Set Public Hearing for Proposed Fiscal Year 2027 Tax Rate and Dollars and Taxpayer StatementsCity of Dubuque
City Council
Copyrighted
March 2, 2026
ITEMS SET FOR PUBLIC HEARING # 5.
ITEM TITLE: Set Public Hearing for Proposed Fiscal Year 2027 Tax Rate
and Dollars and Taxpayer Statements
SUMMARY: City Manager recommending the public hearing be set for
March 23, 2026, at 6:30 p.m. on a property tax increase for
Fiscal Year 2027 that would result in a 3% increase for the
average homeowner.
RESOLUTION Setting A Public Hearing On The Proposed
Fiscal Year 2027 Tax Rate And Dollars And Taxpayer
Statements
SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for
DISPOSITION: March 23, 2026
ATTACHMENTS:
1. City Manager Memo
2. Updated City Staff Memo —Uploaded 3.2.26
3. City Staff Memo
4. FY27 Notice of Public Hearing Proposed Property Tax Levy_2026_02_27
5. FY 2027 Summary of all Improvement Packages
6. Resolution
Page 482 of 939
Dubuque
THE CITY OF
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Set Public Hearing for Proposed Fiscal Year 2027 Tax Rate and Dollars
and Taxpayer Statements
DATE: February 27, 2026
Chief Financial Officer Jennifer Larson is recommending the public hearing be set for
March 23, 2026, at 6:30 p.m. on a property tax increase for Fiscal Year 2027 that would
result in a 3% increase for the average homeowner.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Y
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
Page 483 of 939
Dubuque
THE CITY OF
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Set Public Hearing for Proposed Fiscal Year 2027 Tax Rate and Dollars
and Taxpayer Statements
DATE: February 27, 2026
I am recommending approval of the resolution setting the public hearing date for the
Proposed Fiscal Year 2027 Tax Rate and Dollars and Taxpayer Statements as required
by Section 384.15A of the Code of Iowa and publish the recommended rate in the
taxpayer statement mailed by Dubuque County.
At the March 23, 2026 public hearing, the only options available to City Council
are to approve the amount of the proposed Fiscal Year 2027 tax rate and dollars
as is or decrease it.
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
• Non-TIF taxable growth over 6%, 3% reduction factor
Page 484 of 939
The City of Dubuque Non-TIF taxable growth for FY2027 is 5.89%, the General Fund
levy is constrained by a growth reduction factor of 2%. The General Fund levy for
FY2027 is $7.78547 instead of the maximum levy of $8.10.
Although the City is restricted to $7.63281 in the General Fund levy, the City has the
flexibility to levy up to $16.7 million or a levy rate of $5.32325 in the Special Revenue
Levies for employee benefits. In Fiscal Year 2026, the Special Revenue levy was
$1.02401 and totaled $3.0 million. Any reduction in the General Fund levy can be in 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. This
date was moved up from March 15 by the State of Iowa during Fiscal Year 2024.
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.
Taxpayer Statements must include:
•Total Fiscal Year 2026 Tax Rate and Dollars
•Combined effective property tax rate for the city calculated using the sum of
Fiscal Year 2026's actual property tax certified for levy of all of city's levies
•Proposed Fiscal Year 2027 Tax Rate and Dollars
•If the Proposed Fiscal Year 2027 Property Tax Dollars exceed the Fiscal Year
2026 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 $110,000 in the
proposed year 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 $300,000 in the current fiscal year and $330,000 in the
proposed year 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.
2 Page 485 of 939
•Information on how to access the city's internet site, the city's statements, and
other budget documents for prior fiscal years.
4. Public hearing on proposed property tax amounts for the budget year and new
taxpayer statements.
•In addition to a 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.
5. 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 before April 15th.
The proposed Fiscal Year 2027 tax rate and dollars is developed and adopted by City
Council during the budgeting process to provide targets or parameters within which the
budget recommendation will be formulated within the context of the City Council Goals
and Priorities established in August 2025. The recommended 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, 2026 must be adopted by April 30, 2026 for
cities not issuing new debt using the debt service levy or before April 15, 2026 for cities
issuing new debt using the debt service levy. The City of Dubuque does not plan to
issue new debt that uses the debt service levy in Fiscal Year 2027.
For FY2027 there are $2,264,092 in general fund improvement package requests. We
are still analyzing those requests and the funding available.
In order to provide context for the basis of the recommended maximum property tax
dollars recommended in FY2027, the FY2027 Budget and Fiscal Policy Guidelines and
the summary of all decision packages requested are attached.
In 2026, the City levied for $29,872,253 in property tax revenue to support the
general fund and in FY 2027 the budget guidelines would levy for $31,941,065 in
property tax revenue to support the general fund. The FY2027 budget guidelines
3 Page 486 of 939
call for a 1.00% increase in the property tax rate, which increases the property tax
rate from $10.0637 in FY26 to $10.1648 in FY 27, which would be a 3.00% or $26.68
tax increase for the average Dubuque homeowner, increase in property tax for
commercial (18.10%, $770.07) and a increase for industrial (17.88%, $910.29).
Property Tax Rate
1,00%
Property Tax Asking
6.93%
$2.068.812
Average Residential Payment
3.00°
Average Commercial Pavment
18.10%
$770.07
Avera e Industrial Property
°
Since 1989, the average homeowner has averaged an annual increase in costs in the
City portion of their property taxes of +1.52%, or about +$9.92 a year. If the State had
been fully funding the Homestead Tax Credit, the increase would have averaged about
+$7.32 a year.
The City Council is only considering the FY2027 property tax rate. The FY2028 - 2031
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 FY2028.
The City property tax rate projected in these budget guidelines and impact on the
average residential property owner ($213,211 assessed value) is as follows:
Fiscal Year
City TaxRate----
% Change in Tax Rate
FY 2027
$10.1648
3.00%
FY 2028
$10.8863
7.10%
FY 2029
$11.0691
1.68%
FY 2030
$11.3003
2.09%
FY 2031
$11.5630
2.32%
Fiscal
FY
2026
"City"
$29,872,253
Property % Changein
% Impact on Avg.
$ Impact on Avg.
FY
2027
$31,941,065
+6.93%
+3.00%
+ 33.38
FY
2028
$34,867,977
+8.93%
+7.10%
+ 65.00
FY
2029
$36,159,995
+3.70%
+1.68%
+ 16.47
FY
2030
$37,652,372
1
+4.12%
+2.09%
+ 20.84
FY
2031
$39,290,241
1
+4.35%
+2.32%
+ 23.59
4
Page 487 of 939
The recommended guideline is a 3.00% or $26.68 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 $315,717.
The State's residential rollback factor will decrease from 47.4316% in 2026 to 44.5345%
or a 6.1080% decrease in FY 2027. The decrease in the residential rollback factor
decreases the value that each residence is taxed on. This increased taxable value for
the average homeowner ($91,067 taxable value in FY 2026 and $94,952 taxable value
in 2027) results in more taxes to be paid per $1,000 of assessed value.
For the Dubuque proposed Fiscal Year 2027, Dubuque has the LOWEST property tax
rate as compared to the Fiscal Year 2026 eleven largest cities in the state rate. The
highest rate (Waterloo (FY26)) is 114.38% higher than Dubuque's rate, and the average
is 53.12% higher than Dubuque. Dubuque's recommended FY 2027 property tax rate is
$10.16 (increase of 1.00% from FY 2026). At this point, we do not know how other cities
will change their property tax rate for Fiscal year 2027.
Fiscal Year 2027 City Property Tax Rate Comparison for Eleven Largest Iowa
Cities
11
Waterloo FY26
$21.79
10
Council Bluffs FY26
$17.69
9
Des Moines (FY26)*
$17.56
8
Davenport (FY26)
$16.61
7
Sioux City FY26
$17.12
6
Cedar Rapids FY26
$16.66
5
Iowa City FY26
$15.63
4
West Des Moines (FY26)*
$11.75
3
Ankeny (FY26)*
$10.53
2
Ames FY26
$10.30
1
Dubuque (FY27)
$10.16
AVERAGE w/o Dubuque
$15.56
'Includes Des Moines Area Transit Levy
5 Page 488 of 939
Significant issues impacting the FY 2027 budget include the following:
1. Greater Downtown Tax Increment Financing
a. In Fiscal Year 2027, $5.3 million in internal loans will be repaid by the
Greater Downtown Tax Increment Financing Fund to the General Fund.
$1 million of the repayment is recommended to be used for general
property tax relief in Fiscal Year 2027. A portion of the remaining $4.3
million is recommended to fund non -recurring improvement packages and
some recurring improvement packages in the general fund. The balance
will be reserved for the Fiscal Year 2028 budget process as the City needs
to be prepared for property tax reform being considered in the State
legislative session.
b. Beginning in Fiscal Year 2028, the Greater Downtown Tax Increment
Financing District will no longer collect 100% of revenues. Instead, the
Greater Downtown TIF District will begin collecting 75% of revenues. The
remaining 25% will be returned to the general funds of all taxing bodies
(Dubuque Community School District, City of Dubuque, Dubuque County,
Northeast Iowa Community College, and Independent). Based on Fiscal
Year 2027 valuations and the Fiscal Year 2026 consolidated tax rate,
collecting only 75% in the Greater Downtown TIF District will annually
return approximately $1.3 million to Dubuque Community School District,
$1.2 million annually to the City of Dubuque, $661 thousand annually to
Dubuque County, $81 thousand annually to Northeast Iowa Community
College, and $81 thousand annually to Independent taxing bodies.
