Budget 2003 Presentation MgrMEMORANDUM
January 14, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Fiscal Year 2003 Budget Transmittal
In last year's budget message I was able to report to you that, "The City of Dubuque is
about to embark on the City's most ambitious effort ever to enhance our quality of life
and to invest in our future." This year we will continue to implement that effort by
following the Vision, Goals and Priorities established by the Mayor and City Council.
Our Vision for the Community
As a "hometown for our families" Dubuque is a place...
· where we can raise a healthy family
· where all generations of families can live and play together
· where there are abundant job opportunities that support family wages
· where families can visit and be the guests of our community
City Council Goals
In five years the Council wants the following for the community:
· Improved Transportation Network
· Strong Local Economy
· A "Balanced" Community
· Safe Community
· Riverfront Development
· Top Quality City Services
Current City Council Priorities
Top Priority:
High-Speed Telecommunication Strategy
Stormwater Management: Policy and Funding
America's River Project and Development
Higher Priority:
Highway 20: Short-Term Actions, Long-Term Projects
Street Program: Funding
Owner-Occupied Affordable Housing and Residential Development Strategy
Federal Strategy
High Priority:
Incentives for Business Attraction and Expansion
Northwest Arterial Access Policy
Downtown Master Plan: Review and Implementation
Implementation of these comes on the heels of many other prior accomplishments,
including:
· Receipt of a $40 million Vision Iowa grant to build the $188 million America's
River project, in partnership with the Dubuque County Historical Society, the
Dubuque Area Chamber of Commerce, Platinum Hospitality Group, Inc. and
Dubuque County, to include:
· Mississippi River Aquarium and Museum;
· Riverfront Hotel and Indoor Water Park;
· Mississippi River National Education and Conference Center;
· Mississippi Riverwalk; and
· Heritage Bike/Hike Trail Extension;
· Town Clock Plaza removal and street reconstruction bid award;
· The investment of over $200 million between 1999 and 2004 by the State of
Iowa, State of Wisconsin and the State of Illinois to 4-lane roads, including
4-1aning Highway 151 to Cedar Rapids (1-380) and Madison (190-94), Highway 20
to north of Ames (I-35), improvements to Highway 20 to Chicago and the 1999
4-1aning of Highway 61 to Davenport (I-80);
· The creation of a 20 year supply of City-owned land encompassing 900 acres in
five industrial parks in an effort to create over 10,000 jobs;
· The opening up of thousands of acres for development with water and sewer
extensions;
· Seven million dollars being invested to renovate existing City parks and the
creation of 13 new parks consisting of 60 acres;
· The investment of over $40 million in City streets since 1995, with over 35% of
the streets being reconstructed or resurfaced;
· Fifteen police officers being added and Community-Oriented Policing
implemented, to maintain Dubuque as one of the safest places to live;
Millions of dollars invested to modernize Fire Department equipment and improve
the public safety radio communications county-wide;
A commitment of $25 million in Airport improvements and the arrival of regional
jets from American Eagle;
A multi-million dollar commitment to Neighborhood Reinvestment, Historic
Preservation and Downtown Revitalization; and
In the area of technology, the City has invested in a Geographic Information
System (GIS), is developing a web page and has gone to a paperless agenda,
which will all lead to greater access to information by citizens.
This Fiscal Year 2003 budget is being submitted with a 5% decrease in the City portion
of property taxes for the average homeowner. This will be combined with a 2%
increase in water rates (to fund a new water tower and a major transmission line), a 1%
increase in sewer rates, a 4% reduction in refuse rates (as unit-based pricing is
implemented and a surcharge is added for more than one container), and the creation
of a Stormwater Utility, which is estimated to cost the average homeowner $2 a month.
This is the eighth consecutive year that the amount the average homeowner pays in
City property taxes has not increased. In fact, with this year's 5% decrease, in five of
those years property taxes decreased. Over that same eight-year period, the cost of all
City services has increased for the average homeowner by only $12.87, or an average
of $1.61 a year.
The State equalization order for commercial property actually causes the most difficulty
in this budget process. Each year the City Council has supported not increasing the
property taxes for the average homeowner.
If one of the goals in this year's budget had been to provide no increase in the City
portion of the property taxes for the average homeowner, the State equalization order of
18% in the value of commercial property would mean that, while the average
homeowner saw no increase in their property taxes, a commercial property owner would
see an 18% increase in their property taxes. I understand this would not be acceptable,
and proposed a modification in the property tax guideline for this year of a 5% decrease
from Fiscal Year 2002 for the average homeowner, and the City Council approved this
guideline.
