Fiscal Year 2016 Recommended Budget Transmittal Copyright 2014
City of Dubuque Action Items # 5.
ITEM TITLE: Fiscal Year 2016 Recommended Budget Transmittal
SUMMARY: City Manager submitting the Fiscal Year 2016 Recommended Budget
Transmittal Message.
The City Manager will make a presentation.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Presentation
ATTACHMENTS:
Description Type
❑ FY 2016 Recommended Budget Transmittal Message-MVM City Manager Memo
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2016 Budget Recommendation Transmittal Memo
DATE: January 29, 2015
The purpose of this memorandum is to transmit the recommended fiscal year (FY) 2016
operating and capital improvement budgets, summarize the issues that are impacting
this budget, and outline steps being taken and planned to address the challenges facing
the City. In the fall of 2014, the City distributed an issue of the City Focus magazine
entitled, "Outcomes." This memo will also review what kind of return the citizens are
getting for their investments.
In December 2014 there were 61,700 people working in Dubuque County with a 3.9%
unemployment rate. This is 1,800 net new jobs over December 2013, over 3% growth,
one of the highest growths of all state metropolitan areas. When you compare this to
the lows of the 1980s, over 24% unemployment, 38,600 people working in Dubuque
County, you can tell how much work has gone into achieving these results. With just
3% of Iowa's population, Dubuque County accounted for nearly 11% of the state's net
job growth from December 2013 to December 2014. From 2009-2013, Dubuque
County achieved 8.1% of the state's job growth.
Average Hourly Wage in Dubuque County:
The average hourly wage in Dubuque County rose from $18.00 in 2007 to $23.38 in
2013, an increase of 30% that exceeded inflation by 17.5%.
The national average hourly wage rose from $20.95 in 2007 to $23.96 in 2013, an
increase of only 14.4% that exceeded inflation by just 2%. In 2007, the average hourly
wage in Dubuque County ($18) was 14.1% below the national average hourly wage
($20.95). In 2013, the average hourly wage in Dubuque County ($23.38) was only 2.4%
below the national average hourly wage ($23.96).
The Iowa Economic Development Authority said the average hourly wage in Dubuque
County grew by 103% from 1991 to 2014, exceeding inflation by 29%.
Employment: Dubuque County's total employment for 1983 was 37,700; it grew to
58,600 in 2013, and hit 59,900 in 2014, a 59% (22,200) increase in just over 31 years.
Regional Employment Comparison: From November 2012-2013, the number of jobs
in Dubuque increased by 1 .35%. During that same time period, Decatur, Illinois, saw a
4.3% decrease; Manhattan, Kansas, a 3.5% decrease, and Peoria, Illinois, a 2.2%
decrease.
Unemployment: Dubuque County's unemployment rate for 2013 was 4.5% while the
nation's was 7.4%. Dubuque County's unemployment rate for November 2014 was just
3.5% while Iowa's rate was 4.3% and the nation's was 5.8%.
Per Capita Income: Between 2000 and 2013, Dubuque's per capita income rose by
33.9%, exceeding the national growth by 3.5%.
Median Household Income: In 2000, Dubuque's Median Household Income (MHI)
($39,582) was 6% below the national MHI ($41 ,994). In 2012, Dubuque's MHI ($50,885)
was just 1% below the national MHI ($51 ,017.)
Home Price Appreciation: Between 2008 and 2013, the average home price in
Dubuque grew by 9.71%, more than Sioux City (8.83%), Waterloo (6.28%), Iowa City
(5.32%), the Quad Cities (3.93%), Cedar Rapids (1 .33%), Council Bluffs (1 .02%), Des
MoinesM/est Des Moines (-0.50%), Chicago (-18.56%), Daytona Beach (-24.08%), and
the national average (-0.15%).
The City is partnering with key organizations, most notably the Greater Dubuque
Development Corporation, to do the things that need to get done to partner with private
business to spur job growth. The City is also partnering with key organizations to create
the kind of community with the quality of life that will retain and attract a quality
workforce so local companies can continue to thrive and expand and new companies
will want to call Dubuque home.
The City has done this while trying to be fiscally responsible. In FY2015, the current
fiscal year, Dubuque had the lowest property taxes per capita ($431) in the state for the
city portion of the property tax rate in comparison to the 10 cities in Iowa with a
population over 50,000. The highest City for property taxes per capita is West Des
Moines ($904) which is 110% higher than Dubuque and the average of the other 9 cities
is $642 which is 49% higher than Dubuque.
In FY2015, Dubuque had the second-lowest property tax rate of the 10 cities in Iowa
with populations over 50,000. Comparing property tax rates shows the city with the
highest rate is Waterloo at $17.95. It is 63% higher than Dubuque's property tax rate
and the average of the other nine cities if$15.78, 43% higher than Dubuque.
I am recommending the City portion of the residential property tax rate to remain at
$11 .0259 per thousand, the same as FY2014 and FY2015. This will cause a 2.63%
increase for the average residential property, a 7.49% decrease for the average
commercial property, and a 6.68% decrease for the average industrial property. (Part of
the revenue loss from commercial and industrial will be reimbursed by the State.) If this
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recommendation is approved, the City of Dubuque property tax rate will have remained
the same since FY2014, three consecutive years. Dubuque's property tax rate in
FY1987 was $14.58, 24.4% higher than the FY2016 recommended rate of$11 .03.
Over that time period, the average homeowner has had an average annual increase in
the city portion of their property tax bill of 1 .32%, most of those increased costs is
caused by the years the State of Iowa underfunded the homestead property tax credit.
The increases passed by the City Council would have only created an average annual
increase in the city portion of the property tax bill of 0.69% from FY1987 to FY2016.
If the FY2016 budget recommendation is approved, there will be tax and fee increases.
Taking into consideration the impact on the average homeowner calculating property
taxes, water fee, stormwater fee, sanitary sewer fee, refuse fee, and utility franchise fee,
since FY1987 the average annual increase in the cost of city services is $37.07.
Before I spell out the budget issues the City is facing and the corresponding fee
increases that will be needed to help deal with these issues, I would like to first assure
you that the City will continue to first look internally at opportunities to operate more
efficiently and for sacrifices City employees can make, recognizing that citizens will be
asked to pay more.
STAFFING
The recommended budget for FY2016 includes 701 .39 full-time equivalent (FTE)
employees, a net decrease of 4.55 FTEs, or 0.64% decrease from FY 2015. The
recommended budget provides funding for a net decrease of 3.39 FTEs related to
general fund departments.
Since 1981 , the city has minimized the number of positions added. If the recommended
staffing changes are approved, the City will have reduced its workforce by 3.8% since
the 1980s. This is in spite of all the new services that have been added in that time
period including staffing-intense activities like recycling and combined county-wide
public safety dispatching. Also, the number of sworn Police Officer positions has
increased by 33 positions over that time period.
The FY2016 budget recommendation will make that staff reduction more pronounced
and includes the elimination of 11 full-time positions, 6 of these through lay-offs (with 2
of the employees able to be placed in other vacant positions). The five positions that
were eliminated due to not receiving the Lead Paint Hazard Mitigation grant results in a
reduction of$231 ,472 in employee expense. There is a budget savings of$415,966
resulting from the other six full-time positions eliminated ($220,731 general property tax
funded, $140,408 sanitary sewer funded and $54,827 water funded). These actions
result in a combined savings of$647,438.
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The positions recommended for elimination are:
Department FTE Type Position
Economic Development -1.00 FT Economic Development Coordinator'
Economic Development -1.00 FT Assistant Economic Development Director'
Economic Development -1.00 FT Confidential Account Clerk'
Housing -1.00 FT Lead Paint Inspector
Housing -1.00 FT Lead Paint Program Supervisor
Housing -1.00 FT Lead Paint Assistant
Housing -1.00 FT Healthy Homes Supervisor
Housing -1.00 FT Healthy Homes Program Inspector
Parking -0.33 PT Iowa Street Ramp Cashier
Recreation -0.32 PT Recreation Classes Custodian I
Recreation -0.65 Seasonal Recreation Supervisor
Recreation -0.21 Seasonal Concession Worker 11
Recreation -0.47 Seasonal Pro Shop Attendant
Transit -1.50 PT Bus Operator Route Reconfiguration)
Transit -0.42 PT Bus Operator (Summer Trolley Modification)
Water -1.00 FT FT Secretary Reclassified as PT
Water & Resource Recovery -1.00 FT Plant Operator
Water & Resource Recover -1.00 FT Plant Operator
Total FTE Reduction -14.90
The Fiscal Year 2016 budget recommendation includes additional City employees. The
recommended additions are as follows:
Department FTE Type Position
Building Services 0.33 FT Custodian I FT 1/1/15 Affordable Care Act
Economic Development 1.00 FT Economic Development Project Manager'
Economic Development 0.50 PT Confidential Account Clerk'
Finance 0.13 FT Cashier FT 1/1/15 Affordable Care Act
Multicultural Family Center 0.28 FT Assistant Director (Change from Part-Time "'
Park 0.10 Seasonal Dubuque Industrial South Laborer
Parking 0.50 PT Intermodal Facility Laborer
Police 0.12 FT Clerk Typist FT 1/1/15 Affordable Care Act
Public Works 0.17 Seasonal Sanitation Driver
Recreation 1.01 Seasonal Recreation Field Supervisor
Recreation 0.10 Seasonal Preschool Teacher
Transit 1.00 FT Transit Manager"
Transit 1.00 FT Transit Operations Supervisor"
Transit 1.00 FT Confidential Account Clerk"
Transit 0.50 PT Operations Assistant"
Transit 0.50 Seasonal Marketing Intern"
Transit 0.50 PT Intermodal Facility Laborer"
Transit 0.08 PT Bus O erator (Training Hours
Transit 0.03 PT Transit Dispatcher- ICAAP Grant
Water 0.50 PT FT Secretary reclassified to PT
Water & Resource Recovery 1.00 FT Environmental Engineer
Total FTE Addition 10.35
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' The reorganization of the Economic Development Department will save $130,488
in Fiscal Year 2016.
"The City of Dubuque will save $51,784 in Fiscal Year 2016 by not renewing the
management contract for the Jule and brining the operation in-house.
'The Multicultural Family Center Board of Directors has agreed to provide $31,000
a year for the next three years to fund this part-time position upgrade to full-time.
The City organization will also be working short-handed in that the hiring freeze is
recommended for continuation through June 30, 2016, the end of FY2016, for a
potential savings of$751 ,479.
The positions frozen in FY2016 are as follows:
Department FTE Type Position
City Manager's Office 0.60 PT Management Intern
City Manager's Office 1.00 FT Secretary
Engineering 1.00 FT Traffic Engineering Assistant
Information Services 1.00 FT Help Desk Technical Support
Library 0.50 PT Library Aide
Library 0.75 PT Library Assistant
Library 0.75 PT Library Assistant
Library 0.50 PT Library Assistant
Library 0.18 PT Library Clerk
Park 1.00 FT Assistant Horticulturalist
Park 1.00 FT Maintenance Worker
Park 1.00 FT Park Ranger/Maintenance Worker
Park/Public Works 1.00 FT Assistant Horticulturalist
Park/Recreation 0.20 PT Custodian
Police 1.00 FT Records Clerk
Water 0.50 PT Secretary
Total FTEs Frozen 11.98
There is also a restriction on travel for continuing education resulting in a budget
savings of$426,929.