This also means that beginning in Fiscal Year 2028, the Greater
Downtown TIF District will have $3,250,000 less each year for programs
and projects.
2. 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
6 Page 489 of 939
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 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 a eight year period from FY 2023 to FY 2030. The FY 2027 State
backfill for property tax loss is estimated to be $484,830 for all funds
(General Fund, Tort Liability Fund, Trust and Agency Fund, Debt
Service Fund, and Tax Increment Financing Funds).
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.
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 2027 is estimated to be $387,318.
7
Page 490 of 939
3. Gaming Revenue.
a. Gaming revenues generated from lease payments from the Dubuque
Racing Association (DRA) are estimated to decrease $134,176 from
$7,213,362 in FY 2026 to $7,079,186 in FY 2027 based on revised
projections from the DRA. This follows a $192,217 decrease from budget
in FY 2026 and a $2,283,319 increase from budget in FY 2025.
b. February 2027 DRA distributions ($1,286,001) will be used used for
general fund property tax relief. This is a change from past use of DRA
distributions because all funds will be used for Fiscal Year 2027
operations. All of DRA distributions were used in operations in Fiscal
Years 2024 through 2026.
4. Interest Revenue
a. Interest revenue decreases from $2,300,097 in FY 2026 to $1,620,974 in
FY 2027. The FY 2027 budget is based on projected general fund cash
balance, and projected declining interest rates.
5. Local Option Sales Tax Revenue
a. Sales tax receipts are projected to decrease 2.53% under FY 2026 actual
of $12,465,961 based on FY 2026 revised revenue estimate which
includes actuals through February 2026.
6. Hotel/Motel Tax Revenue
a. Hotel/motel tax receipts are projected to increase 5.00% ($167,843) over
FY 2026 re -estimated receipts of $3,356,856.
7. Riverfront Property Lease Revenue
a. Riverfront property lease revenue is projected to increase by $101,268 in
FY 2027 to $4,374,313 due to the estimated consumer price index
increase.
8 Page 491 of 939
8. Franchise Fee Revenue
a. Natural Gas franchise fees are based on FY 2025 actual of $1,743,494.
Also, Electric franchise fees are based on FY 2026 budget of $5,075,053
plus rate increases of 5.6%.
9. Ambulance Revenue
a. Ambulance Ground Emergency Medical Transport Payments increased
from $2,413,018 in FY 2026 to $2,714,947 in FY 2027. GEMT is a
federally -funded supplement to state Medicaid payments to EMS
providers transporting Medicaid patients which began in FY 2021. FY
2027 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 $904,973 resulting in net revenue of $1,809,974.
b. Ambulance Fees increased from $1,756,870 in FY 2026 ($357 per call) to
$2,778,351 in FY 2027 ($353 per call) based on calculated projections
using historical averages. The FY 2025 actual was $2,026,670. In FY
2027, it is currently estimated that there will be 5,067 calls with $353 per
call average. The FY 2027 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 2026 and the
prior 11 quarters.
As the City Council approved in 2025, these funds are being used to add
five firefighter positions in Fiscal Year 2026 and should the City receive a
SAFER grant, nine more firefighter positions in Fiscal Year 2027.
10. The Municipal Fire and Police Retirement System of Iowa Board of Trustees City
contribution for Police and Fire retirement decreased from 22.56% percent in FY
2026 to 21.86% percent in FY 2027 (general fund savings of $80,598 for Police
and $(71,242) for Fire or a total of $151,840).
9 Page 492 of 939
11. The already approved collective bargaining agreements for Dubuque
Professional Fire Fighters Association includes a 4% increase, International
Union of Operating Engineers includes a 3.25% wage increase, the Dubuque
Police Protective Association includes a 5% wage increase, and the Teamsters
Local Union No. 120 Bus Operators and Teamsters Local Union No. 120 include
a 3% increase. Non -represented employees include a 3.00% wage increase.
Fiscal Year 2027 includes the cost of the multi -year 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 continued classification and
compensation study implementation is $2,643,491 to the General Fund.
12. Health Insurance
The City portion of health insurance expense is projected to increase from
$1,119 per month per contract to $1,175 per month per contract (based on 662
contracts) in FY 2027 (increase of $421,055 to the general fund). 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 2026
actual experience, Fiscal Year 2027 is projected to have a 5.35% increase in
health insurance costs. Estimates for FY 2028 were increased 5.36%; FY 2029
10 Page 493 of 939
were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031 were
increased 5.38%.
13. The increase in property tax support for Transit from FY 2026 to FY 2027 is
$315,838, which reflects a decrease in Federal Transportation Administration
Operating revenue ($154,667); an decrease in Federal Transportation
Administration Capital ($344,329), an increase in employee expense ($120,888);
and a decrease in supplies and services ($213,908).
14. Communications Department Funding
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 was eliminated.
All remaining Cable Utility Franchise Tax supported positions are now supported
by 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.
15. Moody's Investors Service Change in Methodology
a. 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
11
Page 494 of 939
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%.
b. 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 Al. 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.
c. In November of 2022, Moody's Investors Service ("Moody's") 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
12
Page 495 of 939
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.
d. In May 2021, Moody's Investor Service upgraded the City's Water
Enterprise's outstanding revenue bonds from Al 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.
16. Fiscal Year 2027 Debt
a. FY 2027 Debt Limit: The FY 2025 assessable value of the community for
calculating the statutory debt limit is $7,167,485,151, which at 5%,
indicates a total General Obligation debt capacity of $358,374,258.
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, 2027 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 2027 and one issuance for the franchise fee litigation settlement in the
amount of $2,800,000 with debt service of $195,825 in FY 2027. Included
in the debt is $4,661,120 of property tax rebates to businesses creating
and retaining jobs and investing in their businesses.
13
Page 496 of 939
Statutory Debt Limit Used
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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, 2027 will have a balance of $167,789,201. The
total City indebtedness as of June 30, 2027, is projected to be $289,568,909.
The total City indebtedness as of June 30, 2026, was $281,085,184. In FY 2027,
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 2027 compared to the other cities in Iowa for
Fiscal Year 2025 with a population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa
Cities
/°
14
Page 497 of 939
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
1
Percentage of Legal
Debt Limit Utilized
11
Des Moines (FY25)
964.798.967
$ 573.230.000
59.41 %
10
Cedar Rapids FY 25
767.559.335
S 428,550,000
55.83 °
9
1W. Des Moines(FY25)
551,635,692
307 090 000
55.67 °
8
Waterloo (FY25)
$ 267.626.798
$ 137.905.065
51.53 %
6
Daven ort FY25
493 660 291
S 176,195,000
35.69 °
5
Dubuaue (FY261
$ 323.629.585
$ 108.410.164
33.50 %
4
Ankeny FY25
529,988.951
97,645,000
18.42 °
Am(FY25)
28 45 527
S 56,710,000
17.27 °
2
Iowa Citv (FY25)
$ 435.367.793
$ 65.945.000
15.15 %
1
Council Bluffs (FY25)
1 $ 427,559,692
S 61,320,000
14.34 °
Av r w D
205,152,5071
°
Percent of Legal Debt Limit Utilized
75%
59.41
50% _
33.50% 35.690/. 36.33%
39.96%
25% ° 18 42°/
14.34% 15.15%
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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 (36.33%) is 8.45% higher than Dubuque (33.50%).
15
Page 498 of 939
$324
$297
$270
c
0
$243
$216
$189
Total Debt (In Millions)
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY16 Adopted E FY26 Adopted
The City will issue $192,101,423 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).
By the end of the Fiscal Year 2026 5-Year Capital Improvement Program (CIP) budget
the total amount of debt for the City of Dubuque would be $310.6 million (32.9% of the
statutory debt limit), less than the current 33.50%, and the projection is to be at 200.8
million (20% of statutory debt limit) within 10 years.
16
Page 499 of 939
17. General Fund Reserve
The City maintains a general fund reserve, or working balance, to allow for
unforeseen expenses that may occur. Moody's Investor Service recommends a
20% General Fund Operating Reserve for "AA" rated cities. May 2021, Moody's
Investor Services upgraded the City's Water Enterprise's outstanding revenue
bonds from Al 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.
Fund
Fiscal
Year
Reserve
(As •- of
"
changeReason for from previous Fiscal Year
Moody's
General Fund
Calculation
L_
FY 2021
40.72%
Increase due to American Rescue Plan Act funds received
0�1'1 9 million) frman nncifinnc and rnnital nrniartc thrni inh
Increase due to American Rescue Plan Act funds received
($13.2 million), capital projects not expended before the end
FY 2022
49.16%
45.09%
of the FY and vnrant nnGitinnG
Increase due to American Rescue Plan Act funds not spent
($26.4 million), capital projects not expended before the end
FY 2023
55.82%
62.99 %
Decrease due to spend down of American Rescue Plan Act
FY 2024
51.19%
62.41 %
funds.
