Iowa Flood Mitigation Program Amendment No. 1 Copyright 2014
City of Dubuque Action Items # 2.
ITEM TITLE: Iowa Flood Mitigation Program Amendment No. 1
SUMMARY: City Manager recommending adoption of a resolution authorizing an
amendment to the Bee Branch Watershed Flood Mitigation Project, State
Flood Mitigation Board Funding Agreement.
RESOLUTION Authorizing the execution of an amendment to the
agreement with the State of Iowa Flood Mitigation Board which authorizes
the City's use of Sales Tax Increment Funding for the Bee Branch
Watershed Flood Mitigation Project
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ MVM Memo City Manager Memo
❑ Staff memo Staff Memo
❑ Iowa Flood Mitigation Program Amendment 1 Supporting Documentation
❑ Resolution Resolutions
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Bee Branch Watershed Flood Mitigation Project, State
Flood Mitigation Board Funding Agreement
DATE: April 16, 2015
Budget Director Jennifer Larson is requesting City Council adopting of a resolution
authorizing an amendment to the Bee Branch Watershed Flood Mitigation Project, State
Flood Mitigation Board Funding Agreement.
On April 13, 2015, the Iowa Flood Mitigation Board approved the City's requested
funding agreement amendment to provide an additional $5.6 million in sales tax
increment in Fiscal Years 2014 through 2018 and remove $5.6 million in sales tax
increment from Fiscal Years 2031 through 2033. This request was approved by the
Board because the City's actual sales tax collection growth in Fiscal Year 2014 was
5.20%, well above the projected growth of 1.97%. As a result, 70% of the actual sales
tax increment collected in Fiscal Year 2014 was $882,784. When the actual Fiscal Year
2014 sales tax growth is considered, the ten year historic sales tax growth rate is
2.15%. As a result, the available sales tax increment funding is projected to be more in
each subsequent fiscal year than anticipated and what was reflected in the original
funding agreement.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jml
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
Gus Psihoyos, City Engineer
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
SUBJECT: Amendment to Bee Branch Watershed Flood Mitigation Project, State Flood
Mitigation Board Funding Agreement
DATE: April 16, 2015
INTRODUCTION
The purpose of this memorandum is to request approval of an amendment to the Bee Branch
Watershed Flood Mitigation Project, State Flood Mitigation Board Funding Agreement.
BACKGROUND
The Bee Branch Watershed, which includes the City's most developed areas where over 50% of
city residents either live or work, has experienced repeated flooding impacting thousands of
properties and over seventy businesses. Six Presidential Disaster Declarations have been
issued since 1999 as a result of flood damage to public and private property.
In 2012 the State of Iowa Flood Mitigation Program (Program) was created. It established two
possible funding sources for flood mitigation projects: a Flood Mitigation Fund and a Sales Tax
Increment Fund. To date, no funds have been appropriated for the Flood Mitigation Fund. The
Sales Tax Increment Fund is to consist of the increase in the state share of the sales tax
revenues from communities with qualifying applications. The maximum state share of sales tax
increment that can be diverted from the state and used instead for flood mitigation projects is
$30 million per year. The maximum award for any qualifying single community is $15 million per
year. To qualify for sales tax increment funding, federal financial assistance must have been
secured for the project. A local match is also required and the state sales tax increment cannot
exceed 50% of the total project cost. In April of 2013 the State Flood Mitigation Program Board
(the Board) was established. And at its third meeting in July of 2013, the Board adopted the
administrative rules for the Program.
In 2013, the City Council adopted the Drainage Basin Master Plan authored by HDR
Engineering that outlines improvements to mitigate flooding. Collectively, the 12-phase project is
referred to as the Bee Branch Watershed Flood Mitigation Project.
In November of 2013 the City Council adopted Resolution 336-13 authorizing the City's
application to the State for the use of up to $98,494,178 in sales tax increment funds for the Bee
Branch Watershed Flood Mitigation Project. The City's application included a Project Plan that
included information about the various phases of the project, the schedule for construction, and
a financing plan.
