CityCity ofof Dubuque,Dubuque, IowaIowa Citizen’s Guide

Fiscal Year 2006 Recommended Budget Budget in Brief -2- CITY OF DUBUQUE CITIZENS GUIDE TO THE RECOMMENDED FISCAL YEAR 2006 BUDGET

FISCAL YEAR BEGINNING JULY 1, 2005 AND ENDING JUNE 30, 2006

CITY COUNCIL

Terrance M. Duggan, Mayor

Roy D. Buol John H. Markham

Patricia A. Cline Ann E. Michalski

Joyce E. Connors Daniel E. Nicholson

ADMINISTRATIVE STAFF

Michael C. Van Milligen City Manager

Cynthia M. Steinhauser Assistant City Manager

Dawn L. Lang Budget Director

Kenneth J. TeKippe Finance Director

Juanita A. Hilkin Office Manager

Kevin S. Firnstahl Secretary

-3- -4- CITY COUNCIL'S FISCAL YEAR 2006 BUDGET HEARING SCHEDULE

DATE DAY TIME PLACE TOPIC

January 17 Monday 6:30 p.m. Library Budget document presentation to City Council at Council Meeting

February 15 Tuesday 6:30 p.m. Library Human Rights Finance City Manager City Council City Clerk Legal Adjournment

February 16 Wednesday 6:30 p.m. Library Emergency Communications Ctr Emergency Management Fire Police Building Adjournment

February 22 Tuesday 6:30 p.m. Library Water Water Pollution Control Operations & Maintenance Engineering Adjournment

February 24 Thursday 6:30 p.m. Library Civic Center Recreation Park Information Services Cable TV Adjournment

February 28 Monday 6:30 p.m. Library Economic Development Library Parking Transit . Housing/Community Development Adjournment

March 2 Wednesday 6:30 p.m. Library Airport Health Planning Services Purchase of Services Adjournment

March 9 Wednesday 6:30 p.m. Library Public Hearing

-5- -6- TABLE OF CONTENTS

-7- -8- TABLE OF CONTENTS Citizens Guide To The Recommended Fiscal Year 2006 Budget

Budget Message Page FY 2006 Budget Transmittal Memo 13 Guiding Principles of the Management Philosophy .40 Costs of Municipal Services 41 Street Program Overview 42 Fiscal Year 2006 Budget Recommendation : 43 Impact of Recommended Budget on Classes of Property 44 Fiscal Year 2006 Budget Preparation Guidelines .46 Summary of Recommended Decision Packages 47 Personnel Changes in Recommended FY 2006 Budget 59 Assumptions Used in Budget Preparation 62 Partnerships and Contracted Services 65

Overviews Fiscal Year 2006 Recommended Budget Fact Sheet. 69 City of Dubuque Organization Chart 72 City of Dubuque Boards and Commissions , 73 Personnel Complement Summary - FY 1981-FY 2006 74 Long-Range Revenue and Expenditure Trends - (Historical) 78 Fund Balance, Income, and Expense Summary - Fiscal Year 2006 93

Prior Year Accomplishments and Future-Year Initiatives Alphabetical by Department. 97

Revenue Summaries Estimated Assessed Valuation , 217 Estimated Tax Rate and Tax Levy 218 Where the Money Comes From - Pie Chart : 219 Fiscal Year 2006 Operating and Capital Budget - Sources of Income 223 Distribution ofProperty Tax - City Share - Pie Chart 225 Fiscal Year 2006 Recommended Net Operating Budget by Department 227 Distribution of City Portion of Property Tax Payment - Residential Property Example 228 -9- TABLE OF CONTENTS Citizens Guide to the Recommended Fiscal Year 2006 Budget·

Expenditure Summaries Page How the Money is Spent - Pie Chart 231 Fiscal Year 2006 Recommended Operating Budget 233 Grand Total Summary 235 - Major Object of Expenditure - Operating Budget by Fund - Capital Budget by Fund Department Summary by Major Category of Expenditure 238 Fund and Department Summary by Major Category of Expenditure 239 Distribution ofCommunity Development Funds 245

General Obligation Debt and Debt Capacity Summary of Bonded Indebtedness - Fiscal Year 2005-2006 255 Statutory Debt Capacity 256

Capital Budget City Manager's Fiscal Year 2006-2010 Capital Improvement Program Budget Message 259 Recommended Capital Improvement Program Summary - .Fiscal Years 2006-2010 277

Appendices Overview of Budgeting 297 - BUdget Accounting Basis - Fund Accounting Basis Key Terms for Understanding DUbuque's BUdget System 306 Fiscal Year 2006 Policy Guidelines 313

-10- CITY MANAGER'S

BUDGET MESSAGE

-11- -12- DU~~E MEMORANDUM ~~~

January 13, 2005

TO: The Honorable Mayor and City Council Members

FROM: Michael C. Van Milligen, City Manager

SUBJECT: Fiscal Year 2006 Budget Transmittal Message

As the Fiscal Year 2006 Budget Year is considered, I believe in this watershed year that we should take a historical perspective, and then reflect on our current circumstances. But first, why do I call this a watershed year? In 1999 the City of Dubuque had no 4­ lane connections to an interstate highway system. By the end of 2005, the City of Dubuque will have five 4-lane connections to the outside world as follows: .:. 1999 - Highway 61 4-laned to Interstate 80 at Davenport, .:. 2004 - Highway 20 4-laned to Interstate 35 north of Ames, .:. 2004 - Highway 151 opened 4-lanes to Highway 380 in Cedar Rapids, .:. 2004 - Highway 218 in Waterloo, connected to Dubuque by 4-lane Highway 20, opened 4-lane as part of the Avenues of the Saints that connects Highway 20 to Minneapolis/St. Paul, and .:. 2005 - Highway 151 will open 4-lanes to Interstate 90-94 at Madison, Wisconsin.

You are about to hear an extraordinary story about a community that averaged 8.9% unemploymentfor the entire decade of the 1980s with an unemployment rate over 14% in 1983. This community lost 7.8% of its population (4,836 people) between 1980 and 1990. It was a community with very few, if any, lots available for industrial development. The town was dominated by two major employers, one that had cut back 6,000 jobs and the other was on the brink of closure, which would eliminate 2,000 jobs. This town had a blighted downtown area, home to the XXX Cinema and the Gentleman's Bookstore, with many vacant storefronts. A blighted riverfront with falling-down buildings, polluted ground and huge, abandoned storage tanks. A town with aging parks, and too few of those, and a street system that was decaying at a much faster rate than it was being rebuilt. A town with no 4-lane connections to the outside world, an airport in serious need of upgrading and phone service provided by one antiquated analogue telephone switch. This community had hundreds of homes vulnerable to stormwater flooding and operated an outdated water plant and sewer plant. A town with vacant and abandoned

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homes that needed attention. A town in need of an arterial roadway, having a short section completed with only two lanes. A property tax rate reaching $14.58 per thousand in 1987 and all but non-existent annexation.

A 1983 publication of the Dubuque Area Chamber of Commerce entitled "The DUbuque Connection," said, "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." The publication went on to say, "Dubuque is losing its people. Recent estimates show 10% of the housing stock vacant or available for sale."

Then (new and existing) City Council Members and community leaders decided it was time for a change. This town had some tremendous assets to build upon. A historic past; a hardworking, caring citizenry; beautiful rock bluffs and hills; the mighty Mississippi River; and, most importantly, vision, leadership and a willingness to form partnerships externally and internally. From that, with the Mayor and City Council providing much of those final three key elements, grew the Dubuque of today and the bright future that exists for tomorrow. Today, Dubuque is a community receiving national and international awards (Attachment I), identified as a model for how to do things right. Elected officials are selected for leadership positions with the Iowa Department of Economic Development, National League of Cities, Iowa League of Cities, and others. Property taxes are down and benefits to citizens are up. Dubuque is truly the "Masterpiece on the Mississippi."

The City Council's entrepreneurial leadership, stressing partnerships and a willingness to make difficult policy decisions, allowing for calculated risk-taking, has set Dubuque on a dramatic course for a bright future.

American City and County Magazine selected Dubuque as one of only six "Crown Communities" in 2003, recognizing the community's achievements.

A 2004 Julien's Journal article written by the editor and publisher referred to the last 10 years in Dubuque as, "...what is viewed by many as among the most productive and exciting periods in the City's history."

We all remember the December 2002 editorial in the Des Moines Register titled, "Dubuque Shows How-Few Iowa Cities were hit harder in the 80's. Few have a better outlook now." The editorial went on to say, "The Dubuque story might offer lessons for every Iowa city."

The May 2004 issue of Expansion Management Magazine selected Dubuque as one of just 50 five-star communities in the country. Identifying schools and home affordability as the two most important quality of life issues, they selected Dubuque as #7 in quality of schools and #1 in housing affordability. They also ranked Dubuque #11 in peace of mind for its level of safety.

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In 2004, Country Music Television named Dubuque County as the #4 Top Destination to Visit Worldwide.

In May 2003, USA Weekend magazine selected the Upper Mississippi River Valley as the Third Most Beautiful Place in America.

The Milken Institute's 2004 Best Performing Cities Index, which monitors where jobs are being created, ranked Dubuque 34th out of 118 small U.S. metropolitan areas.

Forbes Magazine ranked Dubuque 13th out of 168 cities for the Cost of Doing Business.

The Metro Business Retention Index ranked Dubuque 2nd in the nation for business retention in November 2001.

Most recently, the January 5, 2005, editorial in the Telegraph Herald was titled, "Good news plentiful for Dubuque in past year - From new construction to businesses adding jobs, the City has progressed."

The growth and progress you are about to review has come to Dubuque without creating a huge financial burden for the citizens and without mortgaging their future. The City of Dubuque property tax rate for the City-portion of the property tax bill reached a high of $14.58 in Fiscal Year 1987. The Dubuque Greyhound Park and Casino, the Local Option Sales Tax and operating efficiencies brought the property tax rate down to $12.61 by Fiscal Year 1994. The current recommendation for the Fiscal Year 2006 property tax rate is $9.6991 per thousand. This will mean that the Fiscal Year 1987 property tax rate of $14.58 was 50% higher than the Fiscal Year 2006 property tax rate of $9.6991.

The City of Dubuque's bond rating was upgraded in 2003 and is the second highest rating in the State of Iowa (Aa2).

Of the nine largest cities in the State of Iowa, the City of Dubuque has the lowest percentage of legal debt margin projected to be utilized for Fiscal Year 2006 at 20%. The highest ranked city, Des Moines (81 %), is 300% higher than Dubuque, and the average of the other cities (59%) is 190% higher than Dubuque.

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Iowa's Largest Cities Legal Debt Margin

Actual Total debt Assessed applicable to Percentage Value of limitation of legal debt Taxable Legal Debt (General Legal Debt margin Rank City Property Limit (5%) Obligation) Margin utilized 9 Des Moines 8,627,347,423 431,367,371 348,112,808 83,254,563 80.70% 8 Cedar Rapids 6,863,045,371 343,152,269 250,985,000 92,167,269 73.14% 7 Waterloo 2,421,873,270 121,093,664 75,643,160 45,450,504 62.47% 6 Davenport 4,234,680,680 211,734,034 129,560,074 82,173,960 61.19% 5 Sioux City 3,110,454,871 155,522,744 92,855,494 62,667,250 59.71% 4 Iowa City 3,322,001,000 166,100,050 85,085,000 81,015,050 51.23% 3 Council Bluffs 2,435,392,439 121,769,622 56,395,000 65,374,622 46.31% 2 Ames 2,429,777,471 121,488,874 40,945,000 80,543,874 33.70% 1 Dubuque (FY06) 2,754,264,775 137,713,239 27,819,306 109,893,933 20.20%

AVERAGE WITHOUT DUBUQUE 58.56%

2004 was another banner year for the City of Dubuque. The renegotiated 10-year Dubuque Racing Association lease, with the lease payment going from %% of coin-in to 1% of coin-in, will allow the City to aggressively pursue the City Council priorities while maintaining no property tax increase to the average homeowner. This will include a 3.7% reduction in the property tax rate in Fiscal Year 2006 to coincide with the application of the property values for the new City-wide reassessment process. This will bring the City property tax rate down to $9.6991 per thousand. The City of Dubuque will have the lowest property tax rate of the nine largest cities in the State of Iowa, probably for the first time ever. The highest ranked city (Waterloo - $18.79) will have a property tax rate 94% higher than Dubuque's, and the average of the other eight large cities ($15.89) will be 63% higher than Dubuque. Access to new revenue from the DRA helps, but so does the City's continued efforts to operate efficiently, with a reduction in workforce since the 1980's of approximately 68 employees, or a 12% reduction of the City workforce, while adding many labor-intensive new services, like recycling and yard waste collection, and 16 new sworn police positions.

This additional year of no property tax increase to the average homeowner will bring that record to 11 consecutive years without a property tax increase for the average 1 homeowner , with five of those years showing a decrease to the average homeowner, and an actual decrease from City Council actions of 7% in property tax payments to the City for the average homeowner.

1 The State of Iowa increased property taxes in Fiscal Year 2004 by reducing the amount of credits provided to residential property owners.

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Tax Rate Comparison for Nine Largest Iowa Cities

Rank City Tax Rate

9 Waterloo $18.79 8 Sioux City $17.79 7 Council Bluffs $17.77 6 Iowa City $17.31 5 Des Moines $17.05 4 Davenport $15.24 3 Cedar Rapids $13.22 2 Ames $9.95 1 Dubuque $9.6991 (FY06 Proposed)

AVERAGE WITHOUT DUBUQUE $15.89

What else has contributed to this being a watershed time for Dubuque? In November 2003, the Grand River Center opened to rave reviews from the community. This major project was completed ahead of schedule and under budget. We all remember the property acquisitions, grant applications, studies and partnerships that led to the completion of the signature project for the City of Dubuque using $20 million in State of Iowa Vision Iowa money; The Riverwalk and the Mississippi River Museum and Aquarium opened in 2003, with the museum also using $20 million in Vision Iowa money.

The entire America's River project used millions of dollars in federal money, including the $2 million in Federal Economic Development Administration money that facilitated the relocation of the Adams Company. The relocation of Dubuque Hardwoods and Miller Logging was accomplished in late 2002.

The Pay-As-You-Throw refuse collection program has been a success with a 24% reduction in refuse and a 33% increase in recyclable material, saving landfill space.

Including 2004 (927,735 square feet), the City has a six-year annual average of almost 1 million square feet of non-residential construction per year. This almost 6 million square feet of non-residential construction over six years far exceeds the annual average of 350,000 square feet of non-residential construction from 1990 to 1998.

The year 2004 also saw continued growth in the number of residential units, with 536 units being constructed (including two major senior assisted living facilities). This is the highest number in recent memory (with 1995's number of 209 being the next highest). The 2004 total of 536 units is more than the last three years combined (482). The 2004 total of 536 units is also 272% higher than the previous nine-year average of 144 units per year.

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Building Services Permit Clerk Connie Riedl advises that June 2004 was the highest month for permit fees ($89,696) since she began with the City 24 years ago. That record was broken in October 2004 when there was $91,159 in permit fees.

The total assessed valuation of Dubuque has increased 83.2% over the last 15 years, from $973,733,675 in 1992 to $1,784,001,357, which is an average increase of 4.46% per year. The City's efforts to target this growth in Urban Renewal and Economic Development Districts like downtown and the riverfront are having some affect. Tax Increment Financing values have increased 172% since Fiscal Year 1994, or an average of 15.44% per year.

The Greater Dubuque Area has been ranked 1st by the Milken Institute for High Tech Output Growth from 1997 to 2002.

American Airlines added a fourth daily flight to Dubuque. Enplanements at the airport are up 1.04% in 2004. American Airlines enplanements are up 19.58% in 2004.

The Iowa Welcome Center has identified a marked increase in visitor counts, with monthly visitor counts up 20 to 25%.

In 2002, Dubuque County finished the year with an overall average unemployment rate lower than the State of Iowa for the first time in a quarter of a century. In 2003, Dubuque County made it two consecutive years of an unemployment rate lower than the State of Iowa. In 2004, Dubuque County not only had an unemployment rate lower than the State of Iowa for the third consecutive year, but the rate was also the lowest of the nine largest cities in the state.

In 2002, Dubuque, Des Moines and Sioux City were the only metro areas in Iowa to finish the year with net job gains.

Statistics kept by Iowa Workforce Development show the positive momentum Dubuque is experiencing. By comparing the number of jobs in Dubuque County in 1980 (43,700) with 1990 (46,000) with November 2004 (53,500), you can see that efforts being put forth to attract and retain jobs have been successful, with the rate of job creation increasing from 230 per year in the 1980's to over 500 per year from 1990 to 2004.

The Greater Dubuque Development Corporation commissioned a study through the East Central Intergovernmental Association to analyze how conducive the City is to development. It was noted that there was a dramatic improvement over the last 10 years, especially in the area of Planning and Building Departments.

Partnerships and City investment have been key in the redevelopment of downtown, including the Port of Dubuque. Since 1985 the following has occurred with most of the investment and jobs happening recently:

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Fa~ade Building New Real Estate Public Net New Renovation Rehabilitation Construction Sales Improvement Jobs $5,363,705 $69,180,980 $118,517,663 $82,870,196 $26,804,614 +1,759 34% since 61% since 83% since 57% since 79% since 44% 2003 1999 2000 1999 1999 since 2000

The stagnant-to-decreasing population trend for the 1980 census (62,374) to the 1990 census (57,538) is starting to turn around with the 2000 census (57,686) results showing an increase.

Dubuque continues to grow geographically. Between 1990-1995, only 40 acres were annexed into the City of Dubuque. Since 1995, just over 3,700 acres have been annexed into the City. Much of this is a credit to the utility extensions by the City, which opened up almost 7,000 acres of land for development.

Transportation links are being created. The federal government has provided most of the $25 million that has been invested at the Dubuque Regional Airport since 1995. Between Wisconsin, Iowa and Illinois, over $400 million is being spent between 1998 and 2005 to create 4-lane connections to the Quad Cities, Ames, Cedar Rapids, Minneapolis and Madison, with improvements to Chicago. There is the possibility of an additional $45 million in federal funds in the new Transportation Bill for the expansion of the Julien Dubuque Bridge and to build the Southwest Arterial.

The City Council realizes the importance of Dubuque's neighborhoods. All existing parks were remodeled and 21 new parks, consisting of over 60 acres, were created. Thisdoes not include the several school playgrounds that have been equipped by the City and opened to the public. The City Council has more than tripled the commitment to the street program to an annual average of $7.5 million, reconstructing or resurfacing 70% of the streets between 1990 and 2009. $9,178,415 is recommended in Fiscal Year 2006 (this includes new streets in Dubuque Industrial Center West). Approximately 30 abandoned properties were purchased and rehabilitated. Sixteen police officers were added and Community-Oriented Policing was implemented, reducing high-impact crimes in targeted neighborhoods. Historic Preservation was emphasized, with new financial support programs and the adoption of standards for projects. A new full-time position in the Planning Department is recommended in Fiscal Year 2006 to be dedicated to Historic Preservation, replacing a half-time position.

Prosperity spills over to many areas, including the schools. The Dubuque Community School District is completing a new $30 million middle school, completed a multi-million renovation of Hempstead High School, and is planning for a new downtown school to break ground in 2005. The downtown school includes a partnership with the City for a Neighborhood Resource Center. This is all the product of two successful referendums, first an instructional support levy and then a $100 million local option sales tax.

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A Laborshed Survey commissioned by the Greater Dubuque Development Corporation shows that in just the last two years the laborshed has doubled in size, with people commuting even greater distances to work in Dubuque. These people not only come here to work, but they come here for entertainment and to shop. Major retailers like Kohl's, Best Buy and Borders have chosen to locate in Dubuque.

The City has received international, national, state-wide and local recognition for what has been accomplished in the recent past. In Iowa, when compared to the other large cities, Dubuque is #1 in most financial benchmarking categories.

The City of Dubuque uses the lowest percentage of its available debt margin (20%).

The City of Dubuque has the 2nd highest bond rating of the comparable cities; in fact, the City's bond rating was upgraded in 2003.

In Fiscal Year 2006, the City of Dubuque will have the lowest property tax rate of comparable cities, at $9.6991 per thousand.

Just as important in this case is the trend line. Since Fiscal Year 1994, the City portion of the property tax rate has gone down from $12.61 to $9.6991 in Fiscal Year 2006, while Ames, the city which previously had the lowest property tax rate, is trending up. With the City-wide property value reassessment going on-line in Fiscal Year 2006, to keep the average homeowner at no increase in property taxes, the City of Dubuque property tax rate will fall below $10 per thousand and be lower than Ames' property tax rate. In Fiscal Year 2006, Dubuque will have the lowest property tax rate of the nine largest cities. This will help to continue the City's competitiveness for economic development projects. This will also be done in conjunction with the new ORA lease payments and operational efficiencies, like privatization of Five Flags, which will allow the implementation of City Council priorities.

In Fiscal Year 2006, the City of Dubuque will have the third lowest stormwater utility rate in the State at $1.79. The highest ranked city (Des Moines - $5.55) is 310% higher than Dubuque's rate and the average ($2.40) is 34% higher than Dubuque. Financing the cost of the $38,694,949 Drainage Basin Master Plan will take a combination of revenues from the Dubuque Racing Association and an increase in the monthly Stormwater Fee. The ORA funds and the Stormwater Fee revenues would be used to retire general obligation debt, a variance from previous funding plans. Debt is being used so this project can be completed in a reasonable time-frame, while the costs are spread over a long period of time. The City will also continue to pursue federal grants.

The recommended Stormwater Fee to implement the program to protect over 1,150 Dubuque properties from stormwater flooding is to leave the current $1.29 per month fee in place until the end of Fiscal Year 2005. At the beginning of Fiscal Year 2006, July 1,2005, the monthly fee would increase to $1.79. This adjustment to $1.79 has been mentioned in the past as the impact of not receiving a back tax payment from the State of Iowa when the ORA lawsuit against the State was settled. At the beginning of

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Fiscal Year 2007, July 1,2006, the monthly fee would rise to $2.00. The fee would then increase 25¢ a year until Fiscal Year 2013, when it would reach $3.50 a month, and continue at that rate until Fiscal Year 2032. These funding projections assume that approximately $35 million of DRA revenues will be dedicated to implementation of the plan and the City will receive federal financial assistance to relocate the storm sewer lines as part of the Julien Dubuque Bridge expansion project.

Stormwater Utility Rate Comparison for Citie"s In lowa*

Rank City Rate

17 Des Moines $5.55 16 Ackley $3.08 15 Carroll $3.00 14 Cedar Rapids $2.80 13 Garner $2.63 12 Dewitt $2.50 11 Marshalltown $2.16 10 Iowa City $2.00 9 Burlington $2.00 8 Boone $1.95 7 Sioux City $1.84 6 Dubuque* $1.79 (FY06 Proposed) 5 Ames $1.50 4 Clear Lake $1.50 3 Bettendorf $1.50 2 Mason City $1.00 1 Marengo $1.00

AVERAGE WITHOUT DUBUQUE $2.40

* There are three residential rates: 85% of the homes pay the $1.79 rate, smaller homes pay less and larger homes pay more.

It is recommended for Fiscal Year 2006, that the City of Dubuque monthly refuse rate be raised to $8.70 from $8.51 in Fiscal Year 2005. The City of Dubuque would have the lowest monthly refuse rate of the comparable cities at $8.70. The highest-ranked city (Ames - $20.50) is 135% higher than Dubuque's rate, and the average ($13.03), is 50% higher than Dubuque. This City of Dubuque rate of $8.70 has been reduced from $9.50 in Fiscal Year 1994 as efficiencies like one-person crews have been implemented over the years through employee involvement teams.

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Refuse Rate Comparison for Nine Largest Iowa Cities

Monthly Rank City Rate

9 Ames $20.50 8 Cedar Rapids $13.20 7 Sioux City $13.00 6 Iowa City $12.10 5 Council Bluffs $12.00 4 Waterloo $12.00 3 Des Moines $11.75 2 Davenport $9.72 1 Dubuque $8.70 (FY06 Proposed)

AVERAGE WITHOUT DUBUQUE $13.03

It is recommended that for Fiscal Year 2006, the sanitary sewer rate rise to $14.43 from $13.68 in Fiscal Year 2005. The City of Dubuque would be tied for the lowest sanitary sewer rate of the comparable cities at $14.43 per month. This is an improvement from second place in Fiscal Year 2004. The highest-ranked City (Iowa City - $31.82) is 121% higher than Dubuque's rate and the average ($18.95) is 31% higher than Dubuque. This department has seen a reduction in staff and a multi-million dollar remodeling through employee involvement teams.

The recommended budget includes a 5.5% sanitary sewer rate increase effective July 1,2005. A normal growth factor of 1% has been anticipated in the Fiscal Year 2005 Water Pollution Control (WPC) fee revenue.

The Water Pollution Control Plant has made every effort to operate efficiently with a reduction from 37 employees in Fiscal Year 1982 to 18 employees in Fiscal Year 2005. The average annual rate increase from Fiscal Year 1993 through Fiscal Year 2005 is 1.6%, far below the rate of inflation. However, the closing of the Smithfield Meatpacking Plant and the efficiencies being implemented by the plant's three largest industrial customers (Inland Protein, Swiss Valley Dairy and San Rouesslot) has reduced revenues, causing costs to be spread over a smaller revenue base. In Fiscal Year 1999, the City sewer revenue from the four major industrial customers was $1,100,107. In Fiscal Year 2006, the revenue projected from the remaining three large customers is $469,160, a 57% reduction.

For Fiscal Year 2006, revenue from Swiss Valley Farms is showing a $25,000 reduction from Fiscal Year 2005 due to reduction and effluent clean up; Inland Protein is showing a $120,000 reduction from Fiscal Year 2005 due to the impact of Mad Cow Disease and government regulations on use of animal by-products for protein feed; and San

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Rouesslot is showing an $8,000 reduction due to their implementation of a new solids removal process.

Sanitary Sewer Rate Comparison for Nine Largest Iowa Cities

Rank City Sewer Rate (Based on 800 cubic feet/month)

9 Iowa City $31.82 8 Des Moines $22.22 7 Waterloo $18.95 6 Sioux City $17.11 5 Ames $16.78 4 Davenport $15.13 3 Council Bluffs $15.12 2 Cedar Rapids $14.43 1 Dubuque $14.43 (FY06 Proposed)

AVERAGE WITHOUT DUBUQUE $18.95

It is recommended that the water rate rise to $13,84 in Fiscal Year 2006 from $13.28 in Fiscal Year 2005. The City of Dubuque has the second-lowest water rate of comparable cities at $13.84 per month. The highest-ranked city (Iowa City - $30.34) would be 119% higher than Dubuque's rate and the average ($18.97) would be 37% higher than Dubuque.

Water Rate Comparison for Largest Iowa Cities with Water Softening

Rank City Water Rate (800 cubic feet/resident average)

6 Iowa City $30.34 5 Ames $18.42 4 Council Bluffs $17.44 3 Des Moines $15.86 2 Dubuque $13.84 (FY06 Proposed) 1 Cedar Rapids $12.81

AVERAGE WITHOUT DUBUQUE $18.97

This is all being accomplished while citizen satisfaction with service levels appears to be high and the City is growing and receiving recognition from many sources.

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The City’s ranking among the nine largest cities in the State of Iowa in important financial categories, based on the Fiscal Year 2006 recommendations, is as follows:

ISSUE RANK

Lowest Property Tax Rate #1 Best Bond Rating #2 Lowest Bonded Indebtedness #1 Lowest Water Rate #2 Lowest Sewer Rate #1 Lowest Refuse Rate #1 Lowest Stormwater Rate #3 Fewest Government #1 Employees (Federal, State, Local) Lowest Unemployment Rate #1

Good Times Getting Better

In 2005, Dubuque County reached 53,500 people working here, with a 2000 census population count of 57,686 in the City. The last time that has been described as good times in Dubuque was the late 1970s, when Dubuque had a population of 62,374 and Dubuque County had 43,700 people working. Current times dwarf those numbers – with a lower population.

Are these good times? Yes. But more importantly, these are good times and getting better. This is because of affirmative actions taken by the City to promote economic expansion and increase job opportunities.

Assistance to Low Income Residents

In addition to Dubuque’s record of remaining fiscally responsible to our citizens by providing excellent services for the tax dollar, Dubuque is a community of compassion for those with limited means. In addition to reducing the property tax rate by almost one- third since the 1980s and maintaining some of the lowest utility and user fees compared to the nine largest communities in Iowa, the City Council continues to look for ways to minimize the financial impact of taxes and fees for low-income residents. The following are a number of programs in which the city provides a reduced or free service to those most in need: • For refuse removal, a half-rate base refuse fee is available to households where the head of the household is 65 or older and the household income is low enough to qualify for HUD Section 8 housing subsidies. In addition, the City Manager is empowered to forgive part or all of the solid waste collection base fee to any household applying for and demonstrating extreme financial hardship; • The stormwater utility fee is reduced by 50% based upon age and income or family size and income; January 13, 2005 Page 13 of 23

• Bus fees are reduced to $0.50 and $1.00 for fixed route rides and $1.00 to minibus riders; • The Water Department provides financial assistance to low- and moderate­ income residents who are required to replace old service lines in the street right­ of-way due to street reconstruction projects and failure to their service lines. • The Engineering Department has a number of programs including a sidewalk assistance program based upon income level and the number of persons in the owner-occupied residence. The benefit can be from 75% for contractor­ performed repairs or 100% of construction cost for owner-performed repairs. A city policy requires that all homes be connected to the sanitary sewer system. To assist with this connection, the city limits the assessment amount that property owners have to pay for this connection to 15% of the value of the home. They also have a street assessment assistance program, a sanitary sewer assessment assistance program, a sanitary sewer lateral assessment assistance program and a sanitary sewer lateral assistance program (Infiltration and Inflow) program. In each of these programs, the City can pay from 20% to 100% of a street assessment for an eligible owner-occupied residence. • The Dubuque Fire Department Ambulance Service billing procedure waives the co-pay for Medicare-approved Ambulance Service for qualifying citizens. • The Planning Services Department may waive zoning and subdivision fees related to an affordable owner-occupied housing development when the developer has entered into a development agreement with the City. In addition, they have a Historic Preservation Homeowner Grant Program for persons who are income-qualified by the Housing and Community Development Department as low- to moderate-income households. The program provides a $2,000 to $5,000 grant per structure for exterior improvements. • The Housing and Community Development Department offers a number of programs including scholarships and stipends for low-income Dubuque citizens wishing to take any of our professional lead certification programs. Other programs include Operation Paint Brush where funding is provided at no charge for all exterior painting to help maintain and protect housing stock, Operation Upkeep provides grants and loans to improve the exterior appearance and conditions of their homes, Section 8 First-time Homebuyer Program permits eligible participants in the Section 8 Housing Choice Voucher Program the option of purchasing a home with their Section 8 assistance rather than renting, PATH (Pathways Affordable To Homeownership) provides forgivable loans for home purchase and rehabilitation and the Accessibility Rehabilitation Program provides forgivable loans to owners of rental properties for tenants needing unit modifications to accommodate physical disabilities. These are just a sampling of the many programs offered through the Housing and Community Development Department that reduce costs to low-income residents and help them realize the dream of affordable homeownership.

In addition to these very functional-type services, the city also offers affordable recreational opportunities and choices. The Recreation Division offers low-income programs such as free day camp at Four Mounds where youth can experience team-

-25- January 13, 2005 Page 14 of 23 building and the outdoors through hiking, canoeing and the ropes course. Also offered throughout the city are free "Playtime for Tots" Preschool sessions, free after-school programs at Audubon and Prescott School, free summer playground programs at 17 locations, half-price swim passes for qualifying individuals and families, reduced fees for Adult Summer Basketball League, scholarships for music courses and many youth recreation programs offered year-round. The Park Division offers a discounted $5 season pass into Eagle Point Park for qualifying residents. The Transit Division continues to offer "Free Way To Fun City" (free bus service) to anyone registered for a Leisure Service or Library activity.

Because of these programs, the City is able to provide choices and services at even more affordable rates for those most in need based upon their income.

Fiscal Year 2006 Budget Initiatives

This Fiscal Year 2006 budget recommendation is based on the City Council Vision, Goals, Priorities and Management Agenda established in September 2004.

A Dubuque 2020 vision statement was reaffirmed:

Dubuque is a city of history, beauty, opportunities and excitement: Masterpiece on the Mississippi.

The vision statement was approved to include:

"The City of Dubuque is a growing city with a strong, balanced economy and connections to the world. The Dubuque community takes pride in our history and heritage and has actively preserved our 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 providing services with citizens getting value for their tax dollars."

The City Council adopted five-year goals for the community: • Improved Connectivity: Transportation and Telecommunications • Planned and Managed Growth • Diverse, Strong Dubuque Economy • Riverfront Development • Partnering for a Better Dubuque

The City Council adopted a Policy Agenda 2004-2006 and developed 12 priority issues. These issues were divided into top and high priority:

-26- January 13, 2005 Page 15 of 23

Top Priority • Southwest Arterial - Funding for the arterial is once again the No.1 transportation priority for the City of Dubuque, Dubuque County, DMATS, the Dubuque Area Chamber of Commerce and Greater Dubuque Development Corp. • Opportunitylowa - This initiative involves a feasibility study about the creation of a communication utility for the City of Dubuque. • Stormwater: Bee Branch Creek Restoration • Street Improvement Programs - Continue to devote significant funding to resurface and reconstruct streets within the City. • Arts Policy and Funding - Finalize a policy decision.

High Priority • East-West Corridor Study - This study would examine the east-west transportation links within the city. • Air Service and Enplanement Strategy • National Pollution Discharge Elimination System (NPDES) • Annexation Study and Policy • Newly Annexed Areas: Plan, Zoning, Services • Property Maintenance Cases • Water & Sewer Services to New Developments

Also established was the Management Agenda for 2004-2006. These 12 issues represent short-term projects for the City Manager and City of Dubuque staff: • Mediacom Franchise Agreement • Zoning Ordinance: Update • Adams Company Relocation Completion • Collective Bargaining Negotiations • Incident Tracking System • Healthcare Cost Containment Strategy and Action • Federal Strategy • Dubuque Industrial Center West, Phase III • Gaming Agreement: Protect City's interests • Star Brewery Completion • Waterworks Park/Pyatigorsk Park • State Strategy

Increased revenues to the City, especially the new revenues from the Dubuque Racing Association Lease and the expansion at Dubuque Greyhound Park and Casino, will allow the City to fund most of the improvement packages requested for Fiscal Year 2006, subject to the approval of the City Council.

Added to the existing $35,000 allocated to Cultural Affairs, is a $200,000 recurring allocation.

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Change one part-time Assistant Planner position in the Planning Department to a full-time Assistant Planner to better serve the needs of the Historic Preservation Commission.

Change one part-time Emergency Communication Center dispatcher to full-time for better shift coverage.

Part-time intern position in the City Clerk's Office to assist with scanning City Council documents.

A full-time Geographic Information System (GIS) Coordinator to better utilize the City's multi-million dollar investment in the GIS system.

Creation of a Project Manager position in the Engineering Department to help manage major City construction projects.

Change one part-time Accountant in the Finance Department to full-time to assist with additional financial reporting requirements, track City leases and assist the Budget Director in the City Manager's Office with the annual budget preparation.

In the Human Rights Department, replace the part-time services of the City Solicitor and the services of a legal intern with the full-time services of a Human Relations Specialist to assist with investigations and handling complaints, freeing up some time for the Human Rights Director to do public education.

In the Legal Department, increase the part-time City Solicitor to full-time and add the part-time services of a Secretary.

At the Library, add a part-time Library Assistant in Circulation Services, increase the hours for Library Assistants in Adult Services, add a part-time Library Aide in the Children's area, and an intern to assist the Office Manager position.

Creation of a full-time Records Room Supervisor for the Police Department and a part-time Business Education student to work in records.

I was not able to recommend $50,000 in additional funding, over and above the $43,966 the City currently provides for Dubuque Main Street, Ltd., to hire an additional employee to implement the Downtown Master Plan. Currently Dubuque Main Street, Ltd. has three full-time employees equaling over 6,000 work hours a year. The Downtown Master Plan is at the heart of their mission, therefore, the Plan just provides a clearer road map for the Main Street, Ltd. Board and their staff on doing what they are already trying to accomplish. However, if the businesses in the Main Street District believe additional staffing is needed to accomplish the mission of the organization, a mechanism for those businesses in the District to contribute to funding that position could be developed.

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Property owners can agree to tax themselves through a property tax surcharge called a Self-Supporting Municipal Improvement District (SMID). If that was implemented, the City could agree to contribute based on the value of City-owned property in the District.

In the area ofemployee training, a Customer Service Training program ($9,000) and a Diversity Training program ($7,500) is recommended.

A one-time Broad-Based Marketing plan ($23,300) is recommended to increase awareness of diversity issues in the community.

Previous expenditures that were cut in the Library budget are recommended for restoration, including $35,939 in adult materials and $2,547 for adult programs.

In the area of technology, included is wireless Internet access for Library patrons ($1,800), Internet registration software ($3,000) at Leisure Services and a point of sale system at Bunker Hill Golf Course.

To enhance the Public Information function of the City, the reinstatement of the quarterly City Focus newsletter, with one edition being an annual report, is recommended.

There is a continued emphasis on the Street Program, with a planned Fiscal Year 2006 expenditure of $9,178,415. This increases the average annual expenditure from the Fiscal Year 2005 calculation of $7,274,623 to the Fiscal Year 2006 calculation of $7,520,043. This far exceeds the 1990-1994 historic annual average of $2,100,000.

Capital funds are recommended to expand Dubuque Industrial West, continue work at the Southwest Arterial, provide utility service to annexed areas, implement the Drainage Basin Master Plan and complete the projects required under the Vision Iowa grant.

The City has strengthened its position on property maintenance, as evidenced by City Council action last year to force maintenance of the vacant property on Burch Street. The City also has a long history of participating in Neighborhood Reinvestment with the DREAMS Program, where vacant homes were acquired, rehabilitated and sold to low income residents.

The Housing and Community Development Department administers a number of state­ and federally-funded programs to encourage housing investment, city-wide. Eligibility for all programs is tied to income limits. These include the First Time Homebuyer Program, offering $5,000 low- or no-interest down payment loans to low- and moderate­ income buyers. Rehabilitation assistance programs are also available, offering up to $25,000 to homeowners, as 3% interest, 20-year loans for a variety of home improvement activities.

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The Department recently received another Federal Home Loan Bank award, of $100,000, to provide $4,000 down payment grants to lowest-income (below 60%) first­ time homebuyers.

The Lead Paint Hazard Reduction Program offered through the Housing Department offers $6,000/unit grants to homeowners and landlords to remove lead paint from their properties.

CDBG and HOME Program funds are utilized for rehabilitation assistance to landlords, with up to $20,000/unit available as 3%, 20-year loans.

Beginning in 2003, a program of concentrated assistance to the "Five Points" area was initiated, using a combination of HOME, CDBG, HUD Special Purpose Grant and Lead Program funds totaling approximately $500,000. A square-block area bounded by 20th and 21 st Streets, Elm Street and Washington Street was selected for an intensive rehabilitation effort.

There is a concern that the Washington/Five Points neighborhood area is showing indications of a decline in appearance and maintenance. This is substantiated by depressed property assessed valuations and high vacancy rates.

Staff has developed a preliminary proposal for a program of concentrated activities to encourage more owner investment and housing rehabilitation in the downtown. In particular, the Washington Street Neighborhood is identified as the logical focus of this effort.

The proposed program of $100,000 per year will offer low-interest down payment loans to households at 80% t01 00% of median income, as an incentive to purchase and improve homeowner properties in sections of Census Tracts 1 and 5. Fiscal Year 2006 will initiate a Washington Neighborhood revitalization strategy. This will help to facilitate a mixed income neighborhood with a greater percentage of owner-occupied homes.

Community Issues

Retail

We are all excited about the addition of Best Buy, Borders, Kohl's and other retail establishments in Dubuque, but the growth in retail sales for 2004 was an anemic 3.5%, or less than % of 1% after adjusting for inflation.

Our economy has never been better, so it is not that these retail dollars are not being spent. It is fair to conclude that these retail dollars are just being spent somewhere else, like Coralville, Davenport and Madison. Pull factor is an indicator of whether people are coming to Dubuque to shop or whether Dubuquers are going elsewhere to shop. If the number is over 1.00, people are traveling to Dubuque to shop, if the number is less than 1.00, Dubuquers are traveling elsewhere to shop. The pull factor

-30- January 13, 2005 Page 19 of 23 for Dubuque County in 2004 is 1.12, which at face value is good news. However, the pull factor for Dubuque in 2000 was 1.10, so there has been almost no increase. The City should be working to create new shopping opportunities to increase the pull factor.

Comparing Dubuque County with other urban counties in the State of Iowa shows that Dubuque has a problem that needs to be addressed.

County Pull Factor

Polk (Des MoineslWest Des Moines) 1.57 Linn (Cedar Rapids) 1.46 Scott (Davenport) 1.39 Johnson (Iowa City/Coralville) 1.27 Cerro Gordo (Mason City) 1.26 Black Hawk (Waterloo) 1.15 Webster (Fort Dodge) 1.14 Woodbury (Sioux City) 1.14 Dubuque (Dubuque) 1.12 Story (Ames) 0.92 Clinton (Clinton) 0.79

Average (Excluding Dubuque) 1.21

Dubuque County has the third lowest pull factor. The County with the highest pull factor (Des Moines) at 1.57 is 40% higher than Dubuque and the average of these other cities (1.21) is 8% higher than Dubuque County.

The State of Iowa breaks up retail sales into nine categories. The largest category is general merchandise (19% of all retail sales in Dubuque). Dubuque actually saw a 2.8% decrease in general merchandise sales in constant dollars (dollars adjusted for inflation)when comparing 2004 with 2003. Another category, wholesale items (8% of all retail sales in Dubuque) was down a whopping 7.9% in constant dollars.

Looking at "constant dollars," the County has had basically no growth in retail sales in 24 years. Retail sales in Dubuque County in 1980 were $991,000,000. Retail Sales in Dubuque County in 2004 were $993,000,000. In fact, since 2000, there has actually been a decrease in retail sales in constant dollars from $994,000,000 down to $993,000,000.

Putting together these dismal retail sales numbers, vacant storefronts downtown and the lack of interest in development in the Port of Dubuque, has led to a discussion with Dubuque Initiatives about a partnership to encourage retail development downtown, in the Port of Dubuque, and across the City. The ultimate goal of this initiative is to help local retailers grow, attract new retailers, and work with the local real estate and development community to create opportunities to expand retail sales in Dubuque.

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Retail businesses create sales tax for the state, county, city and Dubuque Community School District. Commercial properties also pay property tax at 100% of assessed value, which helps the county, city, community college and schools. Shopping is the #1 entertainment choice nationally and ,adds to the quality of life in a community, helping with a local critical need, workforce development. I am recommending that the City budget $35,000 towards this partnership with Dubuque Initiatives, who would be contributing $70,000.

Population

While we certainly believe it to be otherwise, the latest estimates from the U.S. Census Bureau say Dubuque has lost population since the 2000 census. The Census Bureau estimates the City has lost 491 people, or almost 1% of the population. Even optimistic estimates from DMATS would show Dubuque adding only about 3,800 people.

Population in Dubuque since 1950

1950 1960 1970 1980 1990 2000 July 1,2003 Census Estimate 49,671 56,606 62,309 62,374 57,538 57,686 57,204

Enplanements

While there are many bright spots at the airport, especially the addition of a fourth flight by American Airlines, the enplanement numbers are not encouraging.

Enplanements in 2004 were 39,002. Enplanements in 2000 were 58,326, 49.5% higher than 2004. In this interim the September 11,2001, terrorist attack on the East Coast occurred and United Airlines and Northwest Airlines discontinued service at the airport.

On a positive note, 2004 was the first year of an increase in enplanements (1.04%) after three consecutive years of declines. A $20,000 increase in City funds for marketing and a major commitment to a new airport terminal are recommended for the Airport, with additional resources for local funds yet to be identified.

Workforce

Dubuque's business community has never been stronger. Employment has risen dramatically over the last 20 years-from 39,700 employed workers in 1984 to a current record level of 53,500. During the past year, the majority of our City's industries have either maintained payrolls or added jobs-a trend that many of them expect to continue.

However, indicators show that although Dubuque's workforce has kept pace with two decades of growth, future expansion could hit a wall. Workforce availability is rapidly becoming the primary concern of our City's major employers. Dubuque's unemployment

-32- January 13, 2005 Page 21 of 23 rate is the lowest in the State of Iowa. The 2004 Laborshed Analysis discovered that to meet the needs of this expanding industry, more employees are driving longer distances to fill positions. In addition to a labor deficit resulting from growth, Dubuque's high concentration of an aging population will exacerbate the problem over the next few years. Dubuque has the highest percentage of persons age 65 and older in the State of Iowa. As these employees retire, there must be someone to take their place. Dubuque also has the lowest percentage of population under the age of 18 than any other metro in Iowa.

This is not a situation unique to Dubuque-in fact, the entire state faces the same issues. Iowa itself has one of the nation's oldest populations and ranks last in population growth over the last 100 years. Several statewide initiatives have been started to reverse this trend. But to meet the needs of our local business community, Dubuque must find its own method of retaining and recruiting talent. We must demonstrate available opportunity through a strategy supported by the entire community to assure our employers that they will continue to have access to the high-quality workforce they have come to expect.

Southwest Arterial

The completion of Iowa 32 with the construction of the Southwest Arterial is imperative to the future of Dubuque. This has been selected as the #1 transportation priority for the City of Dubuque, the Dubuque Area Chamber of Commerce, the Greater Dubuque Development Corporation, Dubuque County and the Dubuque Metropolitan Area Transportation Study.

Much hard work needs to be done to get the necessary federal and state funding commitments.

Other Metropolitan Areas in Iowa

Dubuque has lower taxes, lower fees and less debt, while having low unemployment and a growing award-winning economy. Dubuque has significant assets to build on, and some might say it has things other communities do not have, like gaming, but other towns have significant assets that Dubuque does not have.

Des Moines is the State Capitol, is on Interstate 80 and Interstate 35.

Ames has Iowa State University and is on Interstate 35.

Council Bluffs is on Interstate 80, has Omaha in their backyard and has gaming.

Iowa City has the University of Iowa, University of Iowa Hospital and is on Interstate 80.

Waterloo/Cedar Falls has the University of Northern Iowa, is on the Avenue of the Saints and Highway 20.

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Davenport is part of the Quad Cities, is on Interstate 80 and Interstate 74 and has gaming.

Cedar Rapids has Rockwell Collins, is on the Avenue of the Saints, is closely connected to Interstate 80, and is between the University of Iowa and the University of Northern Iowa.

One other very important factor that insulates the economies of these other communities is their percentage of government employees (federal, state and local government employees) in their workforce. Normally, recessions have much less of an impact on communities with a high percentage of government employees.

The Dubuque area has the lowest percentage of government employees of any metropolitan areas in the state and is less than half ofthe state average, according to the June 2003 Workforce Development statistics.

Government Employees Total Employees % of Government

Story County (Ames) 18,200 43,590 42% Iowa City Area 26,800 74,100 36% Waterloo-Cedar Falls 10,700 71,900 15% Pottawattamie County 5,350 35,490 15% (Council Bluffs) Clinton County (Clinton) 2,940 22,750 13% Cerro Gordo County 3,490 27,750 13% (Mason City) Des Moines Area 37,000 291,000 13% Sioux City Area 7,700 64,700 12% Cedar Rapids Area 12,700 119,000 11% Dubuque area 4,200 50,700 8% State of Iowa 245,200 1,446,300 17%

Conclusion

Dubuque is a wonderful place with tremendous potential. I know that there are many reasons for Dubuque's success, but the most important ones involve the caring and hard-working citizens of Dubuque and you, exercising leadership, being innovative and developing partnerships.

The president of a successful company was asked what it took to get to the top. "The same thing it took to get started," he replied. "A sense of urgency about getting things done." The City Council seems to share this sense of urgency, leading to many successes and certainly creating the opposite situation described in the 1983 Chamber publication which said, "Dubuque's plight is becoming desperate."

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Again, 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 Commissions. I would like to thank Budget Director Dawn Lang, along with Office Manager Juanita Hilkin and Secretary Kevin Firnstahl for putting together the budget, with the assistance of Assistant City Manager Cindy Steinhauser, Intern Jenny Griffin, and former Administrative Services Manager Pauline Joyce. Corporation Counsel Barry Lindahl and City Clerk Jeanne Schneider continue to provide their expertise and assistance throughout the budget process.

I would like to say how much I appreciate the courageous and entrepreneurial leadership of the Mayor and City Council. 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

-35- Attachment I City of Dubuque Awards As of October 2004

Name Institution Recognition Year Dept/Location Preserve America Mrs. Laura Bush and Historic preservation 2004 Planning federal Qovernment Project of the Year National Masonry Institution/Government Building - Grand 2004 CMO River Center Masonry Construction Achievement in Economic International Downtown America's River 2004 CMO Development Association All-Star Community Award Iowa League of Cities America's River Project 2004 CMO Main St. Award Main St. Iowa Best New Development/Construction 2004 Grand River Center and Grand Harbor Resort Addy Award Advertising Club of Grand River Center Logo 2003 @GRC Dubuque I ~ Airport Safety Enhancement US Department of Outstanding compliance with Title 14 CFR 2003 Airport I Award Transportation FAA Part 139 Central Region America's Crown American City & County Crown Community 2003 CMO Communities Best Total Building Dubuque Main St. Ltd. Five Flags Theater 2003 Five Flags Rehabilitation Environmental Certificate Participation in shredding and recycling 2003 Housing & program and saving 23 trees from Community destruction Development Excellence in Communication Dubuque Area Labor- Interest-Based Bargaining Committee 2003 City of Dubuque and Management Council Professional FirefiQhters Excellence in Concrete Iowa Ready-Mixed Mississippi River Walk Phase II 2003 Concrete Association Family Self Sufficiency US HUD/Region 7 Implementation of FSS Program Resulting 2003 Housing & Program Success Kansas City Office of in High Enrollment Community Public Housing Development Name Institution Recognition Year Dept/Location Honorable Mention International Economic America's River Partnership 2003 Partnership Award Development Council Housing Choice Voucher US HUD/Region 7 Outstanding efforts in the implementation 2003 Housing & Home Ownership Program Kansas City Office of of home ownership Community Success Public Housing Development Ken Kringle Historic Historic Preservation Five Flags Theatre - Excellence in 2003 Preservation Award Commission rehabilitating an historic structure Public Library Accreditation State Library of Iowa Standards of Accreditation 2003 Carnegie-Stout Public Library Tree City USA National Arbor Day Annually since 1989 2003 Parks/roadway Foundation signage CAEFR Report Government Finance Certificate of Achievement for Excellence 2002 Finance/Budget Officers Association in Financial Reporting 15 consecutive years. Iowa APA Port of Dubuque Master Plan 2002 Planning Superior Levee Maintenance Corps of Engineers - City of Dubuque Flood Protection Program 2002 Ops & Maintenance ~ Award US Army I~ Outstanding Beautification Dubuque Main S1. 17m Flat Iron Park 2001- Parks Office Project (Landscaping) Anniversary Award 2002 Innovative Approach to US DOT Federal Transit Innovative Approach to Addressing Public 2001 Transit, Certificate of Addressing Public Administration Region Transportation Services Appreciation, Mark Transportation Services VII Munson President's Service Award Iowa Chapter of the Janet Walker - outstanding effort and 2001 Housing & NAHRO achievement in the promotion and success Community of Iowa NAHRO Development Airport Safety Enhancement US Department of Outstanding compliance with Title 14 CFR 2000 Airport Award Transportation FAA Part 139 Central ReQion Best Public Education Iowa Recycling Iowa Recycling Award 2000 City of Dubuque and CampaiQn AQencies/DNR Jefferson Jr. Hiqh Certification of Investment Municipal Treasurers The investment policy submitted for review 2000 Finance Policy Association of the U.S. meets the standards. First City in Iowa to and Canada. receive the award 1/18/95. Excellence in Communication Dubuque Area Labor- Solid Waste Disposal Team 2000 City of Dubuque and ManaQement Council Teamsters Local 421 Name Institution Recognition Year Dept/Location National Award of Merit in National Association of Affirmative Customer Services 2000 Housing & Administrative Innovation Housing and Community Redevelopment Officials Development Public Policy Change US HUD Local Best Practice Winner 2000 Housing & Process Community Development Special Recognition in Waste Governor's Iowa City of Dubuque Recycling Program 2000 Ops & Maintenance Management Environmental Excellence Award Handshake Award of Central Alternative High 1999- Housing & Appreciation School 2000 Community Development FTA Region 7 Y2K US DOT Federal Transit Second City to Reach Y2K Compliance 1999 Transit Compliance Award Administration Requirements National Significance and Iowa Chapter American Eagle Point Park 1999 Parks Office Contribution to the Quality of Society of Landscape ~~ Live in Iowa Architects Cf Prism Award Iowa Committee on Efforts to promote diversity in the 1999 @Library Diversity community Excellence in Trust Dubuque Area Labor- Health Care Committee 1998 City and Union Management Council partnerships All-Star Community Award Iowa League Cities Dispute Resolution Center 1997 Human Rights Excellence in Programming Iowa Park and Therapeutic Recreation Programs 1997 Recreation Office Recreation Association International Water Tasting & Winter Festival Of 1st Place Toast to the Tap 1997 Municipal Division Competition Waters Excellence in Health Care Dubuque Area Labor- Health Care Committee 1996 City and Union Management Council partnerships School Business Partnership Prescott Early Working together to nurture each other's 1996 CMO Childhood Center growth. Fair Housing Assistance U.S Dept. of HUD Outstanding performance in the fair 1995 DHRC Office housing assistance program All-Star Community Award Iowa League of Cities Developers Roundtable 1994 (Iowa League of Municipalities) Name Institution Recognition Year Dept/Location All-Star Community Award Iowa League of Cities Prescription Drug Program 1994 Personnel (Iowa League of Municipalities) Excellence in Collaboration Dubuque Area Labor- Health Insurance Task Force 1994 City and Union Management Council partnerships Community Water Centers for Disease For contributions made on behalf of N/A 50 Year Award - Fluoridation Control and Prevention community water fluoridation. Water Dept.

c.vI co I MICHAEL C. VAN MILLIGEN • Dubuque City Manager

Guiding Pri nciples of the Ma nagement Phil osophy

INPUT-ORIENTED • Team members should take advantage of the valuable input that can be provided by citizens and employees for departmental decision-making.

THEMES FOR EFFECTIVE USE OF THE GUIDING PRINCIPLES

• Believe that others can provide valuable input • Understand the benefits ·of empowering others • Understand the benefits of receiving input from • Seek first to understand and then to be others understood - Steven Covey • Develop the processes that capitalize on the • Motivate staff and encourage employee initiative input of others • Delegate tasks to maximize the use of • Adopt an open door policy which invites input available resources from others

PROBLEM SOLVERS • Team members' approach to issues should be to focus on what can be done to solve the problem.

THEMES FOR EFFECTIVE USE OF THE GUIDING PRINCIPLES

• Create programs that help others be more • Encourage risk-taking creative in solving problems • Practice flexibility • Perceive problems as opportunities • Understand that bureaucracies function best in • Avoid the use of policies to get out of having black and white issues while most issues are to solve the problem varying shades of gray • Look to others to help solve problems

DEVELOP PARTNERSHIPS • Team members can be more effective by developing partnerships w,ith other departments and outside organizations.

THEMES FOR EFFECTIVE USE OF THE GUIDING PRINCIPLES

• Form teams around defined tasks • Develop team processes for decision making • Encourage employee involvement through and setting goals and objectives problem-solving task forces • Facilitate the group process

-40- CITY OF DUBUQUE COSTS OF MUNICIPAL SERVICES INCREASE FOR AVERAGE HOME'S CITY UTILITY AND PROPERTY TAX EXPENSE FY 1989-2006 MONTHLY CHANGE IN STORM RESIDENTIAL ANNUAL COST REFUSE WATER PROPERTY OF MUNICIPAL FISCAL YEAR WATER SEWER MONTHLY RATE % INCR/(DECR) FEE TAX SERVICES

FY 1989 3.00% 0.00% $4.00 6.67% -11.40%

FY 1990 3.00% 3.00% $4.50 12.50% -0.90%

FY 1991 2.00% 2.00% $6.00 33.33% 3.80%

FY 1992 3.00% 3.00% $7.00 16.67% 3.60%

FY 1993 0.00% 0.00% $9.00 28.57% 5.20%

FY 1994 0.00% 0.00% $9.00 0.00% 0.30% $1.51

FY 1995 0.00% 0.00% $8.50 -5.56% 2.43% $6.41

FY 1996 3.00% 0.00% $7.50 -11.76% -0.87% ($12.69)

FY 1997 0.00% 0.00% $7.25 -3.33% -0.42% ($5.19)

FY 1998 0.00% 0.00% $7.00 -3.45% -0.71% ($6.66)

FY 1999 4.00% 0.00% $7.00 0.00% 0.00% $5.30

I FY 2000 1.00% 0.00% $7.00 0.00% -0.17% $0.51 .j::o...... I FY 2001 3.00% 0.00% $7.44 6.29% 0.00% $9.46

FY 2002 0.00% 4.00% $7.50 0.81% 0.00% $6.52

FY 2003 (July and August) $8.20 Pre UBP System FY 2003 2.00% 1.00% $7.20 -4.00% -5.00% ($22.15)

FY 2004 4.68% 3.00% $7.60 5.56% 1.29 0.00% $37.62

FY 2005 3.00% 4.00% $8.51 11.97% 1.29 0.00% $22.82 PROJECTION FY 2006 4.00% 5.50% $8.70 2.23% 1.79 0.00% $23.65

FY 2007 4.00% 6.00% $8.85 1.72% 2.00 -0.76% $17.55

FY 2008 3.00% 6.00% $9.05 2.26% 2.25 4.02% $41.22

FY 2009 3.00% 6.00% $9.25 2.21% 2.50 3.91% $42.26

FY2010 3.00% 4.00% $9.40 1.62% 2.75 3.69% $38.04 AVERAGE ANNUAL PERCENT CHANGE 2.32% 2.26% 4.97% 0.32%

NOTES REGARDING PROJECTIONS: 1. The projections do not include any anticipated tax burden shifts as a result of state issued equalization orders or rollback factors. 2. The projections for the cost of municipal services are based on average water usage of 800 cubic feet per month and an assessed value on the home in FY 2002 of $93,081 (before rollback). 3. The Mayor, City Council and staff have committed to a 5 year review of all City services for efficiencies and alternatives. It is anticipated that these annual cost figures will be decreased during this review process. 4. The storm water fee is based on an average residential lot and the fee going into effect 7-1-03.WiII go to $1.79/month if DRA tax case lost. STREET CONSTRUCTION RELATED IMPROVEMENTS· OVERVIEW

STREET CONSTRUCTION: Fiscal Year 2006 Engineering/Public Works: Annual Street Construction Program $ 4,095,770 1

Operations & Maintenance: Street Maintenance & Overlays Program $ 2,565,497

Economic Development: Street Related Improvement Projects $ 2,517,148 2

TOTAL· STREET CONSTUCTION IMPROVEMENTS $ 9,178,415

ANNUAL AVERAGE 1995 - 2010 Average Engineering/Public Works: Fiscal Year 1995 - (Annual Average] $ 5,485,556

Operations &Maintenance: Fiscal Year 1995 -(Annual Average] $ 2,034,487

TOTAL·AVERAGE ANNUAL·STREET IMPROVEMENTS $ 7,520,043

HISTORICAL AVERAGE 1990 - 1994 Average Engineering/Public Works & Operations & Maintenance Historical Five-Year Average - Street Improvements $ 2,100,000

1. Budget number does not include Iowa Highway 32 (SW Arterial), Traffic Signalization Improvements, Fiber Optic Improvements, Sidewalk or Miscellaneous Improvements.

2. Budget number for Chavenelle Road Extension - Construction Only. Dubuque Industrial Center West 3rd Addition total estimated cost is $7,720,000 - including mass grading, utilities and paving.

-42- FISCAL YEAR 2006 RECOMMENDED BUDGET

The recommended budget for Fiscal Year 2006 totals $115,718,896 including operating, capital improvement and debt service requirements but excluding transfers of $33,095,372. The recommended budget is $19,964,892 (20.85 percent) more than the adopted Fiscal Year 2005 budget of $95,754,004. This represents:

a) An increase in the operating bUdget of $6,037,358 (9.12 percent) from $66,181,059 in Fiscal Year 2005 to $72,218,417 recommended for Fiscal Year 2006, and

b) An increase in the Capital Improvement Program budget of $13,927,532 (47.10 percent) from $29,572,947 to $43,500,479. The capital improvement amount for Fiscal Year 2006 includes $7,176,000 of proposed Dubuque Industrial Center West TIF backed bonds, $2,900,000 of proposed Stormwater GO bonds, and $1,100,000 of proposed Parking GO bonds.

The increase in the operating budget of $6,037,358 reflects an estimated wage package (since no settlement has been reached with the bargaining units); a 9% increase in health insurance costs; an increase of 13.2% in Police and Fire Retirement rates (from 24.92% to 28.21 %, over $300,000); increased costs of supplies and services, including such items as software contract, data processing maintenance contracts, property maintenance, utility expense and insurance; greater funding of improvement packages; and an increase in debt service payments relating to the proposed GO bond issues of over $1,100,000.

OPERATING CAPITAL PROGRAM BUDGET IMPROVEMENTS TOTAL

Public Safety $19,347,955 $ 243,500 $19,591,455 Public Works 14,790,899 23,678,054 38,468,953 Health and Social Services 761,893 761,893 Culture and Recreation 7,850,198 5,059,310° 12,909,508 Community and Economic Dev!. 10,967,686 9,429,800 20,397,486 General Government 4,971,914 1,159,370 6,131,284 Business Type 12.166,268 3,930,445 16,096,713

TOTAL NET BUDGET $72,218,417 $43,500,479 $115,718,896

I The recommended Fiscal Year 2006 budget requires $16,172,986 in property taxes in all funds and a property tax rate of $9.6991 per $1,000 of assessed value on an estimated $1 ,667,481,230 of taxable property value. This is $199,749 (1.22 percent) less than the $16,372,735 property tax amount approved for Fiscal Year 2005 and a tax rate decrease of $.3729 (3.70 percent) from Fiscal Year 2005. This will make the 11 th consecutive year of no increases in the "City" portion of property taxes for the average residential homeowner; with 6 of those years actually providing decreases in the City portion of their tax bill. -43- IMPACT OF RECOMMENDED BUDGET ON CLASSES OF PROPERTY

The impact of the adopted Fiscal Year 2006 budget on residential, commercial and industrial property can be summarized as follows:

RESIDENTIAL

FISCAL YEAR 2005

January 1, 2003 Valuation $101,458 Equalization Order +8% January 1, 2003 Valuation after Equalization Order $109,575 Less Rollback Factor 0.48456 Fiscal Year 2005 Taxable Value $53,095 Fiscal Year 2005 City Tax Rate $10.0720 Fiscal Year 2005 City Property Tax $534.78 Homestead Tax Credit ($48.85) Homestead Tax Credit Adjustment - 81% funded by State $7.32 Net Fiscal Year 2005 City Property Tax $493.25

FISCAL YEAR 2006

* January 1, 2004 Valuation $116,149 Less Rollback Factor 0.4796 Fiscal Year 2006 Taxable Value $55,705 Fiscal Year 2006 City Tax Rate $9.6991 Fiscal Year 2006 City Property Tax $540.29 Homestead Tax Credit ($47.04) Net Fiscal Year 2006 City Property Tax $493.25

Dollar Increase in Property Tax $0.00 Percent Increase in Property Tax 0.00%

*The FY 2006 property tax calculation takes into account the 6% valuation increase for the average residential homeowner as determined by the reappraised valuations.

-44- IMPACT OF RECOMMENDED BUDGET ON CLASSES OF PROPERTY

COMMERCIAL

FISCAL YEAR 2005

January 1,2003 Valuation $319,129 Equalization Order +5% January 1, 2003 Valuation after Equalization Order $335,085 Less Rollback Factor 0.99257 Fiscal Year 2005 Taxable Valuation $332,595 Fiscal Year 2005 City Tax Rate $10.0720 Fiscal Year 2005 City Property Tax $3,350

FISCAL YEAR 2006

* January 1,2004 Valuation $326,038 Fiscal Year 2006 City Tax Rate $9.6991 Fiscal Year 2006 City Property Tax $3,162

Dollar Increase in Property Tax ($187.63) Percent Increase in Property Tax -5.60%

*The FY 2006 property tax calculation takes into account the 2.7% valuation decrease for commercial property as determined by the reappraised valuations.

INDUSTRIAL

FISCAL YEAR 2005

January 1,2003 Valuation $500,000 Fiscal Year 2005 Tax Rate $10.0720 Fiscal Year 2005 City Property Tax $5,036

FISCAL YEAR 2006

* January 1, 2004 Valuation $597,000 Fiscal Year 2006 City Tax Rate $9.6991 Fiscal Year 2006 City Property Tax $5,790

Dollar Decrease in Property Tax $754.36 Percent Decrease in Property Tax 14.98%

*The FY 2006 property tax calculation takes into account the 19.4% valuation increase for industrial property as determined by the reappraised valuations.

-45- FISCAL YEAR 2006 BUDGET PREPARATION GUIDELINES

The property tax guideline amount approved by the City Council on December 6, 2004, as part of the policy guidelines for preparing the Fiscal Year 2006 budget, totaled $16,019,435 (2.16 percent less than Fiscal Year 2005). The tax asking recommendation is $16,172,986 (1.22% less than Fiscal Year 2005 tax asking). The tax asking increased from the projected property tax guideline due to valuation growth, thereby allowing for approval of Council priorities.

In addition to addressing total tax asking, the property tax guideline established by City Council was expressed in. terms of no dollar impact on the average home. Property reappraisals were completed by the Dubuque City Assessor's office and went into affect January 1, 2004. The FY 2006 assessed valuation for the City of Dubuque is based on the reappraised valuations. Residential property valuations increased 6 percent, Commercial property valuations decreased 2.7 percent and Industrial property valuations increased 19.4 percent. The average home value was increased 6 percent when determining the FY 2006 property tax rate, reflecting no property tax increase for the average homeowner.

The Fiscal Year 2006 City portion of the tax rate is being decreased by $.3729 (3.70 percent) from the Fiscal Year 2005 rate of $10.072 to a tax rate df $9.6991 per $1 ,000 of taxable assessed valuation. The budget recommendation meets the residential guideline by providing no change in the "City" portion of property taxes on the average residential home.

Changes that occurred after the Fiscal Year 2006 guidelines were presented and adopted by City Council on December 6, 2004 include the following changes:

• ORA expanded gaming was projected to begin August 1, 2005, but will now begin June 4,2005. This, along with a revision to the lease calculation added an additional $384,981 of projected gaming revenue in FY 2006. The use of gaming revenue in the Guidelines, split between operating (65%) and capital (35%), was revised to be 62.72% operating and 37.28% capital.

• Community Development Block Grant funding was decreased from the Federal Government by $82,000, requiring a shift of $14,000 of employee expense from CDSG to the General Fund in order for the City to stay under the allowable administrative cap.

This budget provides for no increase in the "City" share of property taxes for the average homeowner in Fiscal Year 2006, and reduces the property tax rate by 3.7%.

-46- FISCAL YEAR 2006 RECOMMENDED BUDGET SUMMARY OF RECOMMENDED DECISION PACKAGES

Their Were 120 improvement level decision packages requested for fiscal Year 2006 (compared to 84 in Fiscal Year 2005). Of the 120 decision packages, 10 were not recommended.

Out of the 110 recommended:

>- Some either totally or partially represent the use of recurring General Fund balances totaling $683,187 (net revenue).

>- Some either totally or partially represent the use of non-recurring General Fund balances totaling $1,192,047 (net revenue).

>- The remaining are funded by non-property tax funds, including Road Use Tax, CDBG, UDAG, Dubuque Industrial Center West TIF, Lead Fund, Section 8, Cable TV, and Enterprise Funds totaling $231,845. Recurring decision packages total $107,319 and non-recurring total $124,526.

-47- SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006 ADDL ADDL NET TAX DEPT DESCRIPTION R1N EXPENSE REVENUE IMPACT

RECURRING DECISION PACKAGE COSTS GENERAL FUND

Airport Department Marketing Funds for promoting the Airport for commercial and corporate usage R 20,000 0 20,000

Building Services Restores cleaning service to City Hall from 3 to 5 days per week & R 10,000 0 10,000 restores window, carpet, and floor cleaning service to original level.

Cable TV Division Restores cleaning service to City Hall Annex from 3 to 5 days per week R 1,785 0 1,785

City Clerk's Office Additional Laserfiche licenses-City Wide R 10,000 0 10,000

City Clerk's Office Add Part time intern to assist with scanning City Council documents R 3,874 0 3,874

C~ity Manager's Office-Public Infc Reinstate City Focus to original format - full color, more pages, mailed quarterly R 25,000 0 25,000 with one being an "annual report" insert in the Telegraph Herald

City Manager's Office-Public Infc Graphic arts service to use on an as needed basis R 25,000 0 25,000

City Manager's Office-Public Infc Adds GIS Coordinator position for quality control/central management R 61,378 0 61,378

City Manager's Office Increase CMO student intern hours from 436 to 520 (10 hours/week year round) R 712 0 712

City Manager's Office Dale Carnegie Training for 2 Department Manager's per year R 2,600 0 2,600

City Manager's Office Refreshments at monthly Management Team meetings R 900 0 900

City Manager's Office Retired Admin. Services Manager consultant services to assist with Budget R 4,500 0 4,500

City Manager's Office Customer Service Training Program ($45,000 - $9,000/yr for 5 years) R 9,000 0 9,000

R = Recurring /N = Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006 ADDL ADDL NET TAX DEPT DESCRIPTION R/N EXPENSE REVENUE IMPACT City Council Arts and Cultural Affairs Annual Grant Program R 200,000 0 200,000

Economic Development Retired Economic Development Director consultant services to assist with grant R 5,000 0 5,000 monitoring and applications

Emergency Communication Part Time Dispatcher vacancy to Full Time (County pays 1/3) R 33,052 11,017 22,035

Engineering Department Add Project Manager position to manage City capital improvement projects R 17,478 0 17,478

Engineering Department AutoCAD training to expedite the transition when updating R 1,300 0 1,300

Engineering Department ArcGIS level training to keep updated on technology changes and updates R 1,700 0 1,700 (for Engineering Assistant I to attend) c: ~ngineering Department Increase excavation fees in public right-of-ways ($15 to $50) R a 2,500 (2,500)

Finance Department Part Time Accountant to Full Time Financial Analyst to assist with additional R 27,702 0 27,702 reporting requirements, City lease tracking and 1/3 time to budget office

Finance Department Add courier service to pick up City Hall mail at the main Post Office R 2,500 0 2,500

Finance Department Consulting services relative to risk management issues R 5,000 0 5,000

Fire Department Annual cost for support of laptop computers in medic units w/software R 3,000 0 3,000 (Paperless communication results in postage & copy cost savings) (1,334) 0 (1,334)

Human Rights Replace the part-time services of the City Solicitor & services of the R 18,376 0 18,376 seasonal legal intern with full-time services of a Human Relations Specialist (15,047) 0 (15,047) (FY'06 cost reflects 1/3 of year - annual wage package recomm. $55,127 with cost offset by 2 less positions and $5,000 in HUD revenue applied to wages -$34,926 = net annual cost of $20,201)

R =Recurring /N =Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006 ADDL ADDL NET TAX DEPT DESCRIPTION R/N EXPENSE REVENUE IMPACT Human Rights Diversity Traning for employees ($22,500 - $7,500/yr for 3 years) R 7,500 0 7,500

\

Legal Department Create a part-time (30 hours) Secretarial position for the full-time Asst City Attorne~ R 6,940 0 6,940 (FY'06 cost reflects 1/3 of year - annual wage pkg recommended $20,801)

Library Department Restores adult materials cut from budget in FY 2004 R 35,939 0 35,939

Library Department Restores programming for adult programs cut from budget in FY 2004 R 2,547 0 2,547

Library Department Adds a part time Library Assistant in circulation services R 14,589 0 14,589

Library Department Promote Library Assistant in Children's Services to Library Aide R 4,372 0 4,372

Library Department Increase hours for student assistants - Adult & Children's Services R 14,015 0 14,015 ~~ Library Department Adds part-time Library Aide in Children's area - 25 hours/ week R 24,161 0 24,161

Library Department Adds part-time intern in the Administrative Office to provide secretarial support R 8,822 0 8,822

Library Department Wireless internet access for patrons (internet access fee revenue in) R 1,800 300 1,500

Library Department Volunteer Recruitment & Recognition (Parking, newsletter, dinner) R 1,800 0 1,800

Park Division Supplies for the Maintenance at the Port of Dubuque (turf, trees, fuel, etc) R 6,161 0 6,161

Planning Department Increase Assistant Planner from PT to FT Assistant Planner to support R 35,022 0 35,022 Rehab, Historic Preservation, and City Planning activities.

