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Fiscal Year 2023 Budget Recommendation
City of Dubuque City Council Meeting Action Items # 8. Copyrighted February 21, 2022 ITEM TITLE: Fiscal Year 2023 Budget Recommendation SUMMARY: City Manager to provide the Fiscal Year 2023 Budget Recommendation. Documents will be made available before the February 21, 2022 meeting. All Fiscal Year 2023 recommended budget documents will be posted to the City's website on February 22, 2022. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description FY23 Budget Transmittal Message_Uploaded 2.18.22 FY23 Capital Improvement Program Message_Uploaded 2.18.22 FY23 Recommended Budget Presentation_Uploaded 2.21.22 Type City Manager Memo City Manager Memo Supporting Documentation Budget Message THE CITY OF D-�g UB E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2023 Recommended Budget DATE: February 18, 2022 Dubuque AII•America City MT10MI_ CNC I l-A( Ul: 2007*2012.2013 2017*2019 It is my goal that the Fiscal Year (FY) 2023 budget recommendation will reflect the City Vision and Mission Statements as established by the Mayor and City Council and be responsive to the goals and priorities established by the Mayor and City Council in their August 2021 annual goal setting session. To enable staff to finalize the recommended budget, the City Council first set the maximum property tax levy for FY2023 on February 16, 2022. As our community, nation, and the world continue to deal with the many implications of the ongoing COVID-19 pandemic, the City is responding to a myriad of other issues that impact City operations as well as Dubuque residents and stakeholders. In March 2020 when the world shut down, the City of Dubuque's employees rose to the occasion and met the moment. We are so fortunate that the people who have chosen to come to work for the City of Dubuque understand that empathy is the glue that holds together a civil society. As you can see in this chart, the City has climbed out of a decade's long hole achieving growth that few other communities in Iowa have experienced. To maintain this momentum, there must be continued investment. 100,000 98,000 96,000 94,000 92,000 90,000 88,000 86,000 84,000 82,000 Dubuque County Population Estimates m a m rn v+ a m rn m m m m a o 0 0 0 0 0 ei rl •i ri ei •i •i ri k •i ei 'i •i •i .-i ti •i ei .i •i •i ei H •i •i xi •i •i ri H N N N N N N N N N N N N N N N N N N N N N Budget Message COVID19-Related Cost Increases Supply chain issues and rising prices for fuel, vehicles, equipment, construction materials, electronics, and more are impacting the operating expenses of many City departments. Like the private sector, the City is also facing significant challenges in filling staff vacancies and new positions as Iowa's workforce crisis continues to manifest itself through record low unemployment and significant employee turnover. (Dubuque County's unemployment reached almost 13% in April 2020 during the COVID shutdown and was just 3.1 % in December 2021.) It's also important to note that our workforce is smaller. In November, Dubuque County's civilian labor force totaled 54,500, compared to 56,800 in November 2019. Clearly, it is an extremely competitive market for employees in all fields and levels. That is being reflected in increased wages for employees in businesses across the city. From November 2020 to November 2021, the average hourly wage in Dubuque increased from $27.52 to $28.07. From January 20210 to January 2020, Dubuque homes had an average increase in valuation of 17.3%, or 1.5% per year. During that same time frame, the average increase in valuation of industrial properties increased 4.8% (0.43% per year) and commercial/multi-residential properties increased 25.1 % (2.3 % per year). With this budget recommendation the next few years in Dubuque is going to see a significant investment in the following: 1. Community Safety 2. Roads and Infrastructure 3. Economic Development 4. Improved Customer Service 5. High Quality of Life in an Equitable Community 6. Identifying and Funding Important Initiatives to Support Employees This is evident in what is occurring in calendar year 2022 and what is being further proposed in the FY 2023 budget recommendation and the accompanying 5-year Capital Improvement Program. This will be accomplished while furthering the over arching goal of "Creating an Equitable Community (and organization) of Choice." Community Safety In the area of public safety, the City will add seven Firefighter positions, in addition to the two that have been added over the last few years, allowing for a third ambulance to be staffed seven days a week 24 hours a day, improving ambulance response times across the community. The additional positions will also decrease the demand for Firefighters to work overtime and give them a better chance to take vacation time, better supporting their mental and physical health. I am also recommending the implementation of an employee wellness program in the Fire Department. This further enhances a Fire Department that as an Insurance Services Office Class II Fire Department is ranked in the top 3% of the over 48,000 Fire departments in the United States. The Dubuque Fire Department is one of less than 300 Fire Departments internationally to receive accreditation by the Commission on Fire Accreditation International. It is no wonder that when asked to rate all of Dubuque's public services for 2020-2021, local CEOs, business owners, and top managers rated Dubuque's fire service #1 and its ambulance service #2. Using a scale with 1 being low and 7 high, the fire service scored an average of 6.36 and ambulance 6.19. I am further recommending that some of the part-time hours in the 911 Emergency Communications Center be replaced with the hours of another full-time position and that the city contract to maintain and review the quality assurance on calls. 2 Budget Message From a policy perspective, the City will invest hundreds of thousands of dollars to arm our Police Officers with tasers, a way to keep our Police Officers safe while minimizing the use of force needed to subdue a criminal and reducing the chance of serious injury to an aggressive suspect. The City will also continue the aggressive deployment of security cameras, which is being made easier as ImOn Communications has committed to deploying fiber optic cable across the entire Dubuque community over the next 3 years. The City will also invest well over $600,000 to significantly enhance our technological capabilities to integrate both the Police Department's body camera and car camera systems to enhance the value of these important tools. The City is also committed to aggressively filling the many vacancies in the Police Department caused by the hiring freeze during the economic crisis caused by the pandemic. Last year, the City created a new department, the Office of Shared Prosperity and Neighborhood Support, with three full-time and one part-time position and hired Anderson Sainci as the new Director. This year I am proposing the creation of a restructured division in the Leisure Services Department that will be led by Heather Satterly, the current AmeriCorps Director. This new division will be titled, Community Partnerships and Diversion, and consists of the two new full-time positions created in FY2022 focused on diversions from criminal court and identifying community service opportunities to avoid a criminal record. This division will continue to have responsibilities for AmeriCorps. Roads and Infrastructure Following the opening of the Southwest Arterial in 2020, the opening of the new Highway 20 interchange at Swiss Valley Road in 2021, the reconstruction of Chavenelle Road, the reconstruction of North Cascade Road, and the resurfacing of over 10 miles of streets by Public Works crews in 2021, the City will be further pursuing street improvements. In 2022 the Northwest Arterial from John F. Kennedy Road to Highway 20 will be resurfaced, with multiple intersection improvements, at a cost of over $8 million. The Iowa Department of Transportation is beginning to study the eventual full reconstruction of the intersection of Highway 20 and the Northwest Arterial, including the closing of the southern leg of the intersection, to greatly improve traffic flow. Dubuque County will be reconstructing sections of John Deere Road with major intersection improvements. Implementation of the East-West Corridor Study will continue with three new roundabouts constructed in the latter part of the 5 year Capital Improvement Program. The City will be submitting a $35 million federal infrastructure grant application to build a railroad overpass at 14t" Street and a reconstruction of Elm Street and 16t" Street with multiple intersection improvements all in the complete streets format. The Public Works Department will again have the resources available to resurface 10 miles of city streets, instead of the usual 5 miles. The City will be improving the Mississippi River bank in the South Port of Dubuque to better protect the sanitary sewer force main from river traffic accidents. The City will spend tens of millions of dollars to improve the Catfish Creek Sanitary Sewer Shed, replacing and upsizing much of the 70-year old sanitary sewer system and adding a major sanitary sewer lift station. This will allow the City to further eliminate polluting sanitary sewer overflows and be prepared for future growth to the West. The goal is to be eligible for tens of millions of dollars in federal infrastructure dollars to support this project. 3 Budget Message The City will also be spending tens of millions of dollars to significantly upgrade and extend the City water distribution system, creating greater redundancy and reliability and preparing for development in the Southwest Arterial corridor. This potentially will also be supported by federal infrastructure dollars. Economic Development The City will be investing in the downtown, the Central Avenue corridor, improved Schmitt Island access, and the west end industrial parks. The new Crossroads Industrial Park will include finishing a development plan and then implementing phase one of that plan to make about 30 acres ready for development. Much of the infrastructure investment described herein also relates to economic development. Improved Customer Service The enhancements I described related to the Police Department, the Fire Department, the Office Of Shared Prosperity, and the new Community Partnerships and Diversion division (including a new Secretary position) in Leisure Services are examples of service enhancements. However, another significant customer service enhancement is the move to automated collection of refuse carts. This will not only increase customer convenience but it will improve the appearance of neighborhoods. The City refuse collection employees are currently required to handle people's trash, exposing them to fleas, bedbugs, viruses, and germs. They are also required to exit and enter the vehicle almost 700 times each day, over 3,000 times a week, and over 170,000 times a year. This is even in the winter, risking slipping on the ice and snow and constantly battering their feet, ankles, knees, hips and back. The last time this was considered there was discussion of the need for a pilot program and that has been completed and these carts work in Dubuque as they do across the Midwest and beyond. Using American Rescue Plan funds this implementation will not add to the cost of the refuse collection service. High Quality of Life in an Equitable Community While there are numerous park and trail projects in this budget, the City will be furthering equity by providing a paid holiday for City employees in celebration of Juneteenth. Identifying and Funding Important Initiatives to Support Employees I have already described many of these important efforts. I am also recommending the addition of numerous new City positions in the organization to advance important initiatives and meet existing needs. The City Council has already approved through amendment two new positions in the Human Resources Department and a Project Manager position in Leisure Services. The FY2023 budget will recommend a new Assistant Fixed Base Operator position at the Dubuque Regional Airport, a new Secretary position in the City Clerk's Office, a full-time Climate Action Plan Coordinator in the Sustainability Office, the Teen Resiliency Corp, a Grant Analyst to support the Director of Strategic Partnerships, a full-time Utility Locator position in Engineering, additional Medical Director hours in the Fire Department, an additional Help Desk position and User Technology Specialist position in Information Services, changing from part-time to full- time a position at the Library working with the Maker Space, and an additional part-time Secretary in the Public Works Department. In addition, I am recommending funding the Fire Employee Health and Wellness Program. A third new position in the Information Services Department is a Chief Security Officer to help with cyber security issues. 0 Budget Message Opportunities for Grants and Forgivable Loans The Biden administration has successfully passed a large infrastructure bill, the Infrastructure Investment and Jobs Act and is also showing success at increasing funding to individual federal departments and grant programs. Also, the Biden administration has sent billions of dollars to the states for Governors to fund programs, some of which will lead to local government grant opportunities. This is creating a short window of time where communities across the country will be able to compete for grants and forgivable loans to fix age old problems and to create new growth opportunities. The challenge will be to get these projects ready to compete for these grants and to identify a source for matching dollars to be eligible for the grants. For instance, the Iowa Finance Authority now offers low interest State Revolving Funds (SRF) loans at very low interest rates. With the new programs, up to 50% of those loans will be forgivable. However, if the City is not willing to provide the 50% match, the City will be passing up the chance to complete major clean water projects at half price. CITY PROPERTY TAX RATE You will recall that in the current year (FY22 beginning July 1, 2021) City budget that was adopted by the Mayor and City Council in March 2021, there was a property tax rate reduction of 2.5%, which resulted in no increase in city property taxes for residential property, and a city property tax decrease for commercial property, industrial property, and multi -residential property. The change from FY2021 to FY2022 was as follows: Property Type Average Property Tax Cost Change from FY2021 % Property Tax Cost Change from FY2021 Residential No Change No Change Commercial $99.73 less 3.15% decrease Industrial $138.06 less 2.94% decrease Multi -Residential $144.99 less 7.64% decrease FY 2021 Property Tax Rate FY 2022 Property Tax Rate % Change $ 10.14 $ 9.89 2.5% Decrease 5 Budget Message Dubuque compares very favorably with the ten other cities in the State of Iowa with a population greater than 50,000 with having the lowest property tax rate. FY2022 City Property Tax late Comparison 20 f- #1 S-24 #11.74 1-87 34.6S PAS 10 5 0 # '# CIP i i * Highest -ranked city (Waterloo, 19.24) is 94.56% higher than Dubuque * Average of o#her 14 cities ( 14,95) is 51.21 highfr than Dubuque The above numbers relate to the current fiscal year, FY22. Now I will be moving to describe how my recommendation will affect FY23 and beyond. Ce Budget Message Dubuque would compare very favorably with these other cities when looking at debt in that with using only 41 % of the statutory debt limit if the FY23 Capital Improvement Program budget recommendation is adopted, Dubuque would rank 51" lowest of the eleven cities and below the 43% average of the other cities. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Percentage of Legal Debt Limit Utilized 62% 61% O\�05 Cj 54% 53% 51% 50% 43% 41% 33% - .0 °L` \a5 0y JQ' nj\ C� 1 �. °p P O J P 25% 20% 19% Gs� \fie °�,a G° 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. FY2023 • ,• $17,743,471 FY2024 FY2025 FY2026 $17,743,471 FY2027 $17,743,471 $17,743,471 $17,743,471 ' - - • ' - - 22.34% 21.90% 21.47% 21.05% 20.63% 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 2023 budget recommendation is that the property tax rate be further reduced from the current $9.8890 per thousand dollars assessed value to $9.7169, a 1.74% decrease in the property tax rate. 7 Budget Message 2036 VISION STATEMENT Dubuque 2036 is a sustainable and resilient city and an inclusive and equitable community where ALL are welcome. Dubuque 2036 has preserved our Masterpiece on the Mississippi, has a strong diverse economy and expanding connectivity. Our residents experience healthy living and active lifestyles; have choices of quality, affordable, livable neighborhoods; have an abundance of diverse, fun things to do; and are successfully and actively engaged in the community. CITY MISSION STATEMENT Dubuque city government is progressive and financially sound with residents receiving value for their tax dollars and achieving goals through partnerships. Dubuque city government's mission is to deliver excellent municipal services that support urban living; contribute to an equitable, sustainable city; plan for the community's future; and facilitate access to critical human services. CITY OF DUBUQUE GOALS 2026 *Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity *Vibrant Community: Healthy and Safe *Livable Neighborhoods and Housing: Great Place to Live *Financially Responsible, High -Performance City Organization: Sustainable, Equitable, and Effective Service Delivery *Sustainable Environment: Preserving and Enhancing Natural Resources *Partnership for a Better Dubuque: Building Our Community that is Viable, Livable, and Equitable *Diverse Arts, Culture, Parks, and Recreation Experiences and Activities *Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility POLICY AGENDA items are issues that need direction or a policy decision by the City Council, or need a major funding decision by the City Council, or issues that need City Council leadership in the community or with other governmental bodies. The policy agenda is divided into top priorities and high priorities. 2021-2023 POLICY AGENDA TOP PRIORITIES (in alphabetical order) Chaplain Schmitt Island Master Plan: Implementation & Phasing: Implementation & Phasing: As part of a commitment to create fun a variety of fun things to do for all, the City is part of a team lead by the Dubuque Racing Association who will implement the Chaplain Schmitt Island Master Plan. The Plan identifies a strategy to redevelop the island, beginning with the development of a Veterans Memorial and including developing/redeveloping recreational amenities, business development, self-sufficiency of Q Casino, and redevelopment of the 16t" St Corridor onto the island. This work will be done while focusing on the environmental integrity of the island with the US Army Corps of Engineers and the Iowa Department of Natural Resources. Funding support is included in the FY23 CIP for Chaplain Schmitt Island landscaping, trail development and access, and entrance signage. The renegotiated lease between the City and the DRA E:3 Budget Message includes creating a funding stream for the Schmitt Island Master Plan Implementation committee which receives one third of the annual DRA distribution. • City Information & Network Security: A robust strategy to ensure the security of City data and networks was identified as a priority for 2021-23. Key components of this priority include determining a future plan for a data center and other back up needs, staffing, developing a response to ransomware attacks, cyber-insurance, and protection of key financial and accounting systems. The Information Services department has submitted capital and operating budget requests to address this priority. Funding to complete a network security risk assessment, begin work on a data center, and purchase ransomware defense are included in the recommended CIP. Three staff positions are included in recommended improvement packages for the department, including a Chief Security Officer. • Equitable Poverty Prevention & Reduction Plan Implementation: In 2021, the City Council prioritized the creation of an Equitable Poverty Reduction & Prevention Plan. The Plan was delivered to Council by Public Works LLC, and lays out an implementation strategy to reduce poverty, especially in communities of color. In 2022, the Office of Shared Prosperity & Neighborhood Support was formed to coordinate the implementation of the plan. In FY23, the Division of Community Impact will be created in the Leisure Services department to continue the City's implementation responsibilities. This division will include two new positions recommended for funding in FY22, the Community Diversion & Prevention Coordinator and Community Service & Outreach Coordinator, as well as an Administrative Assistant recommended for FY23 funding. • Federal Infrastructure Program Preparation: The Biden administration has passed the unprecedented Infrastructure & Investment Jobs Act, which will create numerous opportunities to leverage federal and state funding to complete important projects in Dubuque. Those investments will lead with the priorities of environment and equity. Numerous recommendations in this budget include funding for us to plan for and design infrastructure, invest in grant writing services to assist staff to responding to the many opportunities available, and identify local match required in order to compete for grants. Among others, the operating budget includes funding for a Grant Analyst in the City Managers Office and funding for grant application services in Transportation Services and Economic Development. The City will also have a contract with a firm in Washington D.C. that specializes in identifying grant opportunities and then pursuing those grants. • Five Flags Center Direction: Providing direction regarding the future of Five Flags is a priority of the City Council. Regardless of ultimate decision, capital investments are needed in the current budget to be able to maintain the existing building. Recommended operating improvement packages include RFID ticket scanners and security cameras. Additional improvements are recommended in the CIP should the referendum fail. • Historic Building Rehabilitation/Preservation: Investment in our historic buildings, particularly historic housing stock, requires both public and private investments. It also M Budget Message requires the alignment of policies and funding program requirements. Recommended CIP's include Greater Downtown Housing Creation Grant Program, Central Ave Housing Forgivable Loans, Neighborhood Reinvestment Partnership, Homeowner Rehabilitation Program, Rental Dwelling Rehabilitation Program, Windows Replacement Program, Historic Preservation Revolving Loan Fund, and Historic Preservation Technical Assistance Program. • Sewer System Infrastructure Upgrade (including Catfish Creek Sanitary Sewer System): Critical infrastructure improvements are required to provide sewer system service to existing Dubuque residents and businesses as well as provide the infrastructure necessary for expansion. Recommended CIP's that will further this goal include the Old Mill Road Lift Station & Force Main, Granger Creek Lift Station Improvements, and Catfish Creek Sewershed Interceptor Sewer Improvements. HIGH PRIORITIES (in alphabetical order) • Bee Branch Watershed Project: Next Steps: Next steps in this 20+ year project include the following: additional green alley construction, North End storm sewer improvements, construction of a stormwater pumping station, and vision and development of the Blum site. Recommended funding includes Bee Branch Creek Gate & Pump Replacement, Flood Control Maintenance Facility, Green Alley Water Main Improvements, Permeable Pavement Bee Branch Railroad Sponsorship; Bee Branch Interceptor Sewer Connection, and Blum Site Utilization & City Service Delivery Study. • Childcare Initiative: Research supports that high -quality childcare improves children's school readiness and supports a strong workforce. Funding for staff to continue to participate in work with partners to solve childcare gaps is include in operating budgets. • Community Broadband Expansion: Significant work is underway via public -private partnerships to increase availability, access, and affordability of broadband, using an equity lens to ensure that all residents have access to the service that is critical for connecting to school, work, doctors, and more from home. Investments in the FY23 budget include an Engineering CIP for Broadband Acceleration & Universal Access, Fiber Optic Conduit - Misc, Fiber Infrastructure Management System, Citywide Fiber Cable Backbone Master Plan Implementation, INET Fiber Replacement Build Out, and Grandview Street Light Replacement. ImOn is in the process of doing a fiber build out to every home and business in Dubuque. • Complete Streets Concept Implementation: 16th St/Elm St/14th St Railroad Overpass Project: The City of Dubuque's Complete Streets policy is reviewed and incorporated into new construction and existing infrastructure improvements. Recommended CIP funding for 14th St Overpass Design would prepare us to seek competitive grants for the completion of this project and is a critical next step. • Comprehensive Parks Master Plan: Hiring a consultant to complete a comprehensive will assess existing park infrastructure and provide guidance on how to meet the demand for future recreational needs, including spaces and equipment for special 10 Budget Message interest. A Comprehensive Parks Master Plan CIP is recommended for funding in the FY23 CIP. • Imagine Dubuque Implementation: The City Council has adopted Imagine Dubuque 2037: A Call to Action, to guide their future investment decisions. Multiple recommended CIPs and improvement packages help to advance the vision identified through resident input in the plan. In addition to these construction investments, the Trail Planning, Connecting Downtown Destination, and South Port Redevelopment Concept Plan CIPs advance next steps necessary for the redevelopment of these areas and infrastructures. • West End Fire Station: As the Dubuque community expands to the west and south after the completion of the Southwest Arterial, it's anticipated that an additional fire station will be needed to protect residents and businesses. The Fire Station Expansion/ Relocation CIP begins preparation for this project, while the recommendation to hire seven additional firefighters in FY23 will prepare to staff that station, along with the two positions that have been added over the last few years. 