To take a more long-term view, the City portion of property taxes on the average
residential home in Fiscal Year 2003 will be 5.19% less than the Fiscal Year 1988 tax
bill, when sales tax was first initiated. Commercial property tax bills are 27.9% more
than Fiscal Year 1988, and industrial property tax bills are 26.8% less than their Fiscal
Year 1988 tax bills. The shifting of tax burden over that time period from residential and
industrial property to commercial property owners has been the result of bi-annual state-
issued equalization orders and annual changes in the rollback factor.
The different classes of property have changed in that 16-year period by an annual
average of:
Residential -.32
Commercial +1.74
Industrial -1.68
There are some special challenges presented to the City this year. Road Use Tax Fund
Revenues from the State are being reduced drastically, with a $1.5 million loss over five
years. The State is also reducing replacement taxes and shared revenues, which
negatively impact the City's General Fund revenues by almost $100,000 in Fiscal Year
2003. The State is also ordering the City to implement Unit-Based Pricing (UBP) for
refuse collection to encourage recycling.
To address the UBP State-mandate for refuse collection, it is proposed that the monthly
refuse fee be reduced from $7.50 a month in the current Fiscal Year, to $7.20 a month
beginning in September 2002 (after a two-month increase to $8.20) for one can a week
and $1.05 for each additional can each week.
The City has also received the results of the Stormwater Management Study
commissioned after the major over-land flooding in our community. Improvements are
required throughout our community, with over $24 million needed to protect over 1,200
homes north of 16th Street. The formation of a Stormwater Utility is being proposed to
maintain and improve our existing system. It is estimated at this point that the
Stormwater Utility fee would cost the average homeowner approximately $2 a month,
with commercial, industrial and institutional properties without on-site detention paying
much more. The fee would be instituted in January 2003, after further study.
Establishment of a Stormwater Utility would provide funds for the City to do a debt
issuance that would begin the following projects in Fiscal Year 2002-2003:
1. Canter Detention Basin ($875,000);
2. West 32nd Street Detention Basin Improvements ($4,023,000);
3. Pennsylvania/JFK Culvert Improvements ($165,000);
4. Channel Improvements from Keyway to the Northwest Arterial ($970,000);
5. Keyway and Rosemont Culvert Improvements ($413,000);
6. Meet New NPSD Federal Regulations ($100,000); and
7. Bee Branch Creek Restoration Alignment Study ($250,000).
A Federal mandate related to homeland security is being implemented at a cost of
$70,820 to increase security at the Airport.
Funds are being recommended to continue to plan for the future. These include a
Downtown Planning Study ($100,000), an Annexation Study ($25,000) and a
Telecommunications Utility Study ($50,000).
The new City garage to be built on Kerper Court for the Operations and Maintenance
Department has an estimated cost of $10,246,106 at this stage in the design process.
tn Fiscal Years 2003 and 2004, $3,022,389 is budgeted, with the remainder carried over
from Fiscal Year 2002. This facility will also be home to the Water Distribution
Operation currently housed on the Port of Dubuque.
The Mississippi River Education and Conference Center budget is approximately $2
million under-funded if the River Room alternative is constructed as part of the facility.
This recommendation adds $450,000 to the project budget. If costs are not reduced as
design is completed, or through a favorable bidding climate, more funds may need to be
budgeted by repdodtizing other projects or from other sources.
To continue efforts to encourage the construction of owner-occupied housing in our
community, and consistent with City Council action this year on Harvest View Estates
Development, the Sanitary Sewer Revolving Loan Fund (RLF) is continued in the five-
year CIP funded with the original balance approved this year and annual loan
repayments. Also a Water Main RLF is established with $200,000 over the five years.
Along with implementing other elements of the Owner-Occupied Affordable Housing
Task Force Study, with a staff report due in April, hopefully this will begin to encourage
residential construction to provide a place for an available workforce to live. From 1990
to 1994 an average of 125 single-family houses were built per year. In the seven-year
period from 1995 to 2001, only an average of 62 were built per year.
A debt issuance will support the construction of a new water tower at the soccer
complex and extension of a major water main south on JFK Road. The creation of the
fourth pressure zone is providing adequate water pressure to areas of the City located
in higher elevations. The water tower will provide the necessary storage for reserve
water capacity, as well as extra capacity for fire protection. This project will also
indirectly benefit the 550-acre Dubuque Industrial Center West and projects like
McGraw-Hill.
In an effort to positively influence federal legislation, minimize federal unfunded
mandates and obtain federal assistance for City projects, $24,000 is recommended to
implement a strategy creating a City presence in Washington, D.C. This includes
several trips a year to the Capitol, including a major community event sponsored by the
Dubuque Area Chamber of Commerce.
