FISCAL YEAR 2020 BUDGET RECOMMENDATION Feb. 4, 2019

FY2020 Recommended City Tax Rate = $10.3314 per thousand PROPERTY TAXES FY2020 Recommended City Tax Rate = $10.3314 per thousand 2.43% decrease from FY2019

PROPERTY TAX RATE Property Tax Rate Decrease of 2.43% Impact: -2.43% % Change $ Change Property Tax Rate -2.43% -$0.26 Average Residential Payment --- Average Commercial Payment -1.48% -$48.53 Average Industrial Property -1.79% -$87.16 Average Multi-Residential Property -7.07% -$132.29

PROPERTY TAXES

PROPERTY TAXES Dubuque is the SECOND LOWEST in the state for property tax rate of the 11 largest cities. The highest (Council Bluffs) is 77% higher than Dubuque and the average is 47% higher than Dubuque.

PROPERTY TAXES PER CAPITA

Dubuque is the LOWEST in the state for property taxes per capita. The highest (West Des Moines) is 153% higher than Dubuque and the average is 68% higher than Dubuque.

CITY DEBT City will issue $44,941,848 in new debt in the recommended 5-year CIP City will access $18,868,490 of previously issued State Revolving Rund (SRF) loans as related capital improvement projects progress

CITY DEBT: FY2020-2024 The City will retire $91,655,428 of existing debt over the next five years

CITY DEBT: FY2020-2024 New Debt Being Issued Purpose Amount Sanitary Sewer Improvements $16,687,926 Fire Equipment/Improvements $6,785,346 Five Flags Improvements $5,025,000 Street Improvements $4,402,400 Economic Development Initiatives $2,957,495 City Building/Property Improvements $1,781,000 Airport Improvements $1,127,538 General Ledger Software Upgrade $1,000,000 Transit Bus Replacements $986,143 Park Improvements $600,000 Parking Improvements $3,589,000 Total New Debt: FY2020-FY2024 $44,941,848

CITY DEBT SRF Debt Being Accessed Project FY2020 FY2021 FY2022 FY2023 Total Sanitary Sewer:  Kerper Blvd. SRF $1,390,000 Stormwater: Upper Bee Branch & Sponsor SRF $247,668 $247,664 $495,332 Stormwater: Flood Mitigation Project SRF $9,000,000 $1,820,958 $10,820,958 Water: Roosevelt St. Tower SRF $2,982,200 Water: CIWA Purchase & Improvements $1,090,000 $1,060,000 $1,030,000 $3,180,000 Total Draw Downs $14,709,868 $3,128,622 $18,868,490

CITY DEBT

CITY DEBT: RETIRED vs. NEW Millions

FY2016 – FY2020 $28,800,000 (9.77%) Reduction in Debt CITY DEBT: RETIRED vs. NEW FY2016 – FY2020 $28,800,000 (9.77%)  Reduction in Debt

CITY DEBT: RETIRED vs. NEW FY2020 - FY2024 City will retire $91,655,928 of existing debt  City will issue $44,941,848 in new debt  City will access $18,868,490 of previously issued State Revolving Fund (SRF) loans Net change is a reduction of $27,865,590 (10.44%) of debt over the next five years

Net Debt Reduction: FY2020 - FY2024 CITY DEBT Net Debt Reduction: FY2020 - FY2024 Project FY2020 FY2021 FY2022 FY2023 FY2024 Total New Debt $2,836,487 $13,777,669 $9,363,511 $5,186,976 $13,777,204 $44,941,848 Previously Issued SRF Draw Downs $14,709,868 $3,128,622 $1,030,000 --- $18,868,490 Retired Debt -$17,618,998 -$18,014,968 -$17,320,037 -$19,853,388 -$18,868,537 -$91,675,928 Net Debt Reduction -$72,643 -$1,108,677 -$6,926,526 -$13,681,561 -$6,076,183 -$27,865,590

Outstanding Revenue Bonds Debt on June 30, 2020 = $150,450,197 CITY DEBT Projected Outstanding General Obligation Debt on June 30, 2020: $116,425,803 (51% of statutory debt limit) Available debt capacity = $111,235,671 FY2016: Dubuque was at 86.13% of statutory debt limit FY2020 = 35% decrease in use of statutory debt limit Outstanding Revenue Bonds Debt on June 30, 2020 = $150,450,197

CITY DEBT

Statutory Debt Outstanding % of Legal Debt Limit Utilized CITY DEBT: FY2018 DEBT LIMIT COMPARISON Rank City Legal Debt Limit (5%) Statutory Debt Outstanding % of Legal Debt Limit Utilized 11 Des Moines $569,816,717 $416,130,930 73.03% 10 Sioux City $213,569,727 $144,100,000 67.47% 9 Davenport $330,626,114 $211,165,000 63.87% 8 Waterloo $191,406,282 $108,225,490 56.54% 7 Cedar Rapids $518,039,169 $271,585,000 52.43% 6 Ankeny $245,580,138 $126,830,000 51.65% 5 West Des Moines $359,449,675 $184,720,000 51.39% 4 Dubuque (FY20) $227,661,474 $116,425,803 51.14% Dubuque (FY24) $246,428,101 $105,406,783 42.77% 3 Ames $209,227,522 $65,480,000 31.30% 2 Council Bluffs $241,950,558 $68,725,096 28.40% Dubuque (FY29) $272,076,536 $76,004,423 27.93% 1 Iowa City $274,723,837 $66,945,000 24.37%

GENERAL FUND RESERVE The reserve will increase by $2,800,000 (20.3%) from Fiscal Year 2019 - Fiscal Year 2024.   FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Contribution $1,050,000 $1,700,000 $1,000,000 $100,000 General Fund Reserve  $16,460,491  $15,485,326  $16,185,326  $16,285,326  $16,385,326  $16,485,326 $16,585,326 % of Projected Revenue (Moody’s) 23.81% 22.02% 22.86% 22.93% 23.46% 22.92% 22.25%

General Fund Reserve as a Percent of General Fund Revenue

CITY UTILITIES FY2019 Rate Recommendations: Sanitary Sewer: 4.5% increase Water: 5% increase Solid Waste Collection: 1.63% increase Stormwater: 6.83% increase* *Recommendation does not change amount previously approved by City Council

IMPROVEMENT PACKAGES 116 of 142 requested are recommended $830,923 recurring from general fund $442,051 non-recurring from general fund $304,768 from non-property tax support

Thursday, March 7: Public Hearing to Adopt the FY2020 Budget FY2020 BUDGET PUBLIC MEETINGS Thursday, Feb. 7 Monday, Feb. 11 Wednesday, Feb. 13 Thursday, Feb. 21 Monday, Feb. 25 Wednesday, Feb. 27 Thursday, March 7: Public Hearing to Adopt the FY2020 Budget Meetings start at 6 p.m. and will be broadcast on CityChannel Dubuque