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Public Hearing for Resolution Establishing Maximum Property Tax Dollars for Fiscal Year 2024_HearingCity of Dubuque City Council Meeting Public Hearings # 01. Copyrighted February 20, 2023 ITEM TITLE: Public Hearing for Resolution Establishing Maximum Property Tax Dollars for Fiscal Year 2024 SUMMARY: Proof of publication on notice of public hearing to consider City Council adopt a resolution approving the Fiscal Year 2024 Maximum Property Tax Dollars as required by Section 384.15A of the Code of Iowa, and City Manager recommending approval. SUGGESTED DISPOSITION: ATTACHMENTS: Description MVM Memo Staff Memo RESOLUTION Approval of the Fiscal Year 2024 Maximum Property Tax Dollars for the affected tax levy total Suggested Disposition: Receive and File; Adopt Resolution(s) FY24 Improvement Package Listing FY24 Budget & Fiscal Policy Guidelines Resolution City Council Public Budget Meeting Schedule Public Input Type City Manager Memo Staff Memo Supporting Documentation Supporting Documentation Resolutions Supporting Documentation Supporting Documentation THE CITY DUOF B TEE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque All -America City IN 2007.2012.2013 2017*2019 SUBJECT: Public Hearing for Resolution Establishing Maximum Property Tax Dollars for Fiscal Year 2024 DATE: February 15, 2023 Chief Financial Officer Jennifer Larson is recommending City Council adopt a resolution approving the Fiscal Year 2024 Maximum Property Tax Dollars as required by Section 384.15A of the Code of Iowa. At this 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% 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%, $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 Averaqe Residential Payment 3.00% $23.75 Average Commercial Payment 8.84%270.61 Averaqe 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 been fully funding the Homestead Tax Credit, the increase would have averaged about +$5.16 a year. 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 revised recommended resolution for maximum property tax dollars in FY2024 is $26,546,601(increased by City Council from the staff recommendation of $26,321,601). The maximum property tax dollars excludes the debt service levy of $304,673. The maximum property tax dollars recommendation is an 1.57% increase as compared to the FY2023 property tax dollars. Since the "total maximum property tax dollars" amount is less than 102% of the current year's property taxes (1.57% excluding the debt service levy), the resolution must pass by a simple majority vote of the City Council. 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 PPI THE C Dubuque DUUB-.'*-TE, AII•America City Mx, M iece on the Mississippi Masterpiece pp 2002 -2013 zo17*�*z019i9 TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Chief Financial Officer SUBJECT: Public Hearing for Resolution Establishing Maximum Property Tax Dollars for Fiscal Year 2024 DATE: February 14, 2023 I am recommending approval of the resolution establishing the Fiscal Year 2024 Maximum Property Tax Dollars. At this 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. Iowa Senate File 634 passed during the 2019 legislative sessions, makes changes to Iowa city and county budgets and taxes for FY2021 and later. Additional steps have been added to the budget approval process: 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. By State law, the budget that begins July 1, 2023 must be adopted by March 31, 2023. The FY2024 budget recommendation funds $688,895 for annually recurring improvement packages funded by property taxes in the General Fund and $691,417 for non -recurring improvement packages funded by FY2024 DRA Distribution. For FY2024 there are $2,997,416 in general fund improvement package requests with a net property tax impact of $2,461,286, with $1,380,312 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%, $270.61) and a increase for industrial (6.62%, $299.27). Property Tax Rate % Change 1.96% $ Change $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 1 6.62%1 $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 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. IF 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: Fiscal Year FY 2024 City Tax Rate $9.9075 % Change in Tax Rate 1.96% FY 2025 $10.3898 4.87% FY 2026 $10.7021 3.01 % FY 2027 $10.9399 2.22% FY 2028 $11.3558 3.80% Fiscal Year FY 2023 "City" Property Tax Askings $26,205,437 % Changein Tax Askings Residential % Impact on Avg. Property Residential $ Impact oLnAvg. Propert FY 2024 $26,623,475 +1.60% +3.00% +$23.75 FY 2025 $28,628,198 +7.53% +4.87% +$39.70 FY 2026 $30,078,183 +5.06% +3.01 % +$25.71 FY 2027 $31,362,004 1 +4.27% +2.22% +$19.58 FY 2028 $33,204,835 1 +5.88% +3.80% +$34.23 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 Iowa 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. 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. 3 For the proposed Fiscal Year 2024, Dubuque has the SECOND LOWEST property tax rate as compared to the eleven largest cities in the state. The highest rate (Waterloo (FY23)) is 91.49% higher than Dubuque's rate, and the average is 51.26% 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 Iowa Cities Rank 11 city Waterloo (FY23) Tax Rate $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 Iowa City (FY23) $15.63 5 Sioux City (FY23) $15.42 4 West Des Moines (FY23) $11.79 3 Ames (FY23) $9.96 2 Dubuque (FY24) $9.91 1 Ankeny (FY23) $9.90 AVERAGE w/o Dubuque $14.99 Significant issues impacting the FY 2024 budget include the following: 1. State Funded Backfill on Commercial and Industrial Property Tax a. Iowa 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 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. 12 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 Iowa Department of Revenue will notify the county auditors of prorated percentage by September 30t". 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. 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. 3. Multi -residential property class combined with Residential in Fiscal Year 2024. 5 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 Iowa 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 Iowa 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 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%. n 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. 