Police Department Add FT Records Room Supervisor (1/3 reimbursed by Sheriff's Dept.) R 48,605 16,202 32,403

Police Department Upgrade 1 Corporal position to a Patrol Lieutenant R 8,869 0 8,869

R = Recurring / N = Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006 ADDL ADDL NET TAX DEPT DESCRIPTION RlN EXPENSE REVENUE IMPACT Police Department Add business Education Student to work in Records in New Jail R 5,460 2,730 2,730 (1/2 cost shared by Sheriff's Dept.)

Police Department 4 cell phones for CID annual cost R 2,400 0 2,400

Police Department 3 licenses for Laserfiche annual cost (1/3 cost shared by Sheriff's Dept.) R 537 179 358

Recreation Division Internet registration software to allow public to register and pay online for R 3,000 0 3,000 Recreation and Park Pavilions - Annual Fee

Recreation Division Analog Phone line to Bunker Hill Maintenance building for new computers R 100 0 100

Purchase of Services Support for America's River Corp. - $10,000 for Corporation expenses R 10,000 0 10,000 c.1'l- TOTAL GENERAL FUND RECURRING PACKAGES 716,115 32,928 683,187

NON-RECURRING DECISION PACKAGE COSTS Airport Department Utility pickup vehicle for routine maintenance projects on airfield N 23,500 0 23,500

Airport Department 12,000 pound mechanic vehicle lift for Airport maintenance N 8,000 0 8,000

Airport Department 2nd Automatic Electronic Defibrillator for FBO N 3,000 0 3,000

Airport Department Wireless laptop computer for daily runway safety checks N 3,000 0 3,000

Airport Department Three point hitch roto-tiller for use on borrow sites N 2,700 0 2,700

Airport Department Forks for John Deere loader for loading and off-loading freight N 5,000 0 5,000

Cable TV Division Electric ice-melting system at edges of roof, gutters & downspouts N 7,395 0 7,395

R =Recurring /N =Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006

ADDL ADDL NET TAX DEPT DESCRIPTION R/N EXPENSE REVENUE IMPACT Cable TV Division Replace wooden front canopy sign w/SS panel, aluminum frame & lettering N 2,610 0 2,610

Cable TV Division Networked digital video surveillance system with audio, intercom & N 6,960 0 6,960 remote door latch release for rear (alley) entry security

City Clerk's Office Additional Laserfiche scanning equipment-City Wide N 5,000 0 5,000

City Manager's Office-Public Infc Reinstate City Focus to original format - full color, more pages, mailed quarterly N 10,000 0 10,000 with one being an "annual report" insert in the Telegraph Herald

City Manager's Office Office Set-Up costs for GIS Coordinator position for central management N 4,500 0 4,500

City Manager's Office Digital camera for use by the Public Information Officer and other staff N 500 0 500

~ B:ngineering Department Office set up and training budget for requested Project Manager position N 4,600 0 4,600

Engineering Department Color Laser Printer to print 11 x17 for 24 employees to use N 5,000 0 5,000

Engineering Department Additional Office Space for Engineering Department N 32,000 0 32,000

Fire Department Laptop computers in medic units and software for collecting data on N 40,000 0 40,000 service calls and meeting state reporting requirements

Fire Department Dual Piercing Nozzle to attack fire in attics faster N 1,800 0 1,800

Fire Department Used police vehicle for emergency medical services supervisor N 7,500 0 7,500

Health Services Slide-in unit for Animal Control truck bed to haul impounded animals N 5,500 0 5,500

Housing Services Provide uniforms for five housing inspectors (1.2 FTE allocation) N 44 0 44

Human Rights Broad-based marketing plan designed to counteract hate incedents that N 22,300 0 22,300

R =Recurring / N =Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006 ADDL ADDL NET TAX DEPT DESCRIPTION R1N EXPENSE REVENUE IMPACT have been occurring in the community.

Information Services Dept. Installation of Enterprise-wide Spyware Detection Software N 4,500 0 4,500

Information Services Dept. (3) additional 73 Gigabyte drives & (3) 320 Gigabyte drives for Storage N 24,413 0 24,413

Information Services Dept. Three palm pilots for balance of staff N 600 0 600

Information Services Dept. Install electro-static discharge flooring in computer room N 2,625 0 2,625

Information Services Dept. Upgrade of ArcServe software for performing backups on City's servers N 5,400 0 5,400

Information Services Dept. Additional CISCO 3750 switch providing additional switched ports N 9,379 0 9,379

~ ~nformation Services Dept Wireless access point to be used through City based on need N 900 0 900

Information Services Dept Update City web site "look" with updated background pics and fonts N 1,350 0 1,350

Legal Department Increase part-time City Solicitor postion to full-time Asst City Attorney N 20,441 0 20,441 (FY'06 cost reflects 1/3 of year - annual wage pkg recommended $64,327 (16.816) 0 (16.816) with cost offset by position reduction -$67,264 =net annual savings of -$2,937)

Legal Department Office furniture and equipment for office of full-time Asst City Attorney N 6,300 0 6,300

Legal Department Equipment for use by part-time Secretarial position for the full-time Asst City Attorn N 3,750 0 3,750

Library Department Upgrade seating in Young Adult area N 975 0 975

Library Department Wireless internet access for patrons (internet access fee revenue in) N 14,692 0 14,692

Library Department Additional computers in Children's Activity N 6,800 0 6,800

R =Recurring /N =Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006 ADDL ADDL NET TAX DEPT DESCRIPTION RlN EXPENSE REVENUE IMPACT Library Department Computer workstation for staff in Children's area N 3,400 0 3,400

Library Department Guiding signage in Children's area N 1,200 0 1,200

Operations & Maintenance Retention of Occupational safety professionals for safety training N 5,000 0 5,000

Operations & Maintenance Truck crane with auger attachment for sign maintenance worker N 23,600 0 23,600

Operations & Maintenance New sign making equipment -computer & software for sign design N 30,000 0 30,000

Operations & Maintenance Flat bed trailer to haul suction & discharge hoses for 10" flood control pump N 2,300 0 2,300

Park Division Maint. Worker who installs playground equipment to get safety certified N 800 0 800 c; :park Division Two computers for park maintenance & forestry headquarters (get on-line) N 5,400 0 5,400

Park Division One ton dump truck for snow removal efforts N 28,600 0 28,600

Park Division Refuse cart lifter to be installed on Park refuse truck N 5,500 0 5,500

Park Division Tailgate lift to be installed on the mechanic's truck N 2,200 0 2,200

Park Division Field rake for infield maintenance of limestone fields N 9,000 0 9,000

Police Department Add patrol vehicle to reinstate FY 2004 reduction N 37,032 0 37,032

Police Department Sal licenses & agents for Emergitech upgrade in Jail N 12,000 6,000 6,000 (1/2 cost shared by Sheriff's Dept.)

Police Department Computer room partition for noise barrier, security, and climate control N 10,000 5,000 5,000 (1/2 cost shared by Sheriff's Dept.)

R =Recurring /N =Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2006 ADDL ADDL NET TAX DEPT DESCRIPTION R/N EXPENSE REVENUE IMPACT Police Department Forensic Computer Analyst training and equipment for examining computers N 17,000 0 17,000

Police Department Remodeling of basement locker rooms to expand for CPO & Comm. Police N 4,000 0 4,000

Police Department 3 licenses for Laserfiche (1/3 cost shared by Sheriff's Dept.) N 1,890 630 1,260

Police Department Retain one old squad care for shared use by COP's and DARE officer N 5,000 0 5,000

Police Department Black and white scanner for person working in lobby reception position N 5,235 2,617 2,618 (1/2 cost shared by Sheriff's Dept.)

Police Department Network color printer/copier for Crime Prevention/COP area N 600 0 600

Police Department Automatic Electronic Defibrillator for report pick up area N 2,063 1,031 1,032 ~R (1/2 cost shared by Sheriff's Dept.)

Recreation Division Internet registration software to allow public to register and pay online for N 3,000 0 3,000 Recreation and Park Pavilions - 2 day on site training for 5 core users

Recreation Division Computers for aquatic, adult athletics, and golf course supervisor N 8,100 0 8,100

Recreation Division Hardware/software for point-of-sale system for Bunker Hill Golf Course N 15,000 0 15,000

TOTAL GENERAL FUND NON-RECURRING PACKAGES 524,138 15,278 508,860

TOTAL RECURRING AND NON-RECURRING TAX SUPPORTED 1,240,253 48,206 1,192,047

R =Recurring / N =Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES NON-PROPERTY TAX FUNDS FISCAL YEAR 2006

AUUL AUUL DEPT DESCRIPTION R/N EXPENSE REVENUE NET IMPACT

ROAD USE TAX FUND Operations & Maintenance Purchase one garage and parking lot sweeper for new Municipal Services Ctr. N 24,000 0 24,000

Operations & Maintenance Hydraulically controlled plow gate for heavy accumulations along streets N 8,000 0 8,000

Engineering Department Digital Camera for use by Engineering staff inspectors N 400 0 400

Engineering Department Pocket Actra device for traffic controller programming N 2,500 0 2,500

Engineering Department Fiber Optic training due to new communication technologies R 2,000 0 2,000 Subtotal Road Use Tax 36,900 0 36,900

DBQ INDUSTRIAL CENTER WEST TIF Ec?nomic Development Retired Economic Development Director consultant services for DICW Expansion Proj. N 10,000 0 10,009 c.n 0) Subtotal DICW TIF 10,000 0 10,000 I

UDAG FUNDS Economic Development Dubuque Initiatives partnership R 35,000 0 35,000 Subtotal UDAG 35,000 0 35,000

COMMUNITY DEV. BLOCK GRANT Purchase of Services Lifetime Center -Increase request from $20,000 to $25,000 R 5,000 0 5,000

Housing/Comm. Dev. Provide uniforms for five housing inspectors (2 FTE allocation) N 442 442 Subtotal CDBG . 5,442 0 5,442

LEAD FUND Housing/Comm. Dev. Provide uniforms for five housing inspectors (2 FTE allocation) N 442 442 Subtotal Lead Paint Grant Fund 442 0 442

SECTION 8 FUND Housing/Comm. Dev. Provide uniforms for five housing inspectors (1.8 FTE allocation) N 397 397 Subtotal Section 8 Fund 397 0 397 R =Recurring / N =Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES NON-PROPERTY TAX FUNDS FISCAL YEAR 2006

AUUL AUUL DEPT DESCRIPTION R1N EXPENSE REVENUE NET IMPACT

CABLE TV FUND Cable TV Division Restores cleaning service to City Hall Annex from 3 to 5 days per week R 267 0 267

Cable TV Division Electric ice-melting system at edges of roof, gutters & downspouts N 1,105 0 1,105

Gable TV Division Replace wooden front canopy sign w/SS panel, aluminum frame & lettering N 390 0 390

Cable TV Division Networked digital video surveillance system w/audio, intercom & N 1,040 0 1,040 remote door latch release for rear (alley) entry security Subtotal Cable TV Funds 2,802 0 2,802

ENTERPRISE FUNDS

SEfier Fund Operations & Maint.-Sewer Retention of Occupational safety professionals for safety training N 4,500 0 4,500

Water Pollution Control Cell phone for maintenance personnel R 164 0 164

Water Pollution Control Cell phone for laboratory personnel R 164 0 164

Water Fund Water Distribution One ton dump truck with power valve operator to enhance safety and efficiency N 59,000 0 59,000

Refuse Fund Operations & Maint.-Refuse Right of Way Collection fees for Violation Enforcement R 1,200 5,250 (4,050)

Subtotal Enterprise Funds 65,028 5,250 59,778

SERVICE FUND City Manager's Office Retired Admin. Services Manager consultant services to assist with Vision Iowa R 1,000 0 1,000

Engineering Department Digital Camera for use by Engineering staff inspectors N 400 0 400 R = Recurring / N = Non-Recurring SUMMARY OF REQUESTED DECISION PACKAGES NON-PROPERTY TAX FUNDS FISCAL YEAR 2006

AUUL AUUL DEPT DESCRIPTION R1N EXPENSE REVENUE NET IMPACT

Engineering Department Add Project Manager position to manage City capital improvement projects R 66,825 0 66,825

Operations & Maintenance Vehicle diagnostic computer and supporting software/hardware N 11,460 0 11,460

Operations & Maintenance Promoting a mechanic to 2nd lead mechanic for leadership R 949 0 949 in Garage during PM hours

Operations & Maintenance Printer for Equipment Maintenance Supervisor N 450 0 450

Subtotal Service Fund 81,084 0 81,084

TOTAL NON-PROPERTY TAX FUND PACKAGES 237,095 5,250 231,845

I 0'1 co TOTAL IMPROVEMENT PACKAGES ALL FUNDS 1,477,348 53,456 1,423,892 I

R = Recurring / N = Non-Recurring PERSONNEL CHANGES IN RECOMMENDED FY 2006 BUDGET

The Fiscal Year 2006 bUdget recommendation decreases the full-time personnel complement by 1.00 FTE from Fiscal Year 2005. Part-time equivalents have been decreased by 2.06 full-time equivalents. The changes can be summarized as follows:

DEPARTMENT POSITION FULL-TIME PART-TIME EXPLANATION

City Manager GIS Coordinator 1.00 Additional position for quality control/central mgmt

Civic Center Civic Center Manager (1.00) Civic Center is privately managed as of July 1, 2004. Events Coordinator (1.00) Employees have transitioned over to become employees Technical Director II (1.00) of SMG, Inc. They are no longer employees of the City. CC Operations Supervisor (1.00) Utility Worker (1.00) Concessions Manager (1.00) Building Supervisor (1.00) Secretary (1.00) Crew Leader (0.60) ci, co Zamboni Driver (0.57) I Laborer II (Housekeeping) (3.14) Bartender (0.35) Concession Worker (0.99) Concession Assistant (0.44) Usher (0.08) House Manager (0.07) House Staff - Cashier (0.79) Crew Leader-Reimbursable (0.56) User - Reimbursable (1.52) Laborer II Stage - Reimbursable (1.10) Laborer I- Reimbursable (0.74) House Staff - Cashier - Reimb (0.23) Usher III I-Reimbursable (0.54)

Emergency Comm. Dispatcher (0.56) Dispatcher 1.00 Changed vacant PT position to FT

Engineering Project Manager 1.00 Additional position to manage capital improvement projects DEPARTMENT POSITION FULL-TIME PART-TIME EXPLANATION

Finance Dept PT Accountant (0.67) Financial Analyst 1.00 Upgrade from PT Accountant to FT Financial Analyst PT Water Meter Inspector 0.80 Water Meter Inspector (1.00) Change from FT position to PT

Human Rights PT City Solicitor (0.20) Human Relations Specialist 1.00 Upgrade from PT to FT with planned retirement of City Solicitor Intern (0.14) Reduce hours due to hiring of FT Human Relations Specialist

Legal Dept PT Secretary 0.38 Add PT Secretary to support legal staff Assistant City Attorney 1.00 Change from PT to FT with planned retirement of City Solicitor

Library PT Library Assistant 0.50 Add PT position to Circulation Services Library Assistant (1.00) I 0) Library Aide 1.00 Position upgrade from Library Assistant to Aide 0 I Student Assistants 0.90 Additional hours in Adult & Children's Services Library Aide 0.63 Adds PT Aide to Children's area Intern 0.50 Adds PT Intern to help out Administrative Assistant

Parking Division Laborer - G.D. (0.50) Eliminate FT position shared with Parking; Changed to PT Meter Checkers (2.00) PT Meter Checkers 2.00 Change vacant FT meter checkers to PT

Planning Dept PT Assistant Planner (0.50) Upgrade from PT to FT to support Rehab, Historic Assitant Planner 1.00 Preservation, and Planning activities

Police Records Room Supervisor 1.00 Additional position for maintaining records room Police Patrol Officer 1.00 Add Patrol Officer-funded by 18 County Drug grant Corporal (1.00) Patrol Lieutenant 1.00 Position upgrade from Corporal to Lieutenant

Transit Transit Dispatcher 0.40 Add PT positions in Mini Bus due to attrition of Project Concern Bus Operator 4.98 driviers replaced with City of Dubuque employees. Transit Service Workers 1.50 Reclass FT positions that were previously charged through the City Garage at an overhead rate. DEPARTMENT POSITION FULL-TIME PART-TIME EXPLANATION

Operations & Maint. Service Workers (1.55) Reclass FT positions that were previously charged through the City Garage at an overhead rate to Transit. Laborer - G.D. (0.50) 0.50 Eliminate FT position shared with Parking; Changed to PT

TOTAL FULL-TIME EQUIVALENT CHANGES (3.05) (2.20)

TOTAL FULL-TIME EQUIVALENTS FOR FY 2006 518.00 55.95

I 0').... I ASSUMPTIONS USED IN PREPARING THE FY 2006 BUDGET

In Fiscal Year 2006, the individual department, division and activity budgets do not include the wage package since no settlement has been reached with the bargaining units. There has been an estimate projected in the overall operating budget.

The major assumptions used in preparing the Fiscal Year 2006 budget include the following:

Assumptions - Resources

a. Unencumbered funds or cash balances of $200,000 will be available in FY 2006 and each succeeding year to support the operating budget.

b. State-shared revenues, such as Bank Franchise, Municipal Assistance, Liquor Sales, Personal Property Replacement Taxes, and Monies and Credits have been permanently cut from the City's resources in the last 2 budget years.

c. Hotel/motel tax receipts will increase 10 percent over FY 2005 budgeted receipts for FY 2006, and then increase at an annual rate of 5 percent per year.

d. State Transit operating assistance will also be maintained at its current level.

e. Miscellaneous revenue, excluding state shared revenues, has been . estimated at 2 percent growth per year over budgeted FY 2005.

f. Gaming revenues generated have been estimated based on revised projections from the implementation of a new lease agreement and expanded gaming operations from increasing slot machines (600 to 1,000).

g. Gaming revenues from taxes and the ORA lease (not distributions) have been adjusted from the FY 2005 split of 75% / 25% between operating and capital budgets, to a 65% percent operating and 35% capital budget split for FY 2006.

h. The residential rollback factor will decrease from 48.456 percent to 47.960 percent or a 1.02 percent reduction for FY 2006. For Fiscal Years 2007 and beyond, a 10-year average for rollbacks and equalization orders was used.

i. Property reappraisals were completed by the Dubuque City Assessor's office and went into affect January 1,2004. The FY 2006 assessed valuation for the City of Dubuque is based on the reappraised valuations. Residential property valuations increased 6 percent, Commercial property valuations

-62- decreased 2.7 percent and Industrial property valuations increased 19.4 percent. The average home value was increased 6 percent when determining the FY 2006 property tax rate, reflecting no property tax increase for the average homeowner. Assessed valuations were increased 2 percent per year beyond FY 2006. j. Sales tax projections anticipate 50 percent of four quarterly payments in the General Fund for property tax relief. Sales tax projections for FY 2006 have been estimated to increase 10 percent over actual FY 2004 and then increase at an annual rate of 4 percent per year. k. It is anticipated that in FY 2005 and beyond, 75 percent of the revenue from the Downtown TIF will be used for downtown development projects in order to support additional downtown parking, gateway improvements and plaza amenities. To the extent these funds are not required to support debt payments or project expense, the excess will be distributed per state code to each taxing body. Certain economic development grants require 100 percent of the revenue from a particular project.

I. For purposes of budget projections only, it is assumed that City property taxes will continue to increase at a rate necessary to meet additional requirements over resources beyond FY 2006, with the gaming revenue (from taxes and the ORA lease) split remaining at 65% operating budget and 35% capital budget. m. Gas and electric franchise fees have been adjusted based on one year's trend data. The FY 2006 budget is estimated to increase about 7 percent over 2003-2004 actual, and then increases at an annual rate of 2.5 percent per year.

Assumptions - Requirements a. A wage adjustment is reflected in the projections for FY 2006 and each succeeding year. Police and Fire retirement rates have been increased 13.2 percent, costing the City an additional $308,180 per year. b. Health insurance costs are estimated to increase 9 percent over the FY 2005 budgeted rates. Estimates for FY 07-10 have been increased by 7 percent per year. c. General operating supplies and services are estimated to increase 6 percent over actual in FY 2004 or 3 percent over budget in FY 2005, depending on which year reflects expenditures more accurately. 2.5 percent increase is estimated in succeeding years.

-63- d. Electrical energy expense is estimated to increase 12 percent over FY 2004 actual expense, then 2.5 percent per year beyond. e. Natural gas expense is estimated to increase 10 percent over FY 2004 actual, then 2.5 percent per year beyond. There is no degree-day adjustment this year. f. The Convention and Visitors Bureau contract will continue at 50 percent of actual hotel/motel tax receipts, less the loan repayment. g. Equipment costs are estimated higher for FY 2006 budget to get "back on track"; due to the decreased approved replacements in FY 2005. h. Debt service is estimated based on no additional tax-supported General Obligation bond sales in FY 2006 - 2010.

I. Unemployment expense in the General Fund has been increased from $25,000 to $45,000 for FY 2006 based on past years actual experience. j. Motor vehicle fuel expense is estimated to increase 8 percent over FY 2004 actual expense and maintenance expense has been increased 6 percent over FY 2004 actual expense. k. Postage rates are estimated to remain steady over the next few years.

I. Travel Professional Conference and Strategic Planning expense are funded in FY 2006.

-64- PARTNERSHIPS AND CONTRACTED SERVICES The City of Dubuque has made significant strides in forming partnerships with other organizations in an effort to avoid service duplication and to combine resources for greater impact than could be produced independently. Among the more prominent partnerships the City has formed in recent years:

Business partner with Marshall and Prescott Schools DARE Program - County Sheriff and Dubuque Community School District Community Advisory Panel to promote harmonious relations between the Police and minority citizens -NAACP Dubuque County Drug Task Force - County Sheriff and County Attorney Jail Diversion Program - Partnership with Dubuque County and mental health institutions to address alternatives to jail for the mentally ill Heritage Trail development - Dubuque County Conservation Board DREAMS Program for lower income, first time homebuyers - American Trust, Dubuque Bank and Trust, Firstar Savings, Mercantile Bank, and Dubuque County Extension Office HEART Program - partnership with Four Mounds Foundation, Dubuque Community Schools and Four Oaks for developing skills for at-risk students and provide renovation of affordable housing stock Homeless Coordinating Board - Gannon Center, Legal Services, Project Concern, Visiting Nurses Association, Maria House and Community Oriented Police Officers Mississippi Valley Promise - mobilizing to build the character and competence of our nation's youth Intergovernmental cooperation and regional planning - East Central Intergovernmental Association (ECIA) and Dubuque Metropolitan Area Transportation Policy Committee Economic development - joint efforts of City, Greater Dubuque Development Corporation, Dubuque Main Street, Ltd., Dubuque Initiatives and Dubuque Area Chamber of Commerce River Valley Initiative - Business recruitment and job creation program with Greater Dubuque Development Corporation Tri-State Health CARE Coalition - partnership with numerous employer and labor groups to address healthcare issues Culture & Entertainment District - partnership with State of Iowa, Dubuque Main Street, the Cultural Alliance and other arts organizations to establish cultural programs in downtown. Uptown Recreation Program - some program facilities and/or activities provided by Dubuque Museum of Art, Four Mounds Foundation, and numerous public schools and churches Riverfront Development - joint fund raising and planning efforts with America's River Corporation (whose board represents Dubuque County Historical Society, Chamber of Commerce/Convention and Visitors Bureau, Dubuque Main Street, Port of Dubuque Property owners and the Dubuque Racing Association) Partnership with Dubuque Community School District to create a Downtown Neighborhood Resource Center at Prescott school Partnership with S1. Mark's Community Center and neighborhood associations for use of Comiskey Park as a Neighborhood Resource Center Partnership with S1. Mark's Community Center and Dubuque Community School District for before and after school programming at public schools Youth Baseball and Soccer - use City-owned facilities to play games and practice High schools and colleges use City-owned baseball facilities for games Jaycees use Hawthorne Street Peninsula for Fourth of July fireworks Riprow Valley Coalition with City and State partners to develop new park In addition to forming partnerships with other organizations, the City is aggressively pursuing alternative service delivery methods when an alternative might provide equal or better service in a more cost efficient manner or provide a service the City would not otherwise provide. Examples of contractual arrangements include:

Dubuque Arboretum Association leases Marshall Park and operates the Dubuque Arboretum and Botanical Gardens

-65- PARTNERSHIPS AND CONTRACTED SERVICES Page 2

State of Iowa leases the E.B. Lyons Nature Center and Preserve and operates it as part of the Mines of Spain The Four Mounds Foundation signed a lease for Four Mounds Park and operates it for public use DUbuque County Historical Society leases the Ham House and operates it as a museum •A private firm processes and markets municipal collected recyclables Painting of street markings is contracted Concession operations are leased at Flora Pool, Sutton Pool, and McAleece Park and Recreation Complex Animal shelter services are contracted to the Dubuque Humane Society Water meter reading is contracted to Peoples Natural Gas A private firm does sludge hauling for the Water Plant •A private firm is contracted for management of Five Flags Civic Center A private firm is contracted for management of Grand River Center

The activities shown on this page are only examples of the many programs, services and coordination provided through the joint efforts of City departments and other public and private entities. The total complement of joint efforts will surely change with progression of the program and service reviews.

-66- OVERVIEWS

-67- -68- CITY OF DUBUQUE FISCAL YEAR 2006 RECOMMENDED BUDGET FACT SHEET

Total Budget $ 115,718,896 20.85% more than FY 2005 Operating Budget $ 72,218,417 9.12% more than FY 2005 Capital Budget $ 43,500,479 *47.10% more than FY 2005 City Tax Asking $ 16,172,986 1.22% less than FY 2005

City Tax Rate $9.6991 per $1,000 3.70% less than FY 2005 Taxable Valuation $1,667,481,230 2.67% more than FY 2005 TIF Increment Valuation $114,635,711 0.22% more than FY 2005 Tax Rate Change $-.3729 **0.86% less than FY 2005

*FY 2005 was 20.83% less than FY 2004. **FY 2005 had a rate change of -.2010 from FY 2004

Impact on Property Owners (City Taxes Only)

Residential =0% Commercial =-5.60% Industrial = + 14.98%

Recommended Fee Adjustments

Sewer 5.5% rate increase effective July 1, 2005

Water 4% rate increase effective July 1, 2005

Stormwater Stormwater monthly utility rate increases to $1.79 from $1.29 per month per Standard Family Unit (SFU) equivalent effective July 1, 2005.

Engineering The minimum charge for excavation permits will increase from $15.00 to $50.00 for more accurate cost recovery.

Operations & Maintenance City Operations & Maintenance Department pavement replacements cost per square foot (s.f.) increase would be from $4.75 to $6.55 (for asphalt); $5.75 to $8.55 (for asphalt over concrete), and $6.25 to $8.00 (for concrete replacements), respectively, which is just a recovery of costs.

Parking a) 5th Street Ramp monthly rate from $38.00 to $40.00, $2 increase. b) Lot 1 (9th and Central) monthly rate from $25.00 to $27.00, $2 increase. c) Lot 2 (9th and Bluff) monthly rate from $25.00 to $27.00, $2 increase. c) Lot 10 (5th and Main) monthly rate from $35.00 to $37.00, $2 increase.

Recreation Golf fee increases proposed in the Golf Maintenance activity are: League rate (+$.50); Individual passes (+$10.00); Couples and family passes (+$15.00).

Golf fee increases proposed in the Golf Operations activity are: 18-hole cart rental (+$1.00 to a fee of $23.00); 9-hole cart rental (+$1.00 to a c:\123DATA\Bud06\Citizens Guide\06 Factsheet.doc.rtf -69- FY 2006 Recommended Budget Fact Sheet Page 2

fee of $14.50).

Fee increases proposed in the Adult Athletics activity are: +$15 per team for basketball and softball and +$5 per team for volleyball.

Housing Inspection fees will increase $.75 from $9.25 per unit to $10.00.

Refuse Monthly rate from $8.51 to $8.70, effective July 1,2005

REFUSE: Pay As You Throw extra garbage pickup tags from $1.15 to $1.20; to $2.00; and subscription for a 2nd oversized can from $5.50 to $7.00

LARGE ITEM REFUSE: FY 2006 budget proposes lowering the minimum fee from $8.00 to $6.00, but lowers the minimum quantity from two hopperfuls toone hopperful; Extra hopperfuls would go from $2.00 to $4.00; First appliance pickup from $10.00 to $12.50; additional appliance pickup from $9.00 to $12.50; and a new fee would be added for collections that are required to be made in off-route day collection areas for $10.00.

YARD WASTE: Yard waste annual decals from $25.00 to $26.00; Yard waste brush-ties from $1.05 to $1.20; and Yard waste single-use stickers from $1.05 to $1.20.

This Solid Waste Right Of Way (ROW) Violation Enforcement would enable solid waste crews to red tag, and upon follow-up, to collect non-compliant solid waste containers and stockpiled refuse at the City's Right Of Way. This initiative would implement timely corrective action and collect compensatory revenue from chronic offenders, while improving neighborhood sanitation and aesthetics. It is a recommendation from the inter-departmental Garbage Enforcement Taskforce and is endorsed by the Solid Waste Operations Review Team. Both groups recommend implementation April 3, 2005, with the annual start of yard waste collection service.

For collection of the first offense, after allowing six days for abatement, the following charges would apply: • An Extra Garbage Pickup Tag double fee (FY05: $2.30) for each 40-pound equivalent bag, qualified item, or rigid container of solid waste collected; • An $8.00 fee for each bulky or over 40-pound item collected; •A $20.00 fee for each small uncontained, loose pile; •A $20.00 fee for each appliance collected.

For collection of the second offense, after allowing four days for abatement, the following charges would apply: •A $10.00 administration fee, plus; • An Extra Garbage Pickup Tag triple fee (FY05: $3.45) for each 40-pound equivalent bag, qualified item, or rigid container of solid waste collected; •A $16.00 fee for each bulky or over 40-pound item collected; c:\123DATA\Bud06\Citizens Guide\06 Factsheet.doc.rtf -70- FY 2006 Recommended Budget Fact Sheet Page 3

•A $30.00 fee for each small uncontained, loose pile collected; •A $30.00 fee for each appliance collected.

For collection of the third and subsequent offences, there would be immediate abatement and the following charges would apply: •A $10.00 administration fee, plus;

• An Extra Garbage Pickup Tag quadruple fee (FY05: $4.60) for each 40-pound equivalent bag, qualified item, or rigid container of solid waste collected; •A $24.00 fee for each bulky or over 40-pound item collected; •A $40.00 fee for each small uncontained, loose pile; •A $40.00 fee for each appliance collected.

Positions Full-Time Changes Full-Time Complement

All Funds - 3.05 518.00

c:\123DATA\Bud06\Citizens Guide\06 Factsheet.doc.rtf -71- CITY OF DUBUQUE ORGANIZATIONAL CHART

Corporation Counsel CITY COUNCIL City Clerk

Library Airport

Assistant City Manager Public Information Officer CITY MANAGER Cable TV Personnel Manager

BUdget Director Neighborhood Development

I -.I ~ I II I IIIII I Building Economic Emergency Finance Fire Health Housing & Human Information Services Development Communications Department Department Services Community Rights Services Department Department Department Development Department Department Emergency Department Parking System Management Transit Division

I I I I II I Leisure Services Operations & Planning Police Public Worksl Water Water Pollution Department Maintenance Services Department Engineering Department Control Department Department Department Department Civic Center Park Recreation

10/5/04 CITY OF DUBUQUE Boards & Commissions

Airport Commission Airport Zoning Commission Airport Zoning Board of Adjustment Arts and Cultural Affairs Advisory Commission Board of Appeals - Building Code Board of Review Cable Community Teleprogramming Commission Cable TV Regulatory Commission Civic Center Commission Civil Service Commission Community Development Advisory Commission Electrical Code Board Enterprise Zone Commission Environmental Stewardship Commission Historic Preservation Commission Housing Advisory Trust Fund Committee Housing Code Appeals Board Housing Commission Human Rights Commission Investment Oversight Commission Library Board of Trustees Long Range Planning Advisory Commission Mechanical Code Board Park and Recreation Commission Plumbing Board Transit Board of Trustees Zoning Advisory Commission Zoning Board of Adjustment

-73- PERSONNEL COMPLEMENT··FULL·TIME 1981·2006

DEPARTMENT! 1981 25-YEAR HIGH 25-YEAR LOW 2006 DIVISION NUMBER YEAR NUMBER YEAR NUMBER NUMBER NOTES *Federal drug grant funds Police Department 90 2006* 99 1985-1990 82 99 one officer, add postion Part of Police & Fire Depts. Emergency Comm 0 2006* 11 1985-1991 8 11 in 1981, *PTto FT

Fire Department 94 1981 94 1988-1990 88.5 90

1981; 1986 1982-1985; Adds Human Relations 1990-1997; 1988-1989; Specialist when PT City Human Rights 3 2006 3 1998-2005 2 3 Solicitor Retires

Building Safety 12 1981 12 1985-1988 6 7 Included School Nursing Health Services 9.5 1981 9.5 1989-1990 4 5 Program in 1981

Park Division 27.2 1981 27.2 1996-2001 20.92 21.92 1988-1990; Chgd to private mgmt Civic Center 13.75 1981 13.75 2006 1.15 1.15 7/1/04. Empl to new firm. Recreation Division 13 1981 13 1991 7.93 8.93

Library 20 1981 20 1989 14 18

Airport 8 2003* 14 1983-1994 7 13 *Security Personnel - LEO 2001-2002; Full time vacancy filled with Transit 44 1981-1982 44 2004-2005 7 8.5 part time personnel

Public Works 1 1990-1991 2 1993-2001 0 0 1983; Engineering 22 2006* 25 1985-1987 18 25 *Adds Project Manager

Water Department 32 1981-1982 32 1999-2006 23 23

Water Pollution Cntrl 37 1981-1982 37 2002-2006 18 18

Operations/Maintenance 89 1981 89 1990 73 86.5·

Parking Division 9.8 2002-2003 11.5 1985 7.5 84th Street Ramp Opened Community/Economic Community Devel. moved to Development 7 1981 7 2003-2006 3 3 Housing Lead Paint Grant/Comm Housing Services 12.5 2005-2006 21 1984-1985 10.5 21 Devl positions moved

Planning Services 4 2006* 8 1985-1987 2.5 8 OpT Asst Planner to FT 1981-1982; 2 Positions from other dept 2003-2004; & 1 eliminated in 2004;adds City Manager's Office 11 2006 11 1993 7.6 11 GIS Coor. 2005

City Clerk's Office 3 1981-2006 3 1981-2006 3 3 Meter Reading Outsourced & F-T Position Changed to Finance Department 20 1981-1989 20 1997*-2006 14 14 P-T in 2004 *Adds Asst City Attorney when PT City Solicitor Legal Department 2 2006* 3 1986 1 3 Retires 1985-1991; Information Services 2.5 1998-2006 6 1981 2.5 6 Graphic Arts Position Moved Cable TV 0 1991; 1993 4 1981 0 2 to City Mgrs Office City Hall Maintenance 1 1981-1982 1 1983-2001* 0 o *Outsourced

588.25 1981 588.25 1989 I 495.8 518.00 12% Reduction 1981-2006 -74- City Of Dubuque Personnel Complement Summary By Department FY 1981 - FY 2006 Full-Time Employees

DEPARTMENT/DIVISION FY 81 FY 82 FY 83 FY84 FY 85 FY86 FY 87 FY88 FY89 FY90

Police Department 90.00 86.00 86.00 86.00 82.00 82.00 82.00 82.00 82.00 82.00 Emergency Communications 8.00 8.00 8.00 8.00 8.00 8.00 Fire Department 94.00 94.00 93.00 93.00 89.50 89.00 89.50 88.50 88.50 88.50 Building Safety Department 12.00 10.00 7.00 7.00 6.00 6.00 6.00 6.00 7.00 7.00

Human Rights Department 3.00 2.00 2.00 2.00 2.00 3.00 2.25 2.00 2.00 3.00 Health Services Department 9.50 8.50 6.50 5.50 5.50 5.00 5.00 5.00 4.00 4.00 Park Division 27.20 24.20 22.50 21.50 21.50 22.00 22.00 22.00 22.00 22.00 Civic Center Division 13.75 11.00 11.00 11.00 11.00 11.00 9.00 8.00 8.00 8.00 Recreation Division 13.00 11.00 9.50 9.50 9.50 9.00 8.00 8.00 8.00 8.00 Library Department 20.00 18.00 16.00 16.00 16.00 16.00 16.00 15.00 14.00 15.00

Airport Department 8.00 8.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Transit Division 44.00 44.00 39.00 35.00 31.00 29.00 26.00 22.00 22.00 22.00 Public Works Department 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 ~ Engineering Division 22.00 19.00 18.00 20.00 18.00 18.00 18.00 19.00 19.00 20.00 If Water Department 32.00 32.00 31.50 29.50 28.50 29.50 30.50 30.50 29.50 29.50 Water Pollution Control 37.00 37.00 32.50 34.50 33.00 31.50 31.50 31.50 29.50 29.50 Operations and Maintenance Dept 89.00 83.63 81.50 81.50 77.50 78.00 78.00 75.00 74.00 73.00 Parking Division 9.80 7.80 8.50 8.50 7.50 9.00 9.00 9.00 9.00 9.00 Community/Economic Dev Dept 7.00 6.90 6.40 5.40 5.50 5.50 5.50 5.00 5.00 3.75 Housing Services Department 12.50 12.50 11.50 10.50 10.50 11.00 11.00 12.00 12.00 13.00 Planning Services Department 4.00 3.10 2.60 2.60 2.50 2.50 2.50 3.00 3.00 5.25

City Manager's Office 11.00 11.00 10.00 10.00 10.50 9.80 9.38 9.30 8.30 8.00 City Clerk's Office 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Finance Department 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 17.00 Legal Department 2.00 2.00 2.00 2.00 2.00 1.00 2.00 2.00 2.00 2.00 Information Services Division 2.50 4.00 4.00 5.50 6.00 6.00 6.00 6.00 6.00 6.00 Cable TV Division 1.00 1.00 1.00 2.00 2.00 2.00 2.00 3.80 City Hall/Annex Maintenance 1.00 1.00

TOTAL 588.25 560.63 533.00 528.50 515.50 514.80 510.1,3 501.80 495.80 499.30

F:\USERS\ctymgrs\Budget\06 Personnel Compl Dept.doc City Of Dubuque Personnel Complement Summary By Department FY 1981 - FY 2006 Fun-Time Employees

DEPARTMENT/DIVISION FY91 FY92 FY93 FY94 FY 95 FY96 FY97 FY98 FY99 FYOO

Police Department 84.00 84.00 84.00 84.00 91.00 91.00 90.00 90.00 90.00 95.00 Emergency Communications 8.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 Fire Department 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 Building Safety Department 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00

Human Rights Department 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 Health Services Department 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Park Division 21.92 21.92 21.92 21.92 21.92 20.92 20.92 20.92 20.92 20.92 Civic Center Division 9.15 9.15 9.15 9.15 9.15 9.15 9.15 9.15 9.15 9.15 Recreation Division 7.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 Library Department 15.00 16.00 16.00 16.00 16.00 16.00 16.00 17.00 17.00 17.00

Airport Department 7.00 7.00 7.00 7.00 11.00 11.00 11.00 13.00 13.00 13.00 Transit Division 21.00 20.00 18.17 18.00 16.00 13.00 12.00 12.00 12.00 12.00 Public Works Department 2.00 1.00 .!.J Engineering Division 20.00 20.00 21.00 21.00 21.00 21.00 21.00 22.00 22.00 ' 22.00 cr Water Department 29.50 29.50 29.50 29.50 29.50 26.00 24.00 24.00 23.00 23.00 Water Pollution Control 29.50 29.50 28.50 28.50 27.50 25.00 24.00 23.00 19.00 19.00 Operations and Maintenance Dept 74.00 75.00 80.00 81.00 81.00 81.00 80.00 81.00 80.00 81.00 Parking Division 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 Community/Economic Dev Dept 3.40 3.40 3.40 3.40 4.40 4.40 4.25 4.25 5.00 5.00 Housing Services Department 14.00 14.50 14.50 14.50 14.00 14.00 14.00 15.00 18.00 18.00 Planning Services Department 5.60 6.00 6.00 6.00 6.00 7.00 7.00 7.00 7.00 7.00

City Manager's Office 8.00 8.35 7.60 8.60 8.60 8.60 8.75 8.75 9.00 9.00 City Clerk's Office 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Finance Department 18.00 18.00 18.00 17.00 17.00 17.00 16.00 16.00 16.00 16.00 Legal Department 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Information Services Division 6.00 5.50 5.00 5.00 5.00 5.00 5.00 6.00 6.00 6.00 Cable TV Division 4.00 3.80 4.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 City Hall/Annex Maintenance

TOTAL 506.00 508.55 509.67 509.50 518.00 509.00 504.00 510.00 505.00 511.00

F:\USERS\ctymgrs\Budgel\06 Personnel Campi Depl.doc City Of Dubuque Personnel Complement Summary By Department FY 1981 • FY 2006 Full-Time Employees

DEPARTMENT/DIVISION FY01 FY02 FY03 FY04 FY05 FY06

Police Department 95.00 96.00 97.00 97.00 97.00 99.00 Emergency Communications 10.00 10.00 10.00 10.00 10.00 11.00 Fire Department 90.00 90.00 90.00 90.00 90.00 90.00 Building Safety Department 7.00 7.000 7.00 7.00 7.00 7.00

Human Rights Department 2.00 2.00 2.00 2.00 2.00 3.00 Health Services Department 5.00 5.00 5.00 5.00 5.00 5.00 Park Division 20.92 21.92 21.92 21.92 21.92 21.92 Civic Center Division 9.15 9.15 9.15 9.15 9.15 1.15 Recreation Division 8.93 8.93 8.93 8.93 8.93 8.93 Library Department 18.00 18.00 18.00 18.00 18.00 18.00

Airport Department 13.00 13.00 14.00 13.00 13.00 13.00 Transit Division 12.00 7.50 8.00 7.00 7.00 8.50 Engineering Division 24.00 24.00 24.00 24.00 24.00 25.00 ~ Water Department 23.00 23.00 23.00 23.00 23.00 23.00 "t Water Pollution Control 19.00 18.00 18.00 18.00 18.00 18.00 Operations and Maintenance Dept 81.00 83.00 86.02 87.30 88.55 86.50 Parking Division 9.00 11.00 11.50 10.50 10.50 8.00 Community/Economic Dev Dept 5.00 5.00 3.00 3.00 . 3.00 3.00 Housing Services Department 18.00 20.00 20.25 20.00 21.00 21.00 Planning Services Department 7.00 7.00 7.00 7.00 7.00 8.00

City Manager's Office 9.00 9.00 11.00 10.00 10.00 11.00 City Clerk's Office 3.00 3.00 3.00 3.00 3.00 3.00 Finance Department 16.00 16.00 16.00 15.00 14.00 14.00 Legal Department 2.00 2.00 2.00 2.00 2.00 3.00 Information Services Division 6.00 6.00 6.00 6.00 6.00 6.00 Cable TV Division 3.00 3.00 2.00 2.00 2.00 2.00 City Hall/Annex Maintenance --

TOTAL 516.00 518.50 523.77 519.80 521.05 518.00

F:IUSERSlclymgrslBudgel106 Personnel Compl Dept.doc This Schedule is included for historical purposes only. The State of Iowa has changed the reporting programs; therefore new revenue and expenditure trends will be prepared in the future.

CITY OF DUBUQUE

OPERATING BUDGET FISCAL YEARS 1994-2005

EXPLANATION OF LONG-RANGE REVENUE TRENDS

The graph on the following page is provided to show trends, which are impacting the way City government is funded.

Revenue Trends

On the revenue side, what we see are fairly modest increases over the ten-year period in four areas: federal funds, state funds, cash balances and operating receipts. The area showing the most significant increase is local taxes, which includes property taxes, sales tax, hotel/motel tax and tax increment financing (TI F) receipts. Utilities and operating funds have also shown more significant increases over the ten-year period, and in particular over the last five years. Federal funds, State funds and balances have realized very modest increases over the ten-year period. The following sections provide explanations of changes throughout the ten-year period.

Operating receipts in Fiscal Year 1995 increased due to Airport revenues associated with the Fixed Based Operator (FBO) business budgeted for the first time as a City operation. In Fiscal Year 1996, the increase in operating receipts was the result of renegotiated rent from the Greyhound Park facility based on Y2 of 1 percent of gross receipts ($319,148). This revenue source continues to increase due to slot operations at the track and the larger Diamond Jo riverboat operations. The City's policy regarding gaming revenues was changed in Fiscal Year 2004 from a policy of using no more than one-third of the taxes and rental revenues in the operating budget and to using 50% of the gaming revenues in the operating budget and 50% in the capital budget. New revenues in Fiscal Year 2004 included Fire Dept charges for confined space training/preparedness and Ice Harbor parking lot lease revenue. Building inspection fees and ambulance fees were also increased significantly. Fiscal Year 2005 changed the ORA gaming revenue formula once again. The formula adopted by Council allows 75% of the ORA taxes and rental revenues in the operating budget and 25% towards the CIP budget. Fees will increase in Recreation and Golf, and the Police department added a criminal background cHeck fee.

Use of balances in the Fiscal Year 1995 budget reflected the use of Iowa Trust fund balances ($280,706), General fund balances ($127,220) related to the Police grant, debt service fund balance ($50,000) and the Fiscal Year 1993 Sales Tax balance ($48,289). Use of these fund baJances reflects the City's policy guideline on using non­ recurring balances to support non-recurring expense. In Fiscal Years 1996 through 2004, pension funds were used versus General fund balances to free up tax dollars to support the seven additional Police Officer positions added in Fiscal Year 1994. No -78- Iowa Trust fund balances were used in the operating budget beyond Fiscal Year 1995. The use of fund balances in the operating budget has remained fairly constant over the entire ten-year period. Non-recurring balances from a change in taxes paid by DRA generated additional Distribution funds, which have been used to fund non-recurring decision packages.

Local taxes have picked up the major portion of inflationary cost increases and include property taxes, hotel/moteltax (initiated in April 1979), the local option sales tax (initiated in April 1988) and tax increment receipts. The increase in local taxes in Fiscal Year 1992 was primarily in the area of sales tax receipts, which reflected a five percent growth rate plus $410,554 from prior year receipts over budget. Also increasing in the area of local taxes were tax increment receipts to cover debt on the downtown Clarion hotel TIF loan. The Fiscal Year 1993 budget reflected a 3.2 percent increase in local taxes. In Fiscal Year 1994 local taxes increased 5.6 percent, primarily due to: (a) increased hotel/motel taxes which were approved by referendum to increase from 5.0 to 7.0 percent; (b) continued growth in sales tax receipts; and a 3.5 percent increase in property tax askings. In Fiscal Year 1995, the need for increased property tax support was reduced by the Airport's FBO operation, which reduced their property tax support from $259,901 in Fiscal 1994 to $104,195 in Fiscal Year 1995. In Fiscal Year 1996 the increase in property taxes was necessary to provide increased code enforcement, meet federal and state mandates (i.e., Airport) and gradually shift additional police officer expense to property taxes. The increase for Fiscal Year 1997 in local taxes was related to an anticipated 3 percent growth in sales tax, increased tax increment receipts and a 2.4 percent increase in property tax askings. In Fiscal Year 1998 the increase reflected a 2.9 percent increase in property tax askings and a 5.3 percent increase in sales tax. The Fiscal Year 1999 budget included a 1.6 percent increase and the Fiscal Year 2000 budget a .3 percent reduction in property tax askings. In F:iscal Year 2001 and Fiscal Year 2002, the increase reflects the growth in Tax Increment Revenues for loan and economic development grant payments, as well as a 1.9 and a .7 percent increase respectively in property tax askings. Hotel/Motel tax receipts and Sales Tax receipts for Fiscal Year 2002 were budgeted to increase 5 percent per year over Fiscal Year 2000 actual receipts. The increase in local taxes in Fiscal Year 2003 reflects an increase in . Tax Increment Revenues related to the new 4th Street Ramp and Town Clock Plaza bond issues and a balloon payment on the Seigert land purchase. In Fiscal Year 2004, sales tax receipts have been increased 3% over revised State Sales Tax estimates for Fiscal Year 2003. Hotel/motel tax receipts reflect a 2% increase over Fiscal Year 2002 actual and new gas and electric franchise fees were implemented in Fiscal Year 2004. Fiscal Year 2005 reflects a 1.8% increase in property tax asking and over 6% increase in Sales Tax.

The City portion of property taxes on the average residential home in Fiscal Year 2005 will be 5.21 percent less than the Fiscal Year 1988 tax bill, when sales tax was first initiated. Commercial property tax bills are 34.50 percent more than Fiscal Year 1988 and industrial property tax bills are 27.8 percent 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.

-79- This is the tenth consecutive year that the property taxes for an average homeowner will have been reduced, or maintained at the prior year's level. It was reduced 0.87 percent in Fiscal Year 1996,0.42 percent in Fiscal Year 1997, 0.71 percent in Fiscal Year 1998, no increase for Fiscal Year 1999, a .17 percent reduction in Fiscal Year 2000, no change in Fiscal Year 2001 or Fiscal Year 2002, a 5% reduction in Fiscal Year 2003, and no change in Fiscal Year 2004 and 2005.

Increases in federal funds over the past ten years have primarily been the result of additional housing funds. In Fiscal Year 1995 the increase was the result of an anticipated federal grant for seven Police Officers. This grant was not approved and represents the decrease from Fiscal Year 1995 to Fiscal Year 1996. In Fiscal Year 2000 through 2002, a Lead Abatement Grant of $1 ,648,369, $1,469,755 and $785,106 respectively is reflected in the operating bUdget. Fiscal Year 2005 reflects increased housing and lead funds.

Increases in state funds have primarily been related to Road Use Tax receipts, which were offset to a great extent by reductions in other forms of state assistance. From Fiscal Year 1997 through Fiscal Year 2000, Road Use Tax Funds were shifted at a rate of $250,000 per year from the operating budget to the capital budget to avoid future borrowing. In Fiscal Year 2001 this shift was reversed with $60,000 moved back to the General Fund and in Fiscal Year 2003 the balance of these funds were shifted back to the operating budget to support a new wage plan approved by City Council in Fiscal Year 2002. Machinery and Equipment Replacement Funds have also increased significantly, however this revenue source was discontinued in Fiscal Year 2002 for most Iowa cities. Fiscal Year 2004 absorbed the elimination of Personal Property Tax Replacement, Municipal Assistance, Liquor Sales Tax and Mobile Home Tax. Then in Fiscal Year 2005, the State will eliminate Bank Franchise Tax and an additional 2% in State cuts is recognized.

Finally, the increase in the area of utilities from Fiscal Year 1990 through Fiscal Year 1994 represented new initiatives mandated at the state level regarding waste collection and disposal and operating expense as well as debt service for the Fifth Street Parking ~ Ramp. Since the utilities are self-supporting, these new initiatives were reflected on the revenue side by utility rate increas€s. The Fiscal Year 1993 increase reflected initiation of a curbside recycling program and a significant increase in the landfill tipping fees related to new state mandates. In Fiscal Year 1995 there were no sewer or water rate increases required and refuse collection fees were reduced from $9.00 to $8.50 per month. In Fiscal Year 1996 water rates were increased by 3 percent and refuse rates decreased from $8.50 to $7.50 reflecting a reduction in landfill tipping fees and improved market for recyclables. In Fiscal year 1997 water and sewer rates remained unchanged, while refuse rates were decreased from $7.50 to $7.25. In Fiscal Year 1998 water and sewer rates remained unchanged and refuse rates were reduced to $7.00. The reduction in overall receipts from Fiscal Year 1996 through Fiscal Year 2000 reflected savings in operating costs at both the Water and the Water Pollution Control plant. Savings at the Water Pollution Control Plant was shifted to the Sewer Construction Fund to provide for future facility and system capital improvement projects. In Fiscal Year 1999, a new, safer tablet chlorination application system was recommended at the Water Plant with an associated $100,000 increase in operating costs, and a 4.0 percent water rate increase to offset the increase. In Fiscal Year 2000, -80- a 1.0 percent water rate increase was recommended to offset the impact of inflation on operating costs and in Fiscal Year 2001 a 3 percent increase was recommended due to inflation and a trend toward reduced water consumption/sales. In Fiscal Year 2001 the significant increase in Utility revenues was associated with a $3,000,0000 addition to the 5th Street Parking Ramp and the use of sewer operating funds to prepay a General Fund loan for off-site water extension for the west side industrial park. Increases in parking system rates were approved by City Council in Fiscal Year 2001 to support the debt service associated with the borrowing. The Fiscal Year 2001 budget included a recommended increase in monthly refuse rates from $7.00 to $7.44 per month. This increase covered inflation, changing markets for recyclables and landfill fee increases. In Fiscal Year 2002, refuse rates are increased from $7.44 to $7.50 per month due to an anticipated increase in Landfill rates due to a $1.00 per ton State penalty. Sewer rates were increased by 4% due to lost revenue related to the Farmland Foods/Smithfield closing. In Fiscal Year 2003, Pay as You Throw was introduced to refuse customers. In Fiscal Year2004, water and sewer rates were increased 3% each to provide 1% for operating budget cost increases and 2% for increased payments to the construction fund for capital improvements. Through an amendment in Fiscal Year 2004, an additional 1.68% increase on water rates was adopted. Refuse rates were increased from $7.20 to $7.49. A new stormwater utility was adopted with fees starting at 1.29 per month, sufficient to cover expanded operating and debt service expense. Fiscal Year 2005 realizes water and sewer rate increases of 3% and 4%. Refuse rates are increased $7.60 to $8.50 and single use sticker fees from $1.85 to $1.15. In addition, the Parking fund is increasing meter and ramp fees, as well as modifying the Courtesy Ticket Program to one ticket per license plate for the life of the plate, versus one ticket per plate per year.

-81- -82- IOPERATING BUDGET BY SOURCE OF REVENUEI 25

* * * * 20 * * * * *

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Piscal Year.

• Federal Fund. • State Fund. A Operating Fund. • Utilitie. * Local Tax•• • Balanc•• -84- This Schedule is included for historical purposes only. The State of Iowa has changed the reporting programs; therefore new revenue and expenditure trends will be prepared in the future.

CITY OF DUBUQUE

OPERATING BUDGET FISCAL YEARS 1994-2005

EXPLANATION OF LONG-RANGE EXPENDITURE TRENDS

The graph on the following page is provided to show trends, which are impacting the way City government dollars are expended by functional area to provide City services.

Expenditure Trends

The expenditure trends by program represent the City's concern in the areas of housing, recycling, emergency services and for projects such as the leisure pools and riverboat related improvements. Beginning in Fiscal Year 1994 the figures and graph reflect some minor program assignment changes and exclusion of debt service to provide a more accuratE} reflection of trends in operating expense.

The increase in Protective Services over the years reflects new initiatives in both the Police and Fire Departments and in the Emergency Communications Center. Fiscal Year 1994 reflected a 2.66 percent increase in the retirement rates, Fiscal Year 1995 a 4.8 percent decrease, Fiscal Year 1996 a 1.05 percent decrease and in Fiscal Year 1997 a 3.7 percent decrease; all of these changes based on actuarial analysis by the new state-wide retirement system. In Fiscal Year 1995, seven additional Police Officers were added to the budget. In Fiscal Year 1998, a Programmer position was added to support Police Department systems and a Hazmat vehicle was provided for $120,000. In Fiscal Year 2000, five additional Police Officers are recommended to reinstate traffic accident investigations and help address the Criminal Investigation increased workload. The Fiscal Year 2001 budget recommendation includes one additional full-time Dispatcher and promotion of a Dispatcher to Lead Dispatcher to provide a lead for each shift and respond to increasing workload in the 911 Center. The Fiscal Year 2002 budget includes shifting the Meter Checkers from Protective Services (Police Department) to Facilities and Environment (Parking Division). A Traffic and School Resource Officer (grant funded) were in Fiscal Year 2002 plus a Clerk Typist funded 40 percent by Dubuque County. The Fiscal Year 2003 budget added a second grant funded School Resource Officer. The increase in Fiscal Year 2004 was due primarily to increased health care costs and an increase in the Police and Fire Retirement rate from 17% to 20.48%. Finally, Fiscal Year 2005's increase reflects another rise in health costs and in the Police and Fire Retirement rate, from 20.48% to 24.92%.

The slight decrease in the Human Development Program in Fiscal Year 1993 reflected final payment on Civic Center bonds in Fiscal Year 1992 and the continued decrease in Fiscal Year 1994 reflected final payment on the Library bonds in the previous fiscal year. The Fiscal Year 1998 increase reflected opening the Library on Sundays, maintenance of hike/bike trails and networking of Recreation Division -85- computers. In Fiscal Year 2002 a full time Maintenance worker was added to support maintenance of the Highway 20 landscaped areas, the industrial parks and gateways. The other significant increase was related to the City taking over the operation of the pro shop functions rather than contracting these out. Fiscal Years 2003-2005 reflect increases due to health care costs. In Fiscal Year 2004 the Grand River Center became fully operational and the City added expense in Fiscal Year 2005 of 50% of energy costs, property insurance for the center and the first of 2 operating payments per the Grand River Center Management Facility Agreement.

The more significant increases over the ten year period have been in the area of Facilities and Environment and reflect increased federal and state requirements, our own growing concern regarding the environment and recycling, and debt service on the new parking ramp and street, storm sewer and Airport related bond issues. The reduction in Fiscal Year 1994 is related to the change in the graph to exclude debt service. In Fiscal Year 1995, the Airport had a significant increase in expenses associated with the new FBO operation, which was offset by increased revenues. In Fiscal Year 1996, savings were projected in both Water and Water Pollution Control plants as a result of plant renovation projects. The Fiscal Year 1996 water rate increase was necessary to reflect decreased water sales, primarily from the Water Pollution Control Plantthat was the largest single water user in the city prior to the plant upgrade and related processing changes. The increase in: Fiscal Year 1996 was in equipment, which included replacement of major items related to government channel 8 programming ($110,045). In Fiscal Year 1997 major equipment purchases were recommended to modernize and effect operational efficiencies in refuse collection and recycling operations. The reduction in Fiscal Year 1998 reflected reduced Housing Assistance Payments and operational savings in both Transit and the Water Pollution Control Plant. In Fiscal Year 2000 the significant increase reflects the Lead Abatement· Grant of $1 ,648,369. In Fiscal Year 2001 an Engineering Inspector and an Account Clerk position are being added and there is a $305,000 increase in equipment replacement items in the Operations and Maintenance and Engineering Departments. In Fiscal Year 2002 the increase reflects a significant increase in aviation fuel costs (offset with increased revenues), increased landfill costs, shifting of the Meter Checker operations to Parking, the addition of the Downtown Long Range Planning Study, and the addition of two positions in the Federally Assisted Housing activities (grant supported). With the Farmland Foods plant closing, reductions have been made at the Water Pollution Control Plant including one less Plant Operator and savings of $70,000 in operating supplies and services. The Fiscal Year 2003 budget included the economic grant payment for the Cigna project ($285,000) and additional Federally Assisted Housing Voucher program units ($286,000). Fiscal Year 2004 reflected increased Voucher program expense of $384,000 and expanded stormwater operation and maintenance and debt service expense of $456,000. Fiscal Year 2004 budget recognized savings from the elimination of a Parking department maintenance worker, which was one of the budget shortfall actions taken in Fiscal Year 2004. Finally, Fiscal Year 2005 reflects increases in health care costs, Lead Paint Grant program expense of $505,898, and higher costs relating to street maintenance and equipment replacement in Operations and Maintenance.

In Fiscal Year 1992, the Administrative Program budget reflected the first and what turned out to be the last payment on the bonds outstanding on the riverboat -86- improvements project. In addition, in Fiscal Year 1992 the City of Dubuque defeased the remaining bonds outstanding on the Dubuque dog track. The continued reduction from Fiscal year 1993 to Fiscal Year 1994 reflected a reduction in personnel complement, and final payment on debt related to a $650,000 judgment from Fiscal Year 1991. In Fiscal Year 1998, the increase was the result of the additional programmer position for support of Police. Without the dog track and riverboat related bond issue payments, the Administration trend line follows that of Leisure Services and Protective Services, indicating a very minor increase over the years. Over the years an area of steady increase has been the Purchase of Service agreement with the Convention and Visitors Bureau, which is based on 50 percent of actual Hotel/Motel tax receipts. The continued growth in this revenue source reflects their effectiveness in promoting Dubuque as a tourist destination. In Fiscal Year 2002 a four-year Downtown Visioning Process is being recommended at a cost of $50,000 in Fiscal Year 2002, with $20,000 anticipated grant funds to offset a portion of the cost. The Fiscal Year 2003 budget reflected the reorganization of the Economic Development Department which involved shifting the Neighborhood Development Specialist position from the Facilities and Environment Program to the Administrative Program. In Fiscal Year 2004, a loan of $350,000 was approved for the Convention and Visitor Bureau to undertake an expanded marketing program for the America's River project. Fiscal Year 2005 realized savings due to the downsizing of 1 full-time position in the Finance department and 1 full-time position in the City Manager's office during Fiscal Year 2004. The savings from these cuts is offset by the increase in health care costs, and operating supplies and services. In Fiscal Year 2005, the City will begin recharging overhead costs for the Legal and City Clerk departments to the enterprise funds to more accurately reflect the services provided. Fiscal Year 2004 and 2005 proved to be challenging bUdget years.

A table is included in the budget document to demonstrate a sixteen-year history (Fiscal Year 1989-2005) and a four-year projection (Fiscal Year 2006-2009) of the increased cost of municipal services to the average homeowner. These costs include water, sewer,.refuse, stormwater and property tax bills.

-87- -88- !operating Expenditures By ProgramI 30

25

:aI:l ~ Illl 10

5

o 1995 1996 1997 1998 1999 2000 2001 2002 2003 200f 2005 Fiscal Years

• Protective Services • Human Development 6; PaciIities f< Bnvironment * Administrative -90- 160 ICity of Dubuque Change in Property Taxes by Class of PropertyI • 140 -- x ro I- ~ ...Ql 120 0- ...0 ./ a.. D D -*-- --* 0

100 A.... -----. -. -- &- ---- ...... --. .&- - .&

80 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Fiscal Years

8 Residential • Commercial .& Industrial * CPI

IRecommended Fiscal Year 2005 BUdgetl -92- CITY OF DUBUQUE FUND BALANCE, INCOME AND EXPENSE SUMMARY FISCAL YEAR 2006 RECOMMENDED BUDGET

PLUS PLUS PLUS LESS LESS REQUIREMENTS BEG. INCOME TRANSFERS PROPERTY ENDING TRANSFERS TOTAL OPERATING CAPITAL FUND BALANCE NOT TAXES IN TAX BALANCE OUT BUDGET BUDGET BUDGET

GENERAL FUND General $3,711,335 $30,322,893 $11,353,746 $14,217,136 2,774,389 $13,564,670 $43,266,051 $38,977,694 $4,288,357 Tort Liability $18,457 367,274 18,457 367,274 SUBTOTAL,General Funds $3,711,335 $30,322,893 $11,353,746 $14,584,410 $2,774,389 $13,931,944 $43,266,051 $38,977,694 $4,288,357

SPECIAL REVENUE FUNDS Road Use Tax Fund $696,607 $4,874,467 $151,781 148,461 $456,131 $5,118,263 $3,854,263 $1,264,000 Tax Increment & Reserve (566,548) 3,621,184 (232,672) 370,283 2,917,025 2,797,025 120,000 Trust & Agency 89,675 1,588,576 89,675 1,588,576 Special Assessments 515,364 970,734 515,364 970,734 UDAG Repayments 69,491 36,000 200,000 23,857 281,634 281,634 Community Dev. 174,621 1,985,061 151,944 8,385 1,999,353 1,152,420 846,933 coI Lead Grant Program (50,714) 1,235,000 (54,675) 1,238,961 1,238,961 w I Home Program Funds 12,094 70,000 12,094 70,000 RRP Repayments 140,881 95,689 70,000 207,664 98,906 49,906 49,000 Section 8 544,605 4,707,280 521,273 820 4,729,792 4,729,792 Cable TV and Equipment Fund 159,404 571,300 156,896 573 573,235 567,455 5,780 Expendable Library Gifts Trust 156,705 156,705 SUBTOTAL,Special Revenue $1,942,185 $18,166,715 $421,781 $1,588,576 $1,696,586 $3,465,502 $16,957,169 $14,671,456 $2,285,713

G.O. Debt Service $500 $827,597 $9,308 $818,789 $818,789 SUBTOTAL, G.O. Debt $500 $827,597 $9,308 $818,789 $818,789

PERMANENT FUNDS Library Gifts Trust 18,394 18,394 E.B.Lyons Peony Trust 28,014 3,000 28,014 $3,000 $3,000 SUBTOTAL, Trust Funds $46,408 $3,000 $46,408 $3,000 $3,000 CITY OF DUBUQUE FUND BALANCE, INCOME AND EXPENSE SUMMARY FISCAL YEAR 2006 RECOMMENDED BUDGET

PLUS PLUS PLUS LESS LESS REQUIREMENTS BEG. INCOME TRANSFERS PROPERTY ENDING TRANSFERS TOTAL OPERATING CAPITAL FUND BALANCE NOT TAXES IN TAX BALANCE OUT BUDGET BUDGET BUDGET CAPITAL PROJECT FUNDS Street Constr. 797,094 12,416,173 1,342,365 419,862 $14,135,770 14,135,770 Sales Tax Constr. 10,714 1,570,782 1,000 496 996,100 585,900 585,900 Passenger Facility Charge 260,434 31,250 260,434 31,250 Airport Constr 123,024 745,000 278,250 113,274 1,033,000 1,033,000 Golf Constr (700) (1,700) 1,000 1,000 Dog Track/Riverboat Depreciation 1,498,504 167,000 1,665,504 General Const Fund 619,991 1,370,000 7,250,750 619,991 8,620,750 8,620,750 SUBTOTAL, Constr. Funds $3,309,061 $16,300,205 $8,872,365 $3,077,861 $1,027,350 $24,376,420 $24,376,420

UTILITY/ENTERPRISE FUNDS Water Oper. $340,330 $4,864,386 $40,000 $340,727 $1,221,909 $3,682,080 $3,682,080 Water Constr. 4,238 25,000 999,087 181,982 24,443 821,900 821,900 I co SewerOper. 276,905 4,912,365 277,065 1,534,122 3,378,083 3,378,083 .j:::o. I San. Sewer Constr 476,101 60,000 1,476,956 28,612 1,984,445 1,984,445 Stormwater Operating 79,397 890,990 54,397 148,296 767,694 767,694 Stormwater Constr 251,275 3,678,841 9,812 3,920,304 3,920,304 Refuse 114,006 2,471,006 198,257 218,063 2,168,692 2,059,152 109,540 Landfill 8,227,286 2,076,146 8,227,286 45,738 2,030,408 2,030,408 Parking Oper. 168,815 1,803,150 102,456 170,785 292,189 1,611,447 1,611,447 Parking Constr 220,726 30,000 1,300,000 39,302 1,624 1,509,800 1,509,800 General Obligation Bond Fund 261,492 11,176,000 266,742 $11,170,750 America's River Project Fund 3,089,000 3,089,000 3,089,000 Transit 150,905 2,030,276 933,543 150,905 2,963,819 1,848,819 1,115,000 T&A-Self Insurance Reserves 1,198,920 1,198,920 Service Fund Charges 1,049 2,373,929 1,049 4,134 2,369,795 2,369,795 SUBTOAL, UTILITY $11,771,445 $32,713,248 $11,619,883 $11,145,841 $14,661,268 $30,297,467 $17,747,478 $12,549,989 ENTERPRISE FUNDS

TOTAL ALL FUNDS $20,789,663 $97,506,561 $33,095,372 $16,172,986 $18,750,314 $33,095,372 $115,718,896 $72,218,417 $43,500,479 DEPARTMENT AND DIVISION

PRIOR YEAR

ACCOMPLISHMENTS

AND FUTURE YEAR

INITIATIVES

-95- -96- DEPARTMENT/DIVISION: Airport RESPONSIBILITY: Andrew Perry, Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

The Airport is operated and managed by a five-member Airport Commission highly focused on the retention of air service during a period of instability in the airline industry. With many cities losing airline service, a vigorous pro-active ad campaign has been launched to promote the use of the Dubuque Regional Airport. The Commission has worked with American Eagle to increase frequency to four flights and keep passenger loads high with routes that are financially viable.

With the success of the Small Community Air Service Development Grand and the FLY DBQ partnership the Airport will continue to provide and enhance passenger travel needs.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

The Airport will strive to retain viable air service for Dubuque with the completion of the new Master Plan and Benefit Cost analysis for the new terminal area. These tools establish a focus for the Airport Commission, FAA and the City of Dubuque for continuity and expansion of the airport capital projects.

The Airport Manager and his Task Forces continue to work toward established goals while the Airport Commission will maintain and foster the Airport's political and federal agency contacts.

The Airport will continue to work with the corporate General Aviation sector to provide future airside and landside needs. The Airport will also continue its goal of an Airport Industrial Park to provide for future growth and development of Airport property.

The Airport plans to complete an Environmental Assessment for the land acquisition for the new terminal area and maintain existing assets through the Capital Improvement Projects while positioning the Airport to meet the future needs by utilizing their major planning projects to guide potential growth and development of the Dubuque Regional Airport.

-97- DEPARTMENT/DIVISION: Building Services RESPONSIBILITY: Rich Russell, Building Services Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Building Construction and Permit Activity

The Building Services Department issued 1,399 building permits in Fiscal Year 2004, representing a total value of $110,540,936; an increase of 36 permits and an increase of $21,821,998 in valuation from Fiscal Year 2003.

The trend in the number of permits for new dwelling units has stabilized. A total of 205 new dwelling units were added in Fiscal Year 2004. In Fiscal Year 2003, 216 dwelling units were added. In Fiscal Years 2002 and 2001, 165 and 123 dwelling units were added, respectively.

There were 27 new non-residential permits issued in Fiscal Year 2004. This is the same as Fiscal Year 2003. The valuation of new non-residential permits was $40.3 million up from 38.8 million in Fiscal Year 2003.

Plumbing, mechanical and electrical permits issued for Fiscal Year 2004 totaled 2373, an increase of 348 from Fiscal Year 2003.

New boilers were installed in City Hall in Fiscal Year 2004.

Notable building projects started in Fiscal Year 2004 were the new Adams Co., Vessel Systems, Rockford Industrial Welding, the new Kohl's Dept. Store and the new middle school on Radford Rd. Also notable for Fiscal Year 2004, was the 4.8 million renovation of the Walsh Store by the Dubuque Bank and Trust Co.

