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Residents GuideTABLE OF CONTENTS Page 367 of 1094 This page intentionally left blank. Page 368 of 1094 TABLE OF CONTENTS Resident's Guide to the Recommended Fiscal Year 2026 Budget (Table of Contents contains Hyperlinks; click on the section header to link directly to related page) PAGE PAGE Introduction Budget Overviews Council Mission, Vision, and Administrative Staff ......................................6 Dubuque 2039 Vision Statement, City Council Five-Year Goals, City Council Policy Agenda and Management Agenda for 2024-2026 .............................136City of Dubuque Mayor and City Council ..8 City of Dubuque Organizational Chart ......9 Long and Short Term Goals ....................140 City of Dubuque Management ....................10 Budget Fact Sheet ....................................148 Budget Public Meeting Schedule ...............12 Total Revenue and Expenditures – All Funds ..........................................................149 Distinguished Budget Presentation Award .............................................................14 Long-Term Financial Plan ....................... Revenue Category Explanations ...........150 Budget Message Revenue Highlights ..................................156 Budget Introduction ......................................18 Expenditure Highlights .............................164 Budget Transmittal Memo ...........................19 Costs of Municipal Services ....................169 Differences of FY 2026 Recommended Budget from FY 2026 Proposed Property Tax Asking .....................................................88 Utility Rates and Comparisons ...............171 How Your Property Tax Rate and Payment are Split – Pie Chart ...............173 City Manager's Guiding Principles of the Management Philosophy .............................89 Tax Rate and Comparison .......................174 Valuation Growth ......................................175 Budget Process Comparison of Taxable Value Per Capita .........................................................177Overview of Budgeting ................................92 Fund - Department Relationship ................104 Impact of Budget on Classes of Property ......................................................178Key Terms for Understanding a Budget ....106 Summary of Decision Packages ............185 Budget in Brief ............................................110 Full-Time Equivalent Personnel Changes .....................................................197 Community Information Personnel Complement Summary .........200 History of Dubuque ......................................126 Demographics ...............................................127 Land Use .......................................................128 Financial Summaries Services Provided to Residents / Recreation .....................................................129 How Your City Share of Property Taxes are Distributed – Pie Chart ..........206 Major Employers & Employment by Industry ..........................................................130 Net Operating Budget in Funds Including Tax Levy Revenue, by Department ................................................207 Non-Profit and Partner Board Representation .............................................131 Boards and Commissions ...........................132 Page 369 of 1094 TABLE OF CONTENTS (Continued) PAGE PAGE Financial Summaries (Continued)Capital Budget Distribution of City Portion of Property Tax Payment – Residential Property Example .........................................................208 Capital Improvement Program ...............256 Capital Improvement Program Message .....................................................263 Budgeted Revenue by Category – Pie Chart ...............................................................209 Capital Improvement Program Projects ......................................................316 Total Revenues by Revenue Category .....210 Street Construction Improvement Program .....................................................332 Where the Money Comes From - Pie Chart ...............................................................211 How Budgeted Expenditures are Funded 212 Policy Guidelines 336 How the Money is Spent .............................215 Expenditures by Department & State Program .........................................................216 Budget Glossary Grand Total Expenditure Summaries ........219 Glossary .....................................................390 Operating Budget by Major Categories ....221 Acronyms ...................................................403 Operating Budget by Fund and Department ....................................................222 Fund Balance, Income, and Expense Summary .......................................................226 Summary of Fund Balance Changes ........230 Community Development Block Grant Funds FY 2026 Annual Action Plan .......................234 Debt Summaries / General Obligation Debt and Debt Capacity Debt Service Fund Explanation ..................240 Statutory Debt Limit ......................................241 Statutory Debt Capacity ..............................243 Total Debt Outstanding ................................244 General Obligation Debt By Capita ...........245 Summary of Bonded Indebtedness ...........246 Retired Debt Versus New Debt ..................250 Bond Rating ...................................................251 Page 370 of 1094 CITY of DUBUQUE, IOWA RESIDENT'S GUIDE to the RECOMMENDED FISCAL YEAR 2026 Budget CITY 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. 2039 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. CITY COUNCIL Brad M. Cavanagh, Mayor Ric W. Jones David T. Resnick Susan R. Farber Laura J. Roussell Danny C. Sprank Katy A. Wethal ADMINISTRATIVE STAFF Michael C. Van Milligen City Manager Crenna M. Brumwell City Attorney Adrienne N. Breitfelder City Clerk Cori L. Burbach Assistant City Manager Jennifer M. Larson Chief Financial Officer Laura M. Bendorf Budget Manager Joseph J. Link Budget & Financial Analyst Nathan J. Kelleher Budget & Financial Analyst Stephanie A. Valentine Executive Assistant Mia F. Burbach Administrative Assistant Kaia K. Humpal Confidential Account Clerk Randy W. Gehl Public Information Officer Kristin R. Hill Communications Specialist Jesse W. Gavin Communications Specialist 6 Page 371 of 1094 This page intentionally left blank. 7 Page 372 of 1094 8 Page 373 of 1094 9 Page 374 of 1094 10 Page 375 of 1094 This page intentionally left blank. 11 Page 376 of 1094 CITY COUNCIL'S FISCAL YEAR 2026 BUDGET PUBLIC MEETING SCHEDULE DATE DAY TIME PLACE TOPIC March 25 Tuesday 6:30 p.m.Council Chambers Public Hearing on Property Tax Levy March 31 Monday 6:30 p.m.Council Chambers Budget document presentation to City Council April 2 Wednesday 6:30 p.m.Council Chambers City Manager's Office City Council City Attorney’s Office City Clerk Communications Office Human Resources Adjournment April 3 Thursday 6:30 p.m.Council Chambers Health Services Library Housing/Community Development Office of Shared Prosperity Office of Equity and Human Rights Adjournment April 8 Tuesday 6:30 p.m.Council Chambers Airport Purchase of Services Planning Economic Development Finance Adjournment April 9 Wednesday 6:30 p.m.Council Chambers Parks Recreation Grand River Center ImOn Ice Arena Five Flags Civic Center Adjournment April 10 Thursday 6:30 p.m.Council Chambers Emergency Management Emergency Communications Police Fire Adjournment April 22 Tuesday 6:30 p.m.Council Chambers Information Technology Water Water & Resource Recovery Center Public Works Adjournment April 24 Thursday 6:30 p.m.Council Chambers Multicultural Family Center Community Impact Transportation Services Engineering Adjournment April 28 Monday 6:30 p.m.Council Chambers Public Hearing to Adopt FY 2026 Budget 12 Page 377 of 1094 This page intentionally left blank. 13 Page 378 of 1094 Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Dubuque, Iowa, for its Annual Budget for the fiscal year beginning July 1, 2024. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. This City of Dubuque has been awarded this honor for the past 19 years in a row. 14 Page 379 of 1094 This page intentionally left blank. 15 Page 380 of 1094 CITY MANAGER’S BUDGET MESSAGE 16 Page 381 of 1094 This page intentionally left blank. 17 Page 382 of 1094 BUDGET INTRODUCTION Attached for your review is the Fiscal Year 2026 Recommended Budget. The Budget and Fiscal Policy Guidelines are developed and adopted by City Council early in the budgeting process in order to provide targets or parameters within which the budget recommendation is to be formulated. The budget recommendation presented by the City Manager may not meet all of these targets due to changing conditions and updated information during budget preparation. To the extent the adopted budget varies from the guidelines, an explanation is provided following the Budget Transmittal Message. The following Fiscal Year 2026 Budget Transmittal Message is written in February as recommended by the City Manager to the Honorable Mayor and City Council. A series of Budget Hearings take place following the presentation of the recommended budget, to allow for public input and analysis. This budget was presented on March 31, 2025 to the Honorable Mayor and City Council. Budget Message 18 Page 383 of 1094 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 Budget Message 19 Page 384 of 1094 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 to Aa2 from Aa3, as well as its outstanding moral obligation SalesTax Increment Revenue Bonds, Senior Bond Series 2015A toA1 from A2. Budget Message 20 Page 385 of 1094 The issuer rating was upgraded to Aa2 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. Budget Message 21 Page 386 of 1094 Budget Message 22 Page 387 of 1094 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: Budget Message 23 Page 388 of 1094 Budget Message 24 Page 389 of 1094 Budget Message 25 Page 390 of 1094 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. Budget Message 26 Page 391 of 1094 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. Budget Message 27 Page 392 of 1094 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. Budget Message 28 Page 393 of 1094 •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. Budget Message 29 Page 394 of 1094 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. Budget Message 30 Page 395 of 1094 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. Budget Message 31 Page 396 of 1094 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. Budget Message 32 Page 397 of 1094 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. Budget Message 33 Page 398 of 1094 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) Budget Message 34 Page 399 of 1094 •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. Budget Message 35 Page 400 of 1094 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. Budget Message 36 Page 401 of 1094 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. Budget Message 37 Page 402 of 1094 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. Budget Message 38 Page 403 of 1094 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. Budget Message 39 Page 404 of 1094 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. Budget Message 40 Page 405 of 1094 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. Budget Message 41 Page 406 of 1094 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. Budget Message 42 Page 407 of 1094 •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. Budget Message 43 Page 408 of 1094 •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. Budget Message 44 Page 409 of 1094 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 Budget Message 45 Page 410 of 1094 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 46 Page 411 of 1094 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 Budget Message 47 Page 412 of 1094 •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. Budget Message 48 Page 413 of 1094 •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 49 Page 414 of 1094 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 50 Page 415 of 1094 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 $29,861,915 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%, $74.27), and an increase for industrial (1.71%, $85.68). % Change $ Change Property Tax Rate 1.38 %$ 0.14 Property Tax Asking 5.77 %$ 1,628,158.08 Average Residential Payment 3.90 %$ 33.38 Average Commercial Payment 1.78 %$ 74.27 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 $ 10.5957 5.29 % FY 2028 $ 11.0623 4.40 % FY 2029 $ 11.1686 0.96 % FY 2030 $ 11.4436 2.43 % Budget Message 51 Page 416 of 1094 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 $ 29,861,915 +5.77 % +3.90 %$ +33.38 FY 2027 $ 32,052,686 +10.89 % +5.29 %$ +47.00 FY 2028 $ 34,130,077 +6.40 % +4.40 %$ +41.23 FY 2029 $ 35,146,352 +3.00 % +0.96 %$ +9.39 FY 2030 $ 36,723,553 +4.46 % +2.46 %$ +24.30 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 (FY26)) is 116.54% higher than Dubuque’s rate, and the average is 55.15% 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)$21.79 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)*$11.75 3 Ankeny (FY25)*$10.53 2 Ames (FY26)$10.25 1 Dubuque (FY26)$10.06 AVERAGE w/o Dubuque $15.61 *Includes Des Moines Area Transit Levy Budget Message 52 Page 417 of 1094 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 53 Page 418 of 1094 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 Budget Message 54 Page 419 of 1094 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 $2,185 for Police and $1,821 for Fire or a total of $4,007) 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 $34,152, 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 ($138,076); 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 55 Page 420 of 1094 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 56 Page 421 of 1094 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 57 Page 422 of 1094 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 58 Page 423 of 1094 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 59 Page 424 of 1094 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 60 Page 425 of 1094 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 u e ( F Y 2 6 ) Aver a g e w / o D u b u q u e Sioux C i t y ( 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 o 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 61 Page 426 of 1094 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 62 Page 427 of 1094 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 63 Page 428 of 1094 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 64 Page 429 of 1094 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 65 Page 430 of 1094 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 66 Page 431 of 1094 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 67 Page 432 of 1094 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 68 Page 433 of 1094 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 69 Page 434 of 1094 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 70 Page 435 of 1094 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 71 Page 436 of 1094 iv.Total project cost = $43 million) Budget Message 72 Page 437 of 1094 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 73 Page 438 of 1094 •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 74 Page 439 of 1094 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 75 Page 440 of 1094 Budget Message 76 Page 441 of 1094 Budget Message 77 Page 442 of 1094 Budget Message 78 Page 443 of 1094 Budget Message 79 Page 444 of 1094 Budget Message 80 Page 445 of 1094 Budget Message 81 Page 446 of 1094 Budget Message 82 Page 447 of 1094 Budget Message 83 Page 448 of 1094 Budget Message 84 Page 449 of 1094 Budget Message 85 Page 450 of 1094 Budget Message 86 Page 451 of 1094 Budget Message 87 Page 452 of 1094 DIFFERENCES OF FISCAL YEAR 2026 RECOMMENDED BUDGET FROM MAXIMUM PROPERTY TAX DOLLARS RESOLUTION Tax Asking The proposed property tax dollars resolution approved by the City Council on March 25, 2025 totaled $26,832,471 (including the debt service levy of $285,870). The recommended tax asking was unchanged from the proposed property tax dollars tax asking. Property Tax Paid by Average Homeowner The proposed property tax dollars resolution included a 3.90% increase for the average homeowner property tax payment for the City portion of their property tax bill assuming the Homestead Property Tax Credit is fully funded. The recommendation included in this budget provides a 3.90% increase. Property Tax Paid by Average Commercial Property The proposed property tax dollars resolution included a 1.78% increase for the average commercial property owner. The recommendation included in this budget is a 1.78% increase for the average commercial property owner. Property Tax Paid by Average Industrial Property The proposed property tax dollars resolution included a 1.71% increase for the average industrial property owner. The recommendation included in this budget is a 1.71% increase for the average industrial property owner. Tax Rate The Fiscal Year 2026 “City” portion of the tax rate is being increased by $0.13734 from the Fiscal Year 2025 rate of $9.92638 to a tax rate of $10.06372 per $1,000 of taxable assessed valuation. The proposed property tax dollars resolution established by City Council included a rate of $10.06372. The recommendation included in this budget is a rate of $9.90135 (1.38% more than FY 2025). Budget Message 88 Page 453 of 1094 89 Page 454 of 1094 BUDGET PROCESS 90 Page 455 of 1094 This page intentionally left blank. 91 Page 456 of 1094 OVERVIEW OF BUDGETING INTRODUCTION The review and adoption of the budget is the single most important thing that a City Council does each year. The budget sets the tempo, capabilities, commitments and direction of the city government for an entire year. It is the yardstick against which the city operations can be evaluated. But what is a budget? The purpose of this narrative is to identify: a)what a budget is; b)why we prepare a budget; c)alternative types of budgets; d)major characteristics of the Dubuque budget system; and e)roles and responsibilities in preparing the annual budget. WHAT IS A BUDGET? A budget is several things: 1.The budget is a fiscal plan setting out anticipated revenue and expenditures for accomplishing a variety of services over a given time frame. The fiscal plan includes: a)an explanation of the services, activities, programs and projects to be provided by the City to the residents; b)the resultant expenditure requirements; and c)the resources available for meeting the expenditure requirements. 2.The budget is a process concerned with the allocation of available resources among alternatives and competing departments, activities and programs. Cities rarely have enough money to be able to appropriate all the funds requested to all departments and activities and, as a result, there is considerable competition for whatever money is available. Budgeting, as a process, is concerned with developing an acceptable mix or balance between costs and services and represents the decisions made with respect to: a)quality and quantity of activities and projects to be undertaken; and b)financing of those activities and projects. 3.The budget is a policy document which: a)establishes the authority to spend funds, and levy and collect property taxes; b)represents a commitment to provide a specific level of service within a given amount of resources; and establishes criteria (objectives, measures and dollar limits) for evaluating and controlling expenditures, revenue collections and performance. Through the budget, policies are made, put into effect, and controlled. Budget Process 92 Page 457 of 1094 4.The budget is a legal requirement. State law requires the City Manager to prepare the annual budget and the City Council to adopt the annual budget and certify it to the County Auditor by April 30th of each year preceding the beginning of the fiscal year on July 1st. The budget must be on a program - performance basis and show: a)expenditures for each program; b)income from sources other than property taxes; and c)amount to be raised by the property taxation and the property tax rate expressed in dollars per thousand of assessed value. d)The budget must also show comparisons between expenditures in each program and between levels of service. WHY DO WE BUDGET? WHY IS IT IMPORTANT? Why do we go through the agony and the work? There are several reasons: 1.To meet the legal requirement. 2.To establish spending and income-raising authority. 3.To establish a work program for the fiscal year (objectives) and present it to the public. 4.To manage and control resources and their use. 5.To assure the proper mix of costs and services. 6.To assure the most effective and efficient use of available resources. 7.To set the tempo and direction of the city government. 8.To prioritize policies and objectives. 9.To link dollars with results. ALTERNATIVE TYPES OF BUDGETS Line-Item Budget The most commonly used budget format in local government today is the line-item budget. A line- item budget is one which allocates money for specific expense items or objects of expenditure without reference to the purpose, activities or program they will serve. This type of budget lists expenditures by such categories as full-time salaries, overtime, office supplies, postage, travel, rental expense, maintenance of buildings and grounds, office furniture and equipment, etc. The principal advantage of a line-item budget is that it is easy to prepare and facilitates expenditure control. However, this form of budget tells very little about the purposes, activities and programs of the city it serves. For example, it shows the amount of money that has been budgeted for personnel, but it does not show the nature of the services such personnel are to provide. Furthermore, the traditional line-item approach does not show comparative costs and benefits of competing programs, thus making it difficult for the City Council and management to evaluate individual activities and allocate resources. These characteristics limit its usefulness as a device for giving direction and purpose to public service activities and programs. Budget Process 93 Page 458 of 1094 Program Budget Local governments usually spend money to accomplish something more than purchasing goods and services. They are also concerned about programs, missions, or functions. A budget organized on the basis of its intended purpose is called a program budget. A program budget allocates money to functions or activities rather than to specific items of costs. A municipal budget of this type lists expenditures for such cost categories as protective services, leisure time opportunities, and administration. Few, if any, budgets are prepared exclusively on a program basis. Instead, program costs are usually broken into line items. The primary advantage of a program budget is that it shows the broad goals and purposes for which we are spending money and allows for setting priorities. The disadvantage is that it does not show the level of services that will be produced by the functions for which money has been allocated. This characteristic weakens its value as a tool for managing the quality and quantity of public service programs. Performance Budgeting Performance budgeting goes a step further than program budgeting by requiring the breakdown of service into workload or units of performance and the assigning of unit costs. A system of work measurement is used to evaluate productivity and effectiveness. The principal advantage of the performance type budget is that it shows both the activities of the city and the service levels of those activities and their respective costs. Thus, it can be a useful tool for regulating in a positive way, both the quality and quantity of city services. This characteristic makes the performance type budget the most useful of those types mentioned so far. However, it is also the most difficult to prepare. There are three reasons for this. First, it is difficult to define the units by which the work of the department or an activity or program can be measured. Second, even when the work unit can be defined, it may not be easy to establish a system, which will supply a reliable measure of the work output. And third, it requires much thought and study to establish acceptable service levels for various activities and programs. Zero Base Budgeting Traditional budgeting, whether line-item or program-oriented, tends to focus on how much you spent last year as a beginning point for budget preparation. That is to say that it is incremental, it adds an increment on top of last year's spending level generally without challenge and without consideration of alternatives or trade-offs. Zero Base Budgeting (ZBB) is a system whereby each activity or program, regardless of whether it is a new or existing program, must be justified in its entirety each time a new budget is formulated. Rather than using the previous year's budget as a base, ZBB assumes no base; all activities old and new must be explained and justified each year. The agency starts at zero. ZBB measures the desirability, need and beneficiaries of services as well as the reasonableness of the proposed costs, alternatives to the activity, and trade-offs between partial achievement of goals and the ability to fund all proposed budget expenditures. ZBB accomplishes this by dividing all the proposed activities or services of the governmental body into units of manageable size, subjecting them to detailed examination, and ranking them according to their importance. Revenues are matched against the list of services according to their rank. High-priority services are funded first. If money runs out, the low-priority services are not funded. The characteristics of ZBB can be summarized as follows: 1.Scrutiny of old or existing activities as closely as new or proposed activities; 2.Reallocation of resources from low-priority activities to high-priority activities; Budget Process 94 Page 459 of 1094 3.Emphasis on alternatives (levels of expenditures and services and methods of providing services); and 4.Allowance for budget reduction or expansion in a planned, logical manner. Dubuque Budget Approach The budget system being utilized by the City of Dubuque incorporates aspects of each of the several budget alternative types discussed here. The major characteristics of our budget system are: 1.It has line items for control and fiscal management purposes. 2.It is organized by program, department and fund. 3.It attempts to identify, analyze, and articulate the fundamental purposes and objectives of the Dubuque City government. This approach is intended to place emphasis upon commitments, accomplishments, and activities performed rather than upon items purchased and to provide for the establishment of priorities. It attempts to identify, quantify, and analyze the demands on and accomplishments of organizational units in terms of established goals, objectives, and purposes. Are we achieving our goals and living up to our promises? This requires the establishment of workload and demand indicators and evaluation criterion. It is performance that counts. 4.It attempts to identify all costs of each department, activity, and program, including capital expenditure, debt service, and employee benefit costs. What does an activity or department really cost? 5.It presents alternative service and funding levels for all activities in the operating budget. The purpose is to provide the City Council with the widest possible range of alternatives to maximize their opportunity for making policy decisions, assigning priorities and allocating scarce resources to accomplish their policy objectives. The City's budget approach involves the preparation of three budget documents. The Policy Budget, the Capital Improvement Program (CIP) Budget, and the Resident’s Guide. The Policy Budget includes the City department detail, by defining goals and objectives for all City departments and activities, relates them to cost and resource requirements and attempts to establish measures for evaluating accomplishment. Specific improvement packages are developed and included in the Policy Budget for alternative funding and service levels. The Policy Budget document shows the budget by line item for each Department and provides a basis for fiscal control once the budget is adopted. The Policy Budget emphasizes objectives, accomplishments, and alternative funding and service levels and is intended to keep the attention of the City Council and public on the major policy decisions involving what services the City government will provide, who will pay for them, and the implications of such decisions. The Capital Improvement Program (CIP) Budget represents the City of Dubuque’s five year physical development effort, attempts to address a variety of needs, which the City must meet if it is to maintain its physical facilities, meet its service commitments and provide for its future development. The CIP Budget reflects the City’s comprehensive plan and the goals and priorities established by the City Council. The first year of the five-year CIP Budget goes into the budget for the next year and deserves the most attention. The CIP Budget is updated each year so that City Council has the opportunity to change the next four years and add a new year. The Resident’s Guide pulls the entire budget together through visuals, narratives and summaries. It explains the budget, provides revenue, expenditure and personnel summaries and provides the City Council vision, goals and priorities on which the budget is based. Budget Process 95 Page 460 of 1094 ROLES AND RESPONSIBILITIES Budget preparation and administration is a shared responsibility between the City Council, City Manager, Finance Department, department manager, division manager, and supervisor. Each plays an important role in the fiscal management system and the quality of and satisfaction derived from the fiscal management system is a direct result of the efforts of the several participants. Lack of attention, failure to follow procedures and/or poor follow through at any level can undermine the best fiscal management system. Let's look at the roles each plays. City Council In a very real sense, budget preparation and administration begins and ends with the City Council. The City Council has the following responsibilities: 1.Establish City goals and major performance objectives. 2.Approve guidelines for preparing the annual operating budget. 3.Establish through adoption of an annual budget what services and the level of services to be provided and how they will be financed. 4.Establish rules for the conduct of the City's fiscal operations. 5.Monitor progress toward achievement of objectives. 6.Require independent audit of fiscal records and transactions. The City Manager The City Manager is responsible to the City Council for the day-to-day operation and administration of the City government. In terms of fiscal management, the City Manager has the following responsibilities: 1.Develop policy guidelines for City Council review and adoption. 2.Develop Maximum Property Tax Levy Resolution for City Council review and adoption. 3.Prepare and submit an annual operating budget and a five-year Capital Improvement Budget premised upon Council guidelines and goals and major performance objectives. 4.Ensure the adopted budget is properly administered. 5.Supervise the performance of all contracts for work to be done by the City. Authorize and direct the purchase of all supplies and materials used by the City. 6.Keep Council fully advised on financial conditions of the City. 7.Establish rules for conduct of fiscal operations for which he is responsible. Budget Process 96 Page 461 of 1094 Finance Department The Finance Department becomes an extension of the City Manager's Office for purposes of performing the delegated responsibilities. The responsibilities of the Finance Department include the following: 1.Administer the approved budget on a day-to-day basis to see that funds are being expended for the purposes approved and that all claims are supported by proper documentation. 2.Supervise sale of bond issues. 3.Administer centralized payroll system. 4.Administer decentralized purchase order system. 5.Assist the City Manager’s Office in preparing the budget. Department Managers, Division Managers, and Supervisors The critical role in the fiscal management system is performed by department managers and their division managers and supervisors. The fiscal management system will be only as good as they make it. Their role includes: 1.Responsibility for the efficient and effective operation of the activities and tasks under their direction. Line supervisors are expected to control costs and achieve results. 2.Responsibility for preparation of budget requests, which emphasize objectives and service levels as well as traditional line item explanations and justifications for various funding levels and development of measures for evaluating progress toward objectives. What is the level of accomplishment, which can be expected from various funding levels, and how do we measure it? It is absolutely essential in our approach to budget preparation that accomplishments, objectives, and estimated costs be established by those in the organization who know the most about it and can be held accountable. Those are the department managers and their division managers and supervisors. 3.Responsibility for recommending and explaining needs and opportunities for service changes; reductions as well as expansions. 4.Responsibility for providing the planned and approved service level within budget limitations. 5.Responsibility for day-to-day department and activity budget administration. BUDGET CYCLE The budget cycle is a sequence of events covering the life of a budget from beginning to end; from the City Manager's review of prior year accomplishments and future initiatives, to the City Council approval of the final budget amendment. The budget cycle is approximately twelve months long. The critical dates are spelled out in State law: April 30th is when the budget for the following fiscal year must be adopted by the City Council; and July 1st as the beginning of the fiscal year. Throughout the entire budget cycle, public input is encouraged to insure the adopted budget is resident-based. The budget cycle can be summarized as follows: Budget Process 97 Page 462 of 1094 SPRING City Council formulates negotiation strategy for collective bargaining. JUNE - JULY City Manager recommends budget carryover amendment for City Council approval. City Manager, along with Department Managers, review fiscal year accomplishments and identify future initiatives for City Council consideration during goal setting. AUGUST City Council holds 2-day goal setting to develop Vision and Mission statements, identify 5 year goals and establish Policy agenda including Top Priorities for upcoming fiscal year and Management Agenda/ special projects. SEPTEMBER OCTOBER City departments prepare Capital Improvement project information and budget requests for review by City Manager. OCTOBER NOVEMBER DECEMBER City departments prepare operating budget and other budget requests for review by City Manager. City Manager holds Public Input meetings to review issues and priorities for the capital budget and the operating budget. JANUARY FEBRUARY City Manager and Chief Financial Officer analyze, review and balance capital and operating budget requests and prepare final budget recommendation. MARCH City Manager presents draft Policy guidelines and Maximum Property Tax Resolution to City Council for City Council approval. MARCH APRIL City Council holds public meetings to review recommended budget by department. Meetings are held in the evening and are available for live viewing on City Channel Dubuque. APRIL City Council holds final public hearing on the recommended. The meeting is held in the evening and is available for live viewing on City Channel Dubuque. City Council adopts budget and city staff certifies budget by April 30 in compliance with State law. APRIL MAY Chief Financial Officer reviews budgeted revenues and expenses and recommends adjustments to more accurately reflect the anticipated revenues and expenses for the fiscal year ending June 30. City Council reviews and approves an amended fiscal year budget and city staff certifies the budget amendments by May 31 in compliance with State law. Budget Process 98 Page 463 of 1094 BUDGET AMENDMENT PROCESS Budget estimates may be amended and increased as the need arises to permit appropriation and expenditure of unexpended cash balances on hand and unanticipated revenues. Such amendment may be considered and adopted at any time during the fiscal year covered by the budget (but prior to May 31) by filing the amendments and upon publishing them and giving notice of the public hearing in the manner required in the State Code. Within ten days of the decision or order of the City Council, the proposed amendment of the budget is subject to protest, hearing on the protest, appeal to the state appeal board, and review by that body. A local budget must be amended by May 31 of the current fiscal year-to allow time for a protest hearing to be held and a decision to be rendered before June 30. Except as specifically provided elsewhere in the Iowa Administrative Code rules, all appropriation transfers between programs or funds are budget amendments and shall be prepared as provided in Iowa Code section 384.16. The program reference means any one of the following nine major areas of public service that the City Finance Committee requires cities in Iowa to use in defining its program structure: Public Safety, Public Works, Health & Social Services, Culture & Recreation, Community & Economic Development, General Government, Debt Service/Capital Improvement Projects, Business Type, and Non-Program. BUDGET ACCOUNTING BASIS The operating budget of the City of Dubuque is written so that available resources and anticipated expenditures are equal. The City’s accounting and budget records for general governmental operations are maintained on a modified accrual basis, with the revenue being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities incurred. Accounting records for the Enterprise and Internal Service Funds are maintained on the accrual basis, while the budget records are maintained on the modified accrual basis. Differences between budgetary policies and Generally Accepted Accounting Principles (GAAP) in the Enterprise and Internal Service Funds exist for several reasons. One reason is that existing procedures have worked well and continue to work well for administrative and control purposes. Some other reasons for differences between budget and GAAP are the treatment of interfund transfers, departmental capital outlay, debt service principal payments, and depreciation. The City’s budgeting practices include interfund transfers as revenue and expenditures, while GAAP classifies interfund transactions as other financing sources and uses. Also City management desires an operating statement budget line item for each anticipated cash outflow, including debt service and capital outlay. If the City budgeted the enterprise funds on a full accrual basis, capital outlay and debt service payments would not be reported in the operating statement. Depreciation expense, which is recognized in the accounting records, is not budgeted. Not providing for depreciation in the budget is a policy decision that has not adversely affected the funds. FUND ACCOUNTING BASIS The accounts of the City are organized on the basis of funds and groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, equities, revenues and expenditures or expenses. Budget Process 99 Page 464 of 1094 The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Employee Benefits Fund is used to account for pension and related employee benefit costs for those employees paid wages from the General Fund. The Community Development Fund is used to account for the use of Community Development Block Grant funds as received from federal and state governmental agencies. The Street Construction Fund is used to account for the resources and costs related to street capital improvements. The General Construction Fund is used to account for the resources and costs related to nonassignable capital improvements. The City reports the following major proprietary funds: The Sewage Disposal Works Fund is used to account for the operations of the City's sewage disposal works and services. The Water Utility Fund is used to account for the operations of the City's water facilities and services. The Stormwater Utility Fund is used to account for the operations of the City's stormwater services. The Parking Facilities Fund is used to account for the operations of the City-owned parking ramps and other parking facilities. The America's River Project is used to account for the construction of all projects covered by the Vision Iowa Grant, including all matching funds. The City reports the following non-major governmental funds: Airport Construction Fund - This fund is used to account for the resources and costs related to airport capital improvements. Sales Tax Construction Fund - This fund is used to account for the resources and costs related to capital improvements financed through the local option sales tax. Road Use Tax Fund - This fund is used to account for state revenues allocated to the City for maintenance and improvement of City streets. Section VIII Housing Fund - This fund is used to account for the operations of federal Section VIII existing, voucher, and moderate rehabilitation projects. Tort Liability Fund - This fund is used to collect a special property tax levy which is then transferred to the General Fund. The General Fund accounts for the administration and payment of damage claims against the City. Special Assessments Fund - This fund is used to account for the financing of public improvements that are deemed to benefit primarily the properties against which special assessments are levied and to accumulate monies for the payment of principal and interest on the outstanding long-term debt service. Tax Increment Financing Fund - This fund is used to account for the receipt of property taxes, for the payment of projects within the tax increment financing district, and for the payment of remaining principal and interest costs on the tax increment financing districts' long-term debt service. Budget Process 100 Page 465 of 1094 Cable TV Fund - This fund is used to account for the monies and related costs as set forth in the cable franchise agreement between the City of Dubuque and the cable franchisee. Library Expendable Gifts Trust - This fund is used to account for contributions given to the library to be spent for specific purposes. IFA Housing Trust- This fund is used to account for funds received under the Iowa Finance Authority State Housing Trust Fund Program. Debt service fund – This fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. Ella Lyons Peony Trail Trust Fund - This fund is used for dividends and maintenance cost related to the City Peony Trail, per trust agreement. Library Gifts Trust Fund - This fund is used to account for testamentary gifts to the City The City reports the following non-major proprietary funds: Refuse Collection Fund - This fund is used to account for the operations of the City's refuse collection services. Transit System Fund - This fund is used to account for the operations of the City's bus and other transit services. Governmental Fund Types (Budgetary) Governmental funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (other than those in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position. The following are the City's governmental fund types: •The General Fund is the principal operating fund of the City and accounts for all financial transactions not accounted for in other funds. The general operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are financed through revenues received by the General Fund. •Special Revenue Funds are used to account for revenues derived from specific taxes, governmental grants, or other revenue sources, which are restricted to finance particular functions or activities of the City. The City's special revenue funds include such funds as Road Use Tax, Community Development, UDAG Repayments, Section 8 Housing, Lead Paint Grant, State Rental Rehab, Cable TV, Special Assessment, Expendable Library Gifts Trust, Tort Liability, Employee Benefits, and TIF funds. •Debt Service Funds are used to account for the accumulation of resources for, and the payment of, principal, interest, and other related costs of the City's general obligation debt. The City uses this fund to pay some of the debt service paid from other funds with the revenue transferred in. Budget Process 101 Page 466 of 1094 •Permanent Funds are used to account for resources that are legally restricted to the extent that only the earnings, and not principal, may be used for purposes that support the reporting of governmental programs. The City’s permanent funds include: Lyons Peony Trust and Library Gifts Trusts. •Capital Improvement Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities. (Even if a capital project fund is used, not all capital acquisitions need be accounted for in the fund). For example, the routine purchases of capitalizable items (e.g., police vehicles, copy equipment) are typically budgeted and reported in the General Fund or other governmental fund. Proprietary Fund Types (Budgetary) The City also has proprietary fund types, which are different from governmental fund types in that their focus is on the determination of net income or loss. The revenue from these funds is assumed to be adequate to fund the operation of the funds. The City's proprietary funds are as follows: •Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through use charges or where the periodic determination of net income or loss is deemed appropriate. The City's enterprise funds include Water, Sewer, Stormwater, Refuse/Solid Waste, Transit, Parking and America’s River Project. • The Internal Service Fund accounts for the financing of goods and/or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost reimbursement basis. The City’s Internal Service Funds include Engineering Service, Garage Service, General Service and Stores/Printing. Self-Insurance Funds (Non-Budgetary) •The Self Insurance Funds are considered Internal Service Funds, are not budgeted, but are summarized in the audited financial statements. These include Health Insurance Reserve and Workers’ Compensation Insurance Reserve. Fiduciary Fund Types (Non-Budgetary) The City also has fiduciary fund types, which account for assets in a trustee or custodial capacity: • Pension Trust Funds account for assets of pension plans held by a government in a trustee capacity. The City of Dubuque has no such funds. • Private Purpose Trust Funds account for trust arrangements, including those for escheat property, where principal and income benefit individuals, private organizations, or other governments. The major use of private purpose funds is for escheat property. The City has no such funds. Budget Process 102 Page 467 of 1094 • Agency Funds account for those assets held solely in a custodial capacity by the City as an agent for individuals, private organizations, other governmental units, and/or other funds. The City’s Agency Funds include the Cable Equipment Fund (monies received from Mediacom through the Cable Franchise Agreement for distribution), Dog Track Bond Depreciation (monies held for dog track infrastructure needs), and the Dubuque Metropolitan Area Solid Waste Agency General and DNR Planning. These funds are not budgeted. Budget Process 103 Page 468 of 1094 FUND - DEPARTMENT RELATIONSHIP The various funds are grouped by type in the budget. The following fund types are used by the City: Budget Process 104 Page 469 of 1094 The following table shows each City department and its associated funds. Budget Process 105 Page 470 of 1094 KEY TERMS FOR UNDERSTANDING DUBUQUE'S BUDGET Program Programs are presented as general statements, which define a major purpose of City government. Each program is divided into several departments and activities representing a separate and significant segment of the program of which it is an integral part. The state budget law requires that the budget be certified on a program basis. The City of Dubuque uses the following nine programs: 1.Public Safety: Police Department, Emergency Communication Center, Fire Department, Disaster Services, Health Services-Animal Control activity, Public Works-Flood Control activity, Building Services-Inspection activities. 2.Public Works: Airport Department, Public Works Department, Engineering Department. 3.Health and Social Services: Human Rights Department, Health Services Department, Purchase of Services 4.Culture and Recreation: Parks Division, Recreation Division, Civic Center Division, Conference Center, Library Department, City Manager-Arts and Cultural Affairs activity. 5.Community and Economic Development: Economic Development Department, Housing and Community Development Department, Planning Services, Purchase of Services, City Manager- Neighborhood Development activity. 6.General Government: Building Services-City Hall/Annex Maintenance, City Council, City Manager, City Clerk, Finance Department, Cable TV Division, City Attorney l Department, Information Services Department. 7.Debt Service and Capital Projects in programs 1-6 for governmental funds. 8.Business Type (includes business type operating, capital and debt service): Water Department, Water Pollution Control Department, Parking Division, Transit Division, Public Works- Landfill activities and Garage internal service fund activities, Engineering-Sewer and Stormwater activities, Finance-Utility Meter Reads activity and Stores internal service fund activities. 9.Non-Program: City Manager-Health and Worker’s Compensation Insurance Reserve fund activities and Public Works-Dubuque Metropolitan Area Solid Waste activities. * Prior to Fiscal Year 2004, the State of Iowa, City Finance Committee changed the number of programs from 4 to 9 on the expenditure side. Operating Budget The Operating Budget represents the various recurring activities and services provided by the several departments in the City government. The Operating Budget provides those services normally associated with the City government (e.g., police, fire, street maintenance, recreation) and involves expenditures which benefit the current fiscal year. (That is, items purchased are used up during the current fiscal period.) Expenditures in the Operating Budget are for such categories as Employee Expense, Supplies and Services, and Debt Service. Funding of the Operating Budget includes property taxes, shared state and federal revenues, fees, fines, licenses, permits, user charges and cash balances. Budget Process 106 Page 471 of 1094 Capital Budget The Capital Budget represents major "permanent" capital improvement projects requiring the nonrecurring expenditures of public funds for the acquisition of property or easement, construction, renovation or replacement of a physical asset of the City and any studies, engineering or surveys which are an integral part thereof. The Capital Budget is multi-year in scope, is updated annually and includes project-funding information. The first year of the Capital Budget (or Capital Improvement Program) is included with the Operating Budget for the same year to arrive at a total or gross budget amount. Capital budget financing comes primarily from bond proceeds, state and federal grants, Road Use Tax funds, Dubuque Racing Association profit distribution, and utility depreciation funds. Expenditure Category Expenditure category or classification is the basis for classifying and codifying costs. Categories of expense include: (a) Employee Expense; (b) Supplies and Services; (c) Capital Outlay (Machinery and Equipment); (d) Debt Service; and (e) Capital Improvements. Categories of expense consist of various expense accounts. For example, Employee Expense is divided into expense accounts such as full-time, part-time & seasonal employees, overtime pay, holiday pay, social security expense and health insurance. Supplies and Services include accounts such as postage, telephone expense, office supplies, dues and memberships, utility expense - electricity, motor vehicle expense - fuel, library books, and architectural services. Revenue Category Revenue category or classification is a basis for classifying and codifying revenue. There are eight major categories or revenue, each divided into specific revenue items. The eight major categories of revenue are as follows: 1.Taxes 2.Licenses and permits 3.Use of Money and Property 4.Intergovernmental Revenue 5.Charges for services 6.Special Assessments 7.Miscellaneous Revenue 8.Other Financing Sources An example of the specific revenue items would include the following items in the licenses and permits revenue category: business licenses, cigarette licenses, beer permits, building permits, plumbing permits, heating permits, etc. Alternative Budget Levels The Dubuque budget system utilizes a variation of the zero-based budget (ZBB) approach utilizing three alternative funding or budget levels: Maintenance Budget Level, Base Budget Level and Improvement Level. Each alternative funding level includes specific objectives to be accomplished (service levels to be offered) and associated costs. The budget decision becomes one of selecting alternatives, which maximize the achievements of City objectives according to established priorities within the context of limited resources and City Council policy. Budget Process 107 Page 472 of 1094 BUDGET IN BRIEF 108 Page 473 of 1094 This page intentionally left blank. 109 Page 474 of 1094 BUDGET IN BRIEF The City Council will approve the fiscal year 2026 operating and capital budgets on April 28, 2025. The recommended FY 26 budget is balanced and includes a 3.90% property tax increase to the average homeowner for the City portion of their taxes. The keys to the City of Dubuque’s financial success include a continued growth in assessed property valuation (4.39% in FY 26); efficient operation with a 12.27% increase in the City’s workforce since the 1980’s; increased use of Federal and State grants; diversified revenue streams; minimal property tax supported debt; increased public and private partnerships; entrepreneurial City Council policy decisions; and caring residents, committed elected officials, hard-working not-for-profits, and talented city employees. The City’s five-year capital improvement plan (CIP) continues to allocate funding for the maintenance and refurbishment of city facilities. The approved five-year CIP totals $351,594,553. This budget in brief is intended to provide the residents of Dubuque with an overview of the approved operating and capital budgets. Throughout this document, you will find highlighted sections noting the location of detailed information in the approved budget document. Detailed information related to the approved budget can also be found on the City’s website at www.cityofdubuque.org. Fee Increases for Fiscal Year 2026 Various fee increases will be implemented beginning on July 1, 2025. These fee increases are intended to provide additional revenues to maintain and expand the level of service in various areas. The following is a summary of the increased fees: Water, Sewer, & Stormwater Increases - Fee increases for water, sewer, and stormwater will be effective July 1, 2025: sewer rates will increase by $4.92 per month for an average residential customer, water rates will increase by $3.60 per month for an average residential customer; solid waste collection rates will increase by $0.86 per month for an average residential customer; and stormwater rates will increase $0.53 per month per standard family unit (SFU) equivalent. Recreation Fee Increases - Annual Golf fee increases/decreases to maintain 100% self-support guideline: $1 increase on all golf daily fees. Planning Services Fee Increases - Increase multiple planning and zoning application fees by 2% to accurately reflect the cost of providing service. Budget in Brief 110 Page 475 of 1094 FY26 RECOMMENDED BUDGET The City’s recommended budget provides estimated revenues and expenditures for programs and services to be provided during the fiscal year from July 1, 2025 through June 30, 2026. A separate capital budget includes appropriations for infrastructure related to projects, such as roads, buildings, and equipment that may require more than one fiscal year to complete or to acquire. OPERATING & CAPITAL BUDGET SUMMARY OPERATING $ 184,381,340 CAPITAL $ 91,803,749 General Fund $ 91,188,483 General Fund $ 320,817 Special Revenue Funds $ 25,407,182 Special Revenue Funds $ 2,639,474 Debt Service Fund $ 12,424,200 Capital Projects Funds $ 45,344,449 Enterprise Funds $ 44,439,403 Enterprise Funds $ 36,818,354 Internal Service Funds $ 5,855,145 Internal Service Funds $ 0 Trust & Agency Funds $ 5,066,927 Trust & Agency Funds $ 6,680,655 APPROPRIATED BUDGET BY FUND The City’s total appropriated operating budget of $184.4 million is made up of the general, special revenue, debt service, enterprise, internal service, and trust and agency funds. A complete self-contained budget, including both revenues and expenses, is prepared for each of these funds. FY26 Operating Appropriations by Fund General Fund 49% Debt Service 7% Internal Service 3% Special Revenue 14% Trust & Agency 3% Sewer 8% Stormwater 2% Parking 3% Water 6% Solid Waste 2% Intermodal Ramp 0% Transit Fund 3% Transfers from one fund to another, such as a transfer from the general fund to a capital project fund to offset costs of a capital project, are shown as an expense (or transfer) for the entity fund providing the funding and as revenue to the fund receiving the transfer. In order to determine the actual amount of expenditures authorized by the budget, the transfer amount must be excluded. All funds are balanced in fiscal year 2026. The City’s general fund is balanced in 2026. Utility funds are balanced in fiscal year 2026 as a result of rate increases. For additional information on the amount of funding included for each fund, total funding by department, and detailed information on reserves, see the Financial Summaries section. Budget in Brief 111 Page 476 of 1094 How General Fund Money is Spent The general fund is the operating fund of the City for general service departments. The general fund has an operating budget of $91.2 million and a capital budget of $0.3 million. This fund encompasses the bulk of activities that are traditionally considered basic governmental services such as public safety, culture & recreation, health & social services, and general government. 42.9 %PUBLIC SAFETY (animal control, building inspections, crime prevention, emergency management, flood control, fire police, etc.) 18.6 %CULTURE & RECREATION (AmeriCorps, arts & cultural affairs, civic center, conference center, library, marina, parks, recreation, etc.) 16.3 %GENERAL GOVERNMENT (city attorney & legal services, city clerk, city council, city hall & general buildings, city manager, finance, information services, etc.) 9.6 %PUBLIC WORKS (airport, maintenance of streets, bridges, and sidewalks, snow removal, street cleaning, street lighting, traffic control, etc.) 6.5 % COMMUNITY & ECONOMIC DEVELOPMENT (economic development, housing and community development, neighborhood development, planning and zoning, etc.) 4.5 %TRANSFERS OUT (to funds other than General Fund) 0.3 %CAPITAL PROJECTS (City infrastructure improvements or major equipment purchases) 1.2 % HEALTH & SOCIAL SERVICES (community health, health regulation and inspection, human rights, etc.) 0.1 %DEBT SERVICE (government capital projects, tax-increment financing [TIF] capital projects) FY26 How General Fund Money is Spent Public Safety 43% Public Works 19% Health 16% Culture & Recreation 10% Community & Economic Development 6% General Government 5%Debt 0% Transfers Out 1% Capital 0% Budget in Brief 112 Page 477 of 1094 GENERAL FUND REVENUE & EXPENDITURES General Fund Operating Sources Taxes 43% Licenses & Permits 2% Use of Money & Property 3% Grants 51% Charges for Services 0%Miscellaneous 1% Transfers in 1% General Fund Operating Uses Employee Expense 69% Supplies & Services 28% Capital Outlay 3% SPECIAL REVENUE FUNDS The special revenue funds have an operating budget of $25.4 million and a capital budget of $2.6 million. Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. The City’s special revenue funds include: Employee Benefits; Community Development; Road Use Tax; Section 8 Housing; Tort Liability; Special Assessments; Tax Increment Financing; HUD Disaster Relief; Housing Trust; Cable TV; and Library Expendable Gifts. Special Revenue Operating Sources Taxes 43% Licenses & Permits 2% Use of Money & Property 3% Grants 51% Charges for Services 0.3% Miscellaneous 1% Transfers in 0.7% Special Revenue Operating Uses Employee 27% Supplies & Services 68% Capital Outlay 4% Non- Expense 2% Special Revenue Funds budgets are shown in the Financial Summaries section. Budget in Brief 113 Page 478 of 1094 DEBT SERVICE FUND The debt service fund has an operating budget of $12.4 million. The debt service fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. Debt Service Sources Transfers In - General 1.1% Taxes 2.4% Grants 0.1% Transfers In - Special Revenue 40.5% Transfers In - Capital 55.9% Debt Service Uses Principal 68% Interest 32% Additional information on the Debt Service Fund is shown in the Debt Summaries section. ENTERPRISE FUNDS Enterprise funds are expected to be self-supporting and expected to be funded entirely from user fees for services. Except for Transit, no tax revenues are used for these activities in the FY 2026 budget. A transfer from the general fund to the Transit fund is budgeted to fund transit operations in the City. Each utility transfers revenue to the general fund for general government services. Transfers from the utilities in FY 2026 to support general government services total $6,972,816. •Sewer Utility $1,980,288 •Stormwater Utility $1,192,164 •Parking $254,963 •Water Utility $1,512,215 •Solid Waste $1,508,564 •Landfill $524,622 Enterprise Funds budgets are shown in the Financial Summaries section. Budget in Brief 114 Page 479 of 1094 INTERNAL SERVICE FUNDS Internal service funds provide goods or services to other department within the City, with full costs to be recovered. An example of this would be the City’s Garage Service. These expenses are included in both the department budget providing the service, as well as in the budget of the department receiving the service. To avoid double counting, the appropriated budget includes only the budgets for the departments receiving internal services (Engineering Service $2,315,426 and Garage Service $3,539,719). STAFFING CHANGES The City of Dubuque has 775.82 (FTE) employees budgeted in FY 2026. This represents a net decrease of -0.40 FTE’s from FY 2025. Since 1981, the city has minimized the number of positions added. The recommended budget provides funding for a net decrease of -0.40 FTE’s related to general fund departments. Funding has been changes to include the following changes to FTE's: •The Communications Office had the following change: removed the part-time Commutations Assistant (-0.75 FTE). •The Office of Equity and Human Rights had the following change: removed a full-time Equity and Human Right Specialist position (-1.00 FTE). •The Finance Department had the following changes: added a full-time Budget/Financial Accounting Analyst (+1.00 FTE). •The Police Department had the following changes: removed six full-time Police Officer positions (-6.00 FTE). Added three full-time Precision Police Technicians (+3.00 FTE). Added one full-time Crime Analyst Position (+1.00 FTE). Added one full-time Criminal Computer Forensics position (+1.00 FTE). •The Public Works Department had the following changes: added a full-time Project and Facilities Manager (+1.00 FTE). Increased a Custodian position from part-time to full-time (+0.32 FTE). •The Human Resources Department had the following changes: limited term temporary Scanning Clerk position (one year) was originally approved in FY25 and therefore not budgeted in FY26 (-.50 FTE). •Airport had the following changes: removed two part-time customer service representatives (-1.50 FTE) and added Administrative Support Professional (+1.00 FTE). •The City Manager’s Office had the following changes: removed a part-time Director of Strategic Partnerships (-0.75 FTE), a full-time, temporary Management Intern (-1.00 FTE), and a full-time Grant Analyst (-1.00 FTE). Added a full-time Director of Strategic Partnerships (+1.00 FTE), and a full-time Management/Grant Analyst (+1.00 FTE). •Economic Development added the following position: full-time Financial/Project Specialist (+1.00 FTE). •Emergency Communications had the following changes: removed part-time dispatchers (-0.94 FTE) and added full-time dispatchers (1.00 FTE). •Engineering had the following changes: removed part-time I & I Inspector (-1.46 FTE) and added full-time I & I Inspector (1.0 FTE) and part-time Sidewalk Inspector (0.73 FTE). Budget in Brief 115 Page 480 of 1094 •The Parks division had the following changes: removed part-time Laborer (-0.61 FTE) and added full-time Maintenance Worker (+1.00 FTE). •Recreation had the following change: changed part-time Golf Pro (-0.94 FTE) to full-time Golf Pro (+1.00 FTE). Airport: PT Customer Service Representative -1.50 Airport: FT Administrative Professional Support +1.00 City Manager’s Office: FT Management Intern -1.00 City Manager’s Office: FT Grant Analyst -1.00 City Manager’s Office: PT Director of Strategic Partnerships -0.75 City Manager’s Office: FT Director of Strategic Partnerships +1.00 City Manager’s Office: FT Management/ Grant Analyst +1.00 Communications: PT Communications Assistant -0.75 Economic Development: FT Financial/ Project Specialist +1.00 Emergency Communications: FT Dispatcher +1.00 Emergency Communications: PT Dispatcher -0.94 Engineering: PT I & I Inspector -1.46 Engineering: FT I & I Inspector +1.00 Engineering: PT Sidewalk Inspector +0.73 Equity and Human Rights: FT Equity and Human Rights Coordinator -1.00 Finance: Budget/Financial Accounting Analyst +1.00 Human Resources: LT Scanning Clerk -0.50 Parks: FT Maintenance Worker +1.00 Parks: PT Laborer -0.61 Police: FT Crime Analyst Position +1.00 Police: FT Crime Computer Forensics +1.00 Police: FT Police Officers -6.00 Police: FT Precision Police Technicians +3.00 Public Works: Custodian +0.32 Public Works: Project and Facilities Manager +1.00 Recreation: FT Golf Pro +1.00 Recreation: PT Golf Pro -0.94 Total Recommended FTE’s FY 2026 775.82 Total FTE’s FY 2025 776.22 Budget in Brief 116 Page 481 of 1094 SUMMARY OF PERSONNEL APPROPRIATIONS AND POSITIONS BY DEPARTMENT Department/Service Fiscal Year 2024 Fiscal Year 2025 Budget Fiscal Year 2026 Budget FY 2024 FTE's FY 2025 FTE's FY 2026 FTE's Police $ 9,972,425 $ 10,612,834 $ 10,926,068 125.75 125.75 124.75 E911 1,270,079 1,323,915 1,377,035 20.35 20.35 20.41 Fire 8,229,529 9,181,752 9,006,086 101.16 104.16 104.16 Office of Equity & Human Rights 268,103 281,877 207,684 3.00 3.00 2.00 Health Services 529,894 577,381 613,872 7.14 7.14 7.14 Multicultural Family Center 346,184 340,466 312,479 5.49 5.49 5.01 Parks Division 2,174,707 2,304,830 2,340,694 39.59 39.59 39.98 Community Impact 314,116 362,774 401,836 5.00 5.00 5.00 Civic Center 21,746 23,974 25,335 0.15 0.15 0.15 Conference Center 22,746 23,974 25,335 0.15 0.15 0.15 Recreation 1,833,430 1,970,316 2,079,457 42.25 42.25 42.79 Library 2,295,705 2,371,717 2,436,197 35.52 35.52 35.52 Airport 1,154,624 1,226,274 1,351,887 19.70 19.70 19.20 Transportation Services 2,707,003 2,882,325 2,958,444 54.01 55.20 55.20 Engineering 3,109,975 3,340,025 3,562,044 40.92 41.71 41.98 Water 1,846,863 1,918,881 1,930,355 27.07 27.07 27.07 W&RRC 1,231,964 1,347,665 1,420,815 17.00 17.25 17.25 Public Works 6,003,676 6,296,108 6,498,547 95.06 96.06 97.38 Economic Development 332,652 368,423 463,931 3.75 3.75 4.75 Housing & Community Dev. 2,516,028 2,694,018 2,972,739 21.75 36.00 36.00 Planning Services 571,327 674,308 736,346 8.38 8.38 8.38 Human Resources 584,987 689,887 737,586 7.75 8.25 7.75 Office of Shared Prosperity 242,348 325,702 366,115 3.66 4.00 4.00 Communications Office 584,161 709,514 713,198 8.25 9.25 8.50 City Council 81,400 81,400 81,400 3.50 3.50 3.50 City Manager’s Office 970,753 1,075,242 1,107,308 10.42 10.42 9.67 City Clerk 249,996 289,832 313,559 4.00 4.00 4.00 Finance Department 1,338,776 1,863,476 2,010,774 20.51 24.51 25.51 City Attorney 613,247 675,751 708,779 5.62 5.62 5.62 Information Services 912,981 1,143,644 1,161,565 12.00 13.00 13.00 Total $ 52,331,425 $ 56,978,285 $ 58,847,470 748.90 776.22 775.81 HOW IS THE BUDGET FUNDED? Property Taxes General fund, transit, payroll benefit costs, and general liability insurance expenses are supported by property tax dollars. The property tax rate for fiscal year 2026 is $10.06373 per $1,000 of taxable valuation. It is estimated that a total of $29,855,822 will be received from property taxes in FY 2026. This is increase from fiscal year 2025. For FY 2026 there is a 3.90% or $33.38 property tax increase for the City portion of property taxes paid by the average homeowner. Budget in Brief 117 Page 482 of 1094 Other Taxes Other taxes that the City collects include local option sales tax, hotel/motel tax, and tax on agricultural land. In 2026, approximately $12,905,936 will be received in local option sales tax. This decreased 0.17% under FY 2025. Of this amount, 50% is for property tax relief ($6,264,403), 20% is for City facilities maintenance ($2,505,761), and 30% is for special assessment relief ($3,758,642). In 2026 approximately $3,910,460 will be received in hotel/motel tax. By resolution, 50% of this amount is to be used for promotion and encouragement of tourism and convention business and the remaining 50% goes into the General Fund for property tax relief. Licenses and Permits Fees from licenses include business, beer, liquor, cigarette, dog, cat, bicycle, housing, and other miscellaneous. Fees from permits include building, electrical, mechanical, plumbing, refuse hauling, excavation, subdivision inspection, swimming pool inspection, animal impoundments, and other miscellaneous. The City estimates $4,477,648 in licenses and permits in FY 2026. Also included are cable TV franchise fees (5%) and utility franchise fees (5% gas & 5% electric). The FY 2026 projection for cable franchise fees is $339,336 and utility franchise fee projection is $6,106,745. The utility franchise fees are all used for property tax relief. Use of Money and Property This category includes interest and investment earnings collected, rent received from City owned property, and lease revenue, which is estimated at $22,190,268 in FY 2026. The gaming related leases generate the most revenue. The lease with the Dubuque Racing Association (DRA) includes collection of 1.5% of coin-in (1% prior to 1/1/22), 4.8% of gross revenue from table games, 0.5% of sports wagering, and a distribution of profit from the DRA of 50%. Diamond Jo also pays a parking lease. City Council’s policy is to use 100% of the DRA distribution of profit to support the Capital Improvement Budget and the total received from DRA operating and taxes is split 100% for property tax relief and —% for capital projects. Gaming leases are projected to be $7,213,362 in FY 2026. Riverfront leases are expected to generate $4,273,045 in FY 2026. Intergovernmental Revenue Intergovernmental revenues are projected to increase 22.46% from FY 2025. The city is estimated to receive $58,245,768 in Federal and State grants, State Road Use Tax Funds, and County Contributions. Prior years included large increases due to American Rescue Plan Act Funds. Charges for Services This includes revenue from charges for services for Water, Sewer, Stormwater, Solid Waste, Transit, Parking and Landfill. Rate increases have been incorporated into all utilities (as shown on the “Fact Sheet” under the Budget Overviews tab). Rate increases were necessary due to a combination of operating costs rising, additional capital projects to support additional debt service and to meet revenue bond covenants. Utility charges are projected to be $46,462,310. Other charges for services include copy charges, sales of maps and publications, street, sidewalk, and curb repairs, special Police services, Library services, Recreation programs, etc. Other charges for services are estimated at $6,236,051 in FY 2026. Special Assessments Special assessments are an additional tax levied on private property for public improvements that enhance the value of the property. In FY 2026, special assessment revenue is estimated at $117,657. Miscellaneous Revenue This category includes internal charges for services, proceeds from bonds, and revenues of a non- recurring nature. Miscellaneous revenues are estimated at $44,584,339 in FY 2026. Budget in Brief 118 Page 483 of 1094 RECOMMENDED CAPITAL IMPROVEMENT PLAN The City of Dubuque’s Capital Improvement Plan (CIP) represents the City’s five-year plan for capital improvements and totals $351,594,553. Appropriations of funding are made on an annual basis. The capital budget is therefore the first year of the five-year CIP. The approved capital budget for fiscal year 2026 totals $91,803,749. The recommended CIP reflects the City’s comprehensive plan and the goals and priorities established by the City Council. Funding required to meet the capital needs for FY 2026 totals $91.8 million. Approximately 75.89% ($56.8 million) of this will be provided by issuance of new debt, primarily for sewer utility related projects ($18.0 million) and Greater Downtown TIF related projects ($5.3 million). Another funding source representing approximately 21.09% of total sources is operating receipts. Operating receipts come from current year revenues and essentially represent the amount of “cash” or pay as you go financing provided by each enterprise operation. A major focus of the capital budget and capital improvement plan is the maintenance and refurbishment of existing city facilities. To this end, significant resources are dedicated for these types of projects including, Bee Branch Creek Watershed, Airport, Fire facilities, Civic Center, Grand River Center and Street, Sanitary and Water Improvements. The following page provides a listing of some of the highlighted projects in the fiscal year 2026 capital budget. The Capital Budget in the Resident’s Guide includes a summary by department of all projects planned through FY 2030. Budget in Brief 119 Page 484 of 1094 FY26 RECOMMENDED CAPITAL BUDGET HIGHLIGHTS Fire Bunk Room Remodel $1,175,000 Fire Outdoor Warning Siren Repair/Replace $107,060 Fire Fire Station Expansion $500,900 Fire 2027 Fire Engine Replacement (1907) $900,000 Fire 2027 Ambulance Replacement (1914) $450,000 Fire 2028 Fire Engine Replacement (1905) $950,000 Fire Portable Radio Replacements $838,000 Fire 2030 Fire Engine Replacement (1910) $1,288,408 Fire 2030 Ambulance Replacement (1915) $575,000 Parks Reimagine Comiskey $1,697,000 Parks Rustic Point Park Development $305,000 Parks South Pointe Park Development $200,000 Parks Washington Community Gateway $99,000 Parks Second Dog Park Planning $60,000 Parks Ash Tree Removal and Tree Replacement $464,611 Civic Center Five Flags Building Improvements $23,454,000 Recreation Port of Dubuque Flood Wall Dubuque Welcome Sign $33,000 Conference Center Roof Restoration $1,383,000 Conference Center Public Restroom Remodels $385,000 Water Admiral Sheehy Drive Water Main Loop $686,400 Water Public Lead Line Water Main Replacement $45,000 Water Source Water PFAS Reduction Project - Granular Activated Carbon Filter Rehabilitation $9,600,000 Water Source Water PFAS Reduction Project $1,121,199 Water Water Main Replacement Consent $1,280,000 Water Water Meter Replacement Program $937,000 Water Water Storage Maintenance Program $3,000,000 W&RRC Bar Screen Replacement $2,500,000 W&RRC WRRC Plant Nutrient Reduction Improvements and BOD/Flow Capacity Improvements $7,035,000 W&RRC Industrial Controls Upgrade $1,900,000 Airport Reconstruct Taxiway A $18,709,994 Airport Reconstruct General Aviation Apron $2,480,000 Airport Asphalt Pavement Repair/T-Hangar Apron Rehabilitation $1,425,000 Airport Taxiway D Extension $2,940,000 Public Works Asphalt Milling Program $739,616 Public Works Curb Ramp Program $2,900,000 Public Works Vehicle Fuel Island Rehabilitation $510,200 Public Works 58,000 Gross Vehicle Weight (GVW) Dump Truck Replacement $1,721,768 Department Project Title Total City Investment FY2026-FY2030 Budget in Brief 120 Page 485 of 1094 Public Works Solid Waste Collection Vehicles - 3401 & 3405 $220,000 Public Works Solid Waste Collection Vehicles - 3404 & 3410 $375,000 Public Works Solid Waste Collection Vehicles -3403 & 3407 $595,000 Public Works Solid Waste Collection Vehicles 3412 & 3413 $375,000 Public Works Solid Waste Collection Vehicles 3411 & 54003 $845,000 Public Works Landfill 3C Project $4,000,000 Engineering Stormwater Management Program $1,000,000 Engineering Bee Branch Creek Gate & Pump Replacement $13,696,697 Engineering Flood Control Maintenance Facility $3,556,000 Engineering Sanitary Sewer Lining Program $1,000,000 Engineering Sanitary Sewer CCTV Inspection, Cleaning, & Assessment $1,000,000 Engineering Cedar and Terminal Street Lift Station and Force Main Assessment and Improvements $1,500,000 Engineering Old Mill Road Lift Station & Force Main - Phase 1 $9,694,574 Engineering Old Mill Road Lift Station & Force Main - Phase 2 $11,968,650 Engineering Track Line Sanitary Sewer Reconstruction $5,000,000 Engineering Catfish Creek Sewershed Interceptor Sewer Improvements - South Fork $13,927,212 Engineering Catfish Creek Sewershed Interceptor Sewer Improvements - Middle Fork $23,800,000 Engineering South West Arterial Interchange Sewer Extension $4,829,838 Engineering Force Main Stabilization $1,700,000 Engineering East - West Corridor Capacity Improvements $1,085,000 Engineering 7th Street Extension to Pine Street $2,000,000 Engineering 14th St Overpass $39,120,000 Engineering US 20 - Northwest Arterial Intersection Operational and Capacity Improvements $5,497,000 Engineering Central Avenue Corridor Streetscape Master Plan Implementation Improvements 11th - 22nd Street $8,170,000 Engineering Public Electric Vehicle Chargers $1,888,760 Engineering Iowa Amphitheater on Schmitt Island $9,641,563 Engineering STREETS Traffic Control Project Phase 1 $250,000 Engineering STREETS Traffic Control Project Phase 2 $282,350 Engineering Traffic Signal Network Communications Program $395,000 Engineering Fiber Infrastructure Management System $275,000 Engineering Federal Building Renovation $7,893,225 Economic Development Greater Downtown Housing Creation Grant Program $3,750,000 Economic Development Workforce Development $1,857,500 Department Project Title Total City Investment FY2026-FY2030 Budget in Brief 121 Page 486 of 1094 Economic Development Downtown Rehab Grant Program $1,000,000 Economic Development Central Avenue Housing Forgivable Loan $750,000 Transportation Transit Vehicle Replacement $3,152,568 Transportation Smart Parking System $780,000 Transportation Parking Ramp Major Maintenance Repairs $7,198,400 Housing Assistance for Homeownership $1,356,151 Housing Washington Neighborhood Home Purchase Program $1,269,896 Housing Homeowner Rehabilitation Program $1,325,000 Housing Lead and Healthy Homes Grant $6,000,000 Housing Healthy Homes Production Grant $2,000,000 Planning Historic Preservation Technical Assistance Program $80,000 Communications Office Aerial Orthophotography $252,000 City Manager's Office Community Green House Gas Inventory and Climate Action Planning $100,000 Information Technology City-Wide Computer and Printer Replacements - General Gov $3,323,473 Information Technology City-Wide Computer and Printer Replacements- Business $643,000 Department Project Title Total City Investment FY2026-FY2030 Budget in Brief 122 Page 487 of 1094 This page intentionally left blank. Budget in Brief 123 Page 488 of 1094 COMMUNITY INFORMATION 124 Page 489 of 1094 This page intentionally left blank. 125 Page 490 of 1094 Dubuque is Iowa’s oldest city and is among the oldest settlements west of the Mississippi River. The first permanent settler to the area was French-Canadian fur trader Julien Dubuque. When he arrived in 1785, the Mesquakie (Fox) Indians occupied the region which included an abundant amount of lead mines. On June 1, 1833, the land was opened for settlement by the United States government under the Black Hawk Purchase Treaty and came to be known as the city of Dubuque. Dubuque has long been a historical and cultural center with its numerous historic sites, architectural Historic Districts with well-preserved buildings and homes, a revitalized main street, history and art museums, live theaters, ballet troupes, a symphony, three private colleges, two seminaries, a Bible college, libraries and a local history research center, recreational and sports venues, beautiful parks, a state park and nature interpretive center, miles of hiking and biking trails and the great Mississippi River. Recent recognitions include being named an Iowa Thriving Community for using innovative solutions to enhance housing offerings to residents of all income levels, one of the 100 Best Communities for Young People, the Most Livable Small City in the US, an Iowa Great Place, an All-America City five times between 2007 and 2019, and a LEED- Certified City (Leadership in Energy and Environmental Design). Dubuque scored 100 out of 100 on the 2021 Municipal Equality Index, issued by the Human Rights Campaign (HRC), based on the inclusiveness of its laws, policies, and services for lesbian, gay, bisexual, transgender, and q u e e r ( L G B T Q ) r e s i d e n t s . D u b u q u e w a s n a m e d t h e 2 0 2 4 I o w a C o m m u n i t y o f C h a r a c t e r b y t h e R o b e r t D . and Billie Ray Center at Drake University as part of its annual Iowa Character Awards, which annually recognize Iowa individuals, organizations, and communities which demonstrate the six pillars of CHARACTER COUNTS®: trustworthiness, respect, responsibility, fairness, caring, and good citizenship.Dubuque is truly a “Masterpiece on the Mississippi.” Community Information 126 Page 491 of 1094 ACCORDING TO THE 2023 AMERICAN COMMUNITY SURVEY (ACS), THE CITY OF DUBUQUE'S DEMOGRAPHICS INCLUDE THE FOLLOWING: AGE Under 5 Years 5.8% 5-19 Years 17.5% 20-44 Years 34% 45-64 Years 22.3% 65 years and better 20.4% POPULATION Total Population: 59,271 Female Population: 51.1% Male Population: 48.9% Average Household Size: 2.15 Family Households: 59.1% Non-Family Households: 40.9% Average Family Size: 2.85 Median Age: 38.3 years RACE White or Caucasian 86.6% Black or African American 4.2% American Indian and Alaska Native 0.2% Asian 1.5% Hawaiian & Other Pacific Islander 1.2% Some Other Race 1.1% Two or More Races 5.1% HOUSING Total Housing Units: 27,629 Housing Occupancy: 93.4% Owner-Occupied: 64.8% Renter-Occupied: 35.2% INCOME Median Household Income: $64,985 Median Family Income: $86,224 Families below poverty: 6.9% Individuals below poverty: 12.2% DUBUQUE’S LOCATION Situated at the intersection of Iowa, Illinois, and Wisconsin, the community of Dubuque, Iowa, stands among the Mississippi River bluffs as a metropolitan service area for seven surrounding counties. Dubuque is connected by four-lane highways to Davenport, Des Moines, Madison and Minneapolis. The majority of the way to Chicago is also four-lane highway. Dubuque is centrally located amongst several major metropolitan areas. The Dubuque Regional Airport serves both business and leisure travelers with service through Envoy (formerly American Eagle) between Dubuque and Chicago's O'Hare International Airport. Private and corporate jets also make use of the great central location of the airport as well. Land Area: 32.0 square miles Riverfront shoreline: 8.8 miles Community Information 127 Page 492 of 1094 Community Information 128 Page 493 of 1094 SERVICES PROVIDED BY THE CITY OF DUBUQUE Airport Ambulance & EMS Animal Control Arts & Culture Building Permits Campground Civic Center Conference Center Community Development Economic Development Emergency Communications/911 Emergency Notifications Fire/Rescue Golf Course Health Services Historic Preservation Housing Human Rights RECREATION OPPORTUNITIES 55 parks with 1,247 acres 31 park shelters 15 tennis courts 9 pickle ball courts 6 combination volleyball/pickle ball courts 22 restroom buildings 4 accessible fishing piers 3 skate parks 1 pet park 288 units of play equipment 1 disc golf course 1 in-line hockey rink 10 softball fields 1 all-inclusive baseball field 1 baseball field 4,500 street trees 56 miles of on/off street trails 1,000 picnic tables 7 basketball courts 8 half basketball courts 2 amphitheaters 17 horseshoe pits 1 splash pad Library Licenses & Permits Marina Parking Parks Planning & Zoning Police Recreation Sanitary Sewer Sidewalks Snow & Ice Control Street Maintenance Stormwater Management Transit Trash & Recycling Utility Billing Water Wastewater CULTURAL AMENITIES In Dubuque there are over 45 non-profit arts and cultural organizations that provide year-round cultural programming in Dubuque and the surrounding area. Dubuque is home to a world-class Symphony Orchestra and Arboretum, two Smithsonian Affiliates - the Dubuque Museum of Art and the National Mississippi River Museum and Aquarium, the Julien Dubuque International Film Festival (JDIFF), multiple community theater groups including Grand Opera House, Bell Tower, Rising Star and Fly By Night. There are on average over 125 special events throughout the year from community festivals to outdoor music venues to parades and neighborhood events. Community Information 129 Page 494 of 1094 WORKFORCE Today there are over 12,000 employees working in downtown Dubuque. Dubuque leads the State in downtown rehabilitation and development with over $896 million of public and private investment since 1985. According to the latest data from Iowa Workforce Development (December 2024), Dubuque’s employment is at 60,100. Dubuque County’s unemployment rate for December 2024 was 3.4% while Iowa’s rate was 3.3% and the nation’s was 4.1%. The top ten employers in the area employ less than 21% of the total workforce. Peninsula Gaming Co. LLC, the greatest revenue source among all taxpayers, contributes approximately 2% of the City’s taxable valuation. TOP EMPLOYERS Employer Employees John Deere* 2,600 Dubuque Community School 1,957 MercyOne Medical Center 1,410 Medical Associates 1,061 Unity Point Health-Finley Hospital 975 Andersen Windows 750 City of Dubuque 737 Sedgwick 725 Cottingham & Butler 715 Dubuque Bank and Trust 600 Source: Source: Greater Dubuque Development Corporation. *Located just outside the City limits. MAJOR TAXPAYERS (In Thousands of Dollars) Taxpayer Taxable Valuation Peninsula Gaming Co. LLC $ 57,487 Kennedy Mall Inc.$ 30,088 Progressive Processing LLC $ 22,852 MAR Holdings LLC $ 20,336 KMDE LLC $ 16,887 Walter Development LLC $ 13,348 Nordstrom, Inc.$ 13,320 MGI Leasing Inc.$ 12,547 MRE Propco LP $ 11,457 Source: Dubuque County Iowa Auditor's Office EMPLOYMENT BY INDUSTRY 22% 18% 11% 8% 2% 8% 5%3%5% 5% 6% 3% 3% 1%0% Educational/Health/Social Services Manufacturing Retail Trade Accommodation/Food Services Other Services Finance/Insurance/Real Estate Wholesale Trade Government Construction Professional/Scientific/Management Transportation/Warehousing Public Administration Arts/Entertainment/Recreation Information Agriculture/Forestry/Fishing/Hunting Community Information 130 Page 495 of 1094 As elected officials, the Mayor and City Council serve as a City Council Representative on a number of local, not-for-profit and partner organizations. Appointments are made at the request of the organization or are included in the organization’s Bylaws or Articles of Incorporation. These appointments are affirmed every year by the City Council at an official meeting. Dubuque County Conference Board Convention & Visitor's Bureau Board of Directors Convention and Visitors Bureau Advisory Committee Convention and Visitors Bureau Sister City Committee County Resource Enhancement and Protection Act (REAP) Committee Dubuque County Early Childhood Board Dubuque County Emergency Management Council Dubuque Initiatives Dubuque Main Street Dubuque Metropolitan Area Solid Waste Agency Dubuque Metropolitan Area Transportation System (DMATS) Dubuque Racing Association Four Mounds Foundation Friends of the Mines of Spain Advisory Board Greater Dubuque Development Corporation (GDDC) Pre-Disaster Mitigation Plan Committee (PDMP) River Valley Initiative Foundation Board of Directors Community Information 131 Page 496 of 1094 City of Dubuque Boards and Commissions Individuals serving on Boards and Commissions play an important role in advising the City Council on matters of interest to our community and its future. The City Clerk's Office accepts applications for any Board or Commission at any time, and the application stays active for one year from the date of receipt in the Clerk's Office. Applicants must be a resident of the City of Dubuque. Some boards and commissions may require compliance with the State of Iowa Gender Balance Law. Airport Commission Airport Zoning Board of Adjustment Airport Zoning Commission Arts and Cultural Affairs Advisory Comm. Board of Library Trustees Building Code Advisory and Appeal Board Cable Television Commission Catfish Creek Watershed Management Authority Civic Center Commission Civil Service Commission Community Development Advisory Comm. Equity and Human Rights Commission Historic Preservation Commission Housing Appeals and Mediation Board Housing Commission Housing Trust Fund Advisory Committee Investment and Cash Management Oversight Advisory Committee Long Range Planning Advisory Commission Parks and Recreation Advisory Commission Resilient Community Advisory Commission Transit Advisory Board Zoning Advisory Commission Zoning Board of Adjustment Community Information 132 Page 497 of 1094 This page intentionally left blank. Community Information 133 Page 498 of 1094 BUDGET OVERVIEWS 134 Page 499 of 1094 This page intentionally left blank. 135 Page 500 of 1094 Budget Overviews 136 Page 501 of 1094 Budget Overviews 137 Page 502 of 1094 Budget Overviews 138 Page 503 of 1094 Budget Overviews 139 Page 504 of 1094 LINKING LONG- AND SHORT-TERM GOALS Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity Small Business Grant Administration Economic Development Catfish Creek Sewershed Interceptor Sewer Improvements- South Fork Engineering Catfish Creek Sewershed Interceptor Sewer Improvements- Middle Fork Engineering South West Arterial Interchange Sewer Extension Engineering South Port Redevelopment Engineering Emergency Preemption Expansion & Upgrades Engineering Catfish Creek Sewershed Interceptor Sewer Improvements- South Fork Engineering Catfish Creek Sewershed Interceptor Sewer Improvements- Middle Fork Engineering South West Arterial Interchange Sewer Extension Engineering South Port Redevelopment Engineering Emergency Preemption Expansion & Upgrades Engineering West End Annexation Phase II Water West 32nd Development Water North Cascade Road (from Edval Lane to Southwest Arterial) 3rd Pressure Zone Water Third Pressure Zone Connection (Tanzanite Drive to Olympic Heights)Water 8th Street 20” Transmission Water Main Connection (Jackson to Central)Water Admiral Sheehy Drive Water Main Loop Water Cla-Val Link2Valves Maintenance Program for Water Distributions Specialty Valves Water Green Alley Water Main Improvements Water Greyhound Park Rd Water Main Loop Water Highway 20/Dodge St Water Main Relocation- Devon Drive to Concord St Water Leak Detection Correlator Replacement Water Maintenance of Public Water Mains During Stone Retaining Wall Repair Water SCADA & Communications Infrastructure Improvements Water South Algona 12” Water Main Replacement Water Deere X738 Water Water Main Relocation for Sanitary Sewer Manhole Water Water Main Replacement Consent Water Water Main Replacement - Streets Water Water Main Upgrades during Street General Repairs Water LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Budget Overviews 140 Page 505 of 1094 Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity Water Storage Maintenance Program Water Vehicle 4911 Tandem Dump Truck Replacement Water LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Vibrant Community: Healthy and Safe Fire Station Expansion/Relocation Fire 2027 Fire Engine Replacement Fire 2027 Ambulance Replacement Fire Outdoor Warning Siren Repair/Replace Fire Portable Radio Replacements Fire Elevator at Fire Headquarters Fire 2030 Fire Engine Replacement Fire 2030 Ambulance Replacement Fire Downtown ADA Assistance Housing Lead and Healthy Homes Grant Housing Fire Hydrant Stock Water Vehicle 4901 Replacement Water Vehicle 4904 Replacement Water Vehicle 4907 Replacement Water Vehicle 4908 Replacement Water Street Camera Installation Engineering Federal Building Renovation Engineering Bus Stop Improvements Transportation Livable Neighborhoods and Housing: A Great Place to Live Greater Downtown Housing Creation Grant Program Economic Development Downtown Rehab Grant Program Economic Development Central Avenue Housing Forgivable Loan Economic Development Central Avenue Alley Lighting Program Economic Development Drain Tile Program Engineering Trygg Storm Sewer Extension Project Engineering Carter Road and Westmore Storm Sewer Extension Engineering Levi & Sullivan Intersection Storm Sewer Extension Engineering General Sanitary Sewer Replacement Engineering Sanitary Sewer Lining Program Engineering Sanitary Sewer CCTV Inspection, Cleaning, & Assessment Engineering Manhole Replacement / Rehabilitation Program (Consent Decree)Engineering Outfall Manhole Reconstruction Engineering LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Budget Overviews 141 Page 506 of 1094 Livable Neighborhoods and Housing: A Great Place to Live Cedar and Terminal Street Lift Station and Force Main Assessment and Improvements Engineering Old Mill Lift Station & Force Main- Phase 1 Engineering Old Mill Lift Station & Force Main- Phase 2 Engineering Track Line Sanitary Sewer Reconstruction Engineering Brunskill Road Collector Sewer Reconstruction Engineering Kerper Boulevard Lift Station Replacement Engineering Central Avenue Corridor Streetscape Master Plan Implementation Improvements 11th-22nd Street Engineering Decorative Concrete Maintenance Program Engineering Stone Retaining Walls Engineering Villa Street Retaining Wall Reconstruction Engineering Parking Lot Materials at Union at Marina Project Engineering Street Light Replacement and New Installation Engineering Grandview Street Light Replacement Engineering Iowa St Streetlight Replacement Project Engineering Downtown Bike Lockers Engineering Bunk Room Remodel Fire Fire Station 6 Roof Replacement Fire Historic Preservation Revolving Loan Fund Housing Assistance for Homeownership Housing Washington Neighborhood Home Purchase Program Housing Homeowner Rehabilitation Program Housing Healthy Homes Production Grant Housing Municipal Parking Lot Maintenance Parking Port of Dubuque Ramp-Major Maintenance Parking Parking Ramp Major Maintenance Repairs Parking Industrial Center Native Plantings Parks Washington Community Gateway Parks Historic Preservation Technical Assistance Program Planning Street Sign and Post Replacement Public Works Combination Jet/Vac Sewer Maintenance Truck Replacement Public Works Port of Dubuque Flood Wall Dubuque Welcome Sign Recreation HVAC Replacement W&RCC Lift Station SCADA Upgrades W&RRC Bar Screen Replacement W&RRC RAS and Scum Pump Replacement W&RRC Plant Nutrient Reduction Improvements and BOD/ Flow Capacity Improvements W&RRC Industrial Controls Upgrade W&RRC Uninterruptible Power Supply (UPS) Replacement W&RRC LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Budget Overviews 142 Page 507 of 1094 Livable Neighborhoods and Housing: A Great Place to Live UV System Cable & Harness Replacement W&RRC Biogas Chiller Replacement W&RRC WRRC Odor Monitoring System W&RRC Water Treatment Plant and Pump Station Pipe Rehabilitation Water LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Financially Responsible, High Performance City Organization: Sustainable, Equitable and Effective Service Delivery Aerial Orthophotography and LiDAR Communications Office Enterprise Asset Management System Software-Sanitary Engineering Inflow and Infiltration Inspection Vehicle Replacement Engineering Enterprise Asset Management System Software- Stormwater Engineering Stormwater Management Program Engineering Enterprise Asset Management System Software- Roadways Engineering Enterprise Asset Management System Software- Fiber Engineering 2028 Fire Engine Replacement Fire City-Wide Computer and Printer Replacements- Business Information Technology City-Wide Computer and Printer Replacements - General Gov Information Technology Network Switch Replacement Information Technology Smart Parking System ParkingMunicipal Services Center Roof Mounted HVAC Replacement Unit Public Works Wheel Loader Purchase Public Works Vehicle Fuel Island Rehabilitation Public Works Paver Replacement Public Works Aerial Bucket Truck Replacement Public Works Municipal Services Center Roof Replacement Public Works Landfill Half Ton Truck Replacement Public Works Landfill Minivan Replacement Public Works Landfill UTV Replacement Public Works Landfill Forklift Replacement Public Works Landfill Website Redesign Project Public Works Landfill Alternative Energy Project Public Works Landfill Plan Updates Project Public Works Landfill Mechanical Service Truck Replacement Public Works Landfill Dozer Replacement Project Public Works Landfill 3453 Dozer Rebuild Public Works Landfill 3456 Dozer Rebuild Project Public Works Landfill Compactor Rebuild 3471 Public Works Landfill Portable Litter Fencing Public Works Landfill Rolloff Container-Glass Public Works LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Budget Overviews 143 Page 508 of 1094 Financially Responsible, High Performance City Organization: Sustainable, Equitable and Effective Service Delivery Landfill Tarpomatic Replacement Public Works Landfill Gas System Air Compressor Public Works Landfill Title V (Emission) Permit Renewal Public Works Landfill Wheel Loader Replacement Public Works Solid Waste Collection Vehicles-3401 & 3405 Public Works Solid Waste Collection Vehicles-3404 & 3410 Public Works Solid Waste Collection Vehicles-3403 & 3407 Public Works Solid Waste Collection Vehicles-3412 & 3413 Public Works Solid Waste Collection Vehicles-3411 & 54003 Public Works Landfill Cell 9 Abutment Phase 2 Public Works Landfill 3C Project Public Works Landfill Shop Renovation Public Works Landfill Batwing Replacement Project Public Works Landfill Permit Renewal Project Public Works 58,000 Gross Vehicle Weight (GVW) Dump Truck Replacement Public Works 44,000 GVW Dump Truck Replacement Public Works Electronic Hydraulic Shop Press W&RRC Water Meter Replacement Program Water Water Treatment Plant Condition Assessment and Master Plan Water Enterprise Asset Management System WaterFire Hydrant Assembly Relocation/Replacement for the Sidewalk Program Water Municipal Services Center Roof Mounted HVAC Replacement Water Municipal Services Center Roof Replacement Water Generators-Park Hill & Mt. Carmel Water LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Partnership for a Better Dubuque: Building Our Community that is Viable, Livable and Equitable Water Treatment Plant Third Floor Conference Room Water Budget Overviews 144 Page 509 of 1094 Sustainable Environment: Preserving and Enhancing Natural Resources Ash Tree Removal and Replacement Parks Public Lead Line Water Main Replacement Water Source Water PFAS Reduction Project - Granular Activated Carbon Filter Rehabilitation Water Source Water PFAS Reduction Project Water Water Treatment Boiler Replacements Water Water Treatment Plant Roof Replacement Water Wells, Well Field & Well Transmission Piping Repair and Rehabilitation Program Water Vehicle Replacements W&RRC Floodwall Post-Flood Repair Program Public Works Electric Vehicle Charging Infrastructure Located at the Municipal Services Center Public Works Landfill Gas Field Well Leachate Pump Public Works Landfill Sewer Line Extension Public Works Landfill Waste Minimization Grant Project Public Works Landfill EMS Grant Matching Funds Public Works Landfill Organics Management Project Public Works Storm Sewer General Replacements Engineering Catch Basin Reconstruction Engineering Stormwater Infiltration & Inflow Elimination Program Engineering Stormwater Sewer Improvements/Extensions Engineering Stormwater Sewer Outlet Repairs Engineering Bee Branch Creek Gate & Pump Replacement Engineering Flood Control Maintenance Facility Engineering North End Storm Sewer Improvements Engineering Windsor Storm Extension (Buena Vista to Strauss)Engineering NW Arterial Detention Basin Improvements Engineering Embassy West Storm Sewer Improvements Engineering Loras & Locust Intersection Reconstruction (Storm Sewer)Engineering Pennsylvania Culvert Replacement Engineering Tanglewood Court Outfall Stabilization Engineering Force Main Stabilization Engineering Green Alleys - Non Bee Branch Engineering Public Electric Vehicle Chargers Engineering Harbor Area Maintenance-Dredging Engineering Community Green House Gas Inventory and Climate Action Planning City Manager’s Office LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Budget Overviews 145 Page 510 of 1094 LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Diverse Arts, Culture, Parks and Recreation: Experiences and Activities Five Flags Building Improvements Civic Center Marquee Replacement Civic Center Standby Emergency Generator Replacement Civic Center Recirculating Pump Replacement Civic Center Boiler Replacement Civic Center Replace Carpet Conference Center Roof Restoration Conference Center Dishwasher & Water Softener Replacement Conference Center Public Restroom Remodels Conference Center Iowa Amphitheater on Schmitt Island Engineering ADA Compliance & Facilities Management Consulting Engineering Reimagine Comiskey Parks Parks and Recreation Comprehensive Master Plan Parks Eagle Point Park Replace Water Lines Parks Rustic Point Park Development Parks South Point Park Development Parks Second Dog Park Planning Parks Bunker Hill Golf Course Construct Cart Paths Recreation Bunker Hill Golf Course Tee Improvements RecreationBunker Hill Golf Course Material Storage Renovation Recreation Bunker Hill Golf Course #7 Fairway Fencing Recreation Bunker Hill Golf Course Tree Removal & Replacement Recreation Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility Reconstruct Taxiway A Airport Update Airport Pavement Management System Airport Asphalt Pavement Repair Airport Reconstruct General Aviation Apron Airport Equipment Storage Building Airport Taxiway D Extension Airport Terminal Building Modification Airport Airfield Runway/Taxiway Marking Improvements Airport Asphalt Milling Program Public Works Curb Ramp Program Public Works Curb Replacement Program Public Works LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Budget Overviews 146 Page 511 of 1094 Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility Concrete Street Section Repair Program Public Works Sanitary Sewer Root Foaming Public Works Pavement Marking Project Engineering Street Construction General Repairs Engineering East - West Corridor Capacity Improvements Engineering 7th Street Extension to Pine Street Engineering Pavement Preservation Joint Sealing Engineering Sidewalk Inspection Program - Assessable Engineering Traffic and Pedestrian Crossing Warning Devices Engineering 14th Street Overpass Engineering Wildwood Drive Bridge Replacement Engineering US 20-Northwest Arterial Intersection Operational and Capacity Improvements Engineering Sidewalk Program - City-Owned Property Engineering Sidewalk Program Related Curb and Catch Basin Replacements Engineering Bridge Repairs/Maintenance Engineering Brick Paver Maintenance Engineering Safe Routes to School Engineering Complete Street Elements-Trails, Sidewalks & Signs Engineering Wayfinding Signage Engineering Speed Shields Engineering Signalization Program Engineering Traffic Signal Mastarm Retrofit Engineering Traffic Signal Interconnect Conduit Replacement Engineering Traffic Signal Controller Replacement Engineering Street Lighting and Traffic Signal Knockdown/ Insurance Engineering LED Re-Lamp Schedule Engineering Traffic Signal Battery Backup Engineering Surge and Grounding Improvement at Signals Engineering Streets Traffic Control Project Phase 1 Engineering Streets Traffic Control Project Phase 2 Engineering ITS Traffic Control Equipment Engineering Traffic Signal Vehicle Detection Conversion Engineering Traffic Signal Fiber Optic Network Program Engineering Broadband Acceleration and Universal Access Engineering INET Fiber Replacement Build Out Engineering Fiber Optic Conduit-Miscellaneous Engineering Fiber Infrastructure Management System Engineering Transit Vehicle Replacement Transportation LONG-TERM GOAL SHORT-TERM GOAL IMPLEMENTATION DEPARTMENT Budget Overviews 147 Page 512 of 1094 CITY OF DUBUQUE FISCAL YEAR 2026 RECOMMENDED BUDGET FACT SHEET Total Budget $276,185,089 4.79% more than FY 2025 Operating Budget $184,381,340 5.48% more than FY 2025 Capital Budget $91,803,749 3.44% more than FY 2025 City Tax Asking $29,855,822 5.78% more than FY 2025 City Tax Rate $10.06372 per $1,000 1.38% more than FY 2025 Taxable Valuation 2,962,580,907 4.39% more than FY 2025 TIF Increment Valuation 587,840,561 -8.51% less than FY 2025 Tax Rate Change 1.38% Impact on Property Owners (City Taxes Only) Residential = 3.90%Commercial = 1.78% Industrial = 1.71% $33.38 $74.27 $85.68 Adopted Fee Adjustments Sanitary Sewer 9.00% rate increase effective July 1, 2025 Water 9.00% rate increase effective July 1, 2025 Stormwater 5.00% rate increase effective July 1, 2025 Solid Waste 5.00% rate increase effective July 1, 2025 Recreation Annual golf fee increases/decreases to maintain 100% self-support guideline: $1 increase to weekend golf fees and daily cart rentals. Planning Services Increase multiple planning and zoning application fees by 2% to accurately reflect the cost of providing service. Positions Full-Time Equivalent Changes Full-Time Equivalent All Funds -0.40 775.82* * Included Full Time employees (661.00), Part Time employees (56.57), and Seasonal (58.25) Budget Overviews 148 Page 513 of 1094 SUMMARY OF TOTAL REVENUE AND EXPENDITURES - ALL BUDGETED FUNDS Revenues/Sources FY 2024 Actual FY 2025 Adopted FY 2026 Recomm'd Budget Taxes $ 61,499,732 $ 70,574,136 $ 73,325,403 Licenses and Permits 4,010,922 4,371,333 4,477,648 Use of Money and Property 19,822,802 19,061,431 22,190,268 Intergovernmental 37,158,735 47,561,664 58,245,768 Charges of Services 43,801,382 49,182,171 52,698,361 Special Assessments 87,053 3,000 117,657 Miscellaneous 14,115,488 14,120,877 15,395,263 Subtotal Revenues 180,496,114 204,874,612 226,450,368 Other Financing Sources: Proceeds from Bonds 7,358,016 38,061,244 29,189,076 Transfers In 37,051,283 40,357,689 45,969,433 Beginning Fund Balance 97,781,647 86,565,970 65,948,308 Total Available Resources $ 322,687,060 $ 369,859,515 $ 367,557,185 Expenditures/Uses Public Safety $ 36,047,404 $ 40,125,486 $ 40,879,248 Public Works 15,868,415 16,711,428 17,726,454 Health and Social Services 1,041,566 1,351,733 1,207,942 Culture and Recreation 16,295,433 18,070,634 17,924,093 Community and Economic Development 18,438,126 17,356,707 22,545,116 General Government 15,426,218 15,752,510 16,444,880 Business Type 31,807,126 38,652,015 38,317,541 Debt Service 24,696,050 26,779,181 29,336,066 Capital Improvement Projects 39,449,469 88,753,825 91,803,749 Subtotal Expenditures 199,069,807 263,553,519 276,185,089 Other Financing Uses: Transfers Out 37,335,362 40,357,689 45,969,433 Ending Fund Balance 86,281,891 65,948,307 45,402,663 Total Uses and Fund Balance $ 322,687,060 $ 369,859,515 $ 367,557,185 Budget Overviews 149 Page 514 of 1094 REVENUE CATEGORY EXPLANATIONS PROPERTY TAXES All property taxes collected for the City are levied on the assessed valuation of real and personal property as determined by the City Assessor. For Fiscal Year 2026, the total tax collection of $29,855,822 is a 5.78% increase as compared to FY 2025. The total tax collection includes $10,388 for agricultural land. The overall levy is made up of five parts as described below. GENERAL LEVY HISTORY GENERAL LEVY HISTORY $3.821 $3.461 $3.312 $3.005 $4.070 TAX RATE/$1,000 VALUATION FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $0.00 $2.00 $4.00 $6.00 The General Levy for the general fund is limited by the State of Iowa to 2% or 3% growth each year, depending on the trigger hit, except for specific levies authorized outside the limit. The City of Dubuque general levy for FY 2026 is just $4.06959, which is down from $3.00466 the year before. The General Levy is certified with the State of Iowa at the maximum levy allowed by moving eligible Employee Trust & Agency expenses (allowable in the Trust & Agency Levy) into the General Levy. The State of Iowa requires this shift to maximize the General Levy first. Also, 50% of the one cent local option sales tax and 100% of the gaming revenues (taxes and lease) is applied for property tax relief which has created a savings in the total City tax rate of $6.24775/$1,000 valuation. Outside of the General Fund levy, a Transit Levy can be used without the vote of the electors to fund the operations of a municipal transit system. This levy may not exceed 95 cents/$1,000 valuation. The levy is collected in the General Fund, and then transferred to the Transit Fund. The FY 2026 levy of 0.650560 cents will generate $1,927,336 which is a 12.81% decrease from FY 2025. TRANSIT LEVY HISTORY $0.605 $0.583 $0.577 $0.691 $0.651 TAX RATE/$1,000 VALUATION FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 Budget Overviews 150 Page 515 of 1094 TORT LIABILITY LEVY HISTORY $0.140 $0.141 $0.214 $0.508 $0.523 TAX RATE/$1,000 VALUATION FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $0.000 $0.100 $0.200 $0.300 $0.400 $0.500 $0.600 $0.700 The Trust and Agency Levy is available for payroll benefit costs (as defined by the City Finance Committee) including Retirement (IPERS), Municipal Fire and Police Retirement (MFPRSI), Police Pensions, Social Security/ Medicare, Police and Fire medical costs, Health Insurance, Worker’s Compensation, Life Insurance, and Unemployment. The total payroll benefit costs allowable in this levy are $15,969,639. The trust and agency levy has increased to $5.39045 in FY 2026 . Outside of the General Fund levy, a Tort Liability Levy can be used without the vote of the electors to fund the cost of general liability insurance to the total amount necessary. The levy is collected in the Tort Liability fund and then transferred into the General Fund to pay general liability insurance expense. The FY 2026 levy of 0.52317 cents generates $1,549,924. The City is a member of the Iowa Community Assurance Pool (ICAP) which is a local government risk- sharing pool in the State of Iowa. The tort liability levy request changes based on risk adjustments received from ICAP. TRUST & AGENCY LEVY HISTORY $5.203 $5.469 $5.651 $5.594 $5.390 TAX RATE/$1,000 VALUATION FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 DEBT SERVICE LEVY HISTORY $0.092 $0.022 $0.097 $0.083 $0.081 TAX RATE/$1,000 VALUATION FY 2 0 2 2 FY 2 0 2 3 FY 2 0 2 4 FY 2 0 2 5 FY 2 0 2 6 $0 $0.05 $0.1 $0.15 $0.2 $0.25 The final portion of the levy is for Debt Service. This levy is restricted to General Obligation (GO) bond debt and judgments. The City of Dubuque has a GO bond issuance for the replacement of fire trucks and an ambulance issued in FY 2011 for $1,355,500 and a franchise fee judgment bond issued in FY 2016 for $2,800,000 with debt service abated by the debt service levy of $285,870 in FY 2026. Budget Overviews 151 Page 516 of 1094 OTHER TAXES Local Option Sales Tax (LOST) Beginning April 1, 1988, an additional 1% local option sales tax is applied to all goods and services delivered within the City of Dubuque, to which the State of Iowa sales tax already applies. This was approved by the voters in February of 1988. Of the total received, 50% of the funds are marked for property tax relief; 20% for City facilities maintenance (upkeep of City-owned property, transit equipment, riverfront and wetland development, and economic development); and 30% for special assessment relief (street special assessments and the maintenance and repair of streets). Annually the State sends the City an estimate of the amount of local option sales tax it will receive monthly for the year. The amount is 95% of the estimated collection and then in November, the City will receive an adjustment to actual for the prior year. This estimate along with actual receipt and sales growth trends, are used to budget. The budget for FY 2026 decreased 0.17% compared to FY 2025, which reflects stabilized sales growth. Impact of Local Option Sales Tax on City's Share of Property Tax Paid by the Average Homeowner $769 $792 $815 $889 $923 $929 $1,010 $1,002 $1,139 City Share of Property tax with LOST City Share of Property tax without LOST FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $600 $675 $750 $825 $900 $975 $1,050 $1,125 $1,200 In FY 2026 approximately $6,452,968 will be generated for property tax relief. This translates into a reduction of the City share of property tax paid by the Average Homeowner of $250.12. This chart illustrates the amount the total levy would have to be if the Local Option Sales Tax had not been approved. Hotel/Motel Tax Beginning in November of 1991, a referendum was passed to increase hotel/motel tax from 5% to 7% (limit). This tax is levied upon the occupancy of any room furnished by a hotel/motel in the City. By Resolution, 50% of the hotel/motel tax is to be used for promotion and encouragement of tourism and convention business. City Council’s policy is to provide 50% of the past 4 quarters actual receipts to the Convention & Visitors Bureau (CVB) in the next fiscal year’s budget. The remaining 50% goes into the General Fund for property tax relief. Additional commitments include, 25% of actual hotel/motel tax paid by the Grand Harbor Hotel and Water Park be returned to them. Hotel/motel tax has increased gradually over the years until FY 2004, when a 35% increase was realized. This was due to the addition of several new hotel/motels in Dubuque. FY 2026 is budgeted with an increase of 15.82% over FY 2025, which reflects the actual trend. Budget Overviews 152 Page 517 of 1094 Other Taxes Other taxes include tax on agricultural land (state levy limit is $3.00375), military service, county monies & credits, gaming taxes (Greyhound Park and Casino para-mutual and slot machine tax and Diamond Jo riverboat tax on bets), mobile home tax, and tax increment property tax revenues. LICENSES AND PERMITS Fees from licenses include business, beer, liquor, cigarette, dog, cat, bicycle, housing, and other miscellaneous. Fees from permits include building, electrical, mechanical, plumbing, refuse hauling, excavation, subdivision inspection, swimming pool inspection, animal impoundments, and other miscellaneous. Also included are cable TV franchise fees (5%) and utility franchise fees (5% gas and 5% electric) – with a decrease of (12.07)% in FY 2026. The Fiscal Year 2026 projection for Cable Franchise Fees is $410,873. The Utility Franchise Fees from Electric and Natural Gas FY 2026 projection is $6,106,745, all for property tax relief. USE OF MONEY AND PROPERTY This category includes interest and investment earnings collected, rent received from City owned property, and lease revenue. The gaming related leases generate the most revenue. In 1984, the resident’s of Dubuque approved a referendum allowing dog racing. In 1987, this expanded to include riverboat gaming and in 1994 slot machines at the dog track. The Greyhound Park and Casino expanded with a bigger and better facility and in June 2005, slot machines were added to go from 600 to 1,000 and in March 2006, table games were added. Effective April 1, 2004 the lease with the Dubuque Racing Association (DRA) was revised to collect 1% of coin-in and unadjusted drop from .5% previously, and its end date changed from 2009 to 2018. The City receives a distribution of profit from the DRA annually that was previously split 40% to the City, 30% to local charities and 30 % retained by the DRA. A lease amendment in FY 2010 changed this split to 50% City / 50% Charities / DRA. In addition, this lease amendment changed the unadjusted drop from .5% for table games to 4.8 percent of adjusted gross receipts. On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1% of coin-in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, the distribution of net profit is now split three ways between the City, charities, and the Schmitt Island Master Plan Implementation from a two-way split between the City and charities. The amended lease has an expiration date of December 31, 2055. The change in market share and changes in the lease agreement impacts the City’s lease payment from the DRA. The new lease effective 1/1/22 requires the DRA to pay the City 1.5 percent of coin in from slot machines (previously 1 percent),4.8 percent of gross revenue from table games, and 0.5 percent of sports wagering. Diamond Jo admissions are also collected through their lease. City Council policy is to use 100% of the DRA distribution of profit to support the Capital Improvement budget, however in Fiscal Year 2025 and 2024 100% of DRA distribution of profit is was used for the operating budget. City Council policy for the total received from the DRA operating lease and taxes, and the Diamond Jo admissions and taxes, is to split it 100% for property tax relief in the General Fund and 0% to support the Capital Improvement program. Budget Overviews 153 Page 518 of 1094 Impact of Gaming Revenues on City's Share of Property Tax Paid by the Average Homeowner $769 $792 $884 $815 $889$923 $929 $1,032 $1,032 $1,162 City Share of Property tax with Gaming City Share of Property tax without Gaming FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 $600 $700 $800 $900 $1,000 $1,100 $1,200 In 2026, 100% of the total or approximately $6,452,968 is projected to be generated and reduce the amount paid by the average homeowner by $273. This chart illustrates the total the average homeowner would have to pay without the contribution of gaming revenue. FY 2026 and beyond gaming projections include the impact of the renovated Q Casino and additional casinos opening in Illinois, Wisconsin, and Iowa. INTERGOVERNMENTAL REVENUE Intergovernmental revenues include Federal grants and reimbursements, State grants and reimbursements, State shared revenues, and County or other local grants and reimbursements. Many of these revenues are construction project related and thus significantly increase and decrease with the timing of projects. Federal and State grants received by the City are listed on the ‘Summary of How Budgeted Expenditures are Funded by Source of Income” under the Financial Summaries tab. In FY 03/04, the State of Iowa discontinued State shared recurring revenues (liquor tax, personal property tax replacement, municipal assistance, and state funded monies and credits) due to a budget crisis at the State level. This caused a shortfall of $1,051,625 in the City of Dubuque’s General Fund. Then in FY 04/05 the bank franchise tax was eliminated by the State causing a shortfall of $145,000. This was addressed by making cuts, shifting funding and increasing revenues by adding a 2% gas and electric franchise fee. The Iowa Department of Transportation (IDOT) provides annual projections on the amount of Road Use Tax Funds the City of Dubuque will receive over the next five years based on a per capita amount. The State Road Use Tax Fund consist of revenues from fuel tax, vehicle registration fees, use tax, driver’s license fees and other miscellaneous sources and is distributed to cities on a per capita basis. It should be noted that in FY 2010, the Iowa Department of Revenue increased Road Use Tax Funds (RUT) as a result of higher vehicle registration fees passed into law in 2008. The gas tax was increased ten cents beginning in February 2015. The city is estimated to receive $44,519,265 for FY 2026-2030. Budget Overviews 154 Page 519 of 1094 CHARGES FOR SERVICES Utility Charges This includes revenue from charges for services for Water, Sewer, Stormwater, Solid Waste, and Landfill. Rate increases have been incorporated in all utilities (as listed on the “Fact Sheet” under the Budget Overviews tab). Rate increases were necessary due to a combination of operating costs rising (fuel, gas/ electric, supplies), additional capital projects, to support additional debt service, and to meet revenue bond covenants. Other Charges for Services This includes revenue from all charges for current services exclusive of utilities, such as: General Government - Copy charges, sale of maps and publications, zoning adjustment fees, sub plat review fees, plan check fees, and temporary use fees. Highways/Streets/Sanitation – Street, sidewalk, and curb repairs, engineering and inspection fees, and weed cutting charges. Public Safety – Special Police services and ambulance fees. Municipal Enterprises – Library services, transit services, airport charges and fuel sales, and parking meters and lot collections. Recreation – Recreation programs, golf course fees, aquatics, and park fees. SPECIAL ASSESSMENTS Special Assessments are an additional tax levied on private property for public improvements that enhance the value of the property. Principal and interest payments received on special assessments are included in this revenue category. MISCELLANEOUS REVENUE Internal Charges These are the charges for labor, equipment, materials, printing, and messenger service which City departments pay to internal services departments or to other City departments. Proceeds from Bonds This includes proceeds from sale of bonds for the principal, premium, and accrued interest. Miscellaneous Revenue This includes revenues of a non-recurring nature which are not assigned above. Transfers This is for the transfer of money between City funds. Budget Overviews 155 Page 520 of 1094 REVENUE HIGHLIGHTS REVENUE PROJECTIONS The revenue projection process starts with five year projections calculated on all tax levied funds (General, Transit, Debt, Tort, and Trust & Agency). Prior year’s actual and current year-to-date amounts are used to project both the current year and next four year’s revenues. Information received from the State, County, and Iowa League of Municipalities is utilized to project recent trends and anticipated amounts. The City Manager and the Chief Financial Officer review estimates, with input from the Human Resources Director, to make informed judgments on all revenues city wide. The Budget and Fiscal Policy Guidelines are recommended to City Council for adoption. The Departments then submit their estimates and the Chief Financial Officer review all detail, discusses with Departments, makes appropriate adjustments and prepares the Budget Financial Summary for their Department. Budget Hearings begin with the City Manager, Assistant City Manager, Chief Financial Officer, and each Department. At the Hearings, reviews are completed of Department revenues, expenses, and ending fund balances or property tax support change to determine if fees and charges need to be adjusted. Many funds have a restricted or a minimum fund balance required for cash flow or other purposes. Fund balances above the restricted amounts are used to fund nonrecurring expenses. WHERE THE MONEY COMES FROM FY 2026 RECOMMENDED TOTAL BUDGET Other Utilities Federal Funds State Funds Local Taxes G.O. Revenue Bonds Operating Receipts —% 10.0% 20.0% 30.0% Total Recommended Budget $276,185,089 *Excludes Transfers Budget Overviews 156 Page 521 of 1094 The major resource assumptions used in preparing the Fiscal Year 2026 recommended budget include the following: a)Cash Balance. Unencumbered funds or cash balances of $200,000 will be available in FY 2026 and each succeeding year to support the operating budget. b)Interest Revenue. Interest revenue increased from $1,718,055 in FY 2025 to $2,300,097 in FY 2026. The FY 2026 budget is based on 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. c)Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the General Fund for property tax relief in FY 2026. Sales tax receipts are projected to decrease (0.17)% ($21,580) under FY 2025 budget and 2.00% over FY 2025 actual of $12,652,878 based on FY 2025 revised revenue estimate which includes actuals through December 2024, and then increase at an annual rate of 2.00% percent per year beginning in FY 2027. The following chart shows the past four years of actual sales tax funds and projected FY 2026 for the General Fund: Sales Tax Funds FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 PY Q4 $419,551 $475,037 $451,920 $574,416 $585,904 Quarter 1 $1,361,526 $1,177,196 $1,545,777 $1,592,834 $1,624,691 Quarter 2 $1,425,968 $1,522,885 $1,596,421 $1,605,397 $1,637,505 Quarter 3 $1,211,388 $1,443,097 $1,524,508 $1,554,999 $1,586,099 Quarter 4 $950,069 $1,110,593 $979,209 $998,793 $1,018,769 Reconciliation $945,466 $371,388 $— $— $— Total $ 6,313,968 $ 6,100,196 $ 6,097,835 $ 6,326,439 $ 6,452,968 % Change +0.87 % -3.50 % -0.04 % +3.75 % +2.00 % d)Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 15.82% ($534,077) over FY 2025 budget and 3.00% over FY 2025 re-estimated receipts of $3,796,563, and then increase at an annual rate of 3.00% per year. e)FTA Revenue. Federal Transportation Administration (FTA) transit operating assistance increased from $558,000 in FY 2025 to $598,167 in FY 2026. The FY 2026 budget is based on the revised FY 2025 budget received from the FTA. Federal operating assistance is based on a comparison of larger cities. Previously the allocation was based on population and population density. Ambulance Revenue. Ambulance Ground Emergency Medical Transport Payments increased from $2,401,917 in FY 2025 to $2,413,018 in FY 2026. GEMT is a federally-funded supplement to state Medicaid payments to EMS providers transporting Medicaid patients which began in FY 2021. FY 2026 is based on calculated projections using historical averages. This revenue is projected using the first quarter of performance in FY 2025 and the previous 11 quarters of performance. Based on that formula, the 3-year quarterly average growth of Medicaid transports is 0.8%. The projected number of transports for FY 2025 is 1,084 and for FY 2026 is 1,092. The FY 2024 actual was 1,075. Based on the unaudited FY 2024 cost report, the FY 2026 revenue per transport is estimated to be $2,209.18. This line item is offset by GEMT Pay to Other Agency expense for local match of $804,331 resulting in net revenue of $1,608,687. Budget Overviews 157 Page 522 of 1094 Ambulance Fees decreased from $2,074,232 in FY 2025 ($361 per call) to $1,756,870 in FY 2026 ($357 per call) based on calculated projections using historical averages. The FY 2024 actual was $1,763,339. In FY 2026, it is currently estimated that there will be 4,924 calls with $357 per call average. The FY 2026 ambulance revenue projection is based on the average transport volume growth of the past 12 quarters (which is 0.2% growth). This includes the first quarter of performance in FY 2025 and the prior 11 quarters. f)Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth per year over budgeted FY 2025. g)Building Fee Revenue. Building fees (Building Permits, Electrical Permits, Mechanical Permits and Plumbing Permits) are anticipated to increase $167,827 from $932,030 in FY 2025 to $1,099,857 in FY 2026. h)DRA Revenue. 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. The following is a ten-year history of DRA lease payments to the City of Dubuque: Fiscal Year DRA Lease $ Change % FY 2026 Projected $7,213,362 $ 601,496 9 % FY 2025 Revised $6,611,866 $ (793,713) -11 % FY 2025 Budget $7,405,579 $ 1,131,553 18 % FY 2024 Actual $6,274,026 $ (917,449) -13 % FY 2023 Actual $7,191,475 $ 583,944 9 % FY 2022 Actual $6,607,531 $ 2,645,535 67 % FY 2021 Actual $3,961,996 $ (1,187,192) -23 % FY 2020 Actual $5,149,188 $ 293,177 6 % FY 2019 Actual $4,856,011 $ 18,879 0 % FY 2018 Actual $4,837,132 $ (195,083) -4 % FY 2017 Actual $5,032,215 $ (155,297) -3 % FY 2016 Actual $5,187,512 $ (158,104) -3 % FY 2015 Actual $5,345,616 $ (1,474,667) -22 % The Diamond Jo payment related to the revised parking agreement increased from $624,377 in FY 2025 to $687,003 in 2026 based on estimated Consumer Price Index adjustment. i)DRA Gaming. The split of gaming revenues from taxes and the DRA lease (not distributions) in FY 2026 remains at a split of 100% operating and 0% capital. When practical in future years, additional revenues will be moved to the capital budget from the operating budget. Budget Overviews 158 Page 523 of 1094 The following shows the annual split of gaming taxes and rents between operating and capital budgets from FY2021– FY2026: Split of Gaming Tax + Revenue Between Operating & Capital Budgets 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% Operating Capital —%10%20%30%40%50%60%70%80%90%100%110% FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 j)Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2026) and the Diamond Jo parking privileges ($687,003 in FY 2026) have not been included in the split with gaming revenues. This revenue is allocated to the operating budget. k)Residential Rollback. The residential rollback factor will increase from 46.3428% in 2025 to 47.4316% or a 2.35% increase in FY 2026. The rollback has been estimated to remain the same from Fiscal Years 2027 through 2030. The percent of growth from revaluation is to be the same for agricultural and residential property; therefore, if one of these classes has less than 3% growth for a year, the other class is limited to the same percent of growth. A balance is maintained between the two classes by ensuring that they increase from revaluation at the same rate. In FY 2026, agricultural property had more growth than residential property which caused the rollback factor to increase. The increase in the residential rollback factor increases the value that each residence is taxed on. This increased taxable value for the average homeowner ($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. In an effort to keep property taxes low to the average homeowner, the City calculates the property tax impact to the average residential property based on the residential rollback factor and property tax rate. In a year that the residential rollback factor increases, the City recommends a lower property tax rate than what would be recommended had the rollback factor remained the same. Budget Overviews 159 Page 524 of 1094 The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to 47.4316 percent in Fiscal Year 2026. The rollback percent had steadily decreased since FY 1987, which has resulted in less taxable value and an increase in the City’s tax rate. However, that trend began reversing in FY 2009 when the rollback reached a low of 44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2025, the City’s tax rate would have been $5.95 per $1,000 of assessed value instead of $9.93 in FY 2025. l)State Equalization Order/Property Tax Reform. There was not an equalization order for commercial, industrial or multi-residential property in Fiscal Year 2026. The Iowa Department of Revenue is responsible for “equalizing” assessments every two years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide basis. Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed value; however due to legislative changes in FY 2013, a 95% rollback factor was applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond. The State of Iowa backfilled the loss in property tax revenue from the rollback 100% in FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018 and beyond. The FY 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). Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill provides that beginning with the FY 2023 payment, the General Fund standing appropriation for commercial and industrial property tax replacement for cities and counties will be phased out in four or seven years, depending on how the tax base of the city or county grew relative to the rest of the state since FY 2014. Cities and counties where the tax base grew at a faster rate than the statewide average from FY 2014 through FY 2021 will have the backfill phased out over a four- year period from FY 2023 to FY 2026, while those that grew at a rate less than the statewide average will have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The City of Dubuque’s tax base grew at a rate less than the statewide average and will have a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in FY 2023, the backfill will be eliminated over a eight year period. The projected reduction of State backfill revenue to only the general fund is as follows: Fiscal Year State Backfill 2026 $ (97,981) 2027 $ (97,981) 2028 $ (97,981) 2029 $ (97,981) 2030 $ (97,981) Total $ (489,905) Budget Overviews 160 Page 525 of 1094 Business Property Tax Credit Law Changes and Implementation of Two-Tier Assessment Limitations From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property taxes owed and the credit was funded by the State of Iowa. The average commercial and industrial properties ($432,475 Commercial / $599,500 Industrial) received a Business Property Tax Credit from the State of Iowa for the City share of their property taxes of $148 in FY 2015, $693 in FY 2016, $982 in FY 2017, $959 in FY 2018, $843 in FY 2019, $861 in FY 2020, $779 in FY 2021, $780 in FY 2022, and $722 in FY 2023. House File 2552, Division 11 passed in the 2022 legislative session and signed by the Governor on May 2, 2022 repeals the Business Property Tax Credit (BPTC). In lieu of the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past. The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remained the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. If the total for all claims is more than the appropriated amounts, the claims will be prorated and the Iowa Department of Revenue will notify the county auditors of prorated percentage by September 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. The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2026 is estimated to be $387,318. m)Multi-Residential Property Class/Eliminated State Shared Revenue. Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax classification for rental properties called multi-residential, which requires a rollback, or assessment limitations order, on multi- residential property which will eventually equal the residential rollback. Multi-residential property includes apartments with 3 or more units. Rental properties of 2 units were already classified as residential property. Budget Overviews 161 Page 526 of 1094 The State of Iowa did not backfill property tax loss from the rollback on multi-residential property. The rollback will occur as follows: Fiscal Year Rollback %Annual Loss of Tax Revenue FY 2017 86.25%$ 331,239.03 FY 2018 82.50%$ 472,126.87 FY 2019 78.75%$ 576,503.10 FY 2020 75.00%$ 691,639.58 FY 2021 71.25%$ 952,887.71 FY 2022 67.50%$ 752,366.11 FY 2023 63.75%$ 662,820.79 FY 2024 54.65%$ 1,186,077.35 Total $ 5,625,660.54 This annual loss in tax revenue of $1,186,077 from multi-residential property was not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City lost $5,625,661 in total, meaning landlords paid that much less in property taxes. The state did not require landlords to charge lower rents or to make additional investment in their property. In Fiscal Year 2024, the multi-residential property class was eliminated and is reported with the residential property class. State Shared Revenue Eliminations In addition, the State of Iowa eliminated the: A.Machinery and Equipment Tax Replacement in FY 2003 (-$200,000) B.Personal Property Tax Replacement in FY 2004 (-$350,000) C.Municipal Assistance in FY 2004 (-$300,000) D.Liquor Sales Revenue in FY 2004 (-$250,000) E.Bank Franchise Tax in FY 2005 (-$145,000) F.Alcohol License Revenue in FY 2023 (-$85,000) The combination of the decreased residential rollback, State funding cuts and increased expenses has forced the City’s tax rate to increase since 1987 when the residents passed a referendum to establish a one percent local option sales tax with 50% of the revenue going to property tax relief. n)Taxable Value. FY 2026 will reflect the following impacts of taxable values of various property types: Property Type Percent Change in Taxable Value Residential (Includes Multi-Residential) +2.77 % Commercial +1.84 % Industrial +2.41 % Overall +4.39 % *Overall taxable value increased 4.39% percent after deducting Tax Increment Financing values Assessed valuations were increased 2 percent per year beyond FY 2026. Budget Overviews 162 Page 527 of 1094 o)Riverfront Property Lease Revenue. Riverfront property lease revenue is projected to increase by $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. p)Franchise Fees. 