Decrease due to spend down of American Rescue Plan Act
FY 2025
43.07%
58.14 %
funds.
17
Page 500 of 939
50
40
0
c
a�
2 30
a�
20
10
Fund Reserve as a Percent of General Fund Revenue
55.82%
5
49.16% 1.19%
40.72%
31.24%
2906%
i
FY FY FY FY
19 20 21 22
43.07%
FY FY FY FY
23 24 25 26
Fiscal Year
37.58%
FY FY FY FY
27 28 29 30
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 percent.
After all planned expenditures in FY 2026, the City of Dubuque will have a
general fund reserve of 37.58% of general fund revenues as a percent of general
fund revenues computed by the accrual basis or 58.14% 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 $26,946,677 on June 30, 2026 as compared to
the general fund reserve balance on an accrual basis of $39,652,572. The
general fund reserve balance on an accrual basis exceeds 27% in FY 2026,
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.
18
Page 501 of 939
General Fund Reserve Projections:
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
$
$45 452 572
43.07 %
58.14 %
FY2026
$
$39,652,572
37.58 %
54.73 %
FY2027
$
$39,652,572
37.58 %
51.32 %
FY2028
$
$39,652,572
37.58 %
47.91 %
FY2029
$
$39,652,572
37.58 %
44.50 %
FY2030
$
$39,652,572
37.58 %
43.03 %
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://dollarsandcents.citVofdubugue.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
URL: http://expenses.citVofdubugue.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
19
Page 502 of 939
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.
There will be seven City Council special meetings prior to the adoption of the FY 2027
budget before the state mandated deadline of April 30, 2026.
The recommended maximum property tax dollars in FY 2027 is $31,941,065 (tax
rate of $10.1648) or a 6.93% increase over FY2026 property tax dollars.
At this public hearing, the only options available to City Council are to approve
the amount of proposed property tax rate and dollars as is or decrease it.
The requested action step is for City Council to adopt the attached resolution setting the
public hearing date for the Proposed Fiscal Year 2027 Tax Rate and Dollars and
Taxpayer Statements as required by Section 384.15A of the Code of Iowa and publish
the recommended rate in the taxpayer statement mailed by Dubuque County.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Laura Bendorf, Budget Manager
20
Page 503 of 939
Dubuque
THE CITY OF
All -America City
DUB El
13
Masterpiece on the Mississippi zoa�•*o
rP PP Zol720Zol9
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Set Public Hearing for Proposed Fiscal Year 2027 Tax Rate and Dollars
and Taxpayer Statements
DATE: February 27, 2026
I am recommending approval of the resolution setting the public hearing date for the
Proposed Fiscal Year 2027 Tax Rate and Dollars and Taxpayer Statements as required
by Section 384.15A of the Code of Iowa and publish the recommended rate in the
taxpayer statement mailed by Dubuque County.
At the March 23, 2026 public hearing, the only options available to City Council
are to approve the amount of the proposed Fiscal Year 2027 tax rate and dollars
as is or decrease it.
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
• Non-TIF taxable growth over 6%, 3% reduction factor
Page 504 of 939
The City of Dubuque Non-TIF taxable growth for FY2027 is 5.89%, the General Fund
levy is constrained by a growth reduction factor of 2%. The General Fund levy for
FY2027 is $7.78547 instead of the maximum levy of $8.10.
Although the City is restricted to $7.63281 in the General Fund levy, the City has the
flexibility to levy up to $16.7 million or a levy rate of $5.32325 in the Special Revenue
Levies for employee benefits. In Fiscal Year 2026, the Special Revenue levy was
$1.02401 and totaled $3.0 million. Any reduction in the General Fund levy can be in 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. This
date was moved up from March 15 by the State of Iowa during Fiscal Year 2024.
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.
Taxpayer Statements must include:
•Total Fiscal Year 2026 Tax Rate and Dollars
•Combined effective property tax rate for the city calculated using the sum of
Fiscal Year 2026's actual property tax certified for levy of all of city's levies
•Proposed Fiscal Year 2027 Tax Rate and Dollars
•If the Proposed Fiscal Year 2027 Property Tax Dollars exceed the Fiscal Year
2026 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 $110,000 in the
proposed year 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 $300,000 in the current fiscal year and $330,000 in the
proposed year 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.
2 Page 505 of 939
•Information on how to access the city's internet site, the city's statements, and
other budget documents for prior fiscal years.
4. Public hearing on proposed property tax amounts for the budget year and new
taxpayer statements.
•In addition to a 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.
5. 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 before April 15th.
The proposed Fiscal Year 2027 tax rate and dollars is developed and adopted by City
Council during the budgeting process to provide targets or parameters within which the
budget recommendation will be formulated within the context of the City Council Goals
and Priorities established in August 2025. The recommended 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, 2026 must be adopted by April 30, 2026 for
cities not issuing new debt using the debt service levy or before April 15, 2026 for cities
issuing new debt using the debt service levy. The City of Dubuque does not plan to
issue new debt that uses the debt service levy in Fiscal Year 2027.
For FY2027 there are $2,264,092 in general fund improvement package requests. We
are still analyzing those requests and the funding available.
In order to provide context for the basis of the recommended maximum property tax
dollars recommended in FY2027, the FY2027 Budget and Fiscal Policy Guidelines and
the summary of all decision packages requested are attached.
In 2026, the City levied for $29,872,253 in property tax revenue to support the
general fund and in FY 2027 the budget guidelines would levy for $31,941,065 in
property tax revenue to support the general fund. The FY2027 budget guidelines
3 Page 506 of 939
call for a 1.00% increase in the property tax rate, which increases the property tax
rate from $10.0637 in FY26 to $10.1648 in FY 27, which would be a 3.00% or $26.68
tax increase for the average Dubuque homeowner, increase in property tax for
commercial (18.10%, $770.07) and a increase for industrial (17.88%, $910.29).
Property Tax Rate
1,00%
Property Tax Asking
6.93%
$2.068.812
Average Residential Payment
3.00°
Average Commercial Pavment
18.10%
$770.07
Avera e Industrial Property
°
Since 1989, the average homeowner has averaged an annual increase in costs in the
City portion of their property taxes of +1.52%, or about +$9.92 a year. If the State had
been fully funding the Homestead Tax Credit, the increase would have averaged about
+$7.32 a year.
The City Council is only considering the FY2027 property tax rate. The FY2028 - 2031
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 FY2028.
The City property tax rate projected in these budget guidelines and impact on the
average residential property owner ($213,211 assessed value) is as follows:
Fiscal Year
City TaxRate----
% Change in Tax Rate
FY 2027
$10.1648
3.00%
FY 2028
$10.8863
7.10%
FY 2029
$11.0691
1.68%
FY 2030
$11.3003
2.09%
FY 2031
$11.5630
2.32%
Fiscal
FY
2026
"City"
$29,872,253
Property % Changein
% Impact on Avg.
$ Impact on Avg.
FY
2027
$31,941,065
+6.93%
+3.00%
+ 33.38
FY
2028
$34,867,977
+8.93%
+7.10%
+ 65.00
FY
2029
$36,159,995
+3.70%
+1.68%
+ 16.47
FY
2030
$37,652,372
1
+4.12%
+2.09%
+ 20.84
FY
2031
$39,290,241
1
+4.35%
+2.32%
+ 23.59
4
Page 507 of 939
The recommended guideline is a 3.00% or $26.68 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 $315,717.
The State's residential rollback factor will decrease from 47.4316% in 2026 to 44.5345%
or a 6.1080% decrease in FY 2027. The decrease in the residential rollback factor
decreases the value that each residence is taxed on. This increased taxable value for
the average homeowner ($91,067 taxable value in FY 2026 and $94,952 taxable value
in 2027) results in more taxes to be paid per $1,000 of assessed value.
For the Dubuque proposed Fiscal Year 2027, Dubuque has the LOWEST property tax
rate as compared to the Fiscal Year 2026 eleven largest cities in the state rate. The
highest rate (Waterloo (FY26)) is 114.38% higher than Dubuque's rate, and the average
is 53.12% higher than Dubuque. Dubuque's recommended FY 2027 property tax rate is
$10.16 (increase of 1.00% from FY 2026). At this point, we do not know how other cities
will change their property tax rate for Fiscal year 2027.
Fiscal Year 2027 City Property Tax Rate Comparison for Eleven Largest Iowa
Cities
11
Waterloo FY26
$21.79
10
Council Bluffs FY26
$17.69
9
Des Moines (FY26)*
$17.56
8
Davenport (FY26)
$16.61
7
Sioux City FY26
$17.12
6
Cedar Rapids FY26
$16.66
5
Iowa City FY26
$15.63
4
West Des Moines (FY26)*
$11.75
3
Ankeny (FY26)*
$10.53
2
Ames FY26
$10.30
1
Dubuque (FY27)
$10.16
AVERAGE w/o Dubuque
$15.56
'Includes Des Moines Area Transit Levy
5 Page 508 of 939
Significant issues impacting the FY 2027 budget include the following:
1. Greater Downtown Tax Increment Financing
a. In Fiscal Year 2027, $5.3 million in internal loans will be repaid by the
Greater Downtown Tax Increment Financing Fund to the General Fund.
