Recommended Fiscal Year 2026 Budget Presentation Copyrighted
March 31, 2025
City of Dubuque ACTION ITEM # 1.
City Council
ITEM TITLE: Recommended Fiscal Year 2026 Budget Presentation
SUMMARY: City Manager presenting the recommended Fiscal Year 2026
Budget.
*Presentation will be available on March 31, 2025.
SUGGUESTED
DISPOSITION:
Receive and File; Presentation
ATTACHMENTS:
1. MVM Memo
2. FY26 Recommended Budget - City Manager Presentation_Uploaded 3.31.25
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TO: The Honorable Mayor and City Council Members
FROM:Michael C. Van Milligen, City Manager
SUBJECT:Fiscal Year 2026 Recommended Budget
DATE:March 26, 2025
It is my goal that the Fiscal Year (FY) 2026 budget recommendation will reflect the City Vision
and Mission Statements as established by the Mayor and City Council and be responsive to the
goals and priorities established by the Mayor and City Council in their August 2024 annual goal
setting session.
In August 2024 the Mayor and City Council met for their annual three-day strategic planning
session and established the following:
2024 Vision Statement
Dubuque 2039 is a sustainable and resilient city, an inclusive and equitable community where
ALL are welcome. Dubuque 2039 has preserved our Masterpiece on the Mississippi, has a
strong, diverse economy and expanding connectivity. Our residents experience healthy living
and active lifestyles; have choices of quality, affordable, livable neighborhoods; have an
abundance of diverse, fun things to do; and are successfully and actively engaged in the
community.
Mission Statement
Dubuque city government is progressive and financially sound with residents receiving value for
their tax dollars and achieving goals through partnerships. Dubuque city government’s mission is
to deliver excellent municipal services that support urban living; contribute to an equitable,
sustainable city; plan for the community’s future; and facilitate access to critical human services.
Five-Year Goals: 2024-2026
1.Vibrant Community: Healthy and Safe
2.Financially Responsible, High-Performance City Organization: Sustainable, Equitable,
and Effective Service Delivery
3.Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity
4.Livable Neighborhoods and Housing: Great Place to Live
5.Sustainable Environment: Preserving and Enhancing Natural Resources
6.Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility
7.Diverse Arts, Culture, Parks, and Recreation Experiences and Activities
8.Partnership for a Better Dubuque: Building Our Community that is Viable, Livable, and
Equitable
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2024-2026 Top Priorities (in alphabetical order)
1.Air Service: Future Strategy and Action Plan: Major Airline Hub Connections
2.Central Avenue Revitalization Plan Implementation
3.Construction of 14th Street Railroad Overpass and 16th Street Corridor Complete Street
Improvements: RAISE Grant and Matching Funds
4.Police Department Staffing and Hiring
5.Street Maintenance/Rehabilitation Program
2024-2026 High Priorities (in alphabetical order)
1.Catfish Creek Sanitary Sewer Project: Old Mill Road Lift Station Project
2.Chaplain Schmitt Island Development
3.City Workforce Retention and Attraction
4.Comprehensive Study of Fire Station Locations and Staffing
5.Parks Maintenance/Refresh Action Plan.
“The two most important days in a person life are they day they are born, and the day they find
out why.” Mark Twain
I feel so fortunate to work with a hard working, committed group of city employees who have
determined that their “why” is to lift up and serve others. Recognizing the value of our current
city workforce and the need to continue to recruit talented and committed employees the City
Council again chose as a priority, “City Workforce Retention and Attraction.” While this has been
a consistent challenge since the pandemic across the city organization the problem has been
especially acute in the Police Department with a consistent vacancy rate of about 15 police
officers.
This budget recommendation includes implementation of a recently completed classification and
compensation study to ensure the City is paying competitive wages, including all levels in the
Police Department, and it includes implementation of a previously City Council approved
Precision Policing Center that will be a force multiplier for the Police Department and is funded
by eliminating six sworn positions to create five non-sworn positions and equip the Precision
Policing Center.
This budget recommendation is built on:
1.City Council Goals & Priorities
2.Major Capital Improvement Projects
3.Public Safety
4.Streets
In July 2023, the prudent financial management by the Mayor and City Council was being
recognized. Moody's Investors Service upgraded the City of Dubuque, IA's issuer rating
and outstanding general obligation bonds toAa2 fromAa3, as well as its outstanding
moral obligation SalesTax Increment Revenue Bonds, Senior Bond Series 2015A toA1
from A2.
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The issuer rating was upgraded toAa2 because the city has strong financial operations
and ample revenue-raising flexibility, which has resulted in steadily improved available
fund balance and cash. The city serves as a regional economic center and its regional
economic growth rate has outpaced the nation over the past five years. The city's local
economy is likely to remain strong because of its mix of commercial and industrial
industries, stable population and steady tax base growth. Resident wealth and income
ratios are a little below rated peers, in part because of a large student population.
Leverage is elevated and could grow further because of outstanding capital needs.
In January 2025, Moody’s Investor Services reaffirmed the July 2023 bond rating upgrade.
Fortunately, Dubuque is outperforming most of our peers across the state of Iowa and the
Midwest. As you can see in the following chart, the city has climbed out of a decades long hole,
achieving growth that few other Midwest communities have experienced. To maintain and
accelerate this momentum there must be continued investment. The good news for the city is
that the federal government has decided to be a financial partner with local governments to spur
growth and investment and the City of Dubuque has received several very important federal
grants.
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Reviewing the five-year Dubuque County goals (2022-2027) for the Greater Dubuque
Development Corporation (GDDC) you can see significant progress is being made. This is
especially true in the areas of increasing Median Household Income and Construction
Investment.
Median Household Income has increased from $68,198 in 2021 to $75,919 as of December
2024 ($7,721, 11.3%).
The GDDC target for Construction Investment is $1 billion by 2027 and only 31 months into the
five-year plan the amount of investment in Dubuque County alone is over $783,422,883. At this
pace the amount of investment over 5 years could hit over $1.5 billion in Dubuque County, and
far exceed that total on a regional basis.
The Office of Shared Prosperity and Neighborhood Services reports that progress is being made
on poverty prevention and reduction and Dubuque is again outperforming our peer cities in the
State of Iowa, though the reduction of direct federal assistance to families caused a slight
poverty uptick in 2022:
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Cost Increases
Supply chain issues and rising prices for fuel, vehicles, equipment, construction materials,
electronics, and more are impacting the operating expenses of many City departments. Like the
private sector, the City is also facing significant challenges in filling staff vacancies and new
positions as Iowa’s workforce crisis continues to manifest itself through record low
unemployment and significant employee turnover.
To enhance the City’s employee retention and recruitment efforts and to respond to core
inflation, I am recommending that non-bargaining unit employees receive a 3% wage increase.
The Dubuque Police Protective Association (DPPA) 5-year contract was approved last year with
a 5% wage cost in FY25, and 5% in FY26, after a 6% increase in FY24. The City successfully
negotiated new agreements with the Operating Engineers and the Dubuque Professional
Firefighters last year with Operating Engineers wage cost of 3.25% in FY25 and 3.5% in FY26
and the Firefighters wage cost of 5% in FY25 and 3.5% in FY26. The two Teamster collective
bargaining agreements are currently in negotiations.
I am recommending a 3% cost of living wage increase this year for non-bargaining employees
along with implementation of the results of Carlson Dettman (Cottingham & Butler)
Compensation and Classification Study results. If this is approved, non-bargaining unit
employees have averaged a 2.3% annual wage increase over 11 years, including no wage
increase in FY2021 at the beginning of the pandemic. The average change in the Consumer
Price Index over that period was 2.7%.
Community Safety
In the area of public safety, the City has added ten positions to the Fire Department over the last
few years. There will also be a replacement of 4 major pieces of equipment at a cost of over $2
million. This further enhances a Fire Department that, as an Insurance Services Office Class II
Fire Department, is ranked in the top 3% of the over 48,000 Fire Departments in the United
States. The Dubuque Fire Department is one of less than 300 Fire Departments internationally
to receive accreditation by the Commission on Fire Accreditation International. It is no wonder
that when asked to rate all of Dubuque’s public services, local CEOs, business owners, and top
managers rated Dubuque’s fire service #1 and its ambulance service #2.
The City will also continue the aggressive deployment of security cameras, which is being made
easier as ImOn Communications has committed to deploying fiber optic cable across the entire
Dubuque community over the next three years with the goals of serving every home and
business with fiber optics. The City Council approved in 2023 technology as police force
multipliers with Automated License Plate Readers.
In 2024 the Mayor and City Council approved the request from Chief of Police Jeremy Jensen to
convert 6 vacant sworn Police Officer positions to cover most of the costs to create a Precision
Policing Center staffed with five civilian employees who will bring even greater technology
improvements to crime prevention, criminal apprehension and Police Officer safety in our
community.
I have attached the 2024 Dubuque Police Department Annual Report. You will see Dubuque has
had a 44% reduction overall cases from 2015-2024. The crime clearance rate for property
crimes is 91% compared to 13% nationally.
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The City is committed to aggressively filling the many vacancies in the Police Department
triggered, in part, by the hiring freeze during the economic crisis caused by the pandemic. The
6% wage increase in FY24, the 5% wage increase in FY25, and the 5% wage increase in FY26,
along with the midyear pay boost for command staff will help with retention and recruitment.
The City and Dubuque County are partnering on two important projects. The first is a 50/50 split
on the $5 million in costs to move the 911 Emergency Communications Center to a new facility,
and a 50/50 cost split on the $3 million to replace the Police, Fire, 911, and Sheriff’s Office
operating software.
In Dubuque, Iowa, access to clean drinking water is crucial for public safety, preventing
waterborne diseases, and promoting overall public health. Water Department staff work
diligently to ensure that the water meets both federal and state regulatory standards. Clean,
treated water is vital in reducing the risks of diseases like cholera, giardia, and E. coli—illnesses
that could overwhelm healthcare systems and trigger public health emergencies. Moreover, it
supports essential hygiene and sanitation practices, such as handwashing, cooking, and
cleaning, helping to prevent infections and safeguard the community's well-being.
Clean drinking water supports other City Departments, including Parks & Recreation. It ensures
hydration for park visitors during outdoor activities, particularly in warm weather, through
fountains, water stations, pools, and splash pads, promoting health and preventing dehydration.
A reliable water distribution system is crucial for Dubuque’s emergency preparedness. The fire
department depends on this system to fight fires. Fire hydrants provide a high-pressure water
supply, enabling swift action to control fires, minimize damage, and save lives. A stable water
distribution system is essential for ensuring that emergency services, especially firefighting
efforts, can respond effectively and efficiently. The exceptional water system is taking into
consideration as the Fire Department earns a prestigious Class II ISO rating.
The City of Dubuque Planning Services Department plays a vital role in ensuring the safety of
the public by guiding the city’s growth in accordance with the City of Dubuque Unified
Development Code (UDC) and the Imagine Dubuque Comprehensive Plan. Through the UDC,
the department enforces zoning regulations that prevent incompatible land uses, such as
separating residential and industrial areas. Additionally, the UDC mandates important safety
features in the design of buildings, such as required building setbacks, ensuring safe distances
between structures to prevent overcrowding and allow for proper emergency access. It also
enforces standards for light and ventilation to ensure buildings have sufficient airflow and natural
light, contributing to healthier and safer living environments. The UDC includes fire separation
requirements to minimize the risk of fire spreading between structures, providing vital protection
for both residents and property. Furthermore, the department’s oversight of site plans,
subdivisions, and other developments ensures that safety considerations are central to the
design and construction of all projects, creating safer communities for everyone.
The Imagine Dubuque Comprehensive Plan further complements these efforts by providing a
long-term vision for the city’s growth, which prioritizes the creation of safe, livable communities.
This plan incorporates strategies for improving transportation networks, enhancing pedestrian
and cyclist safety, and creating well-lit, accessible public spaces and to promote overall safety
within neighborhoods. The Planning Services Department, working in coordination with other city
departments, ensures that these safety-focused strategies are incorporated into every aspect of
the city’s growth, from infrastructure planning to community engagement.
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In addition to the UDC and comprehensive planning, the Planning Services Department also
oversees specialized functions such as floodplain management and development review
facilitation. As the city’s Flood Plain Manager, the department ensures that development within
flood-prone areas complies with regulations that minimize flood risks, protecting both public
safety and property. Furthermore, the department leads the development review team, which
consists of key city staff members who evaluate projects for compliance with safety standards,
zoning codes, and environmental regulations. By providing this thorough review process, the
Planning Services Department ensures that developments not only meet regulatory
requirements but also enhance the safety, sustainability, and resilience of the community.
The Office of Shared Prosperity and Neighborhood Support is implementing the Poverty
Prevention and Reduction Plan. Poverty is defined as "an economic state in which an
individual's or family's income can't cover the basic needs of everyday life." These needs
typically include housing, food, child-care, clothing, health, transportation, and internet access.
The impact of poverty is a safety concern to our community.
The struggles and trauma associated with poverty weakens families and individuals, some of
whom struggle within poverty's grip for generations. Families are the building block of a thriving
society; if those blocks are compromised or fractured, so too, is the whole of society. Poverty
poses barriers to securing an education, acquiring a job with a living wage, and affording safe
and affordable housing for individuals and families.
Addressing poverty in the City of Dubuque requires a collaborative, community-wide "all hands-
on deck" effort. Our department partners with multiple city departments and community partners
across sectors to implement the Equitable Poverty Reduction and Prevention Plan.
Dubuque 911 Emergency Communications Center acts as a central hub for receiving
emergency calls, and dispatching the appropriate response (Police, Fire & EMS). Dispatchers
coordinate communications with the responding agencies, doing their best to get everyone a
better understanding of what is happening. Dubuque is very fortunate all the calls whether
emergency and non-emergency calls come to the same location. All our staff is trained in
Emergency Medical Dispatch (EMD), Emergency Fire Dispatch (EFD) and Emergency Police
Dispatch (EPD). Dispatchers do ask a lot of questions but just know as you are answering those
very important questions with information for the responders, all that information is being passed
along to those coming to help you! We ask the questions to better inform our responders and to
keep our callers safe.
There are many ways the Emergency Communications Department supports other departments
in Public Safety.
•When calling 911 you can help the dispatcher by providing detailed information
about what is happening. We quickly gather information from the callers to assess
what is happening and what units are needed (EMS, Fire & Police). The quicker
we can get the information the better response time for responding agencies.
•Dispatchers can facilitate communications across multiple different responding
agencies, making sure everyone has access to important details of the incident.
These include but not limited to Iowa State Patrol, DNR, Dubuque County Sheriff,
Dubuque County Conservation, Iowa DOT, County DOT, etc.
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•Dispatchers have the ability to use advanced forms of technology to pinpoint exact
location of emergency callers. Ensuring that responders get to the correct location.
They’re also able to connect 911 callers to adjacent counties communication
centers both IA, WI, and IL.
•We have smart 911. Callers and businesses have ability to make personal/
business profiles that will share needed information on a 911 call. It only shares
information provided in the profile; and only when you call 911 from the specific
number provided in your profile. This information can gives us door codes or
certain directions about how to get to the residence.
•Dispatch has on call lists for most City of Dubuque Departments. We are the
answering point for all City of Dubuque departments after normal business hours.
Dispatchers use numerous resources to assist our callers in eventually speaking
with the department they need. We work closely with Public Works (road
conditions), the Water Department (water main breaks) and Traffic Signal
Technicians (traffic light issues), records and Courthouse.
•Dispatchers utilize City Cameras – to provide live, up-to-date information to the
responding units, as well as play back footage to assist for a multitude of calls for
service.
•Dispatchers are trained to stay on the line with callers during emergency event
until responders arrive. We want the caller to feel safe and protected with us on
the line talking or listening and offering whatever help we can until responders
arrive.
•Dispatchers complete ongoing training and keeping up to date on all the new
things in 911! We have multiple platforms of online training that they work through
alongside of their regular responsibilities. We want to be as prepared as possible
to respond during a crisis!
While I am now a City Manager, I was once a Police Officer. I referred to the 911 dispatchers as
our “Guardian Angels” as we knew they were sitting on our shoulders ready to get us help on a
moments notice.
