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Fiscal Year 2027 Budget Recommendation Copyrighted April 6, 2026 City of Dubuque ACTION ITEMS # 10. City Council ITEM TITLE: Fiscal Year 2027 Budget Recommendation SUMMARY: City Manager presenting the recommended Fiscal Year 2027 Budget. *Presentation will be available on Apri16. SUGGUESTED Receive and File; Presentation DISPOSITION: ATTACHMENTS: 1. Revised City Manager Budget Message FY2027 - Uploaded 4.3.26 2. Presentation - Uploaded 4.6.25 3. FY2027 City Manager Capital Improvement Program Message - Uploaded 4.3.26 4. Resident's Guide 2027 - Uploaded 4.3.26 5. Dubuque CIP FY 2027- Uploaded 4.3.26 6. MVM Memo Fiscal Year 2027 Recommended Budget Page 1386 of 2358 Budget Message Dubuque THE CITY OF � All•America Ciiy U B E �,��K��,�� , � � ► Maste iece on the Mississi i Zoo�.Zolzizo13 �p pp zoi��2oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2027 Recommended Budget DATE: April 3, 2026 The strong foundation of this budget recommendation is the Mayor and City Council Goals and Priorities adopted in September, 2025: FIVE-YEAR GOALS — • Haolthy o�d Sofe Community ■ finantially Responsible. High-Pe�formante City Orgonizotion: Susiok�obl8,Equltabls,Ond EtteCLNe Serv�Ca OeNv�ery • Robust local Economy: O�re�'se 9u�k�esses ond Jobs wkh Eo�nomiC ProsP�kY . livable Neighborhoods and Housing: c3rea vaoe to u�re ■ Sustainable Environment: Preserviny and EMonchg Noturd Resources • Connected Community: Equltobi9 TtcnspOrtotlOrL teCM�Obgy Inhcstruaure.and Mob�Ry • Diversa Arts.Cufture,Po�ks,and Recreation Experiancos and Activitias 20 Page 1387 of 2358 Budget Message 2025-2027 Priorities: Top Priorities (r�� alphnbetrca! order) ■ Commercial Air Service Future: Strategy and Action Plan to Sustain and Expand ■ Comprehensive Fire Station Location and Facilities Study ■ Fire Department Staffing Increases ■ Police Department: Full Staffing and Hiring ■ Sanitary Sewer Investments and Implementation • Catfish Creek Sanitary Sewer Project • Cedar Street Lift Station and Force Main • Chaplain Schmitt Island Sanitary Sewer • Cooper Placef Maiden Lane Project • Grove Terrace Project • Harvard Street Project • Hempstead Street Project • Sanitary Sewer Force Main Stabilization Project • Sanitary Sewer Consent Decree Compliance • Terminal Street Lift Station and Force Main • Other Projects ■ Sports Complex Development ■ Stormwater Management Investments and Implementation: • 17th and Elm Street Stormwater Project • 17th and Locust Street Stormwater Project • Bee Branch Gate& Pump Station Project • Detention Ponds Maintenance • Individual Neighborhood Investments • Kaufmann Avenue Storm Sewer Improvements ■ Street Maintenancef Rehabilitation Program High Priorities (in alphabericol order) ■ Continued Implementation of Central Avenue Revitalization Plan ■ Downtown Master Plan Update ■ Dubuque Law Enforcement Center (DLEC) Short- Term Facility Enhancements and Future Plan ■ East-West Corridor/Roundabouts Projects ■ Next Phases of Chaplain Schmitt Island Development ■ Parks and Recreation Master Plan Adoption and Implementation ■ Water Resource and Recovery Center Facility and Process Improvements and Odor Reduction 21 Page 1388 of 2358 Budget Message The theme for the Fiscal Year 2027 budget recommendation is a comprehensive, future-focused investment in Dubuque's core infrastructure and community assets — prioritizing safety, streets, and access to quality services. The budget aims to ensure that Dubuque remains a safe, healthy, and vibrant place while preparing for growth and evolving community needs. For Fiscal Year 2027 I respectfully recommend 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. 1 . . . . - . ' � • - . - 1 Property Tax Rate $10.0637 $10.1648 1.00% $0.10 Property Tax Asking $29,872,253 $31,940,934 6.93% $2,068,681 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 this recommendation the City of Dubuque would still have the lowest property tax rate of the eleven cities in the State of lowa with a population over 50,000. 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. I asked city assessor Troy Patzner for some information about the assessed value of residential properties in the North End. He responded as follows: "The below data shows the percentage change of value on residential from three different revaluation cycles, 2015, 2021, and 2025. I had the north end neighborhoods separated from the rest of the City. It looks like in 2015 the north end hardly changed at +.3%, as compared to the rest of the city which went up 3.14% as compared to ten years later when they increased slightly more than the rest of the city neighborhoods at 9.66%." Assessed Value Changes . . . � - � � � � � - � � . - . - . - North End +9.66 % +9.48 % +0.30 % Rest of City +8.98 % +10.25 % +3.14 % 22 Page 1389 of 2358 Budget Message Some of the increase in assessed value in the North End can be attributed to the fact that the city and others have been investing hundreds of millions of dollars in the North End. Some significant examples include the $250 million invested in the Bee Branch Creek Watershed Flood Mitigation Project, millions of dollars into Comiskey Park, a new roundabout at Kerper Boulevard and Kerper Court, new sanitary sewers on Kerper Boulevard, millions of dollars into Crescent Community Health Center, $80 million in Chaplin Schmidt Island, soon to be almost $50 million in the 14th St. Railroad Overpass and Elm Street and 16th Street complete streets. The city also had financial assistance programs to help those who had experienced flooding replace furnaces, water heaters, and repair homes. All of this has led to the homes increasing in value, which means one of the most valuable assets a resident possesses is becoming more valuable. For FY2027 there are $2,968,870 in general fund improvement package requests. This budget recommendation includes $597,760 for recurring improvement packages and $1,120,636 for non-recurring improvement packages. The non-recurring improvement packages are funded by Inflation Reduction Act rebate in the amount of $188,737 for the Climate Action Coordinator and the energy savers program, and $931,899 of non-recurring improvement packages are funded from the $5.3 million in internal loan repayments from the Greater powntown TIF and Dubuque Industrial Center TIF Districts. The additional nine firefighters recommended are funded by a Federal SAFER grant and previously approved ambulance fee increases. The remaining $349,684 in recommended recurring improvement packages are funded by a portion of the 25% of Greater powntown TIF District that will be returned to taxing bodies in Fiscal Year 2028 and beyond. If the City Council does not approve claiming only 75% of the Downtown TIF revenues beginning in Fiscal Year 2028 we will need to eliminate all but the 9 new Firefighters from the recurring improvement packages and cut $702,793 from the Fiscal Year 2027 general fund operating budget. 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 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. . . - . - . . . . - . . - . . - . . - . - . - Residential: $889.20 $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 23 Page 1390 of 2358 Budget Message . . - . - . . . . - . . - . . - . . - . - . - Industrial: $716.01 $679.03 -$36.98 -5.2 % $150,000 value & below 8 8 Industrial: $2,074.61 $2,051.27 -$23.34 -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 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 programs that provide grants to outside agencies. In the March 23, 2026, property tax public hearing interest was expressed in lowering the property tax increase. In Fiscal Year 2027 we face many special opportunities and challenges. I ask that we not add to the challenges side of this equation, potentially squandering the opportunities, by using one-time revenues, to pay for recurring expenses. Doing this without a long-term funding plan only digs a budget hole to dig out of in future budget years. It creates a future self-inflicted budget crisis. Using general fund reserves to pay for recurring expenses is one of the way that using one-time revenues to pay for recurring expenses is a poor financial planning strategy. I respect the right of the Mayor and City Council to reduce budget expenditures to reduce the recommended property tax levy. I just ask that those reductions be recurring general fund expenditures. What needs to be ever present in our minds is that the State of lowa elected leaders have made it clear that they intend to enact property tax reform legislation that will negatively affect the Fiscal Year 2028 (beginning July 1, 2027) local government budgets. We do not want to do anything in Fiscal Year 2027 that will create additional funding issues in Fiscal Year 2028. 24 Page 1391 of 2358 Budget Message I am recommending increases in the Enterprise Funds as follows: Enterprise Fund Utility Rates � . . . - . � � , . Water* $22.50 $23.17 3 % Sanitar Sewer $31.84 $34.73 9 % Curbside Collection $18.11 $19.74 9 % Stormwater $11.03 $12.02 9 % *3,200 gallons per month is the average residential user with a 5/8 inch water meter. One important point is that low-income customers receive a 50% discount on their base city utility rates. During Fiscal Year 2026 the position of Economic Mobility and Neighborhood Support Director became vacant when Anderson Sainci was promoted to the Director of Strategic Partnership position. The Economic Mobility and Neighborhood Support Department was evaluated. I have eliminated the position of Economic Mobility and Neighborhood Support Director. I have also eliminated the Department of Economic Mobility and Neighborhood Support, while ensuring those important responsibilities are still being carried out. The Department of Economic Mobility and Neighborhood Support Administrative Support Professional also provided support to the Information Technology Department and to the Human Rights Department. The position has been transferred to the Information Technology Department and will continue to provide support to the Information Technology Department and the Human Rights Department. The Administrative Support Professional also now provides support to the 911 Emergency Communications Department. The Department of Economic Mobility and Neighborhood Support Community Engagement Coordinator Temwa Phiri responsible for neighborhood support has been transferred to the Community Impact Department. That department will now be called the Community Impact and Neighborhood Support Department. The Department of Economic Mobility and Neighborhood Support grant funded position of Economic Mobility Special Assistant, held by Corrine Rothblum, has also been transferred to the Community Impact and Neighborhood Support Department. I am recommending that beginning in Fiscal Year 2028 the city begin claiming only 75% of the Downtown TIF District revenues. From the unclaimed 25% taxing bodies would begin receiving on an annual basis the following: 25 Page 1392 of 2358 Budget Message � . . . . .. -. : � .. . • :�• - - Dubuque Community School District 37.75 % $1,284,104 City of Dubuque 36.26 % $1,233,420 Dubuque County 19.96 % $678,959 Northeast lowa Community College 2.75 % $93,544 Sunnycrest Manor County Hospital 1.89 % $64,290 Dubuque Agricultural Extension 0.41 % $13,947 Dubuque City Assessor 0.98 % $33,336 Total 100.00 % $3,401,600 In Fiscal Year 2027 the Downtown Urban Renewal TIF District would repay to the City of Dubuque internal loans in the amount of $5,060,682 and Dubuque Industrial Center TIF District would repay internal loans in the amount of $332,307 for a total of $5,392,989. These funds would be used as follows: Fiscal Year 2027 general fund operating expenses - $1,808,693 Fiscal Year 2027 general fund non-recurring improvement packages - $929,712 Fiscal year 2027-2030 internal loans to Refuse Collections Fund - $587,638 Fiscal year 2027 internal loans to Garage Service Fund - $180,693 The remaining $1.9 million would be held in reserve in case needed to help transition the city budget in Fiscal Year 2028 from any Fiscal Year 2028 State of lowa property tax reform legislation. If the City Council chooses to not add to the City reserves to be prepared for Fiscal Year 2028 State of lowa Property Tax Reform, I would ask that any use of these funds be for non-recurring expenses. The reduction in Downtown TIF revenues beginning in Fiscal Year 2028 by only claiming 75% is: � � . . . • 2027 $13,524,219 $— —% 2028 $10,162,871 -$3,361,348 -24.85% 2029 $10,137,372 -$3,386,847 -33.33% 2030 $10,111,873 -$3,412,346 -33.66% 2031 $10,111,873 -$3,412,346 -33.75% Even with the reduction in revenues available to the Downtown TIF District, the budget recommendation was able to increase funding for the Central/White Street Corridor Project, maintain funding for the 14th Street Railroad Overpass Project and create a new program to assist with filling up vacant downtown commercial spaces. Unfortunately, there did need to be some project funding reductions like for Five Flags and for developer incentives. 26 Page 1393 of 2358 Budget Message Project Funding • . - 1 . 1 1 1 . 1 . - Five Flags Renovation $23,464,000 $7,055,088 -$16,408,912 Downtown Rehab Grant Program $5,500,000 $5,504,390 $4,390 Downtown Storefront Retention Program $— $400,000 $400,000 Central/White Street $8,170,000 $11,170,000 $3,000,000 14th Street Overpass $39,351,910 $51,183,326 $11,831,416 East-West Corridor $1,240,275 $6,000,321 $4,760,046 Total $77,726,185 $81,313,125 $3,586,940 General Obligation (GO) debt is an important part of the Fiscal Year 2027 budget recommendation: New General Obligation Debt • . . . . � - • 1 1 : 1 ' 1 1 1 • . New G.O. Debt $12,991,499 $16,756,114 $15,288,879 $16,520,648 $15,114,208 $76,671,348 Much of this General Obligation debt is Essential Corporate Purpose debt and can be issued by a vote of the City Council. Some of this debt can be issued by a vote of the City Council, but is subject to a reverse referendum where residents can circulate a petition and then a referendum vote is required. Some of the G.O. debt would be recommended as a voter referendum. There are many decisions to be made over the next few years on major projects that will require debt that the scope, scale, and cost of the project are not known at this time. The most significant item that is in this category is the implementation of the Parks and Recreation Master Plan that was recently adopted by the Mayor and City Council. The Aquatics Center feasibility study has already begun, and other studies are recommended to begin with approval of this budget. Some of these capital projects will require a voter referendum. Following is a list of voter referendums in Dubuque County since 1979: 27 Page 1394 of 2358 Budget Message : . . 1979 Courthouse bond and addition failed 1979 NICC Levy failed 1980 NICC Levy passed 1982 DUBUQUE-TAX LEVY FOR PARK ON CITY passed ISLAND 1984 City Bond Dog Racing passed 1984 NICC Levy passed 1985 Dubuque Band Levy failed 1986 DBQ school tax levy passed 1986 LOST & Service Tax failed 1987 Wheel Tax failed 1988 Local sales and service passed 1988 E991 passed 1988 WD Bond failed 1989 Dubuque Pool passed 1989 GAMBLING passed 1989 WD Bond failed 1990 WD Bond failed 1990 Dubuque School Instructional support levy failed 1991 WD Bond passed 1991 DBQ Hotel tax passed 1992 DBQ Golf Bond failed 1993 DBQ Library tax failed 1993 DBQ Gas Company passed 1993 Interstate Power Company passed 1994 DBQ school tax levy passed 1994 NICC Levy passed 1994 Gambling Boat passed 1994 E911 surcharge passed 1995 DBQ school tax levy failed 1996 DBQ School renewal of physical plant levy passed 1997 NICC Levy failed 1997 DCSD Support Levy failed 1998 NICC Levy passed 1999 LOST & Service Tax failed 2000 County Jail Bond passed 2000 WD Bond failed 2000 WD Levy and Bond failed 2000 $4 million City/County Jail Expansion passed 2003 Baseball Stadium failed 2005 Establish Municipal Utility passed 2022 County Conservation Measure failed 2023 School Board - Public Measure failed 2025 School Board - Public Measure HB failed 28 Page 1395 of 2358 Budget Message The City is also using the lowa Finance Authority State Revolving Loan Fund (SRF) low interest debt program for sewer and water projects. A recent report from McKinsey and Company talks about the current State of potable water and sanitary sewer water infrastructure. The report says "As critical water infrastructure ages, maintenance expenditures go up." The report further says, "...our research shows the U.S. water utility sector faced an estimated $110 billion annual funding gap in 2024, primarily driven by significant investments in aging infrastructure, operating expenses, and water-quality regulations. By 2030, this gap could increase to approximately $194 billion." In 2025 the American Society for Civil Engineers issued a report title, "A comprehensive Assessment of American's Infrastructure." They issued a national report card: Drinking Water "C-": Funding gap = $309 billion Public Parks "C-": Funding gap = $44 billion Solid Waste "C+": Funding gap = $16 billion Transit "D": Funding gap = $152 billion Stormwater "D"/ Wastewater "D+" (including sanitary sewer): Combined funding gap=$690 billion Nationally, as the City of Dubuque faces locally, the biggest funding challenges are in wastewater and stormwater. While there are several major capital improvement projects in this budget recommendation, some that have already been mentioned, the Catfish Creek sanitary sewer projects, the stormwater projects on 17th/Locust Street, the 14th Street railroad overpass, and the digging of a new deep well for the water department are some of the largest. If the City Council feels the projected stormwater rate increase needs to be lowered, we could look at delaying some stormwater projects as we pursue federal grant funding opportunities. The City's top priority in operating the Water & Resource Recovery Center is to consistently meet its permit requirements and protect the environment and public health. At the same time, wastewater collection and treatment systems will inherently generate some level of odor. Organic material begins to decompose in the sewer system before it reaches the facility, and the biological processes used to remove pollutants naturally produce gases that can at times be detected offsite. Odor conditions can also fluctuate due to weather patterns, the characteristics of incoming wastewater, and normal variations in treatment system performance. While odors cannot be fully eliminated, the City is committed to minimizing their frequency, intensity, and duration through a comprehensive, multi-faceted approach. That approach focuses on controlling odor at its source through targeted chemical dosing, improving the reliability of treatment infrastructure, enhancing operational practices and data- driven decision-making, and advancing long-term planning. The following outlines the actions the City has already taken and the additional investments proposed in FY27 to continue reducing odor impacts while maintaining reliable treatment perFormance. 29 Page 1396 of 2358 Budget Message The City has implemented targeted chemical dosing strategies to directly reduce odor-causing compounds within the treatment process. Hydrogen peroxide dosing at the primary clarifiers is achieving approximately a 50 percent reduction in hydrogen sulfide, with limited additional benefit observed at higher doses. In parallel, ferric chloride dosing within the anaerobic digesters has reduced hydrogen sulfide concentrations from approximately 13,000 ppm to as low as 490 ppm, over a 90% reduction, and decreased struvite formation potential from approximately 330 pounds per day to around 40 pounds per day, again approaching a 90% reduction. Dosing is currently at approximately 140 gallons per day and is being incrementally increased toward an optimal range of 160 to 200 gallons per day. The goal is to have zero struvite formation. The City has budgeted approximately $460,000 annually for this program and is continuing to evaluate more cost-effective upstream dosing opportunities, including hydrogen peroxide application prior to digestion and at the Terminal Street Lift Station, to further reduce hydrogen sulfide loading to the facility. Improving equipment and system reliability remains a central focus, as many odor issues are tied to treatment systems not operating as designed. A key example is the activated sludge system, where challenges have contributed to elevated hydrogen sulfide emissions since last fall. Current efforts are focused on restoring all mixers to full operation and preparing to clean the worst-perForming of the three treatment trains to stabilize process perFormance. Building on this work, the Fiscal Year 2027 budget includes an improvement package to clean all three activated sludge trains over a three-year period, with funding of $42,500 annually to complete one train each year. This planned approach is intended to increase treatment efficiency, improve oxygen transfer, and reduce conditions that contribute to odor formation. The City is also advancing a proactive approach to digester management, with Fiscal Year 2026 funding supporting the cleaning of Digester #4 in June 2026. The Fiscal Year 2027 budget establishes annual funding to clean one digester each year. Routine cleaning, combined with ongoing chemical control, is expected to reduce future costs while improving perFormance and minimizing odor potential. The Fiscal Year 2027 budget also includes targeted investments to further improve system reliability and reduce the risk of odor-generating conditions. This includes $1,380,000 to improve overall system resiliency. These funds will allow the City to restore redundant systems and to maintain an inventory of critical spare parts to avoid extended outages caused by long procurement times. In addition, the budget includes $135,000 for process control monitoring improvements—specifically dissolved oxygen monitoring within the activated sludge system—to provide real-time visibility into system performance and support timely operational adjustments. The budget also includes $40,000 for real-time influent monitoring to better detect and respond to changes in incoming wastewater that could interfere with treatment processes. Together, these investments strengthen the City's ability to proactively manage the treatment system and reduce the likelihood of process upsets that contribute to odors. 30 Page 1397 of 2358 Budget Message The City is also advancing a comprehensive Facility Plan update that will guide how the WRRC meets community needs over the next two decades, with odor mitigation incorporated as a key consideration in evaluating future treatment and infrastructure options. In addition to long-term planning, this effort includes a focused evaluation of existing systems to ensure they are operating as intended and that operators have the knowledge and tools needed to effectively manage the treatment process. This includes enhanced training, improved process control strategies, and the development of data dashboards to better understand system performance in real time. In parallel, the City has transitioned from paper-based records to digital systems and is expanding its use of software integrated with SCADA data. SCADA (Supervisory Control and Data Acquisition) is a computer-based system that allows operators to monitor, control, and respond to equipment and processes in real time—helping ensure systems like the wastewater treatment plant running safely and efficiently. These efforts are strengthening data-driven decision-making and improving the City's ability to proactively identify and respond to conditions that could contribute to odor events. In addition, the City is making a significant investment in modernizing electrical controls across the WRRC through a $7.2 million program designed to enhance system reliability and operational performance. Phase 1 is already underway, with approximately $2.36 million under contract to replace motor control centers—the "brains" of the facility—in two of the seven process control buildings. The FY27-31 budget continues this progress by funding upgrades to the remaining buildings, positioning the WRRC with a strong, modern control foundation that supports consistent operations and long-term service to the community. The City is also advancing the Hauled High Strength Waste Improvements Project, an $8.1 million investment that will strengthen how hauled waste is received and integrated into the treatment process. This project will provide dedicated infrastructure and controls to ensure these waste streams are introduced in a manner that supports stable, effective operation of the anaerobic digesters as they were designed to function. The project is fully funded through hauled waste user fees and a federal grant, aligning system improvements directly with the users of the service while enhancing overall treatment reliability and performance. Together, these efforts, supported by the Fiscal Year 2027 budget, position the City to respond to odor challenges in the short term while proactively managing and reducing them over the long term, all while maintaining reliable, compliant treatment operations. An important part of this budget relates to the requirement from the U.S. Environmental Protection Agency (EPA). Within 10 years all private lead water service laterals must be replaced. The total cost of a project of this magnitude exceeds $60 million for almost 4,000 total private water service laterals. It is proposed for the next 5 years the city offer help with financing and implementation for property owners who volunteer to have their lateral replaced. After that 5 year period the city would need to implement a mandatory program to meet the EPA compliance deadlines. The city would assist with financing by accessing low interest long-term borrowing through the SRF program. Property owners would be assessed to make the payments. Since the lead service laterals cause no issues because the city treats the water to prevent lead leaching into the water the city will continue to advocate to the federal government to eliminate the 10 year requirement. 31 Page 1398 of 2358 Budget Message The City Council at their December 1, 2025, meeting approved adding five Firefighter/Paramedic positions in the current fiscal year (FY 2026). The authorized strength of the Dubuque Fire Department, including civilian and sworn positions, was 92.16 FTE in FY 2022 and is 109.16 FTE as of FY 2026, an 18.5% (17 FTE) increase in staffing over that four-year period. The addition of nine additional positions in FY 2027 will make it a 28% (26 FTE) increase in staffing since Fiscal Year 2022. The city will apply for a SAFER grant later this calendar year when the application process opens, then it is expected it would be several months before the city would learn of the results of the application. The results could be that all nine of the positions receive SAFER grant funding, some of the positions receive grant funding, or none of the positions receive grant funding. Based on Fire Chief Amy Scheller's experience in the SAFER grant process she believes Dubuque will have a very competitive application. If the city does not receive the SAFER grant in calendar year 2026 (FY 2027) to help with funding the nine new Firefighter/Paramedic positions the City Council has the options of reapplying for the SAFER grant in calendar year 2027 (FY 2028), phasing implementation of the nine new Firefighter/Paramedic positions (since the Fire Department has three 24 hour shifts that would most likely be three positions a year, one on each shift, for three years, leaving open the option to apply for a SAFER grant in future years for the positions not added in the first and/or second year), or decide to modify the funding plan to maintain the hiring schedule through a mid-fiscal year amendment of the FY 2027 city budget, which would take an evaluation of other approved general fund expenses. I am sure there are other options that could be explored. The Parks and Recreation Master Plan identifies the need for seven additional positions to fully support its implementation. While adding all seven positions was not financially feasible in Fiscal Year 2027, the budget recommends moving forward with two park maintenance technician positions at this time. These technicians would take responsibility for comprehensive park maintenance across the system. Including the position added for Eagle Point Park in the current fiscal year, this brings the total to three new park maintenance positions within a two-year period—demonstrating continued progress toward meeting the maintenance and service goals outlined in the Master Plan. In Dubuque Public Safety is a Citywide Commitment. Public safety in Dubuque is not the work of one department or a single set of responders. It is a shared responsibility woven into the daily operations of every service area across the City. From infrastructure and clean water to communications, planning, and community engagement, each department plays a crucial role in creating a safe, resilient, and thriving Dubuque. Together, their efforts demonstrate that safety is not only about reacting to emergencies—it is about preventing them, preparing for them, and creating the conditions that allow people to live their lives with confidence, stability, and trust. 32 Page 1399 of 2358 Budget Message Safety in the Air, on the Ground, and Throughout Daily Life At the Dubuque Regional Airport, safety begins long before a plane takes off or lands. Staff complete rigorous daily inspections, manage weather and wildlife hazards, maintain critical systems, and collaborate with pilots and emergency responders to ensure 24/7 protection for travelers. This proactive approach exemplifies how safety is embedded into operations, not simply responded to in moments of crisis. That same focus on prevention is found across the City. Public Works crews keep roads clear in severe weather, maintain stormwater and sewer systems, and care for the fleet that emergency responders depend on. Water Department staff run hundreds of tests every day to ensure clean drinking water, protect public health, and ensure firefighting capacity. At the Water & Resource Recovery Center, millions of gallons of wastewater are safely treated daily while programs like Industrial Pretreatment and FOG prevent hazardous backups and protect people, property, and the Mississippi River. These systems—airField safety, streets and utilities, water and wastewater—may operate largely out of public view, but they are the backbone of a safe and functioning community. When they work well, residents can move, work, and live without disruption. When incidents do occur, this strong foundation ensures that responders can act quickly and effectively. Safety Through Law, Regulation, and Responsible Growth Many of the City's departments protect residents by shaping safe environments long before emergencies or hazards occur. Planning Services enforces the Unified Development Code to maintain safe building practices, guide responsible land use, and ensure emergency access. Floodplain regulation, subdivision review, and zoning enforcement keep people out of harm's way and reduce long-term risks. Similarly, the City Attorney's Office plays a vital behind-the-scenes role by enforcing building, nuisance, and animal control codes; supporting criminal and civil proceedings; reviewing contracts and specifications for public safety components; and providing guidance across departments. The City Clerk's Office contributes through civil service hiring processes that ensure police and fire roles are filled with qualified professionals, by overseeing background checks, and by coordinating safe community events. Housing & Community Development reinforces safety through rental licensing, inspections, and environmental health programs—addressing lead hazards, structural issues, and fire risks. Their work helps reduce unsafe living conditions while improving long-term housing stability, a factor closely tied to overall community safety. Sustainability efforts, too, are essential to public safety. They address the long-term threats of extreme weather, air quality, and climate impacts. By protecting resources, lowering risks, and strengthening resilience, sustainability work ensures that Dubuque remains safe not only today but for generations. 33 Page 1400 of 2358 Budget Message Safety Through Community Connection, Equity, and Support Several departments focus on the human and social aspects of safety. The Community Impact & Neighborhood Support Department builds stability by reducing financial stress, connecting residents to resources, and supporting neighborhood-led improvements. These upstream interventions can prevent crises, reduce involvement with the legal system, and strengthen protective factors within families and neighborhoods. The Human Rights Department promotes psychological and physical safety by enforcing anti- discrimination laws, reducing threats and harassment, ensuring access to housing and services, and building trust between residents and City government. When people feel protected and respected, they are more likely to cooperate with authorities, report concerns, and participate in community life. The Carnegie-Stout Public Library provides safe public space for all residents—a place to learn, connect, cool down, warm up, or simply rest. Its educational programs and inclusive environment foster emotional, social, and economic stability. Parks and Recreation also contributes by maintaining safe, welcoming outdoor spaces. Parks offer physical activity, mental relief, and community connection. Through collaboration with police, engineering, public works, and other departments, park safety is supported year-round. These departments highlight that safety is not only physical; it is also social, emotional, and environmental. When residents have stable housing, welcoming spaces, and equitable treatment, public safety strengthens across the entire community. Safety in Emergency Response, Technology, and Coordination Several City departments are directly involved in emergency response. The Dubuque Fire Department responds to thousands of calls annually, from medical emergencies to hazardous materials incidents, while also conducting inspections, fire prevention programs, and rigorous training. Investments in equipment, staffing, and modernized tools ensure firefighters remain prepared for both routine calls and complex events. The Dubuque Police Department protects residents through law enforcement, problem solving, community partnerships, and the use of technology to address crime and neighborhood concerns. Highly trained personnel and strong community relationships are central to their mission. The 911 Emergency Communications Center is the first critical link in any emergency. Dispatchers gather essential information, coordinate multi-agency responses, use advanced technology to pinpoint locations, and provide lifesaving instructions until help arrives. They also support after-hours communications for multiple City departments and maintain vital situational awareness through citywide cameras and cross-jurisdictional connections. Communications staff support emergency response by coordinating crisis messaging, issuing public alerts, staffing the Emergency Operations Center, and managing the Alertlowa notification system. Their work ensures residents receive timely, accurate, and accessible information when it matters most. 34 Page 1401 of 2358 Budget Message Information Technology protects the digital infrastructure that all of these departments rely on— safeguarding against cyber threats, maintaining communications systems, supporting public safety software, and ensuring uninterrupted connectivity between departments. Transportation Services supports community safety by providing reliable transit that reduces congestion, improves mobility for vulnerable residents, and offers safe travel during severe weather. Together, these departments form Dubuque's operational readiness network—preventing harm, responding to emergencies, and ensuring continuity during crises. A Community Protected by Everyone What becomes clear across every department is a shared philosophy: public safety is everyone's responsibility. It is expressed through: • the engineering controls that prevent crashes and floods • the code enforcement that ensures safe housing • the communications that keep residents informed during crises • the economic and social programs that reduce instability • the infrastructure that moves water, protects roads, and maintains technology • the emergency responders who arrive when every second counts • the parks, libraries, and public spaces that offer refuge and belonging Safety is not the work of one department—it is the woven fabric of all City operations. Because of this collective effort, Dubuque is not just safer in emergencies; it is safer every day, in ways many may never see but all benefit from. The City of Dubuque is a Community Built on Service, Safety, Stewardship & Shared Purpose. Across Dubuque's government, one theme rises above all else: people serving people. From the moment person becomes a resident to the moment water flows safely from a tap, dozens of teams work together — often quietly, often unseen — to keep our community moving, thriving, and welcoming. These departments form an interconnected ecosystem of service, each contributing to a Dubuque built intentionally, compassionately, and with an eye toward the future. At our regional airport, staff operate not just a transportation hub, but a gateway to opportunity. Their work helps businesses recruit talent, supports medical transport when minutes matter, and welcomes visitors home with professionalism and hospitality. The airport connects Dubuque to the wider world — and connects the world to us. In City Clerk services, residents find their first point of contact with local government — a place to access public records, participate in council proceedings, pursue licenses and permits, and engage in meaningful civic involvement. The Clerk's Office safeguards the historical record of our governing body while creating clear pathways for the public to understand, influence, and participate in their government. 