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. The franchise fee revenues are projected to increase at an annual rate of 4 percent per year from FY 2027 through FY 2030. The City provides franchise fee rebates to gas and electric customers who are exempt from State of Iowa sales tax. Franchise fee rebates are provided at the same exemption percent as the State of Iowa sales tax exemption indicated on the individual gas and or electric bill. To receive a franchise fee rebate, a rebate request form must be completed by the customer, the gas and/or electric bill must be attached, and requests for rebates for franchise fees must be submitted during the fiscal year in which the franchise fees were paid except for June. Natural Gas franchise fee rebates have been projected to decrease 46 percent under 2025 budget of $101,399 and Electric franchise fee rebates have been projected to decrease 3 percent under 2025 budget of $845,095. The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal maximum, on June 1, 2015. q)Property Tax Rate. For purposes of budget projections only, it is assumed that City property taxes will continue to increase at a rate necessary to meet additional requirements over resources beyond FY 2026. r)Police & Fire Protection. FY 2026 reflects the fourteenth year that payment in lieu of taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection. In FY 2026, the Sanitary Sewer fund is charged 0.43% of building value and the Water fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire Protection. This revenue is reflected in the General Fund and is used for general property tax relief. Budget Overviews 163 Page 528 of 1094 EXPENDITURE HIGHLIGHTS EXPENDITURE PROJECTIONS The expenditure projection process starts with 5 year projections calculated on all tax levied funds (General, Transit, Debt, Tort, and Trust & Agency). Prior year actual's and current year-to-date amounts are used to project both the current year and next four year’s revenues. The City Manager and the Chief Financial Officer review estimates, with input from the Finance Director, to make informed judgments on expenditure trends and economic conditions. The Budget and Fiscal Policy Guidelines are recommended to City Council for adoption. The Departments then submit their estimates and the Chief Financial Officer, Budget Manager, and Budget Analysts review all details, discusses with Departments, makes appropriate adjustments and prepare the Budget Financial Summary for their Department. Budget Hearings begin with the City Manager, Assistant City Manager, Chief Financial Officer, Budget Manager, Budget Analysts, and each Department. At the Hearings, reviews are completed of Department revenues, expenses, and ending fund balances or property tax support change to determine if fees and charges need to be adjusted. Many funds have a restricted or a minimum fund balance required for cash flow or other purposes. Fund balances above the restricted amounts are used to fund nonrecurring expenses. HOW THE MONEY IS SPENT RECOMMENDED FY2026 BUDGET Debt Service 10.6% Public Safety 15.0% Public Works 19.7% Health & Social Services 0.4% Culture & Recreation 7.4% Community & Econ. Dev. 9.8% General Government 7.4% Business Type 29.6% TOTAL RECOMMENDED BUDGET $276,185,089 *Excludes transfers and non-program expense for self-insurance, Metro Landfill accounts & Agency Fund accounts. Budget Overviews 164 Page 529 of 1094 The major requirement assumptions used in preparing the Fiscal Year 2026 recommended budget include the following: Employee Expense ($+2,524,899/ +3.08% over FY 2025 Adopted Budget) a)Pension Systems. i) The Municipal Fire and Police Retirement System of Iowa (MFPRSI) 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 $2,185 for Police and $1,821 for Fire or a total of $4,007). ii) The Iowa Public Employee Retirement System (IPERS) City contribution is unchanged from the FY 2025 contribution rate of 9.44% (no general fund impact). The IPERS employee contribution is unchanged from the FY 2025 contribution rate of 6.29% (which does not affect the City’s portion of the budget). The IPERS rate is anticipated to increase 1 percent each succeeding year. b)Collective Bargaining. The already approved collective bargaining agreements for Dubuque Professional Fire Fighters Association and International Union of Operating Engineers include a 3.50% wage increase. The already approved collective bargaining agreement for the Dubuque Police Protective Association includes a 5% wage increase. The Teamsters Local Union No. 120 Bus Operators and Teamsters Local Union No. 120 are in contract negotiations.Non-represented employees include a 3.00% wage increase. 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. Total cost of the wage increases for collective bargaining and non-represented employees, and classification and compensation study is $2,026,133 to the General Fund. c)Health Insurance. The City portion of health insurance expense is projected to remain unchanged from $1,119 per month per contract to $1,119 per month per contract (based on 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%. Budget Overviews 165 Page 530 of 1094 d)Five-Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible retirees with at least twenty years of continuous service in a full-time position or employees who retired as a result of a disability and are eligible for pension payments from the pension system can receive payment of their sick leave balance with a maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick leave payout expense budget in the General Fund in FY 2025 was $283,061 as compared to FY 2026 of $288,742, based on qualifying employees officially giving notice of retirement. e)50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick leave payout expense budget in the General Fund in FY 2025 was $124,908 as compared to FY 2026 of $128,496, based on FY 2025 year-to-date expense. f)Parental Leave. Effective March 8, 2019, employees may use Parental leave to take paid time away from work for the birth or the adoption of a child under 18 years old. Eligible employees receive their regular base pay (plus longevity) and benefits for twelve weeks following the date of birth, adoption event or foster-to-adopt placement. If both parents are eligible employees, each receive the leave benefit. There is no parental leave expense budgeted in the General Fund based on departments covering parental leave with existing employees and not incurring additional cost for temporary help. Supplies and Service ($+5,611,333 / +9.62% over 2025 Adopted Budget) g)Supplies & Services. General operating supplies and services are estimated to increase 2% over actual in FY 2024. A 2% increase is estimated in succeeding years. h)Electricity. Electrical energy expense is estimated to increase 16% over FY 2024 actual expense, then 2% per year beyond. i)Natural Gas. Natural gas expense is estimated to increase 36% over FY 2024 actual then 2% per year beyond. j)Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will continue at 50% of actual hotel/motel tax receipts. k)Equipment & Machinery. Equipment costs for FY 2026 are estimated to decrease 22.45% under FY 2025 budget, then remain constant per year beyond. l)Debt Service. Debt service is estimated based on the tax-supported, unabated General Obligation bond sale for fire truck and franchise fee litigation settlement. m)Unemployment. Unemployment expense in the General Fund decreased from $33,922 in FY 2025 to $23,824 in FY 2026 based on estimated premium for FY2025. n)Motor Vehicle Fuel. Motor vehicle fuel is estimated to decrease 9% under the FY 2025 budget, then increase 2.0% per year beyond. o)Motor Vehicle Maintenance. Motor vehicle maintenance is estimated to increase 1% from the FY 2025 budget based on FY 2024 actual, then increase 2.0% per year and beyond. p)Public Transit. The decrease in property tax support for Transit from FY 2025 to FY 2026 is $34,152, 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 ($138,076); decrease in supplies and services ($41,013); a reduction in equipment replacements ($18,576), an increase in passenger fare revenue ($20,693). Budget Overviews 166 Page 531 of 1094 q)Public Transit (continued): The following is a ten-year history of the Transit subsidy: : Fiscal Year Amount % Change 2026 Projection $ 1,927,336 (3.10) % 2025 Budget $ 1,961,488 26.70 % 2024 Actual $ 1,548,127 (1.52) % 2023 Actual $ 1,571,981 (1.83) % 2022 Actual $ 1,601,290 (2.09) % 2021 Actual $ 1,635,441 4.94 % 2020 Actual $ 1,558,460 (0.82) % 2019 Actual $ 1,571,307 (0.10) % 2018 Actual $ 1,572,825 34.10 % 2017 Actual $ 1,172,885 24.41 % 2016 Actual $ 942,752 (13.20) % 2015 Actual $ 1,086,080 45.51 % r)Shipping & Postage. Postage rates for FY 2026 are estimated to increase 3% over FY 2024 actual expense and proposed cost increases by United States Postal Service. A 3.0 percent increase is estimated in succeeding years. s)Insurance. Insurance costs are estimated to change as follows: •Workers Compensation is increasing 6.88% based on rate change. •General Liability is increasing 1.25% based on based on FY 2025 actual plus 1.25%. •Damage claims is increasing 35.26% based on a three year average. •Property insurance is decreasing based on FY 2025 actual less 1%. t)Housing. The Housing Choice Voucher subsidy payment from the General Fund is estimated to increase $78,583 in FY 2026. The budgeted administrative cost of the Housing Choice Voucher Program increased from $875,932 in FY 2025 to $909,225 in FY 2026. Administrative revenue of the Housing Choice Voucher Program decreased from $759,336 in FY 2025 to $713,338 in FY 2026. The resulting Housing Choice Voucher Program deficit increased from $116,596 in FY 2025 to $195,887 in FY 2026. This deficit is funded by property taxes. u)Media Services Fund. The Media Services Fund no longer funds Police and Fire public education, Information Services, Health Services, Building Services, Legal Services, and City Manager’s Office due to reduced revenues from the cable franchise. In FY26, the Media Services Fund will no longer fund Communication Department positions and positions have been shifted to the General Fund with a partial offset to administrative overhead recharges to enterprise funds. This is due to Mediacom’s conversion from a Dubuque franchise to a state franchise in October 2009 which changed the timing and calculation of the franchise fee payments. Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is expended, the City will be responsible for all City Media Service equipment replacement costs. Other jurisdictions will need to plan accordingly. Budget Overviews 167 Page 532 of 1094 v)Communications Department. In Fiscal Year 2026, Cable Utility Franchise Tax revenue paid to the City by Mediacom and ImOn, as required by the state franchise fee agreement, will no longer be enough to support Communications Department employee expense. A vacant part-time (0.75 FTE) Communications Assistant position is recommended to be eliminated. All remaining Cable Utility Franchise Tax supported positions are recommended to be moved to the General Fund. This General Fund expense will be partially offset by administrative overhead recharges to the enterprise funds. The Cable Utility Franchise Tax revenue will support Communications Department supplies and services only going forward. w)Greater Dubuque Development Corporation. Greater Dubuque Development Corporation support of $836,135 is budgeted to be paid mostly from Dubuque Industrial Center Land Sales in FY 2026, with $26,500 for True North strategy paid from the Greater Downtown TIF. In FY 2027 and beyond Greater Dubuque Development Corporation will be paid from the Greater Downtown TIF and Dubuque Industrial Center West land sales. Capital Outlay ($-1,807,871 / (28.24)% under FY 2025 Adopted Budget) x)Equipment costs for FY 2026 are estimated to decrease (3.67)% under FY 2025 budget, then remain constant per year beyond. Debt Service ($+2,556,885 / +9.55% under FY 2025 Adopted Budget) y)Debt service is estimated based on the tax-supported, unabated General Obligation bond sale for fire truck and franchise fee litigation settlement. Budget Overviews 168 Page 533 of 1094 CITY OF DUBUQUE COSTS OF MUNICIPAL SERVICES INCREASE FOR AVERAGE HOME'S CITY UTILITY AND PROPERTY TAX EXPENSE FY 1989-2028 FISCAL YEAR WATER SEWER GAS & ELECTRIC FRANCHISE FEE REFUSE MONTHLY RATE %INCR/ (DECR) STORMWATER MONTHLY FEE %INCR RESIDENTIAL PROPERTY TAX CHANGE PASSED BY CITY COUNCIL PROPERTY TAX RATE CHANGE IN ANNUAL COST OF MUNICIPAL SERVICES FY 1988 Base $ 13.95 FY 1989 3.00 % 0.00 % (11.40) % (11.40) %$ 11.80 FY 1990 3.00 % 3.00 % (0.89) % (0.89) %$ 11.69 $ 9.55 FY 1991 2.00 % 2.00 % 3.77 % 3.77 %$ 12.27 $ 40.20 FY 1992 3.00 % 3.00 % 3.58 % 3.58 %$ 12.77 $ 36.39 FY 1993 0.00 % 0.00 % 5.19 % 5.19 %$ 12.50 $ 49.10 FY 1994 0.00 % 0.00 % 0.30 % 0.30 %$ 12.61 $ 1.51 FY 1995 0.00 % 0.00 % 2.43 % 2.43 %$ 11.78 $ 6.41 FY 1996 3.00 % 0.00 % (0.87) % (0.87) %$ 11.78 $ (12.69) FY 1997 0.00 % 0.00 % (0.42) % (0.42) %$ 11.38 $ (5.19) FY 1998 0.00 % 0.00 % (0.71) % (0.71) %$ 11.40 $ (6.66) FY 1999 4.00 % 0.00 % 0.00 % 0.00 %$ 11.07 $ 5.30 FY 2000 1.00 % 0.00 % (0.17) % (0.17) %$ 10.72 $ 0.51 FY 2001 3.00 % 0.00 % 0.00 % 0.00 %$ 11.07 $ 9.45 FY 2002 0.00 % 4.00 % 0.00 % 0.00 %$ 10.76 $ 79.73 FY 2003 (July and August)$ 8.20 Pre UBP System FY 2003 2.00 % 1.00 % 2.00 %$ 7.20 -12.20 % (5.00) % (5.00) %$ 10.21 $ 15.40 FY 2004 4.68 % 3.00 % 2.00 %$ 7.60 5.56 % 1.29 1.54 % 0.00 %$ 10.27 $ 43.89 FY 2005 3.00 % 4.00 % 2.00 %$ 8.51 11.97 % 1.29 0.00 % 0.40 % (1.48) %$ 10.07 $ 29.31 FY 2006 4.00 % 5.50 % 2.00 %$ 8.70 2.23 % 1.79 38.76 % 1.90 % 0.00 %$ 9.70 $ 36.45 FY 2007 4.00 % 9.00 % 2.00 %$ 9.46 8.74 % 2.25 25.70 % (1.52) % (3.73) %$ 9.98 $ 26.57 FY 2008 5.00 % 5.00 % 2.00 %$ 9.89 4.55 % 3.25 44.44 % 2.72 % 0.00 %$ 10.32 $ 52.96 FY 2009 9.00 % 9.00 % 2.00 %$ 10.35 4.65 % 4.00 23.08 % 5.41 % 2.76 %$ 9.97 $ 72.76 FY 2010 3.00 % 5.00 % 3.00 %$ 10.60 2.42 % 4.00 0.00 % 2.40 % 0.00 %$ 9.86 $ 55.60 FY 2011 4.00 % 11.00 % 3.00 %$ 11.09 4.62 % 5.25 31.25 % 5.65 % 2.47 %$ 10.03 $ 75.93 FY 2012 5.00 % 15.00 % 3.00 %$ 10.72 -3.34 % 5.60 6.67 % 8.19 % 4.88 %$ 10.45 $ 74.61 FY 2013 15.00 % 15.00 % 3.00 %$ 11.69 9.05 % 5.60 0.00 % 6.82 % 5.00 %$ 10.78 $ 105.34 FY 2014 9.00 % 17.00 % 3.00 %$ 12.74 8.98 % 5.60 0.00 % 4.90 % 4.90 %$ 11.03 $ 86.83 FY 2015 5.00 % 5.00 % 3.00 %$ 13.24 3.92 % 5.98 6.79 % 3.23 % 3.23 %$ 11.03 $ 66.45 FY 2016 10.00 % 10.00 % 5.00 %$ 13.90 4.98 % 6.38 6.69 % 2.63 % 2.63 %$ 11.03 $ 139.07 FY 2017 3.00 % 3.00 % 5.00 %$ 14.77 6.26 % 6.81 6.74 % 1.08 % 1.08 %$ 11.22 $ 46.98 FY 2018 3.00 % 3.00 % 5.00 %$ 15.11 2.30 % 7.27 6.75 % 0.00 % 0.00 %$ 10.89 $ 33.25 FY 2019 3.00 % 3.00 % 5.00 %$ 15.37 1.72 % 7.76 6.74 % 1.91 % 1.92 %$ 10.59 $ 47.83 FY 2020 5.00 % 4.50 % 5.00 %$ 15.62 1.63 % 8.29 6.83 % 0.00 % 0.00 %$ 10.33 $ 48.76 FY 2021 0.00 % 0.00 % 5.00 %$ 14.99 -4.03 % 8.29 0.00 % -0.14 % (0.14) %$ 10.14 $ (8.94) FY 2022 3.00 % 3.00 % 5.00 %$ 15.38 2.60 %9 8.56 % 0.00 % 0.00 %$ 9.89 $ 37.32 FY 2023 5.00 % 9.00 % 5.00 %$ 15.38 0.00 % 9.00 0.00 % 2.96 % 2.96 %$ 9.72 $ 90.30 FY 2024 8.00 % 6.00 % 5.00 %$ 15.83 2.93 % 10.00 11.11 % 2.94 % 2.94 %$ 9.90 $ 174.43 FY 2025 12.00 % 9.00 % 5.00 %$ 17.25 8.97 % 10.50 5.00 % 6.01 % 5.00 %$ 9.92 $ 169.63 FY 2026 9.00 % 9.00 % 5.00 %$ 18.11 5.00 % 11.03 5.05 % 5.77 %??$ 152.27 PROJECTION FY 2027 8.50 % 10.00 % 5.00 %$ 19.74 9.00 % 12.13 9.97 % 7.34 %??$ 196.43 FY 2028 8.50 % 10.00 % 5.00 %$ 21.52 9.02 % 13.34 9.98 % 6.48 %??$ 204.55 FY 2029 8.50 % 10.50 % 5.00 %$ 23.46 9.01 % 14.54 9.00 % 2.98 %??$ 191.04 FY 2030 8.00 % 10.50 % 5.00 %$ 25.57 8.99 % 15.85 9.01 % 4.49 %??$ 219.42 AVERAGE CHANGE FY1989-2025 3.96 % 4.51 % 3.41 % 11.20 % 1.48 % 0.82 %$ 10.84 $ 48.18 *These projections do not include any anticipated tax burden shifts as a result of state-issued equalization orders or rollback factors. Budget Overviews 169 Page 534 of 1094 The projections for the cost of municipal services are based on average water usage of 6,000 gallons per month and assessed value on the home in FY 2026 of $196,508 (before rollback). State increased property taxes to the average homeowner by underfunding the Homestead property tax credit. FY 2020-2026 residential property tax projections assume Homestead property tax credit funded 100%, which has happened since FY 2014. The Utility Franchise Fee for gas and electric is calculated for all years using the FY 2015 electric gas rates for average residential customers. Budget Overviews 170 Page 535 of 1094 RATES AND COMPARISONS Water Rate Comparison for Largest Iowa Cities with Water Softening Rank City Water Rate (6,000 Gallons/residence avg.) 7 Des Moines (FY26) 46.00 6 West Des Moines (FY26) 45.41 5 Cedar Rapids (FY26) 44.02 4 Dubuque (FY26) 43.74 3 Iowa City (FY26) 38.59 2 Ames (FY26) 37.77 1 Council Bluffs (FY26) 37.13 Average w/o Dubuque 41.49 Counc i l B l u f f s Ames Iowa C i t y Avg w / o D u b u q u e Dubuq u e Cedar R a p i d s West D e s M o i n e s Des M o i n e s $.00 $10.00 $20.00 $30.00 $40.00 $50.00 Dubuque’s water is some of the best in the world! The highest rate (Des Moines (FY26)) is 5% higher than Dubuque’s rate, and the average is (5)% lower than Dubuque. Sanitary Sewer Rate Comparison for Eleven Largest Iowa Cities Rank City Sanitary Sewer Rate (Based on 6,000 Gallons/month) 11 Des Moines (FY26) 63.70 10 Davenport (FY26) 62.29 9 Ankeny (FY26) 60.37 8 Dubuque (FY26) 59.73 7 Sioux City (FY26) 57.00 6 Cedar Rapids (FY26) 45.54 5 Ames (FY26) 41.91 4 West Des Moines (FY26) 41.87 3 Waterloo (FY26) 39.97 2 Iowa City (FY26) 38.71 1 Council Bluffs (FY26) 37.28 Average w/o Dubuque 48.86 Counc i l B l u f f s Iowa C i t y Waterl o o West D e s M o i n e s Ames Cedar R a p i d s Avg w / o D u b u q u e Sioux C i t y Dubuq u e Anken y Daven p o r t Des M o i n e s $— $25.00 $50.00 $75.00 The highest rate (Des Moines (FY26)) is 7% higher than Dubuque’s rate, and the average is 18% lower than Dubuque. Budget Overviews 171 Page 536 of 1094 Solid Waste Collection Rate Comparison for Eight Largest Iowa Cities (With Weekly Collection of Refuse, Recycling, and Yard Waste included in Monthly Fee) Rank City Solid Waste Monthly Rate 8 Ames (FY26)$ 28.80 7 Cedar Rapids (FY26)$ 23.32 6 Ankeny (FY26)$ 22.82 5 Iowa City (FY26)$ 22.50 4 Council Bluffs (FY26)$ 22.00 3 Dubuque (FY26)$ 18.11 2 Sioux City (FY26)$ 16.50 1 Waterloo (FY26)$ 15.00 Average w/o Dubuque $ 21.56 Waterl o o Sioux C i t y Dubuq u e Avg. w / o D u b u q u e Counc i l B l u f f s Iowa C i t y Anken y Cedar R a p i d s Ames $.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 The highest rate (Ames (FY26)) is 59% higher than Dubuque’s rate, and the average is (2)% lower than Dubuque. Stormwater Rate Comparison for the Largest Iowa Cities with Stormwater Fees Rank City Stormwater Rate 10 Des Moines (FY26)$ 19.29 9 Dubuque (FY26)$ 11.03 8 West Des Moines (FY26)$ 9.90 7 Cedar Rapids (FY26)$ 8.08 6 Ankeny (FY26)$ 7.50 5 Iowa City (FY26)$ 5.50 4 Ames (FY26)$ 5.20 3 Waterloo (FY26)$ 5.00 2 Sioux City (FY26)$ 4.88 1 Davenport (FY26)$ 3.35 Average w/o Dubuque $ 7.63 Daven p o r t Sioux C i t y Waterl o o Ames Iowa C i t y Anken y Avg w / o D u b u q u e Cedar R a p i d s West D e s M o i n e s Dubuq u e Des M o i n e s $— $5.00 $10.00 $15.00 $20.00 The highest rate (Des Moines (FY26)) is 75% higher than Dubuque’s rate, and the average is 31% lower than Dubuque. Budget Overviews 172 Page 537 of 1094 PROPERTY TAXES How Your Property Tax Rate is Split FY 2025 Consolidated Rate of 30.1238 City 33.0% County 18.7% School District 43.1% NICC 3.1%Independent 2.1% How Your Property Tax Payment is Split FY 2025 City $855.82 County $484.70 School District $1,120.46 NICC $81.17Independent $55.04 Taxing Body FY 2025 City 32.95 % County 18.66 % School District 43.14 % NICC 3.13 % Independent 2.12 % 100 % Calculating City Property Tax Assessed Value $ 196,507.70 Rollback x 0.463428 Taxable value $ 91,067.17 City Tax rate/$1,000 x 30.1238 Gross Prop. Tax $ 2,743.29 Homestead Credit $ 146.10 Net Property Tax $ 2,597.19 *The chart to the left is based upon an average home assessment of 196,508. The inset box provides a summary of how your City property tax is calculated. Property taxes are certified July 1 with the first half due on or before September 30 and the second half due on or before March 31. The first half taxes becomes delinquent on October 1 and the second half taxes become delinquent on April 1. There is a 1.5% per month penalty for delinquency. Taxes are collected by the County and distributed to the City monthly in proportion of its levy to all levies. Budget Overviews 173 Page 538 of 1094 FISCAL YEAR 2026 RECOMMENDED BUDGET CITY PROPERTY TAX RATE AND TAX LEVY TAX LEVY Total Tax Levy/ Non-Debt Levy Debt Levy Tax Rate Tax Levy Total Tax Levy (Tax Asking including Debt) FY 2024 $ 26,318,378 $ 304,738 $ 26,623,116 Divided by Valuation Subject to Property Tax $ 2,684,506,784 $ 3,126,185,690 Tax Rate $9.8038 $0.0975 $9.9013 Tax Levy Total Tax Levy (Tax Asking including Debt) FY 2025 $ 27,933,412 $ 290,069 $ 28,223,481 Divided by Valuation Subject to Property Tax $ 2,837,887,310 $ 3,480,398,093 For All Levies Including Debt Service Tax Rate $9.8430 $0.0833 $9.9263 Tax Rate = Net Requirement FY 2026 $ 29,576,046 $ 285,870 $ 29,861,916 Divided by Valuation Subject to Property Tax $ 2,962,580,907 $ 3,550,421,468 Tax Rate in Dollars per $1,000 Tax Rate $9.9833 $0.0805 $10.0638 BUDGET FY 2024 BUDGET FY 2025 BUDGET FY 2026 TAX LEVY FUNDS Rate in Amount Rate in Amount Rate in Amount Dollars/$1,000 Levied Dollars/$1,000 Levied $1,000 Levied General Fund $ 3.3123 $ 8,891,851 $ 3.0047 $ 8,526,884 $ 4.0696 $ 12,056,483 Transit Fund 0.5767 1682830 0.6912 2,095,776 0.6526 1,933,430 Debt Service Fund 0.0975 304738 0.0833 290,069 0.0805 285,870 Tort Liability Fund 0.2136 573461 0.5076 1,440,514 0.5232 1,549,924 Trust and Agency Fund 5.6510 15170236 5.6396 15,870,238 5.3905 15,969,639 TOTAL $ 9.8511 $ 26,623,116 $ 9.9264 $ 28,223,481 $ 10.7164 $ 31,795,346 City Property Tax Rate Comparison for Eleven Largest Iowa Cities Rank City Tax Rate 11 Waterloo (FY26)$ 21.79 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 (FY26)*$ 11.75 3 Ankeny (FY25)*$ 10.53 2 Ames (FY26)$ 10.25 1 Dubuque (FY26)$ 10.06 AVERAGE w/o Dubuque $ 15.61 Dubuque has the LOWEST property tax rate as compared to the eleven largest cities in the state. The highest rate (Waterloo (FY26)) is 116.54% higher than Dubuque’s rate, and the average is 55.15% higher than Dubuque. Dubuque's adopted FY 2026 property tax is $10.06 (increase of 1.38% from FY 2025) *Includes the transit tax levy adopted by the Des Moines Area Regional Transit Authority for comparability. Budget Overviews 174 Page 539 of 1094 VALUATION GROWTH History of Taxable Debt Valuation (in millions) $2,584 $2,726 $2,760 $2,834 $2,895 $2,985 $3,047 $3,161 $3,126 $3,480 $3,550 Valuation Growth (in millions) FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 $1,000 $2,000 $3,000 $4,000 The FY 2026 budget is based upon a 2.01% decrease ($70,023,375) to the taxable debt valuation for the City. Without Tax Increment Financing there is a 4.39% increase in the taxable valuation for all other levies (General Fund property tax levy). The total taxable debt valuation of $3,550,421,468 is made up of the following components: Valuation by Class of Property Taxable Debt Valuation Percentage of Valuation Change from Prior Year Residential & Ag property $ 2,066,506,326 58.20 % 2.77 % Ag Land & building 3,458,250 0.10 % 1.10 % Commercial property 1,284,555,835 36.18 % 1.84 % Industrial property 155,382,134 4.38 % 2.41 % Railroad bridge 4,642,387 0.13 % 0.26 % Other 570,764 0.02 % 0.29 % Utilities 69,623,692 1.96 % (0.54) % Less: Veterans credit (30,859,670) (0.87) % 65.29 % Ag Land & building (3,458,250) (0.10) % 1.10 % Total $ 3,550,421,468 100 % 2.01 % Tax Increment Financing (TIF) ($587,840,561) (8.51) % Taxable Levy $ 2,962,580,907 4.39 % Utilities - Excise Tax Legislation in FY 2001 changed the taxation of utilities from a property tax to an excise tax. The City's tax rate/$1,000 is first calculated on a valuation which includes utilities, then those calculated rates are used against a valuation figure with utilities removed. The excise tax makes up the difference in each levy. Budget Overviews 175 Page 540 of 1094 Rollback The growth in the valuation for the City of Dubuque continues to be impacted by the State of Iowa rollback adjustment. The State adjusts taxable valuations based upon a formula using the growth of the value of agricultural land. In the late 1980’s the rollback was 80.6%, meaning only 80.6% of the value was taxable. For FY 2024 the State issued rollback for residential property is 46.34%. Budget Overviews 176 Page 541 of 1094 Comparison for Eleven Largest Iowa Cities Taxable Value per Capita Rank City Taxes Per Capita Tax Rate 2020 Census Population Taxable Value With Gas & Electric 11 West Des Moines $ 1,369.26 $ 11.7500 68,723 8,008,456,794 10 Council Bluffs $ 1,070.30 $ 17.6928 62,799 3,798,941,941 8 Cedar Rapids $ 1,033.25 $ 16.6562 137,710 8,542,691,980 9 Waterloo $ 975.19 $ 21.7916 67,314 3,012,359,619 7 Iowa City $ 965.09 $ 15.6331 74,828 4,619,428,123 6 Ankeny $ 938.68 $ 10.5296 67,887 6,051,862,725 5 Davenport $ 922.25 $ 16.6067 101,724 5,649,193,758 4 Des Moines $ 885.12 $ 17.5600 214,133 10,793,516,550 3 Sioux City $ 858.14 $ 17.6615 85,797 4,168,738,612 2 Dubuque $ 599.41 $ 10.0637 59,667 3,553,879,718 1 Ames $ 568.65 $ 10.2545 66,427 3,683,666,474 AVERAGE w/o Dubuque $ 958.59 $ 15.61 94,734 5,832,885,658 Dubuque is the SECOND LOWEST taxes per capita as compared to the eleven largest cities in the state. The highest (West Des Moines) is 128.43% higher than Dubuque's taxes per capita, and the average is 68.57% higher than Dubuque. Budget Overviews 177 Page 542 of 1094 IMPACT OF BUDGET ON CLASS OF PROPERTY RESIDENTIAL - HOMESTEAD CREDIT ONLY $855.82 $889.20 City Property Tax paid by the average homeowner 2025 2026 $500 $550 $600 $650 $700 $750 $800 $850 $900 $950 Fiscal Year 2025 January 1, 2023 Valuation $159,503 Revaluation 23.20 % Assessed Value $196,508 Less Rollback Factor 0.463428 Fiscal Year 2025 Taxable Value $91,067 Fiscal Year 2025 City Tax Rate $9.92638 Fiscal Year 2025 City Property Tax $903.97 Homestead Tax Credit $(48.14) Net Fiscal Year 2025 City Property Tax $855.82 Fiscal Year 2026 January 1, 2024 Valuation $196,508 Revaluation — % Assessed Value $196,508 Less Rollback Factor 0.474316 Fiscal Year 2026 Taxable Value $93,207 Fiscal Year 2026 City Tax Rate $10.06372 Fiscal Year 2026 City Property Tax $938.01 Homestead Tax Credit $(48.81) Net Fiscal Year 2026 City Property Tax $889.20 Dollar Increase in Property Tax $33.38 Budget Overviews 178 Page 543 of 1094 IMPACT OF BUDGET ON CLASS OF PROPERTY RESIDENTIAL - HOMESTEAD EXEMPTION 65+ AND MILITARY EXEMPTION $855.83 $783.53 City Property Tax paid by the average homeowner 2025 2026 $550 $600 $650 $700 $750 $800 $850 $900 Fiscal Year 2025 January 1, 2023 Valuation $159,503 Revaluation 23.20 % Assessed Value $196,508 Less Rollback Factor 0.463428 Fiscal Year 2025 Taxable Value $91,067 Homestead 65+ Exemption $(3,250) Military Exemption $(4,000) Taxable Value $83,817 Fiscal Year 2025 City Tax Rate $9.92638 Fiscal Year 2025 City Property Tax $903.97 Homestead Tax Credit $(48.14) Net Fiscal Year 2025 City Property Tax $855.83 Fiscal Year 2026 January 1, 2024 Valuation $196,508 Revaluation — % Assessed Value $196,508 Less Rollback Factor 0.474316 Fiscal Year 2026 Taxable Value $93,207 Homestead 65+ Exemption $(6,500) Military Exemption $(4,000) Taxable Value $82,707 Fiscal Year 2026 City Tax Rate $10.06372 Fiscal Year 2026 City Property Tax $832.34 Homestead Tax Credit $(48.81) Net Fiscal Year 2026 City Property Tax $783.53 Dollar Decrease in Property Tax $(72.30) Budget Overviews 179 Page 544 of 1094 IMPACT OF BUDGET ON COMMERCIAL PROPERTY - $150,000 (648 Properties $150,000 and Below) $690 $716 City Property Tax paid by the average commercial tax payer 2025 2026 $600 $800 Fiscal Year 2025 January 1, 2023 Valuation $120,000 Revaluation 25 % First Tier Rollback $150,000 First Tier Rollback $150,000 Less Residential Rollback Factor 0.46343 Fiscal Year 2025 First Tier Taxable Value $69,515 Second Tier Rollback $0 Less Rollback Factor $0.9000 Fiscal Year 2025 Second Tier Taxable Value $0 Fiscal Year 2025 Total Taxable Value $69,515 Fiscal Year 2025 City Tax Rate $9.92638 Fiscal Year 2025 City Property Tax $690.02 Dollar Increase in Property Tax $40.69 Fiscal Year 2026 January 1, 2024 Valuation $150,000 Revaluation — % Assessed Value $150,000 First Tier Rollback $150,000 Less Residential Rollback Factor 0.47432 Fiscal Year 2026 First Tier Taxable Value $71,148 Second Tier Rollback $0 Less Rollback Factor 0.9000 Fiscal Year 2026 Second Tier Taxable Value $0 Fiscal Year 2026 Total Taxable Value $71,148 Fiscal Year 2026 City Tax Rate $10.06372 Fiscal Year 2026 City Property Tax $716.00 Dollar Increase in Property Tax $25.98 Budget Overviews 180 Page 545 of 1094 IMPACT OF BUDGET ON COMMERCIAL PROPERTY - $300,000 (265 Properties $150,001-$300,000) $2,030 $2,075 City Property Tax paid by the average commercial tax payer 2025 2026 $1,600 $1,800 $2,000 $2,200 Fiscal Year 2025 January 1, 2023 Valuation $240,000 Equalization Order 25 % Assessed Value $300,000 First Tier Rollback $150,000 Less Residential Rollback Factor 0.46343 Fiscal Year 2025 First Tier Taxable Value $69,515 Second Tier Rollback $150,000 Less Rollback Factor $0.9000 Fiscal Year 2025 Second Tier Taxable Value $135,000 Fiscal Year 2025 Total Taxable Value $204,515 Fiscal Year 2025 City Tax Rate $9.92638 Fiscal Year 2025 City Property Tax $2,030.08 Dollar Increase in Property Tax $416.41 Fiscal Year 2026 January 1, 2024 Valuation $300,000 Revaluation — % Assessed Value $300,000 First Tier Rollback $150,000 Less Residential Rollback Factor 0.47432 Fiscal Year 2026 First Tier Taxable Value $71,148 Second Tier Rollback $150,000 Less Rollback Factor 0.9000 Fiscal Year 2026 Second Tier Taxable Value $135,000 Fiscal Year 2026 Total Taxable Value $206,148 Fiscal Year 2026 City Tax Rate $10.06372 Fiscal Year 2026 City Property Tax $2,074.61 Dollar Increase in Property Tax $44.53 Budget Overviews 181 Page 546 of 1094 IMPACT OF BUDGET ON COMMERCIAL PROPERTY - $450,000 (149 Properties $301,000-$450,000) $3,370 $3,433 City Property Tax paid by the average commercial tax payer 2025 2026 $0 $1,000 $2,000 $3,000 $4,000 Fiscal Year 2025 January 1, 2023 Valuation $360,000 Revaluation 25 % Assessed Value $450,000 First Tier Rollback $150,000 Less Residential Rollback Factor 0.46343 Fiscal Year 2025 First Tier Taxable Value $69,515 Second Tier Rollback $300,000 Less Rollback Factor 0.9000 Fiscal Year 2025 Second Tier Taxable Value $270,000 Fiscal Year 2025 Total Taxable Value $339,515 Fiscal Year 2025 City Tax Rate $9.92638 Fiscal Year 2025 City Property Tax $3,370.14 Dollar Increase in Property Tax $687.12 Fiscal Year 2026 January 1, 2024 Valuation $450,000 Revaluation — % Assessed Value $450,000 First Tier Rollback $150,000 Less Residential Rollback Factor 0.47432 Fiscal Year 2026 First Tier Taxable Value $71,148 Second Tier Rollback $300,000 Less Rollback Factor 0.9000 Fiscal Year 2026 Second Tier Taxable Value $270,000 Fiscal Year 2026 Total Taxable Value $341,148 Fiscal Year 2026 City Tax Rate $10.06372 Fiscal Year 2026 City Property Tax $3,433.21 Dollar Increase in Property Tax $63.07 Budget Overviews 182 Page 547 of 1094 IMPACT OF BUDGET ON COMMERCIAL PROPERTY - AVERAGE $540,594 (66 Properties $451,000 - $540,594) $4,180 $4,254 City Property Tax paid by the average commercial tax payer 2025 2026 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Fiscal Year 2025 January 1, 2023 Valuation $432,475 Revaluation 25 % Assessed Value $540,594 First Tier Rollback $150,000 Less Residential Rollback Factor 0.46343 Fiscal Year 2026 First Tier Taxable Value $69,515 Second Tier Rollback $390,594 Less Rollback Factor 0.9000 Fiscal Year 2025 Second Tier Taxable Value $351,535 Fiscal Year 2025 Total Taxable Value $421,050 Fiscal Year 2025 City Tax Rate $9.92638 Fiscal Year 2025 City Property Tax $4,179.50 Dollar Increase in Property Tax $1,119.16 Fiscal Year 2026 January 1, 2024 Valuation $540,594 Revaluation — % Assessed Value $540,594 First Tier Rollback $150,000 Less Residential Rollback Factor 0.47432 Fiscal Year 2026 First Tier Taxable Value $71,148 Second Tier Rollback $390,594 Less Rollback Factor 0.9000 Fiscal Year 2026 Second Tier Taxable Value $351,535 Fiscal Year 2026 Total Taxable Value $422,683 Fiscal Year 2026 City Tax Rate $10.06372 Fiscal Year 2026 City Property Tax $4,253.75 Dollar Increase in Property Tax $74.25 Budget Overviews 183 Page 548 of 1094 IMPACT OF BUDGET ON CLASS OF PROPERTY INDUSTRIAL $5,005 $5,090 City portion of property tax paid by the average industrial tax payer 2025 2026 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 Fiscal Year 2025 January 1, 2023 Valuation $599,500 Revaluation 5.58 % Assessed Value $632,952 First Tier Rollback $150,000 Less Residential Rollback Factor 0.46343 Fiscal Year 2025 First Tier Taxable Value $69,515 Second Tier Rollback $482,952 Less Rollback Factor 0.9000 Fiscal Year 2025 Second Tier Taxable Value $434,657 Fiscal Year 2025 Total Taxable Value $504,172 Fiscal Year 2025 City Tax Rate $9.92638 Fiscal Year 2025 City Property Tax $5,004.60 Dollar Decrease in Property Tax $187.33 Percent Decrease in Property Tax 4.14% Fiscal Year 2026 January 1, 2024 Valuation $632,952 Revaluation — % Assessed Value $632,952 First Tier Rollback $150,000 Less Residential Rollback Factor 0.47432 Fiscal Year 2026 First Tier Taxable Value $71,148 Second Tier Rollback $482,952 Less Rollback Factor 0.9000 Fiscal Year 2026 Second Tier Taxable Value $434,657 Fiscal Year 2026 Total Taxable Value $505,805 Fiscal Year 2026 City Tax Rate $10.06372 Fiscal Year 2026 City Property Tax $5,090.27 Dollar Decrease in Property Tax $85.67 Percent Decrease in Property Tax 1.71% Budget Overviews 184 Page 549 of 1094 FISCAL YEAR 2026 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES WITH PROPERTY TAX IMPACT There were 156 improvement level decision packages requested in Fiscal Year 2026, of which 57 were recommended for funding. The recurring general fund expenditures total $608,385 and will also impact future budget years. The non-recurring general fund expenditures total $261,720. The remaining improvement packages adopted for funding from non-property tax support total $422,257. RECURRING DECISION PACKAGE COSTS GENERAL FUND Airport Convert two Part-time 1.5 FTE NA-44 Customer Service Representative positions to one full-time FTE 1.0 G-25C Administrative Support Professional position R $ (458) $ (458) Airport Additional costs for general advertising; currently entire advertising budget is for the State of Iowa Service Grant R $ 10,000 $ 10,000 Airport Purchase of an airfield deice brining system. This portion is costs savings. Also includes a non-recurring portion R $ (6,500) $ (6,500) City Attorney’s Office Creating Assistant Attorney I position (1.00 FTE, GE-37). Also includes a non-recurring portion of technology R $ 131,484 $ 101,322 $ 30,162 City Manager's Office Professional development for Employee Resource Groups, including speakers or conferences,R $ 15,000 $ 11,559 $ 3,441 City Manager's Office Professional development for the City Manager's Office Administrative Assistants (two positions). If approved, this package would allow each Administrative Assistant to travel to one annual training event R $ 6,000 $ 4,624 $ 1,376 City Manager's Office Upgrade Director of Stategic Partnerships from 0.75 FTE (GE-44) to 1.00 FTE (GE-44), This would be an incease of 0.25 FTE Combine two current positions--the Grant Analyst position (1.00 FTE, GE-27) and the ICMA Management Fellow position (1.00 FTE, GE-29)--into one new position, which would be the Management/Grant Analyst (1.00 FTE, GE-29). This would be a decrease of 1.00 FTE In total, this would be a net decrease of 0.75 FTE. In addition, the net cost is $0 Cost of new position structure: $300,524 Less cost of old position structure: $285,353 Less other CMO funding identified to fill the gap (education and travel/conferences): $15,171 R $ — $ — $ — Communications Office ArcGIS Indoor Maps software to model indoor spaces. Software needed to begin projects, including an existing CIP R $ 18,500 $ 12,711 $ 5,789 Communications Office Addition of 1.00 FTE (GE-33) GIS Developer to the GIS (Geographic Information System) Office. Also has a non- recurring component for technology (computer, etc)R $ 103,188 $ 70,900 $ 32,288 Communications Office Addition of 1.00 FTE (GE-30) GIS Applications Specialist to the GIS (Geographic Information System) Office. Also has a non-recurring component for technology (computer, etc)R $ 89,993 $ 61,834 $ 28,159 Communications Office Subscription to ArcGIS Hub Premium software R $ 8,000 $ 5,497 $ 2,503 Communications Office Addition of a 1.00 FTE (GE-30) GIS Data Analyst to the GIS (Geographic Information System) Office R $ 89,993 $ 61,834 $ 28,159 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -185-Page 550 of 1094 Communications Office This improvement package request is for a online form solution to accept electronic form submittals for grant and assistance applications, some licenses and permits, resident feedback, and more through the City website. Also includes a non recurring portion of $5,000 for one time implementation fees R $ 15,000 $ 15,000 Communications Office This improvement package request is integrate an artificial intelligence (AI)-based chat solution into the City website to offer the option of automated customer service. This service would provide smart text messaging, web chat, and interactive text alerts for residents and stakeholders. Also includes a non-recurring portion of $7990 for implementation R $ 16,650 $ 16,650 Communications Office This improvement package request is integrate an artificial intelligence (AI)-based chat solution into the City website to offer the option of automated customer service. This service would provide smart text messaging, web chat, and interactive text alerts for residents and stakeholders. Also contains a non-recurring portion for implementation costs R $ 16,650 $ 16,650 Community Impact Establishes the first program in the Equitable Fine and Fee initiative by providing the resources to launch the Community Impact Service Program, will focus on utility billing fines and fees, allow customers to preform service in lieu of financial payment for utility bills R $ 30,000 $ 30,000 Community Impact Increasing the City's funding for salary and benefits for the Community Impact Full-Time Administrative Assistant position (increase of 0.37 FTE). The position currently exists as a full time position (1.00 FTE, GE-25). This poistion was partially funded by a grant that is no longer available due to no fault of the City R $ 26,497 $ 26,497 Community Impact Create a new part time AmeriCorps Program Supervisor position (0.75 FTE, GE-25). This position will work directly with other host site supervisors to help strengthen relationships with community partners to ensure proper compliance and support is provided to our members in relation to the AmeriCorps Grant.R $ 39,166 $ 39,166 Economic Development Addition of an Economic Development Financial and Project Specialist 1.00 FTE GE-31. Includes a non-recurring portion for technology R 86,215 64,661 21,554 Economic Development Addition of an Economic Development Project Coordinator 1.00 FTE GE-30. Includes a non-recurring portion for technology R 82,486 82,486 Economic Development An increase in the stipend paid to artists who are chosen to display sculptures on the riverfront. Raising the stipend will directly affect the ability of artists to secure materials, resulting in an increased number of diverse and minority artist participants.R 2,200 2,200 Economic Development Purchase of additional printing costs for the Art on the River brochures and translation services. This includes translation from English to Spanish and Marshallese for both the brochures as well as the Otocast recordings with the intent to be more inclusive of Dubuque’s diverse population R 1,454 1,454 Emergency Communications Remove two vacant part-time Dispatcher positions (0.47 FTE each for a total of 0.94 FTE, OE-15) and replace them with a full-time Dispatcher position (1.00 FTE, OE-15). R 16,142 8,071 8,071 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -186-Page 551 of 1094 Emergency Communications Purchase a paid version of a program called Prepared Assist - Unlimited, which would include features like two way text for dispatchers, the ability to receive live video and pictures, and live auditor translation in 19 languages and texting translation in 140 languages. Includes recurring cost of $25,350 and non-recurring cost of $5,000 for one time implementation R 25,350 25,350 Engineering Implement Engineering personnel reclassification - Eliminate 1.46 FTE in PT Inflow and Infiltration Inspectors and replace with 1.00 FT Inflow and Infiltration (Stormwater Fund). Also Creation of a 0.73 FTE Sidewalk Inspector position (Tax Funds). This portion is for the creation of the Sidewalk Inspector.R 52,575 52,575 Engineering Funding to allow the Engineering Department to serve as a host site for an AmeriCorps member through the AmeriCorps program administered by the City of Dubuque. The Engineering department has hosted an AmeriCorps member in the past, but a dedicated budget has not existed for it R 15,000 15,000 Engineering Fund request from East Central Intergovernmental Association (ECIA) for an additional $20,000 in local match funding for STREETS project. These matching planning funds are utilized to aid the engineering department with special projects and grants.R 20,000 20,000 Finance A bilingual, self-service payment kiosk providing residents with an around the clock bill payment solution. The kiosk can be installed indoors or outdoors. Also includes a non- recurring portion of $40,000 R 8,000 8,000 — Fire Software for property preplanning to use for fire responses.R 5,650 5,650 Fire Data analytics software solution to analyze risk data to support risk reduction and risk management plans R 20,000 20,000 Fire Add a Firefighter position, 1.00 FTE, F-01 to reach appropriate staff levels for frontline fire suppression vehicles (two positions requested in FY26, this is request 1 of 2)R 100,646 100,646 Fire Add a Firefighter position, 1.00 FTE, F-01 to reach appropriate staff levels for frontline fire suppression vehicles (two positions requested in FY26, this is request 2 of 2)R 100,646 100,646 Health Microchip implantation program for animals brought to the Humane Society R 5,000 5,000 Health Low cost rabies vaccinations for low income pet owners R 5,000 5,000 Health 2 staff to attend NEHA Conference R 2,063 2,063 Health 1 employee to attend the Emergency Preparedness Summit R 4,810 4,810 Health 1 employee to attend the IAEM (Intl Assoc of Emergency Managers) Conference R 2,100 2,100 Housing Increase financial assistance to ensure Community Solutions of Eastern Iowa (CSEI) is able to continue to staff and manage the Housing Hotline R 35,000 35,000 Housing 1 employee to attend the AACE Conference.R 2,000 2,000 Human Resources Establish a Leadership Institute for City of Dubuque employees. A series of courses designed to build and strengthen skills necessary to perform at the highest levels of the City of Dubuque Universal Competencies and behave consistently with the City’s values as set forth in the SPIRIT statement. R 20,000 15,412 4,588 Human Resources Increase the amount of annual funding available through the City’s Tuition Reimbursement Program.This will allow for accepting new applicants into the program in FY 2026.R 25,000 19,265 5,735 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -187-Page 552 of 1094 Human Resources Additional branding supplies and outreach giveaways for the City of Dubuque at recruitment fairs, job fairs, and other city- wide events to help promote career opportunities and the overall City of Dubuque brand. R 1,000 771 229 Human Resources Establish a conferences budget (enough for two conferences) for the Employee Relations Manager Positions. Currently no conference budget for that position.R 5,000 3,853 1,147 Human Resources Employment Specialist position from 0.75 FTE to 1.0 FTE R 31,481 24,259 7,222 Human Resources Funding to allow the Administrative Assistant position to attend the Office Dynamics International conference each year R 2,000 1,541 459 Information Services Purchase of 100 licenses of Microsoft Copilot to enhance productivity R 36,000 36,000 Information Services Hire an additional User Technology Specialist 1.0 FTE. Also includes a non-recurring portion for technology R 85,494 85,494 Information Services To provide ongoing training annually for help desk and user technology specialist staff at the Tyler Conference, Neogov HRIS conference and local training conferences.R 13,000 13,000 Information Services To provide ongoing training for two Senior Network/System Administrators and Chief Information Technology Security Officer R 21,000 21,000 Information Services Purchase compact rapid deployable system (CRD system), which delivers cellular and high speed internet anywhere communications are needed. Also includes a non-recurring portion for initial purchase R 3,000 3,000 Library Replace the 0.5 FTE NA-38 intern position with a 0.5 FTE G-25 Library Assistant to be added to the Information Technology activity to support increased usage of the Maker Space R 5,587 5,587 Library Replace 1.0 FTE G-30 Library Aide-Adult Services to 1.0 FTE G-32 Librarian I R 10,416 10,416 Library Replace 1.0 FTE G-30 Library Aide-Youth Services to 1.0 FTE G-32 Librarian I R 10,416 10,416 Library Replace 1.0 FTE G-30 Library Aide-Teen Services to 1.0 FTE G-32 Librarian I R 10,416 10,416 Multicultural Family Center Create a new part-time Teen Night Specialist position at the Multicultural Family Center (0.75 FTE, NA-25). This position will provide support to the teen program and is critical to ensuring a structured, engaging, and secure environment for the growing number of teens participating in these popular evening programs.R 40,197 40,197 Parks Addition of 1.00 FTE Full Time Maintenance Technician (GD-06) for the Bee Branch Greenway, which would be partially offset by the elimination of 0.11 FTE Temporary Groundskeeper position (NA-12) and elimination of 0.50 FTE Temporary Landscape Crew position (NA-12). Contains parts in the Stormwater Fund as well R (20,490) (20,490) Parks Addition of 1.00 FTE Full Time Forestry Technician (GD-06), which is offset by eliminating a 0.50 FTE Temporary Forestry Laborer Position (GD-06)R 43,638 43,638 Parks Addition of 1.0 FTE GD-06 Parks Maintenance position, which would be partially offset by the elimination of 0.96 FTE Temporary Parks Groundskeeper position R 42,791 42,791 Parks Addition of 1510 hours 0.72 FTE for Temporary Park Rangers during the park season R 38,233 38,233 Parks Funding to send Park Division Forestry staff to an out of town conference R 1,731 1,731 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -188-Page 553 of 1094 Police Costs to send 1/3 of each ERG to conferences annually.R 20,000 20,000 Police Recurring subscription cost of virtual driving training software R 5,400 5,400 Police Upgrade of 7 gas only cars to hybrid cars R 52,668 52,668 Planning Zoning Enforcement Officer to attend the Iowa Association of Code Enforcement Officials (IowACE) Conference Annually.R 800 548 252 Planning Funds for an additional planner position to attend the National American Planning Association Conference (APA).R 3,000 2,057 943 Planning This improvement package request is to increase fees for multiple Planning and Zoning Applications by 2% to accurately reflect the cost of service after deep analysis of current costs. These changes will create an additional $1,533 in revenue each year. This improvement package furthers the City Council goal of Financially Responsible, High-Performance City Organization: Sustainable, Equitable, and Effective Service Delivery.R — 1,533 (1,533) Public Works Centralize and expand camera/Automatic Vehicle Location (AVL) capabilities to the entire city-wide fleet. AVL systems allow for real-time GPS tracking of all fleet vehicles, providing complete visibility over vehicle locations, routes, and status. This enables fleet managers to optimize route planning, reduce fuel consumption, and improve delivery times. The cost of this package is in the garage fund, with cost savings in the general fund, road use tax fund, sanitary sewer fund, and stormwater fund R (4,080) (4,080) Public Works Purchase single point operation point monitoring. These devices can be utilized on construction sites, snow and ice operations, flood monitoring, and more. This allows for notifications to be sent if an unexpected operational concern arise and also allows for remote monitoring resulting in a a decrease in overtime costs for certain operations as it relates to security of job sites and other operations R (2,250) (2,250) Public Works This improvement package would provide funding to recognize Public Works employees, such as City SWAG, additional leave time, etc.R 1,249 1,249 Public Works Increase the number of uniform shirts (short sleeve and long sleeve) from three (3) to six (6) annually and add funding for two (2) stocking caps per employee.R 961 961 Public Works Centralize and expand camera/Automatic Vehicle Location (AVL) capabilities to the entire city-wide fleet. AVL systems allow for real-time GPS tracking of all fleet vehicles, providing complete visibility over vehicle locations, routes, and status. This enables fleet managers to optimize route planning, reduce fuel consumption, and improve delivery times. The cost of this package is in the garage fund, with cost savings in the general fund, road use tax fund, sanitary sewer fund, and stormwater fund R (23,160) (23,160) Public Works Purchase single point operation point monitoring. These devices can be utilized on construction sites, snow and ice operations, flood monitoring, and more. This allows for notifications to be sent if an unexpected operational concern arise and also allows for remote monitoring resulting in a a decrease in overtime costs for certain operations as it relates to security of job sites and other operations R 7,605 7,605 Public Works Increase the number of uniform shirts (short sleeve and long sleeve) from three (3) to six (6) annually and add funding for two (2) stocking caps per employee.R 3,512 3,512 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -189-Page 554 of 1094 Public Works Add two full-time Utility Worker Positions (2.00 FTE, GD-05). These positions would provide flagger safety to street and sewer maintenance operations. y hiring 2.00 FTEs, this would allow the city to take on more hauling, and the Port of Dubuque parking lots internally, instead of outsourcing.R 113,630 113,630 Public Works This improvement package would purchase vehicle safety kits (first aid, thermal blankets, sunscreen, etc) for each vehicle in the Public Works fleet.N 6,600 6,600 Public Works Centralize and expand camera/Automatic Vehicle Location (AVL) capabilities to the entire city-wide fleet. AVL systems allow for real-time GPS tracking of all fleet vehicles, providing complete visibility over vehicle locations, routes, and status. This enables fleet managers to optimize route planning, reduce fuel consumption, and improve delivery times. The cost of this package is in the garage fund, with cost savings in the general fund, road use tax fund, sanitary sewer fund, and stormwater fund R 125,000 125,000 Public Works Increase the tool allowance for each Fleet Maintenance Technician. The fleet operations assessment recommends the best practice is to provide a $750 annual tool allowance for mechanics required to provide and keep their own tools at work.R 4,500 4,500 Public Works Funding for the purchase of steel toe boots for Fleet Maintenance staff, increasing safety. The fleet operations assessment recommends providing an annual boot allowance for mechanics' safety. With this shoe allowance, a policy on shoe specifications will be developed utilizing partnerships with private and other public entities’ requirements.R 880 880 Public Works Increase the number of uniform shirts (short sleeve and long sleeve) from three (3) to six (6) annually and add funding for two (2) stocking caps per employee.R 287 287 Public Works Extend the asphalt overlay program from 8 miles to 10 miles. R 256,170 20,000 236,170 Recreation $700 increase in education funding for two supervisor level positions and the addition of $2,200 in education funding for the new Business Development Manager position R 3,600 3,600 Recreation As hiring is still expected to be a challenge in future years, this request seeks to increase the Recreation advertising line item by $25,000 on a recurring basis.R 25,000 25,000 Recreation Option 1 of 2 for Four Mounds Summer Camp: Permanent funding to continue to support the Four Mounds Adventure Day Camp--CDBG funding is no longer available. Option 2 of 2 is in the non-recurring section.R 57,000 57,000 Recreation Increases of $1 in golf fees and cart rentals R 48,000 (48,000) Recreation Increase the Golf Pro Position from 0.94 FTE to 1.00 FTE. The current Part Time position already has Health Care and Life Insurance as the position was contracted. This requests changes the position to be a normal City Employee R 4,278 4,278 Transportation Services - Transit Funding to create a new part-time Bus Attendant Position (0.50 FTE, GE-23A). This position is needed due to safety concerns with student on the afternoon buses. Student ridership continues to increase, which also results in increases in safety concerns and distractions for driver.R 25,484 25,484 TOTAL GENERAL FUND RECURRING PACKAGES 2,315,544 548,252 1,767,292 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -190-Page 555 of 1094 NON-RECURRING DECISION PACKAGE COSTS GENERAL FUND Airport Purchase of 4 column lifts to provide a safe lifting environment when repairing large snow removal equipment/ vehicles.N 59,950 59,950 Airport Purchase of an airfield deice brining system. This portion is for initial purchase of system N 11,330 11,330 Airport Purchase of a second terminal belt loader.N 28,000 28,000 City Attorney’s Office Creating Assistant Attorney 1 position. 1.0 FTE. This is the technology portion N 5,590 4,308 1,282 City Manager's Office Funding to update the 2011 Urban Forestry Evaluation N 37,500 28,898 8,603 City Manager's Office Establishing bike infrastructure policies, executing a cross- departmental implementation agenda, and creating and executing an alternative transportation education and communication campaign. If improvement package for permanent Climate Action Coordinator Position is not funded, then this package is not needed as there will not be capacity to implement N 26,450 20,382 6,068 City Manager's Office Make the Climate Action Coordinator position permanent or extend position for one more year, which is currently limited term and set to expire at the end of FY25. This reflected non- recurring funding to help offset the cost in FY26 ($12,000 through a grant, and $48,911 in FY25 carryovers related to vacancy savings from the time period that the position was not filled).N 46,148 38,315 7,833 Communications Office Addition of 1.00 FTE (GE-33) GIS Developer to the GIS (Geographic Information System) Office. This is non- recurring technology (computer, etc)N 5,308 3,647 1,661 Communications Office Addition of 1.00 FTE (GE-30) GIS Applications Specialist to the GIS (Geographic Information System) Office. This is non- recurring technology (computer, etc)N 5,308 3,647 1,661 Communications Office Addition of a 1.00 FTE (GE-30) GIS Data Analyst to the GIS (Geographic Information System) Office. This is non- recurring technology (computer, etc)N 5,308 3,647 1,661 Communications Office Office space remodeling to accommodate new GIS (Geographic Information System) Office positions requested N 25,000 17,178 7,823 Communications Office Online form solution to accept electronic form submittals for grant and assistance applications, some licenses and permits, resident feedback, and more through the City website. This is non-recurring implementation fees N 5,000 5,000 Communications Office This improvement package request is integrate an artificial intelligence (AI)-based chat solution into the City website to offer the option of automated customer service. This service would provide smart text messaging, web chat, and interactive text alerts for residents and stakeholders. This is non-recurring portion for implementation N 7,990 7,990 Communications Office This improvement package request is integrate an artificial intelligence (AI)-based chat solution into the City website to offer the option of automated customer service. This service would provide smart text messaging, web chat, and interactive text alerts for residents and stakeholders. This is one time implementation costs N 7,990 7,990 Community Impact Four public computers to enhance the Office of Community Impact's ability to connect residents with critical resources.N 10,600 10,600 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -191-Page 556 of 1094 Conference Center The addition of 10 cameras in the public areas of the Grand River Center. No security cameras are in the public space, entrances or exits. This project includes cameras, cabling and installation. N 50,000 50,000 Economic Development Addition of an Economic Development Financial and Project Specialist 1.00 FTE GE-31. This is non-recurring portion for technology N 4,590 3,443 1,148 Economic Development Addition of an Economic Development Project Coordinator 1.00 FTE GE-30. This is non-recurring portion for technology N 4,590 4,590 Emergency Communications Purchase a paid version of a program called Prepared Assist - Unlimited, which would include features like two way text for dispatchers, the ability to received live video and pictures, and live auditor translation in 19 languages and texting translation in 140 languages. This portion is non-recurring cost of $5,000 for one time implementation N 5,000 5,000 Emergency Communications Purchase a laptop, mouse, and backpack for Public Safety dispatchers to use for required courses/certifications that are now offered online and require a quiet space/location N 2,500 2,500 Engineering Upgrade an existing smaller 2 Wheel Drive truck (unit 911) to a full size 4 Wheel Drive pickup truck. The current smaller truck struggles to get around with poor or wet project site conditions and not safe when trying to navigate snow-packed roads for sidewalk inspections in the winter on Dubuque's hills and side streets.N 19,000 19,000 Finance A bilingual, self-service payment kiosk providing residents with an around the clock bill payment solution. The kiosk can be installed indoors or outdoors. This is the one time portion for implementation cost N 40,000 40,000 — Fire Funding to accommodate the Center for Public Safety Excellence (CPSE) site visit. Includes lodging/ accommodations, flight, per diem, transportation, and other minor costs associated with the site visit.N 9,800 9,800 Health Services Hire a company to wrap the Animal Control truck with graphics/design to make the truck more vibrant and welcoming.N 2,500 2,500 Housing Purchase of a computer kiosk and scanner at the Federal Building for Inspection & Construction Services for residents to submit permit applications online N 5,400 5,400 Housing Switch to laptop computers with docking stations as opposed to desktop computers for inspectors.N 2,000 2,000 Human Resources The purchase of City of Dubuque shirts. The shirts consist of polos and long sleeve shirts with an embroidered "City of Dubuque Masterpiece on the Mississippi" logo and the text "Human Resources Department."N 875 674 201 Human Resources Provide Crucial Conversations training (including lunch) to all City Staff — Option 1A is being requested, but see other options below, which reduce costs by training staff over multiple fiscal years and cutting lunch costs. Option 3C is recommended.N 25,488 19,641 5,847 Information Services Hire an additional User Technology Specialist 1.0 FTE. Technology for the position. This is the technology portion N 2,900 2,900 Information Services Purchase of a fluke optical time domain reflectometer (ODTR) tester. An OTDR tester is necessary for analyzing fiber optic cable performance from end to end by testing components along the cable, including connection points, bends, and splices. The device would also indicate strength of the signal to distance intended. N 29,000 29,000 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -192-Page 557 of 1094 Information Services Provide for secure storage for the new offices at the Chavenelle site. The existing site has little to no storage included.N 10,000 10,000 Information Services Purchase compact rapid deployable system (CRD system), which delivers cellular and high speed internet anywhere communications are needed. This is the portion for initial purchase N 34,997 34,997 Office of Equity and Human Rights Purchase a bus wrap and implement a social media campaign to advertise the existence of this department.N 5,875 5,875 Office of Equity and Human Rights Implement a new program called "Bridge Building for a New Dubuque"N 8,750 8,750 Parks Installation of network switches and additional equipment at Veterans Memorial Park and the Eagle Point Park tollbooth.N 25,000 25,000 Parks Equipment trailer for the Park Division. This trailer will be used to transport the Park Division's mini excavator. Currently the Park Division has to borrow a trailer from the Public Works Department when it is available to transport the mini excavator. N 24,000 24,000 Planning Services The purchase of bike gear to be distributed to youth through the Dubuque Safe Routes to School committee. This is a partnership between the City of Dubuque, Dubuque Community School District, Dubuque Metropolitan Area Transportation Study (DMATS), the Bike Coop, and the Iowa Safe Routes to School program N 563 386 177 Planning Services Sending the Assistant Planner to Leadership Dubuque.N 1,525 1,046 479 Planning Services Sending the Planning Technician to Dale Carnegie training.N 2,350 1,611 739 Planning Services Purchase of City of Dubuque shirts N 480 329 151 Police Purchase of car cameras for patrol vehicles N 16,148 16,148 Police Keep two squad cars for driver training instead of trading in N (22,000) 22,000 Public Works Replace the current asphalt roller, powered by diesel, with an electric roller. N 40,000 40,000 Public Works Funding to support and build reliability and trust within the Public Works Team utilizing Dale Carnegie team building consultant and resources.N 26,000 26,000 Public Works Funding to support and team building within the Public Works Team utilizing Dale Carnegie team building consultant and resources.N 26,000 26,000 Recreation Option 2 of 2 for Four Mounds Summer Camp: One time funding to continue to support the Four Mounds Adventure Day Camp through the summer 2025 season--CDBG funding is no longer available N 47,745 47,745 TOTAL GENERAL FUND NON-RECURRING PACKAGES 760,548 165,152 595,399 TOTAL RECURRING AND NON-RECURRING TAX SUPPORTED $ 3,076,092 $ 713,404 $ 2,362,691 Department Description R/N ADDL Expense ADDL Revenue Net Tax Impact Budget Overviews -193-Page 558 of 1094 ENTERPRISE FUNDS Stormwater Fund Engineering Increase the available operating stormwater repair funds due to increased construction costs, increase backlog of deferred maintenance, additional identification of high-risk stormwater management infrastructure requiring immediate repairs, and the observed increase in more intense wet weather events that have further deteriorated existing stormwater infrastructure R $50,000 $50,000 Engineering Upgrade the scheduled FY26 replacement of a current Engineering staff computer from a desktop to a laptop. The City does not allow the use of personal computers and personal mobile phones to remotely access resources directly on the City’s network.N $1,200 $1,200 Engineering Delay the scheduled FY 2025 replacement of a current Engineering staff desktop computer and upgrade it to a laptop in FY 2026. To offset the cost of the increase, the staff member has elected to forego their assigned tablet (and tablet data plan) that was also scheduled for replacement in FY 2025. N $260 $260 Engineering Cost savings of tablet data plan in the above package R ($480) ($480) Engineering Implement Engineering personnel reclassification - Eliminate 1.46 FTE in PT Inflow and Infiltration Inspectors and replace with 1.00 FT Inflow and Infiltration (Stormwater Fund). Also Creation of a 0.73 FTE Sidewalk Inspector position (Tax Funds). This portion is for the Inflow and Infiltration Inspectors R ($2,695) ($2,695) Public Works Centralize and expand camera/Automatic Vehicle Location (AVL) capabilities to the entire city-wide fleet. AVL systems allow for real-time GPS tracking of all fleet vehicles, providing complete visibility over vehicle locations, routes, and status. This enables fleet managers to optimize route planning, reduce fuel consumption, and improve delivery times. The cost of this package is in the garage fund, with cost savings in the general fund, road use tax fund, sanitary sewer fund, and stormwater fund R ($960) ($960) Public Works Increase the number of uniform shirts (short sleeve and long sleeve) from three (3) to six (6) annually and add funding for two (2) stocking caps per employee.R $611 $611 Parks Addition of 1.00 FTE Full Time Maintenance Technician (GD-06) for the Bee Branch Greenway, which would be partially offset by the elimination of 0.11 FTE Temporary Groundskeeper position (NA-12) and elimination of 0.50 FTE Temporary Landscape Crew position (NA-12). This is the portion in the Stormwater Fund, other portion is in the general fund R $77,628 $77,628 Subtotal Stormwater Fund $125,564 $— $125,564 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON-PROPERTY TAX FUNDS Department Description R/N ADDL Expense ADDL Revenue Net Impact Budget Overviews -194-Page 559 of 1094 Water Fund Water Secure funding for valve maintenance needs that arise due to long periods of time between valve exercising R $80,000 $80,000 Subtotal Water Fund $80,000 $— $80,000 Sanitary Sewer Fund Engineering Add an additional $128,000 to the available operating sanitary sewer repair funds due to increased construction costs, increase backlog of deferred maintenance, and additional identification of high-risk sewer main requiring immediate repairs through the Asset Management Program R $128,000 $128,000 WRRC Ongoing training for the Industrial Pretreatment Coordinator position within the WRRC Department. R $300 $300 WRRC The addition of an intern position at the WRRC (0.40 FTE, . This intern position would assist the WRRC director with managing large Capital Improvement Plan (CIP) projects. This internship will charge their time to CIP projects R $19,767 $19,767 WRRC funding for the City to join the National Association of Clean Water Agencies. NACWA offers strong advocacy and representation at the federal level, ensuring that the city's interests are considered in the development of national regulatory and legislative policies, especially on emerging issues such as PFAS (per- and polyfluoroalkyl substances) and microplastics.R $1,100 $1,100 WRRC Funding for the WRRC Director, WRRC Plant Manager, Industrial Pretreatment Coordinator, and Administrative Support Professional to attend the annual Growing Sustainability Conference held annually in Dubuque.R $1,220 $1,220 WRRC Allows for the WRRC Industrial Pretreatment Coordinator to attend the National Association of Clean Water Agencies' annual National Pretreatment Workshop & Training event. R $2,850 $2,850 WRRC The purchase and implementation of SwiftComply, a cloud- based compliance management platform designed to enhance the efficiency and effectiveness of the City of Dubuque’s Industrial Pretreatment Program.R $18,500 $18,500 WRRC One time cost of the above package N $5,000 $5,000 Public Works Centralize and expand camera/Automatic Vehicle Location (AVL) capabilities to the entire city-wide fleet. AVL systems allow for real-time GPS tracking of all fleet vehicles, providing complete visibility over vehicle locations, routes, and status. This enables fleet managers to optimize route planning, reduce fuel consumption, and improve delivery times. The cost of this package is in the garage fund, with cost savings in the general fund, road use tax fund, sanitary sewer fund, and stormwater fund R ($1,440) ($1,440) Public Works Increase the number of uniform shirts (short sleeve and long sleeve) from three (3) to six (6) annually and add funding for two (2) stocking caps per employee.R $790 $790 Subtotal Sanitary Sewer Fund $176,087 $— $176,087 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON-PROPERTY TAX FUNDS Department Description R/N ADDL Expense ADDL Revenue Net Impact Budget Overviews -195-Page 560 of 1094 Solid Waste Fund Public Works Purchase additional 96-Gallon Recycling Carts to support customer requests, and expansion of the Commingled Recycling Diversion Program N $31,515 $31,515 Public Works Purchase additional 65-Gallon Yard Waste and 13-Gallon Food Scraps carts to support expansion of the Organics Diversion Activity N $11,600 $11,600 Public Works Purchase spill cleanup kits for each of the vehicles in the Resource Management fleet. As operations moves toward Automated Curbside Collection, the vehicles require more hydraulic lines which leak. To prevent these leaks from entering the storm water system, we are recommending spill kits be added to all vehicles for drivers to apply to hydraulic leaks, in the field, as they occur.N $5,100 $5,100 Public Works Increase the number of uniform shirts (short sleeve and long sleeve) from three (3) to six (6) annually and add funding for two (2) stocking caps per employee.R $3,243 $3,243 Subtotal Solid Waste Fund $51,458 $— $51,458 Landfill Fund Public Works Increase the number of uniform shirts (short sleeve and long sleeve) from three (3) to six (6) annually and add funding for two (2) stocking caps per employee. R $748 $748 Subtotal Landfill Fund $748 $— $748 TOTAL NON-PROPERTY TAX FUND PACKAGES $433,857 $— $433,857 TOTAL IMPROVEMENT PACKAGES ALL FUNDS $3,431,273 $536,130 $2,895,143 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON-PROPERTY TAX FUNDS Department Description R/N ADDL Expense ADDL Revenue Net Impact Budget Overviews -196-Page 561 of 1094 FULL-TIME EQUIVALENT (FTE) PERSONNEL CHANGES IN RECOMMENDED FY 2026 BUDGET The Fiscal Year 2026 budget increases the full-time equivalents by 7.00 FTE, decreases part-time equivalents by 6.90 FTE, and increases temporary equivalents by 0.50 FTE. The changes can be summarized as follows: Airport Customer Service Representative -1.50 Eliminated to offset the creation of a full time position to help recruitment and provide faster and more effective customer service to passengers Airport Administrative Support Professional 1.00 Created full time position to help recruitment and provide faster and more effective customer service to passengers City Manager’s Office Management Intern -1.00 Eliminated as part of Strategic Partnerships Staff Restructure City Manager’s Office Grant Analyst -1.00 Eliminated as part of Strategic Partnerships Staff Restructure City Manager’s Office Management/Grant Analyst 1.00 Created as part of Strategic Partnerships Staff Restructure City Manager’s Office PT Director of Strategic Partnerships -0.75 Eliminated as part of Strategic Partnerships Staff Restructure City Manager’s Office FT Director of Strategic Partnerships 1.00 Created as part of Strategic Partnerships Staff Restructure Communications Office Communications Assistant -0.75 Eliminated due to the reduction in the Cable Utility Franchise Fee Revenue Economic Development Financial/Project Specialist 1.00 Created to help administer Tax Increment Financing and Economic Development projects Emergency Communications Public Safety Dispatcher 1.00 -0.94 Created FT dispatcher position to draw more qualified applicants and better work environment. Engineering PT I & I Inspector Removed -1.46 Eliminated to implement the results of a recent personnel reclassification study in the Engineering Department Engineering PT Sidewalk Inspector 0.73 Created to implement the results of a recent personnel reclassification study in the Engineering Department Engineering FT I & I Inspector 1.00 Created to implement the results of a recent personnel reclassification study in the Engineering Department Engineering Land Surveyor -1.00 Position was reclassified to Civil Engineer II during the Compensation and Classification Study Engineering Civil Engineer II 1.00 Position created as a result of the Compensation and Classification Study DEPARTMENT POSITION FULL- TIME PART- TIME TEMPORARY Budget Overviews 197 Page 562 of 1094 Engineering Civil Engineer I -1.00 Position was reclassified to Civil Engineer II during the Compensation and Classification Study Engineering Civil Engineer II 1.00 Position created as a result of the Compensation and Classification Study Engineering Confidential Account Clerk -1.00 Position was reclassified to Engineering Grant Accountant during the Compensation and Classification Study Engineering Engineering Grant Accountant 1.00 Position created as a result of the Compensation and Classification Study Engineering Engineering Technician -1.00 Position was reclassified to Water Resources Project Supervisor during the Compensation and Classification Study Engineering Water Resources Project Supervisor 1.00 Position created as a result of the Compensation and Classification Study Finance Budget/Financial Accounting Analyst 1.00 Created to assist with audit processing, reporting, and support growing Finance Department workload. Housing Assisted Housing Coordinator -1.00 Position was reclassified to Assisted Housing Administrator during the Compensation and Classification Study Housing Assisted Housing Administrator 1.00 Position created as a result of the Compensation and Classification Study Human Resources Limited Term Scanning Clerk -0.50 Was approved as a limited term position, therefore is no longer budgeted for Equity and Human Rights Equity and Human Rights Specialist -1.00 Eliminated due to staffing levels being adequate to handle work load while this position has been vacant Parks Maintenance Worker 1.00 Created to help maintain the Bee Branch Area Parks Laborer -0.61 Eliminated to help offset new Maintenance Worker position Police Police Officers -6.00 Eliminated due to ongoing recruiting challenges, cost savings used to establish a new Precision Policing Center. Police Precision Police Technicians 3.00 Created to staff the newly formed Precision Policing Center Police Crime Analyst 1.00 Created to staff the newly formed Precision Policing Center Police Crime Analyst 1.00 Created to staff the newly formed Precision Policing Center Police Confidential Account Clerk -1.00 Position was reclassified to Police Payroll Specialist during the Compensation and Classification Study DEPARTMENT POSITION FULL- TIME PART- TIME TEMPORARY Budget Overviews 198 Page 563 of 1094 Police Police Payroll Specialist 1.00 Position created as a result of the Compensation and Classification Study Police Administrative Assistant -1.00 Position was reclassified to Police Accountant during the Compensation and Classification Study Police Police Accountant 1.00 Position created as a result of the Compensation and Classification Study Public Works Projects and Facilities Manager 1.00 Created to assist the Public Works Director and reduce workload Public Works Custodian -0.68 Increased from part time to full time Public Works Custodian 1.00 Increased from part time to full time Recreation PT Golf Pro -0.94 Golf Pro position increased from Part-Time contract to Full-Time to eliminate an anomaly in the wage plan. Recreation FT Golf Pro 1.00 Golf Pro position increased from Part-Time contract to Full-Time to eliminate an anomaly in the wage plan. Total change in FTE from FY 2025 TOTAL FTE CHANGES 7.00 -6.90 -0.50 (0.40) Total FTE for FY 2026 TOTAL F.T.E.s FOR FY 2026 661.00 56.57 58.25 775.82 DEPARTMENT POSITION FULL- TIME PART- TIME TEMPORARY Budget Overviews 199 Page 564 of 1094 Police Department 90.00 2024-2025 121.00 1985-1990 82.00 121.00 120.00 In 2019, Eliminated a Corporal position and added a Captain and an Officer. FY20 & FY21 added 1 SRO. FY22 added Community Diversion & Prevention Coord. FY23 moved Community Diversion & Prevention Coord to AmeriCorps and added a Patrol Officer. FY24 added 2 Crisis Intervention Team Officers and moved Law Enforcement User Support Specialist to Information Services. 