$1 million of the repayment is recommended to be used for general
property tax relief in Fiscal Year 2027. A portion of the remaining $4.3
million is recommended to fund non -recurring improvement packages and
some recurring improvement packages in the general fund. The balance
will be reserved for the Fiscal Year 2028 budget process as the City needs
to be prepared for property tax reform being considered in the State
legislative session.
b. Beginning in Fiscal Year 2028, the Greater Downtown Tax Increment
Financing District will no longer collect 100% of revenues. Instead, the
Greater Downtown TIF District will begin collecting 75% of revenues. The
remaining 25% will be returned to the general funds of all taxing bodies
(Dubuque Community School District, City of Dubuque, Dubuque County,
Northeast Iowa Community College, and Independent). Based on Fiscal
Year 2027 valuations and the Fiscal Year 2026 consolidated tax rate,
collecting only 75% in the Greater Downtown TIF District will annually
return approximately $1.3 million to Dubuque Community School District,
$1.2 million annually to the City of Dubuque, $661 thousand annually to
Dubuque County, $81 thousand annually to Northeast Iowa Community
College, and $81 thousand annually to Independent taxing bodies.
This also means that beginning in Fiscal Year 2028, the Greater
Downtown TIF District will have $3,250,000 less each year for programs
and projects.
2. 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
6 Page 509 of 939
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 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 a eight year period from FY 2023 to FY 2030. The FY 2027 State
backfill for property tax loss is estimated to be $484,830 for all funds
(General Fund, Tort Liability Fund, Trust and Agency Fund, Debt
Service Fund, and Tax Increment Financing Funds).
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.
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 2027 is estimated to be $387,318.
7
Page 510 of 939
3. Gaming Revenue.
a. Gaming revenues generated from lease payments from the Dubuque
Racing Association (DRA) are estimated to decrease $134,176 from
$7,213,362 in FY 2026 to $7,079,186 in FY 2027 based on revised
projections from the DRA. This follows a $192,217 decrease from budget
in FY 2026 and a $2,283,319 increase from budget in FY 2025.
b. February 2027 DRA distributions ($1,286,001) will be used used for
general fund property tax relief. This is a change from past use of DRA
distributions because all funds will be used for Fiscal Year 2027
operations. All of DRA distributions were used in operations in Fiscal
Years 2024 through 2026.
4. Interest Revenue
a. Interest revenue decreases from $2,300,097 in FY 2026 to $1,620,974 in
FY 2027. The FY 2027 budget is based on projected general fund cash
balance, and projected declining interest rates.
5. Local Option Sales Tax Revenue
a. Sales tax receipts are projected to decrease 2.53% under FY 2026 actual
of $12,465,961 based on FY 2026 revised revenue estimate which
includes actuals through February 2026.
6. Hotel/Motel Tax Revenue
a. Hotel/motel tax receipts are projected to increase 5.00% ($167,843) over
FY 2026 re -estimated receipts of $3,356,856.
7. Riverfront Property Lease Revenue
a. Riverfront property lease revenue is projected to increase by $101,268 in
FY 2027 to $4,374,313 due to the estimated consumer price index
increase.
8 Page 511 of 939
8. Franchise Fee Revenue
a. Natural Gas franchise fees are based on FY 2025 actual of $1,743,494.
Also, Electric franchise fees are based on FY 2026 budget of $5,075,053
plus rate increases of 5.6%.
9. Ambulance Revenue
a. Ambulance Ground Emergency Medical Transport Payments increased
from $2,413,018 in FY 2026 to $2,714,947 in FY 2027. GEMT is a
federally -funded supplement to state Medicaid payments to EMS
providers transporting Medicaid patients which began in FY 2021. FY
2027 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 $904,973 resulting in net revenue of $1,809,974.
b. Ambulance Fees increased from $1,756,870 in FY 2026 ($357 per call) to
$2,778,351 in FY 2027 ($353 per call) based on calculated projections
using historical averages. The FY 2025 actual was $2,026,670. In FY
2027, it is currently estimated that there will be 5,067 calls with $353 per
call average. The FY 2027 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 2026 and the
prior 11 quarters.
As the City Council approved in 2025, these funds are being used to add
five firefighter positions in Fiscal Year 2026 and should the City receive a
SAFER grant, nine more firefighter positions in Fiscal Year 2027.
10. The Municipal Fire and Police Retirement System of Iowa Board of Trustees City
contribution for Police and Fire retirement decreased from 22.56% percent in FY
2026 to 21.86% percent in FY 2027 (general fund savings of $80,598 for Police
and $(71,242) for Fire or a total of $151,840).
9 Page 512 of 939
11. The already approved collective bargaining agreements for Dubuque
Professional Fire Fighters Association includes a 4% increase, International
Union of Operating Engineers includes a 3.25% wage increase, the Dubuque
Police Protective Association includes a 5% wage increase, and the Teamsters
Local Union No. 120 Bus Operators and Teamsters Local Union No. 120 include
a 3% increase. Non -represented employees include a 3.00% wage increase.
Fiscal Year 2027 includes the cost of the multi -year 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 continued classification and
compensation study implementation is $2,643,491 to the General Fund.
12. Health Insurance
The City portion of health insurance expense is projected to increase from
$1,119 per month per contract to $1,175 per month per contract (based on 662
contracts) in FY 2027 (increase of $421,055 to the general fund). 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 2026
actual experience, Fiscal Year 2027 is projected to have a 5.35% increase in
health insurance costs. Estimates for FY 2028 were increased 5.36%; FY 2029
10 Page 513 of 939
were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031 were
increased 5.38%.
13. The increase in property tax support for Transit from FY 2026 to FY 2027 is
$315,838, which reflects a decrease in Federal Transportation Administration
Operating revenue ($154,667); an decrease in Federal Transportation
Administration Capital ($344,329), an increase in employee expense ($120,888);
and a decrease in supplies and services ($213,908).
14. Communications Department Funding
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 was eliminated.
All remaining Cable Utility Franchise Tax supported positions are now supported
by 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.
15. Moody's Investors Service Change in Methodology
a. 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
11
Page 514 of 939
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%.
b. 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 Al. 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.
c. In November of 2022, Moody's Investors Service ("Moody's") 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
12
Page 515 of 939
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.
d. In May 2021, Moody's Investor Service upgraded the City's Water
Enterprise's outstanding revenue bonds from Al 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.
16. Fiscal Year 2027 Debt
a. FY 2027 Debt Limit: The FY 2025 assessable value of the community for
calculating the statutory debt limit is $7,167,485,151, which at 5%,
indicates a total General Obligation debt capacity of $358,374,258.
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, 2027 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 2027 and one issuance for the franchise fee litigation settlement in the
amount of $2,800,000 with debt service of $195,825 in FY 2027. Included
in the debt is $4,661,120 of property tax rebates to businesses creating
and retaining jobs and investing in their businesses.
13
Page 516 of 939
Statutory Debt Limit Used
(as of June 30th)
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82% 79% 79%
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FY16 Adopted FY27 Recommended
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, 2027 will have a balance of $167,789,201. The
total City indebtedness as of June 30, 2027, is projected to be $289,568,909.
The total City indebtedness as of June 30, 2026, was $281,085,184. In FY 2027,
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 2027 compared to the other cities in Iowa for
Fiscal Year 2025 with a population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa
Cities
/°
14
Page 517 of 939
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
1
Percentage of Legal
Debt Limit Utilized
11
Des Moines (FY25)
964.798.967
$ 573.230.000
59.41 %
10
Cedar Rapids FY 25
767.559.335
S 428,550,000
55.83 °
9
1W. Des Moines(FY25)
551,635,692
307 090 000
55.67 °
8
Waterloo (FY25)
$ 267.626.798
$ 137.905.065
51.53 %
6
Daven ort FY25
493 660 291
S 176,195,000
35.69 °
5
Dubuaue (FY261
$ 323.629.585
$ 108.410.164
33.50 %
4
Ankeny FY25
529,988.951
97,645,000
18.42 °
Am(FY25)
28 45 527
S 56,710,000
17.27 °
2
Iowa Citv (FY25)
$ 435.367.793
$ 65.945.000
15.15 %
1
Council Bluffs (FY25)
1 $ 427,559,692
S 61,320,000
14.34 °
Av r w D
205,152,5071
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Percent of Legal Debt Limit Utilized
75%
59.41
50% _
33.50% 35.690/. 36.33%
39.96%
25% ° 18 42°/
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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 (36.33%) is 8.45% higher than Dubuque (33.50%).
15
Page 518 of 939
$324
$297
$270
c
0
$243
$216
$189
Total Debt (In Millions)
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY16 Adopted E FY26 Adopted
The City will issue $192,101,423 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).
