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2016 State Legislative Priorities Copyright 2014 City of Dubuque Consent Items # 4. ITEM TITLE: 2016 State Legislative Priorities SUMMARY: City Manager submitting the 2015 State of Iowa Legislative Priorities for adoption and presentation to legislators at the annual Legislative Dinner on November 23, 2015. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type ❑ 2016 State Legislative Priorities City Manager Memo ❑ Supporting Documentation Supporting Documentation THE CITY OF Dubuque U E 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: 2016 State Legislative Priorities DATE: November 12, 2015 Assistant City Manager Teri Goodmann has worked with City staff and partners to develop a recommendation on this year's State of Iowa Legislative Priorities. The priorities, as adopted by the City Council, will be presented to our legislators at the annual Legislative Dinner on November 23, 2015, at 6:00 p.m. at the Grand River Center. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:sv Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager THE CM OF Dubuque DUB TE p"� Masterpiece on the Mississippi 2007.2012 •2013 2016 State Legislative Priorities Table of Contents Artsand Culture....................................................................................................................... 24 Economic Development........................................................................................................... 2 Emergency Management— Homeland Securitv............................................................... 12 Historic Preservation .............................................................................................................. 19 Housing....................................................................................................................................... 10 HumanResources ................................................................................................................... 15 IowaCode Changes................................................................................................................. 17 LibraryServices ....................................................................................................................... 15 Parkand Recreation................................................................................................................ 21 Partnerships.............................................................................................................................. 30 Planning &Zoning ................................................................................................................... 18 PublicHealth ............................................................................................................................. 27 StateMandates......................................................................................................................... 13 StateTax Policy........................................................................................................................ 13 Sustainability............................................................................................................................. 26 Technology and Innovation .................................................................................................... 9 Transportation ............................................................................................................................ 6 1 Economic Development The role of city government in economic development is crucial. Economic activity requires roads, streets, airports, water and sanitation. Newjobs necessitate more and better housing. Growing businesses seek quality of life amenities for employees and families, such as parks, recreation and libraries. Protection and safety of property and life must be assured. This can only be accomplished with the strong support of an effective city government in partnership with local private sector and non-profit leaders and state and federal government officials. Tax Increment Financing (TIF) The Iowa Code provides that cities can use TIF for certain public and private economic development purposes once an urban renewal plan is approved and an urban renewal district established. The ability to use TIF to assist private economic development projects in urban renewal districts is an essential ingredient of the City of Dubuque's nationally recognized success, providing financing and incentive for private investment. The City of Dubuque has prioritized the redevelopment of our urban core; cities need tools like TIF to accomplish this. The Slum and Blight Urban Renewal TIF allows cities across the state to reclaim their urban cores, restore otherwise abandoned historic properties, and create more sustainable communities. TIF is perhaps the most important Smart Growth tool available to cities. Since the City of Dubuque began using TIF in earnest in the 1990's, there have been a total of 64 corporate projects which have had the benefit of $116,769,204 in direct TIF incentives. These projects have leveraged $468,636,760 in private investment. These projects have resulted in the retention of more than 2,800 jobs in Dubuque and the creation of 6,150 jobs. This does not include many of the jobs added to the downtown employment base where there was no direct TIF agreement with the employer but rather the projects were facilitated by loan pools and other methods benefiting from the Downtown TIF district. This has all worked because responsible elected officials, who while acting in an entrepreneurial fashion to encourage community growth, have used TIF, the City's only meaningful local economic incentive in a strategic fashion. Dubuque ranks third in the United States for actual job growth according the 2010 MSN/CareerBuilder.com. Forbes Magazine has ranked Dubuque first in the United States for projected job growth and 15th in the nation for"Best Places for Small Business and Careers." Comparing job growth from October 2013 to October 2014, Iowa had a net increase of 15,400 and Dubuque MSA had a net increase of 2,000. Dubuque's job growth was 13% of the State of Iowa. Dubuque is now at 61,600 employed up from 38,600 in the 1980's. From January 2011 through 2012, Dubuque created 12% of the net newjobs in the entire State of Iowa (+1,100 new jobs), with only 3% of the State's population. The prior year Dubuque created 1,200 net new jobs, which was equivalent to 11.2 % of the State's total job growth. This type of job growth is only possible with the use of TIF. Since TIF is really the only economic development financing tool available to Iowa cities, Dubuque often uses TIF as the local match required when we partner with the Iowa Economic Development Authority. This is certainly the case with the 1,300 jobs created by IBM, the over 200 jobs at Hormel (soon to be an additional almost 100) and the 317 jobs retained and created by A.Y. McDonald. Without the flexibility this tool provides, Dubuque would not have this kind of success in job creation and retention. A very important priority of the City of Dubuque, the Historic Millwork District, benefited initially with a $105 million investment of private and public dollars, rebuilding much of the street network, underground utilities, creating parking and renovating the Caradco Building (Schmid 2 Innovation Center) into 72 apartments, and 35,000 square feet of commercial and retail space. Two additional buildings requiring approximately $40 million in investment, with 92 additional apartments and thousands of square feet of commercial industrial space were renovated and came online in 2015. Ultimately, the entire Historic Millwork District will have easily over $200 million in investment leveraging new business creation and much needed workforce housing for Dubuque. This Historic Millwork District slum and blight subarea TIF was established in 2008. Legislative proposals which place restrictions on Slum and Blight Urban Renewal TIF Districts would rapidly dissolve the City's financial investment in this priority project for the City of Dubuque. The City's new 125 acre industrial area would not have been possible if the proposed legislation forcing "sun-setting" of economic development TIFs would be put in place. The City of Dubuque has successfully and responsibly used tax increment financing to create more jobs per capita than any other city in the State of Iowa. Proposed TIF reform that would prohibit the use of TIF revenue on public buildings, which would stop the creation of parking ramps (vital to the economic viability of downtown businesses!) and City efforts to restore the Historic Federal Building would be opposed by the City of Dubuque. The City of Dubuque understands the need for increased transparency, fastidious data collection and antipiracy language in TIF reform, but cannot support reform that limits or sunsets the City's use of slum and blight and economic development TIFs. Even in these areas, the language should be narrowly crafted so as not to stifle economic and community development activities by cities. No language should be included that could limit or destroy job creation and economic development potential that exists in current TIF laws. Requested Action: Support efforts to maintain Tax Increment Financing as an economic development financing tool. Oppose restrictions on use of TIF for public infrastructure and oppose the "sunsetting" of TIF districts. 3 City of Dubuque New Taxing Bodies Tax$- Retiring TIF Districts,in First Year of Expiration $1,58]$]6 S1.E00,000 •oxo,569]A]e a Ory,$519,153 %'ek,O3D •oxotl 53@b15 $I.C@.tlp :NICC,$6x591 pl$35AC3 S1.200,000 •�Q$3UA69 $I,1W,OD $a aGty,,$137, .an D,$2x9,539 $l,C@,tlp a[WMS�oS�zo'13,6]g]I •Gty,$]]3,313 a(gmM1y$13],615 �'� i fNlnty15?Alf a County,$101,091 a NICO,$ 6,10 700,000 •NIC4$10,39 •NIM$t4,218 $700,000 .Other.$10,01 •Omer.$11,832 5600.000 $aal5as 55@,0@ Se000@ $30al 5x@,a@ $aF18 5 Panned TeN-ax 5wM DICW-subeme Quebemr-i@5 4ryer-2@2 DIM-rrut Redmetlb -x0U B-ZOU D-xW2 iaMry BOYNe Total Annual Return to Schools, County& City=$3,766,044 The is whet pill go to the Taxing Bodies in the first year after expiration of Urban Reneml Dislrid. Baste on current 1102 rete of Taxing Bodies and 1/1/11 assessed value,even though It is expected that the assessed value could increase before the district mtpi ation. Also,there is still undeveloped ouredy in Tech Park South,Dubuque Industrial Center Weet-Subarea B,Subarea C&Subarea D.If Mose able were devebped before explosion at the same genal value of the current developrrrent the Tech Park south would generate $1,150,/58 in this fatal year(2019);DICW-Subarea B would generate$3,015,117(2020);DICW-Subarea C 52,055,916(2031)& Subarea D$1,570,898(3031).The polsalians are based on assessed values increasing 3%sada year. Border Communities Incentive In the 2006 Iowa legislative session, House File 2731 was approved to create the Targeted Jobs Withholding Tax Credit Program. The Iowa Economic Development Authority oversees this program. The Targeted Jobs Withholding Tax Credit Program is a program for cities located adjacent to neighboring states to remain competitive in attracting new jobs. Receiving project city status for this program will make incentives available in the amount of up to three percent of the wages paid by the company on new eligible jobs. This program is currently only available to four cities, Sioux City, Council Bluffs, Keokuk, and Burlington. This program should be expanded to more communities that fit the qualifying characteristics. This program would keep Iowa's communities that border other states more competitive when attracting new business to the state. Requested Action: Support efforts to expand this program to allow more communities that ft the qualifying characteristics to be eligible to receive the incentive. This program would help to keep Iowa's communities that border other states more competitive when attracting new business to the state. 