Fiscal Year 2015 Recommended Budget Transmittal MessageMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2015 Budget Transmittal Message
DATE: January 28, 2014
Dubuque
bitetti
All- America City
1 I
2007 • 2012 • 2013
In 2006, Mayor Roy Buol and the Dubuque City Council adopted sustainability as the
City's top priority and that has been continued on an annual basis. While this has put
Dubuque among the international leaders for successful local governance models, the
important thing is what it has meant to Dubuque citizens.
For the first time in the history of this region, the Dubuque Metropolitan Statistical Area
exceeded 60,000 people working. The December 2013 number is 60,800! The
unemployment rate is 4.1%, about 61 % of the national unemployment rate of 6.7 %.
Dubuque's economy grew 5.1% in 2012 over 2011, the fastest growing economy in
Iowa, and the 27th fastest nationally, according to the U.S. Bureau of Economic
Analysis. This is more than double the national rate of 2.5% Gross Domestic Product
growth.
With just 3% of the state's population, Dubuque has added nearly 8% (5,200) of the
state's new jobs from 2010 -2013. The 5,200 jobs is a 9.35% growth in jobs for
Dubuque, a higher percentage increase than any other community in Iowa, with the next
fastest job growth being in Iowa City at 6.98 %.
According to the U.S. Census Bureau, the average household income in Dubuque rose
from $27,027 in 1990, to $40,680 in 2010, a 50% increase, exceeding the rate of
inflation.
The average hourly wage from 1991 to 2013 grew from $9.56 to $18.86, also exceeding
the rate of inflation.
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515 u0
516 00
14 00
51200
510 00
$8.00
1990
Average Hourly Wage in Dubuque County from 1991 -2013
1995
2000
2005
- Average Wage (Nominal) - Average Wage (Inflation - adjusted 2013 dollars)
$18.86(2013)
2010 2015
Source: Iowa Economic DevelepmentAuthodty. Inflation adjustment applied using the CPI- W price index for December .2023.
The Federal Housing Finance Agency recently released home appreciation statistics.
The change in the Metropolitan Area House Price Index over the last five years through
the third quarter of 2013 is as follows:
Dubuque Up 9.71%
Sioux City Up 8.83%
Waterloo Up 6.28%
Iowa City Up 5.32%
Quad Cities Up 3.93%
Metro Area Average Up 3.74%
Cedar Rapids Up 1.33%
Council Bluffs Up 1.02%
U.S. National Average Up 0.15%
Des MoinesNVest Des Moines Down 0.5%
Chicago Down 18.56%
2
COMPARABLE CITIES
IOWA HOME PRICE APPRECIATION
Change in FHFA Metropolitan Area House Price Index
Five Year Average through 2013 -Q3
Dubuque
Sioux City
Waterloo
Iowa City
Quad Cities
Metro Area Average
Cedar Rapids
Council Bluff
U.S. National Average
Des Moines /W.Des Moines
1.33%
1.02%
• 0.15%
3.93%
3.74%
— -0.50%
PERCENTAGE OF APPRECIATION
5.32%
6.28%
8.83%
9.71%
Dubuque citizens are seeing more employment opportunities, rising wages and
rising home values.
The percentage change in assessed valuation from 2009 -2013 compared to other cities
in Iowa is as follows:
4% -
2% -
0°%
9.05%
8.08%
5.40%
3.26%
10.93%
8.22%
8.41%
7.44%
i
6.14%
.r a c c tie c� o � g e
rga
-2% P y 143 ,mo •+ a
m5
4ea co °c O �O
-6 °%
3
Recent findings from the Equality of Opportunity Project show that children raised in
Dubuque are among the most likely in the nation to be upwardly mobile. The study,
conducted by researchers at Harvard University and the University of California,
Berkeley, found that children who were born in Dubuque to parents in the nation's
lowest income quintile had a 17.9% chance of being in the highest income quintile
before reaching age 30. This is well above the national average of 10.6% and, of the
741 metropolitan commuting areas examined, places Dubuque in the top 60, or 8 %.
When compared to similar -sized commuting areas with a population between 150,000
and 200,000, Dubuque ranks first out of 58, and by a sizeable margin; Dubuque's
17.9% likelihood is 2.1 % greater than the next - highest probability, and is nearly double
the national average of 9 %. Dubuque ranks first among the ten largest cities in Iowa,
also, with nearly a 3% higher probability than the next - highest city at 14 %.
These findings are significant because they highlight the exemplary role that Dubuque
plays in both creating opportunities for children and young adults, and in enabling them
to attain success.
MSN.com recently posted the 10 cities with the largest job decline over the last year.
Any time you think Dubuque's success is similar to that of other Midwest cities, you can
look at information like this. Three of the cities were Midwest cities, two in close
proximity to Dubuque.
Decatur, Illinois, has a population of 75,407. The Decatur metropolitan area has an
11.7% unemployment rate. There were roughly 50,800 non -farm jobs in the metro area
as of October 2013, down from 53,100 one year earlier, for a 4.3% decline in
employment. It is even more pronounced in manufacturing, where employment has
declined 16 %. Also, agricultural processing giant Archer Daniels Midland has
announced plans to move its global headquarters and top executives out of the area.
The Chicago Tribune reported that "Among the reasons the company offered for moving
its headquarters was its need for, 'an environment where we can attract and retain
employees with diverse skills, and where family members can find ample career
opportunities."
Peoria, Illinois, has a population of 115,687. The Peoria metropolitan area has an 8.7%
unemployment rate, 1% higher than the year before. There were 183,700 non -farm
jobs in Peoria in October 2013. This is 4,100 less than the year before, a 2.2% decline.
Manhattan, Kansas, with a population of 56,069, is the home of Kansas State
University. The Manhattan metropolitan area has struggled to grow jobs in recent
years. The unemployment rate in October 2013 was 4.7 %, up from October 2012. The
number of non -farm jobs has declined 3.5% in that period to 57,100 total non -farm
jobs.
Dubuque had 1.35% job growth during this same period, an increase of 800 jobs.
4
Looking at just development agreements executed by the City with private companies in
2013, Dubuque will get 280 new jobs, $64 million in new capital investment and
approximately 105,000 square feet of new non - residential construction, over the next
year.
Dubuque's resurgence from the desperate times that began in the 1970s and the 1980s
are in sharp contrast to what has happened to these other nearby cities:
City
1970
Population
2010
Population
% Change
Gary, IN
South Bend, IN
Flint, MI
175,415
125,580
193,317
80,294
75,065
102,434
- 54.2%
- 40.2%
- 47.0%
Detroit, MI 1,511,482 713,777 -52.8%
Akron, OH 275,425 199,110 -27.8%
Cincinatti, OH 452,524
Cleveland, OH
750,903
296,943 -34.4%
396,815
- 47.2%
Dayton, OH 243,601 141,527 41.9%
Toledo, OH
383,818
287,208
-25.2%
Youngstown, OH 139,788 66,982 -52.1%
Comparing the Dubuque unemployment rate with the U.S. unemployment rate annually
since 1980 would indicate that the City is weathering the economic downtown better
than others and better than the City did in the past, indicating that the City is well
positioned to benefit from an economic recovery.
5
Historical Chart - Unemployment Rate
1980 -2013
Annual Unemployment Rate
Year Dubuque United States Difference
1980 8.6 7.1 +1.5
1981 10.7 7.6 +3.1
1982 14.2 9.7 +4.5
1983 12.1 9.6 +2.5
1984 8.5 7.5 +1.0
1985 9.6 7.2 +2.4
1986 7.8 7.0 +0.8
1987 6.1 6.2 -0.1
1988 5.5 5.5 0.0
1989 6.0 5.3 +0.7
1990 5.9 5.6 +0.3
1991 6.1 6.8 -0.7
1992 5.5 7.5 -2.0
1993 4.1 6.9 -2.8
1994 3.7 6.1 -2.4
1995 3.7 5.6 -1.9
1996 5.8 5.4 +0.4
1997 3.9 4.9 -1.0
1998 3.2 4.5 -1.3
1999 2.7 4.2 -1.5
2000 3.3 4.0 -0.7
2001 3.7 4.8 -1.1
2002 3.5 5.8 -2.3
2003 4.2 6.0 -1.8
2004 4.5 5.5 -1.0
2005 4.4 5.1 -0.7
2006 3.8 4.6 -0.8
2007 4.0 4.6 -0.6
2008 4.3 5.8 -1.5
2009 6.1 9.3 -3.2
2010 6.3 9.6 -3.3
2011 5.5 8.9 -3.4
2012 4.9 8.1 -3.2
2013 4.5 7.4 -2.9
From 1980 to 1990, the Dubuque unemployment rate was less than the national
unemployment rate only once. Since 1991, the Dubuque unemployment rate has been
lower than the U.S. unemployment rate 23 of those years, with only one (1996) being
higher by 0.4 %. The national unemployment rate for 2013 was 7.4% and the Dubuque
rate was 4.5%
6
In 2013 and 2014, Dubuque was the beneficiary of several recognitions.
Considered the academy award of civic engagement, Dubuque for the third time (2013,
2012 and 2007) in six years was recognized as an All- America City by the National
Civic League. This is the premier local government recognition program in the country,
and in the 64 -year history of the award, I believe that this is the first time a community
received the award three times in such a short period of time.
The City of Dubuque was also recognized by American City and County Magazine for
the Water & Resource Recovery Center project as a Crown Community for the third
time (2003, 2009 and 2013). Forbes designated Dubuque 14th in the Nation for "Best
Small Places for Business and Careers" and #50 among 179 small cities for "Cost of
Doing Business."
The Milken Institute selected Dubuque as the "10th Best Performing Small Metro."
Site Selection magazine ranked Dubuque #5 for Top Metropolitan Areas among metros
with a population under 200,000.
Kiplinger's Personal Finance named Dubuque one of "10 Great Places to Live."
The Harvard Kennedy School Ash Center for Democratic Governance and Innovation
picked Smarter Sustainable Dubuque as one of the "Top 25 Innovations in
Government."
The Equality of Opportunity Project by Harvard University and the University of
California, Berkeley ranked Dubuque in the top 60 in the nation for upward mobility.
The U.S. Department of Commerce Bureau of Economic Analysis ranked Dubuque the
fastest growing economy in Iowa and the 27th fastest growing nationally.
Farmer's Insurance designated Dubuque the "10th Most - Secure Small City in the U.S."
Movoto Real Estate proclaimed Dubuque #14 for "America's Best Small Cities to Move
To."
Mayor Roy D. Buol received some significant individual recognition over the last year.
In the annual PA Times publication from the American Society of Public Administration,
the Public Service Supplement recognized individuals who are serving as role models in
public service. Of the 14 individuals recognized in 2013, Mayor Buol was the only
elected official.
Mayor Buol was also recognized by the U.S. Conference of Mayors and Americans for
the Arts with the 2014 Public Leadership in the Arts Award for Local Arts Leadership for
cities with a population of less than 100,000.
7
Mayor Buol was selected as co- chairman of the Mississippi River Cities & Towns
Initiative (MRCTI) along with the Mayor of Memphis, Tennessee. The MRCTI is a
mayoral -led effort to bring national attention back to the Mississippi River and
spearhead a new level of regional cooperation to make it more sustainable.
Dubuque was featured in several publications this year. The Sustainable Cities Institute
of the National League of Cities published a piece titled, "Dubuque Gets Engaged: The
Critical Role of Partnerships in Moving Sustainability Forward."
The National League of Cities featured Dubuque in a Municipal Action Guide,
"Reconnecting Youth through Dropout Reengagement Centers."
The Sustainable Cities Collective published an article titled "Move to Dubuque, Not San
Francisco."
Governing magazine published an article titled "Corporate Entrepreneurs Are at the
Heart of Downtown Revitalizations (The Dubuque Story)," by Alan Greenblatt.
Dubuque was featured in a Huffington Post blog by Michele Hunt, titled "DreamMakers
Creating Sustainable Communities. Dubuque Iowa - surprised? So was I!"
Over the last year, Mayor Buol and others continued efforts to spread the word about
Dubuque. They were willing to sacrifice their time, the thing that is most precious to us
all, and deal with the many inconveniences of travel to continue to market Dubuque.
The City has also had the following national and international exposure in 2013 and
2014:
International presentations
Name of participant
Event
Date
Location
Sponsor
Mayor Buol
Smart Cities Canada Summit*
January 23 - 25, 2013
Toronto Canada
Strategy Institute
*Mark Seckman of GDDC also attended this at the request of the City of Dubuque
International Exchange /Fellowships
ICMA Delegates hosted in Dubuque
Name of participant
Event
Date
City /Country
Sponsor
Mr. Yigang Feng
ICMA Fellowship
Oct 18 • Nov 3, 2013
Changsha, Hunan, China
ICMA
Mr. Peter Ridge
ICMA Fellowship
Oct 18 • Nov 3, 2013
Palmerston North, New
Zealand
ICMA
Irina Koleva
Project ABLE (American
Bulgarian Library Exchange)
2006
Sofia, Bulgaria
American Bulgarian
Library Exchange
City staff that have traveled abroad as an ICMA Fellow:
Name of participant
Title
City /Country visiting
Date
Sponsor
Susan Henricks
Library Director
Sofia, Bulgaria
2006 &June 2013
Project ABLE
Kelly larson
Human Rights Director
Changsha, Hunan, China
Feb /March 2014
ICMA
Chris Kohlmann
Information Services Manager
New Zealand
Feb /March 2014
ICMA
8
Delegates /Delegations
Delegate /Delegation City Visiting Dubuque
Date
Purpose
Delegate representatives
Dornbirn, Austria
May 12. 14, 2013
Sister City exchange
Mayor Buol, Kevin Firnstahl
& Local Delegates
Handan, China
August 27 - 29, 2013
Sister City exchange
Dignataries from Handan
Local Government
Handan, China
October24, 2013
State of Iowa visit
Dignataries from Handan
Local Government
Hitachi Corporation
March 19, 2013
SSD site visit
Mr. Hirasaw & Mr Tsuchiya
Fukushima Japan
October 16, 2013
SSD site visit
Fukushima Prefecture
Congress representatives
Nigeria
December 12, 2013
MCFC
Nigerian Ambassador
GeoffreyTeneilabe
Dubuque Sister City Visit
Sister City name
Date
Purpose
Delegate representatives
National presentations
Name of participant
Event
Date
Location
Mayor Buol
New Partners for Smart Growth
February 8 -9, 2013
Kansas City, Mo
Mayor Buol
Mississippi River City & Towns
Initiative
March 2013
Washington, DC
Michael Van Milligen
IBM Connect 2013 Conference
January 27-31, 2013
Lake Buena Vista, FL
IBM
Michael Van Milligen
2013 Minnesota City /County
Managers Conference
May 1 -3, 2013
Nisswa, MN
Minnesota City/
County Management
Michael Van Milligen
League of Minnesota Cities
Centennial Conference
June 21, 2013
St. Paul, MN
League of Minnesota
Cities
Laura Carstens
New Partners for Smart Growth
February 8 -9, 2013
Kansas City, Mo
Laura Carstens
National Main Streets
Conference
April 14, 2013
New Orleans, LA
Laura Carstens
Ground Partnership Annual
Conference
May 21, 2013
Gettysburg, PA
John Klosterman
Association North American
Snow Conference
April 8, 2013
Charlotte, NC
Jon Dienst
International Low Impact
Design Symposium
August 21, 2013
St. Paul, MN
Dean Mattoon
Mayors Innovation Project
June 29, 2013
Chicago, III
Affirmation of the leadership role the City of Dubuque is taking on internationally
includes the previous invitations Mayor Buol received to speak around the world. He
has spoken at a Brookings Institution conference in Washington, D.C.; IBM conferences
in Arizona and New York; the Global Smart City Summit in Taiwan; National League of
Cities events in Sweden and Germany; the Texas Municipal League Annual Conference
in Grapevine, Texas; the World Cities Summit in Singapore, which had over 18,000
attendees, the Smart City Summit in Toronto, Canada, and at the New Partners for
Smart Growth Conference in Kansas City, where he was invited to conduct three
separate breakout sessions. These presentations are at no cost to the City as the event
sponsors covered the costs.