The City employees are a high-functioning team with caring and talented people doing
important work. One of the key responsibilities of the City Manager is to make sure that
the resources and processes exist to maximize their success, and the success of
partner organizations.
I am sorry to say that in FY2015 and Fiscal Year 2016 that is proving to be a particular
challenge. I feel even worse that it appears that the issues causing this are more
systemic than transient. For instance, the State of Iowa property tax reform legislation
and the reductions in gaming resources are challenges that are here to stay.
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The Mayor and City Council have been very supportive of providing the resources
needed to achieve what you expect to get accomplished. We all understand that the
City must operate within fiscal constraints many times dictated by others -- in this case,
the Iowa and Illinois state legislatures, and others.
Another sacrifice I am asking the non-bargaining unit City employees to make in this
FY2016 budget recommendation is to accept that they will receive no pay raise. This
will be a savings of$487,913 ($376,709 general property tax fund).
The FY2016-FY2020 capital improvement program budget has undergone significant
modifications eliminating or delaying many projects and reducing future debt issuances.
STATEGIC USE OF DEBT
Statutory Debt Limit Used
(as of June 30th)
95%
90.49%
90%
87.49%
4. 8 .49%
85%
83.87% 84.69' 82.03%
80% 78.83% 79.42%
77'2 74.37 4.47%
75% 76.12
70% 72.66% 71 7M 7126 7020%
66.04% 65.91%
A48
65% 67 3%
63.69 63.89 .
60% 1 1 61.56%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 2D FY 21 FY 22 FY 23 FY 24 FY 25
SMG Recommended tFY15 Adopted
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Total Debt
(In Millions)
$309.1
$310
$302.3
2 $290.1
$290
$279.9
271. $278.0
$270 $265' 267.4
$269.1 $267.0 $270.
$268.8 $255,9
$256.4
$250
$248.0 244.3
$247.4
$242.0
$230
26.2
$217.
$210
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25
#FY16Recommended tFY15Adopted
Top 10 Capital Projects 0997-2020)*
# Project Description FY2015 Adopted Cost FY2016 Recommended Cost Change
1997-2019 1997-2020
1 Streets Project(Engineering&Public Works) $104,247,794 $120,006,524 $15,758,730
2 Bee Branch Creek Watershed Project $52,969,221 $98,376,440 $45,407,219
3 Sanitary Sewer-Maintain&Install $66,436,188 $81,388,070 $14,951,882
4 Parking Ramps $73,476,725 $76,171,243 $2,694,518
5 Water and Resource Recovery Center $67,885,000 $74,285,000 $6,400,000
6 America's River Project $70,674,035 $70,674,035 $0
7 Southwest Arterial $43,447,955 $40,476,841 ($2,971,114)
8 Airport Terminal Project $37,781,620 $37,518,004 ($263,616)
9 Industrial Parks $36,096,331 $35,683,418 ($412,913)
10 Stormwater-Maintain&Install $28,488,986 $33,059,715 $4,570,729
Total $581,503,855 $667,639,290 $86,135,435
*These are total expenses on projects whether debt was used or not.
Rev.1/26/16
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City of Dubuque
Top 10 Debt Uses
As of June 30, 2016
mWWIt Issuanc
Outstandin Amou
1 Water& Resource Recovery Center 70,287,700 77,333,000
2 Stormwater Improvements 69,865,626 77,133,791
3 Parking Improvements 38,057,492 44,611,714
4 Water Improvements 26,681,510 34,807,242
5 TIF Rebates/Bonds to Businesses 19,266,286 24,483,989
6 GDTIF Incentives/Improvements 18,066,669 21,805,968
7 Sanitary Improvements 12,274,471 14,193,270
8 DICW Ex ansions 11,176,274 18,620,412
9 Roshek Building Loan Guaranty 10,000,000 10,000,000
10 Street Improvements 6,652,790 7,319,967
Total 282,328,818 330,309,353
The organizations the city partners with through grants and purchase of service
agreements will also be asked to sacrifice. There will generally be a 10% funding
reduction in these categories for a savings of$172,668 as follows:
FY15 FY16 FY16
Grant Program Funding Request Recomm'd Decrease
Arts and Culture Grant Program for Special
Projects $35,000 $35,000 $31,500 $ 3,500
Arts Operating Support Funding $210,000 $210,000 $189,000 $(21,000)
Community Foundation of Greater Dubuque -
Pro'ect Hoe $75,025 $75,025 $67,523 $ 7,503
Community Foundation of Greater Dubuque -
Every Child/Ever Promise $25,000 $25,000 $22,500
Community Foundation of Greater Dubuque -
Inclusive Dubuque $75,000 $75,000 $67,500 $(7,500)
Crescent Community Health Center -
Operations $25,000 $25,000 $22,500 $ 2,500
Dubuque Area Labor Management Council $30,000 $30,000 $27,000 $ 3,000
Dubuque Main Street $74,276 $76,504 $66,848 $(7,428)
DuRide $25,000 $35,000 $16,866 $(13, 68
ECIA Prosperity Iowa $5,650 $5,650 $5,085 $(565)
ECIATransportation Planning $10,000 $10,000 $9,000 $(1,000)
Faces & Voices Conference $6,000 $6,000 $5,400 $(600)
GDDC - Director of Sustainable Innovation $125,000 $100,000 $100,000 $ 25,000
GDDC - Marketing $40,000 $40,000 $36,000 $(4,000)
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GDDC - NEXT campaign 2013 $185,000 $185,000 $166,500 $(18,500)
GDDC - Operating $95,613 $95,613 $86,052 $(9,561)
GDDC - Retail Expansion $35,000 $35,000 $31,500 $ 3,500
GDDC -Workforce Solutions Initiative $125,000 $125,000 $112,500 $(12,500)
GDDC -Dubuque Works $100,000 $100,000 $90,000 $(10,000)
Hills & Dales: Senior Center $ 20,000 $20,000 $18,000 $(2,000)
Operation New View $20,151 $31,700 $18,136 $(2,015)
Proudly Accessible Dubuque $15,000 $30,000 $13,500 $(1,500)
Purchase of Services Grant Pool - CDBG
Funded $23,005 $23,005 $20,705 $(2,301)
Purchase of Services Grant Pool - General
Property Tax Funded $80,784 $80,784 $72,706
Special Event Grants $3,500 $3,500 $3,150 $(350)
Sustainability Collaborative Community Grants $25,000 $25,000 $22,500 $(2,5
Total $1,489,004 1 $1,502,781 $1,321,970 $(172,668)
Finally, the City will continue the freeze on certain training and travel for City employees
saving approximately $431 ,000.
The following issues have had a major impact on the FY2016 recommended budget:
1 . Gaming revenues generated from lease payments from the Dubuque Racing
Association (DRA) have been decreased significantly (-$555,123) based on
revised projections from the DRA. This follows a $655,577 decrease in FY
2014 and an $811 ,431 decrease in FY 2015.
The State of Illinois passed a Video Gaming Act on July 13, 2009 which
legalized the use of Video Gaming Terminals in liquor licensed
establishments including bars, restaurants, truck stops and certain fraternal
and veterans' organizations. In the part of Illinois that impacts the Dubuque
market, the first year of operation of video gaming terminals generated $1
million in revenue monthly. The use of video gaming terminals has now grown
to $9 million monthly which has caused a reduction to the gaming market in
Dubuque. The Mystique Casino and Diamond Jo Casino average monthly
revenue is $8.7 million. This is a similar impact as if a casino the size of the
Mystique Casino and the Diamond Jo Casino combined was built half-way
between Dubuque and Rockford.
The hotel acquisition by the Dubuque Racing Association has helped to make
the Mystique Casino a more competitive gaming option and is expected to
generate $400,000 in profit in calendar year 2015.
2. Vanguard Appraisals, Inc. was hired by the Dubuque Conference Board to do
a property revaluation of commercial and industrial property. Vanguard
applied size discounts to large office buildings, large factories and distribution
buildings due to the size and limited number of buyers. Warehouse sized
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buildings had a size discount applied which ranged on the higher end from
35%-50% for buildings 35,000 — 50,000 square feet and greater. Office sized
buildings had a size discount applied that ranged on the higher end from
15%-30% for office buildings 15,000 — 30,000 square feet and greater.
Most of Dubuque's large buildings are located within urban renewal areas.
The taxable value in the Greater Downtown Urban Renewal Area was
reduced $22,142,511 which resulted in reduced tax increment financing
revenue of$666,122. The taxable value in Dubuque Industrial Urban
Renewal Area was reduced $3,197,137 which resulted in reduced tax
increment financing revenue of$96,181 . The reduction in revenue in the
Greater Downtown TIF urban renewal area has resulted in reduced revenues
to make debt payments and it will be necessary for the general fund to
support $78,242 in FY 2016 and $93,868 in FY 2017 of debt service
payments. In addition, the Greater Downtown TIF has historically supported
$562,387 in parking related debt in the downtown. It will be necessary to
increase parking fees to enable the parking fund to meet its debt obligations.
3. Most of the City's multi-residential property is located in the Greater
Downtown Urban Renewal Area. Beginning in Fiscal Year 2017, multi-
residential property will begin to implement a rollback which will eventually
equal the residential rollback. The loss in tax revenue of$453,252 from multi-
residential property when fully implemented will not be backfilled by the
State. The loss in tax revenue by year is as follows: $140,777 in FY 2017;
$179,171 in FY 2018; $217,565 in FY 2019; $255,959 in FY 2020; $294,353
in FY 2021 ; $332,746 in FY 2022; $371 ,140 in FY 2023; and $453,252 in FY
2024. This change and other revenue shortfalls will require increases in
rental license and inspection fees beginning in FY 2015, the current budget
year, ending the subsidy of the rental inspection program by General Fund
property taxes.
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Multi-Residential Property Tax
Based on Average Assessed Value$169,990
$6,000 $5732
$5 333
5 053
$5,000 S4 642
S4 631
$4421
$ 210
$4,000 $3 769
$3 579
S3 129
$3,000
$2,000
$1.000
$0
FY14 FY15 FY16 FY17 FYI FY19 FY20 FY21 FY22 FY23 FY24
•MultWsident'ral Property Tax Paid
4. The other elements of the property tax reform passed by the Iowa Legislature
in 2013 have created a tremendous amount of uncertainty in the budget
process. While the State has committed to provide some funding for the City
revenue reductions caused by the decrease in taxable value for commercial
and industrial properties, key legislators are quoted in the newspaper from an
appearance at an Iowa Taxpayers Association meeting as casting doubt on
the reimbursements.
Wapello Republican House member Tom Sands was quoted as saying about
the payments to cities, "I haven't seen anything at the Capitol that's been
carved in stone, except the word 'Iowa' on the outside corner of the Capitol."
Republican House Speaker Kraig Paulsen said, "I think in the short term the
backfill is pretty solid, in out years, as the legislature changes, that question
will have to be asked and answered again."
5. Water usage and water department expenses vary from year to year based
on several factors, especially the weather. Winter weather affects the number
of water main breaks that must be repaired. Above or below average rainfall
in spring and summer dramatically impact water usage. This was especially
acute in calendar year 2014, the coldest year in Dubuque on record,
including no days that reached 90 degrees. When actual usage does not
meet the usage projections, revenue projections are not met. Although there
have been water rate increases, the actual revenue from those increases has
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been lower than projected and revenue is not meeting expenses. Sanitary
sewer revenue is based on water usage so those projections and revenues
are directly impacted by water.