I believe what we have done, what we are doing, and what this budget proposes we do
positions Dubuque for great success. The attitude of our community and the
construction projects throughout town, in spite of a national recession, are evidence of
our success. But, further proof can be found in the following:
· Dubuque was named the 2nd best community in the country for retaining
business;
· The Milken Institute ranked Dubuque 18th in the country for high-tech growth;
· In an international competition, Dubuque was selected as the best tasting
municipal water in the world;
Assessed valuation averaged a 6.05% growth since 1992;
From 1990 to 1995, the City annexed 40 acres of property. Since 1996, nearly
2,500 acres have been annexed;
From 1990 to 1998 the City averaged 350,000 sq. ft. of non-residential
construction per year. For the three-year period from 1999 to 2001, the City is
averaging 1,250,000 sq. ft. of non-residential construction per year;
In 1980, there were 43,700 people working in Dubuque County. By 1990, that
number had climbed to only 46,000. In November 2001, there were 52,700
people working in Dubuque County;
Downtown has seen reinvestment and growth since 1985:
· Fa(;ade Renovations $ 3,214,156
· Building Rehabilitation $40,308,648
· New Construction $34,088,597
· Real Estate Sales $56,834,749
· Public Improvements $11,337,041
· Net New Jobs 1,340
Dubuque fairs very well when our Fiscal Year 2002 City tax rate is compared to
other large cities in Iowa (and this comparison will only improve with the 10.212
tax rate recommended for Fiscal Year 2003):
RANK CITY TAX RATE
1 Waterloo 17.80075
2 Des Moines 17.04857
3 Council Bluffs 15.72002
4 Iowa City 14.84983
5 Davenport 14.60301
6 Sioux City 14.40724
7 Cedar Rapids 13.04000
8 Dubuque 10.76080
9 Ames 9.35614
As we head into the next year, we should first look at calendar year 2001 in review:
January 30 - Everyone's Neighborhood Meeting at Clarke College. The meeting was
held to address issues of workforce retention and welcoming guests. Initiatives to
develop from the meeting include the Community Action Academy, Dubuque365:
Everyone's Neighborhood partnership, and the Disney Institute's Customer Service
Training Program.
February - Four Dubuque companies recognized for excellence in science, technology,
and advanced processes at the inaugural "da Vinci Awards" in Des Moines.
February 13 - Organizers of the America's River project appear before the Vision Iowa
Board in Des Moines, Iowa, to showcase Dubuque's exciting, innovative riverfront
development plans.
March 26 - The Old House Enthusiasts join forces with the City of Dubuque to fund a
study and restoration of the Shot Tower by presenting the City with a $1,000 donation.
April - Medline Industries announces expansion plans for 25 new jobs and more
operations in Dubuque.
April 11 - Vision Iowa Board awards the America's River project $40 million.
April 17 - The City of Dubuque hosts more than 2,000 people at the annual City Expo
2001. This year's theme, "Dubuque: City on the Move," celebrates exciting plans and
progress happening in the community.
Apd122 - Cottingham & Butler Insurance Inc., owner of the of the vintage 1873 Town
Clock Plaza building, received a $120,000 five-year loan from Iowa's Community
Economic Betterment Account. The building also was awarded downtown rehabilitation
money from the City to restore and rehabilitate the structure.
April 24 - The Dubuque Community School District hosts open house and ribbon-
cutting for the Eisenhower School Neighborhood Resource Center.
April 30 - Contractors begin carving a route for the Northwest Arterial extension as
grading begins on a 4.4-mile path through the hilly terrain between western Dubuque
and Sageville.
May 12 - The City of Dubuque Leisure Services Department holds a ribbon-cutting
ceremony for Teddy Bear Park, at the corner of Gabriel and High Cloud Drives.
May 25 - The City of Dubuque Fire Department, in partnership with Marshall School,
hold a ribbon-cutting ceremony for Marshall gardens, located behind Fire Station No. 6
on Rhomberg Avenue.
June 6 -A ribbon- and wire-cutting ceremony celebrate the recent installation of
Qwest's new $7 million digital switch. The telecommunications company serves more
than 25,000 customers in the Dubuque area. The switch is part of the next generation
of advanced telecommunications.
June 11 - CIGNA Retirement & Investment Services hosts a ribbon-cutting for its new
112,000 square foot downtown facility.
June 14 - MetroPlains Development and Heartland Properties hold a "wall bashing"
ceremony for the $3.4 million conversion of the former Iowa Inn/YMCA into affordable
senior apartments.
June 29 - The City of Dubuque hosted a press conference by the Iowa Finance
Authority. The agency announced a new initiative aimed at increasing investment and
home ownership in targeted neighborhoods in Dubuque.