The City's successes, recognitions and ability to perform on innovative projects have
also led to the City getting access to outside funding sources. In 2013, the City
achieved outside funding of $246 million from partnering with others, to include:
9
Outside Funding Brought Into the City of Dubuque in 2013
Name /Grant Source
Amount
Linseed Oil Building /State Community Development Block Grant
$2,200,000.00
Southwest Arterial /Iowa Department of Transportation
$140,000,000.00
Bee Branch Watershed Project /Iowa Department of Revenue
$98,500,000.00
Lead Abatement Grant/DuPont
$50,000.00
Digitize City Directories /Historical Resource Development Program
(HRDP)
$2,970.00
Digitize City Directories /Annual Grant Program (from Dubuque Old House
Enthusiasts)
$1,500.00
Northwest Arterial Trail /Resource Enhancement and Protection (REAP)
Grant Program
$200,000.00
Update Design Guidelines /Dr. Frank Henry Landes Preservation Fund for
Iowa /National Trust for Historic Preservation
$5,000.00
Catfish Creek Management Plan/Watershed Management Authority
Planning Grant (Phase II) /Iowa Economic Development Authority
$187,330.00
Smart Transit (for Night Rider and Midtown Loop) /Iowa Department of
Transportation /Federal Highway Administration
$614,105.00
Shopping Circulator /Iowa Department of Transportation
$187,836.00
Traffic Safety Grant/lowa Department of Transportation
$478,750.00
Brownfields /Environmental Protection Agency
$400,000.00
Caradco /Community Development Block Grant
$1,299,000.00
Iowa Department of Natural Resources
$79,374.36
Airport Terminal /Federal Aviation Administration
$1,987,313.00
Airport Entry Improvements /State Iowa Department of Transportation
$108,456.00
TOTAL
$246,301,634.36
With all this success comes a significant need for workforce development. In 2013, the
City Council decided to support Inclusive Dubuque with a $75,000 per year contribution.
Inclusive Dubuque is a local initiative focused on creating a vibrant and welcoming
community to ensure the region's success today and into the future.
For the past two years, leaders from the business, education, nonprofit, faith, and local
government sectors have been meeting to discuss diversity and inclusion in Dubuque.
Together they created a broad vision for our community that includes:
• A Welcoming Community — an environment in which all people feel respected,
valued, and engaged
• Quality of Life — everyone has access to resources and can enjoy a sense of
well -being and belonging
• A Strong Economy and Workforce — that attracts and retains global talent to
position the community for continual economic growth
• A Culturally Competent Education System — learning by honoring one's own
culture and valuing other cultures through civility, compassion, and respect
• Open Communication — a culture focused on respecting and understanding all
perspectives while seeking common ground
10
• An Engaged Community — open exchange of ideas and opportunities that
contribute to an inclusive community
There are many benefits including economic development, a home -like environment,
promotion of equality, and safeguarding fairness.
As Dubuque grows and becomes a part of a global economy, we need to adapt and
welcome the students and workforce of the future. As our community experiences
continually changing demographics, embracing people of all races, religions, genders,
and educational backgrounds will help us to succeed in the 21 st century marketplace.
According to the Center on Education and the Workforce's forecast for 2018, 30 million
new and replacement jobs in the U.S. will require some college or more. However, U.S.
colleges and universities are only expected to produce 20 million graduates. There will
be intense competition for a qualified workforce and we must create an environment
where local college graduates, our children, and our grandchildren want to stay for the
opportunities available here.
In 2012, Dubuque was identified as the sixth brainiest metropolitan area in the country.
There are currently over 322,000 college students living within 100 miles of Dubuque
and these colleges turned out 54,000 graduates in 2012. We want to be the type of
community where they will want to live after they graduate.
I recently read an article entitled "Where You'll Want to Live in 2032," which
summarized a Gallup analysis. It concluded that the best place to live in 20 years will
have tackled unemployment, financial worry, healthcare costs, obesity, and education
challenges. It will be a place where "most residents are healthy, optimistic, employed in
good jobs they love, and enthusiastic about their communities." The study identified the
West North Central Region (Iowa, Kansas, Minnesota, Nebraska, North Dakota, and
South Dakota) as the region poised for the brightest future. As Dubuque leads the
country out of the recession and beyond, Mayor Buol and the Dubuque City Council are
setting the tone and creating the atmosphere to ensure Dubuque remains a community
where you want to live today and in 2032.
Like most communities, Dubuque has changing demographics. How we respond to
those changes will determine Dubuque's future success. These changes offer the
opportunity to share, learn, and grow from our individual experiences, connect with
people, and strengthen our community.
Initial Inclusive Dubuque partner organizations include:
Alliant Energy
City of Dubuque
Clarke University
Community Foundation of Greater Dubuque
Diamond Jo Casino
Dubuque Area Chamber of Commerce
11
Dubuque Area Congregations United
Dubuque Area Labor Management Council
Dubuque Community School District
Dubuque Racing Association
Greater Dubuque Development Corporation
Hormel /Progressive Processing
IBM
John Deere
Loras College
Medical Associates
Multicultural Family Center
Mystique Casino
NAACP - Dubuque Chapter
Northeast Iowa Community College
Prudential Retirement
Tri -State Independent Physicians
University of Dubuque
University of Wisconsin - Platteville
Inclusive Dubuque is an important part of the community's workforce development
strategy. In 2013, for the first time, Dubuque employeers, through the annual interviews
of over 250 CEO's by the Greater Dubuque Development Corporation, identified a
shortage of qualified workers as the biggest impediment to future growth.
According to the 2010 U.S. Census, the median age in Dubuque is 38 years old
(compared to 37.2 years old, nationally). Dubuque is about to start experiencing this
tsunami of retirements of the Baby Boom generation.
Futurist Rebecca Ryan of Next Generation Consulting uses Canada as an example. If
in 2020 every Canadian age 18 -99 was in the workforce, they would still be short four
million employees.
Without an effective strategy to have our children, grandchildren and local college
graduates want to work in Dubuque, and without the ability to make Dubuque an
attractive place for people to move to, the employment base will cease to grow. Without
employees, local companies will expand elsewhere and new companies will cease
coming to Dubuque, starting a long, slow decline.
Inclusive Dubuque, Sustainable Dubuque, Opportunity Dubuque, Circles,
DubuqueWorks, planning efforts and other programs, including community
enhancement programs, are the keys to Dubuque's future workforce development
success.
The foundation of the City's success is the annual goal- setting process by the Mayor
and City Council.
12
Each year, the Dubuque City Council completes its annual goal- setting sessions. Over
the course of two days in August, City Council members reaffirmed the 15 -year vision
statement, mission statement, and developed priorities for a 2013 -2015 policy agenda.
2028 VISION STATEMENT
The City of Dubuque is a progressive, sustainable city with a strong diversified economy
and expanding global connections. The Dubuque community is an inclusive community
celebrating culture and heritage and has actively preserved our Masterpiece on the
Mississippi. Dubuque citizens experience healthy living and retirement through quality,
livable neighborhoods with an abundance of fun things to do; and are engaged in the
community, achieving goals through partnerships. Dubuque City government is
financially sound and is providing services with citizens getting value for their tax dollar.
CITY MISSION STATEMENT
The City's mission is to deliver excellent municipal services that support urban living
and a sustainable city plan for the community's future and facilitate access to critical
human services which result in financially sound government and citizens getting
services and value for their tax dollar.
FIVE -YEAR COMMUNITY GOALS FOR A SUSTAINABLE DUBUQUE
• Economic Prosperity
• Social /Cultural Vibrancy
• Environmental Integrity
FIVE -YEAR CITY GOALS
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Improved Connectivity — Transportation and Telecommunications
FIVE -YEAR ORGANIZATIONAL GOAL
• Financially Responsible City Government and High Performance Organization
POLICY AGENDA 2013 -2015
Top Priorities On alphabetical order)
• Annexation: Direction on specific actions a) study implementation, b) corridor to
Airport
• Arts and Culture organizations city support: Evaluation, potential projects review
and priority, overall direction, funding level
• Dubuque welcoming, inclusive community: Action plan
• Four Mounds Foundation /HEART program city support
• Management and Employee Succession Planning and Funding
• Master Plan for Chaplain Schmitt Island: Development
• Safe Community Initiative: Monitoring, future direction, specific actions
• Washington Neighborhood Strategy: Business attraction, HEART program,
update housing stock, homeownership, promotion, police substation
13
High Priorities On alphabetical order)
• Bee Branch Project: Specific projects, direction, funding
• Clean Air Attainment Strategy
• Greater Dubuque Development Corporation support
• Historic Millwork District: Development, project monitoring
• Indoor Aquatic Center: Direction
• Riverfront Leases: Agreement
• Smarter City: Smarter health and wellness, smarter travel, smarter discards
• Southwest Arterial Project: Design, land acquisition, intersecting roads
MANAGEMENT AGENDA 2013 -2015
Economic Prosperity Goal
• Dubuque Initiatives: Next Step
• Workforce Market -Rate Housing
• Marina Store: Operational
• Project HOPE
Environmental /Ecological Integrity Goal
Sustainability Purchasing Policy and Procedures
• Automatic Vehicle Location (AVL) for Transit
• Grand River Center Electric Meters Project
• City Operations: Sustainability Performance Measures
• Sustainable Dubuque Community Grant
• America's River III Task Force
• Plastic Bag Reduction Strategy: Implementation
• Fats /Oils /Grease: Policy, Program and Enforcement
• Dubuque Metropolitan Area Solid Waste Agency (DMASWA) 28E Agreement:
Evaluation
• Community Climate Action & Resiliency Plan -50% Greenhouse Gas Reduction
by 2030: Implementation
Social /Cultural Vibrancy Goal
• City Workforce Diversity: Recruitment and Selection
• Territory Accountability Design: Targeted Actions
• Multicultural Family Center Building Expansion
• Intercultural Competency Program within City Government: Self Assessment,
Training
• Intercultural Competency Program for the Community: Marketing to School
District, Nonprofit and Community Organizations, Businesses
• Police /Race Dialog
• City Life: Implementation
• Local ADA Compliance Program
• Leadership Enrichment After School Program (LEAP)
• Firefighter Internship for Recruitment of Diverse Workforce
• Racial Profiling: Problem Analysis, Action Plan
• Community Engagement Strategy: City Actions
14
Planned & Managed Growth Goal
• Inflow and Infiltration Program /Home Inspections: EPA Consent Decree
Implementation
• City Comprehensive Plan: Update
• Flood Wall: Funding, Evaluation, Cell Protection
• Statewide Urban Design and Specification City Engineering Standards (SUDAS)
City Engineering Standards: Update
• Washington Street Row House Units: Sale
• Historic Preservation Program: Evaluation, Update
• Downtown Loan Program: Implementation
• West Third Street Reservoir Study
• Housing Choice Voucher Program
• Water and Sewer Service Extension to City Residents and Businesses
Partnering for a Better Dubuque Goal
• Parks /Schools Joint Projects and Services: City Actions
• City Volunteer Program: Development
• Sister City Program: Delegation to Potential City
• Veterans Memorials: Direction
• Handicap Accessibility for Parks: Direction
• Bridges Out of Poverty Program: City Support
Improved Connectivity: Transportation and Telecommunications
• Smart Transportation Program
• Traffic Signal Synchronization: Citywide
• Amtrak Train Platform (Port of Dubuque): Funding
• Roundabout: ROW Acquisition a) University /Asbury; b) Radford /Pennsylvania
• Intermodal Transportation Facility in Historic Millwork District
• Air Traffic Control Tower: Funding
Financially Responsible City Government and High Performance Organization
• Website Content Management (CivicPlus)
• 900 MHz Data System: Expansion
• Employee Wellness Program: Five -Year Goals, City Internet Posting
• Employee Involvement Teams: Expansion
• Healthcare Cost Containment
• Police Officer Recruitment and Retention
• Records Management and Retention
• City Hall Protocol and Safety
• New Computer -Aided Drafting (CAD) Software
• Emergency Police Dispatch and Emergency Fire Dispatch
• New Fire Pumper
• Disaster Preparedness and Recovery Plan: Discussion
• Environmental Sustainability Management System (ESMS): ISO 14001 Model
Program
• Affordable Care Act: Analysis of Impacts
15
Major Projects
• State Revolving Fund (SRF) Green Alley Projects
• Port of Dubuque Park: Development
• City Greenhouse Project
• Water & Resource Recovery Center Project
• Locust and Iowa Ramps: Renovation Project
• North Softening Basin Renovation Project
• Comiskey Park Improvements
• Northwest Arterial Trail — Bergfeld Recreation Trail Connection
• Bunker Hill Golf Course Irrigation Improvements
• Airport Terminal Project
• Elm Street Reconstruction Project
• One Way — Two Way Conversion Project
• Cedar Cross Road: Design
• Wacker and JFK Traffic Signalization Project
• North Cascade Road: Design
• White Street Traffic Signal and Improvements Reconstruction (at 14th and 20th)
• US 20 /Fremont Avenue Traffic Signal: Upgrades
• NW Arterial /Chavenelle Intersection Improvement Project
The foundation of the community's success is Sustainable Dubuque.
"Dubuque is a viable, livable, and equitable community. We embrace economic
prosperity, social /cultural vibrancy and environmental integrity to create a sustainable
legacy for generations to come."