7 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 Iowa. In Fiscal Year 2015, the City of Dubuque used 90% 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% 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. 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% 87% 82% 79% 79% o 72% 74 /o ° 75% 87% % 60% 70 /0 66% 66% 62% 53% 50% 47% 43% 43% 41% 41% 40% 37% o 34 /0 30% 0 26 /0 23% o 25% 20 /0 17% TI TI �1 7'I TI �1 TI 71 7'I TI �1 TI �1 TI �1 7'I TI �1 CA V 00 to O N W A G1 V 00 W O s N Pvlr Arinn+o,l 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 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 Iowa for Fiscal Year 2022 with a population over 50,000: Fiscal Year 2022 Legal Debt Limit Comparison for Eleven Largest Iowa Cities Rank City Legal Debt Limit (5%) Statutory Debt Outstanding Percentage of Legal Debt Limit Utilized 11 Des Moines $ 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 Iowa City $ 350,967,316 $ 65,775,000 18.74 Average w/o Dubuque 44.67 Percent of Legal Debt Limit Utilized 100% 75% 50% 31.02% 24.10% 25% 18.74% 19.11 % n% 51.15% 54.02% 52.33% 44.67% 40.75% 0 O CIO 81.33% 60.40% 54.47% 5`o e5� O 9 Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in Iowa with a population over 50,000 and Dubuque is slightly above the average of the other Cities. Total Debt (In Millions) $324 $302.3 $297 $290.1 $282.0 $279.9 $295.5 $270 $285.7 X;i" $274.7.7 $257.9 $259.3 $258.8 $243 236.1 1.4 212.9 $216 $226.2 $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 "AX rated cities. May 2021, Moody's Investor Services upgraded the City's Water Enterprise's outstanding revenue bonds from Al to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. 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. 10 Fund Reserve Fiscal Year (As percent of General • ••• revenues) Calculation 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. FY 2020 31.24% Increase due to freezing vacant positions and most capital due to the projects pandemic. Increase due to American Rescue Plan Act funds received million), frozen positions and capital projects through Feb FY 2021 40.72% 2021.3.2 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. 50 Fund Reserve as a Percent of General Fund Revenue 49.16% 40 40.72°0 113 v 30 o a 29.06% 1.24% 25.560%/o 20 ° o 9% 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. 11 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 $35,459,518. The general fund reserve balance on an accrual basis exceeds 22% in FY 2023, which is the margin of error used to ensure the City always has a general fund reserve of at least 20% as computed by Moody's Investors Service. In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve level in Fiscal Year 2022. In fact, the City met the 20% reserve requirement in FY 2017, five years ahead of schedule and has sustained a greater than 20% reserve. Contribution$— 0- FY2025 FY2026 FY2027 FY2028 City's Spendable General Fund Cash Reserve Fund $41,259,518 $35,459,518 $29,659,518 $23,859,518 $18,059,518 $18,059,518 $18,059,518 Balance % of Projected Revenue (Moody's) 49.16% 50.18% 41.97% 33.76% 25.56% 25.56% 25.56% 9. The Municipal Fire and Police Retirement System of Iowa 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 $48,422 for Police and $75,656 for Fire or a total of $27,234). 10. 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 $1,234,458 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%. 12. The decrease in property tax support for Transit from FY 2023 to FY 2024 is $91,874, 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 ($125,303); 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.org/ 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: htp://expenses.cityofdubuque.org/ During Fiscal Year 2017, an additional module was added to the open data platform which included an interactive checkbook which will allow residents to view the City's payments to vendors. The final step will be adding performance measures to the open data platform to allow residents to view outcomes of the services provided by the City. Balancing Act URL:http://bit.ly/fy22budgetsim During Fiscal Year 2019, the City of Dubuque launched a new interactive budget simulation tool called Balancing Act. The online simulation invites community members to learn about the City's budget process and submit their own version of a balanced budget under the same constraints faced by City Council, respond to high -priority budget input questions, and leave comments. Taxpayer Receipt URL: http://bit.ly/taxpayerreceipt During Fiscal Year 2019, the City launched an online application which allows users to generate an estimate of how their tax dollars are spent. The tool uses data inputted by the user such as income, age, taxable value of home, and percentage of goods purchased within City limits. The resulting customized receipt demonstrates an estimate of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other city services. This tool is in support of the City Council goal of a financially responsible and high-performance organization and addresses a Council -identified outcome of providing opportunities for residents to engage in City governance and enhance transparency of City decision -making. There will be 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 revised recommended resolution for maximum property tax dollars in FY2024 is $26,546,601(increased by City Council from the staff recommendation of $26,321,601). The maximum property tax dollars excludes the debt service levy of $304,673. The maximum property tax dollars recommendation is an 1.57% increase as compared to the FY2023 property tax dollars. Since the "total maximum property tax dollars" amount is less than 102% of the current year's 14 property taxes (1.57% excluding the debt service levy), the resolution must pass by a simple majority vote of the City Council. At this 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 approving the maximum property tax dollars as required by Section 384.15A of the Code of Iowa. 