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Fiscal Year 2015 Recommended Budget Transmittal Message Slide PresentationMasterpiece on the Mississippi Fiscal Year 2015 Recommended Budget Annual Goal- Setting Sessions DUBUQUE CITY COUNCIL el Ave11 Roy D. Buol 2B400eceel fit. i Dubuque. Iowa 5£001 Phone: 5631564 -5455 a81010011 h' berme erg . Expires. Dec. 31, 2217 RIF W. lees 1220 Doreen 6Y. Mum.. lees 5£003 inne: ' Get 555 -3490 eicityutaubugle.ag Cypher. Dec 31,261? ACE F. Remick pine Sl. Iona 55001 :15631 5e2 321; OIck4)c,IryNsbcqueui flukes: Dec 31.2'115 ST WARD , kavin J. Lynch 74? Dmuxvien £q. 00071w. Iowa 52002 :15631 582 -2655 cinp40ubugue.o 0 Expires: Dec. 31.2011 tEI :r ND WAIT Maria A. Bralg 1745 Lams 3115 7 mr5oa oe Iowa 574111 ' phone: 15631 582 2295 kbmi cilWrdubuque.org Tem xpi ca.. Tsr 31.7515 171185 WORD loyre C. Camas 660 Edith St. 'k.,,uque. Iowa 52001 '5631562 -3847 sthcl tdWmque.og 201? 870 Yale Ct.. 71 Dubuque, mea 52001 Mom: 15631303 -0120 Ismlonta edyotdutue ue.arg Tenn Expires, Dec. 3t. 2015 CITY COUNCIL MEETINGS The Dd011310 City Council meets on Ihetirst and third Mostly of each m3otr in the CCiy Council Chambers en the second floor of the Historic. Federal Building at 350 West Sixth Street. Meetings begin al 6:30 p.m. ant am broadcast live ere CiyChannel. Cubuques local gmrerrmenf access channel (85.2 digital, 8 analog) on the Meiiacon cable system. Meetings are also streamed live and archived on the City websito, wonveityoidubuque.orgSnedia. For agenda and minter infefmatioe, vise Srwwcllymfdub300a. of lcitycouncil or melted ire City Cle Ms Office at (563)583 -41220 or cityclerk @cityefduhuque.org CITY COUNCIL GOALS & PRIORITIES Each year, the Du2Uglle City Council canlhletes its animal goal - selling sessiaus. Ovet Ito course ai Iwo days in August. City Coum:il members reaffirmed the 15 -year vision statement, missiun statement, and devek'ped priurities Mr a 2013 -?015 poiiCy agenda. 2028 VISION STATEMENT The city of Dubuque is a progressive. suatairable city with a strong diversified economy end expanding global connections. The Du50quo community is an inclusive community celebratirg culture and heritage erd has actively preserved our Masterpiece en the Mississippi. Dubuque citizensetpedence healthy living and retirement through quality. livable neighborhoods with an abundance of We 1111'01 ludo; and ale engaged iii the cum min uily, achieving goals Hncugli padnerstips. DubuqueCity governments financially sound and is prodding services with citizens getting value for their car dollar. CITY MISSION STATEMENT Thee ty's mission is to delkrer excellent municipal services that support urban living and a sustainable city plan for the community's failure and facilitate access to critical human services which moult in financially sound government and citizers getting services and value ter !hair tea dollar FIVE -YEAR COMMUNITY GOALS FOR A SUSTAINABLE DUBUQUE • Economic Prosperity • Socia1Cultural Vibrancy • Environmental Integrity FIVE -YEAR CITY GOALS • Planned and Managed Growth • Partnering fora Better Cubuque • Improved Connectivity — Transportation and Telecommunications FIVE -YEAR ORGANIZATIONAL GOAL • Financially Responsible City Government and lligh Performance Organization POLICY AGENDA 2013 -2015 Top Priorities tin alpliehetjcal ordCQ • Annexation: Dhation a1', specific actions a) study implemerrtatiol. b7 wonder to Airport • Arls and Culture aganizaliuim sly supped Evaluatimr, potential pixels revien and priuilg, overall direction, funding level • Dubuque welcoming, inclusive community: Action plan • FearMniMs Fnundatmn6AF11RI program city supped • Management and Employee Succession Planning ale Funding • Master Plan for Chaplain Schmitt Island: Development • Safe Community Initiative Monitoring, future direction specific actions • Washington Neighborhood Strategy: Business aft- action, HEART program, update musing stock homeownership, promotion. police sunstatinn II • Hee Hranch'njor:l Sieribc prela :ls, n,rschcn. I icding • Clean Air Attainment Strategy • Greater Dubuque Development Corporation supped • Historc Millwork District: Devolopmont, project monitoring • Indoor Aquatic Center Direction • Rivertront Leases: Agreement • Smarter City: Smaller health and 0:1111M, stuarlel travel, smarter (Meerds • Southwest Arterial Project Design. land acquisition, ntemecting roads MANAGEMENT AGENDA 2013 -2015 Economic Prosperity Goal • Dubuque lndalnvs: Near Step • W'orklume Markel -Rale Housing • Purina &ere. C'perat anal • Project HOPE Environmental /Ecological Integrity Goal • Susteinabilily Pinches ng Policy and Procedures • Automat i.Vehicle location (AVM for Tmnsl • Grand River Center Electric Meters Ro,e l • City Operations. Susie inabilityPedoenanee Measures • Sustainable Dubuque Comnurity Grart • America's River Ill Task Fare • Plasl c Bag Pedudluu Strategy: Implemeiraliuu • Fats /OilstGrease. Policy program amt= rtcrcemen: • Dubuque Metropolitan Amt Solid Waste Agency (OMASNA) 780 Agreement: Evaluation • Community Climate Action & Resiliency Plan - 50% Cmenhauue Cas Reduction by 0011: Implemenlalicn Social /Cultural Vibrancy Coal • City%edarca Diversity: Recruitment and Sdeollun • Territory Accountability Design: Targeted Actions • Multicultural Family Center BuildingExpansion • Interim lural Compalem:y Fregrain within City 3uvennue :L Sal` Assessment. Iran ng • Intereu fuel Competency Fregmm for the Community: Marketing to School District Nonprofit and Community organizations, Businesses • Police/Race Dialog • City life: Implemertetien • Local ADA Compliance Program • Leadership Enrichment Atter School Program (LEAP) • Firefighter Internship for Recruitment of Diverse Warkfnme • Racial Profiling ProNem Analysis. Acton Plan • Commonly Engagement Strategy, CATACliens Planned & Managed Growth Goal • Inflow and Iniltration Prngam!Home Inspecucns :EPA Consed Decree Implementation • City Con orehensi va Plan Update • Flood Wall: Funding. Fsaluatinn. Cell Protect on • Statewide Urban Design and Specification City Engineering Standards (SODAS) Lit), Engineering Ma- cards: Update • Washington Street New House Units: Sale • Hmtn-ir Preservation Pngran: FBalletic's, Update • Dotartown Loan Program, Im?lemenlaticn • Shoot Thief Street Reservoir Study • Housing Choice Vouclssr Program • Water and S werSerire Extension to City Residents ant Businesses THF. C17704 we•a•. DUB E M slerprnmwv Mississippi ._. For reran Information, call 563.589.4120 or visit loww .citpfdubuque.org /councilgnaIs Partnering for a Better Dubuque Gcal • Parks /SchoolslaiM Projects and Services: City Actions • City dnllinear Pmgram • Development • Sister 'Silt Program: Delegation lu Pulenlial City • Veterans Memorials. Direction • Hand icaa Accessibility far Parke Direction • Bodges Out of PosedyPmgmm: City Supped Improved Connectivity: transportation and TelecnmmunlCallun: • Smart Transportation Program • Traffic Signal Synchronization: Citywide • Amtrak Train Platform (Port of Dubuque): unding • Roundatout: FUNAcquisi:ion a) University /Asbury b) Radford/Pennsylvania • Intennsdal Transparalion FaaHtyir Histcrlc MillworkDis'rict • Air Traffic Ccntrel Tower. Funding Financially ResDnrtslllle City Government and High P:rlformance Organization • Webote Semen) Management (CivicPlus) • 90:1 WH7 Data System: Expansion • Empoyee Wellness Program Five -Year Goals, City Internet Posting • Employee Invo:vemeit Teams: Expansion • Heal:team Cost Containment • Police Dnlcer Recruitment and Potent on • Records Mauagement dad Relenlim • City HallProtocd and Safety • New Computer -Aided Drafting (CADI Software • Emergency Enke Dispatch are Emergency vim Uispaten • new Fire Pumper • Disaster Preparedness and Recovery Plan: Ciscussion • Environmental Sustainabi ity Management System (ESNS): ISO 14301 Made Program • Arlurda lie Cam [c I: A lalysis of howls Najur Projects • State Revolving Fond ISRft green Alley Pruluota • Port of DubuquePan. Development • City Cmenhouse Project • Water & Resource Recovery Center Project • Locust and Iowa Ramps: Renuvatior Project • North Softening Base Reroyalion Pvlcsl • Comiskey Park Improvements • northwest Arterial Trail — Bergfeld Recreation Vail Connection • Smite' Hill Cal Sum-se lrngahun Immune veins • Airport Terminal Project • Elm Street Reconstruction Reject • One Way—Two Way Conversion Project • Ceder Cross Road: Design • Wacker nd 1M( Traffic Si gnali ration Project • North Cascade Road: Design • Write Street Traffic Signal aid Improvements Reconstruction (at 14th and 20r(e) • US 20 /Fremont Avenue Traffic Signal: Upgrades • MN ArtedaVChavenelle Intersection Improvement Project 2 Dubuque MSA Employment 1983.. 37,600 Total Employment 1990 Dec. 201 *4.1% Unemployment 3 Dubuque's Economy • Fastest-growing 111 Iowa in 2012 and the 27th fastest nationally. • Grew 5.1% in 2012 over 2011, more than double the national average (2.5 %). -- September 2013 B BUREAU OF ECONOMIC ANALYSIS U.S. DEPARTMENT OF COMMERCE 4 Dubuque's Economy 10% of Iowa's Non -Farm Employment Growth over the last 4 years with 3% of the state's population 2013: 1,200 jobs (9.38% of the statewide total) 2012: 800 jobs (3.9% of the statewide total) 2011: 1,800 jobs (8.91% of the statewide total) 2010: 1,400 jobs (11.48% of the statewide total) (Data Source: Iowa Workforce Development) 5 Dubuque Economy AVERAGE HOUSEHOLD INCOME: • Rose from $27,027 in 7990 to $40,680 in 2010, a 50% increase. (Source: U.S. Census Bureau) AVERAGE HOURLY WAGE: • Grew from $9.51 in 1991 to $18.86 in 2013, a 98% increase. (Source: Iowa Economic Development Authority) 6 r Median Household Income Dubuque Iowa U.S. 2012 2000 2012 2000 2012 2000 Median Household Income (MHI) $50,885 $39,582 $51,129 $36,469 $51,017 $41,994 MHI in 2012 Dollars $50,885 $54,545 $51,129 $54,389 $51,017 $56,080 % Change in MHI 28.6% 40.2% 21.5% % Change in Inflation - Adjusted MHI -6.7% -6.0% -9.0% • In 2000 the MHI nationally was 6% higher than Dubuque. That gap has been narrowed and it is now less than 1% higher than Dubuque. • Dubuque suffers from the national phenomenon of a drop in MHI, though not as severely as the rest of the country. • Need to keep investing in Economic Development and Community Enhancements. 