Fiscal Year 2012 Operating Budget
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT:
Fiscal Year 2012 Budget Transmittal
DATE:
February 3, 2011
I have tried my best to provide a fiscally responsible budget recommendation that still
achieves the goals and priorities of the City Council. The employees are doing their
part through tireless efforts, exceptional customer service, and by receiving no pay raise
for Fiscal Year 2012. The employees will be enjoying an additional holiday, as they will
be recognizing the Martin Luther King holiday.
The City of Dubuque property tax rate in Fiscal Year 1987 was $14.58 per thousand
dollars of assessed valuation. This is the year before the citizens passed a referendum
in 1987 to establish a one percent local option sales tax with 50% of the revenue going
to property tax relief. The property tax rate for Fiscal Year 2012 recommended in this
budget is $10.4511 which is a 28% decrease from Fiscal Year 1987 and a 4.23%
increase from the FY 2011 rate of $10.0274.
The Fiscal Year 2012 approved budget guidelines call for a 5.00% property tax increase
for the average Dubuque homeowner and a property tax increase for commercial
(4.34%) and industrial (4.34%) properties. The actual budget recommendation
enclosed is for a 4.88% increase for the average homeowner. Since 1989, the average
homeowner has averaged an annual increase in costs in the City portion of their
property taxes of less than 1%, or about $4.68 per year. If the State had been fully
funding the Homestead Property Tax Credit, the increase would have averaged about
$1.26 a year.
A significant cause of this property tax increase is the Municipal Fire and Police
Retirement System increase in City contribution. The current payment of 19.90% of
Police and Fire employee salary is mandated by the State to increase to 24.76% of
salary, for an additional cost of $611,055 in FY 2012 or a 3.00% property tax increase
for the average homeowner. In addition, the Iowa Public Employees’ Retirement System
increased the required City contribution rate from 6.95% to 8.07%, which is an
additional cost of $141,362 in FY 2012 or a 0.69% property tax increase for the average
homeowner. Therefore, increased pension costs account for 3.69% of the 4.88%
property tax increase for the average Dubuque homeowner.
The City has been able to minimize the impact of the cost of City services to the
average homeowner in spite of the fact that gaming lease revenues have decreased
$16.1 million from FY 2009 through FY 2016. When the Diamond Jo expanded, it was
projected that Dubuque Racing Association lease revenues would decrease 21%, but
the actual decrease has been 32%.
The fact that the City of Dubuque and East Central Intergovernmental Association have
received two federal grants totaling $3.8 million to replace the entire KeyLine (The Jule)
bus fleet will be of great assistance to the annual operating budget. The reduced fuel
and maintenance costs in FY 2012 are estimated at $325,000, which avoids an
additional property tax impact of 1.59%.
The City of Dubuque can only hope that the Iowa State Legislature does not adopt
Governor Terry Branstad’s proposed budget. The Governor’s budget would cause large
property tax increases and/or severe service cuts.
Property Tax Increase to the Average Homeowner
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Total
Current Recommended Projections 4.88% 11.73% 10.55% 6.71% 5.46% 39.33%
**Revised Projections with Governor
Branstad's Budget Implemented 8.02% 44.36% 16.02% 11.55% 10.25% 90.20%
* Average Homeowner is equivalent to a house with assessed value of $130,367.
**Includes reduction of commercial property taxes of 8% per year beginning in Fiscal Year 2014; State
reimbursement of 50% of the commercial property tax revenue loss; Mystique Casino closing in Fiscal Year 2013;
General Fund providing $604,280 per year for tax increment financing obligations; and State Homestead Property
Tax Credit funded at current level of funding of 64%.
The City Council will conduct six public meetings prior to the adoption of a City budget
in March 2011.
I was fortunate enough to be invited to speak to the Dubuque Area Chamber of
Commerce Business Forecast Luncheon in January 2011. The theme of my speech
looked at the history of Dubuque from the mid-60’s to today – showing boom, bust, then
boom again. What will the future bring?
In 1997, the City planned to purchase 900 acres of cornfields south and west of
Dubuque for three new industrial parks. Some people questioned the wisdom of those
purchases at the time but the City Council was convinced additional space was needed
to accommodate existing businesses. Today, there are 29 businesses in 25 buildings in
those parks employing 2,215 people. Of those 29 businesses, 25 are existing Dubuque
businesses.
I expect continued growth from our existing businesses in 2011. According to a recent
report from Greater Dubuque Development Corporation Vice President Dan McDonald,
approximately 47% of area businesses intend to expand or invest in their business this
year. With that in mind, the City of Dubuque is pursing plans to grade more of the 900
acres of industrial park property.
In 2009, Dubuque had a local experience with what is becoming a national issue, a lack
of apartments. Nationally, an additional 3 million people were looking to rent an
apartment in 2009 than in 2006. The development of the Historic Millwork District and
other projects should help locally.
I located a Dubuque Country Club publication from 1965, that talks of Dubuque’s
strength as a “strategic, industrial wholesale, and retail center dominating a vast tri-state
marketland … while unemployment is at 1.5 percent, the lowest ever recorded.”
In 1965 things were going great. Fast forward just 18 years. “The Dubuque
Connection,” a 1983 Chamber of Commerce newsletter, describes what sounds like a
completely different city.
“Dubuque’s plight is becoming desperate. It suffered more severely during the recent
recession, and has for the past three years had the highest unemployment rate of
Iowa’s largest cities. That unfortunate fact is no surprise to Dubuquers. It has been
losing both industry and retail business consistently for the past decade. … Dubuque is
losing its people. Recent estimates show 10% of the housing stock vacant or available
for sale.”
What happened?
There were a number of factors that converged and resulted in the 1980’s as one of the
worst decades in Dubuque’s history. I definitely remember my first day of work here in
1993 when I opened the City’s Comprehensive Plan only to find out it was dated 1936.
That plan has been replaced. There are a lot of people who rose to the challenge and
were instrumental in Dubuque recovering from the recession of the 1980’s.
In 2010 Dubuque was not immune to the effects of the national recession, but
compared to some parts of the country, Dubuque did well.
• In January, the City began its community-wide water meter replacement project,
replacing over 22,000 meters with new meters which have greatly increased
metering accuracy and efficiency and feature automated meter reading abilities,
eliminating the need to manually read 22,500 meters every month. The new
meters are also equipped with unmeasured flow reducers, or UFRs,
manufactured right here in Dubuque by AY McDonald Manufacturing.
• In February, the City was notified that the U.S. Department of Transportation
awarded Dubuque’s Historic Millwork District Revitalization Project a $5.6 million
grant through the TIGER Program, a lead program of the American Recovery
and Reinvestment Act of 2009. The street reconstruction project has been bid
and will be complete in 2012.
• In March, the City of Dubuque hosted its third annual “Growing Sustainable
Communities Conference” at the Grand River Center. This year’s conference
theme was “Sustainability: A Tool for Community and Economic Development.”
• In April, U.S. Commerce Secretary Gary Locke announced a $1.5 million
Economic Development Administration grant was awarded to the City of
Dubuque to assist in the construction of a 477-space parking ramp at 10th Street
and Central Avenue in downtown Dubuque. That project is in full swing, as
evidenced by the towering crane that will temporarily be a part of our downtown
skyline.
• In April, Forbes ranked Dubuque first in the nation among mid-sized cities for
projected job growth. That same month, Forbes ranked Dubuque 15th in the
nation in Forbes’ annual “Best Small Places for Business and Careers.”