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Sustainability is playing the long game, but it impacts our lives today. If we hope for a better city
and world for our children and grandchildren, and all those who come after, we must prioritize
our environment. This means protecting and preserving our air quality and water, rather than
continuing to degrade them. As Jayla Rousseau-Thomas, an Anishinaabe woman, mother and
social worker living on the traditional territories of the Kwanlin Dun First Nation and Ta’an
Kwachan Council in Whitehorse, Yukon shared, " Simply put, the Seven Generations Principle
puts the onus on decision makers to consider the options and their impacts outside of just the
current context when making decisions at the individual, family, and community levels. Each
person is to consider the decision they are seeking to make, in addition to considering what
would the seven generations before them have done, and how will this decision impact seven
generations into the future."
At its core, sustainability means ensuring our ability to continue and survive. Community
sustainability initiatives involve local policies that consider multiple human needs. A sustainable
community is a place where people of diverse backgrounds and perspectives feel welcome and
safe, where every group has a voice in decision-making, and where prosperity is shared.
Through thoughtful planning and strong sustainability efforts, we can build resource-efficient,
stable, and cohesive communities. These efforts not only protect us from economic shocks, but
strengthen our resilience to other threats, such as severe weather. Sustainability touches nearly
every aspect of our daily lives, many of which we often take for granted: the air we breathe, the
food we eat, the water we drink, the clothes we wear, and the homes we live in. It influences our
physical health, our modes of transportation, land use, biodiversity, and even how we handle
waste. By promoting sustainability, we create safer, healthier, and more productive
environments. We empower communities to focus on the well-being of all residents, fostering
resilience and justice.
Our sustainability work cultivates and maintains deep relationships within the community by
identifying assets, skills, knowledge, and vulnerabilities. These connections support quotidian life
as well as during times of disruption. The link between poverty and environmental degradation
underscores the importance of addressing poverty prevention as a part of sustainability efforts.
By working on energy efficiency and conservation, we reduce the economic burden on
vulnerable populations. We also work to mitigate the impacts of disasters, as extreme weather
events can lead to economic crises.
Ultimately, sustainability provides a path forward, overcoming the fear, confusion, and apathy
that often accompany our changing climate. It empowers individuals, neighborhoods,
businesses, non-profits, and cities to take collective action. By considering our relationship to the
land, our infrastructure, and one another, we can create a resilient and lasting future where all
can thrive.
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The Health Services Department is an integral component of the City’s public safety, primarily
through Animal Control and Environmental Health activities. Animal Control enforces the Animal
Control ordinance through the prohibition and enforcement of dogs and cats running at-large
within the city, inoculation of all dogs and cats against rabies, investigation of animal bites and
assurance of proper rabies confinement, prohibition of harboring a vicious or potentially vicious
animal or dangerous animal and prohibition of animals causing serious disturbance or nuisance.
The Environmental Health activity provides public safety through the inspection of food
establishments (grocery stores, restaurants, etc.) to assure food safety limit food borne illness,
along with public swimming pool and spa inspection. The department also plans for and
responds to public health emergencies such as disease outbreaks, epidemics and pandemics
and assures children with lead poisoning receive medical case management.
There is no greater concern for residents than ensuring their safety, and the Dubuque Fire
Department plays a crucial role in safeguarding both our community and visitors. As a nationally
accredited department, part of an elite group of fewer than 300 worldwide, and holding an ISO
Class 2 rating—placing Dubuque among the top 3% of over 48,000 U.S. fire departments—the
department sets a high standard in emergency response. The Fire Department provides
essential services, including fire suppression, advanced life support (ALS) medical care and
transport, technical rescues, water rescues, and hazardous materials response. In 2024 alone,
the department responded to nearly 8,000 incidents, averaging 22 incidents per day,
approximately 50 vehicle responses per day, showcasing the community’s reliance on swift and
effective action in times of crisis. The Greater Dubuque Development Corporation has
recognized the department’s value, presenting fire a 6.27 rating and ambulance a 6.16 rating out
of 7 in its FY2023-2024 Public Services Index, ranking them first and second in overall service
satisfaction. This feedback reflects the community’s trust in the department’s ability to deliver
top-tier emergency services that directly contribute to the safety and well-being of everyone in
Dubuque.
At the heart of the Fire Department’s service is a team of dedicated firefighter-paramedics, each
trained to the highest fire, EMS, and special response standards and equipped to provide life-
saving care during any emergency. Dubuque’s fire suppression vehicles and ambulances are all
fully equipped with advanced medical equipment, ensuring we can provide critical care
immediately when it's needed most. In addition to emergency response, the Dubuque Fire
Department is also committed to community risk reduction through public education and
proactive efforts to reduce fire and injury risks. By offering educational programs, safety
inspections, and fire prevention initiatives, the department works to minimize the likelihood of
emergencies and help the public better protect themselves. Beyond responding to emergencies,
the Fire Department collaborates closely with law enforcement, public health, and other local
agencies, creating a coordinated and effective approach to public safety. The Dubuque Fire
Department contributes to the safety of the public not only through emergency response efforts
but also through our commitment to excellence, community education, and collaboration,
ensuring that the Dubuque community remains as safe as possible at all times.
Dubuque Regional Airport’s highest priority is to provide safety and security to public, tenants
and staff using DBQ facilities for entering the global network of general aviation, commercial
airline travel and commerce. This is achieved through physical monitoring, advancements in
technology and the close adherence to Federal Laws and Regulations.
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Passenger and staff safety are achieved using physical screening, baggage screening, remote
monitoring, and access control. These protocols are derived through frequent training and
inspections to ensure Dubuque is following regulations set forth by the Federal Aviation
Administration (FAA) and the Transportation Security Administration. (TSA).
Facility safety is closely monitored by highly trained airfield operations, aircraft rescue
firefighting, public safety, airfield maintenance, airfield ground handlers and administration staff
and airfield tenants to mitigate areas of concern using equipment, frequent safety inspections,
and building strong relationships with other City Departments directly through Dubuque Police,
Fire, Health, Dispatch as well as other city departments and numerous mutual aid and outside
safety organizations.
Airport safety and security is a global priority and achieved only when there is great cooperation
between staff, associates, and the traveling public.
The City of Dubuque's Public Works Department has a critical role in public safety through
disaster response, community protection, and various supporting operations.
Disaster response from Public Works ensures roads are cleared from debris, snow and ice, low
hanging or downed wires for the community and Police and Fire to navigate to and from
emergency situations as they arise. These operations continue as needed without regard to
weekends, or holidays. Staff in Public Works also ensure traffic signs, lights, and signals are
back up and running post-storms, accidents, or other incidents.
Community protection comes through operating and monitoring the flood control system that
prevents the Mississippi River from inundating the community during high water events and
keeps the storm water system free of debris. Part of this system includes the Bee Branch storm
water system designed to prevent water from backing into community homes. Public Works
oversees the maintenance of the city-wide network of storm water and sanitary sewer pipes
throughout the city to make sure they are functioning properly and in compliance with the
consent decree. Additionally, Public Works oversees the curbside collection of trash, recycling,
and organics from residential properties to keep the community free from disease and vector
control. Staff also operate the landfill to ensure proper disposal and diversion of materials
collected both inside and outside the community.
Other supporting operations include maintaining Police fleet and Fire Apparatuses for
operational readiness. Fleet services division within Public Works also maintains The Jule buses
used to carry community members to various locations for appointments and groceries. Staff
and fleet within the field operations division have also been used to barricade community events
and even Presidential visits coordinated with Police and Fire for the safety of those attending.
Public Works does not undergo all these operations single-handedly, though. Public Works
partners with Engineering, Housing, Police, Fire, Water Resource & Recovery Center, Water
Department, Health Services, Parks Division, and others every day to accomplish these
operations for public safety.
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The Transportation Services Department plays a major role in keeping the community safe.
Whether it is daily riders on The Jule or downtown shoppers utilizing the public parking system,
The Transportation Services Department strives to ensure a safe and pleasant experience. The
Jule has upgraded our cameras systems, increased driver training, and identified additional
support during peak passenger hours. The Jule strives to be on time and accessible to the
community to allow passengers to reach their final destinations, including critical medical
appointments, places of employment, and grocery stores. The Transportation Services Parking
Division is in the middle of a system update for off-street and on-street technology. To promote a
safe experience in the parking ramps, new lighting has been installed in a majority of the ramps
along with updating camera systems. The Transit and Parking teams monitor all weather
conditions to allow for clear parking locations along with safe driving conditions.
Cybersecurity is the cornerstone of the city's Information Technology framework, safeguarding
sensitive data and protecting critical systems from cyber threats. With the rise in cyberattacks,
robust cybersecurity measures and incident response are essential to maintain public trust and
ensure the uninterrupted operation of city services. IT utilizes advanced firewalls, encryption
techniques, and intrusion detection systems to prevent unauthorized access and mitigate
potential breaches. Regular monitoring, security audits and vulnerability assessments further
bolster the city's defenses, ensuring that any weaknesses are promptly addressed.
Security cameras are a crucial component of the city's safety infrastructure, providing real-time
surveillance and acting as a deterrent to criminal activity. IT supports the network and system
used for high-definition cameras with advanced features allowing law enforcement agencies to
monitor public spaces more effectively. A robust network enables seamless data sharing and
analysis across departments assisting precision policing, investigations and enhancing public
safety.
IT infrastructure is integral to the efficient operation of emergency management services,
including the 911 dispatch center, police, sheriff, and fire/EMS departments. Advanced
communication systems ensure that emergency responders can quickly and accurately
coordinate their efforts, reducing response times and improving outcomes. IT support extends to
the maintenance of critical databases, such as criminal records and emergency contact
information, which are essential for informed decision-making during crises. Additionally, IT
systems facilitate the integration of various integrated emergency management tools, such as
geographic information systems (GIS), mobile in-car computers, EMS cardiac monitors, body
cameras and real-time incident reporting, further enhancing the city's ability to respond to
emergencies and keep personnel safe. Support is provided for all emergency operations center
events.
The resilience of the city's IT infrastructure is critical in maintaining uninterrupted service delivery
and ensuring the safety of residents. Fiber optic connectivity and redundancies are key
components of this resiliency, providing high-speed, reliable internet and network connections
and minimizing the risk of outages. By implementing redundant systems and backup protocols,
IT can quickly recover from equipment failures or cyberattacks, ensuring that critical services
remain operational. This resilience not only enhances the efficiency of city departments but also
fosters public confidence in the city's ability to manage and respond to emergencies. The use of
cloud-based solutions and virtualization technologies enables seamless scalability and flexibility,
allowing city departments to adapt to changing needs, demands and priorities.
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Ultimately, the primary goal of IT infrastructure in city departments is to enhance the quality of
life for residents by providing reliable, efficient, and secure services. Information technology is a
critical enabler of public safety and the efficient operation of city departments. Through
cybersecurity measures, equipment replacements, and support for emergency management, the
city’s IT infrastructure enhances the overall resiliency and service delivery of the city. By
maximizing uptime and operational efficiency, IT systems ensure that residents receive the
highest quality of service, contributing to a safer city.
The Parks and Recreation Department maintains a robust park system and offers recreational
program opportunities that give individuals and families access to many opportunities for their
free time to enjoy life. Our parks and trails offer many benefits. They provide a place where
people of all ages can be active leading to reduced stress and improved physical and brain
health and well-being creating a higher quality of life and extending life. Time spent in nature
positively impacts mental health by increasing cognitive performance and well-being and
alleviating illnesses such as depression, attention deficit disorders, and Alzheimer's.
Parks and recreational facilities and programs provide places where neighbors, friends, and
families can meet, which improves community connections. This counters social isolation by
connecting people with each other through festivals, parades, fundraisers, social events,
performing arts, tours, and other programming. Special places like the Miracle League facilities
in Veterans Park are accessible to all ages and abilities, especially those with disabilities. These
are safe places for people to play and exercise away from busy city streets.
The Parks Division is on the forefront of our communities’ emergency response. One example is
our forestry tree crew that keep the city’s extensive tree network trimmed, removes dead trees,
and clear streets of tree debris on a daily basis and in storm responses to windstorms, ice, and
heavy snow weather events. Parks Division employees are called upon to serve during heavy
snowfall as a secondary snow crews aiding Public Works in the clearing of streets and
sidewalks. Parks also partners with Dubuque Trees Forever to replace and add trees to the
urban forest reducing heat islands and adding to community beautification. Much of Dubuque’s
beauty is captured by its forested bluffs, tree lined streets, and colorful foliage displays in the fall.
Active recreation such as playgrounds, hiking and biking trails, sports fields and courts, splash
pad, and swimming pools are places to run off steam and burn excess energy in a positive way.
Access to parks and recreation opportunities has been strongly linked to reductions in crime and
to reduced juvenile delinquency and vandalism. Strong community engagement and support of
these parks and recreational facilities create a sense of pride in our places and spaces, places
you want to share when someone comes to visit. Examples of this include the skatepark and
renovated volleyball/pickleball courts at Flora Park or the recently renovated Comiskey Park.
They are a tangible reflection of the quality of life of our community and provide an identity for
our community. Extensive planting and maintenance of the many public flower beds and
baskets and landscaped areas throughout the community such as the Riverwalk, Main Street,
and Bee Branch Greenways make Dubuque a very special place to live, work, and play.
The City Attorney's Office facilitates the activities of other departments and supports the Mayor
and City Council. Examples related to public safety include:
•Enforcement (Building codes, nuisance codes, animal control codes, zoning codes,
traffic codes, simple misdemeanor codes)
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•Search warrants
•Petition/Abandoned properties
•Review of contracts, specifications, and insurance which result in public
improvements impacting public safety
•Training
•Consultation
One major crime prevention tool is access to a living wage job. Economic Development
supports the creation of housing in our walkable downtown neighborhoods. Walkable
neighborhoods often feature better lighting, crosswalks, and traffic-calming measures, reducing
the risk of accidents and enhancing overall safety. The presence of more pedestrians can also
deter crime, as streets are less likely to be desolate and more likely to have “eyes on the street.”
In addition, all of our development agreements now require the developer to install exterior
security cameras on their buildings and to register for the Secure Dubuque Personal
Surveillance System program. In the event a crime occurs in the area, footage from the system
could be of assistance to the department, increasing the efficiency of the investigation - however,
the property owner reserves the right to decline access to their system at any time.
Aside from being a welcoming place for residents that may have nowhere else to turn, libraries
help promote psychological safety, brain health, social and emotional safety to members of our
community across all demographics.
The library can be a hub for all members of our community to expand their understanding of the
world around them, learn something new about an interest or community they've never
experienced before, and simply be a warm, cool, or dry, place to spend a day out of the harsh
Midwest swings of weather. We also can help provide economic safety and support for
community members that want to stay informed and entertained by borrowing library materials
and utilizing library resources.
The Engineering Department promotes the health, safety, and welfare of ALL through sound
engineering principles, practices, and partnerships applied to the planning, design, maintenance,
and preservation of the City's infrastructure and property.
The activities the department is involved include street design, stormwater management,
sanitary sewer design, traffic engineering, security cameras, fiber optic design and expansion,
right of way management, sidewalk and trail design, bridge design, retaining wall design and
flood protection through the design of flood walls and levees that protect the city from flooding.
Some of the recent efforts to improve health and safety has been construction of the Bee Branch
Greenway Project to eliminate flooding in over 1300 homes, the construction of multiple
roundabouts to improve traffic flow and reduce the possibility of major injuries at those
intersections, ADA pedestrian ramp upgrades to allow all people access to the sidewalk network,
and expansion of security cameras around the city to help in traffic safety and assist police.
Through all these activities, the department is following state and federal design standards to
ensure proper design and maintenance occurs. The engineering department works with many
city departments and outside agencies working in partnership to coordinate this work and ensure
the public’s safety. Protection of the public is paramount to what the engineering department
does.
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The Office of Community Impact enhances the safety and well-being of Dubuque residents by
fostering community engagement, providing essential support services, and addressing barriers
that lead to instability.
