Set Public Hearing for Resolution Establishing Maximum Property Tax Dollars for Fiscal Year 2024_Initiate Copyrighted
February 6, 2023
City of Dubuque Items to be set for Public Hearing #
City Council Meeting 01.
ITEM TITLE: Set Public Hearing for Resolution Establishing Maximum Property Tax
Dollars for Fiscal Year 2024
SUM MARY: City Manager recommending that a February 20, 2023, public hearing be
set for the establishment of the Fiscal Year 2024 Maximum Property Tax
Dollars.
RESOLUTION Setting a Public Hearing on the Fiscal Year 2024
Maximum Property Tax Dollars for the affected tax levy total
SUGGESTED 1: Receive and File; Presentation; Set Maximum Property Tax Rate
DISPOSITION: THEN 2: Receive and File; Adopt Resolution(s), Set Public Hearing for
February 20, 2023 Suggested Disposition:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
FY24 Improvement Package Listing Supporting Documentation
FY24 Budget and Fiscal Policy Guidelines Supporting Documentation
Resolution Resolutions
FY24 Ma�amum Property Tax Resolution Notice of Supporting Documentation
Public Hearing
Supporting document-City Council Goals & Priorities Supporting Documentation
Supporting documentation-FY2023 Dollars and Cents Supporting Documentation
FY24 Public Hearing Schedule Supporting Documentation
Dubuque
THE CITY QF �
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Set Public Hearing for Resolution Establishing Maximum Property Tax
Dollars for Fiscal Year 2024
DATE: February 2, 2023
Chief Financial Officer Jennifer Larson is recommending that a February 20, 2023,
public hearing be set for the establishment of the Fiscal Year 2024 Maximum Property
Tax Dollars.
At the February 20, 2023 public hearing, the only options available to City Council
are to approve the amount of maximum property tax dollars as is or decrease it. A
simple majority vote will be required to approve the maximum property tax
dollars resolution.
In FY2023, the City levied for $26,205,437 in property tax revenue to support the
general fund and in FY 2024 the budget guidelines would levy for $26,623,475 in
property tax revenue to support the general fund. The FY2024 budget guidelines
call for a 1.96°/a increase in the property tax rate, which increases the property tax
rate from $9.7169 in FY23 to $9.9075 in FY 24, which would be a 3.00% or $23.75
tax increase for the average Dubuque homeowner, increase in property tax for
commercial (8.84°/a, $270.61) and a increase for industrial (6.62%, $299.27).
, . .
Pro ert Tax Rate °
Pro ert Tax Askin °
Avera e Residential Pa ment °
Avera e Commercial Pa ment °
Averaqe Industrial Propert 6.6 % $2
Since 1989, the average homeowner has averaged an annual increase in costs in the
City portion of their property taxes of 1.31%, or about $7.98 a year. If the State had
been fully funding the Homestead Tax Credit, the increase would have averaged about
+$5.16 a year.
I concur with the recommendation and respectfully recommend Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
2
Dubuque
THE CITY OF �
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Set Public Hearing for Resolution Establishing Maximum Property Tax
Dollars for Fiscal Year 2024
DATE: February 2, 2023
I am recommending approval of the resolution establishing the Fiscal Year 2024
Maximum Property Tax Dollars.
At the February 20, 2023 public hearing, the only options available to City Council
are to approve the amount of maximum property tax dollars as is or decrease it. A
simple majority vote will be required to approve the maximum property tax dollars
resolution.
lowa Senate File 634, passed during the 2019 legislative sessions, makes changes to
lowa city and county budgets and taxes for FY2021 and later. Additional steps have
been added to the budget approval process:
1. Determine a maximum amount of taxes that the municipality will certify to
be levied as property taxes from certain levies in the next fiscal year
(called the "total maximum property tax dollars"), and prepare a resolution
that establishes that amount of"total maximum property tax dollars" for the
next fiscal year.
2. Set a time and place for a public hearing on the resolution.
3. Hold a public hearing on the resolution, at which residents and property
owners may present oral or written objections.
4. Following the public hearing, the governing body may decrease the
proposed "maximum property tax dollars" amount but may not increase
the amount.
5. Adopt the resolution. If the "total maximum property tax dollars" amount is
greater than 102% of the current fiscal year's actual property taxes from
the identified levies, then the resolution must pass the governing body by
a two-thirds majority of the full City Council.
The maximum property tax dollars resolution is developed and adopted by City Council
during the budgeting process in order to provide targets or parameters within which the
budget recommendation will be formulated within the context of the City Council Goals
and Priorities established in August 2022. The recommended budget presented by the
City Manager may not meet all of these targets due to changing conditions and updated
information during budget preparation. To the extent the recommended budget varies
from the guidelines, an explanation will be provided in the printed budget document. By
State law, the budget that begins July 1, 2023 must be adopted by March 31, 2023.
However, there are discussions in the Legislature to extend the deadline to April 30,
2023 due to the need for the State of lowa to correct the calculation of the residential
rollback.
The FY2024 budget recommendation funds $711,000 for annually recurring
improvement packages funded by property taxes in the General Fund and $703,215 for
non-recurring improvement packages funded by FY2024 DRA Distribution.
For FY2024 there are $2,935,022 in general fund improvement package requests with a
net property tax impact of$2,413,689, with $1,384,724 recommended for funding.
In order to provide context for the basis of the recommended maximum property tax
dollars recommended in FY2024, the FY2024 Budget and Fiscal Policy Guidelines and
the summary of all decision packages requested are attached.
In FY2023, the City levied for $26,205,437 in property tax revenue to support the
general fund and in FY 2024 the budget guidelines would levy for$26,623,475 in
property tax revenue to support the general fund. The FY2024 budget guidelines
call for a 1.96% increase in the property tax rate, which increases the property tax
rate from $9.7169 in FY23 to $9.9075 in FY 24, which would be a 3.00% or $23.75
tax increase for the average Dubuque homeowner, increase in property tax for
commercial (8.84°/a, $270.61) and a increase for industrial (6.62%, $299.27).
, , � �
Property Tax Rate 1.96% $0.19
Property Tax Asking 1.60% $418,038
Average Residential Payment 3.00% $23.75
Average Commercial Payment 8.84% $270.61
Average Industrial Property 6.62% $299.27
Since 1989, the average homeowner has averaged an annual increase in costs in the
City portion of their property taxes of 1.31%, or about $7.98 a year. If the State had
2
been fully funding the Homestead Tax Credit, the increase would have averaged about
+$5.16 a year.
The City Council is only considering the FY2024 property tax rate. The FY2025 - 2028
tax rates are only projections. The future budget projections will be updated each year
so that City Council will have an opportunity in the next year to change FY2025.
The City property tax rate projected in these budget guidelines and impact on the
average residential property owner ($159,503 assessed value) is as follows:
.
FY 2024 $9.9075 1.96%
FY 2025 $10.3954 4.92%
FY 2026 $10.7046 2.97%
FY 2027 $10.9393 2.19%
FY 2028 $11.3513 3.77%
. . - . - . . . � . . . . � .
� . � . . - . . - . - . . -
FY 2023 $26,205,437
FY 2024 $26,623,475 +1.60% +3.00% +$23.75
FY 2025 $28,643,682 +7.59% +4.93% +$40.17
FY 2026 $30,085,098 +5.03% +2.97°/a +$25.45
FY 2027 $31,360,194 +4.24% +2.19°/a +$19.31
FY 2028 $33,191,610 +5.84% +3.77% +$33.92
The recommended guideline is a 3.00% or $23.75 increase for the average residential
property owner assuming the Homestead Property Tax Credit is fully funded. A one
percent increase in the tax rate will generate approximately $260,687.
At the time residential rollback was calculated by the lowa Department of Revenue for
Fiscal Year 2024, the multi-residential property class values were not excluded from the
calculation. House File 418, which combined the residential and multi-residential
property classes, intended to have the residential rollback calculated separately without
the inclusion of multi-residential property, and then assign that calculated residential
rollback to all properties classified as multi-residential.
Due to the multi-residential property tax not being excluded at the time the residential
rollback was calculated, the residential rollback was computed as 56.4919%. The State
Legislature has indicated that they will pass a bill that will correct this error which will
result in excluding multi-residential property from the residential rollback calculation and
a rollback calculation of 54.6501%.
The reduction in residential rollback from 56.4919% to 54.6501% results in a tax
revenue loss for the City of$627,641 in FY24.
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The State's residential rollback factor will increase from 54.1302% in 2023 to 54.6501%
or a 0.96% increase in FY 2024. The increase in the residential rollback factor increases
the value that each residence is taxed on. This increased taxable value for the average
homeowner ($86,339 taxable value in FY 2023 and $87,169 taxable value in 2024)
results in more taxes to be paid per $1,000 of assessed value.
For the proposed Fiscal Year 2024, Dubuque has the THIRD LOWEST property tax rate
as compared to the eleven largest cities in the state. The highest rate (Waterloo (FY23))
is 93.01% higher than Dubuque's rate, and the average is 52.33% higher than
Dubuque. Dubuque's recommended FY 2024 property tax rate is $9.91 (increase of
1.96% from FY 2023).
Fiscal Year 2024 City Property Tax Rate Comparison for Eleven Largest lowa
Cities
11 Waterloo (FY23) $18.97
10 Council Bluffs (FY23) $17.83
9 Des Moines (FY23) $17.56
8 Davenport (FY23) $16.78
7 Cedar Rapids (FY23) $16.03
6 lowa City (FY23) $15.63
5 Sioux City (FY23) $15.42
4 West Des Moines (FY23) $11.79
3 Dubuque (FY24) $9.91
2 Ankeny (FY23) $9.90
1 Ames (FY23) $9.83
AVERAGE w/o Dubuque $14.97
Significant issues impacting the FY 2024 budget include the following:
1. State Funded Backfill on Commercial and Industrial Property Tax
a. lowa 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 eight-year
4
period from FY 2023 to FY 2030. 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 eight year period from FY 2023 to FY 2030. Beginning in FY 2023,
the backfill will be eliminated over a eight year period.
b. House File 2552, Division 11, passed in the 2022 legislative session and
signed by the Governor on May 2, 2022, repeals the Business Property
Tax Credit (BPTC). In lieu of the BPTC, beginning with assessment year
2022, all commercial, industrial, and railroad properties will receive a
property assessment limitation on the first $150,000 of value of the
property unit equal to the assessment limitation for residential property.
The value of the property unit that exceeds $150,000 receives the same
ninety percent assessment limitation it has in the past.
The $125 million fund will continue to be appropriated each year for
reimbursements to counties. County auditors will file a claim for the first
tier of the assessment limitations in September. Assessors will continue to
provide the unit configuration for auditors as these definitions remained
the same. Taxpayers are not required to file an application to receive the
first $150,000 of assessed value at the residential assessment limitation
rate.
If the total for all claims is more than the appropriated amounts, the claims
will be prorated and the lowa Department of Revenue will notify the county
auditors of prorated percentage by September 30�h. Lawmakers believe
the new standing general fund will exceed the projected level of claims for
fiscal years 2024 through 2029. Then in fiscal year 2030, the local
government reimbursement claims will begin being prorated.
The projected backfill for Dubuque for the two-tier assessment
limitation in Fiscal Year 2024 is estimated to be $619,735.
2. Gaming Revenue.
a. Gaming revenues generated from lease payments from the Dubuque
Racing Association (DRA) are estimated to decrease $429,640 from
$7,512,677 in FY 2023 to $7,083,037 in FY 2024 based on revised
projections from the DRA. This follows a $2,283,319 increase from budget
in FY 2023 and a $43,621 increase from budget in FY 2022.
b. A portion of the prior year February 2023 DRA distributions will be used in
Fiscal Year 2024 to offset DRA rent loss of$541,398. In addition, of the
February 2024 projections of operating surplus, $210,055 will be used to
offset the new State legislation which reduced the residential rollback and
reduced City resources by $627,000, $291,349 will be used for the
purchase of Solid Waste tipper carts, and the balance will be used for
5
non-recurring improvement packages. This is a change from past use of
DRA distributions because all funds will be used for Fiscal Year 2024
operations.
3. Multi-residential property class combined with Residential in Fiscal Year 2024.
a. Beginning in FY 2017 (July 1, 2016), new State legislation created a new
property tax classification for rental properties called multi-residential,
which requires a rollback, or assessment limitations order, on multi-
residential property which will eventually equal the residential rollback.
Multi-residential property includes apartments with 3 or more units. Rental
properties of 2 units were already classified as residential property. The
State of lowa will not backfill property tax loss from the rollback on multi-
residential property. This annual loss in tax revenue of $1,186,077
from multi-residential property when fully implemented in FY 2024
will not be backfilled by the State.
b. In Fiscal Year 2024, the multi-residential property class was eliminated
and is reported with the residential property class.
c. At the time residential rollback was calculated by the lowa Department of
Revenue for Fiscal Year 2024, the multi-residential property class values
were not excluded from the calculation. House File 418, which combined
the residential and multi-residential property classes, intended to have the
residential rollback calculated separately without the inclusion of multi-
residential property, and then assign that calculated residential rollback to
all properties classified as multi-residential.
Due to the multi-residential property tax not being excluded at the time the
residential rollback was calculated, the residential rollback was computed
as 56.4919%. The State Legislature has indicated that they will pass a bill
that will correct this error which will result in excluding multi-residential
property from the residential rollback calculation and a rollback calculation
of 54.6501%.
The reduction in residential rollback from 56.4919°/a to 54.6501%
results in a tax revenue loss of $627,641 in FY24.
4. Interest Revenue
a. Interest revenue increased from $461,015 in FY 2023 to $1,500,016 in FY
2024. The FY 2024 budget is based on current general fund cash balance
and an interest rate of 4.00%.
6
5. Ambulance Revenue
a. Ambulance Ground Emergency Medical Transport Payments increased
from $1,174,894 in FY 2023 to $2,324,377 in FY 2024. GEMT is a
federally-funded supplement to state Medicaid payments to EMS providers
transporting Medicaid patients which began in FY 2022. Fiscal Year 2023
was based on a four year average of Medicaid transports and Fiscal Year
2024 is based on the first four months of Fiscal Year 2023 Medicaid
transports annualized (1,311) increased by 11% (1,455). The actual rate of
reimbursement from Medicaid increased from $1,579.13 in FY 2023 to
$1,597.51 in FY 2024 based on the cost report filed. This line item is offset
by GEMT Pay to Other Agency expense for local match of$438,000
resulting in net revenue of$1,886,377.
6. Moody's Investors Service Change in Methodology
a. In November of 2022, Moody's Investors Service ("Moodys") released a
new rating methodology for cities and counties. Two significant changes
result from the new methodology; cities are now assigned an issuer rating
meant to convey the creditworthiness of the issuer as a whole without
regard to a specific borrowing, and business-type enterprise funds are
now being considered together with general fund revenues and balances
in the determination of financial performance.
Coincident with the release of its methodology, Moody's reviewed the City
of Dubuque. The City was assigned an issuer rating of Aa3, which is
equivalent to the existing rating on its general obligation bonds. At that
time, the rating agency did not take any additional action on the City's
bond rating, nor did it indicate a need for further review.
Under the new methodology, there are two metrics that contribute to
financial performance. Available Fund Balance Ratio ("AFBR") _ (Available
Fund Balance + Net Current Assets/Revenue) and Liquidity Ratio ("LR") _
(Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35,
and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of
2022 in connection to its annual issuance of bonds. At that time, Moody's
calculated the City's AFBR to be 45.2%, and its LR to be 59.8%. The
balances used in these calculations were likely elevated due to unspent
ARPA funds. The change in methodology will now consider revenues and
net assets from business-type activities in these calculations. As such, the
City's general obligation rating will now be directly impacted by the financial
performance of enterprise funds. Establishing rates and charges adequate
to provide both debt service coverage and significant liquidity will be
necessary to maintain the City's ratings.
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7. Debt Reduction
a. In August 2015, the Mayor and City Council adopted a debt reduction
strategy which targeted retiring more debt each year than was issued by
the City. The FY 2024-2028 Capital Improvement Program is currently
being reviewed and balanced, so there are no revised Fiscal Year
2024 debt projections yet.
You can see that the Mayor and City Council have significantly
impacted the City's use of the statutory debt limit established by the
State of lowa. In Fiscal Year 2015, the City of Dubuque used 90°/a of
the statutory debt limit. Based on Outstanding G.O. debt (including
tax increment debt, remaining payments on economic development
TIF rebates, and general fund lease agreement) on June 30, 2023 will
be $104,181,408 (40.75°/a of the statutory debt limit) leaving an
available debt capacity of$155,115,882 (59.25°/a). In FY 2022 the City
was at 43.21% of statutory debt limit, so 40.75% in FY 2023 is a 5.70%
decrease in use of the statutory debt limit. This is an improvement on
the debt reduction plan adopted in August 2015, that first began
implementation in Fiscal Year 2016.
Statutory Debt Limit Used
(as of June 30th)
100%90% 870�0
82% 79% a 79% 74% o
72/o
75% 87% 6% 70/a 66% 66% 62%
60%
53%
50% 47°/a 43% 43% 4�% 41% 40% 37% o
34/0 30% o
26/0 23% o
25% 20/o �7a/o
—%
TI TI �'I �'I TI TI TI 7'I 7'I TI �'I TI 7'I TI 7'I 7'I TI �'I
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� � —� j � W N N N IV W N N N N W W W
CT� � �I 00 t0 O � N W � C71 � V 0� G� O j N
FY16 Adopted f FY23 Adopted
d. The City also has debt that is not subject to the statutory debt limit. This debt
includes revenue bonds. Outstanding revenue bonds payable by water, sewer
and stormwater fees on June 30, 2023 will have a balance of $148,546,235. The
total City indebtedness as of June 30, 2023, is projected to be $251,517,642. The
8
total City indebtedness as of June 30, 2022, was $252,137,581. In FY 2023, the
City will have a projected $619,939 or 1.90% less in debt. .
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 lowa for
Fiscal Year 2022 with a population over 50,000:
Fiscal Year 2022 Legal Debt Limit Comparison for Eleven Largest lowa Cities
Rank City Legal Debt Limit Statutory Debt Percentage of Legal
(5%) Outstanding Debt Limit Utilized
11 Des Moines $ 718,164,068 $ 584,079,175 81.33 %
10 Sioux City $ 268,884,360 $ 146,463,622 54.47 %
9 Waterloo $ 204,491,592 $ 123,519,127 60.40 %
8 Davenport $ 386,405,519 $ 202,220,000 52.33 %
7 Cedar Rapids 619,108,725 334,460,000 54.02 %
6 W. Des Moines $ 468,115,757 $ 239,455,000 51.15 %
5 Dubuque (FY23) $ 259,297,290 $ 105,657,516 40.75 %
4 Ankeny $ 354,600,527 $ 110,000,000 31.02 %
3 Ames $ 259,576,468 $ 62,570,000 24.10 %
2 Council Bluffs $ 309,959,314 $ 59,243,902 19.11 %
1 lowa City $ 350,967,316 $ 65,775,000 18.74 %
Average w/o Dubuque 44.67 %
Percent of Legal Debt Limit Utilized
�oo°io
81.33%
75%
60.40%
51.15% 54.02% 52.33o�a 54.47%
50% 44.67%
40.75%
31.02%
24.10%
25% 18.74% 19.11% �
0%
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9
Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities
in lowa with a population over 50,000 and Dubuque is slightly above the average
of the other Cities.
Total Debt (In Millions)
$324
$302.3
$297 �2sa�
$Za2.o $2�s.s
$295.5
$270 $285.7 $265.6 $267.4
$274.7 $250.6 $255.9$251.5 $256.7 $257.9�259.3 $258.8
$264.5
� $243 $252.2 $252.1 236.1
O $244.3 $z41.4
= 212.9
� $216 $22s.2
189.6
$189
$162
$168.5
$135 $152.2
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32
FY16 Adopted � FY23 Adopted
By the end of the Fiscal Year 2023 5-Year Capital Improvement Program (CIP)
budget the total amount of debt for the City of Dubuque would be $258.8 million
(34% of the statutory debt limit) and the projection is to be at $152 million (17% of
statutory debt limit) within 10 years.
8. General Fund Reserve
The City maintains a general fund reserve, or working balance, to allow for
unforeseen expenses that may occur. Moody's Investor Service recommends a
20% General Fund Operating Reserve for "AA" rated cities. May 2021, Moody's
Investor Services upgraded the City's Water Enterprise's outstanding revenue
bonds from A1 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.
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.
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.
� •- • . . . - . . .
- - • •••
- •
Increase due to capital projects not expended before the end
FY 2017 20.09% of the FY and additional contributions to general fund reserve
Increase due to capital projects not expended before the end
FY 2018 23.81% of the FY and additional contributions to general fund reserve
Increase due to capital projects not expended before the end
FY 2019 29.06% of the FY.
Increase due to freezing vacant positions and most capital
FY 2020 31.24% projects due to the pandemic.
Increase due to American Rescue Plan Act funds received
FY 2021 40.72% Fe1b 202�Ilion), frozen positions and capital projects through
Increase due to American Rescue Plan Act funds received
($13.2 million), capital projects not expended before the end
FY 2022 49.16% 45.09% of the FY, and vacant positions.
Fund Reserve as a Percent of General Fund Revenue
50 49.16%
50.18%
0 40 40.72% 41.97%
�
�
v gp 33.76%
a 29.06%1.24% � 25.56%
20 23.81% 25.56% 25.56%
20.09% � � �
10 —
FY FY FY FY FY FY FY FY FY FY FY FY
17 18 19 20 21 22 23 24 25 26 27 28
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.
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After all planned expenditures in FY 2023, the City of Dubuque will have a
general fund reserve of 50.18% of general fund revenues as a percent of general
fund revenues computed by the accrual basis or 45.25% of general fund, debt
service, and enterprise fund revenues as computed by the accrual basis
methodology now used by Moody's Investors Service. The general fund reserve
cash balance is projected to be $37,014,317 on June 30, 2023 as compared to
the general fund reserve balance on an accrual basis of$35,459,518. The
general fund reserve balance on an accrual basis exceeds 22% in FY 2023,
which is the margin of error used to ensure the City always has a general fund
reserve of at least 20% as computed by Moody's Investors Service.
In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2022. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has
sustained a greater than 20°/a reserve.
� � � . � � . � � :
Contribution $— $— $— $— $— $— $—
City's Spendable
General Fund Cash $41,259,518 $35,459,518 $29,659,518 $23,859,518 $18,059,518 $18,059,518 $18,059,518
Reserve Fund
Balance
% of Projected 49.16% 50.18% 41.97% 33.76% 25.56% 25.56% 25.56%
Revenue (Moody's)
9. The Municipal Fire and Police Retirement System of lowa Board of Trustees City
contribution for Police and Fire retirement decreased from 23.90% percent in FY
2023 to 22.98% percent in FY 2024 (general fund savings of$19,303 for Police
and $74,660 for Fire or a total of$55,356).
�o. The already approved collective bargaining agreements for Dubuque Police
Protective Association, Teamsters Local Union No. 120 Bus Operators, and
Teamsters Local Union No. 120 in FY 2024 include a 3.00% employee wage
increase, however a 5.00% wage increase is recommended for all collective
bargaining agreements except the Dubuque Police Protective Association and
Dubuque Professional Fire Fighters Association, which a 6.00% wage increase is
recommended. In addition, the Dispatchers that are part of the International
Union of Operating Engineers include a 6.00% wage increase. Non-represented
employees include a 5.00% wage increase, with the exception of Police and Fire
command staff excluding the Police and Fire Chief include a 6.00% wage
increase, and the Lead Dispatchers include a 6.00% wage increase. Total cost of
the wage increase is $1,230,187 to the General Fund.
