Public Hearing for the Fiscal Year 2027 Amount of Proposed Property Tax Rate and Dollars and the Fiscal Year 2027 Budget and Fiscal Policy GuidelinesCity of Dubuque
City Council
PUBLIC HEARING # 1.
Copyrighted
March 23, 2026
ITEM TITLE: Public Hearing for the Fiscal Year 2027 Amount of Proposed
Property Tax Rate and Dollars and the Fiscal Year 2027
Budget and Fiscal Policy Guidelines
SUMMARY: Proof of publication on notice of public hearing to consider
City Council approval of the Fiscal Year 2027 proposed
maximum property tax dollars of $31,940,934 (tax rate of
$10.1648), or a 6.93% increase over FY2026 property tax
dollars, and the Fiscal Year 2027 Budget and Fiscal Policy
Guidelines, and City Manager recommending approval.
RESOLUTION Approving the Maximum Property Tax Dollars
Requested for Fiscal Year July 1, 2026-June 30, 2027
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. Updated FY 27 Max Prop Tax PH_MVM Memo - Uploaded 3.23.26
2. Redlined Changes - FY 27 Max Prop Tax PH_MVM Memo- Uploaded 3.23.26
3. Updated FY 27 Max Prop Tax PH Staff Memo - Uploaded 3.23.26
4. Redlined Changes - FY 27 Max Prop Tax PH -Uploaded 3.23.26
5. Updated FY2027 Budget & Fiscal Policy Guidelines- Uploaded 3.23.26
6. Redlined Changes-FY2027 Budget & Fiscal Policy Guidelines -Uploaded 3.23.26
7. Updated FY27 Improvement Package Listing - Uploaded 3.20.26
8. Approving Prop Tax Rate Resolution_2026_03_18
9. FY27 Max Property Tax Notice
10. FY27 Proof of Pub Max Prop Tax Public Hearing
11. City Attorney Memo - Budget Hearing Process
12. Public Input -Uploaded 3.23.26
13. Updated MVM Memo - Uploaded 3.20.26
14. Updated Staff Memo - Uploaded 3.20.26
15. MVM Memo 27 Max Prop Tax Support PH_MVM Memo_2026_03_18
16. PH —Max Ptax_Staff Memo_2026_03_19
17. FY2027 Budget & Fiscal Policy Guidelines_2026_03_19
18. FY27 Improvement Package Listing_2026_03_18
Page 3 of 304
THE C
DUUB--'*.-TE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All-Amedu City
2007-2012.2013
2017*2019
SUBJECT: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 23, 2026
Chief Financial Officer Jennifer Larson is recommending City Council approval of the
resolution for the Fiscal Year 2027 proposed property tax rate and dollars and the Fiscal
Year 2027 Budget and Fiscal Policy Guidelines.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollar amount as is or decrease it. li
cannot be increased.
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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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. This would represent a 3.00% or
$26.68 property tax increase for the average Dubuque homeowner.
Page 5 of 304
Type
PropertiesProperty
..
Payment
Payment
Residential:
$889.20
$915.87
+$26.67
+3.0%
Avg. value - $213,211
Commercial:
$150,000 value &
433
381
$716.01
$679.03
-$36.98
-5.2%
below
Commercial:
$150,001-$300,000
232
225
$2,074.61
$2,051.27
-$23.34
-1.1%
value
Commercial:
147
167
$3,433.21
$3,423.52
-$9.69
-0.3%
$300,001-$450,000
Commercial:
588
636
$4,253.76
$5,023.81
+$770.05
+18.1 %
Avg. Value = $624,927
PropertyProperties
Properties
..Property
Payment
Payment
Industrial:
$150,000 value & below
8
8
$716.01
$679.03
-$36.98
-5.2 %
Industrial:
$150,0014300,000
11
9
$2,074.61
$2,051.28
-$23.33
-1.1 %
value
Industrial:
4
3
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
Industrial:
58
58
$5,090.27
$6,000.54
$910.27
+17.9 %
Avg. Value = $731,693
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.
Based on the information the city has today, it appears if the City Council approves the
recommendation the City of Dubuque would still have the lowest property tax rate of the
eleven cities in the State of Iowa with a population over 50,000.
PA
Page 6 of 304
In the current fiscal year, FY2026, the average of the other 10 cities was 55% higher
than Dubuque's property tax rate, and the highest city, Waterloo, had a rate 116%
higher than Dubuque.
For FY2027 there are $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. In the case of the 9 new Firefighter positions
they would be funded from a Federal SAFER Grant, ambulance fees, and eventually
property taxes. The recommended improvement package listing is attached.
The current recommendation for Fiscal Year 2027 is a 3% increase in property tax cost
to the average homeowner, which generates $2.1 million in additional property tax
revenue over Fiscal Year 2026. Each 1 % reduction in the cost increase represents
approximately $300,000 less in property tax revenue.
Change in Avg. Residential Increase
City Tax Payment
in Tax Revenue from
Fiscal Year 2026
% Increase'
•1
% Increase'
• 1
3% Increase
If the City Council chooses an amount of less than 3%, it could impact the
recommendations to fund improvement packages, and the ability of the city to fund
grant programs.
There will be seven City Council special meetings prior to the adoption of the Fiscal
Year 2027 budget before the state mandated deadline of April 30, 2026.
The recommended maximum property tax dollars in FY 2027 is $31,940,934 (tax
rate of $10.1648) or a 6.93% increase over FY2026 property tax dollars.
3
Page 7 of 304
I concur with the recommendation and respectfully recommend Mayor and City Council
approval.
MCVM:jml/sv
Attachments
cc: Crenna Brumwell, City Attorney
Michael C. Van Milligen
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
N
Page 8 of 304
THE C
DUUB--'*.-TE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All-Amedu City
2007-2012.2013
2017*2019
SUBJECT: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 4823, 2026
Chief Financial Officer Jennifer Larson is recommending City Council approval of the
resolution for the Fiscal Year 2027 proposed property tax rate and dollars and the Fiscal
Year 2027 Budget and Fiscal Policy Guidelines.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollar amount as is or decrease it. li
cannot be increased.
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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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. This would represent a 3.00% or
$26.68 property tax increase for the average Dubuque homeowner.
Page 9 of 304
Type
PropertiesProperty
..
Payment
Payment
Residential:
$889.20
$915.87
+$26.67
+3.0%
Avg. value - $213,211
Commercial:
$150,000 value &
433
381
$716.01
$679.03
-$36.98
-5.2%
below
Commercial:
$150,001-$300,000
232
225
$2,074.61
$2,051.27
-$23.34
-1.1%
value
Commercial:
147
167
$3,433.21
$3,423.52
-$9.69
-0.3%
$300,001-$450,000
Commercial:
588
636
$4,253.76
$5,023.81
+$770.05
+18.1 %
Avg. Value = $624,927
PropertyProperties
Properties
..Property
Payment
Payment
Industrial:
$150,000 value & below
8
8
$716.01
$679.03
-$36.98
-5.2 %
Industrial:
$150,0014300,000
11
9
$2,074.61
$2,051.28
-$23.33
-1.1 %
value
Industrial:
4
3
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
Industrial:
58
58
$5,090.27
$6,000.54
$910.27
+17.9 %
Avg. Value = $731,693
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.
Based on the information the city has today, it appears if the City Council approves the
recommendation the City of Dubuque would still have the lowest property tax rate of the
eleven cities in the State of Iowa with a population over 50,000.
PA
Page 10 of 304
In the current fiscal year, FY2026, the average of the other 10 cities was 55% higher
than Dubuque's property tax rate, and the highest city, Waterloo, had a rate 116%
higher than Dubuque.
For FY2027 there are $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. In the case of the 9 new Firefighter positions
they would be funded from a Federal SAFER Grant, ambulance fees, and eventually
property taxes. The recommended improvement package listing is attached.
The current recommendation for Fiscal Year 2027 is a 3% increase in property tax cost
to the average homeowner, which generates $2.1 million in additional property tax
revenue over Fiscal Year 2026. Each 1 % reduction in the cost increase represents
approximately $300,000 less in property tax revenue.
Change in Avg. Residential Increase
City Tax Payment
in Tax Revenue from
Fiscal Year 2026
% Increase'
•1
% Increase'
• 1
3% Increase
0- 1•: •:
If the City Council chooses an amount of less than 3%, it could impact the
recommendations to fund improvement packages, and the ability of the city to fund
grant programs.
There will be seven City Council special meetings prior to the adoption of the Fiscal
Year 2027 budget before the state mandated deadline of April 30, 2026.
The recommended maximum property tax dollars in FY 2027 is $31,940,934 (tax
rate of $10.1648) or a 6.93% increase over FY2026 property tax dollars.
3
Page 11 of 304
I concur with the recommendation and respectfully recommend Mayor and City Council
approval.
MCVM:jml/sv
Attachments
cc: Crenna Brumwell, City Attorney
Michael C. Van Milligen
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
Id
Page 12 of 304
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: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 23, 2026
I am recommending approval of the resolution for the Fiscal Year 2027 proposed
property tax rate and dollars and the Fiscal Year 2027 Budget and Fiscal Policy
Guidelines as required by Section 384.15A of the Code of Iowa.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollars as proposed 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
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 $7.63281 instead of the maximum levy of $8.10.
Page 13 of 304
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 offset
with an increase in the Special Revenue levies. As this offset occurs each year, the
special revenue levies will reach their maximums removing this option.
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.
•Information on how to access the city's internet site, the city's statements, and
other budget documents for prior fiscal years.
2
Page 14 of 304
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 October 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. While the City of Dubuque will be issuing
new debt, 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 $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. The recommended improvement package
listing is attached.
3
Page 15 of 304
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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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
property tax increase for the average Dubuque homeowner.
FY 2026 Proposed % Change $ Change
FY2027
••- 1 1• RON= M.M. 11•• ''1 1
Property • • • • 1 • • • • • �� • •
Property Type
Propertie
Propertie•••
•
•
Change
• •
•
Residential:
$889.20
$915.87
$26.67
3.0 %
Av . vaIu e - $213.211
Commercial:
$716.01
$679.03
-$36.98
-5.2 %
$150,000 value & below
433
381
Commercial:
$2,074.61
$2,051.27
-$23.34
-1.1 %
$150,001-$300,000 value
232
225
Commercial:
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
147
167
Commercial:
$4,253.76
$5,023.81
$770.05
18.1 %
Avg. Value = $624,927
588
636
4
Page 16 of 304
Property
Propertie
Propertie..Property
Tax
Change
Change
Industrial:
$716.01
$679.03
-$36.98
-5.2 %
$150,000 value & below
8
8
Industrial:
$2,074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
11
9
Industrial:
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
4
3
Industrial:
$5,090.27
$6,000.54
$910.27
+17.9 %
Avg. Value = $731,693
58
58
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
FY
Year
2027
Citv Tax Rate
$10.1648
% Chancie in Tax Rate
3.00%
FY
2028
$10.8757
6.99%
FY
2029
$11.0575
1.67%
FY
2030
$11.2837
2.05%
FY
2031
$11.5768
2.32%
Fiscal
Year
FY
2026
"City"
Tax
$29,872,253
Property
Askinas
% Changein
Tax Askinas
%
Impact on
Ava. J Residential
$ Impact on Avg.
Propertv
FY
2027
$31,940,934
+6.93%
+3.00%
+ 33.38
FY
2028
$34,833,948
+9.06%
+6.99^
+ 64.06
FY
2029
$36,22,257
+3.70%
+1.67%
+ 16.38
FY
2030
$37,597,016
+4.08%
+2.05^
+ 20.38
FY
2031
$39,337,027
1
+4.63^
+2.32%
+ 23.59
5
Page 17 of 304
The recommended guideline is a 3.00% or $26.67 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.
Current recommendation is a 3% increase to the average homeowner, which generates
$2.1 million in additional property tax revenue over Fiscal Year 2026. Each 1 %
reduction is approximately $300,000 in property tax revenue.
Change in Avg. Increase
in Tax Revenue
Residential
from
City Tax Payment
Fiscal Year 2026
•. Increase
• . Increase3%
Increase
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.
6
Page 18 of 304
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
Dubuque has the LOWEST property tax rate as compared to the eleven largest cities in
the state. The highest rate (Waterloo (FY26)) is 114.38% higher than Dubuque's rate,
and the average is 53.12% higher than Dubuque. Dubuque's adopted FY 2027 property
tax is $10.16 (increase of 1.00% from FY 2026)
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.
$1.2 million for property tax relief with remaining $4.1 million split between
$974,917 for non -recurring improvement packages, an internal loan to the
refuse collection fund for $675,554, and $2.4 million in reserves for FY28
budget in preparation for property tax reform..
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
7
Page 19 of 304
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
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.
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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 301h. 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.
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. 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
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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. 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 to $2,778,351 in
FY 2027 based on calculated projections using historical averages and
Council approved advanced life support and basic life support service fees
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to match the third -party cost report. 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).
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 $2,675,126 to the General Fund.
12. Health Insurance
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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 $421,050 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
were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031 were
increased 5.38%. FY 2027 will include increased employee contribution effective
January 1, 2027.
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 ($114,293).
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
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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
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
13
Page 25 of 304
being considered together with general fund revenues and balances in the
determination of financial performance.
Under the new methodology, there are two metrics that contribute to
financial performance. Available Fund Balance Ratio ("AFBR") _ (Available
Fund Balance + Net Current Assets/Revenue) and Liquidity Ratio ("LR") _
(Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35,
and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of
2022 in connection to its annual issuance of bonds. At that time, Moody's
calculated the City's AFBR to be 45.2%, and its LR to be 59.8%. The
balances used in these calculations were likely elevated due to unspent
ARPA funds. The change in methodology will now consider revenues and
net assets from business -type activities in these calculations. As such, the
City's general obligation rating will now be directly impacted by the financial
performance of enterprise funds. Establishing rates and charges adequate
to provide both debt service coverage and significant liquidity will be
necessary to maintain the City's ratings.
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 2026 Debt
a. FY 2026 Debt Limit: The FY 2024 assessable value of the community for
calculating the statutory debt limit is $6,472,591,693, which at 5%,
indicates a total General Obligation debt capacity of $323,629,585, which
at 5%, indicates a total General Obligation debt capacity of $323,629,585.
Based on Outstanding G.O. debt (including tax increment debt,
remaining payments on economic development TIF rebates, and
general fund lease agreement) on June 30, 2026 will be $108,410,164
14
Page 26 of 304
(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 $83,700 in
FY 2026 and one issuance for the franchise fee litigation settlement in the
amount of $2,800,000 with debt service of $145,000 in FY 2026. Included
in the debt is $4,661,120 of property tax rebates to businesses creating
and retaining jobs and investing in their businesses.
Statutory Debt Limit
Statutory Debt Limit Used
(as of June 30th)
100%g "0
87%
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FY16 Adopted FY26 Adopted
The City also has debt that is not subject to the statutory debt limit. This debt
includes revenue bonds. Outstanding revenue bonds payable by water, sewer
and stormwater fees on June 30, 2026 will have a balance of $167,789,201. The
total City indebtedness as of June 30, 2026, is projected to be $289,568,909.
15
Page 27 of 304
The total City indebtedness as of June 30, 2025, was $281,085,184. In FY 2026,
the City will have a projected $8,483,725 or 3.02% more in debt. The City is
using debt to accomplish necessary projects and to take advantage of the
attractive interest rates in the current market.
The following chart shows Dubuque's relative position pertaining to use of the
statutory debt limit for Fiscal Year 2026 compared to the other cities in Iowa for
Fiscal Year 2025 with a population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa
Cities
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
Percentage of Legal
Debt Limit Utilized
11
Des Moines FY25
964,798,967
573,230,000
59.41 °
10
Cedar Rapids FY 25
767,559,335
428,550,000
55.8 °
9
W. Des Moines (FY25)
$ 551.635.692
$ 307.090.000
55.67 %
8
Waterloo FY25
267,626.798
137,905,065
51.53 °
7
Sioux City (FY25)
$ 367,743,172
$ 146,935,000
39.96 %
6
1 Davenport FY25
$ 493,660,291
$ 176,195,000
35.69 %
5
Dubuaue (FY26)
$ 323.629.585
$ 108.410.164
33.50 %
4
1 Ankeny FY25
529,988,951
97,645,000
18.42 °
Am(FY25)
328,345,527
$ 56,710,00017.27
°
2
1 Iowa City (FY25)
$ 435.367.793
$ 65.945.000
15.15 %
1
Council Bluffs FY25
427,559,692
61,320,000
1 14.34 °
Average w/o Dubuque
1 $ 205,152,507
1 36.33 %
Percent of Legal Debt Limit Utilized
75%
50%
°
° 14.34%
15.15%
17.27%
18.4
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16
Page 28 of 304
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. The average of the other cities (36.33%) is
8.4% higher than Dubuque (33.50%).
Total Debt (In Millions)
$324
$302.3
$297 $290.1 $289.6
$295.5 $282.0 $279.9 $281.1
$285.7
$27� $265.6 $267.4
$274.7
C $255.9
$264.0 $250.6
$244.3$241.4
$243 $252.1 $249.
$216 1 1 1 1 II — $226.2
$189
N I N
^I ^ $200.8
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY16 Adopted FY26 Adopted
The escalation observed in Fiscal Year 2025 is attributable to the City's decision
to issue budgetary debt for both Fiscal Year 2024 and Fiscal Year 2025 within a
single fiscal period. This approach resulted in a significant increase in the
aggregate debt reported for Fiscal Year 2025.
Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation
Program. Through a new state program, the City is able to issue $28.25 million in
revenue bonds payable from the 5 percent State Sales Tax increment for projects in the
Bee Branch Watershed allowing the City to complete the Bee Branch Creek
Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete
North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water
Plant Flood Control and complete 17t" Street Storm Sewer over the next twenty years.
The ten year history of the City's use of the statutory debt limit is as follows:
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY24
FY25
FY26
86.54%
66.06%
59.79%
52.90%
46.91 %
43.51 %
43.33%
39.36%
40.07%
34.85%
33.50%
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Page 29 of 304
As we approach the preparation of the FY 2027-2031 Capital Improvement Program
(CIP) the challenge is not the City's capacity to borrow money but (a) how to identify,
limit, and prioritize projects which justify the interest payments and; (b) how to balance
high -priority projects against their impact on the property tax rate.
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 "AX 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.
F
Fiscal
Year
Reserve
(As .-
New
changeFund
Reason for from previous Fiscal Year
Moody's
General Fund
Calculation
FY 2021
40.72%
Increase due to American Rescue Plan Act funds received
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%
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 %1
funds.
18
Page 30 of 304
0
c
a�
U
a�
a-
Fund Reserve as a Percent of General Fund Revenue
55.82%
50 1 0 F
49.16% 51.
40
40.72% 40.53%
30 34.37% o
31.24% 27.00 /o
29.06% 27.000/27.00% 27.00%
20
10
FY FY FY FY FY FY FY FY FY FY FY FY
19 20 21 22 23 24 25 26 27 28 29 30
Fiscal Year
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 34.37% of general fund revenues as a percent of general
fund revenues computed by the accrual basis or 52.33% 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 $32,347,743. 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.
19
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General Fund Reserve Projections:
Year
F
FY2021
Co
$500,000
...Moody's
General Fund Cash
Reserve
$31,089,468
Projected
Revenue
40.72
New
MethodologyFiscal
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
$415 247
$38 147 743
40.53 %
52.33 %
FY2026
$1,823,234
$32,347,743
34.37 %
49.01 %
FY2027
$
$25 412 743
27.00 %
45.03 %
FY2028
$
$25 412 743
27.00 %
41.06 %
FY2029
$
$26,388,917
27.00 %1
37.08 OX
FY2030
1 $
1 $25 412 743
27.00 %1
35.65
Timeline of Public Input Opportunities
The Budget Office conducts year-round community outreach with Balancing Act using
print and digital marketing and presentations.
• 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
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.
20
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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 $31,940,934 (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 approve the resolution for the Fiscal
Year 2027 proposed property tax rate and dollars and approve the Fiscal Year 2027
Budget and Fiscal Policy Guidelines.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Laura Bendorf, Budget Manager
21
Page 33 of 304
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: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 4923, 2026
I am recommending approval of the resolution for the Fiscal Year 2027 proposed
property tax rate and dollars and the Fiscal Year 2027 Budget and Fiscal Policy
Guidelines as required by Section 384.15A of the Code of Iowa.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollars as proposed 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
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 $'W, .?954r 7.63281 instead of the maximum levy of $8.10.
Page 34 of 304
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 offset
with an increase in the Special Revenue levies. As this offset occurs each year, the
special revenue levies will reach their maximums removing this option.
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.
•Information on how to access the city's internet site, the city's statements, and
other budget documents for prior fiscal years.
2
Page 35 of 304
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 October 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. While the City of Dubuque will be issuing
new debt, 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 $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. The recommended improvement package
listing is attached.
3
Page 36 of 304
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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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
property tax increase for the average Dubuque homeowner.
FY 2026 Proposed % Change $ Change
FY2027
••- 1 1• RON= M.M. 11•• ''1 1
Property • • • • 1 • • • • • �� • •
Property Type
Propertie
Propertie•••
•
•
Change
• •
•
Residential:
$889.20
$915.87
$26.67
3.0 %
Av . vaIu e - $213.211
Commercial:
$716.01
$679.03
-$36.98
-5.2 %
$150,000 value & below
433
381
Commercial:
$2,074.61
$2,051.27
-$23.34
-1.1 %
$150,001-$300,000 value
232
225
Commercial:
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
147
167
Commercial:
$4,253.76
$5,023.81
$770.05
18.1 %
Avg. Value = $624,927
588
636
4
Page 37 of 304
Property
Propertie
Propertie..Property
Tax
Change
Change
Industrial:
$716.01
$679.03
-$36.98
-5.2 %
$150,000 value & below
8
8
Industrial:
$2,074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
11
9
Industrial:
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
4
3
Industrial:
$5,090.27
$6,000.54
$910.27
+17.9 %
Avg. Value = $731,693
58
58
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
FY 2027
Citv Tax Rate
$10.1648
% Chanqe in Tax Rate
3.00%
FY 2028
10.8757
4484%6.99%
FY 2029
11.0575
4- 85-Ok1.67%
FY 2030
11.2837
''�2.05%
FY 2031
11.5768
2.32%
FY
2026
PropertyFiscal "City"
$29,872,253
..ct on
Residential..
$ Impact on Avg.
FY
2027
$31.940,934
+6.93%
+3.00%
+ 33.38
FY
2028
34 833 948
+34.1--Ok9.06%
+a-.8 - 6.99
+ 4�&-.8664.06
FY
2029
36 122 257
+3.N-Ok3.70%
+1.850%1.67%
+ 16.38
FY
2030
37 597 016
+4.28%4.08%
+2 24e2.05
+ 24-.2-920.38
FY
2031
39 337 027
+4.-g" A.63
+2.32%
+ 23.59
5
Page 38 of 304
The recommended guideline is a 3.00% or $26.67 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.
Current recommendation is a 3% increase to the average homeowner, which generates
$2.1 million in additional property tax revenue over Fiscal Year 2026. Each 1 %
reduction is approximately $300,000 in property tax revenue.
Change in Avg. Increase
Residential
No Increase
in Tax Revenue
from
$1,144,004
1 % Increase
$1,453,605
2% Increase
$1,763,207
3% Increase
$2 068842 2 068 681
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.
6
Page 39 of 304
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
Dubuque has the LOWEST property tax rate as compared to the eleven largest cities in
the state. The highest rate (Waterloo (FY26)) is 114.38% higher than Dubuque's rate,
and the average is 53.12% higher than Dubuque. Dubuque's adopted FY 2027 property
tax is $10.16 (increase of 1.00% from FY 2026)
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.
$1.2 million for DroDerty tax relief with remainina $4.1 million sDlit between
$974,917 for non -recurring improvement packages, an internal loan to the
refuse collection fund for $675,554,and $2.4 millionfor
propertybudget in preparation for Property tax reform.$I--�����
reGernmended to be used for general tax relief
• . pertien ef the remaining$ .
paGkages the general fund. The balanGe will be reserved fer the FisGal
Year • •budget preGess as the Gity needs to be prepared for property
tax reform being Gensidered on the State legislative s...i.,
Page 40 of 304
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
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
8
Page 41 of 304
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.
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. All of DRA distributions were used in
operations in Fiscal Years 2024 through 2026.
4. Interest Revenue
9 Page 42 of 304
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. 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
10
Page 43 of 304
$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 to $2,778,351 in
FY 2027 based on calculated projections using historical averages and
Council approved advanced life support and basic life support service fees
to match the third -party cost report. 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).
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
11
Page 44 of 304
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 $2,675,126 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 $421,050 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
were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031 were
increased 5.38%. FY 2027 will include increased employee contribution effective
January 1, 2027.
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 ($114,293).
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
12
Page 45 of 304
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
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.
13
Page 46 of 304
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
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 2026 Debt
a. FY 2026 Debt Limit: The FY 2024 assessable value of the community for
calculating the statutory debt limit is $6,472,591,693, which at 5%,
indicates a total General Obligation debt capacity of $323,629,585, which
at 5%, indicates a total General Obligation debt capacity of $323,629,585.
14
Page 47 of 304
Based on Outstanding G.O. debt (including tax increment debt,
remaining payments on economic development TIF rebates, and
general fund lease agreement) on June 30, 2026 will be $108,410,164
(33.50% of the statutory debt limit) leaving an available debt capacity
of $215,219,421 (66.50%).
It should be noted that most of the City of Dubuque's outstanding debt is
not paid for with property taxes (except TIF), but is abated from other
revenues. Exceptions include one issuance for the replacement of a Fire
Pumper truck in the amount of $1,410,000 with debt service of $83,700 in
FY 2026 and one issuance for the franchise fee litigation settlement in the
amount of $2,800,000 with debt service of $145,000 in FY 2026. Included
in the debt is $4,661,120 of property tax rebates to businesses creating
and retaining jobs and investing in their businesses.
Statutory Debt Limit
Statutory Debt Limit Used
(as of June 30th)
100%9 ° 87 /o °
82% 7q% 79% �T
° 87% �II 72% 74%70%
75/0 = . �66%66%
60% 62%
53% II II T
50/o
° = 47%44%43/o o
25% _
36%36%34%33%32%31%31%33%30% 27 o /0 25% o
22 /020%
M T1 -1 M -n T M M -1 -9 -1 TI -1 -n -n
> > s N N N N N IV N N N N W W W W W W
U1 M v 00 CD O � N W A CT M V 00 CD a)" N W A Ln
FY16 Adopted FY26 Adopted
15
Page 48 of 304
The City also has debt that is not subject to the statutory debt limit. This debt
includes revenue bonds. Outstanding revenue bonds payable by water, sewer
and stormwater fees on June 30, 2026 will have a balance of $167,789,201. The
total City indebtedness as of June 30, 2026, is projected to be $289,568,909.
The total City indebtedness as of June 30, 2025, was $281,085,184. In FY 2026,
the City will have a projected $8,483,725 or 3.02% more in debt. The City is
using debt to accomplish necessary projects and to take advantage of the
attractive interest rates in the current market.
The following chart shows Dubuque's relative position pertaining to use of the
statutory debt limit for Fiscal Year 2026 compared to the other cities in Iowa for
Fiscal Year 2025 with a population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa
Cities
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
Percentage of Legal
Debt Limit Utilized
11
Des Moines(FY25)
4 7 7
573,230,000
.41 °
10
Cedar Rapids (FY25)
$ 767.559.335
$ 428.550.000
55.83 %
9
W. Des Moines FY25
551.6 692
307.0 000
55.67 °
Waterloo (FY2
267,626.798
$ 137,905,065
1. °
7
Sioux City FY25
$ 367,743,172
$ 146,935,000
39.96 %
6
Davenport (FY25)
$ 493,660,291
$ 176,195,000
35.69 %
5
I Dubu ue FY26
323,629,585
S 108.410.164
33.50 °
4
Ankeny(FY25)
$ 52 1
97,645,000
18.42 °
3
1 Ames (FY25)
$ 328.345.527
$ 56.710.000
17.27 %
2
Iowa City FY25
435,367,793
65,945,000
15.15 °
1
Council Bluffs (FY25)
$ 427.559.692
$ 61.320.000
14.34 %
Average w/o Dubuque
$ 205,152,507
36.33
16
Page 49 of 304
Percent of Legal Debt Limit Utilized
75%
50%
I
25° °
14.34%
15.15%
17.27%
18.4
o
0/°
T
J�G\O\J5
G°
Je O� Je
O J�JA a�e�Q O J�JA
O �\O
�e
P
55.67% « 00 59.41
51.53%
dl-A (�O0 �e5 \d5 e5
c'\o J� Q
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. The average of the other cities (36.33%) is
8.4% higher than Dubuque (33.50%).
$324
$297
$270
W
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 — FY26 Adopted
The escalation observed in Fiscal Year 2025 is attributable to the City's decision
to issue budgetary debt for both Fiscal Year 2024 and Fiscal Year 2025 within a
single fiscal period. This approach resulted in a significant increase in the
aggregate debt reported for Fiscal Year 2025.
17
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Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation
Program. Through a new state program, the City is able to issue $28.25 million in
revenue bonds payable from the 5 percent State Sales Tax increment for projects in the
Bee Branch Watershed allowing the City to complete the Bee Branch Creek
Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete
North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water
Plant Flood Control and complete 17t" Street Storm Sewer over the next twenty years.
The ten year history of the City's use of the statutory debt limit is as follows:
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY24
FY25
FY26
86.54%
66.06%
59.79%
52.90%
46.91 %
43.51 %
43.33%
39.36%
40.07%
34.85%
33.50%
18
Page 51 of 304
As we approach the preparation of the FY 2027-2031 Capital Improvement Program
(CIP) the challenge is not the City's capacity to borrow money but (a) how to identify,
limit, and prioritize projects which justify the interest payments and; (b) how to balance
high -priority projects against their impact on the property tax rate.
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 "AX 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.
F
Fiscal
Year
Reserve
(As .-
New
changeFund
Reason for from previous Fiscal Year
Moody's
General Fund
Calculation
FY 2021
40.72%
Increase due to American Rescue Plan Act funds received
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%
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 %1
funds.
19
Page 52 of 304
0
c
a�
U
a�
a-
Fund Reserve as a Percent of General Fund Revenue
55.82%
50 1 0 F
49.16% 51.
40
40.72% 40.53%
30 34.37% o
31.24% 27.00 /o
29.06% 27.000/27.00% 27.00%
20
10
FY FY FY FY FY FY FY FY FY FY FY FY
19 20 21 22 23 24 25 26 27 28 29 30
Fiscal Year
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 34.37% of general fund revenues as a percent of general
fund revenues computed by the accrual basis or 52.33% 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 $32,347,743. 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.
20
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21
Page 54 of 304
General Fund Reserve Projections:
Year
F
FY2021
Co
$500,000
...Moody's
General Fund Cash
Reserve
$31,089,468
Projected
Revenue
40.72
New
MethodologyFiscal
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
$415 247
$38 147 743
40.53 %
52.33 %
FY2026
$1,823,234
$32,347,743
34.37 %
49.01 %
FY2027
$
$25 412 743
27.00 %
45.03 %
FY2028
$
$25 412 743
27.00 %
41.06 %
FY2029
$
$26,388,917
27.00 %1
37.08 OX
FY2030
1 $
1 $25 412 743
27.00 %1
35.65
Timeline of Public Input Opportunities
The Budget Office conducts year-round community outreach with Balancing Act using
print and digital marketing and presentations.
• 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
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.
22
Page 55 of 304
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 $31,940,934 (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 approve the resolution for the Fiscal
Year 2027 proposed property tax rate and dollars and approve the Fiscal Year 2027
Budget and Fiscal Policy Guidelines.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Laura Bendorf, Budget Manager
23
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24
Page 57 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 1
CITY OF DU BUQU
BUDGET & FISCAL POLICY GUIDELINES
FISCAL YEAR 2027
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FY 2027 Budget & Fiscal Policy Guidelines
Page 2
Operatinq Budqet Guidelines
The Policy Guidelines are developed and adopted by City Council during the budgeting
process to provide targets or parameters within which the budget recommendation will
be formulated, in the context of the City Council Goals and Priorities established in
October 2025. The final budget presented by the City Manager may not meet all these
targets due to changing conditions and updated information during budget preparation.
To the extent the recommended budget varies from the guidelines, an explanation will
be provided in the printed budget document. By State law, the budget that begins July
1, 2026 must be adopted by April 30, 2026.
A. RESIDENT PARTICIPATION
GUIDELINE
To encourage resident participation in the budget process, City Council will hold
multiple special meetings in addition to the budget public hearing for the purpose of
reviewing the budget recommendations for each City department and requesting public
input following each departmental review.
The budget will be prepared in such a way as to maximize its understanding by
residents. Copies of the recommended budget documents will be accessed via the
following:
a. The City Clerk's office, located in City Hall (printed)
b. The government documents section at the Carnegie Stout Public Library
(printed)
c. On the City's website at www.citVofdubuque.org/budget (digital)
Opportunities are provided for resident input prior to formulation of the City Manager's
recommended budget and will be provided again prior to final Council adoption, both at
Timeline of Public Input Opportunities
The Budget Office conducts year-round community outreach with Balancing Act using
print and digital marketing and presentations.
• November: The City Manager hosted an evening public budget input meeting.
Page 59 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 3
Open Budget
dollarsandcents.cityofdubug ue.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.
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high -priority
budget input questions, and leave comments.
Taxpayer Receipt
During Fiscal Year 2019, the City launched an online application which allows users to
generate an estimate of how their tax dollars are spent. The tool uses data inputted by
the user such as income, age, taxable value of home, and percentage of goods
purchased within City limits. The resulting customized receipt demonstrates an estimate
of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other
city services. This tool is in support of the City Council goal of a financially responsible
and high-performance organization and addresses a Council -identified outcome of
providing opportunities for residents to engage in City governance and enhance
transparency of City decision -making.
B. SERVICE OBJECTIVES AND SERVICE LEVELS
GUIDELIN
The budget will identify specific objectives to be accomplished during the budget year,
July 1 through June 30, for each activity of the City government. The objectives serve
as a commitment to the citizens from the City Council and City organization and
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FY 2027 Budget & Fiscal Policy Guidelines
Page 4
C. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED
GUIDELIN
Two types of budget documents will be prepared for public dissemination. The
recommended City operating budget for Fiscal Year 2027 will consist of a
Recommended City Council Policy Budget that is a collection of information that has
been prepared for department hearings and a Residents Guide to the Recommended
FY 2027 Budget. These documents will be available on the Friday proceeding the
M....l. -4. 4-... n:i.. n.....--:I I- ry nf\n7 4-. -.i .A.-.L, A --:I n nnll/`
1. Recommended City Council Policy Budget The purpose of this documents is
to focus attention on policy decisions involving what services the City
government will provide, who will pay for them, and the implications of such
decisions. The document will emphasize objectives, accomplishments and
associated costs for the budget being recommended by the City Manager.
The Recommended City Council Policy Budget will include the following
information for each department:
• Highlights of prior year's accomplishments and Future Year's Initiatives
• A financial summary
• A summary of improvement packages requested and recommended
• significant line items
• Capital improvement projects in the current year and those recommended
over the next five years
• Organizational chart for larger departments and major goals, objectives
and performance measures for each cost center within that department
• Line item expense and revenue financial summaries.
2. The Residents Guide This section of the Recommended FY 2027 Budget will
be a supplementary composite of tables, financial summaries and explanations.
It will include the operating and capital budget transmittal messages and the
adopted City Council Budget Policy Guidelines. Through graphs, charts and
tables it presents financial summaries which provide an overview of the total
operating and capital budgets.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 5
D. ADOPT A BALANCED BUDGET
GUIDELINE
The City will adopt a balanced budget in which expenditures will not be allowed to
exceed reasonable estimated resources. The City will pay for all current expenditures
with current revenues
E. BALANCE BETWEEN SERVICES AND TAX BURDEN
GUIDELINE
The budget should reflect a balance between services provided and the burden of
paying taxes and/or fees for those services. It is not possible or desirable for the City to
provide all the services requested by individual residents. The City must consider the
ability of residents to pay for services in setting service levels and priorities.
F. MAINTENANCE EXISTING LEVEL OF SERVICE
To the extent possible with the financial resources available, the City should attempt to
maintain the existing level of services. As often as reasonably possible, each service
should be tested against the following questions:
a. Is this service truly necessary?
b. Should the City provide it?
c. What level of service should be provided?
d. Is there a better, less costly way to provide it?
e. What is its priority compared to other services?
f. What is the level of demand for the service?
g. Should this service be supported by property tax, user fees, or a combination?
G. IMPROVE PRODUCTIVITY
GUIDELINE
Continue efforts to stretch the value of each tax dollar and maximize the level of City
services purchased with tax dollars through continual improvements in efficiency and
effectiveness. Developing innovative and imaginative approaches for old tasks,
reducing duplication of service effort, creative application of new technologies, and
more effective organizational arrangements are approaches to this challenge.
H. USE OF VOLUNTEERS
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Page 6
DISCUSSION
To respect residents who must pay taxes, the City must seek to expand resources and
supplement service -delivery capacity by continuing to increase direct resident
involvement with service delivery. Residents are encouraged to assume tasks
previously performed or provided by City government. This may require the City to
change and expand the approach to service delivery by providing organizational skills
and training and coordinating staff, office space, meeting space, equipment, supplies
and materials rather than directly providing more expensive full-time City staff. Activities
in which residents can continue to take an active role include: Library, Recreation,
Parks, Five Flags Center, and Police.
GUIDELINE
Future maintenance of City service levels may depend partially or largely on volunteer
resident staffs. Efforts shall continue to identify and implement areas of City government
where (a) volunteers can be utilized to supplement City employees to maintain service
levels (i.e., Library, Recreation, Parks, Police) or (b) service delivery can be adopted by
to non -government groups and sponsors -- usually with some corresponding financial
support.
I. RESTRICTIONS ON INITIATING NEW SERVICE
GUIDELINE
New service shall only be considered: (a) when additional revenue or offsetting
reduction in expenditures is proposed; or (b) when mandated by state or federal law.
J. SALARY INCREASES OVER THE AMOUNT BUDGETED SHALL
BE FINANCED FROM BUDGET REDUCTIONS IN THE
DEPARTMENT(S) OF THE BENEFITING EMPLOYEES
DISCUSSION
The recommended budget includes salary amounts for all City employees. However,
experience shows that budgeted amounts are often exceeded by fact finder and/or
arbitrator awards. Such "neutrals" do not consider the overall financial capabilities and
needs of the community and the fact that the budget is carefully balanced and fragile.
Such awards have caused overdrawn budgets, deferral of necessary budgeted
expenditures, expenditure of working balances and reserves, and have generally
reduced the financial condition or health of the City government. To protect the financial
integrity of the City government, it is recommended the cost of any salary adjustment
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FY 2027 Budget & Fiscal Policy Guidelines
Page 7
over the amount financed in the budget is paid for by reductions in the budget of the
department(s) of the benefiting employees.
The City has five collective bargaining agreements. The current contracts expire as
follows:
.. inina Unit
Teamsters Local Union No. 120
Contract Exnires
June 30, 2030
Teamsters Local Union No. 120 Bus Operators
June 30, 2030
Dubuque Professional Firefighters Association
June 30, 2027
Dubuque Police Protective Association
June 30, 2029
International Union of Operating Engineers
June 30, 2029
GUIDELINF_
Salary increases over the amount budgeted for salaries shall be financed from
operating budget reductions in the department(s) of the benefiting employees.
K. THE AFFORDABLE CARE ACT
GUIDELINE
The Affordable Care Act is a health care law that aims to improve the current health
care system by increasing access to health coverage for Americans and introducing
new protections for people who have health insurance. The Affordable Care Act (ACA)
was signed into law on March 23, 2010. Under the ACA, employers with more than 50
full-time equivalent employees must provide affordable "minimum essential coverage" to
full-time equivalent employees. The definition of a full-time equivalent employee under
the Affordable Care Act is any employee that works 30 hours per week or more on
average over a twelve-month period (1,660 hours or more). There is a twelve-month
monitoring period for part-time employees. If a part-time employee meets or exceeds 30
hours per week on average during that twelve-month period, the City must provide
health insurance. On July 2, 2013, the Treasury Department announced that it
postponed the employer shared responsibility mandate for one year. Based on the initial
requirements of the Affordable Health Care Act, the Fiscal Year 2014 budget provided
for insurance coverage effective February 1, 2014 for several part-time employees. In
addition, the Fiscal Year 2014 budget provided for making several part- time positions
full-time on June 1, 2014. Due to the delay of the employer shared responsibility
mandate for the Affordable Health Care Act, the City delayed providing insurance
coverage for eligible part-time employees and delayed making eligible part- time
positions full-time until January 1, 2015.The Standard Measurement Period was
delayed from January 1, 2013 through December 31, 2013 to December 1, 2013
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FY 2027 Budget & Fiscal Policy Guidelines
Page 8
through November 30, 2014 with the first provision of health insurance date being
January 1, 2015.
The impact of the Affordable Care Act on the City of Dubuque included changing nine
part-time positions to full-time (Bus Operators (4), Police Clerk Typist (1), Building
Services Custodians (3), and Finance Cashier (1) in Fiscal Year 2016. In addition, nine
part-time positions were offered health insurance benefits due to working more
than1,560 hours (Bus Operators (4), Golf Professional, Assistant Golf Professional, Golf
Maintenance Worker, Parks Maintenance Worker, and Water Meter Service Worker).
The number of these part-time positions with health insurance benefits has been
reduced as employees in these positions accept other positions or leave employment
with the City of Dubuque. As of March 17, 2026, there are no part-time positions with
health insurance benefits that remains.
BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES
GUIDELINE
The provision of City services in the most economical and effective manner requires a
balance between capital (with emphasis upon replacement of equipment and capital
projects involving maintenance and reconstruction) and operating expenditures. This
balance should be reflected in the budget each year.
L. USER CHARGES
User charges or fees represent a significant portion of the income generated to support
the operating budget. It is the policy that user charges or fees be established when
possible so those who benefit from a service or activity also help pay for it. Municipal
utility funds have been established for certain activities, which are intended to be self-
supporting Enterprise Funds. Examples of utility funds operating as Enterprise Funds
include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection
Fund, and Parking Fund. In other cases, a user charge is established after the City
Council determines the extent to which an activity must be self-supporting. Examples of
this arrangement are fees for swimming, golf, recreation programs, and certain
inspection programs such as rental inspections and building permits.
The Stormwater User Fund is fully funded by stormwater use fees. The General Fund will
continue to provide funding for the stormwater fee subsidies which provide a 50% subsidy
for the stormwater fee charged to property tax exempt properties and low -to- moderate
income residents and a 75% subsidy for residential farms. The General Fund will also
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FY 2027 Budget & Fiscal Policy Guidelines
Page 9
continue to provide funding for the refuse, water, and sanitary sewer fee subsidies which
provide a 50% subsidy for the fees charged to low -to -moderate income residents.
GUIDELINE
User fees and charges should be established where possible so that those who utilize
or directly benefit from a service, activity or facility also help pay for it.
User fees and charges for each utility enterprise fund (Water User Fund, Sewer User
Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set
at a level that fully supports the total direct and indirect cost of the activity, including the
cost of annual depreciation of capital assets, the administrative overhead to support the
system and financing for future capital improvement projects.
Activity
FY 2024 Actual
Percent Self-Supportinq
FY 2025 Actual
FY 2026 Adopted
FY 2027 Rec'd
Adult Athletics
77.2%
84.3%
61.7%
59.0%
McAleece Concessions
114.5%
116.6%
115.3%
117.0%
Youth Sports
17.4%
16.8%
12.2%
16.3%
Therapeutic & After School
56.2%
12.8%
17.6%
21.1 %
Recreation Classes
100.2%
64.6%
66.2%
39.0%
Swimming
41.6%
44.1 %
40.0%
39.3%
Golf
107.9%
113.0%
94.5%
106.6%
Port of Dubuque Marina
75.5%
85.6%
81.2%
85.1 %
Park Division
17.5%
13.3%
17.2%
15.1 %
Library
1.2%
1.2%
1.1 %
1.0%
Airport
106.7%
88.2%
97.6%
97.6%
Building Inspections
106.7%
120.7%
96.5%
96.0%
Planning Services
62.7%
70.7%
45.2%
71.5%
Health Food/Environmental
Inspections
37.5%
48.8%
38.3%
41.8%
Animal Control
58.5%
57.8%
51.7%
51.9%
Housing - General Inspection
95.6%
1 143.7%
107.6%
90.7%
Federal Building Maintenance
62.2%
1 83.2%
86.2%
85.7%
M. ADMINISTRATIVE OVERHEAD RECHARGES
DISCUSSION
While the Enterprise Funds have contributed to administrative overhead, the majority
has been provided by the General Fund. This is not reasonable and unduly impacts
property taxes, which causes a subsidy to the Enterprise Funds. Prior to FY 2013, the
administrative overhead was charged by computing the operating expense budget for
each enterprise fund and dividing the result by the total City-wide operating expense
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FY 2027 Budget & Fiscal Policy Guidelines
Page 10
budget which resulted in the following percentages of administrative overhead charged
to each enterprise fund: Water 5.32%; Sanitary Sewer 4.84%; Stormwater 0.55%; Solid
Waste 2.83%; Parking 1.71 %; and Landfill 2.71 %. The adopted Fiscal Year 2013
budget changed the administrative overhead to be more evenly split between the
general fund and enterprise funds and is phased in over many years.
The Fiscal Year 2018 administrative overhead formula was recommended modified.
The modification removed Neighborhood Development, Economic Development and
Workforce Development from all recharges to utility funds. In addition, the Landfill
calculation is modified to remove Geographic Information Systems and Planning
Services. The Fiscal Year 2027 administrative overhead formula is recommended to be
modified to include the Landfill in Communication Department recharges.
In Fiscal Year 2027, the general fund is recommended to support $2,715,875 in
administrative overhead using the recharge method adopted in Fiscal Year 2013 and
revised in Fiscal Year 2018.
C;I IInFI INF
Beginning in FY 2013, additional overhead recharges to the utility funds is being phased
in over several years. Engineering administrative and project management expenses
that are not recharged to capital projects will be split evenly between the Water, Sewer,
Stormwater and General Funds. Finance accounting expenses and all other
administrative departments such as Planning, City Clerk, Legal Services and City
Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse
Collection and General Funds, with overhead costs being shared by the Landfill and
Parking. This will be fully implemented over time.
Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development
and Workforce Development expenses will not be recharged to utility funds. In addition,
the Landfill will not be recharged GIS and Planning expenses. In Fiscal Year 2027, the
Communications Department is also recharged to the Landfill.
When the overhead recharges are fully implemented, the split of the cost of
administrative overhead excluding Engineering will be as follows:
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FY 2027 Budget & Fiscal Policy Guidelines
Page 11
Administrative Overhead Split
(Not including Engineering)
■ Water
■ Sewer
Stormwafer
■ Refuse
■ Parking
■ Landfill
■General Fund
Engineering Administration &
Project Management
■ Gen era I
Fund
• Water
Sewer
■ Stormwater
0
The implementation percent of the administrative overhead recharges in Fiscal Year
2027 as compared to Fiscal Year 2026 is as follows:
100%
75%
50%
25%
—%
Percent Implemented Administrative Overhead
100% 100% 100% 100% 9-7 100%
E
Cm
I J
I
In
M_ a I
FY27
0
99%
0
FY26
Sanitary Sewer Stormwater Water
Refuse Parking Landfill
N. OUTSIDE FUNDING
DISCUSSION
The purpose of this guideline is to establish the policy that the City should aggressively
pursue outside funding to assist in financing its operating and capital budgets.
However, the long-term commitments required for such funding must be carefully
evaluated before any agreements are made. Commitments to assume an ongoing
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FY 2027 Budget & Fiscal Policy Guidelines
Page 12
increased level of service or level of funding once the outside funding ends must be
minimized.
OUIUCLINt
To minimize the property tax burden, the City of Dubuque will make every effort to
obtain federal, state and private funding to assist in financing its operating and capital
budgets. However, commitments to guarantee a level of service or level of funding after
the outside funding ends shall be minimized. Also, any matching funds required for
capital grants will be identified.
O. GENERAL FUND OPERATING RESERVE (WORKING BALANCE)
ni.qr.i i.q.qir
An operating reserve or working balance is an amount of cash, which must be carried
into a fiscal year to pay operating costs until tax money, or other anticipated revenue
comes in. Without a working balance, there would not be sufficient cash in the fund to
meet its obligations and money would have to be borrowed. Working balances are not
available for funding a budget; they are required for cash flow (i.e., to be able to pay
bills before taxes are collected).
Moody's Investor Service recommends a factor of 35 percent for "AX rated cities. In
January 2025, Moody's Investor Services affirmed the Aa2 credit rating on general
obligation bonds. Moody's credit analysis states, "the City of Dubuque's local economy
benefits from its role as a regional economic center, with solid resident income and full
value per capita. Financial operations are strong and will remain so despite declines in
fund balance over the next few years, as it expends funds from the pandemic. Long-
term liabilities and fixed cost ratios are moderate and will remain so despite future
borrowing needs." According to Moody's, the Aa2 issuer rating for the City of Dubuque's
bonds reflects the city's healthy economic base, which serves as a regional economic
center. Other rationale stated for the rating include full value per capita and adjusted
resident income are solid at around $109,000 and 98% respectively, though weaker
than Aa peers, in part because of a large student population, available fund balance
was strong at around 60% of revenue at the close of fiscal 2023 (year-end June 30),
and cash was stronger at 85% of revenue. The City's available fund balance will likely
remain well over 45%, despite some planned draws in fiscal 2024 and fiscal 2025 to
spend down federal funds from the pandemic. Despite the state adopting new property
tax restrictions, revenue raising flexibility remains strong because the City maintains
significant margin in its employee benefits fund and is not utilizing its emergency levy.
The long-term liabilities ratio will likely remain well under 300% inclusive of the current
issuances and future borrowing plans, and fixed -costs ratio will remain well below 20%.
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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.
In November of 2022, Moody's Investors Service ("Moodys") released a new rating
methodology for cities and counties. Two significant changes result from the new
methodology; cities are now assigned an issuer rating meant to convey the
creditworthiness of the issuer as a whole without regard to a specific borrowing, and
business -type enterprise funds are now being considered together with general fund
revenues and balances in the determination of financial performance.
Under the new methodology, there are two metrics that contribute to financial
performance. Available Fund Balance Ratio ("AFBR") = (Available Fund Balance + Net
Current Assets/Revenue) and Liquidity Ratio ("LR") = (Unrestricted Cash/Revenue). For
Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in
connection to its annual issuance of bonds. At that time, Moody's calculated the City's
AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations
were likely elevated due to unspent ARPA funds. The change in methodology will now
consider revenues and net assets from business -type activities in these calculations. As
such, the City's general obligation rating will now be directly impacted by the financial
performance of enterprise funds. Establishing rates and charges adequate to provide
both debt service coverage and significant liquidity will be necessary to maintain the
City's ratings.
In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's
outstanding revenue bonds from 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.
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Fiscal
Fund Reserve
Year
(As % of General
Fiind rPvPniiP4z1
Moody
rAlrilintinn
Rt
Increase due to American Rescue Plan Act funds
FY 2021
40.72%
received ($13.2 million), frozen positions and
Increase due to American Rescue Plan Act funds
received ($13.2 million), capital projects not
FY 2022
49.16%
45.09%
expended before the end of the FY, and vacant
Increase due to American Rescue Plan Act funds
not spent ($26.4 million), capital projects not
FY 2023
55.82%
62.99 %
expended before the end of the FY, and vacant
FY 2024
51.19%
62.41 %
Decrease due to spend down of American Rescue
Plan Act funds.
FY 2025
43.07%
58.14 %1
Decrease due to spend down of American Rescue
Plan Act funds.
The City of Dubuque has historically adopted a general fund reserve policy as part of
the Fiscal and Budget Policy Guidelines which are adopted each year as part of the
budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve
Policy. Per the policy for the General Fund, the City will maintain a minimum fund
balance of at least 20 percent of the sum of (a) annual operating expenditures not
including interfund transfers in the General Fund less (b) the amounts levied in the Trust
and Agency fund and the Tort Liability Fund ("Net General Fund Operating Cost"). The
City may increase the minimum fund balance by a portion of any operating surplus
above the carryover balance of $200,000 that remains in the General Fund at the close
of each fiscal year. The City continued to add to the General Fund minimum balance
when additional funds were available until 20 percent of Net General Fund Operating
Cost was reached in Fiscal Year 2017. During Fiscal Year 2024, the General Fund
minimum balance was increased to 25 percent.
After all planned expenditures in FY 2026, the City of Dubuque will have a general fund
reserve of 34.37% of general fund revenues as a percent of general fund revenues
computed by the accrual basis or 49.01 % 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 $32,347,743. 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.
GUIDELINE
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The guideline of the City of Dubuque is to maintain a General Fund working balance or
operating reserve of 25% (27% to maintain a margin of error of 2%) in FY 2026 and
beyond. In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2023. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has sustained a
greater than 20% reserve.