11 THE C= OF DUB &E Masterpiece on the Mississippi Creating an Equitable Community of Choice A High -Performance Organization (and Community) that is Data -Driven and Outcome -Focused built on the four pillars of: Equity Compassion T h r Lih i n9 artnerships, Peop I e Budget Message Public Safety The goal of the City's approach to public safety is to make Dubuque the safest community possible with the understanding that community safety is not just about injury prevention and crime prevention; it is about increasing well-being and building a vibrant, engaged, and equitable community. Working to ensure residents experience an increased sense of well- being, a sustainable quality of life, a reduction in the numbers and cost of injuries, the preservation of income and assets, and improved perceptions of safety is a top priority for Dubuque city government. The Dubuque Police Department recently completed its compilation report of crimes for calendar year 2021. "Confirmed Shots Fired" is one of the many metrics tracked by the police department annually. In 2021, there were 21 instances of confirmed shots fired in Dubuque, an increase of 4 over 2020's total of 17 and down significantly from 2015's total of 33. When comparing Dubuque's "Part 1" crime totals for 2021 to 2015, Dubuque has had a 33.7% reduction in overall crime. The police department's annual crime report is shared with the FBI and includes "Part 1 Crimes" in two categories: Crimes Against Persons and Crimes Against Property. The total number of Crimes Against Persons in Dubuque decreased 15.4% from 2020 to 2021 to 226, including five murders, 955 sexual assaults, 22 robberies, and 104 aggravated assaults. While it is impossible to prevent some crimes from occurring, it is important to know that the Dubuque Police Department excels in solving crimes. In 2021, the Dubuque Police resolved almost 85% of all Crimes Against Persons committed in the city. The national average for 2019 (the most current on record via FBI data) was just 45.4%. The total number of Crimes Against Property in 2021 declined by one crime from 2020 to a total of 1,244, including 240 burglaries, 96 burglaries to motor vehicle, 823 thefts, and 85 thefts of motor vehicles. "Part I" Crimes for Calendar Years 2013-2021 Compiled by the Dubuque Police Department CY20 to CY21 CY19 Nat'l CY21 % Clearance Clearance Performance Measures CY13 CY14* CY15 CY16 CY17 CY18 CY19 CY20 CY21 Ava. Chanae Rate Rate Crimes Against Persons 208 220 265 243 203 190 190 267 226 224 -15.4 84.75% 45.50% Murder 0 0 5 1 2 1 0 1 5 2 500.0 80% Sexual Assault 38 61 80 98 90 75 91 105 95 81 -11.6 880/0 Robbery 32 20 27 26 16 29 14 26 22 24 -8.4 77% Aggravated Assault 138 139 153 118 95 85 85 135 104 117 -23.0 94% Crimes Against Property 1,791 1,662 1,953 1,875 1,667 1,543 1,319 1,245 1,244 1,589 0.0 89.90% 17.20% Burglary 431 416 548 420 331 299 205 219 240 345 9.6 83.75% Burglary to Motor Vehicle 231 168 106 144 157 145 88 148 96 143 -35.2 901/10 Theft 1,103 1.035 1,245 1,235 1.116 1,036 945 808 823 1.038 0.0 89.70% Theft of Motor Vehicle 26 43 54 76 63 63 81 70 85 62 21.4 96% Total 1,999 1,882 2,218 2,118 1,870 1,733 1,509 1,512 1,470 1,812 -0.1 *switch to new auhlic safety software Traffic/Security Camera System Traffic/Security Camera System in 2021, the City has installed 30 new cameras, along with 10.6 miles of conduit (over 6 miles more than 2020) and many miles of fiber that will allow for future camera installation. In addition to the new cameras, another 53 cameras were replaced because of newer technology or camera failure. These newer cameras have a higher resolution and Wide Dynamic Range feature which allows them to see better in all light 13 Budget Message conditions. Today, there are 710 Traffic/Security cameras recorded through the Traffic Operations Center in City Hall. The remaining 597 cameras are recorded at various servers throughout the City. The recommended budget has funding for additional cameras in the amount of $552,562 from FY 2023 through FY 2027. Additional funding is also allocated to the network of fiber optics that supports the camera system; INET Fiber Replacement, Traffic Signal Fiber Optics, Broadband Acceleration & Universal Access, Fiber Infrastructure Management System, Citywide Fiber Cable Backbone Master Plan, Fiber Optic Documentation & Maintenance, and Fiber Optic Conduit Miscellaneous ($3,817,000). Fiscal Year 2023 Budget Recommendation The goal of the Fiscal Year 2023 budget recommendation is to maintain the momentum of our community. The budget has been built around the vision, mission, goals, priorities and direction provided by the Mayor and City Council at the August 2021 goal setting session, with input from the community. A series of six public hearings will be held by the Mayor and City Council before adopting a final budget on March 29, 2022. The Fiscal Year 2023 budget year begins on July 1, 2022. While in August 2015 the Mayor and City Council directed staff to start reducing the amount of City debt, previous investments are still paying dividends. With the current City strategy of more pay as you go investments and the acceptance that some debt will be issued each year, with a goal to retire more debt each year than is issued, the City will continue to be able to leverage past investment and create new opportunities to improve quality of life for residents, create jobs and maintain infrastructure. In Fiscal year 2023 City staff has been able to meet that goal of retiring more debt than is being issued in every year for the seventh consecutive year. 14 Budget Message Retired Debt Versus New Debt (in Millions) $30 $25 $24.32 $24.73 $24.07 $23.36 $23.03 $23.14 $22.29 $23.02 $22.01 $21.73 $20.84 $20 $17.95 $19.03 $20.67 $22.08 ��� �� $18.05 $17.72 d I 1 1 $17.50 c 0 $15 75 $10 $5 $0 ti 00 LL LL L}L Lj_ $17.66 $17.80 $14.92 s O N CO It M N N N N N N LL LL LL LL LL LL Pr 6 ti 00 LL LL LL Retired Debt New Debt 00 -r.00 M8.00 W.00 W.00 O O N M M L}L LL L}L While accomplishing the Mayor and City Council priorities, the goal is to minimize the costs for the residents and businesses. Property Taxes The Fiscal Year 2023 recommended City property tax rate of $9.72 per thousand is a 1.74% decrease from Fiscal Year 2022, which follows a 2.51% decrease from Fiscal Year 2021, and a 1.81% decrease from Fiscal Year 2020. The average homeowner would see an increase in their property tax payment for the City portion of their property tax bill, a 2.96% ($22.74) increase. The average commercial property would see a 3.43% ($105.40) decrease, the average industrial property a 2.88% ($131.28) decrease, and the average multi -residential property a 7.20% ($126.11) decrease. Fiscal Year 2023 follows Fiscal Year 2022 where the average homeowner saw no change in their property tax payment for the city portion of their property tax bill. The average commercial property saw a 3.15% ($99.73) decrease, the average industrial property saw a 2.94% ($138.06) decrease, and the average multi -residential property saw a 7.64% ($144.99) decrease. Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill provides that beginning with the FY 2023 payment, the General Fund standing appropriation for commercial and industrial property tax replacement for cities and counties will be phased out in four or seven years, depending on how the tax base of the city or county grew relative to N CO } LL 15 Budget Message the rest of the state since FY 2014. Cities and counties where the tax base grew at a faster rate than the statewide average from FY 2014 through FY 2021 will have the backfill phased out over a four-year period from FY 2023 to FY 2026, while those that grew at a rate less than the statewide average will have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The City of Dubuque's tax base grew at a rate less than the statewide average and will have a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in FY 2023, the backfill will be eliminated over a seven year period. The following chart shows the impact on the average homeowner with the commercial and industrial backfill phased out over seven -years beginning in Fiscal Year 2023 and with the backfill remaining at 100%: Reduced Backfill Fiscal Year City Tax % Change $ Change 2023 $791.82 2.96 % $22.74 2024 $832.14 5.09 % $40.32 2025 $863.95 3.82 % $31.81 2026 $885.39 2.48 % $21.44 2027 $908.71 2.63%1 $23.32 100% Backfill City Tax % Change $ Change $788.38 2.51 % $19.30 $825.34 4.69 % $36.96 $853.94 3.47 % $28.60 $872.32 2.15%1 $18.38 $892.69 2.34 % $20.37 Fiscal Year 2023 City Property Tax Rate Comparison for Eleven Largest Iowa Cities Rank City Tax Rate 11 Waterloo (FY22) $19.2400 10 Council Bluffs (FY22) $18.2600 9 Des Moines (FY22) $17.5600 8 Davenport (FY23) $16.7800 7 Cedar Rapids (FY23) $16.0262 6 Iowa City (FY23) $15.7331 5 Sioux City (FY23) $15.4385 4 West Des Moines (FY23) $11.7740 3 Ankeny (FY23) $9.9500 2 Ames FY23 $9.8300 1 Dubuque (FY23) $9.7169 AVERAGE w/o Dubuque $15.06 *Includes the transit tax levy adopted by the Des Moines Area Regional Transit Authority for comparability. Dubuque has the LOWEST property tax rate as compared to the eleven largest cities in the state. The highest rate (Waterloo (FY22)) is 98.01% higher than Dubuque's rate, and the average is 54.98% higher than Dubuque. 16 Budget Message Fiscal Year 2023 Property Taxes per Capita Comparison for Eleven Largest Iowa Cities Rank City Taxes Per Capita 11 West Des Moines $1,153.62 10 Council Bluffs $966.86 9 Iowa City $919.78 8 Cedar Rapids $909.99 7 Davenport $856.56 6 Des Moines $829.17 5 Waterloo $780.23 4 Ankeny $707.58 3 Sioux City $682.25 2 Dubuque $514.83 1 Ames $511.57 AVERAGE w/o Dubuque $831.76 Dubuque has the SECOND LOWEST taxes per capita as compared to the eleven largest cities in the state. The highest (West Des Moines) is 125.51% higher than Dubuque's taxes per capita, and the average is 62.59% higher than Dubuque. The projected Fiscal Year 2023 property tax asking of $26,205,437 is unchanged from Fiscal Year 2022. The total Fiscal Year 2023 budget recommendation ($221,266,161) is 15.81 % more than the current budget year (Fiscal Year 2022). The Fiscal Year 2023 operating budget recommendation is $152,003,749 and the Fiscal Year 2023 Capital Improvement Program budget recommendation is $69,262,412. After the local option sales tax was passed by referendum in 1988 with 50% of revenue going to property tax relief, the average property tax classification over that 30 years has seen the following results: Prior to Sales Tax FY 1988 FY 2023 $ Difference % Difference Property Tax Rate $ 14.5819 $ 9.7169 -$4.87 -33.40% Average Residential Payment $ 512.38 $ 791.82 +$279.44 +54.54% Average Commercial Payment $ 2,490.61 $2,964.17 +$473.56 +19.01 % Average Industrial Property $ 6,975.00 $4,424.83 -$2,550.17 -36.56% Average Multi -Residential Property (FY17) $ 2,472.99 $1,625.55 -$847.44 -34.27% Prior to the pandemic, Dubuque residents saw a steady increase in their median household income over the last 10 years (2.4% annual average), exceeding the national growth rate (1.93% annual average), the growth rate of the State of Iowa (2.16%), and the average growth rate of the other large cities in the State of Iowa (1.88%). 17 Budget Message 10-Year Average Annual Growth Rate: Median Household Income 2010-2019 (ACS) 3.00% 2.65% 2.50 % 2.37% — 2.40% 2.00% 1.86% 1.88% 1.90% 1.94% - 1.73% 1.78% 1.79% 1.57% 1.50 % - 1.20% 1.00 % 0 0.50% 0.00 r`kgy.A Q gp eo�d- v �eyw ,oia Go 5 P From 2010 to 2019, Dubuque had the 2nd-highest median household income annual growth rate of the 11 largest cities in Iowa. Dubuque's growth rate is 28% higher than the average of the other 10 cities and 99% higher than the lowest, Iowa City. A comparison of median household incomes among Iowa's largest cities (excluding suburbs Ankey and West Des Moines) shows that Dubuque's median household income of $54,234 is 7.4 higher than the lowest city (Iowa City) 1.4% higher than the average of the other cities. It is 11.6% lower than the Iowa average and 24.5% below the national average. 18 Budget Message Median Household Income (in 2019 dollars. Source: US Census) $80,000 $70,000 $67,521 $60,523 $60,000 $56,774 $57,374 $50,497 $50,528 $51,847 $53,424 $53,478 $53,524 $53,859 $54,234 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Iowa City Ames Waterloo Sioux City Avg Wo Council Des Dubuque Cedar Davenport State of USA Dubuque Bluffs Moines Rapids Iowa The graph below shows Dubuque's placement in the upper left quadrant, the preferred quadrant showing a lower tax rate and higher median household income. Tax Rate and Median Household Income $59,000 $57,000 $55,000 Dubuque(FY23) • $53,000 $51,000 Ames(FY23) • $49,000 $47,000 $45,000 $8.00 $10.00 • Davenport(FY23) • Cedar Rapids(FY23) Avg w/o Dubuque • Des Moines(FY23) Sioux City(FY23) Council Bluffs(FY22) • Waterloo(FY22) • Iowa City(FY23) $12.00 $14.00 $16.00 $18.00 $20.00 19 Budget Message Single Family Homes Constructed: 5-Year Analysis DUBUQUE ASBURY DYERSVILLE PEOSTA CASCADE EPWORTH FARLEY UNINC.DUBUQUE UNINC.IODAVIESS GRANTCOUNTY COUNTY COUNTY CY 2017 CY 2018 x CY 2019 CY 2020 CY 2021 4 Fiscal Year 2023 Recommended Personnel Changes The Fiscal Year 2023 budget increases the full-time equivalents by 29.00 FTE, decreases part- time equivalents by 6.37 FTE, and increases seasonal equivalents by 0.42 FTE, resulting in a net increase of 23.05 full-time equivalents. The following chart summarizes the personnel changes recommended in Fiscal Year 2023: Department Position Type FY 2023 Cost (Savings) Includes Benefits FTE Airport Assistant FBO Supervisor Full -Time $ 76,893 1.00 Airport Line Service Worker Part -Time $ (13,415) -0.39 AmeriCorps Community Diversion and Prevention Coordinator Full -Time $ 92,051 1.00 AmeriCorps Secretary Full -Time $ 60,753 1.00 AmeriCorps AmeriCorps Coordinator Part -Time $ 6,774 0.12 City Clerk Secretary Full -Time $ 60,375 1.00 City Manager Climate Action Coordinator Full -Time $ 81,609 1.00 City Manager Grant Analyst Part -Time $ 72,999 1.00 City Manager Data Analyst Full -Time $ (76,340) -1.00 City Manager Secretary Part -Time $ (32,207) -0.66 Conference Center Leisure Services Manager Full -Time $ 27,484 0.15 Emergency Communications Public Safety Dispatcher Full -Time $ 76,902 1.00 Emergency Communications Public Safety Dispatcher Part -Time $ 44,960 -0.75 Engineering Utility Locator Full -Time $ 73,617 1.00 Engineering Utility Locator Part -Time $ (35,463) -0.73 Engineering Business Administration Intern Seasonal $ 17,639 0.50 Engineering OSHA Intern Seasonal $ 9,107 0.25 Engineering Broadband Intern Seasonal $ 9,107 0.25 Finance Finance Intern Seasonal $ 8,417 0.25 Fire Firefighter Full -Time $ 414,740 4.00 Fire Firefighter Full -Time $ 275,055 3.00 Housing Grant Program Manager Full -Time $ 96,403 1.00 Housing Family Self -Sufficiency Coordinator Full -Time $ (67,431) -1.00 Housing Confidential Account Clerk Full -Time $ 62,054 1.00 20 Budget Message Department Position Type FY 2023 Cost (Savings) Includes Benefits FTE Human Resources Employee Relations Manager Full -Time $ 91,715 1.00 Human Resources HR Benefits and Payroll Specialist Full -Time $ 66,015 1.00 Human Resources Scanning Clerk - Temporary Seasonal $ (21,142) -0.50 Information Services Help Desk Technical Support Full -Time $ 67,431 1.00 Information Services User Technology Specialist Full -Time $ 73,617 1.00 Information Services Chief Security Officer Full -Time $ 113,456 1.00 Library Maker Space Assistant Full -Time $ 81,778 1.00 Library Library Assistant Part -Time $ (54,962) -1.00 Library Marketing Coordinator Part -Time -0.50 Office of Equity and Human Rights Community Engagement Coordinator Full -Time $ (98,504) -1.00 Office of Shared Prosperity Community Engagement Coordinator Full -Time $ 98,504 1.00 Office of Shared Prosperity Data Analyst Full -Time $ 76,340 1.00 Office of Shared Prosperity Secretary Part -Time $ 32,207 0.66 Parks Leisure Services Manager Full -Time $ (27,484) -0.15 Parks Project Manager Full -Time $ 119,949 1.00 Police Police Patrol Officer Full -Time 1.00 Police Community Diversion and Prevention Coordinator Full -Time $ (92,051) -1.00 Police Community Resource Officer Seasonal 2.19 Public Works Yard Waste and Snow & Ice Control Full -Time $ 74,703 1.00 Public Works Laborer Seasonal $ (51,323) -1.77 Public Works Secretary Part -Time $ 30,811 0.67 Public Works Landfill Equipment Operator Full -Time $ 73,201 1.00 Public Works Landfill Equipment Operator Seasonal $ (28,916) -0.75 Transportation Bus Operator Full -Time $ 253,295 4.00 Transportation Bus Operator Part -Time $ (218,855) -4.44 Transportation Cashier Part -Time I $ 210,608 0.65 FY 2023 Total Is 2,212,476 23.05 Since 1981, the City has minimized the number of positions added. The recommended Fiscal Year 2023 staffing changes means the City increased its full-time workforce by 5.65% since 1981. This was achieved in spite of all the new services that have been added in that time period including staff -intense activities like recycling and combined county -wide public safety dispatching. Also, the number of sworn Police Officer positions has increased by 37 over that time period. 21 Budget Message Debt The City will issue $105,580,538 in new debt in the Recommended 5-year CIP, mostly for fire truck and pumper replacements, fire station expansion, road improvements, sanitary sewer improvements, additional downtown parking, and maintenance of Five Flags. Project FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Total Build -out of 2nd floor Old Engine House (18th & Central) $ 193,000 $ — $ — $ — $ — $ 193,000 Fire Station Expansion/ Relocation $ — $ — $ — $ 887,890 $ 3,449,550 $ 4,337,440 Ladder Truck & Pumper Replacement/Expansion $ — $ — $ — $ 510,000 $ — $ 510,000 Ambulance Replacement/ Expansion $ 244,810 $ — $ — $ — $ — $ 244,810 HVAC Replacement at Fire Headquarters 11 West 9th Street. $ 175,748 $ 365,697 $ — $ — $ — $ 541,445 Mystique Community Ice Center Settling Remediation and Building Improvements $ 6,300,000 $ — $ — $ — $ — $ 6,300,000 Five Flags GDTIF $ 600,000 $ 1,709,322 $ 2,500,000 $ — $ — $ 4,809,322 Parking Ramp Major Maintenance Repairs $ 245,000 $ — $ — $ — $ — $ 245,000 New Downtown Parking Ramp - GO Debt $ 2,348,822 $ 9,078,000 $ 6,000,000 $ — $ — $ 17,426,822 Smart Parking System - GO Debt $ 40,696 $ — $ 15,366 $ 173,000 $ — $ 229,062 14th Overpass Design - GO Debt $ — $ 627,000 $ — $ — $ — $ 627,000 Solid Waste Collection Vehicles - GO Debt $ — $ 55,000 $ 214,269 $ 106,000 $ — $ 375,269 Sanitary Sewer Projects $ 5,051,897 $ 8,839,852 $13,346,822 $17,047,271 $ — $ 44,285,842 Stormwater Projects $ 2,600,000 1 $ 2,600,000 Water Projects $ — $ — $ — $ 4,297,047 1$18,558,479 $ 22,855,526 Total New Debt $17,799,973 $20,674,871 $22,076,457 $23,021,208 1$22,008,029 1$105,580,538 The City will retire $108,329,563 of existing debt over the next five -years (FY23-FY27). The following chart shows the net reduction of debt from Fiscal Year 2023 - Fiscal Year 2027: Project FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Total New Debt $17,799,973 $20,674,871 $22,076,457 $23,021,208 $22,008,029 $105,580,538 Retired Debt $-19,032,789 $-20,843,281 $-22,292,530 $-23,025,346 $-23,135,617 $-108,329,563 Net Debt Reduction 1 $-1,232,816 $-168,410 $-216,0731 $4,138 $-1,127,588 $-2,749,025 There was a 7.32% increase in assessed value effective January 1, 2021, which is the assessment the Fiscal Year 2023 statutory debt limit is based on. The statutory debt limit effective June 30, 2023 is $259,297,290. The City will be at 41.06% of statutory debt limit by June 30, 2023. In FY 17 the City was at 86.13% of statutory debt limit, so 41.06% in Fiscal Year 2023 is a 45.07% decrease in use of the statutory debt limit. 22 Budget Message The ten year history of the City's use of the statutory debt limit is as follows: FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 84.31 % 83.87% 89.89% 1 86.13% 69.45% 63.41 % 56.32% 50.22% 46.53% 1 43.63% The five year projection of the City's use of the statutory debt limit from Fiscal Year 2023-2027 including all planned debt issuances subject to the statutory limit and assuming a 2% growth in the City's assessed valuation beginning in Fiscal Year 2023 is as follows: FY 23 FY 24 FY 25 FY 26 FY 27 41.06% 40.98% 39.43% 35.19% 31.98% The following chart shows Dubuque's relative position pertaining to use of the statutory debt limit for Fiscal Year 2023 compared to the other cities in Iowa for Fiscal Year 2021 with a population over 50,000: Fiscal Year 2021 Legal Debt Limit Comparison for Eleven Largest Iowa Cities Rank City Legal Debt Limit (5%) Statutory Debt Outstanding Percentage of Legal Debt Limit Utilized 11 Des Moines $ 647,212,313 $ 402,520,000 62.19 % 10 Sioux City $ 265,639,656 $ 161,734,999 60.89 % 9 Waterloo $ 203,066,548 $ 109,313,513 53.83 % 8 Davenport $ 383,418,646 $ 203,845,000 53.17 % 7 Cedar Rapids 609,295,697 308,940,000 50.70 7-6 6 W. Des Moines $ 450,309,928 $ 225,845,000 50.15 % 5 Dubuque (FY23) $ 259,297,290 $ 106,455,755 41.06 % 4 Ankeny $ 337,864,308 $ 111,645,000 33.04 % 3 JAmes $ 251,339,811 $ 62,654,999 24.93 % 2 Council Bluffs $ 274,870,338 $ 53,728,829 19.55 % 1 Iowa City $ 342,894,916 $ 66,740,000 19.46 Average w/o Dubuque 42.79 Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in Iowa with a population over 50,000 and Dubuque is below the average of the other Cities. 23 Budget Message Percent of Legal Debt Limit Utilized 80% 60% 40% 20% 0% `°01 G\nA �G\b\� 5 P�eS p-�e��y'3� O��pp� o\�e5 �a5 oP ��o° G��� y�o\�e5 G°v pp° ° V ale � P The total City indebtedness as of June 30, 2023, is projected to be 251,505,826 (41.06% of statutory debt limit). The total City indebtedness as of June 30, 2015, was $295,561,181 (69.45% of statutory debt limit). The City is projected to have $44,055,355 less in debt as of June 30, 2023. The combination of reduced debt and increased utility rates partially reflects the movement to a more "pay as you go" strategy, which could lead to larger tax and fee increases than with the use of debt. The following chart shows the amount of retired debt as compared to new debt. The new debt includes new debt issuances as well as draw downs on existing state revolving fund loans: 24 Budget Message $30 $25 1.K11 $15 G,'� $5 $0 Retired Debt Versus New Debt (in Millions) $24.32 $24.73 $24.07 (D f- CO M O — N M It Ln O r- 00 O O CV N N N N N N N N N N M M M } } } } } } } } } } } } } } } } } LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL Retired Debt 0 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. Statutory Debt and Total Debt 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 2023 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 Iowa. In Fiscal Year 2015, the City of Dubuque used 90% of the statutory debt limit. In this budget recommendation, the Mayor and City Council are currently reviewing for Fiscal Year 2023, the use of the statutory debt limit would be 41%, and by the end of the recommended 5-Year Capital Improvement Program (CIP) budget in Fiscal Year 2027, the City of Dubuque would be at 32% of the statutory debt limit. Projections out 10 years to Fiscal Year 2032 show the City of Dubuque at 15% 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. 