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Budget Book FY 2007 Citizen Guide ,. CITY OF DUBUQUE CITIZENS GUIDE TO THE RECOMMENDED FISCAL YEAR 2007 BUDGET FISCAL YEAR BEGINNING JULY 1, 2006 AND ENDING JUNE 30, 2007 CITY COUNCIL Roy D. Boul, Mayor Karla A. Braig Patricia A. Cline . Joyce E. Connors Richard W. Jones Kevin J. Lynch Ann E. Michalski ADMINISTRATIVE STAFF Michael C. Van Milligen City Manager Cynthia M. Steinhauser Assistant City Manager Dawn L. Lang Budget Director Kenneth J. TeKippe Finance Director Juanita A. Hilkin Office Manager Kevin 5. Firnstahl Secretary . -3- . . . TABLE OF CONTENTS Citizens Guide to the Recommended Fiscal Year 2007 Budget Page FY 2007 City Council Budget Hearing Schedule ...........................................................11 Budget Cycle ... ...... .................. ............ ...... ....... ....... ....... ............... ................................ 13 The Dubuque Community - Miscellaneous Statistics.................................................... 15 Dubuque 2020 Vision Statement, City Council Five-Year Goals, City Council Policy Agenda 2005-2007, and Management Agenda for 2005-2007 ............................................................................. 17 Budget Message FY 2007 Budget Transmittal Memo ...............................................................................21 City Manager's Guiding Principles of the Management Philosophy............................... 35 Dubuque Awards & Recognition .......... ....................... .................... ............................... 36 City of Dubuque Organizational Chart .......................................... ................................. 39 City of Dubuque Boards and Commissions ...................................................................40 Partnerships and Contracted Services .......................... ............... ................................. 41 Summary of Recommended Decision Packages...........................................................43 Personnel Changes in Recommended FY 2007 Budget ...............................................55 Budget Overviews FY 2007 Recommended Budget Fact Sheet.................................................................59 Assumptions Used in FY 2007 Budget Preparation.......................................................61 Costs of Municipal Services. ............................................................................... ...... .....64 Proposed Rates and Comparisons.................................... ............................. ............ ... 65 Property Tax Rate Split - Pie Chart...............................................................................67 FY 2007 Recommended Tax Rate and Tax Levy..........................................................69 Impact of Local Options Sales Tax and Gaming Revenues on Tax Rate ...................... 71 Valuation Growth............................................................................................ ...... ..... ....73 Impact of Recommended Budget on Classes of Property............................................. 74 Street Construction Related Improvements - Overview................................................. 77 Personnel Complement Summary - FY 1981-FY 2007.................................................78 Personnel Complement Summary by Department - FY 1981-FY 2007 ........................79 -7- TABLE OF CONTENTS Citizens Guide to the Recommended Fiscal Year 2007 Budget e Financial Summaries Page Revenue Summaries Distribution of Property Tax - City Share - Pie Chart.................................................... 85 FY 2007 Recommended Net Operating Budget by Department (Levied Funds)...........87 Distribution of City Portion of Property Tax Payment - Residential Property Example...... 88 Where the Money Comes From - Pie Chart.................................................................. 89 FY 2007 Recommended Budget by Source of Income.................................................. 91 Expenditure Summaries How the Money is Spent- Pie Chart............................................................................. 95 FY 2007 Recommended Budget by Department and State Program ............................ 97 Grand Total Expenditure Summary ...............................................................................99 Operating Expenditures by Fund _ Capital Expenditures by Fund Operating Budget by Major Category of Expenditure by Department _ Operating Budget by Major Category of Expenditure by Fund and Department e' Fund Balance, Income, and Expense Summary - FY 2007 ........................................107 Distribution of Community Development Funds FY 2007 Annual Action Plan........................................................................................ 1 11 Debt Summaries General Obligation Debt and Debt Capacity Summary of Bonded Indebtedness - Fiscal Year 2006-2007......................................123 Statutory Debt Capacity............................................................................................... 125 Debt Margin Comparison for Nine Largest Iowa Cities................................................ 126 Capital Budget City Manager's Fiscal Year 2007-2011 Capital Improvement Program Budget Message........................................................................................... 129 ~i~~~~~~~~~~;7~~~~111.~:.~~.~~~~.nt. ~.r~g.r~~. ~.u~~~~.~......................................... 147 e I -8- . . . TABLE OF CONTENTS Citizens Guide to the Recommended Fiscal Year 2007 Budget Appendices Page Overview of Budgeting................................................................................................. 167 - Budget Accounting Basis - Fund Accounting Basis Key Terms for Understanding Dubuque's Budget System........................................... 175 FY 2007 Policy Guidelines..................... .......... ............... ......... ......................... ...........183 -9- CITY COUNCIL'S FISCAL YEAR 2007 BUDGET HEARING SCHEDULE e DATE DAY TIME PLACE TOPIC January 17 Tuesday 6:30 p.m. Library Budget document presentation to City Council at Council Meeting February 7 Tuesday 6:30 p.m. Library Human Rights Finance Legal City Manager City Council City Clerk Adjournment February 9 Thursday 6:30 p.m. Library Emergency Communications Ctr Emergency Management Fire Police Building Adjournment February 13 Monday 6:30 p.m. Library Water Water Pollution Control e Public Works Engineering Adjournment February 14 Tuesday 6:30 p.m. Library Civic Center Division Recreation Division Park Division Information Services Cable TV Adjournment February 21 Tuesday 6:30 p.m. Library Economic Development Parking Division Transit Division Planning Services Housing/Community Development Adjournment February 23 Thursday 6:30 p.m. Library Airport Library Health Services Purchase of Services Adjournment March 2 Thursday 6:30 p.m. Library Public Hearing to Adopt FY 2007 Budget e -11- BUDGET CYCLE The budget cycle is a sequence of events covering the life of a budget from beginning to end; from the City Manager's review of prior year accomplishments and future initiatives, to the City Council acceptance of the independent audit. The budget cycle is approximately twenty-six months long. The critical dates are spelled out in State law: March 15'h is when the budget for the following fiscal year must be adopted by the City Council; and July 15' as the beginning of the fiscal year. Throughout the entire budget cycle, public input is encouraged to insure the adopted budget is citizen-based. The budget cycle can be summarized as follows: . . . City Council formulates negotiation strategy for collective bargaining. City Manager, along with Department Managers, review fiscal year accomplishments and identify future initiatives City Council consideration during goal setting. City Council holds 2-day goal setting to development Vision and Mission statements, identify 5 year goals and establish Policy agenda including Top Priorities for upcoming fiscal year and Management Agenda/special projects. City departments prepare Capital Improvement project information and budget requests for review by City Manager. City departments prepare operating budget requests for review by City Manager. City Manager presents 5-year projection and draft Policy guidelines to City Council for City Council approval. City Manager holds Public Input meeting to review issues and priorities for the CIP budget and the operating budget. City Manager and Budget Director analyze, review and balance CIP and Operating budget requests and prepare final budget recommendation. City Council holds public meetings to review recommended budget by department. Meetings are held in the evening and are available for live viewing on City Channel 8. City Council holds final public hearing on the recommended. The meeting is held in the evening and is available for live viewing on City Channel 8. City Council adopts budget and city staff certifies budget by March 15 in compliance with State law. Budget Director reviews budgeted revenues and expenses and recommend adjustments to more accurately reflect the anticipated revenues and expenses for the fiscal year ending June 30. City Council reviews and approves an amended fiscal year budget and city staff certifies the budget amendments by May 31 in compliance with State law. -13- THE DUBUQUE COMMUNITY - MISCELLANEOUS STATISTICS The city of Dubuque was founded by Julien Dubuque in 1785 and is the oldest city in Iowa. The City of Dubuque has a stable and diversified manufacturing base and is the major tri-state retail center. Employment growth was strong throughout the year and Dubuque ended the 2005 fiscal year with an unemployment rate of approximately 4.8 percent. . . . Tom.h.... Cr.~do" 35.-....' " " a."on .lMlodl.rol}A,,,ill,Anligo \lllausau , '_ Itl,~'omin.. ""; m'EtJO .K",hoo, .006010. Sblftoon ", ll"'ind M.ld1filld, ~\lMS a.y kevle"'iiidWi:g 10~' Port 4Ii ~i,Qreen~ j "0 _ W I S C 0 SIN -- K_~n.. W.blSh.',~I.d<R'WIFr. -':~;" ROI:hesl~r'" WIl(f18 12 Woul i. i~erW1 ~ I~ II.. On' OsttosiP '(udlnlto ,... ~2, FOCll 011 L!lC<lI . Sheboy~ C.tedoni. \.Crosse W.uPU" : ~Jl .. .: ..............................".Vifgqui' we Bend N.~~ood ~ .ClIlOO ", 41 'P 53", ," 2~ El.iClMe ., dwcodF.ils wUlmo .SIP.I.. J'''ar1k9lo , -~" M INN E S .., UMM ESltiiNf11l- Fo'eslCitJ Clu,L... AlgoA' ~onSh G os') CI'non. t1Dcd;Jell "'obsttrCif/" ""oil A~ ". ,l,nlu:ny lOW" D.lMoneI I~:. I: PI.lt; -v lid, .~ .S;goum.y O~lo.u aOOl.WTM'8 .~I:::n;:: ,slO". ;omloo Osolol. Albi. ~ . . "tAl" L..n .E"..mli~ld . . .Ctnt...illl" 2 ~lr9on .. 'Ui>,ii"..ll1, .~ "c'.. ....~..,~...".. ,MI""mb "'.~. .,...illo 13& 0 ,0 .~" ''"1 .PriMoI.n IIltmphlJ ~'il'k..l"i< ILL I . _' .Ininv Ki......II. SCHOOL ENROLLMENT 1980-1981 11,701 1990 -1991 9,612 2000 - 2001 9,696 2005 - 2006 10,547 Expansion Magazine ranked Dubuque Community Schools #7 out of 2,200 school districts nationwide. Form of Government: Council - City Manager Fiscal Year: July 1 - June 30 Land Area: 29.46 square miles Riverfront shoreline: 8.8 miles Census: 57,686 Population Four lane Highway Connections: Hwy 61 to Davenport Hwy 151 to Madison Hwy 20 to Ames Hwy 151 to Cedar Rapids (1-380) Hwy 218to Minneapolis Hwy 20 to Chicago Institutions of Higher learning: 6 Median Age of Population: 36.5 Household Average Income: $39,582 Average Winter Temperature: 19.60 Average Summer Temperature: 700 Average Annual Rainfall: 32.9" Average Annual Snowfall: 43 " UTILITIES CUSTOMERS Water Wastewater Storm Sewer Refuse 22,086 21,996 22,299 19,645 RECOGNITION A study by Economy.com showed Dubuque's personal income rate for 2004 grew at its fastest rate in nearly a decade, up 35% from 2003. A 2004 Study by the Milken Institute showed a one-year wage growth in Dubuque outpaced 75% of all U.S. smaller metros. The Metro Business Retention Index for November 2001 ranked the Greater Dubuque area as 20d in the nation for business retention. Forbes Magazine ranked Dubuque 13th out of 168 cities for the cost of doing business. Dubuque ranked 2nd in the State among major cities for job growth between July 2002 - July 2005. From July 2002 - Juiy 2005 Dubuque County accounted for 9.6% of new private sector jobs created in the entire state despite only holding 3% of Iowa's population. The Milken Institute ranked Dubuque 34th out of 118 cities in 2004 in the Best Performing Cities Index among small U.S. metropolitan areas and ranked the Greater Dubuque area as 1" in High Tech Output Growth from 1998-2003 In May 2004 Expansion Magazine surveyed 331 metropolitan areas and ranked Dubuque: #7 for Quality of Life #11 for Peace of Mind - Safety #1 for Housing Affordability . -15- . . . BUDGET CYCLE The budget cycle is a sequence of events covering the life of a budget from beginning to end; from the City Manager's review of prior year accomplishments and future initiatives, to the City Council acceptance of the independent audit. The budget cycle is approximately twenty-six months long. The critical dates are spelled out in State law: March 15th is when the budget for the following fiscal year must be adopted by the City Council; and July 1 st as the beginning of the fiscal year. Throughout the entire budget cycle, public input is encouraged to insure the adopted budget is citizen-based. The budget cycle can be summarized as follows: rH ---- SPRING AlIGUST .~.-~...;~ SEiP"fEiMBER ~(iIJm~ NglY6J~Ii,~R N0VEM8liR -. .- ~-.~ -I ~.:.. '" r. lD&eEi~~IiR ~ 4,~!i~t-RY FEiBRtJARY MARCH MAY ] City Council formulates negotiation strategy for collective bargaining. City Manager, along with Department Managers, review fiscal year accomplishments and identify future initiatives City Council consideration during goal setting. City Council holds 2-day goal setting to development Vision and Mission statements, identify 5 year goals and establish Policy agenda including Top Priorities for upcoming fiscal year and Management Agenda/special projects. City departments prepare Capital Improvement project information and budget requests for review by City Manager. City departments prepare operating budget requests for review by City Manager. City Manager presents 5-year projection and draft Policy guidelines to City Council for City Council approval. City Manager holds Public Input meeting to review issues and priorities for the CIP budget and the operating budget. City Manager and Budget Director analyze, review and balance CIP and Operating budget requests and prepare final budget recommendation. City Council holds public meetings to review recommended budget by department. Meetings are held in the evening and are available for live viewing on City Channel 8. City Council holds final public hearing on the recommended. The meeting is held in the evening and is available for live viewing on City Channel 8. City Council adopts budget and city staff certifies budget by March 15 in compliance with State law. Budget Director reviews budgeted revenues and expenses and recommend adjustments to more accurately reflect the anticipated revenues and expenses for the fiscal year ending June 30. City Council reviews and approves an amended fiscal year budget and city staff certifies the budget amendments by May 31 in compliance with State law. -13- THE DUBUQUE COMMUNITY - MISCELLANEOUS STATISTICS . The city of Dubuque was founded by Julien Dubuque in 1785 and is the oldest city in Iowa. The City of Dubuque has a stable and diversified manufacturing base and is the major tri-state retail center. Employment growth was strong throughout the year and Dubuque ended the 2005 fiscal year with an unemployment rate of approximately 4.8 percent. . 8 ..~..~_._;,.. C".don T""'.h.... .. " . "o",tl ""b" ......,o,~. , W :l'J .,..... ., ,., ;""-"01'"'''' ......; :' (I _..r.11s ..Ulm. ....'Ud'.g'. , ~'M Estr>tMn.-'" Alg... ""~Sh G ISO J,hCI.ri... rt_, ..bslo,Ci Irroll l4'. kterrt lOW ~ -0 Del Mme. loWaC I . lid. I~:. I: Pt!J.'".. .Sigou"'"J O..loon <$to., Oll...nwa hlount'.,. :.""011 a /1.....01; rrt,o,y'. 91.."'lioI6 . , C,o,....II. .l. . . :.~U,,'0"~;If. .....~-"\ .:"fQ~ hl.""mb ....rh 'P'i"~~"n ......,p.,t e'i,~~~:' . III I . .th..... ,Kiil<<v,II. , I Willi"", 'f"'111 0'''''. SCHOOL ENROllMENT 1980-1981 11,701 1990 -1991 9,612 2000 - 2001 9,696 2005 - 2006 10,547 Expansion Magazine ranked Dubuque Community Schools #7 out of 2,200 school districts nationwide. Form of Government: Council - City Manager Fiscal Year: July 1 - June 30 land Area: 29.46 square miles Riverfront shoreline: 8.8 miles Census: 57,686 Population Four lane Highway Connections: Hwy 61 to Davenport Hwy 151 to Madison Hwy 20 to Ames Hwy 151 to Cedar Rapids (1-380) Hwy 218 to Minneapolis Hwy 20 to Chicago Institutions of Higher learning: 6 Median Age of Population: 36.5 Household Average Income: $39,582 Average Winter Temperature: 19.60 Average Summer Temperature: 700 Average Annual Rainfall: 32.9" Average Annual Snowfall: 43 " UTILITIES CUSTOMERS Water Wastewater Storm Sewer Refuse 22,086 21,996 22,299 19,645 RECOGNITION A study by Economy.com showed Dubuque's personal income rate for 2004 grew at its fastest rate in nearly a decade, up 35% from 2003. A 2004 Study by the Milken Institute showed a one-year wage growth in Dubuque outpaced 75% of all U.S. smaller metros. The Metro Business Retention Index for November 2001 ranked the Greater Dubuque area as 2nd in the nation for business retention. Forbes Magazine ranked Dubuque 13th out of 168 cities for the cost of doing business. Dubuque ranked 2"" in the State among major cities for job growth between July 2002 - July 2005. From July 2002 - July 2005 Dubuque County accounted for 9.6% of new private sector jobs created in the entire state despite only holding 3% of Iowa's population. The Mllken Institute ranked Dubuque 34th out of 118 cities in 2004 in the Best Performing Cities Index among small U.S. metropolitan areas and ranked the Greater Dubuque area as 1" in High Tech Output Growth from 1998-2003 In May 2004 Expansion Magazine surveyed 331 metropolitan areas and ranked Dubuque: #7 for Quality of Life #11 for Peace of Mind - Safety #1 for Housing Affordability . -15- e Dubuque 2020 vision statement Dubuque is a city of history, beauty, opportunities and excitement: Masterpiece on the Mississippi. "The City of Dubuque is a growing city with a strong, balanced economy and connections to the world. The Dubuque community takes pride in our history and heritage and has actively preserved our picturesque river and community. Dubuque citizens have choices of quality livable neighborhoods and fun things to do; and are engaged in the community. Dubuque city government is financially sound and providing services with citizens getting value for their tax dollars." City Council Five-year goals: . Improved Connectivity: Transportation and Communications . Diverse, Strong Dubuque Economy . Planned and Managed Growth . Partnering for a Better Dubuque . Riverfront Development City Council Policy Agenda 2005-2007 e Top Priority . Southwest Arterial - Funding for the arterial is once again the NO.1 transportation priority for the City of Dubuque, Dubuque County, DMA TS, the Dubuque Area Chamber of Commerce and Greater Dubuque Development Corp. . Intermodel Transit Facility Study - This initiative involves a feasibility study about the creation of an intermodal facility, including parking, for the Port of Dubuque. . Downtown Master Plan Implementation . Bee Branch Stormwater Improvement Project . Erosion Control Policy High Priority . Municipal Communication Utility Referendum . Airport Master Plan Implementation . Police Department Staffing and Deployment . Neighborhood Crime Reduction Strategy . library Renovation e -17- Management Agenda for 2005-2007 These 18 issues represent short-term projects for the City Manager and City of Dubuque staff. Included in the Management Agenda are items that are considered a Major Project that involve significant city resources and may span more than one year for completion: Management Agenda · Federal Building Direction on City Purchases · Water Pollution Control Plant Upgrade Plan · Infrastructure Upgrade Strategy and Action · Annexation Study Update · Zoning and Subdivision Ordinance Update · Petroleum Plume Remediation · Regional Community Safety Training Center · City Leases: Upgrade · After School Program Development Major Projects · Casket Company Completion and Tot Lot · Shot Tower Renovation Plan and Project . Storm Sewer Projects · Gateway Landscaping Project · A.Y. McDonald Park Project · Pyatigorsk Park Project · Bergfeld Recreation Area · Comiskey Park Improvement Project . Pet Park -18- e CITY MANAGER'S · BUDGET MESSAGE . -19- tit e . i5~~~E ~~~ MEMORANDUM January 9, 2006 . TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen. City Manager SUBJECT: Fiscal Year 2007 Budget Transmittal Message The Fiscal Year 2007 budget process includes new leaders and one leader in a new role. including: Mayor Roy D. Buol At-Large Council Member Ric W. Jones 1 st Ward Council Member Kevin J. Lynch 2nd Ward Council Member Karla A. Braig I welcome them as they continue public service in their new roles. City leadership also involves veteran Council Members, including: At-Large Council Member Ann E. Michalski 3'd Ward Council Member Joyce E. Connors 4th Ward Council Member Patricia A. Cline The City begins this process with four City employees having been called to active military duty: Steven L. Olson Thomas P. Reed Brant E. Schueller David B. Welsh Over the last four years the following City employees have been on active duty and have returned safely: Debra R. Bisping Frederick A. Brimeyer Jamie S. Karshbaum Gregory A. Merfeld Benji M. Young We thank them for service to our country to protect our hard-earned freedoms. -21- The Honorable Mayor and City Council Members January 9, 2006 Page 2 The Fiscal Year 2007 budget is about growth. The things the City needs to do if we want to continue growing, which of course it must do to provide economic opportunity for Dubuque families, and the things that need to be done to preserve and enhance the quality of life for the citizens of today, based on improvements that need to be done in reaction to growth that has happened in the past. The best examples of future growth initiatives include budgeting for the extension of utilities in annexation areas and the construction of IA 32/Southwest Arterial. The best examples of projects that need to be done in reaction to historical growth are the expansion of the park system and the Bee Branch Creek Restoration Project. To provide greater opportunity for economic expansion, while maintaining and enhancing the quality of life, a community must be willing to invest resources. Those resources include human capital, like time and talent, and financial capital. These investments involve emergency services; preventive services; safe drinking water; treated sewage; properly disposed of waste; engineered, maintained and plowed streets; planned growth; safe housing; respect for the rights of people; safe construction practices; sound financial practices; proper record keeping; respect for the law; state-of- the-art communication systems; appropriate use of technology; communicating with and providing information to the public; modern and accessible parks and recreation opportunities; entertainment; education through access to books and the internet; economic expansion and job creation; transportation; and sound management practices emphasizing accountability, problem solving, employee and citizen input and forming partnerships. These are all the role of the City of Dubuque and others. To achieve the expectations of Dubuque citizens will not be easy and will continue to require a concerted effort by all those involved. This Fiscal Year 2007 budget document was built on the City Council Vision, Goals, Priorities and Management Agenda established in September 2005. Of course it is understood each year, as that annual strategic planning session provides direction for budget preparation, that this recommendation is an attempt to interpret the results of that session through the use of limited resources with competing priorities. That could be made all the more challenging through this budget process in that three of the elected officials reviewing the recommendation were not on the City Council when the 2005 Strategic Planning Session was held. The established City Council Vision, Goals, Priorities and Management Agenda are as follows: Dubuque 2020 Vision Statement Dubuque is a city of history, beauty, opportunities and excitement: Masterpiece on the Mississippi. -22- . . . The Honorable Mayor and City Council Members January 9, 2006 Page 3 The vision statement was approved to include: "The City of Dubuque is a growing city with a strong, balanced economy and connections to the world. The Dubuque community takes pride in our history and heritage and has actively preserved our picturesque river and community. Dubuque citizens have choices of quality livable neighborhoods and fun things to do; and are engaged in the community. Dubuque city government is financially sound and providing services with citizens getting value for their tax dollars." Five-year goals for the community: . Improved Connectivity: Transportation and Communications . Diverse, Strong Dubuque Economy . Planned and Managed Growth . Partnering for a Better Dubuque . Riverfront Development The City Council adopted a Policy Agenda 2005-2007 and developed 10 priority issues. These issues were divided into top and high priority: Top Priority . Southwest Arterial - Funding for the arterial is once again the NO.1 transportation priority for the City of Dubuque. . Intermodal Transit Facility in the Port of Dubuque . Downtown Master Plan Implementation . Bee Branch Stormwater Improvement Project . Erosion Control Policy High Priority . Municipal Communication Utility Referendum . Airport Master Plan Implementation . Police Department Staffing and Deployment . Neighborhood Crime Reduction Strategy . Library Renovation Also established was the Management Agenda for 2005-2007. These 18 issues represent short-term projects for the City Manager and City of Dubuque staff. Included in the Management Agenda are items that are considered Major Projects that involve significant city resources and may span more than one year for completion: Management Agenda . Federal Building . Water Pollution Control Plant Upgrade Plan . Infrastructure Upgrade Strategy and Action . Annexation Study Update . Zoning and Subdivision Ordinance Update -23- The Honorable Mayor and City Council Members January 9, 2006 Page 4 . Petroleum Plume Remediation · Regional Community Safety Training Center . City Leases: Upgrade . After School Program Development . Major Projects · Casket Company Completion and Tot Lot . Shot Tower Renovation Plan and Project . Storm Sewer Projects . Gateway Landscaping Project . A.Y. McDonald Park Project . Pyatigorsk Park Project . Bergfeld Recreation Area . Comiskey Park Improvement Project . Pet Park The City has a solid foundation to build upon as recognition in the recent past can attest: · The City of Dubuque was selected as the 2005 Employer of the Year by American Legion Post #6. · Phoenix Award for Port of Dubuque Brownfield Redevelopment from the United States Environmental Protection Agency Region 7. · Best Development Award for the America's River project from 1,000 Friends of Iowa. . 