General Fund Reserve Projections:
Fiscal Year
FY2021
Contribution
Ak
$500,000
Spendable
General Fund Cash
Reserve
31 089 468
% of
Projected
Revenue =
40.72
Moody's New
MethodologyCity's
—
FY2 222
$
$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
$415 247
$38 147 743
40.53 %
52.33 %
FY2026
$1 823 234
$32 347 743
34.37 %
49.01 %
FY2027
$
$25,412,743
27.00 %
45.03 %
FY2028
$
$25 412 743
27.00 %
41.06 %
FY2029
26 388 917
27.00 %
37.08 %
FY2030
$
$25 412 743
27.00 %1
35.65 %
* Capital projects and large equipment purchases that are not completed in the
year budgeted will temporarily increase the amount of fund balance remaining at the
end of the fiscal year. After resources are allocated to the next fiscal year to complete
unfinished capital projects and equipment purchases, any amount of general fund
reserve balance over 27% creates resources for additional capital projects or
other mid -year expenses.
P. STATE LEGISLATIVE ANTICIPATION RESERVE FUND
DISCUSSIC
The State Legislative Anticipation Reserve Fund is a new fund and is being
established in Fiscal Year 2027 using $2.4 million generated from the repayment
of internal loans to the City's General Fund from the Greater Downtown TIF
(GDTIF) Fund.
This reserve is being created in recognition of the significant property tax reform
proposals being considered during the current State legislative session. Because these
reforms could materially affect the City's future revenue structure, it is financially
prudent to maintain an additional reserve to help absorb any potential impacts.
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Retaining this balance through the FY 2028 budget cycle ensures the City can respond
responsibly should legislative changes reduce or otherwise alter revenues.
The actual total repayment was $5.3 million with $1.2 million for property tax relief and
recurring improvement packages, $974,917 used to fund non -recurring General Fund
improvement requests and to make a $675,554 internal loan to the Refuse Collection
enterprise fund.
If the City Council elects to use any portion of the State Legislative Anticipation Reserve
Fund before FY 2028, such use must be limited strictly to non -recurring expenses. This
preserves the integrity of the reserve by ensuring one-time funds are not used to
support ongoing operational costs, maintaining long-term fiscal sustainability.
GuIULLINrz
The guideline of the City of Dubuque is to maintain a State Legislative Anticipation
Reserve Fund through Fiscal Year 2028. The reserve balance is funded with one-time
revenue from the repayment of internal loans to the General Fund from the GDTIF Fund
in the amount of $4.1 million.
Q. USE OF UNANTICIPATED, UNOBLIGATED, NONRECURRING
INCOME
DISCUSSION
Occasionally, the City receives income that was not anticipated and was not budgeted.
Often, this money is non -recurring and reflects a one-time occurrence which generated
the unanticipated increase in income.
Non -recurring income generally will not be spent on recurring expenses. This would
result in a funding shortfall in the following budget year before even starting budget
preparation. However, eligible non -recurring expenditures would include capital
improvements and equipment purchases.
GUIDELINr-
Nonrecurring unobligated income shall generally only be spent for nonrecurring
expenses. Capital improvement projects and major equipment purchases tend to be
nonrecurring expenditures.
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USE OF "UNENCUMBERED FUND BALANCES"
DISCUSSION
Historically, 100% of a budget is not spent by the end of the fiscal year and a small
unencumbered balance remains on June 30th. In addition, income sometimes exceeds
revenue estimates or there are cost savings resulting in some unanticipated balances at
the end of the year. These amounts of unobligated, year-end balances are "carried
over" into the new fiscal year to help finance it.
The FY 2026 General Fund budget, which went into effect July 1, 2025, anticipated a
"carryover balance" of $200,000 or approximately 0.7 percent of the City tax asking. For
multi -year budget planning purposes, these guidelines assume a carryover balance of
$200,000 in FY 2027 through FY 2031.
GUIDELINE
Carryover General Fund balance shall generally be used to help finance the next fiscal
year budget and reduce the demand for increased taxation. The available carryover
General Fund balance shall be anticipated not to exceed $200,000 for FY 2027 and
beyond through the budget planning period. Any amount over that shall usually be
programmed in the next budget cycle as part of the capital improvement budgeting
process.
T. PROPERTY TAX DISCUSSION
I. ASSUMPTIONS - RESOURCES
1. Local, Federal and State Resources
a. Cash Balance. Unencumbered funds or cash balances of $200,000 will be available
in FY 2027 and each succeeding year to support the operating budget.
b. Interest Revenue. Interest revenue decreased 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.
b. Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the
General Fund for property tax relief in FY 2027. 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, and then increase at
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an annual rate of 2.00% percent per year beginning in FY 2028. The following chart
shows the past four years of actual sales tax funds and projected FY 2027 for the
General Fund:
Funds �r
Q4
FY2023 JLFY2024
$ 475,037
JLFY2025
$ 451,920
$
574,416
FY 2026 JM
$ 635,746
20
$ 654,818
Quarter 1
$ 1,177,196
$ 1,545,777
$
1,592,834
$ 1,610,911
$ 1,659,238
Quarter 2
$ 1,522,885
$ 1,596,421
$
1,605,397
$ 1,142,148
$ 1,176,413
Quarter 3
$ 1,443,097
$ 1,524,508
$
1,490,640
$ 1,624,797
$ 1,673,541
Quarter 4
$ 1,110,593
$ 979,209
$
969,694
$ 1,061,815
$ 1,093,669
Reconciliation
$ 371,388
$ —
$
—
$ —
$ —
Total
$ 6,100,196
$ 6,097,835
$
6,232,981
$ 6,075,417
$ 6,257,679
Change
-4.00%
-0.04%
+2.22%
-2.53%
+3.00%
c. Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 5.00%
($167,843) over FY 2026 re -estimated receipts of $3,356,856, and then increase at an
annual rate of 3.00% per year.
d. FTA Revenue. Federal Transportation Administration (FTA) transit operating
assistance decreased from $598,167 in FY 2026 to $443,500 in FY 2027. The FY 2027
budget is based on the revised FY 2026 budget received from the FTA. Federal
operating assistance is based on a comparison of larger cities. Previously the allocation
was based on population and population density.
e. Ambulance Revenue. 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.
Ambulance Fees increased from $1,756,870 in FY 2026 to $2,778,351 in FY 2027
based on calculated projections using historical averages and Council approved
advanced life support and basic life support service fees to match the third -party cost
report. The FY 2025 actual was $2,026,670.
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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.
f. Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth
per year over budgeted FY 2026.
g. Building Fee Revenue. Building fees (Building Permits, Electrical Permits,
Mechanical Permits and Plumbing Permits) are anticipated to increase $56,927 from
$1,099,857 in FY 2026 to $1,156,784 in FY 2027.
h. DRA Revenue.
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.
The following is a ten-year history of DRA lease payments to the City of Dubuque:
FY 2027 Projected
$7,079,186
$127,716
1.8%
FY 2026 Revised
$6,951,470
-$261,892
-3.6%
FY 2026 Budget
$7,213,362
$349,629
5.1 %
FY 2025 Actual
$6,863,733
$589,707
9.4%
FY 2024 Actual
$6,274,026
-$917,449
-12.8%
FY 2023 Actual
$7,191,475
$583,944
8.8%
FY 2022 Actual
$6,607,531
$2,645,535
66.8%
FY 2021 Actual
$3,961,996
-$1,187,192
-23.1 %
FY 2020 Actual
$5,149,188
$293,177
6.0%
FY 2019 Actual
$4,856,011
$18,879
0.4%
FY 2018 Actual
$4,837,132
-$195,083
-3.9%
FY 2017 Actual
$5,032,215
-$155,297
-3.0%
FY 2016 Actual
$5,187,512
-$158,104
-3.0%
The Diamond Jo payment related to the revised parking agreement increased from
$687,003 in FY 2026 to $731,657 in 2027 based on estimated Consumer Price Index
adjustment.
i. DRA Gaming.
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The split of gaming revenues from taxes and the DRA lease (not distributions) in FY
2027 remains at a split of 100% operating and 0% capital. When practical in future
years, additional revenues will be moved to the capital budget from the operating
budget.
The following shows the annual split of gaming taxes and rents between operating and
capital budgets from FY2022— FY2027:
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Split of Gaming Tax + Revenue Between Operating & Capital Budgets
0%
0%
0%
0%
0%
0%
% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%
Operating Capital
j. Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2027) and the
Diamond Jo parking privileges ($731,657 in FY 2027) have not been included in the
split with gaming revenues. This revenue is allocated to the operating budget.
2. Property Taxes
k. Residential Rollback. The residential rollback factor will decrease from 47.4316% in
2026 to 44.5345% or a 6.11 % decrease in FY 2027. The rollback has been estimated to
remain the same from Fiscal Years 2028 through 2031.
The percent of growth from revaluation is to be the same for agricultural and residential
property; therefore, if one of these classes has less than 3% growth for a year, the other
class is limited to the same percent of growth. A balance is maintained between the two
classes by ensuring that they increase from revaluation at the same rate. In FY 2027,
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residential property had more growth than agricultural property which caused the
rollback factor to decrease.
Residential property was revalued by the City Assessor by neighborhood for the
January 1, 2025 property assessments, which impacts the Fiscal Year 2027 budget.
The average residential property value increased 8.50%. This revaluation of residential
property resulted in the taxable value for the average homeowner calculation to
increase from $93,207 to $94,952 (+1.87%).
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. In an effort to keep property taxes low to the average
homeowner, the City calculates the property tax impact to the average residential
property based on the residential rollback factor and property tax rate. In a year that the
residential rollback factor increases, the City recommends a lower property tax rate than
what would be recommended had the rollback factor remained the same.
The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to
44.5345 percent in Fiscal Year 2027. The rollback percent had steadily decreased since
FY 1987, which has resulted in less taxable value and an increase in the City's tax rate.
However, that trend began reversing in FY 2009 when the rollback reached a low of
44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2026, the City's
tax rate would have been $6.18 per $1,000 of assessed value instead of $10.06 in FY
2026.
I. State Equalization Order/Property Tax Reform. There was not an equalization
order for commercial, industrial or multi -residential property in Fiscal Year 2027. The
Iowa Department of Revenue is responsible for "equalizing" assessments every two
years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide
basis.
Commercial property was revalued by the City Assessor for the January 1, 2025
property assessments, which impacts the Fiscal Year 2027 budget. The average
commercial and industrial property values increased 16%. This revaluation of
commercial property resulted in the taxable value for the average commercial
calculation to increase from $540,594 to $624,927 (+16%). This revaluation of industrial
property resulted in the taxable value for the average industrial calculation to increase
from $632,952 to $731,693 (+16%).
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Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed
value; however due to legislative changes in FY 2013, a 95% rollback factor was
applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond.
The State of Iowa backfilled the loss in property tax revenue from the rollback 100% in
FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018
and beyond. The FY 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).
Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill
provides that beginning with the FY 2023 payment, the General Fund standing
appropriation for commercial and industrial property tax replacement for cities and
counties will be phased out in four or seven years, depending on how the tax base of
the city or county grew relative to the rest of the state since FY 2014. Cities and
counties where the tax base grew at a faster rate than the statewide average from FY
2014 through FY 2021 will have the backfill phased out over a four-year period from FY
2023 to FY 2026, while those that grew at a rate less than the statewide average will
have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The
City of Dubuque's tax base grew at a rate less than the statewide average and will have
a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in
FY 2023, the backfill will be eliminated over a eight year period.
The projected reduction of State backfill revenue to only the general fund is as follows:
2027
-$97,981
2028
-$97,981
2029
-$97,981
2030
-$97,981
Total
-$391,924
Business Property Tax Credit Law Changes and Implementation of Two -Tier
Assessment Limitations
From FY 2015 through FY 2023, commercial, industrial and railroad properties were
eligible for a Business Property Tax Credit. The Business Property Tax Credit was
deducted from the property taxes owed and the credit was funded by the State of Iowa.
The average commercial and industrial properties ($432,475 Commercial / $599,500
Industrial) received a Business Property Tax Credit from the State of Iowa for the City
share of their property taxes of $148 in FY 2015, $693 in FY 2016, $982 in FY 2017,
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$959 in FY 2018, $843 in FY 2019, $861 in FY 2020, $779 in FY 2021, $780 in FY
2022, and $722 in FY 2023.
House File 2552, Division 11 passed in the 2022 legislative session and signed by the
Governor on May 2, 2022 repeals the Business Property Tax Credit (BPTC). In lieu of
the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad
properties will receive a property assessment limitation on the first $150,000 of value of
the property unit equal to the assessment limitation for residential property. The value of
the property unit that exceeds $150,000 receives the same ninety percent assessment
limitation it has in the past.
The $125 million fund will continue to be appropriated each year for reimbursements to
counties. County auditors will file a claim for the first tier of the assessment limitations in
September. Assessors will continue to provide the unit configuration for auditors as
these definitions remained the same. Taxpayers are not required to file an application to
receive the first $150,000 of assessed value at the residential assessment limitation
rate.
If the total for all claims is more than the appropriated amounts, the claims will be
prorated and the Iowa Department of Revenue will notify the county auditors of prorated
percentage by September 301h. 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 first -tier assessment limitation in FY27
is estimated to be $170,000.
m. Multi -Residential Property Class/Eliminated State Shared Revenue.
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi -residential, which requires a rollback, or
assessment limitations order, on multi -residential property which will eventually equal
the residential rollback. Multi -residential property includes apartments with 3 or more
units. Rental properties of 2 units were already classified as residential property.
The State of Iowa did not backfill property tax loss from the rollback on multi -residential
property. The rollback occurred as follows:
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This annual loss in tax revenue of $1,186,077 from multi -residential property was
not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the
City lost $5,625,661 in total, meaning landlords paid that much less in property taxes.
The state did not require landlords to charge lower rents or to make additional
investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class, so the City continues to lose these
revenues.
State Shared Revenue Eliminations
In addition, the State of Iowa eliminated the:
a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000)
b. Personal Property Tax Replacement in FY 2004 (-$350,000)
c. Municipal Assistance in FY 2004 (-$300,000)
d. Liquor Sales Revenue in FY 2004 (-$250,000)
e. Bank Franchise Tax in FY 2005 (-$145,000)
f. Alcohol License Revenue in FY 2023 (-$85,000)
The combination of the decreased residential rollback, State funding cuts and increased
expenses has forced the City's tax rate to increase since 1987 when the residents
passed a referendum to establish a one percent local option sales tax with 50% of the
revenue going to property tax relief.
n. Taxable Value. FY 2027 will reflect the following impacts of taxable values of various
property types:
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Property Tvoe
Percent Chanae in Taxable Value
*Overall taxable value increased 5.89% percent after deducting Tax Increment
Financing values
Assessed valuations were increased 2 percent per year beyond FY 2027.
o. Greater Downtown Tax Increment Financing
• 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. $1.2 million of
the repayment is recommended to be used for general property tax relief and
recurring improvement packages in the general fundin 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. $675,554 will be used as an internal loan to the Refuse Collection
enterprise 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.
• 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.
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p. Riverfront Property Lease Revenue. 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.
3. Fees, Tax Rates & Services
q. Franchise Fees. 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%. The franchise fee revenues are projected to increase at an
annual rate of 4 percent per year from FY 2028 through FY 2031.
The City provides franchise fee rebates to gas and electric customers who are exempt
from State of Iowa sales tax. Franchise fee rebates are provided at the same exemption
percent as the State of Iowa sales tax exemption indicated on the individual gas and or
electric bill. To receive a franchise fee rebate, a rebate request form must be completed
by the customer, the gas and/or electric bill must be attached, and requests for rebates
for franchise fees must be submitted during the fiscal year in which the franchise fees
were paid except for June.
The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal
maximum, on June 1, 2015.
r. Property Tax Rate. For purposes of budget projections only, it is assumed that City
property taxes will continue to increase at a rate necessary to meet additional
requirements over resources beyond FY 2027.
s. Police & Fire Protection. FY 2027 reflects the fifteenth year that payment in lieu of
taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection.
In FY 2027, the Sanitary Sewer fund is charged 0.43% of building value and the Water
fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire
Protection. This revenue is reflected in the General Fund and is used for general
property tax relief.
II. ASSUMPTIONS — REQUIREMENTS
a. Pension Systems.
• The Municipal Fire and Police Retirement System of Iowa (MFPRSI) Board of
Trustees City contribution for Police and Fire retirement 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 savings of $151,840).
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• The Iowa Public Employee Retirement System (IPERS) City contribution is
unchanged from the FY 2026 contribution rate of 9.44% (no general fund
impact). The IPERS employee contribution is unchanged from the FY 2026
contribution rate of 6.29% (which does not affect the City's portion of the budget).
The IPERS rate is anticipated to increase 1 percent each succeeding year.
b. Collective Bargaining and Non -Represented. The already approved collective
bargaining agreements for Dubuque Professional Fire Fighters Association 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 $2,675,126 to the General Fund.
c. 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 $421,050 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
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Page 28
5.36%; FY 2029 were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031
were increased 5.38%. Effective January 1, 2027, employee contributions will increase.
d. Five -Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible
retirees with at least twenty years of continuous service in a full-time position or
employees who retired as a result of a disability and are eligible for pension payments
from the pension system can receive payment of their sick leave balance with a
maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick
leave payout expense budget in the General Fund in FY 2026 was $288,742 as
compared to FY 2027 of $228,836, based on qualifying employees officially giving
notice of retirement.
e. 50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap
can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick
leave payout expense budget in the General Fund in FY 2026 was $128,496 as
compared to FY 2027 of $141,764, based on FY 2026 year-to-date expense.
f. Parental Leave. Effective March 8, 2019, employees may use Parental leave to take
paid time away from work for the birth or the adoption of a child under 18 years old.
Eligible employees receive their regular base pay (plus longevity) and benefits for
twelve weeks following the date of birth, adoption event or foster -to -adopt placement. If
both parents are eligible employees, each receive the leave benefit. There is no
parental leave expense budgeted in the General Fund based on departments covering
parental leave with existing employees and not incurring additional cost for temporary
help.
f. Supplies & Services. General operating supplies and services are estimated to
increase 2% over actual in FY 2025. A 2% increase is estimated in succeeding years.
g. Electricity. Electrical energy expense is estimated to increase 4% over FY 2025
actual expense, then 2% per year beyond.
h. Natural Gas. Natural gas expense is based on FY 2025 actual then 2% per year
beyond.
i. Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will
continue at 50% of actual hotel/motel tax receipts.
j. Equipment & Machinery. Equipment costs for FY 2027 are estimated to decrease
14.60% under FY 2026 budget based on equipment replacement schedules, then
remain constant per year beyond.
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k. Debt Service. Debt service is estimated based on the tax -supported, unabated
General Obligation bond sale for fire truck and franchise fee litigation settlement.
I. Unemployment. Unemployment expense in the General Fund decreased from
$23,824 in FY 2026 to $27,007 in FY 2027 based on estimated premium for FY2026.
m. Motor Vehicle Fuel. Motor vehicle fuel is estimated to decrease 30% under the FY
2026 budget based on the City fuel island fully operational in FY 2027and no longer
purchasing from retail gas stations, then increase 2.0% per year beyond.
n. Motor Vehicle Maintenance. Motor vehicle maintenance is based on the FY 2026
budget, then increase 2.0% per year and beyond.
o. Public Transit. 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); a decrease in Federal Transportation Administration
Capital ($344,329), an increase in employee expense ($120,888); decrease in supplies
and services ($114,293); a reduction in equipment replacements ($99,615), a decrease
in passenger fare revenue ($2,579).
The following is a ten-year history of the Transit subsidy -
Fiscal Year
Amount
q. Shipping & Postage. Postage rates for FY 2027 are estimated to increase 5% over
FY 2025 actual expense and proposed cost increases by United States Postal Service.
A 3.0 percent increase is estimated in succeeding years.
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r. Insurance. Insurance costs are estimated to change as follows:
• Workers Compensation is decreasing 44.18% based on rate change.
• General Liability is decreasing 3.06% based on rate change.
• Damage claims is decreasing 6.86% based on a three year average.
• Property insurance is increasing based on FY 2026 actual over 2%.
s. Housing. The Housing Choice Voucher subsidy payment from the General Fund is
estimated to increase $130,684 in FY 2027. The budgeted administrative cost of the
Housing Choice Voucher Program increased from $1,129,462 in FY 2026 to $1,187,395
in FY 2027. Administrative revenue of the Housing Choice Voucher Program decreased
from $912,012 in FY 2026 to $825,384 in FY 2027. The resulting Housing Choice
Voucher Program deficit increased from $217,450 in FY 2026 to $362,011 in FY 2027.
This deficit is funded by property taxes.
t. Communications Department. In Fiscal Year 2026, Cable Utility Franchise Tax
revenue paid to the City by Mediacom and ImOn, as required by the state franchise fee
agreement, was no longer be enough to support Communications Department
employee expense. A vacant part-time (0.75 FTE) Communications Assistant position
was recommended to be eliminated. All remaining Cable Utility Franchise Tax
supported positions were recommended to be moved to the General Fund. This
General Fund expense will be partially offset by administrative overhead recharges to
the enterprise funds. The Cable Utility Franchise Tax revenue will support
Communications Department supplies and services only going forward.
Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and
Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is
expended, the City will be responsible for all City Media Service equipment replacement
costs. Other jurisdictions will need to plan accordingly.
u. Greater Dubuque Development Corporation. Greater Dubuque Development
Corporation support of $836,135 is budgeted to be paid mostly from Dubuque Industrial
Center Land Sales in FY 2027, with $26,500 for Targeted Neighborhood Reinvestment
strategy paid from the Greater Downtown TIF. In FY 2028 and beyond Greater
Dubuque Development Corporation will be paid from the Greater Downtown TIF and
Dubuque Industrial Center West land sales.
V.
PROPERTY TAX IMPACT
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The recommended Fiscal Year 2027 property tax rate increased 1.38% and will have
the following impact:
Property
Properties..erties
Property Tax
Property
Residential:
$888.20
$915.88
+$26.68
Av.vl - $213,211
Commercial:
$716.01
$679.03
-$36.98
-5.2%
$150,000 value & below
433
381
Commercial:
$2,074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
232
225
Commercial:
$3,433.21
$3,423.53
-$9.38
-0.3%
$300,001-$450,000
147
167
Commercial:
$4,253.76
$5,023.83
+$770.07
+18.1 %
Avg. Value = $624,927
588
636
Property
Properties..erties
Property Tax
Property
Industrial:
$716.01
$679.03
-$36.98
-5.2 %
$150,000 value & below
8
8
Industrial:
$2,074.61
$2,051.29
-$23.32
-1.1 %
$150,001-$300,000 value
11
9
Industrial:
$3,433.21
$3,423.53
-$0.28
-0.3 %
$300,001-$450,000
4
3
Industrial:
$5,090.27
$6,000.56
$910.29
+17.9 %
Avg. Value = $731,693
58
58
Historical Impact on Tax Askings and Average Residential Property Tax Rates
The following is a historical City tax rate comparison. The average percent change in
tax rate from 1987-2027 is-0.83%. The average annual change over the last five years
is +0.56%.
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Page 32
The following pages show historical and projected property tax impacts.
Historical Impact on Tax Askings & Average Residential Property Tax Rates
FY 1987
FY 1988
FY 1989
FY 1990
FY 1991
FY 1992
FY 1993
FY 1994
FY 1995
FY 1996
FY 1997
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024
FY2025
FY2026
FY2027
-W % Change in Tax Rate City Tax Rate
$— $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.0(
(17.50)% (15.00)% (12.50)% (10.00)% (7.50)% (5.00)% (2.50)% —% 2.50% 5.00%
Page 89 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 33
Historical City tax rates and % change in tax rate:
FY 1987
14.5819
FY 1988
13.9500
-4.33%
FY 1989
11.8007
-15.41 %
FY 1990
11.6891
-0.95%
FY 1991
12.2660
+4.94%
FY 1992
12.7741
+4.14%
FY 1993
12.4989
-2.15%
FY 1994
12.6059
+0.86%
FY 1995
11.7821
-6.54%
FY 1996
11.7821
0.00%
FY 1997
11.3815
-3.40%
FY 1998
11.4011
+0.17%
FY 1999
11.0734
-2.87%
FY 2000
10.7160
-3.23%
FY 2001
11.0671
+3.28%
FY 2002
10.7608
-2.77%
FY 2003
10.2120
-5.10%
FY 2004
10.2730
+0.60%
FY 2005
10.0720
-1.96%
FY 2006
9.6991
-3.70%
FY 2007
9.9803
+2.90%
FY 2008
10.3169
+3.37%
FY 2009
9.9690
-3.37%
FY 2010
9.8577
-1.12%
FY 2011
10.0274
+1.72%
FY 2012
10.4511
+4.23%
FY 2013
10.7848
+3.19%
FY 2014
11.0259
+2.24%
FY 2015
11.0259
0.00%
FY 2016
11.0259
0.00%
FY 2017
11.1674
+1.28%
FY 2018
10.8922
-2.46%
FY 2019
10.5884
-2.79%
FY 2020
10.3314
-2.43%
FY 2021
10.1440
-1.81 %
FY 2022
9.8890
-2.51 %
FY 2023
9.7169
-1.74%
FY 2024
9.9014
+1.90%
FY 2025
9.9264
+0.25%
FY 2026
10.0637
+1.38%
Page 90 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 34
Fiscal Year
City Tax Rate % Change in Tax Rate
FY 2027
10.1648 +1.00%
1987 - 2027 Average Change -0.83%
2023-2027 Average Change +0.56%
From Fiscal Year 1987 through Fiscal Year 2027, the average annual change in the
property tax rate is a decrease of 0.83%. Over the last five years, the average annual
change in the property tax rate is a decrease of 0.56%.
Projected Impacts on Tax Askings and Average Residential Property Tax Rates
Project Impacts on Tax Askings & Average Residential Property Tax Rates
8.00% $16.00
6.00% $12.00
4.00% $8.00
2.00% $4.00
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
% Change in Tax Rate City Tax Rate
Projected City tax rates and % change in tax rate*:
FY 2027
10.1648
-
. in Tax Rate
1.00%
FY 2028
10.8757
6.99%
FY 2029
11.0575
1.67%
FY 2030
11.2837
2.05%
FY 2031
11.5768
2.60%
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Page 35
IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE
11
FY 1 "City" Property Tax
City Tax
$453.99
Actual -T7
-11.4 °
Change if
Dollar
.-
9
FY 1
"City" Property Tax
$449.94
°
- 4. 4
FY 1991 *
"City" Property Tax*
$466.92
+3.77%
$16.Q1q
FY 1992
it " Property Tax
$483.63
+3.58%
$16.71
FY 1993*
"City" Property Tax*
$508.73
+5.19%
$25.10
FY 1994
"City" Property Tax
$510.40
+0.33°
1.51
FY 1 *
"City" Property Tax*
$522.65
+2.4 °
12.41
FY 1996
"City" Property Tax
$518.10
-0.87%
-$4.54
FY 1997*
1 "City" Property Tax*
$515.91
-0.42°
- 2.19
FY1
"City" Prr Tx
$512.25
-.71°
FY 1999
"City" Property Tax*
$512.25
0.000/0
$0.00
FY 200
"City" Property Tax
$511.38
- .17°
7
FY 2001
"City" Property Tax
$511.38
0.00%
$0.00
FY 2002
1 "City" Property Tax
$511.38
0.00%
$0.00
FY 2
"City" Property Tax*
$485.79
-5.00%-$25.58
FY 2004
"City" Property Tax
$485.79
0.00%
$0.00
With Homestead Adm.
$493.26
+1.54%
$7.46
FY 2
"City" Property Tax*
$485.93
+0.03%
$0.14
With Homestead Adm.*
$495.21
+0.40°
1.95
FY 2
"City" Property Tax 1
4 4.27
+1.72%
$8.34
With Homestead Adi. (1)
$504.62
+1.90%
$9.41
FY 2007
"City" Property Tax* 2
485.79
-1.72°
- 8.48
With Homestead Adm.*
$496.931
-1. 2°
-$7.69
FY 2008
"City" Property Tax
$496.931
0.00%
$0.00
With Homestead Adm.
$510.45
+2.72%
$13.52
FY 2
"City" Property Tax
$524.53
+2.76%
$14.08
With Homestead Adm.
$538.07
+5.41 °
27.62
FY 2010
"City" Pro rty Tax
$538.07
0.0000
With Homestead Adi.
$550.97
1 +2.40%
$12.90
FY 2011
"City" Property Tax
$564.5Q
+2.47
$13.62
With Homestead Adm.
2.1
+5.65%
$31.13
FY 2012
"City" Property Tax
$611.19
+5.00%
$29.09
With Homestead Adm. 3
629.78
+8.19%
$47.68
FY 2013
"City" Property Tax
$661.25
+5.00%
$31.47
With Homestead Adm. 3
$672.76
+6.82%
$42.98
FY 2014
"City" Property Tax
$705.71
+4.90%
$32.95
FY 2015
"City" Property Tax
$728.48
+3.23%
$22.77
FY 2016
"City" Property Tax
$747.65
+2.63%
+$19.17
FY 2017
"City" Property Tax
$755.70
+1.08%
$8.05
FY 2018
"City" Property Tax
$755.70
0.00%1
$0.00
FY 2019
"City" Property Tax
770.17
+1.91%1
$14.47
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FY 2027 Budget & Fiscal Policy Guidelines
Page 36
City Tax
Actual
Change if
Dollar
Percent
HTC 100%
Change
FY 2020 "City" Property Tax
$770.17
0.00%
$0.00
FY 2021
"City" Property Tax
$769.08
-0.14%
- 1.09
FY 2022
"City" Property Tax
$769.08
0.00%
$0.00
FY 2023
"City" Property Tax
$791.82
+2.96%
+ 22.74
FY 2024
"City" Property Tax
$815.07
+2.94%
+$23.25
FY 2025
"City" Property Tax
$855.82
+5.00%
+ 40.75
FY 2026
"City" Property Tax
$889.20
+3.90%
+$33.38
Averaqe FY1989-FY2026 with Homestead Adl. +1.52%
+$9.92
Average FY2022-FY2026 with Homestead Adj. +2.96%
+$24.02
,Average FY1989-FY2026 without Homestead Ad'.
+1.04%
+$7.32
The average annual dollar change in residential property tax from 1989-2026 is an
increase of $9.92. The average annual dollar change over the last five years is an
increase of $24.02.
Projected impact on average residential property:
MWPROJECTION_"'
FY 2027
"City" Pro ert Tax
CITY TAX
CALCULATION
$915.87
PERCENT
+3.00%
DOLLAR
+ 26.67
FY 2028
"City" Property Tax
$979.93
+6.99%
+$64.06
FY 2029
"City" Property Tax
$996.31
+1.67%
+ 16.38
FY 2030
"City" Property Tax
$1,016.69
+1.67%
+$20.38
FY 2031
"City" Property Tax
1 043.09
+2.32%
+ 23.59
* Denotes year of State -issued equalization orders.
^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%.
(1) The FY 2006 property tax calculation considers the 6.2% valuation increase for the average
residential homeowner as determined by the reappraisal.
(2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006.
(3) The City adopted a budget in FY 2011 and 2012 that provided no increase to the average
homeowner. The State of Iowa underfunded the Homestead Property Tax Credit in both years
costing the average homeowner an additional $18.59 in FY 2012 and $11.51 in FY 2013. This
provided no additional revenues to the City, as this money would have come to the City from the
State if they appropriated the proper amount of funds.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 37
Homestead Property Tax Credit
The Homestead Property Tax Credit was established by the state legislature to reduce the
amount of property tax collected. The intent of the credit was to be a form of tax relief and
provide an incentive for home ownership. The State Homestead Property Tax Credit works by
discounting the tax collected on the first $4,850 of a property's taxable value. This has no
impact on what the City receives from property tax collections, but provides tax relief for the
average homeowner.
Beginning FY 2004, the State of Iowa did not fully fund the State Homestead Property Tax
Credit resulting in the average homeowner paying the unfunded portion. Again, this has no
impact on what the City receives, however as a result has caused the average homeowner to
pay more taxes.
Historical Percent of Iowa Homestead Property Tax Credit Funded by the State of
Iowa
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
85%
81%
7
73%
72%
72%
62%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percent Funded
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Page 38
IMPACT ON COMMERCIAL PROPERTY - EXAMPLE
ACTUAL - O-
FY 1989 "City" Property Tax
TAX
• •
$2,106.42
BUSINESS
-•-
DOLLARCITY
CHANGEICHANGE
- 384.19-15.43%
FY 1990
"City" Propertv Tax
$2,086.50
-$19.92
-0.95%
FY 1991
"City" Property Tax
$2,189.48
+ 102.98
+4.94%
FY 1992
"City" Property Tax
$2,280.18
+$90.70
+4.14%
FY 1993
"City" Property Tax
$2,231.05
- 49.13
-2.15%
FY 1994
"City" Property Tax
$2,250.15
+$19.10
+0.86%
FY 1995
"City" Property Tax
$2,439.60
+ 189.45
+8.42%
FY 1996
"City" Propertv Tax
$2,439.60
$0.00
0.00%
FY 1997
"City" Property Tax
$2,659.36
+ 219.76
+9.01 %
FY 1998
"City" Property Tax
$2,738.43
+$79.07
+2.97%
FY 1999
"City" Property Tax
$2,952.03
+ 213.60
+7.80%
FY 2000
"City" Property Tax
$2,934.21
-$17.82
-0.60%
FY 2001
"City" Property Tax
$2,993.00
+ 58.86
+2.00%
FY 2002
"City" Property Tax
$2,910.25
-$82.84
-2.76%
FY 2003
"City" Property Tax
$3,186.27
+ 276.03
+9.48%
FY 2004
"City" Property Tax
$3,278.41
+$92.15
+2.89%
FY 2005
"City" Property Tax
$3,349.90
+ 71.48
+2.18%
FY 2006
"City" Propertv Tax (1)
$3,152.52
-$197.38
-5.89%
FY 2007
"City" Property Tax
$3,538.03
+ 385.50
+12.23%
FY 2008
"City" Property Tax
$3,688.64
+$150.62
+4.26%
FY 2009
"City" Property Tax
$3,554.71
- 133.94
-3.63%
FY 2010
"City" Propertv Tax
$3,524.48
-$30.23
-0.85%
FY 2011
"City" Property Tax
$3,585.16
+ 60.68
+1.72%
FY 2012
"City" Property Tax
$3,736.64
+$151.48
+4.23%
FY 2013
"City" Property Tax
$3,855.96
+ 119.32
+3.19%
FY 2014
"City" Property Tax
$3,942.14
+2.23%
FY 2015
"City" Property Tax 2
3 896.93
147.72
-1.15%
FY 2016
"City" Property Tax (3)
$3,139.16
$692.62
V-�$757.77
-19.45%
FY 2017
"Cit " Pro ert Tax 4
3 364.61
982.19
+7.18%
FY 2018
"City" Property Tax (5)
$3,280.44
$959.11
-$84.16
-2.50%
FY 2019
"City" Property Tax 6
3 278.23
$843.08
- 2.21
-0.07%
FY 2020
"City" Property Tax (7)
$3,160.71
$860.57
-$117.52
-3.58%
FY 2021
"City" Property Tax 8
3 169.30
$779.03
+ 8.59
+0.27%
FY 2022
"City" Propertv Tax (9)
$3,069.57
$779.50
-$99.73
-3.15%
FY 2023
"City" Property Tax
$3,060.34
$721.73
- 9.23
-0.30%
FY 2024
"City" Property Tax
$3,328.86
+$268.52
+8.77%
FY 2025
"City" Property Tax
$4,179.49
+ 850.63
+25.55%
FY 2026
"City" Property Tax
$4,253.76
+$74.27
1 +1.78%
FY 1989-2026 Average Change
+$46.40
I +1.67%
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Page 39
*Net of Business Property Tax Credit
The average annual dollar change in commercial property taxes from 1989-2026 is a
increase of $46.40. The average annual dollar change over the last five years is a
increase of +$216.89.
Projected impact on average commercial property:
PROJECTED6M
FY 2027
"City" Property Tax
I CITY TAX I
CALCULATIO
$5,023.81
DOLLAR
+ 770.05
PERCENT
+18.10%
FY 2028
"City" Property Tax
$5,375.16
+$351.35
+6.99%
FY 2029
"City" Property Tax
$5,465.02
+ 89.86
+1.67%
FY 2030
"City" Property Tax
$5,465.02
+$89.86
+1.64%
FY 2031
"City" Property Tax
5 721.66
+ 144.85
+2.65%
(1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023.
(11)From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible
for a Business Property Tax Credit. The Business Property Tax Credit was deducted from
the property taxes owed and the credit was funded by the State of Iowa. Beginning in FY
2024, all commercial, industrial, and railroad properties will receive a property assessment
limitation on the first $150,000 of value of the property unit equal to the assessment
limitation for residential property. The value of the property unit that exceeds $150,000
receives the same ninety percent assessment limitation it has in the past.The $125 million
fund will continue to be appropriated each year for reimbursements to counties. County
auditors will file a claim for the first tier of the assessment limitations in September.
Assessors will continue to provide the unit configuration for auditors as these definitions
remained the same. Taxpayers are not required to file an application to receive the first
$150,000 of assessed value at the residential assessment limitation rate. Lawmakers
believe the new standing general fund will exceed the projected level of claims for fiscal
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FY 2027 Budget & Fiscal Policy Guidelines
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years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement
claims will begin being prorated. The projected backfill for Dubuque for the two-tier
assessment limitation in Fiscal Year 2024 is estimated to be $587,446.
IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE
I __I�_CITY
ACTUAL - O-
FY 1989 "City" Propertv Tax
TAX
CALCULATION
$5,900.35
BUSINESS
PROPERTY TAX rPFnIT
DOLLAR
-$1,074.65
PERCENT
.
-15.40%
FY 1990
"City" Property Tax
$5,844.55
- 55.80
-0.95%
FY 1991
"City" Propertv Tax
$6,133.00
+$288.45
+4.94%
FY 1992
"City" Property Tax
$6,387.05
+ 254.05
+4.14%
FY 1993
"City" Property Tax
$6,249.45
-$137.60
-2.15%
FY 1994
"City" Property Tax
$6,302.95
+ 53.50
+0.86%
FY 1995
"City" Propertv Tax
$5,891.05
-$411.90
-6.54%
FY 1996
"City" Property Tax
$5,891.05
$0.00
0.00%
FY 1997
"City" Propertv Tax
$5,690.75
-$200.30
-3.40%
FY 1998
"City" Property Tax
$5,700.56
+ 9.81
+0.17%
FY 1999
"City" Propertv Tax
$5,536.70
-$163.86
-2.87%
FY 2000
"City" Property Tax
$5,358.00
- 178.70
-3.23%
FY 2001
"City" Propertv Tax
$5,533.00
+$175.00
+3.27%
FY 2002
"City" Property Tax
$5,380.42
- 152.58
-2.76%
FY 2003
"City" Property Tax
$5,106.00
-$274.42
-5.10%
FY 2004
"City" Property Tax
$5,136.50
+ 30.50
+0.60%
FY 2005
"City" Propertv Tax
$5,036.00
-$100.50
-1.96%
FY 2006
"City" Property Tax 1
5 814.61
+ 778.61
+15.46%
FY 2007
"City" Property Tax
$5,983.21
+$168.60
+2.90%
FY 2008
"City" Property Tax
$6,184.95
+ 201.74
+3.37%
FY 2009
"City" Property Tax
$5,976.44
-$208.51
-3.37%
FY 2010
"City" Property Tax
$5,909.69
- 66.75
-1.12%
FY 2011
"City" Property Tax
$6,011.44
+$101.75
+1.72%
FY 2012
"City" Property Tax
$6,265.43
+ 253.99
+4.23%
FY 2013
"City" Property Tax
$6,465.48
+$200.05
+3.19%
FY 2014
"City" Property Tax
$6,610.00
+ 144.52
+2.24%
FY 2015
"City" Property Tax (2)
$6,131.80
$147.72
-$478.20
-7.23%
FY 2016
"City" Property Tax 3
5 256.41
$692.62
- 875.39
-14.28%
FY 2017
"City" Property Tax (4)
$5,043.36
$982.19
-$213.05
-4.05%
FY 2018
"City" Property Tax 5
4 917.78
$959.11
- 125.58
-2.49%
FY 2019
"City" Property Tax (6)
$4,869.91
$843.08
-$47.87
-0.97%
FY 2020
"City" Property Tax 7
4 713.76
$860.57
- 156.15
-3.21 %
FY 2021
"City" Property Tax (8)
$4,694.17
$779.03
-$19.59
-0.42%
FY 2022
"City" Propert Tax 9
$4,556.11
$779.50
- 138.06
-2.94%
FY 2023
"City" Property Tax
$4,521.00
$721.73
-$35.11
-0.77%
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FY 2027 Budget & Fiscal Policy Guidelines
Page 41
FY 2024
"Cit " Property Tax
$4,817.26
+ 296.26
+6.55%
FY 2025
"City" Property Tax
$4,179.49
- 637.77
-13.24%
FY 2026
"Cit " Property Tax
$5,090.27
+ 85.68
+2.05%
FY 1989-2027 Average Chan e
-$71.31
-1.13%
2023-2027 Average Changel
-$72.74
-1.35%
*Net of Business Property Tax Credit
The average annual dollar change in industrial property taxes from 1989-2026 is a
decrease of $71.31. The average annual dollar change over the last five years is a
decrease of $72.74.
Projected impact on average industrial property:
PROJECTEDD•
CALCULATION
FY 2027
"City" Property
Tax
$6,000.54
+ 910.29
+17.88%
FY 2028
"Cit " PropertV
Tax
$6,420.19
+ 419.65
+6.99 %
FY 2029
"City" Property
Tax
$6,527.52
+ 107.33
+1.67%
FY 2030
"Cit " Prolpertv
Tax
$6,661.05
+ 133.53
+2.05%
FY 2031
"City" Property
Tax
6 834.06
+ 173.01
+2.60%
(1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023.
(11) From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible
for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the
property taxes owed and the credit was funded by the State of Iowa. Beginning in FY 2024, all
commercial, industrial, and railroad properties will receive a property assessment limitation on
the first $150,000 of value of the property unit equal to the assessment limitation for residential
property. The value of the property unit that exceeds $150,000 receives the same ninety
percent assessment limitation it has in the past.The $125 million fund will continue to be
appropriated each year for reimbursements to counties. County auditors will file a claim for the
first tier of the assessment limitations in September. Assessors will continue to provide the unit
configuration for auditors as these definitions remained the same. Taxpayers are not required to
file an application to receive the first $150,000 of assessed value at the residential assessment
Page 98 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 42
limitation rate. Lawmakers believe the new standing general fund will exceed the projected level
of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government
reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-
tier assessment limitation in Fiscal Year 2024 is estimated to be $587,446.
IMPACT ON MULTI -RESIDENTIAL PROPERTY - EXAMPLE
HISTORICALACTUAL —
r�L
DOLLAR
PERCENT
CALCULATIO
FY 2015
"City" Property Tax
$2,349.34
FY 2016
"City" Property Tax
$2,225.69
- 123.65
-5.26%
FY 2017
"City" Property Tax
$2,160.39
- 65.30
-2.93%
FY 2018
"City" Property Tax
$2,015.48
- 144.91
-6.71 %
FY 2019
"City" Property Tax
$1,870.21
- 145.27
-7.21 %
FY 2020
"City" Property Tax
$1,737.92
- 132.29
-7.07%
FY 2021
"City" Property Tax
$1,896.65
+ 158.73
+9.13%
FY 2022
"City" Property Tax
$1,751.66
- 144.99
-7.64%
FY 2023
"City" Property Tax
$1,625.55
- 126.11
-7.20%
FY 2024 "City" Property Tax $1,419.97
Average FY 2016-FY 2024
- 205.58
-12.65%
- 103.26
-5.28%
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi -residential, which requires a rollback, or
assessment limitations order, on multi -residential property which will eventually equal
the residential rollback. Multi -residential property includes apartments with 3 or more
units. Rental properties of 2 units were already classified as residential property.
The State of Iowa will not backfill property tax loss from the rollback on multi -residential
property. The rollback will occur as follows:
Fiscal Year
1
Rollback %
06
: • 'u
Annual Loss of Tax
Revenue
41
'S191•
1 1
11'.
'•• .1
$5.625.661
This annual loss in tax revenue of $1,186,077 from multi -residential property
when fully implemented in FY 2024 will not be backfilled by the State. From Fiscal
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FY 2027 Budget & Fiscal Policy Guidelines
Page 43
Year 2017 through Fiscal Year 2024 the City will lose $5,625,661 in total, meaning
landlords will have paid that much less in property taxes. The state did not require
landlords to charge lower rents or to make additional investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class.
HISTORY OF INCREASES IN PROPERTY TAX ASKINGS
ChangeYear Tax Askings % Impact
Homeowner'in Tax Askinqs
FY 1 1 1 7 -12. ° -11.4 °
Sales Tax Initiated
°-0,89%
FY 1991
$11.553.468
+6.04%
+3.77%
+6.02%+3.58%
FY 1993
$12.846.296
+4.88%
+5.19%
+3.54%+0.33%
FY 1995
$13.715.850
+3.12%
+2.40%
+2.63%°
FY 1997
$14.418.735
+2.43%
-0.42%
+2.91%°
FY 1999
$15.332.806
+3.34%
0.00%
°-0,17%
FY 2001
$15.574.467
+1.89%
0.00%
+0.72%°
FY 2003
$15.771.203
+0.54%
-5.00%
+2.54%°
FY 2005
$16.372.735
+1.24%
+0.03%
°
+1.72%
FY 2007
$17.179.994
+6.10%
-1.72%
+5.84%°
FY 2009
$18.736.759
+3.04%
+2.76%
+1.91%°
FY 2011
$19.878.962
+4.10%
+2.47%
+7.07%+5.00%
FY 2013
$22.758.753
+6.93%
+5.00%
+1.93%+4.90%
FY 2015
$24.825.015
+7.02%
+3.23%
+0.33%+
°
FY 2017
$26.375.291
+5.90%
+1.08%
°0,00%
FY 2019
$26.494.205
+2.44%
+1.91 %
Page 100 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 44
FY
2020
Tax Askings
$26.296.081
ChangeYear
%
in Tax Askincis
-0.75%
Impact
Homeowner"
0.00%
°-0,14%
FY
2022
$26.215.401
+0.05%
0.00%
°
+ °
FY
2024
$26.633.490
+1.59%
+2.94%
+6.01%+5.00%
FY
2026
$29.872.253
+5.80%
+3.90%
+2.79%1+11.04%
**Does not reflect State unfunded portion of Homestead Credit.
IMPACT ON TAX ASKINGS AND AVERAGE RESIDENTIAL PROPERTY
To maintain the current level of service based on the previous assumptions would
require the following property tax asking increases:
Fiscal
FY
2027
"City" Property
$31,940,934
% Changein
+6.93%
% Impact on Avg.
+3.00%
$ Impact on Avg.
+ 26.67
FY
2028
$34,833,948
+9.06%
+6.99%
+ 64.06
FY
2029
$36,122,257
+3.70%
+1.67%
+ 16.38
FY
2030
$37,597,016
+4.08%
+2.05%
+ 20.38
FY
2031
$39,337,027 1
+4.63%
+2.32%
+ 23.59
GUIDELINE
IThe recommended guideline is a 3.00% or $26.67 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.
These guidelines include an estimated $659,063 for recurring and $974,917 for
non -recurring improvement packages funded by a portion of the $5.3 million in
internal loans repaid to the General Fund by the Greater Downtown TIF District
and increased ambulance fees. Future years of the recurring improvement
packages will be funded by a portion of the 25% of Greater Downtown TIF District
that will be returned to taxing bodies in Fiscal Year 2028 and beyond. The amount
of imnrnvcmcnf nnr•Irnncc fi inr4nri mw nhonnc nc the FV7n77 hi irincf is not vcf
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:
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Page 45
1. Limits the General Fund levy by constraining growth by 2% or 3% each
year, depending on the trigger hit:
Non-TIF taxable growth under 3%, no reduction
Non-TIF taxable growth over 3% but less than 6%, 2% reduction factor
applied
Non-TIF taxable growth over 6%, 3% reduction factor is applied
The City of Dubuque Non-TIF taxable growth for FY2027 is 5.89%, the
General Fund levy is constrained by a growth reduction factor of 2%.
The General Fund levy for FY2027 is $7.63281 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 $16.8 million or a levy rate of $5.3532
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.
As this offset occurs each year, the special revenue levies will reach their
maximums removing this option.
2. March 5: Cities must file a report with Iowa Department of Management
containing information specified by new law to be contained in mailings.
3. March 20: County Auditor must send each property owner or taxpayer with
the county by regular mail an individual statement with the specified
information broken out by political subdivision comprising the taxpayer's
district.
4. Taxpayer Statements must include:
• Total Current Year Tax Rate and Dollars
• Combined effective property tax rate for the city calculated using
the sum of the current fiscal year's actual property tax certified for
levy of all of city's levies
• Proposed Budget Year Tax Rate and Dollars
• If the Proposed Budget Property Tax Dollars exceed the current
fiscal year's actual property tax dollars, a detailed statement of the
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FY 2027 Budget & Fiscal Policy Guidelines
Page 46
major reasons for the increase, including the specific purposes or
programs for which the city is proposing an increase
• An example comparing the amount of property taxes on a
residential property with an actual value of $100,000 in the current
fiscal year and such amount on the residential property using the
proposed property tax dollars for the budget year, including the
percentage difference in such amounts.
• An example comparing the amount of property taxes on a
commercial property with an actual value of $300,000 in the current
fiscal year and such amount on the commercial property using the
proposed property tax dollars for the budget year, including the
percentage difference in such amounts.
• The city's percentage of total property taxes certified for levy in the
owner's or taxpayer's taxing district in the current fiscal year
amount all taxing authorities.
• The date, time, and location of the city's public hearing on the
information contained in the statements.
• Information on how to access the city's internet site, the city's
statements, and other budget documents for prior fiscal years.
5. Public hearing on proposed property tax amounts for the budget year and
new taxpayer statements.
• In addition to public hearing to adopt the budget.
• Replaces maximum property tax dollars public hearing held in prior
years.
• Must be separate from any other meeting of City Council, including
any other meeting or hearing related to the budget.
• City Council can decrease, but not increase, the proposed property
tax amount to be included in the budget.
6. Budget Certification deadline to Iowa Department of Management is April
30th instead of March 31 st.
• If City is issuing new debt that uses the debt service levy, budget
must be adopted by April 15th.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 47
CAPITAL IMPROVEMENT BUDGET GUIDELINES
U. INTEGRATION OF CAPITAL RESOURCES
GUIDELINE
To obtain maximum utilization, coordination and impact of all capital improvement
resources available to the City, state and federal block and categorical capital
grants and funds shall be integrated into a comprehensive five-year Capital
Improvement Proaram (CIP) for the Citv of Dubuaue.
V. INTEGRITY OF CIP PROCESS
GUIDELINE
The City shall make all capital improvements in accordance with an adopted
Capital Improvement Program (CIP). If conditions change and projects must be
added and/or removed from the CIP, the changes require approval by the City
Council.
W. RENOVATION AND MAINTENANCE
GUIDELINE
Capital improvement expenditures should concentrate on renovating and
maintaining existing facilities to preserve prior community investment.
X. NEW CAPITAL FACILITIES
GUIDELINP
Construction of new or expanded facilities which would result in new or
substantially increased operating costs will be considered only if:
1) their necessity has been clearly demonstrated
2) their operating cost estimates and plans for providing those operating costs
have been developed
3) they can be financed in the long term; and
Y. COOPERATIVE PROJECTS
GUIDELINL
Increased efforts should be undertaken to enter mutually beneficial cooperative
capital improvement projects with the county, school district and private groups.
Examples include cost -sharing to develop joint -use facilities and cost -sharing to
improve roads and bridaes are examples.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 48
Z. USE OF GENERAL OBLIGATION BONDS
DISCUSSIO,
The Iowa Constitution limits the General Obligation debt of any city to 5% of the actual value of the
taxable property within the city. The Iowa legislature has determined that the value for calculating
the debt limit shall be the actual value of the taxable property prior to any "rollback" mandated by
state statute.
On October 15, 2012, the City Council adopted a formal Debt Management Policy for the City of
Dubuque. An amendment to this policy was adopted by City Council on December 15, 2025. Prior
to adoption of the formal policy, the City had already been practicing much of the policy, although
the formal policy included some new additions. The most significant components of the Debt
Management Policy include an internal policy of maintaining the City's general obligation
outstanding debt at no more than 95% (except as a result of disasters) of the limit prescribed by the
State constitution as of June 30th of each year. It is projected as of June 30, 2026 the City will be at
33.50%. City will not use short-term borrowing to finance operating needs except in the case of an
extreme financial emergency which is beyond its control or reasonable ability to forecast. Currently
there is no such debt, and none will be recommended in this process.
Bond Financing Stipulations
• Recognizing that bond issuance costs (bond counsel, bond rating, and financial management
fees) add to the total interest costs of financing:
• Bond financing should not be used if the aggregate cost of projects to be financed by the
bond issue is less than $500,000
• City will consider long-term financing for the construction, acquisition, maintenance,
replacement, or expansion of physical assets (including land) only if they have a useful life of
at least five years
• City shall strive to repay 20 percent of the principal amount of its general obligation debt
within five years and at least 40 percent within ten years.
• The City shall strive to repay 40 percent of the principal amount of its revenue debt within ten
years.
