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FY2018 Recommended Budget Transmittal Message Copyright 2014 City of Dubuque Action Items # 7. ITEM TITLE: Presentation of FY2018 Budget Recommendation SUMMARY: City Manager submitting the Fiscal Year 2018 Recommended Budget Transmittal Message. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type FY18 City Manager Budget Transmittal Message City Manager Memo CIP Transmittal Message Supporting Documentation THE CITY OF Dubuque DUB E 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 2018 Budget Recommendation DATE: February 2, 2017 The goal of the Fiscal Year 2018 budget recommendation is to maintain the momentum of our community. The budget has been built around the vision, mission, goals, priorities and direction provided by the Mayor and City Council at the August 2016 goal setting session, with input from the community. A series of six public hearings will now be held by the Mayor and City Council before adopting a final budget on March 7, 2017. The Fiscal Year 2018 budget year begins on July 1, 2017. The strategic investments that have been made by the Mayor and City Council in infrastructure and economic development initiatives are creating the intended results. As quoted previously several years ago, in addressing public policies, an independent source, Stephen Goldsmith, who is a professor of government at the Harvard Kennedy School stated, "If there is one place where public officials should consider taking on more debt, it is in an area crucial to the country's economic health, addressing deteriorating infrastructure -- roads, bridges, water systems and the like." "Now," he said, "is the time public officials should look at repairing their infrastructure. Historically low interest rates provide an opportunity to inject necessary capital much more affordably. Much of our infrastructure that is most in need of repair is deteriorating at a rate that far exceeds current interest rates." Not repairing or replacing a water plant for another four years would likely incur an annual cost three times higher than borrowing would, taking into account the rate of deterioration as well as the increasing cost of materials. He concluded that, "Officials who starve their capital budgets to help get past the bad times are really engaging in another form of accumulating deficits. Importantly, the strategic use of alternate financing structures, revenue sources, and public-private partnerships amount to a prudent investment." While in August 2015 the Mayor and City Council directed staff to start reducing the amount of City debt, previous investments are still paying dividends. With the current City strategy of more pay as you go investments and the acceptance that some debt will be issued each year, with a goal to retire more debt each year than is issued, the City will continue to be able to leverage past investment and create new opportunities to improve quality of life for residents, create jobs and maintain infrastructure. While accomplishing the Mayor and City Council priorities, the goal is to minimize the costs for the residents and businesses. Property Taxes The Fiscal Year 2018 budget recommendation is for no property tax increase for the average Dubuque homeowner and a property tax decrease for commercial (- 2.47%), industrial (-2.47%) and multi-residential (-6.71%) properties. The Fiscal Year 2018 recommended City property tax rate of 10.8922 per thousand is a 2.47% decrease from Fiscal Year 2017. The average homeowner would see no change in their property tax payment for the City portion of their property tax bill. The average commercial property would see an $83.02 decrease, the average industrial property a $124.43 decrease, and the average multi-residential property a $144.91 decrease. City Property Tax Rate Comparison for Eleven Largest Iowa Cities Rank City Tax Rate 11 Council Bluffs $17.75 10 Des Moines' $17.66 9 Waterloo $17.57 8 Davenport $16.78 7 Iowa City $16.55 6 Sioux City $16.11 5 Cedar Rapids $15.22 4 West Des Moines $12.76 3 Ankeny $12.37 2 Dubuque (FY 2018) $10.89 1 Ames $10.37 AVERAGE w/o Dubuque $15.31 Dubuque is the SECOND LOWEST in the state for property tax rate. The highest ranked city (Council Bluffs) is 62.96% higher than Dubuque's rate, and the average is 40.60% higher than Dubuque. 2 Comparison for Eleven Largest Iowa Cities Property Taxes per Capita Rank City Taxes Per Capita 11 Wes Des Moines $1 ,010 10 Iowa Cit $844 9 Cedar Rapids $768 8 Council Bluffs $733 7 Davenport $693 6 Ankeny $687 5 Des Moines $605 4 Waterloo $589 3 Sioux Cit $486 2 Ames $475 1 Dubuque (FY2018) $448 AVERAGE w/o $689 Dubuque Dubuque has the LOWEST taxes per capita in the state. The highest ranked city (West Des Moines) is 125% higher than Dubuque's taxes per capita, and the average is 54% higher than Dubuque. The projected Fiscal Year 2018 property tax asking of$25,863,041 is a $513,178 (1 .95%) decrease from Fiscal Year 2017. With reductions in both the operating and capital budget, the total Fiscal Year 2018 budget recommendation ($169,635,288) is 8.38% less than the current budget year (Fiscal Year 2017). The Fiscal Year 2018 operating budget recommendation is $129,366,969 and the Fiscal Year 2018 Capital Improvement Program budget recommendation is $40,268,319. After the local option sales tax was passed by referendum in 1988 with 50% of revenue going to property tax relief, the average property tax classification has seen the following results: 3 Prior to Sales Tax 2018 Difference 1988 Property Tax Rate $14.5819 $10.8922 -$3.6897 -25.3% Average Residential Payment $512.38 $755.70 +$243.32 (+47.5%) Average Commercial Payment $2,490.61 $3,281.59 +$790.98 +31.7% Average Industrial Property $6,975.00 $4,918.93 -$2,056.07(-29.5%) Average Multi-Residential $2,472.99 (FY2015) $2,015.48 -$457.51 (-18.5%) Property Position Eliminations and Frozen Positions The Fiscal Year 2018 budget recommendation includes the elimination of 6.85 full-time equivalent (FTE) positions: FY 2017 Savings (Including Department Position Type Benefits) FTE Building Building Inspector II Part-Time $66,112 0.75 Engineering Limited Term Engineering Tech Full-Time $75,126 0.94 Engineering Environmental Engineer Full-Time $125,359 1 .00 Engineering I&I Inspectors Full-Time $146,953 2.00 Engineering Enaineerina Aide NA Seasonal $58,584 1 .50 Engineering Enclineerinq Assistant Seasonal $25,808 0.50 W&RRC Lab Intern Seasonal $4,974 0.16 Total FY 2018 Recurring Savings $502,916 6.85 The net change in number of employees in Fiscal Year 2018 with the addition of some staff, mostly to maintain the new Bee Branch Creek area, is -4.87 FTE. This follows the current budget year (Fiscal Year 2017) recommendation that eliminated 2.75 FTE positions: FY 2017 Savings (Including Department Position Type Benefits) FTE Parks Park Ranger Full-Time $76,249 1 .00 Parks Custodian Part-Time $4,696 0.10 Recreation Custodian Part-Time $4,696 0.10 Parking Parking Meter Service Worker Full-Time $71 ,104 1 .00 Parking Laborer Part-Time $37,331 0.50 Parking I Ramp Cashier I Part-Time 1 $1 ,8441 0.05 Total FY 2017 Recurring Savin s $195,920 2.75 4 Over a two-year period (Fiscal Year 2017 and Fiscal Year 2018) the City will have eliminated 9.60 FTE positions. The hiring freeze has been extended through June 30, 2018 for a total of 13.6 full- time equivalent frozen positions. The frozen positions are being further evaluated to determine if they should be reinstated as part-time positions, full-time positions, or supplemented with contracted services. Several positions are being added to the list of frozen position including Building Inspector II, Community Engagement Coordinator, TrainingM/orkforce Development Coordinator, Parking Division Manager, Water Plant Manager and Assistant Water & Resource Recovery Manager. The positions frozen until June 30, 2018, are as follows: FY 2018 Savings (Including Department Position Type Benefits) FTE Building Inspector II Full-Time $87,131 1 .00 Human Rights Community Engagement Full-Time $83,365 1 .00 Coordinator Human Rights TrainingM/orkforce Full-Time $83,365 1 .00 Development Park Assistant Horticulturalist Full-Time $70,606 1 .00 Park/Public Works Assistant Horticulturalist Full-Time $70,606 1 .00 Park Maintenance Worker Full-Time $71 ,993 1 .00 City Manager's Office Management Intern Part-Time $40,327 0.60 City Manager's Office Secreta Full-Time $59,927 1 .00 Information Services Help Desk Technical Support Full-Time $64,834 1 .00 Engineering Traffic Engineering Assistant Full-Time $83,366 1 .00 Parking Division Parking Division Manager Full-Time $95,232 1 .00 Police Records Clerk Full-Time $60,820 1 .00 Water Water Plant Manager Full-Time $125,359 1 .00 Water & Resource Assistant Water & Resource Full-Time $89,112 1 .00 Recovery Recovery Total Fiscal Year 2018 $1,088,192 13.60 Savings 5 Debt While the City will be issuing $3,253,487 in new debt in the recommended 5-year CIP, mostly for fire truck and pumper replacements, the City will also be retiring $87,845,970 of existing debt, reducing the amount of City debt by $54,927,964. Outstanding General Obligation (G.O.) debt on June 30, 2018 is projected to be $134,915,711 (64.54% of the statutory debt limit) leaving an available debt capacity of $74,132,996 (35.46%). In Fiscal Year 2016 the City was at 86.13% of statutory debt limit, so 64.54% in Fiscal Year 2018 is a 21.59% decrease in use of the statutory debt limit. The City also has debt that is not subject to the statutory debt limit. This debt includes revenue bonds. Outstanding revenue bonds payable by water, sewer, parking and stormwater fees on June 30, 2018 will have a balance of$146,217,907. The total City indebtedness as of June 30, 2018, is projected to be $281 ,133,618 (64.54% of statutory debt limit). The total City indebtedness as of June 30, 2016, was $295,477,641 (86.13% of statutory debt limit). The City will have a projected $14,344,023 less in debt as of June 30, 2018. The combination of reduced debt and increased utility rates partially reflects the movement to a more pay as you go strategy. In August 2015, the Mayor and City Council adopted a debt reduction strategy which targeted retiring more debt each year than was issued by the City. This recommendation achieves that target throughout the 5-year CIP. However, the recommendation will substantially beat overall debt reduction targets over the next five and ten year periods. You can see that the Mayor and City Council have significantly impacted the City's use of the statutory debt limit established by the State of Iowa. In Fiscal Year 2015, the City of Dubuque used 90% of the statutory debt limit. In this budget recommendation, the Mayor and City Council are currently reviewing for Fiscal Year 2018, the use of the statutory debt limit would be 65%, and by the end of the recommended 5-Year Capital Improvement Program (CIP) budget in Fiscal Year 2022, the City of Dubuque would be at 43% of the statutory debt limit. Projections out 10 years to Fiscal Year 2027 show the City of Dubuque at 24% of the statutory debt limit. This is an improvement on the debt reduction plan adopted in August 2015, that first began implementation in Fiscal Year 2016. 6 Statutory Debt Limit Used This chart shows the percentage of statutory debt limit used in the Fiscal Year(FY)2018 recommended budget as compared to the adopted FY2016 budget. By FY 2027,the City will be 100% at 24% of the statuory debt limit. 90% 90% 0% 87% 82% 80% 86% 0 9% 79/o 4% 70% 71% 72% 0% 66% 0 60% 65% 66% 66/o 58% 50% 53% 47% 40% 43% 39% 30% 35% 0 31 /0 27% 20% - T- 24% FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 --4---FY18 Recommended —d,FY16 Adopted 7 The following chart demonstrates that the relative position pertaining to use of the statutory debt limit of the City of Dubuque for Fiscal Year 2018 to the other cities in Iowa for Fiscal Year 2017 with a population over 50,000 has moved to 5t" highest on the list, which is an improvement from 2nd highest just two years ago: Legal Debt Limit Comparison for Eleven Largest Iowa Cities Amount of Debt Percentage of Against 5% Legal legal debt limit Rank City Debt Limit utilized 11 Des Moines 536,568,585 73.67% 10 Davenport 31874017799 69.34% 9 Sioux City 19678227505 66.92% 8 Ankeny 20773197915 64.79% 7 Dubuque (FY18) 20990489707 64.54% 6 Cedar Rapids 49078177852 59.30% 5 Waterloo 185,009,345 54.11% 4 Ames 18976907116 36.28% 3 W. Des Moines 32074617851 35.60% 2 Iowa City 24775277890 23.38% 1 Council Bluffs 22979437028 19.18% The total amount of debt for the City of Dubuque by the end of the recommended 5-Year Capital Improvement Program (CIP) budget would be $227.4 million (43% of the statutory debt limit) and the projection is to be at $145.5 million (24% of statutory debt limit) within 10 years. Total Debt , $320 tin Millions) 309.1 o $302.3 $300 295.6 $295.5 $ 82.0 $279.9 $280 $290.1 $281.1 $267.4 " "�<$260 $257.2 255.9 $244.3 $241.4 $240 $226.2 $220 $227.4 $200 $212.1 $196.2 $180 $180.1 $160 $145. $140 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 fFY18Recommended �FY16Adopted 8 Moody's Investor Service recommends 20% General Fund Operating Reserve for "AA" rated cities. In May 2015, Moody's Investors Service downgraded Dubuque's general obligation bond rating from Aa2 to Aa3, but removed the negative future outlook. This followed two bond rating upgrades in 2003 and 2010, and one bond rating downgrade in 2014. In announcing the bond rating downgrade, Moody's noted the City's general fund balance/reserve declines. Dubuque's general fund reserve declined from 24 percent of general fund revenues in Fiscal Year 2013 to 17.05 percent in Fiscal Year 2014. This decline in the general fund reserve was due to planned capital expenditures of$4.1 million in Fiscal Year 2014. The City of Dubuque has historically adopted a general fund reserve policy as part of the Fiscal and Budget Policy Guidelines which is adopted each year as part of the budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve Policy. The City may continue to add to the General Fund minimum balance of 10% when additional funds are available until 20% of Net General Fund Operating Cost is reached. The planned contribution to reserves in Fiscal Year 2016 was $600,000, but the City was able to contribute $1 million. After all planned expenditures and an additional $600,000 added to fund balance in Fiscal Year 2017, the City of Dubuque will have a general fund reserve of 15.79% of general fund expenses as computed by the methodology adopted in the City's general fund reserve policy or 16.75% of general fund revenues as computed by the methodology used by Moody's Investors Service. The general fund reserve fund balance is projected to be $7,832,449 on June 30, 2017. The intent is to increase the General Fund working balance or operating reserve by a minimum of$600,000 in Fiscal Year 2018. In subsequent years, the City will add to the operating reserve until 20% is maintained consistently. In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve level in Fiscal Year 2022. Now it is projected this 20% level will be reached in Fiscal Year 2021 , one year ahead of schedule. The Fiscal Year 2018 budget recommendation anticipates the following contribution to the general fund reserve after the $1 million contribution in Fiscal Year 2016 and the $600,000 contribution in Fiscal Year 2017: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total Contribution $1,000,000 $600,000 $600,000 $500,000 $500,000 $500,000 $100,000 $3,800,000 General Fund $7,232,449 $7,832,449 $8,432,449 $8,932,449 $9,432,449 $9,932,449 $10,032,449 Reserve % of 20.31% 16.75% 17.71% 18.50% 19.28% 20.05% 20.15% - Projected Revenue (Moody's) Dubuque Initiatives was very helpful this year related to the City debt obligations. Because of the tremendous success Dubuque Initiatives has had with leasing space in 9 the Roshek Building, they have been able to relieve the City of some debt obligations. In order to obtain financing for the $47.5 million renovation of the Roshek Building in 2009 the City provided a $25 million loan guarantee. Also, in order to attract the IBM Global Services Delivery Center and to help finance the renovation, the City provided property tax rebates through Tax Increment Financing. Over the years the loan guarantee had decreased to $7.5 million as Dubuque Initiatives retired debt. This year the loan guarantee would have decreased to about $5.5 million. However, Dubuque Initiatives has refinanced the debt using the substantial value of the renovated Roshek Building as collateral and the City Loan guarantee has been released. In addition, Dubuque Initiatives has signed a non-appropriation clause on the City's obligation to provide annual TIF property tax rebates. This means that instead of the entire remaining schedule of annual TIF rebates estimated at $3,556,800 applying against the statutory debt limit, only the annual rebate payment ($273,600) applies against the statutory debt limit. This is the way all new TIF rebate agreements are approved. One important point worth mentioning related to debt involves the purchase of the Central Iowa Water Association (CIWA) assets and the subsequent capital project that will extend City of Dubuque water service to these newly acquired 316 customers, opening up thousands of acres for future development. The original intent and the approved strategy was to issue $10.7 million in low interest debt through the State of Iowa Revolving Loan Fund (SRF) program. Combining this need with the anticipated operating and capital needs of the Water Department, it was projected there would be a 12.5% reduction from previous rate increase projections over the next six years. I am pleased to report to you that this 5-Year Capital Improvement Program recommendation does better than the original projections. While the originally presented CIWA funding plan showed a 4% water rate increase in Fiscal Year 2018, this budget recommendation only shows a 3% water rate increase. Therefore, the savings over previous projections is now 13.5%. One of the two main ways that was accomplished is the vacant Water Plant Manager position has been frozen for Fiscal Year 2018, with the previous Plant Manager, Denise Ihrig, being promoted to Water Department Manager, replacing the retiring Bob Green, and performing both duties. The second way the water rates are being held down is a reduction in the amount of debt that is being issued, by identifying additional available fund balances and delaying additional capital projects. The approved strategy was to fund the $10.7 million in total CIWA related acquisition and capital costs with $10.7 million in SRF debt. The new recommendation is to only issue $10 million in SRF debt. 10 In October 2016, Moody's Investors Service upgraded the rating from A3 to A2 on $18 million in City of Dubuque bonds issued to support the Bee Branch Watershed Flood Mitigation Project. City Utilities The sanitary sewer rate increase recommendation is 3%, the water rate increase recommendation is 3% and the solid waste collection rate increase recommendation is 2.3%. The City Council previously approved a 6.75% stormwater rate increase for Fiscal Year 2018 and this recommendation does not change that amount. The following are the utility rate comparisons for other cities in the State of Iowa: RATES AND COMPARISONS Water Rate Comparison for Largest Iowa Cities with Water Softening Water Rate Rank City (6,000 Gallons/ residence avg.) 7 West Des Moines $33.55 6 Des Moines $30.25 5 Iowa City $30.24 4 Council Bluffs $28.82 3 Dubuque $28.43 (FY 2018) 2 Ames $28.22 1 Cedar Rapids $27.27 Average w/o Dubuque $29.73 Dubuque's water is some of the best in the world! The highest ranked city (West Des Moines) is 18.02% higher than Dubuque's rate, and the average is 4.56% higher than Dubuque. 11 Sanitary Sewer Rate Comparison for Eleven Largest Iowa Cities Sanitary Rank City Sewer Rate (Based on 6,000 Gallons/month) 11 Ankeny $67.52 10 Des Moines $45.92 9 Dubuque $39.25 (FY 2018) 8 West Des Moines $38.30 7 Iowa City $36.17 6 Davenport $35.26 5 Cedar Rapids $33.93 4 Ames $33.73 3 Sioux City $31.88 2 Waterloo $25.75 1 Council Bluffs $22.88 Average w/o Dubuque $37.13 The highest ranked city (Ankeny) is 72.04% higher than Dubuque's rate, and the average is 5.38% lower than Dubuque. 12 Solid Waste Collection Rate Comparison for Eleven Largest Iowa Cities Rank City Monthly Rate 11 Ames $26.25 10 Cedar Rapids $21.32 9 Council Bluffs $18.00 8 Sioux City $16.30 7 Ankeny $16.25 6 Iowa City $15.90 5 1 Dubuque $15.11 (FY 2018) 4 Davenport $11.91 3 Des Moines $11.00 2 West Des Moines $10.55 1 Waterloo $ 9.00 Average w/o Dubuque $15.65 The highest ranked city (Ames) is 74% higher than Dubuque's rate, and the average is 4% higher than Dubuque. Stormwater Rate Comparison for the Largest Iowa Cities with Stormwater Fees Rank City Stormwater Rate 10 Des Moines $12.07 9 Dubuque $ 7.27(FY 2018) 8 Ankeny $ 5.50 7 Cedar Rapids $ 5.49 6 Iowa City $ 4.50 5 West Des Moines $ 4.25 4 Ames $ 3.45 3 Waterloo $ 2.75 2 Davenport $ 2.64 1 Sioux City $ 1.84 Average w/o Dubuque $ 4.72 The highest ranked city (Des Moines) is 66% higher than Dubuque's rate, and the average is 35% lower than Dubuque. 