The Equitable Fine and Fee Program in partnership with utility billing and other internal
departments address financial hardship from escalating into crises by offering alternative
payment options or community service alternatives. By ensuring that penalties do not
disproportionately impact low-income or marginalized residents, we help individuals maintain
housing, employment, and overall stability—reducing the risks associated with financial
insecurity.
The AmeriCorps program strengthens safety by fostering social and emotional competencies
in K-12 students. By teaching self-awareness, emotional regulation, and responsible decision-
making, AmeriCorps members equip youth with the skills needed to navigate challenges
constructively. This proactive approach reduces behavioral issues, prevents violence, and
creates safer schools and communities.
The Multicultural Family Center (MFC) provides psychological safety and a deep sense of
belonging for all community members. As a welcoming and inclusive space, the MFC offers
culturally responsive programming, mentorship, and leadership development—helping
individuals build confidence, establish meaningful connections, and feel secure in their
community.
Additionally, the Office of Community Impact volunteer initiatives mobilize residents to
support projects that strengthen neighborhood resilience and public safety. The Adopt-A-
Spot initiative encourages individuals, businesses, and community groups to take ownership of
public spaces by maintaining parks, streets, and neighborhoods. Reducing litter, improving
landscaping, and creating well-kept environments, will deter crime and promote community
pride. Research shows that well-maintained spaces experience lower crime rates, as visible
community care signals vigilance and discourages vandalism or illegal activity.
Another key aspect of our commitment to public safety is the collaboration with the Dubuque
Police Department through the Chief’s Forum. This partnership and collaboration strengthens
communication, builds trust, and ensures that community voices inform policing strategies.
Fostering transparency and cooperative problem-solving contributes to safer neighborhoods and
a more connected Dubuque.
The Housing and Community Development Department contributes to public safety through
a combination of housing assistance, code enforcement, and health-focused initiatives. Assisted
Housing Programs provide stable, affordable homes for low-income families, seniors, and
disabled residents, reducing the risks associated with housing instability and homelessness. By
administering Housing Choice Vouchers and project-based assistance, the department ensures
safe living environments for vulnerable populations while promoting self-sufficiency. Additionally,
rehabilitation and home purchase programs offer loans to income qualified homeowners and
buyers, allowing them to maintain and improve their properties, preventing deterioration that
could lead to unsafe conditions.
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The department’s Inspection and Construction Services division plays a key role in public safety
by enforcing building codes, inspecting rental properties, and addressing nuisance violations.
Through regular rental property inspections, construction permitting and inspections, and code
enforcement, they mitigate risks such as structural hazards, fire dangers, and sanitation issues.
These efforts extend to vacant and abandoned property licensing and inspections, ensuring that
neglected structures do not become safety threats. In addition, the Lead and Healthy Homes
programs proactively reduce exposure to lead-based paint and other health risks, particularly for
children and older adults.
Money from the Community Development Block Grant (CDBG) program further supports public
safety by funding essential housing, economic development, neighborhood improvement, and
public facility projects. In housing development, CDBG funds assist in homebuyer programs,
homeowner rehabilitation, and provides the grant match for lead hazard reduction efforts,
ensuring that low- and moderate-income families have access to safe, well-maintained homes.
Economic development initiatives, such as the Microenterprise Assistance Program, provide
financial and professional support to small business owners, fostering economic stability in the
community.
Neighborhood and community development programs funded by CDBG include zoning
enforcement and neighborhood recreation programs designed to enhance public spaces, reduce
crime, and provide safe activities for at-risk youth. Investments in public facilities, such as low-
and moderate-income area park upgrades and the Lincoln Wellness Project, improve community
infrastructure and create safe, accessible recreational spaces. Additionally, CDBG funding
supports local nonprofit organizations through a revolving fund, helping to ensure resources are
available for services that benefit vulnerable populations.
By integrating these functions, the Housing and Community Development Department ensures
that residents live in secure, well-maintained homes., contributing to a healthier and more
resilient community.
Human Resource Department staff conduct post offer, pre-employment background checks,
including but not limited to driving record checks, criminal background check, drug screening (as
required/appropriate for positions) to ensure that City staff providing services to residents have a
demonstrated ability to do so safely. These checks also occur post-employment where
permissible.
Human Resource Department staff in the development and learning offerings do focus on best
practice processes and procedures, including safe operation of equipment and tools for the
employee and the public.
The City Clerk’s Office provides administrative support during the civil service hiring process
for police and fire departments by coordinating exams and preparing candidate lists, playing an
integral part in fulfilling positions in these critical public safety roles.
The City Clerk’s Office oversees many license and permit processes that require background
checks, including applicants for solicitor licenses, taxi driver permits, and retail alcohol licenses
—businesses that frequently interact with the public. By coordinating background checks with
the police department, our departments ensure that individuals applying for these permits have
no criminal history or other issues that could pose a risk to public safety.
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The City Clerk's Office oversees the special event permit process, which involves coordination
with departments including the city's safety coordinator, health department, police department
and fire department, to ensure that community events are executed safely.
Safety is a top priority for residents, and the City of Dubuque is dedicated to protecting the
health, safety, and well-being of both employees and the public. The Finance Department plays
a key role in fostering a strong safety culture by ensuring compliance with state and federal
regulations while supporting city departments in maintaining safe operations.
Through the City's Safety Committee, we lead the development and implementation of city-wide
safety policies and best practices, identifying corrective actions, preventive measures, and
training needs. Our goal is to instill a culture of “If you see something, say something” in all
aspects of safety.
Additionally, the Incident Review Team conducts thorough investigations of workplace incidents
and near misses, identifying root causes and recommending corrective actions to prevent
recurrence. Meanwhile, the Safety Audit Team proactively assesses workplace conditions,
identifying potential hazards and ensuring compliance with safety protocols to protect
employees, facilities, and the public.
Together, these efforts equip employees with the knowledge and resources to prevent accidents
and enhance overall safety. By promoting a proactive approach to hazard identification, injury
prevention, and risk management, we help create a safer work environment for all. Our
collaborative commitment ensures that safety is not just a policy but a core value that protects
both employees and the community we serve.
Public safety is at the core the Water & Resource Recovery Center's (WRRC) mission. The
WRRC plays a vital role in protecting the health and well-being of the community. This is done in
multiple ways.
The WRRC ensures the safe and effective treatment of wastewater. Every day, the WRRC
manages and treats millions of gallons of wastewater, removing contaminants and pollutants
before returning clean water to the environment. This prevents the spread of waterborne
diseases, protects drinking water sources, and supports the overall health of the Mississippi
River ecosystem. This essential function safeguards both public health and the region’s natural
resources.
The WRRC industrial pretreatment program helps local businesses comply with environmental
regulations, preventing hazardous discharges that could endanger workers, emergency
responders, and the wider community.
The WRRC manages the City’s Fats, Oils, and Grease (FOG) Program designed to prevent
FOG from entering the sewer system, where it can accumulate and cause blockages. When a
blockage occurs, it can lead to sanitary sewer overflows, resulting in untreated wastewater
spilling into streets or backing up into homes and businesses. By working with restaurants,
businesses, and residents to properly dispose of FOG, we help prevent costly and hazardous
sewer backups that could pose serious health and safety risks to citizens.
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The WRRC Environmental Lab provides water testing services for the Water Department to help
ensure that the drinking water they produce is safe for human consumption. By conducting
critical water quality analyses, we help verify that the city’s drinking water meets regulatory
standards and is free of harmful contaminants. This collaboration plays a direct role in protecting
public health and ensuring that Dubuque residents have access to clean, safe drinking water.
Ultimately, the WRRC is more than just a treatment facility—it is a public health guardian and a
key partner in the City’s overall safety strategy. By maintaining high standards for wastewater
treatment, infrastructure resilience, and interdepartmental cooperation, we ensure that Dubuque
remains a safe, healthy, and thriving community.
The City's Communications Office contributes to the safety of the community in a variety of
ways, ranging from emergency responses to proactive safety education campaigns.
Communications staff manage the City's main communication channels to reach residents
(social media, website, videos, publications, public access television, signage, and more) and
coordinate media relations to amplify messaging through traditional media outlets. The
Communications Office also provides communications support to the City's key public safety
departments: police, fire, emergency communications, health services, housing and community
development, engineering, and emergency management. Staff work with those departments to
promote safety initiatives and programs, develop communications plans and campaign, and
even recruit new staff to those departments. Communications staff also provide public
notification support to the City water department during boil water advisories/orders and major
water main breaks
Additionally, the Communications Office is involved in crisis communications for the organization
and is a critical part of the City's emergency management and operations plans.
Communications staff are responsible for one of the primary emergency operations center
(EOC) roles: public information. The public information officer is part of the City's EOC team and
all Communications staff provide support to the public information function of the EOC when it is
activated by assisting with public alerts and messaging during emergencies, media relations,
and outreach during recovery efforts following major incidents. The Communications Office also
manages the City's use of the AlertIowa emergency notification system which is used during
emergencies to reach residents by phone, text, email, and through the AlertIowa app.
The Communications Office includes the City's GIS Office, which provides overall management
the City's GIS system and the hundreds of layers of data it contains. GIS is a critical tool used by
all City departments, including public safety applications by police, fire, health services, housing
and community development, and more. Those departments rely upon the data within the City's
GIS and mapping functions it provides to respond to emergencies, develop response/patrol
policies and strategies, visualize data for analysis and planning, monitor critical infrastructure
and assets, track incident response efforts, and more. GIS provides the data for data-driven
decision-making related to safety.
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The City of Dubuque Department of Equity and Human Rights plays an important role in
promoting public safety in the community. First, Equity and Human Rights works directly with the
Dubuque Police Department to build relationships between the community and the police
department and to ensure that the concerns of community members regarding the police are
heard. For example, the Chief of Equity and Human Rights participates in the Chief of Police’s
Forum, in which City staff and residents discuss current issues of concern.
Another way the Department of Equity and Human Rights directly contributes to public safety is
by assisting residents who believe they have been discriminated against or that their rights have
been violated. Public safety is not limited to physical safety; it also includes feeling that your
rights are protected and your dignity as a person is respected. One of the important roles of the
Department of Equity and Human Rights is helping residents complete complaint intake forms
and assisting them in finding the right place to file their complaints. These complaints include
situations in which residents believe they have been discriminated against by an employer or a
business, or when they believe their rights have been violated by a City employee other than a
police officer. The Department of Equity and Human Rights also assists in facilitating mediation
in conflicts between tenants and landlords, neighbors, or others who seek such assistance.
The City of Dubuque’s Equity and Human Rights Commission, which is appointed by the City
Council but works in collaboration with the Department of Equity and Human Rights, also
contributes to public safety by investigating issues of concern in the community related to human
rights and discrimination. The Commission also provides the community with public information
about these issues.
Finally, the Department of Equity and Human Rights indirectly contributes to public safety by
working with City staff and other City departments to ensure that all people are treated in a
welcoming and respectful manner and that all residents have fair access to eligible City services.
For example, the Department coordinates Intercultural Competency and other trainings for City
staff that help create a welcoming and safe environment for City employees and similarly foster
welcoming and safe interactions with the public. As another example, the Office of Equity and
Human Rights works with the City’s Communication Office and other departments to ensure that
important public announcements and other public information are translated into languages such
as Spanish and Marshallese. These announcements often involve public safety or public health,
and providing people with access to information promotes public safety in general.
Road and Infrastructure
Following the opening of the Southwest Arterial in 2020, the opening of the new Highway 20
interchange at Swiss Valley Road in 2021, the reconstruction of Chavenelle Road, the
reconstruction of North Cascade Road, the resurfacing and reconstruction of the Northwest
Arterial, and the resurfacing of over 5 miles of streets by Public Works crews in 2023 and over 8
miles in 2024, the City will be further pursuing street improvements. The Fiscal year 2026 budget
recommends that Public Works pave 10 miles of streets.
The Iowa Department of Transportation is beginning to study the eventual full reconstruction of
the intersection of Highway 20 and the Northwest Arterial, including the closure of the southern
leg of the intersection, to greatly improve traffic flow. They have submitted an over $15 million
project to the IDOT commission for consideration which includes an over $5 million local match.
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The City received a grant for an over $3 million planning effort followed in 2024 with award of an
over $37 million federal infrastructure grant application build a railroad overpass at 14th Street
and improvements to Elm Street and 16th Street, with multiple intersection improvements all in
the complete streets format. In 2024, the City received a $25 million federal grant to construct
the over $40 million project.
In partnership with the US Army Corps of Engineers, the City will be improving the Mississippi
River floodwall in the South Port of Dubuque to better protect the sanitary sewer force main from
river traffic accidents.
The five-year CIP includes $8,170,000 to begin the Central Avenue and White Street
improvements project.
Phase II of Comiskey Park Development is included for $1,697,000.
The City will spend approximately $50 million to improve the Catfish Creek Sanitary Sewer
Shed, replacing and upsizing much of the 70-year-old sanitary sewer system and adding a major
sanitary sewer lift station. This will allow the City to further eliminate polluting sanitary sewer
overflows and be prepared for future growth to the West. The goal is to be eligible for tens of
millions of dollars in federal infrastructure dollars to support this project.
Between January, 2025 and December, 2029 the City has budgeted over $131 million to
upgrade and maintain existing sanitary sewers and to install new sanitary sewers opening
up areas of the community for development and making sure existing areas of the community
continue to have high quality sanitary sewer service.
The City will also be spending almost $6 million to replace over 500 private lead service lines
with a 49% Iowa Finance Authority forgivable loan program to assist low-income residents, with
the 51% balance being absorbed by the City.
The City capital improvement budget includes $9.6 million to do Granular Activated Carbon Filter
Rehabilitation to assist with PFAS mitigation. This is in addition to creating a new deep well at a
cost of approximately $4.5 million. The FY26-FY30 Water Department CIP is a total of
approximately $27.8 million. The City is anticipating receiving some settlement funds from the
PFAS litigation the City joined, but as of the submittal of the budget we do not know the amount.
Economic Development
The City will be investing in the downtown, the Central Avenue corridor, the West End industrial
parks, and improving Schmitt Island access.
The CIP includes over $23 million to complete Five Flags Building improvements.
One dramatic success story for the Mayor and City Council is addressing the need for additional
housing options. In 2022, the Greater Dubuque Development Corporation conducted a study
that showed the City of Dubuque was short over 1,000 housing units. At the same time
population growth is a top priority with a huge demand for workforce.
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The Mayor and City Council adopted financial incentives in the summer of 2022 to encourage
housing development. The City of Dubuque currently has over 2,400 developable single-
family lots and multi-unit residential rental units that have either been completed, are
under construction, or have been approved for development.
Dyersville Events has acquired the Field of Dreams site and has broken ground on a new almost
$40 million baseball stadium for major league baseball games, concerts, business meetings and
other events. The Field of Dreams has also secured financing for a robust youth baseball and
softball complex breaking ground in 2025. Opening in the 2026 baseball season this will host
over 1,000 baseball and softball teams a year.
This has led to the city approving a development agreement for two new hotels in the Port of
Dubuque and the city has received multiple inquiries about additional hotels.
In December 2024 the University of Dubuque announced the formation of the John and Alice
Butler School of Osteopathic Medicine. This new medical school will be located in downtown
Dubuque with 800 students and over 200 faculty and staff.
Improved Customer Service
A significant customer service enhancement has been the move to automated collection of
refuse carts. This will not only increase customer convenience, but it will improve the
appearance of neighborhoods. The City refuse collection employees are currently required to
handle people’s trash, exposing them to fleas, bedbugs, viruses, and germs. They are also
required to exit and enter the vehicle almost 700 times each day, over 3,000 times a week, and
over 170,000 times a year. This is even in the winter, risking slipping on the ice and snow and
constantly battering their feet, ankles, knees, hips and back.
Identifying and Funding Important Initiatives to Support Employees
In FY24 the Mayor and City Council approved the addition of some new City positions in the
organization to advance important initiatives and meet existing needs. In FY2023, the City
Council approved through amendment two new positions in the Human Resources Department
and a Project Manager position in Parks and Recreation.
During the FY 2023 budget process the following recurring improvement packages creating new
positions was approved:
•Full-Assistant FBO Supervisor at the Airport to ensure supervisory coverage for the
Fixed Base Operations (FBO).