• In May, the Iowa Power Fund Board approved a $1.4 million grant to the City of
Dubuque to assist in the advancement of the Smarter Sustainable Dubuque
Initiative, a multi-partner project including IBM and Interstate Power and Light, to
analyze the consumption of energy in the community. There are currently two
pilot studies underway through the Smarter Sustainable Dubuque Initiative:
Smarter Water and Smarter Electricity. The City will soon begin recruiting
volunteers for pilot studies in natural gas and transit/mobility. The Smarter
Sustainable Dubuque Initiative seeks to provide information to citizens so that
they can make smarter choices related to resource consumption.
• In July, construction began on Phase I of the Bee Branch Creek Restoration
Project, a $49 million multi-phased project to protect more than 1,150 residential
and non-residential properties on the City’s North End from storm water flooding
during major rain events. Construction began this past summer after years of
planning and study and will restore the historic Bee Branch Creek, which was
buried in a storm sewer more than a century ago. The creek will be “daylighted,”
protecting at-risk properties, improving public safety, and greatly increasing the
capacity of the storm water management system. It will also create a mile-long
linear park stretching from the Mississippi riverfront at Chaplain Schmitt Memorial
Island to Comiskey Park at 24th Street in the heart of Dubuque’s historic North
End neighborhood. Almost $12 million of the cost will be paid through
community fundraising, a State I-JOBS grant, a State Vision Iowa RECAT grant,
and a State Department of Natural Resources grant. Most of the remaining costs
are funded with a State low-interest loan, repaid with stormwater fee revenues.
• The Government Finance Officers Association (GFOA) of the United States and
Canada awarded the City of Dubuque the Distinguished Budget Presentation
Award for the City’s budget documents for the fourth consecutive year. In
addition, the GFOA awarded the City of Dubuque a Certificate of Achievement
for Excellence in Financial Reporting for the City’s Comprehensive Annual
Financial Report (CAFR) and this is the 22nd consecutive year the City of
Dubuque has received this recognition.
• In October, the City initiated the most expensive capital improvement project in
Dubuque’s history, the $64 million renovation of the Water Pollution Control
Plant. The new plant will feature anaerobic digestion, a design option with the
highest initial capital costs, but the lowest annual operating and maintenance
costs. Additionally, this option was the most sustainable when the costs were
weighed against the long-term benefits and the environmental impact. This
project is being funded by a low-interest state revolving loan fund, which will be
repaid with sanitary sewer user fees.
• Construction has begun on the number one transportation priority, the Southwest
Arterial, the $125 million, 6.1 mile, four-lane, divided freeway that will provide an
alternative route for traffic through southwestern Dubuque.
• For the third consecutive time, Dubuque was named one of the nation’s 100 Best
Communities for Young People by the America’s Promise Alliance. The City was
also named the 2010 Healthy Iowa Community by the Academy for a Healthy
Iowa, a collaboration between the Iowa Department of Public Health, Governor’s
Council on Physical Fitness, and Nutrition and Wellness Council of Iowa.
• Forbes named Dubuque the “Best Small City to Raise a Family” for 2010.
• In November, Dubuque was named a third-place finalist and gold-standard
community at the International Awards for Livable Communities (LiveCom).
Dubuque was the highest-ranked American city in the “whole city” award
category for communities with populations of 20,000 - 75,000.
• The Dubuque Regional Airport received its 20th consecutive year of perfect
compliance with Federal Aviation Regulation (FAR) Part 139. FAR Part 139
governs safety standards for airfield operations, safety, and maintenance at
airports served by commercial airlines.
• In December, a public support campaign for the “America’s River III: Bee Branch
Creek Restoration and Gateway” project was announced by the City of Dubuque
and the America’s River Corporation. This campaign will support the amenities
portion of the Bee Branch project, which is designed to make the project area a
community attraction through the incorporation of amenities including hike/bike
trails, gazebos, overlooks, an amphitheater, benches, lighting, and 1,000 new
trees.
• Fast Company magazine named Dubuque one of the Top 10 Smartest Cities on
the Planet, the only one in the United States.
• Mayor Roy Buol appeared on the cover of Connected World magazine. After
naming Mayor Buol one of the top ten innovators in the country in 2009, this
issue was naming Dubuque one of the seven most connected cities in the world.
• The Dubuque Area Chamber of Commerce received Five Star Accreditation from
the U.S. Chamber of Commerce and the Greater Dubuque Development
Corporation received a first place ranking for service to existing business from
Business Retention and Expansion International.
• Forbes Magazine selected Dubuque #1 in the nation among mid-sized cities for
projected job growth.
• MSN ranked Dubuque #3 in the nation for job growth.
• Moody’s/Economy.com ranked Dubuque #7 in the U.S. for job growth 2008-
2013.
• Forbes ranked Dubuque #15 in the nation among “Best Small Places for
Business and Careers.”
• In 2010 the City of Dubuque was featured in a 10-minute story on “BluePrint
America,” a PBS NewsHour series on infrastructure, which chronicles Dubuque’s
progress.
Look ahead, not just to 2011, but to 2030 . . . what’s the forecast for Dubuque? Can
Dubuque expect another pendulum swing similar to 1965 to1983? Or is Dubuque up to
the challenge to insure that doesn’t happen and Dubuque continues to move ahead
through planning, partnerships, and people?
In his 2005 campaign for Mayor, after having served on the City Council for 10 years,
Roy Buol said, “The next five years will determine the next 50 years for Dubuque.” I
would contend that with the creation by the community of Sustainable Dubuque, those
words are proving to be very true.
As a community initiative and the top priority of the City Council, Sustainable Dubuque
is creating a viable, equitable, and livable community embracing economic prosperity,
environmental integrity and social/cultural vibrancy. Sustainable Dubuque will help save
money and resources while creating jobs.
I don’t think you have to be a Green Bay Packer fan to respect the words of their
famous Coach Vince Lombardi. It would do us well to heed his words, “Success is like
anything worthwhile. It has a price. You have to pay the price to win and you have to
pay the price to get to the point where success is possible. Most important, you must
pay the price to stay there.”
The challenge before us is to acknowledge and celebrate our successes but to never
forget the lessons of the past and to continue to plan and partner for continued progress
to create a truly Sustainable Dubuque.
Over the last year the Safe Community Task Force has made a series of
recommendations to address crime issues in Dubuque. The City Council has been
implementing those recommendations and awaits the final set now that the crime study
has been completed by the Northern Illinois University Center for Governmental
Studies.
The study showed that Dubuque was a safe place, ranking third lowest in serious crime
and 17% below average of the 10 largest cities in the State of Iowa. However, for
Dubuque, average is not good enough. One disturbing result of a telephone survey
revealed 71% of the over 500 survey respondents were afraid to come downtown at
rdnd
night. Downtown was not defined, so we do not know if they meant 3 and Main or 22
and Central, and it makes no difference because that result is unacceptable.
Tracking Part I Crimes (the most serious) shows that crime peaked in calendar year
2007.