10 Great Places to Discover Midwest Charm, USA Today. · All-Star Community Award for America's River project from the Iowa League of Cities. . Best New Development Award for America's River project from Main Street Iowa. . Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officer's Association. . Superior Levee Maintenance Award from the U.S. Corps of Engineers. . Excellence in Communication for Interest-Based Bargaining Committee from the Dubuque Area Labor-Management Council. . Family Self Sufficiency Program Success from U.S. Department of Housing and Urban Development Region 7. . Housing Choice Voucher Home Ownership Program Success from U.S. Department of Housing and Urban Development Region 7. . Dubuque Carnegie-Stout Public Library Accreditation by the State Library of Iowa. . Police Department accreditation by the Commission on Law Enforcement Accreditation. . Tree City USA by the National Arbor Day Foundation. -24- . e . The Honorable Mayor and City Council Members January 9, 2006 Page 5 . The Greater Dubuque Area was ranked #1 by the Milken Institute for High Tech Output Growth, 1998-2003. . The Metro Business Retention Index for November 2001 ranked the Greater Dubuque area 2nd in the nation for business retention. . Forbes magazine ranked Dubuque 13th of 168 cities for the Cost of Doing Business. . The May 2004 issue of Expansion Management magazine selected Dubuque as one of just 50 Five-Star Communities in the country. Identifying schools and home afford ability as the two most important quality of life issues, they selected Dubuque as #7 for quality of schools and #1 in housing affordability. They also ranked Dubuque #11 in peace of mind for its level of safety. . The Milken Institute's 2004 Best Performing Cities Index ranked Dubuque 34th out of 118 small U.S. metropolitan areas. . American City and County magazine selected Dubuque as one of only six Crown communities in 2003. . A December 2002 Des Moines Register editorial, entitled, "Dubuque shows how," began "Few Iowa cities were hit harder in the '80s. Few have a better outlook now." The editorial ended saying, "The Dubuque story might offer lessons for every Iowa city." . In 2004, Country Music Television named Dubuque County as the #4 Top Destination to Visit Worldwide. . In May 2003, USA Weekend magazine selected the Upper Mississippi River Valley as the Third Most Beautiful Place in America. . Dubuque received the Merit Award for Economic Development for the America's River project in 2004 from the International Downtown Association. . The National Trust for Historic Preservation named Dubuque to its 2005 list of America's Dozen Distinctive Destinations, an annual list of unique and lovingly preserved communities in the United States. . A 2004 study by the Milken Institute showed one-year wage growth in Dubuque outpaced 75% of all U.S. smaller metros. . Dubuque was designated a Preserve America Community in November 2004. . Inc. magazine ranked Dubuque #62 out of 274 metros measured on its list of "Best Cities to Do Business in America" in its May 2005 issue. Dubuque climbed 177 spots from last year! The Fiscal Year 2007 budget recommendation you will be reviewing over the next six weeks has been prepared with the intent of minimizing the cost to the taxpayer. A decrease in the revenue projections from the Dubuque Racing Association of $14,089,543 over the next five years, and an increase in sales tax that did not meet aggressive projections have meant less operational and capital resources in Fiscal Year 2007 than was anticipated when the projections were done last year. This has meant that the property tax impact on the average homeowner was not able to be decreased as much as hoped for and additional borrowing was required in the stormwater utility, contributing to a recommended increase in that fee. -25- The Honorable Mayor and City Council Members January 9, 2006 Page 6 The property tax is recommended to have a decrease in property taxes for the average homeowner of $18.83 (3.73%). This is a decrease from the cost to the average homeowner in Fiscal Year 2006 of $504.62, down to $485.79. If this is adopted by the City Council through the budget process, it will be the sixth decrease of the property tax impact on the average homeowner in the last twelve years. However, it will not meet the Budget Policy Guideline established by the City Council in December 2005 of a 5.44% decrease. The City of Dubuque property tax rate for the City portion of the property tax bill reached a high of $14.58 per thousand dollars of assessed valuation in Fiscal Year 1987. The Dubuque Greyhound Park and Casino, the Local Option Sales Tax and operating efficiencies brought the property tax rate down to $12.61 by Fiscal Year 1994. The recommendation for the Fiscal Year 2007 property tax rate is $9.9803 per thousand, a slight increase from the Fiscal Year 2006 property tax rate of $9.6991. This will mean that the Fiscal Year 1987 property tax rate of $14.58 is 46.1 % higher than the Fiscal Year 2007 recommended property tax rate of $9.9803. FY 06 Tax Rate Comparison for Nine Largest Iowa Cities 9 Waterloo $19.16 8 Council Bluffs $18.39 7 Sioux City $17.97 6 Iowa City $17.86 5 Des Moines $16.52 4 Davenport $15.24 3 Cedar Rapids $13.99 2 Ames $10.17 1 Dubuque $9.98 (FY 07) Average without Dubuque $16.16 Dubuque is the LOWEST in the state for property tax rate. The highest ranked city (Waterloo) is 92% higher than Dubuque's rate, and the average is 62% higher than Dubuque. The reduction of the estimate of available resources from the Dubuque Racing Association has had the most impact on the Drainage Basin Master Plan funding, with a reduction of $3,621 ,000 in DRA resources available over the next five years. The City of Dubuque gets two major sources of revenue from gaming. The annual distribution from the Dubuque Racing Association is dedicated 100% to the Capital Improvement Program. The taxes and lease payments from the Dubuque Racing Association and Peninsula Gaming are split between the Capital Improvement Program budget and the Operating Budget for property tax relief. In Fiscal Year 2006 this split was 62.72% to the Operating Budget and 37.28% to the CIP. In Fiscal Year 2007 the -26- . The Honorable Mayor and City Council Members January 9, 2006 Page 7 recommended division is 70% to the Operating Budget and 30% to the CIP. This exceeds the operating guideline adopted in December 2005, which was 62.72% to the Operating Budget. The implementation of the Bee Branch Creek Restoration Project is the key to saving over 1,100 homes from flooding during severe rainstorms that seem to come all too frequently. Quickening the pace on the part of the project from the 16th Street Detention Basin through the damming affect of the railroad tracks will allow for a quicker redevelopment of the former Dubuque Pack site and more timely flood relief for North End residents. This budget recommendation includes an accelerated rate of increase of the Stormwater Fee and now the fee caps out at $5.00 in Fiscal Year 2012, instead of $3.50 in Fiscal Year 2013. FY 13 FY07 FY08 FY09 FY10 FY11 FY12 and Beyond Previously approved $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 Stormwater Fee Fiscal Year 2007 $2.25 $3.25 $4.00 $4.25 $4.25 $5.00 $5.00 Recommended Fee . . FY 06 Stormwater Rate Comparison for Iowa Cities with Stormwater utilities 14 13 12 11 10 9 9 8 8 7 6 6 5 4 3 2 2 1 Des Moines Ackley Cedar Rapids Carroll Garner Davenport Dewitt Ames Dubuque Marshalltown Burlington Iowa City Boone Sioux City Clear Lake Bettendorf Marengo Mason City $6.12 $3.08 $3.04 $3.00 $2.63 $2.50 $2.50 $2.25 $2.25 (FY 07) $2.16 $2.00 $2.00 $1.95 $1.84 $1.55 $1.50 $1.50 $1.00 Average without Dubuque $2.39 -27- The Honorable Mayor and City Council Members January 9, 2006 Page 8 The highest ranked city (Des Moines) is 172% higher than Dubuque's rate, and the average is 6% higher than Dubuque. The water fees are recommended to increase by 4%. From Fiscal Year 1983 through Fiscal Year 2007, this is an average of 1.9% annual increase, with six of those years showing no increase. FY 06 Water Rate Comparison for Largest Iowa Cities with Water Softening 6 Iowa City $28.80 5 Ames $18.42 4 Council Bluffs $17.44 3 Des Moines $16.22 2 Dubuque $14.40 (FY 07) 1 Cedar Rapids $14.11 Average without Dubuque $19.00 The highest ranked city (Iowa City) is 100% higher than Dubuque's rate, and the average is 35% higher than Dubuque. The sewer fees are recommended to increase by 9%. Increased operating costs account for 5% of this increase. Debt payment for capital needs accounts for 3% of this increase. A facility plan will be conducted in Fiscal Year 2007, which will culminate in a major renovation plan that will require long-term debt, so 1 % of this increase and future year increases are to provide capacity for that debt. From Fiscal Year 1993 through Fiscal Year 2007, this is an average of 1.8% annual increase in sewer fees with nine of those years showing no increase. FY 06 Sewer Rate Comparison for Nine Largest Iowa Cities 9 Iowa City $31.82 8 Des Moines $25.16 7 Waterloo $18.95 6 Ames $18.45 5 Council Bluffs $17.20 4 Sioux City $17.11 3 Cedar Rapids $16.52 2 Dubuque $15.78 (FY 07) 1 Davenport $13.76 Average without Dubuque $19.87 The highest ranked city (Iowa City) is 102% higher than Dubuque's rate, and the average is 26% higher than Dubuque. -28- . The Honorable Mayor and City Council Members January 9, 2006 Page 9 The refuse collection fee is recommended to increase from $8.70 per month to $9.46 per month. This is a 8.74% increase. From Fiscal Year 1994 to Fiscal Year 2007, this is an average of 0.5% annual increase, with five of those years showing a decrease and three years having no increase. FY 06 Refuse Rate Comparison for Nine Largest Iowa Cities 9 Ames $21.00 8 Cedar Rapids $13.85 7 Sioux City $13.13 6 Council Bluffs $13.00 5 Iowa City $12.60 4 Waterloo $12.30 3 Des Moines $11.75 2 Davenport $10.15 1 Dubuque $ 9.46 (FY 07) Average without Dubuque $13.47 The highest ranked city (Ames) is 122% higher than Dubuque's rate, and the average is 42% higher than Dubuque. e Fiscal Year 2007 Budaet Initiatives Management Team members attending the Faces and Voices Diversity Conference in Dubuque $6,205 Additional Marketing Funds for the Airport $10,000 Contribute towards a revenue guarantee to get another hub for the Airport through the existing carrier or an additional carrier $250,000 Part-time Inspector in the Building Department $42,363 $149,600 Part-time Custodial Services for Federal Building, including a lead custodian position, and a vehicle Increased funding for the Employee Diversity Training Program $28,350 Part-time Library Assistant in Circulation $16,124 $12,050 . Library van to provide material return boxes on west side -29- The Honorable Mayor and City Council Members January 9, 2006 Page 10 Part-time Landscaping Maintenance Worker $32,682 $5,000 Matching funds to East Central Intergovernmental Association to leverage funding for a full-time Transportation Planner from Federal Government at ECIA Equipment to make the Municipal Services Center the back-up Emergency Operations Center $3,736 Establish Community-Oriented Policing as a separate unit in the Police Department commanded by a Captain and the upgrade of the Police Officer positions in the unit to Corporals $38,112 Add one additional Corporal to the Community- Oriented Policing Unit to bring the staffing to five from four $77,462 Fund the Neighborhood Resource Center at the new Prescott School building in Downtown Dubuque $26,770 Add Wellness and Fitness Classes at Comiskey Park Community Center, Prescott School Community Center and Neighborhood Resource Centers $3,060 Part-time secretarial position in City Manager's Office, including equipment and office reconfiguration $29,366 Improvements to City technology, including a new website that will allow for internet payments $259,449 Power lift cots for ambulances $19,000 $26,538 $5,000 Vehicle to be shared by City Engineers Participate in a partnership to do a community-wide needs assessment for children Create Police Sub-station at Carnegie-Stout Public Library for Community-Oriented Policing use $13,556 -3D- The Honorable Mayor and City Council Members January 9, 2006 Page 11 e Renewal of Tutor. com at Library for youth $8,445 homework assistance via the internet Install security cameras at the Riverwalk $75,000 Provide equipment for Municipal Services Center to $13,000 become an Area Red Cross Shelter Creation of a Bluffs Comprehensive Plan $10,000 Assist Lifetime Center with relocation analysis $10,000 Relocate Chaplain Schmitt Memorial $80,000 Miller Riverview Park Expansion Study $57,500 Renovate Waller-Cooper Park, the last park that $45,000 has not been renovated Carnegie-Stout Public Library Renovation Project $1,469,875 e New Airport Terminal Project $16,610,060 Sanitary Sewers related to annexations $3,723,000 Catfish Creek Sanitary Sewer Interceptor $1,904,250 Reconstruction Bee Branch Creek Stormwater Restoration Project $19,813,329 IA32/Southwest Arterial $41,044,857 Mississippi River Main Channel Transient Boat $3,500,000 Dock Facility Water Mains related to annexations $2,175,000 E.B. Lyons Interpretive Center Expansion Well $15,000 Project E.B. Lyons Interpretive Center Expansion Septic $15,000 Tank Project e Federal Building Renovation $2,200,205 -31- The Honorable Mayor and City Council Members January 9, 2006 Page 12 Intermodal Transportation Facility in Port of Dubuque $12,000,000 Design Guidelines for Downtown Master Plan Implementation $65,000 Community Health Center $250,000 $500,000 Community Marketing The largest operating budget financial issue in this budget deals with the huge increase in costs of $438,841 related to Transit. I am recommending a combination of service modifications, a fare increase and an increase in the property tax subsidy from $710,543 in Fiscal Year 2006 to $923,384 in Fiscal Year 2007, for an increase of $212,841. Also looming in the background is the remote possibility that the Iowa Supreme Court will agree with the Des Moines District Judge that found the City of Des Moines' Utility Franchise Fee contrary to State law. The Fiscal Year 2007 projection for Utility Franchise Fees in Dubuque is $1,481,525, all for property tax relief. Should a refund of past collections be ordered, the City has collected $2,722,669 through 2005. If this 2% Utility Franchise was no longer collected, it would not save the consumer any money, because it would be automatically replaced by the 1 % County Local Option Sales Tax and the 1 % Dubuque Community School District Local Option Sales Tax. Conclusion It was another great year for Dubuque, highlighted by the completion of the envision process by the Dubuque Area Chamber of Commerce and the Community Foundation of Greater Dubuque. There were 38 new non-residential permits issued in Fiscal Year 2005. This is a large increase over the 27 built in Fiscal Year 2004. The valuation of non-residential permits was $66.1 million, up from $40.3 million in Fiscal Year 2004. Calendar Year 2005 was the fourth consecutive year of record real estate sales, with $168 million in sales through October 2005. Three significant agreements were reached in 2005. The Mediacom Franchise, the lease that will lead to the expansion of the Mississippi River Museum and Aquarium and the agreement to allow table games at Dubuque Greyhound Park and. Casino. -32- . . . The Honorable Mayor and City Council Members January 9,2006 Page 13 Approximately 3,000 jobs have been added to the local economy since the beginning of the Greater Dubuque Development Corporation River Valley Initiative. Dubuque ranked second in the State for job growth between July 2002 and July 2005. This budget is about growth. In 1999 the City of Dubuque had no 4-lane connections to an interstate highway system. Now Dubuque has five 4-lane connections to the outside world: . 1999 - Highway 61 4-laned to Interstate 80 at Davenport . 2004 - Highway 20 4-laned to Interstate 35 north of Ames . 2004 - Highway 151 4-laned to Highway 380 in Cedar Rapids . 2004 - Highway 218 in Waterloo, connecting to Dubuque by 4-lane Highway 20, opened 4-lane as part of the Avenue of the Saints that connects to Minneapolis/St. Paul . 2005 - Highway 151 4-laned to Interstate 90-94 at Madison, Wisconsin This was a complex and challenging budget and it required the assistance of many City of Dubuque staff members. I am especially proud of the work that was done this year, including input from Department Managers and City Commissioners. I would like to thank Budget Director Dawn Lang, along with Office Manager Juanita Hilkin and Secretary Kevin Firnstahl, for putting together the budget, with the assistance of Assistant City Manager Cindy Steinhauser. Corporation Counsel Barry Lindahl and City Clerk Jeanne Schneider continue to provide their expertise and assistance throughout the budget process. I respectfully submit this budget for consideration and deliberation. While I know that all needs and requests were not met, I believe the budget as presented keeps the community moving forward in a fiscally responsible manner. fY1J if~ ,ftt{k Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager -33- e MICHAEL C. VAN MILLIGEN . Dubuque City Manager Guiding Principles of the Management Philosophy INPUT-ORIENTED . Team members should take advantage of the valuable input that can be provided by citizens and employees for departmental decision-making. THEMES FOR EFFECTIVE USE OF THE GUIDING PRINCIPLES . Believe that others can provide valuable input . Understand the benefits of receiving input from others . Develop the processes that capitalize on the input of others . Adopt an open door policy which invites input from others . Understand the benefits of empowering others . Seek first to understand and then to be understood - Steven Covey . Motivate staff and encourage employee initiative . Delegate tasks to maximize the use of available resources e PROBLEM SOLVERS . Team memhers' approach to issues should he to focus on what can be done to solve the prohlem. THEMES FOR EFFECTIVE USE OF THE GUIDING PRINCIPLES . Create programs that help others be more creative in solving problems . Perceive problems as opportunities . Avoid the use of policies to get out of having to solve the problem . Look to others to help solve problems . Encourage risk. taking . Practice flexibility . Understand that bureaucracies function best in black and white issues while most issues are varying shades of gray DEVELOP PARTNERSHIPS . Team members can be more effective by developing partnerships w1ith other departments and outside organizations. THEMES FOR EFFECTIVE USE OF THE GUIDING PRINCIPLES .. . Form teams around defined tasks . . Encourage employee involvement through problem~solving task forces . Develop team processes for decision making and setting goals and objectives . Facilitate the group process -35- Dubuque Awards & Recognition January 6, 2006 Name Institution Recognition Year Phoenix A ward (EP A Region 7 The Phoenix Awards Recognition for Excellence in 2005 Winner) Institute Brownfield Redevelonment Best Development A ward 1,000 Friends ofIowa Best Development A ward for 2005 America's River Proiect 10 Great Places to Discover USA Today One of" I 0 Great Places to Discover 2005 Midwest Charm Midwest Charm" Employer of the Year Dubuque American Employer of the Year for support of 2005 Legion Post 6 City employees activated and deployed in Guard and Reserve Units. Dozen Distinctive Destinations National Trust for One of America's Dozen Distinctive 2005 Historic Preservation Destinations 2005 -- Annual List Promotes Herita~e Tourism Preserve America Mrs. Laura Bush and the Historic preservation 2004 Federal Government Achievement in Economic International Downtown Americas River 2004 Develooment Association All-Star Community Award Iowa League of Cities Americas River Project 2004 Main Street Award Main Street Iowa Best New Development/Construction 2004 Addy Award Advertising Club of Grand River Center Logo 2003 Dubuaue Airport Safety Enhancement Award US Department of Outstanding compliance with Title 14 2003 Transportation FAA CFR Part 139 Central Re~ion Americas Crown Communities American City & Crown Community 2003 County Best Total Building Rehabilitation Dubuque Main Street Five Flags Theater 2003 Ltd. Environmental Certificate Participation in shredding and 2003 recycling program resulted in saving 23 trees from destruction Excellence in Communication Dubuque Area Labor- Interest-Based Bargaining Committee 2003 Mana~ement Council Excellence in Concrete Iowa Ready-Mixed Mississippi River Walk Phase II 2003 Concrete Association Family Self Sufficiency Program US HUD/Region 7 Implementation of FSS Program 2003 Success Kansas City Office of Resulting in High Enrollment Public Housin~ Honorable Mention Partnership International Economic Americas River Partnership 2003 Award Development Council Housing Choice Voucher Horne US HUD/Region 7 Outstanding efforts in the 2003 Ownership Program Success Kansas City Office of implementation of home ownership Public Housin~ Ken Kringle Historic Preservation Historic Preservation Five Flags Theatre - Excellence in 2003 Award Commission rehabilitatin~ an historic structure Public Library Accreditation State Library ofIowa Standards of Accreditation 2003 -36- e e . Dubuque Awards & Recognition January 6, 2006 Tree City USA National Arbor Day The City has received this award 2003 Foundation annuallv since 1989 CAEFR Report Government Finance Certificate of Achievement for Officers Association Excellence in Financial Reporting The City has received this award for 15 consecutive Years. Iowa APA Port of Dubuque Master Plan 2002 Superior Levee Maintenance Corps of Engineers - US City of Dubuque Flood Protection 2002 Award Armv Program Outstanding Beautification Project Dubuque Main St. 11" Flat Iron Park 2001- (Landscaping) Anniversary Award 2002 Innovative Approach to Addressing US DOT Federal Transit Innovative Approach to Addressing 2001 Public Transportation Services Administration Region Public Transportation Services VII Presidents Service A ward Iowa Chapter of the Janet Walker for outstanding effort 2001 NAHRO and achievement in the promotion and success ofIowa NAHRO Airport Safety Enhancement A ward US Department of Outstanding compliance with Titl7 14 2000 Transportation FAA CFR Part 139 Central Repion Best Public Education Campaign Iowa Recycling Iowa Recycling A ward 2000 AgencieslDNR Certification of Investment Policy Municipal Treasurers The investment policy submitted for 2000 Association of the U.S. review meets the standards. First and Canada City in Iowa to receive the award 1/18/95. Excellence in Communication Dubuque Area Labor- Solid Waste Disposal Team 2000 Management Council National A ward of Merit in National Association of Affrrmative Customer Services 2000 Administrative Innovation Housing and Redevelooment Officials Public Policy Change Process USHUD Local Best Practice Winner 2000 Special Recognition in Waste Governors Iowa City of Dubuque Recycling Program 2000 Management Environmental Excellence A ward Handshake Award of Appreciation Central Alternative High 1999- School 2000 FTA Region 7 Y2K Compliance US DOT Federal Transit Second City to Reach Y2K 1999 Award Administration Comoliance Reouirements National Significance and Iowa Chapter American Eagle Point Park 1999 Contribution to the Quality of Live Society of Landscape in Iowa Architects Prism Award Iowa Committee on Efforts to promote diversity in the 1999 Diversitv community Excellence in Trust Dubuque Area Labor- Health Care Committee 1998 Manap"ement Council All-Star Community Award Iowa League Cities Dispute Resolution Center 1997 -37- Dubuque Awards & Recognition January 6, 2006 Excellence in Programming Iowa Park and Therapeutic Recreation Programs 1997 Recreation Association International Water Tasting & Winter Festival of I" Place Toast to the Tap 1997 Competition Waters Excellence in Health Care Dubuque Area Labor- Health Care Committee 1996 Mana.ement Council School Business Partnership Prescott Early Childhood Working together to nurture each 1996 Center other?s growth. Fair Housing Assistance V.S Dept. ofHVD Outstanding performance in the fair 1995 housing assistance program All-Star Community Award Iowa League of Cities Developers Roundtable 1994 (Iowa League of Municipalities) All-Star Community Award Iowa League of Cities Prescription Drug Program 1994 (Iowa League of Municipalities) Excellence in Collaboration Dubuque Area Labor- Health Insurance Task Force 1994 Mana.ement Council Community Water Fluoridation Centers for Disease For contributions made on behalf of N/A Control and Prevention community water fluoridation. -38- e e . ~ -< == u ~ -< z o ;...! Eo-; -< N ;...! Z -< (J ~ o ~ o 01 o ~ o ~ ~ o ~ Eo-; ;...! U ... ... .!! (J >- :!: (J ...J o z ::> o o >- I- o Cii Ul C ::l o (J c o :;; '" ... o e. ... o (J 1:: o e. ... :.:;: ~ '" ... ..c ::i z- U c '" - en 'w en <( ~ C1l OJ IE o c 2i:: '" C1l E- ~.o 0'" -(J c .2 :n ::l a. 0::: W C) <C z <C :!: ~ o ~ C1l OJ '" C '" :2 c C1l E c- o Q; > '" o " o o .