in Table 1. In addition, ongoing remote
work telecommunications and PPE cost of$30,000 for the remainder of Fiscal Year 2021 will
need to be covered by general fund revenue identified in Table 1. Of the $723,991 general fund
revenues estimated to be available in Table 1, $117,478 in expenses will need to be
covered, which would leave a balance of$606,513.
6
COVID-19 Course of Action
A hiring freeze on most positions that are vacant or become vacant in Fiscal Year 2021 was
initiated during Fiscal Year 2021. After learning that some of the City's revenues were
perForming better than initially projected (Local Option Sales Tax, Ambulance Revenue) and
receiving some State assistance, the following positions that were frozen have been unfrozen:
Table 6: Unfrozen Positions
Vacant Realized
Department Fund FTE Type Position Date FY21
Savings
Building Services General 1.00 Full-Time Facilities Manager 4/10/2020 $67,587
City Manager's General 1.00 Full-Time Assistant City 09/11/2020 $63,663
Office Manager
Engineering General 0.87 Full-Time Traffic Engineer 1/1/2019 $39,597
Engineering General 0.90 Full-Time Engineering Assist II 5/1/2018 $31,339
ROW Tech
Fire General 1.00 Full-Time Fire Fighter 10/5/2019 $44,648
Fire General 1.00 Full-Time Fire Fighter 4/1/2020 $44,648
Housing General 0.50 Full-Time Assistant Director 11/1/2019 $28,167
Police General 1.00 Full-Time Police Officer 7/1/2020 $49,136
Police General 1.00 Full-Time Police Officer 7/1/2020 $49,136
Police General 1.00 Full-Time Police Officer 7/1/2020 $49,136
Police General 1.00 Full-Time Police Officer 7/1/2020 $49,136
Recreation General 0.09 Seasonal Golf Course Laborer 6/30/2019 $2,573
General Fund Total $518,766
Public Works Road Use 1.00 Full-Time Utility Worker 03/23/20 $8,978
Tax
Public Works Road Use 1.00 Full-Time Utility Worker 4/1/2020 $8,109
Tax
Public Works Road Use 1.00 Full-Time Utility Worker 4/1/2020 $8,109
Tax
Public Works Road Use 1.00 Full-Time Utility Worker 3/16/2020 $9,600
Tax
Road Use Tax Fund Total $34,796
Housing CDBG 0.25 Full-Time Assistant Director 11/1/2019 $14,087
CDBG Fund Total $14,087
Housing Section 8 0.25 Full-Time Assistant Director 11/1/2019 $ 14,087
Section 8 Fund Total $14,087
Engineering Internal 0.13 Full-Time Traffic Engineer 1/1/2019 $6,005
Service
Engineering Internal 0.10 Full-Time Engineering Assist II 5/1/2018 $3,935
Service ROW Tech
Internal Service Fund Total $9,940
Total Realized Savings - All Funds $591,676
7
The following positions will continue to be frozen and will be re-evaluated in November 2021:
Table 7: Frozen Positions
Vacant FY21
Department Fund FTE Type Position Date Savings
Building Services General 1.00 Full-Time Custodian 7/1/2020 $56,091
City Manager's General 1.00 Full-Time Neighborhood 12/31/20 $49,191
Office Specialist
City Manager's General 0.25 Part-Time Scanning Intern 8/14/2020 $6,975
Office
Economic General 0.25 Seasonal Intern 8/3/2019 $7,912
Development
Fire General 1.00 Full-Time Fire Fighter 4/1/2020 $76,540
Library General 1.00 Full-Time Youth Services 7/1/20 $68,479
MFC General 0.48 Part-Time Receptionist 4/1/2020 $20,985
Parks General 1.00 Full-Time Maintenance Worker 7/1/2019 $64,280
Planning General 0.38 Seasonal Intern 1/24/2020 $9,490
Police General 1.00 Full-Time School Resource 7/1/2020 $44,161
Officer
Police General 0.62 Part-Time Records Clerk 7/1/2019 $9,603
Public Works General 1.00 Full-Time Traffic Signal Tech II 7/1/2020 $91,234
Recreation General 1.00 Full-Time Facility Supervisor 7/1/2019 $70,004
General Fund Total $574,945
Engineering Sanitary 0.05 Full-Time Civil Engineer 07/01/2020 $5,404
Sewer
WRRC Sanitary 1.00 Full-Time WRRC Operator 6/14/2019 $60,139
Sewer
WRRC Sanitary 1.00 Full-Time Laboratory Supervisor 1/10/2020 $78,025
Sewer
Sanitary Sewer Fund Total $143,568
Engineering Stormwater 0.52 Full-Time Civil Engineer 7/1/2020 $16,992
Stormwater Fund Total $16,992
Water Water 1.00 Full-Time Water Distrib Maint. 3/9/2020 $59,694
Worker
Water Water 1.00 Full-Time Water Treatment 1/1/2019 $82,311
Plant Operator
Water Fund Total $142,005
Engineering Internal 0.43 Full-Time Civil Engineer 7/1/2020 $45,659
Service
Engineering Internal 0.50 Full-Time Camera Systems 07/01/2020 $45,659
Service Technician
I Internal Service Fund Total $91,318
� Total Frozen Positions - All Funds $968,828
All General Fund frozen positions will be kept frozen and re-evaluated in November 2021 after
the Local Option Sales Tax reconciliation payment is received. In addition, any new General
Fund positions approved in the Fiscal Year 2022 budget will be recommended to be kept frozen
until November 2021. Frozen positions that are not General Fund will be re-evaluated during
Fiscal Year 2021.
8
All travel budgets (conferences, education and training, city business travel) for all departments
have been frozen unless the conferences or education are needed to retain job certifications,
required for accreditation, the registration has been already paid, the employee is on the Board
of Directors, or employee has agreed to make a presentation. The Fiscal Year 2021 travel
budgets are funded but frozen.
Equipment replacements have been reviewed for Fiscal Year 2021. The Fiscal Year 2021
equipment replacement budgets are funded but some equipment replacements have been
identified to be delayed if necessary.
All capital projects have been frozen unless the project is already under contract, a grant is
associated with the project, the project is part of an agreement, or the project addresses health
and safety. The Fiscal Year 2021 capital project budgets are funded but frozen.
No wage increases for non-bargaining and bargaining unit employees in Fiscal Year 2021.
Multiple employee work groups were formed (CIP & Equipment Team, Operating Budget Team,
Purchase of Services & Contracts Team, Grants and Contracts Team, and Staffing and Vacant
Position Review Team) to assist with the review of FY 21 projections which minimally will be
quarterly.
Departments were directed to develop budget reduction plans (10%, 20% and 30%). The budget
reduction plans developed by departments will not be implemented at this time, however the
plans will be available if needed in the future.
The following chart summarizes the budgets frozen by fund:
Table 8: Frozen Budgets
Fund Positions FTE Equipment* Travel Total
Frozen
General $574,945 9.98 $484,465 $570,256 $1,629,666
Sanitary Sewer $143,568 2.05 0 $11,492 $155,060
Stormwater $16,992 0.52 $40,000 $13,360 $70,352
Water $142,005 2.00 $540,000 $29,348 $711,353
Parking $- 0.00 0 $5,400 $5,400
Refuse $- 0.00 0 $6,934 $6,934
Internal Service $91,318 0.93 0 $390 $91,708
Total $968,828 15.48 $1,064,465 $637,180 $2,670,473
* Some General Fund equipment may break and need to be replaced. The estimated General
Fund equipment that may be unfrozen during Fiscal Year 2021 is $187,000. Of the 606,513
general fund revenues remaining in Table 1 after coving ongoing COVID-19 expenses in Table
5, $187,000 in equipment replacement need to be set aside in case of replacement, which
would leave a balance of$419,513.
9
COVID-19 Assistance
The City of Dubuque has been awarded some Federal Assistance restricted for specific
purposes such as Federal Transportation Administration CARES Act Section 5307 Funds for
$3,641,599; Community Development Block Grant Coronavirus Funds for $647,301; Housing
and Urban Development Housing Choice Voucher administrative funds for $112,800; Federal
Aviation Administration CARES Act Airport grant for $1,159,773; Police Federal Bureau of
Justice Coronavirus Emergency Supplemental Funding for $68,679; and Ambulance Public
Health and Social Services Emergency Fund for $44,663.
The City of Dubuque's received $1,375,656 from the State of lowa Local Government Relief
Fund which was used to reimburse 25% of Public Health and Public Safety salaries.
The City of Dubuque is also submitting COVID-19 related expenses to FEMA because of the
disaster declaration related to the pandemic.
Due to the estimated size of revenue losses and increased expenses in Fiscal Year 2020 and
2021, the City of Dubuque is advocating for federal assistance to be passed.
Utility Billing Delinquent Balances
In mid-March, the City temporarily suspended water shut offs related to past due utility bills. Late
fees on past due utility bills are also temporarily suspended and disconnection notices are not
being issued.
There are approximately 1,138 customers with past due utility bills with balances of $125 or
more, in total $554,413. Prior to the pandemic in March 2020, there were approximately 800
customers with past due utility bills with balances of$75 or more for tenants and $125 or more
for owners, in total approximately $300,000.
The following chart compares the past due balances by month for all utility accounts regardless
of the balance for Fiscal Year 2021 (orange line) and Fiscal Year 2022 (blue line):
Table 9: Delinquent Utility Billing Account Balances
Delinquent Balances FYzozo
FY 2021
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
,� y�. `Qe� `oe� ��,t `oec a,� a.�J tr t\ aJ ,�e
�P��J��o`�o ,e� `e� ,a�J ���� �a P�Q � ��
��,Q �o Q� F
10
Due to the current situation with COVID-19, the City of Dubuque is offering payment plans to
those that qualify to address past due utility account balances of $125 or more. First, each
customer needs to apply for CDBG grant/assistance through the City of Dubuque Housing
Department. This must be done in conjunction with an approved Payment Plan with the City.
Payment plans will be allowed up to 12 months. Customers must make regular monthly
payments of the current charges due in addition to the amount agreed upon in the payment plan.
Payment Plan payments will only apply to charges accrued since March 2020. Any delinquent
charges prior to March 2020 will not be covered by this payment plan. As of February 10, 2021,
there are 104 active payment plans. The original amount of the plans was $90,557.57,
payments received total $47,372.30, and the remaining balance is $43,185.27 (52.3% has been
collected). There have been 11 payment plans paid in full totaling $4,635.97.
In September 2020 Utility Billing began sending monthly payment reminders to accounts more
than 30 days past due with balances $125 and over. As of February 10, 2021, 8,720 notices
have been mailed and 4,792 email notices have been sent.
The State of lowa Residential Utility Disruption Prevention Program paid $17,942 for 47
accounts in November & December 2020. This program is no longer active.
The Finance Department and Housing Department are working together to respond to
customers who are interested in payment plans and will also actively reach out to customers
who do not respond.
Fiscal Year 2022 Budget and Fiscal Policy Guidelines Recommendation
The Fiscal Year 2022 Budget and Fiscal Policy Guidelines recommended reducing the current
$10.1440 per thousand dollars assessed value property tax rate to $10.0496, a 0.93% decrease
in the property tax rate. This recommendation resulted in no property tax increase for the
average commercial property and had the following impact on the different classes of property:
Table 10: FY22 Budget and Fiscal Policy Guidelines Proposed Property Tax
Average Property % Property Tax
Tax Cost Change Cost Change
Property Type from FY21 from FY21
Residential $12.49 1.62%
Commercial $0.00 0%
Industrial ($14.20) (0.30%)
Multi-Residential ($116.55) (6.15%)
Current Property Next Year's
Tax Rate Property Tax Rate % Change
$10.1440 $10.0496 (0.93%)
11
The level of taxation in the FY22 Budget and Fiscal Policy Guidelines provides $247,455 for
recurring and $154,347 for non-recurring general fund improvement package requests to be
responsive to the priorities established by the Mayor and City Council.
Revised Fiscal Year 2022 Property Tax Rate Recommendation
A revised recommendation is now being proposed to further reduce the impact on the average
residential homeowner.
Based on the Fiscal Year 2021 updated revenue and expense projections for the General Fund,
there is an estimated balance of just over $400,000 in one-time resources. The revised
recommendation for Fiscal Year 2022 is to fund the non-recurring improvement packages in the
amount of$154,347 from the Fiscal Year 2021 estimated revenue balance of$400,000. This
change would result in a property tax rate reduction from $10.0496 per $1,000 of assessed
valuation to $9.98607. The revised property tax rate recommendation of $9.98607 would have
the following impact on the different classes of property:
Table 11: FY22 Revised Property Tax Recommendation
Average Property % Property Tax
Tax Cost Change Cost Change
Property Type from FY21 from FY21
Residential $7.55 0.98%
Commercial ($20.02) (0.63%)
Industrial ($43.77) (0.93%)
Multi-Residential ($127.79) (6.74%)
Current Property Next Year's
Tax Rate Property Tax Rate % Change
$10.1440 $9.98607 (1 .56%)
The Fiscal Year 2022 property tax revenue would be reduced from $26,630,342 to $26,462,344,
which would be a 0.99% increase over Fiscal Year 2021 property tax revenue. The maximum
property tax resolution would require a simple majority vote of the City Council because the
proposed property tax increase is less than 2%.
No Property Tax Increase to the Average Residential Homeowner
If the City Council would decide to adopt a guideline of no property tax increase to the average
residential homeowner, no recurring improvement packages would be funded ($247,455), the
non-recurring improvement packages ($154,347) would be funded using the Fiscal Year 2021
estimated revenue balance of$400,000, and $23,198 of General Fund maintenance level
equipment replacements would be funded by the Fiscal Year 2021 estimated revenue balance.
12
Targeting no property tax increase for the average homeowner has the following impact on the
different classes of property:
Table 12: FY22 No Increase to Average Homeowner
Average Property °/a Property Tax
Tax Cost Change Cost Change
Property Type from FY21 from FY21
Residential $0.00 0%
Commercial ($43.59) (1.43%)
Industrial ($81.92) (1.79%)
Multi-Residential ($144.99) (7.64%)
Current Property Next Year's
Tax Rate Property Tax Rate °/a Change
$10.1440 $9.88899 (2.51%)
JML
13
Dubuque
THE CITY OF �
All-America Cily
D V L L rinnUti�i<�ve u�xzn
' � II ��'
Maste iece on the Mississi i zoo��zoiz�zoi3
�P pp zoi��zoi9
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Set Public Hearing for Resolution Establishing Maximum Property Tax
Dollars for Fiscal Year 2022
DATE: February 11, 2021
It is my goal that the Fiscal Year 2022 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 in August 2020, at the annual goal setting process.
In the midst of last year's budget process, the World Health Organization declared on
March 11, 2020 that COVID-19 was a pandemic. Almost immediately the world
economy began to shut down.
Locally, unemployment skyrocketed from the lows of 2018/2019 of less than 2°/o
unemployment, to the February 2020 unemployment of 3.4%, to a 2020 high of 12.9%
in April 2020. Since then there has been a steady decline to 3.5% in December 2020.
However, this low unemployment rate can be deceptive. From January 2020 (57,349)
to December 2020 (51,760), 5,589 people have left the Dubuque County labor force.
These are people who were previously employed, or previously unemployed and
looking for a job, that are now unemployed and not looking for a job.
Everything I have heard and read indicates that the economic downturn in Dubuque has
most negatively impacted the hospitality and tourism industries, which are commercial
businesses, and individuals who mainly live in apartments. Recognizing this, I have
tried to recommend a budget that minimizes property taxes on commercial properties
and multi-family residential properties (3 units and above as defined by the State of
lowa). I am doing this while trying to have some additional resources to be responsive
to the priorities of the Mayor and City Council.
You will recall that in the current year (FY21 beginning July 1, 2020) City budget that
was adopted by the Mayor and City Council in April 2020, at the beginning of the
pandemic, there was a property tax rate reduction of 1.8%, which lowered property
taxes on residential property, commercial property and industrial property, but did cause
an increase on multi-residential property. The change from FY20 to FY21 was as
follows:
Property Type Average Property % Property Tax
Tax Cost Change Cost Change
from FY2020 from FY2020
Residential $1.09 less 0.14% decrease
Commercial $104.45 less 3.30% decrease
Industrial $132.61 less 2.81% decrease
Multi-Residential $158.73 more 9.13% increase
Current Property Next Year's % Change
Tax Rate Property Tax Rate
$10.33144 $10.1440 1.8% Decrease
Dubuque then compares very favorably with the ten other cities in the State of lowa with
a population greater than 50,000 with having the lowest property tax rate.
FT_ t _��l �--r.�r' �- -��E��ir� Ti�>: �'�:.".i.� - - -. _y.,
�
#��,�a �ie.�s �ia.�a
ae Si��e
pa $15�2 �15.66 $15�i6 #15_77
t��
51�,3U
a� ���.1� €ia_i� ��i_��
�na
4�
� � � ,
�
�
1e
D�� Annc �nr'�fe�LMa A�.�W Cidr thvClb'ioxC�6ae� 6ia Co�� ftrlsloF
■��'C�u4K Pmld� ■dm�' 9i�Rc
• Highest-ranlc�d city�Waterloo, $18.4�� is 8236 highertlran U�uque
• �4VEf�gB a� atllBf LO CItIBS��L�,22� is 509�higher�an Uubuque
The above numbers relate to the current fiscal year, FY21. Now I will be moving to
describe how my recommendation will affect FY22 and beyond.
Dubuque would compare very favorably with these other cities when looking at debt in
that with using only 45% of the statutory debt limit if the FY22 Capital Improvement
Program budget recommendation is adopted, Dubuque would rank 5t" lowest of the
eleven cities and very close to the 44.68% average of the other cities.
2
Percentage of Legal Debt Limit Utilized
100%
90%
80%
70% 64% 63%
0 57% 53%
60/0 49% 49%
50% 45% 45% o
40/o
40%
27%
30% 22% 22%
20%
10%
—%
G�.� \��� Qo� ��oo �`a5 `��� ���,1 ��� ��� ��� \��� G�.�
�\o�+ ��o �J�� ��� m`�m ��o �� O��J P�� P �G\� \o��.
O � G�a O JaJ �o�` Go�
�' J� �
O P�o'
In addition, the Mayor and City Council have been good stewards of City funds and built
up healthy general fund reserves. The City maintains a general fund reserve, or
working balance, to allow for unforeseen expenses that may occur. The goal is to have
at least a 20% general fund reserve.
FY2021 FY2022 FY2023 FY2024 FY2025
. - . . . -
� . � $17,903,632 $17,903,632 $17,903,632 $17,903,632 $17,903,632
' � • - • - - • - - 25.21% 24.72% 24.24% 23.76% 23.29%
As previous analysis has shown, the City of Dubuque is also one of the most efficiently
run cities in the comparison group of the eleven cities with a population of greater than
50,000.
The Fiscal Year 2022 budget recommendation is that the property tax rate be further
reduced from the current $10.1440 per thousand dollars assessed value to $10.0496, a
0.93% decrease in the property tax rate.
Targeting no property tax increase for the average commercial property has the
following impact on the different classes of property:
3
Property Type Average Property % Property Tax
Tax Cost Change Cost Change
from FY2021 from FY2021
Residential $12.49 1.62 %
Commercial $0.00 0 %
Industrial ($14.20) (0.30%)
Multi-Residential ($116.55) (6.15%)
Current Property Next Year's % Change
Tax Rate Property Tax Rate
$10.1440 $10.0496 (0.93%)
With this level of taxation there is $401,802 available to fund general fund improvement
package requests in an attempt to be responsive to the priorities established by the
Mayor and City Council.
If the City Council should determine that a more appropriate target would have been no
property tax increase for the average homeowner, this would require a lower property
tax rate, which will further lower the property taxes for industrial and multi-residential
properties and lead to a property tax reduction for commercial properties. There then
would be no money available for general fund improvement packages and the
maintenance level budget would need to be reduced by $23,198.
Targeting no property tax increase for the average homeowner has the following impact
on the different classes of property:
Pro ert T e Avera e Pro ert % Pro ert Tax
Residential $0.00 0°/o
Commercial $43.59 1.43%
Industrial $81.92 1.79%
Multi-Residential $144.99 7.64%
Current Pro ert Next Year's % Chan e
$10.1440 $9.88899 2.51%
This reduces the amount of money available for general fund improvement packages
from $401,802 to a negative $23,198, which would lead to maintenance level
reductions.
For FY22 there are $3,144,034 in general fund improvement package requests with a
net property tax impact of$2,627,330.
4
Director of Finance and Budget Jennifer Larson recommends the Fiscal Year 2022
Resolution Establishing Maximum Property Tax Dollars be set for public hearing on
March 1, 2021.
Prior to setting the public hearing and publishing the notice of public hearing, the
City Council can increase or decrease this amount. Once this amount is
established and set for public hearing, the City Council cannot increase it at the
public hearing. After the public hearing, the maximum property tax dollars can be
approved as is or reduced, but not increased.
Senate File 634 passed during the 2019 legislative sessions, makes changes to lowa
city and county budgets and taxes for Fiscal Year 2021 and later. Additional steps have
been added to the budget approval process:
1. Determine a maximum amount of taxes that the municipality will certify to
be levied as property taxes from certain levies in the next fiscal year
(called the "total maximum property tax dollars"), and prepare a resolution
that establishes that amount of"total maximum property tax dollars" for the
next fiscal year.
2. Set a time and place for a public hearing on the resolution.
3. Hold a public hearing on the resolution, at which residents and property
owners may present oral or written objections.
4. Following the public hearing, the governing body may decrease the
proposed "maximum property tax dollars" amount but may not increase
the amount.
5. Adopt the resolution. If the "total maximum property tax dollars" amount is
greater than 102% of the current fiscal year's actual property taxes from
the identified levies, then the resolution must pass the governing body by
a two-thirds majority of the full City Council.
The maximum property tax dollars resolution is developed and adopted by City Council
during the budgeting process in order to provide targets or parameters within which the
budget recommendation will be formulated within the context of the City Council Goals
and Priorities established in August 2020. By State law, the budget that begins July 1,
2021 must be adopted by March 31, 2021.
I am providing a list of improvement packages requested, and the impact on the
General Fund, for consideration to be included in the budget. If you approve the amount
of resources recommended in the resolution, the budget will be able to fund $247,455
for annually recurring and $154,347 for non-recurring improvement packages in the
General Fund. There are many improvement packages requested by departments in an
5
effort to support City Council goals and priorities. You will see that the recurring requests
in the General Fund total $1,967,269 of net operating budget impact and the non-
recurring requests in the General Fund total $660,061, for a total of$2,627,330 in
improvements which exceeds the resources that will be available for Fiscal Year 2022.
In order to provide context for the basis of the recommended maximum property tax
dollars recommended in Fiscal Year 2022, the Fiscal Year 2022 Budget and Fiscal
Policy Guidelines are attached.
The budget guidelines are developed and adopted by City Council during the budgeting
process in order to provide targets or parameters within which the budget
recommendation will be formulated within the context of the City Council Goals and
Priorities established in August 2020. The final budget presented by the City Manager
may not meet all of these targets due to changing conditions and updated information
during budget preparation. To the extent the recommended budget varies from the
guidelines, an explanation will be provided in the printed budget document. By State
law, the budget that begins July 1, 2021 must be adopted by March 31, 2021.
The Fiscal Year 2022 budget guidelines call for a 0.93% decrease in the property
tax rate, which would be a 1.62% or $12.49 tax increase for the average Dubuque
homeowner, no increase in property tax for commercial (0%, $0) and a decrease
for industrial (0.30%, $14.20) and a decrease for multi-residential (6.15%, $116.55)
properties.
� . .
,
Property Tax Rate -0.93% -$0.09
Average Residential Payment +1.62% +$12.49
Average Commercial Payment 0.00% $0.00
Average Industrial Property -0.30% -$14.20
Average Multi-Residential Property -6.15% -$116.55
Since 1989, the average homeowner has averaged an annual increase in costs in the
City portion of their property taxes of 1.30%, or about $7.78 a year. If the State had
been fully funding the Homestead Tax Credit, the increase would have averaged about
+$4.79 a year.
The City Council is only considering the Fiscal Year 2022 property tax rate. The Fiscal
Year 2023 - 2026 tax rates are only projections. The future budget projections will be
updated each year so that City Council will have an opportunity in the next year to
change Fiscal Year 2023.
The City property tax rate projected in these budget guidelines and impact on the
average residential property owner ($146,467 assessed value) is as follows:
6
.
FY 2022 10.0496 -0.93%
FY 2023 10.8220 7.69%
FY 2024 11.2619 4.06%
FY 2025 11.8419 5.15%
FY 2026 12.3401 4.21%
. . - . - . , . � . . . . � .
� . . . - . . - . - . . -
FY 2021 $26,202,568
FY 2022 $26,630,342 +1.63% +1.62% +$12.49
FY 2023 $29,162,508 +9.51% +7.69% +$60.07
FY 2024 $30,861,600 +5.83% +4.06% +$34.21
FY 2025 $32,907,331 +6.63% +5.15% +$45.11
FY 2026 $34,974,146 +6.28% +4.21°/a +$38.74
The recommended guideline is a +1.62% or +$12.49 increase for the average
residential property owner assuming the Homestead Property Tax Credit is fully funded
and no increase for the average commercial property owner. A one percent increase in
the tax rate will generate approximately $268,434. In order to achieve no increase to
the average residential property owner, no improvement packages would be
funded and the maintenance level budget would need to be reduced by $23,198.
The residential rollback factor will increase from 55.0743% in 2021 to 56.4094% or a
2.42% increase in FY 2022. The increase in the residential rollback factor increases the
value that each residence is taxed on. This increased taxable value for the average
homeowner ($80,666 taxable value in FY 2021 and $82,621 taxable value in 2022)
results in more taxes to be paid per $1,000 of assessed value.The Fiscal Year 2021
Dollars & Cents is attached.
For the current Fiscal Year 2021, Dubuque has the LOWEST property tax rate as
compared to the eleven largest cities in the state. The highest rate (Waterloo) is 81.78%
higher than Dubuque's rate, and the average is 47.76% higher than Dubuque.
Dubuque's recommended FY 2022 property tax rate is $10.0496 (decrease of 0.93%
from FY 2021).
7
Fiscal Year 2021 City Property Tax Rate Comparison for Eleven Largest lowa Cities
11 Waterloo $18.44
10 Council Bluffs $18.26
9 Des Moines $17.46
8 Davenport $16.78
7 lowa City $15.77
6 Cedar Rapids $15.66
5 Sioux City $14.90
4 West Des Moines $11.80
3 Ankeny $10.67
2 Ames $10.15
1 Dubuque $10.14
AVERAGE w/o Dubuque $14.99
Significant issues impacting the FY 2022 budget include the following:
1. State Funded Backfill on Commercial and Industrial Property Tax
a. Elements of the property tax reform passed by the lowa Legislature in
2013 have created a tremendous amount of uncertainty in the 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 legislators have been quoted in
the media as casting doubt on the reimbursements continuing. It is
assumed the backfill will be fully funded in FY 2022 and FY 2023.
2. Gaming Revenue.
a. Gaming revenues generated from lease payments from the Dubuque
Racing Association (DRA) are estimated to increase $43,621 from
$5,185,737 in FY 2021 to $5,229,358 in FY 2022 based on Fiscal Year
2019 actual plus Sports Betting. This follows a $198,633 increase from
budget in FY 2021 and a $85,928 increase from budget in FY 2020.
b. The lowa Legislature passed Sports Betting Legislation in June 2019. DRA
started Retail (On-Site) on August 27, 2019 with Mobile Wagering starting
on November 12, 2019. Diamond Jo Casino partnered with Betfair
Interactive US LLC (FanDuel Sportsbook) and they started Sports Betting
Retail in September 2019 and Mobile Wagering in September 2020. DRA
8
had $562,601 in Sports Book revenue and $16,141,637 in Sports Betting
handle during 2020. With an amended lease, the City began receiving
0.5% of the handle from Sports Betting in FY 2021. The City's estimated
0.5°/a of the handle from Sports Betting in FY 2022 is $80,708.
3. New multi-residential property class in Fiscal Year 2017.
a. Beginning in FY 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 3 or more units. Rental
properties of 2 units were already classified as residential property. The
State of lowa will not backfill property tax loss from the rollback on multi-
residential property.
- . . . � . � . .
2017 86.25% $331,239
2018 82.50% $472,127
2019 78.75% $576,503
2020 75.00% $691,640
2021^ 71.25% $952,888
2022 67.50% $1,371,435
2023 63.75% $1,293,125
2024 56.41 % $1,458,182
Total $7,147,139
'55.07% =Current residential rollback
^ 17% State Equalization Order in FY 2021
This annual loss in tax revenue of$1,371,435 in FY 2022 and $1,458,182 from
multi-residential property when fully implemented in FY 2024 will not be backfilled
by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City will lose
$7,147,139 in total, meaning landlords will have paid that much less in property taxes.
The state did not require landlords to charge lower rents or to make additional
investment in their property.
4. Debt Reduction
a. 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. The recommended FY 2022 budget will achieve that target
throughout the 5-year CIP and also substantially beat overall debt
reduction targets over the next five and ten-year periods.
9
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 lowa. In Fiscal Year 2015, the City of Dubuque used 90°/a of
the statutory debt limit. In this budget recommendation, the Mayor
and City Council are currently reviewing for Fiscal Year 2022, the use
of the statutory debt limit would be 45°/a, and by the end of the
recommended 5-Year Capital Improvement Program (CIP) budget in
Fiscal Year 2026, the City of Dubuque would be at 37% of the
statutory debt limit. Projections out 10 years to Fiscal Year 2031
show the City of Dubuque at 18% 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%gp%
87%
82% 79% 79°/a
0
75% 86% 9% 63% 72% � ° 70% 66% 66% 62%
56%
0
50 0 46% 45% 44% 45%
0
5 ° 40% 37%
33% 29%
25% 21%
25% 18%
—%
� � � � � � � � � � � � � � � � �
� � � � � � � � � � � � � � � � �
� s 3 j � 1V N N W N N N N N N W W
�7f Q� �I 0� �G o � N W A t7� O� �I 00 �O O �
� FY16 Adopted � FY22 Recommended
10
b. The City will issue $54,053,140 in new debt in the recommended 5-year CIP,
mostly for fire truck and pumper replacements, fire station expansion, road
improvements, sanitary sewer improvements, water improvements, additional
downtown parking, and maintenance of Five Flags.
