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Fiscal Year 2008 Budget TransmittalTHE CITY OF Dus E MEMORANDUM ~~ January 11, 2007 ' TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2008 Budget Transmittal In his message in the City's Annual Report, Mayor Roy Buol quoted Jim Collins' book, "Good to Great: Why Some Companies Make the Leap...and Others Don't" "No matter how much you have achieved, you will always be merely good relative to what you can become. Greatness is an inherently dynamic process, not an end point. The moment you think of yourself as great, your slide toward mediocrity will have already begun." As we reflect on Calendar Year 2006 and review budget proposals for Fiscal Year 2008 (July 1, 2007 -June 30, 2008), it's clear that Dubuque is at a crucial point in its history. Having recently finished Collins' book on how good companies become sustaining great companies, I see many parallels to Dubuque. While significant progress has been made in the recent past, this community is poised for greatness. We are all entrusted with the task of making this a great place to live, work, learn and play. A headline in the January 2, 2007 edition of the Telegraph Herald reads, "Robust Development in '06 -officials see one of the best economic years in Dubuque's history." The article went on to say, "It was a year marked by such a flurry of business expansions early on that Mayor Roy Buol predicted it would turn out to be the biggest year in economic development since Deere & Co. built its sprawling Dubuque Works plant in the latter 1940's. The statistics might just back up that bold prognostication. /Jobs, jobs, jobs." In a December 2006 article in Julien's Journal, former State of Iowa Department of Economic Development Director and current Greater Dubuque Development Corporation President Mike Blouin says: "Probably no other place in Iowa so successfully demonstrates the impact of partnerships on economic development than the Dubuque area... . ...What Dubuque is doing to transform the economy and build on an already exceptional quality of life really amazes people... . The Honorable Mayor and City Council Members January 11, 2007 Page 2 Dubuque, and in fact Northeast Iowa, seems to have achieved tremendous momentum. The region has demonstrated what can be accomplished when the public and private sectors come together across boundaries to achieve common goals... . Throughout the past year, the Dubuque area set an admirable pace for the Iowa economy, attaining record employment in some months and attracting national attention forjob growth." In a January 7, 2007, Des Moines Register article, former State of Iowa Economist Harvey Siegelman is quoted as saying, "...long-time meat packing cities like Dubuque and Cedar Falls-Waterloo have successfully redefined their economies. You can see a real renaissance." However, among all this good news, I want to offer some words of caution. A July 1965 publication of the Dubuque Golf and Country Club sang the praises of Dubuque, especially the state of the economy. The 1965 publication reads, "For decades Dubuque has prospered as a strategic industrial, wholesale, and retail center dominating a vast tri-state marketland.... while unemployment at 1.5 percent was the lowest percentage ever recorded." As we know, almost 20 years later, Dubuque had the following statistics: • Dubuque averaged 8.9 percent unemployment through the 1980's • Unemployment was over 14 percent in 1983 • In January 1982, unemployment was 23 percent • Dubuque lost 7.8 percent of its population between 1980 and 1990 A 1983 publication of the Dubuque Area Chamber of Commerce reads, "Dubuque's plight is becoming desperate. It suffered more severely during the recent recession, and has for the past three years had the highest unemployment rate of Iowa's SMSA's (largest cities). That unfortunate fact is no surprise to Dubuquers. It has been losing both industry and retail business consistently for the past decade. Dubuque is losing its people. Recent estimates show 10 percent of the housing stock vacant or available for sale." As author Jim Collins wrote in the book Good to Great, "Greatness is not a function of circumstances. Greatness it turns out, is largely a matter of conscious choice, and discipline." The Honorable Mayor and City Council Members January 11, 2007 Page 3 In the December issue of Julien's Journal, Greater Dubuque Development Corporation Executive Director and Chief Operating Officer Rick Dickinson wrote: "In 2003, Greater Dubuque launched the River Valley Initiative. That same year a nationally recognized economic forecasting firm, Economy.com, Inc. had this to say about Dubuque's future. 