<: ~ o .0 .<: Ol 'ijj Z ~ C1l OJ '" C '" :2 Cii c c o Ul ~ C1l a. ~ o ti .~ o Q) Ol " ::l lD -39- c - o Ul ~ -'"E '" 0 E .~ 1; oGle. -UlGl -= e c o _ .. C ::l - Gl =eE 0-1:: a.c", ...oe. Gl (J Gl '; e 3: - c c Ul Gl "'-E E-g,1:: ::l.- '" :I; 0:: e. Gl e - >-c- 05:!:cu; ClcEE c::le. .- E 01:: Ul _ '" ::lEGle. oO>Gl :I;(J~e - c ... Gl Gl E -1:: '" '" 3:e. Gl e - Ul C .l::GlGl -oE fti.- 1:: Gl 1: '" :I;Gle. UlGl e Cl- C C .- Gl ~ E Gl1:: c '" .- e. ClGl al:ie - C Gl Gl E .= 1:: ll..'" e. Gl e >.C u '" c: E C1l '" E!'0l '" '" E c: w~ - C Gl Gl o E =1:: 0", a.e. Gl e - C Gl Gl o E c1:: :g.. .- e. ll..Gl e - ClUlC C Gl Gl .- 0 E C .- 1:: C 1: '" .!!!Gle. a.UlGl e Ul C >-.51 0_ C '" C1).~ Clc ... ::l Gl E .nE o (J Ul_ "'c ... Gl o E 3:1:: o .. =e. ..c Gl ::le a. -- o c c .- Gl Gl E E E o e.1:: co.. o Cii e. o > Gl WGle e E c: Q).Q -en cn._ >.> UlCi Ol_ C"Ui .- c: -tOOl '" ~ a.f- Ul Gl 0- .- c 1: Gl Gl E Ul1:: .. '" ... e. ::l .. .!!!e Gl ..J "' ~ ~ c: J!l 0 c: ._ w.x:Cij Um~ u a. u "S Q) (3 0:: - C ClUlGl .S B E "C.- 1:: =1:", ::lGle. !DUl.. e CITY OF DUBUQUE Boards & Commissions Airport Commission Airport Zoning Commission Airport Zoning Board of Adjustment Arts and Cultural Affairs Advisory Commission Board of Appeals - Building Code Board of Review Cable Community Teleprogramming Commission Cable TV Regulatory Commission Civic Center Commission Civil Service Commission Community Development Advisory Commission Electrical Code Board Enterprise Zone Commission Environmental Stewardship Commission Historic Preservation Commission Housing Advisory Trust Fund Committee Housing Code Appeals Board Housing Commission Human Rights Commission Investment Oversight Commission Library Board of Trustees Long Range Planning Advisory Commission Mechanical Code Board Park and Recreation Commission Plumbing Board Transit Board of Trustees Zoning Advisory Commission Zoning Board of Adjustment -40- e e e PARTNERSHIPS AND CONTRACTED SERVICES The City of Dubuque has made significant strides in forming partnerships with other organizations in an effort to avoid service duplication and to combine resources for greater impact than could be produced independently. Among the more prominent partnerships the City has formed in recent years: Business partner with Marshall and Prescott Schools DARE Program - County Sheriff and Dubuque Community School District Community Advisory Panel to promote harmonious relations between the Police and minority citizens - NAACP Dubuque County Drug Task Force - County Sheriff and County Attorney Jail Diversion Program - Partnership with Dubuque County and mental health institutions to address alternatives to jail for the mentally ill Heritage Trail development - Dubuque County Conservation Board DREAMS Program for lower income, first time homebuyers - American Trust, Dubuque Bank and Trust, Firstar Savings, Mercantile Bank, and Dubuque County Extension Office HEART Program - partnership with Four Mounds Foundation, Dubuque Community Schools and Four Oaks for developing skills for at-risk students and provide renovation of affordable housing stock Homeless Coordinating Board - Gannon Center, Legal Services, Project Concern, Visiting Nurses Association, Maria House and Community Oriented Police Officers Mississippi Valley Promise - mobilizing to build the character and competence of our nation's youth . Intergovernmental cooperation and regional planning - East Central Intergovernmental Association (ECIA) and Dubuque Metropolitan Area Transportation Policy Committee Economic development - joint efforts of City, Greater Dubuque Development Corporation, Dubuque Main Street, Ltd., Dubuque Initiatives and Dubuque Area Chamber of Commerce River Valley Initiative - Business recruitment and job creation program with Greater Dubuque Development Corporation . Tri-State Health CARE Coalition - partnership with numerous employer and labor groups to address health care issues Culture & Entertainment District - partnership with State of Iowa, Dubuque Main Street, the Cultural Alliance and other arts organizations to establish cultural programs in downtown. . Uptown Recreation Program - some program facilities and/or activities provided by Dubuque Museum of Art, Four Mounds Foundation, and numerous public schools and churches Riverfront Development - joint fund raising and planning efforts with America's River Corporation (whose board represents Dubuque County Historical Society, Chamber of Commerce/Convention and Visitors Bureau, Dubuque Main Street, Port of Dubuque Property owners and the Dubuque Racing Association) Partnership with Dubuque Community School District to create a Downtown Neighborhood Resource Center at Prescott school Partnership with SI. Mark's Community Center and neighborhood associations for use of Comiskey Park as a Neighborhood Resource Center Partnership with SI. Mark's Community Center and Dubuque Community School District for before and after school programming at public schools Youth Baseball and Soccer - use City-owned facilities to play games and practice . High schools and colleges use City-owned baseball facilities for games . Jaycees use Hawthorne Street Peninsula for Fourth of July fireworks . Riprow Valley Coalition with City and State partners to develop new park In addition to forming partnerships with other organizations, the City is aggressively pursuing alternative service delivery methods when an alternative might provide equal or better service in a more cost efficient manner or provide a service the City would not otherwise provide. Examples of contractual arrangements include: . Dubuque Arboretum Association leases Marshall Park and operates the Dubuque Arboretum and Botanical Gardens -41- PARTNERSHIPS AND CONTRACTED SERVICES Page 2 State of Iowa leases the E.B. Lyons Nature Center and Preserve and operates it as part of the Mines of Spain . The Four Mounds Foundation signed a lease for Four Mounds Park and operates it for public use . Dubuque County Historical Society leases the Ham House and operates it as a museum . A private firm processes and markets municipal collected recyclables Painting of street markings is contracted Concession operations are leased at Flora Pool, Sutton Pool, and McAleece Park and Recreation Complex . Animal shelter services are contracted to the Dubuque Humane Society . Water meter reading is contracted to Peoples Natural Gas . A private firm does sludge hauling for the Water Plant . A private firm is contracted for management of Five Flags Civic Center A private firm is contracted for management of Grand River Center The activities shown on this page are only examples of the many programs, services and coordination provided through the joint efforts of City departments and other public and private entities. The total complement of joint efforts will surely change with progression of the program and service reviews. -42- e e I- ~ D.. !!il ~ I- ~ It: W D.. o It: D.. :I: I- tii3E Cll/l ow :)Cl 1Xl~ ~U 0<( ND.. 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Total Budget Operating Budget Capital Budget City Tax Asking City Tax Rate Taxable Valuation TIF Increment Valuation Tax Rate Change CITY OF DUBUQUE FISCAL YEAR 2007 RECOMMENDED BUDGET FACT SHEET $ 108,916,409 $ 75,701,827 $ 33,214,582 $ 17,169,623 $9.9803 per $1,000 $1,720,351,898 $138,074,878 $+.2812 -5.90% less than FY 2006 4.79% more than FY 2006 -23.65% less than FY 2006 6.04% more than FY 2006 2.90% more than FY 2006 3.05% more than FY 2006 20.45% more than FY 2006 Residential = -3.73% Impact on Property Owners (City Taxes Only) Industrial = +2.90% Commercial = +12.23% * *Includes 10% equalization order Sewer Recommended Fee Adiustments 9% rate increase effective July 1, 2006 (includes a 1 % increase annually towards a reserve to fund a future borrowing on the anticipated Water Pollution Control plant renovation). 4% rate increase effective July 1, 2006 Stormwater monthly utility rate increases to $2.25 from $1.79 per month per Standard Family Unit (SFU) equivalent effective July 1, 2006. Monthly rate from $8.70 to $9.46 effective July 1, 2006. Large Item Collection activity proposed fee increases are: a) Minimum fee from $6.00 to $7.00. b) Add new fees for extra services (immediate service and second trip/late setouts). c) Eliminate the discount allowed for excessive volumes of materials. The fee for each additional collection vehicle hopper full (1.5 cubic yards per hopper full) would increase from $4.00 to $7.00. The intent is to reduce the program subsidy paid by all City solid waste collection service customers through their solid waste collection fee to no more than $.05 per month. This can be accomplished by increasing charges to the 11 % of customers (2,200) who use the Large Item Collection service each year. These suggested fees are intended to be reasonable, moderate, and affordable, so as not to cause increased illegal dumping in ditches, alleys, and/or at reuse centers. It is also intended to increase the diversion of large item materials for recycling and beneficial re-use. Non-sufficient fund fee will increase from $10 to $15 in Utility Billing and will be added at the Finance/City Treasurer area. -59- Water Stormwater Refuse Finance-Utility Billing FY 2007 Recommended Budget Fact Sheet Page 2 Shut-off / turn-on fee will increase from $15 to $20. Implements a minimum monthly water bill ($5) for inactive water meters and adds the stormwater utility fee ($2.25) to inactive accounts. Parking Establishes standardized rental rates for all parking facilities and lots: a) Lot 1 (9'h and Central) Monday-Friday (n/a); $150 Sat./Sun. b) Lot 2 (9th and Bluff) $50 on Saturday and Sunday only. c) Lot 3 (5th & Bluff) $2.50/space Monday-Friday before 5 p.m. (50 space rental maximum); $250 on Sat./Sun. and holidays. d) Lot 5 (City Hall) $200/day, Saturday and Sunday only. e) Lot 6 (Library) $50 when Library is closed only. t) Lot 10 (5'h & Main) $350 Monday-Friday & $200 Sat./Sun. g) Lot 12 (4'h & Central) $100 daily-40 spaces available. h) Locust Ramp (830 Bluff) $100/day Monday-Friday after 5:00 p.m.; $150/day Sat./Sun. i) Iowa Ramp (701 Iowa) $100/day Monday-Friday after 5:00 p.m.; $150/day Sat./Sun. j) 5th Street Ramp (501 Iowa) $200/day Monday-Friday after 5:00 p.m.; $300/day Sat./Sun. k) 4'h Street Ramp (100 W. 4th) $150/day and $2.00 prepay. 1) Prepaid meter: Contractors are $5.00/day or $3.00/day for projects lasting over 3 months. Non-profits are $2.50/day. m) Meter bag: $50/month (marked construction vehicle parking only). n) Washington Park meters $100/day. 0) Main Street Meters (5'h to 8'h Street) $85/day. Recreation Golf fee increases proposed in the Golf Maintenance activity are: League rate (+$.50); Individual passes (+$10.00); Couples and family passes (+$15.00). Adult Athletics activity fee increases proposed are: +$10 per team for basketball, dodgeball, and softball; and a $35-$45 decrease per team for volleyball. Non-resident fees have been eliminated for volleyball and basketball. ...................................................................................................................................... Positions Full-Time Eauivalent Chas. Full-Time Eauivalent All Funds + 9.72 630.84* * Included Full Time employees (516.48), Part Time employees (67.41), and Seasonal (46.95) -60- . e e ASSUMPTIONS USED IN PREPARING THE FY 2007 RECOMMENDED BUDGET The major assumptions used in preparing the Fiscal Year 2007 recommended budget include the following: Assumptions - Resources a. Unencumbered funds or cash balances of $200,000 will be available in FY 2007 and each succeeding year to support the operating budget. b. State-shared revenues, such as Bank Franchise, Municipal Assistance, Liquor Sales, Personal Property Replacement Taxes, and Machinery and Equipment Property Tax Replacement have been permanently cut from the City's resources in the last 3 budget years. c. Hotel/motel tax receipts are projected at the same level as the FY 2006 budgeted receipts (which included a 10% increase over FY 2005 budgeted receipts), and then increase at an annual rate of 3 percent per year. d. State Transit operating assistance will also be maintained at its FY 2006 budgeted level. e. Miscellaneous revenue, excluding state shared revenues, has been estimated at 2 percent growth per year over budgeted FY 2006. f. Gaming revenues generated have been based on revised projections from the implementation of a new lease agreement and expanded gaming operations from increasing slot machines (600 to 1,000) and adding table games. g. Gaming revenues from taxes and the DRA lease (not distributions) have changed from the FY 2006 split of 62.72% /37.28% between operating and capital budgets to a split of 70% /30% for FY 2007. h. The residential rollback factor will decrease from 47.960 percent to 45.996 percent or a 4.10 percent reduction for FY 2007. For Fiscal Years 2008 and beyond, a 10-year average for rollbacks and equalization orders was used. i. Property reappraisals were completed by the Dubuque City Assessor's office and went into affect January 1, 2004. The FY 2006 assessed valuation for the City of Dubuque is based on the reappraised valuations. Residential property valuations increased 6.2 percent, Commercial property valuations decreased 3 percent and Industrial property valuations increased 19.9 percent. FY 2007 reflects this increased assessed value for the average homeowner. Assessed valuations were increased 2 percent per year beyond FY 2007. -61- j. Sales tax projections anticipate 50 percent of four quarterly payments in the General Fund for property tax relief. Sales tax projections for FY 2007 are projected at the same level as the FY 2006 budgeted receipts (which included an aggressive 10% increase over FY 2005 budgeted receipts), and then increase at an annual rate of 3 percent per year. k. During the FY 2006 budget process, the City Council approved changing the amount requested from certain parcels in the former Downtown TIF district from 75 percent to 100 percent of Tax Increment revenue, excluding certain economic development grants that require 100 percent of the revenue from a particular project. This district is now referred to as the Greater Downtown TIF after the Downtown and Ice Harbor TIF districts were combined. The additional TIF revenue from requesting 100% of the increment in the Greater Downtown TIF district and the additional due to increased valuation is recommended to be used as follows in the FY 2007 budget: a) The FY 2007 five year CIP includes using a portion of the additional funds in FY 2007-2010 for Parking Fund major ramp improvement debt service abatement ($450,806 total, then parking user fees will abate remaining debt). b) The federal building will be added to the Greater Downtown TIF district and expenses relating to the required capital improvements from the acquisition will be recovered from TIF revenues. c) A project to build a Port of Dubuque Intermodel Parking Facility is planned in FY 2010 and the GO bond will be abated with TIF revenue. d) A park in the Port of Dubuque is planned in FY 2009 and the expense will be recovered from TIF revenue. I. For purposes of budget projections only, it is assumed that City property taxes will continue to increase at a rate necessary to meet additional requirements over resources beyond FY 2007, with the gaming revenue (from DRA lease and taxes) split remaining at the FY 2007 proposed of 70% operating budget and 30% capital budget. m. Gas and electric franchise fees have been adjusted based on two year's trend data and an estimated increase in energy costs. The FY 2007 budget is estimated to increase 13 percent over FY 2005 actual for electric and 20% over FY 2005 for gas, and then increases at an annual rate of 2.5 percent per year. n. New revenues include $45,000 per year for the Dog Track Hotel Land Lease and $225,000 per year beginning in FY 2009 for Diamond Jo parking privileges. AssumDtions - Reauirements a. A wage increase is reflected in the projections for FY 2007 of 3.5% and 3% for each succeeding year. Police and Fire retirement rates have been decreased 1.6 percent, saving the City approximately $45,000 per year. -62- . b. Medical expense costs for Police and Fire retirees is anticipated to increase for FY 2007 from $31,000 to $100,000 based on actual trend data. c. Health insurance costs are estimated to increase 7 percent over the FY 2006 budgeted rates with FY 2007 representing the 2nd year employees are contributing 10% towards their health insurance premium. Estimates for FY 08- 11 have been increased by 7 percent per year. d. General operating supplies and services are estimated to increase 6 percent over actual in FY 2005 or 3 percent over budget in FY 2006, depending on which year reflects expenditures more accurately. 2.5 percent increase is estimated in succeeding years. e. Electrical energy expense is estimated to increase 13 percent over FY 2005 actual expense, then 2.5 percent per year beyond. f. Natural gas expense is estimated to increase 20 percent over FY 2005 actual, then 2.5 percent per year beyond. There is no degree-day adjustment this year and is higher due to natural disasters affecting costs. g. The Convention and Visitors Bureau contract will continue at 50 percent of actual hotel/motel tax receipts, less a $35,000 loan repayment. . h. Equipment costs for FY 2007 are estimated to increase 3 percent over FY 2006 budget, then 2.5 percent per year beyond. i. Debt service is estimated based on no additional tax-supported General Obligation bond sales in FY 2007 - 2011. j. Unemployment expense in the General Fund has been increased from $30,000 to $50,000 for FY 2007 based on past years actual experience. k. Motor vehicle fuel expense is estimated to increase 25 percent, low sulfur diesel fuel increases 40 percent, and high sulfur diesel fuel increases 29 percent over FY 2005 actual expense, then 2.5 percent per year beyond. I. Postage rates for FY 2007 are estimated to increase 9.4 percent over FY 2006 and remain at that level per year beyond. m. Damage claims expense for FY 2007 is anticipated to increase from $75,500 to $100,000 to cover the aggregate deductible based on past years actual experience. . -63- ~ '" '" N .. ~ ~ >- .. w Ol Z W .. x w ~ ~ " w .. o " .. OlO WZ 0" s:~ ffi::J Ol;:: ....'" ~~ ~O ZOl iru ..:l! o~ f!!~ Ol" 0" Ow W> "''' a" ~~ "'w OOl ~~ ~1l (j~ ....... ~~fcn wouw C)....-~ ZO:(Z> <::::):=111:: ::cz:Ew UZLl.U) "0 .... ~~ z"x wW" 0..... (jj~ ::!.. >- f~ffiw ~o....w Z....o:(lI.. ~U);: " o w o ii: o 3!: w... Ol '" .. w "w i( " ~ :<: ... Z o :l! " w ;: w Ol " w ... " ;: " iIi >- .... " o Ol ii: ... '" ~ ... ~ '" .0 '" '" .. Ul ... '" '" ci ... '" '" ..; Q ~ Q >- .. '" Q ~ 9 '" '" ~ " '" ~ .. Ul ... '" '" ..; '" '" '" ..; '" Q Q >- .. '" ~ ~ ..; ... ~ ~ ..; ~ o o .0 Ul ... o '" " '" o o " a; Q >- .. '" ~ ~ ..; '" ~ '" '" o o ,; Ul ... o o ..; ... '" '" ..; N Q Q >- .. ... 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" 'OJ! ~ s~~~ <II CD U Ql e g.2l ;; :~e{J :: ca e ~ !Eg~~ ~iai- C"'coni ~!~~ .&~~:i ~<Il03: -o.?J '0 m .9l~l'-tl ~ 3: g.5 "u - N ~ := ~>- ~ tii :i:Q LL. <<I Z >- C:.5 QI o c::;, <>>'0 i= It) E E.2 o~o~.~ ~.i!7iiQ)Ul ~.~85.~ A.g~5~ (!) 0'- ll) 0 !;-o.2~i3.. o <II III > Q) ~.~,~~~ t!)~~~w W .......-(1) 3: D:: 2 e :2 Ql II) a.c..(lIUJ ~~~:i~ 01-1- I- Z"';N (") <' o ~ > o o ~ <; ~ 0. g o o o o o ~ 1> 0. .. " ~ ~ o . :! > t , , e "- ~ . .. . ~ E . :<: . ;; " c '6 c of . ~ c " 1; " ~ c . . ~ E . '" . " ~ ~ > . ~ ;; B . . . :l >- t: . "- e "- ~ . . . ~ o ! ~ . ili PROPOSED RATES AND COMPARISONS e Water Rate Comparison for Largest Iowa Cities with Water Softening Rank City Water Rate (FY 06) 6 5 4 3 2 1 10waCi Ames Council Bluffs Des Moines Dubuque Cedar Ra ids Average wlo Dubuque (800 cubic feet/residence avg.) $28.80 $18.42 $17.44 $16.22 $14.40 (FY 07) $14.11 $19.00 Dubuque's water is some of the best in the world! The highest ranked city (Iowa City) is 100% higher than Dubuque's rate, and the average is 35% higher than Dubuque. . Sewer Rate Comparison for Nine Largest Iowa Cities Rank City Sewer Rate (FY 06) (Based on 800 cubic feet/month) 9 Iowa City $31.82 8 Des Moines $25.16 7 Waterloo $18.95 6 Ames $18.45 5 Council Bluffs $17.20 4 Sioux City $17.11 3 Cedar Rapids $16.52 2 Dubuque $15.78 (FY 07) 1 Davenport $13.76 Average wlo Dubuque $19.87 Dubuque is the SECOND LOWEST in the state for Sewer Rate. The highest ranked city (Iowa City) is 102% higher than Dubuque's rate, and the average is 26% higher than Dubuque. . -65- PROPOSED RATES AND COMPARISONS Refuse Rate Comparison for Nine Largest Iowa Cities Rank City Monthly Rate Pay As You (FY 06) Throw 9 Ames $21.00 No - Private Service 8 Cedar Raoids $13.85 Yes 7 Sioux cTtV $13.13 No 6 Council Bluffs $13.00 No 5 Iowa Citv $12.60 Yes 4 Waterloo $12.30 Yes 3 Des Moines $11.75 Yes 2 Davennort $10.15 Yes 1 Dubuaue $ 9.46 (FY 07\ Yes Average wlo $13.47 Dubunue The highest ranked city (Ames) is 122% higher than Dubuque's rate, and the average is 42% higher than Dubuque. Stormwater Rate Comparison for Iowa Cities with Stormwater utilities Rank City Stormwater Rate (FY 06) 14 Des Moines $6.12 13 Acklev $3.08 12 Cedar Rapids $3.04 11 Carroll $3.00 10 Garner $2.63 9 Davenoort $2.50 9 DeWitt $2.50 8 Ames $2.25 8 Dubuaue $2.25 IFY 07) 7 Marshalltown $2.16 6 Iowa Citv $2.00 6 Burlinaton $2.00 5 Boone $1.95 4 Sioux Citv $1.84 3 Clear Lake $1.55 2 Bettendorf $1.50 2 Marenqo $1.50 1 Mason Citv $1.00 Average wlo Dubuque $2.39 The highest ranked city (Des Moines) is 172% hi9her than Dubuque's rate, and the average is 6% higher than Dubuque. -66- PROPERTY TAXES . How Your Property Tax Rate is Split FY2005/2006 Consolidated Rate of 32.08764 Area School 0.60517% Independent .60226% City 28% School District 40% o City . County . School District . Area School . Independent . How Your Property Tax Payment is Split FY 2005/2006 $785.45 CalculatinQ City Property Tax Assessed Value 116,368 Rollback 0.4796 Taxable value 55,810 City Tax rate/$1.000 9.6991 Gross Prop. Tax 541.31 Homestead Credit (36.69) Net Property Tax 504.62 o City. County. School District. Area School. Independent . The above chart is based upon an average home assessment of $116.368. The inset box provides a summary of how your City property tax is calculated. -67- FISCAL YEAR 2007 RECOMMENDED BUDGET RECOMMENDED TAX RATE AND TAX LEVY . TAX LEVY Total Tax Levyl Non-Debt Levy Debt Levy Tax Rate Non-Debl Lew Tolal Levy Excl' Debt (Tax Asking wlo Debt) FY 2005 $16,150,405 $222,330 $16,372,735 Divided by Valuation Subject to Property Tax $1,624,116829 $1,738,497.470 Tax Rate $9.9441 $0.1279 $10.0720 Debt Lew Total Debt Levy (Tax Asking for Debt) FY 2006 $16,192,215 $0 $16,192,215 Divided by Valuation Subject to Property Tax $1,669,454600 $1,784,090311 For All Levys Excluding Debt Service Tax Rate $9.6991 $0.0000 $9.6991 Tax Rate = Net Requirement FY 2007 $17,169,640 $0 $17,169,640 $1,720,351.898 $1,858,426.776 Tax Rate in Dollars per $1,000 Tax Rate $9.9803 $0.0000 $9.9803 TAX RATE BUDGET FY 05 BUDGET FY 06 RECOMMENDED FY 07 TAX LEVY FUNDS Rate in Amount Rate in Amount Rate in Amount 00Ilars/$1,000 Levied 00Ilars/$1,000 Levied 00Ilars/$1,000 Levied General Fund $4.6461 $7,870,599 $4.4414 $7,414,641 $4.5781 $7,875,981 Transit Fund 0.3799 617,048 0.4256 710,543 0.5367 923,384 e Debt Service Fund 0.1279 222,330 0.0000 0 00000 0 Tort Liability Fund 0.2099 340,971 0.2200 367,274 0.2132 366,796 Trust and Agency Fund 4.5082 7,321,787 4.6121 7,699,757 4.6522 8,003,479 TOTAL $10.0720 $16,372,735 $9.6991 $16,192,215 $9.9803 $17,169,640 Tax Rate Comparison for Nine Largest Iowa Cities Rank City Tax Rate (FY 06) 9 Waterloo $19.16 8 Council Bluffs $18.39 7 Sioux Ci $17.97 6 Iowa Ci $17.86 5 Des Moines $16.52 4 Daven ort $15.24 3 Cedar Rapids $13.99 2 Ames $10.17 1 Dubuque $9.98 (FY 07) AVERAGE w/o Dubuque $16.16 . Dubuque is the LOWEST in the state for property tax rate. The highest ranked city (Waterloo) is 92% higher than Dubuque's rate, and the average is 62% higher than Dubuque. -69- Impact of Local Option Sales Tax (LOST) on City's Share of Property Tax Paid by the Average Homeowner . $750 $725 $700 00 $675 ~ /'- r--: $650 0 ~ $625 ~ $600 $575 $550 $525 $500 $475 $450 2003 2004 2005 2006^ 200r . City Share of Property tax paid by the average homeowner with LOST . City Share of Property tax paid by the average homeowner without LOST In 1988 the citizens of Dubuque approved a Local Option Sales tax of 1 % to be used 50% for property tax relief, 20% for facility maintenance, transit equipment and economic development and 30% for street special assessment relief and maintenance and repair of streets. In 2006 approximately $3,611,829 will be generated to reduce the amount paid for by the average homeowner by $112.56. The above chart illustrates the amount the total levy would have to be if the Local Option Sales Tax had not been approved. . Impact of Gaming Revenues on City's Share of Property Tax Paid by the Average Homeowner $800 co ~ $750 <Xi <Xl co $700 '" $650 $600 $550 $500 $450 $400 $350 2003 2004 2005 2006^ 200r . Property Tax Paid by the awrage homeowner with Gaming . Property Tax Paid by the awrage homeowner without Gaming Rewnue . In 1984, the citizens of Dubuque approved a referendum allowing dog racing. In 1987, this expanded to include riverboat gaming and in 1994 slot machines at the dog track. In March 2006 this was expanded to include table games at the dog track. The City receives revenue from gaming, including operating lease revenue, taxes, riverboat admissions and 40% of the year- end profit distribution. In 2006, 44.53% of the total or approximateiy $5,889,474 will be generated and reduce the amount paid by the average homeowner bit $183.54. The above chart illustrates the total the average homeowner would have to pay without the contribution of gaming revenue. -71- V ALUA TION GROWTH . History of Taxable Debt Valuation ~ ~ .... C> ;;;; ~ .... g .... co .... a:i ~ ...., r-: C> ." ...., '" <t co. 18 .... C> N a:i ..... ;,;; 1,900,000,000 ~ C> ...., ~ ~ co. a:i ..... ~ .... ~ '" f:::: ~ ~ ." ~ 1,800,000,000 ~ N co. .... co a:i ~ co. .0 .... <<i N ~ ~ ." a:i ~ .... 