Project FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
Airport Rehab Taxiway A $ 577,000 $ 283,000 $ 860,000
Downtown Parking Ramp GDTIF $ 4,050,000 $ 9,078,000 $ 6,000,000 $19,128,000
Finance General Ledger Software $ —
Fire HVAC Headquarters $ 169,184 $ 84,894 $ 254,078
Fire Ladder& Pumper $ 1,582,154 $ 425,460 $ 433,000 $ 2,440,614
Fire Station Expansion $ 700,620 $3,194,028 $ 3,894,648
Five Flags GDTIF $ 5,750,000 $ 5,750,000
Riverfront Docks/Property
Acquisition GDTIF $ 1,300,000 $ 1,300,000
Smart Parking GDTIF $ 222,000 $ 450,000 $ 672,000
Solid Waste Collection Vehicles $ 175,000 $ 235,000 $ 55,000 $ 265,000 $ 106,000 $ 836,000
Sanitary Sewer Projects $ 5,170,303 $ 4,224,310 2871401 4700000 1296786 $18,262,800
Water Projects $ 655,000 $ 655,000
Total New Debt $12,277,457 $14,583,494 $15,763,755 $6,381,620 $5,046,814 $54,053,140
In addition, the City will access $3,424,668 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 2022 2023 2024 2025 2026 Total
Stormwater Upper Bee Branch Rail Road $ 2,394,668 $ 2,394,668
Water CIWA Purchase& Improvements $ 1,030,000 $ 1,030,000
Total Draw Downs $ 3,424,668 $ — $ — $ — $ — $ 3,424,668
11
The City will retire $96,569,252 of existing debt over the next five-years (FY22-
FY26).The following chart shows the net reduction of debt from Fiscal Year 2022
- Fiscal Year 2026:
FY FY FY FY FY
Project 2022 2023 2024 2025 2026 Total
New Debt $ 12,277,457 $ 14,583,494 $ 15,763,755 $ 6,381,620 $ 5,046,814 $ 54,053,140
Previously
Issued SRF
Draw Downs $ 3,424,668 $ — $ — $ — $ — $ 3,424,668
Retired Debt -$16,890,599 -$18,413,294 -$19,666,659 -$20,461,290 -$21,137,410 -$96,569,252
Net Debt
Reduction -$1,188,474 -$3,829,800 -$3,902,904 -$14,079,670 -$16,090,596 -$39,091,444
Outstanding General Obligation (G.O.) debt on June 30, 2022 is projected to be
$107,921,270 (44.67% of the statutory debt limit), leaving an available debt
capacity of$133,694,813 (55.33%). In Fiscal Year 2016, the City was at
86.13% of statutory debt limit, so 44.67% in Fiscal Year 2022 is a 41.46°/a
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$146,790,767 on June 30, 2022 .
The total City indebtedness as of June 30, 2022, is projected to be $254,712,037
(44.67% 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 $39,958,904 less in debt as of June 30, 2022.
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.
12
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)
$25
$23.4
$22.4
$21.1 $21.2 $21.6 $21.6
$20.5
$20 $19.7
$18.1 $18.4 $18.7
$17.4 $17.1 $16.9
$16.4 $17.8 '
�
��rj $14.3 � g
� $14.8 $14.6
O
= $13.0
� $12.1
��� $10.5
6.4
5.0
$5
1.0 1.0 1.0 1.0 1.0
��
co r� oo rn o � c� co � � co � oo rn o
� � � N N N N N N N N N N M M
} � � � � � � � � � � � � � � �
L.L L.L LL L.L L.L LL LL L.L LL LL L.L LL LL LL L.L LL
� Retired Debt � New Debt
*In Fiscal Year 2020, the City had $5,908,200 forgiven of the Bee Branch Upper
Bee Branch Loan on June 30, 2020 which increased principal payments
reflected.
c. The City also has debt that is not subject to the statutory debt limit. This debt
includes revenue bonds. Outstanding revenue bonds payable by water, sewer
and stormwater fees on June 30, 2022 will have a balance of $146,790,767. The
total City indebtedness as of June 30, 2022, is projected to be $254,712,037. The
total City indebtedness as of June 30, 2021, was $255,296,689. In FY 2022, the
City will have a projected $584,652 or 0.23% less in debt. The City is using
debt to accomplish necessary projects and to take advantage of the attractive
interest rates in the current market.
13
The following chart shows Dubuque's relative position pertaining to use of the
statutory debt limit for Fiscal Year 2022 compared to the other cities in lowa for
Fiscal Year 2020 with a population over 50,000:
Fiscal Year 2020 Legal Debt Limit Comparison for Eleven Largest lowa Cities
Rank City Legal Debt Limit Statutory Debt Percentage of Legal
(5%) Outstanding Debt Limit Utilized
11 Sioux City $ 234,052,896 $ 149,054,999 63.68 %
10 Des Moines $ 633,944,619 $ 399,100,000 62.96 %
9 Davenport $ 362,087,372 $ 207,415,000 57.28 %
8 Waterloo $ 198,578,109 $ 106,207,641 53.48 %
7 Cedar Rapids 583,572,883 286,435,000 49.08 %
6 W. Des Moines $ 414,397,845 $ 203,180,000 49.03 %
5 Dubuque (FY22) $ 241,616,084 $ 108,727,970 45.00 °/a
4 Ankeny $ 303,268,096 $ 122,095,000 40.26 %
3 Ames $ 242,136,755 $ 64,305,000 26.56 %
2 Council Bluffs $ 256,079,718 $ 57,043,627 22.28 %
1 lowa City $ 306,678,510 $ 68,160,000 22.23 %
Average w/o Dubuque 44.68 %
Percent of Legal Debt Limit Utilized
so�io
62.96% 63.68%
60% 57.28%
53.48%
44.68% 45.00%
47.37% 49.03%
40.26%
40%
26.56%
22.23% 22.28%
20%
0%
o�aG��.� G\����5 P�eS P��e�� P�e�a�,e e��yry`L� ��a,��a5 y�o\�e5 �a�e��o° a�e�,�o� ��o\�e5 `o��G��.�
� Go�� O J���� Geda ��e O �e 5
Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities
in lowa with a population over 50,000 and Dubuque is slightly above the average
of the other Cities.
14
Total Debt (In Millions)
$324
$302.3
$297 $290.1
$282.0 $279.9
$295.5
$270 $285.5 L $265.6 $267.4
$275.1� $255.3 $255.9 �251.5
$264.9 - $248.2
$243 $252.5 $254.7 $234.7
� $244.3 $241.4 $219.1
� $216 $226.2 199.3
�
$189 179.0
$162 158.8
137.4
$135
$108 $119�
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
FY16 Adopted � FY22 Recommended
By the end of the recommended 5-Year Capital Improvement Program (CIP)
budget the total amount of debt for the City of Dubuque would be $219.1 million
(37% of the statutory debt limit) and the projection is to be at $119.5 million (18%
of statutory debt limit) within 10 years.
5. 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 declined.
15
. -
� •- •
. . . - . . .
•
Increase due to capital projects not expended before the end of the FY
FY 2016 17.52% and increase in general fund revenue
Increase due to capital projects not expended before the end of the FY
FY 2017 20.09% and additional contributions to general fund reserve
Increase due to capital projects not expended before the end of the FY
FY 2018 23.81% and additional contributions to general fund reserve
Increase due to capital projects not expended before the end of the FY
FY 2019 29.06% and additional contributions to general fund reserve
Increase due to freezing vacant positions and most capital projects due
FY 2020 31.24% to the pandemic.
FY 2021 25.21% Decrease due to planned capital expenditures
Fund Reserve as a Percent of General Fund Revenue
35
31.24%
30 29.06%
� 25 23.81% 25.21 /24.72% 23.76%
�' � 0 22.84%
� 20.09% 24.24/0 23.29%
a 20 � �
17.52%
15
10
FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26
Fiscal Year
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.
16
After all planned expenditures in FY 2021, the City of Dubuque will have a
general fund reserve of 24.83% of general fund expenses as computed by the
methodology adopted in the City's general fund reserve policy on a cash basis or
25.21% percent of general fund revenues as computed by the accrual basis
methodology used by Moody's Investors Service. The general fund reserve cash
balance is projected to be $17,166,567 on June 30, 2021 as compared to the
general fund reserve balance on an accrual basis of$17,903,632 as computed
by Moody's Investors Service.The general fund reserve balance on an accrual
basis exceeds 22% in FY 2021, which is the margin of error used to ensure the
City always has a general fund reserve of at least 20% as computed by Moody's
Investors Service.
In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2022. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has
sustained a greater than 20°/a reserve.
� i i � � i - � � .
Contribution $— $— $— $— $— $— $—
City's Spendable
General Fund Cash $21,744,160 $17,903,632 $17,903,632 $17,903,632 $17,903,632 $17,903,632 $17,903,632
Reserve Fund
Balance
% of Projected 31.24°/a 25.21% 24.72°/a 24.24% 23.76% 23.29% 22.84%
Revenue (Moody's)
6. The Municipal Fire and Police Retirement System of lowa Board of Trustees City
contribution for Police and Fire retirement increased from 25.31% percent in FY
2021 to 26.18% percent in FY 2022 (general fund cost of$133,704 for Police and
$59,244 for Fire or a total of$192,948).
�. The already approved collective bargaining agreements for Teamsters Local
Union 120, Dubuque Professional Firefighters Association, and International
Union of Operating Engineers in FY 2022 include a 3.00% employee wage
increase. The already approved collective bargaining agreement for Teamsters
Local Union 120 Bus Operators include a 3.25% employee wage increase.Non-
represented employees include a 3.00% wage increase. Total cost of the wage
increase is $1,161,505 to the General Fund.
8. Health Insurance
The City portion of health insurance expense is projected to increase from $1,025
per month per contract to $1,086 per month per contract (based on 588
contracts) in FY 2022 (general fund cost of$297,186). 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. In FY 2017, The City went out for bid for
17
third party administrator and the estimated savings has resulted from the new
contract and actual claims paid with there being actual reductions in cost in FY
2018 (19.42%) and FY 2019 (0.35%). In addition, firefighters began paying an
increased employee health care premium sharing from 10% to 15% and there
was a 7% increase in the premium on July 1, 2018. During FY 2019, the City
went out for bid for third party administrator for the prescription drug plan there
has been savings resulting from the bid award. Based on FY 2021 actual
experience, Fiscal year 2022 is projected to have a 6% increase in health
insurance costs. Fiscal Year 2022 projections include additional prescription drug
plan savings of$219,256. Estimates for FY 2023 were increased 6%; FY 2024
were increased 7%; FY 2025 were increased 8%; and FY 2026 were increased
8%.
s. The decrease in property tax support for Transit from FY 2021 to FY 2022 is -
$17,871, which reflects decrease in motor vehicle maintenance and diesel fuel (-
$101,086); decrease in snow removal (-$36,495); decrease in machinery and
equipment (-$35,977); increase in motor vehicle maintenance outsourced
($58,815), and decrease in private contributions related to the Night Rider Route
($84,280).
Timeline of Public Input Opportunities
The Budget Office conducted community outreach with Balancing Act using print and
digital marketing and presentations.
• October: Point Neighborhood Association.
• November: The City Manager hosted an evening virtual public budget input
meeting. The Budget Office conducted a virtual community outreach session
using GoToMeeting.
• December: City staff conducted two virtual community outreach sessions using
GoToMeeting and Facebook Live streaming.
A total of 71 community members attended the virtual budget presentations.
There have been 140 page views of the Balancing Act budget simulator tool and
3 budgets have been submitted by the public as of February 1, 2021. The input
provided will be analyzed by City staff and evaluated by the City Manager for
inclusion in the Fiscal Year 2022 budget recommendation as deemed
appropriate.
Open Budget
URL: www.dollarsandcents.cityofdubuque.org
During Fiscal Year 2016, the City launched a web based open data platform. 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
18
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.
Open Expenses
URL: http://expenses.cityofdubuque.org/
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
URL:http://bit.ly/fy22budgetsim
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high-priority
budget input questions, and leave comments.
Taxpayer Receipt
URL: http://bit.ly/taxpayerreceipt
During Fiscal Year 2019, the City launched an online application which allows users to
generate an estimate of how their tax dollars are spent. The tool uses data inputted by
the user such as income, age, taxable value of home, and percentage of goods
purchased within City limits. The resulting customized receipt demonstrates an estimate
of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other
city services. This tool is in support of the City Council goal of a financially responsible
and high-performance organization and addresses a Council-identified outcome of
providing opportunities for residents to engage in City governance and enhance
transparency of City decision-making.
There will be six City Council special meetings prior to the adoption of the FY 2022
budget before the state mandated deadline of March 31, 2021.
The recommended resolution for maximum property tax dollars in FY 2022 is
$26,349,612 (excluding the debt service levy of$280,730) or a 1.63% increase over
Fiscal Year 2021 property tax dollars. Since the "total maximum property tax
dollars" amount is less than 102% of the current year's property taxes (1.63%
excluding the debt service levy), the resolution must pass by a simple majority
vote of the City Council.
19
I respectfully recommend Mayor and City Council approval to set the public hearing for
March 1, 2021.
.��r"�'"1 ��t
Michael C. Van Milligen
MCVM:jml
Attachments
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
20
.
o a e
. $ e
�
.
��
� • � • • Dubuque has the LOWEST FY2021 property tax rate
($10.14 per thousand assessed value) of lowa's 11
� � � � � � cities with populaAtions over 50,000.
City of Dubuque FY202� •��„�, ,,:��_ „v..��v�__ T�.. n..+o ,,...��..v.....�
p,-,,,,o,-t�T T�X R�+� $Zo
$17.98 $18.26 $18.44
Sis $16.78
• $10.1440 per thousand dollars assessed value s,s $15.22 $15.66 $15.68 $15.77
• Decrease of 1.81% from FY2020 s,4
$12.30
s�s $11.16
$10.74 $10.15
sio
�i• i- �i• ��- Sa
� . • �'' � $6 � , �
� I 1 � 1 1 $4
Residential $1.09 less 0.14% decrease
sz
Commercial $104.45 less 3.30% decrease
so
Industrial $132.61 less 2.81% decrease Dubuque Ames Ankeny^WestDes Avg.w/o Cedar SiouxCity IowaCity Davenport Des Council Waterloo
Moines*Dubuque Rapids Moines* Bluffs
Multi-Residential $158.73 more 9.13% increase
• Highest-ranked city (Waterloo, $18.44) is 82°/a higherthan Dubuque
� "� - • Average of other 10 cities ($15.22) is 50% higher than Dubuque
��
$10.33144 $10.1440 1.8% Decrease *Includes the transit taz levy adopted by the Des Moines Area Regional Transit Authority for comparability.
- � � � � � � - � � Hc �lit
FY2021 Consolidated Rate of 32.66554
Property taxes are collectetl by the County and tlistributed monthly to the
City of Dubuque and other taxing bodies. Property taxes are distributed
among the Dubuque Community School District (45%), City of Dubuque
(31.6%), Dubuque County(18.2%), Northeast lowa Community College � ' � � �
(3.2%), and independent authorities* (2%). • � •
i � �
Property taxes are certified July 1 with the first half tlue on or before
September 30 and the second half due on or before March 31. For more � �
information, contact the City Assessor at 563-589-4416. � � NICC
� � � 3.2%
* "Independent authorities"includes City Assessor, County Hospital(Sunnycrest � � Independent
Manor), Dubuque County Agriculture Extension, and the Tuberculosis and Brucellosis Authol'Itles
Eradication Fund. 2%
r-iscai Year �u�l
� , City Budget
�
The City's adopted FY2021 budget provides estimated revenues and
expenditures for programs and services to be provided during the fiscal
year, from July 1, 2020, through June 30, 2021. The budget has two
primary components: the operating budget and the capital budget.
� ' ' '
The City's total budget for fiscal year (FY) 2021 is $198,147,164, . �
a 23.96 percent decrease from FY2020. The operating budget � , � , ,
($139,014,939) is a 3.5 percent increase from FY2020, while the
capital budget ($59,132,225) represents a 53.2 percent decrease from
FY2020.
The capital budget funds major improvements to City facilities and
infrastructure, and is based on the first year of needs in the five-year
Capital Improvements Program (CIP) Plan. The CIP Plan is an annually General Funtl $66,416,660 $2,229,339
revised document that guides the City's investments in public facilities Water Fund $10,280,043 $2,756,073
and infrastructure during a five-year horizon. The capital budget is Sanitary Sewer Fund $10,992,418 $3,820,597
supported through multiple funding sources, including federal and state
grants. Stormwater Fund $4,441,361 $10,110,959
Refuse $2,990,205 $269,153
The operating budget includes personnel costs and annual facility Parking $2,747,044 $160,875
operating costs. It is funded primarily through local property and sales
taxes; revenue transfers between departments; licenses, such as building ���,,
and development fees; franchise fees for a company's use of the City's �n/
1`�'}
rights-of-way; charges for services (like sewer and water); fines; grants; r WE WANT YOUR IDEAS!
and other smaller sources of revenue such as interest on investments.
Residents are strongly encouraged to get
• involved in next year's budget process!
� - . �
�•... 0 Visit www.cityofdubuque.org/FY2022budget to —
learn more about virtual community budget input
The general fund is the general operating fund of the City for general sessions and the following tools:
service departments. The general fund has an operating budget 1. BalancingAct Budget Simulator- Adjust
of $66.4 million and a capital budget of $2.2 million. This fund revenues and expenditures, and provide comments
encompasses the bulk of activities that are traditionally considered on how you think the City of Dubuque should
basic governmental services such as public safety, culture & recreation, spend its money.
health & social services, and general government.
2. Taxpayer Receipt- Illustrate how your estimated
City property taxes and local option sales tax are
General Fund Reserve Projections allocated to services such as Police, Fire, Parks,
and Public Works.
The City maintains a general fund reserve, or working balance, to allow
for unforeseen expenses that may occur. The goal is to have at least a 3. Public Comments Form- share your ideas
20% reserve. In Fiscal Year 2017, the City had projected reaching this related to projects, amenities, services, programs,
consistent and sustainable 20% reserve level in Fiscal Year 2022. In etc., directly with City staff!
fact, the City met the 20% reserve requirement in FY2018, four years ahead
of schedule, and with all prior year contributions, this is sustainable.
i i i i , i
�- �.� - - - . .
� : $17,119,065 $17,119,065 $17,119,065 $17,119,065 $17,119,065
'• � ' � ' '� ' 24.00% 24.38% 23.67% 23.41% 23.35%
WHAT'S INCLUDED IN YOUR MONTHLY UTILITY BILL?
� Curbside Collection Water
�� Basic Rate = $14.99/month � Avg. Household Rate* _ $30.72/month
(4.03% DECREASE from FY2020 or$0.63 per month) (NO increase from FY2020)
Curbside refuse collection includes one 35-gallon container *Average household rate based on 6,000 gallons per
per week. Weekly curbside recycling is no extra charge. month at$0.00512 pergallon
� Stormwater � Sanitary Sewer
Avg. Household Rate* _ $8.29/month Avg. Household Rate* _ $42.24/month
���� (NO increase from FY2020) � (NO increase from FY2020)
*Monthly rate for majority of Dubuque households based on *Average household rate based on 6,000 gallons per month
usage of one single family unit. Stormwater fees are based at$0.00704 pergallon. The City's wastewater collection and
on the amount of impervious ground coverage on a property. treatment system operates as a self-supporting enterprise
Fees collected are only used for stormwater management fund which means that it is funded only with revenue from
activities such as the construction, maintenance and user fees.
operation of the public stormwater management system.
nv vv L.v vv L ��n�.�� : Among lowa's I1 largest cities:
� 5th Lowest: The highest curbside collection rate � 2nd Lowest:The highest water rate (West Des
� (Ames) is 75.12% higher than Dubuque's rate, and � Moines) is 20.38% higher than Dubuque's rate,
the average is 14.00% higher than Dubuque. and the average is 9.35% higher than Dubuque.
.` 2nd Highest:The highest stormwater rate (Des � 4th Highest:The highest sanitary sewer rate
� Moines) is 77.08% higher than Dubuque's rate, (Ankeny) is 45.98% higher than Dubuque's rate,
���� and the average is 26.70% lower than Dubuque. � and the average is 3.69% lower than Dubuque.
o � o --- - - — —
How General Fund .
- • �i
MA71 ptT 7 C �11Q71t
�
L
Public Safety (fire, police, ambulance services, 9-1-1 dispatch, animal control, building 41.so�o
inspections,crime prevention,emergency management,flood control,etc.)
Culture & Recreation (AmeriCorps, arts and cultural affairs, civic center, conference center, library, 17.6%
marina, parks, recreation,etc.)
General Government (city attorney and legal services, city clerk, city council, City Hall and general 13.5%
buildings,city manager,finance, information services,etc.)
Public Works (airport, maintenance of streets, bridges, and sidewalks; snow removal, g 20�0
street cleaning,street lighting,traffic control,etc.)
Community & Economic (economic development, housing and community development, neighborhood 6.3%
Development development, planning and zoning,etc.)
Transfers Out (to funds other than General Fund) 6.4%
Capital Projects (City infrastructure improvements or major equipment purchases) 3.0%
Health & Social Services (community health, health regulation and inspection, human rights,etc.) 1,4°/o
Debt Service (government capital projects,tax-increment financing[TIF]capital projects) 0,9°/o
' � � � �
1 1 1 I ! � � � • � ► � �
.� �� ; I .!
:�-,,.;,,.. „ .: . ,��, -
� — ,�
Total Debt (in millions)
#¶�� .� - �� �-r _-
.. -�-_.._.
Debt is being issued each year,but more is � �`� - _�
bein retiretl than issuetl. ,T �
g ,��`,,�� '`
$300 �r — = -
$261 r : �"�" :��' ��, ��;�; . -_ �
$zso $236 " ����
� � -
Szoo � .. - e --r ��..r ;
,� .�.
�,so
$135 � ��'��,�1� • „� ��� .{;�� u �
_ `� ��' 1�'�� ~ '�
$100 � .
+FY2021 � . . � m ._ ',
$50 �i;� w
�r.�. � �d�' ^� �.
$0 ���'��� �..—�'N.� __�
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 . ,;� .
,���::
���'�_�';�-- . _..,. -� ._ .._ —
i i
- _ ;�-
Statutory Debt Limit Used (as of June 30) The City of Dubuque's use of debt can be
This chart shows the percentage of statutory debt limit in the Fiscal compared to many average homeowners
10°� Year(FY)2021 atlopted butlget.By FY2030,the City will be at 22%of Who borrow to buy their home. The City has
90' thestatutorytlebtlimit. borrowed money at low interest rates to invest in
$o, infrastructure. Unlike the federal government,
,o,, the City does not borrow money to cover
so� operating expenses.
soi 47% 43%
ao i � � � � �
30� 22% . 1 • 1 1 1
20% {FY2021
��� # Project Description and Amount Outstanding
°� I 1 Stormwater Improvements
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
$73,653,120
2 Water& Resource Recovery Center
$57,961,000
,�,
Percentage of Legal Debt Limit Utilized 3 Waterlmprovements
(FY2019) 32,417,569
9�°i 4 Parking Improvements
so^i $25,019,132
��� sai 63� 5 Downtown TIF Incentives/Improvements
soi �/ $20,287,421
6�� 50� 6 Sanitary Sewer Improvements
a�i a�i asi 46i
50% 43%
$14,811,522
40�� 7 TIF Rebates/Bonds to Businesses
30°� 27� 7,744,839
23% 23% 22% �
2�°i � ■ 8 Industrial Park Expansions
io�r $6,250,618
o� 9 Caradco Building lowa Finance Authority Loan
`�c1 ,`�eS oi� ��oo `,cey ,R,'`, �as o,oe ec� ,�,`91 �e`' �� `J�5 ,'��, �3,639,903
�`o��. e��.o oa,eoQ �atie ey�.o oJ�F aa�aQ J���o° o`ti oJ F Q' ;a Jc4�� oJ F p �
� o Q �. o �. 10 Street Im rovements
° �° J�° �e �,\� Je° c,° JeJ $3,298,918
� PJ�° � � Total $245,084,042
*$145 million was spent on street improvements from 1997-2020
CM026-111220
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
94%City funding of the AmeriCorps Director position for additional funding match for the
current two grants.Currently the City covers 6%of the Director's salary and benefits.This
94%request is for the City to fund the AmeriCorps Director position with city funding versus
the current grant funding of the Director's salary and benefits.All resources of cash match
and in-kind match from the city are maxed out in the two grants(grade level reading and
AmeriCorps teen). R $ 96,381 $ 96,381 N
This improvement request is for the expansion of capacity within the AmeriCorps Program by
increasing the AmeriCorps Coordinator from.28 FTE to 1.0 FTE to support a new Youth
AmeriCorps program,focused on community and civic career exploration and skill
development,expanding the currently Creating Opportunities AmeriCorps grant.The
AmeriCorps programs have reached their capacity to expand based on match and staff
hours.The Director has been working together with community partners,such as the
MultiCultural Family Center,Four Mounds,the Leisure Services Recreation Department,the
Engineering and Arts&Culture Departments,as well as the Human Rights Department and
the City's Sustainability Department to explore expansion of the Creating Opportunities
AmeriCorps AmeriCorps grant to include a Youth AmeriCorps program. R $ 67,768 $ 67,768 N
Full-Time Community Outreach Coordinator to work within the Equitable Fine and Fee
Reform program.This position will be located at Bunker Hill.The Community Outreach
Coordinator will work closely with the City Attorney's office,the Police Department,Utility
Billing and Human Rights departments to work directly with community members who choose
community service as a way to pay their fines and fees.This position will work with the
participants by providing guidance and resources to successfully complete their community
service,while also referring them to resources that can help the from having to go through the
program in the future.This position will develop a successful model to help community
AmeriCorps members find success. R $ 68,835 $ 68,835 N
Part-Time Admistrative position(GE-35 and 0.66 FTE).This position is needed to support the
Director of Office of Shared Prosperity,Community Engagement Coordinator,and Data
City Manager's Office Analyst. R $ 28,564 $ - $ 28,564 N
Data Analyst position in the newly-created Office of Shared Prosperity.The position would
work with City staff and partners to track progress,a key to successfully implementing the
plan.Under the direction of the Director of OSP,the Data Analyst would work with
departments and partners to collect community-level and program-level data,analyze the
data,and make recommendations to further the goal of reducing or eliminating poverty,
City Manager's Office especially for racial minorities and other identified vulnerable populations. R $ 73,791 $ 73,791 N
Part-time Administrative Assistant position in the newly-created Office of Shared Prosperity.
To support the Director of OSF,Community Engagement Coordinator,and Data Analyst,a
66 FTE administrative assistant is being requested. The three positions this individual
supports will spend a significant amount of time in meetings with internal departments,
City Manager's Office community organizations,and individual residents. R $ 28,564 $ 28,564 N
Create an O�ce of Shared Prosperity(OSP)led by a Director of Office of Shared Prosperity.
A team of City staff are recommending this creation based on the Equitable Poverty
Prevention Plan(EPPP).The team concluded that the best use of resources would be to
revise the existing Neighborhood Development Specialist(GE-35)position to create a new
Director of Shared Prosperity and Neighborhood Support.This improvement changes the
City Manager's Office title,however the pay grade remains the same. R $ - $ - Y
Expenses related to the preparation of grant applications.EPA Brownfields grants,in
themselves,have catalyzed hundreds of millions of dollars in public and private investment in
our community.Having funds to cover the expense of writing the grant applications is a small
investment.Having well-written grants increases the chances of Dubuque receiving these
grants which historically have funded important efforts such as the original purchase of land
for the Industrial Center West,the redevelopment of the Historic Millwork District,the
Economic Development development of the Port of Dubuque,the transformation of the Bee Branch area,and others. R $ 10,000 $ 10,000 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact YIN
Increases funds available to be granted to Dubuque-based arts and culture organizations via
the Operating Support Grants(OSG)program through the Office of Arts and Cultural Affairs.