PART I CRIMES CALENDAR YEAR 2003-2010
CY10 %
CY10 % Over/
Over/ Under
Under Peak
PERFORMANCE MEASURES CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 AVERAGE Average Year
Number of Crimes Against Persons 109 95 118 121 149 122 118 99 116 -14.7% -33.6%
Murder 1 1 1 0 1 0 2 1 1 0.0% -50.0%
Sexual Assault 52 41 48 61 72 54 43 38 51 -25.5% -47.2%
Robbery 20 12 14 19 40 31 35 36 26 38.5% -10.0%
Aggravated Assault 36 41 55 41 36 37 38 24 39 -38.5% -56.4%
Number of Crimes Against Property 1,999 2,119 1,996 2,084 2,327 2,284 2,067 2,038 2,114 -3.6% -12.4%
Burglary 422 464 437 501 669 526 519 503 505 -0.4% -24.8%
Burglary to MV 308 389 276 370 366 510 420 399 380 5.0% -21.8%
Theft 1,185 1,176 1,239 1,151 1,229 1,185 1,072 1,102 1,167 -5.6% -11.1%
Theft of MV 84 90 44 63 63 56 34 62 -45.2% -62.2%
TOTAL 2,108 2,214 2,114 2,205 2,476 2,406 2,185 2,137 2,231 -4.2% -13.7%
Shaded Highlight is Peak Year
Calendar year 2010 incorporates a correction in the method for reporting Aggravated Assaults to the Uniform Crime Reports to comply with the UCR rules.
The former reporting method would have shown 53 aggravated assaults. The 29 assault difference are now classified as simple assaults. Correction of
this error in counting Aggravated Assaults was not done for the years prior to 2010, so those numbers are overstated.
2004-2009 Average UCR Part I Crimes (plus
Simple Assaults): Rates per 10,000 Population
UCR = Uniform Crime Report
1,200
1,044
1,003
1,000
835
800
690
Crime Rate
671
641
624
552
600
425
406
372
400
200
0
Davenport
Cedar RapidsDubuque
Iowa City
Council BluffsAverage (9 cities)
Des MoinesWaterlooSioux City
Ames
West Des Moines
The City Council’s top priority is maintaining Dubuque as a safe community. The Mayor
and City Council have appointed a citizen task force called the Safe Community Task
Force in furtherance of that goal and the Task Force has made some recommendations
and will be making more recommendations. This budget recommendation includes
some improvements related to community safety.
A safe community is not just about adding more police officers, though the City Council
is adding 15 police officers over four years, with the final one in this budget
recommendation, increasing the size of the Police Department of sworn and unsworn
employees by 16% as compared to FY 2007.
A safe community is not just investing in arts and cultural organizations and activities,
though this budget maintains the City’s commitments in these areas and adds a part-
time position in the Multicultural Family Center.
It is not just appropriately managing the Federal Section 8 Housing Program; however,
major changes, including reducing the number of available vouchers by 15% and
increasing the family self-sufficiency staff were implemented in the current fiscal year.
It is not just calling for better property management; however, a centralized background
check for tenants, better notification to landlords about problems at a property and
tougher enforcement of property maintenance are in this budget.
It is not just eliminating things that damage property and put people at risk, but this
budget recommends further implementation of the Drainage Basin Master Plan and
reconstruction of the Water Pollution Control Plant.
It is not just neighborhood beautification and removal of blighting conditions, but the City
is planting more flowers, paving alleys, purchasing and repairing vacant and abandoned
buildings, creating more lighting and supplying garbage containers.
It is not just investment in the neighborhoods, though the budget supports the
Washington Neighborhood Development Corporation, home ownership, video camera
surveillance and neighborhood associations.
It is not just investing in people, but this budget does support St. Mark’s, Opening
Doors, Project H.O.P.E., Every Child | Every Promise, Family Self-Sufficiency, Getting
Ahead in Just-Gettin’-By World, Head Start, Transit enhancements and the City
supported the East Central Intergovernmental Association/Northeast Iowa Community
College Green Jobs Training Grant.
It is not just investing in job creation; however, the City will, in partnership with the
Washington Neighborhood Development Corporation and Greater Dubuque
Development Corporation. The City is also providing developers at the former Dubuque
Pack site, in the Historic Millwork District, at the Port of Dubuque and at the Roshek
Building, with Tax Increment Financing.
It is not just about maintaining the City’s infrastructure, but there are major investments
in water lines, street program, sanitary sewer and storm sewer improvements.
It is not just partnering to lower costs and create jobs by providing information to
residents and businesses about their energy, transportation and water use through
Sustainable Dubuque and in partnership with the Community Foundation of Greater
Dubuque, Dubuque Area Chamber of Commerce, Greater Dubuque Development
Corporation, City of Dubuque Smarter City, and Dubuque 2.0. Not because it is the
right thing to do, but because it is the right thing to do for businesses and residents.
A safe community is about all these things and about receiving input from the
community on what to do and how to do it and that input will be coming from the Safe
Community Task Force during 2011, with monitoring of implementation by the recently
created Safe Community Committee.
You can see that progress is being made on the crime issue, but there is much, much
more that needs to be done.
Since 2006, the Mayor and City Council have identified becoming a more Sustainable
City as a top priority. Again this year the Council has included sustainability in their
priorities. In fact, last year the City Council added sustainability to the City’s Five Year
Goals, Vision, and Mission Statement.
These Council directives, in addition to the community-defined vision that “Dubuque is a
viable, livable, and equitable community,” guided the City’s activities in Fiscal Year 2011
and will continue to do so in Fiscal Year 2012. In tight economic times, sustainability
can be a strong lens through which to make policy decisions and can be a tool for
community and economic development in Dubuque.
The City of Dubuque is becoming a more sustainable city by using the community-
defined vision of sustainability and the 11 sustainability principles to guide capital
project decisions, budget decisions that directly impact Dubuque residents and
businesses, and the development of public/private partnerships that help to achieve the
goals.
Proposed capital projects are analyzed using a long-term cost-benefit analysis that
focuses on environmental integrity, economic prosperity, and social/cultural vibrancy.
The Southwest Arterial is being designed to minimize construction and vehicle traffic’s
environmental impact in the most cost-effective way possible, including elimination of
truck traffic from the downtown and residential streets, allowing for the development of
complete streets in these areas, while creating opportunities to help existing businesses
grow and attract new jobs to the area.
The City is investing in the redevelopment of the Historic Millwork District. The use of
stormwater management best practices and complete streets concepts will result in
cleaner water and improved, walkable streetscapes with easy access to public
transportation. The City is also developing green space in the District, working with
developers to provide incentives that will revitalize green buildings containing mixed-
income housing, and assisting in the rehabilitation of buildings that will provide many
opportunities for the growth of the regional economy.
Additional projects including the Green Alley pilot in the Washington Neighborhood,
nd
improvements to the former Housing and Community Development offices at 22 and
Central, ADA-compliant curb reconstructions, Keyline Public Transit improvements with
the replacement of the entire fleet with clean diesel through over $4 million in federal
grants, Bee Branch project, and construction of a new Wastewater Treatment Plant help
Dubuque become more sustainable.
Historic preservation is defined as one of the truest forms of sustainability. The City’s
Downtown Rehabilitation Loans, Historic Preservation Loans, Homeowner
Rehabilitation Program, and Homeownership Grants in Targeted Neighborhoods enable
businesses and residents to implement sustainability concepts into their neighborhoods.
Additional American Recovery and Reinvestment Act dollars received last year will
finance energy audits and retrofits in Dubuque businesses and residences.
The City organization cannot achieve community sustainability alone. The Smarter City
project, in partnership with IBM, the State of Iowa Office of Energy Independence, the
Federal government and others, will give the Dubuque community access to technology
and data that will guide better decisions about the way we use resources, create jobs,
and save Dubuquers money. City staff also appreciates Dubuque 2.0, a community
engagement initiative around sustainability conducted by the Community Foundation of
Greater Dubuque and the Dubuque Area Chamber of Commerce, with funding from
Mystique Casino, and our partners in the HEART YouthBuild program, Every Child |
Every Promise, ECIA’s Petal Project green business certification program, Proudly
Accessible Dubuque, and many other community-led initiatives that are helping
Dubuque become a more Sustainable City.