These 12 principles guide government, business, non - profit, and individual actions in
Dubuque. Community planning documents including the Comprehensive Plan, Long -
Range Transportation Plan, Comprehensive Economic Development Strategy, and
many others are guided by this sustainability framework:
• Community Design - The built environment of the past, present and future which
contributes to its identity, heritage and sense of place.
Smart Energy Use - Energy conservation and expanded use of renewable
energy as a means to save money and protect the environment.
Resource Management - The benefits of reducing, reusing and recycling
resources.
Regional Economy - A diversified regional economy with opportunities for new
and green markets, jobs, products and services.
• Green Buildings - A productive and healthy built environment.
• Community Knowledge - Education, empowerment and engagement to achieve
economic prosperity, environmental integrity and social /cultural vibrancy.
Healthy Local Foods - The benefits of wholesome food from local producers,
distributors, farms, gardens and hunters.
Community Health and Safety - Systems, policies and engagement to ensure
that all residents have access to healthy and safe lifestyle choices.
16
• Reasonable Mobility - Safe, reasonable and equitable choices to access live,
work and play opportunities.
• Healthy Air - Fresh, clean air, reduced greenhouse gas emissions and minimized
health risks.
• Clean Water - Water as the source of life, seeks to preserve and manage it in all
forms.
• Native Plants & Animals - Biodiversity through the preservation, restoration and
connection of nature and people.
The City of Dubuque continues to be a leader in creating a sustainable community and
has been recognized as an International Model as a result of the Smarter Sustainable
Dubuque partnership with IBM Research and a national model for the Sustainable
Dubuque initiative, which includes the annual Growing Sustainable Communities
Conference.
September 2013 marked the sixth successful year of hosting this near zero -waste
conference. The purpose of this conference, as originally envisioned by Mayor Buol,
was to create a venue that would bring together policy decision makers, businesses,
institutions, organizations and citizens every year to get up -to -date research on
sustainability and best practices, to raise the level of awareness of issues impacting our
communities and help understand issues that serve as barriers to sustainability, and
provide a venue to seek solutions.
What started out in 2007 as a half -day event first sponsored by the City of Dubuque and
Rockefeller Brothers Fund, is now a two -day event that last year drew nearly 500
attendees who came from 111 different cities in 20 states as well as international
attendees. While there are other sustainability venues, few, if any, are organized by a
local government with the intent to provide a forum for peer -to -peer learning based upon
real experiences and relevant best practices. Dubuque's conference provides just such
an opportunity, showcasing state -of- the -art equipment from local and national providers,
offering a choice among dozens of break -out sessions, mobile workshops and featuring
nationally -known speakers, including this year's keynotes Michele Hunt, author of
Dreammakers; Rebecca Ryan, futurist, author and founder of Next Generation
Consulting; and Deb Frodl, Global Director for GE's Ecoimagination division.
Family Self- Sufficiency (FSS) is a HUD program for Housing Choice Voucher Program
participants. The program encourages communities to develop local strategies to help
voucher families obtain employment that will lead to economic independence and self -
sufficiency. The City of Dubuque is expanding its Family Self- Sufficiency Program by
incorporating and including the Circles Initiative programs, which promote economic
empowerment and assist families in creating their own personal paths out of poverty,
expanding opportunities, making connections, and eliminating barriers within the
community and their families.
In 2013, three City of Dubuque FSS coordinators worked with 153 families, meeting
monthly to provide support services including financial and homeownership counseling,
17
job search and retention training, and resource referral to prepare them for economic
self - sufficiency, including the possibility of homeownership.
The Circles Initiative is part of an innovative national movement that connects
volunteers and community leaders to families wanting to make the journey out of
poverty. Volunteer Allies help families break the cycle of poverty by sharing their time
and friendship. There are barriers that keep even the most motivated from achieving
prosperity, but Circles breaks down these barriers by expanding opportunity and
support for families as they create their own paths to stability. Circles encourages
growth from people of all financial classes and engages the community as a whole, so
we can work together to create deep and lasting change in Dubuque.
Project HOPE, a partnership with the Community Foundation of Greater Dubuque,
Greater Dubuque Development Corporation, and Northeast Iowa Community College, is
designed to serve as a catalyst that helps service providers, employers, and job seekers
connect to create opportunity for long -term employment.
Dubuque's Green Alley Program, partially funded by CDBG, uses interlocking,
permeable pavers to assist in infiltration of stormwater, reducing flooding and improving
quality of water entering the Mississippi River.
The Housing and Community Development Department also facilitates the City's Urban
Revitalization Program, which focuses on the revitalization of properties in Dubuque's
older neighborhoods. Owners of residential property in Dubuque's designated urban
revitalization areas are eligible to apply for a 10 -year property tax exemption for
qualified new improvements.
The Purchase of Service Grant Program is designed to provide support for human
service programs in Dubuque that further the City's goals, objectives, and priorities.
Non - profit organizations that provide year -round human services programs are eligible
to apply.
Community development is extremely important to Dubuque's continued economic
prosperity, environmental integrity, and social and cultural vibrancy. We continue to do
our best to provide quality, livable neighborhoods.
The Housing and Community Development Department has an ongoing partnership
with the Four Mounds Foundation HEART (Housing Education And Rehabilitation
Training) Program to rehabilitate residential properties in preparation for sale to first -
time homebuyers. To date, 24 properties have been renovated through this
partnership. The HEART Program provides hands -on training and programming for at-
risk and disengaged youth. Participants are revitalizing the community while working
toward post- secondary education, developing viable careers, and becoming better
leaders.
18
The Washington Neighborhood Development Corporation (WNDC) works in
collaboration with the Housing & Community Development Department to build
awareness and educate current and potential residents about housing programs and
incentives offered in the Washington Neighborhood.
Community Housing Initiatives (CHI) has committed $800,000 to partner with the City of
Dubuque to continue rehabilitation efforts and promote homeownership opportunities
within the Washington Neighborhood. These funds will be used for acquisition,
rehabilitation and resale of approximately 18 homes.
The Green and Healthy Homes Initiative (GHHI) is working collaboratively across
jurisdictions and silos of funding to identify and remove barriers in order to achieve
holistic, household- centric approaches to improving health, safety, livability and
affordability of housing in Dubuque. The Initiative identifies citizens' needs in their
homes, helps them address the needs, and assists residents learning how to maintain
and sustain the improvements. Key partners are the City of Dubuque Housing and
Community Development Department, Community Foundation of Greater Dubuque,
City Health Services Department, Operation New View, Visiting Nurses Association,
Northeast Iowa Community College, and the U.S. HUD Department, which provides
funding through the Lead Hazard Control and Healthy Homes Production Grants.
At the same time Dubuque is achieving economic success, Dubuque is becoming an
even safer place to live. In 2011, Iowa was named the "ninth most peaceful state"
based on rankings drawn up by the Institute for Economics and Peace, an international
researcher that also issues a yearly Global Peace Index. The index defines peace as
"the absence of violence."
Crime numbers are improving for Dubuque and have been since 2007.
Performance Measures
"Part P" Crimes for Calendar Years 2002 -2013
Compiled by the Dubuque Police Department
CY13 % CY13 %
Over/Under Over/Under
CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 Avg. Average Peak Year
No. of Grim es Against Persons
117
109
95
118
121
149
122
118
75
124107"
208"
131
58.8%
0.00%
Murder
1
1
1
1
0
1
0
2
1
1
2
0
1
- 100.0%
- 200.00%
Sexual Assault
65
52
41
48
61
72
54
43
38
43
43
38
50
-24.0%
-47.22%
Robbery
13
20
12
14
19
40
31
35
36
33
21
32
26
23.1%
-20.00%
Aggravated Assault
38
36
41
55
41
36
37
38
24*
47
120**
138**
54
156.0%
0.00%
No. of Crim es Against Property
2137
2080
2,119
1,996
2,084
2,327
2,284
2,067
2,038
1,913'
1,992
1,791
2,069
-13.4%
- 23.03%
Burglary
454
422
464
437
501
669
526
519
503
455
583
431
497
-15.3%
- 35.58%
Burglary to Motor Vehicle
308
389
389
276
370
366
510
420
399
406
298
231
364
-36.5%
- 54.71 %
Theft
1264
1185
1,176
1,239
1,151
1,229
1,185
1,072
1,102
1,020
1,080
1,103
1,151
-4.2%
- 10.98%
Theft of Motor Vehicle
111
84
90
44
62
63
63
56
34
32
31
26
58
-55.2%
- 71.11
Total
2254
2189
2,214
2,114
2,205
2,476
2,406
2,185
2,113
2,037
2,099
1,999
2,191
-8.8%
- 18.98%
'Aggrmated Assaults: Calendar year CY1 0 inco porated a correction in he method for repotting Aggravate Assaults to the Uniform Crime R ports (UCR) to comply with the Fe eral UCR rules. The former reporting method would have
shown 53 aggravated assaults. The 29 assault ifrerence was due to a eclassied of simple assaults. Correction of this error was not done f r the years prior to 2010, so those numbers are overstated
Aggravated Assaults: Beginning in July 2012, I wa State Code Chang s and additions necessitated a reclassification of certain t pes of assn Its. 2013 marked the rst full Cale dar year with the new assifications. As a comparison, using
the new methodology, CY1 2 had pretiously shown 41 Aggravated Assa Its but with the addition of additional State Codes and th law Chang s it now shows 120. U der the old methodology, CY13 wo Id have had 38 Aggravated Assaults,
a drop of8 %from the previous year instead of a now reported 138. If of for the changes in reporting requirements, CY13 would have shown 108 Crimes Against P rsons, whit h would have been -11 5% of the retised average, and total
Part 1 Crimes would have been 1,899, or -1 3.4% of the revised average.
I �
I I High Year 1--IPrevious High Year
19
900
800
700
600
500
400
300
200
100
0
770
545 537
i
438 435 430 418
354
328 308
254
1
e. 0\J �ecao �\chL�aQ,4i a�e\o° `QaQ`t' o ° +(•� ��Jo. .$• ie`'
S e`' O as h` O e5
co J O O ti `e NO
10 largest cities in Iowa with a population greater than 50,000 people 2009 -2011. Above is based on the
three year average of population and 3 year average of Part 1 Crimes according to the FBI's Uniform
Crime Reports (UCR) for calendar years 2009 -2011
In 2013, Dubuque was ranked #10 in the Farmers Insurance "Top 20 Most - Secure
Small Cities" nationally, among those with a population Tess than 150,000.
While there is still much work to be done in the area of public safety, the City is moving
in the right direction. As one of the City Council priorities, City staff will continue to
implement the Safe Community Task Force recommendations.
When I started with the City in January 1993, the first thing I did on my first day of work
was walk over to the bookshelf in my office and began reading the City's
Comprehensive Plan. One problem, it was dated September 1936. Fortunately for me,
in 1990 the City Council had formed a Long Range Planning Advisory Commission and
they were just completing the visioning process called Vision 2000. This led to a two -
year process to create a Comprehensive Plan. That plan has had three updates over
the years, and is scheduled for a major rewrite over the next two years.
In 1995, the City Council adopted the first Comprehensive Plan for the City of Dubuque
since 1936. Several studies came from that plan that launched the work plan for the
City for the next 10 years, including a Riverfront Plan, a Utility Extension Plan, an
Industrial Park Development Plan, a Downtown Plan and others.
The Industrial Park Development Plan identified that there were almost no industrial
sites left in the community, with the Dubuque Industrial Center on Chavenelle Road at
the Northwest Arterial and Radford Road developed in the mid- 1980's by Dubuque
In- Futuro (now known as Dubuque Initiatives) having only a few remaining sites. There
were no private developers willing to invest the significant capital needed, in the tens of
20
millions of dollars, to acquire a sizeable parcel of land, extend utilities to that property,
put utilities within the site, grade the site, remove any rock, build a road to the site and a
road within the site, and then put in the landscaping and lighting only to wait patiently for
an existing company to be ready to expand or a new company to want to come to
Dubuque.
The industrial park development study identified the need for 900 acres of property to
serve the needs of the City for the next 20 years. The City Council directed that the City
acquire the needed property. The City did acquire over 900 acres of property and
began developing the land. About 200 acres of the land was donated to the City by
Dubuque County, with just a promise that they would get a share of any future sales on
that site.
These properties have been developed into the Dubuque Technology Park, Dubuque
Industrial Center West, and Dubuque Industrial Center South. Two other City -
developed areas are Kerper Court, home to Eagle Window and Door, and the Port of
Dubuque, home to Flexsteel, McGraw -Hill, and others. The study's prediction that this
was a 20 -year supply of property is proving to be very accurate. While there might be a
few sites remaining, in 2019, when the first of the Urban Renewal Economic
Development District Tax Increment Financing areas (which have a 20 -year life by state
law) expires the City does need to begin acquiring and developing new industrial sites.
The most important reason to develop industrial parks is to provide a place for existing
businesses to expand. The following are the results of this industrial park development:
Over 1,000 Acres of Industrial Parks/Technology Parks
• Port of Dubuque (1,290 employees)
• Dubuque Industrial Center West (1x285 employees)
• Dubuque Industrial Center. (1,244 employees)
• Dubuque Technology Park (1;028 employees)
• Kerper Court Industrial Area (710 employees)
• Dubuque Industrial Center North (116 employees)
21
The Companies include:
Adams Company
Alliant Energy
Arts -Way Vessel Systems
Automated Pre -Sort
Boyd Gaming
Cartegraph
DDI, Inc.
Dubuque County Historical Society
Dubuque Screw Products
Eagle Window & Door (Anderson Window)
Flexsteel
Giese Manufacturing
Hartig /Med One
Hodge Companies
Hormel
ITC
Info Safe
Kendall Hunt
Kunkel & Associates
McGraw -Hill Higher Education
McKesson Corporation
Medline
P & L Ventures
Sedgwick CMS
Spiegel Family Realty
Straka Johnson Architects
Theisen Supply
TM Logistics
Tri -State Industries
Universal Tank
Vanguard
Windstream
These industrial and technology parks are designated as Urban Renewal Areas,
allowing for the use of Tax Increment Financing to assist in development costs and to
provide business incentives.
The impact of the use of Tax Increment Financing (TIF) in Dubuque is as follows:
New Investment
Retained Jobs
New Jobs
Total Jobs
$556,901,732
6,287
3,341
9,628
These almost 10,000 employees live in our communities, spend their paychecks, buy
homes, rent apartments, shop at stores, eat in restaurants, buy gasoline and groceries,
attend events, donate time and money to not - for - profits, pay taxes and send their
children to school. The businesses paid to construct their facilities, put construction
workers to work, and on a continuing basis they buy goods and services in the
community. Thousands of more jobs and millions of dollars of capital investment are
the result of all of these business and employee expenditures.