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 $ 7,123 $ 3,877 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 Manager's Office A High Performing Government (HPG) & Innovation initiative, with a Director of Innovation (or R $ 150,000 $ 97,170 $ 52,830 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 $ 2,750 $ 1,495 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 $ 1,942 $ 1,058 Y include one annual training for the Analyst for a program such as Dale Camegie public speaking or the ICMA high performing government academy, plus a small pool of funds to attend other grant -related webinars or trainings. Economic Development Administer the Cultural & Entertainment District (CED) program to the current contracted R $ 4,581 $ 4,581 Y 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. Request is for $8,500. Recommendation is a 5% increase ($4,581). Economic Development Additional $100,000 to sponsor 20 Dream Center students for an entire year of programming. R $ 3,000 $ 3,000 Y The Dream Center program provides students with year-round holistic services that include continued School Day Curriculum, Healthy Meals, Skill/Character Development, and more. Recommendation is a 5% increase ($3,000). 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 Economic Development Additional $100,000 in funding to the Fountain of Youth. The funding will be a continuation of R $ 3,000 $ 3,000 Y the Partners in Change and Real Talk programming. This funding will assist with providing services to the low income populations of Dubuque and the surrounding communities. Recommendation is a 5% increase ($3.000). Economic Development Funding to the St. Mark's Youth Enrichment Program. Funds would support St. Mark's after R $ 50,000 $ 50,000 N school programs offered during the 2023-2024 academic year in Dubuque for students attending Audubon, Lincoln, and Marshall Elementary. These programs fill a gap for working families and students that are struggling with academic and social emotional skills. 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 Iowa 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, OE-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. Eliminates 0.455 FTE of part-time dispatchers. Emergency An additional full-time dispatcher (1.0 FTE, OE-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. 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 Emergency An additional full-time dispatcher (1.0 FTE, OE-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, OE-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, OE-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 position. 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 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. Engineering All-weather outerwear 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 $ 94,678 $ — $ 94,678 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 $ 94,678 $ — $ 94,678 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. 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 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. Health Housing Human Resources Human Resources Human Resources Human Resources Information Services 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. Full -Time Combination Inspector for Plan Review, permit approvals and inspections across all R $ 35,154 $ 35,154 Y trades, is needed based on the number of permits and inspections. Eliminates a part-time inspector II position that was specific to ADA inspections, and enforcement for homeowner violations of the International Property Maintenance Code. Hire outside trainers and speakers for employees on topics such as diversity/equity/inclusion, R $ 32,480 $ 21,031 $ 11,449 Y collaboration and impact, and customer service and communication Two training and facilitation teams currently supporting the work of the Development and R $ 4,063 $ 2,631 $ 1,432 Y Learning Manager —the High Performing Government Ambassadors and the Intercultural Facilitators. Funding would be utilized to train up to four new team members annually to become trained trainers. Incentive program for trainers/facilitators who provide employee training for purposes of new R $ 11,241 $ 7,280 $ 3,961 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 Office 365/technology-related training for employees. The City has historically contracted with R $ 13,000 $ 8,418 $ 4,582 Y the vendor "Get Control University" to provide this specific type of training, and that 3-year contract expires in FY 2023. Adding a part-time (0.5 FTE, GE-25) Secretary/Administrative Assistant. Due to the growth in R $ 23,683 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. $ 23,683 N 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. 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 Information Services An online course -based learning system specifically geared to advanced technical training R $ 1,200 $ 1,200 Y and support for IT professionals. The package proposes a course -based solution with a repository of thousands of structured learning 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. 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 Center Addition of 910 hours of site supervision (temp/seasonal) to the Multicultural Family Center by R $ 21,183 $ 21,183 Y 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. R $ 30,000 $ 30,000 N In recent years, native plants have been planted in the Bee Branch Creek Greenway, Valentine Park, Four Mounds Park, Eagle Point Park, Creek Wood Park, 32nd Street Detention Basin, and 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. 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 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. 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 Prosperity Turn an existing part-time Administrative position (.66 FTE, GE-25) into a full-time role (1.00 R $ 41,814 $ 41,814 N & Neighborhood Support FTE, GE-25) to meet the needs of a growing department, such as coordinate and manage 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. 