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Dubuque manager recommends 1% property tax hike and utility increases in FY2027 budget
Summary
City manager presented a FY2027 budget recommendation that would raise the city property tax rate by 1% and increase water (+3%), sewer (+9%), refuse (+9%) and stormwater (+9%) rates; eight public hearings are scheduled before the April 28 adoption vote.
City Manager delivered the city’s proposed fiscal year 2027 budget on April 6, recommending a 1% increase in the city property tax rate and a package of utility rate rises intended to finance public safety, streets, and infrastructure projects.
The proposed property tax change would raise roughly $2 million in city revenue and translate to an estimated $26.68 annual increase for the average homeowner (an approximate 3% rise in city property taxes for a home valued at $213,211, per the presentation). The manager emphasized the recommendation is meant to sustain investments tied to council priorities including fire and police staffing, street maintenance, stormwater management and central-avenue revitalization.
On utilities, the manager proposed a 3% increase in water rates and 9% increases for sanitary sewer, refuse and stormwater. The net effect for an average household would be about $6.77 more per month under the recommendation; the city noted discounts and credits available for qualifying low-income and tax-exempt properties.
Manager’s rationale and constraints
Manager Mike (staff) told the council the proposal was built from department requests aligned to council goals set in 2025. He framed the recommendation as intended to avoid deeper cuts next year and to preserve recurring services rather than rely on one-time revenues. The manager also warned that pending state-level property tax reform could reduce local revenue options in coming years and that council should avoid funding recurring programs with nonrecurring funds.
Public review schedule
Council set a series of eight departmental public hearings through April 28 to review specific department budgets and to receive public comment; the final budget adoption and property tax rate setting are scheduled for the April 28 meeting. The manager invited residents to use the multiple hearings to ask detailed department-level questions and highlighted online budget tools and forthcoming materials to help explain capital carryovers and grant matches.
Where the money would go
The recommendation includes recurring allocations for fire and police staffing increases, incremental park maintenance positions, and continued capital investments such as sanitary sewer and stormwater projects. The downtown TIF program is being restructured in the plan: the city proposes to claim 75% of downtown TIF revenue beginning FY28, releasing the remainder back to other taxing districts; that change reduces available downtown TIF funding and leads to a recommended reduction in the Five Flags renovation request from $23.5 million to $7 million in the five-year plan.
What residents asked
During public input at the meeting residents pressed for clearer explanations of levy language and how assessed values translate to tax bills; staff acknowledged the complexity of multi-year capital projects and grant matches and said the city will publish clearer explanations and examples on its budget pages and cover the details at the upcoming public hearings.
