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Recommended Fiscal Year 2024 Dollars and Cents BrochureCopyrighted March 23, 2023 City of Dubuque Special Meeting Action Items # 01. IT E M T I T L E:Recommended F iscal Year 2024 Dollars and Cents B rochure S UM M ARY:City Manager providing a copy of the Recommended Fiscal Year 2024 Dollars and Cents B rochure. S UG G E S T E D D I S P O S I T I O N: Suggested Disposition: Receive and F ile AT TAC H ME N TS: Description Type Updated Brochure_Uploaded 3.22.23 Supporting Documentation Brochure Supporting Documentation DOLLARS &CENTS FY2024 CITY PORTION OF PROPERTY TAXES City of Dubuque FY2024 Recommended Property Tax Rate • $9.9013 per thousand dollars assessed value • Increase of 1.90% from FY2023 Property Type Avg. Property Tax Cost Change from FY2023 % Property Tax Cost Change from FY2023 Residential $23.25 more 2.94% increase Commercial $268.52 more 8.77% increase Industrial $296.26 more 6.55% increaseDubuqueAmesAnkenySioux CityIowa CityCedar RapidsDavenportAvg. w/o DubuqueWest Des MoinesDes MoinesCouncil BluffsWaterlooCity Propety Tax Rate Comparison $9.90 $9.96 $10.53 $11.76 $14.79 $15.42 $15.63 $16.03 $16.78 $17.56 $18.26 $20.81 $0 $5 $10 $15 $20 $25 • Highest-ranked city (Waterloo - $20.81) is 110% higher than Dubuque • Average of other 10 cities ($14.79) is 49% higher than Dubuque City Property Tax Rate Comparison Dubuque Community School District 45.5% City of Dubuque 31.8% Dubuque County 17.5%NICC 3.0% Other 2.2% FY2023 Consolidated Rate of 30.55266 Where Do Your Property Taxes Go? Recommended GENERAL FUND CITY BUDGET The City of Dubuque’s Fiscal Year (FY) 2024 budget runs from July 1, 2023, through June 30, 2024. The budget has two primary components: the operating budget and the capital budget. The operating budget includes personnel costs and annual facility operating costs. It is funded primarily through local property and sales taxes. The capital budget funds major improvements to City facilities and infrastructure. The capital budget is supported through multiple funding sources, including federal and state grants. The general fund is the operating fund for general City departments and their programs/services, such as public safety, culture & recreation, health & social services, and general government. FY2024 City Budget (Recommended) OPERATING BUDGET $57,186,070 $134,086,573 Major Funds Operating Capital General Fund $81,022,408 $115,000 Water Fund $9,777,127 $11,658,760 Sanitary Sewer Fund $12,440,629 $9,560,442 Stormwater Fund $4,872,784 $524,920 Refuse $3,827,298 $462,454 Parking $2,832,267 $106,409 OPERATING BUDGET CAPITAL BUDGET $76,554,143 $160,971,276 The City’s total budget recommended for FY2024 is $237,525,419 How General Fund Money is Spent Category Portion of General Fund Public Safety 42.5% Culture & Recreation 18.7% General Government 15.3% Public Works 8.9% Community & Economic Development 6.6% Capital Projects 0.1% Health & Social Services 1.4% Debt Service 0.2% Other 6.3% The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses that may occur. The goal is to have at least a 20% reserve. FY2023 FY2024 FY2025 FY2026 FY2027 City’s Spendable General Fund Cash Reserve Fund Balance $35,459,518 $29,659,518 $23,859,518 $18,059,518 $18,059,518 % of Projected Revenue 50.18%41.97%33.76%25.56%25.56% General Fund Reserve Projections Water SanitarySewer CurbsideCollection (Trash & recycling) Stormwater Major FundsOperatingCapital General Fund$81,022,408$115,000 Water Fund$9,777,127$11,658,760 Sanitary Sewer Fund$12,440,629$9,560,442 Stormwater Fund$4,872,784$524,920 Refuse$3,827,298$462,454 Parking$2,832,267$106,409 FY2023FY2024FY2025FY2026FY2027 City’s Spendable General Fund Cash Reserve Fund Balance$35,459,518$29,659,518$23,859,518$18,059,518$18,059,518 % of Projected Revenue50.18%41.97%33.76%25.56%25.56% What’s Included in YourMonthly Utility Bill? Recommended FY24 Rate: Avg. Household Rate: $35.82 / month* (8% increase from FY2023) Avg. Household Rate: $50.22 / month*** (6% increase from FY2023) Basic Rate $15.83/month* (2.93% increase from FY2023) Curbside collection of recycling is no extra charge. Avg. Household Rate: $10.00 / month** (11.11% increase increase from FY2023) Ranking Among Iowa’s Largest Cities: 2nd Lowest (Highest, West Des Moines, is 20% higher than Dubuque, and average is 8% higher than Dubuque) 4th Highest (Highest, Davenport, is 21% higher than Dubuque, and average is 15% lower than Dubuque) Lowest (Highest, Ames, is 84% higher than Dubuque, and average is 36% higher than Dubuque) 2nd Highest (Highest, Des Moines, is 64% higher than Dubuque, and average is 34% lower than Dubuque) ***Average household rate based on 6,000 gallons per month at $0.00837 per gallon. The City’s wastewater collection and treatment system operates as a self-supporting enterprise fund which means that it is funded only with revenue from user fees. *Average household rate based on 6,000 gallons per month at $0.00597 per gallon **Monthly rate for majority of Dubuque households based on usage of one single family unit. Stormwater fees are based on the amount of impervious ground coverage on a property. Fees collected are only used for stormwater management activities such as the construction, maintenance and operation of the public stormwater management system. The City offers income-qualified residential customers a reduction in monthly fees for water, sanitary sewer, refuse collection, and stormwater utilities. Customers must submit an application for consideration. Applications are renewed on an annual basis. LEARN MORE www.cityofdubuque.org/UtilityBilling or 563-589-4144 Water SanitarySewer CurbsideCollection (Trash & recycling) Stormwater REDUCED FEES FOR INCOME-ELIGIBLE RESIDENTS Street Improvements Fire Department Ladder Trucks 81% 60%54%54%52%51% 45%41% 31% 24%19%19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%Dubuque (FY24)AmesAnkenySioux CityIowa CityCedar RapidsDavenportAvg. w/o DubuqueWest Des MoinesDes MoinesCouncil BluffsWaterlooTop 10 Debt Uses (as of June 30, 2023) 2 Water & Resource Recovery Center 3 Water Improvements 4 5 6 7 8 9 10 Statutory Debt Li mi t Used (FY2024 Recommended) 90% 41% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 Total Debt i n Mi l l ions (FY2024 Recommended) $0 $50 $100 $150 $200 $250 $300 $350 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 $295.5 $250.0 $277.2 $155.9 Comparison of Statutory Debt Limit Utilized (FY2022) DEBT REDUCTION PLAN Adopted August 2015 The City of Dubuque’s use of debt can be compared to many average homeowners who borrow to buy their home. The City has borrowed money at low interest rates to invest in infrastructure. Unlike the federal government, the City does not borrow money to cover operating expenses. Total Debt (in millions) Debt is being issued each year, but more is being retired than is issued. Statutory Debt Limit Used This chart shows the percentage of statutory debt limit in the Fiscal Year (FY) 2024 recommended budget. By FY2033, the City will be at 23% of the statutory debt limit. Dubuque ranks as the fifth lowest and is below the average of the other cities. The average is 10% higher than Dubuque and the highest (Des Moines, 81%) is 100% higher than Dubuque. *Forgivable SRF debt is not shown (FY24 $4,813,335; FY25 $9,654,750; FY26 $9,694,980; FY27 $4,655,835; and FY28 $157,500) 1 Stormwater Improvements $70,680,924 # Project Description and Amount Outstanding $50,195,000 $27,025,430 Sanitary Sewer Improvements $25,213,340 Parking Improvements $21,188,482 Downtown TIF Incentives/Improvements $19,327,399 Industrial Park Expansions $10,897,22 4 Park and Recreation Improvements $6,973,814 Public Safety Improvements $4,406,310 TIF Rebates/Bonds to Businesses $3,916,272 CM033-032223 * $167 million has been spent on street improvements from 1997-2022 Total $239,824,195 DOLLARS &CENTS FY2024 CITY PORTION OF PROPERTY TAXES City of Dubuque FY2024 Recommended Property Tax Rate • $9.9013 per thousand dollars assessed value • Increase of 1.90% from FY2023 Property Type Avg. Property Tax Cost Change from FY2023 % Property Tax Cost Change from FY2023 Residential $23.25 more 2.94% increase Commercial $268.52 more 8.77% increase Industrial $296.26 more 6.55% increaseDubuqueAmesAnkenySioux CityIowa CityCedar RapidsDavenportAvg. w/o DubuqueWest Des MoinesDes MoinesCouncil BluffsWaterlooCity Propety Tax Rate Comparison $9.90 $9.96 $10.53 $11.76 $14.79 $15.42 $15.63 $16.03 $16.78 $17.56 $18.26 $20.81 $0 $5 $10 $15 $20 $25 • Highest-ranked city (Waterloo - $20.81) is 110% higher than Dubuque • Average of other 10 cities ($14.79) is 49% higher than Dubuque City Property Tax Rate Comparison Dubuque Community School District 45.5% City of Dubuque 31.8% Dubuque County 17.5%NICC 3.0% Other 2.2% FY2023 Consolidated Rate of 30.55266 Where Do Your Property Taxes Go? Recommended GENERAL FUND CITY BUDGET The City of Dubuque’s Fiscal Year (FY) 2024 budget runs from July 1, 2023, through June 30, 2024. The budget has two primary components: the operating budget and the capital budget. The operating budget includes personnel costs and annual facility operating costs. It is funded primarily through local property and sales taxes. The capital budget funds major improvements to City facilities and infrastructure. The capital budget is supported through multiple funding sources, including federal and state grants. The general fund is the operating fund for general City departments and their programs/services, such as public safety, culture & recreation, health & social services, and general government. FY2024 City Budget (Recommended) OPERATING BUDGET $57,186,070 $134,086,573 Major Funds Operating Capital General Fund $81,022,408 $115,000 Water Fund $9,777,127 $11,658,760 Sanitary Sewer Fund $12,440,629 $9,560,442 Stormwater Fund $4,872,784 $524,920 Refuse $3,827,298 $462,454 Parking $2,832,267 $106,409 OPERATING BUDGET CAPITAL BUDGET $76,554,143 $160,971,276 The City’s total budget recommended for FY2024 is $237,525,419 How General Fund Money is Spent Category Portion of General Fund Public Safety 42.5% Culture & Recreation 18.7% General Government 15.3% Public Works 8.9% Community & Economic Development 6.6% Capital Projects 0.1% Health & Social Services 1.4% Debt Service 0.2% Other 6.3% The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses that may occur. The goal is to have at least a 20% reserve. FY2023 FY2024 FY2025 FY2026 FY2027 City’s Spendable General Fund Cash Reserve Fund Balance $35,459,518 $29,659,518 $23,859,518 $18,059,518 $18,059,518 % of Projected Revenue 50.18%41.97%33.76%25.56%25.56% General Fund Reserve Projections Water SanitarySewer CurbsideCollection (Trash & recycling) Stormwater Major FundsOperatingCapital General Fund$81,022,408$115,000 Water Fund$9,777,127$11,658,760 Sanitary Sewer Fund$12,440,629$9,560,442 Stormwater Fund$4,872,784$524,920 Refuse$3,827,298$462,454 Parking$2,832,267$106,409 FY2023FY2024FY2025FY2026FY2027 City’s Spendable General Fund Cash Reserve Fund Balance$35,459,518$29,659,518$23,859,518$18,059,518$18,059,518 % of Projected Revenue50.18%41.97%33.76%25.56%25.56% What’s Included in YourMonthly Utility Bill? Recommended FY24 Rate: Avg. Household Rate: $35.82 / month* (8% increase from FY2023) Avg. Household Rate: $50.22 / month*** (6% increase from FY2023) Basic Rate $15.83/month* (2.93% increase