City Hall Annex (This activity is the responsibility of Cable Franchise Administrator Merrill Crawford)

Rear Entry Portico A metal and glass entry portico was fabricated and installed over the accessible entrance on 13th Street, to shelter persons approaching or leaving via that door. .

Tuckpointing and Sealing of Basement Exterior Stairwell A repeating problem of basement flooding during heavy rains was addressed by tuckpointing and sealing a section of stone foundation along the exterior fire escape stairwell on the north side of the building. The stairwell drain was also enlarged. The combined work seems to have addressed the cause of the flooding, which was the plugging of the drain by sand and mortar leaching from the exposed foundation.

-98- Automatic Electronic Defibrillator An automatic electronic defibrillator was installed in an easily-accessible interior hallway of City Hall Annex and multiple training sessions were offered to employees in its use.

Second Floor Information Services Security Gate A metal security gate was installed in the second floor entry archway to Information Services, so that the area can be locked at times when staff is not present.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Department Technology Laptop computers for field inspectors were purchased in 2002. Software for communication of the laptops to the permit tracking system will be purchased in Fiscal Year 2004, if the Capital Improvements Program is maintained at the approved level.

Department Training Program The department has begun the transition to Combination Inspectors with two inspectors receiving the certification to date. Inspectors continue to attend training sessions and use study aids with this goal in mind.

Operation and Program Review Review of the Building Services Department will begin in Fiscal Year 2003.

City Hall Annex (This activity is the responsibility of Cable Franchise Administrator Merrill Crawford)

Restoration of Custodial Service Levels Among the service level reductions made to City Hall Annex maintenance in 2004 and 2005 was the elimination of certain periodic custodial functions such as window cleaning, and reduction of the frequency of carpet cleaning and vinyl floor treatment, and reduction of custodial service to four nights per week. An effort will be made to restore custodial service to five nights per week, and if possible, to restore the periodic window, carpet and floor treatments to pre-2004 levels.

Ice Melting System Installation of electric ice melting cables in the gutters and downspouts was trimmed from the 2003 roof replacement project. This improvement will be reworked and returned for consideration.

Boiler Replacement The converted hot water boiler in the basement of the Annex will be replaced in the Spring and Summer of 2005. The existing unit has served well beyond its projected life and the replacement will meet modern code requirements while providing more efficient heating technology.

Basement Computer Room Air Conditioning A new water-cooled air conditioning system is needed to serve the growing equipment cooling load of the basement computer server room. This system would be designed to run year-round without unnecessarily cooling other areas of the building, and should prove more efficient than the previous use of ductwork from a larger general AC system.

-99- Front Entrance Canopy & Sign The front panel of the (Main Street) entry canopy is deteriorating. A proposal will be offered to replace the plywood panel and lettering with a more durable material.

Rear Entry Video Security System The rear entrance is the only accessible entrance to the Annex, and yet is remotely located out of view or hearing of employees in the building should a citizen need assistance or a security problem arise. A digital video system will be proposed to monitor and document movement in through this door and the connected entry portico and interior elevator hallway.

-100- DEPARTMENT/DIVISION: Administrative Services/ Cable Television RESPONSIBILITY: Merrill Crawford, Cable Franchise Administrator

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Cable Franchise Renewal First-person negotiations between City and Mediacom representatives continued throughout calendar year 2004 as to the terms and conditions upon which Mediacom's cable franchise could be renewed, under the provisions of federal law. A Franchise Fee Payment Analysis was completed for calendar years 2002 and 2003, and a system Technical Audit was completed as part of the Formal Renewal Process.

City Expo 2004 The Cable TV Division works with the Public Information Office to plan the physical floor plan of the annual City Expo event in the Five Flags Center, and coordinates the move-in and move-out of vehicles and displays, as well as providing for the audiovisual and'display equipment needs of various departments.

Telephone System Additional refinements were made to the City's digital telephone and voice mail systems, and some City buildings migrated from leased lines to the City's own fiber network.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Cable Franchise Renewal Implementation of the terms of the renewed cable franchise, particularly as regards new fiber optic construction and PEG Access equipment upgrades and operational changes, will continue in earnest in FY-2005 and 2006. This will include a major digital conversion and upgrade of Citychannel 8 systems and key local government meeting chambers.

Telephone System Further employee training, scheduled replacement of the voice mail server and backup battery systems, and expiration of the current McLeodUSA contract for local and long distance telephone services will occur in Fiscal Year 2006.

In the spring or summer of 2005, the telephone system components serving the Operations and Maintenance facility on Kerper Blvd. will be moved, reconfigured and upgraded as they are installed in the new Municipal Services Center on Kerper Court.

-101- Opportunitylowa FY 2006 will see key developments and City of Dubuque decisions regarding the Opportunitylowa proposal to finance and build a municipal fiber-to-the-premises open telecommunications network, available to multiple providers of retail cable, telecom and Internet services. The A F.T.T.P. Feasibility Study is expected to provide essential data and projections to justify the City's eventual chosen path regarding a municipal fiber optic utility.

Legal and Marketplace Changes re: Cable and Telecommunications Major legislative and rule changes at both the federal and state levels will affect existing and potential new players in cable and telecommunications markets. Expect further industry challenges to local rights of way control and compensation and to municipal telecommunications utilities. The introduction and marketing of VOIP telephone services by Mediacom and other cable operators will begin in early 2005 and has the potential for rapid growth, accompanied by confusion, consumer complaints and technical problems accommodating such essential features as E-911. Local cable franchise fee revenues should remain relatively flat unless "end­ game" deregulation ends them entirely, or conversely if federal court victories by cities result in the inclusion of cable modem service, telephony, and other services in the definition of "gross revenues" for the purpose of computing franchise fees. That pendulum could swing dramatically in either direction.

ICN, Finley Lease Terms Expire The current lease of a City-owned fiber optic hub building at 1515 W. 3rd Street to the Iowa Communications Network will expire in 2006.

The current lease of City property at 1583 W. 3rd Street to the Finley Hospital (Education Center) will expire in 2006.

The current lease of City property at 1501 W. 3rd Street to the Finley Hospital (Cancer Survivors Park) will expire in 2006.

It is anticipated that mutually-acceptable renewal terms will be negotiated for each of these leases.

-102- DEPARTMENT/DIVISION: City Clerk's Office RESPONSIBILITY: Jeanne F. Schneider, City Clerk

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

City Clerk's Office The City Clerk's Office is a service-oriented department and performs its duties in accordance with various sections of the Code of Iowa and City of DUbuque Code of Ordinances.

The City Clerk's Office is staffed by three full-time employees and is responsible for the official documents and records for the City of Dubuque and also serves as a general resource center for citizens and visitors.

City Council Proceedings Detailed minutes of each City Council meeting along with a table of contents are prepared in the City Clerk's Office and four books are copied and bound.

City Clerk's Office Web Page The City Clerk's Office will continue to develop and maintain a web site for the City Clerk's Office and the City Council with assistance from the Information Services staff and the City's web site provider. A component of the City Clerk's Office web site will be the availability of the City Council agenda with all related documents for access by interested citizens, locally and non-locally. Board and commission applications and information are available on-line, as well as claim forms for citizens to file.

City Council Meetings Agenda packets are prepared in electronic form for all City Council meetings. Public notices of all meetings and hearings have been published in accordance with the Code of Iowa. Printed copies of the agenda for each City Council meeting are mailed to approximately twenty individuals and the electronic agenda is e-mailed to seventy-five individuals. The electronic agenda, complete with all attachments, is available in the City's Public Information network directory for access by City employees. The agenda without attachments is available on the City Clerk's web page for access by citizens. The Library and news media receive the agenda and all attachments on CD-Rom. If a member of the news media does not wish to receive the agenda on CD-Rom, they are provided a hard copy of the agenda and must request copies of individual agenda items as entire hard copy packets are nolonger assembled.

Individuals have been invited and confirmed as invocators for City Council meetings and proclamations have been developed and prepared by the City Clerk's Office.

Applications for various boards and commissions are processed by the City Clerk's Office and individuals are notified of the status of their appointment.

-103- Civil Service Commission The City Clerk's Office has assisted with numerous Civil Service tests, both written and physical agility, for various City positions. The City Clerk has prepared and distributed agendas for Civil Service Commission meetings and the Commission has heard appeals from City employees in accordance with Chapter 400 of the Code of Iowa.

Permits and Licenses The City Clerk's Office processes all beer permits and liquor licenses for the City of Dubuque in accordance with the Iowa Alcoholic Beverages Division. Approximately seventy beer permits and over one hundred beer and liquor licenses are processed each year. Various business licenses are also issued or renewed by the City Clerk's Office in accordance with State and local laws.

The DUbuque Code of Ordinances requires that all dogs and cats within the City limits must be licensed on a yearly basis. During the past year over 5,000 dog licenses and 2,500 cat licenses were issued and rabies vaccinations for all licensed animals were recorded.

The City Clerk's Office also issues bicycle licenses in cooperation with the Police Department.

Special Event Permits During the past year the City Clerk's Office has taken over the responsibility of issuing all special event permits, including fireworks, festivals, block parties, walks/races, parades, City property rental and street closures, fund raisers, rallies, and marches.

Code of Ordinance Review In Fiscal Year 2002, the City Clerk and Corporation Counsel initiated a comprehensive review of the City's Code of Ordinances with an anticipated completion date of spring, 2005.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Computer Installation and Training The City Clerk's Office will continue to perform as a service-oriented department. Computer training will be provided to all staff members to assure efficient and effective implementation of new computer programs that are available, with an emphasis being placed on document imaging and Permits Plus software.

City Clerk's Office Web Page The City Clerk's Office will continue to develop and maintain a web site for the City Clerk's Office and the City Council with assistance from the Information Services staff and the City's web site provider. A component of the City Clerk's Office web site will be the availability of the City Council agenda with all related documents for access by interested citizens, locally and non-locally.

Document Imaging The City Clerk's Office will continue to scan all current City Council packets documents into Laser Fiche for easy retrieval and access and, as time allows, will continue to scan in past documents.

Code of Ordinance Review A comprehensive review of the City's Code of Ordinances will continue with an anticipated completion in 2004 and adoption of the new Code of Ordinances in the spring of 2005.

-104- DEPARTMENT/DIVISION: City Manager's Office RESPONSIBILITY: Michael C. Van Milligen, City Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Administration and Operations

America's River / HotellWater Park (Private Funding) • The Grand Harbor Resort and Water Park. This 194-room hotel featuring Iowa's first 25,000 square foot indoor water park opened its doors on December 3, 2002. Over 170,000 visitors to the facility in the past year from all 50 fifty states.

National Mississippi River Museum & Aquarium • The 65,000 square foot National Mississippi River Museum and Aquarium opened it doors June 28, 2003. Attendance in the first 15 months has exceeded 400,000 total attendees (The first twelve months was 301,000 attendees). The William M. Black dredging boat, one of the attractions at the Museum, has been restored and opened to the public for tours and as a "boat and breakfast" facility. • The National Mississippi River Museum and Aquarium has achieved its status as a Smithsonian affiliate and was recognized as a Coastal Ecosystem Learning Center by Coastal America, a national organization. This is the first time this designation has been given to an inland water location. The National Mississippi River Museum and Aquarium is now analyzing the feasibility of an expansion to their educational facility. •

Grand River Center • The education and conference center has been officially named by City Council as the Grand River Center. This 174,000 square foot education and conference center with 400 stall parking lots adjacent to the facility was opened November: 2003, and a grand opening ceremony for the public was held October 25, 2003. • The city of Dubuque was a host site for the Grand Excursion, a regional re­ enactment of the Grand Excursion that took place 150 years ago to promote through the news media, expansion to the west. This four-day event was headquartered at the Grand River Center and generated over 60,000 people in attendance at the Port of Dubuque and hosted news media from St. Paul, MN, St. Petersburg, FL, La Cross, WI, Milwaukee, WI, New York, NY, San Francisco, CA and London, England.

America's River Miscellaneous Projects •A new road (Ice Harbor Drive) and riverwalk connection around the west end of the Ice Harbor was completed and opened to the public on May 24, 2004. This road and hike/bike trail improves access between the north and south Ice Harbor areas and encourages further development of properties in the southern portion of this area.

-105- • Mississippi Riverwalk Phase I (River's Edge Plaza), 300 foot pier wall; and fishing steps, cascading stairs, and a pavilion have been completed and are open to the public. Construction of tbe Alliant Energy Amphitheater was completed and dedicated in October 2002. This outdoor amphitheater provides musical and theatrical venues for the Tri-State area and has already been used for a Blues festival, Big Band festival and performances by the Dubuque Symphony Orchestra. The rest of the Riverwalk was completed from the north end (Brewery) location down to the conference center site with a ribbon cutting June 12, 2003, The final elements of the Riverwalk including a pavilion, shade structures, landscaping and Ice Harbor Park were completed and a ribbon cutting ceremony was held September 9, 2003; • Streetscape amenities (including historic lighting and landscaping) and street construction for 5th and Bell Streets were completed by the end of September, 2003. The 5th Street extension project was completed earlier as part of the City's building a new 347 stall parking lot to serve the HotellWater Park and conference center overflow parking needs. Plans have been developed for an extension of Bell Street, including construction of Shot Tower Road (replacement of 4th Street) for completion by June, 2005. • Parking lot reconstruction of existing City lots has been completed for three of the four lots. The fourth lot was delayed due to environmental remediation which is anticipated to be completed by 2008. The parking lot has been approved for completion by summer 2005 by the Vision Iowa Board. • Utility improvements including fiber optic installation, storm and sanitary sewer systems and water line installation were completed in September 2004. • Wayfinding signage system was installed on the State Highway system as well as key streets within the city of Dubuque providing directional signage for key attractions throughout the community including the Port of DUbuque. • Fencing replacement and painting and repair of light fixtures for the Third Street Overpass has been designed and contracts will be let in spring 2005 for completion by June 30, 2005. • Property acquisitions completed by the City include Miller Trucking (1.5 acres), Dubuque Hardwoods and Klauer properties (5,43 acres) and Peavy Grain property (5.3 acres). The logging operations have moved off of their sites and the City completed demolition and landscaping on the lots for the October 25, 2003 ribbon cutting ceremony for the Grand River Center. The City received an EDA grant for $2,000,000 which was used for acquisition and relocation of the Adams Company from their Port of Dubuque location (4.55 acres) to the Dubuque Industrial Center West. The City is currently in discussion with developers on this as a redevelopment site. • The historic shot tower has been approved for a $100,000 State grant and a $295,000 Federal Save America's Treasures grant. This is in addition to the $200,000 city funding already committed to shot tower restoration. This project has been approved by the Vision Iowa Board for extension of the completion date to Spring 2006. • Gateway improvements adjacent to the Port of Dubuque have begun and are scheduled to be completed Fall 2005 as approved by the Vision Iowa Board. • The City is in discussion with local residents regarding a public art park at the Port of Dubuque on the former Dubuque Hardwoods site. The park design is subject to final layout of remaining development parcels and its estimated completion of spring 2006 was approved by the Vision Iowa Board. • This project provides for the creation of transient boat docks at the America's River site, in the Ice Harbor and/or in the Mississippi River main channel. A

-106- federal permit is required as part of this process. The estimated completion of spring 2008 was approved by the Vision Iowa Board. • Waterworks Park located at the Hawthorne Street Peninsula is estimated to be started by July 2005 as approved by the Vision Iowa Board. • Pyatigorsk Park located along the Jaycees/Heritage trailhead is estimated to be started by July 2005 as approved by the Vision Iowa Board. • This project provides for significant capital improvements to Five Flags Civic Center. Capital improvements will begin in the Fall 2004 with an estimated completion of Fall 2005 as approved by the Vision Iowa Board.

Other leveraged activity that is happening as a result of the America's River project includes renovation projects such as the $2.5 million Bricktown building at 299 Main Street, Pepper Sprout restaurant at 378 Main Street, Fischer Companies office building at 280 Main Street, a new parking lot developed, a new wine store has opened at 123 Main Street, a restaurant/pub has been renovated on the corner of 151 & Main along with a retail and residential building on this same corner. A five-story, 36,000-square-foot building formerly known as the Weber Paper Company building at 137 Main Street in the Historic Old Main District was -renovated ($2.5 million project) and now houses a publishing company previously located in lIinois as well as other office and retail shops.

A Request for Qualifications was issued June 17 for development of the former Dubuque Star Brewery structure that overlooks the Riverwalk and new Alliant Energy Amphitheater. The City has signed development agreement with The Alexand~r Company from Madison, Wisconsin. Phase I of the renovation is complete which included environmental remediation, interior gutting, reroofing and brick tuck-pointing and restoration. Phase II includes all remaining renovation and signing of a long-term lease. Phase II is anticipated to begin in Spring 2005. The developer is in negotiations with a company for occupancy of the first floor.

Building renovations also have occurred along upper Main Street, with the $2 million plus Town Clock Building renovated for office space, the Grand Opera House, which is completing exterior rehabilitation work, and renovation of a large portion of the 1OOO-block of Main Street by developer John Gronen. This $5 million project includes renovation of 64,000 square feet of space and 14 storefronts for mixed use including 36 residential units, retail and office space. Main Street through the Town Clock plaza has now"been reopened to vehicular traffic. This multi-million dollar streetscape improvement opens Dubuque's downtown and creates better access and circulation for pedestrians and vehicles. A 400-car Fourth Street Parking Ramp opened in June 2002 to serve the Main Street district's anticipated growth and development.

The Northeast Iowa Community College has purchased the Trilog building and completed a $1,917,000 renovation project to make this facility into a new downtown business training center.

River Valley Initiative was a new community effort, lead by the Greater Dubuque Development Corporation and in cooperation with area businesses, to provide the necessary resources to keep Dubuque on the move. With over $2.2 million dollars raised locally, the return on investment is expected to generate 5,100 new jobs in Dubuque and in Iowa and over $200,000,000 in capital investment over a five year period.

The City of Dubuque was selected as one of six cities as an American 2003 Crown Community winner by the American City & County Association. Since that time we have also been selected as an Iowa League of Cities All-Star Community, we have been recognized as one of 50 five­ star communities by Expansion Management Magazine, we have received the 2004 Downtown

-107- Achievement Award from the International Downtown Association for the America's River Project, the Project of the Year award from National Masonry Concrete for the Grand River Center and three awards from the Iowa Departmentof Tourism including Corporate Friend of Tourism, Website of the Year and Attraction of the Year. Dubuque was also one of the first communities in the State of Iowa to receive designation as a Cultural and Entertainment District and one of 20 communities across the United States to be recognized by First Lady Laura Bush as a Preserve America Community.

Economic Development

Development Agreements/TIF • Vessel Systems - $140,000 TIF • Adams Company - $500,000 TIF • Lower Main Development - $150,000 TIF

CEBAIlowa Values Fund • Vessel Systems - $120,000 CEBA / 25 new jobs • Shepherd, Inc. - $100,000 CEBA / 43 jobs relocated to Dubuque • McKesson - $298,000 Iowa Values Fund / 74 new jobs • Medline - $179,000 Iowa Values Fund /41 new jobs

Land Sales/Leases • Vessel Systems - 5 acres DICW 2nd Addition • Adams Company - 10.5 acres DICW 2nd Addition • Bergfeld Farm Lease extended 3 years • Rustic Hills Carriage Lease extended 1 year • Alexander Company - 1 year lease Dubuque Star Brewery

Downtown Rehab Loans • Deferment of DuMA $300,000 loan payments • Gronen Adaptive Reuse - $300,000 commitment • Heartland Financial - $300,000

CDBG Commercial/Industrial Rehab Loans • Alexander Company - $800,000 ($650,000 from CDBG) for Star Brewery

UDAG Loans • Medline - $62,000 • Dubuque Nursery and Landscaping - $20,000

Historic Tax Rebates • Cooper Development

RFP's Issued • Design for Baseball Stadium • Remediation of Petroleum Plume in Port • Design and Engineering for DICW 3rd Addition (Bergfeld Farm)

RISE Applications Submitted • Hwy 32 (SW Arterial)

-108- State Grants Received • $142,655 State Brownfield Cleanup Grant for Petroleum Plume in Port

Federal Grants Received • $200,000 EPA Cleanup Grant for Petroleum Plume in Port

Urban Renewal Districts • Greater Downtown Plan and TIF Ordinance (merger of Downtown and Ice Harbor Districts)

Assignments/Subordination Agreements Accepted • Cooper Development loan subordination • Kemp-Barrick loan subordination • CIGNA assignment to Prudential Financial

Special Projects • Annual TIF Report • Baseball StadiumNision Iowa application, lease, bond issuance • Relocation of Dubuque Hardwoods/Midwest Hardwoods/Miller Trucking • Staff assistance to Dubuque Initiatives

Planned and Managed Growth

Annexation of Growth Areas Planning Services staff analyzed annexation requests and prepared an annexation plan for west side growth areas totaling 704.5 acres. Planning Services staff provided information and coordinated meetings with property owners interested in annexation. Planning Services staff compiled and prepared presentations for the Annexation Plan presented to the State of Iowa's City Development Board in support of this annexation. The City Development Board approved the annexation, but the City of Asbury has appealed their decision.

Downtown Master Plan Planning Services staff provided support for the Downtown Planning Committee for the creation of a comprehensive Downtown Master Plan, which the City Council adopted in 2004. Planning Services staff will assist the City Manager's Office with implementation of the Downtown Master Plan.

Fringe Area Development Policy Planning Services staff provided support for the Joint City/County Planning Committee for the creation of a fringe area policy agreement, which the City Council adopted in 2004.

Historic Preservation The City of Dubuque was the first "Preserve America" community to be designated in Iowa. The City is nationally recognized as a community that protects and celebrates its heritage, uses its historic assets for economic development and community revitalization, and encourages people to experience and appreciate local historic resources through education and heritage tourism programs.

The City of Dubuque had three properties in its jurisdiction that won Preservation at Its Best Awards from the Iowa Historic Preservation Alliance (IHPA).

-109- Planning Services staff received a $100,000 Historic Sites Preservation Grant from the State Historic Preservation Office and a $295,000 Save America's Treasures grant from the National Park Service to rehabilitate the Shot Tower.

Park Development

As part of the City's Neighborhood Reinvestment Strategy, the Leisure Services Department has examined existing parks, and reviewed structures, play equipment, landscaping, and amenities in light of park user's needs. A 10-year plan was developed to renovate each mini­ park and neighborhood park in the system.

Fiscal Year 1994: Focused upon Avon and Comiskey Parks Fiscal Year 1995: Renovation of Hilltop Park Summer 1996: Improvements to Gay, Burden, and Madison Parks Fall of 1996: Focused on Valley High and Jackson Parks Summer 1998: Improvements to Marshall and Jefferson Parks Fiscal Year 1999: Improvements made to Allison-Henderson and Veterans' Memorial Parks Fiscal Year 2000: Eagle Point Park equipment was replaced Fiscal Year 2001: Falk and Miller-Riverview Parks targeted Fiscal Year 2002: Hillcrest and Cleveland Parks Fiscal Year 2003: Murphy and Flat Iron Parks. Fiscal Year 2007: Waller-Cooper Park

In the second phase of the study, the Leisure Services Department and Planning Services Department worked together to identify community-wide needs for types and locations of new· parklands.

Some additions to the park system that have addressed some of the needs:

~ Converted a car repair business at 2819 Pinard St. into Pinard Park.

~ Converted an abandoned housing site at 508 Loras Boulevard into Rocco Buda Sr. Park.

~ Usha Park development has begun at the corner of Pennsylvania and the Northwest Arterial.

~ Development of Teddy Bear Park in Fiscal Year 1999 as a one-acre mini-park serving the immediate neighborhood of the Sunnyslopes subdivision. Landscaping is complete, and a dedication was held in spring 2001.

~ Worked with the school system to develop Valentine Park, an 11-acre property owned by Dubuque Community Schools at the corner of Valentine and Cody Drives. This area serves as an excellent neighborhood park facility while preserving a future site for a school building. The park opened in the spring of 1999.

~ The Mercy Greenbelt, along Catfish Creek at the Northwest Arterial, is a 35-acre parcel of land dedicated to public use as a part of the new Medical Associates development. It will feature hiking paths and nature walks.

~ Completed Northend Trail, an off-street hiking/biking trail from 22nd St. to 32nd St., by using old rail line. This trail will eventually connect with Heritage Trail. The Jaycee Trail between 16th Street and Hawthorne Street, the Power Line Trail between Grandview

-110- Avenue and Julien Dubuque Drive, and the Heron Pond Trail have been completed and added to the park system.

~ Waterworks Park is scheduled to begin July 1, 2005 as an exciting component of the larger riverfront plan, designed to attract a variety of users of all ages to the Hawthorne Street Peninsula and link via the Heritage Hike and Bike Trail to the exciting riverfront development occurring as part of the America's River project.

~ Pyatigorsk Park, at 16th and Kerper Boulevard, is scheduled to begin July 1, 2005.

~ Started development of the Bergfeld Recreation Area, which includes fishing ponds, trail, a pavilion, accessible fishing pier, and rest rooms, located in the Dubuque Industrial Center West.

~ Welu Park, at the end of Welu Drive, development is scheduled in Fiscal Year 2008 and is to be developed as a mini park, including play equipment.

~ Riley Park, off Crescent Ridge, is also scheduled for FY 2006 and will include play equipment, landscaping, and a sidewalk.

~ Harvest View Park, on Asbury Road between Dennis Kitchen Funeral Home and Resurrection Church, is a one-acre site scheduled for play equipment, landscaping, sidewalk, and a gazebo in Fiscal Year 2005.

~ Eagle Valley Park, in the Eagle Valley Subdivision between Roosevelt Street and Shiras Avenue. This park will include landscaping, sidewalk, play equipment, and other amenities and is scheduled for Fiscal Year 2009.

~ Westbrook Park, in the Westbrook Subdivision on Seippel Road, is a three-acre site scheduled for development in Fiscal Year 2009 and will include play equipment, landscaping, walkway, and other amenities.

~ Heron Pond, a fishing pier was installed at this location to provide additional recreation options at Heron Pond and along Heritage Trail.

Housing and Community Development City Council has established an objective of encouraging homeownership in the City's downtown neighborhoods and the Housing and Community Development Department has several initiatives that respond to this goal. There are currently a number of programs in place to encourage homeownership.

Community Development Activity The Community Development Commission approved $149,605 in Community Partnership (cp2) Program awards.

In reallocating prior year CDBG funds, the Commission approved $154687 to the Historic District Public Improvement Projects Program, which had not initially been funded due to budget cuts. The funds provided for the installation of historic street lights on Loras Boulevard from Bluff to Prairie Streets.

-111- Neighborhood Activities The Neighborhood Grant Program provided $21,882 in assistance to five neighborhood organizations and eight non-profit community organ~;;:::ations to support 23 different programs and projects in low-moderate income areas of the City.

Other Community Development Activities Other CDBG assistance throughout the year was provided to the Information and Referral and Child Care Resource and Referral programs administered by Project Concern; Dubuque Area lifeTime Center; the Washington Tool Library; construction of accessible curb ramps; asphalt street overlays on streets in low-income areas; and sidewalk improvements for low-income property owners.

Housing Rehabilitation Activity We continued administration of a number of housing rehabilitation-loan programs, for both owner-occupied housing and rental units. Eight apartments were completed or in the process of rehabilitation. CDBG-funded rehabilitation assistance was provided to 41 low-moderate income homeowners, using a combination of City programs.

Work on the Five Points comprehensive neighborhood revitalization project continued. The first home was completed and sold to a qualifying first-time buyer household. An adjacent two-unit has also completed rehabilitation work. Three properties are being rehabilitated under the HEART ("Housing Education and Rehabilitation Training") Program.

The Housing Department successfully applied for a $100 000 State Housing Trust Fund Program grant from the Iowa Finance Authority (IFA) to subsidize purchase of the three HEART project properties.

Home Purchase Assistance The Housing Department places a high priority on assistance to first-time homebuyers. In FY04, 19 homes were financed with COBG funds, for first-time purchasers, and totaled $95,000 in City investment. We received a $100,000 award from the Des Moines Federal Home Loan Bank (FHLB), in support of our first-time home buyer . assistance programs.

Section 8 Housing Activity The primary means of directly providing affordable rental housing is available through HUD's Section 8 Program, which offers rental assistance to lower-income families. The Housing Department provides area landlords approximately $4 million annually, with funds received from HUD, to subsidize rents for 1,085 tenant households. This program has been operational in Dubuque since 1976 and operates at capacity.

Housing Code Enforcement CDBG funds are used for housing code enforcement in targeted downtown neighborhoods. More that 590 inspections and re-inspections of rental units were completed, with a total of 8000 violation notices cited and/or corrected.

Lead Paint Hazard Reduction Dubuque's Childhood Lead Paint Poisoning Prevention Program continued operations with renewed HUD funding. 117 units were inspected and 9 completed, after the grant was received in October 03. A $2.4 million award was received from HUD's Lead Hazard Reduction Program to continue efforts to reduce lead paint poisoning.

-112- Additional Program Activities

The Crime Free-Multi Housing Program, jointly sponsored by the Housing, Police, Legal and Human Rights Departments, was again offered to landlords in FY04.

The City Council approved a second "affordable housing subdivision," offering financial incentives to developers who agree to limit lot and house sizes. The purpose of this initiative is to produce new single family homes affordable to moderate-income families. The new Westmark Subdivision is located on Dubuque's far west side. A third affordable subdivision was in planning stage at fiscal year-end.

Sixteen houses on 32nd Street will be purchased and either demolished or relocated in order to double the storage capacity of the existing storm water detention basin. In addition to acquisitions, staff worked with the families to provide relocation benefits and to assist them in locating and moving into replacement homes.

The Council approved expansion of the urban revitalization district for the Davis Place complex on Garfield Avenue. In this case, the developer, Scott Potter, will construct another single-room occupancy (SRO) facility for indigent men, adding 12 rooms to the complex now providing 36 rooming units.

Transportation System

DMATS The Dubuque Metropolitan Area Transportation Study, known as DMATS, is composed of staff and elected officials of local governments charged with long-range transportation planning. DMATS is focusing their attention and planning expertise on the significant challenges involved in meeting the transportation needs of the future. Current projects include increasing safety and capacity on US Highway 20, the continued development of the Southwest Arterial, and the Downtown Dubuque Transit Alternatives Analysis.

DMATS and City staffs are coordinating with consultants to coordinate the many projects currently underway on US Highway 20 (US 20). Improvements currently under study include short-term intersection improvements to decrease side friction, traffic signal coordination, and a long-range corridor study. The short-term improvements will increase capacity while still not precluding an alternative to develop US 20 into a full-freeway design to meet future traffic needs. An Air Quality grant was awarded to implement these delay-reducing improvements.

Mississippi River Bridge Crossing The location study and environmental assessment are complete and final design is underway. The Iowa and Illinois Departments of Transportation (DOT) have selected the firm of Parsons of Chicago, Illinois, in conjunction with WHKS of Dubuque, to perform the final design of the bridge, bridge approaches, and roadway improvements.

The Iowa and Illinois DOT have selected the Tied-Arch design to proceed with final design (30% completed). Cost estimates for the entire project are $165 million. This leaves a funding gap of $130 million. The Iowa and Illinois DOT expectto authorize all funds for Phase I in federal fiscal year (FFY) 2003. Phase I includes right of way (ROW) acquisition and utility relocation in Iowa, the complete design, and possibly some ROW acquisition in Illinois.

The City and DMATS will continue working with Iowa and Illinois DOT and federal legislators to obtain additional funding for the completion of the bridge. Assuming funding can be secured for -113- the construction of the balance of the construction costs, it would be possible that the entire project could be completed and opened to traffic by calendar year 2008.

US 20 Intersection Improvements The consultant, Howard R. Green and Associates (HRG), is currently working on several projects to increase the capacity of US 20 through Dubuque. These improvements are intended to be a short-term solution to the existing and forecast congestion on US 20. HRG has multiple contracts for the projects and is working under the combined guidance of City, DMATS, and Iowa DOT staffs.

HRG is in the final design stage of the traffic signal coordination for the intersections on US 20 including Devon Drive, the Midway Motel entrance, JFKJCedar Cross Road, Wacker Drive, Century Drive, Crescent Ridge, NW Arterial, aide Highway Road, and the New Menards. The improvements will include new signal equipment, fiber-optic interconnect, and coordinated timing. Construction is scheduled for completion by the end of October 2003.

The intersection improvements project includes the intersections of Devon Drive, Brunskill Street, JFKJCedar Cross Road, Wacker Drive, and Century Drive. Final plans are scheduled for completion Spring 2003 with ROW acquisition (minor) beginning at that time. Improvements may include additional turn lanes between NW Arterial and Olde Highway Road, raised medians, and new alignments of intersections. Construction is scheduled for completion in October 2004.

The concept of this project is to extend University Avenue to intersect with US 20 at the Theisen's entrance. This is intended to relieve the complex and overloaded intersection of JFKJCedar Cross Road/University Avenue and US 20. This project is in the development phase, and HRG is working on the Phase II environmental site assessments, architectural/historical and archaeological reviews. A public meeting was held in spring 2003 to solicit public input.

Iowa DOT has awarded a contract toHDR, Inc. to design the long-term (Year 2025) improvements to US 20 from the Peosta Interchange to Devon Drive. The intent is to design this improvement as a freeway, although right-of-way or other issues may preclude such a high priority improvement. The desired outcome is a system that would provide adequate access control and improved capacity for both local and through traffic. The study has been scaled back due to budget concerns and is currently focused on the rural section of the project. Currently no funding is provided for this construction project.

The Iowa DOT has established a Corridor Protection Zone on US 20 from Devon Drive to the City of Peosta. The intent is to keep future major developments from encroaching into the proposed future right-of-way, thereby causing additional right-of-way and relocation costs when the project is built. The Iowa DOT Commission must approve any improvements proposed within the Corridor, or the property must be acquired by the Iowa DOT.

Southwest Arterial The City has taken over the administration of the Environmental Impact Statement (EIS) with HDR and will carry it through to a Finding of No Significant Impact (FONSI).

In an effort to reduce the cost of the project, the project coordinating committee working with HDR, has lowered the design speed and the interchanges for the phase I construction. This will substantially reduce the grading cost and will limit a significant amount of environmental and

-114- archaeological issues in the Corridor. ROW will be acquired for the future construction of a four­ lane divided highway and for the future interchanges when the need arises.

The environmental assessment work continues and is scheduled for completion in spring 2004. Preliminary design began in 2003 and takes two years. Final design is scheduled to begin spring 2005 and to be completed early in 2007. Construction may begin at that time should the remaining funding be secured. Iowa DOT has programmed $21 million through 2006 and DMATS has programmed $7 million through 2009. Staff is currently working to raise the additional estimated $43 million needed to complete the phase I construction by fall 2009.

Downtown Dubuque Transit Alternatives Analysis The City entered into a contract with URS/BRW of Minneapolis to perform this study to examine transit alternatives to provide transit access to the Riverfront and increase circulation throughout the downtown. The findings of the study identified the need for a rubber-tired system. In response the city purchased three, heritage Trolleys to service this circulation between downtown and the Port of Dubuque. Service of these routes began in May 2004.

Street Improvements In 1988, the community approved a local option sales tax, with a portion of the revenue allocated to help defray property tax assessments. As a result, the City has been able to tackle an ambitious multi-year effort to rebuild and to upgrade our surface transportation infrastructure in all corners of the City. Prior to 1995, the City spent $2.1 million each year on the street program. During the 11-year period from 1995 through the annually adopted five-year capital improvement program through 2006, the City now averages more than $7 million annually in the street program. This doesn't include asphalt overlays by City crews. In that 11-year period, more than 50 percent of city streets will be resurfaced or reconstructed

Neighborhood Reinvestment Strategy

The City of Dubuque is strengthening its commitment to the quality of life in our neighborhoods. The comprehensive Neighborhood Reinvestment Strategy is a concentrated effort to revitalize Dubuque's neighborhoods. The Neighborhood Development Specialist serves as a communication link between the neighborhoods and various City departments and works to make City resources more responsive to specific neighborhoods needs and problems. For example:

• The Neighborhood Recreation Program is using our parks, churches, and schools to bring youth recreation opportunities into targeted neighborhoods. Dubuque youth participated in the City's After School Recreation Program at Prescott and Audubon Schools, in the Open Gym Program, the City-sponsored Four Mounds Summer Day Camp, Community Basketball League, and Play Time for Tots.

• In 2004, 23 different grants were awarded to neighborhood associations and non-profit organizations operating within the City's low- and moderate-income neighborhoods to fund programs supporting youth and families such as family nights, mentoring/tutoring programs, summer youth programs, and neighborhood beautification projects.

• The Five Points comprehensive neighborhood revitalization project is underway. The project was designed to provide sufficient incentives to encourage all owners in the neighborhood to rehabilitate their properties, to restore the appearance of the area to its turn-of-the-century origins.

-115- • The Historic Bluffs neighborhood has worked closely with property owners, residents, and the City of Dubuque to improve the quality of life for the neighborhood through promotion of safety, property improvements and enhancements of the neighborhood's historic assets. This year saw the complete of Phase I of the Loras Boulevard Historic Lighting Project.

Implementation of the Police Department's Community Oriented Policing Program continues to have a positive impact on the neighborhoods. The COP officers are building relationships in the community as they enlist the aid of other City departments to solve problems within their neighborhoods through the building of trust relationships. The Crime Free Multi-Housing Certification Program was held again in 2004 to assist landlords in making their properties safer through an applicant screening process, physical security measures and other actions.

The City has placed a new emphasis on personal empowerment in the neighborhoods, and is seeing early success working with neighborhood groups to provide leadership training for neighborhood association leaders. Another neighborhood association were organized in 2004; the Terrace Heights Residents Association. Neighborhoods have direct input into the allocation of Community Development Block Grant Funds through the City's Community Development Advisory Commission. The Commission membership includes neighborhood leaders, and neighborhood leaders are frequent participants at City Council public hearings, Community Development Advisory Commission meetings and hearings, Zoning Advisory Commission meetings, the Historic Preservation Commission, and Citizen Advisory Commissions.

In these and many other ways, the City joins in partnership with neighborhood organizations, individual families, community organizations, human service agencies, and business organizations, to nurture and improve the quality of life for all in our community.

Other Accomplishments

Fiscal Responsibility As public servants, City employees accept and honor the obligation to assure that our own house is in order, so that we can take pride in delivering quality City services at the lowest possible cost. Property tax was decreased by 5 percent for the average homeowner in Fiscal Year 2003. While property taxes decreased, there was a 1 percent increase in sewer rates, a 2 percent water rate increase, and monthly refuse rates decreased by $.30 per month to $7.20 effective with implementation of the Pay As You Throw Program. In Fiscal Year 2003, the average homeowner will pay $25.57 less for City Services than they did in Fiscal Year 1995, including property taxes, sewer rates, water rates and refuse collection fees.

On a larger scale, we are pursuing a mandate of the City Council to review all City services. This process includes reviewing each operation's methods, effectiveness, and cost efficiencies, compared to other options such as outsourcing, public-private partnerships, and incorporation of new methods and technologies.

Fiscal Year 2006 reflects changes to City of Dubuque assessed valuations. Property reappraisals were completed by the Dubuque City Assessor's office and went into affect January 1, 2004. The Fiscal Year 2006 assessed valuation for the City of Dubuque is based on the reappraised valuations. Residential property valuations increased 6 percent, Commercial property valuations decreased 2.7 percent and Industrial property valuations increased 19.4 percent. In order for the City to not increase the average homeowner's property taxes for the eleventh consecutive year, in fact, in five of those years there have been property tax -116- decreases, the average home value was increased 6 percent when determining the Fiscal Year 2006 property tax rate of $9.6991/$1 ,000. This means the property tax rate will decrease by 3.7%. Lowering the rate reflects no property tax increase for the average homeowner.

The City's portion of the property tax rate has gone from $14.5819 in Fiscal Year 1987 to $9.6991 in Fiscal Year 2006 per thousand dollars of assessed value; a decrease of $4.88 or 33.5 percent. A comparison of the City of Dubuque's property tax rate as projected for Fiscal Year 2006 with the other eight largest cities in Iowa shows Dubuque ranks ninth out of nine, an improvement from last year's position of eighth out of nine cities.

The Moody's bond rating was improved from Aa3 to Aa2 which should improve the interest rate paid by the city on bond issues.

Technology Use New technology is being adapted to increase operational efficiency in most City departments. Some examples of the this new technology include:

~ An information-filled City of Dubuque web site that will make use of complaint-tracking technology allowing an inquiry by the public to be followed through a department ~ Wide area computer networking utilizing state-of-the-art fiber optic and wireless communication systems providing for efficient information exchange; ~ A multi-year plan to implement a computer-based Geographic Information System (GIS), which will involve all City departments and partner applications with Dubuque County and with local utilities and businesses; ~ Implementation of permit tracking and complaint handling software; ~ The equipping of police vehicles with mobile computers, permitting instant access to state vehicle records and other law enforcement databases; and ~ The use of document imaging to reduce storage space requirements and improve access to City records, the creation of a web page; and ~ Updating and continuation of the successful and efficient paperless agenda system; and ~ Implementation of software tools and policies that will enable standard desktop configurations throughout the City resulting in a highly maintainable and secure computing environment.

The City of Dubuque is committed to delivering the highest quality of local government services at the most reasonable cost. This is accomplished by planning to meet future needs, being input-oriented, being problem solvers, and building partnerships.

Wayfinding Signage The City work with the Iowa Department of Transporation to complete the design and installation of wayfinding signs along the State highway system and throughout the community. Approximately 150 signs were installed.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Annexation Study Update Planning Services Planning Services staff coordinated data collection for the selected consultant, Veenstra & Kimm. The study will be completed in early 2005.

Update of Zoning & Subdivision Ordinances

-117- Planning Services staff will coordinate with staff, a citizen advisory committee, and a consultant to update the Zoning and Subdivision Ordinances. A consultant will be selected in early 2005.

Downtown Dubuque Transit Alternatives Analysis The City will be working with consultants to prepare a need assessment for the location of an intermodal parking facility to be located at the Port of Dubuque.

Pedestrian Wayfinding Signage As a continuation of the wayfinding signage program for Dubuque, the City is working with representatives from the Convention and Visitors Bureau and DUbuque Main Street Ltd. to develop a pedestrian signage program for citizens and visitors walking throughout the downtown.

Housing and Community Development

Initiation of a comprehensive neighborhood revitalization strategy for the Washington Street Neighborhood, encompassing a 55 square block area from 11 th to 22nd Streets. This project will include emphasis on increased owner occupancies, intensified rehabilitation-loan activities, targeted code enforcement, public improvement projects and development of neighborhood leadership.

Completion of the HEART Project, which is a partnership including the Dubuque Community School District, the Four Mounds Foundation, Four Oaks and the Housing Trust Fund Commission.

Completion of acquisitions of 32 nd Street homes, for expansion of the existing stormwater detention basin, part of the Bee Branch Basin mitigation plan.

Completion of the HUD-required 2006-2010 Consolidated Plan for the community development program.

City Operational Reviews The City will continue to work on the service reviews of all municipal departments. Reviews were completed for Transit, and Operations and Maintenance. Reviews currently underway include Health Services and Library. Reviews scheduled for initiation this year include Fire, Disaster Services, Building Services, Legal, City Clerk, Finance, Airport, and Engineering.

Stormwater Management A significant rainfall event occurred in the spring of 1999 that resulted in a Presidential Disaster Declaration for Dubuque County. The storm produced in excess of four feet of stormwater in city streets and five feet of stormwater in basements resulting in flood damage to hundreds of homes in the City of Dubuque. Another Presidential Disaster was declared again in June 2002 affecting many of the same homes. At the time of the 1999 flood, the City was in the process of building a Stormwater Management Plan. In July 2001, HDR Engineering of Omaha, Neb., the consulting firm hired by the City to produce the Drainage Basin Master Plan, presented its findings to City Council. The study found over 1,150 homes and businesses are in the 100-year floodplain.

The Drainage Basin Master Plan studied two key areas: North Forth of Catfish Creek and the Bee Branch Drainage Area. North Fork Drainage Basin Solution includ;es providing additional storage upstream of the Northwest Arterial by excavation (completed), increase channel capacity from Northwest Arterial to Pennsylvania Avenue and increase the capacity of drainage at Rosemont and Keyway. Cost: $1.6 million. The Bee Branch Solution includes constructing a

-118- 150-foot wide, open channel floodway to increase stormwater flow capacity for the 1DO-year event. This is the most cost effective solution to reduce the 1DO-year flooding in the lower reaches of the Bee Branch. Cost: $17.1 million.

Stormwater The City has worked with Citizen Advisory Committee to identify and implement a stormwater utility rate to fund necessary stormwater improvements and develop a stormwater maintenance program. A Citizen Advisory Committee was also used to help determine a recommendation for the Drainage Basin Master Plan. Included in this plan is restoration of the Bee Branch Creek and a proposed alignment. A Bee Branch Creek citizen advisory committee will work with the city staff and consultants to recommend a final design. Other stormwater improvements included completion of the Carter Road Detention Basin.

Staff is developing a program to provide ongoing maintenance of the city's existing stormwater detention cells. Maintenance of these detention cells will allow them to continue to operate at capacity and maintain their longevity as part of the overall stormwater drainage system for the city of Dubuque.

Street Program Prior to 1995, the City spent $2.1 million each year on the street program. During the 11-year period from 1995 through the annually capital improvement program through 2006, the City now averages more than in the street program.

Administration and Operations The City has worked with partners to stimulate development in downtown and the riverfront. The result has been the creation of the $188 million dollar partnership known as America's River. Additional development is possible on vacant parcels and present an opportunity to partner with property owners such as Dubuque Initiatives and others to create this development. City staff will work with Dubuque Initiatives and others on retail recruitment for the downtown and riverfront. Retail shopping is the #1 entertainment option in the country. Commercial development provides both property tax and sales tax returns to the City, County and School District. Included in the FY 2006 budget is funding to Dubuque Initiatives for marketing the community with an emphasis on downtown developoment. Also included is funding for graphic design services to develop a comprehensive image campaign for the City of Dubuque to assist in marketing and recruitment.

The City places a high priority on customer service and quality service to citizens. City staff will be working with all city employees to provide ongoing customer service training techniques that would provide skills to City employees to provide the best service to the citizens of Dubuque.

Information Management The City has made significant investment in the development of a quality Geographic Information Systems (GIS) database. The city currently uses the GIS system in several city departments including Engineering, Water, Planning Services and Information Services. The GIS system contains critical parcel information such as parcel identification number, legal descriptions, square footage of land and buildings, zoning classification, street names, center line and 2-dimension contures of the city terrain. City staff will be working with economic development partners to expand the existing system to provide additional data layers that include accessed valuations, building permits, traffic modeling, redistricting, reprecenting, census data and 3-dimension modeling of terrain contures for use in grading request and stormwater remediation issues. These expanded uses will be valuable tools to expedite review of public and private development within the city of Dubuque.

-119- DEPARTMENT/DIVISION City Manager's Office/Personnel RESPONSIBILITY: Randy Peck, Personnel Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Occupational Safety

• Pre-employment and random testing, as well as the required training, was provided to employees covered by the Federal Drug and Alcohol Testing regulations.

• In accordance with OSHA regulations, the required training and certification activities were conducted for confined spaces and blood borne pathogens.

Health Care Committee

In October of 1992, the City of Dubuque established a Health Insurance Task Force to assist in identifying ways to contain the increase in the cost of providing health insurance in a cooperative working environment with union, non:-bargaining, and management representatives. In February of 1995, the City received a grant from the Tri-State Health Care Coalition to provide financial assistance in examining and working together on health benefit issues. The assistance was primarily in the form of consulting services provided by Mr. Bill Hembree of the Health Research Institute. The Health Research Institute is a non-profit, independent research­ based organization providing health care cost containment and health improvement policy planning assistance to major private and public employers, unions, and coalitions. One of the first assignments of the Task Force was to develop its Mission, Vision and Goal Statement. Following completion of this task, the Task Force focused its efforts on removing health insurance from the collective bargaining process. In February of 1996, the City Council and all of the City's collective bargaining units approved an agreement that removed health insurance from the collective bargaining process and placed it in the hands of the Joint Labor Management Health Care Committee, which is the new name for the Health Insurance Task Force. The Health Care Committee has implemented a wellness program, negotiated reduced rates for the life insurance program, and achieved a significant savings in the prescription drug program through higher drug discounts and reduced administration and dispensing fees. In Fiscal Year 2003 the Health Care Committee reduced the cost of obtaining benefit consulting services by selecting a new benefit consultant and obtained a savings in the prescription drug program by introducing higher co-pays and a drug formulary for all employees with the exception of employees represented by the Firefighter's Association. The Health Care Committee's membership includes the Transit Union, Teamster's Union, Operating Engineer's Union and Non-Bargaining Unit representatives. In Fiscal Year 2004, representatives of these three unions and non-bargaining unit representatives agreed to discontinue payment by the City of the single dental plan, exclude certain prescription drugs from coverage, increase co-pays in the HMO Plan for office visits, in-patient hospital admissions, urgent care visits and emergency room visits and replace the HMO and Indemnity Plans with a Point-of-Service Plan.

-120- Labor Management Committee

This year a Labor-Management Committee was established to review the possibility of adding another deferred compensation plan. Civil Service Test Preparation

Department managers were assisted in the preparation of a variety of tests for Civil Service positions.

Collective Bargaining

Four contracts were open for negotiations this year. The settlements were consistent with the City Council wage guidelines. The firefighter's settlement also included placing the HMO and Indemnity Plans with a Point-of-Service Plan, increasing co-pays for office visits, in-patient hospital admissions, urgent care visits and emergency room visits.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Health Care Committee

The Health Care Committee will continue to work toward accomplishing its goals and objectives. The committee will be called upon to consider options to mitigate some of the increase in the cost of providing health insurance. The Health Care Committee agreement expires on June 30, 2005.

Occupational Safety

The Safety and Health Committee will continue to meet on a regular basis to address a variety of safety issues. In addition, an evaluation to determine our level of compliance with OSHA standards will be performed by a loss control expert.

The required training and re-certification activities will continue as it relates to confined spaces and blood borne pathogens. The appropriate types of testing and training will continue in order to meet the requirements of the drug and alcohol testing regulations.

Collective Bargaining

In Fiscal Year 2005, five collective bargaining agreements will be open for negotiations.

Labor Management Committees

Opportunities to use labor management committees to address collective bargaining and workplace issues will continue to be pursued.

Civil Service Testing

Assistance will continue to be provided to department managers in the preparation of tests for Civil Service positions.

-121- DEPARTMENT/DIVISION: City Manager's Office RESPONSIBILITY: Susan Gwiasda, Public Information Officer

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Public Relations The Public Information Office works to enhance communications and increase public awareness about programs and services provided by the City of Dubuque. Through special events, public service announcements, press releases, serving on boards and committees, and other methods, City services, projects, and activities have been showcased and publicized. The City of Dubuque's Speaker Bureau continues to provide City staff as speakers to the community-to provide more information about City programs and services. The Facility Tour program provides information to groups about City Hall and the Annex, in addition to the other City departments.

Internal Communication The Public Information Office coordinates orientation programs for new division and department managers, as well as for new City Council members. More than a dozen retiring City employees were presented with "Memory Books," in recognition of their work for the City of Dubuque. All City employees receive the Spirit Times employee newsletter, which is distributed with paychecks and edited by the Public Information Officer. The annual Employee Recognition Luncheon, organized by the Employee Recognition Task Force, is held every April and commends City employees for their contributions to an effective and efficient local government. Employees are recognized for their years of service (in five-year milestones) and given an employee gift. The luncheon, which features department and division manager as the food servers on two separate shifts, is experiencing increasing attendance each year. For the first time, the City invited retired City employees to join the Spirit lunch, and more than 50 retired City of Dubuque employees attended.

External Communication The new City newsletter, "City News," began distribution with the September issue inserted into utility bills. Not only has this eliminated nearly $14,000 annually in postage, the cost per issue has been substantially reduced. The new newsletter is black and white, and features four pages. It will be distributed six times per year, and contains common features such as the City Manager's column, calendar of events, important dates, new programs and services, and new and retiring employees.

The Public Information Officer and the Information Services Manager continue to monitor the City of Dubuque web site, which continues to attract web surfers. News and information posted on the site is reviewed, and departments are encouraged to use the web site as a tool for information distribution. This user-friendly web site provides a 24-hour City Hall filled with information, ordinance, forms, and e-mail addresses for enhanced customer service. Additionally, the Public Information Office has booklets, maps, and brochures available for distribution. The office continues to seek local, state, and national recognition for City staff and departments by featuring innovative projects and employees in award applications.

-122- Media Relations The Public Information Office provides a central contact for all media inquiries and information­ seeking, and acts as a liaison between media and interview requests. Press releases concerning City services, updates, and announcements are issued on a regular basis. Additionally, the Public Information Officer routinely contacts local media to keep up-to-date media contact lists, and to determine immediate and future information needs.

Partnerships The Public Information Office continues to work closely with the Dubuque Area Chamber of Commerce, the Dubuque County Historical Society, Platinum Hospitality Group, and Dubuque County on many facets of the America's River project. Additionally, the Public Information Officer serves on the America's River marketing committee, which is focused on attracting leisure and convention travelers to the Port of Dubuque.

The Public Information Officer also served on the Grand Excursion planning committee, which attracted more than 60,000 people to Dubuque. Additionally, the Public Information Officer .serves on the Convention and Visitors Bureau Advisory Board, which has conducted several successful tourism-marketing campaigns and is spearheading the community-wide directional signage initiative.

Award Acknowledgements Once again, this has been an extremely successful year for awards bestowed on the City of Dubuque, its staff and staff of partner agencies. The City of Dubuque received international recognition for the economic development efforts of the America's River project by the " International Downtown Association. Additionally, the Iowa League of Cities honored Dubuque and the America's River project with its All-Star Community Award. Dubuque received recognition from Dubuque Main Street Ltd and Main Street Iowa for downtown development, and the American Institute of Architects, Iowa chapter, named the Eagle Point Park Shelters to a distinguished list of notable buildings. The City of Dubuque has been recognized as one of 50 five-star communities by Expansion Management Magazine and has received the Project of the Year award from National Masonry Concrete for the Grand River Center and three awards from the Iowa Department of Tourism including Corporate Friend of Tourism, Website of the Year and Attraction of the Year. Dubuque was also one of the first communities in the State of Iowa to receive designation as a Cultural and Entertainment District and one of 20 communities across the United States to be recognized by First Lady Laura Bush as a Preserve America Community.

Other Committees/Boards The Public Information Officer serves on the Main Street Ltd. Downtown Business P.M. Sub­ Committee, the Girl Scouts Nominating Committee, the Women's Awareness Day Planning Committee, Prescott School Business Partnership contact, and is a member of the Friends of the Community.

Special Events The Public Information Officer coordinated several special events, often in conjunction with other departments and partner agencies. Many of these events acknowledged a significant milestone for a project, or provided information about a department initiative. These events included:

Legislative Dinner - November 2004

"Light Up Loras" Recognition Event - October 18, 2004

-123- Boards and Commissions Orientation - October 12, 2003

City/County Session - Community Action Academy - October 7, 2004

Table Mound/Bryant School Playground Ribbon-Cutting - September 30, 2004

Carter Road Detention Basin Recognition Ceremony - September 20, 2004 Tri-State Tourism Summit - September 10, 2004

Washington D.C. Congressional Staff Visit - August 2004

Municipal Services Center ground-breaking - July 19, 2004

Grand Excursion - June 27-29,2004

Environmental Protection Agency Visit - June 2004

Gateway Signs Ribbon-Cutting - June 2004

Nigerian visitors/IRIS - June 2004

Fannie Mae/Housing Development Opportunities Workshop - May 2004

Grand River Center Art Exhibit Open House - April 2004

City Expo and Spirit Lunch - April 2004

Iowa Department of Transportation - April 2004

Southwest Arterial video production - March 2004

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Public Awareness The Public Information Office will continue to enhance communication programs and increase public awareness about City of Dubuque activities, programs, and services. The office will continue to seek out local, state, and national awards recognizing superior service and innovative departmental programs. Expanding community partnerships and improving communication with residents continues to be priority.

WebSite The official City of Dubuque web site, launched at City Expo 2002, continues to be an important tool for information dissemination. Through working closely with the Information Services department, the web site undergoes periodic reviews and is updated and maintained. We continue to explore more interactive uses for the web site, including in e-government activities such as bill paying and on-line registration. These services will simply enhance - not replace ­ existing face-to-face service -offered by phone or personal visit to a particular department.

Preparing for Grand Excursion II Through local partnerships with the America's River Corporation, the Dubuque County Historical Society and the Dubuque Area Chamber of Commerce, the Grand Excursion was held. This -124- three-day event located at the Port of Dubuque showcased the riverfront to over 60,000 guests. City staff will work with these same partners to implement Grand Excursion II in May 2005 and to work to establish this as the signature event at the Port of Dubuque.

Promotion of City Services The city of Dubuque provides a variety of services, programs and opportunities for citizens and potential citizens of Dubuque. City staff will work with partners to develop quality marketing materials showcasing Dubuque services. Included in this effort will be the development of a long-term approach to marketing our community and developing an image campaign for Dubuque.

City News The City newsletter was inserted in utility bills and distributed to approximately 21,000 Dubuque households. The format is smaller and simpler than City Focus, but will contain time-sensitive information on a bi-monthly basis to Dubuque residents. City staff will work with a graphics firm to redesign and reinstate City Focus, an attractive quarterly magazine for the city of Dubuque. City Focus will provide helpful information to get Dubuque residents in touch with their city government.

Performance The city holds a successful annual event entitled City Expo. This event provides and opportunity for city departments to showcase services and to rollout new initiatives developed by the City. City staff will work to incorporate an Annual Report to the public in conjunction with City Expo to provide information to citizens of Dubuque.

Citizen Survey The guiding management principles for the city of Dubuque include being problem solvers, building partnership and input-oriented. Included in these principles is the role of citizens in providing ideas and information on city government. City staff will work to develop ways to survey citizens and give them opportunities to provide input and feedback on the services the City provides.

-125- DEPARTMENT/DIVISION: City Manager's Office RESPONSIBILITY: Jerelyn O'Connor Neighborhood Development Specialist

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Neighborhood Association Capacity Building The Neighborhood Development Specialist facilitated the development of another neighborhood organization in FY 2004 - the Terrace Heights Residents Association. There are currently ten neighborhood organizations in the City and efforts are underway to organize the South Grandview Neighborhood Association. These associations have actively worked in cooperation with the City to improve the quality of life in their neighborhoods by promoting community building, crime reduction, communication, beautification efforts, and programs to support youth and families.

The specialist provides ongoing technical support at neighborhood association meetings and events and is in attendance at nearly every neighborhood meeting and event. Assistance is provided in planning neighborhood events, arranging speakers, follow up on issues raised, and communication with other city staff to provide information and/or resolve issues.

The specialist has provided persons interested in organizing with an extensive resource manual which provides information on everything from "reasons to organize" to sample by-laws. During FY 2004, organizing information and assistance was provided to interested neighbors and business owners in the Hilltop Neighborhood (University Avenue area), Old Main Street Neighborhood, South Grandview area, and the Embassy West area. Although at this point, these four neighborhoods have not formally organized into neighborhood associations, meetings were held and strategies were developed to address areas of concern.

Through an emphasis on capacity building and personal empowerment in the neighborhoods, neighborhoods now have direct input into the allocation of Community Development Block Grant Funds. The Commission Development Advisory Commission membership includes neighborhood leaders. Neighborhood leaders are frequent participants at the City Council public hearings, Community Development Advisory Commission meetings and hearings, Zoning Advisory and Historic Preservation Commission meetings. Several neighborhood association leaders have also assumed positions on various city boards and commissions and have been active members of citizen task forces such as the Bee Branch Citizen Advisory Committee.

Communication - Internal and External Provide ongoing communication link with city services to ten neighborhood associations.

Continued participation in Dubuque's Community Oriented Policing Internal Working Group-An organization of representatives from throughout the City who meet monthly to creatively solve neighborhood problems. Recent issues addressed by the internal group have included binge drinking and quality of life issues in the Old Main Street neighborhood.

-126- Participation in a number of committees charged with making recommendations for various issues facing neighborhoods such as the Downtown Master Plan Committee, Bee Brach Citizens Advisory Committee and the Problem Properties Task Force;

Planning and Organizing Activities Participated in the Downtown Master Plan Committee. During FY 2004 the Downtown Master Plan was completed and approved by the City Council.

Participate in ongoing review with the Community Development Advisory Commission on implementation of the consolidated plan to achieve the goals and objectives. Participate in identifying needs and formulating strategies to address those needs for the new Five Year Consolidated Plan.

Continue to participate on the Mississippi Valley Promise Steering Committee.

Assisted in the organization of the Crime Free Multi-Housing Landlord Training, which was presented again in April 2004 to 27 Dubuque property owners and managers.

Led the City of Dubuque's educational/outreach effort to inform Dubuque's low and moderate citizens about the benefits of the federal Earned Income Tax Credit Program. Outreach included distribution of flyers to over 20,000 city utility customers as well as providing information to parents of students in targeted locations, neighborhood associations, employers, and area social service agencies.

Provides direct assistance to neighborhood associations and neighborhood non-profit organizations in planning and organizing neighborhood events and programs such as the North End's Methamphetamine Crime Awareness Program, Neighborhood Resource Fair, Annual Downtown Neighborhood Clean-Up, the Summer Youth Enrichment Program, Reading Enhancement Program at the Boys and Girls Club, Avon Park Beautification, and the Historic Bluffs Neighborhood Association Loras Boulevard Historic Light Project.

Participated in the Arts Task Force. Task Force provided policy and funding recommendations to the City Council in August 2004.

Grants Administered and promoted Neighborhood Grant Program encompassing 23 separate grants to neighborhood associations and non-profit groups operating in the city's low and moderate income neighborhoods. Funded projects included activities to support at-risk youth and families, educational enrichment programs, neighborhood newsletters, and neighborhood beautification projects and fairs.

During FY 2004, the Historic Bluffs Neighborhood Association was successful in securing funding to complete Phase I of the Loras Boulevard Historic Lighting Project. This project was completed in the fall of 2004.

Assisted various non-profit organizations with the preparation of grants for programs for youth activities and neighborhood improvement projects. Also provided technical assistance to neighborhood organizations and other neighborhood based non-profit organizations on grant preparation for outside grants and other city grant programs such as the Historic District Public Improvements Program.

-127- Partnerships Involvement with school/city/neighborhood/service provider partnership efforts to promote community education. Neighborhood Specialist was a participant in the Downtown Neighborhood Resource Center planning Committee. The new neighborhood resource center will be built in partnership with the Dubuque Community School District's new downtown elementary school.

The Neighborhood Development Specialist serves as a member of numerous boards and community task forces:

Mississippi Valley Promise Steering Committee Project Concern Board of Directors Community Y Board of Directors YWCA Board of Directors Dubuque Community Advisory Panel Member Arts and Cultural Affairs Task Force City of Dubuque Internal Working Group. Friends of the Community Dubuque Community School District Career Technical Advisory Council Non-School Hours Committee-Dubuque Substance Abuse Coalition Earned Income Tax Credit Educational Task Force Community Action Academy Planning Committee Continuum of Care Advisory Board Loras College Community Task Force on Healthy Choice regarding Alcohol Subcommittee of Human Rights Commission-Welcoming Newcomers

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

1. Implementation of near term objectives of Downtown Master Plan assigned to the Neighborhood Development Specialist.

2. Facilitate the development of two additional neighborhood associations in the City of Dubuque.

3. Facilitate the organization of a "Federation of Neighborhood Councils" as a forum to further strengthen neighborhood associations and to provide a platform for addressing common concerns among neighborhood associations and training opportunities for Neighborhood leaders.

4. Continued participation with other city staff in planning efforts for implementation of stormwater management improvements, particularly with regard to soliciting neighborhood input and minimizing negative neighborhood impacts of Bee Branch Drainage Basin Plan Improvements.

5. Continued participation on Steering Committee of Mississippi Valley Promise with intent of establishing Dubuque as a Community of Promise.

6. Provide technical and organizing assistance to revitalize the Five PointslWashington Neighborhood Association as an important "first step" to plan and implement the Washington Neighborhood Revitalization.

-128- DEPARTMENT/DIVISION: City Manager's Office Arts and Cultural Affairs RESPONSIBILITY: Jerelyn O'Connor

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS

In August 2002 the City Council identified Arts Policy and Funding as a priority during the annual goal setting. The directive was to establish a task force to evaluate Arts and Cultural activity in the community and develop a policy to promote and encourage Arts and Culture in the community. In March 2003 an Arts and Culture task force was established and consisted of city staff and representatives from the Dubuque Museum of Art, Dubuque County Historical Society, DUbuque Symphony Orchestra, Dubuque Area Convention and Visitors Bureau, Grand Opera House, Dubuque Main Street, and the Dubuque Cultural Alliance. The task force gathered information on arts and cultural activities in the City and discussed ways in which the City Council can support and encourage continuation of these activities.

The task force developed an inventory of current art and cultural organizations in the community, the number of patrons served, staffing levels, budget and outreach efforts. Beginning in FY 04, the task force began discussion on how to allocate the $35,000 of arts and cultural funding in the FY '05 budget. The task force also discussed the recommendations from the recently adopted Downtown Master Plan to form a Cultural Commission and the State of Iowa Initiative to create Cultural Entertainment Districts. In August 2004, the Task Force submitted four recommendations to the City Council:

Recommendation 1 Establishment of an Arts and Cultural Affairs Commission The City Council accepted this recommendation. This has generated significant interest in the community - 26 persons applied for positions on the Commission. The new Commissioners will be appointed in December 2004.

Recommendation 2 Submit an application to the State of Iowa to become Cultural and Entertainment District. The City Council approved this application and the Dubuque Downtown Cultural Corridor was designated as one the state's initial cultural districts in November, 2004.

Recommendation 3 Establishment of an Arts and Culture Grant Program for Special Projects. The City Council approved this program. During FY 05, $35,000 has been budgeted for this program. $5,000 was set­ aside for the promotion of Winterfest, which was the result of a number of arts and cultural organizations partnering to promote a series of arts and cultural events held the first weekend of December, 2004. It is expected that the new Arts and Cultural Affairs Advisory Commission will review applications and make recommendations for grant awards in February 2005.

-129- Recommendation 4 Provide $250,000 in funding to establish annual Arts and Cultural Operating Grant Program. The City Council identified finalization of Arts Policy and Funding as a top priority during the August 2004 Goal Setting. The City Council will act on this recommendation as part of deliberations on the FY 2006 operating budget.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

1. Utilizing the Cultural Arts Goals of the Comprehensive Plan, facilitate goal setting process with the newly created Arts and Cultural Affairs Advisory Commission to establish priorities.

2. Establish process for ranking and review of Arts Grant applications and criteria for reviewing effectiveness of grant program.

3. In cooperation with Dubuque Main Street, Ltd. and the State of Iowa, develop methods to promote the Dubuque Downtown Cultural Corridor and to measure progress made to increase the economic impact of culture, cultural workers, and related economic growth in the District.

4. Investigate and make recommendations to the City Council on training and educational opportunities for staff and newly appointed Commission.

5. To research funding opportunities to sustain existing arts and cultural offerings in the community and to develop and expand the arts and culture environment.

-130- DEPARTMENT/DIVISION: Leisure Services/ Five Flags Center RESPONSIBILlTY:Gil D. Spence, Leisure Services Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

The barometer of fhe new fiscal year opened with a high pressure front to promote the facility, recruit new facility users, and man the helm for the incoming tidal wave of events.

The first event wave was strong beginning with a sold-out Willie Nelson Concert. This popular event presented its fair share of rough waters, especially with the technological failure of Ticketmaster on opening day of ticket sales. Approximately 800 people were lined up to purchase tickets when the system failed due to a thunderstorm in Chicago. Five Flags administrative staff weathered the storm selling tickets one-frustrated-customer-at-a-time over a single phone line.

Operations staff worked diligently throughout the week of the Willie Nelson concert, sweating through repairs of the aged Five Flags HVAC system. Five of the nine arena HVAC units were not working properly. All units were repaired in time for the concert, keeping 3,600 people cool.

Waves of ticketed events kept the box office in fluid motion this year. Ten different events were on sale simultaneously on the Ticketmaster system in September, keeping the ticket sellers juggling a variety of event codes and seating charts, selling tickets to Sesame Street Live, USA Ballet, Canadian Brass, Quad City Mallards vs. Rockford Ice Hogs, Diamond Rio, Nashville Mandolin Ensemble, Lorie Line and her Pop Chamber Orchestra, and the Harlem Globetrotters. In addition to computerized ticket sales, DSO Holiday Pops and Fly-By-Night tickets were sold from the racks, for a total of 18 ticketed-events simultaneously on sale in the Five Flags Box Office.

Ticket sales soared into October with the last-minute booking of the REO Speedwagon concert. This show, in addition to the Carden International Circus, and four performances of The Nutcracker, brought a second flood of events, for a grand total of 25 ticketed-events on sale, making October of FY 04 the all-time ticketed event record at Five Flags.

In November, Five Flags held its final Craft Show. All flat floor events at Five Flags floatE;ld to their new location at the Grand River Center. Five Flags staff worked in conjunction with the Grand River Center to assure smooth sailing for the re-Iocation of the flat floor shows.

Five Flags staff decorated for the holidays for the first time in the history of the center. Staff concentrated on making Five Flags look festive on a shoe-string budget, spray-painting second­ hand figure skates silver, and hanging them from the promenade lights. Good PR with arena users was the result, as many compliments were received regarding the decorations.

The month of December brought droves of people to Five Flags for the traditional holiday events. The "Tickets Make Great Gifts" campaign was in full swing, keeping the Ticket Office

-131- staff at a fast paced ticket-selling clip. The Dubuque Symphony Orchestra presented three full­ house Holiday Pops Concerts at Five Flags Theater, immediately followed by two full weekends of The Nutcracker presented by the Dubuque City Youth Ballet.

D':lring all of the holiday performances in the Theater, the Arena was filled with fans cheering on a winning Thunderbirds Hockey team. In addition to ice events, the world-renowned Canadian Brass performed their Christmas concert in the Arena, and the Harlem Globetrotters made a Dubuque appearance on December 30, proving the Tri-states loves the Globetrotters. Five Flags held honors as the first sell-out for this national tour.

The event waves continued through the winter, with the comedian Carrot Top performing on a nd snowy February 2 . Carrot Top won the hearts of the Five Flags audience with pyrotechnics and five over-sized trunks of props.

The Thunderbirds celebrated a successful third season with a new coach and a new flock of hockey players. The Thunderbirds were crowned "League Champions," becoming the first-ever out-of-state team to win the Minnesota Junior Hockey League. The MJHL League Champion trophy is proudly displayed in the Five Flags trophy case. The Thunderbirds made Dubuque proud by also winning the MJHL Playoffs. This title qualified them to compete in the national junior hockey league championship in Syracuse, NY.

The flood gates opened on Five Flags Arena from March 3-6, when over 8,000 people poured through the doors for the NCAA Division III National Wrestling Championship over the course of 4 days. This was the first NCAA event ever in Dubuque.

Hempstead's High School's Performance of "Grease," deluged 4,133 people on Five Flags Theater, selling $35,789.00 in tickets for seven performances. This high-energy performance was a big splash for Five Flags Theater!

Educational waters were chartered throughout the months of April and May at Five Flags. The Dubuque Community School's All School Chorale, the DSO Arts Trek, Wahlert High School's musical performance of Chicago. NISOM also presented "Opera You'll Love, REALLY" in the Theater, and NICC hosted the USA Skills Competition in the Theater and Arena.