June 30 - Dubuque-based Kirchhoff Distributing Co., announced the construction of a
53,000-square-foot facility on Chavenelle Road.
July 11 - Mainstay Suites opens its doors on the city's west side.
July 21 - The public is welcomed to the grand opening celebration for the new Bunker
Hill Golf Course Clubhouse. The newly remodeled and expanded clubhouse offers
seating for more than 100 people inside and 50 in the three-season porch area.
July 28 - Hundreds of people attend the ribbon-cutting ceremony for the River's Edge
Plaza - the first completed component of the America's River project. The plaza
features brick-red concrete stairs that dip into the Mississippi River and serves as a
landing berth for large excursion vessels. The ribbon-cutting celebration featured
keynote speaker U.S. Senator Charles Grassley; special guests Iowa Governor Tom
Vilsack and Congressman Jim Nussle. Additionally, the Ice Harbor hosted a special
showing of the world famous Budweiser Clydesdales.
September 19 - Dubuque City Council approved the last large downtown-rehabilitation
loan it can make this fiscal year when it allotted $73,000 for the restoration of the Grand
Opera House's facade.
October 2 - To celebrate the completion of nearly $750,000 in renovations, the Five
Flag Theater hosted a Grand Opening and Ribbon-Cutting Ceremony with
entertainment and refreshments.
October 11 - The Dubuque County Board of Supervisors awarded the $7.6 million
construction contract for construction of an addition to the Dubuque County/City Law
Enforcement Center to Prism Corp. Southwest, of Kieler, Wis., during a Board of
Supervisors meeting.
October 24 - Eagle Window and Door holds the official welcome and tour of its new
390,000 square foot state-of-the-art facility. The new facility brings all the company's
operations under one roof and on one level.
October 27 - Loras College officials are planning two major construction projects as
work on one of the biggest campus additions in school history enters its final stages.
With the $16 million 90,000 sq. ft. Academic Resource Center just a few months from
completion, Loras officials are laying the groundwork for a new $4.5 million residence
facility and a new athletic complex that would include a 2,500-seat basketball arena.
Also in the plans is the renovation of Keane Hall.
November 18 - Alliant Energy Inc. purchases 16.67 acres at the Dubuque Industrial
Center West for the company to expand its Dubuque operations.
November 20 - Dubuque Area Chamber of Commerce holds ribbon-cutting for Harbor
View Building, the new home for the Chamber, Greater Dubuque Development Corp.,
and others at the location of the former Merchants Hotel.
November 21 - For the first time in a generation, Deere & Co. announced it will bring a
new production line to its John Deere Dubuque Works operation, creating nearly 300
jobs. The Moline, Ill.-based company announced it plans to close and sell its Loudon,
Tenn., skid steer-loader factory and move production to the Dubuque plant.
November 28 - City, county and corporate officials gathered at the Dubuque Industrial
Center West for the official ground-breaking ceremony for McGraw-Hill Company's
planned 330,000-square-foot distribution facility.
December - The Dubuque Fire Department takes possession of its $850,000 custom-
made fire truck. The firefighting vehicle features a telescoping boom with an 18-foot jib
section that has a vertical reach capability of 118 feet. The jib section allows the
platform to go up and over the top of walls and to do river rescues.
December- Pepper Sprout, an upscale restaurant featuring Midwestern cuisine, opens
for appointments. The business is housed in the former Monte Carlo Restaurant
located in the Historic Main Street area. The official opening is January 2002.
December - Heartland Financial announces an expansion project that will create 45
new jobs and re-develop Dubuque's historic Walsh Building.
December 13 - Bricktown opens for business. Housed in the historic Cooper Wagon
Works building, the new facility will eventually include two restaurants, a micro brewery,
a reception facility, and office space.
A recent article on economic development in Julien's Joumalwritten by Greater
Dubuque Development Corporation Executive Director Rick Dickinson included a quote
from William Jennings Bryan that epitomizes Dubuque, "Destiny is not a matter of
change, it is a matter of choice. It is not a thing to be waited for; it is a thing to be
achieved.~
I would like to say how much I appreciate the courageous and entrepreneurial
leadership of the Mayor and City Council and how much I enjoy working with
Corporation Counsel Barry Lindahl and City Clerk Jeanne Schneider.
I would like to thank Administrative Service Manager Pauline Joyce, Office Manager
Juanita Hilkin, Secretary Kevin Firnstahl, the Department Managers and Commissions
for all their hard work on this budget.
I respectfully submit this budget to the Mayor and City Council 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
Attachment
cc: Barry Lindahl, Corporation Counsel
Jeanne Schneider, City Clerk
Cindy Steinhauser, Assistant City Manager
Pauline Joyce, Administrative Services Manager