from FY2023) Curbside collection of recycling is no extra charge. Avg. Household Rate: $10.00 / month** (11.11% increase increase from FY2023) Ranking Among Iowa’s Largest Cities: 2nd Lowest (Highest, West Des Moines, is 20% higher than Dubuque, and average is 8% higher than Dubuque) 4th Highest (Highest, Davenport, is 21% higher than Dubuque, and average is 15% lower than Dubuque) Lowest (Highest, Ames, is 84% higher than Dubuque, and average is 36% higher than Dubuque) 2nd Highest (Highest, Des Moines, is 64% higher than Dubuque, and average is 34% lower than Dubuque) ***Average household rate based on 6,000 gallons per month at $0.00837 per gallon. The City’s wastewater collection and treatment system operates as a self-supporting enterprise fund which means that it is funded only with revenue from user fees. *Average household rate based on 6,000 gallons per month at $0.00597 per gallon **Monthly rate for majority of Dubuque households based on usage of one single family unit. Stormwater fees are based on the amount of impervious ground coverage on a property. Fees collected are only used for stormwater management activities such as the construction, maintenance and operation of the public stormwater management system. The City offers income-qualified residential customers a reduction in monthly fees for water, sanitary sewer, refuse collection, and stormwater utilities. Customers must submit an application for consideration. Applications are renewed on an annual basis. LEARN MORE www.cityofdubuque.org/UtilityBilling or 563-589-4144 Water SanitarySewer CurbsideCollection (Trash & recycling) Stormwater REDUCED FEES FOR INCOME-ELIGIBLE RESIDENTS Street Improvements Fire Department Ladder Trucks 81% 60%54%54%52%51% 45%41% 31% 24%19%19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%Dubuque (FY24)AmesAnkenySioux CityIowa CityCedar RapidsDavenportAvg. w/o DubuqueWest Des MoinesDes MoinesCouncil BluffsWaterlooTop 10 Debt Uses (as of June 30, 2023) # Project Description and Amount Outstanding 1 Stormwater Improvements $76,527,913 2 Water & Resource Recovery Center $57,395,000 3 Water Improvements $30,069,008 4 Parking Improvements $23,769,184 5 Downtown TIF Incentives/Improvements $20,177,588 6 Sanitary Sewer Improvements $13,301,860 7 TIF Rebates/Bonds to Businesses $8,216,815 8 Industrial Park Expansions $6,412,953 9 Caradco Building Iowa Finance Authority Loan $3,470,309 10 Street Improvements* $2,941,387 Total $242,283,017 * $162 million has been spent on street improvements from 1997-2021 Statutory Debt Li mi t Used (FY2024 Recommended) 90% 41% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 Total Debt i n Mi l l ions (FY2024 Recommended) $0 $50 $100 $150 $200 $250 $300 $350 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 $295.5 $250.0 $277.2 $155.9 Comparison of Statutory Debt Limit Utilized (FY2022) DEBT REDUCTION PLAN Adopted August 2015 The City of Dubuque’s use of debt can be compared to many average homeowners who borrow to buy their home. The City has borrowed money at low interest rates to invest in infrastructure. Unlike the federal government, the City does not borrow money to cover operating expenses. Total Debt (in millions) Debt is being issued each year, but more is being retired than is issued. Statutory Debt Limit Used This chart shows the percentage of statutory debt limit in the Fiscal Year (FY) 2024 recommended budget. By FY2033, the City will be at 23% of the statutory debt limit. CM033-032223 Dubuque ranks as the fifth lowest and is below the average of the other cities. The average is 10% higher than Dubuque and the highest (Des Moines, 81%) is 100% higher than Dubuque. *Forgivable SRF debt is not shown (FY24 $4,813,335; FY25 $9,654,750; FY26 $9,694,980; FY27 $4,655,835; and FY28 $157,500)