13 Improvement Packages There were 120 improvement level decision packages requested in Fiscal Year 2018, of which, 48 are being recommended for funding. The recurring general fund expenditures total $40,599, so those will also impact future budget years. The non-recurring general fund expenditures total $18,306. The remaining improvement packages recommended for funding from non-property tax support total $114,704. Multi-Residential Property Tax Classification Beginning in Fiscal Year 2017 (July 1 , 2016), new State legislation created a new property tax classification for rental properties called multi-residential, which requires a rollback, or assessment limitations order, on multi-residential property which will eventually equal the residential rollback. Multi-residential property includes apartments with three or more units. Rental properties of two units were already classified as residential property. The State of Iowa will not backfill property tax loss from the rollback on multi-residential property. The rollback will be 86.25% ($331 ,239) in Fiscal Year 2017, 82.50% ($471 ,885) in Fiscal Year 2018, 78.75% ($576,152) in Fiscal Year 2019, 75.00% ($684,614) in Fiscal Year 2020, 71 .25% ($785,129) in Fiscal Year 2021 , 67.50% ($890,380) in Fiscal Year 2022, 63.75% ($993,116) in Fiscal Year 2023 and will equal the residential rollback in Fiscal Year 2024 which is currently 56.94% ($1 ,179,685). This annual loss in tax revenue of $471,885 in Fiscal Year 2018 and $1,179,685 from multi-residential property when fully implemented in Fiscal Year 2024 will not be backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City will lose $5,912,201 in total, meaning landlords will have paid that much less in property taxes. State Backfill of Property Tax Reform Legislation Commercial and Industrial taxpayers previously were taxed at 100% of assessed value; however due to legislative changes in Fiscal Year 2013, a 95% rollback factor was applied in Fiscal Year 2015 and a 90% rollback factor will be applied in Fiscal Year 2016 and beyond. The State of Iowa will backfill the loss in property tax revenue from the rollback and the backfill 100% in Fiscal Year 2015 through Fiscal Year 2017 and then the backfill will be capped at the Fiscal Year 2017 level in Fiscal Year 2018 and beyond. The Fiscal Year 2018 State backfill for property tax loss is estimated to be $1,095,247. In each of the five fiscal years in this budget recommendation, in the Tax Increment Financing (TIF) Economic Development and Slum and Blight Urban Renewal Districts, there is some built in protection against the possibility that at some point in time the State of Iowa might stop funding the property tax reform backfill payments. In these TIF areas, the City is not allocating all of the available resources. Each year the state funds the backfill that will give the City greater resources to accomplish the intended goals of 14 the TIF district that can be carried into the next budget year. There are numerous unfunded needs. The Fiscal Year 2017 Downtown TIF budget is further impacted by $500,000 being reserved for a loan to the Dubuque Brewery and Malting Project (3200 Jackson Street) should that project result in a development agreement. Health Insurance The City portion of health insurance expense is projected to not increase from $1 ,325 per month per contract (based on 563 contracts) in Fiscal Year 2018. The City of Dubuque is self-insured and actual expenses are paid each year with the City only having stop-loss coverage for major claims. Estimates for Fiscal Years 2019-2022 have been increased by 6.32% per year. The no increase in Fiscal Year 2018 is based on anticipated savings from the responses to the City Request for Proposals for Third Party Administrator (TPA) services and possible changes in collective bargaining legislation at the state level. The Jule The increase in property tax support for Transit from Fiscal Year 2017 to Fiscal Year 2018 is $311 ,827, which reflects reduced revenue (-$225,914) due to the Iowa Clean Air Attainment grant ending for the Midtown Loop and Feeder (January 2017). The continuation of the Midtown Loop and Feeder route was funded with property tax as a recurring improvement package in Fiscal Year 2017. In addition, 2.82 FTE (5,866 hours annually) related to improvement packages approved in Fiscal Year 2015 and Fiscal Year 2016 for the Shopping Circulator, Nightrider and Saturday Paratransit Service were understated in the Fiscal Year 2016 and 2017 budget which was corrected in Fiscal Year 2018 (+$121 ,526). The following is a ten-year history of the Transit subsidy: Fiscal Year Amount % Change 2018 Projection $1 ,484,712 +26.6% 2017 Budget $1 ,172,885 +24.4% 2016 Actual $942,752 -13.2% 2015 Actual $1 ,086,080 +30.2% 2014 Actual $833,302 -20.2% 2013 Actual $1 ,044,171 +45.5% 2012 Actual $717,611 -33.5% 2011 Actual $1 ,078,726 -7.1 % 2010 Actual $1 ,161 ,393 -7.4% 2009 Actual $1 ,253,638 +17.2% 2008 Actual $1 ,070,053 +15.9% 15 Not-for-Profit Projects There are several significant not-for-profit quality of life investments being considered for Dubuque. The Dubuque Community Y is considering building a new facility to meet many of the indoor recreation needs of the community. The Miracle League of Dubuque intends to build a Miracle League baseball field and all-inclusive playground for Dubuque area individuals with special needs. Tri-State Blind Society intends to build a new facility after selling their former location. The Dubuque PONY Youth Baseball organization intends to build a new sports complex, including the young adult Northwoods League bringing a franchise to Dubuque. The redevelopment of the former St. Mary's site continues as Steeple Square. Council Priorities and Individual Projects The City of Dubuque's mission is to deliver excellent municipal services that support urban living; contribute to an equitable, sustainable city; plan for the community's future; and facilitate access to critical human services. Progress was made in 2016 on a wide variety of projects and initiatives designed to fulfill that mission through work by the City and partners. Inclusive Dubuque In 2016, the Network, with the Community Foundation of Greater Dubuque acting as the backbone organization, turned its focus to providing learning opportunities, tools and resources, and baseline data to help community members continue to advance equity in our region and across specific sectors. A few highlights of the network's efforts in 2016 include: • Almost 100 community members and Network partners engaged in sector groups around Equity Profile focus areas. Active groups include Arts and Culture, Housing, Education, and Health. o Arts and Culture: Members are exploring and sharing ways they are taking the equity lens into their own organizations, including an evaluation of the diversity of their arts and culture offerings, partnering with current diversity projects happening (Ex. Art Museum partnering with the Facing Diversity: Marshallese Stories project), and working with/as the Master Plan Task Force for Inclusion and Diversity. The Arts and Business Luncheon was the result of discussion among sector group members. The group is also developing a toolkit that focuses on successful arts and culture interventions across sectors. o Housing: Members are working with the City and the NAACP on their housing focus areas and strategies, including advocating for fair housing, and providing equity learning opportunities for renters and landlords. 16 Relationships are being forged in the meetings that strengthen partnerships among those in the Dubuque area housing sector. o Education: Members are exploring 3 main areas: 1) cultural competency opportunities for the school districts' teachers, staff, and administrators; 2) providing and supporting the use of equity self-assessments for those in the education sectors; 3) using equity tools to explore and implement hiring practice strategies, culturally sensitive curriculum ideas, and culturally sensitive behavioral strategies. o Health: Adding and analyzing current health data to supplement the 2016 Equity Profile Health data. This data will help determine next steps for the group. • Inclusive Dubuque facilitated or partnered on four equity learning opportunities that were offered to the community (Robert Spicer, Manuel Pastor, Shirley Davis and Results-Based Accountability training). An upcoming learning opportunity in April with Dr. Jennifer Harvey will be primarily focused on the faith community. Faith-based partners include Children of Abraham, Downtown Christian Association, BVMs, Franciscans, Wartburg Seminary, and Loras College. • Several introductory equity toolkits, including a self-assessment tool, modified from the D5 Coalition, were published for community members to use in their organizations. • The first annual Advancing Equity: Community Efforts and Outcomes report was published in the fall of 2016 detailing the work of partners and community organizations working to advance equity and inclusion. Information is being gathered for the upcoming report that will be published late spring. • The Peer-Learning Council continues to work on a five-year plan for equity learning opportunities, including topics for Network Partner meetings, facilitation training, and extended community conversations. • The Network hosted more than 70 community members at its first Community Conversation in December. As a result, a series of additional conversations have been planned for spring 2017: February 15th, March 28th, and May 2. More intimate conversations are planned for February 22 and March 14th to offer Community Conversation participants an opportunity to deepen conversations. The National League of Cities (NLC) presented a first-place award in the 2016 NLC City Cultural Diversity Awards to the City of Dubuque for the City's support of Inclusive Dubuque and its efforts to develop a community equity profile. The Mayor and City Council added the term "equity" to the City's Vision Statement and Mission Statement and selected Inclusive Dubuque as a top priority. The building housing the Multicultural 17 Family Center (MFC) was renamed the Ruby Sutton Building in 2016 and the abutting Colts building was purchased to allow for future MFC expansion. As a Network Partner in Inclusive Dubuque, the City has been reviewing ways that we contribute towards an equitable community through our own operations. To this end, we have an Equity Core Team that has developed the following resources for staff to use within their departments: • Developed a framework for department equity plans that includes goal areas, indicators, and proposed performance measures for workforce recruitment and retention, grants and contracts, equitable delivery of city services through community engagement, and collective impact partnerships; • Introduced an equity toolkit for staff to use to think through how best to address inequities in a particular project; • Offered a workshop on equity concerns related to housing using the video Race: the Power of an Illusion, interactive activities, and the opportunity to practice using an equity tool; • Offered a workshop on Results Based Accountability on ways to use data, along with an asset based community development approach, to develop and continually analyze the success of equity strategies within departments. We also have a Grants and Purchases of Services Team that is reviewing ways to integrate equity into grant awards and provide support to partners, and an Intercultural Facilitators Team that is offering a four-day workshop focused on developing equity plans using an intercultural approach. Some notable outcomes around workforce recruitment include: • Leisure Services focused on diversifying recruitment for seasonal positions, resulting in hires being 95% white, 4% African-American, and 1 % Hispanic. • Police Department recruitment yielded 28% applicants of color and 21 % female applicants. Current staffing in the PD is 89% male, 12% female, 4% Black/African-American and 3% Hispanic/Latino. • Fire Department partnership with NICC to develop a pipeline of qualified applicants resulted in successful recruitment of a diverse group of students into the Emergency Medical Technician (EMT) course. 18 Dubuque Works In the 345 CEO interviews done by the Greater Dubuque Development Corporation last year, the #1 community weakness and the #1 impediment to company growth is lack of a skilled workforce. Within 10 years this situation will reach a crisis level unless the population grows and residents obtain the skills needed to meet the employment opportunities: Greater Dubuque Region 2016-2026 180,000 170,000 161,905 160,000 150,000 140,000 140,000 t 132,762 130,000 r 129,043 120,000 :i.:L 6,S 93 110,000 100,000 Working Age Population Jobs Labor Force Funded by the City of Dubuque, Dubuque County, and Mystique Casino, Dubuque Works represents a collaboration of 13 partners, including the Greater Dubuque Development Corporation, serving as the backbone organization in this collective impact model, engaged in ensuring a thriving workforce in the Greater Dubuque area. In Fall of 2016, the Dubuque Works partners agreed to begin meeting monthly to move forward an ambitious workforce agenda to further the collaborative's three primary 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 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. 19 This decision to increase partner meetings was based on a thorough review of the most recent data of funded Dubuque Works programs, the 2016 Greater Dubuque Skills Gap Analysis, summary of HR Action data (qualitative and quantitative report from HR personnel in the region), input from local industry through sector boards, and a review of regional and national best practices. After developing a detailed outline of workforce solutions in place in the community targeting New Workforce Recruits, Existing Workforce, Unemployed and Under-employed Workforce, and the Workforce Pipeline (High School and College students), the Dubuque Works collaborative has begun work on a 2017 strategic plan aimed at furthering a shared agenda among partners to increase participation in existing programs and enhance programming where needed to fill critical workforce gaps, develop talent, and recruit and retain talent in Greater Dubuque. Key strategic plan items in developments, including the following: • Maintain integrated local, state, and private funding for Opportunity Dubuque • Increase access to local public transportation for college students and 2nd and 3rd shift workers in the City of Dubuque through the Jule Transit system • Expand opportunities for students who have stopped out of high school and adults without a high school diploma to pursue a high school equivalency degree and job training programs • Support joint recruitment and marketing of the Greater Dubuque area as a community of choice to live and work • Increase recruitment, retention, and training of top skills gap needs areas through public private-partnerships • Support pathways for individuals with significant barriers to employment such as ex-offenders, single parents, individuals with English as a second language, etc., that include access to 1 :1 coaching and wrap-around services • Support integrated partnerships with City and non-profit service providers in Housing, Education, Workforce, Health, and other services to reduce duplication of services to low-income residents and enhance client success to achieve economic stability. • Support disaggregation of all program data, workforce data, and population data to identify inequities and bias, support equity education opportunities and utilize an equity lens to inform decisions 20 Recent Dubuque Works accomplishments and accolades including the following: • In 2016 Greater Dubuque Development took first place in the Mid-America Economic Development Council (MAEDC) Workforce Development category for its HR Action program, which collects qualitative and quantitative local workforce data from human resources professionals to inform the strategy of Dubuque Works. • Greater Dubuque Development's Newcomer Services continue to be heavily used by local employers. In 2016, 136 newcomers participated in the free 5- night Distinctively Dubuque class from 60 unique employers; From July 1 , 2016-December 31 , we have provided 85 community tours to newcomers, and provided 43 other assistance to newcomers through our concierge services. • In 2016, the International Economic Development Council (IEDC) recognized Dr. Liang Chee Wee, PhD., president of Northeast Iowa Community College, as its Institutional Leadership Award designee for his contribution to economic development through education for programs including the Dubuque Works- funded Opportunity Dubuque and participation in Start-Up Dubuque, which benefits local start-up companies and entrepreneurs. • In 2016, the International Economic Development Council (IEDC) also awarded Mayor Roy Buol with a Leadership for Public Service award for this commitment to economic development through public-private partnership programs such as Dubuque Works among other accomplishments. • Opportunity Dubuque administered by Northeast Iowa Community College continues to expand and contribute to a skilled workforce in the region; as of December 31 , 2016, the job training initiative has graduated 434 individuals with a job placement or continuing education rate of 98% for the great majority (88%) they were able to contact after 6 months. • Opportunity Dubuque has also increased the diversity of its enrollees through a targeted outreach program implemented through the joint hiring of a NICC success coach; From July 1 , 2015 to December 31 , 2016, the Outreach Success Coach has engaged 198 students, 81 of which have completed or are scheduled for training. Of the 52 completers, they were all employed or continuing education within 6 months of completion (14 were unable to be reached). 39% of the completers disclosed their race as Black/African- American, 8% as Hispanic or Latino, and 41 % as White. • The Jule College Student Ridership program is experiencing a high percentage of college students utilizing the daytime and nighttime access. As of October, 21 % of Clarke students utilized the Jule, 29% of Loras students, 21 and 17% of University of Dubuque students. This ridership often increases during second semester on campuses. • Other funded Dubuque Works programs include the Dubuque Circles Initiative, which connects volunteers and community leaders to families wanting to move out of poverty through pathways to self-sufficiency; Dubuque Area Labor Management Council to fund Career Exploration Fairs and the Exploring Program; and the Dubuque Area Chamber of Commerce for their Business After School program. Economic Development Greater Dubuque Development Corporation annual support of$780,613 is budgeted to be paid mostly from Dubuque Industrial Center Land Sales in Fiscal Year 2018 (a $586,513 balance exists after June 30, 2017), with a $100,000 increase from Fiscal Year 2018 paid from the Greater Downtown TIF. This additional $100,000 per year will support a sixth pillar GDDC is adding to their work plan related to downtown redevelopment. In Fiscal Year 2019 and beyond Greater Dubuque Development Corporation will be paid from the Greater Downtown TIF ($100,000) and Dubuque Industrial Center West land sales. In Dr. Thomas Tuttle's new book "Growing Jobs, Transforming the Way We Approach Economic Development," he said this: "The 'secret sauce' for Dubuque, as it was for Austin (Texas), is collaboration, placing the needs of the community above self-interest and a willingness to do what it takes without concern for who gets the credit. Also central to the ability to create the climate in which these achievements could take place is the honest belief that no single individual or organization has the answer to what must be done to enable Dubuque to move towards its vision — it requires 'collective impact."' In his book, Dr. Tuttle identified Dubuque as a model for successful economic development in the 21st Century. In the budget recommendation to the City Council, the City works with the private sector in funding that success. The funding request provides approximately 37% of Greater Dubuque's operating budget for 2017-2018 and would be the first investment in Greater Dubuque's new five-year capital campaign entitled, Greater Dubuque 2022. This funding request helps to fund the five pillars of Greater Dubuque's work: • Business Retention and Expansion • Workforce Solutions • National Marketing • Sustainable Innovation • StartUp Dubuque 22 In addition, $100,000 in new funding is included to fund in part a new initiative, a 6t" pillar, for Greater Dubuque that focuses on Downtown Transformation. Working in collaboration with partners in the public and private sector, Greater Dubuque will revitalize the Washington Neighborhood Development Corporation and, through collective impact, bring the same results to our most challenged neighborhoods that have been realized elsewhere. The 5-year goals of the Greater Dubuque Development Corporation 2012-2017 were as follows: Construction Goal: Spur and promote $700 million in new construction in the Dubuque Metropolitan Statistical area. Actual: $830,124,369 CONSTRUCTION I GOAL: $7001000,000 Total Residential S317,771,267 Total Commercial S51 2,353,102 Total Construction Cumulative $830,124,369 $900,000,000.00 $800,000,000.00 $700,000,000.00 $600,000,000.00 $500,000,000.00 $400,000,000.00 $300,000,000.00 -- $200,000,000.00 $100,000,000.00 S 0.00 2012 2013 2014 2015 2016 2017 -Residential --w-Co mmercial —*—Total Construction Cumulatue Average Wage Goal: Increase the average wage to over $18.00 per hour Actual: $23.08 per hour DUBUQUE COUNTY WAGE LEVEL GOAL: $18.00+ CURRENT: $23.08 $26.50 $26.00 $25.50 $25.00 $24.50 --- -- $24.00 523.50 S 23.00 AL 522.50 $22.00 S21.50 S21.00 S20.50 - S 20.00 S19.50 - - S19.00 S18.50 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec ■ 2012-Benchmark -, 2013-Year 1 2014-Year 2 2015-Year 3 -w-2016-Year 4 2017-Year 5 23 Population Goal: Grow the Dubuque Metropolitan Statistical area population to 96,500 Actual: 97,125 DUBUQUE COUNTY POPULATION GROWTH GOAL: 961500 CURRENT: 97,125 98,000 96,000 94,000 92,000 hmL r� �O ry0 ry0 �O �O ro �o t Population Total Job Creation Goal: Promote the creation of 3,300 new jobs (net) bringing our workforce to 60,000 Actual: 62,000 DUBUQUE MSA LABOR FORCE GOAL: 60,000 CURRENT: 62,000 63,000 62,500 62,000 61,500 61,000 60,500 60,000 59,500 59,000 - 58,500 581000 57,500 57,000 56,500 – 56,000 — Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2012-Benchmark ■ 2013-Year 1 ---*-2014-Year 2 2015-Year 3 2016-Year 4 • 2017-Year 5 24 While Dubuque is experiencing success in economic development, there are communities across the country and in the Midwest that are having the opposite experience. According to 24/7 Wall Street the following is the top 25 cities for losing jobs in 2016, of the 75 communities that experienced job loss: Rank City Employment Change 25 Lynchburg, VA -1 .41 % 24 Bloomington, IL -1.41% 23 Elmira, NY -1 .45% 22 Joplin, MO -1.54% 21 Vineland-Bridgeton, NJ -1 .57% 20 Duluth, MN-WI -1.67% 19 Alexandria, LA -1 .67% 18 Decatur, IL -1.68% 17 Williamsport, PA -1.82% 16 Fairbanks, AK -1 .86% 15 Topeka, KS -1.96% 14 Binghamton, NY -1 .98% 13 Mankato, MN -2.01% 12 Staunton-Waynesboro, VA -2.02% 11 Tulsa, OK -2.03% 10 Manhattan, KS -2.03% 9 Cheyenne, WY -2.07% 8 Lawton, OK -2.07% 7 Carbondale-Marion, IL -2.15% 6 Oklahoma City, OK -2.20% 5 Mansfield, OH -2.33% 4 Shreveport-Bossier, LA -2.35% 3 Houma-Thibodaux, LA -3.74% 2 Casper, WY -3.77% 1 Lafayette, LA -4.46% 24/7 Wall Street reports that "Half of the 20 fastest shrinking cities are in the so-called Rust Belt of the United States...encompassed parts of the Northeastern and Midwestern United States..." 25 Total Personal Income is income earned by an area's workforce. A growing workforce and growing wages are reasons for a rise in Total Personal Income for an area. Total Personal Income rose in 2014 in the Dubuque area by 4.3%. That is not true everywhere. In fact, Dubuque is surrounded by communities significantly underperforming the 2014 national growth rate of 2.9%, including: Janesville-Beloit, WI 0.5% Mankato, MN 0.4% Sioux City, IA 0.5% Kankakee, IL -0.9% Springfield, IL 0.3% Carbondale-Marion, IL 0.4% Peoria, IL -1 .1% Danville, IL -3.9% Bloomington, IL -3.2% Grand Forks, ND -1 .4% Grand Island, NE -0.5% Terre Haute, IN 0.2% Topeka, KS 0.5% In 2016, Dubuque reached a record level of hotel occupancy, achieving 60.3%, as reported by the Dubuque Area Convention and Visitors Bureau. This bodes well for the economy and for the possibility of future hotel development. As reported in the Telegraph Herald on January 14, 2017, the East Central Iowa Association of Realtors reported strong sales in 2016 in the Dubuque area with 1 ,296 homes sold, an increase of 5% compared to 2015. The average sales price jumped from $171 ,982 in 2015 to $182,380 in 2016, a 6% increase. The Federal Housing Finance Agency reports that over the last five years, house prices have risen 11 .21% in the Dubuque area. In Dubuque, new housing starts are up 59% comparing 2016 with 2015. As reported in the Dubuque Telegraph Herald on December 29, 2016, "Through interviews with nearly 350 area business leaders, officials from a Dubuque economic development group have learned that nearly half of the companies are planning to expand." Why am I such a believer in the future of Dubuque and that things will be getting even better, despite economic development troubles in other communities? Last year was a great year for Dubuque as far as investment and job creation. The article says that data collected by the Greater Dubuque Development Corporation through the interviews of 345 CEO's in our area show that 45% of Dubuque area businesses plan to expand. That is up from 37% in 2015 interviews. GDDC reports that job listings on AccessDubuqueJobs.com in December 2015 were at 779 and in December 2016 were at 1 ,109, an increase of 330. 