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Fiscal Year 2027 Dollars and Cents BrochureCopyrighted July 6, 2026 City of Dubuque ACTION ITEMS # 3. City Council ITEM TITLE: Fiscal Year 2027 Dollars and Cents Brochure SUMMARY: City Manager providing a copy of the Fiscal Year 2027 Dollars and Cents Brochure. This publication is being mailed to all City utility customers from July 9 - 30. It is also available online at www.cityofdubugue.org/dollarsandcents SUGGUESTED Receive and File DISPOSITION: ATTACHMENTS: 1. Dollars and Cents FY27 Page 846 of 853 14 �, DUB E •: FY27 CITY BUDGET: $265,228,620 �1 15k4 ob 9 164 The Dubuque City Council unanimously approved the City's budget for fiscal year (FY) 2027, which runs from July 1, 2026, through June 30, 2027. The FY27 City budget is 3.4% lower than FY26. FY27 CITY PROPERTY TAX RATE City Property Tax Rate Comparison yNO INCREASE to the tax rate from FY26 Waterloo = 116% higher than Dubuque y$10.06372 per thousand dollars assessed value Average = 53% higher than Dubuque $2176 Dubuque will contirLue to have the lowest property tax rate among IRVa's 11 cities with populations over 50,000.'`" Property taxes are expected to generate $31.6 million for the City's FY 2027 general fund. To calculate your FY27 tax bill, visit: cit ofdubu ue.or r)uU t nn0%nrnIR /'*-I I A AIt—r r% $20 $16.58 $16.66 $17.48 $17.56 $15.35 $15.43 $15.51 $15 $11.74 $10.06 $10.27 $10.54 $10 $5 $0 QJ2 Q'S °rA . c�5 AJ° G`A .,,Ai\Oo oJ,OJ pF Pc� moo` oJ,pJ \gyp + �ec� dQ c �p� moo` �,�° Residential: Avg. value = $213,211 - $889.20 $906.76 +$17.56 law — +1.97% Commercial: $150,000 value and below 381 $716.00 $672.27 -$43.74 -6.11% Commercial: $150,001 - $300,000 value 225 $2,074.61 $2,030.88 -$43.74 -2.11% ommercial: $301,000 - $450,000 value 167 $3,433.21 $3,389.47 -$43.74 -1.27% :Industrial: ommercial: Avg. value = $624,927 636 $4,253.75 $4,973.85 +$720.10 +16.9% $150,000 value and below 8 $716.01 $672.27 -$43.74 -6.11%ndustrial: $150,001 - $300,000 value 3 $2,074.61 $2,030.88 -$43.73 -2.11% Industrial: $300,001 - $450,000 value 3 $3,433.21 $3,389.47 -$43.74 -1.27% Industrial: Avg. value = $731,693 58 $5,090.27 $5,940.87 +$850.60 +16.71% CM0041-062226 : �' r7 `� Page 847 of 853 WHERE PROPERTY TAXES GO GENERAL FUND The general fund is the operating fund for general City departments and their programs/services, such as public safety, culture and recreation, health and social services, and general government. The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses that may occur. The goal is to maintain at least 25%. In FY27, the City will have 27% in its general fund reserve. How General Fund Money Is Spent The average assessed Dubuque residential property value for FY27 is $213,211. Here's an estimated breakdown* of property tax bill changes for the average residential property and where those taxes go. *Calculation Note: Estimates use a Residential Rollback of 44.53% for FY27 and 47.43% for FY26. A standard $4,850 Homestead Credit reduction is applied to the taxable value. These results are estimates; final bills are issued by the Dubuque County Treasurer. In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds from Aa3 to Aa2, the third highest rating possible, and maintained that rating in January 2025 when a series of bonds were issued. This strong rating assists the City in securing the best terms for financial products like loans, which will provide substantial savings for the City and taxpayers. FY27 Consolidated Rate of $30.223293* *Not yet certified of time of printing: 6115126. Other' 3% NICC 3.5% Dubuque County 19% Dubuque's consolidated tax rate is the total combination of tax rates from multiple taxing authorities. This chart shows how that total rate is split. CITY BUDGET Public Safety 43.8% ■ Operating Budget ■ Capital Budget — 27% _ $25,412,743 Culture & Recreation 18.7% The budget includes the operating • — 25% Goal budget and the capital budget. The operating budget includes General Government 16.7% Public Works 8.2% FY27 Exceeds personnel costs and annual facility operating costs. It is funded primarily Projected through local property and sales taxes. Reserve by 2% Community & Economic Development 5.3% The capital budget funds major improvements to City facilities and • infrastructure. The capital budget is Health & Social Services 1.2% Capital Projects 0.8% supported through multiple