35 Page 1402 of 2358 Budget Message The Communications Office ensures that residents receive timely, trustworthy, accessible information amid today's whirlwind of noise, rumors, and viral misinformation. Their work protects the credibility of local government, helps residents understand and access city services, and keeps transparency at the forefront even in a fast-moving digital environment. Through Community Impact & Neighborhood Support, Dubuque embraces a bigger vision: that opportunity should never be accidental. This department aligns data, resident voice, and neighborhood engagement to remove barriers and help families move toward stability and long- term economic mobility. Their mission is not just to run programs, but to strengthen the entire ecosystem of community support. The Economic Development Department works quietly but powerfully behind the scenes — turning ideas into storefronts, revitalizing underused spaces, supporting local entrepreneurs, and aligning public tools with private investment. Their work helps shape a local economy rooted in resilience, creativity, and shared prosperity. Our 911 Emergency Communications team — the dispatchers who answer calls in crisis — serve with empathy, professionalism, and genuine human care. In a newly improved communications center, they continue to support residents with focus and compassion, inspired by the community they serve. In the Engineering Department, staff act as the city's in-house engineering firm, designing and maintaining streets, sidewalks, traffic systems, sewers, stormwater networks, and fiber infrastructure. Much of their work may be invisible to residents, but it shapes every trip made in Dubuque and ensures that movement throughout the city is safe, efficient, and reliable. For the Fire Department, the heart of their message is simple: their greatest strength is their people. Highly trained, deeply compassionate, and unwaveringly dedicated, these individuals show up on the worst days of people's lives with skill, steadiness, and humanity. They see people, not incidents — and their service reflects Dubuque's core values: integrity, responsibility, and care. The Housing & Community Development Department works directly with residents to improve safety, stability, and quality of life. Through permitting, inspections, rental licensing, rehabilitation, and neighborhood revitalization, they build trust through personal interaction and help ensure that every person has access to safe, supported housing. The Health Services team protects community wellbeing through food inspections, animal control, and investigations that prevent illness and injury before they occur. Their efforts reduce avoidable healthcare costs, prevent disease, and promote a healthier, safer community — much of it quietly, diligently, and behind the scenes. Human Resources supports the people who support the public. They recruit talented employees, provide training, ensure compliance with employment laws, and help maintain safe, respectful, workplaces. Their mission is to build a capable workforce that delivers reliable, high-quality service citywide, while creating a sense of belonging. 36 Page 1403 of 2358 Budget Message Dubuque's Office of Human Rights ensures that every resident has access to safety, dignity, fairness, and equal opportunity. Going beyond enforcing nondiscrimination laws, the office provides education, outreach, dispute resolution, and guidance that fosters a community where everyone belongs. The Information Technology Department serves as the city's hidden backbone — the "wizard behind the curtain" ensuring systems run smoothly, securely, and reliably. They solve problems before disruptions occur, strengthen cybersecurity, and make digital complexity feel seamless for residents and staff. The Carnegie-Stout Public Library, approaching its 125th anniversary, continues to be a cornerstone of literacy, learning, curiosity, and safe public space. It nurtures psychological, social, and economic wellbeing through accessible resources, programming, and a welcoming environment. In Parks & Recreation, the city is turning community feedback into a decade-long plan to enhance quality of life. The new master plan invites residents to dream, imagine, and collaborate as the department invests in spaces and programs that bring joy, health, and connection. Planning Services blends data, imagination, and community input to guide how Dubuque grows. Like urban storytellers, they help shape neighborhoods that feel connected and welcoming, ensure development is safe and sustainable, and paint the next strokes of the city's evolving landscape. The Police Department remains committed to disciplined operational excellence, strong partnerships, strategic innovation, and high-quality personnel — all in pursuit of keeping Dubuque as one of the safest places to live in the country. In Public Works, deeply skilled operators, technicians, and field staff maintain the physical backbone of the city. Their work is essential, demanding, and often invisible — from clearing storm drains to maintaining streets to ensuring emergency response is possible. They steward the infrastructure that keeps Dubuque functioning, safe, and resilient. Sustainability touches every aspect of daily life, from air and water quality to transportation, health, biodiversity, waste, and food systems. The city's sustainability work encourages residents to think broadly about how the community can thrive while protecting long-term environmental health. The city's transportation system, The Jule, connects people to possibility. Every bus route expands access to jobs, education, services, and opportunity. In FY27, The Jule continues its commitment to sustainability and community connection — because when mobility expands, community wellbeing expands with it. The Water Department works with precision and scientific rigor to ensure safe, clean, reliable drinking water. Through extensive daily and monthly testing, they safeguard public health, support essential amenities, and ensure Dubuque meets the highest standards of safety and emergency readiness. 37 Page 1404 of 2358 Budget Message Without the Finance Department nothing runs. Managing a $250 million annual budget, paying bills, making payroll, purchasing goods, and keeping employees safe is a big and important job. In addition to financial responsibilities, the Finance Department oversees the implementation of the City's organization-wide safety program. The City is committed to providing a safe and healthy workplace for all employees, and safety is treated as a core value at every level of operations. To strengthen this commitment, the City has established a multi-department safety committee and completed a comprehensive review of all safety policies and procedures to ensure alignment with OSHA standards and best practices. The Water & Resource Recovery Center operates around the clock, using chemistry, biology, engineering, and continual monitoring to protect the environment and public health. Their team blends technical excellence with a commitment to workplace culture, investing in reliability, innovation, and people as they prepare for the future. Finally, the City Attorney's Office and the City Manager's Office work closely with the Mayor and City Council to ensure departments have the tools they need to carry out the goals and priorities established by the City Council. 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. I want to thank Chief Financial Officer Jennifer Larson, Assistant City Manager Cori Burbach, Public Information Officer Randy Gehl, Budget Manager Laura Bendorf, Budget/Financial Analyst Shannon Soppe, Budget/Financial Analyst Nikesh Shah, Budget/Financial Analyst Nathan Kelleher, and Executive Assistant Stephanie Valentine for all their hard work and dedication in preparation of this budget recommendation. I respectfully recommend Mayor and City Council adoption of the Fiscal Year 2027 Budget recommendation, and I look forward to the multiple public input meetings to come. ��2�� GV�r Michael C. Van Milligen City Manager MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jennifer Larson, Chief Financial Officer Laura BendorF, Budget Manager 38 Page 1405 of 2358 THE CITY OF Masterpiece on the Mississippi . . April 6, 2026 1 THE CITY OF DuB E � � � Maste iece on the Mississi i rP PP • Budget theme & Council priorities • Property tax recommendation & impacts • North End valuation trends & investments • Improvement packages & revenue scenarios • Enterprise fund rate proposals • Organizational changes • TIF funding • Capital improvements & GO debt • Water/Wastewater & WRRC i nvestments • Public Safety staffing • Closing recommendation � THE CITY OF DuB E UV e m e Maste iece on the Mississi i rP PP Futu re -focused i nvestment i n : • Safet y • Streets • Access to essential services Built on : • 2025 2027 Ma or & Cit Council Goals and y y Priorities ado ted Se t . 2025 p p 3 THE CITY OF � DuB E I�� - e a r O� � Maste iece on the Mississi i rP PP • Healthy and Safe Community • Financially Responsible, High-Performance City Organization : Sustainable and Effective Service Delivery • Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity • Livable Neighborhoods and Housing : Great Place to Live • Sustainable Environment: Preserving and Enhancing Natural Resources • Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility • Diverse Arts, Culture, Parks, and Recreation Experiences and Activities 4 THE CITY OF � � � DuB E o r� o r� � e s Maste iece on the Mississi i rP PP • Commercial Air Service Future : Strategy and Action Plan to Sustain and Expand • Comprehensive Fire Station Location and Facilities Study • Fire Department Staffing Increases • Police Department: Full Staffing and Hiring • Sanitary Sewer Investments and Implementation • Sports Complex Development • Stormwater Management Investments and Implementation • Street Maintenance/Rehabilitation Program 5 THE CITY OF ■ ■ ■ ■ i ri o ri i es DuB E Masterpiece on the Mississippi • Continued Implementation of Central Avenue Revitalization Plan • Downtown Master Plan Update • Dubuque Law Enforcement Center (DLEC) Short-Term Facility Enhancements and Future Plan • East-West Corridor/Roundabouts Projects • Next Phases of Chaplain Schmitt Island Development • Parks and Recreation Master Plan Adoption and Implementation • Water Resource and Recovery Center Facility and Process Improvements and Odor Reduction 6 THE CITY OF ro e ax DuB E ' Masterpiece on the Mississippi ecommen a � on Recommended Rate : • 1 . 00% rate increase • FY26 : $ 10 . 0637 • FY2 7 : $ 10 . 164 8 Avera e Homeowner Im act : J p • +3 . 00 % cost i n crease • +$26 . 68 er ear p Y � • � . � � � • • � � � • , • , • • , • „ Property Tax +6.93% . $29,872,253 $31 ,940,934 Asking (+$2,068,681 ) THE CITY OF � � DuB E V� I e n � a �O � � �� Maste iece on the Mississi i rP PP Avera e Residential Value : $213 211 g � • FY26 Cit Taxes : $889 . 20 y • FY27 Cit Taxes : $915 . 87 y • +$26 . 67 +3 . 0% Lon -Term Context : g • Since 1989 : + 1 . 52 % avera e annual increase g $9 . 92/ ear y • With fu I I Homestead Cred it fu nd i n : +$7 . 32/ ear g y 9 • � • ' � � • • � � i � , • , • • , • „ • . • • - � iT�� $150,000 or less -$36.98 -5.2% $ 150,001 —$300,000 -$23.34 -1 . 1 % $300,001 —$450,000 -$9.69 -0.3% Avg . _ $624,927 +$770.05 +18. 1 % � • � . � � • � � • • � • � , • , • • , • „ • • - � iT�� $150,000 or less -$36.98 -5.2% $ 150,001 —$300,000 -$23.34 -1 . 1 % $300,001 —$450,000 -$9.69 -0.3% Avg . _ $731 ,693 +$910.27 +17.9% THE CITY OF , � � � DuB E U � � � � a ew� � O� I I O � Maste iece on the Mississi i rP PP • Lowest ro ert tax rate amon lowa cities p p Y J with >50 000 o u lation � p p • Avera e of other 10 cities : 55% h i her g g • H i hest cit tax rate Waterloo : 116% h i her g y g 12� THE CITY OF DuB E O � n s s es s m e n re n � Maste iece on the Mississi i rP PP Percent Chan e b Assessment C cle J Y Y � - � • . . � , : • : � , � � � • - : � . � � , � - � � � � , - � , 13 THE CITY OF DuB E O � n n v e s m e n s Maste iece on the Mississi i rP PP • Bee Branch Watershed Pro'ect $250M J • Comiske Park y • Ker er Blvd rou ndabout & san ita sewer p rY u p rades g • Crescent Communit Health Center y • Cha lain Schmidt Island $80M p • 14th St Railroad Over ass $50M p • 16th Street Com lete Streets p • Flood -related repair assistance pro rams g 14 � � � THE CITY OF ons � era � ons or ower� n DuB E Masterpiece on the Mississippi ecommen e ro er ax ncrease • FY2027 0 ortu n ities and chal len es pp J • Usin one-time revenues for recurrin g g ex enses is oor fi nancial strate p p JY • P e n d i n P ro e rt Tax Ref o rm I m a cts J p Y p 15 THE CITY OF � • • DuB E n e r �I �� I I a e s Maste iece on the Mississi i rP PP , ' �� • � � � • � i � i • � � 1 � � � � 1 • 1 1 • � � � � � • i � � i � 1 � • � � • � � i � '1 1 • '1 / '1 1 • • • ' 1 1 � I 1 � *3,200 gallons per month is the average residential user with a 5/8 inch water meter. Low-income customers are eligible for a 50% discount on their base city utility rates. 16 • � � . � . � • • . • � j � � • , • • � • „ Rate Comparison, Lime Softened Facilities Only $40.00 $34.05 $30.00 $27.97 $27.36 $27.07 $26.93 $23.52 $23.40 �21.59 $20.00 � $10.00 �— Cedar Ames Des West Des Ave. W/O lowa City Dubuque Council Rapids Moines Moines Dubuque Bluffs FY27 Water Only for Average Household (3,200 gallons) THE CITY OF DuB E FY2 0 2 7 Wate r Rate C o m a ri s o n Masterpiece on the Mississippi p • Dubu ue has the 2nd lowest rate a • H i hest rate Cedar Ra ids is 45 . 51 % g p hi her than Dubu ue's rate g a • Avera e rate is 12 . 92 % hi her than Dubu ue g g q 18 THE CITY OF ■ ■ an � a ewer om ar� son DuB E Masterpiece on the Mississippi Average monthly fee based on the average use of 3,200 gallons per month � - • ', � � • � � - • - '� : The average month ly • � . _ � , ,, ; • fee in Dubuque is 14.6% ; _ . , - , . . �, • lower than the highest . . � _ �, . (Ankeny) � . �, ; . _ �, � , The average fee for all , . _ . . ,, ; � the other cities is 9.6% _ � _ . _ ,, lowerthan Dubuque � . ,, ; � . : �, � *Council Bluffs subsidizes their sanitary sewer . _ , � _ � fee with Local O tions Sales Tax revenue �� p � • • - 19 ■ a n � a ewe r : n n u a THECITYOF . DuB E a e n c re a s e O � a r i s o n Masterpiece on the Mississippi Average Annual Rate Increase FY20 — FY27 • : : ' � Including the 9% rate increase in FY27, the . : � , average annual rate increase for Dubuque _ � , . , � � � . , is fourth highest over the past 7 years. , � � � _ . , , . The average annual rate increase for all of � " • • ' � � the other cities is 5.2%, which is 19% lower • ' - � � ' � than Dubuque. � , - • . � , : • . ' � ' - . • - • � *Council Bluffs subsidizes their sanitary sewer � • • - � fee with Local Options Sales Tax revenue 2� THE CITY OF DuB E eu s e a e Maste iece on the Mississi i rP PP Com arisons not avai lable p Col lection Veh icle Re lacements : p • Re uestin to switch all semi-automated side loaders q g to fu I I automated . y • Currentl have 6 automated side-loaders ASL y • Purchasin 3 more ASLs over the next 5 ears g y • $375 000 ra ler truck lar e item collections � g pp g re uested in F2027 to re lace 2007 truck. q p 21� THE CITY OF ■ ormwa er a e om ar� son DuB E Masterpiece on the Mississippi • Dubuque has the � . _ . - �, � . 2nd h i hest rate • � • • - �� , , ; _ . _ , _ ,, . . � • Dubuque s rate is _ . , . . . . . . � . . 41 % lower than the , . _ �, � highest . . �, � , • Avera e is 35% � " " ' g . _ �, � lower than , ,, , ; ; Dubuque • . - . . �, ' - . . - . � . � • • - � . 1 22� � � THE CITY OF o rmwa e r � � ee DuB E ' ' ' Masterpiece on the Mississippi u s � � es re � s - . . - . . - . . - : : ', � • • • • - . • ' • • - . . '� • 1 ' • . . ' . . • ' � 1 � ' . � • : . • • �� : � . ' . . ' • • . � • � � � � Since the establishment of the City's Stormwater Management Utility in 2003, the budget has included a general fund subsidy for property tax exempt organizations (50%), low-to-moderate income residents (50%), and residential farms (75%). The City a/so offers stormwater credits to customers who apply for and maintain private detention basins. 23 THE CITY OF FY2025 Uti I it Base Rate 50% Low- DuB E y I n c o m e Re d u ct i o n Ac c o u n ts b M o n t h Masterpiece on the Mississippi y . . . . : , „ . . . , : . , . . : , . . . . , , . . . : . . , . , . : , . : . . . : . . . , : . , . . . . . . . . : , . . : . , . : . . . On average, 556 accounts per month received reduced bills in FY2025. FY2025 individual bills reduced: 26, 707 24 � � � � � � � � � i 1 � � � � . � � � � � � � � � , , , , , � • �� Stormwater $29,478.39 Wate r $32,689.77 Sanitary Sewer $46,012.85 Solid Waste $55,831 .82 FY2025 Total Reduced Fees $ 164,0121 .83 THE CITY OF m rovemen DuB E Masterpiece on the Mississippi ac a es • Total re uests : 2 968 870 q � � • 659 063 recurrin � g • 974 917 non -recu rri n fu nded b i nternal � J Y loan re a ments p Y • Recurrin fundin de endent on Downtown J J p TI F ca tu re chan i n to 75% starti n FY28 p J J J 26 THE CITY OF � DuB E e v e n u e c e n a r� o s Maste iece on the Mississi i rP PP � � � � � � � � � � � � �� • � � , �� • � � � � ' • ' • ' • �� • : � : 2� THE CITY OF � • DuB E r a n � z a � o n a a e s Maste iece on the Mississi i rP PP • Elimination of Economic Mobilit & y Nei hborhood Su ort De artment J pp p • Administrative Su ort Professional � IT pp � Human Ri hts and 911 g � • Temwa Phiri � Communit Im act & Y p Nei hborhood Su ort J pp • Corrine Rothblum � Communit Im act & Y p Nei hborhood Su ort g pp 28 THE CITY OF � DuB E ow n ow n � � I � Maste iece on the Mississi i rP PP ■ ecommen a � on : Be innin in FY2028 Cit onl claims 75° of 9' 9' , y y � revenues. Unclaimed 25° o would o to taxin 9' 9' bodies. 29 • � . � � � • • • • , • , • • � • „ � . . . - . . � . � - - . - � Dubuque Community School District 37.75% $1 ,284,104 City of Dubuque 36.26% $1 ,233,420 Dubuque County 19.96% $678,959 Northeast lowa Community College 2.75% $93,544 Sunnycrest Manor County Hospital 1 .89% $64,290 Dubuque Agricultural Extension 0.41 % $13,947 Dubuque City Assessor 0.98% $33,336 Total 100.00 % $3,401 ,600 � THE CITY OF � DuB E U � I � Maste iece on the Mississi i rP PP FY2027: Would repay to the City of Dubuque internal loans of $5,060,682 and Dubuque Industrial Center TIF District internal loans of $332 ,307 for a total of $5,392 ,989. These funds would be used as follows: � FY2027 general fund recurring operating expenses: $702,793 � FY2027 general fund recurring improvement packages: $349,784 � FY2027 general fund non-recurring improvement packages: $929,712 • FY2027-2030 internal loans to Refuse Collections Fund : $587,638 • FY2027 internal loan to Garage Service Fund : $ 180,693 Remaining $2. 6 million would be held in reserve in case needed to help transition the city budget in FY2028 from any FY2028 State of lowa property tax reform legislation. 31� • � . � � � • • • • , • , • • � • „ ' - • • � • • ' • - • • 1 : • • . • ' � - • � • 2027 $13,524,219 $ % 2028 $10, 162,871 -$3,361 ,348 -24.85 % 2029 $10, 137,372 -$3,386,847 -33.33 % 2030 $10, 111 ,873 -$3,412,346 -33.66 % 2031 $10, 111 ,873 -$3,412,346 -33.75 % • � � • � • � � � � . � � � • , • • � • „ ' - . - • ' • - • • . • - Five Flags Renovation $23,464,000 $7,055,088 -$16,408,912 Downtown Rehab Grant Program $5,500,000 $5,504,390 $4,390 Downtown Storefront Retention Program $— $400,000 $400,000 Central/White Street* $8,170,000 $11 ,170,000 $3,000,000 East-West Corridor* $1 ,240,275 $6,000,321 $4,760,046 Total $38,374,2755 $30,129,799 -$8,000,000 1 . • • . � . • 1 • • . - . 1 ' � • � . � � � � ' • � . , • , • • , • „ FY27 $ 12,991 ,499 FY28 $ 16,756, 114 FY29 $ 15,288,879 FY30 $ 16,520,648 FY31 $ 15, 114,2 0 8 Tota I $76,671 ,348 , THE CITY OF DuB E �� Maste iece on the Mississi i rP PP • Much is Essential Corporate Purpose debt and can be issued by a vote of the City Council . • Some can be issued by a vote of the City Council, but is subject to a reverse referendum where residents can circulate a petition and then a referendum vote is required . • Some would be recommended as a voter referendum . • Major project decisions will occur over the next few years that may require debt financing, but scope, scale, and costs are not yet determined. • Some of these capital projects will require a voter referendum . 35 � THE CITY OF a � ona n ras ruc u re DuB E Masterpiece on the Mississippi ressures McKinsey (2024) : • Water utilities fundin a : $ 110B � $ 194B b 2030 gg p y ASCE (2025) : • Drinkin Water: C- $309B a g I g p • Public Parks : C- $44B � • Solid Waste : C+ $ 16B I • Transit: D $ 152B � • Wastewater/Stormwater: D & D+ Combined $690B a I g p 36 � � � THE CITY OF or e � a � � DuB E n ve s m e n s Masterpiece on the Mississippi Chemical Dosing Results: • H2O2 dosing : 50% H2S reduction • Ferric chloride: 13,000 ppm � 490 ppm; struvite 330 Ib/day � 40 Ib/day Infrastructure Investments: • Activated sludge cleaning : $42,500/yr (3-year cycle) • Digester cleaning : annual funding ; Digester #4 cleaning in June 2026 • System resiliency upgrades: $ 1 ,380,000 • DO monitoring: $135,000 • Influent monitoring : $40,000 Controls Modernization : • Electrical controls: $7.2M total (Phase 1 : $2.36M underway) Hauled High-Strength Waste Improvements: • $8. 1 M , fully funded by users 37 THE CITY OF � • DuB E I �� e a m e n � I � Maste iece on the Mississi i rP PP • FY22 : 92 . 16 FTE � FY26 : 109 . 16 FTE • + 17 FTE + 18 . 5% over 4 ears y • FY27 ro osal : +9 Firefi hter/Paramedic p p g p os i t i o n s 28. 2% in crease sin ce FY2022 • SAFER rant a lication in 2026 g pp • Alternatives if rant not awarded : hased h i ri n g p g 3/ ear rea I in FY28 or bud et amendment Y � pp y � g 38 THE CITY OF � • DuB E � � s e c re a � o n � ' � Maste iece on the Mississi i rP PP • FY27 : +2 Park Mai ntenance Tech n icians • Total added i n two ears i ncl . Ea le Poi nt y g Park osition : 3 p 39 THE CITY OF � � � DuB E � O � a � a �O � � � Maste iece on the Mississi i rP PP • Catfish Creek san itar sewer i m rovements Y p • 17th/Locu st Street sto rmwate r u rad es pg • 14th Street Ra i I road Ove r ass p • New dee well for Water De artment p p • O tion : Dela / hase some ro ' ects if Cou nci I p Yp p J wants lower utilit rates endin rants y p gg 40 � � � THE CITY OF u � c a e as a � w� e DuB E ' Masterpiece on the Mississippi omm � men Safet involves eve de artment, includin : Y rY p J • Ai r o rt p • Public Works , En ineerin , Water, WRRC g g • Plannin , Le al , Cit Clerk g g y • Housin & Communit Develo ment, Human Ri hts g y p g • Librar , Parks & Recreation y • Police , Fire , 911 • Communications , IT, Transit 41� � THE CITY OF ecommen a � on ex DuB E Masterpiece on the Mississippi e s Recommendation : Adopt the FY27 Budget to protect safet streets , and essential services while preparing for F 28 state property tax refo rm s . Next Steps : • 8 Public input sessions • Detailed enterprise rate modeling • Continued grant pursuit • Project planning and scheduling 42� THE CITY OF � � DuB E UI � e e � n � Maste iece on the Mississi i rP PP • Tuesday, April 7 : Engineering , Public Works , Water, Water & Resource Recovery Center • Thursday, April 9 : Housing & Community Development, Planning Services , Economic Development, Purchase of Services , Transportation Services 43 THE CITY OF � � DuB E UI � e e � n � Maste iece on the Mississi i rP PP • Monday, Apri I 13 : Carneg ie-Stout Pu bl ic Li brary, Five Flags Civic Center, Grand River Conference Center, ImOn Ice Center, Recreation , Parks • Wed nesday, Apri I 15 : H u man Resou rces , I nformation Technology, Communications , Finance • Th u rsda , Apri I 16 : Cit Mana er's OfFice , Cit y y g y Council , Cit Clerk's Office , Cit Attorne 's Office y y y 44 THE CITY OF � � DuB E UI � e e � n � Maste iece on the Mississi i rP PP • Tuesda , April 21 : Dubuque Re ional Airport, Office of Y g Human Rights , Community Impact & Neighborhood Support, Multicultural Family Center • Wednesday, April 22 : Police , Fire , Emergency Management, Emergency Communications , Health Services • Tuesday, Apri . 28 : Pu bl ic Heari ng to Adopt the FY2027 Budget 45 CITY OF DUBUQUE, IOWA Fiscal Year 2027-2031 Capital Improvement Program (CIP) TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Attached is the Fiscal Year 2027-2031 Capital Improvement Program (CIP). State law requires that a five-year CIP be adopted by the City Council after a public hearing. The required CIP public hearing will be held April 28, 2026, at the same time as the public hearing on the Fiscal Year2027 Operating Budget. The CIP, as the plan for the City's physical development effort, attempts to address a variety of needs that the City must meet if it is to maintain its physical facilities, meet its service commitments and provide for its future development. The CIP adoption reflects the City's comprehensive plan and the goals and priorities established by the City Council and are shown in each of the State mandated budget program areas. With the pledge of the $1.1 trillion dollar federal infrastructure package and other opportunities to compete for grants, the City was successful in obtaining several large grants and now will be implementing those projects, especially the Bee Branch Flood Mitigation Project, 16th Street Pumping Station, and the 14th Street Overpass project. A particular emphasis in this five-year CIP is modernization of the City sanitary sewer system to accommodate the growth the City is currently experiencing, and anticipating in the next few years and beyond. In the current fiscal year (FY 2026), the City will have allocated $22,026,250 and in this new five-year CIP, the City will have allocated an additional $74,871,571 for a total of$96,897,821 from July 2025 through December 2031. The Fiscal Year 2027 CIP budget recommendation of$80,633,738 is a 12.17% decrease from the Fiscal Year 2026 CIP budget of$91,803,749. The City will issue $221,888,207 in new debt in the recommended five-year CIP, mostly for fire equipment replacement, fire station improvements, fire station expansion, airport improvements, park improvements, public works truck replacements, Federal Building renovations, solid waste collection vehicles, sanitary sewer improvements, water system projects, stormwater improvements, parking maintenance, renovation of Five Flags, East - West Corridor Capacity Improvements, 14th Street Overpass, and Central Avenue improvements , for a total of$221,888,207 of debt in FY 2027-2031. The City will retire $142,273,584 of existing debt, increasing the amount of City debt by$79,614,623. The greatest use of debt over the next five years is for sanitary sewer maintenance and improvements ($74,871,571). For Fiscal Year 2027, the use of the statutory debt limit would be 35.58%, and by the end of the Recommended 5-Year Capital Improvement Program (CIP) budget in Fiscal Year 2031, the City of Dubuque would be at 35.31% of the statutory debt limit. - i - Page 1451 of 2358 In this budget recommendation, the Mayor and City Council are currently reviewing, projections out 10 years to Fiscal Year 2036 show the City of Dubuque at 26.00% of the statutory debt limit. This is an improvement on the debt reduction plan adopted in August 2015, that first began implementation in Fiscal Year 2016. In the extremely low interest rate environment prior to 2015, the City had been increasing the use of debt to accomplish the projects that need to be done. To have any success, a community must have a sound infrastructure. The Mayor and City Council has recognized the infrastructure issues Dubuque faces and has been responsive. While there was some criticism of City use of debt to deal with those infrastructure challenges, that criticism fails to recognize that not financing the needed infrastructure maintenance and improvements is also a form of debt that is passed down to future generations. This was a strategic decision by the City Council realizing that infrastructure investment just gets more expensive over time for these reasons: a) the older a piece of infrastructure gets and the more it is allowed to deteriorate increases costs; b) the longer the wait to invest in infrastructure the costs are increased by inflation; and c) If the investment in infrastructure is not made in this low interest rate environment this investment will eventually need to be made when interest rates are higher, thereby increasing costs. However, beginning in FY 2016 the City Council at their 2015 Goal Setting Session debt reduction was adopted as a High Priority. So the amount of outstanding debt began to decrease. However, in 2022 a fourth reason was created for considering using debt for infrastructure projects and that is the massive amount of federal grant money that was being made available. Most of these grants require matching dollars and most require that the engineering work already be financed and completed to make the projects shovel ready. In addition, modernization, maintenance, and extension of the City sanitary sewer system to accommodate the growth the City is currently experiencing, and anticipating in the next few years and beyond. The debt principal outstanding projected as of June 30, 2026, is currently $241,580,078. The breakdown of the debt principle outstanding as of June 30, 2026, is as follows: 6/30/2026 Principle Debt Obligation Outstanding General Obligation Essential Corporate Purpose $93,656,000 Less General Obligation Debt Subject to Annual Appropriation $(13,369,544) Tax Increment Notes and Bonds $14,720,000 Economic Development TIF Rebate Agreements $4,379,506 Other Revenue-Backed Loans $2,381,017 Total Indebtedness Subject to Statutory Debt Limit of$323,629,585 $101,766,979 Percent of Statutory Debt Limit Used as of June 30, 2026 35.58% Revenue Bonds $126,443,555 Less Revenue Bonds Subject to Annual Appropriation ($9,581,282) Add Debt Subject to Annual Appropriation $22,950,826 Total City Indebtedness as of June 30, 2026 $241,580,078 - ii - Page 1452 of 2358 The City will issue $176,633,737 in new debt in the Recommended 5-year CIP, mostly for fire equipment replacement ($3,672,408), fire station improvements, fire station expansion ($8,791,700), airport improvements, park improvements, public works truck replacements ($1,533,747), Federal Building renovations ($5,395,000), solid waste collection vehicles ($2,739,173), sanitary sewer improvements ($68,114,812), water system projects ($27,727,577), stormwater improvements ($4,120,000), parking maintenance ($4,150,000), renovation of Five Flags ($6,200,000), street improvements ($15,122,206), East - West Corridor Capacity Improvements ($4,280,000), 14th Street Overpass ($3,571,293),and Central Avenue improvements ($9,770,000). Project FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Total Fire Panel Replacement- LOST 20% $ - $ - $ - $ 155,000 $ - $ 155,000 Radon Mitigation - City Hall- LOST 20% $ 20,000 $ - $ - $ - $ - $ 20,000 Sidewalk Program -Assessable- LOST 20% $ 10,000 $ - $ - $ 15,000 $ 20,000 $ 45,000 Harbor Area Maintenance- Dredging - LOST 20% $ - $ - $ 200,000 $ 25,000 $ - $ 225,000 Reconstruct Taxiway Alpha - LOST 20% $ 804,999 $ 192,000 $ - $ - $ - $ 996,999 Asphalt Pavement Repair- LOST 20% $ - $ 175,000 $ 175,000 $ - $ - $ 350,000 Taxiway J Improvements- LOST 20% $ - $ - $ - $ 364,560 $ 350,000 $ 714,560 Taxiway D Extension- LOST 20% $ - $ - $ - $ 294,000 $ - $ 294,000 Fire Station Expansion/Relocation - LOST 20% $ 100,000 $ - $ - $ - $ - $ 100,000 Outdoor Warning Siren Repair/Replace- LOST 20% $ 54,000 $ - $ - $ - $ - $ 54,000 Portable Radio Replacements - LOST 20% $ 490,000 $ - $ - $ - $ - $ 490,000 2027 Fire Engine Replacement (1907) - LOST 20% $ 20,000 $ - $ - $ - $ - $ 20,000 2028 Fire Engine Replacement (1905) - LOST 20% $ - $ 20,000 $ - $ - $ - $ 20,000 2027 Ambulance Replacement (1914) - LOST 20% $ 500,000 $ - $ - $ - $ - $ 500,000 2031 Fire Engine Replacement (1910)- LOST 20% $ - $ - $ - $ - $ 1,288,408 $ 1,288,408 2030 Ambulance Replacement (1915)- LOST 20% $ - $ - $ - $ 635,000 $ - $ 635,000 Building Maintenance - GO Debt- LOST 20% $ 99,136 $ 864 $ 100,000 $ 100,000 $ - $ 300,000 2031 Ambulance Replacement (130010) - LOST 20% $ - $ - $ - $ - $ 665,000 $ 665,000 - iii - Page 1453 of 2358 Project FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Total Install HVAC Systems at Fire Station 5 &6 - LOST 20% $ 100,000 $ - $ - $ - $ - $ 100,000 Fire Station Expansion/Relocation - Debt Service Levy $ - $ 250,000 $ 900,000 $ 4,000,900 $ 3,540,800 $ 8,691,700 Aerial Photography - LOST 20% $ - $ - $ - $ 98,800 $ - $ 98,800 Network Switch Replacement- LOST 20% $ - $ - $ 142,500 $ 142,500 $ - $ 285,000 Network Security Risk Assessment - LOST 20% $ 25,000 $ - $ - $ 25,000 $ - $ 50,000 City-Wide Computer and Printer Replacements - LOST 20% $ - $ - $ 482,500 $ 376,344 $ 486,500 $ 1,345,344 Eagle Point Park Master Plan - LOST 20% $ 165,000 $ - $ - $ - $ - $ 165,000 EPP-Jeffris Grant Construction- LOST 20% $ 61,814 $ - $ - $ 15,000 $ 15,000 $ 91,814 Trail Maintenance/Repair- LOST 20% $ - $ - $ - $ - $ 50,000 $ 50,000 Mechanic Shop - Replace Roof- LOST 20% $ 35,000 $ - $ - $ - $ - $ 35,000 Park Office-Replace Roof- LOST 20% $ 12,000 $ - $ - $ - $ - $ 12,000 DLEC Upgrades & Maintenance - LOST 20% $ 208,300 $ - $ - $ - $ - $ 208,300 MSC Fire Alarm System &Access System Replac- LOST 20% $ 21,250 $ - $ - $ - $ - $ 21,250 Marina - Dock Fuel & Electrical System Rehab - LOST 20% $ 50,000 $ - $ - $ - $ - $ 50,000 Marina Gas Dock Network Switch - LOST 20% $ 30,000 $ - $ - $ - $ - $ 30,000 Bunker Hill Basement Leak Repair- LOST 20% $ 30,000 $ - $ - $ - $ - $ 30,000 Flora & Sutton Pool Tank Resurfacing - LOST 20% $ 135,000 $ - $ - $ - $ - $ 135,000 Flora & Sutton Leak Repair- LOST 20°/o $ 30,000 $ - $ - $ - $ - $ 30,000 Bunker Hill Admin Office Lead Remediation Project- LOST 20% $ 30,000 $ - $ - $ - $ - $ 30,000 14th Street Overpass - LOST 30% $ 552,108 $ 1,578,054 $ 1,441,131 $ - $ - $ 3,571,293 East- West Corridor Capacity Improvements- LOST 30% $ 100,000 $ 1,262,800 $ 706,400 $ 1,105,400 $ 1,105,400 $ 4,280,000 Central Ave White St Corridor Master Plan Design and Implementation Improvements 4th-22nd St - LOST 30% $ 330,000 $ 1,760,000 $ 1,780,000 $ 2,900,000 $ 3,000,000 $ 9,770,000 - iv- Page 1454 of 2358 Project FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Total Pavement Marking Project- LOST 30% $ - $ - $ - $ - $ 215,600 $ 215,600 Sidewalk Program - City-Owned Property - LOST 30% $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 800,000 Pavement Rehabilitation - Dowel Bar- LOST 30% $ - $ 1,035,000 $ - $ - $ - $ 1,035,000 17th/Locust Street Reconstruction Phase 4 - LOST 30% $ - $ 2,055,000 $ 2,270,000 $ 440,000 $ - $ 4,765,000 Brick Paver Maintenance - LOST 30% $ - $ - $ - $ 205,000 $ - $ 205,000 Stone Retaining Walls - LOST 30% $ - $ - $ - $ - $ 200,000 $ 200,000 Bridge Repairs and Maintenance - LOST 30% $ - $ - $ - $ 535,000 $ 570,000 $ 1,105,000 ADA Curb Ramp Program 10M - LOST 30% $ 402,204 $ 443,417 $ 453,952 $ 505,995 $ 600,000 $ 2,405,568 Pavement Rehabilitation - Concrete Street Repair, Mill &Asphalt Resurfacing - LOST 30% $ 500,000 $ 525,000 $ 550,000 $ 575,000 $ 600,000 $ 2,750,000 Concrete Street Section Repair Program - - LOST 30% $ 565,500 $ 229,676 $ 255,215 $ 281,647 $ 309,000 $ 1,641,038 Hawthorne St Boat Ramp - LOST 30% $ - $ 353,194 $ - $ - $ - $ 353,194 NW Arterial Shoulder Paving Project - - LOST 30% $ 616,875 $ 537,469 $ 564,343 $ 592,560 $ - $ 2,311,247 Municipal Services Center Roof Replacement - LOST 30% $ 333,313 $ - $ - $ - $ - $ 333,313 58,000 Gross Vehicle Weight Dump Trucks - 3222 - LOST 30% $ - $ - $ 352,800 $ - $ - $ 352,800 44,000 GVW Dump Truck Replacement - 3201 - LOST 30% $ - $ 292,850 $ - $ - $ - $ 292,850 44,000 GVW Dump Truck Replacement - 3212 - LOST 30% $ - $ - $ - $ 259,398 $ - $ 259,398 Wheel Loader Purchase-3209 - LOST 30% $ - $ - $ 301,159 $ - $ - $ 301,159 3230 -Aerial Bucket Truck Replacement- LOST 30% $ - $ 327,540 $ - $ - $ - $ 327,540 Solid Waste Collection Vehicles - Refuse $ 460,000 $ 463,250 $ 408,879 $ 640,544 $ 766,500 $ 2,739,173 GRC - Roof Restoration- GDTIF $ - $ - $ 1,350,000 $ - $ - $ 1,350,000 Downtown Rehabilitation Grant Program - GDTIF $ 800,000 $ - $ 100,000 $ - $ 100,000 $ 1,000,000 -v- Page 1455 of 2358 Project FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Total Downtown Storefront Activation Program - GDTIF $ — $ — $ 100,000 $ — $ — $ 100,000 Federla Building Renovation- GDTIF $ 1,365,000 $ 2,015,000 $ 2,015,000 $ — $ — $ 5,395,000 Five Flags Building Improvements - GDTIF $ 2,750,000 $ 3,040,000 $ — $ — $ — $ 5,790,000 Boiler Replacement - GDTIF $ — $ — $ 410,000 $ — $ — $ 410,000 Downtown ADAAssistance- GDTIF $ — $ — $ 30,000 $ — $ — $ 30,000 Jackson Park-Restroom Building- GDTIF $ 100,000 $ — $ — $ — $ — $ 100,000 Ramp Major Maintenance - GDTIF $ 1,085,000 $ — $ — $ 2,033,000 $ 1,032,000 $ 4,150,000 Sanitary Sewer Projects $ 12,232,834 $ 17,579,781 $ 17,132,176 $ 12,669,824 $ 8,500,197 $ 68,114,812 Stormwater Projects $ 1,355,000 $ 1,495,000 $ 1,270,000 $ — $ — $ 4,120,000 Water Projects $ — $ 7,302,707 $ 11,563,870 $ 6,806,000 $ 2,055,000 $ 27,727,577 Total New Debt $ 26,579,333 $ 43,133,602 $ 45,254,925 $ 35,996,472 $ 25,669,405 $ 176,633,737 The City will retire $142,273,584 of existing debt over the next five-years (FY27-FY31). The following chart shows the change in debt from Fiscal Year 2027 - Fiscal Year 2031: FY FY FY FY FY Project 2027 2028 2029 2030 2031 Total New Debt $ 26,579,333 $ 43,133,602 $ 45,254,925 $ 35,996,472 $ 25,669,405 $ 176,633,737 Retired Debt -$25,371,787 -$28,057,116 -$29,480,446 -$30,454,045 -$28,910,190 -$142,273,584 Net Debt Increase (Reduction) $1,207,546 $15,076,486 $15,774,479 $5,542,427 -$3,240,785 $34,360,153 There was a 10.74% increase in assessed value effective January 1, 2025, which is the assessment the Fiscal Year 2027 statutory debt limit is based on. The statutory debt limit effective June 30, 2027 is $358,374,258. The City will be at 33.38% of statutory debt limit by June 30, 2027. In FY 16 the City was at 86.13% of statutory debt limit, so 33.38% in Fiscal Year 2027 is a 53.16% decrease in use of the statutory debt limit. The history of the City's use of the statutory debt limit is as follows: FY15 FY16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY24 FY25 FY26 83.87°/a 86.54% 66.06% 59.79% 52.90% 46.91% 43.51% 43.33% 36.48°/a 35.85% 34.10% 35.58% -vi - Page 1456 of 2358 The five year projection of the City's use of the statutory debt limit from Fiscal Year 2027-2031 including all planned debt issuances subject to the statutory limit and assuming a 2% growth in the City's assessed valuation beginning in Fiscal Year 2027 is as follows: FY 27 FY 28 FY 29 FY 30 FY 31 33.38% 34.45% 34.96% 35.31% 35.59% The following chart shows Dubuque's relative position pertaining to use of the statutory debt limit for Fiscal Year 2027 compared to the other cities in lowa for Fiscal Year 2025 with a population over 50,000: Fiscal Year 2025 Legal Debt Limit Comparison for Eleven Largest lowa Cities Rank City Legal Debt Limit Statutory Debt Percentage of Legal (5%) Outstanding 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 (FY27) $ 358,374,258 $ 119,617,156 33.38 % 4 Ankeny (FY25) $ 529,988,951 $ 97,645,000 18.42 % 3 Ames (FY25) $ 328,345,527 $ 56,710,000 17.27 % 2 lowa 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 36.33 % -vii - Page 1457 of 2358 Percent of Legal Debt Limit Utilized so�io 60% 55.67% 55.83 59.41% 51.53% 39.96% 40% 33.38% 36.33% 35.69% 20% 14.34% 15.15% 17.27% 18.42% � 0% �1 h1 �1 h1 ^1 � h1 �1 �1 �1 �1 �1 -��' �`�' ��' -��' ��' Jd``� ��L ��l' �R' �� L -��1' � � � � � � � � � � � � � ,�� O L`' ,�� o � � � �� m\ �� Q� �` ��\� o�c� ��a o�� } � o�c�� \os� Q� OJ ¢,`�� O�� \oJ �a O�� O�� a � � �• c., Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in lowa with a population over 50,000 and Dubuque is below the average of the other Cities. The average (36.33%) is 8.84°/a higher than Dubuque (33.38%). -viii - Page 1458 of 2358 Retired Debt Versus New Debt The total City indebtedness as of June 30, 2027, is projected to be $293,516,535 (33.38% of statutory debt limit). Based on the timing of projects, the City issued very little debt in FY23 ($0.48 million) and FY24 ($7.99 million), so the FY25 debt issuance was a combination of three years of debt funding for projects. In that three-year period, the City retired $60.72 million in debt and issued $84.11 million in debt. The following chart shows the amount of retired debt as compared to new debt. The new debt includes new debt issuances as well as draw downs on existing state revolving fund loans: Retired Debt Versus New Debt (In Millions) �so $71.83 �7� $60 $50 u� $45.25 � $43.13 O � $40 $34.72 $36.00 $30 �Z�.ss �Zs.2s �Z�.s2 $Zs. 29. $30. $28.91 $ $21.66 $21.97 $23.94 $23.69 $24.70 $25. $24. $25. 