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Fiscal Year 2026 Dollars & Cents BrochureCopyrighted May 19, 2025 City of Dubuque ACTION ITEMS # 5. City Council ITEM TITLE: Fiscal Year 2026 Dollars & Cents Brochure SUMMARY: City Manager providing a copy of the FY2026 Dollars and Cents brochure, which will be mailed to all City utility customers with their utility bills from May 14 - June 4. SUGGUESTED Receive and File DISPOSITION: ATTACHMENTS: 1. FY2026 Dollars and Cents Page 945 of 950 THE CITY OF DUB E WLLAR ENT Masterpiece on the Mississippi FISCAL YEAR 2026 FY26 City Property Tax Rate July 1, 2025 - June 30, 2026 • $10.06372 per thousand dollars assessed value • Increase of 1.38% from FY2025 FY25 City FY26 City Cost Percent Property Type Property Property Change Change Tax Payment Payment , Residential: Avg. value = $196,508 $855.82 $889.20 +$33.38 +3.9% Commercial: $150,000 value and below $690.02 $716.00 +$25.98 +3.8% Commercial: $150,001 - $300,000 value $2,030.08 $2,074.61 +$44.53 +2.2% Commercial: $301,000 - $450,000 value $3,370.14 $3,433.21 +$63.07 +1.91. Commercial: Avg. value = $540,594 $4,179.41 $4,253.75 +$74.25 +1.8% Industrial: Avg. value = $632,952 $5,004.59 $5,090.27 +$85.67 +1.7% City Property Tax Rate Comparison $25 Waterloo = 116% higher than Dubuque Average = 55% higher than Dubuque $21.79 $20 $15.56 $15.63 $16.61 $16.66 $17.12 $17.56 $17.69 $15 $11.75 $10.06 $10.30 $10.53 $10 $5 $o AJo oa 00A �05 �Je .,-Ao�� \ae -,A boa J��a t\oo Qap J+ � � pt? OJ P Ooy� o e� �\ Ge Go Moody's Maintains Dubuque's Credit Rating Moody's Investors Service maintained the City of Dubuque's strong bond rating of Aa2, the third highest rating possible, in January 2025 when a series of bonds were issued. In July 2023, Moody's upgraded the City's issuer rating and outstanding general obligation unlimited tax bonds from Aa3 to Aa2. The improved rating Where Property Taxes Go FY26 Consolidated Rate of $30.1238* *Not certified until May/June 2025. assists the City in securing the best terms for financial products like loans, which will provide substantial savings for the City and taxpayers. According to Moody's, "the City has strong financial operations and ample revenue -raising flexibility, which has resulted in steadily improved available fund balance and cc .1% her 1% 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." Page 946 of 950 F CITY BUDGET FY26 Total Budget: $276,430,239 The City of Dubuque's Fiscal Year (FY) 2026 budget runs from July 1, 2025, through June 30, 2026. The City budget has two primary components: the operating budget and the capital budget. ► The operating budget includes personnel costs ► The capital budget funds major improvements and annual facility operating costs. It is funded to City facilities and infrastructure. The capital primarily through local property and sales taxes. budget is supported through multiple funding sources, including federal and state grants. FY26 City Budget General Fund $91,336,133 $320,814 Water Fund $12,647,141 $3,755,780 Sanitary Sewer Fund $17,765,445 $22,026,250 Stormwater Fund $6,143,147 $9,927,585 Solid Waste $5,812,550 $220,000 Parking $3,060,958 $86,282 ■ Operating Budget ■ Capital Budget GENERAL FUND The general fund is the operating fund for general City departments and their programs/services, such as public safety, culture and recreation, health and social services, and general government. How General Fund Money Is Spent General Fund Reserve Projections Public Safety 42.8% Culture & Recreation 18.8% General Government 16.2% Public Works 9.7% Community & Economic Development 6.4% Health & Social Services 1.2% Capital Projects 0.8% Debt Service 0.1% Other 4.5% The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses that may occur. The goal is to have at least a 25% reserve. FY26 $32,266,193 37.64% FY27 $32,266,193 37.64% FY28 $32,266,193 37.64% FY29 $32,266,193 37.64% FY30 $32,266,193 37.64% Page 947 of 950 WHAT'S INCLUDED in Your Monthly City Utility Bill The rates listed below reflect average household utility costs. Keep in mind that smaller households generally use less and therefore pay less for utilities. Avg. Household Rate: 4th Lowest $43.74 / month* Highest, Des Moines, is 5.2% higher Water than Dubuque, and average is 5.2% 0 ($3.60 increase from FY2025) lower than Dubuque. Avg. Household Rate: Sanitary $59.70 / month*** l'.., Sewer ($4.92 increase from FY2025, $2.46 for low -consumption households) Basic Rate $18.11 / month* Curbside ($0.86 increase from FY2025) o7 Collection Curbside collection of recycling is no extra charge. Q Avg. Household Rate: �UUU Stormwater $11.03 / month** ($0.53 increase from FY2025) *Average household rate based on 6,000 gallons per month at $0.00669 per gallon 4th Highest Highest, Des Moines, is 6.7% higher than Dubuque, and average is 18.2% lower than Dubuque. 