This is a tremendous immediate return on investment of TIF dollars. But that immediate
return is not all there is. The first of the major TIF areas begins to expire in 2019, (other
smaller ones have expired in the past, providing approximately $450,000 in annual
property tax revenue to taxing bodies). Should these industrial and technology parks
achieve full build out by 2019, which there is reason to believe they will, the taxing
bodies will start to receive an annual property tax payment (that will grow every year) of
approximately $4 million (should there not be another business built or lot sold, the
return would be $2 million per year) divided as follows:
22
R e s u l t s City of Dubuque
New Schools, County, City Tax $ - Full Build -Out of Retiring TIF Districts,
In First Year of Expiration
53,000,000
52,700,000
52,400,000
52,100,000
51,800,000
51,500,000
51,200,000
5900,000
5600,000
5300,000
S
$1,090,499
• Other, $24,346
• NICC, 529255
• County, 5708,002
• City, 5356,604
• DCSD, 5472,292
1
$2,857,976
• Other, 563,805
• NICC, 576,673
• County, 5545,132
• City, $934,587
• DCSD, $1,237,780
5529,994
$9,610
4111110 111
$1,948,766
• Other, 543,506
• NICC, 552,281
• County, 5371,709
• City, 5637,206
• DCSD, 5844,004
$1,489,027
• Other, 533,243
• NICC, 539,947
• County, 5284,018
• City, 5486,927
• DCSD, 5644,893
Tech Park South - DtCW - Subarea B - Quebecor -2025 Kerper - 2032 DICW - Subarea C - DICW - Subarea 0 -
Updated Dec. 2013
2019 2019
2031 2031
Total Annual Return to Schools, County, and City = $7,925,873
The projections are based on assessed valued increasing 3% each year and full build -out, with sale of all property.
The use of Tax Increment Financing as a redevelopment and economic development
tool is having transformational results in Dubuque. In 1983, there were 37,600 people
working in Dubuque's Metropolitan Statistical Area (MSA) and as of December 2013,
there were 60,800 people working in the Dubuque MSA.
Another major use of Tax Increment Financing is the Downtown Urban Renewal District.
The amount of private and public investment in the revitalization of Downtown Dubuque
is nothing short of extraordinary:
Improvement
1985 -2012
% since 2000
New Construction
$242 million
92%
Building Rehabilitation
$260 million
87%
Real Estate Sales
$145 million
69%
Public Improvements
$97 million
93%
Facade Renovation
$16 million
81%
Net New Jobs
+4,294
70%
Total Improvements
$650 million
90%
Nearly 300 new downtown housing units constructed or under
construction in the last 3 years
23
The City economic development strategy is being carried out in close partnership with
many organizations, with the key ones being the federal government, the State of Iowa,
East Central Intergovernmental Association, ECIA Business Growth, Dubuque County,
Northeast Iowa Community College, the Greater Dubuque Development Corporation,
Dubuque Initiatives, Dubuque Main Street, Washington Neighborhood Development
Corporation, Dubuque Area Chamber of Commerce, Community Foundation of Greater
Dubuque, Dubuque Area Convention and Visitors Bureau, and Inclusive Dubuque.
This is all a part of the City's Sustainability Strategy and Sustainable Dubuque working
to create a viable, livable and equitable community through Environmental /Ecological
Integrity, Economic Prosperity and Social /Cultural Vibrancy.
One of the City Council's priorities is Four Mounds. This budget recommends
significant enhancements to the partnership with Four Mounds, but nowhere near as
significant as that requested by Four Mounds.
This budget includes two items that are designed to help Four Mounds enhance their
site planning efforts and then to help develop the partnerships needed to develop those
plans. First is $5,000 of a requested $10,000 to help pay for contracting services to
develop a short- and long -term strategic plan for the entire facility. Second is $5,000 to
provide a challenge grant for site improvements for the Four Mounds Estate. Four
Mounds Estate Historic District is a unique historic Dubuque landmark. It is part of the
City's park system, and it is an inn and conference center. Through the lodging of the
historic site, Four Mounds Estate generates hotel /motel tax. In calendar year 2012,
$10,069 was collected. The improvements will enhance the visitor experience. The
City's $5,000 match would only be paid to Four Mounds as a match to a site
improvement grant from another organization.
Through the Capital Improvement Program (CIP) budget item (page #406),
"Homeownership Grants in Targeted Neighborhoods and Purchase /Rehab /Resale ", the
City is proposing a major expansion of the HEART Program in two ways. One, the City
would be acquiring more properties for rehab and resale, so HEART would have more
opportunity to rehab structures. The City will be discussing with Four Mounds
improvements to their business model to potentially make this activity more profitable to
Four Mounds and to their students. A major HEART Program expansion being
proposed for discussion with Four Mounds is creation of an additional crew to perform
not whole -house rehabs, but to provide major maintenance projects to low- income
owner - occupied housing. This will help to fill a need in the community, improving
neighborhood appearance, making homes safe and attractive, and making the
improvements affordable to low- income home owners, while offering more educational
opportunities for students and additional income to Four Mounds.
The new maintenance program for the HEART Program would be intended to be a
partnership with the Green and Healthy Homes Initiative (GHHI), a current partnership
the City has with Operation New View and the Community Foundation of Greater
24
Dubuque through the Housing and Community Development Department and the
Health Services Department. In fact, this CIP, in general, will be a way to significantly
enhance GHHI.
The Fiscal Year 2015 budget also recommends $3,558 in Community Development
Block Grant (CDBG) funds for the Four Mounds Adventure Day Camp Program.
The budget recommendation also includes $6,560 for services related to changes in the
AmeriCorps Partners in Learning Grant. The grant has been rewritten and submitted
focusing only on education components to make the grant more competitive. This
means City and Four Mounds activities are being impacted with the loss of AmeriCorps
members. These funds pay Four Mounds for staffing of four counselors at the summer
day camp.
The CIP budget includes in the Water Main Extensions (page #120), $155,000 to
provide a water main extension to Four Mounds.
Four Mounds had requested approximately $1,120,000 in additional funding over the
next five years that is not included in this budget recommendation. I assume that will be
included in their fundraising goals.
No doubt the crown jewel of this year's five -year capital improvement program budget is
the impact on flooding problems in the Bee Branch Watershed.
A watershed is an area of land that drains to the same place. The Bee Branch
Watershed drains to the Bee Branch Creek. The Bee Branch Watershed is located
entirely within the City limits of Dubuque and covers approximately 6.5 square miles of
Dubuque's total area of 29 square miles. This watershed area includes the City's most
developed areas, where over 50% of Dubuque residents either live or work.
The City of Dubuque was recently awarded $98.5 million from the Iowa Flood Mitigation
Board in the form of state sales tax increment financing spread over the next 20 years.
When combined with other state and federal grants and local donations, the City has
received over $127 million to help fund this $179 million ($201 million including interest
on debt) project to save 1,373 homes and businesses from flooding. These 70
businesses employ over 1,400 people and have over $500 million in annual sales.
Authorized under the Flood Mitigation Bill in 2012, the Flood Mitigation Program is
administered by the Iowa Department of Homeland Security on a competitive basis by a
citizen board that began accepting applications in November 2013. It is funded by a
portion of state sales tax revenues. The program provides funding to cities and
counties to implement long -term flood mitigation projects. Specifically, the funds are an
annual sales tax increment, or a percentage of the increase in state sales tax revenue
generated within the city or county.
25
The Bee Branch Watershed Flood Mitigation project is a multi - phased, fiscally
responsible investment to mitigate flooding, improve water quality, stimulate investment,
and enhance quality of life within the Bee Branch Watershed and thereby improve the
quality of life throughout the community.
The Bee Branch Watershed area encompasses historic neighborhoods offering some of
the community's most affordable workforce housing. This area is also hit hardest by
flash flooding during significant rain events with much more than "just a little water in the
basement."
Too frequently, it is flooding that inundates water heaters, furnaces, and electrical
boxes, and can cause fires. It rushes down streets from curb to curb — stalling vehicles,
stranding motorists, displacing manhole covers, and damaging pavement, water mains,
and stormwater and sanitary sewers.
Flood disasters have repeatedly impacted residents and employees of the businesses
within the watershed. Between 1999 and 2011, six presidential disasters were issued,
with total damage estimates of almost $70 million.
The flooding in the Bee Branch Watershed also has had a major impact on public
infrastructure and City services both within and outside the flood - impacted area. Direct
public sector costs include emergency response activities, street and utility
infrastructure repairs, and debris clean -up and removal. The disruption of essential City
services and street closures due to flooding and damage also has a negative economic
impact on the entire community.
The Bee Branch Watershed Flood Mitigation Construction Project will prevent an
estimated $582 million in damages over the 100 -year design life of the project and
create an incentive for individuals and businesses to reinvest in this vital area of our
community.
The Dubuque City Council has made infrastructure projects a high priority and the City
of Dubuque is committed to the Bee Branch Watershed Flood Mitigation Project, a
multi- faceted approach to addressing the severe and frequent flash flooding
experienced in the watershed.
$98.5 million is the largest amount ever awarded to the City of Dubuque and will enable
the City to implement its comprehensive flood mitigation plan much sooner than
previously anticipated at a lower cost to Dubuque citizens and businesses. The 12
project phases will reduce the volume of stormwater, slow the rate of stormwater
through the upper watershed, increase the safe conveyance of stormwater through the
flood -prone area, and provide floodwater protection to the City's water treatment plant
on Hawthorne Street.
26
Bee Branch Watershed Flood Mitigation Project Phases
Phase Status
Phase 1: Carter Road Detention Basin
Phase 2: West 32nd Street Detention Basin
Phase 3: Historic Millwork District Complete Streets
Phase 4: Lower Bee Branch Creek Restoration
Phase 5: Flood Mitigation Gate Replacement
Phase 6: Impervious Surface Reduction (Alley
Reconstruction)
Phase 7: Upper Bee Branch Creek Restoration
Phase 8: 22nd St. Storm Sewer Capacity Improvements
Phase 9: Flood Mitigation Maintenance Facility
Phase 10: North End Storm Sewer Capacity Improvements
Phase 11: Water Plant Flood Protection
Phase 12: 17th St. Storm Sewer Capacity Improvements
Completed in 2003
Completed in 2009
Completed in 2012
Est. Completion - 2014
Est. Completion - 2015
Est. Completion - 2033
Est. Completion - 2016
Est. Completion - 2020
Est. Completion - 2020
Est. Completion - 2019
Est. Completion - 2020
Est. Completion - 2020
Total cost, excluding
interest on debt:
Cost
$1,076,315
$4,158,589
$7,977,311
$21,274,685
$2,099,000
$57,420,000
$64,823,636
$3,380,000
$4,360,000
$1,160,000
$3,800,000
$7,520,000
$179,049,536
Dubuque's current stormwater utility rate is $5.60 per month for the average single -
family home in Dubuque. (Properties that are exempt from property taxes, such as non-
profits, only pay 50% of the stormwater fee, as do low- income individuals. Farms within
the city receive a 75% discount.) Due to the costs associated with maintaining the
current stormwater management system and implementing the Bee Branch Watershed
Project over the next 20 years, the City is projecting annual increases to the stormwater
utility rate to reach $9.00 per month on July 1, 2021. Prior to the state grant program,
the rate was projected to rise to $9.00 per month on July 1, 2016, and the
improvements would have taken 50 years or more. With the state grant, they will be
completed in 20 years, with most completed over the next six years. The protection will
be provided sooner at a lower cost to Dubuque residents and businesses. The Fiscal
Year 2015 budget recommendation is for an increase in the fee from $5.60 to $5.98, or
6.79 %.
The Bee Branch Watershed Project is a 12- phase, 20 -year construction project to
address stormwater management issues throughout the entire Bee Branch Watershed
area, which stretches approximately from the Mississippi River west past John F.
Kennedy Road, north to the Northwest Arterial, and south to West Fifth Street. The Bee
Branch Creek Restoration is two of the phases of the watershed project and is
scheduled to be completed in 2016.
Phase 6, "Impervious Surface Reduction," will involve the reconstruction of 240 alleys
within the watershed. These alleys will be converted to pervious surfaces (pavers) to
allow stormwater to filter back into the ground instead of creating run -off to surrounding
properties and downstream in the watershed. Approximately 70 alleys will be
completed in the first three years of the project, with the remainder completed over the
next 17 years. Abutting property owners will be assessed for a portion of these costs.
The average paving assessment portion is estimated to be $800 per residential
27
property. These assessments can be paid over 15 years at an estimated 3% interest.
Financial assistance is available for income - qualified, owner - occupied properties.
This project will impact the debt structure of the City, as most of the project will be
accomplished through the issuance of debt, through a combination of State Revolving
Loan Funds (SRF) and general obligation debt issuances, with payments abated by the
State Sales Tax Increment awarded to the City by the State of Iowa Flood Mitigation
Board and the City's Stormwater Utility Fee.
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.
On October, 15, 2012, the City Council adopted a formal Debt Management Policy for
the City of Dubuque. While this debt management policy just put into writing what the
City of Dubuque was already doing in practice, there were some changes to those
policies. The most significant components of the Debt Management Policy include an
internal policy of maintaining the City's general obligation outstanding debt at no more
than 95% (except as a result of disasters) of the limit prescribed by the State
constitution as of June 30th of each year; City will not use short -term borrowing to
finance operating needs except in the case of an extreme financial emergency which is
beyond its control or reasonable ability to forecast. Recognizing that bond issuance
costs (bond counsel, bond rating, and financial management fees) add to the total
interest costs of financing, bond financing should not be used if the aggregate cost of
projects to be financed by the bond issue does not exceed $500,000; City will consider
long -term financing for the construction, acquisition, maintenance, replacement, or
expansion of physical assets (including land) only if they have a useful life of at least six
years; City shall strive to repay 20 percent of the principal amount of its general
obligation debt within five years and at least 40 percent within ten years. The City shall
strive to repay 40 percent of the principal amount of its revenue debt within ten years.
Total annual debt service payments on all outstanding debt of the City shall not exceed
25% of total annual receipts across all of the City's funds. As of June 30, 2013, it is
projected the City will be at 17 %; and it shall be the goal of the City to establish an
internal reserve equal to maximum annual debt service on future general obligation
bonds issued that are to be abated by revenues and not paid from ad- valorem property
taxes in the debt service fund starting with debt issued after July 1, 2013. This reserve
shall be established by the fund or revenue source that expects to abate the levy, and
shall be carried in said fund or revenue source on the balance sheet as a restricted
reserve. This reserve does not exist now, except where required by bond covenants.
This internal reserve would be implemented by adding the cost of the reserve to each
debt issuance.