4 Eminent Domain During 2006, the Legislature approved changes to the Eminent Domain Law. Included in the changes, and of particular concern, is the requirement that seventy-five percent or more of the area included in the urban renewal plan must consist of property in a slum or blighted condition at the time the plan was established in order for the entire project or acquisition plan area to be subject to condemnation by the municipality. We believe that a 51% threshold is more reasonable. Furthermore, the new language provides that the project or acquisition plan area shall only include the adjacent and contiguous parcels necessary for the completion of planned activities for a specific business or housing project. This language would be limiting for downtown development projects that may be larger in scope than just the parcels that meet the definition of slum and blight. Lastly, the burden for the use of eminent domain for airport project is increased by the requirement that the Board of Supervisors must hold a public hearing and pass a resolution unless the airport improvement is FAA-required. This creates additional layers of burden on a municipality. Requested Action: Support efforts to amend sections of the Eminent Domain Law to allow for changes as proposed by the Iowa League of Cities and noted above. State Historic Tax Credits The Iowa Historic Preservation Tax Credit was passed in May 2000 to promote investment in our historic resources in communities, codified in Section 404A.4. Rehabilitation of these resources contributes to the economic viability as well as the strength of our communities. The secondary impacts of this historic tax credit on our communities are countless. The program provides a tax credit of 25% of the qualified rehabilitation expenses for qualified projects. Thus, each credit represents an investment in our community of at least four times the amount of the credit. Additional revenues are generated through increased property taxes, income taxes, and sales taxes.The cap for the program is currently set at $45 million per year. Elm Dubuque has completed 33 projects to date using the State Historic Tax Credit program. Just over $42 million in SHTC funding has leveraged over$142 million in additional funding sources. And we have 20 more projects in the works, with an estimated $19 million in SHTC funding, which is expected to leverage approximately $57 million in other funds. These projects have added well over 2,000 permanent jobs to our economy, not including the construction jobs to complete the large projects. These 2,000 people would equate to an $80 million annual payroll. Critical workforce housing needs in the City of Dubuque make state historic tax credits and other financial incentives a top priority as the City works to promote redevelopment and reinvestment in our urban core. Recent concerns raised by the Iowa Department of Revenue have resulted in a slowdown of the State Historic Tax Credit program. 5 Requested Action: Joining with local governments across the state and private sector partners led by Smart Growth Development, work to strengthen and expand the State Historic Tax Credit program. Quality of Life and Community Enhancements Successful quality of life programs need continued funding, such as Vision Iowa, REAP, CAT funds, RECAT Iowa Great Places, the Iowa Main Street program funds, and tax credits for historic preservation. Requested Action: Protect and enhance economic development tools enabling cities in Iowa to promote economic improvement throughout the state. Transportation Southwest Arterial funding Dubuque is the regional economic center for the Iowa, Illinois and Wisconsin tri-state area. With local international companies and businesses such as the John Deere Dubuque Works, Nordstrom Distribution Center, Mc Graw Hill Publishing Company, AY McDonald Manufacturing, Flexsteel Industries, Kendall/Hunt Publishing and Hormel Food Corporation, a 21st century transportation infrastructure system is essential. In order to continue the consistent and strong economic growth and job creation in the tri state area, critical transportation infrastructure requires increased state and federal funding. Transportation projects and improvements in Dubuque include: Completion of the four lane South West regional connector Planning, design, ROW acquisition and construction of the East West Corridor Improvements and enhancements of the at grade railroad crossings in Downtown Dubuque Street improvements and more Requested Action: In order to increase transportation revenue for these and other important transportation projects the City requests support of the Iowa Department of Transportation Commission to maintain its current programed funding for the Southwest Arterial in the Iowa Five Year Highway Transportation Improvement Plan and increase the funding to ensure paving of a four lane arterial connector. In addition, the City supports language change in the Iowa Code to allow for periodical allocation of monies from the fund for the establishment, construction and maintenance of the secondary road system and municipal street system in exchange for retaining all or a portion of the federal aid road funds that would otherwise be allocated to cities and counties. 6 Iowa's Road Use Tax Fund (RUTF) Local governments recognize that local transportation systems carry great importance not only for public safety and quality of life, but also for mobility, commerce, community vitality and economic development. The transportation system is in demand 24 hours a day, regardless of its road and bridge conditions or other factors. When existing funding sources are inadequate to address failing or deteriorating infrastructure needs, local governments are faced with aging and limited infrastructure as well as safety concerns. While the State of Iowa's gas tax increase earlier this year will certainly boost current and near-future Road Use Tax Fund revenues, consideration needs to be given to future road funding needs and mechanisms as Iowa's drivers purchase fewer gallons of conventional vehicle fuels. Requested Action: Investigate alternative funding mechanisms to increase funding for Iowa's transportation infrastructure. Passenger Rail Through the Envision 2010 process, the Citizens of Dubuque have established a Passenger Rail Committee to support and promote the return of passenger rail service from Chicago to Dubuque. There is a Memorandum of Understanding with the State of Illinois to implement passenger rail service between Chicago and Dubuque. Currently funding provides for connection from Chicago to Rockford, Illinois. Requested Action: Support the return of passenger rail from Chicago to Dubuque. Airport Infrastructure Funding DBQ is in support of dedicating aircraft use tax revenue to the State Aviation Fund. We would also support and encourage all aviation registration fees and use taxes deposited into the State aviation infrastructure fund as the office of aviation is currently doing the job of collecting those taxes. Support vertical infrastructure funding for commercial and general aviation airports. Requested Action: Oppose language to remove Rebuild Iowa Infrastructure Fund (RIIF). Rely on the revenues generated by the existing tax structure with periodic fuel tax increases while maintaining the option for future funding. Requested Action: Maintain funding for the highly successful Commercial Service Vertical Infrastructure program at $2.OM for facility improvement projects at publicly owned, public use airports in Iowa. 7 Air Service Development Funding DBQ participated in meetings with Iowa Legislators and staff along with the seven other commercial airports in developing a series of recommendations to the Iowa Legislature to promote, sustain, and grow commercial airline service in Iowa. This was the result of the 2014 Iowa DOT Omnibus bill, Senate File 2355, forming the Iowa Air Service Retention and Expansion Committee to develop a plan for the retention and expansion of passenger air service in Iowa. Several specific actions were identified below: Requested Action: Encourage airports to conduct local passenger service strategic/contingency planning and assist airports as appropriate (Airports need state funding assistance in these plans and studies) Strengthen advocacy for federal programs - Arrange meeting with Iowa DOT, air service communities, and federal delegation Airport Improvement Program - Long-term reauthorization with increase in funding levels — Stop diverting trust funds intended for airport projects to FAA operations Essential Air Service Program - Lighten restrictions of eligibility requirements to assist existing commercial service airports in maintaining passenger air service. Airport Improvement Program - Stop diversion of use tax on aircraft sales from the State Aviation Fund to the General Fund Aviation Tax Policy Iowa airports and aviation industry have requested sales and use tax policy changes to remain competitive with our neighboring states. Our customers are traveling to Minnesota and elsewhere for work on their aircraft which used to be performed in Iowa. Unless this trend is reversed, this will lead to loss of jobs, closed businesses and weaker aviation industry. Requested Action: Aviation related taxes and tax policies must be competitive and comparable with neighboring states. Effective Control of Wildlife Aviation Hazards Deer and other animals continue to be hazards to aviation in our state. Pilots and airport managers report an alarming increase in the number of runway incursions by wild animals. Public airports should be allowed to engage in timely and appropriate depredation efforts for their facilities. Shotguns lack the range for large open spaces like airports. The elimination of the wildlife hazards should not be considered hunting and the techniques for the elimination of the hazard should include any weapon legal anywhere in the State of Iowa at the discretion of the airport management. We are not hunting, we are removing a threat to life and property. 