•Full-Time Secretary in AmeriCorps to assist as part of the creation of the new
division.
•Full-Time Secretary in City Clerk’s Office to serve as the main point of contact for
all public inquiries.
•Full-Time Climate Action Coordinator in the City Manager’s Office dedicated to
implementing the 50% by 2030 Community Action and Resiliency Plan.
•Full-Time Grant Analyst in the City Manager’s Office to address the continued need
for grant management.
•Full-Time Public Safety Dispatcher in the Emergency Communication to cover forty
hours of current part-time hours.
•Full-Time Utility Locator in Engineering to address the growing demand for locating
buried City utilities.
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•Seasonal Business Administration Intern in Engineering to assist the administrative
staff with an ever-growing workload.
•Seasonal OSHA Intern in Engineering to update and customize the current
department Construction Safety Manual.
•Seasonal Broadband Intern in Engineering to assist Traffic Operations Center staff
with populating a database of broadband infrastructure.
•Seasonal Finance Intern to assist with large projects and ongoing work.
•Four Full-Time Firefighters to increase the number of personnel per shift, resulting
in the ability to increase minimum staffing to 24 personnel each day, thereby
staffing a third full-time ambulance crew.
•Three Full-Time Firefighters in increase the available personnel to cover various
leave requirements and help reduce the need for overtime.
•Full-Time Confidential Account Clerk in Housing to help with administrative duties
of the department.
•Full-Time Help Desk Technical Support in Information Services to provide
assistance for the implementation of e-mail for additional uses, help in
implementation of MFA for all, help address the need for backlog of service request
tickets, aid in monthly on-boarding for technology additional WebQA user and
backend support.
•Full-Time User Technology Specialist in Information Services to provide ERP
support.
•Full-Time Chief Security Officer in Information Services to help improve
cybersecurity, manage the on-going complexity of threats, and manage the
network infrastructure (fiber, switches, routers).
•Full-Time maker Space Assistance at the Library to provide full-time coverage for
Maker’s Space.
•Full-Time Patrol Officer in Police added as part of the 20 officers by 2022.
•Seasonal Community Resource Officers in Police to help continue the success the
program has had in both the value to the public and as a recruiting tool for the
department.
•Full-Time Sanitation Driver in Public Works added due to the increase in lane miles
to plow and employee turnover rate.
•Part-Time Secretary in Public Works added to help with coverage issues during
lunch, vacation, and sick leave.
•Full-Time Landfill Equipment Operator in Public Works to support operations in the
Agency’s Regional Collection Center.
•Four Full-Time Bus Operators in Transportation Services to minimize employee
turnover, associated, cost, and offer more consistency in schedules for residents.
In the FY2024 budget, the following personnel additions were made:
•two Police Officer positions were approved as part of the crisis intervention team
and enhancements to the Secondary Responder Model.
•at the Fire Department, there was addition of a Firefighter position and an
additional Administrative Assistant.
•In 911 Emergency Communications, there was the addition of a full-time
Dispatcher position.
•at the Airport, more Fixed Based Operator Line Service hours
•in Housing, elimination of a part-time position and creation of a full-time
Combination Inspector.
•an additional 910 hours of site supervision at the Multicultural Family Center.
•a new full-time Confidential Account Clerk in Parks and Recreation s.
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•upgrade of a part-time Circulation Lead Library Assistant to a full-time position at
the Library.
•a Data Scientist position in Public Works.
•a part-time AmeriCorps Position in the Engineering Department.
•two intern positions in the Engineering Department,
•a full-time Water Distribution Maintenance Worker in the Water Department,
•elimination of a Water Meter Repair Worker.
•creation of a Water Meter Foreman position in the Water Department.
•the creation of the position of Assistant Water and Resource Recovery Manager
position.
•creation of the Industrial Pretreatment Coordinator position at the Water and
Resource Recovery Center.
•creation of a part-time intern position in the Public Works Department.
After approval of the FY24 budget there were other personnel changes as follows:
•added a civilian Fire Inspector
•Transportation added Laborer +1.0 FTE; eliminated part-time Laborers -0.55 FTE;
increased Dispatcher from 0.1 FTE to 0.5 FTE; added 0.34 FTE to the Parking
Meter Checker.
•Engineering added Engineering Technician +1.0 FTE; eliminated Lease
Management Intern -0.25 FTE; added Confidential Account Clerk +1.0 FTE, three
limited term Engineering Intern positions ended -0.32 each.
•Water & Resource Recovery Center had the addition of Maintenance Supervisor
0.25 FTE.
•Public Works eliminated Assistant Public Works Director -1.0 FTE; added Fleet
Maintenance Procurement Specialist +1.0 FTE; eliminated Stock Clerk -1.0 FTE;
part-time Administrative Assistant was changed to full-time +0.33 FTE; added Field
Supervisor +1.0 FTE.
•Office of Prosperity and Neighborhood Support part-time Administrative Assistant
was moved to full-time +0.34 FTE.
•Communications Office eliminated Communications Assistant -0.50 FTE; added
Communications Assistant +1.0 FTE. Airport eliminated Marketing Coordinator
-0.70 FTE.
•The Finance Department eliminated Finance Director -1.0 FTE; eliminated Budget
Director -1.0 FTE; added Finance Manager +1.0 FTE; added Budget Manager +1.0
FTE; eliminated Budget/Financial Analyst -1.0 FTE; eliminated Accountant -1.0
FTE; added Payroll Systems Analyst +1.0 FTE; added Project Manager 0.50 FTE,
added Finance Intern positions 1.50 FTE.
In the FY25 budget, you approved the addition of 2 full-time positions in the Fire Department.
There is an additional Captain to serve as a Field Training Officer/Safety Officer and a Bureau
Chief position in EMS.
After adoption of the FY2025 budget you approved the addition of a Project and Facilities
Manager position in the Public Works Department.
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The FY 2026 budget recommendation includes a reorganization in the Engineering Department
that includes a slight increase in full-time equivalent positions, but is more an effort to reorganize
the work being performed with the correct titles and compensation. This has a FY26 cost of just
over $40,000. A reorganization in the City Manager’s Office eliminates a full-time position and
takes the currently vacant Director of Strategic Partnerships position from part-time to full-time.
This change has no increase in costs. The temporary position in the Sustainability Office was set
to expire in June 2025 and that position is extended through June 2026.
Opportunities for Grants and Forgivable Loans
The City of Dubuque has had tremendous success pursuing federal and state grants. To
implement these grants the City has invested in making projects “shovel ready” and has
budgeted for the local match required to receive the grants. While this is expensive for the city
the benefits to the community by having important projects completed with mostly federal and
state dollars is tremendous.
Teri Goodmann recently retired as the City of Dubuque Director of Strategic Partnerships and
the city has executed a service agreement with Teri. Over the last 25 years the City has received
or partnered with others to receive close to one billion dollars of Federal and State grants.
The City Manager’s staff in the Office of Strategic Partnerships work to assist our city
departments, community partners, and non-profits seek competitive grant funding at the state
and federal levels. Other work includes advocacy for the city with county, state and federal
elected officials and staff.
Staff continue to convene and engage with more than 180 individuals from more than 20 local
organizations to identify, apply for, and secure grants to address local needs. As part of this
process, staff continues to work with numerous community non-profit leaders to help them
identify funding opportunities.
The City of Dubuque committed all of the ARPA money by December 2024 as required by law in
the following projects.
Police Patrol Vehicles $224,122
Police Vehicle Accessories $112,938
Grand River Center Equipment Acquisition $84,740
Public Works Street Overlay – Additional 5 Miles $850,085
Flood Control Levee Certification $177,618
Purina Drive Floodwall $102,888
Five Flags Spotlights $123,186
Operating GRC Equipment $187,235
Five Flags Sound Equipment $69,886
GRC Chairs $18,440
Eagle Valley Park $290,105
Westbrook Park Development $287,492
English Ridge Park Development $287,345
Parks Resurface Tennis Courts $50,000
Summary of Uses Rescue Plan Amount
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Jefferson Park Retaining Wall $302,278
Eagle Point Park Retaining Wall $59,195
Parks Retaining Walls $5,800
Eagle Point Park Building and Structures Assessment $1,301
Comprehensive Parks Master Plan $129,977
Eagle Point Park Rest Room Renovation $40,886
Flora Park Asphalt Paving $9,114
Five Flags table replacement $50,484
Five Flags Arena Pipe, Drape and Barricades $28,869
Flora and Sutton Pool Heaters $17,913
Parks Maintenance $95,442
Parks Maintenance Headquarters Storage Area $9,808
Parks Irrigation to Planters/Flower Beds $52,280
Re-imagine Comiskey $46,689
Parks Natural Resources Plan $60,000
Pets in Parks Signage and Drinking Fountains $19,820
Plan Highway 20 Roses $6,379
Travel Dubuque 501(c)(6) Loss $270,427
Utility Bill Assistance $52,399
Business, Non-For-Profit, and Arts Groups Assistance $62,774
Fiber Backbone Project $1,078,083
Fiber East-West Redundant Loop $216,141
Old Mill Road Lift Stations & Force Main Improvements - Design $2,311,288
Kerper Blvd Lift Station $1,798,266
$9.4 Green Alleys $348,000
Schmitt Island Sanitary Improvements $218,380
Center Place Alley Sewer Reconstruction $21,968
PERV PAVE BB RR Sponsor $350,032
W&RRC UV Disinfection System $216,818
W&RRC Sludge/Grease Grinders $18,182
W&RRC High Strength Waste Receiving and Storage $186,750
Terminal Street Project $670,645
Water SCADA System Upgrade $745,893
Orchard Drive Water Main Replacement $339,654
Chesterfield Drive Water Main $47,331
Public Lead Water Line Replacement $63,178
North Cascade Water Main $23,896
Briarwood Sub Main Extension $106,324
Fiber Purchase $478,200
Police Patrol Vehicles $178,060
Police Vehicle Accessories $33,940
Fire Ambulance Replacement $415,000
FY 2024 Fire Pumper Replacement $450,000
Summary of Uses Rescue Plan Amount
Budget Message
28 Page 31 of 121
Field of Dreams $1,000,000
Asset Management $723,574
Broadway Sanitary Sewer $103,472
Webber Property Development $111,284
E911 Relocation $2,500,000
Data Center $461,747
Public Safety Software $925,708
MFC 2nd Floor $796,043
Bee Branch Interceptor Sanitary Sewer Project $3,340,387
Airport Minimum Revenue Guarantee $350,000
Conduit/Fiber Extension to Public Facilities $1,333,635
Broadband IMON Buildout $372,488
Total ARPA Funded Projects $26,522,282
Summary of Uses Rescue Plan Amount
To Partners:
•Riverview Center received a Transitional Housing Assistance Grant from the Office
on Violence Against Women, Dept. of Justice $575,000
•374 local businesses received Economic Injury Disaster Loans & Grants (EIDL)
from the US Small Business Administration (SBA) $19,805,500
•30 local businesses received Restaurant Revitalization Funds (RRF) from the
US Small Business Administration (SBA) $4,240,794
•PHOENIX THEATRES DUBUQUE, LLC received a Shuttered Venue Operators
Grant (SVOG) from the US Small Business Administration (SBA) $989,658
•Dubuque County Historical Society received a Shuttered Venue Operators Grant
(SVOG) from the US Small Business Administration (SBA) $940,247
•Legion-Aires Drum and Bugle Corps received a Shuttered Venue Operators Grant
(SVOG) from the US Small Business Administration (SBA) $696,794
•The Grand Opera House received a Shuttered Venue Operators Grant (SVOG)
from the US Small Business Administration (SBA) $180,492
•Bell Tower Productions received a Shuttered Venue Operators Grant (SVOG) from
the US Small Business Administration (SBA) $72,335
•Dubuque Symphony Orchestra received a Shuttered Venue Operators Grant
(SVOG) from the US Small Business Administration (SBA) $62,087
•Dyersville Field of Dreams received a grant from the Iowa Economic Development
Authority (IEDA) | Destination Iowa for Tourism & Economic Development
(Stadium) $12,500,000
•Dyersville Field of Dreams received a Tourism & Economic Development grant
from Iowa’s Water Infrastructure Fund (WIF) for Water Infrastructure & Connectivity
$11,000,000
•Cottingham & Butler, Inc. received a grant from Future Ready Iowa | 2022 Child
Care Business Incentive Infrastructure and Slots Awards for the Cottingham &
Butler Project Stork (182 new slots) $3,000,000
•Dubuque Initiatives received a grant from Future Ready Iowa | 2022 Child Care
Business Incentive Infrastructure and Slots Awards for the Dubuque Industrial
Center West Multi-Employer Childcare Center Project (120 new slots) $2,154,800
•Hills and Dales received a grant from the Iowa Economic Development Authority’s
(IEDA) Nonprofit Innovation Fund for the Autism Center for Youth $1,250,000
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•Dubuque/Jackson Counties Habitat for Humanity received a 2022 State HOME
Grant from the Iowa Finance Authority (IFA) $1,066,895
•Holy Family Catholic Schools: Saint Joseph the Worker Early Childhood received a
grant from Future Ready Iowa | Child Care Challenge for Child Care Slots
(creation/opening) $850,000
•Dubuque Dream Center received a grant from Future Ready Iowa | Child Care
Challenge for Child Care Slots (creation/opening) $750,000
•Holy Family Catholic Schools: Holy Ghost Early Childhood Center received a grant
from Future Ready Iowa | Child Care Challenge for Child Care Slots (creation/
opening) $750,000
•Hirshbach Motor Lines, Inc. received a grant from Future Ready Iowa | Child Care
Challenge for Child Care Slots (creation/opening) $630,000
•Romper Room Child Care Center received a Future Ready Iowa | Child Care
Challenge grant for Child Care Slots (creation/opening) $452,591
•Holy Family Catholic Schools: Our Lady of Guadalupe Early Childhood received a
Future Ready Iowa | Child Care Challenge grant for Child Care Slots (creation/
opening) $345,000
•The Dept. Of Economic Development was awarded a grant from the Iowa Dept. of
Cultural Affairs for Community Initiatives & Creative Projects $205,000
•Voices received a grant from the Iowa Economic Development Authority (IEDA) for
Accessible Restrooms $100,000
•Aspire Home Daycare LLC received a Future Ready Iowa | Child Care Challenge
grant for Child Care Slots (creation/opening) $78,300
•Crescent Community Health Center received a grant from the Iowa Cancer
Consortium for a Community Health Worker $75,000
•Four Mounds Foundation received a grant from the Future Ready Iowa | 2022
Employer Innovation Fund for Job & Skills Training $50,000
•Friends of St. Mary's were awarded a grant from the Future Ready Iowa | 2022
Employer Innovation Fund for Job & Skills Training $50,000
•Stonehill Franciscan Services received a grant from the Future Ready Iowa | 2022
Employer Innovation Fund for Job & Skills Training $46,000
•Mercy Health Services-Iowa, Corp. received a grant from the Future Ready Iowa |
2022 Employer Innovation Fund for Job & Skills Training $44,760
•Heritage Works received an American Rescue Plan Humanities Grant for Heritage
Works Job Support $18,000
•Dubuque County Historical Society received an American Rescue Plan Humanities
Grant for the Mathias Ham Historic Site Programs and Expanded Marketing
Campaign $18,000
•Hills and Dales Child Development Center received a grant from the Future Ready
Iowa | 2022 Employer Innovation Fund for Job & Skills Training $16,165
•Julien Dubuque International Film Festival was granted an American Rescue Plan
Arts Grant – Organizations for JDIFF Contract Position Support $15,000
•Dubuque Museum of Art received an American Rescue Plan Arts Grant –
Organizations to Diversify engagement, build equity, add capacity $15,000
•Heritage Center received an American Rescue Plan Arts Grant – Organizations for
2021-22 Live at Heritage Guest Artist Fee Subsidy $10,000
•Grand Opera House received an American Rescue Plan Arts Grant –
Organizations for Contracted Artists $7,500
•Bell Tower Theater was awarded an American Rescue Plan Arts Grant –
Organizations for Artist Stipends $7,500
•Creative Adventure Lab, Inc. received an American Rescue Plan Arts Grant -
Organizations for Supporting Staff and contract artists $7,500.