1,700,000,000 co ...., ...., .... N .... ~ .... C> si .0 ~ ." 1,600,000,000 ...., ;,;; ~ ..... ~ ~ ~ .... 1,500,000,000 .... 1,400,000,000 1,300,000,000 1,200,000,000 1,100,000,000 1,000,000,000 FY FY FY FY FY FY FY FY FY FY 98 99 00 01 02 03 04 05 06 07 I_ Valuation Growth 1 . The FY 2007 budget is based upon a 4.17% increase, $74,336.465 to the taxable debt valuation for the City. Without Tax Increment Financing there is a 3.05% increase in the taxable valuation for all other levies (General Fund property tax levy). The total taxable debt valuation of $1,858.426,776 is made up of the following components: Valuation b Class of Pro e Residential & Ag property Ag Land & building Commercial property Industrial property Railroad bridge Other Utilities Less: Veterans credit Aa Land & buildina Total Tax Increment Financing (TIF) Taxable Levy Taxable Debt Valuation $ 865,698,842 $ 1,841,360 $ 806,919.499 $ 103,155,800 $ 826,274 $ 699,143 $ 88,206.488 $ (7,079,270) $ (1,841,360) 1,858.426,776 (138,074,878) 1,720,351,898 Percentage of Change from Valuation Prior Year 46.58% -3.05% 0.10% -30.40% 43.42% 13.19% 5.55% 2.63% 0.04% 0% 0.04% .0.85% 4.75% 5.49% -0.38% .1.90% -0.10% 100% 4.17% 20.45% 3.05% Rollback . The growth in the valuation for the City of Dubuque continues to be impacted by the State of Iowa rollback adjustment. The State adjusts taxable valuations based upon a formula using the growth of the value of agricultural land. In the late 1980's the rollback was 80.6%, meaning only 80.6% of the value was taxable. For FY 2007 the rollback for residential property is anticipated to be 45.996%. -73- IMPACT OF RECOMMENDED BUDGET ON CLASSES OF PROPERTY RESIDENTIAL $510 $505 $500 $495 $490 $485 $480 $475 ~ ... l5 .,. 2003 2004^ 2005^ 2006^ 2007 . C~y Property Tax paid by the average homeow ner ^The State of Iowa has underfunded the Homestead Properly Tax Credit three years in a row causing the average homeowner to pay more for their city portion of their properly taxes in Fiscal Years 2004, 2005 and 2006. This also changed the City's benchmark of $485.79 (of no increase to the average homeowner) for FY 2005 and FY 2006. FISCAL YEAR 2006 January 1, 2004 Valuation Less Rollback Factor Fiscal Year 2006 Taxable Value Fiscal Year 2006 City Tax Rate Fiscal Year 2006 City Property Tax Homestead Tax Credit Homestead Tax Credit Adjustment - 78% funded by State Net Fiscal Year 2006 City Property Tax $116,368 0.4796 $55,810 $9.6991 $541.31 ($47.04) $10.35 $504.62 .The FY 2006 property tax calculation takes into account the 6.2% average valuation increase for the average residential homeowner as determined by the reappraised valuations. FISCAL YEAR 2007 January 1, 2005 Valuation Equalization Order January 1, 2005 Valuation after Equalization Order Less Rollback Factor Fiscal Year 2007 Taxable Value Fiscal Year 2007 City Tax Rate Fisc..1 Yea; 2007 City PiOperty TCiA Homestead Tax Credit Net Fiscal Year 2007 City Property Tax $116,368 0% $116,368 0.45996 $53,525 $9.9803 $534.19 ($48.40) $485.79 Dollar Decrease in Property Tax Percent Decrease in Property Tax ($18.83) -3.73% -74- IMPACT OF RECOMMENDED BUDGET ON CLASSES OF PROPERTY e COMMERCIAL $3,600 $3,525 $3,450 $3,375 $3,300 $3,225 $3,150 $3,075 $3,000 '" '" '" M '" 2003 2004 2005 2006 2007^ . City portion of property tax paid by the average commercial tax payer ^Reflects State of Iowa mandated equalization order . FISCAL YEAR 2006 January 1, 2004 Valuation Fiscal Year 2006 City Tax Rate Fiscal Year 2006 City Property Tax $325,033 $9.6991 $3,153 'The FY 2006 property tax calculation takes into account the 3% average valuation decrease for commercial property as determined by the reappraised valuations. FISCAL YEAR 2007 January 1, 2005 Valuation Equalization Order January 1, 2005 Valuation after Equalization Order Less Rollback Factor Fiscal Year 2007 Taxable Value Fiscal Year 2007 City Tax Rate Fiscal Year 2007 City Property Tax $325,033 +10% $357,536 0.99151 $354,500 $9.9803 $3,538 Dollar Increase in Property Tax Percent Increase in Property Tax $385.49 12.23% . -75- IMPACT OF RECOMMENDED BUDGET ON CLASSES OF PROPERTY INDUSTRIAL '" a) a> .n '" $5,900 $5,700 $5,500 .... '" $5,300 ~ .n '" $5,100 $4,900 $4,700 $4,500 2003 2004 2005 2006^ 2007 . City portion of property tax paid by the average industrial tax payer FISCAL YEAR 2006 January 1, 2004 Valuation Fiscal Year 2006 City Tax Rate Fiscal Year 2006 City Property Tax $599,500 $9.6991 $5,815 'The FY 2006 property tax calculation takes into account the 19.9% average valuation increase for industrial property as determined by the reappraised valuations. FISCAL YEAR 2007 January 1, 2005 Valuation Fiscal Year 2007 Tax Rate Fiscal Year 2007 City Property Tax $599,500 $9.9803 $5,983 Dollar Increase in Property Tax Percent Increase in Property Tax $168.58 2.90% -76- e STREET CONSTRUCTION RELATED IMPROVEMENTS - OVERVIEW STREET CONSTRUCTION: Fiscal Year 2007 Engineering/Public Works: Annual Street Construction Program $ 3,008,375 1 Operations & Maintenance: Street Maintenance & Overlays Program $ 2,823,399 TOTAL - STREET CONSTUCTION IMPROVEMENTS: $ 5,831,774 ANNUAL AVERAGE: 1995 - 2011 Average Engineering/Public Works: Fiscal Year 1995 - (Annual Average) $ 4,978,594 e Operations & Maintenance: Fiscal Year 1995 - (Annual Average) $ 2,145,465 TOTAL - AVERAGE ANNUAL - STREET IMPROVEMENTS: $ 7,124,059 HISTORICAL AVERAGE: 1990 - 1994 Average Engineering/Public Works & Operations & Maintenance: Historical Five-Year Average - Street Improvements $ 2,100,000 1. Budget number does not include Iowa Highway 32 (SW Arterial), Traffic Signalization Improvements, Fiber Optic Improvements, Sidewalk or Miscellaneous Improvements. . -77- PERSONNEL COMPLEMENT --FULL-TIME 1981-2007 DEPARTMENTI 1981 26-YEAR HIGH 26-YEAR LOW 2007 DIVISION NUMBER YEAR NUMBER YEAR NUMBER NUMBER NOTES Police Deoartment -Increased Comrn. Policing 90 2007* 100 1985-1990 82 100 Unit by 1 Corporal Emeroencv Comm Part of Police & Fire Depts. 0 2006'-2007 11 1985-1991 8 11 in 1981. 'PTto FT Fire Deoartment 94 1981 94 1988-1990 88.5 90 1981; 1986 1982-1985; *Human Relations Spec. 1990-1997; 1988-1989; added with retirement of PT Human Riahts 3 2006'-2007 3 1998-2005 2 3 City Solicitor Buildina Safetv 12 1981 12 1985-1988 6 7 Included School Nursing Health Services 9.5 1981 9.5 1989-1990 4 5 Program in 1981 Park Division 27.2 1981 27.2 1996-2001 20.92 21.92 Chgd to private mgmt Civic Center 13.75 1981 13.75 2007 0.15 0.15 7/1/04. Empl to new firm. Recreation Division 13 1981 13 1991. 2007* 7.93 7.93 'Golf- FT to PT Librarv 20 1981 20 1989 14 18 Airport 8 2003' 14 1983-1994 7 13.23 .Security Personnel - LEO 2001-2002; Full time vacancy filled with Transit 44 1981-1982 44 2004-2005 7 8 part time personnel 1983; Enoineerino 22 2006'-2007 25 1985-1987 18 25 *Adds Project Manager Water Department 32 1981-1982 32 1999-2007 23 23 Water Pollution Cntrl 37 1981-1982 37 2002-2007 18 18 Public Works 1 1990-1991 2 1993-2001 0 0 Public Works 89 1981 89 1990 73 87 Parkina Division 9.8 2002-2003 11.5 1985 7.5 84th Street Ramp Opened Community/Economic Community Davel. moved to Development 7 1981 7 2003-2007 3 3 Housing Lead Paint GrantlComm Housina Services 12.5 2005-2006 21 1984-1985 10.5 20.25 Dav! positions moved Plannino Services 4 2006'-2007 8 1985-1987 2.5 8 OPT Asst Pianner to FT 1981-1982; 2 Positions from other dept 2003-2004; & 1 eliminated in 2004;adds Citv Manaae(s Office 11 2006-2007 11 1993 7.6 11 GIS Coor. 2005 Citv Clerk's Office 3 1981-2007 3 1981-2007 3 3 *Meter Reading Outsourced IF-T Position Changed to p. Finance Deoartment 20 1981-1989 20 1997'-2007 14 14 T in 2004 'Asst City Attorney added with retirement of PT City Leaal Deoartment 2 2006'-2007 3 1986 1 3 Solicitor 1985-1991 ; Information SelVices 2.5 1998-2007 6 1981 2.5 6 Graphic Arts Position Moved Cable TV 0 1991; 1993 4 1981 0 2 to City Mgrs Office "Outsourced (brought back in FY 2006 with PT City Hall Maintenance 1 1981-1982 1 1983-2001' 0 o employees) , , 588.25 1981 , 588.25 1989 495.8 516.48 12% Reduction 1981.2007 -78- . e . .. .. c C II II E E II '1::';, l'l E a. 0 .!: c.> >> II III ~ II ~.2 ::I l'l a. 1:1' E E ::I E W .g ::I II QUlE oij: ~ G):: .. E ::I .- II I&. c.> _.... 11.0 Eo ON U >- 'ii I&. C C ... o III l!! Cll II ... 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OM"'" ~ 000 C!C!q NCDN 0000 C!C!aa Or---OM N ~ 0000 0000 ..oNcciN ~ 00 0"< ....:~ ~ 00000 oo~C!~ McciNCDN ~ 000000 C!C!C!OOO Or---(J)MtON N ~ 00 00 cciM C o -;;; -;; Ql (5 (ij o C ~ :c ~Q)QJCOcc O~.sQl.1::.Qu en-roEQJen , -0:; 0 o.t:: Cf'J.S: c: Cl en QJ eo c (5 QJ ~:co g-B>Cf'J roQ.)Q)ocot-e> ::;;: U "- E Ql.!: ~~~ ~.E:g~ UUL.L...J-Suca co .... cQ ~ It> ... ~ cO ~ It> It> ~ ~ N It> o CO .,; ~ It> ... ... M N It> o It> cO ~ It> o o cQ ~ It> c 'Iii ::;;: X Ql C C <( OJ - o I- e . REVENUE SUMMARIES . -83- . ~ " <.> E C .~ 0 .,. " E " '" 0 ~ '0 Ll C is Q; ~ 0> 0 (; .E " ~ .,. C C s: Q; ~ <.> 0 i'l C ." - " " m '" Q; " is m Ll ~ t .\1 C C <.> E' .,. " <.> m 0 :c .", m '5 '" .~ " C ~ b s .0 g- O> C C (5 i!' E m ro " G ::J <( "- w u: "- " ,:: "- '" El E . . "- u: w D . . . III . II . D II "iIi<ft. Coo m . ~N (;'. >-~ ~~g;~. ~ 0 . ~t)"-- W . W 0:: <( I C/) >- I- w<-? ::::>~ 01- ::::>~ lllo:: ::::>w OCl.. LL~ OCl.. >-LL 1-0 -2 ()O I- ::> aJ 0:: I- C/) o . =85- C o :~ eft. 0--: ~<O ro "- ! C o :~ (i) i5~ ~* g ~ u..... <'>N .~..-- "S: ~ (3 " '" -~ ~<ft. ~<O :3tri ~ .~~ ~<llj?. C . "6:lN C W \ ~ " <.> .~ " "'"" 'ON "N ~ m '" <.> '5 "- i'l"" co mN c" u: ~ ~ -s: ~ _S .....- ~Q =:; j:Q bO -13 J. ~ "5 ~ ! ~ = ~ . . . FISCAL YEAR 2007 RECOMMENDED BUDGET NET OPERATING BUDGET BY DEPARTMENT Represents Department's Net Budgets in Funds with Tax Levies General Fund, Transit Fund, Trust and Agengy Fund, Tort Liability Fund and Debt Fund (no debt ievy in FY 2006 or 2007) PERCENT OF FY 2006 NET FY 2007 FY 2007 MISC. FY 2007 NET NET OPERATING TAXABLE REVENUE OPERATING OPERATING DEPARTMENT/DIVISION BUDGET FUNDS GENERATED BUDGET BUDGET Police 8,666,555 10,236,092 975,904 9,260,188 27.92% Emergency Comm. Center 575,924 887,642 296,264 591,378 1.78% Fire 7,047,865 8,190,784 903,613 7,287,171 21.97% Emergency Management 34,680 43,444 43,444 0.13% Building Services 149,842 995,723 794,200 201,523 0.61% Subtotal 16,474,866 20,353,685 2,969,981 17,383,704 52.41% Human Rights 236,951 334,567 53,150 281,417 0.85% Health Services 261,050 531,786 229,730 302,056 0.91% Park Division 1,918,585 2,303,036 282,173 2,020,863 6.09% Civic Center 777,675 701,190 701,190 2.11% Grand River Center 693,055 435,006 22,860 412,146 1.24% Recreation 531,298 1,972,910 1,413,592 559,318 1.69% Library 2,099,733 2,311,082 108,878 2,202,204 6.64% Subtotal 6,518,347 8,589,577 2,110,383 6,479,194 19.54% Airport 743,485 3,867,935 2,944,021 923,914 2.79% Transit 710,543 2,145,999 1,222,615 923,384 2.78% Public Works 1,183,021 1,542,514 283,855 1,258,659 3.80% Engineering 874,537 996,917 102,966 893,951 2.70% Economic Development 84,373 120,764 28,958 91,806 0.28% Housing & Comm. Dev. 62,544 182,045 117,024 65,021 0.20% Purchase of Services 707,408 734,519 734,519 2.21% Subtotal 4,365,911 9,590,693 4,699,439 4,891,254 14.75% Planning 449,035 581,324 83,889 497,435 1.50% City Council 128,109 158,957 158,957 0.48% City Manager's Office 523,089 582,106 582,106 1.76% City Manager - Budget 121,473 132,777 132,777 0.40% City Manager - Personnel 326,621 323,412 323,412 0.98% City Manager - Public Info. 127,461 65,561 65,561 0.20% City Manager - Arts & Culture 247,941 248,339 248,339 0.75% City Clerk 217,090 302,359 125,245 177,114 0.53% Finance 1,330,847 1,398,639 2,150 1,396,489 4.21% Legal 447,705 506,595 10,000 496,595 1.50% Information Services 317,043 597,343 264,487 332,856 1.00% Subtotal 4,236,414 4,897,412 485,771 4,411,641 13.30% Total Without Debt 31,595,538 43,431,367 10,265,574 33,165,793 100.00% Debt Service 0 0 0 0 0.00% Total With Debt 31,595,538 43,431,367 10,265,574 33,165,793 -87- DISTRIBUTION OF THE CITY PORTION OF YOUR PROPERTY TAX PAYMENT RESIDENTIAL PROPERTY EXAMPLE FISCAL YEAR 2007 RECOMMENDED BUDGET For a residential property, with an assessed value of $116,368 (and a taxable value of $53,525) the City portion of their Fiscal Year 2007 (July 1, 2006 - June 30, 2007) tax bill would be $485.79 with homestead tax credit. The distribution of their tax dollars to City departments and divisions would be: NET CITY OF DUBUQUE OPERATING DEBT DEPARTMENTIDIVISION EXPENSE SERVICE TOTAL There is no Police 135.64 Property Tax 135.64 Emergency Comm. Center 8.66 Supported 8.66 Fire 106.74 Debt 106.74 Emergency Management 0.64 0.64 Building Services 2.95 2.95 Subtotal 254.62 0.00 254.62 Human Rights 4.12 4.12 Health Services 4.42 4.42 Park Division 29.60 29.60 Civic Center 10.27 10.27 Grand Rever Center 6.04 6.04 Recreation 8.19 8.19 Library 32.26 32.26 Subtotal 94.90 0.00 94.90 Airport 13.53 13.53 Transit 13.53 13.53 Public Works 18.44 18.44 Engineering 13.09 13.09 Economic Development 1.34 1.34 Housing & Comm. Dev. 0.95 0.95 Purchase of Services 10.76 10.76 Subtotal 71.64 0.00 71.64 Planning 7.29 7.29 City Council 2.33 2.33 City Manage~s Office 8.53 8.53 City Manager - Budget 1.94 1.94 City Manager - Personnel 4.74 4.74 City Manager - Public Info. 0.96 0.96 City Manager - Arts & Culture 3.64 3.64 City Clerk 2.59 2.59 Finance 20.45 20.45 Legal 7.27 7.27 Information Services 4.88 4.88 Subtotal 64.62 0.00 64.62 GRAND TOTAL 485.79 0.00 485.79 -88- . '" "0 e ~* <ij<Ol ~V '" "N i'l N C. "0 . 5::R :8 .~ " '" '" ~ "- "- 0 _ "0 " l'l Q)~~ e '" '" '" a:: e W _ <0..... ~ "0 ~ "0 "'.!!! ro N "- e e (9 U5 a '" ~ ~ ro 0 e '" " "- f- ee ~QJ 0 ~# ____J ~ " 2 "5 . ~ ~ W "0 o " '" :EC") :5 " .!!! 0 . 0. '" ~ ::> ~N I "- '" ...J <.? 0 () is ::>~ . . . 0 ... . CO ...J III '" <( '" :( " "0 ~ ~~ e ~* 0... I-~ ~ -v ~;: ro . <( i ~<'> 0 ~ ,,~ ...J "0 () iii* 0 " '" "- "0 ~oo e t-- o~ '" 0:::>- ~'" 0 "0 rl.L.N 5* J u.W m?ft. I .$<0 0 " :2<<> ro ~ N ,- . ee v C/)O ~oo U5 '" or--: w~ ::>~ <Ii >- l'l <9 l_ ..... 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'" J!l ." ~~C"! e ~ ",," S~ ga::N 00 0 FISCAL YEAR 2007 RECOMMENDED BUDGET BY SOURCE OF INCOME .enue Type Total Adoptea Total Recommended Recommended 2007 Recommended 2007 2006 Revenues 2007 Budget Operating Budaet Capital Budget Dollars Dollars I Percent Dollars I Percent Dollars I Percent Utilities Water 4,711,245 5,141,918 4.72% 4,071,058 5.38% 1,070,860 3.22% Sewer 5,419,694 5,928,784 5.44% 4,127,604 5.45% 1,801,180 5.42% Solid Waste 2,386,755 2,699,991 2.48% 2,437,641 3.22% 262,350 0.79% Parking 2,115,060 1,887,491 1.73% 1,789,991 2.36% 97,500 0.29% Stormwater 1,157,453 1,909,236 1.75% 1,057,168 1.40% 852,068 2.57% Landfill 2,076,146 2,213,780 2.03% 2,213,780 2.92% 0.00% Transit 343,847 426,726 0.39% 426,726 0.56% 0.00% Subtotal 18,210,200 20,207,926 18.55% 16,123,968 21.30% 4,083,958 12.30% Federal Funds Community Development 1,415,598 1,927,381 1.77% 1,106,146 1.46% 821,235 2.47% HUO Fair Housing 56,600 51,300 0.05% 51,300 0.07% 0.00% HUO Lead Grant 206,206 0.19% 206,206 0.27% 0.00% Federally Assisted Housing 5,968,753 4,375,453 4.02% 4,375,453 5.78% 0.00% Federal Grants-Law Enforcement 92,640 79,583 0.07% 79,583 0.11% 0.00% Federal Transportation Bill 2005 3,500,000 3.21% 0.00% 3,500,000 10.54% Federal Transit Authority 1,475,429 737,667 0.68% 583,287 0.77% 154,380 0.46% Passenger Facility Charge 65,382 0.06% 0.00% 65,382 0.20% FederallSTEA Funds 1,000,000 0.92% 0.00% 1,000,000 3.01% Federal Aviation Admin. 696,250 2,639,708 2.42% 0.00% 2,639,708 7.95% Subtotal 9,705,270 14,582,680 13.39% 6,401,975 8.46% 8,180,705 24.63% State Funds State HOME Grant Program 49,906 0.00% 0.00% 0.00% _te Health Grant/Lead Grant 19,730 19,730 0.02% 19,730 0.03% 0.00% te Police Program Grants 12,000 97,000 0.09% 97,000 0.13% 0.00% tate Library I Historical Grants 14,500 13,453 0.01% 13,453 0.02% 0.00% State RISE Grants 11,300,000 1,125,000 1.03% 0.00% 1,125,000 3.39% State Transit 291,000 250,402 0.23% 212,602 0.28% 37,800 0.11% lOOT/Highway Maintenance & Trails Grants 8,084 437,284 0.40% 8,084 0.01% 429,200 1.29% Road Use Tax 4,911,367 4,810,269 4.42% 4,117,896 5.44% 692,373 2.08% Mobile Home Tax 28,643 29,998 0.03% 29,998 0.04% 0.00% Subtotal 16,635,230 6,783,136 6.23% 4,498,763 5.94% 2,264,373 6.88% Local Taxes Property Tax 16,192,215 17,169,640 15.76% 17,169,640 22.68% 0.00% Hotel/Motel Tax 1,570,602 1,570,602 1.44% 1,570,602 2.07% 0.00% Military Service 17,073 16,584 0.02% 16,564 0.02% 0.00% Monies & Credits 23,921 23,024 0.02% 23,024 0.03% 0.00% Ag Land Tax 6,356 5,531 0.01% 5,531 0.01% 0.00% TIF Increment Property Tax 3,052,062 3,923,766 3.60% 3,923,766 5.18% 0.00% ORA-Paramutual Tax 43,861 24,807 0.02% 24,807 0.03% 0.00% Diamond Jo-Tax on Bets 278,983 270,300 0.25% 270,300 0.36% 0.00% Sales Tax-50% and 20% 5,497,737 5,482,637 5.03% 3,926,955 5.19% 1,555,682 4.68% Sales Tax-30% 2,366,173 2,356,173 2.16% 0.00% 2,356,173 7.09% Subtotal 29,048,983 30,843,064 28.32% 26,931,209 35.58% 3,911,855 11.78% Operating Receipts Airport 2,375,510 2,944,021 2.70% 2,944,021 3.89% 0.00% Ambulance 770,000 830,745 0.76% 830,745 1.10% 0.00% Animal licenses 108,400 106,900 0.10% 106,900 0.14% 0.00% Business license/Permits 188,321 315,216 0.29% 315,216 0.42% 0.00% Cable TV 573,235 823,198 0.76% 609,925 0.81% 213,273 0.64% .onference Center Lease 22,860 22,860 0.02% 22,860 0.03% 0.00% ounty Participation Camm. Center 278,873 295,649 0.27% 295,849 0.39% 0.00% County Payment 149,886 136,011 0.12% 126,011 0.17% 10,000 0.03% Diamond Jo-Admisslons 571,836 489,357 0.45% 489,357 0.65% 0.00% ORA-Equity Distribution (Used for CIP only) 3,860,557 5,167,017 4.74% 0.00% 5,167,017 15.56% -91- FISCAL YEAR 2007 RECOMMENDED BUDGET BY SOURCE OF INCOME Total Adopted Total Recommended Recommended 2007 Recommended 2007 2006 Revenues 2007 Budget Operatina Budget Capital Budaet , Revenue Type Dollars Dollars I Percent Dollars I Percent Dollars I Percent DRA-Gaming used for America's River Project & Parking Debt Abatement 802,724 701,393 0.64% 701,393 0.93% 0.00% ORA-Gaming Revenues (Lease & Slots) 9,078,621 6,681,447 6.13% 5,543,665 7.32% 1,137,782 3.43% DRA-Police Overtime - Security 244,847 260,365 0.24% 260,365 0.34% 0.00% Dubuque Casino Hotel & Diamond Jo Lease 62,500 70,000 0.06% 70,000 0.09% 0.00% Engineering Division 133,231 102,966 0.09% 102,966 0.14% 0.00% Federal Building Leases 0 150,500 0.14% 150,500 0.20% 0.00% Fire Training I Confined Space SaNice 13,750 13,750 0.01% 13,750 0.02% 0.00% Golf 705,619 760,358 0.70% 751,358 0.99% 9,000 0.03% Information Services Recharges 244,465 264,487 0.24% 264,487 0.35% 0.00% Inspection (Building/Health/Fire) 638,520 669,752 0.61% 669,752 0.88% 0.00% Interest Eamin9s-Tax Funds 450,500 592,000 0.54% 592,000 0.78% 0.00% Iowa District Court Fines 180,000 160,000 0.15% 160,000 0.21% 0.00% Library Receipts 80,335 95,425 0.09% 95,425 0.13% 0.00% Misc./Admin Overhead Charges 165,478 33,000 0.03% 33,000 0.04% 0.00% Public Works including Riverfront Leases 234,933 258,885 0.24% 258,885 0.34% 0.00% Park 223,572 260,656 0.24% 260,656 0.34% 0.00% Police 305,633 290,218 0.27% 290,218 0.38% 0.00% Recreation 614,636 661,734 0.61% 661,734 0.87% 0.00% Rental Housing 112,824 117,024 0.11% 117,024 0.15% 0.00% Utility Franchise Fees 1,232,000 1 ,481 ,525 1.36% 1,481,525 1.96% 0.00% Zoning 97,956 75,639 0.07% 75,639 0.10% 0.00% Subtotal 24,521,622 24,832,298 22.80% 18,295,226 24,17% 6,537,072 19,68% Cash Balances Tax Funds 222,049 530,969 0.49% 223,550 0.30% 307,419 0,93% i Non-Enterprise Constr.& Oper. Funds 1,637,347 853,050 0.78% 2,618 0.00% 850,432 2.56% Subtotal 1,859,396 1,384,019 1,27% 226,168 0,30% 1,157,851 3.49% Land Sales-Industrial Parks 114,750 179,200 0.16% 0,00% 179,200 0.54% Farm Land Rents 28,958 0,03% 28,958 0.04% 0.00% G.O. Bonds (Water Abated Debt) 400,000 0,37% 0,00% 400,000 1.20% G.O, Bonds (Sewer Abated Debt) 2,480,000 2.28% 0,00% 2,480,000 7.47% G.O, Bonds (Storm Sewer Abated Debt) 2,900,000 1,900,000 1.74% 0.00% 1,900,000 5.72% G.O, Bonds (Downtown TIF & DRA Abated Debt) 1,100,000 0 0,00% 0,00% 0,00% G,O, Bonds (Industrial Pk West TIF Abated) 7,176,000 560,000 0.51% 0.00% 560,000 1.69% Loan Repayments 0 0 0,00% 0,00% 0.00% Water to General Fd 59,570 59,571 0.05% 0.00% 59,571 0,18% Internal Mains-Revolving Loan Fund 63,400 0,06% 0.00% 63,400 0,19% UDAG 281,634 1,043,212 0,96% 293,212 0.39% 750,000 2,26% Econ, Dav-Loan Pool and ED 158,755 174,297 0,16% 0.00% 174,297 0,52% Rehab/RRP 594,000 69,882 0.06% 24,882 0,03% 45,000 0.14% Special Assessments 955,734 394,800 0,36% 0.00% 394,800 1.19% Private Funding 48,707 103,517 0.10% 53,517 0,07% 50,000 0,15% Subtotal 13,389,150 7,456,837 6.85% 400,569 0.53% 7,056,268 21,24% Budget Less Service Funds. 113,369,851 106,089,960 97.40% 72,877,878 96.27% 33,212,082 99.99% Service Funds 2,369,795 2,826,449 2,60% 2,823,949 3.73% 2,500 0.01% Total Budget 115,739,646 108,916,409 100.00% 75,701,827 100.00% 33,214,582 100.00% ,- '- , -92- FISCAL YEAR 2007 RECOMMENDED BUDGET BY SOURCE OF INCOME .enue Type Total Adopted Total Recommended Recommended 2007 Recommended 2007 2006 Revenues 2007 Budoet Operatino Budget Capital Budget Dollars Dollars I Percent Dollars I Percent Dollars I Percent Utilities Water 4,711,245 5,141,918 4.72% 4,071,058 5.38% 1,070,880 3.22% Sewer 5,419,694 5,928,784 5.44% 4,127,604 5.45% 1,801,180 5.42% Solid Waste 2,386,755 2,699,991 2.48% 2,437,641 3.22% 262,350 0.79% Parking 2,115,060 1,887,491 1.73% 1,789,991 2.36% 97,500 0.29% Stormwater 1,157,453 1,909,236 1.75% 1,057,168 1.40% 852,068 2.57% Landfill 2,076,146 2,213,780 2.03% 2,213,780 2.92% 0.00% Transit 343,847 426,726 0.39% 426,726 0.56% 0.00% Subtotal 18,210,200 20,207,926 18.55% 16,123,968 21.30% 4,083,958 12.30% Federal Funds Community Development 1,415,598 1,927,381 1.77% 1,106,146 1.46% 821,235 2.47% HUD Fair Housing 56,600 51,300 0.05% 51,300 0.07% 0.00% HUD Lead Grant 206,206 0.19% 206,206 0.27% 0.00% Federally Assisted Housing 5,968,753 4,375,453 4.02% 4,375,453 5.78% 0.00% Federal Grants-Law Enforcement 92,640 79,583 0.07% 79,583 0.11% 0.00% Federal Transportation Bill 2005 3,500,000 3.21% 0.00% 3,500,000 10.54% Federal Transit Authority 1,475,429 737,667 0.68% 583,287 0.77% 154,380 0.46% Passenger Facility Charge 65,382 0.06% 0.00% 65,382 0.20% FederallSTEA Funds 1,000,000 0.92% 0.00% 1,000,000 3.01% Federal Aviation Admin. 696,250 2,639,708 2.42% 0.00% 2,639,708 7.95% Subtotal 9,705,270 14,582,680 13.39% 6,401,975 8.46% 8,180,705 24.63% State Funds State HOME Grant Program 49,906 0.00% 0.00% 0.00% <<te Heaith Grant/Lead Grant 19,730 19,730 0.02% 19,730 0.03% 0.00% ate Police Program Grants 12,000 97,000 0.09% 97,000 0.13% 0.00% tate Library / Historical Grants 14,500 13,453 0.01% 13,453 0.02% 0.00% State RISE Grants 11,300,000 1,125,000 1.03% 0.00% 1,125,000 3.39% State Transit 291,000 250,402 0.23% 212,602 0.28% 37,800 0.11% lOOT/Highway Maintenance & Trails Grants 8,084 437,284 0.40% 8,084 0.01% 429,200 1.29% Road Use Tax 4,911,367 4,810,269 4.42% 4,117,896 5.44% 692,373 2.08% Mobile Home Tax 28,643 29,998 0.03% 29,998 0.04% 0.00% Subtotal 16,635,230 6,783,136 6.23% 4,498,763 5.94% 2,284,373 6.88% Local Taxes Properly Tax 16,192,215 17,169,640 15.76% 17,169,840 22.68% 0.00% Hotel/Motel Tax 1,570,602 1,570,602 1.44% 1,570,602 2.07% 0.00% Military Service 17,073 16,584 0.02% 16,584 0.02% 0.00% Monies & Credits 23,921 23,024 0.02% 23,024 0.03% 0.00% Ag Land Tax 6,356 5,531 0.01% 5,531 0.01% 0.00% TIF Increment Properly Tax 3,052,062 3,923,766 3.60% 3,923,766 5.18% 0.00% DRA-Paramutual Tax 43,861 24,807 0.02% 24,807 0.03% 0.00% Diamond Jo-Tax on Bets 278,983 270,300 0.25% 270,300 0.36% 0.00% Sales T ax~50% and 20% 5,497,737 5,482,637 5.03% 3,926,955 5.19% 1,555,682 4.68% Sales T ax-30% 2,366,173 2,356,173 2.16% 0.00% 2,356,173 7.09% Subtotal 29,048,983 30,843,064 28.32% 26,931,209 35.58% 3,911,855 11.78% Operating Receipts Airport 2,375,510 2,944,021 2.70% 2,944,021 3.89% 0.00% Ambulance 770,000 830,745 0.76% 830,745 1.10% 0.00% Animal Licenses 108,400 106,900 0.10% 106,900 0.14% 0.00% Business License/Permits 188,321 315,216 0.29% 315,216 0.42% 0.00% Cable TV 573,235 823,198 0.76% 609,925 0.81% 213,273 0.64% .onference Center Lease 22,860 22,860 0.02% 22,860 0.03% 0.00% ounty Participation Comm. Center 278,873 295,849 0.27% 295,849 0.39% 0.00% County Payment 149,886 136,011 0.12% 126,011 0.17% 10,000 0.03% Diamond Jo-Admissions 571,836 489,357 0.45% 489,357 0.65% 0.00% DRA-Equity Distribution (Used for CiP only) 3,860,557 5,167,017 4.74% 0.00% 5,167,017 15.56% -91- FISCAL YEAR 2007 RECOMMENDED BUDGET BY SOURCE OF INCOME Total Adoptea Total Recommended Recommended 2007 Recommended 2007 2006 Revenues 2007 Budaet Operatina Budaet Capital Budaet Revenue Type Dollars Dollars I Percent Dollars T Percent Dollars I Percent ORA-Gaming used for America's River Project & Parking Debt Abatement 802,724 701,393 0.64% 701,393 0.93% 0.00% DRA-Gaming Revenues (Lease & Slots) 9,078,621 6,681,447 6.13% 5,543,665 7.32% 1,137,782 3.43% DRA-Police Overtime - Security 244,847 260,365 0.24% 260,365 0.34% 0.00% Dubuque Casino Hotel & Diamond Jo Lease 62,500 70,000 0.06% 70,000 0.09% 0.00% Engineering Division 133,231 102,966 O.Og% 102,966 0.14% 0.00% Federal Building Leases 0 150,500 0.14% 150,500 0.20% 0.00% Fire Training / Confined Space Service 13,750 13,750 0.01% 13,750 0.02% 0.00% Golf 705,619 760,358 0.70% 751,358 0.99% 9,000 0.03% I nformation Services Recharges 244,465 264,487 0.24% 264,487 0.35% 0.00% Inspection (Building/Health/Fire) 638,520 669,752 0.61% 669,752 0.88% 0.00% Interest Earnings-Tax Funds 450,500 592,000 0.54% 592,000 0.78% 0.00% Iowa District Court Fines 180,000 160,000 0.15% 160,000 0.21% 0.00% Library Receipts 80,335 95,425 0.09% 95,425 0.13% 0.00% Misc.lAdmin Overhead Charges 165,478 33,000 0.03% 33,000 0.04% 0.00% Public Works including Riverfront Leases 234,933 258,885 0.24% 258,885 0.34% 0.00% Park 223,572 260,656 0.24% 260,656 0.34% 0.00% Police 305,633 290,218 0.27% 290,218 0.38% 0.00% Recreation 614,636 661,734 0.61% 661,734 0.87% 0.00% Rental Housing 112,824 117,024 0.11% 117,024 0.15% 0.00% Utility Franchise Fees 1,232,000 1,481,525 1.36% 1,481,525 1.96% 0.00% Zoning 97,956 75,639 0.07% 75,639 0.10% 0.00% Subtotal 24,521,622 24,832,298 22.80% 18,295,226 24.17% 6,537,072 19.68% Cash Balances Tax Funds 222,049 530,969 0.49% 223,550 0.30% 307,419 0.93% Non-Enterprise Constr.