11.Health Insurance
The City portion of health insurance expense is projected to remain unchanged
from $1,119 per month per contract to $1,119 per month per contract (based on
12
637 contracts) in FY 2024 (no general fund impact). 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 and
Fiscal Year 2022 included additional prescription drug plan savings.There was a
decrease of $639,758 in prescription drug cost in FY 2022. Based on FY 2023
actual experience, Fiscal Year 2024 is projected to have a 5.27% increase in
health insurance costs. Estimates for FY 2025 were increased 5.27%; FY 2025
were increased 5.27%; FY 2026 were increased 5.27%; and FY 2027 were
increased 5.27%.
�2. The decrease in property tax support for Transit from FY 2023 to FY 2024 is
$126,874, which reflects an increase in Federal Transportation Administration
Operating revenue ($8,267); an increase in Federal Transportation Administration
Capital ($233,133), an increase in employee expense ($211,973); increase in
supplies and services ($90,303); a reduction in equipment replacements
($24,245), an increase in passenger fare revenue ($6,770).
Timeline of Public Input Opportunities
The Budget Office conducted community outreach with Balancing Act using print and
digital marketing and presentations.
• October: Point Neighborhood Association.
• November: City staff participated in City Life presentations on the budget
process and attendees had the opportunity to prioritize real City projects.
• 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.
A total of 27 community members attended budget presentations. There have
been 252 page views of the Balancing Act budget simulator tool and 8 budgets
have been submitted by the public as of January 19, 2023. The input provided will
be analyzed by City staff and evaluated by the City Manager for inclusion in the
Fiscal Year 2024 budget recommendation as deemed appropriate.
Open Budget
https://dollarsandcents.cityofdubuque.orq/
13
During Fiscal Year 2016, the City launched a web based open data platform. The City of
Dubuque's Open Budget application provides an opportunity for the public to explore
and visually interact with Dubuque's operating and capital budgets. This application is in
support of the five-year organizational goal of a financially responsible city government
and high-perFormance organization and allows users with and without budget data
experience, to better understand expenditures in these categories.
Open Expenses
URL: http://expenses.cityofdubuque.or�/
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
URL:http://bit.ly/fy22budgetsim
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high-priority
budget input questions, and leave comments.
Taxpayer Receipt
URL: http://bit.ly/taxpayerreceipt
During Fiscal Year 2019, the City launched an online application which allows users to
generate an estimate of how their tax dollars are spent. The tool uses data inputted by
the user such as income, age, taxable value of home, and percentage of goods
purchased within City limits. The resulting customized receipt demonstrates an estimate
of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other
city services. This tool is in support of the City Council goal of a financially responsible
and high-performance organization and addresses a Council-identified outcome of
providing opportunities for residents to engage in City governance and enhance
transparency of City decision-making.
There will be seven City Council special meetings prior to the adoption of the FY 2024
budget before the state mandated deadline of March 31, 2023, which is expected to be
amended by the State Legislature to be April 30, 2023.
The recommended resolution for maximum property tax dollars in FY2024 is
$26,318,802 (excluding the debt service levy of$304,673) or a 0.70% increase over
FY2023 property tax dollars. Since the "total maximum property tax dollars"
amount is less than 102% of the current year's property taxes (0.70% excluding
the debt service levy), the resolution must pass by a simple majority vote of the
City Council.
14
At the February 20, 2023 public hearing, the only options available to City Council
are to approve the amount of maximum property tax dollars as is or decrease it. A
simple majority vote will be required to approve the maximum property tax dollars
resolution.
The requested action step is for City Council to adopt the attached resolution setting the
public hearing date for the maximum property tax dollars as required by Section
384.15A of the Code of lowa. The attached resolution authorizes the City Clerk to
publish notification for a public hearing to be held on February 20, 2023.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
15
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2024
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Airport Additional FBO Line Service hours.The Airport will be doing all the ground handling duties for R $ 24,705 $ 14,560 $ 10,145 Y
Avelo Airlines,so an additional 25 hours per week is requested for these duties.FBO Line
staff will be cross trained with FBO general aviation ground handling duties as well as Avelo
Airlines ground handling duties
$ —
$ —
$ —
$ —
City Clerk's Office A new agenda management solution for City Council agendas if the City's current agenda R $ 11,000 $ 7,359 $ 3,641 Y
management solution is eliminated in Fiscal Year 2024.While this request is for a
replacement agenda management solution in case NovusAgenda is eliminated in Fiscal Year
2024,a replacement will not be considered during Fiscal Year 2024 if NovusAgenda is not
eliminated within the fiscal year.The amount requested is meant to cover both one-year
implementation costs($9,000)and annual maintenance for hosting and support($11,000).
City Clerk's Office Cover admission fees of the Growing Sustainable Communities Conference for all City of R $ 7,500 $ 5,081 $ 2,419 N
Dubuque boards and commissions volunteers
City Clerk's Office Up to two uniform shirts with the City of Dubuque logo for all members of the City Clerk's R $ 280 $ 187 $ 93 Y
Office.
City Manager's Office A High Performing Government(HPG)&Innovation initiative,with a Director of Innovation(or R $ 150,000 $100,350 $ 49,650 N
similar title)tasked with leading organizational development around innovation and change
and provide some funding for anticipated costs related to software,program pilots,and
implementation.
City Manager's Office Travel and conference budget for the new Climate Action Coordinator.This package includes R $ 4,245 $ 2,137 $ 2,108 Y
funding for the coordinator to participate in one national conference(likely the Urban
Sustainability Director's Network annual meeting),one state-level conference and one local
conference or workshop.
City Manager's Office Professional development for the Grant Analyst approved in FY2023. This package would R $ 3,000 $ 1,510 $ 1,490 Y
include one annual training for the Analyst for a program such as Dale Carnegie public
speaking or the ICMA high performing government academy,plus a small pool of funds to
attend other grant-related webinars or trainings.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Economic Development Administer the Cultural&Entertainment District(CED)program to the current contracted R $ 8,500 $ 8,500 N
service agreement with Dubuque Main Street(DMS).DMS currently applies for an Arts
Operating Grant to support its CED administration,but this grant is meant for nonprofit
organizations who have a primary mission to provide the general public with programs or
activities in areas directly concerned with arts,arts education,or cultural heritage.
Economic Development 15 licenses for BaseCamp,an online project management tool.BaseCamp,as recommended R $ 1,620 $ 1,620 N
by IS,is currently being tested by staff and Commissioners to facilitate efficient public/private
collaboration,providing the ability to assigning and managing tasks and progress related to
the Commission's 2022-26 Strategic Plan and the Arts&Culture Master Plan.
Economic Development An additional 1.00 FTE Support Position at GE-32.This position will administer all aspects of R $ 85,353 $ 85,353 N
ongoing Arts&Culture grant programs plus support the writing and management of external
grants.
Economic Development Continue the Creatives Cafe networking events currently held quarterly by the DEIA Working R $ 3,000 $ 3,000 Y
Group of the Arts&Culture Master Plan in partnership with City staff.The Creatives Cafe
events are currently paid for by a grant from the Government Alliance on Race&Equity;this
funding was exhausted by the end of FY22.
Economic Development Education and training for Commissioners appointed to the Arts&Cultural Affairs Advisory R $ 2,000 $ 2,000 N
Commission by covering registration fees for online learning or in-person conferences such as
the lowa Arts Summit.Funds will be applied to registration fees online and opportunities to be
supported must be vetted by the Arts&Cultural Affairs Manager.
Emergency An additional full-time dispatcher(1.0 FTE,0E-09). Due to the restructuring of the schedules R $ 54,728 $ 18,243 $ 36,485 Y
Communications for dispatchers,an additional person is needed to fill in on each of the four shifts that work in
the dispatch center.
$ —
$ —
$ —
$ —
$ —
$ —
Emergency An additional full-time dispatcher(1.0 FTE,0E-09). Due to the restructuring of the schedules R $ 53,925 $ 17,975 $ 35,950 N
Communications for dispatchers,an additional person is needed to fill in on each of the four shifts that work in
the dispatch center.
$ —
$ —
$ —
$ —
$ —
$ —
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Emergency An additional full-time dispatcher(1.0 FTE,0E-09). Due to the restructuring of the schedules R $ 54,728 $ 18,243 $ 36,485 N
Communications for dispatchers,an additional person is needed to fill in on each of the four shifts that work in
the dispatch center.
$ —
Emergency An additional full-time dispatcher(1.0 FTE,0E-09). Due to the restructuring of the schedules R $ 57,902 $ 19,301 $ 38,601 N
Communications for dispatchers,an additional person is needed to fill in on each of the four shifts that work in
the dispatch center.
Emergency An additional full-time dispatcher(1.0 FTE,0E-09). Due to the restructuring of the schedules R $ 54,728 $ 18,243 $ 36,485 N
Communications for dispatchers,an additional person is needed to fill in on each of the four shifts that work in
the dispatch center.
$ —
Engineering Education and training for one(1)Utility Locator position.In FY 23,a Utility Locator position R $ 305 $ 305 Y
was added to the Engineering Department.Education and training funds are necessary to
keep employees current on skills for their positian.
$ —
Engineering Education and training for one(1)Engineering Technician.An Engineering Technician position R $ 1,220 $ 1,220 Y
was added to the department in FY 23.Training funds are necessary for building skills for this
position going forward.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Engineering All-weather outervvear for department staff who are required to work outside at active R $ 2,600 $ 2,600 Y
construction sites and inspect city infrastructure during all types of weather conditions
including extreme cold,snow,rain,and extreme heat
Engineering Supplement the landscape maintenance work that the Leisure Services Department provides R $ 7,000 $ 7,000 N
for buildings that are managed by the Facilities Maintenance Team(FMT).
Engineering Exterior window cleaning for buildings managed by the Facility Management Team(FMT). R $ 10,000 $ 10,000 N
Office of Equity and A full-time Administrative Assistant(1.0 FTE,GE-25) for the Equity&Human Rights R $ 64,877 $ 64,877 N
Human Rights Department to support staff members
$ —
$ —
Office of Equity and Host an annual two-day Equitable Communities conference to bring together partnerships at R $ 30,000 $ 30,000 N
Human Rights the local,state,and federal levels to promote the building of equitable communities.
Conference attendees would include government officials,nonprofit leaders,business leaders,
educators,and presenters and facilitators would be drawn from these groups
Fire One full-time Firefighter position to the Fire Department(1.0 FTE/F-01).This improvement R $ 94,128 $ — $ 94,128 Y
package is in line with the current Fire Station Expansion/Relocation Capital Improvement
Project(CIP)and is currently a high City Council priority. The approved expansion/relocation
CIP includes the addition of two firefighters for each year in 2024,2025 and 2026.
Fire One full-time Firefighter position to the Fire Department(1.0 FTE/F-01).This improvement R $ 94,128 $ — $ 94,128 N
package is in line with the current Fire Station Expansion/Relocation Capital Improvement
Project(CIP)and is currently a high City Council priority. The approved expansion/relocation
CIP includes the addition of two firefighters for each year in 2024,2025 and 2026.
Fire A Community Risk Reduction Specialist position to work in the Fire Prevention Division(1.0 R $ 66,205 $ 66,205 N
FTE/GE-25). This position would be responsible for the coordination of community events,
participation and scheduling of educational events,assessment and analysis of community risk
reduction efforts,response data as well as the promotion of the fire department to diverse
groups in the community.
$ —
Fire An additional Administrative Assistant(1.0 FTE/GE-25).The added position would assist in R $ 66,205 $ 66,205 Y
all the areas the current Administrative Assistant is responsible for,help with succession
planning,serve as backup along with specializing in EMS billing support,cost reporting,
revenue,grant management and accreditation documentation and reporting.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Health Microchip implantation on dogs and cats that have been impounded at the Dubuque Regional R $ 5,000 $ 5,000 N
Humane Society because they were found running loose in the community. The improvement
package would cover the cost of 200 microchips plus implantation fee by the Dubuque
Regional Humane Society staff and the initial registration of the microchip.
Human Resources Hire outside trainers and speakers for employees on topics such as diversity/equity/inclusion, R $ 32,480 $ 32,480 Y
collaboration and impact,and customer service and communication
Human Resources Two training and facilitation teams currently supporting the work of the Development and R $ 4,063 $ 4,063 Y
Learning Manager—the High Pertorming Government Ambassadors and the Intercultural
Facilitators.Funding would be utilized to train up to four new team members annually to
become trained trainers.
Human Resources Incentive program for trainers/facilitators who provide employee training for purposes of new R $ 11,241 $ 11,241 Y
employee orientation,new supervisor orientation,and/or universal competencies. Funds
would cover costs of vacation time,recognition leave,and/or a stipend in amount of$50/hour
of eligible training or facilitation delivered
Human Resources Office 365/technology-related training for employees.The City has historically contracted with R $ 13,000 $ — $ 13,000 Y
the vendor"Get Control University"to provide this specific type of training,and that 3-year
contract expires in FY 2023.
Information Services Adding a part-time(0.5 FTE,GE-25)Secretary/Administrative Assistant.Due to the growth in R $ 23,683 $ 23,683 N
staff,technology support needs,and workload of the Information Services staff,there is a gap
in staff support services,including payroll preparation,budget preparation,processing
purchasing cards,and purchase orders.
Information Services Security software and tools for conducting monthly scans of our technology environment to R $ 4,000 $ 4,000 Y
show areas of concern and where we need to make changes to better secure our
network/systems.
Information Services An online course-based learning system specifically geared to advanced technical training and R $ 1,200 $ 1,200 Y
support for IT professionals. The package proposes a course-based solution with a repository
ofthousands ofstructuredlearning classes with secure,hands-on content,including
sandboxes,labs,and real-world projects.
Information Services Three staff members to attend the 2024 Annual User and Education Conference for the new R $ 8,490 $ 8,490 Y
Tyler software.Travel,per diem,and hotel costs are calculated for three staff,and registration
is for 1,as our Tyler support agreement includes 2 conference attendance passes.
AmeriCorps Financing the salary and benefits for the AmeriCorps Division Administrative Assistant(1.0 R $ 57,939 $ 57,939 N
FTE,GE-25)so that grant funds can be redirected into AmeriCorps Living Allowance and
Direct Service Delivery improvements.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
AmeriCorps Financing the salary and benefits for the AmeriCorps Coordinator(1.0 FTE,GE-31)so that R $ 85,011 $ 85,011 N
grant funds can be redirected into AmeriCorps Living Allowance and Direct Service Delivery
improvements.
Multicultural Family Addition of 910 hours of site supervision(temp/seasonal)to the Multicultural Family Center by R $ 21,183 $ 21,183 Y
Center Site Supervisors. With the opening of the Multicultural Family Center,the need for site
supervision to assist patrons from the hours of 8:45 am-12:15 pm on Monday through Friday
will allow for technical assistance to the computer lab during these hours,setup for morning
events and activities,and adds an additional site supervisor to bring the total to 3
Parks Hiring a contractor to maintain numerous natural and native landscapes throughout the City. In R $ 30,000 $ 30,000 N
recent years,native plants have been planted in the Bee Branch Creek Greenway,Valentine
Park,Four Mounds Park,Eagle Point Park,Creek Wood Park,32nd Street Detention Basin,
and along the Catfish Creek. These areas all require a level of maintenance that the Park
Division does not have the capacity to manage.
Parks Addition of one full-time confidential account clerk(GE-25 and 1.0 FTE)to service Leisure R $ 62,579 $ 62,579 Y
Services. This position would support the Project and Facilities Manager,move AmeriCorps
financial management from the Finance Department,assist with budget inputting,grant
support,support coverage of customer service desk at Multicultural Family Center and assist
with purchasing card processing for the department.
Parks A full-time Maintenance Technician(1.0 FTE at GD-06)to be assigned to the park areas and R $ 36,812 $ 36,812 N
maintenance activity of the Park Division. The division has struggled to hire temporary
positions the last few years.
Parks Conversion of boiler heat to natural gas at the park maintenance headquarters complex.This R $ 1,500 $ (1,500) Y
final phase will install 3 forced air heaters in the park maintenance shop on the east side of the
complex. It is anticipated that these 3 heaters will save approximately$1,500 in gas utility
cost.
Recreation Three annual department-wide(Park,Recreation,Multicultural Family Center,AmeriCorps) R $ 2,500 $ 2,500 Y
trainings around professional development and equitable service delivery.
Recreation Fee increases for the Bunker Hill Golf Course. The proposed fee increases are:$15 increase R $ — $ 21,143 $ (21,143) Y
on season golf&cart passes;$10 increase on cart punch cards;$1 increase to weekend golf
fees and daily cart rentals. In total,these fee increases would amount to an additional
$21,143 in annual revenue for the golf course based on the 2022 season user data.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Library Upgrade a part-time Circulation Assistant to a full-time position.The Circulation Staff has seen R $ 44,857 $ 44,857 N
all their part-time staff members leave in the past year for full-time opportunities.This would
create greater coverage for scheduling needs and better training/coaching for part-time staff
$ —
$ —
Library Upgrade a part-time Circulation Lead Library Assistant to a full-time position.The Circulation R $ 38,065 $ 38,065 Y
Staff has seen all their part-time staff members leave in the past year for full-time
opportunities.This would create greater coverage for scheduling needs and better
training/coaching for part-time staff
$ —
$ —
$ —
$ —
$ —
Library A part time Marketing Coordinator position(.50 FTE,GE-28)to be added to Administration. R $ 37,198 $ 37,198 N
Previously,a marketing firm was used with uninspiring results.
$ —
$ —
Office of Shared Turn an existing part-time Administrative position(.66 FTE,GE-25)into a full-time role (1.00 R $ 41,814 $ 41,814 N
Prosperity& FTE,GE-25)to meet the needs of a growing department,such as coordinate and manage
Neighborhood Support daily workflows,plan and schedule meetings between stakeholders,oversee payroll,manage
the new Tyler system to process neighborhood grant applications and reimbursements,
maintain and order necessary office equipment and supplies for new office space, collect and
organize information,and help develop process improvements for City Life.
$ —
$ —
Planning Services Sending two Assistant Planners or the Assistant Planner and the Planning Technician to the R $ 2,000 $ 1,171 $ 829 Y
lowa American Planning Association(APA)Conference. Currently,the Planning Services
Manager and Associate Planner are budgeted to attend the lowa APA Conference. This will
allow a rotation of an additional Planning staff member to attend.
Planning Services Planning Services Manager to attend the Housing lowa Conference(HIC). The HIC is a R $ 1,000 $ 586 $ 414 Y
celebration of the housing industry's leading role in thriving lowa communities and robust
economy.It provides national trainings,hands-on workshops,diverse sessions focusing on
timely topics and opportunities to network with industry peers.
Planning Services Planning Staff Member to attend the lowa Bicycle Summit. The Planning Services Department R $ 319 $ 187 $ 132 Y
works with the Engineering and Leisure Services Departments on bike/hike trails in Dubuque.
This bike conference will provide Planning Staff the opportunity to learn about biking in lowa
and to gather ideas that could be implemented in Dubuque.
Planning Services A subscription to the Telegraph Herald. The newspaper frequently publishes articles about R $ 340 $ 199 $ 141 Y
projects that the Planning Services Department is directly involved.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Planning Services A membership to the Chamber of Commerce's Young Professionals Dubuque(YPD) R $ 60 $ 35 $ 25 Y
organization. A membership provides an opportunity for a young planning professional staff
member to develop leadership skills while participating in the largest networking organization
in the Tri-State area with a focus on developing young professionals.
Police This improvement package request is for the addition of two Crisis Intervention Team(CIT) R $ 199,550 $ 83,333 $ 116,217 Y
Officer Positions(2.00 FTE,P-01).In 2022,the Police Department saw an almost 100%
increase in calls for service related to brain health issues.City receives an$83,333 Federal 3-
year qrant for these positions.
Police This improvement package request is for the purchase of an Automated License Plate Reader R $ 58,000 $ — $ 58,000 Y
system.
Police Lieutenants and Captains to apply for nationally recognized police executive training,such as R $ 12,000 $ — $ 12,000 Y
the Federal Bureau of Investigation(FBI)National Academy in Quantico,VA,the Northwestern
University Staff and Command school(various locations)and the Senior Management Institute
for Police at Boston University. The costs of the schools and travel is approximately$12,000
per student.Requested$45,000.Recommended$12,000.
Police New technology that allows drones to be used for outdoor crime scene and traffic accident R $ 25,000 $ 25,000 Y
reconstruction.This includes GPS-based survey equipment,a drone,training,and computer
software primarily for use with major outdoor crime scenes and fatality accident investigations.
Police An increase in the patrol training budget.Over half of the patrol division has less than 5 years R $ 11,523 $ 11,523 Y
on the department. Training has become more essential with loss of experience.
Public Information Office A GIS Applications Specialist to the GIS Office(1.00 FTE,GE-30).The demand for GIS data, R $ 75,825 $ 44,411 $ 31,414 N
maps,and applications continues to grow within the organization.
Public Information Office Esri's Advantage Program,which provides an annual geospatial strategy meeting with city R $ 56,500 $ 33,093 $ 23,407 Y
departments and access to a technical advisor,access to premium support services,
additional training,and consulting.
Public Information Office Addition of a GIS Data Analyst to the GIS Office(1.00 FTE GE30) R $ 75,825 $ 31,847 $ 43,978 N
$ —
$ —
$ —
$ —
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
RECURRING DECISION PACKAGE COSTS-General Fund
Public Information Office GIS Office conference attendance to cover the increased costs of conference attendance and R $ 3,000 $ 1,757 $ 1,243 Y
allow the GIS Coordinator to attend a regional conference every year.
Public Works A Public Works Data Scientist(1.00 FTE,GE37).As the Public Works Department R $ 23,341 $ 30,000 $ (6,659) N
implements our strategic plan in accordance with the APWA Accreditation process,the data
scientist would pull comprehensive data necessary to show how Public Works is pertorming in
all areas and how that pertormance measures up to council goals and objectives,climate
action plan,and equity and poverty prevention plan.
Public Works This improvement level decision package provides funds to send two(2)administrative staff to R $ 9,000 $ 9,000 N
one national conference each year for training.
Transportation Services- This improvement request is for payment of expenses related to the preparation of grant R $ 35,000 $ 35,000 Y
Transit applications.
TOTAL GENERAL FUND RECURRING PACKAGES $2,163,280 $472,451 $1,690,829
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2024
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact YIN
NON-RECURRING DECISION PACKAGE COSTS
City Clerk's Office A new agenda management solution for City Council agendas if the City's current N $ 9,000 $ 6,021 $ 2,979 Y
agenda management solution is eliminated in Fiscal Year 2024.While this
request is for a replacement agenda management solution in case NovusAgenda
is eliminated in Fiscal Year 2024,a replacement will not be considered during
Fiscal Year 2024 if NovusAgenda is not eliminated within the fiscal year.The
amount requested is meant to cover both one-year implementation costs($9,000)
and annual maintenance for hosting and support($11,000).
City Clerk's Office To provide equipment for Asst City Clerk to work from home on part-time basis N $ 3,225 $ 2,158 $ 1,067 Y
City Manager's Office 50%by 2030 Community Climate Action and Resiliency Plan.Research and N $ 25,000 $ 12,583 $ 12,417 Y
develop energy benchmarking policies for all municipal facilities and draft
community-wide benchmarking ordinance.Funding would also help with
communication and education related to benchmarking ordinances and pay for
consultant services.
