Dubuque council adopts $276.4 million FY2026 budget, advances $152.1 million five‑year CIP

The Dubuque City Council voted 7-0 April 28 at a special session in the Historic Federal Building to adopt an amended fiscal year 2026 budget and a five‑year capital improvement program, approving a $276,430,089 recommended total budget and related resolutions.

Jennifer Larson, the city’s chief financial officer, presented the recommendation and the figures that formed the basis for the vote. "I will be presenting the public hearing to adopt the fiscal year 26 budget," Larson said. She said the recommended total budget is $276,430,089, with an operating budget of $184,528,990 and capital of $91,901,249.

The budget recommendation includes a proposed city property tax levy of just over $29.8 million, a 5.77% increase, and a tax rate rise of about 1.38% to $10.06 per $1,000 of assessed value. Larson set out enterprise fund rate changes the council approved later in the meeting: recommended 9% increases for both water and sanitary sewer, a 5% increase for curbside collection and a 5% stormwater increase, which the city estimated would raise average monthly utility costs by about $9.91.

Why it matters: the plan directs money to public safety, infrastructure and parks while increasing the levy for the typical homeowner. Larson said public safety accounts for 42.8% of general fund expenditures and noted a recommended five‑year CIP that relies on new debt financing for large infrastructure work.

The council and staff highlighted the CIP’s major projects. Larson said the recommendation anticipates $152.1 million in new debt over the five‑year CIP, including about $78.4 million for sanitary sewer projects, $22.9 million for Five Flags renovation and $15.9 million for water projects. The presentation named individual projects such as the Catfish Creek Sewer Shed interceptor ($47 million total), a Source Water PFAS reduction project ($9.5 million) and the Fourteenth Street overpass ($43 million total, with $25 million from a REA grant and other partners).

Mayor Cavanaugh framed the council’s discussions as unusually engaged. "We received more public input during the budget process this year than I can recall ever receiving before," the mayor said, noting the council had adjusted the recommendation to add items suggested by residents and staff, including a full‑time parks maintenance position for Eagle Point Park, airport marketing dollars, a match for a Transportation Alternatives Program (TAP) trail grant, Lynnwood Cemetery partnership funding and replacement of 10 sanitary sewer flow meters.

Public comment before the vote emphasized praise for the city’s process and raised parks and infrastructure concerns. Clark Slows of Burlington Street told the council, "the city of Dubuque is the most transparent" of taxing jurisdictions he has observed, and praised staff responsiveness during the budget process.

Council debate centered on one staffing decision in the recommendation: converting a previously proposed part‑time strategic partnerships role into a full‑time director position but delaying that hire until Jan. 1, 2026. Several council members, including Mayor Cavanaugh and others, said the position is important for state and federal advocacy and for tracking grants and legislative changes; some urged accelerating the hire. City Manager Mike Van Milligen said the administration recommended a Jan. 1 start but offered a path to accelerate hiring if year‑end (June 30) results produced unbudgeted positive balances. "I have a high level of confidence. We're gonna finish out the fiscal year in positive position," Van Milligen said, adding that an extraordinary interest revenue item this year creates potential flexibility to start the position earlier than January.

The meeting also recorded an immediate, unexpected federal funding shock that influenced council remarks: Larson said the city received notice that the federal government cut nearly $400 million in AmeriCorps funding nationwide and that the city’s FY2026 AmeriCorps award of $362,250 would be terminated; Larson added the city’s local match for that program totaled about $175,300. Council members warned the cut could affect summer feeding and youth programs and called the timing and uncertainty especially challenging.

Financial context cited by Larson included Moody’s Investors Service credit commentary: Moody’s affirmed Dubuque’s AA2 rating and the presentation showed general fund reserve projections around $32.2 million (about 37.6% of projected revenue under the city’s methodology). Larson and council members emphasized strategic use of debt: the recommendation projects city indebtedness near $289.6 million for FY2026 and uses about 33.5% of the statutory debt limit in the recommended budget.

After discussion the council voted 7-0 to "receive and file the documents and adopt the two resolutions" authorizing the amended FY2026 budget and the five‑year CIP. Vote: Farber, Sprank, Resnick, Cavanaugh, Jones, Roussell and Wethal — all aye.

What happens next: the council adopted implementing ordinances and resolutions on utility rates, street programming and planning fees later in the meeting (see companion "Votes at a glance" article for roll calls and texts). City staff said departments will begin execution and that a formal year‑end closeout in August will confirm whether one‑time unbudgeted revenues can accelerate the strategic partnerships hire.

Ending: Council members closed by thanking staff and residents for extensive engagement during a budget season the mayor described as "probably the most unique budget experience" he has seen; the council adjourned after completing the night's votes.