& Oper. Funds 1,637,347 853,050 0.78% 2,618 0.00% 850,432 2.56% Subtotal 1,859,396 1,384,019 1.27% 226,168 0.30% 1,157,851 3.49% Land Saies--Industrial Parks 114,750 179,200 0.16% 0.00% 179,200 0.54% F anm Land Rents 28,958 0.03% 28,958 0.04% 0.00% G.O. Bonds (Water Abated Debt) 400,000 0.37% 0.00% 400,000 1.20% G.O. Bonds (Sewer Abated Debt) 2,480,000 2.28% 0.00% 2,480,000 7.47% G.O. Bonds (Storm Sewer Abated Debt) 2,900,000 1,900,000 1.74% 0.00% 1,900,000 5.72% G.O. Bonds (Downtown TIF & DRA Abated Debt) 1,100,000 0 0.00% 0.00% 0.00% G.O. Bonds (Industrial Pk West TIF Abated) 7,176,000 560,000 0.51% 0.00% 560,000 1.69% Loan Repayments 0 0 0.00% 0.00% 0.00% Water to General Fd 59,570 59,571 0.05% 0.00% 59,571 0.18% Internal Mains-Revolving Loan Fund 63,400 0.06% 0.00% 63,400 0.19% UDAG 281,634 1,043,212 0.96% 293,212 0.39% 750,000 2.26% Econ. Dev-Loan Pool and ED 158,755 174,297 0.16% 0.00% 174,297 0.52% Rehab/RRP 594,000 69,882 0.06% 24,882 0.03% 45,000 0.14% Special Assessments 955,734 394,800 0.36% 0.00% 394,800 1.19% Private Funding 48,707 103,517 0.10% 53,517 0.07% 50,000 0.15% Subtotal 13,389,150 7,456,837 6.85% 400,569 0.53% 7,056,268 21.24% Budget Less Service Funds 113,369,851 106,089,960 97.40% 72,877,878 96.27% 33,212,082 99.99% Service Funds 2,369,795 2,826,449 2.60% 2,823,949 3.73% 2,500 0.01% Total Budget 115,739,646 108,916,409 100.00% 75,701,827 100.00% 33,214,582 100.00% -92- . . EXPENDITURE SUMMARIES . -93- '" . .>< 0 ~~ ! 0'" 06 '" -- " I- :0 - ., ::> ..c.~.~ ::R W 0- ~g~o .. ., (f) ., a <.9 I (f) 0 I06Q ,., I '" ::J a; ., - ,., '" -u 06 a. ce '" a; .>< 0-'" (f)", ro 0 en c~> a3~ -l .!::!~~ a>m::R i s ~ I/) ~ .Q 'c Q) E I/) :0 2~<o (f) (l)l1>m:JOmcm <( ::> - 0 -~ -~ E'~ ~ ~ E c W ID.~ I- 0- ::> ., :0 :0 ro ~ ~ u E 0 C > I/) Uc:: ::> ::> Q) Q) :J Q) 0 U Q) 0 :J 0- 0- I(f)UC::UWl?l?lD 0... \06 I II II . 0 II I!I iii ,.,> <( '" \ 'E ~ '" '" U '" ~~ '" ., ::> _ 0 ~ .!: >. co ----.. EeCD 0 E 8 I- s:~ I'-- ~.....C"") oW I w 0" ~ 0 lD C U j>;> __ N l- e> .2? :0 0 - ., Z 0 ~cf! ::> N ~ E 0- m wccfl. I ::J 00 CD e~", W 'u f/) ... >- ., ., cc :.=N l? 15 0... .0 o ., Gt u... 0 ::> en.!::! ::R - l? (j) 0- r06~~ CICI w ~ .c ., 0 (j) 0 ~(I) ... Z ., .. >- W I 06Q I ~ w ~ Zo ~~iii"'lD ::> ., 0 00 '" t; "'I ::> ., ~~ Uc:: '" i .>< c:' ~ 0 W ...J 0 I- S:cfl. \0 E j>;> I ;:: W W .2? 0"' m l E -- ~ -u I- r 06 - 0 <.9 ~cfl. :0 0 '" 0 >.>e;:::: J ::> (f) ., ~ -.,~ f"\ 0- .!::! ::R .. S I- ., 'c 0..- 0 06 ~~ ~ a. ::> ) I'- ,., C E ::J .c ., E f- ~U) 0 0 "'''' l" ., E - ce 0 ",0 E 0 ~ ., I N .,0 wccfl.u I I e'" e ~ "' <.9 ~ >- -in ., ., I..L. ::> l? 15 Z e lD l? 06 0 I- ~~cfl. I --- :J ~ ..- <( ~O""" ::> ., a:: Uc:: W 0... 1 0 I'-- ., 06 a. ,.,> J 0 ~::RJ - ., 0 ( 'c 0 cf!. '" 0 ::> - '" N .,r- E e ~ eN E 8 I >- -in C ow ::> U u... lD - ., ~ E . Q)c;::R e ~ 0 .,.,CD l? 15 l? -95- FISCAL YEAR 2007 RECOMMENDED BUDGET BY DEPARTMENT AND STATE PROGRAM . Total FY 2006 Total FY 2007 FY 2007 Recommended FY 2007 Recommended Budget Recommended Budget Operatin!! Bud!!et Capital Budget Department Dollars Dollars I Percent Dollars I Percent Dollars I Percent Public Safety Police 9,671,102 10,343,919 9.50% 10,276,809 13.58% 67,110 0.20% Emergency Comm. Center 858,647 887,642 0.81% 887,642 1.17% 0.00% Fire 8,116,764 9,561,907 8.78% 8,227,007 10.87% 1,334,900 4.02% Disaster Services 34,680 43,444 0.04% 43,444 0.06% 0.00% Health Services - Animal Control 186,935 189,601 0.17% 189,601 0.25% 0.00% Public Works - Flood Control 116,768 119,030 0.11% 119,030 0.16% 0.00% Building Services - Inspections 606,559 698,785 0.64% 698,785 0.92% 0.00% Total 19,591,455 21,844,328 20.06% 20,442,318 27.00% 1,402,010 4.22% Public Works Airport 4,151,995 6,874,655 6.31% 3,867,935 5.11% 3,006,720 9.05% Public Works 5,735,083 5,919,024 5.43% 5,525,824 7.30% 393,200 1.18% Engineering 17:865,142 12,818,740 11.77% 2,050,987 2.71% 10,767,753 32.42% Total 27,752,220 25,612,419 23.52% 11,444,746 15.12% 14,167,673 42.65% Debt Service 1869,795 11,091,514\ 11,091,514) Total without Debt Service 26,882,425 24,520,905 10,353,232 14,167,673 Health & Social Services Human Rights 296,901 336,567 0.31% 336,567 0.44% 0.00% Health Services 331,304 369,268 0.34% 369,268 0.49% 0.00% Purchase of Services 133,688 146,263 0.13% 146,263 0.19% 0.00% .Total 761,893 852,098 0.78% 852,098 1.13% 0 0.00% Culture & Recreation Parks 3,822,824 3,715,586 3.41% 2,305,036 3.04% 1,410,550 4.25% Civic Center 777,675 918,190 0.84% 701,190 0.93% 217,000 0.65% Conference Center 715,915 435,006 0.40% 435,006 0.57% 0.00% Recreation 2,042,176 2,241,519 2.06% 2,094,519 2.77% 147,000 0.44% Library 2,341,918 2,542,736 2.33% 2,311,082 3.05% 231,654 0.70% City Manager-Arts & Cultural Aft. 247,941 248,339 0.23% 248,339 0.33% 0.00% Total 9,948,449 10,101,376 9.27% 8,095,172 10.69% 2,006,204 6.04% Comm, & Econ. Dev. Economic Development 11,483,708 3,909,929 3.59% 2,829,890 3.74% 1,080,039 3.25% Housing & Comm. Development 7,889,888 6,147,103 5.64% 5,368,103 7.09% 779,000 2.35% Planning Services 847,499 869,315 0.80% 674,315 0.89% 195,000 0.59% City Managers-Neighborhood Dev!. 373,521 129,074 0.12% 101,326 0.13% 27,748 0.08% Purchase of Services 828,977 884,402 0.81% 884,402 1.17% 0.00% Total 21,423,593 11,939,823 10.96% 9,858,036 13.02% 2,081,787 6.27% Debt Service (1,523,035' (1,579,664) 11,579,664) -2.09% Total without Debt Service 19,900,558 10,360,159 8,278,372 2,081,787 General Government Bldg. Servo - City Hall & Bldg Main!. 451,357 723,198 0.66% 303,198 0.40% 420,000 1.26% City Council 128,109 158,957 0.15% 158,957 0.21% 0.00% City Manager 1,491,937 1,423,778 1.31% 1,284,278 1.70% 139,500 0.42% City Clerk 345,881 302,359 0.28% 302,359 0.40% 0.00% Finance 1,336,322 1,398,639 1.28% 1,398,639 1.85% 0.00% Cable TV 261,983 233,963 0.21% 233,963 0.31% 0.00% Legal 457,705 506,595 0.47% 506,595 0.67% 0.00% Information Sarv 1,019,194 1,051,777 0.97% 682,027 0.90% 369,750 1.11% Total 5,492,488 5,799,266 5.32% 4,870,016 6.43% 929,250 2.80% -97- FISCAL YEAR 2007 RECOMMENDED BUDGET BY DEPARTMENT AND STATE PROGRAM Total FY 2006 Total FY 2007 FY 2007 Recommended FY 2007 Recommended Budget Recommended Budget Operatinll Budaet Capital Budaet Department Dollars Dollars I Percent Dollars I Percent Dollars I Percent Business Type Water 4,255,009 5,077,349 4.66% 3,606,489 4.76% 1,470,860 4.43% Water Pollution Control 3,392,711 3,746,739 3.44% 3,282,117 4.34% 464,622 1.40% Parking Division 3,584,528 2,816,532 2.59% 2,159,032 2.85% 657,500 1.98% Transit 2,963,819 2,331,999 2.14% 2,145,999 2.83% 186,000 0.56% Civic Ctr & Parks-America's River 2,554,000 1,283,000 1.18% 0.00% 1,283,000 3.86% Public Works- Solid Waste & Landfill 4,196,400 4,647,708 4.27% 4,389,358 5.80% 258,350 0.78% Public Works- Garage Service 1,200,169 1,555,921 1.43% 1,555,921 2.06% 0.00% Public Works- SewerlStormwater 669,328 629,014 0.58% 449,014 0.59% 180,000 0.54% Engineering - SewerlStormwater 5,988,487 9,139,880 8.39% 1,019,054 1.35% 8,120,826 24.45% Engineering - Service Fund 1,168,626 1,265,404 1.16% 1,265,404 1.67% 0.00% Engineering - America's River Proj 535,000 0 0.00% 0.00% 0.00% City Manager - General Service 1,000 990 0.00% 990 0.00% 0.00% Information Serv-Garage & Refuse 23,900 6,500 0.01% 0.00% 6,500 0.02% Finance - Meter Reads/Service 236,571 266,063 0.24% 266,063 0.35% 0.00% Total with Debt 30,769,548 32,767,099 30.08% 20,139,441 26.60% 12,627,658 38.02% Debt Service (1,869,842' (2,052,265\ 12,052,265\ Total without Debt Service 28,899,706 30,714,834 18,087,176 12,627,658 TOTAL WITH DEBT 115,739,646 108,916,409 100.00% 75,701,827 100.00% 33,214,582 100.00% DEBT SERVICE 14,262,672' (4,723,443\ 14,723,443\ TOTAL WITHOUT DEBT 111476974 104192,966 70,978384 33214582 -98- . >- a:: <C :E :E =' 00 .~~ A=' =,1- ale ='z OW ILD.. 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Q) '" e- '" 0> e ::l " e e ::l <( <ii '" 0 0 Q) '" >= '" '" Q) '" 0 0 ;; '" '" '" Q) E '" '" Q) ::l Z 0 ... u en '" a.. <( Cl 0 Cl ::l s: s: '" '" en en a:: --' a.. a.. Cl <( ,:: .... '" '" w .... -108- - ~'------'----~-'~ e DISTRIBUTION OF COMMUNITY DEVELOPMENT . FUNDS . -109- e e . CITY OF DUBUQUE, IOWA FY 2007 ANNUAL ACTION PLAN FOR THE USE OF PROGRAM YEAR 2006 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS INTRODUCTION The Fiscal Year 2007 Annual Action Plan for the use of Program Year 2006 Community Development Block Grant Funds has resulted from a two-month process of public involvement and decision-making regarding the needs, priorities and proposed uses of CDBG funds in the City of Dubuque, Iowa. The following action plan represents the efforts of citizens, commissioners, public officials and staff to craft a document responsive to identified opportunities and needs in the community. RESOURCES Federal resources expected to be available to address the priority needs identified in this plan include CDBG funds. The City anticipates $1,933,971 in CDBG assistance in Fiscal Year 2007 (July 1,2006 - June 30, 2007), which includes the annual entitlement of$I,398,731, program income of $492,772 and Revolving Loan Funds of$42,465. The City of Dubuque will utilize other federal assistance programs as appropriate to meet community needs. Sources of funds include $4 million in Section 8 rental assistance payments, HOME Program funds, EDA Public Works Grant Program and SBA 504 loan program. The City continues to work with developers to access Low Income Housing Tax Credits and Historic Preservation Tax Credits in order to develop feasible housing projects. DESCRIPTION OF ACTIVITIES The City of Dubuque distinguishes between four different but complementary areas of program development in its overall CDBG program: Housing Development, Economic Development, Neighborhood and Community Development and Planning & Administration. The following description of activities sununarizes the projects to be completed in the FY 2007 Annual Action Plan with the use ofCDBG funds: -111- I- Z =.... 00 ~o u~ 0>- ..I.... III I-Z ~j liD. D.Z 00 ..1- 1111- iC~ ICII..I ~~ -Z Zz :Ie Ii :I o u .. Cl C .. .c o ~~ .- c o .. :IE <Xl "" ..."" ",<Xl v-a:i CD s' o o. e 00 00 00 NN .... , 0 o O. "" '0 o o '" mocoomCOOOOM (OONOOvOOOC"') OOMOCOr---OIt)OIO ll'ill'iMo~r-:an-ll'iMM N OOI.ONNNT"""......_ ~ 1ft .... COM 00 O'lO ((lO 01 CO 00 0 C"') ; vMOOCDONOOVOOOf") !~~~ ~~ ~~~g~~~~~! Q,> ...... 10 e IL "- ~ E c .. " '" E ii' E ~ o "- o C! 'C .. C E .. 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CL> en e IL "- C o ,., l! - .. c E 'C <( 'C C ":c g'b5 C'C C C .. .. a: .. 1l .2: .. (J) :c .. Ui 'C ffi ~ g ~ g 'g ::> .~ ca .~ .5 0: c (J).g ~ E .~ -; ~ ~g~'2'2 ,,~o:;~ ~u:~o:o: C) (3 , , , I I , , I I ~ .. ~g .- C o .. :IE ggg~~ooggggl;; OOOLOCOl"--.OOOO'- ll"ioC'.icciv....... cic:iL6ci.....~ r-...N 0 10...... 00 10(1')...... <00 CO')......N ~ - ;; E .. ~ Cl e "- - C .. E CL o .. ~ e Cl C 0; " o :J: " .. E t5 l! g'.g ~ .c "- .. ~ 0:: .. C ~ .Q -g 16 E ~ o .. :J: 13 .~ ~ I- .;:: -s Ie '" u::::f :c ., Ui "0 C .. '" .. " ~ ,,2: ~ Q) Q) ~. E (J) ~ 5 ~ .~ ..c ~ 0 as ~ '2 ~ i ~.E~~!i c~8&.:= ~~~g>g> Q) '(ii"(ii'(ii '(ii E :J :J :J :J o 0 0 0 0 IIIII .. Cl C .. .c o "CI 888~~oo8888Si &.....0 0 0U'l<D 1"--_0000"'" !Q~~~~:!~oog~~g~ e-(t ~.....N ~ "- "' "' -g ~ => => u.. 0 C (J) :g co -' " g> .... os; "0 > .. 0:: -112- "0 ,!!!. en e ::;: "- ~ "0:: EO c: ~ ~ ,2 ~ ~ ~ "E:a~ .. .."" N .c " .. .. 0:: :J: 0:: _ C Q3 'c '(ij II) =:l a.. ~ co ~ ~ C ~a..~ en i.<<i g E o l! ': Cl c e .Iii a. " - o C :J: .. E CL o .. > .. e " E o C o u W .......- en en 0 ",,<oN .D 1"--- N' ..-,.....~ - - .... '" ,.; ... "'0 - ......,.- en en Q "" "' N Il'ir--.:'N' ~....'" - - .... '" ,.; ... "!. - .. g o .... C o ,., l! - .. OJ' 'c "ti E c: 'C<1 <(,> -g ~ .. 'e g> e 'c e ;S a:~ 1:- c: .. ,~ ~ o o Cl III e o -' <( .... o .... .. Cl C .. .c o ~~ .- C o .. :IE a 8 ~~ ~~~ ~ N 'C .. .... i!l 0 CL> e IL "- ~c;~ 000. g~N ~ N .. g o .. .... ffi 15 'E .9 en Q) .I:l 'C E .. c CL ~ E as ~ 0::: ~ ~ > 010)0& c: 0 '2: C :gQ:Q.lU '5 Q) en E co g C 0 .. .. C ~ (;) E 0 ~ 'in a. U II) II) 0 W .g<(Q) ~ co ii; co '0 0 '0 ~ 0 Q:i c:: 'E E u::: 0 E ci a 8u,j~ . . . HOUSING DEVELOPMENT PROGRAMS First Time Home Buyer Program $75,000 This program provides for loans of up to $5000 to assist low and moderate income families to purchase their first homes. These funds are used to cover the "entry costs" of homeowners hip - down payments and closing costs. National Objective: Low and Moderate Income Housing Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Citywide 15 Households TlGl.l High Affordability Historic Preservation Rehabilitation Grants $20,000 This program provides grants to low and moderate income homeowners to help them meet required historic preservation rehabilitation standards. National Objective: Low and Moderate Income Housing Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Citywide 4 Housing units TlG5.! Medium Sustainability Homeowner Rehabilitation $302,000 1) Operation: Paintbrush An on-going grant program, which provides low and moderate-income homeowners with exterior house paint free of charge. Homeowners are required to arrange for the actual painting of their homes. 2) Operation: Upkeep Grant or deferred payment loan for minor exterior repairs up to $5,000 to income-eligible homeowners. 3) Residential Rehabilitation Loan Program An on-going program to provide low-interest loans to qualified low and moderate-income homeowners for the rehabilitation of substandard housing units. 4) SewerlWater Connection Loan A program provides loans to low income homeowners to pay for sanitary sewer connection charges and emergency repairs to water and/or sewer lines. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Housing Citywide 50 Housing units TlG2.7 High Affordability Housing Planning/Administration Services and Staff $58,592 On-going staff support for general housing planning activities, including Consolidated Plan, and department administration. Local Objective: Priority: TlG2.1 High -113- Housing Code Enforcement $114,824 Intensive program of inspection of rental units within low and moderate-income neighborhoods to ensure the provision of safe and sanitary housing. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit Low/Moderate Income Areas 1000 Housing units TlG5.l High Sustainability Housing Rehabilitation Services and Staff $281,781 On-going staff support, including program management, technical assistance, loan packaging and inspection, for the City's rehabilitation loan program. Local Objective: Priority: TlG2.1 High Housing Trust $50,000 Assistance to nonprofit housing organizations and homeless initiatives to create permanently affordable housing. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit City-Wide 6 housing units assisted TlOl.3 High Sustainability Lead Paint Hazard Reduction $30,000 Provides activities in support of efforts to combat lead paint hazards in housing, including assessment and abatement with grants of up to $6000 to low/moderate income residents. National Objective: Low and Moderate Income Housing Location: Low/Moderate Income Areas Proposed Accomplishments: 10 Housing units Local Objective: TI G2.5 Priority: High Outcome: Accessibility PurchaselRehabilitationlResale (DREAMS) $15,000 This program provides funding to address the redevelopment of derelict properties. Properties acquired are resold to low/mod income homebuyers as part of the DREAMS program or to landlords who will provide affordable rents. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Housing Citywide I Housing unit TI G2.6 Medium Accessibility Rental Unit Rehabilitation $60,000 1) Emergency Code Enforcement Loan Program This program provides for rehab loans to correct code deficiencies and, in particular, emergency or health and safety corrections, for rental properties. The program aims at preventing the displacement of economically disadvantaged tenants as a result of code enforcement actions. Loans are fully amortized, no deferred payment terms. -114- . . . 2) Moderate Income Rental Rehab Loan Program This program provides loans to rehabilitate rental units throughout the community and is not tied to the Section 8 rental assistance program. The program is intended for renters at the 50-80 % of median income and loans are made fully amortizing with no deferred payment periods. 3) Accessibility Rehab This program provides grants to disabled tenants to make rental units accessible to the physically disabled. 4) Single Room Occnpancy Rehab This loan program targets the rehabilitation of single room occupancy units. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Housing Citywide 8 Housing units TlG2.4 High Affordability Total Housing Programs $1,007,197 ECONOMIC DEVELOPMENT PROGRAMS Economic Development Financial Assistance Program and Revolving Loan $85,039 This program provides both large and small businesses with attractive low-interest loan packages to support local economic development efforts, including projects to create or retain jobs, enhance the tax base and strengthen the local economy. To the greatest extent possible, these investment capital funds are used to benefit low and moderate income citizens, address slum and blight problems, leverage additional funding from state, federal and private sources and to assist in the retention and expansion of existing local businesses. National Objective: Low and Moderate Income Jobs Location: Citywide Proposed Accomplishments: 20 Jobs Local Objective: T3G 1.1 Priority: High Outcome: Sustainability Economic Development Program Services & Staff $136,001 Staff is responsible for the formulation, coordination and implementation of local economic development strategies. Staff acquires, develops and manages land for industrial development. Technical and financial assistance to local businesses in support of increased employment opportunities for low/mod income population is also provided. Local Objective: Priority: T3G3.4 High Total Economic Development Programs $221,040 -115- NEIGHBORHOOD and COMMUNITY DEVELOPMENT PROGRAMS Accessible Curb Ramps $64,448 Replace curbs at intersections throughout the City with accessible ramps to make public sidewalks accessible to persons with disabilities. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 50 Accessible ramps Local Objective: T2G3.l Priority: Medium Outcome: Accessibility Child Care Resource and Referral $ 8,833 This purchase of services project provides childcare information and assistance to both those needing childcare and to providers. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit Citywide 500 People T2Gl.l High Accessibility Community Partnership Program (CP2) CDAC $80,000 City Manager $72,000 An on-going grant program to provide support for activities developed and implemented by private agencies designed to benefit the community's low and moderate income residents or special needs populations. Funds are awarded on a competitive basis and are limited to $50,000 per recipient per year. The program is designed to support new and innovative projects, including capital expenditures and pilot programs and the removal of architectural barriers for accessibility. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit Citywide 300 People T2G1.2 High Accessibility Dubuque Dispute Resolution Center $2,000 Training, marketing and promotion of the Dubuque Dispute and Resolution Center. National Objective: Low and Moderate Income Benefit Location: City Wide Proposed Accomplishments: 25 People Local Objective: TlG3.2 Priority: Medium Outcome: Sustainability Information & Referral Services $25,069 The purchase ofservlees from Project Concern/Phone A Friend, Inc. Services for a twenty-four hour information network for community residents and a resource/counseling center for community services. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 500 People Local Objective: T2G 1.2 Priority: High Outcome: Accessibility -116- . . . Leadership Training $5,000 This provides leadership-training opportunities to neighborhood organization members or residents of low/mod income neighborhoods working to revitalize their neighborhoods. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit Low/ Moderate Areas 3 Organizations TIG2.2 High Sustainability Neighborhood Development Services & Staff $83,326 The Neighborhood Development Specialist coordinates the City's neighborhood Development programs and provides technical assistance to organizations and residents to improve Dubuque's neighborhoods. National Objective: Low and Moderate Income Benefit Location: Low/ Moderate Areas Proposed Accomplisbments: 9 Organizations Local Objective: T2G2.1 Priority: High Outcome: Accessibility Neigbborhood Infrastructure Improvements 1) Neighborhood Street Overlays Provides for pavement overlays in income eligible neighborhoods. $50,000 2) Neighborhood Sidewalk Program An on-going grant program to income eligible homeowners, on a case-by-case basis, to pay 75% of the cost to repair public sidewalks in front of their homes. 3) Neighborhood Step/Wall Repair An on-going program to renovate or remove steps and walls that are public safety problems in low- income areas. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit Low/Moderate Income Areas 25 public facilities TIG3.1 Medium Sustainability Neighborhood Recreation Programs CDAC $118,609 City Manager $121,609 An enhanced recreation program is offered in the City's older low and moderate-income neighborhoods to meet the needs of at-risk youth, promote self-esteem and build community. Activities include expanded after-school programs, open gym, basketball league and summer day camp. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit Low/Moderate Income Areas 4500 People T2G1.3 High Accessibility -117- Neighborhood Support Grants $27,748 This grant program provides resources for organized neighborhoods in low/mod income areas to encourage self- initiated revitalization efforts including physical improvements, clean-ups, communication efforts or other special projects. National Objective: Location: Proposed Accomplishments: Local Objective: Priority: Outcome: Low and Moderate Income Benefit Low/Moderate Income Areas 2000 People TIG2.3 High Sustainability Senior Center CDAC $20,000 City Manager $25,000 Education and recreation services provided to elderly citizens at the Dubuque Area Lifetime Center. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 700 People Local Objective: TlG3.3 Priority: High Outcome: Accessibility Washington Tool Library $15,500 An on-going free tool loan program operated by the Washington Neighborhood Tool Library, a non-profit organization staffed by volunteers. Funds are used to buy and repair tools and to cover building rent and utilities. Income eligible residents borrow tools at no charge for home repairs and improvements National Objective: Low and Moderate Income Benefit Location: City Wide Proposed Accomplishments: 600 People Local Objective: TI G2.l Priority: High Outcome: Accessibility Zoning Inspection/Enforcement $13,000 This project provides funding for inspection/enforcement staff services to low/mod income areas for zoning ordinance infractions and to provide support for neighborhood clean up efforts. National Objective: Low and Moderate Income Benefit Location: Low/Moderate Income Areas Proposed Accomplishments: 250 Housing Units Local Objective: T2G2.5 Priority: High Outcome: Sustainability Total Neighborhood and Community Development Programs $513,533 PLANNING AND ADMINISTRATION CDBG Administration Services and Staff $95,140 Staff support for general management. Oversight and coordination of the Community Development Block Grant program; assures compliance with federal regulations and reporting requirements. Local Objective: T2G3.3 Priority: High -118- . . . Finance Services and Staff $4,070 Additional financial reporting support and loan portfolio management is provided to the CDBG program from the City's Finance Department. Local Objective: Priority: T203.3 High Planning Administration On-going staff support for planning activities and department administration. Local Objective: T2G3.3 Priority: High $15,397 City Planning $77,594 On-going staff supports to assist in the fonnulation and implementation of policies, plans and programs for guiding the physical, economic and social development, redevelopment and conservation of the community and its resources. Local Objective: Priority: T203.3 High Total Planning and Administration $192,201 Grand Total CDBG Commitment $ 1,933,971 -119- e GENERAL OBLIGATION DEBT AND e DEBT CAPACITY e -121- e . . CIl ::l cr ::l .Q ::l C - o ,., ~ (J - o 0; :; c: Q) u: >- Cl c: .. .- Cl.'" .- c: " .. c: _ .- III ... - 0.. ::l o ... o - 0 III M ~ ~ Ui SeeD .5 e .... ;::: ... o o N , U> o o N ... .. CIl >- fti " III i:i: ... o o CIl !:! ::l '" C cD o - .... ;::: 0; Cl. 'u c: .;: 0.. 0; Cl. 'u c: ';: 0.. Cl .5O '" c: .. .... - III - ::l o III III CIl c: 't:l CIl - .Q CIl 't:l c: 't:l CIl 't:l c: o lD - o ~ .. E E ::l Ul - g CIl 0- ::l Eo III .!il <( - III a;e.! 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CITY OF DUBUQUE OVERVIEW OF BUDGETING INTRODUCTION The review and adoption of the budget is the single most important thing that a City Council does each year. The budget sets the tempo, capabilities, commitments and direction of the city government for an entire year. It is the yardstick against which the city operations can be evaluated. But what is a budget? The purpose of this narrative is to identify: a) what a budget is; b) why we prepare a budget; c) alternative types of budgets; d) major characteristics of the Dubuque budget system; and e) roles and responsibilities in preparing the annual budget. WHAT IS A BUDGET? A budget is several things: 1. The budget is a fiscal plan setting out anticipated revenue and expenditures for accomplishing a variety of services over a given time frame. The fiscal plan includes: a) an explanation of the services, activities, programs and projects to be provided by the City to the citizens; b) the resultant expenditure requirements; and c) the resources available for meeting the expenditure requirements. 