The City Council has decided that job growth and economic development are very
important.
Will 2009-2010, the period of the greatest national economic downturn since the Great
Depression, be a period in which Dubuque sees the greatest job growth in the last 50
years?
In March 2009, six months after the meltdown of the international financial markets, the
Mayor and City Council passed the Fiscal Year 2010 City budget with no property tax
increase for the average homeowner and added $1 million to the City’s reserves to
prepare for any potential local fiscal emergency caused by the international crisis.
Almost two years later, the City has seen slower growth than had previously been
projected. There have also been job losses. Dubuque County now has a 6.4%
unemployment rate as compared to the national unemployment rate of 9.4%, and other
local unemployment rates of 9.2% in Janesville, Wisconsin, and 13.0% in Rockford,
Illinois. Locally, unemployment rates have shown signs of decreasing. Nationally, the
federal government reported that the Great Recession is ending and the national
economy is reviving.
The City is well positioned to take advantage of the revival of the national economy with
economic development projects that are expected to add hundreds of jobs to the local
economy.
Several significant projects are designed to continue the City’s momentum, while also
having the side benefit of short-term construction job creation.
The City just completed an expansion of Dubuque Industrial Center West, providing a
location for existing companies to expand and new companies to come to Dubuque and
will be implementing creation of a new industrial park off of Highway 20 at Seippel
Road.
The completion of the 255,000 square foot Roshek Building renovation not only helped
preserve the McKesson print shop jobs in the lower level and provided space for IBM to
create 1,300 jobs; it preserved an anchor for the downtown that will be LEED certified
and on the National Historic Register.
The partnership on the renovation of the over one million square feet of space in the
Historic Millwork District will provide new residential, commercial, and retail space that
both adjoins the Washington Neighborhood and the downtown, providing hundreds of
long-term jobs and hundreds of living units when the rental vacancy rate is less than
4%. The City has received over $20 million in grants and low-interest loans to
implement the Historic Millwork District Master Plan.
The City’s partnership on redevelopment of the riverfront is unabated. Examples
include the recent completion of the A.Y. McDonald Park, the Port of Dubuque Public
Parking Ramp, the Mystique Ice Center on Chaplain Schmitt Island by Dubuque Ice &
Recreation Center, Inc. (DICE), along with bringing U.S.H.L. hockey back to Dubuque,
the expansion of the National Mississippi River Museum and Aquarium with the creation
of the Rivers to the Sea and the outdoor amphitheater connecting the two facilities, the
transient boat docks and the partnership with Newt Marine to revitalize the South Port
th
and the America’s River III Project along 16 Street creating amenities, along with the
Bee Branch Creek Restoration Project. Master Planning will commence in Fiscal Year
2012 for Schmitt Island.
The City continues implementing important transportation projects. Parts of Central
Avenue will be resurfaced with 139 lead service lines from the water main to the shut-off
valve replaced. Property acquisition and final design continues on the Southwest
Arterial, and construction began in 2010.
Other projects include the replacement of 22,000 City water meters, Airport new
Terminal design, site work, and utility improvements, Sunset Ridge reconstruction and
the Brunskill Road Bridge replacement.
Let’s put this investment in Dubuque’s economic future by government, not-for-profits
and private industry into historical context. Greater Dubuque Development Corporation
Vice President Dan McDonald provides the following historical information on job
creation in Dubuque County and some insights into what to expect in 2011.
Dubuque’s Economy:
A Tale of Two Cities and Two Recessions
Dubuque’s economy has weathered the most recent downturn much better than it did
during the height of the recession in 1982/1983. Put another way, Dubuque’s story is
not only a tale of two recessions; it’s a tale of two cities. Based on the latest numbers
released from Iowa Workforce Development (through December 2010) Dubuque has
fared better against both “itself” and the entire State of Iowa:
According to Iowa Workforce Development’s (IWD) annual averages, Dubuque
added 16,400 jobs between 1982-2010 (from 37,600 to the current 2010 annual
average of 54,000);
Dubuque’s employment base increased by 43.6% since the last major
recession;
By way of comparison, the State of Iowa (even with Dubuque jobs included) grew
by 12.98% or 169,4000 jobs during the exact same period;
Dubuque’s economy created 9.68% of Iowa's net gain of 169,400 jobs for the
past 28 years;
Based on its population within Iowa (3%), Dubuque carried almost three times its
own weight and created almost 1 out of every 10 jobs.
New Numbers Validate Dubuque’s Growth
Based on IWD's final reporting periods for 2010 (both November and December)
Dubuque is at/near the top for job growth within the State of Iowa:
November 2009 - November 2010
Iowa statewide total of +7,500 net jobs (includes a net loss of government jobs /net gain
of private sector jobs)
1. Dubuque +700 net new jobs (9.3% of entire statewide total)
2. Waterloo/Cedar Falls +500 (6.6%)
3. Davenport +430 (5.7%)
4. Ames +200 (2.6%)
5. Council Bluffs - No Change
6. Cedar Rapids net job loss of -400
7. Iowa City net job loss of -800
8. Sioux City net job loss of -900
9. Des Moines net job loss of -1,100
December 2009-December 2010
1. Davenport +2,150 jobs / 2.5% growth rate (13.9% of Iowa's entire statewide total
15,400 net jobs)
2. Dubuque +1,300 jobs / 2.4% growth rate (8.4% of entire statewide total)
3. Iowa City +1,000 / 1.1% (6.4%)
4. Council Bluffs +420 / 1.1% (2.7% of Iowa total)
5. Waterloo/Cedar Falls +800 / 0.9% (5.1%)
6. Ames +200 / 0.4% (1.2%)
7. Des Moines net job loss of -200 / -0.1%
8. Cedar Rapids net job loss of -400 / -0.3%
9. Sioux City net job loss of -600 / -0.8%
*By way of comparison, the previous year (a mirror snapshot) December
2008/December 2009, Dubuque lost -1,900 jobs;
Metro Reliance on Government Jobs
1. Iowa City 37.1% of all jobs in area's economy
2. Ames 30.6%
3. Waterloo/Cedar Falls 17.9%
4. Council Bluffs 14.1%
5. Des Moines 13.3%
6. Sioux City 12.6%
7. Cedar Rapids 12.2%
8. Davenport 9.9%
9. Dubuque 8.56% (in 2009, this number was actually higher, 8.67%)
Dubuque’s Existing Businesses Show Confidence:
Fueling Growth and Generating Economic Heat
Based on Greater Dubuque Development's formal meetings with 209 business owners,
CEO's, and top-managers, Dubuque businesses are moving into 2011 and beyond with
a distinct, increased level of confidence. Consider just a few insights:
Approximately 47% of Dubuque area businesses, small and large, intend to
expand in one way or another including new jobs, new equipment, new
construction, new capabilities (up from 43% the previous year);
Projects and bursts of hiring (from both large and small companies) are moving
ahead and expected to continue during 2011, including but not limited to, IBM,
Hormel, Medline, Eagle Point, Berry Plastics, Sedgwick CMS, Schieffer
International, and others;
Dubuque's newcomer program is serving/has served more than 60 existing
businesses, all of which are hiring and recruiting talent to Dubuque;
Approximately 56% of businesses are gaining market share against competitors
(up from 53% the previous year). According to Dubuque area CEO's, this will
fuel possible job growth and capital needs;
There is positive, overwhelming perception about the strength of Dubuque's
economy versus other locations in the region and the U.S, as well as strong
approval of local leadership and Dubuque's public-private sector cooperation.