By the end of the Fiscal Year 2026 5-Year Capital Improvement Program (CIP) budget
the total amount of debt for the City of Dubuque would be $310.6 million (32.9% of the
statutory debt limit), less than the current 33.50%, and the projection is to be at 200.8
million (20% of statutory debt limit) within 10 years.
16
Page 519 of 939
17. General Fund Reserve
The City maintains a general fund reserve, or working balance, to allow for
unforeseen expenses that may occur. Moody's Investor Service recommends a
20% General Fund Operating Reserve for "AA" rated cities. May 2021, Moody's
Investor Services upgraded the City's Water Enterprise's outstanding revenue
bonds from Al 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.
Fund
Fiscal
Year
Reserve
(As •- of
"
changeReason for from previous Fiscal Year
Moody's
General Fund
Calculation
L_
FY 2021
40.72%
Increase due to American Rescue Plan Act funds received
0�1'1 9 million) frman nncifinnc and rnnital nrniartc thrni inh
Increase due to American Rescue Plan Act funds received
($13.2 million), capital projects not expended before the end
FY 2022
49.16%
45.09%
of the FY and vnrant nnGitinnG
Increase due to American Rescue Plan Act funds not spent
($26.4 million), capital projects not expended before the end
FY 2023
55.82%
62.99 %
Decrease due to spend down of American Rescue Plan Act
FY 2024
51.19%
62.41 %
funds.
Decrease due to spend down of American Rescue Plan Act
FY 2025
43.07%
58.14 %
funds.
17
Page 520 of 939
50
40
0
c
a�
2 30
a�
20
10
Fund Reserve as a Percent of General Fund Revenue
55.82%
5
49.16% 1.19%
40.72%
31.24%
2906%
i
FY FY FY FY
19 20 21 22
43.07%
37.580/37.580/37.
FY FY FY FY
23 24 25 26
Fiscal Year
37.58%
FY FY FY FY
27 28 29 30
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 percent.
After all planned expenditures in FY 2026, the City of Dubuque will have a
general fund reserve of 37.58% of general fund revenues as a percent of general
fund revenues computed by the accrual basis or 58.14% 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 $26,946,677 on June 30, 2026 as compared to
the general fund reserve balance on an accrual basis of $39,652,572. The
general fund reserve balance on an accrual basis exceeds 27% in FY 2026,
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.
18
Page 521 of 939
General Fund Reserve Projections:
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
$
$45 452 572
43.07 %
58.14 %
FY2026
$
$39,652,572
37.58 %
54.73 %
FY2027
$
$39,652,572
37.58 %
51.32 %
FY2028
$
$39,652,572
37.58 %
47.91 %
FY2029
$
$39,652,572
37.58 %
44.50 %
FY2030
$
$39,652,572
37.58 %
43.03 %
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://dollarsandcents.citVofdubugue.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
URL: http://expenses.citVofdubugue.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
19
Page 522 of 939
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.
There will be seven City Council special meetings prior to the adoption of the FY 2027
budget before the state mandated deadline of April 30, 2026.
The recommended maximum property tax dollars in FY 2027 is $31,941,065 (tax
rate of $10.0637) or a 6.93% increase over FY2026 property tax dollars.
At this public hearing, the only options available to City Council are to approve
the amount of proposed property tax rate and dollars as is or decrease it.
The requested action step is for City Council to adopt the attached resolution setting the
public hearing date for the Proposed Fiscal Year 2027 Tax Rate and Dollars and
Taxpayer Statements as required by Section 384.15A of the Code of Iowa and publish
the recommended rate in the taxpayer statement mailed by Dubuque County.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Laura Bendorf, Budget Manager
20
Page 523 of 939
CITY NAME: NOTICE OF PUBLIC HEARING - CITY OF DUBUQUE - PROPOSED PROPERTY TAX LEVY CITY #: 31-288
DUBUQUE Fiscal Year July 1, 2026 - June 30, 2027
The City Council will conduct a public hearing on the proposed Fiscal Year City property tax levy as follows:
Meeting Date: 3/23/2026 Meeting Time: 06:30 PM Meeting Location: City Council Chambers, 350 W 6th St.
At the public hearing any resident or taxpayer may present objections to, or arguments in favor of the proposed tax levy. After the hearing of the proposed tax
levy, the City Council will publish notice and hold a hearing on the proposed city budget.
City Website (if available)
www.cityofdubuque.org
City Telephone Number
(563)589-4398
Iowa Department of Management
Current Year
Certified
Property Tax
2025 - 2026
Budget Year
Effective Property
Tax
2026 - 2027
Budget Year
Proposed
Property Tax
2026 - 2027
Taxable Valuations for Non -Debt Service
2,893,074,400
3,072,271,414
3,072,271,414
Consolidated General Fund
22,523,944
22,523,944
23,450,064
Operation & Maintenance of Public Transit
1,882,118
1,882,118
2,196,766
Aviation Authority
0
0
0
Liability, Property & Self Insurance
1,513,541
1,513,541
1,384,919
Support of Local Emergency Mgmt. Comm.
0
0
0
Unified Law Enforcement
0
0
0
Police & Fire Retirement
0
0
0
FICA & IPERS (If at General Fund Limit)
2,962,537
2,962,537
3,966,917
Other Employee Benefits
0
0
0
Capital Projects (Capital Improv. Reserve)
0
0
0
Taxable Value for Debt Service
3,480,914,961
3,766,888,485
3,766,888,485
Debt Service
280,283
280,283
282,630
CITY REGULAR TOTAL PROPERTY TAX
29,162,423
29,162,423
31,281,296
CITY REGULAR TAX RATE
10.06372
9.47532
10.16485
Taxable Value for City Ag Land
3,458,250
3,460,836
3,460,836
Ag Land
10,371
10,371
10,396
CITY AG LAND TAX RATE
2.99892
2.99667
3.00375
Tax Rate Comparison -Current VS. Proposed
Residential property with an
Actual/Assessed Valuation of $100,0003110,000
Current Year
Certified
2025/2026
Budget Year
Proposed
2026/2027
Percent
Change
City Regular Residential
477
498
4.40
Commercial property with an
Actual/Assessed Valuation of $300,000/$330,000
Current Year
Certified
Budget YearCertified Proposed
2026/20 d
Percent
Change
City Regular Commercial
2,0751
2,326
12.10
Note: Acmal/Assessea vamation is multlpllea by a KOi1bacx Percentage to get to the taxable valuation to calculate Property -lazes. Kesiaentiai ana commercial properties
have the same rollback percentage through $150,000 of actual/assessed valuation.
Reasons for tax increase if proposed exceeds the current:
Essential wage adjustments for current agreements, upcoming negotiations, and non -represented staff. Also continued implementation of a classification and compensation
study to ensure fair pay and strengthen our workforce, ultimately enhancing the quality of services we provide to the community.
Page 524 of 939
SUMMARY OF ALL REQUESTED IMPROVEMENT PACKAGES
FISCAL YEAR 2027
Department Description
Recurring Requested Improvement Packages - General Fund
City Attorney
Police Department Records license
City Clerk
Business License and Permits Fee Increase
City Manager's Office
Growing Sustainable Communities Conference elimination
Community Impact
Increase city's financial support for Community Impact Administrative Support
position by 0.58 FTE.
Economic Development
Bringing in a Arts Grants Consultant for grant eligibility and financial review
process and eliminate a 0.25 FTE intern position.
Economic Development
SlideRoom Grant Application Software
Emergency Communications
911 surcharge shortfall
Emergency Communications
911 Public Safety Applicants testing software upgrade
Emergency Communications
Software to track training requirements for 911 Dispatch staff
Emergency Communications
Emergency Communications Vehicle
Engineering
Full size cargo van equipped with storage racking, tools and supplies for
Facilities Maintenance
Engineering
1.0 FTE Maintenance worker for all City Buildings
Engineering
1.0 FTE Custodian I for the Data Center (Chavenelle Rd) location.
Engineering
New truck for the Engineering Technician position. The addition of this truck will
ensure the new Engineering Technician position can perform duties efficiently
and safely without relying on shared or personal vehicles.