6. Beginning in Fiscal Year 2010, the City's auditors began reclassifying some
Water Fund capital expenditures as operating expenditures. The capital
expenditures that were reclassified were related to water main repairs, which
in most cases were very minimal in length and did not extend the life of the
asset. This reclassification has caused a $1 million shift from capital
expenditures to operating expenditures.
The City's water fund also has outstanding revenue bonds with covenants
requiring debt service coverage of 1 .25 times the annual debt service
payment. The sewer fund has outstanding State Revolving Fund revenue
loans that have bond covenants that require debt service coverage of 1 .10
times the annual debt service payment. The debt service coverage for both
funds must be calculated on accrual basis rather on cash basis, making it
much more difficult to project because the City budgets and prepares
projections on a cash basis.
It will be necessary to recommend a series of significant Water rate
increases over the next several years to address cash flow issues, create a
reserve fund, and meet the water bond covenant requirement in Fiscal Year
2016. In addition, the administrative overhead that is paid by the Water and
Sewer funds to administrative departments will need to be reduced. This will
result in a reduction of general fund revenue of$1 ,274,528 in FY 2016.
7. In November 2014, Moody's Investors Service affirmed Dubuque's Aa2 bond
rating but assigned a negative outlook. In announcing the affirmation of
Dubuque's Aa2 rating, Moody's noted that the City's general fund
balance/reserve declines. The general fund reserve is a contingency fund
and a percentage of operating expenses held in reserve for unforeseen, one-
time expenses that may arise. Dubuque's spendable general fund reserve
declined from 24 percent of general fund revenues in fiscal year 2013 to 17
percent in FY 2014. The spendable general fund reserve is projected to
decline to 12 percent in FY 2015. This decline in the general fund reserve is
due to planned capital expenditures of$3 million in FY 2014 and $2 million in
FY 2015.
Moody's prefers Aa2-rated organizations to have a general fund reserve
greater than 20 percent. The City of Dubuque's fund reserves policies
require a 10 percent general fund reserve and states the City may continue
to add to the minimum balance when additional funds are available until 20
percent is reached.
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It will be necessary for the City to begin increasing its general fund reserve
which will require tax and fee increases and reductions in the capital
improvement program. There is $828,657 in general fund budget cuts in FY
2015 recommended to reduce the reduction in the general fund reserve from
$2.8 million to $2.0 million. In addition, the FY 2016 budget includes an
addition of$608,480 to the general fund reserve.
8. When the Fiscal Year 2015 budget was inputted into the general ledger, the
property lease for the ABC building was inadvertently entered as $455,894
instead of$45,894 which resulted in a revenue shortfall of$410,000.
9. Fiscal Year 2015: As in FY 2014, the City Council will need to consider a
budget amendment in FY 2015, the current budget year, to reduce
expenditures to reflect the revenues not meeting projections.
To deal with these issues I am recommending the following fee increases in addition to
the budget efficiencies I have already reviewed:
SERVICE RATES AND FEES
During the last recession, Dubuque fared better than most communities. Before and
during those years, the City kept its property tax rate and rates and fees for city services
among the lowest in the state -- which helped residents and businesses keep their
expenses down during challenging times. Now, as the national economy continues to
show signs of sustained growth and improvement and Dubuque continues to enjoy a
healthy economy, the City must make adjustments to those rates and fees to cover the
costs incurred in delivering those services and programs in light of the revenue
reductions previously described. While most of Dubuque's rates and fees are the lowest
in the state or below average, the quality of those services is above average. Through
prudent investments in related infrastructure, equipment, and staffing in recent years,
critical services like Dubuque's water, sanitary sewer, curbside collection services, and
stormwater management are among the best in the state.
Water
I am recommending the water rate increase from $24.36 per month (6,000 gallon per
month average household rate) to $26.80 in FY2016. This represents a 10% increase
and an average monthly impact to residential customers of$2.44 or an additional
$29.28 for the year. This rate translates to just $0.0045 for a gallon of award-winning,
great-tasting, safe water. When compared to the recommended FY 2016 rates of Iowa's
six other large cities that soften their water, Dubuque would have the third-lowest water
rate. The highest rate (West Des Moines, $31 .82) would be 18.73% higher than
Dubuque's FY2016 rate, and the average ($28.11) would be 4.87% higher than
Dubuque. In this case, the FY2016 rate would be below average for an above average
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service and product while we continue to invest in water infrastructure improvements
and service extensions.
Rank City Water Rate
(6,000 Gallons/residence avg.)
7 West Des Moines $31.82
6 Iowa City $30.22
5 Ames $28.22
4 Council Bluffs $27.18
3 Dubuque $26.80
2 Des Moines $25.71
1 Cedar Rapids $25.48
Average w/o $28.11
Dubuque
Sanitary Sewer
I am recommending Dubuque's sanitary sewer rate increase from $33.58 (based on an
average household rate of 6,000 gallons per month) to $36.96 in FY2016. This
represents a 10% increase and average monthly increase to residential customers of
$3.38 or an additional $40.56 for the year. If the recommended rate is approved,
Dubuque would have the third-highest rate of Iowa's 10 largest cities. The highest rate
(Des Moines, $42.28) would be 14.39% higher than Dubuque's rate and the average
($31 .70) is 14.23% lower than Dubuque.
Dubuque's sanitary sewer rate is above average, but so is the service and our
infrastructure. It is important to note that, of these 10 cities, Dubuque has made the
most extensive improvements to its wastewater treatment facility and process and now
has one of the most-advanced facilities in the state. Dubuque's Water & Resource
Recovery Center underwent a nearly $70 million upgrade that was completed in 2013
and currently operates at 65 percent of its capacity. It features methane
production/capture and co-generation to produce electricity and create heat for the
operation of the facility. It is expected to be electrically self-sufficient within a few years
and will save $250,000 in annual energy expenses. It also now better serves local
industries by accepting high-strength waste. The project is more environmentally
friendly than the former waste incineration and responded to a US EPA consent decree.
It is also important to note that Dubuque's hilly terrain and rocky soils make extension of
sewer and water lines much more expensive than in other cities.
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Rank City Sewer Rate
(Based on 6,000 Gallons/month)
10 Des Moines $42.28
9 Davenport $40.59
8 Dubuque $36.96
7 West Des Moines $36.82
6 Iowa City $36.08
5 Sioux City $34.55
4 Ames $32.57
3 Cedar Rapids $22.81
2 Waterloo $22.40
1 Council Bluffs $17.21
Average w/o $31.70
Dubuque
Curbside Collection
I am recommending the basic rate for curbside collection fee increase from $13.24 per
month to $13.90. This represents a 5% increase or a $0.66 increase per month or
$7.92 for the year. If adopted, this would give Dubuque the fifth-lowest rate among
Iowa's 10 largest cities. The highest rate (Ames, $26.25) would be 89% higher than
Dubuque's rate, and the average rate ($15.91) would be 14% higher than Dubuque.
The monthly curbside collection fee not only covers the City's costs to collect curbside
trash and recycling from its customers, but also the landfill fees it pays to the Dubuque
Metropolitan Area Solid Waste Agency.
Rank City Monthly Rate Pay As You
Throw
10 Ames $26.25 No—Private Service
9 Cedar Rapids $20.31 Yes
8 Council Bluffs $18.00 Yes
7 Iowa City $15.90 Yes
6 Sioux City $15.30 Yes
5 Dubuque $13.90 Yes
4 Des Moines $13.00 Yes
3 Waterloo $12.00 No
2 Davenport $11.92 Yes
1 West Des $10.55 Yes
Moines
Average w/o $15.91
Dubuque
Stormwater
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This budget includes the recommendation to increase the stormwater rate (monthly rate
for most households based on one single family unit or SFU) from $5.98 per month to
$6.38 per month. This is a 6.79% increase and equates to $0.40 per month or $4.80 for
the year. This is consistent with ordinance 16-14 that the City Council passed in March
2014 establishing future stormwater rates. The highest rate among Iowa cities with
stormwater utilities (Des Moines, $10.95) would be 72% higher than Dubuque's rate,
and the average ($3.93) would be 38% lower than Dubuque.
Rank City Stormwater
Rate
35 Des Moines $10.95
34 Dubuque $6.38
33 StateCenter $6.25
32 Clive $6.13
31 Grimes $5.79
30 Johnston $5.55
29 Ankeny $5.50
28 Waterloo $5.39
27 Windsor Heights $5.25
26 Forest City $5.00
25 Cedar Falls $4.90
24 Marion $4.80
23 Masrshalltown $4.26
22 Waukee $4.25
21 West Des Moines $4.25
20 Ackley $4.00
19 Urbandale $4.00
18 Iowa City $3.50
17 Ames $3.45
16 Bettendorf $3.40
15 Bondurant $3.25
14 Carroll $3.00
13 Cedar Falls $3.00
12 Perry $3.00
11 Sac Ciy $3.00
10 DeWitt $2.75
9 Garner $2.63
8 Davenport $2.49
7 Burlington $2.36
6 Cedar Lake $2.28
5 Hiawatha $2.25
4 Boone $1.95
3 Sioux City $1.84
2 Mason City $1.75
1 Marengo $1.50
Average w/o Dubuque $3.93
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If these recommended increases are adopted, the total increase for the average
homeowner's city utility and city property tax expense for FY2016 would be $101 .44 for
the year. The average total annual cost of all City services for the average Dubuque
homeowner in FY2016 is $1 ,756.08, a 6.1% increase over FY2015's average of
$1 ,654.64.
Franchise Fees
I am also recommending that Dubuque's franchise fees on natural gas and electricity
sold within the city limits increase from 3% to 5% for FY2016. According to information
from the Iowa League of Cities and Iowa Utilities Board, 70 cities in Iowa have franchise
fees and 19 of those communities charge 5%. Almost a quarter of 1% of this increase
is going to pay the debt on the judgment bond that will be needed to pay the $2.6 million
of the Zaber Utility Franchise Fee lawsuit.
Park and Recreation Fee Increases
I am recommending the admissions fees for Flora and Sutton Pools be increased to
generate $59,528 as follows:
• increase the adult daily admission fee from $3 to $4 (state average is $4.42)
• increase the youth daily admission from $1 .25 to $2 (state average is $3.62)
• decrease the toddler (ages 0-3) daily admission from $0.50 to free
For annual pool passes, I am recommending a 28% increase, which will still keep two
below the state average and one equal to it:
• increase the family pass from $94 to $120 (state average is $146.53)
• increase the adult pass from $60 to $76 (state average is $76.39)
• increase the youth pass from $34 to $44 (state average is $59.66)
The recommended budget also includes annual golf cart fee increases in order to
maintain the 100% self-support guideline for Bunker Hill Golf Course.
Recommendations include increasing the season cart pass by $10, 18-hole cart by
$1 .50, 18-hole half-cart by $0.75, 9-hole cart by $0.50, 9-hole half-cart by $0.50 and
cart punch cards by $5.
In addition, weekday rounds are recommended to increase by $0.50; weekend 9-hole
round increase by $0.25; weekday 9-hole round by $0.25; and league rounds increase
by $0.25.