3rd Lowest Highest, Ames, is 59% higher than Dubuque, and average is 19.1% higher than Dubuque. 2nd Highest Highest, Des Moines, is 74.9% higher than Dubuque, and average is 30.8% lower than Dubuque. **Monthly rate for majority of Dubuque households based on usage of one single family unit. Stormwater fees are based on the amount of impervious ground coverage on a property. Fees collected are only used for stormwater management activities such as the construction, maintenance and operation of the public stormwater management system. ***Average household rate based on 6,000 gallons per month at $0.00913 per gallon. The City's wastewater collection and treatment system operates as a self-supporting enterprise fund which means that it is funded with revenue from user fees, fees from extra services, and grants. Discounted City Utilities Program The City offers income -qualified residential O customers a reduction in monthly fees for all four City utilities (water, sanitary sewer, curbside collection, and stormwater) of up to 50% of the base rate. Customers must submit an application for consideration. Applications are renewed on an annual basis. To learn more and apply, visit www.cityofdubuque.org/ utilitybilling or call 563-589-4144• Page 948 of 950 From 2025-2029, the City will invest nearly $131 million in sanitary sewer Infrastructure Improvements. Sewer Rate Increase Comparison Including the 9% rate increase in FY2026, Dubuque's average annual rate increase of 6% over the last six years (FY2021-FY2026) is fourth highest among Iowa's largest cities with wastewater treatment facilities. The average annual rate increase of the other cities is 5.5%, which is 9% lower than Dubuque. Lower consumption households pay less: customers are only charged for the water they use and the wastewater they generate. STATUTORY DEBT Strategic Use of Debt for Community Investments The City of Dubuque's use of debt can be compared to many average homeowners who borrow to buy their home. The City has borrowed money at low interest rates to invest in infrastructure. Unlike the federal government, the City does not borrow money to cover operating expenses. Project Description and Amount Outstanding 1 Stormwater Improvements $57,697,798 2 Sanitary Sewer Improvements $54,661,651 3 Water & Resource Recovery Center $44,755,000 4 Water Improvements $32,754,450 5 TIF Incentives/Improvements $30,325,774 6 Parking Improvements $18,385,109 7 Industrial Park Expansions $9,740,738 8 Public Safety Improvements $9,701,906 9 Park & Recreation Improvements $5,930,290 10 TIF Rebates/Bonds to Businesses $5,561,674 Total $269,514,390 * $780 million has been spent on street improvements from 1997-2024. 45 miles of streets have been resurfaced or reconstructed in the last 5 years. FY2021-2026 Average Annual 10.0% Sewer Rate Increase 8.8% 6.1 % 6.0 % 5.9 5.5% 3.8 2.4 in 1- Sioux City Council Cedar Dubuque Waterloo Avg. w/o Ames Davenport Iowa City Bluffs Rapids Dubuque FY26 Statutory Debt Limit Used 100% This chart shows the percentage of statutory debt 9o% 87% limit in the FY2025 budaet. By FY2034. the Citv will 80% 70% 60% 50% 40% 30% 20% 10% 0% 20% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 Comparison of Statutory Debt Limit Utilized (FY2024) Dubuque ranks as the fifth lowest and is below 80% the average of the other cities. The average is 68% 21% higher than Dubuque and the highest (Des 70% 62% Moines) is 100% higher than Dubuque. 60% 58% 56% 47% 47% 50% 41% 40% 34% 30% 24% 24% 21% 17% 20% 10% 0% 1 r1 1 1 r1 1 Ja r�1 r1 1 1 r1 °c01, CP o�yam cO�wJ, °G �Qe,J 5 5 \° Qa°a G�J P G Page 94ft"W25