On December 4, 2013, the Iowa Flood Mitigation Board approved the City's application and use
of$98,494,178.00 in state sales tax increment funds for the Bee Branch Watershed Flood
Mitigation Project.
In February of 2014, the City Council adopted Resolution 31-14 authorizing the execution of an
agreement with the Iowa Flood Mitigation Board binding the City to the terms of the agreement
as required for the City's receipt of up to $98,494,178.00 in state sales tax increment funds for
the Bee Branch Watershed Flood Mitigation Project through the State Flood Mitigation Program.
The City's application (and associated Project Plan) was established as an integral part of the
agreement.
DISCUSSION
On April 13, 2015, the Iowa Flood Mitigation Board approved the City's requested funding
agreement amendment to provide an additional $5 million in sales tax increment in Fiscal Years
2014 through 2018 and remove $5 million in sales tax increment from Fiscal Years 2031
through 2033. This request was approved because the City's actual sales tax collection growth
in Fiscal Year 2014 was 5.20%, well above the projected growth of 1.97%. As a result, 70% of
the actual sales tax increment collected in Fiscal Year 2014 was $882,784. When the actual
Fiscal Year 2014 sales tax growth is considered, the ten year historic sales tax growth rate is
2.15%. As a result, the available sales tax increment funding is projected to be more in each
subsequent fiscal year than anticipated and what was reflected in the original funding
agreement. The estimated sales tax increment revenue receipts for the City are shown in
following table.
Table 1
Estimated Sales Tax Increment Revenue Receipts to City of Dubuque
Original Estimated Amended Estimated Change in
Fiscal Year Sales Tax Increment Sales Tax Increment Estimated
Revenue Receipts Revenue Receipts Sales Tax Increment
Revenue Receipts
2015 $1,068,677 $1,784,299 $715,622
2016 $1,786,625 $3,084,781 $1,298,156
2017 $2,518,644 $3,915,672 $1,397,028
2018 $3,265,011 $4,764,427 $1,499,416
2019 $4,026,006 $4,764,911 $738,905
2020 $4,801,918 $4,801,918 $0
2021 $5,593,037 $5,593,037 $0
2022 $6,399,662 $6,399,662 $0
2023 $6,869,796 $6,869,796 $0
2024 $6,956,900 $6,956,900 $0
2025 $6,956,900 $6,956,900 $0
2026 $6,952,300 $6,952,300 $0
2027 $6,952,300 $6,952,300 $0
2028 $6,947494 $6,947494 $0
2029 $6,713,458 $6,713,458 $0
2030 $6,238,500 $6,238,500 $0
2031 $5,738,500 $4,397,435 ($1,341,065
2032 $4,328,480 $2,184,888 ($2,143,592)
2033 $3,032,469 $1,500,000 ($1,532,469)
2034 $1,347,501 $715,500 ($632,001)
Total $98,494,178 $98,494,178 $0
2
Through the agreement with the Iowa Flood Mitigation Board, the City will receive up to
$98,494,178.00 in sales tax increment revenue over a twenty-year period per the schedule
outlined in the City's Project Plan. There is a six month delay from the time sales tax quarterly
returns are submitted to the Iowa Department of Revenue and when the sales tax increment is
remitted to the City of Dubuque. The first sales tax increment revenue receipt was received on
September 2, 2014. Subsequent receipts will be received every three months.
The Iowa Flood Mitigation Board (the Board) has provided an amendment to the Bee Branch
Watershed Flood Mitigation Project, State Flood Mitigation Board Funding Agreement.
RECOMMENDATION
I respectfully recommend the adoption of the attached approving the amendment to the Bee
Branch Watershed Flood Mitigation Project, State Flood Mitigation Board Funding Agreement.