'With few growth drivers at the present time, Dubuque will be a growth laggard in the near term'- October 2003. Ouch!! That's what could have happened had this community not acted. That's what did happen to so many Midwest communities that did not take heed. Since 2005, the Dubuque area's job growth rate has been among the best in the entire United States. That's right, Dubuque ranks 22"d out of 387 cities in America. Right between Austin, Texas and Orlando, Florida. No other Iowa city is in the Top 100. No other Midwest city is in the Top 25. Dubuque County has just three percent of Iowa's total population. However, this year, our area was responsible for creating 8.1 percent of all private sector jobs in the entire state. Moreover, for the last three years, Dubuque ranks #1 in the State of Iowa with a job growth rate of 7.4 percent. That means the average monthly employment level in Dubuque County for 2006 will be a record 56,100. Wow! .. . Despite our recent success, what does Economy.com, Inc say more recently about Dubuque's outlook in the coming years if we do not act? Here it is: 'Dubuque's economy will slow over the next few quarters, as demand for the area's main goods and services wanes due to the weakening demand in the broader macroeconomy. Over the midterm, Dubuque will only slightly underperform the national average. Longer-term, Dubuque's highly cyclical economy, low industrial diversity, and weaker than average population trends will make the economy an underpen`ormer. The area's living and business costs, while low, are average for the Midwest and therefore, they will not be much of a draw'- October 2006. We cannot allow this prediction to become a reality. We can and will act." Creating a vision with corresponding goals and clear priorities and then carrying those out in partnership with others is the basis of Dubuque's success today and into the future. The Mayor and City Council are the key to this being The Honorable Mayor and City Council Members January 11, 2007 Page 4 accomplished. In Good to Great, Collins says, "In the social sectors the question is not how much money do we make per dollar of invested capital, but how effectively do we deliver on our mission and make a distinctive impact, relative to our resources." The Mayor and City Council decide on priorities and policies, determining how the time, talent and financial resources of the City will be allocated. As I worked with City staff to prepare a recommended budget for the City Council's consideration, we were guided by the priorities identified by the City Council. These priorities were developed in August at the City Council's annual goal-setting session at the Grand River Center. During the two-day event, Council members developed a 2020 vision statement, five-year goals, a 2006-2008 policy agenda, along with a management agenda. The City Council approved the Dubuque 2020 Vision Statement to include: • The city of Dubuque is a progressive, sustainable city with a strong, balanced economy and connections to the world. d• The Dubuque community takes pride in its history and heritage and has actively preserved its picturesque river and community. • Dubuque citizens have choices of quality, livable neighborhoods and fun things to do and are engaged in the community. • Dubuque city government is financially sound and provides services with citizens getting value for their tax dollars. The City Council established the following Five-Year Goals: • Improved Connectivity: Transportation and Communications :• Diverse, Strong Dubuque Economy • Planned and Managed Growth • Partnering for a Better Dubuque • RiverFront Development The City Council also adopted a 2006-2008 Policy Agenda and developed priority issues: The Honorable Mayor and City Council Members January 11, 2007 Page 5 CONTINUING PRIORITIES • Southwest Arterial The Dubuque City Council, the Dubuque County Board of Supervisors, the Dubuque Area Chamber of Commerce, and Dubuque Metropolitan Area Transportation Study group (DMATS) has identified the completion of the Iowa Highway 32 (Southwest Arterial) project as the No. 1 surface transportation priority in the Dubuque area. The Iowa Department of Transportation has not included funding for the Iowa Highway 32 (Southwest Arterial) project in their Five-Year Transportation Plan. The engineering consultant, Earth Tech, is continuing work on the preliminary engineering design phase. • Unified Development Code / Bluffland Ordinance The City's planning staff is working to develop a Unified Development Code (UDC), which will combine zoning, subdivision, sign, and historic preservation regulations into a single City Code. The intent is to provide auser-friendly ordinance format that implements the goals and objectives of the Comprehensive Plan, recognizes the diverse physical characteristics of Dubuque's neighborhoods, and encourages planned and managed growth. The City would like to combine zoning, subdivision, sign, and historic preservation regulations in a UDC to meet this goal. As principal tools for implementing the Comprehensive Plan, the Dubuque City Council has determined that the Zoning Ordinance and the Subdivision Ordinance need to be rewritten as a UDC. The UDC will also include a BlufFland Ordinance to regulate bluffland development. • Annexation Study In December, the City Council received the results of an Annexation Study. The purpose of this annexation analysis was to assist the City in evaluating growth issues. The objectives of the study were: to determine the costs and benefits associated with the proposed growth and growth areas, to evaluate the cost and benefit of the proposed growth areas in relation to each other, to identify potential advantages and weaknesses within areas, and to prioritize the potential growth areas. Funding is recommended in this budget to begin implementation of the Annexation Study. • Bee Branch Project /Drainage Basin Master Plan Projects The City is implementing a $39 million Stormwater Management Plan, which consists of three projects -two detention basins and smile-long open waterway, known as the Bee Branch Project. It is the reconstruction and restoration of over 4,500 feet of buried creek. It will re-introduce the confined Bee Branch Creek to the North End Neighborhood. Once