Bond Ratings
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
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FY 2027 Budget & Fiscal Policy Guidelines
Page 49
will remain so despite future borrowing needs." According to Moody's, the Aa2 issuer rating for the
City of Dubuque's bonds reflects the city's healthy economic base, which serves as a regional
economic center. Other rationale stated for the rating include full value per capita and adjusted
resident income are solid at around $109,000 and 98% respectively, though weaker than Aa peers,
in part because of a large student population, available fund balance was strong at around 60% of
revenue at the close of fiscal 2023 (year-end June 30), and cash was stronger at 85% of revenue.
The City's available fund balance will likely remain well over 45%, despite some planned draws in
fiscal 2024 and fiscal 2025 to spend down federal funds from the pandemic. Despite the state
adopting new property tax restrictions, revenue raising flexibility remains strong because the City
maintains significant margin in its employee benefits fund and is not utilizing its emergency levy.
The long-term liabilities ratio will likely remain well under 300% inclusive of the current issuances
and future borrowing plans, and fixed -costs ratio will remain well below 20%.
In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds from
Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to 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.
In November of 2022, Moody's Investors Service ("Moodys") released a new rating methodology for
cities and counties. Two significant changes result from the new methodology; cities are now
assigned an issuer rating meant to convey the creditworthiness of the issuer as a whole without
regard to a specific borrowing, and business -type enterprise funds are now being considered
together with general fund revenues and balances in the determination of financial performance.
Under the new methodology, there are two metrics that contribute to financial performance.
Available Fund Balance Ratio ("AFBR") _ (Available Fund Balance + Net Current Assets/Revenue)
and Liquidity Ratio ("LR") _ (Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35,
and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in connection to its
annual issuance of bonds. At that time, Moody's calculated the City's AFBR to be 45.2%, and its LR
to be 59.8%. The balances used in these calculations were likely elevated due to unspent ARPA
funds. The change in methodology will now consider revenues and net assets from business -type
activities in these calculations. As such, the City's general obligation rating will now be directly
impacted by the financial performance of enterprise funds. Establishing rates and charges adequate
to provide both debt service coverage and significant liquidity will be necessary to maintain the
City's ratings.
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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.
General Obligation Debt
Fiscal Year 2026 Debt
FY 2026 Debt Limit: The FY 2024 assessable value of the community for calculating the statutory
debt limit is $6,472,591,693, which at 5%, indicates a total General Obligation debt capacity of
$323,629,585, which at 5%, indicates a total General Obligation debt capacity of $323,629,585.
Based on Outstanding G.O. debt (including tax increment debt, remaining payments on
economic development TIF rebates, and general fund lease agreement) on June 30, 2026 will
be $108,410,164 (33.50% of the statutory debt limit) leaving an available debt capacity of
$215,219,421 (66.50%).
It should be noted that most of the City of Dubuque's outstanding debt is not paid for with property
taxes (except TIF), but is abated from other revenues. Exceptions include one issuance for the
replacement of a Fire Pumper truck in the amount of $1,410,000 with debt service of $83,700 in FY
2026 and one issuance for the franchise fee litigation settlement in the amount of $2,800,000 with
debt service of $145,000 in FY 2026. Included in the debt is $4,661,120 of property tax rebates to
businesses creating and retaining jobs and investing in their businesses.
Statutory Debt Limit
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100% 90% o
87 /°
82% 79%
87% 72%
75% 66%
50%
25%
Statutory Debt Limit Used
(as of June 30th)
79%
74%
70% o 0
66 /0 66 /o
62%
'%44%43%
36%36%34%33%32%3
-Am Y
Cn C) V 00 CD O
N N N N N
A Cn 0) -! 00
FY16 Adopted FY26 Adopted
31%33%30% o
� 27 /0 25% o
22 /020%
�� II
N W W W W W W
The City also has debt that is not subject to the statutory debt limit. This debt includes
revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater fees on
June 30, 2026 will have a balance of $167,789,201. The total City indebtedness as of June
30, 2026, is projected to be $289,568,909. The total City indebtedness as of June 30, 2025,
was $281,085,184. In FY 2026, the City will have a projected $8,483,725 or 3.02% more
in debt. The City is using debt to accomplish necessary projects and to take advantage of
the attractive interest rates in the current market.
The following chart shows Dubuque's relative position pertaining to use of the statutory debt
limit for Fiscal Year 2026 compared to the other cities in Iowa for Fiscal Year 2025 with a
population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa Cities
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
Percentage of Legal
Debt Limit Utilized
11
Des Moines (FY25)
S 964.798.967
S 573.230.000
59.41 %
10
Cedar Rapids FY 25
767,559,335
S 428,550,000
55.83 °
W. Des Moines FY2
551,635,692
S 307,090,0007
°
8
Waterloo (FY25)
S 267.626.798
S 137.905.065
51.53 %
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7
1 Sioux City FY25
$ 367,743,172
$ 146,935,000
1 39.96 %
6
Davenport (FY25) 1
$ 493,660,291
$ 176,195,000
35.69 %
5
I Dubu ue FY26
323,629.585
108,410,164
33.50 °
4
Ankeny FY25
529,988,951
S 97,645,00018.42
°
3
1 Ames (FY25)
$ 328.'145.527
$ 56.710.000
17.27 %
2
Iowa City FY25
435,367,793
S 65,945,000
15.15 °
1
Council Bluffs (FY25)
427,559,692
S 61,320,00014.34
°
Average w/o Dubuque
$ 205,152,507
36.33
Percent of Legal Debt Limit Utilized
75%
50%
Q() C)aoi
25% 0 18.42%
14.34% 15.15% 17.27 /o
0/a E 0 0
\�\J 5 �aG��� e�Q 0' Q�e +G\116
Go J I \o P p� �a�► �\op� 5\0
Pe
eta
59.41
55.67% 55.83
00
y�o\�e5 Q\d5
�e eda �e
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. The average of the other cities (36.33%) is 8.4% higher than
Dubuque (33.50%).
By the end of the Recommended 5-Year Capital Improvement Program (CIP) budget, the total
amount of debt for the City of Dubuque would be $310.62 million (32.90% of the statutory debt
limit). Projections out 10 years to Fiscal Year 2035 show the City of Dubuque at 19.66% of the
statutory debt limit, and the projection is to be at $200.79 million (19.66% of statutory debt limit)
within 10 years.
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Total Debt (In Millions)
$324
$302.3 $305.7
5308.2$310.6
$297 $290.1 5289.E S293.6
$295.5 $282.0 $279.9 S281.1
$270 _ $265.6
$285.7 '-�$267.4 $284.9
$274.7 $255.9
.2 L 6
$264.0 $250.$264.
- ' $244.3$241.
$243 ILI- $252.1 $249.4
$231.1 $243.5
$222.5
$216 - - $226.2
$222.2
$2•8
$189
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
Ah FY16 Adopted --il— FY26 Adopted
The escalation observed in Fiscal Year 2025 is attributable to the City's decision to issue
budgetary debt for both Fiscal Year 2024 and Fiscal Year 2025 within a single fiscal period.
This approach resulted in a significant increase in the aggregate debt reported for Fiscal
Year 2025.
Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation Program.
Through a new state program, the City is able to issue $28.25 million in revenue bonds payable
from the 5 percent State Sales Tax increment for projects in the Bee Branch Watershed allowing the
City to complete the Bee Branch Creek Restoration, construct permeable alleys, replace the Bee
Branch flood gates, complete North End Storm Sewers, construct a Flood Control Maintenance
Facility, install Water Plant Flood Control and complete 17t" Street Storm Sewer over the next
twenty years.
The ten year history of the City's use of the statutory debt limit is as follows:
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY24
FY25
FY26
86.54%
66.06%
59.79%
52.90%
46.91 %
43.51 %
43.33%
39.36%
40.07%
34.85%
33.50%
As we approach the preparation of the FY 2027-2031 Capital Improvement Program (CIP) the
challenge is not the City's capacity to borrow money but (a) how to identify, limit, and prioritize
projects which justify the interest payments and; (b) how to balance high -priority projects against
their impact on the property tax rate.
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GUIDELINE
There are many high priority capital improvement projects which must be constructed
during the FY 2027 - FY 2031 period. The potential of partially forgivable State
Revolving Fund Loans and an increase in grant funding may impact the need to borrow
for projects. As in the past, debt will be required on several major capital projects,
including the Bee Branch Watershed Project, Airport Improvements, Park
Improvements, Sidewalk and Street Improvements, Sanitary Sewer Fund, Parking
Fund, and Water Fund. Borrowings will also include smaller projects and equipment
replacements such as Park developments and Public Works equipment. These smaller
borrowings will be for a term not exceeding the life of the asset and not less than six
years in accordance to the Debt Management Policy. Alternative sources of funds will
�hiwc h., /i — C+-+— D---h,;-- I --- C-14-N +— +[— I -A-+ f4—k+
AA. ROAD USE TAX FUND
DISCUSSION
Actual Road Use Tax Fund receipts are as follows:
Road Use Tax
(In Millions)
FY
2015
$6.0
FY
2016
$7.1
FY
2017
$7.2
FY
2018
$7.3
FY
2019
$7.5
FY
2020
$7.4
FY
2021
$8.6
FY
2022
1$8.2
FY
2023
$8.2
FY
2024
$8.4
FY
2025
$8.4
$1.0 $2.0 $3.0
$4.0 $5.0 $6.0 $7.0 $8.0
$9.0
The FY 2026 budget was based on receiving $8,400,000 in Road Use Tax funds. In FY 2026, 100%
of the Road Use Tax income is in the operating budget. The State of Iowa increased the gas tax 10
cents per gallon in FY 2016.
With increases in City DMATS and State Road Use Tax funds, the City will be able to substantially
add to the number of street lights and continue with major road improvements.
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GUIDELINE
It is preferable to shift Road Use Tax funds to the capital budget for street maintenance
and repair to reduce the need to borrow funds for routine street maintenance and
improvements. This shift cannot occur until there are increased revenues or reduced
expense that would allow this shift without a property tax impact. The City does use
I30% of the local option sales tax for street projects and maintenance of City buildings.
BB. COMMERCIAL AND INDUSTRIAL DEVELOPMENT
GUIDELINE
Current City, commercial and industrial development efforts should be continued to (a)
preserve current jobs and create new job opportunities and (b) enlarge and diversify
the economic base. Financing these efforts and programs should continue to be a high
nrinrity
CC. HOUSING
GUIDELINE
To maintain an adequate supply of safe and decent housing, the City should strive to
preserve existing single family and rental housing that is not substandard and provide
opportunities for development of new housing, including owner occupied, within the
City's corporate limits for all residents, particularly for people of low and moderate
income. Workforce rental housing is becoming increasingly important and the City
provides incentives for building rehabilitations. In 2023, the City Council adopted
housing incentive programs through the use of Tax Abatement and Tax Increment
DD. SALES TAX
GUIDELINE
Sales Tax revenue shall be used according to the following split:
Sales Tax 50%: Property Tax Relief
Sales Tax 30%:
(a) The reduction by at least 75% of street special assessments.
30% (b) The maintenance and repair of streets.
Sales Tax 20%:
(a) The upkeep of City -owned property such as sidewalks, steps, storm
20% sewers, walls, curbs, traffic signals and signs, bridges, buildings, and
facilities (e.g. Airport, Five Flags Center, Library, Law Enforcement
Center, City Hall, Fire Stations, Parks, and Swimming Pools).
(b) Transit equipment, such as buses
(c) Riverfront and wetland development
(d) Fcnnnmic Develnnment PrniPcts
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EE. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE DUBUQUE
RACING ASSOCIATION
47 4411M*i rel
The contract with the Dubuque Racing Association calls for distribution at the end of its fiscal year,
December 31St, of 50 percent of its net cash operating funds to the City of Dubuque. In early -
February, the City receives payment of proceeds to be distributed. These proceeds are then
allocated for capital improvements, with the highest priority given to reducing the City's annual
borrowing.
The Dubuque Racing Association provides the City with projections of future distributions. Since
gaming is a highly volatile industry, the estimates are discounted prior to including them in the City's
Five -Year CIP.
The February 2027 DRA distributions will be used in Fiscal Year 2027 to 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. A change from past use of DRA distributions, 0% of the February 2027 projections of
operating surplus have been anticipated as resources to support the Fiscal Year 2027 capital
improvement projects. The estimates received from the DRA will be reduced by 5 percent for FY
2029 resources, 10 percent for FY 2030, and 15 percent for FY 2031 resources, to provide a margin
of error in case the estimates are not realized.
GUIDELP
$1,286,001 of February 2027 DRA distributions will be used for FY2027 property tax
relief. This is a change from past use of DRA distributions because all funds will be
used for Fiscal Year 2027 operations.ln Fiscal Year 2026 and beyond, the City
anticipates distribution of a significant amount of net cash proceeds for use in the
Capital Improvement Program. These amounts will be budgeted in the Five -Year CIP
in the year they are received and will be used to reduce required General Obligation
borrowing. The three out -years will be discounted by 5 percent, 10 percent, and 15
nercent resnectively.
FF. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING BUDGET
EXPENSE
GUIDELII�
Capital improvement expenditures that will reduce future maintenance and operating
expense will receive priority funding and these types of initiatives will be encouraged in
all departments and funding sources as a means of maximizing the use of available
resources. This emahasis reflects fiscally resaonsible Iona-ranae Dlannina efforts.
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GG. USE OF GAMING -RELATED RECEIPTS
17b*d113 011,1
On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for
lease of the Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5%
of coin -in. The amendment increased the amount retained by the DRA for the operating budget
reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to
the Depreciation and Improvement Fund for facility maintenance. In addition, In addition, the
distribution of net profit is now split three ways between the City, charities, and the Schmitt Island
Master Plan Implementation from a two-way split between the City and charities. The amended
lease has an expiration date of December 31, 2055.
The following shows the historical split of DRA gaming taxes and rents between the City's operating
and capital budgets:
Split of DRA Gaming Taxes & Rents Between Operating & Capital Budgets
100%
50% 25% 24%15%14%10% 3% —% 1 % 3% 4% 4% —% —% —% —% o o % —% —% —O
75% -
8- - 0-
50% - o 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0
8_0o o o r� cfl co 0 0 0 0 0 0 0 0 0 0
0 0 � � 0) 0)
lf7 00 00
o � ~
25% o
L0
Irl
Operating Capital
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Notable Changes:
*FY 2004 A new lease took effect with the Dubuque Racing Association for lease of the Dubuque
Greyhound Park and Casino. This new lease was negotiated after the FY 2005 budget was
approved and raised the lease payment from '/2% of coin -in to 1 % of coin -in. This new lease and the
expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000
gaming positions, effective August 1, 2005, provided additional revenues to the City of Dubuque.
**FY 2009 The Diamond Jo expanded to a land -based barge casino facility and increased to 1,100
slots on December 1, 2008. This expansion was projected to decrease the Q gaming market and
correspondingly the coin -in by just over 21 percent. Based on the projected market share loss, the
City did not receive a distribution of cash flows from the Dubuque Racing Association (DRA) in
Fiscal Years 2009 and 2010.
***FY 2010 The operating portion of the split now includes the debt service required on the 2002
general obligation bonds for the America's River Project that was previously considered as part of
the capital portion of the DRA lease. Debt obligations are considered a continuing annual expense
and are more accurately reflected as part of the operating portion of the DRA lease.
****FY 2011 DRA distributions restarted in FY 2011 instead of the projected year of FY 2012.
FY 2016 A reduction in revenue in the Greater Downtown TIF urban renewal area resulted in
reduced revenues to make debt payments and it was necessary for the general fund to support
$84,104 in FY 2015 and $78,242 in FY 2016 of debt service payments, which were funded by
reducing the amount of gaming revenues from taxes and DRA lease that goes to capital
recommended in FY 2016.
*******FY 2021 A lease amendment took effect with the Dubuque Racing Association for the lease of
the Q Casino. This lease amendment added a payment equal to'/2% of monthly sports wagering
conducted on Q Sportsbook retail or Q advance deposit sports wagering internet site.
*******FY 2022 A lease amendment took effect with the Dubuque Racing Association for lease of the
Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5% of coin-
in.The amendment increased the amount retained by the DRA for the operating budget reserve
from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the
Depreciation and Improvement Fund for facility maintenance. The split of annual distribution was
changed from 50% City/ 50% charity to one third City, one third charity, one third Chaplain Schmitt
Island Development Fund. In addition, the amended lease has an expiration date of December 31,
2036.
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Page 59
..""**FY 2023 A lease amendment took effect with the Dubuque Racing Association for lease of the
Q Casino. This lease amendment extended the termination date from 2036 to 2055. The
amendment allows $1.5 million of cash reserve fund as a down payment of a construction loan in
FY23. The DRA is required to establish a debt reserve fund equal to one year of debt payments,
almost $7 million.
The change in market share and changes in the lease agreement impacts the City's lease payment
from the DRA. The new lease effective 1/1/22 requires the DRA to pay the City 1.5 percent of coin in
from slot machines, 4.8 percent of gross revenue from table games, and 0.5 percent of sports
'1011119091
In calendar year 2025, the DRA (Q Casino) reported an increase of +8.7% in gross gaming revenue
(GGR), while Diamond Jo Casino experienced a slight decline of -1 % compared to calendar year
2024. The overall Dubuque gaming market reached approximately $125.7 million in calendar 2025,
reflecting a +2.5% increase from the $122.6 million reported in calendar year 2024. The growth in
GGR at DRA (Q Casino) was anticipated, as several redeveloped outlets —including the casino floor,
food and beverage (F&B) operations, and banquet facilities —were fully open during the year.
In addition to gaming revenue growth, the DRA continued to see growth in non -gaming revenue
streams, particularly in food and beverage and the newly developed banquet and event space. This
combined growth contributed to an overall increase in total gross revenue of approximately +9% in
calendar year 2025 compared to calendar year 2024.
Looking ahead, the DRA projects that gross gaming revenue will remain relatively flat in calendar year
2027, primarily due to the anticipated opening of the Linn County (Cedar Rapids) casino on December
31, 2026. Despite this, total gross revenue is expected to increase by approximately +2.63% in 2027,
driven by continued expansion in auxiliary revenue streams such as hotel operations, food and
beverage, and banquet services.
Beyond 2027, the DRA forecasts moderate growth in gaming revenue, with projected increases of
+3.4% in FY 2028, +2.1 % in FY 2029, +1.0% in FY 2030, and +1.0% in FY 2031. Total gross revenue
is expected to grow at similar but slightly higher rates, with projected increases of +3.3% in FY 2028,
+2.2% in FY 2029, +1.3% in FY 2030, and +1.0% in FY 2031.
A new Hard Rock Casino has opened in Rockford, Illinois.
Additionally, the Ho -Chunk Nation has announced plans to develop a $705 million casino, hotel,
and conference center in Beloit, Wisconsin, to be constructed in multiple phases. The casino
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FY 2027 Budget & Fiscal Policy Guidelines
Page 60
component is currently scheduled for completion in the fourth quarter of 2026." Competition from
these new casinos follows years of the State of Illinois allowing slot machines in taverns.
The 500 per patron tax previously received from the Diamond Jo was replaced by a $500,000 fixed
payment based on their revised parking agreement which expires June 16, 2029.
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Page 1
CITY OF DUBUQU`
BUDGET & FISCAL POLICY GUIDELINES
FISCAL YEAR 2027
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Page 2
Operating Budget Guidelines
The Policy Guidelines are developed and adopted by City Council during the budgeting
process to provide targets or parameters within which the budget recommendation will
be formulated, in the context of the City Council Goals and Priorities established in
October 2025. The final budget presented by the City Manager may not meet all these
targets due to changing conditions and updated information during budget preparation.
To the extent the recommended budget varies from the guidelines, an explanation will
be provided in the printed budget document. By State law, the budget that begins July
1, 2026 must be adopted by April 30, 2026.
A. RESIDENT PARTICIPATION
GUIDELINE
To encourage resident participation in the budget process, City Council will hold
multiple special meetings in addition to the budget public hearing for the purpose of
lreviewing the budget recommendations for each City department and requesting public
input following each departmental review.
The budget will be prepared in such a way as to maximize its understanding by
residents. Copies of the recommended budget documents will be accessed via the
following:
a. The City Clerk's office, located in City Hall (printed)
b. The government documents section at the Carnegie Stout Public Library
(printed)
c. On the City's website at www.citvofdubugue.org/budget (digital)
Opportunities are provided for resident input prior to formulation of the City Manager's
recommended budget and will be provided again prior to final Council adoption, both at
City Council budget special meetings and at the required budget public hearing.
Timeline of Public Input Opportunities
The Budget Office conducts year-round community outreach with Balancing Act using
print and digital marketing and presentations.
• November: The City Manager hosted an evening public budget input meeting.
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Page 3
Open Budget
dollarsandcents.cityofdubug ue.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.
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high -priority
budget input questions, and leave comments.
Taxpayer Receipt
During Fiscal Year 2019, the City launched an online application which allows users to
generate an estimate of how their tax dollars are spent. The tool uses data inputted by
the user such as income, age, taxable value of home, and percentage of goods
purchased within City limits. The resulting customized receipt demonstrates an estimate
of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other
city services. This tool is in support of the City Council goal of a financially responsible
and high-performance organization and addresses a Council -identified outcome of
providing opportunities for residents to engage in City governance and enhance
transparency of City decision -making.
B. SERVICE OBJECTIVES AND SERVICE LEVELS
GUIDELINE
The budget will identify specific objectives to be accomplished during the budget year,
July 1 through June 30, for each activity of the City government. The objectives serve
as a commitment to the citizens from the City Council and City organization and
identify the level of service which the citizen can anticipate.
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Page 4
C. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED
GUIDELINE
Two types of budget documents will be prepared for public dissemination. The
recommended City operating budget for Fiscal Year 2027 will consist of a
Recommended City Council Policy Budget that is a collection of information that has
been prepared for department hearings and a Residents Guide to the Recommended
FY 2027 Budget. These documents will be available on the Friday proceeding the
Budget Presentation to City Council. In FY 2027, that date is April 3, 2026.
1. Recommended City Council Policy Budget The purpose of this documents is
to focus attention on policy decisions involving what services the City
government will provide, who will pay for them, and the implications of such
decisions. The document will emphasize objectives, accomplishments and
associated costs for the budget being recommended by the City Manager.
The Recommended City Council Policy Budget will include the following
information for each department:
• Highlights of prior year's accomplishments and Future Year's Initiatives
• A financial summary
• A summary of improvement packages requested and recommended
• significant line items
• Capital improvement projects in the current year and those recommended
over the next five years
• Organizational chart for larger departments and major goals, objectives
and performance measures for each cost center within that department
• Line item expense and revenue financial summaries.
2. The Residents Guide This section of the Recommended FY 2027 Budget will
be a supplementary composite of tables, financial summaries and explanations.
It will include the operating and capital budget transmittal messages and the
adopted City Council Budget Policy Guidelines. Through graphs, charts and
tables it presents financial summaries which provide an overview of the total
operating and capital budgets.
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Page 5
D. ADOPT A BALANCED BUDGET
Cei�Jl�7��l�1�
The City will adopt a balanced budget in which expenditures will not be allowed to
exceed reasonable estimated resources. The City will pay for all current expenditures
with current revenues
E. BALANCE BETWEEN SERVICES AND TAX BURDEN
Cei1Jl91:11W =
The budget should reflect a balance between services provided and the burden of
paying taxes and/or fees for those services. It is not possible or desirable for the City to
provide all the services requested by individual residents. The City must consider the
ability of residents to pay for services in setting service levels and priorities.
F. MAINTENANCE EXISTING LEVEL OF SERVICE
GUIDELINE
To the extent possible with the financial resources available, the City should attempt to
maintain the existing level of services. As often as reasonably possible, each service
should be tested against the following questions:
a. Is this service truly necessary?
b. Should the City provide it?
c. What level of service should be provided?
d. Is there a better, less costly way to provide it?
e. What is its priority compared to other services?
f. What is the level of demand for the service?
g. Should this service be supported by property tax, user fees, or a combination?
G. IMPROVE PRODUCTIVITY
r,i iinFLINE
Continue efforts to stretch the value of each tax dollar and maximize the level of City
services purchased with tax dollars through continual improvements in efficiency and
effectiveness. Developing innovative and imaginative approaches for old tasks,
reducing duplication of service effort, creative application of new technologies, and
more effective organizational arrangements are approaches to this challenge.
H. USE OF VOLUNTEERS
DISCUSSION
To respect residents who must pay taxes, the City must seek to expand resources and
supplement service -delivery capacity by continuing to increase direct resident
involvement with service delivery. Residents are encouraged to assume tasks
previously performed or provided by City government. This may require the City to
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change and expand the approach to service delivery by providing organizational skills
and training and coordinating staff, office space, meeting space, equipment, supplies
and materials rather than directly providing more expensive full-time City staff. Activities
in which residents can continue to take an active role include: Library, Recreation,
Parks, Five Flags Center, and Police.
GUIDELINE
Future maintenance of City service levels may depend partially or largely on volunteer
resident staffs. Efforts shall continue to identify and implement areas of City government
where (a) volunteers can be utilized to supplement City employees to maintain service
levels (i.e., Library, Recreation, Parks, Police) or (b) service delivery can be adopted by
to non -government groups and sponsors -- usually with some corresponding financial
support.
I. RESTRICTIONS ON INITIATING NEW SERVICE
GUIDELINE
New service shall only be considered: (a) when additional revenue or offsetting
reduction in expenditures is proposed; or (b) when mandated by state or federal law.
J. SALARY INCREASES OVER THE AMOUNT BUDGETED SHALL
BE FINANCED FROM BUDGET REDUCTIONS IN THE
DEPARTMENT(S) OF THE BENEFITING EMPLOYEES
DISCU551UN
The recommended budget includes salary amounts for all City employees. However,
experience shows that budgeted amounts are often exceeded by fact finder and/or
arbitrator awards. Such "neutrals" do not consider the overall financial capabilities and
needs of the community and the fact that the budget is carefully balanced and fragile.
Such awards have caused overdrawn budgets, deferral of necessary budgeted
expenditures, expenditure of working balances and reserves, and have generally
reduced the financial condition or health of the City government. To protect the financial
integrity of the City government, it is recommended the cost of any salary adjustment
over the amount financed in the budget is paid for by reductions in the budget of the
department(s) of the benefiting employees.
The City has five collective bargaining agreements. The current contracts expire as
follows:
.. inina U
Contract Expires-1
June 30 2030
Teamsters Local Union No. 120
Teamsters Local Union No. 120 Bus Operators
June 30, 2030
Dubuque Professional Firefighters Association
June 30 2027
Dubuque Police Protective Association
June 30 2029
International Union of Operatinq Enqineers
June 30, 2029
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GUIDELINE
Salary increases over the amount budgeted for salaries shall be financed from
operating budget reductions in the department(s) of the benefiting employees.
K. THE AFFORDABLE CARE ACT
GUIDELINE
The Affordable Care Act is a health care law that aims to improve the current health
care system by increasing access to health coverage for Americans and introducing
new protections for people who have health insurance. The Affordable Care Act (ACA)
was signed into law on March 23, 2010. Under the ACA, employers with more than 50
full-time equivalent employees must provide affordable "minimum essential coverage" to
full-time equivalent employees. The definition of a full-time equivalent employee under
the Affordable Care Act is any employee that works 30 hours per week or more on
average over a twelve-month period (1,660 hours or more). There is a twelve-month
monitoring period for part-time employees. If a part-time employee meets or exceeds 30
hours per week on average during that twelve-month period, the City must provide
health insurance. On July 2, 2013, the Treasury Department announced that it
postponed the employer shared responsibility mandate for one year. Based on the initial
requirements of the Affordable Health Care Act, the Fiscal Year 2014 budget provided
for insurance coverage effective February 1, 2014 for several part-time employees. In
addition, the Fiscal Year 2014 budget provided for making several part- time positions
full-time on June 1, 2014. Due to the delay of the employer shared responsibility
mandate for the Affordable Health Care Act, the City delayed providing insurance
coverage for eligible part-time employees and delayed making eligible part- time
positions full-time until January 1, 2015.The Standard Measurement Period was
delayed from January 1, 2013 through December 31, 2013 to December 1, 2013
through November 30, 2014 with the first provision of health insurance date being
January 1, 2015.
The impact of the Affordable Care Act on the City of Dubuque included changing nine
part-time positions to full-time (Bus Operators (4), Police Clerk Typist (1), Building
Services Custodians (3), and Finance Cashier (1) in Fiscal Year 2016. In addition, nine
part-time positions were offered health insurance benefits due to working more
than1,560 hours (Bus Operators (4), Golf Professional, Assistant Golf Professional, Golf
Maintenance Worker, Parks Maintenance Worker, and Water Meter Service Worker).
The number of these part-time positions with health insurance benefits has been
reduced as employees in these positions accept other positions or leave employment
with the City of Dubuque. As of March 17, 2026, there are no part-time positions with
health insurance benefits that remains.
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L. BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES
I:ei111972111111111►1:11
The provision of City services in the most economical and effective manner requires a
balance between capital (with emphasis upon replacement of equipment and capital
projects involving maintenance and reconstruction) and operating expenditures. This
balance should be reflected in the budget each year.
M. USER CHARGES
DISCUSSiUN
User charges or fees represent a significant portion of the income generated to support
the operating budget. It is the policy that user charges or fees be established when
possible so those who benefit from a service or activity also help pay for it. Municipal
utility funds have been established for certain activities, which are intended to be self-
supporting Enterprise Funds. Examples of utility funds operating as Enterprise Funds
include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection
Fund, and Parking Fund. In other cases, a user charge is established after the City
Council determines the extent to which an activity must be self-supporting. Examples of
this arrangement are fees for swimming, golf, recreation programs, and certain
inspection programs such as rental inspections and building permits.
The Stormwater User Fund is fully funded by stormwater use fees. The General Fund
will continue to provide funding for the stormwater fee subsidies which provide a 50%
subsidy for the stormwater fee charged to property tax exempt properties and low -to -
moderate income residents and a 75% subsidy for residential farms. The General Fund
will also continue to provide funding for the refuse, water, and sanitary sewer fee
subsidies which provide a 50% subsidy for the fees charged to low -to -moderate income
residents.
UUiULUNE
User fees and charges should be established where possible so that those who utilize
or directly benefit from a service, activity or facility also help pay for it.
User fees and charges for each utility enterprise fund (Water User Fund, Sewer User
Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set
at a level that fully supports the total direct and indirect cost of the activity, including the
cost of annual depreciation of capital assets, the administrative overhead to support the
system and financing for future capital improvement projects.
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Activity
FY 2024 Actual
--Self-Supporting
FY 2025 Actual
FY 2026 Adopted
FY 2027 Rec'd
Adult Athletics
77.2%
84.3%
61.7%
59.0%
McAleece Concessions
114.5%
116.6%
115.3%
117.0%
Youth Sports
17.4%
16.8%
12.2%
16.3%
Therapeutic & After School
56.2%
12.8%
17.6%
21.1 %
Recreation Classes
100.2%
64.6%
66.2%
39.0%
Swimming
41.6%
44.1 %
40.0%
39.3%
Golf
107.9%
113.0%
94.5%
106.6%
Port of Dubuque Marina
75.5%
85.6%
81.2%
85.1 %
Park Division
17.5%
13.3%
17.2%
15.1 %
Library
1.2%
1.2%
1.1 %
1.0%
Airport
106.7%
88.2%
97.6%
97.6%
Building Inspections
106.7%
120.7%
96.5%
96.0%
Planning Services
62.7%
70.7%
45.2%
71.5%
Health Food/Environmental
Inspections
37.5%
48.8%
38.3%
41.8%
Animal Control
58.5%
57.8%
51.7%
51.9%
Housing - General Inspection
95.6%
1 143.7%
1 107.6%
1 90.70/(
Federal Building Maintenance
62.2%
83.2%
86.2%
N. ADMINISTRATIVE OVERHEAD RECHARGES
DISCUSSION
While the Enterprise Funds have contributed to administrative overhead, the majority
has been provided by the General Fund. This is not reasonable and unduly impacts
property taxes, which causes a subsidy to the Enterprise Funds. Prior to FY 2013, the
administrative overhead was charged by computing the operating expense budget for
each enterprise fund and dividing the result by the total City-wide operating expense
budget which resulted in the following percentages of administrative overhead charged
to each enterprise fund: Water 5.32%; Sanitary Sewer 4.84%; Stormwater 0.55%; Solid
Waste 2.83%; Parking 1.71 %; and Landfill 2.71 %. The adopted Fiscal Year 2013
budget changed the administrative overhead to be more evenly split between the
general fund and enterprise funds and is phased in over many years.
The Fiscal Year 2018 administrative overhead formula was recommended modified.
The modification removed Neighborhood Development, Economic Development and
Workforce Development from all recharges to utility funds. In addition, the Landfill
calculation is modified to remove Geographic Information Systems and Planning
Services. The Fiscal Year 2027 administrative overhead formula is recommended to be
modified to include the Landfill in Communication Department recharges.
In Fiscal Year 2027, the general fund is recommended to support $2,715,875 in
administrative overhead using the recharge method adopted in Fiscal Year 2013 and
revised in Fiscal Year 2018.
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GUIDELINE
Beginning in FY 2013, additional overhead recharges to the utility funds is being phased
in over several years. Engineering administrative and project management expenses
that are not recharged to capital projects will be split evenly between the Water, Sewer,
Stormwater and General Funds. Finance accounting expenses and all other
administrative departments such as Planning, City Clerk, Legal Services and City
Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse
Collection and General Funds, with overhead costs being shared by the Landfill and
Parking. This will be fully implemented over time.
Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development
and Workforce Development expenses will not be recharged to utility funds. In addition,
the Landfill will not be recharged GIS and Planning expenses. In Fiscal Year 2027, the
Communications Department is also recharged to the Landfill.
When the overhead recharges are fully implemented, the split of the cost of
administrative overhead excluding Engineering will be as follows:
Administrative Overhead Split
(Not including Engineering)
■ Water
■ Sewer
Stormwater
■ Refuse
■ Parking
■ Landfill
■ Genera I Fund
Engineering Administration &
Project Management
■ Gen era I
Fund
■ Water
Sewer
■ Stormwater
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The implementation percent of the administrative overhead recharges in Fiscal Year
2027 as compared to Fiscal Year 2026 is as follows:
100%
75%
50%
25%
Percent Implemented Administrative Overhead
100% 100% 100% 100% 97% 100%
FY27 FY26
Sanitary Sewer Stormwater Water
P9 Refuse Parking Landfill
O. OUTSIDE FUNDING
nISCUSSInN
The purpose of this guideline is to establish the policy that the City should aggressively
pursue outside funding to assist in financing its operating and capital budgets.
However, the long-term commitments required for such funding must be carefully
evaluated before any agreements are made. Commitments to assume an ongoing
increased level of service or level of funding once the outside funding ends must be
minimized.
GUIDELINE
To minimize the property tax burden, the City of Dubuque will make every effort to
obtain federal, state and private funding to assist in financing its operating and capital
budgets. However, commitments to guarantee a level of service or level of funding after
the outside funding ends shall be minimized. Also, any matching funds required for
capital grants will be identified.
P. GENERAL FUND OPERATING RESERVE (WORKING BALANCE)
DISCUSSION
An operating reserve or working balance is an amount of cash, which must be carried
into a fiscal year to pay operating costs until tax money, or other anticipated revenue
comes in. Without a working balance, there would not be sufficient cash in the fund to
meet its obligations and money would have to be borrowed. Working balances are not
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available for funding a budget; they are required for cash flow (i.e., to be able to pay
bills before taxes are collected).
Moody's Investor Service recommends a factor of 35 percent for "AX rated cities. In
January 2025, Moody's Investor Services affirmed the Aa2 credit rating on general
obligation bonds. Moody's credit analysis states, "the City of Dubuque's local economy
benefits from its role as a regional economic center, with solid resident income and full
value per capita. Financial operations are strong and will remain so despite declines in
fund balance over the next few years, as it expends funds from the pandemic. Long-
term liabilities and fixed cost ratios are moderate and will remain so despite future
borrowing needs." According to Moody's, the Aa2 issuer rating for the City of Dubuque's
bonds reflects the city's healthy economic base, which serves as a regional economic
center. Other rationale stated for the rating include full value per capita and adjusted
resident income are solid at around $109,000 and 98% respectively, though weaker
than Aa peers, in part because of a large student population, available fund balance
was strong at around 60% of revenue at the close of fiscal 2023 (year-end June 30),
and cash was stronger at 85% of revenue. The City's available fund balance will likely
remain well over 45%, despite some planned draws in fiscal 2024 and fiscal 2025 to
spend down federal funds from the pandemic. Despite the state adopting new property
tax restrictions, revenue raising flexibility remains strong because the City maintains
significant margin in its employee benefits fund and is not utilizing its emergency levy.
The long-term liabilities ratio will likely remain well under 300% inclusive of the current
issuances and future borrowing plans, and fixed -costs ratio will remain well below 20%.
In July 2023, Moody's Investor Service upgraded the City's outstanding general
obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment
Revenue bonds from A2 to 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.
In November of 2022, Moody's Investors Service ("Moodys") released a new rating
methodology for cities and counties. Two significant changes result from the new
methodology; cities are now assigned an issuer rating meant to convey the
creditworthiness of the issuer as a whole without regard to a specific borrowing, and
business -type enterprise funds are now being considered together with general fund
revenues and balances in the determination of financial performance.
Under the new methodology, there are two metrics that contribute to financial
performance. Available Fund Balance Ratio ("AFBR") _ (Available Fund Balance + Net
Current Assets/Revenue) and Liquidity Ratio ("LR") _ (Unrestricted Cash/Revenue). For
Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in
connection to its annual issuance of bonds. At that time, Moody's calculated the City's
AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations
were likely elevated due to unspent ARPA funds. The change in methodology will now
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consider revenues and net assets from business -type activities in these calculations. As
such, the City's general obligation rating will now be directly impacted by the financial
performance of enterprise funds. Establishing rates and charges adequate to provide
both debt service coverage and significant liquidity will be necessary to maintain the
City's ratings.
In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's
outstanding revenue bonds from 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.
Fiscal
Fund Reserve
Year
(As % of General
Fund revenues)
...
Calculation
Increase due to American Rescue Plan Act funds
received ($13.2 million), frozen positions and
FY 2021
40.72%
capital projects through Feb 2021.
Increase due to American Rescue Plan Act funds
received ($13.2 million), capital projects not
expended before the end of the FY, and vacant
FY 2022
49.16%
45.09%
positions.
Increase due to American Rescue Plan Act funds
not spent ($26.4 million), capital projects not
expended before the end of the FY, and vacant
FY 2023
55.82%
62.99 %
positions.
Decrease due to spend down of American Rescue
FY 2024
51.19%
62.41 %
Plan Act funds.
Decrease due to spend down of American Rescue
FY 2025
43.07%
58.14 %
Plan Act funds.
The City of Dubuque has historically adopted a general fund reserve policy as part of
the Fiscal and Budget Policy Guidelines which are adopted each year as part of the
budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve
Policy. Per the policy for the General Fund, the City will maintain a minimum fund
balance of at least 20 percent of the sum of (a) annual operating expenditures not
including interfund transfers in the General Fund less (b) the amounts levied in the Trust
and Agency fund and the Tort Liability Fund ("Net General Fund Operating Cost"). The
City may increase the minimum fund balance by a portion of any operating surplus
above the carryover balance of $200,000 that remains in the General Fund at the close
of each fiscal year. The City continued to add to the General Fund minimum balance
when additional funds were available until 20 percent of Net General Fund Operating
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Cost was reached in Fiscal Year 2017. During Fiscal Year 2024, the General Fund
minimum balance was increased to 25 percent.
After all planned expenditures in FY 2026, the City of Dubuque will have a general fund
reserve of 34.37% of general fund revenues as a percent of general fund revenues
computed by the accrual basis or 49.01 % 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 $32,347,743. 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.
CI iinFI INF
The guideline of the City of Dubuque is to maintain a General Fund working balance or
operating reserve of 25% (27% to maintain a margin of error of 2%) in FY 2026 and
beyond. In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2023. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has sustained a
greater than 20% reserve.
General Fund Reserve Projections:
Fiscal Year
FY2021
Contribution
$500,000
Spendable..Is
General Fund Cash
Reserve
$31,089,468
Projected
Revenue
40.72
. Ige
Metho
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
$415,247
$38,147,743
40.53 %
52.33 %
FY2026
$1,823,234
$32,347,743
34.37 %
49.01 %
FY2027
$
$25,412,743
27.00 %
45.03 %
FY2028
$
$25,412,743
27.00 %
41.06 %
FY2029
$
$26,388,917
27.00 %1
37.08
FY2030
$
$25,412,743
27.00 %1
35.65
* Capital projects and large equipment purchases that are not completed in the
year budgeted will temporarily increase the amount of fund balance remaining at the
end of the fiscal year. After resources are allocated to the next fiscal year to complete
unfinished capital projects and equipment purchases, any amount of general fund
reserve balance over 27% creates resources for additional capital projects or
other mid -year expenses.
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Q. STATE LEGISLATIVE ANTICIPATION RESERVE FUND
DISCUSSION
The State Legislative Anticipation Reserve Fund is a new fund and is being
established in Fiscal Year 2027 using $2.4 million $ .1 milli^„ -generated from the
repayment of internal loans to the City's General Fund from the Greater
Downtown TIF (GDTIF) Fund.
This reserve is being created in recognition of the significant property tax reform
proposals being considered during the current State legislative session. Because these
reforms could materially affect the City's future revenue structure, it is financially
prudent to maintain an additional reserve to help absorb any potential impacts.
Retaining this balance through the FY 2028 budget cycle ensures the City can respond
responsibly should legislative changes reduce or otherwise alter revenues.
The actual total repayment was $5.3 million with $1.2 million for property tax relief and
recurring improvement packages, $974,917 used to fund non -recurring General Fund
improvement requests and to make a $675,554 internal loan to the Refuse Collection
enterprise fund.
If the City Council elects to use any portion of the State Legislative Anticipation Reserve
Fund before FY 2028, such use must be limited strictly to non -recurring expenses. This
preserves the integrity of the reserve by ensuring one-time funds are not used to
support ongoing operational costs, maintaining long-term fiscal sustainability.
SIVIINDaRuiR
The guideline of the City of Dubuque is to maintain a State Legislative Anticipation
Reserve Fund through Fiscal Year 2028. The reserve balance is funded with one-time
revenue from the repayment of internal loans to the General Fund from the GDTIF Fund
in the amount of $4.1 million.
R. USE OF UNANTICIPATED, UNOBLIGATED, NONRECURRING
INCOME
7�Y�L�.9C�7�1
Occasionally, the City receives income that was not anticipated and was not budgeted.
Often, this money is non -recurring and reflects a one-time occurrence which generated
the unanticipated increase in income.
Non -recurring income generally will not be spent on recurring expenses. This would
result in a funding shortfall in the following budget year before even starting budget
preparation. However, eligible non -recurring expenditures would include capital
improvements and equipment purchases.
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Nonrecurring unobligated income shall generally only be spent for nonrecurring
expenses. Capital improvement projects and major equipment purchases tend to be
nonrecurring expenditures.
USE OF "UNENCUMBERED FUND BALANCES"
DISCUSSIO
Historically, 100% of a budget is not spent by the end of the fiscal year and a small
unencumbered balance remains on June 30th. In addition, income sometimes exceeds
revenue estimates or there are cost savings resulting in some unanticipated balances at
the end of the year. These amounts of unobligated, year-end balances are "carried
over" into the new fiscal year to help finance it.
The FY 2026 General Fund budget, which went into effect July 1, 2025, anticipated a
"carryover balance" of $200,000 or approximately 0.7 percent of the City tax asking. For
multi -year budget planning purposes, these guidelines assume a carryover balance of
$200,000 in FY 2027 through FY 2031.
GUIULLHIR
Carryover General Fund balance shall generally be used to help finance the next fiscal
year budget and reduce the demand for increased taxation. The available carryover
General Fund balance shall be anticipated not to exceed $200,000 for FY 2027 and
beyond through the budget planning period. Any amount over that shall usually be
programmed in the next budget cycle as part of the capital improvement budgeting
process.
T. PROPERTY TAX DISCUSSION
I. ASSUMPTIONS - RESOURCES
1. Local, Federal and State Resources
a. Cash Balance. Unencumbered funds or cash balances of $200,000 will be available
in FY 2027 and each succeeding year to support the operating budget.
b. Interest Revenue. Interest revenue decreased 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.
b. Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the
General Fund for property tax relief in FY 2027. 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, and then increase at
an annual rate of 2.00% percent per year beginning in FY 2028. The following chart
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Page 17
shows the past four years of actual sales tax funds and projected FY 2027 for the
General Fund:
Sales Tax
Funds IF
FY 2023
-
FY 0J&
FY 2025 JW
FY 2026 Ji,
FY 2027 A
PY 04
$ 475,037
$ 451,920
I $
574,416
I $ 635,746
I $
654,818
Quarter 1
$ 1,177,196
$ 1,545,777
$
1,592,834
$ 1,610,911
$
1,659,238
Quarter 2
$ 1,522,885
$ 1,596,421
$
1,605,397
$ 1,142,148
$
1,176,413
Quarter 3
$ 1,443,097
$ 1,524,508
$
1,490,640
$ 1,624,797
$
1,673,541
Quarter 4
$ 1,110,593
$ 979,209
$
969,694
$ 1,061,815
$
1,093,669
Reconciliation
$ 371,388
$ —
$
—
$ —
$
—
Total
$ 6,100,196
$ 6,097,835
$
6,232,981
$ 6,075,417
$
6,257,679
Change
1 -4.00%
-0.04%
+2.22%
-2.53%
+3.0
c. Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 5.00%
($167,843) over FY 2026 re -estimated receipts of $3,356,856, and then increase at an
annual rate of 3.00% per year.
d. FTA Revenue. Federal Transportation Administration (FTA) transit operating
assistance decreased from $598,167 in FY 2026 to $443,500 in FY 2027. The FY 2027
budget is based on the revised FY 2026 budget received from the FTA. Federal
operating assistance is based on a comparison of larger cities. Previously the allocation
was based on population and population density.
e. Ambulance Revenue. 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.
Ambulance Fees increased from $1,756,870 in FY 2026 to $2,778,351 in FY 2027
based on calculated projections using historical averages and Council approved
advanced life support and basic life support service fees to match the third -party cost
report. The FY 2025 actual was $2,026,670.
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.
f. Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth
per year over budgeted FY 2026.
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g. Building Fee Revenue. Building fees (Building Permits, Electrical Permits,
Mechanical Permits and Plumbing Permits) are anticipated to increase $56,927 from
$1,099,857 in FY 2026 to $1,156,784 in FY 2027.
h. DRA Revenue.
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.
The following is a ten-year history of DRA lease payments to the City of Dubuque:
1�iscall Year
FY 2027 Projected
DRA Lease Payments
$7,079,186
$ Change_JJV_ch_ang_�
$127,716
1.8%
FY 2026 Revised
$6,951,470
-$261,892
-3.6%
FY 2026 Budget
$7,213,362
$349,629
5.1 %
FY 2025 Actual
$6,863,733
$589,707
9.4%
FY 2024 Actual
$6,274,026
-$917,449
-12.8%
FY 2023 Actual
$7,191,475
$583,944
8.8%
FY 2022 Actual
$6,607,531
$2,645,535
66.8%
FY 2021 Actual
$3,961,996
-$1,187,192
-23.1 %
FY 2020 Actual
$5,149,188
$293,177
6.0%
FY 2019 Actual
$4,856,011
$18,879
0.4%
FY 2018 Actual
$4,837,132
-$195,083
-3.9%
FY 2017 Actual
$5,032,215
-$155,297
-3.0%
FY 2016 Actual
$5,187,512
-$158,104
-3.0%
The Diamond Jo payment related to the revised parking agreement increased from
$687,003 in FY 2026 to $731,657 in 2027 based on estimated Consumer Price Index
adjustment.
i. DRA Gaming.
The split of gaming revenues from taxes and the DRA lease (not distributions) in FY
2027 remains at a split of 100% operating and 0% capital. When practical in future
years, additional revenues will be moved to the capital budget from the operating
budget.
The following shows the annual split of gaming taxes and rents between operating and
capital budgets from FY2022— FY2027:
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FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Split of Gaming Tax + Revenue Between Operating & Capital Budgets
0%
0%
0%
0%
0%
0%
—% 10% 20% 30% 40% 50% 60% 70°ic, 80% 90% 100% 110%
Operatiny ;apuai
j. Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2027) and the
Diamond Jo parking privileges ($731,657 in FY 2027) have not been included in the
split with gaming revenues. This revenue is allocated to the operating budget.
2. Property Taxes
k. Residential Rollback. The residential rollback factor will decrease from 47.4316% in
2026 to 44.5345% or a 6.11 % decrease in FY 2027. The rollback has been estimated to
remain the same from Fiscal Years 2028 through 2031.
The percent of growth from revaluation is to be the same for agricultural and residential
property; therefore, if one of these classes has less than 3% growth for a year, the other
class is limited to the same percent of growth. A balance is maintained between the two
classes by ensuring that they increase from revaluation at the same rate. In FY 2027,
residential property had more growth than agricultural property which caused the
rollback factor to decrease.
Residential property was revalued by the City Assessor by neighborhood for the
January 1, 2025 property assessments, which impacts the Fiscal Year 2027 budget.
The average residential property value increased 8.50%. This revaluation of residential
property resulted in the taxable value for the average homeowner calculation to
increase from $93,207 to $94,952 (+1.87%).
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
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value in FY 2026 and $94,952 taxable value in 2027) results in more taxes to be paid
per $1,000 of assessed value. In an effort to keep property taxes low to the average
homeowner, the City calculates the property tax impact to the average residential
property based on the residential rollback factor and property tax rate. In a year that the
residential rollback factor increases, the City recommends a lower property tax rate than
what would be recommended had the rollback factor remained the same.
The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to
44.5345 percent in Fiscal Year 2027. The rollback percent had steadily decreased since
FY 1987, which has resulted in less taxable value and an increase in the City's tax rate.
However, that trend began reversing in FY 2009 when the rollback reached a low of
44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2026, the City's
tax rate would have been $6.18 per $1,000 of assessed value instead of $10.06 in FY
2026.
I. State Equalization Order/Property Tax Reform. There was not an equalization
order for commercial, industrial or multi -residential property in Fiscal Year 2027. The
Iowa Department of Revenue is responsible for "equalizing" assessments every two
years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide
basis.
Commercial property was revalued by the City Assessor for the January 1, 2025
property assessments, which impacts the Fiscal Year 2027 budget. The average
commercial and industrial property values increased 16%. This revaluation of
commercial property resulted in the taxable value for the average commercial
calculation to increase from $540,594 to $624,927 (+16%). This revaluation of industrial
property resulted in the taxable value for the average industrial calculation to increase
from $632,952 to $731,693 (+16%).
Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed
value; however due to legislative changes in FY 2013, a 95% rollback factor was
applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond.
The State of Iowa backfilled the loss in property tax revenue from the rollback 100% in
FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018
and beyond. The FY 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).
Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill
provides that beginning with the FY 2023 payment, the General Fund standing
appropriation for commercial and industrial property tax replacement for cities and
counties will be phased out in four or seven years, depending on how the tax base of
the city or county grew relative to the rest of the state since FY 2014. Cities and
counties where the tax base grew at a faster rate than the statewide average from FY
2014 through FY 2021 will have the backfill phased out over a four-year period from FY
2023 to FY 2026, while those that grew at a rate less than the statewide average will
have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The
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City of Dubuque's tax base grew at a rate less than the statewide average and will have
a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in
FY 2023, the backfill will be eliminated over a eight year period.
The projected reduction of State backfill revenue to only the general fund is as follows:
2027
LIMOLO
-$97,981
2028
-$97,981
2029
-$97,981
2030
-$97,981
Total
-$391,924
Business Property Tax Credit Law Changes and Implementation of Two -Tier
Assessment Limitations
From FY 2015 through FY 2023, commercial, industrial and railroad properties were
eligible for a Business Property Tax Credit. The Business Property Tax Credit was
deducted from the property taxes owed and the credit was funded by the State of Iowa.
The average commercial and industrial properties ($432,475 Commercial / $599,500
Industrial) received a Business Property Tax Credit from the State of Iowa for the City
share of their property taxes of $148 in FY 2015, $693 in FY 2016, $982 in FY 2017,
$959 in FY 2018, $843 in FY 2019, $861 in FY 2020, $779 in FY 2021, $780 in FY
2022, and $722 in FY 2023.
House File 2552, Division 11 passed in the 2022 legislative session and signed by the
Governor on May 2, 2022 repeals the Business Property Tax Credit (BPTC). In lieu of
the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad
properties will receive a property assessment limitation on the first $150,000 of value of
the property unit equal to the assessment limitation for residential property. The value of
the property unit that exceeds $150,000 receives the same ninety percent assessment
limitation it has in the past.
The $125 million fund will continue to be appropriated each year for reimbursements to
counties. County auditors will file a claim for the first tier of the assessment limitations in
September. Assessors will continue to provide the unit configuration for auditors as
these definitions remained the same. Taxpayers are not required to file an application to
receive the first $150,000 of assessed value at the residential assessment limitation
rate.
If the total for all claims is more than the appropriated amounts, the claims will be
prorated and the Iowa Department of Revenue will notify the county auditors of prorated
percentage by September 301h. 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.
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The projected backfill for Dubuque for the first -tier assessment limitation in FY27
is estimated to be $170,000.
m. Multi -Residential Property Class/Eliminated State Shared Revenue.
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi -residential, which requires a rollback, or
assessment limitations order, on multi -residential property which will eventually equal
the residential rollback. Multi -residential property includes apartments with 3 or more
units. Rental properties of 2 units were already classified as residential property.