Parking Fee Increases
The City is now subsidizing the parking system through tax increment financing revenue
by $562,387. It is recommended that this subsidy end. The following increases are
recommended:
• Space Rental (+$5.00 per month for ramps and parking lots),
• Parking Meter Rates for 1 , 2, 4 hour meters ($+0.25 per hour),
• Ticket Fines for Expired Meter ($+3.00),
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• Meter Hoods (+$5.00 per month),
• Meter Permits (+$5.00 per quarter),
• Residential Parking Permit District (RPPD) Permits (+$5.00 per year), and
• City Vehicle Stickers (+$5.00 per month).
Housing Inspections
The general fund taxpayers now subsidize the rental inspection and licensing program
by $110,149. It is recommended that this subsidy end beginning in the current year
(FY2015) and beyond. The following increases are recommended:
• Structure Annual Rental License +$13,
• Dwelling Unit Annual Rental License +$8,
• Rooming Unit Annual Rental License +$7,
• New Rental Fee (CSC Inspection) $40,
• Re-Inspection Fee for 2nd and subsequent re-inspection +$45,
• New Dwelling Unit Inspection Fee $70,
• New Rooming Unit Inspection Fee $40, and
• Confirmed Complaint Inspection Fee $85.
COMMUNITY ISSUES
Workforce Development Challenges
The Dubuque region's projected increase in employment and decrease in working-age
population will yield increasing workforce shortages over the next 10 years. According
to data gathered through Greater Dubuque Development Corporation's InfoAction
program, workforce challenges have solidified as the #1 community weakness, the #1
barrier to growth, and the #1 reason business leaders cite for considering expansion
outside of Dubuque. In 2014, more businesses expressed a challenge with workforce
recruitment (63%) — levels that surpass peers in both Iowa (56%) and the U.S.(53%).
The challenges are even greater in some key sectors like manufacturing,
healthcare/education, construction, and transportation. This skills gap is of particular
concern and will require concerted efforts to address.
Greater Dubuque Development reports that as our workforce continues to age and
retire, we will be challenged to put more talent in "the top of our bucket than leaks out
the bottom of it." They conducted a Skills Gap Analysis in 2014 to provide accurate
information on projected workforce gaps which, in turn, will guide successful strategies
to prevent the shortages. The analysis showed the Top 50 occupations in this report
(out of 840 occupation classifications that exist) the seven-county Dubuque region will
have a projected gap of 7,471 openings over the next 10 years. It also predicts an
11 .3% employment growth in the Dubuque region from 2014-2024 but a decrease of
3.9% in the working age population. To address this challenge and avoid skilled
workforce gaps, we must train, retain, and recruit talent to our region.
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Dubuque's six current industrial parks occupy more than 1 ,000 acres and are home to
54 businesses, 46 of which are local business expansions. More than 6,400 people
work at these 54 locations. As additional existing businesses look to expand and
businesses with unique needs look for competitive advantages to locating in Dubuque,
we must plan for future industrial park space needs.
Bee Branch Watershed Flood Mitigation Project
The $200 million Bee Branch Watershed Flood Mitigation Project will see some major
components constructed over the next two years, including the Bee Branch Creek
Project. There have been six Presidential Disaster Declarations since 1999. The City
has received over $127 million in federal and state grants to implement this project that
will protect over 1 ,350 homes and businesses from flooding. The $98.5 million grant
from the State of Iowa will be received over 20 years so the City will need to issue debt
to access these funds in a timely manner.
Southwest Arterial
Following the completion of the Southwest Arterial in 2019, the project has the potential
to generate $80 million in property taxes, $1 .67 billion in economic output, $653 million
in labor income, and $1 .02 billion in value added from 2021 to 2030. The Southwest
Arterial will also annually generate $135 million in state and local taxes and $130 million
in federal tax from new economic development, as well as save $30 million for the 10-
year period. This project will also generate $16 million in property tax, $304 million in
economic output, $24 million in state and local taxes, and $24 million in federal taxes
due to economic development, in addition to $3 million in safety savings from 2030
onwards. To leverage this investment, the City will need to extend sewer and water
lines and improve interconnecting road, like North Cascade Road.
CITY COUNCIL GOALS AND PRIORITIES
Each year, the Dubuque City Council goes through a goal-setting process.
In 2014, City Council members reaffirmed the 15-year vision statement, mission
statement, and goals over the course of two days in late August and a follow-up session
in early October. These City Council decisions guide how City resources are committed
and priorities over the course of the year and direct how the recommended budget is
developed. With that in mind, it is important to review them in this document.
2029 VISION STATEMENT
The city of Dubuque is a progressive, sustainable city with a strong diversified economy
and expanding global connections. The Dubuque community is an inclusive community
celebrating culture and heritage and has actively preserved our "Masterpiece on the
Mississippi." Dubuque citizens experience healthy living and retirement through quality,
livable neighborhoods with an abundance of fun things to do and are engaged in the
community, achieving goals through partnerships. Dubuque city government is
financially sound and is providing services with citizens getting value for their tax dollar.
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CITY MISSION STATEMENT
The City's mission is to deliver excellent municipal services that support urban living
and a sustainable city plan for the community's future and facilitate access to critical
human services which result in financially sound government and citizens getting
services and value for their tax dollar.
FIVE-YEAR CITY GOALS
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Improved Connectivity — Transportation and Telecommunications
FIVE-YEAR COMMUNITY GOALS FOR A SUSTAINABLE DUBUQUE
• Economic Prosperity
• Environmental Integrity
• Social/Cultural Vibrancy
FIVE-YEAR ORGANIZATIONAL GOAL
Financially Responsible City Government and High-Performance Organization
Top and high priorities for a 2014-2016 policy agenda were also identified.
TOP PRIORITIES (in alphabetical order)
• Arts and Culture Master Plan
• Central Iowa Water Association: Direction, Funding
• City Staffing Level: Evaluation, Direction, Funding
• Five Flags Center: Evaluation, Direction
• Inclusive Community: Action Plan
• Police: Review Best Practices
• Street Improvement Program: Funding
HIGH PRIORITIES (in alphabetical order)
• Annexation: Direction on Specific Actions
• Emerald Ash Borer: Policy, Program, and Funding
• Housing Code and Inspections: Review, Update/Upgrade
• Indoor Aquatic Center
• Port of Dubuque Park: Development
• Skate Park
• Workforce Market-Rate Housing
The City Focus magazine published in late 2014 highlighted the "outcomes" being
achieved by the City and its many partners in the private and public sectors. In this
context, outcomes are the RESULTS of the activities and efforts. These outcomes
represent impacts for Dubuque residents and businesses.
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It is important to review these outcomes, organized by City Council goals, in the context
of the FY2016 recommended budget.
Goal: Planned and Managed Growth
Guide growth to protect a strong, vibrant residential/central business core providing a
thriving mixed-use downtown, safe and healthy neighborhoods, increased visual appeal
and beauty throughout the city, and provide quality services to entire the community.
The desired outcomes of this goal for residents and businesses include:
• Stable property taxes for residents and businesses
• More job opportunities for all skill levels
• Choice of livable neighborhoods
• Opportunities for our children and grandchildren to stay in Dubuque
• Predictable future development
• Quality services to residents
Annexation: Dubuque has grown from 15,832 acres in 1993 to 20,248 acres in 2014, a
28 percent increase in 21 years through voluntary annexation. By extending city utilities
to industrial parks, nearly 7,000 acres were opened for private development since 1996.
Since 1996, the city's assessed value has increased from $1 .6 billion to $3.9 billion, a
144% increase. The implementation of the annexation study will require the extension of
City utilities.
City Tax Rate: In fiscal year (FY) 1987, the city portion of Dubuque's residential
property tax rate was $14.58 per $1 ,000 assessed value. In FY2016 recommendation is
to maintain the rate at $11 .03, more than a 24% reduction.
Downtown Revitalization: From 1985 through 2013, approximately $650 million has
been invested in downtown Dubuque through new construction, building rehab, real
estate sales, public improvements, and fagade renovations. Niney percent of this
investment has occurred since 2000. The net number of new jobs in the downtown
from 1985-2014 is 4,335, with 70% since 2000.
Parks, Recreation, and Green Space: Dubuque has 4,471 acres of parks and green
space, which represents 22% of the city's land area. As a result, 95% of Dubuque
homes are within a 10-minute walk to a park. This compares with the national average
of 65%.
Neighborhood Schools: Ninety percent of Dubuque homes are within a mile (25-
minute walk) or less to a public school and 62% are within a half-mile. Nationwide, 63%
of homes are within a mile walk of a school and 31 % are within a half mile.
Drinking Water: Dubuque's Eagle Point Water Plant is supplied by five shallow and
four deep wells and does not use water from the Mississippi River. The plant produces
an average of 7 million gallons of treated water per day. The plant has the capacity to
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produce up to 18 million gallons per day. The distribution system is composed of over
321 miles of water mains, 5,770 control valves, 2,876 fire hydrants, and approximately
23,500 service connections. In 1997, Dubuque was selected as having the best-tasting
municipal water in the world at the International Water Tasting and Competition.
Wastewater Treatment: Dubuque's Water & Resource Recovery Center underwent a
nearly $70 million upgrade that was completed in 2013 and currently operates at 65
percent of its capacity. It features methane production/capture and co-generation to
produce electricity and create heat for the operation of the facility. It is expected to be
electrically self-sufficient within a few years and will save $250,000 in annual energy
expenses. It also now better serves local industries by accepting high-strength waste.
Upward Mobility: According to the Equality Opportunity Project (2013), children born in
Dubuque to parents in the nation's lowest income category had a 17.9% chance of
being in the highest income category before reaching age 30. The national average is
10.6 percent. Dubuque ranks in the top 8 percent of the 741 areas examined, and first
out of 58 among similar-sized areas!
Comprehensive Plan: The comprehensive plan is a City Council-adopted document that
outlines the vision for the future growth and development of the city. It is built with ideas
and input from city residents, and reflects a consensus of community values. The plan
provides a roadmap to guide the physical, social and economic development of the city.
The Planning Services Department is currently in the early stages of seeking public
input to rewrite Dubuque's Comprehensive Plan.
Southwest Arterial: The Southwest Arterial will be completed by 2019 and will connect
the Dubuque Technology Park on U.S. Hwy 61/151 with the new Dubuque Industrial
Center West near U.S. Hwy 20. It will remove freight/truck traffic from downtown and
residential neighborhoods and encourage hundreds of millions of dollars of
development throughout the project corridor.
Goal: Partnering for a Better Dubuque
The City of Dubuque has developed and fostered over 50 local, state, regional, federal,
and national partnerships to implement the City Council's community vision. The
partnerships provide federal and state lobbying and advocacy for Dubuque, economic
and workforce development, education excellence, culture and arts initiatives, support
for families and children, public safety, housing opportunities, healthcare and wellness
programs, historic preservation, transportation, and delivery of human services, creating
a sustainable city and increased resident engagement in the city's governance
processes.
The desired outcomes of this goal for residents and businesses include:
• Bigger "bang" for tax dollars
• Enhanced economic development opportunities
• More ownership of end products — people involved in the process, and support
outcomes
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• Better access and use of facilities
• Protection of your interests
To achieve this goal, the City of Dubuque and its partners utilize the Collective Impact
Model to achieve change in our community. This approach features government, non-
profit, philanthropic, and private sector partners working toward the same goal,
measuring the same things, sharing information, and coordinating actions.