it is complete, over 1,150 homes will benefit from flood protection that meets today's design standards for Stormwater management. This budget not only recommends funding for this project, but an acceleration of the construction schedule without an increase in fees because of innovative low-interest financing. The Honorable Mayor and City Council Members January 11, 2007 Page 6 TOP PRIORITY • Street Program: Continuation and Funding: The City's annual street program includes the asphalt overlay program conducted by City crews (10 miles of city streets per year) as well as the street reconstruction program. This budget recommends replacement of the Public Works asphalt overlay equipment. • Workforce Development Strategy: The City will work with various agencies, including the Dubuque Area Chamber of Commerce and Greater Dubuque Development Corporation, to ensure Dubuque's current and future employers have access to an adequate workforce to continue community growth and prosperity. This budget includes a 36 percent increase in the amount of funds going to the Dubuque Area Chamber of Commerce for this effort, from $4,425 to $6,000. • Green City Designation: City staff are currently exploring the environmental practices and policies required for Dubuque to be designated a "Green Community." Three initiatives in this area are recommended for funding: one for a general plan, one related to stormwater and one for targeted neighborhoods. • Americans with Disabilities Act (ADA) Compliance: The City Council has asked City staff to develop a plan to enforce ADA regulations to increase compliance within the city. A major education initiative through the Human Rights Department and a new position in the Building Department would make an impact here. • Library Renovation: The Carnegie-Stout Public Library is undertaking a $5.3 million renovation and is seeking support from the City and donors. This recommendation includes a 50 percent match for a fundraising campaign and hundreds of thousands of dollars in additional funding to provide for a green design and a roof garden for environmental and stormwater reasons. HIGH PRIORITY • Airport Master Plan: In 2003, the Dubuque Regional Airport Commission completed an Airport Master Plan study which has been accepted by the FAA. It calls for the construction of a new terminal. Land acquisition has begun and preliminary design will begin soon. Another initiative currently underway is expanded air service in the form of a second carrier or the addition of new routes and hubs through our current airline. These negotiations are ongoing. The Honorable Mayor and City Council Members January 11, 2007 Page 7 Millions of dollars are recommended to move towards construction of the new terminal. • East -West Corridor Connectivity Study: A study of the east-west traffic flow will be conducted to identify corridor improvements or modifications needed to support growing traffic demands. Capacity along alternate east-west corridors may be needed to improve connectivity between the western growth areas and downtown. Key streets include Fremont Avenue, Pennsylvania Avenue, and Asbury Road. • Rail Spur -Dubuque Industrial Center West (DICW): The addition of a railway spur is being implemented as an important asset to attract additional tenants to the DICW. • Water Pollution Control Plant Facility Plan: Funds are recommended to develop a plan to assess the current condition of the plant and determine the proper direction for future treatment goals. Millions of new dollars are recommended for implementation of this plan. The 2006-2008 Management Agenda was also established by the City Council in August. These issues represent short-term projects for the City Manager and City of Dubuque staff. Included in the Management Agenda are items that are considered major projects that involve significant City resources and may span more than one year for completion: TOP PRIORITY • Community Health Center -The Crescent Community Health Center is open. • Pandemic Influenza Plan -Moving ahead well in partnership with the business community. • Grand River Center Maintenance -Several items are addressed through this budget. • Fire Department Mobile Data Terminals (MDT) /Wireless Networks -Federal grant was received. • Police Department Territorial Accountability Design -Implemented. HIGH PRIORITY • Dubuque Technology Park -Several private projects are being implemented. • Port of Dubuque Development -With the Brewery, McGraw-Hill, Diamond Jo, the next phase of the Mississippi River Museum and Aquarium, Durrant Architects, Briggs' Development and a new parking ramp, $225 million of development is occurring. • Intermodal Transportation Facility -Federal funding is still being sought. • Utility Infrastructure Update -Major improvements in the City's water and sewer utility infrastructure will be built through this budget. The Honorable Mayor and City Council Members January 11, 2007 Page 8 Mediacom Franchise Implementation -The I-Net is mostly complete and the franchise is going well. MAJOR PROJECTS • Pedestrian Wayfinding Signs -Will be installed this spring. • Federal Building Project - Phase I will be completed by September 2007. • Shot Tower Renovation -Under design. • Regional Public Safety Responder Training Center -Open and operational. • Westbrook Park -This project will soon be underway. • Welu Park -Budgeted in Fiscal Year 2008. • Eagle Valley Park -Budgeted in Fiscal Year 2009. • Riley Park -Completed. • Town