7 U.S. Change in Per Capita Income: 2000 -2012 Dubqq State of Iowa 32.8% 34.9% 29.9 %l Dubuque exceeds the national growth by 2.9% Unemployment: 2013 Dubuqe Advantage 4.5%.IA7.4% 2.9% A January 1, 2014, Telegraph Herald article reports, "During the past 12 years, residents age 16 or older who are in the labor force has increased to 70.4% in Dubuque County. The number has risen from 67.3% in 1990. The current figure is above the statewide average, where 68.6% of the 16 and older population is in the workforce." 9 Home Price Appreciation: 2008 -2013 Change in FHFA Metropolitan Area House Price Indexes (5 -Year average through 2013Q3) • Dubuque: + 9.71 percent • Sioux City: + 8.83% • Waterloo: + 6.28% • Iowa City: + 5.32% • Quad Cities: + 3.93% • Cedar Rapids: + 1.33% • Council Bluffs: + 1.02% • Nationwide: + 0.15% • Des Moines/West Des Moines: - 0.50% • Chicago: - 18.56% • Daytona Beach: - 24.08% (Source: Federal Housing Finance Agency) 10 Assessed Valuations: 2009 -2013 12% - 10% - 8% - 6% 9.05% 8.08% 5.40% 10.93% 3.26% 8.22% 7.44% 8.41% 6.14% Z\ Upward Mobility Children born in Dubuque are among the most likely in the nation to be upwardly mobile. • Dubuque children born 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. • National average = 10.6% and, of the 741 metropolitan commuting areas examined, places Dubuque in the top 60. • Compared to similar -sized commuting areas (under 200K population), Dubuque ranks first out of 58 • Dubuque ranks first among the ten largest cities in Iowa THE EQUALITY OF OPPORTUNITY PROJECT Raj Chetty, Nathaniel Hendren, Patrick Kline, Emmanuel Saez 12 Dubuque citizens are seeing more employment opportunities, rising wages, and rising home values! Regional Comparison City Population 1 -Year Change in Number of Jobs Decatur, IL Peoria, IL Manhattan, KS Dubuque, IA 75,407 4.3% decrease 115,687 2.2% decrease 56,069 3.5% decrease 57,637 1.35% increase 14 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 Detroit, MI Akron, OH Cincinatti, OH Cleveland, OH Dayton, OH Toledo, OH Youngstown, OH 175,415 125,580 193,317 1,511,482 275,425 452,524 750,903 243,601 383,818 139,788 80,294 75,065 102,434 713,777 199,110 296,943 396,815 141,527 287,208 66,982 - 54.2% - 40.2% - 47.0% - 52.8% - 27.8% - 34.4% - 47.2% - 41.9% - 25.2% - 52.1% 15 one of America's Crown Communities for 2013, 2009, & 2003 AMERICAN an( OUNTY 5th of 179 small cities for the Cost of Doing Business (August 2013) 17 10th Best - Performing Small Metro for 2013 "Dubuque climbed three spots to break into the Top 10. The secrets to its success are five -year high -tech GDP growth and improvements in one- and five- year job and wage growth." (December 2013) MILKEN INSTITUTE CHANGING THE WORLD IN INNOVATIVE WAYS 18 "Top Metropolitan Areas" 5th in the U.S. in 2013 for metro areas with under 200,000 population 19 One of 2013's "10 Great Places to Live" Ki p • anger :irrukii, Trusted Personal Eianc€ Advice and Business Foretasts (July 2013) 20 ((S M A R T E R SUSTAINABLE DUBUQUE))) One of the "Top 25 Innovations in Government." HARVARD Kennedy School ASH CENTER for Democratic Governance and Innovation (May 2013) 21 10t" Most - Secure Small City in the U.S. tvi FARMERS INSURANCE (October 2013) 22z2 #14 on 2013's list of "America's Best Small Cities To Move To" MOVOTO American Society for Public Administration . fref AMERICANS fortheART Profiled in 2013's Public Service Recognition Week supplement of P.A. Times CONp 2014 Public Leadership in the o Arts Award for Local Arts Leadership for cities with a population of less than 100,000 24 Publications Mississippi River Cities & Towns Initiative Participating Cities Year of Change for the River 2013 NATIONAL LEAGUE of CITIES CONNECTING AMERICA'S LEADERS GOVERNING ■ ■ I SUSTAINABLE CITIES • I I INSTITUTE' I I I at the National League of Cities SustainableCitiesCollective H THE HUFFINGTON POST 25 Outside Funding Secured in 2013 $246 million through 17 different programs and grants ranging from $1,500 to $140,000,000 Workforce Issues • "Tsunami" of retirements • Competition for college graduates INCLUSIVE dubuque Connecting People • Strengthening Community /SUSTAINABLE C� DUBUQUE viable • livable • equitable viable • livable • equitable 27 us dubuque Connecting People • Strengthening Community 28 Comprehensive City Plan Comprehensive City Plan prepared for CITY OF DUBUQUE, IOWA FRANK M. JAEGER, Mayor COUNCILMEN ARTHUR M. BENNETT JOHN K. CHALMERS MARK R. KA PETER ScH►I.TZ P. M. EYANS, City Manager M. N. Czlrt=K, City Solicitor NE PLANNING AND ZONING COMMISSION RIGHT REV. MONSIGNOR J. M. WOLFE, Chairman RICHARD V. MCKAY, Secretary DALE D. WELCH, Vice - Chairman R. upR° V V(1cKAY FREDERICK E. BISSEI.I. LOWS C. STOEVREGIiN WILLIAM AVERY SMl'il! JOHN NOLEN, City Planner, Cambri � Mass. ig , JUSTIN R. j-IARTZOG+ Associate, Cambridge, Mass. CULLEN, City Engineer WALTER T Building Commissioner CARL F. ]t)AR•ri- -LS, Sr.PTEMBC•.R f936 • Adopted in 1995, replaced 1936 plan • Updated 2002, 2008, and 2012 • Major rewrite to be done in 2014 29 Supplemental Plans • Historic Millwork District Master Plan • Washington Neighborhood Master Plan • Downtown Master Plan • Annexation Study • Port of Dubuque Master Plan • Drainage Basin Master Plan • Utility Extension Plan • Park Development Plan • Industrial Park Development Plan • Schmitt Island Development Plan • East -West Corridor Study 30 Public Safety 2009 -2011 Average Uniform Crime Report (UCR) Part I Crimes: Rates per 10,000 Population 900 800 770 700 600 545 537 500 33 435 430 418 400 354 328 308 E 254 0 J��Q °Z� °\�2`' �\�P�� a��i� °° QaQ�a`' c� JpJQJe °\S� P�eS otz, L 5v 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 31 Impact of TIF in Dubuque T Total Since 1983 New Investment Retained Jobs New Jobs Total Jobs $556,901,732"i 6,287** 3,341** * as of 3/2/2012 ** as of 12/6/2013 9,628** 32 [Over 1,000 Acres of Industrial ParkslTechnology Parks • Port of Dubuque (1,290 employees) • Dubuque Industrial Center West (1,285 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) TOTAL: Iti; 4 businesses 46 local business expansions 6,443 employees �yt NIL Impact of TIF in Dubuque $1,600,000 $1,500,000 $1,400,000 $1,300,000 $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- City of Dubuque New Taxing Bodies Tax $ - Retiring TIF Districts, in First Year of Expiration $451,506 $1,587,576 • DCSD, $687,574 • City, $519,153 County, $302,815 • NICC, $42,591 • Other, $35,443 $465,880 i DCSD, $201,771 • City, $152,348 • County, $8,862 • NICC, $12,498 • Other, $10,401 $529,994 • DCSD, $229,539 • City, $173,313 County, $101,091 • NICC, $14,218 t Other, $11,832 $9,610 $721,477 • DCSD, $312,469 • City, $235,930 County, $137,615 • NICC, $19,355 • Other, $16,107 Already Tech Park South DICW - Subarea Quebecor -2025 Kerper - 2032 DICW - Subarea Returned to Taxing Bodie: -2019 B -2019 D -2032 Total Annual Return to Schools, County & City = $3,766,044 This is what will go to the Taxing Bodies in the first year after expiration of the Urban Renewal District. Based on current tax rate of Taxing Bodies and 1/1/11 assessed value, even though It is expected that the assessed value would increase before the district expiration. Also, there is still undeveloped property in Tech Park South, Dubuque Industrial Center West - Subarea B, Subarea C & Subarea D. If those sites were developed before expiration at the same general value of the current development, the Tech Park South would generate $1,150,458 in this fiscal year (2019); DICW- Subarea B would generate $3,015,117 (2020); DICW - Subarea C $2,055,916 (2031) & Subarea D $1,570,898 (2031). The projections are based on assessed values increasing 3% each year. Impact of TIF in DubuqueCity of Dubuque New Schools, County, City Tax $ - Full Build -Out of Retiring TIF Districts, In First Year of Expiration $3,000,000 $2,700,000 $2,400,000 $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 $300,000 $1,090,4 99 • Other, $24,346 • NICC, $29,255 • County, $208,002 • City, $356,60 • DCSD, $472,292 $2,857,976 • Other, $63,805 • NICC, $76,673 ■ County, $545,132 • City, $934,587 • DCSD, $1,237,780 $9,610 $1,948,766 o Other, $43,506 • NICC, $52,281 County, $371,709 • City, $637,266 ■ DCSD, $844,004 $529,994 $1,489,027 • Other, $33,243 • NICC, $39,947 • County, $284,018 • City, $486,927 • DCSD, $644,893 Tech Park South - DICW - Subarea B - Quebecor -2025 2019 2019 Kerper - 2032 DICW - Subarea C - DICW - Subarea D - 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. AFOUR, MOUNDS • $5,000 for short- and long -term strategic plan for entire facility • $5,000 for challenge grant for site improvements for the Four Mounds Estate • HEART Program expansion through GHHI • CDBG Funds for Four Mounds Adventure Day Camp Program • Summer Day Camp Counselor Funding • Water Main Extensions ($155,000) 36 watershed Masterpiece on the Mississippi BEE BRANCH WATERSHED FLOOD MITIGATION PROJECT • $98.5 million from the Iowa Flood Mitigation Board in the form of State sales tax increment financing spread over the