5•�24.84 $25.05 $25.66 �24.49 $24.31 $20 $20. ■ $18.57 4.48 7 $10 $15.23 5 .33 .00 .00 .00 .00 .00 � $6.40 •Z� .65 Cfl I� � 6� O � N M � � Cp f� op O� O � N M � � CO � � � N N N N N N N N N N M M (+') M M c'') M � � � � � � � � � � � � � � � � � � � � � LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL � Retired Debt � New Debt - ix- Page 1459 of 2358 Statutory Debt and Total Debt In August 2015, the Mayor and City Council adopted a debt reduction strategy which targeted retiring more debt each year than was issued by the City. The recommended FY 2027 budget will exceed that target in FY 2027, FY 2028, and FY 2029, and FY 2030 due to issuing necessary debt for 17th/Locust St Storm Improvements, Fire Equipment and Station Improvements, Five Flags, 14th Street Overpass, East - West Corridor Capacity Improvements, Street and Bridge Improvements, Central Avenue Corridor Improvements, Solid Waste Trucks, PFAS mitigation, Private Lead Service Lines, Catfish Creek Sewer shed Interceptor Sewer Improvements, Old Mill Road Lift Station and Force Main Improvements, WRRC Industrial Control Upgrade, Sanitary Basin Analysis in South Port and Terminal, and Park Improvements. However, Fiscal Year 2031 will meet the target. You can see that the Mayor and City Council have significantly impacted the City's use of the statutory debt limit established by the State of lowa. In Fiscal Year 2015, the City of Dubuque used 90% of the statutory debt limit. In this budget recommendation, the Mayor and City Council are currently reviewing for Fiscal Year 2027, the use of the statutory debt limit would be 33.38%, and by the end of the recommended 5-Year Capital Improvement Program (CIP) budget in Fiscal Year 2031, the City of Dubuque would be at 35.59% of the statutory debt limit. Projections out 10 years to Fiscal Year 2036 show the City of Dubuque at 23.33% of the statutory debt limit. This is an improvement on the debt reduction plan adopted in August 2015, that first began implementation in Fiscal Year 2016. Statutory Debt Limit Used (as of June 30th) 100%90°/a 87% 82% 79% 79% 0 87°0 72% 74% 70% 75/0 6% 66% 66% 60% 62°/u 53% 0 50% 47 0 44% 43% 36% 36% 34% 36% 33% 34% 35% 35% 36% 34% 32% o 29/0 26% 23% 20% 25% -% TI TI TI TI �'I T TI TI TI TI TI �'I T TI TI TI TI TI TI T TI TI TI � � � 3 j � � � � � � � � � � � � � � � � � � N N N N 1�1 N N N N N W W W W W W W W t7� O� V 00 t0 O � N W A C11 Q> �I OD �O O � N W � G7 C> �I FY16 Adopted f FY27 Recommended -x- Page 1460 of 2358 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 $337.15 million (35.59% of the statutory debt limit). Projections out 10 years to Fiscal Year 2036 show the City of Dubuque at 23.33% of the statutory debt limit or$228.14 million total amount of debt. Total Debt (In Millions) $351 $338.9 $331.0 $337. $324 $312 $302.3 $318. $297 $290.1 $293. $300. 0 $295.5 $282.0 $279.9 � $285.7 $270 �265.6 $267.4 $274.7 $275. $255.9 $264.0 $250.6 $244.3 $z41.4 $24 .6 $243 $252.1 $249.4 $237.4 $252. 31.1 $222. $216 $22s.2 $zz8.1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY16 Adopted � FY27 Recommended -xi - Page 1461 of 2358 General Fund Reserves The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses that may occur. Moody's Investor Service recommends a 35% General Fund Operating Reserve for"AA" rated cities. In January 2025, Moody's Investor Services affirmed the Aa2 credit rating on general obligation bonds. Moody's credit analysis states, "the City of Dubuque's local economy benefits from its role as a regional economic center, with solid resident income and full value per capita. Financial operations are strong and will remain so despite declines in fund balance over the next few years, as it expends funds from the pandemic. Long-term liabilities and fixed cost ratios are moderate and will remain so despite future borrowing needs." According to Moody's, the Aa2 issuer rating for the City of Dubuque's bonds reflects the city's healthy economic base, which serves as a regional economic center. Other rationale stated for the rating include full value per capita and adjusted resident income are solid at around $109,000 and 98% respectively, though weaker than Aa peers, in part because of a large student population, available fund balance was strong at around 60% of revenue at the close of fiscal 2023 (year-end June 30), and cash was stronger at 85% of revenue. 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 CurrentAssets/Revenue) and Liquidity Ratio ("LR") _ (Unrestricted Cash/Revenue). ForAa credits, AFBR ranges from 25-35, and LR ranges from 30-40%. The City was evaluated by Moody's under the old methodology in May of 2022 in connection to its annual issuance of bonds. At that time, Moody's calculated the City's AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations were likely elevated due to unspent ARPA funds. The change in methodology will now consider revenues and net assets from business-type activities in these calculations.As such, the City's general obligation rating will now be directly impacted by the financial perFormance of enterprise funds. Establishing rates and charges adequate to provide both debt service coverage and significant liquidity will be necessary to maintain the City's ratings. In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's outstanding revenue bonds from A1 to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. -xii - Page 1462 of 2358 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. . - � •- . . . . - . . . - - • ... - - - - ... .. FY 2019 29.06% Increase due to capital projects not expended before the end of the FY. Increase due to freezing vacant positions and most capital projects due FY 2020 31.24% to the pandemic. Increase due to American Rescue Plan Act funds received ($13.2 FY 2021 40.72% million), frozen positions and 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 FY 2022 49.16% 45.09% vacant 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 FY 2023 55.82% 62.99% vacant positions. FY 2024 51.19% 62.41% Decrease due to spend down of American Rescue Plan Act funds. FY 2025 40.53% 52.33% Decrease due to spend down of American Rescue Plan Act funds. FY 2026 27.00% 45.03% Decrease due to spend down ofAmerican Rescue Plan Act funds. -xiii - Page 1463 of 2358 Fund Reserve as a Percent of General Fund and Enterprise Fund Revenue New Moody's Methodology 70 65 62.99% 62.41% 60 55 52.33% 00 50 45.09% 45.03% 45.03% 45.03% 45.03% 43.60% o 45 40.72% 42.17/o U40 - - - � � 35 29.06% 31.24% 30 23.81% 25 20 15 10 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY28 FY29 FY30 FY31 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%. After all planned expenditures in FY 2026, the City of Dubuque will have a general fund reserve of 27.00% of general fund revenues as a percent of general fund revenues computed by the accrual basis or 45.03% 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 balance is projected to be $25,412,743 on June 30, 2026. The general fund reserve balance 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 on a cash basis. 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. � � � � . � i : � � � i � Contribution $4,419,668 $— $— $— $— $— $— $— City's Spendable General Fund Cash $43,826,193 $38,026,193 $25,412,743 $25,412,743 $25,412,743 $25,412,743 $25,412,743 $25,412,743 Reserve Fund Balance % of Projected 51.19% 40.53% 27.00% 27.00% 27.00% 27.00% 27.00% 27.00% Revenue (Cash Basis) -xiv- Page 1464 of 2358 State Revolving Fund Sponsorship Projects and Green Project Loans The City uses State Revolving Fund (SRF) loans for water and sanitary sewer projects whenever possible because of the very low annual interest rate based on 75% of the average daily Bloomberg BVAL General Obligation Municipal AAA ("BVAL") for the calendar month immediately preceding the effective date. In addition there is an annual servicing fee of 0.25%. The interest rate effective until March 31, 2026 is 3.15% with the 0.25% servicing fee included. In 2009, legislation was passed in lowa that allows water utilities that issue debt through the Clean Water State Revolving Fund Program to sponsor and help finance other water quality improvement (CWSRF) projects within or outside its service limits. This new funding mechanism, called Water Resource Restoration Sponsored Projects, will provide cities, counties, local watershed organizations, watershed management authorities, county conservation boards, and soil and water conservation districts a funding source to construct improvements throughout a watershed that keep sediment, nutrients, chemicals and other pollutants out of streams and lakes. This program no longer exists. Repayment of a standard Clean Water SRF (CWSRF) loan includes the repayment of the original loan amount, the principal, and the cost to finance the loan, interest, and fees. On a CWSRF loan with a sponsored project, the financing costs were reduced by the amount of the cost of the sponsored project improvements. Figure 1 shows a comparison between a standard CWSRF loan and a CWSRF loan with a sponsorship project. As shown, the total cost to the utility (the total of loan repayments) remains unchanged as the cost of funding for the sponsorship project is offset by a reduction in loan financing costs. In essence, two water quality projects are completed for the price of one. I �+ funding for Sponsorship Project c � _ v E „ � Loan Financing Costs a � I (Interest&Fees) c � 0 w � CWSRF Project Loan Principal 0 m 0 � � S�� oao a�� y�1S�`�SotSr`e�'� �t.Po`��,oa� L S�o� Q�ol �� Figure 1. Loan repayment comparison between a standard CWSRF loan and a CWSRF loan with a sponsorship project. -XV- Page 1465 of 2358 After three years of the State of lowa being unsuccessful in completing one of these modified loans, the City of Dubuque had the first successful application for the state when, in April 2013, the City was awarded $9.4 million of the interest paid on the Water and Resource Recovery Center to be used to reconstruct over 70 Green Alleys in the Bee Branch Watershed. The principal for the Water& Resource Recovery Center Upgrade was increased from $64,885,000 to $75,145,579 and the interest rate plus annual servicing fee was decreased from 3.25% to 2.00% to add the Green Alley sponsorship project. This reduction allowed for increased proceeds and resulted in a true interest cost of 1.96% and gross borrowing savings of$11.4 million. The State of lowa has discontinued the sponsored project option for future debt issuances. The Federal Fiscal Years 2010, 2011, and 2012 State Revolving Fund capitalization grants included requirements for certain percentages of the funds to be allocated for green projects. Each green infrastructure project receives a portion of loan forgiveness not to exceed 30%. In June 2015, the City of Dubuque Upper Bee Branch Creek Restoration Project (Upper Bee Branch Project) qualified for a Green Project Loan from the CWSRF Program in the amount of$29,541,000. The loan includes a principal forgiveness provision. The amount of the loan to be forgiven is 20% of the total loan disbursements made under the loan agreement. The amount of the loan that was forgiven in June 2020 was $5,908,200. The actual true interest cost for total funds received was not the 2.00% borrowing rate (1.75% interest and 0.25% administrative fee), but just 0.07% after reflecting the receipt of interest free funds (forgiven portion). Then, in August 2017, the City was awarded $1.4 million in funding for improvements with the Catfish Creek Watershed through the State of lowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Upper Bee Branch Creek Restoration Project. The funding for the $1.4 million in improvements will come from the interest payments on the City's Upper Bee Branch SRF loan. The Upper Bee Branch Creek SRF loan principal was increased to $30,941,000 and the interest rate plus the annual servicing fee was reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were $1.38 million less than the original loan. In May 2018, the City was awarded $1.0 million in funding for pervious green alley improvements with the Bee Branch Creek and Catfish Creek Watersheds through the State of lowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Upper Bee Branch Creek Railroad Culverts Project. The funding for the $1.0 million in improvements will come from the interest payments on the City's Upper Bee Branch Railroad Culvert SRF loan. The Upper Bee Branch Creek Railroad Culvert SRF loan principal was increased to $17,387,000 and the interest rate plus the annual servicing fee was reduced from 2.00% to 1.43%. On a gross basis, the borrowing costs for the new loan were $1.05 million less than the original loan. In February 2019, the City was awarded $276,300 in funding for Eagle Point Park Environmental Restoration through the State of lowa Water Resource Restoration Sponsored Project program as part of the City State Revolving Fund loan for the Kerper Boulevard Sanitary Sewer Project. The funding for the $276,300 in improvements will come from the interest payments on the City's Kerper Boulevard Sanitary Sewer SRF loan. The lowa Finance Authority now requires that sponsorship projects are included in the initial loan amount so that the repayment schedule does not have to be adjusted. On a gross basis, the borrowing costs for the new loan were $278,000 less than if there was not a sponsorship project included. The United States Environmental Protection Agency (USEPA) in the final Lead and Copper Rule Improvements (LCRI) regulations, requires all lead service lines to be removed from the system within a ten year period, effective November 1, 2027. Within 10 years all private lead water service laterals must be replaced. The total cost of a project of this magnitude exceeds $60 million for almost 4,000 total private water service laterals. On -xvi - Page 1466 of 2358 November 15, 2021, the Bipartisan Infrastructure Law (BIL) was signed by President Biden, which includes $50 billion to the Environmental Protection Agency (EPA) to strengthen the nation's drinking water and wastewater systems—the single largest investment in clean water that the federal government has ever made. The BIL funds are being administered locally through the lowa Department of Natural Resources' State Revolving Fund (lowa SRF) program, with 49% of construction costs being forgivable. The City of Dubuque is taking part in a unique opportunity to assist approximately 585 homes in three phases (owner occupied or rented)within the city with the functional replacement of private lead-water service lines by trenching or pull-through methods to prevent the potential for drinking water contamination at a house-by-house level. Phase 1 of the pilot program is 100% voluntary and is open to those residents with a verified drinking water lead service line meeting the socioeconomic guidelines established by the Bipartisan Infrastructure Law. In September 2025, the City was awarded a 0°/o interest State Revolving Fund Loan in the amount of$1,941,000 for the Private Lead Service Line Replacement Pilot Program - Phase 1. The non-premise related construction costs are 49% forgivable at the completion of Phase I.The scope of work in the first phase includes the replacement of approximately 200 lead service lines identified throughout the City's water distribution service area. The nature of the replacements will vary by site, ranging from full replacements (public water main to interior plumbing) to partial replacements (a portion of the service line between the public water main and the interior plumbing). Work will be conducted within the City's right-of-way and on private properties with authorization from property owners. Phase 2 of the Private Lead Line Replacement Program will be voluntary enrollment with a target of approximately 67 lead service lines replaced each year. It is proposed for the next 5 years the city offer help with financing and implementation for property owners who volunteer to have their lateral replaced.he city would assist with financing by accessing low interest long-term borrowing through the SRF program. Property owners would be assessed to make the payments. After that 5 year period the city would need to implement a mandatory program to meet the EPA compliance deadlines. Phase 3 of the Private Lead Line Replacement Program will be mandatory with an estimated 605 lead service lines replaced annually. The city would assist with financing by accessing low interest long-term borrowing through the SRF program. Property owners would be assessed to make the payments. Since the lead service laterals cause no issues because the city treats the water to prevent lead leaching into the water the city will continue to advocate to the federal government to eliminate the 10 year requirement. In March 2026, the State of lowa passed rules possibly allowing the City of Dubuque to obtain some forgivable SRF loan dollars to do PFAS related projects. -xvii - Page 1467 of 2358 The five-year CIP adopted through the current year (Fiscal Year 2026) budget process covered Fiscal Year 2026 through 2030 and is $351,594,553. The recommended five-year CIP for the upcoming budget process (Fiscal Year 2027) will cover Fiscal Year 2027 through 2031 and will be $352,840,562. This is a $1,246,009 (0.35%) increase. FY 2026-2030 Capital Improvement Program (CIP) compared to the FY 2027-2031 Capital Improvement Program is as follows: FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Total FY26 CIP $91,803,749 $64,823,518 $69,843,768 $74,478,605 $50,644,913 — $351,594,553 FY27 CIP — $80,633,738 $78,683,922 $87,171,890 $61,624,997 $44,726,015 $352,840,562 $ Difference — +$15,810,220 +$8,840,154 +$12,693,285 +$10,980,084 — $1,246,009 % Charlge — +24.39% +12.66% +17.04% +21.68% — 0.35% Further information about the changes to capital improvement projects can be found on pages xxii-xxxv. Fiscal Year 2027 will be the twentieth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low-to-moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2027 Stormwater User Fee is proposed to increase from $11.03 per SFU to $12.02 per SFU, a 9.00% increase. Rate Per Single Family Unit (SFU) Fiscal Year 2022 -Adopted Per Ordinance 10-21 $ 8.85 Fiscal Year 2023 -Adopted Per Ordinance 13-22 $ 9.00 Fiscal Year 2024 -Adopted Per Ordinance 14-23 $ 10.00 Fiscal Year 2025 -Adopted Per Ordinance 14-24 $ 10.50 Fiscal Year 2026 -Adopted Per Ordinance 14-25 $ 11.03 Fiscal Year 2027 - Recommended $ 12.02 The Stormwater Utility was formed on July 1, 2003, to update and expand the City's aging infrastructure, comply with the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit, and implement the various elements of the 2001 Drainage Basin Master Plan Stormwater Management Plan (amended in 2013), which outlined improvements in both the Catfish Creek and Bee Branch watersheds. The flood mitigation improvements in the Catfish Creek Watershed have been completed. The improvements in the Bee Branch Watershed are part of the multi-phased, fiscally responsible, holistic Bee Branch Watershed Flood Mitigation Project which will mitigate flooding, improve water quality, stimulate investment, and enhance the quality of life. The City's has been able to garner support from local, state, and -xviii - Page 1468 of 2358 federal partners with over$169 million in outside funding to help offset the cost of the overall $250 million project. Since 2001, the City has made steady progress on the various phases of the project. The phases of the Bee Branch Watershed Flood Mitigation Project are as follows: Phase Description Status 1 Carter Road Detention Basin Complete 2 West 32nd Street Detention Basin Complete 3 Historic Millwork District Complete 4 Lower Bee Branch Creek Restoration Complete 5 Flood Mitigation Gate & Pump Replacement Under Construction 6 Impervious Surface Reduction 1/3 of alleys converted to"Green Alleys" 7 Upper Bee Branch Creek Restoration/Railroad Culverts Complete 8 22nd Street Storm Sewer Improvements Complete from Elm Street to N. Main 9 Flood Mitigation Maintenance Facility Site Cleanup/Preparation 10 North End Storm Sewer Improvements Initiate Design in 2028 11 Water Plant Flood Protection Initiate Design in 2024 12A 17th Street Storm Sewer Improvements Complete from Elm St. to Heeb St. 12B 17th Street/W. Locust Street Reconstruction Complete Design in '26, Construct in `27 Each of the 12 phases provides some incremental benefit. But the risk of flash flooding remains until all improvements are implemented. But it is also true that with the completion of each subsequent phase, the threat of flash flood damage is lessened and the resulting damage will be mitigated. When complete, it is expected to prevent an estimated $582 million in damages over its 100-year design life. When the City Council adopted Ordinance 21-12 (passed and approved on March 7, 2012), they established that the stormwater utility fee would increase to $9.00 per month on July 1, 2016 in order to fund the operational and capital costs of the public stormwater management system, including improvements such as the Bee Branch Creek Restoration Project. But later in 2012, the lowa General Assembly created the Flood Mitigation Program which provides funding for flood mitigation projects undertaken by local governments such as the City of Dubuque. Managed by the lowa Flood Mitigation Board, the funding source established involves taking a portion of the incremental growth of State sales tax revenue collected within a city and diverting from the State General Fund to cities approved for the funding. Having updated the Drainage Basin Master Plan in the fall of 2013, which outlined the improvements associated with the 12-phase Bee Branch Watershed Flood Mitigation Project, the City was successful in securing $98.5 million in State sales tax increment funding. With the infusion of funding, the City Council adopted Ordinance 16-14 (passed and approved on March 5, 2014) establishing that the stormwater utility fee did not reach $9.00 per month until July 1, 2021, five years later than later than previously scheduled. -xix- Page 1469 of 2358 The CIP budget reflects the Dubuque Five-Year (2025-2027) City Council Goals and 2025-2027 Policy Agenda, established by the City Council August, 2025. Dubuque Five-Year City Council Goals Healthy and Safe Community Financially Responsible, High Performance City Organization: Sustainable and Effective Service Delivery Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity Livable Neighborhoods and Housing: Great Place to Live Sustainable Environment: Preserving and Enhancing Natural Resources Connected Community: Equitable Transportation, Technology, Infrastructure, and Mobility Diverse Arts, Culture, Parks, and Recreation Experiences and Activities Policy Agenda 2025 -2027 Top Priority (in alphabetical order) • Commercial Air Service Future: Strategy an Action Plan to Sustain and Expand • Comprehensive Fire Station Location and Facilities Study • Fire Department Staffing Increases • Police Department: Full Staffing and Hiring • Sanitary Sewer Investments and Implementation • Sports Complex Development • Stormwater Management Investments and Implementation • Street Maintenance/Rehabilitation Program High Priority • Continued Implementation of Central Avenue Revitalization Plan • Downtown Master Plan Update • Dubuque Law Enforcement Center (DLEC) Short-Term Facility Enhancements and Future Plan • East-West Corridor/Roundabouts Projects • Next Phases of Chaplain Schmitt Island Development • Parks and Recreation Master Plan Adoption and Implementation • Water Resource and Recovery Center Facility and Process Improvements and Odor Reduction Attachment 3 provides a summary of these projects organized by City Council's five-year goals and Fiscal Year 2027 priorities reflect how these goals are addressed. Finally, Attachment 4 provides detail on the source of funds and highlights important points about the 5-year CIP Program. -xx- Page 1470 of 2358 CIP FORMAT The format for the Fiscal Year 2027-2031 CIP is substantially the same as previous fiscal years. First, an index referencing the 2027-2031 Capital Improvement Budget follows the budget message. The index identifies each capital improvement first by city department and then by all applicable State programs as a subcategory under each department. The index serves as a quick reference for each CIP, and the far right hand column shows the page number of each project. Secondly, a separate project page is provided to show the detail for each individual project. These projects pages are also arranged first by city department and then by State program as a subcategory within each department. As in previous CIP budget documents, each detailed project page identifies the city department, the state program, project title, account code (consisting of program number, department number, fund and capital project number), and total project cost. The project page then shows any funds expended for the project in Fiscal Year 2025 and the adopted budget in Fiscal Year 2026. In Section A of the project form entitled "Expenditure Items", project costs are shown by major expenditure item (i.e., Design and Engineering, Land and Right-of-Way Purchase, Construction and Other Expense). In Section B, entitled "Project Financing", the project funding is presented by major revenue source (i.e., General Fund, Sales Tax Fund, Water Depreciation Fund, Sanitary Sewer Construction Fund, and Road Use Tax Fund). In Section C, entitled "Impact— Operations," the dollar impact on operations in terms of greater or lesser operating costs and/or greater or lesser revenue is provided when available. Lastly, there is a narrative section, which provides a description of the project, a justification for the project and, where appropriate, how it relates to other projects or plans. A small map may also be provided to further identify the location of the project. Each detailed project page identifies the budget for each fiscal year in the next five years. There is a sixth column labeled "2032". This column is included to show that the project does not end in the next five years and that additional budget will be needed to fully complete the project. The "2032" column will show the total remaining estimate for the project, unless the project is annual. This column could also be known as "Beyond Fiscal Year 2031." If a project is annual, the "2032" column will only show one years worth of budget. Lastly, there is a section in the detailed project pages called "First Year Submitted". This information represents the year the capital improvement project was first submitted for consideration. This is not the first year that the capital project was adopted for funding, but instead represents the first year a staff member identified a need for the project and created a CIP to present to the City Manager. -xxi - Page 1471 of 2358 CONCLUSION The Capital Improvement Program represents the City of Dubuque's commitment to a maintenance and physical development plan for the next five years. The first year of the five-year CIP goes into the budget for next year and deserves the most attention.As you know, the CIP is updated each year so that City Council will have an opportunity in the next year to change Fiscal Year 2028 through Fiscal Year 2031 projects, as well as to add projects for Fiscal Year 2032. A ranking system was established in Fiscal Year 2019 to more readily identify capital projects that directly meet City Council Goals and Priorities and address City needs. This ranking process also included several collaborative meetings with staff to determine which projects should be recommended for funding with the limited resources available. Notable FY2027 Capital Improvement Projects Total City Investment Department Project Title FY2027-FY2031 Page Fire Outdoor Warning Siren Repair/Replace $54,000 5 Fire Fire Station Expansion $8,791,700 6 Fire 2027 Ambulance Replacement (1914) $500,000 9 Fire Portable Radio Replacements $490,000 12 Fire 2030 Fire Engine Replacement (1910) $1,288,408 13 Fire 2030 Ambulance Replacement (1915) $635,000 14 Fire 2031 Ambulance Replacement (130010) $665,000 15 Parks Jeffris Grant $2,060,394 22 Civic Center Five Flags Building Improvements $5,844,678 29 Conference Center Roof Restoration $1,383,000 44 Water 17th/Locust Street Reconstruction Phase 4 $1,110,000 48 Water Admiral Sheehy Drive Water Main Loop $686,400 49 Water Central Ave Booster Station $1,020,000 50 Water Water Main Extension Central Ave $965,000 52 Highway20/Dodge St Water Main Relocation - Devon Drive to Water Concord St $1,000,000 69 Water Private Lead Line Replacement Program $1,050,000 79 Water Private Lead Service Line Replacement Program $4,050,000 81 Source Water PFAS Reduction Project - Granular Activated Carbon Water Filter Rehabilitation $10,900,000 86 -xxii - Page 1472 of 2358 Total City Investment Department Project Title FY2027-FY2031 Page Water Source Water PFAS Reduction Project $1,121,199 87 Water Water Meter Replacement Program $687,750 96 Water Water Storage Maintenance Program $3,336,000 97 Water West End Annexation Phase II $2,000,000 101 Water Southwest Arterial 16" Water Main Extension $2,475,000 104 W&RRC Bar Screen Replacement $2,500,000 107 WRRC Plant Nutrient Reduction Improvements and BOD/Flow W&RRC Capacity Improvements $1,535,000 109 W&RRC Industrial Controls Upgrade $6,114,700 111 Treatment System Infrastructure Restoration & Reliability W&RRC Improvements $2,047,550 123 Airport Reconstruct Taxiway A $9,969,994 128 Airport Asphalt Pavement Repair/T-Hangar Apron Rehabilitation $950,000 130 Airport Taxiway D Extension $2,940,000 133 Airport Taxiway J Improvements $7,145,600 134 Public Works Asphalt Milling Program $873,547 135 Public Works Curb Ramp Program $4,883,000 136 Publics Works Concrete Street Section Repair Program $1,641,038 139 Public Works NW Arterial Should Paving Project $2,311,247 145 Engineering Storm Sewer General Replacements $1,500,000 209 Engineering Stormwater Management Program $800,000 211 Engineering Detention Basin Maintenance & Repair $1,000,000 216 Engineering Bee Branch Creek Gate & Pump Replacement $5,121,112 220 Engineering 17th/Locust Street Reconstruction Phase 4 $5,300,000 223 Engineering Old Mill Road Lift Station & Force Main - Phase 1 $1,009,221 235 Engineering Old Mill Road Lift Station & Force Main - Phase 2 $6,978,630 237 Engineering Old Mill Road Lift Station & Force Main - Phase 3 $19,891,034 239 Engineering Old Mill Road Lift Station & Force Main - Phase 4 $19,506,258 241 Engineering Schmitt Island Sanitary Improvements $4,415,252 243 Engineering Sanitary Basis Analysis - South Port &Terminal St LS $10,800,000 253 Engineering Track Line Sanitary Sewer Reconstruction $3,500,000 257 -xxiii - Page 1473 of 2358 Total City Investment Department Project Title FY2027-FY2031 Page Engineering 14th St Overpass $36,144,000 264 Central Avenue Corridor Streetscape Master Plan Implementation Engineering Improvements 11th - 22nd Street $9,770,000 266 US 20 - Northwest Arterial Intersection Operational and Capacity Engineering Improvements $6,000,000 268 Engineering East - West Corridor Capacity Improvements $18,600,000 269 Engineering 17th/Locust Street Reconstruction Phase 4 $4,765,000 280 Engineering Bridge Repairs/Maintenance $2,640,000 288 Engineering Fiber Infrastructure Management System $330,000 309 Engineering Traffic Signal Network Communications Program $445,000 325 Engineering STREETS Traffic Control Project Phase 2 $1,029,000 332 Engineering Federal Building Renovation $5,395,000 334 Economic Development Downtown Rehab Grant Program $1,700,000 338 Economic Development Workforce Development $1,857,500 342 Transportation Smart Parking System $780,000 344 Transportation Parking Ramp Major Maintenance Repairs $5,997,200 345 Housing Assistance for Homeownership $1,026,082 348 Housing Homeowner Rehabilitation Program $2,476,588 350 Housing Healthy Homes Production Grant $1,326,250 353 Housing Lead and Healthy Homes Grant $3,136,600 355 Community Green House Gas Inventory and Climate Action City Manager's Office Planning $50,000 358 Information Technology City-Wide Computer and Printer Replacements - General Gov $3,132,759 368 Information Technology Network Switch Replacement $607,500 364 Information Technology City-Wide Computer and Printer Replacements- Business $361,906 372 -xxiv- Page 1474 of 2358 There are many capital projects that have been added to meet City Council Goals and Priorities and address City needs ($87,131,865). Those new projects that appear in the five-year CIP are as follows: Department New Project Total CIP Police DLEC Upgrades and Maintenance $ 208,300 Fire Install HVAC Systems at Fire Station 5 and 6 $ 100,000 Parks Chaplain Schmitt Island Environmental Restoration $ 430,000 Parks Eagle Point Park/Jeffris Grant $ 2,060,394 Parks Eagle Point Park Master Plan $ 165,000 Parks Park Office - Replace Roof $ 12,000 Parks Trail Maintenance/Repair $ 100,000 Parks Mechanic Shop-Replace Roof $ 35,000 Recreation Community Center Master Plan $ 80,000 Recreation Bunker Hill Administrative Office Lead Remediation Project $ 30,000 Recreation Bunker Hill Basement Leak Repair and Planter Box Removal $ 30,000 Recreation F&S Site Repair/Replacement-Leak Repair $ 30,000 Recreation Marina-Dock Fuel & Electrical System $ 50,000 Conference Center HVAC System Evaluation $ 35,000 Water 8th St 20" Transmission Water Main Connection (Jackson to Central) $ 277,000 Water 17th/Locust Street Reconstruction Phase 4 (Heeb to Kirkwood) - Water $ 1,110,000 Water Admiral Sheehy Drive Water Main Loop $ 686,400 Water Central Avenue Booster Station $ 1,020,000 Central Ave and White St Water Utility Improvements for the Traffic Water Study Implementation Plan $ 245,000 Water Water Main Extension Central Ave (Pressure Zone 2 and 5 Connection) $ 965,000 Water Water Distribution System Master Plan $ 200,000 Water Distribution System Regulatory Monitoring/Flushing Stations $ 150,000 Water Water District Metered Zone (DMZ) Pilot $ 180,000 Eagle Point Water Treatment Plant Lime Sludge Drain Sediment Trap - Water Water $ 50,000 Water Eagle Point Water Treatment Plant Railroad Building Study $ 20,000 Water Greeley St Sanitary Sewer Reconstruction - Water $ 205,000 Grove Terrace Sanitary Sewer Reconstruction (Consent Decree) - Water Water $ 130,000 -xxv- Page 1475 of 2358 Department New Project Total CIP Water Harvard St Sanitary Sewer Reconstruction (Consent Decree) - Water $ 140,000 Hempstead St Sanitary Sewer Reconstruction (Consent Decree) - Water Water $ 320,000 Water Hwy 20/Dodge St Water Main Relocation - Devon Drive to Concord St $ 1,000,000 Water Water Distribution System Hydraulic Modeling $ 50,000 Water JFK Tower Interior Piping and Expansion Joint Replacement $ 50,000 Water Leak Detection Survey $ 130,000 Water North Grandview Ave Water Repairs $ 80,000 Water Main Extension Olympic Heights Rd (Pressure Zone 3 and 5 Water Connection) $ 617,000 Water Water Main Extension Pennsylvania Ave (Annex Agreement WM A) $ 545,000 Water Private Lead Service Line Replacement Program (City-Wide) $ 4,050,000 Water Rockdale Road Reconstruction (Old Mill to Twin Valley Drive) - Water $ 400,000 Water Main Extension Seippel Rd and Pennsylvania Ave (Annex Water Agreement WM B) $ 585,000 Source Water PFAS Reduction Project-GranularActivated Carbon Filter Water Rehabilitation $ 10,900,000 Water South Algona 12" Water Main Replacement (St Joseph to Lombard St) $ 793,000 Water Water Repairs Sunnyslope Street Project $ 390,000 Water Water Main Replacement W 8th St (Bluff St to Hill St) $ 395,000 Water Safety Equipment for Water Distribution Staff $ 57,600 Water Water Treatment Plant South Plan Flow Meter Replacement $ 60,000 Southwest Arterial (Key West Drive to Silverwood Drive) 16" Water Main Water Extension $ 2,475,000 Water & Resource Recovery Center WRRC Compressed Air System Improvements $ 69,500 Water& Resource Process Control Instrumentation Improvements - Dissolved Oxygen Recovery Center Monitoring $ 135,000 Water & Resource Recovery Center WRRC Influent and Effluent Monitoring Improvements $ 40,000 Water& Resource WRRC Treatment System Infrastructure Restoration and Reliability Recovery Center Improvements $ 2,047,550 Water & Resource Recovery Center WRRC Safety Program Development $ 106,000 Airport Taxiway D Extension (formerly Taxiway H) $ 2,940,000 -xxvi - Page 1476 of 2358 Department New Project Total CIP Airport Taxiway J Improvements $ 7,145,600 Public Works Tri-top Catch Basin Replacement Project $ 335,162 Public Works Municipal Services CenterAccess System Replacement $ 85,000 Public Works Municipal Services Center Fleet Maintenance Bay Extension $ 100,000 Public Works NW Arterial Shoulder Paving Project $ 2,311,247 Public Works Hawthorne Street Boat Ramp Repair $ 407,532 Public Works 3255 - Wheel Loader Purchase $ 305,865 Public Works 2730 - Portable Jet $ 50,000 Public Works Mechanical Sweeper Replacement $ 290,466 Public Works New CCTV Camera $ 40,000 Public Works 2727-Off-Road Vehicle $ 25,000 Public Works Off Road Vehicle CCTV Slide-in Unit $ 145,000 Public Works Fleet Service Sweeper $ 25,000 Landfill Landfill Permit Renewal Project $ 55,204 Landfill Landfill Website Redesign Project $ 20,000 Landfill Landfill Alternative Energy Project $ 50,000 Landfill 3C Wheel Loader $ 275,000 Landfill Sweeper $ 95,000 Landfill Brush Mower $ 15,000 Landfill 3451 Hook Truck $ 335,223 Landfill Water Truck $ 200,000 Engineering Confined Space Drone $ 100,000 Engineering General Stormwater Detention Basin Maintenance & Repair $ 1,000,000 Engineering Schmitt Island Stormwater Rehabilitation $ 450,000 17th/Locust Street Reconstruction Phase 4 (Heeb to Kirkwood) - Engineering Stormwater $ 5,300,000 Engineering North Catfish Creek Trail Stabilization $ 500,000 Engineering Pebble Cove Drainage Basin Improvements $ 240,000 Engineering Harvest View Storm Sewer Improvements $ 320,000 Engineering Primrose Court Storm Sewer Repair $ 120,000 Engineering Manhole Inspection Equipment (2 Cameras) $ 28,000 Engineering Kerper Boulevard Sanitary Sediment Trap $ 80,000 -xxvii - Page 1477 of 2358 Department New Project Total CIP Engineering JFK Yiannias Place Sanitary Sewer Relocation $ 550,000 Engineering Key West Sanitary Lift Station Replacement $ 1,535,000 Sanitary Basin Analysis - Steger Heights Area (SSAMP Service Area Engineering 3-8-1-1) $ 1,540,000 Sanitary Basin Analysis - Quigley's Sub Area (SSAMP Service Area Engineering 3-8-0-1 B-1) $ 1,520,000 Engineering Sanitary Basin Analysis - South Port &Terminal St LS $ 10,800,000 17th/Locust Street Reconstruction Phase 4 (Heeb to Kirkwood) - Engineering Sanitary $ 1,100,000 US Highway 20 - Northwest Arterial Intersection Operational and Engineering Capacity Improvements, lowa Department of Transportation $ 6,000,000 Engineering 17th/Locust Street Reconstruction Phase 4 (Heeb to Kirkwood) - Street $ 4,765,000 Engineering Port of Dubuque Streets Extension $ 100,000 Engineering Safe Routes to School $ 120,000 Engineering NW Arterial Trail Drainage $ 150,000 Engineering Pedestrian Safety with Permanent Bollards/Barricades $ 152,000 Engineering Way finding Signage $ 40,000 Engineering Chavenelle Street Light Replacement Project $ 182,850 Engineering lowa St Streetlight Replacement Project $ 138,000 Engineering City Hall - Radon Mitigation System $ 161,000 Economic Development Downtown Storefront Activation Program $ 400,000 Planning Downtown Master Plan Update $ 150,000 City Manager's Office Municipal Solar Project- MFC $ 176,300 City Manager's Office Municipal Solar Project- Library $ 122,672 TOTAL $ 87,131,865 -xxviii - Page 1478 of 2358 The Capital Improvement requests that were previously funded in the five-year CIP that are not included in this five-year CIP total $8,619,951. To put these back into the five-year CIP, other projects will need to be removed, property taxes would need to be raised and/or more debt would need to be issued. The removed CIPs are as follows: Department Existing Project Not Funded Total CIP Fire Fire Department Bunk Room Remodel(s) $ 1,489,918 Parks Eagle Point Park - Riverfront Pavilion Restoration $ 230,000 Parks All Parks - Renovate Water Systems $ 57,000 Parks Eagle Point Park - Restroom Renovation $ 124,900 Parks Eagle Point Park - Stone Work $ 105,000 Parks Eagle Point Park - Renovate Log Cabin $ 60,000 Recreation Sutton Pool Zero Depth Survey & Remediation $ 60,000 Conference Center Banquet Chair Replacement $ 313,500 Conference Center Paint Exterior Metal $ 132,000 Conference Center Concrete