Thousands of graduates flowed to Five Flags, for the graduation ceremonies of Hempstead and Senior High Schools, Loras College and NICC. In total, over 12,000 people came to Five Flags for rehearsals, baccalaureates and graduation ceremonies in the month of May. A last-minute booking of Sevendust, Cold and Atomship in concert was squeezed in between graduation rehearsals and ceremonies. The concert tested the skills of Five Flags security, and poured a nice revenue stream for concessions. The Five Flags stage crew worked all day, and all night, to complete the concert and turn the arena around in time for High School Graduation Practice the next morning.

Throughout the waves of continual events, Five Flags staff also served on committee to study the pros and cons of private management. With three firms vying to sail the Five Flags ship, final negotiations presented SMG with the private management contract.

The fiscal year came to a close with impressive revenues at Five Flags. Final budget numbers showed an increase in revenue of $106,592 over the prior fiscal year, for an increase in self supporting of six percent, or 50.09% self-supporting (44.10% in FY'03). These will be hard

-132- numbers to beat in the Five Flags transition year of FY'05. We celebrate the FY'04 success and continue to sail through the next fiscal year, while managing the transition to SMG.

FUTURE YEAR INITIATIVES FOR 2005 AND 2006:

• Transition to Private Management • Five Flags Arena Promenade, Ticket Office and Concession Renovation • Work with the Information Services Department to develop a stand alone Five Flags web site. • Continue the transition of some events to the Grand River Center and refer new contacts to the Center for scheduling their events. • Complete the second program/service review of the Five Flags operation to look for operation efficiencies and cost reduction measures. • Continue the more aggressive approach to co-promoting and self-promoting events in the Center as a means to reduce property tax support and provide a greater variety of events for the citizens of the area. • Implement the capital improvement budget to better serve users and make the building environment more attractive. • Develop a plan to better communicate building usage to the City Manager and City Council.

-133- DEPARTMENT/DIVISION: Economic Development RESPONSIBILITY: William Baum Economic Development Director

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Historic Preservation Activity Staff reviews federally funded projects in accordance with the Federal Government Section 106 requirements, including the entire housing rehabilitation project for the Housing and Community Development Department. Staff continues to work with the State Historic Preservation Office (SHPO) on a new Programmatic Agreement that allows internal approval of regulated projects.

Economic Development Activity The Downtown Rehabilitation Loan Program provided a $300,000 loan to Heartland Financial, USA for the rehabilitation of the former Walsh Store and has committed resources to John Gronen's Upper Main Development ($300,000 for 6 buildings in the 1000 Block of Main Street) and Lower Main Development, LLC ($300,000 for the former Weber Paper Company building). Fully funding these projects will take until 2007-2008 because of the nature of the revolving loan fund.

An $800,000 forgivable loan ($650,000 from CDBG) was provided to The Alexander Company for the Phase 1 restoration of the former Dubuque Star Brewery that included interior gutting and sandblasting, exterior tuckpointing and brick repair and environmental remediation.

A $62,000 UDAG loanwas provided to Medline as local match for an Iowa Values Fund award and $20,000 was awarded to Dubuque Nursery and Landscaping.

CEBA and Iowa Values Fund awards were provided to Vessel Systems ($125,000 for 25 new jobs), Shepherd, Inc. ($100,000 for 43 relocated jobs), McKesson ($298,000 for 74 new jobs) and Medline ($179,000 for 41 new jobs).

Completed land sales with the following: Vessel Systems for 5 acres and The Adams Company for 10 acres at Dubuque Industrial Center West. Extended the Bergfeld farm lease for three additional years. Extended lease with Rustic Hills Carriage for another year. Entered into a one-year lease with The Alexander Company for the Dubuque Star Brewery building.

Continued to support Port of Dubuque redevelopment projects by finalizing the relocation of Dubuque Hardwoods owner and tenants, Mississippi Valley Truck Center/Miller Logging and The Adams Company. Demolition and grading/seeding of properties north of 5th Street completed.

Completed Development Agreements with Lower Main Development, LLC, The Adams Company, and Vessel Systems. Continued negotiations on Development Agreement and 50­ year lease agreement with The Alexander Company for redevelopment of the former Dubuque Star Brewery property. '

-134- Completed TIF Economic Development Grants to the following companies: Vessel Systems ($140,000), Lower Main Development, LLC ($150,000) and The Adams Company ($500,000).

Continued to spend $357,660 EDI Grant for property acquisition and cleanup in the Port of Dubuque which was used to demolish structures on the former Dubuque Hardwoods, Miller Trucking, Klauer property and Peavey Grain pads and to prepare the property for redevelopment. Funds were also spent on environmental remediation at the Brewery.

Received $200,000 EPA Brownfields Cleanup grant to remediate a petroleum plume at the former Molo Oil Company site in the Port of Dubuque. An additional $142,000 in state Brownfield cleanup funds were received from IDEO to assist the effort.

Enterprise Zone contract was completed for Gronen Adaptive Reuse LLLP for the Upper Main Development 30-unit upper-story housing project.

A RISE application was submitted for Hwy 32 (SW Arterial).

The Greater Downtown Urban Renewal District merged the existing Downtown and Ice Harbor districts into one comprehensive redevelopment area for purposes of planning and TIF financing.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Continue implementation of the revitalization plan for the Old Main area in collaboration with property owners and Dubuque Main Street, Ltd, including recommendations of new Downtown Master Plan.

Continue focus on appropriate financial incentives to support overall economic development strategy, working with IDEO and local and regional partners.

Continue Port of Dubuque redevelopment efforts, including Star Brewery project, The Adams Company relocation, Durrant office building project, and marketing of the remaining property for commercial, housing and/or recreational opportunities. Amendment and consolidation of Downtown and Ice Harbor Urban Renewal Districts as tool for redevelopment will be considered.

Prepare for demolition of The Adams Company buildings after their relocation and preparation of property for redevelopment.

Continue planning and design work for the expansion of the Dubuque Industrial Center West easterly to include the formerBergfeld property, connection of Chavenelle Road and possible construction of rail spur to serve development sites.

An improvement package has been requested in the FY 2006 budget that provides for a partnership with Dubuque Initiatives and others for collecting and providing information about the community to local and national retailers that focuses on downtown and riverfront development. This would include providing this information to local realtors, entrepreneurs and developers as they pursue retail opportunities.

-135- Washington D.C. Initiatives: Continue ongoing effort to become more aggressive in the pursuit of federal resources.

Brownfields Initiative: Manage the EPA $200,000 Brownfields Assessment Demonstration Pilot program which is providing Phase 1 and 2 Environmental Assessments and remediation plans for City-owned property in the Port of Dubuque. Manage the $200,000 EPA Brownfield petroleum cleanup grant that will assist the remediation of the South Plume area (former Molo Oil site) and apply for additional State Brownfield funds for that project.

-136- DEPARTMENT/DIVISION: Emergency Communications RESPONSIBILITY: Sandi Hutchcroft Emergency Communications Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

911 Center Remodeling Remodeling began in the spring of '04 with the relocation of the mangers office across the hall from the dispatch center. This allowed for the removal of the large diagonal wall that separated the operations center from the manager's office. The cement wall was removed in the early morning hours so as not to disturbed the normal 911 center operation. The Center received a new coat of paint, new carpeting, and corner extensions placed within the existing work stations to allow for more room between each of the sitting areas.

New Equipment . Each work station had new computers installed with flat screens. At the first and fourth position work stations the consoles are on risers so that a dispatcher may stand or sit as they are dispatching during their 10 hour shift. A large island was removed and a circular lazy susan type table was installed to place the state printer on. The table was designed to provide storage as well as an easy access to all of the resource books/manuals that a dispatcher might need.

911 Tapes for Court Purposes In FY/04 911 dispatchers answered 659 calls for services that involved a domestic nature code. Of those calls for service, 228 went on to court proceedings of some sort. Copies of the original 911 calls are made and sent over to the County Attorney's office to provide foundation for the case. Tapes are also requested for the processing of operating while intox, burglaries, and variety of other categories.

Defense lawyers as well as the public submit a request for 911 tapes to enhance or resolve cases before they go into court. A minimum service fee of $20.00 has been initiated to cover the cost of this service.

Accreditation This spring an assessment team from the "Commission on Accreditation for Law Enforcement Agencies" conducted their 3rd review on the policies and procedures of the Dubuque Police Department. As part of that assessment the Communication Center is evaluated on the delivery of service for the agency under the section titled "Communications." The Communications Center staff were interviewed and observed in their daily activities. The Commission found that the standards set forth for evaluation were adhered to in the operation of the 911 Center.

Grant Money The Center submitted two proposals to be approved through the Department of Justice Equipment Grant Program. Both proposals have been approved. Equipment requests consisted of a large monitor screen to replace an existing smaller one; and additional money to

-137- be added to the current CIP of 26,000 to purchase a new burglar and fire alarm monitoring system. Bids on the RFP that were sent out by the City of Dubuque were $15,000 over budget.

Training Highlights Training for the personnel in the Center totaled 216 hours in FY/04. One dispatcher attended mandatory "Basic Telecommunicator Training" and IOWAINCIC certification.

Last fall, 13 dispatchers attended a course title "Responding to TID Calls". The program provided the dispatcher with scenarios for handling and processing a 911 call from a person who is hearing impaired. In addition the dispatchers were briefed on correct procedures to use when an "Amber Alert" is issued by an agency.

The department also recertified in CPR and AED training.

911 Center Involvements

Criminal Justice Information Group This group was formed to provide communication between law enforcement, county attorney's office, judges, clerks, probation department, and victim advocates. The 911 Center is active in this group because of the responsibility they have for entering warrants, domestic abuse orders, and the sexual offender file.

Northeast Iowa Supervisors Group Participating agencies in this group are Clinton, Jackson, Jones Bettendorf, Scott, Cedar and Dubuque. Supervisors from Northeast Iowa meet quarterly to go over issues that are relevant to the operation of 911 Centers. We have pooled our training requirements and are taking turns hosting sessions for the dispatchers from the respective agencies. Regional training allows for better participation because of scheduling issues. Dispatchers are not required to travel back and forth from Des Moines to receive the mandatory training. Dubuque hosted the first one session last October. Over 30 area dispatchers attend the two sessions.

Homeland Security Advisory Counsel Center Manager Hutchcroft serves on the State Advisory Board. The Board meets throughout the year with Iowa Homeland Security Director Ellen Gordon on issues of Public Safety and awareness.

Iowa 911 Council The Iowa 911 Council meets monthly to coordinate the development of 911 systems across the State and to prepare for the impact that the wireless industry will have on the operation of 911 Centers. This year the Council and State Department of Emergency Management are working together to bring Chapter 34A (bills deals with 911 services throughout the State) in step with the present 911 environment. The bill also provides for a future path plan for 911 in Iowa.

Communication Liaison Group This group has evolved out of the Police Connect Group. The group consists of Public Safety entities that use the services of the Dubuque 911 Center. The group meets quarterly to review policies and proceduresfrom all the departments, so that a better understanding of the different public safety roles can be appreciated. We also present any inquiries that the representatives have regarding how a call or procedure was recently handled.

-138- FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Replacement of Burglar/Fire Alarm Board The alarm board monitors all burglar and fire alarms that terminate in the Communication Center. This equipment needs to be updated to a digital receiving board.

Computer Interfaces An interface with our CAD software and GIS provides the dispatcher with a geographical location on any call received in the Communication Center. This improvement will provide for a faster and more exact location to be given to the responding agencies. GIS is a necessary tool when receiving a 911 wireless call. XY coordinates are transmitted to the 911 Center and then plotted onto a map for the dispatcher to utilize for the location of the caller.

Other interfaces yet to be completed with the Emergi-Tech project are Fire, TRACS, and Printrac.

Phase 2 Wireless Phase 2 of the wireless plan will be completed in FY/05. Testing by several of the local wireless vendors has already been completed in Dubuque County. Phase 2 transmits area location to the dispatcher for processing of the 911 wireless calls.

-139- DEPARTMENT/DIVISION: Emergency Management RESPONSIBILITY: Thomas I. Berger, Director

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

The Emergency Management Agency maintained a working relationship with the City of Dubuque and Dubuque County Public Safety Agencies, City of Dubuque and the County of Dubuque, as well as the State Homeland Security and Emergency Management and the Federal Emergency Management Agency. In addition to the main governmental agencies, we maintain relations with and work closely with volunteer and civic organizations; schools and universities; private companies and industry; and the citizens of Dubuque and Dubuque County. The following items describe the accomplishments of the Emergency Management Agency:

• The Dubuque County Multi Hazard Plan was reviewed and resubmitted to the IHLSEM meeting the new requirement of Chapter 29C of the Iowa Code. This is Part A of the Comprehensive Emergency Management Plan and is our Emergency Operations Plan. The plan was submitted to the State Homeland Security and Emergency Management Division (HSLEM) and is currently compliant. • Completed the paperwork and reporting requirements to make the City of Dubuque eligible for a $130,024.00 grant through the Critical Infrastructure Protection Allocation through the State Homeland Security Grant Program. This grant is in the process of purchasing security equipment for the fire stations, law enforcement center, city hall annex and the water department • The Hazard Mitigation Plan was also reviewed and submitted to the Homeland Security and Emergency Management Division. It is part B of our plan and is compliant with State regulations. This was revised due to the presidential disaster declaration that enables Dubuque County jurisdictions to be eligible for disaster funding due to the floods in May 2004. • Revised the DUbuque County Recovery Plan. This constitutes part c of our plan and we are compliant. This was revised due to the presidential disaster declaration that enables Dubuque County jurisdictions to be eligible for disaster funding due to the floods in May 2004. • Completed the paperwork and reporting requirements to receive over $373,730 in funding through the Office of Domestic Preparedness State Homeland Security Grant Program. This benefits all areas of response in the City of Dubuque and Dubuque County. • Updated and reviewed the Strategic Plan for the Dubuque County Emergency Management Commission. • Completed all paperwork that allows the City of Dubuque, Dubuque County and all small cities to be eligible for the state share of disaster funding if a disaster is declared in our area. • Opened the Emergency Operations Center eighteen times for storms and severe weather for key EOC personnel. This included warnings of storms that went through DUbuque County. Full activation of the EOC occurred 5 times during this fiscal year, mainly for flooding events.

-140- • Opened the EOC for President Bush's visit to Dubuque in May, 2004. • Received and administered the Emergency Medical Services Training Grant for the DUbuque County EMS Association. I also served as Secretary of the association. Our grant was increased to $10,000 which is the maximum amount awarded by state rules as well as an additional allocation of $10,101 from the CDC/HRSA allocation to maintain a better level of response for EMS agencies to man made disasters and events. • Participated and attended many of the training and seminars offered by the State of Iowa Emergency Management Division. •I completed all of the requirements to attain the Certified Emergency Manager (CEM) certification through the Iowa Emergency Management Association. • Filed and administered a Hazardous Materials Training Grant with help from the Local Emergency Planning Committee. • Continued to work with the volunteer organization called the Dubuque County Support . Services. The organization promotes emergency management activity and responds to emergencies to assist the pUblic safety agencies within Dubuque County. These are the volunteers that staff the Emergency Operations Center for disasters and special events. • Conducted a full-scale mass casualty incident with over 250 participants and 16 agencies at the Dubuque Regional Airport. Over fifty patients were transported to local trauma centers with simulated injuries from an airplane hijacking. • Conducted two spotter training classes through the National Weather Service to enhance our local spotter's and the public response and accuracy in identifying threatening weather conditions. • Completed the 2002 DOJ Terrorism Grant paperwork and placed in service the interoperability system to be used for multi-jurisdictional responses in the Dubuque area. • Assisted the Dubuque County Fire Fighters Association with activities related to fire safety and public education to include the fire safety house, training trailer, training facility task force. • Updated the special needs registration program. • Completed the ODP FY2004 State Homeland Security Assessment as a requirement to receive future grants. • Completed and submitted all paperwork to qualify Dubuque County and the emergency response disciplines for the Homeland Security Grants Program. The 2004 grant allocation of $347,788 will be used for training equipment for the Dubuque County Fire Fighters Association Regional Emergency Responder Training Facility. • Completed paperwork that brought over 1200 NOAA weather radios to be distributed to local communities and individuals free of charge.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

• Continue to organize, lead and support the volunteer agency of the Dubuque County Support Services. Develop the Support Services group into a viable and well-respected organization that promotes a positive image in the community by promoting Emergency Management activities. • Continue to maintain a database to identify citizens with special needs for notification and evacuation during a man made or natural disaster. • Maintain local Hazard Mitigation Plans and assist ECIA in updating plans to ensure they are compliant with the regulations of the Federal Pre-disaster Mitigation Act of 2000. • Continue to • Attend all classes and seminars that are provided to continue certification at the State and Federal level.

-141- • Assist in maintaining the Outdoor Warning System for the City of Dubuque and also assist other communities in developing and/or maintaining their siren systems. Continue to expand upon the warning capabilities and discover and mitigate shortfalls in the county system. • Respond to all disaster occurrences and through training, education and preparedness mitigate the disaster. Approach all disasters and incidents with multi-agency cooperation and teamwork. • Maintain all disaster plans, severe weather plans, and County Mutual Aid agreements and provide training to the agencies involved so we can better respond as a team to the needs of the population during a disaster or other emergency. • Conduct two tabletop, two functional and one full-scale disaster drills integrating the components of the Multi-Hazard Plan and Emergency Management functions as well as the terrorism plan that maintains Dubuque County's eligibility for Homeland Security Funding. • Convene the Multi-Hazard Plan Committee to do a complete revision of the document to meet State and Federal requirements. Distribute the plan to those involved and provide training to outside agencies that are required to use the plan. • Continue to update and maintain the Terrorism Plan and make additions as more information is available. • Educate the public on the importance of having a weather radio at their work place and home to warn them of approaching severe weather. Conduct speaking engagements with the Nursing Homes, hospitals, child care centers, civic organizations, service clubs and schools to promote the installation of the NOAA weather radios. • Continue to encourage all businesses and organizations to install NOAA weather radios to be alerted of watches and/or warnings. Maintain call lists as a contingency plan to the fire department making phone calls. • Complete the proper paperwork to ensure the delivery of the equipment funded through SHSGP I& II of the Office of Domestic Preparedness Homeland Security Grant Program. • Continue to complete the proper paperwork to be eligible for federal funding for the Emergency Management Planning Grant, which is the funding from the federal government to supplement the EMS Commission budget. • Complete a Critical Asset Protection Plan as a new requirement of the federal government • Update the Strategic Plan for the Emergency Management Commission. This is also a requirement of the federal government. • Complete paperwork and meet the requirements of the additional funding that will be given to the commission to provide planning at the local level. The commission serves as the administering agency of all grants received through the Iowa Homeland Security and Emergency Management Division • Continue to pursue additional funding and grant opportunities to enhance the emergency response in Dubuque and Dubuque County.

-142- DEPARTMENTIDIVISION: Public Works/Engineering RESPONSIBILITY: Gus Psihoyos, Acting Public Works Director

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISMENTS': (Calendar Year 2003)

The Engineering Division's Fiscal Year 2004 Capital Improvement BUdget for street, sanitary sewer, storm sewer, and other improvements is $20,341,123. Reconstruction and maintenance of the City street system continues to be top priority of the Division, with $14,516,240 budgeted for street improvements alone. Informational meetings were held between City staff and impacted property owners for the University Avenue, Wartburg and Chestnut Street reconstruction projects.

Major construction projects in Fiscal Year 2004 (Calendar Year 2003) currently being designed or currently under construction include:

Street 1. We;trtburg Place Reconstruction, from Fremont Avenue to End 2. West End - Harbor RoadlWall Extension 3. Locust Street Connector 4. Bell Street, from 5th to northerly End 5. Fremont, from Dodge Street to Simpson Street 6. Chestnut, from Highland to Cox 7. Garfield, from Marshall to EI m 8. Windsor Avenue, from Burden to Stoneridge 9. 8th Street, from Locust to Airhill 10. Iowa Street, from 14th to 1th Street 11. Stoneridge, from Windsor to end 12. University Avenue from Delhi to Spruce 13. SW Arterial

SanitarY Sewer 1. Soccer Complex 2. High Bluff 3. Napier to Kaufmann 4. 3rd Street Ramp 5. Highway 20 Annexation 6. Manhole Replacement

Storm Sewer 1. Carter Road Detention Basin 2. W. 32nd Street Detention Basin - Property Acquisitions 3. Bee Branch Creek Alignment Study 4. NPDES Compliance Program 5. Stormwater Utility - Implementation 6. Hawthorne & Kerper Storm Sewer Improvements 7. W. 32nd Street Storm Sewer 8. Custer/Allison-Henderson Drainage Improvements

-143- 9. Middle Road Culvert 10. Alley - Sunnycrest to Roosevelt Storm Sewer

Miscellaneous 1. Guardrail Replacement 2. Traffic Signal Coordination 3. Traffic Signalization Efficiency Program 4. Railroad Track Rehabilitation 5.. Harbor Area Maintenance 6. Mississippi Riverwalk 7. Ice Harbor/Port of Dubuque Utility Relocation - Phase IV 8. Port of Dubuque Tourism Signage 9. Port of DUbuque Education & Conference Center/Greenway 10. Port of Dubuque Visitor Amenities 11. Port of Dubuque Parking Lots

The City has made a continuing effort to extend the Heritage Trail system from the northerly City limits (32nd Street) to the Mines of Spain. The areas included in this system are: Jaycee Trail from Volunteer Drive to 16th Street; Heritage Trail extension (16th to Sycamore); and Powerline Trail from North Grandview to Mines of Spain.

The Port of Dubuque Mississippi Riverwalk Project has been substantially completed and the ribbon-cutting was held on June 12, 2003. The Riverwalk project involved the construction of the riverfront promenade and amenities along the Mississippi River and Ice Harbor from the existing River's Edge Plaza, north to the Alliant Energy (Star Brewery) Amphitheater and from the Welcome Center-Port Side Building, west to Ice Harpor Park and the National Mississippi River Museum and Aquarium site. Riverwalk amenities included the construction of a 15-foot wide decorative concrete walkway, constructing the River's Edge Plaza Pavilion, Riverwalk shade structures, ornamental lighting, decorative benches, litter receptacles, bicycle loops, drinking fountains and colorful landscaping.

The Port of Dubuque Ice Harbor West Road Project has been substantially completed and involved the construction of sheet pile containment cells and structural concrete cap around the westerly end of the Ice Harbor, which allowed for the construction of a new concrete roadway, 24 feet in width, which connects both the north and south port peninsulas. As part of the project, a decorative barrier railing was installed adjacent to the sidewalk on top of the sheet pile wall at the edge of the Ice Harbor, which will compliment the decorative railing installed on the Riverwalk and will also function as a vehicular protective guardrail. On the railroad side of the roadway, a safety railing was installed which will match the decorative railing installed on the Riverwalk and is intended to prevent pedestrians from gaining access to the rail lines. Due to cold weather conditions, the remaining decorative concrete sidewalk, amenities and landscaping be completed in the spring of 2004.

The Engineering Division completed two (2) major bridge reconstruction projects. The Manson Road Bridge was completed and serves as the only access into the Manson Road area. The Fengler Street Bridge was completed and provides an essential link to the Kerper Peninsula for both emergency response and public usage.

In the last year we have assisted four properties in connection to City sewer and worked with several others in the connection of their properties to City sewer through our various assistance programs. We are currently working on Phase I of the US 20 sanitary sewer extension to

-144- service seventeen properties west of the NW Arterial. Phase II and Phase III involve properties along Old Highway Road.

The purpose of the City's Inflow and Infiltration (I & I) is to decrease the extraneous stormwater inflow and groundwater infiltration into the Catfish Creek and downtown sanitary collector systems. This program will reduce the potential for sewer backups and line surcharging, reduce pumping costs, and assist in meeting effluent standards at the Water Pollution Control Plant.

The City's Inflow and Infiltration (1&1) Program has continued during 2003. The inspections are conducted to locate improper connections to the sanitary collector systems and identify potential inflow sources such as sump pumps, roof drains, and yard drains. In 2003, 1600 inspections are anticipated and have completed over 90%. Of the identified illegal connections, 75% of the property owners have corrected the illegal hookups.

Drainage Basin Master Plan Several homeowners witnessed the benefits of the Drainage Basin Master Plan in June of 2002. In the past, a rainstorm of that magnitude would have produced stormwater in excess of what the creek that runs from the NW Arterial to Rosemont is able to convey. The excess stormwater would back-up, pond deeper and deeper, to a point where it would enter into basements, eventually, overtopping Rosemont, making it impossible to drive safely. With the NW Arterial Detention basin completely functional, stormwater did not flow over Rosemont and the homes historically at risk did not experience property damage. Implementing the remaining improvements outlined in the Drainage Basin Master Plan remains a top priority in Fiscal Year 2005.

Stormwater Utility Implementation With the help of CDM, an engineering consulting firm, and a citizen advisory committee, City staff continues to implement the stormwater utility.

Much like the sanitary sewer utility, the stormwater utility includes a monthly fee based on each properties contribution to the stormwater that the City must manage. Because more rainwater flows from a paved parking lot than a mostly grassed lawn, the owner of the parking lot pays a higher fee.

Financing the cost of the $38,694,949 Drainage Basin Master Plan will take a combination of revenues from the Dubuque Racing Association and an increase in the monthly Stormwater Fee. The impact on the Stormwater Fee is further complicated by the fact that the DUbuque Racing Association did not receive a back tax payment from the State of Iowa when their lawsuit was settled. The DRA funds and the Stormwater Fee revenues would be used to retire general obligation debt, a variance from previous funding plans. Debt is being used so this project can be completed in a reasonable time-frame, while the costs are spread over a long period of time. The City will also continue to pursue federal grants.

The recommended Stormwater Fee to implement the program to protect over 1,150 Dubuque properties from stormwater flooding is to leave the current $1.29 per month fee in place until the end of this fiscal year. At the beginning of Fiscal Year 2006, July 1, 2005, the monthly fee would rise to $1.79. This increase to $1.79 has been mentioned in the past as the impact of not receiving a back tax payment from the State of Iowa when the DRA lawsuit against the State was settled. At the beginning of Fiscal Year 2007, July 1, 2006, the monthly fee would rise to $2.00. The fee would then rise 25¢ a year until Fiscal Year 2013, when it would reach $3.50 a month, and continue at that rate until Fiscal Year 2032. These funding projections assume that approximately $35 million of DRA revenues will be dedicated to implementation of the plan.

-145- The County of Dubuque has received and shared its GIS system with the City. Some of the shared data includes aerial photography, parcels, lots, address and street designations. The City spent the summer updating all City street and subdivision information; efforts are underway to include storm sewer, sanitary sewer, stormwater detention, and to incorporate the pavement management system. The updated information was submitted to Iowa One Call in an effort to reduce the number of local and county calls. The City has budgeted a reflight for the west end in 2005.

Stormwater Management Ordinance Development Engineering is currently drafting three ordinances that pertain to stormwater management. The need for a Stormwater Detention Ordinance has evolved due to the multitude of developments that have occurred in the past year and the need to ensure that stormwater controls such as a detention basin are constructed in a timely manner. The need for an Erosion Control Ordinance originated when the City Council established the need for an erosion control policy as a priority. In addition, the Federal National Pollution Discharge Elimination System (NPDES) - Phase II regulations require that the City of Dubuque must have an erosion and sediment control ordinance. The Federal regUlations also require an Illicit Discharge Ordinance to prevent citizens from disposing improper wastes into a storm sewer - an illicit discharge ordinance.

Bee Branch Creek Restoration Alignment Study While the City Council has adopted the Branch Creek Restoration Project from the 16th Street Detention Basin to Garfield, several questions and concerns related to the project from Garfield to 24th and Elm must be addressed. The objective of the Bee Branch Creek Alignment Study is to address those concerns by: a. Establishing the optimum alignment for the proposed open waterway along its approximately 4,500-foot length (from 16th Street detention basin to 24th and Elm Streets) based on existing environmental, utility, social and economic constraints; b. Providing a preliminary design to a level that it establishes: . i. What the waterway will look like at different locations along its entire length; ii. How the waterway will function before, during, and after rainstorms of different magnitudes; and iii. Working with impacted residents in the form of a citizens advisory committee to ensure that the recommended alignment location and waterway design are based on input from the neighborhoods impacted by the proposed open waterway.

. National Pollution Discharge Elimination System (NPDES), Phase II Program Implementation City staff continues to implement the stormwater quality program outlined in the NPDES permit application submitted to the Iowa Department of Natural Resources (IDNR) in March of 2002 despite the fact the IDNR has yet to issue the City a permit.

-146- CURRENT INITIATIVES FOR FISCAL YEAR 2005 (Calendar Year 2004):

The Engineering Division has continued its emphasis on public informational meetings concerning projects that have a significant impact on neighbors. Neighborhood meetings were held on the street construction projects including Chestnut Street,University Avenue and Fremont. Informational meetings were also held for the Sanitary Sewer Extension Projects on Madison Avenue and U.S. 20 West. These meetings have been a valuable source of information, both to the affected property owners and to City staff. These opens lines of communications have served as a problem-avoidance mechanism since all parties are better informed on the project and its impact.

The Carter Road Detention Basin was identified in the Drainage Basin Master Plan (DBMP) produced by HDR Engineering. Intended to alleviate flooding in the Bee Branch watershed, the project was estimated to 'cost $875,000. Although multiple engineering firms advised that the City's aggressive schedule to have a working detention basin by the spring of 2004 was not nd feasible, the detention basin was functional during the May 22 , 2004 rainstorm that resulted in a Presidential disaster declaration. Credit must be given to the City's consultant Veenstra & Kimm who promptly designed the project and obtained the necessary regulatory permits; adjacent property owners who agreed to easements ina timely manner; and the general contractor for the project Tschiggfrie Excavating who worked diligently, striving for the early completion bonus.

An illicit discharge ordinance was drafted and adopted by the City Council to meet one of the requirements of the City's National Pollution Discharge Elimination System (NPDES) Phase II stormwater permit.

Completion of a joint project between the City and the Iowa DOT - US 20 Corridor - Intersection improvements,S lane widening from NWA to Old Highway Road, traffic signal and equipment updates and coordination along the corridor.

The Engineering Division's total Capital Improvement Budget for Fiscal Year 2005 included $18,652,678 for street, sanitary sewer, storm sewer, and other improvements. Reconstruction and maintenance of the City street system continues to be the top priority of the Division, with $12,841,303 budgeted for street improvements alone.

Major street projects included:

1. Chavenelle Extension West of Seippel 2. Chestnut Street Reconstruction 3. University Avenue Reconstruction 4. Fremont Avenue Reconstruction 5. Diagonal Street Resurfacing 6. Broadway Resurfacing 7. Wacker/Center Grove Resurfacing 8. Julien Dubuque Drive Resurfacing 9. SW Arterial 10. Samuel Street 11. Arboretum Drive 12. Asbury Widening 13. Harbor West Road 14. Widen US 20 from Cedar Cross to Old US 20

-147- Major Storm Sewer Projects: 1. W. 32nd Street Detention Basin - property acquisition 2. Port of Dubuque Storm Sewer Extension Phase IV

Major Sanitary Sewer Projects: 1. Madison Street Sanitary Sewer Extension 2. Arboretum Sanitary Sewer Extension 3. Fremont Sanitary Sewer Reconstruction 4. Chestnut Sanitary Sewer Reconstruction 5. University Sanitary Sewer Reconstruction 6. Brick Manhole Replacement Program

Miscellaneous Projects: 1. Lincoln Avenue at grade rail crossing warning flashers 2. Heritage Trail Extension 3. Fiber Optic conduit along NW Arterial 4. Port of Dubuque Parking Lot Reconstruction 5. Fiber Optic Conduit installed under City Streets: a. Fremont Street b. Middle Road from NWA to Middle Road c. University Avenue from Delhi to Spruce d. Hill Street

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006: (CalendarYear 2005)

The Engineering Division's Fiscal Year 2005 Capital Improvement BUdget for street, sanitary sewer, storm sewer, and other improvements is $21,752,572. Reconstruction and maintenance of the City street system continues to be top priority of the Division, with $15,596,410 budgeted for street improvements alone.

Major construction projects in Fiscal Year 2005-2006(Calendar Year 2005) currently being designed or currently under construction include:

Street 12. SW Arterial 13. Rosedale Reconstruction 14. Shot Tower Drive Reconstruction 15. 6th & i h Street Reconstruction 16. Bonson Road Reconstruction 17. Madison Street Resurfacing 18. Hill Street Resurfacing 19. Main Street Resurfacing 20. University Avenue Extension Construction

Sanitary Sewer 1. Eagle Point Drive Extension 2. Rosedale Avenue Reconstruction 3. Nightengale Lane Extension 4. Hawthorne Street Reconstruction 5. Washington Street Reconstruction 6. Rockdale Road Extension

-148- 7. Mullen Road - Asbury to Hillcrest Reconstruction 8. University Avenue Connection Reconstruction ·9. Cox Street Reconstruction 10. Washington - Jackson Alley Reconstruction 11. Loras, Walnut to Prairie Reconstruction 12. Rhomberg - Garfield Reconstruction 13. Annex Study/Implementation Reconstruction 14. Annex Middle Road Extension 15. Highway 20 Annexation Extension . 16. Manhole Replacement

Storm Sewer 1. US 52 Storm Sewer Reconstruction 2. W. 32 nd Street Detention Basin - Property Acquisitions 3. Bee Branch Creek Alignment Study 4. NPDES Compliance Program 5. Custer/Allison Henderson

Miscellaneous 1. Brunskill Road Bridge 2. Louise Lane Bridge 3. Town Clock Lighting 4. Guardrail Replacement 5. Traffic Signal C09rdination 6. Traffic Signalization Efficiency Program 7. Railroad Track Rehabilitation 8. Harbor Area Maintenance 9. Washington Park Sidewalk Replacement 10. Traffic Signal Inner-connect Conduit Repair 11. Traffic Signal Mastarm Retrofit 12. Port of Dubuque Parking Lot Construction and Landscaping 13. New traffic control cabinets installed at 7 intersections 14. Battery backups installed at 10 intersections 15. New Historic Lights installed along Loras Blvd.

Highway 20 Annexation Sanitary Sewer Extension: This project has been split into Three Phases. The First Phase is currently out to bid. The First Phase serves businesses along U.S. 20 from the new Menards to White Front Feed. The Second Phase was designed three years ago, but due to a moratorium placed by lOOT, was never constructed. Phase Two serves homes along Old Highway Road east of Radford. The Third Phase will serve homes along the south side of Old Highway Road from Radford to Cousins Road.

Middle Road Sanitary Sewer Extension (Annexation Area) A portion of this sewer was constructed as part of the Callahan Subdivision along Seippel Road. This segment will be extended to Middle Road once the annexation is complete. Another portion of this sewer will be constructed as part of the Industrial Park Expansion.

The City has made a continuing effort to extend the Heritage Trail system from the northerly City limits (32nd Street) to the Mines of Spain. The areas included in this system are: Jaycee Trail from Volunteer Drive to 16th Street; Heritage Trail extension (16th to Sycamore); and Powerline Trail from North Grandview to Mines of Spain.

-149- In the last year we have assisted four properties in connection to City sewer and worked with several others in the connection of their properties to City sewer through our various assistance programs. We are currently working on Phase I of the US 20 sanitary sewer extension to service seventeen properties west of the NW Arterial. Phase II and Phase III involve properties along Old Highway Road.

The purpose of the City's Inflow and Infiltration (I & I) is to decrease the extraneous stormwater inflow and groundwater infiltration into the Catfish Creek and downtown sanitary collector systems. This program will reduce the potential for sewer backups and line surcharging, reduce pumping costs, and assist in meeting effluent standards at the Water Pollution Control Plant.

The City's Inflow and Infiltration (1&1) Program has continued during 2003. The inspections are conducted to locate improper connections to the sanitary collector systems and identify potential inflow sources such as sump pumps, roof drains, and yard drains. In 2003, 1600 inspections are anticipated and have completed over 90%. Of the identified illegal connections, 75% of the property owners have corrected the illegal hookups.

Drainage Basin Master Plan Both North Fork Catfish Creek and Bee Branch watershed residents have realized the benefits provided by completed Drainage Basin Master Plan projects. The NW Arterial Detention Basin in the North Fork Catfish Creek watershed helped protect homeowners along Admiral Street and Keymeer Drive during the June 2002 rainstorm that resulted in a Presidential disaster declaration. In a similar fashion, the Carter Road detention basin provided protection for hundreds of residents that live on White, Jackson, Elm, Washington, and Kniest Streets during the rainstorm of May 2004. Because private property damage continues to occur during heavy rainstorms as predicted in the DBMP, putting the other improvements in the DBMP into service remains a top priority for the Engineering Division.

Stormwater Utility Administration Engineering staff continues the administration of the Stormwater Management Utility by answering questions from customers, providing Utility Billing with current billing units,and reviewing/establishing utility fee credits.

Stormwater Management Ordinance Development Engineering is currently drafting two ordinances that pertain to stormwater management. The need for a Stormwater Detention Ordinance has evolved due to the multitude of developments that have occurred in the past year and the need to ensure that stormwater controls such as a detention basin are constructed in a timely manner. The need for an Erosion Control Ordinance originated when the City Council established the need for an erosion control policy as a priority. In addition, the Federal National Pollution Discharge Elimination System (NPDES) - Phase II regulations require that the City of Dubuque must have an erosion and sediment control ordinance.

National Pollution Discharge Elimination System (NPDES), Phase II Program 1mplementation City staff continues to implement the stormwater quality program outlined in the NPDES permit issued by the IDNR and approved by the City Council in November of 2004..

-150- DEPARTMENT/DIVISION: Finance RESPONSIBILITY: Kenneth J. TeKippe, Finance Director

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Accounting/PayroII Continued to improve annual external audit process by increased City staff preparation of audit workpapers. Continued refinement and automation of audit process to limit external audit staff time, improve audit quality and allow for increased analysis of financial procedures and trends.

Maintained the centralization of grant reporting to more efficiently administer and improve accountability preparation for single audit. The number of grants administered at the federal and state levels has increased from 28 in FY'96 to 60 in FY'04 (approximately $30,000,000 received). Adhered to a citywide administrative policy for grant administration.

A finance intern position staffed by a local college student enhanced the service level by assisting with the annual audit, working with investment accounting and bank reconciliations, generating accounts payable and payroll checks and provided assistance for employees on vacation. A mutually beneficial relationship existed whereby the Finance Department received needed assistance while the student gained practical workforce experience.

Assumed the duties of administering economic development notes receivable.

Monitored third party billing and collections for ambulance services. Third party collection and Medicare/Medicaid compliance has improved versus in-house handling.

Provided instructions and training to additional departments for query to financial records.

Increased participation in payroll direct deposit program.

Treasury The City Finance staff and the Investment Oversight Advisory Commission collaborated to meet the objectives of the City Investment Policy. The policy includes safety of principal, liquidity, and maintaining a fair market yield on investments. The City has maintained compliance with the current investment policy as verified by the annual audit and Investment Oversight Advisory Commission. The transition to utilizing a fourth investment manager firm within the past two years has went well.

Utility Billing The City currently has 4,170 accounts on direct pay, which results in 21 percent of total utility billing accounts that take advantage of the direct payment service. Customer service continues to encourage participation in the service.

The sale of yard waste stickers continues to be valued by the pUblic. The sale of stickers by mail and billing through the customer's monthly utility bill continues to promote utilization.

Implemented desktop computer upgrades and continued training users on PC applications.

-151- Continued monitoring the billing procedures in connection with Engineering for recently implemented stormwater fee.

Utilized OCR's to improve accuracy and reduce data entry.

Financial Reporting Award The City of Dubuque Finance Department received the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association of the United States and Canada for the fiscal year 2003 Comprehensive Annual Financial Report (CAFR). This award is for governmental entities that achieve the highest standards in accounting and financial reporting. Fiscal year 2003 marked the sixteenth consecutive year that the finance department staff working with the independent CPA audit firm has earned the award.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Accounting/Payroll Evaluate the financial software currently utilized and determine functionality needed in our upgrade to Pentamation Plus Series.

Expand participation in the payroll direct deposit program.

Review procedures for potential implementation of on-line purchasing.

Improve usage of the financial system modules to take advantage of the capabilities of the financial system software. Enhance user inquiry and report generation for system users outside the Finance Department. .

Provide finance system training for end-usersas the City's computer network expands.

Coordinate with exempt organizations the issuing of franchise fee rebates.

Treasury Continue to evaluate cash management procedures to maximize interest earnings based on the market.

Expand the utilization of general ledger system to allow specialized reporting of receipts by fund.

Monitor expenditures of bond proceeds to verify compliance with established expenditure requirements.

Monitor Vision Iowa funds expended to comply with drawdown and spending requirements.

Comply with resolution specifying financial institutions as depositories of City funds and maintain deposit agreements with financial institutions.

Monitor investment of bond proceeds.

-152- Utility Billing Evaluate the utility software in conjunction with the financial software upgrade.

Monitor collection processes for delinquent accounts.

Monitor utilization of collection software to generate phone calls to delinquent accounts.

Work closely with the Parking Division on the Parking Ticket Software system.

Continue to assist with the Pay as you Throw Program with the Operation and Maintenance Department.

Financial Reporting The Finance Department continues to improve upon the level of service already established in accounting and financi~1 reporting. Keeping current with changes in reporting requirements and accounting standards are an integral part of this service. It is a goal to continue meeting the standards of the Government Finance Officers Association (GFOA) to achieve a seventeenth consecutive Certificate of Achievement for Excellence in Financial Reporting award.

Continue to implement and adhere to required Government Accounting Standards Board (GASB) financial reporting pronouncements and remain current with GFOA recommended financial accounting procedures.

The City was awarded the Municipal Treasurer's Association of the United States and Canada Certification of Excellence for its written investf1!ent policy in fiscal year 1995. The City of Dubuque was the first city in Iowa to earn this award. The award can only be earned once, however, our Finance Department goal is to continue meeting or exceeding the standards of the Municipal Treasurer's Association. The City was recognized for recertifying its policy in 1999.

Continue to receive unqualified audit opinion in the annual CAFR.

SUMMARY Responding to the needs and requirements of agencies, commissions, public and private sector entities, vendors, city departments and employees, and foremost the citizens of Dubuque, will remain the principle objectives of the Finance Department. An emphasis on customer service will continue to be an important part of our goals for future years. .

-153- DEPARTMENT/DIVISION: Fire Department RESPONSIBILITY: Dan Brown, Fire Chief

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

.The Dubuque Fire Department received grant money from the Federal Grant Program in the amount of $145,628.00 which was used to purchase 49 + 2 purchased with Drug Task Force grant new SCBA (Self Contained Breathing Apparatus) with several additional bottles. This equipment is CBRN certified which provides for use in chemical, biological, radiological and nuclear atmospheres. The SCBA's have a Scott Electronic Management System (SEMS) that allows the Incident .commander to Monitor personnel, their usage of air and alert them to evacuate in the case of danger and Personal Alert Safety System (PASS) devices that are integrated into the SCBA.; This is accomplished by telemetry through radio signal to the incident command. The fire department has trained and certified in the use of the SCBA's which complies with OSHA 1910.134 and NFPA 1981.

The department was again successful in applying for Assistance to Firefighters Grant from the Homeland Security Department for $30,100 to purchase a compressor, storage filter and fill station unit for refilling SCBA breathing air.

Three members of the Dubuque Fire Department attended a Hazardous Materials Symposium in Ames. This class allows for members of the department to interact with haz mat personnel across the state to review new equipment and methods.

One Assistant Chief and the Assistant Chief Fire Marshal attended a Command School in Clear Lake, Illinois.

Six members attended classes at the Fire Department Instructor Conference in Indianapolis.

The Dubuque Fire Department personnel documented 8591.97 hours of fitness training during fiscal year 2004. This was accomplished through the use of equipment and trainers funded by . federal grant money and local matching funds.

There were 64 service station inspections and 132 business inspections some with preplans done by firefighters in Fiscal 2004.

The Dubuque Fire Department in conjunction with Dubuque Police Department and other city departments helped to manage and staff events such as grand excursion and political visits.

Construction of new outdoor warning siren site in West Industrial Complex that services Bergfeld Recreation area and surrounding residential properties and the fairgrounds.

Added several intersections to our emergency vehicle pre-emption program. Soon emergency equipment will be able to respond from Fire Headquarters to the western city limits on US 20 without encountering a red traffic signal.

-154- Fire Training

The training division was able to achieve several goals this past year. The division was successful in writing and administering the Assistance to Fi"refighters grant for replacement of fifty-one self-contained breathing apparatus. The division was also able to implement a fee for service for confined space rescue agreements with various private industries in the city. In addition to basic and annual training presented to members the following are a few highlights of courses presented.

Along with the Iowa National Guard Civil Support Team, the fire department participated in a weapon of mass destruction drill at the Dubuque Regional Airport. This drill involved 29 department members as well as personnel from the police department, airport, emergency management, hospitals and county fire and EMS departments, and was designed and administered by the Center for National Response.

A partnership with Royal Oaks Development allowed us to complete 36 days of trarning using the former St. Dominic Villa property. Fire Department members participated in the following training topics at this site: ground ladders, aerial ladders, hose evolutions, haz mat scenario, roof ventilation, elevator rescue, rope rescue, large area search, forcible entry, firefighter entanglement and rescue. .

In conjunction with the Iowa Fire Service Training Bureau members completed a 12 hour course on Response to Anhydrous Ammonia Emergencies.

All members completed a four hour course on Aircraft Rescue and Firefighting presented by Jeff Reichman of the Kern County California Fire Department.

Haz Mat team members received a one-day course on use of computer programs to identify risks, collect informati.on, and model releases of hazardous materials. This course was proved and taught by Region VII of the Environmental Protection Agency.

The training division administered the physical ability practice session and test to firefighter candidates.

Firefighters received over 6 hours of instruction and information on physical fitness, nutrition, and back health. Also six members were certified as physical fitness trainers.

Three members attended the Iowa Haz Mat Symposium for two days in Ames.

Five members attended the Fire Department Instructor's Conference for 5 days in Indianapolis.

Emergency Medical Services

Assisted in the selection and purchase of automatic external defibrillators for Dubuque Community Schools. Every school in the district now has an AED. There are now in excess of fifty facilities (not counting our own or health care centers) in our city with defibrillators on the premises.

-155~ Provided assistance with lifeguard training for Flora, Sutton and Dubuque Golf and Country Club pool staffs.

Fifty-four of the department's eighty-nine-member force are now Paramedics.

Assisted the Red Cross with lifeguard instructor training. Lifeguards are evolving into health care providers, administering oxygen and using other adjuncts in resuscitative care. EMS Staff was involved in helping present several of these regional classes in Dubuque.

In Partnership with the Medical Associates' HMO Foundation, paramedic ambulances joined sports medicine physicians and athletic trainers in providing game side medical coverage at every single Hempstead, Senior, Wahlert, Loras and University of Dubuque home football game. This was our eighth season in this exceptional program.

We continue to be a training site for EMT and paramedic students to hone their clinical skills. Students from NICC, Mercy and Finley Hospitals and University of Iowa frequently train with our system.

We continue to partner with Mercy and Finley Hospitals to provide training to their staff and ours. We share many instructor resources for various certification courses.

Assisted in teaching a unit on spinal care for physical therapy and sports medicine students at Clarke College.

Paramedics remain an integral component of the police department's tactical response team. These medics train with the tactical team every month.

Established a program for management of medical information and advance directives for Ecumenical Towers

Became active in the Tri-Sate Corporate Safety group, meeting monthly with safety officials from various private sector enterprises

Provided informational seminars for all of the administrators and Nursing Services directors of the extended care facilities on the new Iowa out of Hospital Do Not Resuscitate law and the rules supporting it.

Successfully gained formal inclusion in the National Institutes of Health (NIH) Resuscitation Outcomes study. This five-year study will set the course for standards of care for years to come.

Provided instruction and certification classes in Cardiopulmonary Resuscitation (CPR) and use of Automatic External defibrillators (AED) for employees of other city departments.

Fire Marshal's Office

Fire Marshal staff worked with fire companies for training on business/pre-plan inspections for commercial buildings.

Fire Marshal's office worked with Housing Services to re-design the Rental Housing Inspection Program to make more efficient use of the fire company's times.

-156- Fire Marshal line inspector completed fire safety inspections of all public and parochial schools.

Fire Marshal's office worked with local sub-division developers on building a "trench burner system" as an alternative to costly removal of large amounts of trees and brush. This resulted in a new permit for land clearing.

Fire Marshal's office re-designed the fire lane ordinance developing new signage, curb markings and fines appropriate for maintaining emergency access to buildings.

Fire Marshal and other fire officials from across the state have joined together and formed the Iowa Chapter of the International Fire Marshals Association. This group meets every two months and works together to solve fire prevention issues and create consistency of fire code issues across Iowa.

Incidents

The Fire Department responded to four structure fires in Fiscal 2004 that sustained more than $50,000.00 in damages.

2001 Saint Joseph's Street with estimated losses of $187,000

2812 Pinard with estimated losses of $51 ,000

1395 Oeth Court with estimated losses of $50,000

1235 Mount Loretta with estimates of $200,000

FUTURE INITIATIVE FOR FISCAL YEARS 2005 AND 2006:

The Fire Department with the local Emergency Management office will host a table top exercise for the Emergency Operations Center (EOG) to update new employees and renew skills.

Adoption of the National Incident Management System (NIMS) and provide training to the employees and other entities.

Continue to partner with the Dubuque County Firefighters Association and Law Enforcement agencies on the Regional Training Center project.

Develop process for providing pre-plan information on bUildings at the scene on an incident.

Update the Code of Ordinances and adopt the 2003 International Fire Code.

-157- DEPARTMENTIDIVISION: Health Services RESPONSIBILITY: Mary Rose Corrigan, Public Health Specialist

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Childhood Lead Poisoning Prevention Program $20,409 wassecured from the Iowa Department of Public Health (IDPH) for medical case" management of lead poisoned children, along with community education and staff development.

Memorandums of Understanding are continuing with the Dubuque Visiting Nurse Association (VNA) to provide medical case management and communityeduc;ation.

Continuation of the HUD lead hazard reduction program was achieved through a $2.4 million award in October 2003.

Sanitary Sewer Connections The project of connecting all dwellings where City sanitary sewer is within 200 feet of the property continues, but is slowing due to the complexity and cost of many of the remaining addresses. Since 1995, 170 homes have connected to new sewer extensions, and 124 homes with pre-existing sanitary sewer have connected. Each year, more homes and businesses are added to the connection plan as they are found not connected to existing sanitary sewer. Additional connections will be scheduled over the next four to five years.

Food Inspections The number of temporary food stand permits continues to escalate, causing employees to be compensated with overtime pay versus compensatory time off. In 2002, two hundred and nineteen (219) temporary food stand permits were issued. In 2003, two hundred and ninety (290) were issued. Staff continues food inspection duty every weekend from May through mid­ October. In FY 2004, 309 temporary food stand permits were issued. The Environmental Sanitarian participated ina State task force to develop new jnspection software for use in field computers.

Animal Control Alternatives to contracting with the Dubuque Humane Society were explored and studied by staff and the City Council. However, a new 5-year contractual agreement was reached with the Humane Society.

City Health Care Committee The Public Health Specialist continues to serve on the Health Care Committee.

Urban Deer Management The Environmental Stewardship Advisory Commission renewed their recommendation to the City Council to continue the urban deer management plan through a bow and arrow hunt within the city limits and a zone around the city.

-158- The City of Dubuque's sixth urban deer harvesting project ended January 10, 2004. Ninety (90) deer were reported killed at the end of the season (137 deer were harvested the previous season.)

The annual aerial survey indicated the herd remained exactly the same as 2003, a total of 313 deer. The six seasons have resulted in six hundred and twenty-seven (627) deer harvested through the City's program. The Leisure Services and Health Services Departments coordinated the hunt, with assistance from the Fire Department, the Bait Shack and IDNR. All participants in the hunt were invited to a wrap-up evaluation meeting and chili supper. Feedback from the hunters was incorporated into plans for the 2004-2005 hunt.

Disaster Preparedness The Health Services Department participated in the Regional Public Health Strategic National Stockpile disaster drill. Health continues to assist Emergency Management in the grant applications to the Department of Justice (through the Iowa Department of Emergency Management.) Additional funding will be used for emergency response equipment and supplies. Staff also participated in the emergency response plan for the hospitals. The Public Health Specialist is the designated County representative for Region 6 preparedness planning.

The Environmental Sanitarian completed the University of Iowa's Center for Public Health Preparedness "Train the Trainer" course. The Environmental Sanitarian Assistant is now enrolled. Funding for preparedness in FY 04 was $15,804.

Mosquito Monitoring Program In addition to encephalitis monitoring through mosquito collection and chicken flock antibody testing, funding for West Nile Virus surveillance continued from the Iowa Department of Public Health. These funds helped cover the cost of additional surveillance, community education, and mosquito reduction.

Community Health Center The Public Health Specialist authored the second and third grant application attempts for a Federally Qualified Health Center (FQHC) and also was a delegate of the Dubuque Chamber visit to Washington, DC in February 2004. Funding was again denied in October 2004.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Sanitary Sewer Connection Enforcement. The Health Services Department will continue its implementation of the plan to connect the homes in Dubuque where City sewer is available within 200 feet of the property line. Of the original 186 properties identified in 1995, 59 remain to be connected. In addition, sewer connection orders for newly constructed sewers to un-served areas will also be generated and enforced.

In conjunction with the BUilding Services Department, the Engineering Division, and the Utility Billing activity, the Health Services Department struggles to achieve accurate record keeping and documenting when sanitary sewer connections are made. A plan for available sewer connections will also be developed for newly annexed areas.

Each year this effort continues, the more difficult and costly connections are brought forward. Therefore, feasibility and costs of connections will be figured prior to notices being sent. A sewer connection informational handout is being developed and will be sent with all sewer

-159- connection orders. A letter to realtors will also be sent, updating them on the project. The financial assistance programs remain crucial to this project.

Childhood Lead Poisoning Prevention Program. Community education and outreach continues through neighborhood health and safety seminars, which will incorporate lead poisoning prevention education, along with participating in community events to advertise and educate on childhood lead poisoning. Iowa Department of Public Health funding for these and other childhood lead poisoning prevention program activities was increased to $19,730 from $18,970. However, this funding is still lower than FY 2002.

A $2.4 million HUD Round II lead hazard reduction grant was received in September 2003. This grant will run for forty-two months.

Disaster Preparedness Staff will continue to assist in developing the County and regional emergency plan and the Strategic National Stockpile (SNS) plan, along with educating health professionals on smallpox vaccination. Public health is a key component in disaster preparedness and response. The Public Health Specialist will also be assisting in educating health care professionals and the community on many aspects of public health preparedness.

The Public Health Specialist serves on the State (IDPH) CDC Cooperative Agreement committee.

Funding received so far in FY 05 is $24,553. Preparedness funding is used for equipment, supplies, travel, training, staff time, and community educational materials. Funding to State, Region and County was reduced for FY 05 due to Federal cuts.

Food Inspections The Iowa Department of Inspections and Appeals (DIA) is developing new software and piloting new computers for field use during inspections. Local jurisdictions will be encouraged to follow suit.

Nuisance Control Health Services Department is utiliZing a (complaint) "Incident" tracking software system.

Community Health Center The Tri-State Community Health Center Board of Directors is planning alternatives to FQHC funding.

-160- DEPARTMENT/DIVISION: Housing and Community Development RESPONSIBILITY: David Harris, Director

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Community Development Activity TheCommunity Development Commission approved $149,605 in Community Partnership (cp2) Program awards to six agencies: Audubon Elementary School for a summer school reading program; Visiting Nurse Association for an elderly home-based dental program; Project Concern for a prescription drug card program for seniors; Four Oaks Inc. of Iowa for the Housing Education And Rehabilitation (HEART) program for vocational training for at-risk youth; Scenic Valley Agency on Aging for assistive devices for the elderly; and the Tri-State community health center.

In reallocating prior year CDBG funds, the Commission approved $154687 to the Historic District Public Improvement Projects Program, which had not initially been funded due to budget cuts. The funds provided for the installation of historic street lights on Loras Boulevard from Bluff to Prairie Streets.

Neighborhood Activities The Neighborhood Grant Program provided $21,882 in assistance to .five neighborhood organizations and eight non-profit community organizations to support 23 different programs and projects in low-moderate income areas of the City. Funded projects included mentoring programs, summer enrichment programs for youth, family reading programs, neighborhood resource fairs, neighborhood family concerts, neighborhood newsletters and neighborhood clean-ups and beautification programs.

Other Community Development Activities Other CDBG assistance throughout the year was provided to the Information and Referral and Child Care Resource and Referral programs administered byProject Concern; Dubuque Area lifeTime Center; the Washington Tool Library; construction of accessible curb ramps; asphalt street overlays on streets in low-income areas; and sidewalk improvements for low-income property owners.

Housing Rehabilitation Activity We continued administration of a number of housing rehabilitation-loan programs, for both owner-occupied housing and rental units. Eight apartments were completed or in the process of rehabilitation, using $71,515 in City funds, matched by $67,500 in owner/lender financing. Activities include the following programs: Moderate Income Rental Rehab, Emergency Repair, Accessibility Rehab, Single Room Occupancy Rehab and Rental Rehab (HOME). The City investment sources were Block Grant funds, the Iowa Department of Economic Development's HOME Program and HUD Special Purpose Grant funds.

-161- CDBG-funded rehabilitation assistance was provided to 41 low-moderate income homeowners, using a combination of City programs. These included the Homeowner Rehab Program, providing long-term, low-interest loans; Sanitary Sewer Program, designed for repair and connection to City sewer; Operation Paintbrush and Operation Upkeep, providing small grants/loans for exterior paint and improvements; and the Historic Preservation Program, providing small grants for exterior improvements completed according to historic standards.

In all, the City invested $296,912 in homeowner improvement projects in FY2004.

Work on the Five Points comprehensive neighborhood revitalization project continued. The first home was completed and sold to a qualifying first-time buyer household. An adjacent two-unit has also completed rehabilitation work. Three properties are being rehabilitated under the HEART ("Housing Education and Rehabilitation Training") Program. A commercial property owner has committed to rehab two of his homes in the area. Gateways to Home is now negotiating to purchase the former Washington Neighborhood Center. And the corner, signature building, owned by John Gronen, is now undergoing rehabilitation.

This project was designed to provide sufficient incentives to encourage all owners in the neighborhood to rehab their properties, to restore the appearance of the area to its turn-of-the­ century origins. Funding provided by the City includes a 2002 IDEO HOME Program grant of $202,000; plus CDBG, HUDSpecial Purpose Grant and Lead Paint Program funds, totaling approximately $500,000 in public assistance.

A positive development for this effort is the work of the HEART Program. This is a collaboration between the Housing Department and the Four Mounds Foundation, owner of three Five Points properties. Additional partners include the Four Oaks agency, whose alternative high school students provide carpentry labor through a Dubuque Community School District-approved curriculum training program. A City Community Partnership Program grant provides funding to Four Oaks, to employ a skilled on-site construction supervisor. The School District provides an on-site classroom teacher.

The Housing Department successfully applied for a $100 000 State Housing Trust Fund Program grant from the Iowa Finance Authority (IFA) to subsidize purchase of the three HEART project properties. Other assistance has been received from the Dubuque Racing Association and the McKesson Foundation, the result of a grant submitted by Loras College. In order to qualify for the Finance Authority award, the City Council approved an ordinance allowing Dubuque's Housing Trust Fund independent financial management authority for grants received under IFA's Trust Fund Program.

Home Purchase Assistance Tl;1e Housing Department places a high priority on assistance to first-time homebuyers. In FY04, 19 homes were financed with CDBG funds, for first-time purchasers, and totaled .$95,000 in City investment.

We received a $100,000 award from the Des Moines Federal Home Loan Bank (FHLB), in support of our first-time home buyer assistance programs. Very low-income (below 50% area median) families will receive $4,000 grants toward down payment and required rehabilitation costs. This is our third FHLB award, totaling $680,000 to date. 63 families have purchased their first homes using these funds since 1999.

-162- The remaining three West 8th Street condominiums were sold to low-moderate income first-time buyers. This $400,000 5-unit, new construction development was subsidized with a $100,000 grant from the Department of Economic Development (lDED). This demonstration project was funded to test the feasibility of providing affordable homeownership to families living and working in downtown neighborhoods.

Total private investment match for all homebuyer programs - from the buyer families, State funds, and area lenders - equaled $1,209,524 during the fiscal year.

The National Association of Housing and Redevelopment Officials (NAHRO) recognized Dubuque's Family Self-Sufficiency (FSS) Program with a National Award of Merit. Our second annual "Road to Success" jobs fair earned this distinction in NAHRO's program innovation category. At this event, FSS heads of household participate in mock job interviews, receive critical feedback and also "shop" for good business clothing donated by Housing Department and other City staff.

For the Self-Sufficiency Program, we obtained a $25,000 HUD grant to provide homeownership and financial counse,ling for all FSS participants. With these funds, we subcontracted with the ISU-Dubuque County Extension Office. Extension counselors meet with all 45 FSS families throughout the year, preparing them for financial independence and possible homeownership.

General Housing Inspection Activity

Housing Code Enforcement CDBG funds are used for housing code enforcement in targeted downtown neighborhoods. More that 590 inspections and re-inspections of rental units were completed, with a total of 8000 violation notices cited and/or corrected. Inspectors adhere to the "broken window" theory, which holds that code enforcement must be vigilant to the first signs of disrepair in a neighborhood. Whether these be graffiti, an abandoned vehicle or a broken window,if left unattended they will signal a lack of civic commitment to maintaining a neighborhood.

Lead Paint Hazard Reduction Dubuque's Childhood Lead Paint Poisoning Prevention Program continued operations with renewed HUD funding; 117 units were inspected and 9 completed, after the grant was received in October 03. Trainings and certification classes were provided to 168 contractors, workers

-163- and property owners. A total of 370 hours of both classroom and on-site training was offered by Department inspection staff.

A $2.4 million award was received from HUD's Lead Hazard Reduction Program to continue efforts to reduce lead paint poisoning. New inspectors were hired to begin an initiative to make another 250 housing units 'lead-safe." This award brings the total of funding the Housing Department has received under HUD's Lead Program to $6 million since 1997. We work with the Health Services Department and the Visiting Nurse Association in partnership in the program.

Additional Program Activities As a result of the HUD Family Self-Sufficiency Program Coordinator grant award received in the amount of $65,508, the FSS Program was continued for an eleventh year. This program supports 45 families toward financial independence through counseling, referrals and educational programs.

The Crime Free-Multi Housing Program, jointly sponsored by the Housing, Police,Legal and Human Rights Departments, was again offered to landlords in FY04.

The City Council approved a second "affordable housing subdivision," offering financial incentives to developers who agree to limit lot and house sizes. The purpose of this initiative is to produce new single family homes affordable to moderate-income families. The new Westmark Subdivision is located on Dubuque's far west side. A third affordable subdivision was in planning stage at fiscal year-end.

This year the Housing and Community Development Department took on the additional responsibility for relocation of families on 32nd Street, as part of the City's Bee Branch Drainage Basin Master Plan activities. Sixteen houses on 32nd Street will be purchased and either demolished or relocated in order to double the storage capacity of the existing storm water detention basin. In addition to acquisitions, staff work with the families to provide relocation benefits and to assist them in locating and moving into replacement homes.

We assisted a developer to obtain Low Income Housing Tax Credits, from the Iowa Finance Authority, for a significant downtown rehabilitation project. Gronen Restoration will rehab 30 upper-story apartments - many vacant for 40 years or more - and 14 storefronts in the Upper Main area. The award, of $3.6 million, was among the largest in the State this year. Since 1990, we have assisted developers obtain more than $17 million in housing tax credits from IFA for affordable housing projects in Dubuque.

The Council approved expansion of the urban revitalization district for the Davis Place complex on Garfield Avenue. This designation allows a developer a 1O-year abatement on additional taxes resulting from improvements to a property. In this case, the developer, Scott Potter, will construct another single-room occupancy (SRO) facility for indigent men, adding 12 rooms to the complex now providing 36 rooming units. The Council also approved a resolution of support for an application to IDEO for a HOME Program grant for this project, which was subsequently awarded in the amount of $500 000 for construction and development costs.

The Comprehensive Downtown Master Plan - first proposed at the 2000 Housing Summit sponsored by the Housing Department - was approved by the City Council. This plan proVides a blueprint for a comprehensive approach to improving the downtown as a place to work, to live and to recreate. A multi-year implementation process is now in design, which will include Capital

-164- Improvement Budget requests for Council consideration pius additional partnerships with other private partners in the downtown community.

Housing Department staff worked closely with the Dubuque Community School District in planning for a new downtown school, to replace Prescott elementary. Through a 6-month citizen participation process, a downtown site was selected. Staff from several City departments continue to work with a District planning committee, toward the goal of including community oriented facilities and programs in the new school, scheduled to open in August 2006.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Completion of the Five Points area comprehensive neighborhood revitalization project, involving historic restoration of 30 turn-of-the-century homeowner and rental properties.

Initiation of a comprehensive neighborhood revitalization strategy for the Washington Street Neighborhood, encompassing a 55 square block area from 11 th to 22nd Streets. This project will include emphasis on increased owner occupancies, intensified rehabilitation-loan activities, targeted code enforcement, public improvement projects and development of neighborhood leadership.

Completion of the HEART Project, which is a partnership including the Dubuque Community School District, the Four Mounds Foundation, Four Oaks and the Housing Trust Fund Commission. Four homes will be restored and sold to income-qualifying, first-time buyers in the Five Points neighborhood.

Continuing implementation of the action steps from the Downtown Comprehensive Plan approved by Council in FY04.

Completion of acquisitions of 32nd Street homes, for expansion of the existing stormwater detention basin, part of the Bee Branch Basin mitigation plan.

Continuing efforts to develop a local America's Promise organization.

Improvements and facility expansion at the 18th Street office building for the Housing Department.

Completion of the HUD-required 2006-2010 Consolidated Plan for the community development program.

Implementation of the. Permits Plus data entry system for the housing code enforcement activity.

Continuing to build partnerships with other community agencies to respond to the needs of downtown newcomer families. .

Maintaining the solvency of the Section 8 Program as continuing federal funding reductions challenge our operations.

Spending down the HUD Round 11 Lead HazardReduction Grant, of $2.4 million, on schedule, in order to qualify for renewed funding in FY07.

-165- DEPARTMENTIDIVISION: Human Rights RESPONSIBILITY: Kelly Larson, Director

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Human Rights Enforcement Staff resolved a total of 526 "intakes," with 53 cases resulting in formal charges. An "intake" is a reported incident that has the potential for developing into a formal complaint. A total of 47 cases were closed. As a result of a continued emphasis on enforcement, staff completed the year without a significant case backlog despite a rise in the number of formal complaints filed.

Major Cases Following a lengthy investigation by staff, an Administrative Law Judge determined there was probable cause to believe that a Caucasian female was fired in retaliation for opposing the treatment that African-American guests received at Respondent's business. During the investigation, a co-worker admitted that she had instructed the Complainant to put black guests in certain rooms located in the back of the business. The Complainant was fired shortly after she voiced her opposition to this treatment of guests to the owner. Complainant sought only back pay for the time period during which she was unemployed, and agreed to a settlement in the amount of $2,000.

Based on the results of a several month investigation, an Administrative Law Judge determined there was probable cause to believe that an older male employee was terminated by a young, female manager because of his gender and/or age. The ALJ concluded that there was evidence that the complainant's performance difficulties were a result of an unequal distribution of work, with younger employees in particular being assigned fewer responsibilities.

A mediation agreement in the amount of $500 was reached in a case where the complainant charged an area landlord with race discrimination after being denied the opportunity torent an apartment. The complainant stated that when she met with the landlord to view the apartment, he told her that she would need $650 up front in order to hold the apartment. She further stated that when she called the landlord later that day to inform him that she had the money, the landlord stated that he had previously promised the unit to another person, a white male, although he had not required any payment upfront from this other individual.

A local business agreed during mediation to improve the accessibility of its seating area and to provide a designated table for persons with disabilities after meeting with the complainant, a woman who uses a cane. She had filed a charge with the office because the tables at the restaurant were positioned so close to one another it created an inaccessible path for her throughout the seating area.

A mediation agreement in the amount of $2,500 was reached in a case where an African­ American male, who was the only black employee at a local business, alleged discriminatory treatment by his supervisor. The complainant stated that his supervisor would not speak with him when he attempted to address work concerns, would call him back from breaks earlier than white employees, and ultimately terminated him because he was unavailable to come in to work

-166- on his scheduled day off. The complainant stated that other employees were allowed to decline working on their scheduled day off, and there were other racial minorities concerned about the equality of treatment in the workplace.

A young man with bi-polar disorder filed a complaint alleging that he had been denied a reasonable accommodation by his employer. Upon reviewing the complaint and response, it became apparent that there had been a breakdown in communication due, in part, to complainant's mental capacity and his tendency to outbursts. The company expressed a willingness to accommodate the complainant and, after many hours of effort, a level of trust was established with the Complainant sufficient to result in the negotiation of an accommodation with the company.

A female physician filed a complaint alleging that she was retaliated agaillst after she pointed out that she was paid less than male physicians with similar responsibilities. She also provided evidence that another female employee who expressed similar concerns aboutthe pay differential between male and female physicians had been terminated. The case resulted in the complainant obtaining a right to sue and bringing an action with her attorney in district court.

A person with a disability filed a complaint against a local company that had a policy prohibiting people with work restrictions from maintaining employment. The policy appeared to violate the law because it did not allow for an interactive process to evaluate the possibility of an accommodation. The complainant obtained a right to sue and pursued his claim in district court.

Hate Incidents Staff compiled a hate incident response plan designed to better coordinate information sharing amongst city departments that might encounter hate incidents in the community, and to facilitate prompt response and victim support.

Staff responded to approximately nine hate incidents reported to the department, providing victim support and referral, graffiti removal, and assistance in filing for victim compensation with' the State.

Substantial Equivalency The Department remained certified as a SUbstantially equivalent agency by HUD. Such certification is contingent upon an ongoing performance review by HUD representatives. Staff continues to meet the requirements of complying with rules and regulations for case processing established by the U.S. Department of Housing and Urban Development. In addition, staff has continued to meet HUD's demands for attendance at numerous training sessions.

Education and Outreach Programs Staff continued to provide outreach and educational programs to various clubs and organizations, businesses, schools, and city departments.

Staff continued to develop and publish an ongoing question and answer column on civil rights issues entitled, "Human Rights: They're Our Rights" which appears monthly in the Telegraph Herald.

The Director met with a representative from the University of Wisconsin to discuss study circles.

Staff created a resource brochure to assist new families arriving in DUbuque.

-167- The Director and City Solicitor provided five, two-hour civil rights training sessions for all city staff.

The Director spoke to a Human Resources Management class at the University of Dubuque on discrimination in employment.

The Director spoke to sociology students from the University of Platteville, Wisconsin, on human rights issues.

. The Director served as chair o(the planning committee for the Martin Luther King holiday events, which culminated with a breakfast and other activities on January 19.

The Director participated in a panel discussion at Friends of the Community regarding welcoming new residents.

The Commission Chair spoke to staff and residents at the Maria House on women's issues.

The Director spoke to students at Clarke College regarding careers in human rights.

The Human Rights Commission produced the booklet "People We All Know" and distributed it throughout the community to raise awareness about issues surrounding discrimination based on sexual orientation.

A Commissioner spoke to the Friends of the Community regarding sexual orientation subcommittee work.

Staff participated in City Expo which served as means of distributing educational materials to residents.

The Director met with the Clarke College Human Rights Action Group (HRAG) to discuss opportunities for HRAG involvement in the community.

The Director spoke to the Rotary Club on welcoming new residents.

The" Director staffed an information booth at the Northend Neighborhood Resource Fair at Audubon School.

A Commissioner spoke to students at Central Alternative High School on human rights issues in general.

The Director spoke to Marshallese residents regarding eligibility for public benefits.

The Human Rights Commission made efforts to communicate with newcomers regarding their experiences and concerns in the community through the work of the welcoming newcomers subcommittee. .