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•Dubuque Symphony Orchestra received an American Rescue Plan Arts Grant –
Organizations for Dubuque Symphony Orchestra Holiday Concert $7,500
•Aspire Home Childcare Network received a grant from the Future Ready Iowa |
2022 Employer Innovation Fund for Job & Skills Training $5,800
•Ellyn Holzhuter Daycare received a grant from the Future Ready Iowa | Child Care
Challenge for Child Care Slots (creation/opening) $5,621
•Thomasin Ringler received an American Rescue Plan Arts Grant – Artists for
Mammalia Series/Public Metal Pours/Studio Exhibit $5,000
•Laura Konecne received an American Rescue Plan Arts Grant – Artists for
Sculptural Pachypodium Vessels $3,500
•Northeast Iowa School of Music was awarded an American Rescue Plan Arts
Grant – Organizations for Office Manager and Business Manager Support $3,500
•Gail Chavenelle received an American Rescue Plan Arts Grant – Artists for
Website for the Future $2,500
•Amy Dunker received an American Rescue Plan Arts Grant – Artists for Rising
Strong $2,500
•Samantha Hilby-Beck was awarded an American Rescue Plan Arts Grant – Artists
for Reengagement of Emerging Artist & Arts Educator $2,500
•Dubuque Chorale received an American Rescue Plan Arts Grant – Organizations
for Artistic Stipends for Two Piano Accompanists $2,500
•Rising Star Theatre Company received an American Rescue Plan Arts Grant -
Organizations for Contracted Artists for 2021 Summer Programming $2,000
BIL Funding
To City of Dubuque:
•2022 RAISE Infrastructure Planning Grant from the United States Department of
Transportation (USDOT) for 14th Street Overpass & 16th Street Corridor, Elm Street
Complete Streets, & Roundabouts $2,280,000
•2024 RAISE Infrastructure Grant from US Department of Transportation to build
the 14th Street Overpass Project exceeds $43,000,000
•Dubuque Regional Airport was awarded a grant from the United States Department
of Transportation (USDOT – FAA) for Solar Panels & Improvements with the
General Aviation Terminal $413,350
•Dubuque Metropolitan Area Transit was awarded a Safe Streets for All grant from
the United States Department of Transportation (USDOT) for transportation safety
planning $394,186.
•The Transit Department was awarded a Low- or No-Emissions Bus Program
(Second Round) grant from the United States Department of Transportation
(USDOT) for EV Buses & Charging Station & Solar Panels $2,359,072
•The Transit Department was awarded a US Dept. Of Transportation (USDOT)
Areas of Persistent Poverty grant to study and analyze the Jule Services & Route
Optimization $225,000
•Dubuque Regional Airport was awarded an Airport Infrastructure Grant from the US
Dept. Of Transportation (USDOT – FAA) for Reconstruction of the outdated
transient aircraft parking apron $2,600,000
Budget Message
31 Page 34 of 121
IRA Funding
To City of Dubuque:
•The Dept. of Parks and Recreation was awarded a U.S. Dept. Of Agriculture
(USDA) – Urban & Community Forestry Grant (UCF) IRA Grant to strengthen the
city’s tree canopy in the most vulnerable and historically disinvested census tracts.
$1,499,978
Misc. Regular Appropriations
To City of Dubuque:
•The City Planning Dept. received a grant from the Iowa Dept. of Cultural Affairs -
Historical Resource Development Program for Dubuque's Black Heritage Survey
$30,000
•The City received a grant from the Iowa Finance Authority (IFA) Destination Iowa
for the development of a Chaplain Schmitt Island Amphitheater $3,000,000
•Received a grant from the Iowa Economic Development Authority/Iowa Tourism’s
Travel Iowa Partnership Program for Communications Campaign/DBQ Arts &
Culture Sector $10,000
•Received a grant from the United States Department of Transportation (USDOT)
Via Community Project Funding (CPF) for Chaplain Schmitt Island Trail Connection
$615,000
•Local Arts Agencies for Subgranting Local Arts Agencies for Subgranting National
Endowment for the Arts - Regular Appropriations $500,000
•Dubuque Police received a COPS Hiring grant from the Department of Justice for
Community Oriented Policing - Brain Health Trained Officers $250,000
•Received a grant for the Granger Creek Lift Station from the Federal Emergency
Management Agency (FEMA) Via Community Project Funding $1,000,000
•Voices & Office of Shared Prosperity and Neighborhood Support (OSPNS)
received a National Endowment for the Arts (NEA) Our Town Grant for Arts
programming & placemaking $50,000.
•Received an Economic Development Administration (EDA) grant from their
Economic Adjustment Assistance (EAA) Program for Bee Branch Gates & Pumps
$7,700,000
•Dubuque Regional Airport received a Small Community Air Service Development
Program (SCASDP) grant from the US Dept. Of Transportation (USDOT – FAA) to
address solutions to renewing commercial air service $1,500,000.
Totals to Date
Grants to the City of Dubuque (Applicant):$33,384,233
Grants/Funds received Community-Wide:
ARPA Directed Allocated Funds: $26,522,200
County ARPA Funds to Community Organizations: $15,743,338
Total Federal, State, & Private Funds: $123,819,444
Total Federal, State, County, & Private Funds: $141,562,782
Budget Message
32 Page 35 of 121
CITY PROPERTY TAX RATE
In the FY2022 City budget that was adopted by the Mayor and City Council in March 2021, there
was a property tax rate reduction of 2.5%, which resulted in no increase in city property taxes for
residential property, and a city property tax decrease for commercial property, industrial property,
and multi-residential property.
In the FY2023 city budget the Mayor and City Council adopted a property tax rate reduction of
1.74% which resulted in a 2.96% increase for the average homeowner.
In the FY2024 city budget the Mayor and City Council adopted a property tax rate increase of
1.96% which resulted in 3% increase for the average homeowner.
In FY 2025, the City levied for $28,233,757 in property tax revenue to support the general
fund and in FY 2026 the budget guidelines would levy for $29,861,901 in property tax
revenue to support the general fund. The FY 2026 budget guidelines call for a 1.38%
increase in the property tax rate, which increases the property tax rate from $9.92638 in
FY 25 to $10.06372 in FY 26, which would be a 3.90% or $33.38 tax increase for the
average Dubuque residential property owner, an increase in property tax for commercial
(1.78%, $74.26), and an increase for industrial (1.71%, $85.68).
% Change $ Change
Property Tax Rate 1.38 %$ 0.14
Property Tax Asking 5.77 %$ 1,628,144.41
Average Residential Payment 3.90 %$ 33.38
Average Commercial Payment 1.78 %$ 74.26
Average Industrial Property 1.71 %$ 85.68
Since 1989, the average homeowner has averaged an annual increase in costs in the City
portion of their property taxes of +1.45%, or about +$9.28 a year. If the State had been fully
funding the Homestead Tax Credit, the increase would have averaged about +$6.62 a year.
For the purpose of this budget, the City Council is only considering the FY2026 property tax rate.
The FY2027 - 2030 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 FY2027.
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 City Tax Rate % Change in Tax Rate
FY 2026 $ 10.0637 1.38 %
FY 2027 $ 10.8332 7.65 %
FY 2028 $ 11.3046 4.35 %
FY 2029 $ 11.4164 0.99 %
FY 2030 $ 11.6956 2.43 %
Budget Message
33 Page 36 of 121
Fiscal
Year
"City" Property
Tax Askings
% Change in Tax
Askings
% Impact on Avg.
Residential Property
$ Impact on Avg.
Residential Property
FY 2025 $ 28,233,757
FY 2026 $ 29,861,901 +5.77 % +3.90 %$ +33.38
FY 2027 $ 32,770,507 +10.89 % +7.65 %$ +67.99
FY 2028 $ 34,876,908 +6.40 % +4.35 %$ +41.64
FY 2029 $ 35,925,419 +3.00 % +0.99 %$ +9.89
FY 2030 $ 37,531,699 +4.46 % +2.45 %$ +24.67
The State’s residential rollback factor will increase from 46.3428% in 2025 to 47.4316% or
a 2.35% increase in FY 2026. The increase in the residential rollback factor increases the
value that each residence is taxed on. This increased taxable value for the average
homeowner ($91,067 taxable value in FY 2025 and $93,207 taxable value in 2026) results
in more taxes to be paid per $1,000 of assessed value.
For the proposed Fiscal Year 2026, Dubuque has the LOWEST property tax rate as
compared to the eleven largest cities in the state. The highest rate (Waterloo (FY25)) is
119.35% higher than Dubuque’s rate, and the average is 55.48% higher than Dubuque.
Dubuque's recommended FY 2026 property tax rate is $10.06 (increase of 1.38% from FY
2025).
Fiscal Year 2026 City Property Tax Rate Comparison for Eleven Largest Iowa Cities
Rank City Tax Rate
11 Waterloo (FY25)$22.07
10 Council Bluffs (FY26)$17.69
9 Sioux City (FY26)$17.66
8 Des Moines (FY26)*$17.56
7 Cedar Rapids (FY26)$16.66
6 Davenport (FY26)$16.61
5 Iowa City (FY26)$15.63
4 West Des Moines (FY25)*$11.80
3 Ankeny (FY25)*$10.53
2 Ames (FY26)$10.25
1 Dubuque (FY26)$10.06
AVERAGE w/o Dubuque $15.65
*Includes Des Moines Area Transit Levy
Budget Message
34 Page 37 of 121
Significant issues impacting the FY 2026 budget:
1.
Multi-Residential Property was combined with Residential Property in FY 2025.
2.Homestead Exemption 65+
a. HF718 created new exemption
b. 3,427 Homeowners filed for exemption
c. FY25 $3,250 in taxable value
d. FY26 $6,500 in taxable value
e. FY2026 revenue reduction to City of $224,174
3.Military Exemption
a. HF718 changed Military Credit to Exemption
b. Increased from $1,852 to $4,000
c. 1,937 Homeowners receive Military Exemption
d. FY2026 revenue reduction to City of $68,016
4.Residential Rollback
a. Residential Rollback factor increases from 46.3428% in 2025 to 47.4316%.
b. Impacts taxable value of residential and commercial/industrial impacted due to two-
tier assessment limitation on first $150,000
5.Riverfront Property Lease Revenue
a. Riverfront Property Lease revenue increased $162,758 in FY 2026 to $4,273,045
due to the estimated consumer price index increase and inclusion of property tax
reimbursement from leaseholders.
6.Local Option Sales Tax
a. Decreased from $12,927,516 in FY2025 to $12,905,936 in FY2026. The FY2026
budget is based on FY 2025 actual plus 2.00%.
Budget Message
35 Page 38 of 121
b. 50% to property tax relief, 50% to capital improvements (20% for maintenance of
City buildings and 30% for street maintenance)
7.Hotel Motel Tax
a. Increased from $3,376,382.62 in FY2025 to $3,910,460.00 in FY2026. The FY2026
budget is based on FY2025 actual plus 3%.
8.January 2025: Moody’s Affirmed City’s Bond Rating
a. Moody’s Affirmed the Aa2 credit rating on general obligation bonds.
b. Moody’s credit analysis states, “the City of Dubuque’s local economy benefits from
its role as a regional economic center, with solid resident income and full value per
capita. Financial operations are strong and will remain so despite declines in fund
balance over the next few years, as it expends funds from the pandemic. Long-
term liabilities and fixed cost ratios are moderate and will remain so despite future
borrowing needs.” According to Moody’s, the Aa2 issuer rating for the City of
Dubuque’s bonds reflects the city’s healthy economic base, which serves as a
regional economic center. Other rationale stated for the rating include full value per
capita and adjusted resident income are solid at around $109,000 and 98%
respectively, though weaker than Aa peers, in part because of a large student
population, available fund balance was strong at around 60% of revenue at the
close of fiscal 2023 (year-end June 30), and cash was stronger at 85% of revenue.
The City’s available fund balance will likely remain well over 45%, despite some
planned draws in fiscal 2024 and fiscal 2025 to spend down federal funds from the
pandemic. Despite the state adopting new property tax restrictions, revenue raising
flexibility remains strong because the City maintains significant margin in its
employee benefits fund and is not utilizing its emergency levy. The long-term
liabilities ratio will likely remain well under 300% inclusive of the current issuances
and future borrowing plans, and fixed-costs ratio will remain well below 20%.
9.The already approved collective bargaining agreements for Dubuque Professional Fire
Fighters Association and International Union of Operating Engineers is 3.5%.
10.The already approved collective bargaining agreement Dubuque Police Protective
Association is 5%.
11.The Teamsters Local Union No. 120 Bus Operators and Teamsters Local Union No. 120
are in contract negotiations.
12. Non-represented employees include a 3.00% wage increase.
13.Fiscal Year 2026 includes the cost of the implementation of the classification and
compensation study. A classification and compensation study analyzes the job positions
(not individuals) in an organization. The purpose of a classification and compensation
study is to ensure jobs with comparable minimum qualifications, job responsibilities,
supervisory expectations, working conditions and environments are grouped closely in a
compensation plan. Salary ranges are competitive within the identified market, and to
equip the human resources team to consistently administer classification and
compensation programs on an ongoing basis. The City’s strategy through this study has
been to recommend a new compensation strategy in which the City is competitive at the
50% percentile of employers.
14.Estimated cost to General Fund = $2,026,133
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36 Page 39 of 121
15.The Municipal Fire and Police Retirement System of Iowa Board of Trustees City
contribution for Police and Fire retirement increased from 22.66% percent in FY 2025 to
22.68% percent in FY 2026 (general fund cost of $2,177 for Police and $1,881 for Fire or
a total of $4,058)
16.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 648 contracts)
in FY 2026 (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 2024 actual experience,
Fiscal Year 2026 is projected to have a 4.61% increase in health insurance costs.
Estimates for FY 2027 were increased 4.62%; FY 2028 were increased 4.63%; FY 2029
were increased 4.64%; and FY 2030 were increased 4.65%.
17.The decrease in property tax support for Transit from FY 2025 to FY 2026 is $60,902,
which reflects an increase in Federal Transportation Administration Operating revenue
($40,167); an increase in Federal Transportation Administration Capital ($9,474), an
increase in employee expense ($111,326); decrease in supplies and services ($41,013); a
reduction in equipment replacements ($18,576), an increase in passenger fare revenue
($20,693).
18. Electrical energy expense is estimated to increase 16% over FY 2024 actual expense
based on approved rate increases.
19.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 an 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 an eight-
year period from FY 2023 to FY 2030. The FY 2026 State backfill for property
tax loss is estimated to be $646,603 for all funds (General Fund, Tort Liability
Fund, Trust and Agency Fund, Debt Service Fund, and Tax Increment
Financing Funds).
Budget Message
37 Page 40 of 121
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.
c. 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 remain 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 30th.
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.
d. The projected backfill for Dubuque for the two-tier assessment limitation in
Fiscal Year 2025 is estimated to be $387,318.
20.Gaming Revenue.
a Gaming revenues generated from lease payments from the Dubuque Racing
Association (DRA) are estimated to decrease $192,217 from $7,405,579 in FY
2025 to $7,213,362 in FY 2026 based on revised projections from the DRA. This
follows a $2,283,319 increase from budget in FY 2025 and a $43,621 increase
from budget in FY 2024.
Budget Message
38 Page 41 of 121
b February 2026 DRA distributions ($1,267,993) will be used used to fund FY2026
non-recurring improvement packages and implementation of the classification and
compensation study. This is a change from past use of DRA distributions because
all funds will be used for Fiscal Year 2026 operations. All of DRA distributions were
used in operations in Fiscal Years 2025 and 2024.
21.Interest Revenue
a Interest revenue increased from $1,718,055 in FY 2025 to $2,300,097 in FY 2026.
The FY 2026 budget is based on projected general fund cash balance, projected
interest rates, and the new banking services agreement tied to a thirteen week T-
bill plus five basis points.
22.Franchise Fee Revenue
a Natural Gas franchise fees have been projected to increase 11.7 percent over FY
2024 actual of $923,628. Also, Electric franchise fees are based on FY 2024 Actual
of $4,924,839 plus rate increases of 20.0 percent.