City Manager's Office Establishing city fleet policies,executing an EV Transition Study,and creating N $ 20,000 $ 10,066 $ 9,934 Y
and executing an education and communication campaign.The funding would
support consultation of policy including future budget impacts as well as support
the electrification of city-owned fleet.
$ —
City Manager's Office For outreach,education,and empowerment activities related to the Climate N $ 25,000 $ 12,583 $ 12,417 Y
Action Plan(CAP).The request is to fund capacity building and engagement,
particularly in frontline communities while addressing our greenhouse gas
emissions reduction goal.
$ —
City Manager's Office Provide and replace hybrid work equipment for the Executive Assistant and N $ 6,425 $ 3,234 $ 3,191 Y
Administrative Assistant in the City Manager's Office.
$ —
$ —
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
NON-RECURRING DECISION PACKAGE COSTS
Conference Center Funding related to a new management agreement for Grand River Center N $ 370,000 $ 370,000 Y
resulting from completion of the current proposal process. The negotiation
process may yield specific items being required that need funding.
Economic Development Computer equipment for part-time grants administration support position(.50 FTE N $ 3,150 $ 3,150 Y
at GE-32).This position will administer all aspects of ongoing Arts&Culture grant
programs plus support the writing and management of external grants.
Economic Development Laptop computer equipment for the confidential account clerk position(which is N $ 3,265 $ 3,265 Y
currently remote)to continue and realign with the computer replacement schedule
for FY24 and enhance restructuring of city facility space.
Engineering One additional utility locator unit.Since 2010,the number of utility locate requests N $ 3,000 $ 3,000 Y
in the City has nearly doubled,growing from approximately 5,500 to 10,500
requests per year.
Engineering Two laptops for department engineers&technicians to share which will N $ 1,734 $ 1,734 Y
measurably improve the productivity of department staff that handles data that
must be transferred by USB drives.The recently enacted Information Services
policy on eliminating access to universal serial bus(USB)drives for cyber security
reasons has significantly impacted the workflow of department staff to efficiently
access and download data from several important types of field equipment.
Engineering A Youth AmeriCorps Program position to administer the Engineering N $ 4,334 $ 4,334 Y
DepartmenYs planned classroom and summerjob training program for high
school students,along with the classroom and job shadowing program for junior
high students related to working for the City's Engineering Department for those
who would consider the architecture/engineering/construction field as a career
choice.
Engineering A 12-month engineering intern position.This improvement will allow the N $ 3,279 $ 3,279 Y
Engineering Department to update and customize our current Department
Construction Safety Manual.
$ —
$ —
Engineering An intern position to assist full-time department staff with sorting through volumes N $ 5,640 $ 5,640 Y
of department records that date back to being over 140 years old.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
NON-RECURRING DECISION PACKAGE COSTS
Engineering A wet mop floor scrubber for City Hall. This clean equipment cleans up to 70% N $ 4,800 $ 4,800 Y
faster than conventional wet mopping.
Engineering Metal detectors that are used on a regular basis by sixteen department staff N $ 1,500 $ 1,500 Y
members.
Office of Equity and iPhone/Case,Laptops/monitors,iPad/case/keyboard/pen for Administrative N $ 4,770 $ 4,770 Y
Human Rights Assistant in Equity&Human Rights
$ —
$ —
$ —
Fire Uniforms for Firefighter N $ 550 $ 550 Y
Fire Uniforms for Firefighter N $ 550 $ 550 N
Fire Computer&Accessories for Community Risk Reduction Specialist N $ 2,595 $ 2,595 N
Fire Computer&Accessories for Administrative Assistant N $ 2,595 $ 2,595 Y
Health Services Paying private contractors to mitigate nuisances where we have a court order to N $ 40,000 $ 40,000 Y
correct the nuisance/clean up.
Health Services New Environmental Sanitarian/Preparedness employee to have their own N $ 700 $ 700 Y
Cooper/Atkins digital thermometer with micro needle and a Fluke infrared
thermometer to use during routine food service inspections.
Health Services A new office chair for an Animal Control Officer. N $ 463 $ 463 Y
Health Services A vehicle for a Health Services Environmental Sanitarian/Emergency N $ 25,000 $ 25,000 Y
Preparedness Planner position
Health Services Provide and replace computer equipment deployed during COVID for remote N $ 3,758 $ 3,758 Y
working from home.The Account Clerk will need a laptop equipment
replacement, while the Public Health Director will need additional hardware
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
NON-RECURRING DECISION PACKAGE COSTS
Health Services Environmental Sanitarian to sit for the National Environmental Health Association N $ 590 $ 590 Y
(NEHA)REHS/RS credential exam.REHS/RS credential holders are key
members in ensuring communities are in compliance with local,state,and federal
environmental health regulations. One of the current Environmental Sanitarians
has held this credential since 1999.
Health Services Environmental Sanitarian to attend the National Environmental Health N $ 1,495 $ 1,495 Y
Association Region 4 Fall Conference in Fargo,ND.The main objectives of the
training are to learn about the latest practices,data and research related to the
regional NEHA affiliates practice in environmental health.
Health Services Environmental Sanitarian/Preparedness Planner to attend the National N $ 5,119 $ 5,119 Y
Environmental Health Association(NEHA)Leadership Academy. The NEHA
leadership program will help support the Environmental Health profession and
spearhead current issues and possible solutions in our community.
Information Services Telephone/Computer for Administrative Assistant N $ 2,610 $ 2,610 N
Information Services An additional core switch for the core stack at City Hall Annex.Core switches N $ 16,285 $ 16,285 Y
serve as the gateway to a wide area network(WAN)or the Internet-they provide
the final aggregation point for the network and allow multiple aggregation
modules to work together.
Information Services Replacement of 5 projectors that are either assigned to the IS Department or N $ 4,000 $ 4,000 Y
have come to the department from other departments.All are at least six years
old and would be used for presentations and used for check-out for presentations
in locations where a projector is not available or as a contingency in conference
rooms should a projector or smart TV fail.
Library An opening reception for the lowa Library Association annual conference,which N $ 3,000 $ 3,000 Y
will be at the Grand River Center in Dubuque October 11 -13,2023.
Parks Additional pollinator areas throughout the park system.This funding would N $ 10,000 $ 10,000 Y
provide for pollinator areas at Murphy Park,Flora Park,and other park locations.
Requested$50,000.Recommended$10,000.
Parks Office Chair,Mitel extension/mailbox license,computer for Confidential Account N $ 2,750 $ 2,750 N
Clerk
Parks Replacing the furnace in the building that houses the Park Division Manager. N $ 9,500 $ 9,500 Y
The furnace is over 40 years old,and the replacement would be a combination
furnace/air conditioner unit. There is currently no air conditioning in the building
Parks Final phase of the conversion from boiler heat to natural gas at the park N $ 25,000 $ 25,000 Y
maintenance headquarters complex.This final phase will install 3 forced air
heaters in the park maintenance shop on the east side of the complex. It is
anticipated that these 3 heaters will save approximately$1,500 in gas utility cost.
Department Description R/N ADDL ADDL Net Tax MVM
Expense Revenue Impact Y/N
NON-RECURRING DECISION PACKAGE COSTS
Parks A video projector and retractable projector screen to be installed at the park N $ 1,500 $ 1,500 Y
maintenance headquarters complex for staff training exercises.
Parks A mini excavator for the Park Division.Park staff are able complete some of N $ 85,000 $ 85,000 Y
these projects in-house which would reduce the cost of hiring a contractor.
Planning Services City of Dubuque shirts.The shirts consist of polos and long sleeve shirts with an N $ 330 $ 193 $ 137 Y
embroidered"City of Dubuque Masterpiece on the Mississippi Logo"and the text
"Planning Services DepartmenY'
Planning Services Planning Technician's enrollment in Leadership Dubuque. Leadership Dubuque N $ 1,495 $ 876 $ 619 Y
promotes civic responsibility by encouraging community involvement and is
designed to develop and connect existing and emerging professional leaders with
the goal of enhancing positive growth within our business community.
Planning Services Planning Technician's enrollement in Dale Carnegie Training. N $ 1,995 $ 1,168 $ 827 Y
Police This improvement package request if for the purchase of an Automated License N $ 15,000 $ — $ 15,000 Y
Plate Reader system.
Public Information Office iPad/Case/Keyboard and Engineering Desktop Computer for GIS Applications N $ 3,320 $ 3,320 N
Specialist
$ —
Public Information Office iPad/Case/Keyboard and Engineering Desktop Computer for GIS Data Analyst N $ 3,320 $ 3,320 N
$ —
Public Works iPad/Accessories,Computer&Monitors,iPhone for Data Scientist N $ 4,500 $ 4,500 N
Public Works Five(5)additional tablets and cases which would allow field staff to enter their N $ 4,600 $ 4,600 Y
time on a device.This request is related to the Tyler Implementation plan to have
each employee enter their time directly into the Tyler system each day
TOTAL GENERAL FUND NON-RECURRING PACKAGES 771,742 48,882 722,860
SUMMARY OF ALL DECISION(IMPROVEMENT)PACKAGES FOR NON-PROPERTY TAX FUNDS Fiscal Year zoz4
Department Description �N ADDL ADDL Net Tax Impact MVM
Expense Revenue Yes/No
MEDIA SERVICES FUND(CABLE TV)
Upgrade the part-time(0.5 FTE)Communications Assistant position to a full-time
Communications Specialist.The position is vacant and was recently transferred from
Public Information Leisure Services to PIO.It will be dedicated to communications support of Leisure
Office Services activities/programs. R $ 25,220 $ — $ 25,220 N
A$3,000 annual budget for overtime incurred by hourly PIO staff.There is currently$0
budgeted for overtime and hourly staff must use comp time if they're needed to work
Public Information over 40 hours in any given week.Funding this request would provide for emergency
Office overtime when needed due to unforeseen circumstances R $ 3,000 $ 3,000 Y
Social media archiving services from a vendor.Doing so will protect the City from
Public Information liability of not being able to comply with FOIA and public records requests for complete
Office and accurate records of social media content managed by the City. R $ 7,200 $ 7,200 Y
$ —
Subtotal Medial Services Fund $ 35,420 $ — $ 35,420
SALES TAX CONSTRUCTION(20%)
Ten cameras in the public areas of GRC. No security cameras are in the public space,
Conference Center entrances or exits. N $ 30,000 $ — $ 30,000 N
$ —
Subtotal Sales Tax Increment Fund $ 30,000 $ — $ 30,000
GARAGE SERVICE
FUND
Public Works A Public Works Data Scientist(1.00 FTE,GE-37).As the Public Works Department R $ (15,000) $ (15,000) N
implements our strategic plan in accordance with the APWA Accreditation process,the
data scientist would pull comprehensive data necessary to show how Public Works is
performing in all areas and how that performance measures up to council goals and
objectives,climate action plan,and equity and poverty prevention plan.
Public Works A fleet maintenance staffing study for the vehicle maintenance activity. N $ 30,000 $ 30,000 Y
Subtotal Internal Service Fund $ 15,000 $ — $ 15,000
Stormwater Fund
Department Description �N ADDL ADDL Net Tax Impact MVM
Expense Revenue Yes/No
Education and training for one(1)Utility Locator position.In FY 23,a Utility Locator
position was added to the Engineering Department.Education and training funds are
Engineering necessary to keep employees current on skills for their position. R $ 305 $ 305 Y
One additional utility locator unit.Since 2010,the number of utility locate requests in the
Engineering City has nearly doubled,growing from approximately 5,500 to 10,500 requests per year. N $ 3,000 $ 3,000 Y
Two laptops for department engineers&technicians to share which will measurably
improve the productivity of department staff that handles data that must be transferred
by USB drives.The recently enacted Information Services policy on eliminating access
to universal serial bus(USB)drives for cyber security reasons has significantly
impacted the workflow of department staff to efficiently access and download data from
several important types of field equipment.
Engineering N $ 1,733 $ 1,733 Y
$ —
All-weather outerwear for department staff who are required to work outside at active
construction sites and inspect city infrastructure during all types of weather conditions
Engineering including extreme cold,snow,rain,and extreme heat R $ 2,600 $ 2,600 Y
Outsourcing of required OSHA training that was formally provided by the Fire
Department. Funds will provide for 16 training slots to already-qualified personnel within
Engineering our department. R $ 2,400 $ 2,400 Y
$ —
A Youth AmeriCorps Program position to administer the Engineering DepartmenYs
planned classroom and summer job training program for high school students,along
with the classroom and job shadowing program forjunior high students related to
working for the City's Engineering Department for those who would consider the
Engineering architecture/engineering/construction field as a career choice. N $ 4,333 $ 4,333 Y
A 12-month engineering intern position.This improvement will allow the Engineering
Department to update and customize our current Department Construction Safety
Engineering Manual. N $ 3,278 $ 3,278 Y
An intern position to assist full-time department staff with sorting through volumes of
Engineering department records that date back to being over 140 years old. N $ 5,639 $ 5,639 Y
Engineering Metal detectors that are used on a regular basis by sixteen department staff members. N $ 1,500 $ 1,500 Y
A full-time Maintenance Technician(GD-06 and 1.0 FTE)for the Bee Branch Creek
Greenway area. Staff has struggled to fill temporary positions for this particular activity
Parks in the Park Division. R $ 58,791 $ 58,791 N
R
R
R
R
R
R
R
Department Description �N ADDL ADDL Net Tax Impact MVM
Expense Revenue Yes/No
Subtotal Stormwater Fund $ 83,579 $ — $ 83,579
Water Fund
Education and training for one(1)Utility Locator position.In FY 23,a Utility Locator
position was added to the Engineering Department.Education and training funds are
Engineering necessary to keep employees current on skills for their position. R $ 305 $ 305 Y
$ —
$ —
One additional utility locator unit.Since 2010,the number of utility locate requests in the
Engineering City has nearly doubled,growing from approximately 5,500 to 10,500 requests per year. N $ 3,000 $ 3,000 Y
This improvement package request is for the elimination of the Water Engineering
Assistant position(-1.0 FTE,GE33)and the creation of a Water Project Manager(1.0
Water FTE,GE-38). R $ 35,578 $ 35,578 N
Two additional Water Distribution Maintenance Workers(2.0 FTE,0E-09).As the
distribution system continues to grow,the need for routine operation and maintenance
grows also.Eliminates$180,000 in consulting contracts if both positions approved.One
Water position is recommended. R $ (10,800) $ (10,500) Y
N $ 1,730 $ 1,730
Elimination of a Water Meter Repair Worker II(-1.0 FTE,0E-14)and the addition of a
Water Meter Foreman(1.0 FTE,GE-31).The meter program presents daily
opportunities and challenges that require in-depth problem solving and data analysis
Water beyond the job duties as described in the Water Meter Repair Worker II job description. R $ 5,681 $ 8,681 Y
$ —
Upgrade the ruggedized cell phone to a smartphone for the Water Treatment Operator.
A smartphone would enable the Operator to have access to WebQA and GIS mapping
during the response to an emergency,improving the time it takes to inform distribution
Water crews. N $ 586 $ 586 Y
Department Description �N ADDL ADDL Net Tax Impact MVM
Expense Revenue Yes/No
A stand-alone SureCall Cellular Distributed Antenna System(DAS)for the Water
Department Staff at the City of Dubuque Eagle Point Water Treatment Plant.This
system would boost the cellular signal for the areas in the Eagle Point Water Treatment
Water Plant where cellular signal cannot be obtained. N $ 68,770 $ 68,770 N
Subtotal Water Fund $ 29,813 $ — $ 107,850
ROAD USE TAX
FUND
Engineering Metal detectors that are used on a regular basis by sixteen department staff members. N $ 1,500 $ 1,500 Y
Public Works A Public Works Data Scientist at(1.00 FTE,GE-37).As the Public Works Department R $ 7,500 $ 7,500 N
implements our strategic plan in accordance with the APWA Accreditation process,the
data scientist would pull comprehensive data necessary to show how Public Works is
performing in all areas and how that performance measures up to council goals and
objectives,climate action plan,and equity and poverty prevention plan.
Road pavement sensors and software that would provide information on pavement
Public Works conditions prior to a winter storm. R $ 7,000 $ 7,000 Y
Subtotal Road Use Tax Fund $ 16,000 $ — $ 16,000
Sanitary Sewer
Fund
Education and training for one(1)Utility Locator position.In FY 23,a Utility Locator
position was added to the Engineering Department.Education and training funds are
Engineering necessary to keep employees current on skills for their position. R $ 305 $ 305 Y
$ —
One additional utility locator unit.Since 2010,the number of utility locate requests in the
Engineering City has nearly doubled,growing from approximately 5,500 to 10,500 requests per year. N $ 3,000 $ 3,000 Y
$ —
Two laptops for department engineers&technicians to share which will measurably
improve the productivity of department staff that handles data that must be transferred
by USB drives.The recently enacted Information Services policy on eliminating access
to universal serial bus(USB)drives for cyber security reasons has significantly
impacted the workflow of department staff to efficiently access and download data from
Engineering several important types of field equipment. N $ 1,733 $ 1,733 Y
All-weather outerwear for department staff who are required to work outside at active
construction sites and inspect city infrastructure during all types of weather conditions
Engineering including extreme cold,snow,rain,and extreme heat R $ 2,600 $ 2,600 Y
Outsourcing of required OSHA training that was formally provided by the Fire
Department. Funds will provide for 16 training slots to already-qualified personnel within
Engineering our department. R $ 2,400 $ 2,400 Y
Department Description �N ADDL ADDL Net Tax Impact MVM
Expense Revenue Yes/No
A Youth AmeriCorps Program position to administer the Engineering DepartmenYs
planned classroom and summer job training program for high school students,along
with the classroom and job shadowing program forjunior high students related to
working for the City's Engineering Department for those who would consider the
Engineering architecture/engineering/construction field as a career choice. N $ 4,333 $ 4,333 Y
A 12-month engineering intern position.This improvement will allow the Engineering
Department to update and customize our current Department Construction Safety
Engineering Manual. N $ 3,278 $ 3,278 Y
An intern position to assist full-time department staff with sorting through volumes of
Engineering department records that date back to being over 140 years old. N $ 5,639 $ 5,639 Y
Engineering Metal detectors that are used on a regular basis by sixteen department staff members. N $ 1,500 $ 1,500 Y
This improvement package request is for an Assistant Water&Resource Recovery
Center Manager.Industrial Pre-Treatment Fee Revenues were increased in
WRRC maintenance level and offset a portion of this position. R $ 101,788 $ 101,788 Y
N $ 3,570 $ 3,570
Subtotal Sanitary Sewer Fund $ 130,146 $ — $ 130,146
Solid Waste Fund
Public Works A Public Works Data Scientist(1.00FTE,GE-37).As the Public Works Department R $ — $ — N
implements our strategic plan in accordance with the APWA Accreditation process,the
data scientist would pull comprehensive data necessary to show how Public Works is
performing in all areas and how that performance measures up to council goals and
objectives,climate action plan,and equity and poverty prevention plan.
Department Description �N ADDL ADDL Net Tax Impact MVM
Expense Revenue Yes/No
A safe driving class including the use of driver simulation training for Public Works staff
assigned to the collection of solid waste materials.The training would be focused on
Public Works driving solid waste trucks and the hazards a driver may encounter on a regular basis R $ 30,000 $ 30,000 N
A part-time intern position in the Public Works DepartmenYs solid waste activity.If
funded,the curbside collection intern would play a crucial role in supporting the
Resource Management Supervisor and the curbside collection crew in waste
Public Works minimization and keeping the City clean. R $ 13,568 $ 13,568 Y
Additional 96-gallon recycling carts to meet the demand of customers who prefer a
Public Works more convenient way to manage their recycling. N $ 30,000 $ 30,000 Y
Public Works An additional air conditioning unit to serve the traffic signal maintenance shop. N $ 9,000 $ 9,000 Y
Subtotal Solid Waste Fund $ 82,568 $ — $ 82,568
Landfil I
A Public Works Data Scientist(1.00FTE GE-37).As the Public Works Department
implements our strategic plan in accordance with the APWA Accreditation process,the
data scientist would pull comprehensive data necessary to show how Public Works is
performing in all areas and how that performance measures up to council goals and N
objectives,climate action plan,and equity and poverty prevention plan.
Public Works R $ 12,500 $ 12,500
$ —
$ —
$ —
$ —
$ —
$ —
Replace portable litter fencing which has reached the end of iYs service life and provide Y
Public Works additional portable units to be used near the open face area at the landfill. R $ 55,000 $ 85,000
Public Works A portable radio for use by the Solid Waste Agency Administrator. N $ 4,263 $ 4,263 Y
R $ 300 $ 300 Y
Landfill Facility Supervisor to attend one of the two SWANA National Conferences each Y
Public Works year. R $ 3,100 $ 3,100
Department Description �N ADDL ADDL Net Tax Impact MVM
Expense Revenue Yes/No
Thirteen additional container metering devices to be utilized in the Agency's comingled Y
and glass recycling containers.
Public Works N $ 2,600 $ 2,600
R $ 5,400 $ 5,400 Y
A tabletop exercise for two scenarios related to the landfill fire plan.The consultant
would develop and conduct the sessions which would involve the various entities which Y
Public Works support the landfill in the event or a fire. N $ 17,000 $ 17,000
Organize and gather data related to the assets utilized by the gas system,leachate
collection system and ground water monitoring wells.The data would then be uploaded Y
Public Works into Cartegraph N $ 10,000 $ 10,000
This improvement package would support the current Environmental Management
System(EMS)Objective&Target for the Education component.The goal is to
decrease the percentage of materials currently in the landfill waste stream which could Y
be diverted for recycling/reuse,including but not limited to tires,appliances,e-scrap,
household and non-household hazardous waste,and organics.
Public Works N $ 25,000 $ 25,000
Replace the current scale software utilized for landfill and Regional Collection Center
activities.The current software has limited capabilities for automation of tasks and data Y
Public Works 9eneration N $ 80,000 $ 80,000
R $ 5,600 $ 5,600 Y
Subtotal Landfill Fund $ 250,763 $ — $ 250,763
TOTAL NON-PROPERTY TAX FUND PACKAGES $ 712,308 $ — $ 751,326
TOTAL IMPROVEMENT PACKAGES ALL FUNDS $ 3,647,330 $ 521,333 $ 3,165,015
FY 2024 Budget & Fiscal Policy Guidelines
Page 1
CITY OF DUBUQUE
BUDGET & FISCAL POLICY GUIDELINES
F I SCAL YEAR 2024
FY 2024 Budget & Fiscal Policy Guidelines
Page 2
Operating Budget Guidelines
The Policy Guidelines are developed and adopted by City Council during the budgeting
process to provide targets or parameters within which the budget recommendation will
be formulated, in the context of the City Council Goals and Priorities established in
August 2022. The final budget presented by the City Manager may not meet all these
targets due to changing conditions and updated information during budget preparation.
To the extent the recommended budget varies from the guidelines, an explanation will
be provided in the printed budget document. By State law, the budget that begins July 1,
2023 must be adopted by March 31, 2023.
A. RESIDENT PARTICIPATION
GUIDELINE
To encourage resident participation in the budget process, City Council will hold
multiple special meetings in addition to the budget public hearing for the purpose of
reviewing the budget recommendations for each City department and requesting public
input following each departmental review.