The Commission worked with Dubuque Community School staff addressing youth regarding drug use, violence and other human rights topics.

-168- The Commission surveyed local businesses for accessibility for persons with disabilities and offered suggestions for low-cost reasonable solutions that will improve access for persons with disabilities.

The Commission, in collaboration with other organizations, continues to work to create a welcoming environment, especially for residents in the downtown area who struggle socially and/or economically and empower newcomers to have a stake in their local neighborhoods and the larger community.

The Director served on the planning committee for the October 23, 2004 downtown faith summit sponsored by Mississippi Valley's Promise.

Staff completed the following new brochures: one on accessibility and temporary events to be handed out with temporary event permits; one on readily achievable accessibility changes to be handed out to businesses through the Building Services Department; one on fair housing accessibility requirements to be handed out to contractors through the Building .Services Department.

Fair Housing Education and Training The Director met with area lenders, and representatives from the Housing Department and ISU to discuss predatory lending and increasing lender support of first time homebuyers. ISU has agreed to add a session on predatory lending to thier home buying class.

The Director spoke to the managers of Applewood Apartments on fair housing law.

Staff mailed the Human Rights Department's Fair Housing Guide to all section 8 rental assistance households.

Staff sent letters to downtown churches offering an educational session on fair housing to their congregations.

The Human Rights and Housing Services Departments sponsored a free workshop entitled, "Home Access Modification and Barrier Removal Workshop" to educate the community about accessing local, state and federal funding sources to improve housing options for people with physical, cognitive and sensory impairments.

The City Council issued a proclamation, and throughout the month of April, staff ran fair housing advertisements on radio, television, billboards and buses in recognition of fair housing month.

The Director presented a session for landlords on fair housing as part of the Crime Free Multi­ .Housing Program.

Staff distributed fair housing promotional items and information to approximately 2,500 Dubuque residents at City Expo.

Cooperative Agreement with the Iowa Civil Rights Commission Staff successfully negotiated and completed another cooperative agreement with the Iowa Civil Rights Commission, which generated additional revenue.

-169- Dubuque Dispute Resolution Center Staff continues to manage and market the Dubuque Dispute Resolution Center. This Center provides mediators who listen carefully to citizens who agree to have their disputes mediated. Options for settlement are identified through structured communication between the disputing parties.

Police and Fire Recruitment The Director participated in police and fire recruitment efforts; including serving on interview hiring panels. .

Strategies to Overcome Impediments to Fair Housing Staff continues to identify, support and implement strategies to overcome impediments to fair housing in Dubuque.

Accessibility Compliance Staff continued collaboration with the Building Services Department to ensure compliance with the requirements for accessibility under Chapter 27.

Staff continued to organize the ADA Committee and oversee city compliance with accessibility requirements.

Staff/Commission Training The Director and three commissioners attended Iowa Civil Rights Commission sponsored training for local human rights agencies.

Staff and three commissioners attended the 2004 National Fair Housing Training Conference and Housing Policy Conference in Washington, D.C.

The Director and a commissioner traveled to Washington, D.C. to attend the HUD National Fair Housing Training Academy orientation and briefing session.

The City Solicitor attended the Regional Fair Housing Training Symposium sponsored by the St. Louis Fair Housing Collaborative.

The Intake Specialist traveled to Kansas City to attend HUD sponsored Fair Housing Assistance Program Intake Training.

The Director and Intake Specialist traveled to Kansas City to attend HUD sponsored training on TEAPOTS C!nd case file organization.

Staff and two commissioners attended the 2003 Western Regional FHIP/FHAP Conference in San Diego.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Enforcement Staff will continue scrupulous enforcement of our local civil rights ordinance by thoroughly investigating complaints of discrimination and aggressively pursuing settlements an<;l/or public hearings where there is evidence of discriminatory behavior.

-170- Hate Incidents Staff will continue to provide support for victims of hate incidents in the community.

Education and Outreach Staff will encourage the Commission to engage in a broad-based marketing campaign to raise awareness of the Human Rights Department and its work.

Staff will encourage the Commission to increase outreach to people of color in Dubuque by developing relationships through the work of the subcommittee on welcoming newcomers.

Staff will continue to assist the Americorps VISTA member, whose work is focused on welcoming and empowering new residents of various backgrounds.

Staff will continue to provide support to the Human Rights Commission as it continues its outreach and education activities under its four goals related to sexual orientation, human rights in the schools, accessibility of local businesses, and welcoming newcomers.

Staff will continue to server on the Dr. King holiday planning committee.

Commissioners will plan and promote the 4th Biennial Human Rights Banquet

Faces & Voices The Director will continue to serve on the steering committee for Faces & Voices under its new structure. The new structure will focus primarily on promoting diversity events occurring throughout the year in the community.

Fair Housing Education and Outreach Staff will distribute fair housing brochures, videotapes, and other informational materials throughout the community.

Staff will.increase outreach to people of color in Dubuque by developing relationships with faith­ based organizations that have significant minority membership, and also through one-on-one connections with people of color in the community.

Staff will engage in a broad-based marketing campaign to raise awareness of the Human Rights Department and its work, including renting space on buses for fair housing posters, purchasing fair housing billboards, and running radio and television ads.

Staff will work to address impediments to fair housing, including the perception that Dubuque is not a hospitable community for outsiders, by working to increase positive interaction amongst new and established residents of different backgrounds.

The Director will sponsor a fair housing segment as part of the Crime Free Multi-Housing initiative by the Police Department.

-171- DEPARTMENT/DIVISION: Information Services! Data Processing RESPONSIBILITY: Chris Kohlr"l1ann, Information Services Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

1. Replacement of personal computers, servers and printers throughout the City.

During FY04, Information Services staff specified, recommended, purchased, installed and configured approximately 75 personal computers and 35 printers. Computers replaced were those that were at least four years old. The number is higher than planned due to additional units installed at the new jail.

2. Installation of new servers and storage area network

During FY 04 three new servers were installed along with access to a storage area network. The storage area network gives an ability to share large amounts of storage among multiple servers and increase storage needs "on the fly." Data from systems residing on the storage area network include document imaging, GIS, engineering user files, event scheduling, permit tracking, updated Pentamation applications and database and fire incidents.

3. Upgrade of network to Gigabit backbone

During FY 04 the backbone of the City's wide area network was upgraded from 155Mbps to 1000Mbps speed. In conjunction with this project, network connectivity equipment was replaced at City Hall, City Hall Annex, Fire, and DLEC. The performance and reliability of equipment has been improved with this upgrade.

4. Installation Steel Cloud internet filtering and monitoring.

As part of decision package approved for FY 05, internet filtering and security monitoring hardware and software have been installed and are operational. The hardware device provides for improved security and monitoring and notifications of attempted intrusions to the City's network. Internet monitoring and filtering software, filter and block web sites access that are of objectionable content or inconsistent with the City's Appropriate Internet Use policy. Employee internet activity is logged, stored and available for reporting to department and division managers. In conjunction with this project, an improved firewall was installed to block outside access from unauthorized users.

5. Training

In partnership with Northeast Iowa Community College Information Services facilitated curriculum planning, registration, billing and classroom assistance for training in four levels of Word and Excel and one level of Power Point and Publisher during FY04 and FY 05. Fourteen sessions of Word Training were held training 205 employees, 17 sessions of Excel _training were conducted training 265 employees, 2 sessions of Power point were held

-172- training 31 employees and 2 sessions of Publisher were held training 25 employees. All classes were held at the NICC Downtown Center for Professional Development.

6. Continuing support for DLEC.

Information Services staff continues in the role of providing support for automated systems at the Dubuque Law Enforcement Agency. Staff is providing systems, desktop, mobile, network and operations support for all end-users at DLEC. Staff participates in a City­ County group to discuss the present systems installed at DLEC as well as to discuss future options for automated systems.

7. GIS

Work continues in the Engineering, Water and Planning Departments to bring all data up to a current state and continue maintenance on a regular schedule.

Information Services staff has assisted with coordination of training, projectand conversion management, installation and maintenance of hardware and software, and programming. City and County staff have continued in a data sharing program.

Departments using GIS in FY04-05 included Planning, Engineering, Water Distribution, Police, Economic Development, Health, Building and Airport.

8. Continuing Support and Trouble Shooting

Staff continues to offer daily support to end-users in the areas of software problem determination, debugging, hardware maintenance and repair and procedural problem solving. As more end-users are added, this area of support has grown.

9. Standardization of Desktop Computers

Beginning in FY02, Information Services staff led a standardization task force consisting of end-users and IS staff. The goal of this group is to implement standard policies and procedures for all users of technology in the City. The standards resulted in a more secure and maintainable computing environment for all users throughout the City. In FY04 a written Acceptable Use Policy was made an Administrative Policy of the City.

10. Support of Greater Dubuque Development Corporation

Staff continues to provide support for end-users at Greater Dubuque Development Corporation. This site utilizes a local area network, extensive Internet access, complex presentations and work with a variety of software packages. Work has included consistent review and evaluation of their current system, recommendation for system (hardware, software and network) upgrades and changes. Staff serves as a resource for trouble shooting problems and software questions.

-173- 11. Continuing system of backups, virus detection and inoculation and off-site storage.

Staff continues in the role of steward for all data maintained on the central servers by maintaining a system of regular backups and off-site storage. Staff also has taken a proactive role in obtaining up-to-date virus detection and inoculation software and implementing it on personal computers throughout the City. Efforts continue to educate end­ users on steps to be taken in order to prevent infection from virus. The City's e-mail provider has begun a service of virus and spam filtering reducing the number of calls for service due to virus infection. Beginning in FY04 an increasing number of systems were compromised by spyware. Six calls were responded to where systems had been severely damaged by spyware infection.

12. Permit Tracking

During FY 04-05 staff continued work with users of Permit Tracking in Planning, BUilding, City Clerk and Engineering departments on the implementation of enhanced reporting and functionality to the permit tracking system. Using software from Accela, the system now has the ability to create work orders ·for stormwater utility changes. An upgrade to utilize the SQL database was done in FY 04. Housing services began work to add rental license and inspection processing. The City has utilized Permit Tracking since February of 2001.

13. On-Call

During FY01, Information Services instituted off-hours computer assistance. This service is available on weekends and holidays to staff in any department or the City Council needing assistance with City-related technical questions or problems. Much work is done remotely from home or via phone, with some on-site assistance needed. Typically staff will receive 1 - 3 calls on the weekend.

14. Network Support

Beginning in FY02, Information Services began a monthly schedule of network maintenance for troubleshooting and preventative maintenance on all servers and network equipment. This time allows for updates and work that keeps equipment on current levels of software and testing that cannot be done while end-users are utilizing the equipment. During the network support time, end-users are encouraged to perform regular maintenance tasks on their individual pc's and printers. This maintenance time continues to be a very proactive way of addressing potential server issues".

15. Grand River Center

In FY05 specification and purchase of a VCON video conferencing system for Grand River Center was completed. The video conferencing system provides real;.time video and audio for users wishing to conduct meetings at multiple sites. The City Council Goal Setting Session was the first meeting to utilize the technology. Information services facilitated a meeting to better educate Grand River staff on the technology installed and how to optimally use it.

16. Parking Ticket System

Staff continues to work with the end-users and the vendor to provide enhancements and bug fixes to the software.

-174- 17. Remote Administration of Desktop Computers

IS will continue to strive for utilizing automated tools that allow for better and more efficient administration of desktop computers. Much work has been done to monitor and trouble shoot computers from Information Services offices rather than traveling to remote locations making response time faster. As applications maintenance responsibilities continue to grow, and the complement of staff does not, this is becoming a vital tool for addressing systems support needs.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

1. IS. staff will continue to offer systems, development, network and database administration for the Geographic Information System. IS staff members will work with individual departments and work groups as projects are designed and developed. IS will maintain a leadership role in the project insuring its momentum and implementation for the City. It is anticipated for FY05 and FY06 will work specifically with Water Distribution and Airport on enhancements and updates to their GIS applications.

2. IS will continue implementation of high-speed data communications (wired and Wireless) to City facilities. Beginning in FY05, IS will work with telecommunications vendors to specify and implement high speed data connections via fiber optic cable to all Fire Stations over the next five years giving added stability and performance to those locations. IS will also work with vendors connecting the City's new Operations and Maintenance garage to the City's fiber optic network.

3. IS will work with the software vendor and Finance department employees to convert their data and reports to a new version of the City's Financial and Billing systems in FY05 and FY06. The new system involves a major conversion and will update the application to a more "windows-like" look and feel. More reporting tools will be available for the end-user.

4. IS will continue to provide a stewardship role, in determining a responsible implementation and use of all of the City's networks and computer resources. IS staff will continue to work toward standardizing the end-user's desktop to provide for the most functionality to the user while not compromising the maintainability of the system. IS will work to educate employees on the specifics and importance of standards.

5. IS will provide continuing one-on-one and coordination of group training opportunities to meetthe needs of new and existing users. The focus for these training opportunities will include basic computer operation, operating systems, Internet Explorer, Excel, Word and GIS software. Other topics could be included as the needs present themselves. IS will strive to work in partnership with area schools and training companies to provide this training. IS will also look for web-based training opportunities.

6. IS will continue to recommend and install updates for various applications and hardware as needed. These will include specification and replacement of "aging" personnel computers and printers.

7. IS will continue to provide leadership and direction to the web-site development project to insure it meets the end-user's needs in terms of functionality and reliability. IS will work with departments in implementation of various applications of "web-enabled" technologies such as payment of fees or inquiry of mapping data via the Internet.

-175- 8. IS will work to deploy the Incident Tracking system to all departments in the City. The Incident Tracking System is used to log complaints and inquiries from citizens and staff.

9. IS will work to deploy Documenting Imaging technologies to all departments in the City. IS will install, software and work with departments on design and implementation of the technology in the departments.

10. IS staff will continue to work with departments in FY 05 and beyond on development of an Action Plans for Technology. This activity will work with departments in applying a visioning process to determine where technology can assist their operation. This provides a better "road map" for individual departments as well as looks at each area and how they fit into an organizational "road map."

11. Staff will work with each department to draft disaster recovery plans. The disaster recovery plans address how a department will conduct business should a key component of technology or data communications should fail or become unavailable. With a rising dependence on technology it is important to identify those areas and document how business could be done without it.

12. IS staff will continue to pursue opportunities for outsourcing some of our services where applicable.

13. IS will work with departments on implementation of "tablet-based" field computing. The specific departments interested in embracing this technology include Building,'Water Distribution, Housing and Engineering. Work with Police and Sheriff's departments on the implementation of new mobile computers will be done in conjunction with this work as well.

-176- DEPARTMENT/DIVISION: Legal Department RESPONSIBILITY: Barry A. Lindahl Corporation Counsel

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Approximately 300 civil infractions were processed during the 2003-2004 fiscal year, involving zoning, health, housing, fire, police and other code violations.

Prosecution of misdemeanors and civil infractions generated $150,749.53.

The Legal Department handled the defense of several workers' compensation claims, resulting in approximately $15,000 savings in costs for outside legal counsel.

During the 2003-2004 fiscal year, the LegalDepartment has been involved with the defense of seven civil rights claims at no cost to the City for the defense, resulting in a savings of approximately $20,000.

The Legal Department provided legal representation to various City Boards and Commissions including the Airport Commission, the Historic Preservation Commission and the Board of Adjustment.

The Legal Department provided the defense of several tax assessment appeals as well as a number of mortgage foreclosures and bankruptcies on property where the City holds a second mortgage or other claim.

The Legal Department processes all claims filed against the City, actively investigating and defending those within the $1000 deductible and referring those in excess of the deductible to Public Entity Risk Services. For fiscal year 2003-2004, 102 claims were processed by the Legal Department.

The Legal Department also:

• Assisted in several Human Rights presentations to the community, involving housing issues

• Assisted the Housing Department with the purchase of homes for the 32 nd Street Stormwater Project

• Assisted the City Clerk with City of Dubuque Code Review Project

-177- • Provided legal service with respect to the Asbury Plaza expansion

• Participated in negotiations with Mediacom regarding franchise renewal

• Contributed to the following major projects: Greyhound Park Hotel Lease ORA/Greyhound Park Lease - Acquisition of Miller properties for Carter Road Detention Basin Bahl Annexation Five Flags Management Agreement

• Represented the City in the following major litigation: Royal Oaks Development Rezoning South Port Rezoning - Apex Rezoning Residency Requirement Litigation

-178- DEPARTMENT/DIVISION: Library RESPONSIBILITY: Susan Henricks, Library Director

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Administration Conducted a community survey regarding current and future library services.

Started Library Department Review.

Identified process and method of long-range planning with approval to move ahead in the current fiscal year.

Updated position descriptions for managers and administrative assistant.

Conducted a severe weather drill, which induded patrons, in the library.

Adult Services Continued to grow the Young Adult Summer Reading Program with 180 registered participants; the largest number to date.

Received 144 entries for the fourth annual young adult bookmark contest; again the largest number to date.

Took 56 teens to the Grand Harbor Water Park for the mid-summer young adult event.

Offered creative writing opportunities to teens in a banned book essay contest in connection with Banned Books Week and a poetry slam during National Poetry Month.

Revamped interlibrary loan service to provide faster response time to our patrons.

Participated in a state pilot project on virtual reference.

Implement a ORA grant to the Foundation for "Express Books" to provide duplicate copies of best selling non-fiction and large print titles.

Built a DVD collection of popular titles which accounted for 18,596 circulations in FY 04 (an increase of 233% over FY 03).

Honored volunteers at a Volunteer Recognition Dinner. Volunteer hours for FY 04 remained over the 5,000 mark and approached 5,500. This is a 4% increase over FY 03, representing almost 200 additional hours.

-179- Over 569 adults participated in programs ranging from book discussions and lectures to a traveling museum on wheels.

The library celebrated the reenactment of the Grand Excursion of 1854 by hosting a lecture on the history of steamboating on the Upper Mississippi, in conjunction with a library art exhibit.

Cooperated with Loras College in hosting a poetry reading by Dubuque native and award­ winning poet, Dennis Schmitz.

Technical Services Completed the installation of Remote Patron Authentication (RPA) enabling Internet scheduling and selective remote access to library resources.

Completed the installation of CybraryN software for Internet scheduling in both the Adult and Children's departments. By logging on through the RPA interface we are able to provide equitable access to patrons in good standing.

Completed a security analysis and audit of the library network.

Installed a Spam filter.

Implemented a Zen Works for improved imaging of workstations.

Switched to NDPS printing.

Set up Net Storage for remote access to personal files for staff.

Migrated to Novell and Groupwise 6.5.

Improved the speed of the acquisitions process by implementing electronic ordering with two vendors.

Tightened security on the PAC terminals.

Set up new staff Intranet with links to Groupwise, NetStorage, weekend schedules, library policies and procedures, and technical support.

Maintenance Completed new landscaping project around the library.

Installed directional and collection signage throughout the library.

Enhanced security as far as access and identification of those who access the building using the security system.

Rearranged adult services collection to better utilize space with the growing audio/visual collection.

-180- Circulation

Increased circulation 1 percent with a record high of 515,532 items.

Number of visitors increased to 266,617.

Increased number of registrations by 26 percent for a total of 31 ,352.

Replaced the diskcheck machine.

Installed the 3M self-check machine, funded in part by the Friends of the Library.

Implemented e-mail notifications for hold items.

Children's Services Two Scholastic book fairs were held to supplement the children's book collection and to procure books to be given away to children completing the 2004 Summer Reading Program. (The two fairs earned over $2000 for these purposes.)

The "Discover New Trails @yourlibrary" Summer Reading Program had 2,108 children register. 45 percent of these participants completed the program after reading for 44 days this summer.

The Activity applied for and was awarded a National Endowment for the Humanities "We the People" Bookshelf grant. The library received approximately $300 worth of juvenile and adult classics.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Complete writing a security plan.

Complete writing a disaster and emergency plan for the library building/collection.

Implement the ORA grant to revitalize, reward, and recruit volunteers to the library.

Add additional security cameras to increase security coVerage.

Complete the Library Department Review.

Develop a new long-range plan.

Complete exterior restoration of original Carnegie building which includes work on the stone steps, tuck point work, window repairs, metal restoration, and building cleaning.

Begin library-wide job audits.

Implement the $6,000 grant received from the Friends of the Library for a graphic novel collection for young adults.

Seek out more opportunities for partnerships to involve teens, especially at-risk teens.

-181- Expand the DVD collection, budget allowing, both vertically by adding current releases as they become available, and horizontally by increasing the number of multi-cultural popular titles.

Provide additional programming for adults, budget allowing.

Seek grants which provide for adult programming.

Present a series of lectures on health and insurance related matters.

Continue reviewing/improving ergonomics for all Circulation workstations.

Implement e-mail notification of overdue items.

Cross train all staff in the Adult Services Activity to work in Circulation.

Plan and implement ongoing improvements in the library LAN and infrastructure, including those presented in the security audit. Improve network speed by continuing the conversion from hubs to switches.

Implement WebFeat which is a consolidated searching software (catalog will search print, non­ print and electronic resources that the library owns or has access to).

Explore and evaluate wireless access in the library to enhance flexibility of public workstation locations and access for patrons using personal laptops.

Implement reservation software for library meeting rooms.

Conduct ongoing inventory of the library holdings and plan for full inventory in 2006.

Begin evaluation of current web design in conjunction with other library staff.

Outreach will be conducted through the local schools to register more children for library cards or computer use cards.

-182- DEPARTMENT/DIVISION: Operations and Maintenance RESPONSIBILITY: Don Vogt, Operations and Maintenance Manager

HIGHLIGHTS OF FY04 AND CALENDAR 2004 ACCOMPLISHMENTS:

Street Maintenance The annual street maintenance rating program was completed in the fall of 2003. The purpose of this rating program is to identify problem areas and to help prioritize the City's street maintenance and reconstruction programs. The information from this inspection will also be used to prepare the street project estimates for next year's projects, as now required by Iowa Code.

The annual curb and gutter replacement program was successfully completed through a partnership of private sector and departmental crews. Curb ramps with the required ADA truncated domes were installed where needed at intersections along the 59 streets that were paved with asphalt in 2004.

As part of our continuous effort to preserve streets with timely maintenance programs, 15,262 pounds of crack sealing material were used to seal 104,654 lineal feet of cracks on 49 different streets.

During calendar year 2004, a total of 16,102 tons of asphalt was used to pave 10.07 miles, on 59 streets, as part of our neighborhood street aSlJhalt paving program. Projects completed in calendar year 2004 are:

Air Hill Street Kehl Ct Arbor Hills Dr - Old Country Lane to Highland Kerry Ct Arbor Oaks Ct. Kilgore Dr Arbor Oaks Dr Langworthy - Hill to James Audubon Street Lisa Ct Belmont Street Mar Jo Hills Rd Caledonia Street Mazzuchelli Dr Cardiff Street Needham Street Cornell Street OakCt Country Cove Oak View Ct Daniels Street Old Country Lane - Spring Valley to Arbor Hills E 24th Street Patricia Ann Dr E 25th Street Providence Street E26th Street Prairie Street E 2yth Street Roberts Street E 28th Street - Central to Pinard Street Rockdale Rd - S. Grandview to 1025 E 29th Street Roosevelt Ext Elm Street - E 22nd Street to E 24th Street Rosemont Farley Street - Garfied- east to railroad tracks Spring Valley Rd

-183- Forest Lane - Delhi to Booth Summit Street Fox Hollow Dr Sumner Street Geraldine Dr - Kelly Lane to 1577 Sylvan Dr th Hamilton Ext. W 4 - Bluff west to the elevator nd th Highland Park - Arbor Hills to W 32 W 8 - Air Hill to Wilson th High Bluff W 11 - Bluff to Grove Terrace Humboldt W 12th - Bluff to Arlington th Inland Dr' W 28 - Burlington to Central Ave Irving Street Westway Dr Johnson Street Windsor - Garfield to E 22nd Kane Ct

Since 1993, 97.5 miles of streets have been paved through our department's program. This equals a third of Dubuque's total street mileage.

As in the past several years, an increased effort has been made to extend the life of Dubuque's concrete streets by means of full depth concrete panel replacements. This year, a total of 595 cubic yards of concrete were used to repair and improve concrete streets. Repairs were made on the following concrete streets in calendar year 2004: Bluff Street Carter Court Carter Road Crestwood Drive Dana Drive E16th Street Hillcrest Road North Grandview Avenue Pasadena Drive University Avenue Ventura Drive Westridge Drive

Street maintenance crews also provided assistance to other departments for the following projects: 1) Finish asphalt excavations for the Engineering Division's Brick Manhole Replacement Project; 2) Finish asphalt excavations for the Engineering Division's Curb and Curb Ramp Programs; 3) Finish asphalt excavations for private contractors replacing driveway curb cuts; 4) Finish concrete and asphalt street excavations and make curb and gutter repairs for the Water Department; and, 5) Pave streets in CDBG neighborhoods in partnership with the Community and Economic Development Department.

In 2004, the Street/Sewer Maintenance Supervisor represented the City as the American Public Works Association's (APWA) Iowa Chapter Past President. In August of 2004, he received the Iowa Chapter American Public Works Association's "Public Works Leader of the Year" award. This award was given to recognize his contribution to the Iowa Chapter while serving as chapter President during 2003. The Street and Sewer Maintenance Supervisor will continue to serve the Board of the Iowa Chapter of the American Public Works Association in 2005 as a committee member assigned to special projects. Also in Fiscal Year 2004, the Street/Sewer Maintenance Supervisor represented the department in planning for and providing on-site supervision in the Port of Dubuque during the Grand Excursion event held during June of 2004.

-184- Sanitary and Storm Sewer Maintenance The Operations and Maintenance Department continued its sanitary sewer comprehensive maintenance program. Sewers in the Rockdale Rd, Southern Ave, Cleveland Street, Rush Street and Mt Loretta Street areas were systematically cleaned and inspected. Departmental efforts to inspect, with closed circuit television equipment, all sanitary and storm sewers underlying streets in the City Engineer's FY04 street reconstruction and maintenance program were successful. The annual spring and fall inspections of the Catfish Creek sanitary sewer line and other remote lines were also completed.

The department also continued its systematic cleaning and inspection of Dubuque's storm sewer system, including the Bee Branch storm sewer and other major storm water ditches throughout the city. An increased effort to clean and inspect storm sewer water intakes and identify potential construction defects that could cause flooding during major rain events continued.

Street Cleaning Additional sweepers were deployed and extended work hours were implemented during the spring and fall seasons, to improve the effectiveness of our street sweeping program. From the 11,264 curb miles swept in fiscal year 2004, sweepers picked up 757 truckloads (1,693 tons) of material.

Snow and Ice Control The winter of 2003/04 proved to be Dubuque's third consecutive mild winter, but still witnessed 18 storm events and 29.5 inches of snow. As development continues to add to the miles of streets maintained by the city, changes have been made to the route system to assure consistent and comprehensive coverage during and after winter storm events.

Street and Traffic Lighting In Fiscal Year 2004, our traffic signal technicians responded to street and traffic signal knockdowns, and, responded to all underground City electrical utility location requests in a timely manner. The technicians also continued to provide technical assistance to the Fire Department with its traffic signal "preemption" project and to the Iowa DOT for the Highway 20/Dodge Street traffic controller synchronization project.

Street Signs and Markings In Fiscal Year 2004, employees assigned to the street signs and marking activity, along with several employees assigned to other department activities, installed the new "way finding" signs located throughout the city. A total of 92 signs were installed.to guide tourists to local attractions.

Riverfront and Floodwall Our efforts to control weeds/brush along the 6.4 mile long floodwall continued, with our crews cutting brush and saplings where needed and a private contractor spraying herbicides along the entire floodwall. An inspection of the floodwall system by the U.S. Army Corps of Engineers was completed in November of 2004. The Corps found no major problems with the maintenance of the levee system.

During the winter of 2002/03, the pumps that are located at the Ice Harbor pumping facility were removed and replaced with larger pumps. That project involved replacing two 25 HP, 3,100 gpm pumps, that were installed during the original flood control project, with two 75 HP, 8,000 gpm pumps. During the winter of 2003/04, the auxiliary

-185- power generator project was completed at this site to assure full operation of the pumps during times of power outages.

In the spring of 2004, the river crested at 18.6 feet. This crest made it necessary to close and operate the pumping facilities located at Hawthorne Street, the Bee Branch basin, Maus Lake,' and the Ice Harbor. It was also necessary to set up and operate the portable pumps located at E4th Street and Commercial Street. All operations were according to the U.S. Army Corps of Engineers Floodwall Operating Manual.

During the summer of 2003, the Riverwalk was completed and the department initiated its maintenance program for the Riverwalk, Rivers Edge Plaza, Hotel Walkway, and Ice Harbor Park. During the summer of 2004, the Port of Dubuque hosted its first major event, the Grand Excursion. The department played an active role in the cleanup of the Port of Dubuque and the Riverwalk areas throughout the two day event.

Vehicle Maintenance Garage Maintenance and repair of the City's fleet of vehicles, heavy equipment and assorted machinery was accomplished without significant "down time", in spite of the ever increasing complexity of many of the vehicles' components and the loss of a mechanic to the Iraq War for all of FY04.

Hired a new Vehicle Maintenance Supervisor and two new mechanics to replace workers who retired or quit.

With the Transit Division fleet conversion completed, staffing reduced to design level of one mechanic, one service worker, and one part-time service worker.

Completed design of the New Municipal Services Center in March of 2004. Solicited and open construction bids in May of 2004. Awarded construction contract in June of 2004.

DMASWA Landfill, Yard Waste Processing And HHMRCC Activities • Approval by IDNR of new Development and Operations Plan; • Successful grant application to IDNR for HHMRCC disposal assistance funds; • Completion of annual overflight/survey program to verify cell capacity/life, waste compaction rates, cover dirt usage, and, facility life; • New compost sale policy and price structure; • New appliance and tire recycling contracts; • Successful outsourcing of yard waste processing work formerly done by New Melleray Abbey; • New education partnership agreement with Loras College; • Successful recruitments of Agency Administrator and Educator; • Initiation of West 32nd Street stormwater management construction and demolition materials (C & D) diversion demonstration project; • Completion of America's River Museum C and D diversion project; • Successfully obtained IDNR permit for C & D site at the Dubuque Metro Landfill; • Renewed partnership with Dubuque County ISU Extension Service and sponsorship of two "Marsville" events for local sixth graders; • Completed the Cells #7 and #8 construction project; • Membership of the Department Manager on the Board of Directors of the state chapter of the Solid Waste Association of North America; • Renewed retention of an expert, outside firm to assist the Agency with the diversion and reuse of regionally-generated construction and demolition materials;

-186- • Assistance provided numerous communities in Dubuque and Delaware counties with their State-mandated startup of their unit-based pricing refuse collection systems; • Disbursal of waste minimization grants to: the cities of New Vienna, Luxemburg, Holy Cross, Earlville, Epworth, Cascade, Dubuque and Worthington; the Dubuque County ISU Extension Service; and, Delaware County. • HHMRCC services provided 591 households and 63 small businesses and institutions; • The diversion and proper disposal of 31.47 tons of hazardous materials; • Receipt, processing and subsequenfdistribution for reuse of over 500 gallons of paint; • The processing and composting of 1,890tons of yard waste; and, • The proper disposal/burial of 87,210 tons of municipal solid waste.

Solid Waste Management Activities • Refuse collection tonnage decreased by 1% from FY03; • Recycling collection tonnage increased by 3% from FY03; • Yard waste collection tonnage decreased by 5% from FY03; • Large Item collection appointments increased by 37% from FY03; • Overall diversion / recycling rate increased to 39%; • Provided waste management assistance for the Grand Excursion. The recycling component won the 2004 Recycling Project of the Year Award from the Iowa Recycling Association; • Beta tested and implemented full scale Incident Tracking, recording an average of 700 crew tags and other incidents per month; • Distributed 3,700 complimentary Extra Garbage "Holiday Tags" over the 2003 winter holidays; • Distributed 1,650 yellow recycling bins to improve diversion through recycling; • Expanded subscriptions to Tipper Carts for refuse collection - improving setout sanitation, appearance and cost saving at many multiplex locations; . • Expanded our preventative maintenance and pre-trip truck inspection program; • Implemented a 6 A.M. start time for recycling collection; • Coordinated the Mormon Youth Service Project, recording solid waste stockpiles, illegal dumping locations and Right Of Way nuisance violations for baseline identification and staff follow-up; • Assisted in planning for recycling / refuse management and equipment purchases for the Grand River Center; • Hosted a regional Event Recycling Training Workshop at the Mississippi River Museum; • Completed an IDNR grant program assisting five Iowa communities planning to implement PAYT; • Presented a workshop on Dubuque's 1st Year In Pay As You Throw (PAYT) at the joint IRA and ISOSWO 2003 Fall Conference; • Assisted IDNR in developing an Illegal Dumping Resource Guide and training public officials. Received State of Iowa recognition for a successful illegal dumping prevention program; • Provided additional educational presentations, tours and promotion during the vacancy of the DMASWA Solid Waste Educator; • Provided technical assistance in developing beneficial diversion options for recyclables from businesses, construction / demolition materials, electronic scrap, and compostables prior to the hiring of the DMASWA Administrator; and, • Supervisor completed service on the Iowa Recycling Association Board of Directors.

-187- FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Street Maintenance Upcoming initiatives for the activity dedicated to maintaining and improving Dubuque's street system include: 1) An aggressive asphalt paving program for neighborhood streets; 2) Installation of more curb ramps at intersections; 3) Expanded efforts to rehabilitate concrete streets through full-depth panel replacements; and, 4) Continue our, efforts to preserve streets with timely maintenance programs.

Sanitary and Storm Sewer Maintenance The department will continue with a comprehensive maintenance program for the entire sanitary sewer system. The department will also assist the Public Works Department in the implementation of best management practices for DUbuque's storm sewer system that will meet the requirements of the City's federal Phase II Stormwater Permit.

Riverfront/Ice Harbor Maintenance and Floodwall Operations Departmental efforts will continue to focus on enhancing the riverfront's appearance and accessibility, while working to improve the floodwall's ability to protect the city from flood events. The department will provide appropriate attention to concrete and landscaped areas located along the River Edge Plaza, Riverwalk, Hotel Walkway, and Amphitheater/Brewery.

During FY2005, the department will initiate and complete the Hawthorne Street and Maus Lake Auxiliary Power Projects along with the Bee Branch Auxiliary Power, Pump Control and Sidewalk projects.

Street Cleaning We will continue to use extended work hours and additional personnel to operate all cleaning/sweeping equipment during heavy workload periods (post-storm and autumn leaf fall). We will also implement the Best Management Practices listed in the City of DUbuque's federal Phase II storm water permit.

Snow and Ice Control We will annually update our winter road maintenance cooperative agreement with Dubuque County to address jointly-owned roadways. Also, the department will continue to research and evaluate new methodologies, materials, and equipment that may help improve our snow and ice control program. Recent new methodologies, which were evaluated and subsequently adopted, include the use of anti-icers such as salt brine and the use of low or non-corrosive deicers on new concrete streets and bridges.

Traffic Signal and Street Light Maintenance We will continue to install battery packs at signalized intersections which have been identified as benefiting most from being equipped with standby power. The power from the battery packs helps ensure safe driving conditions at heavily used intersections during power outages.

Signs and Markings During Fiscal Year 2005, our sign crew will complete the installation of 10 additional "way finding" signs in the city. This will complete the "way finding" signage project which began in the fall of 2003.

-188- Vehicle Maintenance Activity • Completion of the Municipal Services Center construction project. • Service continuity while moving staff and equipment from current shop facility to new shop in the Municipal Services Center in the summer of 2005. • Conversion of the equipment management information system to a more network-and user-friendly, Windows-based software system. • Conversion from a manual "job card" system to data entry by the mechanics. • Increased level of training for mechanics in area of electronics. • More mechanics working early and late shifts to balance workloads and extend regular hours of service.

DMASWA Landfill Operations • Continue to pursue acquisition of "buffer" and dirt borrow properties; • Open additional recyclables drop-off sites; • Develop and implement an ewaste recycling program; • Conduct a program to assist customer-communities increase refuse collection program efficiencies; • Construct addition to scale house to accommodate records, scale hardware and software; • Design and place cap on cells #3 and #4; • Develop a separate drop-off facility for cars and small trucks to reduce congestion at cell face; • Continue partnership with Dubuque County ISU Extension office, for assistancewith public education; • Continue to assist Agency with the administration of its waste minimization grant program; • Purchase and install new equipment fueling system; • Negotiate new contracts with larger customers; • Submit bid to host 2006 ISOSWO/IRA state conference; • Continue Cand D diversion partnerships with the City of Dubuque, the Dubuque Community School District, HyVee Corporation, and other interested parties; • Aggressively "market" Agency services to promote generator loyalty; • Apply to IDNR for a permit for a new generation of cells, in order to add 30 years to the landfill's life; • Initiate and complete a methane collection and remediation study; • Conduct a new study of current operations and finances; • Facilitate planning sessions for the Agency's Board of Directors to address needed strategic decisions; • Continue annual overflight and survey program to monitor dirt usage and cell life; • Formulate and submit new Closure/Post-closure Plan to IDNR; • Complete "master plan" for diversion and reuse of regional construction and demolition materials; and, • Renew IDNR operating permit.

DMASWA Household Hazardous Materials Regional Collection Center • Increase number and coverage of mobile HHM clean-up events; • Continue to offer services to adjoining counties, as per IDNR grant guidelines; • Continue successful "latex paint" give away program;

-189- • Continue "swap shop" program; • Submit grant applications to IDNR for education and disposal funds; and, • Renew IDNR operating permit.

Solid Waste Management Activities

• Maintain affordable monthly solid waste collection fees and options relative to Iowa's ten largest cities; • Work with the Finance Department and other City utilities to develop new procedures to improve collection of delinquent utility fees; • Implement a fee-based enforcement program to direct refuse crews to collect stockpiled refuse remaining at refuse setout points from the previous week; • Continue joint monthly meetings to assist Housing and Community Development and Health Services staff enforce City Code, clean up unsuitable garbage storage sites and resolve other systemic refuse problems; • Develop a PAYT and recycling promotion campaign targeted at tenants in rental housing; • Translate solid waste and recycling educational flyers into Spanish; • Develop an interdepartmental illegal dumping prevention, education, enforcement and cleanup campaign; • Expand customer service, safety, accident prevention, and defensive driving crew training; • Continue the labor/management Solid Waste Operations Review Team monthly meetings to refine current collection programs; • Finish the Crew Operating Procedures Manual with detailed routing maps, customer units in multiplexes, and list of active decalsubscription holders; • Prioritize moving collection from problem alleys to curbside setouts; • Revise and update City Code Chapter 40 (Solid Waste); • Support a grassroots environmental partnership in the process of establishing a Keep Dubuque Beautiful organization to help reduce litter and other solid waste problems; • Help extend a Waste Minimization Partnership with the Dubuque Community Schools to include a "Litter-Free Schools Campaign"; • Serve on the E-Community: Dubuque Advisory Committee to promote and implement waste reduction programs in Dubuque; • Participate in a DMASWA solid waste collection study, including exploring the advantages and disadvantages of using split compartment "Tipper Carts" to collect recyclables on an every other week basis; • Participate in national and regional benchmarking projects on solid waste collection efficiencies; and, • Provide onsite composting technical assistance to customers, neighborhood groups, and religious organizations.

-190- DEPARTMENT/DIVISION: Economic Development Parking Division RESPONSIBILITY: Tim Horsfield Parking System Supervisor

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

• Brought Airport on line with enforcement software • Improved landscaping in surface parking lots • Implemented structural study of Locust and Iowa Parking Ramps • Increased collection efforts related to past-due parking fines

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

• Continue to strive for a high level of user satisfaction along with fair and equitable enforcement of city parking codes • Work with Dubuque Main Street Ltd. and city staff to improve downtown parking utilization and availability • Continue to improve the appearance of the municipal lots • Complete structural analysis of Locust and Iowa Street Ramps • Assess policies and procedures within the Parking Division to assure maximum potential is obtained • Continue to improve appearance of municipal parking ramps through a preventive maintenance program • Assess needs of expanding business in the downtown area and evaluate current ramp and lot usage to accommodate growth • Conduct usage audit of all ramps • Increase usage of automatic debit pay for all users

-191- DEPARTMENT/DIVISION: Leisure Services/Park RESPONSIBILITY: Gil Spence, Leisure Services Manager John Hail, Park Division Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

As a means to provide service in the most efficient manner and to help Dubuque's citizens gain a greater knowledge and appreciation of what is involved in providing our park system, volunteers are utilized whenever possible.

Volunteers assist the Park Division in the following areas:

• Two retired City employees continue to help with transplanting of flowers at the greenhouse in February, March, April, and May, in excess of 720 hours. • Boy Scouts of America, Order of the Arrow, assisted in spring park clean up at Eagle Point and Murphy parks - 125 hours of service. • Dubuque Senior High School Honor Society had one hundred ten students spend one day at Eagle Point Park in a spring clean up. They.stained picnic tables, drained and cleaned the fishpond area, raked the safety surface around playground areas, and painted rest rooms. • Marshall School, as part of a School Business Partnership Day, planted the flowerbeds at the Eagle Point Park overlook. Each student planted flowers. • Community service people are assisting in staining tables, cleaning fireplaces and trimming, pulling weeds at Miller-Riverview Park - approximately 500 hours of service. • Cub Scout Pack 68 from Sageville School held a spring clean up along Heritage Trail, from 22nd to 32nd Street. • Casey Arensdorf made a bleacher pad for the inline skate rink at Allison-Henderson Park for his Eagle Scout project. • Dubuque Fly Fishing Club, Iowa Department of Natural Resources and the Leisure Services Department placed sixty fish habitat cribs at Bergfeld Recreation Area. Donations were received from Top Block and Brick and McGraw-HilI. • Loras College, Launch the Loras Program, mulched the shrubs and trees on Highway 20 between Grandview and Fremont Avenues. • Dubuque Senior High School had 130 football and volleyball players and coaches weed and prune roses on Highway 20; pick up litter on South Locust Street from Southern Avenue to the Locust connector; and on Highway 20 from the bridge area to Devon Drive. • Clarke College, Take to the Streets Program, had forty students prune roses and weed flowerbeds on Highway 20. • Emmaus Bible College had sixty students assist with maintenance along Highway 20, weeding and pruning shrubs and roses, and general fall clean up.

Parkland Adoption Projects:

• Juvenile Court Services picks up litter and rakes Washington Park on a weekly basis.

-192- • Greater Dubuque Boys' and Girls' Club adopted the 16th Street nature overlook and parking islands. This past year they maintained flowerbeds on the islands along with mowing and cleaning litter on a weekly basis.

Educational programs co-sponsored by the Park Division include: • Bald Eagle Watch held in January at Dubuque Lock and Dam and Grand River Center. • Mississippi River Eco-Meet, co-sponsored with the Army Corps of Engineers, is held at Eagle Point Park. This program has fourth and fifth grade students attend outdoor classes and test for awards. Twenty-two schools from Iowa, Wisconsin, and Illinois participated last year. • Arbor Day is held in April each year at the Dubuque Arboretum and Botanical Gardens. • Bike Rodeo at Flora Park is co-sponsored with Finley Hospital and Dubuque Police Department.

Major Events in the Parks: Eagle Point Park • Tri-State Wind Symphony concerts in the park (eight concerts on Thursday evenings during June and JUly) • Chain Reaction Bike Races

Murphy Park • Hillcrest Festival of Lights

Miller-Riverview Park • Dragon Boat Races

Washington Park • Dubuque Fest • Riverfest • Dubuque Arts & Crafts Show

Capital Improvement Program major accomplishments include:

• Bryant School - playground • Table Mound School - playground • Heron Pond - fishing pier • Eagle Point Park - play unit • Allison-Henderson Park -sidewalk and drainage project • Marshall Park - entrance road and s~nitary sewer • Avon Park - lighting • Slattery Center - rest room renovation

Major Capital Improvement Projects in progress or planned for Fiscal Year 2005 include

• Park Maintenance Headquarters - roof replacement • Comiskey Park - landscaping • Gateway landscaping • Miller-Riverview Park - rip rap shoreline • Comiskey Park - basketball and tennis lighting • Valentine Park - rest rooms

-193- FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

• Initiate and complete capital improvement projects that remain in the C.I.P. budget. • Continue to work with the Dubuque Community School District to develop school playgrounds in areas of the city where park areas are lacking. • Continue the playground inspection program. • Work to expand the Parkland Adoption Program to ease the maintenance effort of staff. • Continue to recruit groups and organizations to volunteer for one-day service projects that greatly help get parks ready for the park season and reduce the maintenance effort of our staff. • Work with the Northend Neighborhood Association on future development projects for Comiskey Park. • Implement and monitor the maintenance plan for the Port of Dubuque. • Water Works Park development • Pyatigorsk Park development • Riley Park development • Renovation of park water systems

NEW PROJECTS FOR FISCAL YEAR 2010:

• Eagle Point Park - accessible walkway to the Log Cabin Pavilion • Cleveland Park - renovation • Veterans' Memorial Park - tennis courts/skate park • Washington Park - renovation • Veterans' Memorial Park - renovate ball fields • Fulton School - play unit • Prescott School - baskets and scoreboard • Washington Middle School - replace four baskets

-194- DEPARTMENT/DIVISION: Planning Services RESPONSIBILITY: Laura Carstens

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Development Services Activity

Zoning Advisory Commission Planning Services staff continued to support the Zoning Advisory Commission at their monthly meetings during FY2004. The Zoning Advisory Commission provided recommendations to the City Council on 29 rezonings, 24 minor and major subdivision plats, and 5 text amendments to the Zoning and Subdivision Ordinances.

Zoning Board of Adjustment Planning Services staff continued to support the Zoning Board of Adjustment (ZBA) at their monthly meetings during FY 2004. The ZBA considered 31 variances, 17 conditional uses, 2 appeals and 59 special exceptions.

Development Review Planning Services staff continued to coordinate biweekly meetings of the Development Review Committee with the Fire, Water, Engineering and Building Services Departments. In addition to 24 subdivision plats, the Committee reviewed 47 minor and major site plans for new multi-family residential, commercial, office, institutional, and industrial developments.

In addition, Planning Services staff reviewed 29 limited setback waivers, 135 permanent sign permits, 49 simple subdivisions and 1 flood plain permit. Staff assisted private developers, business owners, realtors and citizens with inquiries about residential, office, commercial and industrial projects and expansions.

Planning Services staff continued to distribute a customer service survey to all Commission, Board, and Development Review applicants, and to provide an annual report on the survey results to the City Manager.

Staff continued to use the Permit Tracking software in conjunction with the Building Services Department.

Zoning Enforcement The Zoning Enforcement Officer assisted with proactive and complaint-based enforcement of the Zoning Ordinance. Activities include inspections, interdepartmental coordinated code enforcement, court testimony for zoning and other code compliance, interaction with citizens and neighborhood organizations, and maintenance of an enforcement database. The Zoning Enforcement Officer responded to 485 complaints, sent out 375 violation notices and closed 400 cases. The Zoning Enforcement Officer continued to coordinate resources for neighborhood clean-up efforts and used the City's towing contractor to remove inoperable and abandoned vehicles.

-195- Other Planning Services staff spent time coordinating code enforcement with property owners, neighbors and other City departments on unique zoning violations and neighborhood disputes.

Geographic Information System (GIS) Planning Services staff participated with the County Assessor's Office to coordinate City zoning on the County web site. Staff produced approximately 200 maps and related analyses in FY 2004.

Historic Preservation Activity

Historic Preservation Commission Planning Services staff continued to support the Historic Preservation Commission (HPC) at their monthly meetings during FY2004. Staff also assisted homeowners, landlords and business people with HPC design reviews. The HPC conducted 42 design reviews and reviewed 3 Historic Preservation Homeowner Grant applications.. The HPC considered 7 demolition permit requests. Staff also coordinated 2 community outreach and education programs.

The HPC sponsored activities for National Historic Preservation Week. Staff and HPC members attended several historic preservation workshops and training sessions.

Planning Services staff continued to distribute a customer service survey to all Commission applicants, and to provide an annual report on the survey results to the City Manager.

Preserve America The City of Dubuque was the first "Preserve America" community to be designated in Iowa. The City is nationally recognized as a community that protects and celebrates its heritage, uses its historic assets for economic development and community revitalization, and encourages people to experience and appreciate local historic resources through education and heritage tourism programs.

Iowa Preservation Alliance Award The City of Dubuque had three properties in its jurisdiction that won Iowa Historic Preservation of its best Awards (IHPA). The Chicago, Burlington and Northern Railroad Depot won the small commercial category. The property at 2015 Washington Street won the residential award, and the Grand Opera House received an honorable mention award in the large commercial category.

Architectural/Historical Survey/Evaluation

Planning Services staff closed out the consultant contract and the State grant for Phase III & IV of the Architectural/Historical Survey/Evaluation. Staff managed the State grant, Historic Preservation Interns, and consultant contract for Phase V of the Architectural/Historical Survey/Evaluation.

National Register Listings Planning Services staff facilitated Historic Preservation Commission and City Council review of buildings listed in the National Register of Historic Places in 2004. In addition, the W. 11 th Street and Langworthy Historic Preservation Districts and the City of Dubuque Multiple Properties Document were listed in the National Register in 2004.

-196- Shot Tower Planning Services staff received a $100,000 Historic Sites Preservation Grant from the State Historic Preservation Office to rehabilitate the Shot Tower.

Historic District Public Improvement Program Initial applications were approved and initiated in FY04.

City Planning Activity

Long Range Planning Advisory Commission Planning Services staff continued to support the Long Range Planning Advisory Commission at their meetings.

Downtown Planning Committee The Planning Services staff provided support for the Downtown Planning Committee at their meetings for the creation of a comprehensive Downtown Master Plan, which the City Council adopted in 2004.

Joint City/County Planning Committee The Planning Services staff provided support for the Joint City/County Planning Committee for the creation of a fringe area policy agreement, which the City Council adopted in 2004.

Dubuque Metropolitan Area Transportation Study The Planning Services Manager continued to participate on the Dubuque Metropolitan Area Transportation Study (DMATS) Technical Advisory Committee. The Planning Services Manager attended meetings for the Mississippi River Crossing Study, the Southwest Arterial Environmental Studies, and the Highway 20 Capacity Improvement Studies.

Annexation Analysis Staff analyzed annexation requests and prepared an annexation plan for 704.5 acres, which was approved by the City Council. Staff provided information and coordinated meetings with property owners interested in annexation. Planning Services Manager prepared an RFP for an Annexation StUdy Update, coordinated review of proposals, and handled contract negotiations with the selected consultant. Planning Services Manager coordinated data collection for consultant.

Heritage Trail Master Plan: Implementation The Planning Services Department continued to implement the Heritage Trail Master Plan through coordination of several trail projects funded with State and Federal grants.

Beginning in 2004, Engineering and Planning Services staff worked with a com~ultant and the lOOT on the Heritage Trail Extension, a combination of off-road and on-street trail routes along the riverfront and through downtown from 22nd Street to the Mines of Spain State Recreation Area. The project was completed in 2004. '

Engineering and Planning Services staff worked with a consultant and lOOT on a trail extension to connect the Heron Pond Wetlands Nature Trail with the DUbuque Jaycees Trail at 16th Street and Kerper Blvd.

-197- Planning Services staff applied for State and Federal grants for Water Works Park and Pyatigorsk Park.

Port of Dubuque Design Review Committee Planning Services staff coordinated meetings and staff support for the Port of Dubuque Design Review Committee to implement the Port of Dubuque Master Plan and Design Standards. In connection with the America's River project, the Planning Services Manager serves as the facilitator for the Port of Dubuque In-House Work Group.

Wayfinding Signs Planning Services staff facilitated coordination with selected consultant for installation of the highway and tourist district wayfinding signs in 2003 and 2004.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Planning Services staff will continue to support the City Council, Zoning Advisory Commission, Zoning Board of Adjustment, Long Range Planning Advisory Commission, Historic Preservation Commission, Port of Dubuque Design Review Committee and Development Review Committee . at their meetings.

Planning Services staff will continue to participate on the DMATS Technical Advisory Committee, Port of Dubuque In-House Work Group, Historic Preservation Homeowner Grant Review Committee, and Safety and Health Committee.

Staff will continue to coordinate development review and code enforcement with other departments, research text amendments to improve the Zoning and Subdivision Ordinances, and help implement recommendations for one-stop development, permit consolidation, and permit tracking. Planning Services staff will attend regional and statewide trail meetings as well.

Staff will continue proactive and complaint-based enforcement, coordinated enforcement with other City departments and implementation of the Zoning Enforcement Program developed by staff. Staff will continue to look for ways to strengthen zoning regulations and code compliance.

Staff will continue to analyze voluntary annexation requests that are received, and to coordinate an update of the 1996-1997 Annexation Study. Planning Services staff will continue to work to complete the Voluntary Annexation Plan for 700 acres west of Dubuque that includes non­ consenting property owners.

Planning Services staff will continue to work to obtain permission to hire an additional full-time Associate Planner for historic preservation and City planning activities (pending City Council consideration; impacts ability to accomplish the rest of this list).

Planning Services staff will continue to assist the City Manager's Office with implementation of the Downtown Master Plan.

Staff will continue to seek additional grants for trails, historic preservation, Shot Tower restoration, riverfront development and related projects. Staff will continue to assist other departments and non-profit agencies with grant applications as needed. Planning Services staff will attend regional and statewide trail meetings as well.

-198- Planning Services staff will continue to implement programs and incentives for historic preservation, including Historic Preservation Homeowner Grants, Historic Preservation Revolving Loan Fund, and Historic District Public Improvement Program.

Planning Services staff will continue to work to complete Phase V of the Historic/Architectural Survey/Evaluation, and to initiate Phase VI of the Historic/Architectural Survey/Evaluation if funded.

Planning Services staff will continue to work toward completion of closeout of the $737,376 grant for the Great River Road Interpretive Center at the National Mississippi River Museum & Aquarium.

Planning Services staff will work with City Engineering and Leisure Services staff on closeout of the $233,000 grant for Heritage Trail Extension via 16th Street Bridge.

Planning Services staff will coordinate with staff, citizen advisory committee, and a consultant to update the Zoning and Subdivision Ordinances.

-199- DEPARTMENT/DIVISION: Police Department RESPONSIBILITY: Kim B. Wadding, Police Chief

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

The City of Dubuque continues to be a safe community. Violent crime for the City of Dubuque decreased by 20%, from 110 reported incidences to 88. Violent crimes include murder, forcible rape, robbery, and aggravated assault. The 2003 Uniform Crime Report (UCR) reports a national violent crime rate of 475 per 100,000 residents; this marked a 3.9% decrease from the previous year. Additionally, the State of Iowa also showed a decrease of 5% in violent crime to a crime rate of 272.4 per 100,000 residents, down from 285.6 in 2002.

Major Cases On Monday, May 10, 2004 Dubuque Police Officers began an investigation into the suspicious death of a 32-year-old female at a residence in Dubuque. Originally, the investigation began as a suspected suicide but later was determined to be a homicide. After an extensive investigation, the victim's 34-year-Old husband was arrested for murder in the first degree. Within a short period of time after posting bond and release from jail, the 34-year old husband was found dead inside the garage where the female victim was originally discovered. The death was ruled a suicide.

During FY2004 the police department investigated eight robberies. Of the eight, six were robberies of a person, one bank robbery and the last to a business. Of the six person robberies, three were cleared by arrest; one was determined to be a false report, with two remaining active. The bank robbery was cleared by arrest with the business robbery remaining active.

Drug Task Force During FY04, the Dubuque County Drug Task Force filed 88 narcotic violations involving 66 persons, 51 Drug Endangered Children investigations involving 110 children, and participated in 11 Federal indictments. Illegal drugs seized include 87.84 grams of crack cocaine, 36.4 grams of powder cocaine, 229.76 grams methamphetamine and 1,564.92 grams of marijuana. The Drug Task Force responded to 14 active methamphetamine drug labs and 8 methamphetamine dumpsites. Additionally, the Drug Task Force conducted numerous (29) educational talks to community and business members regarding the illegal drug trade and the signs of possible methamphetamine manufacturing.

Accreditation The Dubuque Police Department is an accredited law enforcement agency. On July 31,2004 the department received its third re-accreditation from the Commission on Accreditation for Law Enforcement Agencies. Accreditation is a voluntary program and represents the department's ongoing commitment to continue the quest for professional excellence by meeting and exceeding the mandatory standards for professional law enforcement

-200- Community Oriented Policing Community oriented policing has become a mainstay to police operations. By having Community Policing Officers available to patrol services, their efforts enhance patrol and investigation operations to address ongoing concerns creating consistent methods of communication for effective and efficient police response. Currently, the department has three officers dedicated to CommunityPolicing meeting regularly with neighborhood groups.

The Community Policing Officers coordinate the city's internal working group consisting of other departments to comprehensively address citizen and neighborhood concerns. Issues addressed by the internal working group have included vicious dogs, trash and garbage, nuisance violations, festival planning and others, all focused toward maintaining and improving the quality of life for the citizens of Dubuque.

Community Action Academy As part of a community-wide effort to strengthen and celebrate diversity through the creation and development of new welcoming capabilities, a new grassroots organization, Dubuque's Everyone's Neighborhood, was initiated in January 2001. Dubuque's Everyone's Neighborhood brings together a community coalition of business, industry, city, school, and civic groups to develop and nurture ways to enhance the quality of life in the community.

As part of the initiative, a Community-wide Community Action Academy was created to provide a weekly program for newcomers to learn first-hand what the community has to offer and highlights the community's rich heritage. From its inception, the Community Action Academy has held four sessions with the last graduating November 4, 2004. Over 75 persons have graduated from the Community Action Academy. In 2004 the Community Action Academy began a new affiliation with the Dubuque Chamber of Commerce. Although still coordinated by Community Action Academy volunteers, the Dubuque Chamber of Commerce lends financial support to ensure the academy's continuation.

Citizen Police Academy The sixth session of the Citizen Police Academy was held February 3, 2004 through April 27, 2004, with 20 participants. The Citizen Police Academy has now graduated 220 community members from the program. The seventh Academy class is currently being planned for 2005. Through the class sessions, participants interact with various officers and experience how a police officer is trained and performs their function. Many graduates have continued their involvement with the department by joining the Dubuque Police Auxiliary.

School Resource Officers Through the U.S. Department of Justice COPS program, the department in partnership with the Dubuque Community Schools, funds two School Resource Officers to work daily with the Dubuque Community School District. With the addition of these two officers, the department has three full-time officers dedicated to K-12 education in the school district. The addition of these officers continues to strengthen our school presence creating a safer and more secure learning environment for our youth.

Traffic Safety Our efforts to provide an effective traffic safety programming were enhanced through the Governor's Traffic Safety Bureau providing overtime funds to fund traffic safety initiatives and focus. This effort expands our traffic safety attention on prevention, intervention and enforcement activities. Additionally, we continue to partner with other health care providers to establish a monthly child safety seat inspection station to educate and provide correct child

-201- safety seats to motorists. Currently, our efforts have helped to achieve an 89.5% seat belt compliance rate.

Additionally, our traffic safety effort is enhanced through the use of a Speed Monitor Trailer. The Speed Monitor increases traffic safety visibility and heightens motorist awareness. With the ability to record speed data related to time of day, vehicles per hour, and average speeds, the Speed Monitor has proven to be an excellent statistical resource in providing educational and selective enforcement initiatives.

Mental Health Initiative The police department has partnered with a number of helping agencies to focus attention and action toward the development of a jail diversion program to assist those suffering from mental illness. Core members include: The Dubuque Sheriff's Office, Iowa Department of Corrections, Dubuque County Mental Health Association, Gannon Center, Substance Abuse Services Center, Mercy Hospital, Dubuque Public Defender's Office, Dubuque County Court Services, Dubuque County, Dubuque County Board of Supervisors, and Loras College. As a result, a Substance Abuse and Mental Health Services Administration grant was awarded to DUbuque County totaling $899,889 (with $299,963 awarded each year).

The grant, only one of ten awarded in the country, provides for the development of a jail diversion program in the county and city. The program provides alternatives to incarceration for persons with substance abuse and mental health disorders. The program is specialized and will implement trained mental health intervention teams to remove non-violent mentally ill persons from the criminal justice system and direct them to a community setting for treatment

Canine Through the efforts of the Dubuque County Drug Task Force Control Group and the City of Dubuque, our canine unit comprised of one officer and "Iwan", continues to be a valuable tool for the detection and apprehension of criminal suspects. Trained in tracking, narcotic detection and building searches, the canine unit provides a vital resource to locate lost or missing persons, combat illegal drug trafficking and provide additional safety measures for street officers

Homeland Security As we continue to promote homeland security safeguards, a River's Edge Plaza Security Plan was completed and approved by the United States Coast Guard. The plan outlines safety measures regarding the use of the River's Edge Plaza and how visiting vessels report their arrivals and security measures.

18-County Drug Task Force During FY2004 the formation of an 18-County Methamphetamine Clandestine Laboratory Drug Task Force (Eastern Iowa Clan Lab Task Force) became operational. The task force was made possible through a federal grant from the Community Oriented Policing (COPS) office. The lead agency for task force operations is the Iowa Division of Narcotics Enforcement Membership by local jurisdictions includes six full-time and eight part-time officer positions. The grant funds salary, benefits and vehicle costs for full-time officers for an initial two years. The City of Dubuque has one officer dedicated to this initiative. With the increasing hazards and dangers associated with the discovery and dismantling of illegal methamphetamine "laboratories" I the creation of a multi-jurisdictional task force enhances our ability to effectively and efficiently address this growing concern.

-202- Presidential Elections During the 2004 election year, the City of Dubuque hosted six presidential visits by the presidential candidates. Of the six, two visits were President George W. Bush, one visit by Vice-President Dick Cheney, two visits by Senator John Kerry, and one visit by John Edwards. Along with having to provide traffic control and inside and outside perimeter security, the planning for these events occurred over a very limited notification time. The presidential visits required over 80 law enforcement posts staffed by the police department along with members from. the Dubuque County Sheriff's Office and the Iowa Patrol.

Patrol Area Remodeling With the completion of the new jail addition and the relocation of the Records and Investigative Units to the new building, the remodeling of the old investigative area was initiated. Through the remodeling, a new patrol line up area, new patrol officer work areas, and new offices were created for the patrol Captains and Lieutenants. The remodeling has allowed all patrol area supplies and equipment to be consolidated and streamlined into one area. Additionally, the remodeling created a secure entrance for patrol officers to enter and exit the building without interfering with the public entrances.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

The department continues to conduct periodic compliance checks of licensed establishments selling tobacco and alcohol. This is a combined effort involving agencies on the state and local level.

With the events of September 11, 2001, the department remains committed to the innovation and assessment of resources to meet the new challenges of homeland defense and ensure all prudent safety measures are evaluated and enhanced.

The department, along with other helping agencies, continues to move forward with the development of a mental health initiative. The initiative strengthens inteNention skills for officers when handling individuals suffering from mental illness.

The department continues to maximize its patrol technology through the upgrading of the department's mobile data terminals. Future initiatives include the ability to transmit and receive photographs, internal records, and mapping capabilities.

-203- DEPARTMENT/DIVISION: Leisure Services/Recreation RESPONSIBILITY: Gil Spence, Leisure Services Manager Pat Prevenas, Recreation Division Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

During Fiscal Year 2004 and the beginning of Fiscal Year 2005, the following highlights took place within the Recreation Division:

Participation in the summer playground program at seventeen morning and evening sites continues to be strong. It is our goal to involve children in active lifestyles as our small part in fighting child obesity and sedentary habits. Continuing to provide this free service on a neighborhood basis will hopefully result in some healthier and happy children.

While the coolest summer in twenty-one years impacted the attendance at Flora and Sutton swimming pools, we still attempted to improve the quality of our swim lesson program by providing quality instructor training during the preseason. We believe that the positive parent evaluations of their child's lessons received later in the summer indicated that this training was beneficial.

During the fall of 2004 we addressed a problem at Sutton Pool that impacted the proper recirculation of pool water. Because of settling of the pool tank structure on the east side of the pool, water was not flowing into the gutters around the entire pool perimeter, as designed. The fall project added material to the pool gutter that had settled, so that most of the pool basin will now flow properly in the gutter system and the water filtered and treated as intended.

The Adult Athletics activity saw an increase in the number of teams participating in the fall softball leagues at the McAleece Recreation Area and we offered a new adult touch football league this fall, but unfortunately did not obtain enough interest to hold the program.

The Iowa Coordinator for the Professional Disc Golf Association reviewed the Veterans' Memorial Disc Golf Course this fall in response to a request from the Dubuque Chamber of Commerce and our department, concerning the course being used for sanctioned tournament play. His review indicated that the course, taken as a collection of individual holes, is well designed, well-balanced, challenging and fun to play. However, there were certain issues relating to spaces between holes that present concerns for back-ups and physical safety of participants in a crowded tournament situation.

The disc golf course was not designed for tournament play, but to provide a new recreational activity for Dubuque citizens and visitors, with the terrain and budget limitations that existed at the time of construction. Play at the course continues to grow among high school, college, and young families. We also have the benefit of a small core group of enthusiasts that take pride and ownership of their home course and have invested volunteer time in improving the facility.

-204- The Bunker Hill Golf Course has faced some challenges during the past year with a decrease in golf rounds, a shift of golf rounds from eighteen-hole play to nine-hole play, some new strains of turf diseases and some staffing issues. However, in spite of these challenges, most golfers responded throughout the season that the course was in great shape and they had an enjoyable experience.

The Uptown Recreation Program has seen another revision to the After School Program offered at Prescott School. Like the program at Audubon School, we are cooperating with S1. Mark Community Center at Prescott School in providing after school services. S1. Mark's concentrates on mentoring and academic skills at the two sites while the Recreation Division provides both physical, social and craft activities for the children.

Also, Uptown Recreation Weekend Open Gym Program at S1. Patrick's school draws great participation from the neighborhood, and Four Mounds Day Camp Program has been involving children from the entire community.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006

The Bunker Hill Golf Course will continue to face financial challenges as the golf market has become more competitive. This will result in a need for better marketing and promotion of the Bunker Hill Golf Course product, attracting both new and existing golfers to Bunker Hill, evaluation of staffing levels and services provided, improved management of product inventory, and evaluation of critical golf course physical deficiencies.

Adult athletic programming will continue to be re-evaluated to be certain it is providing a quality product and to explore new programming ideas such as football, dodgeball, et cetera.

The After School Sports Program that has served fourth, fifth and sixth graders for over a decade will be restructured during the next school year. Since sixth grade students will not be attending middle school and will be serviced by the school district athletic department, our After School Sports program will include third graders, as well as fourth and fifth graders.

The construction of the new Prescott School will provide the Uptown Recreation Program new opportunities to service the downtown neighborhood. The unknown future of the S1. Patrick's gymnasium for our weekend open gym use makes the timing of the Prescott facility construction favorable.

-205- DEPARTMENT/DIVISION: Transit Division RESPONSIBILITY: Mark Munson, Transit Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

On April 5, 2004 the City Council approved the recommendations of the Transit Alternatives Analysis Steering committee to select the transit alternative to deploy two diesel-powered American Heritage Streetcars procured by the City on a route connecting the Port of Dubuque with the Downtown district. On May 26, 2004 a ribbon cutting ceremony in front of the Grand River Center introduced the trolley service that supported 18 special event services over the summer including the Grand Excursion, the Presidential Visit, Taste of Dubuque and the fall boarding schedules of the Delta and Mississippi Queen.

On March 19, 2004, East Central Intergovernmental Association (ECIA) completed a study to improve transit services for persons with disabilities funded under a grant received from Community Transportation Association of America. The study focused on the transit needs along the urban fringe areas of the City of Dubuque and all of Dubuque County and concluded with the following recommendations for the area public and private transportation providers:

Phase I

• Establish pickup/drop-off points between KeyLine Transit, the Region 8 Regional Transit. Authority (RTA) and possibly local cab companies on the edge of Dubuque's city limits. • Develop a KeyLine Transit "One-Day" pass for RTA riders. • Coordinate route and schedules between transit service providers to enhance travel time reductions, costs and wait times. • Explore and initiate future marketing strategies for RTA. • Establish a "Pilot" Citizen Volunteer/Liason Program/Operations Input Committee for Dubuque County • Consider KeyLine Transit and RTA joint driver-training programs to enhance services to persons with disabilities. • Investigate possibility of developing a joint equipment and maintenance program between KeyLine Transit and RTA to reduce costs and vehicle down time and increase safety and dependability of equipment.

Phase II

• Develop potential KeyLine Transit route deviation options intended to reduce fixed route times and costs for both KeyLine and RTA riders. • Research electronic bus pass technology for easier fare payments and rider safety. • Create website scheduling for medical providers to aid in RTA route structuring. • Research website scheduling and route information systems to aid users of KeyLine and RTA services.

-206- • Research and develop an integrated on demand response service incorporating RTA, KeyLine Transit and local cab transportation services. • Create a tiered fare rate system between all transit providers.

A stakeholders committee continues to meet quarterly to monitor implementation of the study recommendations. The meetings are facilitated by ECIA staff.

In September of 2004 the Human Rights Department completed a review of KeyLine's ADA paratransit service and provided the following recommendations to improve the service:

• Adopt stricter eligibility determinations that to be ADA paratransit eligible a person must be unable to use the fixed route service. • Establish a time limit on eligibility and require recertification/particularly for applicants who indicate the nature of their disability is temporary. • Utilize a comprehensive computer routing system to improve efficiency. • Increase number of buses available to the partransit service. • Expand subscription ridership. • Monitor answering machine and send passengers information on what information a voice message needs to contain. • Log all phone calls to track ride denials.

At the close of the 2004 Iowa legislative session, the legislative efforts of the Iowa Public Transit Association's contributed towards a successful initiative to maintain State Transit Assistance funding as established under Iowa code resulting in a 19.3% increase in FY05 State Transit Assistance funding over FY04. As of July 1, 2004, transit's share of revenues under the motor vehicle use tax established under the Code of Iowa stopped going through the state's general fund and instead go directly to Iowa DOT for distribution as State Transit Assistance. This was the best year-over-year increase for State Transit Assistance funding in the last 5-10 years. Transit Manager Mark Munson is the 2004-2005 Legislative Chair for the Iowa Public Transit Association.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

The Transit Division will review the performance of the looped trolley shuttle service and make adjustments wherever necessary in schedules and routes for the 2005-2006 season of the new service. Passenger boarding structures will be procured throWgh an RFP over the winter and will be installed in the Spring of 2005.

A marketing plan for the trolley and overall transit service is being developed by Jan Powers under a bequest the transit division received in 2004. The marketing initiative will examine print, radio, television and internet mediums for opportunities to promote service and educate the community of the benefits of public transit and inform the community of how they can access the various transit services available.

The recommendations developed from the study conducted under the grant from the Community Transportation Association of America in 2004 will continue to be developed and implemented with a particular emphasis on coordination with the local cab services and implementation of technology to aid the users of KeyLine services.

-201- The recommendations developed from the ADA paratransit review conducted by the Human Rights Department in 2004 will be refined and implemented as funding is identified for those recommendations with budget impact. The Transit Division has already started on improving eligibility determinations by updating the current database of minibus eligible riders, converting the minibus scheduling to a computer routing system and developing new procedures to monitor the voice mail system, educate the riders on essential information required for voice mail messages and tracking trip denials. A public hearing is scheduled for December 6, 2004 for the City Council to make a decision regarding a recommendation from the Transit Trustee Board to increase minibus fares and implement procedural recommendations from the ADA review. Any approved fare increase would be for the purpose of expanding existing schedules to reduce capacity constraints on the minibus system.

-208- DEPARTMENT/DIVISION: Water Department RESPONSIBILITY: Bob Green, Water Department Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

WATER PLANT

Chlorine Injection Upgrades The Eagle Point Water Plant uses sodium hypochlorite (liquid chlorine) to disinfect the drinking water. Over the last couple years the plant has switched from gas chlorine to liquid chlorine to improve safety of the disinfection process. Mixing and injection equipment was installed to improve this process. Online analyzers were also installed to monitor and automate the feed process.