26 The Dubuque MSA's total non-farm employment for December 2016 was 62,000 (up 800 from 61,200 in December 2015) and unemployment was 3.4% (down from 3.6% in December 2015). Roasting Solutions invested approximately $7 million to construct a new national headquarter location and manufacturing facility in Dubuque Industrial Center South. Cottingham & Butler announced plans to add 90 new positions to their local workforce over the next three years and invest $2.4 million to expand their operations into the Roshek Building. Rite-Hite announced an $8.9 million project to expand current production facility in Dubuque Industrial Center and add 24 new employees. Alliant Energy, A.Y. McDonald Mfg. Co., and City of Dubuque are partnering to develop the largest solar project in Iowa west of the Dubuque Industrial Center West. BioResource Development, in partnership with Black Hills Energy and the City, began construction on multi-million dollar biomethane system within City's Water & Resource Recovery Center, allowing the City to utilize biogas more efficiently and generate new revenue. Quality of life is an integral part of economic development efforts: 18 new restaurants opened or began construction and four new food trucks began operating in Dubuque in 2016; the City Council adopted a Arts and Culture Master Plan; and the Inclusive Dubuque network has grown to over 60 businesses and organizations. City of Dubuque Development Review Team activity is up significantly over the last eight years since the great recession, with a 35% increase in agenda items, comparing Fiscal Year 2016 with Fiscal Year 2015. While some of that can be attributed to more applicants taking advantage of the process, it also is an indication of more development and activity. Development Review Team: Activity by Fiscal Year 80 70 60 v 50 40 z 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 Fiscal year ■Meetings ■Agenda Items 27 The City has been having tremendous success in the area of economic development. The use of Tax Increment Financing as a tool to finance industrial land acquisition and development and to create incentives for business to create jobs is working well. Since the late 1990's, the City has acquired 1,257 acres of land for industrial park development and over 4,500 jobs exist in the technology and industrial parks. These employees have rented apartments, bought homes, shopped at stores and patronize restaurants. All of the taxing bodies have benefitted. Now the taxing bodies will benefit further beginning in Fiscal Year 2019, as some of the TIF areas reach their 20-year legal limit: City of Dubuque New Taxing Bodies Tax$- Retiring TIF Districts,in First Year of Expiration $1,869,819 DCSD, $830,125 $1,900,000 ■City, $603,720 $1,800,000 County, $349,008 $1,700,000 ■NICC, $51,966 $1,600,000 Other, $35,000 $1,500,000 $1,400,000 $1,300,000 $526,845 $770,268 DCSD, $341,968 $1,200,000 DCSD, $233,898 --City $170106 $382,891 City, $248,701 , , $1,100,000 County, $143,773 County, $98,337 DCSD, $169,988 E NICC, $21,407 $1,000,000 In NICC, $14,642 Other, $9,862 ■City, $123,626 Other, $14,418 $900,000 County, $71,468 �___--- $800,000 NICC, $10,641 $700,000 $442,161 Other, $7,167 $600,000 $500,000 ' $400,000 $300,000 $200,000 $17,480 $100,000 t Already Tech Park South DICW-Subarea Quebecor-2025 Kerper-2032 DICW-Subarea Returned to -2019 B-2019 D-2032 Taxing Bodies Total Annual Return to Schools,County &City= $4,009,464 This is what will go to the Taxing Bodies in the first year after expiration of the Urban Renewal District. Based on current tax rate of Taxing Bodies and 1/1/16 assessed value,even though It is expected that the assessed value would increase before the district expiration. Arts Master Plan In late 2014, an RFP was released for an Arts Master Plan for the City of Dubuque. In February 2015, the City Council approved entering an agreement with Lord Cultural Resources (Consultant) for the creation of an Arts Master Plan. The Consultants have worked in several phases with City staff, Dubuque's residents and organizations over 18 months to collect data to inform an Arts Master Plan. The final plan was presented to City council on October 3rd 28 The Arts and Cultural Affairs Advisory commission has had discussions about implementation of the plan. One of the tenets of the plan and requests proposed to City Council by Susan Riedel, Chair of the Arts and Cultural Affairs Advisory Commission, was concerning the part time status of the Arts and Cultural Affairs Coordinator. The commission recognized that it would take a significant time investment in order to enact such a comprehensive plan. Unfortunately, this budget recommendation does not change that status. The coordinator in conjunction with the commission has created a roadmap to begin to enact the plan's implementation. This implementation road map has been published to the City of Dubuque website and the process is ongoing to recruit relevant talent to the taskforces outlined in the implementation roadmap. A portal has also been created to allow members of the community to sign on to a taskforce of their choice. The commission intends to continue to work on the masterplan throughout 2017. East West Corridor Study Implementation The US Highway 20 corridor is the primary east-west route in the City of Dubuque and future traffic volume projections indicate US Highway 20 alone will not provide sufficient capacity for east-west travel in the City. Capacity along alternate east-west corridors will need to be improved to provide connectivity between the western growth areas and the downtown urban core. In February 2012, the City Council formally adopted the East - West Corridor Connectivity Study and directed City staff to begin implementation plans. The study included recommended improvements supporting complete streets concepts, multi-modal transportation, vehicle, pedestrian, bicycle, and recreational improvements. The 5-year CIP budget recommendation for Fiscal Years 2017-2022 includes $10,771 ,000. The section of University Avenue, from Pennsylvania Avenue to Loras Boulevard, referred to as the "Overlap Section," was recommended for converting the three intersections along University Avenue to roundabouts. With funds programmed, the next steps in the design development process are to begin the preliminary engineering and environmental (NEPA) study phase for the Overlap Section. Once the preliminary engineering and environmental (NEPA) study are completed, corridor impacts will be identified and property acquisition could begin in approximately FY2018 and would take approximately three years to complete. Once property acquisition is completed within the "Overlap Section," construction to convert the three intersections along University Avenue to roundabouts could begin in FY2020 and would take approximately three years to complete. Although not included in the East - West Corridor Connectivity Study - Final Report, the Grandview Avenue and Delhi Street intersection was converted to a roundabout intersection, which was completed in the summer of 2016. Prior to the roundabout, vehicles at this intersection experienced a high level of delay during peak travel times. Following the completion of the Grandview - Delhi roundabout intersection, comments 29 from the traveling public and nearby businesses has been overwhelmingly positive and supportive. Not yet reflected in the proposed Fiscal Year 2018 — Fiscal Year 2022 recommended budget, there is current legislation in the Iowa House and Senate that could change how both counties and cities are allocated federal aid funding. The proposed bill would allocate moneys from the primary road fund (PRF) to counties and cities for the establishment, construction, and maintenance of roads and bridges in exchange for the State retaining all or a portion of federal aid road funds that would otherwise be allocated to counties and cities. The "swap" of federal funds for state PRF will be very beneficial to all counties and cities, allowing public transportation related improvement projects to be completed more efficiently at the local level, improved schedule delivery, and reducing county and city costs by eliminating currently required federal regulatory oversight requirements. Hopefully this will reduce the timeline for the implementation schedule. Traffic Signal Synchronization City-Wide An important element of improving the East-West Corridor safety and traffic flow is the STREETS project. The goal of this project is to develop a smart, next-generation, traffic management and control system. The Smart Traffic Routing with Efficient and Effective Traffic Signals (STREETS) will use traffic control strategies to enable dynamic traffic routing to maximize the use of existing roadway capacities in the Dubuque metro area. The proposed system will reduce wear and tear on major corridors in the Dubuque metro area by distributing traffic evenly throughout the metro area. By dynamically rerouting traffic on the roads with extra capacities, the proposed system will reduce/eliminate traffic bottlenecks, reduce congestion, improve travel times, and improve safety in the metro area. As an auxiliary outcome of the system operations, the City staff will use the proposed system to identify future projects that will improve safety and reduce congestion in the metro area. Finally, the system will help to measure the effectiveness of safety and congestion projects. This project is one of a kind and will become a replicable model for small urban areas such as Dubuque with populations under 100,000. Dubuque Metropolitan Area Transportation Study (DMATS) and the City of Dubuque staff had a series of meetings with Iowa Department of Transportation (IADOT) staff to finalize the scope of the project. Staff also had a work session with Federal Highway Authority (FHWA) staff in Washington D.C. to discuss the project scope and implementation process. In the fall of 2016, the project received a commitment of$200,000 from IADOT and $200,000 from DMATS to implement Task I -Systems Engineering and Task II- Model development. 30 The FHWA recommends using a robust dynamic adaptive traffic signal model that can have a predictive pattern match embedded to keep up with the system. Overall, the FHWA staff felt the project would be very successful if implemented as described and stated the following "Combining traffic control and traffic assignment — Holy Grail of traffic research —this project is unusual because of the actual implementation piece. There has been theory presented but not implemented. Very special project. Very hard to implement in large cities due to their size and costs. This is special because you have the perfect size to implement." TASK II, III and IV will be designed and funded based on the systems engineering output. Master Plan for Chaplain Schmitt Island The Mayor and City Council adopted the Chaplain Schmitt Master Plan in July 2014. Key issues are regulatory requirements such as wetlands, leisure opportunities and facilities, and economic/business investment. The Dubuque Racing Association has formed an Implementation Committee chaired by DRA Board Member and City Council Member Kevin Lynch. The Committee has hired a firm to provide in mid-2017 a report on development opportunities and actions. The Master Plan calls for opportunities for commercial, retail, and residential options on the island. This could mean additional live, work, play options for residents, as well as job opportunities and sustainable economic growth. River Cruises Docking Facility There has been a significant delay in any plans for Viking River Cruises to begin operation on the Mississippi River. It is now not clear when that service will begin and no ship construction has begun. The City is seeing significant riverboat traffic and new boats will be arriving in 2017 and 2018. The 5-year CIP shows some activity beginning for the City to design a new docking facility in Fiscal Year 2022. Construction would begin in Fiscal Year 2023 if a funding source is identified. Housing TIF The City Council's 15-year vision statement for Dubuque calls for a "strong, diverse economy and expanding connectivity" and "choices of quality, livable neighborhoods." Using Housing TIF enables Dubuque to implement projects to pursue that vision and support workforce retention and development, increase the local tax base, and address the city and school district's stagnant population growth. By state law, when TIF is used for housing development, approximately 38 percent of the future tax increment revenues from the project must be used to provide housing 31 assistance to low- and moderate-income families whose incomes are no greater than 80 percent of the median income anywhere in the city. This is starter housing for Dubuque's current and future workforce, and our most vulnerable residents, the elderly and disabled. Initial plans call for some of the affordable housing assistance to be provided in downtown neighborhoods through the City's CHANGE (Comprehensive Housing Activities for Neighborhood Growth & Enrichment) Program. Over the next five years, Dubuque's Housing TIF districts (current and future) are projected to provide approximately $3 million for affordable housing. By utilizing Housing TIF, the City of Dubuque plans to increase the average number of new single-family homes built per year in the City limits from 100 (annual average for six year period 2011-2016) to at least 150, as a share of the 351 annual average built in the Tri-State area. The spring 2016 Real Estate Facts and Trends published by Ruhl and Ruhl Realtors helps underscore the need for additional residential lots in the Dubuque region. The Regional New Construction Home Sales Active Inventory is as follows: Active Inventory Active Inventory % Change in Inventory As of 3/31/2015 As of 3/31/2016 From 2015 61 48 -21 % The City Council has approved Timber-Hyrst and English Ridge Housing TIF Districts. By the end of 2028, the City anticipates 391 new homes will have been built in these Housing TIF districts. Two more Housing TIF Districts are being negotiated and expected to come to the City Council within 60 days and those include an additional 304 lots. Each of these Housing TIF Districts has an Urban Renewal Plan that describes the specific use of tax increment funds, such as providing tax rebates, installing public infrastructure, or other planned expenditures. These Housing TIF Districts currently set aside at least 38.1 % of project cost increment, thus providing funding for the benefit of low- and moderate-income family housing opportunities anywhere in the city of Dubuque. 21St Century Policing Action Plan The President's Task Force on 21 st Century Policing met seven times in early 2015. The final report was released in May 2015, and was comprised of six pillars: Pillar One: Building Trust & Legitimacy; Pillar Two: Policy & Oversight; Pillar Three: Technology & Social Media; Pillar Four: Community Policing & Crime Reduction; Pillar Five: Training & Education; and Pillar Six: Officer Wellness & Safety. Throughout the pillars there are several Action Items, and Recommendations, and these are directed either to local 32 authorities and/or federal authorities. In total there are approximately 90 directed to local authorities and 60 directed to the Department of Justice (DOJ), Congress and other federal entities. Locally we have reviewed all of the local recommendations and action items and have been compiling our compliance data. As a Commission on Accreditation for Law Enforcement Agencies (CALEA) accredited agency, the Dubuque Police Department's policies and practices are already in line or mostly in line with the recommendations and action items, especially around written policy. The department also meets recommendations in many of the no-policy areas as well, while others remain in progress, and only a handful of the recommendations would be considered wide open. The ones with little action generally involve training recommendations that include specialized training or training that is not locally available, or are recommendations tied in with the federal recommendations. These recommendations range from simple, such as having specific policy points in its Use of Force policy, to more challenging recommendations that do not have easily measurable goals, such as determining community trust levels. Some recommendations require much longer processes, like implementing a Body Worn Camera (BWC) program, which we did, but it took over a year to initiate and will take time to evaluate. The time and expense invested in initiated a BWC program is already paying dividends in the month it's been in place. We are capturing crucial evidence on the cameras and are using them to review police-community issues. The largest of the pillars is Pillar One: Building Trust & Legitimacy, with 21 recommendations and action items. Areas where we already meet or seeking compliance include the Dubuque Community-Police Relations Committee (formerly Dubuque Community Advisory committee), working with community groups and neighborhood associations, National Night Out, School Resource Officers, Community Police, internships and diverse recruitment, and the traffic stop demographics study we contracted St. Ambrose University to conduct and which is well underway. Transparency and communication with the community is key throughout the pillars but especially Pillar One. Many of the federal recommendations impact the local initiatives as well. The DOJ and other federal entities have recommendations to organize and provide training in a number of areas, analyze and report on topics, as well as be the funding source for many initiatives. There has not been a lot of post-report information on how the entities are meeting the recommendations. 33 Community Safety Chief of Police Mark Dalsing provides the following table comparing annual crime statistics: "Part I" Crimes for Calendar Years 2012-2016 Compiled by the Dubuque Police Department CY16% CY16% Over/Under Over/Under Performance Measures CY12 CY13 CY14 CY15 CY16 Avg. Average Peak Year No. of Crimes Against Persons 186 208 220 265 243 224 8.3% -8.30% Murder 2 0 0 5 1 2 -37.5% -80.0% Sexual Assault 43 38 61 80 98 64 53.1% 0.0% Robbery 21 32 20 27 26 25 3.2% -18.8% Aggravated Assault 120 138 139 153 118 134 -11.7% -22.9% No. of Crimes Against Property 1,992 1,791 1,662 1,953 1,875 1,855 1.1% -5.9% Burglary 5831 431 416 548 420 480 -12.4% -28.0% Burglary to Motor Vehicle 298 231 168 106 144 189 -24.0% -51.7% Theft 1,080 1,103 1,035 1,245 1,235 1,140 8.4% -0.8% Theft of Motor Vehicle 31 26 43 54 76 46 65.2% 0.0% Total 2,178 1,999 1,882 2,218 2,118 2,079 1.9% -6.3% = High Year The National Insurance Services Office (ISO) upgraded the City's fire suppression capabilities rating based on the City's fire department, emergency communications, water supply, and community risk reduction. This new Class II rating places Dubuque among the top three percent in the nation. The Fire Department received a 2016 Mission: Lifeline® EMS Silver Award from the American Heart Association for implementing quality improvement measures for treatment of patients who experience severe heart attacks. Of 931 emergency medical service providers in Iowa, the Dubuque Fire Department is one of only four to meet the criteria. The Police Department purchased and deployed 120 body-worn cameras for all police officers in 2016. The City's network of security and traffic cameras grew to nearly 1 ,000 in 2016. As part of the City's efforts to enhance street lighting, 11 new mid-block poles and LED lights added were added to the Washington Neighborhood in summer 2016 and 430 City-owned lights have been converted to LED since May 2015. To improve the safety of Dubuque's housing stock, the International Property Maintenance Code was adopted in July 2016 and applies to all property types and provides a standard for property maintenance and minimum requirements. The Police Department received its eighth accreditation since 1993 from CALEA in 2016 through regular review of compliance with CALEA's 489 standards of professionalism. The number of confirmed "shots fired" calls were down from 33 in 2015 to 26 in 2016. That number is still not acceptable, but a reduction is an improvement. 34 Traffic/Security Camera System Since May 2016, the City has installed 28 new cameras, along with 9.38 miles of conduit and 4.88 miles of fiber that will allow for future camera installation. The following is a list of 7 areas where cameras have been added. University & Asbury 4 Cameras NW Arterial & JFK & 32nd 2 Cameras Grandview & Delhi 1 Camera Central & Fulton 2 Cameras White & Fulton 3 Cameras White & 13th 1 Camera West Locust & Foye 3 Cameras The remaining 12 cameras were installed at intersections that already had fiber in place to support the installation of the cameras. In addition to the new cameras another 27 cameras where replaced because of newer technology or camera failure. These newer cameras have a higher resolution and Wide Dynamic Range feature which allows them to see better in all light conditions . Today there are 457 Traffic/Security cameras recorded through the Traffic Operations Center in City Hall. Currently Elm and 14th, Elm and 17th and Jackson and 14th are designed and the installation of seven cameras has been started by Racom. Over the next year cameras will also be installed as part of the Bee Branch Project and Loras and Grandview signal project. Imagine Dubuque Imagine Dubuque, the campaign for the new City of Dubuque Comprehensive Plan, began in July 2016 and is scheduled to conclude in October 2017. Inclusive, comprehensive, and tailored community engagement is a priority of City Council and identified as a key strategy toward creating a plan that is reflective of our community. Residents have a variety of ways to share their ideas on how to make Dubuque a more viable, livable and equitable community. To date, City staff and project consultants have developed and hosted a website, App, events, focus groups, presentations and interviews using multiple engagement tools. Over 200 interviews with community stakeholders have been conducted. Over 10 focus group meetings and workshops have been held with community partners. The project has had a presence in our schools, board rooms, community events and neighborhoods. The results to date are encouraging. The website and App have received over 6,500 page views and over 1 ,700 visitors. Over 2,500 ideas have been received because of the engagement strategies and data received to date is showing the input is reflective of the community. The project is halfway complete and more community engagement events are planned through June of 2017. The project website 35 and App will remain a resource for the duration of the project. Presentation of a draft plan to City Council is scheduled for August 2017. Bee Branch Watershed Flood Mitigation Project Construction of the Upper Bee Branch Creek is nearly complete. The creek is functional and landscaping and remaining work will be completed in spring 2017. To date, 79 green alley conversions of the 240 planned are completed. In January 2016, the City was awarded $31 .5 million in federal disaster resiliency funds, including $8.4 million for the Bee Branch Healthy Homes Resiliency Program to improve 320 housing units where low- to moderate-income residents reside and used to make repairs and implement on-site stormwater management principles to decrease environmental health and safety issues from flooding. The Visiting Nurses Association will engage residents of the homes to assist them on their personal road to success. Historic Millwork District The first phase of the Novelty Ironworks Building project was completed in 2016. Plans were announced for a four-story, 54-room Marriott TownPlace Suites extended-stay hotel for 1100 Jackson St. (former Spahn & Rose Lumber Co. warehouse) with construction starting in spring 2017. Plans were also announced for office and retail space at 1065 Jackson St. (also former Spahn & Rose property). Makeshift Motors Inc. is expanding and relocating to 1101 Jackson St. 7 Hills Brewing Co. is remodeling 1085 Washington St. into a brewery scheduled to open in spring 2017. Backpocket Brewing Co. is opening a taproom at 333 E. 10th St. (Novelty Ironworks Building) in early 2017. New Airport Terminal Passenger counts at the Dubuque Regional Airport have increased steadily since 2013. The grand opening for the 36,000-sq. ft. terminal was held on June 9. The project completed six months ahead of schedule and under budget, with 85% of the $37 million cost covered by Federal Aviation Administration. In October, a new restaurant (Barnstormers) opened in the new terminal. CHANGE Program Comprehensive Housing Activities for Neighborhood Growth & Enrichment (CHANGE) was developed to promote community enrichment through a collective/collaborative impact of programs, partnerships, and services to provide economic and social resiliency. Through CHANGE, 739 downtown housing units will be improved from 2016-2021 and $19 million will leverage tens of millions of dollars in private investments. CHANGE includes marginal property acquisition ($4.2 million, 100 housing units), lead and healthy homes program ($3.2 million, 129 housing units), Bee Branch Healthy Homes Program ($8.4 million, 320 housing units), and housing rehabilitation programs ($3.74 million, 190 units). 