2026 removed 6 Patrol Officers and replaced with 5 new staff for the Precision Policing Center. Emergency Comm — 2026 19.00 1985-1991 8.00 18.00 19.00 Part of Police & Fire Departments in 1981. Added 2 Dispatchers in 2009. 1 Dispatcher added 2017 & 2020.1 Dispatcher added 2023. 1 Dispatcher and Records Clerk added 2024. 2025 shift structure changed from a 10 hour shift to a 12 hour rotating shift. 1 Dispatcher added in 2026 Fire Department 94.00 2025-2026 104.00 1988-1990 88.50 104.00 104.00 1 Firefighter added FY20 & FY21. 7 firefighters added in 2023 as well as addition of Civilian Fire Inspector. 1 firefighter and 1 administrative assistant added in 2024. Fire Inspector and Bureau Chief added during 2024 and both Captain and Bureau Chief added 2025. Office of Equity and Human Rights 3.00 1981; 1986 1990-1997; 2006*;2013 -2019 5.00 1982-1985; 1988-1989; 1998-2005; 2026 2.00 3.00 2.00 Community Relations Coordinator added 2013 & Strategic Workforce Equity Coordinator moved to Human Resources in FY21. Community Engagement Coordinator moved to Office of Shared Prosperity and Neighborhood Support in 2023. Equity and Human Rights Specialist eliminated in 2026. Building Safety 12.00 1981; 2016-2018 12.00 1985-1988 6.00 — — Custodians added FT 2015 & FY21. Inspector II Eliminated 2019. Building Services Code Inspection and Construction Services moved to Housing and Facilities Management moved to Engineering in FY22. Health Services 9.50 1981 9.50 1989-2019 4.00 7.00 7.00 Included School Nursing Program in 1981. FT Animal Control Officer added FY20 and FY21. Added Environmental Sanitarian in FY23 Multicultural Family Center — 2022-2026 3.00 2011 1.00 3.00 3.00 MFC Assist. Dir. FT in 2016. MFC Teen Coordinator 2022. Multicultural Family Center moved out of Parks and Recreation Department during 2025, became a division of newly formed Community Impact Department. 0.48 Receptionist positions moved to Recreation Division in 2026. Park Division 27.20 2026 39.98 1996-2001 20.92 25.35 26.35 Added Assist. Gardener 2012. Eliminated FT Park Ranger 2017. Project Manager added in 2023 and 0.15 FTE of Leisure Services Manager allocated to Conference Center. Confidential Account Clerk and Assistant Horticulturalist added in 2024. Added Bee Branch Maintenance Tech in 2026. PERSONNEL COMPLEMENT -- FULL-TIME 1981-2026 DEPARTMENT/1981 45-YEAR HIGH 45-YEAR LOW 2025 NUMBER 2026 NUMBER NOTESDIVISIONNUMBERFISCAL YR NUMBER FISCAL YR NUMBER Budget Overviews 200 Page 565 of 1094 Community Impact — 2025-2026 5.00 2025 5.00 5.00 5.00 AmeriCorps Director shifted from Housing 2012; AmeriCorps Community Outreach Coordinator added in 2022. Community Diversion & Prevention Coord moved from Police, Secretary added to AmeriCorps, & AmeriCorps Coordinator increased to FT in 2023. AmeriCorps division became Community Impact Division in 2024. Community Impact Division became a City department during 2025. Civic Center 13.75 1981 13.75 2005-2019 0.15 0.15 0.15 Changed to private mgmt. 7/1/04. Employees to new firm. 0.15 of Parks and Recreation Director position allocated to Conference Center Conference Center — 2023-2024 0.15 2023 0.15 0.15 0.15 0.15 of Parks and Recreation Director position allocated to Conference Center in 2023. Recreation Division — 2026 9.93 2025 8.93 8.93 9.93 Recreation Division no longer includes Community Impact and Multicultural Family Center beginning in 2026. Facilities Supervisor 2015; Golf Pro increase from Part time to full time in 2026. Recreation Division/ Community Impact Division/ Multicultural Family Center 13.00 2023-2025 16.93 1991; 2007*-2009 7.93 — — *Golf- FT to PT; AmeriCorps Director shifted from Housing 2012; Facilities Supervisor 2015;MFC Assist. Dir. FT in 2016. MFC Teen Coordinator and AmeriCorps Community Outreach Coordinator added in 2022. Community Diversion & Prevention Coord moved from Police, Secretary added to AmeriCorps, & AmeriCorps Coordinator increased to FT in 2023. In FY25, restructure so AmeriCorps Coordinator increase 0.13 FTE from City funding. Library 20.00 2024-2026 22.00 1989 14.00 22.00 22.00 Library Aide Changed to FT 2013. Library Aide added to Teen in FY20. Makerspace Assistant added in 2023. 2 Lead Library Assistants added and a Makerspace Assistant removed in 2024. Airport 8.00 2003, 2026 14.00 1983-1994 7.00 13.00 14.00 Assistant FBO Director added in FY2023. in FY24, PT (0.70 FTE) Marketing Coordinator position eliminated and replaced with 1.0 FTE in PIO that will be assisting Airport in marketing. Administrative Support Professional added 2026. Transportation Services 44.00 1981-1982 44.00 2010-2011 6.00 31.00 31.00 Transit Management changed to City Employees 2016. 1 Transit Dispatcher added 2018. Parking Division merged with Transit Division in 2019 to form the Transportation Services Department. 3 Bus Operators added in FY 2019. 4 Bus Operators added in 2023. 2 Parking Meter Enforcement Officers and 1 Driver Trainer added in 2024. 1 FT Laborer added and a PT laborer eliminated in 2025. Engineering 22.00 2026 40.00 1983; 1985-1987 18.00 39.00 40.00 Temporary Engineering Technician removed FY19. Eliminated Environmental Engineer FY18. Confidential Account Clerk added FY19. Environmental Engineer and Camera Systems Tech added and Engineering Tech removed FY21. Facilities Management moved from Building Svcs. to Engineering in FY22. Utility Locator added in FY23. Confidential Account Clerk and Engineering Technician added and elimination of temporary lease management intern during FY24. Inflow and Infiltration Inspector added 2026. PERSONNEL COMPLEMENT -- FULL-TIME 1981-2026 DEPARTMENT/1981 45-YEAR HIGH 45-YEAR LOW 2025 NUMBER 2026 NUMBER NOTESDIVISIONNUMBERFISCAL YR NUMBER FISCAL YR NUMBER Budget Overviews 201 Page 566 of 1094 Water Department 32.00 1981-1982 32.00 1999-2009 23.00 26.07 26.07 Secretary changed to part-time 2016. Eliminated Plant Manager position in 2019. Confidential Account Clerk in 2020. Water Distribution Maintenance worker added in 2024. Water & Resource Recovery 37.00 1981-1982 37.00 2019 14.50 17.00 17.00 (2) Plant Operators eliminated and Environmental Coordinator added 2016. Assistant Manager, Operator Ii, and Operator IV position removed in FY 2019. Industrial Pre-Treatment Coordinator, Assistant W&RRC Manager, 0.25 FTE Maintenance Supervisor added in 2024. Public Works 1.00 1990-1991 2.00 1993-2001 — — — Public Works 89.00 2026 95.35 1990 73.00 93.42 95.35 Utility Worker Apprentice added FY19; Secretary added FY20; Traffic Signal Tech II added FY21. Sanitation Driver added FY23. Data Scientist ad Secretary added in 2024. Department restructure during 2024: Administrative Assistant upgraded from PT to FT, Assistant Public Works Director eliminated, Field Supervisor added, Fleet Maintenance Procurement Specialist added, elimination of Stock Clerk, and Maintenance Supervisor eliminated. For FY25, Equipment Operator II/Landfill Equipment Operator and Sanitation Driver had FTE's corrected to bring to full-time equivalents Parking Division 9.80 2002-2003 11.50 2019 — — — Eliminated Laborer 2017. Eliminated Laborer 2018. Parking division merged with Transit to become the Transportation Services Department in 2019. Community/ Economic Development 7.00 1981 7.00 2016-2017 2.00 3.00 4.00 Assist. Director, Economic Development Coordinator and Confidential Clerk eliminated and Project Coordinator added in 2016. Arts & Cultural Coordinator FT in 2018. Project Coordinator eliminated and Assist Director added in FY 2020. Financial/Projects Specialist added 2026. Housing Services 12.50 2024-2026 36.00 1984-1985 10.50 36.00 36.00 2.48 Lead positions added 2020; added General Housing Inspector FY20; Assistant Housing Director and Nuisance Specialist added FY20. Building Services Code Enforcement and Construction Services moved to Housing in FY22. Grant Program Manager added in FY23. Combination Inspector added in 2024. Planning Services 4.00 2006*-2024 8.00 1985-1987 2.50 8.00 8.00 *PT Asst Planner to FT Human Resources — 2023-2026 7.00 2019 3.00 7.00 7.00 Strategic Workforce Equity Coordinator moved from Human Rights FY21. Development Training Coord. added FY22. Benefits & Compensation Manager and Employee Relations Manager added FY23. Office of Shared Prosperity and Neighborhood Support — 2025-2026 4.00 2022 1.00 4.00 4.00 Community Engagement Coord moved from Office of Equity and Human Rights and Data Analyst moved from City Manager's Office in FY23. Administrative Assistant became FT in FY24. Communications Office — 2025-2026 8.00 2018 3.00 8.00 8.00 GIS Specialist added and Communications Specialist full-time January 2019. Cable TV combined with Public Information adding Cable TV Coord and Video Producer in FY22. PERSONNEL COMPLEMENT -- FULL-TIME 1981-2026 DEPARTMENT/1981 45-YEAR HIGH 45-YEAR LOW 2025 NUMBER 2026 NUMBER NOTESDIVISIONNUMBERFISCAL YR NUMBER FISCAL YR NUMBER Budget Overviews 202 Page 567 of 1094 City Manager's Office 11.00 2023-2026 9.00 1993 7.60 9.00 9.00 ICMA Management Intern Full-Time FY 2020. 1 Assistant City Manager eliminated FY22. Data Analyst for Office of Shared Prosperity and Neighborhood Support added FY22 and transferred to Office of Shared Prosperity and Neighborhood Support in FY23. Grant Analyst and Climate Action Coordinator added in FY23. 2026 included Grant Analyst and ICMA Management Fellow being eliminated, Director of Strategic partnerships increased to full time, and Management/Grant Analyst added City Clerk's Office 3.00 2023-2026 4.00 1981-2022 3.00 4.00 4.00 Secretary added FY23 Finance Department — 2026 22.00 2020 17.00 21.00 22.00 Finance and Budget consolidated in FY 2020. Budget/Financial Analyst and Confidential Account Clerk added FY20. Budget Director, Purchasing/Safety Coordinator, and Temporary Utility Billing Accountant added 2024. Budget/Financial Analyst added 2025. Finance Department (without Budget Office) 20.50 1981-1989 20.50 1997*-2011, 2019 14.00 — — *Meter Reading Outsourced/Cashier changed to FT 2015. Water Meter Inspector moved to Water Department in 2019. Budget and Finance consolidated FY2020. City Attorney 2.00 2020-2026 5.00 1986 1.00 5.00 5.00 FT City Attorney moved to PT Senior Counsel. FT Assistant City Attorney promoted to City Attorney. Civil Rights Specialist added FY 2020. Information Services 2.50 2024-2025 13.00 1981 2.50 12.00 12.00 Help Desk Position added 2013. Help Desk, User Technology Specialist, and Chief Security Officer added in FY23. Law Enforcement User Support Specialist moved from Police 2024. Cable TV — 1991; 1993 4.00 1981 — — — Consolidated with Communications Office in FY22. City Hall Maintenance 1.00 1981-1982 1.00 1983-2001* — — — *Outsourced (brought back in FY 2006 with PT employees) 588.75 1981 588.25 1989 495.80 654.07 661.00 12.27% Increase 1981-2026 PERSONNEL COMPLEMENT -- FULL-TIME 1981-2026 DEPARTMENT/1981 45-YEAR HIGH 45-YEAR LOW 2025 NUMBER 2026 NUMBER NOTESDIVISIONNUMBERFISCAL YR NUMBER FISCAL YR NUMBER Budget Overviews 203 Page 568 of 1094 FINANCIAL SUMMARIES 204 Page 569 of 1094 This page intentionally left blank. 205 Page 570 of 1094 HOW YOUR CITY SHARE OF PROPERTY TAXES ARE DISTRIBUTED FY 2026 RECOMMENDED OPERATING BUDGET IN LEVIED FUNDS 29.8% 2.0% 20.9% 3.4% 6.4% 3.3% 0.7% 2.3% 7.4% 0.3% 2.6% 1.4% 1.2%0.2% 5.3%0.5% 12.4% Police E911 Fire Transit Parks Recreation Ice Center Civic Center Library Airport Public Works Engineering Finance Purchase of Serv Economic Dev. Debt Other Financial Summaries 206 Page 571 of 1094 FISCAL YEAR 2026 RECOMMENDED BUDGET NET OPERATING BUDGET IN FUNDS INCLUDING TAX LEVY REVENUE BY DEPARTMENT Represents Department's Net Budgets in Funds with Tax Levies Public Safety Police $ 18,805,492 $ 1,358,857 $ 17,446,635 $ 19,519,051 $ 1,446,627 $ 18,072,424 29.75 % Emergency Comm. Center 2,252,384 1,144,172 1,108,212 2,273,118 1,046,115 1,227,003 2.02 % Fire 17,423,325 5,138,058 12,285,267 17,862,495 5,140,196 12,722,299 20.95 % Emergency Management 113,047 2,647 110,400 119,476 1,458 118,018 0.19 % Inspections 961,730 932,030 29,700 959,322 1,099,857 (140,535) (0.23) % Subtotal 39,555,978 8,575,764 30,980,214 40,733,462 8,734,253 31,999,209 52.68 % Health & Social Services Office of Equity & Human Rights 462,747 3,125 459,622 344,833 1,400 343,433 0.57 % Health Services 1,317,396 459,499 857,897 1,251,403 417,769 833,634 1.37 % Subtotal 1,780,143 462,624 1,317,519 1,596,236 419,169 1,177,067 1.94 % Culture & Recreation Parks Division 4,572,287 403,572 4,168,715 4,321,557 409,419 3,912,138 6.44 % Ice Center 428,029 — 428,029 410,684 — 410,684 0.68 % Civic Center 1,486,754 — 1,486,754 1,392,164 — 1,392,164 2.29 % Grand River Center 1,279,167 — 1,279,167 1,173,796 — 1,173,796 1.93 % Recreation 3,845,685 1,923,589 1,922,096 3,939,008 1,912,401 2,026,607 3.34 % Library 4,455,159 46,690 4,408,469 4,519,092 50,645 4,468,447 7.36 % Subtotal 16,067,081 2,373,851 13,693,230 15,756,301 2,372,465 13,383,836 22.04 % Public Works Airport 5,345,463 5,204,617 140,846 5,183,934 5,022,959 160,975 0.27 % Transit 4,694,173 2,598,397 2,095,776 4,772,660 2,710,620 2,062,040 3.39 % Public Works 1,193,639 36,090 1,157,549 1,600,141 36,661 1,563,480 2.57 % Engineering 3,683,283 1,773,742 1,909,541 2,588,788 1,763,696 825,092 1.36 % Subtotal 14,916,558 9,612,846 5,303,712 14,145,523 9,533,936 4,611,587 7.59 % Community & Econ Dev Office of Shared Prosperity and Neighborhood Support 382,696 — 382,696 440,144 — 440,144 0.72 % Economic Development 3,468,385 424,142 3,044,243 3,732,263 493,095 3,239,168 5.33 % Housing & Comm. Dev. 1,470,426 1,852,411 (381,985) 1,468,034 2,010,128 (542,094) (0.89) % Planning 1,041,458 747,226 294,232 1,109,910 769,415 340,495 0.56 % Purchase of Services 100,000 — 100,000 100,000 — 100,000 0.16 % Subtotal 6,462,965 3,023,779 3,439,186 6,850,351 3,272,638 3,577,713 5.89 % General Government Eng-Facilities Mgmt 1,499,929 339,687 1,160,242 1,462,698 377,126 1,085,572 1.79 % City Council 160,510 — 160,510 161,064 — 161,064 0.27 % City Manager's Office 2,000,302 1,476,778 523,524 2,047,931 1,624,388 423,543 0.70 % Human Resources 1,849,895 1,341,428 508,467 1,877,929 1,439,310 438,619 0.72 % Public Information 489,852 354,739 135,113 1,030,317 658,138 372,179 0.61 % City Clerk 539,793 446,208 93,585 620,808 457,483 163,325 0.27 % Finance 4,546,068 3,986,211 559,857 4,825,542 4,099,988 725,554 1.19 % City Attorney 1,106,218 853,176 253,042 1,181,461 902,272 279,189 0.46 % Information Services 2,698,188 860,093 1,838,095 2,916,984 863,338 2,053,646 3.38 % Subtotal 14,890,755 9,658,320 5,232,435 16,124,734 10,422,043 5,702,691 9.39 % Total Without Debt 93,673,480 33,707,184 59,966,296 95,206,607 34,754,504 60,452,103 99.53 % Debt Service 13,597,492 13,307,423 290,069 14,785,469 14,499,599 285,870 0.47 % Total With Debt $ 107,270,972 $ 47,014,607 $ 60,256,365 $ 109,992,076 $ 49,254,103 $ 60,737,973 100.00 % FY 2025 FY 2026 TAXABLE REVENUE GENERATED NET OPERATING TAXABLE REVENUE GENERATED NET OPERATING % OF NET OPERATING DEPARTMENT/DIVISION FUNDS & TRANS IN BUDGET FUNDS & TRANS IN BUDGET BUDGET Financial Summaries 207 Page 572 of 1094 FISCAL YEAR 2026 RECOMMENDED BUDGET DISTRIBUTION OF THE CITY PORTION OF YOUR PROPERTY TAX PAYMENT RESIDENTIAL PROPERTY EXAMPLE For a residential property, with an assessed value of $196,508 (and a taxable value of $93,207) the City portion of their Fiscal Year 2026 (July 1, 2025 - June 30, 2026) tax bill would be $889.20 with homestead tax credit. The distribution of their tax dollars to City departments & divisions would be: Net City of Dubuque Operating Debt Department/Division Expense Service Total Police $ 264.54 $ 264.54 Emergency Comm. Center 17.97 17.97 Fire 186.29 1.38 0.47 % 187.67 Emergency Management 1.69 1.69 Subtotal 468.44 1.38 469.82 Human Rights 5.07 5.07 Health Services 12.19 12.19 Park Division 57.27 57.27 Ice Center 6.05 6.05 Civic Center 20.37 20.37 Grand River Center 17.17 17.17 Recreation 29.69 29.69 Library 65.44 65.44 Subtotal 213.25 — 213.25 Airport 2.41 2.41 Transit 30.15 30.15 Public Works 22.86 22.86 Engineering 12.10 12.1 Economic Development 47.40 47.4 Housing & Comm. Dev. (7.92) (7.92) Purchase of Services 1.43 1.43 Subtotal 108.43 — 108.43 Planning 4.98 4.98 Eng - Facilities Mgmt 15.92 15.92 City Council 2.40 2.4 City Manager's Office 6.23 6.23 Office of Shared Prosperity and Neighborhood Support 6.41 6.41 Human Resources 6.41 6.41 Public Information 5.43 5.43 City Clerk 2.40 2.4 Finance 10.58 2.80 0.47 % 13.38 City Attorney 4.09 4.09 Information Services 30.05 30.05 Subtotal 94.9 2.80 97.7 Grand Total $ 885.02 4.18 $ 889.20 Financial Summaries 208 Page 573 of 1094 BUDGET REVENUE BY CATEGORY Taxes 29% Licenses & Permits 2% Use of Money & Property 9% Intergovernmental Revenue 23% Charges for Services 21% Miscellaneous Revenue 17% Taxes Licenses & Permits Use of Money & Property Intergovernmental Revenue Charges for Services Miscellaneous Revenue FY 2026 RECOMMENDED REVENUE BUDGET $255,639,444 Financial Summaries 209 Page 574 of 1094 SUMMARY OF TOTAL REVENUES BY REVENUE CATEGORY Revenue Category FY 2023 Actual FY 2024 Actual FY 2025 Budget FY26 Recomm'd Budget % Change from Adopted FY25 Taxes Property Taxes $ 26,230,795 $ 27,003,825 $ 28,233,757 $ 29,866,210 5.78 % Local Option Sales Tax 12,200,394 12,195,672 12,927,516 12,905,936 (0.17) % Hotel/Motel Taxes 3,067,602 3,045,661 3,376,383 3,910,460 15.82 % Gaming Tax 605,937 591,179 657,500 591,179 (10.09) % Utility franchise tax 7,057,265 5,678,074 7,412,323 6,517,618 (12.07) % Other Taxes 11,119,159 12,985,322 17,966,657 19,534,000 8.72 % Total Taxes 60,281,152 61,499,733 70,574,136 73,325,403 3.90 % Licenses & Permits Licenses & Permits 3,712,147 4,010,922 4,371,333 4,477,648 2.43 % Total Licenses & Permits 3,712,147 4,010,922 4,371,333 4,477,648 2.43 % Use of Money & Property Interest Earnings 3,005,554 3,395,722 2,419,183 4,219,519 74.42 % Gaming Leases 7,191,475 6,274,026 7,405,579 7,213,362 (2.60) % Other Uses of Money 8,568,313 10,153,054 9,236,669 10,757,387 16.46 % Total Use of Money & Property 18,765,342 19,822,802 19,061,431 22,190,268 (2.79) % Intergovernmental Revenue Federal Grants 12,705,928 17,160,630 28,871,316 38,468,724 33.24 % State Road Use Funds 8,210,851 8,428,119 8,430,000 8,589,783 1.90 % State Grants 1,942,053 10,839,936 7,198,073 9,711,472 34.92 % County Contributions 789,934 730,049 3,062,275 1,475,789 (51.81) % Total Intergovernmental Revenue 23,648,766 37,158,734 47,561,664 58,245,768 (9.56) % Charges for Services Utility Charges 36,574,443 38,715,440 42,918,033 46,462,310 8.26 % Other Charges for Services 5,240,062 5,085,942 6,264,138 6,236,051 (0.45) % Total Charges for Services 41,814,505 43,801,382 49,182,171 52,698,361 3.17 % Special Assessments 108,309 87,053 3,000 117,657 3821.90 % Miscellaneous Revenue Internal Charges 3,448,588 4,058,945 6,067,090 6,724,020 10.83 % Proceeds from Bonds 1,455,236 7,358,016 38,061,244 29,189,076 (23.31) % Other Miscellaneous Revenue 7,601,630 10,056,543 8,053,787 8,671,243 7.67 % Total Miscellaneous Revenue 12,505,454 21,473,504 52,182,121 44,584,339 (14.56) % Total Revenues Before Transfers 160,835,675 187,854,130 242,935,856 255,639,444 5.23 % Transfers 24,896,810 37,051,283 40,357,689 45,969,433 13.91 % Grand Total Revenues $ 185,732,485 $ 224,905,413 $ 283,293,545 $ 301,608,877 6.47 % Financial Summaries 210 Page 575 of 1094 WHERE THE MONEY COMES FROM 2026 OPERATING BUDGET Utilities 28% Federal Funds 8% State Funds 9% Local Taxes 30% Operating Receipts 22% Cash Balances 0.1% Internal Service Funds 3% Other 1% TOTAL RECOMMENDED OPERATING BUDGET $184,381,340 2026 CAPITAL BUDGET Utilities 15% Federal Funds 27% State Funds 1% Local Taxes 23% Bonds/Debt 33% Operating Receipts —% Cash Balances 0.6% TOTAL RECOMMENDED CAPITAL BUDGET $91,803,749 * Excludes Transfers and non-program accounts for self-insurance, Metro Landfill accounts & Agency Fund accounts Financial Summaries 211 Page 576 of 1094 Utilities Water $ 13,663,049 $ 15,555,421 5.61 %$ 12,647,141 6.86 %$ 2,908,280 3.17 % Sewer 23,595,640 19,711,822 7.11 % 17,765,445 9.64 % 1,946,377 2.12 % Solid Waste 5,691,794 5,812,550 2.10 % 5,812,550 3.15 % — — % Parking 2,804,730 2,906,530 1.05 % 2,906,530 1.58 % — — % Stormwater 7,469,151 7,495,147 2.70 % 6,143,147 3.33 % 1,352,000 1.47 % Landfill 6,679,087 12,389,784 4.47 % 5,709,129 3.10 % 6,680,655 7.28 % Salt Operations 131,846 140,500 0.05 % 140,500 0.08 % — — % Transit 2,717,944 1,347,823 0.49 % 449,591 0.24 % 898,232 0.98 % Subtotal 62,753,241 65,359,577 23.58 % 51,574,033 27.97 % 13,785,544 15.02 % Federal Funds Community Development 1,139,594 954,117 0.34 % 504,117 0.27 % 450,000 0.49 % HUD Lead Grant 2,577,468 4,138,529 1.49 % 2,288,529 1.24 % 1,850,000 2.02 % Federally Assisted Housing 7,207,751 8,175,010 2.95 % 8,175,010 4.43 % — — % Federal Grants - AmeriCorps 410,000 362,250 0.13 % 362,250 0.20 % — — % Federal Grants - Older Adult Home Mod — 451,526 0.16 % 451,526 0.24 % — — % Federal Grants - Law Enforcement 216,438 243,519 0.09 % 243,519 0.13 % — — % Federal CARES Act 241,148 — — % — — % — — % Federal American Rescue Plan Act 1,971,384 — — % — — % — — % Federal Assistance 4,145,948 12,345,426 4.45 % — — % 12,345,426 13.45 % Federal Transportation 758,800 — — % — — % — — % Federal Transit Authority 558,000 1,929,641 0.70 % 1,929,641 1.05 % — — % Passenger Facility Charge 181,366 179,857 0.06 % 179,857 0.10 % — — % Federal Aviation Administration 9,253,470 9,819,500 3.54 % — — % 9,819,500 10.70 % Subtotal 28,661,367 38,599,375 13.93 % 14,134,449 7.67 % 24,464,926 26.65 % State Funds State Health Grant/Lead Grant 10,000 10,000 — % 10,000 0.01 % — — % State Police Program Grant — 39,225 0.01 % 39,225 0.02 % — — % State Iowa Finance Authority 229,974 229,974 0.08 % — — % 229,974 0.25 % State Flood Mitigation 5,870,274 5,603,712 2.02 % 5,603,712 3.04 % — — % State RISE Grant 1,858,800 950,000 0.34 % — — % — — % State Transit 352,876 399,858 0.14 % 399,858 0.22 % — — % State Airport Grant 183,000 805,100 0.29 % 48,000 0.03 % 757,100 0.82 % Highway Maintenance & Trails Grants 4,064,224 11,098 — % 11,098 0.01 % — — % Road Use Tax 8,356,832 8,653,775 3.12 % 8,653,775 4.69 % — — % Industrial and Commercial State Backfill 1,395,018 1,034,421 0.37 % 1,034,421 0.56 % — — % Mobile Home Tax 59,198 60,967 0.02 % 60,967 0.03 % — — % Subtotal 22,380,196 17,798,130 6.42 % 15,861,056 8.60 % 987,074 1.08 % Local Taxes Property Tax 28,223,481 29,855,822 10.77 % 29,855,822 16.19 % — — % Hotel/Motel Tax 3,376,383 3,910,460 1.41 % 3,910,460 2.12 % — — % Monies & Credits 128,299 229,750 0.08 % 229,750 0.12 % — — % Ag Land Tax 10,276 10,388 — % 10,388 0.01 % — — % TIF Increment Property Tax 15,160,796 27,685,708 9.99 % 11,128,945 6.04 % 16,556,763 18.03 % DRA-Parimutuel Tax 657,500 591,179 0.21 % 591,179 0.32 % — — % Sales Tax-50% and 20% 8,815,080 9,220,253 3.33 % 8,852,742 4.80 % 367,511 0.40 % Sales Tax-30% 4,351,823 4,426,909 1.60 % 232,359 0.13 % 4,194,550 4.57 % SUMMARY OF HOW BUDGETED EXPENDITURES ARE FUNDED BY SOURCE OF INCOME FY25 Total Adopted Revenues FY26 Total Recomm'd Budget FY26 Recomm'd Operating Budget FY26 Recomm'd Capital Budget Revenue Type Dollars Dollars Percent Dollars Percent Dollars Percent Financial Summaries 212 Page 577 of 1094 Subtotal 60,723,638 75,930,469 27.40 % 54,811,645 29.73 % 21,118,824 23.00 % Operating Receipts Airport 5,155,617 4,974,959 1.79 % 4,974,959 2.70 % — — % Ambulance 4,494,329 4,191,888 1.51 % 4,191,888 2.27 % — — % Animal Licenses/Impoundments Fee 262,077 237,491 0.09 % 237,491 0.13 % — — % Business License/Permits 255,794 256,408 0.09 % 256,408 0.14 % — — % Cable TV 845,355 293,346 0.11 % 293,346 0.16 % — — % County Participation Comm. Center 1,136,985 1,035,675 0.37 % 1,035,675 0.56 % — — % County Payment 1,899,572 436,614 0.16 % 436,614 0.24 % — — % Dental Premium Reimbursements 255,138 209,372 0.08 % 209,372 0.11 % — Diamond Jo-Admissions 500,000 500,000 0.18 % 500,000 0.27 % — — % DRA-Equity Distribution 1,039,002 1,267,993 0.46 % 1,267,993 0.69 % — — % DRA-Gaming used for America's River Project/Parking/Fire Debt Abatement 6,711 6,849 — % 6,849 — % — — % DRA-Gaming Revenues (Lease & Slots) 7,398,868 7,206,513 2.60 % 7,206,513 3.91 % — — % DRA-Police Overtime - Security 6,000 9,162 — % 9,162 — % — — % Engineering Division incl' Riverfront Leases 4,994,613 5,173,075 1.87 % 5,173,075 2.81 % — — % Federal Building Leases 339,514 376,931 0.14 % 376,931 0.20 % — — % Golf 1,039,181 1,041,236 0.38 % 996,236 0.54 % 45,000 0.05 % Information Services Recharges 860,093 863,338 0.31 % 863,338 0.47 % — — % Inspection (Building/Health/Fire/Planning) 974,715 1,143,508 0.41 % 1,143,508 0.62 % — — % Interest Earnings-Tax Funds 1,718,055 2,300,097 0.83 % 2,300,097 1.25 % — — % Iowa District Court Fines 298,476 244,469 0.09 % 244,469 0.13 % — — % Library Receipts 46,533 50,378 0.02 % 50,378 0.03 % — — % Misc./Administration Overhead Charges 396,297 955,521 0.34 % 821,142 0.45 % 134,379 0.15 % Public Works 22,515 5,563 — % 5,563 — % — — % Park 304,402 310,689 0.11 % 310,689 0.17 % — — % Port of Dubuque Marina 264,175 272,932 0.10 % 272,932 0.15 % — — % Police 110,231 101,737 0.04 % 101,737 0.06 % — — % Recreation 607,709 587,398 0.21 % 587,398 0.32 % — — % Rental Housing 716,200 718,680 0.26 % 718,680 0.39 % — — % Utility Franchise Fees 6,903,981 6,106,745 2.20 % 6,106,745 3.31 % — — % Zoning 83,745 89,848 0.03 % 89,848 0.05 % — — % Subtotal 42,935,883 40,968,415 14.78 % 40,789,036 22.12 % 179,379 0.20 % Cash Balances Tax Funds 525,437 739,699 0.27 % 148,882 0.08 % 590,817 0.64 % Non-Enterprise Const.& Oper. Funds — — — % — — % — — % Subtotal 525,437 739,699 0.27 % 148,882 0.08 % 590,817 0.64 % Land Sales--Industrial Parks 696,000 371,500 0.13 % — — % 371,500 0.40 % Homeownership Sale Proceeds 180,000 100,000 0.04 % — — % 100,000 0.11 % Farm Land Rents 57,060 47,034 0.02 % 47,034 0.03 % — — % SRF Loans (Water Abated) 4,686,377 750,000 0.27 % — — % 750,000 0.82 % SRF Loans (Sewer Abated) 17,683,900 20,079,873 7.24 % — — % 20,079,873 21.87 % SRF Loans (Stormwater Abated Debt) — 632,643 0.23 % — — % 632,643 0.69 % G.O. Bonds (Solid Waste Abated) 873,700 220,000 0.08 % — — % 220,000 0.24 % G.O. Bonds (DICW Abated) 2,274,963 — — % — — % — % G.O. Bonds (GDTIF Abated) 9,285,000 5,500,000 1.98 % — — % 5,500,000 5.99 % G.O. Bonds (Parking-Parking Abated) — — — % — — % — — % G.O. Bonds (RUT/Sales Tax Abated) 3,257,304 2,006,560 0.72 % — — % 2,006,560 2.19 % SUMMARY OF HOW BUDGETED EXPENDITURES ARE FUNDED BY SOURCE OF INCOME FY25 Total Adopted Revenues FY26 Total Recomm'd Budget FY26 Recomm'd Operating Budget FY26 Recomm'd Capital Budget Revenue Type Dollars Dollars Percent Dollars Percent Dollars Percent Financial Summaries 213 Page 578 of 1094 Loan Repayments UDAG 7,000 7,000 — % — — % 7,000 0.01 % Econ. Dev-Loan Pool and ED 300,844 300,844 0.11 % 300,844 0.16 % — — % Washington Neighborhood 30,000 30,000 0.01 % — — % 30,000 0.03 % Homeownership 4,000 5,000 — % — — % 5,000 0.01 % Rehab/RRP 32,187 50,806 0.02 % 10,806 0.01 % 15,000 0.04 % Special Assessments 40,000 117,657 0.04 % 77,657 0.04 % 40,000 0.04 % Private Funding 1,013,737 1,690,362 0.61 % 770,753 0.42 % 919,609 1.00 % Subtotal 40,422,072 31,909,279 11.51 % 1,207,094 0.65 % 30,677,185 33.42 % Budget Less Service Funds 258,401,834 271,304,944 97.89 % 178,526,195 96.82 % 91,803,749 100.00 % Internal Service Funds 5,375,645 5,855,145 2.11 % 5,855,145 3.18 % — — % Total Budget 263,777,479 277,160,089 100.00 % 184,381,340 100.00 % 91,803,749 100.00 % SUMMARY OF HOW BUDGETED EXPENDITURES ARE FUNDED BY SOURCE OF INCOME FY25 Total Adopted Revenues FY26 Total Recomm'd Budget FY26 Recomm'd Operating Budget FY26 Recomm'd Capital Budget Revenue Type Dollars Dollars Percent Dollars Percent Dollars Percent Financial Summaries 214 Page 579 of 1094 HOW THE MONEY IS SPENT FY 2026 RECOMMENDED OPERATING BUDGET Public Safety 15% Public Works 20% Health & Social Services —% Culture & Recreation 7% Community & Econ. Dev. 10% General Government 7% Business Type 30% Debt Service 11% Public Safety Public Works Health & Social Services Culture & Recreation Community & Econ. Dev. General Government Business Type Debt Service TOTAL RECOMMENDED OPERATING BUDGET $184,381,340 * Excludes transfers and non-program expense for self-insurance, Metro Landfill accounts & Agency Fund accounts Financial Summaries 215 Page 580 of 1094 OPERATING EXPENDITURES Public Safety Police $ 16,184,519 $ 17,796,077 $ 18,827,751 $ 19,540,927 3.79 % Emergency Comm. Center 1,580,804 1,715,768 2,267,054 2,288,090 0.93 % Fire 15,147,423 15,023,078 17,423,325 17,862,495 2.52 % Disaster Services 107,047 107,477 113,047 119,476 5.69 % Health Services - Animal Control 413,797 431,284 528,410 488,294 (7.59) % Public Works - Flood Control 123,007 255,749 211,285 234,871 11.16 % Housing - Code Enforcement 1,061,968 1,192,959 1,346,840 1,290,111 (4.21) % Total Public Safety 34,618,565 36,522,392 40,717,712 41,824,264 2.72 % Debt Service (370,584) (437,104) (592,226) (945,016) 59.57 % Total Public Safety without Debt Service 34,247,981 36,085,288 40,125,486 40,879,248 1.88 % Public Works Airport 5,419,423 5,562,382 5,619,320 5,492,399 (2.26) % Public Works 7,905,977 8,122,233 8,451,987 9,218,652 9.07 % Engineering 7,413,048 8,543,874 9,020,848 9,367,947 3.85 % Total Public Works 20,738,448 22,228,489 23,092,155 24,078,998 4.27 % Debt Service (5,390,006) (6,360,074) (6,380,727) (6,352,544) (0.44) % Total Public Works without Debt Service 15,348,442 15,868,415 16,711,428 17,726,454 6.07 % Health & Social Services Office of Equity and Human Rights 339,730 257,824 462,747 344,833 (25.48) % Health Services 570,364 663,576 788,986 763,109 (3.28) % Purchase of Services 82,574 120,165 100,000 100,000 — % Total Health & Social Services 992,668 1,041,565 1,351,733 1,207,942 (10.64) % Culture & Recreation Parks 4,203,734 4,490,555 4,725,079 4,463,712 (5.53) % Ice Center 422,526 584,650 800,616 881,521 10.11 % Civic Center 1,520,666 1,211,677 1,528,442 1,434,312 (6.16) % Conference Center 583,259 898,803 1,307,853 1,201,817 (8.11) % Multicultural Family Center 341,552 416,696 519,829 499,819 (3.85) % AmeriCorps 563,484 893,744 820,533 1,020,417 24.36 % Recreation 3,240,844 3,521,945 3,992,950 4,044,637 1.29 % Library 4,161,747 4,199,503 4,504,345 4,577,187 1.62 % Economic Development-Arts & Cultural Affairs 1,040,446 495,713 476,956 480,841 0.81 % Total Culture & Recreation 16,078,258 16,713,286 18,676,603 18,604,263 (0.39) % Debt Service (462,743) (417,853) (605,969) (680,170) 12.25 % Total Culture & Rec without Debt Service 15,615,515 16,295,433 18,070,634 17,924,093 (0.81) % SUMMARY OF TOTAL EXPENDITURES BY DEPARTMENT AND STATE PROGRAM State Program / Department FY 2023 Actual FY 2024 Actual FY 2025 Adopted Budget FY 2026 Recomm'd Budget % Change from Adopted FY25 Financial Summaries 216 Page 581 of 1094 Community & Economic Development Economic Development 8,372,090 9,170,473 9,398,841 12,268,483 30.53 % Housing & Comm. Development 9,623,552 10,832,251 9,808,529 12,802,366 30.52 % Planning Services 934,547 978,070 1,050,168 1,118,620 6.52 % Office of Shared Prosperity and Neighborhood Support 379,270 446,956 511,683 555,888 8.64 % Purchase of Services — — — — — % Total Comm. & Econ. Development (CED) 19,309,459 21,427,750 20,769,221 26,745,357 28.77 % Debt Service (2,902,684) (2,989,624) (3,412,514) (4,200,241) 23.08 % Total CED without Debt Service 16,406,775 18,438,126 17,356,707 22,545,116 29.89 % General Government Engineering - Facilities Management 1,187,861 1,252,425 1,499,929 1,462,698 (2.48) % City Council 153,771 145,915 160,510 161,064 0.35 % Human Resources 1,351,631 1,769,662 1,849,895 1,877,929 1.52 % Communications Office 887,561 1,210,048 1,351,607 1,350,463 (0.08) % City Manager's Office 1,778,249 1,865,471 2,000,302 2,047,931 2.38 % City Clerk 452,376 511,323 539,793 620,808 15.01 % Finance 3,941,235 5,518,594 4,795,674 5,071,771 5.76 % City Attorney 1,033,318 1,250,019 1,106,218 1,181,461 6.80 % Information Services 1,666,551 2,151,127 2,698,188 2,916,984 8.11 % Total General Government 12,452,553 15,674,584 16,002,116 16,691,109 4.31 % Debt Service — (248,367) (249,606) (246,229) (1.35) % Total General Government without Debt Service 12,452,553 15,426,217 15,752,510 16,444,880 4.40 % Business Type Parks - Stormwater 134,163 112,288 165,670 262,807 58.63 % Public Information Office - Stormwater 1,111 12,370 49,865 59,405 19.13 % Water 8,889,440 8,165,585 10,402,438 10,256,398 (1.40) % Water Resource & Recovery Center 11,018,502 10,607,668 13,357,435 13,999,620 4.81 % Parking Division 4,618,291 4,524,501 5,065,663 4,947,213 (2.34) % Transit 6,485,622 4,662,226 5,103,279 5,190,024 1.70 % Public Works- Solid Waste & Landfill 7,147,366 8,573,659 8,915,704 9,006,381 1.02 % Public Works- Salt Operations 75,756 172,076 131,846 140,500 6.56 % Public Works- Water 2,482 133,128 — — — % Public Works- Garage Service 3,140,231 3,771,659 2,996,941 3,539,719 18.11 % Public Works- Sewer/Stormwater Maint. 1,009,279 1,008,637 1,171,527 1,132,572 (3.33) % Engineering - Sewer/Stormwater Improv. 4,389,173 4,115,825 4,722,770 4,491,694 (4.89) % Engineering - Water 56,268 61,194 64,109 68,658 7.10 % Engineering - Parking 1,269 3,195 5,934 6,188 4.28 % Parks - Service Fund — 2,108 143,508 152,694 6.40 % Engineering - Service Fund 1,440 122,422 1,893,465 1,975,534 4.33 % Total Business Type 46,970,393 46,048,541 54,190,154 55,229,407 1.92 % Debt Service (14,334,841) (14,243,027) (15,538,139) (16,911,866) 8.84 % SUMMARY OF TOTAL EXPENDITURES BY DEPARTMENT AND STATE PROGRAM State Program / Department FY 2023 Actual FY 2024 Actual FY 2025 Adopted Budget FY 2026 Recomm'd Budget % Change from Adopted FY25 Financial Summaries 217 Page 582 of 1094 Total Business Type without Debt Service 32,635,552 31,805,514 38,652,015 38,317,541 (0.87) % Total Expenditures without Debt 127,699,486 134,960,558 148,020,513 155,045,274 4.75 % Total Debt Service 23,460,858 24,696,049 26,779,181 29,336,066 9.55 % TOTAL OPERATING EXPENDITURES 151,160,344 159,656,607 174,799,694 184,381,340 5.48 % Capital Improvement Projects (CIP) Public Safety 721,239 1,536,885 5,756,918 501,060 (91.30) % Public Works 19,571,563 18,926,531 38,455,226 36,642,484 (4.71) % Health and Social Services 20,000 20,000 — — — % Culture & Recreation 6,136,656 1,626,686 660,000 2,596,611 293.43 % Community & Economic Development 3,704,098 5,349,635 5,634,321 4,503,043 (20.08) % General Government 600,641 4,150,906 4,090,031 4,061,542 (0.70) % Business Type 7,291,960 7,838,826 34,157,329 43,499,009 27.35 % TOTAL CIP EXPENDITURES 38,046,157 39,449,469 88,753,825 91,803,749 3.44 % Total Expenditures Before Transfers 189,206,501 199,106,076 263,553,519 276,185,089 4.79 % Interfund Transfers 27,745,983 37,335,362 40,357,689 45,969,433 13.91 % Grand Total Expenditures $ 216,952,484 $ 236,441,438 $ 303,911,208 $ 322,154,522 6.00 % SUMMARY OF TOTAL EXPENDITURES BY DEPARTMENT AND STATE PROGRAM State Program / Department FY 2023 Actual FY 2024 Actual FY 2025 Adopted Budget FY 2026 Recomm'd Budget % Change from Adopted FY25 * Excludes non-program expense for self-insurance, Metro Landfill accounts & Agency Fund accounts Financial Summaries 218 Page 583 of 1094 PROGRAM EXPENSE * EMPLOYEE EXPENSE $ 67,333,568 $ 72,166,247 $ 82,014,700 $ 84,539,599 3.08 % SUPPLIES & SERVICES 53,634,584 55,744,202 58,333,825 63,945,158 9.62 % CAPITAL OUTLAY 4,709,715 4,752,938 6,402,513 4,594,642 -28.24 % SUBTOTAL 125,677,867 132,663,387 146,751,038 153,079,399 4.31 % DEBT SERVICE 23,692,147 24,696,050 26,779,181 29,336,066 9.55 % NON-EXPENSE ACCOUNTS 1,646,816 2,260,901 1,269,474 1,965,875 54.86 % TOTAL OPERATING BUDGET 151,016,830 159,620,338 174,799,693 184,381,340 5.48 % CAPITAL IMPROVEMENTS 38,495,575 39,449,469 88,753,825 91,803,749 3.44 % TOTAL BUDGET $ 189,512,405 $ 199,069,807 $ 263,553,518 $ 276,185,089 4.79 % * Excludes transfers and non-program expense for self-insurance, Metro Landfill accounts & Agency Fund accounts OPERATING EXPENDITURES BY FUND 100 GENERAL FUND $ 75,183,860 $ 80,839,126 $ 88,393,371 $ 91,161,683 3.13 % 104 CABLE TV FUND — 155,325 19,200 26,800 39.58 % 112 TRUST & AGENCY FUND 1,574 1,105 — — — % 160 DOWNTOWN LOAN POOL 300,000 — — — — % 125 TIF- DICW 1,340,428 1,465,149 1,459,748 2,610,263 78.82 % 129 TIF-N CASCADE HOUSING — — — 1,674 — % 130 TIF- ENGLISH RIDGE — — — 23,448 — % 131 TIF - SOUTH POINTE 88,270 24,435 119,643 31,373 -73.78 % 132 TIF - RUSTIC POINT 23,846 22,993 54,672 67,164 22.85 % 134 TIF - N GRANDVIEW — — — 1,673 — % 135 TIF - RADFORD — — — 6,667 — % 136 TIF - JFK — — — 5,766 — % 127 TIF-TECH PARK SOUTH — 36,464 39,073 47,176 20.74 % 128 TIF-LAKE RIDGE 19,341 19,360 19,360 — — % 126 TIF-GREATER DOWNTOWN 1,170,838 1,578,089 1,299,741 2,021,616 55.54 % 110 ROAD USE TAX FUND 7,371,570 7,908,284 8,200,257 8,588,462 4.73 % 180 COMM DEVEL FUND 692,468 555,960 546,042 504,117 -7.68 % 167 GUARDIAN ANGEL 823 1,181 — — — % 168 OLDER ADULT HOME MOD 182,416 115,321 138,995 451,526 224.85 % 189 LEAD GRANT PROGRAM 1,313,769 1,521,445 693,265 2,288,529 230.11 % 189 SECTION 8 HOUSING FD 6,416,087 7,694,896 7,360,495 8,406,337 14.21 % 190 CABLE TV FUND 586,814 616,864 842,555 293,346 -65.18 % 169 VETERANS MEMORIAL 11,197 12,817 19,384 19,180 -1.05 % 170 LIBRARY GIFTS TR FD 107,341 113,522 30,097 38,789 28.88 % 171 STYLEMASTER/CANINE 58 75 59 76 28.81 % 172 POLICE EVIDENCE 18,127 292,116 — — — % 305 GENERAL CONST FD 179 — — — — % 310 DOCK DEPRECIATION FD — 105,386 — — — % 200 DEBT SERVICE FUND 9,357,305 10,453,022 11,241,042 12,424,200 10.53 % 500 ELLA LYONS PEONY TR 3,640 — 4,000 4,000 — % CITY OF DUBUQUE FY 2026 GRAND TOTAL EXPENDITURE SUMMARIES FY 2023 Actual FY 2024 Actual FY 2025 Adopted Budget FY 2026 Recomm'd Budget % Change from Adopted FY25 Financial Summaries 219 Page 584 of 1094 501 LIBRARY PERMANENT TR 275 — 275 — % 690 TRANSIT FUND 4,207,232 4,609,313 5,039,373 5,121,554 1.63 % 692 INTERMODAL RAMP FUND 49,996 52,913 63,906 68,470 7.14 % 610 SEWAGE UTIL-OPER FD 12,169,662 11,635,477 14,675,688 15,403,347 4.96 % 620 STORMWATER UTILITY 4,381,455 4,208,941 4,741,714 4,483,346 -5.45 % 650 PARKING FAC-OPER FD 4,619,623 4,529,308 5,071,597 4,953,401 -2.33 % 600 WATER UTIL-OPER FUND 8,948,189 8,353,853 10,466,547 10,325,056 -1.35 % 670 SOLID WASTE COLLECTION 4,244,426 3,995,271 3,773,749 3,943,729 4.50 % 605 SALT OPERATIONS 75,756 172,076 131,846 140,500 6.56 % 810 ENGINEERING SERV FD 3,325 136,900 2,212,718 2,315,426 4.64 % 811 GARAGE SERVICE FUND 3,140,231 3,771,659 2,996,941 3,539,719 18.11 % 813 STORES/PRINTING FUND (4,220) 43,029 2,661 — — % 950 LANDFILL OPER FUND 4,991,204 4,578,388 5,141,955 5,062,652 -1.54 % TOTAL OPERATING BUDGET 151,016,830 159,620,338 174,799,694 184,381,340 5.48 % CAPITAL EXPENDITURES BY FUND 100 GENERAL FUND 3,293,540 8,188,509 3,060,000 320,817 -89.52 % 160 TAX INCRE-DOWNTOWN LOAN 50,928 675,000 — — — % 110 ROAD USE TAX FUND 1,603,487 420,020 89,543 — — % 180 COMM DEVEL FUND 1,638,585 1,555,967 593,552 450,000 -24.19 % 181 CARES ACT FUND 226,379 — — — — % 183 HUD RESILIENCY FUND 56 — — — — % 184 UDAG REPAYMENTS — 150,000 7,000 7,000 — % 185 HOUSING TRUST FUND 249,190 157,351 317,474 317,474 — % 168 OLDER ADULT HOME 14,900 107,440 278,690 — — % 186 STATE RENTAL REHAB 28,851 204,810 20,000 15,000 -25.00 % 188 LEAD PAINT GRANT — 191,864 1,603,500 1,850,000 15.37 % 190 CABLE TV 5,788 2,066 2,800 — — % 301 STREET CONST FUND 12,609,602 6,741,112 6,013,814 7,154,929 18.97 % 303 SALES TAX INCREMENT 2,092,945 398,094 4,370,948 — — % 304 SALES TAX CONSTR. FD 5,919,325 5,427,349 3,716,213 3,159,763 -14.97 % 305 GENERAL CONSTR FUND 2,872,006 3,243,432 24,209,106 23,325,257 -3.65 % 306 GOLF CONSTRUCTION FD 3,400 — 10,000 45,000 350.00 % 308 AIRPORT CONST FUND 899,505 4,581,498 10,303,856 11,659,500 13.16 % 691 TRANSIT FUND 169,954 7,034 966,933 898,232 -7.11 % 671 REFUSE COLLECTION FD 19,232 162,164 1,116,643 220,000 -80.30 % 611 SAN-SEWER CONST FD 1,879,888 1,734,739 24,377,460 22,026,250 -9.65 % 621 STORM SEWER CONST FD 2,087,735 1,520,545 744,828 9,927,585 1,232.87 % 651 PARKING FAC CONST FD 95,545 40,406 86,282 88,007 2.00 % 601 WATER CONST FUND 2,299,217 2,772,629 5,758,977 3,658,280 -36.48 % 811 GARAGE SERVICE FUND 6,431 213,070 165,986 — — % 950 LANDFILL OPER FUND 429,086 954,368 940,220 6,680,655 610.54 % TOTAL CAPITAL BUDGET 38,495,575 39,449,467 88,753,825 91,803,749 3.44 % TOTAL BUDGET (excl' transfers)$ 189,512,405 $ 199,069,805 $ 263,553,519 $ 276,185,089 4.79 % CITY OF DUBUQUE FY 2026 GRAND TOTAL EXPENDITURE SUMMARIES FY 2023 Actual FY 2024 Actual FY 2025 Adopted Budget FY 2026 Recomm'd Budget % Change from Adopted FY25 Financial Summaries 220 Page 585 of 1094 CITY OF DUBUQUE FISCAL YEAR 2026 RECOMMENDED BUDGET BY MAJOR CATEGORIES AND DEPARTMENT & CAPITAL BUDGET BY DEPARTMENT DEPARTMENT/DIVISION EMPLOYEE EXPENSE SUPPLIES & SERVICES CAPITAL OUTLAY NON-EXP ACCOUNTS SUBTOTAL OPERATING DEBT SERVICE TOTAL BUDGET Police Department $ 16,097,817 $ 2,868,707 $ 552,603 $ — $ 19,519,127 $ 21,800 $ 19,540,927 Emergency Communications 2,135,130 134,788 3,200 — 2,273,118 14,972 2,288,090 Fire Department 13,966,001 2,691,600 296,650 — 16,954,251 908,244 17,862,495 Emergency Management — 119,476 — — 119,476 — 119,476 Office of Equity and Human Rights 276,339 67,694 800 — 344,833 — 344,833 Health Services 836,618 410,195 4,590 — 1,251,403 — 1,251,403 Multicultural Family Center 406,974 91,245 1,600 — 499,819 — 499,819 Park Division 3,250,371 1,290,534 219,333 — 4,760,238 118,975 4,879,213 AmeriCorps 891,957 87,860 10,600 30,000 1,020,417 — 1,020,417 Ice Center — 400,984 9,700 — 410,684 470,837 881,521 Civic Center Division 32,025 1,150,249 209,890 — 1,392,164 42,148 1,434,312 Grand River Center 32,025 932,321 209,450 — 1,173,796 28,021 1,201,817 Recreation Division 2,582,974 1,395,955 64,550 — 4,043,479 1,158 4,044,637 Library Department 3,178,920 1,318,638 60,598 — 4,558,156 19,031 4,577,187 Water Department 2,834,815 3,603,477 496,650 — 6,934,942 3,321,456 10,256,398 Water & Resource Recovery Center 2,051,103 4,544,945 72,200 — 6,668,248 7,331,372 13,999,620 Parking Division 907,552 1,203,441 72,800 — 2,183,793 2,763,420 4,947,213 Airport 1,896,881 2,988,453 298,600 — 5,183,934 308,465 5,492,399 Transit Division 3,161,888 1,569,629 109,613 — 4,841,130 348,894 5,190,024 Public Works 9,807,349 10,165,986 523,089 1,943,746 22,440,170 832,525 23,272,695 Engineering 4,835,704 2,974,385 1,204,352 — 9,014,441 8,358,278 17,372,719 Economic Development 598,082 7,944,507 6,494 — 8,549,083 4,200,241 12,749,324 Housing & Community Dev 4,011,417 10,073,360 7,700 — 14,092,477 — 14,092,477 Planning Services 978,801 139,319 500 — 1,118,620 — 1,118,620 Human Resources 1,232,222 644,107 1,600 — 1,877,929 — 1,877,929 Office of Shared Prosperity and Neighborhood Support 489,771 65,717 400 — 555,888 — 555,888 Communications Office 961,954 377,960 69,954 — 1,409,868 — 1,409,868 City Council 90,427 70,237 400 — 161,064 — 161,064 City Manager's Office 1,439,837 606,294 1,800 — 2,047,931 — 2,047,931 City Clerk's Office 433,028 187,530 250 — 620,808 — 620,808 Finance 2,675,048 2,113,986 44,379 (7,871) 4,825,542 246,229 5,071,771 City Attorney 907,284 271,677 2,500 — 1,181,461 — 1,181,461 Information Services 1,539,285 1,339,902 37,797 — 2,916,984 — 2,916,984 Purchase of Services — 100,000 — — 100,000 — 100,000 TOTAL DEPTS/DIVISIONS $ 84,539,599 $ 63,945,158 $ 4,594,642 $ 1,965,875 $ 155,045,274 $ 29,336,066 $ 184,381,340 Financial Summaries 221 Page 586 of 1094 General Police Department $ 16,097,817 $ 2,868,631 $ 552,603 $ — $ — $ 19,519,051 Emergency Communications 2,135,130 134,788 3,200 — — 2,273,118 Fire Department 13,966,001 2,691,600 296,650 — — 16,954,251 Emergency Management — 119,476 — — — 119,476 Office of Equity and Human Rights 276,339 67,694 800 — — 344,833 Health Services 836,618 410,195 4,590 — — 1,251,403 Multicultural Family Center 406,974 91,245 1,600 — — 499,819 Parks Division 2,908,175 1,198,239 215,143 — — 4,321,557 AmeriCorps 891,957 87,860 10,600 — 30,000 1,020,417 Ice Center — 400,984 9,700 — — 410,684 Civic Center Division 32,025 1,150,249 209,890 — — 1,392,164 Grand River Center 32,025 932,321 209,450 — — 1,173,796 Recreation Division 2,513,172 1,361,286 64,550 — — 3,939,008 Library Department 3,178,920 1,279,574 60,598 — — 4,519,092 Airport Department 1,896,881 2,988,453 298,600 — — 5,183,934 Public Works Department 1,438,840 934,611 81,514 — (854,824) 1,600,141 Engineering Department 2,153,563 1,709,233 188,690 — — 4,051,486 Economic Development 598,082 3,127,687 6,494 — — 3,732,263 Housing & Community Dev 1,993,786 426,670 6,900 — — 2,427,356 Planning Services 978,801 130,609 500 — — 1,109,910 Human Resources 1,232,222 644,107 1,600 — — 1,877,929 Office of Shared Prosperity and Neighborhood Support 489,771 65,717 400 — — 555,888 Communications Office 902,799 127,118 400 — — 1,030,317 City Council 90,427 70,237 400 — — 161,064 City Manager's Office 1,439,837 606,294 1,800 — — 2,047,931 City Clerk's Office 433,028 187,530 250 — — 620,808 Finance 2,675,048 2,106,115 44,379 — — 4,825,542 City Attorney 907,284 271,677 2,500 — — 1,181,461 Information Technology 1,539,285 1,339,902 37,797 — — 2,916,984 Purchase of Services — 100,000 — — — 100,000 Total, General Fund 62,044,807 27,630,102 2,311,598 — (824,824) 91,161,683 Transit Transit Division 3,161,888 1,501,159 109,613 348,894 — 5,121,554 Total, Transit Fund 3,161,888 1,501,159 109,613 348,894 — 5,121,554 Cable Equip Communications Office — — 26,800 — — 26,800 Total, Cable Equip Fund — — 26,800 — — 26,800 CITY OF DUBUQUE FISCAL YEAR 2026 RECOMMENDED BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT FUND DEPARTMENT/DIVISION EMPLOYEE EXPENSE SUPPLIES & SERVICES CAPITAL OUTLAY DEBT SERVICE NON-EXP ACCOUNTS TOTAL Financial Summaries 222 Page 587 of 1094 Intermodal Ramp Transit Division — 68,470 — — — 68,470 Total, Transit Fund — 68,470 — — — 68,470 Debt Service Police Department — — — 21,800 — 21,800 Emergency Communications — — — 14,972 — 14,972 Fire Department — — — 908,244 — 908,244 Park Division — — — 118,975 — 118,975 Ice Center — — — 470,837 — 470,837 Civic Center Division — — — 42,148 — 42,148 Grand River Center — — — 28,021 — 28,021 Recreation Division — — — 1,158 — 1,158 Library Department — — — 19,031 — 19,031 Airport Department — — — 308,465 — 308,465 Public Works Department — — — 83,878 — 83,878 Engineering Department — — — 5,960,201 — 5,960,201 Economic Development — — — 4,200,241 — 4,200,241 Finance — — — 246,229 — 246,229 Total, Debt Service Fund — — — 12,424,200 — 12,424,200 Tax Increment Economic Development — 4,816,820 — — — 4,816,820 Total, Tax Increment Funds — 4,816,820 — — — 4,816,820 Road Use Tax Public Works Department 2,998,340 4,108,882 276,047 — 386,235 7,769,504 Engineering Department 107 256,339 562,512 — — 818,958 Total, Road Use Tax Fund 2,998,447 4,365,221 838,559 — 386,235 8,588,462 Community Development Recreation Division 69,802 34,669 — — — 104,471 Housing & Community Dev 344,505 46,431 — — — 390,936 Planning Services — 8,710 — — — 8,710 Total, Comm. Dev. Fund 414,307 89,810 — — — 504,117 Older Adult Home Mod Housing & Community Dev 99,923 351,603 — — — 451,526 Total, Circles Donations 99,923 351,603 — — — 451,526 Lead Paint Grant Housing & Community Dev 520,986 1,767,543 — — — 2,288,529 Total, Lead Paint Grant 520,986 1,767,543 — — — 2,288,529 CITY OF DUBUQUE FISCAL YEAR 2026 RECOMMENDED BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT FUND DEPARTMENT/DIVISION EMPLOYEE EXPENSE SUPPLIES & SERVICES CAPITAL OUTLAY DEBT SERVICE NON-EXP ACCOUNTS TOTAL Financial Summaries 223 Page 588 of 1094 Section 8 Housing Housing & Community Dev 924,424 7,481,113 800 — — 8,406,337 Total, Section 8 Housing Fund 924,424 7,481,113 800 — — 8,406,337 Veterans Memorial Parks Division — 18,290 890 — — 19,180 Total, Veterans Memorial Fund — 18,290 890 — — 19,180 Stylemaster Trust Police Department — 76 — — — 76 Total Stylemaster Trust — 76 — — — 76 Water Operating Water Department 2,834,815 3,603,477 496,650 3,321,456 — 10,256,398 Engineering Department - One Calls 65,408 250 3,000 — — 68,658 Total, Water Operating Fund 2,900,223 3,603,727 499,650 3,321,456 — 10,325,056 Sewer Operating Water & Resource Recovery Center 2,051,103 4,544,945 72,200 7,331,372 — 13,999,620 Public Works Department 479,009 261,988 15,800 — 42,474 799,271 Engineering Department 254,984 83,402 266,070 — — 604,456 Total, Sewer Operating Fund 2,785,096 4,890,335 354,070 7,331,372 42,474 15,403,347 Solid Waste Operating Public Works Department 2,073,965 1,525,192 126,256 85,682 132,634 3,943,729 Total, Solid Waste Oper. Fund 2,073,965 1,525,192 126,256 85,682 132,634 3,943,729 Salt Operations Public Works Department 1,400 130,798 — — 8,302 140,500 Total, Salt Operations 1,400 130,798 — — 8,302 140,500 Stormwater Operating Park Division 189,502 70,005 3,300 — — 262,807 Public Works Department 197,173 105,644 5,000 — 25,484 333,301 Engineering Department 379,920 925,161 184,080 2,398,077 — 3,887,238 Total, Stormwater Operating 766,595 1,100,810 192,380 2,398,077 25,484 4,483,346 Landfill DMASWA Public Works Department 1,427,039 2,819,679 11,686 662,965 141,283 5,062,652 Total, Landfill Operating Fund 1,427,039 2,819,679 11,686 662,965 141,283 5,062,652 CITY OF DUBUQUE FISCAL YEAR 2026 RECOMMENDED BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT FUND DEPARTMENT/DIVISION EMPLOYEE EXPENSE SUPPLIES & SERVICES CAPITAL OUTLAY DEBT SERVICE NON-EXP ACCOUNTS TOTAL Financial Summaries 224 Page 589 of 1094 Parking Operating Parking Division 907,552 1,203,441 72,800 2,763,420 — 4,947,213 Engineering Department 6,188 — — — — 6,188 Total, Parking Operating Fund 913,740 1,203,441 72,800 2,763,420 — 4,953,401 Cable TV Communications Office — 250,592 42,754 — — 293,346 Total, Cable TV Fund — 250,592 42,754 — — 293,346 Expendable Library Gifts Library Department — 38,789 — — — 38,789 Total, Expendable Library Gifts — 38,789 — — — 38,789 Permanent Library Gift Trust — 275 — — — 275 Permanent Park Division-Lyons Peony Trust — 4,000 — — — 4,000 Total, Permanent Funds — 4,275 — — — 4,275 Internal Service Funds Engineering Department 1,975,534 — — — — 1,975,534 Communications Office 59,155 250 — — — 59,405 Parks 152,694 — — — — 152,694 Housing 127,793 — — — — 127,793 Finance — — — — — — Public Works Department 1,191,583 279,192 6,786 — 2,062,158 3,539,719 Total, Service Fund 3,506,759 279,442 6,786 — 2,062,158 5,855,145 TOTAL OPERATING BUDGET (excl' transfers)$ 84,539,599 $ 63,937,287 $ 4,594,642 $ 29,336,066 $ 1,973,746 $ 184,381,340 CITY OF DUBUQUE FISCAL YEAR 2026 RECOMMENDED BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT FUND DEPARTMENT/DIVISION EMPLOYEE EXPENSE SUPPLIES & SERVICES CAPITAL OUTLAY DEBT SERVICE NON-EXP ACCOUNTS TOTAL Financial Summaries 225 Page 590 of 1094 PLUS PLUS PLUS LESS BEG.INCOME TRANSFERS PROPERTY ENDING FUND BALANCE NOT TAXES IN TAX BALANCE GENERAL General $ 23,504,637 $ 53,271,980 $ 15,181,266 $ 23,065,085 $ 22,724,938 Cable PEG $ 1,260,399 $ 72,257 $ — $ — $ 1,305,856 Tort Liability 16,822 16,242 — 1,549,924 16,822 SUBTOTAL,General Funds 23,538,281 53,304,464 15,181,266 26,164,933 22,758,582 SPECIAL REVENUE Road Use Tax Fund 979,708 8,778,802 — — 1,104,735 Tax Increment & Reserve 1,792,553 20,606,163 — — 2,464,342 Trust & Agency 40,078 79,936 — 3,033,701 40,078 Special Assessments 605 121,628 — — 82,233 UDAG Repayments 183,641 — — — 176,641 Community Development (55,396) 1,130,403 — — 120,890 Customer Facility Charge 266,965 30,878 — — 297,843 Older Adult Home Modification — 451,526 — — — Lead Grant Program — 4,138,529 — — — Housing Trust Fund — 259,974 57,500 — — RRP Repayments 7,123 22,877 — — 15,000 Section 8 975,108 8,295,712 231,327 — 1,095,810 Cable TV and Equipment Fund — 361,221 — — 67,875 Veteran's Memorial Fund — 48,946 — — 29,766 Expendable Police Gifts 8,493 347 — — 8,764 Expendable Library Gifts Trust 1,135,566 122,593 — — 1,219,370 SUBTOTAL,Special Revenue 5,334,444 44,449,535 288,827 3,033,701 6,723,349 G.O. DEBT SERVICE — 866,510 11,271,820 285,870 — SUBTOTAL, G.O. Debt — 866,510 11,271,820 285,870 — PERMANENT Library Gifts Trust 19,066 766 — — 19,557 E.B.Lyons Peony Trust 89,668 6,991 — — 92,659 SUBTOTAL, Trust Funds 108,734 7,757 — — 112,216 CAPITAL PROJECT Street Construction — 7,612,590 — — 225,302 Sales Tax Increment 2,307,058 7,631,214 — — 4,334,560 Sales Tax Construction 19,813 5,622,124 — — — Passenger Facility Charge 142,773 2,859 — — (34,225) Airport Construction — 11,595,601 82,400 — 18,501 Golf Construction 58,518 — — — 13,518 General Construction Fund 8,430,768 6,505,795 8,388,694 — — SUBTOTAL, Construction Funds 10,958,929 38,970,183 8,471,094 — 4,557,655 CITY OF DUBUQUE FUND BALANCE, INCOME AND EXPENSE SUMMARY FISCAL YEAR 2026 RECOMMENDED BUDGET Financial Summaries 226 Page 591 of 1094 CITY OF DUBUQUE FUND BALANCE, INCOME AND EXPENSE SUMMARY FISCAL YEAR 2026 RECOMMENDED BUDGET LESS REQUIREMENTS TRANSFERS TOTAL OPERATING CAPITAL FUND OUT BUDGET BUDGET BUDGET GENERAL General 815,530 91,482,500 91,161,683 320,817 Cable PEG — 26,800 26,800 — Tort Liability 1,566,166 — — — SUBTOTAL,General Funds * 2,381,696 91,509,300 91,188,483 320,817 SPECIAL REVENUE Road Use Tax Fund 65,313 8,588,462 8,588,462 — Tax Increment & Reserve 15,117,554 4,816,820 4,816,820 — Trust & Agency 3,113,637 — — — Special Assessments 40,000 — — — UDAG Repayments — 7,000 — 7,000 Community Development — 954,117 504,117 450,000 Customer Facility Charge — — — — Older Adult Home Modification — 451,526 451,526 — Lead Grant Program — 4,138,529 2,288,529 1,850,000 Housing Trust Fund — 317,474 — 317,474 RRP Repayments — 15,000 — 15,000 Section 8 — 8,406,337 8,406,337 — Cable TV and Equipment Fund — 293,346 293,346 — Veteran's Memorial Fund — 19,180 19,180 — Expendable Police Gifts — 76 76 — Expendable Library Gifts Trust — 38,789 38,789 — SUBTOTAL,Special Revenue 18,336,504 28,046,656 25,407,182 2,639,474 G.O. DEBT SERVICE — 12,424,200 12,424,200 — SUBTOTAL, G.O. Debt — 12,424,200 12,424,200 — PERMANENT Library Gifts Trust — 275 275 — E.B.Lyons Peony Trust — 4,000 4,000 — SUBTOTAL, Trust Funds — 4,000 4,000 — CAPITAL PROJECT Street Construction 232,359 7,154,929 — 7,154,929 Sales Tax Increment 5,603,712 — — — Sales Tax Construction 2,482,174 3,159,763 — 3,159,763 Passenger Facility Charge 179,857 — — — Airport Construction — 11,659,500 — 11,659,500 Golf Construction — 45,000 — 45,000 General Construction Fund — 23,325,257 — 23,325,257 SUBTOTAL, Construction Funds 8,498,102 45,344,449 — 45,344,449 Financial Summaries 227 Page 592 of 1094 CITY OF DUBUQUE FUND BALANCE, INCOME AND EXPENSE SUMMARY FISCAL YEAR 2026 RECOMMENDED BUDGET PLUS PLUS PLUS LESS BEG.INCOME TRANSFERS PROPERTY ENDING FUND BALANCE NOT TAXES IN TAX BALANCE UTILITY/ENTERPRISE Transit 4,000,069 2,227,022 483,598 1,927,336 2,618,239 Intermodal Ramp 144,070 148,682 — — 224,282 Sewer Operating 1,195,949 19,718,722 — — 802,226 San. Sewer Construction 2,674,477 20,178,463 2,300,000 — 3,126,690 Stormwater Operating 3,833,255 7,252,003 530,009 — 3,762,111 Stormwater Construction 172,000 8,575,585 1,180,000 — — Parking Operating 684,278 2,914,456 2,412,375 — 692,204 Parking Construction 728,968 142,246 — — 783,207 Water Operating 9,626,241 13,944,172 — — 9,387,272 Water Construction 1,332,731 825,549 1,500,000 — — Solid Waste 277,927 5,762,623 — — — Salt Operations 70,330 141,029 — — 70,859 Landfill 12,381,161 8,623 — — — T&A-Self Insurance Reserves 7,854,376 — — — 7,854,376 Service Fund Charges 24,047 5,855,145 — — 24,047 SUBTOTAL, Utility Enterprise Fund 44,999,881 87,694,320 8,405,982 1,927,336 29,345,515 TOTAL ALL FUNDS $ 86,183,845 $ 225,348,784 $ 43,618,989 $ 29,861,916 $ 64,786,348 Financial Summaries 228 Page 593 of 1094 CITY OF DUBUQUE FUND BALANCE, INCOME AND EXPENSE SUMMARY FISCAL YEAR 2026 RECOMMENDED BUDGET LESS REQUIREMENTS TRANSFERS TOTAL OPERATING CAPITAL FUND OUT BUDGET BUDGET BUDGET UTILITY/ENTERPRISE Transit $ — $ 6,019,786 $ 5,121,554 $ 898,232 Intermodal Ramp — 68,470 68,470 — Sewer Operating 4,709,098 15,403,347 15,403,347 — San. Sewer Construction — 22,026,250 — 22,026,250 Stormwater Operating 3,369,810 4,483,346 4,483,346 — Stormwater Construction — 9,927,585 — 9,927,585 Parking Operating 365,504 4,953,401 4,953,401 — Parking Construction — 88,007 — 88,007 Water Operating 3,858,085 10,325,056 10,325,056 — Water Construction — 3,658,280 — 3,658,280 Solid Waste 1,876,821 4,163,729 3,943,729 220,000 Salt Operations — 140,500 140,500 — Landfill 646,477 11,743,307 5,062,652 6,680,655 T&A-Self Insurance Reserves — — — — Service Fund Charges — 5,855,145 5,855,145 — Fund 14,825,795 98,856,209 55,357,200 43,499,009 TOTAL ALL FUNDS $ 44,042,097 $ 276,185,089 $ 184,381,340 $ 91,803,749 Financial Summaries 229 Page 594 of 1094 General (1)$ 23,504,637 $ 91,518,331 $ 92,298,030 $ 22,724,938 (3) %$ (779,699) Tort Liability 16,822 1,566,166 1,566,166 16,822 — % — Cable PEG 1,260,399 72,257 26,800 1,305,856 4 % 45,457 Trust and Agency 40,078 3,113,637 3,113,637 40,078 — % — Tax Increment & Reserve (2) 1,792,553 20,606,163 19,934,374 2,464,342 37 % 671,789 Sales Tax Increment (1) 2,307,058 7,631,214 5,603,712 4,334,560 88 % 2,027,502 Road Use Tax Fund (1) 979,708 8,778,802 8,653,775 1,104,735 13 % 125,027 Special Assessment 605 121,628 40,000 82,233 13483 % 81,628 Community Development (1) (55,396) 1,130,403 954,117 120,890 (318) % 176,286 UDAG Repayments (3) 183,641 — 7,000 176,641 (4) % (7,000) State Rental Rehab 7,123 22,877 15,000 15,000 111 % 7,877 Housing Trust Fund — 317,474 317,474 — — % — Older Adult Home Modification — 451,526 451,526 — — % — Section 8 Housing (4) 975,108 8,527,039 8,406,337 1,095,810 12 % 120,702 Lead Grant Program — 4,138,529 4,138,529 — — % — Cable TV & Equipment Fund (5) — 361,221 293,346 67,875 (52211538) % 67,875 Veteran's Memorial Fund (15) — 48,946 19,180 29,766 (6201250) % 29,766 Expendable Police Gift Trusts (14) 8,493 347 76 8,764 3 % 271 Expendable Library Gift Trusts (6) 1,135,566 122,593 38,789 1,219,370 7 % 83,804 G.O. Debt Service — 12,424,200 12,424,200 — — % — Street Construction (1) — 7,612,590 7,387,288 225,302 50067111 % 225,302 Sales Tax Construction (1) 19,813 5,622,124 5,641,937 — — % (19,813) GO Bond Fund — — — — — % — General Construction (1) 8,430,768 14,894,489 23,325,257 — (100) % (8,430,768) Golf Construction (1) 58,518 — 45,000 13,518 (77) % (45,000) Airport Construction — 11,678,001 11,659,500 18,501 (6167000) % 18,501 Passenger Facility (12) 142,773 2,859 179,857 (34,225) (124) % (176,998) Customer Facility (13) 266,965 30,878 — 297,843 12 % 30,878 Lyons Peony Trust 89,668 6,991 4,000 92,659 3 % 2,991 Library Gift Trusts 19,066 766 275 19,557 3 % 491 Transit 4,000,069 4,637,956 6,019,786 2,618,239 (35) % (1,381,830) Intermodal 144,070 148,682 68,470 224,282 56 % 80,212 Sewage Facility Operation (7) 1,195,949 19,718,722 20,112,445 802,226 (33) % (393,723) Stormwater Operating (8) 3,833,255 7,782,012 7,853,156 3,762,111 (2) % (71,144) Parking Operation (7) 684,278 5,326,831 5,318,905 692,204 1 % 7,926 Water Utility Operation (1) 9,626,241 13,944,172 14,183,141 9,387,272 (2) % (238,969) Refuse Collection (9) 277,927 5,762,623 6,040,550 — (100) % (277,927) Salt Operations (11) 70,330 141,029 140,500 70,859 1 % 529 Sanitary Sewer Construction (1) 2,674,477 22,478,463 22,026,250 3,126,690 17 % 452,213 Stormwater Construction (1) 172,000 9,755,585 9,927,585 — (100) % (172,000) Parking Facility Construction (1) 728,968 142,246 88,007 783,207 7 % 54,239 Water Construction (1) 1,332,731 2,325,549 3,658,280 — (100) % (1,332,731) CITY OF DUBUQUE FUND BALANCE CHANGES FUND BEGINNING BALANCE REVENUES EXPENDITURES ENDING BALANCE CHANGE IN FUND BALANCE DOLLAR CHANGE IN FUND BALANCE Financial Summaries 230 Page 595 of 1094 Service Fund Charges (10) 24,047 5,855,145 5,855,145 24,047 — % — T&A Self Insurance Reserves 7,854,376 — — 7,854,376 — % — Landfill (1) 12,381,161 8,623 12,389,784 — (100) % (12,381,161) Total $ 86,183,848 $ 298,829,689 $ 320,227,186 $ 64,786,351 (29) %$ (21,397,497) CITY OF DUBUQUE FUND BALANCE CHANGES FUND BEGINNING BALANCE REVENUES EXPENDITURES ENDING BALANCE CHANGE IN FUND BALANCE DOLLAR CHANGE IN FUND BALANCE 1.Use of fund balance will be used to pay for projects in the City's five-year Capital Improvement Program. 