Greater Dubuque Development Corporation: Greater Dubuque Development is a
regional economic development organization serving the Greater Dubuque area. This
non-profit organization was founded in 1984, a partnership forged among local
governments, the business community, organized labor, and the non-profit sector.
Greater Dubuque focuses on business retention and expansion, workforce solutions,
new business recruitment, and sustainable innovation. Over the past 30 years,
employment in Dubuque County has increased nearly 60%. In November 2014, 62,200
people were employed in Dubuque County and the unemployment rate was just 3.5%.
However, significant challenges remain. According to 280 Dubuque employers
interviewed by GDDC in 2013 and 2014, workforce challenges have solidified as the #1
community weakness, the #1 barrier to growth, and the #1 reason for considering
expansion outside of Dubuque. In 2014, more businesses expressed a challenge with
workforce recruitment (63%) — levels that surpass peers in both Iowa (56%) and the
U.S.(53%). The challenges are even greater in some key sectors like manufacturing,
healthcare/education, construction, and transportation. A recent study revealed that
Dubuque faces a 7,500 worker shortage over the next 10 years.
DubuqueWorks: This collective impact initiative, with the Greater Dubuque
Development Corporation as the backbone organization, brings employers, funding
partners, workforce experts and educators together to meet the workforce needs of
local employers. Dubuque Works focuses on three goals:
• Human Capital: Partners identify and address recruitment, retention and
relocation needs as defined by greater Dubuque employers;
• Skill Development: Partners build workforce capacity by enhancing training
pathways to meet employer demand;
• Collaboration & Evaluation: Partners combine collaborative workforce efforts with
quality research to generate evidence-based practices that improve performance
and outcomes for local employers.
In addition to GDDC and the City, partners include: the Telegraph Herald, Dubuque
Area Chamber of Commerce, Iowa Workforce Development, Northeast Iowa
Community College, Dubuque Area Labor-Management Council, Community
Foundation of Greater Dubuque, East Central Intergovernmental Association, United
Way, Dubuque Community Schools, and Holy Family Catholic Schools.
In 2014, AccessDubuqueJobs.com investors hit an all-time high with 145 local
employers committed to attracting a talented workforce. An average of 84,318
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individuals visited the AccessDubuqueJobs.com site each month in 2014 and more than
120 Internship Opportunities were posted by local employers in 2014.
Opportunity Dubuque was also instrumental in Dubuque County being named the first
major metro in Iowa to be designated a Home Base Iowa Community, designated the
area as a center of opportunity for military veterans.
Over 150 newcomers were served through Opportunity Dubuque's Newcomer Service
Program from 34 unique employers which included 132 personalized tours of the
community. Nearly 140 individuals also participated in the Distinctively Dubuque
program for new residents.
A pilot program called Tech WORKS program was launched by Opportunity Dubuque
this fall at Dubuque Community Schools for high school students interested in pursuing
a career in advanced manufacturing, construction or engineering. Tech WORKS will
give students a clear pathway in high school to lead to further education and ultimately
a career they are passionate about. Along the way the student will enhance their skills
and abilities while making connections with potential employers. The goal of Tech
WORKS is to give opportunities and recognition to students that excel in more than just
a high grade point average. There are currently 30 students participating in the
program.
Project HOPE (Helping Our People Excel): The City of Dubuque, Community
Foundation of Greater Dubuque, and others have partnered since 2008 to support
Project HOPE to increase access to services in order to connect unemployed and
underemployed youth and adults to education and employment opportunities.
Project HOPE includes Re-engage Dubuque, a partnership between the Dubuque
Community School District, Northeast Iowa Community College (NICC), the Community
Foundation of Greater Dubuque and the City of Dubuque. Re-engage Dubuque
connects young people ages 16 to 21 who did not complete high school to alternative
education options and postsecondary education/training. Re-engagement coaches work
with these young people to develop personalized plans for completing a high school
diploma or a High School Equivalency Diploma (HSED) and exploring options for further
study. Since August 2012, the Reengage Dubuque coaches have connected with nearly
190 dropouts and enrolled 180 of them in online courses, alternative and/or traditional
high schools and adult education programs. Thirty-seven percent have completed this
program.
Earn It, Keep It, Grow It is Project HOPE's financial literacy program teaching families
skills to better utilize their financial resources. Two programs are BankOnDubuque and
Opportunity Passport. BankOn Dubuque connects unbanked and under-banked
families to traditional bank accounts through partnerships with the majority of our
community's financial institutions. Fifty-one families began a banking relationship.
Opportunity Passport provides matched Individual Development Accounts and
financial literacy training to youth aging out of foster care through a partnership with
Dupaco and Four Oaks. Fifty young adults acquired over $23,000, which was matched
by the Community Foundation of Greater Dubuque.
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The Community Foundation of Greater Dubuque and United Way are currently
engaging more than 50 nonprofit service providers to map the network of organizations
that serve people in need. The Network Mapping project will be used to identify
networks serving various needs in the community such as homelessness, hunger, basic
needs and others. Participating organizations have the opportunity to take part in
interviews, peer learning and trainings in order to build capacity and better serve people
in need. Once complete, the Network Map will be shared in the community and used to
inform a Community Needs Assessment beginning Fall 2015.
Smarter Sustainable Dubuque: Smarter Sustainable Dubuque is the research function
of the City's Sustainable Dubuque initiative. In includes, but is not limited to a unique
public/private partnership between the City of Dubuque, IBM Watson Research Center's
Global "Smarter Planet" Initiative and other key public and private sector partners. A
series of five pilot projects have been completed since 2009: Smarter Water (2010),
Smarter Electricity (2011), Smarter Travel (phase two starting soon), Smarter Health
and Wellness (2013), and Smarter Discards (2014). More than 2,000 Dubuque
households participated in one or more of these pilots and gained insights on their
households and businesses. The goal is the development of new "smarter" technologies
coupled with community outreach and implementation strategies. The model integrates
community engagement and education, more energy-efficient ways of operating
municipal services and buildings, decreased carbon emissions, new job creation,
increased financial savings, resource conservation and a higher quality of life for the
entire community. Working in conjunction with Greater Dubuque Development
Corporation, Smarter Sustainable Dubuque will also document the competitive
opportunities that come through "smarter" resource utilization. The next phase is
intended to focus on entrepreneurial efforts at StartUp Dubuque.
Washington Neighborhood Reinvestment: Since 2005, the Washington
Neighborhood Reinvestment Strategy has resulted in: 55 new homeowners, 32 rental
properties converted to owner-occupied homes, 90 owners used City homeowner rehab
programs, and Community Housing Initiatives partnering with the City to rehab 20
homes (13 complete). The Washington Neighborhood Development Corporation
(WNDC) has existed since 2009 as a nonprofit corporation to promote revitalization
efforts in the Washington Neighborhood. The initiation of the Housing and Community
Development Department's CHANGE (Comprehensive Housing Activities for
Neighborhood Growth & Enrichment) Program will see more substandard rentals
converted to homeownership in this neighborhood and beyond.
Every year, Greater Dubuque Development staff conducts face-to-face interviews with
more than 280 area business owners, CEOs, and top managers. This award-winning
program, known as InfoAction, provides a perspective on the area economy and
actionable data that helps guide our work in maximizing opportunities for regional
businesses. GDDC has recently expanded the InfoAction program to include
businesses in the Greater Downtown Urban Renewal District, especially the
Washington Neighborhood Sub-area and Central Avenue. Since July 2014, more than
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50 businesses have already welcomed on-site visits. GDDC's goal, as it pertains to the
the Washington Neighborhood and downtown area, is to work with public and private
partners to accelerate the positive transformation of parts of the downtown area to:
decrease in the number of abandoned/uninhabitable properties in targeted areas;
transform the perception of the targeted areas to spur commercial redevelopment and
capital investment; and increase tax-base revenues (residential and commercial).
Every Child I Every Promise: Every Child I Every Promise (ECEP), in strategic
alliance with the Community Foundation of Greater Dubuque, engages the community
to promote collaboration among youth-serving agencies, eliminate duplication of
services, gather effective data and create a more efficient system to deliver the Five
Promises to youth: Caring Adults, Safe Places, a Healthy Start, An Effective Education
and Opportunities to Serve. Through the Out-of-School Time Initiative, ECEP and its
partners are helping to expand learning time beyond the regular school day/year.
Thanks to these efforts, the Dubuque Community School District received a grant to
implement the Leadership After-School Program (LEAP) in two of Dubuque's middle
schools. LEAP offers a variety of after-school activities that are free for participants and
include a healthy snack. Outcome: More than 500 students at Jefferson and
Washington Middle Schools participated in the LEAP after-school program last school
year. ECEP served as a catalyst for the Dubuque Campaign for Grade-Level
Reading, a collaborative effort by funders and non-profit partners to ensure that more
low-income children succeed in school and are prepared for college, a career, and
active citizenship. The initiative focuses on the most important predictor of school
success and high school graduation: grade-level reading by the end of third grade.
Carnegie-Stout Public Library: Our public library is also a major partner in community
literacy efforts. In FY 2014, 2,319 children registered for the Carnegie-Stout Public
Library Summer Reading Program and 57 percent completed. In that same year,
13,663 people attended library programs for youth.
HEART Program: Partnering with the City of Dubuque, Dubuque Community Schools,
and Four Oaks of Iowa, Dubuque's Four Mounds Foundation created the Housing
Education and Rehabilitation Training (HEART) Program. Participants receive special
education services because they have not had great success in a traditional classroom
and are identified as at-risk for dropping out. Students in the HEART program are
leading community revitalization while building themselves up — working toward post-
secondary education, developing viable careers, and becoming better leaders. Since
2003, HEART students completed almost 80 community-changing service projects.
Students work in an innovative educational setting, spending half-days in HEART's
classroom and half-days on the worksite. They rebuild homes in Dubuque's downtown
neighborhoods, revitalizing community. To date, students have converted 37 derelict
rental units into 27 owner-occupied homes. About 15 young people participate annually,
most putting in over 500 service learning hours each year and earning a 91 %
graduation rate. A new program component, HEART Bridge, began in 2015 and bridges
the gap between high school graduation and a viable career. Students set a Career
Goal and Objectives, earn stipends, and save toward their goals. HEART matches their
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savings and coaches them in financial literacy, goal setting and use of their savings to
help young people meet success beyond graduation. The City is working with Four
Mounds to expand HEART.
Goal: Improved Connectivity: Transportation & Telecommunications
Our goal is to provide improved traffic flow throughout the city by reducing traffic
congestion, attaining better street conditions, elimination of obstructions, improved
visibility and increased commercial air service.