Clock Renovation -Under design. • Highway 20 Landscaping -Implementation continues. • Ice Harbor Boat Dock -Will be completed by summer 2007. The Budget For the 13~h consecutive year I am able to recommend no property tax increase for the average homeowner. In fact, in six of those years the average homeowner saw a property tax decrease. Over the last 13 years, the average homeowner has averaged annually a 0.62 percent decrease in the City portion of their property taxes. This year is better than many others in that the City will have the financial resources to further many initiatives, while funding almost every one of the non-recurring decision packages and most of the recurring decision packages. I am especially pleased that, after the City helped get the Crescent Community Health Center open in 2006, the City will be able to substantially boost the City's investment in the Washington Neighborhood to increase home ownership with an increase in funding over six years from $700,000 to $1.3 million. Also, on the edge of that neighborhood, the City will facilitate the creation of a major shopping center at the former Dubuque Pack site. The City will continue the overall commitment to neighborhoods community-wide by continuing the emphasis on the street program, including replacing the asphalt paver used by City crews to put an asphalt overlay on over 10 miles of streets per year. Also, the City will continue to create new parks (like Orange Park, built this year in the Washington Neighborhood) and remodel existing parks. After-school programs are recommended for two more schools, Marshall School and Lincoln School. Finally, assistance to the Washington Neighborhood will be provided in the area of energy efficiency and a process to develop a comprehensive neighborhood plan will be initiated. The former Federal Building will be restored. The Honorable Mayor and City Council Members January 11, 2007 Page 9 Fifty percent of the funding to renovate the Carnegie-Stout Public Library is budgeted. Several departments are recommended for additional staff, or an increase in staff hours, including the Police Department, the Information Services Department, the City Manager's Office, the Building Department, Carnegie-Stout Public Library, Geographic Information Systems, Parking Division, Leisure Services Department, Public Works, and through a Purchase of Services, Dubuque Main Street, Ltd. The additional Police Officer position would be the 18t" Police Officer position added to the Police Department since 1994. Acquisition of a site for a future west-end Fire Station is recommended. An initiative to provide seed money for the celebration of the 175`h birthday of the City of Dubuque is provided. Creation of a BMX Bike Park is recommended, along with improvements to the existing Skate Park and creation of a new Skate Park in Fiscal Year 2010. Helping to define the City's Green City Initiative is included, along with stormwater- related "green" planning and energy efficiencies in targeted neighborhoods. Sutton Pool will see a new, more exciting water slide in Fiscal Year 2012. Renovation of Bunker Hill Golf Course will be slightly delayed, but is included at a cost of $1.5 million. Implementation of the Airport Master Plan, including initiation of the construction of a new terminal, is included for over $23 million. Millions of dollars are included to upgrade both the City's water and sanitary sewer infrastructure, including development and implementation of a plan for the Water Pollution Control Plant for $13,250,000. Implementation of the Bee Branch Creek Restoration Project is included for $22,009,771 for these phases. This involves accelerating the project schedule, without increasing the Fiscal Year 2007 adopted fee schedule, because of the State of Iowa's low-interest revolving loan fund. The City continues its commitment to provide services to recently-annexed areas, and also budgets millions of dollars to implement the recently-completed Annexation Study. The Honorable Mayor and City Council Members January 11, 2007 Page 10 Final design of the Southwest Arterial-IA 32 will begin, along with land acquisition if the City can successfully negotiate a loan with the Iowa Department of Transportation to provide a match to the Federal earmarks that exist. The City will initiate the process of building a 750-car parking ramp in the Port of Dubuque to accommodate the expansion of the Mississippi River Museum and Aquarium, Diamond Jo Casino, and the construction of McGraw-Hill and the Briggs/Durrant development. This parking facility will also create opportunities for future development in the Port of Dubuque. If federal assistance is forthcoming, an intermodal transit facility which includes parking, will also be built. The routine replacement of solid waste collection vehicles will continue with a twist. One of the units purchased will be a hybrid vehicle to determine the feasibility of using these vehicles in Dubuque from both an operational and economic viewpoint. Funds are provided for Management Team members to attend the Iowa League of Cities annual conference in Dubuque in 2007 and $20,000 is budgeted so the City can fulfill its role as host community. The City would also survey the citizens of Dubuque in early 2008 to measure the level of satisfaction with City services. A position is being added to the Building Services Department to enforce the City's demolition by neglect ordinance in Historic Districts and Conservation