Established in 2005,OSG funds are available through an annual,competitive application
process to 501c3's operating within the city of Dubuque whose primary mission is to provide
year-round arts and culture programs;applications are reviewed and scored by a panel
independent of staff or the Arts Commission and applicants are eligible to receive up to
Economic Development $30,000 or a maximum 6%of their operating budget. R $ 50,000 $ 50,000 N
Diversity,Equity&Inclusion best practices training and professional development
opportunities to address specific concerns related to the arts and culture sector's work in
advancing equity in the community.Use of the funds will be directed by City staff as advised
by the Arts Commission and the Diversity,Equity&Inclusion Working Group of the Arts and
Culture Master Plan to 1)offer no-cost learning opportunities for arts and culture grantees,
and/or 2)provide scholarships for leaders of partner organizations to attend Diversity,Equity
Economic Development &Inclusion training in line with the organization's mission and programs. R $ 5,000 $ 5,000 N
An additional AmeriCorps and a dedicated laptop for that person's work to foster youth
engagement efforts related to the City's arts and culture related programming in support of
ongoing implementation of the City's Arts and Culture Master Plan.The balance of the full
funding needed to add this AmeriCorps will be included in the City's AmeriCorps upcoming
Economic Development grant request to be written and submitted by the AmeriCorps. R $ 8,500 $ 8,500 N
Funding to sponsor 66 Dream Center students for an entire year of programming.The Dream
Center program provides students with year-round holistic services that include continued
School Day Curriculum,Healthy Meals,Skill/Character Development,and more.Academic
success is largely built on skills and concepts students learn in grades K-3.High-quality
assessments can pinpoint student trouble spots before they become problems with long-
lasting impact.The City currently contributes$40,000.Requested$224,000 but was
Economic Development recommended$10,000. R $ 10,000 $ 10,000 Y
Additional funding to the Fountain of Youth.The funding will be a continuation of the Partners
in Change/Community in Change programming.Requested$40,000 but was recommended
Economic Development $10,000. R $ 10,000 $ 10,000 Y
Funding strategy to help carry the Dubuque Winter Farmers Market through a succession
plan from Volunteer-Driven(no paid staff/no stipends)to securing funding to pay Wicked
River Event Production(founder of Millwork Night Market). The volunteer market manager
Economic Development will be resigning at the end of the 2020-21 season in April. R $ 6,000 $ 6,000 N
Increases the total annual amount of the contracted service agreement to$83,300. Dubuque
Main Street has been a longtime partner with the City,providing economic development
services in the downtown area,as well as organizing cultural events and managing the
Economic Development Dubuque Farmer's Market. R $ 3,964 $ 3,964 Y
Hire a company to preform Quality Assurance on calls for the Communication Center.This
would provide Quality Assurance on all calls received by the Communications Center.The
company will log in and review cases from Emergency Police Dispatch,Emergency Fire
Dispatch and Emergency Medical Dispatch.The company will then provide scorecards for
each case and each dispatcher would be able to review their compliance scores.This will
Emergency provide the dispatchers with analysis on things they do well and things they need
Communications improvement on. R $ 48,000 $ (16,000) $ 32,000 N
Increase the overtime budget by$7,900. Every year,the Communications Center goes over
Emergency budget on overtime.This improvement level request would increase it to the average of the
Communications last five years of overtime. R $ 7,900 $ (2,633) $ 5,267 Y
Part-time(0.73 FTE)Utility Locator(GE-24C)to assist with the locating of buried City utilities
(storm sewer,sanitary sewer,water main,fiber optics,electrical,etc.)as part of the lowa One
Call service.The part-time Utility Locator would improve the efficiency of the current full-time
Engineering Utility Locator position within the Engineering Department. R $ 8,584 $ 8,584 Y
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact YIN
Seasonal(0.30 FTE)broadband intern(NA-34D)to assist Traffic Operations Center staff with
populating a database of broadband infrastructure.This database catalogs all installed public
system broadband components so that private partners can easily understand the technology
Engineering available to leverage. R $ 10,390 $ 10,390 N
Seasonal Youth AmeriCorps Program position to administer the Engineering DepartmenYs
planned classroom and summerjob training program for high school students and classroom
and job shadowing program forjunior high students related to working for the City's
Engineering Department who would consider the architecture/engineering/construction field
Engineering as a career choice. R $ 8,500 $ 8,500 N
Seasonal(0.50 FTE)business administration intern position(NA-34C)in the Engineering
Department to assist our three full time positions with an every growing workload. The three
full time administrative staff are regularly exceeding the City's compensation time maximum
and incurring overtime to complete their required job assignments on a timely basis as
needed to support on-going capital projects and continued growth in broadband services with
Engineering in the city. R $ 17,639 $ 17,639 N
Smartphone for the Facilities Manager.The phone is required in order for the manager to
more efficiently respond to service requests,communicate with employees,and maintain
contact with contractors 24/7 as the primary point of contact for City Hall,City Hall Annex,
Engineering Historic Federal Building,and the Multicultural Family Center. R $ 624 $ 624 Y
Implementation of priority based budgeting for the operating budget and recurring online
priority based budgeting software cost to continue the process.The implementation of priority
based budgeting would allow the ability to budget for equity in addition to other City Council
goals and priorities.Implementation of priority based budgeting in the operating budget will
require a significant investment of staff time and a consultant is required to train staff on
Finance priority based budgeting and assist the teams of staff involved in implementing the process. R $ 32,000 $ (16,106) $ 15,894 N
Creation of an Office of Innovation,which would be a division of the Finance Department.
This request would fund a full-time Chief Innovation Officer(GE-40B)and a full-time Senior
Performance and Management Specialist(GE-366).The Office of Innovation would identify
improvements in the efficiency and effectiveness of City services and business processes.
Finance The primary focus of this group is to improve City operations at less cost. R $ 220,784 $(111,121) $ 109,663 N
One firefighter position as outlined in the Fire Station Expansion/Relocation capital
improvement project.This position is the third year of a five-year effort to increase the number
of positions in anticipation of staffing additional fire and/or ambulance units.The position will
increase the number of days where staffing is above minimum and also reduce the use of
Fire overtime during the build-up period before a fire station is built. R $ 91,685 $ 91,685 N
Employee Health and Wellness Program.The request funds occupational health services
that include:health risk analysis,fluid sampling and biometrics,EKG,and physical exams in
year one.The second year would include all above services plus a work performance
evaluation. In FY2023 and beyond the annual cost would be$39,700 so all services can be
repeated each year.This request seeks to reduce acute and chronic illnesses and injury,
reducing the occurrence of lost-day injuries and illness.The program also is expected to
address mental and emotional health of employees and follows the recommendations of the
Occupational Safety and Health Administration(OSHA)and the National Fire Protection
Fire Association(NFPA). R $ 32,400 $ (6,608) $ 25,792 N
Membership to the"American Ambulance Association"and ACE Data Collection Education
Subscription.Due to federally-mandated changes in ambulance cost data collection brought
on by the Bipartisan Budget Act of 2018,new rules regarding Medicare ambulance billing and
regulations will be taking effect. This project provides membership and access to education
and assistance to help meet the new requirements. Membership provides education and
templates useful in understanding and completing the required documentation to meet the
Fire newregulations. R $ 1,350 $ 1,350 Y
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact YIN
Annual subscription to the"Cardiac Arrest Registry to Enhance Survival"(CARES)program.
CARES is a secure,web-based data management system in which participating communities
enter local data and generate their own reports. This system would allow comparison
between EMS system pertormance and de-identified aggregate statistics at the local,state,or
national level. The goal is to provide a solid comparison of pertormance in EMS,as a tool to
Fire improve our practices in emergency cardiac care. R $ 1,000 $ 1,000 Y
A full-time(1 FTE)Public Health Emergency Preparedness Planner(GE-33A).The
Preparedness Planner pertorms public health and emergency preparedness planning,
response,and recovery as part of the city's health services programs,and overall city
emergency preparedness and resiliency.This position would assist in coordinating the City of
Dubuque's emergency preparedness planning efforts by assisting the Public Health Specialist
in emergency preparedness duties.
The Preparedness Planner would also coordinate the development and implementation of
emergency preparedness plans and protocols for The City of Dubuque,primarily the Health
Health Services Department. R $ 83,522 $ 83,522 N
Funding to assist landlords in keeping a desirable unit,in an under-served census tract,
vacant for up to a month to wait for a voucher holder to be able to use the unit.This program
would require qualifying landlords be in good standing with the City,be in the specific census
tracts that are under-served with vouchers,and preference will be given to 3,or more,
Housing bedroom units. R $ 125,000 $ 125,000 N
Funding to train employees within the City organization how to complete fair housing testing
throughout the community.Employees trained will be from various departments to ensure
impartial testing scenarios.This allows the City to complete Fair Housing Testing year round
Housing and as needed. R $ 30,000 $ 30,000 N
Funding for Four Mounds's Building Trades Certificate Program.Currently,the Four Mounds
construction and transitional employment pathways offer basic carpentry training,soft skills
Housing development,success coaching,and opportunities for personal development. R $ 50,000 $ 50,000 N
Funding for Four Mounds's HEART Program.The HEART youth program is in its 37th year of
operation.The program runs August through May,concurrent with the Dubuque Community
Schools academic year.The job coach is employed year-round and work on restoration
projects continues through the summer months.The City previously funded the HEART
program with Community Development Block Grant funds,however it has been determined
Housing that those funds can no longer be used. R $ 10,000 $ 10,000 Y
Funding for a Dubuque County Outreach Director for Hawkeye Area Community Action
Program(HACAP).The requested$70,000 would provide salary and benefits for this
position.The Dubuque County Outreach Director is responsible for coordination of resources
and community engagement for HACAP in both the City and County of Dubuque. This
position will be used to work with community partners to understand community needs and
gaps within those needs and to facilitate solutions.The request is for additional$20,000
Housing would provide salary and benefits for this position.The City is currently contributing$50,000. R $ 20,000 $ 20,000 Y
Funding for temporary,specified term(6 months or 0.50 FTE)Scanning Clerk(GE-25A).The
digitization of paper personnel file documents is needed to 1)provide searchable and
functional access to authorized staff,and 2)in preparation for a transition to the digital human
Human Resources resources information system within the enterprise resource planning system. R $ 21,101 $ (10,620) $ 10,481 Y
Full time(1.0 FTE)Development and Training Coordinator(GE-34A).Centralizing the
coordination of development and training activities provides the City with a more efficient,
Human Resources coordinated,and consistent development process R $ 87,767 $ (44,173) $ 43,594 Y
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact YIN
A full-time(1.0 FTE)Benefits Coordinator(GE-34A).Providing employees with the right mix of
benefits is critical to attracting and retaining talent and creating engaged employees. A
position tasked with creating/updating,managing,marketing,and administering all employee
benefits(e.g.health insurance,retirement accounts,paid time off,leaves of absence(paid or
unpaid),unemployment claims,workers'compensation,employee discount programs,
wellness programs)and a comprehensive,cost-effective benefits program,rather than
Human Resources merely transactional tasks is needed. R $ 87,767 $ (44,173) $ 43,594 N
Additional funding for a third party consultant to conduct exit interviews.Current annual
recurring funding is for only$7,500,which was approved for the fiscal year 2021's budget.
Multiple studies have shown that conducting exit interviews after an employee leaves and
using a 3rd party changes the given reason for leaving 40-63%of the time.Requested
Human Resources $8,692 but was recommended$5,056. R $ 5,056 $ 5,056 Y
Emotional Intelligence(EQ)program within the City of Dubuque,for the purposes of starting a
culture change(succession planning),providing better customer service,improving employee
retention(morale),and providing the skills and tools for employees to address problems and
resolve problems efficiently and effectively.The initial certification of this improvement
package was approved in the fiscal year 2021 budget for$60,000.In FY22 and in the
Human Resources following years this recurring funding will be used to purchase assessment tools. R $ 25,200 $ (12,683) $ 12,517 N
Funding for fifty members of the Leadership Team to attend the Dale Carnegie training
course over a five-year period with ten members a year.This was approved for fiscal year
2021;however,reoccurring funding will be needed for the remaining four years.This total five-
Human Resources year request costs$84,750.00 for the ten members a year at$1,695 per person. R $ 16,950 $ (8,531) $ 8,419 N
Multi-event racial equity community education initiative used to conduct a variety of year-long
transformational learning opportunities.Funds would be used to pay local facilitators and peer
learning council members to design and deliver training sessions. Additional funds would be
leveraged through Inclusive Dubuque,local colleges,and other supportive institutions in the
community.Events would consist of an opening keynote speaker,followed by monthly events
Human Rights involving facilitated conversations around historical events,books,films,etc. R $ 5,000 $ 5,000 N
The design,implementation,custom programming,testing and training assistance for
Cartegraph software.In FY2020 the city implemented an enterprise wide licensing model for
Cartegraph software.With this model not only are 50 additional licenses available but also
access to all of the asset"domains"available within the Cartegraph applications such as
Parks and Recreation,Storm Sewer,Signal Networks,Water,Walkability,Facilities
Information Services Management and Fleet Management are available. R $ 25,000 $ 25,000 N
A 160 hour concierge care package for professional subscriptions that supplement the
support provided through the Laserfiche LSAP subscription for two years.Laserfiche is used
by the City for electronic file storage and electronic work flows.The City began using
Laserfiche in Fiscal Year 2000 and there has not been a system review since initial
implementation.The results of an internal survey of departments indicated that additional
Information Services training is needed and most departments are not fully utilizing Laserfiche. R $ 24,000 $ 24,000 N
The support and maintenance for the City's core stack of switches located at City Hall,City
Hall Annex and Dubuque Law Enforcement Center.As the City relies more heavily network
access either to on-premise or cloud resources,there is a need to maintain and provide
Information Services priority services on the switches that make up a redundant,highly available switch stack. R $ 5,500 $ 5,500 N
Arts&Culture Supervisor(GE-28A)position for the MFC.Over the past year Leisure
Services Staff and Economic Development worked together to review and assess how the
City can partner to assist in the implementation of the Arts and Culture Master Plan and
Community Enactment Strategy.This position would coordinate with the Arts&Cultural
Affairs Coordinator in the Economic Development Department.To compliment these efforts a
second Arts and Culture position is proposed for Leisure Services at the MFC and would
focus on the programming,events,and partnership development to expand arts and culture
MFC opportunities to the youth in our community. R $ 68,206 $ 68,206 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact YIN
Full-time Teen Coordinator(GE-28A). The teen programs have been growing and which
provides the best possible,high quality equitable programs and services. A crucial part to the
increased success of these teen programs is the staff that coordinate them. A consistent
staff presence with teens increases involvement and numbers that grows the teen
programming. The goal is to reduce turnover in the seasonal positions on an annual basis so
that the teens can develop a relationship with MFC staff which in turn will increase retention
within the programs and strengthen engagement efforts.The($15,000)comes from private
MFC participant revenue which will occur for three years. R $ 52,446 $ (15,000) $ 37,446 Y
Project and Facilities Manager(GE-40).Responsibilities for programs,AmeriCorps,facilities,
and partnerships have increased for the Leisure Services Manager. The diverse workings of
the department and increased responsibilities lead to the need for a Project and Facilities
Manager for the Leisure Services Department.This position would manage capital
improvement projects for Five Flags,Grand River Center,and larger park projects. The
position would also work with budgeting,special project research,project coordination,
Parks management of department leases and agreements and Web QA's. R $ 128,518 $ 128,518 N
Contractor to maintain numerous natural and native landscapes throughout the City.In recent
years,native plants have been planted in the Bee Branch Creek Greenway,Valentine Park,
Four Mounds Park,Eagle Point Park,Creek Wood Park,32nd Street Detention Basin,and
Parks along the Catfish Creek.These areas all require a level of maintenance. R $ 30,000 $ 30,000 N
Contractor to deliver and pickup collection containers for green waste materials including
prunings,wood chips and miscellaneous tree branches and leaves. The Park Division does
not have an efficient way to haul green waste to the landfill for composting.Currently most
green waste is taken to an area at Eagle Point Park for disposal.Other City Departments also
occasionally take their small piles of green waste to Eagle Point Park.This improvement level
package will provide for a 20-yard dumpster to be delivered to a centrally located drop-off site
Parks for Park Division staff to haul their green waste to. R $ 10,000 $ 10,000 N
4 forced air gas heaters in the buildings that adjoin the Park Division greenhouse. An
improvement level package was approved in FY19 to install heaters in the greenhouse. An
additional improvement level package was approved in FY21 to complete the conversion of
boiler heat in the greenhouse to natural gas.This request would allow for 4 heaters to be
installed in the buildings connected to the greenhouse to complete the conversion from boiler
Parks heat to natural gas on the west side of the park maintenance headquarters complex. R $ (2,000) $ (2,000) N
Fuel Expense for mobile air compressor used to blow out all the Park Division water lines and
irrigation systems including the irrigation system in the Bee Branch Creek Greenway and the
Veterans Memorial site.The compressor would be also used to blow out the water lines at the
Port of Dubuque Marina.The compressor would allow for more timely usage to ensure that
nothing freezes before temperatures get too cold. This air compressor would also be used
Parks for other park maintenance projects including sidewalk replacements. R $ 500 $ 500 Y
Removal of vegetation and invasive plants along the Highway 20 corridor from Locust Street
to Grandview Ave. The edges of the woodland areas have begun to"creep"into the
Parks maintained areas of landscaping along the corridor. R $ 50,000 $ 50,000 N
Adjustment to the funding for the Bee Branch Communications Specialist position in the
Public Information Office to change from being funded 75%by stormwater funds(80072620)
and 25%general funds(10072300)to 25%stormwater and 75%general fund.This change
would allow this communications specialist to provide an additional 20 hours of
communications support to non-stormwater projects and other city departments while still
PIO allowing adequate time for Bee Branch and other stormwater-related communications efforts. R $ 46,612 $ 46,612 N
ESRI's Enterprise Advantage Program(EEAP)license purchase.The EEAP has three
components:Technical Advisory Hours,Learning and Service Credits,and baseline EEAP
functions of a yearly planning session,technical work plan,and quarterly technology
PIO webcasts. R $ 52,000 $ (21,840) $ 30,160 N
Managing and updating the Imagine Dubuque website so the comprehensive plan can
continue to be implemented. The Imagine Dubuque website is a Wordpress website that was
developed between the City of Dubuque Planning Services Department(PSD)and Teska
Associates. Currently,Teska Associates hosts,manages and updates the website at the
direction of Planning Staff. A multi-year contract with Teska Associates has concluded.
Planning Planning Staff will now need to take on the role of updating the website. R $ 5,000 $ (2,100) $ 2,900 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact YIN
Purchase of a tablet with a data plan to be used by the Associate Planner(AP). The tablet
will allow the AP to have access to necessary information while attending meetings. It will
also reduce copying of ineeting materials;thus,a more sustainable result and greater
Planning efficiency. R $ 360 $ (151) $ 209 Y
4%increase in Development Services fees to reflect actual processing costs based on
FY2021 wages and benefits.Planning Services staff reviewed the fees charged for
applications processed for the Zoning Advisory Commission,Zoning Board of Adjustment,
and Historic Preservation Commission,and reviewed by Planning Services staff. The 4°/
increase is based on an average 2°/annual increase over 2 years,since fees were last
raised in FY2019.With the 4%fee increase,annual revenue is estimated to increase by
Planning $1,896. R $ (1,895) $ (1,895) Y
Community Diversion&Prevention Coordinator position within the City of Dubuque
organization.This position will have the primary focus areas of 1)Working with the Dubuque
Police Department(DPD),Dubuque County Sheriffs Department(DCSO)and other
community partners,to develop strategies and programs to reduce the number of people
entering the jail system;2)Working with the DPD and other community partners to develop
and implement a program to identify individuals and families in need of assistance and
services to avoid contact with police or other emergency services and act as a clearing house
to connect individuals and families to these necessary services;3)Working with the DPD,
DCSO,lowa Department of Corrections,Dubuque County Attorney's Office and City of
Dubuque Attorney's Office,as well as judges and magistrates,and others heavily involved in
the criminal justice system and other community partners,to identify and develop a
sustainable approach to adult diversion,community service,and restorative practices in order
Police for individuals to avoid the negative impacts ofjail sentences or fines. R $ 88,060 $ 88,060 Y
Part-time secretary(0.33 FTE)to assist with front office data entry and phone calls.There has
been a dramatic increase in customer service phone calls resulting in data entry and the call
volume is not anticipated to decline.This position would help with coverage issues during
Public Works lunch,vacation,and sick leave. R $ 14,904 $ 14,904 N
Four Tablets and associated data plans.The tablets would be used by the Public Works
Street Maintenance Forepersons to access mobile GIS used to locate underground utilities
while working in the field. Access to mobile GIS by field staff would make the employee more
efficient in the field when following up on resident requests that are related to underground
Public Works utilities.Two tablets have been recommended. N $ 240 $ 240 Y
run time veospatiai uata Hnaiyst posiuon.in oraer to Keep up with the neeas ot a growing
municipality,infrastructure maintenance,fleet maintenance,annexation,and the ever-looming
natural disasters,the Data Analyst would focus on analysis and problem solving as it relates
to data,types of data,and relationships among data elements within a business system or
Public Works information technology(IT)system. R $ 87,167 $ 87,167 N
Assistant Public Works Director to participate in Cartegraph software conference to enhance
the skill set in information technology.This professional development would assist in
streamlining processes and data capture capabilities to mitigate duplication in workflows and
minimize human error.The Cartegraph conference offers a variety of courses in workflow
management and software engineer specific to the needs of Public Works to increase service
Public Works level. R $ 3,100 $ 3,100 N
Full time Landfill Equipment Operator(GD-08A)shared between the Landfill and the Public
Works Department(1.0 FTE)and eliminates seasonal laborers(1.68 FTE total)in the Port of
Dubuque Maintenance(0.57 FTE),Street Cleaning(0.36 FTE), and Landfill(0.75FTE)
Public Works activities.The net impact to full-time equivalents would be a reduction of 0.68 FTE. R $ 3,161 $ 3,161 N
Full-time Sanitation Driver(1.0 FTE)to be shared between yard waste and snow and ice
control and eliminates seasonal laborers(1.34 FTE total)in the Street Signs and Markings
(0.67 FTE),Refuse Collection(0.09 FTE),Yard Waste Collection(0.50 FTE),and Recycling
Collection(0.08FTE)activities. The net impact to full-time equivalents would be a reduction
Public Works of 0.34 FTE. R $ 11,121 $ 11,121 N
One Bright Signs module and 6 televisions or monitors to display information.In Public
Works,there are over 90 full-time equivalents and over four separate designated areas of
work to disperse high priority information on a daily basis.20%of adults experience
information overload according to Pew Research Center.Bright Signs offer an easy solution
Public Works to disperse filtered information to a mass group. R $ 1,500 $ 1,500 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL NetTax MVM
Department Description RIN Expense Revenue Impact YIN
Additional traffic control signs to meet the requirement of the Federal Manual of Uniform
Traffic Control Devices(MUTCD).The MUTCD requires different sized advanced warning
signs based on speed limits in the work zone. The purchase of these required signs would
lessen the need to rely on a private traffic control company to set up these work zones.
Purchase of these signs would provide the Public Work staff with the legal sized signs to set
Public Works up traffic control in higher speed work zones throughout the City. R $ 3,000 $ 3,000 N
Safety training simulator for all snow and ice control employees and solid waste employees
prior to winter operations.A simulator would allow controlled outcomes during training to
Public Works prepare for white-out and severe icing events. R $ 30,600 $ 30,600 N
Funding of department leadership to visit other leading cities throughout the country who are
activity advancing equity in their park&recreation departments.Through National
Conferences like GARE(Government Alliance on Race and Equity)and NRPA(National
Recreation and Park Association)staff have met and/or heard from other organizations
throughout the country providing impactful and innovative practices to solve complex equity
Recreation issues. R $ 3,000 $ 3,000 N
The permanent re-allocation of.67 FTE's of the Facilities Supervisor frozen position from the
Port of Dubuque Marina budget to Administration and the addition of both a seasonal
Manager(.4 FTE's)and Assistant Manager(.3 FTE's)position for the marina.Replacing the
Facilities Supervisor position in the marina budgets with the seasonal positions,reduces the
budgeted operational costs for the marina by$26,819.This reduction in costs still provides
the supports needed to operate the marina efficiently/effectively and positively impacts the
Recreation reduction of the annual budgeted subsidy. R $ 30,378 $ 30,378 N
Summer programs merger with the City of Asbury.The City of Asbury annually offers a
handful of summer youth recreation programs located within Asbury Park.Over the winter of
2020,their Recreation Director left the City of Asbury for another job opportunity. As part of
the City's evaluation of the recreation programming,they felt it could be in their best interest
to ask the City of Dubuque to absorb the programming,which would not include community
Recreation driven events nor golf programming. R $ 6,974 $ (15,500) $ (8,526) Y
Permanent deployment,ongoing replacement,and data services for 4 smartphones.During
the pandemic,3 Recreation Supervisors and 1 Golf Professional were provided with City
issued cell phones as part of their home office operations. These cell phones have been
linked to each of their office desk ShoreTel phones providing a seamless connection for
Recreation responding to both citizens and City staff. R $ 480 $ 480 Y
Increase in operating revenue for the Bunker Hill Golf Course through increases in the
following fees:$10 increase on all annual passes.The sum of these fee increases would
equate to$1,360 in additional revenue based on the FY22 usage estimates.In addition,this
request also includes a$50 increase to the College pass.Unlike other local courses whose
similar pass is Monday through Friday,our pass is good for all 7 days per week.This would
Recreation generate$150 based on FY22 usage estimates. R $ (1,510) $ (1,510) Y
Overtime in the transit administration division.This overtime would be utilized by employees
called in after hours for events such as:accident investigation,emergency driving situations,
Transit or alarms at parking ramps. R $ 2,500 $ 2,500 Y
TOTAL GENERAL FUND RECURRING PACKAGES $2,297,913 $(330,644) $1,967,269
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
NON-RECURRING DECISION PACKAGE COSTS
Airport Stand-up desks for Airport Director and Accountant N $ 2,500 $ 2,500 Y
This improvement request is for the expansion of capacity within the AmeriCorps
Program by increasing the AmeriCorps Coordinator from.28 FTE to 1.0 FTE to
support a new Youth AmeriCorps program,focused on community and civic
career exploration and skill development,expanding the currently Creating
Opportunities AmeriCorps grant.The AmeriCorps programs have reached their
capacity to expand based on match and staff hours.The Director has been
working together with community partners,such as the MultiCultural Family
Center,Four Mounds,the Leisure Services Recreation Department,the
Engineering and Arts&Culture Departments,as well as the Human Rights
Department and the City's Sustainability Department to explore expansion of the
Creating Opportunities AmeriCorps grant to include a Youth AmeriCorps
AmeriCorps program. N $ 1,420 $ 1,420 N
Full-Time Community Outreach Coordinator to work within the Equitable Fine and
Fee Reform program.This position will be located at Bunker Hill.The Community
Outreach Coordinator will work closely with the City Attorney's office,the Police
Department,Utility Billing and Human Rights departments to work directly with
community members who choose community service as a way to pay their fines
and fees.This position will work with the participants by providing guidance and
resources to successfully complete their community service,while also referring
them to resources that can help the from having to go through the program in the
future.This position will develop a successful model to help community members
AmeriCorps find success. N $ 4,220 $ 4,220 N
Three(3)AED units will be purchased for the theater and two other locations.
Currently there is only one unit in the entire Five Flags Center.Seven(7)ADA
size and weight compliant wheelchairs plus three(3)motorized scooters will aid
guests that have mobility issues traverse the distances in the Center to get to
Civic Center their events. N $ 15,000 $ 15,000 Y
The third and final phase of security cameras.This phase will place nine(9)
cameras inside the historic Five Flags Theater,at the Majestic and Bijou Rooms
as well as the hallway entrances to dressing areas in the arena and theater.
These cameras are for internal controls,as well as monitoring common public
Civic Center areas,entrances and exits to the building. N $ 13,500 $ 13,500 N
Platform to order concessions prior to stepping up to the concession stand.Three
(3)ADA compliant monitors that accommodate several languages common to the
Tri-States area would be placed at the arena and theater concessions areas.An
app would provide a touchless option for ordering and payment.This allows
social distancing as well as follows the trend in numerous restaurants and
Civic Center venues.Data can be tracked on use as well as languages used. N $ 18,000 $ 18,000 N
Interpretive venue information and three(3)way finding kiosks that would be
installed to assist guests that are English and non-English speaking.The kiosk
can assist in finding seats,restrooms,and additional locations throughout the
facility.These limit contact with ushers and allows social distancing,and limited
interaction with staff while also allowing the guest to choose the language of their
choice to gain the information and directions they seek.The kiosk can produce
Civic Center data based on usage and languages. N $ 24,000 $ 24,000 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
Installation of a back flow preventer for the ice chiller.A recent inspection by the
Civic Center Water Department noted the need to install this equipment. N $ 5,900 $ 5,900 Y
Outreach,education,and empowerment activities related to the Climate Action
Plan.The request is to fund capacity building in frontline communities while
addressing our greenhouse gas emissions reduction goal.This funding will allow
building engaging,dynamic,cross-cultural collaborations,and initiatives to
address environmental,economic,and equity issues outlined in the CAP through
creative engagement,education strategies and climate action.It will build trust
and partnerships around climate action while engaging businesses,nonprofits,
schools,faith communities,and community members as partners to begin
City Manager's Office implementation of the climate action plan at the community level. N $ 25,000 $ (12,583) $ 12,417 Y
Pay Public Works LLC to advise,assist and facilitate the City Planning
Department towards the implementation of the Dubuque Community Poverty
Reduction and Prevention Plan. The assistance is needed to move the Equitable
Poverty Prevention Plan(EPPP)from paper to implementation,and to assist as
the City of Dubuque develops one of a handful of Offices of Shared Prosperity
City Manager's Office across the country. N $ 32,900 $ (16,559) $ 16,341 Y
Equipment for the Data Analyst position in the newly-created Office of Shared
Prosperity.The position would work with City staff and partners to track progress,
a key to successfully implementing the plan.Under the direction of the Director of
OSP,the Data Analyst would work with departments and partners to collect
community-level and program-level data,analyze the data,and make
recommendations to further the goal of reducing or eliminating poverty,especially
City Manager's Office for racial minorities and other identified vulnerable populations. N $ 4,220 $ (39,263) $(35,043) N
Equipment for the Part-time Administrative Assistant position in the newly-created
Office of Shared Prosperity. To support the Director of OSF,Community
Engagement Coordinator,and Data Analyst,a.66 FTE administrative assistant is
being requested. The three positions this individual supports will spend a
significant amount of time in meetings with internal departments,community
City Manager's Office organizations,and individual residents. N $ 2,950 $ (15,861) $(12,911) N
An additional AmeriCorps and a dedicated laptop for that person's work to foster
youth engagement efforts related to the City's arts and culture related
programming in support of ongoing implementation of the City's Arts and Culture
Master Plan.The balance of the full funding needed to add this AmeriCorps will
be included in the City's AmeriCorps upcoming grant request to be written and
Economic Development submitted by the AmeriCorps. N $ 2,800 $ 2,800 N
Hiring a consultant to facilitate goal setting and strategic planning by the
Commission.This is identified as a non-recurring IP but would likely be repeated
every other or every 3 years based on changes to the Commission roster and
Economic Development progress being made with the Arts&Culture Master Plan. N $ 1,600 $ 1,600 Y
Part-time(0.73 FTE)Utility Locator(GE-24C)to assist with the locating of buried
City utilities(storm sewer,sanitary sewer,water main,fiber optics,electrical,etc.)
as part of the lowa One Call service.The part-time Utility Locator would improve
the efficiency of the current full-time Utility Locator position within the Engineering
Engineering Department. N $ 1,050 $ 1,050 Y
4-wheel drive SUV or pickup for Traffic Operations staff.The traffic operations
staff position needs the ability to go onto unimproved construction sites,jump
curbs,work in snow,etc.in performance of their work.Additionally,a small car is
not conducive to carrying traffic paint and aerosol cans,lathe,flags,step ladders,
Engineering and other electronic equipment. N $ 7,500 $ 7,500 Y
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
Seasonal(0.50 FTE)Equity Job Training Content Development Intern(NA-46F)
to develop classroom and summer job training materials for high school students
and classroom and job shadowing materials for junior high students related to
working for the City's Engineering Department who would consider the
Engineering architecture/engineering/construction field as a career choice. N $ 13,141 $ 13,141 N
Seasonal Youth AmeriCorps Program position to administer the Engineering
DepartmenYs planned classroom and summer job training program for high
school students and classroom and job shadowing program for junior high
students related to working for the City's Engineering Department who would
Engineering consider the architecture/engineering/construction field as a career choice. N $ 2,400 $ 2,400 N
Smartphone for the Facilities Manager.The phone is required in order for the
manager to more efficiently respond to service requests,communicate with
employees,and maintain contact with contractors 24/7 as the primary point of
contact for City Hall,City Hall Annex,Historic Federal Building,and the
Engineering Multicultural Family Center. N $ 380 $ 380 Y
Replacement of the recycled desktop computer that was installed in the Utility
Billing Consult Room.The replacement cycle of a desktop is every 4 years and
monitors are replaced every 8 years.This request replaces both the desktop and
Finance the monitors. N $ 2,275 $ 2,275 Y
The one-time cost of implementation of priority based budgeting for the operating
budget and recurring online priority based budgeting software cost to continue the
process.The implementation of priority based budgeting would allow the ability to
budget for equity in addition to other City Council goals and priorities.