The State of Iowa did not backfill property tax loss from the rollback on multi -residential
property. The rollback occurred as follows -
Fiscal Year
Rollback
Revenue
FY 2017 86.25% $331,239
FY 2018 82.50% $472,127
FY 2019 78.75% $576,503
FY 2020 75.00% $691,640
FY 2021 71.25% $952,888
FY 2022 67.50% $752,366
FY 2023 63.75% $662,821
FY 2024 54.65% $1,186,077
Total $5 625 661
This annual loss in tax revenue of $1,186,077 from multi -residential property was
not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the
City lost $5,625,661 in total, meaning landlords paid that much less in property taxes.
The state did not require landlords to charge lower rents or to make additional
investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class, so the City continues to lose these
revenues.
State Shared Revenue Eliminations
In addition, the State of Iowa eliminated the:
a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000)
b. Personal Property Tax Replacement in FY 2004 (-$350,000)
c. Municipal Assistance in FY 2004 (-$300,000)
d. Liquor Sales Revenue in FY 2004 (-$250,000)
e. Bank Franchise Tax in FY 2005 (-$145,000)
f. Alcohol License Revenue in FY 2023 (-$85,000)
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This annual loss in tax revenue of $1,186,077 from multi -residential property was
not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the
City lost $5,625,661 in total, meaning landlords paid that much less in property taxes.
The state did not require landlords to charge lower rents or to make additional
investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class, so the City continues to lose these
revenues.
State Shared Revenue Eliminations
In addition, the State of Iowa eliminated the:
a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000)
b. Personal Property Tax Replacement in FY 2004 (-$350,000)
c. Municipal Assistance in FY 2004 (-$300,000)
d. Liquor Sales Revenue in FY 2004 (-$250,000)
e. Bank Franchise Tax in FY 2005 (-$145,000)
f. Alcohol License Revenue in FY 2023 (-$85,000)
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The combination of the decreased residential rollback, State funding cuts and increased
expenses has forced the City's tax rate to increase since 1987 when the residents
passed a referendum to establish a one percent local option sales tax with 50% of the
revenue going to property tax relief.
n. Taxable Value. FY 2027 will reflect the following impacts of taxable values of various
property types:
Property.- Percent
Residential Includes Multi -Residential
Changein Taxable Value
+3.51 %
Commercial
+15.63 %
Industrial
+8.22 %
Overall
+5.89 %
*Overall taxable value increased 5.89% percent after deducting Tax Increment
Financing values
Assessed valuations were increased 2 percent per year beyond FY 2027.
o. Greater Downtown Tax Increment Financing
• 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. $1.2 million of
the reoavment is recommended to be used for aeneral Droaerty tax relief and
recurring improvement packages in the general fund$! million of the repaymen
is ronnmmonrlorl to he used for general nreperty 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. $675,554 will be used as an internal loan to the Refuse Collection
enterprise 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.
• 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.
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p. Riverfront Property Lease Revenue. 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.
3. Fees, Tax Rates & Services
q. Franchise Fees. 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%. The franchise fee revenues are projected to increase at an
annual rate of 4 percent per year from FY 2028 through FY 2031.
The City provides franchise fee rebates to gas and electric customers who are exempt
from State of Iowa sales tax. Franchise fee rebates are provided at the same exemption
percent as the State of Iowa sales tax exemption indicated on the individual gas and or
electric bill. To receive a franchise fee rebate, a rebate request form must be completed
by the customer, the gas and/or electric bill must be attached, and requests for rebates
for franchise fees must be submitted during the fiscal year in which the franchise fees
were paid except for June.
The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal
maximum, on June 1, 2015.
r. Property Tax Rate. For purposes of budget projections only, it is assumed that City
property taxes will continue to increase at a rate necessary to meet additional
requirements over resources beyond FY 2027.
s. Police & Fire Protection. FY 2027 reflects the fifteenth year that payment in lieu of
taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection.
In FY 2027, the Sanitary Sewer fund is charged 0.43% of building value and the Water
fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire
Protection. This revenue is reflected in the General Fund and is used for general
property tax relief.
II. ASSUMPTIONS — REQUIREMENTS
a. Pension Systems.
• The Municipal Fire and Police Retirement System of Iowa (MFPRSI) Board of
Trustees City contribution for Police and Fire retirement 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 savings of $151,840).
• The Iowa Public Employee Retirement System (IPERS) City contribution is
unchanged from the FY 2026 contribution rate of 9.44% (no general fund
impact). The IPERS employee contribution is unchanged from the FY 2026
contribution rate of 6.29% (which does not affect the City's portion of the budget).
The IPERS rate is anticipated to increase 1 percent each succeeding year.
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b. Collective Bargaining and Non -Represented. 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 $2,675,126 to the General Fund.
c. 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 $421,050 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 were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031
were increased 5.38%. Effective January 1, 2027, employee contributions will increase.
d. Five -Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible
retirees with at least twenty years of continuous service in a full-time position or
employees who retired as a result of a disability and are eligible for pension payments
from the pension system can receive payment of their sick leave balance with a
maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick
leave payout expense budget in the General Fund in FY 2026 was $288,742 as
compared to FY 2027 of $228,836, based on qualifying employees officially giving
notice of retirement.
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e. 50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap
can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick
leave payout expense budget in the General Fund in FY 2026 was $128,496 as
compared to FY 2027 of $141,764, based on FY 2026 year-to-date expense.
f. Parental Leave. Effective March 8, 2019, employees may use Parental leave to take
paid time away from work for the birth or the adoption of a child under 18 years old.
Eligible employees receive their regular base pay (plus longevity) and benefits for
twelve weeks following the date of birth, adoption event or foster -to -adopt placement. If
both parents are eligible employees, each receive the leave benefit. There is no
parental leave expense budgeted in the General Fund based on departments covering
parental leave with existing employees and not incurring additional cost for temporary
help.
f. Supplies & Services. General operating supplies and services are estimated to
increase 2% over actual in FY 2025. A 2% increase is estimated in succeeding years.
g. Electricity. Electrical energy expense is estimated to increase 4% over FY 2025
actual expense, then 2% per year beyond.
h. Natural Gas. Natural gas expense is based on FY 2025 actual then 2% per year
beyond.
i. Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will
continue at 50% of actual hotel/motel tax receipts.
j. Equipment & Machinery. Equipment costs for FY 2027 are estimated to decrease
14.60% under FY 2026 budget based on equipment replacement schedules, then
remain constant per year beyond.
k. Debt Service. Debt service is estimated based on the tax -supported, unabated
General Obligation bond sale for fire truck and franchise fee litigation settlement.
I. Unemployment. Unemployment expense in the General Fund decreased from
$23,824 in FY 2026 to $27,007 in FY 2027 based on estimated premium for FY2026.
m. Motor Vehicle Fuel. Motor vehicle fuel is estimated to decrease 30% under the FY
2026 budget based on the City fuel island fully operational in FY 2027and no longer
purchasing from retail gas stations, then increase 2.0% per year beyond.
n. Motor Vehicle Maintenance. Motor vehicle maintenance is based on the FY 2026
budget, then increase 2.0% per year and beyond.
o. Public Transit. 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); a decrease in Federal Transportation Administration
Capital ($344,329), an increase in employee expense ($120,888); decrease in supplies
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and services ($114,293); a reduction in equipment replacements ($99,615), a decrease
in passenger fare revenue ($2,579).
The following is a ten-year history of the Transit subsidy:
Fiscal Year
2027 Projection
Amount
$2,243,174
% Change
16.39 %
2026 Budget
$1,927,336
1.74 %
2025 Actual
$1,961,488
26.70 %
2024 Actual
$1,548,127
1.52 %
2023 Actual
$1,571,981
(1.83)%
2022 Actual
$1,601,290
2.09 %
2021 Actual
$1,635,441
4.94 %
2020 Actual
$1,558,460
0.82 %
2019 Actual
$1,571,307
(0.10)%
2018 Actual
$1,572,825
34.10 %
2017 Actual
1 $1,172,8851
24.41 %
2016 Actual
1 $942,752
13.00 %
q. Shipping & Postage. Postage rates for FY 2027 are estimated to increase 5% over
FY 2025 actual expense and proposed cost increases by United States Postal Service.
A 3.0 percent increase is estimated in succeeding years.
r. Insurance. Insurance costs are estimated to change as follows:
• Workers Compensation is decreasing 44.18% based on rate change.
• General Liability is decreasing 3.06% based on rate change.
• Damage claims is decreasing 6.86% based on a three year average.
• Property insurance is increasing based on FY 2026 actual over 2%.
s. Housing. The Housing Choice Voucher subsidy payment from the General Fund is
estimated to increase $130,684 in FY 2027. The budgeted administrative cost of the
Housing Choice Voucher Program increased from $1,129,462 in FY 2026 to $1,187,395
in FY 2027. Administrative revenue of the Housing Choice Voucher Program decreased
from $912,012 in FY 2026 to $825,384 in FY 2027. The resulting Housing Choice
Voucher Program deficit increased from $217,450 in FY 2026 to $362,011 in FY 2027.
This deficit is funded by property taxes.
t. Communications Department. In Fiscal Year 2026, Cable Utility Franchise Tax
revenue paid to the City by Mediacom and ImOn, as required by the state franchise fee
agreement, was no longer be enough to support Communications Department
employee expense. A vacant part-time (0.75 FTE) Communications Assistant position
was recommended to be eliminated. All remaining Cable Utility Franchise Tax
supported positions were recommended to be moved to the General Fund. This
General Fund expense will be partially offset by administrative overhead recharges to
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the enterprise funds. The Cable Utility Franchise Tax revenue will support
Communications Department supplies and services only going forward.
Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and
Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is
expended, the City will be responsible for all City Media Service equipment replacement
costs. Other jurisdictions will need to plan accordingly.
u. Greater Dubuque Development Corporation. Greater Dubuque Development
Corporation support of $836,135 is budgeted to be paid mostly from Dubuque Industrial
Center Land Sales in FY 2027, with $26,500 for Targeted Neighborhood Reinvestment
strategy paid from the Greater Downtown TIF. In FY 2028 and beyond Greater
Dubuque Development Corporation will be paid from the Greater Downtown TIF and
Dubuque Industrial Center West land sales.
V.
PROPERTY TAX IMPACT
The recommended Fiscal Year 2027 property tax rate increased 1.38% and will have
the following impact:
Property
Properties
Properties
Property Tax
Property Tax
Change
Change
Residential:
Payment
$888.20
Payment
$915.88
+$26.68
+3.0%
Avg. value - $213,211
Commercial:
$716.01
$679.03
-$36.98
-5.2%
$150,000 value & below
433
381
Commercial:
$2,074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
232
225
Commercial:
$3,433.21
$3,423.53
-$9.38
-0.3%
$300,001-$450,000
147
167
Commercial:
$4,253.76
$5,023.83
+$770.07
+18.1 %
Avg. Value = $624,927
588
636
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Property
Properties..erties
Property Tax
Property
Industrial:
Payment
$716.01
Payment
$679.03
-$36.98
-5.2 %
$150,000 value & below
8
8
Industrial:
$2,074.61
$2,051.29
-$23.32
-1.1 %
$150,001-$300,000 value
11
9
Industrial:
$3,433.21
$3,423.53
-$0.28
-0.3 %
$300,001-$450,000
4
3
Industrial:
$5,090.27
$6,000.56
$910.29
+17.9 %
Avg. Value = $731,6931ndustrial:
.Avg -.Value - $624 a27-
58
58
Historical Impact on Tax Askings and Average Residential Property Tax Rates
The following is a historical City tax rate comparison. The average percent change in
tax rate from 1987-2027 is-0.83%. The average annual change over the last five years
is +0.56%.
The following pages show historical and projected property tax impacts.
Page 146 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 30
FY 1987
FY 1988
FY 1989
FY 1990
FY 1991
FY 1992
FY 1993
FY 1994
FY 1995
FY 1996
FY 1997
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024
FY2025
FY2026
FY2027
Historical Impact on Tax Askings & Average Residential Property Tax Rates
% Change in Tax Rate City Tax Rate
$— $2.00 $4.00 $6.00 $8.00 $10.00 S12.00 S14.00 S16.00
(17.50)% (15.00)% (12.50)% (10.00)% (7.50)% (5.00)% (2.50)% —% 2.50% 5.00%
Page 147 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 31
Historical City tax rates and % change in tax rate:
Fiscal Year
FY 1987
City Tax Rate
14.5819
-
% . in Tax Rate
FY 1988
13.9500
-4.33%
FY 1989
11.8007
-15.41 %
FY 1990
11.6891
-0.95%
FY 1991
12.2660
+4.94%
FY 1992
12.7741
+4.14%
FY 1993
12.4989
-2.15%
FY 1994
12.6059
+0.86%
FY 1995
11.7821
-6.54%
FY 1996
11.7821
0.00%
FY 1997
11.3815
-3.40%
FY 1998
11.4011
+0.17%
FY 1999
11.0734
-2.87%
FY 2000
10.7160
-3.23%
FY 2001
11.0671
+3.28%
FY 2002
10.7608
-2.77%
FY 2003
10.2120
-5.10%
FY 2004
10.2730
+0.60%
FY 2005
10.0720
-1.96%
FY 2006
9.6991
-3.70%
FY 2007
9.9803
+2.90%
FY 2008
10.3169
+3.37%
FY 2009
9.9690
-3.37%
FY 2010
9.8577
-1.12%
FY 2011
10.0274
+1.72%
FY 2012
10.4511
+4.23%
FY 2013
10.7848
+3.19%
FY 2014
11.0259
+2.24%
FY 2015
11.0259
0.00%
FY 2016
11.0259
0.00%
FY 2017
11.1674
+1.28%
FY 2018
10.8922
-2.46%
FY 2019
10.5884
-2.79%
FY 2020
10.3314
-2.43%
FY 2021
10.1440
-1.81 %
FY 2022
9.8890
-2.51 %
FY 2023
9.7169
-1.74%
FY 2024
9.9014
+1.90%
FY 2025
9.9264
+0.25%
FY 2026
10.0637
+1.38%
Page 148 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 32
Fiscal Year City Tax Rate % Change in Tax Rat
FY 2027
10.1648 +1.00%
1987 - 2027 Average Change -0.83%
2023-2027 Average Change +0.56%
From Fiscal Year 1987 through Fiscal Year 2027, the average annual change in the
property tax rate is a decrease of 0.83%. Over the last five years, the average annual
change in the property tax rate is a decrease of 0.56%.
Projected Impacts on Tax Askings and Average Residential Property Tax Rates
Page 149 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 33
Project Impacts on Tax Askings & Average Residential Property Tax Rates
8.00% $16.00
6.00%
4.00%
2.00%
$12.00
$8.00
$4.00
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
% Change in Tax Rate City Tax Rate
Project Impacts on Tax Askings & Average Residential Property Tax Rates
4.00% $12.00
3.00% $9.00
1) nnoi Qc nn
i. w
FY 2027 FY 2028 FY 2029
% Change in Tax Rate
Projected City tax rates and % change in tax rate*:
FY 2030 FY 2031
City Tax Rate
Page 150 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 34
Fiscal Year
FY 2027
City Tax Rate
10.1648
% Change in Tax Rate
1.00%
FY 2028
4n� o.4 910.8757
4-$4°1e6.99%
FY 2029
40.544011.0575
a-86°,�1.67%
FY 2030
n�211.2837
2.05%
FY 2031
211.5768
2 8k2.60%
Page 151 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 35
IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE
FY 1989 "City" Property Tax
•
$453.99
.-
-11.40%
.-.
.-
FY 1990
"City" Property Tax
$449.94
-0.89%
-$4.04
FY 1991*
"City" Property Tax*
$466.92
+3.77%
$16.98
FY 1992
"City" Property Tax
$483.63
+3.58%
$16.71
FY 1993*
"City" Property Tax*
$508.73
+5.19%
$25.10
FY 1994
"City" Property Tax
$510.40
+0.33%
$1.51
FY 1995*
"City" Property Tax*
$522.65
+2.40%
$12.41
FY 1996
"City" Property Tax
$518.10
-0.87%
-$4.54
FY 1997*
"City" Property Tax*
$515.91
-0.42%
-$2.19
FY 1998
"City" Property Tax
$512.25
-0.71 %
-$3.66
FY 1999
"City" Property Tax*
$512.25
0.00%
$0.00
FY 2000
"City" Property Tax
$511.38
-0.17%
-$0.87
FY 2001
"City" Property Tax
$511.38
0.00%
$0.00
FY 2002
"City" Property Tax
$511.38
0.00%
$0.00
FY 2003
"City" Property Tax*
$485.79
-5.00%
-$25.58
FY 2004
"City" Property Tax
$485.79
0.00%
$0.00
With Homestead Adj.
$493.26
+1.54%
$7.46
FY 2005
"City" Property Tax*
$485.93
+0.03%
$0.14
With Homestead Ad'.*
$495.21
+0.40%
$1.95
FY 2006
"City" Property Tax 1
$494.27
+1.72%
$8.34
With Homestead Adj. (1)
$504.62
+1.90%
$9.41
FY 2007
"City" Property Tax* 2
$485.79
-1.72%
-$8.48
With Homestead Adj.*
$496.93
-1.52%
-$7.69
FY 2008
"City" Property Tax
$496.93
0.00%
$0.00
With Homestead Adj.
$510.45
+2.72%
$13.52
FY 2009
"City" Property Tax
$524.53
+2.76%
$14.08
With Homestead Adj.
$538.07
+5.41 %
$27.62
FY 2010
"City" Property Tax
$538.07
0.00%
$0.00
With Homestead Adj.
$550.97
+2.40%
$12.90
FY 2011
"City" Property Tax
$564.59
+2.47%
$13.62
With Homestead Adj. 3
$582.10
+5.65%
$31.13
FY 2012
"City" Property Tax
$611.19
+5.00%
$29.09
With Homestead Adj. (3)
$629.78
+8.19%
$47.68
FY 2013
"City" Property Tax
$661.25
+5.00%
$31.47
With Homestead Adj. (3)
$672.76
+6.82%
$42.98
FY 2014
"City" Property Tax
$705.71
+4.90%
$32.95
FY 2015
"City" Property Tax
$728.48
+3.23%
$22.77
FY 2016
"City" Property Tax
$747.65
+2.63%
+$19.17
FY 2017
"City" Property Tax
$755.70
+1.08%
$8.05
FY 2018
"City" Property Tax
$755.70
0.00%
$0.00
FY 2019
"City" Property Tax
$770.17
+1.91%1
$14.47
Page 152 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 36
- Historicaa
FY 2020 "City" Property Tax
City Tax
Calculation
$770.17
Percent
ChangeActual
0.00%
ChangeActual
HTC 00%
Funded
Dollar
Change
$0.00
FY 2021
"City" Property Tax
$769.08
-0.14%
-$1.09
FY 2022
"City" Property Tax
$769.08
0.00%
$0.00
FY 2023
"City" Property Tax
$791.82
+2.96%
+$22.74
FY 2024
"City" Property Tax
$815.07
+2.94%
+$23.25
FY 2025
"City" Property Tax
$855.82
+5.00%
+$40.75
FY 2026
1 "City" Property Tax
$889.20
+3.90%
+$33.38
Average FY1989-FY2026 with Homestead Adj. +1.52%
Average FY2022-FY2026 with Homestead Adj. +2.96%
Average FY1989-FY2026 without Homestead Adj.
+1.04%
+$9.92
+$24.02
+$7.32
The average annual dollar change in residential property tax from 1989-2026 is an
increase of $9.92. The average annual dollar change over the last five years is an
increase of $24.02.
Projected impact on average residential property:
PROJECTI
"City" Property Tax
CITY TAX PERCENT
CA•CHANGE
$915.87
DOLLAR
+3.00% +$26.67
FY 2027
FY 2028
"City" Property Tax
$979.93$432-.7-3
+6.99%+$64.066
FY 2029
"City" Property Tax
$996.31$950-03
+1.67%+$16.38 9
FY 2030
"City" Property Tax
$1,016.69QQ�3
+1.67%+$20.389
FY 2031
"City" Property Tax
1 $1,043.09$ 6
+2.32%+$23.59*U3-59
* Denotes year of State -issued equalization orders.
^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%.
(1) The FY 2006 property tax calculation considers the 6.2% valuation increase for the average
residential homeowner as determined by the reappraisal.
(2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006.
(3) The City adopted a budget in FY 2011 and 2012 that provided no increase to the average
homeowner. The State of Iowa underfunded the Homestead Property Tax Credit in both years
costing the average homeowner an additional $18.59 in FY 2012 and $11.51 in FY 2013. This
provided no additional revenues to the City, as this money would have come to the City from the
State if they appropriated the proper amount of funds.
Page 153 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 37
Homestead Property Tax Credit
The Homestead Property Tax Credit was established by the state legislature to reduce the
amount of property tax collected. The intent of the credit was to be a form of tax relief and
provide an incentive for home ownership. The State Homestead Property Tax Credit works by
discounting the tax collected on the first $4,850 of a property's taxable value. This has no
impact on what the City receives from property tax collections, but provides tax relief for the
average homeowner.
Beginning FY 2004, the State of Iowa did not fully fund the State Homestead Property Tax
Credit resulting in the average homeowner paying the unfunded portion. Again, this has no
impact on what the City receives, however as a result has caused the average homeowner to
pay more taxes.
Historical Percent of Iowa Homestead Property Tax Credit Funded by the State of
Iowa
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
85%
81%
78%
77%
73%
72%
72%
64%
62%
7R%,
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
—% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percent Funded
Page 154 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 38
IMPACT ON COMMERCIAL PROPERTY - EXAMPLE
•- •.:j:41j1�;jwj6w1
-m
$2,106.42
1 An
-$384.19-15.43%
FY 1989
"City" Property Tax
FY 1990
"City" Property Tax
$2,086.50
-$19.92
-0.95%
FY 1991
"City" Property Tax
$2,189.48
+$102.98
+4.94%
FY 1992
"City" Property Tax
$2,280.18
+$90.70
+4.14%
FY 1993
"City" Property Tax
$2,231.05
-$49.13
-2.15%
FY 1994
"City" Property Tax
$2,250.15
+$19.10
+0.86%
FY 1995
"City" Property Tax
$2,439.60
+$189.45
+8.42%
FY 1996
"City" Property Tax
$2,439.60
$0.00
0.00%
FY 1997
"City" Property Tax
$2,659.36
+$219.76
+9.01 %
FY 1998
"City" Property Tax
$2,738.43
+$79.07
+2.97%
FY 1999
"City" Property Tax
$2,952.03
+$213.60
+7.80%
FY 2000
"City" Property Tax
$2,934.21
-$17.82
-0.60%
FY 2001
"City" Property Tax
$2,993.00
+$58.86
+2.00%
FY 2002
"City" Property Tax
$2,910.25
-$82.84
-2.76%
FY 2003
"City" Property Tax
$3,186.27
+$276.03
+9.48%
FY 2004
"City" Property Tax
$3,278.41
+$92.15
+2.89%
FY 2005
"City" Property Tax
$3,349.90
+$71.48
+2.18%
FY 2006
"City" Property Tax (1)
$3,152.52
-$197.38
-5.89%
FY 2007
"City" Property Tax
$3,538.03
+$385.50
+12.23%
FY 2008
"City" Property Tax
$3,688.64
+$150.62
+4.26%
FY 2009
"City" Property Tax
$3,554.71
-$133.94
-3.63%
FY 2010
"City" Property Tax
$3,524.48
-$30.23
-0.85%
FY 2011
"City" Property Tax
$3,585.16
+$60.68
+1.72%
FY 2012
"City" Property Tax
$3,736.64
+$151.48
+4.23%
FY 2013
"City" Property Tax
$3,855.96
+$119.32
+3.19%
FY 2014
"City" Property Tax
$3,942.14
+$86.20
+2.23%
FY 2015
"City" Property Tax (2)
$3,896.93
$147.72
-$45.21
-1.15%
FY 2016
"City" Property Tax (3)
$3,139.16
$692.62
-$757.77
-19.45%
FY 2017
"City" Property Tax (4)
$3,364.61
$982.19
+$225.45
+7.18%
FY 2018
"City" Property Tax (5)
$3,280.44
$959.11
-$84.16
-2.50%
FY 2019
"City" Property Tax (6)
$3,278.23
$843.08
-$2.21
-0.07%
FY 2020
"City" Property Tax (7)
$3,160.71
$860.57
-$117.52
-3.58%
FY 2021
"City" Property Tax (8)
$3,169.30
$779.03
+$8.59
+0.27%
FY 2022
"City" Property Tax (9)
$3,069.57
$779.50
-$99.73
-3.15%
FY 2023
"City" Property Tax
$3,060.34
$721.73
-$9.23
-0.30%
FY 2024
"City" Property Tax
$3,328.86
+$268.52
+8.77%
FY 2025
"City" Property Tax
$4,179.49
+$850.63
+25.55%
FY 2026
"City" Property Tax
$4,253.76
+$74.27
+1.78%
FY 1989-2026 Average Change
+$46.40
+1.67%
Page 155 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 39
The average annual dollar change in commercial property taxes from 1989-2026 is a
increase of $46.40. The average annual dollar change over the last five years is a
increase of +$216.89.
Projected impact on average commercial property:
PROJECTEDDOLLAR
FY 2027
JW
"City" Property Tax
CALCULATIO
$5,023.81
+$770.05
PERCENT
+18.10%
FY 2028
"City" Property Tax
$5,375.16$-5-
+ 351.35
+6.99%
FY 2029
"City" Property Tax
5 465.02$5,24
+ 89.86$
+1.67%
FY 2030
"City" Property Tax
$5,465.02$5- 24+$89.86
+1.64%
FY 2031
I "City" Property Tax
5 721.66$
+ 144.85
I
(1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023.
(11)From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible
for a Business Property Tax Credit. The Business Property Tax Credit was deducted from
the property taxes owed and the credit was funded by the State of Iowa. Beginning in FY
2024, all commercial, industrial, and railroad properties will receive a property assessment
limitation on the first $150,000 of value of the property unit equal to the assessment
limitation for residential property. The value of the property unit that exceeds $150,000
receives the same ninety percent assessment limitation it has in the past.The $125 million
fund will continue to be appropriated each year for reimbursements to counties. County
auditors will file a claim for the first tier of the assessment limitations in September.
Assessors will continue to provide the unit configuration for auditors as these definitions
remained the same. Taxpayers are not required to file an application to receive the first
$150,000 of assessed value at the residential assessment limitation rate. Lawmakers
believe the new standing general fund will exceed the projected level of claims for fiscal
years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement
claims will begin being prorated. The projected backfill for Dubuque for the two-tier
assessment limitation in Fiscal Year 2024 is estimated to be $587,446.
Page 156 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 40
IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE
rCTUAL - HISTORIC..Illm
r-CITY TAX
CALCULATION
A
BUSINESS
PROPERTY TAJDOLLAR
CREDIT
CHANGEALCHANGE
PERCENT
FY 1989
"City" Property Tax
$5,900.35
-$1,074.65
-15.40%
FY 1990
"City" Property Tax
$5,844.55
-$55.80
-0.95%
FY 1991
"City" Property Tax
$6,133.00
+$288.45
+4.94%
FY 1992
"City" Property Tax
$6,387.05
+$254.05
+4.14%
FY 1993
"City" Property Tax
$6,249.45
-$137.60
-2.15%
FY 1994
"City" Property Tax
$6,302.95
+$53.50
+0.86%
FY 1995
"City" Property Tax
$5,891.05
-$411.90
-6.54%
FY 1996
"City" Property Tax
$5,891.05
$0.00
0.00%
FY 1997
"City" Property Tax
$5,690.75
-$200.30
-3.40%
FY 1998
"City" Property Tax
$5,700.56
+$9.81
+0.17%
FY 1999
"City" Property Tax
$5,536.70
-$163.86
-2.87%
FY 2000
"City" Property Tax
$5,358.00
-$178.70
-3.23%
FY 2001
"City" Property Tax
$5,533.00
+$175.00
+3.27%
FY 2002
"City" Property Tax
$5,380.42
-$152.58
-2.76%
FY 2003
"City" Property Tax
$5,106.00
-$274.42
-5.10%
FY 2004
"City" Property Tax
$5,136.50
+$30.50
+0.60%
FY 2005
"City" Property Tax
$5,036.00
-$100.50
-1.96%
FY 2006
"City" Property Tax (1)
$5,814.61
+$778.61
+15.46%
FY 2007
"City" Property Tax
$5,983.21
+$168.60
+2.90%
FY 2008
"City" Property Tax
$6,184.95
+$201.74
+3.37%
FY 2009
"City" Property Tax
$5,976.44
-$208.51
-3.37%
FY 2010
"City" Property Tax
$5,909.69
-$66.75
-1.12%
FY 2011
"City" Property Tax
$6,011.44
+$101.75
+1.72%
FY 2012
"City" Property Tax
$6,265.43
+$253.99
+4.23%
FY 2013
"City" Property Tax
$6,465.48
+$200.05
+3.19%
FY 2014
"City" Property Tax
$6,610.00
+$144.52
+2.24%
FY 2015
"City" Property Tax (2)
$6,131.80
$147.72
-$478.20
-7.23%
FY 2016
"City" Property Tax (3)
$5,256.41
$692.62
-$875.39
-14.28%
FY 2017
"City" Property Tax (4)
$5,043.36
$982.19
-$213.05
-4.05%
FY 2018
"City" Property Tax (5)
$4,917.78
$959.11
-$125.58
-2.49%
FY 2019
"City" Property Tax (6)
$4,869.91
$843.08
-$47.87
-0.97%
FY 2020
"City" Property Tax (7)
$4,713.76
$860.57
-$156.15
-3.21 %
FY 2021
"City" Property Tax (8)
$4,694.17
$779.03
-$19.59
-0.42%
FY 2022
"City" Property Tax (9)
$4,556.11
$779.50
-$138.06
-2.94%
FY 2023
"City" Property Tax
$4,521.00
$721.73
-$35.11
-0.77%
FY 2024
"City" Property Tax
$4,817.26
+$296.26
+6.55%
FY 2025
"City" Property Tax
$4,179.49
-$637.77
-13.24%
FY 2026
1 "City" Property Tax
$5,090.27
+$85.68
+2.05%
FY 1989-2027 Average Change
-$71.31
-1.13%
Page 157 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 41
1 2023-2027 Average Change) 1-$72.74 1 -1.35%
*Net of Business Property Tax Credit
The average annual dollar change in industrial property taxes from 1989-2026 is a
decrease of $71.31. The average annual dollar change over the last five years is a
decrease of $72.74.
Projected impact on average industrial property:
PROJECIIIWWCITY
FY 2027
"City" Property Tax
TAX
$6,000.54
DOLLAR
+$910.29
+17.887/0
FY 2028
"City" Property Tax
$6,42L19$15,� + 419.65-
+6.99 %
FY 2029
"City" Property Tax
$6,527.527
+$107.33
+1.67%
FY 2030
"City" Property Tax
6 661.05$-�40-5
+ 133.53
+2.05%
FY 2031
"City" Property Tax
$6,834.06$&,-5-57
+$173.01
+2.60%
(1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023.
(11) From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible
for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the
property taxes owed and the credit was funded by the State of Iowa. Beginning in FY 2024, all
commercial, industrial, and railroad properties will receive a property assessment limitation on
the first $150,000 of value of the property unit equal to the assessment limitation for residential
property. The value of the property unit that exceeds $150,000 receives the same ninety
percent assessment limitation it has in the past.The $125 million fund will continue to be
appropriated each year for reimbursements to counties. County auditors will file a claim for the
first tier of the assessment limitations in September. Assessors will continue to provide the unit
configuration for auditors as these definitions remained the same. Taxpayers are not required to
file an application to receive the first $150,000 of assessed value at the residential assessment
limitation rate. Lawmakers believe the new standing general fund will exceed the projected level
of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government
reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-
tier assessment limitation in Fiscal Year 2024 is estimated to be $587,446.
IMPACT ON MULTI -RESIDENTIAL PROPERTY - EXAMPLE
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HISTORICALACTUAL —
FY 2015 "City" Property Tax
CALCULA•
$2,349.34
DOLLAR
PERCENT
FY 2016
"City" Property Tax
$2,225.69
-$123.65
-5.26%
FY 2017
"City" Property Tax
$2,160.39
-$65.30
-2.93%
FY 2018
"City" Property Tax
$2,015.48
-$144.91
-6.71 %
FY 2019
"City" Property Tax
$1,870.21
-$145.27
-7.21 %
FY 2020
"City" Property Tax
$1,737.92
-$132.29
-7.07%
FY 2021
"City" Property Tax
$1,896.65
+$158.73
+9.13%
FY 2022
"City" Property Tax
$1,751.66
-$144.99
-7.64%
FY 2023
"City" Property Tax
$1,625.55
-$126.11
-7.20%
FY 2024 I "City" Property Tax $1,419.97
Average FY 2016-FY 2024
-$205.58
-12.65%
-$103.26
-5.28%
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi -residential, which requires a rollback, or
assessment limitations order, on multi -residential property which will eventually equal
the residential rollback. Multi -residential property includes apartments with 3 or more
units. Rental properties of 2 units were already classified as residential property.
The State of Iowa will not backfill property tax loss from the rollback on multi -residential
property. The rollback will occur as follows:
Fiscal Year
FY 2017
Rollback %
Annual Loss of Tax
Revenue
$331,239
86.25%
FY 2018
82.50%
$472,127
FY 2019
78.75%
$576,503
FY 2020
75.00%
$691,640
FY 2021
71.25%
$952,888
FY 2022
67.50%
$752,366
FY 2023
63.75%
$662,821
FY 2024
54.65%
$1,186,077
Total
$5 625 661
This annual loss in tax revenue of $1,186,077 from multi -residential property
when fully implemented in FY 2024 will not be backfilled by the State. From Fiscal
Year 2017 through Fiscal Year 2024 the City will lose $5,625,661 in total, meaning
landlords will have paid that much less in property taxes. The state did not require
landlords to charge lower rents or to make additional investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class.
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HISTORY OF INCREASES IN PROPERTY TAX ASKINGS
ImpactYear Tax Askings % Change
in Tax Askings Homeowner"
FY 1989 $10,918,759T
-12.00%1
-11.40%
Sales Tax Initiated
FY 1990
$10,895,321
-0.21 %
-0.89%
FY 1991
$11,553,468
+6.04%
+3.77%
FY 1992
$12,249,056
+6.02%
+3.58%
FY 1993
$12,846,296
+4.88%
+5.19%
FY 1994
$13,300,756
+3.54%
+0.33%
FY 1995
$13,715,850
+3.12%
+2.40%
FY 1996
$14,076,320
+2.63%
-0.87%
FY 1997
$14,418,735
+2.43%
-0.42%
FY 1998
$14,837,670
+2.91 %
-0.71 %
FY 1999
$15,332,806
+3.34%
0.00%
FY 2000
$15,285,754
-0.31 %
-0.17%
FY 2001
$15,574,467
+1.89%
0.00%
FY 2002
$15,686,579
+0.72%
0.00%
FY 2003
$15,771,203
+0.54%
-5.00%
FY 2004
$16,171,540
+2.54%
0.00%
FY 2005
$16,372,735
+1.24%
+0.03%
FY 2006
$16,192,215
-1.10%
+1.72%
FY 2007
$17,179,994
+6.10%
-1.72%
FY 2008
$18,184,037
+5.84%
0.00%
FY 2009
$18,736,759
+3.04%
+2.76%
FY 2010
$19,095,444
+1.91 %
0.00%
FY 2011
$19,878,962
+4.10%
+2.47%
FY 2012
$21,284,751
+7.07%
+5.00%
FY 2013
$22,758,753
+6.93%
+5.00%
FY 2014
$23,197,623
+1.93%
+4.90%
FY 2015
$24,825,015
+7.02%
+3.23%
FY 2016
$24,906,544
+0.33%
+2.63%
FY 2017
$26,375,291
+5.90%
+1.08%
FY 2018
$25,863,049
-1.94%
0.00%
FY 2019
$26,494,205
+2.44%
+1.91 %
FY 2020
$26,296,081
-0.75%
0.00%
FY 2021
$26,202,568
-0.36%
-0.14%
FY 2022
$26,215,401
+0.05%
0.00%
FY 2023
$26,215,887
0.00%
+2.96%
FY 2024
$26,633,490
+1.59%
+2.94%
FY 2025
$28,233,757
+6.01 %
+5.00%
FY 2026
$29,872,253
+5.80%
+3.90%
Average FY 1989-2026
+2.79%
+1.04%
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Page 44
**Does not reflect State unfunded portion of Homestead Credit.
IMPACT ON TAX ASKINGS AND AVERAGE RESIDENTIAL PROPERTY
To maintain the current level of service based on the previous assumptions would
require the following property tax asking increases:
FY
2027
PropertyFiscal "City"
$31,940,934
+6.93%
..Impact
Property..
+3.00%
on Avg.
+$26.67
FY
2028
$34,833,948$33,
+9.06%
+6.99%
+$64.066
FY
2029
$36,122,257$34,
+3.70%
+1.67%
+ 16.38+$ 7-.39
FY
2030
$37,597,016$255
+4.08%
+2.05%
+$20.389
FY
2031
$39,337,027$3
+4.637-/.
+2.32%
+ 23.59�9
GUIDELIiv
The recommended guideline is a 3.00% or $26.67 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.
These guidelines include an estimated $659,063 -for recurring and $974,917 for
non -recurring improvement packages funded by a portion of the $5.3 million in
internal loans repaid to the General Fund by the Greater Downtown TIF District
and increased ambulance fees. Future years of the recurring improvement
packages will be funded by a portion of the 25% of Greater Downtown TIF District
that will be returned to taxing bodies in Fiscal Year 2028 and beyond. The amount
of improvement packages funded may change as the FY2027 budget is not yet
finalized.
Iowa House File 718 passed during the 2023 legislative sessions, replaces previous
changes made through Iowa Senate File 634 passed during the 2019 legislative
sessions, makes changes to Iowa city and county budgets and taxes for Fiscal Year
2025 and later. Additional steps have been added to the budget approval process. The
City of Dubuque is specifically impacted by the following steps of this new legislation:
Limits the General Fund levy by constraining growth by 2% or 3% each
year, depending on the trigger hit:
Non-TIF taxable growth under 3%, no reduction
Non-TIF taxable growth over 3% but less than 6%, 2% reduction factor
applied
Non-TIF taxable growth over 6%, 3% reduction factor is applied
The City of Dubuque Non-TIF taxable growth for FY2027 is 5.89%, the
General Fund levy is constrained by a growth reduction factor of 2%.
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Page 45
The General Fund levy for FY2027 is $ .78W? 7.63281 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 $16.8 million or a levy rate of $5.3532
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..
As this offset occurs each year, the special revenue levies will reach their
maximums removina this nation.
2. March 5: Cities must file a report with Iowa Department of Management
containing information specified by new law to be contained in mailings.
3. March 20: County Auditor must send each property owner or taxpayer with
the county by regular mail an individual statement with the specified
information broken out by political subdivision comprising the taxpayer's
district.
4. Taxpayer Statements must include:
• Total Current Year Tax Rate and Dollars
• Combined effective property tax rate for the city calculated using
the sum of the current fiscal year's actual property tax certified for
levy of all of city's levies
• Proposed Budget Year Tax Rate and Dollars
• If the Proposed Budget Property Tax Dollars exceed the current
fiscal year's actual property tax dollars, a detailed statement of the
major reasons for the increase, including the specific purposes or
programs for which the city is proposing an increase
• An example comparing the amount of property taxes on a
residential property with an actual value of $100,000 in the current
fiscal year and such amount on the residential property using the
proposed property tax dollars for the budget year, including the
percentage difference in such amounts.
• An example comparing the amount of property taxes on a
commercial property with an actual value of $300,000 in the current
fiscal year and such amount on the commercial property using the
proposed property tax dollars for the budget year, including the
percentage difference in such amounts.
• The city's percentage of total property taxes certified for levy in the
owner's or taxpayer's taxing district in the current fiscal year
amount all taxing authorities.
• The date, time, and location of the city's public hearing on the
information contained in the statements.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 46
• Information on how to access the city's internet site, the city's
statements, and other budget documents for prior fiscal years.
5. Public hearing on proposed property tax amounts for the budget year and
new taxpayer statements.
• In addition to public hearing to adopt the budget.
• Replaces maximum property tax dollars public hearing held in prior
years.
• Must be separate from any other meeting of City Council, including
any other meeting or hearing related to the budget.
• City Council can decrease, but not increase, the proposed property
tax amount to be included in the budget.
6. Budget Certification deadline to Iowa Department of Management is April
30th instead of March 31 st.
• If City is issuing new debt that uses the debt service levy, budget
must be adopted by April 15th.
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Page 47
CAPITAL IMPROVEMENT BUDGET GUIDELINES
U. INTEGRATION OF CAPITAL RESOURCES
GUIDELINE
To obtain maximum utilization, coordination and impact of all capital improvement
resources available to the City, state and federal block and categorical capital
grants and funds shall be integrated into a comprehensive five-year Capital
Improvement Program (CIP) for the City of Dubuque.
V. INTEGRITY OF CIP PROCESS
GUIDELINE
The City shall make all capital improvements in accordance with an adopted
Capital Improvement Program (CIP). If conditions change and projects must be
added and/or removed from the CIP, the changes require approval by the City
Council.
W. RENOVATION AND MAINTENANCE
GUIDELINE
Capital improvement expenditures should concentrate on renovating and
maintaining existing facilities to preserve prior community investment.
X. NEW CAPITAL FACILITIES
GUIDELINE
Construction of new or expanded facilities which would result in new or
substantially increased operating costs will be considered only if:
1) their necessity has been clearly demonstrated
2) their operating cost estimates and plans for providing those operating costs
have been developed
3) they can be financed in the long term; and
4) they can be coordinated and supported within the entire system.
Y. COOPERATIVE PROJECTS
GUIDELINE
Increased efforts should be undertaken to enter mutually beneficial cooperative
capital improvement projects with the county, school district and private groups.
Examples include cost -sharing to develop joint -use facilities and cost -sharing to
improve roads and bridges are examples.
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Z. USE OF GENERAL OBLIGATION BONDS
DISCUSSION
The Iowa Constitution limits the General Obligation debt of any city to 5% of the actual value of the
taxable property within the city. The Iowa legislature has determined that the value for calculating
the debt limit shall be the actual value of the taxable property prior to any "rollback" mandated by
state statute.
On October 15, 2012, the City Council adopted a formal Debt Management Policy for the City of
Dubuque. An amendment to this policy was adopted by City Council on December 15, 2025. Prior
to adoption of the formal policy, the City had already been practicing much of the policy, although
the formal policy included some new additions. The most significant components of the Debt
Management Policy include an internal policy of maintaining the City's general obligation
outstanding debt at no more than 95% (except as a result of disasters) of the limit prescribed by the
State constitution as of June 30th of each year. It is projected as of June 30, 2026 the City will be at
33.50%. City will not use short-term borrowing to finance operating needs except in the case of an
extreme financial emergency which is beyond its control or reasonable ability to forecast. Currently
there is no such debt, and none will be recommended in this process.
Bond Financing Stipulations
• Recognizing that bond issuance costs (bond counsel, bond rating, and financial management
fees) add to the total interest costs of financing:
• Bond financing should not be used if the aggregate cost of projects to be financed by the
bond issue is less than $500,000
• City will consider long-term financing for the construction, acquisition, maintenance,
replacement, or expansion of physical assets (including land) only if they have a useful life of
at least five years
• City shall strive to repay 20 percent of the principal amount of its general obligation debt
within five years and at least 40 percent within ten years.
• The City shall strive to repay 40 percent of the principal amount of its revenue debt within ten
years.
Bond Ratings
In January 2025, Moody's Investor Services affirmed the Aa2 credit rating on general obligation
bonds. Moody's credit analysis states, "the City of Dubuque's local economy benefits from its role
as a regional economic center, with solid resident income and full value per capita. Financial
operations are strong and will remain so despite declines in fund balance over the next few years,
as it expends funds from the pandemic. Long-term liabilities and fixed cost ratios are moderate and
will remain so despite future borrowing needs." According to Moody's, the Aa2 issuer rating for the
City of Dubuque's bonds reflects the city's healthy economic base, which serves as a regional
economic center. Other rationale stated for the rating include full value per capita and adjusted
resident income are solid at around $109,000 and 98% respectively, though weaker than Aa peers,
in part because of a large student population, available fund balance was strong at around 60% of
revenue at the close of fiscal 2023 (year-end June 30), and cash was stronger at 85% of revenue.
The City's available fund balance will likely remain well over 45%, despite some planned draws in
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FY 2027 Budget & Fiscal Policy Guidelines
Page 49
fiscal 2024 and fiscal 2025 to spend down federal funds from the pandemic. Despite the state
adopting new property tax restrictions, revenue raising flexibility remains strong because the City
maintains significant margin in its employee benefits fund and is not utilizing its emergency levy.
The long-term liabilities ratio will likely remain well under 300% inclusive of the current issuances
and future borrowing plans, and fixed -costs ratio will remain well below 20%.
In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds
from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to A1.
Notable credit factors include strong financial operations and ample revenue -raising flexibility, which
has resulted in steadily improved available fund balance and cash. The City serves as a regional
economic center and its regional economic growth rate has outpaced the nation over the past five
years.
In November of 2022, Moody's Investors Service ("Moodys") released a new rating methodology for
cities and counties. Two significant changes result from the new methodology; cities are now
assigned an issuer rating meant to convey the creditworthiness of the issuer as a whole without
regard to a specific borrowing, and business -type enterprise funds are now being considered
together with general fund revenues and balances in the determination of financial performance.
Under the new methodology, there are two metrics that contribute to financial performance.
Available Fund Balance Ratio ("AFBR") _ (Available Fund Balance + Net Current Assets/Revenue)
and Liquidity Ratio ("LR") _ (Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35,
and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in connection to its
annual issuance of bonds. At that time, Moody's calculated the City's AFBR to be 45.2%, and its LR
to be 59.8%. The balances used in these calculations were likely elevated due to unspent ARPA
funds. The change in methodology will now consider revenues and net assets from business -type
activities in these calculations. As such, the City's general obligation rating will now be directly
impacted by the financial performance of enterprise funds. Establishing rates and charges adequate
to provide both debt service coverage and significant liquidity will be necessary to maintain the
City's ratings.
In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's outstanding revenue
bonds from 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.
General Obligation Debt
Fiscal Year 2026 Debt
FY 2026 Debt Limit: The FY 2024 assessable value of the community for calculating the statutory
debt limit is $6,472,591,693, which at 5%, indicates a total General Obligation debt capacity of
$323,629,585, which at 5%, indicates a total General Obligation debt capacity of $323,629,585.
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Based on Outstanding G.O. debt (including tax increment debt, remaining payments on
economic development TIF rebates, and general fund lease agreement) on June 30, 2026 will
be $108,410,164 (33.50% of the statutory debt limit) leaving an available debt capacity of
$215,219,421 (66.50%).
It should be noted that most of the City of Dubuque's outstanding debt is not paid for with property
taxes (except TIF), but is abated from other revenues. Exceptions include one issuance for the
replacement of a Fire Pumper truck in the amount of $1,410,000 with debt service of $83,700 in FY
2026 and one issuance for the franchise fee litigation settlement in the amount of $2,800,000 with
debt service of $145,000 in FY 2026. Included in the debt is $4,661,120 of property tax rebates to
businesses creating and retaining jobs and investing in their businesses.
100%
75%
50%
25%
Statutory Debt Limit
Statutory Debt Limit Used
(as of June 30th)
TI M Z1 m1 M M '7 T TI TI -1 m n -1 -1 -1 M M M M -1
Ln 0) r 00 W O N W A U1 a) v 00 Co O N W A U1
FY16 Adopted FY26 Adopted
The City also has debt that is not subject to the statutory debt limit. This debt includes
revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater fees on
June 30, 2026 will have a balance of $167,789,201. The total City indebtedness as of June
30, 2026, is projected to be $289,568,909. The total City indebtedness as of June 30, 2025,
was $281,085,184. In FY 2026, the City will have a projected $8,483,725 or 3.02% more
Page 167 of 304
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Page 51
in debt. The City is using debt to accomplish necessary projects and to take advantage of
the attractive interest rates in the current market.
The following chart shows Dubuque's relative position pertaining to use of the statutory debt
limit for Fiscal Year 2026 compared to the other cities in Iowa for Fiscal Year 2025 with a
population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa Cities
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
Percentage of Legal
Debt Limit Utilized
11
Des Moines FY25
$ 964,798,967
$ 573,230,000
59.41 %
10
Cedar Rapids FY 25
$ 767,559,335
$ 428,550,000
55.83 %
9
W. Des Moines (FY25)
$ 551,635,692
$ 307,090,000
55.67 %
8
Waterloo FY25
$ 267,626,798
$ 137,905,065
1 51.53 %
7
Sioux City (FY25)
$ 367,743,172
$ 146,935,000
1 39.96 %
6
Davenport (FY25)
$ 493,660,291
$ 176,195,000
35.69 %
5
Dubuque (FY26)
$ 323,629,585
$ 108,410,164
33.50 %
4
Ankeny FY25
$ 529,988,951
$ 97,645,000
18.42 %
3
Ames FY25
$ 328,345,527
$ 56,710,000
17.27 %
2
Iowa City FY25
$ 435,367,793
$ 65,945,000
15.15 %
1
Council Bluffs FY25
$ 427,559,692
$ 61,320,000
14.34
Average w/o Dubuque
$ 205,152,507
36.33 %
Percent of Legal Debt Limit Utilized
75%
50%
5 0
0/o �17.27% 18.42%
14.34% 15. 5%
o
�
33.50% 35.E
9
JQJe a�eK19 O J� JQJe \o J�G��� �a�e�\oo o\�e5 �dS y�o\�e5
Go J O 4\0 5 Oe Geaa Oe
ale �
,yet
P
Page 168 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 52
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. The average of the other cities (36.33%) is 8.4% higher than
Dubuque (33.50%).
By the end of the Recommended 5-Year Capital Improvement Program (CIP) budget, the total
amount of debt for the City of Dubuque would be $310.62 million (32.90% of the statutory debt
limit). Projections out 10 years to Fiscal Year 2035 show the City of Dubuque at 19.66% of the
statutory debt limit, and the projection is to be at $200.79 million (19.66% of statutory debt limit)
within 10 years.
Total Debt (In Millions)
$324
$297
H $270
c
0
2 $243
$216
_5308.2$310.6
$189 $200.8
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY16 Adopted FY26 Adopted
The escalation observed in Fiscal Year 2025 is attributable to the City's decision to issue
budgetary debt for both Fiscal Year 2024 and Fiscal Year 2025 within a single fiscal period.
This approach resulted in a significant increase in the aggregate debt reported for Fiscal
Year 2025.
Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation Program.
Through a new state program, the City is able to issue $28.25 million in revenue bonds payable
from the 5 percent State Sales Tax increment for projects in the Bee Branch Watershed allowing the
City to complete the Bee Branch Creek Restoration, construct permeable alleys, replace the Bee
Branch flood gates, complete North End Storm Sewers, construct a Flood Control Maintenance
Facility, install Water Plant Flood Control and complete 17th Street Storm Sewer over the next
twenty years.
The ten year history of the City's use of the statutory debt limit is as follows:
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY24
FY25
FY26
86.54%
66.06%
59.79%
52.90%
46.91 %
1 43.51 %
43.33%
39.36%
40.07%
34.85%
1 33.50%
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FY 2027 Budget & Fiscal Policy Guidelines
Page 53
As we approach the preparation of the FY 2027-2031 Capital Improvement Program (CIP) the
challenge is not the City's capacity to borrow money but (a) how to identify, limit, and prioritize
projects which justify the interest payments and; (b) how to balance high -priority projects against
their impact on the property tax rate.
GUIDELINF
There are many high priority capital improvement projects which must be constructed
during the FY 2027 - FY 2031 period. The potential of partially forgivable State
Revolving Fund Loans and an increase in grant funding may impact the need to borrow
for projects. As in the past, debt will be required on several major capital projects,
including the Bee Branch Watershed Project, Airport Improvements, Park
Improvements, Sidewalk and Street Improvements, Sanitary Sewer Fund, Parking
Fund, and Water Fund. Borrowings will also include smaller projects and equipment
replacements such as Park developments and Public Works equipment. These smaller
borrowings will be for a term not exceeding the life of the asset and not less than six
years in accordance to the Debt Management Policy. Alternative sources of funds will
always be evaluated (i.e. State Revolving Loan Funds) to maintain the lowest debt
service cost.
AA. ROAD USE TAX FUND
DISCUSSION
Actual Road Use Tax Fund receipts are as follows:
FY 2015
FY 2016
FY 2017 I
FY 2018 I
FY 2019 I
FY 2020 I
FY 2021 I
FY 2022 I
FY 2023
FY 2024
FY 2025
Road Use Tax
(In Millions)
$6.0
$7.1
$7.2
$7.3
$7.5
$7.4
$8.6
$8.2
$8.2
$8.4
$8.4
$1.0 62.L $3.0 $4.0 $5.0 $6.0 $7., $8.0 $9.0
The FY 2026 budget was based on receiving $8,400,000 in Road Use Tax funds. In FY 2026, 100%
of the Road Use Tax income is in the operating budget. The State of Iowa increased the gas tax 10
cents per gallon in FY 2016.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 54
With increases in City DMATS and State Road Use Tax funds, the City will be able to substantially
add to the number of street lights and continue with major road improvements.