36 Highlighting the importance of rehabilitating existing housing in Dubuque, nationally, 56% of housing was built prior to 1980, however, in Dubuque 78% of the housing was built prior to 1980: City of Dubuque: Age of Housing 9000 33.30% 8000 7000 6000 5000 4000 13.50% 12.90% 11.90 3000 — 6.70% 7.70% 2000 6.00% 5.80% _ 10000 2 , 1 , 1 1 1 , 1 _ Built Built Built Built Built Built Built Built Built 2010 or 2000 to 1990 to 1980 to 1970 to 1960 to 1950 to 1940 to 1939 or later 2009 1999 1989 1979 1969 1959 1949 earlier While requiring a 21-year covenant to maintain impacted owner-occupied property, this program will: • Decrease neighborhood density in areas where there's a disproportionate number of rental units • Increase property values of homes in targeted defined neighborhoods with historically low property values and build more equity for more people. • Increase 1 st 2nd & 3rd time homebuyers which will contribute to population growth • Ensure that a property retains its original use if it was a single-family unit that was converted into multi-family use for economic reasons. These CHANGE projects, programs and services reflect the collective impact approach of repairing housing units: • Green and Healthy Homes Initiative • Rental Rehabilitation Services • Homeownership workshop • Home advocacy services • Affirmatively furthering fair housing strategy • Lead and Healthy Homes remediation • The Bee Branch Healthy Homes Resiliency project • Owner Occupied Rehabilitation program 37 • Marginal properties rescue and turnaround • Enforcement of the International Property Maintenance Code regulation Currently a strategic plan is being developed to serve as a road map for the development and implementation of the CHANGE program, creating a systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them. In contrast to long-term planning this strategic planning begins with the desired-end and works backward to the current status. In addition to outcomes, the financial vision and resources to reach the goals will be identified. The plan will further identify partners, investors and opportunities for public input and review. Crescent Community Health Center (CCHC) The CCHC celebrated its 10-year anniversary in October 2016. It served over 6,200 patients in 2015, 58% of which were below the poverty line. Approximately half of the patients received dental care and half received medical attention. Housing Development • 2016 Low Income Housing Tax Credit Awards: Applewood IV, providing 54 low income and 6 market rate senior housing units; • 2017 Low Income Housing Tax Credit Applications: The City provided support for 3 Low Income Housing Tax Credit Applications: University Lofts, providing 43 affordable and 5 market rate units at the corner of Alta Vista and University Avenue; Marquette Hall, providing 25 affordable and 3 market rate units for seniors at 2222 Queen St; and Fifteenth Street Apartments, providing 32 affordable and 4 market rate units at 180 W 15th Street. • Housing TIF Designations: Timber-Hyrst and English Ridge. • CHANGE program providing opportunities for affordable homeownership Voluntary Compliance Agreement • Fair Housing Testing was conducted the week of November 7, 2016. The testing was completed by the Fair Housing Center of Nebraska. • February 2016: Revision to Section 8 Administrative Plan • September 2016: Office of Fair Housing and Equal Opportunity Director Betty Bottiger confirms the City substantially met its obligations under the VCA this reporting period 38 Education & Outreach • HUD provided a Fair Housing Equity Assessment tool providing participating regions with demographic data to help map areas of opportunity and analyze levels of segregation. • Examination of current policies, procedures, and programming for disparate impact • Human Rights provided education & outreach to organizations with information on filing fair housing complaints. • Inclusive Dubuque Housing Working Group established the following goals: safe affordable, accessible housing for all. Began tracking percent of population that owns a home, is cost burdened, experiencing housing problems, and vacant homes in neighborhoods. • Fair Housing Training completed in August 2016. • Source of Income Survey mailed to landlords, Housing Choice Voucher participants, and renters. Survey was also available online. • SOI community dialogues held in July-August. • Successful Rental Property Management workshop • HOME Workshop graduated Source of Income Committee • The Source of Income Committee met throughout 2016, sharing information and findings with the City Council during the November 28, 2016 work session. At that time, the City Council provided direction to work to: 1) Adopt and implement a mix of educational/outreach programs to increase participation in the Housing Choice Voucher program and 2) Adopt and implement a mix of financial incentives/policies for creation of Housing Choice Voucher units and affordable housing throughout the community. The Committee successfully conducted a two-year study and reported on findings and options to increase housing options for Assisted Housing participants. The final recommendation from City staff will be at the February 20, 2016 City Council meeting. Street Program In 2016, 50 of 53 asphalt projects equaling a total of 7.11 centerline miles of streets were overlayed by Public Works Department staff. The three remaining projects, Villa Street- Rush to the south end, Florence Street - Villa to Mountain Lane, and Mountain 39 Lane — Rush to Florence, will be completed in the spring of 2017 after the installation of a storm sewer street grate on Villa Street. The Public Works Department staff is currently identifying possible 2017 overlay projects by reviewing the overall condition index (OCI) of all City streets using data collected by the State of Iowa Transportation Department and imported into our Cartegraph Asset Management System. Once this review is completed, information from our asset management system and staff inspections will be used to develop the five-centerline mile 2017 Public Works Department asphalt overlay maintenance program. In February, staff will meet with other City departments and private utilities to coordinate projects and eliminate any streets that may have a known future project that would affect the life of a previously improved street. The expected life of this type of overlay project is ten years. In March, a recommended project will be submitted to the City Manager for approval. As in calendar year 2016, the City will attempt to identify budget savings to finance increasing the 5-centerline miles in 2017 to 7.5 miles. Five Flags Study An RFP for the Five Flags Study and Assessment was approved by the City Council and released. Proposals were due December 29, 2017. A review committee is currently reviewing the proposals and interviewing with prospective firms. A recommendation will be forthcoming in late February to the city council with a final report due to the City Council in late summer. City-Wide Flower Planting Program Staff is currently near completion of a comprehensive report regarding the HWY 20 corridor rose plants. The report will include a recommendation for hiring of a consultant to do an assessment of the roses and Hwy 20 plantings. There is funding for this study in the current budget. City staff have completed a report for the Grandview Avenue Boulevard maintenance. The report includes a safety study related to visibility. It also makes maintenance recommendations for all the peony, annual and perennial plant beds. There are no changes to the operating budget and positions will remain frozen in Fiscal Year 2018, so the department will continue with its self-imposed freeze of a part time secretary position. This allows that funding to be used toward contracting to assist in the parks division duties and maintain the flowers and landscape areas. This self- imposed freeze means that the Leisure Services Manager is short secretarial staffing for her assignments as well as other administrative staff in Leisure Services reducing effectiveness. 40 Community Health Needs Assessment Plan Including Mental Health Over the past several months, Public Health Specialist Mary Rose Corrigan has researched the mental health services access to care system along with the needs being identified by various sectors in the community. The mental health/disability services of the East Central Region (ECR) is a nine-county region working together to offer services to individuals with mental health needs. The region consists of Benton, Bremer, Buchanan, Delaware, Dubuque, Iowa, Johnson, Jones, and Linn Counties and was formed under Iowa Code Chapter 28 E to create a mental health and disability service region in compliance with Iowa Code 331 .390 and Iowa Administrative Code 441-25. The region recently released its annual report and highlighted the services it provided in FY16 including meeting access to care standards, providing additional core services (their availability and plans for expansion), and provider education for practices and competencies. Current gaps noted in the report include: • Expand the WARM (phone) line hours • Transportation, especially in rural areas • Step-down beds • Staff turnover • Housing (although Dubuque fares well in this area) • Employment After speaking with the ECR Director, Michelle Dont and Dubuque County Mental Health Administrator, Jody Jansen, support is needed for the following. • Jail diversion • Communicating ECR Services • Identifying businesses with vocational opportunities • Securing additional crisis beds • Supporting tele-health to provide greater access to psychiatrists • Qualified staff for community living homes The ECR strives to work in a quality improvement partnership with stakeholders in the region, including providers, families, individuals, and partner health and human service systems, to develop a system of care approach that is characterized to develop a system of care approach. Recently, the Community Foundation of Greater Dubuque and the United Way of Dubuque Area Tri-States partnered with Project HOPE to develop a Community Needs Assessment for mental health services. Project HOPE identified mental health as a pressing need to barriers and opportunities in Dubuque. The Needs Assessment will be discussed and released on February 9, 2017. The Dubuque County Community Health Needs Assessment and Health Improvement Plan (CHNA-HIP) identified mental health as a need in the community, particularly 41 through a community-wide survey and public input sessions. One goal in the "Transitions of Care" section is to increase access to care for mental health services. GOAL: Increase access to care for mental health services. OBJECTIVE: Provide education to primary care providers to bridge medications for mental health patients until they can obtain an appointment with a psychiatrist. An annual update and report on the CHNA-HIP will be led by the Dubuque County Health Department in February 2017. Imagine Dubuque Imagine Dubuque, the campaign for the new City of Dubuque Comprehensive Plan began in July 2016 and is scheduled to conclude in October 2017. Inclusive, comprehensive, and tailored community engagement is a priority of City Council and identified as a key strategy toward creating a plan that is reflective of our community. Residents have a variety of ways to share their ideas on how we can make Dubuque a more viable, livable and equitable community. To date, city staff and project consultants have developed and hosted a website, App, events, focus groups, presentations and interviews using multiple engagement tools. Over 200 interviews with community stakeholders have been conducted. Over 10 focus group meetings and workshops have been held with community partners. The project has had a presence in our schools, board rooms, community events and neighborhoods. The results to date are encouraging. The website and App have received over 6,500 page views and over 1 ,700 visitors. We have received over 2,500 ideas because of our engagement strategies and data received to data is showing our input is reflective of the community. The project is halfway complete and more community engagement events are planned through June of 2017. The project website and app will remain a resource for the duration of the project. Presentation of a draft plan to City Council is scheduled for August 2017. Government Transparency In April of 2016, City staff hosted five events focused on gathering public input around the Council Goals and Priorities. In November 2016, City staff hosted two evening public budget input meetings at St. Mark's Community Center and the City Council Chambers in the Historic Federal Building. During November 2016, an online survey was made available to the public to submit budget input. By December 19, 2016, a total of 30 community members shared their budget input. Out of the 30 community participants, staff reached 17 individuals through the in-person meetings and 13 participants took the online survey. 42 The input provided has been analyzed by City staff and evaluated by the City Manager for inclusion in the Fiscal Year 2018 budget recommendation as deemed appropriate, consistent with City Council priorities. One of the more significant impacts was the input about the condition of tennis courts and the recent popularity of Pickle Ball. In the current year budget (Fiscal Year 2017) the resurfacing of tennis courts was $35,000 in Fiscal Year 2017 and the Fiscal Year 2018 recommendation has $80,000 in Fiscal Year 2018. During Fiscal Year 2016, the City launched a web based open data platform which can be found at http://dollarsandcents.cityofdubugue.org. The City of Dubuque's Open Budget application provides an opportunity for the public to explore and visually interact with Dubuque's operating and capital budgets. This application is in support of the five- year organizational goal of a financially responsible city government and high- performance organization and allows users with and without budget data experience, to better understand expenditures in these categories. During Fiscal Year 2017, an additional module was added to the open data platform which included an interactive checkbook which will allow citizens to view the City's payments to vendors. The final step will be adding performance measures to the open data platform to allow citizens to view outcomes of the services provided by the City. Conclusion I think what President Teddy Roosevelt once said about the country can translate to a city, "We are not building this land for the day, but for the ages." There will be six City Council special meetings prior to the adoption of the Fiscal Year 2018 budget before the state mandated deadline of March 15, 2017. I want to thank Budget Director Jennifer Larson, Assistant City Manager Cindy Steinhauser, Senior Budget Analyst Alexis Steger, 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.. p �� / ! /.'r l�t�C !/wl A Michael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director 43 CITY OF DUBUQUE, IOWA Fiscal Year 2018-2022 Capital Improvement Program (CIP) TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Attached is the Fiscal Year 2018-2022 Capital Improvement Program (CIP). State law requires that a five-year CIP be adopted by the City Council after a public hearing. The required CIP public hearing will be held March 7, 2017, at the same time as the public hearing on the Fiscal Year 2018 Operating Budget. The CIP, as the plan for the City's physical development effort, attempts to address a variety of needs that the City must meet if it is to maintain its physical facilities, meet its service commitments and provide for its future development. The CIP recommendation reflects the City's comprehensive plan and the goals and priorities established by the City Council and are shown in each of the State mandated budget program areas. The Fiscal Year 2018 CIP budget recommendation of$40,268,319 is a 37.89% decrease from the Fiscal Year 2017 CIP budget of$55,526,257. For several years, the Mayor and City Council has been taking advantage of the historically low interest rates and investing in City infrastructure and economic development and redevelopment. At the 2015 City Council Goal Setting in July and August, the Mayor and City Council adopted debt reduction as a High Priority. This budget recommendation reflects that debt reduction priority. While the City will be issuing $3,253,487 in new debt in the recommended five-year CIP, mostly for Fire truck and pumper replacements, the City will also be retiring $87,845,970 of existing debt, reducing the amount of City debt by $54,927,964. In the current fiscal year (Fiscal Year 2017), the City is at 70.59% of the statutory debt limit. By the end of this five-year CIP in Fiscal Year 2022, the City is projected to be at 42.85% of the statutory debt limit. By Fiscal Year 2027, the City is projected to be at 24% of the statutory debt limit. Part of the current fiscal year (Fiscal Year 2017) debt issuance is refinancing previous debt which will save the City over one million dollars in interest payments. In this extremely low interest rate environment, the City had been increasing the use of debt to accomplish the projects that need to be done. This was a strategic decision by the City Council realizing that infrastructure investment just gets more expensive over time for these reasons: a) the older a piece of infrastructure gets and the more it is allowed to deteriorate increases costs; b) the longer the wait to invest in infrastructure the costs are increased by inflation; and c) If the investment in infrastructure is not made in this low interest rate environment this investment will eventually need to be made when interest rates are higher, thereby increasing costs. However, beginning in FY 2016 the City Council at their 2015 Goal Setting Session in July and August debt reduction was adopted as a High Priority. So the amount of outstanding debt will begin to decrease and going forward the City will be issuing less debt each year than is retired and many projects will become pay-as-you-go. The debt principal outstanding projected as of June 30, 2017, is currently $290,115,140. The breakdown of the debt principle outstanding as of June 30, 2017, is as follows: Principle Outstanding Debt Obligation 6/30/17 General Obligation Essential Corporate Purpose $104,635,006 Tax Increment Notes and Bonds $20,969,010 Economic Development TIF Rebate Agreements $16,475,375 General Fund Leases $155,000 Other Revenue-Backed Loans $4,000,000 Total Indebtedness Subject to Statutory Debt Limit of$207,174,109 $146,234,391 Percent of Statutory Debt Limit Used as of June 30, 2017 70.59% Revenue Bonds $123,080,749 Debt Subject to Annual Appropriation 1$20,800,000 Total City Indebtedness as of June 30, 2017 1$290,115,140 In Fiscal Year 2018, there is anticipated to be an additional $4,533,658 in debt issued and $17,696,370 in principal of existing debt reduced for a debt reduction of$13,162,712. Of the $4,533,658 in new debt, $408,000 would apply against the statutory debt limit and $12,542,918 in principal retired will be applied against the statutory debt limit. In Fiscal Year 2019, there is anticipated to be an additional $7,893,417 in debt issued and $17,561,626 in principal of existing debt reduced for a debt reduction of$9,668,209. Of the $7,893,417 in new debt, $229,075 would apply against the statutory debt limit and $11,220,145 in principal retired will be applied against the statutory debt limit. In Fiscal Year 2020, there is anticipated to be an additional $721,412 in debt issued and $18,160,278 in principal of existing debt reduced for a debt reduction of$17,438,866. Of the $721,412 in new debt, $721,412 would apply against the statutory debt limit and $11,155,622 in principal retired will be applied against the statutory debt limit. In Fiscal Year 2021, there is anticipated to be an additional $75,000 in debt issued and $17,928,866 in principal of existing debt reduced for a debt reduction of$17,853,866. Of the $75,000 in new debt, $75,000 would apply against the statutory debt limit and $10,789,960 in principal retired will be applied against the statutory debt limit. - ii - In Fiscal Year 2022, there is anticipated to be an additional $1,530,000 in debt issued and $16,498,830 in principal of existing debt reduced for a debt reduction of$14,968,830. Of the $1,530,000 in new debt, $1,530,000 would apply against the statutory debt limit and $9,219,319 in principal retired will be applied against the statutory debt limit. There was a 0.90% increase in assessed value effective January 1, 2016, which is the assessment the Fiscal Year 2018 statutory debt limit is based on. The statutory debt limit effective June 30, 2018, is $209,048,707. The City will be at 64.54% of statutory debt limit by June 30, 2018. The ten year history of the City's use of the statutory debt limit is as follows: FY 08 FY 09 FY 10 FY 11 FY 12 1 FY 13 1 FY 14 1 FY 15 1 FY 16 1 FY 17 43.47% 43.82% 54.38% 64.14% 69.69% 1 84.31% 1 83.87% 89.89% 1 86.13% 70.59% The five year projection of the City's use of the statutory debt limit from Fiscal Year 2018 —2022 including all planned debt issuances subject to the statutory limit and assuming a 2% growth in the City's assessed valuation beginning in Fiscal Year 2018 is as follows: FY 18 FY 19 FY 20 FY 21 FY 22 64.54% 58.34% 52.61% 46.93% 42.85% The following chart shows a comparison of the statutory debt limit for the eleven largest cities in Iowa. The most recent information available for outstanding debt for the other large cities is Fiscal Year 2016. - iii - Rank city Legal Debt Limit Percentage of (5%) legal debt limit utilized 11 Des Moines 536,568,585 73.67°/ 10 Davenport 318,401,799 69.34°/ 9 Sioux City 196,822,505 66.92°/ 8 Ankeny 207,319,915 64.79°/ 7 Dubuque(FY18) 209,048,707 64.54% 6 Cedar Rapids 490,817,852 59.30°/ 5 Waterloo 185,009,345 54.11 °/ 4 Ames 189,690,116 36.28°/ 3 W. Des Moines 320,461,851 35.60°/ 2 Iowa City 247,527,890 23.380 1 Council Bluffs 229,943,028 19.180 - iv - The following chart shows the projected percentage of statutory debt limit used in the Fiscal Year 2018 recommended budget as compared to the adopted Fiscal Year 2016 budget. This shows that by Fiscal Year 2027 the City will be at 32.05% of the statutory debt limit. Statutory Debt Limit Use (as of June 30th) 100% 90.49% 90% 89.890o 7.49% 86.1 00 80% 82.0300 8.83% 9.42% 4.47% 70% 70.59% 1.74% 0 0 5 o 66.04% 65.91% 66.23% 60% 58.340o 52.6100 50% 46.930o 42.85 o 40% 39.05 o 35.20 o 30% 31.47 o 27.48 o 23.73 o 20% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY18 Recommend FY16 Adopted -v- The following chart shows the total amount of debt in the Fiscal Year 2018 recommended budget as compared to the adopted Fiscal Year 2016 budget. Total Debt (In Millions) $320 $309.1 302.3 $300 90.1 $295.6 $295.5 282.0 $280 $290. $279.9 $281. 2 ' $265. 267.4 $260 257. 