8 Requested Action: A change to the shooting permit language is needed. Specifically items (9) "Legal weapons and restrictions will be governed by 571-106.7(481.A). Center-fire rifles are currently legal only in the southern two tiers of counties in Iowa." Also requiring changes is line (10) "All other applicable deer hunting rules and pertinent license requirement apply to shooting permits." Allow airports the use of rifles to eliminate wildlife hazards to flight. Protect Airport Zoning and Airspace Protecting and preserving airport approach and departure paths is one of the main reasons airport protections were placed in the Iowa Code many years ago. The safety and protection of the public, pilots and passengers must not be placed secondary to tower siting considerations. Requested Action: DBQ opposes any efforts to eliminate, supersede, or lessen the zoning and airspace protection abilities of local communities for their public airports. Technology and Innovation Broadband Infrastructure Dubuque supports state efforts to expand broadband access and speeds in the state. Like water, sewer, energy and roads, affordable access to globally relevant internet speeds is a minimum infrastructure necessary to the quality of life of our families and the competitiveness of our businesses. State policy should support and incent public/private collaborations to accelerate broadband access and services. State policy should support innovations in new technologies and flexibility in existing systems like the Iowa Communication Network (ICN). State policy should fund innovative approaches by local communities to bring globally relevant broadband speed and services to under-served and hard to serve populations. State policy should not hamper local municipalities from directly addressing the issue and providing service to citizens where appropriate. Also, while we support the concept of improved efficiency and transparency in the regulatory process to encourage private broadband investment, we ask that care be taken with State policy to assure there is sufficient flexibility for local government to be able to respond to local complexities and needs with permitting, licensing and regulatory decisions. Lastly, if the State chooses to "target' its broadband efforts, those targets should not be based on artificial distinctions of "urban versus rural' or "small versus large", but rather on key consideration of whether in a specific location there is access to globally competitive infrastructure in terms of broadband access, choice, speed, redundancy, safety and cost. Requested Action: Continue to support policy and funding for expansion and universal access to broadband in the State of Iowa. 9 Housing ROSE Program The Iowa Renter to Ownership Savings Equity (ROSE) Program ("Program") is only for low-income tenants who are qualified under the LIHTC Program. The Owner shall elect the 40/60 minimum set aside for IRS elections and rent all units at sixty percent (60%) or below AMI. This Program cannot be used in conjunction with State HOME Program funds. The Program has been established as an incubator to help tenants chosen for the Program ("Qualified Tenants"), move into homeownership. Qualified tenants will have the opportunity to buy their home of choice after the initial lease period or to purchase the Qualified Tenant's rental unit in the project at the end of the 15 year compliance period ("Compliance Period"), pursuant to IRC 42(h)(8)(1). The Program Owner will rent single-family homes located within a project to persons interested in first-time homeownership under the Iowa ROSE. A desire for homeownership and a demonstrated willingness to address obstacles in obtaining and owning a home will be the focus of tenant selection and the services offered to the tenant. The Program is intended to help Qualified Tenants gain knowledge, training and savings to assist with home purchases Currently the ROSE program only applies to new construction. Requested Action: In order to contribute to neighborhood restoration and revitalization, we are requesting that this program be considered for rehabilitation of existing properties. This would provide the opportunity to not only revitalize the neighborhood but would also promote homeownership in these existing properties. Doing so would allow residents to live and stay in their communities, their neighborhoods and provide a more cost effective approach to rehabilitation. Smart Growth Workforce Housing Grant Program Creation of the Smart Growth Workforce Housing grant program under the discretionary policy of the Iowa Finance Authority provides greater opportunity for the City of Dubuque and its partners to stabilize the community and will prioritize environmentally-sustainable development and will promote economic development. This grant program was established in the 2010 legislative session. Definition Smart Growth practices are settlement patterns that avert urban sprawl by encouraging more compact development, greater transit use, and enhanced environmental protection. Workforce housing is normally defined as housing affordable to households earning between 80 percent and 120 percent area median income (AMI). Affordable, in the housing industry, means a household pays no more than 30 percent of its annual income on housing. Smart Growth Workforce housing is the combination of these concepts —the development of sustainable, transit-oriented housing that is affordable for our workforce. 10 What can our workforce households afford to pay for housing? "The National Housing Act of 1937" created the public housing program... [wherein] a tenant's income could not exceed five to six times the rent; and by 1940 income limits gave way to the maximum rent standard in which rent could not exceed 20 percent of income— in practice, the same as the predecessor income limit standard. Over the decades, that percentage has risen, so that by 1981 the threshold was set at 30 percent of income. Households that spend over 30 percent of income on housing are considered cost burdened. Why the increase? Was it truly deemed a more appropriate benchmark? Or was it simply in response to an increase in housing costs and the government's inability to subsidize housing for an ever-growing number of struggling households? Over the past decade, rising housing costs have outpaced the average salary across the United States— in some areas by two- to five-fold. Many workers in urban areas have dealt with this discrepancy by living far from their downtown jobs or by living in housing they can't afford. Unfortunately, the former solution is offset by an increase in transportation costs. And what is the price we pay for the latter solution? "Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care." In fact, a full 37% of homeowners and 50% of renters today are cost burdened. Fortunately, housing costs in smaller urban and rural areas are often within closer reach for workforce households. However, in areas where vacancy rates are low— calling for the production of new units —development of quality housing is financially impossible, as operational income on the properties is not enough to cover interest payments on the project mortgage. Low local rent levels, although beneficial for tenants, preclude developers from creating new units, despite a community's housing shortage. For this reason, many developers have turned to the LIHTC program to make their projects financially feasible, whether or not this fulfills the community's particular housing demand. Meanwhile, the recent economic downturn and housing market woes have combined to create a new class of workers, forced into the rental market because they do not qualify for a mortgage. Displaced workers with homes that won't sell, families who've had their homes foreclosed, young professionals with student loans, and households that might otherwise be able to afford mortgage payments if only they could come up with the higher requisite down payment demanded in a tight lending climate —all of these are moving into the rental market. This creates a rather sudden increase in the demand for rental residential units for households that are neither wealthy, nor are they eligible for low-income housing. The creation of affordable housing options for our workforce allows communities to attract and retain quality employers. If the only housing that developers can afford to produce is intended for low-income or wealthy households, we should not be surprised to see such a disparity in our communities' income levels. To have a healthy mix of incomes, we must have housing options available for all income levels. Requested Action: Fund the Iowa Finance Authority Smart Growth Workforce Housing grant program. Workforce Housing Tax Credits The "sun-setting" of the Iowa Economic Development Authority's Enterprise Zone program in 2014 resulted in the creation of two new tax credit opportunities under the High Quality Jobs Program; one for economic development and the second for workforce housing. The City of Dubuque supported this policy decision in the 2014 legislative session however some refinement of the workforce housing tax credit program will be necessary in the 2016 legislative 11 session in order to meet the demand identified in the State's workforce housing study completed in 2012. The legislative changes in 2014 expand access to the worthwhile housing program, but the cap is unnecessarily limiting. Requested Action: The City supports moving the workforce housing tax credits out from under the aggregate Iowa Economic Development Authority's Economic Development Tax Credit Cap. The workforce housing program is a housing program and not a direct economic development incentive and should not be restricted as such. Emergency Management - Homeland Security Flood Mitigation Program Federal Emergency Management Administration has asserted that for every one dollar expended in disaster mitigation programs/projects, taxpayers save four dollars in recovery costs. The newly established State Flood Mitigation program is designed to leverage local and federal dollars with state financial assistance and is funded up to $600 million over the next twenty years. This amount will most likely be insufficient in addressing the flood mitigation infrastructure demands of Iowa cities. Requested Action: We urge legislators to continue to appropriate funds annually to the flood mitigation account in order to support local governments faced with high costs of these public infrastructure flood mitigation programs in order to protect the lives and property of Iowa citizens. Combined Emergency Communications and Emergency Operations Center Dubuque County has experienced eight presidential disaster declarations since 1999. Increased frequency and impacts of disasters on the City of Dubuque has created the need for expanded facilities. Combining emergency operations and communications will deliver services more effectively and efficiently to citizens of Dubuque and Dubuque County. Emergency Operations Centers have been in place throughout the state of Iowa for decades. The City of Dubuque's Emergency Operations Center is currently located at the Dubuque Emergency Responder Training Facility. It had been previously located in the Dubuque Fire Headquarters basement since the mid-twentieth century. EOCs were built during the Cold War and with a focus on civil defense. Today, with more frequent and extreme weather events as evidenced by Dubuque's high number of Presidential Disaster Declarations, demand for a new combined center is evident. The Emergency Communications Center is located in the Dubuque County Law Enforcement Center. It is located in the middle of the building and is restricted for