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Dollars & Cents Public Information Brochure Copyrighted J une 7, 2021 City of Dubuque Action Items # 3. City Council Meeting ITEM TITLE: Dollars & Cents Public Information Brochure SUM MARY: City Manager providing a copy of the Fiscal Year 2022 Dollars & Cents public information brochure. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type Dollars& Cents Brochure Supporting Documentation % . � • � ; � „ � / Fiscal Year , 2022 , . • . • • � � • � � FY2022 City Property Tax Rate Comp . Zo �,9.z4 $11.56 $18.26 $16.18 $15.11 $15.88 City of Dubuque FY2022 �5 $14.45 $14.95 Proner�y Tax Rate �>>.» • $9.8890 per thousand dollars assessed value �� 9�81 Ss.es $9.95 • Decrease of 2.51% from FY2021 ��• �• ��• ��• 5 . � . , . , , , . � i � � Residential $0 No change � Commercial $50.64 less 1.6% decrease �e� titi, eo� e� c,`� o.°e c,`� �aS o�' �oey �o'�� °° I nd ustria l $88.98 I ess 1.9% d ec rease P pJ`''�J P°� ez��c 5�°°} oo�°°�J `°�'a eaa�Qa� o`°�e°� oes�� oo�`�� atie �o y�° �,� � c, Multi-Residential $144.99 less 7.64% increase aJ Q�� • Highest-ranked city (Waterloo, $19.24) is 94.56% higherthan Dubuque ' ��- _ • Average of other 10 cities ($14.95) is 51.11% higher than Dubuque �� $10.1440 $9.8890 2.51% Decrease *Includes the transit taz levy adopted by the Des Moines Area Regional Transit Authority for comparability. , . _ City Saves $4.5 Million in Interest, . . . Credit Rating Upgraded The City of Dubuque survived the pandemic without making service cuts, laying off employees, or increasing taxes. This was possible because of important decisions In May 2021, Moody's Investor Services upgraded the City's Water made by the mayor and city council creating the Enterprise's outstanding revenue bonds to A1 from A2 and affirmed the City's strong financial position going into the crisis Aa3 credit rating on general obligation bonds. That same month, the -- with ample financial reserves, high credit ratings, City sold $29.5 million in tax-exempt general obligation bonds and less than 50 percent use of the statutory debt limit, $12.5 million in taxable general obligation bonds, receiving a 1.36% very competitive property tax rates compared to other rate on the non-taxable bonds and 1.62% rate on taxable bonds. Of cities in lowa (second lowest), one of the lowest the $42 million in bond revenues, nearly $37 million will be used to unemployment rates in the country (under 2 percent refund previously issued debt. The favorable interest rates secured at one point), the willingness of City employees to not through strong credit ratings will save the City$4.5 million in interest take a pay raise in fiscal year 2021, freezing vacant over the life of the current debt that is being refinanced. positions, and delaying some capital and equipment What does it mean for our community?These credit ratings projects and purchases. Now, with federal funding are affirmation of the sound fiscal management of the mayor and city from the American Rescue Plan and continued prudent council , put Dubuque in a strong position to capitalize on favorable financial planning by the mayor and city council, financial markets, borrow at low interest rates when necessary, and economic recovery efforts are under way. make critical investments in the community. � Fiscal Year 2022 � 1 City Budget The City of Dubuque's Fiscal Year (FY) 2022 budget runs from � July 1, 2021, through June 30, 2022. The budget has two primary components: the operating budget and the capital budget. The operating budget includes personnel costs and annual facility operating costs. It is funded primarily through local property and �� sales taxes. : � , ; � , , , The capital budget funds major improvements to City facilities and infrastructure. The capital budget is supported through multiple funding sources, including federal and state grants. • . � � • ' • ' � � � General Fund $68,885,005 $2,354,811 WaterFund $9,662,972 $3,279,268 Sanitary Sewer Funtl $11,488,643 $5,920,553 StormwaterFuntl $4,778,350 $3,810,977 Refuse $3,133,490 $847,751 Parking $2,826,227 $81,305 =1..v — The general fund is the operating fund for general City departments and their programs/services, such as public safety, culture & recreation, health & social services, and general government. � $ � How General Fund Mone is Spent Y � � i - � � � � � � � Public Safety (fire, police, ambulance services, 9-1-1 dispatch, animal control, building 42.3% inspections,crime prevention, emergency management,flood control, etc.) Culture & Recreation (AmeriCorps, arts and cultural affairs,civic center,conference center, library, 1� 90�0 marina, parks, recreation,etcJ General Government (city attorney and legal services,city clerk,city council, City Hall and general 14.1% buildings,city manager,finance, information services,etcJ Public Works (airport, maintenance of streets, bridges, and sidewalks; snow removal, g 40�0 street cleaning, street lighting,traffic control, etc.) Community & Economic (economic development, housing and community development, neighborhood 6.1% Development development, planning and zoning,etc.) Transfers Out (to funds otherthan General Fund) 6.1% Capital Projects (City infrastructure