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Dollars and Cents Public Information Brochure Kevin Firnstahl From:Mike Van Milligen Sent:Tuesday, August 01, 2017 7:56 PM To:Roy D. Buol; Luis Del Toro; Ric W. Jones; Kevin J. Lynch; David T. Resnick; Jake A. Rios; Thomas Barton; Joyce E. Connors Cc:Maureen Quann; Kevin Firnstahl; Teri Goodmann; Crenna Brumwell; Jenny Larson; Alexis Steger; Randy Gehl Subject:Debt information (for City Council and media) - 43% of statutory debt limit by FY 2022 Attachments:Dubuque%20Dollars%20and%20Cents_May%202%202017_sngl%20pgs.pdf; ATT00001.txt http://cityofdubuque.org/DocumentCenter/View/32983 1 DubuqueDOLLARS&CENTS Property taxes are collected by the County and distributed monthly to the City of Dubuque and other taxing bodies. Property taxes are distributed among the Dubuque Community School District (44.04%), City of Dubuque (32.84%), Dubuque County (18.51%), Northeast Iowa Community College (2.76%), and independent authorities* (1.86%). Property taxes are certified July 1 with the first half due on or before September 30 and the second half due on or before March 31. For more information, contact the City Assessor at 563-589-4416. * “Independent Authorities” includes City Assessor, County Hospital (Sunnycrest Manor), Dubuque County Agriculture Extension, and the Tuberculosis and Brucellosis Eradication Fund. 44.04% 32.84% 18.51% 2.76%1.86% Property Tax Split: FY2016-2017 School District City County NICC Independent SCHOOL DISTRICT CITY COUNTY NICC INDEPENDENT City Portion of Property Taxes Dubuque has the SECOND LOWEST FY2018 property tax rate ($10.89 per thousand assessed value) of Iowa’s 11 cities with populations over 50,000. • Highest-ranked city (Council Bluffs, $17.91) is 64% higher than Dubuque • Average ($15.31) is 41% higher than Dubuque FY2018 City Property Tax Rate Comparison $10.37 $10.89 $12.29 $12.78 $15.22 $15.31 $16.07 $16.33 $16.78 $17.52 $17.86 $17.91 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Ames Dubuque Ankeny West Des Moines Cedar Rapids Average w/o Dubuque Sioux City Iowa City Davenport Waterloo Des Moines Council Bluffs City of Dubuque FY2018 Property Tax Rate • $10.89 per thousand dollars of assessed value • A 2.47% reduction from FY2017’s rate of $11.17 • No property tax increase for average residential property owner, 2.47% decrease for average commercial property, 2.47% decrease for average industrial property, 6.71% decrease for average multi-residential property Property Type Average Property Tax Cost Change from FY2017 Percent Property Tax Cost Change from FY2017 Residential No Change No Change Commercial $83.20 less 2.47% decrease Industrial $124.43 less 2.47% decrease Multi- Residential $144.91 less 6.71% decrease Where do your property taxes go? $129,444,628 $40,268,319 Fiscal Year 2018 City Budget OPERATING BUDGET CAPITAL BUDGET OPERATING BUDGET CAPITAL BUDGET Fiscal Year 2018 City Budget General Fund City Budget General Fund Reserve Projections The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses that may occur. The reserve will increase by $5.925 million (54.24%) over the next seven years. FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Contribution $1,000,000 $600,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000 $100,000 City’s Spendable General Fund Cash Reserve Fund Balance $11,924,435 $9,866,669 $10,916,669 $11,966,669 $13,016,669 $14,091,669 $14,191,669 % of Projected Revenue (Moody’s)17.52%14.20%15.60%17.11%18.54%20.00%20.49% The City’s approved budget provides estimated revenues and expenditures for programs and services to be provided during the fiscal year, from July 1 through June 30. The budget has two primary components: the operating budget and the capital budget. The City’s total budget for fiscal year 2018 is $169,712,947, an 8.34 percent reduction from FY2017. The operating budget ($129,366,969) is a 0.14 percent reduction from FY2017 while the capital budget ($40,268,319) represents a 27.47 percent reduction from FY2017. The capital budget funds major improvements to City facilities and infrastructure, and is based on the first year of needs in the five-year Capital Improvements Program (CIP) Plan. The CIP Plan is an annually revised document that guides the City’s investments in public facilities The general fund is the general operating fund of the City for general service departments. The general fund has an operating budget of $61 million and a capital budget of $1.4 million. This fund encompasses the bulk of activities that are traditionally considered basic governmental services such as public safety, culture & recreation, health & social services, and general government. How General Fund Money is Spent Category Description Portion of General Fund Public Safety (animal control, building inspections, crime prevention, emergency management, flood control, fire, police, etc.)43.6% Culture & Recreation (AmeriCorps, arts & cultural affairs, civic center, conference center, library, marina, parks, recreation, etc.)17.7% General