2. The budget is a process concerned with the allocation of available resources among alternatives and competing departments, activities and programs. Cities rarely have enough money to be able to appropriate all the funds requested to all departments and activities and, as a result, there is considerable competition for whatever money is available. Budgeting, as a process, is concerned with developing an acceptable mix or balance between costs and services and represents the decisions made with respect to: a) quality and quantity of activities and projects to be undertaken; and b) financing of those activities and projects. 3. The budget is a policv document which: a. establishes the authority to spend funds, and levy and collect property taxes; b. represents a commitment to provide a specific level of service within a given amount of resources; and c. establishes criteria (objectives, measures and dollar limits) for evaluating and controlling expenditures, revenue collections and performance. Through the budget, policies are made, put into effect, and controlled. 4. The budget is a leqal requirement. State law requires the City Manager to prepare the annual budget and the City Council to adopt the annual budget and certify it to the County Auditor by March 15th of each year preceding the beginning of the fiscal year on July 1 st. The budget must be on a program - performance basis and show: a) expenditures for each program; b) income from sources other than property taxes; and -167- c) amount to be raised by the property taxation and the property tax rate expressed in dollars per thousand of assessed value. The budget must also show comparisons between expenditures in each program and between levels of service. WHY DO WE BUDGET? WHY IS IT IMPORTANT? Why do we go through the agony and the work? There are several reasons: 1. To meet the legal requirement. 2. To establish spending and income-raising authority. 3. To establish a work program for the fiscal year (objectives) and present it to the public. 4. To manage and control resources and their use. 5. To assure the proper mix of costs and services. 6. To assure the most effective and efficient use of available resources. 7. To set the tempo and direction of the city govemment. 8. To prioritize policies and objectives. 9. To link dollars with results. ALTERNATIVE TYPES OF BUDGETS Line-Item Budaet The most commonly used budget format in local government today is the line-item budget. A line- item budget is one, which allocates money for specific expense items or objects of expenditure without reference to the purpose, activities or program they will serve. This type of budget lists expenditures by such categories as full-time salaries, overtime, office supplies, postage, travel, rental expense, maintenance of buildings and grounds, office furniture and equipment, etc. The principal advantage of a line-item budget is that it is easy to prepare and facilitates expenditure control. However, this form of budget tells very little about the purposes, activities and programs of the city it serves. For example, it shows the amount of money that has been budgeted for personnel, but it does not show the nature of the services such personnel are to provide. Furthermore, the traditional line-item approach does not show comparative costs and benefits of competing programs, thus making it difficult for the City Council and management to evaluate individual activities and allocate resources. These characteristics limit its usefulness as a device for giving direction and purpose to public service activities and programs. -168- e . e PrOQram BudQet Local governments usually spend money to accomplish something more than purchasing goods and services. They are also concerned about programs, missions, or functions. A budget organized on the basis of its intended purpose is called a program budget. A program budget allocates money to functions or activities rather than to specific items of costs. A municipal budget of this type lists expenditures for such cost categories as protective services, leisure time opportunities, and administration. Few, if any, budgets are prepared exclusively on a program basis. Instead, program costs are usually broken into line items. The primary advantage of a program budget is that it shows the broad goals and purposes for which we are spending money and allows for setting priorities. The disadvantage is that it does not show the level of services that will be pwduced by the functions for which money has been allocated. This characteristic weakens its value as a tool for managing the quality and quantity of public service programs. Performance BudQetinQ Performance budgeting goes a step further than program budgeting by requiring the breakdown of service into workload or units of performance and the assigning of unit costs. A system of work measurement is used to evaluate productivity and effectiveness. The principal advantage of the performance type budget is that it shows both the activities of the city and the service levels of those activities and their respective costs. Thus, it can be a useful tool for regulating in a positive way, both the quality and quantity of city services. This characteristic makes the performance type budget the most useful of those types mentioned so far. However, it is also the most difficult to prepare. There are three reasons for this. First, it is difficult to define the units by which the work of the department or an activity or program can be measured. Second, even when the work unit can be defined, it may not be easy to establish a system, which will supply a reliable measure of the work output. And third, it requires much thought and study to establish acceptable service levels for various activities and programs. Zero Base BudQetinQ Traditional budgeting, whether line-item or program-oriented, tends to focus on how much you spent last year as a beginning point for budget preparation. That is to say that it is incremental, it adds an increment on top of last year's spending level generally without challenge and without consideration of alternatives or trade-offs. Zero Base Budgeting (ZBB) is a system whereby each activity or program, regardless of whether it is a new or existing program, must be justified in its entirety each time a new budget is formulated. Rather than using the previous year's budget as a base, ZBB assumes no base; all activities old and new must be explained and justified each year. The agency starts at zero. ZBB measures the desirability, need and beneficiaries of services as well as the reasonableness of the proposed costs, alternatives to the activity, and trade-offs between partial achievement of goals and the ability to fund all proposed budget expenditures. ZBB accomplishes this by dividing all the proposed activities or services of the governmental body into units of manageable size, subjecting them to detailed examination, and ranking them according to their importance. Revenues are matched against the list of services according to their rank. High-priority services are funded first. If money runs out, the low-priority services are not funded. -169- The characteristics of ZBB can be summarized as follows: 1. Scrutiny of old or existing activities as closely as new or proposed activities; 2. Reallocation of resources from low-priority activities to high-priority activities; 3. Emphasis on alternatives (levels of expenditures and services and methods of providing services); and 4. Allowance for budget reduction or expansion in a planned, logical manner. Dubuaue Budaet Approach The budget system being utilized by the City of Dubuque incorporates aspects of each of the several budget alternative types discussed here. The major characteristics of our budget system are: 1. It has line items for control and fiscal management purposes. 2. It is organized by program, department and fund. 3. It attempts to identify, analyze, and articulate the fundamental purposes and objectives of the Dubuque City government. This approach is intended to place emphasis upon commitments, accomplishments, and activities performed rather than upon items purchased and to provide for the establishment of priorities. 4. It attempts to identify, quantify, and analyze the demands on and accomplishments of organizational units in terms of established goals, objectives, and purposes. Are we achieving our goals and living up to our promises? This requires the establishment of workload and demand indicators and evaluation criterion. It is performance that counts. 5. It attempts to identify all costs of each department, activity, and program, including capital expenditure, debt service, and employee benefit costs. What does an activity or department really cost? 6. It presents alternative service and funding levels for all activities in the operating budget. The purpose is to provide the City Council with the widest pOSSible range of alternatives to maximize their opportunity for making policy decisions, assigning priorities and allocating scarce resources to accomplish their policy objectives. The City's budget approach involves the preparation of two budget documents. The Policv Budaet and the Detail Budaet. The Policv Budaet defines goals and objectives for all City departments and activities, relates them to cost and resource requirements and attempts to establish measures for evaluating accomplishment. Specific decision packages are developed and included in the Policv Budaet for alternative funding and service levels. The Policv Budqet emphasizes objectives, accomplishments, and alternative funding and service levels and is intended to keep the attention of the City Council and public on the major policy decisions involving what services the City government will provide, who will pay for them, and the implications of such decisions. The Detail Budqet document shows the budget by line item. It provides the line item detail for the Policv Budqet and forms a basis for fiscal control once the budget is adopted. -170- . 1. 2. 3. 4. . 5. 6. 1. 2. 3. 4. 5. 6. . 7. 8. ROLES AND RESPONSIBILITIES Budget preparation and administration is a shared responsibility between the City Council, City Manager, Finance Department, department manager, division manager, and supervisor. Each plays an important role in the fiscal management system and the quality of and satisfaction derived from the fiscal management system is a direct result of the efforts of the several participants. Lack of attention, failure to follow procedures and/or poor follow through at any level can undermine the best fiscal management system. Let's look at the roles each plays. City Council In a very real sense, budget preparation and administration begins and ends with the City Council. The City Council has the following responsibilities: Establish City goals and major performance objectives. Approve guidelines for preparing the annual operating budget. Establish through adoption of an annual budget what services and the level of services to be provided and how they will be financed. Establish rules for the conduct of the City's fiscal operations. Monitor progress toward achievement of objectives. Require independent audit of fiscal records and transactions. The Citv Manaaer The City Manager is responsible to the City Council for the day-to-day operation and administration of the City government. In terms of fiscal management, the City Manager has the following responsibilities: Develop policy guidelines for City Council review and adoption. Prepare and submit an annual operating budget and a five-year Capital Improvement Budget premised upon Council guidelines and goals and major performance objectives. Ensure the adopted budget is properly administered. Supervise the performance of all contracts for work to be done by the City. Authorize and direct the purchase of all supplies and materials used by the City. Keep Council fully advised on financial conditions of the City. Make financial reports available to City Council by the 1 at" of the month following the close of the preceding month. Establish rules for conduct of fiscal operations for which he is responsible. -171- Finance Department The Finance Department becomes an extension of the City Manager's Office for purposes of performing the delegated responsibilities. The responsibilities of the Finance Department include the following: 1. Administer the approved budget on a day-to-day basis to see that funds are being expended for the purposes approved and that all claims are supported by proper documentation. 2. Supervise sale of bond issues. 3. Administer centralized payroll system. 4. Administer decentralized purchase order system. 5. Assist the City Manager's Office in preparing the budget. Department Manaaers. Division Manaaers. and Supervisors The critical role in the fiscal management system is performed by department managers and their division managers and supervisors. The fiscal management system will be only as good as they make it. Their role includes: 1. Responsibility for the efficient and effective operation of the activities and tasks under their direction. Line supervisors are expected to control costs and achieve results. 2. Responsibility for preparation of budget requests, which emphasize objectives and service levels as well as traditional line item explanations and justifications for various funding levels and development of measures for evaluating progress toward objectives. What is the level of accomplishment, which can be expected from various funding levels, and how do we measure it? It is absolutely essential in our approach to budget preparation that accomplishments, objectives, and estimated costs be established by those in the organization who know the most about it and can be held accountable. Those are the department managers and their division managers and supervisors. 3. Responsibility for recommending and explaining needs and opportunities for service changes; reductions as well as expansions. 4. Responsibility for providing the planned and approved service level within budget limitations. 5. Responsibility for day-to-day department and activity budget administration. BUDGET CYCLE The budget cycle is a sequence of events covering the life of a budget from beginning to end. That is from the gleam in the City Manager's eye to the Council acceptance of the independent audit. The budget cycle is approximately twenty-six months long. The critical dates are spelled out in State law: March 15th is when the budget for the following fiscal year must be adopted by the City. Council: and July 151 as the beginning of the fiscal year. (a budget calendar is included in the beginning of the Citizen Guide. -172- . . . BUDGET AMENDMENT PROCESS Budget estimates may be amended and increased as the need arises to permit appropriation and expenditure of unexpended cash balances on hand and unanticipated revenues. Such amendment may be considered and adopted at any time during the fiscal year covered by the budget (but prior to May 31) by filing the amendments and upon publishing them and giving notice of the public hearing in the manner required in the State Code. Within ten days of the decision or order of the City Council, the proposed amendment of the budget is subject to protest, hearing on the protest, appeal to the state appeal board, and review by that body. A local budget must be amended by May 31 of the current fiscal year-to allow time for a protest hearing to be held and a decision to be rendered before June 30. Except as specifically provided elsewhere in the Iowa Administrative Code rules, all appropriation transfers between programs or funds are budget amendments and shall be prepared as provided in Iowa Code section 384.16. The program reference means anyone of the following nine major areas of public service that the City Finance Committee requires cities in Iowa to use in defining its program structure: Public Safety, Public Works, Health & Social Services, Culture & Recreation, Community & Economic Development, General Government, Debt Service/Capitallmprovement Projects, Business Type, and Non-Program. BUDGET ACCOUNTING BASIS The City's policy is to prepare the annual operating budget for governmental and proprietary fund types on the modified accrual basis. Under the modified accrual basis of accounting, revenues are recorded as they are collected unless susceptible to accrual, i.e., amounts that are measurable and available to finance the City's operations or of a material amount and not received at the normal time of receipt. Available means collectible within the current period or soon enough thereafter to be used to satisfy liabilities of the current period. Significant revenues, which are considered as susceptible to accrual, include property taxes, sales taxes, franchise taxes, interest, and certain state and federal grants and entitlements. Expenditures, other than interest on long- term debt, are recorded when the liability is incurred. Budgetary control is maintained at the activity or cost center level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Outstanding encumbrances at fiscal year end are not reported as expenditures, but as reservations of fund balance for subsequent year expenditures, based upon encumbrance appropriation authority carried over. FUND ACCOUNTING BASIS The accounts of the City are organized on the basis of funds and groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, equities, revenues and expenditures or expenses. The various funds are grouped by type in the budget. The following fund types are used by the City: Governmental Fund Tv Des Governmental funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (other than those in proprietary funds) are accounted for through governmental -173- funds. The measurement focus is upon determination of changes in financial position. The following are the City's governmental fund types: . The General Fund is the principal operating fund of the City and accounts for all financial transactions not accounted for in other funds. The general operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are financed through revenues received by the General Fund. . Special Revenue Funds are used to account for revenues derived from specific taxes, governmental grants, or other revenue sources, which are restricted to finance particular functions or activities of the City. The City's special revenue funds include Road Use Tax, Community Development, UDAG Repayments, Section 8 Housing, Lead Paint Grant, State Rental Rehab, Cable TV, Special Assessment, Expendable Library Gifts Trust, Tort Liability, Employee Benefits, and TIF funds. . Debt Service Funds are used to account for the accumulation of resources for, and the payment of, principal, interest, and other related costs of the City's general obligation debt. . Permanent Funds are used to account for resources that are legally restricted to the extent that only the earnings, and not principal, may be used for purposes that support the reporting of governmental programs. The City's permanent funds include: Lyons Peony Trust and Library Gifts Trusts. . Capital Improvement Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities. ProDrietarv Fund TVDes The City also has proprietary fund types, which are different from governmental fund types in that their focus is on the determination of net income or loss. The revenue from these funds is assumed to be adequate to fund the operation of the funds. The City's proprietary funds are as follows: . Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through use charges or where the periodic determination of net income or loss is deemed appropriate. The City's enterprise funds include Water, Parking, Sewer, Stormwater, Refuse, Transit, and America's River Project. . The Internal Service Fund accounts for the financing of goods and/or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost reimbursement basis. -174- . . . KEY TERMS FOR UNDERSTANDING DUBUQUE'S BUDGET SYSTEM PROGRAM * A program is a broad-based, homogenous and fundamental area of City government responsibility. Programs are presented as general statements, which define a major purpose of City government. Each program is divided into several departments and activities representing a separate and significant segment of the program of which it is an integral part. The state budget law requires that the budget be prepared and certified on a program basis. The City of Dubuque uses the following nine programs: 1. Public Safety 2. Public Works 3. Health and Social Services 4. Culture and Recreation 5. Community and Economic Development 6. General Government 7. Debt Service / Capital Projects 8. Business Type 9. Non-Program * Prior to Fiscal Year 2004, the State of Iowa, City Finance Committee changed the number of programs from 4 to 9 on the expenditure side. The Fiscal Year 2007 Citizen's Guide uses the new 9-program presentation. The budget is certified using the new 9 programs as required by Iowa budget law. ACTIVITY An Activity is an organizational unit responsible for a specific and measurable purpose. Every department or division of a department is organized into one or more Activities. The Activity is the unit for defining department and division responsibilities, establishing objectives and evaluating performance. The Activity is the building block, work unit and cost center of the financial management system. GOAL A Goal is a desirable end, condition, accomplishment and/or development, the attainment of which may never be fully realized, towards which organizational effort is expended according to assigned responsibilities, available resources and prepared plans. Goals are attained by means of objectives. Goals are broadly stated and useful in evaluating resource allocation decisions. For example, the Goal for the Park Areas and Maintenance Activity of the Park Division of the Leisure Services Department is to develop and maintain safe, clean, functional and attractive park and recreational facilities to meet the passive and active leisure time needs for all citizens and visitors. -175- OBJECTIVE An objective is simply a statement of results to be accomplished during the fiscal year in support of the broader goal. Objectives are major steps towards accomplishing established goals. An Objective should state the result to be achieved or accomplished, the timeframe, the cost and the action step. ALTERNATIVES This term means other possible activities or uses of funding besides those already decided upon or being considered. It also suggests the comparison between two or more possible approaches toward fulfilling the same purpose, goal or objective. ALTERNATIVE BUDGET LEVELS The Dubuque budget system utilizes a variation of the zero-based budget (ZBB) approach utilizing three alternative funding or budget levels: Maintenance Budget Level, Base Budget Level and Improvement Level. Each alternative funding level includes specific objectives to be accomplished (service levels to be offered) and associated costs. The budget decision becomes one of selecting alternatives, which maximize the achievements of City objectives according to established priorities within the context of limited resources and City Council policy. DECISION PACKAGE A decision package is one or more objectives of an activity, which represents a standalone alternative or decision. For example, the Base Level Increment of a particular activity may have twelve objectives. Some of these objectives may be interrelated and the twelve objectives may represent only four choices or stand alone decision packages. You may have one decision package with one objective, two decision packages with four objectives each and one decision package with three objectives. The important thing is that the decision package includes one or more stand alone objectives and is not dependent upon the approval of any other decision package. PERFORMANCE MEASUREMENT Performance measures are numbers that transmit some information about the quality or quantity of services provided by the City government. The primary reasons for attempting to measure performance are to: 1. Provide information for making better decisions; 2. Report on progress made toward established objectives; 3. Improve performance, suggest improvements and change priorities; and 4. Serve as an early warning device by indicating problem areas when they first begin to develop. -176- . . . APPROPRIATION Appropriation is the legal authorization of the City Council to expend resources from specific sources, for specific purposes, for stated periods of time. An appropriation is established by adoption of the budget or budget amendment after publication and public hearing as required by law. CASH For purposes of our financial management system, cash refers to money, revenue or fund balances available in the City treasury for financing an activity or project. ENCUMBRANCES Encumbrances are obligations in the form of purchase orders, contracts or salary commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved by an accounting entry. FISCAL YEAR In Iowa the fiscal year is a twelve-month period of time, July 1 through June 30, to which the annual budget applies and at the end of which the City determines its fiscal position and the results of its operations, activities and projects. FUND A fund is an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves and equities. Funds are established for many reasons including: (a) dedication of resources to specific activities or objectives; (b) maintenance of integrity or receipts from certain sources; and (c) compliance with legal restrictions or terms establishing a jurisdiction as trust or agent. OPERATING BUDGET The Operating Budget represents the various recurring activities and services provided by the several departments in the City government. The Operating Budget provides those services normally associated with the City government (e.g., police, fire, street maintenance, recreation) and involves expenditures which benefit the current fiscal year. (That is, items purchased are used up during the current fiscal period.) Expenditures in the Operating Budget are for such categories as Employee Expense, Supplies and Services, and Debt Service. Funding of the Operating Budget includes property taxes, shared state and federal