future growth. Currently there are 4 console positions and with the numbers of calls and the severity of some of them, there is a need to have additional capacity for call taking and dispatching. The Center has been remodeled several times and future expansion is limited. Federal Mandates for P25 radio systems and the expiring life expectancy of current radio system creates the need to update Dubuque City/County's radio system within the next two years at a cost of$3-9 12 million. Updating at current location still creates restrictions on growth and capabilities during high volume times and disasters. In order to respond to the well-being and safety of the citizens of Dubuque, and to the increased demand for services created by more frequent disasters, and in order to replace aging and inefficient facilities, efforts are underway to explore funding opportunities that would enable the creation of a combined Emergency Communications and Emergency Operations Center. The State of Iowa has partnered with many larger city/county governments to assist in funding combined emergency communications centers and emergency operations centers. Requested Action: Work with area legislators to explore opportunities for partnership and funding for a combined Emergency Communications and Emergency Operations Center. Support increasing E911 Surcharge funding percentage to get the E911 Funds back into the local's hands to assist local E911 Service Boards with maintaining 911 systems. State Mandates Cities are often faced with implementing mandates from the state and federal governments without receiving the necessary funds for implementation. Requested Action: Enact legislation that exempts local government from providing any new service or engaging in any new activities mandated by the state if the state does not provide full funding for the mandated additional staff, equipment and infrastructure. State Tax Policy Property Tax The current tax structure for state and local governments is a mix of tax laws, rates and policies that do not provide for a fair and consistent tax system. The Iowa League of Cities and the Iowa State Association of Counties (ISAC) have identified key areas needing revision for a comprehensive tax reform in Iowa. They include: 1) changes to assessment and valuation procedure, 2) changes to city and county budgeting processes, 3) developing an alternative to current property tax limitations, and 4) elimination of the rollback formula and homestead exemption. Requested Action: Work with the Iowa League of Cities, the Metropolitan Coalition and ISAC to approve legislation to design a tax structure that provides tax equity and policies that are consistent with an overall direction for state and local government taxation. 13 Commercial Property Tax Reform and Backfill Legislation providing for commercial property tax reform passed in the Iowa Assembly in 2013. This legislation included language providing for cities in order to protect local residential taxpayers would not bear the tax burden of this reform bill. Requested Action: Continue to hold Iowa cities and residential property tax payers harmless for the backfill created by the commercial property tax reform legislation. Local Option Sales Tax The State should give consideration to increasing the allowable local option sales tax from 1% to 1.5%. This would allow local governments more flexibility to deal with any negative impacts property tax reform may cause. In the case of Dubuque, an increase of 0.50% in local option sales tax would generate approximately$4 million dollars, half of which is used for property tax relief. Requested Action: Increase the allowable local option sales tax from 1% to 1.5%. Repeal Amended Administrative Rule ARC2178C Recent actions by the State Administrative Rules committee have preempted the actions of the Legislature in defining Iowa Tax Code. Consequences of this action by the Administrative Rules Committee will have an impact on City of Dubuque revenues and specifically have an adverse impact on the Flood Mitigation Program of harvesting sales tax increment to pay for bonds issued. Requested Action: Seek legislation to disapprove of any amended revenue rules adopted by the Iowa Department of Revenue as proposed in ARC 2178C that "expand the number of items that qualify as exempt computers, machinery, or equipment" in Iowa Code Chapter 423, which is how the proposed rules described what they are intended to do. Assessor's Bill Property tax experts or representatives are now part of the tax appeal process. A tax representative can file an appeal for a large commercial property under a contingency basis, receiving their pay based on a percentage of the property tax savings they can achieve for their client. In many of these cases little or no money is expended by the taxpayer. The representative files a protest with the Board of Review and supplies little or no information to the Board. The Board may deny the protest but the tax representative will file a protest to either District Court or the Property Assessment Appeal Board. At this point the tax representative may produce more information or they may try to negotiate a settlement. On the assessor's side it may be very costly to hire appraisals and fight this out in Court. A single appraisal for a large Commercial or Industrial property will easily exceed $5000. Also, many appeals to the Board of Review are filed at the last minute with a statement such as information to be presented at hearing. Many appellants never provide the information or 14 provide it very late in the Board of Review session so the Board is unable to reach a well- founded conclusion. Requested Action: Request the Iowa Legislature to limit appeals to District Court and the Property Assessment Appeal Board to matters and information that were presented before the local Board of Review. Land Banking In order to return blighted and abandoned properties to productive use quickly, states have passed legislation that streamlines the tax foreclosure process by giving ownership of these tax- reverted properties to the county treasurer sooner and allowing city, county or state land banks to purchase these properties earlier in the tax foreclosure auction process. Further legislative reform in these states has redirected money collected from unpaid and delinquent property taxes toward land banks for purposes of funding the land banks and for the purchase of tax- reverted properties. The City of Dubuque will explore the formation of a land bank that would purchase tax-reverted properties through the tax foreclosure process. The land bank would maintain these properties until purchase by a responsible buyer, ensuring the properties' return to productive use. Requested Action: Support the formation of a City of Dubuque Land Bank and work with the Iowa League of Cities, the Metropolitan Coalition and ISAC to approve legislation redirecting money collected from unpaid and delinquent property taxes toward the City of Dubuque Land Bank for funding and for the purchase of tax-reverted properties. Library Services Fully Funding Enrich Iowa Program Enrich Iowa is a state aid program for Iowa's libraries. Until recently, Iowa was one of eight states without direct state aid to libraries. Current state funding is at $1 million statewide versus the recommended $3 million for full funding. If Enrich Iowa were fully funded, the Carnegie- Stout Public Library could realize a significant increase annually in state aid. Requested Action: Support efforts to increase funding for the Enrich Iowa program. Human Resources Municipal Fire and Police Retirement System of Iowa Police and firefighter pensions are funded through the Municipal Fire & Police Retirement System of Iowa (MFPRSI). Employees contribute a fixed 9.4 percent of their salary, while their 15 employers contribute at a variable rate, with a statutory minimum of 17 percent. The problem for city budgets is that the employer contribution is on the rise. The city contribution rate is set by the nine-member MFPRSI board to meet actuarial requirements. The board includes four members representing police and firefighters, four members representing cities, and one private citizen — all serving four year terms. The employer contribution rate was 17 percent from fiscal years 1997 through 2003. As a result of market crashes after the September 11, 2001 attacks, it was gradually raised to 28.21 percent in Fiscal Year 2006 before again dropping to the statutory minimum in Fiscal Year 2010. Since then, it increased to 19.90 percent in Fiscal Year 2011, 24.76 in Fiscal Year 2012, 26.12 percent in Fiscal Year 2013, 30.12 percent in Fiscal Year 2014 and 30.41 percent in Fiscal Year 2015. The Fiscal Year 2016 contribution rate will decrease to 27.77 percent and will continue to decline thereafter. The problem with MFPRSI is largely about the variability of the contribution rate. Cities' IPERS contribution rates since 1994 have never been below 5.75 percent and never been above the current 8.93 percent— a difference of 55 percent. With MFPRSI during the same period, however, the difference between the statutory minimum and the maximum (30.41 percent in Fiscal Year 2015) is almost 79 percent. Another small but contributing factor is the state's decision to phase out payments to MFPRSI. At one time, the state contributed 3.79 percent of payroll to the system— an amount that would be more than $9 million now. Then the contribution level became a flat $2.7 million — and it's dwindled since then. The state used to contribute $1.5 million a year and now they contribute zero. In a larger context, the public-safety-pension issues relates to local control. Cities cannot bargain with police and firefighter unions on pensions, yet they have to fund them at state- mandated levels. That is particularly relevant in a legislative session with expected proposals to limit local-government revenue — including significantly reducing commercial property-tax rates and cutting maximum annual agricultural-and residential-property-tax increases to 2 percent from the current 4 percent. Requested Action: The State of Iowa shall fund their obligated percentage for their share (3.79%). Change legislation to lift the cap for employee contribution (City contribution rose 79% in 5 years, employees should help with this cost). Consider reducing enhanced benefits for new employees coming into the system. 411 Subrogation Currently in Chapter 411, cities are not allowed to seek reimbursement from Third Parties for costs incurred for Police and Fire injury and illness claims. As such, a Police or Fire employee may collect against the City for an injury or illness claim and collect a second time for the same incident against a Third Party. If the employee is successful in getting payment from the Third Party, the City is currently not able to obtain reimbursement (subrogate) from the Third Party payment. Requested Action: Amend Chapter 411 to allow cities to seek reimbursement from third parties for costs incurred for Police and Fire injury and illness claims. 