Implementation of priority based budgeting in the operating budget will require a
significant investment of staff time and a consultant is required to train staff on
priority based budgeting and assist the teams of staff involved in implementing
Finance the process. N $ 50,000 $ (25,165) $ 24,835 N
Creation of an Office of Innovation,which would be a division of the Finance
Department.This request would fund a full-time Chief Innovation Officer(GE-
40B)and a full-time Senior Performance and Management Specialist(GE-36B).
The Office of Innovation would identify improvements in the efficiency and
effectiveness of City services and business processes.The primary focus of this
Finance group is to improve City operations at less cost. N $ 39,075 $ (19,666) $ 19,409 N
Membership to the"American Ambulance Association"and ACE Data Collection
Education Subscription.Due to federally-mandated changes in ambulance cost
data collection brought on by the Bipartisan Budget Act of 2018,new rules
regarding Medicare ambulance billing and regulations will be taking effect. This
project provides membership and access to education and assistance to help
meet the new requirements. Membership provides education and templates
useful in understanding and completing the required documentation to meet the
Fire new regulations. N $ 540 $ 540 Y
Installation of a mezzanine above a portion of the apparatus parking area inside
Fire Headquarters. Due to the need to maintain various supplies and spare
equipment,storage space is currently insufficient at Fire Headquarters. Fire
Headquarters is land-locked,and using a mezzanine would be a cost-effective
way to add storage space.The request would create an expanded metal
mezzanine over a portion of the apparatus floor allowing for storage of small
items such as hazardous materials supplies,chemical suits,firefighting foam
Fire concentrate,and spare firefighting tools. N $ 28,000 $ 28,000 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
Eighteen(18)security cameras to be placed inside the Grand River Center
(GRC).Currently the GRC has cameras on the loading dock and an internal
system for the employee service back of house.The internal system was
installed in 2003 with only minor updates since that time.No security monitoring
system is in place for all the public areas,as well as entrances and exits of the
GRC building. N $ 31,730 $ 31,730 N
A full-time(1 FTE)Public Health Emergency Preparedness Planner(GE-33A).
The Preparedness Planner performs public health and emergency preparedness
planning,response,and recovery as part of the city's health services programs,
and overall city emergency preparedness and resiliency.This position would
assist in coordinating the City of Dubuque's emergency preparedness planning
efforts by assisting the Public Health Specialist in emergency preparedness
duties.
The Preparedness Planner would also coordinate the development and
implementation of emergency preparedness plans and protocols for The City of
Health Dubuque,primarily the Health Services Department. N $ 4,050 $ 4,050 N
Health Stand-up desk for the Confidential Account Clerk. N $ 750 $ 750 Y
A blow dart/blowpipe kit which animal control could use in tight spaces where a
tranquilizer gun is not appropriate.When animal control encounters these
aggressive animals inside a home,it is often safer for the animal and the animal
Health control officer if the animal is lightly tranquilized before handling. N $ 600 $ 600 Y
A temporary,specified term(6 months or 0.50 FTE)Scanning Clerk(GE-25A).
The digitization of paper personnel file documents is needed to 1)provide
searchable and functional access to authorized staff,and 2)in preparation for a
transition to the digital human resources information system within the enterprise
resource planning system.The selected enterprise resource planning system is
slated for Fall 2022.Because essentially no Human Resources documents prior
to October 2019 have been maintained in other than on paper or in a paper
file/folder system,all would need to be scanned to progress to a digitized storage
Human Resources system. N $ 2,410 $ (1,213) $ 1,197 Y
Full time(1.0 FTE)Development and Training Coordinator(GE-34A).
Centralizing the coordination of development and training activities provides the
Human Resources City with a more efficient,coordinated,and consistent development process N $ 3,680 $ (1,852) $ 1,828 Y
A full-time(1.0 FTE)Benefits Coordinator(GE-34A).Providing employees with
the right mix of benefits is critical to attracting and retaining talent and creating
engaged employees. A position tasked with creating/updating,managing,
marketing,and administering all employee benefits(e.g.health insurance,
retirement accounts,paid time off,leaves of absence(paid or unpaid),
unemployment claims,workers'compensation,employee discount programs,
wellness programs)and a comprehensive,cost-effective benefits program,rather
Human Resouces than merely transactional tasks is needed. N $ 3,680 $ (1,852) $ 1,828 N
Consultant to conduct an assessment of the equity impacts of the City of
Dubuque's fines and fees.The purpose would be to identify ways to address the
manner in which the cumulative effects of fines and fees can hinder economic
stability for the most vulnerable populations in our community,including people of
color,immigrants,and refugees. Elements of the assessment would include: 1)
conducting a community survey and focus groups,2)collecting and analyzing the
data,including the fiscal and budgeting impact of both the current structure and
Human Rights proposed reforms;and 3)developing a communication strategy and messaging. N $ 56,500 $ 56,500 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
Consultant to develop and populate equity indicators and supporting indicators in
Socrata,the performance management software.Development of the indicators
would include researching best practices,identifying data sources,and
developing community-wide indicators and contributing indicators for the following
equity areas:Economic Wellbeing,Transportation,Housing,Health,Education,
Human Rights Criminal Justice,and Arts and Culture. N $ 50,000 $ 50,000 N
Train-the-trainer program to develop a culturally appropriate leadership
development project to engage communities of color and other underrepresented
communities to actively participate in civic life.Funds would be used to cover the
Human Rights costs of bringing two trainers to Dubuque for a two-day training program. N $ 3,510 $ 3,510 Y
Multi-event racial equity community education initiative used to conduct a variety
of year-long transformational learning opportunities.Funds would be used to pay
local facilitators and peer learning council members to design and deliver training
sessions. Additional funds would be leveraged through Inclusive Dubuque,local
colleges,and other supportive institutions in the community.Events would consist
of an opening keynote speaker,followed by monthly events involving facilitated
conversations around historical events,books,films,etc.Requested$25,000 but
Human Rights was only recommended$5,000 in the recurring. N $ 25,000 $ 25,000 N
A consultant to assess the Human Rights roles in our organization and the
commission.The 2019 Analysis of Impediments to Fair Housing recommended a
goal of advancing equity through fair housing advocacy,education,and
enforcement.The consultant found that one of the barriers to meeting this goal
was Human Rights Commission effectiveness,based on the low numbers of fair
housing complaints and the high indication of community member concern.The
consultant recommended that the City make it a high priority to assess the
Human Rights Commission and support capacity building efforts,including
Human Rights publication of a strategic plan. N $ 24,050 $ 24,050 N
Installation of a Firewall between the Airport and the City Core Network.Currently
access between the sites is controlled via rules in the City's main firewall along
with an older firewall.The Airport has public access along with vendor access on
their network.Best practice would place a new firewall between these two
Information Services segments of the City's network. N $ 7,500 $ 7,500 Y
80 hours of consultant services to evaluate and make recommendations on the
design,configuration,synchronization status,and Domain Naming Service(DNS)
configuration of the City's Active Directory(AD)environment.This evaluation will
be helpful to not only identify and remedy any issues with the user and device
Information Services environment but also fully document the current operational schema. N $ 14,400 $ 14,400 Y
Equipment for Full-time Teen Coordinator(GE-28A). The teen programs have
been growing and which provides the best possible,high quality equitable
programs and services. A crucial part to the increased success of these teen
programs is the staff that coordinate them. A consistent staff presence with
teens increases involvement and numbers that grows the teen programming.
The goal is to reduce turnover in the seasonal positions on an annual basis so
that the teens can develop a relationship with MFC staff which in turn will
MFC increase retention within the programs and strengthen engagement efforts. N $ 1,420 $ 1,420 Y
Addition of 4 Computers to Public Computer Lab.The MFC renovations
increased the number of computer work station areas in the public computer lab.
The increases in programming and access prior to renovation increased the need
MFC for more computers for public access. N $ 6,000 $ 6,000 Y
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
Arts&Culture Supervisor(GE-28A)position for the MFC.Over the past year
Leisure Services Staff and Economic Development worked together to review
and assess how the City can partner to assist in the implementation of the Arts
and Culture Master Plan and Community Enactment Strategy.This position
would coordinate with the Arts&Cultural Affairs Coordinator in the Economic
Development Department.To compliment these efforts a second Arts and
Culture position is proposed for Leisure Services at the MFC and would focus on
the programming,events,and partnership development to expand arts and
MFC culture opportunities to the youth in our community. N $ 1,270 $ 1,270 N
Creation and installation of additional pollinator areas throughout the park
system.Currently there are pollinator beds at AY McDonald Park,Pyatigorsk
Park,and Eagle Point Park. Additional areas have been planted with native plant
species which also create pollinator habitat. It is estimated to cost$6,000 an
acre to convert an acre of turf to native and pollinator habitat.Each acre could be
prioritized for a specific park.This funding could provide for pollinator areas at
Parks Murphy Park,Flora Park,and other park locations. N $ 42,000 $ 42,000 N
Project and Facilities Manager(GE-40).Responsibilities for programs,
AmeriCorps,facilities,and partnerships have increased for the Leisure Services
Manager. The diverse workings of the department and increased responsibilities
lead to the need for a Project and Facilities Manager for the Leisure Services
Department.This position would manage capital improvement projects for Five
Flags,Grand River Center,and larger park projects. The position would also
work with budgeting,special project research,project coordination,management
Parks of department leases and agreements and Web QA's. N $ 10,648 $ 10,648 N
Consultant to perform a study/analysis/assessment of Miller Riverview
Campground. This study/analysis/assessment would encompass but not be
limited to evaluation of usage,water levels and closures,financial review,trends
in camping,engagement of campground patrons,review of Chaplain Schmitt
Island plans,space use,revenue opportunities/enhancements,amenity review,
economic impact,data analysis,evaluation of current infrastructure,racial equity
considerations related to camping,research with all national and state regulatory
Parks agencies. N $ 50,000 $ 50,000 N
Mobile air compressor used to blow out all the Park Division water lines and
irrigation systems including the irrigation system in the Bee Branch Creek
Greenway and the Veterans Memorial site.The compressor would be also used
to blow out the water lines at the Port of Dubuque Marina.The compressor would
allow for more timely usage to ensure that nothing freezes before temperatures
get too cold. This air compressor would also be used for other park maintenance
Parks projects including sidewalk replacements. N $ 20,000 $ 20,000 Y
4 forced air gas heaters in the buildings that adjoin the Park Division greenhouse.
An improvement level package was approved in FY19 to install heaters in the
greenhouse. An additional improvement level package was approved in FY21 to
complete the conversion of boiler heat in the greenhouse to natural gas.This
request would allow for 4 heaters to be installed in the buildings connected to the
greenhouse to complete the conversion from boiler heat to natural gas on the
Parks west side of the park maintenance headquarters complex. N $ 20,000 $ 20,000 N
Upgrading the Zoning Enforcement Officer's vehicle from a compact car to a
sport utility vehicle(SUV).Poor traction,low clearance and lack of all-wheel drive
hinders ability to perform daily field inspection duties for code enforcement staff.
The City's Equipment Maintenance Supervisor performed an inspection of the
2009 Ford Focus SE and approved replacement and recommends upgrade to an
Planning SUV. N $ 11,690 $ (4,910) $ 6,780 Y
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
Purchase of a tablet with a data plan to be used by the Associate Planner(AP).
The tablet will allow the AP to have access to necessary information while
attending meetings. It will also reduce copying of ineeting materials;thus,a more
Planning sustainable result and greater efficiency. N $ 920 $ (386) $ 534 Y
Full time Geospatial Data Analyst position.In order to keep up with the needs of
a growing municipality,infrastructure maintenance,fleet maintenance,
annexation,and the ever-looming natural disasters,the Data Analyst would focus
on analysis and problem solving as it relates to data,types of data,and
relationships among data elements within a business system or information
Public Works technology(IT)system. N $ 8,125 $ 8,125 N
Soundproofing tiles to apply to the walls in the open call center area of Public
Works and to purchase three large hanging acoustic dividing panels.Currently,
phone calls can be heard throughout the building.There is no privacy given to
residents who call in with concerns or request accommodations.If there are
vendors,prospective employees,or residents in the waiting area,they are able to
Public Works overhear all telephone conversations. N $ 3,185 $ 3,185 Y
Part-time secretary(0.33 FTE)to assist with front office data entry and phone
calls.There has been a dramatic increase in customer service phone calls
resulting in data entry and the call volume is not anticipated to decline.This
Public Works position would help with coverage issues during lunch,vacation,and sick leave. N $ 4,500 $ 4,500 N
One Bright Signs module and 6 televisions or monitors to display information.In
Public Works,there are over 90 full-time equivalents and over four separate
designated areas of work to disperse high priority information on a daily basis.
20%of adults experience information overload according to Pew Research
Center.Bright Signs offer an easy solution to disperse filtered information to a
Public Works mass group. N $ 3,000 $ 3,000 N
Impact trailer to be used on high speed streets including the Central Ave and the
Northwest Arterial.These safety devices are used to help reduce the damage to
structures,vehicles,motorists,and maintenance staff when working in high
speed work zones.The trailer is designed to redirect motorists away from work
zones and the impact attenuators lessen the severity of accident which provides
Public Works another level of safety to maintenance staff. N $ 30,242 $ 30,242 N
Four tablets and associated data plan.The tablets would be used by the Public
Works Street Maintenance Forepersons to access mobile GIS used to locate
underground utilities while working in the field. Access to mobile GIS by field
staff would make the employee more efficient in the field when following up on
resident requests that are related to underground utilities.Two tablets have been
Public Works recommended. N $ 1,820 $ 1,820 Y
Grapple bucket purchase to allow Public Works to respond more efficiently to an
event which causes widespread yard debris generation(storm damage).This
Public Works bucket will also enable staff to assist Housing in citation removals. N $ 22,000 $ 22,000 N
One trailer mounted,variable message board.This unit would be used to provide
the driving public additional information related to detours at work zone sites on
Public Works high volume roadways.Estimated life of the message board is 15 years. N $ 17,000 $ 17,000 N
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2022
ADDL ADDL Net Tax MVM
Department Description R/N Expense Revenue Impact Y/N
A vehicle to be used by recreation and Multicultural Family Center(MFC)staff to
transport the Rec&Roll trailer as well as materials and supplies to programs and
services.When the Rec&Roll trailer program began in 2017 it was in the
community for 19 events and programs.During the 2019 season it became part
of over 55 community events and programs and has proven to be a positive
benefit for community and partner engagement.Due to the trailers demand,this
has added over 200 hours to their everyday responsibilities.Having a Recreation
Division vehicle able to haul the trailer,would divert those hours away from Park
Recreation staff and allow for Recreation staff to provide that service. N $ 36,700 $ 36,700 Y
Permanent deployment,ongoing replacement,and data services for 4
smartphones.During the pandemic,3 Recreation Supervisors and 1 Golf
Professional were provided with City issued cell phones as part of their home
office operations. These cell phones have been linked to each of their office
desk ShoreTel phones providing a seamless connection for responding to both
Recreation citizens and City staff. N $ 1,400 $ 1,400 Y
This improvement request is for the upgrade of the departmenfs 2012 MV1 with
an electric ADA accessible van.The City has recieved an FTA grant to add
electric vehicles into iYs fleet.The grant would pay for approximtely 80%of the
Transit initial purchase of the van. N $ 27,970 $ (46,750) $(18,780) Y
TOTAL GENERAL FUND NON-RECURRING PACKAGES $846,121 $(186,060) $660,061
SUMMARY OF ALL DECISION(IMPROVEMENT)PACKAGES FOR NON-PROPERTY TAX FUNDS Fiscal Year 2o2z
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Yes/No
MEDIA SERVICES FUND
Additional printing funds needed to upgrade the City News utility bill insert
newsletter from a grayscale(black and white)publication to a full-color
PIO publication. R $ 2,850 $ 2,850 N
For the Dues&Memberships budget to allow two additional PIO staff to
receive the continuing education and membership benefits of the City&
PIO County Communicators and Marketers Association(3CMA). R $ 445 $ 445 N
Funds marketing/promotion for City Expo and strategic
marketing/promotional campaigns for City services,programs,and initiatives
that may not have dedicated marketing budgets but need to be promoted
over the course of the fiscal year.In addition to traditional advertising
methods,these additional funds would allow additional promotional efforts
utilizing outdoor advertising such as City bus wraps and billboards,social
media and other digital promotions to be considered,depending upon the
PIO campaign. R $ 4,000 $ 4,000 N
Hire a professional photographer to take photos of City amenities,attractions,
etc.and new photos are needed for use in City publications,on the City
website,and in City social media posts.More specifically,new photos are
PIO needed to better represent the diversity of Dubuque's residents. N $ 2,000 $ 2,000 N
Subtotal Medial Services Fund $ 9,295 $ - $ 9,295
GARAGE SERVICE FUND
Fleet Maintenance Supervisor to attend the National American Public Works
Association PWX Conference each fall.This professional development offers
exposure to best practices and information to overcome obstacles with
Public Works advanced technology in fleet maintenance and various fixed assets. R $ 3,100 $ 3,100 Y
Subtotal Garege Service Fund $ 3,100 $ - $ 3,100
ENTERPRISE FUNDS
Stormwater Fund
Part-time(0.73 FTE)Utility Locator(GE-24C)to assist with the locating of
buried City utilities(storm sewer,sanitary sewer,water main,fiber optics,
electrical,etc.)as part of the lowa One Call service.The part-time Utility
Locator would improve the efficiency of the current full-time Utility Locator
Engineering position within the Engineering Department. R $ 8,584 $ 8,584 Y
Funding to maintain and rehab detention basins.Maintenance includes such
things as mowing,vegetation removal,debris removal.Rehab includes minor
grading and re-seeding.The additional funding will cover the anticipated
additional expenses associated with maintaining the Bee Branch Creek and
adjacent floodplain which functions as a detention basin during heavy
rainstorms.The addition$10,000 will allow the City to address needed
Engineering detention basin maintenance related issues on a more timely basis. R $ 10,000 $ 10,000 Y
Seasonal employee for the upper Bee Branch Creek Greenway. The Park
Division took over full maintenance responsibility of the greenway corridor in
2020. After a full season of maintenance,it has been determined additional
Parks staff is needed to maintain the corridor during the park season. R $ 15,005 $ 15,005 Y
SUMMARY OF ALL DECISION(IMPROVEMENT)PACKAGES FOR NON-PROPERTY TAX FUNDS Fiscal Year 2o2z
Department Description �N ADDL ADDL Net Tax MVM
Expense Revenue Impact YeslNo
Mobile air compressor used to blow out all the Park Division water lines and
irrigation systems including the irrigation system in the Bee Branch Creek
Greenway and the Veterans Memorial site.The compressor would be also
used to blow out the water lines at the Port of Dubuque Marina.The
compressor would allow for more timely usage to ensure that nothing freezes
before temperatures get too cold. This air compressor would also be used for
Parks other park maintenance projects including sidewalk replacements. N $ 5,000 $ 5,000 Y
Subtotal Stormwater Fund $ 38,589 $ - $ 38,589
Water Fund
Part-time(0.73 FTE)Utility Locator(GE-24C)to assist with the locating of
buried City utilities(storm sewer,sanitary sewer,water main,fiber optics,
electrical,etc.)as part of the lowa One Call service.The part-time Utility
Locator would improve the efficiency of the current full-time Utility Locator
Engineering position within the Engineering Department. R $ 8,584 $ 8,584 Y
Elimination of a full-time Water Plant Operator(0E-166)and the addition of a
full-time Water Operations Supervisor(GE-366).The plant presents daily
opportunities and challenges that require in depth problem solving and data
analysis beyond oversight management from the department manager.The
current practice of having all plant responsibilities from day to day operations
to regulatory mandates handled solely by the department manager has led to
Water inefficiencies. R $ 17,383 $ 17,383 Y
Portable generator to serve as auxiliary power to the Olympic Heights Pump
Station in the event of an emergency power outage. The United States
Environment Protection Agency states that,"Power loss can have
devastating impacts on drinking water and wastewater utilities and the
communities they serve". The Olympic Heights Pumping Station does not
currently have standby auxiliary power and those water customers would be
Water impacted by a power outage at the pump station. N $ 50,000 $ 50,000 Y
Subtotal Water Fund $ 75,967 $ - $ 75,967
ROAD USE TAX FUND
Subtotal Road Use Tax Fund $ - $ - $
Sanitary Sewer Fund
Hands-free communication headsets to be used when operating the sewer jet
or sewer vac machine.The headsets provide hearing protections and hands-
free communication by using wireless technology which allows workers with
communicate with each other as if they were on a conference call.Work site
Public Works communication is vital for both safety and for worker productivity. N $ 5,300 $ 5,300 Y
Part-time(0.73 FTE)Utility Locator(GE-24C)to assist with the locating of
buried City utilities(storm sewer,sanitary sewer,water main,fiber optics,
electrical,etc.)as part of the lowa One Call service.The part-time Utility
Locator would improve the efficiency of the current full-time Utility Locator
Engineering position within the Engineering Department. R $ 8,584 $ 8,584 Y
Arc flash risk assessment of 17 lift stations(including 181 individual devices)
and the WRRC Facility(including 710 individual devices).The assessment
consists of the following 3 phases:Phase 1-Data collection,Phase 2-
Engineering Analysis,Phase 3-Labels,Label Deployment,and Training.
OSHA requires employers to pertorm a PPE hazard assessment to determine
necessary PPE.This assessment satisfies OSHA and NFPA 70E
WRRC requirements for the assessment of workplace electrical safety. N $ 71,500 $ 71,500 Y
Subtotal Sanitary Sewer Fund $ 85,384 $ - $ 85,384
SUMMARY OF ALL DECISION(IMPROVEMENT)PACKAGES FOR NON-PROPERTY TAX FUNDS Fiscal Year 2o2z
Department Description �N ADDL ADDL Net Tax MVM
Expense Revenue Impact Yes/No
Solid Waste Fund
Twenty electronic logging devices to launch a pilot program in Solid Waste
activity.Electronic logging devices(ELDs)synchronize with the vehicle's
engine;thereby capturing data on off/on status of the engine,whether the
vehicle is moving,miles are driven,and duration of engine operation.Using
an ELD can assist in preemptive identification of driver habits to ensure
Public Works proper maintenance of vehicles are happening. N $ 8,268 $ 8,268 Y
Additional refuse(trash)tipper carts to meet the need of customers who
currently subscribe to either a basic container plus an additional 34 gallon
Public Works container or a 50 gallon container plus an additional 50 gallon container. R $ 35,000 $ 35,000 Y
Additional recycling tipper carts to meet the demand of customers who prefer
a more convenient way to manage their recycling.Prior fiscal year 2017,
customers only option to manage their recycling was to manually lift an 18-
galllon bin(s)from their home to the curbside and/or alley line.To make
recycling more convenient for customers,City Council approved a recycling
Public Works tipper cart on wheels program. R $ 5,000 $ 5,000 Y
Purchase of AaqualTools CartBlaster,a tipper cart cleaning system.
AaqualTools CartBlaster is designed to clean the interior surface of any open
head trash container in 1 to 5 minutes depending on detergent,volume(gpm)
and wash water emperature.Currently,when staff delivers and/or returns a
tipper cart the staff has to manually spray down carts.This becomes time
consuming when there are multiple carts to spray.The new tool would
Public Works improve staff ability to clean out the cart quicker and more efficiently. N $ 5,000 $ 5,000 Y
Full-time Sanitation Driver(1.0 FTE)to be shared between yard waste and
snow and ice control and eliminates seasonal laborers(1.34 FTE total)in the
Street Signs and Markings(0.67 FTE),Refuse Collection(0.09 FTE),Yard
Waste Collection(0.50 FTE),and Recycling Collection(0.08FTE)activities.
Public Works The net impact to full-time equivalents would be a reduction of 0.34 FTE. R $ 41,762 $ (25,936) $ 15,826 N
Subtotal Solid Waste Fund $ 95,030 $ (25,936) $ 69,094
Landfill
Full time Landfill Equipment Operator(GD-08A)shared between the Landfill
and the Public Works Department(1.0 FTE)and eliminates seasonal laborers
(1.68 FTE total)in the Port of Dubuque Maintenance(0.57 FTE),Street
Cleaning(0.36 FTE), and Landfill(0.75FTE)activities.The net impact to full-
Public Works time equivalents would be a reduction of 0.68 FTE. R $ 42,508 $ (28,916) $ 13,592 N
An additional 40 yard recycling roll off container at the Dubuque Metropolitan
Solid Waste Agency(Landfill)to replace a container that was relocated to
Peosta.This would allow for customers to always have access to a recycling
container at the Landfill.Currently,whenever the onsite container is being
hauled to the processor,there is not container onsite for customers to use if
Public Works they have recycling items. N $ 10,000 $ 10,000 Y
An additional 20 yard glass recycling container to expand the glass collection
program.Currently,there are only two locations with glass recycling
containers in Dubuque County,one at the City of Dubuque Municipal Service
Center and one at the Landfill.The Agency would like to expand the glass
recycling program to another community in Dubuque County to offer a more
Public Works convenient location for county residents. N $ 6,700 $ 6,700 Y
An equipment press which would be used by the landfill mechanic during
repairs of landfill equipment. Many times while repairing heavy equipment,a
Public Works press is needed to separate parts needing repair. N $ 6,500 $ 6,500 Y
SUMMARY OF ALL DECISION(IMPROVEMENT)PACKAGES FOR NON-PROPERTY TAX FUNDS Fiscal Year 2o2z
Department Description �N ADDL ADDL Net Tax MVM
Expense Revenue Impact YeslNo
Grapple bucket which would enable staff to load tires more efficiently and
allow for better management of the raw compost material.This bucket would
also allow the Agency to respond more efficiently to an event which causes
Public Works widespread yard debris generation(storm damage). N $ 22,000 $ 22,000 Y
Funding for the Landfill Foreperson to participate in the Dale Carnegie
Leadership training.This professional development would allow the Landfill
foreperson to continue to develop the skills necessary for the position,which
Public Works aligns with the Agency's mission statement. N $ 1,500 $ 1,500 Y
Subtotal Landfill Fund $ 89,208 $ (28,916) $ 60,292
TOTAL NON-PROPERTY TAX FUND PACKAGES $ 396,573 $ (54,852) $ 341,721
TOTAL IMPROVEMENT PACKAGES ALL FUNDS $3,540,607 $ (571,556)$2,969,051
Dubuque
THE CITY OF �
All•America Cily
DuB E �„����Nk�����.
;� ��►
� �
Maste iece on the Mississi i Z°°''Z°iZ`z°13
rP pp zoi�*zoi9
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Set Public Hearing for Resolution Establishing Maximum Property Tax
Dollars for Fiscal Year 2022
DATE: February 11, 2021
The purpose of this memorandum is to submit the resolutions setting the public hearing
and authorizing the publication of official notices for the public hearing required in
connection with the adoption of the the Fiscal Year 2022 Resolution Establishing
Maximum Property Tax Dollars.
Prior to setting the public hearing and publishing the notice of public hearing, the
City Council can increase or decrease this amount. Once this amount is
established and set for public hearing, the City Council cannot increase it at the
public hearing. After the public hearing, the maximum property tax dollars can be
approved as is or reduced, but not increased.
Senate File 634 passed during the 2019 legislative sessions, makes changes to lowa
city and county budgets and taxes for Fiscal Year 2021 and later. Additional steps have
been added to the budget approval process:
1. Determine a maximum amount of taxes that the municipality will certify to
be levied as property taxes from certain levies in the next fiscal year
(called the "total maximum property tax dollars"), and prepare a resolution
that establishes that amount of"total maximum property tax dollars" for the
next fiscal year.
2. Set a time and place for a public hearing on the resolution.
3. Hold a public hearing on the resolution, at which residents and property
owners may present oral or written objections.
4. Following the public hearing, the governing body may decrease the
proposed "maximum property tax dollars" amount but may not increase
the amount.
5. Adopt the resolution. If the "total maximum property tax dollars" amount is
greater than 102% of the current fiscal year's actual property taxes from
the identified levies, then the resolution must pass the governing body by
a two-thirds majority of the full City Council.
The maximum property tax dollars resolution is developed and adopted by City Council
during the budgeting process in order to provide targets or parameters within which the
budget recommendation will be formulated within the context of the City Council Goals
and Priorities established in August 2020. By State law, the budget that begins July 1,
2021 must be adopted by March 31, 2021.
If amount of resources recommended in the resolution is approved, the budget will be
able to fund $247,455 for annually recurring and $154,347 for non-recurring
improvement packages in the General Fund. There are many improvement packages
requested by departments in an effort to support City Council goals and priorities. You
will see that the recurring requests in the General Fund total $1,967,269 of net operating
budget impact and the non-recurring requests in the General Fund total $660,061, for a
total of$2,627,330 in improvements which exceeds the resources that will be available
for Fiscal Year 2022.
In order to provide context for the basis of the recommended maximum property tax
dollars recommended in Fiscal Year 2022, the Fiscal Year 2022 Budget and Fiscal
Policy Guidelines are attached.