GUIDELINE
IIt is preferable to shift Road Use Tax funds to the capital budget for street maintenance
and repair to reduce the need to borrow funds for routine street maintenance and
improvements. This shift cannot occur until there are increased revenues or reduced
expense that would allow this shift without a property tax impact. The City does use
30% of the local option sales tax for street projects and maintenance of City buildings.
BB. COMMERCIAL AND INDUSTRIAL DEVELOPMENT
GUIDELINE
Current City, commercial and industrial development efforts should be continued to (a)
preserve current jobs and create new job opportunities and (b) enlarge and diversify
the economic base. Financing these efforts and programs should continue to be a high
priority.
CC. HOUSING
GUIDELINE
To maintain an adequate supply of safe and decent housing, the City should strive to
preserve existing single family and rental housing that is not substandard and provide
opportunities for development of new housing, including owner occupied, within the
City's corporate limits for all residents, particularly for people of low and moderate
(income. Workforce rental housing is becoming increasingly important and the City
provides incentives for building rehabilitations. In 2023, the City Council adopted
housing incentive programs through the use of Tax Abatement and Tax Increment
Financing.
DD. SALES TAX
GUIDELINE
Sales Tax revenue shall be used according to the following split:
Sales Tax 50%: Property Tax Relief
Sales Tax 30%:
(a) The reduction by at least 75% of street special assessments.
30% (b) The maintenance and repair of streets.
50%
Sales Tax 20%:
(a) The upkeep of City -owned property such as sidewalks, steps, storm
2076 sewers, walls, curbs, traffic signals and signs, bridges, buildings, and
facilities (e.g. Airport, Five Flags Center, Library, Law Enforcement
Center, City Hall, Fire Stations, Parks, and Swimming Pools).
(b) Transit equipment, such as buses
(c) Riverfront and wetland development
(d) Economic Development Projects
Page 171 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 55
EE. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE DUBUQUE
RACING ASSOCIATION
DISCUSSION
The contract with the Dubuque Racing Association calls for distribution at the end of its fiscal year,
December 31s', of 50 percent of its net cash operating funds to the City of Dubuque. In early -
February, the City receives payment of proceeds to be distributed. These proceeds are then
allocated for capital improvements, with the highest priority given to reducing the City's annual
borrowing.
The Dubuque Racing Association provides the City with projections of future distributions. Since
gaming is a highly volatile industry, the estimates are discounted prior to including them in the City's
Five -Year CIP.
The February 2027 DRA distributions will be used in Fiscal Year 2027 to 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. A change from past use of DRA distributions, 0% of the February 2027 projections of
operating surplus have been anticipated as resources to support the Fiscal Year 2027 capital
improvement projects. The estimates received from the DRA will be reduced by 5 percent for FY
2029 resources, 10 percent for FY 2030, and 15 percent for FY 2031 resources, to provide a margin
of error in case the estimates are not realized.
GUIDELINE
$1,286,001 of February 2027 DRA distributions will be used for FY2027 property tax
relief. This is a change from past use of DRA distributions because all funds will be
used for Fiscal Year 2027 operations.ln Fiscal Year 2026 and beyond, the City
anticipates distribution of a significant amount of net cash proceeds for use in the
Capital Improvement Program. These amounts will be budgeted in the Five -Year CIP
in the year they are received and will be used to reduce required General Obligation
borrowing. The three out -years will be discounted by 5 percent, 10 percent, and 15
percent respectively.
FF. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING BUDGET
EXPENSE
GUInFI INF
Capital improvement expenditures that will reduce future maintenance and operating
expense will receive priority funding and these types of initiatives will be encouraged in
all departments and funding sources as a means of maximizing the use of available
resources. This emphasis reflects fiscally responsible long-range planning efforts.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 56
GG. USE OF GAMING -RELATED RECEIPTS
DISCusSiOn
On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for
lease of the Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5%
of coin -in. The amendment increased the amount retained by the DRA for the operating budget
reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to
the Depreciation and Improvement Fund for facility maintenance. In addition, In addition, the
distribution of net profit is now split three ways between the City, charities, and the Schmitt Island
Master Plan Implementation from a two-way split between the City and charities. The amended
lease has an expiration date of December 31, 2055.
The following shows the historical split of DRA gaming taxes and rents between the City's operating
and capital budgets:
Split of DRA Gaming Taxes & Rents Between Operating & Capital Budgets
100%
50% 25% 24%15%14%10%
3%
—%
1 % 3%
4% 4% —% —%
—%
75% -
50% —
o
0
o
O
0
o
o
o
O O
0 0 0
00 0 0 0
O O O O O
0 0 0 0
0 0 0 0 0
o
0
0
C O
0 0
0 0
0 -
o
r-
o ti
o
r`
o 0 0 0
0 0 0 0 0
r-
0
0 0
0
L 0 0
ao
o ti
25% o
LO
—% -
*
O ** .* **
Operating Capital
Page 173 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 57
Notable Changes:
*FY 2004 A new lease took effect with the Dubuque Racing Association for lease of the Dubuque
Greyhound Park and Casino. This new lease was negotiated after the FY 2005 budget was
approved and raised the lease payment from 1/2% of coin -in to 1 % of coin -in. This new lease and the
expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000
gaming positions, effective August 1, 2005, provided additional revenues to the City of Dubuque.
**FY 2009 The Diamond Jo expanded to a land -based barge casino facility and increased to 1,100
slots on December 1, 2008. This expansion was projected to decrease the Q gaming market and
correspondingly the coin -in by just over 21 percent. Based on the projected market share loss, the
City did not receive a distribution of cash flows from the Dubuque Racing Association (DRA) in
Fiscal Years 2009 and 2010.
***FY 2010 The operating portion of the split now includes the debt service required on the 2002
general obligation bonds for the America's River Project that was previously considered as part of
the capital portion of the DRA lease. Debt obligations are considered a continuing annual expense
and are more accurately reflected as part of the operating portion of the DRA lease.
****FY 2011 DRA distributions restarted in FY 2011 instead of the projected year of FY 2012.
*****FY 2016 A reduction in revenue in the Greater Downtown TIF urban renewal area resulted in
reduced revenues to make debt payments and it was necessary for the general fund to support
$84,104 in FY 2015 and $78,242 in FY 2016 of debt service payments, which were funded by
reducing the amount of gaming revenues from taxes and DRA lease that goes to capital
recommended in FY 2016.
*******FY 2021 A lease amendment took effect with the Dubuque Racing Association for the lease of
the Q Casino. This lease amendment added a payment equal to'/2% of monthly sports wagering
conducted on Q Sportsbook retail or Q advance deposit sports wagering internet site.
"'*'**FY 2022 A lease amendment took effect with the Dubuque Racing Association for lease of the
Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5% of coin-
in.The amendment increased the amount retained by the DRA for the operating budget reserve
from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the
Depreciation and Improvement Fund for facility maintenance. The split of annual distribution was
changed from 50% City/ 50% charity to one third City, one third charity, one third Chaplain Schmitt
Island Development Fund. In addition, the amended lease has an expiration date of December 31,
2036.
*****"'FY 2023 A lease amendment took effect with the Dubuque Racing Association for lease of the
Q Casino. This lease amendment extended the termination date from 2036 to 2055. The
amendment allows $1.5 million of cash reserve fund as a down payment of a construction loan in
FY23. The DRA is required to establish a debt reserve fund equal to one year of debt payments,
almost $7 million.
Page 174 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 58
The change in market share and changes in the lease agreement impacts the City's lease payment
from the DRA. The new lease effective 1/1/22 requires the DRA to pay the City 1.5 percent of coin
in from slot machines, 4.8 percent of gross revenue from table games, and 0.5 percent of sports
wagering.
In calendar year 2025, the DRA (Q Casino) reported an increase of +8.7% in gross gaming revenue
(GGR), while Diamond Jo Casino experienced a slight decline of -1 % compared to calendar year
2024. The overall Dubuque gaming market reached approximately $125.7 million in calendar 2025,
reflecting a +2.5% increase from the $122.6 million reported in calendar year 2024. The growth in
GGR at DRA (Q Casino) was anticipated, as several redeveloped outlets —including the casino
floor, food and beverage (F&B) operations, and banquet facilities —were fully open during the year.
In addition to gaming revenue growth, the DRA continued to see growth in non -gaming revenue
streams, particularly in food and beverage and the newly developed banquet and event space. This
combined growth contributed to an overall increase in total gross revenue of approximately +9% in
calendar year 2025 compared to calendar year 2024.
Looking ahead, the DRA projects that gross gaming revenue will remain relatively flat in calendar
year 2027, primarily due to the anticipated opening of the Linn County (Cedar Rapids) casino on
December 31, 2026. Despite this, total gross revenue is expected to increase by approximately
+2.63% in 2027, driven by continued expansion in auxiliary revenue streams such as hotel
operations, food and beverage, and banquet services.
Beyond 2027, the DRA forecasts moderate growth in gaming revenue, with projected increases of
+3.4% in FY 2028, +2.1 % in FY 2029, +1.0% in FY 2030, and +1.0% in FY 2031. Total gross
revenue is expected to grow at similar but slightly higher rates, with projected increases of +3.3% in
FY 2028, +2.2% in FY 2029, +1.3% in FY 2030, and +1.0% in FY 2031.
A new Hard Rock Casino has opened in Rockford, Illinois.
Additionally, the Ho -Chunk Nation has announced plans to develop a $705 million casino, hotel,
and conference center in Beloit, Wisconsin, to be constructed in multiple phases. The casino
component is currently scheduled for completion in the fourth quarter of 2026." Competition from
these new casinos follows years of the State of Illinois allowing slot machines in taverns.
The 500 per patron tax previously received from the Diamond Jo was replaced by a $500,000 fixed
payment based on their revised parking agreement which expires June 16, 2029.
Page 175 of 304
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2027
Department Description Recurring/Non- ADDL ADDL Net Tax Rec'd
Recurring Expense Revenue Impact
RECURRING DECISION PACKAGE COSTS - General Fund
City Attorney
Annual and recurring license that would give the City Attorney's Office direct access to Police
R
$ 600
$ 469
$ 131
Y
Department records. Records are often needed for traffic court, simple misdemeanors and
muncipal infractions.
City Clerk
Business license and permits fee increases. These updates are intended to reflect
R
$ -
$ 2,145
$ (2,145)
Y
administrative time and compliance oversight required to manage these licenses and
permits.
City Manager's Office
Growing Sustainable Communities Conference elimination due to significant cost increases
R
$ (91,145)
$ 79,302
$ (11,843)
Y
and reduced momentum in sponsorships.
Community Impact
Increase city's financial support for Community Impact Administrative Support position by
R
$ 43,157
$ -
$ 43,157
Y
0.58 FTE. Historically, this portion of the position has been funded by the AmeriCorps grant.
Due to the expanding of the department, additional duties have emerged that are unrelated
to the AmeriCorps operational needs.
Economic Development
Bringing in a Arts Grants Consultant for grant eligibility and financial review process. Hiring a
R
$ 3,000
$ 10,417
$ (7,417)
Y
consultant would elminate the need for a 0.25 FTE intern position and provide cost savings.
Economic Development
SlideRoom Grant Application Software is essential for managing applications and post -grant
R
$ 3,000
$ -
$ 3,000
Y
reports for Arts & Cultural Affairs grant programs. This software ensures a fair and efficient
process.
Emergency Communications
911 Public Safety Applicants testing software upgrade. This softwares allows to administer
R
$ 2,368
$ 1,184
$ 1,184
Y
an unlimited number of online tests to applicants at home.
Emergency Communications
Software to track training requirements for 911 Dispatch staff
R
$ 3,000
$ 1,500
$ 1,500
Y
Emergency Communications
Emergency Communications Vehicle. Due to the new center location, staff are traveling
R
$ 40,000
$ 5,000
$ 35,000
N
more for in -person meetings. 75 % of the vehicle use would be for City purposes and 25 % for
the Emerqency Communications purposes.
Engineering
Full size cargo van equipped with storage racking, tools and supplies for Facilities
R
$ 62,000
$ -
$ 62,000
N
Maintenance.
Engineering
1.0 FTE Maintenance worker for all City Buildings. Current staffing levels are not sufficient to
R
$ 86,439
$ -
$ 86,439
N
maintain buildings in a safe, reliable, and cost-effective manner.
Engineering
1.0 FTE Custodian I for the Bright Minds Campus on Chavenelle Rd location. A portion of the
R
$ 77,793
$ 40,581
$ 37,212
N
costs for this position will be shared between other tenants of the facility.
Engineering
New truck for the Engineering Technician position. The addition of this truck will ensure the
R
$ 49,500
$ -
$ 49,500
Y
new Engineering Technician position can perform duties efficiently and safely without relying
on shared or personal vehicles.
Engineering
Increased funding for the partnership with the East Central Intergovernmental Association to
R
$ 50,000
$ -
$ 50,000
Y
maintain Dubuque's traffic modelinq system.
Fire
New Position for Fire Code Official / Fire Prevention & Plan Review Manager. The cost of this
R
$ 195,202
$ -
$ 195,202
N
package includes wage, benefits, vehicle, equipment and office set up. This position is
designed to strengthen citywide fire and life safety code compliance, improve efficiency in the
development review process, and enhance collaboration amount key departments and
private stakeholders.
Fire
Addition of a new Computer Workstation at Fire station 4. There are currently two shared
R
$ 2,075
$ -
$ 2,075
Y
computer workstations, one used by the company officer who manages daily station
operations, administrative duties, and incident reporting, and a second shared amount the
four firefiqhter paramedics assigned to the station.
Fire
Annual Generator Maintenance. The generators were purchased in FY2025 and were under
R
$ 3,120
$ -
$ 3,120
Y
warranty for one year and will now transition to regular annual service. Each generator will
receive an annual check and service to replace worn parts which will keep each generator
functioninq.
Fire
Firefighter 1: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 2: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 3: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 4: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 5: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 6: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 7: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 8: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 9: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
Y
positions in FY27 to enhance the department's minimum staffing levels. These positions will
be pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Incorporating Scenario -based assessments promotional testing process which occurs once
R
$ 9,000
$ -
$ 9,000
Y
every two years. The addition of an assessment center component will enhance the
evaluation of candidates by requiring them to demonstrate practical leadership and decision -
making skills in simulated environments.
Page 176 of 304
Department Description Recurring/Non- ADDL ADDL Net Tax Rec'd
Recurring Expense Revenue Impact
RECURRING DECISION PACKAGE COSTS -General Fund
Fire
Creation of Dubuque Fire Explorer Post Program for youth ages 14-18. Request was
N
$ 10,000
$ -
$ 10,000
Y
submitted as recurring. Recommended as non -recurring.
Health Services
CitizenServe Permitting and Inspection (7) software licenses. This software can be
R
$ 10,500
$ -
$ 10,500
Y
configured to reflect City of Dubuque health and animal control codes, associated citations,
fines and reporting.
Health Services
Part -Time Animal Control Officer to enhance weekday and weekend service coverage and
R
$ 50,822
$ -
$ 50,822
N
support the successful implementation of the City's new animal licensing program. Currently,
the program operates with two full-time Animal Control Officers.
Housing & Community Development
Two ICC Premium Complete subscriptions, which provide full online access to ICC's cede
R
$ 1,300
$ -
$ 1,300
Y
library. Premium Complete access includes all published ICC code books, many referenced
standards, official code interpretations, and advanced search tools. It also allows printing of
code sections to share with citizens, providing clearer communications and helping them
better understand applicable code requirements.
Housing & Community Development
Housing and Community Development Administrative Support Professional (Requests in
R
$ 69,548
$ -
$ 69,548
N
General Fund and Lead Fund).
Information Technology
User Technology Support Specialist to support the increased demand for IT infrastructure
R
$ 91,867
$ -
$ 91,867
N
and support services. Timely and effective technical support is crucial to maintain productivity
and minimize disruptions. The IT department currently has two User Technology Support
Specialists.
Information Technology
Lead Applications Network Analyst. This position primarily focuses on all City application
R
$ 105,435
$ -
$ 105,435
N
support with increased software and artificial intelligence use. The IT department currently
has three Lead Applications Network Analysts, with two of these positions primarily focused
on public safety.
Information Technology
IT Service Management Software - combines several pieces of software that IT currently
R
$ 75,000
$ -
$ 75,000
Y
uses under one umbrella. This new software includes advanced security features to protect
our data, safeguard against cyber threats, and ensure compliance with industry standards. It
automates routine tasks such as software updates, patch management, and device
provisioninq, reducinq manual workload and minimizinq downtime.
Information Technology
Addition of a second IT vehicle. The current vehicle is checked out and shared between 18
R
$ 40,000
$ -
$ 40,000
N
staff members. A second vehicle would alleviate more staff needing to use their personal
vehicles and claiming mileage costs. With the IT staff relocation to the new offices, this issue
is compounded with staff need to drive additional distance to every City building, incurring
more mileaqe.
Parks
1,510 (.72 FTE) additional hours for temporary Park Rangers during the park season.
R
$ 39,865
$ -
$ 39,865
N
Currently there is one Park Ranger scheduled for evenings Monday through Thursday and
two Park Rangers scheduled for evenings on Friday, Saturday and Sunday. The increased
hours would provide for two Park Rangers on Monday through Thursday evenings and
additional daytime hours on Saturdays and Sundays. The hours would also decrease time
needed by the Police Department to respond to calls that park rangers can handle.
Parks
1.0 FTE Forestry Technician. The Forestry Laborer positions have been difficult to fill due the
R
$ 73,586
$ -
$ 73,586
N
requirement of a commercial drivers license to operate the forestry equipment. This does
not allow for forestry staff to efficiently perform their duties especially during storm response.
The Forestry activity has seen an increased workload due to more frequent storms, tree
plantings, and additional training and work requirements. There are currently Forestry
Technicians (2.0 FTE) in the Forestry Activity. Funds are also budgeted for (2) Temporary
Forestry Laborers (1.0 FTE).
Parks
1.0 FTE Maintenance Technician responsible for all areas of park maintenance as
R
$ 73,586
$ -
$ 73,586
Y
recommended by the Parks and Recreation Comprehensive Master Plan.
Parks
1.0 FTE Assistant Field Operations Manager to ease the administrative burden and support
R
$ 106,120
$ -
$ 106,120
N
the Parks Division Manager as recommended by the Parks and Recreation Comprehensive
Master Plan.
Parks
1.0 FTE Maintenance Technician responsible for all areas of park maintenance as
R
$ 73,586
$ -
$ 73,586
Y
recommended by the Parks and Recreation Comprehensive Master Plan.
Parks
1.0 FTE Maintenance Technician responsible for all areas of trail maintenance as
R
$ 73,586
$ -
$ 73,586
N
recommended by the Parks and Recreation Comprehensive Master Plan.
Parks
1.0 FTE Assistant Horticulturist to support the landscaped areas in roundabouts, new parks
R
$ 73,586
$ -
$ 73,586
N
and City owned landscape improvements. This position is recommended by the Parks and
Recreation Comprehensive Master Plan.
Police
New Crime Analyst Intern Position (0.25 FTE). Several instructors with various colleges in the
R
$ 9,011
$ -
$ 9,011
Y
area have reached out inquiring about internships in criminal analytics. In 2025, a full-time
Crime Analyst position was created to improve data -driven decision -making. As this position
has grown, a growing need has been identified that could be filled by an intern position.
Public Works
Fleet A/C Machine (R-1234yt). Around 2013-2017, most new vehicles began adopting R-
R
$ 9,750
$ -
$ 9,750
Y
1234yf, a low -global -warming -potential (GWP) refrigerant replacing R-134a. The city -owned
vehicles that fall within this category, currently require a dealer due to city equipment not
beinq compatible.
Public Works
Street Maintenance overtime for Barricades/Bollards durinq Special Events
R
$ 10,000
$
$ 10,000
Y
Public Works
Fleet Service Coordinator (1.0 FTE). The responsibilities for this position would be split from
R
$ 79,462
$ 79,462
N
the Fleet Purchasing & Service Coordinator to improve workflow reliability, strengthen
communication and align Public Works with APWA Accreditation standards.
Recreation
Goff cart passes increased $50 (from $650 to $700). These passes are sold separately from
R
$ -
$ 2,600
$ (2,600)
Y
the annual Golf Pass which covers the pass holder's daily rounds.
Recreation
Reallocation and reduction of temporary employee expenses (-0.50 FTE). Within the budget
R
$ (26,659)
$ -
$ (26,659)
Y
activities of Youth Sports, Recreation Classes, and Therapeutic Recreation, the program are
beinq corrected based on current operations.
Recreation
Mobile Event Trailer - 0.1 FTE and income increase. Since the addition of the mobile Rec &
R
$ 2,641
$ 2,700
$ (59)
N
Roll trailer program, the department consistently receives inquiries as to the option to rent out
the trailer.
Recreation
Full-time Community Outreach & Public Communications Coordinator (1.0 FTE, NB-11).
R
$ 106,668
$ -
$ 106,668
N
Recommended from Parks & Rec master plan. This position is needed due to citizens not
being aware of Parks and Recreation offerings.
Part-time Bus Attendant Position (0.50 FTE, NB-05). This position is needed due to safety
R
$ 26,251
$ -
$ 26,251
Y
,Transportation Services
concerns with students on the afternoon buses.
TOTAL GENERAL FUND RECURRING PACKAGES $2,698,798 $ 872,000 $1,985,402
Page 177 of 304
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2027
Department Description R/N ADDL ADDL Net Tax Rec'd
Expense Revenue Impact
NON -RECURRING DECISION PACKAGE COSTS
City Clerk
Desktop to laptop upgrade for the Administrative Support Professional's
N
$ 300
$ 235
$ 65
Y
computer.
City Managers Office
Org Culture/EQ Transition Consultant
N
$ 40,000
$ 31,288
$ 8,712
Y
City Manager's Office
Climate Action Coordinator - 1 year extension for the limited -term position. This
N
$103,737
$ -
$103,737
Y
position currently expires in FY26.
Community Impact
Increasing funding for the Neighborhood Association Support grant to help
N
$ 15,000
$ -
$ 15,000
Y
activate and expand Neighborhood Association development. All grant funds are
currently allocated, limiting opportunities to support local initiatives. Request was
submitted as recurring. Recommended as non -recurring.
City Manager's Office
Energy Savers Program - outdated and inefficient heat source and/or water
N
$ 85,000
$ 85,000
Y
heater replacements.
$
Economic Development
Art on the River Artist stipend increase from $1,800 to $2,000. This will will
N
$ 2,200
$
$ 2,200
N
directly affect the ability of artists to secure materials, resulting in an increased
number of artist participants. Request was submitted as recurring.
Recommended as non -recurring.
Emergency Communications
Communications Training Officer (CTO) program for 4 staff members. This
N
$ 2,200
$ 1,100
$ 1,100
Y
course provides comprehensive training on the roles and responsibilities of CTOs
in running an agency's training program.
Emergency Communications
Quality Assurance Certification for the Director and Lead 911 Public Safety
N
$ 4,883
$ 4,882
Y
Dispatchers. This program will ensure consistent call handling, improve service
accuracy and accountability, helps reduce liability and allows for effective
feedback, reinforces best practices and close performance gaps.Request was
submitted as recurring. Recommended as non -recurring.
$ 9,765
Emergency Communications
911 Surcharge Costs
N
$195,000
$
$195,000
Y
Finance
Safety and Risk Software. Request was submitted as recurring. Recommended
N
$ 20,000
$ 20,000
Y
as non -recurring.
$
Finance
Safety Equipment funding to ensure the City can promptly replace and maintain
N
$ 10,000
$ 10,000
Y
critical safety equipment to protect employees and the public. These funds
enable rapid emergency response and support compliance with safety
regulations identified through safety walkthroughs, audits, or near -miss reports,
primary for needs that may not be budgeted within individual departments.
Request was submitted as recurring. Recommended as non -recurring.
Finance
Safety consulting services to assist the City in expanding and strengthening its
N
$ 25,000
$ 25,000
Y
safety programs, building on current initiatives and implementing procedures
within departments. Request was submitted as recurring. Recommended as non-
recurring.
$
Fire
Fire Department Mental Health Wellness Checks. These annual, confidential
N
$
$ 22,000
Y
sessions with a department -dedicated licensed psychologist experienced in first
responder care help firefighters manage the emotional and psychological
demands of fire and EMS service. Request was submitted as recurring.
Recommended as non -recurring.
$ 22,000
Fire
Purchase of incident command boards to provide incident tracking which outlines
N
$ 1,500
$
$ 1,500
Y
critical tasks, assists with crew resource management, tracks accountability,
timelines, and assists with documenting milestones.
Fire
Purchase items for employee recognition including, awards, events, service pins,
N
$ 5,000
$
$ 5,000
Y
department branded items, etc.
Fire
Contract External ICS Training essential for effective command and coordination
N
$ 3,000
$
$ 3,000
Y
during complex incidents.
Fire
Replacement of garage door at Fire Station 5
N
$ 5,000
$
$ 5,000
Y
Fire
Epoxy floor at Fire Station 5
N
$ 9,000
$ 9,000
Y
Health Services
Community Health Assessment and Health Improvement Plan outreach &
N
$ 5,200
$
$ 5,200
Y
engagement.
Health Services
One-time community education and outreach event focused on responsible pet
N
$ 2,500
$
$ 2,500
Y
ownership. The event will include live demonstrations by professional dog
trainers, public Q&A sessions, and distribution of educational resources.
Health Services
Rabies Vaccination Voucher Program for low-income pet owners within city
N
$
$ 5,000
Y
limits. The program would provide approximately 166 vouchers.
$ 5,000
Health Services
National Environmental Health Association Conference for two staff members.
N
$
$ 5,090
Y
This training covers latest practices, data and research related to environmental
health.
$ 5,090
Health Services
Animal Control Truck Safety Accessories - seat covers, floor mats and a cargo
N
$
$ 1,208
Y
divider to enchance vehicle protection and ensure Animal Control Officer safety
when transporting animals.
$ 1,208
Health Services
Animal Control Postcard Mailing - promotion of new pet licensing software (2
N
$
$ 9,130
Y
year recurring request). Request was submitted as recurring. Recommended as
non -recurring.
$ 9,130
Health Services
National Association of County & City Health Officials Preparedness Summit for
N
$
$ 3,500
Y
the Environmental Sanitarian/ Emergency Preparedness Planner. This
conference presents new research findings, shares tools and resources, and how
to implement model practices to prepare, respond and recover from disasters
and other emergencies. Request was submitted as recurring. Recommended as
non -recurring.
$ 3,500
Health Services
International Association of Emergency Managers Conference for the
N
$
$ 3,700
Y
Environmental Sanitarian/Public Health Emergency Preparedness Planner.
Request was submitted as recurring. Recommended as non -recurring.
$ 3,700
Page 178 of 304
Department Description R/N ADDL ADDL Net Tax Rec'd
Expense Revenue Impact
NON -RECURRING DECISION PACKAGE COSTS
Health Services
Dale Carnegie Training - Animal Control Officer & Environmental Sanitarian. Dale
N
$ 4,700
$
$ 4,700
Y
Carnegie courses develop and build confidence, personal leadership
competence, strengthen skills in relating to others and build positive relationships
with the public, enhance skills to communicate logically, clearly, and concisely.
Housing & Community Development
Additional funding for building demolitions is necessary to address current and
N
$ 42,500
$
$ 42,500
Y
anticipated demolition needs and to uphold our responsibility to maintain safe
and stable neighborhoods. Request was submitted as recurring. Recommended
as non -recurring.
Human Resources
Contract with a third -party provider to digitize City documents and employee
N
$ 80,000
$ 62,576
$ 17,424
Y
personnel files incoordination with the rollout of the City's new Human Resources
Information System (HRIS). If this is recommended, the temporary office
assistant improvement package request is not needed.
Human Resources
Temporary Office Assistant position (0.50 FTE) to support the City's transition to
N
$ 29,160
$ 22,809
$ 6,351
N
digitized personnel records. If this is recommended, the improvement package
request for a third -party provider to digitize records is no longer needed.
Human Resources
City of Dubuque shirts for Human Resources staff. Request was submitted as
N
$ 875
$ 684
$ 191
Y
recurring. Recommended as non -recurring.
Human Resources
Society for Human Resource Management Certified Professional (SHRM-CP)
N
$ 1,150
$ 900
$ 250
Y
certification for Human Resources staff. Request was submitted as recurring.
Recommended as non -recurring.
Human Resources
HR Employment Specialist to attend the annual NeoGov conference. Request
N
$ 2,463
$ 1,898
$ 565
Y
was submitted as recurring. Recommended as non -recurring.
Human Resoures
Recruitment services for City Manager position. This package covers
N
$ 50,000
$ 38,530
$ 11,470
Y
comprehensive professional recruitment services, including national outreach and
advertising, stakeholder engagement, candidate screening and evaluation,
background and reference checks, facilitation of finalist interviews, and support
through appointment and contract negotiation.
Human Rights
Community Dialogue Event focused on the themes of belonging and connection.
N
$ 2,020
$
$ 2,020
Y
Human Rights
Civil Rights Education Community Event
N
$ 2,020
$
$ 2,020
Y
Human Rights
Bus Wrap & Social Media Campaign to advertise Human Rights Deparment and
N
$ 6,460
$
$ 6,460
Y
how/why to file a discrimination complaint.
Information Technology
Plotter for the Information Technology department.
N
$ 5,000
$
$ 5,000
Y
Information Technology
IT Staff City of Dubuque Polos Request was submitted as recurring.
N
$
$ 1,500
Y
Recommended as non -recurring.
$ 1,500
Information Technology
Training and education for IT staff - classes, conferences, certifications and other
N
$ 28,000
$
$ 28,000
Y
educational needs. Request was submitted as recurring. Recommended as non-
recurring.
Information Technology
Hybrid work from home setup for all salaried employees. Includes docks, power
N
$ 6,000
$
$ 6,000
Y
strips, and headset/speakers.
Information Technology
Copilot Licensing - 200 additional licenses. 100 licenses were purchased and
N
$ 72,000
$
$ 72,000
Y
approved previously, but demand for licenses has far exceeded the initial
purchase. Request was submitted as recurring. Recommended as non -recurring.
Information Technology
5 employees to attend virtual Esri GIS training per year. Request was submitted
N
$ 16,000
$
$ 16,000
Y
as recurring. Recommended as non -recurring.
Information Technology
Additional conference per year for GIS Coordinator. Request was submitted as
N
$ 3,000
$
$ 3,000
Y
recurring. Recommended as non -recurring.
Information Technology
Automated External Defibrillator (AED) for the Information Technology office. This
N
$ 2,700
$
$ 2,700
Y
request includes the AED and all necessary supplies, including the mounting
cabinet, extra battery, and pads.
Information Technology
City Hall 3rd Floor Network Switch Enclosure - adding lockable doors to the
N
$ 2,500
$
$ 2,500
Y
existing network rack.
Information Technology
Fluke Optical Time Domain Reflectometer for testing fiber optic cable
N
$ 29,000
$
$ 29,000
Y
performance. The city has over 100 miles of fiber.
Information Technology
Additional Assest Management Equipment - 3 spare laptops, 3 spare desktops,
N
$ 13,000
$
$ 13,000
Y
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
Y
Information Technology
Outdoor hardtop gazebo at the Information Technology office. This shared
N
$ 5,000
$
$ 5,000
Y
outdoor space would enhance employee well-being, provide a shaded outdoor
workspace, and support staff engagement.
Parks
ISU Shade Tree Short Course for forestry staff. Request was submitted as
N
$ 1,731
$
$ 1,731
Y
recurring. Recommended as non -recurring.
Planning
Iowa Association of Code Enforcement Officials (IowACE) Conference for the
N
$ 800
$ 559
$ 241
Y
Zoning Enforcement Officer. This conference provides training on the latest code
enforcement practices. Request was submitted as recurring. Recommended as
non -recurring.
Planning
Additional Planner to attend the National American Planning Association
N
$ 3,000
$ 2,097
$ 903
Y
Conference (APA). The conference provides valuable opportunities for
professional development, exposing attendees to the latest trends, best
practices, and innovative solutions in urban planning. Request was submitted as
recurring. Recommended as non -recurring.
Planning
City of Dubuque shirts for Planning staff. Request was submitted as recurring.
N
$ 420
$ 294
$ 126
Y
Recommended as non -recurring.
Planning
Dale Carnegie training for the Planning Technician. This training helps
N
$ 2,500
$ 1,747
$ 753
Y
participants build confidence, strengthen interpersonal and communication skills,
listen empathetically, enhance leadership abilities, motivate others, and manage
attitudes and stress to perform at their best.
Page 179 of 304
Department Description R/N ADDL ADDL Net Tax Rec'd
Expense Revenue Impact
NON -RECURRING DECISION PACKAGE COSTS
Planning
Desktop to laptop upgrade for Planning Professional Administrative Assistant
N
$ 1,010
$ 706
$ 304
Y
Planning
Upgrade computer to engineering computer for two Assistant Planners.
N
$ 1,200
$ 839
$ 361
Y
Planning
Leadership Dubuque training for Assistant Planner. The program provides an
N
$ 1,570
$ 1,097
$ 473
Y
opportunity to learn about local community resources, government, businesses,
education, and economic development while strengthening leadership skills,
exchanging ideas, building relationships with leaders, and expanding
professional networks.
Planning
Safe Routes to School Bike Gear. The accessories to be purchased include 24
N
$ 563
$
$ 563
Y
bike helmets and 20 bike locks.
Police
Mental health wellness checks for each officer. Wellness checks entail an annual
N
$ 11,400
$
$ 11,400
Y
confidential visit with a licensed psychologist experienced with first responders
and occupational resilience. Request was submitted as recurring. Recommended
as non -recurring.
Police
Non -Profit Special Event Volunteers
N
$ 5,000
$
$ 5,000
Y
Police
Professional Development funds to allow up to 25 officers per year for
N
$ 40,000
$
$ 40,000
Y
professional development training. Request was submitted as recurring.
Recommended as non -recurring.
Police
Repurpose two squad cars to conduct annual state -mandated vehicle operation
N
$ 19,690
$ (20,000)
$ 39,690
Y
training.
Public Works
Public Works Employee Training (this request includes funding in Solid Waste
N
$ 9,600
$
$ 9,600
Y
Sanitary Sewer, Road Use Tax and General Fund). Request was submitted as
recurring. Recommended as non -recurring.
Public Works
Employee recognition including City swag, additional leave time, meals, etc.
N
$ 1,500
$
$ 1,500
Y
Request was submitted as recurring. Recommended as non -recurring.
Recreation
Wi-Fi access at the McAleece ballfield complex.
N
$ 2,500
$
$ 2,500
Y
Recreation
Increase in two supervisors' and business development manager's education
N
$ 3,600
$
$ 3,600
Y
reimbursement so they can attend high quality continuing education opportunities.
Request was submitted as recurring. Recommended as non -recurring.
Recreation
4 desktop to laptop upgrades
N
$ 1,800
$
$ 1,800
Y
Recreation
McAleece ballfield safety net replacement
N
$ 3,000
$
$ 3,000
Y
Recreation
Wi-Fi access throughout the Bunker Hill Admin building to be used by Golf
N
$ 2,500
$
$ 2,500
Y
patrons and event/rental/meeting users.
Recreation
Bunker Hill Outdoor sound system for events and emergency communications.
N
$ 9,647
$
$ 9,647
Y
Recreation
Bunker Hill Clubhouse additional fryer. There is currently one fryer, however, to
N
$ 1,600
$
$ 1,600
Y
expand menu options, an additional fryer would be needed.
TOTAL GENERAL FUND NON -RECURRING PACKAGES 1,135,709 152,242 983,467
Page 180 of 304
Prepared by: Jennifer Larson. City of Dubuque 50 W. 1311 St. Dubuque, IA 52001, 563.589-4322
Return to: Jennifer Larson, City of Dubuque, 50 W. 13th St. Dubuque, IA 52001, 563.589-4100
RESOLUTION NO. 99-26
RESOLUTION APPROVING THE MAXIMUM PROPERTY TAX DOLLARS
REQUESTED FOR FISCAL YEAR JULY 1, 2026 — JUNE 30, 2027
Whereas, Iowa Code Section 24.2A requires public hearing on the property tax
levy for the fiscal year ending June 30, 2027, before holding a hearing on the
proposed annual budget; and
Whereas, on March 2, 2026, the City Council adopted a resolution setting the
public hearing for 630 p.m. on March 23, 2026; and
Whereas, pursuant to Iowa Code 362.3 the Notice of Public Hearing was
published; and
Whereas, on March 23, 2026, the City Council held the public hearing providing
residents and taxpayers of the City interest in the City's proposed property tax levy
an opportunity to present oral or written testimony to the City Council on the
property tax levy and arguments in favor or against the property tax levy; and
Whereas, the City Council has considered the proposed Fiscal Year 2027
maximum property tax levy; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA THAT:
Section 1. The property tax rate for Fiscal Year 2027 is hereby approved at
$10.16480 (amounting to $31,940,934).
Section 2. The property tax rate shall be included in the proposed budget for the
City at the subsequent annual budget hearing.
Passed, adopted and approved this 23rd day of March 2026.
Brad a gh, Mayor
Attest:
1 , ! 1� �) ,z�441
Adrienne N. Breitfelder, City Clerk
3/5/26, 11:05 AM
Local Government Property Valuation System
CITY NAME: NOTICE OF PUBLIC HEARING - CITY OF DUBUQUE - PROPOSED PROPERTY TAX LEVY
DUBUQUE
Fiscal Year July 1, 2026 - June 30, 2027
CITY #: 31-288
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 CityAg 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 $100,0005110,000
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
2025/2026
Budget Year
Proposed
2026/2027
Percent
Change
City Regular Commercial
2,0751
2,326
12.10
Note: Actual/Assessed Valuation is multiplied by a Rollback Percentage to get to the Taxable Valuation to calculate Property taxes. Residential and 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.
https://dom-localgov.iowa.gov/budget-renderer?id=24636 Page 182 of J64
3/5/26, 11:05 AM
Local Government Property Valuation System
https://dom-localgov.iowa.gov/budget-renderer?id=24636 Page 183 of S64
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
03/06/2026
and for which the charge is 131.05
i✓
Subscribed to before me, a Notary Public in and for
Dubuque County, Iowa,
this 6th day of March, 2026
P
Notary ibli in and for Dubuque County, Iowa.
'At s JANET K. PAPE
Z Commission Number 199659
My Commission Expires
/owa 12/11/2028
Page 184 of 304
CITY NAME: NOTICE OF PUBLIC HEARING - CITY OF DUBUQUE - PROPOSED PROPERTY TAX LEVY
DUBUQUE Fiscal Year July 1, 2026 - June 30, 2027 CITY #: 31-288
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.citvofdubuoue.org
City Telephone Number
-
tJ0.5) >tfY-43Y5
Current Year
Budget Year
Budget Year
Iowa Department of Management
Certified
Effective Property
Proposed
Property Tax
Tax
Property Tax
Taxable Valuations for Non -Debt Service
2025 - 2026
2026 - 2027
2026 - 2027
Consolidated General Fund
2,893,074,400
3,072,271,414
3,072,271,414
Operation& Maintenance of Public Transit
22,523,944
22,523,944
23,450,064
Aviation Authority
1,882,118
1,882,118
2,196,766
Liability, Property & Self Insurance
0
1,513,541
0
1,513,541
0
1,384,919
Support of Local Emergency Mgmt. Comm.
0
Unified Law Enforcement
0
0
Police & Fire Retirement
0
0
0
FICA & IPERS (If at General Fund Limit)
0
2,962,537
0
2,962,537
0
3,966,917
Other Employee Benefits
0
Capital Projects (Capital Improv. Reserve)
0
0
Taxable Value for Debt Service
0
3,480,914,961
0
3,766,888,485
0
3,766,888,485
Debt Service
280,283
280,283
282,630
CITY REGULAR TOTAL PROPERTY TAX
29,280,283
29,280,283
31,281,630
CITY REGULAR TAX RATE
1062,423
962,423
1281,295
Taxable Value for City Ag Land
3,458,250
3,460,836
3,460,836
Ag Land
CITYAG LAND TAX RATE
10,371
10,371
10,3962.99892
Tax Rate Comparison -Current VS. Proposed
2.99667
3.00375
Residential property with an
Current Year
Budget Year
Actual/Assessed Valuation of$100,000/$110,000
Certified
Proposed
percent
2025/2026
2026/2027
Change
g
City Regular Residential
477
498
4.40
Commercial property with an
Current Year
Budget Year
Actual/Assessed Valuation of $300,000/$330,000
Certified
Proposed
Percent
2025/2026
2026/2027
Change
City Regular Commercial
Note: Actual/AssessedActual/Assessed Valuation is mu ttplied by a Rollback Perrentave in aer r fl—'r.e
2,075
v.,, _.: ._ __ _.. _._
2,326
__ _ ... . ... .
12.10
I- me sauIe rouoacK percentage through $150,000 of actual/assessed valuation. - - - " " " ' ` cvuimercual properues
Reasons for tax increase if proposed exceeds the current:
Essential wage adjustments for current agreements, upcoming negofiations, 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. AM
Page 185 of 304
THE CITY OF
DUB TE
Masterpiece on the Mississippi
CRENNA M. BRUMWELL, ESQ.
CITY ATTORNEY
TO: MAYOR BRAD M. CAVANAGH AND MEMBERS OF THE CITY COUNCIL
DATE: FEBRUARY 26, 2026
RE: BUDGET HEARING REMINDERS
Dubuque
MI -America Ciq
wureuuvKarvzr.
2007-2012.2013
2017*2019
This is my annual budget process memo for the City Council. Sadly, there is no guidance
or rules related to how individual budget hearings are handled in the state code as our
process is unique and not specifically required by state law.
Previously, the City Attorneys for the largest cities in Iowa and City Clerks were polled on
their processes. We asked if communities had a well -developed process for how items
should be set aside during the departmental presentations/hearings for
consideration/deletion/amendment at the final budget hearing. Attorneys' responding
historically have included those for:
• Des Moines
• West Des Moines
• Iowa City
• Ames.
Unfortunately, none of the responding cities had a clearly outlined process for how
amendments are handled.
It appears other cities handle proposed changes like any other amendment by the Council
with a voice vote. If the amendment passes it becomes part of the roll call vote on the
budget, as amended, at the Final Budget Hearing.
The City Council has the ability to agree upon how requests for further consideration
(adding or deleting funding in the budget) will be handled. I have identified a few ways
this could occur, but there may be other options with a creative bunch such as yourselves.
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 589-4381 / FAx (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org
PRggel66 of 900
Options
1) Single Member Holdover: If one (1) member wants an item held for further
discussion or consideration the item is held for discussion at the Final
Budget Hearing.
2) Single Member Ask, Majority Agrees, Final Budget Hearing Consideration:
If one (1) member wants an item held for further discussion or consideration,
an informal poll of the Council occurs. If four (4) members agree the item
should be held the item is held for discussion at the Final Budget Hearing.
If there are not four (4) members in agreement to set the item aside for
further consideration the item isn't held over for further consideration.
3) Single Member Ask, Majority Agrees, Budget Hearing Consideration: If one
(1) member wants an item held for further discussion or consideration, an
informal poll of the Council occurs. If four (4) members agree the item
should be held the item is held for discussion at the end of the departmental
budget hearinas for the evenina*.
If there are not four (4) members in agreement to set the item aside for
further consideration the item isn't held over for further consideration.
*This would require adding an agenda item to each evening of departmental
budget hearings for consideration of items held for further discussion.
4) Item by Item Motion: Members could make motions at each of the hearings
for specific items to be added or deleted from a departmental budget. The
prevailing vote of the Council would govern.
Option #2 above is the process that has been used historically by the City Council.
Any items that are set aside for further consideration during the process need to be
discussed and resolved at, or prior to, the Final Budget Hearing prior to a vote on the
Final Budget. Any changes in departmental budgets to increase funding would require
an offset decreasing funding somewhere else within the budget.
State Program Information
The State does not allow the City to exceed the amount published in the public hearing
notice for planned expenditures in each of the nine program areas in the final adopted
budget. The nine program areas defined by the State for reporting purposes include:
• Public Safety
• Public Works
• Health and Social Services
• Culture and Recreation
2
PIRggel62 of 900
• Community and Economic Development
• General Government
• Debt Service
• Capital Projects
• Business Type
The City must assign its various cost centers to one of these programs based on reporting
guidelines prepared by the Iowa Department of Management. In addition, the property
tax levy adopted must equal or be less than the property tax levy published in the notice
of public hearing. This is in accordance with the administrative rules which are intended
to implement Iowa Code chapters 384 and 388.
Note: On the state programs areas, revising the budget recommendation if the expense
exceeds the state program amount published requires the budget changes to be included
in the first budget amendment of the new fiscal year.
Open Meetings Reminder
As a reminder entering budget season, the standard rules for City Council meetings apply
to budget work sessions and hearings. All discussions on agenda items should be public
i.e. no private exchanges in any electronic formats with each other, staff, or the public.
This maintains compliance with the open meetings law.
This is for informational purposes and if you have any questions, please reach out.
cc: Michael C. Van Milligen, City Manager
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Adrienne N. Breitfelder, City Clerk
3
PIRggel68 of 900
Adrienne Breitfelder
From: City of Dubuque <noreply-dubuque@gscend.com>
Sent: Monday, March 23, 2026 3:43 PM
To: Adrienne Breitfelder
Subject: A new Service Request has been created [Request ID #230218] (Contact City Council) -
Dubuque, IA
Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender
information and password over email! Report
Dubuque, IA
A new service request has been filed.
ID 230218
Date/Time 3/23/2026 3:43 PM
Type Contact City Council
Address 4800 CHAVENELLE RD, Dubuque
Origin Website
Comments Regarding the proposed tax rate increase:
I am advocating for a 0% increase in the tax rate.
with the rise of property values, I believe the
increase that drives is enough burden on the
citizens of Dubuque. I always here Mayor
Cavanaugh talking about the difficulty of the
budget process as it is unknown what additional
services citizens will ask for. I know citizens also
ask for a cuts of programs as well, and this is
rarely done by the city council. I believe
increases of services should be offset by cuts in
services. For instance, I believe cutting the
greenhouse would make great fiscal sense as I
believe the city can purchase the same plants
and flowers the greenhouse produces from
commercial growers who have much higher
volumes to spread their costs over. When you
consider the costs of the building, equipment,
and manpower on top of the inputs(seed,
fertilizer, soils, pots), we are paying way too
much for what actually is produced in our own
Page 189 of 304
greenhouse.
The city talks a lot about being one of the lowest
tax rates of the largest cities in Iowa. To get the
entire picture of the total financial burden on
citizens, where does Dubuque fall on the same
list with water, sewer, storm water, and refuse
rates? This should be known to all citizens. I
know Waterloo is highest for tax rates but lowest
on water and sewer rates. I also would also like
to know how much of the enterprise funds
(water, sewer, storm water fees) go into the
general fund? It may not be as much as it once
was because we have had to use that money to
prop up the water and sewer infrastructure that
was ignored for years. Nonetheless, with the
massive increases in these rates the past couple
of years, there are probably still substantial
dollars going into the general fund from these
enterprise funds, which artificially keeps the tax
rate low. Also interested in the landfill and the
tipping fees we receive from 3 states. How is this
money used and does it do the same thing in
keeping the tax rate artificially low by ending up
in the general fund?
Finally, I am wondering in the improvement
packages why some have a "revenue" column in
addition to "expense"? See attached. With the
city manager search as a $50,000 expense, it
shows "revenue" of $38,530 for a net tax impact
of $11,470. Obviously, this is money from
somewhere else and is it tax dollars already
collected? If so, where did it come from? Again,
is it there to disguise the net tax impact and
actual city spending?
Thank you for your consideration and thank you
for you service to the city.
Submitter McDonald, Rob D
3399 EAGLE POINT DR Dubuque, Iowa 52001
Dubuque, IA 52001
563-543-0220
563-582-2232
rmcdonald@aymcdonald.com
City Council Budget.ipg
Dubuque, IA
Page 190 of 304
Adrienne Breitfelder
Subject: FW: city street paving project
Begin forwarded message:
From: "mary m. sand" <marym.sand@yahoo.com>
Date: March 14, 2026 at 10:57:07 AM CDT
To: Danny Sprank <Dsprank@cityofdubuque.org>
Subject: city street paving project
This sender is trusted.
Goodmorning. I read in the TH today about the street
asphalt project. My street, Goethe, is in phase 3. The
article states lead lines will be removed as well. The article
does NOT state as to wether the home owners will be
assessed. If you are able to clarify as to whether or not
will have to pay for this project, I would appreciate it as
being on limited income I would have to make
arrangements for such an expense.
In addition, I am really disgusted with the proposal for an
increase in property taxes. My taxes are
ridiculous. Everyone wants a handout from NICC, to the
city, to the county, and the school district. Reign in the
spending and work to be better stewards of the tax payer
dollar. I have worked hard my whole life to enjoy
retirement. I feel as though I am being taxed right out of
my home.
And why is the council waiting for the city managers
retirement date? He needs to go now. And I am not the
only one that feels that way. Start the search now for a
new city manager.
1
Page 191 of 304
Thank you for your time.
Regards,
Mary Sand
Page 192 of 304
Adrienne Breitfelder
Subject: FW: raise in taxes
From: democ57@aol.com
Date: March 2, 2026 at 2:44:27 PM CST
To: Danny Sprank <Dsprank@cityofdubuque.org>
Subject: raise in taxes
You don't often get email from democ57@aol.com. Learn why this is important
Caution! This message was sent from outside your organization. Never give your login
information and password over email! Allow sender I Block sender I Report
Hi Mr. Sprank, My husband and I have lived on Peru Road since 1990. We are senior
citizens on a fixed income, and we have seen our house taxes sky rocket over the
years. We would like to voice our opinion that it is not fair that the low income areas of
the city have our taxes raised higher than the rich people in the city with mansions. I am
writing to you so you can speak for the people on the North End that have lived here for
years that if they keep raising our taxes we would have to be forced to move out of our
homes. I don't know if they want to get rid of the elderly and get young people to move
in the North End, or what the reasoning is. Please stand up for us and let the city
council know how the residents on the North End feel. Thanks for your time.
Chris Luchsinger 716 Peru Road Dubuque, IA
Page 193 of 304
THE C
DUUB--'*.-TE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All-Amedu City
2007-2012.2013
2017*2019
SUBJECT: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 18, 2026
Chief Financial Officer Jennifer Larson is recommending City Council approval of the
resolution for the Fiscal Year 2027 proposed property tax rate and dollars and the Fiscal
Year 2027 Budget and Fiscal Policy Guidelines.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollar amount as is or decrease it. li
cannot be increased.
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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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. This would represent a 3.00% or
$26.68 property tax increase for the average Dubuque homeowner.
Page 194 of 304
Type
PropertiesProperty
..
Payment
Payment
Residential:
$889.20
$915.87
+$26.67
+3.0%
Avg. value - $213,211
Commercial:
$150,000 value &
433
381
$716.01
$679.03
-$36.98
-5.2%
below
Commercial:
$150,001-$300,000
232
225
$2,074.61
$2,051.27
-$23.34
-1.1%
value
Commercial:
147
167
$3,433.21
$3,423.52
-$9.69
-0.3%
$300,001-$450,000
Commercial:
588
636
$4,253.76
$5,023.81
+$770.05
+18.1 %
Avg. Value = $624,927
PropertyProperties
Properties
..Property
Payment
Payment
Industrial:
$150,000 value & below
8
8
$716.01
$679.03
-$36.98
-5.2 %
Industrial:
$150,0014300,000
11
9
$2,074.61
$2,051.28
-$23.33
-1.1 %
value
Industrial:
4
3
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
Industrial:
58
58
$5,090.27
$6,000.54
$910.27
+17.9 %
Avg. Value = $731,693
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.
Based on the information the city has today, it appears if the City Council approves the
recommendation the City of Dubuque would still have the lowest property tax rate of the
eleven cities in the State of Iowa with a population over 50,000.
PA
Page 195 of 304
In the current fiscal year, FY2026, the average of the other 10 cities was 55% higher
than Dubuque's property tax rate, and the highest city, Waterloo, had a rate 116%
higher than Dubuque.
For FY2027 there are $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. In the case of the 9 new Firefighter positions
they would be funded from a Federal SAFER Grant, ambulance fees, and eventually
property taxes. The recommended improvement package listing is attached.
The current recommendation for Fiscal Year 2027 is a 3% increase in property tax cost
to the average homeowner, which generates $2.1 million in additional property tax
revenue over Fiscal Year 2026. Each 1 % reduction in the cost increase represents
approximately $300,000 less in property tax revenue.
Change in Avg. Residential Increase
City Tax Payment
in Tax Revenue from
Fiscal Year 2026
% Increase'
•1
% Increase'
• 1
3% Increase
If the City Council chooses an amount of less than 3%, it could impact the
recommendations to fund improvement packages, and the ability of the city to fund
grant programs.
There will be seven City Council special meetings prior to the adoption of the Fiscal
Year 2027 budget before the state mandated deadline of April 30, 2026.
The recommended maximum property tax dollars in FY 2027 is $31,940,934 (tax
rate of $10.1648) or a 6.93% increase over FY2026 property tax dollars.
3
Page 196 of 304
I concur with the recommendation and respectfully recommend Mayor and City Council
approval.