JML
Attachments
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Ken Te Kipper, Finance Director
Gus Psihoyos, City Engineer
3
Fields of Opportunities
STATE OF IOWA
TERRY E. BRANSTAD IOWA HOMELAND SECURITY AND is
GOVERNOR EMERGENCY MANAGEMENT DEPARTMENT
KIM REYNOLDS MARK J.SCHOUTEN,HOMELAND SECURITY ADVISOR
LT.GOVERNOR AND EMERGENCY MANAGEMENT DIRECTOR
I
k'
April 14, 2015
Teri Goodmann
City of Dubuque
50 West 13'Street
Dubuque, IA 52001
I
SUBJECT: Iowa Flood Mitigation Program Amendment Number One Agreement Document
Dear Ms. Goodmann,
The City of Dubuque has been approved for the Amendment Number One Agreement between the Flood
Mitigation Board and the City of Dubuque for use of sales tax revenues as Exhibit B (Amended#1)under
the State of Iowa Flood Mitigation Program.
I have included two original Amendment Number One Agreements for review, approval and signature
along with a return envelope. Please return both signed originals to our agency for execution. After the
agreements are signed by the Chair of the Iowa Flood Mitigation Board(Mark J. Schouten)we will then
mail one of the original executed Agreements to you for your records.
Any material changes to the scope of work or sales tax increment projections must have prior approval by
the Iowa Flood Mitigation Board. Please notify me if there are any anticipated changes.
If you have any questions or need assistance in any way please do not hesitate to call me at 515-725-9348,
or you may e-mail me at Dennis Harper@iowa.gov.
Sincerely,
r
�Y"sarper
State Hazard Mitigation Officer(SHMO)
Iowa Homeland Security and Emergency
Management Department(HSEMD)
7105 NW 70th AVENUE/CAMP DODGE/ BLDG.W-4/JOHNSTON, IOWA 50131-1824/515-725-3231
http://www.homelandsecurity.iowa.gov
Prepared By: Jennifer Larson, Budget Director, City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589-4110
Return To: Jennifer Larson, Budget Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589-4110
RESOLUTION NO. 138-15
A RESOLUTION AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE
AGREEMENT WITH THE STATE OF IOWA FLOOD MITIGATION BOARD WHICH
AUTHORIZES THE CITY'S USE OF SALES TAX INCREMENT FUNDING FOR THE BEE
BRANCH WATERSHED FLOOD MITIGATION PROJECT
Whereas, Six Presidential Disaster Declarations have been issued for flooding, severe
storms and tornados between 1999 and 2011 due to flash flooding; and
Whereas, the Bee Branch Watershed, which includes the City of Dubuque's most
developed areas where over. 50% of city residents either live or work, has experienced
flooding impacting thousands of properties and over seventy businesses; and
Whereas, the City Council of the City of Dubuque has adopted a drainage basin master
plan authored by HDR Engineering that outlines improvements to mitigate flooding
collectively referred to as the Bee Branch Watershed Flood Mitigation Project (the Project);
and
Whereas, the Flood Mitigation Program was established by the Iowa Legislature and the
Governor of Iowa to support community projects for the construction and reconstruction of
levees, embankments, impounding reservoirs, or conduits that are necessary for the
protection of property from the effects of floodwaters and may include the deepening,
widening, alteration, change, diversion, or other improvement of watercourses if necessary
for the protection of such property from the effects of floodwaters; and
Whereas, the City of Dubuque submitted an application to the Iowa Flood Mitigation
Board (the Board) requesting the use of $98,494,178 in sales tax increment funds for the
Project; and
Whereas, the Board, on December 4, 2013, voted to approve the City's application for
construction of the Project, subject to the requirements set forth in Iowa Code chapter 418
and the administrative rules promulgated under it and subject to the terms and conditions
set forth in an agreement; and
Whereas, the City Council, on February 3, 2014, adopted Resolution 31-14 authorizing
the execution of an agreement (the Agreement) with the Iowa Flood Mitigation Board
binding the City to the terms of the agreement as required for the City's receipt of up to
$98,494,178.00 in state sales tax increment funds for the Bee Branch Watershed Flood
Mitigation Project through the State Flood Mitigation Program; and
Whereas, the City of Dubuque submitted a request to amend the Agreement to the
Board to provide an additional $5 million in sales tax increment in Fiscal Years 2014
through 2018 and remove $5 million in sales tax increment from Fiscal Years 2031 through
2033; and
Whereas, the Board, on April 13, 2015, voted to approve the amendmentforthe change
in funding of the Project; and
Whereas, it is in the best interest of the City to enter into the Amended Agreement as
required for the City's receipt of the sales tax increment funding.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA AS FOLLOWS:
Section 1. That the Amended Agreement be approved.