Desired outcomes of this goal for residents and businesses include:
• Reduced traffic congestion and improved traffic flow
• Better conditions of streets, eliminated obstructions, and improved visibility
• Commuting through telecommunications
• Greater economic opportunities
• Air access to multiple hubs
Southwest Arterial: In 2013, the City of Dubuque and the Dubuque Metropolitan Area
Transportation Study (DMATS) successfully negotiated the transfer of the Southwest
Arterial project to the Iowa Department of Transportation (IDOT). The IDOT, DMATS,
Dubuque County, and the City of Dubuque have budgeted over $100 million to build the
Southwest Arterial over the next five years and the IDOT has stated that cars will be
driving on the Southwest Arterial by the end of 2019. Following the completion of the
Southwest Arterial, the project has the potential to generate $80 million in property
taxes, $1 .67 billion in economic output, $653 million in labor income, and $1 .02 billion in
value added from 2021 to 2030. The Southwest Arterial will also annually generate
$135 million in state and local taxes and $130 million in federal tax from new economic
development, as well as save $30 million for the 10-year period. This project will also
generate $16 million in property tax, $304 million in economic output, $24 million in
state and local taxes, and $24 million in federal taxes due to economic development, in
addition to $3 million in safety savings from 2030 onwards. Additional benefits include
removing over 500 trucks a day from downtown streets and encouraging redevelopment
on Central Avenue and White Street. Almost 1 ,000 trucks per day will be removed from
Highway 20/Dodge Street. Additional traffic will be removed from Kelly Lane, Fremont
Avenue, Cedar Cross Drive, Rockdale Road, and other residential streets.
Annual Street Repaving Program: The Public Works Department has repaved over
194 centerline miles, almost two-thirds of Dubuque's 310 miles of streets, over the past
20 years through Dubuque's annual asphalt overlay program. Each year, old asphalt is
ground off the streets to be paved and is recycled into the new asphalt. Not only are
streets made safer and smoother, but property owners are not assessed for any of the
costs, unlike street reconstruction projects. This program is funded instead with monies
from Iowa's Road Use Tax Fund (gas and diesel fuel tax.)
Snow and Ice Control: The Public Works Department plows nearly 310 miles of streets
during and after each snow event, enabling residents to get to work, school, and
appointments, and allowing the delivery of important goods and supplies.
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Complete Streets: Through the Complete Streets Program, adopted by the City
Council in 2011 , the City's engineering department can design and construct streets for
all users, including cars, trucks, public transit, bicycles, and pedestrians, making the
street system more efficient and providing people more choices in travel. Recent
projects following the policy include the Historic Millwork District Complete Streets
Project, the 9th and 11th Streets One-way to Two-way Conversion Project, and the Elm
Street Reconstruction Project (9th to 12th streets).
Public Transit/The Jule: Public transit ridership in Dubuque has increased 28% over
the past five years. Rides per year have increased from 373,376 in FY2009 to 478,370
in FY2014, an increase of over 100,000 rides. During the same period, local property
tax support for the transit operating budget decreased by 34%, with services funded
through increased state and federal support, rider fare payments and community
partnerships. An improved route structure launched in January 2014 and based on
collection of empirical data through Smarter Sustainable Dubuque offers faster bus
transportation between downtown and the west end as well as new service areas,
increased service for some areas, trip times shortened by up to 50 percent, and
extended service hours. Ridership for FY2015 is expected to exceed 500,000 based on
monthly trends through November 2014.
Since 2012, a partnership with the three local private colleges has assisted with funding
for late night weekend service. This partnership includes prepaid rides for students who
showed their college ID for use on the daytime and nighttime routes. In its first year, the
partnership yielded 6,689 rides; in its second year, 22,529 rides (237% annual
increase); and in its third year, ridership is projected at 30,504 (35% annual increase)
based on monthly trends through November 2014.
In late 2013 and early 2014, The Jule coordinated with Greater Dubuque Development
Corporation and businesses in Dubuque Industrial Center West to evaluate work hours
and transportation needs and connections for workers traveling to the DICW. This
collaboration led to installation of additional bus stops, a bus shelter and increased
service; pickups in the industrial park were previously every hour and were increased to
every 30 minutes and service had ended at 4:55 p.m. and now goes until 6:15 p.m.
Since January 2014, an average of 2,950 rides/month were provided on the Yellow Line
that serves Dubuque Industrial Center West, a 142% increase in ridership from the
previous service that provided an average of 1 ,221 rides/month.
The City will be completing the five-year management agreement with ECIA and
assuming management of the system in-house.
Commercial Air Service: Dubuque residents and businesses have convenient access
to quality, viable, and competitive airport services and facilities. 2014 was a great year
for the Dubuque Regional Airport. In 2014, Dubuque had 34,410 passengers utilize the
three daily jet departures through the Chicago O'Hare International Airport. For the
year, Dubuque's traffic increased 6.81 % in departing passengers over 2013. From
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January - November 2014 (latest data available from U.S. Bureau of Transportation
Statistics), 93.10% of scheduled departures were completed. The airport's new $40
million terminal area project is on time and scheduled to be completed in 2016 and will
offer more conveniences and amenities for travelers.
Access to Trails and Bike Routes: The City coordinates planning and development of
bike/hike trails and facilities within the city and region, and secures funding for projects
through private, state and federal grant sources. Since the adoption of the Dubuque
Heritage Trail Master Plan in 1996, $15 million has been invested in trail infrastructure
and $4 million leveraged from private, state, and federal sources. A 53-mile nework of
trails (27.8 miles of signed on-street routes and 25.5 miles of off-road, paved, multi-use
trails) has been developed with connections to parks and the Mississippi riverfront,
through the community's oldest neighborhoods and the downtown, and to the
community's west side shopping and employment centers. Prior to 2000, no residents
lived within a mile of a bike/hike trail network. As of 2012, an estimated 81 % of the
population lived within one mile of a designated trail and, today, 100% of Dubuque
homes are within three miles of an off-road trail. According to the 2010 Census,
approximately six percent of the workforce in the Tri-State area walks to work daily. This
is more than double the national percentage for walking of 2.38 percent.
Goal: Economic Prosperity
Diversify the regional Dubuque economy by retaining, expanding and growing local
businesses, attracting new businesses, maintaining an abundance of employment
opportunities for persons of all skill and education levels, and offer top quality-of-life
options embracing a community where young professionals want to live and raise their
families.
The desired outcomes of this goal for residents and businesses include:
• Young professionals want to live here
• Our children want to stay or return to raise their families
• More retail, service and entertainment opportunities — keeping dollars in
Dubuque
• Insulation from economic cycles through diverse businesses
• Variety of job opportunities for residents
• Variety of education opportunities and internships for those jobs
• Entrepreneurial opportunities to start and grow businesses in the community
Average Hourly Wage in Dubuque County:
The average hourly wage in Dubuque County rose from $18.00 in 2007 to $23.38 in
2013, an increase of 30% that exceeded inflation by 17.5%.
The national average hourly wage rose from $20.95 in 2007 to $23.96 in 2013, an
increase of only 14.4% that exceeded inflation by just 2%. In 2007, the average hourly
wage in Dubuque County ($18) was 14.1 % below the national average hourly wage
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($20.95). In 2013, the average hourly wage in Dubuque County ($23.38) was only 2.4%
below the national average hourly wage ($23.96).
NEXT I Progress Tracking Wage Levels
SOURCE:Current Employment Statistics(CES)
UPDATED:12.31.14
DUBUQUE COUNTY WAGE LEVEL GOAL: $18.00+
$25.50
$25.00
$24.50
$24.00
$23.50
$23.00
$22.50
$22.00
$21.50
$2 1.0
$20.50 or
$20.00
$19.50
$19.00
$18.50 IF
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
t 2012-Benchmark t 2013-Year1 2014-Year2 2015-Year3 �2016-Year4 2017-Year5
1 $23.82 $23.02 $23.32 $23.29 $23.73 $23.77 $22.70 $22.82 $23.63 $23.30 $23.26 $23.91 $23.38
1 $23.62 $23.53 $23.11 $22.73 22.16 22.39 22.21 22.74 23.19 23.69 22.94
GOAL$18.00+
Employment: Dubuque County's total employment for 1983 was 37,600, it grew to
58,600 in 2013, and hit 62,200 in November 2014, a 65% (24,600) increase in just over
30 years.
Job Growth: Dubuque County's total employment of 62,200 in November 2014
represents an increase of 2,400 net new jobs over November 2014. This is over 4%
growth, the highest percentage of all state metro areas. Dubuque County is home to
just 3% of Iowa's population but it has seen 8.1% of the state's net job growth over the
last five years (2009-2013).
Regional Employment Comparison: From November 2012-2013, the number of jobs
in Dubuque increased by 1.35%. During that same time period, Decatur, Illinois, saw a
4.3% decrease; Manhattan, Kansas, a 3.5% decrease, and Peoria, Illinois, a 2.2%
decrease.
Unemployment: Dubuque County's unemployment rate for 2013 was 4.5% while the
nation's was 7.4%. Dubuque County's unemployment rate for November 2014 was just
3.5% while Iowa's rate was 4.3% and the nation's was 5.8%.
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Per Capita Income: Between 2000 and 2012, Dubuque's per capita income rose by
32.8%, exceeding the national growth by 2.9%.
Median Household Income: In 2000, Dubuque's Median Household Income (MHI)
($39,582) was 6% below the national MHI ($41 ,994.) In 2012, Dubuque's MHI ($50,885)
was just 1% below the national MHI ($51 ,017.)
Infrastructure and Amenities to Support Economic Development and Growth:
Industrial/Business Parks, Streets & Utility Services, Air Service, Housing, Parks &
Recreation Programming
Industrial Parks: More than 6,400 people work in Dubuque's industrial/technology
parks which cover over 1 ,000 acres.
Home Price Appreciation: Between 2008 and 2013, the average home price in
Dubuque grew by 9.71%, more than Sioux City (8.83%), Waterloo (6.28%), Iowa City
(5.32%), the Quad Cities (3.93%), Cedar Rapids (1 .33%), Council Bluffs (1 .02%), Des
MoinesM/est Des Moines (-0.50%), Chicago (-18.56%), Daytona Beach (-24.08%), and
the national average (-0.15%).
Population Change: From 1970 to 2010, Dubuque County's population increased by
8.4% while many other communities saw significant population declines: Gary, Ind. (-
54%); Detroit, Mich. (-53%); Youngstown, Ohio (-52%); Flint, Mich. (-47%); Cleveland,
Ohio (-47%); Dayton, Ohio (-42%); and South Bend, Ind. (40%).
Impact of Tax Increment Financing: To date, Dubuque's utilization of tax increment
financing, or TIF, has resulted in $481 ,532,857 of new investment and 8,621 jobs (5,859
new jobs and 2,762 retained jobs). From 2005 to 2018, Dubuque's taxing bodies will
receive $6.7 million before those TIF district's expiration. In 2019, when the Technology
Park South and Dubuque Industrial Center West TIF districts expire, more than $2.2
million in revenue will go to the taxing bodies and that amount will continue to increase
each year.
Opportunity Dubuque: Opportunity Dubuque is a unique, collaborative job-training
effort developed in response to local employers' needs for a skilled workforce. Through
this initiative, the unemployed and under-employed are able to complete a short-term
certification program to upgrade their skills. This program creates career pathways
where students earn industry-recognized credentials and certificates that lead to
employment or ladder into a degree or diploma program and ultimately fills employers'
demand for talent in high-wage, high-demand careers.
Opportunity Dubuque is designed to assist the unemployed and underemployed, high
school students interested in hands-on learning, dislocated workers who need to brush
up on news skills to become more marketable, and referrals from local community
groups and non-profits. To date, 675 Individuals have attended orientation; 377 have
applied for the program, been assessed, and interviewed; 297 students accepted and
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placed into the program to date, 250 graduated (167 in advanced manufacturing and 87
in information technology) and 22 still in training (92% graduated or in training), 237
(97%) are employed or continuing education. Twenty-four local employers are
participating.