23.Fiscal Year 2026 Debt
a With the pledge of the $1.1 trillion dollar federal infrastructure package and other
opportunities to compete for grants, the City was successful in obtaining several large
grants an now will be implementing those projects, especially the Bee Branch Flood
Mitigation Project, 16th Street Pumping Station, and the 14th Street Overpass project.
A particular emphasis in this five-year CIP is modernization, maintenance, and extension of the
City sanitary sewer system to accommodate the growth the City is currently experiencing, and
anticipating in the next few years and beyond. In the current fiscal year (FY 2025), the City will
have allocated $40,809,198 and in this new five-year CIP, the City will have allocated an
additional $90,406,304 for a total of $131,215,502 over a six-year period.
The Fiscal Year 2026 CIP budget recommendation of $91,803,749 is a 3.44% increase from the
Fiscal Year 2025 CIP budget of $88,753,825.
The City will issue $152,147,710 in new debt in the recommended five-year CIP, mostly for fire
equipment replacement, fire station improvements, fire station expansion, airport improvements,
Chaplain Schmitt Island Iowa Amphitheater, reimagine Comiskey park development,
neighborhood park developments, Federal Building renovations, solid waste collection vehicles,
sanitary sewer improvements, water improvements, stormwater improvements, parking
improvements, and renovation of Five Flags, for a total of $152,147,710 of debt in FY
2026-2030. The City will retire $139,519,604 of existing debt, increasing the amount of City debt
by $12,628,106. By far the greatest use of debt over the next five years is for sanitary sewer
maintenance and improvements ($78,399,027).
For Fiscal Year 2026, the use of the statutory debt limit would be 33.50%, and by the end of the
Recommended 5-Year Capital Improvement Program (CIP) budget in Fiscal Year 2030, the City
of Dubuque would be at 32.90% of the statutory debt limit.
In this budget recommendation, the Mayor and City Council are currently reviewing, projections
out 10 years to Fiscal Year 2035 show the City of Dubuque at 19.66% 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.
Budget Message
39 Page 42 of 121
In the extremely low interest rate environment prior to 2015, the City had been increasing the
use of debt to accomplish the projects that need to be done. To have any success, a community
must have a sound infrastructure. The Mayor and City Council has recognized the infrastructure
issues Dubuque faces and has been responsive. While there was some criticism of City use of
debt to deal with those infrastructure challenges, that criticism fails to recognize that not
financing the needed infrastructure maintenance and improvements is also a form of debt that is
passed down to future generations. This was a strategic decision by the City Council realizing
that infrastructure investment just gets more expensive over time for these reasons: a) the older
a piece of infrastructure gets and the more it is allowed to deteriorate increases costs; b) the
longer the wait to invest in infrastructure the costs are increased by inflation; and c) If the
investment in infrastructure is not made in this low interest rate environment this investment will
eventually need to be made when interest rates are higher, thereby increasing costs. However,
beginning in FY 2016 the City Council at their 2015 Goal Setting Session debt reduction was
adopted as a High Priority. So the amount of outstanding debt began to decrease and in Fiscal
Year 2026 the City will be issuing slightly more debt ($4,698,236) than is retired and many
projects will become pay-as-you-go. However, in 2022 a fourth reason was created for
considering using debt for infrastructure projects and that is the massive amount of federal grant
money that was being made available.Most of these grants require matching dollars and most
require that the engineering work already be financed and completed to make the projects
shovel ready.
The debt principal outstanding projected as of June 30, 2025, is currently $281,085,184. The
breakdown of the debt principle outstanding as of June 30, 2025, is as follows:
Debt Obligation
6/30/2025
Principle
Outstanding
General Obligation Essential Corporate Purpose $100,598,999
Less General Obligation Debt Subject to Annual Appropriation ($14,625,570)
Tax Increment Notes and Bonds $15,565,000
Economic Development TIF Rebate Agreements $5,561,674
Other Revenue-Backed Loans $2,664,171
Total Indebtedness Subject to Statutory Debt Limit of $109,764,274
Percent of Statutory Debt Limit Used as of June 30, 2025 34.10%
Revenue Bonds $156,695,340
Less Revenue Bonds Subject to Annual Appropriation ($11,803,968)
Add Debt Subject to Annual Appropriation $26,429,538
Total City Indebtedness as of June 30, 2025 $281,085,184
Budget Message
40 Page 43 of 121
The City will issue $152,147,710 in new debt in the Recommended 5-year CIP, mostly for fire
equipment replacement ($4,163,408), fire station improvements, fire station expansion, airport
improvements, reimagine Comiskey Park ($1,697,000), neighborhood park developments,
Federal Building renovations ($5,640,600), solid waste collection vehicles, sanitary sewer
improvements ($90,406,304), water system projects ($15,956,673), stormwater improvements,
parking maintenance ($5,240,000), renovation of Five Flags ($22,890,869), and Central Avenue
improvements ($6,440,000).
Fire Equipment Replacement
(LOST)$401,060 $544,000 $—$—$—$945,060
Fire Station Expansion/
Relocation (LOST)$—$—$—$—$500,900 $500,900
Fire Station Improvements
(LOST)$100,000 $900,000 $500,000 $—$50,000 $1,550,000
Fire Truck/Ambulance
Replacements (LOST)$—$1,350,000 $950,000 $—$1,863,408 $4,163,408
Airport Improvements (LOST)$1,000,500 $804,999 $192,000 $294,000 $—$2,291,499
Park Development (LOST)$505,000 $—$—$—$—$505,000
14th Street Overpass (GDTIF)$—$—$—$1,341,131 $—$1,341,131
Reimagine Comiskey Park
(GDTIF)$1,697,000 $—$—$—$—$1,697,000
Central Avenue Corridor
(GDTIF)$—$—$1,760,000 $1,780,000 $2,900,000 $6,440,000
Federal Building Renovation
(GDTIF)$945,600 $—$—$—$4,695,000 $5,640,600
Five Flags Renovation (GDTIF)$—$2,750,000 $3,040,000 $8,128,869 $8,972,000 $22,890,869
Parking Ramp Major
Maintenance (GDTIF)$2,857,400 $350,000 $—$—$2,033,000 $5,240,400
Solid Waste Collection Vehicles -
Refuse $220,000 $375,000 $595,000 $375,000 $845,000 $2,410,000
Sanitary Sewer Projects $20,079,873 $17,796,826 $19,938,126 $12,413,852 $8,170,350 $78,399,027
Stormwater Projects $632,643 $820,000 $723,500 $2,176,143
Water Projects $750,000 $1,524,715 $9,158,146 $4,523,812 $—$15,956,673
Total New Debt $29,189,076 $27,215,540 $36,856,772 $28,856,664 $30,029,658 $152,147,710
Project FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total
The City will retire $139,519,604 of existing debt over the next five-years (FY26-FY30).
The following chart shows the net reduction of debt from Fiscal Year 2026 - Fiscal Year 2030:
Project
FY
2026
FY
2027
FY
2028
FY
2029
FY
2030 Total
New Debt $29,189,076 $27,215,540 $36,856,772 $28,856,664 $30,029,658 $152,147,710
Retired Debt -$24,490,840 -$26,781,297 -$28,355,118 -$29,751,697 -$30,140,652 -$139,519,604
Net Debt Increase (Reduction)$4,698,236 $434,243 $8,501,654 -$895,033 -$110,994 $12,628,106
There was a 0.53% increase in assessed value effective January 1, 2024, which is the
assessment the Fiscal Year 2026 statutory debt limit is based on. The statutory debt limit
effective June 30, 2026 is $323,629,585. The City will be at 33.50% of statutory debt limit by
June 30, 2026. In FY 16 the City was at 86.13% of statutory debt limit, so 33.50% in Fiscal Year
2026 is a 53.04% decrease in use of the statutory debt limit.
Budget Message
41 Page 44 of 121
The ten year history of the City’s use of the statutory debt limit is as follows:
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY24 FY25
90.00%86.54%66.06%59.79%52.90%46.91%43.51%43.33%39.36%40.07%34.85%
The five year projection of the City’s use of the statutory debt limit from Fiscal Year 2026–2030
including all planned debt issuances subject to the statutory limit and assuming a 2% growth in
the City’s assessed valuation beginning in Fiscal Year 2026 is as follows:
FY 26 FY 27 FY 28 FY 29 FY 30
33.50%32.13%30.65%30.58%32.90%
The following chart shows Dubuque's relative position pertaining to use of the statutory debt limit
for Fiscal Year 2026 compared to the other cities in Iowa for Fiscal Year 2024 with a population
over 50,000:
Fiscal Year 2024 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 (FY24)$803,564,354 $549,760,000 68.42%
10 (FY24)$551,635,692 $307,090,000 55.67%
9 24)$681,383,619 $396,830,000 58.24%
8 Waterloo (FY24)$221,546,701 $138,428,824 62.48%
7 Davenport (FY24)$423,816,425 $200,540,000 47.32%
6 Sioux City (FY24)$309,734,920 $144,929,999 46.79%
5 Dubuque (FY26)$323,629,585 $108,410,164 33.50%
4 Ankeny (FY24)$416,454,919 $100,260,000 24.07%
3 Ames (FY24)$277,278,426 $67,035,000 24.18%
2 Iowa City (FY24)$368,416,450 $62,905,000 17.07%
1 Council Bluffs (FY24)$365,780,288 $75,240,467 20.57%
Average w/o Dubuque 42.48%
Budget Message
42 Page 45 of 121
Percent of Legal Debt Limit Utilized
17.07%20.57%24.07%24.18%
33.50%
42.48%46.79%47.32%
55.67%58.24%62.48
68.42%
Iowa
C
i
t
y
(
F
Y
2
4
)
Coun
c
i
l
B
l
u
f
f
s
(
F
Y
2
4
)
Anke
n
y
(
F
Y
2
4
)
Ame
s
(
F
Y
2
4
)
Dubu
q
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e
(
F
Y
2
6
)
Aver
a
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e
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/
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D
u
b
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q
u
e
Sioux
C
i
t
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(
F
Y
2
4
)
Dave
n
p
o
r
t
(
F
Y
2
4
)
W. De
s
M
o
i
n
e
s
(
F
Y
2
4
)
Ceda
r
R
a
p
i
d
s
(
F
Y
2
4
)
Water
l
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o
(
F
Y
2
4
)
Des M
o
i
n
e
s
(
F
Y
2
4
)
0%
20%
40%
60%
80%
Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in Iowa with a
population over 50,000 and Dubuque is below the average of the other Cities. The average
(42.48%) is 26.82% higher than Dubuque (33.50%).
Budget Message
43 Page 46 of 121
Retired Debt Versus New Debt
The total City indebtedness as of June 30, 2026, is projected to be $167,789,201 (33.50% of
statutory debt limit). The total City indebtedness as of June 30, 2015, was $295,561,181 (90% of
statutory debt limit). The City is projected to have $8,483,725 more in debt as of June 30, 2026.
The combination of reduced debt and increased utility rates partially reflects the movement to a
more "pay as you go" strategy, which could lead to larger tax and fee increases than with the use
of debt. In Fiscal Year 2020, the City had $5,908,200 forgiven of the Bee Branch Upper Bee
Branch Loan on June 30, 2020 which increased principal payments reflected.
Based on the timing of projects, the City issued very little debt in FY23 ($0.48 million) and FY24
($7.99 million), so the FY25 debt issuance was a combination of three years of debt
funding for projects. In that three-year period, the City retired $60.72 million in debt and
issued $84.11 million in debt. The following chart shows the amount of retired debt as
compared to new debt. The new debt includes new debt issuances as well as draw downs on
existing state revolving fund loans:
Mi
l
l
i
o
n
s
Retired Debt Versus New Debt (In Millions)
$14.30$16.26$17.95$17.13
$23.36
$18.05$17.72
$18.73
$20.26$21.73$24.49
$26.78$28.36$29.75$30.14$28.40
$23.42
$23.27
$23.66
$22.58
$12.97$14.77
$12.07
$4.05 $10.90
$15.01$15.80
$0.48
$7.99
$75.64
$29.19$27.22
$36.86
$28.86$30.03
$1.00 $1.00 $1.00 $1.00 $1.00
Retired Debt New Debt
FY
1
6
FY
1
7
FY
1
8
FY
1
9
FY
2
0
FY
2
1
FY
2
2
FY
2
3
FY
2
4
FY
2
5
FY
2
6
FY
2
7
FY
2
8
FY
2
9
FY
3
0
FY
3
1
FY
3
2
FY
3
3
FY
3
4
FY
3
5
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
Budget Message
44 Page 47 of 121
Statutory Debt and Total Debt
In August 2015, the Mayor and City Council adopted a debt reduction strategy which targeted
retiring more debt each year than was issued by the City. The recommended FY 2026 budget
will exceed that target in FY 2026, FY 2027, and FY 2028 due to issuing necessary debt for Five
Flags, Fire Equipment and Station Improvements, Central Avenue Corridor Improvements,
Water Lead Lines, PFAS, Old Mill Road Lift Station and Force Main, Catfish Creek Sewershed
Interceptor Sewer Improvements, Track Line Sanitary Sewer Reconstruction, Force Main
Stabilization, and Park Improvements.However, Fiscal Year 2029 and Fiscal Year 2030 will meet
the target. You can see that the Mayor and City Council have significantly impacted the City’s
use of the statutory debt limit established by the State of Iowa. In Fiscal Year 2015, the City of
Dubuque used 90% of the statutory debt limit. In this budget recommendation, the Mayor and
City Council are currently reviewing for Fiscal Year 2026, the use of the statutory debt limit would
be 33.50%, and by the end of the recommended 5-Year Capital Improvement Program (CIP)
budget in Fiscal Year 2030, the City of Dubuque would be at 32.90% of the statutory debt limit.
Projections out 10 years to Fiscal Year 2035 show the City of Dubuque at 19.66% 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)
90%87%82%79%
72%
79%74%70%66%66%62%
90%
87%
66%
60%
53%
47%44%43%
36%36%34%33%32%31%31%33%30%27%25%22%20%
FY16 Adopted FY26 Recommended
FY
1
5
FY
1
6
FY
1
7
FY
1
8
FY
1
9
FY
2
0
FY
2
1
FY
2
2
FY
2
3
FY
2
4
FY
2
5
FY
2
6
FY
2
7
FY
2
8
FY
2
9
FY
3
0
FY
3
1
FY
3
2
FY
3
3
FY
3
4
FY
3
5
—%
25%
50%
75%
100%
Budget Message
45 Page 48 of 121
B y t h e e n d o f t h e R e c o m m e n d e d 5 - Y e a r C a p i t a l I m p r o v e m e n t P r o g r a m ( C I P ) b u d g e t , t h e t o t a l
amount of debt for the City of Dubuque would be $310.62 million (32.90% of the statutory debt
limit). Projections out 10 years to Fiscal Year 2035 show the City of Dubuque at 19.66% of the
statutory debt limit, and the projection is to be at $200.79 million (19.66% of statutory debt limit)
within 10 years.
Mi
l
l
i
o
n
s
Total Debt (In Millions)
$302.3
$290.1
$282.0
$265.6
$279.9
$267.4
$255.9
$244.3 $241.4
$226.2
$295.5
$285.7
$274.7
$264.0
$252.1
$250.6
$249.4
$231.1
$222.5
$281.1
$289.6 $293.6
$305.7 $308.2 $310.6
$284.9
$264.3
$243.5
$222.2
$200.8
FY16 Adopted FY26 Recommended
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
$189
$216
$243
$270
$297
$324
Budget Message
46 Page 49 of 121
General Fund Reserves
The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses
that may occur. Moody's Investor Service recommends a 35% General Fund Operating Reserve
for “AA” rated cities.