The budget will be prepared in such a way as to maximize its understanding by
residents. Copies of the recommended budget documents will be accessed via the
following:
a. The City Clerk's office, located in City Hall (printed)
b. The government documents section at the Carnegie Stout Public Library
(printed)
c. On the City's website at www.cityofdubuque.org/budget (digital)
Opportunities are provided for resident input prior to formulation of the City Manager's
recommended budget and will be provided again prior to final Council adoption, both at
City Council budget special meetings and at the required budget public hearing.
Timeline of Public Input Opportunities
The Budget Office conducted community outreach with Balancing Act using print and
digital marketing and presentations.
• October: Point Neighborhood Association.
• October: City staff participated in City Life presentations on the budget process
and attendees had the opportunity to prioritize real City projects.
FY 2024 Budget & Fiscal Policy Guidelines
Page 1
• 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.
A total of 27 community members attended budget presentations. There have
been 252 page views of the Balancing Act budget simulator tool and 8 budgets
have been submitted by the public as of January 19, 2023. The input provided will
be analyzed by City staff and evaluated by the City Manager for inclusion in the
Fiscal Year 2024 budget recommendation as deemed appropriate.
Open Budget
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-performance organization and allows users with and without budget data
experience, to better understand expenditures in these categories.
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding perFormance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
URL:http://bit.ly/fy22budgetsim
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high-priority
budget input questions, and leave comments.
Taxpayer Receipt
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.
FY 2024 Budget & Fiscal Policy Guidelines
Page 2
B. SERVICE OBJECTIVES AND SERVICE LEVELS
The budget will identify specific objectives to be accomplished during the budget year,
July 1 through June 30, for each activity of the City government. The objectives serve
as a commitment to the citizens from the City Council and City organization and
identify the level of service which the citizen can anticipate.
C. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED
Two types of budget documents will be prepared for public dissemination. The
recommended City operating budget for Fiscal Year 2024 will consist of a
Recommended City Council Policy Budget that is a collection of information that has
been prepared for department hearings and a Residents Guide to the Recommended
FY 2024 Budget. These documents will be available in mid-February.
1. Recommended City Council Policy Budget The purpose of this documents is
to focus attention on policy decisions involving what services the City government
will provide, who will pay for them, and the implications of such decisions. The
document will emphasize objectives, accomplishments and associated costs for
the budget being recommended by the City Manager.
The Recommended City Council Policy Budget will include the following
information for each department:
� Highlights of prior year's accomplishments and Future Year's Initiatives
� A financial summary
� A summary of improvement packages requested and recommended
� significant line items
� Capital improvement projects in the current year and those recommended
over the next five years
� Organizational chart for larger departments and major goals, objectives
and performance measures for each cost center within that department
� Line item expense and revenue financial summaries.
2. The Residents Guide This section of the Recommended FY 2024 Budget will
be a supplementary composite of tables, financial summaries and explanations. It
will include the operating and capital budget transmittal messages and the
adopted City Council Budget Policy Guidelines. Through graphs, charts and
tables it presents financial summaries which provide an overview of the total
operating and capital budgets. The FY 2024 Residents Guide will be an
abbreviated version due to time constraints and ongoing staffing shortages
FY 2024 Budget & Fiscal Policy Guidelines
Page 3
D. ADOPT A BALANCED BUDGET
The City will adopt a balanced budget in which expenditures will not be allowed to
exceed reasonable estimated resources. The City will pay for all current expenditures
with current revenues
E. BALANCE BETWEEN SERVICES AND TAX BURDEN
The budget should reflect a balance between services provided and the burden of
paying taxes and/or fees for those services. It is not possible or desirable for the City to
provide all the services requested by individual residents. The City must consider the
ability of residents to pay for services in setting service levels and priorities.
F. MAINTENANCE EXISTING LEVEL OF SERVICE
To the extent possible with the financial resources available, the City should attempt to
maintain the existing level of services. As often as reasonably possible, each service
should be tested against the following questions:
a. Is this service truly necessary?
b. Should the City provide it?
c. What level of service should be provided?
d. Is there a better, less costly way to provide it?
e. What is its priority compared to other services?
f. What is the level of demand for the service?
g. Should this service be supported by property tax, user fees, or a combination?
G. IMPROVE PRODUCTIVITY
Continue efforts to stretch the value of each tax dollar and maximize the level of City
services purchased with tax dollars through continual improvements in efficiency and
effectiveness. Developing innovative and imaginative approaches for old tasks, reducing
duplication of service effort, creative application of new technologies, and more effective
organizational arrangements are approaches to this challenge.
H. USE OF VOLUNTEERS
DISCUSSION
To respect residents who must pay taxes, the City must seek to expand resources and
supplement service-delivery capacity by continuing to increase direct resident
involvement with service delivery. Residents are encouraged to assume tasks
previously performed or provided by City government. This may require the City to
FY 2024 Budget & Fiscal Policy Guidelines
Page 4
change and expand the approach to service delivery by providing organizational skills
and training and coordinating staff, office space, meeting space, equipment, supplies
and materials rather than directly providing more expensive full-time City staff. Activities
in which residents can continue to take an active role include: Library, Recreation,
Parks, Five Flags Center, and Police.
Future maintenance of City service levels may depend partially or largely on volunteer
resident staffs. Efforts shall continue to identify and implement areas of City government
where (a) volunteers can be utilized to supplement City employees to maintain service
levels (i.e., Library, Recreation, Parks, Police) or (b) service delivery can be adopted by
to non-government groups and sponsors -- usually with some corresponding financial
support.
I. RESTRICTIONS ON INITIATING NEW SERVICE
New service shall only be considered: (a) when additional revenue or offsetting
reduction in expenditures is proposed; or (b) when mandated by state or federal law.
J. SALARY INCREASES OVER THE AMOUNT BUDGETED SHALL
BE FINANCED FROM BUDGET REDUCTIONS IN THE
DEPARTMENT(S) OF THE BENEFITING EMPLOYEES
DISCUSSION
The recommended budget includes salary amounts for all City employees. However,
experience shows that budgeted amounts are often exceeded by fact finder and/or
arbitrator awards. Such "neutrals" do not consider the overall financial capabilities and
needs of the community and the fact that the budget is carefully balanced and fragile.
Such awards have caused overdrawn budgets, deferral of necessary budgeted
expenditures, expenditure of working balances and reserves, and have generally
reduced the financial condition or health of the City government. To protect the financial
integrity of the City government, it is recommended the cost of any salary adjustment
over the amount financed in the budget is paid for by reductions in the budget of the
department(s) of the benefiting employees.
The City has five collective bargaining agreements. The current contracts expire as
follows:
. . . . .
Teamsters Local Union No. 120 June 30 2025
Teamsters Local Union No. 120 Bus O erators June 30 2025
Dubu ue Professional Firefi hters Association June 30 2024
Dubu ue Police Protective Association June 30 2024
International Union of O eratin En ineers June 30 2024
FY 2024 Budget & Fiscal Policy Guidelines
Page 5
Salary increases over the amount budgeted for salaries shall be financed from operating
budget reductions in the department(s) of the benefiting employees.
K. THE AFFORDABLE CARE ACT
The Affordable Care Act is a health care law that aims to improve the current health care
system by increasing access to health coverage for Americans and introducing new
protections for people who have health insurance. The Affordable Care Act (ACA) was
signed into law on March 23, 2010. Under the ACA, employers with more than 50 full-
time equivalent employees must provide affordable "minimum essential coverage" to
full-time equivalent employees. The definition of a full-time equivalent employee under
the Affordable Care Act is any employee that works 30 hours per week or more on
average over a twelve-month period (1,660 hours or more). There is a twelve-month
monitoring period for part-time employees. If a part-time employee meets or exceeds 30
hours per week on average during that twelve-month period, the City must provide
health insurance. On July 2, 2013, the Treasury Department announced that it
postponed the employer shared responsibility mandate for one year. Based on the initial
requirements of the Affordable Health Care Act, the Fiscal Year 2014 budget provided
for insurance coverage effective February 1, 2014 for several part-time employees. In
addition, the Fiscal Year 2014 budget provided for making several part- time positions
full-time on June 1, 2014. Due to the delay of the employer shared responsibility
mandate for the Affordable Health Care Act, the City delayed providing insurance
coverage for eligible part-time employees and delayed making eligible part- time
positions full-time until January 1, 2015.The Standard Measurement Period was delayed
from January 1, 2013 through December 31, 2013 to December 1, 2013 through
November 30, 2014 with the first provision of health insurance date being January 1,
2015.
The impact of the Affordable Care Act on the City of Dubuque included changing nine
part-time positions to full-time (Bus Operators (4), Police Clerk Typist (1), Building
Services Custodians (3), and Finance Cashier (1) in Fiscal Year 2016. In addition, nine
part-time positions were offered health insurance benefits due to working more
than1,560 hours (Bus Operators (4), Golf Professional, Assistant Golf Professional, Golf
Maintenance Worker, Parks Maintenance Worker , and Water Meter Service Worker).
The number of these part-time positions with health insurance benefits has been
reduced as employees in these positions accept other positions or leave employment
with the City of Dubuque. As of January 19, 2023, there is one part-time position with
health insurance benefits that remains which includes the Golf Professional.
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L. BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES
The provision of City services in the most economical and effective manner requires a
balance between capital (with emphasis upon replacement of equipment and capital
projects involving maintenance and reconstruction) and operating expenditures. This
balance should be reflected in the budget each year.
M. USER CHARGES
User charges or fees represent a significant portion of the income generated to support
the operating budget. It is the policy that user charges or fees be established when
possible so those who benefit from a service or activity also help pay for it. Municipal
utility funds have been established for certain activities, which are intended to be self-
supporting Enterprise Funds. Examples of utility funds operating as Enterprise Funds
include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection
Fund, and Parking Fund. In other cases, a user charge is established after the City
Council determines the extent to which an activity must be self-supporting. Examples of
this arrangement are fees for swimming, golf, recreation programs, and certain
inspection programs such as rental inspections and building permits.
The Stormwater User Fund is fully funded by stormwater use fees. The General Fund
will continue to provide funding for the stormwater fee subsidies which provide a 50%
subsidy for the stormwater fee charged to property tax exempt properties and low-to-
moderate income residents and a 75% subsidy for residential farms. The General Fund
will also continue to provide funding for the refuse, water, and sanitary sewer fee
subsidies which provide a 50% subsidy for the fees charged to low-to-moderate income
residents.
User fees and charges should be established where possible so that those who utilize
or directly benefit from a service, activity or facility also help pay for it.
User fees and charges for each utility enterprise fund (Water User Fund, Sewer User
Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set
at a level that fully supports the total direct and indirect cost of the activity, including the
cost of annual depreciation of capital assets, the administrative overhead to support the
system and financing for future capital improvement projects.
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-- ... .
Activity FY 2021 Actual FY 2022 Actual FY 2023 Adopted FY 2024 Rec'd
Adult Athletics 56.3% 68.8% 50.8% 53.3%
McAleece Concessions 130.1% 65.6% 127.6% 116.4%
Youth Sports 14.1% 20.2% 20.0°/a 15.2%
Therapeutic&After School 83.8% 76.0% 30.4o�o 22 2%
Recreation Classes 66.5% 76.8% 42.8% 50.1%
Swimming 47.8% 36.9% 49.4% 41.5%
Golf 109.0% 112.5% 100.3% 100.6%
Port of Dubuque Marina 80.6% 89.4% 63.3% 65.4%
Park Division 25.8% 18.9% 15.2°/o 15.7%
Library 1.8% 1.4% 1.3% 1.3%
Airport 103.4% 101.1% 91.3% 93.7%
Building Inspections 157.7°/a 144.7% 94.3°/a 99.3%
Planning Services 63.4% 53.7% 45.2% 58.4%
Health Food/Environmental 73.8% 71.8°/o 52.0°/o 47.8°/o
Inspections
Animal Control 70.6% 69.8% 66.7% 56.7%
Housing - General Inspection 110.6% 71.0% 101.6% 93.7%
Federal Building Maintenance 92.6% 70.5% 69.2°/o 58.9%
N. ADMINISTRATIVE OVERHEAD RECHARGES
DISCUSSION
While the Enterprise Funds have contributed to administrative overhead, the majority
has been provided by the General Fund. This is not reasonable and unduly impacts
property taxes, which causes a subsidy to the Enterprise Funds. Prior to FY 2013, the
administrative overhead was charged by computing the operating expense budget for
each enterprise fund and dividing the result by the total City-wide operating expense
budget which resulted in the following percentages of administrative overhead charged
to each enterprise fund: Water 5.32%; Sanitary Sewer 4.84%; Stormwater 0.55%; Solid
Waste 2.83%; Parking 1.71%; and Landfill 2.71%. The adopted Fiscal Year 2013 budget
changed the administrative overhead to be more evenly split between the general fund
and enterprise funds and is phased in over many years.
The Fiscal Year 2018 administrative overhead formula was recommended modified. The
modification removed Neighborhood Development, Economic Development and
Workforce Development from all recharges to utility funds. In addition, the Landfill
calculation is modified to remove GIS and Planning.
In Fiscal Year 2024, the general fund is recommended to support $6,840,376 in
administrative overhead using the recharge method adopted in Fiscal Year 2013 and
revised in Fiscal Year 2018.
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Beginning in FY 2013, additional overhead recharges to the utility funds is being phased
in over several years. Engineering administrative and project management expenses
that are not recharged to capital projects will be split evenly between the Water, Sewer,
Stormwater and General Funds. Finance accounting expenses and all other
administrative departments such as Planning, City Clerk, Legal Services and City
Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse
Collection and General Funds, with overhead costs being shared by the Landfill and
Parking. This will be fully implemented over time.
Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development
and Workforce Development expenses will not be recharged to utility funds. In addition,
the Landfill will not be recharged GIS and Planning expenses.
When the overhead recharges are fully implemented, the split of the cost of
administrative overhead excluding Engineering will be as follows:
Administrative �verhead �plit Engineering Administration 8�
(Not including Engineering) �rOJ@Gt�pMp���71�Mt
■4�+ate• ■General
■�ewe• Fund
� '�. . _�
�tcrrr•4�,•vitv• ', - -
� �RE-U=E _-..-
��C7 F�CIFI�
_vind=i �I ■�tcrrrwater
� � ��:aneralFunJ
�
FY 2024 Budget & Fiscal Policy Guidelines
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The implementation percent of the administrative overhead recharges in Fiscal Year
2023 as compared to Fiscal Year 2024 is as follows:
Percent Implemented Administrative Overhead
100% 100% 100% 100% 100%
100% 93%
75% 67%
57%
50%
9% 30% 6%
25% � 16%
-% •
FY24 FY23
Sanitary Sewer Stormwater � Water
� Refuse � Parking Landfill
O. OUTSIDE FUNDING
DISCUSSION
The purpose of this guideline is to establish the policy that the City should aggressively
pursue outside funding to assist in financing its operating and capital budgets.
However, the long-term commitments required for such funding must be carefully
evaluated before any agreements are made. Commitments to assume an ongoing
increased level of service or level of funding once the outside funding ends must be
minimized.
To minimize the property tax burden, the City of Dubuque will make every effort to
obtain federal, state and private funding to assist in financing its operating and capital
budgets. However, commitments to guarantee a level of service or level of funding after
the outside funding ends shall be minimized. Also, any matching funds required for
capital grants will be identified.
P. GENERAL FUND OPERATING RESERVE (WORKING BALANCE)
DISCUSSION
An operating reserve or working balance is an amount of cash, which must be carried
into a fiscal year to pay operating costs until tax money, or other anticipated revenue
comes in. Without a working balance, there would not be sufficient cash in the fund to
meet its obligations and money would have to be borrowed. Working balances are not
FY 2024 Budget & Fiscal Policy Guidelines
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available for funding a budget; they are required for cash flow (i.e., to be able to pay bills
before taxes are collected).
Moody's Investor Service recommends a factor of 20 percent for "AA" rated cities. In
May 2021, Moody's Investor Services upgraded the City's Water Enterprise's
outstanding revenue bonds from A1 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.
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.
In November of 2022, Moody's Investors Service ("Moodys") released a new
rating methodology for cities and counties. Two significant changes result from
the new methodology; cities are now assigned an issuer rating meant to convey
the creditworthiness of the issuer as a whole without regard to a specific
borrowing, and business-type enterprise funds are now being considered
together with general fund revenues and balances in the determination of
financial performance.
Coincident with the release of its methodology, Moody's reviewed the City of
Dubuque. The City was assigned an issuer rating of Aa3, which is equivalent to
the existing rating on its general obligation bonds. At that time, the rating agency
did not take any additional action on the City's bond rating, nor did it indicate a
need for further review.
Under the new methodology, there are two metrics that contribute to financial
performance. Available Fund Balance Ratio ("AFBR") _ (Available Fund Balance +
Net Current Assets/Revenue) and Liquidity Ratio ("LR") _ (Unrestricted Cash/
Revenue). For Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in
connection to its annual issuance of bonds. At that time, Moody's calculated the
City's AFBR to be 45.2°/a, and its LR to be 59.8%. The balances used in these
calculations were likely elevated due to unspent ARPA funds. The change in
methodology will now consider revenues and net assets from business-type
activities in these calculations. As such, the City's general obligation rating will
now be directly impacted by the financial performance of enterprise funds.
Establishing rates and charges adequate to provide both debt service coverage
and significant liquidity will be necessary to maintain the City's ratings.
FY 2024 Budget & Fiscal Policy Guidelines
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. -
. . . . . . . - . . .
. .
FY 2014 14.87%
FY 2015 14.87% Unchanged
Increase due to capital projects not expended before the
FY 2016 17.52% end of the FY and increase in general fund revenue
Increase due to capital projects not expended before the
end of the FY and additional contributions to general
FY 2017 20.09% fund reserve
Increase due to capital projects not expended before the
end of the FY and additional contributions to general
FY 2018 23.81% fund reserve
Increase due to capital projects not expended before the
FY 2019 29.06% end of the FY.
Increase due to freezing vacant positions and most
FY 2020 31.24% capital projects due to the pandemic.
Increase due to American Rescue Plan Act funds
received ($13.2 million), frozen positions and capital
FY 2021 40.72% projects through Feb 2021.
Increase due to American Rescue Plan Act funds
received ($13.2 million), capital projects not expended
FY 2022 49.16% 45.09 % before the end of the FY, and vacant positions.
The City of Dubuque has historically adopted a general fund reserve policy as part of
the Fiscal and Budget Policy Guidelines which are adopted each year as part of the
budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve
Policy. Per the policy for the General Fund, the City will maintain a minimum fund
balance of at least 20 percent of the sum of (a) annual operating expenditures not
including interfund transfers in the General Fund less (b) the amounts levied in the Trust
and Agency fund and the Tort Liability Fund ("Net General Fund Operating Cost"). The
City may increase the minimum fund balance by a portion of any operating surplus
above the carryover balance of$200,000 that remains in the General Fund at the close
of each fiscal year. The City continued to add to the General Fund minimum balance
when additional funds were available until 20 percent of Net General Fund Operating
Cost was reached in Fiscal Year 2017.
After all planned expenditures in FY 2023, the City of Dubuque will have a general fund
reserve of 50.18% of general fund revenues as a percent of general fund revenues
computed by the accrual basis or 45.25% of general fund, debt service, and enterprise
fund revenues as computed by the accrual basis methodology now used by Moody's
Investors Service. The general fund reserve cash balance is projected to be
$37,014,317 on June 30, 2023 as compared to the general fund reserve balance on an
accrual basis of$35,459,518. The general fund reserve balance on an accrual basis
exceeds 22% in FY 2023, 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.
FY 2024 Budget & Fiscal Policy Guidelines
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The guideline of the City of Dubuque is to maintain a General Fund working balance or
operating reserve of 20% (22% to maintain a margin of error of 2%) in FY 2023 and
beyond. In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2023. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has sustained a
greater than 20°/a reserve.
C�PnPral Func� RPSPrVe PrOjeCtlOnS:
. - . . . . . . .
. . - . . . . . .
FY2017 $600,000 $14,172,661 20.09 %
FY2018 $1,700,000 $16,460,491 23.81 %
FY2019 $1,050,000 $20,945,090 29.06 %
FY2020 $ $21,744,160 31.24 %
FY2021 $ $31,089,468 40.72 %
FY2022 $ $41,259,518 49.16 % 45.09 %
FY2023 $ $35,459,518 50.18 % 45.25 %
FY2024 $ $29,659,518 41.97 % 40.21 %
FY2025 $ $23,859,518 33.76 % 35.17 %
FY2026 $ $18,059,518 25.56 % 30.14 %
FY2027 $ $18,059,518 25.56 % 30.14 %
FY2028 $ $18,059,518 25.56 % 30.14 %
* Capital projects and large equipment purchases that are not completed in the
year budgeted will temporarily increase the amount of fund balance remaining at the
end of the fiscal year. After resources are allocated to the next fiscal year to complete
unfinished capital projects and equipment purchases, any amount of general fund
reserve balance over 22% creates resources for additional capital projects or
other mid-year expenses.
Q. USE OF UNANTICIPATED, UNOBLIGATED, NONRECURRING
INCOME
DISCUSSION
Occasionally, the City receives income that was not anticipated and was not budgeted.
Often, this money is non-recurring and reflects a one-time occurrence which generated
the unanticipated increase in income.
Non-recurring income generally will not be spent on recurring expenses. This would
result in a funding shortfall in the following budget year before even starting budget
preparation. However, eligible non-recurring expenditures would include capital
improvements and equipment purchases.
FY 2024 Budget & Fiscal Policy Guidelines
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Nonrecurring unobligated income shall generally only be spent for nonrecurring
expenses. Capital improvement projects and major equipment purchases tend to be
nonrecurring expenditures.
R. USE OF "UNENCUMBERED FUND BALANCES"
DISCUSSION
Historically, 100% of a budget is not spent by the end of the fiscal year and a small
unencumbered balance remains on June 30th. In addition, income sometimes exceeds
revenue estimates or there are cost savings resulting in some unanticipated balances at
the end of the year. These amounts of unobligated, year-end balances are "carried
over" into the new fiscal year to help finance it.
The FY 2023 General Fund budget, which went into effect July 1, 2022, anticipated a
"carryover balance" of $200,000 or approximately 2 percent of the General Fund. For
multi-year budget planning purposes, these guidelines assume a carryover balance of
$200,000 in FY 2024 through FY 2028.
Carryover General Fund balance shall generally be used to help finance the next fiscal
year budget and reduce the demand for increased taxation. The available carryover
General Fund balance shall be anticipated not to exceed $200,000 for FY 2023 and
beyond through the budget planning period. Any amount over that shall usually be
programmed in the next budget cycle as part of the capital improvement budgeting
process.
T. PROPERTY TAX DISCUSSION
' " ""'1MF'�"'\"' =SOURCES
1. Local, Federal and State Resources
a. Cash Balance. Unencumbered funds or cash balances of $200,000 will be available
in FY 2024 and each succeeding year to support the operating budget.
b. Interest Revenue. Interest revenue increased from $461,015 in FY 2023 to
$1,500,016 in FY 2024. The FY 2024 budget is based on current general fund cash
balance and an interest rate of 4.00%.
b. Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the
General Fund for property tax relief in FY 2024. Sales tax receipts are projected to
decrease 3.67% ($477,972) under FY 2023 budget and 2.98% over FY 2023 actual of
$12,166,014 based on FY 2023 revised revenue estimate which includes a
reconciliation payment from the State of lowa of$742,777 received in November 2022,
and then increase at an annual rate of 2.00% percent per year beginning in FY 2025.