next 20 years. • over $127 million secured to help fund this $179 million project to save 1,373 homes and businesses from flooding 37 Investments for Progress Increase in CIP Budget Bee Branch Creek Watershed Project Bee Branch Watershed Flood Mitigation Project Phases Phase Phase 1: Carter Road Detention Basin Completed in 2003 $1,076,315 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 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: $4,158,589 $7,917,311 $21,274,685 $2,099,000 $57,420,000 $64,823,636 $3,380,000 $4,360,000 $1,160,000 $3,800,000 $1,520,000 $179,049,536 Total Phases included in 5 -Year CIP: $50,869,221 38 Investments for Progress Increase in CIP Budget Bee Branch Creek Watershed Project • Awarded $98.5 Million State Flood Mitigation Grant • Stormwater Management Utility Rate for FY 2015 recommended to increase from $5.60 to $5.98 per month per Standard Family Unit (SFU) • Prevent an estimated $582 million in damages over the 100 -year design life of the project, with a return on investment of $6.00 for each $1.00 spent! 39 Stormwater UtiI!ty • Current stormwater utility rate is $5.60 per month for the average single - family home • Projecting annual increases to reach $9.00 per month in 2021 • Recommended rate for FY2015 is $5.98 per month 40 Statutory 7 Limit 41 Statutory Debt Limit Used (as of June 30th) 90% 80.63% 80.56% 80% 73.33% 70.56% 72.39% 70% ° 68.77% 63.89% 60.96% 60% 60.22% 57.29% 50% 40% 30% < 14 15 16 17 18 19 20 21 22 23 24 25 -f -Flood Mitigation 41 Total Debt $320 $300 $280 $260 $240 $220 $200 $180 $160 $140 Total Debt (In Millions) $298.9 $298.5 $282.6 $252.6 $263.0 $271 5 $273.3 $241.9 $222.7 $205.4 14 15 16 17 18 19 20 21 22 23 24 25 - -Flood Mitigation 42 Total Debt 90 ,000, 000 80,000,000 70,000,000 60,000,000 50 ,000, 000 40 ,000, 000 30 ,000, 000 20 ,000, 000 10,000,000 Total City Indebtedness Issued /Projected (FY 2003 - FY 2023) I I I I I I I I I I I I I I I I I I I I I 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Fiscal Year Note: FY 2009 Reflects the full amount for the Water & Resource Recovery Center 43 Investments for Progress Impact of Economic Development Property Tax Rebates The City will be at 82% of statutory debt authority after the debt is issued as planned in FY2015. • 34 economic development agreements • $17 million in rebate debt • 9% of statutory debt limit The $17 million is rebating a portion of the businesses annual property tax payment over 7, 10 and 15 years, a payment that would not exist if they did not do the project. Investments for Progress Progress costs money. Stagnation has a cost also. Some of that cost is economic, like decreases in property values, less private investment, no growth in retail sales. Stagnation would contribute to the cost of City services becoming an increasing burden on fewer and fewer people. Stagnation actually has a higher cost than progress. Less jobs for our children and grandchildren, causing them to leave the area. Dubuquers are not interested in repeating that experience from the 1980's. Dubuque has been investing in the future, not spending money on short -term improvements with limited life that will provide only short term gains, but building for a solid future. Investments for Progress City debt capacity is set by state law at 5% of the entire community assessed valuation. All City debt is not counted against that debt capacity. With the issuance of the debt planned in FY2015, the City could be at 82% of the statutory debt authority, which will be the second highest percentage of the 10 cities in Iowa with populations over 50,000. In other words, the City could still issue $35,320,424 in debt, without retiring any existing debt and still not exceed the statutory debt authority. Investments for Progress Impact of Economic Development Property Tax Rebates The City will be at 82% of statutory debt authority after the debt is issued as planned in FY2015. • 34 economic development agreements • $17 million in rebate debt • 9% of statutory debt limit The $17 million is rebating a portion of the businesses annual property tax payment over 7, 10 and 15 years, a payment that would not exist if they did not do the project. Investments for progress Nationally, there are concerns about the annual federal deficit of the federal government and the total debt of the federal government. How does Dubuque compare? Each year the federal government runs a deficit. This year it is projected at $744 billion dollars. That means the federal government will spend more than it receives in revenues this year so it will need to borrow money, not do to capital projects, but to pay its operating expenses. With a $3.778 trillion operating budget this year, the federal government will run a $744 billion deficit. The City of Dubuque has never run a deficit. State law requires cities to have a balanced budget. In fact, each year the City runs a surplus, in other words each year the City of Dubuque brings in more revenue than it spends. The City of Dubuque only borrows money to do capital projects like building a new $64 million replacement for the Water & Resource Recovery Center where sanitary sewer revenue will make the debt payments. 