Districts and to enforce the American's with Disabilities Act is readily achievable improvements. Additional efforts related to ADA include publishing a booklet called, "Proudly Accessible Dubuque," using a firm to create a comprehensive outreach program to improve compliance with the ADA, and holding an ADA training session to be presented by the Disability Business Technical Business Center. Funds are being provided to manage shared resources associated with the newly- constructed Institutional Network (I-Net) which was done as part of the Mediacom franchise. Fiscal Benchmarks It is important that the City be operated in a fiscally responsible manner. Services, of course, must be effective, but the City has an obligation to the taxpayers to also operate efficiently. One important way to determine this is to see how the City of Dubuque compares with other large cities in the State of Iowa who operate under the same State rules. The Fiscal Year 2008 numbers for other communities are not yet out, but here is how the City compared in Fiscal Year 2007 and the recommended Fiscal Year 2008 City of Dubuque rates. The Honorable Mayor and City Council Members January 11, 2007 Page 11 Bond Ratings for Iowa's Largest Cities Rank City Rating 1 Ames Aaa 1 Cedar Rapids Aaa 1 Iowa City Aaa 2 West Des Moines Aa1 3 Davenport Aa2 3 Des Moines Aa2 3 Sioux City Aa2 4 Council Bluffs Al 4 Waterloo Al Fiscal Year 2007 City Property Tax Rate Comparison $20 00 $ta.oo $1s.oo d N y $14.00 a N N d $12.00 a c 'm $10.00 0 L ~ $9.00 `a a v ~ $0.00 x N F $4.00 $2.90 $0.00 Iowa's 10 Largest Cities Dubuque's Fiscal Year 2008 recommended property rate is $10.3169, which will be higher than Ames, if they do not raise their rate. However, I anticipate they will raise their rate. Waterloo Council Sioux City Iowa City Des Moines Davenport Cedar West Des Ames Dubuque Bluffs Rapids Moines The Honorable Mayor and City Council Members January 11, 2007 Page 12 For Fiscal Year 2007, Dubuque is the lowest in the state for property tax rate. The highest-rank city (Waterloo - $18.85) is 89 percent higher than Dubuque's rate, and the average ($15.69) is 57 percent higher than Dubuque. The Fiscal Year 1987 Property Tax Rate was $14.58. The Fiscal Year 2008 Property Tax Rate recommendation is $10.3169. The Fiscal Year 1987 Tax Rate was 41 percent higher than the Fiscal Year 2008 Tax Rate. Dubuque has the second-lowest percentage of legal debt margin utilized. The highest- ranked city (Des Moines) is 14 percent higher than Dubuque and the average is 65 percent higher than Dubuque. Dubuque has the lowest property taxes per capita in the State. The highest-ranked city (West Des Moines - $736) is 147 percent higher than Dubuque's rate ($298), and the average ($532) is 79 percent higher than Dubuque. According to an American Waterworks Association Research Foundation study, the typical homeowner nationally pays $476 annually for their water and waste water bill. This compares with the cost to an average homeowner in Dubuque of $381. The national average is 25 percent higher than Dubuque's rate. A 16 ounce bottle of water costs $1.29. You could buy 750 gallons of Dubuque water at that price. In 2008, the average homeowner will pay $137.25 more for City services, including property taxes, sanitary sewer, water, refuse and stormwater, than in 1995 - an average increase ofjust $10.56 per year. Dubuque's Fiscal Year 2007 Rankings among the Ten Largest Cities in Iowa ISSUE RANK Property Tax Rate #1 of 10 Water Rate #2 of 7 Sanitary Sewer Rate #2 of 10 Solid Waste Rate #1 of 10 stormwater Rate #8 of 18 The Honorable Mayor and City Council Members January 11, 2007 Page 13 Savings to Average Homeowners Current Annual Dubuque Cost Property Tax $486 Water Fee $173 Sanitary Sewer Fee $189 Stormwater Fee $27 Refuse Fee $114 Total Annual Cost $989 If Equal to the Highest Large Iowa City $918(+$432) $346(+$173) $382(+$193) $73(+$46) $252(+$138) $1,971 (+$982) In comparison to the highest property tax rate and service fees of the large cities in Iowa, the City of Dubuque puts almost $29 million back into the local economy annually. Keys to our Financial Success • 6 percent Annual Growth in Assessed Valuation • Efficient Operation - 13 percent reduction (76.25 FT employees) in City workforce since 1980s • Increased use of Federal/State Grants • Diversified Revenue Streams (Local Option Sales Tax, Stormwater Fee, Gaming, Hotel/Motel Tax, Lease Revenues, and Utility Franchise Fee) • Property Tax Supported Debt Reduced • Increased Public/Private Partnerships • Entrepreneurial City Council Policy Decisions • Caring Citizens, Committed Elected Officials, Hard-Working Not-for-Profits, and Talented City Employees -- "Great Vision without Great People is irrelevant." Good to Great by Jim Collins Areas of Concern You may recall, in the Fiscal Year 2007 budget message related to Transit, I wrote, "The largest operating budget financial issue in this budget deals with the huge increase in costs of $438,841 related to Transit. I am recommending a combination of service modifications, a fare increase and an increase in the property tax subsidy from $710,543 in Fiscal Year 2006 to $923,384 in Fiscal Year 2007, an increase of $212,841." The City has contracted with a private management firm, First Transit (Jon Rodocker is our local manager), so I am hoping for a brighter future for Transit. However, the Fiscal Year 2008 picture for Transit is still not very rosy. Fiscal Year 2008 will see a 15.9 percent