Restoration, Raising & Caulk $ 240,000 Conference Center Replace Fabric Wall Covering $ 227,000 Conference Center Replace Carpet $ 485,000 Library Library Landscaping and Plaza Redesign $ 103,601 Water & Resource Recovery Center High Strength Waste Receiving and Storage $ 939,984 Engineering Pine Street Extension from 7th to 9th $ 1,980,000 Engineering Decorative Concrete Maintenance Program $ 300,000 Engineering Hillcrest Road Sidewalk $ 250,000 Engineering Port of Dubuque Security Camera Expansion $ 60,000 Engineering City Facility Integrated Access Control and Security System Upgrade $ 270,126 Engineering City Hall Landscape Enhancement Project $ 29,500 Housing & Community Development Washington Neighborhood Homebuyer Program $ 952,422 Planning Historic Preservation Technical Assistance Program $ 110,000 City Manager's Office Municipal Energy Reinvestment Fund $ 20,000 City Manager's Office Renew DBQ: Low-Income Solar Pilot Project $ 80,000 Total $ 8,619,951 -xxix- Page 1479 of 2358 As is the case every year, there were new projects requested that were not able to be included in whole or in part in this five year CIP ($67,599,429). CIP requests that were not funded include: Department New Project Not Funded Total CIP Police Rescue Vehicle $451,829 Fire Fire Department Dock/Boathouse $450,000 Update Hendrix Storage Building 880 Central (LOT Fire 1024482020) $510,000 Fire Kitchen Remodel at Fire Station 2 $187,500 Parks Pebble Cove Park Development $360,000 Parks Second Dog Park Planning $60,000 Parks Ham House Improvements $90,000 Parks Murphy Park-Bennett Pavilion Roof Replacement $165,000 Parks Hillcrest Park - Replace Play Unit $225,000 Parks Allison Henderson - Replace Roof $20,000 Parks EB Lyons Carpet Replacement $85,000 Parks Silver Oaks Park Development $320,000 Parks Ecological Restoration $50,000 Parks EB Lyons Center- Stain, Patio, Ridge Beam $170,000 Parks Chaplain Schmitt Island-Landscaping $50,000 Parks Chaplain Schmitt Island-Entrance Sign $72,500 Parks Flora Park-Tennis Courts Replace Lights/ADAAccess $225,000 Parks Ham House Exterior Repairs $135,000 Parks Hilltop Park - Replace Play Unit $221,000 Parks Marshall Park - Replace Play Unit $230,000 Parks Teddy Bear Park - Play Equipment $205,000 Parks Paint Railings $60,000 Grandview Avenue Boulevard Landscape Renovation Parks Plan $83,000 Parks North Fork Trail Park Development $305,000 Eagle Point Park -Accessible Walkway to the Log Cabin Parks Pavilion $405,000 Parks Eagle Point Park Trail Project- Invasive Remediation $93,000 Parks Eagle Point Park - Light Trolley Line Trail $165,000 Parks Eagle Point Park - Native American Room Restoration $122,000 -xxx- Page 1480 of 2358 Department New Project Not Funded Total CIP Eagle Point Park - Develop Wading Pool Replacement Parks Plans $440,000 Parks Valley High Park - Replace Play Unit $210,000 Parks Pinard Park-Replace Playground $194,000 Parks Linwood Cemetery-Assessment $110,000 Parks Pave Parking Lots $95,000 Murphy Park - Replace Roof on Rest Room Building by Parks the Tennis Courts $17,000 Parks EPP-Replace Roof on Eagles View Pavilion $56,000 Parks Greenhouse Shop Roof Replacement $75,000 Parks Forestry Building - Replace Roof $87,000 Parks HWY 20 Trees/Invasive Removal $55,000 Chaplain Schmitt Island Campground Entrance Parks Enhancement $52,500 Parks EB Lyons Center- Roof Rehabilitation $60,000 Parks Comprehensive Street Tree Inventory $250,000 Parks Network Switches - Parks $25,000 Parks HVAC Upgrade - Greenhouse $15,000 Parks HVAC Upgrade - Forestry $25,000 Parks Mini Track Loader $58,000 Parks Park Signage Study $55,000 Parks Trail Connection Study $60,000 Flora and Sutton Swimming Pools Site Repair/ Recreation Replacement- Shade Structures $125,000 Flora and Sutton Swimming Pools Site Repair/ Recreation Replacement-Diving Boards $70,000 Flora and Sutton Swimming Pools Renovate Locker Recreation Rooms $726,000 Flora and Sutton Swimming Pools Water Playground Recreation Replacements $315,000 Recreation Flora & Sutton Pool Operational Projects - Electrical $50,000 Recreation F&S Pool Operations - UV Replacement $85,000 F&S Pool Operations - Chemical Distribution System Recreation Replacement $60,000 -xxxi - Page 1481 of 2358 Department New Project Not Funded Total CIP Recreation F&S Pool Operations - Water Slide Pump Replacements $85,000 Recreation Bunker Hill Golf Course - Range Project $230,000 Recreation Bunker- Sand Trap Repair/Removal $50,000 Recreation Port of Dubuque - Signage Replacement $20,000 Recreation Comiskey Building Restroom Expansion $112,500 Recreation McAleece Irrigation Renovation $100,000 Recreation Marina Dock Pedestal Replacements $75,000 Marina Gas Dock Fuel Tank Monitoring System Recreation Replacement $19,000 Recreation McAleece Scoreboard Replacements $36,000 Recreation McAleece Softball Field Repair $54,000 Recreation Flora & Sutton Pool Water Slide Complete Restoration $470,000 Recreation Mobile Special Event Trailer $37,000 Recreation Parks & Recreation Fee Study $35,000 Conference Center Security Camera System $175,000 Conference Center Furniture and Decor Replacement $84,000 Conference Center Wi-Fi Upgrades $99,000 Conference Center Access Control System $55,000 Conference Center Elevator Passenger and Freight Car Replacement $267,500 Conference Center AV Rental Upgrades $32,500 Conference Center Trash Compactor Rehab $38,000 Conference Center Window Panel Replacements $20,300 Ice Center Security Camera System Replacement $216,000 Ice Center Ice Resurfacer Refurbish $62,500 Ice Center Locker Room Ventilation Replacement $429,050 Ice Center ASME Storage Tank Replacement $13,750 Ice Center New Northwest Corner Service Bar $271,000 Ice Center TPO Roof Replacement $191,500 Ice Center Addition-New Women's Locker Room $40,500 Library Bookdrop Waterproofing $59,740 Library 3rd Floor Mechanical Room Water Pipe Replacements $140,195 Library Refrigerant Leak Detection Upgrade $21,360 -xxxii - Page 1482 of 2358 Department New Project Not Funded Total CIP Library Rear Exterior Painting $38,588 Library Sidewalk ReplacementAround Library $113,191 22nd/Kaufmann Street Reconstruction Phase 4 (Main to Water Kane) - Water $2,400,000 Water Greeley St Sanitary Sewer Reconstruction - Water $205,000 Airport Terminal Apron Lighting Conversion $43,000 Airport Westside Airfield Development $1,179,000 Airport AFFF Transition Plan $258,400 Public Works Vacuum Street Sweeper Replacement $361,613 22nd/Kaufmann Street Reconstruction Phase 4 (Main to Engineering Kane) - Stormwater $10,605,000 Engineering N Booth St Property Acquisition $1,000,000 22nd/Kaufmann Street Reconstruction Phase 4 (Main to Engineering Kane) - Sanitary $2,570,000 Engineering N.Grandview - Kane to W. 32nd Reconstruction $2,100,000 Engineering Embassy West Dr. and Camelot Dr. Reconstruction $1,800,000 Engineering Sunnyslope Dr. and Hummingbird Dr. Reconstruction $1,770,000 N.Star Dr. - Long View Dr. -Angel View Dr. - Little Valley Engineering Dr. Reconstruction $1,890,000 Colonel Dr. - Camelot Dr. East of Embassy West Dr. Engineering Reconstruction $1,940,000 Pennsylvania Ave. Reconstruction - Sandpiper Ln. to Engineering Bergfeld Trail $5,820,000 Engineering Kerper Blvd Trail (12th - 16th) $425,000 Engineering Cedar Cross Road Reconstruction $5,000,000 22nd/Kaufmann Street Reconstruction Phase 4 (Main to Engineering Kane) - Street $10,070,000 Engineering Mobility Improvements Implementation $144,000 Engineering Port of Dubuque Recognition Wall $40,000 Engineering City Hall First Floor Renovation $588,138 Engineering City Hall Annex Renovation $993,775 Engineering Traffic CenterAux Cooling $15,000 Engineering Old Engine House - Rock Fall Protection $55,000 Engineering City-wide Facilities Assessment $110,000 -xxxiii - Page 1483 of 2358 Department New Project Not Funded Total CIP Engineering City Hall Elevator Modernization $161,000 Economic Development Arts & Culture Master Plan Update $100,000 Economic Development Greater powntown Infill Housing Creation Grant Program $2,500,000 Information Technology Enterprise Firewall Replacement $212,000 Information Technology IT Office SecurityAlarm $50,000 Information Technology Data Center Second UPS $350,000 Information Technology Data Center Cabinet Card Access Controls $65,000 Information Technology Data Center Second Generator $150,000 Information Technology JOTC AV Equipment Replacement $50,000 Total $67,599,429 The CIP budget is the product of the hard work of a large number of people. It begins with department and division managers and their staff who prepared, ranked and updated the CIP requests. It extends to Boards and Commissions who review staff's recommendations and make modifications and establish priorities. I wish to express my thanks to all who were involved in preparing the Fiscal Year 2027-2031 version of the City's Capital Improvement Program. Special thanks go to Chief Financial Officer Jennifer Larson; Budget Manager Laura Bendorf; Budget/Financial Analysts Shannon Soppe, Nikesh Shah, and Nathan Kelleher;Assistant City Manager Cori Burbach, Executive Assistant, Stephanie Valentine;Administrative Assistant Mia Burbach; Finance A/R &A/P Clerk, Kaia Humpal. I am proud of the work completed by City staff and the end-result. I hope after you have had an opportunity to review this document that you feel it is responsive to your priorities. -xxxiv- Page 1484 of 2358 ATTACHMENTS - PROVIDE OVERVIEW OF THE FISCAL YEAR 2027-2031 CAPITAL IMPROVEMENT PROGRAM Attachment 1 FISCAL YEARS 2027-2031 CIP SOURCE OF FUNDS To finance the CIP projects, a variety of funding sources are used. The following table shows the source of funds for each year of the 5 year CIP. SOURCE OF FUNDS 2027 2028 2029 2030 2031 TOTAL PERCENT IN CAPITAL BUDGET Current Revenue Rental Dwelling Rehab Loan Repayments 15,000 15,000 15,000 15,000 - 60,000 0.02 % Homeownership Loan Repayments 5,000 5,000 5,000 5,000 - 20,000 0.01 % Historic Preservation Loan Repayments 7,000 5,000 5,000 5,000 - 22,000 0.01 % Washington Neighborhood Loan Repayments 30,000 30,000 30,000 30,000 30,000 150,000 0.04 % Insurance and Other Reimbursements 10,000 10,000 10,000 10,000 10,000 50,000 0.01 % Golf Revenue 40,000 10,000 - - - 50,000 0.01 % Subtotal Current Revenue 107,000 75,000 65,000 65,000 40,000 352,000 0.10 % Cable TV 1,700 1,900 3,600 - 1,700 8,900 0.00 % Internal Service Funds-City Garage 286,950 1,950 6,750 1,950 25,950 323,550 0.09 % Landfill Fund 1,479,181 530,519 714,726 1,266,601 852,640 4,843,667 1.37 % Transit Fund 408,660 1,580 11,590 - - 421,830 0.12 % Parking Enterprise Fund - 14,154 22,810 8,500 8,500 53,964 0.02 % Solid Waste Collection - 6,000 14,800 6,000 6,000 32,800 0.01 % Sanitary Sewer Utility 14,067,774 2,000,000 2,400,000 2,600,000 3,250,000 24,317,774 6.89 % Stormwater Utility Fees 1,534,120 1,130,620 1,765,062 1,127,800 931,520 6,489,122 1.84 % Water Utility Fund 4,174,231 3,623,407 1,793,632 2,312,622 1,676,919 13,580,811 3.85 % Current Revenue-Utility/Enterprise 21,952,616 7,310,130 6,732,970 7,323,473 6,753,229 50,072,418 14.19 % Fund Balance 736,154 925,575 - - - 1,661,729 0.47 % Sales Tax 20% - 593,137 251,144 - - 844,281 0.24 % Sales Tax 30% 4,781,919 3,915,181 3,111,765 2,573,317 2,035,640 16,417,822 4.65 % SRF Bonds-Water Fund Abated - 7,302,707 11,563,870 6,806,000 2,055,000 27,727,577 7.86 % SRF Bonds-SewerFundAbated 12,232,834 17,579,781 17,132,176 12,669,824 8,500,197 68,114,812 19.30 % SRF Bonds-Stormwater Abated 1,355,000 1,495,000 1,270,000 - - 4,120,000 1.17 % GO Bonds- Solid Waste Collection 460,000 463,250 408,879 640,544 766,500 2,739,173 0.78 % GO Bonds- Debt Service Levy - 250,000 900,000 4,000,900 3,540,800 8,691,700 2.46 % GO Bonds-Sales Tax 20% 3,031,499 387,864 1,100,000 2,246,204 2,874,908 9,640,475 2.73 % GO Bonds-Sales Tax 30% 3,400,000 10,600,000 8,875,000 7,600,000 6,800,000 37,275,000 10.56 % GO Bonds-GDTIF 6,100,000 5,055,000 4,005,000 2,030,000 1,300,000 18,490,000 5.24 % -xxxv- Page 1485 of 2358 SOURCE OF FUNDS 2027 2028 2029 2030 2031 TOTAL PERCENT IN CAPITAL BUDGET Total Construction 32,097,406 48,567,495 48,617,834 38,566,789 27,873,045 195,722,569 55.47 % Community Development Funds 650,000 650,000 450,000 450,000 200,000 2,400,000 0.68 % Federal Aviation Administration Total 7,244,995 1,728,000 90,000 5,927,040 3,150,000 18,140,035 5.14 % Healthy Homes Production Grant 700,000 426,250 - - - 1,126,250 0.32 % OlderAdult Home Modification Grant 395,200 195,200 - - - 590,400 0.17 % Federal Assistance 8,317,723 10,959,866 18,417,025 3,835,392 3,821,600 45,351,606 12.85 % Federal Lead Paint/ Healthy Homes 1,900,000 1,036,600 - - - 2,936,600 0.83 % Federal--STP Funds 1,269,145 2,045,072 9,559,229 1,972,007 - 14,845,453 4.21 % Total Federal 20,477,063 17,040,988 28,516,254 12,184,439 7,171,600 85,390,344 24.20 % lowa Finance Authority 253,317 253,317 253,317 253,317 0 1,013,268 0.29 % Road Use Tax 944,921 670,610 525,250 473,250 560,196 3,174,227 0.90 % State Flood Mitigation Grant 50,000 - - - - 50,000 0.01 % State Airport Grant 100,000 547,500 300,000 - - 947,500 0.27 % Other State Funding- IDOT&Trails Grants 1,315,000 355,000 225,000 525,000 25,000 2,445,000 0.69 % Total State 2,663,238 1,826,427 1,303,567 1,251,567 585,196 7,629,995 2.16 % DRA-Distribution of Surplus - - - - - - 0.00 % Total DRA - - - - - - 0.00 % Greater powntown TIF Payments 2,403,530 2,880,508 63,330 327,330 773,100 6,447,798 1.83 % English Ridge Housing TIF Payments - - - - - 0 0.00 % Rustic Point Housing TIF Payments 154,017 152,561 150,540 148,459 - 605,577 0.17 % South Pointe Housing TIF - - - - - 0 0.00 % Dubuque Industrial West TIF Payments 102,600 47,750 32,500 - - 182,850 0.05 % Total TIF Funds 2,660,147 3,080,819 246,370 475,789 773,100 7,236,225 2.05 % Private Participation 164,768 266,563 1,168,395 1,196,440 1,098,345 3,894,511 1.10 % Total Private 164,768 266,563 1,168,395 1,196,440 1,098,345 3,894,511 1.10 % Homeownership Sale Proceeds 100,000 100,000 100,000 100,000 - 400,000 0.11 % Ind. Parks Land Sales- Dubuque Industrial Center West 371,500 371,500 371,500 371,500 371,500 1,857,500 0.53 % Total Land Sales 471,500 471,500 471,500 471,500 371,500 2,257,500 0.64 % Special Assessments 40,000 45,000 50,000 90,000 60,000 285,000 0.08 % Total Spec. Assessment 40,000 45,000 50,000 90,000 60,000 285,000 0.08 % GRAND TOTAL 80,633,738 78,683,922 87,171,890 61,624,997 44,726,015 352,840,562 100.0 % -xxxvi - Page 1486 of 2358 Attachment 2 FISCAL YEAR 2027 -2031 CIP BUDGET GROUPED BY STATE PROGRAMS The Fiscal Year 2027-2031 Capital Improvement Program totals $352,840,562. The following table summarizes expenditures for each State program by year. FISCAL YEAR 2021-2025 CIP CAPITAL IMPROVEMENT PROGRAM 5YEAR PERCENT PROGRAM FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 TOTAL OF TOTAL Public Safety 1,571,436 270,864 1,000,000 4,735,900 5,494,208 13,072,408 3.7% Public Works 22,749,818 31,015,139 41,503,256 23,679,566 16,898,436 135,846,215 38.5% Culture & Recreation 3,802,314 3,483,894 1,187,010 1,561,177 2,102,277 12,136,672 3.4% Community & Econ. Devl. 5,724,364 3,633,758 1,473,687 1,471,606 531,500 12,834,915 3.6% General Government 2,453,704 3,385,236 4,090,247 797,644 497,200 11,224,031 3.2% Business Type 44,332,102 36,895,031 37,917,690 29,379,104 19,202,394 167,726,321 47.5% TOTAL 80,633,738 78,683,922 87,171,890 61,624,997 44,726,015 352,840,562 100% The State Mandated Budget Program Areas and the City Departments/Activities that fall under each of these areas are as follows: Public Safety—Police, Emergency Communication Center, Fire, Disaster Services, Health Services:Animal Control, Public Works: Flood Control, Housing: Code Inspection and Construction Services Public Works—Airport, Public Works, Engineering Health and Social Services—Human Rights, Health Services, Purchase of Services Culture and Recreation—Parks, Civic Center, Conference Center, Ice Center, Recreation,AmeriCorps, Multicultural Family Center, Library,Arts and Cultural Affairs Community and Economic Development-Economic Development, Housing and Community Development, Planning Services, Purchase of Services General Government—Engineering: Facilities Management: City Hall/Annex Maintenance/Grand River Center Maintenance, City Council, City Manager, Communications, Human Resources, Sustainability, City Clerk, Finance, Media Services, City Attorney, Information Technology Business Type—Water,Water Resource& Recovery Center, Parking,Transit, Public Works: Landfill, Refuse, Salt Operations, Engineering: Sewer, Stormwater -xxxvii - Page 1487 of 2358 Attachment 3 FISCAL YEAR 2027 -2031 CIP BUDGET HIGHLIGHTS BY CITY COUNCIL GOALS & PRIORITIES CITY COUNCIL POLICY AGENDA The City Council Policy Agenda includes items that require major policy direction decision and/or funding. It includes the City Council's Top and High Priorities. Goal Project Description Departments CIP Page -------------------------------------- ---------------------------------------------- --------------------------------------------------------- --------------------- ------------- � � �Updates to restore six fire stations to preventative � � � ;Healthy& Safe Community ;Fire Department Building Maintenance ;maintenance-level condition ;Fire ;3 ; �--------------------------------------�----------------------------------------------r---------------------------------------------------------�---------------------*-------------� �Healthy& Safe Community �Outdoor Warning Siren Repair/Replace �Upgrades to 17-unit outdoor warning siren system �Fire �5 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------� � � �Implements fire station location plan for improved � � � ;Healthy& Safe Community ;Fire Station Expansion/Relocation ;emergency response ;Fire ;6 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------i � �Fire Engine and Ambulance �Scheduled replacements for reliable emergency � �8,9,11,13, � ;Healthy & Safe Community ;Replacements ;response fleet ;Fire ;14,15 ; �--------------------------------------t----------------------------------------------+---------------------------------------------------------r---------------------+-------------� � � �Modernizing communication equipment for first � � � ;Healthy& Safe Community ;Portable Radio Replacements ;responders ;Fire/Police/Airport ;12 ; �--------------------------------------�----------------------------------------------}---------------------------------------------------------�---------------------+-------------� ; ;Enterprise Asset Management System ; ; ;62, 210, ; �Financially Responsible, High- �(Water, Sanitary, Stormwater, Roadways, �Citywide CMMS for asset optimization and service � �234, 292, � ;Performance City ;Fiber) ;delivery ;Multiple Depts. ;332 ; r--------------------------------------�----------------------------------------------*---------------------------------------------------------r---------------------*-------------� ;Financially Responsible, High- ; ;Investments in technology to reduce water loss ; ; ; ;Performance City ;Leak Detection Equipment and Survey ;and improve efficiency ;Water ;72, 73 ; �--------------------------------------�----------------------------------------------}---------------------------------------------------------�---------------------+-------------� ;Financially Responsible, High- ; ;Regular replacement of network infrastructure for ; ; ; �Performance City �Network Switch Replacement �cybersecurity �IT Dept. �365, 371 � �--------------------------------------�----------------------------------------------L---------------------------------------------------------�---------------------L-------------� ; ;8th Street 20"Transmission Water Main ;Infrastructure expansion to support economic ; ; ; �Robust Local Economy �Connection �development �Water �48 � �--------------------------------------F----------------------------------------------}---------------------------------------------------------�---------------------+------------� � � �Enhancing water supply reliability for economic � � � ;Robust Local Economy ;Central Avenue Booster Station ;growth ;Water ;50 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------i � � �Partnership with GDDC for workforce retention, � � � ;Robust Local Economy ;Workforce Development ;recruitment, creation ;Economic Develop;343 ; r--------------------------------------r----------------------------------------------*---------------------------------------------------------r---------------------*-------------� ;Robust Local Economy ;Downtown Storefront Activation Program ;Financial assistance to activate vacant storefronts ;Economic Develop;341 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------i � �Low/Mod Income Area Park � � � � ;Livable Neighborhoods & Housing;Improvements ;Upgrades to parks in low/moderate income areas ;Parks ;19 ; �--------------------------------------�----------------------------------------------r---------------------------------------------------------�---------------------*-------------� � � �Loans for maintenance and rehabilitation of owner-� � � ;Livable Neighborhoods & Housing;Homeowner Rehabilitation Program ;occupied homes ;Housing ;351 ; �--------------------------------------�----------------------------------------------�---------------------------------------------------------�---------------------*-------------� ;Livable Neighborhoods & Housing;Assistance for Homeownership ;Programs to support affordable homeownership ;Housing ;349 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------i � �Healthy Homes Production Grant& Lead � � � � ;Livable Neighborhoods & Housing;and Healthy Homes Grant ;Addressing housing-related health hazards ;Housing ;354, 356 ; �--------------------------------------t----------------------------------------------+---------------------------------------------------------r---------------------+-------------� � � �Water treatment investments for safe drinking � � � ;Sustainable Environment ;Source Water PFAS Reduction Projects ;water ; '86, 87 ; --------------------------------------------------------�Water--------------�- �--------------------------------------�----------------------------------------------�- ----- ------------� -xxxviii - Page 1488 of 2358 Goal Project Description Departments CIP Page -------------------------------------- ---------------------------------------------- --------------------------------------------------------- --------------------- ------------- � � �Solar arrays on city facilities to reduce energy �City Manager's � � ;Sustainable Environment ;Municipal Solar Projects (MFC & Library) ;costs and emissions ;Office ;361, 363 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------� � �Bee Branch Gate & Pump Replacement � �Engineering/ � � ;Sustainable Environment__________FProject______________________________________FMajor stormwater infrastructure to mitigate flooding FStormwater ; ; �---------------------------- --------«220---------� ;Sustainable Environment ;Landfill Waste Minimization Grant Project;Grants for waste reduction, recycling, composting ;Public Works ;183 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------i � � �Multimodal corridor improvements, rail crossing � � � ;Connected Community ;14th Street Overpass (B2E2 Project) ;elimination ;Engineering/Street ;265 ; r--------------------------------------�----------------------------------------------*---------------------------------------------------------r---------------------*-------------� � �East-West Corridor Capacity �Upgrades to University Avenue and related � � � ;Connected Community ;Improvements ;corridors ;Engineering/Street ;270 ; 4��4��4��4��i��1 ; ; ;EV charging infrastructure at key downtown ; ; ; �Connected Community ____________�Public Electric Vehicle Chargers__________ilocations______________________________________________ �Engineering/Traffici300_ � L"_"""""""""""' """"I ; ; ;Technology for improved parking management and ;Transportation ; ; �Connected Community �Smart Parking System �wayfinding �Services �345 � �--------------------------------------F----------------------------------------------}---------------------------------------------------------�---------------------+------------� ;Diverse Arts, Culture, Parks, � �Upgrades to arena, theater, lobby for cultural/ � � � ;Recreation ;Five Flags Building Improvements ;recreational use ;Civic Center ;29 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------i �Diverse Arts, Culture, Parks, �Chaplain Schmitt Island Environmental �Restoration of natural areas as part of � � � ;Recreation ;Restoration ;development plan ;Parks ;20 ; r--------------------------------------r----------------------------------------------*---------------------------------------------------------r---------------------*-------------� �Diverse Arts, Culture, Parks, ;Eagle Point Park Master Plan & ;Comprehensive planning and upgrades for � � � ;Recreation ;Improvements ;signature park ;Parks ;23 ; �--------------------------------------F----------------------------------------------F---------------------------------------------------------F---------------------�-------------� ;Diverse Arts, Culture, Parks, ; ;Planning for expanded indoor recreation and ; ; ; �Recreation �Community Center Master Plan �programming �Parks �34 � L______________________________________L______________________________________________L_________________________________________________________L_____________________L_____________1 ; ; ;Law Enforcement Center upgrades for operational ; ; ; �Policy Agenda Top Priority �DLEC Upgrades and Maintenance �readiness �Police �1 � L______________________________________L______________________________________________L_________________________________________________________L_____________________1____________J ; ;Old Mill Road Lift Station & Force Main ; ;Engineering/ ;235, 237, ; ;Policy Agenda Top Priority ;(Phases 1-4) ;Major sanitary sewer investments ;Sanitary Sewer ;239, 241 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------� � �Bee Branch Gate & Pump Replacement � �Engineering/ � � ;Policy Agenda Top Priority ;Project ;Stormwater management investments ;Stormwater ;220 ; r--------------------------------------r----------------------------------------------r---------------------------------------------------------r---------------------r-------------� � �Pavement Rehabilitation,ADA Curb � � � � ;Policy Agenda Top Priority ;Ramp Program, etc. ;Street maintenance/rehabilitation program ;Engineering/Street ;275, 136 ; �--------------------------------------f----------------------------------------------F---------------------------------------------------------�---------------------«-------------� ; ;Central Avenue White Street Corridor ; ; ; ; �Policy Agenda High Priority �Master Plan �Central Avenue revitalization �Engineering/Street �267 � �--------------------------------------�----------------------------------------------L---------------------------------------------------------�---------------------L-------------� ;Policy Agenda High Priority ;Downtown Master Plan Update ;Comprehensive downtown planning ;Planning Services ;358 ; r--------------------------------------�----------------------------------------------*---------------------------------------------------------r---------------------*-------------� � � �Environmental, water, sanitary, and stormwater � �20, 49, � ;Policy Agenda High Priority ;Chaplain Schmitt Island Development ;improvements ;Multiple Depts. ;222, 243 ; 4��4��4��4��i��1 ; ;Parks and Recreation Master Plan ;Community Center, Eagle Point Park, and other ; ; ; �Policy Agenda High Priority________�Adoption �park improvements �Parks �23, 34 � L"_"_"_"_"_"_"_"_"_"_ """'_"_""""_"_"_"""""L_"_"_"_"_"_"_"_"_"_"_"_"_""'_"_"_"_""'L"_"_"_""""""L""""""'I ; ;WRRC Plant Nutrient Reduction ; ;Water& Resource ; ; �Policy Agenda High Priority �Improvements �Water Resource and Recovery Center upgrades �Recovery Center �109 � L--------------------------------------�----------------------------------------------L---------------------------------------------------------L---------------------1------------� -XXXIX- Page 1489 of 2358 MANAGEMENT IN PROGRESS AND MAJOR PROJECTS: The following are projects that were identified as the 2025 - 2027 Management in Progress and Major Projects by the City Council and are included in the 2027 CIP budget according to one of the Council's goals. 2025 -2027 Management in Progress Management in Progress are items that were previously a City Council Goal and are now in the implementation phase. These items are included in the existing FY 2026 and proposed FY 2027 Operating budgets unless noted for additional funding. The items are identified under their corresponding City Council Goal: Healthy & Safe Community • Access, Belonging and Community Action Plans • Community Risk Reduction Program Implementation • Fire Explorer Program Development • License Plate Reader Camera Deployments • New Emergency Responder Computer-Aided Dispatch (CAD) System • Police Radios Upgrade Implementation • Public Health Preparedness Emergency Response Plan Update • Traffic and Security Camera Deployments and Upgrades Financially Responsible, High Performance City Organization: Sustainable and Effective Service Delivery • Adopt-A-Spot/Volunteer Management Hub Site GIS Application • City Bond Rating: Updated Credit Rating and Bond Sale • City Departments Safety Program: Funding for OSHA Compliance • City Facilities Integrated Access Control Project • City Hall and City Hall Annex Renovations • City Website ADA Compliance • Enterprise Asset Management System and Work Order System Funding and Implementation • Enterprise Resource Planning (ERP) Software Implementation • Federal Legislative Advocacy Agenda and Action Plan • Historic Federal Building Upgrades • Human Resources Information System (HRIS) Implementation • Multicultural Family Center Management and Staffing Review • Organizational Culture Continuous Improvement: Exit Interviews • State Legislative Advocacy Agenda and Action Plan 2026 • Succession Plan for Intergovernmental Relations Position Robust Local Economy: Diverse Business &Jobs with Economic Prosperity • Business Incentives Policy/Processes Review • Chaplain Schmitt Island Development: Hotel Project -xl - Page 1490 of 2358 • Comprehensive Hotel Attraction/Incentive Policy • Electronic Bidding Software Implementation • Field of Dreams: Next Steps for City Support • Minority and/or Women-owned Business Enterprise (MWBE) Procurement Policy • Port of Dubuque New Hotel Development: City Actions • Poverty Prevention and Reduction Plan Update • River Cruise Ship Docking Project Livable Neighborhoods and Housing: Great Place to Live • Unified Development Code Update and Adoption • Historic Millwork District Development Update • Neighborhood Associations Development:Activation/Expansion • Terminus Software Implementation for City Permits • Permitting and Inspection Software Implementation • New Housing Development Status Updates Sustainable Environment: Preserving & Enhancing Natural Resources • Electric Bus Acquisition and Charging Station • Emerald Ash Borer Recovery: Funding for Stump Removal, Planting, and Related Sidewalk Replacement • Green Alley Maintenance and Performance Evaluation • Sewer System Infrastructure Asset Master Plan Development and Adoption • Branching Out Dubuque Tree Planting Program • Water Department 2025 Consumer Confidence Report • Water and Resource Recovery Center (WRRC) 2025 Explosion Recovery Completion • WRRC Fats, Oils, and Greases (FOG) Program Review • WRRC High-Strength Waste Receiving and Storage Project • WRRC HVAC Mini-Split System Installation • WRRC State-Certified Lab Expansion Connected Community: Equitable Transportation, Technology, Infrastructure, & Mobility • Jule Federal Transportation Administration Areas of Persistent Poverty Planning Grant • Parking System Technology Upgrade and Installation • Smart Parking and Mobility Study Implementation • STREETS (Smart Traffic Routing with Efficient and Effective Traffic System) Program Funding and Implementation Diverse Arts, Culture, Parks, and Recreation Experiences and Activities • Comiskey Park Phase 2 Upgrades: Parking and Amenities • Community Cultural Experiences and Programming -xli - Page 1491 of 2358 • Historic Millwork District Green Space Plan • Eagle Point Park Historic Structures Assessment and Report • Friends of Eagle Point Park Organization Development • Eagle Point Park Fall 2025 Clean-Up Major Projects Major Projects are projects that are underway and budgeted. Staff is implementing and providing updates to City Council. These items are included in the existing FY 2026 and proposed FY 2027 Operating budgets unless noted for additional funding. The items are identified under their corresponding City Council Goal: Healthy & Safe Community • Fire Stations Improvement Projects • Crescent Community Health Center Facilities and Services Expansion Financially Responsible, High Performance City Organization: Sustainable and Effective Service Delivery • Multicultural Family Center Elevator • City Data Center Phase 2 Robust Local Economy: Diverse Business &Jobs with Economic Prosperity • (none) Livable Neighborhoods and Housing: Great Place to Live • (none) Sustainable Environment: Preserving & Enhancing Natural Resources • Auburn St and Custer St Water Main, Sanitary Sewer, and Street Reconstruction • City-Wide Fiber Project: Water Department Pump, Stations, Tanks, and Towers • Green Alley Project: 15th St. to 17th St. between lowa St and Central Ave • Lead Water Service Lines Replacement Phase 1 • N. Cascade Rd./Southwest Arterial Water and Sewer Main Extensions from Edval Ln. to N. English Mill Rd. • Rockdale Rd. Stormwater Project • Water Department Deep Well No.7 Rehabilitation • Water Department New Deep Well No. 7 Rehabilitation (part of PFAS Remediation Plan) • Water Department SCADA(Supervisory Control and Data Acquisition) Overhaul • Water Main Creek Crossing Restoration Project Connected Community: Equitable Transportation, Technology, Infrastructure, & Mobility • 14th St Railroad Overpass and 16th St Corridor Complete Streets Improvements -xlii - Page 1492 of 2358 • Airport General Aviation Apron Reconstruction • Airport Taxiway Alpha Construction • Chaplain Schmitt Island Trail Project (Federal Community Project Grant) • Fiber Optic Connections to Data Center • Relocation of Fiber Optics on Julien Dubuque Bridge • SouthwestArterial IntelligentTransportation System (ITS) Project • US 20/Northwest Arterial Intersection lowa DOT Project • Wildwood Dr. Bridge Replacement Diverse Arts, Culture, Parks and Recreation Experiences and Activities • Jackson Park Restrooms • ImOn Ice Arena Dehumidification System • Rustic Point Park Completion • South Pointe Park Completion • Eagle Point Park Water Tower Destruction • Chaplain Schmitt Island Amphitheater -xliii - Page 1493 of 2358 Attachment 4 Source of Funds and Important Details The Fiscal Year 2027-2031 CIP presents a financial plan that reflects a $287,495 general fund property tax levy supported annual debt service for the purchase of a replacement pumper truck ($1,035,000) and the franchise fee litigation settlementjudgment bond ($2,800,000). The Fire Station Expansion/Relocation project included in the Fiscal Year 2027-2031 CIP will be funded through the issuance of General Obligation (G.O.) bonds. The debt will be repaid through the City's debt service property tax levy.As a result, this project will increase property taxes to support the repayment of bonds over time. It is anticipated that other borrowing from non-utility funds can and will be minimized by using other sources of funds such as sales tax revenue. The following important details are about the source of funds: UTILITIES Stormwater The Stormwater Utility was formed on July 1, 2003, to update and expand the City's aging infrastructure, comply with the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit, and implement the various elements of the 2001 Drainage Basin Master Plan (amended in 2013), which outlined improvements in both the Catfish Creek and Bee Branch watersheds. The City has been able to garner support from local, state, and federal partners with over$163 million in outside funding to help offset the cost of the overall $254 million project. Since 2001, the City has made steady progress on the various phases of the project. When the City Council adopted Ordinance 21-12 (passed and approved on March 7, 2012), they established that the stormwater utility fee would increase to $9.00 per month on July 1, 2016 in order to fund the operational and capital costs of the public stormwater management system, including improvements such as the Bee Branch Creek Restoration Project. But later in 2012, the lowa General Assembly created the Flood Mitigation Program which provides funding for flood mitigation projects undertaken by local governments such as the City of Dubuque. Managed by the lowa Flood Mitigation Board, the funding source established involves taking a portion of the incremental growth of State sales tax revenue collected within a city and diverting from the State General Fund to cities approved for the funding. Having updated the Drainage Basin Master Plan in the fall of 2013, which outlined the improvements associated with the 12-phase Bee Branch Watershed Flood Mitigation Project, the City was successful in securing $98.5 million in State sales tax increment funding. With the infusion of funding, the City Council adopted Ordinance 16-14 (passed and approved on March 5, 2014) establishing that the stormwater utility fee did not reach $9.00 per month until July 1, 2021, five years later than later than previously scheduled. The City has been able to provide stormwater management services within the rate structure established by Ordinance 16-14. Due to the uncertain economic impacts of the COVID-19 pandemic, there was no increase in FY2021 as part of the City's Coronavirus relief response. With some minor adjustments to planned Capital Improvement Program projects, reducing some budgets and delaying a few others, the City was able to delay the planned increases for a year such that the rate did not reach $9.00 per month until FY 2023, six years later than previously scheduled. -xliv- Page 1494 of 2358 The recommended Fiscal Year 2027-2031 Capital Improvement Program Budget includes includes an additional $5,121,112 for the Flood Mitigation Gate and Pump Replacement, a key component of the Bee Branch Creek Restoration Project (Phase 5 of the Bee Branch Watershed Flood Mitigation Project). Combined with funding allocated in prior fiscal years (FY24-FY26), the total project investment is $28,456,106. The recommended Fiscal Year 2027-2031 Capital Improvement Program Budget includes $12,275,000 shared across four funding sources to complete final design work in Fiscal Year 2027 and begin construction in Fiscal Year 2028 for the 17th/W. Locust Street Reconstruction Project, part of the Bee Branch Creek Restoration Project (Phase 12B of the Bee Branch Watershed Flood Mitigation Project). Design for this project was largely completed in the late 2010s and early 2020s, but progress was paused due to funding challenges during the COVID-19 pandemic. Fiscal Year 2027 will be the nineteenth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low-to-moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2027 Stormwater User Fee is proposed to increase from $11.03 per SFU to $12.02 per SFU, a 9.00% increase. Rate Per Single Family Unit (SFU) Fiscal Year 2021 -Adopted Per Ordinance 21-20 $ 8.29 Fiscal Year 2022 -Adopted Per Ordinance 10-21 $ 8.85 Fiscal Year 2023 -Adopted Per Ordinance 13-22 $ 9.00 Fiscal Year 2024 -Adopted Per Ordinance 14-23 $ 10.00 Fiscal Year 2025 -Adopted Per Ordinance 14-24 $ 10.50 Fiscal Year 2026 -Adopted Per Ordinance 14-25 $ 11.03 Fiscal Year 2027 - Recommended $ 12.02 -xlv- Page 1495 of 2358 Water Water revenue represents a portion of the monthly water bill that goes for maintenance, repair, replacement and improvement of the Eagle Point Water Plant and water distribution system on a pay-as-you-go basis for all projects except the major extensions. The Fiscal Year 2027-2031 CIP anticipates $4,174,231 in Fiscal Year 2027, $3,623,407 in Fiscal Year 2028, $1,793,632 in Fiscal Year 2029, $2,312,622 in Fiscal Year 2030, and $1,676,919 in Fiscal Year 2031. Water State Revolving Fund Loans will be used to finance water projects in FY 2027-2031 as follows: $0 FY 2027; $7,302,707 FY 2028; $11,563,870 FY 2029; $6,806,000 FY 2030; and $2,055,000 FY 2031. The debt service related to the total $27,727,577 State Revolving Fund Loans over the 5-years will be paid from water fees and offset by reduced payments to Depreciation (Construction Fund). The State Revolving Fund Loans support Source Water PFAS Reduction Project Deep Well, Source Water PFAS Reduction Project Granular Filter, West End Annexation Phase II, 17th/Locust St Reconstruction Phase 4 (Heeb to Kirkwood), Private Lead Service Line Replacement Program (City-Wide), Central Ave Booster Station, Central Ave Water Main Extension, South Algona 12" Water Main Replacement, Water Main Replacement W 8th St (Bluff to Hill), Water Storage Rehabilitation Program, HWY 20/Dodge St Water Main Relocation - Devon Drive to Concord Street, Water Main Extension Olympic Heights Road, and Southwest Arterial (Key West Drive to Silverwood Drive) 16" Water Main Installation. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Water Fund's share of the City's administrative overhead is 18.75%. In FY 2027, the Water Fund will support 18.01% of administrative overhead. The water fees in FY 2027 are recommended to increase 3.0%. -xlvi - Page 1496 of 2358 Sewer Sewer revenue represents a portion of the monthly sewer bill that goes for the maintenance, repair, replacement and improvement of the Water& Resource Recovery Center Plant; lift stations, and sewer lines. The Fiscal Year 2027-2031 CIP anticipates $26,300,608 in Fiscal Year 2027, $19,579,781 in Fiscal Year 2028, $19,532,176 in Fiscal Year 2029, $15,269,824 in Fiscal Year 2030 and $11,750,197 in Fiscal Year 2031. Sanitary Sewer State Revolving Fund Loans will be used to finance sewer projects in FY 2027-2031 as follows: $12,232,834 FY 2027; $17,579,781 FY 2028; $17,132,176 FY 2029; $12,669,824 FY 2030; and $8,500,197 FY 2031. The debt service related to the total $68,114,812 State Revolving Fund Loans over the 5-years will be paid from sewer fees and offset by reduced payments to Depreciation (Construction Fund). The State Revolving Fund Loans support such projects as Catfish Creek Sewer shed Interceptor Improvements (South Fork and Middle Fork), South West Arterial Middle Interchange Sewer Extension, Old Mill Road Lift Station & Force Main Phases (1 and 2), Track Line Sewer Reconstruction, Schmitt Island Sanitary Improvements, Grove Terrace Sanitary Sewer Reconstruction, Cooper PI & Maiden Ln Sanitary Sewer Reconstruction, Harvard Sanitary Sewer, Hempstead Reconstruction, Knob Hill-Duggan Drive Sanitary Sewer Reconstruction, JFK Yiannias PI Sanitary Sewer Relocation, Key West Sanitary Lift Station Replacement, Sanitary Basin Analysis - Steger Heights, Quigley's Sub and South Port/Terminal St, 17th/Locust St Reconstruction Phase 4, W&RRC Plant Nutrient Reduction Improvements, W&RRC Industrial Control Upgrade, W&RRC Headworks Bar Screen Replacement, and W&RRC Treatment System Infrastructure Restoration and Reliability Improvements. The sewer fees in FY 2027 are recommended to increase 9.0%. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. -xlvii - Page 1497 of 2358 The Sanitary Sewer Fund's share of the City's administrative overhead is 18.75%. In FY 2027, the Sanitary Sewer Fund will support 18.01% of the administrative overhead. Parking Parking revenue represents three primary sources: (a) the balance of prior year depreciation funds set aside for the maintenance and repair of parking ramps; (b) future payments to the depreciation fund for repair and maintenance of the parking system (there are no budgeted payments to the depreciation fund in future years due to using existing cash balance); and (c) interest income. A$4.15 million Greater powntown TIF borrowing is anticipated in FY 2027-2031 for parking ramp major maintenance. New debt service will be paid from the Greater powntown TIF fund. The Greater powntown TIF will support parking related debt in the downtown as follows: $2,014,000 in FY 2027; $2,010,750 in FY 2028; $2,012,625 in FY 2029; $2,013,875 in FY 2030; and $2,014,125 in FY 2031. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Parking Fund's share of the City's administrative overhead is 6.93%. In FY 2027, the Parking Fund will support 2.86% of the administrative overhead. -xlviii - Page 1498 of 2358 Solid Waste Collection Activities Solid waste collection activities revenue represents a portion of the monthly refuse bill that goes for the purchase of solid waste collection vehicles. The Fiscal Year 2027-2031 CIP anticipates $460,000 in FY 2027, $469,250 in FY 2028; $423,679 in FY 2029; $646,544 in FY 2030; and $772,500 in FY 2031. The Solid Waste Collection Fund is anticipated to have a deficit balance of$587,638 at the close of FY 2027, which will be offset by an internal loan from a portion of the $5.3 million loan repayment from the Greater powntown TIF fund to the General Fund. The Solid Waste Collection Fund will begin repaying the General Fund in the Fiscal Year that there is no longer a deficit balance, which is estimated to be FY 2031. The Solid Waste Collection will support solid waste related debt for solid waste collection vehicles as follows: $460,000 in FY 2027; $463,250 in FY 2028; $408,879 in FY 2029; $640,544 in FY 2030 ; $766,500 in FY 2031. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Solid Waste Fund's share of the City's administrative overhead is 18.75%. In FY 2027, the Solid Waste Fund will support 18.75% of the administrative overhead. The solid waste collection fees in FY 2027 are recommended to increase 9%. -xlix- Page 1499 of 2358 GENERALFUND The current revenue amount of$352,000 (0.10% of CIP Total) during the five-year period represents $50,000 in golf funds for improvements to the Bunker Hill Golf Course, $22,000 in Historic Preservation Loan repayments, $60,000 in Rental Dwelling Rehab Repayments, $150,000 in Washington Neighborhood Loan Repayments, $50,000 in insurance and other reimbursements, and $20,000 in repayments to the Homeownership Loan Program. LOCAL OPTION SALES TAX (LOST� The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 20 percent of the proceeds would be used for: (a) the upkeep of City-owned property such as sidewalks, steps, storm sewers, walks, curbs, traffic signals and signs, bridges, and buildings and facilities; (b) transit equipment such as buses; (c) riverfront and wetland developments; and (d) economic development projects. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as "Sales Tax (20%)" totals$844,281 and represents 0.24% of the total CIP. The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 30 percent of the proceeds would be used to: (a) reduce street special assessments by at least 75 percent; and (b) maintain and repair streets. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as "Sales Tax/Street Projects (30 percent)" and totals $16,417,822, or 4.65% of the total CIP. GAMING DRA payments represent 0% in FY 2027 of the projected gaming taxes, rent, and admissions from the race track, slots and riverboat operations ($0 or 0.00% of the total CIP) over the five-year period. When practical in future years, additional revenues will be moved to capital from operating. To the extent that there is any revenue shortfall in future years, capital projects will be eliminated or deferred. DRA distribution revenue projections ($0 or 0.00% of the total CIP) are discounted consistent with the adopted budget guidelines by 5% in FY 2029, 10% in FY 2030 and 15% in FY 2031. In Fiscal Year 2027, all DRA Distribution is diverted to the operating budget instead of being used in the capital budget. This was also done in Fiscal Years 2024-2026 which is a change from past practice. On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1% of coin-in to 1.5°/o of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, the distribution of net profit is now split three ways between the City, charities, and the Schmitt Island Master Plan Implementation from a two-way split between the City and charities. The amended lease has an expiration date of December 31, 2055. In calendar year 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. - I - Page 1500 of 2358 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. FEDERAL FUNDING Community Development Block Grant (CDBG) The Fiscal year 2027-2031 CIP anticipates that Community Development Block Grant (CDBG) funds will be $650,000 in FY 2027; $650,000 in 2028; $450,000 in FY 2029; $450,000 in FY 2030; and $200,000 in FY 2031 (0.68% of the total CIP). Federal Aviation Administration (FAA) The FAAfunding of$18,140,035 (5.14% of the total CIP) provides 90 percent match on most airfield related improvements. The Fiscal Year 2027-2031 budget includes Reconstruct Taxiway A, Taxiway J Improvements, Taxiway D Extension, and Update Airport Pavement Management System. Federal Lead Paint/Healthy Homes Grant (0.83% of Total CIP) The Fiscal year 2027-2031 CIP anticipates that Lead Paint/Healthy Homes Grant funds will be $1,900,000 in FY 2027; $1,036,600 in 2028; $— in FY 2029; in FY 2030; and in FY 2031 (0.83% of the total CIP). Healthy Homes Production Grant (0.32% of Total CIP) The Fiscal year 2027-2031 CIP anticipates that Healthy Homes Production Grant funds will be $2,995,200 in FY 2027; $1,658,050 in 2028; $— in FY 2029; in FY 2030; and in FY 2031 (0.32% of the total CIP). Federal Assistance Federal Assistance funding of$45,351,606 (12.85% of the total CIP) includes EDA, EPA, Infrastructure grants, and other federal grants. The Fiscal Year 2027-2031 budget includes Bee Branch Creek Gate and Pump Replacement, Public Electric Vehicle Chargers, Electric Buses, 14th Street Overpass, and East-West Corridor Capacity Improvements. - li - Page 1501 of 2358 Federal STP Funds Federal STP Funds funding of$14,845,453 (4.21% of the total CIP) includes DMATS funds for 14th Street Overpass, STREETS Phase 2, and US Highway 20 - Northwest Arterial Intersection Operational and Capacity Improvements. STATE FUNDING Road Use Tax Road Use Tax Funds (RUTF) of$3,174,227 (0.90% of the total CIP) over five years represents the balance of annual payments not required for support of the operating budget and funds that had been reserved to finance high priority transportation projects. The lowa Department of Transportation (IDOT) provides annual projections on the amount of RUTF the City of Dubuque will receive over the next five years based on a per capita amount. The State Road Use Tax Fund consist of revenues from fuel tax, vehicle registration fees, use tax, driver's license fees and other miscellaneous sources and is distributed to cities on a per capita basis. It should be noted that in FY 2010, the lowa Department of Revenue increased Road Use Tax Funds (RUT) as a result of higher vehicle registration fees passed into law in 2008. The gas tax was increased ten cents beginning in February 2015. The city is estimated to receive $44,944,898 for FY 2027-2031, all used for operations. Sales Tax Increment Revenue The City secured a $98.5 million grant through the State of lowa Flood Mitigation program funded by 70% of the sales tax increment revenue received from the State of lowa's 5% portion of sales tax received from sales in the City of Dubuque. This revenue will fund the debt service payable on Sales Tax increment Revenue bonds and lowa Finance Authority State Revolving Fund Loans issued for the Flood Mitigation project known as the Bee Branch Watershed Project. In the five year capital program, $50,000 of sales tax increment revenue will fund pay-as-you-go projects related to the Bee Branch Watershed project. Other State Grants (0.69% of Total CIP) State funding includes lowa Department of Transportation Funding for street projects and trails and Historic Preservation Surveys and Regulations of$2,445,000 are anticipated over the five-year program. lowa Finance Authority funding of$1,013,268 is anticipated over the five-year program for the Housing Department's Housing Trust Fund to provide permanently affordable housing or assistance to nonprofit organizations providing the same. TAX INCREMENT FINANCING (TIF� Dubuque Industrial Center West TIF District In FY 2006 and 2007, Tax Increment Financing (TIF) funds were committed towards abatement of the 20 year G.O. Bond issue for a Dubuque Industrial Center West (DICW) expansion and Chavenelle Road extension project, thereby delaying payback to the general fund for prior year development costs. In FY 2007, the TIF assessed values increased, allowing for additional increment for projects and cost recovery to continue. In FY 2017, the TIF assessed values increased again from a commercial 12% state equalization order. - lii - Page 1502 of 2358 The FY 2027-2031 CIP includes $1,857,500 in land sale proceeds to provide funding for the new campaign by the Greater Dubuque Development Corporation to improve the economy in Dubuque, $182,850 for the Chavenelle Street Light Replacement Project. Annexation Initiatives As annexation and development continues, the City has taken the following initiatives to provide services to annexed areas: Additional Police Officers (Operating Budget) With the Police Department's crime strategy, Territory Accountability Design, in full implementation, the department projected the need to increase Dubuque's current six patrol territories to seven as new areas of the city are developed. To add a seventh territory, five additional police officers were needed. Partly in response to this need, the Police Department developed a Sworn Officer Plan which proposed the addition of 15 sworn police officers over a five-year period, with the first five (four Police Officers and one Police Corporal acting as a Section 8 Investigator) approved in December 2007, four more were approved in FY 2009, three more were approved in FY 2010, two more were approved in FY 2011 and one more was approved in FY 2012. The plan's staff increases created sufficient staffing to establish an additional patrol territory. In FY 2019, an additional sworn police officer was added, an existing position was promoted to Captain and one Corporal position was eliminated in order to create a Specialty Unit Commander. The Fiscal Year 2020 budget approved the expansion of the Dubuque Police Department School Resource Officer (SRO) Program. To spread the expenses over time, three SRO's were to have been added over three consecutive years: Fiscal Year 2020, Fiscal Year 2021, and Fiscal Year 2022 budget. However, the expansion was frozen in FY21 due to the pandemic pausing the final position and was added in FY23 instead of FY22 as originally planned. The Dubuque Community School District (DCSD) will still gradually pay 50% of the salary of the existing SRO Lieutenant, and the DARE Officer. This DCSD payment will be implemented in increments of 45% of 50% reimbursement in year 1, or Fiscal Year 20, 75% of 50% reimbursement in year 2, or Fiscal Year 21, and 100% of 50% reimbursement in year 3, or Fiscal Year 22. In Fiscal Year 2024, two Crisis Intervention Team Officers were approved. In late 2024, the Precision Policing Center (PPC) was established. It is expected to serve as a critical "force multiplier" for the department, supporting rapid police response, informed decision-making, and proactive crime prevention. This is also supporting officer safety. The PPC is staffed by five non-sworn (civilian) employees in three roles: three Precision Policing Center Technicians, one Crime Analyst, and one Criminal Computer Forensics. Fire Station and Additional Firefighters/Paramedics An additional west end fire station is currently projected to be designed in FY 2030 and built in FY 2031.In April 2026, the City began a study of all stations and future needs. The City of Dubuque currently has an annexation study and not an annexation plan. However, addition of this fire station and associated ambulance and firefighting response capability and capacity positions the City well to develop an annexation plan and begin the process of annexation in the future. The City Development Board, that approves annexation expects services to be provided within 3 years of annexation. For a new station, operating costs include insurance, utilities, equipment, maintenance, and furniture. In FY2020, one (1) new employee was added, one (1) additional new employee was added in FY 2021 as well. The position that was to be added in FY2022 was delayed. In FY2023, 4 new employees were added. In FY2024, one new firefighter was added. In FY 2025 an additional EMS Captain and an additional EMS Bureau Chief were approved. In FY 2026, 5 firefighter/paramedic positions were added and additional employees may be added in future years. In addition, 3 firefighter/paramedic positions were added in FY2023 to provide one additional staff member on each of the three duty shifts. The additional ambulance for the additional fire station was purchased in FY2023. The current minimum staffing per shift is 22, with 28 personnel assigned to cover leave. The additional personnel will reduce the need for overtime as each shift will have more positions available to cover vacations and other leave. - liii - Page 1503 of 2358 Water and Sanitary Sewer Service The City is in the process of extending sanitary sewers and water service into new development areas or recently annexed areas as part of pre- annexation agreements and replacing undersized sanitary sewers along with new lift stations. Requests have been received for sanitary sewer and water service on North Cascade Road near Highway 20 and for water service further North on John F. Kennedy Road. In 2003, a new water main was activated from Highway 20 north on the east side of the Northwest Arterial to John F. Kennedy Road then west to a new 1.25 million gallon water tower located at the Dubuque Soccer Complex. By constructing this tower and with this water main extension in the fourth pressure zone of the City's water distribution system, it allowed growth to take place for residential, commercial and industry to the west of the community. To date, both sanitary sewer and water service have been extended through the Dubuque Industrial Center West, along Seippel Road to the north edge of the Callahan subdivision. Additional funds are available to extend water and sewer service to the 643 acres annexed and to other areas under consideration for annexation. The City has spent in excess of$2 million to replace much of the North Fork Catfish Creek Sanitary Sewer Line. The City extended the Granger Creek Interceptor sewer and the public water main from the Technology Park South along highway 151/61 to the north side of the Dubuque Regional Airport. The Granger Creek sanitary sewer and water main extension provided immediate sanitary sewer and water services to the Dubuque Regional Airport and portions of the annexation areas that are adjacent to the highway 151/61 corridor. Greater powntown TIF District This district was formally the Downtown and Ice Harbor TIF districts but now have been combined to the Greater powntown TIF district. Now that the City will only be claiming 75% of Greater powntown TIF revenue beginning in FY 2028, resources for these capital projects are significantly reduced. Many projects, which are City Council priorities, are able to move forward due to the availability of Greater powntown TIF revenue due to continued growth to further sustain a rejuvenated downtown and port of Dubuque. The following charts shows the amount of TIF revenue reduction in GDTIF due to claiming 25% less in TIF revenue: � � -• . - • ' . •- 2027 $ 13,524,219 $ — — % 2028 $ 10,162,871 $ -3,361,348 -24.85 % 2029 $ 10,137,372 $ -3,386,847 -33.33 % 2030 $ 10,111,873 $ -3,412,346 -33.66 % 2031 $ 10,111,873 $ -3,412,346 -33.75 % Claiming 25% less in Greater powntown TIF revenue will provide additional general fund levy tax dollars due to the growth that the improvements created in the GDTIF District. The additional general fund levy tax dollars estimated to be returned to all taxing bodies in Fiscal Year 2028 based on the estimated Fiscal Year 2027 consolidated rate is as follows: - liv- Page 1504 of 2358 ' . • • • •. -• : � •• • • :�• - - Dubuque Community School District 37.75 % $ 1,284,104 City of Dubuque 36.26 % $ 1,233,420 Dubuque County 19.96 % $ 678,959 Northeast lowa Community College 2.75 % $ 93,544 Sunnycrest Manor County Hospital 1.89 % $ 64,290 Dubuque Agricultural Extension 0.41 % $ 13,947 Dubuque City Assessor 0.98 % $ 33,336 Total 100.00 % $ 3,401,600 The following are projects included in the FY 2027-2031 CIP: Downtown Master Plan Update (page 357) -This project ($150,000) provides for the preparation of a Downtown Master Plan that will provide a comprehensive vision and strategic framework to guide future development, investment, and revitalization efforts in Dubuque's downtown core. Jackson Park Restroom Building (page 24) -This project ($100,000) provides for additional funding for the Jackson Park restroom building. Initial funding was approved in FY 2020, but due to COVID-19, the project was put on hold. Five Flags Building Improvements (page 29) —This project ($5,869,457) provides funding for improvements to the building (arena, theater, lobby areas, exterior) and its equipment. With existing funds of$1,206,410, there is $5,869,457 available. This is a substantial decrease from the approximately $24 million previously available. Five Flags Marquee Replacement (page 30) —This project ($133,500) provides for replacement of the video marquee located at 4th and Locust. It is critical to relaying information to people driving or walking by the building. The current marquee was installed in 2018. The life expectancy is 7-9 years. A new marquee would have an upgraded screen with higher resolution resulting in better clarity, more user friendly, and more efficient. Five Flags Boiler Replacement (page 31) —This project ($410,000) provides funding for replacement of three 2 million BTU boilers which provide heating for the arena. The current boiler system was installed in 2006 and has a replacement schedule of 20 years. Future boilers are more energy efficient. Five Flags Recirculating Pump Replacement (page 32)—This project ($40,700) provides for the replacement of two recirculating pumps that are responsible for keeping the warm water for sinks readily available by circulating the hot water. - Iv- Page 1505 of 2358 Five Flags Emergency Generator Replacement (page 33) —This project ($870,400) provides for replacement of the emergency standby generator located at 5th Street which provides power to critical systems inside of the building during a sudden loss of power. The current generator was installed in 2000 and is nearing the end of life expectancy of 30 years.A new generator would be more efficient and environmentally friendly. Grand River Center Dishwasher and Water Softener Replacement (page 43) -This project ($263,000) provides for a dishwasher and water softener replacement as they are original to the venue and reached its industry standard life span.After running dishes through the current dishwasher, they are coming back spotted which leads to concerns when placed in front of the guests. Oak View Group (OVG) conducted an in-depth review of the venue's kitchen requirements. The examination focused on on elevating the culinary experience for the guests to delivering a refined and exceptional food experience. Grand River Center Roof Restoration (page 44) -This project ($1,383,000) provides for restoration of the roof on the Grand River Center. The roof was installed in 2002 and restoration is critical to prevent expensive damage if the roof begins leaking. Grand River Center HVAC System Evaluation (page 45) -This project ($35,000) provides for a consultant to evaluate the HVAC system, software, and controllers. The current system is original to the building, outdated, and difficult to service. Port of Dubuque Street Extension (page 281) -The city is moving forward with further development in the Port of Dubuque. Specifically, there is approximately 13 acres of vacant property on the north side of 5th Street. These funds ($100,000)will provide money to create an entry road to that site and to plan for the potential future realignment of Ice Harbor Drive to line up with that entry road. Railroad Crossing Safety Improvements and Quiet Zone Implementation (page 297) -This project ($833,104) provides funding to study the feasibility of implementing railroad crossing safety improvements which could facilitate establishing railroad quiet zones within jurisdictional areas. Federal Building Renovation (page 334) - This project ($8,645,473) provides funding in FY27 for major HVAC upgrades to replace existing equipment that is beyond its expected service life and subject to frequent or catastrophic breakdown. FY28 and FY29 provides funding for the second phase of HVAC upgrades. Downtown Bike Lockers (page 336) -This project ($30,000) funds the installation of 4-5 weatherproof bike lockers per year at the downtown building facilities assigned to the Facilities Management Team. Greater powntown Rehabilitation and Housing Incentive Program (page 338) —This program ($1,970,403) consolidates three previously separate initiatives-6052000004 (Greater powntown Housing Creation Grant Program), 6052000002 (Downtown Rehabilitation Grant Program), and 6052000009 (Central Avenue Housing Forgivable Loan)—into a single, streamlined tool to support the revitalization of the Greater powntown Urban Renewal District. The program supports both commercial revitalization and housing creation, with a focus on adaptive reuse, historic preservation, and equitable access to housing. This is a substantial reduction from previous available funding. - Ivi - Page 1506 of 2358 Downtown Storefront Activation Program (page 340) -This new project ($400,000) provides for$25,000/year toward City financial assistance to prospective storefront tenants for security deposits plus 25% of the first six months' rent, requiring matching financial support from the building owner (25%) and the tenant (50%) as partners in the business's success. In addition, $75,000/year will be dedicated to Dubuque Main Street's SWAP grant program ($15,000 of which is for administrative costs), which provides financial assistance for interior storefront buildout costs. The $100,000 annual allocation is anticipated to assist up to 20 businesses with the rent relief portion of the program, and up to 6 businesses with storefront buildout costs. Smart Parking System Implementation (page 344) -This project ($1,490,175) provides funds for way finding signage throughout the City of Dubuque. With modifications to parking ramps and lots along with removing parking lots, new signage will be needed to improve traffic flow. New signs will be added and outdated signs will be removed. Parking Ramp Major Maintenance Repairs (page 345) -This project ($9,161,567) funds major renovation work needed at the lowa, Locust, 5th Street, Five Flags, 10th and Central, and Intermodal ramps. Funding will address structural repair items and needed mechanical, electrical & plumbing repairs. Municipal Parking Lot Maintenance (page 346) - This project ($196,182) provides for maintaining the surface of 14 off-street municipal parking lots. This project also includes signage, landscaping, and screening improvements to surface lots. Lots include: Lot 2 (9th and Bluff), Lot 3 (5th and Bluff), Lot 5 (City Hall Lot), Lot 6 (Library Lot), Lot 7 (3rd and Main), Lot 10 (5th and Main), Lot 12 (4th and Central), Crescent Community Health Center Parking Lot, Lot 4 (12th and Bluff), Port of Dubuque Surface Lot, Federal Building Parking Lot, Elm Street Parking Lot, Ice Harbor Drive Parking Lot, and Lot 9 (3rd and Locust). The funding for maintenance of municipal parking lots provides for pavement crack sealing, repairs, line striping, and seal coating surfaces of municipal parking lots. Homeowner Rehabilitation Program (page 350) -This project ($2,741,588) provides loans utilizing Community Development Block Grant (CDBG), Local Housing Trust Fund, and Local Match funding for loans to owner-occupied single family or duplex properties for maintenance and rehabilitation of their homes. The Program provides loans up to $40,000, at 0% interest, with affordable payments based on the applicant's income. Loans may be made for greater amounts if approved on a case-by-case basis by the Community Development Advisory Commission. This program has been in operation since 1978. Downtown ADA Assistance Program (page 352) -This project ($185,000) provides assistance to residents and businesses to ensure facilities in the Downtown Urban Renewal Area are fully accessible and inclusive to all persons regardless of abilities. This includes parking lots, retail and wholesale stores, restaurants, cafes, taverns, gas stations, public buildings, lodging, schools, parks, and entertainment venues. The program is designed to assist businesses with the cost of becoming ADA compliant. Qualified applicants can receive up to 50% of the cost of the project from the City of Dubuque, at a maximum amount of$5,000 per property. North Cascade Housing TIF District In FY 2014 the City created the first housing TIF district in the Timber Hyrst subdivision off of North Cascade Road. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income(LMI) residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City - Ivii - Page 1507 of 2358 initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. This district expired in FY 2025 and all certified debt has been collected. The additional tax dollars estimated to be returned to all taxing bodies annually based on the estimated Fiscal Year 2027 consolidated rate is as fol lows: ' . . • • •. -• : � •• • • :.• - Dubuque Community School District 37.75 % $ 589,631 City of Dubuque 36.26 % $ 566,358 Dubuque County 19.96 % $ 311,763 Northeast lowa Community College 2.75 % $ 42,953 Sunnycrest Manor County Hospital 1.89 % $ 29,521 Dubuque Agricultural Extension 0.41 % $ 6,404 Dubuque City Assessor 0.98 % $ 15,307 Total 100.00 % $ 1,561,937 English Ridge Housing TIF District In FY 2015 the City created a housing TIF district in the English Ridge subdivision off of Stone Valley Drive. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater powntown TIF Area. This district expires in FY 2026. The additional tax dollars estimated to be returned to all taxing bodies annually based on the estimated Fiscal Year 2027 consolidated rate is as follows: - Iviii - Page 1508 of 2358 ' . • • • •. -• : � •• • • :�• - - Dubuque Community School District 37.75 % $ 226,916 City of Dubuque 36.26 % $ 217,960 Dubuque County 19.96 % $ 119,980 Northeast lowa Community College 2.75 % $ 16,530 Sunnycrest Manor County Hospital 1.89 % $ 11,361 Dubuque Agricultural Extension 0.41 % $ 2,465 Dubuque City Assessor 0.98 % $ 5,891 Total 100.00 % $ 601,103 South Pointe Housing TIF District In FY 2017 the City created a housing TIF district in the South Pointe subdivision off of Highway 151 South. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater powntown TIF Area. This district expires in FY 2031 due to a three year extension. Rustic Point Housing TIF District In FY 2017 the City created a housing TIF district in the Rustic Point subdivision off of Derby Grange Road. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater powntown TIF Area. This district expires in FY 2028. N Grandview Housing TIF District In FY 2021, the City created a housing TIF district in the North Grandview subdivision off of North GrandviewAvenue. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. This district expires in 2033. - lix- Page 1509 of 2358 MISCELLANEOUS SOURCES Private Participation (1.10% of Total CIP) Private contributions represents the non-City share of the cost of several projects including private participation, fund raising, loans, grants and future resource allocation of City funds. Private participation funds included in the five year CIP include: Boyd Gaming contribution for the Port of Dubuque Ramp Maintenance ($467,157); Street Lighting and Traffic Signal Knockdown insurance reimbursements ($50,000); Canadian Pacific Kansas City Southern (CPKC) Railroad contribution for 14th Street Overpass project ($1,000,000); Milling sales from the Asphalt Milling Program ($375,000); Private Marina Companies contribution for Harbor Area Maintenance Dredging ($200,000); Jeffris Family Foundation contribution for the restoration of Eagle Point Park structures ($1,852,354); and IDOT reimbursement for the Pavement Marking program ($125,000). Special Assessments (0.08% of Total CIP) Special Assessments represent that portion of street and sanitary sewer improvement projects anticipated to be assessed to benefiting property owners. The $285,000 amount breaks down: (a) $250,000 for sidewalk lien special assessments, and (b) $35,000 for green alleys (non Bee Branch) special assessments. - Ix- Page 1510 of 2358 . � � • � � �� 3a'� .� f ��,, _ �, � � � � [7� � � . �' �� ,_,� � �, �. � � _ � y� I �/ �.\ - / � 'f�:�\ � i�,�,-" � �' 1 �t�,'� A"�_ __ __ . � •�� ' . .'"� _.__ � � �" � �� f. _ , — , - ._ � . _ ,.. � . :. : , - � =� • � �`� J - , �, �. •�� ,^ •� ` �/ '�''� R c�� / . '. .?r'�' .,k�, � _ �� . � '�n�� e �,. � u i � V� n � -'�R �� w y� . . . .. , _. �„� � Ry —.. .� -'� � rn� �i SuS.�.� _ � � �� -- � � '� �:, �� '�� Recommended for _ � ;_ { � ' ��, _ �.: , �y FISCAL YEAR 2027 � ,� � \ r , + � y -` -- -- � �� _ _ __ � �-� �- ,� • �� Y � • .3� � � ��1 �� .. . - ,... .. ... . .....:� ,. , � • � � � � � � t $ �� ' �V��.F�'�'�,"�a,, �gir�� is'�n��"�b��+�?�s�. �j�� Page 1511 of 2358 TABLE OF CONTENTS 2 Page 1512 of 2358 This page intentionally left blank. 3 Page 1513 of 2358 TABLE OF CONTENTS Resident's Guide to the Recommended Fiscal Year 2027 Budget (Table of Contents contains Hyperlinks; click on the section header to link directly to related page) PAGE PAGE Introduction Budget Overviews Council Mission, Vision, and Dubuque 2040 Vision Statement, City Administrative Staff 6 Council Five-Year Goals, City Council Policy Agenda and Management City of Dubuque Mayor and City Council 8 Agenda for 2025-2027 88 City of Dubuque Organizational Chart 9 Long and Short Term Goals 92 City of Dubuque Management 10 Budget Fact Sheet 101 Budget Public Meeting Schedule 12 Total Revenue and Expenditures —All Funds 103 Distinguished Budget Presentation Award 14 Long-Term Financial Plan Revenue Category Explanations 104 Budget Message Revenue Highlights 110 Budget Introduction 18 Expenditure Highlights 118 Budget Transmittal Memo 20 Costs of Municipal Services 123 Differences of FY 2027 Recommended Utility Rates and Comparisons 125 Budget from FY 2027 Proposed Property How Your Property Tax Rate and Tax Asking 39 Payment are Split — Pie Chart 127 City Manager's Guiding Principles of the Management Philosophy 40 Tax Rate and Comparison 128 Valuation Growth 129 Budget Process Comparison of Taxable Value Per Overview of Budgeting 44 Capita 131 Fund - Department Relationship 55 Impact of Budget on Classes of Key Terms for Understanding a Budget 57 Property 132 Summary of Decision Packages 142 Budget in Brief 62 Full-Time Equivalent Personnel Changes 156 Community Information Personnel Complement Summary 157 History of Dubuque 78 Demographics ............... 79 Land Use 80 Financial Summaries Services Provided to Residents/ How Your City Share of Property Recreation 81 Taxes are Distributed— Pie Chart 164 Major Employers & Employment by Industry 82 Net Operating Budget in Funds Non-Profit and Partner Board Including Tax Levy Revenue, by Representation 83 Department 165 Boards and Commissions 84 4 Page 1514 of 2358 TABLE OF CONTENTS (Continued) PAGE PAGE Financial Summaries (Continued� Capital Budget Distribution of City Portion of Property Capital Improvement Program 214 Tax Payment— Residential Property Capital Improvement Program Example 166 Message 224 Budgeted Revenue by Category— Pie Capital Improvement Program Chart 167 Projects 281 Street Construction Improvement Total Revenues by Revenue Category 168 Program 300 Where the Money Comes From - Pie Chart 169 How Budgeted Expenditures are Funded 170 Policy Guidelines 304 How the Money is Spent 173 Expenditures by Department & State Program 174 Budget GlossarX Grand Total Expenditure Summaries 177 Glossary 356 Operating Budget by Major Categories 179 Acronyms 369 Operating Budget by Fund and Department 180 Fund Balance, Income, and Expense Summary 184 Summary of Fund Balance Changes 188 Community Development Block Grant Funds FY 2027 Annual Action Plan 192 Debt Summaries / General Obligation Debt and Debt Capacity Debt Service Fund Explanation 198 Statutory Debt Limit .... 200 Statutory Debt Capacity 202 Total Debt Outstanding 203 General Obligation Debt By Capita 204 Summary of Bonded Indebtedness 205 Retired Debt Versus New Debt 209 Bond Rating 210 5 Page 1515 of 2358 CITY of DUBUQUE, IOWA RESIDENT'S GUIDE to the RECOMMENDED FISCAL YEAR 2027 Budget CITY MISSION STATEMENT Dubuque city government is progressive and financially sound with residents receiving value for their tax dollars and achieving goals through partnerships. Dubuque city government's mission is to deliver excellent municipal services that support urban living; contribute to an equitable, sustainable city; plan for the community's future; and facilitate access to critical human services. 2040 VISION STATEMENT Dubuque 2040 is a sustainable and resilient city, an inclusive and equitable community where ALL are welcome. Dubuque 2040 has preserved our Masterpiece on the Mississippi, has a strong, diverse economy, and expanding connectivity. Our residents experience healthy living and active lifestyles; have choices of quality, affordable, livable neighborhoods; have an abundance of diverse, fun things to do; and are successfully and actively engaged in the community. CITY COUNCIL Brad M. Cavanagh, Mayor David T. Resnick Chris T. Staver Tyson J. Leyendecker Laura J. Roussell Danny C. Sprank Katy A. Wethal ADMINISTRATIVE STAFF Michael C. Van Milligen City Manager Crenna M. Brumwell City Attorney Adrienne N. Breitfelder City Clerk Cori L. Burbach Assistant City Manager Jennifer M. Larson Chief Financial Officer Laura M. Bendorf Budget Manager Shannon J. Soppe Budget & Financial Analyst Nikesh Shah Budget & Financial Analyst Stephanie A. Valentine Executive Assistant Mia F. Burbach Administrative Assistant Kaia K. Humpal AR & AP Clerk Randy W. Gehl Public Information Officer Kristin R. Hill Communications Specialist Jesse W. Gavin Communications Specialist 6 Page 1516 of 2358 This page intentionally left blank. 7 Page 1517 of 2358 \ TxE c�TY oF G��'�OF OGe For city council member bios,and information DT 7� � `� ��" G on cit council wards,meetin s a endas and s; ,� �A P Y 9 , 9 � : , U � :, �PETITE 'T minutes,and more,visit cityofdubuque.org/citycouncil. �NUIT 0 '',,� Masterpiece on the Mississippi �,.,.=.�,�`"; O� ,,s..........._.-��r � DUBUQUE Mayor Brad M.Cavanagh C I TY C O U N C I L � � 565 Fenelon Place "�� Dubuque,lowa 52001 Phone:(563)690-6502 � bcavanagh@cityofdubuque.org Contact Inf ormation Term Expires:Dec.31,2o2s ; At-Large At-Large '°j David T. Resnick Chris T.Staver � �,' 2341 Coventry Park,#207 � � ^ 1027 Barbaralee Dr. Dubuque,lowa 52001 '�� Phone:(563)690-6504 Dubuque,lowa 52003 Phone:(563)690-6503 � dresnick@cityofdubuque.org cstaver@cityofdubuque.org Term Expires:Dec.31,2027 Term Expires:Dec.31,2029 First Ward : =� Second Ward �. Tyson J. Leyendecker �; � �' Laura J. Roussell �_ � 1760 Overview Ct. � ,� 3224 Bittersweet Lane , ` Dubuque,lowa 52003 � � � Dubuque,lowa 52001 � Phone:(563)690-6505 Phone:(563)690-6506 tleyendecker@cityofdubuque.org � � Iroussell�cityofdubuque.org Term Expires:Dec.31,2029 � Term Expires:Dec.31,2027 Third Ward Fourth Ward ; Danny C. Sprank ��" Katy A.Wethal 2473 Jackson Street �--7! 