16 Seasonal Employees Currently, temporary employees that accept a job that starts on a specific date and ends on a specific date are eligible to collect unemployment. For example, temporary employees hired for three or four months to mow lawns during the summer are allowed at the end of the summer to collect unemployment even though they know the job is temporary when hired. This puts a costly burden on the employer. Requested Action: Amend the unemployment law so that temporary employees are not allowed to collect unemployment. Iowa Code Changes Authority to Petition for Title to Abandoned Lots A gap has been identified in Iowa Code, Chapter 657A; while cities can petition for title to abandoned residential, commercial, and industrial properties with buildings, cities have no authority under 657A.1 OA to petition for title to abandoned lots. Abandoned lots can be time consuming and expensive for cities to maintain. Requested Action: Include abandoned lots in Iowa Code, Chapter 657A and allow cities to petition for title to abandoned lots as well as abandoned residential, commercial and industrial properties with buildings. Underage and Binge Drinking Current legislation provides for a penalty to be placed upon the establishment that serves minors. However, only a simple misdemeanor penalty is placed upon the underage person attempting to purchase alcoholic beverages. This does not discourage this problem, which is particularly prevalent in college-age students. In an effort to combat underage consumption and "Binge Drinking" by our college age population, we would ask legislative consideration to increase the simple misdemeanor penalty found in Iowa Code Chapter 321.216 and 123.50 to a higher penalty. Requested Action: Pass legislation to increase the simple misdemeanor penalty found in Iowa Code Chapter 321.216 and 123.50 to a higher penalty. Eliminate "Good Moral Character" language from Iowa Code One of the criteria for the issuance of a State of Iowa liquor license is determined by "Person of Good Moral Character" as defined in State of Iowa Code 123.3 (26)(d). The State takes into consideration the local municipality's interpretation of"Person of Good Moral Character" prior to issuing a liquor license. 17 Requested Action: Urge legislators to eliminate "good moral character" language and replace it with objective standards. Adult Entertainment The City supports efforts by city attorneys to create legislation that would allow the city to regulate adult entertainment. Draft legislation would provide that cities and counties would regulate establishments that offer, allow or permit nude or semi-nude dancing. Requested Action: Support legislation drafted by city attorneys of Iowa giving the City authority to regulate adult entertainment establishments. Fantasy Gaming Gaming revenues in the state of Iowa continue to experience negative impacts as a result of Fantasy Gaming. Fantasy Gaming could yield increased state and local revenues if licensed through Iowa gaming facilities and authorized in the Iowa Code section 99F. Requested Action: Support regulation of Fantasy Gaming which could yield increased state and local revenues if licensed through Iowa gaming facilities and authorized in the Iowa Code section 99F. Planning & Zoning Expand Cities' Extraterritorial Jurisdiction Cities have extraterritorial jurisdiction (ETJ) for up to two miles from their corporate limits for subdivision review and approval only if the County has zoning for the rural areas. Extending the cities' ETJ to include review and approval of zoning changes would facilitate planned and managed growth. Legislation should provide incentives for governments to voluntarily plan together and identify recommended land use impact to be considered during the planning process. The League supports legislation that expands land management practices such as ETJ of cities to include review and approval of zoning changes. Requested Action: Support legislation enabling cooperative planning and effective land management practices. New State Law: Payday Lenders Payday loans are defined as small, short-term, unsecured loans, and are sometimes referred to as cash advances. Payday loans generally require that the consumer have a previous payroll and employment record, generally charge a much higher interest rate than a standard bank loan, and carry a substantial risk to the lender. Payday loans are packaged as short-term loans due on a borrower's next payday, but in reality, borrowers are indebted far longer and pay far more than advertised. The average loan requires 18 one-third of a borrower's biweekly paycheck, exceeding what most can afford without having to borrow again. Opponents of payday lenders recommend that cities and states regulate the industry by capping interest rates, requiring credit checks for patrons and by implementing zoning regulations. In Iowa, many cities have adopted separation requirements for the location of payday lenders; however, zoning to separate payday lenders has little effect on existing businesses or on consumers using an existing business or an on-line resource. Iowa communities cannot regulate interest rates or prohibit payday lenders. Since 2011, Pew Charitable Trust has conducted extensive research on payday, auto title, and similar loans, and found that these products suffer from unaffordable payments, deceptive business practices, and excessive prices. The Pew Charitable Trust has these five policy recommendations to minimize harm to consumers and make small-dollar loans more affordable: 1. Limit payments to an affordable percentage of a borrower's income. Monthly payments above 5% of monthly pretax income are unaffordable for most borrowers. Loans requiring more should be prohibited unless rigorous underwriting shows that the borrower can pay the loan while meeting other financial obligations. 2. Spread costs evenly over the life of the loan. Front-loading of fees and interest should be prohibited. Any fees should be paid evenly over the life of the loan, and loans should have substantially equal payments that amortize smoothly to a zero balance. 3. Guard against harmful repayment or collections practices. Policymakers should prevent or limit the use of postdated checks and automatic withdrawals from borrowers' bank accounts. They should also make it easier to cancel automatic electronic withdrawals and protect against excessively long loan terms. 4. Require concise disclosures of periodic and total costs. Loan offers should clearly disclose, with equal weighting: the periodic payment schedule, the total repayment amount, the total finance charge, and the effective annual percentage rate (APR) inclusive of all fees. 5. Continue to set maximum allowable charges. Almost every state sets maximum allowable rates on some small-dollar loans because these markets serving those with poor credit histories are not price competitive. Policymakers may limit rates to 36% or less if they do not want payday lenders to operate, or somewhat higher if they do. Requested Action: Pass legislation to implement the policy recommendations listed above for payday lenders. Historic Preservation Restore the Historic Site Preservation Grant Program (HSPG) The State of Iowa needs to restore funding to the Historic Site Preservation Grant Program (HSPG). This program was the only "brick & mortar" fund to encourage cultural growth and development throughout the state of Iowa. The Historic Site Preservation Grant provided funds to acquire, repair, rehabilitate, and develop historic sites that preserve, interpret, or promote 19 Iowa's cultural heritage. Projects funded by this program had to promote an understanding of the record of human experience within Iowa. All HSPG projects were limited to work on 'Vertical infrastructure,"which is defined in Iowa Code Chapter 8.57 as"land acquisition for construction, major rehabilitation of buildings, all appurtenant structures, utilities, and site developments." The maximum allowable grant request was $100,000. The minimum allowable grant request was $40,000. Projects required dollar-for-dollar cash match. Requested action: Restore State funding for the Historic Site Preservation Grant Program (HSPG). Property Owners on Historic Preservation Commissions Section 303.34 of the Iowa Code requires that "At least one resident of each designated area of historical significance shall be appointed to the commission." This requirement is problematic for the City of Dubuque's Old Main Historic District, which is primarily commercial. It would be beneficial for the City in the recruitment and retention of commissioners to be able to appoint property owners to represent historic districts. Furthermore, since historic preservation regulations apply to the rehabilitation, renovation and restoration of property, allowing property owners to serve on the commission would be appropriate. Furthermore, some Iowa cities are experiencing burgeoning commissions as historic districts are designated and representatives of each district are I . appointed. To avoid "over-populating" a commission, allowing a majority of the districts to be represented on a historic preservation commission would be appropriate. Requested Action: Enact legislation allowing property owners to represent a majority of the historic districts on the Historic Preservation Commission. Appeal of Actions by Historic Preservation Commission Section 303.34 of the Iowa Code states that an aggrieved party may appeal the action of a historic preservation commission to the City Council, and then to district court. The City Council, like the court, has to consider whether the commission exercised its powers and followed the guidelines established by law and ordinance, and whether the commission's action was "patently arbitrary and capricious." This process places the City Council in the difficult and uncomfortable position of interpreting technical guidelines and determining their appointees "arbitrary and capricious." The City Council would support an alternative process. Requested Action: Consider legislation providing an alternative appeals process regarding an action of the historic preservation commission. 