The budget guidelines are developed and adopted by City Council during the budgeting
process in order to provide targets or parameters within which the budget
recommendation will be formulated within the context of the City Council Goals and
Priorities established in August 2020. The final budget presented by the City Manager
may not meet all of these targets due to changing conditions and updated information
during budget preparation. To the extent the recommended budget varies from the
guidelines, an explanation will be provided in the printed budget document. By State
law, the budget that begins July 1, 2021 must be adopted by March 31, 2021.
The Fiscal Year 2022 budget guidelines call for a 0.93% decrease in the property
tax rate, which would be a 1.62% or $12.49 tax increase for the average Dubuque
homeowner, no increase in property tax for commercial (0%, $0) and a decrease
for industrial (0.30%, $14.20) and a decrease for multi-residential (6.15%, $116.55)
properties.
2
� . .
�
Property Tax Rate -0.93% -$0.09
Average Residential Payment +1.62% +$12.49
Average Commercial Payment 0.00% $0.00
Average Industrial Property -0.30% -$14.20
Average Multi-Residential Property -6.15% -$116.55
Since 1989, the average homeowner has averaged an annual increase in costs in the
City portion of their property taxes of 1.30%, or about $7.78 a year. If the State had
been fully funding the Homestead Tax Credit, the increase would have averaged about
+$4.79 a year.
The City Council is only considering the Fiscal Year 2022 property tax rate. The Fiscal
Year 2023 - 2026 tax rates are only projections. The future budget projections will be
updated each year so that City Council will have an opportunity in the next year to
change Fiscal Year 2023.
The City property tax rate projected in these budget guidelines and impact on the
average residential property owner ($146,467 assessed value) is as follows:
.
FY 2022 10.0496 -0.93%
FY 2023 10.8220 7.69%
FY 2024 11.2619 4.06%
FY 2025 11.8419 5.15%
FY 2026 12.3401 4.21%
. . - . - . , . � . . . . .
� . . . - . . - . - . . -
FY 2021 $26,202,568
FY 2022 $26,630,342 +1.63% +1.62% +$12.49
FY2023 $29,162,508 +9.51% +7.69% +$60.07
FY 2024 $30,861,600 +5.83% +4.06% +$34.21
FY 2025 $32,907,331 +6.63% +5.15% +$45.11
FY 2026 $34,974,146 +6.28% +4.21°/a +$38.74
The recommended guideline is a +1.62% or +$12.49 increase for the average
residential property owner assuming the Homestead Property Tax Credit is fully funded
and no increase for the average commercial property owner. A one percent increase in
the tax rate will generate approximately $268,434. In order to achieve no increase to
the average residential property owner, no improvement packages would be
funded and the maintenance level budget would need to be reduced by $23,198.
3
The residential rollback factor will increase from 55.0743% in 2021 to 56.4094% or a
2.42% increase in FY 2022. The increase in the residential rollback factor increases the
value that each residence is taxed on. This increased taxable value for the average
homeowner ($80,666 taxable value in FY 2021 and $82,621 taxable value in 2022)
results in more taxes to be paid per $1,000 of assessed value.
For the current Fiscal Year 2021, Dubuque has the LOWEST property tax rate as
compared to the eleven largest cities in the state. The highest rate (Waterloo) is 81.78%
higher than Dubuque's rate, and the average is 47.76% higher than Dubuque.
Dubuque's recommended FY 2022 property tax rate is $10.0496 (decrease of 0.93%
from FY 2021).
Fiscal Year 2021 City Property Tax Rate Comparison for Eleven Largest lowa Cities
11 Waterloo $18.44
10 Council Bluffs $18.26
9 Des Moines $17.46
8 Davenport $16.78
7 lowa City $15.77
6 Cedar Rapids $15.66
5 Sioux City $14.90
4 West Des Moines $11.80
3 Ankeny $10.67
2 Ames $10.15
1 Dubuque $10.14
AVERAGE w/o Dubuque $14.99
Significant issues impacting the FY 2022 budget include the following:
1. State Funded Backfill on Commercial and Industrial Property Tax
a. Elements of the property tax reform passed by the lowa Legislature in
2013 have created a tremendous amount of uncertainty in the 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 legislators have been quoted in
the media as casting doubt on the reimbursements continuing. It is
assumed the backfill will be fully funded in FY 2022 and FY 2023.
4
2. Gaming Revenue.
a. Gaming revenues generated from lease payments from the Dubuque
Racing Association (DRA) are estimated to increase $43,621 from
$5,185,737 in FY 2021 to $5,229,358 in FY 2022 based on Fiscal Year
2019 actual plus Sports Betting. This follows a $198,633 increase from
budget in FY 2021 and a $85,928 increase from budget in FY 2020.
b. The lowa Legislature passed Sports Betting Legislation in June 2019. DRA
started Retail (On-Site) on August 27, 2019 with Mobile Wagering starting
on November 12, 2019. Diamond Jo Casino partnered with Betfair
Interactive US LLC (FanDuel Sportsbook) and they started Sports Betting
Retail in September 2019 and Mobile Wagering in September 2020. DRA
had $562,601 in Sports Book revenue and $16,141,637 in Sports Betting
handle during 2020. With an amended lease, the City began receiving
0.5% of the handle from Sports Betting in FY 2021. The City's estimated
0.5°/a of the handle from Sports Betting in FY 2022 is $80,708.
3. New multi-residential property class in Fiscal Year 2017.
a. Beginning in FY 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 3 or more units. Rental
properties of 2 units were already classified as residential property. The
State of lowa will not backfill property tax loss from the rollback on multi-
residential property.
- . . . � , � . .
2017 86.25% $331,239
2018 82.50% $472,127
2019 78.75% $576,503
2020 75.00% $691,640
2021^ 71.25% $952,888
2022 67.50% $1,371,435
2023 63.75% $1,293,125
2024 56.41 % $1,458,182
Total $7,147,139
'55.07% =Current residential rollback
^ 17% State Equalization Order in FY 2021
5
This annual loss in tax revenue of$1,371,435 in FY 2022 and $1,458,182
from multi-residential property when fully implemented in FY 2024 will
not be backfilled by the State. From Fiscal Year 2017 through Fiscal Year
2024 the City will lose $7,144,472 in total, meaning landlords will have paid
that much less in property taxes. The state did not require landlords to charge
lower rents or to make additional investment in their property.
4. Debt Reduction
a. 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. The recommended FY 2022 budget will achieve that target
throughout the 5-year CIP and also 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 lowa. In Fiscal Year 2015, the City of Dubuque used 90°/a of
the statutory debt limit. In this budget recommendation, the Mayor
and City Council are currently reviewing for Fiscal Year 2022, the use
of the statutory debt limit would be 45°/a, and by the end of the
recommended 5-Year Capital Improvement Program (CIP) budget in
Fiscal Year 2026, the City of Dubuque would be at 37% of the
statutory debt limit. Projections out 10 years to Fiscal Year 2031
show the City of Dubuque at 18% 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% 870�0
0
° 79% 72% 79% 74% o
0 86% 69/0 63% 70/0 66% 66% 62%
75/o �
56%
50% o
50% 46/0 45% 44% 45% 40% o
37/o 0
33/0 29% 25%
0 21% 18%
25/o
-%
TI TI TI TI TI TI TI TI TI TI TI TI TI TI T TI TI
� � � � � � � � � � � � � � � � �
j � � � j N N N N N N W N N N W W
t71 C1 V 00 t0 O s N W � U7 C! �l 00 CC O �
FY16 Adopted � FY22 Recommended
6
b. The City will issue $55,741,414 in new debt in the recommended 5-year CIP,
mostly for fire truck and pumper replacements, fire station expansion, road
improvements, sanitary sewer improvements, water improvements, additional
downtown parking, and maintenance of Five Flags.
Project FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
Airport Rehab Taxiway A $ 577,000 $ 283,000 $ 860,000
Downtown Parking Ramp GDTIF $ 4,050,000 $ 9,078,000 $ 6,000,000 $19,128,000
Finance General Ledger Software $ —
Fire HVAC Headquarters $ 169,184 $ 84,894 $ 254,078
Fire Ladder&Pumper $ 1,582,154 $ 425,460 $ 433,000 $ 2,440,614
Fire Station Expansion $ 700,620 $3,194,028 $ 3,894,648
Five Flags GDTIF $ 5,750,000 $ 5,750,000
Riverfront Docks/Property
Acquisition GDTIF $ 1,300,000 $ 1,300,000
Smart Parking GDTIF $ 222,000 $ 450,000 $ 672,000
Solid Waste Collection Vehicles $ 175,000 $ 235,000 $ 55,000 $ 265,000 $ 106,000 $ 836,000
Sanitary Sewer Projects $ 5,170,303 $ 4,224,310 2871401 4700000 1296786 $18,262,800
Water Projects $ 655,000 $ 655,000
Total New Debt $12,277,457 $14,583,494 $15,763,755 $6,381,620 $5,046,814 $54,053,140
In addition, the City will access $3,424,668 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 2022 2023 2024 2025 2026 Total
Stormwater Upper Bee Branch Rail Road $ 2,394,668 $ 2,394,668
Water CIWA Purchase& Improvements $ 1,030,000 $ 1,030,000
Total Draw Downs $ 3,424,668 $ — $ — $ — $ — $ 3,424,668
7
The City will retire $96,768,118 of existing debt over the next five-years (FY22-
FY26).The following chart shows the net reduction of debt from Fiscal Year 2022 - Fiscal
Year 2026:
FY FY FY FY FY
Project 2022 2023 2024 2025 2026 Total
New Debt $ 13,084,157 $ 15,465,068 $ 15,763,755 $ 6,381,620 $ 5,046,814 $ 55,741,414
Previously
Issued SRF
Draw Downs $ 3,424,668 $ — $ — $ — $ — $ 3,424,668
Retired Debt -$16,890,599 -$18,413,294 -$19,666,659 -$20,461,290 -$21,137,410 -$96,569,252
Net Debt
Reduction -$381,774 -$2,948,226 -$3,902,904 -$14,079,670 -$16,090,596 -$37,403,170
Outstanding General Obligation (G.O.) debt on June 30, 2022 is projected to be
$107,921,270 (44.67% of the statutory debt limit), leaving an available debt
capacity of$133,694,813 (55.33%). In Fiscal Year 2016, the City was at
86.13% of statutory debt limit, so 44.67% in Fiscal Year 2022 is a 41.46°/a
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$146,790,767 on June 30, 2022 .
The total City indebtedness as of June 30, 2022, is projected to be $254,712,037
(44.67% 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 $39,958,904 less in debt as of June 30, 2022.
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.
8
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)
$25
$23.4
$22.4
$19.7 �20.5
$21.1 $21.2 $21.6 $21.6
$20
$18.1 $18.4 $18.7
$17.4 �17.1 16.9
$16.4 '
�
$15 $14.3 �
� $14.8 $14.6
0
= $13.0
� 1
$10
6.4
5.0
$5
1.0 1.0 1.0 1.0 1.0
$0
CD f� Op � O � N M � � CO f� 00 d� O �
� � � � N N N N N N N N N N M M
} } r � � � } � � � � } � � } }
L.L L.L L.L L.L L.L LL LL LL LL LL LL LL LL L.L L.L L.L
� Retired Debt � New Debt
*In Fiscal Year 2020, the City had $5,908,200 forgiven of the Bee Branch Upper
Bee Branch Loan on June 30, 2020 which increased principal payments
reflected.
c. The City also has debt that is not subject to the statutory debt limit. This debt
includes revenue bonds. Outstanding revenue bonds payable by water, sewer
and stormwater fees on June 30, 2022 will have a balance of $146,790,767. The
total City indebtedness as of June 30, 2022, is projected to be $254,712,037. The
total City indebtedness as of June 30, 2021, was $255,296,689. In FY 2022, the
City will have a projected $584,652 or 0.23% less in debt. The City is using
debt to accomplish necessary projects and to take advantage of the attractive
interest rates in the current market.
9
The following chart shows Dubuque's relative position pertaining to use of the
statutory debt limit for Fiscal Year 2022 compared to the other cities in lowa for
Fiscal Year 2020 with a population over 50,000:
Fiscal Year 2020 Legal Debt Limit Comparison for Eleven Largest lowa Cities
Rank City Legal Debt Limit Statutory Debt Percentage of Legal
(5%) Outstanding Debt Limit Utilized
11 Sioux City $ 234,052,896 $ 149,054,999 63.68 %
10 Des Moines $ 633,944,619 $ 399,100,000 62.96 %
9 Davenport $ 362,087,372 $ 207,415,000 57.28 %
8 Waterloo $ 198,578,109 $ 106,207,641 53.48 %
7 Cedar Rapids 583,572,883 286,435,000 49.08 %
6 W. Des Moines $ 414,397,845 $ 203,180,000 49.03 %
5 Dubuque (FY22) $ 241,616,084 $ 108,727,970 45.00 %
4 Ankeny $ 303,268,096 $ 122,095,000 40.26 %
3 Ames $ 242,136,755 $ 64,305,000 26.56 %
2 Council Bluffs $ 256,079,718 $ 57,043,627 22.28 %
1 lowa City $ 306,678,510 $ 68,160,000 22.23 %
Average w/o Dubuque 44.68 %
Percent of Legal Debt Limit Utilized
ao�io
62.96% 63.68%
60% 57.28%
53.48%
44.68% 45.00%
47.37% 49.03%
40.26%
40%
26.56%
22.23% 22.28%
20%
0%
o�aG�'�� G\����5 P�eS P��et�� PJe�ao,e e`�y�y`L� `�aQ�aS ��o\,�e5 �a�e��o° a,e�.�o�' y�o`�e5 \o J�G�'��
� Gov� ���� Ge�.a �e O �e 5
O`� �
Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities
in lowa with a population over 50,000 and Dubuque is slightly above the average
of the other Cities.
10
Total Debt (In Millions)
$324
$302.3
$297 $290.1
$282.0 $279.9
$295.5
$270 $285.5 L $265.6 $267.4
$275.1� $255.3 $255.9 �251.5
$264.9 $248.2
$243 $252.5 $254.7 $234.7
� $244.3 $241.4 $219.1
� $216 $226.2 199.3
�
$189 179.0
$162 158.8
137.4
$135
$108 $119�
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
FY16 Adopted � FY22 Recommended
By the end of the recommended 5-Year Capital Improvement Program (CIP)
budget the total amount of debt for the City of Dubuque would be $219.1 million
(37% of the statutory debt limit) and the projection is to be at $119.5 million (18%
of statutory debt limit) within 10 years.
5. 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 declined.
11
. -
� •- •
. . . - . . .
•
Increase due to capital projects not expended before the end of the FY
FY 2016 17.52% and increase in general fund revenue
Increase due to capital projects not expended before the end of the FY
FY 2017 20.09% and additional contributions to general fund reserve
Increase due to capital projects not expended before the end of the FY
FY 2018 23.81% and additional contributions to general fund reserve
Increase due to capital projects not expended before the end of the FY
FY 2019 29.06% and additional contributions to general fund reserve
Increase due to freezing vacant positions and most capital projects due
FY 2020 31.24% to the pandemic.
FY 2021 25.21% Decrease due to planned capital expenditures
Fund Reserve as a Percent of General Fund Revenue
35
31.24%
30 29.06%
� 25 23.81% 25.21 /24.72% 23.76%
�' � 0 22.84%
� 20.09% 24.24/0 23.29%
a 20 � �
17.52%
15
10
FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26
Fiscal Year
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.
12
After all planned expenditures in FY 2021, the City of Dubuque will have a
general fund reserve of 24.83% of general fund expenses as computed by the
methodology adopted in the City's general fund reserve policy on a cash basis or
25.21% percent of general fund revenues as computed by the accrual basis
methodology used by Moody's Investors Service. The general fund reserve cash
balance is projected to be $17,166,567 on June 30, 2021 as compared to the
general fund reserve balance on an accrual basis of$17,903,632 as computed
by Moody's Investors Service.The general fund reserve balance on an accrual
basis exceeds 22% in FY 2021, which is the margin of error used to ensure the
City always has a general fund reserve of at least 20% as computed by Moody's
Investors Service.
In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2022. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has
sustained a greater than 20°/a reserve.
� i i � � i - � � .
Contribution $— $— $— $— $— $— $—
City's Spendable
General Fund Cash $21,744,160 $17,903,632. $17,903,632. $17,903,632. $17,903,632. $17,903,632. $17,903,632.
Reserve Fund
Balance
% of Projected 31.24°/a 25.21% 24.72°/a 24.24% 23.76% 23.29% 22.84%
Revenue (Moody's)
6. The Municipal Fire and Police Retirement System of lowa Board of Trustees City
contribution for Police and Fire retirement increased from 25.31% percent in FY
2021 to 26.18% percent in FY 2022 (general fund cost of$133,704 for Police and
$59,244 for Fire or a total of$192,948).
�. The already approved collective bargaining agreements for Teamsters Local
Union 120, Dubuque Professional Firefighters Association, and International
Union of Operating Engineers in FY 2022 include a 3.00% employee wage
increase. The already approved collective bargaining agreement for Teamsters
Local Union 120 Bus Operators include a 3.25% employee wage increase.Non-
represented employees include a 3.00% wage increase. Total cost of the wage
increase is $1,161,505 to the General Fund.
8. Health Insurance
The City portion of health insurance expense is projected to increase from $1,025
per month per contract to $1,086 per month per contract (based on 588
contracts) in FY 2022 (general fund cost of$297,186). 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. In FY 2017, The City went out for bid for
13
third party administrator and the estimated savings has resulted from the new
contract and actual claims paid with there being actual reductions in cost in FY
2018 (19.42%) and FY 2019 (0.35%). In addition, firefighters began paying an
increased employee health care premium sharing from 10% to 15% and there
was a 7% increase in the premium on July 1, 2018. During FY 2019, the City
went out for bid for third party administrator for the prescription drug plan there
has been savings resulting from the bid award. Based on FY 2021 actual
experience, Fiscal year 2022 is projected to have a 6% increase in health
insurance costs. Fiscal Year 2022 projections include additional prescription drug
plan savings of$219,256. Estimates for FY 2023 were increased 6%; FY 2024
were increased 7%; FY 2025 were increased 8%; and FY 2026 were increased
8%.
s. The decrease in property tax support for Transit from FY 2021 to FY 2022 is -
$17,871, which reflects decrease in motor vehicle maintenance and diesel fuel (-
$101,086); decrease in snow removal (-$36,495); decrease in machinery and
equipment (-$35,977); increase in motor vehicle maintenance outsourced
($58,815), and decrease in private contributions related to the Night Rider Route
($84,280).
Timeline of Public Input Opportunities
The Budget Office conducted community outreach with Balancing Act using print and
digital marketing and presentations.
• October: Point Neighborhood Association.
• November: The City Manager hosted an evening virtual public budget input
meeting. The Budget Office conducted a virtual community outreach session
using GoToMeeting.
• December: City staff conducted two virtual community outreach sessions using
GoToMeeting and Facebook Live streaming.
A total of 71 community members attended the virtual budget presentations.
There have been 140 page views of the Balancing Act budget simulator tool and
3 budgets have been submitted by the public as of February 1, 2021. The input
provided will be analyzed by City staff and evaluated by the City Manager for
inclusion in the Fiscal Year 2022 budget recommendation as deemed
appropriate.
Open Budget
URL: www.dollarsandcents.cityofdubuque.org
During Fiscal Year 2016, the City launched a web based open data platform. 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
14
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.
Open Expenses
URL: http://expenses.cityofdubuque.org/
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
URL:http://bit.ly/fy22budgetsim
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high-priority
budget input questions, and leave comments.
Taxpayer Receipt
URL: http://bit.ly/taxpayerreceipt
During Fiscal Year 2019, the City launched an online application which allows users to
generate an estimate of how their tax dollars are spent. The tool uses data inputted by
the user such as income, age, taxable value of home, and percentage of goods
purchased within City limits. The resulting customized receipt demonstrates an estimate
of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other
city services. This tool is in support of the City Council goal of a financially responsible
and high-perFormance organization and addresses a Council-identified outcome of
providing opportunities for residents to engage in City governance and enhance
transparency of City decision-making.
There will be six City Council special meetings prior to the adoption of the FY 2022
budget before the state mandated deadline of March 31, 2021.
The recommended resolution for maximum property tax dollars in FY 2022 is
$26,349,612 (excluding the debt service levy of$280,730) or a 1.63% increase over
Fiscal Year 2021 property tax dollars. Since the "total maximum property tax
dollars" amount is less than 102% of the current year's property taxes (1.63%
excluding the debt service levy), the resolution must pass by a simple majority
vote of the City Council.
The requested action step is for City Council to adopt the attached resolution setting the
public hearing date for the maximum property tax dollars as required by Section
384.15A of the Code of lowa. The attached resolution authorizes the City Clerk to
publish notification for a public hearing to be held on March 1, 2021.
15
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
16
Prepared by: Jennifer Larson, City of Dubuque, 50 W. 13th St. Dubuque, IA 52001, 563.589-4322
Return to: Jennifer Larson, City of Dubuque, 50 W. 131h St. Dubuque, IA 52001, 563.589-4100
RESOLUTION NO. 49-21
SETTING A PUBLIC HEARING ON THE FISCAL YEAR 2022 MAXIMUM
PROPERTY TAX DOLLARS FOR THE AFFECTED TAX LEVY TOTAL
Whereas, pursuant to State of Iowa SF634, the City of Dubuque is required to
hold a public hearing to consider the proposed Fiscal Year 2022 city maximum
property tax dollars for the affected levy total; and
Whereas, the notice of hearing must be published not less than 10 days and not
more than 20 days prior to the date of the hearing; and
Whereas, at said hearing, the City Council is required to pass a resolution
adopting the fiscal year maximum property tax dollars for the affected levy total.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA THAT:
Section 1. The Dubuque City Council will conduct a public hearing on March 1,
2021 at 6:30 p.m. virtually.
Section 2. The Director of Finance and Budget is hereby directed to prepare a
Resolution of Maximum Property Tax Dollars for the Affected Tax Levy Total with
the required information pursuant to SF634.
Section 3. The City Clerk is hereby directed to publish the notice of public
hearing pursuant to SF634.
Passed, adopted and approved this 15th day of February 2021.
Attest:
Adrienne N. Breitfelder, City Clerk
CITY NAME NOTICE OF PUBLIC HEARING-PROPOSED PROPERTY TAX LEVY CITY CODE
Dubuque Fiscal Year July 1,2021 -June 30,2022 31-288
The Cit Council will conduct a ublic hearin on the ro osed Fiscal Year Cit ro ert tax lev as follows:
Meeting Date: Meeting Time: Meeting Location:
3/1/2021 6:30 p.m. Virtual
At the public hearing any resident or taxpayer may present objections to,or arguments in favor of the proposed tax levy.
After adoption of the proposed tax levy,the Council will publish notice and hold a hearing on the proposed city budget.
City Web Site(if available): City Telephone Number:
www.cityofdubuque.org/budget 563-589-4398
lowa Department of Management Current Year Budget Year Budget Year
Certified Property Effective Property Proposed Annual
Tax Tax Maximum Property
Tax
2020/2021 2021/2022** 2021/2022 %CHG
Regular Taxable Valuation 1 2,579,355,511 2,646,230,849 2,646,230,849
Tax Levies:
RegularGeneral 2 $20,892,780 $20,892,780 $21,434,470
Contract for Use of Bridge 3 $0 $0
Opr&Maint Publicly Owned Transit 4 $1,635,441 $1,635,441 $1,601,290
Rent, Ins. Maint.Of Non-Owned Civ.Ctr. 5 $0 $0
Opr&Maint of City-Owned Civic Center 6 $0 $0
Planning a Sanitary Disposal Project 7 $0 $0
Liability,Property&Self-Insurance Costs 8 $363,759 $363,759 $444,327
Support of Local Emer. Mgmt.Commission 9 $0 $0
Emergency 10 $0 $0
Police&Fire Retirement 11 $0 $0
FICA&IPERS 12 $3,033,914 $3,033,914 $2,869,525
Other Employee Benefits 13 $0 $0
*Total 384.15A Maximum Tax Levy 14 $25,925,894 $25,925,894 $26,349,612 1.63%
Calculated 384.15A MaximumTax Rate 15 $10.05131 $9.79729 $9.95741
Explanation of significant increases in the budget:
Increase in Municipal Fire and Police Retirement System of lowa(MFPRSI)contribution rate/expense for Police and Fire retirement;
increase in self-insured health cost;and employee wage increase.
If applicable,the above notice also available online at:
https://www.facebook.com/CityOfDubuque/
https://twitter.com/CityOfDubuque
'Total city tax rate will also include voted general fund levy,debt service levy,and capital improvement reserve levy
"Budget year effective property tax rate is the rate that would be assessed for these levies if the dollars requested is not changed in the coming
budget year
FY 2022 Budget & Fiscal Policy Guidelines
Page 1
CITY OF DUBUQUE
BUDGET & FISCAL POLICY GUIDELINES
F I SCAL YEAR 2022
FY 2022 Budget & Fiscal Policy Guidelines
Page 2
Operating Budget Guidelines
The Policy Guidelines are developed and adopted by City Council during the budgeting
process to provide targets or parameters within which the budget recommendation will
be formulated, in the context of the City Council Goals and Priorities established in
August 2020. The final budget presented by the City Manager may not meet all these
targets due to changing conditions and updated information during budget preparation.
To the extent the recommended budget varies from the guidelines, an explanation will
be provided in the printed budget document. By State law, the budget that begins July 1,
2021 must be adopted by March 31, 2021.
A. RESIDENT PARTICIPATION
GUIDELINE
�
To encourage resident participation in the budget process, City Council will hold
multiple special meetings in addition to the budget public hearing for the purpose of
reviewing the budget recommendations for each City department and requesting public
input following each departmental review.
The budget will be prepared in such a way as to maximize its understanding by
residents. Copies of the recommended budget documents will be accessed via the
following:
a. The City Clerk's office, located in City Hall (printed)
b. The government documents section at the Carnegie Stout Public Library
(printed)
c. On the City's website at www.cityofdubuque.org (digital)
Opportunities are provided for resident input prior to formulation of the City Manager's
recommended budget and will be provided again prior to final Council adoption, both at
City Council budget special meetings and at the required budget public hearing.
Timeline of Public Input Opportunities
The Budget Office conducted community outreach with Balancing Act using print and
digital marketing and presentations.
• October: Point Neighborhood Association.
FY 2022 Budget & Fiscal Policy Guidelines
Page 1
• November: The City Manager hosted an evening virtual public budget input
meeting. The Budget Office conducted a virtual community outreach session
using GoToMeeting.
• December: City staff conducted two virtual community outreach sessions using
GoToMeeting and Facebook Live streaming.
A total of 71 community members attended the virtual budget presentations.
There have been 140 page views of the Balancing Act budget simulator tool and
3 budgets have been submitted by the public as of February 1, 2021. The input
provided will be analyzed by City staff and evaluated by the City Manager for
inclusion in the Fiscal Year 2022 budget recommendation as deemed
appropriate.
Open Budget
"�' - - dollar-andcents.c` -r�u'- - - - �g
During Fiscal Year 2016, the City launched a web based open data platform. 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 residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
URL:http://bit.ly/fy22budgetsim
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high-priority
budget input questions, and leave comments.
Taxpayer Receipt
U ttp://bit.ly/taxpayerreceipt
During Fiscal Year 2019, the City launched an online application which allows users to
generate an estimate of how their tax dollars are spent. The tool uses data inputted by
the user such as income, age, taxable value of home, and percentage of goods
purchased within City limits. The resulting customized receipt demonstrates an estimate
of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other
city services. This tool is in support of the City Council goal of a financially responsible
and high-performance organization and addresses a Council-identified outcome of
providing opportunities for residents to engage in City governance and enhance
transparency of City decision-making.
FY 2022 Budget & Fiscal Policy Guidelines
Page 2
B. SERVICE OBJECTIVES AND SERVICE LEVELS
The budget will identify specific objectives to be accomplished during the budget year,
July 1 through June 30, for each activity of the City government. The objectives serve
as a commitment to the citizens from the City Council and City organization and
identify the level of service which the citizen can anticipate.
C. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED
Two types of budget documents will be prepared for public dissemination. The
recommended City operating budget for Fiscal Year 2022 will consist of a
Recommended City Council Policy Budget that is a collection of information that has
been prepared for department hearings and a Residents Guide to the Recommended
FY 2022 Budget. These documents will be available in late-February.
1. Recommended City Council Policy Budget The purpose of this document is to
focus attention on policy decisions involving what services the City government
will provide, who will pay for them, and the implications of such decisions. The
document will emphasize objectives, accomplishments and associated costs for
the budget being recommended by the City Manager.
The Recommended City Council Policy Budget will include the following
information for each department:
� Highlights of prior year's accomplishments and Future Year's Initiatives
� A financial summary
� A summary of improvement packages requested and recommended
� significant line items
� Capital improvement projects in the current year and those recommended
over the next five years
� Organizational chart for larger departments and major goals, objectives
and performance measures for each cost center within that department
� Line item expense and revenue financial summaries.
2. The Residents Guide This section of the Recommended FY 2022 Budget will
be a supplementary composite of tables, financial summaries and explanations. It
will include the operating and capital budget transmittal messages and the
adopted City Council Budget Policy Guidelines. Through graphs, charts and
tables it presents financial summaries which provide an overview of the total
operating and capital budgets.
FY 2022 Budget & Fiscal Policy Guidelines
Page 3
D. ADOPT A BALANCED BUDGET
The City will adopt a balanced budget in which expenditures will not be allowed to
exceed reasonable estimated resources. The City will pay for all current expenditures
with current revenues
E. BALANCE BETWEEN SERVICES AND TAX BURDEN
The budget should reflect a balance between services provided and the burden of
paying taxes and/or fees for those services. It is not possible or desirable for the City
to provide all the services requested by individual residents. The City must consider
the ability of residents to pay for services in setting service levels and priorities.
F. MAINTENANCE EXISTING LEVEL OF SERVICE
To the extent possible with the financial resources available, the City should attempt to
maintain the existing level of services. As often as reasonably possible, each service
should be tested against the following questions:
(a) Is this service truly necessary?
(b) Should the City provide it?
(c)What level of service should be provided?
(d) Is there a better, less costly way to provide it?
(e) What is its priority compared to other services?
(f) What is the level of demand for the service?
(g) Should this service be supported by property tax, user fees, or a combination?