What Others are Saying About Dubuque’s Economy:
Dubuque ranked #1 in U.S. for Projected Job Growth (2010 Forbes Magazine);
Dubuque ranked #7 in U.S. for Projected Job Growth (2010
Moody’s/Economy.com);
Dubuque ranked #3 in U.S. for Projected Job Growth (2010
MSN/CareerBuilder.com).
Comparing the Dubuque unemployment rate with the U.S. unemployment rate annually
since 1980 would indicate that the City is weathering the economic downtown better
than others and better than the City did in the past, indicating that the City is well
positioned to benefit from an economic recovery.
Historical Chart – Unemployment Rate
1980-2010
Annual Unemployment Rate
Year Dubuque United States
1980 8.6 7.1 +1.5
1981 10.7 7.6 +3.1
1982 14.2 9.7 +4.5
1983 12.1 9.6 +2.5
1984 8.5 7.5 +1.0
1985 9.6 7.2 +2.4
1986 7.8 7.0 +0.8
1987 6.1 6.2 -0.1
1988 5.5 5.5 0.0
1989 6.0 5.3 +0.7
1990 5.9 5.6 +0.3
1991 6.1 6.8 -0.7
1992 5.5 7.5 -2.0
1993 4.1 6.9 -2.8
1994 3.7 6.1 -2.4
1995 3.7 5.6 -1.9
1996 5.8 5.4 +0.4
1997 3.9 4.9 -1.0
1998 3.2 4.5 -1.3
1999 2.7 4.2 -1.5
2000 3.3 4.0 -0.7
2001 3.7 4.8 -1.1
2002 3.5 5.8 -2.3
2003 4.2 6.0 -1.8
2004 4.5 5.5 -1.0
2005 4.4 5.1 -0.7
2006 3.8 4.6 -0.8
2007 4.0 4.6 -0.6
2008 4.3 5.8 -1.5
2009 6.1 9.3 -3.2
Dec 2010* 6.4 9.4 -3.0
*Unlike the annual average for all years, 2010 is based on
current/monthly figure
From 1980 to 1990, the Dubuque unemployment rate was less than the national
unemployment rate only once. Since 1991, the Dubuque unemployment rate has been
lower than the U.S. unemployment rate 19 of those years, with only one (1996) being
higher by 0.4%. The national unemployment rate in December 2010 was 9.4% and the
Dubuque rate was 6.4%.
Looking back over the last four years, it now seems clear that the area started to
succumb to the national recession in April of 2008, with 55,500 employed in Dubuque
County. For a number of years prior to that, month-to-month, the area had experienced
steady and significant growth in employment numbers. April 2008 began a steady
decline in numbers that seemed to bottom out in May 2009, when it is estimated the
area had 54,100 working in Dubuque County, which was down 2,400 from May 2008.
Since May 2009, the area has steadily climbed out of the deepest valley of the
recession. When this progress is combined with the inclusion of the new growth from
new employers, Dubuque could be back to previous employment highs by June 2011.
Comparing property sales in Dubuque would seem to indicate a bottom occurred in
2008. In 2007 there were 923 residential sales, in 2008 there were 669, in 2009 there
were 744, and in 2010 there were 691. In 2007 there were 70 commercial sales, in
2008 there were 43, in 2009 there were 49, and in 2010 there were 54.
The City is accomplishing this progress by leveraging outside resources. The $40
million Roshek Building renovation being done by Dubuque Initiatives, in a contract with
Gronen Restoration, used local bank financing (guaranteed by the City) and tens of
millions of dollars of State Historic Tax Credits and Federal New Market Tax Credits.
The Hotel Julien used millions of dollars of State Historic Tax Credits, Federal Historic
Tax Credits and Federal New Market Tax Credits. Over a 12-month period from 2008
to 2009, the City of Chicago had projects that used $60 million in Federal New Market
Tax Credits while the City of Dubuque had over $41 million in projects that used Federal
New Market Tax Credits.
Projects in the City of Dubuque received over $10 million in Vision Iowa grants in 2009-
2010, including the Dubuque County Historical Society and DICE. The City has an
application pending with Vision Iowa for $2.4 million for the Bee Branch Restoration
Project. The $3 million dollars the City received from the Federal government to pay
75% of the cost of transient boat docks helped leverage some of these Vision Iowa
dollars.
The following tables identify all grant funds awarded in FY 2010. Grant funds awarded
to date in FY 2011 are also included, though as many of these grant agreements are
currently under contract negotiations or implementation is in process, final FY 2011
grant totals may change slightly.
FUNDS AWARDED TO CITY: All ARRA Funds Received Since ARRA Passage in Feb '09 & Non-
ARRA Grants Received FY '10 & YTD '11
Project Program/Grant Agency Amount
Title
ARRA FUNDING
Complete Streets in Millwork TIGER US DOT $5,600,000
District
Smart Water Meters SRF Green Projects Iowa SRF/IA DNR $1,000,000
US 52 Traffic Flow Optimization State Competitive Iowa OEI $500,000
EECBG
3 Keyline Bus Replacements State Revolving SRF $384,939
Funds
North Fork Catfish Creek State Revolving Iowa SRF/IA DNR $337,000
Stormwater & Sanitary Sewer Loan Fund
Improvements
1 Keyline Transit Bus Federal Transit FTA $349,000
Replacements Administration
KeyLine Medical Loop ICAAP IDOT $300,160
EECBG Comprehensive EECBG Formula US Dept of Energy $574,700
Strategy Funds
Homelessness Prevention Homelessness US HUD $502,294
(Subcontractor: Project Prevention Funds
Concern)
Neighborhood Stabilization: Neighborhood US HUD $444,000
Foreclosed Homes Stabilization
Program
Multiple: Dare to be King, Justice Assistance US Dept of Justice $360,320
Multicultural Center office for Grant (JAG)
COP, TAD initiatives (ptnr w/
Dbq Co), Citizen Police
Academy funds, 2 traffic safety
unit vehicles, Dubuque Drug
Task Force funds (ptnr w/ Dbq
Co)
Green Alley Project CDBG Formula US HUD $328,269
Funds
Americorp (YouthBuild & Americorps Americorps $186,201
MCFC, Crescent, & Project
Hope)
Green Alley Project SRF Green Projects Iowa SRF/IA DNR $41,400
18th & Central Building energy State Energy Iowa OEI $69,831
improvements Program
KEY NON-ARRA
Smarter Sustainable Dubuque Iowa Power Fund Iowa OEI $1,400,000
Caradco Building CDBG US HUD $8,900,000
Bee Branch I-JOBS State of Iowa $3,950,000
Green & Healthy Homes US HUD $1,000,000
Initiative
Lead Paint Remediation US HUD $3,090,000
Workforce housing (loan) Iowa Finance $1,500,000
Authority
SW Arterial I-JOBS State of Iowa $558,967
Arts Coordinator Salary Iowa Community Iowa Dept of $13,021
Cultural Grant Cultural Affairs
Phase I ARC Transfer Center PTIG Grant Iowa DOT $289,375
10th & Central Parking Ramp US EDA $1,500,000
ADDITIONAL NON-ARRA FUNDS RECEIVED FY '10
US Dept of Commerce $7,727
US Dept of HUD $8,278,137
US Dept of Interior $611,177
US Dept of Justice $100,302
US Dept of Transportation $12,011,417
US EPA $416,663
US Dept of HHS $22,921
US Dept of Homeland Security $1,546,722
US Corporation for National & $209,528
Community Service
Iowa Alcoholic Beverages $8,850
Division
Iowa Dept of Natural Resources $235,000
Iowa Dept of Transportation $3,497,645
Iowa Dept of Cultural Affairs $413,005
Iowa Dept of Econ $681,040
Development
Iowa Finance Authority $250,000
Iowa Dept of Public Health $23,865
TOTAL Funds Awarded to Date $61,493,476
FUNDS AWARDED TO PARTNERS: All ARRA Funds Received Since ARRA Passage in Feb '09 &
Non-ARRA Grants Received FY '10 & YTD '11*
Project Program/Grant Agency Amount
Title
ARRA FUNDING
SW Arterial (DMATS) US DOT $2,909,534
Weatherization (Recipient: US Dept of Energy $3,100,000
Operation New View)
Green Jobs Initiative (Recipient: Green Jobs US Dept of Labor $2,100,000
ECIA) Program
Multiple: Dubuque Community US Dept of $8,824,054
School District Education
Crescent Community Health Health Resources $551,859
Center Service Assn
Grand Opera House/Dubuque Arts & ARRA National $25,000
Symphony Endowment for
Arts
KEY NON-ARRA
Replacement of Keyline fleet State of Good US DOT $2,300,000
(Recipient: ECIA) Repair
Replacement of Keyline fleet Clean Fuels US DOT $1,500,000
(Recipient: ECIA)
Mystique Ice Arena IJOBS/CAT $675,000
NMRMA IJOBS/RECAT $1,230,000
Dubuque 2.0 Toolkits IPF Community Iowa OEI $50,000
Grants
Sustainable Loras IPF Community Iowa OEI $50,000
Grants
Dubuque Colts Iowa Culture Trust Iowa Dept of $2,500
Grant Cultural Affairs
TOTAL Funds Awarded to Date $23,317,947
*This document does not include all partner grants, only grants City staff were directly involved in
securing and/or administering.