Fire
New Position for Fire Code Official / Fire Prevention & Plan Review Manager
Fire
Addition of a new Computer Workstation at Fire station 4 to improve efficiency
and reduce delays
Fire
Firefighter 2
Fire
Firefighter 3
Fire
Firefighter 4
Fire
Firefighter 5
Fire
Firefighter 6
Fire
Firefighter 7
Fire
Firefighter 8
Fire
Firefighter 9
Fire
Incorporating Scenario -based assessments promotional testing process
Fire
Annual Generator Maintenance
Fire
Firefighter 1
Health Services
CitizenServe Permitting and Inspection (7) software licenses
Health Services
Part -Time Animal Control Officer
Housing & Community Development
Electronic Code Access to ICC's code library
Housing & Community Development
H&CD Administrative Support Professional (Requests in General Fund and Lead
Fund)
Information Technology
User Technology Support Specialist
Information Technology
Lead Applications Network Analyst
Recurring/Non-
ADDL
ADDL
Net Impact
Recurring
Expense
Revenue
R
$
600
$
465
$
135
R
$
-
$
2,145
$
(2,145)
R
$
(91,145)
$
62,489
$
(28,656)
R
$
43,157
$
43,157
R
$
3,000
$
10,417
$
(7,417)
R
$
3,000
$
3,000
R
$
78,000
$
-
$
78,000
R
$
2,368
$
1,184
$
1,184
R
$
3,000
$
1,500
$
1,500
R
$
40,000
$
20,000
$
20,000
R
$
62,000
$
62,000
R
$
86,439
$
86,439
R
$
77,793
$
40,581
$
37,212
R
$
49,500
$
49,500
R
$
195,202
$
195,202
R
$
2,075
$
2,075
R
$
108,242
$
80,678
$
27,564
R
$
108,242
$
80,678
$
27,564
R
$
108,242
$
80,678
$
27,564
R
$
108,242
$
80,678
$
27,564
R
$
108,242
$
80,678
$
27,564
R
$
108,242
$
80,678
$
27,564
R
$
108,242
$
80,678
$
27,564
R
$
108,242
$
80,678
$
27,564
R
$
9,000
$
9,000
R
$
3,120
$
3,120
R
$
108,242
$
80,678
$
27,564
R
$
10,500
$
10,500
R
$
50,822
$
50,822
R
$
1,300
$
1,300
R
$
69,548
$
69,548
R
$
91,867
$
91,867
R
$
105,435
$
105,435
Page 525 of 939
Information Technology
IT Service Management Software - combines several pieces of software that IT
R
$
75,000
$
75,000
currently uses under one umbrella
Information Technology
Addition of a 2nd IT vehicle
R
$
40,000
$
40,000
Library
Library Aide (1.0 FTE, NB09) to Librarian 1 (1.0 FTE, NB12) in Adult Services
R
$
80,632
$ 68,544
$
12,088
Library
Library Aide (1.0 FTE, NB09) to Librarian 1 (1.0 FTE, NB12) for the Library Aide-
R
$
80,632
$ 68,544
$
12,088
Youth Services position.
Library
Library Aide (1.0 FTE, NB09) to Librarian 1 (1.0 FTE, NB12) for the Library Aide-
R
$
80,632
$ 68,544
$
12,088
Teen Services position.
Parks
Parks Patrol Additional 1,510 Hours
R
$
39,865
$
39,865
Parks
1.0 FTE Forestry Technician
R
$
73,586
$
73,586
Police
New Crime Analyst Intern Position
R
$
9,011
$
9,011
Public Works
Fleet A/C Machine (R-1234yf)
R
$
9,750
$
9,750
Recreation
Golf cart passes increased $50.
R
$
-
$ 2,600
$
(2,600)
Recreation
Reallocation and reduction of temporary employee expenses
R
$ 26,295
$
(26,295)
Recreation
Mobile Event Trailer - 0.1 FTE and income increase
R
$
2,641
$ 2,700
$
(59)
Recreation
Full-time Communications Specialist (1.0 FTE, NB-1 1). Recommended from
Parks & Rec master plan. This position is needed due to citizens not being
aware of Parks and Recreation offerings.
R
$
102,658
$
102,658
Part-time Bus Attendant Position (0.50 FTE, NB-05). This position is needed due
Transportation Services
to safety concerns with student on the afternoon buses
R
$
26,251
$
26,251
TOTAL GENERAL FUND RECURRING PACKAGES
$
2,491,417
$ 1,102,110
$
1,514,285
Nonrecurring Requested Improvement Packages - General Fund
City Clerk
Desktop to Laptop Upgrade
N
$
300
$ 232 $
68
City Manager's Office
Org Culture/EQ Transition Consultant
N
$
96,000
$ 74,390 $
21,610
City Manager's Office
Climate Action Coordinator - 1 year extension
N
$
103,737
$ - $
103,737
City Manager's Office
Energy Savers Program - outdated and inefficient heat source and/or water
N
$
85,000
$
85,000
heater replacements
Community Impact
Increasing funding for neighborhood association grant
N
$
15,000
$
15,000
Economic Development
Art on the River Artist Stipend Increase to bring in number of artist participation.
N
$
2,200
$
2,200
Emergency Communications
Communications Training Officer program - 4 staff members
N
$
2,200
$ 1,100 $
1,100
Emergency Communications
Quality Assurance Certification
N
$
4,882
$
4,882
Finance
Safety and Risk Software
N
$
20,000
$
20,000
Finance
Safety Equipment
N
$
10,000
$
10,000
Finance
Safety Consulting Services
N
$
25,000
$
25,000
Fire
Fire Department Mental Health Wellness Checks
N
$
22,000
$
22,000
Fire
Purchase of Incident Command Boards
N
$
1,500
$
1,500
Fire
Purchase items for Employee Recognition
N
$
5,000
$
5,000
Fire
Contract External ICS Training essential for effective command and coordination
N
$
3,000
$
3,000
during complex incidents
Fire
Replacement of Garage door at Fire Station 5
N
$
5,000
$
5,000
Fire
Creation of Dubuque Fire Explorer Post Program for youth ages 14-18
N
$
10,000
$
10,000
Fire
Epoxy floor at fire station 5
N
$
9,000
$
9,000
Health Services
Community Health Assessment and Health Improvement Plan Outreach &
N
$
5,200
$
5,200
Engagement
Page 526 of 939
Health Services
Community Pet Education Event
N
$
2,500
$
2,500
Health Services
Rabies Vaccination Voucher
N
$
5,000
$
5,000
Health Services
National Environmental Health Assoc Conference - 2 staff members
N
$
5,090
$
5,090
Health Services
Animal Control Truck Safety Accessories - seat covers, floor mats and a cargo
N
$
1,208
divider.
$
1,208
Health Services
Animal Control Truck Vehicle Wrap
N
$
2,500
$
2,500
Health Services
Animal Control Postcard Mailing - promotion of new pet licensing software (2
N
$
9,130
year recurring request)
$
9,130
Health Services
National Assoc of County & City Health Officials Preparedness Summit for
N
$
3,500
Emergency Preparedness Planner
$
3,500
Health Services
Int'I Assoc of Emerg Managers Conference
N
$
3,700
$
3,700
Health Services
Dale Carnegie Training - Animal Control Officer & Environmental Sanitarian
N
$
4,700
$
4,700
Housing & Community Development
Adding Funding for Building Demolitions
N
$
72,500
$
72,500
Human Resources
Digitizing City documents with a third party provider
N
$
80,000
$ 61,992 $
18,008
Human Resources
Temp Office Asst for Scanning
N
$
29,160
$ 22,596 $
6,564
Human Resources
City of Dubuque shirts for HR staff
N
$
875
$ 678 $
197
Human Resources
SHRM-CP certification for HR staff
N
$
1,150
$ 891 $
259
Human Resources
HR Employment Specialist to attend the annual NeoGov conference.
N
$
2,463
$ 1,898 $
565
Human Resoures
Recruitment Services for City Manager
N
$
50,000
$ 38,530 $
11,470
Human Rights
Community Dialogue Event focused on the themes of belonging and connection.
N
$
2,020
$
2,020
Human Rights
Civil Rights Education Community Event
N
$
2,020
$
2,020
Human Rights
Bus Wrap & Social Media Campaign to advertise Human Rights dept and
N
$
6,460
$
6,460
how/why to file a discrimination complaint
Information Technology
Plotter for the Information Technology department
N
$
5,000
$
5,000
Information Technology
IT Staff City of Dubuque Polos
N
$
1,500
$
1,500
Information Technology
Training and education for IT staff - classes, conferences, certifications and
N
$
28,000
$
28,000
other education needs
Information Technology
Hybrid work from home setup for all salaried employees. Includes docks, power
N
$
6,000
$
6,000
strips, and headset/speakers.
Information Technology
Copilot Licensing - 200 additional licenses
N
$
72,000
$
72,000
Information Technology
5 employees to attend virtual Esri GIS training per year.
N
$
16,000
$
16,000
Information Technology
Additional conference per year for GIS Coordinator
N
$
3,000
$
3,000
Information Technology
AED for the Information Technology office
N
$
2,700
$
2,700
Information Technology
City Hall 3rd Floor Network Switch Enclosure - lockable doors
N
$
2,500
$
2,500
Information Technology
Fluke Optical Time Domain Reflectometer for testing fiber optic cable
N
$
29,000
$
29,000
performance
Information Technology
Additional Assest Management Equipment - 3 spare laptops, 3 spare desktops,
N
$
13,000
$
13,000
asset tag scanners, asset management cart, 3 spare docks, and 3 spare
monitors.
Information Technology
Dual 34" curved monitors with privacy glass for all IT staff.
N
$
17,000
$
17,000
Information Technology
Outdoor hardtop gazebo at the IT office
N
$
5,000
$
5,000
Parks
ISU Shade Tree Short Course for forestry staff.