G. IMPROVE PRODUCTIVITY
Continue efforts to stretch the value of each tax dollar and maximize the level of City
services purchased with tax dollars through continual improvements in efficiency and
effectiveness. Developing innovative and imaginative approaches for old tasks,
reducing duplication of service effort, creative application of new technologies, and
more effective organizational arrangements are approaches to this challenge.
H. USE OF VOLUNTEERS
DISC SION
To respect residents who must pay taxes, the City must seek to expand resources and
supplement service-delivery capacity by continuing to increase direct resident
involvement with service delivery. Residents are encouraged to assume tasks
FY 2022 Budget & Fiscal Policy Guidelines
Page 4
previously performed or provided by City government. This may require the City to
change and expand the approach to service delivery by providing organizational skills
and training and coordinating staff, office space, meeting space, equipment, supplies
and materials rather than directly providing more expensive full-time City staff. Activities
in which residents can continue to take an active role include: Library, Recreation,
Parks, Five Flags Center, and Police.
Future maintenance of City service levels may depend partially or largely on volunteer
resident staffs. Efforts shall continue to identify and implement areas of City
government where (a) volunteers can be utilized to supplement City employees to
maintain service levels (i.e., Library, Recreation, Parks, Police) or (b) service delivery
can be adopted by to non-government groups and sponsors -- usually with some
corresponding financial support.
I. RESTRICTIONS ON INITIATING NEW SERVICE
New service shall only be considered: (a) when additional revenue or offsetting
reduction in expenditures is proposed; or (b) when mandated by state or federal law.
J. SALARY INCREASES OVER THE AMOUNT BUDGETED SHALL
BE FINANCED FROM BUDGET REDUCTIONS IN THE
DEPARTMENT(S) OF THE BENEFITING EMPLOYEES
DISCUSG�nN
The recommended budget includes salary amounts for all City employees. However,
experience shows that budgeted amounts are often exceeded by fact finder and/or
arbitrator awards. Such "neutrals" do not consider the overall financial capabilities and
needs of the community and the fact that the budget is carefully balanced and fragile.
Such awards have caused overdrawn budgets, deferral of necessary budgeted
expenditures, expenditure of working balances and reserves, and have generally
reduced the financial condition or health of the City government. To protect the financial
integrity of the City government, it is recommended the cost of any salary adjustment
over the amount financed in the budget is paid for by reductions in the budget of the
department(s) of the benefiting employees.
FY 2022 Budget & Fiscal Policy Guidelines
Page 5
The City has five collective bargaining agreements. The current contracts expire as
follows:
. . . . .
Teamsters Local Union No. 120 June 30, 2022
Teamsters Local Union No. 120 Bus Operators June 30, 2022
Dubuque Professional Firefighters Association June 30, 2023
Dubuque Police Protective Association June 30, 2024
International Union of Operating Engineers June 30, 2024
Salary increases over the amount budgeted for salaries shall be financed from
operating budget reductions in the department(s) of the benefiting employees.
FY 2022 Budget & Fiscal Policy Guidelines
Page 6
K. THE AFFORDABLE CARE ACT
_. ..��� �.��
The Affordable Care Act is a health care law that aims to improve the current health
care system by increasing access to health coverage for Americans and introducing
new protections for people who have health insurance. The Affordable Care Act (ACA)
was signed into law on March 23, 2010. Under the ACA, employers with more than 50
full-time equivalent employees must provide affordable "minimum essential coverage"
to full-time equivalent employees. The definition of a full-time equivalent employee
under the Affordable Care Act is any employee that works 30 hours per week or more
on average over a twelve-month period (1,660 hours or more). There is a twelve-month
monitoring period for part-time employees. If a part-time employee meets or exceeds
30 hours per week on average during that twelve-month period, the City must provide
health insurance. On July 2, 2013, the Treasury Department announced that it
postponed the employer shared responsibility mandate for one year. Based on the
initial requirements of the Affordable Health Care Act, the Fiscal Year 2014 budget
provided for insurance coverage effective February 1, 2014 for several part-time
employees. In addition, the Fiscal Year 2014 budget provided for making several part-
time positions full-time on June 1, 2014. Due to the delay of the employer shared
responsibility mandate for the Affordable Health Care Act, the City delayed providing
insurance coverage for eligible part-time employees and delayed making eligible part-
time positions full-time until January 1, 2015.The Standard Measurement Period was
delayed from January 1, 2013 through December 31, 2013 to December 1, 2013
through November 30, 2014 with the first provision of health insurance date being
January 1, 2015.
The impact of the Affordable Care Act on the City of Dubuque included changing nine
part-time positions to full-time (Bus Operators (4), Police Clerk Typist (1), Building
Services Custodians (3), and Finance Cashier (1) in Fiscal Year 2016. In addition, nine
part-time positions were offered health insurance benefits due to working more
than1,560 hours (Bus Operators (4), Golf Professional, Assistant Golf Professional,
Golf Maintenance Worker, Parks Maintenance Worker , and Water Meter Service
Worker). The number of these part-time positions with health insurance benefits has
been reduced as employees in these positions accept other positions or leave
employment with the City of Dubuque. As of February 1, 2021, there are two part-time
positions with health insurance benefits that remain which include the Golf Professional
and a Parks Maintenance Worker.
FY 2022 Budget & Fiscal Policy Guidelines
Page 7
L. HIRING FREEZE
A hiring freeze was implemented during Fiscal Year 2020 due to the pandemic. The
positions frozen include: Facilities Management Full-time Custodian, City Manager's
Office Part-Time Scanning Intern, City Manager's Office Full-Time Neighborhood
Specialist, City Manager's Office Full-Time ICMA Fellow, Economic Development
Seasonal Intern, Engineering Full-Time Camera Systems Technician, Fire Full-Time
Firefighter for Expansion, Library Full-Time Youth Services, Multicultural Family Center
Part-Time Receptionist, Parks Full-Time Maintenance Worker, Planning Seasonal
Intern, Police Part-Time Records Clerk, Police Full-Time School Resource Officer,
Public Works Full-Time Traffic Signal Tech II, and Recreation Full-Time Facility
Supervisor,
I
M. BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES
The provision of City services in the most economical and effective manner requires a
balance between capital (with emphasis upon replacement of equipment and capital
projects involving maintenance and reconstruction) and operating expenditures. This
balance should be reflected in the budget each year.
N. USER CHARGES
User charges or fees represent a significant portion of the income generated to support
the operating budget. It is the policy that user charges or fees be established when
possible so those who benefit from a service or activity also help pay for it. Municipal
utility funds have been established for certain activities, which are intended to be self-
supporting Enterprise Funds. Examples of utility funds operating as Enterprise Funds
include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection
Fund, and Parking Fund. In other cases, a user charge is established after the City
Council determines the extent to which an activity must be self-supporting. Examples of
this arrangement are fees for swimming, golf, recreation programs, and certain
inspection programs such as rental inspections and building permits.
The Stormwater User Fund is fully funded by stormwater use fees. The General Fund
will continue to provide funding for the stormwater fee subsidies which provide a 50%
subsidy for the stormwater fee charged to property tax exempt properties and low-to-
moderate income residents and a 75% subsidy for residential farms.
FY 2022 Budget & Fiscal Policy Guidelines
Page 8
User fees and charges should be established where possible so that those who
utilize or directly benefit from a service, activity or facility also help pay for it.
User fees and charges for each utility enterprise fund (Water User Fund, Sewer User
Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be
set at a level that fully supports the total direct and indirect cost of the activity,
including the cost of annual depreciation of capital assets, the administrative
overhead to support the system and financing for future capital improvement projects.
The following chart shows activities with user charges and the percentage the activity
is self-supporting:
. . . .
Activity FY 2019 Actual FY 2020 Actual FY 2021 Adopted FY 2022 Rec'd
Adult Athletics 72.8% 59.5% 70.1°/a 71.4%
McAleece Concessions 155.5% 244.9% 148.4% 147.1%
Youth Sports 18.3% 6.1% 13.6% 13.4%
Therapeutic&After School 11.8% 34.2% 32.3% 31.4%
Recreation Classes 95.2% 46.5% 56.5% 56.4%
Swimming 57.9% 42.9% 61.0% 61.0%
Golf 96.3% 98.7% 105.5% 106.0%
Port of Dubuque Marina 70.5% 69.4% 67.9°/o 64.0%
Park Division 13.4% 17.1% 17.2°/o 15.2%
Library 3.5% 2.6% 1.6% 1.1%
Airport 91.6% 92.4% 91.7% 89.1%
Building Inspections 102.1% 118.8% 142.9% 103.1%
Planning Services 44.6% 44.1% 52.0% 45.1%
Health Food/Environmental
Inspections 69.2% 83.2% 74.9% 75.0%
Animal Control 64.0% 63.1% 71.7% 69.1%
Housing - General Inspection 70.6% 68.5% 91.4% 88.7%
Federal Building Maintenance 85.7% 77.3% 83.0°/o 81.6%
FY 2022 Budget & Fiscal Policy Guidelines
Page 9
O. ADMINISTRATIVE OVERHEAD RECHARGES
DISCUSSION
While the Enterprise Funds have contributed to administrative overhead, the majority
has been provided by the General Fund. This is not reasonable and unduly impacts
property taxes, which causes a subsidy to the Enterprise Funds. Prior to FY 2013, the
administrative overhead was charged by computing the operating expense budget for
each enterprise fund and dividing the result by the total City-wide operating expense
budget which resulted in the following percentages of administrative overhead charged
to each enterprise fund: Water 5.32%; Sanitary Sewer 4.84%; Stormwater 0.55%; Solid
Waste 2.83%; Parking 1.71%; and Landfill 2.71%. The adopted Fiscal Year 2013 budget
changed the administrative overhead to be more evenly split between the general fund
and enterprise funds and is phased in over many years.
The Fiscal Year 2018 administrative overhead formula was recommended modified. The
modification removed Neighborhood Development, Economic Development and
Workforce Development from all recharges to utility funds. In addition, the Landfill
calculation is modified to remove GIS and Planning.
In Fiscal Year 2022, the general fund is recommended to support $3,878,400 in
administrative overhead using the recharge method adopted in Fiscal Year 2013 and
revised in Fiscal Year 2018.
Beginning in FY 2013, additional overhead recharges to the utility funds is being
phased in over several years. Engineering administrative and project management
expenses that are not recharged to capital projects will be split evenly between the
Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all
other administrative departments such as Planning, City Clerk, Legal Services and
City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse
Collection and General Funds, with overhead costs being shared by the Landfill and
Parking. This will be fully implemented over time.
Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development
and Workforce Development expenses will not be recharged to utility funds. In
addition, the Landfill will not be recharged GIS and Planning expenses.
When the overhead recharges are fully implemented, the split of the cost of
administrative overhead excluding Engineering will be as follows:
FY 2022 Budget & Fiscal Policy Guidelines
Page 10
Administrati�e �verhead �plit Engineering Administration 8�
(Hot including Engineering� �rGJ��t�{IMp���T1�Mt
■4�+ater ■Gen eral
■.Sevrer Fund
Stcrrrwater � 1•^,��itv•
--- � ■Re=u=e _�..,v
c�
■Farking
■Land=ill � � ■�tcrrrwater
� � �
■General Fund
�
P. OUTSIDE FUNDING
DISCUSS JN
The purpose of this guideline is to establish the policy that the City should aggressively
pursue outside funding to assist in financing its operating and capital budgets.
However, the long-term commitments required for such funding must be carefully
evaluated before any agreements are made. Commitments to assume an ongoing
increased level of service or level of funding once the outside funding ends must be
minimized.
To minimize the property tax burden, the City of Dubuque will make every effort to
obtain federal, state and private funding to assist in financing its operating and capital
budgets. However, commitments to guarantee a level of service or level of funding
after the outside funding ends shall be minimized. Also, any matching funds required
for capital grants will be identified.
Q. GENERAL FUND OPERATING RESERVE (WORKING BALANCE)
DISCUSSION
An operating reserve or working balance is an amount of cash, which must be carried
into a fiscal year to pay operating costs until tax money, or other anticipated revenue
comes in. Without a working balance, there would not be sufficient cash in the fund to
meet its obligations and money would have to be borrowed. Working balances are not
available for funding a budget; they are required for cash flow (i.e., to be able to pay bills
before taxes are collected).
FY 2022 Budget & Fiscal Policy Guidelines
Page 11
Q. GENERAL FUND OPERATING RESERVE (WORKING BALANCE)
(continued)
Moody's Investor Service recommends a factor of 20 percent for "AA" rated cities. In
May 2015, Moody's Investors Service downgraded Dubuque's general obligation bond
rating from Aa2 to Aa3 and removed the negative 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 that the City's general fund balance/reserve
declined.
. -
. . . . - . . .
.
FY 2013 21.08%
FY 2014 14.87% Decrease due to planned capital expenditures of$4.1 m in FY14
FY 2015 14.87% Unchanged
Increase due to capital projects not expended before the end of the FY
FY 2016 17.52% and increase in general fund revenue
Increase due to capital projects not expended before the end of the FY
FY 2017 20.09% and additional contributions to general fund reserve
Increase due to capital projects not expended before the end of the FY
FY 2018 23.81% and additional contributions to general fund reserve
FY 2019 29.06% Increase due to capital projects not expended before the end of the FY.
Increase due to freezing vacant positions and most capital projects
FY 2020 31.24% due to the pandemic.
The City of Dubuque has historically adopted a general fund reserve policy as part of
the Fiscal and Budget Policy Guidelines which are adopted each year as part of the
budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve
Policy. Per the policy for the General Fund, the City will maintain a minimum fund
balance of at least 10 percent of the sum of (a) annual operating expenditures not
including interFund transfers in the General Fund less (b) the amounts levied in the Trust
and Agency fund and the Tort Liability Fund ("Net General Fund Operating Cost"). The
City may increase the minimum fund balance by a portion of any operating surplus
above the carryover balance of$200,000 that remains in the General Fund at the close
of each fiscal year. The City continued to add to the General Fund minimum balance
when additional funds were available until 20 percent of Net General Fund Operating
Cost was reached in Fiscal Year 2017.
After all planned expenditures in FY 2021, the City of Dubuque will have a general fund
reserve of 24.83% of general fund expenses as computed by the methodology adopted
in the City's general fund reserve policy on a cash basis or 25.21% percent of general
fund revenues as computed by the accrual basis methodology used by Moody's
Investors Service. The general fund reserve cash balance is projected to be
$17,166,567 on June 30, 2021 as compared to the general fund reserve balance on an
accrual basis of$17,903,632 as computed by Moody's Investors Service.The general
FY 2022 Budget & Fiscal Policy Guidelines
Page 12
fund reserve balance on an accrual basis exceeds 22% in FY 2021, which is the margin
of error used to ensure the City always has a general fund reserve of at least 20% as
computed by Moody's Investors Service.
The guideline of the City of Dubuque is to maintain a General Fund working balance
or operating reserve of 20% (22% to maintain a margin of error of 2%) in FY 2022
and beyond. In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2022. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has
sustained a greater than 20°/a reserve.
General Fund Reserve Projections:
. - . . .
. - .
.
. . .
FY2017 $ 600,000 $ 14,172,661 20.09 %
FY2018 $ 1,700,000 $ 16,460,491 23.81 %
FY2019 $ 1,050,000 $ 20,945,090 29.06 %
FY2020 $ - $ 21,744,160 31.24 %
FY2021 $ - $ 17,903,632 25.21 %
FY2022 $ - $ 17,903,632 24.72 %
FY2023 $ - $ 17,903,632 24.24 %
FY2024 $ - $ 17,903,632 23.76 %
FY2025 $ - $ 17,903,632 23.29 %
FY2026 $ - $ 17,903,632 22.84 %
* Capital projects and large equipment purchases that are not completed in the year
budgeted will temporarily increase the amount of fund balance remaining at the end of
the fiscal year. After resources are allocated to the next fiscal year to complete
unfinished capital projects and equipment purchases, any amount of general fund
reserve balance over 22% creates resources for additional capital projects or
other mid-year expenses.
R. USE OF UNANTICIPATED, UNOBLIGATED, NONRECURRING
INCOME
DISCUS� ON
Occasionally, the City receives income that was not anticipated and was not budgeted.
Often, this money is non-recurring and reflects a one-time occurrence which generated
the unanticipated increase in income.
Non-recurring income generally will not be spent on recurring expenses. This would
result in a funding shortfall in the following budget year before even starting budget
FY 2022 Budget & Fiscal Policy Guidelines
Page 13
preparation. However, eligible non-recurring expenditures would include capital
improvements and equipment purchases.
Nonrecurring unobligated income shall generally only be spent for nonrecurring
expenses. Capital improvement projects and major equipment purchases tend to be
nonrecurring expenditures.
S. USE OF "UNENCUMBERED FUND BALANCES"
DISCUSSION
Historically, 100% of a budget is not spent by the end of the fiscal year and a small
unencumbered balance remains on June 30th. In addition, income sometimes exceeds
revenue estimates or there are cost savings resulting in some unanticipated balances at
the end of the year. These amounts of unobligated, year-end balances are "carried
over" into the new fiscal year to help finance it.
The FY 2021 General Fund budget, which went into effect July 1, 2020, anticipated a
"carryover balance" of$200,000 or approximately 2 percent of the General Fund. For
multi-year budget planning purposes, these guidelines assume a carryover balance of
$200,000 in FY 2022 through FY 2026.
Carryover General Fund balance shall generally be used to help finance the next
fiscal year budget and reduce the demand for increased taxation. The available
carryover General Fund balance shall be anticipated not to exceed $200,000 for FY
2022 and beyond through the budget planning period. Any amount over that shall
usually be programmed in the next budget cycle as part of the capital improvement
budgeting process.
T. PROPERTY TAX DISCUSSION
I. ASSUMPTIONS - RESOURCES
1. Local, Federal and State Resources
a. Cash Balance. Unencumbered funds or cash balances of $200,000 will be available
in FY 2022 and each succeeding year to support the operating budget.
b. Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the
General Fund for property tax relief in FY 2022. Sales tax receipts are projected to
increase 22.60% over FY 2021 budget $2,112,016 and 1.85% over FY 2021 actual of
$5,625,145 based on FY 2021 revised revenue estimate which includes a reconciliation
payment from the State of lowa of$1,610,103 received in November 2020, increase
FY 2022 Budget & Fiscal Policy Guidelines
Page 14
1.85% percent to calculate the FY 2022 budget, and then increase at an annual rate of
1.85% percent per year beginning in FY 2023. The estimates received from the State of
lowa show a 0.68% increase in the first payment estimated for FY 2022 as compared to
the first payment budgeted for FY 2021. The following chart shows the past four years
of actual sales tax funds and projected FY 2022 for the General Fund:
. � . � � � i � �
PY Q4 $ 748,108 $ 366,087 $ 355,027 $ 380,549 $ 419,551
Quarter 1 $ 1,080,294 $ 1,066,816 $ 1,124,105 $ 1,252,896 $ 1,390,714
Quarter 2 $ 1,109,978 $ 1,098,596 $ 1,149,881 $ 1,274,904 $ 1,415,144
Quarter 3 $ 939,923 $ 1,031,606 $ 971,871 $ 1,072,643 $ 1,190,634
Quarter4 $ 732,174 $ 700,312 $ 761,097 $ 839,102 $ 931,403
Reconciliation $ 77,018 $ 217,699 $ 219,332 $ 805,052 $ 381,500
Total $ 4,687,495 $ 4,481,116 $ 4,581,313 $ 5,625,146 $ 5,728,946
% Change +5.17% -4.61% +2.24% +22.78% +1.85%
c. Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 2.00%
$47,081 over FY 2021 budget and 37.82% over FY 2021 re-estimated receipts of
$1,613,279, and then increase at an annual rate of 2.00% per year.
d. FTA Revenue. Federal Transportation Administration (FTA) transit operating
assistance is unchanged from $1,253,787 in FY 2021. The FY 2022 budget is based on
the revised FY 2021 budget received from the FTA. Federal operating assistance is
based on a comparison of larger cities. Previously the allocation was based on
population and population density.
e. Ambulance Revenue. Ambulance Ground Emergency Medical Transport Payments
increased from $216,837 in FY 2021 to $947,176 in FY 2022. GEMT is a federally-
funded supplement to state Medicaid payments to EMS providers transporting Medicaid
patients which began in FY 2020. The FY 2021 Adopted budget was based on
approximately 800 GEMT eligible calls and a Dubuque Fire Department specific rate of
$275.95 per call. After the Fiscal Year 2021 budget was adopted, the Fire Department
filed cost reports for 2018, 2019, and 2020 for uncompensated costs related to Medicaid
calls. An exception to the policy for previously filed cost reports was approved during FY
2021 and the revised FY 2021 budget for GEMT revenue is $947,176 based on 800
GEMT eligible calls and a state average reimbursement rate of$1,183.97. For FY 2022,
the reimbursement rate is based on the state average reimbursement rate of$1,184 per
call and is based on 800 eligible calls.
f. Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth
per year over budgeted FY 2021.
FY 2022 Budget & Fiscal Policy Guidelines
Page 15
g. Building Fee Revenue. Building fees (Building Permits, Electrical Permits,
Mechanical Permits and Plumbing Permits) are anticipated to decrease $89,990 from
$808,886 in FY 2021 to $718,896 in FY 2022.
h. DRA Revenue.
Gaming revenues generated from lease payments from the Dubuque Racing
Association (DRA) are estimated to increase $43,621 from $5,185,737 in FY 2021 to
$5,229,358 in FY 2022 based on revised projections from the DRA. This follows a
$198,633 increase from budget in FY 2021 and a $85,928 increase from budget in FY
2020.
The following is a ten-year history of DRA lease payments to the City of Dubuque:
� . .
FY 2022 Projected $5,229,358 $103,450 2%
FY2021 Revised $5,125,908 -$59,829 -1%
FY2021 Budget $5,185,737 $1,223,741 31%
FY2020Actual $3,961,996 -$1,187,192 -23%
FY 2019 Actual $5,149,188 $293,177 6%
FY 2018 Actual $4,856,011 $18,879 0%
FY 2017 Actual $4,837,132 -$195,083 -4%
FY 2016 Actual $5,032,215 -$155,297 -3%
FY 2015 Actual $5,187,512 -$158,104 -3%
FY 2014 Actual $5,345,616 -$655,577 -11%
FY 2013 Actual $6,001,193 $3,305 0%
FY 2012 Actual $5,997,888 -$345,242 -5%
FY 2011 Actual $6,343,130 -$477,153 -7%
The Diamond Jo payment related to the revised parking agreement decreased from
$584,325 in FY 2021 to $570,596 in 2022 based on estimated Consumer Price Index
adjustment.
i. DRA Gaming.
The split of gaming revenues from taxes and the DRA lease (not distributions) in FY
2022 remains at a split of 100% operating and 0% capital. When practical in future
years, additional revenues will be moved to the capital budget from the operating
budget.
FY 2022 Budget & Fiscal Policy Guidelines
Page 16
The following shows the annual split of gaming taxes and rents between operating and
capital budgets from FY2017— FY2022:
Split of Gaming Tax + Revenue Between Operating & Capital Budgets
FY 2017 99% %
FY 2018 97% 3%
FY 2019 96% �
FY 2020 95%
FY 2021 100% �
FY 2022 100% 0%
—% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110°/a
Operating � Capital
j. Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2022) and the
Diamond Jo parking privileges ($570,596 in FY 2022) have not been included in the split
with gaming revenues. This revenue is allocated to the operating budget.
2. Property Taxes
k. Residential Rollback. The residential rollback factor will increase from 55.0743% in
2021 to 56.4094% or a 2.42% increase in FY 2022. The rollback has been estimated to
remain the same from Fiscal Years 2023 through 2026.
The percent of growth from revaluation is to be the same for agricultural and residential
property; therefore, if one of these classes has less than 3% growth for a year, the other
class is limited to the same percent of growth. A balance is maintained between the two
classes by ensuring that they increase from revaluation at the same rate. In FY 2022,
agricultural property had more growth than residential property which caused the
rollback factor to increase.
FY 2022 Budget & Fiscal Policy Guidelines
Page 17
The increase in the residential rollback factor increases the value that each residence is
taxed on. This increased taxable value for the average homeowner ($80,666 taxable
value in FY 2021 and $82,621 taxable value in 2022) results in more taxes to be paid
per $1,000 of assessed value. In an effort to keep property taxes low to the average
homeowner, the City calculates the property tax impact to the average residential
property based on the residential rollback factor and property tax rate. In a year that the
residential rollback factor increases, the City recommends a lower property tax rate than
what would be recommended had the rollback factor remained the same.
The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to
56.4094% percent in Fiscal Year 2022. The rollback percent had steadily decreased
since FY 1987, which has resulted in less taxable value and an increase in the City's tax
rate. However, that trend began reversing in FY 2009 when the rollback reached a low
of 44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2021, the
City's tax rate would have been $7.27 per $1,000 of assessed value instead of$10.14 in
FY 2021.
I. State Equalization Order/Property Tax Reform. There was not an equalization
order for commercial, industrial or multi-residential property in Fiscal Year 2022. The
lowa Department of Revenue is responsible for "equalizing" assessments every two
years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide
basis.
Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed
value; however due to legislative changes in FY 2013, a 95% rollback factor was
applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond.
The State of lowa backfilled the loss in property tax revenue from the rollback 100% in
FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018
and beyond. The FY 2022 State backfill for property tax loss is estimated to be
$926,782.
Elements of the property tax reform passed by the lowa Legislature in 2013 have
created a tremendous amount of uncertainty in the 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 legislators have
been quoted in the media as casting doubt on the reimbursements continuing.
Beginning in FY 2024, it is assumed that the State will eliminate the backfill over a
five-year period.
FY 2022 Budget & Fiscal Policy Guidelines
Page 18
The projected reduction of State backfill revenue to the general fund is as follows:
. .
2024 -$185,356
2025 -$185,356
2026 -$185,356
2027 -$185,357
2028 -$185,357
Total -$926,782
FY 2015 was the first year that commercial, industrial and railroad properties were
eligible for a Business Property Tax Credit. The Business Property Tax Credit will be
deducted from the property taxes owed and the credit is funded by the State of lowa.
Eligible businesses must file an application with the Assessor's office to receive the
credit with a deadline of January 15, 2021 for applications to be considered for FY 2022.
The calculation of the credit is dependent on the number of applications that were
received and approved statewide versus the amount that was appropriated for the fiscal
year, the levy rates for each parcel, and the difference in the commercial/industrial
rollback compared to residential rollback. In FY 2015, the lowa Legislature appropriated
$50 million for FY15; $100 million for FY16; and $125 million for FY17 and thereafter.
The estimated amount of value that will be used to compute the credit in FY 2015 is
$33,000, FY 2016 is $183,220, FY 2017 is $255,857, FY 2018 is $266,340, FY 2019 is
$231,603,FY 2020 is $251,788, and FY 2021 is $219,886.
The basic formula is the value multiplied by the difference in rollbacks of commercial
and residential property then divided by one thousand and then multiplied by the
corresponding levy rate:
_ (VALUE X (Commercial Rollback - Residential Rollback) = 1,000)) X Levy Rate
The average commercial and industrial properties ($432,475 Commercial / $599,500
Industrial) will receive a Business Property Tax Credit from the State of lowa for the City
share of their property taxes of $148 in FY 2015, $693 in FY 2016, $982 in FY 2017,
$959 in FY 2018, $843 in FY 2019, $861 in FY 2020, and $779 in FY 2021. FY 2022 is
project to be $742.
Beginning in FY 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 3 or more
units. Rental properties of 2 units were already classified as residential property.
FY 2022 Budget & Fiscal Policy Guidelines
Page 19
m. Multi-Residential Property Class/Eliminated State Shared Revenue.
The State of lowa will not backfill property tax loss from the rollback on multi-residential
property. The rollback will occur as follows:
- . . . � , � . .
FY 2017 86.25% $331,239
FY 2018 82.50% $472,127
FY 2019 78.75% $576,503
FY 2020 75.00% $691,640
FY 2021 71.25% $952,888
FY 2022 67.50% $1,371,435
FY 2023 63.75% $1,293,125
FY 2024 56.41% $1,458,182
Total $7,147,139
*56.41% = Current residential rollback
This annual loss in tax revenue of$1,371,435 in FY 2022 and $1,458,182 from
multi-residential property when fully implemented in FY 2024 will not be backfilled
by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City will lose
$7,147,139 in total, meaning landlords will have paid that much less in property taxes.
The state did not require landlords to charge lower rents or to make additional
investment in their property.
In addition, the State of lowa eliminated the:
a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000)
b. Personal Property Tax Replacement in FY 2004 (-$350,000)
c. Municipal Assistance in FY 2004 (-$300,000)
d. Liquor Sales Revenue in FY 2004 (-$250,000)
e. Bank Franchise Tax in FY 2005 (-$145,000)
The combination of the decreased residential rollback, State funding cuts and increased
expenses has forced the City's tax rate to increase since 1987 when the residents
passed a referendum to establish a one percent local option sales tax with 50% of the
revenue going to property tax relief.
n. Taxable Value. FY 2022 will reflect the following impacts of taxable values of various
property types:
FY 2022 Budget & Fiscal Policy Guidelines
Page 20
. . - . - . - . .
Residential +3.54 %
Commercial +1.65 %
Industrial +0.72 %
Multi-Residential +12.30 %
Overall +3.48 %
�`Overall taxable value increased 3.48% percent after deducting Tax Increment
Financing values
Assessed valuations were increased 2 percent per year beyond FY 2022.
o. Riverfront Property Lease Revenue. Riverfront property lease revenue is projected
to increase by $28,237 in FY 2022 due to the estimated consumer price index increase.
3. Fees, Tax Rates & Services
p. Franchise Fees. Natural Gas franchise fees have been projected to increase zero
percent over FY 2020 actual of$907,201. Also, Electric franchise fees have been
projected to increase 5 percent over 2021 budget of$4,178,875. The franchise fee
revenues are projected to increase at an annual rate of 4 percent per year from FY 2023
through FY 2026.
The City provides franchise fee rebates to gas and electric customers who are exempt
from State of lowa sales tax. Franchise fee rebates are provided at the same exemption
percent as the State of lowa sales tax exemption indicated on the individual gas and or
electric bill. To receive a franchise fee rebate, a rebate request form must be completed
by the customer, the gas and/or electric bill must be attached, and requests for rebates
for franchise fees must be submitted during the fiscal year in which the franchise fees
were paid except for June. Natural Gas franchise fee rebates have been projected to
decrease 17% under 2021 budget of$49,045 and Electric franchise fee rebates have
been projected to increase 18% over 2021 budget of$590,850.