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 Planning Services Sending two Assistant Planners or the Assistant Planner and the Planning Technician to the R $ 2,000 $ 1,127 $ 873 Y Iowa American Planning Association (APA) Conference. Currently, the Planning Services Manager and Associate Planner are budgeted to attend the Iowa APA Conference. This will allow a rotation of an additional Planning staff member to attend. Planning Services Planning Services Manager to attend the Housing Iowa Conference (HIC). The HIC is a R $ 1,000 $ 565 $ 435 Y celebration of the housing industry's leading role in thriving Iowa 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 Iowa Bicycle Summit. The Planning Services R $ 319 $ 180 $ 139 Y Department 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 Iowa 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 $ 192 $ 148 Y projects that the Planning Services Department is directly involved. Planning Services A membership to the Chamber of Commerce's Young Professionals Dubuque (YPD) R $ 60 $ 34 $ 26 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- vear grant 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. 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 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 $ 31,875 $ 24,625 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 GE-30) R $ 75,825 $ 31,847 $ 43,978 N Public Information Office GIS Office conference attendance to cover the increased costs of conference attendance and R $ 3,000 $ 1,692 $ 1,308 Y allow the GIS Coordinator to attend a regional conference every year. Public Works A Public Works Data Scientist (1.00 FTE, GE-37). As the Public Works Department R $ — $ — $ — Y 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 This improvement level decision package provides funds to send two (2) administrative staff R $ 9,000 $ 9,000 N to 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 $2,226,494 $476,390 $1,750,104 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 NON -RECURRING DECISION PACKAGE COSTS City Clerk's Office Anew agenda management solution for City Council agendas if the City's current N $ 9,000 $ 5,827 $ 3,173 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 $ 2,090 $ 1,135 Y City Clerk's Office Up to two uniform shirts with the City of Dubuque logo for all members of the City N $ 280 $ 181 $ 99 Y Clerk's Office. City Manager's Office 50% by 2030 Community Climate Action and Resiliency Plan. Research and N $ 25,000 $ 16,188 $ 8,812 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 $ 12,950 $ 7,050 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 $ 16,188 $ 8,812 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. 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 City Manager's Office Provide and replace hybrid work equipment for the Executive Assistant and N $ 6,425 $ 4,160 $ 2,265 Y Administrative Assistant in the City Manager's Office. 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 N 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 Department's planned classroom and summer job 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. 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 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. 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 N Human Rights Assistant in Equity & Human Rights 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 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. 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 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 Iowa 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 Y 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. 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. 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 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 Planning Services Planning Services City of Dubuque shirts. The shirts consist of polos and long sleeve shirts with an N $ 330 $ 186 $ 144 Y embroidered "City of Dubuque Masterpiece on the Mississippi Logo" and the text "Planning Services Department" Planning Technician's enrollment in Leadership Dubuque. Leadership Dubuque N $ 1,495 $ 843 $ 652 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 Technician's enrollement in Dale Carnegie Training. N $ 1,995 $ 1,127 $ 868 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 Public Works iPad/Accessories, Computer & Monitors, iPhone for Data Scientist N $ 4,500 Five (5) additional tablets and cases which would allow field staff to enter their N $ 4,600 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 $ 4,500 Y $ 4,600 Y TOTAL GENERAL FUND NON -RECURRING PACKAGES 770,922 59,740 711,182 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY TAX FUNDS Fiscal Year 2024 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No MEDIA SERVICES FUND 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 $ — S 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 CONSTRUCTION FUND (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 Construction Fund (20%) 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) Y 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 ENTERPRISE FUNDS Parking Fund Subtotal Parking Fund Stormwater Fund SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY TAX FUNDS Fiscal Year 2024 Department Description R/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 S 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 S 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 Department's planned classroom and summer job 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 Engineering architecture/engineering/construction Feld 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 Engineering Metal detectors that are used on a regular basis by sixteen department staff members. N $ 1,500 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 R R R R R R R $ 5,639 Y $ 1,500 Y $ 58,791 N Subtotal Stormwater Fund $ 83,579 $ — $ 83,579 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY TAX FUNDS Fiscal Year 2024 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No 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 S 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, GE-33) 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, OE-09). As the distribution system continues to grow, the need for routine operation and maintenance Water grows also. One position is recommended. R $ 79,201 $ 79,201 Y N $ 1,730 $ 1,730 Y Elimination of a Water Meter Repair Worker II (-1.0 FTE, OE-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 $ 8,681 $ 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 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 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY TAX FUNDS Fiscal Year 2024 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No Subtotal Water Fund $ 119,814 $ — $ 197,851 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 Y 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 Road pavement sensors and software that would provide information on pavement 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 A Youth AmeriCorps Program position to administer the Engineering Department's planned classroom and summer job 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 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 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY TAX FUNDS Fiscal Year 2024 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No 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 Engineering Metal detectors that are used on a regular basis by sixteen department staff members. N $ 1,500 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 N $ 3,570 S 5,639 Y $ 1,500 Y $ 101,788 Y $ 3,570 Y 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 $ — $ — Y 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. 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 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY TAX FUNDS Fiscal Year 2024 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No A part-time intern position in the Public Works Department's 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 more Public Works 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 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 Y 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 it's service life and provide Y Public Works additional portable units to be used near the open face area at the landfill. R $ 85,000 $ 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 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 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY TAX FUNDS Fiscal Year 2024 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No 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 generation N $ 80,000 $ 80,000 R $ 5,600 $ 5,600 Y Subtotal Landfill Fund $ 250,763 $ — $ 250,763 TOTAL NON -PROPERTY TAX FUND PACKAGES $ 802,309 $ — $ 841,327 TOTAL IMPROVEMENT PACKAGES ALL FUNDS #REF! #REF! #REF! FY 2024 Budget & Fiscal Policy Guidelines Page 1 CITY OF DUBUQUE BUDGET & FISCAL POLICY GUIDELINES FISCAL 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 UUIUtLINL 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 GUIUt:Ur% 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 GUIDELIN 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 GUIDELINE 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 GUIDELINE 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 GUIDELINE 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 GUIDELINP 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. GUIDELINE 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 GUIDELINE 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: .. ininq Unit Teamsters Local Union No. 120 Contract Expires June 30 2025 Teamsters Local Union No. 120 Bus Operators June 30 2025 Dubuque Professional Firefighters Association June 30 2024 Dubuque Police Protective Association June 30 2024 International Union of Operating Engineers June 30 2024 FY 2024 Budget & Fiscal Policy Guidelines Page 5 GUIDELINE 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 GUIDELINE 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. FY 2024 Budget & Fiscal Policy Guidelines Page 6 L. BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES GUIDELINE 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 DISCUSSION 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. GUIDELINE 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. FY 2024 Budget & Fiscal Policy Guidelines Page 7 Ad 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% 15.2% Therapeutic & After School 83.8% 76.0% 30.4% 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% 102.7% Port of Dubuque Marina 80.6% 89.4% 63.3% 65.3% Park Division 25.8% 18.9% 15.2% 15.0% Library 1.8% 1.4% 1.3% 1.3% Airport 103.4% 101.1 % 91.3% 93.5% Building Inspections 157.7% 144.7% 94.3% 95.1% Planning Services 63.4% 53.7% 45.2% 58.5% Health Food/Environmental Inspections 73.8% 71.8% 52.0% 39.4% 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% 58.9% N. ADMINISTRATIVE OVERHEAD RECHARGES DISCUSSIC 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 $7,010,756 in administrative overhead using the recharge method adopted in Fiscal Year 2013 and revised in Fiscal Year 2018. FY 2024 Budget & Fiscal Policy Guidelines Page 8 GUIDELINE 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 Overhead Split (Hof including Engineering) 14.6i°Jb ■ Wafer ■ Sewer Stormwaier ■ Refuse ■ Parkin g ■ Landfill ■ General Fund Engineering Administration & Project Management ■ Genera I Fund ■ Wafer Sewer ■ Stormwaier FY 2024 Budget & Fiscal Policy Guidelines Page 9 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% 75% 67% 57% 50% 11 9% 25% d FY24 100% 100% 93% 30% 6% 16% _ . 1 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. GUIDELINE 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 Page 10 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 "AX rated cities. In May 2021, Moody's Investor Services upgraded the City's Water Enterprise's outstanding revenue bonds from Al to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. 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%, 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 Page 11 Fiscal Year Fund Reserve (As % of General Moody's FY 2014 Fund revenues) 14.87% Calculation 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 Page 12 GUIDELINE 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% reserve. General Fund Reserve Projections: FY2017 $600,000 $14,172,661 20.09 % a FY2018 $1,700,000 $16,460,491 23.81 %1; 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 Page 13 GUIDELINE 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. GUIDELINE 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 I. ASSUMPTIONS - RESOURCES 1. Local, Federal and State Resources a. Cash Balance. Unencumbered funds or cash balances of $200,000 will be available in FY 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 Iowa 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 Page 14 The following chart shows the past four years of actual sales tax funds and projected FY 2024 for the General Fund: Sales Tax Funds Or PY Q4 FY 020 $ 355,027 FY 2021 $ 380,549 FY 2022 $ 419,551 FY 2023 $ 475,037 FY 2024 $ 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 Quarter 4 $ 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 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. 