GRAND TOTAL State & Federal Funds, 7/1/09-current
$84,811,423
In addition, the City has submitted two applications for support of the Bee Branch Creek
Restoration project (Vision Iowa RECAT: $2,400,000 and IDNR "Green Project":
$4,430,000).
All this is helping the City keep the tax burden on citizens reasonable when compared
with the other nine cities in the State of Iowa with a population in excess of 50,000.
Recognizing that there is a great deal of uncertainty around the national economy,
which has spilled over to negatively affect the local economy, the recommended Fiscal
Year 2012 budget includes adding $250,000 (assuming this year’s snow removal costs
do not exhaust this money) to the continued allocation of $1 million in the uncommitted
cash reserve general fund balance which was set aside by the Mayor and City Council
in FY 2010, which is normally an amount that equals 10% of the general fund operating
expenses, to help weather any economic downturn with a minimal impact on the
delivery of services. In addition, it is recommended to continue the additional $500,000
added to the one-time reserve in FY 2011 due to the possibility of needing to boost the
health insurance reserve in FY 2012.
It should also be noted that the State of Iowa has underfunded the Homestead Property
Tax Credit five years in a row, causing the average homeowner to pay more for their
City portion of property taxes (Fiscal Years 2005-2010). In Fiscal Year 2011, the State
only funded the Homestead Property Tax Credit at 64%. This impacted the City portion
of property taxes for the average homeowner by an increase of $17.51 or 3.18%. This
provided no additional revenues to the City, as this money would have come to the City
from the State if they appropriated the proper amount of funds. Governor Branstad’s
State budget recommends funding it again at 62%, and now it is up to the State
Legislature.
If the City of Dubuque had just maintained the Fiscal Year 2011 property tax rate
($10.03), the average homeowner would have seen a property tax increase for the City
portion of their property tax bill of over 0.63% after the State required Residential
Rollback.
The recommended property tax rate for Fiscal Year 2012 for the City portion of the
property tax bill of $10.45 per thousand dollars of assessed valuation (a 4.23% rate
increase) is a 4.88% ($28.42) increase in property taxes for the average homeowner if
the State fully funds the Homestead Property Tax Credit. The average commercial
property taxpayer will see a 4.23% ($151.49) increase. The average industrial property
taxpayer will see a 4.23% ($254.01) increase.
A further historical comparison of Dubuque property taxes for the City portion of the tax
bill follows.
CITY OF DUBUQUE
HISTORICAL TAX RATE AND COST COMPARISONS BY CLASS OF PROPERTY
RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL - 1987 - 2012
Residential Commercial Industrial
Net Net
Property Net Property Property
FY Tax Rate % Tax % Tax % Tax %
10.4511
2012 4.23% 610.52 4.88% 3,736.65 4.23% 6,265.44 4.23%
14.5819
1987 522.17 2,571.50 7,290.95
-1.23% 0.69% 1.67% -0.46%
Avg Change Per Yr
If State Homestead Tax Credit was fully Funded
RECAP
(1987 - 2012):
Residential Commercial Industrial
Net Net Net
Property Property Property
FY Tax Rate % Tax % Tax % Tax %
10.4511
2012 -28.33% 610.52 16.92% 3,736.65 45.31% 6,265.44 -14.07%
14.5819
1987 522.17 2,571.50 7,290.95
The $10.45 rate recommended in Fiscal Year 2012 for the City portion of the property
tax bill is a 28.33% decrease from the Fiscal Year 1987 rate of $14.58, for an average
decrease of 1.23% per year.
The property tax payment of the average residential property has increased 8.12%
($88.35) from the Fiscal Year 1987 property tax payment of $522.17, for an average
increase of 0.69% ($3.53) per year.
Since a local option sales tax of 1%, with 50% dedicated to property tax relief, was
passed by referendum in February 1988, the changes in property taxes have been
dramatic over the past 24 years.
With the recommended Fiscal Year 2012 budget, the City of Dubuque is one of two
cities in Iowa with a population over 50,000, of which there are ten cities, to have
reduced the City portion of the property tax rate over the last eight years.
City Property Tax Rate Comparison
Fiscal Year 2002 – Fiscal Year 2012
% Change
City FY 2012 FY 2002 FY12 - FY02
Waterloo $18.31 $17.80 2.87%
Council Bluffs $17.85 $15.72 13.55%
Iowa City $17.76 $14.85 19.60%
Sioux City $17.30 $14.41 20.06%
Des Moines $17.03 $17.05 -0.12%
Davenport $15.53 $14.60 6.37%
Cedar Rapids $15.22 $13.04 16.72%
West Des Moines $12.44 $10.90 14.13%
Ames $10.84 $9.36 15.81%
Dubuque $10.45 $10.76 -2.88%
Average w/o Dubuque $15.81 $14.19 11.39%
Average Higher than 51.28% 31.90% 41.59%
Dubuque
Highest Rank City 75.22% 65.43% 70.32%
Since we do not yet know the Fiscal Year 2012 levies of the other cities, this compares
Dubuque’s proposed Fiscal Year 2012 rate with the actual Fiscal Year 2011 rates of the
other nine large cities in the State of Iowa.
Fiscal Benchmarks
Tax Rates for Iowa's 10 Largest Cities
FY2010 Tax Rate per $1,000 Assessed Value
$20
$18.31
$17.85
$17.76
$17.30
$17.03
$18
$15.53
$15.22
$16
$14
$12.44
$10.85
$12
$10.45
$10
$8
$6
$4
$2
$0
DubuqueAmesWest Des Cedar DavenportDes Sioux CityIowa CityCouncil Waterloo
Moines*RapidsMoines*Bluffs
* Includes the transit tax levy adopted by the Des Moines Regional Transit Authority for comparability.