25 Budget Message Statutory Debt Limit Used (as of June 30th) 100% 90% o _ 87 /o 75% 0% 63% 56% 50% 44 47% o 50% /0 41 % 41 % 39% 35% 32% 28% 24% 21% 25% 18% 15% -n m m m m m m m m m m m m m m m m CA M V 00 O N W CA 07 V CO to O j N 4h- FY23 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 $253.86 million (32% of the statutory debt limit) and the projection is to be at $146.46 million (18% of statutory debt limit) within 10 years. Total Debt (In Millions) $324 $302.3 $297 $290.1 $295.5 $282.0 $279.9 $285.7 265. $267.4 $270 $274.7 $255.9 $250.6 $251.5 $252.4 $253.2 $254.2 $253.9 $264.5 c $243 $252.2 $251.7 31.3 C $244.3 $241.4 $216 $226.2 85.6 $189 $162 $1 $135 J— $146.5 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY16 Adopted --lt— FY23 Recommended 26 Budget Message General Fund Reserves 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 "AX rated cities. In May 2021, Moody's Investor Services upgraded the City's Water Enterprise's outstanding revenue bonds from Al to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. In October 2016, Moody's Investors Service upgraded the rating on $18 million in City of Dubuque bonds issued to support the Bee Branch Watershed Flood Mitigation Project from A3 to A2. These credit ratings are affirmation of the sound fiscal management of the mayor and city council, put Dubuque in a strong position to capitalize on favorable financial markets, borrow at low interest rate when necessary, and make critical investments in the community. Reserve Fiscal Year (As percent of General Fund changeFund Reason for from previous Fiscal Year 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. Increase due to American Rescue Plan Act funds received ($13.2 FY 2021 40.72% million), frozen positions and capital projects through Feb 2021. In May 2021, the City sold $29.5 million in tax-exempt general obligation bonds and $12.5 million in taxable general obligation bonds, receiving a 1.36% rate on the non-taxable bonds and 1.62% rate on the taxable bonds. In July 2021, the City sold $3.7 million in water revenue refunding bonds, receiving a 1.04% rate. Of the $45.7 million in bond revenues, nearly $41 million was used to refund previously issued debt. The favorable interest rates secured through strong credit ratings will save the City nearly $5 million in interest over the life of the current debt that is being refinanced. 27 Budget Message Fund Reserve as a Percent of General Fund Revenue 50 45 40 35 c 30 L 0- 25 20 15 10 40.72% 31.24% 29.06% FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 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. After all planned expenditures in FY 2022, the City of Dubuque will have a general fund reserve of 32.47% of general fund expenses as computed by the methodology adopted in the City's general fund reserve policy on a cash basis or 22.78% 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 $22,367,646 on June 30, 2022 as compared to the general fund reserve balance on an accrual basis of $17,743,471 as computed by Moody's Investors Service.The general fund reserve balance on an accrual basis exceeds 22% in FY 2022, 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% reserve. FY2023 FY2024 FY2025 FY2026 FY2027 $17,743,471 • ,• $17,743,471 M. $17,743,471 $17,743,471 $17,743,471 ' - . • 22.34% 21.90% 21.47% 21.05% 20.63% 10:3 Budget Message State Revolving Fund Sponsorship Projects and Green Project Loans The City uses State Revolving Fund (SRF) loans for water and sanitary sewer projects whenever possible because of the very low annual interest rate of 1.75% with an annual servicing fee of 0.25%. In 2009, legislation was passed in Iowa that allows water utilities that issue debt through the Clean Water State Revolving Fund Program to sponsor and help finance other water quality improvement (CWSRF) projects within or outside its service limits. This new funding mechanism, called Water Resource Restoration Sponsored Projects, will provide cities, counties, local watershed organizations, watershed management authorities, county conservation boards, and soil and water conservation districts a funding source to construct improvements throughout a watershed that keep sediment, nutrients, chemicals and other pollutants out of streams and lakes. Repayment of a standard Clean Water SRF (CWSRF) loan includes the repayment of the original loan amount, the principal, and the cost to finance the loan, interest, and fees. On a CWSRF loan with a sponsored project, the financing costs are reduced by the amount of the cost of the sponsored project improvements. Figure 1 shows a comparison between a standard CWSRF loan and a CWSRF loan with a sponsorship project. As shown, the total cost to the utility (the total of loan repayments) remains unchanged as the cost of funding for the sponsorship project is offset by a reduction in loan financing costs. In essence, two water quality projects are completed for the price of one. i Funding for Sponsorship Project cu E LA Loan Financing Costs a � (Interest &Fees) c 0 CWSRF Project Loan Principal 0 CQ O F `S�Q soar O�GV C , g0eLt 0,091L& Figure 1. Loan repayment comparison between a standard CWSRF loan and a CWSRF loan with a sponsorship project. After three years of the State of Iowa being unsuccessful in completing one of these modified loans, the City of Dubuque had the first successful application for the state when, in April 2013, the City was awarded $9.4 million of the interest paid on the Water and Resource Recovery Center to be used to reconstruct over 70 Green Alleys in the Bee Branch Watershed. The principal for the Water & Resource Recovery Center Upgrade was increased from $64,885,000 to $75,145,579 and the interest rate plus annual servicing fee was decreased from 3.25% to 2.00% to add the Green Alley sponsorship project. This 29 Budget Message reduction allowed for increased proceeds and resulted in a true interest cost of 1.96% and gross borrowing savings of $11.4 million. The Federal Fiscal Years 2010, 2011, and 2012 State Revolving Fund capitalization grants included requirements for certain percentages of the funds to be allocated for green projects. Each green infrastructure project receives a portion of loan forgiveness not to exceed 30%. In June 2015, the City of Dubuque Upper Bee Branch Creek Restoration Project (Upper Bee Branch Project) qualified for a Green Project Loan from the CWSRF Program in the amount of $29,541,000. The loan includes a principal forgiveness provision. The amount of the loan to be forgiven is 20% of the total loan disbursements made under the loan agreement. The amount of the loan that was forgiven in June 2020 was $5,908,200. The actual true interest cost for total funds received was not the 2.00% borrowing rate (1.75% interest and 0.25% administrative fee), but just 0.07% after reflecting the receipt of interest free funds (forgiven portion). Then, in August 2017, the City was awarded $1.4 million in funding for improvements with the Catfish Creek Watershed through the State of Iowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Upper Bee Branch Creek Restoration Project. The funding for the $1.4 million in improvements will come from the interest payments on the City's Upper Bee Branch SRF loan. The Upper Bee Branch Creek SRF loan principal was increased to $30,941,000 and the interest rate plus the annual servicing fee was reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were $1.38 million less than the original loan. In May 2018, the City was awarded $1.0 million in funding for pervious green alley improvements with the Bee Branch Creek and Catfish Creek Watersheds through the State of Iowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Upper Bee Branch Creek Railroad Culverts Project. The funding for the $1.0 million in improvements will come from the interest payments on the City's Upper Bee Branch Railroad Culvert SRF loan. The Upper Bee Branch Creek Railroad Culvert SRF loan principal was increased to $17,387,000 and the interest rate plus the annual servicing fee was reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were $1.05 million less than the original loan. In February 2019, the City was awarded $276,300 in funding for Eagle Point Park Environmental Restoration through the State of Iowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Kerper Boulevard Sanitary Sewer Project. The funding for the $276,300 in improvements will come from the interest payments on the City's Kerper Boulevard Sanitary Sewer SRF loan. The Iowa Finance Authority now requires that sponsorship projects are included in the initial loan amount so that the repayment schedule does not have to be adjusted. On a gross basis, the borrowing costs for the new loan were $278,000 less than if there was not a sponsorship project included. City Utilities The water rate increase recommendation is 5.00%, the sanitary sewer rate increase recommendation is 9.00%, and the solid waste collection recommendation is no increase. 30 Budget Message The following are the utility rate comparisons for other cities in the State of Iowa: RATES AND COMPARISONS Water Rate Comparison for Largest Iowa Cities with Water Softening Rank City Water Rate (6,000 Gallons/ residence avg.) 7 West Des Moines (FY23) $41.67 6 Des Moines (FY23) $37.76 5 Cedar Rapids (FY23) $37.07 4 Iowa City (FY23) $35.01 3 Ames (FY23) $34.42 2 Dubuque (FY23) $33.18 1 Council Bluffs (FY23) $29.67 Average w/o Dubuque $35.93 Dubuque's water is some of the best in the world with the SECOND LOWEST rate! The highest rate (West Des Moines (FY23)) is 25.59% higher than Dubuque's rate, and the average is 8.30% higher than Dubuque. Sanitary Sewer Rate Comparison for Eleven Largest Iowa Cities Rank City Sanitary Sewer Rate (Based on 6,000 Gallons/month) 11 Davenport (FY23) $66.75 10 Ankeny (FY22) $57.79 9 Des Moines (FY23) $53.22 8 Dubuque (FY23) $47.42 7 West Des Moines (FY22) $41.68 6 Sioux City (FY22) $40.02 5 Iowa City (FY22) $36.08 4 Ames (FY22) $35.26 3 Cedar Rapids (FY22) $32.51 2 Council Bluffs (FY23) $31.94 1 Waterloo (FY22) $31.64 Average w/o Dubuque $42.69 Dubuque has the EIGHTH LOWEST rate. The highest rate (Ankeny (FY22)) is 40.76% higher than Dubuque's rate, and the average is 9.98% lower than Dubuque. 31 Budget Message Solid Waste Collection Rate Comparison for Eleven Largest Iowa Cities Rank City Solid Waste Monthly Rate 11 Cedar Rapids (FY22) $22.53 10 Council Bluffs (FY22) $20.00 9 Ames (FY22) $16.50 8 Sioux City (FY22) $15.55 7 Dubuque (FY23) $15.38 6 Des Moines (FY22) $14.56 5 Waterloo (FY22) $14.00 4 Davenport (FY22) $13.81 3 West Des Moines (FY22) $12.56 2 Ankeny (FY22) $12.45 1 Iowa City (FY22) $12.00 Average w/o Dubuque 1 $15.40 Dubuque has the SEVENTH LOWEST rate. The highest rate (Cedar Rapids (FY22)) is 46.49% higher than Dubuque's rate, and the average is 0.10% higher than Dubuque. Stormwater Rate Comparison for the Largest Iowa Cities with Stormwater Fees Rank City Stormwater Rate 10 Des Moines (FY23) $15.49 9 Dubuque (FY23) $9.00 8 Cedar Rapids (FY23) $7.62 7 West Des Moines (FY23) $6.90 6 Ankeny (FY23) $6.50 5 Ames (FY23) $5.20 4 Iowa City (FY23) $5.00 3 Waterloo (FY23) $4.75 2 Davenport (FY23) $3.06 1 1 Sioux City (FY23) $2.80 Average w/o Dubuque $6.37 Dubuque has the second highest rate. The highest rate (Des Moines (FY23)) is 72.11% higher than Dubuque's rate, and the average is 29.23% lower than Dubuque. Improvement Packages There were 159 improvement level decision packages requested in Fiscal Year 2023, of which 128 are being recommended for funding. This budget recommendation funds $2,106,011 for annually recurring and $907,872 for non -recurring improvement packages in the General Fund. FY2022 General Fund operating budget savings and increased revenue over projections are being used to fund the non -recurring improvement packages in the General Fund. the non- recurring improvement packages recommended. The remaining improvement packages recommended for funding from non -property tax support total $1,658,228. 32 Budget Message A portion of the recommended recurring improvement packages include new positions: • Full-time Assistant FBO Supervisor at the Airport to ensure supervisory coverage for the Fixed Base Operations (FBO). • Full -Time Secretary in AmeriCorps to assist as part of the creation of the new division. • Full time Secretary in City Clerk's Office to serve as the main point of contact for all public inquiries. • Full -Time Climate Action Coordinator in the City Manager's Office dedicated to implementing the 50% by 2030 Community Action and Resiliency Plan. • Full -Time Grant Analyst in the City Manager's Office to address the continued need for grant management. • Full -Time Public Safety Dispatcher in Emergency Communications to cover forty hours of current part-time hours. • Full -Time Utility Locator in Engineering to address the growing demand for locating buried City utilities. • Seasonal Business Administration Intern in Engineering to assist the administrative staff with an ever growing workload. • Seasonal OSHA Intern in Engineering to update and customize the current department Construction Safety Manual. • Seasonal Broadband Intern in Engineering to assist Traffic Operations Center staff with populating a database of broadband infrastructure. • Seasonal Finance Intern to assist with large projects and ongoing work. • Four Full -Time Firefighters to increase the number of personnel per shift, resulting in the ability to increase minimum staffing to 24 personnel each day, thereby staffing a third full-time ambulance crew. • Three Full -Time Firefighters to increase the available personnel to cover various leave requirements and help reduce the need for overtime. • Full -Time Confidential Account Clerk in Housing to help with administrative duties of the department. • Full -Time Help Desk Technical Support in Information Services to provide assistance for the implementation of e-mail for additional users, help in implementation of MFA for all, help address the need for backlog of service request tickets, aid in monthly on -boarding for technology additional WebQA user and backend support. • Full -Time User Technology Specialist in Information Services to provide ERP support. • Full -Time Chief Security Officer in Information Services to help improve cybersecurity, manage the on -going complexity of threats, and manage the network infrastructure (fiber, switches, routers). • Full -Time maker Space Assistance at the Library to provide full-time coverage for Maker's Space. • Full -Time Patrol Officer in Police added as part of the 20 officers by 2022. • Seasonal Community Resource Officers in Police to help continue the success the program has had in both the value to the public and as a recruiting tool for the department. • Full -Time Sanitation Driver in Public Works added due to the increase i lane miles to plow and employee turnover rate. • Part -Time Secretary in Public Works added to help with coverage issues during lunch, vacation, and sick leave. • Full -Time Landfill Equipment Operator in Public Works to support operations in the Agency's Regional Collection Center. 33 Budget Message • Four Full -Time Bus Operators in Transportation Services to minimize employee turnover, associated cost, and offer more consistency in schedules for citizens. State -Funded Backfill on Commercial and Industrial Property Tax Commercial and Industrial property taxpayers previously were taxed at 100% of assessed value; however, due to property tax reform legislation in Fiscal Year 2013, a 95% rollback factor was applied in Fiscal Year 2015 and a 90% rollback factor will be applied in Fiscal Year 2016 and each year beyond. The State of Iowa committed to backfill the loss in property tax revenue from the rollback and the backfill 100% in Fiscal Year 2015 through Fiscal Year 2017 and then the backfill was capped at the Fiscal Year 2017 level in Fiscal Year 2018 and beyond. Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill provides that beginning with the FY 2023 payment, the General Fund standing appropriation for commercial and industrial property tax replacement for cities and counties will be phased out in four or seven years, depending on how the tax base of the city or county grew relative to the rest of the state since FY 2014. Cities and counties where the tax base grew at a faster rate than the statewide average from FY 2014 through FY 2021 will have the backfill phased out over a four-year period from FY 2023 to FY 2026, while those that grew at a rate less than the statewide average will have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The City of Dubuque's tax base grew at a rate less than the statewide average and will have a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in FY 2023, the backfill will be eliminated over a seven year period. The projected reduction of State backfill revenue to the general fund is as follows: Fiscal Year 2023 $ 2024 $ 2025 $ 2026 $ 2027 $ Total $ State Backfill Reduction 113,840 113,840 113,840 113,840 113,840 569,200 Local Option Sales Tax The Iowa Department of Revenue released the Fiscal Year 2022 Local Option Sales Tax estimated payments in the Fall of 2021. In addition, the City received the annual reconciliation payment for Fiscal Year 2021 in November 2021 in the amount of $1,610,103. This is the largest reconciliation payment that the City of Dubuque has ever received. The Iowa Department of Revenue has indicated that the reconciliation payment for Dubuque was large because the total LOST receipts for FY21 for Dubuque County exceeded their estimates. This was the case in quite a few Iowa counties in FY21. The law change that was effective July 1, 2019 which required remote sellers that exceed a certain sales revenue to charge Iowa sales tax, including local option sales tax, the same as retailers with a physical presence in Iowa. This law change most likely played a role in the increased LOST receipts in FY20 and FY21. The reconciliation payment is only evidence of receipts exceeding the Iowa Department of 34 Budget Message 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 Iowa 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 Iowa 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. By resolution, 50% of sales tax funds must be used in the General Fund for property tax relief in FY 2023. Sales tax receipts are projected to increase 13.52% ($1,548,885) over FY 2022 budget and 3.00% over FY 2022 actual of $5,625,145 based on FY 2022 revised revenue estimate which includes a reconciliation payment from the State of Iowa of $1,610,103 received in November 2021, increase 3.00% percent to calculate the FY 2023 budget, and then increase at an annual rate of 2.00% percent per year beginning in FY 2024. The following chart shows the past four years of actual sales tax funds and projected FY 2023 for the General Fund: Sales Tax Funds PY Q4 FY 019 $ 366,087 FY 2020 $ 355,027 FY2MWY2MJ $ 380,549 $ 419,551 FY 2023 $ 490,875 Quarter 1 $ 1,066,816 $ 1,124,105 $ 1,252,896 $ 1,361,526 $ 1,592,986 Quarter 2 $ 1,098,596 $ 1,149,881 $ 1,274,904 $ 1,425,968 $ 1,668,383 Quarter 3 $ 1,031,606 $ 971,871 $ 1,072,643 $ 1,211,388 $ 1,417,324 Quarter 4 $ 700,312 $ 700,312 $ 761,097 $ 950,069 $ 1,111,581 Reconciliation $ 217,699 $ 219,332 $ 839,102 $ 945,466 $ 222,240 Total $ 4,481,116 $ 4,520,528 $ 5,581,191 $ 6,313,968 $ 6,503,389 Change +3.92% +0.87% +23.46% +13.13% +3.00% Gaming Revenue Gaming revenues generated from lease payments from the Dubuque Racing Association (DRA) are estimated to increase $2,283,319 from $5,229,358 in FY 2022 to $7,512,677 in FY 2023 based on an amended lease with the Dubuque Racing Association for the lease of the Q Casino. On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, In addition, the distribution of net profit is now split three ways between the City, charities, and the Schmitt Island Master Plan Implementation from a two-way split between the City and charities. The amended lease has an expiration date of December 31, 2036. In calendar year 2021, gross gaming revenues were up 43.0% for the DRA and the Diamond Jo was up 52.1 % as compared to calendar year 2020. As compared to calendar year 2019, gross gaming revenues were up 8.3% for the DRA and the Diamond Jo was up 8.4%. In 35 Budget Message calendar year 2021, the DRA showed increases in hotel room revenue, food and beverage sales, and other revenue as compared to calendar year 2020 The Iowa 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 $761,860 in Sports Book revenue and $10,764,497 in Sports Betting handle during 2021. 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 $130 million annually in 2021 up from the $88 million market in 2020 and up from the $120 million market in 2019. DRA share of the market was 41.2% in 2021 and 41.2% in 2019. The DRA has projected a -5.2% decrease in gross gaming revenue for calendar year 2022. The DRA projects Sports Betting revenue in 2022 of $943,709. The DRA gaming projections include minimal growth in revenues over the next five years with a growth rate of 1.5% in FY 2023, a growth rate of 1.0% 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 November 10, 2021, Hard Rock Casino Rockford opened its temporary casino which includes 635 slot machines and Electronic Table Games. The Hard Rock Casino plans construction of a permanent $310M casino and hotel. Construction will last approximately 18 to 24 months with a projected opening date of late summer 2023. Ho -Chunk Nation is planning to break ground in the spring of 2022 on the construction of $405 million casino and hotel resort in Beloit Wisconsin pending final federal approval. Construction will last approximately 18 to 24 months. Multi -Residential Property Tax Classification Beginning in Fiscal Year 2017 (July 1, 2016), new State legislation created a new property tax classification for rental properties called multi -residential, which requires a rollback, or assessment limitations order, on multi -residential property which will eventually equal the residential rollback. Multi -residential property includes apartments with three or more units. Rental properties of two units were already classified as residential property. The State of Iowa will not backfill property tax loss from the rollback on multi -residential property. The rollback will occur as follows: Fiscal Year FY 2017 Rollback % 86.25% Annual Loss of Tax Revenue $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% $752 366 FY 2023 63.75% $662,821 FY 2024 54.13% $1 250 460 Total $5 690 044 *54.13% = Current residential rollback 36 Budget Message This annual loss in tax revenue of $752,366 in FY 2022 and $1,250,460 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 $5,690,044 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. $2,500 ] $2,349 $2,000 $1,500 $1,000 $500 $0 Multi -Residential Property Tax Based on Average Assessed Value $262,418 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Multi -Residential Property Tax Paid - City Portion Only Health Insurance The City portion of health insurance expense is projected to increase from $1,086 per month per contract to $1,119 per month per contract (based on 588 contracts) in FY 2023 (general fund cost of $326,125). 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. Fiscal Year 2022 projections include additional prescription drug plan savings of $219,256. Based on FY 2022 actual experience, Fiscal Year 2023 is projected to have a 5.62% increase in health insurance costs. Estimates for FY 2024 were increased 5.62%; FY 2025 were increased 5.62%; FY 2026 were increased 5.62%; and FY 2027 were increased 5.62%. 