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Fiscal Year 2024 Updated Dollars and Cents Brochure Including Moody' Bond rating Upgrade Copyrighted August 7, 2023 City of Dubuque Consent Items # 05. City Council Meeting ITEM TITLE: Fiscal Year 2024 Updated Dollars and Cents Brochure Including Moody' Bond rating Upgrade SUM MARY: City Manager providing a copy of the Fiscal Year 2024 Updated Dollars and Cents brochure including Moody' bond rating upgrade. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type Dollars and Cents FY24 CM034-072423 Supporting Documentation . . • • • � � i� ` � _�- � -- - . � , . � � � _k . .� � �'��I.'� '��� � ����F� .� �'°'Y� �` � . F � i , ��'�' �� � 7 - ' ,i. . A � .'- 1 Y��z ' � j--,- • "1 e� . . _ �`" •'G _ � �r 9f p . .� rz` ' k—�� ,. _ �T` .-- ' ' --. ...- '����. ��.y�i' .,. -< -� , _�. _— . _-, ��` _ ' � , , � � � -� � �' .`��'�� ���-� F�=l- -'� �� ,_.�� T� � ' -n�P'� � �_�'_ � _ �� , � �.'�"'7�•:�-��` M ^� r� ��il' "� �' � _ � — :'�� . . !`J_ n�� -s�-"Fr� � ,� u�€g,� ';� — � 1 _. �. :ei. � 'r�, ��' I � , Y� y ': FY2024 PropertyTax Rate ��" �" ° � � _ ...`�:� 1K - _ . �7��r�Yd_I • $9.9013 perthousand dollars assessetl value • Increase of 1.90% from FY2023 Where Do Your Property Type Avg. Property Tax Cost % Praperty Tax Cost Change Property Taxes Go? Change from FY2023 from FY2023 Fy2023 Consolidated Rate of 30.55266 Resitlential $23.25 more 2.94% increase Commercial $268.52 more 8.77% increase Industrial $296.26 more 6.55% increase �ubuque � i � � County 17.5% NICC $25 City Property Tax Rate Comparison — 3�0% $2o.s� Other $20 '' � 2.2% $16.03 �16.78 $17.56 $18.26 . $15 $14.79 $15.42 $15.63 $11.76 $9.90 $9.96 ��0.53 $10 ■ Highest-ranked city(Waterloo-$20.81) is $5 110% higher than Dubuque $o ■ Average of other 10 cities ($14.79) is QJe ��,s e.�� \�es QJa� G�,� ��,� .`aS o��. �eS J+�S ��°° LF9% higher than Dubuque OJ.pJ Q. Q',�� s�o OJ�pJ `oJ�. o�a `QmQ �,yoQ s�0` 0�0� ���,e� �S��e, ��o S � ��a'� O pe �oJo e Q�� • • 1 � � . 1 ' � � � ' � � � likely to remain strong because of Moody's Investors Service upgraded "the City has strong financial its mix of commercial and industrial the City of Dubuque's issuer rating and operations and ample revenue- �ndustries, sfable population and outstandinggeneral obligation unlimited raisingflexibility, whichhasresulted steadytaxbasegrowth." tax bonds in July 2023 from Aa3 to in steadily improved available fund Aa2, the third-highest rating possible. Moody's credit analysis of the City of The improved rating will assist the City balance and cash. The cify serves as Dubuque states, "The City's healthy in securing the best terms for financial a regional economic center and its financial operafions, with strong regional economic growth rate has products like loans, which will provide reserves, have resulted in steady substantial savings for the City and outpaced the nation over the past five �mprovement in available fund taxpayers. According to Moody's, years. The city's local economy is balance and cash ratios." FY2024 City Budget The City's total budget for � - � FY2024 is $237,525,419 ` ' , , , 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 Major Funds � � - � . � . and infrastructure. The capital budget is supported through General Fund $81,022,408 $115,000 multiple funding sources, including federal and state grants. Water Funtl $9,777,127 $11,658,760 Sanitary Sewer Funtl $12,440,629 $9,560,442 StormwaterFund $4,872,784 $524,920 Refuse $3,827,298 $462,454 Parking $2,832,267 $106,409 � � � The general fund is the operating fund for general City departments and their programs/services, such as public safety, culture & recreation, health & social services, and general government. How General Fund Money is Spent � , �, , , , Public Safety 42,5% Culture & Recreation 1g.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% General Fund Reserve Projections , , , , , , , The City maintains a general fund reserve, ,. ,,, . . , or working balance,to allow for unforeseen � ;, . . $35,459,518 $29,659,518 $23,859,518 $18,059,518 $18,059,518 expenses that may occur. The goal is to have at least a 20% reserve. ' � � ' � �' � 50.18% 41.97% 33.76% 25.56% 25.56% • • � • • � • � ' • - ' • • � • • • • • • - - � . . - . . ' . - . . - : . . - - �- . - �•. . - . � . . - -. - . � . . . - ..