Family Self-Sufficiency (FSS) Program: FSS is a U.S. Housing and Urban
Development (HUD) program for Housing Choice Voucher (Section 8) Program
participants. The program encourages communities to develop local strategies to help
participants obtain employment that will lead to economic independence and self-
sufficiency. Since 1997, 89 people have graduated from Dubuque's FSS program. The
program has tripled in size and now serves 128 families. Ninety-one percent of the
graduates are off Dubuque's housing assistance program. Graduates increased their
annual income by 293% and their earned annual income by 899% while completing the
program.
Circles Initiative: The Circles Initiative is part of an innovative national movement that
connects volunteers and community leaders to families wanting to make the journey out
of poverty. There are barriers that keep even the most motivated from achieving
prosperity. Circles breaks down these barriers by expanding opportunity and support for
families as they create their own paths to stability. Eighteen months after graduating
from the Circles program, 71 % of graduates are employed and 57% are enrolled in an
education program.
Goal: Environmental Integrity
Preserve Dubuque's natural and historic resources by creating a more livable
community with abundant opportunities for a healthy lifestyle through healthy living
environments (homes, neighborhoods and community), clean air and water and the use
of alternative energy sources.
The desired outcomes of this goal for residents and businesses include:
• Protecting the natural and historic resources and environment of Dubuque
• City government using sustainable practice in daily operations
• Healthy living environments: homes, neighborhoods and community
• Clean water and air
• Creating a more livable community
• Opportunity for a healthy lifestyle including local food products
Water & Resource Recovery Center: The $70 million upgrade of Dubuque's Water &
Resource Recovery Center was completed in late 2013, the result of the largest capital
improvement project in the City's history at that time. The facility now utilizes anaerobic
digestion to manage bio-solids, eliminating incineration of solids from the treatment
process. The innovative design, construction, and management of this facility are
expected to cut heating and cooling usage by up to 30 percent, reduce electrical
demands by 75 percent, and improve the quality of treated water released back into the
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environment. Additionally, the new treatment process produces a beneficial by-product,
fertilizer for farm fields.
Historic Preservation: Historic Preservation is a critical component of what makes
Dubuque a great place to live, work, and play and it is said that the most sustainable
building is the one that is already built. The City's Planning Services Department
coordinates a variety of incentive programs to encourage revitalization and maintenance
of historic structures, and utilizes regulations to maintain the character of our great
Historic Neighborhoods. Over $63 million in State Historic Tax Credits has been
reserved to assist in the rehabilitation of 45 historic properties in Dubuque. Over 5,000
Dubuque properties have been surveyed for historical significance and over 2,000
properties are protected from demolition. Dubuque has 13 National Register Districts,
44 individually listed National Register of Historic Places (NRNP) properties, and two
National Historic landmarks. Work is currently underway to nominate Eagle Point Park
and St. Mary's Church to the National Register of Historic Places. In FY2014, the City
facilitated investment in historic properties through 55 Section 106 NRHP evaluations,
18 staff design reviews, three fagade grant reviews, six Historic Preservation
Commission design reviews, and six Historic Preservation Commission demolition
reviews.
Parks & Plantings: The Park Division maintains 15 community parks comprising 875
acres, six neighborhood parks covering 43 acres, 27 mini-parks comprising 43 acres,
the 2-acre Pet Park, three new parcels for park development, over three miles of
median strips, 19 tennis courts, three ice rinks, 12 miles of roadway, and 30 miles of
trails and sidewalks. Staff also maintain 25 park shelters, 21 restrooms, and other small
buildings as well as repair and maintain 285 units of playground equipment,
approximately 1 ,000 picnic tables and many other park amenities. The Park Division
also grows 80,000 annual flowers from seed in its own greenhouse that are planted in
the park system and on City property. Additionally, over 412 hanging flowering baskets
are grown for display throughout the year.
Natural Areas: Native and natural areas promote a healthy environment while
decreasing maintenance costs of these areas. The Park Division currently maintains
27.5 acres of natural area and 14.5 more acres are expected to be incorporated in
2015.
Greenhouse Gas Emissions: Dubuque's 50% by 2030 Community Climate Action and
Resiliency Plan is a non-binding, voluntary effort to identify opportunities to reduce
Dubuque's community greenhouse gas emissions 50 percent below 2003 levels by
2030. Initiatives that reduce greenhouse gas emissions benefit Dubuque by invigorating
the local economy; lowering energy consumption and utility bills; creating safer and
more efficient transportation networks; improving air and water quality; improving waste
management; and improving health and safety. From 2003 to 2011 , the community
reduced emissions by five percent.
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Lead-Hazard Control: Dubuque's Lead Hazard Control Program provides community
education on lead poisoning and utilizes funds to provide financial assistance to low-
and moderate-income homeowners and rental property owners to reduce lead-based
paint hazards in homes with young children. Of children tested nationally, the average
for positive tests is 0.62%. For comparison, 4.7% of Dubuque children tested in the
2000 birth-year cohort tested positive for lead. The 2006 birth-year cohort was reduced
to 1 %.
Bee Branch Watershed Flood Mitigation Project: The Bee Branch Watershed Flood
Mitigation Project is a multi-phased investment to mitigate flooding, improve water
quality, stimulate investment, and enhance quality of life within the Bee Branch
Watershed. This project consists of several infrastructure improvements that will reduce
the volume of stormwater, slow the rate of stormwater, and safely move stormwater
through the flood-prone area. This will save 1 ,373 homes and businesses from
flooding. There have been six Presidential Disaster Declarations since 1999.
As part of the project, the City will convert all 240 alleys in the Bee Branch Watershed to
"green alleys," which feature permeable concrete pavers. These specially designed
pavers allow water to pass through the surface and filter into the soil below. The green
alleys are expected to reduce the amount of stormwater runoff in the watershed by up to
80 percent and prevent flooding. In addition to reducing stormwater run-off, the green
alleys will replenish ground water and help prevent pollutants on roadways from running
off into the storm sewer system, and ultimately, the Mississippi River. Twenty-three alley
conversions were completed in 2014, with 53 planned for 2015.
Calendar year 2015 will see construction beginning on the remaining phase of the
restoration of the Bee Branch Creek, a major component of the Bee Branch Watershed
Flood Mitigation Project. This will increase the debt burden of the City. The City is
receiving over $127 million in federal and state grants for this $200 million project. The
$98.5 million state flood mitigation grant is provided to the City over 20 years, which will
require debt to access the funds in a timely manner.
Goal: Social/Cultural Vibrancy
Promote mutual understanding, knowledge, and acceptance of others to become an
inclusive community in which all feel welcome and included. Residents are involved in
their neighborhoods and have numerous opportunities to experience arts and culture.
Public health provides equitable and fair services focusing on prevention and wellness.
Positive cultural values foster respectful relations between diverse cultures and races.
Desired outcomes of this goal for residents and businesses include:
• Everyone is welcome in the Dubuque community
• Living life without fear or threats
• Equal treatment for all by City staff
• City services are available for all and delivered in an equitable and fair manner
• City workforce reflecting the diversity of the community
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• Opportunities to experience arts and culture
Arts & Culture: Arts and culture nonprofits are a $47.2 million industry in the city of
Dubuque, supporting 1 ,530 full-time equivalent jobs and generating $5 million in local
and state government revenue. 1 .2 million people annually attend arts and cultural
events in Dubuque. Nonprofit arts and culture organizations, which spend $17.6 million
annually, leverage $29.6 million in additional spending by arts and culture audiences—
spending that pumps vital revenue into local restaurants, hotels, retail stores, and other
businesses. Investing in arts and culture is investing in an industry that supports jobs,
generates public and private revenue, is a cornerstone of tourism, enhances our quality
of life, and provides an excellent return on investment. Since 2005, the City has
awarded over $2.4 million to area arts and culture organizations and other non-profits
for programs that reach thousands of Dubuque adults and children each year. These
funds have leveraged nearly $1 million in additional community support for arts and
culture events and programs.
Multicultural Family Center: The Multicultural Family Center (MFC) offers over 30
programs (totaling over 100 hours) per month. The MFC has an independent not-for-
profit board of directors and partners with over 75 local organizations to welcome new
residents to Dubuque and offer events to educate the public and connect people of
many cultures. Over 100 community meetings are held at the MFC annually and center
usage increased 25% in 2014 averaging 725 per month. More than 1 ,000 people
attended the MFC's 2014 Taste of the World event. Events like Flavors of India, Cinco
de Mayo, Juneteenth, Marshallese Constitution Day, and Dia de los Muertos were
attended by a total of 1 ,100 people in 2014. Nearly 190 families in need of technology
received fully functioning computer systems through an MFC program to bridge the
"digital divide." The MFC's Road to success program has provided 55 teens with useful
employment skills including resume building, interviewing, dressing for success, and
leadership development. Road to Success is led by professionals from different
businesses and is a collaboration with the Black Men Coalition.
With a three-year commitment for a $31 ,000 a year financial contribution from the
Multicultural Family Center Board of Directors, I am recommending that the part-time
MFC Assistant Director position become a full-time position.
Crescent Community Health Center: Crescent Community Health Center (CCHC) is
a medical and dental clinic providing basic (primary) medical and oral health care to
individuals and families who are uninsured, underinsured, and those with various types
of insurance. The CCHC has served 6,377 patients (including over 1 ,500 children); half
of these patients are from the 52001 ZIP code which includes all of the Washington and
North End neighborhoods. Sixty-four percent have incomes at or below 100 percent of
the federal poverty level.
Recreation Programming: The number of programs offered annually by the City's
Recreation Division increased 19% from 2012-2014 to reach almost 850 in 2014.
During that same time frame, the number of participants increased 24%, reaching
almost 10,000 in 2014. These programs include community-wide activities and sports
35
for adults and children, swimming, neighborhood recreation programs, and therapeutic
recreation for special populations. The division partners with a variety of local
organizations and venues to co-sponsor activities when possible and provide facilities
when feasible.
During the summer of 2014, the Leisure Services Department's Free Playground
Programs at Lincoln, Marshall, and Prescott Schools, and Comiskey Park offered a new
traveling reading program. Developed in partnership with local AmeriCorps staff, this
program utilized eight Sony E-readers (mobile electronic devices designed for the
reading digital "e-books") and a curriculum that encouraged participants to read several
books throughout the summer while participating in the playground program. Fifty
children between the ages of seven and 12 participated in the program which helped
them retain or improve their reading skills while introducing them to technology to which
they may not have had access.
Inclusive Dubuque: Inclusive Dubuque is a local network of community leaders from
faith, labor, education and government dedicated to advancing justice and social equity
in our community, with the Community Foundation of Greater Dubuque providing the
support systems and organizational backbone. The network organizes people, identifies
issues and takes action to challenge and change social and economic structures. This
work will help ensure a growing economy, a skilled workforce and opportunities for all
people to thrive in Dubuque. The City of Dubuque is one of 36 mission partners
committed to Inclusive Dubuque's model to build a movement to bring about change
through cross-sector collaboration. During its first year, Inclusive Dubuque grew in
number of mission partners from 22 to 36 and connected with dozens of community
partners. Thirty-seven Idea Exchanges were facilitated engaging over 425 people, 22
events were supported, and the initiative's website and social media presence were
launched. An Equity Profile will be produced in 2015 to provide data for a future course
of action. It will focus on seven areas: economic well-being, housing, safe
neighborhoods, health, education, transportation and arts/culture. It will also highlight
demographic information about our community. Inclusive Dubuque will collect data,
ideas from community members, and perceptions from specialists in each focus area.