37 Budget Message Downtown Revitalization Government Transparency Staff conducted community outreach with Balancing Act using print and digital marketing and presentations. • October: Point Neighborhood Association. • November: The City Manager hosted an evening hybrid public budget input meeting. Participants could attend in person at the City Council Chambers or by phone or computer using GoToMeeting. • November: City staff participated in Civic Leadership and City Life presentations on the budget process and attendees had the opportunity to prioritize real City projects. A total of 30 community members attended budget presentations. There have been 106 page views of the Balancing Act budget simulator tool and 3 budgets have been submitted by the public as of January 29, 2022. The input provided will be analyzed by City staff and evaluated by the City Manager for inclusion in the Fiscal Year 2023 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 support of the five-year organizational goal of a financially responsible city government and high- 38 Budget Message 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. rnncliminn If the City Council approves the budget recommendation, it will support continued investment in people, businesses and organizations that are making a difference in our community, and continued investment in the infrastructure that must exist for Dubuque to continue to thrive. The adopted resolution for maximum property tax dollars in FY2023 is $26,378,389 (increased by City Council from the staff recommendation of $26,136,666). The maximum property tax dollars excludes the debt service levy of $68,771. The maximum property tax dollars recommendation is a 1.74% increase as compared to the FY2022 property tax dollars. This budget recommendation fits the original tax levy recommendation that was submitted, however I respect the Mayor and City Council's establishment of a higher property tax rate creating more flexibility as you go through the budget process. 39 Budget Message There will be seven City Council special meetings prior to the adoption of the FY 2023 budget before the state mandated deadline of March 31, 2022. 1 want to thank Director of Finance and Budget Jennifer Larson, Assistant City Manager Cori Burbach, Assistant Public Works Director Arielle Swift, Budget/Financial Analyst Nathan Kelleher, Budget/Financial Analyst Jason Clasen, Public Information Officer Randy Gehl, Confidential Account Clerk Ella Lahey, Executive Assistant Stephanie Valentine, and Communications Specialist Kristin Hill, for all their hard work and dedication in preparation of this budget recommendation. MCVM:jml / � k�4/v;� Michael C. Van Milligen City Manager 40 CITY OF DUBUQUE, IOWA Fiscal Year 2023-2027 Capital Improvement Program (CIP) TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Attached is the Fiscal Year 2023-2027 Capital Improvement Program (CIP). State law requires that a five-year CIP be adopted by the City Council after a public hearing. The required CIP public hearing will be held March 29, 2022, at the same time as the public hearing on the Fiscal Year 2023 Operating Budget. The CIP, as the plan for the City's physical development effort, attempts to address a variety of needs that the City must meet if it is to maintain its physical facilities, meet its service commitments and provide for its future development. The CIP adoption reflects the City's comprehensive plan and the goals and priorities established by the City Council and are shown in each of the State mandated budget program areas. With the pledge of the $1.1 trillion dollar federal infrastructure package and other opportunities to compete for grants, the City will need to spend money to prepare projects to be grant eligible and to provide matching funds to compete for grants. The Fiscal Year 2023 CIP budget recommendation of $69,262,412 is a 40.88% increase from the Fiscal Year 2022 CIP budget of $49,164,309. For several years, the Mayor and City Council has been taking advantage of the historically low interest rates and investing in City infrastructure and economic development and redevelopment. At the 2015 City Council Goal Setting, the Mayor and City Council adopted debt reduction as a High Priority. This budget adoption reflects that debt reduction priority. While the City will issue $105,580,538 in new debt in the Recommended five-year CIP, mostly for fire truck, pumper and ambulance replacements, fire station expansion, Mystique Community Ice Center improvements, road improvements, sanitary sewer improvements, additional downtown parking, and maintenance of Five Flags, for a total of $105,580,538 of debt in FY 2023-2027. The City will retire $108,329,563 of existing debt, reducing the amount of City debt by $2,749,025. In this budget recommendation, the Mayor and City Council are currently reviewing for Fiscal Year 2023, the use of the statutory debt limit would be 41 %, and by the end of the Adopted 5-Year Capital Improvement Program (CIP) budget in Fiscal Year 2027, the City of Dubuque would be at 32% of the statutory debt limit. Projections out 10 years to Fiscal Year 2032 show the City of Dubuque at 15% 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. In this extremely low interest rate environment prior to 2015, the City had been increasing the use of debt to accomplish the projects that need to be done. To have any success, a community must have a sound infrastructure. The Mayor and City Council has recognized the infrastructure issues Dubuque faces and has been responsive. While there was some criticism of City use of debt to deal with those infrastructure challenges, that criticism fails to recognize that not financing the needed infrastructure maintenance and improvements is also a form of debt that is passed down to future generations. This was a strategic decision by the City Council realizing that infrastructure investment just gets more expensive over time for these reasons: a) the older a piece of infrastructure gets and the more it is allowed to deteriorate increases costs; b) the longer the wait to invest in infrastructure the costs are increased by inflation; and c) If the investment in infrastructure is not made in this low interest rate environment this investment will eventually need to be made when interest rates are higher, thereby increasing costs. However, beginning in FY 2016 the City Council at their 2015 Goal Setting Session debt reduction was adopted as a High Priority. So the amount of outstanding debt began to decrease and in Fiscal Year 2023 the City will be issuing less debt than is retired and many projects will become pay-as-you-go. The debt principal outstanding projected as of June 30, 2022, is currently $251,719,853. The breakdown of the debt principle outstanding as of June 30, 2022, is as follows: Debt Obligation 6/30/2022 Principle Outstanding General Obligation Essential Corporate Purpose $96,604,176 Less General Obligation Debt Subject to Annual Appropriation ($18,588,398) Tax Increment Notes and Bonds $17,760,000 Economic Development TIF Rebate Agreements $6,071,798 General Fund Leases $100,000 Other Revenue -Backed Loans $3,473,389 Total Indebtedness Subject to Statutory Debt Limit of $241,616,084 $105,420,965 Percent of Statutory Debt Limit Used as of June 30, 2022 45.72% Revenue Bonds $105,717,490 Debt Subject to Annual Appropriation $40,581,398 Total City Indebtedness as of June 30, 2022 $251,719,853 The City will issue $105,580,538 in new debt in the Recommended 5-year CIP, mostly for fire truck and pumper replacements, fire station expansion, road improvements, sanitary sewer improvements, additional downtown parking, and maintenance of Five Flags. Project FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Total Build -out of 2nd floor Old Engine House (18th & Central) $ 193,000 $ — $ — $ — $ — $ 193,000 Fire Station Expansion/Relocation $ — $ — $ — $ 887,890 $ 3,449,550 $ 4,337,440 Ladder Truck & Pumper Replacement/ Expansion $ — $ — $ — $ 510,000 $ — $ 510,000 Ambulance Replacement/Expansion $ 244,810 $ — $ — $ — $ — $ 244,810 HVAC Replacement at Fire Headquarters 11 West 9th Street. $ 175,748 $ 365,697 $ — $ — $ — $ 541,445 Mystique Community Ice Center Settling Remediation and Building Improvements $ 6,300,000 $ — $ — $ — $ — $ 6,300,000 Five Flags GDTIF $ 600,000 $ 1,709,322 $ 2,500,000 $ — $ — $ 4,809,322 Parking Ramp Major Maintenance Repairs $ 245,000 $ — $ — $ — $ — $ 245,000 New Downtown Parking Ramp - GO Debt $ 2,348,822 $ 9,078,000 $ 6,000,000 $ — $ — $ 17,426,822 Smart Parking System - GO Debt $ 40,696 $ — $ 15,366 $ 173,000 $ — $ 229,062 14th Overpass Design - GO Debt $ — $ 627,000 $ — $ — $ — $ 627,000 Solid Waste Collection Vehicles - GO Debt $ — $ 55,000 $ 214,269 $ 106,000 $ — $ 375,269 Sanitary Sewer Projects $ 5,051,897 $ 8,839,852 $ 13,346,822 $ 17,047,271 $ — $ 44,285,842 Stormwater Projects $ 2,600,000 $ 2,600,000 Water Projects $ — $ — $ — $ 4,297,047 $ 18,558,479 $ 22,855,526 Total New Debt $ 17,799,973 $ 20,674,871 $ 22,076,457 $ 23,021,208 $ 22,008,029 $ 105,580,538 The City will retire $108,329,563 of existing debt over the next five -years (FY23-FY27). The following chart shows the net reduction of debt from Fiscal Year 2023 - Fiscal Year 2027: Project FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Total New Debt $ 17,799,973 $ 20,674,871 $ 22,076,457 $ 23,021,208 $ 22,008,029 $ 105,580,538 Retired Debt -$19,032,789 -$20,843,281 -$22,292,530 -$23,025,346 -$23,135,617 -$108,329,563 Net Debt Reduction -$1,232,816 1 -$168,410 -$216,073 -$4,138 -$1,127,588 -$2,749,025 There was a 7.32% increase in assessed value effective January 1, 2021, which is the assessment the Fiscal Year 2023 statutory debt limit is based on. The statutory debt limit effective June 30, 2023 is $259,297,290. The City will be at 41.06% of statutory debt limit by June 30, 2023. In FY 17 the City was at 86.13% of statutory debt limit, so 41.06% in Fiscal Year 2023 is a 45.07% decrease in use of the statutory debt limit. The ten year history of the City's use of the statutory debt limit is as follows: FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 84.31 % 83.87% 89.89% 1 86.13% 69.45% 63.41 % 56.32% 50.22% 1 46.53% 43.63% The five year projection of the City's use of the statutory debt limit from Fiscal Year 2023-2027 including all planned debt issuances subject to the statutory limit and assuming a 2% growth in the City's assessed valuation beginning in Fiscal Year 2023 is as follows: FY 23 FY 24 FY 25 FY 26 FY 27 41.06% 40.98% 39.43% 35.19% 31.98% -iv- The following chart shows Dubuque's relative position pertaining to use of the statutory debt limit for Fiscal Year 2023 compared to the other cities in Iowa for Fiscal Year 2021 with a population over 50,000: Fiscal Year 2021 Legal Debt Limit Comparison for Eleven Largest Iowa Cities Rank City Legal Debt Limit (5%) Statutory Debt Outstanding Percentage of Legal Debt Limit Utilized 11 Des Moines $ 647,212,313 $ 402,520,000 62.19 % 10 Sioux City $ 265,639,656 $ 161,734,999 60.89 % 9 lWaterloo $ 203,066,548 $ 109,313,513 53.83 % 8 Davenport $ 383,418,646 $ 203,845,000 53.17 % 7 Cedar Rapids 609,295,697 308,940,000 50.70 % 6 W. Des Moines $ 450,309,928 $ 225,845,000 50.15 % 5 Dubuque (FY23) $ 259,297,290 $ 106,455,755 41.06 % 4 Ankeny $ 337,864,308 $ 111,645,000 33.04 % 3 Ames $ 251,339,811 $ 62,654,999 24.93 % 2 Council Bluffs $ 274,870,338 $ 53,728,829 19.55 % 1 Iowa City $ 342,894,916 $ 66,740,000 19.46 % Average w/o Dubuque 42.79 a•= Percent of Legal Debt Limit Utilized 80% 60% 40% 20% 24.93% 19.46% 19.55% 50.15% 50.70% 53.17% 53.83% 41.06% 42.79% 33.04% 0% �aG�"� 5 Pee �� 3� �e o\�e5 a�\a5 �o G°��� 4\00� Oee� Ge6o � P 60.89% 62.19% Q°� ��°o G\�� e� Oa�e� e �o Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in Iowa with a population over 50,000 and Dubuque is below the average of the other Cities. Retired Debt Versus New Debt The total City indebtedness as of June 30, 2023, is projected to be 251,505,826 (41.06% of statutory debt limit). The total City indebtedness as of June 30, 2015, was $295,561,181 (69.45% of statutory debt limit). The City is projected to have $44,055,355 less in debt as of June 30, 2023. The combination of reduced debt and increased utility rates partially reflects the movement to a more "pay as you go" strategy, which could lead to larger tax and fee increases than with the use of debt. The following chart shows the amount of retired debt as compared to new debt. The new debt includes new debt issuances as well as draw downs on existing state revolving fund loans: 1, M $25 ;1K11 $15 G,'11E@ $5 $0 Retired Debt Versus New Debt (In Millions) $24.32 $24.73 $24.07 CO fl- 00 M O — N CO It Ln O ti 00 O') O — N N N N N N N N N N N CO CO CO } } } } } } } } } } } } } } } } } LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL Retired Debt 0 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. -vii- Statutory Debt and Total Debt 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 2023 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 Iowa. In Fiscal Year 2015, the City of Dubuque used 90% of the statutory debt limit. In this budget recommendation, the Mayor and City Council are currently reviewing for Fiscal Year 2023, the use of the statutory debt limit would be 41 %, and by the end of the recommended 5-Year Capital Improvement Program (CIP) budget in Fiscal Year 2027, the City of Dubuque would be at 32% of the statutory debt limit. Projections out 10 years to Fiscal Year 2032 show the City of Dubuque at 15% 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% o 87 /o 82% 790/6 79% 8700 0% 72% 74% 70% 750 0 63% 66% 66% ° 62 /a 56% j 50% 47% 0 50% ° 41% 41% o 39 /0 35% 32% 28% 24% 21 ° 25% /0 18% 15% -n -n TI TI TI 71 TI TI -n -n -n -n -n -n -n -n TI TI W W W to Cn V OD W O N W 44- to 0) V 00 t0 O N FY16 Adopted FY23 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 $253.86 million (32% of the statutory debt limit) and the projection is to be at $146.46 million (18% of statutory debt limit) within 10 years. Total Debt (In Millions) $324 $302.3 $297"*i $2$279.9 . $267.4 $270 $255.9.5 $250.6 $251.5 $252.4 $253.2 $254.2 $253.9 44 $243 $252.2 $251.7 31.3 C $244.3 $241.4 $216 $226.2 85.6 $189 $162 $163 $135 $146.5 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY16 Adopted --iff- FY23 Recommended General Fund Reserves 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 "AX rated cities. In May 2021, Moody's Investor Services upgraded the City's Water Enterprise's outstanding revenue bonds from Al to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. In October 2016, Moody's Investors Service upgraded the rating on $18 million in City of Dubuque bonds issued to support the Bee Branch Watershed Flood Mitigation Project from A3 to A2. These credit ratings are affirmation of the sound fiscal management of the mayor and city council, put Dubuque in a strong position to capitalize on favorable financial markets, borrow at low interest rate when necessary, and make critical investments in the community. . - Fiscal (As percent of Reason for from Fiscal Year Year General Fund .- previous 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. Increase due to American Rescue Plan Act funds received ($13.2 FY 2021 40.72% million), frozen positions and capital projects through Feb 2021. -x- 50 45 40 35 30 L 25 20 15 10 Fund Reserve as a Percent of General Fund Revenue 31.24% 29.06% 40.72% 23.81 % 122.78% 21.90% 20.09% 21.05% 20.63% FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 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. After all planned expenditures in FY 2022, the City of Dubuque will have a general fund reserve of 32.47% of general fund expenses as computed by the methodology adopted in the City's general fund reserve policy on a cash basis or 22.78% 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 $22,367,646 on June 30, 2022 as compared to the general fund reserve balance on an accrual basis of $17,743,471 as computed by Moody's Investors Service.The general fund reserve balance on an accrual basis exceeds 22% in FY 2022, which is the margin of error used to ensure the City always has a general fund reserve of at least 20% as computed by Moody's Investors Service. In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve level in Fiscal Year 2022. In fact, the City met the 20% reserve requirement in FY 2017, five years ahead of schedule and has sustained a greater than 20% reserve. Contribution$— City's Spendable General Fund Cash Reserve Fund $21,744,160 $31,089,468 $17,743,471 $17,743,471 $17,743,471 $17,743,471 $17,743,471 $17,743,471 Balance % of Projected Revenue (Moody's) 31.24% 40.72% 22.78% 22.34% 21.9% 21.47% 21.05% 20.63% State Revolving Fund Sponsorship Projects and Green Project Loans The City uses State Revolving Fund (SRF) loans for water and sanitary sewer projects whenever possible because of the very low annual interest rate of 1.75% with an annual servicing fee of 0.25%. In 2009, legislation was passed in Iowa that allows water utilities that issue debt through the Clean Water State Revolving Fund Program to sponsor and help finance other water quality improvement (CWSRF) projects within or outside its service limits. This new funding mechanism, called Water Resource Restoration Sponsored Projects, will provide cities, counties, local watershed organizations, watershed management authorities, county conservation boards, and soil and water conservation districts a funding source to construct improvements throughout a watershed that keep sediment, nutrients, chemicals and other pollutants out of streams and lakes. Repayment of a standard Clean Water SRF (CWSRF) loan includes the repayment of the original loan amount, the principal, and the cost to finance the loan, interest, and fees. On a CWSRF loan with a sponsored project, the financing costs are reduced by the amount of the cost of the sponsored project improvements. Figure 1 shows a comparison between a standard CWSRF loan and a CWSRF loan with a sponsorship project. As shown, the total cost to the utility (the total of loan repayments) remains unchanged as the cost of funding for the sponsorship project is offset by a reduction in loan financing costs. In essence, two water quality projects are completed for the price of one. U Funding for Sponsorship Project a a m o Loan Financing Costs Gi(interest & Fees) c m 0 u CWSRF Project Loan Principal 0 m 0 Joao GS�oc� Ot`AN \,oat` Qtol Figure 1. Loan repayment comparison between a standard CWSRF loan and a CWSRF loan with a sponsorship project. After three years of the State of Iowa being unsuccessful in completing one of these modified loans, the City of Dubuque had the first successful application for the state when, in April 2013, the City was awarded $9.4 million of the interest paid on the Water and Resource Recovery Center to be used to reconstruct over 70 Green Alleys in the Bee Branch Watershed. The principal for the Water & Resource Recovery Center Upgrade was increased from $64,885,000 to $75,145,579 and the interest rate plus annual servicing fee was decreased from 3.25% to 2.00% to add the Green Alley sponsorship project. This reduction allowed for increased proceeds and resulted in a true interest cost of 1.96% and gross borrowing savings of $11.4 million. The Federal Fiscal Years 2010, 2011, and 2012 State Revolving Fund capitalization grants included requirements for certain percentages of the funds to be allocated for green projects. Each green infrastructure project receives a portion of loan forgiveness not to exceed 30%. In June 2015, the City of Dubuque Upper Bee Branch Creek Restoration Project (Upper Bee Branch Project) qualified for a Green Project Loan from the CWSRF Program in the amount of $29,541,000. The loan includes a principal forgiveness provision. The amount of the loan to be forgiven is 20% of the total loan disbursements made under the loan agreement. The amount of the loan that was forgiven in June 2020 was $5,908,200. The actual true interest cost for total funds received was not the 2.00% borrowing rate (1.75% interest and 0.25% administrative fee), but just 0.07% after reflecting the receipt of interest free funds (forgiven portion). Then, in August 2017, the City was awarded $1.4 million in funding for improvements with the Catfish Creek Watershed through the State of Iowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Upper Bee Branch Creek Restoration Project. The funding for the $1.4 million in improvements will come from the interest payments on the City's Upper Bee Branch SRF loan. The Upper Bee Branch Creek SRF loan principal was increased to $30,941,000 and the interest rate plus the annual servicing fee was reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were $1.38 million less than the original loan. In May 2018, the City was awarded $1.0 million in funding for pervious green alley improvements with the Bee Branch Creek and Catfish Creek Watersheds through the State of Iowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Upper Bee Branch Creek Railroad Culverts Project. The funding for the $1.0 million in improvements will come from the interest payments on the City's Upper Bee Branch Railroad Culvert SRF loan. The Upper Bee Branch Creek Railroad Culvert SRF loan principal was increased to $17,387,000 and the interest rate plus the annual servicing fee was reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were $1.05 million less than the original loan. In February 2019, the City was awarded $276,300 in funding for Eagle Point Park Environmental Restoration through the State of Iowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Kerper Boulevard Sanitary Sewer Project. The funding for the $276,300 in improvements will come from the interest payments on the City's Kerper Boulevard Sanitary Sewer SRF loan. The Iowa Finance Authority now requires that sponsorship projects are included in the initial loan amount so that the repayment schedule does not have to be adjusted. On a gross basis, the borrowing costs for the new loan were $278,000 less than if there was not a sponsorship project included. The five-year CIP adopted through the current year (Fiscal Year 2022) budget process covered Fiscal Year 2022 through 2026 and is $187,487,690. The adopted five-year CIP for the upcoming budget process (Fiscal Year 2023) will cover Fiscal Year 2023 through 2027 and will be $255,784,207. This is a $68,296,517 (36.43%) increase. FY 2022-2026 Capital Improvement Program (CIP) compared to the FY 2023-2027 Capital Improvement Program is as follows: FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Total FY22 CIP $49,342,750 $43,298,159 $39,593,286 $29,389,844 $25,863,651 — $187,487,690 FY23 CIP — $69,262,412 $53,256,222 $50,966,804 $40,621,920 $41,676,849 $255,784,207 $ Difference — +$25,964,253 +$13,662,936 +$21,576,960 +$14,758,269 — $68,296,517 % Change — +59.97% +34.51 % +73.42% +57.06% — 36.43% Further information about the changes to capital improvement projects can be found on pages xv-xxi. Fiscal Year 2023 will be the sixteenth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low -to -moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2023 Stormwater User Fee is proposed to increase from $8.85 per SFU to $9.00 per SFU, a 1.69% increase, consistent with Ordinance 16-14 passed on March 5, 2014. FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Adopted Per Ordinance 21-12 $8.50 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 Adopted Per Ordinance 16-14 $6.38 $6.81 $7.27 $7.76 $8.29 $8.85 $9.00 $9.00 Adopted Per Ordinance 21-20 $- $- $- $- $- $8.29 $8.29 $8.29 Adopted Per Ordinance 10-21 $— $— $— $— $— $— $8.85 $8.85 Proposed FY23 % Decrease From Ordinance 21-12 -24.94% -24.33% -19.22% -13.78% -7.89% -7.89% -1.67% 0.00% * The recommended rates for FY16 through FY20 reflect the rates previously established by Ordinance 16-14 following the State's approval of $98.5 million in State Flood Mitigation state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. Ordinance 21-12 was the ordinance adopted prior to the City receiving the Flood Mitigation grant. Ordinance 21-20 was adopted in response to the COVID-19 pandemic. The Stormwater Utility was formed on July 1, 2003, to update and expand the City's aging infrastructure, comply with the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit, and implement the various elements of the 2001 Drainage Basin Master Plan Stormwater Management Plan (amended in 2013), which outlined improvements in both the Catfish Creek and Bee Branch watersheds. The flood mitigation improvements in the Catfish Creek Watershed have been completed. The improvements in the Bee Branch Watershed are part of the multi -phased, fiscally responsible, holistic Bee Branch Watershed Flood Mitigation Project which will mitigate flooding, improve water quality, stimulate investment, and enhance the quality of life. The City's has been able to garner support from local, state, and federal partners with over $163 million in outside funding to help offset the cost of the overall $237 million project. Since 2001, the City