In January 2025, Moody’s Investor Services affirmed the Aa2 credit rating on general obligation
bonds. Moody’s credit analysis states, “the City of Dubuque’s local economy benefits from its
role as a regional economic center, with solid resident income and full value per capita. Financial
operations are strong and will remain so despite declines in fund balance over the next few
years, as it expends funds from the pandemic. Long-term liabilities and fixed cost ratios are
moderate and will remain so despite future borrowing needs.” According to Moody’s, the Aa2
issuer rating for the City of Dubuque’s bonds reflects the city’s healthy economic base, which
serves as a regional economic center. Other rationale stated for the rating include full value per
capita and adjusted resident income are solid at around $109,000 and 98% respectively, though
weaker than Aa peers, in part because of a large student population, available fund balance was
strong at around 60% of revenue at the close of fiscal 2023 (year-end June 30), and cash was
stronger at 85% of revenue. The City’s available fund balance will likely remain well over 45%,
despite some planned draws in fiscal 2024 and fiscal 2025 to spend down federal funds from the
pandemic. Despite the state adopting new property tax restrictions, revenue raising flexibility
remains strong because the City maintains significant margin in its employee benefits fund and
is not utilizing its emergency levy. The long-term liabilities ratio will likely remain well under
300% inclusive of the current issuances and future borrowing plans, and fixed-costs ratio will
remain well below 20%.
In July 2023, Moody’s Investor Service upgraded the City’s outstanding general obligation bonds
from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to A1.
Notable credit factors include strong financial operations and ample revenue-raising flexibility,
which has resulted in steadily improved available fund balance and cash. The City serves as a
regional economic center and its regional economic growth rate has outpaced the nation over
the past five years.
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.
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%.
Budget Message
47 Page 50 of 121
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.
In May 2021, Moody’s Investor Service upgraded the City’s Water Enterprise’s outstanding
revenue bonds from A1 to A2 and affirmed the Aa3 credit rating on general obligation bonds.
Notable credit factors include a sizable tax base, a wealth and income profile that is slightly
below similarly rated peers, and increased financial position that will decline in fiscal years 2021
and 2022 and somewhat elevated debt and pension liabilities.
These credit ratings are affirmation of the sound fiscal management of the mayor and city
council, put Dubuque in a strong position to capitalize on favorable financial markets, borrow at
low interest rate when necessary, and make critical investments in the community.
Fiscal
Year
Fund Reserve
(As percent of General
Fund revenues)
New Moody's
Methodology
Reason for change from previous Fiscal Year
FY 2019 29.06%
Increase due to capital projects not expended before the end of
the FY.
FY 2020 31.24%
Increase due to freezing vacant positions and most capital
projects due to the pandemic.
FY 2021 40.72%
Increase due to American Rescue Plan Act funds received
($13.2 million), frozen positions and capital projects through
Feb 2021.
FY 2022 49.16%45.09%
Increase due to American Rescue Plan Act funds received
($13.2 million), capital projects not expended before the end of
the FY, and vacant positions.
FY 2023 55.82%62.99%
Increase due to American Rescue Plan Act funds not spent
($26.4 million), capital projects not expended before the end of
the FY, and vacant positions.
FY 2024 51.19%62.41%
Decrease due to spend down of American Rescue Plan Act
funds.
Budget Message
48 Page 51 of 121
Fiscal Year
Pe
r
c
e
n
t
%
Fund Reserve as a Percent of General Fund and Enterprise Fund Revenue
New Moody's Methodology
23.81%
29.06%31.24%
40.72%
45.09%
62.99%62.41%
58.25%
54.09%
49.92%
45.76%
41.59%39.80%
FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY28 FY29 FY30
10
15
20
25
30
35
40
45
50
55
60
65
70
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. During Fiscal Year 2024,
the General Fund minimum balance was increased to 25%.
After all planned expenditures in FY 2025, the City of Dubuque will have a general fund
reserve of 44.41% of general fund revenues as a percent of general fund revenues
computed by the accrual basis or 58.25% 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 $81,140,352
on June 30, 2025 as compared to the general fund reserve balance on an accrual basis of
$38,026,193. The general fund reserve balance on an accrual basis exceeds 27% in FY
2025, which is the margin of error used to ensure the City always has a general fund
reserve of at least 25% as computed by Moody’s Investors Service.
Budget Message
49 Page 52 of 121
In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve
level in Fiscal Year 2022. In fact, the City met the 20% reserve requirement in FY 2017, five
years ahead of schedule and has sustained a greater than 20% reserve.
FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030
Contribution $2,717,339 $4,419,668 $—$—$—$—$—$—
City’s Spendable
General Fund
Cash Reserve
Fund Balance
$48,403,917 $43,826,193 $38,026,193 $32,226,193 $32,226,193 $32,226,193 $32,226,193 $32,226,193
% of Projected
Revenue
(Moody’s)
55.82%51.19%44.41%37.64%37.64%37.64%37.64%37.64%
State Revolving Fund Sponsorship Projects and Green Project Loans
The City uses State Revolving Fund (SRF) loans for water and sanitary sewer projects
whenever possible because of the very low annual interest rate of 1.75% with an annual
servicing fee of 0.25%.
In 2009, legislation was passed in Iowa that allows water utilities that issue debt through the
Clean Water State Revolving Fund Program to sponsor and help finance other water quality
improvement (CWSRF) projects within or outside its service limits. This new funding mechanism,
called Water Resource Restoration Sponsored Projects, will provide cities, counties, local
watershed organizations, watershed management authorities, county conservation boards, and
soil and water conservation districts a funding source to construct improvements throughout a
watershed that keep sediment, nutrients, chemicals and other pollutants out of streams and
lakes.
Repayment of a standard Clean Water SRF (CWSRF) loan includes the repayment of the
original loan amount, the principal, and the cost to finance the loan, interest, and fees. On a
CWSRF loan with a sponsored project, the financing costs are reduced by the amount of the
cost of the sponsored project improvements. Figure 1 shows a comparison between a standard
CWSRF loan and a CWSRF loan with a sponsorship project. As shown, the total cost to the
utility (the total of loan repayments) remains unchanged as the cost of funding for the
sponsorship project is offset by a reduction in loan financing costs. In essence, two water quality
projects are completed for the price of one.
Budget Message
50 Page 53 of 121
After three years of the State of Iowa being unsuccessful in completing one of these modified
loans, the City of Dubuque had the first successful application for the state when, in April 2013,
the City was awarded $9.4 million of the interest paid on the Water and Resource Recovery
Center to be used to reconstruct over 70 Green Alleys in the Bee Branch Watershed. The
principal for the Water & Resource Recovery Center Upgrade was increased from $64,885,000
to $75,145,579 and the interest rate plus annual servicing fee was decreased from 3.25% to
2.00% to add the Green Alley sponsorship project. This reduction allowed for increased
proceeds and resulted in a true interest cost of 1.96% and gross borrowing savings of $11.4
million. The State of Iowa has discontinued the sponsored project optin for future debt
issuances.
The Federal Fiscal Years 2010, 2011, and 2012 State Revolving Fund capitalization grants
included requirements for certain percentages of the funds to be allocated for green
projects. Each green infrastructure project receives a portion of loan forgiveness not to exceed
30%. In June 2015, the City of Dubuque Upper Bee Branch Creek Restoration Project (Upper
Bee Branch Project) qualified for a Green Project Loan from the CWSRF Program in the amount
of $29,541,000. The loan includes a principal forgiveness provision. The amount of the loan to
be forgiven is 20% of the total loan disbursements made under the loan agreement. The amount
of the loan that was forgiven in June 2020 was $5,908,200. The actual true interest cost for total
funds received was not the 2.00% borrowing rate (1.75% interest and 0.25% administrative fee),
but just 0.07% after reflecting the receipt of interest free funds (forgiven portion).
Budget Message
51 Page 54 of 121
Then, in August 2017, the City was awarded $1.4 million in funding for improvements with the
Catfish Creek Watershed through the State of Iowa Water Resource Restoration Sponsored
Project program as part of the City State Revolving Fund loan for the Upper Bee Branch Creek
Restoration Project. The funding for the $1.4 million in improvements will come from the interest
payments on the City's Upper Bee Branch SRF loan. The Upper Bee Branch Creek SRF loan
principal was increased to $30,941,000 and the interest rate plus the annual servicing fee was
reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were
$1.38 million less than the original loan.
In May 2018, the City was awarded $1.0 million in funding for pervious green alley
improvements with the Bee Branch Creek and Catfish Creek Watersheds through the State of
Iowa Water Resource Restoration Sponsored Project program as part of the City State
Revolving Fund loan for the Upper Bee Branch Creek Railroad Culverts Project. The funding for
the $1.0 million in improvements will come from the interest payments on the City's Upper Bee
Branch Railroad Culvert SRF loan. The Upper Bee Branch Creek Railroad Culvert SRF loan
principal was increased to $17,387,000 and the interest rate plus the annual servicing fee was
reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were
$1.05 million less than the original loan.
In February 2019, the City was awarded $276,300 in funding for Eagle Point Park Environmental
Restoration through the State of Iowa Water Resource Restoration Sponsored Project program
as part of the City State Revolving Fund loan for the Kerper Boulevard Sanitary Sewer Project.
The funding for the $276,300 in improvements will come from the interest payments on the City's
Kerper Boulevard Sanitary Sewer SRF loan. The Iowa Finance Authority now requires that
sponsorship projects are included in the initial loan amount so that the repayment schedule does
not have to be adjusted. On a gross basis, the borrowing costs for the new loan were $278,000
less than if there was not a sponsorship project included.
Capital Improvement Projects
The City is a partner with the Dubuque Racing Association (DRA) on redevelopment of Chaplain
Schmitt Island. The DRA is doing over $80 million in improvements to the Q Casino, including
building a new Hilton hotel and adding a family entertainment zone. The City is building an over
$15 million outdoor amphitheater on Chaplain Schmitt Island, millions of dollars of trails and
investing over $2.5 million in replacement of sanitary sewer and an addition of a new sanitary
sewer lift station.
Complimentary to the Chaplain Schmitt Island project the city is planning an over $40 million
project to build a railroad overpass on 14th Street, which would include a complete street design
on Elm Street and 16th Street, an added hike bike lane to the 16th Street bridge over Peosta
Channel and roundabout on 16th Street at Sycamore Street and Admiral Sheehy Drive
The 5-year Capital Improvement Program (CIP) includes several major projects:
1. Catfish Creek Sewershed Interceptor Sanitary Sewer Improvements $47 million total.
2.Water & Resource Recovery Center High Strength Waste $6.2 million total
Budget Message
52 Page 55 of 121
3.Water & Resource Recovery Center Industrial Controls Update $3 million total
4.Water & Resource Recovery Center BOD Capacity Upgrades $1.1 million total
5.Southwest Arterial Water Main Extension $1.7 million total
6.Private Lead Water Service Line Replacement Project $5.7 million total
i.Construction costs are 49% forgivable, whereas non-construction costs such as
engineering services are non-forgivable per BIL Funds.
7.Source Water PFAS Reduction Project $9.5 million total
8.Water Third Pressure Zone Connection (from Tanzanite Drive to Olympic Heights) $2.0
million total
9.Kerper Blvd. Sanitary Sewer Lift Station Replacement $1.5 million ARPA Grant (Total
project cost = $1.5 million)
10.Bee Branch Gate & Pump Replacement $28.2 million total ($8 million US EDA Grant)
11.14th Street Overpass
i.$25 million RAISE Grant
ii.$9.2 million DMATS
iii.Support from Dubuque Racing Association
Budget Message
53 Page 56 of 121
iv.Total project cost = $43 million)
Budget Message
54 Page 57 of 121
12. Northwest Arterial & US20/Dodge Street Intersection Improvements
i.$17.5 million total cost
ii.$12 million Iowa DOT allocation
iii.$5.5 million City Contribution
13.Streets
i.8 miles of asphalt overlay projects by Public Works Department
ii.14th Street Overpass, Roundabouts, & Related Improvements
iii.Northwest Arterial & US20/Dodge Street Intersection Improvements
iv.Central Avenue Corridor Streetscape Improvements
Timeline of Public Input Opportunities
The Budget Office conducted community outreach using print and digital marketing and
presentations.
Budget Message
55 Page 58 of 121
•July: City staff presented on the budget process to all Neighborhood Associations at the
Multicultural Family Center and attendees had the opportunity to prioritize real City
projects.
•November: The City Manager hosted an evening public budget input meeting.
Open Budget
https://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.
Open Expenses
http://expenses.cityofdubuque.org/
During Fiscal Year 2017, an additional module was added to the open data platform which
included an interactive checkbook which will allow residents to view the City’s payments to
vendors. The final step will be adding performance measures to the open data platform to allow
residents to view outcomes of the services provided by the City.
Balancing Act
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
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.
Budget Message
56 Page 59 of 121
Enterprise Fund Utility Rates
FY 2025
Rate
Recommended
FY 2026 Rate % Change
Water $40.14 $43.74 9 %
Sanitary Sewer $54.78 $59.70 9 %
Curbside Collection $17.25 $18.11 5 %
Stormwater $10.50 $11.03 5 %
Conclusion
If the City Council approves the budget recommendation, it will support continued investment in
people, businesses, and organizations that are making a difference in our community, and
continued investment in the infrastructure that must exist for Dubuque to continue to thrive.
This budget recommendation fits the original tax levy recommendation that was submitted.
However, I respect the Mayor and City Council’s establishment of a higher property tax rate
creating more flexibility as you go through the budget process.
There will be seven City Council special meetings prior to the adoption of the FY 2026 budget
before the state-mandated deadline of April 30, 2025. I want to thank Chief Financial Officer
Jennifer Larson, Assistant City Manager Cori Burbach, Public Information Officer Randy Gehl,
Budget Manager Laura Bendorf, Budget/Financial Analyst Nathan Kelleher, Budget/Financial
Analyst Joe Link, and Executive Assistant Stephanie Valentine for all their hard work and
dedication in preparation of this budget recommendation.
Michael C. Van Milligen
City Manager
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
Budget Message
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Recommended
Fiscal Year 2026
Budget
March 31, 2025
1Page 74 of 121
2
Five-Year Goals: 2023-2025
•Vibrant Community: Healthy and Safe
•Financially Responsible, High-Performance City Organization: Sustainable,
Equitable, and Effective Service Delivery
•Robust Local Economy: Diverse Business and Jobs with Economic
Prosperity
•Livable Neighborhoods & Housing: Great Place to Live
•Sustainable Environment: Preserving and Enhancing Natural Resources
•Connected Community: Equitable Transportation, Technology
Infrastructure, and Mobility
•Diverse Arts, Culture, Parks, and Recreation Experiences & Activities
•Partnerships for a Better Dubuque: Building Our Community that is Viable,
Livable, and Equitable
Page 75 of 121
3
2024-2026 Top Priorities (in alphabetical order)
•Air Service: Future Strategy & Action Plan – Major Airline Hub Connections
•Central Avenue Revitalization Plan Implementation
•Construction of 14th St. Railroad Overpass & 16th St. Corridor Complete Street
•Improvements: RAISE Grant and Matching Funds
•Police Department Staffing and Hiring
•Street Maintenance/Rehabilitation Program
2024-2026 High Priorities (in alphabetical order)
•Catfish Creek Sanitary Sewer Project: Old Mill Road Lift Station Project
•Chaplain Schmitt Island Development
•City Workforce Retention and Attraction
•Comprehensive Study of Fire Station Locations and Staffing
•Parks Maintenance/Refresh Action Plan.