The City has been increasing the use of debt to accomplish the projects that need to be
done. However, beginning in Fiscal Year 2016 the amount of outstanding debt will begin
28
to decrease. The debt principle outstanding as of June 30, 2014, will be $290,182,909.
The breakdown of the debt principle outstanding as of June 30, 2014, is as follows:
Debt Obligation
Principle
Outstanding
6/30/14
General Obligation Essential Corporate Purpose
$100,351,853
Tax Increment Notes and Bonds
$ 22,792,464
Economic Development TIF Rebate Agreements
$ 20,188,981
General Fund Leases
$ 135,000
Other Revenue-Backed Loans
$ 4,594,285
Total Indebtedness Subject to Statutory Debt Limit $183,621,403
$148,062,583
Percent of Statutory Debt Limit Used as of June 30, 2014
80.63%
Revenue Bonds
$142,120,326
Total City Indebtedness as of June 30, 2014
$290,182,909
It should be noted that most of the City of Dubuque's outstanding debt is not paid with
property taxes (except TIF), but is abated from other revenues, except for one issuance
for the replacement of a Fire Pumper truck in the amount of $1,410,000 with debt
service of $117,280 in Fiscal Year 2014. Included in the debt is $20,188,981 of property
tax rebates to businesses creating and retaining jobs and investing in their businesses.
Statutory Debt Limit
Fiscal
Year
Statutory Debt
Limit
Amount of Debt
Subject to Statutory
Debt Limit
% Debt Limit
Used
2014
$183,621,403
$148,062,583
80.63%
2015
$193,113,721
$157,793,297
81.71%
The City also has debt that is not subject to the statutory debt limit. This debt includes
revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater
fees on June 30, 2014 will have a balance of $142,120,326. The total City
indebtedness as of June 30, 2014 will be $290,182,909. The total City indebtedness as
of June 30, 2013 was $244,405,656. The City is using debt to accomplish the projects
that need to be done and to take advantage of the attractiveness of interest rates in the
current market.
Part of the City's Fiscal Year 2014 debt was in the form of a grant from the Iowa Flood
Mitigation Program. Through a new state program, the City is able to issue $28.25
million in revenue bonds payable from the 5 percent State Sales Tax increment for
projects in the Bee Branch Watershed allowing the City to complete the Bee Branch
Creek Restoration, construct permeable alleys, replace the Bee Branch flood gates,
complete North End Storm Sewers, construct a Flood Control Maintenance Facility,
install Water Plant Flood Control and complete 17th Street Storm Sewer over the next
twenty years.
29
In Fiscal Year 2015, there is anticipated to be an additional $21,432,697 in debt issued
and $14,116,040 in principal of existing debt reduced. Of the $21,432,697 in new debt,
all would apply against the statutory debt limit and the principal retired $909,771 applied
against the statutory debt limit.
There was a 5.17% increase in assessed value effective January 1, 2013, which is the
assessment the Fiscal Year 2015 statutory debt limit is based on. The statutory debt
limit effective June 30, 2015, is $193,113,721. The City will be at 81.71 % of statutory
debt limit by June 30, 2015.
During the Fiscal Year 2014 budget process, a projection of the statutory debt limit
usage was presented at the public hearing to adopt the Fiscal Year 2014 budget. The
following was the projection that was previously shown:
FY13
FY14
FY15
FY16
FY17
FY18
FY19
78.93%
75.39%
75.44%
63.88%
53.09%
46.15%
43.60%
These s atutory debt limit usage projections have changed slightly due to: the actual
amount of debt recommended in the Fiscal Year 2015 CIP budget; being advised that
the $10 million dollar guarantee balance on the Roshek Building is subject to the City's
statutory debt limit due; utility extensions were not requested by property owners for
previously annexed areas and therefore the debt was not issued; and the Bee Branch
Watershed project has secured funding through the State of Iowa Flood Mitigation
Program which now includes general obligation borrowings for part of the local match.
The revised projection of the statutory debt limit usage is as follows:
FY13
FY14
FY15
FY16
FY17
FY18
FY19
84.31 %
80.63%
81.71%
80.56%
73.33%
68.77%
70.56%
As you review the Fiscal Year 2015 -2019 Capital Improvement Program (CIP) the
problem is not the city's 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.
The following table and line charts illustrate the amount of the statutory debt limit and
total debt used by the City pre- and post -flood mitigation project -state sales tax
increment grant, allowing the Bee Branch Watershed project that was going to take over
50 years, to be reduced to 20 years, with most of the flood protection provided over the
next six years.
30
Statutory Debt with Flood Mitigation
Debt:
613012014
613012015
613012016
613012017 613012018
613012019
Total General Obligation Debt
$ 100,351,853
$ 114,024,618
$ 118,736,619
$ 111,184,427 $ 108,632,135
$ 118,346,693
Total Tax Increment Debt
$ 22,792,464
$ 22,173,996
$ 21,577,106
$ 20,962,726
$ 20,300,881
$ 19,711,055
Economic Development TIF Rebate
Agreements
$ 20,188,981
$ 16,912,541
$ 13,731,647
$ 10,544,764
$ 7,499,698
$ 5,067,201
Total Other Revenue - Backed Loans
$ 4,594,285
$ 4,547,142
$ 4,500,000
$ 4,500,000
$ 4,370,000
$ 4,235,000
Total Lease Obligations Paid From
General Fund
$ 135,000 $ 135,000
$ 135,000
$ 135,000 $ 135,000
$ 135,000
Total City Indebtedness for Statutory Debt
Calculation
$ 148,062,583
$ 157,793,297
$ 158,680,372
$ 147,326,917
$ 140,937,714
$ 147,494,949
Total Revenue Bonds (Exerrpt from
Statutory Debt Total)
$ 142,120,326
$ 141,086,650
$ 139,833,804
$ 135,277,373
$ 130,615,826
$ 125,847,289
Total City Indebtedness
$ 290,182,909
$ 298,879,947 $ 298,514,176
$ 282,604,290
$ 271,553,540
$ 273,342,238
STATUTORY DEBT CAPACITY
Total assessed value of taxable property
$4,098,676,508
$4,180,650,039
$209,032,502
$3,672,428,057
$3,862,274,416 $3, 939,519,904
$4,018,310,302
Statutory Debt (5% of Debt Levy)
$183,621,403
$193,113,721 $196,975,995
$200,915,515
Less Outstanding Debt Subject to Limit
$ (148,062,583)
$ (157,793,297)
$ (158,680,372)
$ (147,326,917)
_$204,933,825
$ (140,937,714)
$ (147,494,949)
Statutory Debt Capacity
$35,558,820
$35,320,424
$38,295,623
$53,588,598
$63,996,111
$61,537,553
Percent of Legal Debt Margin Utilized
80.63%
81.71%
80.56%
73.33%
68.77%
70.56%
90%
Statutory Debt Limit Used
(as of June 30th)
81.71%
40%
30%
47.67%
14 15 16 17 18 19 20 21 22 23 24 25
--Without Flood Mitigation --Flood Mitigation Projection Prior FY15 Budget
31
$320
$300
$280
$260
$240
$220
$200
$180
$160
$140
Total Debt
(In Millions)
$298.5
289.6
$261.9
$251.
$240.5
$2E
$214.9
$239.8
$222.7
205.4
$208.7
$178.8
14 15 16 17 18 19 20 21 22 23
-,-Without Flood Mitigation -M- Flood Mitigation - *-Projection Prior FY15 Budget
24
25
Proposed borrowing by year during this 5 year CIP budget is as follows:
Funding Source
Sales Tax 20% (10 Year)
Sales Tax 20% (15 Year) 160,989
Sales Tax 20% (20 Year) 1,580,411
Sales Tax 30% (7 Year) 328,778
Sales Tax 30% (8 Year) -
Sales Tax 30% (10 Year) -
Sales Tax 30% (20 Year) 1,338,480
Water 3,223,935
Stormwater -
Sewer 3,125,100
GDTI F 7,593,638
DI C W 3,118,500
Parking 209,000
$ 21,432,697 $
Principal Paid (909,771)
Net Debt $ 20,522,926 $
FY15 FY16 FY17 FY18 FY19 Total
$ 753,866 $ 235,950 $ 550,000 $ 66,000 $ 666,840 $ 2,272,656
593,781 - 60,106
607,314
750,495
2,
399,461
216,700
440,000
911,012 1,427,305
3,000,000
539,000 1,046,972
5,200,326
2,200,000
1,003,200
129,586
133,100
660,000
3,738,322
711,150
1,133,000
160,989
55,000 2,289,298
328,778
148,279 1,284,640
183,765 533,565
660,000 3,848,975
10,344,565 21,645,139
3,000,000
6,073,540 11,495,762
1,040,050 15,970,214
5,318,500
110,000 549,357 143,000 154,000 1,165,357
13,147,878 $ 8,632,995 $ 6,774,264 $ 19,326,039 F$ 69,313,873
(555,946) (395,515) (276,569) (786,485) (2,924,286)
12,591,932 $ 8,237,480 $ 6,497,695 $ 18,539,554 $ 66,389,587
There is always risk involved with debt. That is one of the factors that determines what
the interest rate will be when the debt is issued. Of course, there is just not risk for the
lender, but there is risk for the borrower. That risk is a little more pronounced in the
case of the State Sales Tax Increment being used by the City for flood debt, because
this methodology has not been used before. That is why the City took the unusual step
32
of hiring Robert W. Baird & Co. to help market the bonds. The City will be guaranteeing
payment of the bonds with the City's Stormwater Fee and general revenues.
The City has worked closely with the bond advisory firm Piper Jaffray and the City's
bond counsel, Bill Noth of Ahlers & Cooney, P.C., and there is a high confidence level
that projections made are accurate.
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. Working balances are not
available for funding a budget; they are required for cash flow (i.e., to be able to pay
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 revenue sources are beyond the City's
control and therefore uncertain. In the case of Dubuque, 10% represents approximately
$4,376,926.
The City of Dubuque has historically adopted a general fund reserve policy as part of
the Fiscal and Budget Policy Guidelines which is adopted each year as part of the
budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve
Policy. According to the policy for the General Fund, the City will maintain a minimum
fund balance of at least 10 percent of the sum of (a) annual operating expenditures not
including interfund transfers in the General Fund less (b) the amounts levied in the Trust
and Agency fund and the Tort Liability Fund ( "Net General Fund Operating Cost "). The
City may increase the minimum fund balance by a portion of any operating surplus
above the carryover balance of $200,000 that remains in the General Fund at the close
of each fiscal year. The City may continue to add to the General Fund minimum
balance when additional funds are available until 20 percent of Net General Fund
Operating Cost is reached.
The City of Dubuque is to maintain a General Fund working balance or operating
reserve of 10% of the total General Fund Operating budget requirements or
approximately $4,376,926 for Fiscal Year 2015.
Moody's Investor Services has advised they have placed under review 256 U.S. local
governments as a result of the publication of their new U.S. Local Government General
Obligation Bond Methodology. Dubuque's general obligation debt has been placed
under review for possible downgrade.
33
Of the 256 local governments under review, 52% are being considered for an upgrade
and 48% for a downgrade. The methodology increases the weight in Moody's overall
assessment on debt and pensions to 20% from 10 %, decreases the weight on
economic factors to 30% from 40 %, and introduces a scorecard for U.S. local
governments to enhance the transparency of key rating considerations.
Moody's advises that they expect most rating changes resulting from the current
reviews to be one or two notch movements and, depending on mitigating factors, some
ratings could be confirmed at their current rating level.
The increase in the weight attached to debt and pensions recognizes the potential for
large pension liabilities to constrict a local government's financial flexibility, says
Moody's. Because pension liabilities and debt each represent enforceable claims on
the resources of local governments, Moody's has weighted the debt portion of its current
methodology more heavily to capture the combined financial impact of both debt and
pensions.
Moody's states that the reduction in weight attached to economic factors acknowledges
that some local governments are either unwilling or unable to convert the strength of
their local economies into revenues, says Moody's. Tax caps, anti -tax sentiment, the
natural lag between economic activity and its conversion into government revenues
often place obstacles between municipal governments and the income generated by
their local economies, as do a variety of other factors.
It is interesting to note that the last change in rules by Moody's in 2010 resulted in an
upgrade in the City of Dubuque's general obligation bond rating from the third highest
(Aa2) to the second highest (Aa1). Now this rule change may result in a downgrade. In
either case, it is not dependent on any action by the City of Dubuque.
In fact, the City of Dubuque went through a thorough review by Moody's in September
2012 when the City of Dubuque's general obligation bond rating was confirmed at Aa1.
The City was asked to undertake some activities, like adopt a written debt policy, which
the City Council adopted. The Moody's analysis said assignment of the Aa1 rating
reflects the city's role as a regional service and retail provider in northeastern Iowa
(issuer rating Aaa /stable outlook) and neighboring states; satisfactory reserves despite
recent cash funding of capital projects; and an above average debt burden supported by
alternate non -levy revenue sources. The City's strengths include a growing economy
bolstered by role as a regional economic and service center for northeast Iowa and
surrounding states; revenue - raising flexibility through access to multiple property tax
levies and franchise fees. The City's challenges include plans to continue to spend
down financial reserves through fiscal 2013 for capital projects; reliance on volatile
gaming revenues for a significant percentage of general operations; and General Fund
supported unbudgeted mid -year transfers to Worker's Compensation Fund and Health
Insurance Fund in fiscals 2011 and 2012.
34
One of the major new factors that Moody's is introducing is a communities pension
liabilities. In the case of Dubuque, all the pensions are state -wide pension systems
where Dubuque has no control over the composition of the pension benefits, the
amount the City or the employee pays into the pension system or the investment
practices of the pension system. The State of Iowa legislators determine the benefit
levels and the allowed contribution levels and the Pension Board determines the
investment practices. Now, in the City of Dubuque bond rating, Moody's will hold
individual communities liable for any underfunding, which I am not disputing, but I
believe the State of Iowa needs to contribute to fully funding these pensions, since the
State legislators set the benefit levels.
In strong contention with the Bee Branch project for the crown jewel of this year's five -
year capital improvement program budget is a project that will make less of an impact
on the budget than previously thought.
In the past, the City had assumed that all the costs of the Southwest Arterial project
needed to be in the City budget, because the State of Iowa had designated it as a local
road. However, in 2013, the State and the City executed a Memorandum of
Understanding that when the City completes design, property acquisition and work on
some of the intersecting roads, the Southwest Arterial project will become a State
project as a state highway. This will culminate in a future Transfer of Jurisdiction
Agreement where the City will take over jurisdiction from the State of the Northwest
Arterial (Highway 32) and the part of the current Highway 52 that runs through Dubuque
as Central Avenue and White streets. Now the City will not only get Iowa Department of
Transportation to finance and construct the $135 million Southwest Arterial project, but
hundreds of trucks per day will be rerouted from downtown Dubuque.