FY 2024 Budget & Fiscal Policy Guidelines
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The following chart shows the past four years of actual sales tax funds and projected FY
2024 for the General Fund:
. � � � � � -
PY Q4 $ 355,027 $ 380,549 $ 419,551 $ 475,037 $ 508,289
Quarter 1 $ 1,124,105 $ 1,252,896 $ 1,361,526 $ 1,177,196 $ 1,259,600
Quarter 2 $ 1,149,881 $ 1,274,904 $ 1,425,968 $ 1,613,587 $ 1,726,538
Quarter 3 $ 971,871 $ 1,072,643 $ 1,211,388 $ 1,370,747 $ 1,466,700
Quarter4 $ 700,312 $ 839,102 $ 950,069 $ 1,075,051 $ 1,150,305
Reconciliation $ 219,332 $ 805,052 $ 945,466 $ 371,388 $ 152,971
Total $ 4,520,528 $ 5,625,146 $ 6,313,968 $ 6,083,006 $ 6,264,403
% Change +0.87% +19.64% +12.25% -3.66% +2.98%
c. Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 3.00%
($85,223.00) over FY 2023 budget and 3.00% over FY 2023 re-estimated receipts of
$2,840,773, and then increase at an annual rate of 3.00% per year.
d. FTA Revenue. Federal Transportation Administration (FTA) transit operating
assistance increased from $562,033 in FY 2023 to $570,300 in FY 2024. The FY 2024
budget is based on the revised FY 2023 budget received from the FTA. Federal
operating assistance is based on a comparison of larger cities. Previously the allocation
was based on population and population density.
e. Ambulance Revenue. Ambulance Ground Emergency Medical Transport Payments
increased from $1,174,894 in FY 2023 to $2,324,377 in FY 2024. GEMT is a federally-
funded supplement to state Medicaid payments to EMS providers transporting Medicaid
patients which began in FY 2022. Fiscal Year 2023 was based on a four year average of
Medicaid transports and Fiscal Year 2024 is based on the first four months of Fiscal
Year2023 Medicaid transports annualized (1,311) increased by 11% (1,455). The actual
rate of reimbursement from Medicaid increased from $1,579.13 in FY 2023 to $1,597.51
in FY 2024 based on the cost report filed. This line item is offset by GEMT Pay to Other
Agency expense for local match of$438,000 resulting in net revenue of$1,886,377.
Ambulance Fees increased from $1,379,294 in FY 2023 ($332 per call) to $1,917,275 in
FY 2024 ($345 per call). FY 2022 actual was 1,894,062. In FY 2024, it is currently
estimated that there will be 5,557 calls with $345 per call average. Fiscal Year 2024 is
based on Fiscal Year 2023 actual transport volume for the first four months annualized
(5,160) increased by 7.7% five-year average growth rate (5,557).
f. Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth
per year over budgeted FY 2023.
g. Building Fee Revenue. Building fees (Building Permits, Electrical Permits,
Mechanical Permits and Plumbing Permits) are anticipated to increase $61,535 from
$745,335 in FY 2023 to $806,870 in FY 2024.
FY 2024 Budget & Fiscal Policy Guidelines
Page 15
h. DRA Revenue.
Gaming revenues generated from lease payments from the Dubuque Racing
Association (DRA) are estimated to decrease $429,640 from $7,512,677 in FY 2023 to
$7,083,037 in FY 2024 based on revised projections from the DRA. This follows a
$2,283,319 increase from budget in FY 2023 and a $43,621 increase from budget in FY
2022.
The following is a ten-year history of DRA lease payments to the City of Dubuque:
. . .
FY 2024 Projected $7,083,037 -$7,275 0%
FY 2023 Revised $7,090,312 -$422,365 -6%
FY 2023 Budget $7,512,677 $905,146 14%
FY 2022 Actual $6,607,531 $1,534,718 30%
FY 2021 Actual $5,072,813 $1,110,817 28%
FY2020Actual $3,961,996 -$1,187,192 -23%
FY 2019 Actual $5,149,188 $293,177 6%
FY 2018 Actual $4,856,011 $18,879 0%
FY 2017 Actual $4,837,132 -$195,083 -4%
FY 2016 Actual $5,032,215 -$155,297 -3%
FY 2015 Actual $5,187,512 -$158,104 -3%
FY 2014 Actual $5,345,616 -$655,577 -11%
FY 2013 Actual $6,001,193 -$819,090 -12%
The Diamond Jo payment related to the revised parking agreement increased from
$597,905 in FY 2023 to $624,377 in 2024 based on estimated Consumer Price Index
adjustment.
i. DRA Gaming.
The split of gaming revenues from taxes and the DRA lease (not distributions) in FY
2024 remains at a split of 100% operating and 0°/o capital. When practical in future
years, additional revenues will be moved to the capital budget from the operating
budget.
FY 2024 Budget & Fiscal Policy Guidelines
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The following shows the annual split of gaming taxes and rents between operating and
capital budgets from FY2019— FY2024:
Split of Gaming Tax + Revenue Between Operating & Capital Budgets
FY 2019 96%
FY 2020 95% 4%
FY 2021 100% � '
FY 2022 100% �'
FY 2023 100% � '
FY 2024 100% 0%
—% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%
Operating ■ Capital
j. Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2024) and the
Diamond Jo parking privileges ($624,377 in FY 2024) have not been included in the split
with gaming revenues. This revenue is allocated to the operating budget.
2. Property Taxes
k. Residential Rollback. The residential rollback factor will increase from 54.1302% in
2023 to 54.6501% or a 0.96% increase in FY 2024. The rollback has been estimated to
remain the same from Fiscal Years 2025 through 2028.
The percent of growth from revaluation is to be the same for agricultural and residential
property; therefore, if one of these classes has less than 3% growth for a year, the other
class is limited to the same percent of growth. A balance is maintained between the two
classes by ensuring that they increase from revaluation at the same rate. In FY 2024,
agricultural property had more growth than residential property which caused the
rollback factor to increase.
The increase in the residential rollback factor increases the value that each residence is
taxed on. This increased taxable value for the average homeowner ($86,339 taxable
value in FY 2023 and $87,169 taxable value in 2024) results in more taxes to be paid
per $1,000 of assessed value. In an effort to keep property taxes low to the average
homeowner, the City calculates the property tax impact to the average residential
FY 2024 Budget & Fiscal Policy Guidelines
Page 17
property based on the residential rollback factor and property tax rate. In a year that the
residential rollback factor increases, the City recommends a lower property tax rate than
what would be recommended had the rollback factor remained the same.
The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to
54.6501 percent in Fiscal Year 2024. The rollback percent had steadily decreased since
FY 1987, which has resulted in less taxable value and an increase in the City's tax rate.
However, that trend began reversing in FY 2009 when the rollback reached a low of
44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2023, the City's
tax rate would have been $6.84 per $1,000 of assessed value instead of$9.72 in FY
2023.
I. State Equalization Order/Property Tax Reform. There was not an equalization
order for commercial, industrial or multi-residential property in Fiscal Year 2024. The
lowa Department of Revenue is responsible for "equalizing" assessments every two
years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide
basis.
Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed
value; however due to legislative changes in FY 2013, a 95% rollback factor was
applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond.
The State of lowa backfilled the loss in property tax revenue from the rollback 100% in
FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018
and beyond. The FY 2024 State backfill for property tax loss is estimated to be
$969,905 for all funds (General Fund, Tort Liability Fund, Trust and Agency Fund,
Debt Service Fund, and Tax Increment Financing Funds).
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 eight year period.
FY 2024 Budget & Fiscal Policy Guidelines
Page 18
The projected reduction of State backfill revenue to only the general fund is as follows:
. .
2024 -$113,840
2025 -$113,840
2026 -$113,840
2027 -$113,840
2028 -$113,840
2030 -$113,840
Total -$683,040
Business Property Tax Credit Law Changes and Implementation of Two-Tier
Assessment Limitations
From FY 2015 through FY 2023, commercial, industrial and railroad properties were
eligible for a Business Property Tax Credit. The Business Property Tax Credit was
deducted from the property taxes owed and the credit was funded by the State of lowa.
The average commercial and industrial properties ($432,475 Commercial / $599,500
Industrial) received a Business Property Tax Credit from the State of lowa for the City
share of their property taxes of$148 in FY 2015, $693 in FY 2016, $982 in FY 2017,
$959 in FY 2018, $843 in FY 2019, $861 in FY 2020, $779 in FY 2021, $780 in FY
2022, and $722 in FY 2023.
House File 2552, Division 11 passed in the 2022 legislative session and signed by the
Governor on May 2, 2022 repeals the Business Property Tax Credit (BPTC). In lieu of
the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad
properties will receive a property assessment limitation on the first $150,000 of value of
the property unit equal to the assessment limitation for residential property. The value of
the property unit that exceeds $150,000 receives the same ninety percent assessment
limitation it has in the past.
The $125 million fund will continue to be appropriated each year for reimbursements to
counties. County auditors will file a claim for the first tier of the assessment limitations in
September. Assessors will continue to provide the unit configuration for auditors as
these definitions remained the same. Taxpayers are not required to file an application to
receive the first $150,000 of assessed value at the residential assessment limitation
rate.
If the total for all claims is more than the appropriated amounts, the claims will be
prorated and the lowa Department of Revenue will notify the county auditors of prorated
percentage by September 30`h. Lawmakers believe the new standing general fund will
exceed the projected level of claims for fiscal years 2024 through 2029. Then in fiscal
year 2030, the local government reimbursement claims will begin being prorated.
The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal
Year 2024 is estimated to be $619,735.
FY 2024 Budget & Fiscal Policy Guidelines
Page 19
m. Multi-Residential Property Class/Eliminated State Shared Revenue.
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi-residential, which requires a rollback, or
assessment limitations order, on multi-residential property which will eventually equal
the residential rollback. Multi-residential property includes apartments with 3 or more
units. Rental properties of 2 units were already classified as residential property.
The State of lowa will not backfill property tax loss from the rollback on multi-residential
property. The rollback will occur as follows:
- . . . � , • . .
FY 2017 86.25% $331,239
FY 2018 82.50% $472,127
FY 2019 78.75% $576,503
FY 2020 75.00% $691,640
FY 2021 71.25% $952,888
FY 2022 67.50% $752,366
FY 2023 63.75% $662,821
FY 2024 54.65% $1,186,077
Total $5 625 661
*54.65% = Current residential rollback
This annual loss in tax revenue of $1,186,077 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 $5,625,661 in total, meaning
landlords will have paid that much less in property taxes. The state did not require
landlords to charge lower rents or to make additional investment in their property.
In Fiscal Year 2024, the multi-residential property class was eliminated and is
reported with the residential property class.
lowa Legislative Change to Fiscal Year 2024 Residential Rollback Calculation
At the time residential rollback was calculated by the lowa Department of Revenue for
Fiscal Year 2024, the multi-residential property class values were not excluded from the
calculation. House File 418, which combined the residential and multi-residential
property classes, intended to have the residential rollback calculated separately without
the inclusion of multi-residential property, and then assign that calculated residential
rollback to all properties classified as multi-residential.
Due to the multi-residential property tax not being excluded at the time the residential
rollback was calculated, the residential rollback was computed as 56.4919%. The State
Legislature has indicated that they will pass a bill that will correct this error which will
FY 2024 Budget & Fiscal Policy Guidelines
Page 20
result in excluding multi-residential property from the residential rollback calculation and
a rollback calculation of 54.6501%.
The reduction in residential rollback from 56.4919% to 54.6501% results in a tax
revenue loss of$627,641 in FY24.
State Shared Revenue Eliminations
In addition, the State of lowa eliminated the:
a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000)
b. Personal Property Tax Replacement in FY 2004 (-$350,000)
c. Municipal Assistance in FY 2004 (-$300,000)
d. Liquor Sales Revenue in FY 2004 (-$250,000)
e. Bank Franchise Tax in FY 2005 (-$145,000)
f. Alcohol License Revenue in FY 2023 (-$85,000)
The combination of the decreased residential rollback, State funding cuts and increased
expenses has forced the City's tax rate to increase since 1987 when the residents
passed a referendum to establish a one percent local option sales tax with 50% of the
revenue going to property tax relief.
n. Taxable Value. FY 2024 will reflect the following impacts of taxable values of various
property types:
. . - . - . - . .
Residential Includes Multi-Residential +8.74 %
Commercial 5.01 %
Industrial +3.11 %
Multi-Residential Re orted with Residential 100.00 %
Overall 0.48 %
*Overall taxable value increased (0.48)% percent after deducting Tax Increment
Financing values
Assessed valuations were increased 2 percent per year beyond FY 2024.
o. Riverfront Property Lease Revenue. Riverfront property lease revenue is projected
to increase by $80,577 in FY 2024 to $3,897,839 due to the estimated consumer price
index increase.
3. Fees, Tax Rates & Services
p. Franchise Fees. Natural Gas franchise fees have been projected to increase zero
percent over FY 2022 actual of$1,757,326. Also, Electric franchise fees are based on
FY 2022 Actual of$4,140,518. The franchise fee revenues are projected to increase at
an annual rate of 4 percent per year from FY 2025 through FY 2028.
FY 2024 Budget & Fiscal Policy Guidelines
Page 21
The City provides franchise fee rebates to gas and electric customers who are exempt
from State of lowa sales tax. Franchise fee rebates are provided at the same exemption
percent as the State of lowa sales tax exemption indicated on the individual gas and or
electric bill. To receive a franchise fee rebate, a rebate request form must be completed
by the customer, the gas and/or electric bill must be attached, and requests for rebates
for franchise fees must be submitted during the fiscal year in which the franchise fees
were paid except for June. Natural Gas franchise fee rebates have been projected to
increase 47% over 2023 budget of $53,263 and Electric franchise fee rebates have
been projected to decrease 7.35% under 2023 budget of$628,000.
The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal
maximum, on June 1, 2015.
q. Property Tax Rate. For purposes of budget projections only, it is assumed that City
property taxes will continue to increase at a rate necessary to meet additional
requirements over resources beyond FY 2024.
r. Police & Fire Protection. FY 2024 reflects the twelfth year that payment in lieu of
taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection.
In FY 2024, the Sanitary Sewer fund is charged 0.43% of building value and the Water
fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire
Protection. This revenue is reflected in the General Fund and is used for general
property tax relief.
... _ .3SUMPTIONS — REQUIREMENTS
a. Pension Systems.
• The Municipal Fire and Police Retirement System of lowa (MFPRSI) Board of
Trustees City contribution for Police and Fire retirement decreased from 23.90%
percent in FY 2023 to 22.98% percent in FY 2024 (general fund savings of
$19,303 for Police and $74,660 for Fire or a total of$55,356).
• The lowa Public Employee Retirement System (IPERS) City contribution is
unchanged from the FY 2023 contribution rate of 9.44% (no general fund impact).
The IPERS employee contribution is unchanged from the FY 2023 contribution
rate of 6.29% (which does not affect the City's portion of the budget). The IPERS
rate is anticipated to increase 1 percent each succeeding year.
b. Collective Bargaining. The already approved collective bargaining agreements for
Dubuque Police Protective Association, Teamsters Local Union No. 120 Bus Operators,
and Teamsters Local Union No. 120 in FY 2024 include a 3.00% employee wage
increase, however a 5.00% wage increase is recommended for all collective bargaining
agreements except the Dubuque Police Protective Association and Dubuque
Professional Fire Fighters Association, which a 6.00% wage increase is recommended.
In addition, the Dispatchers that are part of the International Union of Operating
Engineers include a 6.00% wage increase. Non-represented employees include a
5.00% wage increase, with the exception of Police and Fire command staff excluding
FY 2024 Budget & Fiscal Policy Guidelines
Page 22
the Police and Fire Chief include a 6.00% wage increase, and the Lead Dispatchers
include a 6.00% wage increase. Total cost of the wage increase is $1,230,187 to the
General Fund.
c. Health Insurance. The City portion of health insurance expense is projected to
remain unchanged from $1,119 per month per contract to $1,119 per month per contract
(based on 637 contracts) in FY 2024 (no general fund impact). 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 and Fiscal Year 2022 included additional prescription drug plan
savings.There was a decrease of$639,758 in prescription drug cost in FY 2022. Based
on FY 2023 actual experience, Fiscal Year 2024 is projected to have a 5.27% increase
in health insurance costs. Estimates for FY 2025 were increased 5.27%; FY 2025 were
increased 5.27%; FY 2026 were increased 5.27%; and FY 2027 were increased 5.27%.
d. Five-Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible
retirees with at least twenty years of continuous service in a full-time position or
employees who retired as a result of a disability and are eligible for pension payments
from the pension system can receive payment of their sick leave balance with a
maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick
leave payout expense budget in the General Fund in FY 2023 was $246,947 as
compared to FY 2024 of $290,242, based on qualifying employees officially giving
notice of retirement.
e. 50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap
can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick
leave payout expense budget in the General Fund in FY 2023 was $124,693 as
compared to FY 2024 of $119,167, based on FY 2023 year-to-date expense.
f. Parental Leave. Effective March 8, 2019, employees may use Parental leave to take
paid time away from work for the birth or the adoption of a child under 18 years old.
Eligible employees receive their regular base pay (plus longevity) and benefits for
twelve weeks following the date of birth, adoption event or foster-to-adopt placement. If
both parents are eligible employees, each receive the leave benefit. There is no
parental leave expense budgeted in the General Fund based on departments covering
parental leave with existing employees and not incurring additional cost for temporary
help.
f. Supplies & Services. General operating supplies and services are estimated to
increase 2% over actual in FY 2022. A 2% increase is estimated in succeeding years.
FY 2024 Budget & Fiscal Policy Guidelines
Page 23
g. Electricity. Electrical energy expense is estimated to have no increase over FY 2022
actual expense, then 2% per year beyond.
h. Natural Gas. Natural gas expense is estimated to have no increase over FY 2022
actual then 2% per year beyond.
i. Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will
continue at 50% of actual hotel/motel tax receipts.
j. Equipment & Machinery. Equipment costs for FY 2024 are estimated to decrease
22.46% under FY 2023 budget, then remain constant per year beyond.
k. Debt Service. Debt service is estimated based on the tax-supported, unabated
General Obligation bond sale for fire truck and franchise fee litigation settlement.
I. Unemployment. Unemployment expense in the General Fund decreased from
$43,846 in FY 2023 to $27,653 in FY 2024 based on estimated premium for FY23.
m. Motor Vehicle Fuel. Motor vehicle fuel is estimated to increase 5.14% over the FY
2023 budget, then increase 2.0% per year beyond.
n. Motor Vehicle Maintenance. Motor vehicle maintenance is estimated to increase
9% from the FY 2023 budget based onFY22 actual, then increase 2.0% per year and
beyond.
o. Public Transit. The decrease in property tax support for Transit from FY 2023 to FY
2024 is $126,874, which reflects an increase in Federal Transportation Administration
Operating revenue ($8,267); an increase in Federal Transportation Administration
Capital ($233,133), an increase in employee expense ($211,973); increase in supplies
and services ($90,303); a reduction in equipment replacements ($24,245), an increase
in passenger fare revenue ($6,770).
p. Public Transit (continued):
The following is a ten-year history of the Transit subsidy:
FY 2024 Budget & Fiscal Policy Guidelines
Page 24
� . � , . -
2024 Pro'ection $1,579,811 5.62 %
2023 Bud et $1,673,923 4.54 %
2022Actual $1,601,290 2.09 %
2021 Actual $1,635,441 4.94 %
2020 Actual $1,558,460 0.82 %
2019 Actual $1,571,307 0.10 %
2018 Actual $1,572,825 34.10 %
2017 Actual $1,172,885 24.41 %
2016 Actual $942,752 13.20 %
2015Actual $1,086,080 30.33 %
2014 Actual $833,302 20.19 %
: 2013 Actual $1,044,171 45.51 %
q. Shipping & Postage. Postage rates for FY 2024 are estimated to increase 2% over
FY 2022 actual expense and proposed cost increases by United States Postal Service.
A 2.0 percent increase is estimated in succeeding years.
r. Insurance. Insurance costs are estimated to change as follows:
• Workers Compensation is decreasing (11)% based on rate change.
• General Liability is increasing based on FY 2024 actual plus 2%.
• Damage claims is increasing 16% based on a five year average.
• Property insurance is increasing based on FY 2024 actual plus 2%.
s. Housing. The Housing Choice Voucher subsidy payment from the General Fund is
estimated to increase $69,393 in FY 2024. The City of Dubuque is authorized to use up
to 1,108 vouchers; however, the annual budget provided by the U.S. Department of
Housing and Urban Development (HUD) only supports approximately 900 vouchers.
The city is utilizing 760 vouchers as of October 2022. HUD has based the Section 8
administrative fees for FY 2024 on the number of vouchers held in FY 2023 which has
increased the amount of administrative revenue received by the Section 8 program in
FY 2024, however administrative expenses also increased.
t. Media Services Fund. The Media Services Fund no longer funds Police and Fire
public education, Information Services, Health Services, Building Services, Legal
Services, and City Manager's Office due to reduced revenues from the cable franchise.
This is due to Mediacom's conversion from a Dubuque franchise to a state franchise in
October 2009 which changed the timing and calculation of the franchise fee payments.
Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and
Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is
expended, the City will be responsible for all City Media Service equipment replacement
costs. Other jurisdictions will need to plan accordingly.
FY 2024 Budget & Fiscal Policy Guidelines
Page 25
u. Greater Dubuque Development Corporation. Greater Dubuque Development
Corporation support of$836,135 is budgeted to be paid mostly from Dubuque Industrial
Center Land Sales in FY 2024, with $26,500 for True North strategy paid from the
Greater powntown TIF. In FY 2025 and beyond Greater Dubuque Development
Corporation will be paid from the Greater powntown TIF and Dubuque Industrial Center
West land sales.
FY 2024 Budget & Fiscal Policy Guidelines
Page 26
PROPERTY TAX IMPACT
The recommended Fiscal Year 2024 property tax rate increased 1.96% and will have the
following impact:
� - � � , . .
Pro ert Tax Rate $9.90755 $9.71686 1.96% $0.19
Avera e Residential Pa ment $815.57 $791.82 3.00% $23.75
Avera e Commercial Pa ment $3,330.95 $3,060.34 8.84% $270.61
Avera e Industrial Pro ert $4,820.27 $4,521.00 6.62% $299.27
Historical Impact on Tax Askings and Average Residential Property Tax Rates
The following is a historical City tax rate comparison. The average percent change in tax
rate from 1987-2024 is -0.97%. The average annual change over the last five years is
-1.31%.
The following pages show historical and projected property tax impacts.
FY 2024 Budget & Fiscal Policy Guidelines
Page 27
Historical Impacts on Tax Askings & Average Residential Property Tax Rates:
Historical Impact on Tax Askings & Average Residential Property Tax Rates
� % Change in Tax Rate City Tax Rate
6.00% $16.00
3.00% $14.00
i �
—°io $�2.00
(3.00)% $10.00
(6.00)% $8.00
(9.00)% $6.00
(12.00)% $4.00
(15.00)% $2.00
(18.00)% $—
f� 00 6� O � N M � �Gfl f� 00 6� O � N M � �(fl f� 00 6� O � N M � Ln(O f� op 6� O � N M �
00 00 00 O� � � � �6�O)6)6) 6� O O O O O O O O O O � � � � � � f � � � N N N N N
6�6� 6� � � � � �d)�6)6� � O O O O O O O O O O O � O O O O O O O O O O O O O
� � � � � � ��� � � � � N N N N N N N N N N N N N N N N N N N N N N N N N
� � � � � � � � � � � � � � � � � �� � � � � � � � � �� � � � � � � � � �
LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL � LL LL LL LL LL LL LL LL LL LL LL LL LL
FY 2024 Budget & Fiscal Policy Guidelines
Page 28
Historical City tax rates and % change in tax rate:
.