revenues, fees, fines, licenses, permits, user charges and cash balances. -177- CAPITAL BUDGET The Capital Budget represents major "permanent" capital improvement projects requiring the nonrecurring expenditures of public funds for the acquisition of property or easement, construction, renovation or replacement of a physical asset of the City and any studies, engineering or surveys which are an integral part thereof. The Capital Budget is multi-year in scope, is updated annually and includes project-funding information. The first year of the Capital Budget (or Capital Improvement Program) is included with the Operating Budget for the same year to arrive at a total or gross budget amount. Capital budget financing comes primarily from bond proceeds, state and federal grants, Road Use Tax funds and utility depreciation funds. EXPENDITURE CATEGORY Expenditure category or classification is the basis for classifying and codifying costs. Major objects or categories of expense include: (a) Employee Expense; (b) Supplies and Services; (c) Capital Outlay; (d) Debt Service; and (e) Capital Improvements. Minor objects of expense or categories of expense are subdivisions of the major expense categories. For example, Employee Expense is divided into 21 subcategories, such as full-time employees, part-time employees, seasonal employees, overtime pay, holiday pay, social security expense and health insurance. Supplies and Services, Capital Outlay, Capital Improvements and Debt Service are divided into approximately 230 minor objects or categories of expense. Examples of such minor items of expenditure would be office supplies, dues and memberships, utility expense _ electricity, motor vehicle expense - fuel, library books, architectural services, desk/chairs, land acquisition, and construction contracts. See the Chart of Accounts for more information on expenditure category breakdowns. REVENUE CATEGORY Revenue category or classification is a basis for classifying and codifying revenue. There are eight major categories or revenue, each divided into specific revenue items. The eight major categories of revenue are as follows: 1. Property taxes 2. Licenses and permits 3. Intergovernmental revenue 4. Charges for services 5. Fines, forfeitures and penalties 6. Revenue from use of money and property 7. Miscellaneous revenue 8. Non-revenue receipts An example of the specific revenue items would include the following items in the licenses and permits revenue category: business licenses, cigarette licenses, beer permits, market stand rentals, building permits, plumbing permits, heating permits, etc. See the Chart of Accounts for more information on the revenue categories. -178- . . . ACCRUAL BASIS OF ACCOUNTING The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, not withstanding that the receipt of the revenue or the payment of the expenditure may take place, in whole or in part, in another accounting period. CASH BASIS OF ACCOUNTING The basis of accounting under which revenues are recorded when received in cash and expenditures are recorded when paid. MODIFIED ACCRUAL BASIS OF ACCOUNTING The basis of accounting under which expenditures are recorded at the time liabilities are incurred, and revenues are recognized when they are measurable and available. -179- . . . D~~~E ~<k~ MEMORANDUM November 16, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Policy Guidelines for Fiscal Year 2007 Budget Planning and Administration Budget Director Dawn Lang is recommending adoption of the Fiscal Year 2007 Budget Policy Guidelines. The guidelines reflect City Council direction given as part of the September 7 and 8, 2005, goal setting sessions. The budget guidelines are developed and adopted by City Council early in the budgeting process in order to provide targets or parameters within which the budget recommendation will be formulated. The final budget presented by the City Manager may not meet all of these targets due to changing conditions and updated information during budget preparation. To the extent the recommended budget varies from the guidelines, an explanation will be provided in the printed budget document. Some highlights of the document are: 1. Prior to Fiscal Year 2006 the policy in the Downtown Urban Renewal District was to only use 75% of the available Tax Increment Financing Revenues, returning the other 25% to the taxing districts. That policy was changed in Fiscal Year 2006 to allow capturing 100% of the TIF revenues to help fund the renovations needed for the downtown parking ramps. Only 6% of the TIF revenues, for a total of 81%, are needed to finance those renovations. These Fiscal Year 2007 guidelines continue the policy of claiming 100% of the available Downtown TIF revenues to help with financing the Downtown Loan Pool, to help with providing the 20% match toward Federal funds to build an intermodal transportation facility in the Port of Dubuque and assist with renovation of the Federal Building. 2. There are many high priority capital improvement projects, which need to be constructed during the FY 2007-2011 period. Most of these projects will be -183- possible without borrowing the money (Le., selling bonds) to help finance them. However, debt will be required on 3 major capital projects, that being the Drainage Basin Master Plan, Sanitary Sewer Fund, and Water Fund. 3. The Policy Guidelines include a property tax guideline that provides a reduction in the "City" share of property taxes for the average homeowner. The State of Iowa has negatively impacted homeowners in Dubuque by chronically under- funding the Homestead Tax Credit. In Fiscal Year 2004, the State only funded 85% of the tax credit, 81 % in Fiscal Year 2005, and 78% in Fiscal Year 2006. The Homestead Property Tax Credit was established by the State Legislature to reduce the amount of property tax collected. The intent of the credit was to be a form of tax relief and provide an incentive for home ownership. The State Homestead Property Tax Credit works by discounting the tax collected on the first $4,850 of a property's taxable value. This has no impact on what the City receives from State property tax collections, but provides tax relief for the average homeowner. Beginning in Fiscal Year 2004, the State of Iowa did not fully fund the State Homestead Property Tax Credit, resulting in the average homeowner paying the unfunded portion. Again this has no impact on what the City receives, however as a result has caused the average homeowner to pay more taxes. The City of Dubuque has a benchmark for no property tax increase to the average homeowner. This benchmark is for the City portion of the property tax paid by the average homeowner reduced by the State-mandated Homestead Property Tax Credit. The City of Dubuque's benchmark should not go up, just because the State Homestead Property Tax Credit was not fully funded. The benchmark used to calculate the property tax the average homeowner paid was $485.79 in Fiscal Year 2003 and Fiscal Year 2004. When the State started under-funding the Homestead Property Tax Credit in Fiscal Year 2004, City staff inadvertently changed the benchmark to the higher amount of property taxes paid by the average homeowner because of the State action. To adjust for that miscalculation by the City, these Fiscal Year 2007 guidelines adjust the guideline below the Fiscal Year 2006 average homeowner payment of $504.62 and below the Fiscal Year 2004 guideline of $485.79, and sets the average homeowner payment at $477.17. This guideline will be readjusted to $485.79 in Fiscal Year 2008 and beyond. This would be a 5.4% property tax decrease for the average homeowner in Fiscal Year 2007. The only reasonable alternative to this action would be to adjust in Fiscal Year 2007 from the $504.62 amount paid in Fiscal Year 2006 to $485.79 in Fiscal Year 2007; however, that is not the recommendation. -184- . . . One benefit of this reduction in Fiscal Year 2007 for the average homeowner is that it would also reduce the impact of the 10% equalization order issued by the State of Iowa on commercial properties. Preliminary citizen participation opportunities will be available. There will be a City Manager's Public Input meeting on Wednesday, November 30th at 5:15 p.m. and 6 City Council Work Sessions prior to the adoption of the FY 2007 budget before the state mandated deadline of March 15th. 2006. I concur with the recommendation and respectfully request Mayor and City Council adoption of the budget guidelines, which provides for no increase in the "City" share of property taxes for the average homeowner in Fiscal Year 2007, and reduces the property tax paid by the average homeowner by 5.4%. I/~~~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Dawn Lang, Budget Director -185- POLICY GUIDELINES FOR FY 2007 BUDGET PLANNING AND ADMINISTRATION OPERATING BUDGET GUIDELINES The Policy Guidelines are developed and adopted by City Council early in the budgeting process in order to provide targets or parameters within which the budget recommendation will be formulated. The final budget presented by the City Manager may not meet all of these targets due to changing conditions and updated information during budget preparation. To the extent the recommended budget varies from the guidelines, an explanation will be provided in the printed budget document. 1. CITIZEN PARTICIPATION Guideline To encourage citizen participation in the budget process, City Council will hold at least six work sessions in addition to the budget public hearing for the purpose of reviewing the budget recommendations for each City department and requesting public input following each departmental review. The budget will be prepared in such a way as to maximize its understanding by citizens. A copy of the recommended budget documents will be made available with the City Clerk and in the government documents section at the Carnegie Stout Public Library. The budget can be reviewed on the City's website at www.citvofdubuQue.orQ and copies of the budget on CD will be available. An opportunity will be provided for citizen input prior to formulation of the City Manager's recommended budget and again prior to final Council adoption, both at City Council budget work sessions and at the required budget public hearing. 2. SERVICE OBJECTIVES. ALTERNATIVE FUNDING AND SERVICE LEVELS Guideline The budget will identify specific objectives to be accomplished during the budget year, July 1 through June 30, for each activity of the City government. The objectives serve as a commitment to the citizens from the City Council and City administration and identify the level of service, which the citizen can anticipate. -186- . . . FY 2007 Policy Guidelines Page 2 3. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED Guideline The recommended City operating budget for Fiscal Year 2007 will consist of a Recommended City Council Policy Budget that is a collection of information that has been prepared for department hearings and a Citizens Guide to the Recommended FY 2007 Budget. The Recommended City Council Policy Budget includes the following information for each department: Highlights of Prior Year's Accomplishments and Future Year's Initiatives, a financial summary, a summary of decision packages requested and recommended, significant line items, capital improvement projects in the current year and those recommended over the next five years, organizational chart for larger departments, major goals, objectives and performance measures for each cost center within that department, and line item expense and revenue financial summaries. The purpose of these documents are to focus the attention of the City Council and the public on policy decisions involving what services the City government will provide, who will pay for them and the implications of such decisions. They will emphasize objectives, accomplishments and associated costs for the budget being recommended by the City Manager. The Citizens Guide section of the Recommended FY 2007 Budget is a composite of tables, financial summaries and explanations, operating and capital budget messages and the adopted City Council Budget Policy Guidelines. Through graphs, charts and tables it presents financial summaries, which provide an overview of the total operating and capital budgets. 4. BALANCED BUDGET Guideline The City will adopt a balanced budget in which expenditures will not be allowed to exceed reasonable estimated resources. The City will pay for all current expenditures with current revenues. -187- FY 2007 Policy Guidelines Page 3 5. BALANCE BETWEEN SERVICES AND TAX BURDEN Guideline The budget should reflect a balance between services provided and the burden of paying for those services. It is not possible or desirable for the City to provide all of the services requested by individual citizens. The City must consider the ability of citizens to pay for services in setting service levels and priorities. 6. MAINTENANCE OF EXISTING SERVICES Guideline To the extent possible with the financial resources available, the City should attempt to maintain the existing level of services. Annually, however, each service should be tested against the following questions: (a) Is this service truly necessary? (b) Should the City provide it? (c) What level of service should be provided? (d) Is there a better, less costly way to provide it? (e) What is its priority compared to other services? (f) What is the level of demand for the service? (g) Should this service be supported by property tax, user fees, or a combination? 7. IMPROVED PRODUCTIVITY Guideline Efforts should continue to stretch the value of each tax dollar and the City services that it buys through improved efficiency and effectiveness. Using innovative and imaginative approaches to old tasks, reducing duplication of service effort, creative application of new technologies and more effective organizational arrangements are approaches to this challenge. 8. USE OF VOLUNTEERS Discussion As our financial capabilities decrease, we must seek to expand our resources by continuing to get citizens directly involved in supplementing our service delivery capability. Citizens must be encouraged to assume tasks previously performed or provided by City government. This may require us to change our approach to -188- . e . FY 2007 Policy Guidelines Page 4 service delivery, such as, providing organizational skills, training, coordinating staff, office space, meeting space, equipment, supplies and materials, but not directly providing the more expensive full-time staff. Activities where citizens can continue to take an active role include: Library, Recreation, Parks, Five Flags Center (through SMG, Inc., the private management company hired by the City as of July 1,2004), Cable TV (government channel camera operators) and Police. The City initiated the Dubuque Volunteer Corps Program in FY 1998 to encourage citizen involvement in the many programs offered by the City and in maintaining the facilities for community betterment. Guideline In the future, the maintenance of City services may well depend on volunteer citizen staffs. In FY 2007, efforts shall continue through the Dubuque Volunteer Corps to identify and implement areas of City government where (a) volunteers can be utilized to supplement City employees to maintain service levels (i.e., Library, Recreation, Parks, Cable TV, Police) or (b) services can be "spun off" to non-government groups and sponsors (i.e., YMCAlYWCA, United Way groups, Recreation Groups). 9. RESTRICTIONS ON INITIATING NEW SERVICE Guideline No new service will be considered except (a) when additional revenue or offsetting reduction in expenditures is proposed or (b) when mandated by state or federal law. 10. SALARY INCREASES OVER THE AMOUNT BUDGETED TO BE FINANCED FROM BUDGET REDUCTIONS IN THE DEPARTMENT(SI OF THE BENEFITING EMPLOYEES Discussion The recommended budget will include salary amounts for all City employees. However, past experience shows that budgeted amounts are often exceeded by fact finder and/or arbitrator awards. Such "neutrals" often do not take into account the overall financial capabilities and needs of the community and the fact that the budget is a carefully balanced and fragile thing. Such awards have caused budgets to be overdrawn, needed budgeted expenditures to be deferred, working balances to be expended and, in general, have reduced the financial condition or health of the City government. To protect the financial integrity of -189- FY 2007 Policy Guidelines Page 5 the City government, it is recommended that the cost of any salary adjustment over the amount provided in the budget (that is, not financed in the budget) come from reductions in the budget of the department(s) of the benefiting employees. Guideline Salary increases over the amount budgeted for salaries shall be financed from operating budget reductions in the department(s) of the benefiting employees. 11. BALANCE BETWEEN CAPITAL AND OPERATING EXPENDITURES Guideline The provision of City services in the most economical and effective manner requires a balance between capital (with particular emphasis upon replacement of equipment and capital projects involving maintenance and reconstruction) and operating expenditures. This balance should be reflected in the budget each year. 12. USER CHARGES Discussion User charges or fees represent a significant portion of the income generated to support the operating budget. It is the policy that user charges or fees be established when possible so those who benefit from a service or activity also help pay for it. This is easy in some cases and municipal utility funds have been established for certain activities, which are intended to be self-supporting. Examples of utility funds include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund. In other cases, a user charge is made after the Council determines to what extent an activity is to be self-supporting. Examples of this arrangement are fees for swimming, golf and recreation programs and certain inspection programs. Guideline User fees and charges should be established where possible so that those who utilize or directly benefit from a service, activity or facility also help pay for it. -190- e FY 2007 Policy Guidelines Page 6 User fees and charges for each utility fund (Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set at a level that fully supports the total direct and indirect cost of the activity, including the cost of annual depreciation of capital assets and pay-as-you-go financing for future capital improvement projects. User fees and charges in the General Fund shall be established to cover not less than the following percentages of direct operating costs (excluding debt service): FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 ACTUAL ACTUAL ACTUAL BUDGETED RECOM'D DEPARTMENT/DIVISION PERCENT PERCENT PERCENT PERCENT PERCENT Leisure Services Department Recreation Division Adult Athletics' 81.0 76.0 77.9 74.9 61.8" Children's Activities 54.0 52.0 54.7 52.4 53.2 Therapeutic Recreation 19.0 14.0 13.6 18.0 13.3 Recreation Classes 42.0 45.0 38.8 48.0 42.0 e Swimming' 69.0 73.0 72.4 71.7 69.6 Golf* Surplus to Golf Devel' Fund 100.0 93.0 111.2 100.2 101.5 Park Division 10.5 10.7 13.4 11.2 12.7 Library Department excl' Gift Trusts 6.1 5.9 6.1 5.0 4.8 Airport Department wlabated debt 79.8 77.6 82.2 75.9 76.8 Building Services Division 77.8 95.6 111.5 103.1 99.2 Planning Services Department 11.9 17.6 16.6 15.3 15.3 Health Services Department Food/Environmentallnsp. 57.6 51.8 54.4 54.5 53.0 Animal Control'" 81.7 99.2 70.2 69.3 55.7 Housing Services Department General Housing Inspection 34.8 54.6 42.1 37.1 41.3 " Includes an amount to help cover indirect costs (administration). "" McAleece concessions moved to a separate activity. """Increased cost of the Humane Society contract is decreasing this percentage. . -191- FY 2007 Policy Guidelines Page 7 13. OUTSIDE FUNDING Discussion The purpose of this guideline is to establish the policy that the City should aggressively pursue outside funding to assist in financing its operating and capital budgets. However, the long-term commitments required for such funding must be carefully evaluated before any agreements are made. Commitments to assume an ongoing increased level of service or level of funding once the outside funding ends must be avoided. Guideline In order to minimize the property tax burden, the City of Dubuque will make every effort to obtain federal, state and private funding to assist in financing its operating and capital budgets. However, commitments to guarantee a level of service or level of funding after the outside funding ends shall be avoided. 14. GENERAL FUND OPERATING RESERVE OR WORKING BALANCE Discussion An operating reserve or working balance is an amount of cash, which must be carried into a fiscal year to pay operating costs until tax money, or other anticipated revenue comes in. Without a working balance there would not be sufficient cash in the fund to meet its obligations and money would have to be borrowed. WorkinQ balances are not available for fundinQ a budQet: they are reQuired for cash flow (i.e., to be able to pay our bills before taxes are collected). The rule of thumb the state recognizes for determining a reasonable amount for a working balance is (a) anticipated revenues for the first three months of the fiscal year less anticipated expenditures or (b) 5 percent of the total General Fund operating budget (excluding fringes and tort liability expense). However, in discussions with Moody's Investor Service, a factor of 10 percent was recommended for "A" rated cities. This is due to the fact that a large portion of our revenue sources are beyond our control and therefore uncertain. In the case of Dubuque, 10% represents approximately $3,093,000. Guideline The guideline of the City of Dubuque is to maintain a General Fund working balance or operating reserve of 10 percent of the total General Fund Operating budget requirements or approximately $3,093,000 for FY 2007. -192- e e e FY 2007 Policy Guidelines Page 8 15. USE OF UNANTICIPATED. UN-OBLIGATED. NONRECURRING INCOME Discussion Sometimes income is received that was not anticipated and was not budgeted. Often this money is not recurring and reflects something, which happened on a one-time basis to generate the "windfall". Nonrecurring income must not be spent for recurring expenses. To do so causes a funding shortfall the next budget year before you even start budget preparation. Nonrecurring expenditures would include capital improvements and equipment purchases. Guideline Nonrecurring un-obligated income shall be spent only for nonrecurring expenses. Capital improvement projects and major equipment purchases tend to be nonrecurring expenditures. 16. USE OF "UNENCUMBERED FUND BALANCES" Discussion Historically a budget is not spent 100% by the end of the year and a small unencumbered balance remains on June 30th. In addition, income sometimes exceeds revenue estimates resulting in some unanticipated balances at the end of the year. These amounts of un-obligated, year-end balances are in turn "carried over" into the new fiscal year to help finance it. The FY 2005-06 General Fund budget, which went into effect July 1, anticipated a "carryover balance" of $200,000 or approximately 2 percent of the General Fund. For multi-year budget planning purposes, these guidelines assume a carryover balance of $200,000 in FY 2007 through FY 2011. Guideline The available carryover General Fund balance to help finance the budget and to reduce the demand for increased taxation shall be anticipated not to exceed $200,000 for FY 2006-07 and beyond through the budget planning period. Any amount over that shall be programmed in the next budget cycle as part of the capital improvement budgeting process. -193- FY 2007 Policy Guidelines Page 9 17. PROPERTY TAX DISCUSSION AssumDtions - Resources a. Unencumbered funds or cash balances of $200,000 will be available in FY 2007 and each succeeding year to support the operating budget. b. State-shared revenues, such as Bank Franchise, Municipal Assistance, Liquor Sales, Personal Property Replacement Taxes, and Machinery and Equipment Property Tax Replacement have been permanently cut from the City's resources in the last 3 budget years. c. Hotel/motel tax receipts are projected at the same level as the FY 2006 budgeted receipts (which included a 10% increase over FY 2005 budgeted receipts), and then increase at an annual rate of 3 percent per year. d. State Transit operating assistance will also be maintained at its FY 2006 budgeted level. e. Miscellaneous revenue, excluding state shared revenues, has been estimated at 2 percent growth per year over budgeted FY 2006. f. Gaming revenues generated have been estimated based on FY 2006 projections from the implementation of a new lease agreement and expanded gaming operations from increasing slot machines (600 to 1,000) and adding table games. g. Gaming revenues from taxes and the ORA lease (not distributions) remain unchanged from the FY 2006 split of 62.72% /37.28% between operating and capital budgets for FY 2007. h. The residential rollback factor will decrease from 47.960 percent to 45.996 percent or a 4.10 percent reduction for FY 2007. For Fiscal Years 2008 and beyond, a 10-year average for rollbacks and equalization orders was used. i. Property reappraisals were completed by the Dubuque City Assessor's office and went into affect January 1, 2004. The FY 2006 assessed valuation for the City of Dubuque is based on the reappraised valuations. Residential property valuations increased 6.2 percent, Commercial property valuations decreased 3 percent and Industrial property valuations increased 19.9 percent. FY 2007 reflects this increased assessed value for the average homeowner. Assessed valuations were increased 2 percent per year beyond FY 2007. -194- . . . FY 2007 Policy Guidelines Page 10 j. Sales tax projections anticipate 50 percent of four quarterly payments in the General Fund for property tax relief. Sales tax projections for FY 2007 are projected at the same level as the FY 2006 budgeted receipts (which included a 10% increase over FY 2005 budgeted receipts), and then increase at an annual rate of 3 percent per year. k. During the FY 2006 budget process, the City Council approved changing the amount requested from certain parcels in the former Downtown TIF district from 75 percent to 100 percent of Tax Increment revenue, excluding certain economic development grants that require 100 percent of the revenue from a particular project. This district is now referred to as the Greater Downtown TIF after the Downtown and Ice Harbor TIF districts were combined. The FY 2006 five year CIP included using a portion of the additional funds in FY 2007-2010 for Parking Fund major ramp improvement debt service abatement. It will be recommended through the FY 2007 budget process that the remaining TIF revenue from this change be used for downtown and Ice Harbor development projects such as the federal building, a source for the depleted Downtown Loan Pool Program, and parking demands in the Ice Harbor. These additional Tax Increment funds would be paid to the City in FY 2007 (September/March). To the extent these funds are not required to support debt payments or project expense, the excess will be distributed per state code to each taxing body. I. For purposes of budget projections only, it is assumed that City property taxes will continue to increase at a rate necessary to meet additional requirements over resources beyond FY 2007, with the gaming revenue (from taxes and the ORA lease) split remaining the same as FY 2006 at 62.72% operating budget and 37.28% capital budget. m. Gas and electric franchise fees have been adjusted based on two year's trend data and an estimated increase in energy costs. The FY 2007 budget is estimated to increase 13 percent over FY 2005 actual for electric and 20% over FY 2005 for gas, and then increases at an annual rate of 2.5 percent per year. n. New revenues include $45,000 per year for the Dog Track Hotel Land Lease and $225,000 per year beginning in FY 2009 for Diamond Jo parking privileges. -195- FY 2007 Policy Guidelines Page) I Assumptions - Reauirements a. A wage increase is reflected in the projections for FY 2007 of 3.5% and 3% for each succeeding year. Police and Fire retirement rates have been decreased 1.6 percent, saving the City approximately $45,000 per year. b. Medical expense costs for Police and Fire retirees is anticipated to increase for FY 2007 from $31,000 to $100,000 based on actual trend data. c. Health insurance costs are estimated to increase 7 percent over the FY 2006 budgeted rates with FY 2007 representing the 2nd year employees are contributing 10% towards their health insurance premium. Estimates for FY 08-11 have been increased by 7 percent per year. d. General operating supplies and services are estimated to increase 6 percent over actual in FY 2005 or 3 percent over budget in FY 2006, depending on which year reflects expenditures more accurately. 