48 Investments for Progress The City of Dubuque does NOT borrow money to pay its operating expenses. On June 30, 2015 the City will have a total debt of $299 million. The City of Dubuque has designated sources of revenue to make all the debt payments. The planned major capital projects the City needed to complete, like the $64 million Water & Resource Recovery Center, the $179 million Bee Branch Watershed Project to save over 1,100 homes and businesses from flooding, will be completed. Each year thereafter the City will decrease the statutory debt authority being used. 81.71% 42.99% 49 Investments for Progress Credit Card Debt Comparison I heard the City debt compared to using a credit card. Once again, the City does not borrow for operating expenses. City debt is more comparable to when a person borrows money to buy a house. The City borrows money for long -term capital projects, not like the use of a credit card by a family. Results City Property Tax Rate per $1,000 Assessed Value $15 $14 $13 $12 $11 $10 $9 $8 City Tax Rate 1 987 -2014 $14.58 $'13:95 $12.77 $12.27 $12.50 12.61 $11.8 o $11.69 $11.78 11.38 $11.07 $11.03 11.0 $10.72 $10.76 10.27 $9.70 $10.32 $10.45 •■•- $9.86 1.•3 I. 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Fiscal Year NO increase in FY2015 51 Results r $90,000,000 $85,000,000 $80,000,000 $75,000,000 $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 - $45,000,000 $40,000,000 $54,152,078.00 Cash Balances $59,133,584.00 $60,526,451.00 $49,110,800.00 $50,135,726.00 $71,378,694.00 $81,746,736.00 $56,059,583.00 $84,032,553.00 78,473,342 $61,565,261.00 6) co 0 �O '� h Ca l rb I O 03 05 (7) O O0 0O O OO O ^O O O O O O 0 O O rcce n Fiscal Year • Low of $49.1 million in FY1995 to the $78 million as of 6/30/2013 • Over $4.9 million in uncommitted cash reserve Accrual basis cash balance at fiscal year end includes investments' market value adjustments and accrued interest. Includes non - spendable trust dollars, funds restricted by outside parties, and unspent bond proceeds. 52 104, 247, 794 Results Top 10 Capital Projects (1997 -2019) 1 2 3 4 6 7 8 9 10 Project Description Bee Branch Watershed Project (Will go to 2033) Southwest Arterial (Now a State Project) Streets Project (Engineering & Public Works) Parking Ramps America's River Project Water and Resource Recovery Center Sanitary Sewer Airport Terminal Project Industrial Parks Stormwater Total Cost $ 179.049.536 135.000.000 73, 476, 725 70.674.035 64.885.000 66.436.188 37, 781,620 36, 096, 331 28, 488, 986 $796,136,215 Note: Streets Project, Sanitary Sewer, and Stormwater is a cumulative amount from FY 1997 to projected FY 2019 53 Results Top 10 Capital Projects (1997 -2019) 67% Federal and State Funding = 33% Federal State City /Other 54 Moody's Credit Rating • Dubuque one of the local governments under review as a result of the publication of Moody's new rating methodology • New methodology doubles the weight in overall assessment on debt and pensions from 10% to 20% , decreases the weight on economic factors from 40% to 30% • Dubuque's General Obligation debt has been placed under review for possible downgrade 55 Moody's Credit Rating Of the 124 cities under review for a possible downgrade, 10 are in Iowa: • Ames • Bettendorf • Cedar Rapids • Davenport • Des Moines • Dubuque • Mason City • Sioux City • Tama County 56 Moody's Credit Rating The last time Moody's changed their criteria in 2010, Moody's upgraded Dubuque's General Obligation Bond rating. Moody's Credit Rating In 2012, the last time Moody's rated Dubuque's General Obligation bonds, Moody's reaffirmed that higher rating. Moody's wrote: "Assignment of the Aal rating reflects the City's role as a regional service and retail provider in northeastern Iowa (issues rating Aaa 7 stable outlook) and neighboring states; satisfactory reserves despite recent funding of capital projects; and an above- average debt burden supported by alternate non -tax levy revenue sources." 58 Moody's Credit Rating What has changed? The only change from Moody's 2012 comments is that now each city is accorded a share of any unfunded liability in the state pension systems. The state sets the benefit levels, so the state needs to help address the unfunded liability. 