The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal
maximum, on June 1, 2015.
q. Property Tax Rate. For purposes of budget projections only, it is assumed that City
property taxes will continue to increase at a rate necessary to meet additional
requirements over resources beyond FY 2022.
r. Police & Fire Protection. FY 2022 reflects the twelfth year that payment in lieu of
taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection.
In FY 2022, the Sanitary Sewer fund is charged 0.43% of building value and the Water
fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire
Protection. This revenue is reflected in the General Fund and is used for general
property tax relief.
FY 2022 Budget & Fiscal Policy Guidelines
Page 21
II. ASSUMPTIONS — REQUIREMENTS
a. Pension Systems.
• The Municipal Fire and Police Retirement System of lowa (MFPRSI) Board of
Trustees City contribution for Police and Fire retirement increased from 25.31%
percent in FY 2021 to 26.18% percent in FY 2022 (general fund cost of$133,704
for Police and $59,244 for Fire or a total of$192,948).
• The lowa Public Employee Retirement System (IPERS) City contribution is
unchanged from the FY 2021 contribution rate of 9.44% (no general fund impact).
The IPERS employee contribution is unchanged from the FY 2021 contribution
rate of 6.29% (which does not affect the City's portion of the budget). The IPERS
rate is anticipated to increase 1 percent each succeeding year.
b. Collective Bargaining. The already approved collective bargaining agreements for
Teamsters Local Union 120, Dubuque Professional Firefighters Association, and
International Union of Operating Engineers in FY 2022 include a 3.00% employee wage
increase. The already approved collective bargaining agreement for Teamsters Local
Union 120 Bus Operators include a 3.25% employee wage increase.Non-represented
employees include a 3.00% wage increase. Total cost of the wage increase is
$1,161,505 to the General Fund.
c. Health Insurance. The City portion of health insurance expense is projected to
increase from $1,025 per month per contract to $1,086 per month per contract (based
on 588 contracts) in FY 2022 (general fund cost of$297,186). 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. In FY 2017, The City went out for bid for third party
administrator and the estimated savings has resulted from the new contract and actual
claims paid with there being actual reductions in cost in FY 2018 (19.42%) and FY 2019
(0.35%). In addition, firefighters began paying an increased employee health care
premium sharing from 10% to 15% and there was a 7% increase in the premium on July
1, 2018. During FY 2019, the City went out for bid for third party administrator for the
prescription drug plan there has been savings resulting from the bid award. Based on
FY 2021 actual experience, Fiscal Year 2022 is projected to have a 6% increase in
health insurance costs. Fiscal Year 2022 projections include additional prescription drug
plan savings of$219,256. Estimates for FY 2023 were increased 6%; FY 2024 were
increased 7%; FY 2025 were increased 8%; and FY 2026 were increased 8%.
d. Five-Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible
retirees with at least twenty years of continuous service in a full-time position or
employees who retired as a result of a disability and are eligible for pension payments
from the pension system can receive payment of their sick leave balance with a
maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick
leave payout expense budget in the General Fund in FY 2021 was $190,524 as
compared to FY 2022 of $219,532, based on qualifying employees officially giving
notice of retirement.
FY 2022 Budget & Fiscal Policy Guidelines
Page 22
e. 50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap
can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick
leave payout expense budget in the General Fund in FY 2021 was $102,607 as
compared to FY 2022 of $87,885, based on FY 2021 year-to-date expense.
f. Parental Leave. Effective March 8, 2019, employees may use Parental leave to take
paid time away from work for the birth or the adoption of a child under 18 years old.
Eligible employees receive their regular base pay (plus longevity) and benefits for
twelve weeks following the date of birth, adoption event or foster-to-adopt placement. If
both parents are eligible employees, each receive the leave benefit. There is no
parental leave expense budgeted in the General Fund based on departments covering
parental leave with existing employees and not incurring additional cost for temporary
help.
f. Supplies & Services. General operating supplies and services are estimated to
increase 2% over actual in FY 2020. A 2% increase is estimated in succeeding years.
g. Electricity. Electrical energy expense is estimated to have a 5.74% increase over FY
2020 actual expense, then 2% per year beyond.
h. Natural Gas. Natural gas expense is estimated to have no increase over FY 2020
actual expense, then 2% per year beyond.
i. Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will
continue at 50% of actual hotel/motel tax receipts.
j. Equipment & Machinery. Equipment costs for FY 2022 are estimated to decrease
5.27% under FY 2021 budget, then remain constant per year beyond.
k. Debt Service. Debt service is estimated based on the tax-supported, unabated
General Obligation bond sale for fire truck and franchise fee litigation settlement.
I. Unemployment. Unemployment expense in the General Fund increased from
$65,574 in FY 2021 to $83,819 in FY 2022 based on the average of the past two years.
m. Motor Vehicle Fuel. Motor vehicle fuel is estimated to decrease 2% the FY 2021
budget, then increase 2.0% per year beyond.
n. Motor Vehicle Maintenance. Motor vehicle maintenance is estimated to decrease
11% from the FY 2021 budget based on the replacement of Transit buses and other
vehicles, then increase 2.0% per year and beyond.
o. Public Transit. The decrease in property tax support for Transit from FY 2021 to FY
2022 is -$17,871, which reflects decrease in motor vehicle maintenance and diesel fuel
(-$101,086); decrease in snow removal (-$36,495); decrease in machinery and
FY 2022 Budget & Fiscal Policy Guidelines
Page 23
equipment (-$35,977); increase in motor vehicle maintenance outsourced ($58,815),
and decrease in private contributions related to the Night Rider Route ($84,280).
p. Public Transit (continued):
The following is a ten-year history of the Transit subsidy:
Transit Subsidy History:
• . .
2022 Pro'ection $1,617,570 1.09 %
2021 Bud et $1,635,441 4.94 %
2020 Actual $1,558,460 0.82 %
2019Actual $1,571,307 0.10 %
2018Actual $1,572,825 34.10 %
2017Actual $1,172,885 24.41 %
2016 Actual $942,752 13.20 %
2015Actual $1,086,080 30.33 %
2014 Actual $833,302 20.19 %
2013Actual $1,044,171 45.51 %
2012 Actual $717,611 33.48 %
2011 Actual $1,078,726 7.12 %
q. Shipping & Postage. Postage rates for FY 2022 are estimated to increase 8% over
FY 2020 actual expense and proposed cost increases by United States Postal Service.
A 2.0 percent increase is estimated in succeeding years.
r. Insurance. Insurance costs are estimated to change as follows:
• Workers Compensation is increasing 2% based on FY 2020 actual expense.
• General Liability is increasing 23% based on FY 2021 actual plus 23%.
• Damage claims is increasing 20% based on a five year average.
• Property insurance is increasing 16% based on FY 2021 actual plus 16%.
s. Housing. The Housing Choice Voucher subsidy payment from the General Fund is
estimated to decrease $160,172 in FY 2022 due to receiving the HUD grant to fund two
positions for the Family Self-Sufficiency Program in calendar year 2021. In FY 2011, the
City approved reducing the number of allowed Housing Choice Vouchers from 1,060 to
900 vouchers. This reduction in vouchers was estimated to reduce Section 8
administrative fees from HUD by $100,000 per year. However, in the transition, the
number of vouchers dropped to 803 vouchers. HUD has based the Section 8
administrative fees for FY 2022 on the higher number of vouchers held in FY 2021
which has increased the amount of revenue received by the Section 8 program in FY
2022. The City is in the process of increasing the Section 8 Housing Vouchers to 1,096.
t. Media Services Fund. The Media Services Fund no longer funds Police and Fire
public education, Information Services, Health Services, Building Services, Legal
FY 2022 Budget & Fiscal Policy Guidelines
Page 24
Services, and City Manager's Office due to reduced revenues from the cable franchise.
This is due to Mediacom's conversion from a Dubuque franchise to a state franchise in
October 2009 which changed the timing and calculation of the franchise fee payments.
Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and
Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is
expended, the City will be responsible for all City Media Service equipment replacement
costs. Other jurisdictions will need to plan accordingly.
u. Greater Dubuque Development Corporation. Greater Dubuque Development
Corporation support of$713,748 is budgeted to be paid mostly from Dubuque Industrial
Center Land Sales in FY 2022, with $25,000 for True North strategy paid from the
Greater powntown TIF. In FY 2023 and beyond Greater Dubuque Development
Corporation will be paid from the Greater powntown TIF and Dubuque Industrial Center
West land sales.
PROPEF TAX IMPACT
The recommended Fiscal Year 2022 property tax rate decreased 1.81% and will have
the following impact:
� � � , . .
Pro ert Tax Rate $10.04956 $10.14400 -0.89% -$0.09
Avera e Residential Pa ment $781.57 $769.08 1.62% $12.49
Avera e Commercial Pa ment $3,169.30 $3,169.30 0.00% $0.00
Avera e Industrial Pro ert $4,679.97 $4,694.17 -0.30% -$14.20
Average Multi-Residential $1,780.10 $1,896.65 -6.15% -$116.55
Property
Historical Impact on Tax Askings and Average Residential Property Tax Rates
The following is a historical City tax rate comparison. The average percent change in tax
rate from 1987-2022 is -0.98%. The average annual change over the last five years is
-2.08%.
The following pages show historical and projected property tax impacts.
FY 2022 Budget & Fiscal Policy Guidelines
Page 25
Historical Impacts on Tax Askings & Average Residential Property Tax Rates:
Historical Impact on Tax Askings & Average Residential Property Tax Rates
f % Change in Tax Rate City Tax Rate
6.00% $16.00
3.00% $14.00
—% $12.00
(3.00)% $10.00
(6.00)% $8.00
(9.00)°/a $6.00
(12.00)% $4.00
(15.00)% $2.00
(18.00)% $—
f� 00 6� O r N M � � CO I� a0 6� O � N M � � CO f� 00 � O � N M � � CO I� a0 O� O � N
Op 00 00 � � � 6� 6� O� � � � 6� O O O O O O O O O O � � r— � � � � � � � N N N
� 6� 0� 6� � � 6) � � � W � � 00000000000000000000000
� � � � � � � � � � � � � N N N N N N N N N N N N N N N N N N N N N N N
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
LL LL L.L LL LL L.L L.L LL L.L L.L LL L.L LL LL L.L LL LL L.L LL LL LL LL L.L LL LL L.L L.L LL LL L.L LL LL LL LL L.L LL
FY 2022 Budget & Fiscal Policy Guidelines
Page 26
Historical City tax rates and % change in tax rate:
.
FY 1987 14.5819
FY 1988 13.9500 -4.33%
FY 1989 11.8007 -15.41%
FY 1990 11.6891 -0.95%
FY 1991 12.2660 +4.94%
FY 1992 12.7741 +4.14%
FY 1993 12.4989 -2.15%
FY 1994 12.6059 +0.86%
FY 1995 11.7821 -6.54%
FY 1996 11.7821 0.00°/a
FY 1997 11.3815 -3.40%
FY 1998 11.4011 +0.17%
FY 1999 11.0734 -2.87%
FY 2000 10.7160 -3.23%
FY 2001 11.0671 +3.28%
FY 2002 10.7608 -2.77%
FY 2003 10.2120 -5.10%
FY 2004 10.2730 +0.60%
FY 2005 10.0720 -1.96%
FY 2006 9.6991 -3.70%
FY 2007 9.9803 +2.90%
FY 2008 10.3169 +3.37%
FY 2009 9.9690 -3.37%
FY 2010 9.8577 -1.12%
FY 2011 10.0274 +1.72%
FY 2012 10.4511 +4.23%
FY 2013 10.7848 +3.19%
FY 2014 11.0259 +2.24%
FY 2015 11.0259 0.00°/a
FY 2016 11.0259 0.00°/a
FY 2017 11.1674 +1.28%
FY 2018 10.8922 -2.46%
FY 2019 10.5884 -2.79%
FY 2020 10.3314 -2.43%
FY 2021 10.1440 -1.81%
FY 2022 10.0496 -0.93%
1987 -2022 Average Change -0.98%
2018-2022 Average Change -2.08%
FY 2022 Budget & Fiscal Policy Guidelines
Page 27
From Fiscal Year 1987 through Fiscal Year 2022, the average annual change in the
property tax rate is a decrease of 0.98°/o. Over the last five years, the average annual
change in the property tax rate is a decrease of 2.08%.
Projected Impacts on Tax Askings and Average Residential Property Tax Rates
Project Impacts on Tax Askings & Average Residential Property Tax Rates
12.00% $16.00
6.00% $12.00
—% $8.00
(6.00)% $4.00
(12.00)% $—
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
% Change in Tax Rate City Tax Rate
Projected City tax rates and % change in tax rate*:
.
FY 2022 10.0496 -0.93°/a
FY 2023 10.8220 7.69%
FY 2024 11.2619 4.06%
FY 2025 11.8419 5.15%
FY 2026 12.3401 4.21%
�Significantly impacted by the budget projection that the State of lowa will begin
eliminating the property tax backfill payments beginning in FY 2024.
FY 2022 Budget & Fiscal Policy Guidelines
Page 28
IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE
. �
- � i i .
. � . - . . -
FY 1989 "Cit " Pro ert Tax $453.99 -11.40% -$58.39
FY 1990 "Cit " Pro ert Tax $449.94 -0.89% -$4.04
FY 1991* "Cit " Pro ert Tax* $466.92 +3.77% $16.98
FY 1992 "Cit " Pro ert Tax $483.63 +3.58% $16.71
FY 1993* "Cit " Pro ert Tax* $508.73 +5.19% $25.10
FY 1994 "Cit " Pro ert Tax $510.40 +0.33% $1.51
FY 1995* "Cit " Pro ert Tax* $522.65 +2.40% $12.41
FY 1996 "Cit " Pro ert Tax $518.10 -0.87% -$4.54
FY 1997* "Cit " Pro ert Tax* $515.91 -0.42% -$2.19
FY 1998 "Cit " Pro ert Tax $512.25 -0.71% -$3.66
FY 1999 "Cit " Pro ert Tax* $512.25 0.00% $0.00
FY 2000 "Cit " Pro ert Tax $511.38 -0.17% -$0.87
FY 2001 "Cit " Pro ert Tax $511.38 0.00% $0.00
FY 2002 "Cit " Pro ert Tax $511.38 0.00% $0.00
FY 2003 "Cit " Pro ert Tax* $485.79 -5.00% -$25.58
FY 2004 "Cit " Pro ert Tax $485.79 0.00% $0.00
With Homestead Ad'. $493.26 +1.54% $7.46
FY 2005 "Cit " Pro ert Tax* $485.93 +0.03% $0.14
With Homestead Ad'.* $495.21 +0.40% $1.95
FY 2006 "Cit " Pro ert Tax 1 $494.27 +1.72% $8.34
With Homestead Ad'. 1 $504.62 +1.90% $9.41
FY 2007 "Cit " Pro ert Tax� 2 $485.79 -1.72% -$8.48
With Homestead Ad'.* $496.93 -1.52% -$7.69
FY 2008 "Cit " Pro ert Tax $496.93 0.00% $0.00
With Homestead Ad'. $510.45 +2.72% $13.52
FY 2009 "Cit " Pro ert Tax $524.53 +2.76% $14.08
With Homestead Ad'. $538.07 +5.41% $27.62
FY 2010 "Cit " Pro ert Tax $538.07 0.00% $0.00
With Homestead Ad'. $550.97 +2.40% $12.90
FY 2011 "Cit " Pro ert Tax $564.59 +2.47% $13.62
With Homestead Ad'. 3 $582.10 +5.65% $31.13
FY 2012 "Cit " Pro ert Tax $611.19 +5.00% $29.09
With Homestead Adj. (3) $629.78 +8.19% $47.68
FY 2013 "City" Property Tax $661.25 +5.00% $31.47
With Homestead Adj. (3) $672.76 +6.82% $42.98
FY 2014 "City" Property Tax $705.71 +4.90% $32.95
FY 2022 Budget & Fiscal Policy Guidelines
Page 29
� . -
� i � . .
� . - . . � . - . . -
FY 2015 "City" Property Tax $728.48 +3.23% $22.77
FY 2016 "City" Property Tax $747.65 +2.63% +$19.17
FY 2017 "City" Property Tax $755.70 +1.08% $8.05
FY 2018 "City" Property Tax $755.70 0.00% $0.00
FY 2019 "City" Property Tax $770.17 +1.91% $14.47
FY 2020 "City" Property Tax $770.17 0.00% $0.00
FY 2021 "City" Property Tax $769.08 -0.14% -$1.09
Average FY1989-FY2021 with Homestead Adj. +1.30% +$7.78
Average FY2017-FY2021 with Homestead Adj. +0.57% +$4.29
Average FY1989-FY2020 without Homestead Adj. +0.75% +$4.79
The average annual dollar change in residential property tax from 1989-2021 is an
increase of$7.78. The average annual dollar change over the last five years is an
increase of$4.29.
Projected impact on average residential property:
- • • � . • � -
. . � . .
FY 2022 "City" Property Tax $781.57 -0.93% +$12.49
FY 2023 "City" Property Tax $841.64 +7.69% +$60.07
FY 2024 "City" Property Tax $875.85 +4.06% +$34.21
FY 2025 "City" Property Tax $920.96 +5.15% +$45.11
FY 2026 "City" Property Tax $959.70 +4.21% +$38.74
* Denotes year of State-issued equalization orders.
^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%.
(1)The FY 2006 property tax calculation considers the 6.2% valuation increase for the average
residential homeowner as determined by the reappraisal.
(2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006.
(3)The City adopted a budget in FY 2011 and 2012 that provided no increase to the average
homeowner. The State of lowa underfunded the Homestead Property Tax Credit in both years
costing the average homeowner an additional $18.59 in FY 2012 and $11.51 in FY 2013. This
provided no additional revenues to the City, as this money would have come to the City from the
State if they appropriated the proper amount of funds.
FY 2022 Budget & Fiscal Policy Guidelines
Page 30
Homestead Property Tax Credit
The Homestead Property Tax Credit was established by the state legislature to reduce the
amount of property tax collected. The intent of the credit was to be a form of tax relief and
provide an incentive for home ownership. The State Homestead Property Tax Credit works by
discounting the tax collected on the first $4,850 of a property's taxable value. This has no impact
on what the City receives from property tax collections, but provides tax relief for the average
homeowner.
Beginning FY 2004, the State of lowa did not fully fund the State Homestead Property Tax
Credit resulting in the average homeowner paying the unfunded portion.Again, this has no
impact on what the City receives, however as a result has caused the average homeowner to
pay more taxes.
Historical Percent of lowa Homestead Property Tax Credit Funded by the State
of lowa
2003 100%
2004 85%
2005 81%
2006 78%
2007 77%
2008 73%
2009 72%
2010 72%
2011 64%
2012 62°/a
2013 78%
2014 100%
2015 100%
2016 100%
2017 100%
2018 100%
2019 100%
2020 100%
2021 100%
2022 100%
—% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%
� Percent Funded
FY 2022 Budget & Fiscal Policy Guidelines
Page 31
IMPACT ON COMMERCIAL PROPERTY - EXAMPLE
. .• � . � . , � � , .
. . � - . � .
FY 1989 "City" Property Tax $2,106.42 -$384.19 -15.43%
FY 1990 "City" Property Tax $2,086.50 -$19.92 -0.95%
FY 1991 "City" PropertyTax $2,189.48 +$102.98 +4.94%
FY 1992 "City" Property Tax $2,280.18 +$90.70 +4.14%
FY 1993 "City" Property Tax $2,231.05 -$49.13 -2.15%
FY 1994 "City" Property Tax $2,250.15 +$19.10 +0.86%
FY 1995 "City" Property Tax $2,439.60 +$189.45 +8.42%
FY 1996 "City" Property Tax $2,439.60 $0.00 0.00%
FY 1997 "City" Property Tax $2,659.36 +$219.76 +9.01%
FY 1998 "City" Property Tax $2,738.43 +$79.07 +2.97%
FY 1999 "City" Property Tax $2,952.03 +$213.60 +7.80%
FY 2000 "City" Property Tax $2,934.21 -$17.82 -0.60%
FY 2001 "City" Property Tax $2,993.00 +$58.86 +2.00%
FY 2002 "City" Property Tax $2,910.25 -$82.84 -2.76%
FY 2003 "City" Property Tax $3,186.27 +$276.03 +9.48%
FY 2004 "City" Property Tax $3,278.41 +$92.15 +2.89%
FY 2005 "City" Property Tax $3,349.90 +$71.48 +2.18%
FY 2006 "City" Property Tax (1) $3,152.52 -$197.38 -5.89%
FY 2007 "City" Property Tax $3,538.03 +$385.50 +12.23°/o
FY 2008 "City" Property Tax $3,688.64 +$150.62 +4.26%
FY 2009 "City" Property Tax $3,554.71 -$133.94 -3.63%
FY 2010 "City" Property Tax $3,524.48 -$30.23 -0.85%
FY 2011 "City" Property Tax $3,585.16 +$60.68 +1.72%
FY 2012 "City" Property Tax $3,736.64 +$151.48 +4.23%
FY 2013 "City" Property Tax $3,855.96 +$119.32 +3.19%
FY 2014 "City" Property Tax $3,942.14 +$86.20 +2.23%
FY 2015 "City" Property Tax (2) $3,896.93 $147.72 -$45.21 -1.15%
FY 2016 "City" Property Tax (3) $3,139.16 $692.62 -$757.77 -19.45%
FY 2017 "City" Property Tax (4) $3,364.61 $982.19 +$225.45 +7.18%
FY 2018 "City" Property Tax (5) $3,280.44 $959.11 -$84.16 -2.50%
FY 2019 "City" Property Tax (6) $3,278.23 $843.08 -$2.21 -0.07%
FY 2020 "City" Property Tax (7) $3,160.71 $860.57 -$117.52 -3.58%
FY 2021 "City" Property Tax (8) $3,169.30 $779.03 +$8.59 +0.27%
FY 1989-2021 Average Change +$20.57 +0.94%
2017-2021 Average Change +$6.03 +0.26%
e o usiness rope y ax re i
The average annual dollar change in commercial property taxes from 1989-2021 is a
increase of$20.57. The average annual dollar change over the last five years is a
increase of +$6.03.
FY 2022 Budget & Fiscal Policy Guidelines
Page 32
- • . � . • . -
. . , - . . . . .
.
FY 2022 "City" Property Tax $3,169.30 $742.27 $0.00 +0.35%
FY 2023 "City" Property Tax $3,412.89 $799.32 +$243.59 +3.63%
FY 2024 "City" Property Tax $3,551.61 $831.81 +$138.72 +3.91%
FY 2025 "City" Property Tax $3,734.54 $874.65 +$182.93 +5.15%
FY 2026 "City" Property Tax $3,891.65 $911.45 +$157.11 +4.21%
(1)The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2)The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3)The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4)The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5)The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6)The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7)The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8)The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9)The Business Property Tax Credit is estimated to be $742 and rollback to 90°/o in FY 2022.
FY 2022 Budget & Fiscal Policy Guidelines
Page 33
IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE
. _
• • • - • - � � • �
. . � - . � .
FY 1989 "City" Property Tax $5,900.35 -$1,074.65 -15.40%
FY 1990 "City" Property Tax $5,844.55 -$55.80 -0.95°/o
FY 1991 "City" Property Tax $6,133.00 +$288.45 +4.94%
FY 1992 "City" Property Tax $6,387.05 +$254.05 +4.14%
FY 1993 "City" Property Tax $6,249.45 -$137.60 -2.15°/o
FY 1994 "City" Property Tax $6,302.95 +$53.50 +0.86%
FY 1995 "City" Property Tax $5,891.05 -$411.90 -6.54°/o
FY 1996 "City" Property Tax $5,891.05 $0.00 0.00%
FY 1997 "City" Property Tax $5,690.75 -$200.30 -3.40°/o
FY 1998 "City" Property Tax $5,700.56 +$9.81 +0.17%
FY 1999 "City" Property Tax $5,536.70 -$163.86 -2.87°/o
FY 2000 "City" Property Tax $5,358.00 -$178.70 -3.23°/o
FY 2001 "City" Property Tax $5,533.00 +$175.00 +3.27%
FY 2002 "City" Property Tax $5,380.42 -$152.58 -2.76°/o
FY 2003 "City" Property Tax $5,106.00 -$274.42 -5.10°/o
FY 2004 "City" Property Tax $5,136.50 +$30.50 +0.60%
FY 2005 "City" Property Tax $5,036.00 -$100.50 -1.96°/o
FY 2006 "City" Property Tax (1) $5,814.61 +$778.61 +15.46%
FY 2007 "City" Property Tax $5,983.21 +$168.60 +2.90%
FY 2008 "City" Property Tax $6,184.95 +$201.74 +3.37%
FY 2009 "City" Property Tax $5,976.44 -$208.51 -3.37°/o
FY 2010 "City" Property Tax $5,909.69 -$66.75 -1.12°/o
FY 2011 "City" Property Tax $6,011.44 +$101.75 +1.72%
FY 2012 "City" Property Tax $6,265.43 +$253.99 +4.23%
FY 2013 "City" Property Tax $6,465.48 +$200.05 +3.19%
FY 2014 "City" Property Tax $6,610.00 +$144.52 +2.24%
FY 2015 "City" Property Tax (2) $6,131.80 $147.72 -$478.20 -7.23°/o
FY 2016 "City" Property Tax (3) $5,256.41 $692.62 -$875.39 -14.28%
FY 2017 "City" Property Tax (4) $5,043.36 $982.19 -$213.05 -4.05°/o
FY 2018 "City" Property Tax (5) $4,917.78 $959.11 -$125.58 -2.49°/o
FY 2019 "City" Property Tax (6) $4,869.91 $843.08 -$47.87 -0.97°/o
FY 2020 "City" Property Tax (7) $4,713.76 $860.57 -$156.15 -3.21°/o
FY 2021 "City" Property Tax (8) $4,694.17 $779.03 -$19.59 -0.42°/o
FY 1989-2021 Average Change -$69.12 -1.04%
2017-2021 Average Change -$112.45 -2.23%
e o usiness rope y ax re i
The average annual dollar change in industrial property taxes from 1989-2021 is a
decrease of $69.12. The average annual dollar change over the last five years is a
decrease of $112.45.
FY 2022 Budget & Fiscal Policy Guidelines
Page 34
- . � • . .
. � - � . . . .
�
FY 2022 "City" Property Tax $4,679.97 $742.27 -$14.20 -0.30%
FY 2023 "City" Property Tax $5,039.67 $799.32 +$359.70 +7.69%
FY 2024 "City" Property Tax $5,244.52 $831.81 +$204.85 +4.06%
FY 2025 "City" Property Tax $5,514.63 $874.65 +$270.11 +5.15%
FY 2026 "City" Property Tax $5,746.64 $911.45 +$232.01 +4.21%
(1)The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2)The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3)The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4)The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5)The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6)The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7)The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8)The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9)The Business Property Tax Credit is estimated to be $742 and rollback to 90°/o in FY 2022.
IMPACT ON MULTI-RE""'^"�.". """"^"�Y - EXA""". ^
� � •
. - . � .
FY 2015 "City" Property Tax $2,349.34
FY 2016 "City" Property Tax $2,225.69 -$123.65 -5.26%
FY 2017 "City" Property Tax $2,160.39 -$65.30 -2.93%
FY 2018 "City" Property Tax $2,015.48 -$144.91 -6.71%
FY 2019 "City" Property Tax $1,870.21 -$145.27 -7.21%
FY 2020 "City" Property Tax $1,737.92 -$132.29 -7.07%
FY 2021 "City" Property Tax $1,896.65 +$158.73 +9.13%
Average FY 2016-FY 2021 -$75.45 -3.34%
The average annual dollar change for Multi-Residential property from FY 2015-FY 2021
is a decrease of$75.45 for a total savings of$452.69.
- • • � . • � -
. �
FY 2022 "City" Property Tax $1,780.10 -$116.55 -6.15%
FY 2023 "City" Property Tax $1,810.42 +$30.32 +1.70%
FY 2024 "City" Property Tax $1,667.08 -$143.34 -7.92%
FY 2025 "City" Property Tax $1,752.94 +$85.86 +5.15%
FY 2026 "City" Property Tax $1,826.68 +$73.74 +4.21%
eno es year o a e-issue equa iza ion or ers.
FY 2022 Budget & Fiscal Policy Guidelines
Page 35
Beginning in FY 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 3 or more
units. Rental properties of 2 units were already classified as residential property. The
State of lowa will not backfill property tax loss from the rollback on multi-residential
property.
The rollback will occur as follows:
- . . . . .
2017 86.25% $331,239
2018 82.50% $472,127
2019 78.75% $576,503
2020 75.00% $691,640
2021" 71.25% $952,888
2022 67.50% $1,371,435
2023 63.75% $1,293,125
2024 56.41% $1,458,182
Tota I $7,147,139
*55.07% = Current residential rollback
^ 17% State Equalization Order in FY 2021
This annual loss in tax revenue of$1,371,435 in FY 2022 and $1,458,182 from multi-
residential property when fully implemented in FY 2024 will not be backfilled by the
State. From Fiscal Year 2017 through Fiscal Year 2024 the City will lose $7,147,139 in
total, meaning landlords will have paid that much less in property taxes. The state did
not require landlords to charge lower rents or to make additional investment in their
property.
There were reappraisals done in Fiscal Year 2016 that may have increased the taxable
value for the properties considered multi-residential; however, the overall assessments
for multi-residential property has remained relatively flat except for twelve large
properties that increased significantly. The assessed value for multi-residential
properties in Fiscal Year 2017 did not increase and landlords began receiving tax breaks
with their September 2016 tax payments.
FY 2022 Budget & Fiscal Policy Guidelines
Page 36
HISTORY OF INCREASES IN PROPERTY TAX ASKINGS
� . � , . - . . .
� . . - .