MCVM:jml/sv
Attachments
cc: Crenna Brumwell, City Attorney
Michael C. Van Milligen
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
N
Page 197 of 304
THE CITY OF
Dubuque
D UB E
All•America city
n�.,
Masterpiece on the Mississippi
�`p pp
zoo�.o 13
zoi7*20�zoi9
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 19, 2026
1 am recommending approval of the resolution for the Fiscal Year 2027 proposed
property tax rate and dollars and the Fiscal Year 2027 Budget and Fiscal Policy
Guidelines as required by Section 384.15A of the Code of Iowa.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollars as proposed 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
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 offset
Page 198 of 304
with an increase in the Special Revenue levies. As this offset occurs each year, the
special revenue levies will reach their maximums removing this option.
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.
•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.
Page 199 of 304
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 October 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. While the City of Dubuque will be issuing
new debt, 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 $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. The recommended improvement package
listing is attached.
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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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
property tax increase for the average Dubuque homeowner.
Page 200 of 304
Property
Propertie
Propertie..Property
Tax
Change
Change
Residential:
S
S
Payment
$889.20
Payment
$915.87
$26.67
3.0 %
Avg. value - $213,211
Commercial:
$716.01
$679.03
-$36.98
-5.2 %
$150,000 value & below
433
381
Commercial:
$2,074.61
$2,051.27
-$23.34
-1.1 %
$150,001-$300,000 value
232
225
Commercial:
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
147
167
Commercial:
$4,253.76
$5,023.81
$770.05
18.1 %
Avg. Value = $624,927
588
636
Property
Propertie
Propertie..Property
Tax
Change
Change
Industrial:
S
S
Payment
$716.01
Payment
$679.03
-$36.98
-5.2 %
$150,000 value & below
8
8
Industrial:
$2,074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
11
9
Industrial:
$3,433.21
$3,423.52
-$9.69
-0.3 %
$300,001-$450,000
4
3
Industrial:
$5,090.27
$6,000.54
$910.27
+17.9 %
Avg. Value = $731,693
58
58
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:
Page 201 of 304
Fiscal Year
City Tax Rate
% Change in Tax Rate
FY 2027
$10.1648
3.00%
FY 2028
$10.3519
1.84%
FY 2029
$10.5440
1.85%
FY 2030
$10.7802
2.24%
FY 2031
$11.0832
2.32%
PropertyFiscal "City"
Tax Askings Tax
Askings
Residential
•.
PropertyYear
•. •
..
FY
2026
$29,872,253
FY
2027
$31,940,934
+6.93%
+3.00%
+$33.38
FY
2028
$33,157,748
+3.81
%
+1.84%
+$16.86
FY
2029
$34,446,057
+3.89%
+1.85%
+$17.30
FY
2030
$35,920,816
+4.28%
+2.24%
+$21.29
FY
2031
$37,660,827
+4.84%
+2.32%
+$23.59
The recommended guideline is a 3.00% or $26.67 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.
Current recommendation is a 3% increase to the average homeowner, which generates
$2.1 million in additional property tax revenue over Fiscal Year 2026. Each 1 %
reduction is approximately $300,000 in property tax revenue.
Change in Avg.
Increase in Tax Revenue
Residential
from
City Tax Payment
Fiscal Year 2026
No
'11
% Increase'
•1
'• Increase'
• 1
% Increase'
1•::
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.
Page 202 of 304
Fiscal Year 2027 City Property Tax Rate Comparison for Eleven Largest Iowa
Cities
Rank
11
City
Waterloo (FY26)
Tax Rate
$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
Dubuque has the LOWEST property tax rate as compared to the eleven largest cities in
the state. The highest rate (Waterloo (FY26)) is 114.38% higher than Dubuque's rate,
and the average is 53.12% higher than Dubuque. Dubuque's adopted FY 2027 property
tax is $10.16 (increase of 1.00% from FY 2026)
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,
Page 203 of 304
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
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.
Page 204 of 304
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 301h. 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.
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. 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
Page 205 of 304
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. 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 to $2,778,351 in
FY 2027 based on calculated projections using historical averages and
Council approved advanced life support and basic life support service fees
to match the third -party cost report. 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).
Page 206 of 304
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 $2,675,126 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 $421,050 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
were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031 were
increased 5.38%. FY 2027 will include increased employee contribution effective
January 1, 2027.
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
Page 207 of 304
Administration Capital ($344,329), an increase in employee expense ($120,888);
and a decrease in supplies and services ($114,293).
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 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
Page 208 of 304
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 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 2026 Debt
a. FY 2026 Debt Limit: The FY 2024 assessable value of the community for
calculating the statutory debt limit is $6,472,591,693, which at 5%,
indicates a total General Obligation debt capacity of $323,629,585, which
at 5%, indicates a total General Obligation debt capacity of $323,629,585.
Page 209 of 304
Based on Outstanding G.O. debt (including tax increment debt,
remaining payments on economic development TIF rebates, and
general fund lease agreement) on June 30, 2026 will be $108,410,164
(33.50% of the statutory debt limit) leaving an available debt capacity
of $215,219,421 (66.50%).
It should be noted that most of the City of Dubuque's outstanding debt is
not paid for with property taxes (except TIF), but is abated from other
revenues. Exceptions include one issuance for the replacement of a Fire
Pumper truck in the amount of $1,410,000 with debt service of $83,700 in
FY 2026 and one issuance for the franchise fee litigation settlement in the
amount of $2,800,000 with debt service of $145,000 in FY 2026. Included
in the debt is $4,661,120 of property tax rebates to businesses creating
and retaining jobs and investing in their businesses.
100%90% ° 1��11
87 /°
82% 79% 79%
87%, 72%
75% 6%
50%
25%
Statutory Debt Limit
Statutory Debt Limit Used
(as of June 30th)
53%
11
43 /°
J47%44% °
32%31%31%33%30% °
27 /° 25% °
22 /°20%
,n n n m m m T -1 -9 -1 -1 TI T1 TI -1 -1 -n T TI -1 -1
N N N N !J N N N N N W W W W W W
U1 CY) v 00 to O N W A to 0) v 00 W O " N W A M
FY16 Adopted FY26 Adopted
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
Page 210 of 304
and stormwater fees on June 30, 2026 will have a balance of $167,789,201. The
total City indebtedness as of June 30, 2026, is projected to be $289,568,909.
The total City indebtedness as of June 30, 2025, was $281,085,184. In FY 2026,
the City will have a projected $8,483,725 or 3.02% more in debt. The City is
using debt to accomplish necessary projects and to take advantage of the
attractive interest rates in the current market.
The following chart shows Dubuque's relative position pertaining to use of the
statutory debt limit for Fiscal Year 2026 compared to the other cities in Iowa for
Fiscal Year 2025 with a population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa
Cities
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
Percentage of Legal
Debt Limit Utilized
11
Des Moines FY25
$ 964,798,967
$ 573,230,000
59.41 %
10
Cedar Rapids FY 25
$ 767,559,335
$ 428,550,000
55.83 %
9
W. Des Moines (FY25)
$ 551,635,692
$ 307,090,000
55.67 %
8
Waterloo FY25
$ 267,626,798
$ 137,905,065
51.53 %
7
Sioux City (FY25)
$ 367,743,172
$ 146,935,000
39.96 %
6
Davenport (FY25)
$ 493,660,291
$ 176,195,000
35.69 %
5
Dubuque (FY26)
$ 323,629,585
$ 108,410,164
33.50 %
4
Ankeny(FY25)
$ 529,988,951
$ 97,645,000
18.42 %
3
Ames FY25
$ 328,345,527
$ 56,710,000
17.27 %
2
Iowa City FY25
$ 435,367,793
$ 65,945,000
15.15 %
1
Council Bluffs FY25
$ 427,559,692
$ 61,320,000
1 14.34 OX
Average w/o Dubuque
$ 205,152,507
36.33 1/6
75%
50%
Percent of Legal Debt Limit Utilized
33.50/°
0 35.69% 36.33% 39.96%
18.42
■
C\° Oe5 Geaa� �e5
age �
P
Page 211 of 304
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. The average of the other cities (36.33%) is
8.4% higher than Dubuque (33.50%).
Total Debt (In Millions)
$324 1 1 1 1
$302.3
$297 $290.1 $289.
295.5 $282.0 $279.9 $281.1
$285.7
$270 $274.7 $265.6 $267.4
C 2 5.9
$264.0 $250.6
244.3$241.
$243 $252.1 $249.
$216
$189
I -I
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY16 Adopted FY26 Adopted
The escalation observed in Fiscal Year 2025 is attributable to the City's decision
to issue budgetary debt for both Fiscal Year 2024 and Fiscal Year 2025 within a
single fiscal period. This approach resulted in a significant increase in the
aggregate debt reported for Fiscal Year 2025.
Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation
Program. Through a new state program, the City is able to issue $28.25 million in
revenue bonds payable from the 5 percent State Sales Tax increment for projects in the
Bee Branch Watershed allowing the City to complete the Bee Branch Creek
Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete
North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water
Plant Flood Control and complete 17t" Street Storm Sewer over the next twenty years.
The ten year history of the City's use of the statutory debt limit is as follows:
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY24
FY25
FY26
86.54%
66.06%
59.79%
52.90%
46.91 %
43.51 %
43.33%
39.36%
40.07%
1 34.85%
33.50%
Page 212 of 304
As we approach the preparation of the FY 2027-2031 Capital Improvement Program
(CIP) the challenge is not the City's capacity to borrow money but (a) how to identify,
limit, and prioritize projects which justify the interest payments and; (b) how to balance
high -priority projects against their impact on the property tax rate.
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 "AX 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 percent of
General •Moody's
revenues)
Calculation
Increase due to American Rescue Plan Act funds received
FY 2021
40.72%
$13.2 million), frozen positions and capital ro'ects through
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 vacant positions.
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 %
of the FY, and vacant positions.
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 %1
funds.
Page 213 of 304
0
c
a�
U
a�
a-
Fund Reserve as a Percent of General Fund Revenue
55.82%
50 1 0 F
49.16% 51.
40
40.72% 40.53%
30 34.37% o
31.24% 27.00 /o
29.06% 27.000/27.00% 27.00%
20
10
FY FY FY FY FY FY FY FY FY FY FY FY
19 20 21 22 23 24 25 26 27 28 29 30
Fiscal Year
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 34.37% of general fund revenues as a percent of general
fund revenues computed by the accrual basis or 52.33% 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 $32,347,743. 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.
Page 214 of 304
General Fund Reserve Projections:
Year
FY2021
Contribution
$500,000
Spendable...
General Fund Cash
Reserve
$31,089,468
Projected
Revenue
40.72 %
MethodologyFiscal
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
$415,247
$38,147,743
40.53 %
52.33 %
FY2026
$1,823,234
$32,347,743
34.37 %
49.01 %
FY2027
$
$25,412,743
27.00 %
45.03 %
FY2028
$
$25,412,743
27.00 %
41.06 %
FY2029
$
$26,388,917
1 27.00 %1
37.08 %
FY2030
$
$25,412,743
1 27.00 %1
35.65 0/6
Timeline of Public Input Opportunities
The Budget Office conducts year-round community outreach with Balancing Act using
print and digital marketing and presentations.
• November: The City Manager hosted an evening public budget input meeting.
Open Budget
https://dolIarsandcents.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.cityofdubugue.org/
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Page 215 of 304
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 $31,940,934 (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 approve the resolution for the Fiscal
Year 2027 proposed property tax rate and dollars and approve the Fiscal Year 2027
Budget and Fiscal Policy Guidelines.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Laura Bendorf, Budget Manager
Page 216 of 304
THE C
DUUB--'*.-TE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All-Amedu City
2007-2012.2013
2017*2019
SUBJECT: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 18, 2026
Chief Financial Officer Jennifer Larson is recommending City Council approval of the
resolution for the Fiscal Year 2027 proposed property tax rate and dollars and the Fiscal
Year 2027 Budget and Fiscal Policy Guidelines.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollar amount as is or decrease it. li
cannot be increased.
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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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. This would represent a 3.00% or
$26.68 property tax increase for the average Dubuque homeowner.
Page 217 of 304
Type
PropertiesProperty
..
Payment
Payment
Residential:
$888.20
$915.88
+$26.68
+3.0%
Avg. value - $213,211
Commercial:
$150,000 value &
433
381
$716.01
$679.03
-$36.98
-5.2%
below
Commercial:
$150,001-$300,000
232
225
$2,074.61
$2,051.28
-$23.33
-1.1%
value
Commercial:
147
167
$3,433.21
$3,423.53
-$9.38
-0.3%
$300,001-$450,000
Commercial:
588
636
$4,253.76
$5,023.83
+$770.07
+18.1 %
Avg. Value = $624,927
PropertyProperties
Properties
..Property
Payment
Payment
Industrial:
$150,000 value & below
8
8
$716.01
$679.03
-$36.98
-5.2 %
Industrial:
$150,0014300,000
11
9
$2,074.61
$2,051.29
-$23.32
-1.1 %
value
Industrial:
4
3
$3,433.21
$3,423.53
-$0.28
-0.3 %
$300,001-$450,000
Industrial:
58
58
$5,090.27
$6,000.56
$910.29
+17.9 %
Avg. Value = $624,927
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.
Based on the information the city has today, it appears if the City Council approves the
recommendation the City of Dubuque would still have the lowest property tax rate of the
eleven cities in the State of Iowa with a population over 50,000.
PA
Page 218 of 304
In the current fiscal year, FY2026, the average of the other 10 cities was 55% higher
than Dubuque's property tax rate, and the highest city, Waterloo, had a rate 116%
higher than Dubuque.
For FY2027 there are $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. In the case of the 9 new Firefighter positions
they would be funded from a Federal SAFER Grant, ambulance fees, and eventually
property taxes. The recommended improvement package listing is attached.
The current recommendation for Fiscal Year 2027 is a 3% increase in property tax cost
to the average homeowner, which generates $2.1 million in additional property tax
revenue over Fiscal Year 2026. Each 1 % reduction in the cost increase represents
approximately $300,000 less in property tax revenue.
Change in Avg. Residential Increase
City Tax Payment
in Tax Revenue from
Fiscal Year 2026
% Increase'
•1
% Increase'
• 1
3% Increase
If the City Council chooses an amount of less than 3%, it could impact the
recommendations to fund improvement packages, and the ability of the city to fund
grant programs.
There will be seven City Council special meetings prior to the adoption of the Fiscal
Year 2027 budget before the state mandated deadline of April 30, 2026.
The recommended maximum property tax dollars in FY 2027 is $31,940,934 (tax
rate of $10.1648) or a 6.93% increase over FY2026 property tax dollars.
3
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I concur with the recommendation and respectfully recommend Mayor and City Council
approval.
MCVM:jml/sv
Attachments
cc: Crenna Brumwell, City Attorney
Michael C. Van Milligen
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
N
Page 220 of 304
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Public Hearing for the Fiscal Year 2027 proposed property tax rate and
dollars and the Fiscal Year 2027 Budget and Fiscal Policy Guidelines
DATE: March 19, 2026
I am recommending approval of the resolution for the Fiscal Year 2027 proposed
property tax rate and dollars and the Fiscal Year 2027 Budget and Fiscal Policy
Guidelines as required by Section 384.15A of the Code of Iowa.
At this public hearing, the only options available to City Council are to approve
the proposed Fiscal Year 2027 tax rate and dollars as proposed 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
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.
Page 221 of 304
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 offset
with an increase in the Special Revenue levies. As this offset occurs each year, the
special revenue levies will reach their maximums removing this option.
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.
•Information on how to access the city's internet site, the city's statements, and
other budget documents for prior fiscal years.
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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 October 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. While the City of Dubuque will be issuing
new debt, 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 $2,968,870 in general fund improvement package requests.
These guidelines include an estimated $659,063 for recurring and $974,917 for non-
recurring improvement packages funded by a portion of the $5.3 million in internal loans
repaid to the General Fund by the Greater Downtown TIF District and increased
ambulance fees. Future years of the recurring improvement packages will be funded by
a portion of the 25% of Greater Downtown TIF District that will be returned to taxing
bodies in Fiscal Year 2028 and beyond. The recommended improvement package
listing is attached.
3
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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 $31,940,934 in
property tax revenue to support the general fund. The FY2027 budget guidelines
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
property tax increase for the average Dubuque homeowner.
FY 2026 Proposed
Property Tax Rate $ 10.0637 $ 10.1648 1 1.00 % $0.10
Property Tax Asking $29,872,2531 $31,940,934 6.93 % $2,068,681
Property
Properties..erties
Property Tax Property
Residential:
Payment Payment I
$888.20 $915.88 +$26.68
+3.0%
Avg. value - $213,211
Commercial:
$716.01
$679.03
-$36.98
-5.2%
$150,000 value & below
433
381
Commercial:
$2,074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
232
225
Commercial:
$3,433.21
$3,423.53
-$9.38
-0.3%
$300,001-$450,000
147
167
Commercial:
$4,253.76
$5,023.83
+$770.07
+18.1 %
Avg. Value = $624,927
588
636
4
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Property
Properties..erties
Property Tax
Payment
Property
Payment
Industrial:
$716.01
$679.03
-$36.98
-5.2 %
$150,000 value & below
8
8
Industrial:
$2,074.61
$2,051.29
-$23.32
-1.1 %
$150,001-$300,000 value
11
9
Industrial:
$3,433.21
$3,423.53
-$0.28
-0.3 %
$300,001-$450,000
4
3
Industrial:
$5,090.27
$6,000.56
$910.29
+17.9 %
Avg. Value = $624,927
58
58
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
COW TaxRate,---
% Change in Tax Rate
FY
2027
$10.1648
3.00%
FY
2028
$10.3519
1.84%
FY
2029
$10.5440
1.85%
FY
2030
$10.7802
2.24%
FY
2031
$11.0832
2.32%
Fiscal
FY
2026
"City" Property % Changein
$29,872,253
% Impact on Avg.
$ Impact on Avg.
FY
2027
$31,940,934
+6.93%
+3.00%
+ 33.38
FY
2028
$33,157,748
+3.81 %
+1.84%
+ 16.86
FY
2029
$34,446,057
+3.89%
+1.85%
+ 17.30
FY
2030
$35,920,816 1
+4.28%
+2.24%
+ 21.29
FY
2031
$37,660,827 1
+4.84%
+2.32%
+ 23.59
5
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The recommended guideline is a 3.00% or $26.67 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.
Current recommendation is a 3% increase to the average homeowner, which generates
$2.1 million in additional property tax revenue over Fiscal Year 2026. Each 1 %
reduction is approximately $300,000 in property tax revenue.
Change in Avg. Increase
Residential
City Tax Payment
in Tax Revenue
from
Fiscal Year 2026
'. Increase'
•1
'. Increase'
• 1
3% Increase
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.
6
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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
Dubuque has the LOWEST property tax rate as compared to the eleven largest cities in
the state. The highest rate (Waterloo (FY26)) is 114.38% higher than Dubuque's rate,
and the average is 53.12% higher than Dubuque. Dubuque's adopted FY 2027 property
tax is $10.16 (increase of 1.00% from FY 2026)
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
7
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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
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.
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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.
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. 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.
9
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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. 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.
10
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b. Ambulance Fees increased from $1,756,870 in FY 2026 to $2,778,351 in
FY 2027 based on calculated projections using historical averages and
Council approved advanced life support and basic life support service fees
to match the third -party cost report. 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).
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 $2,675,126 to the General Fund.
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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 $421,050 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
were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031 were
increased 5.38%. FY 2027 will include increased employee contribution effective
January 1, 2027.
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 ($114,293).
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.
12
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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
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
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meant to convey the creditworthiness of the issuer as a whole without
regard to a specific borrowing, and business -type enterprise funds are now
being considered together with general fund revenues and balances in the
determination of financial performance.
Under the new methodology, there are two metrics that contribute to
financial performance. Available Fund Balance Ratio ("AFBR") = (Available
Fund Balance + Net Current Assets/Revenue) and Liquidity Ratio ("LR") =
(Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35,
and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of
2022 in connection to its annual issuance of bonds. At that time, Moody's
calculated the City's AFBR to be 45.2%, and its LR to be 59.8%. The
balances used in these calculations were likely elevated due to unspent
ARPA funds. The change in methodology will now consider revenues and
net assets from business -type activities in these calculations. As such, the
City's general obligation rating will now be directly impacted by the financial
performance of enterprise funds. Establishing rates and charges adequate
to provide both debt service coverage and significant liquidity will be
necessary to maintain the City's ratings.
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 2026 Debt
a. FY 2026 Debt Limit: The FY 2024 assessable value of the community for
calculating the statutory debt limit is $6,472,591,693, which at 5%,
indicates a total General Obligation debt capacity of $323,629,585, which
at 5%, indicates a total General Obligation debt capacity of $323,629,585.
Based on Outstanding G.O. debt (including tax increment debt,
remaining payments on economic development TIF rebates, and
14
Page 234 of 304
general fund lease agreement) on June 30, 2026 will be $108,410,164
(33.50% of the statutory debt limit) leaving an available debt capacity
of $215,219,421 (66.50%).
It should be noted that most of the City of Dubuque's outstanding debt is
not paid for with property taxes (except TIF), but is abated from other
revenues. Exceptions include one issuance for the replacement of a Fire
Pumper truck in the amount of $1,410,000 with debt service of $83,700 in
FY 2026 and one issuance for the franchise fee litigation settlement in the
amount of $2,800,000 with debt service of $145,000 in FY 2026. Included
in the debt is $4,661,120 of property tax rebates to businesses creating
and retaining jobs and investing in their businesses.
Statutory Debt Limit
Statutory Debt Limit Used
(as of June 30th)
100%90%87/o o II —
82% 79% 79%
° 87% 72% 74%70% �L
75/0 66% 66%66%
60% 62%
53%
°
50% U 47% 44 /943% - �
36%36%34%33%32%31%31%33%27 /°
30% o
22 /0
I I 25% °
25% u 20%
HHLdd]LL��
JhLjL,]L�
-1 —n TI TI -1 11 TI T TI -1 -1 TI T1 TI -1 -1 —n T1 TI -1 -1
N N N N N N N N W W W W W W
Ul M v 00 ILO CD W A (n M v 00 C0 O N W A Un
FY16 Adopted FY26 Adopted
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
15
Page 235 of 304
and stormwater fees on June 30, 2026 will have a balance of $167,789,201. The
total City indebtedness as of June 30, 2026, is projected to be $289,568,909.
The total City indebtedness as of June 30, 2025, was $281,085,184. In FY 2026,
the City will have a projected $8,483,725 or 3.02% more in debt. The City is
using debt to accomplish necessary projects and to take advantage of the
attractive interest rates in the current market.
The following chart shows Dubuque's relative position pertaining to use of the
statutory debt limit for Fiscal Year 2026 compared to the other cities in Iowa for
Fiscal Year 2025 with a population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa
Cities
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
Percentage of Legal
Debt Limit Utilized
11
Des Moines (FY25)
$ 964,798,967
$ 573,230,000
59.41 %
10
Cedar Rapids (FY 25)
$ 767,559,335
$ 428,550,000
55.83 %
9
IW. Des Moines (FY25)
$ 551.635.692
$ 307.090.000
55.67 %
8
Waterloo (FY25)
$ 267,626,798
$ 137,905,065
51.53 %
7
Sioux City FY25
$ 367,743,172
$ 146,935,000
39.96 %
6
Davenport (FY25)
$ 493,660,291
$ 176,195,000
35.69 %
5
I Dubuque (FY26)
I $ 323,629,585
I $ 108,410,164
33.50 %
4
Ankeny (FY25)
$ 529,988,951
$ 97,645,000
18.42 %
3
Ames (FY25)
$ 328,345,527
$ 56,710,000
17.27 %
2
Iowa City (FY25)
$ 435,367,793
$ 65,945,000
15.15 %
1
Council Bluffs (FY25)
$ 427,559,692
$ 61,320,000
14.34 %
Average w/o Dubuque
$ 205,152,5071
36.33 %
16
Page 236 of 304
Percent of Legal Debt Limit Utilized
75%
50%
5.69%
25%
0%
ITT`
J�°\1\J y ���aG\�� Pre`\oo y P��e�'1 ����QJe�a e�Qo�o�J�JQJe ����G\�� a`ee�d �a.\ay e ey
G° 5 Oe5 Ge 2` 5
�e 11A
era
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. The average of the other cities (36.33%) is
8.4% higher than Dubuque (33.50%).
Total Debt (In Millions)
$324
E308.2$310.6
$302.3 I $30i7 ■
$297 1 $290.1 N ' $289.6E2�6
$295.5 $282.0 $279.9 $281.1 0 .
$285.7 $284.9
$270 = E274.7 $265. -$267.4 C $255.9 .
$264.0 $250.6 _ $264.
$244.3$241.4
$243 $252.1 $249.4
$231.1 $243.
$2%�5
$216 $226.2
$222. 21,
N I I i2 E
$
189
FY18 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
— FY16 Adopted N FY26 Adopted
The escalation observed in Fiscal Year 2025 is attributable to the City's decision
to issue budgetary debt for both Fiscal Year 2024 and Fiscal Year 2025 within a
single fiscal period. This approach resulted in a significant increase in the
aggregate debt reported for Fiscal Year 2025.
17
Page 237 of 304
Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation
Program. Through a new state program, the City is able to issue $28.25 million in
revenue bonds payable from the 5 percent State Sales Tax increment for projects in the
Bee Branch Watershed allowing the City to complete the Bee Branch Creek
Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete
North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water
Plant Flood Control and complete 17t" Street Storm Sewer over the next twenty years.
The ten year history of the City's use of the statutory debt limit is as follows:
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY24
FY25
FY26
86.54%
66.06%
59.79%
52.90%
46.91 %
43.51 %
43.33%
39.36%
40.07%
34.85%
33.50%
As we approach the preparation of the FY 2027-2031 Capital Improvement Program
(CIP) the challenge is not the City's capacity to borrow money but (a) how to identify,
limit, and prioritize projects which justify the interest payments and; (b) how to balance
high -priority projects against their impact on the property tax rate.
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 "AX 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.
18
Page 238 of 304
Fund
Fiscal
Reserve
percent of
New
Reason for change
•••
General •
Calculation
FY 2021
40.72%
Increase due to American Rescue Plan Act funds received
tpl
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%
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%
1 58.14 %
funds.
50
40
0
c
a)
a 30
20
10
Fund Reserve as a Percent of General Fund Revenue
55.82%
51.1 0
49.16%
40.72% 40.53%
34.37% 27.00%
Mx
FY FY FY FY FY FY FY FY
19 20 21 22 23 24 25 26
Fiscal Year
27.00°/27.0 0 27.00%
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 34.37% of general fund revenues as a percent of general
19
Page 239 of 304
fund revenues computed by the accrual basis or 52.33% 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 $32,347,743. 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.
General Fund Reserve Projections:
Fiscal Year -1
FY2021
Contributio
$500,000
SpendableInp City's
General Fund Cash
L Reserve
31 089 468
Projected
Revenue
40.72
Moody's
.....
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
$415 247
$38 147 743
40.53 %
52.33 %
FY2026
$1,823,234
$32,347,743
34.37 %
49.01 %
FY2027
$
$25 412 743
27.00 %
45.03 %
FY2028
$
$25 412 743
27.00 %
41.06 %
FY2029
26 388 917
27.00 %1
37.08
FY2030
$
$25 412 743
27.00 %1
35.65
Timeline of Public Input Opportunities
The Budget Office conducts year-round community outreach with Balancing Act using
print and digital marketing and presentations.
• 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
20
Page 240 of 304
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
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 $31,940,934 (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.
21
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The requested action step is for City Council to approve the resolution for the Fiscal
Year 2027 proposed property tax rate and dollars and approve the Fiscal Year 2027
Budget and Fiscal Policy Guidelines.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Laura Bendorf, Budget Manager
22
Page 242 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 1
CITY OF DUBUQU`
BUDGET & FISCAL POLICY GUIDELINES
FISCAL YEAR 2027
Page 243 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 2
Operating Budget Guidelines
The Policy Guidelines are developed and adopted by City Council during the budgeting
process to provide targets or parameters within which the budget recommendation will
be formulated, in the context of the City Council Goals and Priorities established in
October 2025. The final budget presented by the City Manager may not meet all these
targets due to changing conditions and updated information during budget preparation.
To the extent the recommended budget varies from the guidelines, an explanation will
be provided in the printed budget document. By State law, the budget that begins July
1, 2026 must be adopted by April 30, 2026.
A. RESIDENT PARTICIPATION
GUIDELINE
To encourage resident participation in the budget process, City Council will hold
multiple special meetings in addition to the budget public hearing for the purpose of
lreviewing the budget recommendations for each City department and requesting public
input following each departmental review.
The budget will be prepared in such a way as to maximize its understanding by
residents. Copies of the recommended budget documents will be accessed via the
following:
a. The City Clerk's office, located in City Hall (printed)
b. The government documents section at the Carnegie Stout Public Library
(printed)
c. On the City's website at www.citvofdubugue.org/budget (digital)
Opportunities are provided for resident input prior to formulation of the City Manager's
recommended budget and will be provided again prior to final Council adoption, both at
City Council budget special meetings and at the required budget public hearing.
Timeline of Public Input Opportunities
The Budget Office conducts year-round community outreach with Balancing Act using
print and digital marketing and presentations.
• November: The City Manager hosted an evening public budget input meeting.
Open Budget
Page 244 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 3
dollarsandcents.cityofdubug ue.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.
During Fiscal Year 2017, an additional module was added to the open data platform
which included an interactive checkbook which will allow residents to view the City's
payments to vendors. The final step will be adding performance measures to the open
data platform to allow residents to view outcomes of the services provided by the City.
Balancing Act
During Fiscal Year 2019, the City of Dubuque launched a new interactive budget
simulation tool called Balancing Act. The online simulation invites community members
to learn about the City's budget process and submit their own version of a balanced
budget under the same constraints faced by City Council, respond to high -priority
budget input questions, and leave comments.
Taxpayer Receipt
During Fiscal Year 2019, the City launched an online application which allows users to
generate an estimate of how their tax dollars are spent. The tool uses data inputted by
the user such as income, age, taxable value of home, and percentage of goods
purchased within City limits. The resulting customized receipt demonstrates an estimate
of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other
city services. This tool is in support of the City Council goal of a financially responsible
and high-performance organization and addresses a Council -identified outcome of
providing opportunities for residents to engage in City governance and enhance
transparency of City decision -making.
B. SERVICE OBJECTIVES AND SERVICE LEVELS
GUIDELINF
The budget will identify specific objectives to be accomplished during the budget year,
July 1 through June 30, for each activity of the City government. The objectives serve
as a commitment to the citizens from the City Council and City organization and
identify the level of service which the citizen can anticipate.
Page 245 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 4
C. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED
GUIDELINE
Two types of budget documents will be prepared for public dissemination. The
recommended City operating budget for Fiscal Year 2027 will consist of a
Recommended City Council Policy Budget that is a collection of information that has
been prepared for department hearings and a Residents Guide to the Recommended
FY 2027 Budget. These documents will be available on the Friday proceeding the
Budget Presentation to City Council. In FY 2027, that date is April 3, 2026.
1. Recommended City Council Policy Budget The purpose of this documents is
to focus attention on policy decisions involving what services the City
government will provide, who will pay for them, and the implications of such
decisions. The document will emphasize objectives, accomplishments and
associated costs for the budget being recommended by the City Manager.
The Recommended City Council Policy Budget will include the following
information for each department:
• Highlights of prior year's accomplishments and Future Year's Initiatives
• A financial summary
• A summary of improvement packages requested and recommended
• significant line items
• Capital improvement projects in the current year and those recommended
over the next five years
• Organizational chart for larger departments and major goals, objectives
and performance measures for each cost center within that department
• Line item expense and revenue financial summaries.
2. The Residents Guide This section of the Recommended FY 2027 Budget will
be a supplementary composite of tables, financial summaries and explanations.
It will include the operating and capital budget transmittal messages and the
adopted City Council Budget Policy Guidelines. Through graphs, charts and
tables it presents financial summaries which provide an overview of the total
operating and capital budgets.
Page 246 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 5
D. ADOPT A BALANCED BUDGET
Cei�Jl�7��l�1�
The City will adopt a balanced budget in which expenditures will not be allowed to
exceed reasonable estimated resources. The City will pay for all current expenditures
with current revenues
E. BALANCE BETWEEN SERVICES AND TAX BURDEN
Cei1Jl91:11W =
The budget should reflect a balance between services provided and the burden of
paying taxes and/or fees for those services. It is not possible or desirable for the City to
provide all the services requested by individual residents. The City must consider the
ability of residents to pay for services in setting service levels and priorities.
F. MAINTENANCE EXISTING LEVEL OF SERVICE
GUIDELINE
To the extent possible with the financial resources available, the City should attempt to
maintain the existing level of services. As often as reasonably possible, each service
should be tested against the following questions:
a. Is this service truly necessary?
b. Should the City provide it?
c. What level of service should be provided?
d. Is there a better, less costly way to provide it?
e. What is its priority compared to other services?
f. What is the level of demand for the service?
g. Should this service be supported by property tax, user fees, or a combination?
G. IMPROVE PRODUCTIVITY
r,i iinFLINE
Continue efforts to stretch the value of each tax dollar and maximize the level of City
services purchased with tax dollars through continual improvements in efficiency and
effectiveness. Developing innovative and imaginative approaches for old tasks,
reducing duplication of service effort, creative application of new technologies, and
more effective organizational arrangements are approaches to this challenge.
H. USE OF VOLUNTEERS
DISCUSSION
To respect residents who must pay taxes, the City must seek to expand resources and
supplement service -delivery capacity by continuing to increase direct resident
involvement with service delivery. Residents are encouraged to assume tasks
previously performed or provided by City government. This may require the City to
Page 247 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 6
change and expand the approach to service delivery by providing organizational skills
and training and coordinating staff, office space, meeting space, equipment, supplies
and materials rather than directly providing more expensive full-time City staff. Activities
in which residents can continue to take an active role include: Library, Recreation,
Parks, Five Flags Center, and Police.
GUIDELINE
Future maintenance of City service levels may depend partially or largely on volunteer
resident staffs. Efforts shall continue to identify and implement areas of City government
where (a) volunteers can be utilized to supplement City employees to maintain service
levels (i.e., Library, Recreation, Parks, Police) or (b) service delivery can be adopted by
to non -government groups and sponsors -- usually with some corresponding financial
support.
I. RESTRICTIONS ON INITIATING NEW SERVICE
GUIDELINE
New service shall only be considered: (a) when additional revenue or offsetting
reduction in expenditures is proposed; or (b) when mandated by state or federal law.
J. SALARY INCREASES OVER THE AMOUNT BUDGETED SHALL
BE FINANCED FROM BUDGET REDUCTIONS IN THE
DEPARTMENT(S) OF THE BENEFITING EMPLOYEES
DISCU551UN
The recommended budget includes salary amounts for all City employees. However,
experience shows that budgeted amounts are often exceeded by fact finder and/or
arbitrator awards. Such "neutrals" do not consider the overall financial capabilities and
needs of the community and the fact that the budget is carefully balanced and fragile.
Such awards have caused overdrawn budgets, deferral of necessary budgeted
expenditures, expenditure of working balances and reserves, and have generally
reduced the financial condition or health of the City government. To protect the financial
integrity of the City government, it is recommended the cost of any salary adjustment
over the amount financed in the budget is paid for by reductions in the budget of the
department(s) of the benefiting employees.
The City has five collective bargaining agreements. The current contracts expire as
follows:
.. inina U
Contract Expires-1
June 30 2030
Teamsters Local Union No. 120
Teamsters Local Union No. 120 Bus Operators
June 30, 2030
Dubuque Professional Firefighters Association
June 30 2027
Dubuque Police Protective Association
June 30 2029
International Union of Operatinq Enqineers
June 30, 2029
Page 248 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 7
GUIDELINE
Salary increases over the amount budgeted for salaries shall be financed from
operating budget reductions in the department(s) of the benefiting employees.
K. THE AFFORDABLE CARE ACT
GUIDELINE
The Affordable Care Act is a health care law that aims to improve the current health
care system by increasing access to health coverage for Americans and introducing
new protections for people who have health insurance. The Affordable Care Act (ACA)
was signed into law on March 23, 2010. Under the ACA, employers with more than 50
full-time equivalent employees must provide affordable "minimum essential coverage" to
full-time equivalent employees. The definition of a full-time equivalent employee under
the Affordable Care Act is any employee that works 30 hours per week or more on
average over a twelve-month period (1,660 hours or more). There is a twelve-month
monitoring period for part-time employees. If a part-time employee meets or exceeds 30
hours per week on average during that twelve-month period, the City must provide
health insurance. On July 2, 2013, the Treasury Department announced that it
postponed the employer shared responsibility mandate for one year. Based on the initial
requirements of the Affordable Health Care Act, the Fiscal Year 2014 budget provided
for insurance coverage effective February 1, 2014 for several part-time employees. In
addition, the Fiscal Year 2014 budget provided for making several part- time positions
full-time on June 1, 2014. Due to the delay of the employer shared responsibility
mandate for the Affordable Health Care Act, the City delayed providing insurance
coverage for eligible part-time employees and delayed making eligible part- time
positions full-time until January 1, 2015.The Standard Measurement Period was
delayed from January 1, 2013 through December 31, 2013 to December 1, 2013
through November 30, 2014 with the first provision of health insurance date being
January 1, 2015.
The impact of the Affordable Care Act on the City of Dubuque included changing nine
part-time positions to full-time (Bus Operators (4), Police Clerk Typist (1), Building
Services Custodians (3), and Finance Cashier (1) in Fiscal Year 2016. In addition, nine
part-time positions were offered health insurance benefits due to working more
than1,560 hours (Bus Operators (4), Golf Professional, Assistant Golf Professional, Golf
Maintenance Worker, Parks Maintenance Worker, and Water Meter Service Worker).
The number of these part-time positions with health insurance benefits has been
reduced as employees in these positions accept other positions or leave employment
with the City of Dubuque. As of March 17, 2026, there are no part-time positions with
health insurance benefits that remains.
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FY 2027 Budget & Fiscal Policy Guidelines
Page 8
L. BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES
I:ei111972111111111►1:11
The provision of City services in the most economical and effective manner requires a
balance between capital (with emphasis upon replacement of equipment and capital
projects involving maintenance and reconstruction) and operating expenditures. This
balance should be reflected in the budget each year.
M. USER CHARGES
DISCUSSiUN
User charges or fees represent a significant portion of the income generated to support
the operating budget. It is the policy that user charges or fees be established when
possible so those who benefit from a service or activity also help pay for it. Municipal
utility funds have been established for certain activities, which are intended to be self-
supporting Enterprise Funds. Examples of utility funds operating as Enterprise Funds
include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection
Fund, and Parking Fund. In other cases, a user charge is established after the City
Council determines the extent to which an activity must be self-supporting. Examples of
this arrangement are fees for swimming, golf, recreation programs, and certain
inspection programs such as rental inspections and building permits.
The Stormwater User Fund is fully funded by stormwater use fees. The General Fund
will continue to provide funding for the stormwater fee subsidies which provide a 50%
subsidy for the stormwater fee charged to property tax exempt properties and low -to -
moderate income residents and a 75% subsidy for residential farms. The General Fund
will also continue to provide funding for the refuse, water, and sanitary sewer fee
subsidies which provide a 50% subsidy for the fees charged to low -to -moderate income
residents.
UUiULUNE
User fees and charges should be established where possible so that those who utilize
or directly benefit from a service, activity or facility also help pay for it.
User fees and charges for each utility enterprise fund (Water User Fund, Sewer User
Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set
at a level that fully supports the total direct and indirect cost of the activity, including the
cost of annual depreciation of capital assets, the administrative overhead to support the
system and financing for future capital improvement projects.
Page 250 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 9
Activity
FY 2024 Actual
--Self-Supporting
FY 2025 Actual
FY 2026 Adopted
FY 2027 Rec'd
Adult Athletics
77.2%
84.3%
61.7%
59.0%
McAleece Concessions
114.5%
116.6%
115.3%
117.0%
Youth Sports
17.4%
16.8%
12.2%
16.3%
Therapeutic & After School
56.2%
12.8%
17.6%
21.1 %
Recreation Classes
100.2%
64.6%
66.2%
39.0%
Swimming
41.6%
44.1 %
40.0%
39.3%
Golf
107.9%
113.0%
94.5%
106.6%
Port of Dubuque Marina
75.5%
85.6%
81.2%
85.1 %
Park Division
17.5%
13.3%
17.2%
15.1 %
Library
1.2%
1.2%
1.1 %
1.0%
Airport
106.7%
88.2%
97.6%
97.6%
Building Inspections
106.7%
120.7%
96.5%
96.0%
Planning Services
62.7%
70.7%
45.2%
71.5%
Health Food/Environmental
Inspections
37.5%
48.8%
38.3%
41.8%
Animal Control
58.5%
57.8%
51.7%
51.9%
Housing - General Inspection
95.6%
1 143.7%
1 107.6%
1 90.70/(
Federal Building Maintenance
62.2%
83.2%
86.2%
N. ADMINISTRATIVE OVERHEAD RECHARGES
DISCUSSION
While the Enterprise Funds have contributed to administrative overhead, the majority
has been provided by the General Fund. This is not reasonable and unduly impacts
property taxes, which causes a subsidy to the Enterprise Funds. Prior to FY 2013, the
administrative overhead was charged by computing the operating expense budget for
each enterprise fund and dividing the result by the total City-wide operating expense
budget which resulted in the following percentages of administrative overhead charged
to each enterprise fund: Water 5.32%; Sanitary Sewer 4.84%; Stormwater 0.55%; Solid
Waste 2.83%; Parking 1.71 %; and Landfill 2.71 %. The adopted Fiscal Year 2013
budget changed the administrative overhead to be more evenly split between the
general fund and enterprise funds and is phased in over many years.
The Fiscal Year 2018 administrative overhead formula was recommended modified.
The modification removed Neighborhood Development, Economic Development and
Workforce Development from all recharges to utility funds. In addition, the Landfill
calculation is modified to remove Geographic Information Systems and Planning
Services. The Fiscal Year 2027 administrative overhead formula is recommended to be
modified to include the Landfill in Communication Department recharges.
In Fiscal Year 2027, the general fund is recommended to support $2,715,875 in
administrative overhead using the recharge method adopted in Fiscal Year 2013 and
revised in Fiscal Year 2018.
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GUIDELINE
Beginning in FY 2013, additional overhead recharges to the utility funds is being phased
in over several years. Engineering administrative and project management expenses
that are not recharged to capital projects will be split evenly between the Water, Sewer,
Stormwater and General Funds. Finance accounting expenses and all other
administrative departments such as Planning, City Clerk, Legal Services and City
Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse
Collection and General Funds, with overhead costs being shared by the Landfill and
Parking. This will be fully implemented over time.
Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development
and Workforce Development expenses will not be recharged to utility funds. In addition,
the Landfill will not be recharged GIS and Planning expenses. In Fiscal Year 2027, the
Communications Department is also recharged to the Landfill.
When the overhead recharges are fully implemented, the split of the cost of
administrative overhead excluding Engineering will be as follows:
Administrative Overhead Split
(Not including Engineering)
■ Water
■ Sewer
■ Stormwater
■ Refuse
■ Parking
■ Landfill
■ General Fund
Engineering Administration &
Project Management
26%
25%
HIMM
■ General
Fund
■ Water
Sewer
■ Stormwater
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The implementation percent of the administrative overhead recharges in Fiscal Year
2027 as compared to Fiscal Year 2026 is as follows:
100%
75%
50%
25%
Percent Implemented Administrative Overhead
100% 100% 100% 100% 97% 100%
FY27 FY26
Sanitary Sewer Stormwater Water
P9 Refuse Parking Landfill
O. OUTSIDE FUNDING
nISCUSSInN
The purpose of this guideline is to establish the policy that the City should aggressively
pursue outside funding to assist in financing its operating and capital budgets.
However, the long-term commitments required for such funding must be carefully
evaluated before any agreements are made. Commitments to assume an ongoing
increased level of service or level of funding once the outside funding ends must be
minimized.
GUIDELINE
To minimize the property tax burden, the City of Dubuque will make every effort to
obtain federal, state and private funding to assist in financing its operating and capital
budgets. However, commitments to guarantee a level of service or level of funding after
the outside funding ends shall be minimized. Also, any matching funds required for
capital grants will be identified.
P. GENERAL FUND OPERATING RESERVE (WORKING BALANCE)
DISCUSSION
An operating reserve or working balance is an amount of cash, which must be carried
into a fiscal year to pay operating costs until tax money, or other anticipated revenue
comes in. Without a working balance, there would not be sufficient cash in the fund to
meet its obligations and money would have to be borrowed. Working balances are not
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available for funding a budget; they are required for cash flow (i.e., to be able to pay
bills before taxes are collected).
Moody's Investor Service recommends a factor of 35 percent for "AX rated cities. In
January 2025, Moody's Investor Services affirmed the Aa2 credit rating on general
obligation bonds. Moody's credit analysis states, "the City of Dubuque's local economy
benefits from its role as a regional economic center, with solid resident income and full
value per capita. Financial operations are strong and will remain so despite declines in
fund balance over the next few years, as it expends funds from the pandemic. Long-
term liabilities and fixed cost ratios are moderate and will remain so despite future
borrowing needs." According to Moody's, the Aa2 issuer rating for the City of Dubuque's
bonds reflects the city's healthy economic base, which serves as a regional economic
center. Other rationale stated for the rating include full value per capita and adjusted
resident income are solid at around $109,000 and 98% respectively, though weaker
than Aa peers, in part because of a large student population, available fund balance
was strong at around 60% of revenue at the close of fiscal 2023 (year-end June 30),
and cash was stronger at 85% of revenue. The City's available fund balance will likely
remain well over 45%, despite some planned draws in fiscal 2024 and fiscal 2025 to
spend down federal funds from the pandemic. Despite the state adopting new property
tax restrictions, revenue raising flexibility remains strong because the City maintains
significant margin in its employee benefits fund and is not utilizing its emergency levy.
The long-term liabilities ratio will likely remain well under 300% inclusive of the current
issuances and future borrowing plans, and fixed -costs ratio will remain well below 20%.
In July 2023, Moody's Investor Service upgraded the City's outstanding general
obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment
Revenue bonds from A2 to 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.
In November of 2022, Moody's Investors Service ("Moodys") released a new rating
methodology for cities and counties. Two significant changes result from the new
methodology; cities are now assigned an issuer rating meant to convey the
creditworthiness of the issuer as a whole without regard to a specific borrowing, and
business -type enterprise funds are now being considered together with general fund
revenues and balances in the determination of financial performance.
Under the new methodology, there are two metrics that contribute to financial
performance. Available Fund Balance Ratio ("AFBR") _ (Available Fund Balance + Net
Current Assets/Revenue) and Liquidity Ratio ("LR") _ (Unrestricted Cash/Revenue). For
Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in
connection to its annual issuance of bonds. At that time, Moody's calculated the City's
AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations
were likely elevated due to unspent ARPA funds. The change in methodology will now
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consider revenues and net assets from business -type activities in these calculations. As
such, the City's general obligation rating will now be directly impacted by the financial
performance of enterprise funds. Establishing rates and charges adequate to provide
both debt service coverage and significant liquidity will be necessary to maintain the
City's ratings.
In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's
outstanding revenue bonds from 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.
Fiscal
Fund Reserve
Year
(As % of General
Fund revenues)
...
Calculation
Increase due to American Rescue Plan Act funds
received ($13.2 million), frozen positions and
FY 2021
40.72%
capital projects through Feb 2021.
Increase due to American Rescue Plan Act funds
received ($13.2 million), capital projects not
expended before the end of the FY, and vacant
FY 2022
49.16%
45.09%
positions.
Increase due to American Rescue Plan Act funds
not spent ($26.4 million), capital projects not
expended before the end of the FY, and vacant
FY 2023
55.82%
62.99 %
positions.
Decrease due to spend down of American Rescue
FY 2024
51.19%
62.41 %
Plan Act funds.
Decrease due to spend down of American Rescue
FY 2025
43.07%
58.14 %
Plan Act funds.
The City of Dubuque has historically adopted a general fund reserve policy as part of
the Fiscal and Budget Policy Guidelines which are adopted each year as part of the
budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve
Policy. Per the policy for the General Fund, the City will maintain a minimum fund
balance of at least 20 percent of the sum of (a) annual operating expenditures not
including interfund transfers in the General Fund less (b) the amounts levied in the Trust
and Agency fund and the Tort Liability Fund ("Net General Fund Operating Cost"). The
City may increase the minimum fund balance by a portion of any operating surplus
above the carryover balance of $200,000 that remains in the General Fund at the close
of each fiscal year. The City continued to add to the General Fund minimum balance
when additional funds were available until 20 percent of Net General Fund Operating
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Cost was reached in Fiscal Year 2017. During Fiscal Year 2024, the General Fund
minimum balance was increased to 25 percent.
After all planned expenditures in FY 2026, the City of Dubuque will have a general fund
reserve of 34.37% of general fund revenues as a percent of general fund revenues
computed by the accrual basis or 49.01 % 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 $32,347,743. 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.
CI iinFI INF
The guideline of the City of Dubuque is to maintain a General Fund working balance or
operating reserve of 25% (27% to maintain a margin of error of 2%) in FY 2026 and
beyond. In Fiscal Year 2017, the City had projected reaching this consistent and
sustainable 20% reserve level in Fiscal Year 2023. In fact, the City met the 20%
reserve requirement in FY 2017, five years ahead of schedule and has sustained a
greater than 20% reserve.
General Fund Reserve Projections:
Fiscal Year
FY2021
Contribution
$500,000
Spendable..Is
General Fund Cash
Reserve
$31,089,468
Projected
Revenue
40.72
. Ige
Metho
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
$415,247
$38,147,743
40.53 %
52.33 %
FY2026
$1,823,234
$32,347,743
34.37 %
49.01 %
FY2027
$
$25,412,743
27.00 %
45.03 %
FY2028
$
$25,412,743
27.00 %
41.06 %
FY2029
$
$26,388,917
27.00 %1
37.08
FY2030
$
$25,412,743
27.00 %1
35.65
* Capital projects and large equipment purchases that are not completed in the
year budgeted will temporarily increase the amount of fund balance remaining at the
end of the fiscal year. After resources are allocated to the next fiscal year to complete
unfinished capital projects and equipment purchases, any amount of general fund
reserve balance over 27% creates resources for additional capital projects or
other mid -year expenses.
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Q. STATE LEGISLATIVE ANTICIPATION RESERVE FUND
DISCUSSION
The State Legislative Anticipation Reserve Fund is a new fund and is being
established in Fiscal Year 2027 using $4.1 million generated from the repayment
of internal loans to the City's General Fund from the Greater Downtown TIF
(GDTIF) Fund.
This reserve is being created in recognition of the significant property tax reform
proposals being considered during the current State legislative session. Because these
reforms could materially affect the City's future revenue structure, it is financially
prudent to maintain an additional reserve to help absorb any potential impacts.
Retaining this balance through the FY 2028 budget cycle ensures the City can respond
responsibly should legislative changes reduce or otherwise alter revenues.
The actual total repayment was $5.3 million with $974,917 used to fund non -recurring
General Fund improvement requests and to make a $675,554 internal loan to the
Refuse Collection enterprise fund.
If the City Council elects to use any portion of the State Legislative Anticipation Reserve
Fund before FY 2028, such use must be limited strictly to non -recurring expenses. This
preserves the integrity of the reserve by ensuring one-time funds are not used to
support ongoing operational costs, maintaining long-term fiscal sustainability.
UUIUtLIIVt
The guideline of the City of Dubuque is to maintain a State Legislative Anticipation
Reserve Fund through Fiscal Year 2028. The reserve balance is funded with one-time
revenue from the repayment of internal loans to the General Fund from the GDTIF Fund
in the amount of $4.1 million.
R. USE OF UNANTICIPATED, UNOBLIGATED, NONRECURRING
INCOME
DISCUSSION
Occasionally, the City receives income that was not anticipated and was not budgeted.
Often, this money is non -recurring and reflects a one-time occurrence which generated
the unanticipated increase in income.
Non -recurring income generally will not be spent on recurring expenses. This would
result in a funding shortfall in the following budget year before even starting budget
preparation. However, eligible non -recurring expenditures would include capital
improvements and equipment purchases.
GUIDELINE
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Nonrecurring unobligated income shall generally only be spent for nonrecurring
expenses. Capital improvement projects and major equipment purchases tend to be
nonrecurring expenditures.
USE OF "UNENCUMBERED FUND BALANCES"
DISCUSSION
Historically, 100% of a budget is not spent by the end of the fiscal year and a small
unencumbered balance remains on June 30th. In addition, income sometimes exceeds
revenue estimates or there are cost savings resulting in some unanticipated balances at
the end of the year. These amounts of unobligated, year-end balances are "carried
over" into the new fiscal year to help finance it.
The FY 2026 General Fund budget, which went into effect July 1, 2025, anticipated a
"carryover balance" of $200,000 or approximately 0.7 percent of the City tax asking. For
multi -year budget planning purposes, these guidelines assume a carryover balance of
$200,000 in FY 2027 through FY 2031.
GUIUELINE
Carryover General Fund balance shall generally be used to help finance the next fiscal
year budget and reduce the demand for increased taxation. The available carryover
General Fund balance shall be anticipated not to exceed $200,000 for FY 2027 and
beyond through the budget planning period. Any amount over that shall usually be
programmed in the next budget cycle as part of the capital improvement budgeting
process.
