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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 -13- January 13, 2005 Page 2 of 23 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. -14- January 13, 2005 Page 3 of 23 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.