has made steady progress on the various phases of the project. The phases of the Bee Branch Watershed Flood Mitigation Project are as follows: Phase Description Status 1 Carter Road Detention Basin Complete 2 West 32nd Street Detention Basin Complete 3 Historic Millwork District Complete 4 Lower Bee Branch Creek Restoration Complete 5 Flood Mitigation Gate & Pump Replacement Under Design 6 Impervious Surface Reduction 1/3 of alleys converted to "Green Alleys" 7 Upper Bee Branch Creek Restoration/Railroad Culverts Under Construction 8 22nd Street Storm Sewer Improvements Complete from Elm Street to N. Main 9 Flood Mitigation Maintenance Facility Site Cleanup/Preparation 10 North End Storm Sewer Improvements Initiate Design in 2028 11 Water Plant Flood Protection Initiate Design in 2030 12 17th Street Storm Sewer Improvements Complete from Elm St. to Heeb St-71 Individually, each of the 12 phases of the project will provide some benefit. But flash flooding can be expected to occur until all of the improvements are implemented. But it is also true that with the completion of each subsequent phase, the threat of flash flood damage is lessened and the resulting damage will be mitigated. When complete, it is expected to prevent an estimated $582 million in damages over its 100-year design life. Because of the public support for the Bee Branch Watershed Flood Mitigation Project, the stated commitment of the City of Dubuque City Council to implement the various phases of the project, and because the City has already started implementing some of the improvements, private investment in the Bee Branch Watershed has already eclipsed $139 million since 2008 with an additional $215 million expected to follow in the next ten years for a combined total of $354 million in private investment. This non-public investment by private developers includes undertakings such as the rehabilitation of Caradco, Novelty Ironworks, Betty Building, Voices Building, Power Plant, Foundry, Farley Loetscher, Kirby Building and Wilmac Building all located in the Historic Millwork District; $15.1 million of non-public investment in the Washington Neighborhood related to Community Housing Initiatives Acquisition & Redevelopment, St. Mary's Campus, Corner Grill, Rusk Building, Conlin Building, Welu Building, Richards Building, High Building, Streinz Building, Widmeier Building and Engine House; and $2.3 million in non-public investment in the Downtown Neighborhood related to the Babler Building, 324-326 West Locust Street, 346-348 West Locust Street and 407-409 Loras Boulevard. -xv- The CIP budget reflects the Dubuque Five -Year (2023-2027) City Council Goals and 2021-2023 Policy Agenda, established by the City Council August, 2021. Dubuque Five -Year City Council Goals Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity Vibrant Community: Healthy and Safe Livable Neighborhoods and Housing: Great Place to Live Financially Responsible, High Performance City Organization: Sustainable, Equitable and Effective Service Delivery Sustainable Environment: Preserving and Enhancing Natural Resources Partnership for a Better Dubuque: Building our Community that is Viable, Livable and Equitable Diverse Arts, Culture, Parks and Recreation Experiences and Activities Connected Community: Equitable Transportation, Technology, Infrastructure and Mobility Policy Agenda 2021 - 2023 Top Priority (in alphabetical order) • Chaplain Schmitt Island Master Plan Implementation • City Information & Network Security • Equitable Poverty Prevention & Reduction Plan Implementation • Federal Infrastructure Program Preparation • Five Flags Center Direction • Historic Building Rehabilitation/Preservation High Priority • Bee Branch Watershed Project: Next Steps • Childcare Initiative • Community Broadband Expansion • Complete Streets Concept Implementation: 16th St./Elm St.;14th St. Railroad Overpass Project • Comprehensive Parks Master Plan • Imagine Dubuque Implementation • West End Fire Station Attachment 3 provides a summary of these projects organized by City Council's five-year goals and Fiscal Year 2023 priorities reflect how these goals are addressed. Finally, Attachment 4 provides detail on the source of funds and highlights important points about the 5-year CIP Program. CIP FORMAT The format for the Fiscal Year 2023-2027 CIP is substantially the same as previous fiscal years. First, an index referencing the 2023-2027 Capital Improvement Budget follows the budget message. The index identifies each capital improvement first by city department and then by all applicable State programs as a subcategory under each department. The index serves as a quick reference for each CIP, and the far right hand column shows the page number of each project. Secondly, a separate project page is provided to show the detail for each individual project. These projects pages are also arranged first by city department and then by State program as a subcategory within each department. As in previous CIP budget documents, each detailed project page identifies the city department, the state program, project title, account code (consisting of program number, department number, fund and capital project number), and total project cost. The project page then shows any funds expended for the project in Fiscal Year 2021 and the adopted budget in Fiscal Year 2022. In Section A of the project form entitled "Expenditure Items", project costs are shown by major expenditure item (i.e., Design and Engineering, Land and Right -of -Way Purchase, Construction and Other Expense). In Section B, entitled "Project Financing", the project funding is presented by major revenue source (i.e., General Fund, Sales Tax Fund, Water Depreciation Fund, Sanitary Sewer Construction Fund, and Road Use Tax Fund). In Section C, entitled "Impact — Operations," the dollar impact on operations in terms of greater or lesser operating costs and/or greater or lesser revenue is provided when available. Lastly, there is a narrative section, which provides a description of the project, a justification for the project and, where appropriate, how it relates to other projects or plans. A small map may also be provided to further identify the location of the project. Each detailed project page identifies the budget for each fiscal year in the next five years. There is a sixth column labeled "2028". This column is included to show that the project does not end in the next five years and that additional budget will be needed to fully complete the project. The "2028" column will show the total remaining estimate for the project, unless the project is annual. This column could also be known as "Beyond Fiscal Year 2027." If a project is annual the "2028" column will only show one years worth of budget. New this fiscal year is a section in the detailed project pages called "First Year Submitted". This information represents the year the capital improvement project was first submitted for consideration. This is not the first year that the capital project was adopted for funding, but instead represents the first year a staff member identified a need for the project and created a CIP to present to the City Manager. CONCLUSION The Capital Improvement Program represents the City of Dubuque's commitment to a maintenance and physical development plan for the next five years. The first year of the five-year CIP goes into the budget for next year and deserves the most attention. As you know, the CIP is updated each year so that City Council will have an opportunity in the next year to change Fiscal Year 2024 through Fiscal Year 2027 projects, as well as to add projects for Fiscal Year 2028. A ranking system was established in Fiscal Year 2019 to more readily identify capital projects that directly meet City Council Goals and Priorities and address City needs. This ranking process also included several collaborative meetings with staff to determine which projects should be recommended for funding with the limited resources available.There are many capital projects that have been added to meet City Council Goals and Priorities and address City needs ($74,776,242). Those new projects that appear in the five-year CIP are as follows: Department New Project Total CIP Fire Station 5 Waterproofing and Driveway $ 49,000 Fire Station 4 Kitchen Remodel, Flooring and Paint $ 40,000 Fire Station 5 Structural Beam Replacement and Repair $ 38,500 Fire Station 5 Off -Street Parking Area $ 15,000 Parks Comprehensive Parks Master Plan $ 208,000 Parks Chaplain Schmitt Island - Landscaping $ 50,000 Parks Chaplain Schmitt Island - Entrance Sign $ 72,500 Parks Chaplain Schmitt Island - Trail and Access Plan $ 50,000 Parks Reimagine Comiskey $ 496,000 Parks Grandview Avenue Boulevard Landscape Renovation Plan $ 50,000 Parks Trail Maintenance/Repair $ 20,000 Civic Center Theater - Boiler Replacement $ 100,000 Civic Center Theater - Exterior Awning Addition $ 27,000 Civic Center Theater - Stage Curtain Replacement $ 36,500 Civic Center Theater - Stage Lighting Replacement $ 125,000 Civic Center Theater - Plaster Restoration and Paint $ 212,000 Civic Center Theater - East Exterior and Interior Restoration $ 30,000 Civic Center Promenade - Remodel Concession Stand $ 187,000 Recreation Flora and Sutton Pools Playground Replacements $ 300,000 Recreation Flora and Sutton Pools Counter Reconstruction - ADA $ 10,000 Recreation Flora and Sutton Pools Renovate Locker Rooms $ 60,000 Recreation Sutton Pool Zero Depth Survey & Remediation $ 41,500 Recreation Flora Pool Water Slide Assessment and Repairs $ 52,000 Department New Project Total CIP Recreation Ice Center - Generator $ 300,000 Recreation Ice Center - Dehumidification Improvements $ 1,400,000 Recreation Ice Center - Safety Improvements $ 60,320 Recreation Ice Center - Concession Re -Design and Upgrade $ 176,800 Recreation Ice Center - Facilities Mechanical Systems and Energy Usage Assess $ 60,000 Water Water System Improvements Pressure Zone 3 $ 19,167,398 Water Webber Property Phase 1 & 2 $ 970,245 W&RRC Boiler #2 $ 425,000 W&RRC Struvite Control System $ 1,060,000 W&RRC Bar Screen Replacement $ 1,590,000 W&RRC RAS Pump Replacement $ 980,000 Airport Construct Land Side Storage Lot $ 74,000 Public Works Municipal Service Center Roof Mounted HVAC Replacement Unit $ 95,000 Public Works Municipal Service Center Vehicle Access Doors Replacement Project $ 75,008 Public Works Street Vacuum/Flush Unit Replacement $ 185,000 Public Works Bee Branch Flood Control Pumping Station Camera Project $ 55,000 Public Works Purina Drive Load Scanner Systems $ 69,471 Engineering Old Mill Road Lift Station and Force Main $ 22,389,621 Engineering Granger Creek Lift Station Improvements $ 607,650 Engineering Industrial Park Sanitary Sewer $ 504,000 Engineering Catfish Creek Sewershed Interceptor Sewer Improvements $ 3,210,500 Engineering Central Avenue Streetscape Design 1-way to 2-way $ 400,000 Engineering Althauser Street Resurfacing $ 140,000 Engineering Green Alleys - Non Bee Branch $ 600,000 Engineering Dubuque Industrial Center Crossroads - New Road Infrastructure $ 2,770,000 Engineering Dubuque Industrial Center McFadden Farm - South Heacock Road $ 2,710,000 Engineering Schmitt Island Connector Trail $ 132,000 Engineering Chaplain Schmitt Island Multi -Modal Access Plan $ 62,000 Engineering Harbor Area Maintenance - Dredging $ 676,000 Engineering Connecting Downtown Destinations $ 615,000 Engineering Street Light Controller Meter Installation - Phase 2 $ 90,000 Engineering Citywide Fiber Cable Backbone Masterplan Implementation $ 3,000,000 Department New Project Total CIP Engineering Chesterfield Lighting Project $ 67,000 Engineering Federal Building Parking Lot Replacement $ 205,000 Engineering Build -Out of 2nd Floor Old Engine House (18th and Central) $ 193,000 Engineering MFC Building Envelope Stabilization $ 61,500 Engineering City Annex Roof Replacement Project $ 65,000 Economic Development South Port Master Plan Implementation $ 215,000 Economic Development Development Dubuque Industrial Center - Crossroads $ 3,941,803 Economic Development Green Space Historic Millwork District $ 400,000 Economic Development Central Avenue Housing Forgivable Loan $ 750,000 Economic Development Low Income Small Business Grant $ 50,000 Economic Development Business, Non -Profit and Arts Groups Assistance Program $ 500,000 Information Services Fiber Optic/Conduit Asset Maintenance and Documentation $ 150,000 Information Services Central Avenue Streetscape Design $ 400,000 Information Services Data Center $ 857,926 TOTAL $ 74,776,242 The Capital Improvement requests that were previously funded in the five-year CIP that are not included in this five-year CIP total $24,440,415. To put these back into the five-year CIP, other projects will need to be removed, property taxes would need to be raised and/or more debt would need to be issued. Of those removed, $2,249,600 are identified as deferred maintenance items, delineated with an asterisks below. The removed CIPs are as follows: Department Existing Project Not Funded Total CIP Parks North Fork Trail Park Development $ 214,000 Parks Roosevelt Park Redevelopment $ 35,000 Parks Eagle Point Park Building and Structure Assess $ 5,000 Parks Storybook Zoo Playground Replacement $ 110,000 * Parks Eagle Point Park Renovate Log Cabin Pavilion $ 40,000 * Parks Eagle Point Park Accessible Walkway to Log Cabin $ 356,000 Parks Eagle Point Park Light Trolley Line Trail $ 155,000 Parks Eagle Point Park Indian Room Restoration $ 122,000 * Parks Eagle Point Park Develop Wading Pool Replacement $ 407,000 * Parks Installation of Flag Poles in Community Parks $ 75,000 Department Existing Project Not Funded Total CIP Parks Replace Highway 20 Roses $ 100,000 * Parks Valentine Park Pavilion Installation $ 55,000 Parks Valley High Park - Replace Play Unit $ 150,000 * Parks Industrial Center Native Plantings $ 80,000 Parks Re -landscape Locust Street Connector $ 30,000 * Parks Parks Replace Trash Cans $ 80,000 * Parks Second Dog Park Planning $ 53,000 Parks Irrigation to Planters and Flower Beds $ 150,000 * Parks Park Drinking Fountains $ 80,000 * Parks Granger Creek Nature Trail - Asphalt Trail $ 350,000 Parks Greenhouse - Remove Trees on Hillside $ 25,000 * Parks Town Clock Lighting $ 10,000 Parks Welcome Sign East $ 61,000 Parks Welcome Sign North $ 61,000 Parks Greenhouse - Replace Lexan $ 70,000 * Conference Center Conference Landscape Renovations $ 33,500 * Civic Center Civic Center Concession Gate A and C Remodel $ 114,100 * Civic Center Civic Center Arena Sport Court $ 170,000 Recreation MFC 2nd Floor Renovation $ 808,000 * Airport Additional Terminal Parking $ 1,900,250 Economic Development Dubuque Industrial Center South Signs $ 80,465 Economic Development Development of Graf Property $ 2,217,000 Economic Development Development of McFadden Property $ 16,243,100 Public Works Wheel Loader Purchase $255,582 Engineering Riverfront Leasehold Improvements $ 100,000 * Engineering Seippel Road Reconstruction $ 840,000 * Engineering Rockdale Road Reconstruction - Maquoketa Dr $ 1,500,000 * Engineering Pennsylvania Avenue & Radford Road Roundabout $ 1,350,000 Engineering Furniture, Fixtures, and Equipment Replacement $ 93,000 * Engineering Seippel Road Culvert Replacement & Storm Sewer $ 25,000 * Engineering Century Drive Reconstruction $ 50,000 * Facilities Management City Office Renovation $ 400,000 * Department Existing Project Not Funded Total CIP Facilities Management City Hall Third Floor Renovation $ 20,000 * Facilities Management City Hall Landscape Enhancements $ 117,500 * Facilities Management MFC Camera and Security System $ 92,500 Total $ 24,440,415 Total Deferred Maintenance $ 2,249,600 As is the case every year, there were new projects requested that were not able to be included in whole or in part in this five year CIP ($28,879,642). Of those $2,287,568 are identified as deferred maintenance, delineated with an asterisks below. CIP requests that were not funded include: Department New Project Not Funded Total CIP Airport Construct Land Side Storage Lot $49,000 Airport Terminal Geothermal Heat Pump Replacements $40,000 * Airport UpdateARFF/Maintenance Building Lighting to LED $ 15,100 * Engineering 32nd Street Multimodal Corridor Access $260,000 Engineering 1st & Locust Streets Gateway Improvements $365,000 * Engineering Kerper Blvd Road Diet $280,000 * Engineering Central Avenue Streetscaping - Construction $1,460,000 * Engineering Chavenelle and Seippel Road Intersection Roundabout $790,000 Engineering Bee Branch Greenway Fitness Loop $114,000 Engineering Bee Branch Greenway Park Signage $21,000 Engineering Seippel Road Lighting Project $96,000 Facilities Management Engineering Department Materials Testing Lab Reno $63,500 * Information Services Data Center $2,202,074 Parks Eagle Point Park Nature Trail Project $50,000 Parks Veterans Park Pickleball Improvements $35,000 Public Information Office Port of Dubuque Ramp Electronic Sign Replacement $ 41,120 * Public Information Office Historic Federal Building Electronic Sign Replacement $ 22,848 * W&RRC On -Site Oxygen Generation $1,125,000 W&RRC Peak Flow Capacity Upgrades $21,850,000 Total $28,879,642 Total Deferred Maintenance $2,287,568 Notable FY2023 Capital Improvement Projects Total City Investment Department Project Title FY2023-FY2027 Page Fire Ladder Truck & Pumper $960,000 1 Fire HVAC Replacement $541,445 2 Fire Ambulance Replacement $659,810 6 Fire Station Expansion/ Fire Relocation $4,387,440 7 Parks Pebble Cove Park Dev $214,000 14 Parks Replace Play Units See Breakout (Right) Comprehensive Parks Parks Master Plan $208,000 15 Parks Low/Mod Income Park $600,000 16 Parks Ash Tree Removal/Replc $609,000 53 Civic Center Five Flags Building Improv $6,000,000 68 Recreation Flora Water Playground $300,000 92 Recreation Ice Center Settling Remed $4,600,000 103 Recreation Ice Center Generator $300,000 104 Ice Center Recreation Dehumidification $1,400,000 105 Conference Center Roof Restoration $700,000 114 Water System Improvements Pressure Water Zone 3 $19,167,398 190 W&RRC Final Clarifier Rehab $1,500,000 173 Sidestream Nitrogen W&RRC Removal $4,000,000 175 Planned Playground Equipment Replacement Project Total Investment Page Gay Park $90,000 39 Hilltop Park $68,615 42 Madison Park $85,800 43 Marshall Park $150,000 46 Teddy Bear Park $150,000 52 Total $544,415 Total City Investment Department Project Title FY2023-FY2027 Page Airport Reconstruct Taxiway A $11,700,000 181 Public Works Curb Ramp Program $2,819,859 196 Cab -Over Solid Waste Public Works Vehicles $2,167,047 219 Cedar and Terminal Street Engineering Lift Station and Force Main $3,700,000 241 Bee Branch Interceptor Engineering Sewer Connection $3,335,000 252 Fiber Conduit, Cable and Engineering Management See Breakout (Right) Engineering Old Mill Road Lift Station $20,839,621 253 Catfish Creek Sewershed Engineering Interceptor Sewer $3,210,500 257 Bee Branch Creek Gate & Engineering Pump Replacement $12,586,470 264 Engineering East - West Corridor $8,060,000 283 Economic Development Dubuque Development Industrial Center: $233,500 317 Central Avenue Corridor Economic Streetscape Master Plan Development Implementation $3,941,803 370 Transportation Vehicle Replacement $2,574,943 375 Transportation New Parking Ramp $17,426,822 379 Information Services Data Center Data Center 410 The CIP budget is the product of the hard work of a large number of people. It begins with department and division managers and their staff who prepared, ranked and updated the CIP requests. It extends to Boards and Commissions who review staff's recommendations and make modifications and establish priorities. I wish to express my thanks to all who were involved in preparing the Fiscal Year 2023-2027 version of the City's Capital Improvement Program. Special thanks go to Director of Finance & Budget Jennifer Larson, Budget/Financial Analysts Nathan Kelleher and Jason Clasen, Assistant Public Works Director Arielle Swift, Executive Assistant Stephanie Valentine and Finance Confidential Account Clerk Ella Lahey. I am proud of the work completed by City staff and the end -result. I hope after you have had an opportunity to review this document that you feel it is responsive to your priorities. - xxv - ATTACHMENTS - PROVIDE OVERVIEW OF THE FISCAL YEAR 2023-2027 CAPITAL IMPROVEMENT PROGRAM Attachment 1 FISCAL YEARS 2023-2027 CIP SOURCE OF FUNDS To finance the CIP projects, a variety of funding sources are used. The following table shows the source of funds for each year of the 5 year CIP. SOURCE OF FUNDS IN CAPITAL BUDGET FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 TOTAL PERCENT Current Revenue Rental Dwelling Rehab Loan Repayments 30,000 30,000 30,000 30,000 30,000 150,000 0.06 % Homeownership Loan Repayments 4,000 4,000 4,000 5,000 5,000 22,000 0.01 % Historic Preservation Loan Repayments 7,000 7,000 7,000 7,000 7,000 35,000 0.01 % Washington Neighborhood Loan Repayments 40,000 40,000 40,000 40,000 40,000 200,000 0.08 % Insurance and Other Reimbursements 30,000 30,000 30,000 20,000 30,000 140,000 0.05 % Golf Revenue - 10,000 10,000 25,000 10,000 55,000 0.02 % 111,000 121,000 121,000 127,000 122,000 602,000 0.24 % Subtotal Current Revenue Cable TV 920 7,400 9,000 6,520 - 23,840 0.01 % Internal Service Funds -City Garage 158,725 20,139 281,999 60,620 9,400 530,883 0.21 % Landfill Fund 1,389,120 6,600 31,420 12,320 12,200 1,451,660 0.57 % Transit Fund 395,732 133,229 316,930 908,039 925,619 2,679,549 1.05 % Parking Enterprise Fund 2,300 21,819 - 2,300 - 26,419 0.01 % Solid Waste Collection 448,655 407,454 203,004 239,543 355,732 1,654,388 0.65 % Sanitary Sewer Utility 412,019 179,400 1,400,000 1,600,000 2,577,230 6,168,649 2.41 % Salt Operations Utility 0 69,471 0 0 0 69,471 0.03 % Stormwater Utility Fees 1,132,944 532,400 801,642 900,050 434,474 3,801,510 1.49 % Water Utility Fund 4,742,253 3,594,480 3,237,336 3,263,922 3,200,000 18,037,991 7.05 % 8,682,668 4,972,392 6,281,331 6,993,314 7,514,655 34,444,360 13.47 % Current Revenue-Utility/Enterprise Airport Customer Facility Charge - - - - - 0 0.00 % Sales Tax 20% 4,116,881 1,101,412 1,381,206 1,324,881 2,309,360 10,233,740 4.00 % Sales Tax 30% 4,468,144 3,897,435 3,954,740 3,644,816 3,985,783 19,950,918 7.80 % SRF Bonds -Water Fund Abated - - - 4,297,047 18,558,479 22,855,526 8.94 % SRF Bonds -Sewer Fund Abated 5,051,897 8,839,852 13,346,822 17,047,271 - 44,285,842 17.31 % SRF Bonds-Stormwater Abated 2,600,000 2,600,000 1.02 % GO Bonds - Solid Waste Collection - 55,000 214,269 106,000 - 375,269 0.15 % GO Bonds -Sales Tax 20% 6,913,558 365,697 - 1,397,890 3,449,550 12,126,695 4.74 % GO Bonds-GDTIF 3,234,518 11,414,322 8,515,366 173,000 23,337,206 9.12 % 26,384,998 25,673,718 27,412,403 27,990,905 28,303,172 135,765,196 53.08 % Total Construction Community Development Funds 595,000 465,000 445,000 445,000 295,000 2,245,000 0.88 % SOURCE OF FUNDS IN CAPITAL BUDGET FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 TOTAL PERCENT FAA Total 2,790,000 5,264,936 2,547,000 - 75,532 10,677,468 4.17 % Federal American Rescue Plan Act Funds 10,948,075 1,561,288 50,731 - - 12,560,094 4.91 % Federal Airport American Rescue Plan Act Funds 480,000 624,993 283,000 - - 1,387,993 0.54 % Federal Assistance 1,733,775 1,001,925 400,000 - - 3,135,700 1.23 % Federal--STP Funds 0 1,300,000 - - - 1,300,000 0.51 % 16,546,850 10,218,142 3,725,731 445,000 370,532 31,306,255 12.24 % Total Federal Iowa Finance Authority 141,283 141,283 141,283 141,283 141,283 706,415 0.28 % Road Use Tax 1,714,756 509,797 403,305 122,000 - 2,749,858 1.08 % State Flood Mitigation Grant 4,426,050 3,910,420 225,000 - - 8,561,470 3.35 % State Transit - 18,189 - - 19,303 37,492 0.01 % Other State Funding- IDOT & Trails Grants 4,251,046 1,528,954 6,540,000 - 20,000 12,340,000 4.82 % 10,533,135 6,108,643 7,309,588 263,283 180,586 24,395,235 9.54 % Total State DRA-Gaming Receipts 0 55,000 92,170 259,550 367,500 774,220 0.30 % DRA-Distribution of Surplus 2,601,410 1,684,644 1,156,560 1,304,800 1,129,893 7,877,307 3.08 % 2,601,410 1,739,644 1,248,730 1,564,350 1,497,393 8,651,527 3.38 % Total DRA Greater Downtown TIF Payments 2,289,504 2,679,678 2,128,634 1,607,000 1,851,000 10,555,816 4.13 % English Ridge Housing TIF Payments 222,342 243,614 319,117 336,209 354,103 1,475,385 0.58 % Rustic Point Housing TIF Payments 38,562 47,194 60,173 93,738 111,548 351,215 0.14 % South Pointe Housing TIF 87,985 199,230 256,076 361,614 351,789 1,256,694 0.49 % Dubuque Industrial West TIF Payments 418,500 - 395,000 - 228,803 1,042,303 0.41 % North Cascade Housing TIF Payments 446,503 506,877 561,239 0 - 1,514,619 0.59 % 3,503,396 3,676,593 3,720,239 2,398,561 2,897,243 16,196,032 6.33 % Total TIF Funds Private Participation 82,931 