Section 2. Mayor is hereby authorized to execute and deliver the Amended Agreement
and execute such other documents as the Iowa Flood Mitigation Board may reasonably
require that are necessary to bind the City to the terms of the Amended Agreement as
required for the City's receipt of $98,494,178 in sales tax increment funds for the Bee
Branch Watershed Flood Mitigation Project through the State Flood Mitigation Program.
Passed, approved and adopted this 20th day of April, 2015.
i'./?,6c.
Karla A. Braig, Mayor Pa) Tem
Attest:
Kevir(Firnstahl, Citylerk
Amendment Number One
AGREEMENT
Between
THE FLOOD MITIGATION BOARD
And
THE CITY OF DUBUQUE, IOWA
AGREEMENT NUMBER: 2013-0
PROJECT TITLE: Bee Branch Watershed Flood Mitigation Project
This is Amendment Number One to the above -referenced Agreement (AGREEMENT) between the Flood Mitigation
Board and City of Dubuque. The original AGREEMENT was executed on 2/10/14.
The Flood Mitigation Board, on April 13, 2015, voted to approve the Amendment Number One to Agreement between
the Flood Mitigation Board and the City of Dubuque, Iowa.
Article 5, APPROVAL OF USE SALES TAX REVENUES, of the said AGREEMENT is amended to read:
The Board hereby approves the use of sales tax increment revenues under Iowa Code chapter 418 to the maximum
amount of $ 98,494,178.00, payable over the term of this agreement and pursuant to the schedule as set out in the
attached Exhibit B, as amended during the term of this Agreement, all in accordance with and subject to the terms and
conditions of this Agreement, Iowa Code chapter 418, and applicable administrative rules.
All other paragraphs in said AGREEMENT remain unchanged.
IN WITNESS WHEREOF, in consideration of the mutual covenants set forth above and for other good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the parties have entered
into the above Agreement and have caused their duly authorized representatives to execute this Agreement.
CITY OF DUBUQUE, IOWA FLOOD MITIGATION BOARD
By:
r/ By:
1f Mark J. Schouten, Chair
Karla A. Braig,``Mayor Pro Tem
Date: April 20, 2015 Date:
Attest:
Kev'.. S. Firnstahl, ' ity ' 1"erk
Date: April 20, 2015
EXHIBIT B
(AMENDED #1)
SCHEDULE OF REMITTANCES OF THE CITY OF DUBUQUE
FOR THE USE OF SALES TAX REVENUES
FOR THE STATE OF IOWA FLOOD MITIGATION PROGRAM
FOR THE BEE BRANCH WATERSHED FLOOD MITIGATION PROJECT
CITY OF DUBUQUE
Flood Mitigation Program
2014
395, 704.12
201,5;
$'
2
2016
3,476,709.00
$'.
7:.
2018
5,173, 389.00
)19
92, 361, 00`
2020
5,175,452.00
2t
$
2022
6,787,982.00
3
4:i
2024
$
6,968,288.00
025
46.514.0'.
2026
6,957,577.00
2027
$'
,947,487.00
2028
6,947,500.00
2029.
•.500.000.00
2030
6, 000, 000.00
2031
,935,823.00'
2032
1,500,000.00
2033
1, 500, 000.00;,
2034
2035
$`
TOTAL
98,494,178.00