Page 76 of 121
4Page 77 of 121
Budget Recommendation
Built On City Council
Goals & Priorities:
•Major CIP Projects
•Public Safety
•Streets
5Page 78 of 121
6
95,700
86,403
95,945
99,266
80,000
85,000
90,000
95,000
100,000
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
DUBUQUE COUNTY POPULATION ESTIMATES
37-Year Recovery (1976-2013)
THERE IS
NOTHING
HERE FOR
YOU
Outperforming Most of Our Peers
Page 79 of 121
7
Outperforming Most of Our Peers
Metropolitan Statistical Area % Change
Des Moines-West Des Moines Metro Area 16.7%
Iowa City Metro Area 15.2%
Ames Metro Area 7.3%
Cedar Rapids Metro Area 6.2%
Dubuque Metro Area 4.2%
Janesville-Beloit, WI Metro Area 2.1%
Sioux City, IA-NE-SD Metro Area 1.0%
Waterloo -Cedar Falls Metro Area 0.3%
Davenport-Moline-Rock Island Metro Area -0.5%
Rockford, IL Metro Area -3.0%
Peoria, IL Metro Area -3.3%
Decatur, IL Metro Area -6.1%
Percent
Change in
Population:
2010-2020
Page 80 of 121
Context for FY2026
Recommended
Budget
8Page 81 of 121
Cost Increases
9
Supply chain issues and rising prices for fuel, vehicles, equipment,
construction materials, electronics, etc. impacting operating expenses
Recommended wage increases:
•Police = 5%
•Fire = 3.5%
•Operating engineers = 3.5%
•2 Teamsters agreements still in negotiations
•Recommended 3% cost of living wage increase for non-bargaining
unit employees and implementation of Compensation &
Classification Study
Page 82 of 121
Community Safety
10
•Recent addition of 10 Firefighter positions
•4 major pieces of Fire Department equipment
•Continued aggressive deployment of security cameras
•Police Department’s Precision Policing Center
implementation
•New facility for 911 Emergency Communications
Center
ALL CITY DEPARTMENTS SUPPORT PUBLIC SAFETY
Page 83 of 121
Roads & Infrastructure
11
•10 miles of city streets repaved by Public Works
•Iowa DOT Studying US20 & Northwest Arterial
intersection for full reconstruction ($5 million local
match)
•14th St. Overpass, improvements to Elm St. and 16th
St., and other improvements in area: $43 million
total ($3 million planning grant & $25 million
implementation grant)
•South Port Mississippi River Floodwall
improvements (partnering with USACE)Page 84 of 121
Roads & Infrastructure (continued)
12
•Central Ave. & White St. corridor improvements ($8.1
million in CIP)
•Reimagine Comiskey Park Phase II ($1.7 million)
•Catfish Creek Sanitary Sewershed:
Sewer and lift station = $50 million (seeking grants)
•$131 million in CIP for sanitary sewer expansion, upgrades
and maintenance
•Replacement of 500 lead water service lines ($6 million)
•Water PFAS mitigation ($9.6 million) and new deep well
($4.5 million) part of Water Department’s $27.8 million CIP
Page 85 of 121
Economic Development
13
•Investments in downtown, Central Avenue corridor, West
End industrial parks, and Chaplain Schmitt Island access.
•CIP includes $23 million for Five Flags Center
improvements
•Continued support of housing creation efforts
•Field of Dreams Project
•Development agreements for new hotels and inquiries
about additional hotels
•University of Dubuque’s John & Alice Butler School of
Osteopathic Medicine
Page 86 of 121
Improved Customer Service
14
•Reorganization of Engineering Department to align work
being performed with correct titles and compensation with
a slight increase in FTE at a cost of just over $40,000.
•Reorganization of City Manager’s Office eliminates a full-
time position and converts currently vacant Director of
Strategic Partnerships position from part-time to full-time
at no increase in costs.
•Temporary position in the Sustainability Office set to
expire in June 2025 is extended through June 2026
Page 87 of 121
Opportunities for Grants
& Forgivable Loans
15
Totals to Date:
Grants to the City of Dubuque (Applicant): $33,384,233
Grants/Funds received Community-Wide:
•ARPA Directed Allocated Funds: $26,522,200
•County ARPA Funds to Community Organizations: $15,743,338
•Total Federal, State, & Private Funds: $123,819,444
•Total Federal, State, County, & Private Funds: $141,562,782
Page 88 of 121
Recommended
FY2026 City
Property Tax Rate
16Page 89 of 121
FY2022 – FY2025
17
Tax Rate ChangeCost Change for
Avg. Homeowner
FY2022 -2.5%0%
FY2023-1.74%+3%
FY2024 +1.96%+3%
FY2025 +0.25%+5%
Page 90 of 121
Proposed City
Property Tax Levy
18
FY2025Proposed
FY2026
%
Change
Total
Tax Levy$28,233,757 $29,861,901 5.77%
Tax Rate$9.92638 $10.06372 1.38%
Page 91 of 121
Proposed Property Tax Levy
19
% Change from
FY25
$ Change from
FY25
Property Tax Rate 1.38%$0.14
Property Tax Asking 5.77%$1,628,144
Avg. Residential Property 3.90%$33.38
Avg. Commercial Property 1.78%$74.26
Avg. Industrial Property 1.71%$85.68
Page 92 of 121
City Property Tax Rate
Comparison
20
$10.06 $10.25 $10.53 $11.75
$15.63 $15.65 $16.61 $16.66 $17.56 $17.66 $17.69
$22.07
Dubuque
(FY26)
Ames
(FY26)
Ankeny
(FY25)*
West Des
Moines
(FY26)*
Iowa City
(FY26)
AVERAGE
w/o
Dubuque
Davenport
(FY26)
Cedar
Rapids
(FY26)
Des
Moines
(FY26)*
Sioux City
(FY26)
Council
Bluffs
(FY26)
Waterloo
(FY25)
Waterloo = 119% higher than Dubuque Average = 55% higher than Dubuque
Page 93 of 121
Average Annual Increase:
1989-2026
•Since 1989, the average homeowner has
averaged an annual increase in costs in the
City portion of their property taxes of +1.45%,
or about +$9.28 a year.
•If the State had been fully funding the
Homestead Tax Credit, the increase would
have averaged about +$6.62 a year.
21Page 94 of 121
State’s Residential Rollback
•The State of Iowa’s residential rollback factor will
decrease from 46.3428% in 2025 to 47.4316% or a
2.35% increase in FY2026.
•This increase in the residential rollback factor
increases the value that each property is taxed on.
•The increased taxable value for the average
homeowner ($91,067 taxable value in FY2025 and
$93,207 taxable value in FY2026) results in more
taxes to be paid per $1,000 of assessed value.
22Page 95 of 121
23
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Annual Loss of Tax Revenue from
Multi-Residential Property Rollback
The State of Iowa will not backfill property tax loss from the rollback on multi-
residential property. The City will annually lose $1.2 million as a result.
Dubuque’s total revenue loss for FY17-FY24 = $5.63 million
State’s Residential Rollback
Page 96 of 121
24
Significant Issues Impacting
the FY2026 Budget
•Multiresidential combined with Residential in FY2025
•Homestead Exemption for 65+ ($224,174 revenue reduction)
•Military Exemption ($68,016 revenue reduction)
•Riverfront Property Lease Revenue ($162,758 revenue increase)
•Local Option Sales Tax ($21,580 revenue reduction)
•Hotel/Motel Tax ($534,077 revenue increase)
•Moody’s Upgrade of City Bond Rating (July 2023)
Page 97 of 121
25
Significant Issues Impacting
the FY2026 Budget
•Decrease in gaming revenue -$192,217
•Increase in interest revenue +$582,042
•Decrease in gas and electric franchise fee revenue -$797,236
•Slight increase in City contribution to Municipal Fire and
Police Retirement System (.09%)
•No change to City portion of health insurance expense
•Increase in electrical energy expense (20%)
•FY2026 debt for large infrastructure projects
Page 98 of 121
26
•3.5% increase for Dubuque Professional Firefighters
and International Union of Operating Engineers
•5% increase for Dubuque Police Protective Association
•3% for non-represented employees & implementation of
Compensation & Classification Study
•Teamsters Local Union No. 120 Bus Operators and
Teamsters Local Union No. 120 in negotiations
Estimated cost to General Fund = $2,026,133
Significant Issues Impacting
the FY2026 Budget
Page 99 of 121
27
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Total State Backfill Payments to Dubuque
The projected backfill for Dubuque
for the two-tier assessment
limitation in FY2026 is estimated to
be $646,603.
State-Funded Backfill on Commercial & Industrial Property Tax
Significant Issues Impacting
the FY2026 Budget
Page 100 of 121
28
Recommended 5-Year
Capital Improvement
Program
Page 101 of 121
Recommended 5-Year CIP
29
Emphasis is modernization, maintenance, and extension
of sanitary sewer system to accommodate growth the
City is currently experiencing and anticipating
CIP Budget:
From Jan. 2025 – Dec. 2029, the City will spend over
$131 million on sanitary sewer and wastewater treatment
plant improvements.
Page 102 of 121
•City will issue $152,147,710 in new
debt in the recommended 5-year CIP.
•City will retire $139,519,604 of
existing debt
•Increase of City debt by $12,628,106
30
Recommended 5-Year CIP
Page 103 of 121
For FY2026, the City’s use of the statutory
debt limit would be 33.50%.
By the end of the recommended 5-Year
CIP budget in FY2030, the City would be at
32.90% of the statutory debt limit.
31
Recommended 5-Year CIP
Page 104 of 121
32
Recommended 5-Year CIP
Strategic Use of Debt for Infrastructure Projects:
1.The older a piece of infrastructure gets and the more it is
allowed to deteriorate, the more costs increase
2.The longer the wait to invest in infrastructure, the more
costs are increased by inflation
3.If the investment in infrastructure is not made in this
interest rate environment, it will eventually need to be
made when interest rates could be potentially higher,
thereby increasing costs
4.The massive amount of federal grant money that is being
made available
Page 105 of 121
Recommended 5-Year CIP
33
The City will issue $152,147,710 in new debt in the
Recommended 5-year CIP, mostly for:
•Sanitary Sewer Projects $78,399,027
•Five Flags Renovation $22,890,869
•Water Projects $15,956,673
•Fire Equipment & Improvements $7,159,368
•Central Ave Corridor $6,440,000
•Federal Building Renovation $5,640,000
•Parking Ramp Maintenance $5,240,000
•Airport Improvements $2,291,499
•Park Development $2,202,000
Page 106 of 121
Major Projects Included in
5-Year CIP
•Catfish Creek Sewershed Interceptor Sanitary
Sewer Improvements: $47 million total
•Water & Resource Recovery Center High
Strength Waste: $6.2 million total
•Water & Resource Recovery Center Industrial
Controls Update: $3 million total
•Water & Resource Recovery Center BOD
Capacity Upgrades: $1.1 million total
34Page 107 of 121
Major Projects Included in
5-Year CIP
•Southwest Arterial Water Main Extension: $1.7
million total
•Private Lead Water Service Line Replacement
Project: $5.7 million total
•Source Water PFAS Reduction Project: $9.5
million total
•Water Third Pressure Zone Connection (from
Tanzanite Drive to Olympic Heights): $2 million
total
35Page 108 of 121
Major Projects Included in
5-Year CIP
•Kerper Blvd. Sanitary Sewer Lift Station
Replacement: $1.5 million ARPA Grant (Total
project cost = $1.5 million)
•Bee Branch Gate & Pump Replacement: $28.2
million total ($8 million US EDA Grant)
•14th Street Overpass: $43 million total
- $25 million RAISE Grant
- $9.2 million DMATS
- Support from Dubuque Racing Association
36Page 109 of 121
Major Projects Included in
5-Year CIP
Northwest Arterial & US20/Dodge Street Intersection
Improvements: $17.5 million total
•$12 million Iowa DOT allocation, $5.5 million City
contribution
Streets
•10 miles of asphalt overlay projects by Public Works
•14th Street Overpass, Roundabouts, & Related
Improvements
•Central Avenue Corridor Improvements
37Page 110 of 121
38
Percentage of Legal Debt
Limit Utilized
17.1%20.6%24.1%24.2%
33.5%42.5%46.8%47.3%
55.7%58.2%62.5%68.4%Dubuque ranks as the 5th
lowest of the 11 largest cities
and is below the average.
Des Moines is 104% higher and the average is 27% higher than Dubuque
Page 111 of 121
•The total City indebtedness as of June 30, 2026, is projected
to be $167,789,201 (33.50% of statutory debt limit).
•The total City indebtedness as of June 30, 2015, was
$295,561,181 (90% of statutory debt limit).
•The City is projected to have $8,483,725 more in debt as of
June 30, 2026.
The combination of reduced debt and increased utility rates
partially reflects the movement to a more "pay as you go"
strategy, which could lead to larger tax and fee increases than
with the use of debt.
39
Retired Debt vs. New Debt
Page 112 of 121
40
Retired Debt vs. New Debt (in millions)
$14.30 $16.26 $17.95 $17.13
$23.36
$18.05
$17.72 $18.73 $20.26 $21.73
$24.49
$26.78 $28.36 $29.75 $30.14 $28.40
$23.42 $23.27 $23.66 $23.66
$12.97 $14.77
$12.07
$4.05
$10.48
$14.92
$18.49
$0.48
$7.99
$75.64
$29.19 $27.22
$36.86
$28.86 $30.03
$1.00 $1.00 $1.00 $1.00 $1.00$0
$10
$20
$30
$40
$50
$60
$70
$80
FY16 FY17 FY18 FY19 FY20*FY21 FY22 FY23 FY24 FY25 FY26**FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
Retired Debt New Debt
The FY25 debt issuance was a combination of three
years of debt funding for projects. In that three-year
period, the City retired $60.72 million in debt and
issued $84.11 million in debt.
Page 113 of 121
FY2015: Dubuque used 90% of statutory debt limit
FY2026 Budget Recommendation: use of statutory debt limit is
33.50%
By the end of the recommended 5-Year CIP budget in FY2030, the
Dubuque would be at 32.90% of statutory debt limit.
Projections out 10 years to FY2035 show Dubuque at 19.66% of
statutory debt limit
41
Statutory Debt & Total Debt
Page 114 of 121
42
Reduction of Statutory Debt Limit
Used (FY26 Recommended)
90%87%
66%60%
53%
47%44%43%
36%36%34%33%32%31%31%33%30%27%25%22%19%
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY15 to FY26 = 63%
decrease in use of the
Page 115 of 121
General Fund Reserves
•Moody’s Investor Service recommends a 35% General Fund
Operating Reserve for “AA” rated cities.
•In July 2023, Moody’s Investor Service upgraded the City’s
outstanding general obligation bonds from Aa3 to Aa2, as well as the
outstanding Sales Tax Increment Revenue bonds from A2 to A1.
•In January 2025, Moody’s Investor Services affirmed Dubuque’s Aa2
credit rating
“…the City of Dubuque’s local economy benefits from its role as a regional economic
center, with solid resident income and full value per capita. Financial operations are
strong and will remain so despite declines in fund balance over the next few years, as
it expends funds from the pandemic. Long-term liabilities and fixed cost ratios are
moderate and will remain so despite future borrowing needs.”
43Page 116 of 121
General Fund Reserve
Projections
44
City’s Spendable General
Fund Cash Reserve
% of Projected
Revenue
Moody’s New
Methodology
FY2025 $38,026,193 44.41%58.25%
FY2026 $32,226,193 37.64%54.09%
FY2027 $32,226,193 37.64%49.92%
FY2028 $32,226,193 37.64%45.76%
FY2029 $26,388,917 37.64%41.59%
FY2030 $32,226,193 37.64%39.80%
Page 117 of 121
Recommended Rates & Fees
FY2025
Rate
Recommended
FY2026 Rate % Change Avg. Monthly
Cost Change
Water $40.14 $43.74 9%+$3.60
Sanitary Sewer $54.78 $59.70 9%+$4.92
Curbside
Collection $17.25 $18.11 5%+$0.86
Stormwater $10.50 $11.03 5%$0.53
45
Average monthly cost for City utilities would increase by $9.91.
The City offers income-qualified residential customers a base fee reduction
for all four utilities of up to 50%.
Page 118 of 121
Improvement Packages
For FY2026 there are $2,309,628 in general
fund improvement requests, of which
$1,714,247 are recurring and $595,380 are
non-recurring.
There is $261,720 recommended in non-
recurring and $608,385 in recurring
improvements.
46Page 119 of 121
If the City Council approves the budget
recommendation, it will support continued
investment in the people, businesses, and
organizations that are making a difference in
our community, and continued investment in
the infrastructure that must exist for Dubuque
to continue to thrive.
47Page 120 of 121
FY2026 Budget Public Input
Opportunities
•Public Meetings: April 2, 3, 8, 9, 10, 22, 24
•Public Hearing to Adopt: April 28
•Budget Comment Form at
www.cityofdubuque.org/FY2026budget
•Contact City Council:
www.cityofdubuque.org/councilcontacts
48Page 121 of 121