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% FY2021 Actual $5,072,813 $1,110,817 28% FY 2020 Actual $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% 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 Page 16 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% FY 2021 100% FY 2022 100% FY 2023 100% FY 2024 100% —% 10% 20% 30% 40% 50% Operating 60% 70% PM Capital M M 0% 80% 90% 100% 110% 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 Iowa 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 Iowa 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: Fiscal Year 2024 State Backfill Reduction -$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 Iowa. The average commercial and industrial properties ($432,475 Commercial / $599,500 Industrial) received a Business Property Tax Credit from the State of Iowa 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 Iowa Department of Revenue will notify the county auditors of prorated percentage by September 301h. 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 Iowa will not backfill property tax loss from the rollback on multi -residential property. The rollback will occur as follows - Fiscal Year Rollback % Annual Loss of Tax Revenue 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 Totalf $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. Iowa Legislative Change to Fiscal Year 2024 Residential Rollback Calculation At the time residential rollback was calculated by the Iowa 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 *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. Iowa Legislative Change to Fiscal Year 2024 Residential Rollback Calculation At the time residential rollback was calculated by the Iowa 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 Iowa 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: Property Residential Includes Multi -Residential +8.74 % Commercial 5.01 % Industrial +3.11 % Multi -Residential (Reported with Residential 100.00 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 Iowa sales tax. Franchise fee rebates are provided at the same exemption percent as the State of Iowa 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. II. ASSUMPTIONS — REQUIREMENTS a. Pension Systems. • The Municipal Fire and Police Retirement System of Iowa (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 $48,422 for Police and $75,656 for Fire or a total of $27,234). The Iowa 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 $1,234,458 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 11.04% 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 $91,874, 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 ($125,303); 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 Fiscal Year 2024 Projection Amount $1,614,811 % Change 3.53 % 2023 Budget $1,673,923 4.54 % 2022 Actual $1,601,290 2.09 % 2021 Actual $1,635,441 4.94 % 2020 Actual $1,558,460 0.82 % 2019Actual $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 Downtown TIF. In FY 2025 and beyond Greater Dubuque Development Corporation will be paid from the Greater Downtown TIF and Dubuque Industrial Center West land sales. FY 2024 Budget & Fiscal Policy Guidelines Page 26 4ROPERTY TAX IMPACT The recommended Fiscal Year 2024 property tax rate increased 1.96% and will have the following impact: 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: 6.00% 3.00% (3.00)% (6.00)% (9.00)% (12.00)% (15.00)% (18.00)% Historical Impact on Tax Askings & Average Residential Property Tax Rates f % Change in Tax Rate A City Tax Rate I�a000�NM"tLO(Dr-WO0rNM�LO(Or-000O NM�LnCOrl-WM0�NM"t 6� 0 M 0 0 0 0 0 O 0 M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O r----- r r CV 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 LL $16.00 $14.00 $12.00 $10.00 11 $6.00 $4.00 $2.00 FY 2024 Budget & Fiscal Policy Guidelines Page 28 Historical City tax rates and % change in tax rate: Fiscal Year FY 1987 City Tax Rate 14.5819 % Change in Tax Rate 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% 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% FY 2016 11.0259 0.00% 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 6.40% $12.00 4.80% 3.20% 1.60% FY 2024 FY 2025 FY 2026 % Change in Tax Rate Projected City tax rates and % change in tax rate*: FY 2027 FY 2028 City Tax Rate Fiscal Year FY 2024 City Tax Rate 9.9075 % Change in Tax Rate 1.96% FY 2025 10.3898 4.87% FY 2026 10.7021 3.01 % FY 2027 10.9399 2.22% FY 2028 11.3558 3.80% $9.00 $6.00 $3.00 *Significantly impacted by the budget projection that the State of Iowa 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 - Historical Actual Change if HTC 00% Funded Dollar Change -$58.39 City Tax Calculation $453.99 Percent ChangeActual -11.40% FY 1989 "City" Property Tax FY 1990 "City" Property Tax $449.94 -0.89% -$4.04 FY 1991* "City" Property Tax* $466.92 +3.77% $16.98 FY 1992 "City" Property Tax $483.63 +3.58% $16.71 FY 1993* "City" Property Tax* $508.73 +5.19% $25.10 FY 1994 "City" Property Tax $510.40 +0.33% $1.51 FY 1995* "City" Property Tax* $522.65 +2.40% $12.41 FY 1996 "City" Property Tax $518.10 -0.87% -$4.54 FY 1997* "City" Property Tax* $515.91 -0.42% -$2.19 FY 1998 "City" Property Tax $512.25 -0.71 % -$3.66 FY 1999 "City" Property Tax* $512.25 0.00% $0.00 FY 2000 "City" Property Tax $511.38 -0.17% -$0.87 FY 2001 "City" Property Tax $511.38 0.00% $0.00 FY 2002 "City" Property Tax $511.38 0.00% $0.00 FY 2003 "City" Property Tax* $485.79 -5.00% -$25.58 FY 2004 "City" Property Tax $485.79 0.00% $0.00 With Homestead Ad'. $493.26 +1.54% $7.46 FY 2005 "City" Property Tax* $485.93 +0.03% $0.14 With Homestead Ad'.