ParkHill Tank Painting In FY '03, several of the steel storage tanks were inspected. This inspection showed that the exterior of Parkhill Tank was in need of painting. The exterior of the tank was completely cleaned and rust spots were ground down to bare metal and primed. The tank was then coated with a special high performance exterior paint. This repair should last 10 years or longer.

Booster Station Improvements The City of Dubuque water system has seven water storage tanks. These tanks are served by six booster stations. The age of these stations runs from 1917 to 2002. Several of the older stations need to have interior work done. Work on Parkhill and Mt. Carmel booster stations has been done. Improvements included new floors and wall repairs. All interiors were cleaned and windows and doors checked for proper sealing. These improvements will keep these stations in good working order.

Vacuum Filter Building Improvements The vacuum filter belts used to dewater lime sludge from the lime softening process were in need of repair and upgrades. New equipment and parts were installed to improve their efficiency and extend their operational life. These improvements will continue in FY '06.

WATER DISTRIBUTION

The Water Distribution Division is continuing to address the need for expanding water service to those places where it is not currently available to all citizens. Water main extensions have been constructed in the following areas of the City.

Miller Road (Existing towards the NorthWest) Installed Approximately: 800' of 8" Ductile Iron Water Main Installed: 2 - Fire Hydrants, and 4 - Valves, to provide service to existing City residents.

-209- Portzen's Commercial Property (HWY 20) Installed Approximately: 730' of 12" Ductile Iron Water Main Installed: 3-Fire Hydrants, and 7-Valves, to provide service to existing City residents.

Holiday Drive (Existing South to N.W. Arterial and connect to Red Violet Dr.) Installed Approximately: 1790' of 12" Ductile Iron Water Main Installed: 3-Fire Hydrants, and 15-Valves, to provide service to existing City residents.

Street Projects Several street reconstruction's and overlay projects have been completed. Several modifications to the water distribution network have occurred as a result of these projects.

Fremont Street (Dodge Street to Simpson Street) Replaced Approximately: 160' of 6" & 10" Water Main with new Ductile Iron Pipe Replaced: 1-Fire Hydrant, and 16-Valves

University Avenue (Spruce S1. to Delhi. S1.) Replaced Approximately: 1730' of 6" Water Main with new 8" Ductile Iron Pipe Replaced: 7-Fire Hydrants, and 40-Valves

Asbury Road (N.W. Arterial east 500') Replaced Approximately: 40' of 6" Water Main with new Ductile Iron Pipe Replaced: 1-Fire Hydrant, and 1-Valve

G.I.S. The Water Distribution Division continues the data conversion of their maps and records for the City of Dubuque's G.I.S. system. This process is ongoing and requires the digitizing of all the field drawings and daily measurements for water main extensions, water main service taps, and all the water main and fire hydrant repairs.

FUTURE INITIATIVES FOR FISCAL YEAR 2005 AND 2006:

WATER PLANT

Pump Room Pipe Painting Improvements in the pump room at the Eagle Point Water Plant were made almost 13 years ago. The new piping installed at that time is now showing signs of wear. Some of the piping and bolts are starting to rust and the paint is cracking. In FY '06, we will paint and repair these problems. This will allow the pipes to last many years into the future.

Repair Walls In South Plant Recarbonation Basins The South Plant softening and recarbonation basins were built in 1955. Cracks in the walls of the recarbonation basins have formed over the years and are now causing small leaks. These walls will be sand blasted and sealed to prevent-leaks and to increase the life of these basins.

-210- Vacuum Filter Building Improvements This improvement will continue from FY '05 and finish the repairs and upgrades to the vacuum filter belts. With the completion of this project, the equipment will be in good working order and should last many years into the future.

Water Tank Inspection Program The water tank inspection program is an ongoing program to inspect the storage tanks for corrosion or other needed repairs. All the tanks were cleaned and painted over the last 10 to 15 years. The coatings that were applied were designed to last as long as 20 to 30 years. Inspecting these tanks for minor repairs will keep these coatings in good condition and allow them to last their expected life.

WATER DISTRIBUTION It is anticipated that several proposed street reconstructions and overlay projects will take place next fiscal year. The Water Distribution Division is prepared to replace the existing water main with new for some of these projects. Valves, Hydrants, and Lead Service Lines will be replaced as needed for most of the proposed Street Improvement Projects.

Sixth Street (Bluff Street to Locust Street) Replace Approximately: 60' of 6" Water Main with new Ductile Iron Pipe Replace: 2-Fire Hydrants, 4-Valves

Rosedale Avenue (W. Locust to Grandview Ave.) Replace Approximately: 1550' of 6" Water Main with new Ductile Iron Pipe Replace Approximately: 550' of 8" Water Main with new Ductile Iron Pipe Replace Approximately: 550' of 12" Water Main with new Ductile Iron Pipe Replace: 4-Fire Hydrants, and 1a-Valves

Madison Street (1ih St. to Clarke Dr.) Replace Approximately: 10' of 6" Water Main with new Ductile Iron Pipe Replace: 1-Fire Hydrant, and 1-Valve

Hill Street (Dodge St. to 9th St.) Replace Approximately: 100' of 6" Water Main with new Ductile Iron Pipe Replace: 5-Fire Hydrants, and 14-Valves

Julien Dubuque Dr. (So. Grandview Ave. to Rip Row Valley) Replace Approximately: 80' of 6" Water Main with new Ductile Iron Pipe Replace: 8-Fire Hydrants, and 12-Valves

Backflow Prevention Program Since the adoption by the Dubuque City Council of the Backflow Prevention Program, we have established over 432 accounts having Backflow Protection Control Devices. These accounts are a combination of various Industrial and Commercial facilities. Annually we receive $25.00 per account as the administration fee. It is expected an additional 20 accounts will be established before the end of the fiscal year 2006.

We continue to stress the importance and need of while adhering to all Federal and State mandates providing for Backflow Control Devices in protecting public water supplies from potential contamination.

-211- DEPARTMENT/DIVISION: Water Pollution Control Plant RESPONSIBILITY: Paul J. Horsfall, Manager

HIGHLIGHTS OF PRIOR YEAR'S ACCOMPLISHMENTS:

Plant Improvements

For FY04 the Water Pollution Control Plant treated an average 8.005 million gallons per day (M.G.D.) or 2,921,825 million gallons for the year. Of the 8.005 MGD, 0.491 MGD, approximately 6.1 percent of the flow was from industrial activity.

The average removal of the applied biological oxygen demand (B.a.D.) was 95.3 percent. Approximately 37.0 percent of the applied B.O.D. was related to industrial activity.

The average removal of the total suspended solids (T.S.S.) was 86.7 percent. Approximately 15.3 percent of the T.S.S. was related to industrial activity.

The Water Pollution Control Plant incinerated 3,930 tons (dry weight) of sewage solids, approximately 10.8 tons (dry weight) per day.

The pump replacement project for the Terminal Street Lift Station was finished during February and March 04.

New pumps were installed at the Bradley Street Lift Station during August 04 and new pumps will be installed at the Kerper Street Lift Station during December 04 and January 05.

A major reconstruction of the north fluid bed reactor was completed during FY05 and reconstruction of south fluid bed reactor will take place during FY05 and FY06.

Laboratory Issues

The Water Pollution Control Plant's laboratory was once again recertified under EPNIDNR Certification Rules for Water and Wastewater parameters.

FUTURE INITIATIVES FOR FISCAL YEARS 2005 AND 2006:

Plant Improvements

Engineering for design of the Dog Track Lift Station modifications and the Cedar Street Lift Station modifications will take place in early 2005 with construction starting summer of 2005.

Modifications to the Water Pollution Control Plant's S.C.A.D.A. is expected to be completed in FY 05, three (3) major lift stations will be monitored with inputs to the plant's S.C.A.D.A. using wireless technology. Presently, a desktop simulation for radio waves is under way and a real simulation will take place during the spring of 05.

-212- 02 Plant basin sealing will start during FY 05 with completion during the late fall FY 06.

It is anticipated that a Vacuum Pressure Swing Adsorption Unit (VPSA) to produce liquid oxygen for the secondary treatment portion of the plant will be installed late FY05 or early FY06.

A Water Pollution Control Plant Facility Study is included in the Capital Improvement Plan (CIP) in FY 2008. The study will identify the best alternatives for sludge handling, biological wastewater treatment, alternative disinfection methods and other plant needs. Additionally, the study will examine funding options for the identified alternatives and plant components and structures that are reaching the end of their useful lives. The future costs of the Water Pollution Control Plant are not included in the FY 2006-2010 CIP budget since the cost is unknown until the study is complete.

Laboratory Issues

Review of the local limits program was completed during FY 02 and submitted to the IDNR during FY 03 for their approval. We are expecting approval during late FY 04 early FY05and once approved, we will have to modify Chapter 44; Division 6 of the Dubuque Code of Ordinances.

It is anticipated that the partnership formed with the University of Dubuque for monitoring the Catfish Creek Water Shed will continue.

The laboratory is expecting to increase lead testing of city water during FY05 and FY06 to meet water quality rules.

-213- -214- REVENUE SUMMARIES

-215- -216-

ESTIMATED TAX RATE AND TAX LEVY FISCAL YEAR 2006 RECOMMENDED BUDGET

FY 2004 FY 2005 FY 2006 Budget Budget Recommended Gross BUdget Requirement $100,628,274 $95,754,004 $115,718,896 Less Service Fund Recharges -2,040,666 -2,313,200 -2,369,795 Less Miscellaneous Revenue -64,212,472 -62,470,507 -71,579,247 Less Unencumbered Funds -4,342,364 -1,611,379 -2,187,810 Less Bond Funds -2,837,200 -1,840,000 -11,176,000 Less Section 8 Housing -4,642,204 -4,713,839 -4,729,792 Less Community Development Funds -2,036,065 -1,481,000 -1,999,353 Less Ag Land Levy -6,356 -6,356 -6,356 Less Hotel Motel Tax -989,878 -1,392,600 -1,570,602 Less Sales Tax Receipts - Operating Budget -3,339,012 -3,552,388 -3,926,955

Net Requirement Subject to Property Tax $16,182,057 $16,372,735 $16,172,986

Total Tax Levyl Non-Debt Levy Debt Levy Tax Rate Non-Debt Levy Total Levy Excluding Debt (Tax Asking wlo Debt) FY 2004 $15,915,805 $266,252 $16,182,057 I Divided by Valuation Subject to Properly Tax $1,573,871.746 $1,659,084.917 !',) ...... Tax Rate $10.1125 $0.1605 $10.2730 00 I Debt Levy Total Debt Levy (Tax Asking for Debt) FY 2005 $16,150,405 $222,330 $16,372,735 Divided by Valuation Subject to Properly Tax $1,624,116.829 $1,738,497.470 For All Levys Excluding Debt Service Tax Rate $9.9441 $0.1279 $10.0720

Tax Rate = Net Requirement FY 2006 $16,172,986 $0 $16,172,986 $1,667,481.230 $1,782,116.941 Tax Rate in Dollars per $1,000 Tax Rate $9.6991 $0.0000 $9.6991

BUDGET FY04 BUDGET FY05 RECOMMENDED FY06 TAX LEVY FUNDS Rate in I Amount Rate in I Amount Rate in I Amount Dollars/$1,OOO Levied Dollars/$1,000 Levied Dollars/$1,OOO Levied

General Fund $5.8161 $9,153,747 $4.8461 $7,870,599 $4.4351 $7,395,412 Transit Fund 0.3261 513,259 0.3799 617,048 0.4261 710,543 Debt Service Fund 0.1605 266,252 0.1279 222,330 0.0000 0 Tort Liability Fund 0.1733 272,766 0.2099 340,971 0.2203 367,274 Trust and Agency Fund 3.7970 5,976,033 4.5082 7,321,787 4.6176 7,699,757 TOTAL $10.2730 $16,182,057 $10.0720 $16,372,735 $9.6991 $16,172,986 WHERE THE MONEY COMES FROM FY 2006 RECOMMENDED TOTAL BUDGET

Other Cash Balances 4.0% Utilities 1.6% 14.9%

Operating Receipts 21.2% Utilities Federal Funds • State Funds DLocal Taxes G.O. Bonds Operating Receipts • Cash Balances .Other

G.O. Bonds 9.7% Local Taxes 25.9% Total RecOYDJDoncJod Budaet $115,718,896

IFY 2006 OPERATING BUDGETI IFY 2006 CAPITAL BUDGETI

Cash Balances Other Other Utilities 0.1% 3.7% Utilities 4.3% 7.8% 19.2% Operating Receipts Federal Funds 24.3% 10.9%

Operating Receipts 16.1%

G.O. Bonds State Funds 0.0% State Funds 28.6% 5.8% Local Taxes Local Taxes 36.0% 9.1% Total Recommeoded 0peratiDg Budget $72.218.417 Total RecommeDdod Capital BwJaet $43,soo.479 -220- -221- -222- FISCAL YEAR 2006 RECOMMENDED BUDGET BY SOURCE OF INCOME

De artment / Division

Utilities Water 4,528,423 3.91% 3,682,080 5.10% 846,343 1.95% Sewer 5,130,028 4.43% 3,378,083 4.68% 1,751,945 4.03% Refuse 2,187,317 1.89% 2,059,152 2.85% 128,165 0.29% Parking 2,022,871 1.75% 1,611,447 2.23% 411,424 0.95% Stormwater 1,037,898 0.90% 767,694 1.06% 270,204 0.62% Solid Waste 2,030,408 1.75% 2,030,408 2.81% 0.00% Transit 343,847 0.30% 343,847 0.48% 0.00% Subtotal 17,280,792 14.93% 13,872,711 19.21% 3,408,081 7.83%

Federal Funds HUO Fair Housing 56,600 0.05% 56,600 0.08% 0.00% Community Development 1,415,598 1.22% 1,152,420 1.60% 263,178 0.61% Federally Assisted Housing 5,968,753 5.16% 5,968,753 8.26% 0.00% Federal Grants-Law Enforcement 92,640 0.08% 92,640 0.13% 0.00% Federal Transit Authority 1,475,429 1.28% 583,429 0.81% 892,000 2.05% Federal Aviation Admin. 696,250 0.60% 0.00% 696,250 1.60% Subtotal 9,705,270 8.39% 7,853,842 10.88% 1,851,428 4.26%

State Funds State HOME Grant Program 49,906 0.04% 49,906 0.07% 0.00% State Health Grant 19,730 0.02% 19,730 0.03% 0.00% State Police Program Grants 12,000 0.01% 12,000 0.02% 0.00% State Library / Historical Grants 14,500 0.01% 14,500 0.02% 0.00% lOOT/Highway Maint 8,084 0.01% 8,084 0.01% 0.00% State RISE Grants 11,300,000 9.77% 0.00% 11,300,000 25.98% State Transit/Airport Assistance 291,000 0.25% 211,000 0.29% 80,000 0.18% Road Use Tax 4,911,367 4.24% 3,854,263 5.34% 1,057,104 2.43% Mobile Home Tax 28,643 0.02% 28,643 0.04% 0.00% Subtotal 16,635,230 14.38% 4,198,126 5.81% 12,437,104 28.59%

Local Taxes Property Tax 16,172,986 13.98% 16,172,986 22.39% 0.00% Hotel/Motel Tax 1,570,602 1.36% 1,570,602 2.17% 0.00% Military Service 17,073 0.01% 17,073 0.02% 0.00% Monies & Credits 23,921 0.02% 23,921 0.03% 0.00% Ag Land Tax 6,356 0.01% 6,356 0.01% 0.00% TIF Increment Property Tax 3,052,062 2.64% 3,052,062 4.23% 0.00% Gas Franchise Fee 440,000 0.38% 440,000 0.61% 0.00% Electric Franchise Fee 792,000 0.68% 792,000 1.10% 0.00% Sales Tax·50% and 20% 5,497,737 4.75% 3,926,955 5.44% 1,570,782 3.61% Sales Tax-30% 2,366,173 2.04% 0.00% 2,366,173 5.44% Subtotal 29,938,910 25.87% 26,001,955 36.00% 3,936,955 9.05%

Operating Receipts Airport 2,375,510 2.05% 2,375,510 3.29% 0.00% Ambulance 770,000 0.67% 770,000 1.07% 0.00% Animal Licenses 108,400 0.09% 108,400 0.15% 0.00% Business License/Permits 188,321 0.16% 188,321 0.26% 0.00% County Payment 149,886 0.13% 129,886 0.18% 20,000 0.05% County Participation Comm. Center 278,873 0.24% 278,873 0.39% 0.00% ORA-Gaming Revenues 10,010,801 8.65% 6,921,663 9.58% 3,089,138 7.10% ORA-Gaming Revenue for ARP/Pkg Debt 802,724 0.69% 802,724 1.11% 0.00% ORA-Equity Distribution 3,860,557 3.34% 0 0.00% 3,860,557 8_87% ORA-Police Overtime 244,847 0.21% 244,847 0.34% 0.00% Engineering Division 133,231 0.12% 118,231 0.16% 15,000 0.03% fire Training / Confined Space Service 13,750 0.01% 13,750 0.02% 0.00% -223- FISCAL YEAR 2006 RECOMMENDED BUDGET BY SOURCE OF INCOME

De artment / Division

Golf 705,619 0.61% 704,619 0.98% 1,000 0.00% Inspection (Building/Health/Fire) 638,520 0.55% 638,520 0.88% 0.00% Interest Earnings·Tax Funds 450,500 0.39% 450,500 0.62% 0.00% Library Receipts 80,335 0.07% 80,335 0.11% 0.00% Misc./Admin Overhead Charges 1,117,746 0.97% 1,117,746 1.55% 0.00%' O&M including Riverfront Leases 259,933 0.22% 259,933 0.36% 0.00% Park 223,572 0.19% 223,572 0.31% 0.00% Iowa District Court Fines 180,000 0.16% 180,000 0.25% 0.00% Information Services Recharges 244,465 0.21% 244,465 0.34% 0.00% Police 305,633 0.26% 305,633 0.42% 0.00% Recreation 614,636 0.53% 614,636 0.85% 0.00% Rental Housing 112,824 0.10% 112,824 0.16% 0.00% Cable TV 573,235 0.50% 567,455 0.79% 5,780 0.01% Zoning 97,956 0.08% 97,956 0.14% 0.00% Subtotal 24,541,874 21.21% 17,550,399 24.30% 6,991,475 16.07%

Cash Balances Tax Funds 220,528 0.19% 41,248 0.06% 179,280 0.41% Non·Enterprise COl:lstr.& Oper. Funds 1,637,347 1.41% 0.00% 1,637,347 3.76% Subtotal 1,857,875 1.61% 41,248 0.06% 1,816,627 4.18%

Land Sales 114,750 0.10% 0.00% 114,750 0.26% G.O. Bonds (Storm Sewer Abated Debt) 2,900,000 2.51% 0.00% 2,900,000 6.67% G.O. Bonds (Downtown TI F& ORA Abated Debt) 1,100,000 0.95% 0.00% 1,100,000 2.53%

G.O. Bonds (Industrial Pk West TIF Abated) 7,176,000 6.20% 0.00% 7,176,000 16.50% Loan Repayments 0 Water to General Fd 59,570 0.05% 0.00% 59,570 0.14% UDAG 281,634 0.24% 281,634 0.39% 0.00% Econ. Dev·Loan Pool and ED 158,755 0.14% 0.00% 158,755 0.36% Rehab/RRP 594,000 0.51% 0.00% 594,000 1.37% .Special Assessments 955,734 0.83% 0.00% 955,734 2.20% Private Funding 48,707 0.04% 48,707 0.07% 0.00% Subtotal 13,389,150 11.57% 330,341 0.46% 13,058,809 30.02%

Budget Less Service Funds 113,349,101 97.95% 69,848,622 96.72% 43,500,479 100.00%

Service Funds 2,369,795 2.05% 2,369,795 3.28% 0.00%

Total Budget 115,718,896 100.00% 72,218,417 100.00% 43,500,479 100.00%

-224- CITY OF DUBUQUE DISTRIBUTION OF PROPERTY TAX-CITY SHARE

Police 28.5% Fire 23.2%

Transit 2.2% Comm. Center Park Division 1.9% 6.4% Civic Center Airport Library 2.6% Engineering 2.4% 7.0% 2.9% Finance 2.6% Oper. & Maint. 3.9%

2006 Recommended Operating Budget -226- FISCAL YEAR 2006 RECOMMENDED BUDGET NET OPERATING BUDGET BY DEPARTMENT

TAXABLE MISC. REVENUE NET OPER. PERCENT DEPARTMENT/DIVISION FUNDS GENERATED BUDGET OF BUDGET

Police 9,321,600 910,346 8,411,254 28.54% Emergency Comm. Center 835,352 282,723 552,629 1.87% Fire 7,664,244 838,030 6,826,214 23.16% Emergency Management 34,680 0 34,680 0.12% Oper. & Maint. - Flood ContI 115,302 0 115,302 0.39% Building - Inspections 590,792 625,400 (34,608) -0.12%

Total 18,561,970 2,656,499 15,905,471 53.96%

Human Rights 289,468 58,950 230,518 0.78% Health Services 482,946 230,705 252,241 0.86% Park Division 2,114,661 239,279 1,875,382 6.36% Civic Center 776,018 0 776,018 2.63% Grand River Center 715,915 277,897 438,018 1.49% Recreation 1,819,775 1,328,406 491,369 1.67% Library 2,162,424 109,835 2,052,589 6.96%

Total 8,361,207 2,245,072 6,116,135 20.75%

Airport 3,029,282 2,321,229 708,053 2.40% .Transit 1,801,140 1,138,276 662,864 2.25% Oper. & Maint. 1,292,504 268,017 1,024,487 3.48% Engineering 970,888 ·118,231 852,657 2.89% Economic Development 111,916 47,713 64,203 0.22% Housing & Comm. Dev. 171,011 112,824 58,187 0.20%

Total without Debt 7,376,741 4,006,290 3,370,451 11.43% Debt Service 54,281 54,281 0 0.00% Total with Debt 7,431,022 4,060,571 3,370,451 11.43%

City Hall/Annex 168,683 0 168,683 0.57% Planning 534,570 97,956 436,614 1.48% City Council 126,232 0 126,232 0.43% City Manager's Office 504,197 118,988 385,209 1.31% Budget 117,763 26,889 90,874 0.31% Personnel 390,915 156,770 234,145 0.79% Public Information 125,878 0 125,878 0.43% Arts and Cultural Affairs 247,700 0 247,700 0.84% City Clerk 339,714 163,013 176,701 0.60% Finance 1,310,317 558,307 752,010 2.55% Legal 444,110 117,442 326,668 1.11% Information Serv 550,404 244,465 305,939 1.04% Purchase of Services 707,408 0 707,408 2.40%

Total 5,567,891 1,483,830 4,084,061 13.86%

Total Without Debt 39,867,809 10,391,691 29,476,118 100.00% Debt Service 54,281 54,281 0 Total With Debt 39,922,090 10,445,972 29,476,118 -227- DISTRIBUTION OF THE CITY PORTION OF YOUR PROPERTY TAX PAYMENT. RESIDENTIAL PROPERTY EXAMPLE FISCAL YEAR 2006 RECOMMENDED BUDGET

For a residential property, with an assessed value of $116,149 (and a taxable value of $55,705) the City portion of their Fiscal Year 2006 (July 1, 2005 - June 30, 2006) tax bill would be $493.25 with homestead tax credit. The distribution of their tax dollars to City departments and divisions would be:

NET CITY OF DUBUQUE OPERATING DEBT DEPARTMENT/DIVISION EXPENSE SERVICE TOTAL

There is no Police 140.75 Property Tax 140.75 Comm. Center 9.25 Supported 9.25 Fire 114.23 Debt 114.23 Disaster Services 0.58 0.58 Operation & Maint. 1.93 1.93 Building -0.58 -0.58 Subtotal 266.16 0.00 266.16

Human Rights 3.86 3.86 Health Services 4.22 4.22 Park Div. 31.38 31.38 Civic Center 12.99 12.99 Grand Rever Center 7.33 7.33 Recreation 8.22 8.22 Library 34.35 34.35 Subtotal 102.35 0.00 102.35

Airport 11.85 11.85 Transit 11.09 11.09 Oper. & Maint. 17.14 17.14 Engineering 14.27 14.27 Economic Development 1.07 1.07 Housing & Comm. Dev. 0.97 0.97 Subtotal 56.40 0.00 56.40

City Hall/Annex 2.82 2.82 Planning 7.31 7.31 City Council 2.11 2.11 City Manager's Office 6.45 6.45 Budget 1.52 1.52 Personnel 3.92 3.92 Public Information 2.11 2.11 Arts and Cultural Affairs 4.14 4.14 City Clerk 2.96 2.96 Finance 12.58 12.58 Legal 5.47 5.47 Information Serv 5.12 5.12 Non-Dept - Health Savings 11.84 11.84 Purchase of Serv 0.00 0.00 Subtotal 68.34 0.00 68.34

GRAND TOTAL 493.25 0.00 493.25 -228- EXPENDITURE SUMMARIES

-229- -230- HOW THE MONEY IS SPENT FY 2006 TOTAL RECOMMENDED BUDGET

Business Type Public Safety • Public Safety General 15% 17% • Public Works Government 5% • Health & Social Services o Culture & Community & Econ. Recreation Dev. • Community & 18% Econ. Dev. Public Works General Culture & Health & Social 33% Government Recreation Services • Business Type 11% 1%

Total Recommended Budget $115,718,898

IFY 2006 OPERATING BUDGETI IFY 2006 CAPITAL BUDGETI

Business Type 9% Public Safety General 1% Business Type Government 19% 3% General Government Community & 7% Econ. Dev. 22%

Community & Public Works Econ. Dev. Culture & 53% 15% Culture & Health & Social Recreation Health & Recreation Services 12% Social 11% 1% Services 0% 'ii'mn~~~~~~ -232- FISCAL YEAR 2006 RECOMMENDED BUDGET BY DEPARTMENT

Total Budget Operating Budget Capital Budet DEPT Dollars Percent Dollars Percent Dollars Percent

Public Safety Police 9,410,436 8.13% 9,362,936 12.96% 47,500 0.11 % Emergency Comm. Center 835,352 0.72% 835,352 1.16% 0.00% Fire 7,893,968 6.82% 7,697,968 10.66% 196,000 0.45% Disaster Services 34,680 0.03% 34,680 0.05% 0.00% Health Services - Animal Control 185,418 0.16% 185,418 0.26% 0.00% Oper. & Maint. - Flood Control 115,302 0.10% 115,302 0.16% 0.00% Building Services - Inspections 590,792 0.51% 590,792 0.82% 0.00% Non-Departmental Account 525,507 0.45% 525,507 0.73% Total 19,591,455 16.93% 19,347,955 26.79% 243,500 0.56%

Public Works Airport 4,116,563 3.56% 3,083,563 4.27% 1,033,000 2.37% Operation & Maintenance 9,651,071 8.34% 8,713,589 12.07% 937,482 2.16% Engineering 24,558,495 21.22% 2,850,923 3.95% 21,707,572 49.90% Non-Departmental Account 142,824 0.12% 142,824 0.20% Total 38,468,953 33.24% 14,790,899 20.48% 23,678,054 54.43% Debt Service (1,378,033) (1,378,033) Total without Debt Service 37,090,920 13,412,866 23,678,054

Health & Social Services Human Rights 290,468 0.25% 290,468 0.40% 0.00% Health Services 323,572 0.28% 323,572 0.45% 0.00% Purchase of Services 133,688 0.12% 133,688 0.19% 0.00% Non-Departmental Account 14,165 0.01% 14,165 0.02% 0.00% Total 761,893 0.66% 761 ;893 1.05% 0 0.00%

Culture & Recreation Parks 5,987,621 5.17% 2,117,661 2.93% 3,869,960 8.90% Civic Center 1,777,018 1.54% 776,018 1.07% 1,001,000 2.30% Conference Center 715,915 0.62% 715,915 0.99% 0.00% Recreation 1,999,072 1.73% 1,943,072 2.69% 56,000 0.13% Library 2,294,774 1.98% 2,162,424 2.99% 132,350 0.30% Non-Departmental Account 135,108 0.12% 135,108 0.19% 0.00% Total 12,909,508 11.16% 7,850,198 10.87% 5,059,310 11.63%

Comm. & Econ. Dev. Economic Development 10,821,017 9.35% 2,661,717 3.69% 8,159,300 18.76% Housing & Comm. Development 7,915,409 6.84% 6,769,909 9.37% 1,145,500 2.63% Planning Services 772,084 0.67% 647,084 0.90% 125,000 0.29% Purchase of Services 828,977 0.72% 828,977 1.15% 0.00% Non-Departmental Account 59,999 0.05% 59,999 0.08% 0.00% Total 20,397,486 17.63% 10,967,686 15.19% 9,429,800 21.68% Debt Service (1,523,035) (1,523,035) Total without Debt Service 18,874,451 9,444,651 9,429,800

-233- FISCAL YEAR 2006 RECOMMENDED BUDGET BY DEPARTMENT

Total Budget Operating Budget Capital Budet DEPT Dollars Percent Dollars Percent Dollars Percent

General Government Bldg. Servo - City Hall/Anex Maint. 451,357 0.39% 176,357 0.24% 275,000 0.63% City Council 326,232 0.28% 326,232 0.45% 0.00% City Manager 1,878,531 1.62% 1,394,658 1.93% 483,873 1.11 % City Clerk 339,714 0.29% 339,714 0.47% 0.00% Finance 1,310,317 1.13% 1,310,317 1.81 % 0.00% Cable TV 257,204 0.22% 257,204 0.36% 0.00% Legal 444,110 0.38% 444,110 0.61% 0.00% Information Serv 1,029,693 0.89% 629,196 0.87% 400,497 0.92% Non-Departmental Account 94,126 0.08% 94,126 0.13% 0.00% Total 6,131,284 5.30% 4,971,914 6.88% 1,159,370 2.67%

Business Type Water 4,216,346 3.64% 3,406,846 4.72% 809,500 1.86% Water Pollution Control 3,358,887 2.90% 2,853,942 3.95% 504,945 1.16% Parking Division 3,565,843 3.08% 2,064,843 2.86% 1,501,000 3.45% Transit 2,916,140 2.52% 1,801,140 2.49% 1,115,000 2.56% Oper. & Maint. - Landfill 2,009,048 1.74% 2,009,048 2.78% 0.00% Engineering - Sewer/Stormwater 974,251 0.84% 974,251 1.35% 0.00% Finance - Meter Reads/Service 236,727 0.20% 236,727 0.33% 0.00% Non-Departmental Account 181,075 0.16% 181,075 0.25% 0.00% Total with Debt 17,458,317 15.09% 13,527,872 18.73% 3,930,445 9.04% Debt Service (1,361,604) (1,361,604) Total without Debt Service 16,096,713 12,166,268 3,930,445

TOTAL WITH DEBT 115,718,896 100.00% 72,218,417 100.00% 43,500,479 100.00% DEBT SERVICE (4,262,672) (4,262,672) TOTAL WITHOUT DEBT 111,456,224 67,955,745 43,500,479

-234- CITY OF DUBUQUE GRAND TOTAL SUMMARY

FY 2003 FY 2004 FY 2005 FY 2006 ACTUAL ACTUAL ADOPTED RECOMMENDED PROGRAM EXPENSE * EMPLOYEE EXPENSE 33,375,835 36,231,598 38,821,216 40,804,122 SUPPLIES & SERVICES 21,043,723 21,035,277 22,133,847 24,786,910 CAPITAL OUTLAY 1,393,440 1,346,354 1,094,842 2,037,302 SUBTOTAL 55,812,998 58,613,229 62,049,905 67,628,334

DEBT SERVICE 5,720,305 4,624,435 3,894,755 4,262,672 NON-EXPENSE ACCOUNTS 221,609 261,134 308,571 327,411

TOTAL OPERATING BUDGET 61,754,912 63,498,798 66,253,231 72,218,417

CAPITAL IMPROVEMENTS 49,317,642 37,010,388 29,572,947 . 43,500,479

TOTAL BUDGET 111,072,554 100,509,186 95,826,178 115,718,896 I !',) c.nW I * Excludes non-program expense for self-insurance accounts and Metro Landfill accounts

OPERATING EXPENDITURES BY FUND

010 GENERAL FUND 31,228,264 33,931,794 35,265,100 38,977,694 050 TRANSIT FUND 1,750,949 1,968,608 1,730,361 1,848,819 090 DEBT SERVICE FUND 1,732,573 1,183,989 1,596,608 818,789 110 TRUST & AGENCY FUND 51,583 987 0 0 120 TIF-METRIX/NORDSTROM 755,563 983,235 307,560 1,106,001 124 TIF-ADV. DATA COM. TECH PARK 128,087 128,087 128,087 128,087 125 TIF-ICE HARBOR TIF 856 0 0 0 126 TIF-EAST 7TH STREET 41,437 19,705 15,000 20,194 127 TIF-KERPER BLVD 489,285 489,285 489,285 489,285 128 TIF-CARTEGRAPH 58,000 58,000 58,000 58,000 129 TIF-QUEBECOR 60,000 15,108 130 TAX INCRE-DOWNTOWN 845,998 988,092 880,261 980,350 150 ROAD USE TAX FUND 2,965,649 3,199,014 3,731,228 3,854,263 210 COMM DEVEL FUND 953,083 991,324 1,135,481 1,152,420 CITY OF DUBUQUE GRAND TOTAL SUMMARY

FY 2003 FY 2004 FY 2005 FY 2006 ACTUAL ACTUAL ADOPTED RECOMMENDED PROGRAM EXPENSE * 215 LEAD GRANT PROGRAM 1,007,028 230,113 670,750 1,238,961 220 UDAG REPAYMENTS 674,807 399,789 240,698 281,634 230 SECTION 8 HOUSING FD 4,652,429 4,527,464 4,718,563 4,729,792 270 RRP LOAN REPAYMENTS 38,236 33,787 23,004 49,906 440 GO BOND FUND 617,677 15,723 450 WATER UTIL-OPER FUND 3,262,926 3,377,252 3,429,990 3,682,080 460 SEWAGE UTIL-OPER FD 3,352,595 3,260,890 3,266,300 3,378,083 470 REFUSE COLLECTION FD 1,798,007 1,878,813 1,911,654 2,059,152 480 STORMWATER UTILITY 174,151 381,820 767,694 940 LANDFILL OPER FUND 1,696,499 1,712,975 1,885,257 2,030,408 490 PARKING FAC-OPER FD 1,253,995 1,358,168 1,480,604 1,611,447 540 CABLE TV FUND 533,292 550,965 534,660 567,455 550 ENGINEERING SERV FD 896,330 985,529 1,077,050 1,168,626 I !'.:) 570 GARAGE SERVICE FUND 917,503 1,000,129 1,234,910 1,200,169 eN 0) I 590 GENERAL SERVICE FUND 9,243 783 0 1,000 620 STORES/PRINTING FUND 4,655 6,844 0 0 830 ELLA LYONS PEONY TR 1,874 624 1,000 3,000 840 LIBRARY GIFTS TR FD 36,489 42,679

TOTAL OPERATING BUDGET 61,754,912 63,498,798 66,253,231 72,218,417

CAPITAL EXPENDITURES BY FUND

010 GENERAL FUND 6,443,813 8,261,731 2,827,094 4,288,357 050 TRANSIT FUND 94,456 565,504 646,540 1,115,000 13/131 TAX INCRE-DOWNTOWN 30,768 10,000 100,000 120,000 150 ROAD USE TAX FUND 168,908 406,605 693,538 1,264,000 210 COMM DEVEL FUND 1,480,388 643,512 947,610 846,933 212 COMM DEV DISCRETION 26,453 8,047 0 0 220 UDAG REPAYMENTS 172,472 51,576 38,000 0 230 SECTION 8 HOUSING FD 0 0 171,500 0 270 STATE RENTAL REHAB 104,932 (2,145) 155,000 49,000 271 STATE HOME PROGRAM 51,199 990 0 0 300 STREET CONST FUND 6,067,039 5,911,195 10,947,000 14,135,770 CITY OF DUBUQUE GRAND TOTAL SUMMARY

FY 2003 FY 2004 FY 2005 FY 2006 ACTUAL ACTUAL ADOPTED RECOMMENDED PROGRAM EXPENSE * 310 SAN·SEWER CONST FD 648,215 1,368,513 2,627,055 1,984,445 320 STORM SEWER CONST FD 936,684 2,025,341 3,269,625 3,920,304 330 PARKING FAC CONST FD 138,098 229,497 223,050 1,509,800 340 WATER CONST FUND 2,361,089 1,628,767 1,317,500 82.1,900 350 SALES TAX CONSTR. FD 780,851 366,409 556,900 585,900 360 GENERAL CONSTR FUND 974,550 674,634 520,000 8,620,750 390 AIRPORT CONST FUND 2,168,198 848,125 1,308,500 1,033,000 410 AMERICA'S RIVER FD 26,428,891 13,715,655 3,061,185 3,089,000 430 GOLF CONSTRUCTION FD 12,625 0 53,700 1,000 470 REFUSE COLLECTION FD 185,776 249,000 85,450 109,540 480 LANDFILL FD 399 0 6,200 0 570 GARAGE SERVICE FUND 0 6,270 0 0 540 CABLE TV 41,838 41,162 17,500 5,780 I wI'V TOTAL CAPITAL BUDGET 49,317,642 37,010,388 29,572,947 43,500,479 -....I I 0 TOTAL BUDGET 111,072,554 100,509,186 95,826,178 115,718,896 CITY OF DUBUQUE FISCAL YEAR 2006 OPERATING BUDGET BY MAJOR CATEGORIES AND DEPARTMENT

EMPLOYEE SUPPLIES & CAPITAL NON·EXP SUBTOTAL DEBT CIP TOTAL DEPT EXPENSE SERVICES OUTLAY ACCOUNTS OPERATING SERVICE BUDGET BUDGET

Police Department 8,075,400 953,014 334,522 9,362,936 47,500 9,410,436 Emergency Communications 772,131 57,221 6,000 835,352 835,352 Fire Department 7,114,966 468,122 114,880 7,697,968 196,000 7,893,968 Disaster Services 34,680 34,680 34,680 Building Services Dept. 523,639 42,553 24,600 590,792 590,792 Human Rights Department 196,158 94,310 290,468 290,468 Health Services Department 319,484 159,006 30,500 508,990 508,990 Park Division 1,543,496 363,015 211,150 2,117,661 3,869,960 5,987,621 Civic Center Division 68,322 707,696 776,018 1,001,000 1,777,018 Grand River Center 715,915 715,915 715,915 Recreation Division 1,098,918 805,044 39,110 1,943,072 56,000 1,999,072 Library Department 1,455,264 678,165 28,995 2,162,424 132,350 2,294,774 Water Department 1,505,811 1,493,431 123,600 3,091 3,125,933 280,913 809,500 4,216,346 Water Poll. Control Dept 1,232,232 1,584,853 34,300 2,557 2,853,942 504,945 3,358,887 ~ Parking Division 612,859 354,434 15,470 1,389 984,152 1,080,691 1,501,000 3,565,843 cr Airport Department 1,075,389 1,739,488 214,405 3,029,282 54,281 1,033,000 4,116,563 Transit Division 1,192,815 604,224 4,101 1,801,140 1,115,000 2,916,140 Oper. & Maint. Dept 5,689,398 4,311,342 553,835 283,364 10,837,939 937,482 11,775,421 Engineering Div. 1,906,103 438,403 110,200 46,716 2,501,422 1,323,752 21,707,572 25,532,746 Economic Development 239,271 894,011 5,400 1,138,682 1,523,035 8,159,300 10,821,017 Housing & Comm. Dev. 1,324,305 5,391,560 54,044 6,769,909 1,145,500 7,915,409 Neighborhood Development 69,300 23,175 92,475 92,475 Cable TV Division 152,791 72,335 31,758 320 257,204 257,204 City Hall/Annex 176,357 176,357 275,000 451,357 Planning Services Dept 531,024 91,905 24,15? 647,084 125,000 772,084 City Council 63,528 262,554 150 326,232 326,232 City Manager's Office 994,390 301,943 5,850 1,302,183 483,873 1,786,056 City Clerk's Office 210,948 121,466 7,300 339,714 339,714 Finance Department 933,720 618,240 5,110 (10,026) 1,547,044 1,547,044 Legal Department 307,726 126,334 10,050 444,110 444,110 Information Servo Div. 441,930 139,449 47,817 629,196 400,497 1,029,693 Non-Dept--Health Savings 1,152,804 1,152,804 1,152,804 Purchase of Serv 962,665 962,665 962,665

TOTAL ALL PROGRAMS 40,804,122 24,786,910 2,037,302 327,411 67,955,745 4,262,672 43,500,479 115,718,896 CITY OF DUBUQUE RECOMMENDED FISCAL YEAR 2006 OPERATING BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT

EMPLOYEE SUPPLIES & CAPITAL DEBT CLEARING FUND DEPARTMENT/DIVISION EXPENSE SERVICES OUTLAY SERVICE ACCOUNT TOTAL

General Police Department 8,037,464 953,014 334,522 9,325,000 Emergency Communications Div. 772,131 57,221 6,000 835,352 Fire Department 7,081,242 468,122 114,880 7,664,244 Emergency Management 34,680 34,680 Building Services Department 523,639 47,309 12,170 583,118 Human Rights Department 196,158 93,310 289,468 Health Services Division 295,269 157,177 30,500 482,946 Park Division 1,543,496 360,015 211,150 2,114,661 Civic Center Division 68,322 707,696 776,018 Grand River Center .715,915 715,915 Recreation Division 1,039,869 740,796 39,110 1,819,775 Library Department 1,455,264 678,165 28,995 2,162,424 Airport Department 1,075,389 1,739,488 214,405 54,281 3,083,563 Public Works/Engineering Division 670,601 201,437 98,850 970,888

I Operations/Maintenance Dept. 913,711 702,048 121,075 (329,028) 1,407,806 I'V Economic Development 71,320 38,004 2,592 111,916 c.oeN I Housing and Comm.Dev. Dept. 145,239 19,522 6,250 171,011 Planning Services Department 447,388 73,777 13,405 534,570 City Hall/Annex Maintenance 165,357 11,000 176,357 City Council 63,528 262,554 150 326,232 City Manager's Office 916,176 264,427 5,850 1,186,453 City Clerk's Office 210,948 121,466 7,300 339,714 Finance Department 839,816 477,317 3,210 (10,026) 1,310,317 Legal Department 307,726 126,334 10,050 444,110 Information Services Division 363,138 139,449 47,817 550,404 Non-Departmental 853,344 853,344 Purchase of Services 707;408 707,408 Total, General Fund 27,891,178 10,052,008 1,319,281 54,281 (339,054) 38,977,694 CITY OF DUBUQUE RECOMMENDED FISCAL YEAR 2006 OPERATING BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT

EMPLOYEE SUPPLIES & CAPITAL DEBT CLEARING FUND DEPARTMENT/DIVISION EXPENSE SERVICES OUTLAY SERVICE ACCOUNT TOTAL

Transit Transit Division 1,192',815 604,224 4,101 1,801,140 Non-Departmental 47,679 47,679 Total,Transit Fund 1,240,494 604,224 4,101 1,848,819

Service Public Works/Engineering Division 815,514 815,514 Finance Department 3,275 3,275 Total, Debt Service Fund 3,275 815,514 818,789

Tax Economic Development Dept 801,909 1,523,035 2,324,944 Increment Parking Division 472,081 472,081 Total, Tax Increment Funds 801,909 1,995,116 2,797,025 I !'.:) ~ ?Road Use Operations/Maintenance Dept. 1,660,899 1,635,331 365,150 136,174 3,797,554 Tax Engineering Department 4,500 10,950 15,450 Non-Departmental 41.259 41,259 Total, Road Use Tax Fund 1,702,158 1,639,831 376,100 136,174 3,854,263

Community Recreation Division 59,049 64,248 123,297 Development Economic Development Dept 105,482 19,098 2,808 127,388 Housing and Comm. Dev. 452,079 120,998 25,294 598,371 Planning Services Department 83,636 18,128 10,750 112,514 Health Services Department 700 700 Human Rights Department 1,000 1,000 City Manager's Office 69,300 23,175 92,475 Purchase of Services 73,415 73,415 Non-Departmental 23,260 23,260 Total, Comm. Dev. Fund 792,806 320,762 38,852 1,152,420

Lead Paint Housing and Community Dev. 164,107 1,063,235 8,100 1,235,442 Grant Non-Departmental 3,519 3,519 Total, Lead Paint Grant 167,626 1,063,235 8,100 1,238,961 CITY OF DUBUQUE RECOMMENDED FISCAL YEAR 2006 OPERATING BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT

EMPLOYEE SUPPLIES & CAPITAL DEBT CLEARING FUND DEPARTMENT/DIVISION EXPENSE SERVICES OUTlAY SERVICE ACCOUNT TOTAL

UDAG Economic Development 62,469 35,000 97,469 Repayment Purchase of Service 181,842 181,842 Non-Departmental 2,323 ( 2,323 Total, UDAG Repmt. Fund 64,792 216,842 281,634

Section 8 Housing and Comm. Dev. 540,651 4,161,304 14,400 4,716,355 Housing Non-Departmental 13,437 13,437 Total. Section 8 Housing Fund 554,088 4,161,304 14,400 4,729,792

RRP Housing and Comm. Dev. 22,229 26,501 48,730 Repay. Non-Departmental 1,176 1,176 Total. UDAG Repmt. Fund 23,405 26,501 49,906 I 1'-:1 ~ ,Water Water Department 1,505,811 1,493,431 123,600 280,913 3,091 3,406,846 Operating Finance Department 93,904 137,648 1,900 233,452 Non-Departmental 41,782 41,782 Total. Water Operating Fund 1,641,497 1,631,079 125,500 280,913 3,091 3,682,080

Sewer Public Works/Engineering Division 77,138 9,864 87,002 Operating Water Pollution Control Dept. 1,232,232 1,584,853 34,300 2,557 2,853,942 Operations/Maintenance Dept. 269,281 87,534 17,500 19,928 394,243 Non-Departmental 42,896 42,896 Total, Sewer Operating Fund 1,621,547 1,682,251 51,800 22,485 3,378,083

Refuse Operations/Maintenance Dept. 1,302,667 643,714 15,000 67,738 2,029,119 Non-Departmental 30,033 30,033 Total, Refuse Fund 1,332,700 643,714 15,000 67,738 2,059,152 CITY OF DUBUQUE RECOMMENDED FISCAL YEAR 2006 OPERATING BUDGET BY MAJOR EXPENSE CATEGORIES BY FUND AND DEPARTMENT

EMPLOYEE SUPPLIES & CAPITAL DEBT CLEARING FUND DEPARTMENTIDIVISION EXPENSE SERVICES OUTLAY SERVICE ACCOUNT TOTAL

Stormwater Engineering Department 212,740 508,238 46,716 767,694 Total, Stormwater Operating 212,740 508,238 46,716 767,694

Landfill Operations/Maintenance Dept. 793,277 1,171,238 44,533 2,009,048 Non-Departmental 21,360 21,360 Total, Landfill Operating Fund 814,637 1,171,238 44,533 2,030,408

Parking Parking System 612,859 354,434 15,470 608,610 1,389 1,592,762 Non-Departmental 18,685 18,685 Total, Parking Operating Fund 631,544 354,434 15,470 608,610 1,389 1,611,447

Cable TV City Hall Annex Maintenance 6,244 1,430 7,674 I I'.:> Police Department 37,936 37,936 ..j:::o. I'.:> Fire Department 33,724 33,724 I Health Services Division 24,215 1,129 25,344 Cable TV Division 152,791 72,335 31,758 320 257,204 City Manager's Office 78,214 36,516 114,730 Information Services 78,792 78,792 Non-Departmental 12,051 12,051 Total, Cable TV Fund 417,723 116,224 33,188 320 567,455

Trusts Park Divsion 3,000 3,000 Total, Trust Funds 3,000 3,000

Service Public Works/Engineering Division 1,158,364 9,862 400 1,168,626 City Manager's Office 1,000 1,000 Operations/Maintenance Dept. 749,563 71,477 35,110 344,019 1,200,169 Total, Service Fund 1,907,927 82,339 35,510 344,019 2,369,795

OPERATING BUDGET 40,804,122 24,786,910 2,037,302 4,262,672 327,411 72,218,417 DISTRIBUTION OF

COMMUNITY DEVELOPMENT

FUNDS

-243- -244- CITY OF DUBUQUE, IOWA FY 2006 ANNUAL ACTION PLAN

FOR THE USE OF PROGRAM YEAR 2005 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS

INTRODUCTION The FY 2006 Annual Action Plan for the use ofProgram Year 2005 Community Development Block Grant Funds has resulted from a two-month process ofpublic involvement and decision-making regarding the needs, priorities and proposed uses ofCDBG funds in the City ofDubuque, Iowa. The following action plan represents the efforts ofcitizens, commissioners, public officials and staffto craft a document responsive to identified opportunities and needs in the community.

RESOURCES Federal resources expected to be available to address the priorityneeds identified in this plan include CDBG funds. The City anticipates $1,985,061 in CDBG assistance in Fiscal Year 2006 (July 1,2005 - June 30, 2006), which includes the annual entitlement of$I,398,731and program income of $586,330. Program income will be used to establish two Economic Development revolving loan funds for an economic development loan program and a commercial/industrial building rehabilitation loan program. The City ofDubuque will utilize other federal assistance programs as appropriate to meet community needs. Sources offunds include $4 million in Section 8 rental assistance payments, HOME Program funds, EDA Public Works Grant Program and SBA 504 loan program. The City continues to work with developers to access Low Income Housing Tax Credits and Historic Preservation Tax Credits in order to develop feasible housing projects.

DESCRIPTION OF ACTIVITIES The City ofDubuque distinguishes between four different but complementary areas ofprogram development in its overall CDBG program: Housing Development, Economic Development, Neighborhood and Community Development and Planning & Administration. The following description ofactivities summarizes the projects to be completed in the FY 2006 Annual Action Plan with the use ofCDBG funds:

F:\Users\ATAUKE\CDBG\AnnuaIPlan\FY 05\05 HUD Action Plan.doc

-245- COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN • F\' 2006 AMENDMENT 1

REVISED JAN 12, 2005 Neighborhood and Community Commission Staff Proposed REVISED Development Programs Recommendation Proposal Funding Sources FY06 FY06 Accessible Curb Ramps $ 60,760 $ 60,760 Estimated Entitlement 1,474,000 1,398,731 hild Care Resource/Referral - Project Concern $ 8,576 $ 8,576 Program Income 547,575 547,575 Community Partnership Program (CP2) $ 90,000 $ 77,000 ED Revolving Loan Funds 38,755 38,755 Deer Management Food Program $ 700 $ 700 Total Sources 2,060,330 1,985,061 Dubuque Dispute Resolution Center $ 1,000 $ 1,000 Downtown Resource Guide- Project Concern $ - $ Information & Referral - Project C.oncern $ 24,339 $ 24,339 Housing Development Programs: Commission Staff Leadership Training $ 5,000 $ 5,000 Recommendation Proposal Neighborhood Development Services & Staff* $ 74,475 $ 74,475 First Time Homebuyer Program 75,000 75,000 Neighborhood Infrastructure Improvements $ 50,000 $ 50,000 Historic Preservation Rehab Grant 20,000 20,000 Neighborhood Recreation Program $ 122,225 $ 123,297 I I'.:) Homeowner Rehab Program* 320,000 271,000 Neighborhood Support Grants $ 28,873 $ 28,873 "j::a,. 0') Housing Administration* 57,417 57,417 Senior Center $ 25,000 $ 25,000 I Housing Code Enforcement* 114,230 114,766 Washington Tool Library $ 15,500 $ 15,500 Housing Rehabilitation Services and Staff* 275,101 275,322 Zoning Inspection/Enforcement $ 13,000 $ 13,000 Lead Paint Hazard Abatement 60,000 60,000 Neighborhood & Comm. Develop. Totals $ 519,448 $ 507,520 Purchase/Rehab/Resale (DREAMS) 15,000 15,000 Rental Unit Rehabilitation 80,000 80,000 Planning & Administration Programs: Commission Staff Housing Totals 1,016,748 968,505 CDBG Admin. Services and Staff * Recommendation Proposal COBG Admin/Monitoring $ 90,866 $ 90,866 Economic Development Programs: Commission Staff Finance $ 5,865 $ 5,865 Recommendation Proposal City Planning Services and Staff Commercial/Industrial Building Rehab 100,000 100,000 Planning Administration* $ 14,299 $ 14,299 E.D. Financial Assistance Program 69,300 69,300 Planning City Planning* $ 112,509 $ 98,215 Economic Development Services and Staff* 129,908 129,908 Planning and Administration Totals $ 223,539 $ 209,245 Economic Development Totals 299,208 299,208 Contingency $ 1,387 $ 583 TOTAL CDSG 2,060,330 1,985,061 *FY 2006 Action Plan does not reflect a employee wage package since no settlement has been reached with the bargaining units. This will need amending when determined. Over BUdget 75,269 $

Revised FY 06 Summary Page 4 HOUSING DEVELOPMENT PROGRAMS First Time Home Buyer Program $75,000 This program provides for loans ofup to $5000 to assist low and moderate income families to purchase their first homes. These funds are used to cover the "entry costs" ofhomeownership - down payments and closing costs. National Objective: Low and Moderate Income Housing Location: Citywide Proposed Accomplishments: 15 Households Local Objective: TlGl.l Priority: High

Historic Preservation Rehabilitation Grants $20,000 This program provides grants to low and moderate income homeowners to help them meet required historic preservation rehabilitation standards. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 4 Housing units Local Objective: TIG5.2 Priority: Medium

Homeowner Rehabilitation $271,000 1) Operation: Paintbrush An on-going grant program, which provides low and moderate-income homeowners with exterior house paint free ofcharge. Homeowners are required to arrange for the actual painting oftheir homes. 2) Operation: Upkeep Grant or deferred payment loan for minor exterior repairs up to $5,000 to income-eligible homeowners. 3) Residential Rehabilitation Loan Program An on-going program to provide low-interest loans to qualified low and moderate-income homeowners for the rehabilitation ofsubstandard housing units. 4) SewerlWater Connection Loan A program provides loans to low income homeowners to pay for sanitary sewer connection charges and emergency repairs to water and/or sewer lines. National Objective: Low and Moderate Income Housing Location: Citywide Proposed Accomplishments: 50 Housing units Local Objective: TlGl.2 Priority: High

Housing Planning!Administration Services and Staff $57,417 On-going staff support for general housing planning activities, including Consolidated Plan, and department administration.

Local Objective: TlG2.1 Priority: High

Housing Code Enforcement $114,766 Intensive program ofinspection ofrental units within low and moderate-income neighborhoods to ensure the provision of safe and sanitary housing. . National Objective: Low and Moderate Income Benefit Location: LowlModerate Income Areas Proposed Accomplishments: 1000 Housing units Local Objective: TlG5.1 Priority: High

-247- Housing Rehabilitation Services and Staff $275,322 On-going staffsupport, including program management, technical assistance, loan packaging and inspection, for the City's rehabilitation loan program. Local Objective: TIG2.4 Priority: High

Lead Paint Hazard Reduction $60,000 Provides activities in support ofefforts to combat lead paint hazards in housing, including assessment and abatement with grants ofup to $6000 to low/moderate income residents. National Objective: Low and Moderate Income Housing Location: Low/Moderate Income Areas Proposed Accomplishments: 10 Housing units Local Objective: TIG2.5 Priority: High

PurchaselRehabilitationlResale (DREAMS) $15,000 This program provides funding to address the redevelopment ofderelict properties. Properties acquired are resold to low/mod income homebuyers as part ofthe DREAMS program or to landlords who will provide affordable rents. National Objective: Low and Moderate Income Housing Location: Citywide Proposed Accomplishments: 1 Housing unit Local Objective: TlG2.5 Priority: Medium

Rental Unit Rehabilitation $80,000 1) Emergency Code Enforcement Loan Program This program provides for rehab loans to correct code deficiencies and, in particular, emergency or health and safety corrections, for rental properties. The program aims at preventing the displacement ofeconomically disadvantaged tenants as a result ofcode enforcement actions. Loans are fully amortized, no deferred payment terms.

2) Moderate Income Rental Rehab Loan Program This program provides loans to rehabilitate rental units throughout the community and is not tied to the Section 8 rental assistance program. The program is intended for renters at the 50-80 % ofmedian income and loans are made fully amortizing with no deferred payment periods.

3) Accessibility Rehab This program provides grants to disabled tenants to make rental units accessible to the physically disabled.

4) Single Room Occupancy Rehab This loan program targets the rehabilitation ofsingle room occupancy units. National Objective: Low and Moderate Income Housing Location: Citywide Proposed Accomplishments: 8 Housing units Local Objective: , Tl G2.4 Priority: High

Total Housing Programs $968,505

-248- ECONOMIC DEVELOPMENT PROGRAMS

Economic Development Financial Assistance Program $100,000 This program provides both large and small businesses with attractive low-interest loan packages to support local economic development efforts, including projects to create or retain jobs, enhance the tax base and strengthen the local economy. To the greatest extent possible, these investment capital funds are used to benefit low and moderate income citizens, address slum and blight problems, leverage additional funding from state, federal and private sources and to assist in the retention and expansion ofexisting local businesses. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 20 Jobs Local Objective: T3GI.I Priority: High

CommercialJIndustrial Building Rehab Loans $69,300 This program provides low interest loans for rehabilitation ofcommercial and industrial buildings in the City's older neighborhoods and downtown. Rehabilitation assistance is limited to improvements to the exterior ofthe building and to the correction ofcode violations. National Objective: Removal ofSlum and Blight Location: Slum and Blight Area Proposed Accomplishments: I Business Local Objective: T3G2.2 Priority: Medium

Economic Development Program Services & Staff $129,908 Staffis responsible for the formulation, coordination and implementation oflocal economic development strategies. Staff acquires, develops and manages land for industrial development. Technical and financial assistance to local businesses in support ofincreased employment opportunities for low/mod income population is also provided. Local Objective: T3G4.4 Priority: High

Total Economic Development Programs $299,208

NEIGHBORHOOD and COMMUNITY DEVELOPMENT PROGRAMS

Accessible Curb Ramps $60,760 Replace curbs at intersections throughout the City with accessible ramps to make public sidewalks accessible to persons with disabilities. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 50 Accessible ramps Local Objective: T2G3.1 Priority: Medium

Child Care Resource and Referral $ 8,576 This purchase ofservices project provides childcare information and assistance to both those needing childcare and to providers. National Objective: Low and Moderate Income Benefit Location: LowlModerate Income Areas Proposed Accomplishments: 500 People Local Objective: T2GI.I .. Priority: High

-249- Community Partnership Program (CP2) $77,000 An on-going grant program to provide support for activities developed and implemented by private agencies designed to benefit the community's low and moderate income residents or special needs populations. Funds are awarded on a competitive basis and are limited to $50,000 per recipient per year. The program is designed to support new and innovative projects, including capital expenditures and pilot programs and the removal ofarchitectural barriers for accessibility. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 500 People Local Objective: T2GI.3 Priority: High

Deer Management Food Program $700 The program assists in processing donated deer from the urban deer management program to be distributed to low/moderate income persons through the St. Stephen's Food Bank.

National Objective: Low and Moderate Income Benefit Location: CityWide Proposed Accomplishments: 50 Households Local Objective: T2GI.3 Priority: High

Dubuque Dispute Resolution Center $1,000 Training, marketing and promotion ofthe Dubuque Dispute and Resolution Center. National Objective: Low and Moderate Income Benefit Location: City Wide Proposed Accomplishments: 30 People Local Objective: TIG3.3 Priority: Medium

Information & Referral Services $24,339 The purchase ofservices from Project Concern/Phone A Friend, Inc. Services for a twenty-four hour information network for community residents and a resource/counseling center for community services. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 2500 People Local Objective: T2GI.3 Priority: High

Leadership Training $5,000 This provides leadership-training opportunities to neighborhood organization members or residents oflow/mod income neighborhoods working to revitalize their neighborhoods. National Objective: Low and Moderate Income Benefit Location: Low/ Moderate Areas Proposed Accomplishments: 3 Organizations Local Objective: T2G2.2 Priority: High

Neighborhood Development Services & Staff $74,475 The Neighborhood Development Specialist coordinates the City's neighborhood Development programs and provides technical assistance to organizations and residents to improve Dubuque's neighborhoods. National Objective: Low and Moderate Income Benefit Location: Low/ Moderate Areas Proposed Accomplishments: 9 Organizations Local Objective: T2G2.I Priority: High

-250- Neighborhood Infrastructure Improvements $50,000 1) Neighborhood Street Overlays Provides for pavement overlays in income eligible neighborhoods.

2) Neighborhood Sidewalk Program An on-going grant program to income eligible homeowners, on a case-by-case basis, to pay 75% ofthe cost to repair public sidewalks in front oftheir homes.

3) Neighborhood SteplWall Repair An on-going program to renovate or remove steps and walls that are public safety problems in low-income areas. National Objective: Low and Moderate Income Benefit Location: Low/Moderate Income Areas Proposed Accomplishments: 25 public facilities Local Objective: T2G3.1 Priority: Medium

Neighborhood Recreation Programs $123,297 An enhanced recreation program is offered in the City's older low and moderate-income neighborhoods to meet the needs ofat-risk youth, promote self-esteem and build community. Activities include expanded after-school programs, open gym, basketball league and summer day camp.

National Objective: Low and Moderate Income Benefit Location: LowlModeratelncome Areas Proposed Accomplishments: 4500 People Local Objective: T2Gl.5 Priority: High

Neighborhood Support Grants $28,873 This grant program provides resources for organized neighborhoods in low/mod income areas to encourage self-initiated revitalization efforts including physical improvements, clean-ups, communication efforts or other special projects. National Objective: Low and Moderate Income Benefit Location: LowlModerate Income Areas Proposed Accomplishments: 8000 People Local Objective: T2G2.3 Priority: High

Senior Center $25,000 Education and recreation services provided to elderly citizens at the Dubuque Area Lifetime Center. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 800 People Local Objective: Tl G3.4 Priority: High

Washington Tool Library $15,500 An on-going free tool loan program operated by the Washington Neighborhood Tool Library, a non-profit organization staffed by volunteers. Funds are used to buy and repair tools and to cover building rent and utilities. Income eligible residents borrow tools at no charge for home repairs and improvements National Objective: Low and Moderate Income Benefit Location: City Wide Proposed Accomplishments: 800 People Local Objective: Tl G2. 1 Priority: High

-251- Zoning Inspection/Enforcement $13,000 This project provides funding for inspection/enforcement staffservices to low/mod income areas for zoning ordinance infractions and to provide support for neighborhood clean up efforts. National Objective: Low and Moderate Income Benefit Location: LowlModerate Income Areas Proposed Accomplishments: 250 Housing Units Local Objective: T2G2.5 Priority: High

Total Neighborhood and Community Development Programs $507,520

PLANNING AND ADMINISTRATION

CDBG Administration Services and Staff $90,866 Staffsupport for general management. Oversight and coordination ofthe Community Development Block Grant program; assures compliance with federal regulations and reporting requirements. Local Objective: T2G3.3 Priority: High

Finance Services and Staff $5,865 Additional financial reporting support and loan portfolio management is provided to the CDBG program from the City's Finance Department. Local Objective: T2G3.3 Priority: High

Planning Administration $14,299 On-going staff support for planning activities and department administration. Local Objective: T2G3.3 Priority: High

City Planning $98,215 On-going staff support to assist in the formulation and implementation ofpolicies, plans and programs for guiding the physical, economic and social development, redevelopment and conservation ofthe community and its resources. Local Objective: T2G3.3 Priority: High

Total Planning and Administration $209,245 Contingency 583 Grand Total CDBG Commitment: $ 1,985,061

F:IUsersIATAUKEICDBGIAnnuaIPlanIFY 06106 HOD Action Plan.doc

-252- GENERAL OBLIGATION DEBT

AND

DEBT CAPACITY

-253- -254- City of Dubuque Summary of Bonded Indebtedness· Fiscal Year 2005·2006

Date Net Amount Principal Principal Interest Principal Year of Description of Interest of Outstanding Due Due Outstanding Final Issue Rate Issue June 30, 2005 7/1/05-6/30/06 7/1/05-6/30/06 June 30, 2006 Payment General Obligation Bonds Essential Corporate Purpose 07-01-95 4.7349% 2,000,000 250,000 12,250 (250,000) 2005 Essential Corporate Purpose 1 06-01-00 5.8896% 2,750,000 2,370,000 100,000 143,429 2,270,000 2020 Essential Corporate Purpose 2 11-01-00 5.2215% 6,265,000 5,380,000 240,000 288,663 5,140,000 2020 Essential Corporate Purpose 3 12-27-01 4.6892% 9,500,000 8,830,000 670,000 425,081 8,160,000 2021 Essential Corporate Purpose 3 01-09-02 4,7251% 2,860,000 2,580,000 115,000 121,833 2,465,000 2021 Essential Corporate Purpose 4 04-26-02 4.7348% 1,000,000 905,000 40,000 42,535 865,000 2021 Essential Corporate Purpose 5 12-01-02 3.8187% 2,500,000 2,045,000 140,000 80,543 1,905,000 2017 Essential Corporate Purpose 6 10-15-03 4.2750% 2,110,000 1,925,000 80,000 79,748 1,845,000 2023 Essential Corporate Purpose 8 01-31-05 1,750,000 1,750,000 116,004 75,270 1,633,996 2025 Essential Corporate Purpose 9 07-01-05 2,900,000 192,234 124,730 2,707,766 2025 Essential Corporate Purpose 10 07-01-05 1,100,000 22,456 80,000 1,077,544 2025 Total General Obligation Bonds 34,735,000 25,785,000 1,965,694 1,474,080 27,819,306

Revenue Bonds Parking - 5th Street RamP 04-01-98 4.6854 2,515,000 1,150,000 200,000 62,525 950,000 2010 Total Revenue Bonds 2,515,000 1,150,000 200,000 62,525 950,000

I Tax Increment ~ C.TI Advanced Data Comm Properties 04-18-99 6.0% 900,000 580,778 89,206 38,881 491,572 2011 C.TI I Cartegraph (Horizon/Ducarte,LLC) 12-01-99 8.8% 360,000 237,033 34,818 23,182 202,215 2011 Eagle Window (0110 A, LLC) 02-15-00 9.1% 3,168,538 2,493,010 245,483 243,803 2,247,527 2015 Vessel Systems 12-30-03 8.0% 140,000 140,000 11,200 140,000 2012 Dbq Industrial Center West 07-01-05 7,176,000 330,000 338,383 6,837,617 2025 Total Tax Increment Bonds 11,744,538 3,450,821 699,507 317,065 9,918,931 Adams Company TIF (Note 7) 02-13-04 4.25% 500,000 454,545 45,455 21,250 409,090 2015 Total Tax Increment 12,244,538 3,905,366 744,962 338,315 10,328,021

Other loans· Revenue Backed Water Line To Site B 07-01-97 Internal Loan 377,354 414,146 36,793 22,778 377,354 2012

Total Other Lns-Rev Backed 377,354 414,146 36,793 22,778 377,354

Total City Indebtedness 49,871,892 31,254,512 2,947,448 1,897,698 39,474,681

NOTES: 1 Parking revenue-backed G.O. issue

2 $5.6M TIF revenue backed G.O. issue (Parking Ramp) and $665,000 Airport hangers rental backed G.O. issue. 3 America's River Project 7 Projected Interest Rate & Interest and Principal Payments 4 Downtown TIF backed G.O. issue (Main Street Project). 8 Anticipated Stormwater Debt to be issued after Jan 2005 - estimated principal and interest payments 5 Water revenue-backed G.O. issue (Water Main & Water Tower) 9 Anticipated Stormwater Debt to be issued after July 2005 - estimated principal and interest payments 6 Stormwater backed G.O. Issue 10 Anticipated Parking Debt to be issued after July 2005 - estimated principal and interest payments STATUTORY DEBT CAPACITY FISCAL YEAR 2005·2006 BUDGET RECOMMENDATION

The Iowa Constitution (Article XI, Section 3) stipulates that the debt of a community may not exceed five percent of the Actual Assessed Value of Taxable Property within the city or town.

Only General Obligations of the City are included as indebtedness under the statutory debt limit.

January 1, 2003 January 1, 2004 FY 2005 FY 2006

REAL PROPERTY ASSESSED VALUE $2,533,467,320 $2,657,022,327 Less Veterans' Exemption (7,419,112) (7,207,058) Less Agricultural Land Exemption (2,188,123) (2,112,610) I I'.) U'1 0) I Subtotal $2,523,860,085 $2,647,702,659

UTILITIES ASSESSED VALUE 82,062,918 106,562,116

TOTAL TAXABLE PROPERTY $2,605,923,003 $2,754,264,775

DEBT CAPACITY

June 30, 2005 June 30, 2006

STATUTORY DEBT $130,296,150 $137,713,239

Less Outstanding G.O. Debt (25,785,000) (27,819,306)

STATUTORY DEBT CAPACITY $104,511,150 $109,893,933 CAPITAL BUDGET

-257- -258- FY 2006 CIP Message Page 1

CITY OF DUBUQUE, IOWA

MEMORANDUM

TO: The Honorable Mayor and City Council Members

FROM: Michael C. Van Milligen, City Manager

SUBJECT: Submission of Fiscal Year 2006-2010 Capital Improvement Program (CIP)

~ The Fiscal Year 2006-2010 Capital Improvement Program (CIP) is hereby submitted for your review, modification and approval. State law requires c:.Tl .c.r that a five-year CIP be adopted by the City Council after a public hearing. It is recommended that the required CIP public hearing be held at the same time as the public hearing on the Fiscal Year 2006 Operating Budget.

This budget recommendation reflects the current Iowa Supreme Court ruling on gaming tax, which found in favor of the ORA. Also, this budget reflects revenues to the City from a newly negotiated lease with the Dubuque Racing Association and includes the expanded gaming at Dubuque Greyhound Park and Casino, which was previously approved by the Iowa Racing and Gaming Commission.

The CIP, as the plan for the City's physical development effort, attempts to address a variety of needs, which the City must meet if it is to maintain its physical facilities, meet its service commitments and provide for its future development. The CIP recommendation reflects the City's comprehensive plan and the goals and priorities established by the City Council.

As of June 30,2005, the available estimated construction fund balances will be $1,245,326 and will provide funding for CIPs over the next five years. The capital improvement-related draw down of balances reflects Street Construction Funds (71 percent) with Parking, Airport Construction and General Fund making up the balance of (29 percent). FY 2006 CIP Message Page 2

Capital improvement activities have been established in the City's budget to separate CIP projects and project expense from operating expense (Le., Storm Sewer Capital Improvement Activity, Street Capital Improvement Activity, Park Capital Improvement Activity).

OVERVIEW - FISCAL YEAR 2006 - 2010 CAPITAL IMPROVEMENT PROGRAM

The recommended Fiscal Year 2006-2010 Capital Improvement Program totals $199,443,502 divided into six program areas. The following table summarizes expenditures for each program by year.

RECOMMENDED FISCAL YEAR 2006-2010 CIP CAPITAL IMPROVEMENT PROGRAM

5 YEAR PERCENT I PROGRAM FY 2005-2006 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 TOTAL OF TOTAL I',) 0'> a I Public Safety 473,500 1,111,436 977,120 521,500 560,500 3,644,056 1.8%

Public Works 17,681,410 25,382,360 31,859,518 22,384,739 12,942,872 110,250,899 55.3%

Culture & Recreation 2,505,310 2,265,097 2,784,590 2,237,210 2,474,000 12,266,207 6.2%

Community & Economic Dev!. 9,708,673 2,252,000 3,212,150 1,410,000 1,191,000 17,773,823 8.9%

General Government 581,597 352,041 273,106 309,655 186,400 1,702,799 0.9%

Business Type 12,549,989 9,899,158 10,967,603 11,629,815 8,759,153 53,805,718 27.0%

TOTAL 43,500,479 41 262,092 50074,087 38,492,919 26,113,925 199,443,502 100.00% FY 2006 CIP Message Page 3

FISCAL YEAR 2006 - 2010 HIGHLIGHTS

Highlights of the Fiscal Year 2006-2010 CIP will be summarized by City Council's long-range goals and Fiscal Year 2006 priorities.