2.Tax Increment & Reserve Fund use of fund balance will be used to pay for projects in the City's five-year Capital Improvement Program and to repay internal loans for developing the City's industrial parks / technology parks. 3.UDAG Repayments Fund use of fund balance will be used for Economic Development initiatives. 4.Section 8 Fund use of balance is reserved for housing assistance payments. 5.Cable TV & Equipment Fund use of fund balance will be used for future capital projects. 6.Expendable Library Gift Trusts Fund use of fund balance will be used for programs and speakers at the Library. 7.Increase in fund balance is required to maintain the operating reserve requirement of 20% of operating expenditures. 8.Stormwater Operation Fund use of fund balance represents spending down cash balance due to debt being issued for the Bee Branch project at a much slower time line which reduced debt service costs and increased fund balance. 9.Refuse Collection Fund use of fund balance will be used for future capital projects. 10.Service Fund Charges addition to fund balance will be used to purchase equipment in future years. 11.Salt Operations Fund addition to fund balance will be used to fund future capital purchases. 12.Passenger Facility Charge Fund balance will be used to pay for debt issued for the new Airport terminal project. 13.Customer Facility Charge Fund balance will be used to pay for parking lot improvements at the Airport. 14.Expendable Police Gift Trusts Fund use of fund balance will be used for maintenance of 1948 Stylemaster and canine expenses. 15.Veteran's Memorial Fund balance will be used for maintenance of the Veteran's Memorial. Financial Summaries 231 Page 596 of 1094 DISTRIBUTION OF COMMUNITY DEVELOPMENT FUNDS 232 Page 597 of 1094 This page intentionally left blank. 233 Page 598 of 1094 Community Development Block Grant 234 Page 599 of 1094 Community Development Block Grant 235 Page 600 of 1094 Community Development Block Grant 236 Page 601 of 1094 Community Development Block Grant 237 Page 602 of 1094 DEBT MANAGEMENT 238 Page 603 of 1094 This page intentionally left blank. 239 Page 604 of 1094 DEBT SERVICE FUND The Debt Service Fund is a legally required fund. The fund administers the payments for all of the City’s general obligation debt. Revenue bonds, other than those from tax increment revenues, are administered in the enterprise fund that is securing the debt. For the majority of projects funded through general obligation debt, the City usually issues twenty-year general obligation bonds. In Fiscal Year 2026, there is anticipated to be an additional $7,726,560 in general obligation debt issued that would apply against the statutory debt limit and $14,122,187 in principal retired will be applied against the statutory debt limit. In fiscal year 2026, debt service expense related to general obligation bonds that counts against the statutory debt limit will increase 4.07% under fiscal year 2025 in the debt service fund. New general obligation bond debt which counts against the statutory debt limit planned to be issued (non-enterprise fund) in fiscal year 2026 is as follows: Project Amount of Debt Issue FY 2026 Debt Service Fire Equipment Replacement (LOST) 401,060 $ — Fire Station Improvements (LOST) 100,000 — Airport Improvements (LOST) 1,000,500 — Park Development (LOST) 505,000 — Reimagine Comiskey Park (GDTIF) 1,697,000 — Federal Building Renovation (GDTIF) 945,600 — Parking Ramp Major Maintenance (GDTIF) 2,857,400 — Solid Waste Collection Vehicles - Refuse 220,000 — GRAND TOTAL $ 7,726,560 $ — The new debt issued in fiscal year 2026 will be issued in April, which delays principal payments until fiscal year 2027. The debt service property tax levy finances the bond and interest payments that are not being secured from other revenue sources. The levy rate for debt service will decrease by -0.02 to 0.08052 in fiscal year 2026. The debt service property tax levy represents the repayment of bonds related to the Fire Department pumper truck replacement and the franchise fee litigation judgment bond. Funding sources other than property taxes are also used to repay general obligation debt. The City’s general obligation debt is also funded by other revenues including water, sewer and tax increment financing. One percent of the City’s general obligation debt service is funded from the debt service property tax levy. Other revenues being used to repay debt service are shown as transfers in. Debt Management 240 Page 605 of 1094 Statutory Debt Limit 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% Debt Management 241 Page 606 of 1094 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 W. Des Moines (FY24)$ 551,635,692 $ 307,090,000 55.67 % 9 Cedar Rapids (FY 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 % Percentage of Legal Debt Limit Utilized 68% 58%56% 47% 62% 47% 33% 42% 24%24% 17% 21% Des M o i n e s Siou x C i t y Wat e r l o o Dav e n p o r t Ced a r R a p i d s W. D e s M o i n e s DUB U Q U E ( F Y 2 4 ) Avg . w / o u t D u b u q u e Ank e n y Am e s Cou n c i l B l u f f s Iow a C i t y 10% 20% 30% 40% 50% 60% 70% Debt Management 242 Page 607 of 1094 STATUTORY DEBT CAPACITY FISCAL YEAR 2026 RECOMMENDED BUDGET The Iowa Constitution (Article XI, Section 3) stipulates that the debt of a community may not exceed five percent of the Actual Assessed Value of Taxable Property (debt levy) within the city or town. General Obligations, TIF debt (bonds, notes and rebates), and leases paid from the general fund are included as indebtedness of the City under the statutory debt limit. January 1, 2024 FY 2026 ASSESSED VALUE OF REAL PROPERTY $ 6,055,803,220 Less Veterans' Exemption (30,859,670) Subtotal 6,024,943,550 UTILITIES ASSESSED VALUE 447,648,143 TOTAL ASSESSED VALUE OF TAXABLE PROPERTY 6,472,591,693 June 30, 2026 STATUTORY DEBT (5% OF TOTAL ASSESSED VALUE) 323,629,585 Less Outstanding G.O. Debt, TIF Debt & Lease Obligations paid from General Fund 108,410,164.41 STATUTORY DEBT CAPACITY $ 215,219,420.59 PERCENT OF LEGAL DEBT MARGIN UTILIZED 33.50 % Debt Management 243 Page 608 of 1094 Total Debt Outstanding 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 a m o u n t o f 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 Debt Management 244 Page 609 of 1094 Fiscal Year G. O . D e b t P e r C a p i t a General Obligation Debt Per Capita $2,031 $1,851 $1,805 $1,815 $1,586 $1,578 $1,840 $1,817 $1,778 $1,729 $1,760 $1,931 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 General Obligation Debt Per Capita reflects all general obligation bonds, both tax supported and enterprise fund supported. The decrease in G.O. Debt Per Capita is related to the City Council debt reduction strategy which targeted retiring more debt each year than was issued by the City. Debt Management 245 Page 610 of 1094 City of Dubuque Summary of Bonded Indebtedness General Obligation Bonds (Essential Corporate Purpose) Airport New Terminal Furnishings ST20 Ref 6/2/21 2.00 %2026 $ 25,000 $ 5,100 $ 5,100 $ 102 $ — Airport Improvements Refunding 4/17/17 3.00 %2030 282,200 115,800 24,800 3,474 91,000 Airport Improv - PFC Refunding 2012C 6/2/21 2.00 %2032 1,353,033 898,389 119,889 17,968 778,500 Airport Terminal Utility Improv - PFC 6/2/21 2.00 %2034 490,000 350,000 35,000 7,000 315,000 Airport New Terminal Roads/Parking 4/4/16 2.79 %2036 635,927 371,199 31,652 11,003 339,547 Airport Reconstruct Taxiway Alpha 3/3/25 4.33 %2044 534,004 534,004 12,684 29,983 521,320 Airport Improvements - FY26 Future 4.50 %2046 1,000,500 — 1,000,500 Building- Conf Center Energy Improv 6/20/19 3.00 %2027 187,136 47,872 23,936 1,436 23,936 Building 18th Street Improv Sales Tax 20%3/19/18 3.05 %2026 391,913 56,545 56,545 1,782 — Building City Hall Brickwork - ST20%6/20/19 3.00 %2027 236,448 64,329 32,164.56 5,325.95 32,164 Building Smart Meters Refunding 4/17/17 3.00 %2030 45,400 18,600 4,000 558 14,600 Building Federal Building Roof - ST20%4/4/16 2.79 %2035 268,404 156,672 13,359 4,644 143,313 Building 2nd Floor Engine House #1 08/01/203 4.70 %2043 207,060 200,246 7,228 9,552 193,018 Civic Center Improvements - Sales Tax 20%6/20/19 3.00 %2027 323,146 87,916 43,958 7,279 43,958 Civic Center Chair Platform Section 3 6/20/19 3.00 %2027 59,340 15,180 7,590 455 7,590 DICW Expansion - South Siegert Farm 3/19/18 3.05 %2026 239,534 34,559 34,559 1,088 — DICW North Siegert Refunding 4/17/17 3.00 %2029 1,285,000 480,000 115,000 14,400 365,000 DICW Expansion Consult Refund 2012H 6/2/21 2.00 %2032 95,580 63,366 8,496 1,267 54,870 DICW Exp S Siegert Refundin 2012C Tax 6/2/21 2.00 %2032 2,498,375 1,658,875 221,375 33,178 1,437,500 DICW Expansion - South Siegert Farm- Ex 6/20/19 3.00 %2032 305,357 178,938 24,367 4,035 154,571 DICW Refund 2014C Taxable 6/2/21 2.00 %2034 1,145,000 825,000 80,000 16,500 745,000 DICW Webber Property 6/29/22 4.36 %2042 5,500,000 5,405,000 50,000 230,713 5,355,000 DICWChavenelle Road - Non-Taxable 6/2/21 2.00 %2041 1,265,000 1,095,000 60,000 21,900 1,035,000 E911 Tower Relocation - Sales Tax 20%6/20/19 3.00 %2027 141,869 38,597 19,299 3,196 19,299 Finance General Ledger Software 6/2/21 2.00 %2041 244,239 205,640 11,314 4,113 194,326 Finance General Ledger Software 6/29/22 4.07 %2042 420,457 383,037 18,710 16,267 364,327 Fire Station #4 Improvements - Gaming 6/20/19 3.00 %2027 188,054 41,522 20761 3438 20,761 Fire Truck Refunding - Debt Service Levy 4/17/17 3.00 %2030 951,500 390,700 83,700 11,721 307,000 Fire Station #2 ST20 20 yr Refund 2014B 6/2/21 2.00 %2034 85,217 68,946 6046 1379 62,900 Park Imp ST20 20 yr Refund 2014B 6/2/21 2.00 %2034 124,780 100,954 8,854 2,019 92,100 Fire Ambulance Replacement 4/17/17 3.00 %2030 230,000 100,000 20,000 3,000 80,000 Fire Structural Repairs 5&6/Quick Pump 6/20/19 3.00 %2039 448,875 448,875 13,466 448,875 Fire Ladder/Pumper / HVAC FY21 6/2/21 2.00 %2041 810,153 682,118 37,528 13,642 644,590 Fire Ladder/Pumper/Ambulance 6/29/22 4.07 %2042 1,924,543 1,761,963 81,290 70,677 1,680,673 Fire HVAC 08/01/203 4.70 %2043 188,790 182,570 6598 8,720 175,972 Fire Ambulance/Equipment/Building Improv 3/3/25 4.33 %2044 3,653,911 3,653,911 86,820 205,227 3,567,091 Fire Ladder/Pumper 3/3/25 5.04 %2044 2,141,750 2,141,750 48,750 130,719 2,093,000 Fire Equipment Replacement - FY26 Future 4.50 %2046 401,600 — 401,060 Fire Station Improvements - FY26 Future 4.50 %2046 100,000 — 100,000 Franchise Fee Settlement Judgment Bond 4/4/16 2.93 %2035 2,830,000 1,615,000 145,000 50,825 1,470,000 GDTIF Colts Building Renovation 6/20/19 3.00 %2039 1,575,000 1,295,000 75,000 38,850 1,220,000 GDTIF - Parks Jackson/Clock Non-Taxable 6/2/21 2.00 %2041 535,000 535,000 30,000 10,700 505,000 GDTIF - DT Parking Ramp 6/2/21 2.00 %2036 880,167 760,764 61,407 15,215 699,357 GDTIF Eng Dock Expansion 6/2/21 2.00 %2036 409,833 354,235 28,593 7,085 325,642 Description Date of Issue Average Interest Rate Year of Final Payment Amount of Issue Principal Outstanding 6/30/25 Principal Due FY 2026 Interest Due FY 2026 Principal Outstanding 6/30/26 Debt Management 246 Page 611 of 1094 GDTIF DT Parking Ramp 6/29/2022 4.36 %2042 975,000 935,000 40,000 39,853 895,000 GDTIF Docks/Five Flags AC 6/29/22 4.36 %2042 745,000 715,000 30,000 30,468 685,000 GDTIF Five Flags/Parking Ramps 8/1/23 4.70 %2043 1,080,000 1,045,000 40,000 49,933 1,005,000 GDTIF Chaplain Schmitt Amphitheater 3/3/25 5.06 %2044 8,945,000 8,945,000 — 451,239 8,945,000 GDTIF ABC/Parking/Federal Building 3/3/25 5.04 %2044 5,075,000 5,075,000 115,000 309,787 4,960,000 GDTIF Reimagine Comiskey - FY26 Future 4.50 %2046 1,697,000 — — — 1,697,000 GDTIF Federal Building Renovation - FY26 Future 4.50 %2046 945,600 — 945,600 GDTIF Parking Ramp Major Maint- FY26 Future 4.50 %2046 2,857,400 — — — 2,857,400 GDTIF Downtown Housing Refunding 4/17/17 3.00 %2030 2,120,000 970,000 180,000 31,705 790,000 GDTIF Millwork District Refunding 4/17/17 3.00 %2030 2,080,000 910,000 170,000 27,300 740,000 GDTIF - 7th St/2-Way Conversion 6/2/21 2.00 %2031 3,204,576 2,021,405 315,265 40,428 1,706,140 GDTIF - Intermodal 2012A Refunding 6/2/21 2.00 %2031 2,545,000 1,605,000 250,000 32,100 1,355,000 GDTIF 5th St Restroom/MFC 2012H Ref 6/2/21 2.00 %2032 1,254,420 831,634 111,504 16,633 720,130 GDTIF Wash Neigh Refunding 2012C Tax 6/2/21 2.00 %2032 493,592 327,736 43,736 6,555 284,000 GDTIF 2014C Taxable Refunding 6/2/21 2.00 %2034 5,385,000 3,885,000 395,000 77,700 3,490,000 GDTIF 2014B Refunding 6/2/21 2.00 %2034 155,000 115,000 10,000 2,300 105,000 Library Improvements - Sales Tax 20%6/20/19 3.00 %2022 39,408 10,721 5,361 888 5,361 Library Improvements Sales Tax 20%6/2/21 2.00 %2027 84,526 28,737 14,297 575 14,440 Park Development - Sales Tax 20% FY26 Future 4.50 %2046 505,000 — — — 505,000 Park Improvements - Sales Tax 20%6/20/19 3.00 %2027 47,290 12,866 6,433 1,065 6,433 Park Water System Study Refunding 4/17/17 3.00 %2030 60,000 24,600 5,300 738 19,300 Park Ham House - Sales Tax 20%4/4/16 2.79 %2035 200,668 117,132 9,988 3,472 107,144 Park Skate Park 6/20/19 3.00 %2027 613,524 156,948 78,474 4,708 78,474 Parking Port of Dubuque Parking Ramp 3/19/18 3.05 %2026 373,553 53,896 53,896 1,698 — Parking Central Ave Ramp Refunding 4/17/17 3.00 %2030 6,380,000 2,430,000 575,000 72,900 1,855,000 Parking Iowa Street Ramp Improvements 3/19/18 2.91 %2031 45,516 23,502 3,597 705 19,905 Parking Locust Ramp Security Cameras 6/20/19 3.00 %2033 126,054 67,711 9,747 1,614 57,964 Parking Improvements Refunding 2014B 6/2/21 2.00 %2034 125,000 85,000 10,000 1,700 75,000 Parking Improvements Taxable Ref 6/2/21 2.00 %2034 220,000 160,000 15,000 3,200 145,000 Police CAD Software - Gaming Ref 6/2/21 2.00 %2030 160,000 90,000 20,000 1,800 70,000 Public Works Equip Refunding 4/17/17 3.00 %2030 392,000 160,900 34,500 4,827 126,400 Public Works Radio Replacement 3/19/18 2.91 %2028 110,000 34,874 10,732 1,046 24,142 PW Curb Ramp/Engineering Street Improv 6/2/21 2.00 %2034 885,000 645,000 65,000 12,900 580,000 Rec Improvements Sales Tax 20% Ref 6/2/21 2.00 %2028 7,572 3,309 1,092 66 2,217 Rec Ice Center Settling Remediation/Imp 08/01/203 4.70 %2043 4,614,150 4,462,185 161,175 213,016 4,301,010 Rec Ice Center Dehumidification 3/3/25 5.04 %2044 1,153,250 1,153,250 26,250 70,387 1,127,000 Sanitary Improvements Refunding 4/17/17 3.00 %2030 660,000 290,000 55,000 8,700 235,000 Sanitary Sewer Improvements 3/19/18 2.91 %2031 1,030,009 531,819 81,402 15,954 450,417 Sanitary Forcemain Refunding 2012E 6/2/21 2.00 %2032 376,122 242,934 34,096 35,162 208,838 Sanitary Sewer Improvements 6/20/19 3.00 %2033 1,124,412 657,648 87,722 14,525 569,926 Sanitary Sewer Improvements Ref 6/2/2021 2.00 %2034 4,390,000 3,160,000 320,000 63,200 2,840,000 Sanitary Sewer Improvements 4/4/16 2.79 %2035 2,405,000 1,405,000 125,000 41,606 1,280,000 Solid Waste Collection Refunding 4/17/17 3.00 %2030 51,300 21,100 4500 633 16,600 Solid Waste Collection 3/19/18 2.91 %2031 27,447 14,172 2,169 426 12,003 Solid Waste Collection 3/3/25 4.33 %2044 862,085 862,085 20,484 48,421 841,601 Solid Waste Collection - FY26 Future 4.50 %2046 220,000 — 220,000 Stormwater Refunding 4/4/16 2.91 %2028 6,270,000 760,000 245,000 22,800 515,000 Stormwater Improvements Refunding 4/17/17 3.00 %2030 2,015,000 835,000 170,000 25,050 665,000 Stormwater Improvements 3/19/18 2.91 %2031 1,714,542 885,275 135,501 26,558 749,774 Stormwater Improvements Ref 6/2/21 2.00 %2031 1,115,424 703,595 109,735 14,072 593,860 Stormwater Improvements Ref 6/2/21 2.00 %2032 77,131 49,818 6,992 996 42,826 Stormwater Improvements 6/20/19 3.00 %2033 290,796 174,110 24,367 4,035 149,743 Stormwater Upper Bee Branch SRF NA 4/30/21 1.18 %2037 22,138,000 16,114,000 1,258,000 230,430 14,856,000 Streetlight Replacement Refunding - ST 4/17/17 3.00 %2030 4,900 2,100 400 63 1,700 Street FEMA Land Buyout - Gaming 6/20/19 3.00 %2027 64,901 16,960 8,480 1,404 8,480 Street Fiber/Sidewalk/Lights Refunding RUT 4/17/2017 3.00 %2030 258,600 106,200 22,800 3,186 83,400 Street Southwest Arterial 3/19/2018 2.91 %2031 771,557 398,383 60,977 11,952 337,406 Street Southwest Arterial - Refunding 2012E 6/2/21 2.00 %2032 827,747 576,371 70,002 11,527 506,369 Description Date of Issue Average Interest Rate Year of Final Payment Amount of Issue Principal Outstanding 6/30/25 Principal Due FY 2026 Interest Due FY 2026 Principal Outstanding 6/30/26 Debt Management 247 Page 612 of 1094 Transit Radio Replacement 3/19/18 2.91 %2028 95,000 30,124 9,268 904 20,856 Transit Midtown Transfer 6/20/19 3.00 %2039 216,125 216,125 6,484 216,125 Transit Vehicle Replacement 6/2/21 2.00 %2041 780,609 657,243 36,159 13,145 621,084 Water System Improvements 3/19/18 2.91 %2031 1,155,930 596,846 91,354 17,906 505,492 Water Improv Refunding 2012E 6/2/21 2.00 %2032 369,768 238,830 33,520 4,777 205,310 Water System Improvements 6/20/19 3.00 %2033 1,323,107 773,684 102,342 16,946 671,342 Water System Improvements Ref 6/2/21 2.00 %2034 7,470,000 5,380,000 550,000 107,600 4,830,000 Water System Improvements 4/4/16 2.79 %2035 635,000 375,000 35,000 11,088 340,000 Total General Obligation Bonds 151,099,706 100,599,000 8,307,989.56 3,306,757.95 100,017,572 Less Annual Appropriation G.O. — (14,625,570) — — (13,369,544) Total G.O. Bonds Subject to Debt Limit 151,099,706 85,973,430 8,307,990 3,306,758 86,648,028 Tax Increment Port of Dubuque Parking Ramp 10-16-07 7.50 %2037 23,025,000 15,565,000 845,000 1,167,375 14,720,000 Total Tax Increment Bonds 23,025,000 15,565,000 845,000 1,167,375 14,720,000 Total Tax Increment $ 23,025,000 $ 15,565,000 $ 845,000 $ 1,167,375 $ 14,720,000 TIF bond issue for the Port of Dubuque Parking Ramp backed by Greater Downtown TIF & a minimum assessment agreement Tax Increment Economic Development TIF Rebate Agreements Dubuque Screw (DICW)6/19/06 Rebate 2019 $ 345,516 $ 19,728 $ 19,728 $ — $ 19,728 Geisler Brothers (DICW)9/29/22 Rebate 2035 1,290 1,291 1,291 — 1,291 Seippel Warehouse (DICW)9/29/22 Rebate 2035 442,190 442,190 442,190 — 442,190 Giese III (DICW)4/19/21 Rebate 2033 55,171 55,171 55,171 — 55,171 Medline (DICW)11/19/07 Rebate 2031 1,600,279 397,349 397,349 — 397,349 Simmons Pet Food (DICW)12/9/20 Rebate 2030 397,918 476,354 476,354 — 476,354 Hodge (DICW)4/6/20 Rebate 2035 257,073 518,208 518,208 — 518,208 Green Industrial Supply (DICW)8/15/11 Rebate 2023 2,908,812 155,273 155,273 — 155,273 Tri-State Quality Metals (DICW) Non- Appropriation 3/17/14 Rebate 2026 32,510 75,164 75,164 — — Roasting Solutions (DICW) Non- Appropriation 1/14/16 Rebate 2028 33,666 69,586 69,586 — 69,586 Rite Hite(DICW) Non-Appropriation 1/14/17 Rebate 2030 24,190 140,629 140,629 — 140,629 Hormel Foods (DICW) (100% 2021/40% 2026)4/21/08 Rebate 2026 8,250,067 251,779 251,779 — — Linseed Oil (GDTIF) Multi-Res 3/7/13 Rebate 2030 576,504 84,525 16,905 — 67,620 METX - Lamar Building (GDTIF) (Non- Appropriation)5/13/20 Rebate 2031 75,660 178,160 178,160 — 178,160 Marquette Hall (GDTIF) (Non-Appropriation)5/20/19 Rebate 2031 9,170 4,960 4,960 — 4,960 3 Amigos (GDTIF) (Non-Appropriation)4/15/19 Rebate 2031 2,516 3,114 3,114 — 3,114 210 Jones (GDTIF) (Non-Appropriation)6/19/17 Rebate 2031 10,348 24,525 24,525 — 24,525 Dupaco (GDTIF) NA 1/22/19 Rebate 2038 173,225 173,225 173,225 — 173,225 Klauer (GDTIF) NA 1/12/22 Rebate 2035 104,380 104,380 104,380 — 104,380 McCoy Group (GDTIF)6/20/23 Rebate 2035 248,980 248,890 248,890 — 248,890 Prairie Farms Dairy (GDTIF) (Non- Appropriation)3/18/19 Rebate 2031 5,626 12,196 12,196 — 12,196 Julien Hotel (GDTIF)4/21/08 Rebate 2026 3,260,286 264,175 264,175 — — 44 Main (GDTIF) Multi-Res 10/18/10 Rebate 2027 446,799 158,562 79,281 — 79,281 Barker Financial (GDTIF) Multi-Res 8/16/10 Rebate 2027 297,282 13,545 13,545 — — 253 Main St. (GDTIF) (Non-Appropriation)4/6/15 Rebate 2027 5,798 3,082 3,082 — 3,082 Spahn and Rose (GDTIF) NA 4/21/14 Rebate 2027 108,221 119,222 119,222 — 119,222 Franklin Investment -Multires (GDTIF)4/4/11 Rebate 2028 437,225 62,637 20,879 — 41,758 Plastic Center Betty Jane Block (GDTIF)2/7/11 Rebate 2028 148,957 20,241 6,747 — 13,494 Caradco (GDTIF) Multi-Res 3/21/11 Rebate 2028 1,499,442 388,674 129,558 — 259,116 Bonson 356 Main St. (GDTIF) Multi-Res 12/19/11 Rebate 2028 152,286 28,767 9,589 — 19,178 Roshek Building (GDTIF) NA 2/17/09 Rebate 2030 5,149,852 388,088 388,088 — 388,088 Novelty Iron Works (GDTIF) NA Multi-Res 6/17/13 Rebate 2031 33,105 196,926 196,926 — 196,926 Switch Development 6/20/23 Rebate 2035 5,766 5,766 5,766 — 5,766 Gardens 9/28/20 Rebate 2038 428,116 428,116 32,932 — 395,184 Rockfarm Holdings (TECH) NA 10/7/14 Rebate 2027 42,301 47,176 47,176 — 47,176 Total TIF Rebates 27,570,527 5,561,674 4,686,043 — 4,661,120 Bowling & Beyond Lease Buyout 10-15-12 Buyout 2032 1,000,000 350,000 50,000 — 300,000 Description Date of Issue Average Interest Rate Year of Final Payment Amount of Issue Principal Outstanding 6/30/25 Principal Due FY 2026 Interest Due FY 2026 Principal Outstanding 6/30/26 Debt Management 248 Page 613 of 1094 Iowa Finance Authority Loan - Caradco 12-01-10 3.0000 %2030 4,500,000 2,314,171 233,154 67,690 2,081,017 Total Other Lns-Rev Backed 5,500,000 2,664,171 283,154 67,690 2,381,017 Total City Indebtedness Subject to Debt Limit $ 207,195,233 $ 109,764,275 $ 14,122,187 $ 4,541,823 $ 108,410,165 Revenue Bonds Sanitary Northfork Catfish Improv SRF 1/13/10 3.25 % 2031 $ 912,000 $ 285,000 $ 53,000 $ 9,263 $ 232,000 Sanitary WRRC Upgrade SRF 8/18/10 3.25 % 2039 74,285,000 44,755,000 2,802,000 895,099 41,953,000 Sanitary WRRC Cogeneration SRF 5/17/13 2.00 % 2033 3,048,000 1,366,000 159,000 27,320 1,207,000 Sanitary Kerper Boulevard & Sponsor SRF 3/8/19 1.00 % 2038 2,763,000 1,781,000 131,000 17,810 1,650,000 Sanitary 42" Force Main WQFP Loan 3/3/23 1.00 % 2043 1,950,000 1,773,000 90,000 17,730 1,683,000 Sanitary Granger Creek & Force Main 9/20/2024 2.61 % 2045 2,536,000 2,536,000 97,000 64,737 2,439,000 Sanitary Old Mill Lift Station 2/7/2025 2.54 % 2046 26,221,000 26,221,000 — 475,942 26,221,000 Sanitary Projects- FY25 Future 2.60 % 2045 14,412,250 14,412,250 586,330 340,451 13,825,920 Sanitary Projects- FY26 Future 2.60 % 2046 20,079,873 — — — 20,079,873 Stormwater Lower Bee Branch SRF 10/27/10 3.25 % 2041 7,850,000 5,097,000 248,000 165,652 4,849,000 Stormwater Lower Bee Branch SRF 9/1/14 2.00 % 2034 1,029,000 151,000 18,000 3,020 133,000 Stormwater Northfork Catfish Improv. SRF 1/13/10 3.25 % 2031 800,000 250,000 47,000 8,125 203,000 Stormwater Sales Tax Increment Rev NA 6/15/15 3.72 % 2031 20,800,000 14,575,000 2,225,000 546,032 12,350,000 Stormwater Sales Tax Revenue - GO 5/19/14 3.23 % 2029 7,190,000 4,875,000 1,125,000 219,250 3,750,000 Stormwater Upper Bee Branch RR SRF 6/7/2019 2.00 % 2040 16,382,000 12,873,000 744,000 257,461 12,129,000 Stormwater West 32nd Detention SRF 1/14/09 3.25 % 2028 1,847,000 355,000 115,000 11,538 240,000 Stormwater Projects- FY26 Future 2.60 % 2046 632,643 — — — 632,643 Water Webber Extension - FY22 P&D 1/7/22 — % 2047 1,570,000 1,469,662 68,575 29,052 1,401,087 Water Projects- FY25 Future 2.60 % 2045 10,096,428 10,096,428 410,751 238,501 9,685,677 Water Projects- FY26 Future 2.60 % 2046 750,000 — — — 750,000 Water Roosevelt Water Tower SRF 8/9/19 2.00 % 2040 4,400,000 3,445,000 203,000 68,900 3,242,000 Water CIWA Purchase & Improvements 7/7/17 2.00 % 2036 8,613,761 5,804,000 439,000 116,080 5,365,000 Water- Clear Well Reservoirs SRF 10/18/07 3.25 % 2028 915,000 177,000 57,000 3,540 120,000 Water Meter Change Out Program SRF 2/12/10 3.25 % 2031 6,394,000 2,343,000 360,000 76,265 1,983,000 Water System Improvements & Ext. Refunding 8/18/21 2.00 % 2030 3,505,000 2,055,000 390,000 41,100 1,665,000 Total Revenue Bonds 238,981,955 156,695,340 10,368,656 3,632,868 167,789,200 Less Annual Appropriation Revenue Bds — (11,803,968) — — (9,581,282) Net Revenue Bonds 238,981,955 144,891,372 10,368,656 3,632,868 158,207,918 Total City Indebtedness $ 446,177,188 $ 281,085,185 $ 24,490,843 $ 8,174,691 $ 289,568,909 Statutory Debt Limit $ 321,926,120 $ 323,629,585 % of Debt Limit Used 34.10 % 33.50 % Remaining Debt Capacity $ 212,161,846.25 $ 215,219,420 Description Date of Issue Average Interest Rate Year of Final Payment Amount of Issue Principal Outstanding 6/30/25 Principal Due FY 2026 Interest Due FY 2026 Principal Outstanding 6/30/26 Debt Management 249 Page 614 of 1094 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 Debt Management 250 Page 615 of 1094 Bond Rating The City’s General Obligation Debt ratings with Moody's Investors Service is Aa2. 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. Credit Strengths: •Strong financial operations and ample revenue-raising flexibility •City serves as a regional economic center and its regional economic growth rate has outpaced the nation over the past five years Credit Challenges: •Full value per capita and median family income trail medians for the rating category •Elevated leverage Moody's Investors Service Rating Scale Debt Management 251 Page 616 of 1094 FY 2026 Moody's Investors Service Bond Ratings Comparison for Iowa Cities Ranking City Rating 1 Iowa City AAA West Des Moines AAA Cedar Falls AAA 2 Cedar Rapids Aa1 Ames Aa1 Ankeny Aa1 Clive Aa1 Urbandale Aa1 Marion Aa1 3 Dubuque Aa2 Des Moines Aa2 Davenport Aa2 Waterloo Aa2 Sioux City Aa2 Bettendorf Aa2 Council Bluffs Aa2 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%. Debt Management 252 Page 617 of 1094 This page intentionally left blank. Debt Management 253 Page 618 of 1094 CAPITAL BUDGET 254 Page 619 of 1094 This page intentionally left blank. 255 Page 620 of 1094 CAPITAL IMPROVEMENTS PROGRAM (CIP) The City’s five-year Capital Improvement Program (CIP), contained in a separate document, and is used to plan for major changes to the City’s infrastructure and other capital improvements. Departments propose projects in the fall and a draft of the CIP is developed before operational budgets are submitted. The CIP by department is reviewed with the operating budgets during budget hearings with City Council in February. The CIP is approved in March with the operating budget. The CIP document has a page for every project and the format includes description of the project, City Council Goals & Priority outcome, funding restrictions, effect on operations, and relationship to other projects. The CIP recommendation reflects the City’s comprehensive plan and the goals and priorities established by City Council. The FY 2026 recommended capital projects are incorporated into the budget as capital programs. They are found at the end of each applicable program section. Projects which have an effect on operations are noted. The City’s CIP Policies are shown in the Policy Budget documents. The five-year CIP recommended through the current year (Fiscal Year 2025) budget process covered Fiscal Year 2025 through 2029 and is $354,574,409. The recommended five-year CIP for the upcoming budget process (Fiscal Year 2026) will cover Fiscal Year 2026 through 2030 and is $351,594,553. This is a $(2,979,856), or 0.84% decrease. 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. Capital Improvement Program 256 Page 621 of 1094 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 $262,722,395 $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 Capital Improvement Program 257 Page 622 of 1094 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, neighborhood park developments, Federal Building renovations ($5,640,600), solid waste collection vehicles, sanitary sewer improvements ($78,399,027), 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 Capital Improvement Program 258 Page 623 of 1094 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 Capital improvement activities have been established in the City’s budget to separate CIP projects and project expense (i.e., Storm Sewer Capital Improvement Activity, Street Capital Improvement Activity, Park Capital Improvement Activity) from operating expense (i.e., supplies, insurance salaries). The State of Iowa budget law requires that a city’s budget be prepared and certified on a program basis. This means that each activity must fall under one of the State mandated budget program areas. Table 1 below shows a summary of the five-year CIP by State Program. This is a decrease of -$2,979,856 from the FY 2025-2029 total CIP budget of $354,574,409. TABLE 1 - FISCAL YEAR 2026-2030 CIP CAPITAL IMPROVEMENT PROGRAM EXPENDITURES FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 TOTAL Public Safety $ 501,060 $ 2,794,000 $ 1,450,000 $ — $ 2,414,308 $ 7,159,368 Public Works 33,729,584 17,366,227 17,957,673 35,112,439 11,524,144 115,690,067 Culture & Recreation 2,596,611 3,015,000 3,321,678 9,057,322 9,995,000 27,985,611 Community & Economic Devl 4,503,043 6,312,496 4,418,535 2,386,514 2,046,959 19,667,547 General Government 4,061,542 804,853 1,057,733 2,906,820 5,773,750 14,604,698 Business Type 46,411,909 34,530,942 41,638,149 25,015,510 18,890,752 166,487,262 TOTAL $ 91,803,749 $ 64,823,518 $ 69,843,768 $ 74,478,605 $ 50,644,913 $ 351,594,553 Capital Improvement Program 259 Page 624 of 1094 HOW THE MONEY IS SPENT 5 YEAR CAPITAL IMPROVEMENT BUDGET Public Safety 2.04% Public Works 32.90% Culture & Recreation 7.96% Community & Economic Development 5.59% General Government 4.15% Business Type 47.35% Capital Improvement Program 260 Page 625 of 1094 TABLE 2 - CIP FUNDING SOURCES FUNDING SOURCES FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 TOTAL Utilities $ 13,785,544 $ 7,469,021 $ 6,426,314 $ 7,389,451 $ 7,716,139 $ 42,786,469 Federal Funds 24,464,926 18,243,791 11,671,738 25,715,661 3,023,792 83,119,908 State Funds 1,012,074 1,812,474 4,290,974 794,974 1,065,000 8,975,496 Local Taxes 21,709,641 8,917,468 9,026,324 9,139,188 7,322,459 56,115,080 GO / Revenue Bonds 29,189,076 27,215,540 36,856,772 28,856,664 30,029,658 152,147,710 Operating Receipts 112,000 344,096 858,152 864,178 729,250 2,907,676 Other Revenues 1,530,488 821,128 713,494 1,718,489 758,615 5,542,214 TOTAL $ 91,803,749 $ 64,823,518 $ 69,843,768 $ 74,478,605 $ 50,644,913 $ 351,594,553 WHERE THE MONEY COMES FROM 5 YEAR CAPITAL IMPROVEMENT BUDGET Utilities 12% Federal Funds 24% State Funds 3% Local Taxes 16% GO / Revenue Bonds 43% Operating Receipts 1% Other Revenues 2% Capital Improvement Program 261 Page 626 of 1094 Operating Impacts The projects listed in the five-year Capital Improvement Program will have operating impacts as indicated below: Project Name FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Fire Station Expansion/Relocation $ — $ — $ — $ — $ 829,653 South Pointe Park Development — 2,000 2,000 2,000 2,000 Industrial Center Native Plantings — 2,000 — — — HVAC Replacement (WRRC) 5,000 5,000 5,000 5,000 — Industrial Controls Upgrade — (20,000) (25,000) (25,625) (26,265) UV System Cable & Harness Replacement — (1,500) (15,500) (1,600) (1,650) Biogas Chiller Replacement — (2,500) (2,550) (2,600) (2,650) Sanitary Sewer CCTV Inspection, Cleaning, & Assessment 14,958 29,916 29,916 29,916 29,916 Cedar and Terminal Street Lift Station and Force Main Assessment and Improvements — (242,500) (242,500) (242,500) (242,500) Old Mill Road Lift Station & Force Main - Phase 1 — 14,800 15,318 15,854 16,409 Street Camera Installation 51,684 62,634 73,584 — — Fiber Infrastructure Management System 15,000 15,000 15,000 — — Total Operating Impact $ 86,642 $ (135,150) $ (144,732) $ (219,555) $ 604,913 Category FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Personnel $ — $ — $ — $ — $ 829,653 Operating 86,642 (135,150) (144,732) (219,555) (224,740) Debt Service Total Operating Costs $ 86,642 $ (135,150) $ (144,732) $ (219,555) $ 604,913 Capital Improvement Program 262 Page 627 of 1094 CITY OF DUBUQUE, IOWA Fiscal Year 2026-2030 Capital Improvement Program (CIP) TO: The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager Attached is the Fiscal Year 2026-2030 Capital Improvement Program (CIP). State law requires that a five- year CIP be adopted by the City Council after a public hearing. The required CIP public hearing will be held March 23, 2023, at the same time as the public hearing on the Fiscal Year 2026 Operating Budget. The CIP, as the plan for the City’s physical development effort, attempts to address a variety of needs that the City must meet if it is to maintain its physical facilities, meet its service commitments and provide for its future development. The CIP adoption reflects the City’s comprehensive plan and the goals and priorities established by the City Council and are shown in each of the State mandated budget program areas. 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. Capital Improvement Program 263 Page 628 of 1094 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 $262,722,395 $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 Capital Improvement Program 264 Page 629 of 1094 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, neighborhood park developments, Federal Building renovations ($5,640,600), solid waste collection vehicles, sanitary sewer improvements ($78,399,027), 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 Capital Improvement Program 265 Page 630 of 1094 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. 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% Capital Improvement Program 266 Page 631 of 1094 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 W. Des Moines (FY24)$551,635,692 $307,090,000 55.67% 9 Cedar Rapids (FY 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% 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 u e ( F Y 2 6 ) Avera g e w / o D u b u q u e Sioux C i t y ( 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 o 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%). Capital Improvement Program 267 Page 632 of 1094 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 Capital Improvement Program 268 Page 633 of 1094 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% Capital Improvement Program 269 Page 634 of 1094 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 a m o u n t o f 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 Capital Improvement Program 270 Page 635 of 1094 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%. 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. Capital Improvement Program 271 Page 636 of 1094 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. 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 Capital Improvement Program 272 Page 637 of 1094 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. 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% Capital Improvement Program 273 Page 638 of 1094 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. 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 option for future debt issuances. Capital Improvement Program 274 Page 639 of 1094 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). 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 Program 275 Page 640 of 1094 The five-year CIP adopted through the current year (Fiscal Year 2025) budget process covered Fiscal Year 2025 through 2029 and is $354,574,409. The adopted five-year CIP for the upcoming budget process (Fiscal Year 2026) will cover Fiscal Year 2026 through 2030 and will be $351,594,553. This is a -$2,979,856 ((0.84)%) decrease. FY 2025-2029 Capital Improvement Program (CIP) compared to the FY 2026-2030 Capital Improvement Program is as follows: FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total FY25 CIP $ 88,753,825 $ 106,564,058 $ 55,048,354 $ 50,987,905 $ 53,220,267 $ — $ 354,574,409 FY26 CIP $ — $ 91,803,749 $ 64,823,518 $ 69,843,768 $ 74,478,605 $ 50,644,913 $ 351,594,553 $ Difference — -$14,760,309 +$9,775,164 +$18,855,863 +$21,258,338 — -$2,979,856 % Change — -13.85 % +17.76 % +36.98 % +39.94 % — -0.84 % Further information about the changes to capital improvement projects can be found on pages xv-xxi. Fiscal Year 2026 will be the nineteenth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low-to-moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2026 Stormwater User Fee is proposed to increase from $10.50 per SFU to $11.03 per SFU, a 5.00% increase. Rate Per Single Family Unit (SFU) Fiscal Year 2021 - Adopted Per Ordinance 21-20 $ 8.29 Fiscal Year 2022 - Adopted Per Ordinance 10-21 $ 8.85 Fiscal Year 2023 - Adopted Per Ordinance 13-22 $ 9.00 Fiscal Year 2024 - Adopted Per Ordinance 14-23 $ 10.00 Fiscal Year 2025 - Adopted Per Ordinance 14-24 $ 10.50 Fiscal Year 2026 - Recommended $ 11.03 The Stormwater Utility was formed on July 1, 2003, to update and expand the City’s aging infrastructure, comply with the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit, and implement the various elements of the 2001 Drainage Basin Master Plan Stormwater Management Plan (amended in 2013), which outlined improvements in both the Catfish Creek and Bee Branch watersheds. The flood mitigation improvements in the Catfish Creek Watershed have been completed. The improvements in the Bee Branch Watershed are part of the multi-phased, fiscally responsible, holistic Bee Branch Watershed Flood Mitigation Project which will mitigate flooding, improve water quality, stimulate investment, and enhance the quality of life. The City’s has been able to garner support from local, state, and federal partners with over $163 million in outside funding to help offset the cost of the overall $237 million project. Since 2001, the City has made steady progress on the various phases of the project. The phases of the Bee Branch Watershed Flood Mitigation Project are as follows: Capital Improvement Program 276 Page 641 of 1094 Phase Description Status 1 Carter Road Detention Basin Complete 2 West 32nd Street Detention Basin Complete 3 Historic Millwork District Complete 4 Lower Bee Branch Creek Restoration Complete 5 Flood Mitigation Gate & Pump Replacement Under Design 6 Impervious Surface Reduction 1/3 of alleys converted to “Green Alleys” 7 Upper Bee Branch Creek Restoration/Railroad Culverts Complete 8 22nd Street Storm Sewer Improvements Complete from Elm Street to N. Main 9 Flood Mitigation Maintenance Facility Site Cleanup/Preparation 10 North End Storm Sewer Improvements Initiate Design in 2028 11 Water Plant Flood Protection Initiate Design in 2024 12 17th Street Storm Sewer Improvements Complete from Elm St. to Heeb St. Each of the 12 phases provides some incremental benefit. But the risk of flash flooding remains until all improvements are implemented. But it is also true that with the completion of each subsequent phase, the threat of flash flood damage is lessened and the resulting damage will be mitigated. When complete, it is expected to prevent an estimated $582 million in damages over its 100-year design life. When the City Council adopted Ordinance 21-12 (passed and approved on March 7, 2012), they established that the stormwater utility fee would increase to $9.00 per month on July 1, 2016 in order to fund the operational and capital costs of the public stormwater management system, including improvements such as the Bee Branch Creek Restoration Project. But later in 2012, the Iowa General Assembly created the Flood Mitigation Program which provides funding for flood mitigation projects undertaken by local governments such as the City of Dubuque. Managed by the Iowa Flood Mitigation Board, the funding source established involves taking a portion of the incremental growth of State sales tax revenue collected within a city and diverting from the State General Fund to cities approved for the funding. Having updated the Drainage Basin Master Plan in the fall of 2013, which outlined the improvements associated with the 12-phase Bee Branch Watershed Flood Mitigation Project, the City was successful in securing $98.5 million in State sales tax increment funding. With the infusion of funding, the City Council adopted Ordinance 16-14 (passed and approved on March 5, 2014) establishing that the stormwater utility fee did not reach $9.00 per month until July 1, 2021, five years later than later than previously scheduled. Capital Improvement Program 277 Page 642 of 1094 The CIP budget reflects the Dubuque Five-Year (2024-2026) City Council Goals and 2024-2026 Policy Agenda, established by the City Council August, 2024. Dubuque Five-Year City Council Goals Vibrant Community: Healthy and Safe Financially Responsible, High Performance City Organization: Sustainable, Equitable, and Effective Service Delivery Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity Livable Neighborhoods and 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 and Activities Partnership for a Better Dubuque: Building our Community that is Viable, Livable, and Equitable Policy Agenda 2024 - 2026 Top Priority (in alphabetical order) •Air Service Future Strategy and Action Plan: Major Airline Hub Connections •Central Avenue Revitalization Plan Implementation •Construction of the 14th Street Railroad Overpass and the 16th Street Corridor Complete Street Improvements: RAISE Grant and Matching Funds •Police Department Staffing and Hiring •Street Maintenance/ Rehabilitation Program High Priority •Catfish Creek Sanitary Sewer Project: Old Mill Road Lift Station •Chaplain Schmitt Island Development •City Workforce Retention and Attraction •Comprehensive Study of Fire Station Locations and Staffing •Parks Maintenance/Refresh Action Plan Attachment 3 provides a summary of these projects organized by City Council’s five-year goals and Fiscal Year 2026 priorities reflect how these goals are addressed. Finally, Attachment 4 provides detail on the source of funds and highlights important points about the 5- year CIP Program. Capital Improvement Program 278 Page 643 of 1094 CIP FORMAT The format for the Fiscal Year 2026-2030 CIP is substantially the same as previous fiscal years. First, an index referencing the 2026-2030 Capital Improvement Budget follows the budget message. The index identifies each capital improvement first by city department and then by all applicable State programs as a subcategory under each department. The index serves as a quick reference for each CIP, and the far right hand column shows the page number of each project. Secondly, a separate project page is provided to show the detail for each individual project. These projects pages are also arranged first by city department and then by State program as a subcategory within each department. As in previous CIP budget documents, each detailed project page identifies the city department, the state program, project title, account code (consisting of program number, department number, fund and capital project number), and total project cost. The project page then shows any funds expended for the project in Fiscal Year 2024 and the adopted budget in Fiscal Year 2025. In Section A of the project form entitled “Expenditure Items”, project costs are shown by major expenditure item (i.e., Design and Engineering, Land and Right-of-Way Purchase, Construction and Other Expense). In Section B, entitled “Project Financing”, the project funding is presented by major revenue source (i.e., General Fund, Sales Tax Fund, Water Depreciation Fund, Sanitary Sewer Construction Fund, and Road Use Tax Fund). In Section C, entitled “Impact – Operations,” the dollar impact on operations in terms of greater or lesser operating costs and/or greater or lesser revenue is provided when available. Lastly, there is a narrative section, which provides a description of the project, a justification for the project and, where appropriate, how it relates to other projects or plans. A small map may also be provided to further identify the location of the project. Each detailed project page identifies the budget for each fiscal year in the next five years. There is a sixth column labeled "2031". This column is included to show that the project does not end in the next five years and that additional budget will be needed to fully complete the project. The "2031" column will show the total remaining estimate for the project, unless the project is annual. This column could also be known as "Beyond Fiscal Year 2030." If a project is annual the "2031" column will only show one years worth of budget. New this fiscal year is a section in the detailed project pages called "First Year Submitted". This information represents the year the capital improvement project was first submitted for consideration. This is not the first year that the capital project was adopted for funding, but instead represents the first year a staff member identified a need for the project and created a CIP to present to the City Manager. CONCLUSION The Capital Improvement Program represents the City of Dubuque’s commitment to a maintenance and physical development plan for the next five years. The first year of the five-year CIP goes into the budget for next year and deserves the most attention. As you know, the CIP is updated each year so that City Council will have an opportunity in the next year to change Fiscal Year 2027 through Fiscal Year 2030 projects, as well as to add projects for Fiscal Year 2031. A ranking system was established in Fiscal Year 2019 to more readily identify capital projects that directly meet City Council Goals and Priorities and address City needs. This ranking process also included several collaborative meetings with staff to determine which projects should be recommended for funding with the limited resources available. Capital Improvement Program 279 Page 644 of 1094 Notable FY2026 Capital Improvement Projects Fire Bunk Room Remodel $1,175,000 Fire Outdoor Warning Siren Repair/Replace $107,060 Fire Fire Station Expansion $500,900 Fire 2027 Fire Engine Replacement (1907)$900,000 Fire 2027 Ambulance Replacement (1914)$450,000 Fire 2028 Fire Engine Replacement (1905)$950,000 Fire Portable Radio Replacements $838,000 Fire 2030 Fire Engine Replacement (1910)$1,288,408 Fire 2030 Ambulance Replacement (1915)$575,000 Parks Reimagine Comiskey $1,697,000 Parks Rustic Point Park Development $305,000 Parks South Pointe Park Development $200,000 Parks Washington Community Gateway $99,000 Parks Second Dog Park Planning $60,000 Parks Ash Tree Removal and Tree Replacement $464,611 Civic Center Five Flags Building Improvements $23,454,000 Recreation Port of Dubuque Flood Wall Dubuque Welcome Sign $33,000 Conference Center Roof Restoration $1,383,000 Conference Center Public Restroom Remodels $385,000 Water Admiral Sheehy Drive Water Main Loop $686,400 Water Public Lead Line Water Main Replacement $45,000 Water Source Water PFAS Reduction Project - Granular Activated Carbon Filter Rehabilitation $9,600,000 Water Source Water PFAS Reduction Project $1,121,199 Water Water Main Replacement Consent $1,280,000 Water Water Meter Replacement Program $937,000 Water Water Storage Maintenance Program $3,000,000 W&RRC Bar Screen Replacement $2,500,000 W&RRC WRRC Plant Nutrient Reduction Improvements and BOD/Flow Capacity Improvements $7,035,000 W&RRC Industrial Controls Upgrade $1,900,000 Airport Reconstruct Taxiway A $18,709,994 Airport Reconstruct General Aviation Apron $2,480,000 Airport Asphalt Pavement Repair/T-Hangar Apron Rehabilitation $1,425,000 Airport Taxiway D Extension $2,940,000 Public Works Asphalt Milling Program $739,616 Public Works Curb Ramp Program $2,900,000 Public Works Vehicle Fuel Island Rehabilitation $510,200 Public Works 58,000 Gross Vehicle Weight (GVW) Dump Truck Replacement $1,721,768 Public Works Solid Waste Collection Vehicles - 3401 & 3405 $220,000 Public Works Solid Waste Collection Vehicles - 3404 & 3410 $375,000 Department Project Title Total City Investment FY2026-FY2030 Capital Improvement Program 280 Page 645 of 1094 Public Works Solid Waste Collection Vehicles -3403 & 3407 $595,000 Public Works Solid Waste Collection Vehicles 3412 & 3413 $375,000 Public Works Solid Waste Collection Vehicles 3411 & 54003 $845,000 Public Works Landfill 3C Project $4,000,000 Engineering Stormwater Management Program $1,000,000 Engineering Bee Branch Creek Gate & Pump Replacement $13,696,697 Engineering Flood Control Maintenance Facility $3,556,000 Engineering Sanitary Sewer Lining Program $1,000,000 Engineering Sanitary Sewer CCTV Inspection, Cleaning, & Assessment $1,000,000 Engineering Cedar and Terminal Street Lift Station and Force Main Assessment and Improvements $1,500,000 Engineering Old Mill Road Lift Station & Force Main - Phase 1 $9,694,574 Engineering Old Mill Road Lift Station & Force Main - Phase 2 $11,968,650 Engineering Track Line Sanitary Sewer Reconstruction $5,000,000 Engineering Catfish Creek Sewershed Interceptor Sewer Improvements - South Fork $13,927,212 Engineering Catfish Creek Sewershed Interceptor Sewer Improvements - Middle Fork $23,800,000 Engineering South West Arterial Interchange Sewer Extension $4,829,838 Engineering Force Main Stabilization $1,700,000 Engineering East - West Corridor Capacity Improvements $1,085,000 Engineering 7th Street Extension to Pine Street $2,000,000 Engineering 14th St Overpass $39,120,000 Engineering US 20 - Northwest Arterial Intersection Operational and Capacity Improvements $5,497,000 Engineering Central Avenue Corridor Streetscape Master Plan Implementation Improvements 11th - 22nd Street $8,170,000 Engineering Public Electric Vehicle Chargers $1,888,760 Engineering Iowa Amphitheater on Schmitt Island $9,641,563 Engineering STREETS Traffic Control Project Phase 1 $250,000 Engineering STREETS Traffic Control Project Phase 2 $282,350 Engineering Traffic Signal Network Communications Program $395,000 Engineering Fiber Infrastructure Management System $275,000 Engineering Federal Building Renovation $7,893,225 Economic Development Greater Downtown Housing Creation Grant Program $3,750,000 Economic Development Workforce Development $1,857,500 Economic Development Downtown Rehab Grant Program $1,000,000 Economic Development Central Avenue Housing Forgivable Loan $750,000 Transportation Transit Vehicle Replacement $3,152,568 Transportation Smart Parking System $780,000 Transportation Parking Ramp Major Maintenance Repairs $7,198,400 Housing Assistance for Homeownership $1,356,151 Housing Washington Neighborhood Home Purchase Program $1,269,896 Department Project Title Total City Investment FY2026-FY2030 Capital Improvement Program 281 Page 646 of 1094 Housing Homeowner Rehabilitation Program $1,325,000 Housing Lead and Healthy Homes Grant $6,000,000 Housing Healthy Homes Production Grant $2,000,000 Planning Historic Preservation Technical Assistance Program $80,000 Communications Office Aerial Orthophotography $252,000 City Manager's Office Community Green House Gas Inventory and Climate Action Planning $100,000 Information Technology City-Wide Computer and Printer Replacements - General Gov $3,323,473 Information Technology City-Wide Computer and Printer Replacements- Business $643,000 Department Project Title Total City Investment FY2026-FY2030 There are many capital projects that have been added to meet City Council Goals and Priorities and address City needs ($54,175,447). Those new projects that appear in the five-year CIP are as follows: Fire Elevator at Fire Headquarters $50,000 Fire Fire Station 6 Roof Replacement $325,000 Parks Parks and Recreation Master Plan $50,000 Parks Rustic Point Park Development $305,000 Parks South Pointe Park Development $200,000 Parks Ash Tree Removal $464,611 Civic Center Marquee Replacement $131,000 Civic Center Standby Emergency Generator Replacement $855,000 Civic Center Recirculating Pump Replacement $37,000 Recreation Bunker Hill #7 Fairway Fencing $15,000 Water 8th Street 20" Transmission Water Main Connection (Jackson to Central)$166,000 Water Admiral Sheehy Drive Water Main Loop $686,400 Water Enterprise Asset Management System Software-Water $150,000 Water Fire Hydrant Stock $615,000 Water Green Alley Water Main Improvements $306,000 Water Greyhound Park Rd Water Main Loop $120,000 Water Highway 20/Dodge St Water Main Relocation - Devon Drive to Concord St $199,000 Water Municipal Services Center Roof Mounted HVAC Replacement Unit $94,500 Water Municipal Service Center Roof Replacement $187,380 Water South Algona 12" Water Main Replacement $729,103 Water Vehicle 4901 Replacement $130,000 Water Vehicle 4908 Replacement $115,000 Water Deere X738 $38,000 Water West End Annexation Phase II $1,994,598 Water Water Treatment Plant and Pump Station Pipe Rehabilitation $150,000 Department New Project Total CIP Capital Improvement Program 282 Page 647 of 1094 Water Water Treatment Plant Third Floor Conference Room $114,000 Water & Resource Recovery Center RAS and Scum Pump Replacement $138,000 Water & Resource Recovery Center WRRC Uninterruptible Power Supply (UPS) Replacement $85,000 Water & Resource Recovery Center UV System Cable & Harness Replacement $50,500 Water & Resource Recovery Center Biogas Chiller Replacement $58,000 Water & Resource Recovery Center WRRC Odor Monitoring System $46,000 Water & Resource Recovery Center Water & Resource Recovery Center Vehicle Replacements $75,000 Water & Resource Recovery Center Water & Resource Recovery Center Electronic Hydraulic Shop Press $13,000 Airport Equipment Storage Building $275,000 Airport Airfield Runway/Taxiway Marking Improvements $412,000 Public Works Electric Vehicle Charging Infrastructure Located at the Municipal Services Center $157,222 Public Works Paver Replacement $610,000 Public Works Landfill Sewer Line Extension $250,000 Public Works Landfill EMS Grant Matching Funds $125,000 Public Works Landfill Portable Litter Fencing $255,000 Public Works Landfill Rolloff Container - Glass $12,100 Public Works Landfill 3C Project $4,000,000 Public Works Landfill Shop Renovation $200,000 Public Works Landfill Minivan Replacement Project $58,583 Public Works Landfill Forklift Replacement $30,690 Public Works Landfill Dozer Replacement Project $593,500 Public Works Landfill 3453 Dozer Rebuild $296,750 Public Works Landfill 3456 Dozer Rebuild Project $256,900 Engineering Enterprise Asset Management System Software $150,000 Engineering Stormwater Management Program $1,000,000 Engineering Pennsylvania Culvert Replacement $150,000 Engineering Levi & Sullivan Intersection Storm Sewer Extension $100,000 Engineering Tanglewood Court Outfall Stabilization $160,000 Engineering Enterprise Asset Management System Software - Sanitary $150,000 Engineering Inflow and Infiltration Inspection Vehicle Replacement $44,000 Engineering Track Line Sanitary Sewer Reconstruction $5,000,000 Engineering Brunskill Road Collector Sewer Reconstruction $600,000 Engineering Kerper Boulevard Lift Station Replacement $402,850 Engineering Catfish Creek Sewershed Interceptor Sewer Improvements - Middle Fork $23,800,000 Engineering Force Main Stabilization $1,700,000 Engineering Green Alleys - Non Bee Branch $350,000 Engineering Safe Routes to School $44,000 Department New Project Total CIP Capital Improvement Program 283 Page 648 of 1094 Engineering Villa Street Retaining Wall Reconstruction $800,000 Engineering Complete Street Elements - Trails, Sidewalks and Signs $32,500 Engineering Enterprise Asset Management System Software - Roadways $150,000 Engineering Parking Lot Materials at Union at Marina Project $50,000 Engineering Public Electric Vehicle Chargers $1,888,760 Engineering Harbor Area Maintenance - Dredging $677,500 Engineering Wayfinding Signage $20,000 Engineering Iowa St Streetlight Replacement Project $138,000 Engineering Enterprise Asset Management System Software - Fiber $150,000 Economic Development Central Avenue Alley Lighting Program $40,000 Communications Office Aerial Orthophotography $252,000 City Manager's Office Community Green House Gas Inventory and Climate Action Planning $100,000 TOTAL $54,175,447 Department New Project Total CIP The Capital Improvement requests that were previously funded in the five-year CIP that are not included in this five-year CIP total $22,091,087. To put these back into the five-year CIP, other projects will need to be removed, property taxes would need to be raised and/or more debt would need to be issued. Of those removed, $1,686,784 are identified as deferred maintenance items, delineated with an asterisks below. The removed CIPs are as follows: Parks AY McDonald Park Pavilion Installation $200,000 Parks Pebble Cove Park Development $305,000 Parks Eagle Point Park - Riverfront Pavilion Restoration $118,000 Parks Ham House Improvements $90,000 Parks Murphy Park - Bennett Pavilion Roof Replacement $165,000 Recreation Flora & Sutton Pool - Operational Projects $360,000 Conference Center Replace Fabric Wall Covering $227,000 * Conference Center Replace Clouds $98,000 Conference Center Parking Island and Venue Landscape Renovations $48,500 Ice Center Locker Room Ventilation Replacement $396,375 Ice Center New Northwest Corner Service Bar $241,500 Ice Center TPO Roof Replacement $181,125 Airport Corporate Hangar Facilities Maintenance $120,000 Airport Taxiway J Improvements $8,585,000 Airport Extend Runway 18/36 $645,000 Public Works Hawthorne St Boat Ramp Repair $388,125 Public Works Backhoe Loader Purchase 3214 $106,605 * Public Works Sign Truck Replacement 3236 $275,000 Public Works Mechanical Sweeper Replacement 4007 $290,466 * Public Works Wheel Loader Purchase 3255 $268,800 Public Works Solid Waste Collection Vehicles 3402 & 54006 $375,000 * Department Existing Project Not Funded Total CIP Capital Improvement Program 284 Page 649 of 1094 Engineering Sanitary Sewer Extensions - Existing Development, Pre-Annexation and Annexation Agreements $1,000,000 Engineering Dubuque Industrial Center Crossroads Sanitary Sewer Extension $521,000 Engineering Abbott & Cottage Sanitary Sewer Reconstruction $322,364 * Engineering Cooper Place and Maiden Lane Sanitary Sewer Reconstruction $481,115 Engineering Harvard Street Sanitary Sewer Reconstruction $264,310 Engineering Hempstead Sanitary Sewer Reconstruction $458,803 Engineering Knob Hill-Duggan Drive Sanitary Sewer Reconstruction $187,779 * Engineering Brunswick Sanitary Sewer $129,000 Engineering King Street Sanitary Sewer Reconstruction $177,570 * Engineering Pavement Rehabilitation - Concrete Street Repair, Mill and Asphalt Resurfacing $3,500,000 Engineering Hillcrest Road Sidewalk $50,000 Engineering Bee Branch Creek Trail: 16th to 9th $675,000 Engineering Trail Planning $100,000 Engineering Port of Dubuque - Security Camera Expansion $20,000 Engineering Traffic Signal Intersection Reconstruction $425,000 Economic Development Low Income Small Business Grant $250,000 Information Technology Network Security Risk Assessment $15,000 Information Technology Mitel Phone Replacement $29,650 Total $22,091,087 Total Deferred Maintenance $1,686,784 Department Existing Project Not Funded Total CIP As is the case every year, there were new projects requested that were not able to be included in whole or in part in this five year CIP ($40,815,326). Of those $10,157,212 are identified as deferred maintenance, delineated with an asterisks below. CIP requests that were not funded include: Police Rescue Vehicle $400,000 Fire Exterior Building Maintenance $500,000 Parks Vehicle Replacement #4491 $60,000 Parks Eagle Point Park - Clear Trees from Bluff $50,000 * Parks Park Office Replace Roof $10,000 * Parks Comiskey Park Replace Roof $30,000 * Parks Hillcrest Park Replace Play Unit $210,000 * Parks Allison Henderson - Replace Roof $15,000 * Parks EB Lyons Carpet Replacement $63,000 Parks Silver Oaks Park Development $305,000 Parks All Parks - Renovate Water Systems $44,000 * Parks All Parks - Replace Trash Cans $140,000 Parks Eagle Point Park - Concrete Improvements $30,000 Department New Project Not Funded Total CIP Capital Improvement Program 285 Page 650 of 1094 Parks Replace Roof on Eagles View Pavilion $45,000 * Parks Eagle Point Park - Replace Roof on Terrace Room $38,000 * Parks Eagle Point Park Rest Room Renovation $110,000 * Parks Flora Park - Pave Wilbright, Pool, Tennis Court, and Slattery Center Park Lots $46,000 * Parks Jefferson Park Playground Replacement $230,000 * Parks Madison Park - Renovate Pavilion $44,000 * Parks Madison Park - Flag Pole $30,000 Parks Murphy Park - Replace Restroom Roof $16,000 * Parks Valentine Park Land Acquisition $120,000 Parks Veterans Park - Pickleball Improvements $50,000 Parks Ecological Restoration $30,000 Parks Street Tree Program $60,000 Parks Resurface Tennis Courts $304,000 * Parks Replace Interpretive Signs $16,000 * Parks Park Drinking Fountains $80,000 Parks Trail Maintenance/Repair $80,000 * Parks Highway 20 Trees/Invasive Removal $55,000 Parks Town Clock Lighting $60,000 Parks Greenhouse Shop Roof Replacement $75,000 * Parks Greenhouse Replace Lexan $100,000 Parks EB Lyons Center - Stain, Patio, Ridge Beam $170,000 * Parks Allison Henderson Storm Water Project $27,500 Parks Parks - Paint Light Poles $20,000 * Parks Chaplain Schmitt Island-Landscaping $50,000 Parks Chaplain Schmitt Island-Entrance Sign $72,500 Parks Eagle Point Park Stone Work $50,000 * Parks Flora Park - Replace Lights on Tennis Courts $112,000 * Parks Forestry Building - Replace Roof $77,000 Parks Ham House Masonry $125,000 * Parks Hilltop Park - Replace Play Unit $289,615 * Parks Marshall Park - Replace Play Unit $228,000 * Parks Miller Riverview Park - Quick Connects for Pedestals $55,000 Parks Miller Riverview Park - Pave Secondary Roads and Concrete Campsites $220,000 * Parks Teddy Bear Park - Play Equipment $197,000 * Parks Maintenance Headquarters - Wash Bay $25,000 Parks Paint Railings $50,000 * Parks Install and/or Replace Park Name Signs $105,000 * Parks Electric Locks - Restrooms $35,000 Parks Parks Fleet Automated Vehicle Location $50,000 Parks Grandview Avenue Landscape Renovation Plan $55,000 Parks North Fork Trail Park Development $305,000 Parks Granger Creek Nature Trail-Asphalt Trail $420,000 Department New Project Not Funded Total CIP Capital Improvement Program 286 Page 651 of 1094 Parks Roosevelt Park Redevelopment $73,000 Parks All Parks - Cameras/Code Blue Phones $230,000 Parks EB Lyons Center - Roof Rehabilitation $60,000 * Parks Eagle Point Park - Renovate Log Cabin $50,000 * Parks Eagle Point Park - Accessible Walkway to the Log Cabin Pavilion $405,000 Parks Eagle Point Park - Trail Project Invasive Remediation $70,500 Parks Eagle Point Park - Light Trolley Line Trail $165,000 Parks Eagle Point Park - Native American Room Restoration $122,000 Parks Eagle Point Park - Develop Wading Pool Replacement Plans $427,000 Parks FDR Park - Native Landscaping Installation $40,000 Parks Usha Park Development $127,000 Parks Valentine Park Pavilion Installation $86,000 Parks Valley High Park - Replace Play Unit $210,000 * Parks Installation of Flag Poles in Community Parks $100,000 Parks Re-landscape Locust Street Connector $30,000 Parks Parks - Irrigation to Planters and Flower Beds $150,000 Parks Greenhouse - Remove Trees on Hillside $25,000 Parks Welcome Sign East $84,000 Parks Welcome Sign North $84,000 Parks Chaplain Schmitt Island Environmental Restoration $430,000 Parks Chaplain Schmitt Island Campground Entrance Enhancement $50,000 Recreation Flora and Sutton Swimming Pools Site Repair/ Replacement $360,000 * Recreation Flora and Sutton Swimming Pools Water Playground Replacements $315,000 * Recreation Flora and Sutton Swimming Pools Renovate Locker Rooms $726,000 * Recreation Sutton Pool - Zero Depth Survey & Remediation $60,000 * Recreation Flora Pool Water Slide Repairs $50,000 * Recreation Bunker Hill Golf Course - Range Project $200,000 Recreation Bunker - Sand Trap Repair/Removal $50,000 Recreation Port of Dubuque - Signage Replacement $20,000 Recreation Marina Dock Fuel & Electrical System Rehabilitation $50,000 * Recreation Comiskey Building Restroom Expansion $112,500 Recreation McAleece Irrigation Renovation $112,500 * Conference Center HVAC Master Control Replacement $119,000 * Conference Center AV Rental Upgrades $61,000 Conference Center Ballroom and Meeting Room Chair Replacements $312,500 Conference Center Paint Exterior Metal $132,000 * Conference Center Sound System Replacement $364,000 Conference Center Elevator Passenger and Freight Car Replacement $253,000 Conference Center Window Replacement $364,000 * Department New Project Not Funded Total CIP Capital Improvement Program 287 Page 652 of 1094 Conference Center Security Camera System $63,000 Conference Center Escalator Replacement $742,000 * Conference Center Loading Dock Leveler Replacement $364,000 * Conference Center Wi-Fi Upgrades $94,000 Conference Center Magnetic Dance Floor Replacement $36,500 * Conference Center HVAC Commissioning $107,000 * Conference Center Furniture and Decor Replacement $126,500 * Conference Center Concrete Restoration, Raising & Caulk $240,000 * Conference Center Paint Interior Rooms $122,500 * Conference Center Overhead Door Replacement $77,500 * Conference Center Replace/Rehab Room Doors $69,000 * Conference Center Fire Panel Replacement $142,000 * Conference Center Support Column Repairs $22,000 * Conference Center Digital Marquee $92,000 * Conference Center Repaint Exhibit Hall Airways $49,000 * Conference Center Paint Bridge $53,600 * Conference Center Window Panel Replacements $19,800 * Conference Center Replace Exterior Building Sign $58,500 * Conference Center Trash Compactor Rehab $34,000 * Conference Center Stage and Riser Replacement $88,000 * Conference Center Wood Bench Replacement $28,000 * Ice Center Water Heater Replacement $36,250 Ice Center American Society of Mechanical Engineers (ASME) Storage Tank Replacement $13,100 Ice Center Air Conditioning Addition $4,270,000 Ice Center Emergency Generator Addition $875,000 Ice Center Security Camera System Replacement $229,000 Ice Center Ice Resurfacer Replacement $172,500 Ice Center Second Sheet of Ice $3,250,000 Library Boiler Exhaust Stack Rehabilitation $171,675 * Library Water Pipe Replacements $121,909 * Library Library Landscaping and Plaza Redesign $103,601 Library Refrigerant Leak Detection System $18,900 Library Bookdrop Waterproofing $52,500 Library Rear Exterior Painting $38,588 Library Server Room Mini Split Replacement $49,980 Airport Terminal Apron Lighting Conversion $43,000 Airport AFFF Transition Plan $258,400 Public Works NW Arterial Shoulder Paving Project $4,100,000 Public Works Steps, Hand Railing and Wall-Top Fencing $65,000 Public Works MSC HVAC Replacement $430,500 Public Works 2727 Off-Road Vehicle $12,000 Public Works 2730 - Portable Jet $40,000 Public Works Vacuum Street Sweeper Replacement - 4002 $375,000 * Department New Project Not Funded Total CIP Capital Improvement Program 288 Page 653 of 1094 Public Works Backhoe Loader 3213 $375,000 Public Works Vacuum Street Sweeper Replacement - 4008 $371,613 * Engineering Schmitt Island Stormwater Rehabilitation $435,000 * Engineering Flow Meters $400,000 * Engineering Dubuque Industrial Center Chavenelle Sewer Extension to Pennsylvania $234,989 Engineering Manhole Inspection Equipment (2 Cameras)$28,000 * Engineering Pavement Rehabilitation - Dowel Bar Concrete Joint Repair $2,112,000 Engineering Guardrail Replacement $40,000 * Engineering Chaplain Schmitt Island Connector Trail $213,000 Engineering Third Street Overpass Decorative Railing Re-Painting Project $125,000 Engineering Railroad Crossing Safety Improvements and Quiet Zone Implementation $592,000 Engineering Riverfront Leasehold Improvements $50,000 Engineering Chavenelle Street Light Replacement $48,000 Engineering City Facility Integrated Access Control and Security System Upgrade $204,000 * Engineering City Hall Annex Renovation $1,160,000 Engineering City Hall First Floor Renovation $465,000 Economic Development Greater Downtown Infill Housing Creation Grant Program $2,500,000 Economic Development Arts & Culture Master Plan Update $100,000 Housing and Community Development Permit, Plans, and Rental Licensing Software $50,000 Communications Office ArcGis Indoor Mapping $150,000 City Manager's Office Renew DBQ: Low-Income Solar Pilot Project $80,000 Information Technology Data Center and IT Office Move Phase 2 $685,936 Information Technology Wireless Access Point and Controller Upgrade $125,370 Information Technology Replacement of Audiovisual Equipment at the JOTC $50,000 Total $40,815,326 Total Deferred Maintenance $10,157,212 Department New Project Not Funded Total CIP The CIP budget is the product of the hard work of a large number of people. It begins with department and division managers and their staff who prepared, ranked and updated the CIP requests. It extends to Boards and Commissions who review staff’s recommendations and make modifications and establish priorities. I wish to express my thanks to all who were involved in preparing the Fiscal Year 2026-2030 version of the City’s Capital Improvement Program. Special thanks go to