255.9 $240 $240. $244.3 241.4 $227. $226.2 $220 $212. $200 $196. $180CiAn $160 $162. $145. $140 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 —� FY18 Recommend FY16 Adopted - vi - The Fiscal Year 2018 budget recommendation anticipates the following contribution to the general fund reserve after the $600,000 contribution in Fiscal Year 2017: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total Contribution $1,000,000 $600,000 $600,000 $500,000 $500,000 $500,000 $500,000 $3,200,000 • of Projected Revenue 20.31%1 16.75%1 17.71%1 18.50%1 19.28%1 20.05%1 20.152/ — • of Projected Expense 15.66%1 15.79%1 17.74%1 18.39%1 19.04%1 19.72%1 19.51°/ — Moody's Investor Service recommends a factor of 20 percent of general fund operating revenues for "AA" rated cities. The City has a General Reserve policy which states the City will maintain a minimum fund balance of at least 10 percent of the sum of (a) annual operating expenditures not including interfund transfers in the General Fund less (b) the amounts levied in the Trust and Agency fund and the Tort Liability Fund ("Net General Fund Operating Cost"). The planned contribution in Fiscal Year 2016 was $600,000, but the City was able to contribute $1 million. The City will continue making an additional contribution to the general fund reserve of a minimum of$500,000 each year until the City meets Moody's guideline of 20 percent of general fund operating revenues consistently. While this chart shows a steady increase in general fund reserves as a percent of general fund revenue from 16.75 percent in Fiscal Year 2017 to 20.15 percent in Fiscal Year 2022, there will be an evaluation each year to determine the feasibility of increasing the contribution and reaching the 20 percent. In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve level in Fiscal Year 2022. Now this projection is this level will be reached in Fiscal Year 2021, one year ahead of schedule. There is $1,590,724 in planned debt for projects budgeted in FY 2017 that has been delayed and will be issued in FY 2018, which includes New Terminal Taxiway F ($298,237); Skate Park ($547,813); and Flora Park Restroom ($86,500). During the Fiscal Year 2018 budget process, the following projects were originally planned to be funded by debt but most are now recommended to be pay-as-you-go projects: -vii - Project Debt Eliminated Pay-As-You-Go Amount Water Main Replacement $761,050 $200,000 Water Tank Storage Coating $1,542,700 $245,000 Cedar and Terminal Mains and Lift $330,000 $785,000 Harlan and Euclid Sanitary $75,000 $75,000 Hempstead Sanitary $300,000 $0 I&I Reduction Program - Sanitary $280,000 $340,000 Relocation of 30" Old Sanitary Old Garage $665,000 $0 Sanitary Sewer Lining Program $1,240,000 $839,000 Sanitary Sewer Manhole Program $864,000 $271,000 Street Program Sewer $50,000 $0 Perry & Bradley Force Main $260,000 $0 Marquette Place Sewer $225,000 $225,000 Catfish Creek Interceptor Sanitary $300,000 $0 W&RRC Final Clarifier $49,000 $41,120 W&RRC Nutrient Reduction $1,700,000 $70,000 Locust Parking Ramp Repairs $315,000 $585,000 Parking Meter Replacements $300,000 $550,000 Total $9,256,750 $4,226,120 The five-year CIP adopted through the current year (Fiscal Year 2017) budget process covered Fiscal Year 2017 through 2021 and is $177,319,585. The recommended five-year CIP for the upcoming budget process (Fiscal Year 2018) will cover Fiscal Year 2018 through 2022 and would be $152,742,273 if adopted as recommended. This is a $24,577,312 (16.09%) decrease. -viii - FY 2017-2021 Capital Improvement Program compared to the FY2018-2022 Capital Improvement Program is as follows: FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total FY17 CIP $55,526,257 $29,520,001 $20,812,978 $45,284,658 $26,175,691 - $177,319,585 FY18CIP - $40,268,319 $41,734,205 $26,752,636 $22,683,920 $21,303,193 $152,742,273 $ Difference - +$10,748,318 +$20,921,227 -$18,532,022 -$3,491,771 - -$24,577,312 Change 1 1+33.13% +50.13% -69.27% -15.39% 1 - -16.09% The following capital projects are new or increased from the planned FY 2017 five-year Capital Improvement Program (additional detail on changes in CIP projects can be found on pages xiii-xvii): Project FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Change Change Change Change Change 17th Street Storm Sewer Improvements $2,250,000 $1,745,000 $906,000 22nd Street Storm Sewer Improvements $1,410,000 6,654,000 3,186,000 North End Storm Sewer Improvements -$1,341,000 Flood Control Maintenance Facility -$3,150,000 -$450,000 $4,100,000 Bee Branch Creek Project $10,990,000 $11,477,750 -$16,608,700 $2,530,000 Storm Sewer General Repairs -$150,000 -$185,000 -$188,700 -$13,700 $100,000 Gunite/Replacement Storm Sewers -$60,000 -$120,000 Cedar Cross Road Storm Sewer -$118,800 Temporary Flood Control Units -$295,500 -$90,500 $386,000 Salt Storage Building $354,500 Relocate D-Marc to New Terminal $186,000 Replace Airport Snow Removal Equipment -$1,744,000 $1,740,750 Rehabilitate TaxiwayA -$271,200 -$3,539,688 -$1,846,688 $271,200 Trails and Complete Streets -$10,000 $487,000 $190,000 $732,000 $200,000 Sanitary Sewer External Extensions - Annexation -$216,000 -$116,000 -$116,000 -$71,000 Hempstead Sanitary Sewer Reconstruction -$250,000 Catfish Creek Interceptor Sewer 1 -$100,000 -$100,000 -$100,000 Cedar & Terminal Lift Stations & Force Main 1 $655,000 -$100,000 -$100,000 Sanitary Lining Program 1 1 -$260,000 -$251,000 ix - Project FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Change Change Change Change Change Tamarak Park Frontage Water Main -$546,000 $400,000 $150,000 Southwest Arterial Water Main Extension -$3,038,750 North Cascade Road Reconstruction -$654,000 -$702,800 Highway 52 Phase 4 $1,923,000 -$1,871,000 -$52,000 Grandview& University Roundabout $250,000 $900,000 East -West Corridor Capacity Improvements $229,000 -$444,000 $1,796,000 Water Main Replacements -$169,050 -$362,250 -$30,000 -$586,500 English Ridge Water Main -$330,000 $330,000 Water Storage Tank Coating System -$545,000 -$62,680 -$701,200 -$89,350 $50,000 Annexation Study and Implementation -$200,000 West End Annexation Phase II -$200,250 West Side Water System $4,396,500 High Strength Waste Receiving and Storage $10,000 $522,155 $961,795 Nutrient Reduction - Basin Modifications -$780,000 -$425,000 -$425,000 Alternative Oxygen Study Implementation $150,000 $1,068,265 Bunker Hill Replace Irrigation System -$254,132 Ladder Truck & Pumper Replacement $8,000 $441,334 $1,530,000 Homeownership Grants -$250,000 -$250,000 -$350,000 $50,000 $1,582,928 Historic Millwork District Subarea Building Incentive -$30,000 -$10,000 -$680,000 $70,000 Mooring Dolphin Installation Project -$212,230 Federal Building Renovation -$59,000 $50,000 $17,000 $575,000 $120,000 Bunker Hill Golf Course Replace Irrigation -$254,132 Bus Storage Maintenance Facility $310,000 Total $9,425,950 $21,863,070 -$18,084,683 -$2,716,883 $11,426,923 -x - Fiscal Year 2018 will be the tenth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low-to-moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2018 Stormwater User Fee is proposed to increase from $6.81 per SFU to $7.27 per SFU, a 6.75% increase, consistent with Ordinance 16-14 passed on March 5, 2014. FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Adopted Per $8.50 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 Ordinance 21-12 Adopted Per $6.38 $6.81 $7.27 $7.76 $8.29 $8.85 $9.00 Ordinance 16-14 % Decrease From -24.94% -24.33% -19.22% -13.78% -7.89% -1.69% 0% Ordinance 21-12 The recommended rates for FY16 through FY20 reflect the rates previously established by Ordinance 16-14 following the State's approval of $98.5 million in State Flood Mitigation state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. Ordinance 21-12 was the ordinance adopted prior to the City receiving the Flood Mitigation grant. The Stormwater Utility was formed on July 1, 2003, to update the City's aging infrastructure and implement the City of Dubuque Stormwater Management Plan, which consists of the Bee Branch Watershed Flood Mitigation Project. It is a multi-phased, fiscally responsible investment. It reflects a holistic approach to mitigate flooding as it will also improve water quality, stimulate investment, and enhance the quality of life. Having secured the necessary federal and state funding approvals, permits, and funding, Dubuque has pushed forward with planning, execution, and completion of three phases and the initiation of three more. The phases of the Bee Branch Watershed Flood Mitigation Project are as follows: DescriptionPhase 1 Carter Road Detention Basin Complete 2 West 32° Street Detention Basin Complete 3 Historic Millwork District Complete 4 Lower Bee Branch Creek Restoration Under Construction 5 Flood Mitigation Gate Replacement Under Design 6 Impervious Surface Reduction Under Construction 7 Upper Bee Branch Creek Restoration Under Construction 8 22° Street Storm Sewer Improvements Under Design 9 Flood Mitigation Maintenance Facility Under Design 10 North End Storm Sewer Improvements Under Design 11 Water Plant Flood Protection Under Design 12 17 Street Storm Sewer Improvements Under Design -xi - In FY 2017, additional projects were added through the budget amendment process as the City learned late in the process of the award of a $31.5 million HUD Resiliency grant for the Bee Branch Watershed. Individually, the 12 phases of the project may provide some benefit. But flash flooding can be expected to occur until all of the improvements are implemented. But it is also true that with the completion of each subsequent phase, the threat of flash flood damage is lessened and the resulting damage will be mitigated. Because of the public support for the Bee Branch Watershed Flood Mitigation Project, the stated commitment of the City of Dubuque City Council to implement the various phases of the project, and because the City has already started implementing some of the improvements, private investment in the Bee Branch Watershed has already eclipsed $139 million since 2008 with an additional $215 million expected to follow in the next five years for a combined total of$354 million in private investment. This non-public investment by private developers includes an estimated $258 million for the rehabilitation of Caradco, Novelty Ironworks, Betty Building, Voices Building, Power Plant, Foundry, Farley Loetscher, Kirby Building and Wilmac Building all located in the Historic Millwork District; $15.1 million of non-public investment in the Washington Neighborhood related to Community Housing Initiatives Acquisition & Redevelopment, St. Mary's Campus, Corner Grill, Rusk Building, Conlin Building, Welu Building, Richards Building, High Building, Streinz Building, Widmeier Building and Engine House; and $2.3 million in non-public investment in the Downtown Neighborhood related to the Babler Building, 324-326 West Locust Street, 346-348 West Locust Street and 407-409 Loras Boulevard. The CIP budget reflects the Dubuque Five-Year(2018-2022) City Council Goals and 2016-2018 Policy Agenda. Five-Year Community Goals for a Sustainable Dubuque Economic Prosperity Environmental Integrity Social/Cultural Vibrancy Five-Year City Goals Planned and Managed Growth Partnering for a Better Dubuque Improved Connectivity—Transportation and Telecommunications Five-Year Organizational Goal Financially Responsible City Government and High Performance Organization Policy Agenda 2016 - 2018 Top Priority (in alphabetical order) • Central Iowa Water Association: Resolution • East-West Corridor Study Implementation • Inclusive Dubuque Action Plan • Master Plan for Chaplain Schmitt Island • River Cruises Docking Facility -xii - High Priority • 21 st Century Policing Action Plan • Citywide Flower-Planting Program • Community Health Needs Assessment Plan Including Mental Health • Five Flags Center Study • Street Maintenance Program • Traffic Signal Synchronization Citywide Attachment 3 provides a summary of these projects organized by City Council's five-year goals and Fiscal Year 2018 priorities reflect how these goals are addressed. Finally, Attachment 4 provides detail on the source of funds and highlights important points about the 5-year CIP Program. -xiii - CIP FORMAT The format for the Fiscal Year 2018-2022 CIP is substantially the same as previous fiscal years. First, an index referencing the 2018-2022 Capital Improvement Budget follows the budget message. The index identifies each capital improvement first by city department and then by all applicable State programs as a subcategory under each department. The index serves as a quick reference for each CIP, and the far right hand column shows the page number of each project. Secondly, a separate project page is provided to show the detail for each individual project. These projects pages are also arranged first by city department and then by State program as a subcategory within each department. As in previous CIP budget documents, each detailed project page identifies the city department, the State program, project title, account code (consisting of program number, department number, fund and capital project number), and total project cost. The project page then shows any funds expended for the project in Fiscal Year 2016 and the amended budget in Fiscal Year 2017. In Section A of the project form entitled "Expenditure Items", project costs are shown by major expenditure item (i.e., Design and Engineering, Land and Right-of-Way Purchase, Construction and Other Expense). In Section B, entitled "Project Financing", the project funding is presented by major revenue source (i.e., General Fund, Sales Tax Fund, Water Depreciation Fund, Sanitary Sewer Construction Fund, and Road Use Tax Fund). In Section C, entitled "Impact— Operations," the dollar impact on operations in terms of greater or lesser operating costs and/or greater or lesser revenue is provided when available. Lastly, there is a narrative section, which provides a description of the project, a justification for the project and, where appropriate, how it relates to other projects or plans. A small map may also be provided to further identify the location of the project. -xiv - CONCLUSION The Capital Improvement Program represents the City of Dubuque's commitment to a maintenance and physical development plan for the next five years. The first year of the five-year CIP goes into the budget for next year and deserves the most attention. As you know, the CIP is updated each year so that City Council will have an opportunity in the next year to change Fiscal Year 2018 through Fiscal Year 2021 projects, as well as to add projects for Fiscal Year 2022. -xv- To meet City Council Goals and Priorities and address City needs, many new projects ($20.4 million) appear in the five-year CIP: Fire: Mechanical & Electrical System $ 115,000 Fire Station Structure Repairs $ 18,000 Fire HQ Shower Replacement $ 52,530 Parks: Comiskey Park New Entrance $ 30,147 Comiskey Park Amenities $ 59,595 Comiskey Security Alarm $ 10,000 Comiskey Sidewalk Lighting $ 100,000 Comiskey Landscape Improvements $ 50,000 EPP Paint Pavilions $ 22,760 EPP - Riverfront Pavilion Restoration $ 5,000 Flora Playground Equipment $ 30,338 Flora - Replace Tennis Court Lights $ 102,000 Hilltop - Replace Play Unit $ 60,000 Madison Park Fencing $ 5,220 Marshall Park Pool Repair $ 18,721 Marshall - Repave Roads $ 80,000 Murphy Park Equipment $ 82,125 Murphy Park Replace Water Lines $ 10,000 Restroom Electric locks $ 25,000 McAleece Relocate Scoreboard $ 10,000 Port of Dubuque Welcome Sign $ 30,000 Civic Center: Locker/Shower Facilities $ 13,000 Seal Concrete Walkways $ 16,737 Floor Scrubber Replacement $ 10,000 Table Replacement $ 41,000 Arena Paint Ceiling $ 79,311 Arena Pipe, Drape & Barricades $ 10,000 Arena Roof $ 384,227 Arena Remodel Dressing Rooms $ 30,000 Theater Renovate Dressing Rooms $ 48,000 Theater Scene Shop Ramp Removal $ 30,000 Theater Upgrade Counter Weight System $ 87,000 Recreation: Outdoor Aquatic Master Plan $ 40,000 -xvi - Conference Center: North Parking Lot Pavement Repair $ 55,000 Replace Decorative Concrete $ 100,000 Replace Sink Light Fixture $ 22,000 Replace Clouds $ 79,000 Exhibit Hall Concrete Renovation $ 24,000 Replace Digital Indoor Signs $ 71,700 Library: New Water Pipe in Basement $ 85,590 Water: South End Water Main Loop $ 155,000 West Side Water System $ 4,396,500 Water & Resource Recovery Center: High-Strength Waste Receiving & Storage $ 1,583,950 Alternative Oxygen Study & Implementation $ 1,218,265 Airport: Replace Garage Door $ 57,229 Auto Fuel Tank & Dispenser $ 89,125 New Terminal Entrance Road Sign $ 120,000 Replace Doors at Jet Center $ 30,000 Cap Off Old Wells $ 28,000 Relocate D-Marc to New Terminal $ 186,000 Security Camera & Equipment $ 85,000 Public Works: Port of Dubuque Irrigation Replacement $ 40,000 Pipeline Inspection Equipment Upgrade $ 22,700 Stormwater: Pennsylvania-Middle Road Culvert Replacement $ 150,000 US-52 11th &White Street $ 200,000 US-52 Central Avenue $ 100,000 Streets: Grandview& University Roundabout $ 1,150,000 Paint Third Street Overpass Railing $ 100,000 Engineering: Riverfront Dock Expansion $ 150,000 Industrial Site Redevelopment Study $ 25,000 Economic Development: Dubuque Industrial Center West Signs $ 100,000 Downtown Rehab Grant Program $ 200,000 Development of Graf Properties $ 200,000 Develop McFadden Property $ 200,000 Transit: Radio Replacements $ 95,000 Housing: Bee Branch Healthy Homes Resiliency Grant $ 7,450,000 City Manager's Office: Aerial Orthophotography $ 30,000 -xvii - Information Services: Wireless Access Controller $ 12,250 Annex 2nd Floor Low Voltage Expansion $ 27,800 VMWare Enterprise Plus Licensing $ 40,000 The Capital Improvement requests that were previously funded in the five-year CIP that are not included in this five-year CIP ($4,104,546) are as follows: E911: Alarm Monitoring System $ 203,940 Parks: Hwy 20 Roses $ 53,000 Replace Marquee $ 100,000 Five Flags: A/C Replacement - Office $ 22,600 Grand River Center: Chairs/Podium Replacement $ 225,000 Recreation: Bunker Hill Irrigation $ 254,132 Airport: Repaint Hangar Exteriors $ 30,000 New Terminal Landscaping $ 75,000 HVAC Replacement Administrative Office $ 13,250 Public Works: Mooring Dolphin Install Project $ 212,230 MSC Lighting Retrofit Project $ 22,400 Transit: Vehicle Replacement $ 1,075,194 City Manager's Office: Augmented Data Support Services $ 85,000 Stormwater: Bennett Street Storm Sewer $ 61,000 Bunker Hill Golf Storm Replacement $ 90,000 Cedar Cross Storm Sewer $ 118,800 Gunite Rock Storm Sewer $ 180,000 Pennsylvania Culvert Replacement $ 91,500 Windsor Storm Extension $ 78,500 Sanitary Sewer: Hempstead Sanitary Sewer Reconstruction $ 300,000 Laterals Replacement Assistance $ 60,000 Lateral Connection Assistance $ 80,000 Street Program Related Sanitary Sewer $ 50,000 Perry & Bradley St Force Main Improvement $ 260,000 Connect Fees Business Assistance $ 63,000 Catfish Creek Interceptor $ 300,000 -xviii - In addition a total of 32 CIPS that were previously funded in the five-year CIP were reduced by $18.3 million in funding in this CIP. Projects impacted by reduced funding include: Fire: ADA Compliance All Stations $ 46,000 Parks: Parks - Replace Trash Cans $ 10,000 Civic Center: Accessibility Building Modifications $ 50,000 LED Lighting Retrofits $ 144,000 Conference Center: Replace Carpet $ 89,000 Replace Fabric Wall Covering $ 20,000 Kitchen Equipment Replacement/ Rebuild $ 169,000 Water: Water Main Replacements - Streets $ 1,147,800 Water Storage Tank Coating Program $ 1,348,230 Southwest Arterial Water Main Extension $ 3,038,750 Water Main Replacements - Sewer Consent Decree $ 135,800 Water& Resources Recovery Center: Nutrient Reduction -Basin Modifications Phase I $ 1,630,000 Airport: Rehabilitate Taxiway A $ 5,386,376 Sanitary Sewer: Sanitary Sewer Lining Program $ 401,000 Sanitary Sewer Manhole Replacement/Rehabilitation $ 377,000 EgA&Try Sewer External Extensions -Annexation $ 791,500 Stormwater: Stormwater Infiltration & Inflow Elimination Program $ 269,000 Catch Basin Reconstruction $ 119,980 Storm Sewer Improvements/Extensions $ 150,000 Storm Sewer General Repairs $ 537,400 Draintile Program $ 39,590 Streets: Decorative Concrete Maintenance $ 75,000 North Cascade Road Reconstruction $ 1,356,800 Engineering: Riverfront Leasehold Improvements $ 10,000 Traffic: Signalization Program $ 10,000 Street Light Replacement $ 29,000 Traffic Signal Controller Replacement $ 30,000 Economic Development: Washington Neighborhood Fagade Program $ 20,000 Historic Millwork District Subarea Building Incentive & Rehabilitation $ 650,000 -xix - Washington Neighborhood Subarea Building Incentive & Rehabilitation Program $ 160,000 Transit: Bus Stop Improvements $ 10,000 Housing & Community Development: Washington Neighborhood Home Purchase Program $ 53,815 As is the case every year, there were new projects requested that were not able to be included in whole or in part in this five year CIP ($25.8 million). CIP requests that were not funded include: Five Flags: Replace Marquee on Locust Street $ 100,000 Replace Portable Chairs $ 70,000 Arena Scoreboard $ 63,000 Arena Airwall Replacement $ 250,000 Arena Concert Sound Equipment $ 200,000 Modernize Elevator $ 180,000 Satellite Ticket Booth Main Street $ 55,000 Theater Install Orchestra Pit Lift $ 242,000 Theater Replace Stage Floor $ 57,000 Park Improvements: Parks Irrigation to Planters $ 80,000 Miller Park Pave Roads and Campsites $ 100,000 Avon Park Replace Play Unit $ 60,000 Storybook Zoo Playground Replacement $ 80,000 Eagle Point Park Access Walkway $ 356,000 Usha Park Development $ 115,000 Jefferson Park Retaining Wall Replacement $ 332,000 Greenhouse Remove Trees on Hillside $ 25,000 Eagle Point Park Light Trolley Line Trail $ 92,000 Eagle Point Park Wading Pool Replacement $ 407,000 Roosevelt Park Redevelopment $ 228,500 Eagle Point Park Renovate Log Cabin Pavilion $ 111,000 Develop Dog Park $ 125,000 Welcome Sign North $ 60,000 Welcome Sign East $ 60,000 Maintenance Headquarters Storage Area $ 85,000 Marshall Park Replace Play Unit $ 150,000 -xx- Granger Creek Nature Trail $ 260,000 Valentine Park Pavilion Installation $ 55,000 Eagle Point Park Replace Water Lines $ 110,000 Catfish Creek Trail $ 225,000 Recreation: Bunker Hill Replace Irrigation System $ 254,132 Grand River Center: Paint Bridge $ 30,000 Paint Exterior Metal $ 95,000 Replace Outdoor Message Center $ 100,000 Replace Indoor Plants $ 12,000 Replace Exterior Building Sign $ 40,000 Security Cameras $ 70,000 Water: Roosevelt Road Main Extension $ 4,465,120 Water & Resource Recovery Center: Side Stream Phosphorous Removal $ 3,000,000 LIV Disinfection System Modifications $ 235,000 Outfall Manhole Reconstruction $ 400,000 Airport: Old Terminal Deconstruction & Removal $ 165,000 Extend Runway 18/36 $ 268,000 Sanitary Sewer: Twin Ridge Lagoon Abandonment $ 710,000 Couler Valley Interceptor Rehab $ 85,000 Wood Street Sanitary Sewer Replacement $ 110,000 Auburn & Custer Sanitary Sewer Replacement $ 316,400 Grove Terrace Sanitary Sewer Replacement $ 110,000 Heeb Street Sanitary Sewer Replacement $ 180,000 Annexation Study Implementation $ 100,000 Stormwater: Sylvan Drive Storm Sewer $ 55,000 Jackson Street Storm Sewer $ 30,000 Streets: Jackson Street 11th to 12th Reconstruction $ 320,000 Rockdale Road Reconstruction $ 1,056,900 14th Street Overpass Design $ 727,000 Seippel Road Reconstruction $ 1,380,000 Century Drive Reconstruction $ 1,850,000 Bennett Street Reconstruction $ 680,000 Heeb Street Reconstruction $ 250,000 Bies Drive Reconstruction $ 880,000 -xxi - Sylvan Drive Reconstruction $ 885,000 Traffic: Traffic Consultant Services $ 110,000 Century Drive & Cedar Cross Fiber/Cameras $ 83,500 West End Fiber/Camera Installation $ 117,000 Asbury Rd Fiber/Cameras $ 147,000 Hill Street Cameras $ 78,750 Economic Development: Future Industrial Park Acquisitions $ 2,000,000 Information Services: Layer 2 Redundant Network Switch $ 73,132 The CIP budget is the product of the hard work of a large number of people. It begins with department and division managers and their staff who prepared and updated the CIP requests. It extends to Boards and Commissions who review staff's recommendations and make modifications and establish priorities. I wish to express my thanks to all who were involved in preparing the Fiscal Year 2018-2022 version of the City's Capital Improvement Program. Special thanks go to Budget Director Jennifer Larson,Assistant City Manager Cindy Steinhauser, Senior Budget Analyst Alexis Steger, Office Manager Juanita Hilkin, Secretary Stephanie Valentine and Communications Assistant Natalie Riniker. I am proud of the work completed by City staff and the end-result. I hope after you have had an opportunity to review this document that you feel it is responsive to your priorities. -xxii - ATTACHMENTS - PROVIDE OVERVIEW OF THE FISCAL YEAR 2017-2021 CAPITAL IMPROVEMENT PROGRAM Attachment 1 FISCAL YEARS 2018-2022 CIP SOURCE OF FUNDS To finance the CIP projects, a variety of funding sources are used. The following table shows the source of funds for each year of the 5 year CIP. SOURCE OF FUNDS FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 TOTAL PERCENT IN CAPITAL BUDGET Current Revenue Rental Dwelling Rehab Loan Repayments 30,000 30,000 30,000 30,000 30,000 150,000 0.10% Homeownership Loan Repayments 9,200 9,400 9,600 10,000 10,200 48,400 0.03% Historic Preservation Loan Repayments 9,270 9,270 9,270 9,270 - 37,080 0.02% Downtown Loan Pool Revolving Fund-Repayments - 300,000 300,000 400,000 100,000 1,100,000 0.72% Golf Revenue 20,000 - 20,000 - 40,000 80,000 0.05% Subtotal Current Revenue 68,470 348,670 368,870 449,270 180,200 1,415,480 0.92% Cable TV 5,800 - 9,212 7,300 5,800 28,112 0.02% Internal Service Funds-City Garage 15,280 11,900 5,942 4,600 2,300 40,022 0.03% Landfill Fund 2,250 41,792 5,892 2,650 3,192 55,776 0.04% Parking Enterprise Fund 5,000 5,000 5,000 5,000 5,000 25,000 0.02% Solid Waste Collection 302,352 485,782 597,440 611,504 616,934 2,614,012 1.71% Sanitary Sewer Utility 1,972,969 712,241 1,250,281 1,036,030 1,298,187 6,269,708 4.10% Sewer Repayments-Lot Sales on Developments 65,000 191,000 - - - 256,000 0.17% Stormwater Utility Fees 474,735 176,485 864,530 962,143 1,372,014 3,849,907 2.52% Water Utility Fund 849,800 629,063 1,886,763 1,220,625 289,000 4,875,251 3.19% Current Revenue-Utility/Enterprise 