84,590 86,282 88,007 89,768 431,578 0.17 % 82,931 84,590 86,282 88,007 89,768 431,578 0.17 % Total Private Homeownership Sale Proceeds 260,000 260,000 260,000 260,000 260,000 1,300,000 0.51 % Ind. Parks Land Sales- Dubuque Industrial Center West 371,500 371,500 371,500 371,500 371,500 1,857,500 0.73 % 631,500 631,500 631,500 631,500 631,500 3,157,500 1.23 % Total Land Sales Special Assessments 184,524 30,000 430,000 120,000 70,000 834,524 0.33 % 184,524 30,000 430,000 120,000 70,000 834,524 0.33 % Total Spec. Assessment 69,262,412 53,256,222 1 50,966,804 40,621,920 1 41,676,849 1 255,784,207 100.0 % GRAND TOTAL Attachment 2 FISCAL YEAR 2023 - 2027 CIP BUDGET GROUPED BY STATE PROGRAMS The Fiscal Year 2023-2027 Capital Improvement Program totals $255,784,207. The following table summarizes expenditures for each State program by year. FISCAL YEAR 2021-2025 CIP CAPITAL IMPROVEMENT PROGRAM 5YEAR PERCENT PROGRAM FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 TOTAL OF TOTAL Public Safety 1,201,588 952,778 95,662 1,397,890 3,449,550 7,097,468 2.8% Public Works 20,574,057 15,155,620 14,825,885 4,099,616 4,581,088 59,236,266 23.2% Culture & Recreation 9,595,320 4,484,112 4,498,670 1,983,850 3,677,815 24,239,767 9.5% Community & Econ. Devl. 6,857,175 3,180,698 3,950,388 2,781,344 3,156,026 19,925,631 7.8% General Government 2,096,461 1,301,683 1,011,764 1,424,101 630,165 6,464,174 2.5% Business Type 28,937,811 28,181,331 26,584,435 28,935,119 26,182,205 138,820,901 54.3% TOTAL 69,262,412 53,256,222 50,966,804 40,621,920 41,676,849 255,784,207 100% The State Mandated Budget Program Areas and the City Departments/Activities that fall under each of these areas are as follows: Public Safety — Includes Police, Emergency Communication Center, Fire, Disaster Services, Health Services: Animal Control, Public Works: Flood Control, Housing: Code Inspection and Construction Services Public Works — Includes Airport, Public Works, Engineering Health and Social Services — Human Rights, Health Services, Purchase of Services Culture and Recreation — Parks, Civic Center, Conference Center, Recreation, AmeriCorps, Multicultural Family Center, Library, City Manager: Arts and Cultural Affairs Community and Economic Development - Economic Development, Housing and Community Development, Planning Services, Purchase of Services, City Manager: Office of Prosperity and Neighborhood Support General Government — Engineering: Facilities Management: City Hall/Annex Maintenance/Grand River Center Maintenance, City Council, City Manager, Public Information, Human Resources, Sustainability, City Clerk, Finance,Media Services, Legal, Information Services Business Type — Water, Water Resource & Recovery Center, Parking, Transit, Public Works: Landfill, Refuse, Salt Operations, Engineering: Sewer, Stormwater - xxviii - Attachment 3 FISCAL YEAR 2023-2027 CIP BUDGET HIGHLIGHTS BY CITY COUNCIL GOALS & PRIORITIES CITY COUNCIL POLICY AGENDA The City Council Policy Agenda includes items that require major policy direction decision and/or funding. It includes the City Council's Top and High Priorities. ROBUST LOCAL ECONOMY: DIVERSE BUSINESSES & JOBS WITH ECONOMIC PROSPERITY Priority: Childcare Initiative: Outcomes, Role, Partners, Direction & City Actions Priority classification: High Priority CIP projects supporting this Priority: This priority is supported through the proposed FY23 Operating Budget in the Economic Development department. VIBRANT COMMUNITY: HEALTHY & SAFE Priority: Equitable Poverty Prevention Plan Implementation Priority classification: Top Priority CIP projects supporting this Priority: This priority is supported through the proposed FY23 Operating Budget in the Office of Shared Prosperity & Neighborhood Support, Leisure Services, Legal, Human Rights, and Housing departments. LIVABLE NEIGHBORHOODS & HOUSING: GREAT PLACE TO LIVE Priority: Historic Building Rehabilitation/Preservation Priority classification: Top Priority CIP projects supporting this Priority: Greater Downtown URD Incentive & Rehab Programs (363), Downtown Rehab Grant Program (266), Central Avenue Housing Forgivable Loan (372), Neighborhood Reinvestment Partnership (386), Homeowner Rehabilitation Program (388), Rental Dwelling Rehabilitation Programs (391), Windows Replacement Program (393), Historic Preservation Revolving Loan Program (395), Historic Preservation Technical Assistance Program (398) Priority: Imagine Dubuque Implementation Priority classification: High Priority CIP projects supporting this Priority: Trail Planning (312), South Port Redevelopment Concept Plan (318), Connecting Downtown Destinations (326) Priority:West End Fire Station Priority classification: High Priority CIP projects supporting this Priority: Fire Station Expansion/Relocation (7), Fire department recommended staffing improvement packages FINANCIALLY RESPONSIBLE, HIGH-PERFORMANCE CITY ORGANIZATION: SUSTAINABLE, EQUITABLE, AND EFFECTIVE SERVICE DELIVERY Priority: City Information & Network Security Priority classification: Top Priority CIP projects supporting this Priority: Network Security Risk Assessment (406), Ransomware Defender and File Recovery (409), Data Center (410) Priority: Federal Infrastructure Program Preparation Priority classification: Top Priority CIP projects supporting this Priority: This priority is supported through the proposed FY23 Operating Budget in the Economic Development and Transportation Services budgets (grant writing) and CIPs in various departments. SUSTAINABLE ENVIRONMENT: PRESERVING & ENHANCING NATURAL RESOURCES Priority:Sewer System Infrastructure Upgrade (including Catfish Creek Sanitary Sewer System) Priority classification: Top Priority CIP projects supporting this Priority: Catfish Creek Sewershed Interceptor Sewer Improvements (257), Old Mill Road Lift Station & Force Main (253), Granger Creek Lift Station Improvements (254) Priority:Bee Branch Watershed Project: Next Steps Priority classification: High Priority CIP projects supporting this Priority: Bee Branch Interceptor Sewer Connection (252), Bee Branch Creek Gate & Pump Replacement (264), Flood Control Maintenance Facility (265), Green Alley Water Main Improvements (149) PARTNERSHIP FOR A BETTER DUBUQUE: BUILDING OUR COMMUNITY THAT IS VIABLE, LIVABLE & EQUITABLE (none) DIVERSE ARTS, CULTURE, PARKS AND RECREATION EXPERIENCES & ACTIVITIES Priority: Chaplain Schmitt Island Master Plan: Implementation & Phasing Priority classification: Top Priority CIP projects supporting this Priority: Admiral Sheehy Drive Storm Sewer Improvements (277), Schmitt Island Connector Trail (313), Schmitt Island Multi -Modal Access Plan (316), Connecting Downtown Destinations (326), Chaplain Schmitt Island Landscaping (22), Chaplain Schmitt Island Entrance Sign (23), Chaplain Schmitt Island Trail & Access Plan (24) Priority: Five Flags Center Direction Priority classification: Top Priority CIP projects supporting this Priority: Five Flags Building Improvements, Arena & Theater improvements (68-89) Priority: Comprehensive Parks Master Plan Priority classification: High Priority CIP projects supporting this Priority: Comprehensive Parks Master Plan (15) CONNECTED COMMUNITY: EQUITABLE TRANSPORTATION, TECHNOLOGY, INFRASTRUCTURE & MOBILITY Priority: Community Broadband Expansion Priority classification: High Priority CIP projects supporting this Priority: Traffic Signal Interconnect Conduit Replacement (330), Grandview Street Light Replacement (343), INET Fiber Replacement Buildout (344), Fiber OPtic Conduit - Misc (346), Fiber Infrastructure Management System (347), Broadband Acceleration & Universal Access (348), Citywide Fiber Cable Backbone Masterplan Implementation (350), Fiber Optic/Conduit Asset Maintenance & Documentation (407) Priority: Complete Streets Concept Implementation: 16th St/Elm St/14th St Railroad Overpass Project Priority classification: High Priority CIP projects supporting this Priority: 14th St Overpass Design (293), Water Main Replacements - Streets (162), 14th St Storm Sewer Reconstruction (269) MANAGEMENT IN PROGRESS AND MAJOR PROJECTS: The following are projects that were identified as the 2021 - 2023 Management in Progress and Major Projects by the City Council and are included in the 2023 CIP budget according to one of the Council's goals. 2021 - 2023 Management in Progress Management in Progress are items that were previously a City Council Goal and are now in the implementation phase. These items are included in the existing FY 2022 and proposed FY 2023 Operating budgets unless noted for additional funding. The items are identified under their corresponding City Council Goal: Robust Local Economy: Diverse Business & Jobs with Economic Prosperity • Airport Master Plan: Approval • Air Service Expansion to Western Hub • Business Development at the Airport: New Project • Downtown Parking Issues: New Downtown Parking Ramp (379), Smart Parking System (380), Municipal Parking Lot Maintenance (381), Port of Dubuque Ramp - Major Maintenance (382), Parking Ramp Major Maintenance Repairs (383) • Dubuque Brewing & Malting Building • Facade Loan Program • Opportunity Dubuque Job Training Program Vibrant Community: Healthy & Safe • CAD Connection to City Cameras Network: Traffic Signal Fiber Inteconnect Conduit Replacement (330) • Fire Department Accreditation • Police Department Reaccreditation • Re -Imagining Police • Traffic Camera System: ITS Traffic Control Equipment (p 341), Traffic Signal Vehicle Detection Conversion (p 342) Livable Neighborhoods: Great Place to Live Central Avenue Reinvestment Strategy: Greater Downtown Housing Creation Grant (363), Downtown Rehabilitation Grant Program (366), Central Ave Corridor Streetscape Master Plan Implementation (368), Central Ave Housing Forgivable Loan (372), Central Ave Streetscape Design 1-way to 2-way (295), Connecting Downtown Destinations (326) • Downtown Commercial Buildings Project: Downtown Rehabilitation Grant Program (366), Neighborhood Reinvestment Partnership (386), Downtown ADA Assistance Program (396) • Imagine Dubuque Implementation: Trail Planning (312), South Port Redevelopment Concept Plan (318), Connecting Downtown Destinations (326) • Port of Dubuque Residential Project (MERGE) • Safe Housing Initiative: Central Ave Housing Forgivable Loan (372), Neighborhood Reinvestment Partnership (386), Rental Dwelling Rehabilitation Programs (391) Financially Responsible, High Performance City Organization: Sustainable, Equitable, and Effective Service Delivery • ADA Compliance Transition: Funding for Phase 2 • Cartegraph OMS System Asset Management Expansion • Centralized Facility Maintenance & Management Department: Engineering Department Facilities Management CIPSs (352-362) • City Facilities/Work Space Analysis & Plan • City Legislative Advocacy Agenda 2022 • Citywide Compensation & Benefit Policy & Program • Digital Signatures • ERP Software Implementation • InVision Facility Management Software Implementation • Resident Satisfaction Survey • Socrata Software Implementation Sustainable Environment: Preserving & Enhancing Natural Resources • Bee Branch Pollinator Celebration • Emerald Ash Borer Program: Ash Tree Removal and Tree Replacement (p 53), Street Tree Program (55), Sidewalk Program - City Owned Property (303) • Lead & Copper Rule Compliance Water Sampling & Testing • Pollinator Habitat in Park System: Ecological Restoration (54) • Public Education on Bikeable/Walkable Dubuque • Renew DBQ Solar Program: Renew DBQ Low -Income Solar Pilot Project (401) • Sewer Infrastructure Asset Management • WRRC: Nutrient Trading & Funding Partnership For A Better Dubuque: Building Our Community That Is Viable, Livable, & Equitable • AmeriCorps Support of Grade Level Reading Initiative • Civic Action Plan & Civic Leaders Program • Greater Dubuque Development Corporation 5-year Funding Campaign Diverse Arts, Culture, Parks, and Recreation Experiences and Activities • AmeriCorps Potential Expansion Area • EB Lyons Center Partnership Development • Mystique Community Ice Facility: Direction: Leisure Services Ice Center CIPs (103-108) Connected Community: Equitable Transportation, Technology, Infrastructure & Mobility • Comprehensive Pavement Preservation Plan • Corporate Hangar Repair: Update Corporate Hangar Lighting to LED (182), Corporate Hangar Facilities Maintenance (186) • Downtown Parking Ordinance • Reconstruction of Airport Taxiway Alpha • Traffic Signal Synchronization/STREETS Program: Signalization Program (328) • Transit Vehicle Replacement: Transit Vehicle Replacement (375) • WiFi in Fixed Routes Major Projects Major Projects are projects that are underway and budgeted. Staff is implementing and providing updates to City Council. These items are included in the existing FY 2022 and proposed FY 2023 Operating budgets unless noted for additional funding. The items are identified under their corresponding City Council Goal: Robust Local Economy: Diverse Business & Jobs with Economic Prosperity • Dubuque Riverfront Master Plan (US Army Corps of Engineers) • Viking Cruise Destination Preparation Vibrant Community: Healthy & Safe (none) Livable Neighborhoods: Great Place to Live • Hendricks Feed Site Parking Ramp: New Downtown Parking Ramp (379) • Lowell Street Retaining Wall Financially Responsible, High Performance City Organization: Sustainable, Equitable, and Effective Service Delivery • Engine House No 1 Remodel Project: Build Out of Engine House 2nd Floor (354) Sustainable Environment: Preserving & Enhancing Natural Resources • Royal Wood Drive Water Tank Improvement • SCADA Overhaul: SCADA & Communications Infrastructure Improvements (147), Lift Station SCDA Improvements (174) • Water Lines Extension - Southwest Arterial: Southwest Arterial Water Main Extension (141) - xxxiii - Partnership For A Better Dubuque: Building Our Community That Is Viable, Livable, & Equitable (None) Diverse Arts, Culture, Parks and Recreation Experiences and Activities • Comiskey Park Renovation: Reimagine Comiskey (25) • Eagle Valley Subdivision Park • English Ridge Subdivision Park • Grand River Center: Upgrade Projects: Conference Center CIPS (109-126) Connected Community: Equitable Transportation, Technology, Infrastructure & Mobility • Chavanelle Road Hike/Bike Trail • Dupaco/Roshek Parking Project: Smart Parking System (380) • JFK Sidewalks Project: Construction + Assessment • Northwest Arterial Upgrade (IDOT): • Roundabouts [3]: East-West Corridor Capacity Improvements (283) • Washington Street Improvements (7th to 9th) Attachment 4 Source of Funds and Important Details The Fiscal Year 2023-2027 CIP presents a financial plan that reflects a $68,771 general fund property tax levy supported annual debt service for the FY 2010 purchase of a replacement pumper truck ($1,035,000) and the FY 2016 franchise fee litigation settlement judgment bond ($2,800,000). No other borrowings included in the Fiscal Year 2023-2027 CIP utilize a debt service levy. It is anticipated that other borrowing from non -utility funds can and will be minimized by using other sources of funds such as future DRA annual distributions of operating surplus and sales tax revenue. The following important details are about the source of funds: UTILITIES Stormwater The Stormwater Utility was formed on July 1, 2003, to update and expand the City's aging infrastructure, comply with the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit, and implement the various elements of the 2001 Drainage Basin Master Plan (amended in 2013), which outlined improvements in both the Catfish Creek and Bee Branch watersheds. The City has been able to garner support from local, state, and federal partners with over $163 million in outside funding to help offset the cost of the overall $237 million project. Since 2001, the City has made steady progress on the various phases of the project. In January 2016, the State was awarded $95.7 million in HUD National Disaster Resiliency Competition grant funds (HUD NDR Grant). Per the award, the City of Dubuque is to receive $8.4 million for a comprehensive "Bee Branch Healthy Homes Resiliency Program" to help residents address residual impacts from the flooding experienced within the Bee Branch Watershed. The City also to received a $23.1 million for design and construction of storm water infrastructure improvements associated with the Bee Branch Watershed Flood Mitigation Project. In October of 2016, the City Council adopted Resolution 362-16. It authorized the execution of the contract with the Iowa Economic Development Authority in order for the City to utilize the $23,309,600 HUD NDR Grant funds for the administration, design, and construction of Bee Branch Watershed Flood Mitigation Project improvements. Per the contract, the City must contribute the previously budgeted $21,600,000 for the infrastructure improvements as local, direct leverage. The City was also to provide $38,219,000 in supporting leverage, monies that the City previously budgeted for and has been utilizing to construct the Lower Bee Branch Creek Restoration Project, the Upper Bee Branch Creek Restoration Project, and the SRF Green Alleys constructed over the past couple of years which was accomplished by the end of FY2020. Finally, in order to receive and utilize the funding, the City was required to construct all the improvements by September 30, 2021. In April of 2020 an additional $1.77 million was made available bringing the total available for infrastructure improvements to $24.87 million. In addition, the deadline to complete the work was extended to June 30, 2022. The HUD NDR Grant infrastructure improvements are as follows: Upper Bee Branch Creek Restoration Railroad Culvert Improvements involving the installation of culverts from the Lower Bee Branch Creek, through Canadian Pacific Railway property, to the Upper Bee Branch north of Garfield Avenue; 22nd Street/Kaufmann Ave Storm Sewer Improvements involving the installation of a large diameter storm sewer from 22nd & Elm up Kaufmann Avenue towards the Kaufmann & Kane intersection as funding allows. The work includes inlets and local sewer connections to the storm sewer and the complete reconstruction of the street and other underground utilities along street right-of-way corridor. 17th Street/W. Locust Street Storm Sewer Improvements involving the installation of a 96-inch diameter pipe from the Lower Bee Branch Creek through the Canadian Pacific Railway tracks to 17th Street then to the west along 17th Street and finally west along W. Locust Street towards Rosedale Avenue as funding allows. The work includes inlets and local sewer connections to the storm sewer and the complete reconstruction of the street and other underground utilities along street right-of-way corridor. In order to ensure that the improvements related to the grant are completed by the deadline, adjustments were necessary to the funding schedule previously established by Resolution 176-15 for other phases of the Bee Branch Watershed Flood Mitigation Project (Flood Mitigation Project). The table below compares the funding schedule for the various phases of the Flood Mitigation Project established through the adoption of Resolution 176-15 to an updated, adjusted schedule that will ensure adherence to the terms of the Contract. The following chart shows a Comparison of the funding schedule for the various phases of the Flood Mitigation Project established through the adoption of Resolution 176-15 to an updated, adjusted schedule that will ensure adherence to the terms of the HUD National Disaster Resilience Competition Grant Contract: Improvements Schedule Established by Res. 176-15 Adjusted Construction Schedule Milestones Status Flood Mitigation Gate & Pump Replacement 2015 2022-2023* Under Design Lower Bee Branch Creek Restoration 2015 2016-2017 Complete Upper Bee Branch Creek Restoration 2015-2016 2015-2017 Complete Bee Branch Creek Railroad Culverts 2019 2019-2022 Under Construction North End Storm Sewers 2017 2028-2030 22nd Street Storm Sewer 2017 2017-2021 Complete from Elm to N. Main Flood Mitigation Maintenance Facility 2015-2017 2024-2028 Site Clean Up Underway 17th Street Storm Sewer 2019-2021 2018-2021 Complete from Elm to Heeb Water Plant Flood Protection 2022-2023 2029-2030 Pervious Pavement Systems (Green Alleys) j 2023-2040 1 2015-2040 j 80 of 240 Complete *In order to secure $2.5 million in grant funding from the U.S. Economic Development Administration, the Flood Gates were delayed from FY 2017 The adopted Fiscal Year 2023-2027 Capital Improvement Program Budget includes $12,586,470 for the Flood Mitigation Gate & Pump Replacement as part of the Bee Branch Creek Restoration Project (Phase 5 of the Bee Branch Watershed Flood Mitigation Project). The adopted Fiscal Year 2023-2027 Capital Improvement Program Budget includes $255,000 for the Flood Control Maintenance Facility as part of the Bee Branch Creek Restoration Project (Phase 9 of the Bee Branch Watershed Flood Mitigation Project). Fiscal Year 2023 will be the sixteenth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low -to -moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2023 Stormwater User Fee is proposed to increase from $8.85 per SFU to $9.00 per SFU, a 1.69% increase, consistent with Ordinance 16-14 passed on March 5, 2014. FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Adopted Per Ordinance 21-12 $8.50 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 Adopted Per Ordinance 16-14 $6.38 $6.81 $7.27 $7.76 $8.29 $8.85 $9.00 $9.00 Adopted Per Ordinance 21-20 $- $- $- $- $- $8.29 $8.29 $8.29 Adopted Per Ordinance 10-21 $— $— $— $— $— $— $8.85 $8.85 Proposed FY23 % Decrease From Ordinance 21-12 -24.94% -24.33% -19.22% -13.78% -7.89% -7.89% -1.67% 0.00% * The recommended rates for FY16 through FY20 reflect the rates previously established by Ordinance 16-14 following the State's approval of $98.5 million in State Flood Mitigation state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. Ordinance 21-12 was the ordinance adopted prior to the City receiving the Flood Mitigation grant. Ordinance 21-20 was adopted in response to the COVID-19 pandemic. - xxxvii - Water Water revenue represents a portion of the monthly water bill that goes for maintenance, repair, replacement and improvement of the Eagle Point Water Plant and water distribution system on a pay-as-you-go basis for all projects except the major extensions. The annual payment to the depreciation fund in Fiscal Year 2022 is $400,000. The Fiscal Year 2023-2027 CIP anticipates $4,742,253 in Fiscal Year 2023, $3,594,480 in Fiscal Year 2024, $3,237,336 in Fiscal Year 2025, $3,263,922 in Fiscal Year 2026, and $3,200,000 in Fiscal Year 2027. Water State Revolving Fund Loans will be used to finance sewer projects in FY 2023-2027 as follows: $0 FY 2023; $0 FY 2024; $1,425,000 FY 2025; $2,775,000 FY 2026; and $8,694,000 FY 2027. The debt service related to the total $12,894,000 State Revolving Fund Loans over the 5- years will be paid from water fees and offset by reduced payments to Depreciation (Construction Fund). The State Revolving Fund Loans support Water Main Replacements, Kennedy Road to Tanzanite Drive Connection (Zone 3 to 4) with Pump Station, Water System Improvements Zone 3, Swiss Valley/Highway 20 Interchange Multiple Phases, IDOT Highway 20/Dodge Street Improvements (Old Highway Road to Crescent Ridge), Old Davenport Road Water Main Extension/Pump Station, Tamarack Park Drive/wood Gate Drive Frontage Road Water Main Extension, and Chesterfield Drive Water Main Extension.. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. 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 Economic Development, Planning, Workforce Development, 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. The Water Fund's share of the City's administrative overhead is 18.75%. In FY 2023, the Water Fund will only support 2.95% of administrative overhead. The water fees in FY 2023 are recommended to increase 5.0%; 5.0% for operating needs and 0% for capital needs. - xxxviii - Sewer Sewer revenue represents a portion of the monthly sewer bill that goes for the maintenance, repair, replacement and improvement of the Water & Resource Recovery Center Plant; lift stations, and sewer lines on a pay-as-you-go basis. The annual payment to the depreciation fund in Fiscal Year 2022 was $700,000. The Fiscal Year 2023-2027 CIP anticipates $412,019 in Fiscal Year 2023, $179,400 in Fiscal Year 2024, $1,400,000 in Fiscal Year 2025, $1,600,000 in Fiscal Year 2026 and $2,577,230 in Fiscal Year 2027. Sanitary Sewer State Revolving Fund Loans will be used to finance sewer projects in FY 2023-2027 as follows: $5,051,897 FY 2023; $8,839,852 FY 2024; $13,346,822 FY 2025; $17,047,271 FY 2026; and $0 FY 2027. The debt service related to the total $44,285,842 State Revolving Fund Loans over the 5-years will be paid from sewer fees and offset by reduced payments to Depreciation (Construction Fund). The State Revolving Fund Loans support such projects as Granger Creek Lift Station Improvements, Grove Terrace Reconstruction, Old Mill Road Lift Station and Force Main, Cedar and Terminal Mains and Lift Station, Catfish Creek Sewershed Interceptor Sewer Improvements, Final Clarifier, Phosphorous Removal, Sidestream Nitrogen Removal, Boiler #2, Struvite Control System, Bar Screen Replacement, RAS Pump Replacement, Sewer Clean Jet Vac Machine, and Replacement of main Line CCTV Inspection Unit.. The sewer fees in FY 2023 are recommended to increase 9.0%; 9.0% for operating needs and 0% for capital needs. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. 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 Economic Development, Planning, Workforce Development, 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. The Sanitary Sewer Fund's share of the City's administrative overhead is 18.75%. In FY 2023, the Sanitary Sewer Fund will support 18.75% of the administrative overhead. Parking Parking revenue represents three primary sources: (a) the balance of prior year depreciation funds set aside for the maintenance and repair of parking ramps; (b) future payments to the depreciation fund for repair and maintenance of the parking system (there are no budgeted payments to the depreciation fund in future years due to using existing cash balance); and (c) interest income. A $18.5 million Greater Downtown TIF borrowing is anticipated in FY 2023-2027 for additional downtown parking ramp and other downtown projects. New debt service will be paid from the Greater Downtown TIF fund. The Greater Downtown TIF will support parking related debt in the downtown as follows: $416,304 in FY 2023; $84,000 in FY 2024; $373,634 in FY 2025; $187,000 in FY 2026; and $0 in FY 2027. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. 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 Economic Development, Planning, Workforce Development, 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. The Parking Fund's share of the City's administrative overhead is 6.93%. In FY 2023, the Parking Fund will support 1.86% of the administrative overhead. -xl- Solid Waste Collection Activities Solid waste collection activities revenue represents a portion of the monthly refuse bill that goes for the purchase of solid waste collection vehicles. The annual payment to the depreciation fund in Fiscal Year 2022 was $325,000 and will be $550,000 in FY 2023, $407,454 in FY 2024; $203,004 in FY 2025; $239,543 in FY 2026; and $355,732 in FY 2027. The Solid Waste Collection will support solid waste related debt for solid waste collection vehicles as follows: $0 in FY 2023; $55,000 in FY 2024; $214,269 in FY 2025; $106,000 in FY 2026 ; $0 in FY 2027. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. 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 Economic Development, Planning, Workforce Development, 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. The Solid Waste Fund's share of the City's administrative overhead is 18.75%. In FY 2023, the Solid Waste Fund will support 18.75% of the administrative overhead. The solid waste collection fees in FY 2023 are recommended to increase 0%. -A- GENERALFUND The current revenue amount of $602,000 (0.24% of CIP Total) during the five-year period represents $55,000 in golf funds for improvements to the Bunker Hill Golf Course, $35,000 in Historic Preservation Loan repayments, $150,000 in Rental Dwelling Rehab Repayments, , $200,000 in Washington Neighborhood Loan Repayments, $140,000 in insurance and other reimbursements, and $22,000 in repayments to the Homeownership Loan Program. LOCAL OPTION SALES TAX (LOST) The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 20 percent of the proceeds would be used for: (a) the upkeep of City -owned property such as sidewalks, steps, storm sewers, walks, curbs, traffic signals and signs, bridges, and buildings and facilities; (b) transit equipment such as buses; (c) riverfront and wetland developments; and (d) economic development projects. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as "Sales Tax (20%)" totals $10,233,740 and represents 4.00% of the total CIP. The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 30 percent of the proceeds would be used to: (a) reduce street special assessments by at least 75 percent; and (b) maintain and repair streets. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as "Sales Tax/Street Projects (30 percent)" and totals $19,950,918, or 7.80% of the total CIP. GAMING DRA payments represent 0% in FY 2023 of the projected gaming taxes, rent, and admissions from the race track, slots and riverboat operations ($774,220 or 0.30% of the total CIP) over the five-year period. When practical in future years, additional revenues will be moved to capital from operating. To the extent that there is any revenue shortfall in future years, capital projects will be eliminated or deferred. DRA distribution revenue projections ($7,877,307 or 3.08% of the total CIP) are discounted consistent with the adopted budget guidelines by 5% in FY 2025, 10% in FY 2026 and 15% in FY 2027. On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, In addition, the distribution of net profit is now split three ways between the City, charities, and the Schmitt Island Master Plan Implementation from a two-way split between the City and charities. The amended lease has an expiration date of December 31, 2036. In calendar year 2021, gross gaming revenues were up 43.0% for the DRA and the Diamond Jo was up 52.1 % as compared to calendar year 2020. In calendar year 2021, the DRA showed increases in hotel room revenue, food and beverage sales, and other revenue as compared to calendar year 2020. The Iowa 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 $761,860 in Sports Book revenue and $10,764,497 in Sports Betting handle during 2021. With an amended lease, the City began receiving 0.5% of the handle from Sports Betting in FY 2021. FEDERAL FUNDING Community Development Block Grant (CDBG) The Fiscal year 2023-2027 CIP anticipates that Community Development Block Grant (CDBG) funds will be $595,000 in FY 2023; $465,000 in 2024; $445,000 in FY 2025; $445,000 in FY 2026; and $295,000 in FY 2027 (0.88% of the total CIP). CDBG is budgeted at the same funding level as FY 2022. Federal Aviation Administration (FAA) The FAAfunding of $10,677,468 (4.17% of the total CIP) provides 90 percent match on most airfield related improvements. The Fiscal Year 2023-2027 budget includes reconstruct taxiway A and a Pavement Condition Study. Federal Airport American Rescue Plan Act Funds (0.54% of Total CIP) Federal Airport American Rescue Plan Act Funds awarded in FY 2022 with funding budgeted as follows: $480,000 in FY 2023; $624,993 in 2024; and $283,000 in FY 2025. The Fiscal Year 2023-2027 budget includes Reconstruct Taxiway Alpha, Corporate Hangar Facilities Maintenance, FBO Hangar Floor Replacement, Terminal Geothermal Heat Pump Replacement, and Pavement Condition Study. Federal American Rescue Plan Act Funds (4.91% of Total CIP) Federal American Rescue Plan Act Funds awarded in FY 2022 with funding budgeted as follows: $10,948,075 in FY 2023; $1,561,288 in 2024; and $50,731 in FY 2025. The Fiscal Year 2023-2027 budget includes Fire Ladder and Pumper Replacement, Fire Ambulances, Solid Waste Collection Vehicle Upgrades, Citywide Fiber Cable Backbone Masterplan Implementation, Bee Branch Interceptor Sewer Connection, Old Mill Road Lift Station & Force Main, Dubuque Industrial Center McFadden Farm - South Heacock Road Construction, and Development Dubuque Industrial Center: Crossroads. Federal Assistance Federal Assistance funding of $3,135,700 (1.23% of the total CIP) includes EDA, EPA, Infrastructure grants, and other federal grants. The Fiscal Year 2023-2027 budget includes Airport Construct Solar PV System, Public Lead Line Water Main Replacements, Bee Branch Gate and Pump, Bee Branch Creek Trail: 16th to 9th, and South Port Master Plan Implementation. Federal STP Funds Federal STP funding of $1,300,000 (0.51% of the total CIP) includes DMATS STP funds. The Fiscal Year 2023-2027 budget includes North Cascade Road. STATE FUNDING Road Use Tax Road Use Tax Funds (RUTF) of $2,749,858 (1.08% of the total CIP) over five years represents the balance of annual payments not required for support of the operating budget and funds that had been reserved to finance high priority transportation projects. The Iowa Department of Transportation (IDOT) provides annual projections on the amount of RUTF the City of Dubuque will receive over the next five years based on a per capita amount. The State Road Use Tax Fund consist of revenues from fuel tax, vehicle registration fees, use tax, driver's license fees and other miscellaneous sources and is distributed to cities on a per capita basis. It should be noted that in FY 2010, the Iowa Department of Revenue increased Road Use Tax Funds (RUT) as a result of higher vehicle registration fees passed into law in 2008. The gas tax was increased ten cents beginning in February 2015. The city is estimated to receive $38,767,638 for FY 2023-2027. Sales Tax Increment Revenue The City secured a $98.5 million grant through the State of Iowa Flood Mitigation program funded by 70% of the sales tax increment revenue received from the State of Iowa's 5% portion of sales tax received from sales in the City of Dubuque. This revenue will fund the debt service payable on Sales Tax increment Revenue bonds and Iowa Finance Authority State Revolving Fund Loans issued for the Flood Mitigation project known as the Bee Branch Watershed Project. In the five year capital program, $8,561,470 of sales tax increment revenue will fund pay-as-you-go projects related to the Bee Branch Watershed project. Other State Grants (4.82% of Total CIP) State funding includes Iowa Department of Transportation Funding for street projects and trails and Historic Preservation Surveys and Regulations of $12,340,000 are anticipated over the five-year program. State transit funding includes $37,492 over the five-year program for bus stop improvements. Iowa Finance Authority funding of $706,415 is anticipated over the five-year program for the Housing Department's Housing Trust Fund to provide permanently affordable housing or assistance to nonprofit organizations providing the same. TAX INCREMENT FINANCING (TIF) Dubuque Industrial Center West TIF District In FY 2006 and 2007, Tax Increment Financing (TIF) funds were committed towards abatement of the 20 year G.O. Bond issue for a Dubuque Industrial Center West (DICW) expansion and Chavenelle Road extension project, thereby delaying payback to the general fund for prior year development costs. In FY 2007, the TIF assessed values increased, allowing for additional increment for projects and cost recovery to continue. In FY 2017, the TIF assessed values increased again from a commercial 12% state equalization order. The FY 2023-2027 CIP includes $1,857,500 to provide funding for the new campaign by the Greater Dubuque Development Corporation to improve the economy in Dubuque and $1,042,303 to provide funding for Development Dubuque Industrial Center: Crossroads. Annexation Initiatives As annexation and development continues, the City has taken the following initiatives to provide services to annexed areas: -AV- Additional Police Officers (Operating Budget) With the Police Department's crime strategy, Territory Accountability Design, in full implementation, the department projected the need to increase Dubuque's current six patrol territories to seven as new areas of the city are developed. To add a seventh territory, five additional police officers were needed. Partly in response to this need, the Police Department developed a Sworn Officer Plan which proposed the addition of 15 sworn police officers over a five-year period, with the first five (four Police Officers and one Police Corporal acting as a Section 8 Investigator) approved in December 2007, four more were approved in FY 2009, three more were approved in FY 2010, two more were approved in FY 2011 and one more was approved in FY 2012. The plan's staff increases created sufficient staffing to establish an additional patrol territory. In FY 2019, an additional sworn police officer was added, an existing position was promoted to Captain and one Corporal position was eliminated in order to create a Specialty Unit Commander. The Fiscal Year 2020 budget approved the expansion of the Dubuque Police Department School Resource Officer Program. To spread the expenses over time, three SRO's were to have been added over three consecutive years: Fiscal Year 2020, Fiscal Year 2021, and Fiscal Year 2022 budget. However, the expansion was frozen in FY21 due to the pandemic causing the final position to be added in FY23 instead of FY22 as originally planned. Even with the frozen position, the Dubuque Community School District (DCSD) will still gradually pay 50% of the salary of the existing SRO Lieutenant, and the DARE Officer. This DCSD payment will be implemented in increments of 45% of 50% reimbursement in year 1, or Fiscal Year 20, 75% of 50% reimbursement in year 2, or Fiscal Year 21, and 100% of 50% reimbursement in year 3, or Fiscal Year 22. Fire Station and Additional Firefighters/Paramedics An additional west end fire station is currently projected to be designed in FY 2026, but may be delayed. This station would be approximately 10,000 square feet and house two response apparatus, plus storage for other reserve units. The City of Dubuque currently has an annexation study and not an annexation plan. However, addition of this fire station and associated ambulance and firefighting response capability and capacity positions the City will develop an annexation plan and begin the process of annexation in the near future. The City Development Board, that approves annexation expects services to be provided within 3 years of annexation. For a new station, operating costs include insurance, utilities, equipment, maintenance, furniture, and the cost of twelve new employees. In FY2020, one (1) new employee was added, one (1) additional new employee was added in FY 2021 as well. The position that was to be added in FY2022 was delayed. In FY2023, 4 new employees were added, and the remaining employees will be added in future years to reach a total of 12 new positions. In addition, 3 firefighter/paramedic positions were added in FY2023 to provide one additional staff member on each of the three duty shifts. The additional ambulance for the additional fire station will be purchased n FY2023. The current minimum staffing per shift is 22, with 28 personnel assigned to cover leave. The additional personnel will reduce the need for overtime as each shift will have more positions available to cover vacations and other leave. Additional Snow Plow Drivers and Snow Plow Route (Operating Budget) Dubuque's expansion also increased the number of streets and roads that must be maintained by the City's Public Works Department. In order to maintain the current level of street maintenance, street cleaning, and snow and ice control to all areas of the city, the Public Works Department was approved for the addition of a snow plow driver in FY 2009 and another is expected to be requested in a future year. Two drivers are needed to staff a route 24 hours a day in a snow event. The Public Works Department plans to create another snowplow route with these two employees as annexation and development dictates. In the warm months, this position will be assigned to the Leisure Services Department to maintain City parks and landscaping in the Washington Neighborhood, Port of Dubuque, Iowa Street and the Locust Street connector. In Fiscal Year 2009, the Public Works Department also began using Refuse, Recycling and Yard Waste Collection employees at the end of their collection routes and on overtime to assist in snow removal duties. The City has also developed a plan to use personnel and equipment from other City departments to go from 22 -AV- pieces of snow removal equipment to 32 pieces of snow removal equipment in a snow storm that exceeds 5 inches. With the recommendation to eliminate full-time positions in the Engineering Department and create one part-time position, there will be less opportunity to supplement the snow plowing effort. Water and Sanitary Sewer Service The City is in the process of extending sanitary sewers and water service into new development areas or recently annexed areas as part of pre - annexation agreements. Requests have been received for sanitary sewer and water service on North Cascade Road near Highway 20 and for water service further North on John F. Kennedy Road. In 2003, a new water main was activated from Highway 20 north on the east side of the Northwest Arterial to John F. Kennedy Road then west to a new 1.25 million gallon water tower located at the Dubuque Soccer Complex. By constructing this tower and with this water main extension in the fourth pressure zone of the City's water distribution system, it allowed growth to take place for residential, commercial and industry to the west of the community. To date, both sanitary sewer and water service have been extended through the Dubuque Industrial Center West, along Seippel Road to the north edge of the Callahan subdivision. Additional funds are available to extend water and sewer service to the 643 acres annexed and to other areas under consideration for annexation. The City has spent in excess of $2 million to replace much of the North Fork Catfish Creek Sanitary Sewer Line. The City extended the Granger Creek Interceptor sewer and the public water main from the Technology Park South along highway 151/61 to the north side of the Dubuque Regional Airport. The Granger Creek sanitary sewer and water main extension provided immediate sanitary sewer and water services to the Dubuque Regional Airport and portions of the annexation areas that are adjacent to the highway 151/61 corridor. Greater Downtown TIF District This district was formally the Downtown and Ice Harbor TIF districts but now have been combined to the Greater Downtown TIF district. Many projects, which are City Council priorities, are able to move forward due to the availability of Greater Downtown TIF revenue due to continued growth to further sustain a rejuvenated downtown and port of Dubuque. The following are projects included in the FY 2023-2027 CIP: Five Flags Building Improvements (page 68) — This project ($6,000,000) provides funding for improvements to the building (arena, theater, lobby areas, exterior) and its equipment should a bond referendum for another scenario not pass. Civic Center Arena Air Conditioner Replacement (page 74) - This project ($628,000) provides for replacement of arena air conditioning units; Roof Top Units (RTU) 1-7, 9 and 11. Eight air conditioning units were installed in 2005 and the other was installed in 1997. Civic Center Theater - East Exterior and Interior Restoration (page 88) - This project ($30,000) provides for engagement of a qualified historic preservation firm along with building envelope thermal and moisture protection specialist and structural engineer to document the current condition of the east exterior and interior adjacent to it of the historic Five Flags Theater. Port of Dubuque Welcome Sign (page 102) - This project ($30,000) provides for the design, development, and installation of an 8 foot by 200 foot "Welcome to Dubuque" sign located on the flood wall near the Ice Harbor flood gates. There is currently no signage along the river to let patrons know that they have either arrived or are passing by Dubuque. Such a sign on the wall would not only be a welcoming visual for those visiting on cruise ships or other vessels but can create awareness on the river that this is an area they may approach in order to visit the City. This sign could also indirectly filter boat traffic into the Port of Dubuque Marina to dock and/or fuel. Included in this CIP would be the purchase and installation of solar lighting with a 5-year replacement cost of $3,500. Grand River Center Replace Carpet (page 109) - This project ($466,000) provides for the replacement of carpeting at the Grand River Center. Grand River Center Roof Restoration (page 95) - This project ($700,000) provides for restoration of the roof on the Grand River Center. The roof was installed in 2002 and restoration is critical to prevent expensive damage if the roof begins leaking. 14th Overpass Design (page 293) - This project ($727,000) provides for construction of a Complete Streets railroad overpass along the 14th Street corridor connecting Washington Avenue and Cedar Street, which will provide automobiles, pedestrians and bikers with unimpeded access to the Kerper Industrial Park, Dove Harbor Industrial Area, redeveloped 16th Street corridor, tourism and recreational amenities on Chaplain Schmidt Island, and U.S. Route 61/151 into Wisconsin. Increased maintenance costs would result from periodic bridge inspections required. These costs are typically $6,000 every two years. Central Avenue Streetscape Design 1-way to 2-way (page 295) - This project ($400,000) provides engineering design funds to design the improvements outlined in the Central Avenue Master Plan yet to be adopted by the City Council. The master plan calls for pedestrian improvements on Central Avenue from 11th to 21st Streets. Work includes new sidewalks, street lighting, transit stops and a key feature at 18th and Central. South Port Redevelopment Concept Plan (page 318) - This project ($84,500) provides for the creation of a clear and consolidated redevelopment vision for the South Port where all existing property owners entering into a partnering agreement thus providing prospective developers a high level of assurance that all key players are in agreement and on -board with proceeding with a proposed redevelopment concept. Blum Site Utilization (page 323) - This project ($92,500) provides planning for a series of outdoor family orientated recreational amenities, formal recreation programming for both youths and adults, and public indoor spaces where neighbors can come together, get to know one and other and enjoy each other's company. Greater Downtown Street Lights (page 327) - This project ($250,200) provides funding for replacement of the existing 30-foot white streetlights located in downtown Dubuque. Currently, there are approximately 60 white streetlights remaining. The project would replace all remaining white poles and install lighting controllers with meters. In certain cases, these would be replaced with historical streetlights. Many of the streetlights in the downtown area were installed in early 1950's. This program would promote the use of high efficiently, long life LED street lighting throughout the City of Dubuque which saves energy and operating expenses. Downtown Security Camera Program (page 334) - This project ($150,000) provides equipment, installation, and software licenses for the placement of fixed cameras ($2,500 each) installed near roadways, alleys, and signalized intersections in Downtown Dubuque. Federal Building Renovation (page 352) - This project ($43,000) provides funding in FY 2023 repair the front entry stairs. Greater Downtown Housing Creation Grant Program (page 363) - This program ($1,500,000) provides grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District. Tax increment proceeds are used to capitalize the pool of funds for these grant. The program provides grants up to $10,000 for each new housing unit created in the District. The program creates affordable, quality rental housing units for our workforce. Downtown Rehab Grant Program - Includes Central Avenue, Historic Millwork District and Washington Neighborhood (page 366) — This program ($1,000,000) grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District. Tax increment proceeds are used to capitalize the pool of funds for these grants. This grant program provides a 1:1 match for eligible expenses for improvements to fagades, as well as accompanying costs for financial consulting and planning & design work for the project. This grant program receives the most inquiries and interest of all Economic Development Department's programs. The program promotes the redevelopment of the downtown, maintains its historic appeal, and complements grant/loan programs provided by our partners at Dubuque Main Street. Minority -Owned Business Microloan Initiative (page 367) - This project ($250,000) provides loan loss reserve and/or interest