FY 1989 $10,918,759 -12.00% -11.40%
Sales Tax Initiated
FY 1990 $10,895,321 -0.21% -0.89%
FY 1991 $11,553,468 +6.04% +3.77%
FY 1992 $12,249,056 +6.02% +3.58%
FY 1993 $12,846,296 +4.88% +5.19%
FY 1994 $13,300,756 +3.54% +0.33%
FY 1995 $13,715,850 +3.12% +2.40%
FY 1996 $14,076,320 +2.63% -0.87%
FY 1997 $14,418,735 +2.43% -0.42%
FY 1998 $14,837,670 +2.91% -0.71%
FY 1999 $15,332,806 +3.34% 0.00%
FY 2000 $15,285,754 -0.31% -0.17%
FY 2001 $15,574,467 +1.89% 0.00%
FY 2002 $15,686,579 +0.72% 0.00%
FY 2003 $15,771,203 +0.54% -5.00%
FY2004 $16,171,540 +2.54% 0.00%
FY 2005 $16,372,735 +1.24% +0.03%
FY 2006 $16,192,215 -1.10% +1.72%
FY 2007 $17,179,994 +6.10% -1.72%
FY 2008 $18,184,037 +5.84% 0.00%
FY 2009 $18,736,759 +3.04% +2.76%
FY 2010 $19,095,444 +1.91% 0.00%
FY 2011 $19,878,962 +4.10% +2.47%
FY 2012 $21,284,751 +7.07% +5.00%
FY 2013 $22,758,753 +6.93% +5.00%
FY 2014 $23,197,623 +1.93% +4.90%
FY 2015 $24,825,015 +7.02% +3.23%
FY 2016 $24,906,544 +0.33% +2.63%
FY 2017 $26,375,291 +5.90% +1.08%
FY 2018 $25,863,049 -1.94% 0.00%
FY 2019 $26,494,205 +2.44% +1.91%
FY 2020 $26,296,081 -0.75% 0.00%
FY 2021 $26,202,568 -0.36% -0.14%
Avera e FY 1989-2021 +2.81% +0.75%
**Does not reflect State unfunded portion of Homestead Credit.
FY 2022 Budget & Fiscal Policy Guidelines
Page 37
IMPACT ON TAX ASKINGS AND AVERAGE RESIDENTIAL PROPERTY
To maintain the current level of service based on the previous assumptions would
require the following property tax asking increases:
. . - . - . . . � . . . . � .
� . � . . - . . - . - . . -
FY 2021 $26,202,568
FY 2022 $26,630,342 +1.63% +1.62% +$12.49
FY2023 $29,162,508 +9.51% +7.69% +$60.07
FY 2024 $30,861,600 +5.83% +4.06% +$34.21
FY 2025 $32,907,331 +6.63% +5.15% +$45.11
FY 2026 $34,974,146 +6.28% +4.21% +$38.74
The recommended guideline is a 1.62% or $12.49 increase for the average
residential property owner assuming the Homestead Property Tax Credit is fully
funded. A one percent increase in the tax rate will generate approximately
$268,434.
These guidelines include $247,455 for recurring and $154,347 for non-recurring
improvement packages.
In order to achieve no increase to the average residential property owner, no
improvement packages would be funded and the maintenance level budget
would need to be reduced by $23,198.
Senate File 634 passed during the 2019 legislative sessions, makes changes to lowa
city and county budgets and taxes for Fiscal Year 2021 and later. Additional steps have
been added to the budget approval process:
1. Determine a maximum amount of taxes that the municipality will certify to
be levied as property taxes from certain levies in the next fiscal year
(called the "total maximum property tax dollars"), and prepare a resolution
that establishes that amount of"total maximum property tax dollars" for the
next fiscal year.
The "total maximum property tax dollars" includes taxes for city
government purposes under section 384.1 (general fund levy), for the
city's trust and agency fund for pensions under section 384.6, subsection
1, for the city's emergency fund under section 384.8, and for the levies
authorized under certain subsections of section 384.12: subsection 8
(certain bridges), subsection 10 (maintenance of a municipal transit
system or regional transit district), subsection 11 (leases of buildings to be
FY 2022 Budget & Fiscal Policy Guidelines
Page 38
operated as civic centers), subsection 12 (operating and maintaining a
civic center), subsection 13 (planning a sanitary disposal project),
subsection 17 (premiums for various insurance types), and subsection 21
(support of a local emergency management commission), but excludes
additional approved at election under section 384.12, subsection 19.
The maximum property tax dollars calculated and approved by resolution
includes those amounts received by the municipality as replacement taxes
under chapter 437A or 437B.
2. Set a time and place for a public hearing on the resolution.
3. Publish notice of the public hearing on the resolution in the newspaper(s)
for official notices between 10 and 20 days prior to the public hearing.
Additionally, if the municipality has a website, the notice must be posted
on the website, and if the municipality maintains social media accounts,
then the notice (or a link to the notice) must be posted on each social
media account by the day of publication in the newspaper(s).
Notice of the public hearing on the resolution must include:
a. The sum of the current fiscal year's actual property taxes certified
for levy under identified levies.
b. The "effective tax rate" as defined in the code for those levies.
c. The proposed maximum property tax dollars that may be certified
for levy for the budget year under the identified levies.
d. If the proposed maximum property tax dollars exceeds the current
fiscal year's actual property tax dollars certified, a statement of the
major reasons for the increase.
4. Hold a public hearing on the resolution, at which residents and property
owners may present oral or written objections.
5. Following the public hearing, the governing body may decrease the
proposed "maximum property tax dollars" amount but may not increase
the amount.
6. Adopt the resolution. If the "total maximum property tax dollars" amount is
greater than 102% of the current fiscal year's actual property taxes from
the identified levies, then the resolution must pass the governing body by
a two-thirds majority of the full City Council.
FY 2022 Budget & Fiscal Policy Guidelines
Page 39
CAPITAL IMPROVEMENT BUDGET GUIDELINES
U. INTEGRATION OF CAPITAL RESOURCES
To obtain maximum utilization, coordination and impact of all capital improvement
resources available to the City, state and federal block and categorical capital
grants and funds shall be integrated into a comprehensive five-year Capital
Improvement Program (CIP) for the City of Dubuque.
V. INTEGRITY OF CIP PROCESS
The City shall make all capital improvements in accordance with an adopted
Capital Improvement Program (CIP). If conditions change and projects must be
added and/or removed from the CIP, the changes require approval by the City
Council.
W. RENOVATION AND MAINTENANCE
Capital improvement expenditures should concentrate on renovating and
maintaining existing facilities to preserve prior community investment.
X. NEW CAPITAL FACILITIES
Construction of new or expanded facilities which would result in new or
substantially increased operating costs will be considered only if:
1) their necessity has been clearly demonstrated
2) their operating cost estimates and plans for providing those operating costs
have been developed
3) they can be financed in the long term; and
4) they can be coordinated and supported within the entire system.
Y. COOPERATIVE PROJECTS
Increased efforts should be undertaken to enter mutually beneficial cooperative
capital improvement projects with the county, school district and private groups.
Examples include cost-sharing to develop joint-use facilities and cost-sharing to
improve roads and bridges are examples.
FY 2022 Budget & Fiscal Policy Guidelines
Page 40
Z. USE OF GENERAL OBLIGATION BONDS
DISCUSSION
The lowa Constitution limits the General Obligation debt of any city to 5% of the actual
value of the taxable property within the city. The lowa legislature has determined that
the value for calculating the debt limit shall be the actual value of the taxable property
prior to any "rollback" mandated by state statute.
On October 15, 2012, the City Council adopted a formal Debt Management Policy for
the City of Dubuque. Prior to adoption of the formal policy, the City had already been
practicing much of the policy, although the formal policy included some new additions.
The most significant components of the Debt Management Policy include an internal
policy of maintaining the City's general obligation outstanding debt at no more than 95%
(except as a result of disasters) of the limit prescribed by the State constitution as of
June 30th of each year. It is projected as of June 30, 2021 the City will be at 45.72%.
City will not use short-term borrowing to finance operating needs except in the case of
an extreme financial emergency which is beyond its control or reasonable ability to
forecast. Currently there is no such debt, and none will be recommended in this
process.
Bond Financing Stipulations
• Recognizing that bond issuance costs (bond counsel, bond rating, and financial
management fees) add to the total interest costs of financing:
• Bond financing should not be used if the aggregate cost of projects to be
financed by the bond issue is less than $500,000
• City will consider long-term financing for the construction, acquisition,
maintenance, replacement, or expansion of physical assets (including land) only
if they have a useful life of at least six years
• City shall strive to repay 20 percent of the principal amount of its general
obligation debt within five years and at least 40 percent within ten years.
• The City shall strive to repay 40 percent of the principal amount of its revenue
debt within ten years.
Debt Service Payments
Total annual debt service payments on all outstanding debt of the City shall not exceed
25% of total annual receipts across all the City's funds. As of June 30, 2021, it is
projected the City will be at 8.80%.
Internal Reserve
It shall be the goal of the City to establish an internal reserve equal to maximum annual
debt service on future general obligation bonds issued that are to be abated by
revenues and not paid from ad-valorem property taxes in the debt service fund. This
shall begin with debt issued after July 1, 2013. This reserve shall be established by the
fund or revenue source that expects to abate the levy, and shall be carried in said fund
or revenue source on the balance sheet as a restricted reserve. This reserve does not
FY 2022 Budget & Fiscal Policy Guidelines
Page 41
exist now, except where required by bond covenants. This internal reserve would be
implemented by adding the cost of the reserve to each debt issuance.
General Obligation Debt
Fiscal Year 2021 Debt
FY 2021 Debt Limit: The FY 2019 assessable value of the community for calculating the
statutory debt limit is $4,754,765,065, which at 5%, indicates a total General Obligation
debt capacity of$237,738,253.
Based on Outstanding G.O. debt (including tax increment debt, remaining
payments on economic development TIF rebates, and general fund lease
agreement) on June 30, 2021 will be $109,412,712 (45.72% of the statutory debt
limit) leaving an available debt capacity of$129,885,536 (49.78%). In FY 2020 the
City was at 50.22% of statutory debt limit, so 45.72% in FY 2021 is a 8.95%
decrease in use of the statutory debt limit.
It should be noted that most of the City of Dubuque's outstanding debt is not paid for
with property taxes (except TIF), but is abated from other revenues. Exceptions include
one issuance for the replacement of a Fire Pumper truck in the amount of $1,410,000
with debt service of$64,800 in FY 2021 and one issuance for the franchise fee litigation
settlement in the amount of $2,800,000 with debt service of$135,000 in FY 2021.
Included in the debt is $5,998,977 of property tax rebates to businesses creating and
retaining jobs and investing in their businesses.
Statutory Debt Limit
. � - . � . . � - . . - . , � - .
. � . .
2020 $227,661,474 $114,324,749 50.22%
2021 $239,298,248 $109,412,712 45.72%
2022 $241,616,084 $107,921,270 44.67%
FY 2022 Budget & Fiscal Policy Guidelines
Page 42
Fiscal Year 2022-2026 Five-Year Capital Im�rovement Program Debt
The City will issue $54,053,140 in new debt in the recommended 5-year CIP,
mostly for fire truck and pumper replacements, fire station expansion, road
improvements, sanitary sewer improvements, water improvements, additional
downtown parking, and maintenance of Five Flags.
Project FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total
Airport Rehab Taxiway A $ 577,000 $ 283,000 $ 860,000
Downtown Parking Ramp GDTIF $ 4,050,000 $ 9,078,000 $ 6,000,000 $19,128,000
Finance General Ledger Software $ —
Fire HVAC Headquarters $ 169,184 $ 84,894 $ 254,078
Fire Ladder& Pumper $ 1,582,154 $ 425,460 $ 433,000 $ 2,440,614
Fire Station Expansion $ 700,620 $3,194,028 $ 3,894,648
Five Flags GDTIF $ 5,750,000 $ 5,750,000
Riverfront Docks/Property
Acquisition GDTIF $ 1,300,000 $ 1,300,000
Smart Parking GDTIF $ 222,000 $ 450,000 $ 672,000
Solid Waste Collection Vehicles $ 175,000 $ 235,000 $ 55,000 $ 265,000 $ 106,000 $ 836,000
Sanitary Sewer Projects $ 5,170,303 $ 4,224,310 2871401 4700000 1296786 $18,262,800
Water Projects $ 655,000 $ 655,000
Total New Debt $12,277,457 $14,583,494 $15,763,755 $6,381,620 $5,046,814 $54,053,140
In addition, the City will access $3,424,668 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 2022 2023 2024 2025 2026 Total
Stormwater Upper Bee Branch Rail Road $ 2,394,668 $ 2,394,668
Water CIWA Purchase& Improvements $ 1,030,000 $ 1,030,000
Total Draw Downs $ 3,424,668 $ — $ — $ — $ — $ 3,424,668
FY 2022 Budget & Fiscal Policy Guidelines
Page 43
The City will retire $96,569,252 of existing debt over the next five-years (FY22-
FY26).The following chart shows the net reduction of debt from Fiscal Year 2022 -
Fiscal Year 2026:
FY FY FY FY FY
Project 2022 2023 2024 2025 2026 Total
New Debt $ 12,277,457 $ 14,583,494 $ 15,763,755 $ 6,381,620 $ 5,046,814 $ 54,053,140
Previously
Issued SRF
Draw Downs $ 3,424,668 $ — $ — $ — $ — $ 3,424,668
Retired Debt -$16,890,599 -$18,413,294 -$19,666,659 -$20,461,290 -$21,137,410 -$96,569,252
Net Debt
Reduction -$1,188,474 -$3,829,800 -$3,902,904 -$14,079,670 -$16,090,596 -$39,091,444
Outstanding General Obligation (G.O.) debt on June 30, 2022 is projected to be
$107,921,270 (44.67% of the statutory debt limit), leaving an available debt capacity
of $133,694,813 (55.33%). In Fiscal Year 2016, the City was at 86.13% of statutory
debt limit, so 44.67°/a in Fiscal Year 2022 is a 41.46% 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$146,790,767 on June 30, 2022 .
The total City indebtedness as of June 30, 2022, is projected to be $254,712,037
(44.67% 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
$39,958,904 less in debt as of June 30, 2022.
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.
FY 2022 Budget & Fiscal Policy Guidelines
Page 44
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)
$25
$23.4
$22.4
$21.1 $21.2 $21.6 $21.6
$20
$19.7 $20.5
$18.1 $18.4 $18.7
$17.4 $17.1 $16.9
$16.4 $17.8 '
�
$15 $14.3 �
� $14.8 $14.6
0
= 0
� 1
$10
6.4
5.0
$5
1.0 1.0 1.0 1.0 1.0
$0
C4 f� ap � O � N M � � (D f� 00 � O �
� � � N N N N N N N N N N M M
L.}L L.}L L.L L.L LL L�L L�L L�L LL L�L L�L L�L L}L L.}L L�L L.�L
� Retired Debt � New Debt
*In Fiscal Year 2020, the City had $5,908,200 forgiven of the Bee Branch Upper Bee
Branch Loan on June 30, 2020 which increased principal payments reflected.
FY 2022 Budget & Fiscal Policy Guidelines
Page 45
Statutory Debt Limit Used
(as of June 30th)
100%gp% o
87/o
82% 79% 79%
0 86% go/p 72% 74% 70% o 0
75/0 66/0 66/o
63% 62%
56%
50°/a o
50% 46/0 45% 44% 45% o
40/0 37%
33°/a 29%
25% 21%
25% 18%
—%
TI TI TI TI TI T TI �'I TI �'I TI TI TI TI TI TI TI
� � � � � � � � � � � � � � � � �
� j � � � N W N N N N N N N N W W
C17 � V 0� <D O � N W A C77 01 V 00 <O O �
_ FY16 Adopted f FY22 Recommended
The City also has debt that is not subject to the statutory debt limit. This debt includes
revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater
fees on June 30, 2022 will have a balance of $146,790,767. The total City
indebtedness as of June 30, 2022, is projected to be $254,712,037. The total City
indebtedness as of June 30, 2021, was $255,296,689. In FY 2022, the City will have a
projected $(584,652) or (0.23)% more in debt. The City is using debt to accomplish
necessary projects and to take advantage of the attractive interest rates in the current
market.
The following chart shows Dubuque's relative position pertaining to use of the statutory
debt limit for Fiscal Year 2022 compared to the other cities in lowa for Fiscal Year 2020
with a population over 50,000:
FY 2022 Budget & Fiscal Policy Guidelines
Page 46
Fiscal Year 2020 Legal Debt Limit Comparison for Eleven Largest lowa Cities
Rank City Legal Debt Limit Statutory Debt Percentage of Legal
(5%) Outstanding Debt Limit Utilized
11 Sioux City $ 234,052,896 $ 149,054,999 63.68 %
10 Des Moines $ 633,944,619 $ 399,100,000 62.96 %
9 Davenport $ 362,087,372 $ 207,415,000 57.28 %
8 Waterloo $ 198,578,109 $ 106,207,641 53.48 %
7 Cedar Rapids 583,572,883 286,435,000 49.08 %
6 W. Des Moines $ 414,397,845 $ 203,180,000 49.03 %
5 Dubuque (FY22) $ 241,616,084 $ 108,727,970 45.00 °/a
4 Ankeny $ 303,268,096 $ 122,095,000 40.26 %
3 Ames $ 242,136,755 $ 64,305,000 26.56 %
2 Council Bluffs $ 256,079,718 $ 57,043,627 22.28 %
1 lowa City $ 306,678,510 $ 68,160,000 22.23 %
Average w/o Dubuque 44.68 %
Percent of Legal Debt Limit Utilized
so�io
62.96% 63.68%
60% 57.28%
53.48%
44.68% 45.00%
47.37% 49.03%
40.26%
40%
26.56%
22.23% 22.28%
20% � � �
0%
o�aG��.� G\����5 P�eS P��e�� P�e�a�,e e��yry`L� ��a,��a5 y�o\�e5 �a�e��o° a�e�,�o� ��o\�e5 `o��G��.�
� Go�� O J��Q� Geda ��e O �e 5
Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in
lowa with a population over 50,000 and Dubuque is slightly above the average of the
other Cities.
FY 2022 Budget & Fiscal Policy Guidelines
Page 47
Total Debt (In Millions)
$324
$302.3
$297 $290.1
$282.0 $279.9
$295.5
$270 $285.5 L $265.6 $267.4
$275.1� $255.3 $255.9 �251.5
$264.9 $248.2
$243 $252.5 $254.7 $234.7
� $244.3 $241.4 $219.1
� $216 $226.2 199.3
�
$189 179.0
$162 158.8
137.4
$135
$108 $119�
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
FY16 Adopted � FY22 Recommended
By the end of the recommended 5-Year Capital Improvement Program (CIP) budget the
total amount of debt for the City of Dubuque would be $219.1 million (37% of the
statutory debt limit) and the projection is to be at $119.5 million (18% of statutory debt
limit) within 10 years.
Part of the City's FY 2014 debt was in the form of a grant from the lowa Flood Mitigation
Program. Through a new state program, the City is able to issue $28.25 million in
revenue bonds payable from the 5 percent State Sales Tax increment for projects in the
Bee Branch Watershed allowing the City to complete the Bee Branch Creek
Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete
North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water
Plant Flood Control and complete 17t" Street Storm Sewer over the next twenty years.
As we approach the preparation of the FY 2022-2026 Capital Improvement Program
(CIP) the challenge is not the City's capacity to borrow money but (a) how to identify,
limit, and prioritize projects which justify the interest payments and; (b) how to balance
high-priority projects against their impact on the property tax rate.
FY 2022 Budget & Fiscal Policy Guidelines
Page 48
There are many high priority capital improvement projects which must be constructed
during the FY 2022 - FY 2026 period. The reductions in DRA rent and distribution over
the years may impact the need to borrow for projects. As in the past, debt will be
required on several major capital projects, including the Bee Branch Watershed
Project, Airport Improvements, Park Improvements, Sidewalk and Street
Improvements, Sanitary Sewer Fund, Parking Fund, and Water Fund. In FY 2022 - FY
2026, borrowings will also include smaller projects and equipment replacements such
as Park developments and Public Works equipment. These smaller borrowings will be
for a term not exceeding the life of the asset and not less than six years in accordance
to the Debt Management Policy. Alternative sources of funds will always be evaluated
(i.e. State Revolving Loan Funds) to maintain the lowest debt service cost.
AA. ROAD USE TAX FUND
DISCUSSION
Actual Road Use Tax Fund receipts are as follows:
Road Use Tax
(In Millions)
FY 2010 $5.1
FY 2011 $5.2
FY 2012 $5.5
FY 2013 $5.5
FY 2014 $5.7
FY 2015 $6.0
FY 2016 $7.1
FY 2017 $7.2
FY 2018 $7.3
FY 2019 $7.5
FY 2020 $7.4
$1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0
The FY 2021 budget was based on receiving $7,445,877 in Road Use Tax funds. In FY
2021, 90% of the Road Use Tax income is in the operating budget. The State of lowa
increased the gas tax 10 cents per gallon in FY 2016.
With increases in City DMATS and State Road Use Tax funds, the City will be able to
substantially add to the number of street lights and continue with major road
improvements such as North Cascade Road, Central Avenue, and White Street.
FY 2022 Budget & Fiscal Policy Guidelines
Page 49
It is preferable to shift Road Use Tax funds to the capital budget for street maintenance
and repair to reduce the need to borrow funds for routine street maintenance and
improvements. This shift cannot occur until there are increased revenues or reduced
expense that would allow this shift without a property tax impact.
BB. COMMERCIAL AND INDUSTRIAL DEVELOPMENT
Current City, commercial and industrial development efforts should be continued to (a)
preserve current jobs and create new job opportunities and (b) enlarge and diversify
the economic base. Financing these efforts and programs should continue to be a high
priority.
CC. HOUSING
To maintain an adequate supply of safe and decent housing, the City should strive to
preserve existing single family and rental housing that is not substandard and provide
opportunities for development of new housing, including owner occupied, within the
City's corporate limits for all residents, particularly for people of low and moderate
income. Workforce rental housing is becoming increasingly important and the City
provides incentives for building rehabilitations.
DD. SALES TAX
C � �E
Sales Tax revenue shall be used according to the following split:
Sales Tax 50%: Property Tax Relief
�
Sales Tax 30%:
(a)The reduction by at least 75% of street special assessments.
��� (b)The maintenance and repair of streets.
�0°�'0
Sales Tax 20%:
(a)The upkeep of City-owned property such as sidewalks, steps, storm
��o-�� sewers, walls, curbs, traffic signals and signs, bridges, buildings, and
facilities (e.g.Airport, Five Flags Center, Library, Law Enforcement Center,
City Hall, Fire Stations, Parks, and Swimming Pools).
(b)Transit equipment, such as buses
(c) Riverfront and wetland development
(d) Economic Development Projects
EE. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE
DUBUQUE RACING ASSOCIATION
DISCUSSION
FY 2022 Budget & Fiscal Policy Guidelines
Page 50
The contract with the Dubuque Racing Association calls for distribution at the end of its
fiscal year, December 31St, of 50 percent of its net cash operating funds to the City of
Dubuque. In early-February, the City receives payment of proceeds to be distributed.
These proceeds are then allocated for capital improvements, with the highest priority
given to reducing the City's annual borrowing.
The Dubuque Racing Association provides the City with projections of future
distributions. Since gaming is a highly volatile industry, the estimates are discounted
prior to including them in the City's Five-Year CIP.
Consistent with past use of DRA distributions, 100% of the February 2022 projections of
operating surplus have been anticipated as resources to support the Fiscal Year 2022
capital improvement projects. The estimates received from the DRA will be reduced by 5
percent for FY 2024 resources, 10 percent for FY 2025, and 15 percent for FY 2026
resources, to provide a margin of error in case the estimates are not realized.
In Fiscal Year 2022, the City anticipates distribution of a significant amount of net cash
proceeds for use in the Capital Improvement Program. These amounts will be
budgeted in the Five-Year CIP in the year they are received and will be used to reduce
required General Obligation borrowing. The three out-years will be discounted by 5
percent, 10 percent, and 15 percent respectively.
FF. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING
BUDGET EXPENSE
Capital improvement expenditures that will reduce future maintenance and operating
expense will receive priority funding and these types of initiatives will be encouraged in
all departments and funding sources as a means of maximizing the use of available
resources. This emphasis reflects fiscally responsible long-range planning efforts.
GG. USE OF GAMING-RELATED RECEIPTS
^�SCUSSION
On April 1, 2004, a new lease took effect with the Dubuque Racing Association for lease
of the Dubuque Greyhound Park and Casino. This new lease was negotiated after the
FY 2005 budget was approved and raised the lease payment from '/2% of coin-in to 1%
of coin-in. This new lease and the expansion of gaming at Dubuque Greyhound Park
and Casino, from 600 gaming positions to 1,000 gaming positions, effective August 1,
2005, provided additional revenues to the City of Dubuque.
FY 2022 Budget & Fiscal Policy Guidelines
Page 51
The following shows the historical split of DRA gaming taxes and rents between the
City's operating and capital budgets:
Split of DRA Gaming Taxes & Rents Between Operating & Capital Budgets
125% —
100% —
50% 25% 24% 15% 14% 10% 3% —% 1% 3% 4% 4% —% —% 2% 3% 4% 5%
75% , � � � � � � � � � � � � � � � �
50% — 0 97% 100% 99% 97% 96% 96% 100%100% 98% 97% 96% 95%
75% 76%
85% 87% 90/o
25% — 50% � � � � � � , , , , � , , , , ,
-% -
��oD� ��oh ��o����p ��,�� ���� ��,�h�-l��M ��,�1 ��,�4� ���� ���,o ���� ����, ���� ���D� ���h ����
Operating Capital
Notable Changes:
*FY 2010 The operating portion of the split now includes the debt service required on
the 2002 general obligation bonds for the America's River Project that was previously
considered as part of the capital portion of the DRA lease. Debt obligations are
considered a continuing annual expense and are more accurately reflected as part of
the operating portion of the DRA lease.
**FY 2016 A reduction in revenue in the Greater powntown TIF urban renewal area
resulted in reduced revenues to make debt payments and it was necessary for the
general fund to support $84,104 in FY 2015 and $78,242 in FY 2016 of debt service
payments, which were funded by reducing the amount of gaming revenues from taxes
and DRA lease that goes to capital recommended in FY 2016.
The Diamond Jo expanded to a land-based barge casino facility and increased to 1,100
slots on December 1, 2008. This expansion was projected to decrease the Q gaming
market and correspondingly the coin-in by just over 21 percent. Based on the projected
market share loss, the City did not receive a distribution of cash flows from the Dubuque
Racing Association (DRA) in Fiscal Years 2009 and 2010.
DRA distributions restarted in FY 2011 instead of the projected year of FY 2012.
FY 2022 Budget & Fiscal Policy Guidelines
Page 52
The reduction in the DRA's market impacts the City's lease payment from the DRA. The
current lease requires the DRA to pay the City 1 percent of coin in from slot machines
and 4.8 percent of gross revenue from table games. The following chart shows the
impact of the reduction of lease payments on the City's five-year projections based on
revised projections from the DRA each year:
. . . - .
� � . .
2009-2013 -$7,000,000
2010-2014 -$4,800,000
2011-2015 -$1,000,000
2012-2016 -$3,200,000
2013-2017 -$2,900,000
2014-2018 No Chan e
2015-2019 -$3,200,000
2016-2020 -$3,100,000
2017-2021 -$1,300,000
2018-2022 -$1,400,000
2019-2023 $308,076
2020-2024 $131,141
2021-2025 +$675,306
2022-2026 -$436,956
Total Im act -$27.2 Million
From FY 2009 thru FY 2026, the City's lease payments have been reduced $27.2
Million.
In Calendar Year 2020, gross gaming revenues were down 24.3% for the DRA and the
Diamond Jo was down -26.9%. Due to COVID, both casinos in the market were closed
from March 17, 2020 to May 31, 2020. The DRA showed decreases in hotel room
revenue, food, and beverage sales and entertainment ticket sales.
The lowa Legislature passed Sports Betting Legislation in June 2019. DRA started
Retail (On-Site) on August 27, 2019 with Mobile Wagering starting on November 12,
2019. Diamond Jo Casino partnered with Betfair Interactive US LLC (FanDuel
Sportsbook) and they started Sports Betting Retail in September 2019 and Mobile
Wagering in September 2020. DRA had $562,601 in Sports Book revenue and
$16,141,637 in Sports Betting handle during 2020. With an amended lease, the City
began receiving 0.5% of the handle from Sports Betting in FY 2021.
The current Dubuque market is approximately $88 million annually in 2020 down from
the $120 million market in 2019. DRA share of the market was 42.7% in 2020 and
41.2% in 2019. The DRA has projected a 21% increase in gross gaming revenue for
Calendar Year 2021. The DRA projects Sports Betting revenue in 2021 of $760,271.
The DRA gaming projections include minimal growth in revenues over the next five
FY 2022 Budget & Fiscal Policy Guidelines
Page 53
years with a growth rate of 2.4% in FY 2022, a growth rate of 2.1% in FY 2023, and a
growth rate of 0.5% in FY 2024 and beyond.
During 2019, Illinois passed legislation regarding six additional casinos, Sports Betting
and increased Video Lottery Terminals (VLT) through the state. The casino license
issued for Rockford will be the closest. The Rockford City Council voted on October 7,
2019 to certify the Hard Rock Casino as the city's choice for a new casino. On October
28, 2020, the Illinois Gaming Commission delayed its decision to approve the license for
the new Rockford casino stating that they would need upwards of six months to make a
final ruling. The Hard Rock Casino plans construction of a $330M casino and hotel.
Construction will last approximately 18 to 24 months.
Sport Betting in Illinois was approved in June 2019 with the first Retail Sports Book
going live on March 9, 2020 and Mobile Sports Wagering going live on June 18, 2020.
Illinois is allowing an increase in the number of VLT's per location from 5 to 6. Currently
in the five counties in Illinois between Dubuque and Rockford, there are approximately
400 locations with 2076 VLT's. Each able to increase by one additional machine or a
20% increase in the number of terminals in this area. The terminals in this five county
area had revenue of $120M in 2019, similar to the amount wagered in the Dubuque
market.
The 50¢ per patron tax previously received from the Diamond Jo was replaced by a
$500,000 fixed payment based on their revised parking agreement which expires June
16, 2029. The riverboat related tax on bets increased from $344,400 in FY 2021 to
$304,000 in FY 2022.