FY 1987 14.5819
FY 1988 13.9500 -4.33%
FY 1989 11.8007 -15.41%
FY 1990 11.6891 -0.95%
FY 1991 12.2660 +4.94%
FY 1992 12.7741 +4.14%
FY 1993 12.4989 -2.15%
FY 1994 12.6059 +0.86%
FY 1995 11.7821 -6.54%
FY 1996 11.7821 0.00°/a
FY 1997 11.3815 -3.40%
FY 1998 11.4011 +0.17%
FY 1999 11.0734 -2.87%
FY 2000 10.7160 -3.23%
FY 2001 11.0671 +3.28%
FY 2002 10.7608 -2.77%
FY 2003 10.2120 -5.10%
FY 2004 10.2730 +0.60%
FY 2005 10.0720 -1.96%
FY 2006 9.6991 -3.70%
FY 2007 9.9803 +2.90%
FY 2008 10.3169 +3.37%
FY 2009 9.9690 -3.37%
FY 2010 9.8577 -1.12%
FY 2011 10.0274 +1.72%
FY 2012 10.4511 +4.23%
FY 2013 10.7848 +3.19%
FY 2014 11.0259 +2.24%
FY 2015 11.0259 0.00°/a
FY 2016 11.0259 0.00°/a
FY 2017 11.1674 +1.28%
FY 2018 10.8922 -2.46%
FY 2019 10.5884 -2.79%
FY 2020 10.3314 -2.43%
FY 2021 10.1440 -1.81%
FY 2022 9.8890 -2.51%
FY 2023 9.7169 -1.74%
FY 2024 9.9075 +1.96%
1987 -2024 Average Change -0.97%
2020-2024 Average Change -1.31%
FY 2024 Budget & Fiscal Policy Guidelines
Page 29
From Fiscal Year 1987 through Fiscal Year 2024, the average annual change in the property
tax rate is a decrease of 0.97%. Over the last five years, the average annual change in the
property tax rate is a decrease of 1.31%.
Projected Impacts on Tax Askings and Average Residential Property Tax Rates
Project Impacts on Tax Askings & Average Residential Property Tax Rates
8.00% $12.00
6.00% $9.00
4.00% $6.00
2.00% $3.00
�
—% $—
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
% Change in Tax Rate City Tax Rate
Projected City tax rates and % change in tax rate*:
.
FY 2024 9.9075 1.96%
FY 2025 10.3954 4.92%
FY 2026 10.7046 2.97%
FY 2027 10.9393 2.19%
FY 2028 11.3513 3.77%
*Significantly impacted by the budget projection that the State of lowa began eliminating the
property tax backfill payments beginning in FY 2023.
FY 2024 Budget & Fiscal Policy Guidelines
Page 30
IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE
. �
- � i i .
. � . - . . -
FY 1989 "Cit " Pro ert Tax $453.99 -11.40% -$58.39
FY 1990 "Cit " Pro ert Tax $449.94 -0.89% -$4.04
FY 1991* "Cit " Pro ert Tax* $466.92 +3.77% $16.98
FY 1992 "Cit " Pro ert Tax $483.63 +3.58% $16.71
FY 1993* "Cit " Pro ert Tax* $508.73 +5.19% $25.10
FY 1994 "Cit " Pro ert Tax $510.40 +0.33% $1.51
FY 1995* "Cit " Pro ert Tax* $522.65 +2.40% $12.41
FY 1996 "Cit " Pro ert Tax $518.10 -0.87% -$4.54
FY 1997* "Cit " Pro ert Tax* $515.91 -0.42% -$2.19
FY 1998 "Cit " Pro ert Tax $512.25 -0.71% -$3.66
FY 1999 "Cit " Pro ert Tax* $512.25 0.00% $0.00
FY 2000 "Cit " Pro ert Tax $511.38 -0.17% -$0.87
FY 2001 "Cit " Pro ert Tax $511.38 0.00% $0.00
FY 2002 "Cit " Pro ert Tax $511.38 0.00% $0.00
FY 2003 "Cit " Pro ert Tax* $485.79 -5.00% -$25.58
FY 2004 "Cit " Pro ert Tax $485.79 0.00% $0.00
With Homestead Ad'. $493.26 +1.54% $7.46
FY 2005 "Cit " Pro ert Tax* $485.93 +0.03% $0.14
With Homestead Ad'.* $495.21 +0.40% $1.95
FY 2006 "Cit " Pro ert Tax 1 $494.27 +1.72% $8.34
With Homestead Ad'. 1 $504.62 +1.90% $9.41
FY 2007 "Cit " Pro ert Tax� 2 $485.79 -1.72% -$8.48
With Homestead Ad'.* $496.93 -1.52% -$7.69
FY 2008 "Cit " Pro ert Tax $496.93 0.00% $0.00
With Homestead Ad'. $510.45 +2.72% $13.52
FY 2009 "Cit " Pro ert Tax $524.53 +2.76% $14.08
With Homestead Ad'. $538.07 +5.41% $27.62
FY 2010 "Cit " Pro ert Tax $538.07 0.00% $0.00
With Homestead Ad'. $550.97 +2.40% $12.90
FY 2011 "Cit " Pro ert Tax $564.59 +2.47% $13.62
With Homestead Ad'. 3 $582.10 +5.65% $31.13
FY 2012 "Cit " Pro ert Tax $611.19 +5.00% $29.09
With Homestead Adj. (3) $629.78 +8.19% $47.68
FY 2013 "City" Property Tax $661.25 +5.00% $31.47
With Homestead Adj. (3) $672.76 +6.82% $42.98
FY 2014 "City" Property Tax $705.71 +4.90% $32.95
FY 2024 Budget & Fiscal Policy Guidelines
Page 31
� . -
� i � . .
� . - . . � . - . . -
FY 2015 "City" Property Tax $728.48 +3.23% $22.77
FY 2016 "City" Property Tax $747.65 +2.63% +$19.17
FY 2017 "City" Property Tax $755.70 +1.08% $8.05
FY 2018 "City" Property Tax $755.70 0.00% $0.00
FY 2019 "City" Property Tax $770.17 +1.91% $14.47
FY 2020 "City" Property Tax $770.17 0.00% $0.00
FY 2021 "City" Property Tax $769.08 -0.14% -$1.09
FY 2022 "City" Property Tax $769.08 0.00% $0.00
FY 2023 "City" Property Tax $791.82 +2.96% +$22.74
Average FY1989-FY2023 with Homestead Adj. +1.31% +$7.98
Average FY2019-FY2023 with Homestead Adj. +0.95% +$7.22
Average FY1989-FY2023 without Homestead Adj. +0.79% +$5.16
The average annual dollar change in residential property tax from 1989-2023 is an increase
of$7.98. The average annual dollar change over the last five years is an increase of$7.22.
Projected impact on average residential property:
- • • � . • � -
. . .
FY 2024 "City" Property Tax $815.57 +3.00% +$23.75
FY 2025 (4) "City" Property Tax $855.74 +4.93% +$40.17
FY 2026 "City" Property Tax $881.19 +2.97% +$25.45
FY 2027 "City" Property Tax $900.50 +2.19% +$19.31
FY 2028 "City" Property Tax $934.42 +3.77% +$33.92
* Denotes year of State-issued equalization orders.
^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%.
(1)The FY 2006 property tax calculation considers the 6.2°/o valuation increase for the average
residential homeowner as determined by the reappraisal.
(2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006.
(3)The City adopted a budget in FY 2011 and 2012 that provided no increase to the average
homeowner. The State of lowa underfunded the Homestead Property Tax Credit in both years
costing the average homeowner an additional $18.59 in FY 2012 and $11.51 in FY 2013. This
provided no additional revenues to the City, as this money would have come to the City from the
State if they appropriated the proper amount of funds.
(4)The City Assessor has estimated a 20% increase in assessed value for Residential property.
Residential property is restricted to a maximum growth rate of 3% in taxable value.
FY 2024 Budget & Fiscal Policy Guidelines
Page 32
Homestead Property Tax Credit
The Homestead Property Tax Credit was established by the state legislature to reduce the amount of
property tax collected. The intent of the credit was to be a form of tax relief and provide an incentive
for home ownership. The State Homestead Property Tax Credit works by discounting the tax
collected on the first $4,850 of a property's taxable value. This has no impact on what the City
receives from property tax collections, but provides tax relief for the average homeowner.
Beginning FY 2004, the State of lowa did not fully fund the State Homestead Property Tax Credit
resulting in the average homeowner paying the unfunded portion.Again, this has no impact on what
the City receives, however as a result has caused the average homeowner to pay more taxes.
Historical Percent of lowa Homestead Property Tax Credit Funded by the State of
I owa
2003 100%
2004 85%
2005 81%
2006 78%
2007 77%
2008 73%
2009 72%
2010 72%
2011 64%
2012 62%
2013 78%
2014 100%
2015 100%
2016 100%
2017 100%
2018 100%
2019 100%
2020 100%
2021 100%
2022 100%
2023 100%
2024 100%
-% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%
� Percent Funded
FY 2024 Budget & Fiscal Policy Guidelines
Page 33
IMPACT ON COMMERCIAL PROPERTY - EXAMPLE
. .• � . � . , � � , .
. . � - . � .
FY 1989 "City" Property Tax $2,106.42 -$384.19 -15.43%
FY 1990 "City" Property Tax $2,086.50 -$19.92 -0.95%
FY 1991 "City" PropertyTax $2,189.48 +$102.98 +4.94%
FY 1992 "City" Property Tax $2,280.18 +$90.70 +4.14%
FY 1993 "City" Property Tax $2,231.05 -$49.13 -2.15%
FY 1994 "City" Property Tax $2,250.15 +$19.10 +0.86%
FY 1995 "City" Property Tax $2,439.60 +$189.45 +8.42%
FY 1996 "City" Property Tax $2,439.60 $0.00 0.00%
FY 1997 "City" Property Tax $2,659.36 +$219.76 +9.01%
FY 1998 "City" Property Tax $2,738.43 +$79.07 +2.97%
FY 1999 "City" Property Tax $2,952.03 +$213.60 +7.80%
FY 2000 "City" Property Tax $2,934.21 -$17.82 -0.60%
FY 2001 "City" Property Tax $2,993.00 +$58.86 +2.00%
FY 2002 "City" Property Tax $2,910.25 -$82.84 -2.76%
FY 2003 "City" Property Tax $3,186.27 +$276.03 +9.48%
FY 2004 "City" Property Tax $3,278.41 +$92.15 +2.89%
FY 2005 "City" Property Tax $3,349.90 +$71.48 +2.18%
FY 2006 "City" Property Tax (1) $3,152.52 -$197.38 -5.89%
FY 2007 "City" Property Tax $3,538.03 +$385.50 +12.23°/o
FY 2008 "City" Property Tax $3,688.64 +$150.62 +4.26%
FY 2009 "City" Property Tax $3,554.71 -$133.94 -3.63%
FY 2010 "City" Property Tax $3,524.48 -$30.23 -0.85%
FY 2011 "City" Property Tax $3,585.16 +$60.68 +1.72%
FY 2012 "City" Property Tax $3,736.64 +$151.48 +4.23%
FY 2013 "City" Property Tax $3,855.96 +$119.32 +3.19%
FY 2014 "City" Property Tax $3,942.14 +$86.20 +2.23%
FY 2015 "City" Property Tax (2) $3,896.93 $147.72 -$45.21 -1.15%
FY 2016 "City" Property Tax (3) $3,139.16 $692.62 -$757.77 -19.45%
FY 2017 "City" Property Tax (4) $3,364.61 $982.19 +$225.45 +7.18%
FY 2018 "City" Property Tax (5) $3,280.44 $959.11 -$84.16 -2.50%
FY 2019 "City" Property Tax (6) $3,278.23 $843.08 -$2.21 -0.07%
FY 2020 "City" Property Tax (7) $3,160.71 $860.57 -$117.52 -3.58%
FY 2021 "City" Property Tax (8) $3,169.30 $779.03 +$8.59 +0.27%
FY 2022 "City" Property Tax (9) $3,069.57 $779.50 -$99.73 -3.15%
FY 2023 "City" Property Tax (10) $3,060.34 $721.73 -$9.23 -0.30%
FY 1989-2023 Average Change +$16.28 +0.79%
2019-2023 Average Change -$44.02 -1.37%
*Net of Business Property Tax Credit
FY 2024 Budget & Fiscal Policy Guidelines
Page 34
The average annual dollar change in commercial property taxes from 1989-2023 is a
increase of$16.28. The average annual dollar change over the last five years is a decrease
of-$44.02.
Projected impact on average commercial property:
- • . � . • � -
. . � - � . . . .
.
FY 2024 "City" Property Tax $3,330.95 $0.00 +$270.61 +8.84%
FY 2025 "City" Property Tax $3,494.98 $0.00 +$164.03 +4.92%
FY 2026 "City" Property Tax $3,598.92 $0.00 +$103.94 +2.97%
FY 2027 "City" Property Tax $3,677.82 $0.00 +$78.90 +2.19%
FY 2028 "City" Property Tax $3,816.34 $0.00 +$138.52 +3.77%
(1)The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2)The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3)The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4)The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5)The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6)The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7)The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8)The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9)The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2022.
(11)From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a
Business Property Tax Credit. The Business Property Tax Credit was deducted from the property
taxes owed and the credit was funded by the State of lowa. Beginning in FY 2024, all
commercial, industrial, and railroad properties will receive a property assessment limitation on
the first $150,000 of value of the property unit equal to the assessment limitation for residential
property. The value of the property unit that exceeds $150,000 receives the same ninety percent
assessment limitation it has in the past.The $125 million fund will continue to be appropriated
each year for reimbursements to counties. County auditors will file a claim for the first tier of the
assessment limitations in September. Assessors will continue to provide the unit configuration for
auditors as these definitions remained the same. Taxpayers are not required to file an application
to receive the first $150,000 of assessed value at the residential assessment limitation rate.
Lawmakers believe the new standing general fund will exceed the projected level of claims for
fiscal years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement
claims will begin being prorated. The projected backfill for Dubuque for the two-tier assessment
limitation in Fiscal Year 2024 is estimated to be $587,446.
FY 2024 Budget & Fiscal Policy Guidelines
Page 35
IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE
. _
• • • - • - � � • �
. . � - . � .
FY 1989 "City" Property Tax $5,900.35 -$1,074.65 -15.40%
FY 1990 "City" Property Tax $5,844.55 -$55.80 -0.95°/o
FY 1991 "City" Property Tax $6,133.00 +$288.45 +4.94%
FY 1992 "City" Property Tax $6,387.05 +$254.05 +4.14%
FY 1993 "City" Property Tax $6,249.45 -$137.60 -2.15°/o
FY 1994 "City" Property Tax $6,302.95 +$53.50 +0.86%
FY 1995 "City" Property Tax $5,891.05 -$411.90 -6.54°/o
FY 1996 "City" Property Tax $5,891.05 $0.00 0.00%
FY 1997 "City" Property Tax $5,690.75 -$200.30 -3.40°/o
FY 1998 "City" Property Tax $5,700.56 +$9.81 +0.17%
FY 1999 "City" Property Tax $5,536.70 -$163.86 -2.87°/o
FY 2000 "City" Property Tax $5,358.00 -$178.70 -3.23°/o
FY 2001 "City" Property Tax $5,533.00 +$175.00 +3.27%
FY 2002 "City" Property Tax $5,380.42 -$152.58 -2.76°/o
FY 2003 "City" Property Tax $5,106.00 -$274.42 -5.10°/o
FY 2004 "City" Property Tax $5,136.50 +$30.50 +0.60%
FY 2005 "City" Property Tax $5,036.00 -$100.50 -1.96°/o
FY 2006 "City" Property Tax (1) $5,814.61 +$778.61 +15.46%
FY 2007 "City" Property Tax $5,983.21 +$168.60 +2.90%
FY 2008 "City" Property Tax $6,184.95 +$201.74 +3.37%
FY 2009 "City" Property Tax $5,976.44 -$208.51 -3.37°/o
FY 2010 "City" Property Tax $5,909.69 -$66.75 -1.12°/o
FY 2011 "City" Property Tax $6,011.44 +$101.75 +1.72%
FY 2012 "City" Property Tax $6,265.43 +$253.99 +4.23%
FY 2013 "City" Property Tax $6,465.48 +$200.05 +3.19%
FY 2014 "City" Property Tax $6,610.00 +$144.52 +2.24%
FY 2015 "City" Property Tax (2) $6,131.80 $147.72 -$478.20 -7.23°/o
FY 2016 "City" Property Tax (3) $5,256.41 $692.62 -$875.39 -14.28%
FY 2017 "City" Property Tax (4) $5,043.36 $982.19 -$213.05 -4.05°/o
FY 2018 "City" Property Tax (5) $4,917.78 $959.11 -$125.58 -2.49°/o
FY 2019 "City" Property Tax (6) $4,869.91 $843.08 -$47.87 -0.97°/o
FY 2020 "City" Property Tax (7) $4,713.76 $860.57 -$156.15 -3.21°/o
FY 2021 "City" Property Tax (8) $4,694.17 $779.03 -$19.59 -0.42°/o
FY 2022 "City" Property Tax (9) $4,556.11 $779.50 -$138.06 -2.94°/o
FY 2023 "City" Property Tax�,o� $4,521.00 $721.73 -$35.11 -0.77°/o
FY 1989-2023 Average Change -$70.11 -1.09%
2019-2023 Average Change -$79.36 -1.66%
*Net of Business Property Tax Credit
FY 2024 Budget & Fiscal Policy Guidelines
Page 36
The average annual dollar change in industrial property taxes from 1989-2023 is a decrease
of$70.11. The average annual dollar change over the last five years is a decrease of
$79.36.
Projected impact on average industrial property:
. , . .
. � - � . . . .
.
FY 2024 "City" Property Tax $4,521.00 $0.00 -$138.06 -0.77%
FY 2025 "City" Property Tax $4,820.27 $0.00 +$299.27 +6.62%
FY 2026 "City" Property Tax $5,057.64 $0.00 +$237.37 +4.92%
FY 2027 "City" Property Tax $5,208.06 $0.00 +$150.42 +2.97%
FY 2028 "City" Property Tax $5,322.23 $0.00 +$114.17 +2.19%
(1)The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2)The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3)The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4)The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5)The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6)The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7)The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8)The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9)The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023.
(11) From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for
a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property
taxes owed and the credit was funded by the State of lowa. Beginning in FY 2024, all commercial,
industrial, and railroad properties will receive a property assessment limitation on the first $150,000
of value of the property unit equal to the assessment limitation for residential property. The value of
the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it
has in the past.The $125 million fund will continue to be appropriated each year for reimbursements
to counties. County auditors will file a claim for the first tier of the assessment limitations in
September. Assessors will continue to provide the unit configuration for auditors as these definitions
remained the same. Taxpayers are not required to file an application to receive the first $150,000 of
assessed value at the residential assessment limitation rate. Lawmakers believe the new standing
general fund will exceed the projected level of claims for fiscal years 2024 through 2029. Then in
fiscal year 2030, the local government reimbursement claims will begin being prorated. The
projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2024 is estimated
to be $587,446.
FY 2024 Budget & Fiscal Policy Guidelines
Page 37
IMPACT ON MULTI-RESIDENTIAL PROPERTY - EXAMPLE
� • - � � •
. . � . r .
FY 2015 "City" Property Tax $2,349.34
FY 2016 "City" Property Tax $2,225.69 -$123.65 -5.26%
FY 2017 "City" Property Tax $2,160.39 -$65.30 -2.93%
FY 2018 "City" Property Tax $2,015.48 -$144.91 -6.71%
FY 2019 "City" Property Tax $1,870.21 -$145.27 -7.21%
FY 2020 "City" Property Tax $1,737.92 -$132.29 -7.07%
FY 2021 "City" Property Tax $1,896.65 +$158.73 +9.13%
FY 2022 "City" Property Tax $1,751.66 -$144.99 -7.64%
FY 2023 "City" Property Tax $1,625.55 -$126.11 -7.20%
Average FY 2016-FY 2023 -$90.47 -4.36%
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi-residential, which requires a rollback, or
assessment limitations order, on multi-residential property which will eventually equal the
residential rollback. Multi-residential property includes apartments with 3 or more units.
Rental properties of 2 units were already classified as residential property.
The State of lowa will not backfill property tax loss from the rollback on multi-residential
property. The rollback will occur as follows:
- . . . � , � . .
FY 2017 86.25% $331,239
FY 2018 82.50% $472,127
FY 2019 78.75% $576,503
FY 2020 75.00% $691,640
FY 2021 71.25% $952,888
FY 2022 67.50% $752,366
FY 2023 63.75% $662,821
FY 2024 54.65% $1,186,077
Total $5,625 661
�54.65°/o = Current residential rollback
This annual loss in tax revenue of $1,186,077 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 $5,625,661 in total, meaning landlords will have
paid that much less in property taxes. The state did not require landlords to charge lower
rents or to make additional investment in their property.
In Fiscal Year 2024, the multi-residential property class was eliminated and is
reported with the residential property class.
FY 2024 Budget & Fiscal Policy Guidelines
Page 38
HISTORY OF INCREASES IN PROPERTY TAX ASKINGS
� . � , . - . . .
� . . - .
FY 1989 $10,918,759 -12.00% -11.40%
Sales Tax Initiated
FY 1990 $10,895,321 -0.21% -0.89%
FY 1991 $11,553,468 +6.04% +3.77%
FY 1992 $12,249,056 +6.02% +3.58%
FY 1993 $12,846,296 +4.88% +5.19%
FY 1994 $13,300,756 +3.54% +0.33%
FY 1995 $13,715,850 +3.12% +2.40%
FY 1996 $14,076,320 +2.63% -0.87%
FY 1997 $14,418,735 +2.43% -0.42%
FY 1998 $14,837,670 +2.91% -0.71%
FY 1999 $15,332,806 +3.34% 0.00%
FY 2000 $15,285,754 -0.31% -0.17%
FY 2001 $15,574,467 +1.89% 0.00%
FY 2002 $15,686,579 +0.72% 0.00%
FY 2003 $15,771,203 +0.54% -5.00%
FY 2004 $16,171,540 +2.54% 0.00%
FY 2005 $16,372,735 +1.24% +0.03%
FY 2006 $16,192,215 -1.10% +1.72%
FY 2007 $17,179,994 +6.10% -1.72%
FY 2008 $18,184,037 +5.84% 0.00%
FY 2009 $18,736,759 +3.04% +2.76%
FY 2010 $19,095,444 +1.91% 0.00%
FY 2011 $19,878,962 +4.10% +2.47%
FY 2012 $21,284,751 +7.07% +5.00%
FY 2013 $22,758,753 +6.93% +5.00%
FY 2014 $23,197,623 +1.93% +4.90%
FY 2015 $24,825,015 +7.02% +3.23%
FY 2016 $24,906,544 +0.33% +2.63%
FY 2017 $26,375,291 +5.90% +1.08%
FY 2018 $25,863,049 -1.94% 0.00%
FY 2019 $26,494,205 +2.44% +1.91%
FY 2020 $26,296,081 -0.75% 0.00%
FY 2021 $26,202,568 -0.36% -0.14%
FY 2022 $26,205,437 +0.01% 0.00%
FY 2023 $26,205,437 0.00% +2.96%
Avera e FY 1989-2023 +2.64% +0.79%
**Does not reflect State unfunded portion of Homestead Credit.
FY 2024 Budget & Fiscal Policy Guidelines
Page 39
IMPACT ON TAX ASKINGS AND AVERAGE RESIDENTIAL PROPERTY
To maintain the current level of service based on the previous assumptions would require
the following property tax asking increases:
. . - . - . . . � . . . . � .