59 Moody's Credit Rating Dubuque's bond rating is currently Aal, the second - highest possible. • In 2009 Dubuque was at Aa2. (3rd highest) • In 2002 Dubuque was at Aa3. (4t" highest) • Dubuque has increased 2 steps since 2002. Moody's Credit Rating Dealing with the unfunded state pension liability and the projected decrease of City debt over the next 10 years should strengthen Dubuque's bond rating. Moody's Credit Rating Our realistic and achievable goal will be to attain a AAA bond rating, the highest available, within 10 years. Investments for Progress Increase in CIP Budget Federal Mandated ADA Standards • January 1, 2014, any alterations to an existing street's crosswalk, including asphalt resurfacing ( "mill and fill "), will require that existing curb ramps be brought up to the latest ADA standards • Overlay program halved from 10 to 5 centerline miles for FY15 • Monies needed for curb ramps is more than triple from the past years Since 1993, 190.55 centerline miles of Dubuque streets have been paved by City crews, more than half of the City's 309.87 total street miles 63 Investments for Progress Increase in CIP Budget TIF Borrowing • Central Avenue Streetscape $275,000 • Future Industrial Park Acquisitions $2,000,000 • Homeownership Grants in Targeted Neighborhoods & Purchase /Rehab /Resale $4,678,000 • Historic Millwork District Subarea Building Incentive $1,800,000 • Chavenelle Road Rehabilitation $835,000 • Downtown Housing Creation Program $254,920 64 as a) 4-0 s- < mr4 52 3 -C -1-. 0 0 in •O Investments for Progress Southwest Arterial • FY2015 - FY2019 CIP has been updated to more accurately reflect project development which will occur based on the Memorandum of Understanding (MOU) agreement between the City and the State • 5 Year CIP includes $20,407,795 — $2,062,768 Dubuque County TIME 21 funds — $18,180,027 Federal and State funds • 26 properties purchased & remaining 26 properties purchased summer of 2015 66 Investments for Progress Southwest Arterial MOU • Re -route a portion of U.S. 52 in Dubuque County • Transfer the jurisdiction of the Southwest Arterial from the City to the State of Iowa • Transfer of jurisdiction from the State of Iowa to City: -- Northwest Arterial (Iowa 32) -- Portions of existing U.S. 52 /Iowa 3 from the Iowa 32 /John Deere Road intersection to the intersection of U.S. 61 in downtown Dubuque • State will then be responsible for the rest of this $140 million project 67 Keys to Financial Success: City of Dubuque Full -Time Employee Complement • 1981 = 588 • 1993 = 510 • 2015 = 568 27 fewer employee a 4.7% reduction Since 1981, the City has added 29 police officers, 7 engineering staff, and 5 emergency communications staff. 68 FY2015 Recommended Property Tax Rate • $11.0259 per $1,000 assessed value • No increase in the property tax rate over FY2014 • 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. 69 Tax Rate Comparisons Dubuque is the SECOND LOWEST of the ten cities in the State of Iowa with a population over 50,000, assuming none of the cities change their property tax rates . The highest - ranked city (Council Bluffs- $17.75) is 61% higher than Dubuque's rate, and the average ($15.71) is 42% higher than Dubuque. 70 Keys to Financial Success: Fiscal Benchmarks Property Tax Rates Tax Rate per $1,000 Assessed Value $20 - $18 - $16 - $14 - $12 - $10 - $8 - $6 - $4 - $2 - $0 $1 0.86 $11.02 ca a) Q a) s 0 $12.68 West Des Moines $15.22 Cedar Rapids $15.71 $16.20 $16.78 $16.81 a a a a- c2 � ul Q a - a o U o_ U o x as cz a? N 0 o g Des Moines Council Bluffs N gee) 1e3S! 1 CO V CO CO CO co CO 0 Co a Co N CO w CO Co cn co O W V co O CO CO 0 0 0 a 0 N O w 0 A O 0 o) 0 V O O 0 co a 0 a a a N a CO a r a 0 r N s N a 0 N a N fA a A M a On 58 0 4-4: a) x 73 a) CD aley xel' !OJ $14. $13.95 $11.80 7 .77 0 61 $11.69 $12. $1 $12. $12 $11.78 $11.78 $11.38 11.40 1.07 2 5 .78 1.03 1.03 $11.07 $10.0 $11.72 $ $11.76 $10. -1 $10. -7 $10. $9.70 $9.98 $9.97 $9.86 $10.0 $10. 7$1 $ $ 58 0 4-4: a) x 73 a) CD aley xel' !OJ CITY OF DUBUQUE COSTS OF MUNICIPAL SERVICES INCREASE FOR AVERAGE HOME'S CITY UTILITY AND PROPERTY TAX EXPENSE FY 1989 -2019 FISCAL YEAR FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 WATER 3.00% 3.00% 2.00% 3.00% 0.00% 0.00% 0.00% 3.00% 0.00% 0.00% FY 1999 FY 2000 4.00% 1.00% FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 3.00% 0.00% 2.00% 4.68% 3.00% 4.00% 4.00% 5.00% 9.00% FY 2010 FY 2011 3.00% 4.00% FY 2012 FY 2013 FY 2014 FY 2015 PROJECTION FY 2016 FY 2017 5.00% 15.00% 9.00% 5.00% 5.00% 5.00% FY 2018 FY 2019 5.00% 6.00% AVERAGE ANNUAL PERCENT CHANGE 3.51% THROUGH FY 2015 SEWER 0.00% 3.00% 2.00% 3.00% REFUSE MONTHLY % INCR! 