DUBUQUE 2010 CITY COUNCIL GOALS Improved Connectivity: Transportation and Telecommunications Network 1. The recommended CIP includes the following projects and major initiatives that address the transportation issues facing the City of Dubuque: # Implementation of three-phased development plan for the new Airport Terminal facility being built Fiscal Years 2009 and beyond (page 207) with design in Fiscal Year 2007 ($1,000,000, page 209) and right of way acquisition ($1,413,000, page 207) scheduled,for Fiscal Year 2006. In last year's capital program, construction was anticipated in Fiscal Years 2006-2009. ~ # Small T-Hangar Replacement in FY 2006 ($80,000, page 188) Storage Equipment Bldg/Terminal Security (fiscal year 2006, $625,000, 0)...... I page 189), Airport Master Drainage Study ($75,000, page 190), Terminal Frontage Road Rehab ($48,600, page 191) and Airport Entrance Road Beautification ($12,000, page 187). # Annual street program totaling $14,096,885 over the five-year period (page 293). # Southwest Arterial design, right-of-way acquisition and construction over the five-year period ($58,218,000, page 295) in addition to $12,358,486 previously budgeted in FY 05. # Dowell bar retrofit for Chavanelle Drive ($575,000 in Fiscal Years 2008 and 2009, page 300). # Charter Street Extension design and ROW Fiscal Year 2010 ($975,000, page 302) with construction beginning beyond Fiscal Year 2010. # Utility relocations related to the new US 20 bridge in Fiscal Year 2008 ($2,650,000, page 310). # Traffic signal projects totaling $2,020,000, including interconnect conduit replacement downtown (page 304), signal controller replacement program (page 305), mast arm retrofit (page 303), signal intersection reconstruction (page 306) and traffic signal fiber optic network program (page 323). # Intermodal Facility Feasibility StUdy and design for the Port of Dubuque in Fiscal Year 2006 ($1,100,000, page 409) # Fiber Optics to Fire Stations in Fiscal Years 2006 - 2008 ($577,520, page 6). # Fiber Optics to subdivisions in Fiscal Years 2006-2010 ($1,125,000, page 321). FY 2006 CIP Message Page 4

Planned and Managed Growth

2. Several projects have been included in the five year period to address the need for planned and managed growth including: # Comprehensive Sanitary Sewer Master Plan from Fiscal Year 2006 and 2007 ($240,000, page 228). # Sanitary Sewer Internal Lines into New Developments - Revolving Loan Fund program ($250,000 in fiscal years 2006-2010 page 217) and Internal Water Mains into New Development - Revolving Loan Fund Program ($250,000 in fiscal years 2006-2010 page 344) and water lines ($460,000 in fiscal years 2006-2007, page 350). # Sanitary Sewer Extensions to Annexed Areas ($400,000 in fiscal years 2007 - 2010, page 240). # Analysis of Water Pollution Control Plant capacity and processes in FY 2008 ($65,000, page 376). # Annexation Study and Implementation - Sanitary Sewer ($800,000 in fiscal years 2008-2009 page 241) and water lines ($580,000 in fiscal years 2008-2009 page 357) and West End Annexation ($1,525,000 in fiscal years page 354) # Annexation Middle Road sewer extension ($276,000 page 227) in Fiscal Years 2006-2007. # South Fork Interceptor Extension in FY 2008 ($55,000, page 237). # Storm Water Management Plan Implementation over next five years including Bee Branch Creek Restoration ($19,841,856, pages 261 ... 263, 280, 286 and 291) # Storm Water Extensions/Improvements ($506,346, annual program, page 250). # Charter Street Extension into the Port of Dubuque to provide a second, unimpeded access road ($975,000 FY 10, page 302). # Southwest Arterial design, right-of-way acquisition and construction over the five-year period ($58,218,000, page 295) in addition to $12,358,486 previously budgeted in FY 05. # Water Main Extensions to New Developments ($745,000, page 353). # Water Line to Dubuque Industrial Center West in Fiscal Years 2006-2007 ($460,000, page 350) from Chavenelle Road west to McGraw­ Hill location. # Design for Roosevelt Road from Peru Road to Orchard Drive Water Main Extension and Water Tower In Fiscal Year 2009 and 2010 ($325,000, page 360). # Acquisition of the logging property in the Port of Dubuque from Dubuque Initiatives in Fiscal Year 2008 ($1,987,150, page 408). FY 2006 CIP Message Page 5

# Dubuque Industrial Center West Third Addition in Fiscal Years 2006-2007 ($8,520,000, page 404). # Development of a new airport terminal facility in Fiscal Years 2009 and beyond ($9,615,126, page 209). # Major park improvements including Waterworks park, Pyatigorsk Park, Marshall Park, Comiskey Park, Miller Riverview Park and Westbrook Park in Fiscal Year 2006 ($2,358,310 pages 20,78,80,82 and 120 - 122).

Diverse, Strong Dubuque Economy

3. Funds for economic development activities total over $12,416,450 during the five-year CIP period. A job creation project, using UDAG repayments and CDBG funds is recommended to provide loans and grants as incentives for new and existing businesses to add jobs ($469,300 over the five years, page 402). The existing Community Development Block Grant programs for Economic Development Loans, Commercial and Industrial Building Rehabilitation and Downtown Loan Pool are recommended for continuation ($300,000 over five years, pages 405).

Funds continue to be provided for improvements to the City's industrial parks. The construction of Dubuque Industrial Center West 3rd Addition is recommended in fiscal years 2006 and 2007 ($8,520,000, page 404). The recommended CIP continues to place development of the parcel and the road ahead of the South Seigert Farm development. The South Seigert Road has been land banked. The Bergfeld Recreation Area Trail is planned for Fiscal Year 2006 ($655,000, page 19) and additional development of the Bergfeld Recreation Area ($245,750) is included in FY 2006 (page 18).

Vision Iowa projects continue to be scheduled in the Capital Improvement Program to meet the City's commitment for matching funds and are indicated in the Table of Contents with an "*".

Parking system improvements will continue to provide the capacity needed to meet the expansion plans for businesses in the downtown area. Fiscal Year 2006 includes major repairs to Iowa Street and Locust Street ramps ($1,433,000, pages 415 & 416). The annual Downtown Rehab Loan program ($840,000, page 403), Town Clock Amenities project in Fiscal Year 2010 ($150,000, page 301), Five Flags Civic Center th improvements in Fiscal Years 2006 - 2007 ($1,200,000, page 138), Historic Main Street Sidewalks - 1st Street through 5 Street in Fiscal Year FY 2006 CIP Message Page 6

2006 ($562,000, page 298), Pedestrian-scale signage for downtown and the Port of Dubuque ($25,000, page 338), Historic District Public Improvement Program ($500,000, Fiscal Years 2006 - 2010, page 438), and paint, repair, and renovate the Town Clock in Fiscal Years 2006 and 2007 ($195,250, page 91), are all projects that will help maintain a viable downtown.

Riverfront Development 4. This goal is addressed in several projects that are part of the America's River project. The City's portion of America's River project includes: # Port of Dubuque Phase IV Stormwater Project ($95,000 FY 2006, page 270 ). # Five Flags Civic Center renovation ($1,200,000 in Fiscal Years 2006-2007, page 138). # Five Flags Theater exterior tuckpointing and stage improvements ($215,000 in fiscal year 2006, pages 143-145). # Existing parking lot modifications at the Port of Dubuque ($440,000 in Fiscal Year 2006, page 341). I 0) # Additional Tourism signage in Downtown ($25,000 in Fiscal Year 2009, page 338) '".j::>. I # Waterworks Park ($1,595,000 in Fiscal Years2006 - 2007, page 120). # Pyatigorsk Park Development in Fiscal Year 2006 ($178,000, page 121) # Downtown Master Plan Implementation ($60,000 Fiscal Year 2006, page 433; $65,000 in Fiscal Year 2009 & 2010, page 440)

In addition to these America's River projects, additional riverfront development projects include: # Riverfront 2000 Plan Implementation Strategies ($125,000, page 437). # Maintenance and Dredging of Harbor Areas ($750,000, page 331). # Leasehold Improvements ($125,000, page 328). # Additional parking lots at Port of Dubuque (Fiscal Year 2008-2009 1,000,000, page 337). # Port of Dubuque Development Standards Implementation assistance program (annual program, $150,000 page 407). # Port of Dubuque existing parking lot improvements ($440,000 Fiscal Year 2006, page 341). # Transient boat docks on Main Channel (Fiscal Year 2010, $2,000,000, page 339) FY 2006 CIP Message Page 7

Partnering for a Better Dubuque 5. The City continues to partner with the Greater Dubuque Development Corporation, Chamber of Commerce, and local utilities to ensure the resources are available to meet the current and future needs of employers and citizens. The partners monitor telecommunications opportunities and capabilities to better help us meet those needs and a telecommunications feasibility study is underway in the current fiscal year to develop a strategy for meeting those needs. The Geographic Information System that is utilized by staff and various City utilities and businesses as a tool for improving communication and productivity ($235,000, page 444) includes new aerial photography and completion of the City's downtown fiber loop.

A partnership with the Dubuque Community School District will create a new Downtown Neighborhood Resource Center to be constructed as part of the new Downtown Prescott School ($250,000, page 443) I ~ ~ Fiscal Year 2007 includes the purchase of a new simulator for the Fire Training Center ($365,000, page 12). CJ'1 I

DUBUQUE 2006 CITY COUNCIL POLICY AGENDA

Southwest Arterial Funding (Highway 32) - Top Priority 1. This goal is being addressed over several fiscal years and is shown as the Southwest Arterial design, right-of-way acquisition and construction over the five-year period ($58,218,000, page 295) in addition to $12,358,486 previously budgeted in FY 05.

OpportUNITY Iowa Participation - Top Priority 2. A major new initiative in Fiscal Year 2006 involves the exploration of a communication utility fund. The City has already begun strategically placing fiber optic conduit and will continue in the Fiber Optics to subdivisions project ($1,125,000 in Fiscal Years 2006-2010, page 321).

Storm Water Project: Bee Branch Creek Restoration - Top Priority 3. This goal is being addressed through the Bee Branch Creek Restoration capital project ($16,778,617 in Fiscal Years 2006 -2010, page 261), FY 2006 CIP Message Page 8

Street Improvement Program and Funding - Top Priority 4. Annual Street Program funding for street reconstruction in FY 2006 ($4,095,770, pages 293,294,297,298,308,309,311 and 312) and $2,565,497 in street overlays in FY 2006 (shown as part of the operating budget) and street related improvements for economic development activities ( including $2,517,1480f DICW 3rd Addtiion, page 404).

Art's Policy and Funding - Top Priority 5. This priority is being addressed in the operating budget as a improvement package recommended for $200,000 in funding.

East-West Corridor Study - High Priority 6. This goal is being addressed through the alternate EastlWest corridor study of collector streets in FY 2006 ($50,000, page 296) I "-> 0') 0') I Air Service and Enplanement Strategy - High Priority 7. Land Acquisition ($1,413,000 Fiscal Year 2007, page 207) and Terminal Design ($1,000,000 in Fiscal Year 2007, page 209).

National Pollution Discharge Elimination System (NPDES) Stormwater Approval and Erosion Policy - High Priority 8. This goal is being addressed through the NPDES capital project ($552,243 in fiscal years 2006 -2010, page 254),

Annexation Study and Policy Direction - High Priority 9. This goal is being addressed through capital projects in sewer and water (sewer $800,000 in Fiscal years 2008-2009, page 241 and water $580,000 in Fiscal Years 2008-2009, page 357)

Newly Annexed Areas: Plan, Zone and Service - High Priority 10. This goal is being addressed through West End Annexation Study and Implementation ($1,525,000, page 354 and Sanitary Sewer project ($276,000, page 227) in addition to FY 05 budget of $138,000. FY 2006 CIP Message Page 9

Water and Sewer Service to New Developments in Growth Areas - High Priority 11. This goal is being addressed through Sanitary Sewer Internal Lines into New Developments -Revolving Loan Fund program ($250,000 in Fiscal Years 2006-2010, page 217), Annexation Sanitary Sewer extension ($400,000, Fiscal Years 2007-2010, page 240), Internal Water Mains into New Development - Revolving Loan Fund Program ($250,000 in Fiscal Years 2006-2010 page 344) and water lines ($460,000 in Fiscal Years 2006-2007, page 350).

Property Maintenance Cases - High Priority 12. This goal is being addressed through the problem properties management capital project ($50,000 in Fiscal Years 2006 -2010, page 429),

The City Council also identified projects that were previously on the priority list but whose implementation has already begun and I . ~ therefore these projects are now a part of the Dubuque 2006 Management Agenda. These represent short-term projects for the City I Manager and City of Dubuque staff and have previously been budgeted in Fiscal Year 2005 or prior:

Mediacom Franchise Agreement; Zoning Ordinance: Update; Adams Company Relocation Completion; Collective Bargaining Negotiations; Incident Tracking System; Healthcare Cost Containment Strategy and Action; Federal Strategy; Dubuque Industrial Center West, Phase III; Gaming Agreement: Protect City's interests; Star Brewery Completion; Waterworks Park/Pyatigorsk Park and State Strategy.

RECOMMENDED SOURCE OF FUNDS The Fiscal Year 2006-2010 CIP presents a financialplan and continues to reflect no General Obligation Bond borrowing that is payable from general fund property taxes. It is anticipated that other borrowing can and will be avoided by using Road Use Tax Funds and anticipated future ORA annual distributions of operating surplus.

In addition, these other important points are called to your attention about the recommended source of funds: FY 2006 CIP Message Page 10

1. The current revenue amount of $1 ,599,382 during the five-year period represents $129,600 in golf funds for improvements to the Bunker Hill Golf Course, $75,000 in sidewalk liens, $297,850 from the Water Fund for advances from the General Fund for industrial park related utility extensions, $174,000 rental rehab loan repayments, $602,932 in loan repayments to the Downtown Loan Pool, and $250,000 in sewer revenue from lot sales in new developments.

2. Water revenue represents a portion of the monthly water bill that goes for maintenance, repair, replacement and improvement of the Eagle Point Water Plant and water distribution system on a pay-as-you-go basis for all projects except the major extensions. The annual payment to the depreciation fund in Fiscal Year 2005 was $1,038,888. The recommended Fiscal Year 2006 - 2010 CIP anticipates $999,087 in Fiscal Year 2006, $1,180,938 in Fiscal Year 2007, $1,267,438 in Fiscal Year 2008, $1,374,312 in Fiscal Year 2009, and $1,390,737 in Fiscal Year 2010. I I'.) 0') 00 I 3. Sewer revenue represents a portion of the monthly sewer bill that goes for the maintenance, repair, replacement and improvement of the Water Pollution Control Plant; lift stations, and sewer lines on a pay-as-you-go basis. The annual payment to the depreciation fund in Fiscal Year 2005 was $1,249,249. The recommended Fiscal Year 2006-2010 CIP anticipates $1,244,456 in Fiscal Year 2006, $1,331,080 in Fiscal Year 2007, $1,452,315 in Fiscal Year 2008, $1,573,550 in Fiscal Year 2009 and $1,649,550 in Fiscal Year 2010. G.O. Bond sales are anticipated in FY 2007 ($850,000), Fiscal Year 2008 ($400,000) and Fiscal Year 2009 ($400,000). The debt service will be paid from sewer fees and offset by reduced payments to Depreciation (Construction Fund).

4. Parking revenue represents three primary sources: (a) the balance of prior year depreciation funds set aside for the maintenance and repair of the four parking ramps; (b) future payments to the depreciation fund for repair and maintenance of the parking system ($200,000 in Fiscal Years 2006-2010); and (c) interest income. In FY 2006 a new G.O. Bond issue is being proposed to pay for major improvements on the Iowa and Locust ramps for $1.1 million in Fiscal Year 2006; and $700,000 in Fiscal Year 2009. The associated debt service payment for FY 06 of $102,456 will be abated using ORA gaming revenue (to be repaid in FY 09 from parking revenue). Debt payments for FY 07-10 will be paid from the Greater Downtown TIF. This will require a change from the past policy of requesting only 75% of the increment, to requesting 100% FY 2006 CIP Message Page 11

of the Greater Downtown TIF increment. When the 5th Street ramp revenue bond is paid off in FY 10, the parking fund will assume debt service payments on the remaining 15 years for the major ramp repair bond issue.

5. The stormwater management plan continues to include multiple funding sources to support the projects outlined in the Stormwater Management Plan as well as provide enhanced maintenance for the Stormwater system citywide. Financing the cost of the $38,694,949 Drainage Basin Master Plan will take a combination of revenues from the Dubuque Racing Association and an increase in the monthly Stormwater Fee. The impact on the Stormwater Fee is further complicated by the fact that the Dubuque Racing Association did not receive a back tax payment from the State of Iowa when their lawsuit was settled. The DRA funds and the Stormwater Fee revenues would be used to retire general obligation debt, a variance from previous funding plans. Debt is being used so this project can be completed in a reasonable time-frame, while the costs are spread over a long period of time. The City will also continue to pursue federal grants...... ,I C) co I The recommended Stormwater Fee to implement the program to protect over 1,150 Dubuque properties from stormwater flooding is to leave the current $1.29 per month fee in place until the end of this fiscal year. At the beginning of Fiscal Year 2006, July 1, 2005, the monthly fee would rise to $1.79. This increase to $1.79 has been mentioned in the past as the impact of not receiving a backtax payment from the State of Iowa when the DRA lawsuit against the State was settled. At the beginning of Fiscal Year 2007, July 1,2006, the monthly fee would rise to $2.00. The fee would then rise 25¢ a year until Fiscal Year 2013, when it would reach $3.50 a month, and continue at that rate until Fiscal Year 2032. These funding projections assume that approximately $35 million of DRA revenues will be dedicated to implementation of the plan. It also assumes that federal funding received for the Julien Dubuque Bridge expansion will be approved to partially fund city utility relocations.

6. The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 20 percent of the proceeds would be used for: (a) the upkeep of City-owned property such as sidewalks, steps, storm sewers, walks, curbs, traffic signals and signs, bridges, and buildings and facilities; (b) transit equipment such as buses; (c) riverfront and wetland developments; and (d) economic development projects. This portion of the Sales and Services Tax shows up on the CIP Source of Funds Summary as "Sales Tax (20%)" totals $8,507,862 and represents 4.27 percent of the total CIP. FY 2006 elP Message Page 12

7. G.O. bond issues of $1 ,650,000 in Fiscal Years 2007":2009 are anticipated for sanitary sewer projects, $21,225,000 in Fiscal Years 2006-2010 for stormwater projects and $1,800,000 in Fiscal Years 2006 & 2009 for major ramp improvements. Debt service on sanitary sewer improvements will be paid from user fees, debt service on stormwater improvements will be paid from stormwater fees and ORA funding and parking ramp improvements debt service payment for FY 06 of $102,456 will be abated using ORA gaming revenue (to be repaid in FY 09 from parking revenue). Parking ramp debt payments for FY 07-10 will be paid from the Greater Downtown TIF. When the 5th Street ramp revenue bond is paid off in FY 10, the parking fund will assume debt service payments on the remaining 15 years for the major ramp repair bond issue.

8. The recommended Fiscal year 2006 - 2010 CIP anticipates that Community Development Block Grant (CDBG) funds will be continued throughout the five-year period despite a reduction in funding from $1,481,000 in FY 05 to $1,398,731 in FY 06 from the Department of Housing and Urban Development. The figure also includes rehabilitation loan repayments generated by the Housing and Community I ~ Development Department of $2,765,000. o I 9. A total of $390,000 in HOME grant funds are anticipated in Fiscal Years 2006, 2007 and 2009. The local match of $40,000 comes from rental rehab loan repayments, which are also used to supplement the Community Development Block Grant funded rehab programs.

10. UDAG obligations will be funded using General Fund for amounts over the UDAG loan repayments revenue received and repayment from General Fund to UDAG for the purchase of the Brewery. Beginning in FY 2011 a balloon payment of $1.2 million will replenish the UDAG fund.

11. Federal Aviation Administration (FAA) funding of $13,236,156 provides 95 percent match on most airfield related improvements. The Fiscal Year 2006-2010 budget includes readying a site (land acquisition, design, utilities locations and other site work) for a new terminal facility.

12. Passenger Facility Charge funds of $1,334,732 over the five-year period provide a source of funding for Airport related projects and can be used as the local match on FAA funded projects. FY 2006 CIP Message Page 13

13. The Federal Transit Administration (FTA) funding of $1,087,478 provides for the federal share of an intermodal facility feasibility study and paratransi~ bus replacement.

14. ISTEA Enhancement funding of $7,000,000 is anticipated for the Southwest Arterial ($7,000,000).

15. Federal Funds of $2,220.000 will be requested for utility relocation costs associated with the new Iowa/Illinois bridge.

16. Road Use Tax Funds of $5,023,281 represents the balance of annual payments not required for support of the operating budget and funds that had been reserved to finance high priority transportation projects.

I !:::: 17. State funding includes $58,884,000 in IDOT-FHWA - RISE funding for the Southwest Arterial over the five-year period ($58,218,000, page 295 ...... I in addition to $12,358,486 previously budgeted in FY 05) and $1,250,000 in RISE funds for Dubuque Industrial Center West Chavenelle Road project.

18. State Airport funding of $80,000 is anticipated over the five-year program.

19. The other state assistance represents a trail grant for the Dodge Street hike/bike trail ($292,600) and $50,000 in FY 06 for Whitewater Bridge Creek relocation.

20. ORA payments represent 37.28 percent of the projected gaming taxes, rent, and admissions from the race track, slots and riverboat operations ($10,332,150) over the five-year period and a declining percent of projected estimated surplus distributions beginning in 2008 ($20,411,046) over the five-year period. To the extent that there is any revenue shortfall in future years, capital projects will be eliminated or deferred. ORA distribution revenue projections are discounted consistent with the adopted budget guidelines by 5% in FY 2008, 10% in FY 2009 and 15% in FY 2010. It should be further noted that the share of ORA gaming receipts going into the operating budget again reflects the change from a FY 2006 CIP Message Page 14

25/75 split between capital and operating budgets to a 37.28/62.72 split. This split is modified from the original recommendation of a 35/65 split in the Policy Guidelines. This is due to an increase in the projection of ORA gaming revenue. As a result, the City is able to increase the split used in the capital budget from 35% to 37.28% and decrease the amount used in the operating budget from 65% to 62.72%. No ORA distribution funds go into the operating budget. This is consistent with the guidelines.

21. From fiscal years 2007-2009, $3,329,000 in DRA revenues, which include taxes and rents (including expanded machines from 600 to 1,000 at Greyhound Park and Casino), and admissions from the racetrack, slots and riverboat operation, are committed to the Stormwater Implementation Plan.

22. Tax Increment Financing (TIF) funds are anticipated receipts from the west side industrial park, which are committed towards abatement of the I N rd -...J 20 year G.O. Bond issue for Dubuque Industrial Center West 3 addition and Chavanelle Road extension project, thereby delaying payback to N I the general fund for prior year development costs.

23. Industrial park land sales revenue is revenue generated by projected land sales in the City's industrial parks and is used to recoup the development costs for each park. FY 2006 and 2007 land sales of $920,000 are projected in the Dubuque Industrial Center West TIF district and the revenue will be used towards the Dubuque Industrial Center West (DICW) 3rd Addition and Chavanelle road extension project. FY 2007 $106,000 in DrCW land sale revenue is reimbursing the general fund for prior year development costs.

24. Private contributions represents the non-City share of the cost of several projects including private participation, fund raising, loans, grants and future resource allocation of City funds; Hawthorne Street Water Works Park was budgeted to be paid without receiving private participation, in order to meet the Vision Iowa completion schedule. However, the City is pursuing options for private funding for this project. Four Mounds Foundation fund raising for property acquisition ($505,000 in Fiscal Year 2008); and County participation in Police file server replacements ($20,000 in FY 2006). FY 2006 CIP Message Page 15

25. The local option Sales and Services Tax approved by the voters on February 2, 1988, provided that 30 percent of the proceeds would be used to: (a) reduce street special assessments by at least 75 percent; and (b) maintain and repair streets. This portion of the Sales and Services

Tax shows up on the CIP Source of Funds Summary as "Sales Tax/Street Projects (30 percent)" and totals $12,761,792, or 6.40 percent of the total CIP.

26. Special Assessments represent that portion of street and sanitary sewer improvement projects anticipated to be assessed to benefiting property owners. The $4,052,450 amount breaks down: (a) $2,621,950 (64.7 percent) for street special assessments, and (b) $1,430,500 (35.3 percent) for sanitary sewer special assessments.

The $2,621,950 represents the total street project special assessment amount. The remaining portion is provided by road use tax, sales tax proceeds, state, or federal funds. FY 2006 CIP Message Page 16

CIP FORMAT The format for the Fiscal Year 2006-2010 CIP is substantially the same as the Fiscal Year 2005-2009 CIP adopted by the City Council on March 3, 2004. A separate page is provided for each recommended project. The project page first identifies the department, program, project title, account code (consisting of program number, department number, fund and capital project number), and total project cost. The project page then shows any funds expended for the project prior to Fiscal Year 2005 and the estimated project expense in Fiscal Year 2005. In Section A of the project form entitled "Expenditure Items", project costs are shown by major expenditure item (Le., Design and Engineering, Land and Right-of-Way Purchase, Construction and Other Expense). In Section B, entitled "Project Financing", the project funding is presented by major revenue source (Le., General Fund, Sales Tax Fund, WaterDepreciation Fund, Sanitary Sewer Construction Fund, Road Use Tax Fund). In Section C, entitled "Impact­ Operations," the dollar impact on operations in terms of greater or lesser operating costs and/or greater or lesser revenue is provided when available. r!., ...... t' Next, there is a narrative section, which provides a description of the project, a justification for the project and, where appropriate, how it relates to other projects or plans. A small map is provided in many cases to further identify the location of the project.

The recommended projects are presented in the CIP document in program order (Le., Public Safety, Public Works, Culture and Recreation, Community and Economic Development, General Government, and Business Type). A tab is provided to help locate the various program sections in the CIP. The table of contents in the front of this document reflects the order, funding source and recommended budget amount for each project by year. The far right hand column shows the page number of each project. FY 2006 CIP Message Page 17

CONCLUSION The Capital Improvement Program represents the City of Dubuque's commitment to a maintenance and physical development plan for the next five years. The first year of the five-year CIP goes into the budget for next year and deserves the most attention. As you know, the CIP is updated each year so that City Council will have an opportunity next year to change Fiscal year 2007 through Fiscal Year 2010 projects, as well as to add projects for Fiscal Year 2011.

As is the case every year, all Capital Improvement requests were not able to be included in the five year CIP. For example, requests for new items such as the Flow Riders at Flora and Sutton Pool ($1.4 million) and the painting of the Eagle Point Park tennis courts ($20,500) were not included. Also, we were not able to fully fund a portion of existing projects such as Usha Park Development ($367,000 of a $517,000 budget was not funded), Usha Skate Park ($300,000) and Town Clock Plaza reconstruction and amenities ($127,500 of a $1,275,000 budget).

~ The recommended CIP is the product of the hard work of a large number of people. It begins with department and division managers and their staff 0'1 I who prepared and updated the CIP requests. It extends to Boards and Commissions who review staff's recommendations and make modifications and establish priorities.

I wish to express my thanks to all who were involved in preparing the Fiscal Year 2006-2010 version of the City's Capital Improvement Program. Special thanks go to BUdget Director Dawn Lang, Assistant City Manager Cindy Steinhauser, Office Manager Juanita Hilkin, and Secretary Kevin Firnstahl. I am proud of the work done by City staff and the end result. I hope after you have had an opportunity to review this document that you feel it is responsive to your priorities. -276- CIP APPENDIX

To finance the recommended CIP projects, a variety of funding sources are used. The following table shows the source of funds for each year of the five year CIP.

SOURCE OF FUNDS FOR RECOMMENDED FISCAL YEARS 2006-2010 CIP

USES OF FUNDS IN CAPITAL BUDGET FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PERCENT

Current Revenue 294,570 339,303 264,203 322,303 309,003 1,529,382 0.77% Refuse Collection 128,165 304,150 171,630 186,450 318,800 1,109,195 0.56% Water Utility Fund 846,343 1,375,950 1,193,750 1,524,500 1,217,100 6,157,643 3.09% Landfill Fund 6,400 5,400 1,000 12,800 0.01% Parking Enterprise Fund 411,424 77,400 261,100 185,047 262,300 1,197,271 0.60% Internal Service Funds-City Garage 2,700 3,700 500 6,900 0.00% Stormwater Utility Fees 420,204 (171,626) 32,398 (669,494) (903,965) (1,292,483) -0.65% Cable TV 5,780 24,354 4,000 3,500 37,634 0.02% Sanitary Sewer Utility 1,701,945 1,344,680 1,525,725 1,627,200 1,665,505 7,865,055 3.94%

Current Revenue-Utility/Enterprise 3,808,431 3,294,211 3,461,906 3,185,106 2,873,743 16,623,397 8.33%

Sales Tax 20% 1,431,000 1,127,420 1,726,516 1,780,912 1,787,996 7,853,844 3.94% General Fund Balance 179,280 (140,570) 140,430 (9,570) (19,570) 150,000 0.08% Street Construction/RUTF Fund Balance 898,478 470,778 87,303 6,039 (33,309) 1,429,289 0.72% GO Bonds-Sewer Fund Abated 850,000 400,000 400,000 1,650,000 0.83% GO Bonds-Stormwater Abated Debt 2,900,000 3,200,000 5,700,000 5,200,000 4,225,000 21,225,000 10.64% GO Bonds--DICW TIF Revenue Abated Debt 7,176,000 7,176,000 3.60% GO Bonds-Parking Abated (Yr 1 ORA Lease Abated) 1,100,000 700,000 1,800,000 0.90% lAirport Construction Fund Balance 9,750 9,750 0.00% Total Construction 13,694,508 5,507,628 8,054,249 8,077,381 5,960,117 41,293,883 20.70%

Community Development Funds 846,933 856,448 877,270 840,234 859,346 4,280,231 2.15% FAA Total 665,000 2,327,350 2,797,125 3,088,128 4,358,555 13,236,158 6.64% PFC Revenue 31,250 785,650 147,217 141,217 229,398 1,334,732 0.67% Federal Transit Administration 892,000 96,532 98,946 1,087,478 0.55% Federal Funds-Utility Relocates Rei to New Bridge 2,220,000 2,220,000 1.11% Federal Funds-Marine/Docks Related 1,500,000 1,500,000 0.75% Federal--ISTEA Funds 2,333,000 1,334,000 3,667,000 1.84% Total Federal 2,435,183 6,398,980 7,375,612 4,168,525 6,947,299 27,325,599 13.70% USES OF FUNDS IN CAPITAL BUDGET FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PERCENT

HOME Funds 160,000 160,000 320,000 0.16% State Airport Funds 80,000 80,000 0.04% Road Use Tax 1,057,104 1,023,106 1,001,237 941,506 964,814 4,987,767 2.50% RISE Grant-Southwest Arterial & Chavenelle Rd 11,300,000 13,333,000 18,834,000 12,384,000 55,851,000 28.00% Other State Funding-lOOT & Trails Grants 292,600 292,600 0.15% Total State 12,437,104 14,516,106 19,835,237 13,485,506 1,257,414 61,531,367 30.85%

ORA-Gaming Receipts 3,818,039 3,078,435 1,988,310 1,110,066 337,300 10,332,150 5.18% ORA-Distribution of Surplus 3,860,557 3,736,167 4,512,624 4,174,248 4,127,450 20,411,046 10.23% ORA-Gaming Receipts-Years 1-5 to Stormwater 859,000 1,140,000 1,330,000 3,329,000 1.67% Total ORA 7,678,596 6,814,602 7,359,934 6,424,314 5,794,750 34,072,196 17.08%

I Greater Downtown TIF Payments 59,267 59,267 59,267 59,267 237,068 0.12% ~ -.I County Farm TIF Payments co 0 0.00% I Total TIF Funds 0 59,267 59,267 59,267 59,267 237,068 0.12%

Private Participation 20,000 505,000 525,000 0.26% Total Private 20,000 505,000 0 0 525,000 0.26%

Ind. Parks Land Sales-County Farm Site 114,750 906,000 1,020,750 0.51% Total Land Sales 114,750 906,000 0 0 0 1,020,750 0.51%

Sales Tax 30% 2,356,173 2,450,420 2,548,436 2,650,374 2,756,389 12,761,792 6.40% Total Sales Tax 30% 2,356,173 2,450,420 2,548,436 2,650,374 2,756,389 12,761,792 6.40% 0 Special Assessments 955,734 1,314,878 874,446 442,446 464,946 4,052,450 2.03% Total Spec. Assessment 955,734 1,314,878 874,446 442,446 464,946 4,052,450 2.03%

GRANO TOTAL 43,500,479 41,262,092 50,074,087 38,492,919 26,113,925 199,443,502 100.00% City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

POLICE DEPARTMENT Public Safety In-Car Video Recorders General Fund $ 20,000 $ 20,000 $ 20,000 $ - $ - $ 60,000 1 Dubuque Police Firearms Range General Fund $ 27,500 $ - $ - $ - $ - $ 27,500 2 Police Administrative Office Remodel General Fund $ - $ 98,936 $ - $ - $ - $ 98,936 3 Mobile Data Computers General Fund $ - $ - $ - $ 136,500 $ - $ 136,500 4 FIRE DEPARTMENT Public Safety Intersection Pre-emption System ORA Dist./General Fund $ 65,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 125,000 5 Fiber Optic System for Fire Stations ORA Dist./General Fund $ 53,900 $ 124,000 $ 399,620 $ - $ - $ 577,520 6 Interior Upgrades - Fire Headquarters General Fund $ 36,000 $ - $ - $ - $ - $ 36,000 8 Interior & Ext. Improve. to Station #5 General Fund $ 26,900 $ - $ - $ - $ - $ 26,900 9 Interior Improve. Station #6 General Fund $ 14,200 $ - $ - $ - $ - $ 14,200 10 Pumper Replacement ORA Dist./General Fund $ . $ 228,500 $ - $ 240,000 $ 245,500 $ 714,000 11 Training Center Fire Simulator General Fund $ - $ 365,000 $ - $ - $ - $ 365,000 12 Elevator-Fire Headquarters General Fund $ - $ - $ 422,500 $ - $ - $ 422,500 13 aULDING SERVICES ~ublic Safety I City Hall Maintenance Sales Tax 20%/General Fd $ 140,000 $ 200,000 $ 50,000 $ 50,000 $ 50,000 $ .490,000 14 Grand River Center Maintenance ORA Distribution $ 50,000 $ 60,000 $ 70,000 $ 80,000 $ 250,000 $ 510,000 15 Building Services Office Remodel ORA Distribution $ 40,000 $ - $ - $ - $ - $ 40,000 16 LEISURE SERVICES PARK DIVISION Culture and Recreation Create a Pet Park - Southern Park General Fund $ 35,000 $ - $ - $ - $ - $ 35,000 17 Bergfeld Recreation Area - Develop TIF Backed GO Bond $ 245,750 $ - $ - $ - $ - $ 245,750 18 Bergfeld Recreation Area - Trail Dev. TIF Backed GO Bond $ 655,000 $ - $ - $ - $ - $ 655,000 19 Westbrook Park Development General Fund $ 150,000 $ - $ - $ - $ - $ 150,000 20 Riley Park Development ORA Distribution $ - $ 107,000 $ - $ - $ - $ 107,000 21 Welu Park Development ORA Distribution $ - $ - $ 58,000 $ - $ - $ 58,000 22 Granger Creek Nature Trail ORA Distribution $ - $ - $ - $ 193,000 $ - $ 193,000 23 Eagle Valley Park Development ORA Distribution $ - $ - $ - $ 150,000 $ - $ 150,000 24 Usha Park Development ORA Distribution $ - $ - $ - $ - $ 150,000 $ 150,000· 25 Eagle Point Park Stone Work Sales Tax 20% $ 28,000 $ - $ - $ - $ - $ 28,000 26 Repair/Roof Veranda Rooms General Fund $ 20,000 $ - $ - $ - $ - $ 20,000 27 Open Air Pavilion ORA Distribution $ 38,500 $ - $ - $. - $ - $ 38,500 28 Walkway Over Fish Pond ORA Distribution $ 8,000 $ - $ - $ - $ - $ 8,000 29 Replace Roofs on Log Cabin etc. General Fund $ 44,100 $ - $ - $ - $ - $ 44,100 30 Redo Entry Road & Replace Toll Booth ORA Distribution $ - $ 150,000 $ - $ - $ - $ 150,000 31 City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

Storm Sewer Work General Fund $ - $ 56,250 $ - $ - $ - $ 56,250 32 Replace Windows in Terrace Room General Fund $ - $ 14,000 $ - $ - $ - $ 14,000 33 Repair Concrete and Replace Iron General Fund $ - $ 24,750 $ - $ - $ - $ 24,750 34 Railing at Riverfront East Porch Repair Concrete in Shiras Memorial DRA Distribution $ - $ 35,000 $ - $ - $ - $ 35,000 35 Overlay Main Road Sales Tax 20% $ - $ - $ 127,000 $ - $ - $ 127,000 36 Replace Wading Pool DRA Distribution $ - $ - $ - $ 226,500 $ - $ 226,500 37 Replace Fence General Fund $ - $ - $ - $ - $ 7,000 $ 7,000 38 Replace Overlook Sidewalk DRA Distribution $ - $ - $ - $ - $ 79,600 $ 79,600 39 Electric Work in Riverfront Pavilion General Fund $ - $ - $ - $ - $ 4,500 $ 4,500 40 Accessible Walkway to the Log Cabin DRA Distribution $ - $ - $ - $ - $ 270,600 $ 270,600 41 Eagle Point Park and Flora Park Replace Street Light Fixtures General Fund $ 18,500 $ - $ - $ - $ - $ 18,500 42 Flora Park Overlay Back Lot of Forestry Building DRA Distribution $ 6,300 $ - $ - $ - $ - $ 6,300 43 Storm Sewer Extension, Rear of Park General Fund $ 87,900 $ - $ - $ - $ - $ 87,900 44 I Renovate Horseshoe Courts Area DRA Distribution $ 45,250 45 !',) - $ $ - $ - $ - $ 45,250 00 Overlay Main Roadway DRA Distribution $ $ 47,500 $ $ $ 46 0 - - - - $ 47,500 I Landscape Entrances DRA Distribution $ $ 12,300 $ $ - $ $ 12,300 47 Roof Brick Open Air Pavilion General Fund $ - $ 8,000 $ - $ - $ - $ 8,000 48 Awning on Rest Room Building DRA Distribution $ - $ 10,000 $ - $ - $ - $ 10,000 49 Slattery Center - Replace HVAC General Fund $ - $ 14,700 $ - $ - $ - $ 14,700 50 Renovate Basketball Court DRA Distribution $ - $ - $ 25,000 $ - $ - $ 25,000 51 Overlay Volleyball Courts Parking Lot DRA Distribution $ - $ - $ 45,000 $ - $ - $ 45,000 52 Develop Croquet Court DRA Distribution $ - $ - $ - $ - $ 51,000 $ 51,000 53 Construct Handball Court DRA Distribution $ - $ - $ - $ - $ 100,000 $ 100,000 54 Murphy Park/McAleece Park Replace Rest Room Partitions General Fund $ 18,600 $ - $ - $ - $ - $ 18,600 55 Murphy Park Asphalt Overlay Main Road Sales Tax 20% $ - $ 103,000 $ - $ - $ - $ 103,000 56 Repair Concrete in Open Air Pavilion General Fund $ - $ 5,700 $ - $ - $ - $ 5,700 57 Replace Entrance Doors General Fund $ - $ - $ - $ 7,000 $ - $ 7,000 58 Concrete Repairs at Shelter and Pavilio Sales Tax 20% $ - $ - $ - $ - $ 13,500 $ 13,500 59 Replace Windows in the Enclosed Sales Tax 20% $ - $ - $ - $ - $ 7,300 $ 7,300 60 Shelter Pavilion Murphy Park - Storm Sewer Repair General Fund $ - $ - $ - $ - $ 5,000 $ 5,000 61 McAleece Park Play Equipment DRA Distribution $ 40,000 $ - $ - $ - $ - $ 40,000 62 Raise Fence on Field III General Fund $ 13,000 $ - $ - $ - $ - $ 13,000 63 Shade Umbrellas DRA Distribution $ - $ - $ 13,500 $ - $ - $ 13,500 64 BMX Bike Track DRA Distribution $ - $ - $ 30,000 $ - $ - $ 30,000 65 City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAMIDEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

Re-side Building DRA Distribution $ - $ - $ 12,600 $ - $ - $ 12,600 66 Repair 10-Row Bleachers DRA Distribution $ - $ - $ 6,000 $ - $ - $ 6,000 67 Irrigate Soccer Fields General Fund $ - $ - $ 28,000 $ - $ - $ 28,000 68 Storage Building DRA Distribution $ - $ - $ - $ 17,000 $ - $ 17,000 69 Veteran's Memorial Park Replace Bleachers DRA Distribution $ 10,500 $ - $ - $ - $ - $ 10,500 70 Replace Rest Room Building DRA Distribution $ - $ - $ 84,000 $ - $ - $ 84,000 71 Replace Exterior Fence DRA Distribution $ - $ - $ 20,500 $ - $ - $ 20,500 72 Construct Shade Structure DRA Distribution $ - $ - $ 22,000 $ - $ - $ 22,000 73 Replace Tennis Courts DRA Distribution $ - $ - $ - $ - $ 183,500 $ 183,500 74 Renovate Ball Fields DRA Distribution $ - $ - $ - $ - $ 191,250 $ 191,250 75 Allison Henderson Replace Roof DRA Distribution $ - $ - $ 7,500 $ - $ - $ 7,500 76 Replace Sanitary Sewer Line DRA Distribution $ - $ - $ 13,500 $ - $ - $ 13,500 77 Marshall Park Replace Rest Room Building DRA Distribution $ 150,000 $ - $ - $ - $ - $ 150,000 78 I I'V Paint and Repair Veterans' Mem Pool General Fund $ - $ - $ - $ 20,000 $ - $ 20,000 79 00 --l. Comiskey Park I Replace Tennis Courts General Fund $ 97,600 $ - $ - $ - $ - $ 97,600 80 Valentine Park Screening to June Drive General Fund $ 6,250 $ - $ - $ - $ - $ 6,250 81 Miller-Riverview Park Phase II Campsite Rewiring DRA Distribution $ 50,000 $ - $ - $ - $ - $ 50,000 82 Four Mounds Road Improvements DRA Distribution $ - $ 164,000 $ - $ - $ - $ 164,000 83 Land Acquisition Private Fund Raising $ - $ - $ 505,000 $ 253,000 $ - $ 758,000 84 DRA Distribution Washington Park Renovation ORA Distribution $ 187,710 $ 50,000 $ - $ - $ - $ 237,710 85 Waller-Cooper Park Renovation ORA Distribution $ - $ 45,000 $ - $ - $ - $ 45,000 86 Harvest View Park Play Unit DRA Distribution $ - $ 50,000 $ - $ - $ - $ 50,000 87 Southern Avenue Park Play Equipment ORA Distribution $ - $ - $ 35,000 $ - $ - $ 35,000 88 Skate Park Rebuild Ramps General Fund $ - $ - $ - $ 30,000 $ - $ 30,000 89 Cleveland Park Renovation DRA Distribution $ - $ - $ - $ 283,500 $ - $ 283,500 90 Town Clock City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

Paint, Repair and Renovate Clock DRA Distribution $ 72,250 $ 123,000 $ - $ - $ - $ 195,250 91 Playgrounds Middle School - Purchase DRA Distribution $ 10,000 $ - $ - $ - $ - $ 10,000 92 two Scoreboards Fulton - Play Equipment DRA Distribution $ 85,000 $ - $ - $ - $ - $ 85,000 93 Prescott School - DRA Distribution $ - $ 11,500 $ - $ - $ - $ 11,500 94 Baskets and Scoreboard Playground Improvements DRA Distribution $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 20,000 $ 80,000 95 Washington Middle School - DRA Distribution $ - $ - $ - $ - $ 4,100 $ 4,100 96 Replace Four Baskets General Park Maintenance Highway 20 - Water On Corners General Fund $ 5,000 $ - $ - $ - $ - $ 5,000 97 Ham House - Paint General Fund $ 34,000 $ - $ - $ - $ - $ 34,000 98 Forestry Bldg - Replace Htng System General Fund $ 18,000 $ - $ - $ - $ - $ 18,000 99 Forestry Bldg - Replace General Fund $ 12,500 $ - $ - $ - $ - $ 12,500 100 Wiring and Plumbing Retaining Walls DRA Distribution $ 25,000 $ 50,000 $ - $ - $ - $ 75,000 101 I Renovation of Park Sidewalks Sales Tax 20% $ 7,500 7,500 7,500 7,500 7,500 I'.:> $ $ $ $ $ 37,500 102 00 Street Tree Program Sales Tax 20% 10,000 10,000 15,000 I'.:> $ $ $ $ 15,000 $ 15,000 $ 65,000 103 I Highway 20 - Mulch Roses General Fund $ 12,000 $ - $ - $ 13,000 $ - $ 25,000 104 All Parks - Renovate Water Systems DRA Dist./General Fund $ 100,000 $ - $ - $ 300,000 $ - $ 400,000 105 Tree Nursery - Install Sidewalk DRA Distribution $ - $ 10,800 $ - $ - $ - $ 10,800 106 Replace Park Signs DRA Distribution $ - $ 38,800 $ - $ - $ - $ 38,800 107 Bunker Hill Bldg - Replace Windows General Fund $ - $ 18,000 $ - $ - $ - $ 18,000 108 Maintenance Headquarters - DRA Distribution $ - $ 13,500 $ 14,000 $ - $ - $ 27,500 109 Replace Lexon on Greenhouse Replace Flag Poles in Major Parks DRA Distribution $ - $ - $ 42,200 $ - $ - $ 42,200 110 Ham House Museum - Drainage General Fund $ - $ - $ 11,500 $ - $ - $ 11,500 111 Bunker Hill Golf Course Remodel Main Lobby Area DRA Distribution $ - $ - $ 17,000 $ - $ - $ 17,000 112 Overlay Main Road and Parking Lot Sales Tax 20% $ - $ - $ 150,000 $ - $ - $ 150,000 113 Replace Pro Shop Roof Sales Tax 20% $ - $ - $ 7,100 $ - $ - $ 7,100 114 Maintenance Hdqrts - Replace Window: General Fund $ - $ - $ - $ 17,000 $ - $ 17,000 115 Slattery Center - Replace Roof Sales Tax 20% $ - $ - $ - $ - $ 20,250 $ 20,250 116 Maintenance Hdqrts - Widen Driveway General Fund $ - $ - $ - $ - $ 17,500 $ 17,500 117 Forestry Building - Install Siding Sales Tax 20% $ - $ - $ - $ - $ 19,700 $ 19,700 118 Tree Nursery Renovation General Fund $ - $ - $ - $ - $ 9,000 $ 9,000 119 Business Type General Fund $ 1,125,000 $ 470,000 $ - $ - $ - $ 1,595,000 120 DRA Distribution $ 178,000 $ - $ - $ - $ - $ 178,000 121 General Fund $ 250,000 $ - $ - $ - $ - $ 250,000 122 City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

CIVIC CENTER DIVISION Culture and Recreation Sidewalk Replacement DRA Dist./General Fund $ - $ 40,000 $ 40,000 $ - $ 100,000 $ 180,000 123 Replace Portable Chairs DRA Distribution $ - $ - $ 170,000 $ - $ - $ 170,000 124 Replace Tables Sales Tax 20% $ - $ - $ 90,000 $ - $ - $ 90,000 125 Arena - Replace Boiler Sales Tax 20% $ - $ - $ 201,000 $ - $ - $ 201,000 126 Replace Promenade Roof Sales Tax 20% $ - $ - $ 70,000 $ - $ - $ 70,000 127 Arena Heating/Air Condo Replace. DRA Dist./Sales Tax 20% $ - $ - $ 500,000 $ - $ - $ 500,000 128 Replace Roll-Up Doors, DRA Distribution $ - $ - $ - $ 3,500 $ - $ 3,500 129 Meeting Room Concessions Replace Walk-In Cooler ORA Distribution $ - $ - $ - $ 13,000 $ - $ 13,000 130 Replace Center's P.A. System General Fund $ - $ - $ - $ - $ 11,500 $ 11,500 131 Replace Marquee Sales Tax 20% $ - $ - $ - $ - $ 45,000 $ 45,000 132 Paint Arena Ceiling Sales Tax 20% $ - $ - $ - $ - $ 95,000 $ 95,000 133 Theater Renovations Refurbish Grand and Upright Pianos ORA Distribution $ - $ 40,000 $ - $ - $ - $ 40,000 134 I Theater - Orchestra Pit Lift ' DRA Distribution $ $ 177,000 $ $ 135 !',) - - - $ - $ 177,000 00 Theater - Paint Exterior Metal Sales Tax 20% $ $ $ $ $ 15,000 136 eN - - - - $ 15,000 I Theater - Refurbish Brass Sales Tax 20% $ - $ - $ - $ - $ 10,000 $ 10,000 137 Business Type ORA Dist./Sales Tax 20% $ 600,000 $ 600,000 $ - $ - $ - $ 1,200,000 138 ORA Distribution $ 10,000 $ - $ - $ - $ - $ 10,000 139 Sales Tax 20% $ 62,000 $ - $ - $ - $ - $ 62,000 140 ORA Distribution $ 69,000 $ - $ - $ - $ - $ 69,000 141 ORA Distribution $ 45,000 $ - $ - $ - $ - $ 45,000 142 ORA Distribution $ 111,500 $ - $ - $ - $ - $ 111,500 143 ORA Distribution $ 13,500 $ - $ - $ - $ - $ 13,500 144 ORA Distribution $ 90,000 $ - $ - $ - $ - $ 90,000 145

RECREATION DIVISION Culture and Recreation Swimming Pools Replace Recirculation System Valves General Fund $ 4,000 $ 4,000 $ - $ - $ - $ 8,000 146 Renovate Electrical Panels Sales Tax 20%/General Fd $ 4,000 $ 8,000 $ - $ - $ - $ 12,000 147 and Components Paint Pool Tanks General Fund $ 35,000 $ 35,000 $ - $ - $ - $ 70,000 148 Construct 3 Shade Umbrellas &Fabric ORA Distribution $ 4,000 $ 8,000 $ - $ - $ - $ 12,000 149 Replace Doors/Frames Sales Tax 20% $ 8,000 $ - $ - $ - $ 8,800 $ 16,800 150 Recaulk Swimming Pool Decks General Fund $ - $ 6,000 $ - $ - $ 5,000 $ 11,000 151 Expansion of Fence DRA Distribution $ - $ 20,000 $ - $ - $ - $ 20,000 152 Paint Filter Tanks ORA Distribution $ - $ 7,000 $ - $ - $ - $ 7,000 153 City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006·2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

Resurface Parking Lot Entrance Area ORA Distribution $ - $ - $ 30,000 $ - $ - $ 30,000 154 Shade Umbrellas ORA Distribution $ - $ - $ 15,000 $ - $ - $ 15,000 155 Renovate Recirculation Pumps General Fund $ - $ - $ 15,000 $ - $ - $ 15,000 156 Repaint Metal Lockers ORA Distribution $ - $ - $ 5,000 $ - $ - $ 5,000 157 Repaint Filter Tank Interior General Fund $ - $ - $ - $ 40,000 $ - $ 40,000 158 Repaint Water Slide Support Structure General Fund $ - $ - $ - $ 25,000 $ - $ 25,000 159 Relevel Gutters Sales Tax 20% $ - $ - $ - $ - $ 17,400 $ 17,400 160 Replace Sand Playground ORA Distribution $ - $ - $ - $ - $ 80,000 $ 80,000 161 Replace Entrance Doors Sales Tax 20% $ - $ - $ - $ - $ 8,000 $ 8,000 162 Concrete Repairs to Deck General Fund $ - $ - $ - $ - $ 5,000 $ 5,000 163 Replace Two Diving Boards General Fund $ - $ - $ - $ - $ 5,000 $ 5,000 164 Bunker Hill Golf Course Tree Planting Program Golf Fees $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 5,000 165 Renovation ORA Dist./General Fund $ - $ 50,000 $ 317,790 $ 376,210 $ 756,000 $ 1,500,000 166 Decorative Roof Fence Golf Fees $ - $ 3,000 $ - $ - $ - $ 3,000 167 Maintenance Building Doors Golf Fees $ - $ 5,000 $ - $ - $ - $ 5,000 168 I I'\.) Replace Maintenance Bldg Heaters Golf Fees $ - $ - $ 4,100 $ - $ - $ 4,100 169 0:> "J:>. Replace Trash Baskets Golf Fees $ - $ - $ 3,000 $ $ - $ 3,000 170 I - Tee Signs Golf Fees $ - $ - $ 10,800 $ - $ - $ 10,800 171 Construct Cart Paths Golf Fees $ - $ - $ - $ 10,000 $ 10,000 $ 20,000 172 Cart and Storage Shed Floors Golf Fees $ - $ - $ - $ 9,000 $ - $ 9,000 173 Top Dressing Bin Golf Fees $ - $ - $ . $ 6,200 $ - $ 6,200 174 Pond Renovation Golf Fees $ - $ - $ - $ 10,800 $ - $ 10,800 175 Maintenance Building Addition Golf Fees $ - $ - $ - $ - $ 50,000 $ 50,000 176 LIBRARY Culture and Recreation Library Parking General Fund $ 85,000 $ - $ - $ - $ - $ 85,000 177 Self-Check Machine General Fund $ 24,500 $ - $ - $ - $ - $ 24,500 178 New Circulation & Information Desks General Fund $ 22,850 $ - $ - $ - $ - $ 22,850 179 Library Renovation Project General Fund $ - $ 195,000 $ - $ - $ - $ 195,000 180 Heating, Ventilating &Air Conditioning General Fund $ - $ 384,375 $ - $ - $ - $ 384,375 181 Window Repair/Replacement General Fund $ - $ 20,500 $ - $ - $ - $ 20,500 182 Audiovisual Shelving and Listening/ General Fund $ - $ 20,672 $ - $ - $ - $ 20,672 183 Viewing Station Children's Activity Paint Interior Library Sales Tax 20% $ - $ - $ - $ 60,000 $ - $ 60,000 184 Carpeting Replacement Sales Tax 20% $ - $ - $ - $ 135,000 $ - $ 135,000 185 Roof Replacement on Original Building Sales Tax 20% $ - $ - $ - $ - $ 75,000 $ 75,000 186 AIRPORT Public Works Entrance Road Beautification General Fund $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ - $ 48,000 187 City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006·2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

Small T-Hangar Replace & Removal State Airport Funds $ 80,000 $ - $ - $ - $ - $ 80,000 188 Storage Equipment Bldgl FAA Entitlement/PFC $ 625,000 $ - $ - $ - $ - $ 625,000 189 Terminal Security Access Airport Master Drainage Study FAA Entitlement/ $ 75,000 $ - $ - $ - $ - $ 75,000 190 Airport Construction Fd Terminal Frontage Road Rehab Sales Tax 20% $ 48,600 $ - $ - $ - $ - $ 48,600 191 Rehab Parking Lots Sales Tax 20% $ 86,400 $ - $ - $ - $ - $ 86,400 192 Paint Quonset and Corporate Hangars Airport Construction Fd $ 6,000 $ - $ - $ - $ - $ 6,000 193 Fuel Containment ORA Distribution $ 100,000 $ - $ - $ - $ - $ 100,000 194 Ramp Repair Quonset/Corporate General Fund $ - $ 7,780 $ - $ - $ - $ 7,780 195 Hangars Repaint Markings of 13/31 Sales Tax 20% $ - $ 20,000 $ - $ - $ - $ 20,000 196 and Remove Existing Field Drain Replacements Sales Tax 20% $ - $ 86,500 $ - $ - $ - $ 86,500 197 Roof Repair and Replacement ORA Distribution $ - $ 37,800 $ - $ - $ - $ 37,800 198 Fire Truck Replacement FAA Discretionary/PFC $ - $ 700,000 $ - $ - $ - $ 700,000 199 Extend General Aviation Ramp ORA Distribution $ - $ - $ 54,000 $ - $ - $ 54,000 200 I Chlorine System Update and Replace ORA Distribution I'.:) $ $ 22,000 $ - $ - $ 22,000 201 00c.n Replace Carpeting Administrative Ofs ORA Distribution $ - $ - $ 30,000 $ - $ - $ 30,000 202 I Paint FBO Hangar Complex General Fund $ - $ - $ 20,000 $ - $ - $ 20,000 203 Paint Fuel Farm Tanks General Fund $ - $ - $ - $ 20,000 $ - $ 20,000 204 David Flying Service Hangar Floor General Fund $ - $ - $ - $ 19,500 $ - $ 19,500 205 FBO Hangar Heating System Replace General Fund $ - $ - $ - $ - $ 22,000 $ 22,000 206 Terminal--Land Acquisition FAA Entitie/Discret Fdl $ - $ 1,413,000 $ - $ - $ - $ 1,413,000 207 Airport Construction Fd Terminal--Design FAA Discretionaryl $ - $ 1,000,000 $ - $ - $ - $ 1,000,000 209 Passenger Facility Charge Terminal--Runway 31 Parallel FAA Discretionary/PFC $ - $ - $ 2,944,342 $ - $ - $ 2,944,342 210 and Connecting Taxiways Utility-Future Growth Terminal Area ORA Distribution $ - $ - $ - $ 472,953 $ - $ 472,953 211 Terminal--Utility Improvement Related ORA Distribution $ - $ - $ - $ 47,805 $ - $ 47,805 212 Terminal Phase 1A Sitework FAA Entitie/Discret Fdl $ - $ - $ - $ 2,824,345 $ - $ 2,824,345 213 PFC Terminal-cWater Reservoir FAA/General Fund $ - $ - $ - $ 450,000 $ - $ 450,000 214 Terminal--Roads and Apron FAA Entitie/Discret Fdl $ - $ - $ - $ - $ 4,587,953 $ 4,587,953 215 PFC ENGINEERING DEPARTMENT SANITARY SEWER Business Type Sanitary Sewer Maintenance/Repairs General Sanitary Sewer Repairs Sanitary Sewer Const Fd $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 216 Sanitary Sewer Internal Main - New Sanitary Sewer Const Fdl $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 217 Developments - Revolving Loan Fund Loan Repayments City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

I & I Reduction Program Sanitary Sewer Const Fd $ 55,000 $ 63,000 $ 65,000 $ 70,000 $ 75,000 $ 328,000 218 Lateral Replacement Assistance to Special Assessments/ $ 165,000 $ 165,000 $ 165,000 $ 165,000 $ 165,000 $ 825,000 219 Low/Moderate Income for Street Sanitary Sewer Const Fd Program Projects Sewer Lateral Connection Assist Prgm Sanitary Sewer Const Fd $ 34,500 $ 34,500 $ 34,500 $ 34,500 $ 34,500 $ 172,500 220 Sewer Connections - Assistance to General Fund $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 125,000 221 Low/Moderate-Income Residents for Connection to City Sewer Lateral Replacement Assistance to Sanitary Sewer Const Fd $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 222 Low/Moderate Income for I & I Reduction Sanitary Sewer Manhole Replace Prjct Sanitary Sewer Const Fd $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 223 Interceptor Sewer Clearing &Grubbing Sanitary Sewer Const Fd $ 70,000 $ 65,000 $ 60,000 $ 55,000 $ 55,000 $ 305,000 224 Sanitary Sewer Lining Program Sanitary Sewer Const Fd $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 225 Street Program Related Sanitary Swr Sanitary Sewer Const Fd $ 100,000 $ 105,000 $ 110,000 $ 115,000 $ 120,000 $ 550,000 226 Annexation Middle Road Sanitary Sewer Const Fd $ 138,000 $ 138,000 $ - $ - $ - $ 276,000 227 Comprehensive Sanitary Sewer Sanitary Sewer Const Fd $ 90,000 $ 150,000 $ - $ - $ - $ 240,000 228 I Master Plan ,.", Specific Sanitary Sewer Projects 00 0) Lindberg Terrace and Eagle Street Sanitary Sewer Const Fd 100,000 I $ $ - $ - $ - $ - $ 100,000 229 Sanitary Sewer Replacement Stafford, High Bluff to Lincoln Sanitary Sewer Const Fd $ 28,000 $ - $ - $ - $ - $ 28,000 230 Oak Grove Sanitary Sewer Sanitary Sewer Const Fd/ $ 99,000 $ - $ - $ - $ - $ 99,000 231 Special Assessments Eagle Point Drive Sanitary Sewer Ext Sanitary Sewer Const Fd/ $ - $ 259,000 $ - $ - $ - $ 259,000 232 Special Assessments Laurel Street Sanitary Sewer Sanitary Sewer Const Fd/ $ - $ 237,000 $ - $ - $ - $ 237,000 233 Special Assessments Monroe Street Sanitary Sewer Ext Sanitary Sewer Const Fd/ $ - $ 18,500 $ - $ - $ - $ 18,500 234 Special Assessments Plymouth Court Sanitary Sewer Sanitary Sewer Const Fd $ - $ 47,000 $ - $ - $ - $ 47,000 235 Alley between Rhomberg and Sanitary Sewer Const Fd $ - $ 141,000 $ - $ - $ - $ 141,000 236 Lincoln from Marshall to Hamilton South Fork Sanitary Sewer Interceptor Sanitary Sewer Const Fd $ - $ 110,658 $ - $ - $ - $ 110,658 237 Extension Stewart Street Sanitary Sewer Sanitary Sewer Const Fd $ - $ 32,000 $ - $ - $ - $ 32,000 238 Sunset Ridge Sanitary Sewer Sanitary Sewer Const Fd/ $ - $ 68,000 $ 450,000 $ - $ - $ 518,000 239 Special Assessments Sanitary Sewer External Extensions - Sanitary Sewer Const Fd $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 400,000 240 Annexation Annexation Study and Implementation Sanitary Sewer Const Fd $ - $ - $ 400,000 $ 400,000 $ - $ 800,000 241 Groveland Brunswick to Burden Sanitary Sewer Const Fd $ - $ - $ 54,000 $ - $ - $ 54,000 242 Nightengale Lane Sanitary Sewer Ext Sanitary Sewer Const Fd/ $ - $ - $ 308,000 $ - $ - $ 308,000 243 Special Assessments Southfork Interceptor Sewer Upgrading Sanitary Sewer Const Fd $ - $ - $ 55,000 $ - $ - $ 55,000 244

City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAMIDEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

ORA Distribution $ 95,000 $ - $ - $ - $ - $ 95,000 270 Storm Sewer Cleaning Stormwater Utility $ - $ 52,531 $ - $ 76,875 $ 78,797 $ 208,203 271 Asbury & Bunker General Fund $ - $ 20,700 $ - $ - $ - $ 20,700 272 Clifford-Rosemont General Fund $ - $ 240,000 $ - $ - $ - $ 240,000 273 Goethe/Sheridan Stormwater Const. Fd $ - $ 122,000 $ - $ - $ - $ 122,000 274 Hawthorne-Kerper Stormwater Const. Fd $ - $ 57,000 $ - $ - $ - $ 57,000 275 Kaufmann & Trygg General Fund $ - $ 18,000 $ - $ - $ - $ 18,000 276 Hillcrest at Keyway General Fund $ - $ 32,400 $ - $ - $ - $ 32,400 277 Kaufmann and JFK Stormwater Const. Fd $ - $ 41,000 $ - $ - $ - $ 41,000 278 Kerper Sales Tax 20% $ - $ 76,500 $ - $ - $ - $ 76,500 279 Keyway to Rosemont Channel Improve Stormwater Const. Fd $ - $ 323,067 $ 360,947 $ - $ - $ 684,014 280 Prince Street General Fund $ - $ 54,000 $ - $ - $ - $ 54,000 281 32nd & Grandview Sales Tax 20% $ - $ 40,000 $ - $ - $ - $ 40,000 282 Windsor Avenue ORA Distribution $ - $ 202,800 $ - $ - $ - $ 202,800 283 Northridge Drive Court ORA Distribution $ - $ - $ 103,000 $ - $ - $ 103,000 284 I Rockdale Road Storm Sewer ORA Distribution $ $ 150,000 285 I'V - - $ $ - $ - $ 150,000 CO Reconstruction CO I Rosemont Culvert Improvements Stormwater Cons!. Fd $ - $ - $ 89,409 $ - $ - $ 89,409 286 Woodland General Fund $ - $ - $ 18,000 $ - $ - $ 18,000 287 DodgelTermina Sales Tax 20% $ - $ - $ - $ 288,000 $ - $ 288,000 288 H&W Storm Sewer Stormwater Const. Fd $ - $ - $ - $ 55,000 $ - $ 55,000 289 Kane, Kaufmann and McDonnell Lane ORA Distribution $ - $ - $ - $ 160,000 $ - $ 160,000 290 Rosemont to NW Arterial Stormwater Cons!. Fd $ - $ - $ - $ 150,477 $ - $ 150,477 291 Terminal Street Sales Tax 20% $ - $ - $ - $ 92,000 $ - $ 92,000 292 STREETS Public Works Street Related Improvements Annual Street Program Special Assessments/ $ 2,884,770 $ 3,072,245 $ 2,713,290 $ 2,713,290 $ 2,713,290 $ 14,096,885 293 Sales Tax 30%/Road Use TaxlSTP Fund Street Assessment Assistance Sales Tax 30% $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 294 Southwest Arterial (IA 32) DMATS STP/IDOT $ 10,000,000 $ 15,666,000 $ 20,168,000 $ 12,384,000 $ - $ 58,218,000 295 FHWAIRISE Alternate EasllWest Corridor ORA Distribution $ 50,000 $ - $ - $ - $ - $ 50,000 296 Study of Collector Streets Center Grove/Cedar Cross Inter Sales Tax 30% $ 93,000 $ - $ - $ - $ - $ 93,000 297 Main Street Sidewalk Improvements - Special Assessments/ $ 562,000 $ - $ - $ - $ - $ 562,000 298 Locust St Connector to Fifth Street Road Use Tax Fund Main Street Streetscape Improve - ' Special Assessments/ $ - $ 859,537 $ - $ - $ - $ 859,537 299 9th to 14th Street Street Construction City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

Dowell Bar Retrofit for Chavenelle Dr Sales Tax 30%! $ - $ - $ 453,500 $ 121,500 $ - $ 575,000 300 Road Use Tax Fund Town Clock Plaza Amenities Special Assessments! $ - $ - $ - $ - $ 150,000 $ 150,000 301 Sales Tax 20% Charter Street Ext to Port of Dubuque Sales Tax 20%/Road $ - $ - $ - $ - $ 975,000 $ 975,000 302 Use Tax/Sales Tax 30% Traffic Signalization, Bridge, Retaining Walls Traffic Signal Mastarm Retrofit Road Use Tax Fund/ $ 110,000 $ 57,500 $ 60,000 $ 62,500 $ 65,000 $ 355,000 303 General Fund Traffic Signal Interconnect Conduit Road Use Tax Fund $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 304 Replacement Traffic Signal Controller Replacement Street Const. Fund/ $ 54,000 $ 56,000 $ 58,000 $ 60,000 $ 62,000 $ 290,000 305 Project Road Use Tax Fund Traffic Signal Intersection Reconst Road Use Tax Fund $ 160,000 $ 170,000 $ 45,000 $ - $ - $ 375,000 306 Signalization Program Street Const. Fund! $ - $ 80,000 $ - $ 85,000 $ - $ 165,000 307 Road Use Tax Fund Bridge Repairs/Maintenance Road Use Tax Fund $ 50,000 $ 10,000 $ 50,000 $ 10,000 $ 50,000 $ 170,000 308 Brunskill Road Bridge Replacement Road Use Tax Fund $ 372,000 $ - $ - $ - $ - $ 372,000 309 I Utility Relocations Related to New Grant Funds-DOT/ !'.) $ - $ - $ 2,650,000 $ - $ - $ 2,650,000 310 00 co Mississippi Bridge Crpssing Storm Sewer Const Fd/ I Sanitary Sewer Const Fd Street Light Replacement Project - General Fund $ 35,000 $ 36,000 $ 37,000 $ 38,000 $ 39,000 $ 185,000 311 City Owned Downtown Streetlight Replacement DRA Distribution $ 89,000 $ 49,000 $ 46,000 $ 46,000 $ - $ 230,000 312 ADA Curb Ramp Construction Prjct CDBG Funds $ 60,760 $ 64,448 $ 67,270 $ 70,234 $ 73,346 $ 336,058 313 Guardrail Replacement Road Use Tax Fund $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 125,000 314 Stone Retaining Walls Road Use Tax Fund $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 600,000 315 Decorative Concrete Maintenance DRA Distribution $ 90,000 $ 60,000 $ 95,000 $ 65,000 $ 100,000 $ 410,000 316 Sidewalks Sidewalk Program Related Curb and Sales Tax 20% $ 117,000 $ 132,600 $ 138,480 $ 144,654 $ 151,137 $ 683,871 317 Catch Basin Replacements Sidewalk Inspection Program - General Fund-Liens $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 75,000 318 Assessable Sidewalk Program - City-Owned Prop Sales Tax 20% $ 98,400 $ 102,320 $ 106,436 $ 110,758 $ 115,296 $ 533,210 319 Washington Park Sidewalks Road Use Tax Fund/ $ 69,000 $ - $ - $ - $ - $ 69,000 320 General Fund Fiber Optic Fiber Optic Conduit - Private DRA Distribution $ 225,000 $ 225,000 $ 225,000 $ 225,000 $ 225,000 $ 1,125,000 321 Subdivisions/Mise Projects Fiber Optic Conduit - Paving Projects DRA Distribution $ 106,480 $ 124,630 $ 145,200 $ 145,200 $ 145,200 $ 666,710 322 Traffic Signal Fiber Optic Network Sales Tax 30% $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 323 Miscellaneous Traffic Signal/Street Lighting Road Use Tax Fund $ 70,000 $ - $ - $ - $ - $ 70,000 324 Maintenance Van

City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAMIDEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

West End Annexation Study and Water Depreciation Fd $ - $ 803,000 $ 430,000 $ 292,000 $ - $ 1,525,000 354 Implementation Paint Pipes In Pump Room Water Depreciation Fd $ - $ 30,000 $ - $ - $ - $ 30,000 355 Seal Walls South Plant CO2 Water Depreciation Fd $ - $ 40,000 $ - $ - $ - $ 40,000 356 Annexation Study and Implementation Water Depreciation Fd $ - $ - $ 80,000 $ 250,000 $ 250,000 $ 580,000 357 Clear Well Reservoirs - Rehab Prgrm Water Depreciation Fd $ - $ - $ 16,000 $ 284,000 $ - $ 300,000 358 Water Line Relocate for New Bridge Federal Funds/ $ - $ - $ 125,000 $ - $ - $ 125,000 359 Water Depreciation Fd Water Tower and Water Main Ext- Water Depreciation Fd/ $ - $ - $ - $ 75,000 $ 250,000 $ 325,000 360 Roosevelt Road from Peru Road to GO Water Bond Orchard Drive Eagle Point Plant Driveway and Water Depreciation Fd $ - $ - $ - $ - $ 30,000 $ 30,000 361 Parking Lot Overlay Bunker Hill Pump Station Water Depreciation Fd $ - $ - $ - $ - $ 50,000 $ 50,000 362 WATER POLLUTION CONTROL Business Type Final Clarifier Replacement Drives Sanitary Sewer Const. Fd $ 53,245 $ 54,575 $ 55,925 $ - $ - $ 163,745 363 I Sandblast and Paint Primary Clarifier Sanitary Sewer Const. Fd $ 18,500 $ 9,500 $ $ 364 I'.:) - - $ - $ 28,000 c.o...... Atomic Absorption Spectrometer Sanitary Sewer Const. Fd $ 55,000 $ - $ - $ - $ - $ 55,000 365 Replacement Furnace for Bar Screen Sanitary Sewer Const. Fd $ 18,200 $ - $ - $ - $ - $ 18,200 366 Building Terminal Street Motor Control Center Sanitary Sewer Const. Fd $ 360,000 $ - $ - $ - $ - $ 360,000 367 and Motor Replacement Rebuild DS705 Centrifuge Sanitary Sewer Const. Fd $ - $ 60,927 $ 62,150 $ - $ - $ 123,077 368 Scroll Assemblies Back Drive Controllers Replacement Sanitary Sewer Const. Fd $ - $ 22,000 $ - $ - $ - $ 22,000 369 for Dry Solids Centrifuges Repair and/or Exchange 02 Plant Sanitary Sewer Const. Fd $ - $ 158,900 $ - $ - $ - $ 158,900 370 Mixers Roadway Light Repair/Replacement Sanitary Sewer Canst. Fd $ - $ 13,420 $ - $ - $ - $ 13,420 371 Painting of SPU Incinerator Room Sanitary Sewer Const. Fd $ - $ 9,200 $ - $ - $ - $ 9,200 372 Replace Sludge and Grease Grinders Sanitary Sewer Const. Fd $ - $ - $ 18,600 $ 19,600 $ - $ 38,200 373 Primary Dome Sealing Sanitary Sewer Const. Fd $ - $ - $ 43,500 $ - $ - $ 43,500 374 Insulated Fiberglass Blend Tank Sanitary Sewer Canst. Fd $ . $ - $ 22,500 $ - $ - $ 22,500 375 Facility Study Sanitary Sewer Const. Fd $ - $ - $ 65,000 $ - $ - $ 65,000 376 Replacement Plant Intercom System Sanitary Sewer Const. Fd $ - $ - $ - $ 18,100 $ - $ 18,100 377 Shower Room Update in SPU and Sanitary Sewer Const. Fd $ - $ - $ - $ 18,000 $ - $ 18,000 378 Administration Buildings Wastewater Plant Road Repair Sanitary Sewer Canst. Fd $ - $ - $ - $ - $ 98,755 $ 98,755 379 OPERATIONS AND MAINTENANCE Public Works Floodwall Post-Flood Repair Program Sales Tax 20% $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 380 Asphalt Milling Program Road Use Tax Fund $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 350,000 381 City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006-2010

PROGRAMIDEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

Curb Ramp Program Road Use Tax Fund $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 100,000 382 Traffic Controller Battery Pack Project Road Use Tax Fund $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 150,000 383 Concrete Street Section Repair Road Use Tax Fund/ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 384 Program Sales Tax 30% Curb Replacement Program Road Use Tax Fund $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 385 Steps, Hand Railings and Wall-Top Sales Tax 20% $ 25,000 $ - $ 25,000 $ - $ 25,000 $ 75,000 386 Fencing Program Two-Way Radio Conversion to Road Use Tax/General $ 173,500 $ - $ - $ - $ - $ 173,500 387 800MHZ System Fd/ Parking Fd/Health- General Fd/Leis Serv.- General FdlWater Fd Shop Air Compressor for New Road Use Tax Fund $ 3,600 $ - $ - $ - $ - $ 3,600 388 Municipal Services Center Truck Lift Replacement for New Road Use Tax/General $ 74,500 $ - $ - $ - $ - $ 74,500 389 Municipal Services Center Fd/Refuse Fee Snow and Ice Control Traffic Signal Road Use Tax Fund $ 15,400 $ - $ - $ - $ - $ 15,400 390 Pre-emption Equipment I Aerial Bucket Truck Road Use Tax Fund $ $ 110,000 $ $ $ 391 ~ - - - - $ 110,000 co Truck Mounted Vacuum St Sweeper Road Use Tax Fund $ $ $ $ 150,000 $ 392 ~ - - - - $ 150,000 I Garage Facility Roof $ - $ - $ - $ 235,000 $ - $ 235,000 393 Garage Wall Repair Sales Tax 20% $ - $ - $ - $ 187,000 $ - $ 187,000 394 Dodge Street Bike Path--Locust Federal/State Grants/x $ - $ - $ - $ - $ 418,000 $ 418,000 395 to Devon ORA Distribution Business Type Solid Waste Collection Vehicles Refuse Collection Fund $ 106,840 $ 299,750 $ 171,130 $ 186,450 $ 316,100 $ 1,080,270 396 Sanitary Sewer Root Foaming Project Sewer Const. Fund $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 75,000 397 Stormwater Ditch Remediation General Fund/ $ 10,000 $ 289,992 $ 296,991 $ 229,166 $ 234,270 $ 1,060,419 398 Stormwater Utility High Pressure JeWacuum Sewer Sanitary Sewer Fund $ 200,000 $ - $ - $ - $ - $ 200,000 399 Cleaning Vehicle Bee Branch Pump Controller Project Stormwater Const. Fund $ 43,642 $ - $ - $ - $ - $ 43,642 400 Sewer Pipeline Inspection Equipment Sanitary Sewer Fund $ - $ 130,000 $ - $ - $ - $ 130,000 401 ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Community and Economic Development CDBG Economic Development Loan Econ Dev Loan Repay/ $ 69,300 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 469,300 402 Program CDBG Grant Downtown Reh Loan Program Loan Repayments $ 120,000 $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 840,000 403 DICW 3rd Addition and Chavanelle Rd GO Bond-TIF Backed/ $ 7,720,000 $ 800,000 $ - $ - $ - $ 8,520,000 404 Ext and Sanitary Sewer to Middle Rd RISE Grant/ORA Dist./ Indstrl Park W Land Sales Commercial/Industrial Bldg Rehab CDBG Grant $ 100,000 $ - $ 100,000 $ - $ 100,000 $ 300,000 405

Cityof Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2006·2010

PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 TOTAL PAGE

HOME Program-Rental Prop. Rehab Home Grant Fd 271/ $ - $ 200,000 $ - $ 200,000 $ - $ 400,000 435 City Match-RRP Funds Housing Trust Fund Iowa Finance Authority/ $ -$ 50,000 $ - $ 50,000 $ - $ 100,000 436 CDSG Grant PLANNING SERVICES Community and Economic Development Riverfront 2000 Plan Implementation ORA Distribution $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 125,000 437 Historic District Public Improvement ORA Distribution $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 438 Downtown Dubuque Master Plan: General Fund $ - $ - $ - $ 25,000 $ 40,000 $ 65,000 440 Implementation CITY MANAGERS OFFICE Community and Economic Development Neighborhood Grants CDSG Grant $ 28,873 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 128,873 442 Downtown Neighborhood Resource ORA Distribution $ 250,000 $ - $ - $ - $ - $ 250,000 443 Center General Government Geographic Information System General Fd/DRA Dis!. $ 205,000 $ 30,000 $ - $ - $ - $ 235,000 444 I~ORMATION SERVICES ~eneral Government I City-Wide Microcomputer and General Fd/Private $ 261,615 $ 267,041 $ 273,106 $ 299,655 $ 186,400 $ 1,287,817 445 Printer Replacements Participation/Road Use Tax/DRA Distl,Cable TV/ Golf GroupWise E-mail and Calendaring DRA Distribution $ 57,382 $ - $ - $ 10,000 $ - $ 67,382 446 Structured Wiring Upgrade ORA Distribution $ 57,600 $ - $ - $ - $ - $ 57,600 447 E-C0n:tmerce Addition to City Website DRA Distribution $ - $ 55,000 $ - $ - $ - $ 55,000 448 Business Type City-Wide Microcomputer and Refuse/Landfill/Sewer/ $ 23,900 $ 11,300 $ 47,000 $ 26,300 $ 28,600 $ 137,100 449 Printer Replacements Water/Parking/Garage Service

GRAND TOTAL $ 43,500,479 $ 41,262,092 $ 50,074,087 $ 38,492,919 $ 26,113,925 $ 199,443,502

Vision Iowa Projects are Highlighted APPENDICES

-295- -296- CITY OF DUBUQUE OVERVIEW OF BUDGETING

INTRODUCTION

The review and adoption of the budget is the single most important thing that a City Council does each year. The budget sets the tempo, capabilities, commitments and direction of the city government for an entire year. It is the yardstick against which the city operations can be evaluated. But what is a budget?