560 Fenelon Place � Dubuque,lowa 52001 Dubuque,lowa 52001 Phone:(563)690-6507 � Phone:(563) 690-6508 dsprank@cityofdubuque.org � kwethal@cityofdubuque.org Term Expires:Dec.31,2029 Term Expires:Dec.31,2027 To send an email to the entire City Council,submit a contact us form at: \ . . . . - . . . . . $ Page 1518 of 2358 • � • • TFDUB E M�eterpiere on the Mississippi � • • Library _ _ ' '• Management/Strategic Partnerships •�" Sustainability Community Impact Communications &Neighborhood � Support Multicultural Family Center � Economic Engineering � Development Arts&Cultural Facilities Affairs Management Emergency Fire Communications Ambulance Emergency Services Management Housing& Finance Community � Development Inspection& Construction Services Health Human Services Rights Human Parks& Resources Recreation Parks Recreation CivicCenter Grand River Information Police Center � Technology Geographic Information Systems Planning Public Services Works Transportation Water Services Parking Transit Water& Resource Recovery Center KEY � � � Elected by the Appointed by the Appointed by the Appointed by the Appointed by the Citizens of Dubuque City Council Library Board of Airport Commission City Manager Trustees CM004-22326 9 Page 1519 of 2358 � City of Dubuque - THE��TY°F �` DUB E DEPARTMENTMANAGERS MaSte�,te�e�,�t,1eM1ssiGst�pi � Airport Fire/Rescue s Planning Services Todd Dalsing /� 1 Amy Scheller Wally Wernimont ^ Airport Director Fire Chief +� Planning Services Director '�y 563-589-4127 � 563-589-4160 ""'�� 563-589-4210 , , tdalsing@cityofdubuque.org �- aschelle@cityofdubuque.org � i wwemimo@cityofdubuque.org � Communications Health Police Randy Gehl Mary Rose Corrigan Jeremy Jensen �, Public Information Officer '�,"� Public Health Director � � �' Police Chief �, � 563-589-4151 ' �i 563-589-4181 563-589-4410 �' rgehl@cityofdubuque.org � mcorriga@cityofdubuque.org , jjensen@cityofdubuque.org i Community Impact& Housing&Community Public Works Neighborhood Support Development arielle swift Antonio Mouzon Maddy Haverland Public Works Director - Community Impact& Housing&Community � 563-589-4250 Neighborhood Support Director Development Director � \ aswift@cityofdubuque.org "� 563-582-3681 563-589-4230 amouzon@cityofdubuque.org mhaverla@cityofdubuque.org Strategic Partnerships � Economic Development � Human Resources anderson sainci Jill Connors Shelley Stickfort �� Director of Strategic Partnerships Economic Development Director p'� Chief Human Resources Officer 563-589-4326 , -+ 563-589-4213 ' 563-589-4125 asainci@cityofdubuque.org ��"��,� , jilconno�a cityofdubuque.org sstickfo@cityofdubuque.org � Sustainability Emergency .� - Human Rights P � �ina eell � �� COMMu111Cdt1011S ,,r� Jason Lehman � �� Director of Sustainability � Jessica George-Rethwisch _ Interim Human Rights Director 563.690.6038 ' �� /� gbell@cityofdubuque.org Emergency Communications 563-589-4190 `�� Director , jlehman@cityofdubuque.org �� 563-589-4415 + Transportation jgeorge@cityofdubuque.org Information Technology � Ryan Knuckey `O�'"�"/ Transportation Services Director Joe Pregler �>, • 563-589-4341 _ Engineering Chief Information Officer � Gus Psiho os ' �„' rknuckey�a cityofdubuque.org Y 563-589-4280 ��, f� � City Engineer � jpregler@cityofdubuque.org � ' 563-589-4270 ` ' � � Water gpsihoyo@cityofdubuque.org Christopher Lester Librdry Water Department Director Nick Rossman � FindnCe Library Director 563-589-4291 _ , Jennifer Larson • 563-589-4225 ,� clester@cityofdubuque.org �� Chief Financial Officer nrossman@camegiestout.org � 563-589-4398 �j, Water&Resource �� jlarson@cityofdubuque.org `� ReCoveryCenter Parks&Recreation " oeron Muehring �, Matt Kalcevich i-�-6 � Water&Resource Recovery Parks&Recreation Director Center Director Clty Marlqg@I''S O}fiCe 563-589-4263 �Y� � 563-589-4176 �� Mike Van Milligen � , mkalcevi@cityofdubuque.org dmuehrin@cityofdubuque.org -�"� ""` "i City Manager .., _ ' 563-589-4110 ctymgr@cityofd u buq ue.org ��., City Attorney's Office City Clerk's Office � � Cori Burbach � Crenna Brumwell Adrienne Breitfelder Assistant City Manager City Attorney City Clerk F' 563-589-4110 � � 563-583-4113 563-589-4100 « .�� cburbach@cityofdubuque.org �� cbrumwel@cityofdubuque.org � 4� abreitfe@cityofdubuque.org J. �_�r �� ' � �� - Stephanie Valentine - Jason Lehman , Trish Gleason �- Executive Assistant `;;�^� Assistant City Attorney \ Assistant City Clerk "'� 4 563-589-4110 � '1 563-589-4381 n" 563-589-4100 '' � - svalenti@cityofdubuque.org � � jlehman@cityofdubuque.org �' tgleason@cityofdubuque.org _ ; • � 10 Page 1520 of 2358 This page intentionally left blank. 11 Page 1521 of 2358 CITY COUNCIL'S FISCAL YEAR 2027 BUDGET PUBLIC MEETING SCHEDULE DATE DAY TIME PLACE TOPIC March 23 Monday 6:30 p.m. Council Public Hearing on Property Tax Levy Chambers April 6 Monday 6:30 p.m. Council Budget document presentation to Chambers City Council April 7 Tuesday 6:30 p.m. Council Engineering Chambers Public Works Water Water& Resource Recovery Adjournment April 9 Thursday 6:30 p.m. Council Housing Chambers Planning Economic Development Purchase of Services Transportation Services Adjournment April 13 Monday 6:30 p.m. Council Library Chambers Five Flags Civic Center Grand River Conference Center ImOn Ice Center Recreation Parks Adjournment April 15 Wednesday 6:30 p.m. Council Human Resources Chambers Information Technology Communications Finance Adjournment April 16 Thursday 6:30 p.m. Council City Manager's Office Chambers City Council City Clerk's Office City Attorney's Office Adjournment April 21 Tuesday 6:30 p.m. Council Airport Chambers Human Rights Community Impact and Neighborhood Support Multicultural Family Center Adjournment April 22 Wednesday 6:30 p.m. Council Police Chambers Fire Emergency Management Emergency Communications Health Adjournment April 28 Tuesday 6:30 p.m. Council Public Hearing to Adopt FY 2027 Chambers Budget �2 Page 1522 of 2358 This page intentionally left blank. 13 Page 1523 of 2358 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Dubuque Iowa For the Fiscal Year Beginning July Ol, 2025 C��. P� 7�,�u Executive Director Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Dubuque, lowa, for its Annual Budget for the fiscal year beginning July 1, 2025. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. This City of Dubuque has been awarded this honor for the past 20 years in a row. 14 Page 1524 of 2358 This page intentionally left blank. 15 Page 1525 of 2358 CITY MANAGER'S BUDGET MESSAGE 16 Page 1526 of 2358 This page intentionally left blank. �� Page 1527 of 2358 Budget Message Dubuque THE CITY OF � All-America Cii� NAIIONAI.C]VI(:L1=KUF B E ' ' I � 2007*2012*2013 Masterpiece on the Mississippi zoi�*Zoi9 BUDGET INTRODUCTION Attached for your review is the Fiscal Year 2027 Recommended Budget. The Budget and Fiscal Policy Guidelines are developed and adopted by City Council early in the budgeting process in order to provide targets or parameters within which the budget recommendation is to be formulated. The budget recommendation presented by the City Manager may not meet all of these targets due to changing conditions and updated information during budget preparation. To the extent the adopted budget varies from the guidelines, an explanation is provided following the Budget Transmittal Message. The following Fiscal Year 2027 Budget Transmittal Message is written in March as recommended by the City Manager to the Honorable Mayor and City Council. A series of Budget Hearings take place following the presentation of the recommended budget, to allow for public input and analysis. This budget was presented on April 6, 2026 to the Honorable Mayor and City Council. �$ Page 1528 of 2358 Budget Message This page intentionally left blank. �9 Page 1529 of 2358 Budget Message Dubuque THE CITY OF � All•America Ciiy U B E �,��K��,�� , � � ► Maste iece on the Mississi i Zoo�.Zolzizo13 �p pp zoi��2oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2027 Recommended Budget DATE: April 3, 2026 The strong foundation of this budget recommendation is the Mayor and City Council Goals and Priorities adopted in September, 2025: FIVE-YEAR GOALS — • Haolthy o�d Sofe Community ■ finantially Responsible. High-Pe�formante City Orgonizotion: Susiok�obl8,Equltabls,Ond EtteCLNe Serv�Ca OeNv�ery • Robust local Economy: O�re�'se 9u�k�esses ond Jobs wkh Eo�nomiC ProsP�kY . livable Neighborhoods and Housing: c3rea vaoe to u�re ■ Sustainable Environment: Preserviny and EMonchg Noturd Resources • Connected Community: Equltobi9 TtcnspOrtotlOrL teCM�Obgy Inhcstruaure.and Mob�Ry • Diversa Arts.Cufture,Po�ks,and Recreation Experiancos and Activitias 20 Page 1530 of 2358 Budget Message 2025-2027 Priorities: Top Priorities (r�� alphnbetrca! order) ■ Commercial Air Service Future: Strategy and Action Plan to Sustain and Expand ■ Comprehensive Fire Station Location and Facilities Study ■ Fire Department Staffing Increases ■ Police Department: Full Staffing and Hiring ■ Sanitary Sewer Investments and Implementation • Catfish Creek Sanitary Sewer Project • Cedar Street Lift Station and Force Main • Chaplain Schmitt Island Sanitary Sewer • Cooper Placef Maiden Lane Project • Grove Terrace Project • Harvard Street Project • Hempstead Street Project • Sanitary Sewer Force Main Stabilization Project • Sanitary Sewer Consent Decree Compliance • Terminal Street Lift Station and Force Main • Other Projects ■ Sports Complex Development ■ Stormwater Management Investments and Implementation: • 17th and Elm Street Stormwater Project • 17th and Locust Street Stormwater Project • Bee Branch Gate& Pump Station Project • Detention Ponds Maintenance • Individual Neighborhood Investments • Kaufmann Avenue Storm Sewer Improvements ■ Street Maintenancef Rehabilitation Program High Priorities (in alphabericol order) ■ Continued Implementation of Central Avenue Revitalization Plan ■ Downtown Master Plan Update ■ Dubuque Law Enforcement Center (DLEC) Short- Term Facility Enhancements and Future Plan ■ East-West Corridor/Roundabouts Projects ■ Next Phases of Chaplain Schmitt Island Development ■ Parks and Recreation Master Plan Adoption and Implementation ■ Water Resource and Recovery Center Facility and Process Improvements and Odor Reduction 21 Page 1531 of 2358 Budget Message The theme for the Fiscal Year 2027 budget recommendation is a comprehensive, future-focused investment in Dubuque's core infrastructure and community assets — prioritizing safety, streets, and access to quality services. The budget aims to ensure that Dubuque remains a safe, healthy, and vibrant place while preparing for growth and evolving community needs. For Fiscal Year 2027 I respectfully recommend 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. 1 . . . . - . ' � • - . - 1 Property Tax Rate $10.0637 $10.1648 1.00% $0.10 Property Tax Asking $29,872,253 $31,940,934 6.93% $2,068,681 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 this recommendation the City of Dubuque would still have the lowest property tax rate of the eleven cities in the State of lowa with a population over 50,000. 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. I asked city assessor Troy Patzner for some information about the assessed value of residential properties in the North End. He responded as follows: "The below data shows the percentage change of value on residential from three different revaluation cycles, 2015, 2021, and 2025. I had the north end neighborhoods separated from the rest of the City. It looks like in 2015 the north end hardly changed at +.3%, as compared to the rest of the city which went up 3.14% as compared to ten years later when they increased slightly more than the rest of the city neighborhoods at 9.66%." Assessed Value Changes . . . � - � � � � � - � � . - . - . - North End +9.66 % +9.48 % +0.30 % Rest of City +8.98 % +10.25 % +3.14 % 22 Page 1532 of 2358 Budget Message Some of the increase in assessed value in the North End can be attributed to the fact that the city and others have been investing hundreds of millions of dollars in the North End. Some significant examples include the $250 million invested in the Bee Branch Creek Watershed Flood Mitigation Project, millions of dollars into Comiskey Park, a new roundabout at Kerper Boulevard and Kerper Court, new sanitary sewers on Kerper Boulevard, millions of dollars into Crescent Community Health Center, $80 million in Chaplin Schmidt Island, soon to be almost $50 million in the 14th St. Railroad Overpass and Elm Street and 16th Street complete streets. The city also had financial assistance programs to help those who had experienced flooding replace furnaces, water heaters, and repair homes. All of this has led to the homes increasing in value, which means one of the most valuable assets a resident possesses is becoming more valuable. For FY2027 there are $2,968,870 in general fund improvement package requests. This budget recommendation includes $597,760 for recurring improvement packages and $1,120,636 for non-recurring improvement packages. The non-recurring improvement packages are funded by Inflation Reduction Act rebate in the amount of $188,737 for the Climate Action Coordinator and the energy savers program, and $931,899 of non-recurring improvement packages are funded from the $5.3 million in internal loan repayments from the Greater powntown TIF and Dubuque Industrial Center TIF Districts. The additional nine firefighters recommended are funded by a Federal SAFER grant and previously approved ambulance fee increases. The remaining $349,684 in recommended recurring improvement packages are funded by a portion of the 25% of Greater powntown TIF District that will be returned to taxing bodies in Fiscal Year 2028 and beyond. If the City Council does not approve claiming only 75% of the Downtown TIF revenues beginning in Fiscal Year 2028 we will need to eliminate all but the 9 new Firefighters from the recurring improvement packages and cut $702,793 from the Fiscal Year 2027 general fund operating budget. 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 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. . . - . - . . . . - . . - . . - . . - . - . - Residential: $889.20 $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 23 Page 1533 of 2358 Budget Message . . - . - . . . . - . . - . . - . . - . - . - Industrial: $716.01 $679.03 -$36.98 -5.2 % $150,000 value & below 8 8 Industrial: $2,074.61 $2,051.27 -$23.34 -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 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 programs that provide grants to outside agencies. In the March 23, 2026, property tax public hearing interest was expressed in lowering the property tax increase. In Fiscal Year 2027 we face many special opportunities and challenges. I ask that we not add to the challenges side of this equation, potentially squandering the opportunities, by using one-time revenues, to pay for recurring expenses. Doing this without a long-term funding plan only digs a budget hole to dig out of in future budget years. It creates a future self-inflicted budget crisis. Using general fund reserves to pay for recurring expenses is one of the way that using one-time revenues to pay for recurring expenses is a poor financial planning strategy. I respect the right of the Mayor and City Council to reduce budget expenditures to reduce the recommended property tax levy. I just ask that those reductions be recurring general fund expenditures. What needs to be ever present in our minds is that the State of lowa elected leaders have made it clear that they intend to enact property tax reform legislation that will negatively affect the Fiscal Year 2028 (beginning July 1, 2027) local government budgets. We do not want to do anything in Fiscal Year 2027 that will create additional funding issues in Fiscal Year 2028. 24 Page 1534 of 2358 Budget Message I am recommending increases in the Enterprise Funds as follows: Enterprise Fund Utility Rates � . . . - . � � , . Water* $22.50 $23.17 3 % Sanitar Sewer $31.84 $34.73 9 % Curbside Collection $18.11 $19.74 9 % Stormwater $11.03 $12.02 9 % *3,200 gallons per month is the average residential user with a 5/8 inch water meter. One important point is that low-income customers receive a 50% discount on their base city utility rates. During Fiscal Year 2026 the position of Economic Mobility and Neighborhood Support Director became vacant when Anderson Sainci was promoted to the Director of Strategic Partnership position. The Economic Mobility and Neighborhood Support Department was evaluated. I have eliminated the position of Economic Mobility and Neighborhood Support Director. I have also eliminated the Department of Economic Mobility and Neighborhood Support, while ensuring those important responsibilities are still being carried out. The Department of Economic Mobility and Neighborhood Support Administrative Support Professional also provided support to the Information Technology Department and to the Human Rights Department. The position has been transferred to the Information Technology Department and will continue to provide support to the Information Technology Department and the Human Rights Department. The Administrative Support Professional also now provides support to the 911 Emergency Communications Department. The Department of Economic Mobility and Neighborhood Support Community Engagement Coordinator Temwa Phiri responsible for neighborhood support has been transferred to the Community Impact Department. That department will now be called the Community Impact and Neighborhood Support Department. The Department of Economic Mobility and Neighborhood Support grant funded position of Economic Mobility Special Assistant, held by Corrine Rothblum, has also been transferred to the Community Impact and Neighborhood Support Department. I am recommending that beginning in Fiscal Year 2028 the city begin claiming only 75% of the Downtown TIF District revenues. From the unclaimed 25% taxing bodies would begin receiving on an annual basis the following: 25 Page 1535 of 2358 Budget Message � . . . . .. -. : � .. . • :�• - - Dubuque Community School District 37.75 % $1,284,104 City of Dubuque 36.26 % $1,233,420 Dubuque County 19.96 % $678,959 Northeast lowa Community College 2.75 % $93,544 Sunnycrest Manor County Hospital 1.89 % $64,290 Dubuque Agricultural Extension 0.41 % $13,947 Dubuque City Assessor 0.98 % $33,336 Total 100.00 % $3,401,600 In Fiscal Year 2027 the Downtown Urban Renewal TIF District would repay to the City of Dubuque internal loans in the amount of $5,060,682 and Dubuque Industrial Center TIF District would repay internal loans in the amount of $332,307 for a total of $5,392,989. These funds would be used as follows: Fiscal Year 2027 general fund operating expenses - $1,808,693 Fiscal Year 2027 general fund non-recurring improvement packages - $929,712 Fiscal year 2027-2030 internal loans to Refuse Collections Fund - $587,638 Fiscal year 2027 internal loans to Garage Service Fund - $180,693 The remaining $1.9 million would be held in reserve in case needed to help transition the city budget in Fiscal Year 2028 from any Fiscal Year 2028 State of lowa property tax reform legislation. If the City Council chooses to not add to the City reserves to be prepared for Fiscal Year 2028 State of lowa Property Tax Reform, I would ask that any use of these funds be for non-recurring expenses. The reduction in Downtown TIF revenues beginning in Fiscal Year 2028 by only claiming 75% is: � � . . . • 2027 $13,524,219 $— —% 2028 $10,162,871 -$3,361,348 -24.85% 2029 $10,137,372 -$3,386,847 -33.33% 2030 $10,111,873 -$3,412,346 -33.66% 2031 $10,111,873 -$3,412,346 -33.75% Even with the reduction in revenues available to the Downtown TIF District, the budget recommendation was able to increase funding for the Central/White Street Corridor Project, maintain funding for the 14th Street Railroad Overpass Project and create a new program to assist with filling up vacant downtown commercial spaces. Unfortunately, there did need to be some project funding reductions like for Five Flags and for developer incentives. 26 Page 1536 of 2358 Budget Message Project Funding • . - 1 . 1 1 1 . 1 . - Five Flags Renovation $23,464,000 $7,055,088 -$16,408,912 Downtown Rehab Grant Program $5,500,000 $5,504,390 $4,390 Downtown Storefront Retention Program $— $400,000 $400,000 Central/White Street $8,170,000 $11,170,000 $3,000,000 14th Street Overpass $39,351,910 $51,183,326 $11,831,416 East-West Corridor $1,240,275 $6,000,321 $4,760,046 Total $77,726,185 $81,313,125 $3,586,940 General Obligation (GO) debt is an important part of the Fiscal Year 2027 budget recommendation: New General Obligation Debt • . . . . � - • 1 1 : 1 ' 1 1 1 • . New G.O. Debt $12,991,499 $16,756,114 $15,288,879 $16,520,648 $15,114,208 $76,671,348 Much of this General Obligation debt is Essential Corporate Purpose debt and can be issued by a vote of the City Council. Some of this debt can be issued by a vote of the City Council, but is subject to a reverse referendum where residents can circulate a petition and then a referendum vote is required. Some of the G.O. debt would be recommended as a voter referendum. There are many decisions to be made over the next few years on major projects that will require debt that the scope, scale, and cost of the project are not known at this time. The most significant item that is in this category is the implementation of the Parks and Recreation Master Plan that was recently adopted by the Mayor and City Council. The Aquatics Center feasibility study has already begun, and other studies are recommended to begin with approval of this budget. Some of these capital projects will require a voter referendum. Following is a list of voter referendums in Dubuque County since 1979: 27 Page 1537 of 2358 Budget Message : . . 1979 Courthouse bond and addition failed 1979 NICC Levy failed 1980 NICC Levy passed 1982 DUBUQUE-TAX LEVY FOR PARK ON CITY passed ISLAND 1984 City Bond Dog Racing passed 1984 NICC Levy passed 1985 Dubuque Band Levy failed 1986 DBQ school tax levy passed 1986 LOST & Service Tax failed 1987 Wheel Tax failed 1988 Local sales and service passed 1988 E991 passed 1988 WD Bond failed 1989 Dubuque Pool passed 1989 GAMBLING passed 1989 WD Bond failed 1990 WD Bond failed 1990 Dubuque School Instructional support levy failed 1991 WD Bond passed 1991 DBQ Hotel tax passed 1992 DBQ Golf Bond failed 1993 DBQ Library tax failed 1993 DBQ Gas Company passed 1993 Interstate Power Company passed 1994 DBQ school tax levy passed 1994 NICC Levy passed 1994 Gambling Boat passed 1994 E911 surcharge passed 1995 DBQ school tax levy failed 1996 DBQ School renewal of physical plant levy passed 1997 NICC Levy failed 1997 DCSD Support Levy failed 1998 NICC Levy passed 1999 LOST & Service Tax failed 2000 County Jail Bond passed 2000 WD Bond failed 2000 WD Levy and Bond failed 2000 $4 million City/County Jail Expansion passed 2003 Baseball Stadium failed 2005 Establish Municipal Utility passed 2022 County Conservation Measure failed 2023 School Board - Public Measure failed 2025 School Board - Public Measure HB failed 28 Page 1538 of 2358 Budget Message The City is also using the lowa Finance Authority State Revolving Loan Fund (SRF) low interest debt program for sewer and water projects. A recent report from McKinsey and Company talks about the current State of potable water and sanitary sewer water infrastructure. The report says "As critical water infrastructure ages, maintenance expenditures go up." The report further says, "...our research shows the U.S. water utility sector faced an estimated $110 billion annual funding gap in 2024, primarily driven by significant investments in aging infrastructure, operating expenses, and water-quality regulations. By 2030, this gap could increase to approximately $194 billion." In 2025 the American Society for Civil Engineers issued a report title, "A comprehensive Assessment of American's Infrastructure." They issued a national report card: Drinking Water "C-": Funding gap = $309 billion Public Parks "C-": Funding gap = $44 billion Solid Waste "C+": Funding gap = $16 billion Transit "D": Funding gap = $152 billion Stormwater "D"/ Wastewater "D+" (including sanitary sewer): Combined funding gap=$690 billion Nationally, as the City of Dubuque faces locally, the biggest funding challenges are in wastewater and stormwater. While there are several major capital improvement projects in this budget recommendation, some that have already been mentioned, the Catfish Creek sanitary sewer projects, the stormwater projects on 17th/Locust Street, the 14th Street railroad overpass, and the digging of a new deep well for the water department are some of the largest. If the City Council feels the projected stormwater rate increase needs to be lowered, we could look at delaying some stormwater projects as we pursue federal grant funding opportunities. The City's top priority in operating the Water & Resource Recovery Center is to consistently meet its permit requirements and protect the environment and public health. At the same time, wastewater collection and treatment systems will inherently generate some level of odor. Organic material begins to decompose in the sewer system before it reaches the facility, and the biological processes used to remove pollutants naturally produce gases that can at times be detected offsite. Odor conditions can also fluctuate due to weather patterns, the characteristics of incoming wastewater, and normal variations in treatment system performance. While odors cannot be fully eliminated, the City is committed to minimizing their frequency, intensity, and duration through a comprehensive, multi-faceted approach. That approach focuses on controlling odor at its source through targeted chemical dosing, improving the reliability of treatment infrastructure, enhancing operational practices and data- driven decision-making, and advancing long-term planning. The following outlines the actions the City has already taken and the additional investments proposed in FY27 to continue reducing odor impacts while maintaining reliable treatment perFormance. 29 Page 1539 of 2358 Budget Message The City has implemented targeted chemical dosing strategies to directly reduce odor-causing compounds within the treatment process. Hydrogen peroxide dosing at the primary clarifiers is achieving approximately a 50 percent reduction in hydrogen sulfide, with limited additional benefit observed at higher doses. In parallel, ferric chloride dosing within the anaerobic digesters has reduced hydrogen sulfide concentrations from approximately 13,000 ppm to as low as 490 ppm, over a 90% reduction, and decreased struvite formation potential from approximately 330 pounds per day to around 40 pounds per day, again approaching a 90% reduction. Dosing is currently at approximately 140 gallons per day and is being incrementally increased toward an optimal range of 160 to 200 gallons per day. The goal is to have zero struvite formation. The City has budgeted approximately $460,000 annually for this program and is continuing to evaluate more cost-effective upstream dosing opportunities, including hydrogen peroxide application prior to digestion and at the Terminal Street Lift Station, to further reduce hydrogen sulfide loading to the facility. Improving equipment and system reliability remains a central focus, as many odor issues are tied to treatment systems not operating as designed. A key example is the activated sludge system, where challenges have contributed to elevated hydrogen sulfide emissions since last fall. Current efforts are focused on restoring all mixers to full operation and preparing to clean the worst-perForming of the three treatment trains to stabilize process perFormance. Building on this work, the Fiscal Year 2027 budget includes an improvement package to clean all three activated sludge trains over a three-year period, with funding of $42,500 annually to complete one train each year. This planned approach is intended to increase treatment efficiency, improve oxygen transfer, and reduce conditions that contribute to odor formation. The City is also advancing a proactive approach to digester management, with Fiscal Year 2026 funding supporting the cleaning of Digester #4 in June 2026. The Fiscal Year 2027 budget establishes annual funding to clean one digester each year. Routine cleaning, combined with ongoing chemical control, is expected to reduce future costs while improving perFormance and minimizing odor potential. The Fiscal Year 2027 budget also includes targeted investments to further improve system reliability and reduce the risk of odor-generating conditions. This includes $1,380,000 to improve overall system resiliency. These funds will allow the City to restore redundant systems and to maintain an inventory of critical spare parts to avoid extended outages caused by long procurement times. In addition, the budget includes $135,000 for process control monitoring improvements—specifically dissolved oxygen monitoring within the activated sludge system—to provide real-time visibility into system performance and support timely operational adjustments. The budget also includes $40,000 for real-time influent monitoring to better detect and respond to changes in incoming wastewater that could interfere with treatment processes. Together, these investments strengthen the City's ability to proactively manage the treatment system and reduce the likelihood of process upsets that contribute to odors. 30 Page 1540 of 2358 Budget Message The City is also advancing a comprehensive Facility Plan update that will guide how the WRRC meets community needs over the next two decades, with odor mitigation incorporated as a key consideration in evaluating future treatment and infrastructure options. In addition to long-term planning, this effort includes a focused evaluation of existing systems to ensure they are operating as intended and that operators have the knowledge and tools needed to effectively manage the treatment process. This includes enhanced training, improved process control strategies, and the development of data dashboards to better understand system performance in real time. In parallel, the City has transitioned from paper-based records to digital systems and is expanding its use of software integrated with SCADA data. SCADA (Supervisory Control and Data Acquisition) is a computer-based system that allows operators to monitor, control, and respond to equipment and processes in real time—helping ensure systems like the wastewater treatment plant running safely and efficiently. These efforts are strengthening data-driven decision-making and improving the City's ability to proactively identify and respond to conditions that could contribute to odor events. In addition, the City is making a significant investment in modernizing electrical controls across the WRRC through a $7.2 million program designed to enhance system reliability and operational performance. Phase 1 is already underway, with approximately $2.36 million under contract to replace motor control centers—the "brains" of the facility—in two of the seven process control buildings. The FY27-31 budget continues this progress by funding upgrades to the remaining buildings, positioning the WRRC with a strong, modern control foundation that supports consistent operations and long-term service to the community. The City is also advancing the Hauled High Strength Waste Improvements Project, an $8.1 million investment that will strengthen how hauled waste is received and integrated into the treatment process. This project will provide dedicated infrastructure and controls to ensure these waste streams are introduced in a manner that supports stable, effective operation of the anaerobic digesters as they were designed to function. The project is fully funded through hauled waste user fees and a federal grant, aligning system improvements directly with the users of the service while enhancing overall treatment reliability and performance. Together, these efforts, supported by the Fiscal Year 2027 budget, position the City to respond to odor challenges in the short term while proactively managing and reducing them over the long term, all while maintaining reliable, compliant treatment operations. An important part of this budget relates to the requirement from the U.S. Environmental Protection Agency (EPA). Within 10 years all private lead water service laterals must be replaced. The total cost of a project of this magnitude exceeds $60 million for almost 4,000 total private water service laterals. It is proposed for the next 5 years the city offer help with financing and implementation for property owners who volunteer to have their lateral replaced. After that 5 year period the city would need to implement a mandatory program to meet the EPA compliance deadlines. The city would assist with financing by accessing low interest long-term borrowing through the SRF program. Property owners would be assessed to make the payments. Since the lead service laterals cause no issues because the city treats the water to prevent lead leaching into the water the city will continue to advocate to the federal government to eliminate the 10 year requirement. 31 Page 1541 of 2358 Budget Message The City Council at their December 1, 2025, meeting approved adding five Firefighter/Paramedic positions in the current fiscal year (FY 2026). The authorized strength of the Dubuque Fire Department, including civilian and sworn positions, was 92.16 FTE in FY 2022 and is 109.16 FTE as of FY 2026, an 18.5% (17 FTE) increase in staffing over that four-year period. The addition of nine additional positions in FY 2027 will make it a 28% (26 FTE) increase in staffing since Fiscal Year 2022. The city will apply for a SAFER grant later this calendar year when the application process opens, then it is expected it would be several months before the city would learn of the results of the application. The results could be that all nine of the positions receive SAFER grant funding, some of the positions receive grant funding, or none of the positions receive grant funding. Based on Fire Chief Amy Scheller's experience in the SAFER grant process she believes Dubuque will have a very competitive application. If the city does not receive the SAFER grant in calendar year 2026 (FY 2027) to help with funding the nine new Firefighter/Paramedic positions the City Council has the options of reapplying for the SAFER grant in calendar year 2027 (FY 2028), phasing implementation of the nine new Firefighter/Paramedic positions (since the Fire Department has three 24 hour shifts that would most likely be three positions a year, one on each shift, for three years, leaving open the option to apply for a SAFER grant in future years for the positions not added in the first and/or second year), or decide to modify the funding plan to maintain the hiring schedule through a mid-fiscal year amendment of the FY 2027 city budget, which would take an evaluation of other approved general fund expenses. I am sure there are other options that could be explored. The Parks and Recreation Master Plan identifies the need for seven additional positions to fully support its implementation. While adding all seven positions was not financially feasible in Fiscal Year 2027, the budget recommends moving forward with two park maintenance technician positions at this time. These technicians would take responsibility for comprehensive park maintenance across the system. Including the position added for Eagle Point Park in the current fiscal year, this brings the total to three new park maintenance positions within a two-year period—demonstrating continued progress toward meeting the maintenance and service goals outlined in the Master Plan. In Dubuque Public Safety is a Citywide Commitment. Public safety in Dubuque is not the work of one department or a single set of responders. It is a shared responsibility woven into the daily operations of every service area across the City. From infrastructure and clean water to communications, planning, and community engagement, each department plays a crucial role in creating a safe, resilient, and thriving Dubuque. Together, their efforts demonstrate that safety is not only about reacting to emergencies—it is about preventing them, preparing for them, and creating the conditions that allow people to live their lives with confidence, stability, and trust. 32 Page 1542 of 2358 Budget Message Safety in the Air, on the Ground, and Throughout Daily Life At the Dubuque Regional Airport, safety begins long before a plane takes off or lands. Staff complete rigorous daily inspections, manage weather and wildlife hazards, maintain critical systems, and collaborate with pilots and emergency responders to ensure 24/7 protection for travelers. This proactive approach exemplifies how safety is embedded into operations, not simply responded to in moments of crisis. That same focus on prevention is found across the City. Public Works crews keep roads clear in severe weather, maintain stormwater and sewer systems, and care for the fleet that emergency responders depend on. Water Department staff run hundreds of tests every day to ensure clean drinking water, protect public health, and ensure firefighting capacity. At the Water & Resource Recovery Center, millions of gallons of wastewater are safely treated daily while programs like Industrial Pretreatment and FOG prevent hazardous backups and protect people, property, and the Mississippi River. These systems—airField safety, streets and utilities, water and wastewater—may operate largely out of public view, but they are the backbone of a safe and functioning community. When they work well, residents can move, work, and live without disruption. When incidents do occur, this strong foundation ensures that responders can act quickly and effectively. Safety Through Law, Regulation, and Responsible Growth Many of the City's departments protect residents by shaping safe environments long before emergencies or hazards occur. Planning Services enforces the Unified Development Code to maintain safe building practices, guide responsible land use, and ensure emergency access. Floodplain regulation, subdivision review, and zoning enforcement keep people out of harm's way and reduce long-term risks. Similarly, the City Attorney's Office plays a vital behind-the-scenes role by enforcing building, nuisance, and animal control codes; supporting criminal and civil proceedings; reviewing contracts and specifications for public safety components; and providing guidance across departments. The City Clerk's Office contributes through civil service hiring processes that ensure police and fire roles are filled with qualified professionals, by overseeing background checks, and by coordinating safe community events. Housing & Community Development reinforces safety through rental licensing, inspections, and environmental health programs—addressing lead hazards, structural issues, and fire risks. Their work helps reduce unsafe living conditions while improving long-term housing stability, a factor closely tied to overall community safety. Sustainability efforts, too, are essential to public safety. They address the long-term threats of extreme weather, air quality, and climate impacts. By protecting resources, lowering risks, and strengthening resilience, sustainability work ensures that Dubuque remains safe not only today but for generations. 