increase in the property tax subsidy rising by $146,669 to $1,070,053. The Honorable Mayor and City Council Members January 11, 2007 Page 14 The City will also face a negative impact on future revenues with the expansion of the Diamond Jo Casino. The City receives a significant amount of revenues from the City- owned Dubuque Greyhound Park and Casino. At the annual City Manager's budget public input session, Sister Inez Turnmeyer of St. Mark's Community Center spoke about the need for public funding for academic-based after-school programs. The City currently has after-school recreation programs at targeted schools, including Prescott and Audubon. Also, in this year's budget, it is recommended to expand these programs to Marshall School and Lincoln School. While I do not disagree with Sister Inez on this point, the City does not have the resources to provide the additional funding. A partnership could be explored with the Dubuque Community School District; however, I imagine they have already been approached. The issue of workforce looms large on the City's horizon. A perfect storm is brewing on this issue with the impending retirement of baby boomers, the lack of growth in the City's population, and the tremendous amount of job growth locally. "Federal statistics suggest that in just a few years there will be 151 million jobs, but only 141 million people to fill them." "An estimated 76 million baby boomers will soon be retiring, however only 48 million workers under the age of 40 will be waiting to replace them." Lewis, Diane E. January 11, 2004, The Boston Globe; and Battenberg III, J.T. February 16, 2004, Crain's Detroit Business. "...Dubuque is still attracting residents at a faster than average pace for the state ...however, Dubuque's highly cyclical economy and weaker than average population trends [compared to the nationwide average] will make the economy an underperformer over the long-term forecast horizon." Economy.com, June 2006 The U.S. Census Bureau projects that the population of the State of Iowa will only increase 1 percent between the year 2006 and the year 2030. Only two states, West Virginia and North Dakota, are projected to have a slower rate of growth. Claritas, a private corporation that analyzes population trends, projects that the Dubuque area laborshed population will only increase by 3,514 people by 2011. The average age is projected to increase from 37.8 in 2000 to 40.1 in 2011. The rate of job growth in Dubuque is not sustainable with that low level of population growth. The Honorable Mayor and City Council Members January 11, 2007 Page 15 Away needs to be determined to connect employers with people who have formerly lived in Dubuque, growing up or going to school, and those people who are now in Dubuque, whether here for college or having grown up here. While this may seem counter-intuitive, the main way to keep the people we have in Dubuque, our children and grandchildren, and attract new residents to our area, is to create opportunity. Quality of life is important and thankfully we have that now and are continuing to improve on it, but people need jobs too. The recent surge in employment in our area was 80 percent local companies and 20 percent from new companies. While the efforts need to continue to focus on growth of local companies, we were selected as 2"d best nationally at retaining existing business, more resources will need to be dedicated to business recruitment to maintain the 20 percent job creation from new businesses or to actually improve on that level. In last year's budget message, I expressed concern about the possibility of losing some of the City's Utility Franchise Fee ($1,481,525). However, it appears the Springsted Consulting Study final report will justify the current 2 percent fee and more. Conclusion For Dubuque to continue its progression from "Good to Great," we cannot become complacent with our recent growth and successes. We must maintain our momentum and continue to innovatively address the challenges we face. I know the Mayor and City Council are prepared for doing this in partnership with the many caring organizations and individuals in this community. This was a complex and challenging budget and it required the assistance of many City of Dubuque staff members. I am especially proud of the work that was done this year, including input from Department Managers and City Commissioners. I would like to thank Budget Directors Dawn Lang and Jennifer Larson, Financial Analyst Rick Till, along with Office Manager Juanita Hilkin and Secretary Kevin Firnstahl, for putting together the budget, with the assistance of Assistant City Manager Cindy Steinhauser. City Attorney Barry Lindahl and City Clerk Jeanne Schneider continue to provide their expertise and assistance throughout the budget process. I respectfully submit this budget for consideration and deliberation. While I know that all needs and requests were not met, I believe the budget as presented keeps the community moving forward in a fiscally responsible manner. Michael C. Van Milligen MCVM:jh Attachments CITY OF DUBUQUE FISCAL YEAR 2008 RECOMMENDED BUDGET FACT SHEET Total Budget $ 116,812,767 7.27% more than FY 2007 Operating Budget $ 79,008,865 4.39% more than FY 2007 Capital Budget $ 37,803,902 13.82% more than FY 2007 City Tax Asking $ 18,178,383 5.81 % more than FY 2007 City Tax Rate $10.3169 per $1,000 3.37% more than FY 2007 Taxable Valuation $1,762,000,629 2.36% more than FY 2007 TIF Increment