T. PROPERTY TAX DISCUSSION
I. ASSUMPTIONS - RESOURCES
1. Local, Federal and State Resources
a. Cash Balance. Unencumbered funds or cash balances of $200,000 will be available
in FY 2027 and each succeeding year to support the operating budget.
b. Interest Revenue. Interest revenue decreased 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.
b. Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the
General Fund for property tax relief in FY 2027. 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, and then increase at
an annual rate of 2.00% percent per year beginning in FY 2028. The following chart
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shows the past four years of actual sales tax funds and projected FY 2027 for the
General Fund:
Sales Tax
Funds IF
FY 2023
FY -
0IS
FY 2025 JW
FY 2026 ji,
FY 2027 A
PY 04
$ 475,037
$ 451,920
I $
574,416
I $ 635,746
I $
654,818
Quarter 1
$ 1,177,196
$ 1,545,777
$
1,592,834
$ 1,610,911
$
1,659,238
Quarter 2
$ 1,522,885
$ 1,596,421
$
1,605,397
$ 1,142,148
$
1,176,413
Quarter 3
$ 1,443,097
$ 1,524,508
$
1,490,640
$ 1,624,797
$
1,673,541
Quarter 4
$ 1,110,593
$ 979,209
$
969,694
$ 1,061,815
$
1,093,669
Reconciliation
$ 371,388
$ —
$
—
$ —
$
—
Total
$ 6,100,196
$ 6,097,835
$
6,232,981
$ 6,075,417
$
6,257,679
Change
1 -4.00%
-0.04%
+2.22%
-2.53%
+3.0
c. Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 5.00%
($167,843) over FY 2026 re -estimated receipts of $3,356,856, and then increase at an
annual rate of 3.00% per year.
d. FTA Revenue. Federal Transportation Administration (FTA) transit operating
assistance decreased from $598,167 in FY 2026 to $443,500 in FY 2027. The FY 2027
budget is based on the revised FY 2026 budget received from the FTA. Federal
operating assistance is based on a comparison of larger cities. Previously the allocation
was based on population and population density.
e. Ambulance Revenue. 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.
Ambulance Fees increased from $1,756,870 in FY 2026 to $2,778,351 in FY 2027
based on calculated projections using historical averages and Council approved
advanced life support and basic life support service fees to match the third -party cost
report. The FY 2025 actual was $2,026,670.
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.
f. Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth
per year over budgeted FY 2026.
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g. Building Fee Revenue. Building fees (Building Permits, Electrical Permits,
Mechanical Permits and Plumbing Permits) are anticipated to increase $56,927 from
$1,099,857 in FY 2026 to $1,156,784 in FY 2027.
h. DRA Revenue.
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.
The following is a ten-year history of DRA lease payments to the City of Dubuque:
1�iscall Year
FY 2027 Projected
DRA Lease Payments
$7,079,186
$ Change_JJV_ch_ang_�
$127,716
1.8%
FY 2026 Revised
$6,951,470
-$261,892
-3.6%
FY 2026 Budget
$7,213,362
$349,629
5.1 %
FY 2025 Actual
$6,863,733
$589,707
9.4%
FY 2024 Actual
$6,274,026
-$917,449
-12.8%
FY 2023 Actual
$7,191,475
$583,944
8.8%
FY 2022 Actual
$6,607,531
$2,645,535
66.8%
FY 2021 Actual
$3,961,996
-$1,187,192
-23.1 %
FY 2020 Actual
$5,149,188
$293,177
6.0%
FY 2019 Actual
$4,856,011
$18,879
0.4%
FY 2018 Actual
$4,837,132
-$195,083
-3.9%
FY 2017 Actual
$5,032,215
-$155,297
-3.0%
FY 2016 Actual
$5,187,512
-$158,104
-3.0%
The Diamond Jo payment related to the revised parking agreement increased from
$687,003 in FY 2026 to $731,657 in 2027 based on estimated Consumer Price Index
adjustment.
i. DRA Gaming.
The split of gaming revenues from taxes and the DRA lease (not distributions) in FY
2027 remains at a split of 100% operating and 0% capital. When practical in future
years, additional revenues will be moved to the capital budget from the operating
budget.
The following shows the annual split of gaming taxes and rents between operating and
capital budgets from FY2022— FY2027:
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FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Split of Gaming Tax + Revenue Between Operating & Capital Budgets
0%
0%
0%
0%
0%
0%
—% 10% 20% 30% 40% 50% 60% 70°ic, 80% 90% 100% 110%
Operatiny ;apuai
j. Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2027) and the
Diamond Jo parking privileges ($731,657 in FY 2027) have not been included in the
split with gaming revenues. This revenue is allocated to the operating budget.
2. Property Taxes
k. Residential Rollback. The residential rollback factor will decrease from 47.4316% in
2026 to 44.5345% or a 6.11 % decrease in FY 2027. The rollback has been estimated to
remain the same from Fiscal Years 2028 through 2031.
The percent of growth from revaluation is to be the same for agricultural and residential
property; therefore, if one of these classes has less than 3% growth for a year, the other
class is limited to the same percent of growth. A balance is maintained between the two
classes by ensuring that they increase from revaluation at the same rate. In FY 2027,
residential property had more growth than agricultural property which caused the
rollback factor to decrease.
Residential property was revalued by the City Assessor by neighborhood for the
January 1, 2025 property assessments, which impacts the Fiscal Year 2027 budget.
The average residential property value increased 8.50%. This revaluation of residential
property resulted in the taxable value for the average homeowner calculation to
increase from $93,207 to $94,952 (+1.87%).
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
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value in FY 2026 and $94,952 taxable value in 2027) results in more taxes to be paid
per $1,000 of assessed value. In an effort to keep property taxes low to the average
homeowner, the City calculates the property tax impact to the average residential
property based on the residential rollback factor and property tax rate. In a year that the
residential rollback factor increases, the City recommends a lower property tax rate than
what would be recommended had the rollback factor remained the same.
The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to
44.5345 percent in Fiscal Year 2027. The rollback percent had steadily decreased since
FY 1987, which has resulted in less taxable value and an increase in the City's tax rate.
However, that trend began reversing in FY 2009 when the rollback reached a low of
44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2026, the City's
tax rate would have been $6.18 per $1,000 of assessed value instead of $10.06 in FY
2026.
I. State Equalization Order/Property Tax Reform. There was not an equalization
order for commercial, industrial or multi -residential property in Fiscal Year 2027. The
Iowa Department of Revenue is responsible for "equalizing" assessments every two
years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide
basis.
Commercial property was revalued by the City Assessor for the January 1, 2025
property assessments, which impacts the Fiscal Year 2027 budget. The average
commercial and industrial property values increased 16%. This revaluation of
commercial property resulted in the taxable value for the average commercial
calculation to increase from $540,594 to $624,927 (+16%). This revaluation of industrial
property resulted in the taxable value for the average industrial calculation to increase
from $632,952 to $731,693 (+16%).
Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed
value; however due to legislative changes in FY 2013, a 95% rollback factor was
applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond.
The State of Iowa backfilled the loss in property tax revenue from the rollback 100% in
FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018
and beyond. The FY 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).
Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill
provides that beginning with the FY 2023 payment, the General Fund standing
appropriation for commercial and industrial property tax replacement for cities and
counties will be phased out in four or seven years, depending on how the tax base of
the city or county grew relative to the rest of the state since FY 2014. Cities and
counties where the tax base grew at a faster rate than the statewide average from FY
2014 through FY 2021 will have the backfill phased out over a four-year period from FY
2023 to FY 2026, while those that grew at a rate less than the statewide average will
have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The
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City of Dubuque's tax base grew at a rate less than the statewide average and will have
a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in
FY 2023, the backfill will be eliminated over a eight year period.
The projected reduction of State backfill revenue to only the general fund is as follows:
2027
LIMOLO
-$97,981
2028
-$97,981
2029
-$97,981
2030
-$97,981
Total
-$391,924
Business Property Tax Credit Law Changes and Implementation of Two -Tier
Assessment Limitations
From FY 2015 through FY 2023, commercial, industrial and railroad properties were
eligible for a Business Property Tax Credit. The Business Property Tax Credit was
deducted from the property taxes owed and the credit was funded by the State of Iowa.
The average commercial and industrial properties ($432,475 Commercial / $599,500
Industrial) received a Business Property Tax Credit from the State of Iowa for the City
share of their property taxes of $148 in FY 2015, $693 in FY 2016, $982 in FY 2017,
$959 in FY 2018, $843 in FY 2019, $861 in FY 2020, $779 in FY 2021, $780 in FY
2022, and $722 in FY 2023.
House File 2552, Division 11 passed in the 2022 legislative session and signed by the
Governor on May 2, 2022 repeals the Business Property Tax Credit (BPTC). In lieu of
the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad
properties will receive a property assessment limitation on the first $150,000 of value of
the property unit equal to the assessment limitation for residential property. The value of
the property unit that exceeds $150,000 receives the same ninety percent assessment
limitation it has in the past.
The $125 million fund will continue to be appropriated each year for reimbursements to
counties. County auditors will file a claim for the first tier of the assessment limitations in
September. Assessors will continue to provide the unit configuration for auditors as
these definitions remained the same. Taxpayers are not required to file an application to
receive the first $150,000 of assessed value at the residential assessment limitation
rate.
If the total for all claims is more than the appropriated amounts, the claims will be
prorated and the Iowa Department of Revenue will notify the county auditors of prorated
percentage by September 301h. 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.
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The projected backfill for Dubuque for the first -tier assessment limitation in FY27
is estimated to be $170,000.
m. Multi -Residential Property Class/Eliminated State Shared Revenue.
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi -residential, which requires a rollback, or
assessment limitations order, on multi -residential property which will eventually equal
the residential rollback. Multi -residential property includes apartments with 3 or more
units. Rental properties of 2 units were already classified as residential property.
The State of Iowa did not backfill property tax loss from the rollback on multi -residential
property. The rollback occurred as follows -
Fiscal Year
Rollback
Revenue
FY 2017 86.25% $331,239
FY 2018 82.50% $472,127
FY 2019 78.75% $576,503
FY 2020 75.00% $691,640
FY 2021 71.25% $952,888
FY 2022 67.50% $752,366
FY 2023 63.75% $662,821
FY 2024 54.65% $1,186,077
Total $5 625 661
This annual loss in tax revenue of $1,186,077 from multi -residential property was
not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the
City lost $5,625,661 in total, meaning landlords paid that much less in property taxes.
The state did not require landlords to charge lower rents or to make additional
investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class, so the City continues to lose these
revenues.
State Shared Revenue Eliminations
In addition, the State of Iowa eliminated the:
a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000)
b. Personal Property Tax Replacement in FY 2004 (-$350,000)
c. Municipal Assistance in FY 2004 (-$300,000)
d. Liquor Sales Revenue in FY 2004 (-$250,000)
e. Bank Franchise Tax in FY 2005 (-$145,000)
f. Alcohol License Revenue in FY 2023 (-$85,000)
Page 264 of 304
This annual loss in tax revenue of $1,186,077 from multi -residential property was
not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the
City lost $5,625,661 in total, meaning landlords paid that much less in property taxes.
The state did not require landlords to charge lower rents or to make additional
investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class, so the City continues to lose these
revenues.
State Shared Revenue Eliminations
In addition, the State of Iowa eliminated the:
a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000)
b. Personal Property Tax Replacement in FY 2004 (-$350,000)
c. Municipal Assistance in FY 2004 (-$300,000)
d. Liquor Sales Revenue in FY 2004 (-$250,000)
e. Bank Franchise Tax in FY 2005 (-$145,000)
f. Alcohol License Revenue in FY 2023 (-$85,000)
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The combination of the decreased residential rollback, State funding cuts and increased
expenses has forced the City's tax rate to increase since 1987 when the residents
passed a referendum to establish a one percent local option sales tax with 50% of the
revenue going to property tax relief.
n. Taxable Value. FY 2027 will reflect the following impacts of taxable values of various
property types:
Property.- Percent
Residential Includes Multi -Residential
Changein Taxable Value
+3.51 %
Commercial
+15.63 %
Industrial
+8.22 %
Overall
+5.89 %
*Overall taxable value increased 5.89% percent after deducting Tax Increment
Financing values
Assessed valuations were increased 2 percent per year beyond FY 2027.
o. Greater Downtown Tax Increment Financing
• 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. $675,554 will be used as an internal loan to the Refuse
Collection enterprise 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.
• 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.
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p. Riverfront Property Lease Revenue. 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.
3. Fees, Tax Rates & Services
q. Franchise Fees. 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%. The franchise fee revenues are projected to increase at an
annual rate of 4 percent per year from FY 2028 through FY 2031.
The City provides franchise fee rebates to gas and electric customers who are exempt
from State of Iowa sales tax. Franchise fee rebates are provided at the same exemption
percent as the State of Iowa sales tax exemption indicated on the individual gas and or
electric bill. To receive a franchise fee rebate, a rebate request form must be completed
by the customer, the gas and/or electric bill must be attached, and requests for rebates
for franchise fees must be submitted during the fiscal year in which the franchise fees
were paid except for June.
The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal
maximum, on June 1, 2015.
r. Property Tax Rate. For purposes of budget projections only, it is assumed that City
property taxes will continue to increase at a rate necessary to meet additional
requirements over resources beyond FY 2027.
s. Police & Fire Protection. FY 2027 reflects the fifteenth year that payment in lieu of
taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection.
In FY 2027, the Sanitary Sewer fund is charged 0.43% of building value and the Water
fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire
Protection. This revenue is reflected in the General Fund and is used for general
property tax relief.
II. ASSUMPTIONS — REQUIREMENTS
a. Pension Systems.
• The Municipal Fire and Police Retirement System of Iowa (MFPRSI) Board of
Trustees City contribution for Police and Fire retirement 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 savings of $151,840).
• The Iowa Public Employee Retirement System (IPERS) City contribution is
unchanged from the FY 2026 contribution rate of 9.44% (no general fund
impact). The IPERS employee contribution is unchanged from the FY 2026
contribution rate of 6.29% (which does not affect the City's portion of the budget).
The IPERS rate is anticipated to increase 1 percent each succeeding year.
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b. Collective Bargaining and Non -Represented. 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 $2,675,126 to the General Fund.
c. 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 $421,050 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 were increased 5.37%; FY 2030 were increased 5.38%; and FY 2031
were increased 5.38%. Effective January 1, 2027, employee contributions will increase.
d. Five -Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible
retirees with at least twenty years of continuous service in a full-time position or
employees who retired as a result of a disability and are eligible for pension payments
from the pension system can receive payment of their sick leave balance with a
maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick
leave payout expense budget in the General Fund in FY 2026 was $288,742 as
compared to FY 2027 of $228,836, based on qualifying employees officially giving
notice of retirement.
e. 50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap
can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick
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leave payout expense budget in the General Fund in FY 2026 was $128,496 as
compared to FY 2027 of $141,764, based on FY 2026 year-to-date expense.
f. Parental Leave. Effective March 8, 2019, employees may use Parental leave to take
paid time away from work for the birth or the adoption of a child under 18 years old.
Eligible employees receive their regular base pay (plus longevity) and benefits for
twelve weeks following the date of birth, adoption event or foster -to -adopt placement. If
both parents are eligible employees, each receive the leave benefit. There is no
parental leave expense budgeted in the General Fund based on departments covering
parental leave with existing employees and not incurring additional cost for temporary
help.
f. Supplies & Services. General operating supplies and services are estimated to
increase 2% over actual in FY 2025. A 2% increase is estimated in succeeding years.
g. Electricity. Electrical energy expense is estimated to increase 4% over FY 2025
actual expense, then 2% per year beyond.
h. Natural Gas. Natural gas expense is based on FY 2025 actual then 2% per year
beyond.
i. Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will
continue at 50% of actual hotel/motel tax receipts.
j. Equipment & Machinery. Equipment costs for FY 2027 are estimated to decrease
14.60% under FY 2026 budget based on equipment replacement schedules, then
remain constant per year beyond.
k. Debt Service. Debt service is estimated based on the tax -supported, unabated
General Obligation bond sale for fire truck and franchise fee litigation settlement.
I. Unemployment. Unemployment expense in the General Fund decreased from
$23,824 in FY 2026 to $27,007 in FY 2027 based on estimated premium for FY2026.
m. Motor Vehicle Fuel. Motor vehicle fuel is estimated to decrease 30% under the FY
2026 budget based on the City fuel island fully operational in FY 2027and no longer
purchasing from retail gas stations, then increase 2.0% per year beyond.
n. Motor Vehicle Maintenance. Motor vehicle maintenance is based on the FY 2026
budget, then increase 2.0% per year and beyond.
o. Public Transit. 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); a decrease in Federal Transportation Administration
Capital ($344,329), an increase in employee expense ($120,888); decrease in supplies
and services ($114,293); a reduction in equipment replacements ($99,615), a decrease
in passenger fare revenue ($2,579).
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The following is a ten-year history of the Transit subsidy:
Fiscal Year
2027 Projection
Amount
$2,243,174
% Change
16.39 %
2026 Budget
$1,927,336
1.74 %
2025 Actual
$1,961,488
26.70 %
2024 Actual
$1,548,127
1.52 %
2023 Actual
$1,571,981
(1.83)%
2022 Actual
$1,601,290
2.09 %
2021 Actual
$1,635,441
4.94 %
2020 Actual
$1,558,460
0.82 %
2019 Actual
$1,571,307
(0.10)%
2018 Actual
$1,572,825
34.10 %
2017 Actual
$1,172,885
24.41 %
2016 Actual
$942,752
13.00 %
q. Shipping & Postage. Postage rates for FY 2027 are estimated to increase 5% over
FY 2025 actual expense and proposed cost increases by United States Postal Service.
A 3.0 percent increase is estimated in succeeding years.
r. Insurance. Insurance costs are estimated to change as follows:
• Workers Compensation is decreasing 44.18% based on rate change.
• General Liability is decreasing 3.06% based on rate change.
• Damage claims is decreasing 6.86% based on a three year average.
• Property insurance is increasing based on FY 2026 actual over 2%.
s. Housing. The Housing Choice Voucher subsidy payment from the General Fund is
estimated to increase $130,684 in FY 2027. The budgeted administrative cost of the
Housing Choice Voucher Program increased from $1,129,462 in FY 2026 to $1,187,395
in FY 2027. Administrative revenue of the Housing Choice Voucher Program decreased
from $912,012 in FY 2026 to $825,384 in FY 2027. The resulting Housing Choice
Voucher Program deficit increased from $217,450 in FY 2026 to $362,011 in FY 2027.
This deficit is funded by property taxes.
t. Communications Department. In Fiscal Year 2026, Cable Utility Franchise Tax
revenue paid to the City by Mediacom and ImOn, as required by the state franchise fee
agreement, was no longer be enough to support Communications Department
employee expense. A vacant part-time (0.75 FTE) Communications Assistant position
was recommended to be eliminated. All remaining Cable Utility Franchise Tax
supported positions were recommended to be moved to the General Fund. This
General Fund expense will be partially offset by administrative overhead recharges to
the enterprise funds. The Cable Utility Franchise Tax revenue will support
Communications Department supplies and services only going forward.
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Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and
Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is
expended, the City will be responsible for all City Media Service equipment replacement
costs. Other jurisdictions will need to plan accordingly.
u. Greater Dubuque Development Corporation. Greater Dubuque Development
Corporation support of $836,135 is budgeted to be paid mostly from Dubuque Industrial
Center Land Sales in FY 2027, with $26,500 for Targeted Neighborhood Reinvestment
strategy paid from the Greater Downtown TIF. In FY 2028 and beyond Greater
Dubuque Development Corporation will be paid from the Greater Downtown TIF and
Dubuque Industrial Center West land sales.
V.
PROPERTY TAX IMPAC
The recommended Fiscal Year 2027 property tax rate increased 1.38% and will have
the following impact:
Property
Properties
Properties
Property Tax
Property Tax
Change
Change
Residential:
Payment
$888.20
Payment
$915.88
+$26.68
+3.091/.
Avg. value - $213,211
Commercial:
$716.01
$679.03
-$36.98
-5.2%
$150,000 value & below
433
381
Commercial:
$2,074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
232
225
Commercial:
$3,433.21
$3,423.53
-$9.38
-0.3%
$300,001-$450,000
147
167
Commercial:
$4,253.76
$5,023.83
+$770.07
+18.1 %
Avg. Value = $624,927
588
636
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Page 29
Property
Properties..erties
Property Tax
Property
Industrial:
Payment
$716.01
Payment
$679.03
-$36.98
-5.2 %
$150,000 value & below
8
8
Industrial:
$2,074.61
$2,051.29
-$23.32
-1.1 %
$150,001-$300,000 value
11
9
Industrial:
$3,433.21
$3,423.53
-$0.28
-0.3 %
$300,001-$450,000
4
3
Industrial:
$5,090.27
$6,000.56
$910.29
+17.9 %
Avg. Value = $624,927
58
58
Historical Impact on Tax Askings and Average Residential Property Tax Rates
The following is a historical City tax rate comparison. The average percent change in
tax rate from 1987-2027 is-0.83%. The average annual change over the last five years
is +0.56%.
The following pages show historical and projected property tax impacts.
Page 271 of 304
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Page 30
FY 1987
FY 1988
FY 1989
FY 1990
FY 1991
FY 1992
FY 1993
FY 1994
FY 1995
FY 1996
FY 1997
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024
FY2025
FY2026
FY2027
Historical Impact on Tax Askings & Average Residential Property Tax Rates
% Change in Tax Rate City Tax Rate
$— $2.00 $4.00 $6.00 $8.00 $10.00 S12.00 S14.00 S16.00
(17.50)% (15.00)% (12.50)% (10.00)% (7.50)% (5.00)% (2.50)% —% 2.50% 5.00%
Page 272 of 304
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Page 31
Historical City tax rates and % change in tax rate:
Fiscal Year
FY 1987
City Tax Rate
14.5819
-
% . in Tax Rate
FY 1988
13.9500
-4.33%
FY 1989
11.8007
-15.41 %
FY 1990
11.6891
-0.95%
FY 1991
12.2660
+4.94%
FY 1992
12.7741
+4.14%
FY 1993
12.4989
-2.15%
FY 1994
12.6059
+0.86%
FY 1995
11.7821
-6.54%
FY 1996
11.7821
0.00%
FY 1997
11.3815
-3.40%
FY 1998
11.4011
+0.17%
FY 1999
11.0734
-2.87%
FY 2000
10.7160
-3.23%
FY 2001
11.0671
+3.28%
FY 2002
10.7608
-2.77%
FY 2003
10.2120
-5.10%
FY 2004
10.2730
+0.60%
FY 2005
10.0720
-1.96%
FY 2006
9.6991
-3.70%
FY 2007
9.9803
+2.90%
FY 2008
10.3169
+3.37%
FY 2009
9.9690
-3.37%
FY 2010
9.8577
-1.12%
FY 2011
10.0274
+1.72%
FY 2012
10.4511
+4.23%
FY 2013
10.7848
+3.19%
FY 2014
11.0259
+2.24%
FY 2015
11.0259
0.00%
FY 2016
11.0259
0.00%
FY 2017
11.1674
+1.28%
FY 2018
10.8922
-2.46%
FY 2019
10.5884
-2.79%
FY 2020
10.3314
-2.43%
FY 2021
10.1440
-1.81 %
FY 2022
9.8890
-2.51 %
FY 2023
9.7169
-1.74%
FY 2024
9.9014
+1.90%
FY 2025
9.9264
+0.25%
FY 2026
10.0637
+1.38%
Page 273 of 304
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Page 32
Fiscal Year City Tax Rate % Change in Tax Rat
FY 2027
10.1648 +1.00%
1987 - 2027 Average Change -0.83%
2023-2027 Average Change +0.56%
From Fiscal Year 1987 through Fiscal Year 2027, the average annual change in the
property tax rate is a decrease of 0.83%. Over the last five years, the average annual
change in the property tax rate is a decrease of 0.56%.
Projected Impacts on Tax Askings and Average Residential Property Tax Rates
Project Impacts on Tax Askings & Average Residential Property Tax Rates
4.00% $12.00
3.00%
2.00%
1.00%
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
4�. % Change in Tax Rate City Tax Rate
Projected City tax rates and % change in tax rate*:
Fiscal Year
FY 2027
City Tax Rate
10.1648
% Change in Tax Rate
1.00%
FY 2028
10.3519
1.84%
FY 2029
10.5440
1.86%
FY 2030
10.7802
2.24%
FY 2031
11.0832
2.81 %
$9.00
$6.00
$3.00
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Page 33
IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE
FY 1989 "City" Property Tax
•
$453.99
.-
-11.40%
.-.
.-
FY 1990
"City" Property Tax
$449.94
-0.89%
-$4.04
FY 1991*
"City" Property Tax*
$466.92
+3.77%
$16.98
FY 1992
"City" Property Tax
$483.63
+3.58%
$16.71
FY 1993*
"City" Property Tax*
$508.73
+5.19%
$25.10
FY 1994
"City" Property Tax
$510.40
+0.33%
$1.51
FY 1995*
"City" Property Tax*
$522.65
+2.40%
$12.41
FY 1996
"City" Property Tax
$518.10
-0.87%
-$4.54
FY 1997*
"City" Property Tax*
$515.91
-0.42%
-$2.19
FY 1998
"City" Property Tax
$512.25
-0.71 %
-$3.66
FY 1999
"City" Property Tax*
$512.25
0.00%
$0.00
FY 2000
"City" Property Tax
$511.38
-0.17%
-$0.87
FY 2001
"City" Property Tax
$511.38
0.00%
$0.00
FY 2002
"City" Property Tax
$511.38
0.00%
$0.00
FY 2003
"City" Property Tax*
$485.79
-5.00%
-$25.58
FY 2004
"City" Property Tax
$485.79
0.00%
$0.00
With Homestead Adj.
$493.26
+1.54%
$7.46
FY 2005
"City" Property Tax*
$485.93
+0.03%
$0.14
With Homestead Ad'.*
$495.21
+0.40%
$1.95
FY 2006
"City" Property Tax 1
$494.27
+1.72%
$8.34
With Homestead Adj. (1)
$504.62
+1.90%
$9.41
FY 2007
"City" Property Tax* 2
$485.79
-1.72%
-$8.48
With Homestead Adj.*
$496.93
-1.52%
-$7.69
FY 2008
"City" Property Tax
$496.93
0.00%
$0.00
With Homestead Adj.
$510.45
+2.72%
$13.52
FY 2009
"City" Property Tax
$524.53
+2.76%
$14.08
With Homestead Adj.
$538.07
+5.41 %
$27.62
FY 2010
"City" Property Tax
$538.07
0.00%
$0.00
With Homestead Adj.
$550.97
+2.40%
$12.90
FY 2011
"City" Property Tax
$564.59
+2.47%
$13.62
With Homestead Adj. 3
$582.10
+5.65%
$31.13
FY 2012
"City" Property Tax
$611.19
+5.00%
$29.09
With Homestead Adj. (3)
$629.78
+8.19%
$47.68
FY 2013
"City" Property Tax
$661.25
+5.00%
$31.47
With Homestead Adj. (3)
$672.76
+6.82%
$42.98
FY 2014
"City" Property Tax
$705.71
+4.90%
$32.95
FY 2015
"City" Property Tax
$728.48
+3.23%
$22.77
FY 2016
"City" Property Tax
$747.65
+2.63%
+$19.17
FY 2017
"City" Property Tax
$755.70
+1.08%
$8.05
FY 2018
"City" Property Tax
$755.70
0.00%
$0.00
FY 2019
"City" Property Tax
$770.17
+1.91%1
$14.47
Page 275 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 34
- Historicaa
FY 2020 "City" Property Tax
City Tax
Calculation
$770.17
Percent
ChangeActual
0.00%
ChangeActual
HTC 00%
Funded
Dollar
Change
$0.00
FY 2021
"City" Property Tax
$769.08
-0.14%
-$1.09
FY 2022
"City" Property Tax
$769.08
0.00%
$0.00
FY 2023
"City" Property Tax
$791.82
+2.96%
+$22.74
FY 2024
"City" Property Tax
$815.07
+2.94%
+$23.25
FY 2025
"City" Property Tax
$855.82
+5.00%
+$40.75
FY 2026
1 "City" Property Tax
$889.20
+3.90%
+$33.38
Average FY1989-FY2026 with Homestead Adj. +1.52%
Average FY2022-FY2026 with Homestead Adj. +2.96%
Average FY1989-FY2026 without Homestead Adj.
+1.04%
+$9.92
+$24.02
+$7.32
The average annual dollar change in residential property tax from 1989-2026 is an
increase of $9.92. The average annual dollar change over the last five years is an
increase of $24.02.
Projected impact on average residential property:
PROJECTI
CA
"City" Property Tax
CITY TAX PERCENT
•CHANGE
$915.87
+3.00%
DOLLAR
+$26.67
FY 2027
FY 2028
"City" Property Tax
$932.73
+1.84%
+$16.86
FY 2029
"City" Property Tax
$950.03
+1.85%
+$17.30
FY 2030
"City" Property Tax
$971.32
+1.85%
+$21.29
FY 2031
"City" Property Tax 1
$998.62
+2.32%
+$23.59
* Denotes year of State -issued equalization orders.
^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%.
(1) The FY 2006 property tax calculation considers the 6.2% valuation increase for the average
residential homeowner as determined by the reappraisal.
(2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006.
(3) The City adopted a budget in FY 2011 and 2012 that provided no increase to the average
homeowner. The State of Iowa underfunded the Homestead Property Tax Credit in both years
costing the average homeowner an additional $18.59 in FY 2012 and $11.51 in FY 2013. This
provided no additional revenues to the City, as this money would have come to the City from the
State if they appropriated the proper amount of funds.
Page 276 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 35
Homestead Property Tax Credit
The Homestead Property Tax Credit was established by the state legislature to reduce the
amount of property tax collected. The intent of the credit was to be a form of tax relief and
provide an incentive for home ownership. The State Homestead Property Tax Credit works by
discounting the tax collected on the first $4,850 of a property's taxable value. This has no
impact on what the City receives from property tax collections, but provides tax relief for the
average homeowner.
Beginning FY 2004, the State of Iowa did not fully fund the State Homestead Property Tax
Credit resulting in the average homeowner paying the unfunded portion. Again, this has no
impact on what the City receives, however as a result has caused the average homeowner to
pay more taxes.
Historical Percent of Iowa Homestead Property Tax Credit Funded by the State of
Iowa
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
85%
81%
78%
77%
73%
72%
72%
64%
62%
7R%,
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
—% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percent Funded
Page 277 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 36
IMPACT ON COMMERCIAL PROPERTY - EXAMPLE
•- •.:j:41j1�;jwj6w1
-m
$2,106.42
1 An
-$384.19-15.43%
FY 1989
"City" Property Tax
FY 1990
"City" Property Tax
$2,086.50
-$19.92
-0.95%
FY 1991
"City" Property Tax
$2,189.48
+$102.98
+4.94%
FY 1992
"City" Property Tax
$2,280.18
+$90.70
+4.14%
FY 1993
"City" Property Tax
$2,231.05
-$49.13
-2.15%
FY 1994
"City" Property Tax
$2,250.15
+$19.10
+0.86%
FY 1995
"City" Property Tax
$2,439.60
+$189.45
+8.42%
FY 1996
"City" Property Tax
$2,439.60
$0.00
0.00%
FY 1997
"City" Property Tax
$2,659.36
+$219.76
+9.01 %
FY 1998
"City" Property Tax
$2,738.43
+$79.07
+2.97%
FY 1999
"City" Property Tax
$2,952.03
+$213.60
+7.80%
FY 2000
"City" Property Tax
$2,934.21
-$17.82
-0.60%
FY 2001
"City" Property Tax
$2,993.00
+$58.86
+2.00%
FY 2002
"City" Property Tax
$2,910.25
-$82.84
-2.76%
FY 2003
"City" Property Tax
$3,186.27
+$276.03
+9.48%
FY 2004
"City" Property Tax
$3,278.41
+$92.15
+2.89%
FY 2005
"City" Property Tax
$3,349.90
+$71.48
+2.18%
FY 2006
"City" Property Tax (1)
$3,152.52
-$197.38
-5.89%
FY 2007
"City" Property Tax
$3,538.03
+$385.50
+12.23%
FY 2008
"City" Property Tax
$3,688.64
+$150.62
+4.26%
FY 2009
"City" Property Tax
$3,554.71
-$133.94
-3.63%
FY 2010
"City" Property Tax
$3,524.48
-$30.23
-0.85%
FY 2011
"City" Property Tax
$3,585.16
+$60.68
+1.72%
FY 2012
"City" Property Tax
$3,736.64
+$151.48
+4.23%
FY 2013
"City" Property Tax
$3,855.96
+$119.32
+3.19%
FY 2014
"City" Property Tax
$3,942.14
+$86.20
+2.23%
FY 2015
"City" Property Tax (2)
$3,896.93
$147.72
-$45.21
-1.15%
FY 2016
"City" Property Tax (3)
$3,139.16
$692.62
-$757.77
-19.45%
FY 2017
"City" Property Tax (4)
$3,364.61
$982.19
+$225.45
+7.18%
FY 2018
"City" Property Tax (5)
$3,280.44
$959.11
-$84.16
-2.50%
FY 2019
"City" Property Tax (6)
$3,278.23
$843.08
-$2.21
-0.07%
FY 2020
"City" Property Tax (7)
$3,160.71
$860.57
-$117.52
-3.58%
FY 2021
"City" Property Tax (8)
$3,169.30
$779.03
+$8.59
+0.27%
FY 2022
"City" Property Tax (9)
$3,069.57
$779.50
-$99.73
-3.15%
FY 2023
"City" Property Tax
$3,060.34
$721.73
-$9.23
-0.30%
FY 2024
"City" Property Tax
$3,328.86
+$268.52
+8.77%
FY 2025
"City" Property Tax
$4,179.49
+$850.63
+25.55%
FY 2026
"City" Property Tax
$4,253.76
+$74.27
+1.78%
FY 1989-2026 Average Change
+$46.40
+1.67%
Page 278 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 37
The average annual dollar change in commercial property taxes from 1989-2026 is a
increase of $46.40. The average annual dollar change over the last five years is a
increase of +$216.89.
Projected impact on average commercial property:
PROJECTEDDOLLAR
FY 2027
CALCULATIO
"City" Property Tax
$5,023.81
+$770.05
PERCENT
+18.10%
FY 2028
"City" Property Tax
$5,116.26
+$92.45
+1.84%
FY 2029
"City" Property Tax
$5,211.20
+$94.94
+1.86%
FY 2030
"City" Property Tax
$5,211.20
+$94.94
+1.82%
FY 2031
1 "City" Property Tax
$5,477.70
+$149.73
+2.87%
(1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023.
(11)From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible
for a Business Property Tax Credit. The Business Property Tax Credit was deducted from
the property taxes owed and the credit was funded by the State of Iowa. Beginning in FY
2024, all commercial, industrial, and railroad properties will receive a property assessment
limitation on the first $150,000 of value of the property unit equal to the assessment
limitation for residential property. The value of the property unit that exceeds $150,000
receives the same ninety percent assessment limitation it has in the past.The $125 million
fund will continue to be appropriated each year for reimbursements to counties. County
auditors will file a claim for the first tier of the assessment limitations in September.
Assessors will continue to provide the unit configuration for auditors as these definitions
remained the same. Taxpayers are not required to file an application to receive the first
$150,000 of assessed value at the residential assessment limitation rate. Lawmakers
believe the new standing general fund will exceed the projected level of claims for fiscal
years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement
claims will begin being prorated. The projected backfill for Dubuque for the two-tier
assessment limitation in Fiscal Year 2024 is estimated to be $587,446.
Page 279 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 38
IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE
rCTUAL - HISTORIC..Illm
r-CITY TAX
CALCULATION
A
BUSINESS
PROPERTY TAJDOLLAR
CREDIT
CHANGEALCHANGE
PERCENT
FY 1989
"City" Property Tax
$5,900.35
-$1,074.65
-15.40%
FY 1990
"City" Property Tax
$5,844.55
-$55.80
-0.95%
FY 1991
"City" Property Tax
$6,133.00
+$288.45
+4.94%
FY 1992
"City" Property Tax
$6,387.05
+$254.05
+4.14%
FY 1993
"City" Property Tax
$6,249.45
-$137.60
-2.15%
FY 1994
"City" Property Tax
$6,302.95
+$53.50
+0.86%
FY 1995
"City" Property Tax
$5,891.05
-$411.90
-6.54%
FY 1996
"City" Property Tax
$5,891.05
$0.00
0.00%
FY 1997
"City" Property Tax
$5,690.75
-$200.30
-3.40%
FY 1998
"City" Property Tax
$5,700.56
+$9.81
+0.17%
FY 1999
"City" Property Tax
$5,536.70
-$163.86
-2.87%
FY 2000
"City" Property Tax
$5,358.00
-$178.70
-3.23%
FY 2001
"City" Property Tax
$5,533.00
+$175.00
+3.27%
FY 2002
"City" Property Tax
$5,380.42
-$152.58
-2.76%
FY 2003
"City" Property Tax
$5,106.00
-$274.42
-5.10%
FY 2004
"City" Property Tax
$5,136.50
+$30.50
+0.60%
FY 2005
"City" Property Tax
$5,036.00
-$100.50
-1.96%
FY 2006
"City" Property Tax (1)
$5,814.61
+$778.61
+15.46%
FY 2007
"City" Property Tax
$5,983.21
+$168.60
+2.90%
FY 2008
"City" Property Tax
$6,184.95
+$201.74
+3.37%
FY 2009
"City" Property Tax
$5,976.44
-$208.51
-3.37%
FY 2010
"City" Property Tax
$5,909.69
-$66.75
-1.12%
FY 2011
"City" Property Tax
$6,011.44
+$101.75
+1.72%
FY 2012
"City" Property Tax
$6,265.43
+$253.99
+4.23%
FY 2013
"City" Property Tax
$6,465.48
+$200.05
+3.19%
FY 2014
"City" Property Tax
$6,610.00
+$144.52
+2.24%
FY 2015
"City" Property Tax (2)
$6,131.80
$147.72
-$478.20
-7.23%
FY 2016
"City" Property Tax (3)
$5,256.41
$692.62
-$875.39
-14.28%
FY 2017
"City" Property Tax (4)
$5,043.36
$982.19
-$213.05
-4.05%
FY 2018
"City" Property Tax (5)
$4,917.78
$959.11
-$125.58
-2.49%
FY 2019
"City" Property Tax (6)
$4,869.91
$843.08
-$47.87
-0.97%
FY 2020
"City" Property Tax (7)
$4,713.76
$860.57
-$156.15
-3.21 %
FY 2021
"City" Property Tax (8)
$4,694.17
$779.03
-$19.59
-0.42%
FY 2022
"City" Property Tax (9)
$4,556.11
$779.50
-$138.06
-2.94%
FY 2023
"City" Property Tax
$4,521.00
$721.73
-$35.11
-0.77%
FY 2024
"City" Property Tax
$4,817.26
+$296.26
+6.55%
FY 2025
"City" Property Tax
$4,179.49
-$637.77
-13.24%
FY 2026
1 "City" Property Tax
$5,090.27
+$85.68
+2.05%
FY 1989-2027 Average Change
-$71.31
-1.13%
Page 280 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 39
1 2023-2027 Average Change) 1-$72.74 1 -1.35%
*Net of Business Property Tax Credit
The average annual dollar change in industrial property taxes from 1989-2026 is a
decrease of $71.31. The average annual dollar change over the last five years is a
decrease of $72.74.
Projected impact on average industrial property:
PROJECIIIWWCITY
FY 2027
"City" Property Tax
TAX
$6,000.54
DOLLAR
+$910.29
+17.88%
FY 2028
"City" Property Tax
$5,191.03
-$809.51
-13.49%
FY 2029
"City" Property Tax
$5,287.36
+$96.33
+1.86%
FY 2030
"City" Property Tax
$5,405.83
+$118.47
+2.24%
FY 2031
"City" Property Tax
$5,557.75
+$151.92
+2.81
(1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial
property as determined by the reappraisal.
(2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015.
(3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016.
(4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017.
(5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018.
(6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019.
(7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020.
(8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021.
(9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022.
(10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023.
(11) From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible
for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the
property taxes owed and the credit was funded by the State of Iowa. Beginning in FY 2024, all
commercial, industrial, and railroad properties will receive a property assessment limitation on
the first $150,000 of value of the property unit equal to the assessment limitation for residential
property. The value of the property unit that exceeds $150,000 receives the same ninety
percent assessment limitation it has in the past.The $125 million fund will continue to be
appropriated each year for reimbursements to counties. County auditors will file a claim for the
first tier of the assessment limitations in September. Assessors will continue to provide the unit
configuration for auditors as these definitions remained the same. Taxpayers are not required to
file an application to receive the first $150,000 of assessed value at the residential assessment
limitation rate. Lawmakers believe the new standing general fund will exceed the projected level
of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government
reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-
tier assessment limitation in Fiscal Year 2024 is estimated to be $587,446.
IMPACT ON MULTI -RESIDENTIAL PROPERTY - EXAMPLE
Page 281 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 40
HISTORICALACTUAL —
FY 2015 "City" Property Tax
CALCULA•
$2,349.34
DOLLAR
PERCENT
FY 2016
"City" Property Tax
$2,225.69
-$123.65
-5.26%
FY 2017
"City" Property Tax
$2,160.39
-$65.30
-2.93%
FY 2018
"City" Property Tax
$2,015.48
-$144.91
-6.71 %
FY 2019
"City" Property Tax
$1,870.21
-$145.27
-7.21 %
FY 2020
"City" Property Tax
$1,737.92
-$132.29
-7.07%
FY 2021
"City" Property Tax
$1,896.65
+$158.73
+9.13%
FY 2022
"City" Property Tax
$1,751.66
-$144.99
-7.64%
FY 2023
"City" Property Tax
$1,625.55
-$126.11
-7.20%
FY 2024 I "City" Property Tax $1,419.97
Average FY 2016-FY 2024
-$205.58
-12.65%
-$103.26
-5.28%
Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax
classification for rental properties called multi -residential, which requires a rollback, or
assessment limitations order, on multi -residential property which will eventually equal
the residential rollback. Multi -residential property includes apartments with 3 or more
units. Rental properties of 2 units were already classified as residential property.
The State of Iowa will not backfill property tax loss from the rollback on multi -residential
property. The rollback will occur as follows:
Fiscal Year
FY 2017
Rollback %
Annual Loss of Tax
Revenue
$331,239
86.25%
FY 2018
82.50%
$472,127
FY 2019
78.75%
$576,503
FY 2020
75.00%
$691,640
FY 2021
71.25%
$952,888
FY 2022
67.50%
$752,366
FY 2023
63.75%
$662,821
FY 2024
54.65%
$1,186,077
Total
$5 625 661
This annual loss in tax revenue of $1,186,077 from multi -residential property
when fully implemented in FY 2024 will not be backfilled by the State. From Fiscal
Year 2017 through Fiscal Year 2024 the City will lose $5,625,661 in total, meaning
landlords will have paid that much less in property taxes. The state did not require
landlords to charge lower rents or to make additional investment in their property.
In Fiscal Year 2024, the multi -residential property class was eliminated and is
reported with the residential property class.
Page 282 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 41
HISTORY OF INCREASES IN PROPERTY TAX ASKINGS
ImpactYear Tax Askings % Change
in Tax Askings Homeowner"
FY 1989 $10,918,759T
-12.00%1
-11.40%
Sales Tax Initiated
FY 1990
$10,895,321
-0.21 %
-0.89%
FY 1991
$11,553,468
+6.04%
+3.77%
FY 1992
$12,249,056
+6.02%
+3.58%
FY 1993
$12,846,296
+4.88%
+5.19%
FY 1994
$13,300,756
+3.54%
+0.33%
FY 1995
$13,715,850
+3.12%
+2.40%
FY 1996
$14,076,320
+2.63%
-0.87%
FY 1997
$14,418,735
+2.43%
-0.42%
FY 1998
$14,837,670
+2.91 %
-0.71 %
FY 1999
$15,332,806
+3.34%
0.00%
FY 2000
$15,285,754
-0.31 %
-0.17%
FY 2001
$15,574,467
+1.89%
0.00%
FY 2002
$15,686,579
+0.72%
0.00%
FY 2003
$15,771,203
+0.54%
-5.00%
FY 2004
$16,171,540
+2.54%
0.00%
FY 2005
$16,372,735
+1.24%
+0.03%
FY 2006
$16,192,215
-1.10%
+1.72%
FY 2007
$17,179,994
+6.10%
-1.72%
FY 2008
$18,184,037
+5.84%
0.00%
FY 2009
$18,736,759
+3.04%
+2.76%
FY 2010
$19,095,444
+1.91 %
0.00%
FY 2011
$19,878,962
+4.10%
+2.47%
FY 2012
$21,284,751
+7.07%
+5.00%
FY 2013
$22,758,753
+6.93%
+5.00%
FY 2014
$23,197,623
+1.93%
+4.90%
FY 2015
$24,825,015
+7.02%
+3.23%
FY 2016
$24,906,544
+0.33%
+2.63%
FY 2017
$26,375,291
+5.90%
+1.08%
FY 2018
$25,863,049
-1.94%
0.00%
FY 2019
$26,494,205
+2.44%
+1.91 %
FY 2020
$26,296,081
-0.75%
0.00%
FY 2021
$26,202,568
-0.36%
-0.14%
FY 2022
$26,215,401
+0.05%
0.00%
FY 2023
$26,215,887
0.00%
+2.96%
FY 2024
$26,633,490
+1.59%
+2.94%
FY 2025
$28,233,757
+6.01 %
+5.00%
FY 2026
$29,872,253
+5.80%
+3.90%
Average FY 1989-2026
+2.79%
+1.04%
Page 283 of 304
FY 2027 Budget & Fiscal Policy Guidelines
Page 42
**Does not reflect State unfunded portion of Homestead Credit.
IMPACT ON TAX ASKINGS AND AVERAGE RESIDENTIAL PROPERTY
To maintain the current level of service based on the previous assumptions would
require the following property tax asking increases:
FY
2027
PropertyFiscal "City"
$31,940,934
+6.93%
..Impact
Property..
+3.00%
on Avg.
+$26.67
FY
2028
$33,157,748
+3.81
%
+1.84%
+$16.86
FY
2029
$34,446,057
+3.89%
+1.85%
+$17.30
FY
2030
$35,920,816
+4.28%
+2.24%
+$21.29
FY
2031
$37,660,827
+4.84%
+2.32%
+$23.59
GUIDELIi
The recommended guideline is a 3.00% or $26.67 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.
These guidelines include an estimated $659,063 for recurring and $974,917 for
non -recurring improvement packages funded by a portion of the $5.3 million in
internal loans repaid to the General Fund by the Greater Downtown TIF District
and increased ambulance fees. Future years of the recurring improvement
packages will be funded by a portion of the 25% of Greater Downtown TIF District
that will be returned to taxing bodies in Fiscal Year 2028 and beyond. The amount
of improvement packages funded may change as the FY2027 budget is not yet
finalized.
Iowa House File 718 passed during the 2023 legislative sessions, replaces previous
changes made through Iowa Senate File 634 passed during the 2019 legislative
sessions, makes changes to Iowa city and county budgets and taxes for Fiscal Year
2025 and later. Additional steps have been added to the budget approval process. The
City of Dubuque is specifically impacted by the following steps of this new legislation:
Limits the General Fund levy by constraining growth by 2% or 3% each
year, depending on the trigger hit:
Non-TIF taxable growth under 3%, no reduction
Non-TIF taxable growth over 3% but less than 6%, 2% reduction factor
applied
Non-TIF taxable growth over 6%, 3% reduction factor is applied
The City of Dubuque Non-TIF taxable growth for FY2027 is 5.89%, the
General Fund levy is constrained by a growth reduction factor of 2%.
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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 $16.8 million or a levy rate of $5.3532
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.
3. March 20: County Auditor must send each property owner or taxpayer with
the county by regular mail an individual statement with the specified
information broken out by political subdivision comprising the taxpayer's
district.
4. Taxpayer Statements must include:
• Total Current Year Tax Rate and Dollars
• Combined effective property tax rate for the city calculated using
the sum of the current fiscal year's actual property tax certified for
levy of all of city's levies
• Proposed Budget Year Tax Rate and Dollars
• If the Proposed Budget Property Tax Dollars exceed the current
fiscal year's actual property tax dollars, a detailed statement of the
major reasons for the increase, including the specific purposes or
programs for which the city is proposing an increase
• An example comparing the amount of property taxes on a
residential property with an actual value of $100,000 in the current
fiscal year and such amount on the residential property using the
proposed property tax dollars for the budget year, including the
percentage difference in such amounts.
• An example comparing the amount of property taxes on a
commercial property with an actual value of $300,000 in the current
fiscal year and such amount on the commercial property using the
proposed property tax dollars for the budget year, including the
percentage difference in such amounts.
• The city's percentage of total property taxes certified for levy in the
owner's or taxpayer's taxing district in the current fiscal year
amount all taxing authorities.
• The date, time, and location of the city's public hearing on the
information contained in the statements.
• Information on how to access the city's internet site, the city's
statements, and other budget documents for prior fiscal years.
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5. Public hearing on proposed property tax amounts for the budget year and
new taxpayer statements.
• In addition to public hearing to adopt the budget.
• Replaces maximum property tax dollars public hearing held in prior
years.
• Must be separate from any other meeting of City Council, including
any other meeting or hearing related to the budget.
• City Council can decrease, but not increase, the proposed property
tax amount to be included in the budget.
6. Budget Certification deadline to Iowa Department of Management is April
30th instead of March 31 st.
• If City is issuing new debt that uses the debt service levy, budget
must be adopted by April 15th.
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CAPITAL IMPROVEMENT BUDGET GUIDELINES
U. INTEGRATION OF CAPITAL RESOURCES
GUIDELINE
To obtain maximum utilization, coordination and impact of all capital improvement
resources available to the City, state and federal block and categorical capital
grants and funds shall be integrated into a comprehensive five-year Capital
Improvement Program (CIP) for the City of Dubuque.
V. INTEGRITY OF CIP PROCESS
GUIDELINE
The City shall make all capital improvements in accordance with an adopted
Capital Improvement Program (CIP). If conditions change and projects must be
added and/or removed from the CIP, the changes require approval by the City
Council.
W. RENOVATION AND MAINTENANCE
GUIDELINE
Capital improvement expenditures should concentrate on renovating and
maintaining existing facilities to preserve prior community investment.
X. NEW CAPITAL FACILITIES
GUIDELINE
Construction of new or expanded facilities which would result in new or
substantially increased operating costs will be considered only if:
1) their necessity has been clearly demonstrated
2) their operating cost estimates and plans for providing those operating costs
have been developed
3) they can be financed in the long term; and
4) they can be coordinated and supported within the entire system.
Y. COOPERATIVE PROJECTS
GUIDELINE
Increased efforts should be undertaken to enter mutually beneficial cooperative
capital improvement projects with the county, school district and private groups.
Examples include cost -sharing to develop joint -use facilities and cost -sharing to
improve roads and bridges are examples.
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Z. USE OF GENERAL OBLIGATION BONDS
DISCUSSION
The Iowa Constitution limits the General Obligation debt of any city to 5% of the actual value of the
taxable property within the city. The Iowa legislature has determined that the value for calculating
the debt limit shall be the actual value of the taxable property prior to any "rollback" mandated by
state statute.
On October 15, 2012, the City Council adopted a formal Debt Management Policy for the City of
Dubuque. An amendment to this policy was adopted by City Council on December 15, 2025. Prior
to adoption of the formal policy, the City had already been practicing much of the policy, although
the formal policy included some new additions. The most significant components of the Debt
Management Policy include an internal policy of maintaining the City's general obligation
outstanding debt at no more than 95% (except as a result of disasters) of the limit prescribed by the
State constitution as of June 30th of each year. It is projected as of June 30, 2026 the City will be at
33.50%. City will not use short-term borrowing to finance operating needs except in the case of an
extreme financial emergency which is beyond its control or reasonable ability to forecast. Currently
there is no such debt, and none will be recommended in this process.
Bond Financing Stipulations
• Recognizing that bond issuance costs (bond counsel, bond rating, and financial management
fees) add to the total interest costs of financing:
• Bond financing should not be used if the aggregate cost of projects to be financed by the
bond issue is less than $500,000
• City will consider long-term financing for the construction, acquisition, maintenance,
replacement, or expansion of physical assets (including land) only if they have a useful life of
at least five years
• City shall strive to repay 20 percent of the principal amount of its general obligation debt
within five years and at least 40 percent within ten years.
• The City shall strive to repay 40 percent of the principal amount of its revenue debt within ten
years.
Bond Ratings
In January 2025, Moody's Investor Services affirmed the Aa2 credit rating on general obligation
bonds. Moody's credit analysis states, "the City of Dubuque's local economy benefits from its role
as a regional economic center, with solid resident income and full value per capita. Financial
operations are strong and will remain so despite declines in fund balance over the next few years,
as it expends funds from the pandemic. Long-term liabilities and fixed cost ratios are moderate and
will remain so despite future borrowing needs." According to Moody's, the Aa2 issuer rating for the
City of Dubuque's bonds reflects the city's healthy economic base, which serves as a regional
economic center. Other rationale stated for the rating include full value per capita and adjusted
resident income are solid at around $109,000 and 98% respectively, though weaker than Aa peers,
in part because of a large student population, available fund balance was strong at around 60% of
revenue at the close of fiscal 2023 (year-end June 30), and cash was stronger at 85% of revenue.
