Ltr Sen Connolly public strategCity Manager's Office
City Hall
50 West 13th Street
Dubuque, Iowa 52001-4864
(563) 5894110 office
(563) 589-4149 fax
ctymgr@cityofdubuque.org
April 3,2003
VIA E-Mail
mike_connolly@legis.state.ia.us
The Honorable Mike Connolly
Iowa State Senator
3458 Daniels
Dubuque, IA 52001
Re: Public Strategies Group Proposal
Dear Senator Connolly:
The purpose of this letter is to provide information regarding the magnitude of the effect
the Public Strategies Group Proposal would have on the City of Dubuque. The proposal
reduces budgeted revenues by $974,347 through the following recommendations:
· Eliminate reimbursement of the Homestead Tax Credit (cost to City of Dubuque
-$707,751 )
· 20% reduction in Population Allocation Funding (impact -$165,319)
· 20% reduction in personal Property Tax Replacement funds (impact of
-$92,317) and
· 20% reduction in Moneys and Credits Funding (impact -$8,960).
To place this into perspective, you need to first understand that City Council balanced
and certified a FY 2004 budget by March 15, as required by law. To avoid a property
tax increase, the adopted budget included a hiring freeze, rate increases for ail the
City's utilities, a new storm-water utility fee, elimination of all Professional Conference
travel and a reduction in all training budgets, and increases in Building, Zoning, and
Ambulance fees.
These actions were necessary to address a 35% increase in health costs ($1,200,000),
a 20% increase in Police and Fire Retirement rates ($312,000), Property, Boiler, and
General Liability Insurance increases of 15%, reduced State funding of $62,800, and
reduced Utility Replacement Taxes of $156,000.
Service People Integrity Respons~'bflJty Innovation Teamwork
Senator Mike Connolly
April 3, 2005
Page 2
The Dubuque City Council has been fiscally responsible over the years, making
reductions in employment of 65 positions since 1981, an 11% reduction in workforce.
This was accomplished while 15 Police Officer positions were added since 1995.
The City of Dubuque has avoided a property tax increase for the average homeowner
for the last nine years, with five of those years seeing a property tax decrease, including
the current year's 5% reduction. The average homeowner in Dubuque has seen a tax
decrease of 7% over the last nine years on the City portion of their property taxes. This
takes some of the pressure off of the schools and the County as they consider their
budgets.
The City of Dubuque has been fiscally responsible in all areas. If you combine the City
portion of property taxes, the sewer fee, the water fee, the refuse fee and the
stormwater fee, the average homeowner in Dubuque pays only 34¢ more in Fiscal Year
2004 than they paid in Fiscal Year 1995 for their City services.
The impact of the Public Strategies Group Proposal would mean layoff of up to 19
employees, which would mean a drastic reduction of City services. The alternative
would be to increase property taxes by approximately 6.1%; we have been told this
alternative would not be available to Cities.
I strongly urge you to oppose the recommendations of the Public Strategies Group and
continue to urge your support of an effort to take a comprehensive approach to
reviewing the overall tax structures for the State of Iowa.
Sincerely,
Michael C. Van Milligen
City Manager
MCVM:pj
cc: Governor Tom Vilsack
Mayor Terry Duggan
Dubuque City Council
Susan Judkins, Director of Governmental Affairs, Iowa League of Cities
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Pauline Joyce, Administrative Services Manager
Bill Baum, Economic Development Director
The Honorable Mike Connolly
Iowa State Senator
3458 Daniels
Dubuque, IA 52001
The Honorable Roger Stewart
Iowa State Senator
3936 317 Avenue
Preston, IA 52069
The Honorable Pat Murphy
Iowa State Representative
155 N. Grandview Avenue
Dubuque, IA 52001
The Honorable Steven Lukan
Iowa State Representative
7365 Columbus Street
New Vienna IA 52065
The Honorable Julie Hosch
Iowa State Senator
22852 Butterfield Road
Cascade, IA 52033
The Honomble Pam Jochum
Iowa State Representative
2368 Jackson
Dubuque, lA 52001
The Honorable Robert Osterhaus
Iowa State Representative
216 Austin
Maquoketa, lA 52060
The Honorable Gene Manternach
Iowa State Representative
9608 Maple Road
Cascade, lA 52033