Valuation $134,777,658 -2.39% less than FY 2007 Tax Rate Change $+.3366 Imaact on Prouertv Owners (City Taxes Only) Residential = 0.00% Commercial = +4.26% Industrial = +3.37% Recommended Fee Adjustments Sewer 5% rate increase effective July 1, 2007 Water 5% rate increase effective July 1, 2007 Stormwater Stormwater monthly utility rate increases to $3.25 from $2.25 per month per Standard Family Unit (SFU) equivalent effective July 1, 2007 Refuse Monthly rate from $9.46 to $9.91 effective July 1, 2007 Parking Establishes a policy to charge other City departments or private contractors the standard non-profit/long term project rate of $2.50 per day on City projects for parking meters that are blocked off during street repairs, sidewalk repairs, tree removal, and other City projects. Recreation Golf fee increases in the Golf Maintenance activity are: Weekend 9 hole, senior citizen and weekday 9 hole (+.25); League rate (+$.50); Individual passes (+$10.00); Couples and family passes (+$15.00); Junior passes (+$5.00). Adult Athletics activity fee increases are: +$10 per team for basketball, and softball; $5 per team for winter volleyball; and +$3 for adult tennis lessons. Therapeutic Recreation activity fee increases are: Sports activities, dances, and unified sports from $2 and $3 to a unified fee of $5. Community Development Target Area activity fee increases are: +$30 for day camp participants not meeting the income guideline. Swimming activity new fees are: +$8 for the replacement of lost swim pass tags. Positions Full-Time Equivalent Chs~s. Full-Time Equivalent All Funds -1.47 630.04` * Included Full Time employees (512.00), Part Time employees (68.40), and Seasonal (49.64) a m ie o ~ m a v m m v m m p m N F J N O m m m N Y N m n m N N N Il] m O m N N m N O m m N n V p Q N O O n = O a y M Vf m~ y W M 19 19 N m N CJ N m yp N p N ~ W W W y W H Vl W W K W O (j W 2Q T'> = 2 ~ W U Q LLO y o e 2° o e e e e 2° e e o 0 2° ~ ~ 0 0 2° 2° d° e o J O m n m W O th n N O n O O O O O O N O O m O n O Q} V m n m m Y m Y n O O O O N Q m m O O n N V N F F O m m N O N O O O O O O O N ~ O r O N Y m Y O Z W X ' oar 0 ~a J~~W N N n N N O N N O H~ F W ~- r ~ N Oi Q O Q ~() O W = F Q LL ~ y 3 O V a o a e ;e e a e e o a a e e e e e e e e o m N m 0 N O N n P'1 P O O N m O ~ Q N n r m fp W 0 O ~ C ~ m N ~ 0 N O N NI ~ O O f0 O v N N m Y t'M O ~- O N ~ N U t W `o c O o N N a to `O o - LL 4~ H W °~ ~ u a j d ~ n pmj LL R ~ V W p ~ o LL ~ W O N O O O O N N N O O O Y N N N m N ~ Y m N m P N m W Q ~ ~ ~ ~ a of m n n n n n n n ac r 1~ m m of of o 0 0 0 w m w w w w w w w w w w m w y w w w ~ o y 6' w w H W in d W J N ~ x ~ 9 ~ w z od ~ g ~ d u ~ rn~ ~ e ~ o ~ e o ~ ~ e e e e e ~ o o e e e e e ~ o 0 o q d Q y o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ ~~ a o 0 0 0 0 0 0 0 0 0 0 o O o 0 0 o N o o O o 0 0 ~ Q ~ O CJ N Cl O O O O O O O O C V ~ Cj O N Q N (p fj N Yl N ~ 0 a 3 ~&~ cWfa y E°n ) v KF x mtD W J ~ o e e ~ e e e a e e ~ 2° 0 3° e e e e `~ d w y f o 0 0 0 o O O O o o O o 0 0 o m O O o 0 0 0 0 0 o V o J 7 O O O o 0 0 0 o O O O O O O O m O O O O O O O O n ~ h C Qa T ~ M m N m OO G O l7 O O O r CJ O N V C! Y R ~ N N N YI N UU F ~ n> Zy Q m m.3LL JW ~. Z>, c~c ~ ~ O ~ E E O w~ m W -wj ~ VO t y U' O c $ U~ w d c o W~ Q JW ZD.E~ ~ Q m O ~ N m < N m n m m O ~ N ~ m V N m n m m O r N Q~ W Q y m w m m m m rn m m m o 0 0 0 0 0 0 m 0 0 ~ Z O m m> ~ m m m w m m m m m m m o 0 0 10 0 0 0 0 0 0 0 0 0 0$ Q K c c (Q 0 ~ N N N T N N N N N 'j N N N N N$ T Q O O O LL Q Y > Y Y Y Y ) > > > Y > > Y ~ Y Y > Y > O> Y Y > > Q U U' ~~~ 0 W W LL LL LL LL LL LL li LL LL LL LL LL LL LL ...LL LL LL LL LL F LL LL LL LL LL W H W~ Ny LL Q J O f.l QU' Z i n n )O) W Q o ~ ~[ U W d d m F U N > K ~ W O~~~ U ~ Y. LL R Q1 T. ~N City of Dubuque Awards & Recognition Name Institution Recognition Year Iowa Great Place Iowa Department Iowa Great Places have: a 2006 of Cultural Affairs unique sense of place; engaging experiences; a rich, diverse social fabric; a vital, creative economy; a pleasing environment; a strong foundation; and a creative culture. Outstanding Curbside Collection Iowa Society of In recognition of Dubuque's 2006 Program Award Solid Waste comprehensive and efficient Operations program of waste collection services. Distinguished Budget Government According to the GFOA, it 2006 Presentation Award Finance Officers reflects the commitment of the Association of the City and City staff to meeting the United States and highest principles of government Canada bud etin . Urban Pioneer Award National Trust for Recognition of Dubuque's 20- 2006 Historic year commitment to the Preservation revitalization of the cit 's center. Audrev Nelson Community National Recognizes exemplary uses of 2006 Development Achievement Community Community Development Block Award Development Grant (CDBG) funds which best Association address the needs of low- income families and (Presented to Dubuque's neighborhoods. Housing Education and Rehabilitation Training (HEART) Partnership, of which the City is a member. Phoenix Award (EPA Region 7 The Phoenix Recognition for Excellence in 2005 Winner Awards Institute Brownfield Redevelo ment Best Development Award 1,000 Friends of Best Development Award for 2005 Iowa America's River Pro~ect 10 Great Places to Discover USA Today One of "10 Great Places to 2005 Midwest Charm Discover Midwest Charm" Employer of the Year Dubuque Employer of the Year for support 2005 American Legion of City employees activated and Post 6 deployed in Guard and Reserve Units. Dozen Distinctive Destinations National Trust for One of America's Dozen 2005 Historic Distinctive Destinations 2005 -- Preservation Annual List Promotes Heritage Tourism Preserve America Mrs. Laura Bush Historic preservation 2004 and the Federal Government City of Dubuque Awards & Recognition Name Institution Recognition Year Achievement in Economic International Americas River 2004 Development Downtown Association All-Star Community Award Iowa League of Americas River Project 2004 Cities Main Street Award Main Street Iowa Best New 2004 Development/Construction Addy Award Advertising Club Grand River Center Logo 2003 of Dubuque Airport Safety Enhancement US Department Outstanding compliance with 2006 Award of Transportation Title 14 CFR Part 139 for three- 2003 FAA Central year period. 