3,693,186 2,253,263 4,625,060 3,849,852 3,592,427 18,013,788 11.80% Sales Tax 20% 1,237,511 1,295,715 1,105,529 1,043,793 970,420 5,652,968 3.70% Sales Tax 30% 3,361,720 2,493,575 2,381,676 2,752,976 2,682,352 13,672,299 8.95% SRF Bonds-Water Fund Abated 4,396,500 - - - - 4,396,500 2.88% SRF Bonds-Sewer Fund Abated 290,000 - - - - 290,000 0.19% SRF Bonds-Stormwater Abated 1,600,000 8,587,750 - - - 10,187,750 6.67% GO Bonds-Sales Tax 20% 408,000 174,075 721,412 - 1,530,000 2,833,487 1.86% GO Bonds-Parking - 55,000 - 75,000 - 130,000 0.09% Total Construction 11,293,731 12,606,115 4,208,617 3,871,769 5,182,772 37,163,004 24.34% Community Development Funds 604,879 383,994 299,794 299,794 301,394 1,889,855 1.24% -xxiii - SOURCE OF FUNDS FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 TOTAL PERCENT IN CAPITAL BUDGET FAA Total - 3,196,418 42,300 - 244,080 3,482,798 2.287 Federal HUD Resiliency Grant 14,700,000 11,330,000 1,990,000 2,530,000 - 30,550,000 20.00% Federal Lead Paint Hazard 851,500 267,660 - - - 1,119,160 0.73% Mitigation Grant Federal Transit Administration 309,125 321,156 630,281 0.41% Federal--STP Funds 1,780,000 2,344,200 2,479,000 1,806,000 1,746,000 10,155,200 6.65% Total Federal 18,245,504 17,843,428 4,811,094 4,635,794 2,291,474 47,827,294 31.31% Iowa Finance Authority 153,283 153,283 153,283 153,283 153,283 766,415 0.50% Road Use Tax 1,408,455 1,117,268 350,551 275,141 146,494 3,297,909 2.16% State Flood Mitigation Grant - 464,000 7,232,475 3,011,782 4,100,000 14,808,257 9.69% Cther State Funding- 276,660 2,108,500 215,000 657,000 225,000 3,482,160 2.28% IDCT&Trails Grants Total State 1,838,398 3,843,051 7,951,309 4,097,206 4,624,777 22,354,741 14.630/6 DRA-Gaming Receipts 97,985 145,508 195,951 247,388 249,862 936,694 0.61% DRA-Distribution of Surplus 1,185,587 11080,592 1,108,081 1,059,666 959,163 5,393,089 3.53% Total DRA 1,283,572 1,226,100 1,304,032 1,307,054 1,209,025 6,329,783 4.147/6 Greater Downtown TIF Payments 834,782 1,664,673 1,592,352 2,088,810 1,559,590 7,740,207 5.07% English Ridge Housing TIF Payments 12,000 138,000 330,000 480,000 0.31% Dubuque Industrial West TIF Payments 1,550,000 100,000 50,000 - 400,000 2,100,000 1.37% North Cascade Housing TIF Payments 692,497 1,284,315 838,885 1,223,720 1,113,4361 5,152,853 3.37% Total TIF Funds 3,077,279 3,048,988 2,493,237 3,450,530 3,403,026 15,473,060 10.13% Private Participation 272,100 70,200 214,482 70,200 70,200 697,182 0.46% Total Private 272,100 70,200 214,482 70,200 70,200 697,182 0.46% Homeownership Sale Proceeds 156,079 154,390 435,935 612,245 409,292 1,767,941 1.16% Ind. Parks Land Sales- Dubuque Industrial Center West 310,000 310,0001 310,000 310,000 310,000 1,550,000 1.01% Total Land Sales 466,079 464,390 745,935 922,245 719,292 3,317,941 2.17% Special Assessments 30,000 30,000 30,000 30,000 30,000 150,000 0.10% Total Spec.Assessment 30,000 30,000 30,000 30,000 30,000 150,000 0.10% GRAND TOTAL 40,268,319 41,734,205 26,752,636 22,683,920 21,303,193 152,742,273 100.0% -xxiv - Attachment 2 FISCAL YEAR 2018 - 2022 CIP BUDGET GROUPED BY STATE PROGRAMS The Fiscal Year 2018-2022 Capital Improvement Program totals $152,742,273. The following table summarizes expenditures for each State program by year. FISCAL YEAR 2018-2022 CIP CAPITAL IMPROVEMENT PROGRAM 5YEAR PERCENT PROGRAM FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 TOTAL OF TOTAL Public Safety 113,250 45,500 946,704 101,010 1,634,320 2,840,784 1.9% Public Works 12,805,191 12,578,339 5,832,482 5,180,207 5,544,854 41,941,073 27.5% Culture & Recreation 1,055,106 1,750,569 1,516,227 2,542,300 1,284,500 8,148,702 5.3% Community& Econ. Devl. 17,461,608 5,798,312 4,320,767 6,097,312 3,352,005 37,030,004 24.2% General Government 994,278 1,111,027 1,579,591 1,284,757 1,090,887 6,060,540 4.0% Business Type 7,838,886 20,450,458 12,556,865 7,478,334 8,396,627 56,721,170 37.1% TOTAL 40,268,319 41,734,205 26,752,636 22,683,920 21,303,193 152,742,273 100.0% The State Mandated Budget Program Areas and the City Departments/Activities that fall under each of these areas are as follows: Public Safety—Includes Police, Emergency Communication Center, Fire, Disaster Services, Health Services:Animal Control, Public Works: Flood Control, Building Services: Inspection Public Works—Includes Airport, Public Works, Engineering Health and Social Services—Human Rights, Health Services, Purchase of Services Culture and Recreation—Parks, Civic Center, Conference Center, Recreation, Library, City Manager: Cultural Affairs Community and Economic Development- Economic Development, Housing and Community Development, Planning Services, Purchase of Services, City Manager: Neighborhood Development General Government—Building Services: City Hall/Annex Maintenance/Grand River Center Maintenance, City Council, City Manager, City Clerk, Finance, Cable TV, Legal, Information Services Business Type—Water, Water Pollution Control, Parking Division,Transit, Public Works: Landfill, Engineering: Sewer, Stormwater, Finance: Meter Reads/Service -xxv- Attachment 3 FISCAL YEAR 2018 -2022 CIP BUDGET HIGHLIGHTS BY COMMUNITY AND CITY COUNCIL GOALS & PRIORITIES 2021 COMMUNITY GOALS & CORRESPONDING PRIORITIES: ECONOMIC PROSPERITY Priority: Master Plan Chaplain Schmitt Island Priority classification: Top Priority CIP projects supporting this Priority: Harbor Area Maintenance (page 286) and Riverfront Leasehold Improvements (page 291). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Planning Services Department. Priority: River Cruises Docking Facility Priority classification: Top Priority CIP projects supporting this Priority: Harbor Area Maintenance (page 286), Riverfront Leasehold Improvements (page 291) and Riverfront Dock Expansion (page 292). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Planning Services and Engineering Departments. SOCIALICULTURAL VIBRANCY Priority: Inclusive Dubuque Action Plan Priority classification: Top Priority CIP projects supporting this Priority: Accessibility Building Modifications (page 75), ADA Curb Ramp Construction Project (page 259), Neighborhood Related Improvement (page 287), Downtown ADAAssistance (page 321), ADA Compliance Consultant (page 322), Workforce Development (page 326), and Neighborhood Grants (page 383). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Human Rights Department. Priority: 21't Century Policing Action Plan Priority classification: High Priority CIP projects supporting this Priority: Traffic Signal Fiber Optic (page 300), Traffic Signal Interconnect Conduit Replacement (page 302), Fiber Optic Conduit - Miscellaneous (page 306), ITS Traffic Control Equipment (page 307), Street Camera Installation (page 308), City-Wide Security Camera Program (page 309), Port of Dubuque - Security Cameras (page 290), Washington Neighborhood Streetlights (page 288) and Downtown Streetlight Replacement (page 318). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Police. Priority: Community Health Needs Assessment Plan Including Mental Health Priority classification: High Priority CIP projects supporting this Priority: Accessibility Building Modifications (page 75), ADA Curb Ramp Construction Project (page 259), -xxvi - Neighborhood Related Improvement (page 287), Downtown ADAAssistance (page 321), ADA Compliance Consultant (page 322), Workforce Development (page 326), and Neighborhood Grants (page 383). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Health Services Department. PLANNED AND MANAGED GROWTH Priority: Central Iowa Water Association Priority classification: Top Priority CIP projects supporting this Priority: West Side Water System (page 150) This priority is supported through the FY17 and Proposed FY18 Operating Budget. PARTNERING FOR A BETTER DUBUQUE Priority: Citywide Flower Planting Program Priority classification: High Priority CIP projects supporting this Priority: Maintenance Headquarters and Forestry Buildings (page 54), Maintenance Headquarters -Wash Bay (page 71), Ecological Restoration (page 61), Highway 20 Corridor - Landscape Plan (page 57), Highway 20 - Irrigation (page 62), Port of Dubuque Welcome Sign (page 74) and Re-landscape Locust Street Connector (page 67). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Leisure Services Department. Priority: Five Flags Center Study Priority classification: High Priority CIP projects supporting this Priority: Accessibility Building Modifications (page 75), Facility improvements and equipment replacement projects (pages 75 - 103). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Leisure Services Department. IMPROVED CONNECTIVITY: TRANSPORTATION AND TELECOMMUNICATIONS Priority: East-West Corridor Study Implementation Priority classification: Top Priority CIP projects supporting this Priority: East - West Corridor Capacity Improvements (page 254) This priority is also supported through the FY17 and Proposed FY18 Operating Budget in Engineering Department. Priority: Street Maintenance Program Priority classification: High Priority CIP projects supporting this Priority: Street Construction General Repairs (page 250), Street and Alley Assessment Assistance Program (page 263), City wide LED Streetlight Retrofit (page 314), Downtown Streetlight Replacement Schedule (page 318), Southwest Arterial Project (page 264), Guardrail Replacement (page 251), Pavement Marking Project (page 252), Bridge Repairs/Maintenance (page 261), ADA Curb Ramp Construction Project (page 259)Crosswalk Warning Devices (page 276), Sidewalk Program - City-Owned Property (page 256), Sidewalk Program Related Curb and Catch Basin Replacements (page 257) and Sidewalk Inspection Program -Assessable (page 258). This priority is also supported through the FY17 and Proposed FY18 Operating Budgets in Public Works and Engineering Departments. -xxvii - Priority: Traffic Signal Synchronization Citywide Priority classification: High Priority CIP projects supporting this Priority: Fiber Optic Conduit -Miscellaneous (page 306), Fiber Optics Communications from Downtown to Airport (page 319), Flashing Yellow Left Turn Arrow(page 316), ITS Traffic Control Equipment (Page 307), Northwest Arterial Turn Lane (page 320), Signalization Program (page 296), Surge and Grounding Improvements at Signals City-wide (page 317), Traffic Signal Battery Backup Program (page 312), Traffic Signal Controller Replacement (page 304), Traffic Signal Fiber Optics (page 300), Traffic Signal Interconnect Conduit Replacement (page 302), Traffic Signal Intersection Reconstruction (page 315), Traffic Signal Vehicle Detection Conversion (page 299) and Video Management Software and Equipment (page 311). This priority is also supported through the FY17 and Proposed FY18 Operating Budget in the Engineering Department. MANAGEMENTAGENDA The City Council also identified projects that were previously on the priority list but whose implementation has already begun and therefore these projects are now a part of the Dubuque 2016 - 2018 Management Agenda. These represent short-term projects for the City Manager and City of Dubuque staff and have previouslvbeen budgeted in Fiscal Year 2017 orprior. 2016 -2018 Management Agenda items are identified under their corresponding Community, City Council or Organizational Goal: Economic Prosperity 1) Opportunity Dubuque This priority is being addressed through the FY17 and proposed FY18 Economic Development Department Operating budget and proposed FY18 CIP Workforce Development (page 325). Key Issues: • Partner • 2016-2018 Actions: • Develop Strategic Plan • City Council Presentation on Strategic Plan 2) Housing TIF This priority is being addressed through the FY17 and proposed FY18 Economic Development Department Operating budget and proposed FY18 CIP Homeownership Assistance (page 362). 2016-2018 Actions: • Identify potential subdivision (8 candidates) • City Council: TIF Decision (by subdivision) Social/Cultural Vibrancy 3)Affirmatively Furthering Fair Housing This priority is being addressed through the FY17 and proposed FY18 Housing & Community Development Department Operating budget. -xxviii - 2016-2018 Actions: Housing Policy Management Review 4)Arts and Culture Master Plan This priority is being addressed through the FY17 and proposed FY18 Economic Development Department Operating budget. 2016-2018 Actions: • City Council Decision: Direction, Funding • Develop Implementation Strategy 5) Community Security/Surveillance/Traffic Cameras This priority is being addressed through the FY17 and proposed FY18 Engineering and Police Department Operating budgets and proposed FY18 CIPS Street Camera Installation (page 308), City-Wide Security Camera Program (page 309), Port of Dubuque - Security Cameras (page 290), Washington Neighborhood Streetlights (page 288) and Downtown Streetlight Replacement (page 318). Key Issues: Staffing Infrastructure Fiber Expansion 2016-2018 Actions: Develop Budget Proposal City Council: Budget Funding - camera, staffing, infrastructure Planned and Managed Growth 6) CHANGE Program This priority is being addressed through the FY17 and proposed FY18 Housing & Community Development Department Operating budget and proposed FY18 Cl Ps Bee Branch Healthy Homes Resiliency Grant (page 378), First-Time Home Buyer Program (page 370), Homeowner Rehabilitation Program (page 366), Homeownership Grants for Purchase/Rehab/Resale (page 364), Lead Based Paint Hazard programs (pages 373 and 376), Purchase/Rehab/Resale (page 377), Washington Neighborhood Home Purchase Program (page 368) and Washington Neighborhood Housing Initiative (page 375). 2016-2018 Actions: CHANGE Brochure Healthy Homes Initiative Formalize Committee Committee Decision: Direction Lead Program: Implementation (129 Units) Strategic Plan: Completion -xxix - Resiliency Grant Contract o Improvement (320 Housing Units) Fair Housing Rehabilitation (10 Housing Units) Homeownership Program Training Workshop CITY COUNCIL MANAGEMENT IN PROGRESS AND MAJOR PROJECTS: The following are projects that were identified as the 2018 Management in Progress and Major Projects by the City Council and are included in the 2018 CIP budget according to one of the Community, City or Organizational goals. 2016 -2018 Management in Progress Management in Progress are items that were previously a City Council Goal and are now in the implementation phase. These items are included in the existing FY17 and proposed FY18 Operating budgets unless noted for additional funding. The items are identified under their corresponding Community, City Council or Organizational Goal: ECONOMIC PROPERITY GOAL Riverfront Lease Gavilon site: Marketing - also in proposed FY18 CIP Budget (page 290) Riverfront Leases: Marketing - also in proposed FY18 CIP Budget (page 290) Air Service Expansion: Contact air carriers, incentives for route-funding Dubuque Initiative: Next Steps Brownfield Area-wide Planning and Assessment Report Old Air Terminal Facility Reuse Charter Service Expansion Marketing Dubuque Jet Center Fuel Sales Sale of Art on the River Sculptures Art on the River Winter Edition: Feasibility study Economic Impact of Historic Preservation - Marketing plan Eagle Point Park National Historic Recognition Phased Historic/Architectural Survey Report America's River III Fund Raising Launch Entrepreneurs/Start Up Business Program Expansion Dubuque Industrial Center South: Marketing and Sale - also in proposed FY18 CIP Budget (pages 333, 334) Downtown Housing Creation Grant Program - also in proposed FY18 CIP Budget (pages 341, 343) Marina Signage from the River Steeple Square Project: Update Report ENVIRONMENTAL/ECOLOGICAL INTEGRITY GOAL Bee Branch Community Orchard -xxx- Recycling Program: Cart Expansion Community Climate Action and Resiliency Plan Fats/Oils/Grease (FOG) Program Iowa Economic Development Authority Community Energy Path Forward (Air Quality) Plan Georgetown Energy Prize Methane Gas Plan: WRRC Green Iowa Americorps Office Relocation Emerald Ash Borer Program: Implementation Resilient Community Advisory Commission CNG Truck Purchase Evaluation - also in proposed FY18 CIP Budget (page 203) SOCIAL/CULTURAL VIBRANCY GOAL • Housing Code and Inspections Program: Implementation Voluntary Compliance Agreement Leadership Enrichment After School Program (LEAP) Campaign for Grade Level Reading Program: Re-application All-America City Award for 2017: CFGD Third Grade Reading Application ROSE Housing Tax Credit Program:Amendments FDA Voluntary Retail Food Regulatory Standards: Implementation Fair Housing Action Plan: Analysis of Impediments Housing Policy Management Review Rental Housing License Program: Enforcement ADAAudit- also in proposed FY18 CIP Budget (page 321) Cultural Snapshots Series: Development Hate/Bias Incident Response Plan: Update Source of Income Dialog Session: Development Neighbor2Neighbor Initiative Local Foods/Community Garden Initiative PLANNED AND MANAGED GROWTH GOAL • Flood Wall/Levee Breech Study Source of Income Work Group: Report West Third Street Reservoir Study City-wide Leak Detection Survey 42" Force Main (Terminal Street Lift Station to WRRC) Accela Program: Inspection by Property PARTNERING FOR ABETTER DUBUQUE GOAL • Four Mounds Foundation/HEART Program: Report Purchase of Service: Data Collection, Training for Purchase of Service Providers, Reporting Mechanism -xxxi - Sister City Program: Recommendations Eagle Point Park Ecological Restoration and Management Plan: Completion - also in proposed FY18 CIP Budget (page 61) Jackson Park Pilot for Neighborhood Engagement - also in proposed FY18 CIP Budget (pages 36, 37) IMPROVED CONNECTIVITY: TRANSPORTATION AND TELECOMMUNICATIONS • Smarter Transportation Program: Update PEG Digital Encoding Historic Federal Building HD Upgrade - also in proposed FY18 CIP Budget (page 281) Bus Routes: Update Electronic Fare Cards/Payment: Implementation Bus Storage Facility: Funding, Design, Construction - also in proposed FY18 CIP Budget (page 351) FINANCIALLY RESPONSIBLE CITY GOVERNMENTAND HIGH PERFORMANCE ORGANIZATION: • Affordable Care Act: IRS data reporting Non-Emergency Mobile/Portable Units: Replacement Police Officers Recruitment and Retention Fire Accreditation: Completion W desk: Implementation and Training SunGard Optimization for Budget Module and Project Module Implementation Accela Software: Implementation Plan Review Refinements Integrated Pest Management: Implementation InVision Software for ADA Improvements: Implementation Electronic Submission of Permit Applications: Implementation Concession Agreements: Revision Management Philosophy: Workshop and Orientation Emergency Response Plan: Development Direct Time Entry and Employee Access Center: Implementation Auditing Services Contract Banking Services Review Investment Policy: Re-certification Iowa Paramedics Transition Plan: Implementation E-mail and Operating System (to Microsoft) Financial System Upgrade: Implementation - also in proposed FY18 CIP Budget (page 386) Medical Plan and Stop Loss Insurance Program: Third Party Contract Labor Contracts: Negotiation, Contract Water Source and Distribution Master Plan: Completion Radio System Upgrade to P25 -xxxii - 2016 -2018 Major Projects ECONOMIC PROSPERITY • Air Side Access Road Terminal Landscape ENVIRONMENTAL/ECOLOGICAL INTEGRITY GOAL Green Alley Projects (22 alleys) Bee Branch Project (Garfield to Comiskey and under Railroad) - also in proposed FY18 CIP Budget (pages 245-249) Energy Efficient Street Lights (by 2020) - also in proposed FY18 CIP Budget (pages 284, 288) Municipal Separate Storm Sewer System (MS4) Permit Bee Branch Gate Project: Design - also in proposed FY18 CIP Budget (pages 245 - 249) PLANNED AND MANAGED GROWTH • Washington Street 30" Force Main 20"Water Transmission Main (Millwork District to West 3rd Reservoir) - also in proposed FY18 CIP Budget (page 156) Roosevelt Pump Station: installation Water Tank Inspections and Maintenance - also in proposed FY18 CIP Budget (page 136) Back Up Generators (West Third, Park Hill, Mt. Carmel) Water Main Extension Projects (North Cascade Road, JFK) PARTNERING FORA BETTER DUBUQUE GOAL • Five Flags Theater and Ham House Building Improvements - also in proposed FY18 CIP Budget (pages 33, 75-103) Grand River Center Upgrades - also in proposed FY18 CIP Budget (pages 113-131) IMPROVED CONNECTIVITY: TRANSPORTATION Southwest Arterial Project: Design, English Road Construction -also in proposed FY18 CIP Budget (page 264) Senior High Road Project English Mill Road Bridge Military Road Bridge North Cascade Reconstruction - also in proposed FY18 CIP Budget (page 267) Chavanelle Road Hike/Bike Trail: Design, Construction Upper Bee Branch CP Railroad Crossing - also in proposed FY18 CIP Budget (page 246) Grandview-Delhi Roundabout -also in proposed FY18 CIP Budget (page 269) Chavanelle Road Rehabilitation: Design, Construction -also in proposed FY18 CIP Budget (page 271) Washington Street Improvements Project - also in proposed FY18 CIP Budget (page 287) Menards Frontage Road Project East-West Corridor Roundabouts: Preliminary Design - also in proposed FY18 CIP Budget (pages 254, 269) Radford/Pennsylvania Roundabout: ROWAcquisition Traffic Signals Upgrade - also in proposed FY18 CIP Budget (pages 195-306, 310-316) NWArterial/Chavanelle Intersection Improvement NW Arterial Trail (Holiday Drive to Chavanelle Drive) -xxxiii - Attachment 4 Source of Funds and Important Details The Fiscal Year 2018-2022 CIP presents a financial plan reflects a $220,507 general property tax levy supported annual debt service for the FY 2010 purchase of a replacement pumper truck ($1,035,000) and the FY 2016 the franchise fee litigation settlement judgment bond ($2,800,000). No other borrowings included in the Fiscal Year 2018-2022 CIP utilize a debt service levy. It is anticipated that other borrowing from non utility funds can and will be minimized by using other sources of funds such as future DRA annual distributions of operating surplus and sales tax revenue. The following important details are called to your attention about the source of funds: UTILITIES Stormwater (User Fees 2.52% /State Revolving Loan Fund 6.67% of Total CIP) The Stormwater Utility was formed on July 1, 2003, to update the City's aging infrastructure and implement the City of Dubuque Stormwater Management Plan, which consists of the Bee Branch Watershed Flood Mitigation Project. It is a multi-phased, fiscally responsible investment. It reflects a holistic approach to mitigate flooding as it will also improve water quality, stimulate investment, and enhance the quality of life. Having secured the necessary federal and state funding approvals, permits, and funding, Dubuque has pushed forward with planning, execution, and completion of three phases and the initiation of three more. In January 2016, the State was awarded $95.7 million in HUD National Disaster Resiliency Competition grant funds. Per the award, the City of Dubuque is to receive $8.4 million for a comprehensive 'Bee Branch Healthy Homes Resiliency Program"to help residents address residual impacts from the flooding experienced within the Bee Branch Watershed. The City is also to receive $23.1 million for storm water infrastructure improvements associated with the Bee Branch Watershed Flood Mitigation Project. The infrastructure improvements are as follows: 1. Bee Branch Railroad Culvert Infrastructure Improvements involving the installation of culverts from the Lower Bee Branch Creek, through Canadian Pacific Railway property, to the Upper Bee Branch north of Garfield Avenue; 2. 22nd Street/Kaufmann Ave Storm Sewer Improvements involving the installation of a large diameter storm sewer from 22nd & Elm up Kaufmann Avenue to the Kaufmann & Kane intersection. The work includes inlets and local sewer connections to the storm sewer and the complete reconstruction of the street and other underground utilities along street right-of-way corridor. 3. 