N
$
1,731
$
1,731
Planning
IowACE Education Conference - Zoning Enforcement Officer
N
$
800
$ 553 $
247
Planning
Additional Planner to attend the National American Planning Association
N
$
3,000
$ 2,075 $
926
Conference (APA)
Page 527 of 939
Planning
City of Dubuque shirts for Planning staff
N
$
420
$ 290 $
130
Planning
Dale Carnegie training for the Planning Technician
N
$
2,500
$ 1,729 $
771
Planning
Desktop to Laptop Upgrade for Planning Professional Admin Assistant
N
$
1,010
$ 698 $
312
Planning
Upgrade Computer to Engineering Computer for two Assistant Planners
N
$
1,200
$ 830 $
370
Planning
Leadership Dubuque training for Assistant Planner
N
$
1,570
$ 1,086 $
484
Planning
Safe Routes to School Bike Gear
N
$
563
$
563
Police
Mental health wellness checks
N
$
11,400
$
11,400
Police
Non -Profit Special Event Volunteers
N
$
5,000
$
5,000
Police
Professional Development funds to allow upto 25 officers per year for
N
$
40,000
$
40,000
professional development training.
Police
Repurpose two squad cars to conduct annual state -mandated vehicle operation
N
$
19,690
$ (20,000) $
39,690
training.
Public Works
Public Works Employee Training (this request includes funding in Solid Waste
N
$
2,400
$
2,400
Sanitary Sewer, Road Use Tax, Garage and General Fund)
Public Works
Employee Recognition
N
$
1,500
$
1,500
Public Works Employee Training (this request includes funding in Solid Waste
Public Works
Sanitary Sewer, Road Use Tax, Garage and General Fund)
N
$
2,400
$
2,400
Recreation
Wi-Fi access at the McAleece ballfield complex.
N
$
2,500
$
2,500
Recreation
Increase in two supervisors' and business development manager's education
N
$
3,600
$
3,600
reimbursement so they can attend high quality continuing education
opportunities.
Recreation
4 Desktop to laptop upgrades
N
$
1,800
$
1,800
Recreation
McAleece ballfield safety net replacement
N
$
3,000
$
3,000
Recreation
Wi-Fi access throughout the Bunker Hill Admin building to be used by Golf
N
$
2,500
$
2,500
patrons and event/rental/meeting users.
Recreation
Bunker Hill Outdoor sound system for events and emergency communications
N
$
9,647
$
9,647
Recreation
Bunker Hill Clubhouse additional fryer
N
$
1,600
$
1,600
TOTAL GENERAL FUND NON -RECURRING PACKAGES
$
1,029,526
$ 189,569 $
839,957
ENTERPRISE FUNDS
Parking Fund
Parking Permit rate increases for Central Ramp, 5th St Ramp and Port of
Parking
Dubuque Lot
R
$ 102,102 $
(102,102)
Subtotal Parking Fund
$
$ 102,102 $
(102,102)
Stormwater Fund
City Manager's Office
Growing Sustainable Communities Conference elimination
R
$
(345)
$
(345)
1.0 FTE Civil Engineer II for the Water Resources Division (cost split 50% with
Engineering
Sanitary Fund)
R
$
63,412
$
63,412
1.0 FTE Civil Engineer III for the Water Resources Division. (Cost split 70%
Engineering
Stormwater Fund, 30% Sanitary)
R
$
110,027
$
110,027
Increase the funding in the 28E Agreement with Dubuque County and the Soil &
Engineering
Water Conservation District to support an additional 0.5 FTE.
R
$
26,441
$
26,441
Engineering
1.0 FTE Administrative Support Professional for the Engineering Water
R
Resources team. (Cost shared 50% with Sanitary Funds)
$
38,927
$
38,927
Page 528 of 939
Subtotal Stormwater Fund
$
238,462
$ $
238,462
Water Fund
GPS technology improvement to support reliable and accurate mapping of
Water
underground infrastructure
R
$
9,626
$
9,626
Water
EPA Service Line Material Annual Notifications
R
$
4,000
$
4,000
Cold -weather and high -visibility safety gear for administration staff who must
perform outdoor tasks or respond to incidents in inclement weather or high -traffic
Water
area
R
$
850
$
850
Subtotal Water Fund
$
14,476
$ - $
14,476
Sanitary Sewer Fund
City Manager's Office
Growing Sustainable Communities Conference elimination
R
$
(2,175)
$
(2,175)
1.0 FTE Civil Engineer II for the Water Resources Division (cost split 50% with
Engineering
Stormwater Fund)
R
$
63,412
$
63,412
1.0 FTE Civil Engineer III for the Water Resources Division. (Cost split 70%
Engineering
Stormwater Fund, 30% Sanitary)
R
$
47,154
$
47,154
1.0 FTE Administrative Support Professional for the Engineering Water
Engineering
Resources team. (Cost shared 50% with Stormwater Funds)
R
$
38,928
$
38,928
Public Works
Public Works Employee Training (this request includes funding in Solid Waste
N
$
1,200
$
1,200
Sanitary Sewer, Road Use Tax, Garage and General Fund
WRRC
PT Administrative Support Professional (0.4 FTE)
R
$
24,107
$
24,107
WRRC
Activated Sludge Tank Cleaning
R
$
42,500
$
42,500
Stormwater Maintenance Activities - reimbursement for staff time spent on
WRRC
Stormwater activities
R
$ 6,950 $
(6,950)
WRRC
.25 FTE Part -Time Custodial Services
R
$
19,694
$ 12,700 $
6,994
Subtotal Sanitary Sewer Fund
$
234,820
$ 19,650 $
215,170
Solid Waste Fund
City Manager's Office
Growing Sustainable Communities Conference elimination
R
$
(585)
$
(585)
Public Works
Resource Management Supervisor Rubicon Summit Attendance
R
$
3,750
$
3,750
Public Works
Resource Management Supervisor SWANA RCON Conference Attendance
R
$
3,750
$
3,750
Public Works
Public Works Employee Training (this request includes funding in Solid Waste
N
$
4,000
$
4,000
Sanitary Sewer, Road Use Tax, Garage and General Fund
Public Works
Solid Waste Small Tools and Equipment
R
$
1,200
$
1,200
Subtotal Solid Waste Fund
$
12,115 $
$
12,115
Landfill
City Manager's Office
Growing Sustainable Communities Conference elimination
R
$
(900)
$
(900)
DMASWA
Brush Mower
R
$
11,000
$
11,000
DMASWA
WiFi Equipment
R
$
10,500
$
10,500
DMASWA
GIS Asset Mapping
R
$
73,000
$
73,000
DMASWA
Environmental Impact Fund
R
$
192,500
$
192,500
DMASWA
Semi Tractor & Trailer
R
$
300,000
$
300,000
Public Works
Landfill Small Tools & Equipment
N
$
2,000
$
2,000
Public Works
Smartphones for Equipment Operators
R
$
5,520
$
5,520
Page 529 of 939
Public Works
AED Replacement and Additional AED w/Cab
N
$
6,084
$
6,084
Public Works
Staff Uniform Service
R
$
19,478
$
19,478
Public Works
Landfill Supervisor USCC Conference
R
$
3,750
$
3,750
Public Works
Environmental Tech NAHMMA Conference
R
$
3,650
$
3,650
Public Works
Educator Badger SWANA Conference
R
$
1,110
$
1,110
Public Works
Educator NAHMMA Conference
R
$
3,650
$
3,650
Public Works
Educator SWANA Conference Attendance
R
$
3,750
$
3,750
Subtotal Landfill Fund
$
635,092 $
$
635,092
Road Use T
City Manager's Office
Growing Sustainable Communities Conference elimination
R
$
(540)
$
(540)
Public Works
Public Works Employee Training (this request includes funding in Solid Waste
N
$
4,800
$
4,800
Sanitary Sewer, Road Use Tax, Garage and General Fund
Public Works
Two Utility Worker Positions
R
$
113,630
$
113,630
Public Works
Street Maintenance overtime for Barricades/Bollards during Special Events
R
$
10,000
$
10,000
Subtotal Road Use Tax Fund
$
127,890
$ - $
127,890
Garage Fund
City Manager's Office
Growing Sustainable Communities Conference elimination
R
$
(195)
$
(195)
Subtotal Garage Fund
$
(195)
$ $
(195)
Lead Paint
Housing
H&CD Administrative Support Professional (Requests in General Fund and Lead
R
$
4,858
$
4,858
Paint Fund)
Subtotal Lead Paint Fund
4.858
$
4 858
Cable TV
City Manager's Office
Growing Sustainable Communities Conference elimination
R
$
1,220)
$
1,220)
Subtotal Cable TV Fund
,220)
$
(1,220)
Page 530 of 939
Prepared by: Jennifer Larson City of Dubuque 50 W 13°i St Dubuque IA 52001 563 589-4322
Return to: Jennifer Larson, City of Dubuque, 50 W. 131h St. Dubuque, IA 52001, 563.589-4100
RESOLUTION NO. 68-26
SETTING A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2027 TAX
RATE AND DOLLARS AND TAXPAYER STATEMENTS
Whereas, pursuant to State of Iowa Section 24.2A (4)(a) as adopted by Iowa
HF718, the City of Dubuque is required to hold a public hearing to consider the
proposed Fiscal Year 2027 city tax rate and dollars and taxpayer statements; and
Whereas, the notice of hearing must be published not less than 4 days and not
more than 20 days prior to the date of the hearing; and
Whereas, at said hearing, the City Council is required to review the proposed
tax notice for the Fiscal Year 2027 Tax Rate and Dollars and Taxpayer Statements.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA THAT:
Section 1. The Dubuque City Council will conduct a public hearing on March 23,
2026, at 6:30 p.m. at City Council Chambers, 350 W 6th St. and virtually.