rate "buy down" for eligible minority business owners/entrepreneurs seeking a microloan from Iowa Microloan, a 501(c)3 that provides loans of $5,000 to $50,000 to small businesses in Iowa having difficulty obtaining a loan from a traditional lender. With approximately $50,000 in local funding to provide loan loss reserve and interest rate buy down funds, the City will be able to leverage $200,000 in loan funds for local entrepreneurs/small business owners. Central Avenue Streetscape Master Plan Implementation (page 368) - This project ($175,000) provides for the implementation of priority actions in the Central Avenue Streetscape Master Plan. The funds allocated would be used to support infrastructure and streetscaping priority improvements justified in the master plan. The Central Avenue corridor is part of the Washington Neighborhood Revitalization Plan and includes the area between Central Avenue between 11th and 22nd streets. Included in this strategy is the redevelopment and reinvestment in residential and commercial areas in the neighborhood. Some public infrastructure improvements have already been initiated and the Central Avenue corridor is beginning to see private investment in building improvements and business location. Green Space Historic Millwork District (page 371) - This project ($400,000) provides for an initial step of removing the temporary parking lot and seeding the area. Further planning is needed to identify the exact use and design of this area, to be determined during an updating of the master plan through public engagement. Central Avenue Housing Forgivable Loan (page 372) - This project ($750,000) provides for use along the Central Avenue Corridor between 11th Street and 22nd Street. For this program, a unit could be considered eligible even if recently occupied if the project involves a substantial rehabilitation of the unit and buildings. The program provides a loan, forgivable at the 10-year mark, if the developer has maintained the terms of the agreement. Projects can not discriminate based on the tenant's source of income. Parking Ramp Condition Assessment and Maintenance Plan (page 378) - This project ($136,000) provides for completing a structural condition assessment and preventative maintenance plan by a licensed professional engineer for each parking structure that the city owns. - xlviii - New Downtown Parking Ramp (379) - This project ($17,426,822) funds the construction of a new downtown parking structure. The final site location will be selected based on best serving upcoming, mixed -use redevelopment in the Historic Millwork District and downtown Main Street areas. The project schedule requires the parking structure to be functional by December 2024. This project will be funded with Greater Downtown TIF G.O. Bond funds. Smart Parking System (page 380) - This project ($1,106,000) provides funds for the installation of head end equipment that will form the backbone of a phased installation of smart parking technology eventually to be deployed at all parking garages and public parking lots in Dubuque over the next several years. A smart parking system will provide parking customers with on -demand space availability and thus maximize traveler convenience, reduce travel time and reduce congestion in the downtown area. Municipal Parking Lot Maintenance (page 381) - This project ($48,000) provides for the maintaining the surface of 14 off-street municipal parking lots. This project also includes signage, landscaping, and screening improvements to surface lots. Parking Ramp Major Maintenance Repairs (page 383) - This project ($245,000) provides for complete additional deck, floor beam, and column repairs in both parking ramps and to replace the stairs to the top deck of the Locust Ramp. Washington Neighborhood Home Purchase Program (page 387) - This project ($250,000) supports and encourages homeownership in the Washington Neighborhood. The program operates under the oversight of the Housing Trust Fund Committee and is capitalized by annual grants received from the Iowa Finance Authority (IFA). IFA requires a match for the program and the City provides IFA Trust Match of $50,000 from the Greater Downtown TIF (GDTIF). The primary purpose is to complement housing assistance provided through the CDBG program by providing loans to low -to -mod income homeowners and buyers in the Washington Neighborhood and for households earning less than 30% MI are eligible to purchase any property within the City limits. Downtown ADA Assistance Program (page 396) - This project ($150,000) provides assistance to residents and businesses to ensure facilities in the Downtown Urban Renewal Area are fully accessible and inclusive to all persons regardless of abilities. This includes parking lots, retail and wholesale stores, restaurants, cafes, taverns, gas stations, public buildings, lodging, schools, parks, and entertainment venues. The program is designed to assist businesses with the cost of becoming ADA compliant. Qualified applicants can receive up to 50% of the cost of the project from the City of Dubuque, at a maximum amount of $5,000 per property. Downtown Urban Renewal Area Non -Profit Weatherization Improvements Assistance (page 397) - This project ($500,000) provides funding for matching grants to assist non -profits in the Greater Downtown TIF area to make energy efficiency improvements to their buildings, including weatherization measures, HVAC system upgrades, and other work to decrease their utility bills. This reduction in annual operating costs will allow non -profits to invest more funds in achieving their organization's mission. Energy efficiency improvements not only result in financial savings to the organization but will also help to meet the 50% by 2030 Community Climate Action & Resiliency Plan goals approved by City Council in 2013. The program builds on the success of the Energy Efficiency Revolving Loan Fund (EELF) that is currently available to private businesses, which was created using funds the City received from the 2009 American Recovery & Reinvestment Act, and the Grants to Green program, a Community Foundation of Greater Dubuque program which invested over $1.2 million in energy efficiency projects for non -profits. Ongoing community conversations have demonstrated a continued need to fill the gap between available utility rebates and the amount non -profits are able to pay for energy efficiency improvements. Similar to the existing EELF, non -profits may be able use funds for renewable energy installation, if all reasonable efficiency improvements have been made, in order to further reduce their utility costs and reduce their negative environmental impact. Additional criteria and an application will be developed. North Cascade Housing TIF District In FY 2014 the City created the first housing TIF district in the Timber Hyrst subdivision off of North Cascade Road. This is a ten year TIF which requires at least 38.1 % of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1 %. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. Assistance for Homeownership (page 384) - This project ($914,619) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. Neighborhood Reinvestment Partnership (page 386) - This project ($600,000) provides funding to achieve the goal of promoting a broader income mix of downtown homeowners. This Program also provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved and dwellings are resold to responsible owners. Certain properties are targeted to be voluntarily acquired, for reason of poor maintenance and the inability or refusal of the owner to make improvements. These are then rehabilitated and resold to qualifying owner -occupied households. This is a ten-year TIF which state law requires a minimum of 38.1 % of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage benefiting Low and Moderate Income residents can be higher than the required 38.1 %. It is anticipated that the City will acquire, renovate and sell for long-term homeownership 25 residential properties over the next 5-7 years with an estimated $30,000 construction subsidy per property. English Ridge Housing TIF District In FY 2015 the City created a housing TIF district in the English Ridge subdivision off of Stone Valley Drive. This is a ten year TIF which requires at least 38.1 % of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1 %. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. Assistance for Homeownership (page 384) - This project ($1,848,223) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. South Pointe Housing TIF District In FY 2017 the City created a housing TIF district in the South Pointe subdivision off of Highway 151 South. This is a ten year TIF which requires at least 38.1 % of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1 %. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. Assistance for Homeownership (page 384) - This project ($1,206,694) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. Rustic Point Housing TIF District In FY 2017 the City created a housing TIF district in the Rustic Point subdivision off of Derby Grange Road. This is a ten year TIF which requires at least 38.1 % of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1 %. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. Assistance for Homeownership (page 384) - This project ($351,215) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. MISCELLANEOUS SOURCES Private Participation (0.17% of Total CIP) Private contributions represents the non -City share of the cost of several projects including private participation, fund raising, loans, grants and future resource allocation of City funds. Private participation funds included in the five year CIP include; Boyd Gaming contribution for the Port of Dubuque Ramp Maintenance ($431,578); Street Lighting and Traffic Signal Knockdown insurance reimbursements ($40,000) and IDOT reimbursement for the Pavement Marking program ($100,000). Special Assessments (0.33% of Total CIP) Special Assessments represent that portion of street and sanitary sewer improvement projects anticipated to be assessed to benefiting property owners. The $834,524 amount breaks down: (a) $154,524 for sanitary sewer special assessments, (b) $170,000 for sidewalk lien special assessments, and (c) $510,000 for street reconstruction assessments. Cable TV (0.01 % of Total CIP) It is anticipated that Cable TV funds will be used in the five-year CIP of $23,840 for computer replacements. THE CITY OF Masterpiece on the Mississippi Fiscal Year 2023 Recommended Budget Presentation Feb. 21, 2022 1 ir � BRAD M.CAVANAGH L MAYOR S RIC W. JONES DAVID T. RESNICK SUSAN R. FARBER LAURA J. ROUSSELL DANNY C. SPRANK VACANT POSITION AT -LARGE AT -LARGE 1ST WARD 2NDWARD 3RDWARD 4THWARD Over the course of three sessions in August, City Council members affirmed the 15- year vision statement and mission statement and identified eight five-year goals for the city. They also identified top and high priorities for a 2021-2023 policy agenda as well as in -progress projects and capital projects for 2021-2023. Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity Vibrant Community: Healthy & Safe Livable Neighborhoods and Housing: Great Place to Live Financially Responsible, High -Performance City Organization: Sustainable, Equitable, and Effective Service Delivery Sustainable Environment: Preserving and Enhancing Natural Resources Partnership for a Better Dubuque: Building Our Community that is Viable, Livable, and Equitable Diverse Arts, Culture, Parks, and Recreation Experiences and Activities Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility IVA CAI Chaplain Schmitt Island Master Plan Implementation • City Information & Network Security • Bee Branch watershed Project: Next Steps • Equitable Poverty Prevention & Reduction • Childcare Initiative Plan Implementation 0 • Community Broadband Expansion • Federal Infrastructure Program Preparation • Five Flags Center Direction • Complete Streets Concept Implementation: 16th St./Elm St./14th St. Railroad Overpass Project • Historic Building Rehabilitation/Preservation • Comprehensive Parks Master Plan Sewer System Infrastructure Upgrade (including Catfish Creek Sanitary Sewer • Imagine Dubuque Implementation System) • West End Fire Station Creating an Equitable Community (& Organization) of Choice THE C DUUB---*-TE Masterpiece on the Mississippi A High -Performance Organization (and community) with Engaged Employees and Residents that is Data -Driven and Outcome -Focused built on the four pillars of: } Through �� n i n L:. PartnershipMM s, & People r,I Dubuque County Population Estimates 100,000 99,000 6,Ob0s,�oa Year Recovery: 94,000 THERE IS 92,000 NOTHING FOR 90,000 YOU HERE 0 88,000 86.000,E 84,000 82,000 n t4 rw fn--�r LnLD co cn c t%A m�t Ln La r, w m a w rn-;j- tn�o r- wa% M::r in�c r, OD M c eq M::r Ln YD r- M °aasa�a+a a• $$ aooa aa000o ci r v , 4 r 1 ,-4 ri q r L r 4 rl —4 -4 ri �I r� .� r 1 ,-4 ra -4 r1 r� rw ru iV rV ru N tax rV fiJ rd ru ru " ev fN fiu " ru " " [v 6 Recommended FY23 Property Tax Rate THE C DUUB---*-TE Masterpiece on the Mississippi $9,7169 per thousand dollars assessed value (1.74% decrease from current FY22 rate of $9.8890) 1 1 � -1.72% Igo 0 M -$0.17 Property Tax Rate Property Tax Asking 0.00% $0.00 Avg. Residential Payment 2.96% $22.74 Avg. Commercial Payment -3.43% -$105.40 Avg. Industrial Property -2.88% -$131.28 Avg. Multi -Residential Property -7.20% -$126.11 C: FY2023 Recommended nroperty Tax Rate THE C DUUB---*-TE Masterpiece on the Mississippi City Property Tax Askings & % Change Fiscal Year FY2020 Tax As king $269296,081 % Change.An FY2021 $269202,568 -0.36% FY2022 $2632053437 +0.01 FY2023 $2632053437 No Change N FY2023 Recommended Property Tax Rate THE C DUUB---*-TE Masterpiece on the Mississippi Impact on Average Residential Property (FY21 =23) Lg&l Year $ ChangejjdjL %Change 1K FY2020 $770m17 FY2021 $769mO8 -0.14% FY2022 $769-08 No Change FY2023 $791m82. +2.96% Average Annual Increases THE C DUUB---*-TE Masterpiece on the Mississippi Since 1989, the average homeowner has averaged an annual increase in costs in the City portion of their property taxes of 1.26%, or about $7.55 a year. If the State had been fully funding the Homestead Tax Credit, the increase would have averaged about +$4.65 a year. FY2023 Recommended Oropertv Tax Rate THE C DUUB---*-TE Masterpiece on the Mississippi Impact on Average Commercial Property j6c a., Year L. $ Chang id&mi % Change FY2020 $39160.71 FY2021 $39169.30 +0.27% FY2022 $39039.57 -3.15% FY2023 $23964.17 -3.43% W FY2023 Recommended property Tax Rate THE C DUUB---*-TE Masterpiece on the Mississippi Impact on Average Industrial Property Fiscal Year EL $ Change A&6 % Change FY2020 $49713.76 FY2021 $49694.17 -0.42% FY2022 $4,556-11 -2.94% FY2023 $49424-83 -2.88% 11 FY2023 Recommended Property Tax Rate THE C DUUB---*-TE Masterpiece on the Mississippi Impact on Average Multi -Residential Property Fiscal Year FY2020 -q hir $ Change $13737.92 % Change FY2021 $17896-65 +g.13% FY2022 $15751.66 -7.64% FY2023 $13625.55 -7.20% 12 City Property Tax Rate Comparison $11.77 $9.72 $9.83 $9.95 $15.06 $15.44 $15.73 �& 4P �p �+ �ePJ� � Waterloo = 98% higher than Dubuque THE C DUUB---*-TE Masterpiece on the Mississippi $16.03 $16.78 $17.56 $18.26 $19.24 190 :�\00 `off Gea O Oe �� 0 Average = 55% higher than Dubuque 13 $599000 $57,000 $55,000 $53,000 $51,000 $479000 $459000 $8 Tax Rate and Median Household Income Ames(FY23) $10 $12 $14 Davenport(FY23) Cedar Rapids(FY23) THE C DUUB---*-TE Masterpiece on the Mississippi Des Moines(FY23) �ity(FY23) Council Bluffs(FY22) Iowa City(FY23) $16 $18 Waterloo(FY22) $20 14 THE Recommended FY23 DUB---*-TE Property Taxes Per Capita Masterpiece °° the Mississippi $1,153.62 $682.25 $707.58 $511.57 $514.83 $829.17 $831.76 $856.56 $909.99 $919.78 $966.86 $780.23 Ames Dubuque Sioux City Ankeny Waterloo Des Moines Avg. w/o Davenport Cedar Iowa City Council West Des Dubuque Rapids Bluffs Moines West Des Moines = 126% higher than Dubuque Average = 63% higher than Dubuque 15 Percentage of Legal Debt Limit Utilized 62% 61 % 54% 53% 51 % 50 /o ° kp P 43% 41 -"4b��33% THE C DUUB---*-TE Masterpiece on the Mississippi 25% 20/0 ° ° 19 /o m Reduction of Statutory Debt Limit Used 89.9% 84.3% 83.9% 69.7% 86.1 % THE C DUUB---*-TE Masterpiece on the Mississippi 69.5% 63.4% 56.3% N 50.2% o 46.5 /o 41.1 % 41.0% 39.4% 35.2% 32.0% FY16 to FY23 = 57.9 /0 decrease in use of the statutory debt limit. FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 17 $30 $25 $20 Retired Debi (in millions) . New Debt FY2023 will be the 7t" consecutive year of retiring more debt than is being issued. $23.36 $23.03 $23.02 $23.14 $24.32 $22.29 $22.08 22.01 $20.84 $20.67 $17.72 $19.03 THE C DUUB---*-TE Masterpiece on the Mississippi $24.73 $24.07 $21.73 $6 $17.95 $18.05 $17.66 17.80 $17.13 $17.50 16.2 $15 $14.30 14.77 14.92 12.97 12.07 $10.48 $10 $5 $4.05 $1.00 $1.00 $1.00 $1.00 $1.00 $0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Retired Debt ■ New Debt m general Fund ;ash Reserve City's Spendable General Fund Cash Reserve Fund Balance % of Projected Revenue $175743,471 22.34% GOAL = 20% $175743,471 21.90% $175743,471 21.47% $17, 743, 471 21.05% THE C DUUB---*-TE Masterpiece on the Mississippi $17, 743, 471 20.63% 19 City Utilities THE C DUUB---*-TE Masterpiece on the Mississippi ERVICE 16: Water RECOMMENDED FY2023 RATE $33.25 CHANGE FROM FY2022 +5% Sewer $47.42 9% Solid Waste $15.38 No Change Storm Water $9.00 1.69% Utilities Comparisons THE C DUUB---*-TE Masterpiece on the Mississippi DUBUQUE'S AVERAGE W/O RANK AMONG RECOMMENDED DUBUQUE LARGEST IOWA 1kSERVICE FY2023 RATIML aAL CITIES, $35.10 Water $33.25 2nd LOWEST Sewer $47.42 $41.08 4th HIGHEST Solid Waste $15.38 $17.93 5th LOWEST Storm Water $9.00 $6.24 2nd HIGHEST 21 Significant Community Investments 1. Community Safety 2. Roads and Infrastructure 3. Economic Development 4. Improved Customer Service 5. High Quality of Life in an Equitable Community THE C DUUB---*-TE Masterpiece on the Mississippi 6. Identifying and Funding Important Initiatives to Support Employees 22 Part 1 Crimes Comparison Crimes Against Persons 208 220 ■ Murder 0 0 ■ Sexual Assault 38 61 ■ Robbery 20 ■ Aggravated Assault 138 139 Crimes Against Property 1,791 1,662 ■ Burglary 431 416 ■ Burglary to Motor Vehicle dM 168 ■ Theft 1,103 1,035 ■ Theft of Motor Vehicle 26 43 Total 1,999 1,882 265 243 " 190 190 226 224 E 1 2 1 0 1© 2 80 98 90 75 91W 95 81 27 26 16 29 14 26 22 24 ® 118 95 85 85 135 104 117 1,875 1,667 1,543 : 420 331 299 205 219 240 345 106 144 157 145 88 148 96 143 1,235 1,116 1,036 945 808 823 1,038 54 76 63 63 81 70 62 Im 2,118 1,870 1,733 1,509 1,512 1,470 1,812 THE C DUUB---*-TE Masterpiece on the Mississippi -15.4 500.0 -11.6 -8.4 -23.0 9.6 -35.2 0.0 21.4 -0.1 84.75% 80% 88% 77% 94% R9.90% 83.75% 90% 89.70% 96% 45.50% 17.20% *2014 = Public Safety Software Change 23 Commun'i I . Safety • 7 additional Firefighters, allowing a third THE C DUUB---*-TE Masterpiece on the Mississippi ambulance to be staffed 24/7 and reducing the need for overtime • Replacing 9-1-1 Center part-time hours with a new full-time position • Tasers for all Police Officers *Continued deployment of security cameras network • $6O0K+ for Police body & car camera integratioq4 Communi, I Safety THE C DUUB---*-TE Masterpiece on the Mississippi • Filling vacancies in the Police Department *Proposed creation of Community Partnerships & Diversion division (1 new FT position + 2 FT added in FY22) in Leisure Services Dept. 25 Roads & Infrastructure Southwest Arterial (2021), US Hwy. 20 interchange at Swiss Valley Rd. (2021), reconstruction of Chavenelle Rd. (2021) THE C DUUB---*-TE Masterpiece on the Mississippi •Public Works Department's resurfacing 10 miles of City streets instead of 5 miles • 2022: Resurfacing of Northwest Arterial from JFK Rd. to US Hwy. 20 with intersection improvements ($8+ million) 26 Roads & Infrastructure THE C DUUB---*-TE Masterpiece on the Mississippi • Tens of millions of dollars, with potential federal support, to upgrade and extend the City's water distribution system for greater redundancy & reliability and preparing for Southwest Arterial Corridor development 27 Economic Developmer) THE C DUUB---*-TE Masterpiece on the Mississippi *investments in downtown, Central Avenue Corridor, Schmitt Island access, West End industrial parks *Dubuque Industrial Center: Crossroads - Finish development plan, implement phase one to prepare 30 acres *infrastructure investments support economic development THE C DUUB---*-TE 1r%.ftw%rovedServ'ice Masterpiece on the Mississippi Automated collection of refuse carts *Progress towards community -wide implementation after successful pilot program *improved customer convenience and neighborhood appearance *increased safety for refuse collection staff • Use of ARPA funds for implementation to reduce cost 29 THE High Quality of Life in an DUB---*-TE Equitable Community Masterpiece °° the Mississippi *Creation of the Office of Shared Prosperity & Neighborhood Support (Total of 3 FT & 1 PT position) in FY2022 • Investments in parks and trails Droiects •Advancing equity by addition of Juneteenth paid holiday for City employees W Initiatives to Support Employees THE C DUUB---*-TE Masterpiece on the Mississippi New positions to advance important initiative and meet existing needs: • Added by amendement in FY2022: - Project Manager in Leisure Services - 2 new Human Resources positions 31 Initiatives to Support TDUB---*-TE Employees Masterpiece on the Mississippi New positions for FY2023 to advance important initiative and meet existing needs: Assistant Fixed Base Operator (Airport) *Secretary (City Clerk's Office) Climate Action Plan Coordinato r (Sustainability) Teen Resiliency Corps (Sustainability & MFC) Grant Analyst (City Managers Office Strategic Partnerships) 32 Initiatives to Support Employees New positions for FY2023 continued: • Utility Locator (Engineering) • Medical Director hours (Fire) THE C DUUB---*-TE Masterpiece on the Mississippi • Help Desk position & User Technology Specialist (Information Services) to boost user support and cybersecurity • PT to FT upgrade for Maker Space support (Library) 33 Initiatives to Support Employees New positions for FY2023 continued: • Part-time Secretary (Public Works) THE CITY OF DUB E Masterpiece on the Mississippi Funding for Fire Department Employee Health & Wellness Program 34 Opportunities fo Forgivable L oar Grants & THE C DUUB---*-TE Masterpiece on the Mississippi • $1.1 Trillion federal infrastructure package and additional available federal and state funds to maintain and upgrade infrastructure. Need to invest local dollars to do design and engineering work to have competitive grant applications and be shovel ready. Also to provide matching dollars. 35 Challenges for Grants & Forgivable Loans THE C DUUB---*-TE Masterpiece on the Mississippi *Project prep & matching funds to be eligible for grants *Up to 50% of loans forgivable if City provides 50% match Especially importan train traffic starting t with doubling of in 2023 W FY2023 Recommended Budget Improvement Packages THE C DUUB---*-TE Masterpiece on the Mississippi 159 improvement level decision packages requested and 128 recommended for funding $2,106,011 for annually recurring and $907,872 for non -recurring improvement packages in the General Fund 37 FY2023 Recommended Budget Improvement Packages THE C DUUB---*-TE Masterpiece on the Mississippi FY2022 General Fund oaeratina budaet savinas and ■ v v v increased revenue over projections will fund non- recurring improvement packages in the General Fund. Remaining improvement packages recommended for funding from non -property tax support total $1,6583228. FY2023 Recommended Budget DUB---*-TE Improvement Packages Masterpiece °° the Mississippi General Fund Support: *Annually recurring = $1,962,777 • Non -recurring = $919,929 Total of $4,803,937 in general fund improvement package requests = net property tax impact of $3,985,696, with $2,882,706 recommended for funding 39 FY2023 Recommended Personnel Changes THE C DUUB---*-TE Masterpiece on the Mississippi • Increases full-time equivalents by 29 *Decreases part-time equivalents by 6.37 *Increases seasonal equivalents by 0.42 Net increase of 23.05 full-time equivalents MIJ FY2023 Recommendations Operating Budget = $15250035749 THE C DUUB---*-TE Masterpiece on the Mississippi Capital Improvement Program Budget = $6952625412 ,V CREATING AN EQUITABLE COMMUNITY OF ';HOICE A H ig h =Performance Organization (and Community) that is Data -Driven and Outcome -Focused built on the four pillars of: Resilient Sustainability Equity ^ompassion Through Planning, Partnerships, and People 42