2000 Region 1997 1994 Americas Crown Communities American City & Crown Community 2003 County Best Total Building Dubuque Main Five Flags Theater 2003 Rehabilitation Street Ltd. Environmental Certificate Participation in shredding and 2003 recycling program resulted in saving 23 trees from destruction Excellence in Communication Dubuque Area Interest-Based Bargaining 2003 Labor- Committee Management Council Excellence in Concrete Iowa Ready- Mississippi River Walk Phase II 2003 Mixed Concrete Association Family Self Sufficiency Program US HUD/Region Implementation of FSS Program 2003 Success 7 Kansas City Resulting in High Enrollment Office of Public Housing Honorable Mention Partnership International Americas River Partnership 2003 Award Economic Development Council City of Dubuque Awards & Recognition Name Institution Recognition Year Housing Choice Voucher Home US HUD/Region Outstanding efforts in the 2003 Ownership Program Success 7 Kansas City implementation of home Office of Public ownership Housing Ken Kringle Historic Historic Five Flags Theatre - Excellence 2003 Preservation Award Preservation in rehabilitating an historic Commission structure Public Library Accreditation State Library of Standards of Accreditation 2003 Iowa Tree City USA National Arbor The City has received this 2003 Day Foundation award annually since 1989 CAEFR Report Government Certificate of Achievement for Finance Officers Excellence in Financial Association Reporting The City has received this award for 15 consecutive years. Iowa APA Port of Dubuque Master Plan 2002 Superior Levee Maintenance Corps of City of Dubuque Flood 2002 Award Engineers - US Protection Program Army Outstanding Beautification Dubuque Main Flat Iron Park 2001- Project (Landscaping) St. 17~ 2002 Anniversary Award Innovative Approach to US DOT Federal Innovative Approach to 2001 Addressing Public Transit Addressing Public Transportation Services Administration Transportation Services Region VII Presidents Service Award Iowa Chapter of Janet Walker for outstanding 2001 the NAHRO effort and achievement in the promotion and success of Iowa NAHRO Airport Safety Enhancement US Department Outstanding compliance with 2000 Award of Transportation Title 14 CFR Part 139 FAA Central Region City of Dubuque Awards 8~ Recognition Name Institution Recognition Year Best Public Education Iowa Recycling Iowa Recycling Award 2000 Campaign Agencies/DNR Certification of Investment Municipal The investment policy submitted 2000 Policy Treasurers for review meets the standards. Association of the First City in Iowa to receive the U.S. and Canada. award 1/18/95. Excellence in Communication Dubuque Area Solid Waste Disposal Team 2000 Labor- Management Council National Award of Merit in National Affirmative Customer Services 2000 Administrative Innovation Association of Housing and Redevelopment Officials Public Policy Change Process US HUD Local Best Practice Winner 2000 Special Recognition in Waste Governors Iowa City of Dubuque Recycling 2000 Management Environmental Program Excellence Award Handshake Award of Central 1999- Appreciation Alternative High 2000 School FTA Region 7 Y2K Compliance US DOT Federal Second City to Reach Y2K 1999 Award Transit Compliance Requirements Administration National Significance and Iowa Chapter Eagle Point Park 1999 Contribution to the Quality of American Society Live in Iowa of Landscape Architects Prism Award Iowa Committee Efforts to promote diversity in 1999 on Diversity the community Excellence in Trust Dubuque Area Health Care Committee 1998 Labor- Management Council All-Star Community Award Iowa League Dispute Resolution Center 1997 Cities City of Dubuque Awards & Recognition Name Institution Recognition Year Excellence in Programming Iowa Park and Therapeutic Recreation 1997 Recreation Programs Association International Water Tasting & Winter Festival Of 15 Place Toast to the Tap 1997 Competition Waters Excellence in Health Care Dubuque Area Health Care Committee 1996 Labor- Management Council School Business Partnership Prescott Early Working together to nurture 1996 Childhood Center each other's growth. Fair Housing Assistance U.S Dept. of HUD Outstanding performance in the 1995 fair housing assistance program All-Star Community Award Iowa League of Developers Roundtable 1994 Cities (Iowa League of Municipalities) All-Star Community Award Iowa League of Prescription Drug Program 1994 Cities (Iowa League of Municipalities) Excellence in Collaboration Dubuque Area Health Insurance Task Force 1994 Labor- Management Council Community Water Fluoridation Centers for For contributions made on N/A Disease Control behalf of community water and Prevention fluoridation.