17th Street/W. Locust Street Storm Sewer Improvements involving the installation of a 96-inch diameter pipe from the Lower Bee Branch Creek through the Canadian Pacific Railway tracks to 17th Street then to the west along 17th Street and finally west along W. Locust Street towards Angella St. The work includes inlets and local sewer connections to the storm sewer and the complete reconstruction of the street and other underground utilities along street right-of-way corridor. -xxxiv- In October of 2016, the City Council adopted Resolution 362-16. It rescinded Resolution 176-15 which outlined the construction schedule of various phases of the Bee Branch Watershed Flood Mitigation Project. Resolution 362-16 also authorized the execution of the contract with the Iowa Economic Development Authority in order for the City to utilize $23,309,600.00 in HUD National Disaster Resiliency Competition grant funds for the Bee Branch Watershed Flood Mitigation Project. The funds are specifically for the improvements related to the Bee Branch Railroad Culvert Improvements, the 22nd Street/Kaufmann Ave Storm Sewer Improvements, and the 17th Street/W. Locust Street Storm Sewer Improvements. Per the contract, the City must contribute the previously budgeted $21,600,000 for the infrastructure improvements as local, Direct Leverage. The City also must provide $38,219,000 in Supporting Leverage, monies that the City previously budgeted for and has been utilizing to construct the Lower Bee Branch Creek Restoration Project, the Upper Bee Branch Creek Restoration Project, and the SRF Green Alleys constructed over the past couple of years. Finally, in order to receive and utilize the funding, the City must construct all of the improvements by the end of Fiscal Year 2021. In order to ensure that the improvements related to the grant are completed by the end of Fiscal Year 2021, adjustments were necessary to the funding schedule previously established by Resolution 176-15 for other phases of the Bee Branch Watershed Flood Mitigation Project (Flood Mitigation Project). The table below compares the funding schedule for the various phases of the Flood Mitigation Project established through the adoption of Resolution 176-15 to an updated, adjusted schedule that will ensure adherence to the terms of the Contract. Adjusted Schedule Construction Established by Res. Schedule Improvements 176-15 Milestones Flood Mitigation Gate Replacement 2015 2017 Lower Bee Branch Creek Restoration 2015 2016-2017 Upper Bee Branch Creek Restoration 2015-2016 2015-2017 Bee Branch Creek Railroad Culverts 2019 2018-2019 North End Storm Sewers 2017 2022-2023 22nd Street Storm Sewer 2017 2017-2021 Flood Mitigation Maintenance Facility 2015-2017 2022-2023 17th Street Storm Sewer 2019-2021 2018-2021 Water Plant Flood Protection 2022-2023 2023-2024 Pervious Pavement Systems (Green Alleys) 2023-2040 2015-2040 Comparison of the funding schedule for the various phases of the Flood Mitigation Project established through the adoption of Resolution 176-15 to an updated, adjusted schedule that will ensure adherence to the terms of the HUD National Disaster Resilience Competition Grant Contract. The adopted Fiscal Year 2018-2022 Capital Improvement Program Budget included $3,900,000 for the 22nd Street Storm Sewer Improvements Project (Phase 8 of the Bee Branch Watershed Flood Mitigation Project) to improve the storm sewer system from Elm Street to Central Avenue. The -xxxv- HUD National Disaster Resiliency grant funding allows for the project improvements to extend westward along Kaufmann Avenue all the way to Kane Street. The adopted Fiscal Year 2018-2022 Capital Improvement Program Budget included $8,681,000 for the 17th Street Storm Sewer Improvements Project (Phase 12 of the Bee Branch Watershed Flood Mitigation Project) to improve the storm sewer system from the Lower Bee Branch along 17th Street to W. Locust Street. The HUD National Disaster Resiliency grant funding allows for the project improvements to extend westward along W. Locust Street towards Angella Street. The adopted Fiscal Year 2018-2022 Capital Improvement Program Budget included $18,248,700 for the culverts under the Canadian Pacific Railway property as part of the Bee Branch Creek Restoration Project (Phase 4 and 7 of the Bee Branch Watershed Flood Mitigation Project). The HUD National Disaster Resiliency grant provides funding for this effort. Direct City leverage totals $21,600,000; these funds have already been committed to the Bee Branch Watershed Flood Mitigation Project and were reflected in the adopted Fiscal Year 2017-2021 Capital Improvement Program Budget as reflected above. Fiscal Year 2018 will be the tenth fiscal year that the Stormwater Fund is recommended to be fully funded by stormwater user fees. The General Fund will continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy for the stormwater fee charged to property tax exempt properties, low-to-moderate income residents, and a 75% subsidy for the stormwater fee charged to residential farms. The FY 2018 Stormwater User Fee is proposed to increase from $6.81 per SFU to $7.27 per SFU, a 6.75% increase, consistent with Ordinance 16-14 passed on March 5, 2014. FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Adopted Per Ordinance 21-12 $8.50 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 Adopted Per Ordinance 16-14 $6.38 $6.81 $7.27 $7.76 $8.29 $8.85 $9.00 % Decrease From Ordinance 21-12 -24.94% -24.33% -19.22% -13.78% -7.89% -1.69% 0% The recommended rates for FY16 through FY20 reflect the rates previously established by Ordinance 16-14 following the State's approval of $98.5 million in State Flood Mitigation state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. Ordinance 21-12 was the ordinance adopted prior to the City receiving the Flood Mitigation grant. -xxxvi - Water(User Fees 3.19% /State Revolving Loan Fund 2.88% of Total CIP) Water revenue represents a portion of the monthly water bill that goes for maintenance, repair, replacement and improvement of the Eagle Point Water Plant and water distribution system on a pay-as-you-go basis for all projects except the major extensions. The annual payment to the depreciation fund in Fiscal Year 2017 was $1,012,000. The Fiscal Year 2018 - 2022 CIP anticipates $1,157,000 in Fiscal Year 2018, $629,063 in Fiscal Year 2019, $1,886,763 in Fiscal Year 2020, $1,220,625 in Fiscal Year 2021, and $289,000 in Fiscal Year 2022. Water State Revolving Loan Funds will be used to finance water projects in FY 2018-2022 as follows: FY 2018 of$4,396,500, FY 2019 of$0, FY 2020 $0, FY 2021 of$0, and FY 2022 of$0. Debt service related to the total $4,396,500 Water State Revolving Loan Funds over the five years will be paid from water fees and offset by reduced payments to Depreciation (Construction Fund). The borrowing supports such projects as the water main extensions relating to Central Iowa Water Association purchase. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Water Fund's fair share of the City's administrative overhead is 16.67%. In FY 18, the Water Fund will only support 1.02% of administrative overhead. The water fees in FY 2018 are recommended to increase 3%; 3%for operating needs and 0%for capital needs. -xxxvii - Sewer (User Fees 4.10% / Repayments 0.17% /State Revolving Loan Funds 0.19% of Total CIP) Sewer revenue represents a portion of the monthly sewer bill that goes for the maintenance, repair, replacement and improvement of the Water & Resource Recovery Center Plant; lift stations, and sewer lines on a pay-as-you-go basis. The annual payment to the depreciation fund in Fiscal Year 2017 was $346,000. The Fiscal Year 2018-2022 CIP anticipates $181,114 in Fiscal Year 2018, $903,241 in Fiscal Year 2019, $1,250,281 in Fiscal Year 2020, $1,036,030 in Fiscal Year 2021 and $1,298,187 in Fiscal Year 2022. Sanitary Sewer State Revolving Loan Funds will be used to finance sewer projects in FY 2018-2022 as follows: $290,000 FY18; $0 FY19; $0 FY20; $0 FY21; and $0 FY22. The debt service related to the total $290,000 State Revolving Loan Funds over the 5-years will be paid from sewer fees and offset by reduced payments to Depreciation (Construction Fund). The State Revolving Loan Funds support such projects as manhole replacements related to the consent decree. The sewer fees in FY 2018 are recommended to increase 3%; 3%for operating needs and 0% for capital needs. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Sanitary Sewer Fund's fair share of the City's administrative overhead is 16.67%. In FY 18, the Sanitary Sewer Fund will support 16.67%. -xxxviii - Parking (User Fees 0.02% / Bonds 0.09% of Total CIP) Parking revenue represents three primary sources: (a) the balance of prior year depreciation funds set aside for the maintenance and repair of parking ramps; (b) future payments to the depreciation fund for repair and maintenance of the parking system (there are no budgeted payments to the depreciation fund in future years due to using existing cash balance); and (c) interest income. Borrowings are anticipated as follows: $0 GO borrowing FY18; $55,000 GO borrowing FY19; $0 GO borrowing FY20, $75,000 GO borrowing in FY21 and $0 GO borrowing in FY 22. The debt service related to the total $130,000 bonds over the 5-years will be paid from parking fees and offset by reduced payments to Depreciation (Construction Fund). The GO borrowing supports such projects as parking lot repairs. The Greater Downtown TIF will support parking related debt in the downtown as follows: $280,000 in FY 2018; $280,000 in FY 2019; $280,000 in FY 2020; $280,000 in FY 2021; and $0 in FY 2022. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Parking Fund's fair share of the City's administrative overhead is 8.33%. In FY 18, the Parking Fund will only support 2.00%. -xxxix- Solid Waste Collection Activities (User Fees 1.71% / Bonds 0% of Total CIP) Solid waste collection activities revenue represents a portion of the monthly refuse bill that goes for the purchase of solid waste collection vehicles. The annual payment to the depreciation fund in Fiscal Year 2017 was $224,374 and will be $350,000 in FY 2018, $525,000 in FY 2019, $550,000 in FY 2020, $600,000 in FY 2021 and $600,000 in FY 2022. Prior to FY 2013, the General fund has been subsidizing a portion of the utility funds use of administrative services such as Engineering administration, Engineering Project Management, Finance accounting services, Economic Development, Planning Services, Workforce Development, City Clerk services, Legal services, City Manager's Office including Budget, Geographic Information Systems, Sustainability, Neighborhood Development, Arts and Cultural Affairs and Personnel. Prior to FY 2013, the Engineering department estimated the amount of time spent on projects and allocated that time to an Internal Service Fund which is then allocated to the various capital improvement projects that the personnel work on. The remaining time not allocated to the Internal Service Fund was considered administrative and has been charged to the General Fund. In addition, administrative departments such as the City Manager's Office, Legal, Planning, Economic Development, City Clerk's Office and Workforce Development recharged expenses based upon each enterprise fund's percent of the City-wide operating budget, excluding debt service. The accounting activity of the Finance Department has not been recharged to the other funds with exception of payroll and loan processing, parking tickets and landfill billing. Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Economic Development, Planning, Workforce Development, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. The Solid Waste Fund's fair share of the City's administrative overhead is 16.67%. In FY 18, the Solid Waste Fund will only support 13.61%. The solid waste collection fees in FY 2018 are recommended to increase 2.30%. GENERALFUND The current revenue amount of$1,415,480 (0.92% of CIP Total) during the five-year period represents $80,000 in golf funds for improvements to the Bunker Hill Golf Course, $37,080 in Historic Preservation Loan repayments, $150,000 in Rental Dwelling Rehab Repayments, $1,100,000 in Greater Downtown Loan Pool Repayments, and $48,400 in repayments to the Homeownership Loan Program. -xl - LOCAL OPTION SALES TAX(LOST) The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 20 percent of the proceeds would be used for: (a) the upkeep of City-owned property such as sidewalks, steps, storm sewers, walks, curbs, traffic signals and signs, bridges, and buildings and facilities; (b) transit equipment such as buses; (c) riverfront and wetland developments; and (d) economic development projects. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as "Sales Tax (20%)" totals $5,652,968 and represents 3.70 percent of the total CIP. The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 30 percent of the proceeds would be used to: (a) reduce street special assessments by at least 75 percent; and (b) maintain and repair streets. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as "Sales Tax/Street Projects (30 percent)" and totals $13,672,299, or 8.95 percent of the total CIP. GAMING DRA payments represent 2 percent in FY18 of the projected gaming taxes, rent, and admissions from the race track, slots and riverboat operations ($936,694 or 0.61% of the total CIP) over the five-year period. When practical in future years, additional revenues will be moved to capital from operating. To the extent that there is any revenue shortfall in future years, capital projects will be eliminated or deferred. DRA distribution revenue projections ($5,393,089 or 3.53% of the total CIP) are discounted consistent with the adopted budget guidelines by 5% in FY 2020, 10% in FY 2021 and 15% in FY 2022. As reported in prior years, with the reduction in the Dubuque Racing Association's market impacts the City's lease payment from the DRA. The City's estimated lease payments through FY 2022 have been reduced $28 million based on projections from the DRA. These adjustments to the City budget were made through current years and prior year's budgeting processes. In Calendar Year 2016, gross gaming revenues at the Mystique Casino are down 2.4%. The Dubuque gaming market was significantly impacted beginning in May 2016 when Rhythm City Casino off Interstate 80 opened in Davenport. The DRA has projected a 1% decrease in gross gaming revenue for Calendar Year 2017. 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 $6.8 million monthly for the five counties closest to Dubuque and in a direct line with Rockford, IL, which has caused a reduction to the gaming market in Dubuque. The Mystique Casino and Diamond Jo Casino average monthly revenue is $9.6. This is a similar impact as if two and a half more casinos combined were built half-way between Dubuque and Rockford. In addition, the recession has also impacted the gaming market. The revised DRA gaming projections include minimal growth in revenues over the next five years with a negative growth rate of-1% in FY 2018 and FY 2019 and a growth rate of 1% in FY 2020 and beyond. -A - There is DRA distribution budgeted in this 5-Year Capital Improvement Program budget cycle which has been decreased $2,037,822 based on revised projections from the DRA. FEDERAL FUNDING Community Development Block Grant (CDBG) The Fiscal year 2018 - 2022 CIP anticipates that Community Development Block Grant (CDBG) funds will be $604,879 in FY 2018; $383,994 in FY 2019; $299,794 in FY 2020; $299,794 in FY 2021; and $301,794 in FY 2022 (1.24% of the total CIP). CDBG is budgeted at the same funding level as FY 17. Federal Aviation Administration (FAA) The FAA funding of$3,482,798 (2.28% of the total CIP) provides 90 percent match on most airfield related improvements. The Fiscal Year 2018-2022 budget includes replacement of snow removal equipment; airfield lighting vault; update airport layout plan and GIS; and rehabilitate taxiway A. Federal Transit Administration (FTA) The FTAfunding of$630,281 (0.41% of the total CIP) provides for the federal share of the Bus Storage and Maintenance Facility and JFK Circle Transfer Station Phase 2. Federal STP Funds (6.65% of Total CIP) Federal funds are anticipated for the Southwest Arterial $500,000; $872,000 for North Cascade Road; and $8,783,000 for the East West Cooridor. Federal Lead Paint Hazard Mitigation Grant (0.73% of Total CIP) Federal funds for the Lead Paint Hazard Mitigation program awarded in FY 2016 with funding budgeted as follows: $851,500 in FY 2018; $267,660 in FY 2019. Federal HUD Resiliency Grant (20.00% of Total CIP) The U.S. Department of Housing and Urban Development (HUD) has awarded the City of Dubuque $31.5 million to assist Bee Branch Watershed homeowners in repairing and "flood-proofing" their homes and for stormwater infrastructure improvements. $8.4 million for the rehabilitation of 320 housing units, including owner-occupied homes, single-unit rentals, and small, multi-family residential units, all within the targeted Bee Branch Watershed areas; $9 million for the installation of six 8-foot diameter culverts to convey stormwater from the Upper Bee Branch Creek (currently under construction) through Canadian Pacific railroad right-of-way to the Lower Bee Branch Creek; $2.6 million for West Locust Street storm sewer improvements that will increase the capacity of the West Locust Street corridor stormwater management system by constructing a storm sewer from 17th Street toward Rosedale Avenue; and $11.5 million for Kaufmann Avenue Storm Sewer improvements that will increase capacity of the stormwater management system in this area (from Central Avenue to Kane Street) by constructing a storm sewer with 80 stormwater drains. -xlii - STATE FUNDING Road Use Tax Road Use Tax Funds (RUTF) of$3,297,909 (2.16% of the total CIP) over five years represents the balance of annual payments not required for support of the operating budget and funds that had been reserved to finance high priority transportation projects. The Iowa Department of Transportation (IDOT) provides annual projections on the amount of RUTF the City of Dubuque will receive over the next five years based on a per capita amount. The State Road Use Tax Fund consist of revenues from fuel tax, vehicle registration fees, use tax, driver's license fees and other miscellaneous sources and is distributed to cities on a per capita basis. It should be noted that in FY 2010, the Iowa Department of Revenue increased Road Use Tax Funds (RUT) as a result of higher vehicle registration fees passed into law in 2008. The gas tax was increased ten cents beginning in February 2015. The city is estimated to receive $34,992,720 for FY 2018-2022. With increases in City DMATS and State Road Use Tax funds, the City will be able to substantially add to the number of street lights, keep the Southwest Arterial project moving and continue with major road improvements like North Cascade Road, Central and White Streets. Sales Tax Increment Revenue (Grant 9.69%) The City secured a $98.5 million grant through the State of Iowa Flood Mitigation program funded by 70% of the sales tax increment revenue received from the State of Iowa's 5% portion of sales tax received from sales in the City of Dubuque. This revenue will fund the debt service payable on Sales Tax increment Revenue bonds and Iowa Finance Authority State Revolving Loan Funds issued for the Flood Mitigation project known as the Bee Branch Watershed Project. In the five year capital program, $14,808,257 of sales tax increment revenue will fund pay-as-you-go projects related to the Bee Branch Watershed project. Other State Grants (5.42% of Total CIP) State funding includes Iowa Department of Transportation Funding for street projects and trails of$2,935,000 are anticipated over the five-year program. Iowa Finance Authority funding of$820,730 is anticipated over the five-year program for the Housing Department's Housing Trust Fund to provide permanently affordable housing or assistance to nonprofit organizations providing the same. The other state assistance represents State Transit Assistance of$2,026,143 for Vehicle Replacements, bus stop improvements and JFK Transfer Phase 2. TAX INCREMENT FINANCING (TIF) (Tax Receipts 10.13% / Bonds 0% of Total CIP) Dubuque Industrial Center West TIF District In FY 2006 and 2007, Tax Increment Financing (TIF) funds were committed towards abatement of the 20 year G.O. Bond issue for a Dubuque Industrial Center West (DICW) expansion and Chavenelle Road extension project, thereby delaying payback to the general fund for prior year development costs. In FY 2007, the TIF assessed values increased, allowing for additional increment for projects and cost recovery to continue. In FY 2017, the TIF assessed values increased again from a commercial 12% State equalization order. In FY 2018, subarea B of DICW will end and $55,157,150 of increment will return to the base. -xliii - The FY 2018 CIP includes $1,500,000 to rehab Chavenelle Road. $310,000 is included each Fiscal year to provide funding for the new campaign by the Greater Dubuque Development Corporation to improve the economy in Dubuque. FY 2018 and 2019 includes $50,000 in each year to install and maintain appropriate signs for the McFadden property consistent with the current approved signage within and around the City to effectively identify the area and expansion opportunities. FY 2019 and 2020 includes $50,000 in each year to install and maintain appropriate signs for the Dubuque Industrial Center South consistent with the current approved signage within and around the City to effectively identify the area and expansion opportunities. Fiscal Year 2022 includes $200,000 to begin development of the Graf property and $200,000 to begin developmet of the McFadden property. Annexation Initiatives As annexation and development continues, the City has taken the following initiatives to provide services to annexed areas: Additional Police Officers (Operating Budget) With the Police Department's crime strategy, Territory Accountability Design, in full implementation, the department projected the need to increase Dubuque's current six patrol territories to seven as new areas of the city are developed. To add a seventh territory, five additional police officers were needed. Partly in response to this need, the Police Department developed a Sworn Officer Plan which proposed the addition of 15 sworn police officers over a five-year period, with the first five (four Police Officers and one Police Corporal acting as a Section 8 Investigator) approved in December 2007, four more approved in FY 2009, three more approved in FY2010, two more approved in FY2011 and one more approved in FY2012. The plan's staff increases created sufficient staffing to establish an additional patrol territory. Additional Snow Plow Drivers and Snow Plow Route (Operating Budget) Dubuque's expansion will also increased the number of streets and roads that must be maintained by the City's Public Works Department. In order to maintain the current level of street maintenance, street cleaning, and snow and ice control to all areas of the city, the Public Works Department was approved for the addition of a snow plow driver in FY2009 and another is expected to be requested in a future year. Two drivers are needed to staff a route 24 hours a day in a snow event. The Public Works Department plans to create another snowplow route with these two employees as annexation and development dictates. In the warm months, this position will be assigned to the Leisure Services Department to maintain City parks and landscaping in the Washington Neighborhood, Port of Dubuque, Iowa Street and the Locust Street connector. In Fiscal Year 2009, the Public Works Department also began using Refuse, Recycling and Yard Waste Collection employees at the end of their collection routes and on overtime to assist in snow removal duties. The City has also developed a plan to use personnel and equipment from other City departments to go from 22 pieces of snow removal equipment to 32 pieces of snow removal equipment in a snow storm that exceeds 5 inches. With the recommendation to eliminate full-time positions in the Engineering Department and create one part-time position, there will be less opportunity to supplement the snow plowing effort. Water and Sanitary Sewer Service The City is in the process of extending sanitary sewers and water service into new development areas or recently annexed areas as part of pre- annexation agreements. -AV - In 2003, a new water main was activated from Highway 20 north on the east side of the Northwest Arterial to John F. Kennedy Road then west to a new 1.25 million gallon water tower located at the Dubuque Soccer Complex. By constructing this tower and with this water main extension in the fourth pressure zone of the City's water distribution system, it allowed growth to take place for residential, commercial and industry to the west of the community. To date, both sanitary sewer and water service have been extended through the Dubuque