- . - . � . . - � . . - . . ' . - . - 1 . • - �. - .. . - . � . . - .•. -. - . � . . . - ..- . - . � . . - � . - . . . - . . • -. - . � . - � - :- . - . � . . - . .- . - . . - . . . . - ..- .•. . - . � . . - . - . . .- � . . - . . ' . - . . - 1 1 1 . . - �- . - .-' . - . � . . - • • • - •�- • - • � • • - -• - • � xAverage household rate based on 6,000 gallons per month at$0.00597 per gallon ,. �)i:i'% **Monthly rate for majority of Dubuque households based on usage of one single family unit. Stormwater fees are based on , „„�u;� the amount of impervious ground coverage on a property. Fees collected are only used for stormwater managemen ivities ,����.�� such as the construction, maintenance and operation of the public stormwater management system. ��*Average household rate based on 6,000 gallons per month at$0.00837 per gallon. The City ction an treatment system operates as a self-supporting enterprise fund which means that it is funded only wi venue from user fees.'"`��''"zy — � �V< <� . � 1 � � ���� I I` .,' �C� REDUCED FEES FOR I NCOME- � � - ,, !"� � � ) ELIGIBLE RESIDENTS ��� � �� , � . 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 • • • • • • • .�• • • • • • • 1 . • • • • • • • • . • • • • • • • 1 , . � , • � �• • • • � • • • • • • • • • • 1 .�• • • • • • • • . • • • • � • • 1 . • • • • • • • • • • • • • • • 1 • • • • • • � • • • • • • � �• • • • • • • • • • • • • i Total Debt (in millions) ` � � Y�` ' ���y� �� p'� {5�F � ` ^p � $35° Debt is being issuetl each year,but more is being retired than is issued. " ��: � ., �� � � r' � � ,�� $295.5 fy ��..� -. ,_ :' � , $soo � -e ��� � �- - _ x �_�_��= $277.2 `. ''�,` - 'p �'-�- rq' $250.0 �' ' -� ��j_��"a i. �� � � S2so =� _� r ��- ��u�;�, ���� � -� ; ��.�,�'r� -i-, , '= __��� �-� $zoo �' -- � , ;--_ t r *Forgivable SRF debt is not shown ' �''• •"' $�� (FY24$4,813,335;FY25$9,654,750; FY26$9,694,980;FY27$4,655,835; $155.9 �� r , � � $�oo and FY28$157,500) � �,� a ,+�'� —�� .�. =�' 3 - � $so �� / ., (FY2024 Adopted) ! , '�-� � . � ���ti ����. � _x $o ~-- ' , - FY15 FY1fi FY11 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY21 FY28 FY29 FY30 FY31 FY32 FY33 � 1-� � � �' - � --- s-�-.. :.-._�, .. .,..,-. . _ . _,�_•�� ._.: .,t. - — — , i ' ... ..-��. �. , . _�._ . .,,,.:, ..�.� � -: � . �°°°% 90�o Statutory Debt Limit Used "�" � o ' ' � , R. 90% This chart shows the percentage of statutory debt limit in 80% the Fiscal Year(FY)2024 budget.By FY2033,the Citywill The City of Dubuque's use of debt �oo�o be at 23°�of the statutory debt�imit. can be compared to many average so�io homeowners who borrow to buy their home. The City has borrowed 5o�i° 41% money at low interest rates to ao�io � invest in infrastructure. Unlike 3o�io the federal government, the City does not borrow money to cover 20��° 23�/a operating expenses. �o�io (FY2024 Adopted) o�io FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 1 I � I ' I Comparison of Statutory Debt Limit Utilized ' ' � � � 90��° # Pro�ect Descri tion and Amount Outstandin s,��o (FY2022) 1 p g $o°i� 1 Stormwater Improvements $70,680,924 �oo�0 2 Water&Resource Recovery Center $50,195,000 _ 60% 3 Water Im rovements $27,025,430 so°io 54% 54% 52% 51% 4 Sanitary Sewer Improvements $19,327,399 so°io 45% 41% 5 Parkinglmprovements $25,213,340 ao°io 310�0 6 Downtown TIF Incentives/Improvements $19,327,482 o Dubuque ranks as the fifth lowest and is below o 7 Intlustrial Park Expansions $10,897,224 3oi° the average of the other cities.The average is 24�0 0 0 19/0 19/0 8 Park and Recreation Improvements $6,913,814 2o°i 10%higherthan Dubuque and the highest(Des Moines,81%)is 100%higher than Dubuque. 9 Public Safety Improvements $4,406,310 10% 10 TIF Rebates/Bondsto Businesses $3,916,272 a�a Total $239,824,195 �o���S a�,�+\�o OJ-��'�� `�a��aS J�OQ�`� �o���S J.pJ�'J� ��C����Q�`b�'�� Q���S ,���J��S o�a�'�� *$167 million has been spent on street improvements from 1997-2022. p�S � S` �,aa 4a p�S �o� Ja`� ��� � Over 52 miles of streets have been resurfaced or reconstructed �' ��`'� Q��; O°� �'� in the last 5 years. CM034-041923