The purpose of this narrative is to identify: a) what a bUdget is; b) why we prepare a budget; c) alternative types of budgets; d) major characteristics of the Dubuque budget system; and e) roles and responsibilities in preparing the annual budget.

WHAT IS A BUDGET?

A budget is several things:

1. The budget is a fiscal plan setting out anticipated revenue and expenditures for accomplishing a variety of services over a given time frame. The fiscal plan includes: a) an explanation of the services, activities, programs and projects to be provided by the City to the citizens; b) the resultant expenditure requirements; and c) the resources available for meeting the expenditure requirements.

2. The budget is a process concerned with the allocation of available resources among alternatives and competing departments, activities and programs. Cities rarely have enough money to be able to appropriate all the funds requested to all departments and activities and, as a result, there is considerable competition for whatever money is available. Budgeting, as a process, is concerned with developing an acceptable mix or balance between costs and services and represents the decisions made with respect to: a) quality and quantity of activities and projects to be undertaken; and b) financing of those activities and projects.

3. The bUdget is a policy document which: a. establishes the authority to spend funds, and levy and collect property taxes; b. represents a commitment to provide a specific level of service within a given amount of resources; and c. establishes criteria (objectives, measures and dollar limits) for evaluating and controlling expenditures, revenue collections and performance. Through the budget, policies are made, put into effect, and controlled.

4. The budget is a legal requirement. State law requires the City Manager to prepare the annual budget and the City Council to adopt the annual budget and certify it to the County Auditor by March 15th of each year preceding the beginning of the fiscal year on July 1st. The budget must be on a program - performance basis and show: a) expenditures for each program; b) income from sources other than property taxes; and -297- c) amount to be raised by the property taxation and the property tax rate expressed in dollars per thousand of assessed value.

The budget must also show comparisons between expenditures in each program and between levels of service.

WHY DO WE BUDGET? WHY IS IT IMPORTANT?

Why do we go through the agony and the work? There are several reasons:

1. To meet the legal requirement.

2. To establish spending and income-raising authority.

3. To establish a work program for the fiscal year (objectives) and present it to the public.

4. To manage and control resources and their use.

5. To assure the proper mix of costs and services.

6~ To assure the most effective and efficient use of available resources.

7. To set the tempo and direction of the city government.

8. To prioritize policies and objectives.

9. To link dollars with results.

ALTERNATIVE TYPES OF BUDGETS

Line-Item Budget

The most commonly used budget format in local government today is the line-item budget. A line­ item budget is one, which allocates money for specific expense items or objects of expenditure without reference to the purpose, activities or program they will serve. This type of budget lists expenditures by such categories as full-time salaries, overtime, office supplies, postage, travel, rental expense, maintenance of buildings and grounds, office furniture and equipment, etc.

The principal advantage of a line-item budget is that it is easy to prepare and facilitates expenditure control. However, this form of budget tells very little about the purposes, activities and programs of the city it serves. For example, it shows the amount of money that has been budgeted for personnel, but it does not show the natureof the services such personnel are to provide. Furthermore, the traditional line-item approach does not show comparative costs and benefits of competing programs, thus making it difficult for the City Council and management to evaluate individual activities and allocate resources. These characteristics limit its usefulness as a device for giving direction and purpose to public service activities and programs.

-298- Program BUdget

Local governments usually spend money to accomplish something more than purchasing goods and services. They are also concerned about programs, missions, or functions. A budget organized on the basis of its intended purpose is called a program bUdget. A program bUdget allocates money to functions or activities rather than to specific items of costs. A municipal budget of this type lists expenditures for such cost categories as protective services, leisure time opportunities, and administration.

Few, if any, budgets are prepared exclusively on a program basis. Instead, program costs are usually broken· into line items.

The primary advantage of a program budget is that it shows the broad goals and purposes for which we are spending money and allows for setting priorities. The disadvantage is that it does not show the level of services that will be produced by the functions for which money has been allocated. This characteristic weakens its value as a tool for managing the quality and quantity of public service programs.

Performance Budgeting

Performance budgeting goes a step further than program budgeting by requiring the breakdown of service into workload or units of performance and the assigning of unit costs. A system of work measurement is used to evaluate productivity and effectiveness.

The principal advantage of the performance type budget is that it shows both the activities of the city and the service levels of those activities and their respective costs. Thus, it can be a useful tool for regulating in a positive way, both the quality and quantity of city services. This characteristic makes the performance type budget the most useful of those types mentioned so far. However, it is also the most difficult to prepare. There are three reasons for this. First, it is difficult to define the units by which the work of the department or an actiVity or program can be measured. Second, even when the work unit can be defined, it may not be easy to establish a system, which will supply a reliable measure of the work output. And third, it requires much thought and study to establish acceptable service levels for various activities and programs.

Zero Base Budgeting

Traditional budgeting, whether line-item or program-oriented, tends to focus on how much you spent last year as a beginning point for budget preparation. That is to say that it is incremental, it adds an increment on top of last year's spending level generally without challenge and without consideration of alternatives or trade-offs.

Zero Base Budgeting (ZBB) is a system whereby each activity or program, regardless of whether it is a new or existing program, must be justified in its entirety each time a new budget is formulated. Rather than using the previous year's budget as a base, ZBB assumes no base; all activities old and new must be explained and justified each year. The agency starts at zero.

ZBS measures the desirability, need and beneficiaries of services as well as the reasonableness of the proposed costs, alternatives to the activity, and trade-offs between partial achievement of goals and the ability to fund all proposed budget expenditures. ZBS accomplishes this by dividing all the proposed activities or services of the governmental body into units of manageable size, subjecting them to detailed examination, and ranking them according to their importance. Revenues are matched against the list of services according to their rank. High-priority services are funded first. If money runs out, the low-priority services are not funded.

-299- The characteristics of ZBB can be summarized as follows:

1. Scrutiny of old or existing activities as closely as new or proposed activities;

2. Reallocation of resourCeS from low-priority activities to high-priority activities;

3. Emphasis on alternatives (levels of expenditures and services and methods of providing services); and

4. Allowance for budget reduction or expansion in a planned, logical manner.

Dubuque Budget Approach

The budget system being utilized by the City of Dubuque incorporates aspects of each of the several budget alternative types discussed here. The major characteristics of our budget system are:

1. It has line items for control and fiscal management purposes.

2. It is organized by program, department and fund.

3. It attempts to identify, analyze, and articulate the fundamental purposes and objectives of the Dubuque City government. This approach is intended to place emphasis upon commitments, accomplishments, and activities performed rather than upon items purchased and to provide for the establishment of priorities.

4. It attempts to identify, quantify, and analyze the demands on and accomplishments of organizational units in terms of established goals, objectives, and purposes. Are we achieving our goals and living up to our promises? This requires the establishment of workload and demand indicators and evaluation criterion. It is performance that counts.

5. It attempts to identify all costs of each department, activity, and program, including capital expenditure, debt service, and employee benefit costs. What does an activity or department really cost?

6. It presents alternative service andfunding levels for all activities in the operating budget. The purpose is to provide the City Council with the widest possible range of alternatives to maximize their opportunity for making policy decisions, assigning priorities and allocating scarce resources to accomplish their policy objectives.

The City's budget approach involves the preparation of two budget documents. The Policy Budget and the Detail Budget. The Policy BUdget defines goals and objectives for all City departments and activities, relates them to cost and resource requirements and attempts to establish measures for evaluating accomplishment. Specific decision packages are developed and included in the Policy Budget for alternative funding and service levels. The Policy Budget emphasizes objectives, accomplishments, and alternative funding and service levels and is intended to keep the attention of the City Council and public on the major policy decisions involving what services the City government will provide, who will pay for them, and the implications of such decisions. The Detail Budget document shows the budget by line item. It provides the line item detail for the Policy Budget and forms a basis for fiscal control once the budget is adopted.

-300- ROLES AND RESPONSIBILITIES

Budget preparation and administration is a shared responsibility between the City Council, City Manager, Finance Department, department manager, division manager, and supervisor. Each plays an important role in the fiscal management system and the quality of and satisfaction derived from the fiscal management system is a direct result of the efforts of the several participants. Lack of attention, failure to follow procedures and/or poor follow through at any level can undermine the best fiscal management system.

Let's look at the roles each plays.

City Council

In a very real sense, budget preparation and administration begins and ends with the City Council. The City Council has the following responsibilities:

1. Establish City goals and major performance objectives.

2. Approve guidelines for preparing the annual operating budget.

3. Establish through adoption of an annual budget what services and the level of services to be provided and how they will be financed.

4. Establish rules for the conduct of the City's fiscal operations.

5. Monitor progress toward achievement of objectives.

6. Require independent audit of fiscal records and transactions.

The City Manager

The City Manager is responsible to the City Council for the day-to-day operation and administration of the City government. In terms of fiscal management, the City Manager has the following responsibilities:

1. Develop policy guidelines for City Council review and adoption.

2. Prepare and submit an annual operating budget and a five-year Capital Improvement Budget premised upon Council guidelines and goals and major performance objectives.

3. Ensure the adopted budget is properly administered.

4. Supervise the performance of all contracts for work to be done by the City.

5. Authorize and direct the purchase of all supplies and materials used by the City.

6. Keep Council fully advised on financial conditions of the City.

7. Submit financial reports to City Council by the 10th of the month following the close of the preceding month. .

8. Establish rules for conduct of fiscal operations for which he is responsible.

-301- Finance Department

The Finance Department becomes an extension of the City Manager's Office for purposes of performing the delegated responsibilities. The responsibilities of the Finance Department include the following:

1. Administer the approved budget on a day-to-day basis to see that funds are being expended for the purposes approved and that all claims are supported by proper documentation.

2. Supervise sale of bond issues.

3. Administer centralized payroll system.

4. Administer centralized purchase order system.

Department Managers, Division Managers, and Supervisors

The critical role in the fiscal management system is performed by department managers and their division managers and supervisors. The fiscal management system will be only as good as they make it. Their role includes:

1. Responsibility for the efficient and effective operation of the activities and tasks under their direction. Line supervisors are expected to control costs and achieve results.

2. Responsibility for preparation of budget requests, which emphasize objectives and service levels as well as traditional line item explanations and justifications for various funding levels and developmentof measures for evaluating progress toward objectives. What is the level of accomplishment, which can be expected from various funding levels, and how do we measure it? It is absolutely essential in our approach to budget preparation that accomplishments, objectives, and estimated costs be established by those in the organization who know the most about it and can be held accountable. Those are the department managers and their division managers and supervisors.

3. Responsibility for recommending and explaining needs and opportunities for service changes; reductions as well as expansions.

4. Responsibility for providing the planned and approved service level within budget limitations.

5. Responsibility for day-to-day department and activity budget administration.

BUDGET CYCLE

The budget cycle is a sequence of events covering the life of a budget from beginning to end. That is from the gleam in the City Manager's eye to the Council acceptance of the independent audit. The budget cycle is approximately twenty-six months long. The critical dates are spelled out in State law: March 15th is when the budget for the following fiscal year must be adopted by the City Council; and JUly 1st as the beginning of the fiscal year.

-302- The budget cycle can be summarized as follows:

Task Responsibility Dates Council begins to formulate negotiation City Manager/Human strategy for collective bargaining Service/City Council April

Staff in worksession identifies accomplishments; future "community"; and recommended actions and policies for City achieving the goals. Manager/Departments July/August

City Council in worksession sets Policy Agenda: Targets, Actions, and Priorities City Council August/September

Five-year projections and draft Policy Guidelines presented to City Council City Manager August/September

City Council sets guidelines City Council August/September

Prepare capital budget instructions, forms, and resource update Budget Office August/September

Prepare capital budget requests Departments August/September

Prepare instructions and forms Budget Office August/September

Public Input Meeting City Manager September

Prepare operating budget requests Departments September/October

Assemble and analyze requests Budget Office October/November

City Manager review and balancing City Manager November/December

Finalize and prepare documents Budget Office December

City Council budget reviews City Council January/February

Public Hearing City Council March

Council adoption City Council March 15th

BUDGET AMENDMENT PROCESS

Budget estimates may be amended and increased as the need arises to permit appropriation and expenditure of unexpended cash balances on hand and unanticipated revenues. Such amendment may be considered and adopted at any time during the fiscal year covered by the budget (but prior to May 31) by filing the amendments and upon publishing them and giving notice of the public hearing in the manner required in the State Code. Within ten days of the decision or order of the City Council, the proposed amendment of the budget is subject to protest, hearing on the protest, appeal to the state appeal board, and review by that body. A local budget must be amended by May 31 of the current fiscal year-to allow time for a protest hearing to be held and a decision to be rendered before June 30. -303- Except as specifically provided elsewhere in the Iowa Administrative Code rules, all appropriation transfers between programs are budget amendments and shall be prepared as provided in Iowa Code section 384.16. The program reference means anyone of the following four major areas of public service that the City Finance Committee requires cities in Iowa to use in defining its program structure: Community Protection, Human Development (Leisure Services), Home and Community Environment, and Administration.

BUDGET ACCOUNTING BASIS

The City's policy is to prepare the annual operating budget for governmental and proprietary fund types on the modified accrual basis. Under the modified accrual basis of accounting, revenues are recorded as they are collected unless susceptible to accrual, i.e., amounts that are measurable and available to finance the City's operations or of a material amount and not received at the normal time of receipt. Available means collectible within the current period or soon enough thereafter to be used to satisfy liabilities of the current period. Significant revenues, which are considered as susceptible to accrual, include property taxes, sales taxes, franchise taxes, interest, and certain state and federal grants and entitlements. Expenditures, other than interest on long­ term debt, are recorded when the liability is incurred.

Budgetary control is maintained at the activity or cost center level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Outstanding encumbrances at fiscal year end are not reported as expenditures, but as reservations of fund balance for subsequent year expenditures, based upon encumbrance appropriation authority carried over.

FUND ACCOUNTING BASIS

The accounts of the City are organized on the basis of funds and groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, equities, revenues and expenditures or expenses. The various funds are grouped by type in the budget. The following fund types are used by the City:

Governmental Fund Types

Governmental funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (other than those in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position. The following are the City's governmental fund types:

• The General Fund is the principal operating fund of the City and accounts for all financial transactions not accounted for in other funds. The general operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are financed through revenues received by the General Fund.

• Special Revenue Funds are used to account for revenues derived from specific taxes, governmental grants, or other revenue sources, which are restricted to finance particular functions or activities of the City. The City's special revenue funds include Road Use Tax, Community Development, UDAG Repayments, Section 8 Housing, Lead Paint Grant, State

-304- Rental Rehab, Cable TV, Special Assessment, Expendable Library Gifts Trust, Tort Liability, Employee Benefits, and TIF funds.

• Debt Service Funds are used to account for the accumulation of resources for, and the payment of, principal, interest, and other related costs of the City's general obligation debt.

• Permanent Funds are used to account for resources that are legally restricted to the extent that only the earnings, and not principal, may be used for purposes that support the reporting of governmental programs. The City's permanent funds include: Lyons Peony Trust and Library Gifts Trusts.

• Capital Improvement Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities.

Proprietary Fund Types

The City also has proprietary fund types, which are different from governmental fund types in that their focus is on the determination of net income or loss. The revenue from these funds is assumed to be adequate to fund the operation of the funds. The City's proprietary funds are as follows:

• Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through use charges or where the periodic determination of net income or loss is deemed appropriate. The City's enterprise funds include Water, Parking, Sewer, Stormwater, Refuse, Transit, and America's River Project.

• The Internal Service Fund accounts for the financing of goods and/or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost reimbursement basis.

-305- KEY TERMS FOR UNDERSTANDING DUBUQUE'S BUDGET SYSTEM

PROGRAM *

A program is a broad-based, homogenous and fundamental area of City government responsibility. Programs are presented as general statements, which define a major purpose of City government. Each program is divided into several departments representing a separate and significant segment of the program of which it is an integral part.

The state budget law requires that the budget be prepared and certified on a program basis.. The City of Dubuque uses the following nine programs:

1. Public Safety 2. Public Works 3. Health pnd Social Services 4. Culture and Recreation 5. Community and Economic Development 6. General Government 7. Debt Service / Capital Projects 8. Business Type 9. Non-Program

* Prior to Fiscal Year 2004, the State of Iowa, City Finance Committee changed the number of programs from 4 to 9 on the expenditure side. The Fiscal Year 2006 Citizen's Guide uses the new 9-program presentation. The budget is certified using the new 9 programs as required by Iowa budget law.

ACTIVITY

An Activity is an organizational unit responsible for a specific and measurable purpose. Every department or division of a department is organized into one or more Activities. The Activity is the unit for defining department and division responsibilities, establishing objectives and evaluating performance. The Activity is the building block, work unit and cost center of the financial management system.

GOAL

A Goal is a desirable end, condition, accomplishment and/or development, the attainment of which may never be fully realized, towards which organizational effort is expended acc9rding to assigned responsibilities, available resources and prepared plans. Goals are attained by means of objectives. Goals are broadly stated and useful in evaluating resource allocation decisions. For example, the Goal for the Park Areas and Maintenance Activity of the Park Division of the Leisure Services Department is to develop and maintain safe, clean, functional and attractive park and recreational facilities to meet the passive and active leisure time needs for all citizens and visitors.

-306- OBJECTIVE

An objective is simply a statement of results to be accomplished during the fiscal year in support of the broader goal. Objectives are major steps towards accomplishing established goals. An Objective should state the result to be achieved or accomplished, the timeframe, the cost and the action step.

ALTERNATIVES

This term means other possible activities or uses of funding besides those already decided upon or being considered. It also suggests the comparison between two or more possible approaches toward fulfilling the same purpose, goal or objective.

ALTERNATIVE BUDGET LEVELS

The Dubuque budget system utilizes a variation of the zero-based budget (ZBB) approach utilizing three alternative funding or budget levels: Maintenance Budget Level, Base Budget Level and Improvement Level.

Each alternative funding level includes specific objectives to be accomplished (service levels to be offered) and associated costs. The budget decision becomes one of selecting alternatives, which maximize the achievements of City objectives according to established priorities within the context of limited resources and City Council policy.

DECISION PACKAGE

A decision package is one or more objectives of an activity, which represents a standalone alternative or decision. For example, the Base Level Increment of a particular activity may have twelve objectives. Some of these objectives may be interrelated and the twelve objectives may represent only four choices or stand alone decision packages. You may have one decision package with one Objective, two decision packages with four objectives each and.one decision package with three objectives. The important thing is that the decision package includes one or more stand alone objectives and is not dependent upon the approval of any other decision package.

PERFORMANCE MEASUREMENT

Performance measures are numbers that transmit some information about the quality or quantity of services provided by the City government. The primary reasons for attempting to measure performance are to:

1. Provide information for making better decisions;

2. Report on progress made toward established objectives;

3. Improve performance, suggest improvements and change priorities; and

4. Serve as an early warning device by indicating problem areas when they first begin to develop.

-307- APPROPRIATION

Appropriation is the legal authorization of the City Council to expend resources from specific sources, for specific purposes, for stated periods of time. An appropriation is established by adoption of the budget or budget amendment after publication and public hearing as required by law.

For purposes of our financial management system, cash refers to money, revenue or fund balances available in the City treasury for financing an activity or project.

ENCUMBRANCES

Encumbrances are obligations in the form of purchase orders, contracts or salary commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved by an accounting entry.

FISCAL YEAR

In Iowa the fiscal year is a twelve-month period of time, July 1 through June 30, to which the annual budget applies and at the end of which the City determines its fiscal position and the results of its operations, activities and projects.

A fund is an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves and equities. Funds are established for many reasons including: (a) dedication of resources to specific activities or objectives; (b) maintenance of integrity or receipts from certain sources; and (c) compliance with legal restrictions or terms establishing a jurisdiction as trust or agent.

OPERATING BUDGET

The Operating Budget represents the various recurring activities and services provided by the several departments in the City government. The Operating Budget provides those services normally associated with the City government (e.g., police, fire, street maintenance, recreation) and involves expenditures which benefit the current fiscal year. (That is, items purchased are used up during the current fiscal period.) Expenditures in the Operating Budget are for such categories as Employee Expense, Supplies and Services, and Debt Service. Funding of the Operating BUdget includes property taxes, shared state and federal revenues, fees, fines, licenses, permits, user charges and cash balances.

-308- CAPITAL BUDGET

The Capital Budget represents major "permanent" capital improvement projects requiring the nonrecurring expenditures of public funds for the acquisition of property or easement, construction, renovation or replacement of a physical asset of the City and any studies, engineering or surveys which are an integral part thereof. The Capital Budget is multi-year in scope, is updated annually and includes project-funding information. The first year of the Capital Budget (or Capital Improvement Program) is includedwith the Operating Budget for the same year to arrive at a total or gross bUdget amount. Capital budget financing comes primarily from bond proceeds, state and federal grants, Road Use Tax funds and utility depreciation funds.

EXPENDITURE CATEGORY

Expenditure category or classification is the basis for classifying and codifying costs. Major objects or categories of expense include: (a) Employee Expense; (b) Supplies and Services; (c) Capital Outlay; (d) Debt Service; and (e) Capital Improvements. Minor objects of expense or categories of expense are subdivisions of the major expense categories. For example, Employee Expense is divided into 21 subcategories, such as full-time employees, part-time employees, seasonal employees, overtime pay, holiday pay, social security expense and health insurance. Supplies and Services, Capital Outlay, Capital Improvements and Debt Service are divided into approximately 230 minor objects or categories of expense. Examples of such minor items of expenditure would be office supplies, dues and memberships, utility expense ­ electricity, motor vehicle expense - fuel, library books, architectural services, desk/chairs, land acquisition, and construction contracts. See the Chart of Accounts for more information on expenditure category breakdowns.

REVENUE CATEGORY

Revenue category or classification is a basis for classifying and codifying revenue. There are eight major categories or revenue, each divided into specific revenue items.

The eight major categories of revenue are as follows:

1. Property taxes 2. Licenses and permits 3. Intergovernmental revenue 4. Charges for services 5. Fines, forfeitures and penalties 6. Revenue from use of money and property 7. Miscellaneous revenue 8. Non-revenue receipts

An example of the specific revenue items would include the following items in the licenses and permits revenue category: business licenses, cigarette licenses, beer permits, market stand rentals, building permits, plumbing permits, heating permits, etc. See the Chart of Accounts for more information on the revenue categories.

-309- ACCRUAL BASIS OF ACCOUNTING

The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, not withstanding that the receipt of the revenue or the payment of the expenditure may take place, in whole or in part, in another accounting period.

CASH BASIS OF ACCOUNTING

The basis of accounting under which revenues are recorded when received in cash and expenditures are recorded when paid.

MODIFIED ACCRUAL BASIS OF ACCOUNTING

The basis of accounting under which expenditures are recorded at the time liabilities are incurred and revenues are recognized when they are measurable and available.

-310- POLICY GUIDELINES

-311- -312'- MEMORANDUM

December 2, 2004

TO: The Honorable Mayor and City Council Members

FROM: Michael C. Van Milligen, City Manager

SUBJECT: Fiscal Year 2006 Policy Guidelines

The purpose of this memorandum is to transmit draft Fiscal Year 2006 Fiscal Guidelines for your review and presentation to the Council. The guidelines reflect City Council direction given as part of the September 13 and 14,2004, goal setting sessions. During those sessions the City Council established goals for the next five years and established City priorities in Fiscal Year 2006.

City Council Goals

In five years the Council wants the followingfor the community:

1. Improved connectivity: Transportation, Telecommunications .2. Planned and Managed Growth 3. Diverse, Strong Dubuque Economy 4. Riverfront Development 5. Partnering for a Better Dubuque

Fiscal Year 2006 Priorities

To begin the City on the path to achieving these five-year goals, the Council priorities and .the foundation of the City's work program for Fiscal Year 2006 are:

Top Priorities • Southwest Arterial • Opportunitylowa • Stormwater Projects • Street Improvement Programs • Arts Policy and Funding

High Priorities • East-West Corridor Study

-313- • Air Service and Emplanement Strategy • National Pollution Discharge Elimination System (NPDES) • Annexation Study and Policy • Newly Annexed Areas: Plan, Zoning, Services • Property Maintenance Cases • Water and Sewer Services to New Developments

Management Agenda 2004-2006 • Mediacom Franchise Agreement • Zoning Ordinance: Update • Adams Company Relocation Completion • Collective Bargaining Negotiations • Incident Tracking System • Healthcare Cost Containment Strategy and Action • Federal Strategy • Dubuque Industrial Center West, Phase III • Gaming Agreement: Protect City's Interest • Star Brewery Completion • Waterworks ParklPyatigorsk Park • State Strategy

Major Projects 2004-2006 • Municipal Services Center Project • Landscape Gateways Project • Pedestrian Signage Project

The City of Dubuque has been able to hold its property tax askings down while continuing to provide the citizens with a very high level of City services. Unlike other cities, which have eliminated city services, quality of life continues to be a high priority of City Council and high service standards have been maintained by implementing operating efficiencies, increasing the tax base, eliminating property tax supported debt payment, and using other resources such as sales tax, gaming revenues, utility franchise fee, and user fees for property tax relief.

Fiscal Year 2005 is the current fiscal year, with a budget that was approved by the City Council in March 2004. During that process, I projected that the budget for Fiscal Year 2006 would require a 1.49% increase in taxes for the average homeowner based on no equalization order and a rollback factor of 48.8622%. However, expenditure changes in Fiscal Year 2006 that impact this projection include an increase in police and fire retirement rates of 13.2% (this is in addition to the 21.7% increase in Fiscal Year 2005 and the 20.5% increase in Fiscal Year 2004), and increases in gas and electric expense as high as 12%.

The increases have been offset by healthy sales tax revenues, hotel/motel tax receipts, and increased gaming revenues estimated based on revised projections from the implementation of a new lease agreement and expanded gaming operations from

-314- increasing slot machines (600 to 1,000).

On April 1, 2004, a new lease took effect with the Dubuque Racing Association for lease of the Dubuque Greyhound Park and Casino. This new lease was negotiated after the Fiscal Year 2005 budget was approved and raised the lease payment from 1'2% of coin-in to 1% of coin-in. This new lease and the expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000 gaming positions, effective August 1, 2005, allows the split between capital and operating expenses to be adjusted from 25% capital and 75% operating, to 35% capital and 65% operating and allows the City to avoid a property tax increase in Fiscal Year 2006.

Fiscal Year 2006 reflects changes to City of Dubuque assessed valuations. Property reappraisals were completed by the Dubuque City Assessor's office and went into affect January 1, 2004. The Fiscal Year 2006 assessed valuation for the City of Dubuque is based on the reappraised valuations. Residential property valuations increased 6 percent, Commercial property valuations decreased 2.7 percent and Industrial property valuations increased 19.4 percent. In order for the City to not increase the average homeowner's property taxes for the eleventh consecutive year, in fact, in five of those years there have been property tax decreases, the average home value was increased 6 percent when determining the Fiscal Year 2006 property tax rate of $9.6991/$1 ,000. This means the property tax rate will decrease by 3.7%. Lowering the rate reflects no property tax increase for the average homeowner.

The City's portion of the property tax rate has gone from $14.5819 in Fiscal Year 1987 to $9.6991 in Fiscal Year 2006 per thousand dollars of assessed value; a decrease of $4.88 or 33.5 percent.

A comparison of the City of Dubuque's property tax rate as projected for Fiscal Year 2006 with the other eight largest cities in Iowa shows Dubuque ranks ninth out of nine, an improvement from last year's position of eighth out of nine cities. This comparison is summarized in table format as follows:

RANK CITY TAX RATE POPULATION 1 Waterloo 18.78999 68,747 2 Sioux City 17.78712 85,013 3 Council Bluffs 17.76669 58,268 4 Iowa City 17.31394 62,380 5 Des Moines 17.05539 198,682 6 Davenport 15.24000 98,359 7 Cedar Rapids 13.11797 120,758 8 Ames 9.94868 50,731 9 Dubuque 9.69910 57,686 Average 15.19099

The average tax rate is 56.6% higher than Dubuque's and the highest comparable city, Waterloo, is 93.7% higher.

-315- The budget guidelines are developed and adopted by City Council early in the budgeting process in order to provide targets or parameters within which the budget recommendation will be formulated. The final budget presented by the City Manager may not meet all of these targets due to changing conditions and updated information during budget preparation. To the extent the recommended budget varies from the guidelines, an explanation will be provided in the printed budget document.

The budget guidelines for Fiscal Year 2006 that are being recommended to you can be summarized as follows:

• Preliminary Citizen participation opportunities

Starting Time

Wednesday, December 8 5:15 p.m. - City Manager's Public Input Meeting . Tuesday, February 15 6:30 p.m. - City Council Budget Worksession Wednesday, February 16 6:30 p.m. - City Council Budget Worksession Tuesday, February 22 6:30 p.m. - City Council Budget Worksession Thursday, February 24 6:30 p.m. - City Council BUdget Worksession Monday, February 28 6:30 p.m. - City Council Budget Worksession Wednesday, March 2 6:30 p.m. - City Council Budget Worksession Wednesday, March 9 6:30 p.m. - Public Hearing - City Council

• Gaming revenues, excluding the annual surplus distribution, will be used 65 percent in operating budget and 35 percent in the capital budget. This is a change from last year's guidelines of a 75/25 split and reflects a priority given to maintaining current City services over capital improvement projects.

• The Policy Guidelines include a property tax guideline that provides no increase in the "City" share of property taxes for the average homeowner.

• There are many high priority capital improvement projects, which need to be constructed during the FY 2006-2010 period. Most of these projects will be possible without borrowing the money (Le., selling bonds) to help finance them. However, debt will be required on 5 major capital projects, that being the Drainage Basin Master Plan, the expansion of Dubuque Industrial Center West, Sanitary Sewer Fund, Water Fund and the Parking Division.

I respectfully request Mayor and City Council adoption of the budget guidelines, which provides for no increase in the "City" share of property taxes for the average homeowner in Fiscal Year 2006, and reduces the property tax rate by 3.7%.

Michael C. Van Milligen

-316- MCVM:dll Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Dawn Lang, Budget Director Randy Peck, Human Services Manager Ken TeKippe, Finance Director

-317- POLICY GUIDELINES FOR FY 2006 BUDGET PLANNING AND ADMINISTRATION

OPERATING BUDGET GUIDELINES

The Policy Guidelines are developed and adopted by City Council early in the budgeting process in order to provide targets or parameters within which the budget recommendation will be formulated. The final budget presented by the City Manager may not meet all of these targets due to changing conditions and updated information during budget preparation. To the extent the recommended budget varies from the guidelines, an explanation will be provided in the printed budget document.

1. CITIZEN PARTICIPATION

Guideline

To encourage citizen participation in the budget process, City Council will hold at least six work sessions in addition to the budget public hearing for the purpose of reviewing the budget recommendations for each City department and requesting public input following each departmental review.

The budget will be prepared in such a way as to maximize its understanding by citizens. A copy of the recommended budget documents will be made available with the City Clerk and in the government documents section at the Carnegie Stout Public Library. The budget can be reviewed on the City's website at www.cityofdubuque.org and copies of the budget on CD will be available.

An opportunity will be provided for citizen input prior to formulation of the City Manager's recommended budget and again prior to final Council adoption, both at City Council budget work sessions and at the required budget public hearing.

2. SERVICE OBJECTIVES, ALTERNATIVE FUNDING AND SERVICE LEVELS

Guideline

The budget will identify specific objectives to be accomplished during the budget year, July 1 through June 30, for each activity of the City government. The objectives serve as a commitment to the citizens from the City Council and City administration and identify the level of service, which the citizen can anticipate.

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3. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED

Guideline

The recommended City operating budget for Fiscal Year 2006 will consist of a Recommended City Council Policy Budget that is a collection of information that has been prepared for department hearings and a Citizens Guide to the Recommended FY 2006 Budget.

The Recommended City Council Policy Budget includes the following information for each department: Highlights of Prior Year's Accomplishments and Future Year's Initiatives, a financial summary, a summary of decision packages requested and recommended, significant line items, capital improvement projects in the current year and those recommended over the next five years, organizational chart for larger departments, major goals, objectives and performance measures for each cost center within that department, and line item expense and revenue financial summaries. The purpose of these documents are to focus the attention of the City Council and the public on policy decisions involving what services the City government will provide, who will pay for them and the implications of such decisions. They will emphasize objectives, accomplishments and associated costs for the budget being recommended by the City Manager.

The Citizens Guide section of the Recommended FY 2006 Budget is a composite of tables, financial summaries and explanations, operating and capital budget messages and the adopted City Council Budget Policy Guidelines. Through graphs, charts and tables it presents financial summaries, which provide an overview of the total operating and capital budgets.

4. BALANCED BUDGET

Guideline

The City will adopt a balanced budget in which expenditures will not be allowed to exceed reasonable estimated resources. The City will pay for all current expenditures with current revenues.

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5. BALANCE BETWEEN SERVICES AND TAX BURDEN

Guideline

The budget should reflect a balance between services provided and the burden of paying for those services. It is not possible or desirable for the City to provide all of the services requested by individual citizens. The City must consider the ability of citizens to pay for services in setting service levels and priorities.

6. MAINTENANCE OF EXISTING SERVICES

Guideline

To the extent possible with the financial resources available, the City should attempt to maintain the existing level of services. Annually, however, each service should be tested against the following questions: (a) Is this service truly necessary? (b) Should the City provide it? (c) What level of service should be provided? (d) Is there a better, less costly way to provide it? (e) What is its priority compared to other services? (f) What is the level of demand for the service? (9) Should this service be supported by property tax, user fees, or a combination?

7. IMPROVED PRODUCTIVITY

Guideline

Efforts should continue to stretch the value of each tax dollar and the City services that it buys through improved efficiency and effectiveness. Using innovative and imaginative approaches to old tasks, reducing duplication of service effort, creative application of new technologies and more effective organizational arrangements are approaches to this challenge.

8. USE OF VOLUNTEERS

Discussion

As our financial capabilities decrease, we must seek to expand our resources by continuing to get citizens directly involved in supplementing our service delivery capability. Citizens must be encouraged to assume tasks previously performed or provided by City government. This may require us to change our approach to

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service delivery, such as, providing organizational skills, training, coordinating staff, office space, meeting space, equipment, supplies and materials, but not directly providing the more expensive full-time staff. Activities where citizens can continue to take an active role include: Library, Recreation, Parks, Five Flags Center (through SMG, Inc., the private management company hired by the City as of July 1,2004), Cable TV (government channel camera operators) and Police. The City initiated the Dubuque Volunteer Corps Program in FY 1998 to encourage citizen involvement in the many programs offered by the City and in maintaining the facilities for community betterment.

Guideline

In the future, the maintenance of City services may well depend on volunteer citizen staffs. In FY 2006, efforts shall continue through the Dubuque Volunteer Corps to identify and implement areas of City government where (a) volunteers can be utilized to supplement City employees to maintain service levels (i.e., Library, Recreation, Parks, Cable TV, Police) or (b) services can be "spun off" to non-government groups and sponsors (Le., YMCAlYWCA, United Way groups, Recreation Groups).

9. RESTRICTIONS ON INITIATING NEW SERVICE

Guideline

No new service will be considered except (a) when additional revenue or offsetting reduction in expenditures is proposed or (b) when mandated by state or federal law.

10. SALARY INCREASES OVER THE AMOUNT BUDGETED TO BE FINANCED FROM BUDGET REDUCTIONS IN THE DEPARTMENT(S) OF THE BENEFITING EMPLOYEES

Discussion

The recommended budget will include salary amounts for all City employees. However, past experience shows that budgeted amounts are often exceeded by fact finder and/or arbitrator awards. Such "neutrals" often do not take into account the overall financial capabilities and needs of the community and the fact that the budget is a carefully balanced and fragile thing. Such awards have caused budgets to be overdrawn, needed budgeted expenditures to be deferred, working balances to be expended and, in general, have reduced the financial condition or health of the City government. To protect the financial integrity of

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the City government, it is recommended that the cost of any salary adjustment over the amount provided in the budget (that is, not financed in the budget) come from reductions in the budget of the department(s) of the benefiting employees.

Guideline

Salary increases over the amount budgeted for salaries shall be financed from operating budget reductions in the department(s) of the benefiting employees.

11. BALANCE BETWEEN CAPITAL AND OPERATING EXPENDITURES

Guideline

The provision of City services in the most economical and effective manner requires a balance between capital (with particular emphasis upon replacement of equipment and capital projects involving maintenance and reconstruction) and operating expenditures. This balance should be reflected in the budget each year.

12. USERCHARGES

Discussion

User charges or fees represent a significant portion of the income generated to support the operating budget. It is the policy that user charges or fees be established when possible so those who benefit from a service or activity also help pay for it. This is easy in some cases and municipal utility funds have been established for certain activities, which are intended to be self-supporting. Examples of utility funds include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund. In other cases, a user charge is made after the Council determines to what extent an activity is to be self-supporting. Examples of this arrangement are fees for swimming, golf and recreation programs and certain inspection programs.

Guideline

User fees and charges should be established where possible so that those who utilize or directly benefit from a service, activity or facility also help pay for it. User fees and charges for each utility fund (Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set at a level that fully supports the total direct and indirect cost of the activity,

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including the cost of annual depreciation of capital assets and pay-as-you-go financing for future capital improvement projects.

User fees and charges in the General Fund shall be established to cover not less than the following percentages of direct operating costs (excluding debt service):

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 ACTUAL ACTUAL ACTUAL BUDGETED RECOM'D DEPARTMENT/DIVISION PERCENT PERCENT PERCENT PERCENT PERCENT Leisure Services Department Recreation Division Adult Athletics* 81.0 81.0 76.0 77.0 76.0 Children's Activities 41.6 54.0 52.0 57.0 55.0 Therapeutic Recreation 20.0 19.0 14.0 21.0 19.0 Recreation Classes 46.7 42.0 45.0 51.0 50.0 Swimming* 81.0 69.0 73.0 76.0 74.0 Golf* 100.0 100.0 100.0 100.00 100.00 Park Division 10.3 10.50 10.7 12.1 12.0 Library Department 8.2 6.1 6.1 5.2 6.0 Airport Department w/abated debt 89.6 79.8 79.4 72.7 77.0 Building Services Division 94.4 77.77 95.6 98.0 98.0 Planning Services Department 11.6 11.9 18.5 19.9 18.0 Health Services Department Food/Environmental Insp. 58.6 57.6 52.7 52.7 58.0 Animal Control 94.3 81.7 100.0 90.4 90.0 Housing Services Department General Housing Inspection 45.4 34.8 42.7 43.0 45.0

* Includes an amount to help cover indirect costs (administration)

13. OUTSIDE FUNDING

Discussion

The purpose of this guideline is to establish the policy that the City should aggressively pursue outside funding to assist in financing its operating and capital budgets. However, the long-term commitments required for such funding must be carefully evaluated before any agreements are made. Commitments to assume an ongoing increased level of service or level of funding once the outside funding ends must be avoided.

Guideline

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In order to minimize the property tax burden, the City of Dubuque will make every effort to obtain federal, state and private funding to assist in financing its operating and capital budgets. However, commitments to guarantee a level of service or level of funding after the outside funding ends shall be avoided.

14. GENERAL FUND OPERATING RESERVE OR WORKING BALANCE

Discussion

An operating reserve or working balance is an amount of cash, which must be carried into a fiscal year to pay operating costs until tax money, or other anticipated revenue comes in. Without a working balance there would not be sufficient cash in the fund to meet its obligations and money would have to be borrowed. Working balances are not available for funding a budget; they are required for cash flow (i.e., to be able to pay our bills before taxes are collected).

The rule of thumb the state recognizes for determining a reasonable amount for a working balance is (a) anticipated revenues for the first three months of the fiscal year less anticipated expenditures or (b) 5 percent of the total General Fund operating budget (excluding fringes and tort liability expense). However, in discussions with Moody's Investor Service, a factor of 1°percent was recommended for "A" rated cities. This is due to the fact that a large portion of our revenue sources are beyond our control and therefore uncertain. In the case of Dubuque, 10% represents approximately $2,796,000.

Guideline The guideline of the City of Dubuque is to maintain a General Fund working balance or operating reserve of 10 percent of the total General Fund Operating budget requirements or approximately $2,796,000 for FY·2006.

15. USE OF UNANTICIPATED, UN-OBLIGATED, NONRECURRING INCOME

Discussion

Sometimes income is received that was not anticipated and was not budgeted. Often this money is not recurring and reflects something, which happened on a one-time basis to generate the "windfall".

Nonrecurring income must not be spent for recurring expenses. To do so causes a funding shortfall the next budget year before you even start budget

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preparation. Nonrecurring expenditures would include capital improvements and equipment purchases.

Guideline Nonrecurring un-obligated income shall be spent only for nonrecurring expenses. Capital improvement projects and majpr equipment purchases tend to be nonrecurring expenditures.

16. USE OF "UNENCUMBERED FUND BALANCES"

Discussion

Historically a budget is not spent 100% by the end of the year and a small unencumbered balance remains on June 30th. In addition, income sometimes exceeds revenue estimates resulting in some unanticipated balances at the end of the year. These amounts of un-obligated, year-end balances are in turn "carried over" into the new fiscal year to help finance it.

The FY 2004-05 General Fund budget, which went into effect July 1, anticipated a "carryover balance" of $200,000 or approximately 2 percent of the General Fund. For multi-year budget planning purposes, these guidelines assume a carryover balance of $200,000 in FY 2006 through FY 2010.

Guideline

The available carryover General Fund balance to help finance the budget and to reduce the demand for increased taxation shall be anticipated not to exceed $200,000 forFY 2005-06 and beyond through the budget planning period. Any amount over that shall be programmed in the next budget cycle as part of the capital improvement budgeting process.

17. PROPERTY TAX DISCUSSION

Assumptions - Resources

a. Unencumbered funds or cash balances of $200,000 will be available in FY 2006 and each succeeding year to support the operating budget.

b. State-shared revenues, such as Bank Franchise, Municipal Assistance, Liquor Sales, Personal Property Replacement Taxes, and Monies and Credits have been permanently cut from the City's resources in the last 2 budget years.

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c. Hotel/motel tax receipts will increase 10 percent over FY 2005 budgeted receipts for FY 2006, and then increase at an annual rate of 5 percent per year.

d. State Transit operating assistance will also be maintained at its current level.

e. Miscellaneous revenue, excluding state shared revenues, has been estimated at 2 percent growth per year over budgeted FY 2005.

f. Gaming revenues generated have been estimated based on revised projections from the implementation of a new lease agreement and expanded gaming operations from increasing slot machines (600 to 1,000).

g. Gaming revenues from taxes and the DRA lease (not distributions) have been adjusted from the FY 2005 split of 75% / 25% between operating and capital budgets, to a 65% percent operating and 35% capital budget split for FY 2006.

h. The residential rollback factor will decrease from 48.456 percent to 47.960 percent or a 1.02 percent reduction for FY 2006. For Fiscal Years 2007 and beyond, a 10-year average for rollbacks and equalization orders was used.

i. Property reappraisals were completed by the Dubuque City Assessor's office and went into affect January 1, 2004. The FY 2006 assessed valuation for the City of Dubuque is based on the reappraised valuations. Residential property valuations increased 6 percent, Commercial property valuations decreased 2.7 percent and Industrial property valuations increased 19.4 percent. The average home value was increased 6 percent when determining the FY 2006 property tax rate, reflecting no property tax increase for the average homeowner. Assessed valuations were increased 2 percent per year beyond FY 2006.

j. Sales tax projections anticipate 50 percent of four quarterly payments in the General Fund for property tax relief. Sales tax projections for FY 2006 have been estimated to increase 10 percent over actual FY 2004 and then increase at an annual rate of 4 percent per year.

k. It is anticipated that in FY 2005 and beyond, 75 percent of the revenue from the Downtown TIF will be used for downtown development projects in order to support additional downtown parking, gateway improvements and plaza amenities. To the extent these funds are not required to support debt payments or project expense, the excess will be distributed per state code to

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each taxing body. Certain economic development grants require 100 percent of the revenue from a particular project.

I. For purposes of budget projections only, it is assumed that City property taxes will continue to increase at a rate necessary to meet additional requirements over resources beyond FY 2006, with the gaming revenue (from taxes and the ORA lease) split remaining at 65% operating budget and 35% capital budget.

m. Gas and electric franchise fees have been adjusted based on one year's trend data. The FY 2006 budget is estimated to increase about 7 percent over 2003-2004 actual, and then increases at an annual rate of 2.5 percent per year.

Assumptions· Requirements a. A wage adjustment is reflected in the projections for FY 2006 and each succeeding year. Police and Fire retirement rates have been increased 13.2 percent, costing the City an additional $270,000 per year.

b. Health insurance costs are estimated to increase 9 percent over the FY 2005 budgeted rates. Estimates for FY 07-10 have been increased by 7 percent per year.

c. General operating supplies and services are estimated to increase 6 percent over actual in FY 2004 or 3 percent over budget in FY 2005, depending on which year reflects expenditures more accurately. 2.5 percent increase is estimated in succeeding years.

d. Electrical energy expense is estimated to increase 12 percent over FY 2004 actual expense, then 2.5 percent per year beyond.

e. Natural gas expense is estimated to increase 10 percent over FY 2004 actual, then 2.5 percent per year beyond. There is no degree-day adjustment this year.

f. The Convention and Visitors Bureau contract will continue at 50 percent of actual hotel/motel tax receipts, less the loan repayment.

g. Equipment costs are estimated higher for FY 2006 budget to get "back on track"; due to the·decreased approved replacements in FY 2005.

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h. Debt service is estimated based on no additional tax-supported General Obligation bond sales in FY 2006 - 2010..

I. Unemployment expense in the General Fund has been increased from $25,000 to $45,000 for FY 2006 based on past years actual experience.

j. Motor vehicle fuel expense is estimated to increase 8 percent over FY 2004 actual expense and maintenance expense has been increased 6 percent over FY 2004 actual expense.

k. Postage rates are estimated to remain steady over the next few years.

I. Travel Professional Conference and Strategic Planning expense are funded in FY 2006.

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IMPACT ON AVERAGE RESIDENTIAL PROPERTY· EXAMPLE

CITY TAX PERCENT DOLLAR ACTUAL· PAST HISTORY CALCULATION INCREASE INCREASE FY 1989 "City" Property Tax $ 453.99 -11.4% - $ 58.51 FY 1990 "City" Property Tax $ 449.94 - .9% -$ 4.05 FY 1991 "City" Property Tax* $ 466.92 +3.8% +$ 16.98 FY 1992 "City" Property Tax $ 483.63 +3.6% +$ 16.71 FY 1993 "City" Property Tax* $ 508.73 +5.0% +$ 5.10 FY 1994 "City" Property Tax $ 510.40 + .3% +$ 1.51 FY 1995 "City" Property Tax* $ 522.65 +2.4% +$ 12.41 FY 1996 "City" Property Tax $ 518.10 - .9% -$ 4.54 FY 1997 "City" Property Tax* $ 515.91 - .4% -$ 2.19 FY 1998 "City" Property Tax $ 512.25 - .7% -$ 3.66 FY 1999 "City" Property Tax* $ 512.25 - .0% -$ 0.00 FY 2000 "City" Property Tax $ 511.38 - .2% -$ 0.87 FY 2001 "City" Property Tax $ 511.38 0.00% $ 0.00 FY 2002 "City" Property Tax $ 511.38 0.00% $ 0.00 FY 2003 "City" Property Tax* $ 485.79 - 5.00% -$ 25.58 FY 2004 "City" Property Tax $ 485.79 0.00% $ 0.00 FY 2004 With Homestead $ 493.24 + 1.53% +$ 7.45 Adjustment FY 2005 "City" Property Tax* $ 485.93 - 1.48% -$ 7.32 FY 2005 With Homestead* $ 493.25 0.00% $ 0.01 Adjustment

PROPOSED FY 2006 "City" Property Tax** $ 493.25 + 0.00% +$ 0.00 Average FY 1989·FY 2006 - .24% -$ 2.59

PROJECTION **

FY 2007 "City" Property Tax* $497.11 + 0.78% +$ 3.86 FY 2008 "City" Property Tax $ 517.01 + 4.00% +$ 19.91 FY 2009 "City" Property Tax* $ 537.15 + 3.90% +$ 20.14 FY 2010 "City" Property Tax $ 556.92 + 3.68% +$ 19.77

* Denotes year of State-issued equalization orders. **The FY 2006 property tax calculation takes into account the 6% valuation increase for the average residential homeowner as determined by the reappraisal.

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IMPACT ON COMMERCIAL PROPERTY - EXAMPLE

CITY TAX PERCENT DOLLAR ACTUAL - PAST HISTORY CALCULATION INCREASE INCREASE FY 1989 "City" Property Tax $2,106.42 -15.4% -$ 384.00 FY 1990 "City" Property Tax $2,086.50 - .9% - $ 20.00 FY 1991 "City" Property Tax* $2,189.48 +4.9% +$ 102.98 FY 1992 "City" Property Tax $2,280.18 + 4.1% +$ 90.70 FY 1993 "City" Property Tax* $2,231.05 -2.2% -$ 49.13 FY 1994 "City" Property Tax $2,250.15 +0.9% +$ 19.10 FY 1995 "City" Property Tax* $2,439.60 +8.4% +$ 189.45 FY 1996 "City" Property Tax $2,439.60 +0.0% +$ 0.00 FY 1997 "City" Property Tax* $2,659.36 +9.0% +$ 219.76 FY 1998 "City" Property Tax $2,738.43 +2.97% +$ 79.07 FY 1999 "City" Property Tax* $2,952.03 +7.8% +$ 213.60 FY 2000 "City" Property Tax $2,934.21 -0.6% -$ 17.82 FY 2001 "City" Property Tax $2,993.00 +2.0% +$ 58.86 FY 2002 "City" Property Tax $2,910.25 -2.77% -$ 82.83 FY 2003 "City" Property Tax* $3,186.27 +9.48% +$276.03 FY 2004 "City" Property Tax $3,278.41 + 2.89% +$ 92.14 FY 2005 "City" Property Tax* $3,349.90 + 2.18% +$ 71.49 *denotes year of State-issued equalization order

PROPOSED FY 2006 "City" Property Tax** $3,162.27 - 5.60% -$187.63 Average FY 1989-2006 + 1.51 % +$ 37.32

PROJECTION **

FY 2007 "City" Property Tax* $3,163.02 + 0.02% +$ 0.75 FY 2008 "City" Property Tax $3,277.79 + 3.63% +$ 114.77 FY 2009 "City" Property Tax* $3,379.87 + 3.11% +$ 102.08 FY 2010 "City" Property Tax $3,491.64 + 3.31% +$ 111.77

* Denotes year of State-issued equalization orders **The FY 2006 property tax calculation takes into account the 2.7% valuation decrease for commercial property as determined by the reappraisal.

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IMPACT ON INDUSTRIAL PROPERTY· EXAMPLE

CITY TAX PERCENT DOLLAR ACTUAL· PAST HISTORY CALCULATION INCREASE INCREASE FY 1989 "City" Property Tax $5,900.35 -15.40% -$1,074.65 FY 1990 "City" Property Tax $5,844.55 - .90% -$ 55.80 FY 1991 "City" Property Tax $6,133.00 + 4.90% +$ 288.45 FY 1992 "City" Property Tax $6,387.05 + 4.10% +$ 254.05 FY 1993 "City" Property Tax $6,249.45 - 2.20% -$ 137.60 FY 1994 "City" Property Tax $6,302.95 + 0.90% +$ 53.50 FY 1995 "City" Property Tax $5,891.05 - 6.50% -$ 411.90 FY 1996 "City" Property Tax $5,891.05 + 0.00% +$ 0.00 FY 1997 "City" Property Tax $5,690.75 - 3.40% -$ 200.30 FY 1998 "City" Property Tax $5,700.56 + .17% +$ 9.81 FY 1999 "City" Property Tax $5,536.70 - 2.87% -$ 163.86 FY 2000 "City" Property Tax $5,358.00 - 3.23% -$ 178.70 FY 2001 "City" Property Tax $5,533.00 + 3.28% +$ 175.55 FY 2002 "City" Property Tax $5,380.42 - 2.77% -$ 153.13 FY 2003 "City" Property Tax $5,106.00 - 5.10% -$ 274.40 FY 2004 "City" Property Tax $5,136.50 + .60% +$ 30.50 FY 2005 "City" Property Tax $5,036.00 -1.96% -$ 100.50

PROPOSED FY 2006 "City" Property Tax** $5,790.36 + 14.98% +$ 754.36 Average FY 1989·FY 2006 - 0.86% -$ 65.81

PROJECTION**

FY 2007 "City" Property Tax $5,791.74 + 0.02% +$ 43.58 FY 2008 "City" Property Tax $6,001.88 + 3.63% +$ 20.78 FY 2009 "City" Property Tax $6,188.80 + 3.11% +$ 43.04 FY 2010 "City" Property Tax $6,393.45 + 3.31% +$ 20.54

**The FY 2006 property tax calculation takes into account the 19.4% valuation increase for industrial property as determined by the reappraisal.

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History of Increases in Property Tax Askings

% Change Fiscal "City" Property in Tax Present Impact Year Tax Askings (000) Askings on Homeowner

FY 1989 $10,918,759 -12.0% Sales Tax initiated -11.4% FY 1990 $10,895,321 - 0.2% - .9% FY 1991 $11,553,468 + 6.0% +3.8% FY 1992 $12,249,056 +6.0% +3.6% FY 1993 $12,846,296 4.9% +5.0% FY 1994 $13,300,756 +3.5% + .3% FY 1995 $13,715,850 + 3.1% +2.4% FY 1996 $14,076,320 +2.6% - .9% FY 1997 $14,418,735 +2.4% - .4% FY 1998 $14,837,670* +2.9% - .7% FY 1999 $15,332,806* +3.3% .0% FY 2000 $15,285,754 - 0.3% - .2% FY 2001 $15,574,467 + 1.9% .0% FY 2002 $15,686,579 + .8% .0% FY 2003 $15,771,203 + .5% - 5.0% FY 2004 $16,171,540 +2.5% + 1.5% FY 2005 $16,372,735 + 1.2% .0% FY 2006 $16,019,435 - 2.2% .0% Estimate Average FY 1989·2006 + 1.49% - .16% *Without TIF Accounting change.

Impact on Tax Askings and Average Residential Property

To maintain the current level of service based on -the previous assumptions would require the following property tax asking increases:

"City" Property % I $ Impact on Avg. Year Tax Askings (000) % Increase Residential Property* FY 2005 $16,373 FY 2006 $16,019 - 2.16% 0% I $ 0.0 FY 2007 $16,344 + 2.03% +0.78% I +$ 3.86 FY 2008 $17,275 + 5.70% +4.00% I +$19.91 FY 2009 $18,170 + 5.18% +3.90% I +$20.14 FY 2010 $19,146 + 5.37% +3.68% I +$19.77

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Guideline

The recommended guideline is no tax increase for the average residential property owner, and to change the percent of annual gaming revenues going into the operating budget from 75 percent to 65 percent.

Note: One percent increase in the tax rate will generate approximately $160,194.

CIP BUDGET GUIDELINES

18. INTEGRATION OF CAPITAL RESOURCES

Guideline

In order to obtain maximum utilization, coordination and impact of all capital improvement resources available to the City, state and federal block and categorical capital grants and funds shall be integrated into a comprehensive five year Capital Improvement Program (CIP) for the City of Dubuque.

19. INTEGRITY OF CIP PROCESS Guideline

The City should make all capital improvements in accordance with an adopted Capital Improvement Program (CIP). If conditions change and projects are to be added and/or deleted from the CI P, the changes shall be made only after approval by the City Council.

20. RENOVATION AND MAINTENANCE

Guideline

Capital improvement expenditures should concentrate on renovating and maintaining existing facilities to preserve prior community investment.

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21. NEW CAPITAL FACILITIES

Guideline

Construction of new or expanded facilities which would result in new or substantially increased operating costs will be considered only if: 1) their necessity has been clearly demonstrated; 2) their operating cost estimates and plans for providing those operating costs have been developed; 3) they can be financed in the long term; and 4) they can be coordinated and supported within the entire system.

22. COOPERATIVE PROJECTS

Guideline

Increased efforts should be undertaken to enter into mutually beneficial cooperative capital improvement projects with the County, school district and private groups. Cost sharing to develop joint-use recreation facilities and cost sharing to improve roads and bridges are examples.

23. USE OF GENERAL OBLIGATION BONDS

Discussion

The Iowa Constitution limits the General Obligation debt of any city to 5 percent of the actual value of the taxable property within the city. The Iowa legislature has determined that the value for calculating the debt limit shall be the actual value of the taxable property prior to any "rollback" mandated by state statute.

The FY 2004-05 taxable value for calculating the debt limit is $2,647,847,961, which indicates a total General Obligation debt capacity of $132,392.398. Outstanding G.O. debt (including tax increment debt) on June 30, 2005 will be $24,035,000 (18.2 percent) leaving an available debt capacity of $108,357,398 (81.8 percent).

As we approach the preparation of the FY 2006-201 oCapital Improvement Program (CIP) the problem is not our capacity to borrow money but (a) how to identify, limit and prioritize projects which justify the interest payments and (b) how to balance high priority projects against their impact on the property tax rate.

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Guideline

There are many high priority capital improvement projects, which need to be constructed during the FY 2006-2010 period. Most of these projects will be possible without borrowing the money (i.e., selling bonds) to help finance them. However, debt will be required on 5 major capital projects, that being the Drainage Basin Master Plan, the expansion of Dubuque Industrial Center West, Sanitary Sewer Fund, Water Fund and the Parking Division. In determining whether a project should be financed in total or in part from bond funds the City Council must consider and balance: (a) the community impact of not doing the project (poor streets, deteriorated park buildings, sewer problems, higher operating costs); (b) possible operating budget cuts to offset higher debt service payments; (c) anticipated interest rate; and (d)the impact on the tax rate and taxpayer of issuing the bonds.

24. ROAD USE TAX FUND

Discussion

Actual Road Use Tax Fund receipts are as follows:

FY 1985 - $2,069,065 FY 1995 - $3,484,524 FY 1986 - $2,207,467 FY 1996 - $3,841,921 FY 1987 - $2,259,436 FY 1997 - $3,977,528 FY 1988 - $2,379,592 FY 1998 - $4,072,296 FY 1989 - $2,617,183 FY 1999 - $4,415,192 FY 1990 - $3,037,587 FY 2000 - $4,671,656 FY 1991 - $3,122,835 FY 2001 - $4,628,072 FY 1992 - $3,119,087 FY 2002 - $4,620,514 FY 1993 - $3,121,357 FY 2003 - $4,696,399 FY 1994 - $3,343,678 FY 2004 - $4,806,295

The FY 2005 budget was based on receiving $4,632,453 in Road Use Tax funds. In FY 2005,72.5 percent of the Road Use Tax income is in the operating budget.

Guideline

It is preferable to shift Road Use Tax funds to the capital budget for street maintenance and repair to reduce the need to borrow funds for routine street maintenance and improvements. This shift cannot occur until such time as there is increased revenues or reduced expense that would allow this shift without a property tax impact.

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25. COMMERCIAL AND INDUSTRIAL DEVELOPMENT

Guideline

Current City, commercial and industrial development efforts should be continued to (a) preserve current jobs and create new job opportunities and (b) enlarge and diversify our economic base. Financing these efforts and programs should continue to be a high priority for Community Development funding.

26. HOUSING

Guideline

In order to maintain an adequate supply of safe and decent housing, the City should strive to preserve existing single family and rental housing and provide opportunities for development of new housing within the City's corporate limits for all citizens, particularly for people of low and moderate income.

27. SALES TAX

Guideline

Thirty percent of projected sales tax receipts will be used for: (a) the reduction by at least 75 percent of street special assessments and (b) the maintenance and repair of streets. Twenty percent will be used for: (a) the upkeep of City-owned property such as sidewalks, steps, storm sewers, walls, curbs, traffic signals and signs, bridges and buildings and facilities (e.g., Airport, Five Flags Center, Library, Law Enforcement Center, City Hall, fire stations, parks and swimming pools); (b) Transit equipment such as buses; (c) riverfront and wetland development; and (d) economic development projects.

28. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE DUBUQUE RACING ASSOCIATION

The contract with the Dubuque Racing Association calls for distribution at the· th end of its fiscal year, November 30 , of 40 percent (this was 50 percent, but changed with the new lease agreement on April 1, 2004) of its net cash operating funds to the City of Dubuque. In mid-December, the City will receive

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an un-audited estimate of proceeds to be distributed. These proceeds will then be allocated beginning with the next fiscal year through the capital improvement process with the highest priority given to reducing the City's annual borrowing. This policy was changed in FY 2004 to allow for use of the proceeds to support the current capital improvement budget (versus the next fiscal year's bUdget).

In addition, the Dubuque Racing Association provides the City with projections of future distributions since gaming is a highly volatile industry the estimates are discounted prior to inclL!ding them in the City's Five Year CIP.

One hundred percent of the January 2006 projections of operating surplus have been anticipated as resources to support the Fiscal Year 2006 capital improvement projects. This level will be maintained for the Fiscal Year 2007 surplus for the FY 2007 resource estimate and then reduced by 5 percent for the January 2008 projected surplus for FY 2008, 10 percent for FY 2009, and 15 percent for FY 2010 resources.

Guideline

In Fiscal Year 2006, the City anticipates distribution of a significant amount of net cash proceeds for use in the Capital Improvement Program. These amounts will . be budgeted in the Five Year CIP in the year they are received and will be used to reduce required General Obligation borrowing. The three out-years will be discounted by 5 percent, 10 percent, and 15 percent respectively.

29. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING BUDGET EXPENSE

Guideline

Capital improvement expenditures that will reduce future maintenance and operating expense will receive priority funding and these types of initiatives will be encouraged in all departments and funding sources as a means of maximizing the use of available resources. This emphasis reflects fiscally responsible long range planning efforts.

30. USE OF GAMING RELATED RECEIPTS

Guideline

The amount of total gaming receipts from taxes and rent committed annually in support of the annual operating budget has historically been one-third of the total

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gaming tax and lease revenues. It was felt that a fiscally sound policy was to commit two thirds of the gaming revenues to the capital budget, thereby providing a cushion for future years, when gaming revenues could fluctuate with the local economy. Should gaming revenues begin to decline, the capital budget projects would be eliminated, deferred or funded from some other source if they were a high priority.

The City has always tried to minimize dependence on gaming revenues in the operating budget. This was maintained over years, while still meeting the property tax guideline of no increase for the average residential property. However, FY 2004 brought new financing challenges including double-digit inflation in key areas (health costs, liability and property insurance, and electrical costs), a 20.5 percent increase in Police and Fire Pension costs, decreasing State revenues, and reduced sales tax projections. The FY 2004 guideline reflected the impact of the changes and included a change to a 50/50 split of gaming taxes and rents between the operating and capital budgets.

The FY 2005 guideline again reflected increasing financing challenges and the split was recommended to change from 50/50 to 75 percent operating and 25 percent capital. This change reflects priority being given to maintaining current service levels in the operating budget and reduced resources in the capital budget.

On April 1, 2004, a new lease took effect with the Dubuque Racing Association for lease of the Dubuque Greyhound Park and Casino. This new lease was negotiated after the FY 2005 budget was approved and raised the lease payment from ~% of coin-in to 1% of coin-in. This new lease and the expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000 gaming positions, effective August 1, 2005, allows the split between capital and operating expenses to be adjusted from 25% capital and 75% operating, to 35% capital and 65% operating.

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