Dubuque’s Fiscal Year 2012 property rate is $10.45.
Dubuque’s recommended City property tax rate ($10.45) is the lowest in the State, as
compared to the Fiscal Year 2011 rate for the other cities in the State of Iowa with a
population over 50,000. The highest ranked city (Waterloo - $18.31) is 75% higher than
Dubuque’s rate, and the average ($15.81) is 51% higher than Dubuque.
How does the City of Dubuque compare with property tax revenue per capita?
Fiscal Benchmarks
Property Tax Revenue per Capita
Fiscal Year 2012 Comparison for
Iowa’s 10 Largest Cities
Rank City Taxes per Capita
10 West Des Moines $997
9 Iowa City $780
8 Council Bluffs $702
7 Cedar Rapids $659
6 Davenport $587
5 Waterloo $561
4 Des Moines $548
3 Ames $455
2 Sioux City $411
1 Dubuque $359
Average w/o Dubuque $633
Dubuque has the lowest property taxes per capita for the City portion of the property tax
bill in the State for the comparison cities. The highest ranked city (West Des Moines -
$997) is 178% higher than Dubuque’s rate, and the average ($633) is 76% higher than
Dubuque.
The taxable value of residential realty will be 48.53% of assessed value in Fiscal Year
2012, compared to 46.91% in Fiscal Year 2011. This percentage is also applied to farm
dwellings. No adjustments were ordered for commercial, industrial, railroad and utility
property because there were not sufficient increases in values to qualify for reductions.
These properties are assessed on the basis of their market value. Agricultural property
will be limited to 69.02% of the assessed value in Fiscal Year 2012, compared to
66.27% in Fiscal Year 2011. Agricultural property, excluding agricultural dwellings, is
assessed according to its productivity rate.
Overall, taxable property values in the City of Dubuque grew 3.76% in Fiscal Year 2012.
WATER RATE
I am recommending a 5% increase in the water rates. Water Department Manager Bob
Green has contacted other cities in Iowa with a population over 50,000 that use a water
softening process, to determine the recommended water rates for these communities
for Fiscal Year 2012. In spite of the recommended water rate increase, Dubuque would
remain the lowest water rate in the State (as in Fiscal Year 2011) of these seven
communities.
Water Rate Comparison
Monthly Water Rate Comparison for Largest Iowa
Cities with Water Softening for the Average User
Proposed
City
Rate (FY 12)
West Des Moines $29.40
Iowa City $27.40
Cedar Rapids $22.73
Ames $22.73
Council Bluffs $20.74
Des Moines $20.43
Dubuque $18.49
Average w/o Dubuque $23.91
For Fiscal Year 2012, the highest ranked city (West Des Moines - $29.40) is
approximately 59% higher than Dubuque, and the average ($23.91) is approximately
29% higher than Dubuque.
SANITARY SEWER
I am recommending a 15% increase in the Sanitary Sewer Rate. Water Pollution Plant
Manager Jonathan Brown has contacted other cities in Iowa with a population over
50,000 to determine the recommended sewer rates for these communities for Fiscal
Year 2012. Dubuque would be the fifth lowest sewer rate in FY 2012.
Sanitary Sewer Comparison
Sanitary Sewer Rate Comparison
for Average User
City FY12
Iowa City $36.08
Des Moines $29.60
Sioux City $29.34
West Des Moines $27.10
Davenport $25.61
Dubuque $23.77
Waterloo $22.36
Ames $21.99
Cedar Rapids $20.77
Council Bluffs $17.24
Average Without Dubuque $25.57
For Fiscal Year 2012, the highest ranked city (Iowa City - $36.08) is approximately 52%
higher than Dubuque, and the average ($25.57) is approximately 8% higher than
Dubuque.
The City Council has made a major decision on the future processes used in the
treatment of waste at the Water Pollution Control Plant, which will impact rates. The
sewer fees in FY 2012 are recommended to increase 15%; 3% for operating needs and
12% for capital needs. In FY 2008, a facilities planning study determined the best type
of upgrade for the plant to be anaerobic digestion with land application for solids
management. The actual bid for the project was $50,583,067 with engineering services
of $5,100,000 for a total project cost of $55,683,067. There are micro turbines of
$2,420,000 included in FY 2013, which is contingent upon contingency funds being left
to fund the micro turbines. The total contingency for the project is $5,050,733.
Major portions of the Water Pollution Control Plant are reaching the end of their useful
life and need to be reconstructed or replaced. Included in the list of improvements
necessary to maintain the operation of the facility are: 1) Influent Screening; 2) Grit
Removal; 3) Primary Treatment; 4) Biological Treatment; 5) Final Clarification; 6) UV
disinfection in place of chlorine gas; 7) Peak flow management using used tankage; 8)
Emergency backup power; 9) Administration/Laboratory; 10) Refurbishing of all major
valve and piping components; 11) Anaerobic Digestion in place of Incineration for solids
management; 12) Methane capture and cleaning for beneficial reuse. The anticipated
sewer fee increases over the next six years are as follows:
Sanitary Sewer Rates
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Plant Renovation 6% 10% 11% 12% 7% 0%
Operating & Other Capital 5% 5% 5% 5% 3% 3%
Needs
Total Sewer Fee Increase 11% 15% 16% 17% 10% 3%
Fiscal Year 2012 is the fourth fiscal year that the Stormwater User Fee 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 and low-to-moderate
income residents, and a 75% subsidy for the stormwater fee charged to residential
farms. The schedule of the recommended rate increases in Fiscal Year 2012 is as
follows:
Stormwater Fees
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Previously
Projected Rates $5.25 $6.85 $7.00 $7.40 $7.47 $8.05 $8.30
FY12
Recommended
Rates $5.25 $5.60 $6.44 $6.79 $7.81 $7.90 $7.90
% Reduction
from previous
projection 0% 18% 8% 8% (5%) 2% 5%
The stormwater user fee is recommended to increase from $5.25 in FY 2011 to $5.60 in
FY 2012. The stormwater user fee will reach $7.90 in FY 2016.
The City Council approved the purchase of three additional properties for the Kniest
Street Park to be constructed as part of the Upper Bee Branch Creek Restoration
Project at an estimated cost of $190,000. Even with this additional cost, the City has
been able to decrease the previously projected maximum rate of $8.30 to $7.90 due to
receiving a $3.95 million I-Jobs grant and approximately $127,000 in fundraising
revenue. In addition, the City is competing for a $2.4 million Vision Iowa RECAT grant
and a $4.5 million forgivable State Revolving Loan (SRF) from the Iowa Department of
Natural Resources (IDNR), which is designated for projects that address green
infrastructure and other environmentally innovative activities. If the City is successful in
receiving the Iowa RECAT grant, the FY 2012 stormwater user fee may be positively
impacted. If the City is awarded the forgivable SRF Loan from the IDNR, the City would
need to bid the Upper Bee Branch Creek Restoration project in September 2011, prior
to determining the impact on stormwater user fees, which may positively impact the
FY 2013 user fee.
The topography of Dubuque and the limestone bluffs and outcroppings make Dubuque
a beautiful place, but this, and the close proximity to the Mississippi River, provides
unique stormwater management issues that are more expensive to deal with than in
other communities. Efforts to keep the Mississippi River out create problems when
stormwater from rain events is trapped in the community.