* $495.21 +0.40% $1.95 FY 2006 "City" Property Tax 1 $494.27 +1.72% $8.34 With Homestead Adj. 1 $504.62 +1.90% $9.41 FY 2007 "City" Property Tax* 2 $485.79 -1.72% -$8.48 With Homestead Adj.* $496.93 -1.52% -$7.69 FY 2008 "City" Property Tax $496.93 0.00% $0.00 With Homestead Ad'. $510.45 +2.72% $13.52 FY 2009 "City" Property Tax $524.53 +2.76% $14.08 With Homestead Ad'. $538.07 +5.41 % $27.62 FY 2010 "City" Property Tax $538.07 0.00% $0.00 With Homestead Adj. $550.97 +2.40% $12.90 FY 2011 "City" Property Tax $564.59 +2.47% $13.62 With Homestead Adj. 3 $582.10 +5.65% $31.13 FY 2012 "City" Property 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 -Historical As FY 2015 "City" Property Tax City Tax Calculation $728.48 Actual Percent ChangeActual +3.23% Change if HTC 100% Funded Dollar Change $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 1 "City" Property Tax $791.82 +2.96% +$22.74 Average FY1989-FY2023 with Homestead Adj. +1.31 % Average FY2019-FY2023 with Homestead Adj. +0.95% Average FY1989-FY2023 without Homestead Adj. +0.79% +$7.98 +$7.22 +$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: IPROJECTIONDOLLAR FY 2024 CALCULATIO "City" Property Tax $815.57 +3.00% +$23.75 FY 2025 (4) "City" Property Tax $855.27 +4.87% +$39.70 FY 2026 "City" Property Tax $880.98 +3.01 % +$25.71 FY 2027 "City" Property Tax $900.56 +2.22% +$19.58 FY 2028 "City" Property Tax $934.79 +3.80% +$34.23 * Denotes year of State -issued equalization orders. ^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%. (1) The FY 2006 property tax calculation considers the 6.2% valuation increase for the average residential homeowner as determined by the reappraisal. (2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006. (3) The City adopted a budget in FY 2011 and 2012 that provided no increase to the average homeowner. The State of Iowa 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 Iowa 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 Iowa Homestead Property Tax Credit Funded by the State of Iowa 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% 100% 2016 2017 100% 2018 100% 2019 100% 2020 100% 100% 2021 2022 100% 2023 100% 2024 100% % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1109/c Percent Funded FY 2024 Budget & Fiscal Policy Guidelines Page 33 IMPACT ON COMMERCIAL PROPERTY - EXAMPLE •a $2,106.42 - • - 1 • - -$384.19 -15.43% FY 9989 "City" Property Tax FY 1990 "City" Property Tax $2,086.50 -$19.92 -0.95% FY 1991 "City" Property Tax $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% 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: PROJECTEDDOLLAR FY 2024 CALCULA "City" Property Tax •PROPERTY CREDIT $3,330.95 TAX (111) $0.00 PERCENT CHANGE +$270.61 CHANGE +8.847/. FY 2025 "City" Property Tax $3,493.09 $0.00 +$162.14 +4.87% FY 2026 "City" Property Tax $3,598.09 $0.00 +$105.00 +3.01 % FY 2027 "City" Property Tax $3,678.03 $0.00 +$79.94 +2.22% FY 2028 I "City" Property Tax 1 $3,817.86 $0.00 +$139.83 +3.80% (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 Iowa. 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 Ir CITY TAX CALCULATION BUSINESS PROPERTYDOLLAR ACTUAL - O- 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% 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% FY 1994 "City" Property Tax $6,302.95 +$53.50 +0.86% FY 1995 "City" Property Tax $5,891.05 -$411.90 -6.54% FY 1996 "City" Property Tax $5,891.05 $0.00 0.00% FY 1997 "City" Property Tax $5,690.75 -$200.30 -3.40% FY 1998 "City" Property Tax $5,700.56 +$9.81 +0.17% FY 1999 "City" Property Tax $5,536.70 -$163.86 -2.87% FY 2000 "City" Property Tax $5,358.00 -$178.70 -3.23% FY 2001 1 "City" Property Tax $5,533.00 +$175.00 +3.27% FY 2002 "City" Property Tax $5,380.42 -$152.58 -2.76% FY 2003 "City" Property Tax $5,106.00 -$274.42 -5.10% FY 2004 "City" Property Tax $5,136.50 +$30.50 +0.60% FY 2005 "City" Property Tax $5,036.00 -$100.50 -1.96% FY 2006 1 "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% FY 2010 "City" Property Tax $5,909.69 -$66.75 -1.12% FY 2011 "City" Property Tax $6,011.44 +$101.75 +1.72% FY 2012 1 "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% 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% FY 2018 1 "City" Property Tax (5) $4,917.78 $959.11 -$125.58 -2.49% FY 2019 "City" Property Tax (6) $4,869.91 $843.08 -$47.87 -0.97% FY 2020 "City" Property Tax (7) $4,713.76 $860.57 -$156.15 -3.21 % FY 2021 "City" Property Tax (8) $4,694.17 $779.03 -$19.59 -0.42% FY 2022 "City" Property Tax (9) $4,556.11 $779.50 -$138.06 -2.94% FY 2023 "City" Property Tax (,o) $4,521.00 $721.73 -$35.11 -0.77% FY 1989-2023 Average Change -$70.11 -1.09% 2019-2023 Average Change 1 -$79.36 *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: PROJECTED FY 2024 "City" Property Tax CITY TAX BUSINESS CALCULATION PROPERTY CREDIT $4,521.00 (111) $0.00 DOLLAR PERCENT -$138.06 -0.777/. FY 2025 "City" Property Tax $4,820.27 $0.00 +$299.27 +6.62% FY 2026 "City" Property Tax $5,054.91 $0.00 +$234.64 +4.87% FY 2027 "City" Property Tax $5,206.86 $0.00 +$151.95 +3.01 % FY 2028 1 "City" Property Tax 1 $5,322.54 $0.00 +$115.68 +2.22% (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 Iowa. 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 •CTUAL — HISTORICAL =�CACCULATIO ITY TAX DOLLAR PERCENT $2,349.34 FY 2015 "City" Property Tax 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 Average FY 2016-FY 2023 -$126.11 -7.20% 1 -$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 Iowa will not backfill property tax loss from the rollback on multi -residential property. The rollback will occur as follows - Fiscal Year Rollback % Annual Loss of Tax Revenue 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. *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. FY 2024 Budget & Fiscal Policy Guidelines Page 38 HISTORY OF INCREASES IN PROPERTY TAX ASKINGS Year Tax Askings % Change Impact Homeowner"in Tax Askings FY 1989 1 $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% Average 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 PropertyFiscal "City" Tax Askings Tax $26,205,437 Askings Residential ..Impact Property,Year on Avg. .. FY 2024 $26,623,475 +1.60% +3.00% +$23.75 FY 2025 $28,628,198 +7.53% +4.87% +$39.70 FY 2026 $30,078,183 +5.06% +3.01% +$25.71 FY 2027 $31,362,004 1 +4.27% +2.22% +$19.58 FY 2028 $33,204,835 