One major frustration with this year's budget is the impact of new Federal American's
with Disabilities Act (ADA) implementation rules and their impact on the City of Dubuque
annual asphalt overlay program. Beginning January 1, 2014, any alterations to an
existing street's crosswalk, including asphalt resurfacing, will require that existing curb
ramps be brought up to the latest ADA standards. This unfunded federal mandate has
severe financial ramifications for the City's annual asphalt overlay program. The City
would have to increase funding for the curb ramp portion of its annual asphalt overlay
program by $1.1 million in Fiscal Year 2015 to stay on the current ten centerline miles
per year program. For Fiscal Year 2015, the program will be reduced from ten miles of
streets resurfaced to five miles of streets resurfaced. Even with the overlay program cut
in half, from ten to five miles in Fiscal Year 2015, the monies needed for curb ramps is
more than triple from the past years. To accomplish this, the City will do a general
obligation debt borrowing. A future increase in the state gas tax with corresponding
increases in Road Use Tax Funds to cities would allow an expansion of the program in
the future. The City will also examine the possibility of using Tax Increment Financing
revenues to improve streets.
Street maintenance crews will stay busy. As always, they will plow snow and spread
salt in the winter. During the time they would have been doing asphalt overlays, they
35
will expand the City's street crack sealing program, replace more defective concrete
street panels, replace more deteriorated curbs and gutters, and replace sidewalks near
City parks, allowing Leisure Services to save money be avoiding hiring private
contractors.
The City of Dubuque's annual asphalt overlay program began in the summer of 1993,
with the purchase of the City's first paving machine. That first machine was relatively
small, as was the City's program in its early years, with an initial objective of paving five
centerline miles per year. With the purchase of a much larger paver in 1999, along with
an increased budget for hot mix asphalt, the City's paving program was doubled from
five to ten centerline miles per year. Since the beginning of the program in 1993,
190.55 centerline miles of Dubuque streets have been paved by City crews - well more
than half of the City's 309.87 total street miles. In recent years, the City's asphalt
overlay program was further enhanced by adding concurrent ancillary infrastructure
improvements, including curb and gutter replacement, sewer manhole cover and water
valve cover replacement, and, larger street signs that are also much more visible at
night. It should also be noted that the program in recent years also includes grinding
and removal of old asphalt in the gutters and crosswalks of the streets, providing for full -
depth paving at those potential weak spots. Also, the program provides for recycling
that old asphalt by blending it into the mix used to pave those same streets.
While this budget recommendation does not include additional funding for the arts, there
has been an organizational change to recognize the impact the arts has on the local
economy.
Mayor and City Council made the arts a priority and created the Arts and Cultural Affairs
Advisory Commission. Upon creation of that commission, I assigned Neighborhood
Development Specialist Jerelyn O'Connor the role as the liaison to the Commission.
Subsequently, the Mayor and City Council funded a part -time position titled Arts and
Cultural Affairs Coordinator.
Jerelyn has worked with the Arts and Cultural Affairs Advisory Commission to raise the
prominence of the Arts in Dubuque and to analyze the impact of the Arts.
In June 2012, Americans for the Arts provided the City of Dubuque the results of a study
of the "Economic Impact of the Nonprofit Arts and Culture Industry" in the City of
Dubuque. The study said:
"Arts & Economic Prosperity IV provides compelling new evidence that the
nonprofit arts and culture area are a significant industry in the City of
Dubuque —one that generates $47.2 million in total economic activity.
This spending —$17.6 million by nonprofit arts and culture organizations
and an additional $29.6 million in event - related spending by their
audiences — supports 1,530 full -time equivalent jobs, generates $36.7
million in household income to local residents, and delivers $5.0 million in
36
local and state government revenue. This economic impact study sends a
strong signal that when we support the arts, we not only enhance our
quality of life, but we also invest in the City of Dubuque's economic well-
being."
Jerelyn has performed in an outstanding manner in her role related to Arts and Cultural
Affairs.
In reaction to the results of this economic impact study, I want to create greater focus
on the relationship of the Arts to economic development. Therefore, I transferred the
responsibility of supervising the Arts and Cultural Affairs Coordinator to Economic
Development Director Maurice Jones.
The Fiscal Year 2015 budget recommends a $11.0259 per thousand dollars of
assessed valuation property tax rate which is unchanged from the current Fiscal Year
2014 property tax rate.
While there have been fluctuations along the way, the $11.0259 Fiscal Year 2015
recommended rate is a 10.60% increase over the Fiscal Year 2010 property tax rate, or
a 1.71% average annual increase over that five -year period.
The Fiscal Year 1987 (just prior to implementation of the 1% local option sales tax
where 5O% was dedicated to property tax relief) property tax rate of $14.58 per
thousand dollars of assessed valuation was 24.39% higher than the Fiscal Year
2015 recommended property tax rate of $11.0259.
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Fiscal Year
37
While gaming revenues have stabilized, the City is still feeling the effects of the
reduction in lease revenues from the Dubuque Racing Association. When the Diamond
Jo expanded, it was projected that Dubuque Racing Association lease revenues would
decrease 21 %, but the actual decrease has been 38 %. In fact, if you compare the
highest lease year revenue from the DRA of Fiscal Year 2007 at $9,757,458 with the
Fiscal Year 2015 projection of $6,023,925, the City will receive $3,733,533 less in lease
revenue.
The split of gaming revenues from taxes and the DRA lease (not distributions) in Fiscal
Year 2015 is split between operating and capital budgets at 97.0% / 3.0% which is a
change from 90.0% operating and 10.0% capital in Fiscal Year 2014. This is not as
severe of a change that was recommended and adopted in the Fiscal Year 2015 Budget
Guidelines where it was anticipated that 100% of the lease revenues would need to go
into the operating budget to maintain the property tax rate at the Fiscal Year 2014 level.
This 10% margin was to cushion the City operating fund when there was a downturn in
gaming revenue. That downturn has arrived with the lease payments decreasing from a
high of $9,757,458 in Fiscal Year 2007 down to the current projection of $6,023,925 in
Fiscal Year 2015. It is appropriate to make the adjustment now because the five year
projection of the City property tax rate is as follows:
FY 2015 +0.00% increase
FY 2016 +0.97% increase
FY 2017 +0.31 % increase
FY 2018 +1.58% increase
FY 2019 +1.30% increase
A significant impact of the change is the reduction of funds that now go to the City's five -
year capital improvement program. Over the next five years there will be $2,480,013
less available for capital improvement program projects because most of the money
now goes to the general fund operating budget.
Health insurance cost will have a significant impact on the Fiscal Year 2015 property
tax. The City portion of health insurance expense will increase from $1,015 per month
per contract to $1,190 per month per contract (based on 553 contracts) which is a
17.24% increase in health insurance cost for an additional cost of $825,122 to the
General Fund in Fiscal Year 2015, which would be a 3.24% property tax increase for
the average homeowner without other mitigating factors unrelated to health insurance.
In the last few years, the City Council has boosted the general fund reserves and in
Fiscal Year 2011, Fiscal Year 2012, Fiscal Year 2013 and Fiscal Year 2014, some of
the General Fund reserves went to bolster the Health Insurance Reserve since the City
of Dubuque is self- insured actual expenses are paid each year with the City only having
stop -loss coverage for major claims.
Industrial and riverfront property lease revenue is projected to increase by $839,550 in
Fiscal Year 2015 due to lease negotiations of old expiring leases and leases to new
tenants on sites that are vacant.
38
The Municipal Fire and Police Retirement System of Iowa Board of Trustees have
increased the City contribution for Police and Fire retirement from 30.12 percent to
30.41 percent ( +0.96% or an increase of $39,406 in General Fund). The Municipal Fire
and Police Retirement City contribution is expected to decrease 8.71 % in Fiscal Year
2016; 8.03% in Fiscal Year 2017; 2.35% in Fiscal Year 2018 and 4.69% in Fiscal Year
2019. Also, the Iowa Public Employee Retirement System (IPERS City contribution
remains at 8.93 percent and the employee contribution remains at 5.95% in Fiscal Year
2015. The IPERS rate is anticipated to increase 1 percent each succeeding year
according to IPERS.
Transit motor vehicle fuel, and low and high sulfur diesel fuel expense is estimated to
increase 16.25 percent ( +$49,613) over Fiscal Year 2014 budget based on two
additional routes running for four quarters, then 2.0 percent per year beyond.
Transit motor vehicle maintenance is estimated to increase 173.39 percent ( +$262,764)
over Fiscal Year 2014 budget based on the actual maintenance schedule for the buses
as the warranties expire on the new buses, then 2.0 percent per year and beyond.
The increase in property tax support for Transit from Fiscal Year 2014 to Fiscal Year
2015 is $223,359. The following is a ten -year history of the Transit subsidy:
FY 2015 $1,056,661 estimate
FY 2014 $ 833,302 budget
FY 2013 $1,044,171
FY 2012 $ 717,611
FY 2011 $1,078,726
FY 2010 $1,161,393
FY 2009 $1,253,638
FY 2008 $1,070,053
FY 2007 $ 923,384
FY 2006 $ 710,453
FY 2005 $ 617,048
Fiscal Year 2013 was the first year that eligible retirees with at least twenty years of
continuous service in a full -time position or retired as a result of a disability and are
eligible for pension payments from the pension system can receive payment of their sick
leave balance with a maximum payment of one - hundred twenty sick days payable bi-
weekly over a five year period. The sick leave payout expense budget in the General
Fund in Fiscal Year 2014 was $116,728 as compared to Fiscal Year 2015 of $174,925
based on qualifying employees officially giving notice of retirement.
The Section 8 Housing subsidy payment from the General Fund increased from
$210,820 in Fiscal Year 2014 to $354,845 in Fiscal Year 2015. In Fiscal Year 2011, the
City approved reducing the number of allowed Section 8 Housing Vouchers from 1,060
to 900 vouchers. This reduction in vouchers was estimated to reduce Section 8
39
administrative fees from HUD by $100,000 per year. However, in the transition, the
number of vouchers dropped to approximately 800 vouchers. HUD has based the
Section 8 administrative fees for Fiscal Year 2015 on the lower number of vouchers
held in Fiscal Year 2014 which has decreased the amount of revenue received by the
Section 8 program in Fiscal Year 2015. The City is in the process of increasing the
Section 8 Housing Vouchers back to 1,060, as ordered by HUD, however the Federal
sequestration has delayed that increase.
The Enterprise Funds have contributed to the administrative overhead of the City
operation, but the General Fund has always carried most of the financial burden. In
Fiscal Year 2013, a multi -year process to more equitably distribute those costs across
all funds was implemented. The remaining overhead recharge will be increased ten
percent each year for ten years until reaching the total overhead recharge percentage.
In Fiscal Year 2015 the administrative overhead was increased ten percent or an
increase of $431,951.
The Affordable Care Act was signed into law on March 23, 2010 and aims to improve
the current health care system by increasing access to health coverage for Americans
and introducing new protections for people who have health insurance.
Employers with more than 50 full -time equivalent employees must provide affordable
"minimum essential coverage" to full -time equivalent employees. The definition of a full -
time equivalent employee under the Affordable Care Act is any employee that works 30
hours per week or more on average over a twelve month period (1,660 hours or more).
There is a twelve -month monitoring period for part -time employees. If a part -time
employee meets or exceeds 30 hours per week on average during that twelve month
period, the City must provide health insurance.
On July 2, 2013, the Treasury Department announced that it will postpone the employer
shared responsibility mandate for one year. Based on the initial requirements of the
Affordable Health Care Act, the Fiscal Year 2014 budget provided for insurance
coverage effective February 1, 2014 for several part -time employees. In addition the
Fiscal Year 2014 budget provided for making several part -time positions full -time on
June 1, 2014.
Due to the delay of the employer shared responsibility mandate for the Affordable
Health Care Act, the City will delay providing insurance coverage for eligible part -time
employees and delay making eligible part -time positions full -time until January 1, 2015.
The Standard Measurement Period will be delayed from January 1, 2013 through
December 31, 2013 to December 1, 2013 through November 30, 2014 with the first
provision of health insurance date being January 1, 2015.
The Affordable Care Act is expected to increase employee expense in Fiscal Year 2015
by $200,332 and in Fiscal Year 2016 by $487,239, with incremental increases each
year thereafter.
40
The Fiscal Year 2015 recommended property tax rate of $11.0259 includes $129,906
for recurring improvement package requests and $100,831 funds for non - recurring
improvement package requests in the Fiscal Year 2015 budget recommendation.
Elimination of the $129,906 in funds for recurring improvement packages would reduce
the property tax rate from $11.0259 to $10.9682.
The recommended property tax rate of $11.0259, while being no increase in the
property tax rate over Fiscal Year 2013, will be a 3.23% increase to the "City"
share of property taxes for the average homeowner, assuming the Homestead
Property Tax Credit is fully funded by the State of Iowa. It is important to remember
that the impact of the property tax rate on revenue to the City and cost to the average
homeowner is impacted by the increase in the City's taxable valuation, (increasing it
from $2,171,073,899 in Fiscal Year 2014 to $2,250,099,910 in Fiscal Year 2015, a
3.34% increase), excluding TIF District Revenues, and the change in the State rollback
factor, which is going from 52.817% to 54.400 %, as determined by the State of Iowa.
The recommended property tax rate of $11.0259 provides a property tax decrease
for industrial properties (- 7.23 %) and commercial properties (- 1.15 %) and a 3.23%
property tax increase for the average Dubuque homeowner.
There was an equalization order from the Iowa Department of Revenue of 8% for
commercial property and 10% for agricultural property in Fiscal Year 2015. The Iowa
Department of Revenue is responsible for "equalizing" assessments every two years.
Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed
value; however due to legislative changes in Fiscal Year 2013 a 95 percent rollback
factor will be applied in Fiscal Year 2015 and a 90 percent rollback factor will be applied
in Fiscal Year 2016 and beyond. The State of Iowa will backfill the loss in property tax
revenue from the rollback and the backfill 100 percent in Fiscal Year 2015 through
Fiscal Year 2017 and then the backfill will be capped at the Fiscal Year 2017 level in
Fiscal Year 2018 and beyond. The Fiscal Year 2015 State backfill for property tax loss
is estimated to be $701,570.
Fiscal Year 2015 is the first year that commercial, industrial and railroad properties are
eligible for a Business Property Tax Credit. The Business Property Tax Credit will be
deducted from the property taxes owed and the credit is funded by the State of Iowa.