� . . . - . . - . - . . -
FY 2023 $26,205,437
FY 2024 $26,623,475 +1.60% +3.00% +$23.75
FY 2025 $28,643,682 +7.59% +4.93% +$40.17
FY 2026 $30,085,098 +5.03% +2.97% +$25.45
FY 2027 $31,360,194 +4.24% +2.19% +$19.31
FY 2028 $33,191,610 +5.84% +3.77% +$33.92
The recommended guideline is a 3.00% or $23.75 increase for the average
residential property owner assuming the Homestead Property Tax Credit is fully
funded. A one percent increase in the tax rate will generate approximately
$260,687.
These guidelines include $711,000 for recurring funded by property taxes and
$711,586 for non-recurring improvement packages funded by FY2024 DRA
Distribution.
lowa Senate File 634 passed during the 2019 legislative sessions, makes changes to lowa
city and county budgets and taxes for Fiscal Year 2021 and later. Additional steps have been
added to the budget approval process:
1. Determine a maximum amount of taxes that the municipality will certify to be
levied as property taxes from certain levies in the next fiscal year (called the
"total maximum property tax dollars"), and prepare a resolution that
establishes that amount of"total maximum property tax dollars" for the next
fiscal year.
The "total maximum property tax dollars" includes taxes for city government
purposes under section 384.1 (general fund levy), for the city's trust and
agency fund for pensions under section 384.6, subsection 1, for the city's
emergency fund under section 384.8, and for the levies authorized under
certain subsections of section 384.12: subsection 8 (certain bridges),
subsection 10 (maintenance of a municipal transit system or regional transit
district), subsection 11 (leases of buildings to be operated as civic centers),
subsection 12 (operating and maintaining a civic center), subsection 13
(planning a sanitary disposal project), subsection 17 (premiums for various
insurance types), and subsection 21 (support of a local emergency
management commission), but excludes additional approved at election under
section 384.12, subsection 19.
FY 2024 Budget & Fiscal Policy Guidelines
Page 40
The maximum property tax dollars calculated and approved by resolution
includes those amounts received by the municipality as replacement taxes
under chapter 437A or 437B.
2. Set a time and place for a public hearing on the resolution.
3. Publish notice of the public hearing on the resolution in the newspaper(s) for
official notices between 10 and 20 days prior to the public hearing.
Additionally, if the municipality has a website, the notice must be posted on the
website, and if the municipality maintains social media accounts, then the
notice (or a link to the notice) must be posted on each social media account by
the day of publication in the newspaper(s).
Notice of the public hearing on the resolution must include:
a. The sum of the current fiscal year's actual property taxes certified for
levy under identified levies.
b. The "effective tax rate" as defined in the code for those levies.
c. The proposed maximum property tax dollars that may be certified for
levy for the budget year under the identified levies.
d. If the proposed maximum property tax dollars exceeds the current fiscal
year's actual property tax dollars certified, a statement of the major
reasons for the increase.
4. Hold a public hearing on the resolution, at which residents and property
owners may present oral or written objections.
5. Following the public hearing, the governing body may decrease the proposed
"maximum property tax dollars" amount but may not increase the amount.
6. Adopt the resolution. If the "total maximum property tax dollars" amount is
greater than 102% of the current fiscal year's actual property taxes from the
identified levies, then the resolution must pass the governing body by a two-
thirds majority of the full City Council.
FY 2024 Budget & Fiscal Policy Guidelines
Page 41
CAPITAL IMPROVEMENT BUDGET GUIDELINES
U. INTEGRATION OF CAPITAL RESOURCES
To obtain maximum utilization, coordination and impact of all capital improvement
resources available to the City, state and federal block and categorical capital
grants and funds shall be integrated into a comprehensive five-year Capital
Improvement Program (CIP) for the City of Dubuque.
V. INTEGRITY OF CIP PROCESS
The City shall make all capital improvements in accordance with an adopted
Capital Improvement Program (CIP). If conditions change and projects must be
added and/or removed from the CIP, the changes require approval by the City
Council.
W. RENOVATION AND MAINTENANCE
.,,.....,
Capital improvement expenditures should concentrate on renovating and
maintaining existing facilities to preserve prior community investment.
X. NEW CAPITAL FACILITIES
Construction of new or expanded facilities which would result in new or
substantially increased operating costs will be considered only if:
1) their necessity has been clearly demonstrated
2) their operating cost estimates and plans for providing those operating costs
have been developed
3) they can be financed in the long term; and
4) they can be coordinated and supported within the entire system.
Y. COOPERATIVE PROJECTS
Increased efforts should be undertaken to enter mutually beneficial cooperative
capital improvement projects with the county, school district and private groups.
Examples include cost-sharing to develop joint-use facilities and cost-sharing to
improve roads and bridges are examples.
FY 2024 Budget & Fiscal Policy Guidelines
Page 42
Z. USE OF GENERAL OBLIGATION BONDS
DISCUSSION
The lowa Constitution limits the General Obligation debt of any city to 5% of the actual
value of the taxable property within the city. The lowa legislature has determined that
the value for calculating the debt limit shall be the actual value of the taxable property
prior to any "rollback" mandated by state statute.
On October 15, 2012, the City Council adopted a formal Debt Management Policy for
the City of Dubuque. Prior to adoption of the formal policy, the City had already been
practicing much of the policy, although the formal policy included some new additions.
The most significant components of the Debt Management Policy include an internal
policy of maintaining the City's general obligation outstanding debt at no more than 95%
(except as a result of disasters) of the limit prescribed by the State constitution as of
June 30th of each year. It is projected as of June 30, 2023 the City will be at 43.39%.
City will not use short-term borrowing to finance operating needs except in the case of
an extreme financial emergency which is beyond its control or reasonable ability to
forecast. Currently there is no such debt, and none will be recommended in this
process.
Bond Financing Stipulations
• Recognizing that bond issuance costs (bond counsel, bond rating, and financial
management fees) add to the total interest costs of financing:
• Bond financing should not be used if the aggregate cost of projects to be
financed by the bond issue is less than $500,000
• City will consider long-term financing for the construction, acquisition,
maintenance, replacement, or expansion of physical assets (including land) only
if they have a useful life of at least six years
• City shall strive to repay 20 percent of the principal amount of its general
obligation debt within five years and at least 40 percent within ten years.
• The City shall strive to repay 40 percent of the principal amount of its revenue
debt within ten years.
Debt Service Payments
Total annual debt service payments on all outstanding debt of the City shall not exceed
25% of total annual receipts across all the City's funds. As of June 30, 2023, it is
projected the City will be at 8.40%.
Internal Reserve
It shall be the goal of the City to establish an internal reserve equal to maximum annual
debt service on future general obligation bonds issued that are to be abated by
revenues and not paid from ad-valorem property taxes in the debt service fund. This
shall begin with debt issued after July 1, 2013. This reserve shall be established by the
fund or revenue source that expects to abate the levy, and shall be carried in said fund
or revenue source on the balance sheet as a restricted reserve. This reserve does not
FY 2024 Budget & Fiscal Policy Guidelines
Page 43
exist now, except where required by bond covenants. This internal reserve would be
implemented by adding the cost of the reserve to each debt issuance.
In November of 2022, Moody's Investors Service ("Moodys") released a new rating
methodology for cities and counties. Two significant changes result from the new
methodology; cities are now assigned an issuer rating meant to convey the
creditworthiness of the issuer as a whole without regard to a specific borrowing, and
business-type enterprise funds are now being considered together with general fund
revenues and balances in the determination of financial performance.
Coincident with the release of its methodology, Moody's reviewed the City of Dubuque.
The City was assigned an issuer rating of Aa3, which is equivalent to the existing rating
on its general obligation bonds. At that time, the rating agency did not take any
additional action on the City's bond rating, nor did it indicate a need for further review.
Under the new methodology, there are two metrics that contribute to financial
performance. Available Fund Balance Ratio ("AFBR") _ (Available Fund Balance + Net
Current Assets/Revenue) and Liquidity Ratio ("LR") _ (Unrestricted Cash/Revenue). For
Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in
connection to its annual issuance of bonds. At that time, Moody's calculated the City's
AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations
were likely elevated due to unspent ARPA funds. The change in methodology will now
consider revenues and net assets from business-type activities in these calculations. As
such, the City's general obligation rating will now be directly impacted by the financial
performance of enterprise funds. Establishing rates and charges adequate to provide
both debt service coverage and significant liquidity will be necessary to maintain the
City's ratings.
General Obligation Debt
Fiscal Year 2023 Debt
FY 2023 Debt Limit: The FY 2021 assessable value of the community for calculating the
statutory debt limit is $5,185,945,799, which at 5%, indicates a total General Obligation
debt capacity of$259,297,290.
Based on Outstanding G.O. debt (including tax increment debt, remaining
payments on economic development TIF rebates, and general fund lease
agreement) on June 30, 2023 will be $104,181,408 (40.75% of the statutory debt
limit) leaving an available debt capacity of $155,115,882 (59.25%). In FY 2022 the
City was at 43.21% of statutory debt limit, so 40.75% in FY 2023 is a 5.70%
decrease in use of the statutory debt limit.
It should be noted that most of the City of Dubuque's outstanding debt is not paid for
with property taxes (except TIF), but is abated from other revenues. Exceptions include
FY 2024 Budget & Fiscal Policy Guidelines
Page 44
one issuance for the replacement of a Fire Pumper truck in the amount of $1,410,000
with debt service of$76,700 in FY 2023 and one issuance for the franchise fee litigation
settlement in the amount of$2,800,000 with debt service of$140,000 in FY 2023.
Included in the debt is $3,466,272 of property tax rebates to businesses creating and
retaining jobs and investing in their businesses.
Statutory Debt Limit
. ■ - • � . . � - • • - . � � - •
• � - • - •
2022 $241,616,084 $105,875,471 43.21%
2023 $259,297,290 $105,657,516 40.75%
FY23 Statutory Debt Limit Used
(as of June 30th)
100%90% u
87/o
0
82 0 79% 79%
87° 72% 74% 70%
75% 6% 0 66% 66% 62��a
60/o
53%
a 47% 43% 43% o o a
50/0 41 /0 41 /0 40/0 37o/a o
34/0 30% o
26/0 23% o
25% 20/o �7%
—%
TI TI 71 T TI TI �'I TI TI TI TI TI TI TI TI TI TI TI
� � � � � � � � � � � � � � � � � �
� s � � � IV N N 1�1 N N N N N N W W W
Ci7 � V 00 �O O � N W A U� 6� �I OD tD O � N
FY16 Adopted f FY23 Adopted
The City also has debt that is not subject to the statutory debt limit. This debt includes
revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater
fees on June 30, 2023 will have a balance of $148,546,235. The total City
indebtedness as of June 30, 2023, is projected to be $251,517,642. The total City
indebtedness as of June 30, 2022, was $252,137,581. In FY 2023, the City will have a
projected $619,939 or 1.90% less in debt. The City is using debt to accomplish
necessary projects and to take advantage of the attractive interest rates in the current
market.
FY 2024 Budget & Fiscal Policy Guidelines
Page 45
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 lowa for Fiscal Year 2022
with a population over 50,000:
Fiscal Year 2022 Legal Debt Limit Comparison for Eleven Largest lowa Cities
Rank City Legal Debt Limit Statutory Debt Percentage of Legal
(5%) Outstanding Debt Limit Utilized
11 Des Moines $ 718,164,068 $ 584,079,175 81.33 %
10 Waterloo $ 204,491,592 $ 123,519,127 60.40 %
9 Sioux City $ 268,884,360 $ 146,463,622 54.47 %
8 Cedar Rapids $ 619,108,725 $ 334,460,000 54.02 %
7 Davenport $ 386,405,519 $ 202,220,000 52.33 %
6 W. Des Moines $ 468,115,757 $ 239,455,000 51.15 %
5 Dubuque (FY23) $ 259,297,290 $ 105,657,516 40.75 %
4 Ankeny $ 354,600,527 $ 110,000,000 31.02 %
3 Ames $ 259,576,468 $ 62,570,000 24.10 %
2 Council Bluffs $ 309,959,314 $ 59,243,902 19.11 %
1 lowa City $ 350,967,316 $ 65,775,000 18.74 %
Average w/o Dubuque $ 394,027,365 $ 192,778,583 44.67 %
Percent of Legal Debt Limit Utilized
�oo°io
81.33%
75%
60.40%
51.15% 52.33% 54.02% 54.47%
50% 40.75% 44.67%
31.02%
24.10%
25% 18.74% 19.11%
� - -
0%
\o�aG��.� �G\����i5 P�eS P��e�� O J��Q�e O���a�e ��o\�e5 a�e�Qo�' ��a��d5 `o J�G��.� a�e��oo �o\,�e5
Go�. ��o �e p Geda 5 `� �e5
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FY 2024 Budget & Fiscal Policy Guidelines
Page 46
Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in
lowa with a population over 50,000 and Dubuque is slightly above the average of the
other Cities.
FY23 Total Debt (In Millions)
$324
$302.3
$297 $290.1
$282.0 $279.9
$295.5
$270 $285.7 $265.6 $267.4
$274.7 $250.6 $255.9$251.5 $256.7 $257.9$259.3 $258.8
$264.5 �
� $243 $252.2 $252.1 36.1
O $244.3 $241.4
- 212.9
� $216 $2zs.2
189.6
$189
$162
$168.5
$135 $152.2
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32
FY16 Adopted � FY23 Adopted
By the end of the Fiscal Year 2023 5-Year Capital Improvement Program (CIP) budget
the total amount of debt for the City of Dubuque would be $258.8 million (34% of the
statutory debt limit) and the projection is to be at $152 million (17% of statutory debt
limit) within 10 years.
Part of the City's FY 2014 debt was in the form of a grant from the lowa Flood Mitigation
Program. Through a new state program, the City is able to issue $28.25 million in
revenue bonds payable from the 5 percent State Sales Tax increment for projects in the
Bee Branch Watershed allowing the City to complete the Bee Branch Creek
Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete
North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water
Plant Flood Control and complete 17t" Street Storm Sewer over the next twenty years.
The FY 2024-2028 Capital Improvement Program is currently being reviewed and
balanced, so there are no revised Fiscal Year 2024 debt projections yet.
As we approach the preparation of the FY 2024-2028 Capital Improvement Program
(CIP) the challenge is not the City's capacity to borrow money but (a) how to identify,
limit, and prioritize projects which justify the interest payments and; (b) how to balance
high-priority projects against their impact on the property tax rate.
FY 2024 Budget & Fiscal Policy Guidelines
Page 47
There are many high priority capital improvement projects which must be constructed
during the FY 2024 - FY 2028 period. The potential of partially forgivable State
Revolving Fund Loans and an increase in grant funding may impact the need to borrow
for projects. As in the past, debt will be required on several major capital projects,
including the Bee Branch Watershed Project, Airport Improvements, Park
Improvements, Sidewalk and Street Improvements, Sanitary Sewer Fund, Parking
Fund, and Water Fund. Borrowings will also include smaller projects and equipment
replacements such as Park developments and Public Works equipment. These smaller
borrowings will be for a term not exceeding the life of the asset and not less than six
years in accordance to the Debt Management Policy. Alternative sources of funds will
always be evaluated (i.e. State Revolving Loan Funds) to maintain the lowest debt
service cost.
AA. ROAD USE TAX FUND
DISCUSSION
Actual Road Use Tax Fund receipts are as follows:
Road Use Tax
(In Millions)
FY 2013 $5.5
FY 2014 $5.7
FY 2015 $6.0
FY 2016 $7.1
FY 2017 $7.2
FY 2018 $7.3
FY 2019 $7.5
FY 2020 $7.4
FY 2021 $8.6
FY 2022 $8.2
$1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0
The FY 2023 budget was based on receiving $7,600,000 in Road Use Tax funds. In FY
2023, 100% of the Road Use Tax income is in the operating budget. The State of lowa
increased the gas tax 10 cents per gallon in FY 2016.
With increases in City DMATS and State Road Use Tax funds, the City will be able to
substantially add to the number of street lights and continue with major road
improvements.
FY 2024 Budget & Fiscal Policy Guidelines
Page 48
It is preferable to shift Road Use Tax funds to the capital budget for street maintenance
and repair to reduce the need to borrow funds for routine street maintenance and
improvements. This shift cannot occur until there are increased revenues or reduced
expense that would allow this shift without a property tax impact.
BB. COMMERCIAL AND INDUSTRIAL DEVELOPMENT
Current City, commercial and industrial development efforts should be continued to (a)
preserve current jobs and create new job opportunities and (b) enlarge and diversify
the economic base. Financing these efforts and programs should continue to be a high
priority.
CC. HOUSING
To maintain an adequate supply of safe and decent housing, the City should strive to
preserve existing single family and rental housing that is not substandard and provide
opportunities for development of new housing, including owner occupied, within the
City's corporate limits for all residents, particularly for people of low and moderate
income. Workforce rental housing is becoming increasingly important and the City
provides incentives for building rehabilitations. In 2023, the City Council adopted
housing incentive programs through the use of Tax Abatement and Tax Increment
Financing.
DD. SALES TAX
GUIDELINE
Sales Tax revenue shall be used according to the following split:
Sales Tax 50%: Property Tax Relief
� Sales Tax 30%:
(a)The reduction by at least 75% of street special assessments.
��� (b)The maintenance and repair of streets.
�0%'0
Sales Tax 20%:
(a)The upkeep of City-owned property such as sidewalks, steps, storm
��o�-� sewers, walls, curbs, traffic signals and signs, bridges, buildings, and
facilities (e.g.Airport, Five Flags Center, Library, Law Enforcement Center,
City Hall, Fire Stations, Parks, and Swimming Pools).
(b)Transit equipment, such as buses
(c) Riverfront and wetland development
(d) Economic Development Projects
FY 2024 Budget & Fiscal Policy Guidelines
Page 49
EE. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE
DUBUQUE RACING ASSOCIATION
DISCUSSION
The contract with the Dubuque Racing Association calls for distribution at the end of its
fiscal year, December 31St, of 50 percent of its net cash operating funds to the City of
Dubuque. In early-February, the City receives payment of proceeds to be distributed.
These proceeds are then allocated for capital improvements, with the highest priority
given to reducing the City's annual borrowing.
The Dubuque Racing Association provides the City with projections of future
distributions. Since gaming is a highly volatile industry, the estimates are discounted
prior to including them in the City's Five-Year CIP.
A portion of the prior year February 2023 DRA distributions will be used in Fiscal Year
2024 to offset DRA rent loss of $541,398. In addition, of the February 2024 projections
of operating surplus, $210,055 will be used to offset the new State legislation which
reduced the residential rollback and reduced City resources by $627,000, $291,349 will
be used for the purchase of Solid Waste tipper carts, and the balance will be used for
non-recurring improvement packages. This is a change from past use of DRA
distributions because all funds will be used for Fiscal Year 2024 operations. A change
from past use of DRA distributions, 0% of the February 2024 projections of operating
surplus have been anticipated as resources to support the Fiscal Year 2024 capital
improvement projects. The estimates received from the DRA will be reduced by 5
percent for FY 2026 resources, 10 percent for FY 2027, and 15 percent for FY 2028
resources, to provide a margin of error in case the estimates are not realized.
$541,398 of prior year February 2023 DRA distributions will be used in the Fiscal Year
2024 operating budget to offset DRA rent loss. In addition, of the February 2024
projections of operating surplus, $210,055 will be used to offset the new State
legislation which reduced the residential rollback and reduced City resources by
$627,000, $291,349 will be used for the purchase of Solid Waste tipper carts, and the
balance will be used for FY2024 non-recurring improvement packages. This is a
change from past use of DRA distributions because all funds will be used for Fiscal
Year 2024 operations.ln Fiscal Year 2025 and beyond, the City anticipates distribution
of a significant amount of net cash proceeds for use in the Capital Improvement
Program. These amounts will be budgeted in the Five-Year CIP in the year they are
received and will be used to reduce required General Obligation borrowing. The three
out-years will be discounted by 5 percent, 10 percent, and 15 percent respectively.
FY 2024 Budget & Fiscal Policy Guidelines
Page 50
FF. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING
BUDGET EXPENSE
Capital improvement expenditures that will reduce future maintenance and operating
expense will receive priority funding and these types of initiatives will be encouraged in
all departments and funding sources as a means of maximizing the use of available
resources. This emphasis reflects fiscally responsible long-range planning efforts.
GG. USE OF GAMING-RELATED RECEIPTS
D�SCUSSIC`"'
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, 2055.
The following shows the historical split of DRA gaming taxes and rents between the
City's operating and capital budgets:
Split of DRA Gaming Taxes & Rents Between Operating & Capital Budgets
150% -
100% -
50% 25% 24% 15% 14% 10% 3% —% 1% 3% 4% 4% —% —% —% —% —% —% —% —%
50% - 0 97%100%99% 97% 96% 96%100%100%100%100%100%100%100%100%
75% 76% 85% 87% 90/o
50% � � � � � � � � � � � �
—% -
O�` ��� �� O*� "���* -l`�� -l`�� *�*� �� `�'b �� O '�*M '�*M '�*M ��`1'��-l`1'��-l`1'��-l`i''l ��`1'�b
F� � ������� ��� � � ��� �� �� �� ����MM ti M� �M�M�
F t� �� ���1• ���L
Operating Capital
FY 2024 Budget & Fiscal Policy Guidelines
Page 51
Notable Changes:
*
FY 2004 A new lease took effect with the Dubuque Racing Association for lease of the
Dubuque Greyhound Park and Casino. This new lease was negotiated after the FY
2005 budget was approved and raised the lease payment from '/2% of coin-in to 1% of
coin-in. This new lease and the expansion of gaming at Dubuque Greyhound Park and
Casino, from 600 gaming positions to 1,000 gaming positions, effective August 1, 2005,
provided additional revenues to the City of Dubuque.
**
FY 2009 The Diamond Jo expanded to a land-based barge casino facility and
increased to 1,100 slots on December 1, 2008. This expansion was projected to
decrease the Q gaming market and correspondingly the coin-in by just over 21 percent.
Based on the projected market share loss, the City did not receive a distribution of cash
flows from the Dubuque Racing Association (DRA) in Fiscal Years 2009 and 2010.
***
FY 2010 The operating portion of the split now includes the debt service required on
the 2002 general obligation bonds for the America's River Project that was previously
considered as part of the capital portion of the DRA lease. Debt obligations are
considered a continuing annual expense and are more accurately reflected as part of
the operating portion of the DRA lease.
****
FY 2011 DRA distributions restarted in FY 2011 instead of the projected year of FY
2012.