Chief Financial Officer, Jennifer Larson; Budget Manager Laura Bendorf; Budget/Financial Analysts, Nathan Kelleher and Joe Link; Assistant City Manager Cori Burbach, Executive Assistant, Stephanie Valentine; Administrative Assistant Mia Burbach; Finance Confidential Account Clerk, Kaia Humpal. I am proud of the work completed by City staff and the end-result. I hope after you have had an opportunity to review this document that you feel it is responsive to your priorities. Capital Improvement Program 289 Page 654 of 1094 Attachment 1 FISCAL YEARS 2026-2030 CIP SOURCE OF FUNDS To finance the CIP projects, a variety of funding sources are used. The following table shows the source of funds for each year of the 5 year CIP. Current Revenue Rental Dwelling Rehab Loan Repayments $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 75,000 0.02 % Homeownership Loan Repayments 5,000 5,000 5,000 5,000 5,000 25,000 0.01 % Historic Preservation Loan Repayments 7,000 7,000 5,000 5,000 5,000 29,000 0.01 % Washington Neighborhood Loan Repayments 30,000 30,000 30,000 30,000 — 120,000 0.03 % Insurance and Other Reimbursements 10,000 10,000 10,000 10,000 10,000 50,000 0.01 % Golf Revenue 45,000 40,000 25,000 — — 110,000 0.03 % Subtotal Current Revenue 112,000 107,000 90,000 65,000 35,000 409,000 0.12 % Cable TV — — — — — — 0.00 % Internal Service Funds-City Garage — 197,790 — — — 197,790 0.06 % Landfill Fund 6,680,655 639,401 334,629 730,183 1,202,629 9,587,497 2.73 % Transit Fund 898,232 919,665 650,000 367,608 374,960 3,210,465 0.91 % Parking Enterprise Fund — — 6,374 17,747 — 24,121 0.01 % Solid Waste Collection — 108,450 1,880 — — 110,330 0.03 % Sanitary Sewer Utility 1,946,377 2,900,000 2,100,000 2,238,000 2,822,900 12,007,277 3.42 % Salt Operations Utility — — — — — 0.00 % Stormwater Utility Fees 1,352,000 1,148,520 865,220 1,085,372 1,280,850 5,731,962 1.63 % Water Utility Fund 2,908,280 1,555,195 2,468,211 2,950,541 2,034,800 11,917,027 3.39 % Current Revenue-Utility/Enterprise 13,785,544 7,469,021 6,426,314 7,389,451 7,716,139 42,786,469 12.17 % Fund Balance 590,817 — — 631,752 — 1,222,569 0.35 % Sales Tax 20% 367,511 536,450 701,631 335,000 135,500 2,076,092 0.59 % Sales Tax 30% 4,194,550 4,209,388 4,372,400 4,455,943 4,528,500 21,760,781 6.19 % SRF Bonds-Water Fund Abated 750,000 1,524,715 9,158,146 4,523,812 — 15,956,673 4.54 % SRF Bonds-Sewer Fund Abated 20,079,873 17,796,826 19,938,126 12,413,852 8,170,350 78,399,027 22.30 % SRF Bonds-Stormwater Abated 632,643 820,000 723,500 2,176,143 0.62 % GO Bonds - Solid Waste Collection 220,000 375,000 595,000 375,000 845,000 2,410,000 0.69 % GO Bonds-Sales Tax 20% 2,006,560 3,598,999 1,642,000 294,000 2,414,308 9,955,867 2.83 % GO Bonds-GDTIF 5,500,000 3,100,000 4,800,000 11,250,000 18,600,000 43,250,000 12.30 % Total Construction 34,341,954 31,961,378 41,930,803 34,279,359 34,693,658 177,207,152 50.40 % Community Development Funds 450,000 450,000 350,000 250,000 250,000 1,750,000 0.50 % FAA Total 9,819,500 7,244,995 1,818,000 2,646,000 360,000 21,888,495 6.23 % Healthy Homes Production Grant 550,000 1,000,000 250,000 — — 1,800,000 0.51 % Federal Assistance 11,655,281 5,958,651 5,508,666 15,191,425 13,792 38,327,815 10.90 % Federal Lead Paint/ Healthy Homes/ 1,300,000 2,700,000 1,700,000 — — 5,700,000 1.62 % Federal--STP Funds 690,145 890,145 2,045,072 7,628,236 2,400,000 13,653,598 3.88 % Total Federal 24,464,926 18,243,791 11,671,738 25,715,661 3,023,792 83,119,908 23.64 % Iowa Finance Authority 229,974 229,974 229,974 229,974 — 919,896 0.26 % State Flood Mitigation Grant — — 3,736,000 220,000 — 3,956,000 1.13 % State Airport Grant 757,100 547,500 300,000 300,000 40,000 1,944,600 0.55 % Other State Funding- IDOT & Trails 25,000 1,035,000 25,000 45,000 1,025,000 103,594,002 29.46 % SOURCE OF FUNDS IN CAPITAL BUDGET 2026 2027 2028 2029 2030 TOTAL PERCENT Capital Improvement Program 290 Page 655 of 1094 Total State 1,012,074 1,812,474 4,290,974 794,974 1,065,000 8,975,496 2.55 % DRA-Distribution of Surplus — 237,096 768,152 799,178 694,250 2,498,676 0.71 % Total DRA — 237,096 768,152 799,178 694,250 2,498,676 0.71 % Greater Downtown TIF Payments 16,301,694 4,017,108 3,799,732 3,505,953 2,510,000 30,134,487 8.57 % English Ridge Housing TIF Payments 68,642 — — — — 68,642 0.02 % Rustic Point Housing TIF Payments 107,368 105,463 103,502 101,481 99,400 517,214 0.15 % South Pointe Housing TIF 49,059 49,059 49,059 49,059 49,059 245,295 0.07 % Dubuque Industrial West TIF 30,000 — — 60,000 — 90,000 0.03 % Total TIF Funds 16,556,763 4,171,630 3,952,293 3,716,493 2,658,459 31,055,638 8.83 % Private Participation 1,018,988 309,628 196,994 1,201,989 207,115 2,934,714 0.83 % Total Private 1,018,988 309,628 196,994 1,201,989 207,115 2,934,714 0.83 % Total Private 1,305,090 86,282 88,007 89,768 591,563 2,160,710 0Homeownership Sale Proceeds 100,000 100,000 100,000 100,000 100,000 500,000 0.14 % Ind. Parks Land Sales- Dubuque Industrial Center West 371,500 371,500 371,500 371,500 371,500 1,857,500 0.53 % Total Land Sales 471,500 471,500 471,500 471,500 471,500 2,357,500 0.67 % Special Assessments 40,000 40,000 45,000 45,000 80,000 250,000 0.07 % Total Spec. Assessment 40,000 40,000 45,000 45,000 80,000 250,000 0.07 % GRAND TOTAL $ 91,803,749 $ 64,823,518 $ 69,843,768 $ 74,478,605 $ 50,644,913 $ 351,594,553 100 % SOURCE OF FUNDS IN CAPITAL BUDGET 2026 2027 2028 2029 2030 TOTAL PERCENT Capital Improvement Program 291 Page 656 of 1094 Attachment 2 FISCAL YEAR 2026 - 2030 CIP BUDGET GROUPED BY STATE PROGRAMS The Fiscal Year 2026-2030 Capital Improvement Program totals $351,594,553. The following table summarizes expenditures for each State program by year. FISCAL YEAR 2021-2025 CIP CAPITAL IMPROVEMENT PROGRAM PROGRAM FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 5 YEAR TOTAL PERCENT OF TOTAL Public Safety $ 501,060 $ 2,794,000 $ 1,450,000 $ 0 $ 2,414,308 $ 7,159,368 2.0 % Public Works 33,729,584 17,366,227 17,957,673 35,112,439 11,524,144 115,690,067 32.9 % Culture & Recreation 2,596,611 3,015,000 3,321,678 9,057,322 9,995,000 27,985,611 8.0 % Community & Econ. Devl. 4,503,043 6,312,496 4,418,535 2,386,514 2,046,959 19,667,547 5.6 % General Government 4,061,542 804,853 1,057,733 2,906,820 5,773,750 14,604,698 4.2 % Business Type 46,411,909 34,530,942 41,638,149 25,015,510 18,890,752 166,487,262 47.4 % TOTAL $ 91,803,749 $ 64,823,518 $ 69,843,768 $ 74,478,605 $ 50,644,913 $ 351,594,553 100 % The State Mandated Budget Program Areas and the City Departments/Activities that fall under each of these areas are as follows: Public Safety – Includes Police, Emergency Communication Center, Fire, Disaster Services, Health Services: Animal Control, Public Works: Flood Control, Housing: Code Inspection and Construction Services Public Works – Includes Airport, Public Works, Engineering Health and Social Services – Office of Equity and Human Rights, Health Services, Purchase of Services Culture and Recreation – Parks, Civic Center, Conference Center, Ice Center, Recreation, AmeriCorps, Multicultural Family Center, Library, City Manager: Arts and Cultural Affairs Community and Economic Development - Economic Development, Housing and Community Development, Planning Services, Purchase of Services, City Manager: Office of Shared Prosperity and Neighborhood Support General Government – Engineering: Facilities Management: City Hall/Annex Maintenance/Grand River Center Maintenance, City Council, City Manager, Public Information, Human Resources, Sustainability, City Clerk, Finance,Media Services, City Attorney l, Information Services Business Type – Water, Water Resource & Recovery Center, Parking, Transit, Public Works: Landfill, Refuse, Salt Operations, Engineering: Sewer, Stormwater Capital Improvement Program 292 Page 657 of 1094 Attachment 3 FISCAL YEAR 2026-2030 CIP BUDGET HIGHLIGHTS BY CITY COUNCIL GOALS & PRIORITIES CITY COUNCIL POLICY AGENDA The City Council Policy Agenda includes items that require major policy direction decision and/or funding. It includes the City Council’s Top and High Priorities. VIBRANT COMMUNITY: HEALTHY & SAFE (None) FINANCIALLY RESPONSIBLE, HIGH-PERFORMANCE CITY ORGANIZATION: SUSTAINABLE, EQUITABLE, AND EFFECTIVE SERVICE DELIVERY Priority: City Workforce Retention and Attraction: Direction and Funding Priority classification: High priority CIP projects supporting this Priority: This priority is supported through the proposed FY26 Human Resources and City Managers Office operating budgets as well as the efforts of all City departments. Priority: Police Department Staffing and Hiring: Priority classification: Top Priority CIP projects supporting this Priority: This priority is supported through the proposed FY26 Police operating budget. ROBUST LOCAL ECONOMY: DIVERSE BUSINESSES & JOBS WITH ECONOMIC PROSPERITY Priority: Air Service Future Strategy and Action Plan Priority classification: Top Priority CIP projects supporting this Priority: This priority is supported through the proposed FY24 Airport operating budget and CIPs located on pages 93-100. LIVABLE NEIGHBORHOODS & HOUSING: GREAT PLACE TO LIVE Priority: Comprehensive Study of Fire Stations Locations Staffing Priority classification: High Priority CIP projects supporting this Priority: This priority is supported through the proposed FY26 Fire operating budget and Fire Station Expansion/Relocation CIP located on page 4. Priority: Central Avenue Revitalization Plan: Adoption, Direction, and City Actions Priority classification: High Priority CIP projects supporting this Priority: Central Avenue White Street Corridor Master Plan Design and Implementation Improvements 4th - 22nd Street (205), Greater Downtown Housing Creation Grant Program (259), Downtown Rehabilitation Grant Program (262), Central Ave Housing Forgivable Loan (263), Central Ave Alley Lighting Program (264). SUSTAINABLE ENVIRONMENT: PRESERVING & ENHANCING NATURAL RESOURCES Priority: Catfish Creek Sanitary Sewer Project: Old Mill Road Lift Station Project Priority classification: High Priority Capital Improvement Program 293 Page 658 of 1094 CIP projects supporting this Priority: Old Mill Road Lift Station & Force Main – Phase I (183),Old Mill Road Lift Station & Force Main – Phase 2 (185), Catfish Creek Sewershed Interceptor Sewer Improvements – South Fork (190), Catfish Creek Sewershed Interceptor Sewer Improvements – Middle Fork (192), Southwest Arterial Middle Interchange Sewer Extension (194). CONNECTED COMMUNITY: EQUITABLE TRANSPORTATION, TECHNOLOGY, INFRASTRUCTURE & MOBILITY Priority: Construction of 14th St Railroad Overpass and 16th St Corridor Complete Streets Improvements: RAISE Grant Priority classification: Top Priority CIP projects supporting this Priority: 14th Street Overpass (204). Priority: Street Maintenance/Rehabilitation Program: Direction and Funding Priority classification: Top Priority CIP projects supporting this Priority: Asphalt, Concrete, and Curb Replacement Program (101-104), Engineering Streets CIPs (196-210) DIVERSE ARTS, CULTURE, PARKS AND RECREATION EXPERIENCES & ACTIVITIES Priority: Chaplain Schmitt Island Master Plan Implementation - Next Phase Priority classification: High Priority CIP projects supporting this Priority: Admiral Sheehy Drive Water Main Loop (40), Iowa Amphitheater on Schmitt Island (228) Priority: Parks Maintenance/Refresh Action Plan: Condition Assessment, Needs, Plan Development, Direction and Funding Priority classification: High Priority CIP projects supporting this Priority: Parks & Recreation Comprehensive Master Plan (14) PARTNERSHIP FOR A BETTER DUBUQUE: BUILDING OUR COMMUNITY THAT IS VIABLE, LIVABLE & EQUITABLE (none) Capital Improvement Program 294 Page 659 of 1094 MANAGEMENT IN PROGRESS AND MAJOR PROJECTS: The following are projects that were identified as the 2024 - 2026 Management in Progress and Major Projects by the City Council and are included in the 2026 CIP budget according to one of the Council's goals. 2024 - 2026 Management in Progress Management in Progress are items that were previously a City Council Goal and are now in the implementation phase. These items are included in the existing FY 2025 and proposed FY 2026 Operating budgets unless noted for additional funding. The items are identified under their corresponding City Council Goal: Vibrant Community: Healthy & Safe •911 Center Accreditation •SRO Program Expansion •Public Safety Workforce Diversification •Fire Protective Gear Replacement Year 3 (Frontline Gear) •Equitable Fines and Fees Reform •Traffic and Security Cameras Deployment: Engineering Traffic CIPs (234-248) •Diversity Equity and Inclusion Belong City Action Plan •LPR Cameras •New CAD Computer System •Prepared Live – Paid Version •Fire Equipment (6-8, 12-13) •Public Safety Radios Upgrade •Community Risk Reduction (AED Program (slips and falls, mental health response, elderly resources) Strategic Plan •Opioid Misuse Planning and Response in conjunction with Dubuque County •Animal Control Ordinance Update •Public Safety Answer Point Back-Up •Veterinarian Services Contract •Pet Licensing Systems (including in-house or outsourcing) •Public Health Preparedness Emergency Response Plan Update •Law Enforcement Mental Health and Wellness Check-Ins Financially Responsible, High Performance City Organization: Sustainable, Equitable, and Effective Service Delivery •Organizational Culture Continuous Improvement •Rightsizing Departments – Services and Staffing •Future City Employee Career Development Program(s) •City Legislative Lobbying/Advocacy Agenda 2025 •Enterprise Resource Planning (ERP) Software Implementation •ERP Software Implementation ◦Employee Expense ◦Financial Asset Management ◦Employee Self-Service •HRIS Implementation ◦Selection ◦Implementation Capital Improvement Program 295 Page 660 of 1094 •CRM Service Model: Implementation •Data Governance: Direction and Funding •City Bond Rating: Updated Credit Rating Fall 2024 and Bond Sale •City-Wide Safety Program •Debt and Investment Management Software •Banking Services •Cyber Security Enhancements: Training and Tool •Leisure Services Director Replacement •Adopt A Spot/Volunteer Management Hub Site GIS Application Robust Local Economy: Diverse Business & Jobs with Economic Prosperity •Business Incentives Policy/Processes: Review and Refinement •Office of Shared Prosperity/Poverty Reduction Plan: Update Report •Flexsteel Site for Redevelopment: Pump Agreement •Minority-, Women-, Disabled-, and LGBT Business Enterprises (MWDBE) Procurement Policy •MWDBE) Procurement Policy, Process Revision and Recruitment •Port New Hotel Development: Closing •Comprehensive Hotel Attraction/Incentive Policy and Strategy –Port and Rehabilitation •Grand Harbor Hotel Transition to New Ownership: City Actions Livable Neighborhoods: Great Place to Live •Unified Development Code Update •Neighborhood Associations Development: Public Awareness •NSPIRE Implementation from HQS for the HCV Program •HOTMA Implementation for HCV Program • Terminus for all Permits, Data Governance and Storage: Completion • Permitting and Inspection Software Implementation: Completion • New Housing Development Support: Report (Starts and Additional Permits) • Code Compliance/Enforcement Enhancements: Sustainable Environment: Preserving & Enhancing Natural Resources •Water Distribution and Treatment System Master Plan: Budget Decision FY 25 •Trees Planting Program Enhancement: Report Options, Direction and City Actions (Planting: 5,280 trees) •Water Resource Recovery Plant – Odor Abatement Implementation (90) •Sewer System Infrastructure Asset Master Plan: Analysis Completion and Update Report (158) •Pollinator Habitat in Park System Implementation: Complete Natural Resources Plan Actions (20) •Electric Bus Implementation: Acquisition (1) •Emerald Ash Borer (23) •Air Quality EPA Path Forward: Update Reports •Consumer Confidence Report 2024: Creation and Publication •Waste Temporarily Stored in the Open-Air excess Flow Tank: Removal and Disposal •Vacant Maintenance Supervisor Position: Evaluation and Direction •HVAC Mini-split System Installation: Completion •Fats, Oils, and Grease Program: Software Update Implementation Capital Improvement Program 296 Page 661 of 1094 •WRRC State Certified Lab Expanding the Testing Capability: Completion Connected Community: Equitable Transportation, Technology, Infrastructure & Mobility •Traffic on Central Avenue/White Corridor Short Term Action (209) •Parking System and Technology Master Plan: Work Session (269) •STREETS Program: Phase 1 – Arterials Design (245-246) •Community Broadband Project – Fiber-to-the-Home: Phase 2 Funding Sources (255) •Smart Parking and Mobility Study: Parking Implementation (269) •Jule Services Study Planning Grant: Selection of Consultant and Completion Diverse Arts, Culture, Parks, and Recreation Experiences and Activities •Chaplain Schmitt Island Amphitheater Development: Implementation Direction and Funding (229) •Comiskey Park Upgrades – Phase 2 Park Renovation Complete (16) •Eagle Point Park Enhancements/Reinvestment: Challenge Grant (17) •Comprehensive Parks Master Plan (15) •5-Flags Facility Capital Improvement Project (24-28) •Arts and Culture Master Plan: Revised •Five Flags Civic Center Management: Selection •Historic Millwork District Park Plan •Culture Definition: Report •Cultural Experiences and Programming: Report Partnership For A Better Dubuque: Building Our Community That Is Viable, Livable, & Equitable •Succession Plan for Intergovernmental Relations Position: Development •Community Impact Department: Mission/Vision •City Life in Marshallese or Other Language: Implementation •Equitable Fine and Fee Work Plan Major Projects Major Projects are projects that are underway and budgeted. Staff is implementing and providing updates to City Council. These items are included in the existing FY 2025 and proposed FY 2026 Operating budgets unless noted for additional funding. The items are identified under their corresponding City Council Goal: Vibrant Community: Healthy & Safe •Fire Headquarters Bunk Room Remodel, HVAC, and Fire Administration Office Update: Engineering Design (1) •Burn Tower Improvement Project: Construction Financially Responsible, High Performance City Organization: Sustainable, Equitable, and Effective Service Delivery •City Hall and Annex Project: Design Capital Improvement Program 297 Page 662 of 1094 •Federal Building Upgrade Project: Completion •Multicultural Family Center Project: Completions •City Data Center Project– Phase 1: Completion •City Facility Integrated Access Control •Federal Building HVAC System Condition Assessment and Long-term Replacement Plan: Completion Robust Local Economy: Diverse Business & Jobs with Economic Prosperity •Dubuque Brewing & Malting Building Project: Deconstruction Completion and Site Remediation Enforcement Action •River Boat Docking Project: Environmental Study and Temporary Dock Installation (227) Livable Neighborhoods: Great Place to Live •(none) Sustainable Environment: Preserving & Enhancing Natural Resources •Bee Branch Stormwater Pumping Station Project (16th Street/Kerper Pumping Station) (161) •SCADA Overhaul: Water (54, 247) •Lead Water Lines Replacement (Grant Dependent) (53) •Auburn and Custer Water Main, Sanitary Sewer, Street Reconstruction Project: Construction (66) •Green Alley Project: Construction (46, 211) •42-inch Diameter Sanitary Sewer Force Main Stabilization Project (USACE partnership): Completion (196) •Cedar and Terminal Street Lift Station and Force Main: Bid (182) •Tamarack Sanitary Sewer Extension Project: Construction •Twin Ridge Sanitary Sewer Extension and Lagoon Abandonment Project: Construction •Granger Creek Lift Station Improvements: Construction (184) •Old Mill Road Lift Station & Force Main: Construction (184-186) •Grove Terrace Sanitary Sewer Reconstruction: Construction (66) •Advancing New Deep Well No. 11 (as part of PFAS Remediation Plan) (56) •North Cascade/Southwest Arterial Water/Sewer Main Extension from Edval Lane to North. English Mill Road): Construction •City-Wide Fiber Project – Water Department Pump, Stations, Tanks and Towers: Completion (251, 253) •Tamarack Park/HWY 61 Water Main Extension project (per development agreement.): Construction •Deep Well No. 7 Rehabilitation: Completion •Creek Crossing Restoration Project: Construction •High Strength Waste Receiving & Storage Project Connected Community: Equitable Transportation, Technology, Infrastructure & Mobility •East-West Corridor/Roundabout Policy/Projects: Preliminary Design (199) •Highway 20/Northwest Arterial Intersection Project: (IDOT Funding FY 26) (208) •SW Arterial ITS Project: Construction Completion •Connection to Data Center Project: Phase 2 Construction Completion Capital Improvement Program 298 Page 663 of 1094 •Building Connection to Additional City Locations Project: Completion •Taxiway Alpha Construction Project – Phase 2: Completion (93) •Terminal Solar Photovoltaic Project: Completion •General Aviation Apron Reconstruction Project: Construction (94) •Bee Branch Trail - Phase 1 Project: Completion, Significant Audit Preparation and Project Close Out •Chaplain Schmitt Federal Community Project Trail Grant Project: Construction and Audit •Heeb Street Reconstruction Project – South of Kaufmann Avenue •2024 Pavement Marking Project: Completion (197, 222) •Wildwood Drive Bridge Replacement: Design (207) •Relocation of Fiber Optics on Bridge (Highway 20) Diverse Arts, Culture, Parks and Recreation Experiences and Activities •Eagle Valley Subdivision Park: Completion •English Ridge Subdivision Park: Completion •Westbrook Park: Completion •Jackson Park Restrooms/Amenities •ImOn Arena – Dehumidification, HVAC, Generator Set System Project •Design Dehumidification •Bid and Construction •HVAC/Generator (Budget Decision FY 26) Partnership For A Better Dubuque: Building Our Community That Is Viable, Livable, & Equitable (None) Capital Improvement Program 299 Page 664 of 1094 Attachment 4 SOURCE OF FUNDS AND IMPORTANT DETAILS The Fiscal Year 2026-2030 CIP presents a financial plan that reflects a $285,870 general fund property tax levy supported annual debt service for the FY 2010 purchase of a replacement pumper truck ($1,035,000) and the FY 2016 franchise fee litigation settlement judgment bond ($2,800,000). No other borrowings included in the Fiscal Year 2026-2030 CIP utilize a debt service levy. It is anticipated that other borrowing from non-utility funds can and will be minimized by using other sources of funds such as future DRA annual distributions of operating surplus and sales tax revenue. The following important details are about the source of funds: UTILITIES Stormwater The Stormwater Utility was formed on July 1, 2003, to update and expand the City’s aging infrastructure, comply with the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit, and implement the various elements of the 2001 Drainage Basin Master Plan (amended in 2013), which outlined improvements in both the Catfish Creek and Bee Branch watersheds. The City has been able to garner support from local, state, and federal partners with over $163 million in outside funding to help offset the cost of the overall $254 million project. Since 2001, the City has made steady progress on the various phases of the project. When the City Council adopted Ordinance 21-12 (passed and approved on March 7, 2012), they established that the stormwater utility fee would increase to $9.00 per month on July 1, 2016 in order to fund the operational and capital costs of the public stormwater management system, including improvements such as the Bee Branch Creek Restoration Project. But later in 2012, the Iowa General Assembly created the Flood Mitigation Program which provides funding for flood mitigation projects undertaken by local governments such as the City of Dubuque. Managed by the Iowa Flood Mitigation Board, the funding source established involves taking a portion of the incremental growth of State sales tax revenue collected within a city and diverting from the State General Fund to cities approved for the funding. Having updated the Drainage Basin Master Plan in the fall of 2013, which outlined the improvements associated with the 12-phase Bee Branch Watershed Flood Mitigation Project, the City was successful in securing $98.5 million in State sales tax increment funding. With the infusion of funding, the City Council adopted Ordinance 16-14 (passed and approved on March 5, 2014) establishing that the stormwater utility fee did not reach $9.00 per month until July 1, 2021, five years later than later than previously scheduled. The City has been able to provide stormwater management services within the rate structure established by Ordinance 16-14. Due to the uncertain economic impacts of the COVID-19 pandemic, there was no increase in FY2021 as part of the City's Coronavirus relief response. With some minor adjustments to planned Capital Improvement Program projects, reducing some budgets and delaying a few others, the City was able to delay the planned increases for a year such that the rate did not reach $9.00 per month until FY 2023, six years later than previously scheduled. The recommended Fiscal Year 2026-2030 Capital Improvement Program Budget includes $13,696,697 for the Flood Mitigation Gate & Pump Replacement as part of the Bee Branch Creek Restoration Project (Phase 5 of the Bee Branch Watershed Flood Mitigation Project). Additional funding was provided for the project in the Fiscal Years 2024 and 2025 Capital Improvement Program Budgets. Capital Improvement Program 300 Page 665 of 1094 The recommended Fiscal Year 2026-2030 Capital Improvement Program Budget includes $3,556,000 for construction in Fiscal Year 2028 for the Flood Control Maintenance Facility as part of the Bee Branch Creek Restoration Project (Phase 9 of the Bee Branch Watershed Flood Mitigation Project). Additional Funding was provided for the project design in the Fiscal Year 2025 Capital Improvement Program Budget. The recommended Fiscal Year 2026-2030 Capital Improvement Program Budget includes $1,120,000 for the North End Storm Sewer Improvements as part of the Bee Branch Creek Restoration Project (Phase 10 of the Bee Branch Watershed Flood Mitigation Project). Fiscal Year 2026 will be the nineteenth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low-to-moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2026 Stormwater User Fee is proposed to increase from $10.50 per SFU to $11.03 per SFU, a 5.00% increase. Rate Per Single Family Unit (SFU) Fiscal Year 2021 - Adopted Per Ordinance 21-20 $ 8.29 Fiscal Year 2022 - Adopted Per Ordinance 10-21 $ 8.85 Fiscal Year 2023 - Adopted Per Ordinance 13-22 $ 9.00 Fiscal Year 2024 - Adopted Per Ordinance 14-23 $ 10.00 Fiscal Year 2025 - Adopted Per Ordinance 14-24 $ 10.50 Fiscal Year 2026 - Recommended $ 11.03 Capital Improvement Program 301 Page 666 of 1094 Water Water revenue represents a portion of the monthly water bill that goes for maintenance, repair, replacement and improvement of the Eagle Point Water Plant and water distribution system on a pay-as- you-go basis for all projects except the major extensions. The annual payment to the depreciation fund in Fiscal Year 2025 is $60,000. The Fiscal Year 2026-2030 CIP anticipates $2,908,280 in Fiscal Year 2026, $1,555,195 in Fiscal Year 2027, $2,468,211 in Fiscal Year 2028, $2,950,541 in Fiscal Year 2029, and $2,034,800 in Fiscal Year 2030. Water State Revolving Fund Loans will be used to finance sewer projects in FY 2026-2030 as follows: $750,000 FY 2026; $1,524,715 FY 2027; $9,158,146 FY 2028; $4,523,812 FY 2029; and $0 FY 2030. The debt service related to the total $15,956,673 State Revolving Fund Loans over the 5-years will be paid from water fees and offset by reduced payments to Depreciation (Construction Fund). The State Revolving Fund Loans support West End Annexation Study and Implementation Phase I, Tamarack Park Drive/Wood Gate Drive Frontage Road Water Main Extension, Source Water PFAS Reduction Project Granular Filter, Water Main Replacements - Consent Decree, Third Pressure Zone Connection (from Tanzanite Dr to Olympic Heights Pump Station), Highway 20/Dodge St. Water Main Relocation - Devon Drive to Concord Street, Green Alley Water Main Improvements, Water Storage Rehabilitation Program, Water Main Replacements - Streets, and West End Annexation Phase II. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager’s Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager’s Office, Legal, Planning, Economic Development, City Clerk’s Office and Workforce Development recharged expenses based upon each enterprise fund’s percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager’s Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Water Fund’s share of the City’s administrative overhead is 18.75%. In FY 2026, the Water Fund will support 17.99% of administrative overhead. The water fees in FY 2026 are recommended to increase 9.0%. Capital Improvement Program 302 Page 667 of 1094 Sewer Sewer revenue represents a portion of the monthly sewer bill that goes for the maintenance, repair, replacement and improvement of the Water & Resource Recovery Center Plant; lift stations, and sewer lines on a pay-as-you-go basis. The annual payment to the depreciation fund in Fiscal Year 2025 was $1,600,000. The Fiscal Year 2026-2030 CIP anticipates $1,946,377 in Fiscal Year 2026, $2,900,000 in Fiscal Year 2027, $2,100,000 in Fiscal Year 2028, $2,238,000 in Fiscal Year 2029 and $2,822,900 in Fiscal Year 2030. Sanitary Sewer State Revolving Fund Loans will be used to finance sewer projects in FY 2026-2030 as follows: $20,079,873 FY 2026; $17,796,826 FY 2027; $19,938,126 FY 2028; $12,413,852 FY 2029; and $8,170,350 FY 2030. The debt service related to the total $78,399,027 State Revolving Fund Loans over the 5-years will be paid from sewer fees and offset by reduced payments to Depreciation (Construction Fund). The State Revolving Fund Loans support such projects as Fore main Stabilization, Catfish Creek Sewershed Interceptor Improvements (South Fork and Middle Fork), Cedar and Terminal Street Lift Station and Force Main Improvements, South West Arterial Middle Interchange Sewer Extension, Old Mill Road Lift Station & Force Main Phases (1 and 2), Outfall Manhole Reconstruction, Track Line Sewer Reconstruction, W&RRC Plant Nutrient Reduction Improvements, W&RRC Industrial Control Upgrade, W&RRC Headworks Bar Screen Replacement, RAS and Scum Pump Replacement. The sewer fees in FY 2026 are recommended to increase 9.0%. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager’s Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager’s Office, Legal, Planning, Economic Development, City Clerk’s Office and Workforce Development recharged expenses based upon each enterprise fund’s percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager’s Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Sanitary Sewer Fund’s share of the City’s administrative overhead is 18.75%. In FY 2026, the Sanitary Sewer Fund will support 18.46% of the administrative overhead. Capital Improvement Program 303 Page 668 of 1094 Parking Parking revenue represents three primary sources: (a) the balance of prior year depreciation funds set aside for the maintenance and repair of parking ramps; (b) future payments to the depreciation fund for repair and maintenance of the parking system (there are no budgeted payments to the depreciation fund in future years due to using existing cash balance); and (c) interest income. A $5.2 million Greater Downtown TIF borrowing is anticipated in FY 2026-2030 for parking ramp major maintenance. New debt service will be paid from the Greater Downtown TIF fund. The Greater Downtown TIF will support parking related debt in the downtown as follows: $2,012,375 in FY 2026; $2,014,000 in FY 2027; $2,010,750 in FY 2028; $2,012,625 in FY 2029; and $2,013,875 in FY 2030. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager’s Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager’s Office, Legal, Planning, Economic Development, City Clerk’s Office and Workforce Development recharged expenses based upon each enterprise fund’s percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager’s Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Parking Fund’s share of the City’s administrative overhead is 6.93%. In FY 2026, the Parking Fund will support 2.84% of the administrative overhead. Capital Improvement Program 304 Page 669 of 1094 Solid Waste Collection Activities Solid waste collection activities revenue represents a portion of the monthly refuse bill that goes for the purchase of solid waste collection vehicles. The annual payment to the depreciation fund in Fiscal Year 2025 was $325,000. The Fiscal Year 2026-2030 CIP anticipates $— in FY 2026, $108,450 in FY 2027; $1,880 in FY 2028; $— in FY 2029; and $— in FY 2030. The Solid Waste Collection will support solid waste related debt for solid waste collection vehicles as follows: $220,000 in FY 2026; $375,000 in FY 2027; $595,000 in FY 2028; $375,000 in FY 2029 ; $845,000 in FY 2030. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager’s Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager’s Office, Legal, Planning, Economic Development, City Clerk’s Office and Workforce Development recharged expenses based upon each enterprise fund’s percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager’s Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Solid Waste Fund’s share of the City’s administrative overhead is 18.75%. In FY 2026, the Solid Waste Fund will support 18.64% of the administrative overhead. The solid waste collection fees in FY 2026 are recommended to increase 5%. Capital Improvement Program 305 Page 670 of 1094 GENERAL FUND The current revenue amount of $409,000 (0.12% of CIP Total) during the five-year period represents $110,000 in golf funds for improvements to the Bunker Hill Golf Course, $29,000 in Historic Preservation Loan repayments, $75,000 in Rental Dwelling Rehab Repayments, $120,000 in Washington Neighborhood Loan Repayments, $50,000 in insurance and other reimbursements, and $25,000 in repayments to the Homeownership Loan Program. LOCAL OPTION SALES TAX (LOST) The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 20 percent of the proceeds would be used for: (a) the upkeep of City-owned property such as sidewalks, steps, storm sewers, walks, curbs, traffic signals and signs, bridges, and buildings and facilities; (b) transit equipment such as buses; (c) riverfront and wetland developments; and (d) economic development projects. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as “Sales Tax (20%)” totals $2,076,092 and represents 0.59% of the total CIP. The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 30 percent of the proceeds would be used to: (a) reduce street special assessments by at least 75 percent; and (b) maintain and repair streets. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as “Sales Tax/Street Projects (30 percent)” and totals $21,760,781, or 6.19% of the total CIP. GAMING DRA payments represent 0% in FY 2026 of the projected gaming taxes, rent, and admissions from the race track, slots and riverboat operations ($0 or 0.00% of the total CIP) over the five-year period. When practical in future years, additional revenues will be moved to capital from operating. To the extent that there is any revenue shortfall in future years, capital projects will be eliminated or deferred. DRA distribution revenue projections ($2,498,676 or 0.71% of the total CIP) are discounted consistent with the adopted budget guidelines by 5% in FY 2028, 10% in FY 2029 and 15% in FY 2030. In Fiscal Year 2026, all DRA Distribution is diverted to the operating budget instead of being used in the capital budget. This was also done in Fiscal Year 2025 and 2024, which is a change from past practice. On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1% of coin-in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, the distribution of net profit is now split three ways between the City, charities, and the Schmitt Island Master Plan Implementation from a two-way split between the City and charities. The amended lease has an expiration date of December 31, 2055. In calendar year 2024, the DRA saw a decline of -4.85% in gross gaming revenues, while Diamond Jo experienced a slight increase of +1.61% compared to 2023. The Dubuque market in 2024 was approximately $122.6 million annually, showing a decrease of -0.8% from the $123.6 million market in 2023. This decline was expected due to construction disruptions throughout the year. The DRA's gross gaming revenue was significantly impacted by redevelopment work on the property, which continued throughout the year. Additionally, the main highway leading to our facility was closed for extended repairs. An exit ramp that was initially scheduled for a brief closure ended up being closed for several months, further affecting traffic and access. Despite these challenges, the DRA saw growth in other areas in 2023, including food and beverage sales, as well as new revenue from the opening of the Island Social (Family Entertainment Center) and the new banquet event space. However, total gross revenue for the DRA in 2024 was down -4.2% compared to 2023. Capital Improvement Program 306 Page 671 of 1094 FEDERAL FUNDING Community Development Block Grant (CDBG) The Fiscal year 2026-2030 CIP anticipates that Community Development Block Grant (CDBG) funds will be $450,000 in FY 2026; $450,000 in 2027; $350,000 in FY 2028; $250,000 in FY 2029; and $250,000 in FY 2030 (0.50% of the total CIP). CDBG is budgeted at the same funding level as FY 2025. Federal Aviation Administration (FAA) The FAA funding of $21,888,495 (6.23% of the total CIP) provides 90 percent match on most airfield related improvements. The Fiscal Year 2026-2030 budget includes Reconstruct Taxiway A, Terminal Building Modifications, Taxiway D Extension, Westside D Extension, Reconstruct General Aviation Apron, and Update Airport Pavement Management System. Federal Lead Paint/Healthy Homes Grant (1.62% of Total CIP) The Fiscal year 2026-2030 CIP anticipates that Lead Paint/Healthy Homes Grant funds will be $1,300,000 in FY 2026; $2,700,000 in 2027; $1,700,000 in FY 2028; — in FY 2029; and — in FY 2030 (1.62% of the total CIP). Healthy Homes Production Grant (0.51% of Total CIP) The Fiscal year 2026-2030 CIP anticipates that Healthy Homes Production Grant funds will be $550,000 in FY 2026; $1,000,000 in 2027; $250,000 in FY 2028; — in FY 2029; and — in FY 2030 (0.51% of the total CIP). Federal Assistance Federal Assistance funding of $38,327,815 (10.90% of the total CIP) includes EDA, EPA, Infrastructure grants, and other federal grants. The Fiscal Year 2026-2030 budget includes Bee Branch Creek Gate and Pump Replacement, Public Electric Vehicle Chargers, and 14th Street Overpass, . Federal STP Funds Federal STP Funds funding of $13,653,598 (3.88% of the total CIP) includes DMATS funds for 14th Street Overpass, and US Highway 20 - Northwest Arterial Intersection Operational and Capacity Improvements. STATE FUNDING Road Use Tax Road Use Tax Funds (RUTF) of $0 (0.00% of the total CIP) over five years represents the balance of annual payments not required for support of the operating budget and funds that had been reserved to finance high priority transportation projects. The Iowa Department of Transportation (IDOT) provides annual projections on the amount of RUTF the City of Dubuque will receive over the next five years based on a per capita amount. The State Road Use Tax Fund consist of revenues from fuel tax, vehicle registration fees, use tax, driver’s license fees and other miscellaneous sources and is distributed to cities on a per capita basis. It should be noted that in FY 2010, the Iowa Department of Revenue increased Road Use Tax Funds (RUT) as a result of higher vehicle registration fees passed into law in 2008. The gas tax was increased ten cents beginning in February 2015. The city is estimated to receive $44,519,265 for FY 2026-2030. Sales Tax Increment Revenue The City secured a $98.5 million grant through the State of Iowa Flood Mitigation program funded by 70% of the sales tax increment revenue received from the State of Iowa’s 5% portion of sales tax received from sales in the City of Dubuque. This revenue will fund the debt service payable on Sales Tax increment Revenue bonds and Iowa Finance Authority State Revolving Fund Loans issued for the Flood Mitigation project known as the Bee Branch Watershed Project. In the five year capital program, $3,956,000 of sales tax increment revenue will fund pay-as-you-go projects related to the Bee Branch Watershed project. Capital Improvement Program 307 Page 672 of 1094 Other State Grants (0.61% of Total CIP) State funding includes Iowa Department of Transportation Funding for street projects and trails and Historic Preservation Surveys and Regulations of $2,155,000 are anticipated over the five-year program. State transit funding includes $37,492 over the five-year program for bus stop improvements. Iowa Finance Authority funding of $919,896 is anticipated over the five-year program for the Housing Department’s Housing Trust Fund to provide permanently affordable housing or assistance to nonprofit organizations providing the same. TAX INCREMENT FINANCING (TIF) Dubuque Industrial Center West TIF District In FY 2006 and 2007, Tax Increment Financing (TIF) funds were committed towards abatement of the 20 year G.O. Bond issue for a Dubuque Industrial Center West (DICW) expansion and Chavenelle Road extension project, thereby delaying payback to the general fund for prior year development costs. In FY 2007, the TIF assessed values increased, allowing for additional increment for projects and cost recovery to continue. In FY 2017, the TIF assessed values increased again from a commercial 12% state equalization order. The FY 2026-2030 CIP includes $1,857,500 in land sale proceeds to provide funding for the new campaign by the Greater Dubuque Development Corporation to improve the economy in Dubuque, $60,000 for a second dog park planning, and $30,000 for native plantings. Annexation Initiatives As annexation and development continues, the City has taken the following initiatives to provide services to annexed areas: Additional Police Officers (Operating Budget) With the Police Department’s crime strategy, Territory Accountability Design, in full implementation, the department projected the need to increase Dubuque’s current six patrol territories to seven as new areas of the city are developed. To add a seventh territory, five additional police officers were needed. Partly in response to this need, the Police Department developed a Sworn Officer Plan which proposed the addition of 15 sworn police officers over a five-year period, with the first five (four Police Officers and one Police Corporal acting as a Section 8 Investigator) approved in December 2007, four more were approved in FY 2009, three more were approved in FY 2010, two more were approved in FY 2011 and one more was approved in FY 2012. The plan’s staff increases created sufficient staffing to establish an additional patrol territory. In FY 2019, an additional sworn police officer was added, an existing position was promoted to Captain and one Corporal position was eliminated in order to create a Specialty Unit Commander. The Fiscal Year 2020 budget approved the expansion of the Dubuque Police Department School Resource Officer Program. To spread the expenses over time, three SRO's were to have been added over three consecutive years: Fiscal Year 2020, Fiscal Year 2021, and Fiscal Year 2022 budget. However, the expansion was frozen in FY21 due to the pandemic causing the final position and was added in FY23 instead of FY22 as originally planned. The Dubuque Community School District (DCSD) will still gradually pay 50% of the salary of the existing SRO Lieutenant, and the DARE Officer. This DCSD payment will be implemented in increments of 45% of 50% reimbursement in year 1, or Fiscal Year 20, 75% of 50% reimbursement in year 2, or Fiscal Year 21, and 100% of 50% reimbursement in year 3, or Fiscal Year 22. In Fiscal Year 2024, two Crisis Intervention Team Officers were approved. In late 2024, the Precision Policing Center (PPC) was established. It is expected to serve as a critical "force multiplier" for the department, supporting rapid police response, informed decision-making, and proactive crime prevention. This is also supporting officer safety. The PPC is staffed by five non-sworn (civilian) employees in three roles: three Precision Policing Center Technicians, one Crime Analyst, and one Criminal Computer Forensics. Capital Improvement Program 308 Page 673 of 1094 Fire Station and Additional Firefighters/Paramedics An additional west end fire station is currently projected to be designed in FY 2030 and built in FY 2031. In fact, this might not be an additional station but might be a relocation of the Grandview fire station. This station would be approximately 10,000 square feet and house two response apparatus, plus storage for other reserve units. The City of Dubuque currently has an annexation study and not an annexation plan. However, addition of this fire station and associated ambulance and firefighting response capability and capacity positions the City well to develop an annexation plan and begin the process of annexation in the future. The City Development Board, that approves annexation expects services to be provided within 3 years of annexation. For a new station, operating costs include insurance, utilities, equipment, maintenance, and furniture. In FY2020, one (1) new employee was added, one (1) additional new employee was added in FY 2021 as well. The position that was to be added in FY2022 was delayed. In FY2023, 4 new employees were added. In FY2024, one new firefighter was added. In FY 2025 an additional EMS Captain and an additional EMS Bureau Chief were approved, and the additional employees may be added in future years. In addition, 3 firefighter/paramedic positions were added in FY2023 to provide one additional staff member on each of the three duty shifts. The additional ambulance for the additional fire station was purchased in FY2023. The current minimum staffing per shift is 22, with 28 personnel assigned to cover leave. The additional personnel will reduce the need for overtime as each shift will have more positions available to cover vacations and other leave. Additional Snow Plow Drivers and Snow Plow Route (Operating Budget) Dubuque’s expansion also increased the number of streets and roads that must be maintained by the City’s Public Works Department. In order to maintain the current level of street maintenance, street cleaning, and snow and ice control to all areas of the city, the Public Works Department was approved for the addition of a snow plow driver in FY 2009 and another is expected to be requested in a future year. Two drivers are needed to staff a route 24 hours a day in a snow event. The Public Works Department plans to create another snowplow route with these two employees as annexation and development dictates. In the warm months, this position will be assigned to the Parks and Recreation Department to maintain City parks and landscaping in the Washington Neighborhood, Port of Dubuque, Iowa Street and the Locust Street connector. In Fiscal Year 2009, the Public Works Department also began using Refuse, Recycling and Yard Waste Collection employees at the end of their collection routes and on overtime to assist in snow removal duties. The City has also developed a plan to use personnel and equipment from other City departments to go from 22 pieces of snow removal equipment to 32 pieces of snow removal equipment in a snow storm that exceeds 5 inches. With the recommendation to eliminate full-time positions in the Engineering Department and create one part-time position, there will be less opportunity to supplement the snow plowing effort. Water and Sanitary Sewer Service The City is in the process of extending sanitary sewers and water service into new development areas or recently annexed areas as part of pre-annexation agreements and replacing undersized sanitary sewers along with new lift stations. Requests have been received for sanitary sewer and water service on North Cascade Road near Highway 20 and for water service further North on John F. Kennedy Road. In 2003, a new water main was activated from Highway 20 north on the east side of the Northwest Arterial to John F. Kennedy Road then west to a new 1.25 million gallon water tower located at the Dubuque Soccer Complex. By constructing this tower and with this water main extension in the fourth pressure zone of the City's water distribution system, it allowed growth to take place for residential, commercial and industry to the west of the community. Capital Improvement Program 309 Page 674 of 1094 To date, both sanitary sewer and water service have been extended through the Dubuque Industrial Center West, along Seippel Road to the north edge of the Callahan subdivision. Additional funds are available to extend water and sewer service to the 643 acres annexed and to other areas under consideration for annexation. The City has spent in excess of $2 million to replace much of the North Fork Catfish Creek Sanitary Sewer Line. The City extended the Granger Creek Interceptor sewer and the public water main from the Technology Park South along highway 151/61 to the north side of the Dubuque Regional Airport. The Granger Creek sanitary sewer and water main extension provided immediate sanitary sewer and water services to the Dubuque Regional Airport and portions of the annexation areas that are adjacent to the highway 151/61 corridor. Greater Downtown TIF District This district was formally the Downtown and Ice Harbor TIF districts but now have been combined to the Greater Downtown TIF district. Many projects, which are City Council priorities, are able to move forward due to the availability of Greater Downtown TIF revenue due to continued growth to further sustain a rejuvenated downtown and port of Dubuque. The following are projects included in the FY 2026-2030 CIP: Reimagine Comiskey (page 16) – This project ($1,697,000) provides for funding related to the park development for Phase 2 of Re-Imagine Comiskey. Phase 2 includes additional basketball courts, a large turf field, parking lot, additional sidewalks, lighting and pavilions. Washington Community Gateway (page 21) – This project ($99,000) provides for developing the vacant lot at 1401 Elm Street as a Washington Community Gateway. The city purchased this property in 2014. The structure has been removed and the lot is currently grass. This project would provide for such amenities as three flag poles, park lighting, security cameras, a welcome sign to the Washington neighborhood and a drinking fountain. Five Flags Marquee Replacement (page 24) – This project ($131,000) provides for replacement of the video marquee located at 4th and Locust. It is critical to relaying information to people driving or walking by the building. The current marquee was installed in 2018. The life expectancy is 7-9 years. A new marquee would have an upgraded screen with higher resolution resulting in better clarity, more user friendly, and more efficient. Five Flags Standby Emergency Generator Replacement (page 25) – This project ($855,000) provides for replacement of the emergency standby generator located at 5th Street which provides power to critical systems inside of the building during a sudden loss of power. The current generator was installed in 2000 and is nearing the end of life expectancy of 30 years. A new generator would be more efficient and environmentally friendly. Five Flags Recirculating Pump Replacement (page 26) – This project ($37,000) provides for the replacement of two recirculating pumps that are responsible for keeping the warm water for sinks readily available by circulating the hot water. Five Flags Building Improvements (page 27) – This project ($23,454,000) provides funding for improvements to the building (arena, theater, lobby areas, exterior) and its equipment. Five Flags Boiler Replacement (page 28) – This project ($410,000) provides funding for replacement of three 2 million BTU boilers which provide heating for the arena. The current boiler system was installed in 2006 and has a replacement schedule of 20 years. Future boilers are more energy efficient. Capital Improvement Program 310 Page 675 of 1094 Port of Dubuque Welcome Sign (page 34) - This project ($33,000) provides for the design, development, and installation of an 8 foot by 200 foot "Welcome to Dubuque" sign located on the flood wall near the Ice Harbor flood gates. There is currently no signage along the river to let patrons know that they have either arrived or are passing by Dubuque. Such a sign on the wall would not only be a welcoming visual for those visiting on cruise ships or other vessels but can create awareness on the river that this is an area they may approach in order to visit the City. This sign could also indirectly filter boat traffic into the Port of Dubuque Marina to dock and/or fuel. Included in this CIP would be the purchase and installation of solar lighting with a 5-year replacement cost of $3,500. Grand River Center Replace Carpet (page 35) - This project ($364,000) provides for the replacement of carpeting at the Grand River Center. Grand River Center Roof Restoration (page 36) - This project ($1,383,000) provides for restoration of the roof on the Grand River Center. The roof was installed in 2002 and restoration is critical to prevent expensive damage if the roof begins leaking. Grand River Center Dishwasher and Water Softener Replacement (page 37) - This project ($181,000) provides for a dishwasher and water softener replacement as they are original to the venue and reached its industry standard life span. After running dishes through the current dishwasher, they are coming back spotted which leads to concerns when placed in front of the guests. Oak View Group (OVG) conducted an in-depth review of the venue’s kitchen requirements. The examination focused on on elevating the culinary experience for the guests to delivering a refined and exceptional food experience. Grand River Center Public Restroom Remodels (page 38) - This project ($385,000) provides for improvement of the overall quality of the guest experience. A comprehensive remodel and renovation of all public bathrooms would be completed. The current design of these facilities has become outdated and is in need of a look that matches the rest of our venue and better meets the expectations of the guests of today. This project aims to revitalize the appearance of the restrooms and upgrade the existing fixtures, many of which have remained untouched since the facility’s initial opening in 2003. East - West Corridor Capacity Improvements (page 198) - This project ($1,085,000) funds capacity improvements along University Avenue and Pennsylvania Avenue to Delhi. 7th Street Extension to Pine Street (page 201) - This project ($2,000,000) funds an environmental assessment of potential site development and the potential acquisition of the real estate. FY27 and FY28 programmed funding would allow for the design development and potential construction of a roadway through the Alliant site which would connect Pine Street at 9th / Kerper Boulevard to 7th Street. 14th Street Overpass (page 204) - This project ($39,120,000) funds planning, design, and construction of a multimodal transportation corridor project for proposed improvements to the Elm Street corridor, the 16th Street corridor, the Kerper Boulevard corridor, Chaplain Schmitt Island corridor, and the proposed 14th Street railroad (vehicular and pedestrian) overpass bridge project. The City was awarded a $2.28 million US DOT RAISE Infrastructure Planning grant and a $25 million RAISE Capital grant to assist in funding for the project entitled “Building Bridges to Employment and Equity (B2E2)." Capital Improvement Program 311 Page 676 of 1094 Central Avenue White Street Corridor Master Plan Design and Implementation Improvements 4th - 22nd Street (page 205) - This project ($8,170,000) provides for funding to implement recommendations outlined in the adopted Central Avenue Streetscape Master Plan along Central Avenue between 11th and 22nd Streets, as well as potential recommendations from the traffic study currently underway for the Central and White Street corridors, with 4th Street to 11th Street coming beyond 2030. The FY26 includes $400,000 for engineering design services and $1 million to create new public parking opportunities to replace on street spaces lost on Central and White Streets. FY27 is to restripe the entire Central Avenue and White Street corridor, 4th-22nd, and continue the FY26 work. FY28 is improvements from 14th - 17th Street. FY29 is improvements from 17th - 20th Street, and continue improvements to 14th -17th Streets. FY30 is installation of the Cycle Truck Lane on the west side of White Street from 5th to 19th Street, and to continue improvements from 17th - 20th Streets. FY2031 and beyond will require $14 million in additional investment to do 20th - 22nd, and 4th -14th Street on Central Avenue and White Street. South Port Redevelopment Concept Plan (page 224) - This project ($40,000) provides for the creation of a clear and consolidated redevelopment vision for the South Port where all existing property owners entering into a partnering agreement thus providing prospective developers a high level of assurance that all key players are in agreement and on-board with proceeding with a proposed redevelopment concept. Iowa Amphitheater on Schmitt Island (page 227) - This project ($9,641,563) provides for a match to the Destination Iowa grant that would construct the Iowa Amphitheater on Chaplain Schmitt Island in the location of the former dog kennels for the greyhounds. This project relates to the City Council top priority goal of Chaplain Schmitt Island Master Plan Implementation. Greater Downtown Street Lights (page 232) - This project ($180,000) provides funding for replacement of the existing 30-foot white streetlights located in downtown Dubuque. Currently, there are approximately 60 white streetlights remaining. The project would replace all remaining white poles and install lighting controllers with meters. In certain cases, these would be replaced with historical streetlights. Many of the streetlights in the downtown area were installed in early 1950's. This program would promote the use of high efficiently, long life LED street lighting throughout the City of Dubuque which saves energy and operating expenses. Downtown Security Camera Program (page 239) - This project ($350,000) provides equipment, installation, and software licenses for the placement of fixed cameras ($2,500 each) installed near roadways, alleys, and signalized intersections in Downtown Dubuque. Iowa Street Streetlight Replacement Project (page 254) - This project ($138,000) replaces the rusting poles that are failing along Iowa St from 4th St to 9th St. The current white poles are rusting from variable of factors, including, quality, age, and winter solutions. This would include the replacement of 16 poles with foundations and new conduit for power, along with light fixtures and pull boxes. These replacements will help by being proactive on failing infrastructure in the downtown area. Federal Building Renovation (page 256) - This project ($7,893,225) provides funding in FY26 for major HVAC upgrades to replace existing equipment that is beyond its expected service life and subject to frequent or catastrophic breakdown. FY29 provides funding for the second phase of HVAC upgrades. ADA Compliance and Facilities Management Consulting (page 257) - This project ($50,000) provides for consulting services related to ADA Compliance Phase II and further implementation of the City's ADA compliance application, called InVision Facilities Management. In Phase I, we were able to have the floor plans of 2 city buildings added to InVision Facilities Management, as well as buildings and pavilions located in parks. In the second phase, we will add additional building footprints and work with a consultant to fully implement the application and possibly tie it into GIS software, ArcGIS Indoors. The funding for this phase is spread out over three years. Downtown Bike Lockers (page 258) - This project ($30,000) funds the installation of 4-5 weatherproof bike lockers per year at the downtown building facilities assigned to the Facilities Management Team. Capital Improvement Program 312 Page 677 of 1094 Greater Downtown Housing Creation Grant Program (page 259) - This program ($3,750,000) provides grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District. Tax increment proceeds are used to capitalize the pool of funds for these grant. The program provides grants up to $10,000 for each new housing unit created in the District. The program creates affordable, quality rental housing units for our workforce. Small Business Grant Administration (page 260) - This project ($60,000) provides the funding to Fountain of Youth for its administration of the grant, which reduces barriers for low- to moderate-income individuals who are in the early stages of operating a small business. Downtown Rehab Grant Program - Includes Central Avenue, Historic Millwork District and Washington Neighborhood (page 262) – This program ($1,000,000) grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District. Tax increment proceeds are used to capitalize the pool of funds for these grants. This grant program provides a 1:1 match for eligible expenses for improvements to façades, as well as accompanying costs for financial consulting and planning & design work for the project. This grant program receives the most inquiries and interest of all Economic Development Department’s programs. The program promotes the redevelopment of the downtown, maintains its historic appeal, and complements grant/loan programs provided by our partners at Dubuque Main Street. Central Avenue Housing Forgivable Loan (page 263) - This project ($750,000) provides for use along the Central Avenue Corridor between 11th Street and 22nd Street. For this program, a unit could be considered eligible even if recently occupied if the project involves a substantial rehabilitation of the unit and buildings. The program provides a loan, forgivable at the 10-year mark, if the developer has maintained the terms of the agreement. Projects can not discriminate based on the tenant's source of income. Central Avenue Alley Lighting Program (page 264) - This project ($40,000) provides for a matching 1:1 grant to reimburse property owners for acquisition and installation of lighting fixtures (minimum of 250 watts) in the alleys between Central Avenue and White Street from 1400 Block to 2400 Block. Individual grant awards will be limited to $500 per property owner. Lighting will be required to be installed in the alleyways at the rear of the property and verified by City staff. Studies have shown a strong correlation between increased alley lighting in urban areas and a reduction in crime rates. From a public perception standpoint, increased lighting will improve the look and feel of the Central Corridor and allow residents and visitors to the area to feel safer. Smart Parking System (page 267) - This project ($780,000) provides funds for the installation of head end equipment that will form the backbone of a phased installation of smart parking technology eventually to be deployed at all parking garages and public parking lots in Dubuque over the next several years. A smart parking system will provide parking customers with on-demand space availability and thus maximize traveler convenience, reduce travel time and reduce congestion in the downtown area. Municipal Parking Lot Maintenance (page 268) - This project ($172,500) provides for maintaining the surface of 14 off-street municipal parking lots. This project also includes signage, landscaping, and screening improvements to surface lots. Lots include: Lot 2 (9th and Bluff), Lot 3 (5th and Bluff), Lot 5 (City Hall Lot), Lot 6 (Library Lot), Lot 7 (3rd and Main), Lot 10 (5th and Main), Lot 12 (4th and Central), Crescent Community Health Center Parking Lot, Lot 4 (12th and Bluff), Port of Dubuque Surface Lot, Federal Building Parking Lot, Elm Street Parking Lot, Ice Harbor Drive Parking Lot, and Lot 9 (3rd and Locust). The funding for maintenance of municipal parking lots provides for pavement crack sealing, repairs, line striping, and seal coating surfaces of municipal parking lots. Parking Ramp Major Maintenance Repairs (page 270) - This project ($7,198,400) funds major renovation work needed at the Iowa, Locust, 5th Street, Five Flags, 10th and Central, and Intermodal ramps. Funding will address structural repair items and needed mechanical, electrical & plumbing repairs. Capital Improvement Program 313 Page 678 of 1094 Washington Neighborhood Home Purchase Program (page 273) - This project ($1,269,896) supports and encourages homeownership in the Washington Neighborhood. The program operates under the oversight of the Housing Trust Fund Committee and is capitalized by annual grants received from the Iowa Finance Authority (IFA). IFA requires a match for the program and the City provides IFA Trust Match of $50,000 from the Greater Downtown TIF (GDTIF). The primary purpose is to complement housing assistance provided through the CDBG program by providing loans to low-to-mod income homeowners and buyers in the Washington Neighborhood and for households earning less than 30% MI are eligible to purchase any property within the City limits. Downtown ADA Assistance Program (page 277) - This project ($150,000) provides assistance to residents and businesses to ensure facilities in the Downtown Urban Renewal Area are fully accessible and inclusive to all persons regardless of abilities. This includes parking lots, retail and wholesale stores, restaurants, cafés, taverns, gas stations, public buildings, lodging, schools, parks, and entertainment venues. The program is designed to assist businesses with the cost of becoming ADA compliant. Qualified applicants can receive up to 50% of the cost of the project from the City of Dubuque, at a maximum amount of $5,000 per property. North Cascade Housing TIF District In FY 2014 the City created the first housing TIF district in the Timber Hyrst subdivision off of North Cascade Road. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/ Rehab/Resale and can be used outside the Greater Downtown TIF Area. This district expires in 2026 and all certified debt has been collected. English Ridge Housing TIF District In FY 2015 the City created a housing TIF district in the English Ridge subdivision off of Stone Valley Drive. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/ Resale and can be used outside the Greater Downtown TIF Area. This district expires in FY 2026. Assistance for Homeownership (page 271) - This project ($68,642) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. South Pointe Housing TIF District In FY 2017 the City created a housing TIF district in the South Pointe subdivision off of Highway 151 South. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/ Resale and can be used outside the Greater Downtown TIF Area. Capital Improvement Program 314 Page 679 of 1094 Assistance for Homeownership (page 271) - This project ($517,214) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. Rustic Point Housing TIF District In FY 2017 the City created a housing TIF district in the Rustic Point subdivision off of Derby Grange Road. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/ Resale and can be used outside the Greater Downtown TIF Area. Assistance for Homeownership (page 271) - This project ($245,295) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. MISCELLANEOUS SOURCES Private Participation (0.83% of Total CIP) Private contributions represents the non-City share of the cost of several projects including private participation, fund raising, loans, grants and future resource allocation of City funds. Private participation funds included in the five year CIP include: Boyd Gaming contribution for the Port of Dubuque Ramp Maintenance ($457,996); Street Lighting and Traffic Signal Knockdown insurance reimbursements ($50,000); Canadian Pacific Kansas City Southern (CPKC) Railroad contribution for 14th Street Overpass project ($1,000,000); Milling sales from the Asphalt Milling Program ($527,616); Private Marina Companies contribution for Harbor Area Maintenance Dredging ($117,500); Dubuque Racing Association contribution for Iowa Amphitheater on Schmitt Island ($831,602); and IDOT reimbursement for the Pavement Marking program ($125,000). Special Assessments (0.07% of Total CIP) Special Assessments represent that portion of street and sanitary sewer improvement projects anticipated to be assessed to benefiting property owners. The $250,000 amount breaks down: (a) $215,000 for sidewalk lien special assessments, and (b) $35,000 for green alleys (non Bee Branch) special assessments. Capital Improvement Program 315 Page 680 of 1094 Capital Improvement Program 316 Page 681 of 1094 Capital Improvement Program 317 Page 682 of 1094 Capital Improvement Program 318 Page 683 of 1094 Capital Improvement Program 319 Page 684 of 1094 Capital Improvement Program 320 Page 685 of 1094 Capital Improvement Program 321 Page 686 of 1094 Capital Improvement Program 322 Page 687 of 1094 Capital Improvement Program 323 Page 688 of 1094 Capital Improvement Program 324 Page 689 of 1094 Capital Improvement Program 325 Page 690 of 1094 Capital Improvement Program 326 Page 691 of 1094 Capital Improvement Program 327 Page 692 of 1094 Capital Improvement Program 328 Page 693 of 1094 Capital Improvement Program 329 Page 694 of 1094 Capital Improvement Program 330 Page 695 of 1094 Capital Improvement Program 331 Page 696 of 1094 STREET CONSTRUCTION RELATED IMPROVEMENTS - OVERVIEW STREET CONSTRUCTION: FY 2026 Engineering Department: Annual Street Construction Program $ 1,775,000 1 Engineering Department: Misc. Street Related Improvements 370,000 Engineering Department: Traffic Safety and Capacity Improvements 657,350 Public Works: Street Maintenance & Overlays Program 5,154,789 TOTAL - STREET CONSTRUCTION IMPROVEMENTS:$ 7,957,139 ANNUAL AVERAGE:1995 - 2026 Average Engineering Department: Fiscal Year 1995 - 2026 (Annual Average)$ 4,072,348 Public Works: Fiscal Year 1995 - 2026 (Annual Average) 2,987,004 TOTAL - STREET CONSTRUCTION IMPROVEMENTS:$ 7,059,352 HISTORICAL AVERAGE:1990 - 1994 Average Engineering & Public Works Department: Historical Five-Year Average - Street Improvements $ 2,100,000 1.Budget number does not include Southwest Arterial, Traffic Signalization Maintenance, Fiber Optic Improvements, Sidewalk or Miscellaneous Improvements. Capital Improvement Program 332 Page 697 of 1094 This page intentionally left blank. Capital Improvement Program 333 Page 698 of 1094 POLICY GUIDELINES 334 Page 699 of 1094 This page intentionally left blank. 335 Page 700 of 1094 C I T Y O F D U B U Q U E BUDGET & FISCAL POLICY FISCAL YEAR 2026 Policy Guidelines 336 Page 701 of 1094 Operating Budget Guidelines The Policy Guidelines are developed and adopted by City Council during the budgeting process to provide targets or parameters within which the budget recommendation will be formulated, in the context of the City Council Goals and Priorities established in August 2024. The final budget presented by the City Manager may not meet all these targets due to changing conditions and updated information during budget preparation. To the extent the recommended budget varies from the guidelines, an explanation will be provided in the printed budget document. By State law, the budget that begins July 1, 2025 must be adopted by April 30, 2025. A.RESIDENT PARTICIPATION GUIDELINE To encourage resident participation in the budget process, City Council will hold multiple special meetings in addition to the budget public hearing for the purpose of reviewing the budget recommendations for each City department and requesting public input following each departmental review. The budget will be prepared in such a way as to maximize its understanding by residents. Copies of the recommended budget documents will be accessed via the following: 1.The City Clerk’s office, located in City Hall (printed) 2. The government documents section at the Carnegie Stout Public Library (printed) 3.On the City’s website at www.cityofdubuque.org/budget (digital) Opportunities are provided for resident input prior to formulation of the City Manager's recommended budget and will be provided again prior to final Council adoption, both at City Council budget special meetings and at the required budget public hearing. Timeline of Public Input Opportunities The Budget Office conducted community outreach with Balancing Act using print and digital marketing and presentations. •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://dubuqueia.finance.socrata.com/#!/dashboard 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. Policy Guidelines 337 Page 702 of 1094 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. B.SERVICE OBJECTIVES AND SERVICE LEVELS GUIDELINE The budget will identify specific objectives to be accomplished during the budget year, July 1 through June 30, for each activity of the City government. The objectives serve as a commitment to the citizens from the City Council and City organization and identify the level of service which the citizen can anticipate. C.TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED GUIDELINE Two types of budget documents will be prepared for public dissemination. The recommended City operating budget for Fiscal Year 2026 will consist of a Recommended City Council Policy Budget that is a collection of information that has been prepared for department hearings and a Residents Guide to the Recommended FY 2026 Budget. These documents will be available in mid-March. 1.Recommended City Council Policy Budget The purpose of this documents is to focus attention on policy decisions involving what services the City government will provide, who will pay for them, and the implications of such decisions. The document will emphasize objectives, accomplishments and associated costs for the budget being recommended by the City Manager. The Recommended City Council Policy Budget will include the following information for each department: •Highlights of prior year’s accomplishments and Future Year’s Initiatives •A financial summary •A summary of improvement packages requested and recommended significant line items Policy Guidelines 338 Page 703 of 1094 •Capital improvement projects in the current year and those recommended over the next five years •Organizational chart for larger departments and major goals, objectives and performance measures for each cost center within that department •Line item expense and revenue financial summaries. 2.The Residents Guide This section of the Recommended FY 2026 Budget will be a supplementary composite of tables, financial summaries and explanations. It will include the operating and capital budget transmittal messages and the adopted City Council Budget Policy Guidelines. Through graphs, charts and tables it presents financial summaries which provide an overview of the total operating and capital budgets. D.ADOPT A BALANCED BUDGET GUIDELINE The City will adopt a balanced budget in which expenditures will not be allowed to exceed reasonable estimated resources. The City will pay for all current expenditures with current revenues. E.BALANCE BETWEEN SERVICES AND TAX BURDEN GUIDELINE The budget should reflect a balance between services provided and the burden of paying taxes and/or fees for those services. It is not possible or desirable for the City to provide all the services requested by individual residents. The City must consider the ability of residents to pay for services in setting service levels and priorities. F.MAINTENANCE EXISTING LEVEL OF SERVICE GUIDELINE To the extent possible with the financial resources available, the City should attempt to maintain the existing level of services. As often as reasonably possible, each service should be tested against the following questions: a)Is this service truly necessary? b)Should the City provide it? c)What level of service should be provided? d)Is there a better, less costly way to provide it? e)What is its priority compared to other services? f)What is the level of demand for the service? g)Should this service be supported by property tax, user fees, or a combination? G.IMPROVE PRODUCTIVITY GUIDELINE Continue efforts to stretch the value of each tax dollar and maximize the level of City services purchased with tax dollars through continual improvements in efficiency and effectiveness. Developing innovative and imaginative approaches for old tasks, reducing duplication of service effort, creative application of new technologies, and more effective organizational arrangements are approaches to this challenge. Policy Guidelines 339 Page 704 of 1094 H.USE OF VOLUNTEERS DISCUSSION To respect residents who must pay taxes, the City must seek to expand resources and supplement service-delivery capacity by continuing to increase direct resident involvement with service delivery. Residents are encouraged to assume tasks previously performed or provided by City government. This may require the City to change and expand the approach to service delivery by providing organizational skills and training and coordinating staff, office space, meeting space, equipment, supplies and materials rather than directly providing more expensive full-time City staff. Activities in which residents can continue to take an active role include: Library, Recreation, Parks, Five Flags Center, and Police. GUIDELINE Future maintenance of City service levels may depend partially or largely on volunteer resident staffs. Efforts shall continue to identify and implement areas of City government where (a) volunteers can be utilized to supplement City employees to maintain service levels (i.e., Library, Recreation, Parks, Police) or (b) service delivery can be adopted by to non-government groups and sponsors -- usually with some corresponding financial support. I.RESTRICTIONS ON INITIATING NEW SERVICE GUIDELINE New service shall only be considered: (a) when additional revenue or offsetting reduction in expenditures is proposed; or (b) when mandated by state or federal law. J.SALARY INCREASES OVER THE AMOUNT BUDGETED SHALL BE FINANCED FROM BUDGET REDUCTIONS IN THE DEPARTMENT(S) OF THE BENEFITING EMPLOYEES DISCUSSION The recommended budget includes salary amounts for all City employees. However, experience shows that budgeted amounts are often exceeded by fact finder and/or arbitrator awards. Such "neutrals" do not consider the overall financial capabilities and needs of the community and the fact that the budget is carefully balanced and fragile. Such awards have caused overdrawn budgets, deferral of necessary budgeted expenditures, expenditure of working balances and reserves, and have generally reduced the financial condition or health of the City government. To protect the financial integrity of the City government, it is recommended the cost of any salary adjustment over the amount financed in the budget is paid for by reductions in the budget of the department(s) of the benefiting employees. The City has five collective bargaining agreements. The current contracts expire as follows: Bargaining Unit Contract Expires Teamsters Local Union No. 120 June 30, 2025 Teamsters Local Union No. 120 Bus Operators June 30, 2025 Dubuque Professional Firefighters Association June 30, 2027 Dubuque Police Protective Association June 30, 2029 International Union of Operating Engineers June 30, 2029 GUIDELINE Policy Guidelines 340 Page 705 of 1094 Salary increases over the amount budgeted for salaries shall be financed from operating budget reductions in the department(s) of the benefiting employees. K.THE AFFORDABLE CARE ACT GUIDELINE The Affordable Care Act is a health care law that aims to improve the current health care system by increasing access to health coverage for Americans and introducing new protections for people who have health insurance. The Affordable Care Act (ACA) was signed into law on March 23, 2010. Under the ACA, employers with more than 50 full-time equivalent employees must provide affordable “minimum essential coverage” to full-time equivalent employees. The definition of a full-time equivalent employee under the Affordable Care Act is any employee that works 30 hours per week or more on average over a twelve- month period (1,660 hours or more). There is a twelve-month monitoring period for part-time employees. If a part-time employee meets or exceeds 30 hours per week on average during that twelve-month period, the City must provide health insurance. On July 2, 2013, the Treasury Department announced that it postponed the employer shared responsibility mandate for one year. Based on the initial requirements of the Affordable Health Care Act, the Fiscal Year 2014 budget provided for insurance coverage effective February 1, 2014 for several part-time employees. In addition, the Fiscal Year 2014 budget provided for making several part- time positions full-time on June 1, 2014. Due to the delay of the employer shared responsibility mandate for the Affordable Health Care Act, the City delayed providing insurance coverage for eligible part-time employees and delayed making eligible part- time positions full- time until January 1, 2015.The Standard Measurement Period was delayed from January 1, 2013 through December 31, 2013 to December 1, 2013 through November 30, 2014 with the first provision of health insurance date being January 1, 2015. The impact of the Affordable Care Act on the City of Dubuque included changing nine part-time positions to full-time (Bus Operators (4), Police Clerk Typist (1), Building Services Custodians (3), and Finance Cashier (1) in Fiscal Year 2016. In addition, nine part-time positions were offered health insurance benefits due to working more than1,560 hours (Bus Operators (4), Golf Professional, Assistant Golf Professional, Golf Maintenance Worker, Parks Maintenance Worker , and Water Meter Service Worker). The number of these part-time positions with health insurance benefits has been reduced as employees in these positions accept other positions or leave employment with the City of Dubuque. As of February 24, 2025, there is one part-time position with health insurance benefits that remains which includes the Golf Professional. L.BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES GUIDELINE The provision of City services in the most economical and effective manner requires a balance between capital (with emphasis upon replacement of equipment and capital projects involving maintenance and reconstruction) and operating expenditures. This balance should be reflected in the budget each year. M.USER CHARGES DISCUSSION Policy Guidelines 341 Page 706 of 1094 User charges or fees represent a significant portion of the income generated to support the operating budget. It is the policy that user charges or fees be established when possible so those who benefit from a service or activity also help pay for it. Municipal utility funds have been established for certain activities, which are intended to be self- supporting Enterprise Funds. Examples of utility funds operating as Enterprise Funds include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund. In other cases, a user charge is established after the City Council determines the extent to which an activity must be self-supporting. Examples of this arrangement are fees for swimming, golf, recreation programs, and certain inspection programs such as rental inspections and building permits. The Stormwater User Fund is fully funded by stormwater use fees. The General Fund will continue to provide funding for the stormwater fee subsidies which provide a 50% subsidy for the stormwater fee charged to property tax exempt properties and low-to- moderate income residents and a 75% subsidy for residential farms. The General Fund will also continue to provide funding for the refuse, water, and sanitary sewer fee subsidies which provide a 50% subsidy for the fees charged to low-to-moderate income residents. GUIDELINE User fees and charges should be established where possible so that those who utilize or directly benefit from a service, activity or facility also help pay for it. User fees and charges for each utility enterprise fund (Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set at a level that fully supports the total direct and indirect cost of the activity, including the cost of annual depreciation of capital assets, the administrative overhead to support the system and financing for future capital improvement projects. Percent Self-Supporting Activity FY 2023 FY 2024 FY 2025 FY 2026 Adult Athletics 70.7%77.2%61.1%61.7% McAleece Concessions 118.7%114.5%119.3%115.3% Youth Sports 13.3%17.4%15.4%12.2% Therapeutic & After School 80.2%56.2%18.2%17.6% Recreation Classes 65.2%100.2%50.8%66.2% Swimming 43.6%41.6%44.6%40.0% Golf 108.2%107.9%98.4%94.5% Port of Dubuque Marina 86.4%75.5%79.6%81.2% Park Division 16.8%17.5%14.8%17.2% Library 1.2%1.2%1.0%1.1% Airport 100.0%106.7%95.5%97.6% Building Inspections 124.4%106.7%96.9%114.6% Planning Services 50.5%62.7%45.2%68.8% Health Food/Environmental Inspections 63.3%37.5%37.0%38.3% Animal Control 68.3%58.5%53.9%51.7% Housing - General 69.5%95.6%108.9%107.6% Federal Building 69.8%62.2%67.8%86.2% N.ADMINISTRATIVE OVERHEAD RECHARGES Policy Guidelines 342 Page 707 of 1094 DISCUSSION While the Enterprise Funds have contributed to administrative overhead, the majority has been provided by the General Fund. This is not reasonable and unduly impacts property taxes, which causes a subsidy to the Enterprise Funds. Prior to FY 2013, the administrative overhead was charged by computing the operating expense budget for each enterprise fund and dividing the result by the total City-wide operating expense budget which resulted in the following percentages of administrative overhead charged to each enterprise fund: Water 5.32%; Sanitary Sewer 4.84%; Stormwater 0.55%; Solid Waste 2.83%; Parking 1.71%; and Landfill 2.71%. The adopted Fiscal Year 2013 budget changed the administrative overhead to be more evenly split between the general fund and enterprise funds and is phased in over many years. The Fiscal Year 2018 administrative overhead formula was recommended modified. The modification removed Neighborhood Development, Economic Development and Workforce Development from all recharges to utility funds. In addition, the Landfill calculation is modified to remove Geographic Information Systems and Planning Services. In Fiscal Year 2026, the general fund is recommended to support $1,662,795 in administrative overhead using the recharge method adopted in Fiscal Year 2013 and revised in Fiscal Year 2018. GUIDELINE Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Planning, City Clerk, Legal Services and City Manager’s Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. When the overhead recharges are fully implemented, the split of the cost of administrative overhead excluding Engineering will be as follows: Policy Guidelines 343 Page 708 of 1094 The implementation percent of the administrative overhead recharges in Fiscal Year 2025 as compared to Fiscal Year 2026 is as follows: Percent Implemented Administrative Overhead 10 0 % 10 0 % 96 % 30 % 97 % 16 % 99 % 93 % 39 % 26 % 10 0 % 10 0 % Sanitary Sewer Stormwater Water Refuse Parking Landfill FY26 FY25 —% 25% 50% 75% 100% O.OUTSIDE FUNDING DISCUSSION The purpose of this guideline is to establish the policy that the City should aggressively pursue outside funding to assist in financing its operating and capital budgets. However, the long-term commitments required for such funding must be carefully evaluated before any agreements are made. Commitments to assume an ongoing increased level of service or level of funding once the outside funding ends must be minimized. GUIDELINE To minimize the property tax burden, the City of Dubuque will make every effort to obtain federal, state and private funding to assist in financing its operating and capital budgets. However, commitments to guarantee a level of service or level of funding after the outside funding ends shall be minimized. Also, any matching funds required for capital grants will be identified. P.GENERAL FUND OPERATING RESERVE (WORKING BALANCE) DISCUSSION An operating reserve or working balance is an amount of cash, which must be carried into a fiscal year to pay operating costs until tax money, or other anticipated revenue comes in. Without a working balance, there would not be sufficient cash in the fund to meet its obligations and money would have to be borrowed. Working balances are not available for funding a budget; they are required for cash flow (i.e., to be able to pay bills before taxes are collected). Policy Guidelines 344 Page 709 of 1094 Moody's Investor Service recommends a factor of 35 percent 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%. 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. Policy Guidelines 345 Page 710 of 1094 Fiscal Year Fund Reserve (As % of General Fund revenues) New Moody’s Calculation Reason for change from previous FY FY 2016 17.52% FY 2017 20.09%Increase due to capital projects not expended before the FY 2018 23.81% Increase due to capital projects not expended before the end of the FY and additional contributions to general fund reserve FY 2019 29.06% Increase due to capital projects not expended before the end of the FY. FY 2020 31.42% 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 FY 2022 49.16%45.09% Increase due to American Rescue Plan Act funds not spent ($13.2 million), capital projects not expended before the 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 48.54%58.67% Decrease due to spend down of American Rescue Plan Act funds. The City of Dubuque has historically adopted a general fund reserve policy as part of the Fiscal and Budget Policy Guidelines which are adopted each year as part of the budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve Policy. Per the policy for the General Fund, the City will maintain a minimum fund balance of at least 20 percent of the sum of (a) annual operating expenditures not including interfund transfers in the General Fund less (b) the amounts levied in the Trust and Agency fund and the Tort Liability Fund (“Net General Fund Operating Cost”). The City may increase the minimum fund balance by a portion of any operating surplus above the carryover balance of $200,000 that remains in the General Fund at the close of each fiscal year. The City continued to add to the General Fund minimum balance when additional funds were available until 20 percent of Net General Fund Operating Cost was reached in Fiscal Year 2017. During Fiscal Year 2024, the General Fund minimum balance was increased to 25 percent. 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 $23,504,637 on June 30, 2025 as compared to the general fund reserve balance on an accrual basis of $42,603,917. 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. Policy Guidelines 346 Page 711 of 1094 GUIDELINE The guideline of the City of Dubuque is to maintain a General Fund working balance or operating reserve of 25% (27% to maintain a margin of error of 2%) in FY 2026 and beyond. In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve level in Fiscal Year 2023. In fact, the City met the 20% reserve requirement in FY 2017, five years ahead of schedule and has sustained a greater than 20% reserve. General Fund Reserve Projections: Fiscal Year Contribution City’s Spendable General Fund Cash Reserve % of Projected Revenue Moody’s New Methodology FY2019 $ 1,050,000 $ 20,945,090 29.06 % FY2020 $ —$ 21,744,160 31.24 % FY2021 $ 500,000 $ 31,089,468 40.72 % FY2022 $ —$ 41,259,518 49.16 % 45.09 % FY2023 $ 2,717,339 $ 48,403,917 55.82 % 62.99 % FY2024 $ 4,419,668 $ 43,826,193 51.19 % 62.41 % 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 % * Capital projects and large equipment purchases that are not completed in the year budgeted will temporarily increase the amount of fund balance remaining at the end of the fiscal year. After resources are allocated to the next fiscal year to complete unfinished capital projects and equipment purchases, any amount of general fund reserve balance over 27% creates resources for additional capital projects or other mid-year expenses. Q.USE OF UNANTICIPATED, UNOBLIGATED, NONRECURRING INCOME DISCUSSION Occasionally, the City receives income that was not anticipated and was not budgeted. Often, this money is non-recurring and reflects a one-time occurrence which generated the unanticipated increase in income. Non-recurring income generally will not be spent on recurring expenses. This would result in a funding shortfall in the following budget year before even starting budget preparation. However, eligible non- recurring expenditures would include capital improvements and equipment purchases. GUIDELINE Nonrecurring unobligated income shall generally only be spent for nonrecurring expenses. Capital improvement projects and major equipment purchases tend to be nonrecurring expenditures. R.USE OF "UNENCUMBERED FUND BALANCES" DISCUSSION Historically, 100% of a budget is not spent by the end of the fiscal year and a small unencumbered balance remains on June 30th. In addition, income sometimes exceeds revenue estimates or there are cost savings resulting in some unanticipated balances at the end of the year. These amounts of unobligated, year-end balances are "carried over" into the new fiscal year to help finance it. Policy Guidelines 347 Page 712 of 1094 The FY 2025 General Fund budget, which went into effect July 1, 2024, anticipated a "carryover balance" of $200,000 or approximately 0.7 percent of the City tax asking. For multi-year budget planning purposes, these guidelines assume a carryover balance of $200,000 in FY 2026 through FY 2030. GUIDELINE Carryover General Fund balance shall generally be used to help finance the next fiscal year budget and reduce the demand for increased taxation. The available carryover General Fund balance shall be anticipated not to exceed $200,000 for FY 2027 and beyond through the budget planning period. Any amount over that shall usually be programmed in the next budget cycle as part of the capital improvement budgeting process. S.PROPERTY TAX DISCUSSION I . A S S U M P T I O N S - R E S O U R C E S 1. Local, Federal and State Resources a)Cash Balance. Unencumbered funds or cash balances of $200,000 will be available in FY 2026 and each succeeding year to support the operating budget. b)Interest Revenue. 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. c)Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the General Fund for property tax relief in FY 2026. Sales tax receipts are projected to decrease (0.17)% ($21,580) under FY 2025 budget and 2.00% over FY 2025 actual of $12,652,878 based on FY 2025 revised revenue estimate which includes actuals through December 2024, and then increase at an annual rate of 2.00% percent per year beginning in FY 2027. The following chart shows the past four years of actual sales tax funds and projected FY 2026 for the General Fund: Sales Tax Funds FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 PY Q4 $ 419,551 $ 475,037 $ 451,920 $ 574,416 $ 585,904 Quarter 1 1,361,526 1,177,196 1,545,777 1,592,834 1,624,691 Quarter 2 1,425,968 1,522,885 1,596,421 1,605,397 1,637,505 Quarter 3 1,211,388 1,443,097 1,524,508 1,554,999 1,586,099 Quarter 4 950,069 1,110,593 979,209 998,793 1,018,769 Reconciliation 945,466 371,388 — — — Total $ 6,313,968 $ 6,100,196 $ 6,097,835 $ 6,326,439 $ 6,452,968 % Change +10.91 % -3.50 % -0.04 % +3.75 % +2.00 % d)Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 15.82% ($534,077) over FY 2025 budget and 3.00% over FY 2025 re-estimated receipts of $3,796,563, and then increase at an annual rate of 3.00% per year. Policy Guidelines 348 Page 713 of 1094 e)FTA Revenue. Federal Transportation Administration (FTA) transit operating assistance increased from $558,000 in FY 2025 to $598,167 in FY 2026. The FY 2026 budget is based on the revised FY 2025 budget received from the FTA. Federal operating assistance is based on a comparison of larger cities. Previously the allocation was based on population and population density. f)Ambulance Revenue. Ambulance Ground Emergency Medical Transport Payments increased from $2,401,917 in FY 2025 to $2,413,018 in FY 2026. GEMT is a federally- funded supplement to state Medicaid payments to EMS providers transporting Medicaid patients which began in FY 2021. FY 2026 is based on calculated projections using historical averages. This revenue is projected using the first quarter of performance in FY 2025 and the previous 11 quarters of performance. Based on that formula, the 3-year quarterly average growth of Medicaid transports is 0.8%. The projected number of transports for FY 2025 is 1,084 and for FY 2026 is 1,092. The FY 2024 actual was 1,075. Based on the unaudited FY 2024 cost report, the FY 2026 revenue per transport is estimated to be $2,209.18. This line item is offset by GEMT Pay to Other Agency expense for local match of $804,331 resulting in net revenue of $1,608,687. Ambulance Fees decreased from $2,074,232 in FY 2025 ($361 per call) to $1,756,870 in FY 2026 ($357 per call) based on calculated projections using historical averages. The FY 2024 actual was $1,763,339. In FY 2026, it is currently estimated that there will be 4,924 calls with $357 per call average. The FY 2026 ambulance revenue projection is based on the average transport volume growth of the past 12 quarters (which is 0.2% growth). This includes the first quarter of performance in FY 2025 and the prior 11 quarters. g)Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth per year over budgeted FY 2025. h)Building Fee Revenue. Building fees (Building Permits, Electrical Permits, Mechanical Permits and Plumbing Permits) are anticipated to increase $167,827 from $932,030 in FY 2025 to $1,099,857 in FY 2026. i)DRA Revenue. 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. Policy Guidelines 349 Page 714 of 1094 The following is a ten-year history of DRA lease payments to the City of Dubuque: Fiscal Year DRA Lease $ Change % FY 2026 Projected $ 7,213,362 $ 601,496 9.10 % FY 2025 Revised $ 6,611,866 $ (793,713) -10.72 % FY 2025 Budget $ 7,405,579 $ 1,131,553 18.04 % FY 2024 Actual $ 6,274,026 $ (917,449) -12.76 % FY 2023 Actual $ 7,191,475 $ 583,944 8.84 % FY 2022 Actual $ 6,607,531 $ 2,645,535 66.77 % FY 2021 Actual $ 3,961,996 $ (1,187,192) -23.06 % FY 2020 Actual $ 5,149,188 $ 293,177 6.04 % FY 2019 Actual $ 4,856,011 $ 18,879 0.39 % FY 2018 Actual $ 4,837,132 $ (195,083) -3.88 % FY 2017 Actual $ 5,032,215 $ (155,297) -2.99 % FY 2016 Actual $ 5,187,512 $ (158,104) -2.96 % FY 2015 Actual $ 5,345,616 $ (1,474,667) -10.90 % The Diamond Jo payment related to the revised parking agreement increased from $624,377 in FY 2025 to $687,003 in 2026 based on estimated Consumer Price Index adjustment. j)DRA Gaming. The split of gaming revenues from taxes and the DRA lease (not distributions) in FY 2026 remains at a split of 100% operating and 0% capital. When practical in future years, additional revenues will be moved to the capital budget from the operating budget. Policy Guidelines 350 Page 715 of 1094 The following shows the annual split of gaming taxes and rents between operating and capital budgets from FY2021– FY2026: Split of Gaming Tax + Revenue Between Operating & Capital Budgets 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% Operating Capital —%10%20%30%40%50%60%70%80%90%100% FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 k)Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2026) and the Diamond Jo parking privileges ($687,003 in FY 2026) have not been included in the split with gaming revenues. This revenue is allocated to the operating budget. 2. Property Taxes l)Residential Rollback. The residential rollback factor will increase from 46.3428% in 2025 to 47.4316% or a 2.35% increase in FY 2026. The rollback has been estimated to remain the same from Fiscal Years 2027 through 2030. The percent of growth from revaluation is to be the same for agricultural and residential property; therefore, if one of these classes has less than 3% growth for a year, the other class is limited to the same percent of growth. A balance is maintained between the two classes by ensuring that they increase from revaluation at the same rate. In FY 2026, agricultural property had more growth than residential property which caused the rollback factor to decrease. The percent of growth from revaluation is to be the same for agricultural and residential property; therefore, if one of these classes has less than 3% growth for a year, the other class is limited to the same percent of growth. A balance is maintained between the two classes by ensuring that they increase from revaluation at the same rate. In FY 2026, agricultural property had more growth than residential property which caused the rollback factor to increase. Policy Guidelines 351 Page 716 of 1094 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. In an effort to keep property taxes low to the average homeowner, the City calculates the property tax impact to the average residential property based on the residential rollback factor and property tax rate. In a year that the residential rollback factor increases, the City recommends a lower property tax rate than what would be recommended had the rollback factor remained the same. The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to 47.4316 percent in Fiscal Year 2026. The rollback percent had steadily decreased since FY 1987, which has resulted in less taxable value and an increase in the City’s tax rate. However, that trend began reversing in FY 2009 when the rollback reached a low of 44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2025, the City’s tax rate would have been $5.95 per $1,000 of assessed value instead of $9.93 in FY 2025. m)State Equalization Order/Property Tax Reform. There was not an equalization order for commercial, industrial or multi-residential property in Fiscal Year 2026. The Iowa Department of Revenue is responsible for “equalizing” assessments every two years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide basis. Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed value; however due to legislative changes in FY 2013, a 95% rollback factor was applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond. The State of Iowa backfilled the loss in property tax revenue from the rollback 100% in FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018 and beyond. The FY 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). Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill provides that beginning with the FY 2023 payment, the General Fund standing appropriation for commercial and industrial property tax replacement for cities and counties will be phased out in four or seven years, depending on how the tax base of the city or county grew relative to the rest of the state since FY 2014. Cities and counties where the tax base grew at a faster rate than the statewide average from FY 2014 through FY 2021 will have the backfill phased out over a four-year period from FY 2023 to FY 2026, while those that grew at a rate less than the statewide average will have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The City of Dubuque’s tax base grew at a rate less than the statewide average and will have a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in FY 2023, the backfill will be eliminated over a eight year period. Policy Guidelines 352 Page 717 of 1094 The projected reduction of State backfill revenue to only the general fund is as follows: Fiscal Year State Backfill 2026 $ (97,981) 2027 (97,981) 2028 (97,981) 2029 (97,981) 2030 (97,981) Total $ (489,905) Business Property Tax Credit Law Changes and Implementation of Two-Tier Assessment Limitations From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property taxes owed and the credit was funded by the State of Iowa. The average commercial and industrial properties ($432,475 Commercial / $599,500 Industrial) received a Business Property Tax Credit from the State of Iowa for the City share of their property taxes of $148 in FY 2015, $693 in FY 2016, $982 in FY 2017, $959 in FY 2018, $843 in FY 2019, $861 in FY 2020, $779 in FY 2021, $780 in FY 2022, and $722 in FY 2023. House File 2552, Division 11 passed in the 2022 legislative session and signed by the Governor on May 2, 2022 repeals the Business Property Tax Credit (BPTC). In lieu of the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past. The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remained the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. If the total for all claims is more than the appropriated amounts, the claims will be prorated and the Iowa Department of Revenue will notify the county auditors of prorated percentage by September 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. The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2026 is estimated to be $387,318. n)Multi-Residential Property Class/Eliminated State Shared Revenue. Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax classification for rental properties called multi-residential, which requires a rollback, or assessment limitations order, on multi-residential property which will eventually equal the residential rollback. Multi-residential property includes apartments with 3 or more units. Rental properties of 2 units were already classified as residential property. Policy Guidelines 353 Page 718 of 1094 The State of Iowa did not backfill property tax loss from the rollback on multi-residential property. The rollback occurred as follows: Fiscal Year Rollback %Annual Loss of Tax Revenue FY 2017 86.25%$ 331,239 FY 2018 82.50% 472,127 FY 2019 78.75% 576,503 FY 2020 75.00% 691,640 FY 2021 71.25% 952,888 FY 2022 67.50% 752,366 FY 2023 63.75% 662,821 FY 2024 54.65% 1,186,077 Total $ 5,625,661 This annual loss in tax revenue of $1,186,077 from multi-residential property was not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City lost $5,625,661 in total, meaning landlords paid that much less in property taxes. The state did not require landlords to charge lower rents or to make additional investment in their property. In Fiscal Year 2024, the multi-residential property class was eliminated and is reported with the residential property class. State Shared Revenue Eliminations In addition, the State of Iowa eliminated the: a)Machinery and Equipment Tax Replacement in FY 2003 (-$200,000) b)Personal Property Tax Replacement in FY 2004 (-$350,000) c)Municipal Assistance in FY 2004 (-$300,000) d)Liquor Sales Revenue in FY 2004 (-$250,000) e)Bank Franchise Tax in FY 2005 (-$145,000) f)Alcohol License Revenue in FY 2023 (-$85,000) The combination of the decreased residential rollback, State funding cuts and increased expenses has forced the City’s tax rate to increase since 1987 when the residents passed a referendum to establish a one percent local option sales tax with 50% of the revenue going to property tax relief. g)Taxable Value. FY 2026 will reflect the following impacts of taxable values of various property types: Property Type Percent Change in Taxable Value Residential (Includes Multi-Residential) +2.77 % Commercial +1.84 % Industrial +2.41 % Overall +4.39 % Policy Guidelines 354 Page 719 of 1094 *Overall taxable value increased +4.39% percent after deducting Tax Increment Financing values Assessed valuations were increased 2 percent per year beyond FY 2026. h)Riverfront Property Lease Revenue. Riverfront property lease revenue is projected to increase by $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. 3. Fees, Tax Rates & Services i)Franchise Fees. 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. The franchise fee revenues are projected to increase at an annual rate of 4 percent per year from FY 2027 through FY 2030. The City provides franchise fee rebates to gas and electric customers who are exempt from State of Iowa sales tax. Franchise fee rebates are provided at the same exemption percent as the State of Iowa sales tax exemption indicated on the individual gas and or electric bill. To receive a franchise fee rebate, a rebate request form must be completed by the customer, the gas and/or electric bill must be attached, and requests for rebates for franchise fees must be submitted during the fiscal year in which the franchise fees were paid except for June. Natural Gas franchise fee rebates have been projected to decrease 46 percent under 2025 budget of $101,399 and Electric franchise fee rebates have been projected to decrease 3 percent under 2025 budget of $845,095. The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal maximum, on June 1, 2015. j)Property Tax Rate. For purposes of budget projections only, it is assumed that City property taxes will continue to increase at a rate necessary to meet additional requirements over resources beyond FY 2026. k)Police & Fire Protection. FY 2026 reflects the fourteenth year that payment in lieu of taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection. In FY 2026, the Sanitary Sewer fund is charged 0.43% of building value and the Water fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire Protection. This revenue is reflected in the General Fund and is used for general property tax relief. II. ASSUMPTIONS - REQUIREMENTS a)Pension Systems. •The Municipal Fire and Police Retirement System of Iowa (MFPRSI) Board of Trustees City contribution for Police and Fire retirement increased from 22.66% percent in FY 2025 to 22.68% percent in FY 2026 (general fund cost of $2,185 for Police and $1,821 for Fire or a total of $4,007). Policy Guidelines 355 Page 720 of 1094 •The Iowa Public Employee Retirement System (IPERS) City contribution is unchanged from the FY 2025 contribution rate of 9.44% (no general fund impact). The IPERS employee contribution is unchanged from the FY 2025 contribution rate of 6.29% (which does not affect the City’s portion of the budget). The IPERS rate is anticipated to increase 1 percent each succeeding year. b)Collective Bargaining and Non-Represented. The already approved collective bargaining agreements for Dubuque Professional Fire Fighters Association and International Union of Operating Engineers include a 3.50% wage increase. The already approved collective bargaining agreement for the Dubuque Police Protective Association includes a 5% wage increase. The Teamsters Local Union No. 120 Bus Operators and Teamsters Local Union No. 120 are in contract negotiations. Non-represented employees include a 3.00% wage increase. 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. Total cost of the wage increases for collective bargaining and non-represented employees, and classification and compensation study is $2,026,133 to the General Fund. c)Health Insurance. The City portion of health insurance expense is projected to remain unchanged from $1,119 per month per contract to $1,119 per month per contract (based on 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%. d)Five-Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible retirees with at least twenty years of continuous service in a full-time position or employees who retired as a result of a disability and are eligible for pension payments from the pension system can receive payment of their sick leave balance with a maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick leave payout expense budget in the General Fund in FY 2025 was $283,061 as compared to FY 2026 of $288,742, based on qualifying employees officially giving notice of retirement. Policy Guidelines 356 Page 721 of 1094 e)50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick leave payout expense budget in the General Fund in FY 2025 was $124,908 as compared to FY 2026 of $128,496, based on FY 2025 year-to-date expense. f)Parental Leave. Effective March 8, 2019, employees may use Parental leave to take paid time away from work for the birth or the adoption of a child under 18 years old. Eligible employees receive their regular base pay (plus longevity) and benefits for twelve weeks following the date of birth, adoption event or foster-to-adopt placement. If both parents are eligible employees, each receive the leave benefit. There is no parental leave expense budgeted in the General Fund based on departments covering parental leave with existing employees and not incurring additional cost for temporary help. g)Supplies & Services. General operating supplies and services are estimated to increase 2% over actual in FY 2024. A 2% increase is estimated in succeeding years. h)Electricity. Electrical energy expense is estimated to increase 16% over FY 2024 actual expense, then 2% per year beyond. i)Natural Gas. Natural gas expense is estimated to increase 36% over FY 2024 actual then 2% per year beyond. j)Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will continue at 50% of actual hotel/motel tax receipts. k)Equipment & Machinery. Equipment costs for FY 2026 are estimated to decrease 22.45% under FY 2025 budget, then remain constant per year beyond. l)Debt Service. Debt service is estimated based on the tax-supported, unabated General Obligation bond sale for fire truck and franchise fee litigation settlement. m)Unemployment. Unemployment expense in the General Fund decreased from $33,922 in FY 2025 to $23,824 in FY 2026 based on estimated premium for FY2025. n)Motor Vehicle Fuel. Motor vehicle fuel is estimated to decrease 9% under the FY 2025 budget, then increase 2.0% per year beyond. o)Motor Vehicle Maintenance. Motor vehicle maintenance is estimated to increase 1% from the FY 2025 budget based on FY 2024 actual, then increase 2.0% per year and beyond. p)Public Transit. The decrease in property tax support for Transit from FY 2025 to FY 2026 is $34,152, 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 ($138,076); decrease in supplies and services ($41,013); a reduction in equipment replacements ($18,576), an increase in passenger fare revenue ($20,693). The following is a ten-year history of the Transit subsidy: Policy Guidelines 357 Page 722 of 1094 : Fiscal Year Amount % Change 2026 Projection $ 1,927,336 (3.10) % 2025 Budget $ 1,961,488 26.70 % 2024 Actual $ 1,548,127 (1.52) % 2023 Actual $ 1,571,981 (1.83) % 2022 Actual $ 1,601,290 (2.09) % 2021 Actual $ 1,635,441 4.94 % 2020 Actual $ 1,558,460 (0.82) % 2019 Actual $ 1,571,307 (0.10) % 2018 Actual $ 1,572,825 34.10 % 2017 Actual $ 1,172,885 24.41 % 2016 Actual $ 942,752 (13.20) % 2015 Actual $ 1,086,080 45.51 % q)Shipping & Postage. Postage rates for FY 2026 are estimated to increase 3% over FY 2024 actual expense and proposed cost increases by United States Postal Service. A 3.0 percent increase is estimated in succeeding years. r)Insurance. Insurance costs are estimated to change as follows: •Workers Compensation is increasing 6.88% based on rate change. •General Liability is increasing 1.25% based on FY 2025 actual plus 1.25%. •Damage claims is increasing 35.26% based on a three year average. •Property insurance is decreasing based on FY 2025 actual less 1%. s)Housing. The Housing Choice Voucher subsidy payment from the General Fund is estimated to increase $78,583 in FY 2026. The budgeted administrative cost of the Housing Choice Voucher Program increased from $875,932 in FY 2025 to $909,225 in FY 2026. Administrative revenue of the Housing Choice Voucher Program decreased from $759,336 in FY 2025 to $713,338 in FY 2026. The resulting Housing Choice Voucher Program deficit increased from $116,596 in FY 2025 to $195,887 in FY 2026. This deficit is funded by property taxes. t)Media Services Fund. The Media Services Fund no longer funds Police and Fire public education, Information Services, Health Services, Building Services, Legal Services, and City Manager’s Office due to reduced revenues from the cable franchise. In FY26, the Media Services Fund will no longer fund Communication Department positions and positions have been shifted to the General Fund with a partial offset to administrative overhead recharges to enterprise funds. This is due to Mediacom’s conversion from a Dubuque franchise to a state franchise in October 2009 which changed the timing and calculation of the franchise fee payments. Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is expended, the City will be responsible for all City Media Service equipment replacement costs. Other jurisdictions will need to plan accordingly. Policy Guidelines 358 Page 723 of 1094 u)Communications Department. In Fiscal Year 2026, Cable Utility Franchise Tax revenue paid to the City by Mediacom and ImOn, as required by the state franchise fee agreement, will no longer be enough to support Communications Department employee expense. A vacant part-time (0.75 FTE) Communications Assistant position is recommended to be eliminated. All remaining Cable Utility Franchise Tax supported positions are recommended to be moved to the General Fund. This General Fund expense will be partially offset by administrative overhead recharges to the enterprise funds. The Cable Utility Franchise Tax revenue will support Communications Department supplies and services only going forward. v)Greater Dubuque Development Corporation. Greater Dubuque Development Corporation support of $836,135 is budgeted to be paid mostly from Dubuque Industrial Center Land Sales in FY 2026, with $26,500 for True North strategy paid from the Greater Downtown TIF. In FY 2027 and beyond Greater Dubuque Development Corporation will be paid from the Greater Downtown TIF and Dubuque Industrial Center West land sales. PROPERTY TAX IMPACT The recommended Fiscal Year 2026 property tax rate increased 1.38% and will have the following impact: FY 2026 FY 2025 % Change $ Change Property Tax Rate $ 10.06372 $ 9.92638 1.38 %$ 0.1373 Average Residential Payment $ 889.20 $ 855.82 3.90 %$ 33.38 Average Commercial Payment $ 4,253.76 $ 4,179.49 1.78 %$ 74.26 Average Industrial Property $ 5,090.27 $ 5,004.59 1.71 %$ 85.68 Historical Impact on Tax Askings and Average Residential Property Tax Rates The following is a historical City tax rate comparison. The average percent change in tax rate from 1987– 2026 is -0.88%. The average annual change over the last five years is -0.14%. The following pages show historical and projected property tax impacts. Policy Guidelines 359 Page 724 of 1094 Historical Impacts on Tax Askings & Average Residential Property Tax Rates: Historical Impact on Tax Askings & Average Residential Property Tax Rates % Change in Tax Rate City Tax Rate (18.00)%(15.00)%(12.00)%(9.00)%(6.00)%(3.00)%—%3.00%6.00%9.00% FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY2025 FY2026 $—$2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 Policy Guidelines 360 Page 725 of 1094 Historical City tax rates and % change in tax rate: FY 1987 14.5819 FY 1988 13.9500 -4.33% FY 1989 11.8007 -15.41% FY 1990 11.6891 -0.95% FY 1991 12.2660 +4.94% FY 1992 12.7741 +4.14% FY 1993 12.4989 -2.15% FY 1994 12.6059 +0.86% FY 1995 11.7821 -6.54% FY 1996 11.7821 0.00% FY 1997 11.3815 -3.40% FY 1998 11.4011 +0.17% FY 1999 11.0734 -2.87% FY 2000 10.7160 -3.23% FY 2001 11.0671 +3.28% FY 2002 10.7608 -2.77% FY 2003 10.2120 -5.10% FY 2004 10.2730 +0.60% FY 2005 10.0720 -1.96% FY 2006 9.6991 -3.70% FY 2007 9.9803 +2.90% FY 2008 10.3169 +3.37% FY 2009 9.9690 -3.37% FY 2010 9.8577 -1.12% FY 2011 10.0274 +1.72% FY 2012 10.4511 +4.23% FY 2013 10.7848 +3.19% FY 2014 11.0259 +2.24% FY 2015 11.0259 0.00% FY 2016 11.0259 0.00% FY 2017 11.1674 +1.28% FY 2018 10.8922 -2.46% FY 2019 10.5884 -2.79% FY 2020 10.3314 -2.43% FY 2021 10.1440 -1.81% FY 2022 9.8890 -2.51% FY 2023 9.7169 -1.74% FY 2024 9.9014 +1.90% FY 2025 9.9264 +0.25% FY 2026 10.0637 +1.38% 1987 - 2026 Average Change -0.88% 2022-2026 Average Change -0.14% Fiscal Year City Tax Rate % Change in Tax Rate Policy Guidelines 361 Page 726 of 1094 From Fiscal Year 1987 through Fiscal Year 2026, the average annual change in the property tax rate is a decrease of 0.88%. Over the last five years, the average annual change in the property tax rate is a decrease of 0.14%. Projected Impacts on Tax Askings and Average Residential Property Tax Rates Project Impacts on Tax Askings & Average Residential Property Tax Rates % Change in Tax Rate City Tax Rate FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 —% 2.00% 4.00% 6.00% 8.00% $— $4.00 $8.00 $12.00 $16.00 Projected City tax rates and % change in tax rate*: Fiscal Year City Tax Rate % Change in Tax Rate FY 2026 10.0637 1.38% FY 2027 10.5957 5.29% FY 2028 11.0623 4.40% FY 2029 11.1686 0.96% FY 2030 11.4436 2.43% *Significantly impacted by the budget projection that the State of Iowa began eliminating the property tax backfill payments beginning in FY 2023. Policy Guidelines 362 Page 727 of 1094 IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE FY 1989 “City” Property Tax $ 453.99 -11.40 %$ -58.39 FY 1990 “City” Property Tax $ 449.94 -0.89 %$ -4.04 FY 1991*“City” Property Tax*$ 466.92 +3.77 %$ +16.98 FY 1992 “City” Property Tax $ 483.63 +3.58 %$ +16.71 FY 1993*“City” Property Tax*$ 508.73 +5.19 %$ +25.10 FY 1994 “City” Property Tax $ 510.40 +0.33 %$ +1.51 FY 1995*“City” Property Tax*$ 522.65 +2.40 %$ +12.41 FY 1996 “City” Property Tax $ 518.10 -0.87 %$ -4.54 FY 1997*“City” Property Tax*$ 515.91 -0.42 %$ -2.19 FY 1998 “City” Property Tax $ 512.25 -0.71 %$ -3.66 FY 1999 “City” Property Tax*$ 512.25 0.00 %$ — FY 2000 “City” Property Tax $ 511.38 -0.17 %$ -0.87 FY 2001 “City” Property Tax $ 511.38 0.00 %$ — FY 2002 “City” Property Tax $ 511.38 0.00 %$ — FY 2003 “City” Property Tax*$ 485.79 -5.00 %$ -25.58 FY 2004 “City” Property Tax $ 485.79 0.00 %$ — With Homestead Adj.$ 493.26 +1.54 %$ +7.46 FY 2005 “City” Property Tax*$ 485.93 +0.03 %$ +0.14 With Homestead Adj.*$ 495.21 +0.40 %$ +1.95 FY 2006 “City” Property Tax (1)$ 494.27 +1.72 %$ +8.34 With Homestead Adj. (1)$ 504.62 +1.90 %$ +9.41 FY 2007 “City” Property Tax*(2)$ 485.79 -1.72 %$ -8.48 With Homestead Adj.*$ 496.93 -1.52 %$ -7.69 FY 2008 “City” Property Tax $ 496.93 0.00 %$ — With Homestead Adj.$ 510.45 +2.72 %$ +13.52 FY 2009 “City” Property Tax $ 524.53 +2.76 %$ +14.08 With Homestead Adj.$ 538.07 +5.41 %$ +27.62 FY 2010 “City” Property Tax $ 538.07 0.00 %$ — With Homestead Adj.$ 550.97 +2.40 %$ +12.90 FY 2011 “City” Property Tax $ 564.59 +2.47 %$ +13.62 With Homestead Adj. (3)$ 582.10 +5.65 %$ +31.13 FY 2012 “City” Property Tax $ 611.19 +5.00 %$ +29.09 With Homestead Adj. (3)$ 629.78 +8.19 %$ +47.68 FY 2013 “City” Property Tax $ 661.25 +5.00 %$ +31.47 With Homestead Adj. (3)$ 672.76 +6.82 %$ +42.98 FY 2014 “City” Property Tax $ 705.71 +4.90 %$ +32.95 Actual - Historical City Tax Calculation Actual Percent Change Change if HTC 100% Funded Dollar Change Policy Guidelines 363 Page 728 of 1094 FY 2015 “City” Property Tax $ 728.48 +3.23 %$ 22.77 FY 2016 “City” Property Tax $ 747.65 +2.63 %$ +19.17 FY 2017 “City” Property Tax $ 755.70 +1.08 %$ +8.05 FY 2018 “City” Property Tax $ 755.70 0.00 %$ — FY 2019 “City” Property Tax $ 770.17 +1.91 %$ +14.47 FY 2020 “City” Property Tax $ 770.17 0.00 %$ — FY 2021 “City” Property Tax $ 769.08 -0.14 %$ -1.09 FY 2022 “City” Property Tax $ 769.08 0.00 %$ — FY 2023 “City” Property Tax $ 791.82 +2.96 %$ +22.74 FY 2023 “City” Property Tax $ 815.07 0.00 %$ +23.25 FY 2025 “City” Property Tax $ 855.82 +5.00 %$ +40.75 Average FY1989-FY2025 with Homestead Adj. +1.45 % +928.27 % Average FY2021-FY2025 with Homestead Adj. +2.15 % +1713.00 % Average FY1989-FY2025 without Homestead Adj. +0.96 % +661.51 % Actual - Historical City Tax Calculation Actual Percent Change Change if HTC 100% Funded Dollar Change The average annual dollar change in residential property tax from 1989-2025 is an increase of $9.28. The average annual dollar change over the last five years is an increase of $17.13. Projected impact on average residential property: PROJECTION CITY TAX CALCULATION DOLLAR CHANGE FY 2026 “City” Property Tax $ 889.20 +3.90 %$ 33.38 FY 2027 “City” Property Tax $ 936.20 +5.29 %$ +47.00 FY 2028 “City” Property Tax $ 977.43 +4.40 %$ +41.23 FY 2029 “City” Property Tax $ 986.82 +0.96 %$ +9.39 FY 2030 “City” Property Tax $ 1,011.12 +2.46 %$ +24.30 * Denotes year of State-issued equalization orders. ^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%. (1) The FY 2006 property tax calculation considers the 6.2% valuation increase for the average residential homeowner as determined by the reappraisal. (2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006. (3) The City adopted a budget in FY 2011 and 2012 that provided no increase to the average homeowner. The State of Iowa underfunded the Homestead Property Tax Credit in both years costing the average homeowner an additional $18.59 in FY 2012 and $11.51 in FY 2013. This provided no additional revenues to the City, as this money would have come to the City from the State if they appropriated the proper amount of funds. Policy Guidelines 364 Page 729 of 1094 Homestead Property Tax Credit The Homestead Property Tax Credit was established by the state legislature to reduce the amount of property tax collected. The intent of the credit was to be a form of tax relief and provide an incentive for home ownership. The State Homestead Property Tax Credit works by discounting the tax collected on the first $4,850 of a property’s taxable value. This has no impact on what the City receives from property tax collections, but provides tax relief for the average homeowner. Beginning FY 2004, the State of Iowa did not fully fund the State Homestead Property Tax Credit resulting in the average homeowner paying the unfunded portion. Again, this has no impact on what the City receives, however as a result has caused the average homeowner to pay more taxes. Historical Percent of Iowa Homestead Property Tax Credit Funded by the State of Iowa 100% 85% 81% 78% 77% 73% 72% 72% 64% 62% 78% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Percent Funded —%10%20%30%40%50%60%70%80%90%100%110% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Policy Guidelines 365 Page 730 of 1094 IMPACT ON COMMERCIAL PROPERTY - EXAMPLE ACTUAL - HISTORICAL CITY TAX CALCULATION * BUSINESS PROPERTY TAX CREDIT DOLLAR CHANGE PERCENT CHANGE FY 1989 “City” Property Tax $ 2,106.42 $ -384.19 -15.43 % FY 1990 “City” Property Tax $ 2,086.50 $ -19.92 -0.95 % FY 1991 “City” Property Tax $ 2,189.48 $ +102.98 +4.94 % FY 1992 “City” Property Tax $ 2,280.18 $ +90.70 +4.14 % FY 1993 “City” Property Tax $ 2,231.05 $ -49.13 -2.15 % FY 1994 “City” Property Tax $ 2,250.15 $ +19.10 +0.86 % FY 1995 “City” Property Tax $ 2,439.60 $ +189.45 +8.42 % FY 1996 “City” Property Tax $ 2,439.60 $ — 0.00 % FY 1997 “City” Property Tax $ 2,659.36 $ +219.76 +9.01 % FY 1998 “City” Property Tax $ 2,738.43 $ +79.07 +2.97 % FY 1999 “City” Property Tax $ 2,952.03 $ +213.60 +7.80 % FY 2000 “City” Property Tax $ 2,934.21 $ -17.82 -0.60 % FY 2001 “City” Property Tax $ 2,993.00 $ +58.86 +2.00 % FY 2002 “City” Property Tax $ 2,910.25 $ -82.84 -2.76 % FY 2003 “City” Property Tax $ 3,186.27 $ +276.03 +9.48 % FY 2004 “City” Property Tax $ 3,278.41 $ +92.15 +2.89 % FY 2005 “City” Property Tax $ 3,349.90 $ +71.48 +2.18 % FY 2006 “City” Property Tax (1)$ 3,152.52 $ -197.38 -5.89 % FY 2007 “City” Property Tax $ 3,538.03 $ +385.50 +12.23 % FY 2008 “City” Property Tax $ 3,688.64 $ +150.62 +4.26 % FY 2009 “City” Property Tax $ 3,554.71 $ -133.94 -3.63 % FY 2010 “City” Property Tax $ 3,524.48 $ -30.23 -0.85 % FY 2011 “City” Property Tax $ 3,585.16 $ +60.68 +1.72 % FY 2012 “City” Property Tax $ 3,736.64 $ +151.48 +4.23 % FY 2013 “City” Property Tax $ 3,855.96 $ +119.32 +3.19 % FY 2014 “City” Property Tax $ 3,942.14 $ +86.20 +2.23 % FY 2015 “City” Property Tax (2)$ 3,896.93 $ 147.72 $ -45.21 -1.15 % FY 2016 “City” Property Tax (3)$ 3,139.16 $ 692.62 $ -757.77 -19.45 % FY 2017 “City” Property Tax (4)$ 3,364.61 $ 982.19 $ +225.45 +7.18 % FY 2018 “City” Property Tax (5)$ 3,280.44 $ 959.11 $ -84.16 -2.50 % FY 2019 “City” Property Tax (6)$ 3,278.23 $ 843.08 $ -2.21 -0.07 % FY 2020 “City” Property Tax (7)$ 3,160.71 $ 860.57 $ -117.52 -3.58 % FY 2021 “City” Property Tax (8)$ 3,169.30 $ 779.03 $ +8.59 +0.27 % FY 2022 “City” Property Tax (9)$ 3,069.57 $ 779.50 $ -99.73 -3.15 % FY 2023 “City” Property Tax (10)$ 3,060.34 $ 721.73 $ -9.23 -0.30 % FY 2024 “City” Property Tax (11)$ 3,328.86 $ +268.52 +8.77 % FY 2025 “City” Property Tax (11)$ 4,179.49 $ +850.63 +25.55 % FY 1989-2025 Average Change $ +45.65 +1.67 % 2021-2025 Average Change $ +203.76 +6.23 % *Net of Business Property Tax Credit The average annual dollar change in commercial property taxes from 1989-2025 is a increase of $45.65. The average annual dollar change over the last five years is a increase of +$203.76. Policy Guidelines 366 Page 731 of 1094 Projected impact on average commercial property: PROJECTED CITY TAX CALCULATION DOLLAR CHANGE PERCENT CHANGE FY 2026 “City” Property Tax $ 4,253.76 $ 74.27 $ +0.02 FY 2027 “City” Property Tax $ 4,478.59 $ 224.83 $ +0.07 FY 2028 “City” Property Tax $ 4,675.83 $ 197.24 $ +0.04 FY 2029 “City” Property Tax $ 4,720.79 $ 44.96 $ +0.01 FY 2030 “City” Property Tax $ 4,837.02 $ 116.23 $ +0.02 (1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial property as determined by the reappraisal. (2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015. (3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016. (4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017. (5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018. (6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019. (7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020. (8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021. (9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022. (10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023. (11)From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property taxes owed and the credit was funded by the State of Iowa. Beginning in FY 2024, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past.The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remained the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. Lawmakers believe the new standing general fund will exceed the projected level of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2024 is estimated to be $587,446. Policy Guidelines 367 Page 732 of 1094 IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE ACTUAL - HISTORICAL CITY TAX CALCULATION * BUSINESS PROPERTY TAX CREDIT DOLLAR CHANGE PERCENT CHANGE FY 1989 "City" Property Tax $ 5,900.35 $ -1,074.65 -15.40 % FY 1990 "City" Property Tax $ 5,844.55 $ -55.80 -0.95 % FY 1991 "City" Property Tax $ 6,133.00 $ +288.45 +4.94 % FY 1992 "City" Property Tax $ 6,387.05 $ +254.05 +4.14 % FY 1993 "City" Property Tax $ 6,249.45 $ -137.60 -2.15 % FY 1994 "City" Property Tax $ 6,302.95 $ +53.50 +0.86 % FY 1995 "City" Property Tax $ 5,891.05 $ -411.90 -6.54 % FY 1996 "City" Property Tax $ 5,891.05 $ — 0.00 % FY 1997 “City” Property Tax $ 5,690.75 $ -200.30 -3.40 % FY 1998 “City” Property Tax $ 5,700.56 $ +9.81 +0.17 % FY 1999 “City” Property Tax $ 5,536.70 $ -163.86 -2.87 % FY 2000 “City” Property Tax $ 5,358.00 $ -178.70 -3.23 % FY 2001 “City” Property Tax $ 5,533.00 $ +175.00 +3.27 % FY 2002 “City” Property Tax $ 5,380.42 $ -152.58 -2.76 % FY 2003 “City” Property Tax $ 5,106.00 $ -274.42 -5.10 % FY 2004 “City” Property Tax $ 5,136.50 $ +30.50 +0.60 % FY 2005 “City” Property Tax $ 5,036.00 $ -100.50 -1.96 % FY 2006 “City” Property Tax (1)$ 5,814.61 $ +778.61 +15.46 % FY 2007 “City” Property Tax $ 5,983.21 $ +168.60 +2.90 % FY 2008 “City” Property Tax $ 6,184.95 $ +201.74 +3.37 % FY 2009 “City” Property Tax $ 5,976.44 $ -208.51 -3.37 % FY 2010 “City” Property Tax $ 5,909.69 $ -66.75 -1.12 % FY 2011 “City” Property Tax $ 6,011.44 $ +101.75 +1.72 % FY 2012 “City” Property Tax $ 6,265.43 $ +253.99 +4.23 % FY 2013 “City” Property Tax $ 6,465.48 $ +200.05 +3.19 % FY 2014 “City” Property Tax $ 6,610.00 $ +144.52 +2.24 % FY 2015 “City” Property Tax (2)$ 6,131.80 $ 147.72 $ -478.20 -7.23 % FY 2016 “City” Property Tax (3)$ 5,256.41 $ 692.62 $ -875.39 -14.28 % FY 2017 “City” Property Tax (4)$ 5,043.36 $ 982.19 $ -213.05 -4.05 % FY 2018 “City” Property Tax (5)$ 4,917.78 $ 959.11 $ -125.58 -2.49 % FY 2019 “City” Property Tax (6)$ 4,869.91 $ 843.08 $ -47.87 -0.97 % FY 2020 “City” Property Tax (7)$ 4,713.76 $ 860.57 $ -156.15 -3.21 % FY 2021 “City” Property Tax (8)$ 4,694.17 $ 779.03 $ -19.59 -0.42 % FY 2022 “City” Property Tax (9)$ 4,556.11 $ 779.50 $ -138.06 -2.94 % FY 2023 “City” Property Tax $ 4,521.00 $ 721.73 $ -35.11 -0.77 % FY 2023 “City” Property Tax $ 4,817.26 $ 721.73 $ -35.11 -0.77 % FY 2025 “City” Property Tax $ 5,004.59 $ +187.33 +3.89 % FY 1989-2025 Average Change $ -53.25 -0.75 % 2021-2025 Average Change $ +58.17 +1.26 % *Net of Business Property Tax Credit The average annual dollar change in industrial property taxes from 1989-2025 is a decrease of $53.25. The average annual dollar change over the last five years is a increase of $58.17. Policy Guidelines 368 Page 733 of 1094 Projected impact on average industrial property: PROJECTED CITY TAX CALCULATION DOLLAR CHANGE PERCENT CHANGE FY 2026 “City” Property Tax $ 5,090.27 $ +85.68 +1.71 % FY 2027 “City” Property Tax $ 5,359.33 $ +369.16 +7.25 % FY 2028 “City” Property Tax $ 5,595.34 $ +238.23 +4.36 % FY 2029 “City” Property Tax $ 5,649.15 $ +56.77 +1.00 % FY 2030 “City” Property Tax $ 5,788.24 $ +141.20 +2.45 % (1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial property as determined by the reappraisal. (2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015. (3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016. (4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017. (5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018. (6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019. (7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020. (8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021. (9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022. (10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023. (11) From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property taxes owed and the credit was funded by the State of Iowa. Beginning in FY 2024, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past.The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remained the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. Lawmakers believe the new standing general fund will exceed the projected level of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2024 is estimated to be $587,446. IMPACT ON MULTI-RESIDENTIAL PROPERTY - EXAMPLE ACTUAL – HISTORICAL CITY TAX CALCULATION DOLLAR CHANGE PERCENT CHANGE FY 2015 "City" Property Tax $ 2,349.34 FY 2016 "City" Property Tax $ 2,225.69 $ -123.65 -5.26 % FY 2017 "City" Property Tax $ 2,160.39 $ -65.30 -2.93 % FY 2018 "City" Property Tax $ 2,015.48 $ -144.91 -6.71 % FY 2019 "City" Property Tax $ 1,870.21 $ -145.27 -7.21 % FY 2020 "City" Property Tax $ 1,737.92 $ -132.29 -7.07 % FY 2021 "City" Property Tax $ 1,896.65 $ +158.73 +9.13 % FY 2022 "City" Property Tax $ 1,751.66 $ -144.99 -7.64 % FY 2023 "City" Property Tax $ 1,625.55 $ -126.11 -7.20 % FY 2024 "City" Property Tax $ 1,419.97 $ -205.58 -12.65 % Average FY 2016-FY 2024 $ -103.26 -5.28 % Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax classification for rental properties called multi-residential, which requires a rollback, or assessment limitations order, on multi-residential property which will eventually equal the residential rollback. Multi-residential property includes apartments with 3 or more units. Rental properties of 2 units were already classified as residential property. Policy Guidelines 369 Page 734 of 1094 The State of Iowa will not backfill property tax loss from the rollback on multi-residential property. The rollback will occur as follows: Fiscal Year Rollback % Annual Loss of Tax Revenue FY 2017 86.25%$ 331,239.03 FY 2018 82.50% 472,126.87 FY 2019 78.75% 576,503.10 FY 2020 75.00% 691,639.58 FY 2021 71.25% 952,887.71 FY 2022 67.50% 752,366.11 FY 2023 63.75% 662,820.79 FY 2024 +54.65% 1,186,077.35 Total $ 5,625,661.00 *54.65% = Current residential rollback This annual loss in tax revenue of $1,186,077 from multi-residential property when fully implemented in FY 2024 will not be backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City will lose $5,625,661 in total, meaning landlords will have paid that much less in property taxes. The state did not require landlords to charge lower rents or to make additional investment in their property. In Fiscal Year 2024, the multi-residential property class was eliminated and is reported with the residential property class. Policy Guidelines 370 Page 735 of 1094 HISTORY OF INCREASES IN PROPERTY TAX ASKINGS Year Tax Askings % Change in Tax Askings Impact on Homeowner** FY 1989 $10,918,759 -12.00% -11.40 % Sales Tax Initiated FY 1990 $ 10,895,321 -0.21 % -0.89 % FY 1991 $ 11,553,468 +6.04 % +3.77 % FY 1992 $ 12,249,056 +6.02 % +3.58 % FY 1993 $ 12,846,296 +4.88 % +5.19 % FY 1994 $ 13,300,756 +3.54 % +0.33 % FY 1995 $ 13,715,850 +3.12 % +2.40 % FY 1996 $ 14,076,320 +2.63 % -0.87 % FY 1997 $ 14,418,735 +2.43 % -0.42 % FY 1998 $ 14,837,670 +2.91 % -0.71 % FY 1999 $ 15,332,806 +3.34 % 0.00 % FY 2000 $ 15,285,754 -0.31 % -0.17 % FY 2001 $ 15,574,467 +1.89 % 0.00 % FY 2002 $ 15,686,579 +0.72 % 0.00 % FY 2003 $ 15,771,203 +0.54 % -5.00 % FY 2004 $ 16,171,540 +2.54 % 0.00 % FY 2005 $ 16,372,735 +1.24 % +0.03 % FY 2006 $ 16,192,215 -1.10 % +1.72 % FY 2007 $ 17,179,994 +6.10 % -1.72 % FY 2008 $ 18,184,037 +5.84 % 0.00 % FY 2009 $ 18,736,759 +3.04 % +2.76 % FY 2010 $ 19,095,444 +1.91 % 0.00 % FY 2011 $ 19,878,962 +4.10 % +2.47 % FY 2012 $ 21,284,751 +7.07 % +5.00 % FY 2013 $ 22,758,753 +6.93 % +5.00 % FY 2014 $ 23,197,623 +1.93 % +4.90 % FY 2015 $ 24,825,015 +7.02 % +3.23 % FY 2016 $ 24,906,544 +0.33 % +2.63 % FY 2017 $ 26,375,291 +5.90 % +1.08 % FY 2018 $ 25,863,049 -1.94 % 0.00 % FY 2019 $ 26,494,205 +2.44 % +1.91 % FY 2020 $ 26,296,081 -0.75 % 0.00 % FY 2021 $ 26,202,568 -0.36 % -0.14 % FY 2022 $ 26,215,401 +0.05 % 0.00 % FY 2023 $ 26,215,887 0.00 % +2.96 % FY 2023 $ 28,223,481 0.00 % +2.94 % FY 2025 $ 28,233,757 +6.01 % +5.00 % Average FY 1989-2025 +2.71 % +0.96 % **Does not reflect State unfunded portion of Homestead Credit. Policy Guidelines 371 Page 736 of 1094 IMPACT ON TAX ASKINGS AND AVERAGE RESIDENTIAL PROPERTY To maintain the current level of service based on the previous assumptions would require the following property tax asking increases: Fiscal Year "City" Property Tax Askings % Change in Tax Askings % Impact on Avg. Residential Property $ Impact on Avg. Residential Property FY 2025 $ 29,861,915 +5.77 % +5.00 %$ +40.75 FY 2026 $ 32,052,686 +7.34 % +3.90 %$ +33.38 FY 2027 $ 34,130,077 +6.48 % +5.29 %$ +47.00 FY 2028 $ 35,146,352 +2.98 % +4.40 %$ +41.23 FY 2029 $ 36,723,553 +4.49 % +23.56 %$ +16.47 GUIDELINE The recommended guideline is a 3.90% or $33.38 increase for the average residential property owner assuming the Homestead Property Tax Credit is fully funded. A one percent increase in the tax rate will generate approximately $294,092. These guidelines include an estimated $897,297 for improvement packages funded by property taxes, although this figure may change as the FY2026 budget is not yet finalized. Iowa House File 718 passed during the 2023 legislative sessions, replaces previous changes made through Iowa Senate File 634 passed during the 2019 legislative sessions, makes changes to Iowa city and county budgets and taxes for Fiscal Year 2025 and later. Additional steps have been added to the budget approval process. The City of Dubuque is specifically impacted by the following steps of this new legislation: 1.Limits the General Fund levy by constraining growth by 2% or 3% each year, depending on the trigger hit: Non-TIF taxable growth under 3%, no reduction Non-TIF taxable growth over 3% but less than 6%, 2% reduction factor applied Non-TIF taxable growth over 6%, 3% reduction factor is applied The City of Dubuque Non-TIF taxable growth for FY2026 is 4.39%, the General Fund levy is constrained by a growth reduction factor of 2%. The General Fund levy for FY2026 is $7.78547 instead of the maximum levy of $8.10. Although the City is restricted to $7.78547 in the General Fund levy, the City has the flexibility to levy up to $16.0 million or a levy rate of $5.4174 in the Special Revenue Levies for employee benefits. In Fiscal Year 2025, the Special Revenue levy was $0.70307 and totaled $2.0 million. Any reduction in the General Fund levy can be shifted to the Special Revenue levies. 