Eligible businesses must file an application with the Assessor's office to receive the
credit with a deadline of January 15, 2014 for applications to be considered for Fiscal
Year 2015. The average commercial and industrial properties ($386,139 Commercial /
$599,500 Industrial) will receive a Business Property Tax Credit for the City share of
their property taxes of $148 in Fiscal Year 2015.
41
I am recommending the following increases and reduction for the Fiscal Year 2015
budget for the Parking Division:
• Increase 10 -hour parking meter rates from $.25 per hour to $.35 per hour.
Anticipated revenue increase of $35,000.
• Increase fine amounts. All fines that are currently $7.00 would increase to
$10.00 and fines that are currently $15.00 would increase to $20.00. This
increase affects all violations except Disabled Parking, Snow Route and Fire
Lane. Anticipated revenue increase of $131,310.
• Increase ramp hourly rates. Increase the first hour of parking from $1.00 to
$2.00. Subsequent hours will remain at $.50 per hour. Anticipated revenue
increase of $142,308.
• REDUCE number of hours of operation in the Iowa Street Ramp cashier office
from 52.5 hours per week to 15 hours per week. Operating only during peak
hours potentially 3:00 P.M. until 6:00 P.M. Anticipated savings of $40,000
annually.
These adjustments combined have a projected budget impact of $348,618. With
approval of all of the above recommendations, the Fiscal Year 2015 budget would go
from a deficit of $296,714, to a projected surplus of $51,904, which provides a cushion if
higher fines create greater compliance.
The Fiscal Year 2015 budget and changes that have occurred during Fiscal Year 2014
increase the full -time personnel complement by 6.45 FTE, decrease the part -time
equivalents by 5.82 FTE, and increase the seasonal by 2.92 FTE.
The City's request to HUD to fund the three Family Self Sufficiency workers through
December 31, 2014, was only approved for one worker. This budget funds the other
two through December 31, 2014, when the City will have a choice to compete for
another year of federal funding for all three positions.
42
The changes in FTEs can be summarized as follows:
Total Amended FTE's FY14
702.39
PT Clerk Typist to FT (Affordable Health Care Act)
+0.11
PT Building Services Custodian I to FT (Affordable Health Care Act)
+0.28
PT Animal Control Officers (Reduced to 29 Hours Per Week)
-0.06
FT Facilities Supervisor (Approved FY13 - Port of Dubuque Marina)
+1.00
Seasonal Marina Cashier /Clerk (Approved FY13 - Port of Dubuque Marina)
+0.97
Seasonal Marina Dock Worker (Approved FY13 - Port of Dubuque Marina)
+0.67
PT Recreation Maintenance Worker (Reduced to 29 Hours Per Week)
-0.03
PT Multicultural Family Center Assist. Director (Reduced to 29 Hrs. Per Week)
-0.03
PT Recreation Field Supervisor (Reduced to 29 Hours Per Week)
-0.03
Seasonal Assistant Golf Pro (Weekend Tournaments /Cover Concessions)
+0.78
Seasonal Golf Pro Shop Attendant (Reduced to 29 Hours Per Week)
-0.03
Seasonal Recreation Concession Worker (Hours Shifted to Asst. Golf Pro)
-0.44
FT Library Aide (Reclassified to Library Assistant)
-1.00
FT Library Assistant (Reclassified from Library Aide)
+1.00
PT Librarian I (Reflects Hours Worked)
+0.01
FT Transit Bus Operator (Affordable Health Care Act)
+1.68
PT Transit Bus Operator (8 Hours Saturday Paratransit Service)
+0.20
PT Transit Dispatcher (Reflect Hours Worked)
-0.02
FT Public Works Sanitation Driver (Reflect Hours Worked)
-0.25
Seasonal Public Works Sanitation Driver (Reflect Hours Worked)
+0.08
Seasonal Public Works Laborer (Reflect Hours Worked)
+0.64
PT Parking Laborer (Delay of Intermodal Facility)
-0.50
PT Parking Ramp Cashier (Reduced Cashier Hours Iowa Street Ramp)
-1.12
FT Housing Section 8 Inspector (Reduced Vouchers /Reduced Units)
-1.00
PT Housing Section 8 Receptionist (Direct Lines /Reduced Calls)
-0.72
FT PIO Communications Specialist (Bee Branch Watershed Project)
+1.00
Seasonal Architectural Interns (ADA Compliance)
+0.25
PT Finance Cashier to FT (Affordable Health Care Act)
+0.11
Total Recommended FTE's FY 2015
705.94
In Fiscal Year 1981, the City of Dubuque had 588.25 full -time employees. Despite the
addition of many new services, like recycling, inspections, etc., the City today has
568.42 full -time employees (assuming this budget recommendation is approved), 3.4%
fewer than in 1981.
Since we do not yet know the Fiscal Year 2015 levies of the other cities, the following
compares Dubuque's proposed Fiscal Year 2054 rate with the actual Fiscal Year 2014
rates of the other nine large cities in the State of Iowa.
43
520
518
N
516
N 514
S 512
0510-
0
58 -
54
52 -
50
FY 2014 Property Tax Rates vs. Dubuque FY 2015
512.68
0.86 $11.03
515.71 $16.20
515.22
$17.49 $17.59 517.75
16.78 $16.81
0
West Des Moi
0
Average w/o Dubuque
T r a
U
> 3
0J3 0
Des Moines
0
0
Dubuque's recommended City property tax rate ($11.03) is the second lowest in
the State, as compared to the Fiscal Year 2014 rate for the other cities in the State
of Iowa with a population over 50,000. The highest- ranked city (Council Bluffs -
$17.75) is 61% higher than Dubuque's rate, and the average of the other 9 cities
($15.71) would be 42% higher than Dubuque. It is unlikely that the other cities will
not increase their property tax rate in Fiscal Year 2015.
44
How does the City of Dubuque compare with property tax revenue per capita?
$1,000
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
Property Taxes Per Capita
$565 $572
$430 $433 $445
$639
$673
$687
$771
707
$899
Dubuque Arne Sioux City Des Moines Waterloo Avera e Davenport Council Cede Iowa C ty West Des
w/o Bluffs Rapids Moines
Dubuque
Dubuque has lowest property taxes per capita for the City portion of the property
tax bill in the State for the comparison cities. The highest- ranked city (West Des
Moines - $899) is 109% higher than Dubuque's rate, and the average ($639) is 49%
higher than Dubuque.
The taxable value of residential realty will be 54.400% of assessed value in Fiscal Year
2015, compared to 52.817% in Fiscal Year 2014. This percentage is also applied to
farm dwellings. No adjustments were ordered for commercial, industrial, railroad, and
utility property because there were not sufficient increases in values to qualify for
reductions. These properties are assessed on the basis of their market value.
Agricultural property will be limited to 43.400% of the assessed value in Fiscal Year
2014, compared to 59.933% in Fiscal Year 2014. Agricultural property, excluding
agricultural dwellings, is assessed according to its productivity rate.
Overall, taxable property values in the City of Dubuque grew 3.34% in Fiscal Year 2015.
45
WATER RATE
I am recommending a 5% increase in the water rates. Water Department Manager
Bob Green has contacted other cities in Iowa with a population over 50,000 that use a
water softening process, to determine the recommended water rates for these
communities for Fiscal Year 2015. In spite of the recommended water rate increase,
Dubuque would remain second- lowest water rate in the State of these seven
communities.
$35 -
$30 -
$25
m
$20 -
$5
$0
Proposed Water Rates (FY 15)
$23.18 $23.23 $25.64 $24.93
$28.77 $30.30
$26.85 $27.13
Des Moines Dubuque Council BluffsCedar Rapids Average wlo Ames Iowa City West Des
Moines
For Fiscal Year 2015, the highest- ranked city (West Des Moines - $30.30) is
Dubuque
approximately 24.23% higher than Dubuque, and the average ($26.85) is
approximately 10.32% higher than Dubuque.
46
1
SANITARY SEWER
I am recommending a 5% increase in the Sanitary Sewer Rate. Water & Resource
Recovery Center Manager Jonathan Brown has contacted other cities in Iowa with a
population over 50,000 to determine the recommended sewer rates for these
communities for Fiscal Year 2015. Dubuque would be the sixth - lowest sewer rate in
Fiscal Year 2014 (the same as in Fiscal Year 2013).
$45 -
$40
$35
$30
$15 -
$10-
$5
$0
Proposed Sewer Rates (FY 15)
$21.93 $22.40
$17.21 •
V
$30.45 $31.02
1
$27.34
$38.79
$34.55 $36.00 $36.08 $36.10
1
EP
Council Cedar Waterloo Average Ames Dubuque Sioux City Davenport Iowa Cry West Des Des Moines
Snuffs Rapids w/o
Dubuque
Moines
For Fiscal Year 2015, the highest - ranked city (Des Moines - $38.79) is
approximately 15.76% higher than Dubuque, and the average ($30.45) is
approximately 5% lower than Dubuque.
47
The solid waste collection fees in Fiscal Year 2013 are recommended to increase
5 %.
$25 -
$20
a°'i $15
u-
$10.55 $11.69 $11.23
0$10 -
Proposed Solid Waste
Collection Rates (FY 15)
$5
$a
$14.85
$15.30 $15.90
$12.50 $138
$19.55 $19.63
$18.00
West Des Oes Moines Davenport Waterloo Dubuque Average Sioux City Iowa City Council Ames Cedar
Moines w/o
Dubuque
Bluffs Rapids
For Fiscal Year 2015, the highest - ranked city (Cedar Rapids - $19.63) is
approximately 57% higher than Dubuque, and the average ($14.85) is
approximately 19% higher than Dubuque. In Fiscal Year 2015, Dubuque will have
the fifth - lowest refuse collection rate, assuming other cities do not increase rates.
In Fiscal Year 2014, Dubuque had the third - lowest refuse collection rate.
In Fiscal Year 2015, the average homeowner will pay $68.09 more for City
services, including property taxes, sanitary sewer, water, refuse and stormwater,
than in 2014 — an average increase of just $37.86 per year since 1996.
Dubuque's Rankings among
Iowa's 10 Largest Cities
ISSUE
RANK
Property Tax Rate per Capita
LOWEST
City Property Tax Rate
2nd LOWEST
Water Rate
2nd LOWEST
Refuse Collection Rate
5th LOWEST
Sanitary Sewer Rate
5th LOWEST
Stormwater Rate
2nd HIGHEST
48
IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE
ACTUAL CHANGE
CITY TAX PERCENT IF HTC DOLLAR
ACTUAL - PAST HISTORY CALCULATION CHANGE 100% CHANGE
FUNDED
FY 1989
FY 1990
FY 1991
FY 1992
FY 1993
FY 1994
FY 1995
FY 1996
FY 1997
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
FY 2003
FY 2004
FY 2004
FY 2005
FY 2005
FY 2006
FY 2006
FY 2007
FY 2007
FY 2008
FY 2008
FY 2009
FY 2009
FY 2010
FY 2010
FY 2011
FY 2011
FY 2012
FY 2012
FY 2013
FY 2013
FY 2014
FY 2015
"City" Property Tax
"City" Property Tax
"City" Property Tax*
"City" Property Tax
"City" Property Tax*
"City" Property Tax
"City" Property Tax*
"City" Property Tax
"City" Property Tax*
"City" Property Tax
"City" Property Tax*
"City" Property Tax
"City" Property Tax
"City" Property Tax
"City" Property Tax*
"City" Property Tax
With Homestead Adj.
"City" Property Tax*
With Homestead Adj.*
"City" Property Tax(1)
With Homestead Adj. (1)
"City" Property Tax *(2)
With Homestead Adj.*
"City" Property Tax
With Homestead Adj.
"City" Property Tax
With Homestead Adj.
"City" Property Tax
With Homestead Adj.
"City" Property Tax
With Homestead Adj. (3)
"City" Property
With Homestead Adj. (3)
"City" Property
With Homestead Adj. (3)
"City" Property
"City" Property
$ 453.99
$ 449.94
$ 466.92
$ 483.63
$ 508.73
$ 510.40
$ 522.65
$ 518.10
$ 515.91
$ 512.25
$ 512.25
$ 511.38
$ 511.38
$ 511.38
$ 485.79
$ 485.79
$ 493.26
$ 485.93
$ 495.21
$ 494.27
$ 504.62
$ 485.79
$ 496.93
$ 496.93
$ 510.45
$ 524.53
$ 538.07
$ 538.07
$ 550.97
$ 564.59
$ 582.10
$ 611.19
$ 629.78
$ 661.25
$ 672.76
$ 705.71
$ 728.48
- 11.40%
- 0.89%
+ 3.77%
+ 3.58%
+ 5.19%
+ 0.30%
+ 2.43%
0.87%
0.42%
0.71%
0.00%
0.17%
0.00%
0.00%
5.00%
+ 1.54%
+ 0.40%
+ 1.90%
- 1.52%
+ 2.72%
+ 5.41%
+ 2.40%
+ 5.65%
+ 8.19%
+ 6.82%
+ 4.90%
+ 3.23%
0.00%
+ 0.03%
+ 1.72%
1.72%
0.00%
+ 2.76%
+ 0.00%
+ 2.47%
+ 5.00%
+ 5.00%
- $ 58.39
- $ 4.04
+$ 16.98
+$ 16.71
+$ 25.10
+$ 1.51
+$ 12.41
- $ 4.54
- $ 2.19
-$ 3.66
$ 0.00
- $ 0.87
$ 0.00
$ 0.00
-$ 25.58
$ 0.00
+$ 7.46
+$ 0.14
+$ 1.95
+$ 8.34
+$ 9.41
-$ 8.48
-$ 7.69
$ 0.00
+$13.52
+$14.08
+$27.62
+$ 0.00
+$12.90
+$13.62
+$31.13
+$29.09
+$47.68
+$31.47
+$42.98
+$32.95
+$22.77
Average FY 1989 -FY 2015 with Homestead Adj. + 1.39% + $ 8.00
Average FY 1989 -FY 2015 without Homestead Adj. + 0.71 % + $ 4.35
49
PROJECTION **
FY 2016 "City" Property Tax*
FY 2017 "City" Property Tax
FY 2018 "City" Property Tax*
FY 2019 "City" Property Tax
CITY TAX
CALCULATION
$ 755.31
$ 777.96
$ 811.42
$ 843.89
PERCENT
CHANGE
+ 3.68%
+3.00%
+4.30%
+4.00%
DOLLAR
CHANGE
+$ 26.83
+$ 22.65
+$ 33.46
+$ 32.47
* Denotes year of State - issued equalization orders.
^ Impact to the average homeowner if the State funds the Homestead Property Tax Credit at 62 %.
(1) The Fiscal Year 2006 property tax calculation takes into account the 6.2% valuation increase for the
average residential homeowner as determined by the reappraisal.