*****
FY 2016 A reduction in revenue in the Greater powntown TIF urban renewal area
resulted in reduced revenues to make debt payments and it was necessary for the
general fund to support $84,104 in FY 2015 and $78,242 in FY 2016 of debt service
payments, which were funded by reducing the amount of gaming revenues from taxes
and DRA lease that goes to capital recommended in FY 2016.
*******
FY 2021 A lease amendment took effect with the Dubuque Racing Association for
the lease of the Q Casino. This lease amendment added a payment equal to '/2% of
monthly sports wagering conducted on Q Sportsbook retail or Q advance deposit sports
wagering internet site.
�������FY 2022 A lease amendment 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, the amended lease has an expiration date of December 31,
2036.
��������FY 2023 A lease amendment took effect with the Dubuque Racing Association for
lease of the Q Casino. This lease amendment extended the termination date from 2036
to 2055. The amendment allows $1.5 million of cash reserve fund as a down payment of
a construction loan in FY23.
FY 2024 Budget & Fiscal Policy Guidelines
Page 52
The change in market share and changes in the lease agreement impacts the City's
lease payment from the DRA. The new lease effective 1/1/22 requires the DRAto pay
the City 1.5 percent of coin in from slot machines (previously 1 percent),4.8 percent of
gross revenue from table games, and 0.5 percent of sports wagering.
In calendar year 2022, gross gaming revenues were down -3.9% for the DRA and the
Diamond Jo was down -3.4% as compared to calendar year 2021. As compared to
calendar year 2019 (pre-COVID), gross gaming revenues were up 4.1% for the DRA
and the Diamond Jo was up 4.8%. In calendar year 2022, the DRA showed increases,
up 14.9%, in sports betting revenue, hotel room revenue, food and beverage sales, and
other revenue as compared to calendar year 2021. This resulted in calendar year 2022
total gross revenue being slightly down at -0.9% as compared to calendar year 2021.
The current Dubuque market is approximately $126 million annually in 2022 down from
the $130 million market in 2021 and up from the $120 million market in 2019. DRA
share of the market was 41.1% in 2022, 41.2% in 2021 and 41.2% in 2019. The DRA
has projected a -6.2% decrease in gross gaming revenue and a -6.0% decrease in total
gross revenue for calendar year 2023. The DRA gaming projections include growth in
gaming revenues over the next five years with a growth rate of 4.7% in FY 2024, a
growth rate of 1.9% in FY 2025, a growth rate of 4.0% in FY 2026, and a growth decline
of-4.0% in FY 2027. Two key factors to note for the five-year forecast budget are 1.) it is
derived from the feasibility study done by the consultants Global Market Advisers and
2.) it takes into consideration potential disruption caused by construction, the opening of
remodeled or new assets on our campus and potential new competition in calendar year
2027.
During 2022, lowa passed legislation that put a moratorium on new casino licenses for a
two-year period. This law came as Linn County (Cedar Rapids) was preparing to get a
casino license approved by the IRGC. Our five-year budget forecast that Linn County
will pursue a casino license after the moratorium expires and a new casino will be
operational in calendar year 2027.
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 2024.
Ho-Chunk Nation is planning to break ground in the spring of 2023 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.
The 50¢ per patron tax previously received from the Diamond Jo was replaced by a
$500,000 fixed payment based on their revised parking agreement which expires June
16, 2029.
Pared by: Jennifer Larson City of Dubuque 50 W 13" St Dubuque IA 52001 563 589 4322
Return to: Jennifer Larson, City of Dubuque, 50 W. 131" St. Dubuque, IA 52001, 563.589-4100
RESOLUTION NO. 32-23
SETTING A PUBLIC HEARING ON THE FISCAL YEAR 2024 MAXIMUM
PROPERTY TAX DOLLARS FOR THE AFFECTED TAX LEVY TOTAL
Whereas, pursuant to State of Iowa SF634, the City of Dubuque is required to
hold a public hearing to consider the proposed Fiscal Year 2024 city maximum
property tax dollars for the affected levy total; and
Whereas, the notice of hearing must be published not less than 10 days and not
more than 20 days prior to the date of the hearing; and
Whereas, at said hearing, the City Council is required to pass a resolution
adopting the fiscal year maximum property tax dollars for the affected levy total.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA THAT:
Section 1. The Dubuque City Council will conduct a public hearing on February
20, 2023 at 6:30 p.m. at City Council Chambers, 350 W 6th St. and virtually.
Section 2. The Chief Financial Officer is hereby directed to prepare a Resolution
of Maximum Property Tax Dollars for the Affected Tax Levy Total with the required
information pursuant to SF634.
Section 3. The City Clerk is hereby directed to publish the notice of public
hearing pursuant to SF634.
Passed, adopted and approved this 6th day of February 2023.
Attest:
0
Adrienne N. Breitfelder, City Clerk
Current Year Certified
Property Tax 2022- 2023
Budget Year Effective
Property Tax 2023 - 2024
Budget Year Proposed Maximum
Property Tax 2023 - 2024
Annual
% CHG
2,695,861,021 2,682,829,520 2,682,829,520
$21,836,474 $21,836,474 $21,730,919
$0 $0 $0
$1,571,981 $1,571,981 $1,579,811
$0 $0 $0
$0 $0 $0
$0 $0 $0
$490,975 $490,975 $573,461
Support of Local Emer. Mgmt. Commission $0 $0 $0
$0 $0 $0
$0 $0 $0
$2,237,236 $2,237,236 $2,662,410
$0 $0 $0
$26,136,666 $26,136,666 $26,546,601 1.57%
$9.69511 $9.74220 $9.89500
If applicable, the above notice also available online at:
*Total city tax rate will also include voted general fund levy, debt service levy, and capital improvement reserve levy
NOTICE OF PUBLIC HEARING -CITY OF DUBUQUE - PROPOSED PROPERTY TAX LEVY
Fiscal Year July 1, 2023 - June 30, 2024
The City Council will conduct a public hearing on the proposed Fiscal Year City property tax levy as follows:
Regular Taxable Valuation
Emergency
Police & Fire Retirement
FICA & IPERS
www.cityofdubuque.org
Tax Levies:
Regular General
Contract for Use of Bridge
Opr & Maint Publicly Owned Transit
Rent, Ins. Maint. Of Non-Owned Civ. Ctr.
**Budget year effective property tax rate is the rate that would be assessed for these levies if the dollars requested is not changed in the coming budge tyear
Increase in liability and property insurance, and employee wage increases.
https://www.facebook.com/CityofDubuque/ https://twitter.com/CityofDubuque
Meeting Date: 2/20/2023 Meeting Time: 06:30 PM Meeting Location: City Council Chambers, 350 W 6th St. and Virtual
At the public hearing any resident or taxpayer may present objections to, or arguments in favor of the proposed tax levy. After adoption of the proposed tax levy, the
City Council will publish notice and hold a hearing on the proposed city budget.
City Website (if available)City Telephone Number
563-589-4322
Other Employee Benefits
Total Tax Levy
Tax Rate
Explanation of significant increases in the budget:
Opr & Maint of City-Owned Civic Center
Planning a Sanitary Disposal Project
Liability, Property & Self-Insurance Costs
NOTICE OF PUBLIC HEARING -CITY OF DUBUQUE - PROPOSED PROPERTY TAX LEVY
Fiscal Year July 1, 2023 -June 30, 2024
The City Council will conduct a public hearing on the proposed Fiscal Year City property tax levy as follows:
Meeting Date: 2/20/2023 Meeting Time: 06:30 PM Meeting Location: City Council Chambers, 350 W 6th St. and Virtual
At the public hearing any resident or taxpayer may present objections to, or arguments in favor of the proposed tax levy. After adoption of the proposed tax levy, the
City Council will publish notice and hold a hearing on the proposed city budget.
City Website (if available) City Telephone Number
www.cityofdubuque.org 563-589-4322
Current Year Certified Budget Year Effective Budget Year Proposed Maximum Annual
Property Tax 2022-2023 Property Tax 2023 - 2024 Property Tax 2023 - 2024 % CHG
RegularTaxable Valuation 2,695,861,021 2,682,829,520 2,682,829,520
Tax Levies:
Regular General $21,836,474 $21,836,474 $21,730,919
Contract for Use of Bridge $0 $0 $0
Opr& Maint Publicly Owned Transit $1,571,981 $1,571,981 $1,579,811
Rent, Ins. Maint. Of Non-Owned Civ. Ctr. $0 $0 $0
Opr& Maint of City-Owned Civic Center $0 $0 $0
Planning a Sanitary Disposal Project $0 $0 $0
Liability, Property& Self-Insurance Costs $490,975 $490,975 $573,461
Support of Local Emer. Mgmt. Commission $0 $0 $0
Emergency $0 $0 $0
Police & Fire Retirement $0 $0 $0
FICA& IPERS $2,237,236 $2,237,236 $2,437,410
Other Employee Benefits $0 $0 $0
Total Tax Levy $26,136,666 $26,136,666 $26,321,601 0.71%
Tax Rate $9.69511 $9.74220 $9.81113
Explanation of significant increases in the budget:
Increase in liability and property insurance, and employee wage increases.
If applicable, the above notice also available online at:
https://www.facebook.com/CityofDubuque/ https://twitter.com/CityofDubuque
*Total city tax rate will also include voted general fund levy, debt service levy, and capital improvement reserve levy
**Budget year effective property tax rate is the rate that would be assessed for these levies if the dollars requested is not changed in the coming budge tyear
� oz �
_ DUBUQUE CITY COUNCIL
2024
� ` � � � �, - � ,
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BRAD M. CAVANAGH RIC W.IONES DAVID T.RESNICK SUSAN R. FARBER LAURA 1. ROUSSELL DANNY C.SPRANK KATY A.WETHAL
MAYOR AT-LARGE AT-LARGE 1ST WARD 2ND WARD 3RD WARD 4TH WARD
• � �
� � .
• � - - �
, � Five-Year Goals
• � � • • � 2022-2027
, , •
• . . .
• � ' ' � • � • � • 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
�, � y Connected Community:
� � � Equitable Transportation, Technology Infrastructure, and Mobility
�� .��
�; ✓�,��� , �, . �� .
���,f,�,�� � ,�. ;' �•e�.
AMr l�'r 4�
2036 Vision Statement
Dubuque 2036 is a sustainable and resilient city, 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.
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.
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Policy Agenda
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.
1 1 � . . ' . - 1 1 � . ' . -
• Air Service Future Strategy and Action Plan • Catfish Creel< Sanitary Sewer Project: Debt
Policy Direction, Phasing, and Funding
• Chaplain Schmitt Island Master Plan
Implementation • Central Avenue Revitalization Plan: Adoption,
Direction, and City Actions
• City Workforce Retention and Attraction:
Direction and Funding • Five Flags: Options, Funding Mechanism,
Direction, and Next Steps
• Climate Action Plan Implementation
• Housing Incentive Policy: Review and
• Comprehensive Fire Stations Locations: Direction
Study, Report, Direction, and Funding
• Poverty Prevention and Reduction Plan
• Street Program: Direction and Funding Implementation
• Sutton Pool Stalfing and Operational Needs:
Future Direction and Funding
. - - . . . . . . - - - . . � � � � • � . .
� • ' ■ ' • • • • • • • • • • - - • • • - - • • • -
• • • • • • • - • • • • - • • • - •
Management in progress are
items that are underway and budgeted. �a�' �om��
Staff is implementing and providing Management in Progress
updates to City Council. • Fieltl of Dreams Statlium:Next Steps for City
• Industrial Park Development
MdJOf pYOJeCtS are projects that a.West McFadden/Graf Site Infrastructure
b.Crossroads Industrial Park Infrastructure
are underway and budgeted.Staff is . Minority-,Women-,Disabled-,and LGBT-Owned Business Enterprises
implementing and providing updates to (MWDBE) Business Support(including diverse suppliers)
City Council. • MWDBE Procurement Policy, Process Revision and Recruitment
• River Cruise Infrastructure antl Initial Cruise
,
-�_ � x,. �. ,�
`y (Continued on page 4)
Management in Progress Management in Progress
• 911 Center Accreditation • Bee Branch Greenway Operations and Maintenance
• Comprehensive Police Transparency Annual Report • Bee Branch Basin Pump Replacement
• Emergency Communication Transfer to Dubuque County: Policy • Lead and Copper Pipe Rule Compliance Water Sampling and Testing
Direction and City Actions • Pollinator Habitat in Park System
• Traffic and Security Cameras Deployment • Sewer System Infrastructure Asset Master Plan
• Equitable Fines and Fees Reform • Water and Resource Recovery Center:Nutrient Trading
• Fire Department Culture Action Plan • Water Plant and Distribution Systems Condition Assessment/Master Plan
• Fire Department Recruitment and Staffing
• National Incident Management System (NIMS) Development and Major Projects
Training:Mayor/City Council and Management Team Implementation • Water Department Supervisory Control and Data Acquisition (SCADA)
• Police Department Recruitment antl Staffing System Overhaul
• Water Lines Extension—Southwest Arterial
e Ne �
Management in Progress rshi�
• Emerald Ash Borer Damage:Update Report&Funding Management in Progress
• Historic Millwork District:Next Steps • AmeriCorps Support of Gratle-Level Reading Initiative
• Multicultural Family Center Youth Programs Expansion • Boards/Commissions Recruitment Plan
• Neighborhood Associations Process/Guidelines: Development • City Life Program Offered in Spanish
• Unifietl Development Code Update • Homeless Shelter for Men with Chiltlren:Construction Completion
Major Projects
• Hendrick's Feed Site Parking Ramp ���erse Arts, Culture, Parks, and
...,...,.�:�r �.....,....:..�,..,..,. .,.�., n...�:.,:�:....
Financially-Responsible, High
Management in Progress
• Arts and Culture Master Plan Implementation
)rganizatior� • Arts Operating Grants Update Report
Management in Progress • Comprehensive Parks Master Plan
• Americans with Disabilities Act(ADA)Compliance Transition Report . Dubuque Renaissance BIPOC Arts Initiative
• Cartegraph Operations Management Software System Asset . Grantl River Center Management Agreement
Management System
• City Facilities Security Short-Term Action Plan:Access Codes Major Projects
• City Legislative Lobbying/Advocacy Agenda 2022 • Comiskey Park Upgrade Project:Phase 1 Construction
• City Plan and Performance Tracking Software and Reporting Tool • Eagle Valley Subdivision Park:Construction
• Digital Signatures Policy • English Ritlge Subtlivision Park:Construction
• Downtown City Facilities/Workspace Analysis and Plan • Five Flags Short-Term Improvements:Roof and HVAC Stabilization
• Enterprise Resource Planning(ERP)Software Implementation • Jackson Park Restrooms:Completion
• Human Resources Motlernization:Two Positions
• Organizational Culture Continuous Improvement
a.Performance Reviews '
b.Exit Interviews Management in Progress
c.Consultant Services&Support • Community Broadband Project:Fiber-to-the-Home
Major Projects • New Buses: Delivery
• Traffic Signal Synchronization/STREETS Program
• Engine House Remodel Project
Major Projects
• East/West Corridor Capacity Improvements
a.University/Pennsylvania Rountlabout: Design
� � � � b.University/Asbury Rountlabout: Design
� � � c. University/Loras Rountlabout:Design
• JFK Road Sidewalks Project:Construction
• • • • - • • • • Julien Dubuque Bridge Fiber Duct Installation
. . . : • .
� � • Northwest Arterial Upgrade(IDOT Partnership)Phase 2:Construction
• Southwest Arterial Intelligent Transportation System (ITS)Project
� ��� �,� • US 151/Wisconsin Britlge Fiber Installation
. � • � ' .
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City Property Tax Rate Comparison
S2o �,s.s�
$16.78 $17.56 $17.83
$16 $14.99 $15.� $15.73 $16.03 ■
Highest-ranked city(Waterloo-$18.97) is
$11 �>>.�s 95% higher than Dubuque
$9.72 $9.83 $9.95
$e � Average of other 10 cities ($14.99) is
54% higher than Dubuque
$4
$0
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City of Dubuque FY2023 - - � • •
Property Tax Rate ' • • - • - •
• $9.7169 per thousand dollars assessed value FY2022 Consolidated
• Decrease of 1.74%from FY2022 Rate of 3�.70847
��� � ��� �
��� �� - -
� i � i
Residential $22.74 more 2.96% increase � � � � - Dubuque
County
Commercial $105.40 less 3.43%decrease �8 �o�a
Industrial $131.28 less 2.88%decrease NICC
Multi-Residential $126.11 less 7.20%decrease 2'9%
Other
.
1.9%
Fiscal Year 2023 City Bud�et
The City's total budget for ' ' '
.
FY2023 is $221,217,069 �,�, , ,
�� � �
The City of Dubuque's Fiscal Year (FY) 2023 budget runs from � �
July 1, 2022, through June 30, 2023. The budget has two , ,
primary components: the operating budget and the capital budget. �
The operating budget includes personnel costs and annual facility
operating costs. It is funded primarily through local property and
sales taxes.
Major Funds . � .
The capital budget funds major improvements to City facilities General Fund $74,704,876 $4,501,410
and infrastructure. The capital budget is supported through Water Fund $8,912,677 $4,826,753
multiple funding sources, including federal and state grants.
Sanitary Sewer Fund $11,918,578 $8,953,440
Stormwater Fund $4,978,442 $5,382,944
Refuse $3,843,571 $543,994
Parking $2,864,506 $85,231
� � �
The general fund is the operating fund for general City departments and their programs/services, such as
public safety, culture & recreation, health & social services, and general government.
How General Fund Money is Spent
� , • , , , ,
Public Safety 4�,7%
Culture & Recreation 18.1%
General Government 14.5%
Public Works � 8.4%
Community & Economic Development 6.2%
Capital Projects 5.4%
Health & Social Services 1.3%
Debt Service 0.4%
Other 3.9%
General Fund Reserve Projections , , , , , , ,
The City maintains a general fund reserve, ,. ,,, . . ,
or working balance,to allow for unforeseen � ;, . . $17,743,471 $17,743,471 $17,743,471 $17,743,471 $17,743,471
expenses that may occur. The goal is to
have at least a 20% reserve. ' � � � �' 22•�8% I 22.34% I 21.90% 21.47% I 21.05%
• • � • •
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*Average household rate based on 6,000 gallons per month at$0.00553 pergallon
�)L fS�
**Monthly rate for majority of Dubuque households based on usage of one single family unit. Stormwater fees are based on l ,t�, „t,u�+�
the amount of impervious ground coverage on a property. Fees collected are only used for stormwater managemen tivities
such as the construction, maintenance and operation of the public stormwater management system. �
��*Average household rate based on 6,000 gallons per month at$0.00790 pergallon. The City e ection an
treatment system operates as a self-supporting enterprise fund which means that it is funded on/y wi evenue from user fees. �
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�� Reduced Fees for Income- _ -: �
rl,���ln Dnc�� �tc ',r�s,
� � � �
�� The City offers income-qualifietl residential customers _ ��� �
a reduction in monthly fees for water, sanitary sewer, ��
refuse collection, and stormwater utilities. Customers . -
must submit an application for consideration. ���
Applications are renewed on an annual basis. - �+
�'`"'�� �cz.
LEARN MORE 1,, �' `, �.
www.cityofdubuque.org/UtilityBilling or 563-589-4144
�iY
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Total Debt (in millions) � ; ' � -�'�� —�
�- ..,tc.�' ■ ..-�� :i"y ■
�s s.k= '��; .. • ��w�
(Adopted FY2023 Budget) d �-.-�-.—. � �'
$sso Debt is being issued each year, but more is being retired than is issued. '' ,f �,a;`- ����" �
,�. , '��I � j _ .I� 1
$295.60 9� _'i � �
$300 ,:,j!Fa'�r �r�r- �r,—�.r�� = a {
'+��,�€. : ' -T.f.7 � _ „��;
$251.50 __—
�� o_�� .�
$zso -
� i��. .���
$zao
$185.60 T � �
$150 ,LI �.
�i=-, � 5��� • - ��
$100 � , �" �,�� '.�+► �.
(FY2023 Adopted) � �� � � —
$50 � ',
��'
$0 �. --
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 �` — ,.R� .
— � -- � � ,
� �_ � _,. ���,�
Statutory Debt Limit Used
(Adopted FY2023 Budget)
�oo�ia o The City of Dubuque's use of debt
JQ/o This chart shows the percentage of statutory debt limit in the can be compared to many average
so°�o Fiscal Year(FY)2023 recommended budget. By FY2027,the
so°ro
City will be at 32%of the statutory debt limit. homeowners who borrow to buy
�oo�o � their home. The City has borrowed
money at low interest rates to
so�io invest in infrastructure. Unlike
5o�ro � 41% the federal government, the City
ao�io 32% does not borrow money to cover
3o°i° operating expenses.
20°�° (FY2023 Adopted)
�o�io
o�ro ii I I • i
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
� . 1 ' � �
Comparison of Statutory Debt Limit Utilized � # Project Description and Amount Outstanding
(FY2021) I 1 Stormwater Improvements $76,527,913
�oo°ro
2 Water&Resource Recovery Center $57,395,000
yo,� 3 Water Improvements $30,069,008
$oo�0 4 Parking Improvements $23,769,184
�oia 62% 61% 5 Downtown TIF Incentives/Improvements $20,177,588
so°i 54% 53% 5�% 50% 6 Sanitary Sewer Improvements $13,301,860
so°ia 41%
aoi 3go�a 7 TIF Rebates/Bonds to Businesses $8,216,815
, � 25% 8 Industrial Park Expansions $6,412,953
30� 20% 19%
20�a 9 Caradco Building lowa Finance
�o�a Authority Loan $3,470,309
oo� 10 Street Impravements* $2,941,387
`cey G�ti� ��� Qoati Q�ay `t�°� y`ti�� ,��i`� �°? `oq`y G``� Tota I �242,283,���
e�o �`oJ+ �aa.e oa�eo `�a �o eF Pp P `�0 o�a
O eaa O� o�'J o�r \ '$162 million has been spent on street improvements from 1997-2021
G �ey'� OJ'0 G
CM028-112122
CITY COUNCIL'S FISCAL YEAR 2024
BUDGET PUBLIC MEETING SCHEDULE
DATE DAY TIME PLACE TOPIC
February 20 Monday 6:30 p.m. Council Budget document presentation to
Chambers City Council at Council Meeting
February 21 Tuesday 6:30 p.m. Council Legal Services
Chambers City Clerk
Public Information Office
Human Resources
City Manager's Office
City Council
Adjournment
February 27 Monday 6:30 p.m. Council Health Services
Chambers Library
Airport
Office of Shared Prosperity
Office of Equity and Human Rights
Finance
Adjournment
March 7 Tuesday 6:30 p.m. Council Housing/Community Development
Chambers Purchase of Services
Planning
Economic Development
Adjournment
March 8 Wednesday 6:30 p.m. Council Parks
Chambers Multicultural Family Center
AmeriCorps
Recreation
Adjournment
March 9 Thursday 6:30 p.m. Council Emergency Management
Chambers Emergency Communications
Police
Fire
Adjournment
March 21 Tuesday 6:30 p.m. Council Information Services
Chambers Water
Water & Resource Recovery
Public Works
Adjournment
March 22 Wednesday 6:30 p.m. Council Five Flags Civic Center
Chambers Grand River Center
Ice Center
Transportation Services
Engineering
Adjournment
March 23 Thursday 6:30 p.m. Council Public Hearing to Adopt FY 2024
Chambers Budget