33 Page 1543 of 2358 Budget Message Safety Through Community Connection, Equity, and Support Several departments focus on the human and social aspects of safety. The Community Impact & Neighborhood Support Department builds stability by reducing financial stress, connecting residents to resources, and supporting neighborhood-led improvements. These upstream interventions can prevent crises, reduce involvement with the legal system, and strengthen protective factors within families and neighborhoods. The Human Rights Department promotes psychological and physical safety by enforcing anti- discrimination laws, reducing threats and harassment, ensuring access to housing and services, and building trust between residents and City government. When people feel protected and respected, they are more likely to cooperate with authorities, report concerns, and participate in community life. The Carnegie-Stout Public Library provides safe public space for all residents—a place to learn, connect, cool down, warm up, or simply rest. Its educational programs and inclusive environment foster emotional, social, and economic stability. Parks and Recreation also contributes by maintaining safe, welcoming outdoor spaces. Parks offer physical activity, mental relief, and community connection. Through collaboration with police, engineering, public works, and other departments, park safety is supported year-round. These departments highlight that safety is not only physical; it is also social, emotional, and environmental. When residents have stable housing, welcoming spaces, and equitable treatment, public safety strengthens across the entire community. Safety in Emergency Response, Technology, and Coordination Several City departments are directly involved in emergency response. The Dubuque Fire Department responds to thousands of calls annually, from medical emergencies to hazardous materials incidents, while also conducting inspections, fire prevention programs, and rigorous training. Investments in equipment, staffing, and modernized tools ensure firefighters remain prepared for both routine calls and complex events. The Dubuque Police Department protects residents through law enforcement, problem solving, community partnerships, and the use of technology to address crime and neighborhood concerns. Highly trained personnel and strong community relationships are central to their mission. The 911 Emergency Communications Center is the first critical link in any emergency. Dispatchers gather essential information, coordinate multi-agency responses, use advanced technology to pinpoint locations, and provide lifesaving instructions until help arrives. They also support after-hours communications for multiple City departments and maintain vital situational awareness through citywide cameras and cross-jurisdictional connections. Communications staff support emergency response by coordinating crisis messaging, issuing public alerts, staffing the Emergency Operations Center, and managing the Alertlowa notification system. Their work ensures residents receive timely, accurate, and accessible information when it matters most. 34 Page 1544 of 2358 Budget Message Information Technology protects the digital infrastructure that all of these departments rely on— safeguarding against cyber threats, maintaining communications systems, supporting public safety software, and ensuring uninterrupted connectivity between departments. Transportation Services supports community safety by providing reliable transit that reduces congestion, improves mobility for vulnerable residents, and offers safe travel during severe weather. Together, these departments form Dubuque's operational readiness network—preventing harm, responding to emergencies, and ensuring continuity during crises. A Community Protected by Everyone What becomes clear across every department is a shared philosophy: public safety is everyone's responsibility. It is expressed through: • the engineering controls that prevent crashes and floods • the code enforcement that ensures safe housing • the communications that keep residents informed during crises • the economic and social programs that reduce instability • the infrastructure that moves water, protects roads, and maintains technology • the emergency responders who arrive when every second counts • the parks, libraries, and public spaces that offer refuge and belonging Safety is not the work of one department—it is the woven fabric of all City operations. Because of this collective effort, Dubuque is not just safer in emergencies; it is safer every day, in ways many may never see but all benefit from. The City of Dubuque is a Community Built on Service, Safety, Stewardship & Shared Purpose. Across Dubuque's government, one theme rises above all else: people serving people. From the moment person becomes a resident to the moment water flows safely from a tap, dozens of teams work together — often quietly, often unseen — to keep our community moving, thriving, and welcoming. These departments form an interconnected ecosystem of service, each contributing to a Dubuque built intentionally, compassionately, and with an eye toward the future. At our regional airport, staff operate not just a transportation hub, but a gateway to opportunity. Their work helps businesses recruit talent, supports medical transport when minutes matter, and welcomes visitors home with professionalism and hospitality. The airport connects Dubuque to the wider world — and connects the world to us. In City Clerk services, residents find their first point of contact with local government — a place to access public records, participate in council proceedings, pursue licenses and permits, and engage in meaningful civic involvement. The Clerk's Office safeguards the historical record of our governing body while creating clear pathways for the public to understand, influence, and participate in their government. 35 Page 1545 of 2358 Budget Message The Communications Office ensures that residents receive timely, trustworthy, accessible information amid today's whirlwind of noise, rumors, and viral misinformation. Their work protects the credibility of local government, helps residents understand and access city services, and keeps transparency at the forefront even in a fast-moving digital environment. Through Community Impact & Neighborhood Support, Dubuque embraces a bigger vision: that opportunity should never be accidental. This department aligns data, resident voice, and neighborhood engagement to remove barriers and help families move toward stability and long- term economic mobility. Their mission is not just to run programs, but to strengthen the entire ecosystem of community support. The Economic Development Department works quietly but powerfully behind the scenes — turning ideas into storefronts, revitalizing underused spaces, supporting local entrepreneurs, and aligning public tools with private investment. Their work helps shape a local economy rooted in resilience, creativity, and shared prosperity. Our 911 Emergency Communications team — the dispatchers who answer calls in crisis — serve with empathy, professionalism, and genuine human care. In a newly improved communications center, they continue to support residents with focus and compassion, inspired by the community they serve. In the Engineering Department, staff act as the city's in-house engineering firm, designing and maintaining streets, sidewalks, traffic systems, sewers, stormwater networks, and fiber infrastructure. Much of their work may be invisible to residents, but it shapes every trip made in Dubuque and ensures that movement throughout the city is safe, efficient, and reliable. For the Fire Department, the heart of their message is simple: their greatest strength is their people. Highly trained, deeply compassionate, and unwaveringly dedicated, these individuals show up on the worst days of people's lives with skill, steadiness, and humanity. They see people, not incidents — and their service reflects Dubuque's core values: integrity, responsibility, and care. The Housing & Community Development Department works directly with residents to improve safety, stability, and quality of life. Through permitting, inspections, rental licensing, rehabilitation, and neighborhood revitalization, they build trust through personal interaction and help ensure that every person has access to safe, supported housing. The Health Services team protects community wellbeing through food inspections, animal control, and investigations that prevent illness and injury before they occur. Their efforts reduce avoidable healthcare costs, prevent disease, and promote a healthier, safer community — much of it quietly, diligently, and behind the scenes. Human Resources supports the people who support the public. They recruit talented employees, provide training, ensure compliance with employment laws, and help maintain safe, respectful, workplaces. Their mission is to build a capable workforce that delivers reliable, high-quality service citywide, while creating a sense of belonging. 36 Page 1546 of 2358 Budget Message Dubuque's Office of Human Rights ensures that every resident has access to safety, dignity, fairness, and equal opportunity. Going beyond enforcing nondiscrimination laws, the office provides education, outreach, dispute resolution, and guidance that fosters a community where everyone belongs. The Information Technology Department serves as the city's hidden backbone — the "wizard behind the curtain" ensuring systems run smoothly, securely, and reliably. They solve problems before disruptions occur, strengthen cybersecurity, and make digital complexity feel seamless for residents and staff. The Carnegie-Stout Public Library, approaching its 125th anniversary, continues to be a cornerstone of literacy, learning, curiosity, and safe public space. It nurtures psychological, social, and economic wellbeing through accessible resources, programming, and a welcoming environment. In Parks & Recreation, the city is turning community feedback into a decade-long plan to enhance quality of life. The new master plan invites residents to dream, imagine, and collaborate as the department invests in spaces and programs that bring joy, health, and connection. Planning Services blends data, imagination, and community input to guide how Dubuque grows. Like urban storytellers, they help shape neighborhoods that feel connected and welcoming, ensure development is safe and sustainable, and paint the next strokes of the city's evolving landscape. The Police Department remains committed to disciplined operational excellence, strong partnerships, strategic innovation, and high-quality personnel — all in pursuit of keeping Dubuque as one of the safest places to live in the country. In Public Works, deeply skilled operators, technicians, and field staff maintain the physical backbone of the city. Their work is essential, demanding, and often invisible — from clearing storm drains to maintaining streets to ensuring emergency response is possible. They steward the infrastructure that keeps Dubuque functioning, safe, and resilient. Sustainability touches every aspect of daily life, from air and water quality to transportation, health, biodiversity, waste, and food systems. The city's sustainability work encourages residents to think broadly about how the community can thrive while protecting long-term environmental health. The city's transportation system, The Jule, connects people to possibility. Every bus route expands access to jobs, education, services, and opportunity. In FY27, The Jule continues its commitment to sustainability and community connection — because when mobility expands, community wellbeing expands with it. The Water Department works with precision and scientific rigor to ensure safe, clean, reliable drinking water. Through extensive daily and monthly testing, they safeguard public health, support essential amenities, and ensure Dubuque meets the highest standards of safety and emergency readiness. 37 Page 1547 of 2358 Budget Message Without the Finance Department nothing runs. Managing a $250 million annual budget, paying bills, making payroll, purchasing goods, and keeping employees safe is a big and important job. In addition to financial responsibilities, the Finance Department oversees the implementation of the City's organization-wide safety program. The City is committed to providing a safe and healthy workplace for all employees, and safety is treated as a core value at every level of operations. To strengthen this commitment, the City has established a multi-department safety committee and completed a comprehensive review of all safety policies and procedures to ensure alignment with OSHA standards and best practices. The Water & Resource Recovery Center operates around the clock, using chemistry, biology, engineering, and continual monitoring to protect the environment and public health. Their team blends technical excellence with a commitment to workplace culture, investing in reliability, innovation, and people as they prepare for the future. Finally, the City Attorney's Office and the City Manager's Office work closely with the Mayor and City Council to ensure departments have the tools they need to carry out the goals and priorities established by the City Council. 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. I want to thank Chief Financial Officer Jennifer Larson, Assistant City Manager Cori Burbach, Public Information Officer Randy Gehl, Budget Manager Laura Bendorf, Budget/Financial Analyst Shannon Soppe, Budget/Financial Analyst Nikesh Shah, Budget/Financial Analyst Nathan Kelleher, and Executive Assistant Stephanie Valentine for all their hard work and dedication in preparation of this budget recommendation. I respectfully recommend Mayor and City Council adoption of the Fiscal Year 2027 Budget recommendation, and I look forward to the multiple public input meetings to come. ��2�� GV�r Michael C. Van Milligen City Manager MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jennifer Larson, Chief Financial Officer Laura BendorF, Budget Manager 38 Page 1548 of 2358 Budget Message DIFFERENCES OF FISCAL YEAR 2027 RECOMMENDED BUDGET FROM MAXIMUM PROPERTY TAX DOLLARS RESOLUTION Tax Askinq The proposed property tax dollars resolution approved by the City Council on March 23, 2026 totaled $31,281,296 (including the debt service levy of$282,630). The recommended tax asking was unchanged from the proposed property tax dollars tax asking. Property Tax Paid by Average Homeowner The proposed property tax dollars resolution included a 3.00% increase for the average homeowner property tax payment for the City portion of their property tax bill assuming the Homestead Property Tax Credit is fully funded. The recommendation included in this budget provides a 3.00% increase. Property Tax Paid by Average Commercial Property The proposed property tax dollars resolution included a 18.10°/o increase for the average commercial property owner. The recommendation included in this budget is a 18.10°/o increase for the average commercial property owner. Property Tax Paid by Average Industrial Property The proposed property tax dollars resolution included a 17.88% increase for the average industrial property owner. The recommendation included in this budget is a 17.88% increase for the average industrial property owner. Tax Rate The Fiscal Year 2027 "City" portion of the tax rate is being increased by $0.10108 from the Fiscal Year 2026 rate of $10.06372 to a tax rate of $10.16480 per $1,000 of taxable assessed valuation. The proposed property tax dollars resolution established by City Council included a rate of $10.16480. The recommendation included in this budget is a rate of$10.16480 (1.00% more than FY 2026). 39 Page 1549 of 2358 MANA� EMENT �=' P H I L�S � P HY Dubuque uut�u�u�: i� _ � i , . �ve-T i me . . . �� All-America Mike Van Milligen � � � �'--__ City Winner Dubuque City Manager III�• ' � -� zoo�rzn�sni� 2017�t:?r��r� ,.� As a leader,it is rny responsibility to not ' '�.. only rnanage tasks and processes but also �. � � to understand and support the ernotional : � +��ell-being of our tearn rnernbers. Ernotional � - . � intelligence is the cornerstone of effective . � . ,,r leadership.Through self-a+��areness, .. - _. G-� r' rnanaging our o+��n ernotions,and exercising 'C,�- r� I ernpat hy for ourse lves an d ot hers +��e create � � � ;•" I ;�,� I ' . . . . .. . . - - � a+�rork environrnent+��here everyone feels valued and understood.This a pproach not � ' ' `7he conauc[or of crn orchescrcr Uoes only fosters collaboration and innovation but ' ' ` ` ' ' r�ot rmrke cr sounU. l,�e clepencls, also drives long-terrn success. Let us lead ••• for his power,on hls crbffiry to m�ke +��ith ernpathy,nurture a culture of trus�, and � " ' • ' ��r�pfe powerfuf.� ernpo+��er our tearns to thrive both personallV - Benjarnin Zander,Conductor, and professionally. Boston Philharrnonic � Guiding Principles 1. Be curious. 3. De�elop Partnerships Curiosity leads to a culture of learning and continuous Tearn rnernbers can be rnore effective by developing irnprovernent for our self and our organiZation. partnerships�t�ith other departrnents, residents,and - Be approachable and open to the input of others. other organiZations. - Being curious about various cultural approaches. - Forrn tearns that capitalize on individuals' strengths. and backgrounds allo��s us to irnprove - Develop shared goals,objectives,and decision- cornrnunication,navigate conflic�, and helps rr�aking processes. everyonefeel likethey belong. - Forrn partnershi�sthat reflectthevarietyof - 5triveto continually improve rnethods, process backgrounds and interests in the cornrnunity��e and policies serve. 2 Be problem sol�ers. 4. Hold each other accountable. Tearn rnernbers' approaches to issues should be to �ro-+��ay accountability involves both parties fecus on+��hat can be done to solve the problern. taking personal responsibility for their actions and - Create processes that allo+��for creativity and cornrnitrnents in a constructive and supportive rnanner. innovation. - Relationships are built at the speed of trust. - Be+��illing to askfor help and create a culture that - 5elf-accountability involves holding ourselves to a supports risk-taking. high standard and dernonstrating the behaviors and - Adapt decision-rnaking processesto include a characteristics+��e desire. va riety of voices and cornrnunication styles. - Mutual accounta bility requires consistent - Be data-driven and focus on irnproving cornrnunication, and creates an environrnent+��here cornrnunity outcornes for all. feedback is+��elcorned and thetearn+��orks together to+��ards cornrnon objectives. Dubuque aperates under the cauncil-manager farm ofi lacal government ,�� The City Council are elected by residents and hold policy-rnaking po+��er.They appoint a � professional,non-partisan city rnanager to oversee the day-to-day operations of the city. The council-rnanager forrn of governrnent+��as adopted by citizen referendurn in 1920. �� 40 This page intentionally left blank. 41 Page 1551 of 2358 BUDGET PROCESS 42 Page 1552 of 2358 This page intentionally left blank. 43 Page 1553 of 2358 Budget Process OVERVIEW OF BUDGETING INTRODUCTION The review and adoption of the budget is the single most important thing that a City Council does each year. The budget sets the tempo, capabilities, commitments and direction of the city government for an entire year. It is the yardstick against which the city operations can be evaluated. But what is a budget? The purpose of this narrative is to identify: a) what a budget is; b) why we prepare a budget; c) alternative types of budgets; d) major characteristics of the Dubuque budget system; and e) roles and responsibilities in preparing the annual budget. WHAT IS A BUDGET? A budget is several things: 1. The budget is a fiscal plan setting out anticipated revenue and expenditures for accomplishing a variety of services over a given time frame. The fiscal plan includes: a) an explanation of the services, activities, programs and projects to be provided by the City to the residents; b) the resultant expenditure requirements; and c) the resources available for meeting the expenditure requirements. 2. The budget is a rop cess concerned with the allocation of available resources among alternatives and competing departments, activities and programs. Cities rarely have enough money to be able to appropriate all the funds requested to all departments and activities and, as a result, there is considerable competition for whatever money is available. Budgeting, as a process, is concerned with developing an acceptable mix or balance between costs and services and represents the decisions made with respect to: a) quality and quantity of activities and projects to be undertaken; and b) financing of those activities and projects. 3. The budget is a policy document which: a) establishes the authority to spend funds, and levy and collect property taxes; b) represents a commitment to provide a specific level of service within a given amount of resources; and establishes criteria (objectives, measures and dollar limits) for evaluating and controlling expenditures, revenue collections and performance. Through the budget, policies are made, put into effect, and controlled. 44 Page 1554 of 2358 Budget Process 4. The budget is a leaal requirement. State law requires the City Manager to prepare the annual budget and the City Council to adopt the annual budget and certify it to the County Auditor by April 30th of each year preceding the beginning of the fiscal year on July 1st. The budget must be on a program - performance basis and show: a) expenditures for each program; b) income from sources other than property taxes; c) amount to be raised by the property taxation and the property tax rate expressed in dollars per thousand of assessed value; and d) comparisons between expenditures in each program and between levels of service. WHY DO WE BUDGET? WHY IS IT IMPORTANT? Why do we go through the agony and the work? There are several reasons: 1. To meet the legal requirement. 2. To establish spending and income-raising authority. 3. To establish a work program for the fiscal year (objectives) and present it to the public. 4. To manage and control resources and their use. 5. To assure the proper mix of costs and services. 6. To assure the most effective and efficient use of available resources. 7. To set the tempo and direction of the city government. 8. To prioritize policies and objectives. 9. To link dollars with results. ALTERNATIVE TYPES OF BUDGETS Line-Item Budget The most commonly used budget format in local government today is the line-item budget. A line- item budget is one which allocates money for specific expense items or objects of expenditure without reference to the purpose, activities or program they will serve. This type of budget lists expenditures by such categories as full-time salaries, overtime, office supplies, postage, travel, rental expense, maintenance of buildings and grounds, office furniture and equipment, etc. The principal advantage of a line-item budget is that it is easy to prepare and facilitates expenditure control. However, this form of budget tells very little about the purposes, activities and programs of the city it serves. For example, it shows the amount of money that has been budgeted for personnel, but it does not show the nature of the services such personnel are to provide. Furthermore, the traditional line-item approach does not show comparative costs and benefits of competing programs, thus making it difficult for the City Council and management to evaluate individual activities and allocate resources. These characteristics limit its usefulness as a device for giving direction and purpose to public service activities and programs. 45 Page 1555 of 2358 Budget Process Program Budget Local governments usually spend money to accomplish something more than purchasing goods and services. They are also concerned about programs, missions, or functions. A budget organized on the basis of its intended purpose is called a program budget. A program budget allocates money to functions or activities rather than to specific items of costs. A municipal budget of this type lists expenditures for such cost categories as protective services, leisure time opportunities, and administration. Few, if any, budgets are prepared exclusively on a program basis. Instead, program costs are usually broken into line items. The primary advantage of a program budget is that it shows the broad goals and purposes for which we are spending money and allows for setting priorities. The disadvantage is that it does not show the level of services that will be produced by the functions for which money has been allocated. This characteristic weakens its value as a tool for managing the quality and quantity of public service programs. Performance Budgeting Performance budgeting goes a step further than program budgeting by requiring the breakdown of service into workload or units of performance and the assigning of unit costs. A system of work measurement is used to evaluate productivity and effectiveness. The principal advantage of the performance type budget is that it shows both the activities of the city and the service levels of those activities and their respective costs. Thus, it can be a useful tool for regulating in a positive way, both the quality and quantity of city services. This characteristic makes the performance type budget the most useful of those types mentioned so far. However, it is also the most difficult to prepare. There are three reasons for this. First, it is difficult to define the units by which the work of the department or an activity or program can be measured. Second, even when the work unit can be defined, it may not be easy to establish a system, which will supply a reliable measure of the work output. And third, it requires much thought and study to establish acceptable service levels for various activities and programs. Zero Base Budgetinq Traditional budgeting, whether line-item or program-oriented, tends to focus on how much you spent last year as a beginning point for budget preparation. That is to say that it is incremental, it adds an increment on top of last year's spending level generally without challenge and without consideration of alternatives or trade-offs. Zero Base Budgeting (ZBB) is a system whereby each activity or program, regardless of whether it is a new or existing program, must be justified in its entirety each time a new budget is formulated. Rather than using the previous year's budget as a base, ZBB assumes no base; all activities old and new must be explained and justified each year. The agency starts at zero. ZBB measures the desirability, need and beneficiaries of services as well as the reasonableness of the proposed costs, alternatives to the activity, and trade-offs between partial achievement of goals and the ability to fund all proposed budget expenditures. ZBB accomplishes this by dividing all the proposed activities or services of the governmental body into units of manageable size, subjecting them to detailed examination, and ranking them according to their importance. Revenues are matched against the list of services according to their rank. High-priority services are funded first. If money runs out, the low-priority services are not funded. The characteristics of ZBB can be summarized as follows: 1. Scrutiny of old or existing activities as closely as new or proposed activities; 2. Reallocation of resources from low-priority activities to high-priority activities; 46 Page 1556 of 2358 Budget Process 3. Emphasis on alternatives (levels of expenditures and services and methods of providing services); and 4. Allowance for budget reduction or expansion in a planned, logical manner. Dubuque Budget A�proach The budget system being utilized by the City of Dubuque incorporates aspects of each of the several budget alternative types discussed here. The major characteristics of our budget system are: 1. It has line items for control and fiscal management purposes. 2. It is organized by program, department and fund. 3. It attempts to identify, analyze, and articulate the fundamental purposes and objectives of the Dubuque City government. This approach is intended to place emphasis upon commitments, accomplishments, and activities performed rather than upon items purchased and to provide for the establishment of priorities. It attempts to identify, quantify, and analyze the demands on and accomplishments of organizational units in terms of established goals, objectives, and purposes. Are we achieving our goals and living up to our promises? This requires the establishment of workload and demand indicators and evaluation criterion. It is performance that counts. 4. It attempts to identify all costs of each department, activity, and program, including capital expenditure, debt service, and employee benefit costs. What does an activity or department really cost? 5. It presents alternative service and funding levels for all activities in the operating budget. The purpose is to provide the City Council with the widest possible range of alternatives to maximize their opportunity for making policy decisions, assigning priorities and allocating scarce resources to accomplish their policy objectives. The City's budget approach involves the preparation of three budget documents. The Policv Budget, the Capital Improvement Program (CIP) Budget, and the Resident's Guide. The Policy Budget includes the City department detail, by defining goals and objectives for all City departments and activities, relates them to cost and resource requirements and attempts to establish measures for evaluating accomplishment. Specific improvement packages are developed and included in the Policy Budget for alternative funding and service levels. The Policv Budget document shows the budget by line item for each Department and provides a basis for fiscal control once the budget is adopted. The Policy Budget emphasizes objectives, accomplishments, and alternative funding and service levels and is intended to keep the attention of the City Council and public on the major policy decisions involving what services the City government will provide, who will pay for them, and the implications of such decisions. The Capital Improvement Program (CIP) Budget represents the City of Dubuque's five year physical development effort, attempts to address a variety of needs, which the City must meet if it is to maintain its physical facilities, meet its service commitments and provide for its future development. The CIP Budget reflects the City's comprehensive plan and the goals and priorities established by the City Council. The first year of the five-year CIP Budget goes into the budget for the next year and deserves the most attention. The CIP Budget is updated each year so that City Council has the opportunity to change the next four years and add a new year. The Resident's Guide pulls the entire budget together through visuals, narratives and summaries. It explains the budget, provides revenue, expenditure and personnel summaries and provides the City Council vision, goals and priorities on which the budget is based. 47 Page 1557 of 2358 Budget Process ROLES AND RESPONSIBILITIES Budget preparation and administration is a shared responsibility between the City Council, City Manager, Finance Department, department manager, division manager, and supervisor. Each plays an important role in the fiscal management system and the quality of and satisfaction derived from the fiscal management system is a direct result of the efforts of the several participants. Lack of attention, failure to follow procedures and/or poor follow through at any level can undermine the best fiscal management system. Let's look at the roles each plays. City Council In a very real sense, budget preparation and administration begins and ends with the City Council. The City Council has the following responsibilities: 1. Establish City goals and major performance objectives. 2. Approve guidelines for preparing the annual operating budget. 3. Establish through adoption of an annual budget what services and the level of services to be provided and how they will be financed. 4. Establish rules for the conduct of the City's fiscal operations. 5. Monitor progress toward achievement of objectives. 6. Require independent audit of fiscal records and transactions. The City Manager The City Manager is responsible to the City Council for the day-to-day operation and administration of the City government. In terms of fiscal management, the City Manager has the following responsibilities: 1. Develop policy guidelines for City Council review and adoption. 2. Develop Maximum Property Tax Levy Resolution for City Council review and adoption. 3. Prepare and submit an annual operating budget and a five-year Capital Improvement Budget premised upon Council guidelines and goals and major performance objectives. 4. Ensure the adopted budget is properly administered. 5. Supervise the performance of all contracts for work to be done by the City. Authorize and direct the purchase of all supplies and materials used by the City. 6. Keep Council fully advised on financial conditions of the City. 7. Establish rules for conduct of fiscal operations for which they are responsible. 48 Page 1558 of 2358 Budget Process Finance Department The Finance Department becomes an extension of the City Manager's Office for purposes of performing the delegated responsibilities. The responsibilities of the Finance Department include the following: 1. Administer the approved budget on a day-to-day basis to see that funds are being expended for the purposes approved and that all claims are supported by proper documentation. 2. Supervise sale of bond issues. 3. Administer centralized payroll system. 4. Administer decentralized purchase order system. 5. Assist the City Manager's Office in preparing the budget. Department Managers, Division Managers, and Supervisors The critical role in the fiscal management system is perFormed by department managers and their division managers and supervisors. The fiscal management system will be only as good as they make it. Their role includes: 1. Responsibility for the efficient and effective operation of the activities and tasks under their direction. Line supervisors are expected to control costs and achieve results. 2. Responsibility for preparation of budget requests, which emphasize objectives and service levels as well as traditional line item explanations and justifications for various funding levels and development of ineasures for evaluating progress toward objectives. What is the level of accomplishment, which can be expected from various funding levels, and how do we measure it? It is absolutely essential in our approach to budget preparation that accomplishments, objectives, and estimated costs be established by those in the organization who know the most about it and can be held accountable. Those are the department managers and their division managers and supervisors. 3. Responsibility for recommending and explaining needs and opportunities for service changes; reductions as well as expansions. 4. Responsibility for providing the planned and approved service level within budget limitations. 5. Responsibility for day-to-day department and activity budget administration. BUDGET CYCLE The budget cycle is a sequence of events covering the life of a budget from beginning to end; from the City Manager's review of prior year accomplishments and future initiatives, to the City Council approval of the final budget amendment. The budget cycle is approximately twelve months long. The critical dates are spelled out in State law: April 30th is when the budget for the following fiscal year must be adopted by the City Council; and July 1st as the beginning of the fiscal year. Throughout the entire budget cycle, public input is encouraged to insure the adopted budget is resident-based. The budget cycle can be summarized as follows: 49 Page 1559 of 2358 Budget Process SPRING City Council formulates negotiation strategy for collective bargaining. City Manager recommends budget carryover amendment for City Council approval at a public hearing. JULY - City Manager, along with Department Managers, review fiscal year AUGUST accomplishments and identify future initiatives for City Council consideration during goal setting. City Council holds 2-day goal setting to develop Vision and Mission SEPTEMBER - statements, identify 5 year goals and establish Policy agenda including OCTOBER Top Priorities for upcoming fiscal year and Management Agenda/ special projects. SEPTEMBER City departments prepare Capital Improvement project information OCTOBER and budget requests for review by City Manager. OCTOBER City departments prepare operating budget and other budget requests for review by City Manager. NOVEMBER DECEMBER City Manager holds Public Input meetings to review issues and priorities for the capital budget and the operating budget. JANUARY City Manager, Chief Financial Officer, and Budget Manager FEBRUARY analyze, review and balance capital and operating budget requests and prepare final budget recommendation. City Manager presents draft Policy guidelines and Maximum Property MARCH Tax Resolution to City Council for City Council approval. MARCH City Council holds public meetings to review recommended budget by APRIL department. Meetings are held in the evening and are available for live viewing on City Channel Dubuque. City Council holds final public hearing on the recommended budget. The meeting is held in the evening and is available for live viewing on APRIL City Channel Dubuque. City Council adopts budget and city staff certifies budget by April 30 in compliance with State law. Budget Manager reviews budgeted revenues and expenses and recommends adjustments to more accurately reflect the anticipated APRIL revenues and expenses for the fiscal year ending June 30. MAY City Council reviews and approves an amended fiscal year budget and city staff certifies the budget amendments by May 31 in compliance with State law. 50 Page 1560 of 2358 Budget Process BUDGET AMENDMENT PROCESS Budget estimates may be amended and increased as the need arises to permit appropriation and expenditure of unexpended cash balances on hand and unanticipated revenues. Such amendment may be considered and adopted at any time during the fiscal year covered by the budget (but prior to May 31) by filing the amendments and upon publishing them and giving notice of the public hearing in the manner required in the State Code. Within ten days of the decision or order of the City Council, the proposed amendment of the budget is subject to protest, hearing on the protest, appeal to the state appeal board, and review by that body. A local budget must be amended by May 31 of the current fiscal year-to allow time for a protest hearing to be held and a decision to be rendered before June 30. Except as specifically provided elsewhere in the lowa Administrative Code rules, all appropriation transfers between programs or funds are budget amendments and shall be prepared as provided in lowa Code section 384.16. The program reference means any one of the following nine major areas of public service that the City Finance Committee requires cities in lowa to use in defining its program structure: Public Safety, Public Works, Health & Social Services, Culture & Recreation, Community & Economic Development, General Government, Debt Service/Capital Improvement Projects, Business Type, and Non-Program. BUDGET ACCOUNTING BASIS The operating budget of the City of Dubuque is written so that available resources and anticipated expenditures are equal. The City's accounting and budget records for general governmental operations are maintained on a modified accrual basis, with the revenue being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities incurred. Accounting records for the Enterprise and Internal Service Funds are maintained on the accrual basis, while the budget records are maintained on the modified accrual basis. Differences between budgetary policies and Generally Accepted Accounting Principles (GAAP) in the Enterprise and Internal Service Funds exist for several reasons. One reason is that existing procedures have worked well and continue to work well for administrative and control purposes. Some other reasons for differences between budget and GAAP are the treatment of interfund transfers, departmental capital outlay, debt service principal payments, and depreciation. The City's budgeting practices include interfund transfers as revenue and expenditures, while GAAP classifies interfund transactions as other financing sources and uses. Also City management desires an operating statement budget line item for each anticipated cash outflow, including debt service and capital outlay. If the City budgeted the enterprise funds on a full accrual basis, capital outlay and debt service payments would not be reported in the operating statement. Depreciation expense, which is recognized in the accounting records, is not budgeted. Not providing for depreciation in the budget is a policy decision that has not adversely affected the funds. FUND ACCOUNTING BASIS The accounts of the City are organized on the basis of funds and groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, equities, revenues and expenditures or expenses. 