(2) Offsets the impact of the State reduced Homestead Property Tax Credit in Fiscal Year 2005 & 2006.
(3) The City adopted a budget in Fiscal Year 2011 and 2012 that provided no increase to the average
homeowner. The State of Iowa under funded the Homestead Property Tax Credit in both years costing the
average homeowner an additional $18.59 in Fiscal Year 2012 and $11.51 in Fiscal Year 2013. This
provided no additional revenues to the City, as this money would have come to the City from the State if
they appropriated the proper amount of funds.
* 2002 -2003
* 2003 -2004
* 2004 -2005
* 2005 -2006
* 2006 -2007
* 2007 -2008
* 2008 -2009
* 2009 -2010
* 2010 -2011
* 2011 -2012
* 2012 -2013
2013 -2014
State of Iowa Homestead Property Tax Credit History
Funded 100% of the Homestead Property Tax Credit
Funded 85% of the Homestead Property Tax Credit
Funded 81 % of the Homestead Property Tax Credit
Funded 78% of the Homestead Property Tax Credit
Funded 77% of the Homestead Property Tax Credit
Funded 73% of the Homestead Property Tax Credit
Funded 72% of the Homestead Property Tax Credit
Funded 72% of the Homestead Property Tax Credit
Funded 64% of the Homestead Property Tax Credit
Funded 62% of the Homestead Property Tax Credit
Funded 78% of the Homestead Property Tax Credit
Funded 100% of the Homestead Property Tax Credit
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 property tax collections, but provides tax relief for the
average homeowner.
Beginning 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.
50
IMPACT ON COMMERCIAL PROPERTY - EXAMPLE
CITY TAX PERCENT DOLLAR
ACTUAL - PAST HISTORY CALCULATION CHANGE CHANGE
FY 1989 "City" Property Tax $2,106.42 - 15.43% -$ 384.19
FY 1990 "City" Property Tax $2,086.50 - .95% - $ 19.92
FY 1991 "City" Property Tax* $2,189.48 + 4.94% +$ 102.98
FY 1992 "City" Property Tax $2,280.18 + 4.14% +$ 90.70
FY 1993 "City" Property Tax* $2,231.05 - 2.15% -$ 49.13
FY 1994 "City" Property Tax $2,250.15 + 0.86% +$ 19.10
FY 1995 "City" Property Tax* $2,439.60 + 8.42% +$ 189.45
FY 1996 "City" Property Tax $2,439.60 + 0.00% +$ 0.00
FY 1997 "City" Property Tax* $2,659.36 + 9.01 % +$ 219.76
FY 1998 "City" Property Tax $2,738.43 + 2.97% +$ 79.07
FY 1999 "City" Property Tax* $2,952.03 + 7.80% +$ 213.60
FY 2000 "City" Property Tax $2,934.21 - 0.60% -$ 17.82
FY 2001 "City" Property Tax $2,993.00 + 2.01 % +$ 58.86
FY 2002 "City" Property Tax $2,910.25 - 2.77% -$ 82.84
FY 2003 "City" Property Tax* $3,186.27 + 9.48% +$ 276.03
FY 2004 "City" Property Tax $3,278.41 + 2.89% +$ 92.15
FY 2005 "City" Property Tax* $3,349.90 + 2.18% +$ 71.48
FY 2006 "City" Property Tax (1) $3,152.52 - 5.89% -$ 197.38
FY 2007 "City" Property Tax* $3,538.03 +12.23% +$ 385.50
FY 2008 "City" Property Tax $3,668.64 + 4.26% +$ 150.62
FY 2009 "City" Property Tax* $3,524.48 - 3.63% -$ 133.94
FY 2010 "City" Property Tax $3,524.48 - 0.85% -$ 30.23
FY 2011 "City" Property Tax $3,585.16 + 1.72% +$ 60.68
FY 2012 "City" Property Tax $3,736.64 + 4.23% +$ 151.48
FY 2013 "City" Property Tax $3,855.96 + 3.19% +$ 119.32
FY 2014 "City" Property Tax $3,942.14 + 2.24% +$ 86.20
FY 2015 "City" Property Tax* $3,896.93 - 1.15% -$ 45.21
Average FY 1989 -2015 + 1.82% +$ 52.09
PROJECTION **
FY 2016 "City" Property Tax*
FY 2017 "City" Property Tax
FY 2018 "City" Property Tax*
FY 2019 "City" Property Tax
$3,640.37
$3,624.38
$3,693.15
$3,752.84
- 6.58% -$ 256.56
- 0.44% - $ 15.99
+ 1.90% + $ 68.77
+ 1.62% + $ 59.69
* Denotes year of State - issued equalization orders
(1) The Fiscal Year 2006 property tax calculation takes into account the 3% valuation decrease for
commercial property as determined by the reappraisal.
(2) Fiscal Year 2015 is the first year of the Business Property Tax Credit estimated at
$148 and rollback to 95 %. Fiscal Year 2016 the rollback is 90 %.
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IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE
CITY TAX PERCENT
ACTUAL - PAST HISTORY CALCULATION CHANGE
FY 1989 "City" Property Tax $5,900.35 - 15.40%
FY 1990 "City" Property Tax $5,844.55 - .90%
FY 1991 "City" Property Tax $6,133.00 + 4.90%
FY 1992 "City" Property Tax $6,387.05 + 4.10%
FY 1993 "City" Property Tax $6,249.45 - 2.20%
FY 1994 "City" Property Tax $6,302.95 + 0.90%
FY 1995 "City" Property Tax $5,891.05 - 6.50%
FY 1996 "City" Property Tax $5,891.05 + 0.00%
FY 1997 "City" Property Tax $5,690.75 - 3.40%
FY 1998 "City" Property Tax $5,700.56 + .17%
FY 1999 "City" Property Tax $5,536.70 - 2.87%
FY 2000 "City" Property Tax $5,358.00 - 3.23%
FY 2001 "City" Property Tax $5,533.00 + 3.28%
FY 2002 "City" Property Tax $5,380.42 - 2.77%
FY 2003 "City" Property Tax $5,106.00 - 5.10%
FY 2004 "City" Property Tax $5,136.50 + .60%
FY 2005 "City" Property Tax $5,036.00 - 1.96%
FY 2006 "City" Property Tax(1) $5,814.61 +15.46%
FY 2007 "City" Property Tax $5,983.21 + 2.90%
FY 2008 "City" Property Tax $6,184.95 + 3.37%
FY 2009 "City" Property Tax $5,976.44 - 3.37%
FY 2010 "City" Property Tax $5,909.69 - 1.12%
FY 2011 "City" Property Tax $6,011.44 - 1.72%
FY 2012 "City" Property Tax $6,265.43 + 4.23%
FY 2013 "City" Property Tax $6,465.48 + 3.19%
FY 2014 "City" Property Tax $6,610.00 + 2.24%
FY 2015 "City" Property Tax $6,131.80 - 7.23%
Average FY 1989 -FY 2015 - 0.46%
PROJECTION **
ACTUAL - PAST HISTORY
FY 2016 "City" Property Tax
FY 2017 "City" Property Tax
FY 2018 "City" Property Tax
FY 2019 "City" Property Tax
CITY TAX PERCENT
CALCULATION CHANGE
$5,778.23 -5.77%
$5,768.91 -0.16%
$5,871.66 +1.78%
$5,959.62 +1.50%
(1)The Fiscal Year 2006 property tax calculation takes into account the 19.9%
industrial property as determined by the reappraisal.
2) Fiscal Year 2015 is the first year of the Business Property Tax Credit
$148 and rollback to 95 %. Fiscal Year 2016 the rollback is 90 %.
52
DOLLAR
CHANGE
- $1,074.65
- $ 55.80
288.45
254.05
137.60
53.50
411.90
0.00
200.30
9.81
163.86
178.70
175.55
153.13
274.40
30.50
100.50
778.61
168.60
201.74
208.51
66.75
101.75
254.00
200.04
144.53
478.20
31.23
DOLLAR
CHANGE
-$ 353.57
-$ 9.32
+$ 102.75
+$ 87.96
valuation increase for
estimated at
History of Increases in Property Tax Askings
% Change
Fiscal "City" Property in Tax Present Impact on
Year Tax Askings Askings Homeowner*
FY 1989 $10,918,759 -12.0% Sales Tax -11.4%
initiated
FY 1990 $10,895,321 - 0.2% - 0.9%
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% + 0.3%
FY 1995 $13,715,850 + 3.1 % + 2.4%
FY 1996 $14,076,320 + 2.6% - 0.9%
FY 1997 $14,418,735 + 2.4% - 0.4%
FY 1998 $14,837,670* + 2.9% - 0.7%
FY 1999 $15,332,806* + 3.3% 0.0%
FY 2000 $15,285,754 - 0.3% - 0.2%
FY 2001 $15,574,467 + 1.9% 0.0%
FY 2002 $15,686,579 + 0.7% 0.0%
FY 2003 $15,771,203 + 0.5% - 5.0%
FY 2004 $16,171,540 + 2.5% 0.0%
FY 2005 $16,372,735 + 1.2% 0.0%
FY 2006 $16,192,215 - 1.1% + 1.7%
FY 2007 $17,179,994 + 6.1 % - 1.7%
FY 2008 $18,184,037 + 5.8% 0.0%
FY 2009 $18,736,759 + 3.0% +2.8%
FY 2010 $19,095,444 + 1.9% 0.0%
FY 2011 $19,878,962 + 4.1 % +2.5%
FY 2012 $21,284,751 + 7.1% +5.0%
FY 2013 $22,758,753 + 6.9% +5.0%
FY 2014 $23,197,623 + 1.9% +4.9%
FY 2015 $25,527,366 +10.0% +3.2%
Average FY 1989 -2015 + 2.77% +0.70%
*Without TIF Accounting change. **Does not reflect State unfunded portion of
Homestead Credit.
The Diamond Jo expansion opened on December 2, 2008 tracking fairly closely to the
need to increase property tax revenues with the corresponding decreases in the
Dubuque Racing Association lease payments.
53
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
Year Tax Askings (000)
FY 2014 $23,198
FY 2015 $25,527 + 10.04%
FY 2016 $26,393 + 3.39%
FY 2017 $26,940 + 2.07%
FY 2018 $27,825 + 3.28%
FY 2019 $28,828 + 3.60%
% Increase
% / $ Impact on Avg.
Residential Property*
Impact on Tax Askings and Average Residential Property
The following is a historical City tax rate comparison:
Fiscal
Year
FY 1987
FY 1988
FY 1989
FY 1990
FY 1991
FY 1992
FY 1993
FY 1994
FY 1995
FY 1996
FY 1997
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
"City"
Tax Rate
14.5819
13.9500
11.8007
11.6891
12.2660
12.7741
12.4989
12.6059
11.7821
11.7821
11.3815
11.4011
11.0734
10.7160
11.0671
10.7608
10.2120
10.2730
10.0720
9.6991
9.9803
10.3169
9.9690
9.8577
10.0274
10.4511
10.7848
11.0259
FY 2015 11.2059
Average FY 1987 -2015
54
+3.23% / +$22.77
+3.68% / +$ 26.83
+3.00% / +$ 22.65
+4.30% / +$ 33.46
+4.00% / +$ 32.47
% Change
in Tax Rate
-4.33%
-15.41%
-0.95%
4.94%
4.14%
-2.15%
0.86%
-6.54%
0.00%
-3.40%
0.17%
-2.87%
-3.23%
3.28%
-2.77%
-5.10%
0.60%
-1.96%
-3.70%
2.90%
3.37%
-3.37%
-1.12%
1.72%
4.22%
3.19%
2.23%
0%
-0.90%
PROJECTIONS
Fiscal "City" % Change
Year Tax Rate in Tax Rate
FY 2016 11.1333 +0.97%
FY 2017 11.1680 +0.31%
FY 2018 11.3449 +1.58%
FY 2019 11.4921 +1.30%
The Keys to Dubuque's Financial Success are:
• a continued growth in assessed property valuation (3.64% in Fiscal Year 2015);
• efficient operation with a 3.4% (19.83 full -time equivalent) full -time reduction in
the City's workforce since the 1980s;
• increased use of grants, mostly federal (Over $385 million in the last five years);
• diversified revenue streams including local option sales tax, utility franchise fee,
cable franchise fee, stormwater utility fee, gaming, land leases, etc.;
• reduction in debt supported by the property tax debt service levy, now only
0.44% of debt;
• increased public /private partnerships;
• entrepreneurial City Council policy decisions;
• planning, partnerships and people (engagement, leadership and execution); and
• caring citizens, significant business investments, committed elected officials,
hard - working not - for - profits, and talented city employees.
An article in the National Civic Review about the National Civic League Civic Index
written by Editor Michael McGrath says, "Civic pride is the glue that makes communities
capable of overcoming challenges and divisions and working together toward common
solutions and the common good. Community vision is what gives them the road map
they need to get where they want to go."
In the same article he says, "A community must have strong leaders from all sectors
who can work together with citizens to reach consensus on strategic issues that face
the community and its region. Committed individuals help develop a community's
capacity to solve problems, and communities must resolve to increase their problem -
solving capacity."
The article goes on to say, "The seven components of the Civic Index are used to
identify and measure those capacities and qualities that explain why some communities
seem more able than others to address tough challenges."
55
"The seven capacities we have identified as most important for communities to focus on
are:
1. Participation and civic engagement
2. Diversity and inclusiveness
3. Networking, information and communications
4. Decision making and consensus building
5. Partnerships and collaboration
6. Leadership
7. Community vision and pride
The National Civic League has provided a road map that Dubuque closely follows.
As you review this budget recommendation, you will note that it is supportive of the
Sustainable Dubuque initiative. Through this lens, we strive to meet the environmental,
economic, and social equity needs of today without reducing the ability of future
generations to meet their needs. Each activity supports at least one, and in most cases
several, of the Sustainable Dubuque principles.
I want to thank the citizens and businesses of Dubuque for deciding that they prefer the
price of progress over the higher price of stagnation and decline. None of the progress
this community is experiencing would be possible without the citizens' determination,
the business investment, the leadership of Mayor Roy BuoI and the City Council, the
tremendously talented City employees, and the robust partnerships with local not -for-
profits and different levels of government.
I want to thank Budget Director Jennifer Larson, Assistant City Manager Cindy
Steinhauser, Senior Budget Analyst Mary Brooks, Public Information Officer Randy
Gehl, Office Manager Juanita Hilkin, Secretary Deb Searles, Secretary Stephanie
Valentine, and Communications Assistant Natalie Riniker, for all their hard work and
dedication in preparation of this budget recommendation.
I look forward to City Council questions and input as you review this budget
recommendation and then this will be implemented according to your final decisions and
direction.
MCVM:jh
56
Michael C. Van Milligen