The $5.60 monthly fee in Fiscal Year 2012 will make Dubuque the second highest in the
State, behind Des Moines at $8.50.
There is no increase for the refuse collection rate for FY 2012, the rate remains at
$11.09 per month.
In Fiscal Year 2012, the average homeowner will pay $81.12 more for City services,
including property taxes, sanitary sewer, water, refuse and stormwater, than in 2011 –
an average increase of just $24.02 per year since 1995.
Fiscal Benchmarks
Dubuque’s Rankings among
Iowa’s 10 Largest Cities
ISSUE RANK
Property Tax Rate (Lowest) #1 of 10
Water Rate (Lowest) #1 of 7
Sanitary Sewer Rate (5 th Lowest) #5 of 10
Refuse Collection Rate (Lowest) #1 of 10
Stormwater Rate (2 nd Highest) #18 of 19
As you can see, the City of Dubuque is very competitive among the ten cities in the
State of Iowa with a population that exceeds 50,000. I would like to show you how
much money this saves Dubuque taxpayers when compared to the average of the other
nine cities, and to the highest cost in each category (property tax, water, sanitary sewer,
stormwater and refuse collection).
Fiscal Benchmarks
Savings to Average Homeowners
Current Annual If Equal to the Highest
Dubuque CostLarge Iowa City
Property Tax $ 610 $1,070(+$460)
Water Fee $ 223 $ 353 (+$130)
Sanitary Sewer Fee $ 290 $ 434 (+$144)
Stormwater Fee $ 67 $ 102 (+$ 35)
Refuse Fee $ 133 $ 258 (+$125)
Total Annual Cost $1,323 $2,217(+$894)
These savings put almost $17 million back into the local
economy annually; compared to if the City of Dubuque charged
the highest fee of the comparable cities.
The total number of full-time equivalent (FTE) positions increased by 4.33 from Fiscal
year 2011 to Fiscal Year 2012, which includes an increase of 2.66 in full-time
equivalents, increase of 1.48 FTE in the part-time equivalents and increase of 0.19 FTE
in the seasonal equivalents. A full-time equivalent position, or FTE, is based on 2080
hours of work per year (40 hours of work times 52 weeks per year). A majority of this
increase in FTEs is due to the Sworn Officer Plan approved by the City Council in Fiscal
Year 2008, which proposed the addition of 15 sworn police officers over a five-year
period with the first five officers added in Fiscal Year 2008, four officers added in Fiscal
Year 2009, three officers in Fiscal Year 2010, two officers added in FY 2011 and the
final additional officer recommended to be added in FY 2012. A part-time custodian is
th
recommended to be added to clean the newly renovated 18 Street Building and the
Landfill office. A Public Safety Dispatcher is recommended to be upgraded to a Lead
Public Safety Dispatcher. A Library Assistant is recommended to be upgraded to a
Library Aide. The Lead Paint personnel are recommended to be increased to a full-time
due to the City receiving another Lead Paint Grant. A Housing Part-time Circles Coach
for the Bridges Initiative is recommended to be added. The Public Works Seasonal
Clerk and Part-time Custodian are recommended to increase hours. An Assistant
Gardener position in the Park Division is recommended to maintain wetlands and native
prairie areas, which include the Bee Branch, industrial parks, and detention basins. The
Multicultural Family Center is recommended to add a part-time Recreation Field Site
Supervisor.
The total number of full-time only positions recommended in the Fiscal Year 2011
budget was 546.59. This number is recommended to increase in Fiscal Year 2012 by
2.66 FTE due to the addition of an Assistant Gardener (+1.0 FTE); Police Officer (+.91
FTE), which includes one new police officer hired in April 2012, and a full-year budgeted
for the officers hired in FY 2011; Lead Paint Grant beginning January 2011 with an
increase of FTE of +.75; replacement of a full-time Library Assistant with a Full-Time
Library Aide; and replacement of a full-time Public Safety Dispatcher with a full-time
Lead Public Safety Dispatcher. In Fiscal Year 1981, the City of Dubuque had 588.25
full-time employees. Despite the addition of many new services, like recycling,
inspections, etc., the City today has 549.25 full-time employees (assuming this budget
recommendation is approved).
The City continues to identify alternative revenue sources. The City currently leases
approximately 70 acres of industrial riverfront property to private industry. Based on 50-
year leases mostly executed in the 1960’s and 1970’s, the City receives about $530,000
per year in land lease revenues for property that should be generating millions of dollars
in lease revenues. The City is currently approaching those firms about their lease
renewals.
The City faces some significant financial challenges over the next several years. I
commit to do my best to operate the City efficiently and to identify alternative revenue
sources to minimize the property tax bill. There were almost $23.5 million in
Departmental requests that could not be recommended in the 5-Year Capital
Improvement Program Budget.
Mayor Buol and the City Council met in August 2010 to establish the Missions, Visions,
Goals and Priorities for the community. These are the foundation of the City’s work plan
and this budget recommendation:
Our Vision for the Community
Dubuque is a city of…
History
Beauty
Opportunities
Excitement
Dubuque Vision 2025
The City of Dubuque is a progressive, sustainable city with a strong diversified
economy and expanding global connections;
the Dubuque community is an inclusive community celebrating culture and
heritage and has actively preserved our Masterpiece on the Mississippi;
Dubuque citizens experience healthy living and active retirement through quality,
livable neighborhoods and an abundance of fun things to do and they are
engaged in the community, achieving goals through partnerships; and
Dubuque City government is financially sound and providing services with
citizens getting value for their tax dollars.
City of Dubuque Mission Statement
The City’s mission is to deliver excellent municipal services that support urban living,
and contribute to a sustainable city. The City plans for the community’s future, and
facilitates access to critical human services. The result is a financially sound city
government and citizens getting services and value for their tax dollar.
City Council Goals 2016:
Diverse, strong Dubuque economy
Sustainable city – economic prosperity, social/cultural vibrancy, environmental
integrity
Planned and managed growth
Partnering for a better Dubuque
Improved connectivity – transportation and telecommunications
City Council Goals – Policy Agenda 2010-2012:
Top Priority
Develop a master plan for the South Port and Chaplain Schmitt Island
Develop a human relations strategy
Continue work on the Sustainability Plan
Provide direction for the IBM/Smarter City Partnership
Identify ways to develop sustainable city facilities
Continue work with the Safe Community Task Force
Pursue Southwest Arterial funding
High Priority
FEMA flood plain maps
Every Child | Every Promise
Partnering with Community Foundation of Greater Dubuque
Collaboration between the Leisure Services Department and the school district
Expand air service
Project HOPE (Helping Our People Excel)
Management Agenda 2010-2012
Top Priority
Workforce housing
DubuqueWorks programs
Washington Neighborhood
Intermodal facility
Street improvement program
Bee Branch Creek reconstruction
High Priority
West End fire station
Riverfront leases
Destination for Opportunity
Dubuque 2.0
Passenger rail
I want to thank Budget Director Jennifer Larson, Assistant City Manager Cindy
Steinhauser, Assistant Budget Director Jason Hartman, Office Manager Juanita Hilkin,
Secretary Liz Willems, Secretary Jessica Kurt, Secretary Ella Lahey and Management
Intern Phyllis Russell, for all their hard work and dedication in preparation of this budget
recommendation.
I look forward to City Council questions and input as you review this budget
recommendation and then this will be implemented according to your final decisions and
direction.
________________________________
Michael C. Van Milligen
MCVM:jh