2.5 percent increase is estimated in succeeding years. e. Electrical energy expense is estimated to increase 13 percent over FY 2005 actual expense, then 2.5 percent per year beyond. f. Natural gas expense is estimated to increase 20 percent over FY 2005 actual, then 2.5 percent per year beyond. There is no degree-day adjustment this year and is higher due to natural disasters affecting costs. g. The Convention and Visitors Bureau contract will continue at 50 percent of actual hotel/motel tax receipts, less a $35,000 loan repayment. h. Equipment costs for FY 2007 are estimated to increase 3 percent over FY 2006 budget, then 2.5 percent per year beyond. i. Debt service is estimated based on no additional tax-supported General Obligation bond sales in FY 2007 - 2011. j. Unemployment expense in the General Fund has been increased from $30,000 to $50,000 for FY 2007 based on past years actual experience. k. Motor vehicle fuel expense is estimated to increase 25 percent, low sulfur diesel fuel increases 40 percent, and high sulfur diesel fuel increases 29 percent over FY 2005 actual expense, then 2.5 percent per year beyond. I. Postage rates for FY 2007 are estimated to increase 9.4 percent over FY 2006 and remain at that level per year beyond. -196- . . . FY 2007 Policy Guidelines Page I 2 m. Damage claims expense for FY 2007 is anticipated to increase from $75,500 to $100,000 to cover the aggregate deductible based on past years actual experience. -197- FY 2007 Policy Guidelines Page I 3 IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE CITY TAX PERCENT DOLLAR ACTUAL - PAST HISTORY CALCULATION INCREASE INCREASE FY 1989 "City" Property Tax $ 453.99 -11.4% - $ 58.51 FY 1990 "City" Property Tax $ 449.94 - .9% -$ 4.05 FY 1991 "City" Property Tax' $ 466.92 +3.8% +$ 16.98 FY 1992 "City" Property Tax $ 483.63 +3.6% +$ 16.71 FY 1993 "City" Property Tax' $ 508.73 +5.0% +$ 5.10 FY 1994 "City" Property Tax $ 510.40 + .3% +$ 1.51 FY 1995 "City" Property Tax' $ 522.65 + 2.4% +$ 12.41 FY 1996 "City" Property Tax $ 518.10 - .9% -$ 4.54 FY 1997 "City" Property Tax' $ 515.91 - .4% -$ 2.19 FY 1998 "City" Property Tax $ 512.25 - .7% -$ 3.66 FY 1999 "City" Property Tax' $ 512.25 - .0% -$ 0.00 FY 2000 "City" Property Tax $ 511.38 - .2% -$ 0.87 FY 2001 "City" Property Tax $ 511.38 0.00% $ 0.00 FY 2002 "City" Property Tax $ 511.38 0.00% $ 0.00 FY 2003 "City" Property Tax' $ 485.79 - 5.00% -$ 25.58 FY 2004 "City" Property Tax $ 485.79 0.00% $ 0.00 FY 2004 With Homestead Adj. $ 493.26 + 1.54% +$ 7.46 FY 2005 "City" Property Tax' $ 485.93 + 0.03% +$ 0.14 FY 2005 With Homestead Adj.' $ 495.21 + 0.40% +$ 1.95 FY 2006 "City" Property Tax(1) $ 494.27 + 1.72% +$ 8.34 FY 2006 With Homestead Adj. (1) $ 504.62 + 1.90% +$ 9.41 PROPOSED FY 2007 "City" Property Tax'(2) $ 477.17 - 5.44% -$ 27.44 Average FY 1989-FY 2007 - .19% -$ 2.13 PROJECTION " FY 2008 "City" Property Tax (3) $ 488.48 + 2.37% +$ 11.31 FY 2009 "City" Property Tax'(3) $ 501.83 + 2.73% +$ 13.35 FY 2010 "City" Property Tax (3) $ 520.42 + 3.70% +$ 18.59 FY 2011 "City" Property Tax'(3) $ 540.76 + 3.91 % +$ 20.34 , Denotes year of State-issued equalization orders. (1) The FY 2006 property tax calculation takes into account the 6.2% valuation increase for the average residential homeowner as determined by the reappraisal. (2) FY 2007 rate offsets the miscalculation of the FY 2005 & 2006 tax rate, to show no increase to the average homeowner (explained on the next 2 pages). (3) If in FY 2008 and beyond, the goal of City Council is no property tax increase for the average homeowner, the rate would be the benchmark of $485.79. -198- . FY 2007 Policy Guidelines Page I 4 EXPLANATION OF FY 2007 TAX RATE ADJUSTMENT ACTUAL BENCHMARK DIFFERENCE FY 2004 Assessed Value $ 101,458 $ 101,458 Rollback Factor 0.513874 0.513874 Taxable Value $ 52,137 $ 52,137 Tax Rate 10.2730 10.2730 Gross "City" Properly Tax $ 535.61 $ 535.61 Homestead Tax Credit 49.82 49.82 BENCHMARK Net "City" Property Tax $ 485.79 $ 485.79 $ 0.00 FY 2005 Assessed Value $ 101,458 $ 101 ,458 Equalization Order 8.00% 8.00% Taxable Value $ 109,575 $ 109,575 Rollback Factor 0.48456 0.48456 Taxable Value $ 53,095 $ 53,095 Tax Rate 10.0720 10.0692 . Gross "City" Properly Tax $ 534.78 $ 534.63 Homestead Tax Credit 48.85 48.84 Net "City" Property Tax $ 485.93 $ 485.79 $ 0.14 Projected 6% increase in Assessed Value for Average Homeowner for revaluation, final was 6.2% FY 2006 Assessed Value $ 116,368 $ 116,368 Rollback Factor 0.4796 0.4796 Taxable Value $ 55,810 $ 55,810 Tax Rate 9.6991 9.5328 Gross "City" Properly Tax $ 541.31 $ 532.03 Homestead Tax Credit 47.04 46.23 Net "City" Property Tax $ 494.27 $ 485.79 $ 8.48 PROJECTION FY 2007 Assessed Value $ 116,368 $ 116,368 Equalization Order 0.00% 0.00% Taxable Value $ 116,368 $ 116,368 Rollback Factor 0.45996 0.45996 Taxable Value $ 53,525 $ 53,525 Tax Rate 9.8033 9.9803 Gross "City" Properly Tax $ 524.72 $ 534.19 Homestead Tax Credit 47.55 48.40 . Net "City" Property Tax $ 477.17 $ 485.79 $ (8.62) -199- FY 2007 Policy Guidelines Page I 5 The Homestead Property Tax Credit was established by the state legislature to reduce the amount of property tax collected. The intent of the credit was to be a form of tax relief and provide an incentive for home ownership. The State Homestead Property Tax Credit works by discounting the tax collected on the first $4,850 of a property's taxable value. This has no impact on what the City receives from State property tax collections, but provides tax relief for the average homeowner. Beginning FY 2004, the State of Iowa did not fully fund the State Homestead Property Tax Credit resulting in the average homeowner paying the unfunded portion. Again this has no impact on what the City receives, however as a result has caused the average homeowner to pay more taxes. The City of Dubuque has a benchmark for no property tax increase to the average homeowner. This benchmark is for the City portion of the property tax paid by the average homeowner reduced by the FULL State mandated Homestead Property Tax Credit. The City of Dubuque's benchmark should not go up, just because the State Homestead Property Tax Credit was not fully funded. In FY 2005 and FY 2006 a miscalculation of the property tax rate occurred by using the benchmark reduced by the partially funded State Homestead Property Tax Credit. To correct this oversight, the FY 2007 City property tax rate will include a one time reduction (-$8.62) of the City portion of property taxes paid by the average homeowner. Once again, incompliance with policy guidelines, FY 2007 will reflect no property tax increase to the average homeowner. In FY 2007 the average homeowner will pay $477.17 in city property taxes, a 5.44% reduction from FY 2006 and less than the standard benchmark of $485.74. In FY 2008 the City portion of property taxes will return to $485.79 if the City Council adopts the policy of no property tax increase for the average homeowner. Homestead Property Tax Credit History n:::::::> State of Iowa Funded 100% of the * 2002-2003 Homestead Property Tax Credit n:::::::> State of Iowa Funded 85% of the * 2003-2004 Homestead Property Tax Credit n:::::::> State of Iowa Funded 81% of the * 2004-2005 Homestead Property Tax Credit n:::::::> State of Iowa Funded 78% of the * 2005-2006 Homestead Property Tax Credit n:::::::> Assumed Homestead will be 100% * 2006-2007 Funded by the State of Iowa -200- e FY 2007 Policy Guidelines Page ] 6 IMPACT ON COMMERCIAL PROPERTY - EXAMPLE CITY TAX PERCENT DOLLAR ACTUAL - PAST HISTORY CALCULATION INCREASE INCREASE FY 1989 "City" Property Tax $2,106.42 -15.4% -$ 384.00 FY 1990 "City" Property Tax $2,086.50 - .9% -$ 20.00 FY 1991 "City" Property Tax' $2,189.48 +4.9% +$ 102.98 FY 1992 "City" Property Tax $2,280.18 +4.1% +$ 90.70 FY 1993 "City" Property Tax' $2,231.05 - 2.2% -$ 49.13 FY 1994 "City" Property Tax $2,250.15 +0.9% +$ 19.10 FY 1995 "City" Property Tax' $2,439.60 +8.4% +$ 189.45 FY 1996 "City" Property Tax $2,439.60 + 0.0% +$ 0.00 FY 1997 "City" Property Tax' $2,659.36 +9.0% +$ 219.76 FY 1998 "City" Property Tax $2,738.43 +2.97% +$ 79.07 FY 1999 "City" Property Tax' $2,952.03 +7.8% +$ 213.60 FY 2000 "City" Property Tax $2,934.21 - 0.6% -$ 17.82 FY 2001 "City" Property Tax $2,993.00 +2.0% +$ 58.86 FY 2002 "City" Property Tax $2,910.25 -2.77% -$ 82.83 e FY 2003 "City" Property Tax' $3,186.27 +9.48% +$276.03 FY 2004 "City" Property Tax $3,278.41 + 2.89% +$ 92.14 FY 2005 "City" Property Tax' $3,349.90 + 2.18% +$ 71.49 FY 2006 "City" Property Tax (1) $3,152.52 - 5.89% -$197.38 PROPOSED FY 2007 "City" Property Tax'(2) $3,475.27 +10.24% +$322.75 Average FY 1989-2007 + 1.95% +$ 51.83 PROJECTION ** FY 2008 "City" Property Tax $3,576.04 + 2.90% +$ 100.77 FY 2009 "City" Property Tax' $3,646.01 + 1.96% +$ 69.97 FY 2010 "City" Property Tax $3,768.36 + 3.36% +$ 122.35 FY 2011 "City" Property Tax' $3,886.06 + 3.12% +$117.70 . Denotes year of State-issued equalization orders (1) The FY 2006 property tax calculation takes into account the 3% valuation decrease for commercial property as determined by the reappraisal. (2) If the City Council was not reducing the rate in FY 2007, the impact on Commercial Property would be a 12.23% increase as opposed to the 10.24% increase reflected. This is due to a 10% equalization order on Commercial Property from the State of Iowa. . -201- FY 2007 Policy Guidelines Page I 7 IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE CITY TAX PERCENT DOLLAR ACTUAL - PAST HISTORY CALCULATION INCREASE INCREASE FY 1989 "City" Property Tax $5,900.35 -15.40% -$1,074.65 FY 1990 "City" Property Tax $5,844.55 - .90% -$ 55.80 FY 1991 "City" Property Tax $6,133.00 + 4.90% +$ 288.45 FY 1992 "City" Property Tax $6,387.05 + 4.10% +$ 254.05 FY 1993 "City" Property Tax $6,249.45 - 2.20% -$ 137.60 FY 1994 "City" Property Tax $6,302.95 + 0.90% +$ 53.50 FY 1995 "City" Property Tax $5,891.05 - 6.50% -$ 411.90 FY 1996 "City" Property Tax $5,891.05 + 0.00% +$ 0.00 FY 1997 "City" Property Tax $5,690.75 - 3.40% -$ 200.30 FY 1998 "City" Property Tax $5,700.56 + .17% +$ 9.81 FY 1999 "City" Property Tax $5,536.70 - 2.87% -$ 163.86 FY 2000 "City" Property Tax $5,358.00 - 3.23% -$ 178.70 FY 2001 "City" Property Tax $5,533.00 + 3.28% +$ 175.55 FY 2002 "City" Property Tax $5,380.42 - 2.77% -$ 153.13 FY 2003 "City" Property Tax $5,106.00 - 5.10% -$ 274.40 FY 2004 "City" Property Tax $5,136.50 + .60% +$ 30.50 FY 2005 "City" Property Tax $5,036.00 - 1.96% -$ 100.50 FY 2006 "City" Property Tax(1) $5,814.61 +15.46% +$ 778.61 PROPOSED FY 2007 "City" Property Tax $5,877.08 + 1.07% +$ 62.47 Average FY 1989-FY 2007 - 0.73% -$ 57.78 PROJECTION** FY 2008 "City" Property Tax $5,996.14 + 2.03% +$ 119.06 FY 2009 "City" Property Tax $6,113.46 + 1.96% +$ 117.32 FY 2010 "City" Property Tax $6,318.61 + 3.36% +$ 205.15 FY 2011 "City" Property Tax $6,515.97 + 3.12% +$ 197.36 (1 )The FY 2006 property tax calculation takes into account the 19.9% valuation increase for industrial property as determined by the reappraisal. -202- e FY 2007 Policy Guidelines Page 18 History of Increases in Property Tax Askings % Chanae Fiscal "City" Property in Tax Present Impact Year Tax Askinas (000) Askinas on Homeowner FY 1989 $10,918,759 -12.0% Sales Tax initiated -11.4% FY 1990 $10,895,321 - 0.2% - .9% FY 1991 $11,553,468 +6.0% +3.8% FY 1992 $12,249,056 +6.0% + 3.6% FY 1993 $12,846,296 4.9% +5.0% FY 1994 $13,300,756 + 3.5% + .3% FY 1995 $13,715,850 + 3.1% +2.4% FY 1996 $14,076,320 +2.6% - .9% FY 1997 $14,418,735 +2.4% - .4% FY 1998 $14,837,670" +2.9% - .7% FY 1999 $15,332,806" + 3.3% .0% FY 2000 $15,285,754 - 0.3% - .2% FY 2001 $15,574,467 + 1.9% .0% FY 2002 $15,686,579 + .7% .0% e FY 2003 $15,771,203 + .5% - 5.0% FY 2004 $16,171,540 +2.5% .0% FY 2005 $16,372,735 + 1.2% .0% FY 2006 $16,192,215 - 1.1% + 1.7% FY 2007 $17,249,279 +6.5% - 5.4% Estimate Average FY 1989-2007 +1.81% - .42% .Without TI F Accounting change. Impact on Tax Askings and Average Residential Property To maintain the current level of service based on the previous assumptions would require the following property tax asking increases: "City" Property % I $ Impact on Avg. Year Tax Askinas (000) % Increase Residential Property" FY 2006 $16,192 FY 2007 $17,249 + 6.53% -5.44% 1-$ 27.44 FY 2008 $17,951 + 4.07% +2.37% I +$11.31 FY 2009 $18,668 + 4.00% +2.73% I +$13.35 . FY 2010 $19,680 +5.42% +3.70% I +$18.59 FY 2011 $20,701 + 5.19% +3.91 % I +$20.34 -203- FY 2007 Policy Guidelines Page I 9 Guideline The recommended guideline is no tax increase for the average residential property owner by lowering the rate in FY 2007 to give the average homeowner back $8.62 of property taxes to offset FY 2005 and FY 2006, and to leave unchanged the percent of annual gaming revenues going into the operating budget at 62.72 percent. Note: One percent increase in the tax rate will generate approximately $172,493. CIP BUDGET GUIDELINES 18. INTEGRATION OF CAPITAL RESOURCES Guideline In order to obtain maximum utilization, coordination and impact of all capital improvement resources available to the City, state and federal block and categorical capital grants and funds shall be integrated into a comprehensive five year Capital Improvement Program (CIP) for the City of Dubuque. 19. INTEGRITY OF CIP PROCESS Guideline The City should make all capital improvements in accordance with an adopted Capital Improvement Program (CIP). If conditions change and projects are to be added and/or deleted from the CIP, the changes shall be made only after approval by the City Council. 20. RENOVATION AND MAINTENANCE Guideline Capital improvement expenditures should concentrate on renovating and maintaining existing facilities to preserve prior community investment. -204- . . . FY 2007 Policy Guidelines Page 20 21. NEW CAPITAL FACILITIES Guideline Construction of new or expanded facilities which would result in new or substantially increased operating costs will be considered only if: 1) their necessity has been clearly demonstrated; 2) their operating cost estimates and plans for providing those operating costs have been developed; 3) they can be financed in the long term; and 4) they can be coordinated and supported within the entire system. 22. COOPERATIVE PROJECTS Guideline Increased efforts should be undertaken to enter into mutually beneficial cooperative capital improvement projects with the County, school district and private groups. Cost sharing to develop joint-use recreation facilities and cost sharing to improve roads and bridges are examples. 23. USE OF GENERAL OBLIGATION BONDS Discussion The Iowa Constitution limits the General Obligation debt of any city to 5 percent of the actual value of the taxable property within the city. The Iowa legislature has determined that the value for calculating the debt limit shall be the actual value of the taxable property prior to any "rollback" mandated by state statute. The FY 2005-06 taxable value for calculating the debt limit is $2,775,778,478, which indicates a total General Obligation debt capacity of $138,788.924. Outstanding G.O. debt (including tax increment debt) on June 30, 2006 will be $35,452,520 (25.5 percent) leaving an available debt capacity of $103,336,404 (74.5 percent). It should be noted that none of the City of Dubuque's outstanding debt is abated with property taxes, but from other revenues. As we approach the preparation of the FY 2007-2011 Capital Improvement Program (CIP) the problem is not our capacity to borrow money but (a) how to identify, limit and prioritize projects which justify the interest payments and (b) how to balance high priority projects against their impact on the property tax rate. -205- FY 2007 Policy Guidelines Page 2 1 Guideline There are many high priority capital improvement projects, which need to be constructed during the FY 2007-2011 period. Most of these projects will be possible without borrowing the money (Le., selling bonds) to help finance them. However, debt may be required on 3 major capital projects, that being the Drainage Basin Master Plan, Sanitary Sewer Fund, and Water Fund. In determining whether a project should be financed in total or in part from bond funds the City Council must consider and balance: (a) the community impact of not doing the project (poor streets, deteriorated park buildings, sewer problems, higher operating costs); (b) possible operating budget cuts to offset higher debt service payments; (c) anticipated interest rate; and (d) the impact on the tax rate and taxpayer of issuing the bonds. 24. ROAD USE TAX FUND Discussion Actual Road Use Tax Fund receipts are as follows: FY 1985 - $2,069,065 FY 1986 - $2,207,467 FY 1987 - $2,259,436 FY 1988 - $2,379,592 FY 1989 - $2,617,183 FY 1990 - $3,037,587 FY 1991 - $3,122,835 FY 1992 - $3,119,087 FY 1993 - $3,121,357 FY 1994 - $3,343,678 FY 1995 - $3,484,524 FY 1996 - $3,841,921 FY 1997 - $3,977,528 FY 1998 - $4,072,296 FY 1999 - $4,415,192 FY 2000 - $4,671,656 FY 2001 - $4,628,072 FY 2002 - $4,620,514 FY 2003 - $4,696,399 FY 2004 - $4,806,295 FY 2005 - $4,798,667 The FY 2006 budget was based on receiving $4,874,467 in Road Use Tax funds. In FY 2006, 78.3 percent of the Road Use Tax income is in the operating budget. Guideline It is preferable to shift Road Use Tax funds to the capital budget for street maintenance and repair to reduce the need to borrow funds for routine street maintenance and improvements. This shift cannot occur until such time as there is increased revenues or reduced expense that would allow this shift without a property tax impact. -206- . . . FY 2007 Policy Guidelines Page 22 25. COMMERCIAL AND INDUSTRIAL DEVELOPMENT Guideline Current City, commercial and industrial development efforts should be continued to (a) preserve current jobs and create new job opportunities and (b) enlarge and diversify our economic base. Financing these efforts and programs should continue to be a high priority for Community Development funding. 26. HOUSING Guideline In order to maintain an adequate supply of safe and decent housing, the City should strive to preserve existing single family and rental housing and provide opportunities for development of new housing within the City's corporate limits for all citizens, particularly for people of low and moderate income. 27. SALES TAX Guideline Thirty percent of projected sales tax receipts will be used for: (a) the reduction by at least 75 percent of street special assessments and (b) the maintenance and repair of streets. Twenty percent will be used for: (a) the upkeep of City-owned property such as sidewalks, steps, storm sewers, walls, curbs, traffic signals and signs, bridges and buildings and facilities (e.g., Airport, Five Flags Center, Library, Law Enforcement Center, City Hall, fire stations, parks and swimming pools); (b) Transit equipment such as buses; (c) riverfront and wetland development; and (d) economic development projects. 28. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE DUBUQUE RACING ASSOCIATION The contract with the Dubuque Racing Association calls for distribution at the end of its fiscal year, November 30th, of 40 percent (this was 50 percent, but changed with the new lease agreement on April 1 , 2004) of its net cash -207- FY 2007 Policy Guidelines Page 23 operating funds to the City of Dubuque. In mid-December, the City will receive an un-audited estimate of proceeds to be distributed. These proceeds will then be allocated beginning with the next fiscal year through the capital improvement process with the highest priority given to reducing the City's annual borrowing. This policy was changed in FY 2004 to allow for use of the proceeds to support the current capital improvement budget (versus the next fiscal year's budget). In addition, the Dubuque Racing Association provides the City with projections of future distributions since gaming is a highly volatile industry the estimates are discounted prior to including them in the City's Five Year CIP. One hundred percent of the January 2007 projections of operating surplus have been anticipated as resources to support the Fiscal Year 2007 capital improvement projects. This level will be maintained for the Fiscal Year 2008 surplus for the FY 2008 resource estimate and then reduced by 5 percent for the January 2009 projected surplus for FY 2009, 10 percent for FY 2010, and 15 percent for FY 2011 resources. Guideline In Fiscal Year 2007, the City anticipates distribution of a significant amount of net cash proceeds for use in the Capital Improvement Program. These amounts will be budgeted in the Five Year CIP in the year they are received and will be used to reduce required General Obligation borrowing. The three out-years will be discounted by 5 percent, 10 percent, and 15 percent respectively. 29. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING BUDGET EXPENSE Guideline Capital improvement expenditures that will reduce future maintenance and operating expense will receive priority funding and these types of initiatives will be encouraged in all departments and funding sources as a means of maximizing the use of available resources. This emphasis reflects fiscally responsible long range planning efforts. -208- . e . FY 2007 Policy Guidelines Page 24 30. USE OF GAMING RELATED RECEIPTS Guideline The amount of total gaming receipts from taxes and rent committed annually in support of the annual operating budget has historically been one-third of the total gaming tax and lease revenues. It was felt that a fiscally sound policy was to commit two thirds of the gaming revenues to the capital budget, thereby providing a cushion for future years, when gaming revenues could fluctuate with the local economy. Should gaming revenues begin to decline, the capital budget projects would be eliminated, deferred or funded from some other source if they were a high priority. The City has always tried to minimize dependence on gaming revenues in the operating budget. This was maintained over years, while still meeting the property tax guideline of no increase for the average residential property. However, FY 2004 brought new financing challenges including double-digit inflation in key areas (health costs, liability and property insurance, and electrical costs), a 20.5 percent increase in Police and Fire Pension costs, decreasing State revenues, and reduced sales tax projections. The FY 2004 guideline reflected the impact of the changes and included a change to a 50/50 split of gaming taxes and rents between the operating and capital budgets. The FY 2005 guideline again reflected increasing financing challenges and the split was recommended to change from 50/50 to 75 percent operating and 25 percent capital. This change reflects priority being given to maintaining current service levels in the operating budget and reduced resources in the capital budget. On April 1 , 2004, a new lease took effect with the Dubuque Racing Association for lease of the Dubuque Greyhound Park and Casino. This new lease was negotiated after the FY 2005 budget was approved and raised the lease payment from Y:.% of coin-in to 1 % of coin-in. This new lease and the expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000 gaming positions, effective August 1, 2005, allows the split between capital and operating expenses to be adjusted from 25% capital and 75% operating, to 37.28% capital and 62.72% operating in FY 2006. FY 2007 remains the same as FY 2006. -209-