1 +5.88% +3.80% +$34.23 GUIDELINE 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 $688,895 for recurring funded by property taxes and $691,417 for non -recurring improvement packages funded by FY2024 DRA Distribution. Iowa Senate File 634 passed during the 2019 legislative sessions, makes changes to Iowa 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 GUIDE' " _ 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 3UIDELINE 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 GUIDEL IMF Capital improvement expenditures should concentrate on renovating and maintaining existing facilities to preserve prior community investment. X. NEW CAPITAL FACILITIES GUIDELINE 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 GUIDELINE 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 Iowa Constitution limits the General Obligation debt of any city to 5% of the actual value of the taxable property within the city. The Iowa 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 FY23 Statutory Debt Limit Used (as of June 30th) 100%90% o 87 /o 820 0 79% 79% 870 72% 74% 70% 75% 6% 60/o 0 66% 66% 62% 53% ° 47% 43% 43% ° ° 40 o 50 /0 41 /0 41 /0 /° 37% ° 34 /0 30% 26 /0 ° 23% o 25% 20 /0 17% TI TI 71 �I TI �1 TI 7I �I TI 71 TI �1 TI 71 7I TI �1 0 O V 00 W O N W A 0 O -4 00 W 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 Iowa for Fiscal Year 2022 with a population over 50,000: Fiscal Year 2022 Legal Debt Limit Comparison for Eleven Largest Iowa Cities Rank City Legal Debt Limit (5%) Statutory Debt Outstanding Percentage of Legal Debt Limit Utilized 11 Des Moines $ 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 Iowa 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 100% 75% 50% 31.02% 25% 18.74% 19-11% 24.10% -r § 0% 81.33% 60.40% 51.15% 52.33% 54.02% 54.47% 40.75% 44.67% 41 41, \oAaG��� °5 Pee P�WeO J��0 O��ya�e ��o\�e5 a�e�Qo� ��a��d5 `o J�G��A a�e��oo Goy �\o Oe p Geda 5 - �e5 ale ' P 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 Iowa 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 $274.7 $264.5 $243 $252.2 $216 $189 $162 $135 .4 6 $255.9 $251.5 $256.7 $257.9 $259.3 $258.8 $252.1 36.1 $244.3 $241.4 12.9 $226.2 189.6 $168.5 $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 Iowa 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 $3.0 $4.k $6.0 $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 Iowa 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 GUIDELINE 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 GUIDELINE 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 GUIDELINE 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. 0, (b) The maintenance and repair of streets. 50 Sales Tax 20%: (a) The upkeep of City -owned property such as sidewalks, steps, storm 0 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 31 st, 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. GUIDELINE $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 DISCUSSION 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% - I ° 7° 90% 97%100%99% 97% 96% 96%100%100%100%100%100%100%100%100% 75% 76% 85 /° 8 /° 50% �� _� F F � F F F F �� ti �* 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 Downtown 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 DRA to 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, Iowa 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 500 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. Prepared by: Jennifer Larson City of Dubuque 50 W. 1311 St Dubuque IA 52001 563 589 4398 Return to: Jennifer Larson, City of Dubuque, 50 W. 1311 St. Dubuque, IA 52001, 563.589-4398 RESOLUTION NO. 54-23 APPROVAL OF 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 City Council have considered the proposed Fiscal Year 2024 city maximum property tax dollars for the affected levy total; and Whereas, a notice concerning the proposed city maximum property tax dollars was published as required and posted on city web site and/or social media accounts if applicable; and Whereas, a public hearing concerning the proposed city maximum property tax dollars was held on February 20, 2023. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The maximum property tax dollars for the affected tax levies for Fiscal Year 2024 shall not exceed the following total: Total maximum levy for affected property tax levies $26,546,601 Section 2. The maximum property tax dollars requested in the total maximum levy for Fiscal Year 2024 represents an increase less than 102% from the maximum property tax dollars requested for Fiscal Year 2023. Passed, adopted, and approved this 20th day of February 2023. Brad M. Ca anag , Mayor Attest: Adrienne N. Breitfelder, `City Clerk 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 Adrienne Breitfelder From: Sent: To: Subject: f ' This sender is trusted. Contact Us Name: Steve Address: 2667 Marywood Dr Ward: 2 Phone:5633132716 Email: Smuensterl3@gmail.com City Department: City Council Citizen Support Center <dubuqueia@mycusthelp.net> Wednesday, February 15, 2023 8:21 AM Adrienne Breitfelder "Contact Us" inquiry from City of Dubuque website Message: As I take to me coworkers and family we are just upset with the idea of more taxes an extra 30 dollar may not seem much to some people but seniors on social security low income family's the price of gas ,food , medicine power and energy is going up and up iowa has is 8.5 percent lower in coming then most states . Stop taxing the lower middle class and giving money to the big corporations to build in dubuque they come in to town use the money pay little no taxes and leave as soon as the tax cuts are over . As for the city employees getting a 9 percent pay increase . For over2 years u must make appointments the be able to enter many city buildings most of the staff now work from home. Leaving tax payer to still pay for light gas power for building not being uses the way they should . STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION I, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 02/09/2023 and for which the charge is 193.50 � w Subscribed to be ore m , a Notary Public m and for Dubuque County, Iowa, this 9th day of February, 2023 229 1 Notary P t c in and for Dubuqu& County, Iowa. 4�aut a JANET K. 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