funding sources, including federal and state grants. Debt Service 0.2% Transfers Out 5.1% Pa e 848 of 853 • FY27 CITY UTILITY RATES The City operates water, sanitary sewer, curbside collection, and stormwater utilities. The rates listed below reflect average household utility costs. Keep in mind that smaller households generally use less and therefore pay less for utilities. All four City utilities are self-supporting enterprise funds which means they are funded through user fees and grants. Avg. Household Rate: $23.17 / month* O Water (3% increase from FY26) Sanitary Avg. Household Rate: $34.73 / month** Sewer (9% increase from FY26) Basic Rate: $19.56 / month Curbside (g7. increase from FY26) o COII@CtlOn Curbside collection of recycling is no extra charge. 0 U O O Stormwater Avg. Household Rate: $12.02 / month*** (9% increase from FY26) WATER 2nd Lowest 32% lower than the highest rate and 16% lower than the average *Based on 3,200 gallons per month at $0.00724 per gallon. **Based on 3,200 gallons per month at $0.1085 per gallon. ***Based on usage of one single family unit which applies to most Dubuque households. Fees based on impervious ground coverage on a property. Fees are only used for the construction, maintenance, and operation of the public stormwater management system. HOW DUBUQUE RANKS AMONG IOWA'S LARGEST CITIES SANITARY SEWER 7th Lowest 18% lower than the highest rate and 10% higher than the average. CURBSIDE COLLECTION 5th Lowest 45% lower than the highest rate and 2% lower than the average. STORMWATER 2nd Highest 70% lower than the highest rate and 35% higher than the average. '0 WHO QUALIFIES: The program is available to income -qualified 1100000000III residential customers who can receive up to a 5o% reduction on their base utility rates. WHAT IS INCLUDED: The discount applies to the monthly base rates for I�LI` JLL Jl all four City utilities: water, sanitary sewer, curbside collection, and Ostormwater. �■ WHAT DO I DO? Submit an application for consideration online at www.cityofdubuque.org/ubdiscount, scan the program QR code, or call 563-589-4144 to get started. Applications must be renewed on an �. annual basis to maintain the discount. Page 849 of 853 A FOCUS ON REINVESTMENT, NOT JUST REPLACEMENT Over the past several years, the City has strategically invested over $244 million in long-term infrastructure (mostly water, sewer, and stormwater systems), while also supporting streets, safety, and community amenities to strengthen the quality of life today and into the future. The City of Dubuque's use of debt can be compared to many average homeowners who borrow to buy their home. The City has borrowed money at low interest rates to invest in infrastructure. Unlike the federal government, the City does not borrow money to cover operating expenses. Project Description and Amount Outstanding Stormwater Improvements $51,855,467 2. Water & Resource Recovery Center $41,953,000 3. Sanitary Sewer Improvements $40,654,454 4. TIF Improvements/Expansions $39,855,825 5. Water Improvements $21,422,895 6. Parking Improvements $16,866,662 7. Public Safety Improvements $9,992,796 8. TIF Rebates $6,760,523 9. Park & Recreation Improvements $5,741,047 10. Airport Improvements $2,162,488 Total $237,265,158 100% go, 87% FY27 Statutory Debt Limit Used 80% 70% 60% 50% 40% 30% 20% 10% 0% I'll FJ\^ F111 F111 JO "I" ef 1� � FJP eJp eJ0 Z61 FJti 1 41, F & FJ' Ft6" FJ113 J1b h Ze F31 A city's statutory debt limit is a legal safeguard that caps how much debt a city can have at one time. The limit is based on the community's property values and helps ensure the city maintains long-term financial stability while still being able to invest in important infrastructure and community improvements. 70% 60% 59% 50% 40% 30% 20% 10% 0% Comparison of Statutory Debt Limit Utilized (FY25) 56% 56% 52% J e 4 Qe �o\ O`�OQ otiz �ePl Ge0 40% 36% 36% 33% 1111 18% 17% 15% 1111 L �y, L�ry L,ry LJry^, Lp,, �J��, L'Zo �-0 aJQJ� R0" o Goa JA�z ��c� wee Goa \��\e 5 ,o ��� P Go Dubuque ranks as the fifth lowest and is below the average of other cities. The average is 9% higher than Dubuque and the highest is 88% higher than Dubuque. The City of Dubuque has received the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial Reporting (COA) Award for 37 consecutive years and the Distinguished Budget Presentation Award for 20 consecutive years. Page 850 of 853