20 Park and Recreation Parks to People Initiative The Iowa Parks Foundation has been working tirelessly to create economic and recreational facilities opportunities to grow all regions across the State of Iowa. The Jones, Jackson and Dubuque county region was selected for the Iowa Parks Foundation's pilot project. The pilot project- Parks to People- aims to better connect state, county and city regional park systems to local communities. The initiative will also beautify and improve state, county and city parks to ensure Iowa will become a premier parks region in the Midwest. Parks to People is also a quality of life program for the citizens of the State of Iowa and an economic development and tourism enhancement initiative with a focus on completion by the one hundredth anniversary of the Iowa parks system in 2020. As a part of the first pilot region (Dubuque, Jones and Jackson counties), parks in the region received $1.9 million in state appropriation and has been assisting in raising an additional 5:1 match which will include financial contributions and volunteer donations of time, talent and resources. The first project was completed at the EB Lyons Interpretive Center. This acquisition and development of 52 acres next to the IDNR Mines of Spain Recreation Area was just dedicated in August of 2015. Future projects are being planned and implemented now. Requested Action: The City of Dubuque supports the regional Parks to People effort and promote the goals of regional collaboration: economic development, quality of life, wellness, education, arts and culture and outdoor recreation. In addition, the City of Dubuque, as a regional partner, serve on the steering committee and advocate for a dedicated fund of$70 million dollars be established for Parks to People at the State Dept of Natural Resources. Increased/Stable Funding and Staffing for Mines of Spain State Recreation Area The ability of 1,400 acre Mines of Spain State Recreation Area near Dubuque to remain a focal point for environmental and cultural educational programs and interpretive activities for the tri- state area of Iowa, Illinois, and Wisconsin is seriously threatened by tenuous State funding. Local Response to State Needs The Mines of Spain is a regional destination where visitors and residents can reconnect with the natural, cultural and ecological aspects of the park through interactive and comprehensive outdoor and indoor learning opportunities. The Mines of Spain and the E.B. Lyons Interpretive Center currently serves over 250,000 visitors annually and provides hundreds of programs for school aged children, college students, youth groups and families. When more space was needed at the Interpretive Center, the Friends of the Mines of Spain (FOMOS) planned and coordinated an expansion that updated and more than doubled the 21 original space for educational purposes, raising $1.8 million in private, local, state and federal funds. The award-winning LEED-certified Interpretive Center now welcomes visitors to one of the region's best-conserved natural and cultural resources, where people can explore the history and natural riches of the park. Working with the IDNR, the City of Dubuque, the FOMOS, private donors and the Iowa Natural Heritage Foundation have raised over $1.98 million to acquire and develop a 52-acre addition adjacent to the Interpretive Center. A Unique State Park with National Park Credentials The Mines of Spain State Recreation Area includes woodlands, prairie, and bluff lands that overlook the Mississippi River along a 3-mile shoreline. This state park is a National Historic Landmark and a state preserve. Trails connect visitors to a farm site, forests, prairies, archeological sites, and wetlands. It also boasts some of the most diverse ecological habitats ranging from blufflands that overlook the river to tall grass prairies, forested woodlands and wetland. This National Historic Landmark also contains thousands of years of human history dating from the early Mississippian period through the early 20th century. Mounds, village sites, rock shelters, trading post sites, and campsites dot the landscape. The Mines of Spain Recreation Area was designated in 2005 as a Silos and Smokestacks National Heritage Area Site. State Support for Investment and Operation The IDNR, the City, and the Friends group have an excellent track record as partners. This partnership success can continue with the increased and stable funding for the operation, maintenance, and staffing of the Mines of Spain. Success, we believe, will be reached with asset management funding from secure State funding sources to enable us to fully use the expanded Interpretive Center and park area. With stable State funding, Park staff can maintain the Mines of Spain as the local, regional, state and national treasure it is and should remain. The outcome is a place for expanded education, increased experiences for the visitor and heritage tourism to attract more visitors to the state. Without this increased/stable funding the ability to use and appreciate these newly built and acquired facilities/land are seriously threatened; past investments are at risk for being wasted. Requested Action: Increased state supported funding for assets as well as park staffing for the Mines of Spain State Recreation Area especially because there are active local partners in the Friends of Mines of Spain and the City. Increased funding of REAP (Resource Enhancement and Protection) REAP stands for Resource Enhancement and Protection. It is a program in the State of Iowa that invests in, as its name implies, the enhancement and protection of the state's natural and cultural resources. REAP is funded from the state's Environment First Fund (Iowa gaming receipts) and from the sale of the natural resource license plate. The state legislature sets the amount of REAP funding every year. Interest from the REAP account and receipts from the sale of natural resource license plates add about $469,000 to this appropriation for a total of$16.47 million a year. 22 In the last two years, REAP has been appropriated $12 million and $16 million, compared to the 25 year average of $11.1 million. REAP has been used extensively in Dubuque for land acquisition and trails. Most recently it was used to acquire an adjoining property to the Mines of Spain State Recreation Area and extension of the Northwest Arterial Trail which directly connects to the Heritage Trail. Both benefit tourism and connecting people to the outdoors with active recreation. Requested Action: Request that the Iowa Legislature work to increase REAP to full funding of $20 million. Natural Resources and Outdoor Recreation Trust Fund The Iowa Legislature has a great opportunity to fulfill its promise to Iowans to protect Iowa's land and water by passing a measure that funds the Natural Resources and Outdoor Recreation Trust Fund, also called Iowa's Water and Land Legacy. In 2010, over 60% of Iowa voters supported creation of the Fund to provide reliable and dedicated funding for the protection of water quality, conservation of agricultural soils and improvement of natural areas such as fish and wildlife habitat. However, no money will go into it unless the Legislature raises the sales tax. If raised, the first three-eighths of the tax will go toward the Trust Fund. It was reported that this would generate about $150 million a year. Once funded, the Trust Fund guarantees that money in the Trust be allocated as shown in the graph. REAP Soil & Water Conservation ' Local Conservation Partnerships Habitat, Parks & Preserves Watershed Protection Trails Lake Restoration Our most productive soil is being lost at an alarming rate, threating the economic engine that is Iowa's family farms. Funding the Trust Fund will provide protection of these resources for future generations by: • Providing significant funding for investments in voluntary soil conservation practices and technology that can improve yields and profits on Iowa farms. • Fostering and leveraging partnerships between agriculture, the non-profit and private sectors and government for implementation of water quality and soil conservation practices. 23 Allocating 33% of the funding to voluntary soil and water conservation and local conservation partnerships. The Trust Fund will also allow for investment in natural approaches to flood prevention that can improve water quality while protecting our farms, cities and neighborhoods from future flooding. Outdoor recreation provides real economic benefits to Iowa's communities, particularly rural ones by contributing millions in local and state tax revenues, providing jobs and generating billions of dollars in Iowa's economy. • Hunting, fishing and wildlife watching generate $1.54 billion per year in Iowa. This includes $974 million in local retail sales, creating and supporting more than 17,800 jobs. • Hunters alone support over 7,000 jobs in Iowa and spend over$449 million annually on their sport, which in turn generates over$47.8 million in state tax revenue. • Visits to state parks, county parks, lakes and trails are estimated at 50 million visits per year, representing $2.63 billion in spending levels. • River recreation supports more than 6,350 jobs with $824 million in sales and $139 million of personal income. Recreational amenities and quality of life opportunities are critical to recruiting and retaining a highly educated and motivated workforce. Requested Action: Pass legislation to increase the state sales tax from 6 percent to 6 and 3/8 percent with the 3/8 of one percent to be deposited in the Natural Resources and Outdoor Recreation Trust Fund. Arts and Culture Great livable communities in Iowa must support culture, arts, history, and focused community development. Investment in cultural programs improves the quality of life in Iowa and helps to attract and retain a vibrant workforce which assists in developing and promoting Iowa's economic vitality. Nationally, the nonprofit arts and cultural segment alone �- produces $135 billion dollars in economic impact in the United States. According to the National Assembly of Arts Agencies, Iowa ranks 401" of all states in per capita spending of 43 cents for arts and culture. The National average is 97 cents. Neighboring states are ranked higher than Iowa: Minnesota 111 ($6.36); Missouri 2011 (80 cents), Nebraska 2nd (78 cents), Illinois 21st (79 cents). These total FY2014 appropriations include line-item funds designated by the legislature to pass through the state arts agency to other entities. In 2011, Dubuque participated in the most comprehensive economic impact study of the nonprofit arts and culture industry ever conducted in the United States, Arts & Economic Prosperity IV. It was conducted by Americans for the Arts, the nation's leading nonprofit organization for advancing the arts and arts education. The City of Dubuque was one of 182 study regions that participated in the study. In 2012, results showed that the nonprofit arts and culture industry in Dubuque generates $47.2 million in annual economic activity, supporting 1,530 full-time equivalent jobs and generating $5 24 million in local and state government revenues and $36.7 million in household income to local residents. The arts mean business. Leaders who care about the community and economic development can feel good about investing in the arts. What other industry can boast the quality of life benefits and the economic benefits the way the arts can? The arts have a vital role in stimulating and sustaining economic development. Contrary to popular belief, the arts are a bustling industry that supports a plethora of diverse jobs, generates significant revenues for local businesses, contributes to federal, state and local governments and provides quality of life that positions communities to compete in our 21St century creative economy. The Dubuque City Council has been a strong advocate for a strong advocate for a strong arts presence, making arts and culture a top priority for the last two years in a row. In 2004, the Council approved an Arts and Cultural Affairs Advisory Committee, $35,000 in annual project grants and established a Downtown Cultural Corridor. A$200,000 annual operating and special project support funding was established in 2005, and an additional $10,000 was added to that annually beginning in 2011. Another $300,000 in capital funds was allocated for the Art on the River public art program for ten years. Dubuque created a part time staff position of Arts and Cultural Affairs Coordinator in FY2009 with partial funding from