Section 2. The Chief Financial Officer is hereby directed to prepare a Notice of
Public Hearing on the proposed Fiscal Year City Property Tax Levy with the
required information pursuant to Section 24.2A (4)(a) as adopted by Iowa HF718.
Section 3. The City Clerk is hereby directed to publish the notice of public
hearing pursuant to Section 24.2A (4)(a) as adopted by Iowa HF718.
Passed, adopted and approved this 2nd day of March 2026.
Attest:
Adrienne N. Breitfelder, pity Clerk
. •-''i •
M&
Setting the Public Hearing on
Proposed Fiscal Year 2027
Property Tax Levy
March 2, 2026
1
Proposed Property Tax Rate
2
FY2026 Proposed
FY2027
%
Change
$
Change
Tax Rate$10.0637 $10.1648 1%$0.10
Property
Tax Asking
$29.9
million
$31.9
million 6.93%$2.1
million
Impact to Property Classes
3
Property Type FY26 City
Property Tax
Payment
FY27 City
Property Tax
Payment
Cost
Change
Percent
Change
Residential: Avg. value = $213,211 $889.20 $915.88 +$26.68 +3.0 %
Commercial Avg. Value = $624,927*$4,253.76 $5,023.83 +$770.07 +18.1 %
Industrial: Avg. Value = $731,693*$5,090.27 $6,000.56 +$910.29 +17.9 %
*Since residential rollback is applied to the first $150,000, we will be breaking these
down for different values for the March 23, 2026, public hearing.
City Property Tax Rate
Comparison
4
$10.16 $10.27 $10.53 $11.77
$15.39 $15.43 $15.60 $16.58 $16.66 $17.56 $17.69
$21.79
Dubuque
(FY27)
Ames
(FY27)
Ankeny
(FY26)*
West Des
Moines
(FY26)*
AVERAGE
w/o
Dubuque
Iowa City
(FY27)
Sioux City
(FY27)
Davenport
(FY27)
Cedar
Rapids
(FY27)
Des
Moines
(FY26)*
Council
Bluffs
(FY26)
Waterloo
(FY26)
Waterloo = 11 4% higher than Dubuque Average = 53% higher than Dubuque
Average Annual Increase:
1989-2026
Since 1989, the average homeowner has
averaged an annual increase in costs in the
City portion of their property taxes of +1.52%,
or about +$9.92 a year.
If the State had been fully funding the
Homestead Tax Credit, the increase would
have averaged about +$7.32 a year.
5
6
Significant Issues
Impacting Budget
•$5.3 million in internal loans repaid to GDTIF in FY27 with $1
million for property tax relief with remaining $4.3 million split
between improvement packages and reserves for FY28 budget
in preparation for property tax reform
•In FY28 and Beyond, GDTIF will begin collecting 75% of
revenues with remaining 25% returned to taxing bodies,
including $1.2 million to the City of Dubuque.
•As a result, beginning in FY28, the GDTIF District will have $3.4
million less each year for programs and projects.
7
Greater Downtown Tax Increment
Financing (GDTIF)
•The City of Dubuque will have a backfill phase out over an
eight-year period from FY23-FY30 for the 90% rollback.
FY27 backfill for the 90% rollback is $485,000, which is a
$808K reduction from FY22.
•The projected backfill for Dubuque for the first-tier
assessment limitation in FY27 is estimated to be $170,000.
8
State-Funded Backfill on
Commercial & Industrial Property Tax
Gaming Revenue
•DRA lease payments estimated to decrease
$134,176 from $7,213,362 in FY26 to
$7,079,186 in FY27
• February 2027 DRA distributions ($1,286,001)
will be used for general fund property tax
relief
9
Interest Revenue
•Interest revenue decreases from $2,300,097 in
FY26 to $1,620,974 in FY27.
•The FY27 budget is based on projected
general fund cash balance, and projected
declining interest rates.
10
Local Option Sales
Tax Revenue
•Sales tax receipts are projected to decrease
from $6.4 million in FY26 to $6.2 million in
FY27. The FY27 budget is based on re-
estimated FY26 receipts.
50% to property tax relief, 50% to capital
improvements (20% for maintenance of City
buildings and 30% for street maintenance)
11
Hotel/Motel Tax
Revenue
•Hotel/Motel Tax decreasing from $3.9
million in FY26 to $3.5 million in
FY27.
•The FY27 budget is based on re-
estimated FY26 receipts.
12
Riverfront Property
Lease Revenue
•Projected to increase by $101,268 in
FY27 to $4,374,313 due to the
estimated consumer price index
increase
13
Franchise Fee
Revenue
•Franchise fees (Gas & Electric) are
estimated to increase from $6.1 million in
FY26 to $7.1 million in FY27.
•FY27 budget is based on re-estimated
FY26 receipts.
14
Ambulance Revenue
•Ambulance Fees increased from $1,756,870 in FY26
to $2,778,351 in FY27
•Council approved advanced life support and basic
life support service fees to match the third-party
cost report.
15
Ambulance Revenue
•These funds are being used to add five firefighter
positions in FY26 and should the City receive a
SAFER grant, nine more firefighter positions in
FY27.
16
City Contribution to
Municipal Fire and Police
Retirement System
•Decreased from 22.56% percent in FY26 to 21.86%
percent in FY27 (general fund savings of $80,598 for
Police and $(71,242) for Fire or a total of $151,840).
17
Wage Increases
•Dubuque Police Protective Association includes a 5% increase
•Dubuque Professional Fire Fighters Association = 4% increase
•International Union of Operating Engineers = 3.25% increase
•Teamsters Local Union No. 120 Bus Operators & Teamsters Local
Union No. 120 = 3% increase
•Non-represented employees = 3% increase
Total cost of the wage increases for collective bargaining and non-
represented employees, and continued classification and
compensation study implementation is an increase of $2,643,491 to the
General Fund.
18
Health Insurance
•City portion of health insurance expense is
projected to increase from $1,119 per month per
contract to $1,175 per month per contract (based on
662 contracts) in FY27 (increase of $421,055 to the
general fund).
•Based on FY26 actual experience, FY27 is projected
to have a 5.35% increase in health insurance costs.
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Transit
•The increase in property tax support for Transit
from FY26 to FY27 is $315,838, reflecting a decrease
in Federal Transportation Administration Operating
revenue ($154,667); a decrease in Federal
Transportation Administration Capital ($344,329), an
increase in employee expense ($120,888); and a
decrease in supplies and services ($213,908).
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Moody’s Rating
In January, 2025, Moody’s Investor Services affirmed
the Aa2 credit rating on general obligation bonds.
In July, 2023, Moody’s Investor Services upgraded
the City’s credit rating from Aa3 to Aa2.
The higher credit rating means the City can borrow
money at lower costs and is outside affirmation of
the fiscally responsible decision making of the Mayor
and City Council.
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Statutory Debt Limit Used
(FY26 Adopted)
90%87%
66%60%
53%
47%44%43%
36%36%34%33%32%31%31%33%30%27%25%22%20%
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY15 to FY26 = 57% decrease
in use of the statutory debt
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Percentage of Statutory
Debt Limit Utilized
14.3%15.2%17.3%
24.1%
33.5%35.7%36.3%40.0%
51.5%55.7%55.8%59.4%
Total Debt
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Top 5 Debt Issues
Debt Type Project Debt Amount
State Revolving Fund Loan Old Mill Sanitary Phase 1 and 2 $40.9 million
General Obligation Iowa Amphitheater – Schmitt
Island
$8.8 million
General Obligation Fire
Building/Vehicles/Equipment
$6.2 million
General Obligation Parking Improvements $3.9 million
State Revolving Fund Loan Granger Creek Sanitary $2.5 million
Total Top 5 Debt Issues $62.3 million
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General Fund Reserve
Projections
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The General Fund Reserve (27%) is $24.6
million in Fiscal Year 2026.
Recommended Approval
The recommended resolution for
maximum property tax dollars in FY2027
is $31,941,065 (tax rate of $10.1648)
or a 6.93%% increase over FY2026
property tax dollars.
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FY2027 Budget Public Input
Opportunities
•Public Hearing to Establish Maximum FY2026 Property Tax Levy: March 23
•Recommended Budget Presentation: April 6
•Public Meetings: April 7, 9, 13, 15, 16, 21, 22
•Public Hearing to Adopt: April 28
•Budget Comment Form at www.cityofdubuque.org/FY2027budget
•Contact City Council: www.cityofdubuque.org/councilcontacts
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