Industrial Center West, along Seippel Road to the north edge of the Callahan subdivision. Funds are budgeted in the current year to extend service to the 700-acre west-side annexation area as well as the 270-acre Corey/Herrig development on the northwest side of Dubuque. Additionally, service will be extended, in phases over the next two years, to the 280-acre McNamer residential property on North Cascade Road on the south side of Dubuque. Additional funds are available to extend water and sewer service to the 643 acres annexed and to other areas under consideration for annexation. The City has spent in excess of $2 million to replace much of the North Fork Catfish Creek Sanitary Sewer Line. The City is extended the Granger Creek Interceptor sewer and extending the public water main from the Technology Park South along highway 151/61 to the north side of the Dubuque Regional Airport. The Granger Creek sanitary sewer and water main extension provides immediate sanitary sewer and water services to the Dubuque Regional Airport and portions of the annexation areas that are adjacent to the highway 151/61 corridor. Greater Downtown TIF District This district was formally the Downtown and Ice Harbor TIF districts but now have been combined to the Greater Downtown TIF district. Many projects, which are City Council priorities, are able to move forward due to the availability of Greater Downtown TIF revenue due to continued growth to further sustain a rejuvenated downtown and port of Dubuque. The following are projects included in the FY 2018— 2022 CIP: Comiskey Park New Entrance (page 13) —This project provides funding for new entry and gathering space being developed on the northwest corner of the park ($30,147). Comiskey Park Amenities (pages 14) —This project provides funding for the replace the current garbage tubs and old cans with metal strap litter receptacles ($10,000). There will be an addition of benches added through the park especially in the playground and gathering spaces ($10,000). Wrought iron fences will be placed to add appeal to specific areas in the park ($30,000). A drinking fountain with a dog bowl would be added in a pedestrian friendly space ($5,000). A sidewalk would be added around the playground for increased accessibility. Signs throughout the park would be replaced. Comiskey Park Sidewalk Lighting (page 16) - This project ($100,000) provides for pedestrian sidewalk lighting to be installed along East 24th Street, East 25th Street and Jackson Street sidewalks of Comiskey Park. Comiskey Park Landscape Improvements (page 17) - This project ($50,000) provides for new planting beds as well as large planters in the park. It also includes irrigation to the beds and planters where possible to allow for lessened ongoing maintenance. Landscaping the new entry sign as well as new gathering space and around the community building will be target areas. Jackson Park Construct Restrooms (page 36) —This project provides funding for the construction of rest rooms in Jackson park ($250,000). -xlv - Jackson Park Amenities (pages 37) —This project provides funding for the improvement of amenities in Jackson park ($310,000). Town Clock Rehab (page 60) - This project ($100,000) provides for concrete work throughout the plaza area. Port of Dubuque Welcome Sign (page 74) - This project ($30,000) provides for the design, development, and installation of a 8 foot by 200 foot "Welcome to Dubuque" sign located on the flood wall near the Ice Harbor flood gates. Grand River Center Replace Carpet (page 118) - This project ($246,000) provides for the replacement of carpeting at the Grand River Center. Grand River Center Market Study and Facility Assessment (page 128) - This project ($65,000) provides for a facility assessment and market study in preparation of the Grand River Center's first twenty years. Bluff Street Parking Expansion (page 280) - This project ($175,000) provides for the construction of additional parking and provide improved pedestrian access and ADA accommodations near the Bluff Street Row houses at 15th Street and Bluff Street. Bluff Street would be reconfigured by addressing traffic calming measures. Most traffic would follow a re-configured Locust Street that would allow 2 way traffic to Loras Blvd. Parking bays would be added in the current island between Locust Street and Bluff Street. Federal Building Renovation (page 281) - This project ($1,046,000) provides funding for$4,000 for sidewalk repair to the only ADA accessible entrance into the building, $35,000 to complete the separation of the roof drain system from the sanitary sewer system. $120,000 to purchase the vacant parking lot adjacent to the building from the US Post Office. In FY19 $120,000 is allocated to purchase the vacant parking lot adjacent to the building from the US Post Office. In FY 2020 the following items are budgeted for: $22,000 to conduct an American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) Level 1 Energy Audit, $6,000 for the replacement of the public information kiosk in the lobby, $100,000 for making improvements to the vacant parking lot adjacent to the building, $25,000 for making ADA accessibility upgrades to the 3rd floor public restrooms, $49,500 for tuckpointing and waterproofing of the building window wells, and $13,000 to tuck point the front steps and replace rusting hand rails. Also $15,000 is budgeted to paint the interior post office space per the terms of the lease agreement, $4,500 is budgeted for improvements to the public wayfinding signs for the building and $176,000 to repair the copper soffit and tuckpoint the 3rd floor level of the building exterior at the roof line. In FY 2021 $250,000 is budgeted for an ASHRAE Level 2 & 3 Energy Assessment which will build off of the results from the Level 1 energy audit. The Level 2 Assessment provides detailed survey of building systems and operations, breakdown of energy source and end use, identification of Energy Efficiency Measures (EEMs) for each energy system, range of savings & costs for the EEMs, spotlight on operational discrepancies and outline of priorities for needed upgrades. The ASHRAE Level 3 Energy Assessment allows for complex HVAC system upgrade alternative analysis, return on investment and construction cost estimating.Also $220,000 is budgeted for structural repairs to the loading dock and leaking building foundation and $105,000 for replacement of the first floor lobby lights with replica period fixtures, main stairwell painting and lighting, and refinishing of the historic woodwork in the main lobby. Additional construction funding beyond FY22 is being budgeted to address known long term building operations and maintenance requirements. Work includes: $2,535,000 to complete the replacement of the building's cooling, heating and ventilation systems with a new, -xlvi - energy efficient, high performance systems, $22,000 for office space renovations to vacant rooms in building to improve their ability to be rented, $1,800,000 for restoration of the existing steel windows; $375,000 for remaining needed updates to the fire alarm system throughout the building and a generator for emergency operations; $230,000 is budgeted to install a new building wide security system that will include electronic locks, $30,000 to paint and replace blinds in the second floor offices, and $450,000 to renovate the basement spaces so they can be leased to commercial entities. The beyond FY22 budget includes associated design and construction contingency costs for all of the previously mentioned work. Port of Dubuque Parking Lot (page 283) - This project ($75,000) provides funding to officially request a Site Closure Acceptance Certification from the Iowa DN R. Following the site closure approval, the City can then begin to abandon underground remediation system that was originally installed. Greater Downtown Street Lights (page 284) - This project ($125,000) provides funding for the addition of approximately 130 mid-block street lights within the Downtown Urban Renewal District and CDBG areas. These additional street lights would be installed on newAlliant poles. Also, the City would provide LED lights to be installed on either commercial building or residential if property owner agrees to install and pay for the electrical costs. Riverfront Dock Expansion (page 291) - This project ($150,000) is to expand the existing riverfront docking facility to accommodate large excursion boats in the Port of Dubuque. The City's proposed infrastructure plan is to extend the lower Riverwalk Pier Wall approximately 300 feet to the north. The extension of the lower pier wall will connect Riverwalk Stair No. 1 and Stair No. 2 and create a new landing platform near the bottom of Stair No. 2. The new north pier wall landing platform will be connected to the Riverwalk by an ADA compliant ramped walkway. The excursion boats will moor against new pipe pile clusters and will access land from floating platform docks which will connect to the north pier wall landing platform via ADA compliant gangways. The expanded docking facility will accommodate excursion boats 400 feet in length or greater. Industrial Site Redevelopment Study (page 292) - This project ($25,000) is to evaluate redevelopment options for the industrial sight on 7th street along Dove Harbor, as well as a site along Kerper Blvd at the Peosta Channel. City-wide LED Streetlight Retrofit (page 313) - This project ($115,000) provides for LED replacement luminaries throughout the City. Currently when street light fixtures burn out they are replaced with matching style high pressure sodium street lights. This program would fund the use of LED replacement fixtures throughout the city. Downtown Streetlight Replacement (page 317) - This project ($351,000) provides for a replacement program of the existing 30-foot white streetlights located in downtown Dubuque. Currently there are approximately 70 white streetlights remaining. The project would replace approximately 10 light standards per year. In certain cases, these would be replaced with historical streetlights. Downtown Urban Renewal District ADA Assistance (page 320) - This project ($99,310) assists property owners, primarily in the Downtown Urban Renewal Area in making structural changes that make their properties more accessible. The maximum reimbursement a property could receive will be equal to or less than 50% of the after tax credit project costs, with a maximum of$5,000 reimbursed per property. -xlvii - Central Avenue Corridor Initiative - Pilot (page 329) - This project ($200,000) provides for targeted community engagement opportunities with residents, businesses, non-profits and city staff in the Central Ave Corridor and Washington Neighborhood to set the stage for community design processes. This phase will utilize the work and findings from past engagement and planning projects and further develop future plans. Central Avenue Streetscape Master Plan Implementation (page 327) - This project ($100,000) provides for the implementation of priority actions in the Central Avenue Streetscape Master Plan. The funds allocated would be used to support infrastructure and streetscaping priority improvements justified in the master plan. The Central Avenue corridor is part of the Washington Neighborhood Revitalization Plan and includes the area between Central Avenue between 11th and 22nd streets. Included in this strategy is the redevelopment and reinvestment in residential and commercial areas in the neighborhood. Some public infrastructure improvements have already been initiated and the Central Avenue corridor is beginning to see private investment in building improvements and business location. Washington Neighborhood Subarea (Includes Bluff/west Locust) Building Incentive & Rehabilitation Program (page 340) - This program ($200,000) provides grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District Washington Neighborhood Subarea. Tax increment proceeds and loan repayments are utilized to capitalize the pool of funds for these loans. Associated development costs for parking are also included in the budget. Washington Neighborhood Fagade Program (page 336) - This program ($150,000) provides low interest loans for rehabilitation and adaptive reuse for buildings and grants for planning/design costs and fagade improvements in the Downtown Washington Neighborhood. Downtown Housing Improvement Program (page 342) - This program ($200,000) would encourage investment in areas like Central Avenue, the Bluff/West Locust neighborhood, and other areas of downtown that offer housing many would believe to be inferior to the new units created in the Millwork District and Lower Main area. As the areas that have received more investment become choice housing for those working in downtown, it is important to incentive development and investment in the other areas as to minimize the disparity between the neighborhoods. This program would fill a gap in the City's current housing programs, and has been requested by developers, financial consultants, and lenders. Historic Millwork District Subarea Building Incentive & Rehabilitation Program (page 338) - This program ($160,000) provides low- interest loans for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District Warehouse Subarea. Tax increment proceeds and loan repayments are utilized to capitalize the pool of funds for these loans. The program will also provide grants of up to $10,000 for each new housing unit created in this district. The pool of funds would be made available to complete financing packages for the immediate creation of market-rate downtown rental and owner-occupied residential units within the Greater Downtown Urban Renewal District Warehouse Subarea. Market-rate residential units include rental units which are not income restricted or rental units that are restricted to 80% of median income and less for no more than five years (units must not be restricted to 60% of median income or less, or any other restriction under 80%) and owner occupied units. Greater Downtown Revolving Loan Pool (page 332)—This program provides low-interest loans for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District. Tax increment proceeds and loan repayments are utilized to capitalize the pool -xlviii - of funds for these loans. The program has been popular, with 19 loans made since 1996, and an additional nine loans that have yet to be disbursed, but have received commitments. This program is funded by loan repayments ($900,000). Downtown Rehab Grant Program (page 346) —This program ($200,000) provides grant funding for the rehabilitation of commercial or multi-family property in the Greater Downtown Urban Renewal District. The Facade Grant Program provides 1:1 matching grants not to exceed $10,000 in grant funds per project for front or rear facade renovations designed to eliminate inappropriate additions or alterations and restore the facade to its historic appearance or to rehabilitate the facade to include new windows, paint, signage, awnings, etc. to improve overall appearance. Landscaping or screening with fencing or retaining walls may also be allowed, especially as it may improve property adjacent to the right-of-way. The Planning and Design Grant Program provides 1:1 matching grants not to exceed $10,000 in grant funds per project to offset the actual pre-development costs incurred prior to a Rehabilitation project. Reimbursement would be allowed for architectural and engineering fees, feasibility studies, environmental assessments or other related soft costs, but not owner/developer fees, incurred in the development of the project. The Financial Consultant Grant Program provides 1:1 matching grants not to exceed $15,000 in grant funds per project to offset the actual cost of hiring a financial consultant used to analyze the feasibility of the projects that generally apply for historic tax credits.Additionally, there are several other property owners and developers that have expressed an interest in utilizing the program to fund projects. The Downtown Rehabilitation Facade Grant program receives the most inquires and interest out of all programs provided by the Economic Development Department. This program has helped promote great successes in the redevelopment of the downtown. In order to meet the demand for this program, and maintain the historic appeal of downtown, additional funds have been requested for this program. Downtown Housing Creation Program (page 344) - This program ($200,000) provides grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District. Tax increment proceeds and loan repayments are utilized to capitalize the pool of funds for these grants. The City of Dubuque has established this pool of funds to be made available to complete financing packages for the creation of market-rate downtown rental and owner-occupied residential units within the Greater Downtown Urban Renewal District. Projects eligible to receive assistance from this established pool of funds must meet certain requirements. Bus Storage and Maintenance Facility (page 352) - This project ($261,240) provides matching funds for a Federal Grant for the replacement of The Jule's current Bus Storage and Maintenance Facility (BSMF), located at 2401 Central Avenue. Assistance for Homeownership (page 363) - This project ($250,000) provides for The Comprehensive Housing Activities for Neighborhood Growth and Enrichment, or C.H.A.N.G.E. program. The Comprehensive Housing Activities for Neighborhood Growth and Enrichment, or C.H.A.N.G.E. program is a holistic approach to sustainability that addresses ecological, environmental integrity, economic prosperity, and social/cultural vibrancy. C.H.A.N.G.E. is a campaign of neighborhood revitalization and an extension of sustainability to specifically address marginal properties, affordable housing and homeownership. Under the umbrella of C.H.A.N.G.E., this project provides funding towards the City's strategy of revitalization for the downtown neighborhoods and centers on increasing homeownership. The City administers a number of programs of federal- and state-provided financial assistance for low-moderate income households (earning less than 80% of area median income) to achieve this. This assistance provides $38,000 match for funds received from the Iowa Finance Authority. To achieve the goal of promoting a broader income mix of downtown homeowners, programs are needed to assist households earning more than 80% of median income, who earn too much to qualify for current financial subsidies. This project also provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to -Ax - mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. The program offers loans up to $10,000 for down payments and closing costs and $25,000 for rehabilitation. This program is offered to households above and below 80% of median income, as an incentive to purchase and improve homeowner properties in sections of Census Tracts 1 and 5 as part of the Washington Neighborhood revitalization strategy. The loan repayment funds can be used for over 80% median income and the IFA Match is for below 80% median income. The other sources of funds can be used anywhere within the City of Dubuque limits. Consideration will be given to increasing the amounts for purchase of rental properties converted to owner occupied. Beginning in 2008, selective purchases have been made. Certain properties are targeted to be voluntarily acquired, for reason of poor maintenance and the inability or refusal of the owner to make improvements. These are then resold to qualifying owner-occupied households committed to restoration of the home. This program can help to expand the Four Mounds HEART program partnership. This CIP will also significantly enhance GHHI. In FY 2014, the City created a Housing TIF in the Timber Hyrst subdivision off of North Cascade Road, in FY 2015 English Ridge and FY 2017 South Pointe Housing TIFs were created. These are ten year TIFs which requires 38.1% of the income generated to be used for Low and Moderate Income residents any where in the City of Dubuque. Washington Neighborhood Housing Initiative (page 374) - This project ($375,000) provides for a partnership between Community Housing Initiatives, Inc. (CHI) and the City of Dubuque to increase the rate of homeownership and achieve a greater diversity of mixed household incomes. Forty (40) single family homes will be acquired and rehabilitated and resold over a four year period. Impact will be maximized by clustering acquisitions of homes. The fund was capitalized initially with $800,000 from CHI and $500,000 from the City in order to acquire 21 properties. North Cascade Housing TIF District In FY 2014 the City created the first housing TIF district in the Timber Hyrst subdivision off of North Cascade Road. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LM Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. North Cascade Road Reconstruction (page 267) - This project ($1,031,000) provides for reconstruction of North Cascade Road between the bridge over Catfish Creek to the future intersection of North Cascade Road and the Southwest Arterial. The project will be developed into 2 phases; Phase 1 (2017-2018) -from Caffish Creek bridge to Edval Lane; and Phase 2 (2019) - from Edval Lane to Southwest Arterial. The current 24-foot roadway will be widened to accommodate a 35-foot urban "complete street' section with 5-foot paved shoulders/ bike lanes on each side. The existing curves on North Cascade Road are substandard and will be realigned to improve safety and allow for better sight distance. The project will require the purchase of right-of-way property to accommodate the new roadway width and larger curves. Watermain will be extended along the North Cascade Road corridor to serve the Timber Hyrst subdivision and future development along the Southwest Arterial Corridor. Assistance for Homeownership (page 363) - This project ($2,223,274) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. English Ridge Housing TIF District In FY 2015 the City created a housing TIF district in the English Ridge subdivision off of Stone Valley Drive. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. English Ridge Park Development (page 9) - This project ($150,000) provides for developing a mini park in the English Ridge subdivision off Stone Valley Drive. English Ridge Water Main (page 158) - This project ($330,000) provides a 12" diameter water main on the proposed frontage road from South West Arterial (round-about) to Stone Valley Drive Assistance for Homeownership (page 363) - This project ($858,287) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. South Pointe Housing TIF District In FY 2017 the City created a housing TIF district in the South Pointe subdivision off of Highway 151 South. This is a ten year TIF which requires at least 38.1% of the income generated to be used for Low and Moderate Income residents anywhere in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. The LMI Housing TIF revenue can be used for City initiatives other than the Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Area. Assistance for Homeownership (page 363) - This project ($871,302) provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. MISCELLANEOUS SOURCES Private Participation (0.46% of Total CIP) Private contributions represents the non-City share of the cost of several projects including private participation, fund raising, loans, grants and future resource allocation of City funds. Private participation funds included in the five year CIP include; contribution from the Diamond Jo Casino for the Port of Dubuque Parking Ramp for maintenance as required by the development agreement ($351,000); County contribution for Fire Hazmat Truck Replacement ($144,282); Airport New Terminal Entrance Sign ($120,000); Bus Storage Maintenance Facility ($35,000); Paint Third Street Bridget ($30,000); and Lead Based Paint Hazard Control ($16,900). Special Assessments (0.10% of Total CIP) Special Assessments represent that portion of street and sanitary sewer improvement projects anticipated to be assessed to benefiting property owners. The $150,000 amount breaks down: (a) $0 for sanitary sewer special assessments, and (b) $150,000 for sidewalk lien special assessments. Cable TV(0.02% of Total CIP) It is anticipated that Cable TV funds will be used in the five-year CIP of$28,112 for computer replacements. - 111 -