Government (city attorney & legal services, city clerk, city council, city hall & general buildings, city manager, finance, information services, etc.)12.4% Public Works (airport, maintenance of streets, bridges, and sidewalks; snow removal, street cleaning, street lighting, traffic control, etc.)9.6% Community & Economic Development (economic development, housing and community development, neighborhood development, planning and zoning, etc.)6.1% Transfers Out (to funds other than General Fund)5.8% Capital Projects (City infrastructure improvements or major equipment purchases)2.1% Health & Social Services (community health, health regulation and inspection, human rights, etc.)1.3% Debt Service (government capital projects, tax-increment financing [TIF] capital projects)1.3% and infrastructure during a five-year time horizon. The capital budget is supported through multiple funding sources. The operating budget includes personnel costs and annual facility operating costs. It is funded primarily through local property and sales taxes; revenue transfers between departments; licenses, such as building and development fees; franchise fees for a company’s use of the City’s rights-of-way; charges for services (like sewer and water); fines and other smaller sources of revenue such as interest on investments. *Average household rate based on 6,000 gallons per month at $0.0047 per gallon *Monthly rate for majority of Dubuque households based on usage of one single family unit. Stormwater fees are based on the amount of impervious ground coverage on a property. Fees collected are only used for stormwater management activities such as the construction, maintenance and operation of the public stormwater management system. Curbside collection includes one 35-gallon container per week. Weekly curbside recycling is no extra charge. *Average household rate based on 6,000 gallons per month at $0.00635 per gallon. When you wash your hands, wash the dishes, flush the toilet, or take a shower, the “wastewater” that goes down the drain flows through the interior plumbing, out of the house, and eventually into the City’s sanitary sewer system. The City’s wastewater collection and treatment system operates as a self-supporting enterprise fund which means that it is funded only with revenue from user fees. Curbside Collection - Basic Rate = $15.11/month (2.3% increase from FY2017 or $0.34 per month) Sanitary Sewer - Avg. Household Rate* = $39.24/month (3% increase from FY2017 or $4.14 per month) Stormwater - Avg. Household Rate* = $7.27/month (6.75% increase from FY2017 or $0.46 per month) Water - Avg. Household Rate* = $28.43/month (3% increase from FY2017 or $0.83 per month) Utility Customer Rates & Fees for Fiscal Year 2018 (July 1, 2017 - June 30, 2018) What’s included in your monthly utility bill? For additional information, visit www.cityofdubuque.org/utilitybilling or call 563-589-4144 DID YOU KNOW? Residents have access to the City’s budget, revenue, and spending via user-friendly websites. Check them out! OPEN BUDGET: dollarsandcents.cityofdubuque.org Explore Dubuque’sOpen Budget Making Sense of Dollars and Cents OPEN EXPENSES: expenses.cityofdubuque.org Explore Dubuque’sOpen Expenses Understanding Expenses Rev. 5/2/17 F Y 2 0 1 5 F Y 2 0 1 6 F Y 2 0 1 7 F Y 2 0 1 8 F Y 2 0 1 9 F Y 2 0 2 0 F Y 2 0 2 1 F Y 2 0 2 2 F Y 2 0 2 3 F Y 2 0 2 4 F Y 2 0 2 5 F Y 2 0 2 6 F Y 2 0 2 7 20% 30% 40% 50% 60% 70% 80% 90% 100% 64% 43% 24% 90% FY2018 Adopted Budget This chart shows the percentage of statutory debt limit in the Fiscal Year (FY) 2018 adopted budget. By FY2027, the City will be at 24% of the statutory debt limit. Statutory Debt Limit Used (as of June 30) $140 $160 $180 $200 $220 $240 $260 $280 $300 $320 M i l l i o n s F Y 2 0 1 5 F Y 2 0 1 6 F Y 2 0 1 7 F Y 2 0 1 8 F Y 2 0 1 9 F Y 2 0 2 0 F Y 2 0 2 1 F Y 2 0 2 2 F Y 2 0 2 3 F Y 2 0 2 4 F Y 2 0 2 5 F Y 2 0 2 6 F Y 2 0 2 7 FY2018 Adopted Budget $296 $228 $146 $282 Total Debt (in millions) Debt is being issued each year, but more is being retired than issued. The City of Dubuque’s use of debt can be compared to many average homeowners who borrow to buy their home. The City has borrowed money at low interest rates to invest in infrastructure. Unlike the federal government, the City does not borrow money to cover operating expenses. Top 10 Debt Uses (as of June 30, 2018) # Project Description Amount Outstanding 1 Water and Resource Recovery Center $67.8 million 2 Stormwater Management $74.2 million 3 Parking Improvements $30.5 million 4 Water Improvements $30.8 million 5 TIF Rebates/Bonds to Businesses $20.9 million 6 GDTIF Incentives/Improvements $22.8 million 7 Sanitary Sewer Improvements $14.0 million 8 DICW Expansions $9.7 million 9 Street Improvements* $4.2 million 10 Airport Improvements $3.6 million Total $278.5 million * $117 million was spent on street improvements from 1997-2016 Debt Reduction Plan Water and Resource Recovery Center Street improvements Parking improvements Stormwater management