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.00% 1.00% 3.00% 4.00% 5.50% 9.00% 5.00% 9.00% 5.00% 11.00% 15.00% 15.00% 17.00% 5.00% 5.00% 4.00% 4.00% 4.00% RATE $4.00 $4.50 $6.00 $7.00 $9.00 $9.00 $8.50 $7.50 $7.25 $7.00 $7.00 $7.00 $7.44 $7.50 $7.20 $7.60 $8.51 $8.70 $9.46 $9.89 $10.35 $10.60 $11.09 $10.72 $11.69 $12.74 $13.38 $13.73 $14.08 $14.43 $14.78 (DECK) 6.67% 12.50% 33.33% 16.67% STORMWATER MONTHLY RESIDENTIAL PROPERTY FEE % INCR TAX 28.57% 0.00% - 5.56% - 11.76% -3.33% - 3.45% 0.00% 0.00% 6.29% 0.81% -4.00% 5.56% 11.97% 2.23% 8.74% 4.55% 4.65% 2.42% 4.62% - 3.34% 9.05% 8.98% 5.02% 2.62% 2.55% 2.49% 2.43% 5.23% 1.29 1.29 1.79 2.25 3.25 4.00 4.00 5.25 5.60 5.60 5.60 5.98 6.38 6.81 7.27 7.76 0.00% 38.76% 25.70% 44.44% 23.08% 0.00% 31.25% 6.67% 0.00% 0.00% 6.79% 6.69% 6.74% 6.75% 6.74% - 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% 3.68% 3.00% 4.30% 4.00% CHANGE IN CHANGE ANNUAL COST PASSED BY OF MUNICIPAL CITY COUNCIL SERVICES - 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% 0.00% -1.48% 0.00% -3.73% 0.00% 2.76% 0.00% 2.47% 4.88% 5.00% 4.90% $1.51 $6.41 ($12.69) ($5.19) ($6.66) $5.30 $0.51 $9.46 $6.51 ($22.14) $37.64 $24.76 $34.98 $29.24 $48.81 $76.40 $32.68 $85.20 $89.44 $130.65 $124.24 $68.09 $70.56 $64.25 $76.86 $141.88 /3 Keys to Financial Success: Review of Fiscal Years 1989 -2019 • 6 years of no increase in water fee • 10 years of no increase in sewer fee • 6 years of decreases and 3 years of no increase to refuse collection fee • 9 years of decreases and 6 years of no increase to property tax cost to average homeowner $34.78 average annual increase to average homeowner from 1994 -2015 4 FY2015 Recommended Water Rate 5% increase to $23.23 per month Proposed Water Rates (FY 15) $35 $30 $25 u $20 $15 0 2 $10 $5 $0 $30.30 $28.77 $25.64 $26.85 $27.13 $23.18 $23.23 $24.93 r� i Des Moines Dubuque Council BluffsCedar Rapids Average w/o Ames Iowa City West Des Dubuque Moines 75 FY2015 Recommended Sanitary Sewer Rate 5% increase to $27.34 per month Monthly Rate $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Proposed Sewer Rates (FY 15) $17.21 $21.93 $22.40 $30.45 $31.02 $38.79 $27.34 $34.55 $36.00 $36.08 $36.10 Council Cedar Waterloo Average Ames Dubuque Sioux City Davenport Iowa City West Des Des Moines Bluffs Rapids w/o Dubuque Moines 76 A FY2015 Recommended Solid Waste Collection Fee 5% increase to $13.38 per month $25 - $20 - $5 $0 Proposed Solid Waste Collection Rates (FY 15) $14.85 $15.30 $15.90 $12.50 $13.38 $10.55 $11.69 $11.23 West Des Des Moines Davenport Waterloo Dubuque Average w/o Dubuque Moines $18.00 $19.55 $19.63 Sioux City Iowa C ty Council Ames Bluffs Cedar Rapids 77 FY2015 Recommended Stormwater Rate 6.79% increase to $ 5.98 per month for the average single- family home FY2015 Costs to Citizens Average Fee Increases • $1.16 per month for water • $1.60 per month for sanitary sewer • $0.64 per month for refuse collection • $0.38 per month for stormwater Combined average increase in these utilities will be $3.78 per month Dubuque's Rankings among Iowa's 10 Largest Cities ISSUE RANK Property Tax Rate per Capita LOWEST Water Rate 2 "d LOWEST City Property Tax Rate 2 "d LOWEST Refuse Collection Rate 5th LOWEST Sanitary Sewer Rate 5th LOWEST Stormwater Rate 2 ^d HIGHEST Savings to Average Homeowners These savings put almost $14 million back into the local economy annually. 81 Current Annual Dubuque Cost If Equal to the Highest Large Iowa City Property Tax $728 $1,173( +$445) Water Fee $293 $364 ( +$71) Sanitary Sewer Fee $402 $465 ( +$63) Stormwater Fee $72 $124 ( +$52) Refuse Fee $160 $235 ( +$75) Total Annual Cost $1,655 $2,361 ( +$706) These savings put almost $14 million back into the local economy annually. 81 Fiscal Benchmarks Updated in January 2014 to reflect FY2015 Rates Cost of City Services Since 1994, the average homeowner has had an average annual increase of just $34.78 for City services, including property taxes, sanitary sewer, water, refuse, and stormwater fees. 82 Keys to our Financial Success • a continued growth in taxable property valuation (3.64% in Fiscal Year 2015); • efficient operation with a 3.4% (20 full -time equivalent) reduction in the City's workforce since the 1980s; • increased use of grants, mostly federal ($348 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 (leadership and execution); and • caring citizens, significant business investments, committed elected officials, hard - working not - for - profits, and talented city employees. 83 National Civic League Civic Index "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." -- National Civic Review Editor Michael McGrath 84 National Civic League Civic Index The seven capacities we have identified as most important for communities to focus on are: • Participation and civic engagement • Diversity and inclusiveness • Networking, information and communications • Decision making and consensus building • Partnerships and collaboration • Leadership • Community vision and pride 85 Thank you • 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, • Communications Assistant Natalie Riniker 86 SUSTAINABLE DUBUQUE viable y livable • equitable 87