Beginning in February 2015, Inclusive Dubuque will host monthly community dialogues
to gain input, opinions and possible solutions from community members.
The City had committed $75,000 a year for this effort and with the 10% purchase of
service cuts this will be reduced to $67,500.
Goal: Financially Responsible City Government and High-
Performance Organization
City government is ethical, transparent, and responsive to its residents and changing
community and needs. The public is safe and secure and the community is prepared to
respond to emergencies, natural disasters, catastrophic acts, and other events that
threaten the health and safety of the public. Financial assets are maximized, protected,
analyzed, and reported accurately, and are understandable and useful.
Desired outcomes of this goal for residents and businesses include:
36
• Customers can conveniently access city services, official public records, and
other information.
• Residents, businesses, and public safety agencies work together for a safe
community.
• The work environment for employees is healthy, safe, and productive.
• The City maintains fiscal integrity and accountability and provides support for
effective decision making.
Fiscal Benchmarks: For FY2015, when compared to the nine other Iowa cities with
populations over 50,000, Dubuque has the lowest property tax rate per capita, the
second lowest city portion of property tax rate, second lowest water rate, fifth lowest
trash/refuse rate, fifth lowest sanitary sewer rate, and second highest stormwater rate.
Strategic Use of Debt: The City of Dubuque uses debt to accomplish the important
infrastructure and economic development projects that must be done. Deferred
infrastructure projects become more expensive overtime because of continued
deterioration and inflation. This low-interest rate environment is the perfect time to issue
debt. The City does NOT use debt for operating expenses and, by state law, must have
a balanced budget. The City uses debt to finance major projects much like a
homeowner uses a home mortgage. Beginning in FY 2016, the amount of the City's
outstanding debt will begin to decrease. The recommended budget calls for it to drop
from 87% of the city's statutory debt limit in FY2016 to 62% in FY2025. It should also
be noted that most of the City's outstanding debt is not paid with property taxes (except
Tax Increment Financing), but is abated from other revenues, like water, sewer, and
stormwater fees.
Renegotiated Riverfront Leases: Annual lease payments on City-owned riverfront
property increased from $526,018 in FY2012 to $1 ,956,303 in FY2015, a 272%
increase and increase of$1 ,430,285 to the General Fund over four years. Four
riverfront leases have been renegotiated with three remaining to be renegotiated.
FY2016 General Fund Expenditures: The General Fund is the City's primary
operating fund. It accounts for all financial resources of the general government, except
enterprise funds (parking, refuse/trash, sewer, stormwater, and water.)
• 44% = PUBLIC SAFETY (animal control, building inspections, crime prevention,
emergency management, flood control, fire, police)
• 18% = CULTURE & RECREATION (AmeriCorps, arts and cultural affairs, civic
center, conference center, library, marina, parks, recreation)
• 11% = GENERAL GOVERNMENT (city attorney and legal services, city clerk,
city council, city hall and general buildings, city manager, finance, information
services)
• 11% = PUBLIC WORKS (airport, maintenance of streets, bridges, and sidewalks;
snow removal, street cleaning, street lighting, traffic control)
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• 6% = COMMUNITY & ECONOMIC DEVELOPMENT (economic development,
housing and community development, neighborhood development, planning and
zoning)
• 4% = TRANSFERS OUT (to funds other than General Fund)
• 2% = CAPITAL PROJECTS
• 2% = HEALTH & SOCIAL SERVICES (community health, health regulation and
inspection, human rights)
• 1 % = DEBT SERVICE government capital projects, tax-increment financing (TIF)
capital projects
Decreasing Crime Rates: When comparing part 1 crimes from calendar years (CY)
2002 through 2013, crime rates in Dubuque are decreasing. For crimes against
persons, CY2013's number of 108 represents a 6.9% decrease from the CY2002-2013
average and a 27.5% decrease from the peak of 149 in CY2007. When reviewing
crimes against property, CY2013's number of 1 ,791 is a 13.4% decrease from the
average of CY2002-2013 and a 23% decrease from CY2007's count of
Crime Clearance Rates: The Dubuque Police Department's clearance rate for crimes
against persons was 76% (avg. FY2008-FY2013) while the national clearance rate for
2012 was 47%. Dubuque's clearance rate for crimes against property for 26% (avg.
FY2008-FY2013) while the national clearance rate was 19% for 2012.
Emergency Communications: Ninety-six percent of all 911 calls to the Dubuque
County 911 Center are answered in 10 seconds or less compared to the national
average is 90%. Shorter response times for dispatch result in faster response times for
agencies involved and quicker requested services for residents.
Cardiac Arrest Survival Rate: The cardiac arrest survival rate in Dubuque is twice the
national average. From FY 2011-2013, the average two-week survival rate for out-of-
hospital cardiac arrest 911 service calls in Dubuque is 13.7%. According to the
American Heart Association, less than eight percent of people who suffer cardiac arrest
outside the hospital survive.
Safety & Security: In 2014, the Home Security Shield published a list of the 13 most
dangerous cities in Iowa. Dubuque, the ninth-largest city in Iowa, did not make that list.
The list, which did include four of the state's 10 largest cities, ranked cities with
populations over 5,000 according to their violent crime rate. In 2013, Farmers
Insurance ranked Dubuque the 10th ,Most Secure Small City" in the U.S. In 2011 , Iowa
was ranked the ninth most-peaceful state in the nation in the Global Peace Index
compiled by the Institute for Economics and Peace.
The following table and graphs provide additional context:
38
"Part I"Crimes for Calendar Years 2002-2014
Compiled by the Dubuque Police Department
CY14% CY14%
Over/Under Over/Under
Performance Measures CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 Avg. Average Peak Year
No.of Crimes Against Persons 117 109 95 118 121 149 122 118 99 124 107 108 137 117 16.9% -8.05%
Murder 1 1 1 1 0 1 0 2 1 1 2 0 0 1 -100.0% -200.0%
Sexual Assault 65 52 41 48 61 72 54 43 38 43 43 38 61 51 20.3% -15.3%
Robbery 13 20 12 14 19 40 31 35 36 33 21 32 20 25 -20.2% -50.0%
Aggravated Assault38 36 41 55 41 36 37 38 24 47 41 38 56 41 37.9% 0.0%
No.of Crimes Against Property 2137 20801 2,119 1,9961 2,084 2,3271 2,284 2,0671 2,038 1,9131 1,992 1,7911 1,662 2,038 -22.6% -28.6%
Burglary 454 422 464 437 501 669 526 519 503 455 583 431 416 491 -15.2% -37.8%
Burglary to Motor Vehicle 308 389 389 276 370 366 510 420 399 406 298 231 168 348 -51.8% -54.1%
Theft 1264 1185 1,176 1,239 1,151 1,229 1,185 1,072 1,102 1,020 1,080 1,103 1,035 1,142 -9.3% -15.8%
Theft of Motor Vehicle 111 84 90 44 62 63 63 56 34 32 31 26 43 57 -24.4% -31.7%
Total 2254 2189 2,214 2,114 2,205 2,476 2,406 2,185 2,137 2,037 2,099 1,899 1,799 2,155 16.5% 27.3%
*Aggravated Assaults:Calendar year CY10 incorporated a correction in the method for reporting Aggravated Assaults to the Uniform Crime Reports(UCR)to comply with the Federal UCR rules.The former reporting method would have shown 53 aggravated
assaults.The 29 assault difference was due to a reclassified of simple assaults.Correction of this error was not done for the years prior to 2010,so the totals for CY02 to CY09 are overstated.
**Aggravated Assaults:Beginning in July 2012,Iowa State Code changes and additions necessitated a reclassification of certain types of assualts.The changes would have added 79 additional Aggravated Assaults in 2012,100 in 2013(the first full year with the
code changes)and 83 Aggravated Assaults in CY14.In order to use consistent values across the chart,the same codes were examined in all years.
0 High Year
2009-2011 Average Uniform Crime Report(UCR) Part I Crimes: Rates per 10,000 Population
900
800 770
700
600 - 545 537
500 430 418
400
308
300
200
100
0
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10 largest cities in Iowa with a population greater than 50,000 people 2009-2011.Above is based on the three year average of
population and 3 year average of Part 1 Crimes according to the FBI's Uniform Crime Reports(UCR)for calendar years 2009-2011
Falling Oil and Natural Gas Prices
Natural gas, motor vehicle fuel and diesel fuel are all budgeted to decrease 20% from
Fiscal Year 2014 actual. The natural gas reduction is a savings of $22,623 as compared
to FY 2015 budget; motor vehicle fuel reduction is a savings of $29,541 as compared to
FY 2015 budget and diesel fuel reduction is a savings of $65,143 as compared to FY
2015 budget.
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Health Insurance Reserve
The City Council approved a one-time General Fund operating reserve of one million
dollars in FY 2010, FY 2011 , FY 2012 and FY 2013 and $500,000 in FY 2014 for health
insurance claims exceeding expectations and the possibility of needing to boost the
health insurance reserve. In FY 2011 , $475,000 was transferred from the General Fund
to the Health Insurance reserve due to higher claims than expected. In FY 2012,
$1 ,000,000 was transferred from the General Fund to the Health Insurance reserve due
to higher claims than expected. Departments' health insurance contribution was
increased from $835 per month per contract to $1 ,105 per month per contract mid-year
in March 2013 which used $500,000 of the one million dollar reserve. In January 2014,
departments' health insurance contribution was increased mid-year again from $1 ,015
per month per contract to $1 ,500 per month per contract which used the remaining
$500,000 of the one million dollar reserve. The increases in the contribution to the
health insurance reserve have made it possible to maintain a health insurance reserve
balance well above the minimum reserve requirement as determined by an independent
actuary. It is projected that the health insurance reserve balance as of June 30, 2015
will be $2,904,143 and the estimated minimum reserve is $1 ,245,425.
Five-Year History of the Health Insurance Reserves:
FY 2014 $1 ,841 ,383
FY 2013 $1 ,070,026
FY 2012 $2,113,323
FY 2011 $1 ,018,643
FY 2010 $2,175,653
Mid-Year Budget Reductions
There were mid-budget year reductions of$2.9 million in FY14 and there will be mid-
budget year reductions recommended for FY15.
Conclusion
I want to thank the citizens and businesses of Dubuque for deciding that they prefer the
price of progress over the higher price of stagnation and decline. None of the progress
this community is experiencing would be possible without the citizens' determination,
the business investment, the leadership of Mayor Roy Buol and the City Council, the
tremendously talented City employees, and the robust partnerships with local not-for-
profits and different levels of government.
I want to thank Budget Director Jennifer Larson, Assistant City Manager Cindy
Steinhauser, Senior Budget Analyst Mary Brooks, Public Information Officer Randy
Gehl, Office Manager Juanita Hilkin, Secretary Stephanie Valentine, and
Communications Assistant Natalie Riniker, for all their hard work and dedication in
preparation of this budget recommendation.
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I look forward to City Council questions and input as you review this budget
recommendation and then this will be implemented according to your final decisions and
direction.
� Cts 't tf 1AA^-
Miclfael C. Van Milligen
MCVM:sv
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