51 Page 1561 of 2358 Budget Process The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Employee Benefits Fund is used to account for pension and related employee benefit costs for those employees paid wages from the General Fund. The Community Development Fund is used to account for the use of Community Development Block Grant funds as received from federal and state governmental agencies. The Street Construction Fund is used to account for the resources and costs related to street capital improvements. The General Construction Fund is used to account for the resources and costs related to nonassignable capital improvements. The City reports the following major proprietary funds: The Sewage Disposal Works Fund is used to account for the operations of the City's sewage disposal works and services. The Water Utility Fund is used to account for the operations of the City's water facilities and services. The Stormwater Utility Fund is used to account for the operations of the City's stormwater services. The Parking Facilities Fund is used to account for the operations of the City-owned parking ramps and other parking facilities. The America's River Project is used to account for the construction of all projects covered by the Vision lowa Grant, including all matching funds. The City reports the following non-major governmental funds: Airport Construction Fund - This fund is used to account for the resources and costs related to airport capital improvements. Sales Tax Construction Fund- This fund is used to account for the resources and costs related to capital improvements financed through the local option sales tax. Road Use Tax Fund - This fund is used to account for state revenues allocated to the City for maintenance and improvement of City streets. Section Vlll Housing Fund - This fund is used to account for the operations of federal Section VIII existing, voucher, and moderate rehabilitation projects. Tort Liability Fund- This fund is used to collect a special property tax levy which is then transferred to the General Fund. The General Fund accounts for the administration and payment of damage claims against the City. Special Assessments Fund - This fund is used to account for the financing of public improvements that are deemed to benefit primarily the properties against which special assessments are levied and to accumulate monies for the payment of principal and interest on the outstanding long-term debt service. Tax Increment Financing Fund - This fund is used to account for the receipt of property taxes, for the payment of projects within the tax increment financing district, and for the payment of remaining principal and interest costs on the tax increment financing districts' long-term debt service. 52 Page 1562 of 2358 Budget Process Cable TV Fund - This fund is used to account for the monies and related costs as set forth in the cable franchise agreement between the City of Dubuque and the cable franchisee. Library Expendable Gifts Trust - This fund is used to account for contributions given to the library to be spent for specific purposes. IFA Housing Trust - This fund is used to account for funds received under the lowa Finance Authority State Housing Trust Fund Program. Debt service fund — This fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. Ella Lyons Peony Trail Trust Fund- This fund is used for dividends and maintenance cost related to the City Peony Trail, per trust agreement. Library Gifts Trust Fund-This fund is used to account for testamentary gifts to the City. The City reports the following non-major proprietary funds: Refuse Collection Fund - This fund is used to account for the operations of the City's refuse collection services. Transit System Fund - This fund is used to account for the operations of the City's bus and other transit services. Governmental Fund Types (Budgetary� Governmental funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (other than those in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position. The following are the City's governmental fund types: • The General Fund is the principal operating fund of the City and accounts for all financial transactions not accounted for in other funds. The general operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are financed through revenues received by the General Fund. • Special Revenue Funds are used to account for revenues derived from specific taxes, governmental grants, or other revenue sources, which are restricted to finance particular functions or activities of the City. The City's special revenue funds include such funds as Road Use Tax, Community Development, UDAG Repayments, Section 8 Housing, Lead Paint Grant, State Rental Rehab, Cable TV, Special Assessment, Expendable Library Gifts Trust, Tort Liability, Employee Benefits, and TIF funds. • Debt Service Funds are used to account for the accumulation of resources for, and the payment of, principal, interest, and other related costs of the City's general obligation debt. The City uses this fund to pay some of the debt service paid from other funds with the revenue transferred in. 53 Page 1563 of 2358 Budget Process • Permanent Funds are used to account for resources that are legally restricted to the extent that only the earnings, and not principal, may be used for purposes that support the reporting of governmental programs. The City's permanent funds include: Lyons Peony Trust and Library Gifts Trusts. • Capital Improvement Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities. (Even if a capital project fund is used, not all capital acquisitions need be accounted for in the fund). For example, the routine purchases of capitalizable items (e.g., police vehicles, copy equipment) are typically budgeted and reported in the General Fund or other governmental fund. Proprietary Fund Types (Budgetary� The City also has proprietary fund types, which are different from governmental fund types in that their focus is on the determination of net income or loss. The revenue from these funds is assumed to be adequate to fund the operation of the funds. The City's proprietary funds are as follows: • Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through use charges or where the periodic determination of net income or loss is deemed appropriate. The City's enterprise funds include Water, Sewer, Stormwater, Refuse/Solid Waste, Transit, Parking and America's River Project. • The Internal Service Fund accounts for the financing of goods and/or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost reimbursement basis. The City's Internal Service Funds include Engineering Service, Garage Service, General Service and Stores/Printing. Self-Insurance Funds (Non-Budgetary) • The Self Insurance Funds are considered Internal Service Funds, are not budgeted, but are summarized in the audited financial statements. These include Health Insurance Reserve and Workers' Compensation Insurance Reserve. Fiduciary Fund Types (Non-Budgetary� The City also has fiduciary fund types, which account for assets in a trustee or custodial capacity: • Pension Trust Funds account for assets of pension plans held by a government in a trustee capacity. The City of Dubuque has no such funds. • Private Purpose Trust Funds account for trust arrangements, including those for escheat property, where principal and income benefit individuals, private organizations, or other governments. The major use of private purpose funds is for escheat property. The City has no such funds. • Agency Funds account for those assets held solely in a custodial capacity by the City as an agent for individuals, private organizations, other governmental units, and/or other funds. The City's Agency Funds include the Cable Equipment Fund (monies received from Mediacom through the Cable Franchise Agreement for distribution), and the Dubuque Metropolitan Area Solid Waste Agency General and DNR Planning. These funds are not budgeted. 54 Page 1564 of 2358 Budget Process FUND - DEPARTMENT RELATIONSHIP The various funds are grouped by type in the budget. The following fund types are used by the City: All Funds ' c;ovemmental Fund `' ` Proprietary Fund Types � Fiduciary Fund Types ' Types General Fund �' ' Enterpnse Funds ' `Pension Trust Funds � ; � � Special Revenue '' � Internal Service � Pnvate Purpose � Funds Funds Trust Funds � ; �. � Debt Service Fund �' Self-lnsurance Agency Funds 1 Funds �� ` . � � � �. Permanent Funds � J Capital Improvement' Funds � � 55 Page 1565 of 2358 Budget Process The following table shows each City department and its associated funds. Internal Perm- Special Revenue Construction Enterprise Service anent Debt ,� � x i c s � h = 'N" � � o � d V a `_m c m a�i m �` m a a=i � °— u in � � � � ji E o � � � E ` � o � 'L � � w j� N � Q i Uf � L f/ Ol dl V O) � i � 'a � d i O y N N J a L O � � N 3 O tA V � �+ H y � � LL ;a y O � N g m m � U p i c m y '� � � y c = � u u' ami y aci °° m o� � > � a � �' A � � � � V c U �, m d d � y a a C7 `m � � O (7 � O 0 = J � � � � a m c � U w y � V � �N r 3 � y O � � ` �' � � N c � w m � � O � � � a�i a m � C C. � m m c '� a i 'c o '� � w �-' c �o� i c Q Department U' K V V Vl N 2 2 V U F N 7 J > W W y V1 N U' U' Q H N fA d � � N J W U' U' N J J O Airport AmenCorps X Bud et X Buildin Services Cable TV X Ci Clerk Ci Council Ci Mana er X Civic Center Conference Center Economic Development X X Emer enc Communications Emer enc Mana ement En ineerin X X X X X Finance Fire GIS Health Services Housin X X X X X X X X X Human Ri hts Information Services X Le al Libra X Multicultural Famil Center i( Parkin X X Parks X X : ,; Personnel Plannin Services Police X X Public Works X X X X Recreation X Y X X Transit X W ater Water&Resource Recove 56 Page 1566 of 2358 Budget Process KEY TERMS FOR UNDERSTANDING DUBUQUE'S BUDGET Program Programs are presented as general statements, which define a major purpose of City government. Each program is divided into several departments and activities representing a separate and significant segment of the program of which it is an integral part. The state budget law requires that the budget be certified on a program basis. The City of Dubuque uses the following nine programs: 1. Public Safety: Police Department, Emergency Communication Center, Fire Department, Disaster Services, Health Services-Animal Control activity, Public Works-Flood Control activity, Building Services-Inspection activities. 2. Public Works: Airport Department, Public Works Department, Engineering Department. 3. Health and Social Services: Human Rights Department, Health Services Department, Purchase of Services. 4. Culture and Recreation: Parks Division, Recreation Division, Ice Center Division, Civic Center Division, Conference Center, Library Department, Economic Development-Arts and Cultural Affairs activity. 5. Community and Economic Development: Economic Development Department, Housing and Community Development Department, Planning Services, Purchase of Services, Community Impact-Neighborhood Development activity. 6. General Government: Building Services-City Hall/Annex Maintenance, City Council, City Manager, City Clerk, Finance Department, Cable TV Division, City Attorney Department, Information Technology Department. 7. Debt Service and Capital Projects in programs 1-6 for governmental funds. 8. Business Type (includes business type operating, capital and debt service): Water Department, Water Resources and Recovery Department, Parking Division, Transit Division, Public Works-Landfill activities and Garage internal service fund activities, Engineering-Sewer and Stormwater activities, Finance-Utility Meter Reads activity and Stores internal service fund activities. 9. Non-Program: City Manager-Health and Worker's Compensation Insurance Reserve fund activities and Public Works-Dubuque Metropolitan Area Solid Waste activities. * Prior to Fiscal Year 2004, the State of lowa, City Finance Committee changed the number of programs from 4 to 9 on the expenditure side. Oaerating Budget The Operating Budget represents the various recurring activities and services provided by the several departments in the City government. The Operating Budget provides those services normally associated with the City government (e.g., police, fire, street maintenance, recreation) and involves expenditures which benefit the current fiscal year. (That is, items purchased are used up during the current fiscal period.) Expenditures in the Operating Budget are for such categories as Employee Expense, Supplies and Services, and Debt Service. Funding of the Operating Budget includes property taxes, shared state and federal revenues, fees, fines, licenses, permits, user charges and cash balances. 57 Page 1567 of 2358 Budget Process Capital Budget The Capital Budget represents major "permanent" capital improvement projects requiring the nonrecurring expenditures of public funds for the acquisition of property or easement, construction, renovation or replacement of a physical asset of the City and any studies, engineering or surveys which are an integral part thereof. The Capital Budget is multi-year in scope, is updated annually and includes project-funding information. The first year of the Capital Budget (or Capital Improvement Program) is included with the Operating Budget for the same year to arrive at a total or gross budget amount. Capital budget financing comes primarily from bond proceeds, state and federal grants, Road Use Tax funds, Dubuque Racing Association profit distribution, and utility depreciation funds. Expenditure Category Expenditure category or classification is the basis for classifying and codifying costs. Categories of expense include: (a) Employee Expense; (b) Supplies and Services; (c) Capital Outlay (Machinery and Equipment); (d) Debt Service; and (e) Capital Improvements. Categories of expense consist of various expense accounts. For example, Employee Expense is divided into expense accounts such as full-time, part-time & seasonal employees, overtime pay, holiday pay, social security expense and health insurance. Supplies and Services include accounts such as postage, telephone expense, office supplies, dues and memberships, utility expense - electricity, motor vehicle expense - fuel, library books, and architectural services. Revenue Category Revenue category or classification is a basis for classifying and codifying revenue. There are eight major categories or revenue, each divided into specific revenue items. The eight major categories of revenue are as follows: 1. Taxes 2. Licenses and permits 3. Use of Money and Property 4. Intergovernmental Revenue 5. Charges for services 6. Special Assessments 7. Miscellaneous Revenue 8. Other Financing Sources An example of the specific revenue items would include the following items in the licenses and permits revenue category: business licenses, cigarette licenses, beer permits, building permits, plumbing permits, heating permits, etc. Alternative Budget Levels The Dubuque budget system utilizes a variation of the zero-based budget (ZBB) approach utilizing three alternative funding or budget levels: Maintenance Budget Level, Base Budget Level and Improvement Level. Each alternative funding level includes specific objectives to be accomplished (service levels to be offered) and associated costs. The budget decision becomes one of selecting alternatives, which maximize the achievements of City objectives according to established priorities within the context of limited resources and City Council policy. 58 Page 1568 of 2358 Budget Process This page intentionally left blank. 59 Page 1569 of 2358 BUDGET IN BRIEF 60 Page 1570 of 2358 Budget in Brief Total FTE's FY 2026 775.86 Health: FT Environmental Sanitarian -1.00 Health: FT Lead Environmental Sanitarian +1.00 Housing: FT Housing Inspector +1.00 Housing: FT Grants Supervisor +1.00 Housing: FT Administrative Support Professional +1.00 Human Resources: PT Human Resources Employment Specialist -0.75 Human Resources: FT Human Resources Employment Specialist +1.00 Information Technology: FT Data Analyst +1.00 Information Technology: GIS division +2.25 Information Technology: FT Administrative Support Professional +1.00 Multicultural Family Center: PT Administrative Support Professional +0.48 Parks: Environmental Justice Tree Coordinator +1.00 Parks: FT Maintenance Technician +2.00 Parking: PT Custodian +0.15 Parking: PT Parking Enforcement Officer -0.50 Parking: PT Parking Revenue Collector -0.23 Police: PT Records Clerk -0.54 Police: Temporary Criminal Analyst Intern +0.25 Public Works: FT Traffic Signal Technicians -3.00 Recreation: PTAdministrative Support Professional -0.48 Recreation: Temporary Recreation Leader/Coordinator -0.50 Transit: PT Bus Operator -0.75 Transit: PT Bus Attendant +0.50 WRRC: Limited Term Equipment Mechanic +0.08 WRRC: FY 2026 Recommended Improvement Package - Intern +0.40 Total Recommended FTE's FY 2027 795.44 69 Page 1579 of 2358 Budget in Brief SUMMARY OF PERSONNEL APPROPRIATIONS AND POSITIONS BY DEPARTMENT Fiscal Year Fiscal Year Fiscal Year FY 2025 FY 2026 FY 2027 DepartmenUService 2025 2026 Budget 2027 Budget FTE's FTE's FTE's Police $ 10,612,834 $ 10,926,068 $ 11,480,708 125.75 124.75 124.46 E911 1,323,915 1,377,035 1,416,122 20.35 20.41 20.41 Fire 9,181,752 9,006,086 10,819,576 104.16 104.16 118.16 Human Rights 281,877 207,684 193,931 3.00 2.00 2.00 Health Services 577,381 613,872 642,730 7.14 7.14 7.14 Multicultural Family Center 340,466 312,479 356,156 5.49 5.01 5.49 Parks Division 2,304,830 2,383,485 2,601,651 39.59 40.02 43.02 Community Impact& Neighborhood Support 362,774 401,836 696,509 5.00 5.00 7.58 Civic Center 23,974 25,335 25,575 0.15 0.15 0.15 Conference Center 23,974 25,335 25,575 0.15 0.15 0.15 Recreation 1,970,316 2,079,457 2,074,881 42.25 42.79 41.81 Library 2,371,717 2,436,197 2,585,860 35.52 35.52 35.52 Airport 1,226,274 1,351,887 1,310,501 19.70 19.20 18.29 Transportation Services 2,882,325 2,958,444 3,072,863 55.20 55.20 54.37 Engineering 3,340,025 3,562,044 3,950,262 41.71 41.98 45.23 Water 1,918,881 1,930,355 2,089,009 27.07 27.07 27.07 WRRC 1,347,665 1,420,815 1,515,967 17.25 17.25 17.73 Public Works 6,296,108 6,498,547 6,582,624 96.06 97.38 94.38 Economic Development 368,423 463,931 495,495 3.75 4.75 4.50 Housing &Community Dev. 2,881,210 2,972,739 3,153,808 36.00 36.00 39.00 Planning Services 674,308 736,346 772,445 8.38 8.38 8.38 Human Resources 689,887 737,586 819,487 8.25 7.75 8.00 Office of Economic Mobility 325,702 366,115 - 4.00 4.00 0.00 Communications Office 709,514 713,198 556,307 9.25 8.50 6.25 City Council 81,400 81,400 86,526 3.50 3.50 3.50 City Manager's Office 1,075,242 1,107,308 1,208,843 10.42 9.67 9.67 City Clerk 289,832 313,559 330,896 4.00 4.00 4.00 Finance Department 1,863,476 2,010,774 2,161,672 24.51 25.51 26.31 City Attorney 675,751 708,779 735,515 5.62 5.62 5.62 Information Technology 1,143,644 1,161,565 1,509,060 13.00 13.00 17.25 Total $ 57,165,477 $ 58,890,261 $ 63,270,554 776.22 775.86 795.43 HOW IS THE BUDGET FUNDED? Property Taxes General fund, transit, payroll benefit costs, and general liability insurance expenses are supported by property tax dollars. The property tax rate for fiscal year 2027 is $10.16480 per $1,000 of taxable valuation. It is estimated that a total of$31,940,934 will be received from property taxes in FY 2027. This is increase from fiscal year 2026. For FY 2027 there is a 3.00% or $26.67 property tax increase for the City portion of property taxes paid by the average homeowner. �� Page 1580 of 2358 Budget in Brief Other Taxes Other taxes that the City collects include local option sales tax, hotel/motel tax, and tax on agricultural land. In 2027, approximately $12,540,866 will be received in local option sales tax. This decreased (2.83)% under FY 2026. Of this amount, 50% is for property tax relief ($6,372,758), 20% is for City facilities maintenance ($2,549,103), and 30% is for special assessment relief ($3,823,655). In 2027 approximately $3,513,001 will be received in hotel/motel tax. By resolution, 50% of this amount is to be used for promotion and encouragement of tourism and convention business and the remaining 50% goes into the General Fund for property tax relief. Licenses and Permits Fees from licenses include business, beer, liquor, cigarette, dog, cat, bicycle, housing, and other miscellaneous. Fees from permits include building, electrical, mechanical, plumbing, refuse hauling, excavation, subdivision inspection, swimming pool inspection, animal impoundments, and other miscellaneous. The City estimates $4,706,776 in licenses and permits in FY 2027. Also included are cable TV franchise fees (5%) and utility franchise fees (5% gas & 5% electric). The FY 2027 projection for cable franchise fees is $256,734 and utility franchise fee projection is $7,102,341. The utility franchise fees are all used for property tax relief. Use of Money and Propertx This category includes interest and investment earnings collected, rent received from City owned property, and lease revenue, which is estimated at $21,265,760 in FY 2027. The gaming related leases generate the most revenue. The lease with the Dubuque Racing Association (DRA) includes collection of 1.5% of coin-in (1°/o prior to 1/1/22), 4.8% of gross revenue from table games, 0.5% of sports wagering, and a distribution of profit from the DRA of 50°/o. Diamond Jo also pays a parking lease. City Council's policy is to use 100% of the DRA distribution of profit to support the Capital Improvement Budget and the total received from DRA operating and taxes is split 100% for property tax relief and —% for capital projects. Gaming leases are projected to be $7,079,186 in FY 2027. Riverfront leases are expected to generate $4,374,313 in FY 2027. Intergovernmental Revenue Intergovernmental revenues are projected to decrease (5.14)% from FY 2026. The city is estimated to receive $53,729,895 in Federal and State grants, State Road Use Tax Funds, and County Contributions. Prior years included large increases due to American Rescue Plan Act Funds. Charges for Services This includes revenue from charges for services for Water, Sewer, Stormwater, Solid Waste, Transit, Parking and Landfill. Rate increases have been incorporated into all utilities (as shown on the "Fact Sheet" under the Budget Overviews tab). Rate increases were necessary due to a combination of operating costs rising, additional capital projects to support additional debt service and to meet revenue bond covenants. Utility charges are projected to be $48,776,628. Other charges for services include copy charges, sales of maps and publications, street, sidewalk, and curb repairs, special Police services, Library services, Recreation programs, etc. Other charges for services are estimated at $12,958,497 in FY 2027. Special Assessments Special assessments are an additional tax levied on private property for public improvements that enhance the value of the property. In FY 2027, special assessment revenue is estimated at$40,000. Miscellaneous Revenue This category includes internal charges for services, proceeds from bonds, and revenues of a non- recurring nature. Miscellaneous revenues are estimated at$40,584,173 in FY 2027. �� Page 1581 of 2358 Budget in Brief RECOMMENDED CAPITAL IMPROVEMENT PLAN The City of Dubuque's Capital Improvement Plan (CIP) represents the City's five-year plan for capital improvements and totals $352,840,562. Appropriations of funding are made on an annual basis. The capital budget is therefore the first year of the five-year CIP. The approved capital budget for fiscal year 2027 totals $80,633,738. The recommended CIP reflects the City's comprehensive plan and the goals and priorities established by the City Council. Funding required to meet the capital needs for FY 2027 totals $80.6 million. Approximately 32.96°/o ($26.6 million) of this will be provided by issuance of new debt, primarily for sewer utility related projects ($12.2 million) and Greater powntown TIF related projects ($6.1 million). Another funding source representing approximately 26.87% of total sources is operating receipts. Operating receipts come from current year revenues and essentially represent the amount of "cash" or pay as you go financing provided by each enterprise operation. A major focus of the capital budget and capital improvement plan is the maintenance and refurbishment of existing city facilities. To this end, significant resources are dedicated for these types of projects including, Bee Branch Creek Watershed, Airport, Fire facilities, Civic Center, Grand River Center and Street, Sanitary and Water Improvements. The following page provides a listing of some of the highlighted projects in the fiscal year 2027 capital budget. The Capital Budget in the Resident's Guide includes a summary by department of all projects planned through FY 2031. 72 Page 1582 of 2358 Budget in Brief FY27 RECOMMENDED CAPITAL BUDGET HIGHLIGHTS Total City Investment Department Project Title FY2027-FY2031 Fire Outdoor Warning Siren Repair/Replace $54,000 Fire Fire Station Expansion $8,791,700 Fire 2027 Ambulance Replacement(1914) $500,000 Fire Portable Radio Replacements $490,000 Fire 2030 Fire Engine Replacement(1910) $1,288,408 Fire 2030 Ambulance Replacement(1915) $635,000 Fire 2031 Ambulance Replacement(130010) $665,000 Parks Jeffris Grant $2,060,394 Civic Center Five Flags Building Improvements $5,844,678 Conference Center Roof Restoration $1,383,000 Water 17th/Locust Street Reconstruction Phase 4 $1,110,000 Water Admiral Sheehy Drive Water Main Loop $686,400 Water Central Ave Booster Station $1,020,000 Water Water Main Extension Central Ave $965,000 Highway20/Dodge St Water Main Relocation - Water Devon Drive to Concord St $1,000,000 Water Private Lead Line Replacement Program $1,050,000 Private Lead Service Line Replacement Water Program $4,050,000 Source Water PFAS Reduction Project- GranularActivated Carbon Filter Water Rehabilitation $10,900,000 Water Source Water PFAS Reduction Project $1,121,199 Water Water Meter Replacement Program $687,750 Water Water Storage Maintenance Program $3,336,000 Water West End Annexation Phase II $2,000,000 Water Southwest Arterial 16" Water Main Extension $2,475,000 W&RRC Bar Screen Replacement $2,500,000 WRRC Plant Nutrient Reduction Improvements and BOD/Flow Capacity W&RRC Improvements $1,535,000 W&RRC Industrial Controls Upgrade $6,114,700 Treatment System Infrastructure Restoration W&RRC & Reliability Improvements $2,047,550 Airport Reconstruct Taxiway A $9,969,994 Asphalt Pavement Repair/T-Hangar Apron Airport Rehabilitation $950,000 Airport Taxiway D Extension $2,940,000 Airport Taxiway J Improvements $7,145,600 Public Works Asphalt Milling Program $873,547 Public Works Curb Ramp Program $4,883,000 Publics Works Concrete Street Section Repair Program $1,641,038 Public Works NW Arterial Should Paving Project $2,311,247 Engineering Storm Sewer General Replacements $1,500,000 Engineering Stormwater Management Program $800,000 73 Page 1583 of 2358 Budget in Brief Total City Investment Department Project Title FY2027-FY2031 Engineering Detention Basin Maintenance & Repair $1,000,000 Bee Branch Creek Gate & Pump Engineering Replacement $5,121,112 Engineering 17th/Locust Street Reconstruction Phase 4 $5,300,000 Old Mill Road Lift Station & Force Main - Engineering Phase 1 $1,009,221 Old Mill Road Lift Station & Force Main - Engineering Phase 2 $6,978,630 Old Mill Road Lift Station & Force Main - Engineering Phase 3 $19,891,034 Old Mill Road Lift Station & Force Main - Engineering Phase 4 $19,506,258 Engineering Schmitt Island Sanitary Improvements $4,000,000 South West Arterial Interchange Sewer Engineering Extension $4,829,838 Sanitary Basis Analysis-South Port& Engineering Terminal St LS $10,800,000 Engineering Track Line Sanitary Sewer Reconstruction $3,500,000 Engineering 14th St Overpass $36,144,000 Central Avenue Corridor Streetscape Master Plan Implementation Improvements 11th - Engineering 22nd Street $9,770,000 US 20 - Northwest Arterial Intersection Engineering Operational and Capacity Improvements $6,000,000 Engineering East-West Corridor Capacity Improvements $18,600,000 Engineering 17th/Locust Street Reconstruction Phase 4 $4,765,000 Engineering Bridge Repairs/Maintenance $2,640,000 Engineering Fiber Infrastructure Management System $330,000 Traffic Signal Network Communications Engineering Program $445,000 Engineering STREETS Traffic Control Project Phase 2 $1,029,000 Engineering Federal Building Renovation $5,395,000 Economic Development Downtown Rehab Grant Program $1,700,000 Economic Development Workforce Development $1,857,500 Transportation Smart Parking System $780,000 Transportation Parking Ramp Major Maintenance Repairs $5,997,200 Housing Assistance for Homeownership $1,026,082 Housing Homeowner Rehabilitation Program $2,476,588 Housing Healthy Homes Production Grant $1,326,250 Housing Lead and Healthy Homes Grant $3,136,600 Community Green House Gas Inventory and City Manager's Office Climate Action Planning $50,000 City-Wide Computer and Printer Information Technology Replacements- General Gov $3,132,759 Information Technology Network Switch Replacement $607,500 City-Wide Computer and Printer Information Technology Replacements- Business $361,906 74 Page 1584 of 2358 Budget in Brief This page intentionally left blank. 75 Page 1585 of 2358 COMMUNITY INFORMATION 76 Page 1586 of 2358 This page intentionally left blank. �� Page 1587 of 2358 Community Information Dubuque THE CITY OF � All•Ameriea Cily U B E M,x��,,K�,.v�, , � ��► � � Masterpiece on the Mississippi Z°°''2°12 2013•2017 Dubuque is lowa's oldest city and is among the oldest settlements west of the Mississippi River. The first permanent settler to the area was French-Canadian fur trader Julien Dubuque. When he arrived in 1785, the Mesquakie (Fox) Indians occupied the region which included an abundant amount of lead mines. On June 1, 1833, the land was opened for settlement by the United States government under the Black Hawk Purchase Treaty and came to be known as the city of Dubuque. Dubuque has long been a historical and cultural center with its numerous historic sites, architectural Historic Districts with well-preserved buildings and homes, a revitalized main street, history and art museums, live theaters, ballet troupes, a symphony, three private colleges, two seminaries, a Bible college, libraries and a local history research center, recreational and sports venues, beautiful parks, a state park and nature interpretive center, miles of hiking and biking trails and the great Mississippi River. Recent recognitions include being named an lowa Thriving Community for using innovative solutions to enhance housing offerings to residents of all income levels, one of the 100 Best Communities for Young People, the Most Livable Small City in the US, an lowa Great Place, an All-America City five times between 2007 and 2019, and a LEED- Certified City (Leadership in Energy and Environmental Design). Dubuque scored 100 out of 100 on the 2021 Municipal Equality Index, issued by the Human Rights Campaign (HRC), based on the inclusiveness of its laws, policies, and services for lesbian, gay, bisexual, transgender, and queer (LGBTQ) residents. Dubuque was named the 2024 lowa Community of Character by the Robert D. and Billie Ray Center at Drake University as part of its annual lowa Character Awards, which annually recognize lowa individuals, organizations, and communities which demonstrate the six pillars of CHARACTER COUNTSO: trustworthiness, respect, responsibility, fairness, caring, and good citizenship.Dubuque is truly a "Masterpiece on the Mississippi." � �p �� f,'- � r� ��s < �'x" ,� ��,�'�" ' ,� �� . � � �� _�_„� .,,. " .r — �,� ,.: � ,, ` � �� .� — _. ..A ��—,��._ p ��t��'o T�a T� ., �—.—s = �;,_ , �'.�--� d-'a, i �- - T , , �. � � ��i�"` �� "� � �_ �� ..k.. . .. � --- y ��:�. „ ry j��! ■ ■��.�� - .. . �,� . . _._. _ c ,•.,- �'-�� ,� ��'m� �,��r�g�S.kf►.,w�i. P�'. �'��,'e.��1��s�� , �.::da£ ar � y +�++ � _ .��1 t -..�..�_ � �-�;��..�s�,-�,� ' �� -,-�`�'d` �"'. - �-= . _ .-�.�_ ._. ,...,. � � � _t. .��.-�-� , --- . ..- _ � �.�,� _ . �,..�-- � �� . , _ ; , �.S ti . �� /. .. ;� � '� ""i . ? . __ __ � . - _ .> n+9�d" �$ Page 1588 of 2358 Community Information ACCORDING TO THE 2024 AMERICAN COMMUNITY SURVEY (ACS), THE CITY OF DUBUQUE'S DEMOGRAPHICS INCLUDE THE FOLLOWING: AGE RACE Under 5 Years 5.8% White or Caucasian 85.9% � 5-19 Years 17.5% � Black or African American 4.2% 20-44 Years 34% American Indian and Alaska Native 0% � 45-64 Years 22.3% � Asian 1.6°/o 65 years and better 20.4% Hawaiian & Other Pacific Islander 1.3% � Some Other Race 1.0% � Two or More Races 5.9% POPULATION Total Population: 59,174 HOUSING Female Population: 50.5% Total Housing Units: 27,832 Male Population: 49.5°/o Housing Occupancy: 93.9% Owner-Occupied: 65.8°/a Average Household Size: 2.12 Renter-Occupied: 34.2% Family Households: 49.6°/o Non-Family Households: 50.4% INCOME Average Family Size: 2.80 Median Household Income: $65,845 Median Age: 38.1 years Median Family Income: $89,443 Families below poverty: 7.8% Individuals below poverty: 12.7% DUBUQUE'S LOCATION Situated at the intersection of lowa, Illinois, and Wisconsin, the community of Dubuque, lowa, stands among the Mississippi River bluffs as a metropolitan service area for ,,,,,,�„y,,, seven surrounding counties. Dubuque is connected by four-lane highways to Davenport, Des Moines, Madison and Minneapolis. The majority of the "'""' way to Chicago is also four-lane highway. Dubuque is . °"°"°'"-�. centrally located amongst several major metropolitan areas. °�° ��.. The Dubuque Regional Airport serves both business and � �' leisure travelers. Private and corporate jets also make use of the great central location of the airport as well. Land Area: 32.0 square miles RiverFront shoreline: 8.8 miles 79 Page 1589 of 2358 Community Information Current Land Use Current 2oning A review of existing lanG use within the Dubuque city limits Existing land use a�d current zoning are simila�,but not the same. (as of 2017) shows a balance of development among com- Within the city limits of Oubuque,land is 1009�6 zoned--induding mercial.indusuial,anG institutional uses.(See Figure 9-2) vacant land.Most land is zoned for iu current use,but not always. O Residential uses,separated as single-family and mutti-fam- O Using the same broad wtegories examined for existing ily categories when combined are 5,355 acres,or 3196 of land use,the most prevalent zoning is 8,105 acres(48%)of Dubuque's total land area. single-family residential(which indudes the small amount of two-family residential). ❑ Large swaths of agriculwnl land,particulxly in the westem portion of Dubuque,total 3,529 acres. Many of these agricul- O The rest of the current zoning in Oubuque is diviGed about tural properties were annexed iMo the city with the inteM of equally among agricultural with 3,067 acres (18%), com- being GevNoped for another use in the firture. mercial at 2,629 acres (1596), and inAustrial with 2,253 acres (1396). Multi-family zoning encompasses only 636 O An Ezisting Land Use Map an be found in F�gure 91 acres(496)anG institutional only 314 acres(296). O A breakdown of cunent zoning is shown in Figure 9.3. A current zoning map can be found in the Appendix. ■ FIGURE 9.1 ■ FIGURE 9.3 ❑ Cunent Land Use in Acres ❑ Current Zoning in Acres Inztr U�cn Space 10"� In�.t• . �nily 7?�. V�CAnt ' ��1� �� Industnal 13"�. � inqle Famdy 48"� Aqncultural2l � , . CortxT1lfClil 15"�. kidustr�al 9'. Conunencal9'L ��F . , ■ �c=Doen spxr(i.�n k�K) ■vx i�ou�ri�l(l,�;a kres) ■lex Aqria�nrx(3.06��cres) ■ :��e commero�l(2,619�aes) ■ 17�Smqle F�nip(4,661 Acres) �21X Aqriadou�l(3.519 Aaa) �4!%9nqle F�(d.lOSAorcs) � 13%Indu�ri�l(2�5 3 Acres) �1%I�Milti F�mih(69�Mes) �t!i Mstioioon�l(1,1A6 Aaes) �IX Multi Fm�r(636 Acres) �IX Y�tlditiorol(314 Acra) �9xc�wc�.so�k�� i2xv�r�x�z.iio�� Total Aves:17,003 Total Anes:17,005 (1�lott:Tot�l Atfes ta[ludes roids md rnrr.) (I�lote:Tovl kres euludes rwds�d rnec) $� Page 1590 of 2358 Community Information SERVICES PROVIDED BY THE CITY OF DUBUQUE Airport Library Ambulance & EMS Licenses & Permits Animal Control Marina Arts & Culture Parking Building Permits Parks Campground Planning & Zoning Civic Center Police Conference Center Recreation Community Development Sanitary Sewer Economic Development Sidewalks Emergency Communications/911 Snow & Ice Control Emergency Notifications Street Maintenance Fire/Rescue Stormwater Management Golf Course Transit Health Services Trash & Recycling Historic Preservation Utility Billing Housing Water Human Rights Wastewater RECREATION OPPORTUNITIES 55 parks with 1,247 acres M �� ,},�,;,�; _�� 31 park shelters .-��"-�` �' � � �`��: ��.�� `� 15 tennis courts ��'' '�� r� � �.' 9 pickle ball courts ____ � :� �,V±� �gy �� 6 combination volleyball/pickle ball courts �.�, � �;. z � ,� �� " � 22 restroom buildings � '� ' �,,,�� - "� 4 accessible fishin iers � �L� �� `- y� rrt � g p �..� �� y � ��',�� - .,� ��"` �, � 3 skate parks �"� � �,,� � � �� " � �, , �. � 1 pet park `�,,� �� '` � ��. �'�� ,,��. 288 units of play equipment ` � � }� ��:� �� _�� b �� 1�� 1 disc golf course ",�?"' � ,;n� � 1 in-line hockey rink �`--� �°� ��'"� n ��.. 10 softball fields �fi��-�� f �r M� 1 all-inclusive baseball field i', �� , -� :. �- �° .- � 1 baseball field '� � x� �.� � - } � Y :� ,' $ 4,500 street trees ��#� � "�� `� �. � ��'� 45 miles of on/off street trails - �""F� '�� 1,000 picnic tables �� - �� r� , . Y ..� �� .< � 7 basketball courts �� .�� 8 half basketball courts � '�ki� ��yY.� 2 amphitheaters ��- . ��.�. �� r�.� 17 horseshoe pits ��Y��^�`' � .r�:.��- � �,�x �. � �.. � 1 splash pad - �, :�... ��'�._: CULTURAL AMENITIES In Dubuque there are over 45 non-profit arts and cultural organizations that provide year-round cultural programming in Dubuque and the surrounding area. Dubuque is home to a world-class Symphony Orchestra and Arboretum, two Smithsonian Affiliates - the Dubuque Museum of Art and the National Mississippi River Museum and Aquarium, the Julien Dubuque International Film Festival (JDIFF), multiple community theater groups including Grand Opera House, Bell Tower, Rising Star and Fly By Night. There are on average over 125 special events throughout the year from community festivals to outdoor music venues to parades and neighborhood events. $� Page 1591 of 2358