Iowa Community Cultural Grants in FY 2009, 2010 and 2011. The position is now fully funded by the City. The coordinator works closely with the Commission to promote and increase awareness and market the arts and activities and allocate budgeted funding for the arts and cultural activities. The position has enabled the Commission to develop goals and priorities, to enhance the public art program by creating standards of excellence using regional, state and national models and refining the grant process to ensure the taxpayer's money is used in the best possible manner. The recent designation of the Historic Millwork District plan brings integrated strategies that include design guidelines, historic preservation, community gardens, central gathering spaces, arts venues and artistic streetscapes. The City has recognized the need for master arts planning which would include a public art plan in order to advance its' reputation as a regional arts hub. The City of Dubuque has provided $3 million dollars in funding for the arts since the establishment of the City's Arts and Cultural Affairs Advisory Commission in 2004. The Commission has managed the City's investment, allocated among three programs: $1.6 million has been awarded through the Operating Support Grant Program; $345,000 has been awarded through the Special Projects Grant Program that has leveraged a total of$814,192 in arts projects in our community, and; $205,000 has funded the Art on the River annual temporary public art exhibit at the Port of Dubuque. We are pleased to see that funding programs in the last budgeting year were restored somewhat from previously years. City funding alone is insufficient for the arts to flourish in Dubuque. The support of grant programs through the Department of Cultural Affairs is vital to the organizations and artists in Dubuque. The City currently has no funding programs for individual artists, so the Iowa Arts Council Project Grants help our local artists tremendously. Transforming the former ICCG Grant into the Jobs Creation Grants will assist many small organizations in our City to expand their capacity. On September 23, 2013, Iowa Arts Council staff presented a grant writing workshop in Dubuque which was highly attended, especially by younger art leaders in the community. Interaction with and support of a knowledgeable staff is integral to our state's arts and cultural initiatives. 25 Requested Action: Regard arts as an Iowa industry that is an economically sound investment that attracts audiences, spurs business development, supports jobs, generates state and local government revenue and is the cornerstone of tourism. Support programs in the Department of Cultural Affairs (Iowa Arts Council, State Historical Society of Iowa) to continue to recognize and promote Iowa's cultural heritage as key in recovery and strengthening of all Iowa communities, and increasing economic development. State funding of these programs leverages local support for arts and cultural organizations, historical organizations, educational programs, rehabilitation of historic buildings, and projects involving a variety of historic resources. Provide appropriate staff support within the Department of Cultural Affairs to provide previous levels of services to communities and citizens of Iowa through all programs and departments. Raise the ranking of Iowa from 40th place in per capital spending for the arts and culture as reported by the National Assembly of Arts Agencies, Iowa ranks 40th of all states in per capita spending of $.43 for arts and culture. Sustainability Energy Efficiency & Renewable/Alternative Energv Recently, the American Council for an Energy-Efficient Economy ranked Iowa 12th in the nation for its efforts to promote energy efficiency. Iowa scored highly in the category of building energy codes as one of only 17 states with a statewide code that meets or exceeds the latest International Energy Conservation Code standards for both residential and commercial buildings. Businesses, residents and local governments have taken advantage of existing incentive programs, but still have much work to do in order to make their new and existing buildings more energy efficient. As energy efficiency is achieved, private and public organizations as well as individuals have begun to explore a variety of alternative and renewable energy options to increase their energy independence, reduce dependence on coal and oil, reduce greenhouse gas emissions, improve the competitiveness of local business and improve public health. The City of Dubuque and local non-profits and businesses have established a strong focus on significantly improving energy efficiency in municipal, commercial and residential buildings. Most recently, the City joined the IEDA Community Energy Management Program to better manage energy use in our own facilities. The City is also committed to growing the percentage of energy which comes from local renewable or alternative energy sources. Requested Action: With the discontinuation of the Office of Energy Independence and its programs, it is critical for all state agencies (including, but not limited to, the Iowa Economic Development Authority, Iowa Utility Board, Department of Natural Resources and Department of Administrative Services) to develop programming, funding and regulatory flexibility to support and promote the development of additional energy efficiency efforts and the adoption of renewable and alternative energy sources. Successful energy efficiency incentive programs should be continued and Iowa should explore opportunities to remain competitive with other states in offering incentives for the installation and utilization of renewable and alternative energy. Specifically, the state should consider a 26 progressive energy policy that works with local governments and utilities to 1) remove barriers to widespread decentralized renewable energy use, 2) stabilize renewable energy incentives, and 3) support net metering and other opportunities to make renewable energy more cost-effective and accessible. The City supports state legislation to permit Property Assessed Clean Energy, or PACE, in Iowa. PACE financing offers an innovative way for property owners to pay for energy efficiency upgrades with strong ROIs that create jobs for Iowans. PACE programs can now be used in over 30 states, with over $30 million provided to improve buildings in the last 12 months according to the US Green Building Council. Long-term financing linked to properties incent investment in energy-efficiency and renewable energy projects with long-term ROIs, and promote equitable sharing of costs and savings among current and future owners and tenants. Additionally, the City supports Iowa Renewable Energy Jobs 2020's efforts to create Iowa clean energy jobs and save Iowans on their energy costs. The state should consider policies that support the objectives above in order to expand renewable energy and energy efficiency and reduce transportation costs. Public Health Community Health Centers Medicaid Reimbursement for Same-Day Medical, Oral Health and Behavioral Health Services Iowa's Community Health Centers (CHCS) provide care to more than 69,000 Medicaid patients, which is 16% of the state's total Medicaid population. As unique primary health care providers that conveniently offer medical, oral health and behavioral health services under one roof, CHCS frequently see patients who have scheduled appointments for more than one type of visit on the same day (for example, a patient will schedule a yearly medical exam and a dental cleaning on the same day). Unfortunately, current Iowa Medicaid reimbursement policy does not allow CHCS to be reimbursed for more than one visit if they occur on the same day. As Iowa moves toward providing a patient centered medical home (PCMH) for all Medicaid recipients, changing this reimbursement policy is instrumental in achieving the PCMH goal of providing patients the necessary care when and where they need and want it. Allowing patients to schedule same day appointments with more than one provider can alleviate barriers to accessing services, such as transportation to the health center. Reimbursing for each of these visits will ensure CHCS can cover the costs of providing care and help maintain their viability. Allowing reimbursement for same day visits will also facilitate the implementation of an integrated primary and behavioral health model at CHCS. This model, which is clinically effective and cost effective, utilizes close collaboration between a CHC's medical and behavioral health staff to provide a seamless continuum of care for patients. Visits ideally occur to both on the same day, reducing the high failure rate of referrals to behavioral health and allow for better coordination of medical and behavioral health problems. Other states already recognize the value of providing Medicaid same-day reimbursements: 27 states pay for substance abuse visits on the same day as medical visits; 32 states pay for mental health visits on the same day as medical visits; and 35 states pay for oral health visits on the same day as medical visits. 27 Requested Action: Allow Medicaid reimbursement for same-day medical, oral health and behavioral health services. Hotel and Food Establishment License Fees & Food Safety In the past 35 years, the Legislature has increased food licensing fees twice. Both times, the increase was not enough to cover the cost of operating the program. Because of the low fees, many counties have returned the food program to the Department of Inspection and Appeals (DIA) (DIA inspected 23 counties in 2009 and inspects 52 counties today). Because of the low fees, DIA has lowered its inspection frequency twice in the past three years. Inadequate and irregular license fee increases are starving Iowa's food safety system and have the potential to put the health and lives of the consuming public at risk. Requested Action: • Authorize an increase in food licensing fees to fund state and local food safety program activities as required by the Iowa Code and minimize the need to use local tax dollars to provide inspection services. Support SF 265 which increases food license fees and provides funding for adequate food establishment inspections. • Increase food licensing fees to fully fund food safety program activities in compliance with Iowa Code. DIA should be authorized to administer the food licensing fees through the Iowa Administrative Code. Establish an automatic fee adjustment mechanism to annually increase fees by the percentage increase in the consumer price index. • Support a revised food licensing fee schedule (rounded up to a whole number) and make both retail food establishment fees and food service establishment fees the same to reduce customer confusion. • Place food fees into the Administrative Rules and link it to the Consumer Price Index so that it can increase annually to keep pace with the rising cost of the program. Notice of Violation Currently, a notice of code violation must be sent via certified mail to a property owner if the City performs the required mitigation of the problem and assesses the cost to the property owner. We suggest that a notice be sent via regular mail to the property owner. Oftentimes, it is difficult