2.March 5: Cities must file a report with Iowa Department of Management containing information specified by new law to be contained in mailings. Policy Guidelines 372 Page 737 of 1094 3.March 20: County Auditor must send each property owner or taxpayer with the county by regular mail an individual statement with the specified information broken out by political subdivision comprising the taxpayer’s district. 4.Taxpayer Statements must include: •Total Current Year Tax Rate and Dollars •Combined effective property tax rate for the city calculated using the sum of the current fiscal year’s actual property tax certified for levy of all of city’s levies •Proposed Budget Year Tax Rate and Dollars •If the Proposed Budget Property Tax Dollars exceed the current fiscal year’s actual property tax dollars, a detailed statement of the major reasons for the increase, including the specific purposes or programs for which the city is proposing an increase •An example comparing the amount of property taxes on a residential property with an actual value of $100,000 in the current fiscal year and such amount on the residential property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. •An example comparing the amount of property taxes on a commercial property with an actual value of $100,000 in the current fiscal year and such amount on the commercial property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. •The city’s percentage of total property taxes certified for levy in the owner’s or taxpayer’s taxing district in the current fiscal year amount all taxing authorities. •The date, time, and location of the city’s public hearing on the information contained in the statements. •Information on how to access the city’s internet site, the city’s statements, and other budget documents for prior fiscal years. 5.Public hearing on proposed property tax amounts for the budget year and new taxpayer statements. •In addition to public hearing to adopt the budget. •Replaces maximum property tax dollars public hearing held in prior years. •Must be separate from any other meeting of City Council, including any other meeting or hearing related to the budget. •City Council can decrease, but not increase, the proposed property tax amount to be included in the budget. 6.Budget Certification deadline to Iowa Department of Management is April 30th instead of March 31st. •If City is issuing new debt that uses the debt service levy, budget must be adopted by April 15th. Policy Guidelines 373 Page 738 of 1094 CAPITAL IMPROVEMENT BUDGET GUIDELINES T.INTEGRATION OF CAPITAL RESOURCES GUIDELINE To obtain maximum utilization, coordination and impact of all capital improvement resources available to the City, state and federal block and categorical capital grants and funds shall be integrated into a comprehensive five-year Capital Improvement Program (CIP) for the City of Dubuque. U.INTEGRITY OF CIP PROCESS GUIDELINE The City shall make all capital improvements in accordance with an adopted Capital Improvement Program (CIP). If conditions change and projects must be added and/or removed from the CIP, the changes require approval by the City Council. V.RENOVATION AND MAINTENANCE GUIDELINE Capital improvement expenditures should concentrate on renovating and maintaining existing facilities to preserve prior community investment. W.NEW CAPITAL FACILITIES GUIDELINE Construction of new or expanded facilities which would result in new or substantially increased operating costs will be considered only if: 1) their necessity has been clearly demonstrated 2) their operating cost estimates and plans for providing those operating costs have been developed 3) they can be financed in the long term; and 4) they can be coordinated and supported within the entire system. X.COOPERATIVE PROJECTS GUIDELINE Increased efforts should be undertaken to enter mutually beneficial cooperative capital improvement projects with the county, school district and private groups. Examples include cost-sharing to develop joint-use facilities and cost-sharing to improve roads and bridges are examples. Y.USE OF GENERAL OBLIGATION BONDS DISCUSSION The Iowa Constitution limits the General Obligation debt of any city to 5% of the actual value of the taxable property within the city. The Iowa legislature has determined that the value for calculating the debt limit shall be the actual value of the taxable property prior to any "rollback" mandated by state statute. Policy Guidelines 374 Page 739 of 1094 On October 15, 2012, the City Council adopted a formal Debt Management Policy for the City of Dubuque. Prior to adoption of the formal policy, the City had already been practicing much of the policy, although the formal policy included some new additions. The most significant components of the Debt Management Policy include an internal policy of maintaining the City’s general obligation outstanding debt at no more than 95% (except as a result of disasters) of the limit prescribed by the State constitution as of June 30th of each year. It is projected as of June 30, 2025 the City will be at 34.10%. City will not use short-term borrowing to finance operating needs except in the case of an extreme financial emergency which is beyond its control or reasonable ability to forecast. Currently there is no such debt, and none will be recommended in this process. Bond Financing Stipulations •Recognizing that bond issuance costs (bond counsel, bond rating, and financial management fees) add to the total interest costs of financing: •Bond financing should not be used if the aggregate cost of projects to be financed by the bond issue is less than $500,000 •City will consider long-term financing for the construction, acquisition, maintenance, replacement, or expansion of physical assets (including land) only if they have a useful life of at least six years •City shall strive to repay 20 percent of the principal amount of its general obligation debt within five years and at least 40 percent within ten years. •The City shall strive to repay 40 percent of the principal amount of its revenue debt within ten years. Debt Service Payments Total annual debt service payments on all outstanding debt of the City shall not exceed 25% of total annual receipts across all the City’s funds. As of June 30, 2025, it is projected the City will be at 15% Internal Reserve It shall be the goal of the City to establish an internal reserve equal to maximum annual debt service on future general obligation bonds issued that are to be abated by revenues and not paid from ad-valorem property taxes in the debt service fund. This shall begin with debt issued after July 1, 2013. This reserve shall be established by the fund or revenue source that expects to abate the levy, and shall be carried in said fund or revenue source on the balance sheet as a restricted reserve. This reserve does not exist now, except where required by bond covenants. This internal reserve would be implemented by adding the cost of the reserve to each debt issuance. Policy Guidelines 375 Page 740 of 1094 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%. 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. General Obligation Debt Fiscal Year 2026 Debt FY 2026 Debt Limit: The FY 2024 assessable value of the community for calculating the statutory debt limit is $6,472,591,693, which at 5%, indicates a total General Obligation debt capacity of $323,629,585. Policy Guidelines 376 Page 741 of 1094 Based on Outstanding G.O. debt (including tax increment debt, remaining payments on economic development TIF rebates, and general fund lease agreement) on June 30, 2026 will be $ $108,410,164 (33.50% of the statutory debt limit) leaving an available debt capacity of $215,219,421 (66.50%). It should be noted that most of the City of Dubuque’s outstanding debt is not paid for with property taxes (except TIF), but is abated from other revenues. Exceptions include one issuance for the replacement of a Fire Pumper truck in the amount of $1,410,000 with debt service of $95,421 in FY 2026 and one issuance for the franchise fee litigation settlement in the amount of $2,800,000 with debt service of $195,825 in FY 2026. Included in the debt is $4,661,120 of property tax rebates to businesses creating and retaining jobs and investing in their businesses. Statutory Debt Limit Fiscal Year Statutory Debt Limit Amount of Debt Subject to Statutory Debt Limit % Debt Limit Used 2025 $321,926,120 $109,764,274 34.10% 2026 $323,629,585 $108,410,164 33.50% FY26 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% The City also has debt that is not subject to the statutory debt limit. This debt includes revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater fees on June 30, 2026 will have a balance of $167,789,201. The total City indebtedness as of June 30, 2026, is projected to be $289,568,909. The total City indebtedness as of June 30, 2025, was $281,085,184. In FY 2026, the City will have a projected $8,483,725 or 3.02% more in debt. The City is using debt to accomplish necessary projects. The following chart shows Dubuque's relative position pertaining to use of the statutory debt limit for Fiscal Year 2026 compared to the other cities in Iowa for Fiscal Year 2024 with a population over 50,000: Fiscal Year 2024 Legal Debt Limit Comparison for Eleven Largest Iowa Cities Policy Guidelines 377 Page 742 of 1094 11 Des Moines (FY24)803564354 549760000 0.68415180098942 10 W. Des Moines (FY24)$ 551,635,692 $ 307,090,000 55.67 % 9 Cedar Rapids (FY 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 % Average w/o Dubuque $ 441,961,179 $ 204,301,929 42.48 % 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 Coun c i l B l u f f s Anke n y Ame s Dubu q u e Aver a g e w / o D u b u q u e Sioux C i t y Dave n p o r t W. De s M o i n e s Ceda r R a p i d s Water l o o Des M o i n e s 0% 25% 50% 75% 100% 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%). 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 a m o u n t o f 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. Policy Guidelines 378 Page 743 of 1094 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 Part of the City’s FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation Program. Through a new state program, the City is able to issue $28.25 million in revenue bonds payable from the 5 percent State Sales Tax increment for projects in the Bee Branch Watershed allowing the City to complete the Bee Branch Creek Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water Plant Flood Control and complete 17th Street Storm Sewer over the next twenty years. 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, neighborhood park developments, Federal Building renovations ($5,640,600), solid waste collection vehicles, sanitary sewer improvements ($78,399,027), water system projects ($15,956,673), stormwater improvements, parking improvements, renovation of Five Flags ($22,890,869), and Central Avenue improvements ($6,440,000). By far the greatest use of debt over the next five years is for sanitary sewer maintenance and improvements ($78,399,027). Policy Guidelines 379 Page 744 of 1094 Project FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total 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 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 Policy Guidelines 380 Page 745 of 1094 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. 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 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. 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: Policy Guidelines 381 Page 746 of 1094 Retired Debt Versus New Debt (In Millions) $1 7 . 7 2 $1 8 . 7 3 $2 0 . 2 6 $2 1 . 7 3 $2 4 . 4 9 $2 6 . 7 8 $2 8 . 3 6 $2 9 . 7 5 $3 0 . 1 4 $2 8 . 4 0 $2 3 . 4 2 $2 3 . 2 7 $2 3 . 6 6 $2 2 . 5 8 $1 5 . 8 0 $0 . 4 8 $7 . 9 9 $7 5 . 6 4 $2 9 . 1 9 $2 7 . 2 2 $3 6 . 8 6 $2 8 . 8 6 $3 0 . 0 3 $1 . 0 0 $1 . 0 0 $1 . 0 0 $1 . 0 0 $1 . 0 0 Retired Debt New Debt 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 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 $65.00 $70.00 $75.00 $80.00 $85.00 *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. As we approach the preparation of the FY 2026-2030 Capital Improvement Program (CIP) the challenge is not the City’s capacity to borrow money but (a) how to identify, limit, and prioritize projects which justify the interest payments and; (b) how to balance high-priority projects against their impact on the property tax rate. GUIDELINE There are many high priority capital improvement projects which must be constructed during the FY 2026 - FY 2030 period. The potential of partially forgivable State Revolving Fund Loans and an increase in grant funding may impact the need to borrow for projects. As in the past, debt will be required on several major capital projects, including the Bee Branch Watershed Project, Airport Improvements, Park Improvements, Sidewalk and Street Improvements, Sanitary Sewer Fund, Parking Fund, and Water Fund. Borrowings will also include smaller projects and equipment replacements such as Park developments and Public Works equipment. These smaller borrowings will be for a term not exceeding the life of the asset and not less than six years in accordance to the Debt Management Policy. Alternative sources of funds will always be evaluated (i.e. State Revolving Loan Funds) to maintain the lowest debt service cost. Policy Guidelines 382 Page 747 of 1094 AA. ROAD USE TAX FUND DISCUSSION Actual Road Use Tax Fund receipts are as follows: Road Use Tax (In Millions) $6.0 $5.7 $6.0 $7.3 $7.5 $7.4 $8.6 $8.2 $8.2 $8.4 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 FY 2015 FY 2014 FY 2015 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 The FY 2025 budget was based on receiving $8,400,000 in Road Use Tax funds. In FY 2025, 100% of the Road Use Tax income is in the operating budget. The State of Iowa increased the gas tax 10 cents per gallon in FY 2016. With increases in City DMATS and State Road Use Tax funds, the City will be able to substantially add to the number of street lights and continue with major road improvements. GUIDELINE It is preferable to shift Road Use Tax funds to the capital budget for street maintenance and repair to reduce the need to borrow funds for routine street maintenance and improvements. This shift cannot occur until there are increased revenues or reduced expense that would allow this shift without a property tax impact. BB. COMMERCIAL AND INDUSTRIAL DEVELOPMENT GUIDELINE Current City, commercial and industrial development efforts should be continued to (a) preserve current jobs and create new job opportunities and (b) enlarge and diversify the economic base. Financing these efforts and programs should continue to be a high priority. Policy Guidelines 383 Page 748 of 1094 CC. HOUSING GUIDELINE To maintain an adequate supply of safe and decent housing, the City should strive to preserve existing single family and rental housing that is not substandard and provide opportunities for development of new housing, including owner occupied, within the City's corporate limits for all residents, particularly for people of low and moderate income. Workforce rental housing is becoming increasingly important and the City provides incentives for building rehabilitations. In 2023, the City Council adopted housing incentive programs through the use of Tax Abatement and Tax Increment Financing. DD. SALES TAX GUIDELINE Sales Tax revenue shall be used according to the following split: Sales Tax 50%: Property Tax Relief Sales Tax 30%: (a) The reduction by at least 75% of street special assessments. (b) The maintenance and repair of streets. Sales Tax 20%: (a) The upkeep of City-owned property such as sidewalks, steps, storm sewers, walls, curbs, traffic signals and signs, bridges, buildings, and facilities (e.g. Airport, Five Flags Center, Library, Law Enforcement Center, City Hall, Fire Stations, Parks, and Swimming Pools). (b) Transit equipment, such as buses (c) Riverfront and wetland development (d) Economic Development Projects EE. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE DUBUQUE RACING ASSOCIATION DISCUSSION The contract with the Dubuque Racing Association calls for distribution at the end of its fiscal year, December 31st, of 50 percent of its net cash operating funds to the City of Dubuque. In early-February, the City receives payment of proceeds to be distributed. These proceeds are then allocated for capital improvements, with the highest priority given to reducing the City's annual borrowing. The Dubuque Racing Association provides the City with projections of future distributions. Since gaming is a highly volatile industry, the estimates are discounted prior to including them in the City’s Five-Year CIP. The February 2026 DRA distributions will be used in Fiscal Year 2026 to fund the implementation of the classification and compensation study and non-recurring improvement packages. This is a change from past use of DRA distributions because all funds will be used for Fiscal Year 2026 operations. A change from past use of DRA distributions, 0% of the February 2026 projections of operating surplus have been anticipated as resources to support the Fiscal Year 2026 capital improvement projects. The estimates received from the DRA will be reduced by 5 percent for FY 2028 resources, 10 percent for FY 2029, and 15 percent for FY 2030 resources, to provide a margin of error in case the estimates are not realized. Policy Guidelines 384 Page 749 of 1094 GUIDELINE $1,258,831 of February 2026 DRA distributions will be used for 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.In Fiscal Year 2026 and beyond, the City anticipates distribution of a significant amount of net cash proceeds for use in the Capital Improvement Program. These amounts will be budgeted in the Five-Year CIP in the year they are received and will be used to reduce required General Obligation borrowing. The three out-years will be discounted by 5 percent, 10 percent, and 15 percent respectively. FF. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING BUDGET EXPENSE GUIDELINE Capital improvement expenditures that will reduce future maintenance and operating expense will receive priority funding and these types of initiatives will be encouraged in all departments and funding sources as a means of maximizing the use of available resources. This emphasis reflects fiscally responsible long-range planning efforts. GG. USE OF GAMING-RELATED RECEIPTS DISCUSSION On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1% of coin-in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, In addition, the distribution of net profit is now split three ways between the City, charities, and the Schmitt Island Master Plan Implementation from a two-way split between the City and charities. The amended lease has an expiration date of December 31, 2055. The following shows the historical split of DRA gaming taxes and rents between the City’s operating and capital budgets: Policy Guidelines 385 Page 750 of 1094 Split of DRA Gaming Taxes & Rents Between Operating & Capital Budgets 50 % 75 % 76 % 85 % 87 % 90 %97 % 10 0 % 99 % 97 % 96 % 96 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 50%25%24%15%14%10%3%—%1%3%4%4%—%—%—%—%—%—%—%—%—%—% Operating Capital FY 0 4 * FY 0 5 FY 0 9 * * FY 1 0 * * * FY 1 1 * * * * FY 1 3 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 —% 50% 100% Notable Changes: *FY 2004 A new lease took effect with the Dubuque Racing Association for lease of the Dubuque Greyhound Park and Casino. This new lease was negotiated after the FY 2005 budget was approved and raised the lease payment from ½% of coin-in to 1% of coin-in. This new lease and the expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000 gaming positions, effective August 1, 2005, provided additional revenues to the City of Dubuque. **FY 2009 The Diamond Jo expanded to a land-based barge casino facility and increased to 1,100 slots on December 1, 2008. This expansion was projected to decrease the Q gaming market and correspondingly the coin-in by just over 21 percent. Based on the projected market share loss, the City did not receive a distribution of cash flows from the Dubuque Racing Association (DRA) in Fiscal Years 2009 and 2010. ***FY 2010 The operating portion of the split now includes the debt service required on the 2002 general obligation bonds for the America’s River Project that was previously considered as part of the capital portion of the DRA lease. Debt obligations are considered a continuing annual expense and are more accurately reflected as part of the operating portion of the DRA lease. ****FY 2011 DRA distributions restarted in FY 2011 instead of the projected year of FY 2012. *****FY 2016 A reduction in revenue in the Greater Downtown TIF urban renewal area resulted in reduced revenues to make debt payments and it was necessary for the general fund to support $84,104 in FY 2015 and $78,242 in FY 2016 of debt service payments, which were funded by reducing the amount of gaming revenues from taxes and DRA lease that goes to capital recommended in FY 2016. *******FY 2021 A lease amendment took effect with the Dubuque Racing Association for the lease of the Q Casino. This lease amendment added a payment equal to ½% of monthly sports wagering conducted on Q Sportsbook retail or Q advance deposit sports wagering internet site. Policy Guidelines 386 Page 751 of 1094 *******FY 2022 A lease amendment took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1% of coin-in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, the amended lease has an expiration date of December 31, 2036. ********FY 2023 A lease amendment took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment extended the termination date from 2036 to 2055. The amendment allows $1.5 million of cash reserve fund as a down payment of a construction loan in FY23. The change in market share and changes in the lease agreement impacts the City’s lease payment from the DRA. The new lease effective 1/1/22 requires the DRA to pay the City 1.5 percent of coin in from slot machines (previously 1 percent),4.8 percent of gross revenue from table games, and 0.5 percent of sports wagering. In calendar year 2024, the DRA saw a decline of -4.85% in gross gaming revenues, while Diamond Jo experienced a slight increase of +1.61% compared to 2023. The Dubuque market in 2024 was approximately $122.6 million annually, showing a decrease of -0.8% from the $123.6 million market in 2023. This decline was expected due to construction disruptions throughout the year. The DRA's gross gaming revenue was significantly impacted by redevelopment work on the property, which continued throughout the year. Additionally, the main highway leading to our facility was closed for extended repairs. An exit ramp that was initially scheduled for a brief closure ended up being closed for several months, further affecting traffic and access. Despite these challenges, the DRA saw growth in other areas in 2023, including food and beverage sales, as well as new revenue from the opening of the Island Social (Family Entertainment Center) and the new banquet event space. However, total gross revenue for the DRA in 2024 was down -4.2% compared to 2023. Looking ahead, the DRA has projected an increase of +11% in gross gaming revenue and +12% in total gross revenue for calendar year 2025. This growth is primarily attributed to the ongoing redevelopment efforts. Over the next five years, the DRA expects gaming revenue growth rates of +3.4% in FY 2026, +3.3% in FY 2027, a decline of -2.0% in FY 2028, and +2.1% in FY 2029. Total gross revenue projections include a +13% increase in FY 2026, +4% in FY 2027, a decline of -0.4% in FY 2028, and +2.5% in FY 2029. The expected growth in FY 2026 will be supported by the opening of the Key Hotel and rooftop restaurant. In February 2025, the IRGC granted a casino license to Linn County (Cedar Rapids). Our five-year budget forecast indicates that the Linn County casino will become operational in calendar year 2027/2028. Illinois passed legislation in 2019 allowing six additional casinos, sports betting, and increased Video Lottery Terminals (VLTs) throughout the state. The closest casino to our market is in Rockford. The Rockford City Council voted on October 7, 2019, to approve the Hard Rock Casino as the city's choice. On November 10, 2021, Hard Rock opened its temporary casino with 635 slot machines and Electronic Table Games. The permanent Hard Rock Casino in Rockford opened on August 29, 2024, featuring 1,300 slots and live table games. The 250-room hotel is projected to open in late 2025. Additionally, the Ho-Chunk Nation plans to construct a $405 million casino and hotel resort in Beloit, Wisconsin, in two stages. The casino is scheduled for completion by June 2026, with the 18-story, 312- room hotel and 75,000-square-foot conference center slated for completion in 2027. The 50¢ per patron tax previously received from the Diamond Jo was replaced by a $500,000 fixed payment based on their revised parking agreement which expires June 16, 2029. Policy Guidelines 387 Page 752 of 1094 GLOSSARY 388 Page 753 of 1094 This page intentionally left blank. 389 Page 754 of 1094 28E Agreement: Chapter 28, Section E of the Iowa Code which establishes intergovernmental agreements for two or more governmental agencies to cooperate on an issue/activity. Accounting System: Records and procedures which are used to record, classify, and report information on the financial status and operations of an entity. Accrual Basis of Accounting: A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. Activity: A specific type of work or group of tasks performed by one or more organized units of the government. An example would be Street Maintenance. Ad Valorem Taxes: Commonly referred to as property taxes, are levied on both real and personal property according to the property’s valuation and tax rate. Allot: To divide an appropriation into amounts which may be encumbered or expended during an allotment period. Alternatives: This term means other possible activities or uses of funding besides those already decided upon or being considered. It also suggests the comparison between two or more possible approaches toward fulfilling the same purpose, goal or objective. Amortization: The gradual elimination of an asset or liability, such as a bond premium, over a specified period of time. Annualize: Taking changes that occurred mid- year and calculating their cost for a full year, for the purpose of preparing an annual budget. Appropriation: A legal authorization to incur obligations and to make expenditures for specific purposes. Assessed Valuation: A value established for real property for use as a basis for levying property taxes. Assessment Ratio: The ratio at which the tax rate is applied to the tax base. Assets: Resources owned or held by the City which has a monetary value. Attrition: A method of achieving a reduction in personnel by not refilling the positions vacated through resignation, reassignment, transfer, retirement, or means other than layoffs. Audit: Examination by an independent party of the City's financial books, records, accounts, funds, and securities for purposes of determining evidence of the accuracy and correctness of financial statements and ensuring management has effectively and efficiently performed responsibilities. Authorized Positions: Employee positions which are authorized in the adopted budget to be filled during the year. Balanced Budget: Occurs when planned expenditures equal anticipated revenues. Base Budget: Cost of continuing the existing levels of service in the current budget year. Glossary 390 Page 755 of 1094 Bond Funds: Resources derived from issuance of bonds for specific purposes and related Federal project grants used to finance capital expenditures. Bond Rating: A rating (made by an established bond rating company) from a schedule of grades indicating the probability of timely repayment of principal and interest on bonds issued. City of Dubuque has an Aa2 rating from Moody’s Investor Services. Bond: A long-term promise to pay a sum of money (the face amount of the bond) on a specific date(s) (the bond maturity date) at a specified interest rate. Bonding Capacity - Debt Capacity: The State limit for general obligation debt is 5% of assessed valuation. Bond Refinancing: The payoff and re-issuance of bonds, to obtain better interest rates and/or bond conditions. Budget: A plan of financial operation and estimated expenditures for a specific period of time, and the monies to be used to finance the expenditures. The City of Dubuque Operating Budget is a plan for the period form July 1 through June 30. Budget Amendment: Any change in expenditure budgets, which result in a net increase or decrease in the total dollar amount budgeted at the fund level. Budgetary Basis: This refers to the basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual. Budget Calendar: The schedule of key dates or milestones, which the City follows in the preparation and adoption of the budget. Budget Carryover: Funds unused during a financial year which are transferred to the budget for the following year. Budgetary Control: The control or management of a government in accordance with the approved budget for the purpose of keeping expenditures within the limitations of available appropriations and resources. Budget Document (Program and Financial Plan): The official written statement prepared by the City staff reflecting the decisions made by the Council in their budget deliberations. Budget Message: The City Manager’s summary of the salient issues of the budget he is recommending to the City Council for their adoption. The message highlights the City Manager’s views of the major aspects of the budget and provides the city Council with an overview of the major fiscal policies incorporated in the recommended budget, or which may impact future recommended budgets. Capital Assets: Asset of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Expenditures: Purchases of building, improvements other than buildings, machinery, and equipment with a value over $500 and a useful life in excess of one year. Glossary 391 Page 756 of 1094 Capital Improvements: Expenditures related to the acquisition, expansion or rehabilitation of an element of the government’s physical plant; sometimes referred to as infrastructure. Capital Improvement Program (CIP): A long- range plan for providing the capital outlays necessary to insure that adequate services are provided to the residents of the City. The plan includes improvements to, or the acquisition of, structural improvements and major equipment purchases. Capital Improvement Projects: The specific projects that make up the Capital Improvements Program. The projects involve the construction, purchase, or renovation of city facilities or property. They are generally nonrecurring major improvements to the City’s physical plant, which necessitate long-term financing and are permanent in nature. Capital Outlay: Expenditures for fixed assets, such as equipment, remodeling, minor building improvements, and vehicles, that are funded from the operating budget. Since long-term financing is not necessary and expenditures of this type are of such recurring character, these items are not part of the Capital Improvement Program. Capital Project: A major expenditure for a public improvement that is of such magnitude as to be considered a part of the City’s five-year Capital Improvement Program. Such expenditures typically include City infrastructure construction projects, and would normally have an estimated useful life of a minimum of 10-15 years. Capital projects are summarized in the City’s Operating Budget and detailed in the City’s Capital Improvement Program document. Capital Projects Funds: These funds account for the financial resources to be used for the acquisition and/or construction of major facilities (usually over $10,000), other than those financed by proprietary funds. Each year the City appropriates money for the work to be completed that fiscal year; fund balances are designated for the completion of the projects over a period of years. Examples are fire stations, streets, water and sewer lines, etc. These funds use the modified accrual basis of accounting. Revenues are recognized in Capital Projects Funds when they become measurable and available to finance expenditures for the current period (such as when bonds are sold). Expenditures are recognized when the related liability is incurred. Capital Reserve: An account used to segregate a portion of the government’s equity to be used for future capital program expenditures. The amount of capital reserve is roughly equal to the government’s annual equipment depreciation and an amount identified as being needed for future capital acquisition. Cash: For purposes of our financial management system, cash refers to money, revenue, or fund balances available in the City treasury for financing an activity or project. Cash Basis of Accounting: The basis of accounting under which revenues are recorded when received in cash and expenditures are recorded when paid. Clearing Account: An intermediary account used to initially accumulate direct expenditures for subsequent charging to other officially reported accounts. These accounts are used in situations in which allocations are made to the reporting accounts on a percentage basis, and usually involve the ultimate distribution of expenses to a number of different accounts. Collective Bargaining Agreement: A legal contract between the employer and a verified representative of a recognized bargaining unit for specific terms and conditions of employment (e.g., hours, working conditions, salary, fringe benefits, and matters affecting health and safety of employees.) Glossary 392 Page 757 of 1094 Commission of Accreditation for Law Enforcement Agencies (CALEA): Credentialing authority (accreditation), based in the United States, whose primary mission is to accredit public safety agencies, namely law enforcement agencies, training academies, communications centers, and campus public safety agencies. Commodities: Items or supplies needed for routine maintenance and operations. They include cleaning, maintenance and office supplies, repair materials, minor equipment, and tools. Community Development Block Grant (CDBG): A grant that is funded by the federal government through the Housing and Urban Development agency to the State of Iowa and then administered through the Iowa Department of Economic Development. Community Orientated Policing Services (COPS): component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation's state, local, territorial, and tribal law enforcement agencies through information and grant resources. Comprehensive Annual Financial Report: (CAFR) the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Government Accounting Standards Board (GASB). GASB provides standards for the content of a CAFR in its annually updated publication Codification of Governmental Accounting and Financial Reporting Standards. A CAFR is compiled by a state, municipal or other governmental accounting staff and audited by an external American Institute of Certified Public Accountants (AICPA) certified accounting firm utilizing GASB requirements. It is composed of three sections: introductory, financial and statistical. It combines the financial information of fund accounting and enterprise authorities accounting. Constant or Real Dollars: The presentation of dollar amounts adjusted for inflation to reflect the real purchasing power of money as compared to a certain point in time in the past. Consumer Price Index: A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e. economic inflation). Contingency Funds: A reserve of monies set aside within the General Fund for emergency or unexpected expenditures. This is also called the Emergency Reserve. Contractual Services: Services rendered to a government by private firms, individuals, or other governmental agencies. Examples include utilities, rent, maintenance agreement, and professional consulting services. Cost-of-living Adjustment (COLA): an increase in salaries to offset the adverse effect of inflation on compensation. Debt Retirement/Redemption: The expenditure of funds for the retirement of all, or a portion of, the principal amount of a long-term financial obligation of the City. Debt Service Fund: The fund which accounts for the payment of interest and principal on all general obligation debt other than that payable from special assessments and revenue debt issued for a governmental enterprise. Dedicated Tax: A tax levy to support a specific government program or purpose. Glossary 393 Page 758 of 1094 Deferred Compensation: Income deferred until retirement age. Deficit: the excess of an entity’s liabilities over its assets or the excess of expenditures or expenses over revenues during a single accounting period. Department: The basic organizational unit of government which is functionally unique in its delivery of services. Depreciation: Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. Development-related fees: Those fees and charges generated by building, development and growth in a community. Included are building and street permits, development review fees, and zoning, platting and subdivision fees. Direct Revenues: Revenues earned by a specific General Fund division in the course of performing their assigned duties. Disbursement: The expenditure of monies from an account. Distinguished Budget Presentation Awards Program: A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents. Division: A major administrative organizational unit of the City which indicates overall management responsibility of one or more activities. Employee (or Fringe) Benefits: Contributions made by a government to meet commitments or obligations for employee fringe benefits. Included are the government’s share of costs for Social Security and the various pension, medical, and life insurance plans. Encumbrances: Obligations in the form of purchase orders, contracts or salary commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved by an accounting entry. Enterprise Fund: Those funds established to finance and account for acquisition, operation and maintenance of governmental operations which are predominantly self-supporting by user charges. Such operations must be run in a manner similar to private business. Examples are the Water Utility Operation and Solid Waste Collection. Entitlements: Payments to which local governmental units are entitled, pursuant to an allocation formula determined by the agency providing the monies, usually the state or the federal government. Expenditures: Funds spent in accordance with budgeted appropriations on goods and services obtained. Expense: Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges. Glossary 394 Page 759 of 1094 Federal Emergency Management Agency (FEMA): Coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror. Fiscal Policy: A government’s policies with respect to revenues, spending, and debt management as these relate to government services, programs and capital investment. Fiscal policy provides an agreed- upon set of principles for the planning and programming of government budgets and their funding. Fiscal Year (FY): The 12-month period to which the operating budget applies, and the period of time at the end of which the government determines it financial condition. For the City of Dubuque, this is July 1 through June 30. Fixed Assets: Assets of a long-term character, which are intended to be held or used, such as land, buildings, machinery, furniture and other equipment. Full Faith and Credit: A pledge of a government’s taxing power to repay debt obligations. Full-Time Equivalent (F.T.E.): A measure of authorized personnel calculated by equating 2,080 hours of work per year with the F.T.E. of one position. Function: A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible (e.g. public safety). Fund: An accounting term referring to a group of accounts recording all financial resources together with correspondence liabilities, which has a distinct balance and is used to segregate specific activities and functions from those of other groups of accounts. Fund Balance: The balance that remains in a fund on a given date after all expenditures have been made. This balance shows the fund equity. General Fund: The fund used to account for all financial resources and liabilities that are not required to be accounted for in another fund. General Obligation Bonds: Bonds backed by the full faith and credit of the issuing government. Repayment of these bonds is based on the government’s ability to tax its residents for such purposes. General Revenues: Revenues deposited in the General Fund and shared by the General Fund divisions. Generally Accepted Accounting Principles (GAAP): Accounting principles that are commonly used in preparing financial statements and generally accepted by the readers of those statements. Geographic Information System (GIS): System designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. Global Positioning System (GPS): Satellite-based radio navigation system owned by the United States Government and operated by the United States Air Force. It is a global navigation satellite system that provides geolocation and time information to a GPS receiver anywhere on or near the Earth where there is unobstructed line of sight to four or more GPS satellites. Glossary 395 Page 760 of 1094 Goal: A desirable end, condition, accomplishment and/or development, the attainment of which may never be fully realized, towards which organizational effort is expended according to assigned responsibilities, available resources and prepared plans. Goals are attained by means of objectives. Goals are broadly stated and useful in evaluating resource allocation decisions. For example, the Goal for the Park Areas and Maintenance Activity of the Park Division of Parks and Recreation s Department is to develop and maintain safe, clean, functional and attractive park and recreational facilities to meet the passive and active leisure time needs for all residents and visitors. Government Accounting Standards Board (GASB): They are the authoritative source of GAAP for state and local government. Governmental Funds: Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital project funds, and permanent funds. Grant: A contribution by a government or other organization to support a particular function. Grants may be classified as either operational or capital, depending upon the grantee. Improvement Package: One or more objectives of an activity, which represents a standalone alternative or decision. For example, the Base Level Increment of a particular activity may have twelve objectives. Some of these objectives may be interrelated and the twelve objectives may represent only four choices or stand alone improvement packages. You may have one improvement package with one objective, two improvement packages with four objectives each and one improvement package with three objectives. The important thing is that the improvement package includes one or more stand alone objectives and is not dependent upon the approval of any other improvement package. Indirect Cost: A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned to one service. Infrastructure: The physical assets of a government (e.g. streets, water, sewer, public buildings, and parks). Interfund Transfers: A transfer from a fund receiving the revenue, to a fund through which the authorized expenditure is to be made. An example would be a transfer of revenue from the Road Use Tax Fund to the Street Construction Fund. Intergovernmental Revenue: Funds received from federal, state and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. Internal Service Charges: Goods or services provided by one department to others within the same government or to other governments, on a user fee basis, with full costs to be recovered. An example of this would be the City’s Garage Service. International City/County Management Association (ICMA): Advances professional local government through leadership, management, innovation, and ethics. Provides member support; publications; data and information; peer and results-orientated assistance; and training and professional development to over 11,000 city, town, and county managers, their staffs, and other individuals and organizations throughout the world. Iowa Communities Assurance Pool (ICAP): The organization the City holds membership to cover its liability insurance. Glossary 396 Page 761 of 1094 Iowa Department of Natural Resources (IDNR): Agency that manages fish and wildlife programs, ensures the health of Iowa's forests and prairies, and provides recreational opportunities in Iowa's state parks. The DNR carries out state and federal laws that protect air, land and water through technical assistance, permitting and compliance programs. The IDNR also encourages the enjoyment and stewardship of natural resources among Iowans through outreach and education. Iowa Department of Transportation (IDOT): Agency that is responsible for the organization, construction, and maintenance of the primary highway system. Located in Ames, IA, the IDOT is also responsible for licensing drivers and programming and planning for aviation, rail and public transit. Iowa Economic Development Authority (IEDA): Mission is to strengthen economic and community vitality by building partnerships and leveraging resources to make Iowa the choice for people and business. Two main divisions, business development and community development. IEDA administers several state and federal programs to meet its goal of assisting individuals, communities and businesses. Iowa League of Cities (ILC): Through membership services, research, publications, trainings and other collaborations, the Iowa League of Cities provides guidance and serves as the resource for member cities. Iowa Municipal Finance Officers Association (IMFOA): An association of city clerks and municipal finance officers in Iowa. The purpose of IMFOA is to conduct regular instructional and informational meetings, as often as deemed necessary by the Board of Directors, for the purpose of educating municipal officers in the keeping of public records and for any other purpose deemed to be in the best interest of the public. Lapsing Appropriation: An appropriation made for a certain period of time, generally for the budget year. At the end of the specified period, and unexpected or unencumbered balance lapses or ends, unless otherwise provided by law. Levy: The amount of taxes, assessments or service charges imposed by a government. The maximum General Fund property tax levy allowed in Iowa is $8.10 per $1,000 of assessed valuation. Other levies may be imposed in addition to this. Liabilities: Debts or other legal obligations arising out of transactions in the past, which must be liquidated, renewed, or refunded at some future date. This term does not include encumbrances. Line-item Budget: A budget prepared along departmental lines that focuses on what is to be bought. Local Option Sales Tax: A tax approved by a majority of the City’s registered voters, which collects revenue according to a percentage of the value of goods and services delivered within the corporate limits. In Dubuque, the local option sales tax applies to those goods and services to which the State of Iowa sales tax applies. Long-term Debt: Debt with maturity of more than one year after the date of issuance. Major Fund: Governmental fund or enterprise fund reported as a separate column in a governmental entity's basic fund financial statements and subject to a separate opinion in the independent auditor's report. Mill: The property tax rate which is based on the valuation of property. A tax rate of one mill produces one dollar of taxes on each $1,000 of assessed property valuation. Glossary 397 Page 762 of 1094 Modified Accrual Accounting: The accrual basis of accounting modified to the governmental fund type spending measurement focus. Under it, revenues are recognized when they become both “measurable” and “available to finance expenditures of the current period.” Expenditures are recognized when the related fund liability is incurred except for: (1) prepaid insurance and similar items; (2) accumulated unpaid vacation, sick pay, and other employee benefit amounts which need not be recognized in the current period, but for which larger-than- normal accumulations must be disclosed in the notes to the financial statements; and (3) principal and interest on long-term debt which are generally recognized when due. Municipal Fire and Police Retirement System of Iowa (MFPRSI): Provides pension benefits for municipal police officers and fire fighters in Iowa. MFPRSI is a defined benefit public retirement system created by Iowa statute. Net Budget: The legally adopted budget less all interfund transfers and interdepartmental charges. Nominal Dollars: The presentation of dollar amounts not adjusted for inflation. Adjusting for inflation would be done to reflect the real purchasing power of money today. Non-Major Fund: Funds are considered non-major funds if they are less than 10% of Borough assets, liabilities, revenues and expenditures. Object of Expenditure: An expenditure classification, referring to the lowest and most detailed level of classification, such as electricity, office supplies, asphalt, and furniture. Objective: A statement of results to be accomplished during the fiscal year in support of the broader goal. Objectives are major steps towards accomplishing established goals. An Objective should state the result to be achieved or accomplished, the time frame, the cost and the action step. Obligations: Amounts which a government may be legally required to meet out of its resources. They include not only actual liabilities, but also encumbrances not yet paid. Operating Budget: The City’s financial plan that outlines proposed expenditures for the coming fiscal year and estimates the revenues which will be used to finance them. Operating Expenses: Those expenses from a fund which are directly related to accomplishing the fund’s primary functions. Payroll would be one example of an operating expense. Operating Revenues: Funds that the government receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenues. Operating revenues are used to pay for day-to-day services. Other Post-Employment Benefits (OPEB): All types of post-employment benefits not offered as an integral part of a pension plan, as well as all forms of post-employment health care. Output Indicator: A unit of work accomplished, without reference to the resources required to do the work (e.g. number of permits issued, number of refuse collections made, or number of burglary arrests made). Output indicators do not reflect the effectiveness or efficiency of the work performed. Pay-as-you-go Basis: A term used to describe a financial policy by which capital outlays are financed from current revenues rather than through borrowing. Glossary 398 Page 763 of 1094 Pay Plan: Classifications and corresponding salary ranges of positions within the City government. PILOT: Payment in lieu of taxes. These are payments, primarily from enterprise fund operations, that reimburse the general fund for the property tax that would have been paid if the enterprise funds were for- profit companies. Performance Budget: A budget wherein expenditures are based primarily upon measurable performance of activities and work programs. Performance Indicators: Specific quantitative and qualitative measures of work performed as an objective of specific departments or programs. Performance Measures: Numbers that transmit some information about the quality or quantity of services provided by the City government. The primary reasons for attempting to measure performance are to (1) Provide information for making better decisions; (2) Report on progress made toward established objectives; (3) Improve performance, suggest improvements and change priorities; and (4) Serve as an early warning device by indicating problem areas when they first begin to develop. Permanent Fund: Fund for resources that are restricted to the extent that only earnings, and not principal, may be used for the benefit of the state or its citizenry. Permanent funds include endowments where the funds or property donated to the City are required by contract, agreement, or trust instrument to be maintained in tact. Personal Services: A General Fund expenditure category that includes all wages and benefits paid to employees. Post-Employment Benefits: Payments made directly to former employees or their beneficiaries, or to third parties on their behalf as compensation for services rendered while they were still active employees. Prior-Year Encumbrance: Obligations from previous fiscal years in the form of purchase orders, contacts or salary commitments which are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrance when the obligations are paid or otherwise terminated. Program: A grouping of related work tasks or activities into a large organizational unit. An example of a program is the Public Safety Program. Program Budget: A budget which allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments. Program Performance Budget: A method of budgeting whereby the services provided to the residents are broken down in identifiable service programs or performance units. A unit can be a department, a division, or a work group. Each program has an identifiable service or output and objectives to effectively provide the service. The effectiveness and efficiency of providing the service by the program is measured by performance indicators. Program Revenue (Income): Revenues earned by a program, including fees for services, license and permit fees, and fines. Glossary 399 Page 764 of 1094 Property Taxes: An ad valorem tax levied on both real and personal property according to the property's valuation and the tax rate. Proprietary Funds: Funds that focus on the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. There are two types of proprietary funds: enterprise funds and internal service funds. Public Transit Fund: This fund is a subfund of the General Fund, and is used to account for the receipt and disbursement of property taxes generated by the levy authorized under Section 384.12(19) of the Code of Iowa. The purpose of the levy is to aid Jule Transit. Purchasing Card (P-Card): This is the City's procurement card program of credit cards for individual City employees. Purpose: A broad statement of the goals, in terms of meeting public service needs, that a department is organized to meet. Refunding: The issuance of long term debt in exchange for, or to provide funds for, the retirement of long-term debt already outstanding. Refunding is essentially the “refinancing” of long-term debt. Reserves: Amounts used to hold certain portions of a fund or types of assets as unappropriated for expenditures, or as legally set aside for a specific purpose. Resolution: A special or temporary order of a legislative body; and order of a legislative body requiring less legal formality than an ordinance or statute. Resources: Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. Revenue: Funds that the government receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, shared revenues, and interest income. Revenue Bonds: Bonds which are repaid in both principal and interest from the earnings of an enterprise fund operation. Storm Water Utility Revenue Bonds would be one example. Revitalize Iowa’s Sound Economy: (RISE) grant that is funded by the Iowa Department of Transportation for the purpose of providing infrastructure for economic development projects. Risk Management: The identification and control of risk and liabilities incurred by a local government to conserve resources from accidental loss. Road Use Tax Fund: This fund accounts for the receipt of state revenues, allocated to the City by the State under a formula, for expenditure within the City for street maintenance/improvement/supervision. Rollback: The State of Iowa annually adjusts the rollback percentage which is the percentage of the residential assessed valuation which is taxable. Service Lease: A lease under which the lessor maintains and services the asset. Glossary 400 Page 765 of 1094 Service Level: Services or products which comprise actual or expected output of a given program. Focus on results, not measures of workload. Services and Charges: A category of expenditures used for the purchase of services provided by individuals, businesses or agencies that are not in the direct employ of the City. Sinking Funds: These funds are used to accumulate monies in order to have adequate amounts available to make required periodic debt service payments. Sinking funds are used in enterprise funds that have outstanding long- term debt. Source of Revenue: Revenues are classified according to their source or point of origin. Special Assessment: A levy against a property to pay for all or part of the cost of an improvement benefiting that property. Special Revenue Funds: Special revenue funds are used to account to the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes. Subsidy: Financial aid given to a governmental unit by another governmental unit. Supplies and Services: Expendable materials and operating supplies necessary to conduct departmental operations. Target Budget: Desirable expenditure levels provided to departments in developing the coming year’s recommended budget. Based on the prior year’s adopted budget, excluding one- time expenditures, projected revenues, and reserve requirements. Tax Increment Financing Funds: These funds are used to account for receipt of property taxes allocated to various tax increment financing districts and used to pay the principal and interest on tax increment debt, as well as to make major infrastructure expenditures. Tax Levy: The resultant product when the tax rate per $1,000 is multiplied by the tax base. Tax Rate: The amount of tax stated in terms of a unit of the tax base, for example, dollars per $1,000 of assessed valuation. Taxes: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments. Tort Liability: A tort is a wrong against an individual or property that is neither a crime nor a violation of contract. A court could find the City liable or responsible when a tort occurs on City property, as a result of the actions of a City employee, or the function of a City operated activity. The City levies a special tax to purchase tort liability and to cover the cost of tort damages for which the City is found responsible. Transfers: Involves the movement of money between City funds. Glossary 401 Page 766 of 1094 Trust and Agency Funds: Funds used to account for assets held by the government in a trustee capacity, for individuals or other groups associated with the government. Agency monies or assets are held by a government. Agency monies or assets are held by a government acting as an agent acting as an agent for others, i.e. Landfill. Unamortized Premium and Discount: when bonds are sold, the difference in the price above par or face value (premium) or below par (discount) is recognized over the life of the bonds. The amount of the premium or discount not yet recognized is called the unamortized premium or discount. Unencumbered Balance: The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes. Unreserved Fund Balance: The portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriations. User Charges: The payment of a fee for direct receipt of a public service by the party benefiting from the service. Variable Cost: A cost that increases/decreases with increases/decreases in the amount of service provided such as the payment of a salary. Valuation: The official value established for various properties within set State guidelines, for taxation purposes. The assessed valuation of property is that portion of the property’s value upon which taxes are levied. Working Cash: Excess of readily available assets over current liabilities or cash on hand equivalents which may be used to satisfy cash flow needs. Workload Indicator: A unit of work to be done (e.g. number of permit applications received, the number of households receiving refuse collection service, or the number of burglaries to be investigated). Work Years: The amount of personnel resources required for a program expressed in terms of the “full- time equivalent” number of employees. One “work year” is equal to one full- time, year round employee. For most categories, this equals 2,080 hours per year (40 hours per week times 52 weeks). The number of hours a part-time employee is budgeted to work during the year is divided by 2,080 to arrive at the equivalent number of “work years” for the position. Glossary 402 Page 767 of 1094 ACH: Automated Clearing House ADA: Americans With Disabilities Act AED: Automated External Defibrillator AICPA: American Institute of Certified Public Accountants ARRA: American Recovery & Investment Act CAD: Computer Aided Design CAFR: Comprehensive Annual Financial Report CALEA: Commission on Accreditation for Law Enforcement Agencies CD: Compact Disc CDBG: Community Development Block Grant CEBA: Community Economic Betterment Account CF: Cubic Feet CIP: Capital Improvement Program COBRA: Consolidated Omnibus Budget Reconciliation Act COLA: Cost-of-living Adjustment COPS: Community Orientated Policing Services sponsored by the U.S. Department of Justice CPI: Consumer Price Index DCSD: Dubuque Community School District DCVB: Dubuque Convention & Visitors Bureau DMATS: Dubuque Metropolitan Area Transportation Study DVD: Digital Video Disc EMD: Emergency Medical Dispatching EMS: Emergency Medical Services EOC: Emergency Operations Center Acronyms 403 Page 768 of 1094 EPA: Environmental Protection Agency FAA: Federal Aviation Administration FBO: Fixed Base Operator - Airport FD: Fire Department FEMA: Federal Emergency Management Agency FHWA: Federal Highway Agency FOG: Fats, Oil, and Grease FTA: Federal Transit Administration FTE: Full-Time Equivalent FY: Fiscal Year GAAP: Generally Accepted Accounting Principles GASB: Government Accounting Standards Board GFOA: Government Finance Officers Association GIS: Geographic Information System G.O.: General Obligation GPS: Global Positioning System GTSB: Governor's Traffic Safety Bureau HAZMAT: Hazardous Materials HHW: Household Hazardous Waste HMGP: Hazard Mitigation Grant Program HUD: Housing and Urban Development HVAC: Heating, Ventilation, and Air Conditioning IA: Iowa ICAP: Iowa Communities Assurance Pool Acronyms 404 Page 769 of 1094 ICMA: International City/County Management Association IEDA: Iowa Economic Development Authority IDNR: Iowa Department of Natural Resources IDOT: Iowa Department of Transportation ILC: Iowa League of Cities ILS: Integrated Library System IMFOA: Iowa Municipal Finance Officers Association IT: Information Technology kV: Kilovolts KWH: Kilowatt Hour LED: Light Emitting Diode LEED: Leadership in Energy & Environmental Design LMI: Low and Moderate Income LOC: Letters of Compliance LOST: Local Option Sales Tax LT: Long-term LUPP: Land Use Policy Plan MFPRSI: Municipal Fire and Police Retirement System of Iowa MGD: Million Gallons Per Day MHZ: Megahertz MPO: Metropolitan Planning Organization MS4: Municipal Separate Storm Sewer System MSRP: Manufacturer's Suggested Retail Price MW: Megawatt Acronyms 405 Page 770 of 1094 NADC: National Animal Disease Center NICC: Northeast Community College NOI: Notice of Intent NPDES: National Pollutant Discharge Elimination System OEM: Original Equipment Manufacturer OMB: Office of Management and Budget OPEB: Other Post-Employment Benefits OSHA: Occupational Safety & Health Administration OWI: Operating While Intoxicated P&Z: Planning and Zoning PAYG: Pay-as-you-go PC: Personal Computer P-Card: Purchasing Card PILOT: Payment in lieu of taxes PIN: Personal Identification Number PIO: Communications Office formerly known as Public Information Office PM: Performance Measures RFID: Radio Frequency Identification RISE: Revitalize Iowa’s Sound Economy ROW: Right-of-Way RR: Railroad RSS: Resident Satisfaction Survey RUT: Road Use Tax Fund SA: Special Assessment Acronyms 406 Page 771 of 1094 SCADA: Supervisory Control & Data Acquisition SOG: Standard Operating Guidelines SR: Special Revenue Funds SRF: State Revolving Fund SRO: School Resource Officer SSSE: Sanitary Sewer System Evaluation STP: Surface Transportation Program SWPPP: Stormwater Pollution Prevention Plan TIF: Tax Increment Financing Funds TIS: Traffic Impact Studies W&RRC or WRRC: Water & Resource Recovery Center YR: Year ZBA: Zoning Board of Adjustment Acronyms 407 Page 772 of 1094