The City's available fund balance will likely remain well over 45%, despite some planned draws in
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fiscal 2024 and fiscal 2025 to spend down federal funds from the pandemic. Despite the state
adopting new property tax restrictions, revenue raising flexibility remains strong because the City
maintains significant margin in its employee benefits fund and is not utilizing its emergency levy.
The long-term liabilities ratio will likely remain well under 300% inclusive of the current issuances
and future borrowing plans, and fixed -costs ratio will remain well below 20%.
In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds
from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to A1.
Notable credit factors include strong financial operations and ample revenue -raising flexibility, which
has resulted in steadily improved available fund balance and cash. The City serves as a regional
economic center and its regional economic growth rate has outpaced the nation over the past five
years.
In November of 2022, Moody's Investors Service ("Moodys") released a new rating methodology for
cities and counties. Two significant changes result from the new methodology; cities are now
assigned an issuer rating meant to convey the creditworthiness of the issuer as a whole without
regard to a specific borrowing, and business -type enterprise funds are now being considered
together with general fund revenues and balances in the determination of financial performance.
Under the new methodology, there are two metrics that contribute to financial performance.
Available Fund Balance Ratio ("AFBR") _ (Available Fund Balance + Net Current Assets/Revenue)
and Liquidity Ratio ("LR") _ (Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35,
and LR ranges from 30-40%.
The City was evaluated by Moody's under the old methodology in May of 2022 in connection to its
annual issuance of bonds. At that time, Moody's calculated the City's AFBR to be 45.2%, and its LR
to be 59.8%. The balances used in these calculations were likely elevated due to unspent ARPA
funds. The change in methodology will now consider revenues and net assets from business -type
activities in these calculations. As such, the City's general obligation rating will now be directly
impacted by the financial performance of enterprise funds. Establishing rates and charges adequate
to provide both debt service coverage and significant liquidity will be necessary to maintain the
City's ratings.
In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's outstanding revenue
bonds from 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.
General Obligation Debt
Fiscal Year 2026 Debt
FY 2026 Debt Limit: The FY 2024 assessable value of the community for calculating the statutory
debt limit is $6,472,591,693, which at 5%, indicates a total General Obligation debt capacity of
$323,629,585, which at 5%, indicates a total General Obligation debt capacity of $323,629,585.
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Based on Outstanding G.O. debt (including tax increment debt, remaining payments on
economic development TIF rebates, and general fund lease agreement) on June 30, 2026 will
be $108,410,164 (33.50% of the statutory debt limit) leaving an available debt capacity of
$215,219,421 (66.50%).
It should be noted that most of the City of Dubuque's outstanding debt is not paid for with property
taxes (except TIF), but is abated from other revenues. Exceptions include one issuance for the
replacement of a Fire Pumper truck in the amount of $1,410,000 with debt service of $83,700 in FY
2026 and one issuance for the franchise fee litigation settlement in the amount of $2,800,000 with
debt service of $145,000 in FY 2026. Included in the debt is $4,661,120 of property tax rebates to
businesses creating and retaining jobs and investing in their businesses.
100%
75%
50%
25%
Statutory Debt Limit
Statutory Debt Limit Used
(as of June 30th)
TI M Z1 m1 M M '7 T TI TI -1 m n -1 -1 -1 M M M M -1
Ln 0) r 00 W O N W A U1 a) v 00 Co O N W A U1
FY16 Adopted FY26 Adopted
The City also has debt that is not subject to the statutory debt limit. This debt includes
revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater fees on
June 30, 2026 will have a balance of $167,789,201. The total City indebtedness as of June
30, 2026, is projected to be $289,568,909. The total City indebtedness as of June 30, 2025,
was $281,085,184. In FY 2026, the City will have a projected $8,483,725 or 3.02% more
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in debt. The City is using debt to accomplish necessary projects and to take advantage of
the attractive interest rates in the current market.
The following chart shows Dubuque's relative position pertaining to use of the statutory debt
limit for Fiscal Year 2026 compared to the other cities in Iowa for Fiscal Year 2025 with a
population over 50,000:
Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest Iowa Cities
Rank
City
Legal Debt Limit
(5%)
Statutory Debt
Outstanding
Percentage of Legal
Debt Limit Utilized
11
Des Moines FY25
$ 964,798,967
$ 573,230,000
59.41 %
10
Cedar Rapids FY 25
$ 767,559,335
$ 428,550,000
55.83 %
9
W. Des Moines (FY25)
$ 551,635,692
$ 307,090,000
55.67 %
8
Waterloo FY25
$ 267,626,798
$ 137,905,065
1 51.53 %
7
Sioux City (FY25)
$ 367,743,172
$ 146,935,000
1 39.96 %
6
Davenport (FY25)
$ 493,660,291
$ 176,195,000
35.69 %
5
Dubuque (FY26)
$ 323,629,585
$ 108,410,164
33.50 %
4
Ankeny FY25
$ 529,988,951
$ 97,645,000
18.42 %
3
Ames FY25
$ 328,345,527
$ 56,710,000
17.27 %
2
Iowa City FY25
$ 435,367,793
$ 65,945,000
15.15 %
1
Council Bluffs FY25
$ 427,559,692
$ 61,320,000
14.34
Average w/o Dubuque
$ 205,152,507
36.33 %
Percent of Legal Debt Limit Utilized
75%
50%
5 0
0/o �17.27% 18.42%
14.34% 15. 5%
o
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33.50% 35.E
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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. The average of the other cities (36.33%) is 8.4% higher than
Dubuque (33.50%).
By the end of the Recommended 5-Year Capital Improvement Program (CIP) budget, the total
amount of debt for the City of Dubuque would be $310.62 million (32.90% of the statutory debt
limit). Projections out 10 years to Fiscal Year 2035 show the City of Dubuque at 19.66% of the
statutory debt limit, and the projection is to be at $200.79 million (19.66% of statutory debt limit)
within 10 years.
Total Debt (In Millions)
$324
N $305.7$308.2$310.6
$302.3
$297 290.1 - $293.6
$z8s.s lU
295.5 $282.0 $279.9 $281.1
$285.7 $265.6 $267.4 L$2
$270
$274.7 265.9
$264.0 $250.6 $2 .
$244.3$241.
$243 $252.1 $249. 1.1
$243.
$2 .5 ,
$216 L $226.2 IF-J $222.2
$189 L r 1 r $200.8
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
FY16 Adopted FY26 Adopted
The escalation observed in Fiscal Year 2025 is attributable to the City's decision to issue
budgetary debt for both Fiscal Year 2024 and Fiscal Year 2025 within a single fiscal period.
This approach resulted in a significant increase in the aggregate debt reported for Fiscal
Year 2025.
Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation Program.
Through a new state program, the City is able to issue $28.25 million in revenue bonds payable
from the 5 percent State Sales Tax increment for projects in the Bee Branch Watershed allowing the
City to complete the Bee Branch Creek Restoration, construct permeable alleys, replace the Bee
Branch flood gates, complete North End Storm Sewers, construct a Flood Control Maintenance
Facility, install Water Plant Flood Control and complete 17t" Street Storm Sewer over the next
twenty years.
The ten year history of the City's use of the statutory debt limit is as follows:
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY24
FY25
FY26
86.54%
66.06%
59.79%
52.90%
46.91 %
1 43.51 %
43.33%
39.36%
40.07%
34.85%
1 33.50%
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As we approach the preparation of the FY 2027-2031 Capital Improvement Program (CIP) the
challenge is not the City's capacity to borrow money but (a) how to identify, limit, and prioritize
projects which justify the interest payments and; (b) how to balance high -priority projects against
their impact on the property tax rate.
GUIDELINF
There are many high priority capital improvement projects which must be constructed
during the FY 2027 - FY 2031 period. The potential of partially forgivable State
Revolving Fund Loans and an increase in grant funding may impact the need to borrow
for projects. As in the past, debt will be required on several major capital projects,
including the Bee Branch Watershed Project, Airport Improvements, Park
Improvements, Sidewalk and Street Improvements, Sanitary Sewer Fund, Parking
Fund, and Water Fund. Borrowings will also include smaller projects and equipment
replacements such as Park developments and Public Works equipment. These smaller
borrowings will be for a term not exceeding the life of the asset and not less than six
years in accordance to the Debt Management Policy. Alternative sources of funds will
always be evaluated (i.e. State Revolving Loan Funds) to maintain the lowest debt
service cost.
AA. ROAD USE TAX FUND
DISCUSSION
Actual Road Use Tax Fund receipts are as follows:
FY 2015
FY 2016
FY 2017 I
FY 2018 I
FY 2019 I
FY 2020 I
FY 2021 I
FY 2022 I
FY 2023
FY 2024
FY 2025
Road Use Tax
(In Millions)
$6.0
$7.1
$7.2
$7.3
$7.5
$7.4
$8.6
$8.2
$8.2
$8.4
$8.4
$1.0 62.L $3.0 $4.0 $5.0 $6.0 $7., $8.0 $9.0
The FY 2026 budget was based on receiving $8,400,000 in Road Use Tax funds. In FY 2026, 100%
of the Road Use Tax income is in the operating budget. The State of Iowa increased the gas tax 10
cents per gallon in FY 2016.
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With increases in City DMATS and State Road Use Tax funds, the City will be able to substantially
add to the number of street lights and continue with major road improvements.
GUIDELINE
IIt is preferable to shift Road Use Tax funds to the capital budget for street maintenance
and repair to reduce the need to borrow funds for routine street maintenance and
improvements. This shift cannot occur until there are increased revenues or reduced
expense that would allow this shift without a property tax impact. The City does use
30% of the local option sales tax for street projects and maintenance of City buildings.
BB. COMMERCIAL AND INDUSTRIAL DEVELOPMENT
GUIDELINE
Current City, commercial and industrial development efforts should be continued to (a)
preserve current jobs and create new job opportunities and (b) enlarge and diversify
the economic base. Financing these efforts and programs should continue to be a high
priority.
CC. HOUSING
GUIDELINE
To maintain an adequate supply of safe and decent housing, the City should strive to
preserve existing single family and rental housing that is not substandard and provide
opportunities for development of new housing, including owner occupied, within the
City's corporate limits for all residents, particularly for people of low and moderate
(income. Workforce rental housing is becoming increasingly important and the City
provides incentives for building rehabilitations. In 2023, the City Council adopted
housing incentive programs through the use of Tax Abatement and Tax Increment
Financing.
DD. SALES TAX
GUIDELINE
Sales Tax revenue shall be used according to the following split:
Sales Tax 50%: Property Tax Relief
Sales Tax 30%:
(a) The reduction by at least 75% of street special assessments.
30% (b) The maintenance and repair of streets.
Sales Tax 20%:
(a) The upkeep of City -owned property such as sidewalks, steps, storm
20% sewers, walls, curbs, traffic signals and signs, bridges, buildings, and
facilities (e.g. Airport, Five Flags Center, Library, Law Enforcement
Center, City Hall, Fire Stations, Parks, and Swimming Pools).
(b) Transit equipment, such as buses
(c) Riverfront and wetland development
(d) Economic Development Projects
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EE. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE DUBUQUE
RACING ASSOCIATION
DISCUSSION
The contract with the Dubuque Racing Association calls for distribution at the end of its fiscal year,
December 31s', of 50 percent of its net cash operating funds to the City of Dubuque. In early -
February, the City receives payment of proceeds to be distributed. These proceeds are then
allocated for capital improvements, with the highest priority given to reducing the City's annual
borrowing.
The Dubuque Racing Association provides the City with projections of future distributions. Since
gaming is a highly volatile industry, the estimates are discounted prior to including them in the City's
Five -Year CIP.
The February 2027 DRA distributions will be used in Fiscal Year 2027 to 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. A change from past use of DRA distributions, 0% of the February 2027 projections of
operating surplus have been anticipated as resources to support the Fiscal Year 2027 capital
improvement projects. The estimates received from the DRA will be reduced by 5 percent for FY
2029 resources, 10 percent for FY 2030, and 15 percent for FY 2031 resources, to provide a margin
of error in case the estimates are not realized.
GUIDELINE
$1,286,001 of February 2027 DRA distributions will be used for FY2027 property tax
relief. This is a change from past use of DRA distributions because all funds will be
used for Fiscal Year 2027 operations.ln Fiscal Year 2026 and beyond, the City
anticipates distribution of a significant amount of net cash proceeds for use in the
Capital Improvement Program. These amounts will be budgeted in the Five -Year CIP
in the year they are received and will be used to reduce required General Obligation
borrowing. The three out -years will be discounted by 5 percent, 10 percent, and 15
percent respectively.
FF. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING BUDGET
EXPENSE
GUInFI INF
Capital improvement expenditures that will reduce future maintenance and operating
expense will receive priority funding and these types of initiatives will be encouraged in
all departments and funding sources as a means of maximizing the use of available
resources. This emphasis reflects fiscally responsible long-range planning efforts.
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GG. USE OF GAMING -RELATED RECEIPTS
DISCusSiOn
On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for
lease of the Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5%
of coin -in. The amendment increased the amount retained by the DRA for the operating budget
reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to
the Depreciation and Improvement Fund for facility maintenance. In addition, In addition, the
distribution of net profit is now split three ways between the City, charities, and the Schmitt Island
Master Plan Implementation from a two-way split between the City and charities. The amended
lease has an expiration date of December 31, 2055.
The following shows the historical split of DRA gaming taxes and rents between the City's operating
and capital budgets:
Split of DRA Gaming Taxes & Rents Between Operating & Capital Budgets
100%
50% 25% 24%15%14%10%
3%
—%
1 % 3%
4% 4% —% —%
—%
75% -
50% —
o
0
o
O
0
o
o
o
O O
0 0 0
00 0 0 0
O O O O O
0 0 0 0
0 0 0 0 0
o
0
0
C O
0 0
0 0
0 -
o
r-
o ti
o
r`
o 0 0 0
0 0 0 0 0
r-
0
0 0
0
L 0 0
ao
o ti
25% o
LO
—% -
*
O ** .* **
Operating Capital
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Notable Changes:
*FY 2004 A new lease took effect with the Dubuque Racing Association for lease of the Dubuque
Greyhound Park and Casino. This new lease was negotiated after the FY 2005 budget was
approved and raised the lease payment from 1/2% of coin -in to 1 % of coin -in. This new lease and the
expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000
gaming positions, effective August 1, 2005, provided additional revenues to the City of Dubuque.
**FY 2009 The Diamond Jo expanded to a land -based barge casino facility and increased to 1,100
slots on December 1, 2008. This expansion was projected to decrease the Q gaming market and
correspondingly the coin -in by just over 21 percent. Based on the projected market share loss, the
City did not receive a distribution of cash flows from the Dubuque Racing Association (DRA) in
Fiscal Years 2009 and 2010.
***FY 2010 The operating portion of the split now includes the debt service required on the 2002
general obligation bonds for the America's River Project that was previously considered as part of
the capital portion of the DRA lease. Debt obligations are considered a continuing annual expense
and are more accurately reflected as part of the operating portion of the DRA lease.
****FY 2011 DRA distributions restarted in FY 2011 instead of the projected year of FY 2012.
*****FY 2016 A reduction in revenue in the Greater Downtown TIF urban renewal area resulted in
reduced revenues to make debt payments and it was necessary for the general fund to support
$84,104 in FY 2015 and $78,242 in FY 2016 of debt service payments, which were funded by
reducing the amount of gaming revenues from taxes and DRA lease that goes to capital
recommended in FY 2016.
*******FY 2021 A lease amendment took effect with the Dubuque Racing Association for the lease of
the Q Casino. This lease amendment added a payment equal to'/2% of monthly sports wagering
conducted on Q Sportsbook retail or Q advance deposit sports wagering internet site.
"'*'**FY 2022 A lease amendment took effect with the Dubuque Racing Association for lease of the
Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5% of coin-
in.The amendment increased the amount retained by the DRA for the operating budget reserve
from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the
Depreciation and Improvement Fund for facility maintenance. The split of annual distribution was
changed from 50% City/ 50% charity to one third City, one third charity, one third Chaplain Schmitt
Island Development Fund. In addition, the amended lease has an expiration date of December 31,
2036.
*****"'FY 2023 A lease amendment took effect with the Dubuque Racing Association for lease of the
Q Casino. This lease amendment extended the termination date from 2036 to 2055. The
amendment allows $1.5 million of cash reserve fund as a down payment of a construction loan in
FY23. The DRA is required to establish a debt reserve fund equal to one year of debt payments,
almost $7 million.
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The change in market share and changes in the lease agreement impacts the City's lease payment
from the DRA. The new lease effective 1/1/22 requires the DRA to pay the City 1.5 percent of coin
in from slot machines, 4.8 percent of gross revenue from table games, and 0.5 percent of sports
wagering.
In calendar year 2025, the DRA (Q Casino) reported an increase of +8.7% in gross gaming revenue
(GGR), while Diamond Jo Casino experienced a slight decline of -1 % compared to calendar year
2024. The overall Dubuque gaming market reached approximately $125.7 million in calendar 2025,
reflecting a +2.5% increase from the $122.6 million reported in calendar year 2024. The growth in
GGR at DRA (Q Casino) was anticipated, as several redeveloped outlets —including the casino
floor, food and beverage (F&B) operations, and banquet facilities —were fully open during the year.
In addition to gaming revenue growth, the DRA continued to see growth in non -gaming revenue
streams, particularly in food and beverage and the newly developed banquet and event space. This
combined growth contributed to an overall increase in total gross revenue of approximately +9% in
calendar year 2025 compared to calendar year 2024.
Looking ahead, the DRA projects that gross gaming revenue will remain relatively flat in calendar
year 2027, primarily due to the anticipated opening of the Linn County (Cedar Rapids) casino on
December 31, 2026. Despite this, total gross revenue is expected to increase by approximately
+2.63% in 2027, driven by continued expansion in auxiliary revenue streams such as hotel
operations, food and beverage, and banquet services.
Beyond 2027, the DRA forecasts moderate growth in gaming revenue, with projected increases of
+3.4% in FY 2028, +2.1 % in FY 2029, +1.0% in FY 2030, and +1.0% in FY 2031. Total gross
revenue is expected to grow at similar but slightly higher rates, with projected increases of +3.3% in
FY 2028, +2.2% in FY 2029, +1.3% in FY 2030, and +1.0% in FY 2031.
A new Hard Rock Casino has opened in Rockford, Illinois.
Additionally, the Ho -Chunk Nation has announced plans to develop a $705 million casino, hotel,
and conference center in Beloit, Wisconsin, to be constructed in multiple phases. The casino
component is currently scheduled for completion in the fourth quarter of 2026." Competition from
these new casinos follows years of the State of Illinois allowing slot machines in taverns.
The 500 per patron tax previously received from the Diamond Jo was replaced by a $500,000 fixed
payment based on their revised parking agreement which expires June 16, 2029.
Page 298 of 304
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2027
Department Description Recurring/Non- ADDL ADDL Net Tax
Recurring Expense Revenue Impact
RECURRING DECISION PACKAGE COSTS - General Fund
City Attorney
Annual and recurring license that would give the City Attorneys Office direct access to Police
R
$ 600
$ 469
$ 131
Department records. Records are often needed for traffic court, simple misdemeanors and
munci al infractions.
City Clerk
Business license and permits fee increases. These updates are intended to reflect
R
$ -
$ 2,145
$ (2,145)
administrative time and compliance oversight required to manage these licenses and permits.
City Manager's Office
Growing Sustainable Communities Conference elimination due to significant cost increases
R
$ (91,145)
$ 79,302
$ (11,843)
and reduced momentum in sponsorships.
Community Impact
Increase citys financial support for Community Impact Administrative Support position by 0.58
R
$ 43,157
$ -
$ 43,157
FTE. Historically, this portion of the position has been funded by the AmeriCorps grant. Due to
the expanding of the department, additional duties have emerged that are unrelated to the
AmeriCoros operational needs.
Economic Development
Bringing in a Arts Grants Consultant for grant eligibility and financial review process. Hiring a
R
$ 3,000
$ 10,417
$ (7,417)
consultant would elminate the need for a 0.25 FTE intern position and provide cost savings.
Economic Development
SlideRoom Grant Application Software is essential for managing applications and post -grant
R
$ 3,000
$ -
$ 3,000
reports for Arts & Cultural Affairs grant programs. This software ensures a fair and efficient
process.
Emergency Communications
911 Public Safety Applicants testing software upgrade. This softwares allows to administer an
R
$ 2,368
$ 1,184
$ 1,184
unlimited number of online tests to applicants at home.
Emergency Communications
Software to track training requirements for 911 Dispatch staff
R
$ 3,000
$ 1,500
$ 1,500
Emergency Communications
Emergency Communications Vehicle. Due to the new center location, staff are traveling more
R
$ 40,000
$ 5,000
$ 35,000
for in -person meetings. 75 % of the vehicle use would be for City purposes and 25 % for the
Emergency Communications purposes.
Engineering
Full size cargo van equipped with storage racking, tools and supplies for Facilities
R
$ 62,000
$ -
$ 62,000
Maintenance.
Engineering
1.0 FTE Maintenance worker for all City Buildings. Current staffing levels are not sufficient to
R
$ 86,439
$ -
$ 86,439
maintain buildings in a safe, reliable, and cost-effective manner.
Engineering
1.0 FTE Custodian I for the Bright Minds Campus on Chavenelle Rd location. A portion of the
R
$ 77,793
$ 40,581
$ 37,212
costs for this position will be shared between other tenants of the facility.
Engineering
New truck for the Engineering Technician position. The addition of this truck will ensure the
R
$ 49,500
$ -
$ 49,500
new Engineering Technician position can perform duties efficiently and safely without relying
on shared or personal vehicles.
Engineering
Increased funding for the partnership with the East Central Intergovernmental Association to
R
$ 50,000
$ -
$ 50,000
maintain Dubuque's traffic modeling system.
Fire
New Position for Fire Code Official / Fire Prevention & Plan Review Manager. The cost of this
R
$ 195,202
$ -
$ 195,202
package includes wage, benefits, vehicle, equipment and office set up. This position is
designed to strengthen citywide fire and life safety code compliance, improve efficiency in the
development review process, and enhance collaboration amount key departments and private
ef.4ehnHe
Fire
Addition of a new Computer Workstation at Fire station 4. There are currently two shared
R
$ 2,075
$ -
$ 2,075
computer workstations, one used by the company officer who manages daily station
operations, administrative duties, and incident reporting, and a second shared amount the four
firefiahter paramedics assioned to the station.
Fire
Annual Generator Maintenance. The generators were purchased in FY2025 and were under
R
$ 3,120
$ -
$ 3,120
warranty for one year and will now transition to regular annual service. Each generator will
receive an annual check and service to replace worn parts which will keep each generator
functioning.
Fire
Firefighter 1: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 2: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 3: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 4: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 5: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 6: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 7: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Page 299 of 304
Department Description Recurring/Non- ADDL ADDL Net Tax
Recurring Expense Revenue Impact
RECURRING DECISION PACKAGE COSTS - General Fund
Fire
Firefighter 8: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Firefighter 9: The Dubuque Fire Department is requesting nine (9) firefighter/paramedic
R
$ 108,242
$ 80,678
$ 27,564
positions in FY27 to enhance the department's minimum staffing levels. These positions will be
pursued through a FEMA SAFER (Staffing for Adequate Fire and Emergency Response)
Grant in the summer of 2026.
Fire
Incorporating Scenario -based assessments promotional testing process which occurs once
R
$ 9,000
$ -
$ 9,000
every two years. The addition of an assessment center component will enhance the evaluation
of candidates by requiring them to demonstrate practical leadership and decision -making skills
in simulated environments.
Fire
Creation of Dubuque Fire Explorer Post Program for youth ages 14-18. Request was
N
$ 10,000
$ -
$ 10,000
submitted as recurring. Recommended as non -recurring.
Health Services
CitizenServe Permitting and Inspection (7) software licenses. This software can be configured
R
$ 10,500
$ -
$ 10,500
to reflect City of Dubuque health and animal control codes, associated citations, fines and
reporting.
Health Services
Part -Time Animal Control Officer to enhance weekday and weekend service coverage and
R
$ 50,822
$ -
$ 50,822
support the successful implementation of the City's new animal licensing program. Currently,
the program operates with two full-time Animal Control Officers.
Housing & Community Development
Two ICC Premium Complete subscriptions, which provide full online access to ICC's code
R
$ 1,300
$ -
$ 1,300
library. Premium Complete access includes all published ICC code books, many referenced
standards, official code interpretations, and advanced search tools. It also allows printing of
code sections to share with citizens, providing clearer communications and helping them better
understand applicable code requirements.
Housing & Community Development
Housing and Community Development Administrative Support Professional (Requests in
R
$ 69,548
$ -
$ 69,548
General Fund and Lead Fund).
Information Technology
User Technology Support Specialist to support the increased demand for IT infrastructure and
R
$ 91,867
$ -
$ 91,867
support services. Timely and effective technical support is crucial to maintain productivity and
minimize disruptions. The IT department currently has two User Technology Support
Specialists.
Information Technology
Lead Applications Network Analyst. This position primarily focuses on all City application
R
$ 105,435
$ -
$ 105,435
support with increased software and artificial intelligence use. The IT department currently has
three Lead Applications Network Analysts, with two of these positions primarily focused on
public safety.
Information Technology
IT Service Management Software - combines several pieces of software that IT currently uses
R
$ 75,000
$ -
$ 75,000
under one umbrella. This new software includes advanced security features to protect our
data, safeguard against cyber threats, and ensure compliance with industry standards. It
automates routine tasks such as software updates, patch management, and device
provisioning, reducing manual workload and minimizing downtime.
Information Technology
Addition of a second IT vehicle. The current vehicle is checked out and shared between 18
R
$ 40,000
$ -
$ 40,000
staff members. A second vehicle would alleviate more staff needing to use their personal
vehicles and claiming mileage costs. With the IT staff relocation to the new offices, this issue
is compounded with staff need to drive additional distance to every City building, incurring
more mileage.
Parks
1,510 (.72 FTE) additional hours for temporary Park Rangers during the park season.
R
$ 39,865
$ -
$ 39,865
Currently there is one Park Ranger scheduled for evenings Monday through Thursday and two
Park Rangers scheduled for evenings on Friday, Saturday and Sunday. The increased hours
would provide for two Park Rangers on Monday through Thursday evenings and additional
daytime hours on Saturdays and Sundays. The hours would also decrease time needed by
the Police Department to respond to calls that park rangers can handle.
Parks
1.0 FTE Forestry Technician. The Forestry Laborer positions have been difficult to fill due the
R
$ 73,586
$ -
$ 73,586
requirement of a commercial drivers license to operate the forestry equipment. This does not
allow for forestry staff to efficiently perform their duties especially during storm response. The
Forestry activity has seen an increased workload due to more frequent storms, tree plantings,
and additional training and work requirements. There are currently Forestry Technicians (2.0
FTE) in the Forestry Activity. Funds are also budgeted for (2) Temporary Forestry Laborers
(1.0 FTE).
Parks
1.0 FTE Maintenance Technician responsible for all areas of park maintenance as
R
$ 73,586
$ -
$ 73,586
recommended by the Parks and Recreation Comprehensive Master Plan.
Parks
1.0 FTE Assistant Field Operations Manager to ease the administrative burden and support
R
$ 106,120
$ -
$ 106,120
the Parks Division Manager as recommended by the Parks and Recreation Comprehensive
Master Plan.
Parks
1.0 FTE Maintenance Technician responsible for all areas of park maintenance as
R
$ 73,586
$ -
$ 73,586
recommended by the Parks and Recreation Comprehensive Master Plan.
Parks
1.0 FTE Maintenance Technician responsible for all areas of trail maintenance as
R
$ 73,586
$ -
$ 73,586
recommended by the Parks and Recreation Comprehensive Master Plan.
Parks
1.0 FTE Assistant Horticulturist to support the landscaped areas in roundabouts, new parks
R
$ 73,586
$ -
$ 73,586
and City owned landscape improvements. This position is recommended by the Parks and
Recreation Comprehensive Master Plan.
Police
New Crime Analyst Intern Position (0.25 FTE). Several instructors with various colleges in the
R
$ 9,011
$ -
$ 9,011
area have reached out inquiring about internships in criminal analytics. In 2025, a full-time
Crime Analyst position was created to improve data -driven decision -making. As this position
has grown, a growing need has been identified that could be filled by an intern position.
Public Works
Fleet A/C Machine (R-1234yf). Around 2013-2017, most new vehicles began adopting R-
R
$ 9,750
$ -
$ 9,750
1234yf, a low -global -warming -potential (GWP) refrigerant replacing R-134a. The city -owned
vehicles that fall within this category, currently require a dealer due to city equipment not being
compatible.
Public Works
Street Maintenance overtime for Barricades/Bollards during Special Events
R
$ 10,000
$
$ 10,000
Public Works
Fleet Service Coordinator (1.0 FTE). The responsibilities for this position would be split from
R
$ 79,462
$ 79,462
the Fleet Purchasing & Service Coordinator to improve workflow reliability, strengthen
communication and align Public Works with APWA Accreditation standards.
Page 300 of 304
Department Description Recurring/Non- ADDL ADDL Net Tax
Recurring Expense Revenue Impact
RECURRING DECISION PACKAGE COSTS - General Fund
Recreation
Golf cart passes increased $50 (from $650 to $700). These passes are sold separately from
R
$ -
$ 2,600
$ (2,600)
the annual Golf Pass which covers the pass holder's daily rounds.
Recreation
Reallocation and reduction of temporary employee expenses (-0.50 FTE). Within the budget
R
$ (26,659)
$ -
$ (26,659)
activities of Youth Sports, Recreation Classes, and Therapeutic Recreation, the program are
beinq corrected based on current operations.
Recreation
Mobile Event Trailer - 0.1 FTE and income increase. Since the addition of the mobile Rec &
R
$ 2,641
$ 2,700
$ (59)
Roll trailer program, the department consistently receives inquiries as to the option to rent out
the trailer.
Recreation
Full-time Community Outreach & Public Communications Coordinator (1.0 FTE, NB-11).
R
$ 106,668
$ -
$ 106,668
Recommended from Parks & Rec master plan. This position is needed due to citizens not
being aware of Parks and Recreation offerings.
Part-time Bus Attendant Position (0.50 FTE, NB-05). This position is needed due to safety
R
$ 26,251
$ -
$ 26,251
Transportation Services
concerns with students on the afternoon buses.
TOTAL GENERAL FUND RECURRING PACKAGES $2,698,798 $ 872,000 $1,985,402
Page 301 of 304
SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT
FISCAL YEAR 2027
Department Description
NON -RECURRING DECISION PACKAGE COSTS
R/N ADDL ADDL Net Tax
City Clerk
Desktop to laptop upgrade for the Administrative Support Professional's
N
$ 300
$ 235
$ 65
computer.
City Manager's Office
Org Culture/EQ Transition Consultant
N
$ 40,000
$ 31,288
$ 8,712
City Manager's Office
Climate Action Coordinator - 1 year extension for the limited -term position. This
N
$103,737
$ -
$103,737
position currently expires in FY26.
Community Impact
Increasing funding for the Neighborhood Association Support grant to help
N
$ 15,000
$ -
$ 15,000
activate and expand Neighborhood Association development. All grant funds are
currently allocated, limiting opportunities to support local initiatives. Request was
submitted as recurring. Recommended as non -recurring.
City Manager's Office
Energy Savers Program - outdated and inefficient heat source and/or water
N
$ 85,000
$ 85,000
heater replacements.
$
Economic Development
Art on the River Artist stipend increase from $1,800 to $2,000. This will will
N
$ 2,200
$
$ 2,200
directly affect the ability of artists to secure materials, resulting in an increased
number of artist participants. Request was submitted as recurring.
Recommended as non -recurring.
Emergency Communications
Communications Training Officer (CTO) program for 4 staff members. This
N
$ 2,200
$ 1,100
$ 1,100
course provides comprehensive training on the roles and responsibilities of CTOs
in running an agency's training program.
Emergency Communications
Quality Assurance Certification for the Director and Lead 911 Public Safety
N
$ 4,883
$ 4,882
Dispatchers. This program will ensure consistent call handling, improve service
accuracy and accountability, helps reduce liability and allows for effective
feedback, reinforces best practices and close performance gaps.Request was
submitted as recurring. Recommended as non -recurring.
$ 9,765
Emergency Communications
911 Surcharge Costs
N
$195,000
$
$195,000
Finance
Safety and Risk Software. Request was submitted as recurring. Recommended
N
$ 20,000
$ 20,000
as non -recurring.
$
Finance
Safety Equipment funding to ensure the City can promptly replace and maintain
N
$ 10,000
$ 10,000
critical safety equipment to protect employees and the public. These funds
enable rapid emergency response and support compliance with safety
regulations identified through safety walkthroughs, audits, or near -miss reports,
primary for needs that may not be budgeted within individual departments.
Request was submitted as recurring. Recommended as non -recurring.
Finance
Safety consulting services to assist the City in expanding and strengthening its
N
$ 25,000
$ 25,000
safety programs, building on current initiatives and implementing procedures
within departments. Request was submitted as recurring. Recommended as non-
recurring.
$
Fire
Fire Department Mental Health Wellness Checks. These annual, confidential
N
$
$ 22,000
sessions with a department -dedicated licensed psychologist experienced in first
responder care help firefighters manage the emotional and psychological
demands of fire and EMS service. Request was submitted as recurring.
Recommended as non -recurring.
$ 22,000
Fire
Purchase of incident command boards to provide incident tracking which outlines
N
$ 1,500
$
$ 1,500
critical tasks, assists with crew resource management, tracks accountability,
timelines, and assists with documenting milestones.
Fire
Purchase items for employee recognition including, awards, events, service pins,
N
$ 5,000
$
$ 5,000
department branded items, etc.
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
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.
Health Services
One-time community education and outreach event focused on responsible pet
N
$ 2,500
$
$ 2,500
ownership. The event will include live demonstrations by professional dog
trainers, public Q&A sessions, and distribution of educational resources.
Health Services
Rabies Vaccination Voucher Program for low-income pet owners within city
N
$
$ 5,000
limits. The program would provide approximately 166 vouchers.
$ 5,000
Health Services
National Environmental Health Association Conference for two staff members.
N
$
$ 5,090
This training covers latest practices, data and research related to environmental
health.
$ 5,090
Health Services
Animal Control Truck Safety Accessories - seat covers, floor mats and a cargo
N
$
$ 1,208
divider to enchance vehicle protection and ensure Animal Control Officer safety
when transporting animals.
$ 1,208
Health Services
Animal Control Postcard Mailing - promotion of new pet licensing software (2
N
$
$ 9,130
year recurring request). Request was submitted as recurring. Recommended as
non -recurring.
$ 9,130
Health Services
National Association of County & City Health Officials Preparedness Summit for
N
$
$ 3,500
the Environmental Sanitarian/ Emergency Preparedness Planner. This
conference presents new research findings, shares tools and resources, and how
to implement model practices to prepare, respond and recover from disasters
and other emergencies. Request was submitted as recurring. Recommended as
non -recurring.
$ 3,500
Page 302 of 304
Department Description R/N ADDL ADDL Net Tax
Expense Revenue Impact
NON -RECURRING DECISION PACKAGE COSTS
Health Services
International Association of Emergency Managers Conference for the
N
$
$ 3,700
Environmental Sanitarian/Public Health Emergency Preparedness Planner.
Request was submitted as recurring. Recommended as non -recurring.
$ 3,700
Health Services
Dale Carnegie Training - Animal Control Officer & Environmental Sanitarian. Dale
N
$ 4,700
$
$ 4,700
Carnegie courses develop and build confidence, personal leadership
competence, strengthen skills in relating to others and build positive relationships
with the public, enhance skills to communicate logically, clearly, and concisely.
Housing & Community Development
Additional funding for building demolitions is necessary to address current and
N
$ 42,500
$
$ 42,500
anticipated demolition needs and to uphold our responsibility to maintain safe
and stable neighborhoods. Request was submitted as recurring. Recommended
as non -recurring.
Human Resources
Contract with a third -party provider to digitize City documents and employee
N
$ 80,000
$ 62,576
$ 17,424
personnel files in coordination with the rollout of the City's new Human Resources
Information System (HRIS). If this is recommended, the temporary office
assistant improvement package request is not needed.
Human Resources
Temporary Office Assistant position (0.50 FTE) to support the City's transition to
N
$ 29,160
$ 22,809
$ 6,351
digitized personnel records. If this is recommended, the improvement package
request for a third -party provider to digitize records is no longer needed.
Human Resources
City of Dubuque shirts for Human Resources staff. Request was submitted as
N
$ 875
$ 684
$ 191
recurring. Recommended as non -recurring.
Human Resources
Society for Human Resource Management Certified Professional (SHRM-CP)
N
$ 1,150
$ 900
$ 250
certification for Human Resources staff. Request was submitted as recurring.
Recommended as non -recurring.
Human Resources
HR Employment Specialist to attend the annual NeoGov conference. Request
N
$ 2,463
$ 1,898
$ 565
was submitted as recurring. Recommended as non -recurring.
Human Resoures
Recruitment services for City Manager position. This package covers
N
$ 50,000
$ 38,530
$ 11,470
comprehensive professional recruitment services, including national outreach and
advertising, stakeholder engagement, candidate screening and evaluation,
background and reference checks, facilitation of finalist interviews, and support
through appointment and contract negotiation.
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
I $ 2,020
$
$ 2,020
Human Rights
Bus Wrap & Social Media Campaign to advertise Human Rights Deparment 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 Request was submitted as recurring.
N
$
$ 1,500
Recommended as non -recurring.
$ 1,500
Information Technology
Training and education for IT staff - classes, conferences, certifications and other
N
$ 28,000
$
$ 28,000
educational needs. Request was submitted as recurring. Recommended as non-
recurring.
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. 100 licenses were purchased and
N
$ 72,000
$
$ 72,000
approved previously, but demand for licenses has far exceeded the initial
purchase. Request was submitted as recurring. Recommended as non -recurring.
Information Technology
5 employees to attend virtual Esri GIS training per year. Request was submitted
N
$ 16,000
$
$ 16,000
as recurring. Recommended as non -recurring.
Information Technology
Additional conference per year for GIS Coordinator. Request was submitted as
N
$ 3,000
$
$ 3,000
recurring. Recommended as non -recurring.
Information Technology
Automated External Defibrillator (AED) for the Information Technology office. This
N
$ 2,700
$
$ 2,700
request includes the AED and all necessary supplies, including the mounting
cabinet, extra battery, and pads.
Information Technology
City Hall 3rd Floor Network Switch Enclosure - adding lockable doors to the
N
$ 2,500
$
$ 2,500
existing network rack.
Information Technology
Fluke Optical Time Domain Reflectometer for testing fiber optic cable
N
$ 29,000
$
$ 29,000
performance. The city has over 100 miles of fiber.
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 Information Technology office. This shared
N
$ 5,000
$
$ 5,000
outdoor space would enhance employee well-being, provide a shaded outdoor
workspace, and support staff engagement.
Parks
ISU Shade Tree Short Course for forestry staff. Request was submitted as
N
$ 1,731
$
$ 1,731
recurring. Recommended as non -recurring.
Planning
Iowa Association of Code Enforcement Officials (IowACE) Conference for the
N
$ 800
$ 559
$ 241
Zoning Enforcement Officer. This conference provides training on the latest code
enforcement practices. Request was submitted as recurring. Recommended as
non -recurring.
Page 303 of 304
Department Description R/N ADDL ADDL Net Tax
Expense Revenue Impact
NON -RECURRING DECISION PACKAGE COSTS
Planning
Additional Planner to attend the National American Planning Association
N
$ 3,000
$ 2,097
$ 903
Conference (APA). The conference provides valuable opportunities for
professional development, exposing attendees to the latest trends, best
practices, and innovative solutions in urban planning. Request was submitted as
recurring. Recommended as non -recurring.
Planning
City of Dubuque shirts for Planning staff. Request was submitted as recurring.
N
$ 420
$ 294
$ 126
Recommended as non -recurring.
Planning
Dale Carnegie training for the Planning Technician. This training helps
N
$ 2,500
$ 1,747
$ 753
participants build confidence, strengthen interpersonal and communication skills,
listen empathetically, enhance leadership abilities, motivate others, and manage
attitudes and stress to perform at their best.
Planning
Desktop to laptop upgrade for Planning Professional Administrative Assistant
N
$ 1,010
$ 706
$ 304
Planning
Upgrade computer to engineering computer for two Assistant Planners.
N
$ 1,200
$ 839
$ 361
Planning
Leadership Dubuque training for Assistant Planner. The program provides an
N
$ 1,570
$ 1,097
$ 473
opportunity to learn about local community resources, government, businesses,
education, and economic development while strengthening leadership skills,
exchanging ideas, building relationships with leaders, and expanding
professional networks.
Planning
Safe Routes to School Bike Gear. The accessories to be purchased include 24
N
$ 563
$
$ 563
bike helmets and 20 bike locks.
Police
Mental health wellness checks for each officer. Wellness checks entail an annual
N
$ 11,400
$
$ 11,400
confidential visit with a licensed psychologist experienced with first responders
and occupational resilience. Request was submitted as recurring. Recommended
as non -recurring.
Police
Non -Profit Special Event Volunteers
N
$ 5,000
$
$ 5,000
Police
Professional Development funds to allow up to 25 officers per year for
N
$ 40,000
$
$ 40,000
professional development training. Request was submitted as recurring.
Recommended as non -recurring.
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
$ 9,600
$
$ 9,600
Sanitary Sewer, Road Use Tax and General Fund). Request was submitted as
recurring. Recommended as non -recurring.
Public Works
Employee recognition including City swag, additional leave time, meals, etc.
N
$ 1,500
$
$ 1,500
Request was submitted as recurring. Recommended as non -recurring.
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.
Request was submitted as recurring. Recommended as non -recurring.
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. There is currently one fryer, however, to
N
$ 1,600
$
$ 1,600
expand menu options, an additional fryer would be needed.
TOTAL GENERAL FUND NON -RECURRING PACKAGES 1,135,709 152,242 883.467
Page 304 of 304
THE CITY OF
k -N
Masterpiece on the Mississippi
Public Hearing on
Proposed Fiscal Year 2027
Property Tax Levy
March 23, 2026
1
Proposed Property Tax Rate
a
I
Tax Rate 1 $10.0637
Property $29.9
Tax Asking million
Residential (Avg. $889.20
Value = $213,211)
I
$10.1648
$32.0
million
$915.88
THE COF
DtUB E
Masterpiece on the Mississippi
1% I $0.10
$2.1
6.93%
million
$26.88 I +3%
2
Proposed Property Tax Levy:
Commercial
THE COF
DtUB E
Masterpiece on the Mississippi
Property Type
Properties
Properties
•
Property Tax
Property Tax
'if ob
Change
Change
a
Payment
AL
Payment
&
Commercial:
433
381
$716.01
�M
$679.03
-$36.98
-5.2%
$150,000 value and below
Commercial:
232
225
$23074.61
$2,051.28
-$23.33
-1.1 %
$150,001-$300,000 value
Commercial:
147
167
$33433.21
$3,423.53
-$9.38
-0.3%
$300,001-$450,000
Commercial:
588
636
$4,253.76
$5,023.83
+$770.07
+18.1 %
Avg. Value = $624,927
3
Proposed Property Tax Levy:
Industrial
THE COF
DtUB E
Masterpiece on the Mississippi
Prc
IProperty Type
Properties
Properties
Property Tax
Property Tax
Change
Change
�Mk
Payment
Payment
Ad&L
Industrial:
$150,000 value and below
8
8
$716.01
$679.03
-$36.98
-5.2%
Industrial:
$150,0014300,000 value
11
9
$23074.61
$23051.29
-$23.33
-1.1 %
Industrial:
$300,001-$450,000 value
4
3
$33433.21
$3,423.53
-$9.69
-0.3%
Industrial:
Avg. Value = $7313693
58
58
$53090.27
$69000.56
+$910.29
+17.9%
N
City Property Tax Rate
Comparison
$15.39 $15.43 $15.60
$11.77
$10.16 $10.27 $10.53
THE COF
DtUB E
Masterpiece on the Mississippi
$16.58 $16.66 $17.56 $17.69
$21.79
Dubuque Ames Ankeny West Des AVERAGE Iowa City Sioux CityDavenport
Cedar
Des
Council Waterloo
(FY27) (FY27) (FY26)* Moines w/o (FY27) (FY27) (FY27)
Rapids
Moines
Bluffs (FY26)
(FY26)* Dubuque
(FY27)
(FY26)*
(FY26)
Waterloo = 114% higher than Dubuque Average = 53% higher than Dubuque
0
Average Annual Increase.
1989=2026
THE COF
DtUB E
Masterpiece on the Mississippi
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 COF
DtUB E
Masterpiece on the Mississippi
Significant Issues
Impacting Budget
N
• re
FY 2003 H F 683
P
ai
Legisiative
in
Revenues
Machinery & Im
Equipment
Tax Replacement
State of Iowa eliminated the Machinery & Equipment Tax Replacement
which provided replacement payments to local governments for
machinery and equipment being removed or reduced from the
property tax base (-$200K)
2003 Iowa Acts, Personal Property Tax State of Iowa repealed the Personal Property Tax Replacement fund (-
Chapter 178 Replacement $350K) effective 2004. Iowa had largely eliminated taxation of most
business personal property. To offset that loss, the state paid
replacement dollars to cities and counties through the 427A
replacement fund.
2003 Iowa Acts, Municipal Assistance State of Iowa eliminated Municipal Assistance (-$300K) effective 2004.
Chapter 178 A state -funded payment to cities, distributed
on a per -capita basis. Intended to provide general, flexible revenue
support, not tied to a specific service.
nricai Leaisiative p►ctic
3actina Havenuc
2003 Iowa Acts, Liquor Sales State of Iowa eliminated Liquor Sales revenue with Cities (-$250k) effective
Chapter 178 Revenue 2004. Before 2003, cities received a share of state -collected alcohol related
revenue commonly referred to as liquor profits/liquor sales distributions. Tied
to the State's control of wholesale liquor through the Iowa Alcoholic Beverage
Division. Modestly tied to consumption, but effectively general-purpose
funding for cities. The state kept the liquor money instead of passing a portion
onto cities.
2003 Iowa Acts, Bank Franchise State of Iowa eliminated Bank Franchise Tax (-$145k) effective 2004. This
Chapter 178 Tax was a tax on financial institutions administered by the state. Historically, a
portion of revenues was distributed to local governments, including cities.
Functioned as a state -collected, locally -shared revenue source.
•
• r.
2013 SF 295
Property Tax
Changes and
Income
Tax Credit Act
6/ 16/21 SF
619
2022 Senate
File
2374
ai Leaisiative p►ctia
ni HP.vP.ntjr-,
Revenue Impacted -Erl, "I, M1W, W W -MqW
Business Property FY15-FY23 Business property tax credit for commercial,
Tax industrial, and railroad properties. BPTC is issued against the
Credit tax statements of business property (Commercial/Industrial
classes), similar to Homestead Credits which can be
applied to residential property. For business landowners who
apply for this credit, the property taxes for the year are
reduced.
Property Tax Effective 7/1/22. Phases out State backfill on on commercial
Legislation and industrial property tax replacement for cities and
counties over 7 years from 2023-2030. By 2030 the loss of
backfill from the State is $1.3 million.
Alcohol License State of Iowa eliminated city share of alcohol license revenue
Revenue (-$85K) effective January 1, 2023. The legislation
overhauled the licensing structure, removing the requirement
that fees be shared with the local authority that issued
the license.
Lost Revenue fro Multi -
Residential
2013 Property Tax Reform SF618
THE COF
DtUB E
Masterpiece on the Mississippi
• Reduced taxable value of commercial/industrial property
to 90%
• Added multi -residential rollback reductions over time,
eventually reaching residential rollback amount. Backfill
by State capped at FY1 7 levels. By FY24, annual
revenue loss was $1.2 million for multi -residential.
• From FY1 7 through FY27, it is estimated the City will
have lost approximately $9.2 million.
11
nricai Leaisiative p►ctic
3actina Havenuc
Keve
6/2/22 HF Division 11 Repealed Business Property Tax Credit. Beginning is FY24, a
2552 dual rollback was created for commercial, industrial, and
railroad properties, which would provide a property
assessment limitation on the first $150,000 of value of the
property unit equal to the assessment limitation for residential
property.
HF 718 2023 Property Tax Consolidated city -levies into a single general fund system.
Overhaul Hard cap on city general fund levy $8.10. Eliminated many
exceptions that allowed cities to exceed caps. Imposed tighter
controls on levy growth.
THE CITY OF
Greater Downtown Tax Increment DtUB E
Financing (GDTIF) Masterpiccc °° the Mississippi
• $5.3 million in internal loans repaid to GDTIF in FY27 with $1.2
million for property tax relief with remaining $4.1 million split
between $974,917 for non -recurring improvement packages, an
internal loan to the refuse collection fund for $675,554, and $2.4
million in reserves for FY28 budget in preparation for property
tax reform.
• In FY28 and Beyond, GDTIF will begin collecting
revenues with remaining 25% returned to taxing
including $1.2 million to the City of Dubuque.
75% of
bodies,
• As a result, beginning in FY28, the GDTIF District will have $3.4
million less each year for programs and projects.
13
State -Funded Backfill on Dus ` E
Masterpiccc on the Mississippi
Commercial & Industrial Property Tax
• 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
$17030000
14
Gaming Revenue
THE CITY OF
DUB E
Masterpiece on the Mississippi
•DRA lease payments estimated to
decrease $134,176 from $7,213,362 in
FY26 to $7,079,186 in FY27
15
Into
THE COF
DtUB E
Masterpiece on the Mississippi
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.
16
Local OptionD Sales uB " E
Tax Pevenup Masterpiccc
*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 rem
estimated FY26 receipts.
50% to property tax relief, 50% to capital
improvements (20% for maintenance of City
buildings and 30% for street maintenance)
17
Hotel/Motel Tay
Revenue
THE CITY OF
DUB E
Masterpiece on the Mississippi
•Hotel/Motel Tax decreasing from $3.9
million in FY26 to $3.5 million in
FY270
•The FY27 budget is based on re -
estimated FY26 receipts.
m
Roiverfront Property
Lease Revenue
THE CITY OF
DUB E
Masterpiece on the Mississippi
*Projected to increase by $101,268 in
FY27 to $4,374,313 due to the
estimated consumer price index
increase
19
Franchise Fi
Re%/anue
*Franchise fees (Gas & Electric)
estimated to increase from $6.1
in FY26 to $7.1 million in FY27.
THE CITY OF
DUB E
Masterpiece on the Mississippi
are
million
• FY27 budget is based on re -estimated
FY26 receipts.
20
rnbulance Revenue -
THE COF
DtUB E
Masterpiece on the Mississippi
*Ambulance Fees increased from
$1,756,870 in FY26 to $2,778,351 in FY27
•Council approved advanced life su
and basic life support service fees
match the third -party cost report.
pport
to
21
THE CF
DUtB�-
E
rnbulq,nce Reluenue Masterpiece on the Mississippi
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.
In FY2022, authorized strength of the Fire Dept. was 92-16
FTE (sworn and civilian positions)
In FY2026 (now), it is 109-16, an 18.5% increase
Nine more positions in FY2027 would be a 28% increase
(26FTE) in staffing since FY2022.
22
City Contribution to
Municipal Fire and Police
Retirement System
THE CITY OF
DUB E
Masterpiece on the Mississippi
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) M
23
Wz_ AM,= e-
-41creasF
THE COF
DtUB E
Masterpiece on the Mississippi
• 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.
24
THE COF
DtUB E
Masterpiece on the Mississippi
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.
• Employee pre
1, 20270
Health Insurarr 10
miums will increase 5%, effective Jan.
25
Trapir
THE COF
DtUB E
Masterpiece on the Mississippi
• 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).
w
mooe
Rating
THE COF
DtUB E
Masterpiece on the Mississippi
In July, 2023, Moody's Investor Services upgraded
the City's credit rating from Aa3 to Aa2.
In January, 2025, Moody's Investor Services affirmed
the Aa2 credit rating on general obligation bonds.
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.
27
General Fund Reserve
Projections
THE CITY OF
DUB E
Masterpiece on the Mississippi
The General Fund Reserve (27%) is $24.6
million in Fiscal Year 2026.
Recommended A,pproval
THE CITY OF
DUB E
Masterpiece on the Mississippi
The recommended resolution for
maximum property tax dollars in FY2027
is $31,940,934 (tax rate of $10-1648)
or a 6.93% increase over FY2026 property
tax dollars.
29
Impact on Reve
U4
THE COF
DtUB E
Masterpiece on the Mississippi
Change in Avg. 1W
Increase in Tax
-W
Decrease in Tax
Residential City
Revenue from
Revenue from 3%
Tax Payment
Fiscal Year 2026
No Increase
$131443004
$9243677
1%Increase
$134533605
$615,076
2% Increase
$137633207
$3053474
3% Increase
$230683681
Current recommendation is a 3% increase to the average homeowner, which
generates $2. 1 million in additional property tax revenue over Fiscal Year
2026. Each 1 % reduction is approximately $300,000 in property tax revenue.
W
FY2027 Budget P-,jblic Input Du's ` E
opportunitiesMasterpiccc on the Mississippi
• 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.citvofdubuque.orq/FY2027budget
• Contact City
Council: www.citvofdubuque.orq/councilcontacts
31