for people to collect or pickup certified mail, particularly if they are not home at time of delivery. Certified also adds a significant cost ($2.87) to the mailing of each notice. Requested Action: Iowa Code Section 364.12 (h) changed to allow mailing via regular mail. Childhood Lead Poisoning Childhood lead poisoning is endemic to Iowa. Of Iowa children born in 2004, 97.7% were tested at least once before the age of six years, and 3.7% of these children were lead-poisoned (in 28 eight counties, more than 9% of the children were lead-poisoned). At the national level, the rate of lead poisoning among children under the age of six years is so low that it is no longer reported. Homes built prior to 1978 are likely to contain lead-based paint, and lead-based paint hazards are the leading cause of childhood lead poisoning. In 2009, the Iowa General Assembly passed a law requiring all children to have proof of a blood lead test prior to entering kindergarten. The percentage of children tested for lead poisoning has increased greatly, especially in lieu of CDC's new blood lead level of concern > 5mg/dl, which shows 76% of Dubuque children with a lead level of concern. Further complicating Iowan's ability to help their children, the Centers for Disease Control (CDC) eliminated a $594,000.00 grant which the Iowa Department of Public Health (IDPH) has historically received annually. This resulted in a 25% reduction in funds going to local health departments for lead poisoning surveillance activities, and, more importantly, essentially eliminated the technical capacity of the state level especially for data compilation and analysis. As IDPH keeps less than 5.0% of state funds allocated to the lead poisoning preventing program, staff time will now be used for enforcement activities related to contractors and inspectors, rather than the tracking and treatment of poisoned children and maintaining accurate data. Requested Action: Appropriate adequate funds to allow the Iowa Department of Public health to continue its crucial role as a technical advisor and data manager to local childhood lead poisoning prevention programs (CLPPP), and increase funding levels for local CLPPP programs. Healthy Local Foods During the 2010 Legislative Session, the Legislature _ illillIm charged the Leopold Center for Sustainable Agriculture with preparing a local food and farm plan containing policy and funding recommendations for supporting and expanding local food systems and for assessing and overcoming obstacles necessary to increase locally grown food production. The Healthy Local Foods principle of Dubuque's sustainability model aims to provide benefits of wholesome food from local producers, distributors, farms, gardens and hunters to all. The City and its partners engaged in the Healthy Local Foods initiative have participated in the forming of - the Local Food & Farm Plan. In order for local institutions and consumers to increase their purchase and consumption of local foods, barriers must be overcome that enable more produce and meat to be produced, processed and sold locally. Various studies have shown the value of a strong local food system as an economic development tool. Requested Action: Provide policy direction, funding and other resources to implement the recommendations of the Local Food & Farm Plan delivered to the Legislature in January 2011. 29 Partnerships Dubuque Community School District The creation and sustenance of a strong workforce and vibrant economy in Dubuque and Iowa, depend upon a well-funded educational program, with state of the art facilities, and essential educational tools. The scheduled sunset of the one cent sales tax for Iowa school districts restricts Iowa school districts' bonding ability. In addition, this sales tax is the sole source of funding for technology in Iowa schools. Sunsetting is scheduled in 2029. Requested action: We oppose the scheduled sunset in 2029 of the statewide one cent sales tax for Iowa schools. We support an extension of the one cent sales tax past 2029 in order to provide 21 st Century education for all Iowa students. We oppose placing a cap on the amount the districts can receive. Special Education Specific legislative action will be advanced related to the provision of special education services to Dubuque resident children and children from other communities served in Dubuque through a partnership between the Dubuque Community School District and Hillcrest Family Services The Dubuque Community School District (DCSD) and Hillcrest Family Services (HFS) have partnered for 25 years to provide specialized education services to up to 120 youth at a time at the HFS campus on Asbury Road. Prior to a change in interpretation by the Iowa Department of Education (IDOE), the partnership between the Dubuque Community School District and Hillcrest Family Services resulted in effective and cost efficient educational services for youth in trauma. Since late 2010 DCSD and HFS have been working with the Iowa Department of Education to resolve the issue of how administrative, occupancy, and some education costs should be reimbursed. The history of the partnership has been that HFS charges DCSD the actual costs for the specialized education and the DCSD then pays for DCSD students and bills other districts for their students. The interpretation of the IDOE is that these costs are not reimbursable to either DCSD or HFS, thus jeopardizing a very valuable program. The ending of this program would be extreme demands on our schools. The City of Dubuque has a stake in insuring the best educational environments for all residents in Dubuque. Requested Action: Support efforts of Hillcrest Family Services and the Dubuque Community School District and Hillcrest Family to change Iowa law to allow for the reimbursement of realistic staffing, administration, and occupancy costs. Northeast Iowa Community College Proposed Regent Policy on Performance Based Funding Recent proposed policy on performance based funding by the Iowa Board of Regent is well intentioned however will have significant unintended negative consequences on other Iowa post- 30 secondary educational institutions (community colleges and private colleges and universities), on the State's stated goal of workforce development and on local and regional economies. The proposed policy has already impacted regional community colleges with the result of declining enrollment at Kirkwood Community College (Cedar Rapids), Hawkeye Community College (Waterloo) and North Iowa Area Community College (Mason City). This policy could impact the University of Iowa as much as $50 million over the next three years, reducing the number of out of state students and negatively impacting funding at the University of Iowa's nationally and internationally renowned law school, medical school and Writer's Workshop. At a time when the State of Iowa is experiencing significant shortages of skilled workers over the next 10 years and a decline in Iowans of working age, this issue does not help in recruiting out-of- state students to be educated and hopefully work and start a family in Iowa. We may see existing businesses choosing to expand in another state and potential businesses electing not to come to Iowa. The implication on economic development cannot be understated. Another potential problem involves students enrolling at the three universities who might be better served at a community college or private college. These students, lured by intense marketing, might not realize the lack of fit between them and the university environment until it is too late. Some will drop out and hopefully turn to a community college or private college to continue their education. Some might simply drop out. Either scenario means that these students would incur college debt without gaining anything. For those who choose not to re-engage in education because of the negative experience, they will contribute to the shortage of a skilled workforce. They will be under- educated and most likely to be unable to pay off their college debt. Will state universities have the facilities to accommodate the students? Housing?What about availability of classes? Over-crowding often creates a longer tenure in undergraduate school for students due to lack of classroom space. Another semester or longer in school means more education debt and a delay into the workforce. With limited spaces, more Iowa students at the universities means enrolling fewer out-of-state students. Do we want to send a message that Iowa does not welcome out-of-state students? Requested Action: Reimbursement to regent institutions based upon admission of Iowa students is not good policy. Re-open the discussion and do not appropriate for the policy. Dubuque Area Convention and Visitors Bureau Dubuque County is a top tourism destination in the State of Iowa. Welcoming over 1.9 million visitors a year, tourism generates nearly$320 million in expenditures for our local economy and employs 2,800 people within the county. National conventions, sporting events, family, class and military reunions, Mississippi River passenger/excursion boat visits, motor coach tours and more, all take advantage of the amenities that Dubuque, Iowa has to offer including: Port of Dubuque, Historic Millwork District, Main Street, Field of Dreams, Mines of Spain, Eagle Point Park and more. Requested Action: Continue funding for the regional sports commission grant, support funding for passenger/excursion boat landing facility improvements in Iowa's Mississippi River communities, support the Tourism Improvement District legislation and support funding for the Parks to People program and the State of Iowa Tourism office. 31 Mental Health Funding Beginning in 1998, the State has consistently failed to provide the necessary assistance to counties that it committed to in providing mental health services to some of our state's most vulnerable citizens. This has resulted in an increasing burden to local property tax payers. Now, the State made the decision to no longer provide any resources to fund the redesigned mental health delivery system and leave the counties responsible for providing these services. This has caused an inequitable burden on local property tax payers and placed a strain on counties, now regions, who struggle to find the necessary resources to provide these services. Now levy disparity within regions is causing some counties to shoulder a disproportionate per capita share of the financial burden of the current system. Unless the State allows counties to address these issues within their respective regions, beginning in FY 17, the regional system will begin to collapse. Requested Action: We would like the state to fulfill its commitments to assist counties in providing mental health services, or failing that, allow regions the necessary authority to equalize the per capita amounts. The Legislature can do this by retaining the per capita rate cap on the mental health levy but eliminating the frozen dollar cap and allow individual counties and regions to equalize the funding they provide for mental health services. This change would eliminate the disparity in the per capita levies that currently exist between counties and provide the necessary flexibility to provide services. 32