improvements or major equipment purchases) 3.1% Health & Social Services (community health, health regulation and inspection, human rights, etc.) 1.4% Debt Service (government capital projects,tax-increment financing[TIF]capital projects) 0.5% WHAT'S INCLUDED IN YOUR MONTHLY UTILITY BILL? ' . - ' . � ` � � � Curbside Collection Basic rate: $15.38/month 4th Lowest (trash and recycling) (2.6% increase from FY2021) (Highest,Ames, is 67.62% higher than Dubuque, � Curbside recycling collection is no extra charge. and average is 14.46% higher than Dubuque) Water Avg. household rate: $31.67/month* 2nd Lowest � (3.00% increase increase from FY2021) (Highest,West Des Moines, is 27.04% higher than � Dubuque, antl average is 10.85% higherthan Dubuque) ,� Stormwater Avg. household rate: $8.85/month** 2nd Highest � (6.76% increase from FY2021) (Highest, Des Moines, is 75.03% higher than Dubuque, ♦�� and average is 29.52% lowerthan Dubuque) � Sanitary Sewer Avg. household rate:$43.51/month*** 4th Highest � (3.00% increase from FY2021) (Highest,Ankeny, is 41.73% higher than Dubuque, antl average is 5.58% lowerthan Dubuque) *Average household rate based on 6,000 gallons per ,� ��,, month at$0.00528 pergallon �� WE WANT YOUR IDEAS! **Monthly rate for majority of Dubuque households based on l rf usage of one single family unit. Stormwater fees are based on the amount of impervious ground coverage on a property. Fees collected are only used for stormwater management activities Visit www.cityofdubuque.org/FY2022budget to such as the construction, maintenance and operation of the learn more about virtual community budget publicstormwatermanagementsystem. input sessions and the following tools: ***Average household rate based on 6,000 gallons per month 1.BalanCing ACt Budget Simulator at$0.00674 pergallon. The City's wastewater collection and 2.Taxpayer ReCeipt treatment system operates as a self-supporting enterprise fund which means that it is funded only with revenue from user fees. 3.Public Comments Form General Fund Reserve Projections 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% reserve. In Fiscal Year 2022, it is projected that the City will have 24.72% in reserve. � i i i - i i , $17,903,632 $17,903,632 $17,903,632 $17,903,632 $17,903,632 �� • •. � - � - -� •- - 24.72% 24.24°/a 23.76% 23.29% 22.84% I • � � � I - 1 � L7nv• J'nllt t' FY2021 Consolidated Rate of 32.29306 Property taxes are collected by the County and distributed monthly to the City of Dubuque and other taxing bodies. Property taxes are distributed among the Dubuque Community School District (45.8%), City of Dubuque (30.9%), Dubuque County � i � � (18.4%), Northeast lowa Community College (3%), and independent authorities* (2%). � . . Dubuque Property taxes are certified July 1 with the first half due on or before September 30 County and the second half due on or before March 31. For more information, contact the City �8•4'�° Assessor at 563-589-4416. � � NICC * "Independent authorities"includes City Assessor, County Hospital(Sunnycrest Manor), Dubuque � � � 3% . CountyAgriculture Extension, and the Tuberculosis and Brucellosis Eradication Fund. Independent Authorities 2% 1 � ' • � ' ' • � � � � . . . � . � � - �� nt;.< x I Total Debt (in millions) � }�-�� `� L _ .�,�� Debt is being issued each year, but more is being retired than issued. 'y �" � � . �� _� _ 300 y ¢ .. ��.= � �- � � f � — �� - �_ $254.8 �U, �a� �i—� �� i� � � -� � � $233.8 "� r _;'�- � _;r= � �� -��;y : 250 "'�[�� _: z ` ,�-__ — ( i i _—'--` . ; — ,��: � 200 � � ��. � ,�� - � 150 ; , ; _ $118.5 �-, �� . � ��„ �/�� . 100 I . � - � ,: -� FY2022 ��.- �:,�� } , � e�� . 50 Adopted j� � � ,�� _— .� �' � ; � FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 /y / � r �� ,� � � � Statutory Debt Limit Used (as of June 30) The City of Dubuque's use of debt can be 100 This chart shows the percentage of statutory debt limit in the Fiscal compared to many average homeowners Year(FY)2022 adopted budget.By FY2031,the City will be at 18%of who borrow to buy their home. The City has 80 the statutory debt limit. borrowed money at low interest rates to invest in infrastructure. Unlike the federal government, the City does not borrow money to cover � 60 operating expenses. � 46% a -- y 41% 40 ii 1 I - i FY2022 �' 18% . 1 • I I 20 Adopted # Project Description and Amount Outstanding � FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 1 Stormwater Improvements $76,527,913 2 Water& Resource Recovery Center $57,395,000 80 Percentage of Legal Debt Limit Utilized 3 Waterlmprovements (FY2020) �30,069,00a 4 Parking Improvements �� 64% s3�o $23,769,184 _� 51� 5 Downtown TIF Incentives/Improvements 60 53% $20,177,588 50 � 49� 49/ 46� 6 Sanitary Sewer Improvements ° 45% —� ao/ $13,301,860 d ao 7 TIF Rebates/Bonds to Businesses � a 30 27i $8,216,815 p2� p2� 8 Industrial Park Expansions zo $6,413,953 9 Caradco Building lowa Finance Authority Loan �o $3,470,309 0 10 Street Improvements* J+c,`� o�oeS e�Qot` �e�o° aQ�a`' o\ces �,,y`l'1 �Ja°e �,Fe�� Q,toeS Q,�o`t``' a``� $2,941,387 �'�� a.`'� Oa, �a a�Q e� O`�'` `'�J P °�\ �� TOtB� $242 283 011 � Vea �� J� �\oJ p�J r r J O �4,� Q *$162 million has been spent on street improvements from 1997-2021 CM027-052721